-----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, DoSl/TUllugVKQn8VmnSuRgiz8K/RtzTqsrSKUL5o8b7NdfTHGTPA7H3sKMFW3o0 OGjFzzRo2EsV3kslNphj7Q== 0000950135-99-003514.txt : 19990716 0000950135-99-003514.hdr.sgml : 19990716 ACCESSION NUMBER: 0000950135-99-003514 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990715 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: SEC FILE NUMBER: 001-05492 FILM NUMBER: 99664624 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 EMPLOYEES' SAVINGS PLAN 1 SECURITIES AND EXCHANGE COMMISSION Washington, DC 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 For the fiscal year ended December 31, 1998. ------------------ 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 AND SUPPLEMENTARY INFORMATION DECEMBER 31, 1998 AND 1997 3 NASHUA CORPORATION EMPLOYEES' SAVINGS PLAN INDEX TO FINANCIAL STATEMENTS
PAGES ----- Financial Statements: Report of Independent Accountants 1 Statement of Net Assets Available for Plan Benefits (with Fund Information) as of December 31, 1998 and 1997 2-3 Statement of Changes in Net Assets Available for Plan Benefits (with Fund Information) for the Years Ended December 31, 1998 and 1997 4-5 Notes to Financial Statements 6-10 Supplementary Information:* Schedule of Assets Held for Investment Purposes as of December 31, 1998 11 Schedule of Loans or Fixed Income Obligations as of December 31, 1998 12 Schedule of Reportable Transactions for the Year Ended December 31, 1998 13
* Other 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 REPORT OF INDEPENDENT ACCOUNTANTS 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, 1998 and 1997, 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. As further described in Note 6, on July 1, 1998, the Plan transferred assets totaling $6,538,012 to the York Photo Labs Savings Plan resulting from the sale of Nashua Corporation's Photofinishing Group to Images, LLC on April 8, 1998. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary schedules of assets held for investment purposes, loans or fixed income obligations, and reportable transactions are presented for the purpose of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. 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 the purpose 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. These supplementary schedules and Fund Information are the responsibility of the Plan's management. The supplementary schedules and Fund Information have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. PricewaterhouseCoopers LLP Boston, MA July 14, 1999 -1- 5
NASHUA CORPORATION EMPLOYEES' SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS (WITH FUND INFORMATION) December 31, 1998 Guaranteed Nashua Investment Common Contract Stock Puritan Magellan Fund Fund Fund Fund Contrafund ----------- ---------- ---------- ----------- ---------- Assets: Guaranteed Investment Contracts, at Contract Value $ 3,908,564 $ -- $ -- $ -- $ -- Investments at Fair Value: Nashua Common Stock Fund -- 2,085,348 -- -- -- Mutual Funds -- -- 7,168,739 19,224,304 3,767,581 Collective Investment Fund 6,986,654 -- -- -- -- Treasury Instruments 3,151,419 Employee Contributions Receivable 4,258 732 1,862 4,243 711 Employer Contributions Receivable 12,784 2,198 5,589 12,735 2,135 Cash 389,058 127,792 -- -- -- Participant Loans Receivable, at Fair Value -- -- -- -- -- ------------------------------------------------------------------------ Net Assets Available for Plan Benefits $14,452,737 $2,216,070 $7,176,190 $19,241,282 $3,770,427 ======================================================================== Equity- Growth Asset Pacific Intermediate Income Company Manager Europe Basin Bond Fund Fund Fund Fund Fund Fund ---------- ---------- -------- ---------- -------- ------------ Assets: Guaranteed Investment Contracts, at Contract Value $ -- $ -- $ -- $ -- $ -- $ -- Investments at Fair Value: Nashua Common Stock Fund -- -- -- -- -- -- Mutual Funds 5,368,736 6,665,068 502,511 2,001,915 378,295 248,579 Collective Investment Fund -- -- -- -- -- -- Treasury Instruments Employee Contributions Receivable 1,402 1,498 151 359 100 53 Employer Contributions Receivable 4,206 4,497 451 1,077 301 160 Cash -- -- -- -- -- -- Participant Loans Receivable, at Fair Value -- -- -- -- -- -- ------------------------------------------------------------------------------- Net Assets Available for Plan Benefits $5,374,344 $6,671,063 $503,113 $2,003,351 $378,696 $248,792 =============================================================================== Small Cap Gov't Money U.S. Equity Stock Market Index Loan Fund Fund Fund Fund Total -------- -------- ---------- ---------- ----------- Assets: Guaranteed Investment Contracts, at Contract Value $ -- $ -- $ -- $ -- $ 3,908,564 Investments at Fair Value: Nashua Common Stock Fund -- -- -- -- 2,085,348 Mutual Funds 919,144 801,959 2,421,801 -- 49,468,632 Collective Investment Fund -- -- -- -- 6,986,654 Treasury Instruments 3,151,419 Employee Contributions Receivable 238 200 356 -- 16,163 Employer Contributions Receivable 713 602 1,067 -- 48,515 Cash -- -- -- -- 516,850 Participant Loans Receivable, at Fair Value -- -- -- 1,698,296 1,698,296 ------------------------------------------------------------------- Net Assets Available for Plan Benefits $920,095 $802,761 $2,423,224 $1,698,296 $67,880,441 ===================================================================
See accompanying notes to financial statements -2- 6
NASHUA CORPORATION EMPLOYEES' SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS (WITH FUND INFORMATION) December 31, 1997 Guaranteed Nashua Investment Common Contract Stock Puritan Magellan Fund Fund Fund Fund Contrafund ----------- ---------- ---------- ----------- ---------- Assets: Guaranteed Investment Contracts, at Contract Value $ 4,691,494 $ -- $ -- $ -- $ -- Investments at Fair Value: Nashua Common Stock Fund -- 2,832,373 -- -- -- Mutual Funds -- -- 7,658,191 17,379,856 3,005,136 Collective Investment Fund 9,095,453 -- -- -- -- Treasury Instruments 3,361,455 Employee Contributions Receivable 3,911 673 1,709 3,898 654 Employer Contributions Receivable 11,110 1,910 4,857 11,068 1,856 Cash 277,019 -- -- -- -- Participant Loans Receivable, at Fair Value -- -- -- -- -- ------------------------------------------------------------------------ Net Assets Available for Plan Benefits $17,440,442 $2,834,956 $7,664,757 $17,394,822 $3,007,646 ======================================================================== Equity- Growth Asset Pacific Intermediate Income Company Manager Europe Basin Bond Fund Fund Fund Fund Fund Fund ---------- ---------- -------- ---------- -------- ------------ Assets: Guaranteed Investment Contracts, at Contract Value $ -- $ -- $ -- $ -- $ -- $ -- Investments at Fair Value: Nashua Common Stock Fund -- -- -- -- -- -- Mutual Funds 5,709,336 6,254,325 660,731 1,470,462 391,910 185,130 Collective Investment Fund -- -- -- -- -- -- Treasury Instruments Employee Contributions Receivable 1,286 1,378 137 329 93 50 Employer Contributions Receivable 3,656 3,908 392 936 261 139 Cash -- -- -- -- -- -- Participant Loans Receivable, at Fair Value -- -- -- -- -- -- ------------------------------------------------------------------------------- Net Assets Available for Plan Benefits $5,714,278 $6,259,611 $661,260 $1,471,727 $392,264 $185,319 =============================================================================== Small Cap Gov't Money U.S. Equity Stock Market Index Loan Fund Fund Fund Fund Total --------- ----------- ----------- ---------- ----------- Assets: Guaranteed Investment Contracts, at Contract Value $ -- $ -- $ -- $ -- $ 4,691,494 Investments at Fair Value: Nashua Common Stock Fund -- -- -- -- 2,832,373 Mutual Funds 995,328 789,296 1,434,248 -- 45,933,949 Collective Investment Fund -- -- -- -- 9,095,453 Treasury Instruments 3,361,455 Employee Contributions Receivable 217 184 325 -- 14,844 Employer Contributions Receivable 620 523 928 -- 42,164 Cash -- -- -- -- 277,019 Participant Loans Receivable, at Fair Value -- -- -- 2,201,717 2,201,717 ------------------------------------------------------------------- Net Assets Available for Plan Benefits $996,165 $790,003 $1,435,501 $2,201,717 $68,450,468 ===================================================================
See accompanying notes to financial statements -3- 7
NASHUA CORPORATION EMPLOYEES' SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS (WITH FUND INFORMATION) YEAR ENDED DECEMBER 31, 1998 Guaranteed Nashua Investment Common Contract Stock Puritan Magellan Fund Fund Fund Fund Contrafund ------------ ----------- ----------- ------------ ---------- Sources of Net Assets: Employee Contributions $ 374,158 $ 35,910 $ 275,906 $ 659,549 $ 230,043 Employer Contributions 159,431 82,136 83,824 206,115 61,007 Investment Income 896,939 -- 752,257 967,344 278,128 Net Appreciation of Investments -- 481,884 382,211 4,336,735 610,854 Loan Repayments 128,057 11,210 84,531 198,793 34,023 Loan Interest 37,624 1,011 16,896 45,489 8,959 -------------------------------------------------------------------------------- 1,596,209 612,151 1,595,625 6,414,025 1,223,014 -------------------------------------------------------------------------------- Applications of Net Assets: Plan Withdrawals 2,781,266 385,187 1,022,817 1,944,075 495,190 Net Depreciation of Investments -- -- -- -- -- Loan Withdrawals 150,851 25,998 42,802 302,276 46,221 Rollovers (see Note 6) 2,075,983 402,306 585,113 1,814,019 163,270 Administrative Expenses 22,541 40 3,501 1,938 288 -------------------------------------------------------------------------------- 5,030,641 813,531 1,654,233 4,062,308 704,969 -------------------------------------------------------------------------------- Increase (Decrease) in Net Assets During the Year, prior to transfers (3,434,432) (201,380) (58,608) 2,351,717 518,045 Net Transfers Between Funds 446,727 (417,506) (429,959) (505,257) 244,736 -------------------------------------------------------------------------------- Increase (Decrease) in Net Assets During the Year (2,987,705) (618,886) (488,567) 1,846,460 762,781 Beginning of Year 17,440,442 2,834,956 7,664,757 17,394,822 3,007,646 -------------------------------------------------------------------------------- End of Year $ 14,452,737 $ 2,216,070 $ 7,176,190 $ 19,241,282 $3,770,427 ================================================================================ Equity- Growth Asset Pacific Income Company Manager Europe Basin Fund Fund Fund Fund Fund ----------- ----------- --------- ---------- --------- Sources of Net Assets: Employee Contributions $ 269,441 $ 281,777 $ 33,867 $ 97,222 $ 36,963 Employer Contributions 79,080 84,640 14,805 32,027 18,212 Investment Income 323,836 476,814 91,758 143,503 565 Net Appreciation of Investments 344,912 1,030,396 14,745 179,057 25,925 Loan Repayments 53,059 68,054 3,287 20,721 9,498 Loan Interest 11,594 18,386 1,335 4,503 2,209 ------------------------------------------------------------------------- 1,081,922 1,960,067 159,797 477,033 93,372 ------------------------------------------------------------------------- Applications of Net Assets: Plan Withdrawals 691,923 575,521 125,978 211,063 61,058 Net Depreciation of Investments -- -- 23,917 -- 5,509 Loan Withdrawals 75,368 69,930 7,578 15,259 4,042 Rollovers (see Note 6) 462,131 419,165 78,874 27,737 30,086 Administrative Expenses 1,234 1,321 211 1,102 513 ------------------------------------------------------------------------- 1,230,656 1,065,937 236,558 255,161 101,208 ------------------------------------------------------------------------- Increase (Decrease) in Net Assets During the Year, prior to transfers (148,734) 894,130 (76,761) 221,872 (7,836) Net Transfers Between Funds (191,200) (482,678) (81,386) 309,752 (5,732) -------------------------------------------------------------------------- Increase (Decrease) in Net Assets During the Year (339,934) 411,452 (158,147) 531,624 (13,568) Beginning of Year 5,714,278 6,259,611 661,260 1,471,727 392,264 ------------------------------------------------------------------------- End of Year $ 5,374,344 $ 6,671,063 $ 503,113 $2,003,351 $ 378,696 ========================================================================= Intermediate Small Cap Gov't Money U.S. Equity Bond Stock Market Index Loan Fund Fund Fund Fund Fund Total --------- --------- --------- ----------- ---------- ------------ Sources of Net Assets: Employee Contributions $ 19,397 $ 65,274 $ 43,340 $ 118,639 $ -- $ 2,541,486 Employer Contributions 5,208 25,814 13,756 33,126 -- 899,181 Investment Income 15,472 39,869 44,271 41,680 -- 4,072,436 Net Appreciation of Investments 2,326 -- -- 435,007 -- 7,844,052 Loan Repayments 1,449 6,564 4,316 19,259 (642,821) -- Loan Interest 1,180 1,566 1,237 3,269 -- 155,258 --------------------------------------------------------------------------------------- 45,032 139,087 106,920 650,980 (642,821) 15,512,413 --------------------------------------------------------------------------------------- Applications of Net Assets: Plan Withdrawals 67,422 122,068 477,191 115,610 305,461 9,381,830 Net Depreciation of Investments -- 98,387 -- -- -- 127,813 Loan Withdrawals 1,593 10,187 5,386 11,509 (769,000) -- Rollovers (see Note 6) 6,777 22,809 88,214 37,389 324,139 6,538,012 Administrative Expenses 108 189 1,499 300 -- 34,785 --------------------------------------------------------------------------------------- 75,900 253,640 572,290 164,808 (139,400) 16,082,440 --------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets During the Year, prior to transfers (30,868) (114,553) (465,370) 486,172 (503,421) (570,027) Net Transfers Between Funds 94,341 38,483 478,128 501,551 -- -- -------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets During the Year 63,473 (76,070) 12,758 987,723 (503,421) (570,027) Beginning of Year 185,319 996,165 790,003 1,435,501 2,201,717 68,450,468 --------------------------------------------------------------------------------------- End of Year $ 248,792 $ 920,095 $ 802,761 $ 2,423,224 $ 1,698,296 $ 67,880,441 =======================================================================================
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, 1997 Guaranteed Nashua Investment Common Contract Stock Puritan Magellan Fund Fund Fund Fund Contrafund ------------ ----------- ---------- ------------ ---------- Sources of Net Assets: Employee Contributions $ 745,835 $ 39,043 $ 320,330 $ 851,758 $ 273,233 Employer Contributions 227,850 125,026 110,335 269,796 78,962 Investment Income 1,247,051 -- 622,549 1,122,733 289,699 Net Appreciation of Investments -- 1,016 810,119 2,553,035 230,661 Rollovers -- -- -- -- -- Loan Repayments 201,956 5,858 76,878 258,668 42,841 Loan Interest 56,545 1,522 20,880 60,445 7,196 ---------------------------------------------------------------------- 2,479,237 172,465 1,961,091 5,116,435 922,592 ---------------------------------------------------------------------- Applications of Net Assets: Plan Withdrawals 2,702,350 216,875 734,612 1,544,195 351,805 Net Depreciation of Investments -- 84,528 -- -- -- Loan Withdrawals 233,511 5,828 63,408 189,615 32,311 Rollovers 49,598 -- 1,307 2,426 12,710 Administrative Expenses 27,083 77 3,881 2,050 253 ---------------------------------------------------------------------- 3,012,542 307,308 803,208 1,738,286 397,079 ---------------------------------------------------------------------- Increase (Decrease) in Net Assets During the Year, prior to transfers (533,305) (134,843) 1,157,883 3,378,149 525,513 Net Transfers Between Funds (808,245) (243,968) 54,438 (356,837) 23,265 Transfer from Savings Plan for Specified Hourly Employees 1,011 1,209 -- 4,560 -- ---------------------------------------------------------------------- Increase (Decrease) in Net Assets During the Year (1,340,539) (377,602) 1,212,321 3,025,872 548,778 ---------------------------------------------------------------------- Net Assets Available for Plan Benefits: Beginning of Year 18,780,981 3,212,558 6,452,436 14,368,950 2,458,868 ---------------------------------------------------------------------- End of Year $ 17,440,442 $ 2,834,956 $7,664,757 $ 17,394,822 $3,007,646 ====================================================================== Equity- Growth Asset Pacific Income Company Manager Europe Basin Fund Fund Fund Fund Fund ---------- ----------- ----------- ---------- --------- Sources of Net Assets: Employee Contributions $ 325,500 $ 407,241 $ 40,737 $ 101,425 $ 53,155 Employer Contributions 89,603 111,052 15,750 37,564 24,318 Investment Income 318,267 597,916 57,191 128,228 7,799 Net Appreciation of Investments 1,025,205 441,762 63,584 159,327 -- Rollovers -- -- -- -- -- Loan Repayments 67,299 89,256 4,968 14,037 20,036 Loan Interest 13,291 19,488 2,016 4,642 3,549 ----------------------------------------------------------------- 1,839,165 1,666,715 184,246 445,223 108,857 ----------------------------------------------------------------- Applications of Net Assets: Plan Withdrawals 643,741 681,298 134,865 79,136 28,304 Net Depreciation of Investments -- -- -- -- 80,471 Loan Withdrawals 57,952 92,498 12,589 19,705 26,550 Rollovers 5,413 747 -- -- -- Administrative Expenses 1,430 2,005 297 549 1,460 ----------------------------------------------------------------- 708,536 776,548 147,751 99,390 136,785 ----------------------------------------------------------------- Increase (Decrease) in Net Assets During the Year, prior to transfers 1,130,629 890,167 36,495 345,833 (27,928) Net Transfers Between Funds 473,307 (325,435) (14,744) 50,921 (144,857) Transfer from Savings Plan for Specified Hourly Employees 5,661 3,239 -- -- 137 ----------------------------------------------------------------- Increase (Decrease) in Net Assets During the Year 1,609,597 567,971 21,751 396,754 (172,648) Net Assets Available for Plan Benefits: Beginning of Year 4,104,681 5,691,640 639,509 1,074,973 564,912 ----------------------------------------------------------------- End of Year $5,714,278 $ 6,259,611 $ 661,260 $1,471,727 $ 392,264 ================================================================= Intermediate Small Cap Gov't Money U.S. Equity Bond Stock Market Index Loan Fund Fund Fund Fund Fund Total ------------ --------- ----------- ----------- ---------- ----------- Sources of Net Assets: Employee Contributions $ 19,687 $ 56,850 $ 61,166 $ 99,838 $ -- $ 3,395,798 Employer Contributions 5,508 25,993 16,674 38,909 -- 1,177,340 Investment Income 7,474 71,518 47,647 33,989 -- 4,552,061 Net Appreciation of Investments 1,392 97,540 -- 301,378 -- 5,685,019 Rollovers -- -- 18,665 -- -- 18,665 Loan Repayments 10,406 6,666 6,656 8,060 (813,585) -- Loan Interest 1,214 1,550 1,303 2,485 -- 196,126 ------------------------------------------------------------------------ 45,681 260,117 152,111 484,659 (813,585) 15,025,009 ------------------------------------------------------------------------ Applications of Net Assets: Plan Withdrawals 6,119 150,196 555,254 517,217 241,515 8,587,482 Net Depreciation of Investments 313 -- -- -- -- 165,312 Loan Withdrawals 10,743 6,653 13,463 1,673 (766,499) -- Rollovers -- -- -- -- 195,418 267,619 Administrative Expenses 213 610 1,545 201 -- 41,654 ------------------------------------------------------------------------ 17,388 157,459 570,262 519,091 (329,566) 9,062,067 ------------------------------------------------------------------------ Increase (Decrease) in Net Assets During the Year, prior to transfers 28,293 102,658 (418,151) (34,432) (484,019) 5,962,942 Net Transfers Between Funds 69,236 153,675 340,578 728,666 -- -- Transfer from Savings Plan for Specified Hourly Employees -- -- 969 -- -- 16,786 ------------------------------------------------------------------------ Increase (Decrease) in Net Assets During the Year 97,529 256,333 (76,604) 694,234 (484,019) 5,979,728 Net Assets Available for Plan Benefits: Beginning of Year 87,790 739,832 866,607 741,267 2,685,736 62,470,740 ------------------------------------------------------------------------ End of Year $185,319 $996,165 $ 790,003 $1,435,501 $2,201,717 $68,450,468 ========================================================================
See accompanying notes to financial statements -5- 9 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 Puritan Fund, Fidelity Magellan Fund, Fidelity Contrafund, Fidelity Equity-Income Fund, Fidelity Growth Company Fund, Fidelity Asset Manager Fund, Fidelity Europe Fund, Fidelity Pacific Basin Fund, Fidelity Intermediate Bond Fund, Fidelity Small Cap Stock Fund, Fidelity Retirement Government Money Market Fund, or Fidelity Spartan U.S. Equity Index Fund), a Guaranteed Investment Contract Fund managed by the Trustee, or the Nashua Common Stock Fund. INVESTMENT VALUATION Common shares of Nashua Corporation ("the Company") and treasury instruments 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. -6- 10 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, 1998 and 1997, there were 362 and 612 loans outstanding totaling $1,698,298 and $2,201,717, 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 estimated. 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 on 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 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. -7- 11 NOTE 3 - INVESTMENTS The Plan's investments, excluding the Guaranteed Investment Contract Fund, are summarized as follows:
December 31, --------------------------------- 1998 1997 ----------- ----------- Nashua Common Stock Fund $ 2,085,348 $ 2,832,373 Fidelity Puritan Fund 7,168,739 7,658,191 Fidelity Magellan Fund 19,224,304 17,379,856 Fidelity Contrafund 3,767,581 3,005,136 Fidelity Equity-Income Fund 5,368,736 5,709,336 Fidelity Growth Company Fund 6,665,068 6,254,325 Fidelity Asset Manager Fund 502,511 660,731 Fidelity Europe Fund 2,001,915 1,470,462 Fidelity Pacific Basin Fund 378,295 391,910 Fidelity Intermediate Bond Fund 248,579 185,130 Fidelity Small Cap Stock Fund 919,144 995,328 Money Market Fund 801,959 789,296 Fidelity Spartan U.S. Equity Index Fund 2,421,801 1,434,248 ----------- ----------- $51,553,980 $48,766,322 =========== ===========
NOTE 4 - GUARANTEED INVESTMENT CONTRACT FUND The Plan's investment in the Guaranteed Investment Contract Fund consists of the following:
December 31, --------------------------------- 1998 1997 ----------- ----------- First Allmerica 3.25% Due 4/30/00 $ 690,614 $ 668,875 Life of Virginia 8.32% Due 1/31/99 1,279,416 1,181,145 Lincoln National Life Insurance Company 6.28% Due 5/1/00 -- 990,787 Pacific Mutual Life Insurance Company 5.30% Due 4/29/00 866,380 822,773 Monumental Life 3.63% Due 4/30/01 610,928 589,528 Monumental Life 5.21% Due 4/30/01 461,226 438,386 United States Treasury Note 8.5% Due 11/15/00 3,151,419 3,361,455 Fidelity Managed Income Portfolio II 6,986,654 9,095,453 Cash 389,058 277,019 ----------- ----------- $14,435,695 $17,425,421 =========== ===========
The average yields of the Guaranteed Investment Contract Fund for the periods ended December 31, 1998 and 1997 were approximately 5.92% and 6.4%, respectively. Crediting interest rates remained the same, as noted above, for both 1998 and 1997. The issuing institution's ability to meet its contractual obligation under the respective contracts may be affected by future economic and regulatory developments in the insurance industry. -8- 12 NOTE 5 - SAVINGS PLANS MASTER TRUST Prior to January 1, 1998, the assets of the Plan were commingled with assets of Nashua Corporation Savings Plan for Specified Hourly Employees in the Nashua Corporation Savings Plan's Master Trust ("the Master Trust"). Effective December 31, 1997, the Nashua Corporation Savings Plan for Specified Hourly Employees merged into the Plan resulting in the dissolution of the Master Trust on January 1, 1998. 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 100% of the Master Trust at December 31, 1997. The Plan's participation in the net assets of the Master Trust was recorded based on individual Plan participants' account balances. Investment income and expenses for each investment option was allocated to the individual participant account balances based on the pro-rata beginning account balances less withdrawals and loans made to participants.
December 31, 1997 ------------ Statement of Net Assets Available for Plan Benefits: Guaranteed Investment Contracts, at Contract Value $ 4,691,494 Nashua Common Stock Fund, at Fair Value 2,832,373 Mutual Funds, at Fair Value 45,933,949 Collective Investment Fund, at Fair Value 9,095,453 Treasury Instruments, at Fair Value 3,361,455 Cash 277,019 Employee Contributions Receivable 14,844 Employer Contributions Receivable 42,164 Participant Loans Receivable, at Fair Value 2,201,717 ----------- Net Assets Available for Plan Benefits $68,450,468 =========== Year Ended December 31, 1997 ----------- Statement of Changes in Net Assets Available for Plan Benefits: Sources of Net Assets: Employee Contributions $ 3,395,798 Employer Contributions 1,177,340 Investment Income 4,554,817 Net Appreciation of Investments 5,689,688 Rollovers In 18,665 Loan Interest 196,126 ----------- 15,032,434 ----------- Application of Net Assets: Plan Withdrawals 8,665,329 Net Depreciation of Investments 165,421 Administrative Expenses 42,128 Rollovers Out 267,619 ----------- 9,140,497 ----------- Increase in Net Assets During the Year $ 5,891,937 ===========
-9- 13 The Master Trust purchased 15,500 common shares of Nashua Corporation at a total cost of $209,098 during 1997. The Master Trust received $443,411 from the sale of 38,010 common shares of Nashua Corporation during 1997. NOTE 6 - BUSINESS CHANGES Nashua Corporation's Photofinishing Group was sold on April 8, 1998 to Images, LLC (the "Purchaser"). As of the sale date, the active participants of the Photofinishing Group had the option to take a distribution from the Plan or rollover balances into the Purchaser's plan, York Photo Labs Savings Plan. Rollover amounts relating to the Photofinishing Group participants transferred from the Plan on July 1, 1998 were $6,538,012. -10- 14
Nashua Corporation Employees' Savings Plan Item 27a - Schedule of Assets Held For Investment Purposes December 31, 1998 - ----------------------------------------------------------------------------------------------------------------------------------- (a) (b) (c) (d) (e) Identity of issue Description of investments borrower, lessor, including maturity date, rate of interest, Principal or Current or similar party collateral, par or maturity value Number of Shares Cost Value Guaranteed Investment Contract Fund First Allmerica 3.25% Due 4/30/00 $ 690,614 $ 690,614 $ 690,614 Life of Virginia 8.32% Due 1/31/99 $1,279,416 1,279,416 1,279,416 Pacific Mutual Life Insurance Company 5.30% Due 4/29/00 $ 866,380 866,380 866,380 Monumental Life 3.63% Due 4/30/01 $ 610,928 610,928 610,928 Monumental Life 5.21% Due 4/30/01 $ 461,226 461,226 461,226 United States Treasury Note 8.5% Due 11/15/00 $3,151,420 3,151,419 3,151,419 *Fidelity Management Trust Company Fidelity Managed Income Portfolio II 6,986,654 6,986,654 6,986,654 *Fidelity Management Trust Company FMTC Institutional Money Market 389,058 389,058 389,058 ----------- ----------- 14,435,695 14,435,695 ----------- ----------- * Nashua Corporation Nashua Common Stock Fund Nashua Common Stock 156,766 3,486,198 2,085,348 Cash 127,792 127,792 ----------- ----------- 3,613,990 2,213,140 ----------- ----------- * Fidelity Management Trust Company Puritan Fund 357,187 5,992,280 7,168,739 * Fidelity Management Trust Company Magellan Fund 159,115 12,696,588 19,224,304 * Fidelity Management Trust Company Contrafund 66,342 3,045,637 3,767,581 * Fidelity Management Trust Company Equity-Income Fund 96,647 3,898,857 5,368,736 * Fidelity Management Trust Company Growth Company Fund 130,636 5,032,639 6,665,068 * Fidelity Management Trust Company Asset Manager Fund 28,897 473,525 502,511 * Fidelity Management Trust Company Europe Fund 59,794 1,681,823 2,001,915 * Fidelity Management Trust Company Pacific Basin Fund 28,615 408,372 378,295 * Fidelity Management Trust Company Intermediate Bond Fund 24,204 247,507 248,579 * Fidelity Management Trust Company Small Cap Stock Fund 64,774 939,038 919,144 * Fidelity Management Trust Company Gov't Money Market Fund 801,959 801,959 801,959 * Fidelity Management Trust Company US Equity Index Fund 55,091 1,775,967 2,421,801 ----------- ----------- Total of Mutual Funds 36,994,192 49,468,632 ----------- ----------- Participant Loans Receivable Participant Loan Receivable 8% to 13.5% 1,698,296 1,698,296 ----------- ----------- Total Investments $56,742,173 $67,815,763 =========== ===========
* Denotes a party in interest -11- 15
Nashua Corporation Employees' Savings Plan Item 27b - Schedule of Loans or Fixed Income Obligations in Default Year Ended December 31, 1998 ================================================================================================================================== Amount received during Amount reporting year overdue --------------- ------------ (a) (b) (c) (d) (e) (f) (g) Original Principal + Unpaid Detailed description of loan Principal + Identity and amount Interest balance at including dates of making and Interest address of obligor of loan end of year maturity, interest rate, the type and value of collateral, any renegotiation of the loan and the terms of the renegotiation, and other material items Participants Loans: *Flanders, Luke R., 1,500 256.48 1,257.86 Loan dated 05/09/1997, 10.25% $128.24 PO Box 658, Broadway, VA 22815-0658 *O'Connor-Fix, Geraldine M., 5,000 1,133.51 3,841.76 Loan dated 06/03/1997, 10.25% 809.65 11 Bailey Street, Nashua, NH 03063 *Nelson, Becky Joanne, 2,000 299.25 1,577.26 Loan dated 12/16/1996, 10.25% 213.75 2600 36th Street, Parkersburg, WV 26104 *Nelson, Becky Joanne, 2,000 647.71 1,601.79 Loan dated 10/24/1997, 10.25% 462.65 2600 36th Street, Parkersburg, WV 26104
- ------------ *1099 will be issued for 1999 -12- 16
Nashua Corporation Employees' Savings Plan Item 27d - Schedule of Reportable Transactions* Year Ended December 31, 1998 - ------------------------------------------------------------------------------------------------------------------------------------ (f) Expense (h) incurred Current value (a) (c) (d) (e) with (g) of asset on (i) Identity of party (b) Purchase Selling Lease trans- Cost of transaction Net gain involved Description of asset price price rental action asset date or (loss) Fidelity Management Trust Company Fidelity Managed $2,074,281 N/A N/A $2,074,281 $ - Income Portfolio II $4,647,387 $4,647,387 $4,647,387 $ - Fidelity Management Trust Company FMTC Institutional Money Market $9,510,463 N/A N/A $9,510,463 $ - $9,419,316 $9,419,316 9,419,316 $ - Fidelity Management Trust Company Fidelity Puritan Fund $1,558,330 N/A N/A $1,558,330 $ - $2,429,993 $2,035,227 $2,429,993 $ 394,766 Fidelity Management Trust Company Fidelity Magellan Fund $3,779,291 N/A N/A $3,779,291 $ - $6,271,578 $4,763,479 $6,271,578 $1,508,099 Fidelity Management Trust Company Fidelity Growth Company $1,615,340 N/A N/A $1,615,340 $ - Fund $2,234,993 $1,768,715 $2,234,993 $ 466,278
* Transactions in excess of 5% of the current value of the Plan's assets as of December 31, 1997 -13- 17 NASHUA CORPORATION EMPLOYEE'S 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: July 14, 1999 By /s/ John L. Patenaude ------------- ------------------------------------- John L. Patenaude Nashua Corporation Vice President - Finance Chief Financial Officer and Treasurer EX-23 2 CONSENT OF PRICEWATERHOUSECOOPERS LLP 1 CONSENT OF INDEPENDENT ACCOUNTANTS We hereby consent to the incorporation by reference in the Registration Statement on Form S-8 (No. 33-72438)of Nashua Corporation of our report dated July 14, 1999 relating to the financial statements of the Nashua Corporation Employees' Savings Plan for the year ended December 31, 1998 included with this Form 11-K. PricewaterhouseCoopers LLP Boston, Massachusetts July 14, 1999 -----END PRIVACY-ENHANCED MESSAGE-----