-----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, KHRdOKOtsbX5Anan20oC908pEmyGWxyU6bn3rrYLw4DLKumnOMB81CciA3mzhoAb KGu4Nc6VQP00K+q3NgMETg== 0000912057-95-009449.txt : 19951109 0000912057-95-009449.hdr.sgml : 19951109 ACCESSION NUMBER: 0000912057-95-009449 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951108 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: SCHULT HOMES CORP CENTRAL INDEX KEY: 0000803349 STANDARD INDUSTRIAL CLASSIFICATION: PREFABRICATED WOOD BLDGS & COMPONENTS [2452] IRS NUMBER: 351608892 STATE OF INCORPORATION: IN FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-10532 FILM NUMBER: 95588095 BUSINESS ADDRESS: STREET 1: 221 US 20 WEST STREET 2: P O BOX 151 CITY: MIDDLEBURY STATE: IN ZIP: 46540 BUSINESS PHONE: 2198255881 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended September 30, 1995 Commission File Number 0-15506 ------- Schult Homes Corporation ------------------------------------------------------ (Exact name of registrant as specified in its charter) Indiana 35-1608892 - ------------------------------- ------------------------------------ (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 221 U.S. 20 West, Middlebury, Indiana 46540 ----------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code 219-825-5881 ------------ 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 XX NO --------- --------- The number of common shares outstanding, as of September 30, 1995 was 3,731,032. SCHULT HOMES CORPORATION FORM 10-Q PERIOD ENDED SEPTEMBER 30, 1995 PART I. Financial Information Item 1. Financial Statements A. Schult Homes Corporation and Subsidiaries Condensed Consolidated Financial Statements B. Notes to the Condensed Consolidated Financial Statements Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations PART II. Other Information Item 1. Legal Proceedings --- Inapplicable Item 2. Changes in Securities --- Inapplicable Item 3. Defaults upon Senior Securities --- Inapplicable Item 4. Submission of Matters to a Vote of Security Holders --- Inapplicable Item 5. Other Information --- Inapplicable Item 6. Exhibits and Reports on Form 8-K (a) Exhibits (1) Amended and Restated Articles of Incorporation of the Company incorporated by reference from fiscal year 1996 Form 10-K (2) Bylaws of the Company incorporated by reference from fiscal year 1996 Form 10-K (3) Net Earnings per Share of the Company incorporated by reference from fiscal year 1996 Form 10-K (b) There were no reports on Form 8-K filed for the three month period ended September 30, 1995. 2 SCHULT HOMES CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 1995 AND JULY 1, 1995 ASSETS
SEPT. 30, 1995 JULY 1, 1995 -------------- ------------ (unaudited) (audited) (thousands of dollars) Cash ........................................ $ 4,297 $ 4,566 Accounts receivable, less allowance for doubtful accounts of $105 in September 1995 and $67 in July 1995........................ 15,135 14,154 Inventories (note 1)......................... 13,781 15,095 Other current assets......................... 4,427 4,603 --------- --------- Total current assets...................... 37,640 38,418 Property, plant, and equipment............... 34,018 34,235 Other assets................................. 2,552 2,680 --------- --------- Total assets.............................. $74,210 $75,333 --------- --------- --------- --------- LIABILITIES AND SHAREHOLDERS' EQUITY Trade accounts payable....................... $11,741 $14,664 Accrued liabilities.......................... 23,759 20,977 Current portion of long-term debt............ 1,000 1,000 --------- --------- Total current liabilities................. 36,500 36,641 Deferred income taxes........................ 3,025 3,025 Long-term debt............................... 1,142 3,695 --------- --------- Total liabilities......................... 40,667 43,361 Shareholders' equity: Common shares, no par value, 10,000,000 shares authorized, 3,731,032 shares issued and outstanding in September 1995 and 3,746,032 in July 1995..................... 7,719 7,884 Retained earnings........................... 25,824 24,088 --------- --------- Total shareholders' equity................ 33,543 31,972 --------- --------- Total liabilities and shareholders' equity................................... $74,210 $75,333 --------- --------- --------- ---------
See accompanying notes to condensed consolidated financial statements. 3 SCHULT HOMES CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (DOLLAR IN THOUSANDS, EXCEPT PER SHARE) (UNAUDITED)
THREE MONTHS ENDED SEPT. 30, 1995 OCT. 1, 1994 -------------- ------------ Net sales............................... $ 80,482 $ 71,908 Cost of goods sold...................... 64,062 58,584 -------- -------- Gross profit......................... 16,420 13,324 Selling, general, and administrative expenses................ 13,144 10,641 ------- ------- Operating income..................... 3,276 2,683 Interest income......................... 7 2 Other income............................ 6 11 Interest expense........................ ( 54) ( 91) ------- ------- Income before income taxes........... 3,235 2,605 Income taxes: Federal................................ 994 804 State.................................. 356 286 ------- ------- Net income........................... $ 1,885 $ 1,515 -------- --------- -------- --------- PER SHARE DATA: (NOTE 2) Net income per common share............. $ 0.50 $ 0.40 ---------- --------- ---------- --------- Dividends paid per common share......... $ 0.04 $ 0.04 --------- --------- --------- --------- Average shares outstanding.............. 3,740,905 3,772,743 --------- --------- --------- ---------
See accompanying notes to condensed consolidated financial statements. 4 SCHULT HOMES CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (DOLLARS IN THOUSANDS) (UNAUDITED)
THREE MONTHS ENDED SEPT. 30, OCT. 1, 1995 1994 -------- ------- Cash flows from operating activities: Net income..............................................$ 1,885 $ 1,515 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation of plant and equipment................... 858 774 Changes in assets and liabilities: Increase in accounts receivable...................... ( 981) ( 528) (Increase) decrease in inventories................... 1,314 ( 27) Decrease in other assets............................. 304 186 Decrease in trade accounts payable................... (2,923) (1,782) Increase in accrued liabilities...................... 2,782 835 ------- ------ Total adjustments....................................... 1,354 ( 542) ------- ------ Net cash provided by operating activities............. 3,239 973 Cash flows from investing activities: Capital expenditures, net of retirements................ ( 641) (1,721) ------- ------- Net cash used in investing activities................. ( 641) (1,721) Cash flows from financing activities: Repayment of long-term debt............................. (2,553) ( 248) Payment for repurchased shares.......................... ( 165) - Dividends declared to common shareholders............... ( 149) ( 151) -------- ------- Net cash used in financing activities................. (2,867) ( 399) Net decrease in cash..................................... ( 269) (1,147) Cash at beginning of the quarter......................... 4,566 1,774 ------- ------- Cash at end of the quarter...............................$ 4,297 $ 627 ------- ------- ------- ------- Supplemental disclosures of cash flow information: Cash paid during the period for: Interest...............................................$ 94 $ 91 Income taxes........................................... 569 1,023
See accompanying notes to condensed consolidated financial statements. 5 SCHULT HOMES CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (1) INVENTORIES The components of inventories are as follows:
SEPT. 30, JULY 1, 1995 1995 -------- ------- (thousands of dollars) Raw material........... $10,043 $11,165 Work in process........ 2,261 2,352 Finished goods......... 1,477 1,578 ------- ------- Total............... $13,781 $15,095 -------- -------- -------- --------
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NET EARNINGS PER COMMON SHARE Net earnings per common share is calculated by dividing net income by the weighted average number of common shares and common share equivalents outstanding during the period. (3) INTERIM FINANCIAL STATEMENTS The Company's quarterly sales and operating results are principally affected by the seasonal nature of the Company's business. Historically, the Company's sales and operating results are at their lowest levels in the fiscal third quarter, when weather conditions have an adverse impact on both orders and shipments. In the opinion of Company management, the interim financial statements reflect all adjustments, consisting only of normal recurring accruals, which are necessary for a fair statement of the results for the interim periods presented. Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS The following table sets forth selected items of the Company's statement of operations as a percentage of net sales for the periods indicated.
PERCENTAGE OF NET SALES THREE MONTHS ENDED ------------------ SEP 30, OCT. 1, 1995 1994 -------- -------- Net sales................................. 100.0% 100.0% Cost of goods sold........................ 79.6 81.5 ----- ----- Gross profit........................... 20.4 18.5 Selling, general & administrative expenses 16.3 14.8 ----- ----- Operating income ...................... 4.1 3.7 Interest and other income................. 0.0 0.0 Interest expense.......................... (0.1) (0.1) ----- ----- Income before income taxes............. 4.0 3.6 Income taxes.............................. 1.7 1.5 ----- ----- Net income ............................ 2.3 2.1 ----- ----- ----- -----
THREE MONTHS ENDED SEPTEMBER 30, 1995 COMPARED TO THREE MONTHS ENDED OCTOBER 1, 1994. NET SALES in the first quarter of fiscal 1996 were $80.5 million, which represented an increase of $8.6 million (11.9%) from the first quarter of fiscal 1995. This increase in sales was due to utilization of our plant expansions, strong market conditions and increased selling price. 6 The average selling price per section increased by 2.5% from the same time a year earlier. Total sections sold in the first quarter of fiscal 1996 were 3,851, an increase of 324 sections (9.2%) from the prior year period. Multi- section homes represented 60.7% of the homes sold during the first quarter of fiscal 1996, compared to 68.5% in fiscal 1995. COST OF GOODS SOLD in the first quarter of fiscal 1996 was $64.1 million, which represented an increase of $5.5 million (9.4%) from the first quarter of fiscal 1995. Cost of goods sold as a percentage of net sales decreased from 81.5% in fiscal 1995 to 79.6% in fiscal 1996. This decrease in cost of goods sold was principally due to decreased labor and material costs. SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES for the first quarter of fiscal 1996 were $13.1 million, which represented an increase of $2.5 million (23.5%) from fiscal 1995. As a percentage of net sales, these expenses increased to 16.3% from 14.8% in the prior year period. This was principally the result of increased warranty service costs. This increase was caused by an effort to reduce the backlog of warranty service and to reduce the warranty service interval, which should not be reoccurring to this extent. The Company earned an operating income of $3.3 million in the first quarter of fiscal 1996 or 4.1% of net sales. This compares to an operating income of $2.7 million or 3.7% of net sales in the prior year period. Interest and other income contributed $13,000 to earnings in the first quarter of fiscal 1996, compared to $13,000 in the first quarter of fiscal 1995. Interest expense for the first quarter of fiscal 1996 was $54,000, compared to $91,000 in the first quarter of fiscal 1995. Net income in the current quarter was $1.9 million ($0.50 per common share), compared to a net income of $1.5 million ($0.40 per common share) in the first quarter of fiscal 1995. LIQUIDITY AND CAPITAL RESOURCES At the end of the current quarter, the Company had no outstanding borrowings under its credit facility, which was a decrease of $2.3 million from the balance at July 1, 1995. At the end of the quarter, total long-term debt was $1.1 million, a decrease of $2.6 million compared to the balance at July 1, 1995. The Company's unsecured credit facility expiring January 31, 1997 permits borrowings of up to $10,000,000. The Company has access to additional bank financing up to $3,000,000 for seasonal use, if needed. Capital expenditures for the first quarter of fiscal 1996 were $641,000, compared to $1,721,000 from the prior year period. The Company expects that funds generated from operations combined with funds available under long-term secured financing arrangements and its revolving credit facility will be adequate to support its capital expenditure needs and required debt amortization. 7 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 undersigned thereunto duly authorized. SCHULT HOMES CORPORATION ------------------------------------- (Registrant) By: ------------------------------ Fred A. Greenawalt Chief Accounting Officer By: ------------------------------ Walter E. Wells Chief Executive Officer & President Date: November 6, 1995 8 EX-27 2 EXHIBIT 27
5 1,000 3-MOS JUN-29-1996 JUL-02-1995 SEP-30-1995 4,297 0 15,135 0 13,781 37,640 34,018 0 74,210 36,500 0 7,719 0 0 25,824 74,210 80,482 80,482 64,062 13,144 0 0 54 3,235 1,350 1,885 0 0 0 1,885 0.50 0.50
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