-----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, CtzorjQTtdcfYGUSmacS6cHTyxNd9h67JDuJAltF06yejcfJ6G+KyOyftt2p23XR ZVXju8hgkdDUmJOT6L6HNQ== 0000081112-95-000002.txt : 19950609 0000081112-95-000002.hdr.sgml : 19950609 ACCESSION NUMBER: 0000081112-95-000002 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950122 FILED AS OF DATE: 19950303 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: PULASKI FURNITURE CORP CENTRAL INDEX KEY: 0000081112 STANDARD INDUSTRIAL CLASSIFICATION: WOOD HOUSEHOLD FURNITURE, (NO UPHOLSTERED) [2511] IRS NUMBER: 540594965 STATE OF INCORPORATION: VA FISCAL YEAR END: 1026 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-00314 FILM NUMBER: 95518311 BUSINESS ADDRESS: STREET 1: P O BOX 1371 STREET 2: ONE PULASKI SQ CITY: PULASKI STATE: VA ZIP: 24301 BUSINESS PHONE: 7039807330 MAIL ADDRESS: STREET 1: P O BOX 1371 STREET 2: 1 PULASKI SQUARE CITY: PULASKI STATE: VA ZIP: 24301 10-Q 1 FIRST QUARTER FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 --------- FORM 10-Q --------- [X] Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended January 22, 1995 [ ] Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ________________ to ________________ COMMISSION FILE NUMBER 0-314 Pulaski Furniture Corporation (Exact name of registrant as specified in its charter) Virginia (State or other jurisdiction of incorporation) 54-0594965 (IRS employer identification number) P.O. Box 1371, Pulaski, Virginia (Address of principal executive offices) 24301 (Zip Code) 703-980-7330 (Registrant's telephone number) Indicate by checkmark 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 [X] NO [ ] Indicate the number of shares outstanding of each of the issuer's classes of common stock as of the latest practicable date: 2,837,082 shares of common stock outstanding as of March 3, 1995 Pulaski Furniture Corporation Index PART I: Financial Statements Consolidated Condensed Balance Sheets as of January 22, 1995 and October 30, 1994 . . . . . . . . . . . . . . 2 Consolidated Condensed Statements of Income Three 4-week periods ended January 22, 1995 and January 23, 1994 . . . . . . . . . . . . . . . . . . . . . . 3 Consolidated Statements of Cash Flows Three 4-week periods ended January 22, 1995 and January 23, 1994 . . . . . . . . . . . . . . . . . . . . . . 4 Notes to Consolidated Condensed Financial Statements . . . . . . 5 Management's Discussion and Analysis of the Consolidated Condensed Statements of Income . . . . . . . . . . . 6 Exhibit 3 - Computation of Earnings per Share . . . . . . . . . . 7 PART II: Other Information and Signatures . . . . . . . . . . . . . . 8 Pulaski Furniture Corporation Consolidated Condensed Balance Sheets (in thousands) January 22, October 30, 1995 1994 ASSETS ---------- ---------- Current assets: Cash and cash equivalents $ 228 $ 1,088 Short-term investments 65 65 Accounts receivable, net 32,258 33,428 ---------- ---------- 32,551 34,581 Inventories: Raw materials 14,362 14,651 Work-in-process 6,495 6,049 Finished goods 27,626 27,020 ---------- ---------- 48,483 47,720 Less LIFO reserve (15,391) (13,777) ---------- ---------- 33,092 33,943 Prepaid expenses 442 465 Deferred income tax 493 493 ---------- ----------- Total current assets 66,578 69,482 Investments and other assets 1,221 1,235 Property, plant and equipment, net 40,172 41,069 Cash surrender value of life insurance 964 964 ---------- ---------- Total assets $ 108,935 $ 112,750 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable and accrued expenses: Accounts payable $ 8,167 $ 8,544 Notes payable 5,000 8,000 Wages and commissions 883 2,396 Taxes withheld from employees 664 579 ---------- ---------- 14,714 19,519 Federal and state income taxes 1,018 757 Current portion of long-term debt 2,000 2,004 ---------- ---------- Total current liabilities 17,732 22,280 Long-term notes payable 31,236 31,398 Deferred income taxes 3,849 3,871 Deferred compensation 1,983 1,938 Shareholders' equity Common stock 5,974 6,084 Retained earnings 48,472 47,529 Unamortized restricted stock (311) (350) ---------- ---------- Total shareholders' equity 54,135 53,263 ---------- ---------- Total liabilities and shareholders' equity $ 108,935 $ 112,750 ========== ========== See accompanying notes to financial statements. Pulaski Furniture Corporation Consolidated Condensed Statements of Income (in thousands, except for per share data) Three 4-week periods ended Jan. 22, Jan. 23, Incr 1995 1994 (Decr) % --------- --------- -------- ---- Net sales $ 41,270 $ 32,150 $ 9,120 28.4% Costs and expenses Cost of sales 33,032 25,740 7,292 28.3 Selling & administrative 5,569 4,946 623 12.6 ---------- ---------- -------- Operating income 2,669 1,464 1,205 82.3 Other income and expenses Interest expense 593 336 257 76.5 Interest income (6) (6) 0 0.0 ---------- ---------- -------- Total 587 330 257 77.9 Income before income taxes and cumulative effect of accounting change 2,082 1,134 948 83.6 Provision for taxes on income 709 405 304 75.1 ---------- ---------- -------- Income before cumulative effect of accounting change 1,373 729 644 88.3 Cumulative effect of change in accounting for income taxes 396 ---------- ---------- -------- Net income $ 1,373 $ 1,125 $ 248 22.0 ========== ========== ======== Weighted average number of shares outstanding: Primary 2,863,258 2,880,823 Assuming full dilution 2,863,258 2,889,116 Earnings per share before cumulative effect of accounting change: Primary $0.48 $0.25 Assuming full dilution $0.48 $0.25 Earnings per share of cumulative effect of accounting change: Primary $0.14 Assuming full dilution $0.14 Earnings per share after cumulative effect of accounting change: Primary $0.48 $0.39 Assuming full dilution $0.48 $0.39 Cash dividends per share: $0.15 $0.14 See accompanying notes to financial statements. Pulaski Furniture Corporation Consolidated Statements of Cash Flows Three 4-week periods ended January 22, January 23, 1995 1994 ------------ ------------ OPERATING ACTIVITIES Net income $ 1,373,023 $ 728,926 Adjustments to reconcile net income to net cash provided by operating activities: Provision for depreciation 1,098,256 804,199 Provision for deferred income taxes (22,500) (22,500) Provision for deferred compensation 45,239 41,374 Proportionate share in loss of investee company 14,130 14,096 Changes in operating assets and liabilities: Decrease in trade receivables 1,169,792 4,229,947 Decrease in inventories 851,031 60,330 (Increase) decrease in prepaid expenses 23,613 (192,355) (Decrease) in accounts payable and accrued expenses (1,803,848) (2,397,995) Increase (decrease) in federal and state income taxes payable 261,262 (637,293) ------------ ------------ NET CASH PROVIDED BY OPERATING ACTIVITIES 3,009,998 2,628,729 INVESTING ACTIVITIES Purchase of property, plant and equipment (200,989) (1,793,910) Sale of investments 0 93,814 ------------ ------------ NET CASH USED IN INVESTING ACTIVITIES (200,989) (1,700,096) FINANCING ACTIVITIES Proceeds from issuance of common stock 0 461,721 Repurchase of common stock (71,931) 0 Payment of dividends (430,362) (397,985) Decrease in notes payable (3,000,000) 0 Payments on long-term debt (166,666) (1,166,667) ------------ ------------ NET CASH USED IN FINANCING ACTIVITIES (3,668,959) (1,102,931) ------------ ------------ (Decrease) in cash and cash equivalents (859,950) (174,298) Cash and cash equivalents at beginning of period 1,088,322 763,438 ------------ ------------ Cash and cash equivalents at end of period $ 228,372 $ 589,140 ============ ============ See accompanying notes to financial statements. Pulaski Furniture Corporation Notes to Consolidated Condensed Financial Statements See notes to financial statements included in the Corporation's 10-K for the year ended October 30, 1994, for information concerning accounting policies, long-term debt, stock options and other financial matters. On February 11, 1992, the Financial Accounting Standards Board issued Statement No. 109, "Accounting for Income Taxes." Under the new rules, deferred taxes are recognized using the liability method, whereby tax rates are applied to cumulative temporary differences based on when and how they are expected to affect the tax return. Deferred tax assets and liabilities are adjusted for tax rate changes. The Corporation adopted the new method in the quarter ending January 23, 1994, and has shown the initial application as a cumulative effect of a change in accounting principle. The Corporation has determined that adoption of Statement 109 decreased the deferred tax liability by approximately $396,000 but had no cash impact. There have been no material changes in financial matters since October 30, 1994. In the opinion of the Corporation, the accompanying unaudited consolidated condensed financial statements contain all adjustments (consisting of only normal accruals) necessary to present fairly the financial position as of January 22, 1995 and October 30, 1994, and the results of operations and cash flows for the three 4-week periods ended January 22, 1995 and January 23, 1994. The results of operations for the three 4-week periods ended January 22, 1995 and January 23, 1994 are not necessarily indicative of the results to be expected for the full year. Pulaski Furniture Corporation Management's Discussion and Analysis of the Consolidated Condensed Statements of Income Comparison of First Quarter 1995 to First Quarter 1994 (See page 3 for dollar and percent changes.) - ---------------------------------------------------------------------------- The higher sales in the 1995 quarter were due to increased demand for the Corporation's furniture, and to the additional volume produced by the new factory. The increase in selling and administrative expenses, other than commissions, is primarily due to increased information systems costs. The increase in information systems costs is due to an expansion of the system. Interest expense increased due to a higher level of outstanding debt and to higher interest rates. The increase in net income is due primarily to higher production and shipments. Capital Resources and Liquidity - -------------------------------- Working capital provided by operations was $2,508,000 for the quarter ended January 22, 1995 compared to $1,566,000 for the quarter ended January 23, 1994. Net working capital increased by $1,644,000 during the first quarter of 1995 compared with a decrease of $1,326,000 in the first quarter of 1994. During the first quarter of 1995, the Corporation's average amount of outstanding indebtedness for borrowed money was $39,888,534. The weighted average rate of interest on such indebtedness was approximately 6.4% per annum. Pulaski Furniture Corporation Part I - Exhibit 3 Computation of Earnings Per Share Three 4-week periods ended January 22, January 23, 1995 1994 ------------ ------------ PRIMARY: Average shares outstanding 2,854,659 2,850,020 Dilutive stock options - based on treasury stock method using average market price 5,324 28,670 Dilutive shares under Employee Stock Purchase Plan - based on average shares issuable 3,275 2,133 ------------ ------------ TOTAL 2,863,258 2,880,823 Net Income before cumulative effect of accounting change $ 1,373,023 $ 728,926 Cumulative effect of accounting change 396,092 ------------ ------------ Net Income after cumulative effect of accounting change $ 1,373,023 $ 1,125,018 ============ ============ Net Income per Share: Before cumulative effect of accounting change $ 0.48 $ 0.25 Cumulative effect of accounting change 0.14 ------- ------- After cumulative effect of accounting change $ 0.48 $ 0.39 ======= ======= FULLY DILUTED: Average shares outstanding 2,854,659 2,850,020 Dilutive stock options - based on treasury stock method using the greater of year-end market value or average market value 5,324 36,963 Dilutive shares under Employee Stock Purchase Plan - based on average shares issuable 3,275 2,133 ------------ ------------ TOTAL 2,863,258 2,889,116 Net Income per Share: Before cumulative effect of accounting change $ 0.48 $ 0.25 Cumulative effect of accounting change 0.14 ------- ------- After cumulative effect of accounting change $ 0.48 $ 0.39 ======= ======= Pulaski Furniture Corporation Part II - Other Information Item 4. Submission of Matters to a Vote of Security Holders On February 10, 1995, the Corporation held its annual meeting of shareholders, at which the following business was transacted: John D. Munford and John G. Wampler were elected to serve as Class II directors of the Corporation, each for a term of three years. The votes for the election of the Class II directors were as follows: FOR AGAINST ABSTAIN ---------- ---------- ---------- Mr. Munford 2,540,320 0 14,512 Mr. Wampler 2,540,113 207 14,512 The terms of the following directors continued beyond the 1995 annual meeting: Bernard C. Wampler, Clifford A. Cutchins, III, Harry H. Warner, John W. Stanley, and Hugh V. White, Jr. Item 5. Other Information All other information called for by other items of Part II of the Form 10-Q is either inapplicable or the response to the items would be negative. 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. PULASKI FURNITURE CORPORATION Date: March 3, 1995 /s/ John G. Wampler --------------------------------------- John G. Wampler (President and Chief Operating Officer) /s/ Jason A. Gibbs --------------------------------------- Jason A. Gibbs, Controller (Principal Accounting Officer) EX-27 2 ARTICLE 5 FIN. DATA SCHEDULE
5 1000 3-MOS OCT-29-1995 JAN-22-1995 228 65 32258 0 33092 66578 82398 42226 108935 17732 31236 5974 0 0 48161 108935 41270 41270 33032 38601 0 201 593 2082 709 1373 0 0 0 1373 0.48 0.48
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