-----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, LljmUHw3SEjWYO9x3AqrWEt4dhgmZUzcyOx97eXttUwz8hABGH6I0cqynTq2szSP PUZhbGQIqDewCqeJwWuXdw== 0000087731-97-000002.txt : 19970221 0000087731-97-000002.hdr.sgml : 19970221 ACCESSION NUMBER: 0000087731-97-000002 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961228 FILED AS OF DATE: 19970210 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: SCHWERMAN TRUCKING CO CENTRAL INDEX KEY: 0000087731 STANDARD INDUSTRIAL CLASSIFICATION: TRUCKING (NO LOCAL) [4213] IRS NUMBER: 390767397 STATE OF INCORPORATION: WI FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-02936 FILM NUMBER: 97521712 BUSINESS ADDRESS: STREET 1: 611 S 28TH ST STREET 2: P O BOX 1601 CITY: MILWAUKEE STATE: WI ZIP: 53201-1601 BUSINESS PHONE: 4146711600 MAIL ADDRESS: STREET 1: 611 SOUTH 28TH STREET STREET 2: P O BOX 1601 CITY: MILWAUKEE STATE: WI ZIP: 53201-1601 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 For Quarter Ended December 28, 1996 Commission file number 1-2936 SCHWERMAN TRUCKING CO. (Exact name of registrant as specified in its charter) Wisconsin 39-0767397 ------------------------------ ------------------ (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) P. O. Box 1601, 611 South 28 Street, Milwaukee, WI 53201 ---------------------------------------------------------- (Address of principal executive offices) (Zip Code) 414/671-1600 ---------------------------------------------------- (Registrant's telephone number, including area code) 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 X . No --- --- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Outstanding at Class January 31, 1997 ----- ---------------- Common, $1 par value 422,089 SCHWERMAN TRUCKING CO. AND SUBSIDIARIES INDEX Page No. PART I. Financial Information: Consolidated Condensed Balance Sheet at December 28, 1996 and March 30, 1996 3 Consolidated Condensed Statements of Income for the three months and nine months ended December 28, 1996 and December 23, 1995 4 Consolidated Condensed Statements of Cash Flows for the nine months ended December 28, 1996 and December 23, 1995 5 Notes to Consolidated Condensed Financial Statements 6 Management's Discussion and Analysis of Financial Condition and Results of Operations 7 PART II. Other Information 9 SCHWERMAN TRUCKING CO. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS
DECEMBER 28, MARCH 30, ASSETS 1996 1996 (Unaudited) ----------- --------- Current Assets: Cash and cash equivalents $ 63,930 $ 113,476 Accounts receivable (less allowances of $40,000) 4,824,665 4,033,387 Other accounts and notes receivable 60,598 801,451 Operating supplies and parts 1,102,411 1,072,286 Tires in service 856,448 741,079 Prepaid expenses 356,602 620,267 Other current assets 261,131 258,661 ----------- ----------- 7,525,785 7,640,607 ---------- ----------- Property, plant and equipment at cost 60,227,906 55,498,489 Less accumulated depreciation and amortization (37,032,052) (34,528,615) ------------ ----------- 23,195,854 20,969,874 ----------- ----------- Receivable from parent and affiliates 1,384,136 589,972 Other non-current assets 1,636,180 1,409,482 ----------- ----------- $33,741,955 $30,609,935 =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current portion of long-term debt $ 3,453,476 $ 3,042,540 Accounts payable 1,808,537 2,043,522 Accrued liabilities 3,623,239 3,600,518 Income taxes payable 393,049 31,755 Deferred income taxes - current 328,230 328,230 ----------- ---------- 9,606,531 9,046,565 ----------- ---------- Long-term debt 11,974,654 11,098,695 Deferred income taxes 2,158,025 1,746,025 Other non-current liabilities 728,026 710,610 Stockholders' Equity Preferred stock 1,497,470 1,497,470 Common stock 422,089 422,089 Additional paid-in capital 232,792 232,792 Retained earnings 7,122,368 5,855,689 ----------- ----------- 9,274,719 8,008,040 ----------- ----------- $33,741,955 $30,609,935 =========== =========== The accompanying notes are an integral part of the condensed consolidated financial statements.
SCHWERMAN TRUCKING CO. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF INCOME (UNAUDITED)
--Three Months Ended-- --Nine Months Ended-- Dec. 28, Dec. 23, Dec. 28, Dec. 23, 1996 1995 1996 1995 -------- -------- -------- -------- Revenues Operating revenues $14,333,566 $13,459,793 $45,728,634 $44,595,672 Equip. and other rentals 205,851 224,595 640,596 647,383 Other 474,966 553,749 1,568,074 1,727,616 ----------- ----------- ----------- ----------- 15,014,383 14,238,137 47,937,304 46,970,671 ----------- ----------- ----------- ----------- Operating Expenses Salaries, wages and fringe benefits 7,118,005 6,591,321 21,936,353 21,179,390 Fuel and fuel taxes 1,731,214 1,333,586 5,140,308 4,409,186 Parts, repairs and tires 1,040,147 969,198 3,018,211 2,936,486 Insurance and workers' compensation 719,088 949,159 2,808,443 3,122,120 Depreciation & amortization 981,652 930,712 3,079,167 2,733,601 Purchased transportation 1,031,166 1,215,955 3,119,921 3,955,775 Rent expense 216,962 284,696 561,169 873,957 Other operating expenses 1,643,270 1,407,338 5,111,533 4,407,756 (Gain) loss on disposal of property, plant and equipment, net (25,626) 10,620 (28,254) (16,132) ---------- ---------- ---------- ---------- 14,455,878 13,692,585 44,746,851 43,602,139 ---------- ---------- ---------- ---------- Operating income 558,505 545,552 3,190,453 3,368,532 Interest expense, net 309,731 301,409 1,021,157 976,152 ---------- ---------- ---------- ---------- Income before income taxes 248,774 244,143 2,169,296 2,392,380 Federal and state income 94,000 93,000 824,000 909,000 Net Income 154,774 151,143 1,345,296 1,483,380 Dividends on preferred shares (26,205) (26,205) (78,617) (78,617) ---------- ---------- --------- --------- Net income applicable common shares $ 128,569 $ 124,938 $1,266,679 $ 1,404,763 ========= ========== ========== =========== Weighted Average Number of Common Shares Outstanding 422,089 422,089 422,089 422,089 ========== ========== ========== =========== Net Income Per Common Share $.30 $ .30 $ 3.00 $ 3.33 ========== ========== ========== =========== The accompanying notes are an integral part of the condensed consolidated financial statements.
SCHWERMAN TRUCKING CO. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
--Nine Months Ended-- December 28, December 23, 1996 1995 ----------- ------------ Cash flows from operating activities: Net income (loss) $ 1,345,296 $ 1,483,380 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 3,079,167 2,733,601 Provision for deferred income taxes 412,000 454,500 Provision for Doubtful accounts -- 15,558 (Gain) loss on disposal of property, plant and equipment (28,254) (16,132) Change in assets and liabilities: Accounts and notes receivable (50,425) 1,319,157 Operating supplies and parts (30,125) (21,728) Tires in service, prepaid expenses and other current assets 145,826 273,922 Receivable from parent and affiliates (794,164) 333,038 Other noncurrent assets (226,698) (239,065) Accounts payable (234,985) (873,137) Accrued liabilities 22,721 (471,120) Income taxes payable 361,294 357,574 Other noncurrent liabilities 17,416 65,509 ----------- ----------- Net cash provided by (used in) operating activities 4,019,069 5,415,057 ----------- ----------- Cash flows from investing activities: Proceeds from sale of property, plant and equipment 73,589 119,570 Payments for property, plant and equip. (1,181,098) (2,666,149) ----------- ----------- Net cash provided by (used in) investing activities (1,107,509) (2,546,579) ----------- ----------- Cash flows from financing activities: Proceeds from long-term debt 975,166 1,593,323 Payments of long-term debt (3,857,655) (4,319,237) Preferred stock dividends (78,617) (78,617) ----------- ----------- Net cash provided by (used in) financing activities (2,961,106) (2,804,531) ----------- ----------- Increase (decrease) in cash and cash equivalents (49,546) 63,947 Cash and cash equivalents: Beginning of year 113,476 87,702 ----------- ----------- End of quarter $ 63,930 $ 151,649 =========== =========== Cash paid during the year for: Interest $ 1,010,524 $ 974,637 Income taxes $ 50,706 $ 96,926 The accompanying notes are an integral part of the condensed consolidated financial statements.
SCHWERMAN TRUCKING CO. AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS 1. CONDENSED FINANCIAL STATEMENTS In the opinion of management, the accompanying unaudited consolidated condensed financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the consolidated financial position of Schwerman Trucking Co. and Subsidiaries as of December 28, 1996 and March 30, 1996, and the consolidated results of operations for the three months and nine months ended December 28, 1996 and December 23, 1995 and changes in financial position for the nine months then ended. The results of operations for the three months and nine months ended December 28, 1996 and December 23, 1995 are not necessarily indicative of the results to be expected for a full year. Certain information and financial statement disclosures normally included in financial statements prepared in accordance with Generally Accepted Accounting Principles have been condensed or omitted pursuant to S.E.C. rules and regulations. The Company believes that the disclosures made are adequate to make the information not misleading. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's Form 10- K for the year ended March 30, 1996. 2. STATEMENT OF CASH FLOWS The Company had non-cash property, plant and equipment additions totaling $4,169,000 and $3,603,000 for the nine months ended December 28, 1996 and December 23, 1995, respectively, which were financed through capital leases and equipment obligations. 3. PREFERRED STOCK On February 3, 1997, the Company announced that it will be redeeming its preferred stock at the stated redemption price of $10.50 per share plus accumulated dividends on the Company's May 30, 1997 dividend pay date. Management's Discussion and Analysis of Financial Condition and Results of Operations RESULTS OF OPERATIONS Revenues for the three months ended December 28, 1996 were approximately $776,000 or 5.5% higher than the comparable three-month period of 1995. Revenues for the nine months ended December 28, 1996 increased approximately $967,000 or 2.1% compared to the same period of 1995. The increase in revenue is due to an increase in the number of miles traveled for the quarter and year to date and an increase in the average payload compared to the prior year. The Company opened two new terminals in March 1996, and the revenues generated at these terminals has more than offset the softness experienced at the Company's other terminals. The Company's customers are shippers or consignees of dry and liquid commodities. During fiscal 1996, 65% of the Company's shipments carried dry cement and, consequently, the Company's business is very seasonal. Dry and liquid chemicals, fertilizers and food products account for a large portion of the remaining commodities. Operating expenses increased by approximately $763,000 or 5.6% in the current quarter and increased by $1,145,000 or 2.6% for the nine months ended year to date compared to the same periods of 1995. The increase in operating expenses is due to an increase in volume related expenses, an increase in depreciation expense and an increase in fuel costs. Salaries, wages and fringe benefits increased $527,000 or 8.0% and $756,000 or 3.6% for the three months and nine months ended December 28, 1996, respectively, compared to the same periods of 1995 as a result of the increase in volume and higher health, welfare and pension costs. Fuel and fuel taxes increased $398,000 or 29.8% and $731,000 or 16.6% for the current quarter and year to date for fiscal 1996, respectively, compared to the same periods of 1995 as a result of the increase in the number of miles traveled and higher fuel prices. Insurance and workers' compensation decreased $230,000 or 24.2% and $314,000 or 10.0% for the three months and nine months ended December 28, 1996, respectively, compared to the same periods of 1995 primarily as a result of favorable experience. Depreciation and amortization increase $51,000 or 5.5% and $346,000 or 12.6% for the three months and nine months ended December 28, 1996, respectively, compared to the same periods of 1995 as a result of the purchase of 63 new tractors in April 1996. Purchased transportation decreased $185,000 or 15.2% and $835,000 or 21.1% for the current quarter and year to date for fiscal 1996, respectively, compared to the same periods of 1995 as a result of the reduced number of owner operators leased on to the Company. Rent expense decreased $68,000 or 23.8% and $313,000 or 35.8% for the current quarter and year to date for fiscal 1996, respectively, as compared to the same periods of 1995 as a result of renting fewer tractors and trailers in 1996 and as a result of lower rental rates on some equipment rented in the current year as compared to the prior year. Other operating expenses increased $236,000 or 16.8% and $704,000 or 16.0% for the three months and nine months ended December 28, 1996, respectively, compared to the same periods of 1995 as a result of the increase in volume, the increased cost of hiring and screening drivers, an increase in communication costs and higher toll charges. FINANCIAL CONDITION Total current assets decreased $115,000 at December 28, 1996 as compared to March 30, 1996 primarily as a result of the seasonal increase in accounts receivable which was more than offset by a drop in other accounts and notes receivable due to payments received. Property, plant and equipment increased $2,226,000 from 1996 fiscal year end primarily as a result of the tractors and trailers delivered in April 1996. The $794,000 increase in the receivable from parent since March 30, 1996 is also seasonal in nature. Accounts Payable decreased $235,000 at December 28, 1996 as compared to March 30, 1996 primarily as a result of the seasonal nature of the Company's business. The $361,000 and $412,000 increase in income taxes payable and noncurrent deferred income taxes, respectively, from 1996 fiscal year is a result of the timing of tax payments and intra period tax allocation. Total notes payable and long-term debt was $15,428,000 and $14,141,000 at December 28, 1996 and March 30, 1996, respectively. The $1,287,000 net increase in debt is the result of $5,144,000 in new obligations to finance the equipment additions and seasonal working capital needs less the reduction resulting from making the scheduled debt payments. CASH FLOWS The Company had a net decrease in cash of $50,000 for the nine months ended December 28, 1996 versus a $64,000 net increase for the nine months ended December 23, 1995. Cash provided by operating activities decreased by $1,396,000 for the nine months ended December 28, 1996 as compared to the same period of 1995 primarily as a result of an increase in cash requirements for working capital. Cash used in investing activities decreased $1,439,000 in the current year as compared to 1995 primarily as a result of fewer cash purchases of trailers in the current year. Cash used in financing activities increased $157,000 for the nine months ended December 28, 1996 as compared to the same period of 1995 primarily as a result of higher debt service requirements in the current year. The Company has paid $79,000 in preferred stock dividends for the nine months ended December 28, 1996, representing the required dividends for three quarters. PART II - OTHER INFORMATION Item 3. Defaults Upon Senior Securities None Item 6. Exhibits and Reports on Form 8-K (a) Exhibits - Exhibit 27. Financial Data Schedule (b) Reports on Form 8-K - February 3, 1997, reporting the redemption of the Company's Preferred cummulative convertible stock on May 30, 1997 for $10.50 per share. Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. SCHWERMAN TRUCKING CO. (Registrant) DATE: February 5, 1997 BY: Jack F. Schwerman Jack F. Schwerman Chairman of the Board, President and Treasurer EX-27 2 ARTICLE 5 FIN. DATA SCHEDULE FOR 3RD QTR 10-Q
5 1 9-MOS Mar-30-1996 Mar-31-1996 Dec-28-1996 63930 0 4864665 (40000) 1102411 7525785 60227906 (37032052) 33741955 9606531 11974654 422089 0 1497470 7122368 33741955 47937304 47937304 0 44746851 0 0 1021157 2169296 824000 1345296 0 0 0 1345296 3.00 3.00
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