-----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, DN2p02yx9XLaaGqns9ITzq9lw20S4GRB3TAiUe8AD0wZqia0IUtKQWMWEZimnuRm /cftyMpTmn1EulVlemDVnw== 0000950134-97-002715.txt : 19970409 0000950134-97-002715.hdr.sgml : 19970409 ACCESSION NUMBER: 0000950134-97-002715 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970301 FILED AS OF DATE: 19970408 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: NORWOOD PROMOTIONAL PRODUCTS INC CENTRAL INDEX KEY: 0000902793 STANDARD INDUSTRIAL CLASSIFICATION: APPAREL & OTHER FINISHED PRODS OF FABRICS & SIMILAR MATERIAL [2300] IRS NUMBER: 742553074 STATE OF INCORPORATION: TX FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-21800 FILM NUMBER: 97576396 BUSINESS ADDRESS: STREET 1: 70 NE LOOP 410 SUITE 295 STREET 2: THE RENAISSANCE PLAZA CITY: SAN ANTONIO STATE: TX ZIP: 78216 BUSINESS PHONE: 2103419440 10-Q 1 FORM 10-Q PERIOD ENDED 3/1/97 1 United States Securities and Exchange Commission Washington, D.C. 20549 FORM 10-Q (MARK ONE) [x] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Period Ended March 1, 1997 or [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934 for the Transition Period From ________to________ Commission file number 0-21800 NORWOOD PROMOTIONAL PRODUCTS, INC. - ------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) TEXAS 74-2553074 ----- ---------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 70 N.E. LOOP 410, SUITE 295 SAN ANTONIO, TEXAS 78216 - ------------------------------------------------------------------------------- (Address of Principal executive offices) (Zip Code) (210) 341-9440 - ------------------------------------------------------------------------------- (Registrant's telephone number, including area code) - ------------------------------------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report) 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 periods 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 --- --- Applicable Only to Corporate Issuers Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 5,621,040 shares of Common Stock, no par value, as of April 1, 1997. 2 NORWOOD PROMOTIONAL PRODUCTS, INC. INDEX TO FORM 10-Q QUARTER ENDED MARCH 1, 1997
PAGE NO. PART I. Financial Information Item 1. Interim Condensed Consolidated Financial Statements (Unaudited) Condensed Consolidated Statements of Income 3 Condensed Consolidated Balance Sheets 4 Consolidated Statements of Cash Flows 5 Consolidated Statements of Shareholders' Equity 6 Notes to Consolidated Financial Statements 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 8 PART II. Other Information Item 4. Submission to a Vote of Shareholders 12 Item 6. Exhibits and Reports on Form 8-K 13 SIGNATURES 14 Index to Exhibits 15
2 3 NORWOOD PROMOTIONAL PRODUCTS, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED SIX MONTHS ENDED ----------------------- ----------------------- MARCH 1, MARCH 2, MARCH 1, MARCH 2, 1997 1996 1997 1996 ---------- ---------- ---------- ---------- Sales $ 37,270 $ 30,086 $ 79,446 $ 63,454 Cost of sales 27,346 21,624 57,368 44,369 ---------- ---------- ---------- ---------- Gross profit 9,924 8,462 22,078 19,085 Operating expenses 8,921 7,545 17,862 14,741 ---------- ---------- ---------- ---------- Operating income 1,003 917 4,216 4,344 Interest expense 791 709 1,605 1,869 ---------- ---------- ---------- ---------- Income before income taxes 212 208 2,611 2,475 Provision for income taxes 47 120 1,006 1,030 ---------- ---------- ---------- ---------- Net income $ 165 $ 88 $ 1,605 $ 1,445 ========== ========== ========== ========== Net income per common share: Primary $ 0.03 $ 0.02 $ 0.28 $ 0.33 Fully Diluted 0.03 0.02 0.28 0.33 Weighted average number of common shares outstanding: Primary 5,800 5,055 5,775 4,383 Fully Diluted 5,800 5,055 5,775 4,383
See accompanying notes. 3 4 NORWOOD PROMOTIONAL PRODUCTS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS)
MARCH 1, AUGUST 31, 1997 1996 ---------- ---------- ASSETS (UNAUDITED) (AUDITED) Current Assets: Cash and cash equivalents $ 1,037 $ 1,861 Accounts receivable 19,298 21,621 Other receivables 676 724 Inventories 32,941 31,823 Prepaid expenses and other current assets 3,151 2,231 ---------- ---------- Total current assets 57,103 58,260 Property, plant and equipment, net 20,913 19,585 Goodwill 40,130 35,266 Deferred income taxes 751 751 Other assets 9,067 7,514 ---------- ---------- Total assets $ 127,964 $ 121,376 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Trade accounts payable $ 9,469 $ 10,269 Accrued liabilities 4,735 5,920 Income taxes payable 30 129 Current portion of long-term debt 7,406 6,694 ---------- ---------- Total current liabilities 21,640 23,012 Long-term debt, excluding current portion 47,253 40,984 Shareholders' equity: Common stock, no par value; 20,000,000 shares authorized; 5,622,470 and 5,615,791 shares issued and 5,621,040 and 5,614,361 shares outstanding at March 1, 1997 and August 31, 1996, respectively 51,651 51,568 Additional paid-in capital 369 369 Less cost of treasury stock, 1,430 shares at March 1, 1997 and August 31, 1996 respectively (8) (8) Retained earnings 7,070 5,465 ---------- ---------- 59,082 57,394 Less receivables for purchase of common stock (11) (14) ---------- ---------- Total shareholders' equity 59,071 57,380 ---------- ---------- Total liabilities and shareholders' equity $ 127,964 $ 121,376 ========== ==========
See accompanying notes. 4 5 NORWOOD PROMOTIONAL PRODUCTS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED, IN THOUSANDS)
SIX MONTHS ENDED -------------------- MARCH 1, MARCH 2, 1997 1996 -------- -------- OPERATING ACTIVITIES Net income $ 1,605 $ 1,445 Adjustments to reconcile net income to net cash provided by operating activities: Deprecation 2,099 1,246 Amortization 1,904 1,561 (Gain) loss on sale of property & equipment -- (18) Changes in operating assets and liabilities, net of effect of acquisitions: Accounts receivable, net 3,710 3,569 Inventory (860) (1,568) Prepaid expenses and other (1,274) (830) Other receivables 48 99 Accounts payable (2,881) (2,455) Accrued liabilities (1,478) (891) Income taxes payable (78) (756) -------- -------- Net cash provided by operating activities 2,795 1,402 INVESTING ACTIVITIES Business acquisitions, net of cash (8,228) (10,809) Purchase of property, plant & equipment (2,487) (1,959) Proceeds from retirement of property, plant & equipment 28 26 -------- -------- Net cash used in investing activities (10,687) (12,742) FINANCING ACTIVITIES Proceeds from long-term debt 36,940 29,200 Payments on long-term debt (29,958) (50,290) Debt refinancing fees -- (25) Payments on common stock and shareholder notes 86 39 Proceeds from stock offering -- 31,176 -------- -------- Net cash provided by financing activities 7,068 10,100 -------- -------- Net change in cash (824) (1,240) Cash at beginning of period 1,861 2,174 -------- -------- Cash at end of period $ 1,037 $ 934 ======== ========
See accompanying notes. 5 6 NORWOOD PROMOTIONAL PRODUCTS, INC. CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (UNAUDITED, IN THOUSANDS)
COMMON STOCK ADDITIONAL RECEIVABLES FOR PURCHASES TOTAL ------------ PAID-IN RETAINED PURCHASES OF OF TREASURY SHAREHOLDERS' SHARES AMOUNT CAPITAL EARNINGS COMMON STOCK STOCK EQUITY ---------- ---------- ---------- ---------- ---------- ---------- ---------- Balance at August 31, 1996 5,616 $ 51,568 $ 369 $ 5,465 $ (14) $ (8) $ 57,380 Purchases of common stock 6 83 83 Payment on shareholder notes 3 3 Net income 1,605 1,605 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Balance at March 1, 1997 5,622 $ 51,651 $ 369 $ 7,070 $ (11) $ (8) $ 59,071 ========== ========== ========== ========== ========== ========== ==========
See accompanying notes 6 7 NORWOOD PROMOTIONAL PRODUCTS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS THREE MONTHS ENDED MARCH 1, 1997 AND MARCH 2, 1996 1. SIGNIFICANT ACCOUNTS POLICIES The consolidated financial statements include the accounts of Air-Tex Corporation ("Air-Tex"), ArtMold Products Corporation ("ArtMold"), Barlow Promotional Products, Inc. ("Barlow"), Key Industries, Inc. ("Key"), Radio Cap Company, Inc. ("RCC"), Norwood Travel, Inc. and Norcorp, Inc. ("Norcorp") and have been presented in accordance with the reporting requirements for interim financial statements. Such requirements do not include all of the disclosures normally required by generally accepted accounting principles or those normally made in an Annual Report of the registrant on Form 10-K. The information furnished herein reflects all adjustments which, in the opinion of management, are of a normal recurring nature and necessary for a fair statement of the results of interim periods. Such results for interim periods are not necessarily indicative of the results to be expected for a full year, principally due to seasonal fluctuations in product line revenue. 2. INVENTORIES Inventories at March 1, 1997 and August 31, 1996 consist of (in thousands):
MARCH 1, AUGUST 31, 1997 1996 ----------- --------- Raw materials $ 10,731 $ 9,132 Work in process 1,241 1,099 Finished goods 20,969 21,592 ----------- --------- Total $ 32,941 $ 31,823 =========== =========
3. ACQUISITIONS On February 14, 1997, the Company, through its wholly-owned subsidiary Artmold, acquired substantially all of the assets of Wesburn Golf. Wesburn Golf is a leading supplier of logo-imprinted golf balls. In connection with the acquisition, the Company paid approximately $6.8 million in cash, notes payable and non-competition agreements and assumed or incurred liabilities of approximately $1.5 million. 7 8 NORWOOD PROMOTIONAL PRODUCTS, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS GENERAL The following is Management's discussion and analysis of the results of operations and financial condition of Norwood Promotional Products, Inc. and its subsidiaries ("the Company") during the periods included in the accompanying consolidated financial statements. The discussion below relates to material changes in the results of operations for the three and six months ended March 1, 1997 as compared to the same period ended March 2, 1996, and to material changes in the financial condition of the Company occurring since the prior fiscal year end of August 31, 1996. The Company's results of operations for the periods discussed below were significantly affected by the acquisitions of Ocean Specialty Manufacturing Corporation (acquired in November 1995), TEE-OFF Enterprises, Inc. (acquired in January 1996), Alpha Products, Inc. (acquired in April 1996) and Wesburn Golf (acquired in February 1997) (collectively referred to as the "fiscal 1996 and 1997 acquisitions"). For further information, refer to the Company's Annual Report on Form 10-K for the year ended August 31, 1996. THREE MONTHS ENDED MARCH 1, 1997 COMPARED WITH THREE MONTHS ENDED MARCH 2, 1996 Sales for the second quarter of fiscal 1997 increased $7.2 million, or 23.9%, to $37.3 million from $30.1 million in the second quarter of fiscal 1996. Of this increase, $2.0 million was attributable to increased sales of the Company's core product lines, and $5.2 million was due to sales generated by the fiscal 1996 and 1997 acquisitions. Gross profit for the second quarter of fiscal 1997 increased $1.4 million, or 17.3%, to $9.9 million from $8.5 million in the second quarter of fiscal 1996. This increase was attributable to the fiscal 1996 and 1997 acquisitions and to improved margins on the Company's pre-existing businesses. Excluding the fiscal 1996 and 1997 acquisitions, gross profit as a percentage of sales increased from 28.7% to 30.5%. Including the fiscal 1996 and 1997 acquisitions, gross profit as a percentage of sales decreased from 28.1% to 26.6%. This decrease was attributable to the fiscal 1996 and 1997 acquisitions which operate in market segments that traditionally have lower gross profit percentages than the Company's pre-existing businesses. Operating expenses for the second quarter of fiscal 1997 increased $1.4 million, or 18.2%, to $8.9 million from $7.5 million in the second quarter of fiscal 1996. This increase was primarily attributable to the fiscal 1996 and 1997 acquisitions. Operating expenses as a percentage of sales decreased from 25.1% to 23.9%. This decrease is primarily a result of the effort undertaken in the fourth quarter of fiscal 1996 to consolidate operations by realigning the subsidiaries into three primary operating groups and to other cost saving initiatives undertaken by management. Operating income for the second quarter of fiscal 1997 increased $86,000, or 9.4%, to $1.0 million from $917,000 in the second quarter of fiscal 1996. Operating income as a percentage of sales decreased from 3.0% to 2.7%. This percentage decrease was mainly attributable to a lower contribution from the Alpha product line retail division. Excluding the Alpha division, operating income as a percentage of sales increased from 3.0% to 4.8%. Interest expense was $791,000 for the second quarter of fiscal 1997 compared to $709,000 in the second quarter of fiscal 1996. The increase was attributable to borrowings used to finance the fiscal 1996 and 1997 acquisitions. 8 9 The Company's effective tax rate was 22.2% during the second quarter of fiscal 1997 compared with 57.7% in the second quarter of fiscal 1996. The Company's tax rate was favorably impacted by a partial tax refund received during fiscal 1997. As a result of the above, net income for the second quarter of fiscal 1997 increased $77,000, or 87.5%, to $165,000 from $88,000 in the second quarter of fiscal 1996. SIX MONTHS ENDED MARCH 1, 1997 COMPARED WITH SIX MONTHS ENDED MARCH 2, 1996 Sales for the first six months of fiscal 1997 increased $16.0 million, or 25.2%, to $79.4 million from $63.4 million in the first six months of fiscal 1996. Of this increase, $3.7 million was attributable to increased sales of the Company's core product lines, and $12.3 million was due to sales generated by the fiscal 1996 and 1997 acquisitions. Gross profit for the first six months of fiscal 1997 increased $3.0 million, or 15.7%, to $22.1 million from $19.1 million in the first six months of fiscal 1996. This increase was attributable to the fiscal 1996 and 1997 acquisitions and to improved margins on the Company's pre-existing businesses. Excluding the fiscal 1996 and 1997 acquisitions, gross profit as a percentage of sales increased from 30.4% to 31.5%. Including the fiscal 1996 and 1997 acquisitions, gross profit as a percentage of sales decreased from 30.1% to 27.8%. This decrease was attributable to the fiscal 1996 and 1997 acquisitions which operate in market segments that traditionally have lower gross profit percentages than the Company's pre-existing businesses. Operating expenses for the first six months of fiscal 1997 increased $3.2 million, or 21.2%, to $17.9 million from $14.7 million in the first six months of fiscal 1996. This increase was primarily attributable to the fiscal 1996 and 1997 acquisitions. Operating expenses as a percentage of sales decreased from 23.2% to 22.5%. This decrease is primarily a result of the effort undertaken in the fourth quarter of fiscal 1996 to consolidate operations by realigning the subsidiaries into three primary operating groups and to other cost saving initiatives undertaken by management. Operating income for the first six months of fiscal 1997 decreased $128,000, or 2.9%, to $4.2 million from $4.3 million in the first six months of fiscal 1996. Operating income as a percentage of sales decreased from 6.8% to 5.3%. This percentage decrease was mainly attributable to a lower contribution from the Alpha product line retail division. Excluding the Alpha division, operating income as a percentage of sales increased from 6.8% to 7.4%. Interest expense was $1.6 million for the first six months of fiscal 1997 compared to $1.9 million in the first six months of fiscal 1996. The decrease was attributable to the use of the proceeds received from the December 1995 stock offering to pay down debt, offset by borrowings used to finance the fiscal 1996 and 1997 acquisitions. The Company's effective tax rate was 38.5% during the first six months of fiscal 1997 compared with 41.6% in the first six months of fiscal 1996. The Company's tax rate was favorably impacted by a partial tax refund received during fiscal 1997. As a result of the above, net income for the first six months of fiscal 1997 increased $160,000, or 11.1 %, to $1.6 million from $1.4 million in the first six months of fiscal 1996. 9 10 LIQUIDITY AND CAPITAL RESOURCES The Company has financed its business activities primarily with borrowings under the bank credit facility (the "Bank Credit Facility"), notes payable to former owners of acquired businesses, the sale of Common Stock and cash provided from operations. The Bank Credit Facility provides for aggregate borrowings of up to $60.0 million, comprised of a $20.0 million revolving credit facility ($14.2 million outstanding at March 1, 1997), a $21.5 million term loan facility ($10.4 million outstanding at March 1, 1997) and an $18.5 million acquisition loan facility ($14.2 million outstanding at March 1, 1997). The revolving loan facility is available to finance acquisitions and for working capital and general corporate purposes. The acquisition loan facility is available to finance acquisitions. Pursuant to the terms of the Bank Credit Facility, the Company is required to maintain certain financial ratios and minimum tangible net worth and is subject to a prohibition on dividends and limitations on additional indebtedness, liens, investments, issuance of stock of subsidiaries, changes in management and ownership, mergers and acquisitions, sale/leaseback transactions and sales of assets. An event of default occurs under the Bank Credit Facility if any person becomes the owner of more than 35.0% of the outstanding capital stock of the Company or if within a 12-month period, a majority of the Company's Board of Directors shall be comprised of new directors. The Company is required to make quarterly amortization payments on certain amounts outstanding under the Bank Credit Facility. The final maturity of the Bank Credit Facility is July 31, 2000. Amounts outstanding under the Bank Credit Facility bear interest at a rate equal to either the agent bank's prime rate or the London Interbank Offered Rate, plus an interest rate spread which varies based on the ratio of the Company's Consolidated Senior Funded Debt to Earnings Before Interest, Taxes, Depreciation and Amortization (as such terms are defined in the Bank Credit Facility). Indebtedness under the Bank Credit Facility is secured by a first lien priority security interest in substantially all the assets of the Company, including a pledge of the stock of each of the Company's subsidiaries. Additionally, any entities and assets acquired with financing under the Bank Credit Facility will serve as security. Borrowings under the Bank Credit Facility are jointly and severally guaranteed by all subsidiaries acquired or created by the Company. On December 20, 1995, the Company completed the sale of 2,015,481 shares of Common Stock in a public offering. The net proceeds of this offering of approximately $31 million were used to prepay indebtedness under the Bank Credit Facility. The Company may, subject to certain conditions, reborrow such amounts from time to time for general corporate purposes, including financing future acquisitions. WORKING CAPITAL AND CAPITAL EXPENDITURES Net cash provided by operating activities was $2.8 million and $1.4 million for the six months ended March 1, 1997 and March 2, 1996, respectively. Capital expenditures were approximately $2.5 million and $2.0 million for the six months ended March 1, 1997 and March 2, 1996, respectively. During the current fiscal year, the Company's principal capital needs will be to finance any future acquisitions and ongoing capital expenditures. Although the Company currently believes that cash flow from operations and available borrowings under the Bank Credit Facility will be sufficient to meet the Company's working capital and capital expenditure requirements and future debt service obligations for at least the next 12 months, there can be no assurance that this will be the case. The Company believes its fiscal 1997 capital expenditure requirements will be approximately $4.5 million primarily to acquire additional processing equipment, management information systems, furniture and fixtures and leasehold improvements. 10 11 FORWARD LOOKING STATEMENTS This report contains forward looking statements within the meaning of Sections 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended, that are not historical facts. Such statements may include, but not be limited to, projections of revenues, income, capital expenditures, plans for future operations, financing needs or plans, and plans relating to products or services of the Company, as well as assumptions relating to the foregoing. These statements involve management assumptions and are subject to risks and uncertainties, including those set forth below, along with factors set forth in the Company's Annual Report on Form 10-K in "Business--Risk Factors". The following factors could affect the Company's results, causing such results to differ materially from those in any forward looking statement contained in this report: (i) the failure of the Company to maintain or control its internal growth or that the Company will be able to manage its expanding operations effectively; (ii) a change in risks inherent in the Company's foreign sourcing of supplies; (iii) the loss of services of one or more key management personnel; (iv) a change in the risks inherent in the Company's leverage position; (v) the loss of the Company's single supplier of Koozie(R) insulation material; and (vi) an increase in competition. 11 12 NORWOOD PROMOTIONAL PRODUCTS, INC. FORM 10-Q FOR THE QUARTER ENDED MARCH 1, 1997 PART II Item 4. Submission to a Vote of Shareholders At the annual meeting of shareholders of the Company held on Tuesday, January 21, 1997, the shareholders: (1) Elected the following directors: Frank P. Krasovec, Robert P. Whitesell, Robert L. Seibert, John H. Wilson III, John H. Josephson, Harold Holland and Roy D. Terracina.
Election of Directors For Withheld - --------------------- --- -------- Frank P. Krasovec 4,416,603 3,800 Robert P. Whitesell 4,416,603 3,800 Robert L. Seibert 4,416,603 3,800 John H. Wilson III 4,416,603 3,800 John H. Josephson 4,414,603 5,800 Harold Holland 4,366,671 53,732 Roy D. Terracina 4,416,603 3,800
(2) Approved an amendment to the Norwood Promotional Products, Inc. Incentive Stock Compensation Plan to increase the number of shares of Common Stock available for issuance under the Plan from 190,000 shares to 410,000 shares. For Against Abstain --- ------- ------- 3,674,503 738,360 7,540 (3) Ratified the appointment by the Board of Directors of the firm of Ernst & Young LLP as independent public accountants of the Company for the fiscal year ending August 30, 1997. For Against Abstain --- ------- ------- 4,365,837 800 53,766 12 13 NORWOOD PROMOTIONAL PRODUCTS, INC. FORM 10-Q FOR THE QUARTER ENDED MARCH 1, 1997 PART II Item 6. Exhibits and Reports on Form 8-K 6 (a) Exhibits: See Index to Exhibits. 6 (b) Reports on Form 8-K: The following is the date and description of the events reported on Forms 8-K filed during the second quarter of 1997:
Date of Earliest Event Reported on Form 8-K Description ---------------------- ----------- None
13 14 SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Norwood Promotional Products, Inc. --------------------------------------- (Registrant) Date: April 1, 1997 /s/ J. Max Waits --------------------------------------- J. Max Waits Secretary, Treasurer and Chief Financial Officer 14 15 INDEX TO EXHIBITS EXHIBIT NUMBER DESCRIPTION 11.0 -- Computation of earnings per share 27.0 -- Financial data schedule 15 EX-11.0 2 COMPUTATION OF EARNINGS PER SHARE 1 EXHIBIT 11.0 COMPUTATION OF EARNINGS PER SHARE (UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED SIX MONTHS ENDED ----------------- ------------------ MARCH 1, MARCH 2, MARCH 1, MARCH 2, 1997 1996 1997 1996 ----- ------ ------ ------ PRIMARY: Weighted average common shares outstanding 5,620 4,883 5,615 4,213 Weighted average common equivalent shares 180 172 160 170 outstanding ------ ------ ------ ------ Total 5,800 5,055 5,775 4,383 ====== ====== ====== ====== Net Income $ 165 $ 88 $1,605 $1,445 Per share amount $ 0.03 $ 0.02 $ 0.28 $ 0.33 FULLY DILUTED: Weighted average common shares outstanding 5,620 4,883 5,615 4,213 Weighted average common equivalent shares 180 172 160 170 outstanding ------ ------ ------ ------ Total 5,800 5,055 5,775 4,383 ====== ====== ====== ====== Net Income $ 165 $ 88 $1,605 $1,445 Per share amount $ 0.03 $ 0.02 $ 0.28 $ 0.33
16 EX-27.0 3 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS OF NORWOOD PROMOTIONAL PRODUCTS, INC. FOR THE SIX MONTHS ENDED MARCH 1, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH 10-Q. 1,000 6-MOS AUG-30-1997 SEP-01-1996 MAR-01-1997 1,037 0 19,918 620 32,941 57,103 32,987 12,074 127,964 21,640 0 0 0 51,651 7,420 127,964 79,446 79,446 57,368 57,368 17,862 0 1,605 2,611 1,006 1,605 0 0 0 1,605 0.28 0.28
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