-----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, C35Er0ZZhGJS8PB9g1dt54T3/c7nP5udUtIhcgtpc0qySfK/+4rJAydB9JkIxIRT WTu7mxc1VtByBF4DohjyjQ== 0000914760-95-000129.txt : 19951119 0000914760-95-000129.hdr.sgml : 19951119 ACCESSION NUMBER: 0000914760-95-000129 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951114 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: THOMAS INDUSTRIES INC CENTRAL INDEX KEY: 0000097886 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC LIGHTING & WIRING EQUIPMENT [3640] IRS NUMBER: 610505332 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-05426 FILM NUMBER: 95592318 BUSINESS ADDRESS: STREET 1: P O BOX 35120 CITY: LOUISVILLE STATE: KY ZIP: 40232 BUSINESS PHONE: 5028934600 MAIL ADDRESS: STREET 1: P O BOX 35120 CITY: LOUISVILLE STATE: KY ZIP: 40232 10-Q 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) [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 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 12 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from___________________to______________________ Commission File Number 1-5426. THOMAS INDUSTRIES INC. (Exact name of registrant as specified in its charter) Delaware 61-0505332 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 4360 Brownsboro Road, Louisville, Kentucky 40207 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: 502/893-4600 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 twelve months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ] The number of shares outstanding of issuer's Common Stock, $1 par value, as of November 6, 1995, was 10,095,394 shares. PART I. FINANCIAL INFORMATION Item 1. Financial Statements THOMAS INDUSTRIES INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Dollars in Thousands Except Amounts Per Share) (Unaudited)
Three Months Ended Nine Months Ended September 30 September 30 1995 1994 1995 1994 Net sales $128,750 $119,035 $373,726 $345,714 Cost of products sold 91,842 85,098 269,091 249,312 Gross profit 36,908 33,937 104,635 96,402 Other (income) expenses: Selling, general, and administrative expenses 27,415 26,435 81,449 78,311 Interest expense 2,023 2,291 6,213 7,069 Other (133) (106) 112 (4,029) Income before income taxes 7,603 5,317 16,861 15,051 Income tax provision 2,901 2,497 6,695 6,174 Net income $ 4,702 $ 2,820 $ 10,166 $ 8,877 Per Common Share amounts: Net income per share $.46 $.28 $1.00 $.88 Dividends declared per share $.10 $.10 $.30 $.30 Weighted average number of common shares and common share equivalents 10,226,356 10,065,613 10,199,059 10,057,120 See notes to condensed consolidated financial statements.
THOMAS INDUSTRIES INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in Thousands)
(Unaudited) September 30 December 31 ASSETS 1995 1994* Current assets Cash and cash equivalents $ 3,895 $ 5,050 Accounts receivable, less allowance (1995--$2,218; 1994--$1,773) 72,647 61,075 Inventories: Finished products 32,040 31,417 Raw materials 26,366 29,970 Work in process 11,511 11,515 69,917 72,902 Assets held for disposition 1,134 2,157 Deferred income taxes 6,066 5,874 Other current assets 7,427 8,297 Total current assets 161,086 155,355 Property, plant and equipment 150,258 142,060 Less accumulated depreciation and amortization 76,134 66,098 74,124 75,962 Intangible assets--less accumulated amortization 62,041 62,532 Other assets 12,104 11,222 Total assets $309,355 $305,071 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Notes payable $ 7,788 $ 8,252 Accounts payable 23,914 25,892 Other current liabilities 40,992 34,821 Current portion of long-term debt 9,023 8,832 Total current liabilities 81,717 77,797 Deferred income taxes 7,844 7,684 Long-term debt (less current portion) 71,161 79,693 Minimum pension liability 1,759 1,759 Other long-term liabilities 4,219 4,372 Shareholders' equity Preferred Stock, $1 par value, 3,000,000 shares authorized--none issued Common Stock, $1 par value Shares authorized: 60,000,000 Shares issued: 1995--11,455,956; 1994--11,447,873 11,456 11,448 Capital surplus 117,631 117,557 Retained earnings 38,404 31,264 Minimum pension liability adjustment (1,045) (1,045) Equity adjustment from translation (811) (2,478) Less cost of treasury shares (1995 and 1994--1,366,695) (22,980) (22,980) 142,655 133,766 Total liabilities and shareholders' equity $309,355 $305,071 *Derived from the audited December 31, 1994, balance sheet. See notes to condensed consolidated financial statements.
THOMAS INDUSTRIES INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Dollars in Thousands)
Nine Months Ended September 30 1995 1994 Cash flows from operating activities: Net income $10,166 $8,877 Reconciliation of net income to net cash provided by (used in) operating activities: Depreciation and amortization 11,839 11,879 Deferred income taxes (273) 330 Provision for losses on accounts receivable 593 797 (Gain) loss on asset disposal, net 103 (4,044) Changes in operating assets and liabilities net of effect of divestitures: Accounts receivable (11,554) (11,418) Inventories 2,483 (3,029) Other current assets 2,485 2,250 Accounts payable (2,161) 6,125 Accrued expenses and other liabilities 5,285 1,414 Other 304 (109) Net cash provided by operating activities 19,270 13,072 Cash flows from investing activities: Purchases of property, plant, and equipment (7,942) (11,723) Proceeds from sale of property, plant, and equipment, and other assets 104 12,708 Net cash provided by (used in) investing activities (7,838) 985 Cash flows from financing activities: Payments of short-term debt, net (1,168) (7,326) Payments of long-term debt (8,534) (888) Dividends paid (3,024) (3,015) Other 139 145 Net cash (used in) financing activities (12,587) (11,084) Increase (decrease) in cash and cash equivalents (1,155) 2,973 Cash and cash equivalents at beginning of year 5,050 2,364 Cash and cash equivalents at end of period $ 3,895 $ 5,337 See notes to condensed consolidated financial statements.
THOMAS INDUSTRIES INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Note A -- Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial reporting and with the instructions to Form 10-Q and Article 10-01 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. The results of operations for the nine-month period ended September 30, 1995, are not necessarily indicative of the results that may be expected for the year ending December 31, 1995. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. For further information, refer to the consolidated financial statements and footnotes included in the Company's Annual Report on Form 10-K for the year ended December 31, 1994. Note B -- Contingencies In the normal course of business, the Company and its subsidiaries are parties to litigation; and when costs can be reasonably estimated, the Company records appropriate liabilities for such matters. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Net sales during the third quarter ended September 30, 1995, increased 8% over the third quarter 1994 to $128.8 million. For the nine months ended September 30, 1995, net sales were 8% higher than the first nine months of 1994. Lighting Segment sales were up 10% for the third quarter over 1994, due to improvements in the Commercial & Industrial Division. Compressor and Vacuum Pump Segment sales were up 5% for the third quarter over 1994, due primarily to new applications for our products in Original Equipment Manufacturer (OEM) markets. Net income for the 1995 third quarter and first nine months of $4.7 million and $10.2 million, respectively, was higher than the $2.8 million and $8.9 million for the comparable periods in 1994; however, included in the 1994 results was a gain of $3.0 million from the sale of non-core businesses during the second quarter and a $.7 million gain due to LIFO inventory layer reductions. Exclusive of the $3.0 million gain, net income in 1995 improved 67% and 73% over the third quarter and first nine months of 1994, respectively, due primarily to the improved performance of the Lighting Segment. Operating income from the Compressor and Vacuum Pump Segment for the 1995 third quarter and first nine months was slightly below the record levels established in 1994. Cost of products sold as a percent of sales was 71.3% and 72.0% for the 1995 third quarter and nine months to date, respectively, versus 71.5% and 72.1% for the comparable 1994 periods. Gross margins in the Lighting Segment in 1995 have improved due to increased efficiencies and implementation of cost containment programs. Compressor and Vacuum Pump Segment margins are slightly below prior year levels due to material cost increases, competitive margin pressures, and increased fixed cost associated with a plant expansion. Selling, general, and administrative costs as a percent of sales of 21.3% and 21.8% in the third quarter and first nine months of 1995, respectively, were slightly lower than the 22.2% and 22.7% figures for the comparable 1994 periods. The ability to absorb these relatively fixed costs over a higher sales base accounts for most of the improvement. Interest expense for the third quarter of 1995 was 11.7% below 1994, with the first nine months of 1995 down 12.1% compared to 1994 due to lower short-term interest rates in Europe and a decrease in long- term debt. Working capital of $79.4 million at September 30, 1995, was 2% greater than the $77.6 million at December 31, 1994. Accounts receivable at September 30, 1995, have increased by 19% since December 31, 1994, due to seasonal factors and the additional sales volume; however, the number of days sales in receivables at September 30, 1995, compared to December 31, 1994, has improved from 53.2 days to 49.8 days. Inventory at September 30, 1995, has decreased from December 31, 1994, and September 30, 1994, levels due to improved efficiencies and utilization. Inventory turnover at September 30, 1995, of 4.12 times per year has improved over the prior December and September amounts of 3.87 and 3.91, respectively. The current ratio at September 30, 1995, was 1.97 compared to 2.00 at December 31, 1994, and 1.92 at September 30, 1994. Certain loan agreements of the Company include restrictions on working capital, operating leases, tangible net worth, and the payment of cash dividends and stock distributions. Under the most restrictive of these arrangements, retained earnings of $19.3 million are not restricted at September 30, 1995. As of September 30, 1995, the Company had available credit of $71 million with banks under short-term borrowing arrangements and a revolving line of credit, $70 million of which was available. Anticipated funds from operations, along with available short-term credit and other resources, are expected to be sufficient to meet cash requirements in the year ahead. Cash in excess of operating requirements will continue to be invested in high grade, short-term securities. PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (a) Exhibits (27) Financial Data Schedule (b) There have been no reports on Form 8-K filed during the quarter for which this report on Form 10-Q is being filed. SIGNATURE 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. THOMAS INDUSTRIES INC. Registrant /s/ Phillip J. Stuecker __________________________________ Phillip J. Stuecker, Vice President and Chief Financial Officer Date November 14, 1995 EX-27 2
5 This schedule contains first nine months summary information extracted from the Thomas Industries Inc. 1995 Third Quarter Form 10-Q and is qualified in its entirety by reference to such Form 10-Q filing. 1,000 9-MOS DEC-31-1995 SEP-30-1995 3,895 0 74,865 2,218 69,917 161,086 150,258 76,134 309,355 81,717 71,161 11,456 0 0 131,199 309,355 373,726 373,726 269,091 269,091 80,968 593 6,213 16,861 6,695 10,166 0 0 0 10,166 1.00 1.00
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