-----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, HuIwsKEcHqQTq9IWuaOLTbtxf32brnC3bbjrweIdnxzAhhZo1dzvAYqFKa8C9hb5 reTIUxORCIbrX5fTfrB2PQ== 0000009342-94-000011.txt : 19940518 0000009342-94-000011.hdr.sgml : 19940518 ACCESSION NUMBER: 0000009342-94-000011 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940402 FILED AS OF DATE: 19940517 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BALDOR ELECTRIC CO CENTRAL INDEX KEY: 0000009342 STANDARD INDUSTRIAL CLASSIFICATION: 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: 94529009 BUSINESS ADDRESS: STREET 1: 5711 R S BOREHAM JR ST CITY: FORT SMITH STATE: AR ZIP: 72901 BUSINESS PHONE: 5016464711 10-Q 1 BALDOR ELECTRIC CO.'S 1ST QTR 1994 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 2, 1994 ------------- [ ] 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 St, Fort Smith, Arkansas 72902 ----------------------------------------------------- (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 the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days. Yes X No _____ At April 30, 1994, there were 18,158,433 shares of the registrant's common stock outstanding. Part I. FINANCIAL INFORMATION Item 1. Financial Statements - ----------------------------- BALDOR ELECTRIC COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) THREE MONTHS ENDED ------------------- APRIL 2, APRIL 3, 1994 1993 -------------------------------- (In thousands, except share data) Net sales $ 97,476 $ 86,547 Other income - net 184 156 -------- -------- 97,660 86,703 Cost and expenses: Cost of goods sold 69,571 61,857 Selling and administrative 17,319 16,016 Profit sharing 1,231 1,045 Interest 231 256 -------- -------- 88,352 79,174 -------- -------- Earnings before income taxes 9,308 7,529 Income taxes 3,630 2,936 -------- -------- Net earnings $ 5,678 $ 4,593 ======== ======== Net earnings per common share $0.30 $0.25 ===== ===== Dividends per common share $0.10 $0.08 ===== ===== Weighted average common shares outstanding 18,975,524 18,553,553 See notes to unaudited consolidated financial statements. BALDOR ELECTRIC COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) APRIL 2, JANUARY 1, 1994 1994 --------- --------- ASSETS (In thousands) CURRENT ASSETS: Cash and cash equivalents $ 5,858 $ 7,310 Marketable securities 26,970 22,914 Accounts receivable, less allowances of $2,000 and $1,800 66,107 59,566 Inventories: Finished products 45,191 44,544 Work-in-process 10,180 9,351 Raw materials 24,093 24,448 ------- ------- 79,464 78,343 LIFO valuation adjustment (deduction) (25,104) (24,724) ------- ------- 54,360 53,619 Deferred income taxes 2,427 2,219 Other current assets 3,556 6,374 ------- ------- TOTAL CURRENT ASSETS 159,278 152,002 OTHER ASSETS 13,725 13,552 PROPERTY, PLANT AND EQUIPMENT 150,528 146,220 Allowances for depreciation and amortization (deduction) (76,625) (73,824) ------- ------- 73,903 72,396 ------- ------- $246,906 $237,950 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY (In thousands) CURRENT LIABILITIES: Accounts payable $ 16,208 $ 12,690 Accrued employee compensation and other liabilities 25,558 28,100 Income taxes 5,110 2,121 Current maturities of long-term obligations 495 490 -------- -------- TOTAL CURRENT LIABILITIES 47,371 43,401 LONG-TERM OBLIGATIONS 22,453 22,474 DEFERRED INCOME TAXES 11,149 11,536 SHAREHOLDERS' EQUITY: Common stock 1,813 1,797 Additional capital 19,110 17,848 Retained earnings 145,594 141,729 Cumulative translation adjustments (584) (835) -------- -------- 165,933 160,539 -------- -------- $246,906 $237,950 ======== ======== See notes to unaudited consolidated financial statements BALDOR ELECTRIC COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) THREE MONTHS ENDED -------------------------- APRIL 2, APRIL 3, 1994 1993 -------- -------- (In thousands) Operating activities: Net earnings $ 5,678 $ 4,593 Depreciation and amortization 3,292 3,050 Deferred income taxes (595) (729) Changes in operating assets and liabilities: Accounts receivable (6,741) (5,313) Inventories (741) (2,771) Other current assets 2,818 2,118 Accounts payable 3,518 4,923 Accrued expenses and other liabilities (2,542) (849) Income taxes 2,989 3,294 Other - net 280 (962) -------- -------- Net cash provided by operating activities 7,956 7,354 Investing activities: Additions to property, plant and equipment (4,683) (2,995) Sales of marketable securities, available-for-sale 5,996 Purchases of marketable securities, available-for-sale (10,052) (3,549) -------- -------- Net cash used in investing activities (8,739) (6,544) Financing activities: Reduction of long-term obligations (16) (14) Unexpended debt proceeds (118) 169 Dividends paid (1,812) (1,409) Stock option plans 1,277 147 -------- -------- Net cash used in financing activities (669) (1,107) -------- -------- Net decrease in cash and cash equivalents (1,452) (297) Beginning cash and cash equivalents 7,310 5,921 -------- -------- Ending cash and cash equivalents $ 5,858 $ 5,624 ======== ======== See notes to unaudited consolidated financial statements. BALDOR ELECTRIC COMPANY AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS April 2, 1994 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 January 1, 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 2, 1994, may not be indicative of the results that may be expected for the fiscal year ending December 31, 1994. INCOME TAXES: Deferred income taxes are provided on temporary differences between net earnings reported for financial and tax purposes. During the first quarter of 1993, the Company adopted Statement of Financial Accounting Standards No. 109 - "Accounting for Income Taxes". Adoption of this standard did not have a material impact on the Company's financial statements. MARKETABLE SECURITIES: In May 1993, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 115 - "Accounting for Certain Investments in Debt and Equity Securities" which the Company adopted in the first quarter of 1994. Adoption of this standard did not have a material impact on the Company's financial statements. Management determines the appropriate classification of debt securities at the time of purchase and reevaluates such designation as of each balance sheet date. Currently, all of the Company's marketable securities are classified as available-for-sale. The cost approximates the fair market value and unrealized gains and losses, net of tax, are immaterial. Interest income from securities classified as available- for-sale is included in other income. Item 2. Management's Discussion and Analysis of Financial Condition and - ------ --------------------------------------------------------------- Results of Operations ---------------------- RESULTS OF OPERATIONS First quarter 1994 sales were an all-time record at $97.5 million, up 12.6% over last year's first quarter results. This increase in sales was broad-based across many industries and regions. For the first quarter of 1994, average selling prices were about 1.5% above year-end 1993 levels. Sales to both distributors and OEM's experienced good increases with sales to OEM's being particularly strong. Sales of new products were strong, particularly Super-E premium efficiency motors. First quarter 1994 sales of drives (defined as motors and controls) were also strong, increasing 19.9% over first quarter 1993 drive sales. In US dollar terms, first quarter 1994 international sales (exports and foreign affiliates) were up 10.0% over the first quarter 1993 levels and currently represent 12.1% of total sales. First quarter 1994 net earnings were also an all-time record at $5.7 million, up 23.6% from the corresponding period of the year before. The Company's pre-tax margin improved to 9.5% for first quarter 1994 compared to 8.7% for first quarter 1993. The Company's gross margin for first quarter 1994 was 28.6% compared to 28.5% during first quarter 1993. The first quarter 1994 gross margin benefitted from increased production volumes and continued improvements in the manufacturing processes. First quarter 1994 selling and administrative expenses decreased to 17.8% of sales from 18.5% of sales in the first quarter of 1993 due mainly to improvements in administrative expenses. LIQUIDITY AND CAPITAL RESOURCES Baldor's financial position remains strong with cash and marketable securities increasing $2.6 million from year-end to $32.8 million. This increase was primarily due to increased sales levels while maintaining year-end accounts receivable collection rates. Working capital increased to $111.9 million from $108.6 million at January 1, 1994. The ratio of long-term borrowings to total capitalization (shareholders' equity and long-term borrowings) was 11.9% at April 2, 1994, compared to 12.3% at January 1, 1994. 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 Form 8-Ks 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 May 17, 1994 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) EXHIBIT INDEX These Exhibits are numbered in accordance with the Exhibit Table of Item 601 of Regulation S-K. Exhibits Number Description - -------- ----------- 2 Omitted - Inapplicable 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 Not required EX-11 2 BALDOR ELECTRIC CO.'S 1ST QTR 1994 10-Q EXHIBIT 11 EXHIBIT 11 BALDOR ELECTRIC COMPANY AND SUBSIDIARIES COMPUTATION OF EARNINGS PER COMMON SHARE THREE MONTHS ENDED --------------------------- April 2, April 3, 1994 1993 (In thousands, except per share data) Primary Weighted average shares outstanding 18,072 17,799 Dilutive stock options based on the treasury stock method using the average market price 904 755 ------- ------- Total 18,976 18,554 ======= ======= Net Earnings $ 5,678 $ 4,593 ======= ======= Per Share Earnings $ 0.30 $ 0.25 ======= ======= Fully Diluted Weighted average shares outstanding 18,072 17,799 Dilutive stock options based on the treasury stock method using the year-end market price, if higher than average market price 866 806 ------- ------- Total 18,938 18,605 Net Earnings $ 5,678 $ 4,593 ======= ======= Per Share Earnings $ 0.30 $ 0.25 ======= ======= -----END PRIVACY-ENHANCED MESSAGE-----