-----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, L3auuba5MPelk+i+hYhCzsBORISavK6qfrXsu7yHBEpAzlOApH3wYoWT34r7388M 4WABYGknc1cVbzEprhvxpw== 0000081112-97-000001.txt : 19970228 0000081112-97-000001.hdr.sgml : 19970228 ACCESSION NUMBER: 0000081112-97-000001 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970126 FILED AS OF DATE: 19970227 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: 97545145 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 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 26, 1997 [ ] 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) 540-980-7330 (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: 2,795,552 shares of common stock outstanding as of February 28, 1997 Pulaski Furniture Corporation Index PART I: Financial Statements Consolidated Condensed Balance Sheets as of January 26, 1997 and November 3, 1996 . . . . . . . . . . . . . . 2 Consolidated Condensed Statements of Income Three 4-week periods ended January 26, 1997 and January 21, 1996 . . . . . . . . . . . . . . . . . . . . . . 3 Consolidated Statements of Cash Flows Three 4-week periods ended January 26, 1997 and January 21, 1996 . . . . . . . . . . . . . . . . . . . . . . 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 26, November 3, 1997 1996 ASSETS ---------- ---------- Current assets: Cash and cash equivalents $ 276 $ 2,397 Short-term investments 11 11 Accounts receivable, net 27,827 39,473 ---------- ---------- 28,114 41,881 Inventories: Raw materials 15,771 16,323 Work-in-process 7,234 6,635 Finished goods 36,771 33,874 ---------- ---------- 59,776 56,832 Less LIFO reserve (16,442) (15,054) ---------- ---------- 43,334 41,778 Prepaid expenses 877 655 Deferred income tax 600 600 ---------- ----------- Total current assets 72,925 84,914 Property, plant and equipment, net 38,065 38,340 Cash surrender value of life insurance 1,089 1,082 ---------- ---------- Total assets $ 112,079 $ 124,336 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable and accrued expenses: Accounts payable $ 8,253 $ 9,380 Notes payable 10,000 16,000 Wages and commissions 949 2,731 Taxes withheld from employees 935 683 ---------- ---------- 20,137 28,794 Federal and state income taxes 930 1,349 Current portion of long-term debt 2,000 2,000 ---------- ---------- Total current liabilities 23,067 32,143 Long-term notes payable 24,343 27,851 Deferred income taxes 4,122 4,145 Deferred compensation 2,512 2,519 Shareholders' equity Common stock 5,493 5,031 Retained earnings 52,986 52,804 Unamortized restricted stock (444) (157) ---------- ---------- Total shareholders' equity 58,035 57,678 ---------- ---------- Total liabilities and shareholders' equity $ 112,079 $ 124,336 ========== ========== 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. 26, Jan. 21, Incr 1997 1996 (Decr) % --------- --------- -------- ---- Net sales $ 35,422 $ 36,585 $(1,163) (3.2)% Costs and expenses Cost of sales 28,487 29,471 (984) (3.3) Selling & administrative 5,315 5,309 6 0.1 ---------- ---------- -------- Operating income 1,620 1,805 (185) (10.2) Other income and expenses Interest expense 585 584 1 0.2 Interest income (4) (3) (1) (33.3) Gain on sale of investments (131) 131 100.0 ---------- ---------- -------- Total 581 450 131 29.1 Income before income taxes 1,039 1,355 (316) (23.3) Provision for taxes on income 375 441 (66) (15.0) ---------- ---------- -------- Net income $ 664 $ 914 $ (250) (27.4) ========== ========== ======== Weighted average number of shares outstanding: Primary 2,828,349 2,856,087 Assuming full dilution 2,831,618 2,856,590 Earnings per share: Primary $0.23 $0.32 Assuming full dilution $0.23 $0.32 Cash dividends per share: $0.17 $0.16 See accompanying notes to financial statements. Pulaski Furniture Corporation Consolidated Statements of Cash Flows Three 4-week periods ended January 26, January 21, 1997 1996 ------------ ------------ OPERATING ACTIVITIES Net income $ 663,841 $ 913,995 Adjustments to reconcile net income to net cash provided by operating activities: Provision for depreciation/amortization 1,229,252 1,113,331 Provision for deferred income taxes (22,500) (22,500) Provision for deferred compensation (6,692) (5,188) Changes in operating assets and liabilities: Decrease in trade receivables 11,646,045 7,106,528 Increase in inventories (1,556,105) (454,888) Increase in prepaid expenses (221,808) (38,479) Decrease in accounts payable and accrued expenses (2,656,558) (5,401,882) Increase (decrease) in federal and state income taxes payable (419,044) 462,174 ------------ ------------ NET CASH PROVIDED BY OPERATING ACTIVITIES 8,656,431 3,673,091 INVESTING ACTIVITIES Purchase of property, plant and equipment (848,351) (156,005) Sale of investments 3,600 Increase in cash surrender value (7,095) (5,934) ------------ ------------ NET CASH USED IN INVESTING ACTIVITIES (855,446) (158,339) FINANCING ACTIVITIES Proceeds from issuance of common stock 469,210 423,471 Repurchase of common stock (400,000) (229,250) Payment of dividends (482,383) (457,613) Decrease in notes payable (6,000,000) (4,000,000) Payments on long-term debt (3,508,458) (511,904) ------------ ------------ NET CASH USED IN FINANCING ACTIVITIES (9,921,631) (4,775,296) ------------ ------------ Decrease in cash and cash equivalents (2,120,646) (1,260,544) Cash and cash equivalents at beginning of period 2,396,850 1,721,546 ------------ ------------ Cash and cash equivalents at end of period $ 276,204 $ 461,002 ============ ============ 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 November 3, 1996, for information concerning accounting policies, long-term debt, stock options and other financial matters. There have been no material changes in financial matters since November 3, 1996. 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 26, 1997 and November 3, 1996, and the results of operations and cash flows for the three 4-week periods ended January 26, 1997 and January 21, 1996. The results of operations for the three 4-week periods ended January 26, 1997 and January 21, 1996 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 1997 to First Quarter 1996 (See page 3 for dollar and percent changes.) - ---------------------------------------------------------------------------- The lower sales in the first quarter of 1997 as compared to the first quarter of 1996 was due primarily to decreased demand for the Corporation's furniture. Fewer units were shipped in the 1997 quarter, at higher average selling prices. The decrease in net income was due primarily to the lower shipments. The higher percentage of cost of sales and the higher percentage of selling and administrative expenses to sales is directly related to the lower sales volume. The higher effective income tax rate in the 1997 quarter was due to fewer tax credits in 1997. Capital Resources and Liquidity - -------------------------------- Working capital provided by operations was $1,864,000 for the quarter ended January 26, 1997 compared to $2,000,000 for the quarter ended January 21, 1996. Net working capital decreased by $2,913,000 during the first quarter of 1997 compared with an increase of $1,109,000 in the first quarter of 1996. During the first quarter of 1997, the Corporation's average amount of outstanding indebtedness for borrowed money was $42,687,265. The weighted average rate of interest on such indebtedness was approximately 5.86% per annum. Pulaski Furniture Corporation Part I - Exhibit 3 Computation of Earnings Per Share Three 4-week periods ended January 26, January 21, 1997 1996 ------------ ------------ PRIMARY: Average shares outstanding 2,820,855 2,846,432 Dilutive stock options - based on treasury stock method using average market price 3,421 6,187 Dilutive shares under Employee Stock Purchase Plan - based on average shares issuable 4,073 3,468 ------------ ------------ TOTAL 2,828,349 2,856,087 Net Income $ 663,841 $ 913,995 ------------ ------------ Net Income per Share $ 0.23 $ 0.32 ======= ======= FULLY DILUTED: Average shares outstanding 2,820,855 2,846,432 Dilutive stock options - based on treasury stock method using the greater of year-end market value or average market value 6,690 6,690 Dilutive shares under Employee Stock Purchase Plan - based on average shares issuable 4,073 3,468 ------------ ------------ TOTAL 2,831,618 2,856,590 Net Income per Share $ 0.23 $ 0.32 ======= ======= Pulaski Furniture Corporation Part II - Other Information Item 4. Submission of Matters to a Vote of Security Holders On February 14, 1997, the Corporation held its annual meeting of shareholders, at which the following business was transacted: John W. Stanley and Hugh V. White, Jr., were elected to serve as Class I directors of the Corporation, each for a term of three years. A resolution to amend the Salaried Employees' Stock Purchase Plan was approved. The votes for the election of the Class I directors and for the approval of the resolution were as follows: FOR AGAINST ABSTAIN ---------- ---------- ---------- Mr. Stanley 2,566,572 0 13,497 Mr. White 2,569,071 0 10,998 To amend the Salaried Employees' Stock Purchase Plan 2,245,708 284,571 49,790 The terms of the following directors continued beyond the 1997 annual meeting: Bernard C. Wampler, Harry H. Warner, Harry J.G. van Beek, John G. Wampler, and John D. Munford. 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: February 28, 1997 /s/ John G. Wampler --------------------------------------- John G. Wampler (President and Chief Executive Officer) /s/ Jason A. Gibbs --------------------------------------- Jason A. Gibbs, Chief Financial Officer (Principal Accounting Officer) EX-27 2
5 1000 3-MOS NOV-02-1997 JAN-26-1997 276 11 27827 0 43334 72925 90035 51970 112079 23067 24343 0 0 5493 52542 112079 35422 35422 28487 33802 0 0 585 1039 375 664 0 0 0 664 0.23 0.23
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