-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, kqxT1eA97dk9dBBwaXZtrqGosUw4iLZBEq4pKeB24SMcDXrbtYopfdoiXGqMjZGl 87usIfrUGlby+R6PVSp/jQ== 0000067517-95-000004.txt : 19950516 0000067517-95-000004.hdr.sgml : 19950516 ACCESSION NUMBER: 0000067517-95-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950515 FILED AS OF DATE: 19950515 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MONARCH CEMENT CO CENTRAL INDEX KEY: 0000067517 STANDARD INDUSTRIAL CLASSIFICATION: CONCRETE GYPSUM PLASTER PRODUCTS [3270] IRS NUMBER: 480340590 STATE OF INCORPORATION: KS FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-02757 FILM NUMBER: 95538794 BUSINESS ADDRESS: STREET 1: P O BOX 1000 CITY: HUMBOLDT STATE: KS ZIP: 66748 BUSINESS PHONE: 3164732225 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1995 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-2757 THE MONARCH CEMENT COMPANY (Exact name of registrant as specified in its charter) KANSAS 48-0340590 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) P.O. BOX 1000, HUMBOLDT, KANSAS 66748-1000 (Address of principal executive offices) (Zip Code) (316) 473-2225 (Registrant's telephone number, including area code) (Former name, former address and former fiscal year, if changed since last report) 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) has been subject to such filing requirements for the past 90 days. YES X NO As of May 10, 1995 , the Registrant had outstanding 2,173,989 shares of Capital Stock, par value $2.50 per share and 2,065,301 shares of Class B Capital Stock, par value $2.50 per share. PART I. FINANCIAL INFORMATION NOTES TO THE SECURITIES AND EXCHANGE COMMISSION REPORT FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1995 l. The condensed financial statements included herein have been prepared by the registrant, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the registrant believes that the disclosures are adequate to make the information presented not misleading. The accompanying financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results of operations for the interim periods presented. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the registrant's latest annual report on Form 10-K. 2. For a summary of accounting policies, the reader should refer to Note 1 of the consolidated financial statements included in the registrant's annual report on Form 10-K for the fiscal year ended December 31, 1994. 3. The net income per share of capital stock has been calculated based on the weighted average shares outstanding during each of the reporting periods after giving retroactive effect to a stock dividend of one share of Class B capital stock for each share of Capital stock outstanding. The weighted average number of shares outstanding was 4,239,290 in the first quarter of 1995 and 1994. THE MONARCH CEMENT COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS--MARCH 31, 1995 AND DECEMBER 31, 1994
ASSETS LIABILITIES AND STOCKHOLDERS' INVESTMENT 1 9 9 5 1 9 9 4 1 9 9 5 1 9 9 4 CURRENT ASSETS: CURRENT LIABILITIES: Cash and cash equivalents, at cost Accounts and notes payable $ 4,132,280 $ 3,826,624 which approximates market $ 2,251,190 $ 3,668,782 Accrued liabilities 1,539,904 2,877,213 Short term investments, at cost Total current liabilities $ 5,672,184 $ 6,703,837 which approximates market 2,356,029 5,358,751 Receivables, less allowances of $428,000 in 1995 and $429,000 in 1994 for doubtful accounts 7,343,477 7,157,102 ACCRUED POSTRETIREMENT BENEFITS 9,643,878 9,602,239 Inventories, priced at cost which is not in excess of market- Cost determined by last-in, first-out method- ACCRUED PENSION EXPENSE 476,658 443,658 Finished cement $ 3,804,133 $ 1,348,752 Work in process 767,410 258,465 Building products 1,029,723 974,157 Cost determined by first-in, MINORITY INTEREST IN CONSOLIDATED first-out method- SUBSIDIARIES 1,597,022 1,373,829 Fuel, gypsum, paper sacks and other 1,358,016 1,382,900 Cost determined by average method- Operating and maintenance supplies 4,964,481 4,900,505 STOCKHOLDERS' INVESTMENT: Total inventories $11,923,763 $ 8,864,779 Capital stock, par value $2.50 Refundable federal and state per share-Authorized 10,000,000 income taxes 1,073,858 1,073,858 shares, Issued 2,168,231 shares Deferred income taxes 370,000 370,000 at 3-31-95 and 2,156,026 shares Prepaid expenses 128,746 29,771 at 12-31-94 $ 5,420,577 $ 5,390,065 Total current assets $25,447,063 $26,523,043 Class B Capital stock, par value $2.50 per share-Authorized PROPERTY, PLANT AND EQUIPMENT, at 10,000,000 shares, Issued cost, less accumulated depreciation 2,071,059 shares at 3-31-95 and and depletion of $65,165,531 in 1995 2,083,264 shares at 12-31-94 5,177,648 5,208,160 and $64,459,510 in 1994 21,516,102 20,988,202 Retained Earnings 24,321,360 24,081,613 $34,919,585 $34,679,838 DEFERRED INCOME TAXES 2,315,000 2,420,000 Plus: Unrealized holding gain 267,900 111,800 Less: Excess pension liability 393,214 393,214 OTHER ASSETS 2,905,848 2,590,742 Total stockholders' investment $34,794,271 $34,398,424 $52,184,013 $52,521,987 $52,184,013 $52,521,987
THE MONARCH CEMENT COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
For the Three Months Ended March 31, March 31, 1995 1994 NET SALES $13,448,787 $13,183,155 COST OF SALES 11,076,739 11,288,832 Gross profit from operations $ 2,372,048 $ 1,894,323 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 1,635,867 1,595,562 Income from operations $ 736,181 $ 298,761 OTHER INCOME (EXPENSE): Interest income $ 92,495 $ 82,403 Other, net (423,929) (15,491) $ (331,434) $ 66,912 Income before provision for taxes on income $ 404,747 $ 365,673 PROVISION FOR TAXES ON INCOME 165,000 160,000 NET INCOME (Per share-$.06 in 1995 and $.05 in 1994) $ 239,747 $ 205,673 RETAINED EARNINGS, beginning of period 24,081,613 27,247,630 RETAINED EARNINGS, end of period $24,321,360 $27,453,303
THE MONARCH CEMENT COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Months Ended March 31, March 31, 1995 1994 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 239,747 $ 205,673 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and depletion 881,960 807,642 Increase in long-term notes receivable (64,481) - Loss on disposal of assets 17,519 - Gain on sale of other investments - (41,341) Change in current assets and liabilities net of effects from purchase of subsidiaries: Increase in receivables, net (186,375) (1,193,089) Increase in inventories (3,058,984) (1,082,763) Increase in prepaid expenses (98,975) (149,451) Decrease in accounts payable, notes payable and accrued liabilities (99,009) (4,897) Decrease in deferred income taxes 105,000 - Increase in postretirement benefits 41,639 2,159 Increase in accrued pension expense 33,000 18,390 Minority interest in earnings of subsidiaries 67,362 70,432 Net cash used for operating activities $(2,121,597) $(1,367,245) CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition of property, plant and equipment $ (1,456,464) $ (790,801) Net sales (purchases) of subsidiaries stock 226,573 (554,613) Proceeds from disposals of property, plant and equipment 31,693 - Payment for purchases of other investments, net - (222,520) Proceeds from disposals of other investments - 240,823 (Increase) decrease in other assets (97,133) 1,419 Decrease in short term investments 3,002,722 3,386,923 Net cash provided by investing activities $ 1,707,391 $ 2,061,231 CASH FLOWS FROM FINANCING ACTIVITIES: Cash dividends $ (932,644) $ (847,858) Subsidiaries' dividends paid to minority interest (70,742) (21,000) Net cash used for financing activities $(1,003,386) $ (868,858) NET DECREASE IN CASH AND CASH EQUIVALENTS $(1,417,592) $ (174,872) CASH AND CASH EQUIVALENTS, beginning of year 3,668,782 1,665,877 CASH AND CASH EQUIVALENTS, end of period $ 2,251,190 $ 1,491,005 Interest paid $39,270 $11 Income taxes paid $326,203 $799,526
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Liquidity The registrant's ability to generate cash adequate to meet its needs has been derived primarily from operations. Cash and short term investments decreased during the first quarter of 1995 primarily due to funding increased inventories and capital expenditures. The registrant generally produces additional inventory during this quarter in anticipation of sales volume in excess of production capabilities during the summer and early fall. Results of Operations Demand for cement and ready-mixed concrete in the registrant's market area has been excellent and is expected to continue at high levels for the balance of 1995. The registrant experienced a slight decrease in sales volume and a moderate increase in sales prices during the first quarter of 1995 as compared to the first quarter of 1994 resulting in insignificant changes in net sales and cost of sales. The slight decrease in sales volume can be attributed to adverse weather conditions during the first quarter of 1995. The increase in other expense was primarily due to the settlement of a disputed contract requiring the purchase of a specified volume of rock for use in ready-mixed concrete produced by one of the registrant's subsidiaries. This conflict was resolved during the first quarter of 1995 with the payment of $265,000 plus $39,000 interest Seasonality The registrant's highest revenue and earnings historically occur in its second and third fiscal quarters, April through September. PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (a) There are no exhibits required to be filed for the quarter ended March 31, 1995. (b) There were no reports required to be filed on Form 8-K during the quarter January 1, 1995 to March 31, 1995, inclusive, for which this Form 10-Q is being filed. S I G N A T U R E S Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. THE MONARCH CEMENT COMPANY (Registrant) Date May 12, 1995 /s/ Jack R. Callahan Jack R. Callahan President Date May 12, 1995 /s/ Lyndell G. Mosley Lyndell G. Mosley, CPA Assistant Secretary-Treasurer (Principal Financial Officer) EX-27 2 ART. 5 FDS FOR 1ST QUARTER 10-Q
5 THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE MONARCH CEMENT COMPANY AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS FOR THE QUARTER ENDED MARCH 31, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE T0 SUCH FINANCIAL STATEMENTS. 3-MOS DEC-31-1995 MAR-31-1995 2,251,190 2,356,029 7,771,477 428,000 11,923,763 25,447,063 86,681,633 65,165,531 52,184,013 5,672,184 0 10,598,225 0 0 24,196,046 52,184,013 13,448,787 13,448,787 11,076,739 11,076,739 0 0 0 404,747 165,000 239,747 0 0 0 239,747 .06 .06
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