-----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, ETUG1LOC8XFJJsXqD5wuDIdch4VBHmlziFt286da9LUFoJ8uhnmU4QMxmzaxjSTi QuL1a7Tu6mN02CPRFVGc/A== 0000731947-96-000019.txt : 19961210 0000731947-96-000019.hdr.sgml : 19961210 ACCESSION NUMBER: 0000731947-96-000019 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961112 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: SWISS ARMY BRANDS INC CENTRAL INDEX KEY: 0000731947 STANDARD INDUSTRIAL CLASSIFICATION: 5094 IRS NUMBER: 132797726 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-12823 FILM NUMBER: 96659044 BUSINESS ADDRESS: STREET 1: ONE RESEARCH DRIVE CITY: SHELTON STATE: CT ZIP: 06484-6226 BUSINESS PHONE: 2039296391 MAIL ADDRESS: STREET 1: ONE RESEARCH DRIVE CITY: SHELTON STATE: CT ZIP: 06484-6226 FORMER COMPANY: FORMER CONFORMED NAME: FORSCHNER GROUP INC DATE OF NAME CHANGE: 19920703 10-Q 1 QUARTERLY REPORT FOR SWISS ARMY BRANDS, INC. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________ FORM 10-Q [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 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 0-1282-3 Swiss Army Brands, Inc. (Exact name of registrant as specified in its charter) Delaware 13-2797726 (State of incorporation) (I.R.S. Employer Identification No.) One Research Drive, Shelton, Connecticut 06484 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (203) 929-6391 NOT APPLICABLE (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 The number of shares of Issuer's Common Stock, $.10 par value, outstanding on October 31, 1996, was 8,208,860 shares. SWISS ARMY BRANDS, INC. AND SUBSIDIARIES INDEX
PART I: FINANCIAL INFORMATION Page No. Item 1. FINANCIAL STATEMENTS Consolidated Balance Sheets as of September 30, 1996 and December 31, 1995. 3 - 4 Consolidated Statements of Operations for the three and nine months ended September 30, 1996 and 1995. 5 Consolidated Statements of Stockholders Equity for the nine months ended September 30, 1996 and 1995. 6 Consolidated Statements of Cash Flows for the nine months ended September 30, 1996 and 1995. 7 Notes to Consolidated Financial Statements 8 - 9 Item 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 10 - 13 Part II: OTHER INFORMATION Item 6. EXHIBITS AND REPORTS ON FORM 8-K 14 Signatures 15 The Exhibit Index appears on page 13.
2 SWISS ARMY BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS Assets
At September 30, At December 31, 1996 1995 (unaudited) Current assets: Cash and short-term investments .......... $ 2,103,726 $ 608,757 Accounts receivable, less allowance for doubtful accounts of $860,000 and $975,000, respectively .. 27,652,904 31,970,449 Inventories .............................. 34,695,192 36,733,146 Deferred income tax benefits ............. 2,395,858 2,395,858 Prepaid and other ........................ 5,332,354 2,647,121 ----------- ----------- Total current assets .................. 72,180,034 74,355,331 ----------- ----------- Deferred income tax benefits ................ 771,371 771,371 Property, plant and equipment, at cost: Leasehold improvements ................... 1,001,824 818,446 Equipment ................................ 7,006,789 6,199,914 Furniture and fixtures ................... 1,665,650 1,473,188 ----------- ----------- 9,674,263 8,491,548 Less-accumulated depreciation ............ (5,636,528) (4,385,683) ----------- ----------- 4,037,735 4,105,865 ----------- ----------- Investment in preferred units, at cost ...... 9,002,999 7,002,990 Investment in unconsolidated affiliate ...... 1,912,430 2,591,415 Foreign distribution rights, net of accumulated amortization of $2,359,319 and $1,843,812, respectively ............. 4,383,372 4,900,396 Other assets, net of accumulated amortization of $2,256,081 and $3,166,339, respectively ................. 8,526,728 7,502,884 ----------- ----------- Total Assets $ 100,814,669 $ 101,230,252 ============= =============
3 SWISS ARMY BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS Liabilities and Stockholders' Equity
At September 30, At December 31, 1996 1995 (unaudited) Current liabilities: Accounts payable ......................... $ 10,920,912 $ 6,479,200 Accrued liabilities ...................... 7,522,354 8,697,994 Note payable ............................. 675,000 --- Income taxes payable ..................... --- 1,114,389 ---------- ----------- Total current liabilities .............. 19,118,266 16,291,583 ---------- ----------- Commitments and contingencies Stockholders equity Preferred stock, par value $.10 per share: shares authorized - 2,000,000; no shares issued ........... --- --- Common stock, par value $.10 per share: shares authorized - 12,000,000; shares issued - 8,820,468 and 8,800,718, respectively.. 882,047 880,072 Additional paid-in capital ............... 46,136,390 45,897,740 Unrealized gain on marketable securities ............................ 169,465 --- Foreign currency translation adjustment .. (1,804) (9,216) Retained earnings ........................ 39,623,772 43,283,540 ---------- ----------- 86,809,870 90,052,136 Less-cost of common stock in treasury; 614,108 shares .............. (5,113,467) (5,113,467) ---------- ----------- Total stockholders equity 81,696,403 84,938,669 ---------- ----------- Total Liabilities and Stockholders Equity .. $ 100,814,669 $ 101,230,252 ============= =============
4 SWISS ARMY BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Three Months Ended Nine Months Ended September 30, September 30, 1996 1995 1996 1995 Net sales ................. $34,616,208 $30,186,155 $89,372,371 $85,481,135 Cost of sales ............. 22,619,819 19,720,049 63,394,304 55,598,986 ---------- ---------- ---------- ---------- Gross profit .............. 11,996,389 10,466,106 25,978,067 29,882,149 Selling, general and administrative expenses ... 10,828,014 9,636,030 29,537,378 26,768,550 Special charges ........... --- --- 2,073,000 --- ---------- ---------- ---------- ---------- Operating income (loss) ... 1,168,375 830,076 (5,632,311) 3,113,599 Interest (expense) ........ (61,856) (85,861) (103,918) (104,395) Interest income ........... 5,431 106,861 107,356 523,165 Impairment of investment .. --- --- (800,000) --- Other income (expense), net 28,121 (310,745) 156,105 (258,433) ---------- --------- --------- ---------- Total interest and other income,net ................ (28,304) (289,745) (640,457) 160,337 ---------- --------- --------- ---------- Income (loss) before income taxes ............. 1,140,071 540,331 (6,272,768) 3,273,936 Income tax provision (benefit) 498,000 344,041 (2,613,000) 1,588,681 ---------- --------- --------- ---------- Net income (loss) ......... $642,071 $196,290 ($3,659,768) $1,685,255 ========== ========= ========== ========== Net income (loss) per share $0.08 $0.02 ($0.44) $0.20 ========== ========= ========== ========== Weighted average number of shares outstanding ..... 8,334,166 8,252,978 8,328,423 8,231,012 ========== ========= ========== ==========
5 SWISS ARMY BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
Foreign Common Stock Par Additional Currency Unrealized Gain Value $.10 Paid-In Translation on Marketable Retained Treasury Shares Amount Capital Adjustment Securities Earnings Stock Balance December 31, 1994 8,796,968 $879,697 $45,866,814 ($28,085) $ --- $40,170,324 ($5,113,467) Net income for nine months ended September 30, 1995 (unaudited) --- --- --- --- --- 1,685,255 --- Stock options and warrants exercised 2,500 250 22,862 --- --- --- --- Foreign currency translation adjustment --- --- --- 28,190 --- --- --- --------- -------- ----------- ------- --------- ----------- ----------- Balance, September 30, 1995 (unaudited) 8,799,468 $879,947 $45,889,676 $105 --- $41,855,579 ($5,113,467) ========= ======== =========== ======= ========= =========== =========== Balance December 31, 1995 8,800,718 $880,072 $45,897,740 ($9,216) $ --- $43,283,540 ($5,113,467) Net income (loss) for nine months ended September 30, 1996 (unaudited) --- --- --- --- --- (3,659,768) --- Stock options and warrants exercised 19,750 1,975 238,650 --- --- --- --- Unrealized gain on marketable securities --- --- --- --- 169,465 --- --- Foreign currency translation adjustment --- --- --- 7,412 --- --- --- --------- ------- ----------- ------- --------- ----------- ---------- Balance, September 30, 1996 (unaudited) 8,820,468 $882,047 $46,136,390 ($1,804) $169,465 $39,623,772 ($5,113,467) ========= ======== =========== ======= ========= =========== ==========
6 SWISS ARMY BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
Nine months ended September 30, 1996 1995 Cash flows from operating activities: Net income (loss) ($3,659,768) $ 1,685,255 Adjustments to reconcile net income (loss) to cash provided from (used for) operating activities: Depreciation and amortization 2,334,200 2,421,880 Equity in earnings of unconsolidated subsidiaries, net of goodwill amortization --- 299,702 Deferred income taxes --- 141,364 Special charges 6,594,000 --- Impairment of investment 800,000 --- Gain on sale of fixed assets (24,319) --- Gain on sale of partial investment in stock (11,050) --- --------- --------- 6,033,063 4,548,201 Changes in other current assets and liabilities: Accounts receivable 4,317,544 3,477,571 Inventories (2,483,046) (15,146,112) Prepaid and other (3,531,233) (1,765,827) Accounts payable 4,527,554 (4,385,566) Accrued liabilities (1,562,365) (298,284) Income taxes payable (1,113,505) (1,223,193) --------- ---------- Net cash provided from (used for) operating activities 6,188,012 (14,793,210) --------- ---------- Cash flows from investing activities: Capital expenditures (1,221,052) (953,794) Proceeds from sales of property, plant & equipment 42,955 --- Additions to other assets (2,497,668) (1,333,024) Investment in preferred units (2,000,008) --- Investments in common stock --- (3,425,547) Proceeds from sale of investments in stock 59,500 --- --------- --------- Net cash (used for) investing activities (5,616,273) (5,712,365) --------- --------- Cash flows from financing activities: Proceeds from note payable 675,000 3,250,000 Proceeds from exercise of stock options 240,625 23,112 --------- --------- Net cash provided from financing activities 915,625 3,273,112 --------- --------- Effect of exchange rate changes on cash 7,605 (99,547) --------- --------- Net increase (decrease) in cash and short-term investments 1,494,969 (17,332,010) Cash and short-term investments, beginning of period 608,757 18,019,797 --------- ---------- Cash and short-term investments, end of period 2,103,726 687,787 ========= ========== Cash paid during the period: Interest $103,918 $24,395 ========= ========== Income taxes $1,692,233 $2,821,410 ========= ==========
7 SWISS ARMY BRANDS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 1996 and 1995 (unaudited) CONSOLIDATED FINANCIAL STATEMENTS The consolidated financial statements included in this Form 10-Q have been prepared by the Swiss Army Brands, Inc.(the Company formerly The Forschner Group, Inc.) without audit. 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 the rules and regulations of the Securities and Exchange Commission. It is suggested that these consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company's report on Form 10-K for the year ended December 31, 1995. In the opinion of management of the Company, the interim financial statements included herein reflect all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Due to the seasonal nature of the Company's business, the results of operations for the interim periods presented are not necessarily indicative of the operating results for the full year. INVENTORIES - - ----------- Domestic inventories are stated at the lower of cost (determined by the last-in, first-out (LIFO) method) or market. Foreign inventories are valued at the lower of cost or market determined by the FIFO method. Inventories principally consist of finished goods and packaging material. INVESTMENTS - - ----------- Investments are comprised of the following as of September 30, 1996 and December 31, 1995
September 30, December 31, 1996 1995 Investment in preferred units, at cost (A) $9,002,999 $7,002,990 Investment in common stock and note receivable, at cost (B) ............. --- 800,000 Investment in unconsolidated affiliate (C) 1,912,430 1,791,415 ---------- ---------- Total investments $10,915,429 $9,594,405 ========== ==========
(A) Represents the Companys investment in Hudson River Capital LLC, formerly Victory Capital LLC, a privately held corporation. The Companys preferred units capital account is allocated preferred amounts under certain circumstances in years in which Victory has profit. During the second quarter, the Company increased its investment in Hudson River Capital by approximately $2,000,000. The Company is accounting for this investment on the cost basis. 8 (B) Represents the Companys investment in a private affiliated start-up entity that is in the business of designing, manufacturing and marketing fine jewelry. The common stock and note receivable were recorded at cost. This investment was written-off during the second quarter, due to impairment in the value of this investment. (C) Represents the Companys investment in SweetWater, Inc (SweetWater). Effective January 1, 1996, the Company decreased its percentage ownership of SweetWater to below 20%. In accordance with generally accepted accounting principles, this investment is being accounted for at fair value, with the Company recording unrealized gains (losses) as a component of stockholders equity. SPECIAL CHARGES - - --------------- The Company recorded non-cash special charges totaling $7.4 million in the second quarter. The write-offs consist of $4.5 million in discontinued inventory (reflected in cost of sales) and $2.9 million in obsolete displays, goodwill, intangible assets, and non-strategic investments. INCOME TAXES - - ------------ Income taxes are provided at the projected annual effective tax rate. The income tax provisions (benefits) for the interim 1996 and 1995 periods exceed the federal statutory rate of 34% due primarily to state income taxes (net of federal benefit). EARNINGS PER COMMON SHARE - - ------------------------- The weighted average number of shares of common stock outstanding include the dilutive effect of stock options outstanding. The fully diluted earnings per share amount for both periods is the same as primary earnings per share. 9 SWISS ARMY BRANDS, INC. AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (unaudited) RESULTS OF OPERATIONS - - --------------------- Comparison of the Three Months Ended September 30, 1996 and 1995 - - ---------------------------------------------------------------- Sales for the three months ended September 30, 1996 were $34.6 million compared with $30.2 million for the same period a year ago, representing an increase of $4.4 million or 14.6%. For the three month period, sales of Swiss Army Brand Watches and cutlery increased, while sales of Victorinox Original Swiss Army Knives decreased. Gross profit of $12.0 million for the three months ended September 30, 1996 increased $1.5 million or 14% from 1995. The increase relates primarily to the increase in net sales. The gross profit margin for the second quarter of 1996 of 34.7% was equal to the gross profit margin for the same period of 1995. Swiss Army's gross profit margin may fluctuate due to changes in product mix and Swiss franc exchange rates. Since the Company imports virtually all of its products from Switzerland, its costs are affected by both the spot rate of exchange and by its foreign currency hedging program. The Company enters into foreign currency contracts and options to hedge the exposure associated with foreign currency fluctuations. However, such hedging activity cannot eliminate the long-term adverse impact on the Companys competitive position and results of operations that would result from a sustained decrease in the value of the dollar versus the Swiss franc. These hedging transactions, which are meant to reduce foreign currency risk, also reduce the beneficial effects to the Company if the dollar increases relative to the Swiss franc. The Company plans to continue to engage in hedging transactions; however, it is uncertain as to what extent to which such hedging transactions will reduce the effect of adverse currency fluctuations. Selling, general and administrative expenses for the three months ended September 30, 1996 of $10.8 million were $1.2 million or 12% higher than the amount for the comparable period in 1995. The increase in expenses resulted primarily from increases in selling expenses and merchandising and promotional expenses. As a percentage of net sales, selling, general and administrative expenses decreased from 31.9% in 1995 to 31.3% in 1996. Interest expense of $62,000 for the three months ended September 30, 1996 was $24,000 lower than in the comparable period of 1995 due to the interest expense on a deferred payment to a large supplier in 1995, slightly offset by higher levels of debt outstanding in 1996. Due to lower invested cash balances in the three months ended September 30, 1996 than in the comparable period of 1995, interest income of $5,000 in 1996 is lower than the $107,000 recorded in the year earlier period. Other income of $28,000 for the quarter ended September 30, 1996 was $339,000 more favorable compared to the $311,000 of expense for the same period in 1995, due to recognition of the Companys share of net losses in 1995 in its equity investments. As a result of these changes, net income before income taxes for the quarter ended September 30, 1996 was $1.1 million versus $0.5 million of income for the same period in 1995, for an increase of $0.6 million. Income tax expense was provided at an effective rate of 43.7% for the three months ended September 30, 1996, versus 63.6% in 1995, with the decrease related primarily to the non-deductibility of the Companys share of losses and amortization of goodwill relating to its equity investments in 1995. Net income was $0.6 million for the three months ended September 30, 1996 versus net income of $0.2 million in the comparable period of 1995, representing an increase of $0.4 million. 10 On a per share basis for the quarter ended September 30, 1996, net income was $0.08 compared with net income of $0.02 in 1995. Comparison of the Nine Months Ended September 30, 1996 and 1995 - - --------------------------------------------------------------- Sales for the nine months ended September 30, 1996 were $89.4 million compared with $85.5 million for the same period a year ago, representing an increase of $3.9 million or 4.6%. Sales comparisons with the first nine months of 1995 are significantly impacted by the exceptional promotional program for a single customer of the Corporate Markets Division which began in 1994 and concluded at the end of the first quarter of 1995. The promotional program accounted for 9% of the Companys sales for the first three quarters of 1995 versus 0% in 1996. Excluding the impact of this promotional program on results for the 1995 period, sales increased 15% in the nine months ended September 30, 1996. Sales of Swiss Army Brand Watches and cutlery increased from the same period a year ago while Victorinox Original Swiss Army Knife sales decreased. Gross profit of $26.0 million for the nine months ended September 30, 1996 decreased $3.9 million or 13.1% from 1995. The decrease relates principally to a $4.5 million inventory write-off in the second quarter and the negative impact of a weaker U.S. dollar against the Swiss franc in the first quarter of 1996. The gross profit margin for the first nine months of 1996 of 29.1% was down from the margin of 35.0% reported for the same period of 1995. Excluding the inventory write-off, the gross profit margin for 1996 would have been 34.1%. The Company's gross profit margin may fluctuate due to changes in product mix and Swiss franc exchange rates. Since the Company imports virtually all of its products from Switzerland, its costs are affected by both the spot rate of exchange and by its foreign currency hedging program. 11 Selling, general and administrative expenses for the nine months ended September 30, 1996 of $29.5 million were $2.7 million or 10.1% higher than the amount for the comparable period in 1995. This increase is due primarily to higher merchandising and promotional costs. As a percentage of net sales, selling, general and administrative expenses increased from 31.3% in 1995 to 33.0% in 1996. Excluding sales associated with the special promotion program in 1995, the percentage decreased in 1996 to 31.3% from 34.5% in 1995. The Company recorded a special charge in the second quarter of $2.1 million relating to the write-off of obsolete displays, goodwill and other intangible assets. There were no special charges recorded for the comparable period in 1995. Due to lower invested cash balances in the nine months ended September 30, 1996 than in the comparable period of 1995, interest income of $107,000 in 1996 was lower than the $523,000 recorded in the year earlier period. The Company recorded a $0.8 million charge associated with the impairment of a non-strategic investment. There were no comparable investment charges for the same period in 1995. Other income of $156,000 for the nine months ended September 30, 1996 was $414,000 more favorable than the $258,000 of expense for the same period in 1995, due to recognition of the Companys share of net losses in its equity investments. As a result of these changes, loss before income taxes for the nine months ended September 30, 1996 was $6.3 million versus income of $3.3 million for the same period in 1995, a decrease of $9.6 million or 290%. Income tax expense was provided at an effective rate of 41.7% for the nine months ended September 30, 1996, versus 48.5% in 1995, with the decrease related primarily to the non-deductibility of the Companys share of losses and amortization of goodwill relating to its equity investments. Net loss was $3.7 million for the nine months ended September 30, 1996 versus net income of $1.7 million in the comparable period of 1995, representing a decrease of $5.4 million or 318%. On a per share basis for the nine months ended September 30, 1996, net loss was $0.44 compared with net income of $0.20 in 1995, a 320% decrease in earnings per share. LIQUIDITY AND CAPITAL RESOURCES - - ------------------------------- As of September 30, 1996, the Company had working capital of $53.1 million compared with $58.1 million as of December 31, 1995, a decrease of $5.0 million principally due to investments the Company made during the nine months ended September 30, 1996. Sources of working capital included depreciation and amortization of $2.3 million. Significant uses of working capital included the Company's $2.0 million increase in the preferred units of Hudson River Capital LCC and capital expenditures and additions to other assets of $3.7 million. The Company currently has no material commitments for capital expenditures. 12 Cash provided from operating activities was approximately $6.2 million in the nine months ended September 30, 1996 compared with $14.8 million of cash used in the comparable period in 1995. The cash provided from operations resulted primarily from a smaller increase in inventories in 1996 than in the prior year and a larger increase in accounts payable versus 1995. The Company meets its short-term liquidity needs with cash generated from operations, and, when necessary, bank borrowings under its revolving credit agreement. As of September 30, 1996, the Company had $0.7 million of outstanding borrowings under its revolving line of credit, leaving an unused line of $19.3 million. Of the $20 million aggregate line of credit, the expiration date for a $15 million facility has been extended to January 31, 1997. The Company's short-term liquidity is affected by seasonal changes in inventory levels, payment terms and seasonality of sales. The Company believes that cash generated from operations and borrowings under its credit facility will be sufficient to meet the Companys anticipated operating and capital needs. 13 PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K A.) Exhibits (2) Not Applicable (3) Not Applicable (4) Not Applicable (10) Extension of Revolving Line of Credit (11) Statement regarding computation of per share earnings is not required because the relevant computation can be clearly determined from the material contained in the Financial Statements included herein. (15) Not Applicable (18) Not Applicable (19) Not Applicable (22) Not Applicable (23) Not Applicable (24) Not Applicable (27) Financial Data Schedule (99) Not Applicable B.) There were no reports or exhibits on Form 8-K filed for the three months ended September 30, 1996. 14 Pursuant to the requirements to 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. SWISS ARMY BRANDS, INC. (Registrant) Date: November 9, 1996 By /s/ Thomas D. Cunningham Name: Thomas D. Cunningham Title: Executive Vice President, Principal Financial Officer and a Director By /s/ Thomas M. Lupinski Name: Thomas M. Lupinski Title: Senior Vice President, Controller 15 EX-10 2 EXTENSION OF REVOLVING LINE OF CREDIT LETTER Thomas M. Lupinski Senior Vice President, Controller October 28, 1996 Mr. Anthony Castellon Vice President Fleet Bank 157 Church Street New Haven, CT 06510 Re: Extension of Revolving Line of Credit Dear Tony: To confirm our telephone conversion of October 25, 1996, Swiss Army Brands, Inc. hereby requests a 3 month extension of the maturity date of its $15 million revolving line of credit for 3 months to January 31, 1997 under the same terms as the existing agreement. Please confirm Fleet's acceptance of our request by signing the enclosed copy of this letter and returning it to me via fax and hard copy at your earliest convenience. If you have any questions, please give me a call. Sincerely, Thomas Lupinski TML/ls ACCEPTED: By: Signature Date Name: Anthony H. Castellon Its: Vice President EX-27 3 FDS
5 0000731947 Swiss Army Brands, Inc. 1,000 Us Dollars 9-MOS DEC-31-1996 JUL-01-1996 SEP-30-1996 1 2,104 0 28,513 860 34,695 72,180 9,674 5,637 100,815 19,118 0 0 0 882 80,814 100,815 89,372 89,372 63,394 31,610 (536) 0 (104) (6,272) (2,613) (3,660) 0 0 0 (3,660) (.44) (.44)
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