-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, EUhTo8V6J014Egd7LBS5qS5it+HWhDK9GRwn02y6SqeoOM1frNAqSztJvOln/XPf tI0CagBrqSaOYG2u/xnKyg== 0000950144-95-002237.txt : 19950814 0000950144-95-002237.hdr.sgml : 19950814 ACCESSION NUMBER: 0000950144-95-002237 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950811 SROS: CSX SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PUERTO RICAN CEMENT CO INC CENTRAL INDEX KEY: 0000081076 STANDARD INDUSTRIAL CLASSIFICATION: CEMENT, HYDRAULIC [3241] IRS NUMBER: 516601895 STATE OF INCORPORATION: PR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-04753 FILM NUMBER: 95561675 BUSINESS ADDRESS: STREET 1: P.O.BOX 364487 CITY: SAN JUAN STATE: PR ZIP: 00936-4487 BUSINESS PHONE: 8097833000 MAIL ADDRESS: STREET 2: POST OFFICE BOX 364887 CITY: SAN JUAN STATE: PR ZIP: 09336-4487 10-Q 1 PUERTO RICAN CEMENT CO. FORM 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Quarterly Report Under Section 13 or 15 (d) of the Securities Exchange Act of 1934 (Mark One) (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1995 OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from TO ---------------- ---------------- For Quarter Ended Commission file number 1-4753 --------------- ------ PUERTO RICAN CEMENT COMPANY, INC. (Exact name of registrant as specified in its charter) COMMONWEALTH OF PUERTO RICO 51-A-66-0189525 - --------------------------- --------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) PO Box 364487 - San Juan, P.R. 00936-4487 - ------------------------------ ---------- (Address of principal executive offices) (Zip Code) (809) 783-3000 -------------- (Registrant's telephone number, including area code) NONE Former name, former address and former fiscal year, if changed since last report. Indicate by check mark whether the Registrant (1) has filed 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 --- --- COMMON STOCK - $1.00 PAR VALUE 5,419,200 SHARES 2 PUERTO RICAN CEMENT COMPANY, INC. INDEX
PAGE NO. Part I - Financial Information Consolidated Balance Sheet as of June 30, 1995 and December 31, 1994 1 - 2 Consolidated Statement of Income Second quarter ended on June 30, 1995 and 1994 3 Consolidated Statement of Cash Flows Six months ended on June 30, 1995 and 1994 4 Notes to Consolidated Financial Statements 5 Management's Discussion and Analysis of Financial Condition and Results of Operations 6 - 7 Part II - Other Information 7 Signatures 8
3 PUERTO RICAN CEMENT COMPANY, INC. CONSOLIDATED BALANCE SHEET (UNAUDITED)
JUNE DECEMBER ASSETS 30, 1995 31, 1994 CURRENT ASSETS Cash $ 174,177 $ 114,702 Short-term investments 2,028,894 ------------ ------------ Cash and Cash Equivalents 2,203,071 114,702 ------------ ------------ Notes and accounts receivable-net of allowance for doubtful accounts of $1,093,809 in 1995 and $1,094,003 in 1994 19,519,341 14,358,827 ------------ ------------ Inventories: Finished products 1,545,719 1,964,131 Work in process 2,443,752 3,561,875 Raw materials 4,238,964 4,202,704 Maintenance & operating supplies 20,359,751 18,880,858 Land held for sale including development costs 307,382 307,382 ------------ ------------ Total inventories 28,895,568 28,916,950 ------------ ------------ Prepaid expenses 4,629,917 3,907,844 ------------ ------------ TOTAL CURRENT ASSETS 55,247,897 47,298,323 ------------ ------------ PROPERTY, PLANT & EQUIPMENT - net of accumulated depreciation, depletion and amortization of $54,805,925 in 1995 and $51,388,740 in 1994 114,609,855 111,688,573 ------------ ------------ OTHER ASSETS Long-term investments 39,432,407 42,030,507 Investments in real estate 704,987 704,987 Other long-term assets 125,413 147,364 ------------ ------------ 40,262,807 42,882,858 ------------ ------------ TOTAL $210,120,559 $201,869,754 ============ ============
See notes to consolidated financial statements. 1 4 PUERTO RICAN CEMENT COMPANY, INC. CONSOLIDATED BALANCE SHEET (UNAUDITED)
JUNE DECEMBER 30, 1995 31, 1994 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Short-term borrowing $ - $ 2,420,000 Current portion of long-term debt 6,178,571 6,178,571 Accounts payable 4,302,152 4,739,970 Accrued liabilities 3,863,228 2,868,989 Income taxes payable 206,833 664,509 ------------ ------------ TOTAL CURRENT LIABILITIES 14,550,784 16,872,039 ------------ ------------ LONG-TERM LIABILITIES Long-term debt, less current portion 35,916,833 31,696,403 Deferred income taxes 29,806,869 27,722,814 Postretirement benefit liability 2,889,863 2,607,162 ------------ ------------ 68,613,565 62,026,379 ------------ ------------ STOCKHOLDERS' EQUITY Preferred stock, authorized 2,000,000 shares of $5.00 par value each; none issued Common stock authorized 20,000,000 shares of $1.00 par value each; issued 6,000,000 shares, outstanding 5,494,200 shares 6,000,000 6,000,000 Additional paid-in capital 14,367,927 14,367,927 Retained earnings 120,306,371 114,140,497 ------------ ------------ 140,674,298 134,508,424 Less: 580,800 (1994 - 505,800) shares of common stock in treasury, at cost 13,718,088 11,537,088 ------------ ------------ STOCKHOLDERS' EQUITY NET 126,956,210 122,971,336 ------------ ------------ TOTAL $210,120,559 $201,869,754 ============ ============
See notes to consolidated financial statements. 2 5 PUERTO RICAN CEMENT COMPANY, INC. CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
Three Months Ended Six Months Ended June 30, June 30, 1995 1994 1995 1994 Net sales $25,169,746 $24,762,612 $47,887,764 $47,274,946 Revenue from real estate operations 30,925 24,274 55,199 48,548 ----------- ----------- ----------- ----------- 25,200,671 24,786,886 47,942,963 47,323,494 Cost of sales 15,289,923 15,492,563 30,033,596 29,981,136 ----------- ----------- ----------- ----------- Gross margin 9,910,748 9,294,323 17,909,367 17,342,358 Selling, general & administrative expenses 3,193,716 2,943,191 6,336,974 5,404,523 ----------- ----------- ----------- ----------- Income from operations 6,717,032 6,351,132 11,572,393 11,937,835 ----------- ----------- ----------- ----------- Other charges (credits): Interest and financial charges 522,793 579,538 1,048,780 1,155,492 Interest income (608,883) (553,035) (1,211,659) (1,040,001) Other income (468,992) (24,203) (504,039) (61,361) ----------- ----------- ----------- ----------- Total other charges (credits) (555,082) 2,300 (666,918) 54,130 ----------- ----------- ----------- ----------- Income before income tax 7,272,114 6,348,832 12,239,311 11,883,705 Provision for income tax 2,543,982 2,256,024 4,218,159 4,219,052 ----------- ----------- ----------- ----------- Net income $ 4,728,132 $ 4,092,808 $ 8,021,152 $ 7,664,653 =========== =========== =========== =========== Income per share: Net income $ 0.87 $ 0.70 $ 1.47 $ 1.32 =========== =========== =========== =========== Average Common Shares Outstanding 5,456,700 5,801,033 5,456,700 5,801,033 =========== =========== =========== ===========
See notes to consolidated financial statements. 3 6 PUERTO RICAN CEMENT COMPANY, INC. CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30,
1995 1994 Cash flows from operating activities: Net income $ 8,021,152 $ 7,664,653 ------------- -------------- Adjustments to reconcile net income to cash flows from operating activities: Depreciation, depletion and amortization 3,432,609 3,467,667 Accretion of discounts on investments (2,388,275) Provision for deferred income taxes 2,084,055 2,115,948 Postretirement benefit cost 222,701 (131,656) Gain on sale of property & equipment (421,427) Changes in assets and liabilities: Increase in notes & accounts receivable (3,540,972) (4,347,367) Decrease in inventories 21,382 2,987,218 Increase in prepaid expenses (722,073) (1,424,845) (Decrease) increase in accounts payable (374,630) 1,094,858 Increase in accrued liabilities 994,239 2,023,828 Decrease in income taxes payable (457,676) (103,423) Decrease in other long-term assets 21,951 20,116 ------------- -------------- Total adjustments (1,128,116) 5,702,344 ------------- -------------- Cash provided by operations 6,893,036 13,366,997 ------------- -------------- Cash flows from investing activities: Capital expenditures (6,369,009) (5,663,602) Proceeds from sale of property & equipment 436,545 Increase in other short-term investments (2,028,894) (2,208,058) Decrease (increase) in long-term investments 3,366,833 (5,099,794) ------------- -------------- Cash used in investing activities (4,594,525) (12,971,454) ------------- -------------- Cash flows from financing activities: Proceeds from loan 4,220,430 2,375,185 Decrease in short-term borrowing (2,420,000) Purchase of treasury stock (2,181,000) (1,181,950) Dividends paid (1,858,466) (1,742,310) ------------- -------------- Cash used in financing activities (2,239,036) (549,075) ------------- -------------- Increase (decrease) in cash and cash equivalents $ 59,475 $ (153,532) ============= ============== Cash and cash equivalents - beginning of year $ 114,702 $ 431,293 Cash and cash equivalents - end of period 174,177 277,761 ------------- -------------- Increase (decrease) in cash and cash equivalents $ 59,475 $ (153,532) ============= ==============
See notes to consolidated financial statements. 4 7 PUERTO RICAN CEMENT COMPANY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS In the opinion of the Registrant, the accompanying unaudited financial statements contain all adjustments necessary to present fairly its financial position at June 30, 1995 and December 31, 1994, and the results of operations and cash flows for the six months ended June 30, 1995 and 1994. The results of operations are not necessarily indicative of the results to be expected for the full year. Cash and cash equivalents of approximately $2.2 million as of June 30, 1995 consisted principally of short-term obligations of the U.S. Federal Government or its agencies. Long-term investments were principally obligations of the U.S. Federal Government or its agencies with maturities ranging from more than one year to up to 7 years. These investments resulted from excess funds generated from operations. Consolidated notes and accounts receivable at June 30, 1995 were $5.1 million higher than the $14.4 million balance at December 31, 1994. Higher volume on sales during the second quarter of 1995 when compared to the prior year's last quarter, resulted in a comparative increase in accounts receivable-trade. Receivables' turnover has been maintained within normal historical levels. Consolidated inventory balances as of June 30, 1995 and December 31, 1994, respectively, remained at approximately $29.9 million. Prepaid expenses increased to $4.6 million as of June 30, 1995 compared to $3.9 million as of December 31, 1994 due principally to property tax prepayments scheduled for this period. Long-term investments decreased $2.6 million from $42 million in December 1994 to $39.4 million in June 1995. This decrease resulted from the maturity of various of these investments during this period, amount which was reinvested almost entirely in short-term investments. Total current liabilities decreased approximately $2.3 million when compared to the $16.9 million balance outstanding on December 31, 1994. The repayment of $2.4 million in short-term borrowing was the principal reason of this decline. At its June 21, 1995 meeting, the Board of Directors of the Registrant declared a 17 cents per share dividend on its common stock, payable on August 11, 1995 to stockholders of record on July 14, 1995. As of June 30, 1995, the Registrant has 5,419,200 shares of common stock issued and outstanding. This compares with 5,767,700 outstanding shares as of March 31, 1994. -5- 8 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Liquidity and Capital Resources - ------------------------------- Working capital, for the period, reached the figure of $40.7 million at June 30, 1995 compared to $30.4 million at December 31, 1994, with current ratio growing from 2.8 to 1 in December 1994 to 3.8 to 1 in June 1995. Net cash provided by operations for this period in the amount of $6.9 million was principally used to pay $1.8 million in dividends and to repurchase, in April 1995, 75,000 shares of the Company's common stock for $2.2 million. During the first half of 1995, capital expenditures of $6.4 million were incurred, including $5 million related to the mill conversion project. This increase in property, plant and equipment was offset by $3.4 million in depreciation for the period. Long-term debt increased $4.2 million principally from loans proceeds related to the mills' conversion project. Approximate aggregate maturities of long-term debt for the remaining of 1995 and thereafter are as follows: 1995 $ 6,178,571 1996 6,178,571 1997 2,821,429 1998 7,000,000 1999 19,916,833 ----------- Totals $39,639,217 ===========
Loan agreements with term lenders impose certain restrictions on the Company pertaining to working capital, indebtedness, dividends, investments and certain advances, among others. The Registrant has available credit facilities with commercial banks for short-term financing and discount of trade paper from customers in the aggregate amount of $20,600,000. Maximum aggregate short-term borrowing outstanding at any month-end during the six-month period ended on June 30, 1995 was $2,175,000, with no outstanding balance as of this date. Results of Operations - --------------------- Consolidated net sales of $25.2 million for the quarter ended on June 30, 1995 resulted in an increase of 1.6% from $24.8 million in sales reached during the same period of 1994. For the six-month period consolidated net sales increased 1.3%, or $613,000 from June 30, 1994 to June 30, 1995. -6- 9 Gross margins as a percentage of total sales were 39% for the second quarter of 1995 compared to 37% for the second quarter of 1994. For both of the six-month periods ended on June 30, 1995 and 1994 gross margins remained at 37%. Selling, general and administrative expenses increased $251,000 from $2.9 million in the second quarter of 1994 to $3.2 million in the second quarter of 1995, and $932,000 from $5.4 million during the six-month period ended on June 30, 1994 to $6.3 million as of June 30, 1995. This increase relates principally to higher pension and postretirement benefit expenses plus normal inflationary increases in salaries, wages and related benefits. Interest and financial charges of $1 million as of June 30, 1995 and $523,000 for the quarter ended on that date were 9% lower than the comparable periods of 1994. These declines resulted principally from the combination of reduced interest rates on the outstanding loans and the capitalization of all the interest related to the financing of the mills' conversion project. Consolidated interest income increased 16% to $1.2 million in 1995 principally due to higher average investments volume outstanding during this period in addition to improved interest rates on these investments. The increase of $445,000 in other income represented the gain on the sale of a piece of idle equipment. Part II. OTHER INFORMATION. In July 1995, the Company substantially completed the construction phase of the mills' conversion project. The equipment was successfully tested and is actually undergoing the necessary start-up procedures and testing related to this kind of equipment. Item 2. NONE Item 5. NONE Item 6. Exhibits and Reports on Form 8-K -------------------------------- 27 Financial Data Schedule (for SEC use only) -7- 10 SIGNATURES Pursuant to the requirement 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. PUERTO RICAN CEMENT COMPANY, INC. - --------------------------------- (Registrant) Date: 08/02/95 By: /S/ Angel Amaral -------------------- ------------------------------- Angel Amaral Vice President & Controller Date: 08/02/95 By: /S/ Jose O. Torres ------------------- -------------------------------- Jose O. Torres Vice President of Finance & Treasurer -8- EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS OF PUERTO RICAN CEMENT COMPANY, INC. FOR THE SIX-MONTHS ENDED JUNE 30, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 6-MOS DEC-31-1995 JUN-30-1995 174,177 2,028,894 20,613,150 1,093,809 28,895,568 55,247,897 169,415,780 54,805,925 210,120,559 14,550,784 35,916,833 6,000,000 0 0 120,956,210 210,120,559 47,887,764 47,942,963 30,033,596 36,370,570 (666,918) 0 0 12,239,311 4,218,159 0 0 0 0 8,021,152 1.47 0
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