-----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, YfeAzTEgj/hyEYRjTVaE3DvyM7COqKz1/Ny/jEhWiCmRfh4S5UN+NuGcRYqur6VA XrI6w858/MOJPTYpTCHVNA== 0000950152-95-000952.txt : 19950517 0000950152-95-000952.hdr.sgml : 19950516 ACCESSION NUMBER: 0000950152-95-000952 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950512 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MONARCH MACHINE TOOL CO CENTRAL INDEX KEY: 0000067532 STANDARD INDUSTRIAL CLASSIFICATION: MACHINE TOOLS, METAL CUTTING TYPES [3541] IRS NUMBER: 344307810 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-01997 FILM NUMBER: 95537235 BUSINESS ADDRESS: STREET 1: 615 N OAK ST STREET 2: PO BOX 668 CITY: SIDNEY STATE: OH ZIP: 45365 BUSINESS PHONE: 5134924111 MAIL ADDRESS: STREET 1: 615 N OAK ST STREET 2: PO BOX 668 CITY: SIDNEY STATE: OH ZIP: 45365 10-Q 1 MONARCH MACHINE 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarter ended Commission File No. 1-1997 March 31, 1995 THE MONARCH MACHINE TOOL COMPANY AND SUBSIDIARIES An Ohio Corporation Employer Identification No. 34-4307810 615 North Oak Street, Sidney, Ohio 45365 Telephone 513/492-4111 Securities registered pursuant to Section 12(b) of the act: Name of each exchange Title of each class on which registered - ------------------- ------------------- Common Shares, without New York Stock Exchange Inc. par value ------------------- 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 twelve months, and (2) has been subject to such filing requirements for the past 90 days. Yes x. No . --- --- The number of common shares outstanding as of May 2, 1995 was 3,744,967. There are a total of 9 pages filed in this document. 2 PART 1 - FINANCIAL INFORMATION THE MONARCH MACHINE TOOL COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET MARCH 31, 1995 AND DECEMBER 31, 1994 (All money amounts stated in thousands of dollars)
ASSETS 3-31-95 12-31-94 - ------ ------- -------- Unaudited Cash $ 2,550 $ 30 Accounts receivable Customers 20,700 21,484 Earned and unbilled on partially completed contracts 3,032 4,946 Inventories 22,351 20,187 Other current assets 3,085 2,589 ------- ------- Current assets 51,718 49,236 Property, plant & equipment - net 17,034 17,372 Prepaid pension costs 11,129 11,161 Other assets 2,054 573 ------- ------- 81,935 78,342 ======= ======= LIABILITIES - ----------- Short term borrowings 7,000 7,000 Accounts payable 7,590 4,781 Accrued liabilities 3,455 3,519 Advance payments on contracts 5,221 4,599 Accrued taxes 1,126 1,454 ------- ------- Current liabilities 24,392 21,353 Long-term borrowings 0 0 Deferred U.S. income taxes 2,619 1,430 Other accrued liabilities 2,883 2,883 ------- ------- 29,894 25,666 ======= ======= SHAREHOLDERS' EQUITY - -------------------- Preferred stock 15 15 Common stock 5,617 5,617 Retained earnings 46,283 46,981 Translation adjustment 126 63 ------- ------- 52,041 52,676 ------- ------- $81,935 $78,342 ======= ======= The accompanying notes are an integral part of the consolidated financial statements.
-2- 3 THE MONARCH MACHINE TOOL COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME For the three months ended March 31, 1995 and 1994 (In thousands of dollars, except per share amounts)
1995 1994 --------- --------- Unaudited Unaudited Net sales $22,203 $18,406 Operating costs and expenses: Cost of sales 19,853 16,163 Selling and administrative 3,124 2,572 Interest expense 132 83 Other expense (income) (37) (130) ------- ------- 23,072 18,688 (869) (282) Gain on discontinuance of operation of foreign subsidiary -- -- ------- ------- Income (loss) before income taxes (869) (282) ------- ------- Income taxes (364) (46) ------- ------- Net income (loss) $ (505) $ (236) ======= ======= Earnings per common share: $ (.13) $ (.06) ======= ======= Dividends per share Preferred $ .45 $ .45 Common $ .05 $ .05 The accompanying notes are an integral part of the consolidated financial statements.
-3- 4 THE MONARCH MACHINE TOOL COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS For the three months ended March 31, 1995 and 1994 (All money amounts stated in thousands of dollars)
1995 1994 --------- --------- Unaudited Unaudited Cash flows from operating activities: Net income (loss) $ (505) $ (236) Adjustments to reconcile net income (loss) to net cash provided by operations: Depreciation 416 370 Pension Income 32 (89) Gain on discontinuance of operation of foreign subsidiary -- -- Cash provided by (used for) current assets and liabilities: Accounts receivable 2,698 (74) Inventories (2,164) (2,253) Other assets (1,913) (807) Accounts payable 2,809 5,085 Accrued liabilities 1,072 189 Advance payments on contracts 621 (727) Accrued income taxes (274) (286) ------- ------- Total adjustments 3,297 1,408 ------- ------- Net cash provided by (used in) operating activities 2,792 1,172 Cash flows from investing activities: Capital expenditures (77) (227) ------- ------- Cash flows from financing activities: Dividends paid (194) (194) Proceeds from (repayments of) short-term borrowings 0 1,000 ------- ------- Effect of exchange rates on cash (1) 30 ------- ------- Net increase in cash 2,520 1,781 Cash and cash equivalents at beginning of period 30 1,556 ------- ------- Cash and cash equivalents at end of period $ 2,550 $ 3,337 ======= ======= The accompanying notes are an integral part of the consolidated financial statements.
-4- 5 THE MONARCH MACHINE TOOL COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the three months ended March 31, 1995 and 1994 The foregoing consolidated results of operations are unaudited, but in the opinion of the company all adjustments (consisting of normal recurring accruals as well as the accounting changes) necessary to present fairly the results for these periods have been included. NET INCOME PER COMMON SHARE: Net income per common share, is based upon the weighted average number of common shares outstanding and common share equivalents, after giving effect to the preferred share dividend requirement. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's latest annual report and any current year's previously filed Forms 10-Q. -5- 6 THE MONARCH MACHINE TOOL COMPANY AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS For the three months ended March 31, 1995 and 1994 RESULTS OF OPERATIONS New order bookings for the entire corporation throughout the first three months of 1995 were up approximately 3% relative to the level experienced during the same period last year. The improving new order rate of the past several quarters has been experienced at most of our operations, but have been greatest at our strip processing operations. The resulting level of backlogs at the end of the first quarter of 1995 was $53.7 million as compared to $49.6 million at 12/31/94 and $28.9 million at 3/31/94. Net sales for the first quarter of 1995 were $22.2 million as compared to $18.4 million for the same period in 1994. The increase in net sales in the first three months of this year was principally due to higher backlogs at the beginning of the period. The beginning backlogs were higher at most of our operations, but were up the most, relative to last year, at our strip processing operations. Operations during the first quarter of 1995 produced a net loss of $.13 per share as compared to a net loss of $.06 per share during the same period in 1994. Although rising backlog levels have begun to increase net sales, earnings have not kept pace with the increase in net sales. The principal reasons for the larger loss this quarter relative to the same period last year were much lower backlogs at our lathe manufacturing facility which resulted in greater over-capacity inefficiencies at this operation, as well as the costs of developing our Stamco-Depiereux operation which was established in June of last year. The increased operating loss this year, relative to last year, also reflects generally increasing costs that we have not been able to pass off to the customer due to unrelenting severe price competition from both domestic and foreign builders of similar products. The Company, however, continues to implement a company-wide effort to control costs particularly with respect to the largest and fastest growing areas of costs such as health care, travel and product liability insurance. Our efforts at cost containment are evidenced by the fact that selling and general and administrative expenses expressed as a percentage of sales have averaged around 14%, during the past two years, despite the fact that net sales have been depressed during these periods. Cost of sales as a percentage of sales went up to approximately 89% during the three months of 1995 as compared to 88% during the same period last year. -6- 7 THE MONARCH MACHINE TOOL COMPANY AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS For the three months ended March 31, 1995 and 1994 RESULTS OF OPERATIONS (continued) The lower margins incurred in recent quarters were due to the factors noted above particularly the excess-capacity situation at some of our operations. Due to the high engineering content of our products it is not practical or desirable to radically adjust these costs to cyclical changes in the marketplace for our equipment. Earnings continue to be strongest at our strip processing operations due to reasonable plant capacity utilization, and remain poorest at our turning operations because of considerable excess capacity. During the past several years the Company has been divesting of and reorganizing underperforming operations and will continue to pursue this course of action. The Company is also continually evaluating new opportunities worldwide, with the intent of diversifying into related businesses to reduce our reliance on any one market. The company is currently pursuing just such an opportunity in Germany. LIQUIDITY AND CAPITAL RESOURCES The Company maintained a strong financial position throughout the past year and has current assets of $2.12 for each dollar of current liabilities at 3/31/95 as compared to the same amount of $2.12 at 3/31/94. The Company presently has no long-term debt. The Company has unsecured lines of credit aggregating $25,500,000, including a $13,000,000 committed three year revolving loan with a three year term-out option. Short-term borrowings against these facilities at 3/31/95 were $7 million compared to $9 million at the end of the first three months last year. Management is currently negotiating the renewal of these agreements. -7- 8 PART II - OTHER INFORMATION Item 6 - Exhibits and Reports on Form 8-K Exhibit 27 - Financial Data Schedule No reports on Form 8-K were filed during the three month period ending March 31, 1995. -8- 9 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this quarterly report to be signed on its behalf by the undersigned thereunto duly authorized. THE MONARCH MACHINE TOOL COMPANY Date 5/8/95 By /s/ Robert Reithman ------------------------------ ----------------------------- Robert Riethman, Treasurer Date 5/8/95 By /s/ Earl Hull ------------------------------ ----------------------------- Earl Hull, Corporate Secretary -9- EX-27 2 MONARCH MACHINE EX-27
5 1,000 3-MOS DEC-31-1995 JAN-01-1995 MAR-31-1995 2,550 0 20,700 0 22,351 51,718 17,034 416 81,935 24,392 0 5,617 0 15 46,409 81,935 22,203 22,203 19,853 22,977 37 313 132 (869) (364) (505) 0 0 0 (505) (.13) (.13)
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