-----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, MteUWTOqVYmopAnvyBrMp/r9pBiZ88fKoClJKQvTrhgNAHdJa4+nD/GRyv/ZJjGw BWVsLvorQM83PuR6iHqNTA== 0000067517-96-000007.txt : 19960515 0000067517-96-000007.hdr.sgml : 19960515 ACCESSION NUMBER: 0000067517-96-000007 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960514 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: 96564035 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, 1996 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, 1996 , the Registrant had outstanding 2,186,536 shares of Capital Stock, par value $2.50 per share and 2,039,754 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, 1996 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, 1995. 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. The weighted average number of shares outstanding was 4,226,719 and 4,239,290 in the first three months of 1996 and 1995, respectively. THE MONARCH CEMENT COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS--MARCH 31, 1996 AND DECEMBER 31, 1995
ASSETS LIABILITIES AND STOCKHOLDERS' INVESTMENT 1 9 9 6 1 9 9 5 1 9 9 6 1 9 9 5 CURRENT ASSETS: CURRENT LIABILITIES: Cash and cash equivalents, at cost Accounts and notes payable $ 3,533,153 $ 3,057,538 which approximates market $ 2,761,315 $ 5,071,268 Accrued liabilities 1,887,788 3,580,727 Short term investments, at cost Total current liabilities $ 5,420,941 $ 6,638,265 which approximates market 5,605,871 7,073,446 Receivables, less allowances of $547,000 in 1996 and $538,000 in 1995 for doubtful accounts 7,655,233 8,135,769 ACCRUED POSTRETIREMENT BENEFITS 9,695,615 9,714,799 Inventories, priced at cost which is not in excess of market- Cost determined by last-in, first-out method- ACCRUED PENSION EXPENSE 418,776 452,699 Finished cement $ 3,664,734 $ 2,181,014 Work in process 1,231,482 603,886 Building products 1,109,073 1,010,644 Cost determined by first-in, MINORITY INTEREST IN CONSOLIDATED first-out method- SUBSIDIARIES 1,985,895 1,953,237 Fuel, gypsum, paper sacks and other 1,673,940 1,616,793 Cost determined by average method- Operating and maintenance supplies 5,933,293 5,465,850 STOCKHOLDERS' INVESTMENT: Total inventories $13,612,522 $10,878,187 Capital stock, par value $2.50 Refundable federal and state per share-Authorized 10,000,000 income taxes 116,971 116,971 shares, Issued 2,179,469 shares Deferred income taxes 420,000 420,000 at 3-31-96 and 2,185,869 shares Prepaid expenses 213,612 36,846 at 12-31-95 $ 5,448,672 $ 5,464,672 Total current assets $30,385,524 $31,732,487 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 2,046,821 shares at 3-31-96 and and depletion of $69,011,706 in 1996 2,053,421 shares at 12-31-95 5,117,053 5,133,553 and $68,057,293 in 1995 22,965,905 22,517,810 Retained Earnings 30,171,508 29,806,550 $40,737,233 $40,404,775 DEFERRED INCOME TAXES 2,350,000 2,410,000 Plus: Unrealized holding gain 703,000 619,000 OTHER ASSETS 3,260,031 3,122,478 Total stockholders' investment $41,440,233 $41,023,775 $58,961,460 $59,782,775 $58,961,460 $59,782,775
THE MONARCH CEMENT COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
For the Three Months Ended March 31, March 31, 1996 1995 NET SALES $13,644,086 $13,448,787 COST OF SALES 11,276,243 11,076,739 Gross profit from operations $ 2,367,843 $ 2,372,048 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 1,709,951 1,635,867 Income from operations $ 657,892 $ 736,181 OTHER INCOME (EXPENSE): Interest income $ 130,923 $ 92,495 Other, net (31,853) (423,929) $ 99,070 $ (331,434) Income before provision for taxes on income $ 756,962 $ 404,747 PROVISION FOR TAXES ON INCOME 275,000 165,000 NET INCOME (Per share-$.11 in 1996 and $.06 in 1995) $ 481,962 $ 239,747 RETAINED EARNINGS, beg. of period 29,806,550 24,081,613 Less purchase and retirement of treasury stock 117,004 - RETAINED EARNINGS, end of period $30,171,508 $24,321,360
THE MONARCH CEMENT COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Months Ended March 31, March 31, 1996 1995 OPERATING ACTIVITIES: Net income $ 481,962 $ 239,747 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and depletion 1,029,532 881,960 (Increase) decrease in long-term notes receivable 7,397 (64,481) (Gain) loss on disposal of assets (4,217) 17,519 Change in current assets and liabilities net of effects from purchase of subsidiaries: (Increase) decrease in receivables, net 480,536 (186,375) Increase in inventories (2,734,335) (3,058,984) Increase in prepaid expenses (176,766) (98,975) Decrease in accounts payable, notes payable and accrued liabilities (201,455) (99,009) Decrease in deferred income taxes 60,000 105,000 Increase (decrease) in postretirement benefits (19,184) 41,639 Increase (decrease) in accrued pension expense (33,923) 33,000 Minority interest in earnings of subsidiaries 61,924 67,362 Net cash used for operating activities $(1,048,529) $(2,121,597) INVESTING ACTIVITIES: Acquisition of property, plant and equipment $(1,482,256) $(1,456,464) Net sales (purchases) of subsidiaries' stock - 226,573 Proceeds from disposals of property, plant and equipment 11,455 31,693 Increase in other assets (63,559) (97,133) Decrease in short term investments 1,467,575 3,002,722 Net cash provided by (used for) investing activities $ (66,785) $ 1,707,391 FINANCING ACTIVITIES: Cash dividends $(1,015,869) $ (932,644) Subsidiaries' dividends paid to minority interest (29,266) (70,742) Purchase of treasury stock (149,504) - Net cash used for financing activities $(1,194,639) $(1,003,386) NET DECREASE IN CASH AND CASH EQUIVALENTS $(2,309,953) $(1,417,592) CASH AND CASH EQUIVALENTS, beginning of year 5,071,268 3,668,782 CASH AND CASH EQUIVALENTS, end of period $ 2,761,315 $ 2,251,190 Interest paid $3,746 $39,270 Income taxes paid $485,656 $326,203
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 1996 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 The registrant experienced insignificant changes in sales volume and a moderate increase in sales prices during the first quarter of 1996 as compared to the first quarter of 1995 resulting in minor changes in net sales and cost of sales. Demand for cement and ready-mixed concrete in the registrant's market area was excellent during both the first quarter of 1996 and the first quarter of 1995 and is expected to continue during the balance of 1996. During 1995, other expense was adversely affected by the settlement of a disputed contract requiring the purchase of a specified volume of rock for use in the 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, 1996. (b) There were no reports required to be filed on Form 8-K during the quarter January 1, 1996 to March 31, 1996, 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 14, 1996 /s/ Jack R. Callahan Jack R. Callahan President Date May 14, 1996 /s/ Lyndell G. Mosley Lyndell G. Mosley, CPA Assistant Secretary-Treasurer (Principal Financial Officer) EX-27 2
5 THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE MONARCH CEMENT COMPANY AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS FOR THE QUARTER ENDED MARCH 31, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 3-MOS DEC-31-1996 MAR-31-1996 2,761,315 5,605,871 8,202,233 547,000 13,612,522 30,385,524 91,977,611 69,011,706 58,961,460 5,420,941 0 0 0 10,565,725 29,468,508 58,961,460 13,644,086 13,644,086 11,276,243 11,276,243 0 0 0 756,962 275,000 481,962 0 0 0 481,962 .11 .11
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