-----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, Q9NXhxOMogWadjuSPRUodPrn8HnS+uUgJhWcD4VpQ7Z8WwPlMqmhW8Rrx8YuK88r YP8HcisHB26G7Ywx3eSMvA== 0000077326-96-000018.txt : 19960802 0000077326-96-000018.hdr.sgml : 19960802 ACCESSION NUMBER: 0000077326-96-000018 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960524 FILED AS OF DATE: 19960801 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/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-05548 FILM NUMBER: 96602149 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/A 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 May 24, 1996 Commission File No. 1-5548 Purpose: To amend in its entirety the quarter ended May 24, 1996 10-Q due to an error in the current year treasury stock reported on the condensed balance sheet table. 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 1,469,917 shares, $1 par value, was outstanding at May 24, 1996 PENOBSCOT SHOE COMPANY CONDENSED BALANCE SHEET (In thousands)
February 23, 1996 November 24, 1995 (Unaudited) (Note (a)) CURRENT ASSETS: Cash & Cash Equivalents $2,150 $1,301 Marketable Securities 3,240 3,271 Refundable income taxes - - Accounts receivable 2,218 3,492 Inventories (Note 2) 3,121 3,054 Other current assets 587 341 _______ _______ TOTAL CURRENT ASSETS $11,316 $11,459 PROPERTY AND EQUIPMENT, AT COST: Buildings $1,412 $1,413 All Other 1,631 1,617 Less accumulated depreciation and amortization 2,711 2,660 _______ _______ NET PROPERTY AND EQUIPMENT $333 $369 _______ _______ TOTAL ASSETS $11,649 $11,828 ======= ======= LIABILITIES AND SHAREHOLDERS' EQUITY: CURRENT LIABILITIES: Accounts payable $773 $791 Other current liabilities 396 496 _______ _______ TOTAL CURRENT LIABILITIES $1,170 $1,287 DEFERRED INCOME TAXES $146 $146 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 7,774 7,667 Add net unrealized gain on available-for-sale securities (Note (b)) 249 356 Less treasury stock at cost 63,125 and 50,925 shares; 333 270 NET SHAREHOLDERS' EQUITY _______ _______ (Note 3) $10,333 $10,395 TOTAL LIABILITIES AND SHARE- _______ _______ HOLDERS' EQUITY $11,649 $11,828 ======= ======= Note: (a) The balance sheet at November 24, 1995, 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 For the Second Quarter Ended Six Months Ended May May May May 24, 1996 26, 1995 24, 1996 26, 1995 Net Sales $3,024 $2,455 $7,249 $5,575 Cost and operating expenses: Cost of sales 2,073 1,629 4,913 3,695 Selling and administrative expenses 1,034 1,018 2,184 2,104 _______ _______ _______ _______ Operating income (loss) (83) (192) 152 (224) Other income 131 142 269 195 _______ _______ _______ _______ Income before income taxes 48 (50) 421 (29) Income taxes 17 (23) 166 (16) _______ _______ _______ _______ Net income $ 31 ($27) $255 ($13) ======= ======= ======= ======= Per Common Share: Net income $0.02 ($0.02) $0.17 ($0.01) Dividends 0.05 0.05 0.05 0.05 Average number of common shares outstanding 1,474,265 1,482,117 1,478,169 1,482,117 See notes to the condensed financial statements.
PENOBSCOT SHOE COMPANY STATEMENT OF CASH FLOWS For Six Months Ended May 24, 1996 and May 26, 1995 (In thousands)
1996 1995 Cash flows from operating activities: Net cash provided (used) by operating activities $ 1,074 $1,685 Cash flows from investing activities: Proceeds from sale of assets 0 0 Capital expenditures (14) (10) _______ _______ Net cash provided (used) by investing activities (14) (10) Cash flows from financing activities: Dividends paid (148) (148) Purchase of treasury stock (63) 0 Net cash provided (used) by _______ _______ financing activities (211) (148) Net increase (decrease) in _______ _______ cash and cash equivalents 849 1,527 Cash and cash equivalent at beginning of period 1,301 1,308 Cash and cash equivalent at _______ _______ end of period $2,150 $ 2,637 ======= ======= Supplemental Disclosure of Cash Flow Information Cash paid during the period for: Interest $0 $0 Income taxes 438 118
PENOBSCOT SHOE COMPANY NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited) 1. CONDENSED FINANCIAL STATEMENTS The condensed balance sheet as of May 24, 1996, the statements of income for the second quarter periods ended May 24, 1996 and May 26, 1995, and the condensed statements of cash flows for the six-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 May 24, 1996 and for the other periods presented. The results of operations for the period ended May 24, 1996 are not necessarily indicative of operating results for the full year. 2. INVENTORIES Inventories are summarized as follows (in thousands):
5/24/96 11/24/95 5/26/95 FIFO Cost: finished shoes $3,630 $3,355 $3,530 shoes in process 4 22 24 raw materials 215 232 393 _______ _______ _______ $3,849 $3,609 $3,947 Excess of FIFO cost over LIFO inventory value (728) (555) (927) _______ _______ _______ $3,121 $3,054 $3,020 ======= ======= =======
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 six months ended May 24, 1996, shareholders' equity changed due to net income of $255,000, dividends declared of $ 148,000 , purchases of treasury stock of $63,000 and a decrease of $107,000 resulting from a decrease in the net unrealized gain on available-for-sale securities held by the Company. Effective November 26, 1994, the Company adopted Statement of Financial Accounting Standards No. 115, "Accounting for Certain Investments in Debt and Equity Securities", necessitating the inclusion of this net unrealized gain on the balance sheet. PENOBSCOT SHOE COMPANY MANAGEMENT DISCUSSION AND ANALYSIS OF THE SUMMARY OF OPERATIONS Liquidity and Capital Resources: At May 24, 1996, Penobscot Shoe Company had working capital of approximately $10,147,000 versus approximately $10,172,000 at November 24, 1995, a decrease of $25,000. The ratio of current assets to current liabilities at May 24, 1996, was 9.7 to 1, compared to 8.9 to 1, at November 24, 1995. The statement of cash flows for the six months ended May 24, 1996, shows an increase of $849,000 in cash and cash equivalents since November 24, 1995. The Company's operations provided $1,074,000 since November 24, 1995, primarily due to seasonal fluctuations in accounts receivable. The Company's quarterly dividend amounted to a use of $148,000 during the period, purchases of treasury shares used $63,000 and capital expenditures for equipment amounted to a further use of $14,000 during the period. The decreases in the Company's accounts receivable and other current liabilities, and the increase in other current assets since November 24, 1995, were the result of ordinary fluctuations. 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 second quarter ended May 24, 1996, were $3,024,000, up 23% from $2,455,000 in the same quarter last year. Net income for the current quarter was $31,000, or $.02 per share, compared to a net loss of $27,000, or $.01 per share, a year ago. For the six months ended May 24, 1996, net sales were $7,249,000, up 30% from $5,575,000 a year ago. Net income for the year-to-date period was $255,000, or $.17 per share, versus a net loss of $13,000, or $.01 per share, incurred last year. The significant increase in second quarter net sales compared to last year was the result of both volume and price factors. Most of the sales increase was due to higher volume, fueled primarily by strong reorders of Spring 96 merchandise. Higher average prices accounted for the balance of the total sales increase, primarily due to product mix rather than price increases. Continued growth in the second half will be contingent on sustained strength in the retail environment. Cost of sales was 68.5% of net sales in the second quarter compared to 66.3% a year ago resulting in gross profit margins of 31.5% and 33.7% in the 1996 and 1995 quarters, respectively. Last year's quarter benefited from a Results of Operations Continued: particularly low level of surplus sales while the current year's surplus sales were at a more normal level. Selling and administrative costs were slightly higher than a year ago due to costs variable on sales. Other income in the second quarter of 1996 was $131,000, pre-tax, compared to $142,000 in the same quarter last year. Both the current quarter and last year's second quarter benefited from gains on the sales of securities which totalled approximately $76,000, pre-tax. 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: August 1, 1996 Paul Hansen _________________________ By: Paul Hansen President and Chief Executive Officer Date: August 1, 1996 David L. Keane ________________________ By: David L. Keane Vice President/Finance and Administration EX-27 2 ARTICLE 5 FIN. DATA SCHEDULE FOR 2ND 10-Q
5 1000 6-MOS NOV-29-1996 MAY-24-1996 2,150 3,240 2,218 (537) 3,121 11,316 3,043 2,711 11,649 1,170 0 1,533 0 0 8,799 11,649 7,249 7,249 4,913 7,097 0 0 (269) 421 166 255 0 0 0 255 .17 .17
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