-----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, Kn2ck8LFOmL0PGm73T/k349csfY1u58v1dlP4s+ElBA4ZA+El+eEODPY2hXqT/8I iB0RWjxVa/ur9d8WC37Cuw== 0000077326-97-000010.txt : 19970415 0000077326-97-000010.hdr.sgml : 19970415 ACCESSION NUMBER: 0000077326-97-000010 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970228 FILED AS OF DATE: 19970414 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: PENOBSCOT SHOE CO CENTRAL INDEX KEY: 0000077326 STANDARD INDUSTRIAL CLASSIFICATION: FOOTWEAR, (NO RUBBER) [3140] IRS NUMBER: 010139580 STATE OF INCORPORATION: ME FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-05548 FILM NUMBER: 97579630 BUSINESS ADDRESS: STREET 1: 450 NORTH MAIN ST CITY: OLD TOWN STATE: ME ZIP: 04468 BUSINESS PHONE: 2078274431 MAIL ADDRESS: STREET 1: PENOBSCOT SHOE CO STREET 2: P O BOX 545 CITY: OLD TOWN STATE: ME ZIP: 04468 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended February 28, 1997 Commission File No. 1-5548 Penobscot Shoe Company (Exact name of registrant as specified in its charter) Maine (State or other jurisdiction of incorporation or organization) 01-0139580 (IRS Employer identification no.) 450 North Main Street, Old Town Maine (Address of principal executive offices) 04468 (Zip code) Not Applicable (Former name, former address and former fiscal year, if changed since last report) Registrant's telephone number, including area code: (207) 827-4431 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, and (2) has been subject to such filing requirements for the past 90 days. Yes __X__ No _____ Common stock of 1,395,165 shares, $1 par value, was outstanding at February 28, 1997 PENOBSCOT SHOE COMPANY CONDENSED BALANCE SHEET (In thousands)
February 28, 1997 November 29, 1996 (Unaudited) (Note (a)) CURRENT ASSETS: Cash & Cash Equivalents $1,049 $ 548 Marketable Securities 3,319 3,299 Accounts receivable 3,393 3,319 Inventories (Note 2) 3,632 4,036 Other current assets 450 433 _______ _______ TOTAL CURRENT ASSETS $11,842 $11,635 PROPERTY AND EQUIPMENT, AT COST: Buildings $1,417 $1,417 All Other 511 368 Less accumulated depreciation and amortization 1,604 1,584 _______ _______ NET PROPERTY AND EQUIPMENT $324 $201 _______ _______ TOTAL ASSETS $12,166 $11,836 ======= ======= LIABILITIES AND SHAREHOLDERS' EQUITY: CURRENT LIABILITIES: Accounts payable $965 $502 Other current liabilities 529 741 _______ _______ TOTAL CURRENT LIABILITIES $1,494 $1,243 DEFERRED INCOME TAXES $ 99 $ 99 SHAREHOLDERS' EQUITY: Common stock, $1 par value: authorized 2,000,000 shares: issued 1,533,042 $1,533 $1,533 Capital in excess of par value 1,109 1,109 Retained earnings 8,313 8,234 Add net unrealized gain on available-for-sale securities (Note (b)) 355 355 Less treasury stock at cost 137,877 shares; 737 737 NET SHAREHOLDERS' EQUITY _______ _______ (Note 3) $10,573 $10,494 TOTAL LIABILITIES AND SHARE- _______ _______ HOLDERS' EQUITY $12,166 $11,836 ======= ======= Note: (a) The balance sheet at November 29, 1996, has been derived from the audited financial statements at that date. (b) The Company adopted Statement of Accounting Standard No. 115 "Accounting for Certain Investments in Debt and Equity Securities" effective November 26, 1994. See notes to the condensed financial statements.
PENOBSCOT SHOE COMPANY STATEMENT OF INCOME (In thousands, except per share amounts) (Unaudited)
For the Three Months Ended February February 28, 1997 23, 1996 Net Sales $4,103 $4,225 Cost and operating expenses: Cost of sales 2,773 2,840 Selling and administrative expenses 1,146 1,150 _______ _______ Operating income 183 235 Other income 62 138 _______ _______ Income before income taxes 246 373 Income taxes 97 149 _______ _______ Net income $149 $224 ======= ======= Per Common Share: Net income $0.11 $0.15 Dividends 0.05 0.05 Average number of common shares outstanding 1,395,165 1,482,117 See notes to the condensed financial statements.
PENOBSCOT SHOE COMPANY STATEMENT OF CASH FLOWS For Three Months Ended February 28, 1997 and February 23, 1996 (In thousands)
1997 1996 Cash flows from operating activities: Net cash provided (used) by operating activities $ 713 $ (255) Cash flows from investing activities: Proceeds from sale of assets 0 0 Capital expenditures (142) (10) _______ _______ Net cash provided (used) by investing activities (142) (10) Cash flows from financing activities: Dividends paid (70) (74) Purchase of treasury stock 0 0 Net cash provided (used) by _______ _______ financing activities (70) (74) Net increase (decrease) in _______ _______ cash and cash equivalents 501 (339) Cash and cash equivalent at beginning of period 548 1,301 Cash and cash equivalent at _______ _______ end of period $1,049 $ 962 ======= ======= Supplemental Disclosure of Cash Flow Information Cash paid during the period for: Interest $0 $0 Income taxes 193 119
PENOBSCOT SHOE COMPANY NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited) 1. CONDENSED FINANCIAL STATEMENTS The condensed balance sheet as of February 28, 1997, the statements of income for the first quarter ended February 28, 1997 and February 23, 1996, and the condensed statements of cash flows for the three-month periods then ended have been prepared by the Company, without audit. In the opinion of management, all necessary adjustments, which include normal recurring adjustments, have been made to present fairly the financial position, results of operations, and cash flows at February 28, 1997 and for the other periods presented. The results of operations for the period ended February 28, 1997 are not necessarily indicative of operating results for the full year. 2. INVENTORIES Inventories are summarized as follows (in thousands):
2/28/97 11/29/96 2/23/96 FIFO Cost: finished shoes $3,840 $4,465 $3,809 shoes in process 0 0 40 raw materials 18 20 205 _______ _______ _______ $3,858 $4,485 $4,054 Excess of FIFO cost over LIFO inventory value (227) (449) (765) _______ _______ _______ $3,632 $4,036 $3,289 ======= ======= =======
The Company uses the LIFO method because it more realistically reflects operating results by charging current costs against current revenues. 3. SHAREHOLDERS' EQUITY During the three months ended February 28, 1997, shareholders' equity changed due to the net income of $149,000 and dividends declared of $70,000. PENOBSCOT SHOE COMPANY MANAGEMENT DISCUSSION AND ANALYSIS OF THE SUMMARY OF OPERATIONS Liquidity and Capital Resources: At February 28, 1997, Penobscot Shoe Company had working capital of approximately $10,348,000 versus approximately $10,392,000 at November 29, 1996, a decrease of $44,000. The ratio of current assets to current liabilities at February 28, 1997, was 7.9 to 1, compared to 9.4 to 1, at November 29, 1996. The statement of cash flows for the three months ended February 28, 1997, shows an increase of $501,000 in cash and cash equivalents since November 29, 1996. The Company's operations provided $713,000 since November 29, 1996, primarily due to seasonal fluctuations in inventory. The Company's quarterly dividend amounted to a use of $70,000 during the period and capital expenditures for equipment amounted to a further use of $142,000 during the period. The decrease in the Company's inventory, as well as the increases in accounts payable, accounts receivable and other current assets since November 29, 1996, were the result of ordinary fluctuations. The increase in property and equipment reflects the purchase of new data processing equipment and the upgrading of existing equipment. Management believes that Penobscot Shoe Company remains financially well structured to consider a variety of financing options should the need arise and will make choices depending on economic conditions at the time. Options available include conversion of marketable securities held by the Company into cash and cash equivalents. The Company also has an established line of credit with a major bank available for direct borrowing at the prime rate should the need arise. Results of Operations: Net sales for the quarter ended February 28, 1997, were $4,103,000, down 3% from $4,225,000 last year. Net income for the current quarter was $149,000, or $.11 per share, compared to $224,000, or $.15 per share, a year ago. The current quarter's net income benefited from a LIFO gain of approximately $116,000, or $.08 per share. There was no such gain during this period a year ago. The current quarter's net income also benefited by $6,000, or less than $.01 per share, from gains on the sales of securities. Such gains contributed $48,000, or $.03 per share, to earnings a year ago. The decrease in net sales in the first quarter was due in part to a poor winter boot season compared to an unusually strong season a year ago. Retailer requests for later delivery of Spring merchandise also adversely affected net sales. This timing difference should be offset in the second quarter. Other income in the first quarter of 1997 was $62,000, pre-tax, compared to $138,000 in the same quarter last year. Gains from the sale of securities contributed $48,000, or $.03 per share to last years earnings. Such gains in the current year amounted to only $6,000, or less than $.01 per share. PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (a) Exhibits Exhibit 27. Financial Data Schedule (b) Reports on Form 8-K No reports on Form 8-K have been filed during the last quarter of the period covered by this report. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the under- signed thereunto duly authorized. Penobscot Shoe Company _________________________ (Registrant) Date: March 31, 1997 Paul Hansen _________________________ By: Paul Hansen President and Chief Executive Officer Date: March 31, 1997 David L. Keane _________________________ By: David L. Keane Vice President/Finance and Administration EX-27 2 ARTICLE 5 FIN. DATA SCHEDULE FOR 1ST QTR 10-Q
5 1000 3-MOS NOV-28-1997 FEB-28-1997 1,049 3,319 3,895 (502) 3,632 11,842 1,928 1,604 12,166 1,494 0 1,533 0 0 9,422 12,166 4,103 4,103 2,773 3,919 0 0 (62) 246 97 149 0 0 0 149 .11 .11
-----END PRIVACY-ENHANCED MESSAGE-----