-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, HGfSincpInulKHcnItJe4hnSKi7iLY10zHZriHZRER4/nlpa674G1ZKe7/EkAevB WPRWuWY66Rv6/hYzmmwL/g== 0000009342-95-000013.txt : 19950516 0000009342-95-000013.hdr.sgml : 19950516 ACCESSION NUMBER: 0000009342-95-000013 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19940401 FILED AS OF DATE: 19950515 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: BALDOR ELECTRIC CO CENTRAL INDEX KEY: 0000009342 STANDARD INDUSTRIAL CLASSIFICATION: MOTORS & GENERATORS [3621] IRS NUMBER: 430168840 STATE OF INCORPORATION: MO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-07284 FILM NUMBER: 95538836 BUSINESS ADDRESS: STREET 1: 5711 R S BOREHAM JR ST CITY: FORT SMITH STATE: AR ZIP: 72901 BUSINESS PHONE: 5016464711 10-Q 1 BALDOR'S 1ST QTR 1995 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 ------------------------- FORM 10-Q ------------------------- [X] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 1, 1995 --------------- [ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period _____________________ Commission File Number 1-7284 ------ BALDOR ELECTRIC COMPANY ------------------------------------------------------ (Exact name of registrant as specified in its charter) Missouri 43-0168840 ------------------------------- ------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 5711 R.S. Boreham, Jr Street, Fort Smith, Arkansas 72901 --------------------------------------------------------- (Address of principal executive offices) (Zip Code) (501) 646-4711 ---------------------------------------------------- (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 and (2) has been subject to such filing requirements for the past 90 days. Yes__X__ No _____ At April 1, 1995, there were 18,360,040 shares of the registrant's common stock outstanding. PART I. FINANCIAL INFORMATION Item 1. Financial Statements - ----------------------------- BALDOR ELECTRIC COMPANY AND AFFILIATES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) THREE MONTHS ENDED April 1, April 2, 1995 1994 -------------------- (In thousands, except share data) Net sales $114,585 $ 97,476 Other income (net) 528 184 -------- -------- $115,113 $ 97,660 Cost and expenses: Cost of goods sold 81,027 69,571 Selling and administrative 19,444 17,319 Profit sharing 1,754 1,231 Interest 318 231 -------- -------- 102,543 88,352 -------- -------- Earnings before income taxes 12,570 9,308 Income taxes 4,899 3,630 -------- -------- Net earnings $ 7,671 $ 5,678 ======== ======== Net earnings per common share $0.40 $0.30 ===== ===== Dividends paid per common share $0.12 $0.10 ===== ====== Weighted average common shares outstanding 19,126,195 18,975,524 ========== ========== See notes to unaudited condensed consolidated financial statements. - 2 - BALDOR ELECTRIC COMPANY AND AFFILIATES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) APRIL 1, DECEMBER 31, 1995 1994 --------- ----------- ASSETS (In thousands) CURRENT ASSETS: Cash and cash equivalents $ 1,246 $ 8,848 Marketable securities 37,292 25,996 Accounts receivable, less allowances of $2,300,000 and $2,250,000, respectively 73,554 71,003 Inventories: Finished products 55,725 48,516 Work-in-process 11,938 11,933 Raw materials 32,213 29,408 ------- ------- 99,876 89,857 LIFO valuation adjustment (deduction) (26,509) (25,759) -------- -------- 73,367 64,098 Deferred tax assets 5,185 4,801 Other current assets 4,440 6,426 -------- -------- TOTAL CURRENT ASSETS 195,084 181,172 OTHER ASSETS 13,916 20,481 PROPERTY, PLANT AND EQUIPMENT 167,260 163,039 Allowances for depreciation and amortization (deduction) (84,421) (81,537) -------- -------- 82,839 81,502 -------- -------- $291,839 $283,155 ======== ======== See notes to unaudited condensed consolidated financial statements. - 3 - BALDOR ELECTRIC COMPANY AND AFFILIATES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) APRIL 1, DECEMBER 31, 1995 1994 --------- ----------- LIABILITIES AND SHAREHOLDERS' EQUITY (In thousands) CURRENT LIABILITIES: Accounts payable $ 20,516 $ 18,802 Employee compensation 7,057 5,776 Profit sharing 1,754 5,789 Anticipated warranty costs 3,800 3,700 Accrued insurance obligations 10,083 9,156 Other accrued expenses 14,421 15,697 Income taxes 7,297 2,777 Current maturities of long-term obligations 928 925 -------- -------- TOTAL CURRENT LIABILITIES 65,856 62,622 LONG-TERM OBLIGATIONS 26,282 26,303 DEFERRED INCOME TAXES 9,601 9,968 SHAREHOLDERS' EQUITY: Common stock 1,836 1,831 Additional capital 22,250 21,958 Retained earnings 165,493 160,024 Cumulative translation adjustments 521 449 -------- -------- TOTAL SHAREHOLDERS' EQUITY 190,100 184,262 -------- -------- $291,839 $283,155 ======== ======== See notes to unaudited condensed consolidated financial statements. - 4 - BALDOR ELECTRIC COMPANY AND AFFILIATES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) THREE MONTHS ENDED --------------------- April 1, April 2, 1995 1994 ---------- ---------- (In thousands) Operating activities: Net earnings $ 7,671 $ 5,678 Depreciation and amortization 3,388 3,292 Deferred income taxes (751) (595) Changes in operating assets and liabilities: Accounts receivable (2,601) (6,741) Inventories (9,269) (741) Other current assets 1,986 2,818 Accounts payable 1,714 3,518 Accrued expenses and other liabilities (3,003) (2,542) Income taxes 4,520 2,989 Other (net) 1,825 280 ------- -------- Net cash provided by operating activities 5,480 7,956 Investing activities: Additions to property, plant and equipment (4,574) (4,683) Sales of marketable securities available- for-sale 6,921 5,996 Purchase of marketable securities available- for-sale (18,217) (10,052) ------- ------- Net cash used in investing activities (15,870) (8,739) Financing activities: Reduction of long-term obligations (18) (16) Unexpended debt proceeds 4,711 (118) Dividends paid (2,202) (1,812) Stock option plans 297 1,277 ------- ------- Net cash provided by (used in) financing activities 2,788 (669) ------- ------- Net decrease in cash and cash eqivalents (7,602) (1,452) Beginning cash and cash equivalents 8,848 7,310 ------- ------- Ending cash and cash equivalents $ 1,246 $ 5,858 ======= ======= See notes to unaudited condensed consolidated financial statements. - 5 - BALDOR ELECTRIC COMPANY AND AFFILIATE NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS April 1, 1995 BASIS OF PRESENTATION: The unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements, and therefore should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 1994. In the opinion of management, all adjustments (consisting only of normal recurring items) considered necessary for a fair presentation have been included. The results of operations for the three months ended April 1, 1995, may not be indicative of the results that may be expected for the fiscal year ending December 30, 1995. MARKETABLE SECURITIES: The Company adopted Statement of Financial Accounting Standards No. 115 - "Accounting for Certain Investments in Debt and Equity Securities" in the first quarter of 1994. Adoption of this standard did not have a material impact on the Company's financial statements. Marketable securities are available for sale to support current operations or to take advantage of other investment opportunities. These securities are stated at estimated fair value with unrealized gains and losses, net of tax, included in retained earnings. Interest on securities classified as available-for- sale is included in other income. - 6 - PART I. FINANCIAL INFORMATION Item 2. Management's Discussion and Analysis of Financial Condition and - ------- --------------------------------------------------------------- Results of Operations --------------------- RESULTS OF OPERATIONS For the thirteenth quarter, sales and earnings set records. Sales for the first quarter of 1995 were $114,585,000, up 17.6% over sales of $97,476,000 for the first quarter of 1994. International sales (exports and sales by foreign affiliates), which comprise 12.5% of total first quarter sales, were up 21.1% over the same period last year. Sales growth was broad-based with good growth across many product lines, industries, and geographic regions. Both distributor and OEM business was strong. OEM sales were particularly strong, especially in Packaging Machinery, Machine Tools-Metal Cutting, Food Processing, and Hydraulic Pumps. Sales of drives (motors + controls) were also strong. For the first quarter of 1995, drives sales increased at over three times the rate of motor sales. Pricing was 5.6% above first quarter 1994 levels. First quarter 1995 net earnings of $7,671,000 were up 35.1% over first quarter 1994 net earnings of $5,678,000. For the quarter, margins have benefitted from higher sales volumes, higher selling prices, and the effects of productivity and cost improvements. The first quarter 1995 gross margin was 29.3% compared to 28.6% for the first quarter of 1994. Increases in raw material costs since the first quarter of 1994 have been offset by increases in selling prices since the first quarter of 1994. Manufacturing cost reductions continued to show good improvement due to increased volume levels, investments in equipment, improvements in manufacturing technology, and increases in productivity. First quarter 1995 selling and administrative expenses as a percent of net sales continued an improving trend at 17.0%, well below the 1994 first quarter of 17.8%. This decline was due mainly to the continued emphasis on productivity improvements. LIQUIDITY AND CAPITAL RESOURCES Through the first three months of 1995, the Company's financial position remained strong with cash and marketable securities at $38.5 million. Working capital increased to $129.2 million at April 1, 1995, from $118.6 million at December 31, 1994. The ratio of long-term borrowing to total capitalization (shareholders' equity and long-term borrowings) was 12.1% at April 1, 1995, compared to 12.5% at December 31, 1994. The current ratio at April 1, 1995 was 3.0 to 1.0 compared to 2.9 to 1.0 at December 31, 1994. - 7 - PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K - ------- -------------------------------- a. Exhibits - See the Exhibit Index. b. The registrant did not file any reports on Form 8-K during the most recently completed fiscal quarter. S I G N A T U R E S ------------------- 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. BALDOR ELECTRIC COMPANY (Registrant) May 15, 1995 By: /s/ Lloyd G. Davis - --------------------- ----------------------------- (Date) Lloyd G. Davis - Chief Financial Officer and Vice-President - Finance (on behalf of the Registrant and as principal financial officer) - 8 - EXHIBIT INDEX These Exhibits are numbered in accordance with the Exhibit Table of Item 601 of Regulation S-K. Exhibits Number - -------- -------------------------------------------------------- 2 Omitted - Inapplicable 3(i) Restated Articles of Incorporation of Baldor Electric Company, effective March 14, 1995, filed as Exhibit 3(i) to Form 10-K for year ended December 31, 1995, incorporated herein by reference. 3(ii) Bylaws of Baldor Electric Company (as amended) dated February 6, 1995, filed as Exhibit 3(ii) to Form 10-K for year ended December 31, 1995, incorporated herein by reference. 4 Omitted - Inapplicable 10 Omitted - Inapplicable 11 Computation of Earnings Per Common Share - filed herewith 12 Omitted - Inapplicable 15 Omitted - Inapplicable 18 Omitted - Inapplicable 19 Omitted - Inapplicable 22 Omitted - Inapplicable 23 Omitted - Inapplicable 24 Omitted - Inapplicable 27 Financial Data Schedules - filed herewith - 9 - EX-11 2 EXHIBIT 11 - EPS - BALDOR'S 1ST QTR 1995 FORM 10-Q EXHIBIT 11 BALDOR ELECTRIC COMPANY AND AFFILIATES COMPUTATION OF EARNINGS PER COMMON SHARE THREE MONTHS ENDED --------------------------- April 1, April 2, 1995 1994 (In thousands, except per share data) Primary Weighted average shares outstanding 18,335 18,072 Dilutive stock options based on the treasury stock method using the average market price 791 904 -------- -------- Total 19,126 18,976 ======== ======== Net Earnings $ 7,671 $ 5,678 ======== ======== Per Share Earnings $ 0.40 $ 0.30 ======== ======== Fully Diluted Weighted average shares outstanding 18,335 18,072 Dilutive stock options based on the treasury stock method using the year-end market price, if higher than average market price 799 866 -------- -------- Total 19,134 18,938 ======== ======== Net Earnings $ 7,671 $ 5,678 ======== ======== Per Share Earnings $ 0.40 $ 0.30 ======== ======== EX-27 3 EXHIBIT 27 - FDS - BALDOR'S 1ST QTR 1995 FORM 10-Q
5 0000009342 BALDOR ELECTRIC COMPANY 1000 3-MOS DEC-30-1995 JAN-1-1995 APR-1-1995 1246 37292 75854 2300 73367 195084 167260 84421 291839 65856 26282 1836 0 0 188264 291839 114585 115113 81027 102543 0 72202 318 12570 4899 7671 0 0 0 7671 0.40 0.40
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