-----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, M1JQafZTShJby+fNnfz2/cUl3z7NlMqh26wqAoggljeVHhdQDoCSptTAFh3y/dNM hE5V+kfX7R/zV9MHb7Dblw== 0000950123-03-011876.txt : 20031029 0000950123-03-011876.hdr.sgml : 20031029 20031029130943 ACCESSION NUMBER: 0000950123-03-011876 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031029 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031029 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PAXAR CORP CENTRAL INDEX KEY: 0000075681 STANDARD INDUSTRIAL CLASSIFICATION: COMMERCIAL PRINTING [2750] IRS NUMBER: 135670050 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09493 FILM NUMBER: 03962929 BUSINESS ADDRESS: STREET 1: 105 CORPORATE PARK DRIVE CITY: WHITE PLAINS STATE: NY ZIP: 10604 BUSINESS PHONE: 9146976800 FORMER COMPANY: FORMER CONFORMED NAME: PACKAGING SYSTEMS CORP DATE OF NAME CHANGE: 19870401 8-K 1 y91136e8vk.txt PAXAR CORPORATION UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): October 29, 2003 PAXAR CORPORATION (Exact name of registrant as specified in its charter) NEW YORK 1-9493 13-5670050 (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 105 CORPORATE PARK DRIVE WHITE PLAINS, NEW YORK 10604 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (914) 697-6800 NOT APPLICABLE (Former name or former address, if changed since last report) ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits. Exhibit 99.1 -- Paxar Corporation Press Release, issued October 29, 2003. ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On October 29, 2003, Paxar Corporation issued a press release announcing its third-quarter 2003 earnings. A copy of Paxar's press release is attached to this report as Exhibit 99.1 and incorporated by reference. 1 SIGNATURES 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 hereunto duly authorized. PAXAR CORPORATION (Registrant) Date: October 29, 2003 By: /s/ Jack R. Plaxe -------------------------------- Jack R. Plaxe Senior Vice President and Chief Financial Officer 2 EX-99.1 3 y91136exv99w1.txt PRESS RELEASE . . . Exhibit 99.1 News Release (PAXAR LOGO) PAXAR CORPORATION For additional 105 Corporate Park Drive information contact: White Plains, NY 10604 BOB POWERS 914.697.6800 Vice President Investor Relations 914.697.6862
FOR IMMEDIATE RELEASE PAXAR CORPORATION REPORTS THIRD QUARTER 2003 RESULTS WHITE PLAINS, NY, OCTOBER 29, 2003 - PAXAR CORPORATION (NYSE: PXR) today reported sales of $171 million, net income of $3.9 million and diluted earnings per share of $0.10 for the quarter ended September 30, 2003. In the third quarter of 2002, sales were $170 million, net income was $10.2 million and diluted earnings per share were $0.25. The 2003 quarter included restructuring and other charges totaling $4.1 million ($2.6 million net of income taxes or $0.07 per share) principally related to a non-cash charge for the write-off of certain software costs. In addition, the 2003 quarter was impacted by a $0.6 million charge ($0.4 million net of income taxes or $0.01 per share) due to the impact of recording Alkahn's inventories at fair value. The Company indicated that sales in the third quarter of 2003 benefited from foreign exchange by $4.5 million and from the acquisition of Alkahn by $3.3 million as compared to 2002. Arthur Hershaft, Chairman and Chief Executive Officer, said, "Our top line, which came in slightly below our guidance excluding sales generated by Alkahn, was impacted by weak economic conditions. Nevertheless, we were within our guidance for earnings per share exclusive of the restructuring and other charges taken in the quarter. We are benefiting from the impact of the cost containment efforts we began earlier this year, and we are planning a variety of new measures to increase productivity and reduce fixed costs." Mr. Hershaft continued, "More specifically, we are evaluating additional opportunities to consolidate our businesses in North America and Western Europe. It is our expectation that we will report restructuring charges associated with these activities over the next couple of quarters. Once completed, these initiatives are expected to generate $10 - $12 million in annual cost reductions by 2005. Most of these savings will occur in 2004 - more - PAXAR - Page 2 and will be in addition to the $9 - $10 million in SG&A savings previously targeted for 2004." Mr. Hershaft added, "I am pleased to report that the integration of Alkahn is progressing ahead of plan. I am confident that this acquisition will provide an excellent return on investment for our shareholders. Also, we continue to experience double-digit growth rates in places such as China and Turkey, and our start-ups in Dubai, Morocco, Indonesia and Bangladesh are contributing to growth." He concluded, "We anticipate fourth quarter 2003 earnings per share to be $0.22 - - $0.25 before restructuring and other charges of approximately $8 million ($7.7 million net of income taxes or $0.19 per share) and a $0.9 million ($0.6 million net of income taxes or $0.02 per share) charge for fair valuing Alkahn's inventory. Sales are expected to be in the range of $178 - $183 million. For the year, we estimate sales of $695 - $700 million and earnings per share of $0.74 - $0.77, excluding $0.40 per share for the effect of restructuring and other charges and $0.03 per share for fair valuing Alkahn's inventory." Paxar is a global leader in providing innovative merchandising systems to retailers and apparel manufacturers. Paxar's concept to checkout capabilities, leadership in products and technology, global manufacturing operations, worldwide distribution network and brand recognition are enabling the Company to expand its competitive advantage and market share. Statements in this release about the future outlook related to Paxar Corporation involve a number of factors affecting the Company's businesses and operations, which could cause actual future results to differ materially from those contemplated by forward-looking statements. Forward-looking statements include those indicated by words such as "project," "anticipate" and "expect." Affecting factors include general economic conditions, the performance of the Company's operations within its prevailing business markets around the world, as well as other factors set forth in Paxar's 2002 Form 10-K Annual Report. FOR MORE INFORMATION ON PAXAR CALL INVESTOR RELATIONS - 914.697.6862 OR VISIT OUR COMPANY'S WEB SITE WWW.PAXAR.COM - FINANCIAL TABLES TO FOLLOW - PAXAR - PAGE 3 PAXAR CORPORATION CONSOLIDATED STATEMENTS OF INCOME (IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
Three Months Ended Nine Months Ended September 30, September 30, ------- ------- ------- ------- 2003 2002 2003 2002 ------- ------- ------- ------- (Unaudited) (Unaudited) Sales $ 170.7 $ 170.1 $ 517.3 $ 495.9 Cost of sales 106.0 105.8 321.5 303.1 ------- ------- ------- ------- Gross profit 64.7 64.3 195.8 192.8 Selling, general and administrative expenses 52.6 48.9 160.6 144.9 Restructuring and other charges 4.1 -- 10.8 -- ------- ------- ------- ------- Operating income 8.0 15.4 24.4 47.9 Interest expense, net 2.9 3.1 8.4 8.5 ------- ------- ------- ------- Income before taxes 5.1 12.3 16.0 39.4 Taxes on income 1.2 2.1 3.7 8.6 ------- ------- ------- ------- Net income $ 3.9 $ 10.2 $ 12.3 $ 30.8 ======= ======= ======= ======= Basic earnings per share $ 0.10 $ 0.26 $ 0.32 $ 0.78 Diluted earnings per share $ 0.10 $ 0.25 $ 0.31 $ 0.76 ======= ======= ======= ======= Weighted average shares outstanding: Basic 39.0 39.5 39.0 39.5 Diluted 39.5 40.3 39.5 40.4 ======= ======= ======= ======= Ratios Gross margin 37.9% 37.8% 37.9% 38.9% SG&A to sales 30.8% 28.7% 31.0% 29.2% Operating margin 4.7% 9.1% 4.7% 9.7% Net margin 2.3% 6.0% 2.4% 6.2% ======= ======= ======= ======= Effective tax rate 23.0% 17.1% 23.0% 21.8% ======= ======= ======= =======
- more - PAXAR - PAGE 4 PAXAR CORPORATION CONSOLIDATED BALANCE SHEETS (IN MILLIONS)
September 30, December 31, 2003 2002 ------------- ------------ (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 62.1 $ 49.6 Accounts receivable 120.8 106.8 Inventories 99.8 83.8 Deferred income taxes 10.9 10.5 Other current assets 20.6 14.3 ------ ------ Total current assets 314.2 265.0 ------ ------ Property, plant and equipment, net 165.2 154.9 Goodwill and other intangibles, net 209.3 197.7 Other assets 22.1 22.0 ------ ------ $710.8 $639.6 ====== ====== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Due to banks $ 4.4 $ 2.1 Current maturities of long-term debt 0.1 0.1 Accounts payable and accrued liabilities 100.8 94.5 Accrued taxes on income 15.0 13.9 ------ ------ Total current liabilities 120.3 110.6 ------ ------ Long-term debt 198.2 164.5 Deferred income taxes 12.8 12.1 Other liabilities 15.5 14.8 Shareholders' equity 364.0 337.6 ------ ------ $710.8 $639.6 ====== ======
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