-----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, RwOOYCSCvgOyhOWUySk1qbYmX8ywOFtA7XA6ZtdUWoYgUY8MJU67dn+iKIkERdaK ju7/4GfC/zFYrxamE2zZdQ== 0000746598-95-000008.txt : 19950615 0000746598-95-000008.hdr.sgml : 19950615 ACCESSION NUMBER: 0000746598-95-000008 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950430 FILED AS OF DATE: 19950614 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: 95547025 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 FORM 10 - Q 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 April 30, 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 or other jurisdiction of incorporation or organization) 39-0178960 (I.R.S. Employer Identification No.) 6555 West Good Hope Road, Milwaukee, Wisconsin 53223 (Address of principal executive offices) (Zip Code) (414) 358-6600 (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 June 1, 1995, there were outstanding 5,504,859 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 PAGE PART I. Financial Information Item 1. Financial Statements Condensed Consolidated Balance Sheets. . . . . . . .3 Unaudited Condensed Consolidated Statements of Income. . . . . . . . . . . . . . . . . . . . . .4 Unaudited Condensed 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)
Apr. 30, July 31, 1995 1994 (Unaudited) ASSETS Current Assets: Cash and Cash Equivalents $ 93,696 $ 66,107 Accounts Receivable, Less Allowance for Losses ($1,943 and $1,565, Respectively) 42,791 32,308 Inventories 21,700 23,737 Prepaid Expenses & Other Current Assets 11,427 9,611 Total Current Assets 169,614 131,763 Other Assets 6,462 6,403 Property Plant and Equipment: Cost Land 4,413 4,689 Buildings and Improvements 33,195 38,431 Machinery and Equipment 68,457 72,576 Construction in Progress 1,755 939 107,820 116,635 Less Accumulated Depreciation 49,848 52,292 Net Property, Plant & Equipment 57,972 64,343 Total $234,048 $202,509 LIABILITIES AND STOCKHOLDERS' INVESTMENT Current Liabilities: Accounts Payable $ 13,102 $ 9,678 Wages & Amounts Withheld From Employees 12,704 10,479 Accrued Income Taxes 6,981 2,999 Other Current Liabilities 9,756 8,179 Current Maturities on Long-Term Debt 101 405 Total Current Liabilities 42,644 31,740 Long Term Debt, Less Current Maturities 1,880 1,855 Other Liabilities 24,650 23,785 Total Liabilities 69,174 57,380 Stockholders' Investment: Preferred Stock 2,855 2,855 Class A Nonvoting Common Stock-Issued and Outstanding 5,504,859 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 7,681 6,768 Earnings Retained in the Business 148,472 132,271 Cumulative Translation Adjustments 5,793 3,163 Total Stockholders' Investment 164,874 145,129 $234,048 $202,509 See Notes to Condensed Consolidated Financial Statements. /TABLE W. H. BRADY CO. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Dollars in Thousands except per share amounts) (UNAUDITED)
Three Months Ended Apr 30 Nine Months Ended Apr 30 1995 1994 1995 1994 Net Sales $ 83,321 $ 65,888 $231,217 $189,632 Operating Expenses: Cost of Products Sold 37,156 30,143 106,215 88,386 Research & Development 2,543 2,465 7,790 7,836 Selling, General and Administrative 29,899 24,494 85,966 71,591 Total Operating Expenses 69,598 57,102 199,971 167,813 Operating Income 13,723 8,786 31,246 21,819 Investment and Other Income-Net 2,234 371 3,362 981 Interest Expense (101) (102) (293) (225) Income Before Income Taxes 15,856 9,055 34,315 22,575 Income Taxes 6,312 3,490 13,738 8,971 Net Income $ 9,544 $ 5,565 $ 20,577 $ 13,604 Earnings Retained in Business at Beginning of Period 140,448 124,361 132,271 118,730 Less Dividends: Preferred Stock (65) (65) (194) (194) Common Stock (1,455) (1,229) (4,182) (3,508) Earnings Retained in Business at End of Period $148,472 $128,632 $148,471 $128,632 Net Income Per Common Share Net Income - Class A Nonvoting $ 1.30 $ 0.76 $ 2.83 $ 1.88 Net Income - Class B Voting $ 1.30 $ 0.76 $ 2.73 $ 1.78 See Notes to Condensed Consolidated Financial Statements. /TABLE W. H. BRADY CO. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in Thousands) (Unaudited)
Nine Months Ended April 30 1995 1994 Net Income $20,569 $ 13,604 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation & Amortization 7,128 7,145 Loss (Gain) on Sale of Equipment (557) (84) Loss (Gain) on Sale of Business (700) (0) Provision for Losses on A/R 519 336 Changes in Operating Assets and Liabilities: (Excluding the sale of businesses in 1995) (Incr) Decr in A/R (12,788) (3,313) (Incr) Decr in Inventory 1,920 1,341 (Incr) Decr in Prepaid Expense (1,569) (4,148) Incr (Decr) in A/P & Other Liabilities 4,755 3,393 Incr (Decr) in Income Taxes 3,548 7,721 Net Cash Provided by Operating Activities 22,875 26,163 Investing Activities: Purchases of Property, Plant and Equipment (5,704) (5,172) Proceeds from Sale of Property, Plant and Equipment - Net 4,035 244 Proceeds from Sale of Business - Net 8,375 0 Purchase of Other L/T Investment (750) 0 Net Cash Provided by (Used in) Investing Activities 5,956 (4,928) Financing Activities: Principal Payments on Long Term Debt (383) (342) Payment of Dividends (4,376) (3,702) Proceeds from Issuance of Common Stock 914 773 Net Cash Used in Financing Activities (3,845) (3,271) Effect of Exchange Rate Changes on Cash 2,653 202 Net Incr (Decr) in Cash and Cash Equivalents 27,589 18,166 Cash & Cash Equivalents at Beginning of Year 66,107 42,366 Cash and Cash Equivalents at End of Period $93,696 $ 60,532 Supplemental Disclosures of Cash Flow Information: Cash Paid During the Year For: Interest 112 58 Income Taxes 9,752 6,214 See Notes to Condensed Consolidated Financial Statements. /TABLE W. H. BRADY CO. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Nine months ended April 30, 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 April 30, 1995 and July 31, 1994, and its results of operations and its cash flows for the three months and nine months ended April 30, 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. These condensed financial statements should 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 7,263,663 for the three months and nine months ended April 30, 1995 and 7,221,301 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 nine months ended April 30, 1995. The net earnings per Class A common share for the nine months ended April 30, 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 April 30, 1995 revenues of $83,321,000 were 26.5% higher than the same quarter of the previous year. For the nine months ended April 30, 1995 revenues of $231,217,000 were 21.9% higher than the same period last year. Sales of the Company's international operations increased 41.5% for the quarter and 33.4% for the nine 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 17.3% for the quarter and 15.3% for the nine month period. The cost of products sold as a percentage of sales was 44.6% for the quarter and 45.9% for the nine months ended April 30, 1995. For the same periods last year these percentages were 45.8% and 46.6%. These decreases from period to period were caused by changes in product mix and the Company's continuous improvement efforts. Selling, general and administrative expenses as a percentage of sales were 35.9% for the quarter compared to 37.2% for the same quarter of the previous year. For the nine months ended April 30, 1995, this percentage was 37.2% compared to 37.8% for the same period last year. Research and development expenses increased 3.2% for the quarter and decreased 0.6% for the nine months ended April 30, 1995 over the same periods last year. Investment and other income for the quarter and the nine months ended April 30, 1995 includes approximately $1,500,000 ($900,000 net of taxes) from the sale of two businesses and two buildings. Income before income taxes increased 75.1% for the quarter and 52.0% for the nine months ended April 30, 1995. Net income increased 71.5% to $9,544,000 compared to $5,655,000 for the same quarter of the previous year. For the nine months ended April 30, 1995 net income increased 51.3% to $20,577,000 from $13,604,000 for the same period last year. Financial Condition The Company's liquidity remains strong. The current ratio as of April 30, 1995 was 4.0 to 1. Cash and cash equivalents were $93,696,000 at April 30, 1995 compared to $66,107,000 at July 31, 1994. Working capital increased $26,947,000 during the nine months and equaled $126,970,000 as of April 30, 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 April 30, 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: June 2, 1995 /S/ K. M. Hudson K. M. Hudson President Date: June 2, 1995 /S/ D. P. DeLuca D. P. DeLuca Senior Vice President and Assistant Secretary (Principal Accounting Officer) EX-27 2 ARTICLE 5 FDS FOR 3RD QUARTER 10-Q
5 1,000 JUL-31-1995 AUG-01-1994 APR-30-1995 9-MOS 93,696 0 44,734 1,943 21,700 169,614 107,820 49,848 234,048 42,644 1,880 2,855 0 73 161,946 234,048 231,217 231,217 106,215 106,215 93,756 0 293 34,315 13,738 20,577 0 0 0 20,577 2.83 2.83
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