-----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, QPIKPlZHJHMuCX4i46J3LQCNkRVGH0bTo81f4kvSXVYphCjNtwzYwvptwlUZ0/qv YlZY8CatCqj+Tzmm45P16w== 0000914760-97-000088.txt : 19970508 0000914760-97-000088.hdr.sgml : 19970508 ACCESSION NUMBER: 0000914760-97-000088 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970507 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: 97597178 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 March 31, 1997 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 Not applicable (Former name, former address, and former fiscal year, if changed since last report.) 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 May 1, 1997, was 10,557,032 shares. PART I. FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) THOMAS INDUSTRIES INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Dollars in Thousands Except Amounts Per Share)
Three Months Ended March 31 1997 1996 Net sales $126,356 $123,524 Cost of products sold 88,099 88,405 Gross profit 38,257 35,119 Other (income) expense: Selling, general, and administrative expenses 30,363 29,155 Interest expense 1,625 1,927 Other (84) (170) Income before income taxes 6,353 4,207 Income tax provision 2,351 1,582 Net income $ 4,002 $ 2,625 Per Share amounts: Net income per share $.37 $.25 Dividends declared per share $.10 $.10 Average number of shares outstanding 10,773,362 10,672,669 See notes to condensed consolidated financial statements.
THOMAS INDUSTRIES INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in Thousands)
(Unaudited) March 31 December 31 ASSETS 1997 1996* Current assets Cash and cash equivalents $ 6,139 $ 18,826 Accounts receivable, less allowance (1997--$2,222; 1996--$2,243) 70,569 68,239 Inventories: Finished products 37,173 33,072 Raw materials 21,011 21,622 Work in process 14,312 14,553 72,496 69,247 Assets held for disposition 486 493 Deferred income taxes 7,208 7,167 Other current assets 7,074 6,392 Total current assets 163,972 170,364 Property, plant and equipment 151,887 149,719 Less accumulated depreciation and amortization 74.511 71,924 77,376 77,795 Intangible assets--less accumulated amortization 57,454 58,687 Other assets 13,764 12,804 Total assets $312,566 $319,650 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Notes payable $ 12,338 $ 6,986 Accounts payable 22,059 27,377 Other current liabilities 41,358 42,405 Current portion of long-term debt 7,838 7,758 Total current liabilities 83,593 84,526 Deferred income taxes 8,450 8,603 Long-term debt (less current portion) 54,822 62,632 Minimum pension liability 2,154 2,154 Other long-term liabilities 4,033 4,033 Total liabilities 153,052 161,948 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: 1997--11,579,553; 1996--11,549,940 11,580 11,550 Capital surplus 115,442 115,206 Retained earnings 53,366 50,420 Minimum pension liability adjustment (780) (780) Equity adjustment from translation (2,882) (1,482) Less cost of treasury shares: (1997--1,023,646; 1996--1,023,646) (17,212) (17,212) Total shareholders' equity 159,514 157,702 Total liabilities and shareholders' equity $312,566 $319,650 *Derived from the audited December 31, 1996, consolidated balance sheet. See notes to condensed consolidated financial statements.
THOMAS INDUSTRIES INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Dollars in Thousands)
Three Months Ended March 31 1997 1996 Cash flows from operating activities: Net income $ 4,002 $ 2,625 Reconciliation of net income to net cash provided by (used in) operating activities: Depreciation and amortization 4,295 4,235 Deferred income taxes 69 -- Provision for losses on accounts receivable 73 168 Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: Accounts receivable (2,850) (4,321) Inventories (4,007) (3,238) Other current assets (822) 1,040 Accounts payable (4,767) (3,625) Accrued expenses and other liabilities (626) (260) Other (1,333) 275 Net cash used in operating activities (5,966) (3,101) Cash flows from investing activities: Purchase of property, plant, and equipment (3,950) (3,198) Proceeds from sale of property, plant, and equipment 20 42 Net cash used in investing activities (3,930) (3,156) Cash flows from financing activities: Proceeds from short-term debt, net 5,841 1,291 Payments on long-term debt (7,730) (11,200) Dividends paid (1,053) (1,010) Other 151 116 Net cash used in financing activities (2,791) (10,803) Decrease in cash and cash equivalent (12,687) (17,060) Cash and cash equivalents at beginning of quarter 18,826 18,305 Cash and cash equivalents at end of quarter $ 6,139 $ 1,245 See notes to condensed 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 three-month period ended March 31, 1997, are not necessarily indicative of the results that may be expected for the year ending December 31, 1997. 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, 1996. Note B -- Contingencies In the normal course of business, the Company and its subsidiaries are parties to litigation. Management believes that these matters will be resolved with no material adverse impact on the financial position of the Company. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Net sales during the first quarter ended March 31, 1997, increased 2% over the first quarter of 1996 to $126.4 million. Net sales for the first quarter of 1997 are the highest for any first quarter in the Company's history. Lighting Segment sales increased 3% over the first quarter of 1996, primarily due to increased volume in the Consumer Division. Compressor & Vacuum Pump Segment sales were up 1% for the quarter over 1996, due primarily to strength in the North American operations. Net income for the first quarter of 1997 is $4.0 million, or 52% higher than the first quarter of 1996. The Lighting Segment operating income improved due to strength in the Consumer and C&I Divisions. Operating income for the Compressor & Vacuum Pump Segment increased in the first quarter of 1997 due to improved profitability, primarily in the European Segment. Lower interest expense also contributed to the increase in operating income as the Company continues to pay down long-term debt. Cost of products sold as a percent of sales decreased to 69.7% in the 1997 first quarter from 71.6% for the comparable 1996 period. Gross margins in the Lighting Segment in 1997 have improved due to increased efficiencies and continued implementation of cost containment programs. Compressor & Vacuum Pump Segment margins are above prior-year levels due principally to lower material costs. Selling, general, and administrative expense in the first quarter of 1997 was $1.2 million higher compared to the prior-year first quarter. SG&A expense as a percent of net sales was 24.0% in 1997 compared to 23.6% in 1996. In the Lighting Segment, SG&A expense increased primarily due to additional selling and information system expenditures to support the higher sales volume. SG&A expense in the Compressor & Vacuum Pump Segment declined in 1997, primarily due to reductions in administrative expenditures. Interest expense for the first three months of 1997 was 16% lower than the comparable 1996 period. A decrease in long-term debt was the primary cause for the lower interest expense. Working capital of $80.4 million at March 31, 1997, is 6% lower than the $85.8 million at December 31, 1996. Accounts receivable at March 31, 1997, have increased by 3% since December 31, 1996, due to seasonal factors in the Lighting Group; however, the number of days sales in receivables at March 31, 1997, compared to December 31, 1996, has improved to 48.1 days from 51.2 days. Inventory turnover at March 31, 1997, of 4.21 times per year has decreased slightly from the December 31, 1996, level of 4.34 times per year. The current ratio at March 31, 1997, was 1.96 compared to 2.02 at December 31, 1996. 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 $30.8 million are not restricted at March 31, 1997. As of March 31, 1997, the Company had available credit of $62.7 million with banks under short-term borrowing arrangements and a revolving line of credit, $58.8 million of which was unused. 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. PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (a) Exhibits (27) Financial Data Schedule (b) No reports on Form 8-K were filed during the quarter. 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 May 7, 1997 EX-27 2
5 1,000 3-MOS DEC-31-1997 MAR-31-1997 6,139 0 72,791 2,222 72,496 14,768 151,887 74,511 312,566 83,593 54,822 0 0 11,580 147,934 312,566 126,356 126,356 88,099 88,099 30,206 73 1,625 6,353 2,351 4,002 0 0 0 4,002 .37 .37
-----END PRIVACY-ENHANCED MESSAGE-----