0000928606-95-000089.txt : 19950818 0000928606-95-000089.hdr.sgml : 19950818 ACCESSION NUMBER: 0000928606-95-000089 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950817 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MICHAELS J INC CENTRAL INDEX KEY: 0000065596 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-FURNITURE STORES [5712] IRS NUMBER: 111796714 STATE OF INCORPORATION: NY FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-05703 FILM NUMBER: 95564970 BUSINESS ADDRESS: STREET 1: 182 SMITH ST CITY: BROOKLYN STATE: NY ZIP: 11201 BUSINESS PHONE: 7188526100 MAIL ADDRESS: STREET 1: 182 SMITH ST CITY: BROOKLYN STATE: NY ZIP: 11201 10-Q 1 Securities and exchange commission Washington, D.C. 20549 Form 10-Q Quarterly Report Under Section 13 or 15(D) of the Securities Exchange Act of 1934 Commission File Number 0-5703 For Quarter ended June 30, 1995 Exact name of registrant as specified in it's charter - J. Michaels, Inc. State or other jurisdiction of incorporation or organization - New York I.R.S. employer identification no. - 11-1796714 Address of principal executive offices - 182 Smith Street Brooklyn, N.Y. 11201 Registrant's telephone number, including area code - 718-852-6100 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(D) of the securities exchange act of 1934, during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. Yes X No Indicate the number of shares outstanding of each of the issuers of common stock, as of the latest practicable date. 851,282 shares of common stock of $1.00 par value, as of June 30, 1995. -1- J.MICHAELS,INC. AND SUBSIDIARIES Pg 2 CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Amount in thousands except per share data) For the 3 months ended 6/30 1995 1994 Net sales $1,218 $1,506 Credit service charges 336 385 _________ _______ 1,554 1,891 Cost of sales and operating expenses Cost of sales,including buying and occupancy expenses 557 670 Selling,general and adminstrative expenses 876 1,005 Bad debts expense 71 84 Depreciation and amortization 32 36 ________ _______ 1,536 1,795 ------- ------- Operating income 18 96 Other income (expense) net Interest and dividend income 117 71 Capital gains (losses) 5 (4) Other,net 2 19 _______ _______ 124 86 -------- ------- Income before income taxes 142 182 Taxes on income 62 80 --------- ------- Net income $80 $102 ========= ======= Net income per share 0.09 0.11 Weighted number of shares outstanding 851,282 851,282 Cash dividends per share 0.09 0.09 J.MICHAELS,INC. AND SUBSIDIARIES Pg3 CONSOLIDATED BALANCE SHEETS 6/30/95 6/30/94 3/31/95 ASSETS Current Assets: Cash and cash equivalents $6,099,251 $5,292,266 $9,057,812 Restricted cash 1,320,425 849,125 1,012,012 Available-for-sale securities 4,593,354 4,619,153 1,456,562 Customer's installment receivables net of allowances for doubtful accounts of $400,000 in both years 3,864,587 4,451,587 4,080,538 Other trade receivables 53,914 110,391 28,066 Prepaid income taxes 87,414 115,645 226,674 Deferred income taxes 209,691 258,866 209,691 Inventories net of LIFO reserve 755,398 849,757 667,697 Prepaid expense and other current assets 20,050 25,830 38,016 ------------------------------------ Total current assets 17,004,084 16,572,620 16,777,068 Property,plant and equipment at cost net of accumulated depreciation and amortization (Note 3) 411,763 442,329 422,687 Assets held for lease,net of accumulated amortization Note 3) 135,565 131,120 93,060 Deferred income taxes 44,292 10,000 44,292 ------------------------------------ Total Assets $17,595,704 $17,156,069 $17,337,107 ==================================== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion,long term debt - $19,167 - Accounts payable and accrued expenses 357,440 597,537 427,163 Short positions in marketable securities 1,320,425 849,125 1,012,012 ----------------------------------- Total current liabilities 1,677,865 1,465,829 1,439,175 Shareholders' equity 15,917,839 15,690,240 15,897,932 ------------------------------------ Total Liabilities and shareholders' equity $17,595,704 $17,156,069 $17,337,107 ==================================== J. MICHAELS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (Unaudited) Amount in thousands for the 3 months ended 6/30/95 6/30/94 Cash flow from operating activities: Net income $80 $102 Adjustment to reconcile net income to net cash provided by operating activities- Depreciation 32 36 Decrease (increase) in receivables 190 122 Decrease (increase) in inventories, prepaid expenses 70 10 Increase (decrease) in payables 239 (30) Net cash flows from operating activities 611 240 Cash flow applied to investing activities: Purchase of fixed assets (64) (14) Decrease (increase) in restricted cash (308) (39) Decrease (increase) in investments (3,120) 103 Net cash flows from (applied to) investing activities (3,492) 50 Cash flow applied to financing activities: Payment of cash dividends to stockholders (78) (78) Net cash flow from (applied to) investing activities (78) (78) Net increase (decrease) in cash and cash equivalents (2,959) 212 Cash and cash equivalents, beginning of period 9,058 5,080 Cash and cash equivalents, end of period $6,099 $5,292 Notes To Consolidated Financial Statements 1. Earnings per share are computed by dividing net earnings by weighted average number of common shares outstanding during the period. 2. The financial information presented is unaudited. Such information reflects all adjustments, which in the opinion of management, are necessary to present fairly the consolidated results of operations and changes in financial position for the three months then ended. The financial statements and related information for the three months ended June 30, 1994 has been restated to conform to restated statements presented in 10K filed for year ended March 31, 1995. 3. Accumulated depreciation and amortization was: Property Plant Leasing Equipment Assets At June 30, 1995 $978,011 $744,568 At June 30, 1994 $965,331 $674,976 At March 31, 1995 $956,137 $733,451 4. The Statements of Cash Flows are presented pursuant to the provisions of Statement of Financial Accounting Standards No. 95, "Statement of Cash Flows". 5. Shareholders' equity includes net unrealized gain (loss) on Securities available for sale. At June 30, 1995 $17,944 At June 30, 1994 ($67,723) -5- Management's Discussion and Analysis of Financial Structure and Results of Operation J. Michaels, Inc. and its subsidiaries are principally engaged in the retail sale of household furnishings, primarily on credit. The Company also operates a retail furniture rental division in the Buffalo area. Approximately 85% of retail furniture sales were made to revolving credit customers. Sales (including finance charges) for the three months decreased from the previous year by 17.8% Net earnings decreased by 3.0%. The decrease in sales reflects the continued weakness in regional economy. Gross margin for the three months was 54.3% as compared to 55.5% last year. Credit Service Charges decreased by 12.7% over the previous year. Selling general and administrative expenses decreased by $129,000 primarily representing decreased payroll and payroll related costs. Capital gains realized for the current quarter was $4,916. Net unrealized gains for the quarter was $17,000. -6- RESULTS OF OPERATIONS Pg 7 Ratios Useful in Analyzing the Results of Operations 3 months ended 6/30/95 6/30/94 Sales, including credit service charges (in thousands) $1,554 $1,891 Percent increase (decrease) over previous year (17.8) (12.8) Cost of sales as a percent of sales 35.8 35.4 Selling, general & administrative expenses- as a percent of sales 56.4 53.1 Bad debt expense as a percent of sales 4.6 4.4 Depreciation and amortization as a percent of sales 2.0 1.9 Interest and dividend income as a percent of sales 7.5 3.8 Net income (in thousands) $80 $102 Net income, as a % of sales 5.1 5.4 Part II - Other Information None - 8 - Signatures Pursuant to the requirements of the securities exchanges act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. J. Michaels, Inc. By: /s/ Martin Kasman Martin Kasman, Treasurer Date: August 16, 1995 -9- EX-27 2 ART. 5 FDS FOR 3 MONTHS ENDED 6/30/95
5 J. Michaels, Inc. 3 Months Ended 6/30/ 1,000 3-MOS MAR-31-1996 JUN-30-1995 6099 4593 4264 400 755 17004 1390 978 17596 1677 0 616 0 0 0 17596 1218 1554 557 1536 0 0 0 142 62 80 0 0 0 80 .09 .09