0000935799-95-000014.txt : 19950811 0000935799-95-000014.hdr.sgml : 19950811 ACCESSION NUMBER: 0000935799-95-000014 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950810 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: SIMPSON INDUSTRIES INC CENTRAL INDEX KEY: 0000090588 STANDARD INDUSTRIAL CLASSIFICATION: MOTOR VEHICLE PARTS & ACCESSORIES [3714] IRS NUMBER: 381225111 STATE OF INCORPORATION: MI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-06611 FILM NUMBER: 95560713 BUSINESS ADDRESS: STREET 1: 32100 TELEGRAPH RD - SUITE 120 CITY: BINGHAM FARMS STATE: MI ZIP: 48025 BUSINESS PHONE: 3135406200 MAIL ADDRESS: STREET 1: 32100 TELEGRAPH ROAD STREET 2: SUITE 120 CITY: BINGHAM FARMS STATE: MI ZIP: 48025-2453 10-Q 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 For Quarter Ended June 30, 1995 Commission File Number 0-6611 SIMPSON INDUSTRIES, INC. (Exact name of registrant as specified in its charter) Michigan 38-1225111 (State or other jurisdiction of (IRS Employer Identification No.) incorporation or organization) 47603 Halyard Drive, Plymouth, Michigan 48170 (Address of principal executive offices) (Zip Code) (313)207-6200 (Registrant's telephone number, including area code) 32100 Telegraph Road, Suite 120, Bingham Farms, Michigan, 48025 (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 and (2) has been subject to such filing requirements for the past 90 days. Yes X No At July 31, 1995 there were 17,980,224 outstanding shares of the registrant's common stock, $1.00 par value each. Consolidated Balance Sheets (Unaudited) (In thousands) June 30, 1995 and December 31, 1994 June 30 Dec. 31 ASSETS Current Assets Cash and cash equivalents $ 14,399 $ 2,321 Marketable securities, at cost 0 2,491 Accounts receivable 52,948 48,203 Inventories 10,287 11,221 Customer tooling in process 462 1,057 Prepaid expenses and other current assets 4,549 5,245 Total Current Assets 82,645 70,538 Property, Plant and Equipment Cost 238,569 228,880 Less Allowance 101,573 93,847 136,996 135,033 Other Assets 6,140 1,413 $225,781 $206,984 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Current installment of long-term debt $ 1,741 $ 2,125 Accounts payable 20,477 20,679 Compensation and amounts withheld 7,835 8,980 Taxes, other than income taxes 2,135 2,492 Other accrued expenses 5,505 4,611 Total Current Liabilities 37,693 38,887 Long-Term Debt, excluding current installment 62,559 50,375 Accrued Retirement Benefits 11,133 10,414 Deferred Income Taxes 9,455 9,269 Shareholders' Equity 104,941 98,039 $225,781 $206,984 Consolidated Statement of Operations (Unaudited) (dollars in thousands, except per share amounts) Periods Ended June 30, 1995 and 1994 Six Months Three Months 1995 1994 1995 1994 Net sales $210,837 $174,016 $103,600 $91,315 Costs and expenses: Cost of products sold 186,544 153,790 91,688 80,635 Administrative and selling 5,266 4,798 2,857 2,712 191,810 158,588 94,545 83,347 Operating Earnings 19,027 15,428 9,055 7,968 Investment and other income, net 796 477 462 181 Interest expense (2,862) (2,147) (1,481) (926) Earnings Before Income Taxes 16,961 13,758 8,036 7,223 Income taxes 6,488 5,196 3,125 2,745 Net Earnings $ 10,473 8,562 $ 4,911 $ 4,478 Net Earnings Per Share-Note 2 $.58 $.48 $.27 $.25 Cash dividends per share-Note 2 $.20 $.18 $.10 $.09 Average number of common equivalent shares-Note 2 18,027,830 18,000,024 18,050,093 18,009,907 Consolidated Statements of Cash Flows (Unaudited) (in thousands) Six Months Ended June 30, 1995 and 1994 1995 1994 OPERATING ACTIVITIES Net Earnings $10,473 $ 8,562 Depreciation 9,052 7,849 Provision for deferred income taxes 187 133 Amortization of restricted stock 167 180 (Gain) loss on disposition of assets (128) 20 Changes in operating assets and liabilities (7,338) (324) Cash Provided By Operating Activities 12,413 16,420 INVESTING ACTIVITIES Sale of marketable securities 2,491 0 Capital expenditures (11,228) (17,902) Proceeds from disposal of property and equipment 341 403 Cash Used In Investing Activities (8,396) (17,499) FINANCING ACTIVITIES Cash dividends paid (3,595) (3,345) Proceeds from long-term borrowings, net 11,800 7,000 Cash provided by stock transactions, net 26 36 Cash Provided By Financing Activities 8,231 3,691 Effect of foreign currency exchange rate changes (170) (505) Increase In Cash and Cash Equivalents 12,078 2,107 Cash and cash equivalents at beginning of period 2,321 15,493 Cash and Cash Equivalents At End of Period $14,399 $17,600 Notes to Condensed Consolidated Financial Statements Note 1. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial reporting. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of operations for the period ended June 30, 1995 are not necessarily indicative of the results to be expected for the year ending December 31, 1995. Note 2. The computation of earnings per share, dividends per share and average number of common shares outstanding for the three and six months ending June 30, 1994 have been restated to reflect a 3-for-2 stock distribution as of July 28, 1994. ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Net sales increased 21.2%, or $36,821,000, from the first six months of 1994. Net sales in the second quarter of 1995 increased 13.5%, or $12,285,000, from the second quarter of 1994. The increased sales for the quarter and the six months was primarily attributable to the impact of the new product programs put into production during the past 18 months. North American production of automobiles and light trucks decreased 5% from last year during the second quarter and decreased 1% during the six month period. However, volume increased significantly in the heavy duty business, primarily with Caterpillar and Consolidated Diesel. Cost of products sold, as a percent of sales, for the first six months of 1995, compared to the first half of 1994 remained approximately the same at 88.5%. Cost of products sold, as a percent of sales, compared to the second quarter of the prior year, remained approximately the same at 88.5%, compared to 88.3%. Administrative and selling costs as a percent of sales decreased for the six- and three-month periods ended June 30, 1995, compared to the same periods of 1994 due to higher sales volume. Interest expense increased from 1994 as a result of additional long-term debt obtained in the first quarter of 1995. In January 1995, the Company entered into bank term loan agreements for $20,000,000 and $4,050,000. The Company borrowed $20,000,000 at an interest rate of 8.45%, payable quarterly, with repayment of principal due in twenty quarterly installments commencing in July 2000. Additionally, the Company's Mexican subsidiary borrowed $4,050,000 at an interest rate of 8.82%, payable monthly, with repayment of principal due in eighty-four equal monthly installments commencing in February 1996. In the first half of 1995, payments of long-term borrowings totaled $12,250,000, resulting in net proceeds from long-term borrowings of $11,800,000. The Company invests in equipment and facilities to produce components for automotive, truck and engine programs. Cash flows from operations and net proceeds from long-term borrowings, discussed above, exceeded these investments and dividends paid, resulting in a $12,078,000 increase in cash and cash equivalents in the first half of 1995. With a quick ratio of 1.8 to 1 and a total debt-to-invested capital ratio of 38%, the Company's financial condition remains strong. PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K There were no reports filed on Form 8-K for the quarter ended June 30, 1995. Exhibit (11) - Computation of Earnings Per Share Six Months Ended Three Months Ended June 30 June 30 1995 1994 1995 1994 Primary Average number of common shares outstanding-Note 2 $17,962,217 $17,905,137 $17,980,769 $17,920,782 Dilutive stock options outstand- ing-Note 2 65,613 94,887 69,324 89,125 Average number of common and common equivalent shares $18,027,830 $18,000,024 $18,050,093 $18,009,907 Net earnings appli- cable to common stock and common stock equivalents $10,473,000 $8,562,000 $4,911,000 $4,478,000 Primary earnings per share $.58 $.48 $.27 $.25 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. SIMPSON INDUSTRIES, INC. Registrant August 9, 1995 /S/ROY E. PARROTT Roy E. Parrott President and Chief Executive Officer August 9, 1995 /S/JAMES E. GARPOW James E. Garpow Controller and Assistant Secretary EX-27.1 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE COMPANY'S UNAUDITED FINANCIAL STATEMENTS AS OF AND FOR THE PERIOD ENDING JUNE 30, 1995, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS 1,000 DEC-31-1995 JUN-30-1995 6-MOS 14,399 0 52,948 0 10,287 82,645 238,569 101,573 225,781 37,693 62,559 17,980 0 0 86,961 225,781 210,837 211,633 186,544 5,266 0 0 2,862 16,961 6,488 10,473 0 0 0 10,473 0.58 0.58