10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED March 31, 2013

☐  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  1-2451

NATIONAL PRESTO INDUSTRIES, INC.

(Exact name of registrant as specified in its charter)

WISCONSIN	39-0494170
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
3925 NORTH HASTINGS WAY EAU CLAIRE, WISCONSIN	54703-3703
(Address of principal executive offices)	(Zip Code)

(Registrant’s telephone number, including area code) 715-839-2121

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 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  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  ☐ Accelerated filer  ☒ Non-accelerated filer  ☐ Smaller reporting company  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes  ☐    No  ☒

There were 6,896,366 shares of the Issuer’s Common Stock outstanding as of May 1, 2013.

PART I – FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

NATIONAL PRESTO INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, 2013 and December 31, 2012
(Unaudited)
(Dollars in thousands)

	2013				2012
ASSETS
CURRENT ASSETS:
Cash and cash equivalents			$	43,047			$	37,437
Marketable securities				55,043				55,586
Accounts receivable, net				50,529				76,443
Inventories:
Finished goods	$	37,805			$	33,851
Work in process		50,051				40,340
Raw materials		9,021		96,877		9,173		83,364
Deferred tax assets				8,906				8,906
Other current assets				15,853				9,018
Total current assets				270,255				270,754
PROPERTY, PLANT AND EQUIPMENT		129,164				123,418
Less allowance for depreciation		63,645		65,519		61,553		61,865
GOODWILL & OTHER INTANGIBLES				17,555				17,722
NOTE RECEIVABLE				3,602				3,571
			$	356,931			$	353,912

The accompanying notes are an integral part of the consolidated financial statements.

2

NATIONAL PRESTO INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, 2013 and December 31, 2012
(Unaudited)
(Dollars in thousands)

	2013				2012
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
CURRENT LIABILITIES:
Accounts payable			$	34,327			$	39,077
Federal and state income taxes				2,678				1,642
Accrued liabilities				14,904				15,254
Total current liabilities				51,909				55,973
DEFERRED INCOME TAXES				7,372				7,368
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Common stock, $1 par value:
Authorized: 12,000,000 shares
Issued: 7,440,518 shares	$	7,441			$	7,441
Paid-in capital		4,620				4,472
Retained earnings		302,497				295,643
Accumulated other comprehensive income		61				53
		314,619				307,609
Treasury stock, at cost		16,969				17,038
Total stockholders’ equity				297,650				290,571
			$	356,931			$	353,912

The accompanying notes are an integral part of the consolidated financial statements.

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NATIONAL PRESTO INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Three Months Ended March 31, 2013 and April 1, 2012
(Unaudited)
(In thousands except per share data)

	Three Months Ended
	2013		2012
Net sales	$	83,190	$	96,773
Cost of sales		66,981		76,421
Gross profit		16,209		20,352
Selling and general expenses		5,851		5,862
Operating profit		10,358		14,490
Other income		208		261
Earnings before provision for income taxes		10,566		14,751
Income tax provision		3,712		5,407
Net earnings	$	6,854	$	9,344
Weighted average shares outstanding:
Basic		6,903		6,883
Diluted		6,906		6,885
Net earnings per share:
Basic	$	0.99	$	1.36
Diluted	$	0.99	$	1.36
Comprehensive income:
Net earnings	$	6,854	$	9,344
Other comprehensive income, net of tax:
Unrealized gain on available-for-sale securities		8		4
Comprehensive income	$	6,862	$	9,348
Cash dividends declared and paid per common share	$	0.00	$	6.00

The accompanying notes are an integral part of the consolidated financial statements.

4

NATIONAL PRESTO INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended March 31, 2013 and April 1, 2012
(Unaudited)
(Dollars in thousands)

	2013			2012
Cash flows from operating activities:
Net earnings	$	6,854		$	9,344
Adjustments to reconcile net earnings to net cash provided by operating activities:
Provision for depreciation		2,114			2,434
Intangibles amortization		167			—
Provision for doubtful accounts		56			100
Other		109			292
Changes in:
Accounts receivable		25,914			7,004
Inventories		(13,513	)		(812	)
Other current assets		(6,835	)		(11	)
Accounts payable and accrued liabilities		(5,088	)		(9,829	)
Federal and state income taxes		1,043			3,142
Net cash provided by operating activities		10,821			11,664
Cash flows from investing activities:
Marketable securities purchased		(1,709	)		(1,623	)
Marketable securities - maturities and sales		2,264			6,372
Acquisition of property, plant and equipment		(5,769	)		(4,493	)
Sale of property, plant and equipment		3			—
Net cash provided by (used in) investing activities		(5,211	)		256
Cash flows from financing activities:
Dividends paid		—			(41,292	)
Other		—			357
Net cash used in financing activities		—			(40,935	)
Net increase (decrease) in cash and cash equivalents		5,610			(29,015	)
Cash and cash equivalents at beginning of period		37,437			73,995
Cash and cash equivalents at end of period	$	43,047		$	44,980

The accompanying notes are an integral part of the consolidated financial statements.

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NATIONAL PRESTO INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE A – BASIS OF PRESENTATION

The consolidated interim financial statements included herein are unaudited and have been prepared by the Company pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). In the opinion of management of the Company, the consolidated interim financial statements reflect all the adjustments which were of a normal recurring nature necessary for a fair presentation of the results of the interim periods. The condensed consolidated balance sheet as of December 31, 2012 is summarized from consolidated financial statements, but does not include all the disclosures contained therein and should be read in conjunction with the 2012 Annual Report on Form 10-K. Interim results for the period are not indicative of those for the year.

NOTE B – RECLASSIFICATIONS

Certain reclassifications have been made to the prior periods’ financial statements to conform to the current period’s financial statement presentation. These reclassifications did not affect net earnings or stockholders’ equity as previously reported.

NOTE C – EARNINGS PER SHARE

Basic earnings per share is based on the weighted average number of common shares and participating securities outstanding during the period. Diluted earnings per share also includes the dilutive effect of additional potential common shares issuable under the Company’s stock-based Incentive Compensation Plan, which are determined using the treasury stock method. Unvested stock awards, which contain non-forfeitable rights to dividends whether paid or unpaid (“participating securities”), are included in the number of shares outstanding for both basic and diluted earnings per share calculations.

NOTE D – BUSINESS SEGMENTS

In the following summary, operating profit represents earnings before other income, principally interest income and income taxes. The Company’s segments operate discretely from each other with no shared manufacturing facilities. Costs associated with corporate activities (such as cash and marketable securities management) and the assets associated with such activities are included within the Housewares/Small Appliances segment for all periods presented.

	(in thousands)
	Housewares / Small Appliances		Defense Products		Absorbent Products		Total
Quarter ended March 31, 2013
External net sales	$	24,889	$	38,951	$	19,350	$	83,190
Gross profit		4,457		10,066		1,686		16,209
Operating profit		1,558		7,665		1,135		10,358
Total assets		188,776		108,200		59,955		356,931
Depreciation and amortization		282		681		1,318		2,281
Capital expenditures		114		1,583		4,072		5,769
Quarter ended April 1, 2012
External net sales	$	24,692	$	49,681	$	22,400	$	96,773
Gross profit		4,697		13,873		1,782		20,352
Operating profit		1,735		11,690		1,065		14,490
Total assets		183,219		122,723		67,718		373,660
Depreciation		266		801		1,367		2,434
Capital expenditures		248		21		4,224		4,493

NOTE E - FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company utilizes the methods of fair value as described in Financial Accounting Standard Board (“FASB”) Accounting Standard Codification (“ASC”) 820, Fair Value Measurements and Disclosures, to value its financial assets and liabilities. ASC 820 utilizes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

The carrying amount for cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximates fair value due to the immediate or short-term maturity of these financial instruments.

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NOTE F - CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES

The Company considers all highly liquid marketable securities with an original maturity of three months or less to be cash equivalents. Cash equivalents include money market funds. The Company deposits its cash in high quality financial institutions. The balances, at times, may exceed federally insured limits. Money market funds are reported at fair value determined using quoted prices in active markets for identical securities (Level 1, as defined by FASB ASC 820).

The Company has classified all marketable securities as available-for-sale which requires the securities to be reported at fair value, with unrealized gains and losses, net of tax, reported as a separate component of stockholders’ equity. Highly liquid, tax-exempt variable rate demand notes with put options exercisable in three months or less are classified as marketable securities.

At March 31, 2013 and December 31, 2012, cost for marketable securities was determined using the specific identification method. A summary of the amortized costs and fair values of the Company’s marketable securities at the end of the periods presented is shown in the following table. All of the Company’s marketable securities are classified as Level 2, as defined by FASB ASC 820, with fair values determined using significant other observable inputs, which include quoted prices in markets that are not active, quoted prices of similar securities, recently executed transactions, broker quotations, and other inputs that are observable. There were no transfers into or out of Level 2 during the three months ended March 31, 2013.

	(In Thousands)
	MARKETABLE SECURITIES
	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
March 31, 2013
Tax-exempt  Municipal Bonds	$	22,688	$	22,783	$	99	$	4
Variable Rate Demand Notes		32,260		32,260		—		—
Total Marketable Securities	$	54,948	$	55,043	$	99	$	4
December 31, 2012
Tax-exempt  Municipal Bonds	$	24,412	$	24,494	$	94	$	12
Variable Rate Demand Notes		31,092		31,092		—		—
Total Marketable Securities	$	55,504	$	55,586	$	94	$	12

Proceeds from maturities and sales of available-for-sale securities totaled $2,264,000 and $6,372,000 for the three month periods ended March 31, 2013 and April 1, 2012. There were no gross gains or losses related to sales of marketable securities during the same periods. Net unrealized gains included in other comprehensive income, were $12,000 and $5,000 before taxes for the three month periods ended March 31, 2013 and April 1, 2012, respectively. No unrealized gains or losses were reclassified out of accumulated other comprehensive income during the same periods.

The contractual maturities of the marketable securities held at March 31, 2013 are as follows: $5,292,000 within one year; $24,360,000 beyond one year to five years; $8,519,000 beyond five years to ten years, and $16,872,000 beyond ten years. All of the instruments in the beyond five year ranges are variable rate demand notes which can be tendered for cash at par plus interest within seven days. Despite the stated contractual maturity date, to the extent a tender is not honored, the notes become immediately due and payable.

NOTE G – COMMITMENTS AND CONTINGENCIES

The Company is involved in largely routine litigation incidental to its business. Management believes the ultimate outcome of the litigation will not have a material effect on the Company’s consolidated financial position, liquidity, or results of operations.

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ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-looking statements in this Management’s Discussion and Analysis of Financial Condition and Results of Operations, elsewhere in this Form 10-Q, in the Company’s 2012 Annual Report to Shareholders, in the Proxy Statement for the annual meeting to be held May 21, 2013, and in the Company’s press releases and oral statements made with the approval of an authorized executive officer are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. There are certain important factors that could cause results to differ materially from those anticipated by some of the statements made herein. Investors are cautioned that all forward-looking statements involve risks and uncertainty. In addition to the factors discussed herein and in the notes to consolidated financial statements, among the other factors that could cause actual results to differ materially are the following: consumer spending and debt levels; interest rates; continuity of relationships with and purchases by major customers; product mix; the benefit and risk of business acquisitions; competitive pressure on sales and pricing; development and market acceptance of new products; increases in material, freight/shipping, or production cost which cannot be recouped in product pricing; delays or interruptions in shipping or production; shipment of defective product which could result in product liability claims or recalls; work or labor disruptions stemming from a unionized work force; changes in government requirements, military spending, and funding of government contracts, which could result, among other things, in the modification or termination of existing contracts; dependence on subcontractors or vendors to perform as required by contract; the efficient start-up and utilization of capital equipment investments; and political actions of federal and state governments which could have an impact on everything from the value of the U.S dollar vis-à-vis other currencies to the availability of affordable labor and energy. Additional information concerning these and other factors is contained in the Company’s Securities and Exchange Commission filings.

Comparison of First Quarter 2013 and 2012

Readers are directed to Note D to the Consolidated Financial Statements, “Business Segments,” for data on the financial results of the Company’s three business segments for the quarters ended March 31, 2013 and April 1, 2012.

On a consolidated basis, sales decreased by $13,583,000 (14%), gross profit decreased by $4,143,000 (20%), selling and general expenses decreased by $11,000 (less than 1%), and other income decreased by $53,000 (20%). Earnings before the provision for income taxes decreased by $4,185,000 (28%), as did net earnings by $2,490,000 (27%). Details concerning these changes can be found in the comments by segment below.

Housewares/Small Appliance net sales were essentially flat, increasing nominally by $197,000 from $24,692,000 to $24,889,000, or 1%. Defense net sales decreased by $10,730,000 from $49,681,000 to $38,951,000, or 22%, primarily reflecting a decrease in unit shipments. Absorbent Products net sales decreased by $3,050,000 from $22,400,000 to $19,350,000, or 14%, and was chiefly attributable to a reduction of shipments of $3,284,000 to the segment’s major customer, which is producing much of its own product, and the absence of last year’s first quarter shipments of $598,000 of raw materials to an independent manufacturing facility. These decreases were offset in part by an increase in shipments to other customers.

Housewares/Small Appliance gross profit decreased $240,000 from $4,697,000 to $4,457,000, or 5%, primarily due to an increase in product and logistics costs. Defense gross profit decreased $3,807,000 from $13,873,000 to $10,066,000, or 27%, primarily attributable to the decrease in sales mentioned above, augmented by a less favorable product mix. Absorbent Products gross profit decreased $96,000 from $1,782,000 to $1,686,000, or 5%, reflecting the sales decrease mentioned above, largely offset by an insurance settlement of $553,000.

8

Selling and general expenses for the Housewares/Small Appliance segment were essentially flat. Defense segment selling and general expenses increased by $218,000, primarily reflecting $167,000 of amortization expense related to the intangible assets recorded during the fourth quarter of 2012 which stemmed from the acquisition of a less than lethal manufacturing facility during the fourth quarter of 2011. The acquisition is more fully described in the Company’s 2012 annual report on Form 10-K. Absorbent Products selling and general expenses decreased by $166,000, primarily reflecting a decrease in expenses classified as administrative that related to the royalty arrangement with the independent manufacturing facility mentioned above.

The above items were responsible for the change in operating profit.

Earnings before provision for income taxes decreased $4,185,000 from $14,751,000 to $10,566,000. The provision for income taxes decreased from $5,407,000 to $3,712,000, primarily reflecting a decrease in taxable earnings. Net earnings decreased $2,490,000 from $9,344,000 to $6,854,000, or 27%.

Liquidity and Capital Resources

Net cash provided by operating activities was $10,821,000 and $11,664,000 for the three months ended March 31, 2013 and April 1, 2012, respectively. The principal factors contributing to the decrease can be found in the changes in the components of working capital within the Consolidated Statements of Cash Flows. Of particular note during the first three months of 2013 were net earnings of $6,854,000; a decrease in accounts receivable levels stemming from cash collections on customer sales, partially offset by increases in inventory levels and deposits made with raw material suppliers included in other current assets; and a net decrease in payable and accrual levels. Of particular note during the first three months of 2012 were net earnings of $9,344,000; a decrease in accounts receivable levels stemming from cash collections on customer sales, partially offset by net decreases in payable and accrual levels.

Net cash used in investing activities was $5,211,000 during the first three months of 2013 compared to $256,000 provided by investing activities during the first three months of 2012. The change in investing activity cash flow is primarily attributable to a decrease in net maturities of marketable securities, and to a lesser extent, an increase in the acquisition of property, plant, and equipment.

Cash flows from financing activities for the first three months of 2013 and 2012 primarily differed as a result of an accelerated payment made in late December 2012 of the annual 2013 dividend. The acceleration was occasioned by the uncertainty over the federal income tax rates that would be in effect in 2013. In contrast, the annual 2012 dividend was made during the first quarter of 2012.

Working capital increased by $3,565,000 to $218,346,000 at March 31, 2013 for the reasons stated above. The Company’s current ratio was 5.2 to 1.0 at March 31, 2013 and 4.8 to 1.0 at December 31, 2012.

The Company expects to continue to evaluate acquisition opportunities that align with its business segments and continue to make capital investments in these segments as well as further acquisitions if the appropriate return on investment is projected.

The Company has substantial liquidity in the form of cash and short-term maturity marketable securities to meet all of its anticipated capital requirements, to make dividend payments, and to fund growth through acquisitions and other means. The bulk of its marketable securities are invested in the tax exempt variable rate demand notes described above and in municipal bonds that are pre-refunded with escrowed U.S. Treasuries. The Company intends to continue its investment strategy of safety and short-term liquidity throughout its investment holdings. Comparative yields during the first three months of 2013 were lower than those in the first three months of the preceding year, reflecting an increase in lower yielding instruments in the Company’s investment holdings as higher yielding instruments have matured and been replaced. The lower yields served to decrease interest income. The interest rate environment is a function of national and international monetary policies as well as the growth and inflation rates of the U.S. and foreign economies and is not controllable by the Company.

9

Critical Accounting Policies

The preparation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States requires management to make certain estimates and assumptions that affect the amount of reported assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and revenues and expenses during the periods reported. Actual results may differ from those estimates. The Company reviewed the development and selection of the critical accounting policies and believes the following are the most critical accounting policies that could have an effect on the Company’s reported results. These critical accounting policies and estimates have been reviewed with the Audit Committee of the Board of Directors.

Inventories

New Housewares/Small Appliance product introductions are an important part of the Company’s sales to offset the morbidity rate of other Housewares/Small Appliance products and/or the effect of lowered acceptance of seasonal products due to weather conditions. New products entail unusual risks and have occasionally in the past resulted in losses related to obsolete or excess inventory as a result of low or diminishing demand for a product. There were no such obsolescence issues that had a material effect during the periods presented, and accordingly, the Company did not record a reserve for obsolete product. In the future should product demand issues arise, the Company may incur losses related to the obsolescence of the related inventory. Inventory risk for the Company’s other segments is not deemed to be significant, as products are largely built pursuant to customers’ specific orders.

Self-Insured Product Liability and Health Insurance

The Company is subject to product liability claims in the normal course of business and is self-insured for health care costs, although it does carry stop loss and other insurance to cover claims once they reach a specified threshold. The Company’s insurance coverage varies from policy year to policy year, and there are typically limits on all types of insurance coverage, which also vary from policy year to policy year. Accordingly, the Company records an accrual for known claims and estimated incurred but not reported claims, including an estimate for related legal fees in the Company’s consolidated financial statements. The Company utilizes historical trends and other analysis to assist in determining the appropriate accrual. There are no known claims that would have a material adverse impact on the Company beyond the reserve levels that have been accrued and recorded on the Company’s books and records. An increase in the number or magnitude of claims could have a material impact on the Company’s financial condition and results of operations.

Sales and Returns

Sales are recorded net of discounts and returns. The latter pertain primarily to warranty returns, returns of seasonal items, and returns of those newly introduced products sold with a return privilege. The calculation of warranty returns is based in large part on historical data, while seasonal and new product returns are primarily developed using customer provided information.

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ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company’s interest income on cash equivalents and marketable securities is affected by changes in interest rates in the United States. Cash equivalents primarily consist of money market funds. Based on the accounting profession’s 2005 interpretation of cash equivalents under FASB ASC Topic 230, the Company’s seven-day variable rate demand notes are classified as marketable securities rather than as cash equivalents. The demand notes are highly liquid instruments with interest rates set every 7 days that can be tendered to the trustee or remarketer upon 7 days notice for payment of principal and accrued interest amounts. The 7-day tender feature of these variable rate demand notes is further supported by an irrevocable letter of credit from highly rated U.S. banks. To the extent a bond is not remarketed at par plus accrued interest, the difference is drawn from the bank’s letter of credit. The Company has had no issues tendering these notes to the trustees or remarketers. Other than a failure of a major U.S. bank, there are no risks of which the Company is aware that relate to these notes in the current market. The balance of the Company’s investments is held primarily in fixed and variable rate municipal bonds with a weighted average life of 1.7 years. Accordingly, the Company does not anticipate that future exposure to interest rate market risk will be material. The Company uses sensitivity analysis to determine its exposure to changes in interest rates.

The Company has no history of, and does not anticipate in the future, investing in derivative financial instruments. Most transactions with international customers are entered into in U.S. dollars, precluding the need for foreign currency cash flow hedges. As the majority of the Housewares/Small Appliance segment’s suppliers are located in China, periodic changes in the U.S. dollar and Chinese Renminbi (RMB) exchange rates do have an impact on that segment’s product costs. It is anticipated that any potential material impact from fluctuations in the exchange rate will be to the cost of products secured via purchase orders issued subsequent to the revaluation.

ITEM 4.  CONTROLS AND PROCEDURES

The Company’s management, including the Chief Executive Officer and Chief Financial Officer, have conducted an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Rule 13a-15 of the Securities Exchange Act of 1934 (the “1934 Act”) as of March 31, 2013. The Company’s Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures were effective as of that date.

There were no changes to internal controls over financial reporting during the quarter ended March 31, 2013 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

See Note G to the Consolidated Financial Statements set forth under Part I - Item 1 above.

ITEM 6.  EXHIBITS

Exhibit 3(i)	Restated Articles of Incorporation - incorporated by reference from Exhibit 3 (i) of the Company’s annual report on Form 10-K for the year ended December 31, 2005
Exhibit 3(ii)	By-Laws - incorporated by reference from Exhibit 3 (ii) of the Company’s current report on Form 8-K dated July 6, 2007
Exhibit 9.1	Voting Trust Agreement  - incorporated by reference from Exhibit 9 of the Company’s quarterly report on Form 10-Q for the quarter ended July 6, 1997
Exhibit 9.2	Voting Trust Agreement Amendment - incorporated by reference from Exhibit 9.2 of the Company’s annual report on Form 10-K for the year ended December 31, 2008
Exhibit 10.1	Incentive Compensation Plan - incorporated by reference from Exhibit 10.1 of the Company’s quarterly report on Form 10-Q for the quarter ended July 4, 2010
Exhibit 10.2	Form of Restricted Stock Award Agreement - incorporated by reference from Exhibit 10.2 of the Company’s quarterly report on Form 10-Q for the quarter ended July 4, 2010
Exhibit 31.1	Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Exhibit 31.2	Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Exhibit 32.1	Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Exhibit 32.2	Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Exhibit 101	The following financial information from National Presto Industries, Inc.’s Quarterly Report on Form 10-Q for the period ended March 31, 2013, formatted in eXtensible Business Reporting Language (XBRL): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Comprehensive Income, (iii) Condensed Consolidated Statements of Cash Flows, and (iv) Notes to Condensed Consolidated Financial Statements.*

*The XBRL related information in Exhibit 101 to this Quarterly Report on Form 10-Q shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section and shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.

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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 thereunto duly authorized.

NATIONAL PRESTO INDUSTRIES, INC.

/s/ Maryjo Cohen

Maryjo Cohen, Chair of the Board,
President, Chief Executive Officer
(Principal Executive Officer), Director

/s/ Randy F. Lieble

Randy F. Lieble, Director, Vice President,
Chief Financial Officer (Principal
Financial Officer), Treasurer

Date: May 10, 2013

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National Presto Industries, Inc.

Exhibit Index

Exhibit Number	Exhibit Description
31.1	Chief Executive Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Chief Financial Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Chief Executive Officer Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Chief Financial Officer Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following financial information from National Presto Industries, Inc.’s Quarterly Report on Form 10-Q for the period ended March 31, 2013, formatted in eXtensible Business Reporting Language (XBRL): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Comprehensive Income, (iii) Condensed Consolidated Statements of Cash Flows, and (iv) Notes to Condensed Consolidated Financial Statements.*

*The XBRL related information in Exhibit 101 to this Quarterly Report on Form 10-Q shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section and shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.

14

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Maryjo Cohen, certify that:

1.  I have reviewed this quarterly report on Form 10-Q of National Presto Industries, Inc.;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.  The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)  designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)  designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)  evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)  disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.  The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a)  all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)  any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 10, 2013	/s/ Maryjo Cohen
	Maryjo Cohen Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Randy Lieble, certify that:

1.  I have reviewed this quarterly report on Form 10-Q of National Presto Industries, Inc.;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.  The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)  designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)  designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)  evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)  disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.  The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a)  all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)  any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 10, 2013	/s/ Randy Lieble
	Randy Lieble Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. §1350 (as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002), I, the undersigned Chief Executive Officer of National Presto Industries, Inc. (the “Company”), hereby certify that the Quarterly Report on Form 10-Q of the Company for the quarterly period ended March 31, 2013 (the “Report”) fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the SEC or its staff upon request.

Date: May 10, 2013	/s/ Maryjo Cohen
	Maryjo Cohen Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. §1350 (as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002), I, the undersigned Chief Financial Officer of National Presto Industries, Inc. (the “Company”), hereby certify that the Quarterly Report on Form 10-Q of the Company for the quarterly period ended March 31, 2013 (the “Report”) fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the SEC or its staff upon request.

Date: May 10, 2013	/s/ Randy Lieble
	Randy Lieble Chief Financial Officer

XML

Business Segments

3 Months Ended

Mar. 31, 2013

Business Segments [Abstract]

Business Segments

NOTE D – BUSINESS SEGMENTS

In the following summary, operating profit represents earnings before other income, principally interest income and income taxes.  The Company's segments operate discretely from each other with no shared manufacturing facilities.  Costs associated with corporate activities (such as cash and marketable securities management) and the assets associated with such activities are included within the Housewares/Small Appliances segment for all periods presented.

				(in thousands)
	Housewares / Small Appliances		Defense Products		Absorbent Products		Total
Quarter ended March 31, 2013
External net sales	$	24,889	$	38,951	$	19,350	$	83,190
Gross profit		4,457		10,066		1,686		16,209
Operating profit		1,558		7,665		1,135		10,358
Total assets		188,776		108,200		59,955		356,931
Depreciation and amortization		282		681		1,318		2,281
Capital expenditures		114		1,583		4,072		5,769
Quarter ended April 1, 2012
External net sales	$	24,692	$	49,681	$	22,400	$	96,773
Gross profit		4,697		13,873		1,782		20,352
Operating profit		1,735		11,690		1,065		14,490
Total assets		183,219		122,723		67,718		373,660
Depreciation		266		801		1,367		2,434
Capital expenditures		248		21		4,224		4,493

XML

Earnings Per Share

3 Months Ended

Mar. 31, 2013

Earnings Per Share [Abstract]

Earnings Per Share

NOTE C – EARNINGS PER SHARE

Basic earnings per share is based on the weighted average number of common shares and participating securities outstanding during the period.  Diluted earnings per share also includes the dilutive effect of additional potential common shares issuable under the Company’s stock-based Incentive Compensation Plan, which are determined using the treasury stock method.  Unvested stock awards, which contain non-forfeitable rights to dividends whether paid or unpaid (“participating securities”), are included in the number of shares outstanding for both basic and diluted earnings per share calculations. 

XML

Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
CURRENT ASSETS:
Cash and cash equivalents	$ 43,047	$ 37,437
Marketable securities	55,043	55,586
Accounts receivable, net	50,529	76,443
Inventories:
Finished goods	37,805	33,851
Work in process	50,051	40,340
Raw materials	9,021	9,173
Total inventory	96,877	83,364
Deferred tax assets	8,906	8,906
Other current assets	15,853	9,018
Total current assets	270,255	270,754
PROPERTY, PLANT AND EQUIPMENT	129,164	123,418
Less allowance for depreciation	63,645	61,553
PROPERTY, PLANT AND EQUIPMENT, NET	65,519	61,865
GOODWILL & OTHER INTANGIBLES	17,555	17,722
NOTE RECEIVABLE	3,602	3,571
Total assets	356,931	353,912
CURRENT LIABILITIES:
Accounts payable	34,327	39,077
Federal and state income taxes	2,678	1,642
Accrued liabilities	14,904	15,254
Total current liabilities	51,909	55,973
DEFERRED INCOME TAXES	7,372	7,368
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Common stock, $1 par value: Authorized: 12,000,000 Issued: 7,440,518	7,441	7,441
Paid-in capital	4,620	4,472
Retained earnings	302,497	295,643
Accumulated other comprehensive income	61	53
Stockholders' Equity before Treasury Stock	314,619	307,609
Treasury stock, at cost	16,969	17,038
Total stockholders' equity	297,650	290,571
Total liabilities and stockholders' equity	$ 356,931	$ 353,912

XML

Basis Of Presentation

3 Months Ended

Mar. 31, 2013

Basis Of Presentation [Abstract]

Basis Of Presentation

NOTE A – BASIS OF PRESENTATION

The consolidated interim financial statements included herein are unaudited and have been prepared by the Company pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). In the opinion of management of the Company, the consolidated interim financial statements reflect all the adjustments which were of a normal recurring nature necessary for a fair presentation of the results of the interim periods.  The condensed consolidated balance sheet as of December 31, 2012 is summarized from consolidated financial statements, but does not include all the disclosures contained therein and should be read in conjunction with the 2012 Annual Report on Form 10-K.  Interim results for the period are not indicative of those for the year.

XML

Reclassifications

3 Months Ended

Mar. 31, 2013

Reclassifications [Abstract]

Reclassifications

NOTE B – RECLASSIFICATIONS

Certain reclassifications have been made to the prior periods’ financial statements to conform to the current period’s financial statement presentation.  These reclassifications did not affect net earnings or stockholders’ equity as previously reported.

XML

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2013	Dec. 31, 2012
Consolidated Balance Sheets [Abstract]
Common stock, par value	$ 1	$ 1
Common stock, shares authorized	12,000,000	12,000,000
Common stock, shares issued	7,440,518	7,440,518

XML

Cash, Cash Equivalents And Marketable Securities (Summary Of The Amortized Costs And Fair Values Of Marketable Securities) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
MARKETABLE SECURITIES, Amortized Cost	$ 54,948	$ 55,504
MARKETABLE SECURITIES, Fair Value	55,043	55,586
MARKETABLE SECURITIES, Gross Unrealized Gains	99	94
MARKETABLE SECURITIES, Gross Unrealized Losses	4	12
Tax-Exempt Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
MARKETABLE SECURITIES, Amortized Cost	22,688	24,412
MARKETABLE SECURITIES, Fair Value	22,783	24,494
MARKETABLE SECURITIES, Gross Unrealized Gains	99	94
MARKETABLE SECURITIES, Gross Unrealized Losses	4	12
Variable Rate Demand Notes [Member]
Schedule of Available-for-sale Securities [Line Items]
MARKETABLE SECURITIES, Amortized Cost	32,260	31,092
MARKETABLE SECURITIES, Fair Value	$ 32,260	$ 31,092

XML

Document And Entity Information	3 Months Ended
	Mar. 31, 2013	May 01, 2013
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2013
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2013
Entity Registrant Name	NATIONAL PRESTO INDUSTRIES INC
Entity Central Index Key	0000080172
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		6,896,366

XML

Consolidated Statements Of Comprehensive Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Consolidated Statements Of Comprehensive Income [Abstract]
Net sales	$ 83,190	$ 96,773
Cost of sales	66,981	76,421
Gross profit	16,209	20,352
Selling and general expenses	5,851	5,862
Operating profit	10,358	14,490
Other income	208	261
Earnings before provision for income taxes	10,566	14,751
Income tax provision	3,712	5,407
Net earnings	6,854	9,344
Weighted average common shares outstanding:
Basic	6,903	6,883
Diluted	6,906	6,885
Net earnings per share:
Basic	$ 0.99	$ 1.36
Diluted	$ 0.99	$ 1.36
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on available-for-sale securities	8	4
Comprehensive income	$ 6,862	$ 9,348
Cash dividends declared and paid per common share	$ 0.00	$ 6.00

XML

Commitments And Contingencies

3 Months Ended

Mar. 31, 2013

Commitments And Contingencies [Abstract]

Commitments And Contingencies

NOTE G – COMMITMENTS AND CONTINGENCIES

The Company is involved in largely routine litigation incidental to its business.  Management believes the ultimate outcome of the litigation will not have a material effect on the Company's consolidated financial position, liquidity, or results of operations.

XML

Cash, Cash Equivalents And Marketable Securities

3 Months Ended

Mar. 31, 2013

Cash, Cash Equivalents And Marketable Securities [Abstract]

Cash, Cash Equivalents And Marketable Securities

NOTE F - CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES 

The Company considers all highly liquid marketable securities with an original maturity of three months or less to be cash equivalents.  Cash equivalents include money market funds.  The Company deposits its cash in high quality financial institutions.  The balances, at times, may exceed federally insured limits.  Money market funds are reported at fair value determined using quoted prices in active markets for identical securities (Level 1, as defined by FASB ASC 820).

The Company has classified all marketable securities as available-for-sale which requires the securities to be reported at fair value, with unrealized gains and losses, net of tax, reported as a separate component of stockholders' equity.  Highly liquid, tax-exempt variable rate demand notes with put options exercisable in three months or less are classified as marketable securities.

At March 31, 2013 and December 31, 2012, cost for marketable securities was determined using the specific identification method.  A summary of the amortized costs and fair values of the Company’s marketable securities at the end of the periods presented is shown in the following table.  All of the Company’s marketable securities are classified as Level 2, as defined by FASB ASC 820, with fair values determined using significant other observable inputs, which include quoted prices in markets that are not active, quoted prices of similar securities, recently executed transactions, broker quotations, and other inputs that are observable.  There were no transfers into or out of Level 2 during the three months ended March 31, 2013.

(In Thousands)
	MARKETABLE SECURITIES
	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
March 31, 2013
Tax-exempt  Municipal Bonds	$	22,688	$	22,783	$	99	$	4
Variable Rate Demand Notes		32,260		32,260		-		-
Total Marketable Securities	$	54,948	$	55,043	$	99	$	4
December 31, 2012
Tax-exempt  Municipal Bonds	$	24,412	$	24,494	$	94	$	12
Variable Rate Demand Notes		31,092		31,092		-		-
Total Marketable Securities	$	55,504	$	55,586	$	94	$	12

Proceeds from maturities and sales of available-for-sale securities totaled $2,264,000 and $6,372,000 for the three month periods ended March 31, 2013 and April 1, 2012.  There were no gross gains or losses related to sales of marketable securities during the same periods.  Net unrealized gains included in other comprehensive income, were $12,000 and $5,000 before taxes for the three month periods ended March 31, 2013 and April 1, 2012, respectively.  No unrealized gains or losses were reclassified out of accumulated other comprehensive income during the same periods.

The contractual maturities of the marketable securities held at March 31, 2013 are as follows: $5,292,000 within one year; $24,360,000 beyond one year to five years; $8,519,000 beyond five years to ten years, and $16,872,000 beyond ten years. All of the instruments in the beyond five year ranges are variable rate demand notes which can be tendered for cash at par plus interest within seven days.  Despite the stated contractual maturity date, to the extent a tender is not honored, the notes become immediately due and payable.

XML

Business Segments (Schedule Of Segment Information) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012	Dec. 31, 2012
Segment Reporting Information [Line Items]
External net sales	$ 83,190	$ 96,773
Gross profit	16,209	20,352
Operating profit	10,358	14,490
Total assets	356,931	373,660	353,912
Depreciation and amortization	2,281	2,434
Capital expenditures	5,769	4,493
Housewares/ Small Appliances [Member]
Segment Reporting Information [Line Items]
External net sales	24,889	24,692
Gross profit	4,457	4,697
Operating profit	1,558	1,735
Total assets	188,776	183,219
Depreciation and amortization	282	266
Capital expenditures	114	248
Defense Products [Member]
Segment Reporting Information [Line Items]
External net sales	38,951	49,681
Gross profit	10,066	13,873
Operating profit	7,665	11,690
Total assets	108,200	122,723
Depreciation and amortization	681	801
Capital expenditures	1,583	21
Absorbent Products [Member]
Segment Reporting Information [Line Items]
External net sales	19,350	22,400
Gross profit	1,686	1,782
Operating profit	1,135	1,065
Total assets	59,955	67,718
Depreciation and amortization	1,318	1,367
Capital expenditures	$ 4,072	$ 4,224

XML

Business Segments (Tables)

3 Months Ended

Mar. 31, 2013

Business Segments [Abstract]

Summary Of Business Segments Information

				(in thousands)
	Housewares / Small Appliances		Defense Products		Absorbent Products		Total
Quarter ended March 31, 2013
External net sales	$	24,889	$	38,951	$	19,350	$	83,190
Gross profit		4,457		10,066		1,686		16,209
Operating profit		1,558		7,665		1,135		10,358
Total assets		188,776		108,200		59,955		356,931
Depreciation and amortization		282		681		1,318		2,281
Capital expenditures		114		1,583		4,072		5,769
Quarter ended April 1, 2012
External net sales	$	24,692	$	49,681	$	22,400	$	96,773
Gross profit		4,697		13,873		1,782		20,352
Operating profit		1,735		11,690		1,065		14,490
Total assets		183,219		122,723		67,718		373,660
Depreciation		266		801		1,367		2,434
Capital expenditures		248		21		4,224		4,493

XML

Cash, Cash Equivalents And Marketable Securities (Tables)

3 Months Ended

Mar. 31, 2013

Cash, Cash Equivalents And Marketable Securities [Abstract]

Summary Of The Amortized Costs And Fair Values Of Marketable Securities

(In Thousands)
	MARKETABLE SECURITIES
	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
March 31, 2013
Tax-exempt  Municipal Bonds	$	22,688	$	22,783	$	99	$	4
Variable Rate Demand Notes		32,260		32,260		-		-
Total Marketable Securities	$	54,948	$	55,043	$	99	$	4
December 31, 2012
Tax-exempt  Municipal Bonds	$	24,412	$	24,494	$	94	$	12
Variable Rate Demand Notes		31,092		31,092		-		-
Total Marketable Securities	$	55,504	$	55,586	$	94	$	12

XML

Cash, Cash Equivalents And Marketable Securities (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Transfers into Level 2	$ 0
Transfers out of Level 2	0
Proceeds from sales of available-for-sale securities	2,264,000	6,372,000
Gross gains or losses related to sales of marketable securities	0	0
Net unrealized losses included in accumulated other comprehensive income, before taxes	12,000	5,000
Contractual maturities of marketable securities within 1 year	5,292,000
Contractual maturities of marketable securities, years 2-5	24,360,000
Contractual maturities of marketable securities, years 6-10	8,519,000
Contractual maturities of marketable securities, after 10 years	16,872,000
Marketable securities liquidation period	7 days
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Reclassification out of AOCI	$ 0	$ 0

XML

Consolidated Statements Of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Apr. 01, 2012
Cash flows from operating activities:
Net earnings	$ 6,854	$ 9,344
Adjustments to reconcile net earnings to net cash provided by operating activities:
Provision for depreciation	2,114	2,434
Intangibles amortization	167
Provision for doubtful accounts	56	100
Other	109	292
Changes in:
Accounts receivable	25,914	7,004
Inventories	(13,513)	(812)
Other current assets	(6,835)	(11)
Accounts payable and accrued liabilities	(5,088)	(9,829)
Federal and state income taxes	1,043	3,142
Net cash provided by operating activities	10,821	11,664
Cash flows from investing activities:
Marketable securities purchased	(1,709)	(1,623)
Marketable securities - maturities and sales	2,264	6,372
Acquisition of property, plant and equipment	(5,769)	(4,493)
Sale of property, plant and equipment	3
Net cash provided by (used in) investing activities	(5,211)	256
Cash flows from financing activities:
Dividends paid		(41,292)
Other		357
Net cash used in financing activities		(40,935)
Net increase (decrease) in cash and cash equivalents	5,610	(29,015)
Cash and cash equivalents at beginning of period	37,437	73,995
Cash and cash equivalents at end of period	$ 43,047	$ 44,980

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Fair Value Of Financial Instruments

3 Months Ended

Mar. 31, 2013

Fair Value Of Financial Instruments [Abstract]

Fair Value Of Financial Instruments

NOTE E - FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company utilizes the methods of fair value as described in Financial Accounting Standard Board (“FASB”) Accounting Standard Codification (“ASC”) 820, Fair Value Measurements and Disclosures, to value its financial assets and liabilities. ASC 820 utilizes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

The carrying amount for cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximates fair value due to the immediate or short-term maturity of these financial instruments.