-----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, VGkkN0eOvTVa1Vj0Z5JhB/JDMHIbBsV/3AK0yDYlOZ6gHSPZEkwq6n420MgVD0wa 5t6Jor9Oc7UHFiVuwVgDrA== 0000087731-96-000006.txt : 19961120 0000087731-96-000006.hdr.sgml : 19961120 ACCESSION NUMBER: 0000087731-96-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960928 FILED AS OF DATE: 19961115 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: 96667276 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 September 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 October 31, 1996 ----- ----------------- Common, $1 par value 422,089 SCHWERMAN TRUCKING CO. AND SUBSIDIARIES INDEX Page No. PART I. Financial Information: Consolidated Condensed Balance Sheet at September 28, 1996 and March 30, 1996 3 Consolidated Condensed Statements of Income for the three months and six months ended September 28, 1996 and September 23, 1995 4 Consolidated Condensed Statements of Cash Flows for the six months ended September 28, 1996 and September 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
SEPTEMBER 28, MARCH 30, ASSETS 1996 1996 ------------- ----------- (Unaudited) Current Assets: Cash and cash equivalents $ 106,312 $ 113,476 Accounts receivable (less allowances of $40,000) 6,366,349 4,033,387 Other accounts and notes receivable 440,475 801,451 Operating supplies and parts 1,117,915 1,072,286 Tires in service 849,367 741,079 Prepaid expenses 526,722 620,267 Other current assets 261,025 258,661 ----------- ----------- 9,668,165 7,640,607 ----------- ----------- Property, plant and equipment at cost 60,316,859 55,498,489 Less accumulated depreciation and amortization (36,394,360) (34,528,615) ----------- ----------- 23,922,499 20,969,874 ----------- ----------- Receivable from parent and affiliates 1,190,363 589,972 Other non-current assets 1,564,957 1,409,482 ----------- ----------- $36,345,984 $30,609,935 =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current portion of long-term debt $ 3,471,557 $ 3,042,540 Accounts payable 2,090,547 2,043,522 Accrued liabilities 4,058,376 3,600,518 Income taxes payable 402,854 31,755 Deferred income taxes - current 328,230 328,230 ----------- ----------- 10,351,564 9,046,565 ----------- ----------- Long-term debt 14,009,726 11,098,695 Deferred income taxes 2,111,025 1,746,025 Other non-current liabilities 727,519 710,610 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 6,993,799 5,855,689 ----------- ----------- 9,146,150 8,008,040 ----------- ----------- $36,345,984 $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-- --Six Months Ended-- Sept. 28, Sept. 23, Sept. 28, Sept. 23, 1996 1995 1996 1995 --------- --------- --------- --------- Revenues Operating revenues $16,643,766 $15,840,452 $31,395,068 $31,135,879 Equip. and other rentals 227,115 205,987 434,745 422,788 Other 562,066 583,836 1,093,108 1,173,867 ----------- ----------- ----------- ----------- 17,432,946 16,630,275 32,922,921 32,732,534 ----------- ----------- ----------- ----------- Operating Expenses Salaries, wages and fringe benefits 7,807,161 7,391,259 14,818,348 14,588,069 Fuel and fuel taxes 1,806,470 1,519,527 3,409,094 3,075,600 Parts, repairs and tires 1,089,063 1,013,604 1,978,064 1,967,288 Insurance and workers' compensation 1,099,108 1,051,844 2,089,355 2,172,961 Depreciation and amort. 1,060,368 913,969 2,097,515 1,802,889 Purchased transportation 1,033,642 1,400,614 2,088,755 2,739,820 Rent expense 164,900 286,667 344,207 589,261 Other operating expenses 1,787,509 1,474,420 3,468,263 3,000,418 (Gain) loss on disposal of property, plant and equipment, net (13) (3,150) (2,628) (26,752) ----------- ---------- ----------- ------------ 15,848,208 15,048,754 30,290,973 29,909,554 ----------- ---------- ----------- ------------ Operating income 1,584,738 1,581,521 2,631,948 2,822,980 Interest expense, net 359,392 317,010 711,426 674,743 ----------- ---------- ----------- ------------ Income before income taxes 1,225,346 1,264,511 1,920,522 2,148,237 Federal & state income taxes 466,000 480,000 730,000 816,000 ---------- ---------- ----------- ------------ Net Income 759,346 784,511 1,190,522 1,332,237 Dividends on preferred shrs (26,206) (26,206) (52,412) (52,412) ----------- ---------- ----------- ------------ Net income applicable common shares $ 733,140 $ 758,305 $ 1,138,110 $ 1,279,825 =========== ========== =========== ============ Weighted Average Number of Common Shares Outstanding 422,089 422,089 422,089 422,089 =========== ========== =========== ============ Net Income Per Common Share $ 1.74 $ 1.79 $ 2.70 $ 3.03 =========== ========== =========== ============ 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)
------Six Months Ended------ September 28, September 23, 1996 1995 ------------- ------------- Cash flows from operating activities: Net income $ 1,190,522 $ 1,332,237 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 2,097,515 1,802,889 Provision for deferred income taxes 365,000 408,000 (Gain) loss on disposal of property, plant and equipment (2,628) (26,752) Change in assets and liabilities: Accounts and notes receivable (1,971,986) (1,194,005) Operating supplies and parts (45,629) (55,896) Tires in service, prepaid expenses and other current assets (17,107) 13,051 Receivable from parent and affiliates (600,391) (115,513) Other noncurrent assets (155,475) (186,028) Accounts payable 47,025 (109,025) Accrued liabilities 457,858 152,955 Income taxes payable 371,099 312,980 Other noncurrent liabilities 16,909 49,939 ----------- ----------- Net cash provided by (used in) operating activities 1,752,712 2,384,832 ----------- ----------- Cash flows from investing activities: Proceeds from sale of property, plant and equipment 29,928 65,120 Payments for property, plant and equipment (908,056) (1,896,948) ----------- ----------- Net cash provided by (used in) investing activities (878,128) (1,831,828) ----------- ----------- Cash flows from financing activities: Proceeds from long-term debt 1,815,166 1,676,544 Payments of long-term debt (2,644,502) (1,993,402) Preferred stock dividends (52,412) (52,412) ----------- ----------- Net cash provided by (used in) financing activities (881,748) (369,270) ----------- ----------- Increase (decrease) in cash & cash equivalents (7,164) 183,734 Cash and cash equivalents: Beginning of year 113,476 87,702 ----------- ----------- End of quarter $ 106,312 $ 271,436 =========== =========== Cash paid (received) during the year for: Interest $ 691,880 $ 649,818 Income taxes $ (6,099) $ 95,020 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 September 28, 1996 and March 30, 1996, and the consolidated results of operations for the three months and six months ended September 28, 1996 and September 23, 1995 and changes in financial position for the six months then ended. The results of operations for the three months and six months ended September 28, 1996 and September 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 six months ended September 28, 1996 and September 23, 1995, respectively, which were financed through capital leases and equipment obligations. Management's Discussion and Analysis of Financial Condition and Results of Operations RESULTS OF OPERATIONS Revenues for the three months ended September 28, 1996 were approximately $803,000 or 4.8% higher than the comparable three-month period of 1995. Revenues for the six months ended September 28, 1996 increased approximately $190,000 or .6% 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 has 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 were 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 $799,000 or 5.3% in the current quarter and increased by $381,000 or 1.3% for the six months ended year to date compared to the same periods of 1995. The increase in operating expenses is due to the increase in volume, the increase in depreciation expense and the increase in fuel expense. Salaries, wages and fringe benefits increased $416,000 or 5.6% and $230,000 or 1.6% for the three months and six months ended September 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 $287,000 or 18.9% and $333,000 or 10.8% 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. Depreciation and amortization increase $146,000 or 16.0% and $295,000 or 16.3% for the three months and six months ended September 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 $367,000 or 26.2% and $651,000 or 23.8% 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 $122,000 or 42.5% and $245,000 or 41.6% 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 $313,000 or 21.2% and $468,000 or 15.6% for the three months and six months ended September 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 increased $2,028,000 at September 28, 1996 as compared to March 30, 1996 primarily as a result of the seasonal increase in accounts receivable offset in part by a drop in other accounts and notes receivable due to a payment received in April 1996. Property, plant and equipment increased $4,818,000 from 1996 fiscal year end primarily as a result of the tractors and trailers delivered in April 1996. The $600,000 increase in the receivable from parent since March 30, 1996 is also seasonal in nature. Accrued liabilities increased $458,000 at September 28, 1996 as compared to March 30, 1996 primarily as a result of the seasonal nature of the Company's business. The $371,000 and $366,000 increase in income taxes payable and noncurrent deferred income taxes, respectively, from 1996 fiscal year and is a result of intra period tax allocation and the seasonal nature of the Company's business. Total notes payable and long-term debt was $17,481,000 and $14,141,000 at September 28, 1996 and March 30, 1996, respectively. The $3,340,000 net increase in debt is the result of $5,984,000 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 $7,000 for the six months ended September 28, 1996 versus a $184,000 net increase for the six months ended September 23, 1995. Cash provided by operating activities decreased by $632,000 for the six months ended September 28, 1996 as compared to the same period of 1995 primarily as a result of lower net income in the current year and an increase in cash requirements for working capital. Cash used in investing activities decreased $953,000 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 $512,000 primarily as a result of making the scheduled payments. The Company has paid $52,000 in preferred stock dividends for the six months ended September 28, 1996, representing the required dividends for two 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 - November 1, 1996, reporting the reorganization of the Company's Sales Department and the resignation of the Vice President - Sales, a Director of the Company. 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: November 8, 1996 BY: Jack F. Schwerman Jack F. Schwerman Chairman of the Board, President and Treasurer EX-27 2 ARTICLE 5 FIN. DATA SCHEDULE FOR 2ND QTR 10-Q
5 1 6-MOS Mar-30-1996 Mar-31-1996 Sep-28-1996 106312 0 3406349 (40000) 1117915 9668165 60316859 (36394360) 36345984 10351564 14009726 422089 0 1497470 6996799 36345984 32922921 32922921 0 30290973 0 0 711426 1920522 730000 1190522 0 0 0 1190522 2.70 2.70
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