-----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, LQFUA6SorNvyZfr5IpNJfYptSRe7CDtEEoV20E3+Xzf5h6URLW4H1euCIgWk5FF/ DZIZloC2mhqWXSWNFkFO7g== 0000950135-96-002866.txt : 19960701 0000950135-96-002866.hdr.sgml : 19960701 ACCESSION NUMBER: 0000950135-96-002866 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960628 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: NASHUA CORP CENTRAL INDEX KEY: 0000069680 STANDARD INDUSTRIAL CLASSIFICATION: CONVERTED PAPER & PAPERBOARD PRODS (NO CONTAINERS/BOXES) [2670] IRS NUMBER: 020170100 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-05492 FILM NUMBER: 96588589 BUSINESS ADDRESS: STREET 1: 44 FRANKLIN ST STREET 2: PO BOX 2002 CITY: NASHUA STATE: NH ZIP: 03061-2002 BUSINESS PHONE: 6038802323 MAIL ADDRESS: STREET 1: 44 FRANKLIN STREET STREET 2: P O BOX 2002 CITY: NASHUA STATE: NH ZIP: 03061-2002 11-K 1 NASHUA CORPORATION FORM 11-K 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 11-K FOR ANNUAL REPORTS OF EMPLOYEE STOCK PURCHASE SAVINGS AND SIMILAR PLANS PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Mark One) (X) ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED) For the fiscal year ended December 31, 1995. ----------------- OR ( ) TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED) For the transition period from ________ to ________. Commission File Number 1-5492-1 -------- A. Full title of the plan and the address of the plan, if different from that of the issuer named below: Nashua Corporation Employees' Savings Plan B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: Nashua Corporation 44 Franklin Street Nashua, New Hampshire 03060 2 NASHUA CORPORATION - ------------------ EMPLOYEES' SAVINGS PLAN - ----------------------- FINANCIAL STATEMENTS - -------------------- DECEMBER 31, 1995 AND 1994 - -------------------------- 3 NASHUA CORPORATION ------------------ EMPLOYEES' SAVINGS PLAN ----------------------- INDEX TO FINANCIAL STATEMENTS ----------------------------- PAGES ----- Financial Statements: Report of Independent Accountants 1-2 Statement of Net Assets Available for Plan Benefits (with Fund Information) as of December 31, 1995 and 1994 3-4 Statement of Changes in Net Assets Available for Plan Benefits (with Fund Information) for the Year Ended December 31, 1995 and 1994 5-6 Notes to Financial Statements 7-11 Supplementary Information: * * Schedules required by Section 2520.103-10 of the Department of Labor's Rules and Regulations for Reporting and Disclosure under ERISA have been omitted because they are not applicable. 4 160 Federal Street Telephone 617 439-4390 Boston, MA 02110 Price Waterhouse LLP REPORT OF INDEPENDENT ACCOUNTANTS June 25, 1996 To the Participants and Administrator of the Nashua Corporation Employees' Savings Plan In our opinion, the accompanying statements of net assets available for plan benefits and the related statements of changes in net assets available for plan benefits present fairly, in all material respects, the net assets available for plan benefits of the Nashua Corporation Employees' Savings Plan (the "Plan") at December 31, 1995 and 1994, and the changes in net assets available for plan benefits for the years then ended, in conformity with generally accepted accounting principles. These financial statements are the responsibility of the Plan's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above. -1- 5 To the Participants and Administrator of the Nashua Corporation Employee's Savings Plan Page 2 June 25, 1996 Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The Fund Information in the statements of net assets available for plan benefits and the statements of changes in net assets available for plan benefits is presented for purposes of additional analysis rather than to present the net assets available for plan benefits and changes in net assets available for plan benefits of each fund. The Fund Information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. /s/ Price Waterhouse LLP - ------------------------ -2- 6 NASHUA CORPORATION EMPLOYEES' SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS (WITH FUND INFORMATION) DECEMBER 31, 1995
Guaranteed Nashua Investment Common Equity- Growth Contract Stock Puritan Magellan Income Company Fund Fund Fund Fund Contrafund Fund Fund ---- ---- ---- ---- ---------- ---- ---- Assets: Guaranteed Investment Contracts, at Contract Value $ 9,334,884 $ -- $ -- $ -- $ -- $ -- $ -- Investments at Fair Value: Nashua Common Stock Fund -- 3,985,978 -- -- -- -- -- Mutual Funds -- -- 5,975,783 14,947,653 631,425 3,426,955 4,263,377 Collective Investment Fund 10,188,914 -- -- -- -- -- -- Cash 529,740 -- -- -- -- -- -- Employee Contributions Receivable 100,680 4,349 32,877 89,745 5,639 19,495 26,827 Employer Contributions Receivable 9,634 52,822 6,709 19,301 1,661 3,915 6,840 Participant Loan Receivable, at Fair Value -- -- -- -- -- -- -- ------------------------------------------------------------------------------------ Net Assets Available for Plan Benefits $20,163,662 $4,043,149 $6,015,369 $15,056,699 $638,725 $3,450,365 $4,297,044 ==================================================================================== Asset Pacific Intermediate Small Cap Gov't Money U.S. Equity Manager Europe Basin Bond Stock Market Index Fund Fund Fund Fund Fund Fund Fund ---- ---- ---- ---- ---- ---- ---- Assets: Guaranteed Investment Contracts, at Contract Value $ -- $ -- $ -- $ -- $ -- $ -- $ -- Investments at Fair Value: Nashua Common Stock Fund -- -- -- -- -- -- -- Mutual Funds 856,355 763,616 847,247 111,809 375,688 913,529 273,290 Collective Investment Fund -- -- -- -- -- -- -- Cash -- -- -- -- -- -- -- Employee Contributions Receivable 6,018 5,179 7,257 2,113 3,567 6,305 1,548 Employer Contributions Receivable 1,521 1,737 1,881 740 1,131 1,685 515 Participant Loan Receivable, at Fair Value -- -- -- -- -- -- -- ------------------------------------------------------------------------------- Net Assets Available for Plan Benefits $863,894 $770,532 $856,385 $114,662 $380,386 $921,519 $275,353 =============================================================================== Loan Fund Total ---- ----- Assets: Guaranteed Investment Contracts, at Contract Value $ -- $ 9,334,864 Investments at Fair Value: Nashua Common Stock Fund -- 3,985,978 Mutual Funds -- 33,386,727 Collective Investment Fund -- 10,188,714 Cash -- 529,770 Employee Contributions Receivable -- 311,599 Employer Contributions Receivable -- 110,092 Participant Loan Receivable, at Fair Value 2,605,851 2,605,851 ------------------------- Net Assets Available for Plan Benefits $2,605,851 $60,453,595 =========================
See accompanying notes to financial statements. -3- 7 NASHUA CORPORATION EMPLOYEES' SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS (WITH FUND INFORMATION) DECEMBER 31, 1994 Guaranteed Nashua Investment Common Contract Stock Puritan Magellan Fund Fund Fund Fund ---- ---- ---- ---- Assets: Guaranteed Investment Contracts, at Contract Value $21,470,787 $ -- $ -- $ -- Investments at Fair Value: Nashua Common Stock Fund -- 5,486,006 -- -- Mutual Funds -- -- 4,373,943 9,961,536 Employee Contributions Receivable 142,951 5,046 42,219 98,481 Employer Contributions Receivable 10,603 79,958 7,862 16,152 Participant Loans Receivable, at Fair Value -- -- -- -- -------------------------------------------------------------------- Net Assets Available for Plan Benefits $21,624,341 $5,571,010 $4,424,024 $10,076,169 ====================================================================
Equity Growth Asset Income Company Manager Europe Fund Fund Fund Fund ---- ---- ---- ---- Assets: Guaranteed Investment Contracts, at Contract Value $ -- $ -- $ -- $ -- Investments at Fair Value: Nashua Common Stock Fund -- -- -- -- Mutual Funds 2,196,982 2,497,119 667,490 599,123 Employee Contributions Receivable 21,787 31,239 8,875 5,952 Employer Contributions Receivable 3,410 6,701 2,153 2,048 Participant Loans Receivable, at Fair Value -- -- -- -- ---------------------------------------------------------------- Net Assets Available for Plan Benefits $2,222,179 $2,535,059 $678,518 $607,123 ================================================================ Pacific Intermediate Gov't Money Basin Bond Market Loan Fund Fund Fund Fund Total ---- ---- ---- ---- ----- Assets: Guaranteed Investment Contracts, at Contract Value $ -- $ -- $ -- $ -- $21,470,787 Investments at Fair Value: Nashua Common Stock Fund -- -- -- -- 5,486,006 Mutual Funds 1,075,135 58,952 1,440,948 -- 22,871,228 Employee Contributions Receivable 11,882 1,557 10,445 -- 380,434 Employer Contributions Receivable 3,192 518 1,940 -- 134,537 Participant Loans Receivable, at Fair Value -- -- -- 2,170,276 2,170,276 ----------------------------------------------------------------------------------- Net Assets Available for Plan Benefits $1,090,209 $61,027 $1,453,333 $2,170,276 $52,513,268 ===================================================================================
See accompanying notes to financial statements. -4- 8 NASHUA CORPORATION EMPLOYEES' SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS (WITH FUND INFORMATION) YEAR ENDED DECEMBER 31, 1995
Guaranteed Nashua Investment Common Equity- Growth Asset Contract Stock Puritan Magellan Income Company Manager Fund Fund Fund Fund Contrafund Fund Fund Fund --------- ------ ------- -------- ---------- ------ ------- ------- Sources of Net Assets: Employee Contributions $ 1,492,410 $ 57,188 $ 472,545 $ 1,171,421 $ 51,839 $ 261,841 $ 395,285 $ 98,690 Employer Contributions 126,481 798,190 98,862 214,818 10,119 49,592 84,834 22,706 Investment Income 1,016,170 -- 303,800 864,095 48,284 188,657 195,160 24,551 Net Appreciation of Investments -- -- 696,417 2,913,261 18,542 555,040 896,167 111,946 Loan Repayments 260,658 2,949 61,644 218,688 6,334 38,866 60,100 6,880 Loan Interest 64,524 1,676 19,002 55,958 480 9,884 15,287 1,554 --------------------------------------------------------------------------------------------- 2,960,243 860,003 1,652,270 5,438,241 135,598 1,103,880 1,646,833 266,327 --------------------------------------------------------------------------------------------- Applications of Net Assets: Plan Withdrawals 2,180,283 296,123 299,922 665,065 3,290 126,491 164,238 12,758 Net Depreciation of Investments 53,459 1,699,096 -- -- -- -- -- -- Loan Withdrawals 513,010 23,915 123,744 412,954 12,796 67,453 120,794 5,336 Administrative Expenses 19,786 684 2,150 2,498 8 869 973 396 --------------------------------------------------------------------------------------------- 2,766,538 2,019,818 425,816 1,080,517 16,094 194,813 286,005 18,490 --------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets During the Year 193,705 (1,159,815) 1,226,454 4,357,724 119,504 909,067 1,360,828 247,837 Net Transfers Between Funds (1,654,384) (368,046) 364,891 622,806 519,221 319,119 401,157 (62,461) Net Assets Available for Plan Benefits: Beginning of Year 21,624,341 5,571,010 4,424,024 10,076,169 -- 2,222,179 2,535,059 678,518 --------------------------------------------------------------------------------------------- End of Year $20,163,662 $ 4,043,149 $6,015,369 $15,056,699 $638,725 $3,450,365 $4,297,044 $863,894 =============================================================================================
Pacific Intermediate Small Cap Gov't Money U.S. Equity Europe Basin Bond Stock Market Index Loan Fund Fund Fund Fund Fund Fund Fund Total ------ ------ ----------- -------- ---------- ---------- ---- ----- Sources of Net Assets: Employee Contributions $ 69,764 $ 141,834 $ 29,461 $ 33,140 $ 92,253 $ 18,105 $ -- $ 4,385,776 Employer Contributions 26,594 32,046 6,982 7,858 27,586 6,074 -- 1,512,742 Investment Income 29,552 -- 4,351 22,150 53,897 4,671 -- 2,755,338 Net Appreciation of Investments 89,597 -- 3,826 -- -- 31,675 -- 5,316,471 Loan Repayments 9,923 8,505 396 1,712 11,881 353 (688,889) -- Loan Interest 2,896 2,298 74 371 2,752 49 -- 176,805 -------------------------------------------------------------------------------------------- 228,326 184,683 45,090 65,231 188,369 60,927 (688,889) 14,147,132 -------------------------------------------------------------------------------------------- Applications of Net Assets: Plan Withdrawals 49,522 42,191 38,446 -- 248,296 269 209,936 4,336,830 Net Depreciation of Investments -- 70,150 -- 18,038 -- -- -- 1,840,743 Loan Withdrawals 18,158 18,359 3,730 2,144 10,374 1,633 (1,334,400) -- Administrative Expenses 106 176 75 10 1,462 39 -- 29,232 -------------------------------------------------------------------------------------------- 67,786 130,876 42,251 20,192 260,132 1,941 (1,124,464) 6,206,805 -------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets During the Year 160,540 53,807 2,839 45,039 (71,763) 58,986 435,575 7,940,327 Net Transfers Between Funds 2,869 (287,631) 50,796 335,347 (460,051) 216,367 -- -- Net Assets Available for Plan Benefits: Beginning of Year 607,123 1,090,209 61,027 -- 1,453,333 -- 2,170,276 52,513,268 -------------------------------------------------------------------------------------------- End of Year $770,532 $ 856,385 $114,662 $380,386 $ 921,519 $275,353 $ 2,605,851 $60,453,595 ============================================================================================
See accompanying notes to financial statements -5- 9 NASHUA CORPORATION EMPLOYEES' SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS (WITH FUND INFORMATION) YEAR ENDED DECEMBER 31, 1994
Guaranteed Nashua Investment Common Equity- Growth Asset Contract Stock Puritan Magellan Income Company Manager Fund Fund Fund Fund Fund Fund Fund --------- ----- ------- -------- ------- ------- ------- Sources of Net Assets: Employee Contributions $ 1,983,714 $ 57,707 $ 490,666 $ 1,341,030 $ 285,904 $ 412,333 $237,350 Employer Contributions 135,294 1,067,079 95,157 205,334 44,432 88,843 31,005 Investment Income 1,345,675 -- 329,088 389,252 210,099 101,994 25,004 Net Appreciation of Investments -- -- -- -- -- -- -- Loan Repayments 293,541 2,159 43,521 150,901 25,588 29,968 8,429 Loan Interest 60,954 1,380 14,122 41,648 7,883 8,960 2,132 ---------------------------------------------------------------------------------- 3,819,178 1,128,325 972,554 2,128,165 573,906 642,098 303,920 ---------------------------------------------------------------------------------- Applications of Net Assets: Plan Withdrawals 2,443,755 485,546 648,977 672,290 207,215 208,990 150,464 Net Depreciation of Investments -- 1,487,383 268,576 606,368 203,629 158,788 74,210 Loan Withdrawals 760,391 6,708 121,366 392,440 70,181 64,469 11,328 Administrative Expenses 7,097 3,782 755 2,720 492 470 132 Plan Transfer (Note 6) 451,069 182,085 204,107 605,623 127,282 172,213 19,160 ---------------------------------------------------------------------------------- 3,662,312 2,165,504 1,243,781 2,279,441 608,799 604,930 255,294 ---------------------------------------------------------------------------------- Increase (Decrease) in Net Assets During the Year 156,866 (1,037,179) (271,227) (151,276) (34,893) 37,168 48,626 Net Transfers Between Funds (1,848,895) (691,128) 674,622 169,784 109,450 (32,813) 13,285 Net Assets Available for Plan Benefits: Beginning of Year 23,316,370 7,299,317 4,020,629 10,057,661 2,147,622 2,530,704 616,607 ---------------------------------------------------------------------------------- End of Year $21,624,341 $ 5,571,010 $ 4,424,024 $10,076,169 $2,222,179 $2,535,059 $678,518 ==================================================================================
Pacific Intermediate Gov't Money Europe Basin Bond Market Loan Fund Fund Fund Fund Fund Total ------ ------ ----------- ---------- ---- ----- Sources of Net Assets: Employee Contributions $ 78,035 $ 135,910 $10,812 $ 93,865 $ -- $ 5,127,326 Employer Contributions 21,002 34,543 3,353 19,198 -- 1,745,240 Investment Income 8,020 117,974 2,037 40,082 -- 2,569,225 Net Appreciation of Investments 12,194 -- -- -- -- 12,194 Loan Repayments 7,123 7,059 1,820 4,573 (574,682) -- Loan Interest 2,086 1,708 12 688 -- 141,573 ----------------------------------------------------------------------------- 128,460 297,194 18,034 158,406 (574,682) 9,595,558 ----------------------------------------------------------------------------- Applications of Net Assets: Plan Withdrawals 10,244 27,040 1,884 38,188 108,312 5,002,905 Net Depreciation of Investments -- 172,032 2,409 -- -- 2,973,395 Loan Withdrawals 13,498 23,818 -- 10,301 (1,474,500) -- Administrative Expenses 116 127 10 140 -- 15,841 Plan Transfer (Note 6) 25,599 59,892 1,027 (14,289) 185,143 2,018,911 ----------------------------------------------------------------------------- 49,457 282,909 5,330 34,340 (1,181,045) 10,011,052 ----------------------------------------------------------------------------- Increase (Decrease) in Net Assets During the Year 79,003 14,285 12,704 124,066 606,363 (415,494) Net Transfers Between Funds 204,108 265,196 20,458 1,115,933 -- -- Net Assets Available for Plan Benefits: Beginning of Year 324,012 810,728 27,865 213,334 1,563,913 52,928,762 ---------------------------------------------------------------------------- End of Year $607,123 $1,090,209 $61,027 $1,453,333 $ 2,170,276 $52,513,268 =============================================================================
See accompanying notes to financial statements -6- 10 NASHUA CORPORATION ------------------ EMPLOYEES' SAVINGS PLAN ----------------------- NOTES TO FINANCIAL STATEMENTS ----------------------------- NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - --------------------------------------------------- Basis of Accounting - ------------------- The financial statements of the Nashua Corporation Employees' Savings Plan ("the Plan") are presented on the accrual basis of accounting. Asset Maintenance - ----------------- Fidelity Management Trust Company is the Plan trustee ("the Trustee"). Assets of the Plan are invested, at the election of the participants, in up to twelve Fidelity Investments' mutual funds (Fidelity Magellan Fund, Fidelity Puritan Fund, Fidelity Equity-Income Fund, Fidelity Growth Company Fund, Fidelity Pacific Basin Fund, Fidelity Europe Fund, Fidelity Asset Manager Fund, Fidelity Intermediate Bond Fund, Fidelity Small Cap Stock Fund, Fidelity Contrafund, Fidelity U.S. Equity Index Fund, or Fidelity Retirement Government Money Market Fund), a Guaranteed Investment Contract Fund managed by the Trustee, or the Nashua Common Stock Fund. The Fidelity Small Cap Stock Fund, Fidelity Contrafund and Fidelity U.S. Equity Index Fund were new investment options in 1995. The Plan's assets are commingled with assets of the Nashua Corporation Savings Plan for Specified Hourly Employees in a participant-directed master trust arrangement. The Plan's participation in the net assets of the master trust is recorded based on individual Plan participants' account balances. Investment income and expenses for each investment option are allocated to the individual participant account balances based on the prorata beginning account balances less withdrawals and loans made to participants. Investment Valuation - -------------------- Common shares of Nashua Corporation ("the Company") held in the Plan are valued at closing sales prices supplied by a pricing service. The Plan's guaranteed investment contracts are valued at contract value which approximates fair value. Contract value represents contributions made under the contracts, plus interest earned, less funds used to pay withdrawals and expenses. The Plan's mutual fund and collective investment fund accounts are valued at the respective funds' closing net asset values. Investment transactions are recorded on the trade date. Participant loans are valued at cost plus accrued interest which approximates fair value. Cost is determined on an average cost basis. Contributions - ------------- The Plan has certain established criteria for eligibility. All contributions are immediately 100% vested. 401(k) Plan contributions - Employees may make a basic contribution of up to 15% of their earnings to the Plan. The Company contributes an amount equal to 50% of up to 6% of the employees' contributed earnings. Contributions are subject to certain limitations. Employees can direct their contributions and the Company matching contribution into any of the investment funds available for their contributions. Employees' contributions into the Nashua Common Stock Fund are limited to 25% of their account balance. Voluntary Plan contributions - Employees may elect to contribute from 1% to 10% of their annual earnings to the Plan on an after-tax basis. -7- 11 Withdrawals and Loans - --------------------- Plan participants may withdraw part or all of their account balances subject to certain restrictions stipulated by current Internal Revenue Service regulations. The Plan also provides for optional forms of withdrawal at the time of retirement. Plan participants may borrow against individual Plan balances subject to Plan and current Internal Revenue Service regulations. Interest on the loans is payable at 2% above the prime rate. Loans are payable within 5 years from the date of withdrawal unless the amount was withdrawn to purchase a primary residence, in which case the term of the loan is 20 years. At December 31, 1995 and 1994, there were 705 and 598 loans outstanding totalling 2,605,851 and $2,170,276, respectively. Expenses - -------- Trustee administrative fees, audit and other expenses are paid directly by the Company and, accordingly, such items are not reflected in the financial statements of the Plan. Fees for participant loans are paid by the Plan and are reflected in the accompanying financial statements as administrative expenses. Use of Estimates - ---------------- The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. Investment Income - ----------------- Income from investments is recorded as earned on an accrual basis. Federal Income Tax Status - ------------------------- The Company was advised by the U.S. Treasury Department in October 25, 1994 that the Plan is qualified under Section 401 of the Internal Revenue Code ("the Code") and is therefore exempt from federal income taxes. The Plan has subsequently been amended. A new determination letter has not yet been requested. Management believes that the Plan, as amended, and its operations, have been and continue to be in accordance with all applicable provisions of the Code and the Employee Retirement Income Security Act of 1974 ("ERISA"). NOTE 2 - GENERAL DESCRIPTION OF THE PLAN - ---------------------------------------- The following brief description of the Plan is provided for general information purposes only. Participants should refer to the Plan agreement for more complete information. 1. GENERAL - The Plan is a defined contribution plan covering all eligible employees. It is subject to the provisions of ERISA. 2. TERMINATION - The Plan is administered by the Nashua Pension Committee, which is composed of officers of the Company. The Company anticipates and believes that the Plan will continue without interruption, but reserves the right to discontinue the Plan. In the event that such discontinuance results in the termination of the Plan, the Plan provides that net assets shall be allocated among the participants. -8- 12 NOTE 3 - INVESTMENTS - -------------------- The Plan's investments, excluding the Guaranteed Investment Contract Fund, are summarized as follows:
December 31, ------------------------------------ 1995 1994 ----------- ----------- Nashua Common Stock Fund $ 3,985,978 $ 5,486,006 Fidelity Puritan Fund 5,975,783 4,373,943 Fidelity Magellan Fund 14,947,653 9,961,536 Fidelity Contrafund 631,425 -- Fidelity Equity-Income Fund 3,426,955 2,196,982 Fidelity Growth Company Fund 4,263,377 2,497,119 Fidelity Asset Manager Fund 856,355 667,490 Fidelity Europe Fund 763,616 599,123 Fidelity Pacific Basin Fund 847,247 1,075,135 Fidelity Intermediate Bond Fund 111,809 58,952 Fidelity Small Cap Stock Fund 375,688 -- Fidelity Retirement Government Money Market Fund 913,529 1,440,948 Fidelity U.S. Equity Index Fund 273,290 -- ----------- ----------- $37,372,705 $28,357,234 =========== ===========
NOTE 4 - GUARANTEED INVESTMENT CONTRACT FUND - -------------------------------------------- The Plan's investment in the Guaranteed Investment Contract Fund consists of the following:
December 31, ------------------------------------ 1995 1994 ----------- ----------- State Mutual Life Assurance Company 5.48% Due 1/1/98 - 1/3/99 $ 937,376 $ 2,102,350 Life of Virginia 8.32% Due 5/31/97 1,002,636 5,615,493 Aetna Life Insurance Company 6.78% Due 6/30/95 -- 992,627 Lincoln National Life Insurance Company 6.28% Due 12/31/96 1,457,493 2,250,872 Provident Life & Accident Insurance Company 6.14% Due 1/29/99 -- 2,263,667 Pacific Mutual Life Insurance Company 5.30% Due 3/30/99 - 6/30/99 947,515 2,001,629 People's Security Life 5.52% Due 2/28/00 1,458,182 2,101,735 People's Security Life 5.41% Due 2/28/00 525,739 700,578 Confederation Life Insurance Company 8.77% Due 1/3/95 3,005,923 3,005,923 Fidelity Institutional Money Market Fund -- 435,913 Fidelity Managed Income Portfolio II 10,188,714 -- Cash 529,770 -- ----------- ----------- $20,053,348 $21,470,787 =========== ===========
The issuing institutions ability to meet its contractual obligation under the respective contracts may be affected by future economic and regulatory developments in the insurance industry. On August 12, 1994, Canadian regulators seized control of Confederation Life Insurance Company. As a result, the value of the Plan's investment in that carrier's contract has been frozen until regulators finalize a rehabilitation plan. Interest accrual ceased on August 12, 1994. While the rehabilitation proceedings are still pending, realization of the Plan's investment thereon cannot be presently determined. Accordingly, no provision for any loss that may result upon final resolution of these matters has been made in the accompanying financial statements. -9- 13 NOTE 5 - SAVINGS PLANS MASTER TRUST - ----------------------------------- The assets of the Plan have been commingled with assets of another Company savings plan in the Nashua Corporation Savings Plans Master Trust ("the Master Trust"). The Plan administrator adjusted the financial data as confirmed on a cash basis by the Trustee to the accrual basis on which the information shown below is prepared. The effect of converting to the accrual basis was to record accrued employer and employee contributions receivable. The Plan owned approximately 99.8% of the Master Trust at December 31, 1995 and 1994.
December 31, -------------------------------- 1995 1994 ------------ ----------- Statement of Net Assets Available for Plan Benefits: Guaranteed Investment Contracts, at Contract Value $ 9,368,121 $21,533,934 Nashua Common Stock Fund, at Fair Value 3,995,146 5,499,016 Mutual Funds, at Fair Value 33,446,659 22,912,974 Collective Investment Fund, at Fair Value 10,229,676 -- Cash 531,900 -- Employee Contributions Receivable 312,251 383,267 Employer Contributions Receivable 110,343 135,626 Participant Loans Receivable, at Fair Value 2,608,847 2,173,276 ----------- ----------- Net Assets Available for Plan Benefits $60,602,943 $52,638,093 =========== =========== December 31, -------------------------------- 1995 1994 ------------ ----------- Statement of Changes in Net Assets Available for Plan Benefits: Sources of Net Assets: Employee Contributions $ 4,406,498 $ 5,271,617 Employer Contributions 1,520,574 1,797,983 Investment Income 2,762,262 2,608,247 Net Appreciation of Investments 5,328,978 25,762 Loan Interest 176,825 145,301 ------------ ------------ 14,195,137 9,848,910 ----------- ------------ Application of Net Assets: Plan Withdrawals 4,355,061 5,037,619 Net Depreciation of Investment 1,845,582 2,979,570 Administrative Expenses 29,644 17,134 Plan Transfer -- 3,233,311 ------------ ------------ 6,230,287 11,267,634 ------------ ------------ Increase (Decrease) in Net Assets During the Year $ 7,964,850 $ (1,418,724) ============ =============
The Master Trust purchased 36,300 and 55,800 common shares of Nashua Corporation at a total cost of $617,519 and $1,414,510 during 1995 and 1994, respectively. The Master Trust received $222,104 and $1,483,342 from the sale of 13,200 and 53,762 common shares of Nashua Corporation during 1995 and 1994, respectively. -10- 14 NOTE 6 - PLAN TRANSFER - ---------------------- On May 25, 1994 the Company's Santa Clara facility was sold. The participants of the Plan who were employees of the Santa Clara facility were transferred into a plan established by the buyer. The transfer occurred during the third quarter of 1994 and resulted in a plan transfer of $2,018,911. NOTE 7 - SUBSEQUENT EVENTS - -------------------------- Nashua Corporation's Watervliet facility was sold and the Champaign facility was spun off through an initial public offering on May 20 and May 24 of 1996, respectively. At December 31, 1995 participants of the Watervliet and Champaign facilities had assets of $7,689,843 and $991,260, respectively. As of the respective sale dates, the participants have the option to take a distribution from the Plan or rollover into another qualified plan. NOTE 8 - IMPLEMENTATION OF STATEMENT OF POSITION 94-4 - ----------------------------------------------------- In September 1994, the American Institute of Certified Public Accountants ("AICPA") issued Statement of Position 94-4 "Reporting of Investment Contracts Held by Health and Welfare Benefit Plans and Defined Contribution Pension Plans" (the "SOP") which amends the AICPA Audit and Accounting Guide - Audits of Employee Benefit Plans. The SOP is effective for financial statements for years beginning after December 15, 1994, except that the application of the SOP to investment contracts entered into before December 31, 1993, is delayed to years beginning after December 15, 1995. The SOP will be implimented during the year ended December 31, 1996 for the Plan. The SOP requires defined contribution plans to report investment contracts with fully benefit-responsive features, as defined in the SOP, at contract value and other investment contracts at fair value. Management does not believe the implementation of the SOP will have a material effect on the financial statements. -11- 15 CONSENT OF INDEPENDENT ACCOUNTANTS We hereby consent to the incorporation by reference in the Registration Statement on Form S-8 of Nashua Corporation of our report dated June 25, 1996 relating to the financial statements of the Nashua Corporation Employees' Savings Plan for the year ended December 31, 1995 included with this Form 11-K. We also consent to the incorporation by reference in the Registration Statement on Form S-8 of Nashua Corporation of our report dated June 25, 1996 relating to the financial statements of the Nashua Corporation Employees' Savings Plan for Specified Hourly Employees for the year ended December 31, 1995 included with this Form 11-K. /s/ Price Waterhouse LLP - ---------------------------- PRICE WATERHOUSE LLP Boston, Massachusetts June 27, 1996 16 SIGNATURE NASHUA CORPORATION EMPLOYEES' SAVINGS PLAN. Pursuant to the requirements of the Securities Act of 1934, the Plan Committee has duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized. NASHUA CORPORATION EMPLOYEES' SAVINGS PLAN Date: June 28, 1996 By /s/ Paul Buffum --------------------------------- Paul Buffum Nashua Corporation Employees' Savings Plan Committee -----END PRIVACY-ENHANCED MESSAGE-----