-----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, TTQCTIEzCsBrngfPgbUz+bsUp4MJ2w82NbNIX3lnq3mMI9pBMijUXZieRIHSGYtI EEz+SfY+lWdmyvxUytZeTg== 0000935799-95-000016.txt : 19951119 0000935799-95-000016.hdr.sgml : 19951119 ACCESSION NUMBER: 0000935799-95-000016 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951114 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: 95591547 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 September 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 incorporation or organization) Identification No.) 47603 Halyard Drive, Plymouth, Michigan 48170-2429 (Address of principal executive offices) (Zip Code) (313)207-6200 (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 and (2) has been subject to such filing requirements for the past 90 days. Yes X No At October 31, 1995 there were 17,981,241 outstanding shares of the registrant's common stock, $1.00 par value each. Consolidated Balance Sheets (Unaudited) (In thousands) September 30, 1995 and December 31, 1994 Sept. 30 Dec. 31 ASSETS Current Assets Cash and cash equivalents $ 8,159 $ 2,321 Marketable securities, at cost 0 2,491 Accounts receivable 50,635 48,203 Inventories 11,514 11,221 Customer tooling in process 2,780 1,057 Prepaid expenses and other current assets 4,474 5,245 Total Current Assets 77,562 70,538 Property, Plant and Equipment Cost 246,551 228,880 Less Allowance 104,989 93,847 141,562 135,033 Other Assets 6,534 1,413 $225,658 $206,984 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Current installment of long-term debt $ 1,886 $ 2,125 Accounts payable 18,855 20,679 Compensation and amounts withheld 9,376 8,980 Taxes, other than income taxes 1,647 2,492 Other accrued expenses 5,574 4,611 Total Current Liabilities 37,338 38,887 Long-Term Debt, excluding current installment 62,414 50,375 Accrued Retirement Benefits 11,449 10,414 Deferred Income Taxes 9,553 9,269 Shareholders' Equity 104,904 98,039 $225,658 $206,984 Consolidated Statement of Operations (Unaudited) (dollars in thousands, except per share amounts) Periods Ended September 30, 1995 and 1994 Nine Months Three Months 1995 1994 1995 1994 Net sales $297,174 $259,893 $86,338 $85,877 Costs and expenses: Cost of products sold 266,256 232,239 79,713 78,449 Administrative and selling 8,485 7,094 3,220 2,296 274,741 239,333 82,933 80,745 Operating Earnings 22,433 20,560 3,405 5,132 Investment and other income, net 844 506 48 29 Interest expense (4,219) (3,225) (1,357) (1,078) Earnings Before Income Taxes 19,058 17,841 2,096 4,083 Income taxes 7,149 6,814 661 1,618 Net Earnings $ 11,909 $11,027 $ 1,435 $ 2,465 Net Earnings Per Share $.66 $.61 $.08 $.14 Cash dividends per share $.30 $.29 $.10 $.10 Average number of common equivalent shares 18,036,768 18,001,422 18,054,643 18,004,832 Consolidated Statements of Cash Flows (Unaudited) (in thousands) Nine Months Ended September 30, 1995 and 1994 1995 1994 OPERATING ACTIVITIES Net Earnings $11,909 $11,027 Depreciation 13,836 11,981 Provision for deferred income taxes 284 220 Amortization of restricted stock 247 251 (Gain) loss on disposition of assets (224) 82 Changes in operating assets and liabilities (9,073) (3,364) Cash Provided By Operating Activities 16,979 20,197 INVESTING ACTIVITIES Sale of marketable securities 2,491 0 Capital expenditures (20,651) (28,337) Proceeds from disposal of property and equipment 510 445 Cash Used In Investing Activities (17,650) (27,892) FINANCING ACTIVITIES Cash dividends paid (5,393) (5,137) Proceeds from long-term borrowings, net 11,800 12,000 Cash provided by stock transactions, net 42 39 Cash Provided By Financing Activities 6,449 6,902 Effect of foreign currency exchange rate changes 60 (225) Increase (decrease)In Cash and Cash Equivalents 5,838 (1,018) Cash and cash equivalents at beginning of period 2,321 15,493 Cash and Cash Equivalents At End of Period $ 8,159 $14,475 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 September 30, 1995 are not necessarily indicative of the results to be expected for the year ending December 31, 1995. ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Net sales increased 14.3% , or $37,281,000, from the first nine months of 1994. Net sales in the third quarter of 1995 remained approximately the same from the third quarter of 1994. The increased sales for the nine 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 6% from last year during the third quarter and decreased 2% during the nine 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 nine months of 1995, compared to the same period of 1994, remained approximately the same at 89.6% compared to 89.4%. Cost of products sold, as a percent of sales, compared to the third quarter of the prior year, increased from 91.4% to 92.3% due to higher metal market costs than last year and a shift in product mix. Administrative and selling costs as a percent of sales increased for the nine and three-month periods ended September 30, 1995 compared to the same periods of 1995 due to additional funds being expended for selling and research and development to help in supporting the current and future growth of the Company. Interest expense increased from 1994 as a result of increased long-term debt. 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 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. For the nine month period ending September 30, 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 borrowing, discussed above, exceeded these investments and dividends paid, resulting in a $5,838,000 increase in cash and cash equivalents for the nine month period ending September 30, 1995. With a quick ratio of 1.6 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 September 30, 1995. Exhibit (11) - Computation of Earnings Per Share Nine Months Ended Three Months Ended Sept. 30 Sept. 30 1995 1994 1995 1994 Primary Average number of common shares outstanding 17,968,132 17,912,350 17,979,962 17,926,775 Dilutive stock options outstand- ing 68,636 89,072 74,681 78,057 Average number of common and common equivalent shares 18,036,768 18,001,422 18,054,643 18,004,832 Net earnings appli- cable to common stock and common stock equivalents $11,909,000 $11,027,000 $1,435,000 $2,465,000 Primary earnings per share $.66 $.61 $.08 $.14 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 November 9, 1995 By: /s/Roy E. Parrott Roy E. Parrott President and Chief Executive Officer November 9, 1995 /s/James E. Garpow James E. Garpow Controller and Assistant Secretary EX-27 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 SEPTEMBER 30, 1995, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS 1,000 DEC-31-1995 SEP-30-1995 9-MOS 8,159 0 50,635 0 11,514 77,562 246,551 104,989 225,658 37,338 0 17,981 0 0 86,923 225,658 297,174 298,018 266,256 8,485 0 0 4,219 19,058 7,149 11,909 0 0 0 11,909 0.66 0.66
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