-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SF4den6q+qDKXMgJl68Uua0u73XjGHtYS+vZjIHZXZjrR97uLz7h++tVvh1+WrEJ +Z/0O8XU4nNmXEst+fhxSQ== 0000928606-95-000112.txt : 19951108 0000928606-95-000112.hdr.sgml : 19951108 ACCESSION NUMBER: 0000928606-95-000112 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951107 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: 95587722 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 and six months ended September 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 SEPTEMBER 30, 1995. -1-
J.MICHAELS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Amount in thousands except per share data) For the 6 and 3 months ended 9/30 Year to date Quarter 1995 1994 1995 1994 Net sales $2,296 $2,822 $1,078 $1,316 Credit service charges 677 754 341 369 Total revenues 2,973 3,576 1,419 1,685 Cost of sales and operating expenses Cost of sales, including buying and occupancy expenses 1,058 1,256 501 586 Selling, general and adminstrative expenses 1,846 2,050 970 1,079 Bad debts expense 252 194 181 110 Depreciation and amortization 47 73 15 37 3,203 3,573 1,667 1,812 Operating income (230) 3 (248) (127) Other income (expense) net Interest and dividend income 222 154 105 83 Capital gains (losses) 38 (42) 33 (38) Other, net 2 32 - 13 262 144 138 58 - - - - Income before income taxes 32 147 (110) (69) Taxes on income 19 63 (49) (32) Net income $13 $84 ($61) ($37) Net income per share 0.02 0.10 (0.07) (0.04) Weighted number of shares outstanding 851,282 851,282 851,282 851,282 Cash dividends per share 0.18 0.18 0.09 0.09
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J.MICHAELS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS 9/30/95 9/30/94 3/31/95 ASSETS Current Assets: Cash and cash equivalents $6,796,910 $5,321,078 $9,057,812 Restricted cash - 924,637 1,012,012 Available for sale securities 4,00l,631 4,722,223 1,456,562 Customer's installment receivables net of allowances for doubtful accounts of $400,000 in both years 3,530,772 4,132,470 4,080,538 Other trade receivables 71,251 94,632 28,066 Inventories net of LIFO reserve 820,299 810,920 667,697 Prepaid income taxes 192,414 246,545 226,674 Deferred income taxes 209,691 258,866 209,691 Prepaid expense and other current assets 11,523 31,969 38,016 Total current assets 15,634,491 16,543,340 16,777,068 Property, plant and equipment at cost net of accumulated depreciation and amortization (Note 3) 407,758 426,534 422,687 Assets held for lease, net of accumulated amortization (Note 3) 197,277 130,623 93,060 Deferred income taxes 44,292 10,000 44,292 Total Assets $16,283,818 $17,110,497 $17,337,107 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion,long term debt - $11,667 - Accounts payable and accrued expenses 521,197 571,463 427,163 Short positions in marketable securities - 924,637 1,012,012 Income taxes payable - - - Total current liabilities 521,197 1,507,767 1,439,175 Shareholders' Equity 15,762,621 15,602,730 15,897,932 Total Liabilities and shareholders' equity $16,283,818 $17,110,497 $17,337,107
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J.MICHAELS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (Unaudited) Amount in thousands For the six months ended 9/30/95 9/30/94 Cash flow from operating activities: Net income $19 $84 Adjustments to reconcile net income to net cash provided by operating activities- Reversal of deferred income taxes - - Depreciation 47 72 Decrease (increase) in receivables 506 457 Decrease (increase) in inventories, prepaid expenses (92) (88) Increase (decrease) in payables 94 12 Net cash flows from operating activities 574 537 Cash flow applied to investing activities: Purchase of fixed assets (136) (35) Decrease (increase) in restricted cash 1,012 (114) Decrease (increase) in investments (3,558) 5 Net cash flows from (applied to) investing activities (2,682) (144) Cash flow applied to financing activities: Reduction of long term debt - - Purchase of treasury stock - - Payment of cash dividends to stockholders (153) (153) Net cash flow from (applied to) investing activities (153) (153) Net increase (decrease) in cash and cash equivalents: (2,261) 240 Cash and cash equivalents, beginning of period 9,058 5,081 Cash and cash equivalents, end of period $6,797 $5,321
4 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 six 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 September 30, 1995 $982,016 $754,168 At September 30, 1994 $981,125 $695,434 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 September 30, 1995 -0- At September 30, 1994 ($23,711) - -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 six months decreased from the previous year by 16.9%. Net earnings decreased by 84.5%. The decrease in sales reflects the continued weakness in regional economy. Gross margin for the six months was 53.9% as compared to 55.4% last year. Credit Service Charges decreased by 10.2% over the previous year. Selling general and administrative expenses decreased by $204,000 primarily representing decreased payroll and payroll related costs. Capital gains realized for the current six months was approximately $38,000. At September 30, 1995 the Company had no investments which varied with the market. The reserve for unrealized gains, and losses therefore, was reduced to zero. - -6-
RESULTS OF OPERATIONS Ratios Useful in Analyzing the Results of Operations 6 months ended 9/30 1995 1994 Sales, including credit service charges (in thousands) $2,973 $3,576 Percent increase (decrease) over previous year (16.9) (14.9) Cost of sales as a percent of sales 35.6 35.1 Selling, general & administrative expenses- as a percent of sales 62.1 57.3 Bad debt expense as a percent of sales 8.5 5.4 Depreciation and amortization as a percent of sales 1.6 2.0 Interest and dividend income as a percent of sales 7.5 4.3 Net income (in thousands) $13 $84 Net income as a percent of sales 0.4 2.3
7 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, Treasurer Martin Kasman, Treasurer Date: November 13, 1995 - -9- EX-27 2 ART. 5 FDS 6 MONTHS ENDED 9/30/95 WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
5 J. MICHAELS, INC. 3 MONTHS ENDED 9/30/95 [TEXT] 1,000 6-MOS MAR-31-1996 SEP-30-1995 6797 4002 3932 400 820 15634 1390 982 16284 521 0 616 0 0 0 16284 2296 2973 1058 3203 0 0 0 32 19 13 0 0 0 13 .02 .02
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