-----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, RzcRN6h2fiafGxoHlXNx2a9s70WXIm+zBwWGgkLDGeiTC9PuGoQpj8QlupZDEf68 +2Pf+ndG7J9w6x7XQL2Tjw== 0000009342-95-000023.txt : 19951119 0000009342-95-000023.hdr.sgml : 19951119 ACCESSION NUMBER: 0000009342-95-000023 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951113 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: 95591010 BUSINESS ADDRESS: STREET 1: 5711 R S BOREHAM JR ST STREET 2: P O BOX 2400 CITY: FORT SMITH STATE: AR ZIP: 72902-2400 BUSINESS PHONE: 5016464711 10-Q 1 BALDOR'S 3RD 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 September 30, 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 (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 September 30, 1995, there were 27,708,446 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 SEPT 30 OCT 1 SEPT 30 OCT 1 1995 1994 1995 1994 ------------------- --------------------- (In thousands, except share data) Net sales $120,044 $105,432 $356,468 $307,720 Other income (net) 745 453 1,851 1,138 --------- -------- -------- -------- $120,789 $105,885 $358,319 $308,858 Cost and expenses: Cost of goods sold 84,854 74,787 252,022 219,024 Selling and administrative 20,261 18,098 60,290 53,440 Profit sharing 1,808 1,488 5,384 4,134 Interest 321 335 960 952 -------- -------- -------- -------- 107,244 94,708 318,656 277,550 -------- -------- -------- -------- Earnings before income taxes 13,545 11,177 39,663 31,308 Income taxes 5,269 4,359 15,455 12,210 -------- -------- -------- -------- Net earnings $ 8,276 $ 6,818 $ 24,208 $ 19,098 ======== ======== ======== ======== Net earnings per common share $0.29 $0.24 $0.84 $0.67 ===== ===== ===== ===== Dividends paid per common share $0.09 $0.07 $0.25 $0.20 ===== ===== ===== ===== Weighted average common shares outstanding 29,019,459 28,539,209 28,820,949 28,468,409 ========== ========== ========== ========== See notes to unaudited condensed consolidated financial statements. BALDOR ELECTRIC COMPANY AND AFFILIATES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) SEPTEMBER 30 DECEMBER 31 1995 1994 ------------- ------------ ASSETS (In thousands) CURRENT ASSETS: Cash and cash equivalents $ 1,931 $ 8,848 Marketable securities 34,839 25,996 Accounts receivable, less allowances of $2,800,000 and $2,250,000, respectively 80,131 71,003 Inventories: Finished products 56,787 48,516 Work-in-process 11,008 11,933 Raw materials 35,296 29,408 -------- -------- 103,091 89,857 LIFO valuation adjustment (deduction) (27,544) (25,759) -------- -------- 75,547 64,098 Deferred tax assets 6,841 4,801 Other current assets 5,758 6,426 -------- -------- TOTAL CURRENT ASSETS 205,047 181,172 OTHER ASSETS 13,272 20,481 PROPERTY, PLANT AND EQUIPMENT 177,807 163,039 Allowances for depreciation and amortization (deduction) (90,901) (81,537) -------- -------- 86,906 81,502 -------- -------- $305,225 $283,155 ======== ======== See notes to unaudited condensed consolidated financial statements. BALDOR ELECTRIC COMPANY AND AFFILIATES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) SEPTEMBER 30 DECEMBER 31 1995 1994 ------------ ------------ (In thousands) LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 21,319 $ 18,802 Employee compensation 6,182 5,776 Profit sharing 5,384 5,789 Anticipated warranty costs 4,100 3,700 Accrued insurance obligations 11,424 9,156 Other accrued expenses 13,201 15,697 Income taxes 4,947 2,777 Current maturities of long-term obligations 972 925 -------- -------- TOTAL CURRENT LIABILITIES 67,529 62,622 LONG-TERM OBLIGATIONS 25,377 26,303 DEFERRED INCOME TAXES 8,814 9,968 SHAREHOLDERS' EQUITY: Common stock 2,771 1,831 Additional capital 22,273 21,958 Retained earnings 177,623 160,024 Cumulative translation adjustments 838 449 -------- -------- TOTAL SHAREHOLDERS' EQUITY 203,505 184,262 -------- -------- $305,225 $283,155 ======== ======== See notes to unaudited condensed consolidated financial statements. BALDOR ELECTRIC COMPANY AND AFFILIATES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) NINE MONTHS ENDED --------------------- SEPT 30 OCT 1 1995 1994 --------- --------- (In thousands) Operating activities: Net earnings $24,208 $19,098 Depreciation and amortization 11,153 9,720 Deferred income taxes (3,384) (2,900) Changes in operating assets and liabilities: Accounts receivable (9,678) (13,857) Inventories (11,449) (3,770) Other current assets 668 2,469 Accounts payable 2,517 4,845 Accrued expenses and other liabilities 173 3,830 Income taxes 2,170 1,713 Other (net) 2,432 2,035 ------- -------- Net cash provided by operating activities 18,810 23,183 Investing activities: Additions to property, plant and equipment (16,105) (12,010) Sales of marketable securities available- for-sale 36,639 17,984 Purchase of marketable securities available- for-sale (44,996) (29,329) ------- ------- Net cash used in investing activities (24,462) (23,355) Financing activities: Additional long-term borrowings 6,000 Reduction of long-term obligations (879) (1,632) Unexpended debt proceeds 5,264 (5,041) Dividends paid (6,905) (5,452) Stock option plans 1,255 2,133 ------- ------- Net cash used in financing activities (1,265) (3,992) ------- ------- Net decrease in cash and cash equivalents (6,917) (4,164) Beginning cash and cash equivalents 8,848 7,310 ------- ------- Ending cash and cash equivalents $ 1,931 $ 3,146 ======= ======= See notes to unaudited condensed consolidated financial statements. BALDOR ELECTRIC COMPANY AND AFFILIATES NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS September 30, 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 nine months ended September 30, 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 as an adjustment to shareholders' equity. 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 fifteenth consecutive quarter, sales and earnings set records for both the quarter and the year-to-date amounts. Third quarter sales of $120,044,000 were up 13.9% over third quarter 1994 sales of $105,432,000. Year-to-date 1995 sales of $356,468,000 were up 15.8% over year-to-date 1994 sales of $307,720,000. International sales (exports and sales by foreign affiliates), which comprise 13.2% of total year-to-date sales, were also strong, up 21.2% in the third quarter and up 19.0% year-to-date over the same periods in 1994. Sales growth continued broad-based with increases across numerous product lines, industries, and geographic regions. Both distributor and OEM business remained solid with distributor sales being somewhat stronger than OEM sales in the third quarter. During the third quarter, the distributor/OEM split returned to about 50/50. Sales of drives (motors + controls) remained strong with year-to-date sales of these products increasing at over four times the rate of motor sales. A 3.3% price increase was announced in the third quarter with an effective date of October 2, 1995. The previous price increase of 4.5% was effective in December of 1994. Third quarter 1995 earnings of $8,276,000 were up 21.4% over third quarter 1994 and year-to-date 1995 earnings of $24,208,000 were up 26.8% over the first nine months of 1994. The Company's gross margin for the third quarter of 1995 was 29.3% compared to 29.3% for the first and second quarter of 1995 and 29.1% for the third quarter of 1994. Year-to-date 1995 gross margin was 29.3% compared to 28.8% for the same period of 1994. Pre-tax margins were 11.3% for the third quarter and 11.1% for the first nine months of 1995. For both the quarter and year-to-date, margins have benefitted from higher sales volumes and the effects of productivity and cost improvements. Third quarter 1995 selling and administrative expenses at 16.9% of net sales were flat with second quarter and down from 17.2% of net sales in the third quarter of 1994. LIQUIDITY AND CAPITAL RESOURCES Through the first nine months of 1995, the Company's financial position remains strong with cash and marketable securities over $36.8 million. Working capital increased to $137.5 million at September 30, 1995, from $118.6 million at December 31, 1994. The ratio of long-term borrowing to total capitalization (shareholders' equity and long-term borrowings) decreased to 11.1% at September 30, 1995, from 12.5% at December 31, 1994. The current ratio at September 30, 1995 remains strong at 3.0 times. PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K - ------- -------------------------------- a. Exhibits - See 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 13, 1995 By: /s/ Lloyd G. Davis - -------------------- ------------------- 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 3 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 - EPS - BALDOR'S 3RD QTR 1995 FORM 10-Q EXHIBIT 11 BALDOR ELECTRIC COMPANY AND AFFILIATES COMPUTATION OF EARNINGS PER COMMON SHARE THREE MONTHS NINE MONTHS ENDED ENDED ----------------- ---------------- Sept 30 Oct 1 Sept 30 Oct 1 1995 1994 1995 1994 (In thousands, except per share data) Primary Weighted average shares outstanding 27,678 27,324 27,587 27,224 Dilutive stock options based on the treasury stock method using the average market price 1,341 1,215 1,234 1,244 ------- ------ ------- ------ Total 29,019 28,539 28,821 28,468 ======== ======= ======= ======= Net Earnings $ 8,276 $ 6,818 $24,208 $19,098 ======== ======= ======= ======= Per Share Earnings $ 0.29 $ 0.24 $ 0.84 $ 0.67 ======== ======== ======= ======= Fully Diluted Weighted average shares outstanding 27,678 27,324 27,587 27,224 Dilutive stock options based on the treasury stock method using the year-end market price, if higher than average market price 1,426 1,257 1,426 1,257 -------- ------- ------- ------- Total 29,104 28,581 29,013 28,481 ======== ======= ======= ======= Net Earnings $ 8,276 $ 6,818 $24,208 $19,098 ======== ======= ======= ======= Per Share Earnings $ 0.28 $ 0.24 $ 0.83 $ 0.67 ======== ======== ======= ======= Note: Share and per share data reflect the third quarter three-for-two stock split. EX-27 3 EXHIBIT 27 - FDS - BALDOR'S 3RD QTR 1995 FORM 10-Q
5 0000009342 BALDOR ELECTRIC COMPANY 1000 9-MOS DEC-30-1995 SEP-30-1995 1931 3489 82931 2800 75574 12599 177807 90901 305225 67529 25377 2771 0 0 200734 305225 356468 358319 252022 318656 0 123214 960 39663 15455 24208 0 0 0 24208 .84 .83
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