-----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, C8vTafQMGW9jTzxq1hFr8/mwggNrFDVLEOVArlMfcFS2/cAbRc5pq82pe6Wvf7gJ /DodJnEayvlNpsUEVs+1gg== 0000009342-94-000022.txt : 19941116 0000009342-94-000022.hdr.sgml : 19941116 ACCESSION NUMBER: 0000009342-94-000022 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19941001 FILED AS OF DATE: 19941115 SROS: NYSE 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: 94560354 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 3RD QTR 1994 10Q 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 October 1, 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 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 October 1, 1994, there were 18,226,997 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 NINE MONTHS ENDED October 1, October 2, October 1, October 2, 1994 1993 1994 1993 ---------------------- ---------------------- (In thousands, except share data) Net sales $105,432 $ 90,703 $307,720 $267,923 Other income (net) 453 340 1,138 1,025 -------- -------- -------- -------- 105,885 91,043 308,858 268,948 Cost and expenses: Cost of goods sold 74,787 65,111 219,024 191,855 Selling and administrative 18,098 16,064 53,440 48,530 Profit sharing 1,488 1,147 4,134 3,355 Interest 335 272 952 801 -------- -------- -------- -------- 94,708 82,594 277,550 244,541 -------- -------- -------- -------- Earnings before income taxes 11,177 8,449 31,308 24,407 Income taxes 4,359 3,595 12,210 9,815 -------- -------- -------- -------- Net earnings $ 6,818 $ 4,854 $ 19,098 $ 14,592 ======== ======== ======== ======== Net earnings per common share $0.36 $0.26 $1.01 $0.78 ===== ===== ===== ===== Dividends paid per common share $0.10 $0.083 $0.30 $0.246 ===== ====== ===== ====== Weighted average common shares outstanding 19,026,138 18,761,947 18,978,939 18,645,305 ========== ========== ========== ========== See notes to unaudited condensed consolidated financial statements. BALDOR ELECTRIC COMPANY AND AFFILIATES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) October 1, JANUARY 1, 1994 1994 --------- ----------- ASSETS (In thousands) CURRENT ASSETS: Cash and cash equivalents $ 3,146 $ 7,310 Marketable securities 34,259 22,914 Accounts receivable, less allowances of $2,225,000 and $1,800,000, respectively 72,998 59,566 Inventories: Finished products 45,410 44,544 Work in process 11,255 9,351 Raw materials 26,494 24,448 ------- ------- 83,159 78,343 LIFO valuation adjustment (deduction) (25,770) (24,724) -------- -------- 57,389 53,619 Deferred tax assets 2,733 2,219 Other current assets 3,905 6,374 -------- -------- TOTAL CURRENT ASSETS 174,430 152,002 OTHER ASSETS 17,815 13,552 PROPERTY, PLANT AND EQUIPMENT 156,143 146,220 Allowances for depreciation and amortization (deduction) (81,279) (73,824) -------- -------- 74,864 72,396 -------- -------- $267,109 $237,950 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 17,535 $ 12,690 Accrued employee compensation and other liabilities 31,930 28,100 Income taxes 3,834 2,121 Current maturities of long-term obligations 920 490 -------- -------- TOTAL CURRENT LIABILITIES 54,219 43,401 LONG-TERM OBLIGATIONS 26,412 22,474 DEFERRED INCOME TAXES 9,150 11,536 SHAREHOLDERS' EQUITY: Common stock 1,823 1,797 Additional capital 19,955 17,848 Retained earnings 155,375 141,729 Cumulative translation adjustments 175 (835) -------- -------- TOTAL SHAREHOLDERS' EQUITY 177,328 160,539 -------- -------- $267,109 $237,950 ======== ======== See notes to unaudited condensed consolidated financial statements. BALDOR ELECTRIC COMPANY AND AFFILIATES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) NINE MONTHS ENDED --------------------- October 1, October 2, 1994 1993 ---------- --------- (In thousands) Operating activities: Net earnings $19,098 $14,592 Depreciation and amortization 9,720 9,055 Deferred income taxes (2,900) (1,136) Changes in operating assets and liabilities: Accounts receivable (13,857) (11,126) Inventories (3,770) (910) Other current assets 2,469 1,226 Accounts payable 4,845 3,511 Accrued expenses and other liabilities 3,830 4,362 Income taxes 1,713 1,571 Other (net) 2,035 (1,396) ------- ------- Net cash provided by operating activities 23,183 19,749 Investing activities: Additions to property, plant and equipment (12,010) (9,989) Sales of marketable securities available- for sale 17,984 Purchase of marketable securities available- (29,329) (5,919) for-sale ------- ------- Net cash used in investing activities (23,355) (15,908) Financing activities: Additional long-term borrowings 6,000 Reduction of long-term obligations (1,632) (813) Unexpended debt proceeds (5,041) 589 Dividends paid (5,452) (4,388) Stock option plans 2,133 729 ------- ------- Net cash used in financing activities (3,992) (3,883) ------- ------- Net decrease in cash and cash eqivalents (4,164) (42) Beginning cash and cash equivalents 7,310 5,921 ------- ------- Ending cash and cash equivalents $ 3,146 $ 5,879 ======= ======= See notes to unaudited condensed consolidated financial statements. BALDOR ELECTRIC COMPANY AND AFFILIATE NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS October 1, 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 nine months ended October 1, 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 re-evaluates 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 on securities classified as available- for-sale is included in other income. PART I. FINANCIAL INFORMATION Item 2. Management's Discussion and Analysis of Financial Condition and - ------- --------------------------------------------------------------- Results of Operations --------------------- RESULTS OF OPERATIONS For the eleventh straight quarter, sales and earnings set records for both the quarter and the year-to-date amounts. Sales for the first nine months of 1994 were $307,720,000, up 14.9% over sales of $267,923,000 for the first nine months of 1993. Third quarter 1994 sales of $105,432,000 were up 16.2% over the third quarter 1993 sales of $90,703,000. International sales (exports and sales by foreign affiliates), which comprise 12.9% of total year-to-date sales, also increased for the third quarter, up 11.4% over the third quarter of 1993. International sales for the first nine months of 1994 were up 14.4% over the same period last year. Sales growth remained broad-based across both geographic regions and industries. Pricing continued to hold at approximately 2.5% above year-end 1993 levels. Sales of drives (motors+controls) remained strong. Year-to-date, drives sales have increased at about twice the rate of motor sales. Third quarter 1994 net earnings of $6,818,000 were up 40.5% over third quarter 1993 net earnings of $4,854,000. Net earnings for the nine-month period were $19,098,000 for 1994 compared to $14,592,000 for 1993, a 30.9% increase. The pre-tax margins for 1994 exceeded 10.0% for both the quarter and the year-to-date. Pre-tax margins have not been at 10.0% or above since 1985. For both the quarter and the year-to-date, margins have benefitted from higher sales volumes, slightly higher selling prices, and the effects of productivity and cost improvements. The third quarter 1994 gross margin was 29.1% compared to 28.2% for the third quarter of 1993. Material costs were up slightly over 1% from year-end with increases in steel, aluminum, and grey iron castings. Manufacturing cost reductions continued to show good improvement due to investments in lamination and winding equipment, improvements in manufacturing technology, increases in productivity, and the results of increased training and education. Third quarter 1994 selling and administrative expenses as a percent of sales were 17.2%, below the 1993 third quarter of 17.7%. Year-to-date selling and administrative expenses were 17.4% of sales compared to 18.1% of sales for 1993. The decrease was primarily in administrative expenses. LIQUIDITY AND CAPITAL RESOURCES Through the first nine months of 1994, the Company's financial position remained strong with cash and marketable securities over $37.4 million. Working capital increased to $120.2 million at October 1, 1994, from $108.6 million at January 1, 1994. The ratio of long-term borrowing to total capitalization (shareholders' equity and long-term borrowings) was 13.0% at October 1, 1994, compared to 12.3% at January 1, 1994. The October 1, 1994 ratio includes the $6,000,000 in Industrial Development Bonds, issued in the second quarter, to finance the new plant in Ozark, Arkansas. The current ratio at October 1, 1994 was 3.2 to 1.0 compared to 3.5 to 1.0 at January 1, 1994. At their meeting on November 7, 1994, the Board of Directors declared a quarterly cash dividend of $0.12 per share payable on January 3, 1995 to shareholders of record on December 9, 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 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) November 15, 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 - -------- -------------------------------------------------------- 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 Financial Data Schedules - filed herewith EX-11 2 EXHIBIT 11 BALDOR ELECTRIC COMPANY AND AFFILIATES COMPUTATION OF EARNINGS PER COMMON SHARE THREE MONTHS NINE MONTHS ENDED ENDED ------------------ ----------------- Oct 1, Oct 2, Oct 1, Oct 2, 1994 1993 1994 1993 (In thousands, except per share data) Primary Weighted average shares outstanding 18,216 17,904 18,149 17,840 Dilutive stock options based on the treasury stock method using the average market price 810 858 830 805 ------- ------- ------- ------ Total 19,026 18,762 18,979 18,645 ======= ======= ======= ====== Net Earnings $ 6,818 $ 4,854 $ 19,098 $ 14,592 ======== ======== ======== ======== Per Share Earnings $ 0.36 $ 0.26 $ 1.01 $ 0.78 ======== ======== ======== ======== Fully Diluted Weighted average shares outstanding 18,216 17,904 18,149 17,840 Dilutive stock options based on the treasury stock method using the year-end market price, if higher than average market price 838 882 838 881 -------- -------- -------- -------- Total 19,054 18,786 18,987 18,721 ======== ======== ======== ======== Net Earnings $ 6,818 $ 4,854 $ 19,098 $ 14,592 ======== ======== ======== ======== Per Share Earnings $ 0.36 $ 0.26 $ 1.01 $ 0.78 ======== ======== ======== ======== EX-27 3
5 These unaudited numbers should be reviewed in conjunction with the Company's Annual Report for the year ended January 1, 1994. 0000009342 BALDOR ELECTRIC COMPANY 1000 9-MOS DEC-31-1994 JUL-03-1994 OCT-01-1994 3,146 34,259 75,223 2,225 57,389 174,430 156,143 81,279 267,109 54,219 26,412 1,823 0 0 175,505 267,109 307,720 308,858 219,024 277,550 0 639 952 31,308 12,210 19,098 0 0 0 19,098 1.01 1.01
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