-----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, EQn+hTEBV9wzYSxuKCbpkNAS2D/PrteGcg4QbeBAV48xNMa0Xcr/VD5hu4PJrqRG 2gQU1KrnUzNbLp0XdzcBFw== 0000746598-95-000004.txt : 19950421 0000746598-95-000004.hdr.sgml : 19950421 ACCESSION NUMBER: 0000746598-95-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950131 FILED AS OF DATE: 19950420 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: BRADY W H CO CENTRAL INDEX KEY: 0000746598 STANDARD INDUSTRIAL CLASSIFICATION: MISCELLANEOUS MANUFACTURING INDUSTRIES [3990] IRS NUMBER: 390178960 STATE OF INCORPORATION: WI FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-12730 FILM NUMBER: 95529940 BUSINESS ADDRESS: STREET 1: 727 W GLENDALE AVE STREET 2: PO BOX 571 CITY: MILWAUKEE STATE: WI ZIP: 53201 BUSINESS PHONE: 4143328100 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended January 31, 1995 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission File Number 0-12730 W. H. BRADY CO. (Exact name of registrant as specified in its charter) Wisconsin (State of other jurisdiction of incorporation or organization) 39-0178960 (I.R.S. Employer Identification No.) 727 West Glendale Avenue, Milwaukee, Wisconsin 53201 (Address of principal executive offices) (Zip Code) (414) 332-8100 (Registrant's telephone number, including area code) Indicated 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 (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 APPLICABLE ONLY TO CORPORATE ISSUERS Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. As of March 1, 1995, there were outstanding 5,502,444 shares of Class A Common Stock and 1,769,314 shares of Class B Common Stock. The Class B Common Stock, all of which is held by an affiliate of the Registrant, is the only voting stock. FORM 10-Q W. H. BRADY CO. INDEX PART I. Financial Information Item 1. Financial Statements Unaudited Condensed Consolidated Balance Sheets . . . . . . . . . . . . . . . . . . . . . . .3 Unaudited Condensed Consolidated Statements of Income and Earnings Retained in Business. . . . .4 Unaudited Consolidated Statements of Cash Flows. . . . . . . . . . . . . . . . . . . .5 Notes to Condensed Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . .6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. . . . .7 PART II. Other Information. . . . . . . . . . . . . . . . . . .8 Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . .8 W. H. BRADY CO. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in Thousands)
Jan 31 July 31 1995 1994 (Unaudited) ASSETS Current Assets: Cash and Cash Equivalents $ 72,132 $ 66,107 Accounts Receivable, Less Allowance for Losses ($1,776 and $1,565, Respectively) 36,368 32,308 Inventories 24,099 23,737 Prepaid Expenses & Other Current Assets 13,193 9,611 Total Current Assets 145,792 131,763 Other Assets 6,221 6,403 Property Plant and Equipment: Cost Land 4,705 4,689 Buildings and Improvements 38,649 38,431 Machinery and Equipment 74,885 72,576 Construction in Progress 1,518 939 119,757 116,635 Less Accumulated Depreciation 56,917 52,292 Net Property, Plant & Equipment 62,840 64,343 Total $214,853 $202,509 LIABILITIES AND STOCKHOLDERS' INVESTMENT Current Liabilities: Accounts Payable $ 11,633 $ 9,678 Wages & Amounts Withheld From Employees 11,456 10,479 Accrued Income Taxes 3,948 2,999 Other Current Liabilities 7,107 8,179 Current Maturities on Long Term Debt 166 405 Total Current Liabilities 34,310 31,740 Long Term Debt, Less Current Maturities 1,814 1,855 Other Liabilities 23,689 23,785 Total Liabilities 59,813 57,380 Stockholders' Investment: Preferred Stock 2,855 2,855 Class A Nonvoting Common Stock-Issued and Outstanding 5,502,444 and 5,476,812 Shares, Respectively 55 54 Class B Voting Common Stock-Issued and Outstanding 1,769,314 Shares 18 18 Additional Paid in Capital 7,600 6,768 Earnings Retained in the Business 140,448 132,271 Cumulative Translation Adjustments 4,064 3,163 Total Stockholders' Investment 155,040 145,129 Total $214,853 $202,509 See Notes to Condensed Consolidated Financial Statements.
W. H. BRADY CO. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND EARNINGS RETAINED IN BUSINESS (Dollars in Thousands except per share amounts) (UNAUDITED)
Three Months Ended Jan 31 Six Months Ended Jan 31 1995 1994 1995 1994 Net Sales $ 78,857 $ 64,109 $147,896 $123,744 Operating Expenses: Cost of Products Sold 36,917 29,992 69,059 58,243 Research & Development 2,711 2,664 5,247 5,371 Selling, General and Administrative 29,515 25,357 56,067 47,097 Total Operating Expenses 69,143 58,013 130,373 110,711 Operating Income 9,714 6,096 17,523 13,033 Investment and Other Income 609 301 1,128 610 Interest Expense (149) (76) (192) (123) Income Before Income Taxes 10,174 6,321 18,459 13,520 Income Taxes 4,075 2,460 7,426 5,481 Net Income $ 6,099 $ 3,861 $ 11,033 $ 8,039 Earnings Retained in Business at Beginning of Period 135,868 121,793 132,271 118,730 Less Dividends: Preferred Stock (65) (65) (130) (130) Common Stock (1,454) (1,228) (2,726) (2,278) Earnings Retained in Business at End of Period $140,448 $124,361 $140,448 $124,361 Net Income Per Common Share Net Income - Class A Nonvoting $ 0.83 $ 0.53 $ 1.53 $ 1.12 Net Income - Class B Voting $ 0.83 $ 0.53 $ 1.43 $ 1.02 See Notes to Condensed Consolidated Financial Statements.
W. H. BRADY CO. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in Thousands) (Unaudited)
Six Months Ended January 31 1995 1994 Net Income $11,033 $ 8,039 Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities: Depreciation & Amortization 4,954 4,860 Loss (Gain) on Sale of Equipment (7) 123 Provision for Losses on A/R 377 245 Changes in Operating Assets and Liabilities: (Incr) Decr in A/R (4,527) (313) (Incr) Decr in Inventory (63) 655 (Incr) Decr in Prepaid Expense (3,410) (940) Incr (Decr) in A/P & Other Liabilities 1,510 704 Incr (Decr) in Income Taxes 833 1,107 Net Cash Provided by (Used in) Operating Activities (333) 14,480 Investing Activities: Purchases of Property, Plant and Equipment (3,213) (3,097) Proceeds from Sale of Property, Plant and Equipment 128 188 Net Cash Used in Investing Activities (3,085) (2,909) Financing Activities: Principal Payments on Long Term Debt (313) (282) Payment of Dividends (2,856) (2,408) Proceeds from Issuance of Common Stock 833 578 Net Cash Used in Financing Activities (2,336) (2,112) Effect of Exchange Rate Changes on Cash 746 (28) Net Incr (Decr) in Cash and Cash Equivalents 6,025 9,431 Cash & Cash Equivalents at Beginning of Year 66,107 42,366 Cash and Cash Equivalents at End of Period 72,132 $51,797 Supplemental Disclosures of Cash Flow Information: Cash Paid During the Year For: Interest $ 387 $ 123 Income Taxes 7,223 5,239 See Notes to Condensed Consolidated Financial Statements.
W. H. BRADY CO. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Six months ended January 3l, l995 NOTE A - Basis of Presentation The condensed consolidated financial statements included herein have been prepared by the Company without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of the Company, the foregoing statements contain all adjustments, consisting only of normal recurring accruals, necessary to present fairly the financial position of the Company as of January 3l, 1995 and July 3l, 1994, and its results of operations and its cash flows for the three months and six months ended January 31, 1995 and l994. The consolidated balance sheet at July 31, l994 has been taken from the audited financial statements of that date and condensed. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these condensed financial statements be read in conjunction with the financial statements and the notes thereto included in the Company's latest annual report. It is not practical to segregate the amounts of raw material, work in process or finished goods at the respective interim balance sheet dates. NOTE B - Net Earnings Per Common Share Net earnings per common share were computed by dividing net earnings (after deducting the applicable preferred stock and preferential Class A common stock dividends) by the weighted average number of Class A and Class B common shares outstanding of 7,259,517 for the three months and six months ended January 31, 1995 and 7,216,147 for the same periods in 1994. The preferential dividend on the Class A common stock of $.10 per share declared on September 23, 1994 has been added to the net earnings per Class A common share for the six months ended January 31, 1995. The net earnings per Class A common share for the six months ended January 31, 1994 includes $.10 per share relating to preferential dividends declared in that period. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Results of Operations For the three months ended January 31, 1995 revenues of $78,857,000 were 23.0% higher than the same quarter of the previous year. For the six months ended January 31, 1995 revenues of $147,896,000 were 19.5% higher than the same period last year. Sales of the Company's international operations increased 34.5% for the quarter and 28.9% for the six months as a result of both real growth through continued market penetration in Europe and the Far East and changes in the exchange rates used to translate financial results into U.S. currency. Sales of the Company's U.S. operations increased 16.3% for the quarter and 14.2% for the six month period. The cost of products sold as a percentage of sales was 46.8% for the quarter and 46.7% for the six months ended January 31, 1995. For the same periods last year these percentages were 46.8% and 47.1%. The decrease in the six month period is a result of changes in product mix. Selling, general and administrative expenses as a percentage of sales were 37.4% for the quarter compared to 39.6% for the same quarter of the previous year. For the six months ended January 31, 1995, this percentage was 37.9% compared to 38.1% for the same period last year. Research and development expenses increased 1.8% for the quarter but decreased 2.3% for the six months ended January 31, 1995 over the same periods last year. Income before income taxes increased 61.0% for the quarter and 36.5% for the six months ended January 31, 1995. Net income increased 58.0% to $6,099,000 compared to $3,861,000 for the same quarter of the previous year. For the six months ended January 31, 1995 net income increased 37.2% to $11,033,000 from $8,039,000 for the same period last year. Financial Condition The Company's liquidity remains strong. The current ratio as of January 31, 1995 was 4.2 to 1. Cash and cash equivalents were $72,132,000 at January 31, 1995 compared to $66,107,000 at July 31, 1994. Working capital increased $11,459,000 during the six months and equaled $111,482,000 as of January 31, 1995. The Company believes this amount is adequate to meet its current and anticipated operating needs. PART II ITEM 6. Exhibits and Reports on Form 8-K. (a) Exhibits None (b) Reports on Form 8-K The Company was not required to file and did not file a report on Form 8-K during the quarter ended January 31, 1995. Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. SIGNATURES W.H. BRADY CO. Date: March 9, l995 /S/ K. M. Hudson K. M. Hudson President Date: March 9, 1995 /S/ D. P. DeLuca D. P. DeLuca Senior Vice President and Assistant Secretary (Principal Accounting Officer) EX-27 2 ARTICLE 5 FDS FOR 2ND QUARTER 10-Q
5 1,000 JUL-31-1995 AUG-01-1994 JAN-31-1995 6-MOS 72,132 0 38,144 1,776 24,099 145,792 119,757 56,917 214,853 34,310 1,814 2,855 0 73 152,112 214,853 147,896 147,896 69,059 69,059 61,314 0 192 18,459 7,426 11,033 0 0 0 11,033 1.53 0
-----END PRIVACY-ENHANCED MESSAGE-----