UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
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CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 30, 2020
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National Presto Industries, Inc.
(Exact name of registrant as specified in this chapter)
| Wisconsin | 1-2451 | 39-0494170 | ||
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
|
3925 North Hastings Way Eau Claire, Wisconsin |
54703-3703 | |
| (Address of principal executive office) | (Zip Code) |
Registrant’s telephone number, including area code: 715-839-2121
N/A
(Former name or former address, if changed since last report)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13a-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock, $1.00 par value | NPK | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On April 30, 2020, the registrant issued a press release regarding the registrant’s results of operations for the fiscal quarter ended March 29, 2020. The full text of the press release is filed as Exhibit 99.1 to this Form 8-K. Such Exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| Exhibit No. | Description |
| 99.1 | Press Release of National Presto Industries, Inc. dated April 30, 2020 |
Forward looking statements in this Form 8-K are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. There are certain important factors that could cause results to differ materially from those anticipated by some of the statements made herein. Investors are cautioned that all forward looking statements involve risks and uncertainty. In addition to the factors discussed above, among the other factors that could cause actual results to differ materially are the following: government defense spending and defense requirements; termination for the convenience of the government; interest rates; continuity of relationships with and purchases by the United States Government and other major customers; unexpected problems or events experienced by subcontractors, team members, or their respective suppliers or subcontractors; product mix; competitive pressure on pricing; increases in material, freight/shipping, labor or other production costs that cannot be recouped through pricing; and such other factors as may be described from time to time in the Registrant’s SEC filings.
SIGNATURE
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 undersigned hereunto duly authorized.
| National Presto Industries, Inc. | |||||
| (Registrant) | |||||
| Date: May 1, 2020 | By: | /s/ Maryjo Cohen | |||
| (Signature) Maryjo Cohen, President | |||||
| and Chief Executive Officer | |||||
Exhibit 99.1
| NEWS RELEASE | CONTACT: David Peuse |
| FOR IMMEDIATE RELEASE | (715) 839-2146 |
NATIONAL PRESTO INDUSTRIES, INC. ANNOUNCES
FIRST QUARTER 2020 INCREASED SALES AND EARNINGS
Eau Claire, Wisconsin (April 30, 2020) — National Presto Industries, Inc. (NYSE: NPK) announced today first quarter 2020 sales and earnings as shown in the table below. Net earnings per share have been computed on the basis of the weighted average number of common shares outstanding for the respective periods.
In response to questions about the sales and earnings for the quarter, Maryjo Cohen, President, stated, “All three of the Company’s segments are deemed “essential” businesses by the states in which they are located. As a result, despite the challenges posed by the coronavirus (COVID-19) shutdown orders, the three segments have been able to maintain operations. No employees have been furloughed. Although customer logistics were a challenge, in particular for the Housewares/Small Appliance segment, shipments continued throughout the quarter. For the Defense segment, net sales increased by $1.6 million or 3.7%. Those for the Housewares/Small Appliance segment were likewise up, however, by a nominal $128,000 or 0.7%. Operating earnings increased from prior year levels with Defense up $3.1 million, a 40.8% increase over the prior year’s quarter due in part to the sales increase and increased efficiencies, but primarily to a more favorable sales mix. The Housewares/Small Appliance segment experienced a reduced operating loss from that reported the prior year. The startup Safety segment had nominal sales and, as expected, an operating loss. The combination of a reduced investment portfolio vis-à-vis the prior year and the reduced yields occasioned by the three Federal Reserve rate reductions in 2019, and the drastic COVID-19 drop in 2020 resulted in a 22.4% reduction in other income.”
The Housewares/Small Appliance segment had planned to introduce four new products at the March 2020 International Housewares Show. As a result of the COVID-19 pandemic, that show was cancelled, delaying the official introduction until this release. All four products fit well into the “stay safe” mentality which is expected to continue to result in more cooking at home. Two of the 2020 introductions are slated for major national advertising support this fall. Three have patents pending.
The first of the nationally advertised products is the Stuffler™ stuffed waffle maker. The Stuffler™ bakes incredibly delicious Belgian-style waffle with toppings stuffed inside. As a result of the Stuffler™, waffles are no longer just for breakfast, but also make a tasty hot lunch, hearty dinner, or delightful snack. The stuffed waffle maker works with most any batter, from traditional commercial and homemade waffle mixes to cake, quick breads, potato-based, and nut-based batters, to bread, tacos, and even egg/cheese mixtures for delicious stuffed chaffles. In terms of stuffing, the only limit is the user’s imagination. Selecting the stuffing is a fun family activity. The possibilities run the gamut—fresh fruits, jams, jellies, pie fillings, meats, poultry, fish, cheese, eggs, vegetables, and nuts, as well as most any dessert ingredient including caramel, chocolate, marshmallows, and cheesecake. The Stuffler™ is also easy and convenient to use. The rotating design flips 180° degrees to evenly spread the batter, ensuring waffles that are crispy on the outside and tender inside. The Stuffler™ tongs provide a handy means to lift, remove, and serve the finished waffle. Even storage is a breeze. The Stuffler™ locks in a vertical position, and its cord stores in the base.
The second product is the Dorothy™ rapid cold brewer. The Dorothy™ makes 22 ounces of delicious cold brew in minutes at home. Using a patent pending technology, the Dorothy™ rapidly spins coffee grounds through a “tornado” of water for quick flavor extraction, eliminating the long 12- to 24- hour wait required by traditional cold brewers or the need to visit a coffee shop. The resulting coffee is smooth and flavorful without a bitter taste because the coffee grounds are never exposed to high temperatures. The spinning water rapidly circulates coffee grounds for complete flavor extraction in as little as 15 minutes. Cleanup is easy as well. The carafe, filter, and grounds cup are dishwasher safe, and the cord detaches from the power base for easy storage.
In addition to these products, the Company will be introducing in 2020 its 12-quart Presto Precise™ digital pressure canner, the first digital canner to process food in accordance with the USDA Complete Guide to Home Canning. Pressure canning is the only method recommended by the USDA for safely canning low-acid foods like vegetables, meats, poultry, fish, and spaghetti sauce. The new canner uses patent-protected technology that includes an innovative sensor that automatically holds the precise processing temperature (240°F) required for safe processing. The canner’s LED display icons guide the user through each step of the process ensuring proper preheating of jars, full venting of air from the jars, and maintenance of the proper temperature throughout the process for the appropriate length of time. Because the sensor monitors temperature rather than pressure, there is no need to adjust pressure based on altitude. Best of all, there is also no need to stand over a hot stove on a warm summer day monitoring gauges or regulators. The canner handles both temperature regulation and timing automatically. The digital canner also contains technology enabling its use as a water bath canner for high-acid food. The temperature sensor detects the boiling point and activates the process, automatically holding the temperature at boiling throughout the required time to preserve fruits, jams, jellies, pickles, and salsa. The canner holds five quart, eight pint, or ten half-pint standard jars. Like the smaller pressure cookers in the Presto Precise™ line, the new canner is beautifully styled, and features a black stainless steel finish.
Finally, the Company is offering its Power Bento™ electric cooker, a compartmentalized “cook, heat, and eat” product that cooks ramen, eggs, and vegetables in minutes. It is also ideal for heating soups and stews. It’s the perfect size for one or two servings, ideal for singles or college students. The Bento™ is designed to be eaten out of as well and includes a spoon and fork for that purpose. The product also comes with a two-egg holder and on-board cord storage.
National Presto Industries, Inc. operates in three business segments. The Housewares/Small Appliance segment designs and sells small household appliances and pressure cookers under the PRESTO® brand name. The segment is recognized as an innovator of new products. The Defense segment manufactures a variety of products, including medium caliber training and tactical ammunition, energetic ordnance items, fuzes, and cartridge cases. The Safety Segment currently consists of two startup companies. The first is Rusoh, Inc., which designs and markets the Rusoh® Eliminator® fire extinguisher, the first self-service fire extinguisher. The second is OneEvent Technologies, Inc. It offers systems that provide early warning of conditions that could ultimately lead to significant losses.
| THREE MONTHS ENDED | ||||
| March 29, 2020 | March 31, 2019 | |||
| Net Sales | $ | 65,636,000 | $ | 63,850,000 |
| Net Earnings | $ | 8,222,000 | $ | 5,951,000 |
| Net Earnings Per Share | $ | 1.17 | $ | .85 |
| Weighted Average Shares Outstanding | 7,028,000 | 7,014,000 | ||
This release contains “forward looking statements” made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995 that are subject to certain risks and uncertainties, as well as assumptions, that could cause actual results to differ materially from historical results and those presently anticipated or projected. In addition to the factors discussed above, other important risk factors are delineated in the Company’s various SEC filings.