-----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, WCAkxyfKD+umM8cWrMJnk119PGwbP+wkxHvArBAW1tUvByD6H5lY0vkZfqK1PFnU RWzN1cCq7m73kqgCevrydg== 0000897101-98-000320.txt : 19980327 0000897101-98-000320.hdr.sgml : 19980327 ACCESSION NUMBER: 0000897101-98-000320 CONFORMED SUBMISSION TYPE: 10-K405 PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980326 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: NATIONAL PRESTO INDUSTRIES INC CENTRAL INDEX KEY: 0000080172 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC HOUSEWARES & FANS [3634] IRS NUMBER: 390494170 STATE OF INCORPORATION: WI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K405 SEC ACT: SEC FILE NUMBER: 001-02451 FILM NUMBER: 98574026 BUSINESS ADDRESS: STREET 1: 3925 N HASTINGS WAY CITY: EAU CLAIRE STATE: WI ZIP: 54703 BUSINESS PHONE: 7158392121 MAIL ADDRESS: STREET 1: 3925 N HASTINGS WAY CITY: EAU CLAIRE STATE: WI ZIP: 54703 FORMER COMPANY: FORMER CONFORMED NAME: NATIONAL PRESSURE COOKER CO DATE OF NAME CHANGE: 19710509 10-K405 1 SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 1997 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 (IRS Employer incorporation or organization) Identification Number) 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 Securities registered pursuant to Section 12(b) of the Act: Name of each exchange on Title of each class which registered $1.00 par value common stock New York Stock Exchange Securities registered pursuant to Section 12 (g) of the Act: NONE 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 _X__ No ____ Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to the Form 10-K. _X__ The aggregate market value of the voting stock held by non-affiliates of the registrant computed by reference to the price at which the stock was sold, or the average bid and asked prices of such stock, as of February 27, 1998, was $279,516,348. The number of shares outstanding of each of the registrant's classes of common stock, as of February 27, 1998, was 7,354,981. DOCUMENTS INCORPORATED BY REFERENCE The following documents are incorporated by reference into that part of this Form 10-K designated to the right of the document title. TITLE PART Proxy Statement dated April 3, 1998 Part III Except as specifically incorporated herein by reference, the foregoing Proxy Statement is not deemed filed as part of this report. PART I ITEM 1. BUSINESS A. DESCRIPTION OF BUSINESS The business of National Presto Industries, Inc., and its consolidated subsidiaries (the "Company") consists of a single business category. Comments on individual portions of that category follow. 1. COMMERCIAL The Company manufactures and distributes small electrical appliances and housewares, including comfort appliances, pressure cookers and canners, private label and premium sales products. Electrical appliances and housewares sold by the Company include pressure cookers and canners; the Presto(R) Control Master(R) single thermostatic control line of fry pans in several sizes, griddles and combination griddle/warmers and multi-purpose cookers; deep fryers of various sizes; can openers, slicer/shredders, slicer/shredder/mixers; electric heaters; corn poppers (hot air and microwave); microwave bacon cookers; electronic toasters; coffeemakers; electric grills; electric tea kettles; electric knives; bread slicing systems; electric knife sharpeners; and timers. Pressure cookers and canners are available in various sizes and are fabricated of aluminum and, in the case of cookers, of stainless steel. The Company believes it is one of the principal manufacturers of pressure cookers in the United States. For the year ended December 31, 1997, approximately 56% of consolidated net sales were provided by cast products (fry pans, griddles, deep fryers and electric multi-cookers), approximately 15% by motorized nonthermal appliances (can openers, slicer/shredders, knife sharpeners, electric knives, and bread slicing systems), and approximately 25% by noncast/thermal appliances (stamped cookers and canners, stainless steel cookers, electronic toasters, corn poppers (hot air and microwave), coffeemakers, microwave bacon cookers, tea kettles, and heaters). For the year ended December 31, 1996, approximately 52% of consolidated net sales were provided by cast products, approximately 15% by motorized nonthermal appliances and approximately 28% by noncast/thermal appliances. For the year ended December 31, 1995, approximately 45% of consolidated net sales were provided by cast products, approximately 22% by motorized nonthermal appliances and approximately 29% by noncast/thermal appliances. Wal-Mart Stores, Inc., accounted for 43%, 38% and 36% of consolidated net sales for the years ended December 31, 1997, 1996 and 1995. Products are sold directly to retailers throughout the United States and also through independent distributors. Although the Company has long established relationships with many of its customers, it does not have long-term supply contracts with them. The loss of, or material reduction in, business from any of the Company's major customers could adversely affect the Company's business. The Company has a sales force of approximately eleven employees that sells to and services customers. In selected geographic areas sales are handled by manufacturers' representatives who may handle other product lines. Sales promotional activities include television, radio and newspaper. The Company's commercial business is highly competitive and seasonal, with the normal peak sales period occurring in the fourth quarter of the year prior to the holiday season. Many companies compete for sales of housewares and small appliances, some of which are larger than the Company and others which are smaller. Product competition extends to special product features, product pricing, marketing programs, warranty provisions, service policies and other factors. New product introductions are an important part of the Company's sales to offset the morbidity rate of other products and/or the effect of lowered acceptance of seasonal products due to weather conditions. New products entail unusual risks. Engineering and tooling costs are increasingly expensive, as are components and finished goods that may not have a ready market or achieve widespread consumer acceptance. High-cost advertising commitments accompanying such new products or to maintain sales of existing products may not be fully absorbed by ultimate product sales. Initial production schedules, set in advance of introduction, carry the possibility of excess unsold inventories. New product introductions are further subject to delivery delays from supply sources, which can impact availability for the Company's most active selling periods. Research and development costs related to new product development for the years 1997, 1996 and 1995 were absorbed in operations for these years and were not a material element in the aggregate costs incurred by the Company. Company products are generally warranted to the original owner to be free from defects in material and workmanship for a period of two years from date of purchase. The Company allows a sixty-day over-the-counter initial return privilege through cooperating dealers. The Company services its products through independent service stations throughout the United States and the corporate service repair operation. The Company's service and warranty programs are competitive with those offered by other manufacturers in the industry. The Company's commercial products are manufactured in plants located at Jackson, Mississippi and Alamogordo, New Mexico. The Company also purchases a portion (18% in 1997) of its products from nonaffiliated companies in the Pacific Rim countries. 2. DEFENSE The Company commenced defense production in 1942. From 1966 through 1980, 105MM projectiles were produced in the Eau Claire facility (utilizing Government owned equipment in Company owned buildings). Production of 8" projectiles also occurred intermittently during this period. Since completion of production in 1980, standby contracts had been received and renewed on an annual basis through September, 1992. For the period October, 1992 through September, 1993 a storage only contract was received. In September, 1993, the Department of the Army exercised its option of abandoning, in place, the production equipment formerly utilized for projectile fabrication. This equipment has been sold, a portion of the facility has been restored and is being leased for manufacturing purposes, and work is continuing to restore the balance of the plant for manufacturing, or other purposes. See Section B3 for comments regarding Defense related Environmental Protection Agency matters. 3. WAREHOUSING AND TRANSPORTATION SERVICES For a number of years, the Company has warehoused and distributed its commercial products from a centrally located distribution center. Selective use is made of leased tractors and trailers with backhauls scheduled on return trips carrying goods consigned for internal corporate use. 4. FINANCIAL MANAGEMENT A separate subsidiary of the Company, a Delaware holding company, is responsible for the management of funds not currently required for business activities and, therefore, temporarily available for investments. (See Footnote B(3) in the Notes to Consolidated Financial Statements.) Income from financial management activities is included in Other Income in the accompanying financial statements. Earnings for this subsidiary may vary significantly from year to year depending on interest yields on instruments meeting the Company's investment criteria, and the extent to which funds may be needed for internal growth and newly identified business activities. B. OTHER COMMENTS 1. Sources and Availability of Materials Production levels at commercial plants may be affected by vendor failure to deliver tooling, material and critical parts within commitments. While recent years have witnessed virtual elimination of these circumstances, there is no assurance against recurrence. Deliveries of new products, many of which have been sourced overseas, could be delayed by labor or supply problems at vendors or in transportation. As a consequence, these products may not be available in sufficient quantities during the prime selling period. While there has been no major incidence of such problems recently and the Company has made every reasonable effort to prevent occurrence, there is no assurance that such effort will be totally effective. 2. Trademarks, Licenses, Franchises and Concessions Held In recent years, patents on new products have become more meaningful to operating results. Trademarks and know-how are considered significant. The Company's current and future success depends upon judicial protection of its intellectual property rights ( patents, trademarks and trade dress). Removal of that protection would expose the Company to competitors who seek to take advantage of the Company's innovations and proprietary rights. To date, the Company has vigorously protected its rights and enjoyed success in all its intellectual property suits. 3. Effects of Compliance with Environmental and OSHA Regulations In May 1986, the Company's Eau Claire, Wisconsin, site was placed on the United States Environmental Protection Agency's (EPA) National Priorities List (NPL) under the Comprehensive Environmental Reponse, Compensation and Liability Act of 1980 (CERCLA) because of alleged hazardous waste deposited on the property. During July 1986, the Company entered into an agreement with the EPA and the Wisconsin Department of Natural Resources to conduct a remedial investigation and feasibility study at the site. The remedial investigation was completed in 1992, the feasibility study in 1994, and in May 1996 the final record of decision (ROD) was issued for the site by the EPA. Some remedial activities have already been completed, some previously initiated are continuing, and others are in the early stages of implementation. In February 1988, the Company entered into an agreement with the Department of the Army (the 1988 Agreement), pursuant to which the Army agreed to fund environmental restoration activities related to the site. As a result of the 1988 Agreement, a total of $27,000,000 has been appropriated for environmental matters. Based on information known to the Company as of December 31, 1997, it is believed that the funds appropriated to date will be adequate to satisfy remaining investigation and restoration activities; however, should environmental agencies require additional studies or remediation activities beyond what is now contemplated, it is possible that existing funds could be inadequate. Management believes that in the absence of any unforeseen future developments, these environmental matters will not have any material adverse effect on the results of operations or financial condition of the Company. 4. Number of Employees of the Company As of December 31, 1997, the Company had 577 employees. 5. Industry Practices Related to Working Capital Requirements The major portion of the Company's commercial sales were made with terms of 90 days or shorter. A small portion of the sales were made with seasonal dating provisions. Inventory levels increase in advance of the selling period for products that are seasonal, such as pressure canners, heaters, and in preparation for new product introductions. Inventory build-up also occurs to create stock levels required to support the higher sales that occur in the latter half of each year. With the buying practices of the Company's customers moving away from substantial advance stocking orders to smaller, more frequent orders, the Company is required to carry larger finished goods inventories than previously maintained. The Company purchases components and raw materials in advance of production requirements where such purchases are required to ensure supply or provide advantageous long-term pricing. 6. Backlog Shipment of most of the Company's commercial products occurs within a relatively short time after receipt of the order and, therefore, there is usually no substantial order backlog. New product introductions do result in order backlogs that vary from product to product and as to timing of introduction. C. INDUSTRY SEGMENTS The Company operates in one business segment. ITEM 2.PROPERTIES (Owned Except Where Indicated) The Company's Eau Claire facility is approximately 560,000 square feet, of which 428,000 square feet was dedicated to ordnance activities prior to September 1993. Leases for 145,000 square feet of this area have been entered into with outside tenants. The Company's corporate office is also located in Eau Claire. The Company manufactures consumer products in Jackson, Mississippi and Alamogordo, New Mexico. The Jackson plant contains 283,000 square feet, of which 119,600 square feet is used for warehousing. The facility at Alamogordo contains 163,200 square feet, of which 24,800 square feet is used for warehousing. The Company has a 162,400 square foot building at Canton, Mississippi which is used primarily for warehousing and distribution and some activities for product service functions. An additional 24,000 square feet has been leased in adjacent buildings for storage area. During peak season, an additional 80,000 square feet has been leased. ITEM 3.LEGAL PROCEEDINGS The Company is subject to various legal actions incidental to its normal business operations. In the opinion of management such actions will be resolved for amounts that in the aggregate will not be material to the results of operations or financial condition of the Company. See Item 1.B.3. for information regarding certain environmental matters. ITEM 4.SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS None EXECUTIVE OFFICERS OF THE REGISTRANT The following information is provided with regard to the executive officers of the registrant: (All terms of office are for one year or until their respective successors are duly elected and qualified.)
FAMILY NAME TITLE AGE RELATIONSHIP -------------------------------------------------------------------------------------------------------- Melvin S. Cohen Chairman of the Board 80 Father of Maryjo Cohen Maryjo Cohen President and Chief Executive 45 Daughter of Officer Melvin S. Cohen Richard F. Anderl Vice-President, Engineering 54 None Neil L. Brown Vice President, Manufacturing 54 None Donald E. Hoeschen Vice-President, Sales 50 None James F. Bartl Secretary 57 None Randy F. Lieble Treasurer 44 None
Mr. Cohen was elected Chairman of the Board in May 1975. Prior to that date he was President, a position that he again held from November 1986 to May 1989. Ms. Cohen was elected Treasurer in September 1983, to the additional positions of Vice-President in May 1986, President in May 1989 and Chief Executive Officer in May 1994. She has been associated with the registrant since 1976. Prior to becoming an officer, she was Associate Resident Counsel and Assistant to the Treasurer. Mr. Anderl was elected Vice-President in May 1989. He has been associated with the registrant since 1963 and prior to becoming an officer, he was Director of Engineering. Mr. Brown was elected Vice-President in November 1997. He has been associated with the registrant since 1966. Prior to becoming an officer, he was Director of Manufacturing. Mr. Hoeschen was elected Vice President in May 1997. He has been associated with the registrant since 1971. Prior to becoming an officer, he was Director of Sales. Mr. Bartl was elected Secretary in May 1978. He has been associated with the registrant since 1969. Prior to becoming an officer, he was Resident Counsel and Director of Industrial Relations, positions he continues to hold. Mr. Lieble was elected Treasurer in November 1995. He has been associated with the registrant since 1977. Prior to becoming an officer, he was Manager of Investments and Government Contracts. PART II ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
Record of Dividends Paid and Market Price of Common Stock 1997 Fiscal Year 1996 Fiscal Year --------------------------------------------------------------------------------------- Applicable Market Price Applicable Market Price Dividends Paid Dividends Paid per Share High Low per Share High Low ------------------------------------- ------------------------------------------ First Quarter $2.00 $40 1/2 $35 7/8 $2.00 $44 $39 5/8 Second Quarter - 40 3/8 35 7/8 - 42 38 Third Quarter - 43 36 3/4 - 39 1/2 36 1/4 Fourth Quarter - 44 3/16 36 1/2 - 38 7/8 36 1/2 ------------------------------------- ------------------------------------------ Full Year $2.00 $44 3/16 $35 7/8 $2.00 $44 $36 1/4
Common stock of National Presto Industries, Inc., is traded on the New York Stock Exchange under the symbol NPK. As of December 31, 1997, there were 953 stockholders of record. There were 940 stockholders of record as of February 27, 1998, the latest practicable date. ITEM 6. SELECTED FINANCIAL DATA (In thousands except per share data)
For the years ended December 31, 1997 1996 1995 1994 1993 -------- -------- -------- -------- -------- Net sales $109,540 $106,008 $120,172 $128,070 $118,580 Net earnings 16,982 14,720 18,969 21,455 18,655 Net earnings per share - Diluted 2.31 2.00 2.61 2.92 2.55 Total assets 291,870 285,385 284,927 291,036 283,004 Long-term debt -- -- -- 5,103 5,103 -------- -------- -------- -------- -------- Dividends paid per common share Applicable to current year 2.00 2.00 2.15 1.90 *
* The 1993 dividend was paid on December 28, 1992. ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION 1997 COMPARED TO 1996 Net sales increased by $3,532,000 from $106,008,000 to $109,540,000 due to increased unit volume primarily as a result of new product introductions. Gross margins for 1997 increased $1,886,000 from $33,621,000 to $35,507,000 due to the volume increase. As a percentage of sales, gross margins were 32% in both years. Selling and general expenses were relatively unchanged. Other income, principally interest, increased from the 1996 level primarily as a result of a higher rate of return on a higher level of invested funds in the Company's portfolio of short-term marketable securities. Both years were favorably impacted by litigation judgments/settlements of a nonrecurring nature. Earnings before provision for income taxes increased $2,816,000 from $19,174,000 to $21,990,000. The provision for income taxes increased from $4,454,000 to $5,008,000 as a result of increased earnings subject to tax. The effective income tax rate was 23% in both years. Net earnings increased $2,262,000 from $14,720,000 to $16,982,000, or 15%. National Presto Industries, Inc. has studied its computer software and hardware to determine its exposure to the Century date problem. The year 2000 date problem consists of a date format shortcoming where the year is represented by only two digits causing programs that perform arithmetic operations, comparisons, or sorting of date fields to yield incorrect results. The work to correct the year 2000 problem began in 1997 and is expected to be completed in 12 to 16 months. The cost, which is considered immaterial, will be directly reflected in the Statement of Earnings as incurred. The Company maintains adequate liquidity for all of its anticipated capital requirements and dividend payments. As of year-end 1997, there were no material capital commitments outstanding. Forward looking statements in this Annual Report 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 above. Investors are cautioned that all forward looking statements involve risks and uncertainty. In addition to the factors discussed above, 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; competitive pressure on sales and pricing, and increases in material or production cost which cannot be recouped in product pricing. Additional information concerning those and other factors is contained in the Company's Securities and Exchange Commission filings, including but not limited to the Form 10-K, copies of which are available from the Company without charge. ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION (Continued) 1996 COMPARED TO 1995 Net sales decreased by $14,164,000 from $120,172,000 to $106,008,000, primarily due to a unit volume decrease. Gross profit for 1996 decreased by $9,175,000 from $42,796,000 to $33,621,000 due primarily to the volume reduction and a less favorable product mix. See footnote C to the consolidated financial statements for information on LIFO valuing of inventories and its impact on cost of sales. Gross margins as a percentage of sales were 32% versus 36% in 1996 and 1995. Selling and general expenses decreased $4,384,000 largely due to decreased advertising expenses. As a percentage of net sales, selling and general expenses decreased from 23% to 22%. Other income, principally interest, decreased from the 1995 level primarily as a result of a lower rate of return on the Company's portfolio of short-term marketable securities. The other, principally litigation judgment in 1996 was income from concluded legal matters and 1995, was the result of a non-operational receipt of $2.85 million in damages and interest resulting from the Federal Circuit Court of Appeals decision that Black & Decker infringed Presto's patent on its SaladShooter(R) electric slicer/shredder. It was offset in part by the cost of retiring a Convertible Debenture. Earnings before provision for income taxes decreased $6,229,000 from $25,403,000 to $19,174,000. The provision for income taxes decreased from $6,434,000 to $4,454,000, which resulted in an effective income tax rate decrease from 25% to 23%, as a result of decreased earnings subject to tax. Net earnings decreased $4,249,000 from $18,969,000 to $14,720,000, or 22%. ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA A. The consolidated financial statements of National Presto Industries, Inc. and its subsidiaries and the related Report of Independent Certified Public Accountants are contained on pages F-1 through F-11 of this report. B. Quarterly financial data is contained in Note L in Notes to Consolidated Financial Statements. ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None PART III ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT A listing of the Executive Officers of the Registrant is included in Part I. See Note following Item 13 for information relating to Directors of the Company. ITEM 11. EXECUTIVE COMPENSATION See Note following Item 13. ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT See Note following Item 13. ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS See Note following. NOTE: Within 120 days after the close of the registrant's fiscal year ended December 31, 1997, the registrant intends to file a definitive proxy statement pursuant to regulation 14A. Pursuant to the Rules and Regulations of the Securities Exchange Act of 1934, the information required for Items 10, 11, 12 and 13 has been omitted and is incorporated herein from the Proxy by reference. PART IV ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K A. The following consolidated financial statements of National Presto Industries, Inc., and its subsidiaries and the related Report of Independent Certified Public Accountants are included in this report:
Form 10-K Page Reference -------------- 1. Consolidated Balance Sheets - December 31, 1997 and 1996 F-1 & F-2 2. Consolidated Statements of Earnings - Years ended December 31, 1997, 1996 and 1995 F-3 3. Consolidated Statements of Cash Flows - Years ended December 31, 1997, 1996 and 1995 F-4 4. Consolidated Statements of Stockholders' Equity - Years ended December 31, 1997, 1996 and 1995 F-5 5. Notes to Consolidated Financial Statements F-6 thru F-10 6. Report of Independent Certified Public Accountants F-11 B. The following Schedules and Exhibits are included in this report: Schedule II - Valuation and Qualifying Accounts F-12 Exhibit 3(i) - Restated Articles of Incorporation - incorporated by reference from Exhibit 3 (i) of the Company's quarterly report on Form 10-Q for the quarter ended July 6, 1997 (ii) - By-Laws - incorporated by reference from Exhibit 3 (ii) of the Company's quarterly report on Form 10-Q for the quarter ended July 6, 1997 Exhibit 9 - 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 10.1 - 1988 Stock Option Plan - incorporated by reference from Exhibit 10.1 of the Company's quarterly report on Form 10-Q for the quarter ended July 6, 1997 Exhibit 10.2 - Form of Incentive Stock Option Agreement under the 1988 Stock Option Plan - Incorporated by reference from Exhibit 10.2 of the Company's quarterly report on Form 10-Q for the quarter ended July 6, 1997 Exhibit 11 - Statement Re Computation of Per Share Earnings F-13 Exhibit 21 - Parent and Subsidiaries F-14 Exhibit 23.1 - Consent of Grant Thornton LLP F-15 Exhibit 27 - Financial Data Schedule F-16
All other Schedules and Exhibits for which provision is made in the applicable accounting regulations of the Securities and Exchange Commission are not required under the related instructions or are inapplicable, and therefore have been omitted. Columns omitted from schedules filed have been omitted because the information is not applicable. SIGNATURE Pursuant to the Requirements of Section 13 or 14 (d) 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. -------------------------------- (registrant) By: /S/Randy F. Lieble --------------------------- Randy F. Lieble Treasurer (Principal Accounting Officer) By: /S/ Walter G. Ryberg By: /S/ Melvin S. Cohen --------------------------- --------------------------- Walter G. Ryberg Melvin S. Cohen Director Chairman of the Board By: /S/ John M. Sirianni By: /S/ James F. Bartl --------------------------- --------------------------- John M. Sirianni James F. Bartl Director Secretary and Director By: /S/ Michael J. O'Meara By: /S/ Maryjo Cohen --------------------------- --------------------------- Michael J. O'Meara Maryjo Cohen Director President and Chief Executive Officer and Director Date: March 25, 1998
NATIONAL PRESTO INDUSTRIES, INC. CONSOLIDATED BALANCE SHEETS (Dollars in thousands) DECEMBER 31, 1997 DECEMBER 31, 1996 - ------------------------------------------------------------------------------------------------------------------------ ASSETS CURRENT ASSETS: Cash and cash equivalents $ 91,639 $ 91,878 Marketable securities 140,651 136,159 Accounts receivable $ 20,692 $22,276 Less allowance for doubtful accounts 450 20,242 450 21,826 -------- ------- Inventories: Finished goods 9,058 8,470 Work in process 1,675 1,744 Raw materials 6,900 6,661 Supplies 1,000 18,633 945 17,820 -------- ------- Prepaid expenses 918 888 --------- -------- Total current assets 272,083 268,571 PROPERTY, PLANT AND EQUIPMENT: Land and land improvements 172 146 Buildings 6,796 6,736 Machinery and equipment 13,040 10,374 -------- ------- 20,008 17,256 Less allowance for depreciation 11,002 9,006 9,911 7,345 -------- ------- OTHER ASSETS 10,781 9,469 --------- -------- $ 291,870 $285,385 ========= ========
The accompanying notes are an integral part of the financial statements.
NATIONAL PRESTO INDUSTRIES, INC. CONSOLIDATED BALANCE SHEETS (Dollars in thousands) DECEMBER 31, 1997 DECEMBER 31, 1996 - ------------------------------------------------------------------------------------------------------------------------ LIABILITIES CURRENT LIABILITIES: Accounts payable $ 15,958 $ 13,262 Federal and state income taxes 4,923 4,887 Accrued liabilities 21,791 20,387 --------- -------- Total current liabilities 42,672 38,536 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 925 903 Retained earnings 243,092 240,815 ------- ------- 251,458 249,159 Treasury stock, at cost, 85,537 shares in 1997 and 87,447 shares in 1996 2,260 2,310 ------- ------- Total stockholders' equity 249,198 246,849 --------- -------- $ 291,870 $285,385 ========= ========
The accompanying notes are an integral part of the financial statements.
NATIONAL PRESTO INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF EARNINGS (In thousands except per share data) For the years ended December 31, 1997 1996 1995 - -------------------------------------------------------------------------------------------------- Gross sales $ 111,423 $ 107,878 $ 122,378 Less freight, discounts, etc 1,883 1,870 2,206 -------------------------------------- Net sales 109,540 106,008 120,172 Cost of sales 73,999 72,387 77,376 -------------------------------------- Gross profit 35,541 33,621 42,796 Selling and general expenses 23,337 23,263 27,647 -------------------------------------- Operating profit 12,204 10,358 15,149 Other income, principally interest 9,244 8,340 8,625 Other, principally litigation judgments 550 476 2,316 Interest expense (8) -- (687) -------------------------------------- Earnings before provision for income taxes 21,990 19,174 25,403 Provision for income taxes 5,008 4,454 6,434 -------------------------------------- Net earnings $ 16,982 $ 14,720 $ 18,969 ====================================== Weighted average shares outstanding: Basic 7,354 7,352 7,344 ====================================== Diluted 7,355 7,353 7,345 ====================================== Net earnings per share: Basic $ 2.31 $ 2.00 $ 2.58 ====================================== Diluted $ 2.31 $ 2.00 $ 2.61 ======================================
The accompanying notes are an integral part of the financial statements.
NATIONAL PRESTO INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands) For the years ended December 31, 1997 1996 1995 - ------------------------------------------------------------------------------------------------------------------------- Cash flows from operating activities: Net earnings $ 16,982 $ 14,720 $ 18,969 Adjustments to reconcile net earnings to net cash provided by operating activities: Provision for depreciation 2,051 1,967 1,485 Deferred income taxes (1,143) (1,772) (505) Stock compensation expense 72 85 81 Call option on early retirement of debt -- -- 534 Changes in: Accounts receivable 1,584 16,290 (1,181) Inventories (813) 7,785 (6,740) Prepaid expenses (30) 865 (841) Accounts payable and accrued liabilities 4,100 687 (2,165) Federal and state income taxes 36 (337) (2,643) --------------------------------------- Net cash provided by operating activities 22,839 40,290 6,994 --------------------------------------- Cash flows from investing activities: Marketable securities purchased (183,921) (117,868) (98,921) Marketable securities - maturities and sales 179,429 94,292 99,092 Acquisition of property, plant and equipment (4,021) (2,003) (4,456) Changes in other assets 140 416 180 --------------------------------------- Net cash used in investing activities (8,373) (25,163) (4,105) --------------------------------------- Cash flows from financing activities: Payment of long-term debt -- -- (5,103) Dividends paid (14,705) (14,702) (15,776) Other -- 5 (6) --------------------------------------- Net cash used in financing activities (14,705) (14,697) (20,885) --------------------------------------- Net increase (decrease) in cash and cash equivalents (239) 430 (17,996) Cash and cash equivalents at beginning of year 91,878 91,448 109,444 --------------------------------------- Cash and cash equivalents at end of year $ 91,639 $ 91,878 $ 91,448 ======================================= Supplemental disclosures of cash flow information: Cash paid during the year for: Interest $ 8 $ 1 $ 727 Income taxes $ 6,103 $ 6,565 $ 9,526
The accompanying notes are an integral part of the financial statements.
NATIONAL PRESTO INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (In thousands except per share data) For the years ended December 31, 1997, 1996, 1995 - ------------------------------------------------------------------------------------------------------------------------------------ Common Paid-in Retained Treasury Stock Capital Earnings Stock Total ----- ------- -------- ----- ----- Balance January 1, 1995 $ 7,441 $590 $ 237,604 $(2,696) $ 242,939 Net earnings - - 18,969 - 18,969 Dividends paid, $2.15 per share - - (15,776) - (15,776) Stock issued for call premium on early retirement of debt - 225 - 309 534 Other - 33 - 42 75 ----------------------------------------------------------------------------------- Balance December 31, 1995 7,441 848 240,797 (2,345) 246,741 Net earnings - - 14,720 - 14,720 Dividends paid, $2.00 per share - - (14,702) - (14,702) Other - 55 0 35 90 ----------------------------------------------------------------------------------- Balance December 31, 1996 7,441 903 240,815 (2,310) 246,849 Net earnings - - 16,982 - 16,982 Dividends paid, $2.00 per share - - (14,705) - (14,705) Other - 22 - 50 72 ----------------------------------------------------------------------------------- Balance December 31, 1997 $ 7,441 $925 $ 243,092 $(2,260) $ 249,198 ===================================================================================
The accompanying notes are an integral part of the financial statements. NATIONAL PRESTO INDUSTRIES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS A. NATURE OF OPERATIONS: The Company manufactures and distributes small electrical appliances and housewares. Products are sold directly to retail outlets throughout the United States and also through independent distributors. These products are manufactured in plants located at Jackson, Mississippi; Alamogordo, New Mexico; and a portion of its products are imported from nonaffiliated companies in the Pacific Rim countries. B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (1) USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS: In preparation of the Company's consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and related revenues and expenses. Actual results may differ from the estimates used by management. (2) PRINCIPLES OF CONSOLIDATION: The consolidated financial statements include the accounts of National Presto Industries, Inc. and its subsidiaries, all of which are wholly-owned. All material intercompany accounts and transactions are eliminated. (3) CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES: The Company considers all highly liquid marketable securities with a maturity of one week or less to be cash equivalents. Cash equivalent securities totaled $92,418,000 and $90,963,000 at December 31, 1997 and 1996. The Company's cash equivalents and marketable securities are diversely invested, principally in A-rated or higher tax exempt bonds issued by entities throughout the United States. The Company has classified all cash equivalents and marketable securities as available for sale, which requires the securities to be reported at fair value, with unrealized gains and losses reported as a separate component of stockholders' equity. At December 31, 1997 and 1996, cost approximated market value for all securities using the specific identification method. The contractual maturities of the marketable securities held at December 31, 1997 were $68,934,000 in 1998, $42,234,000 in 1999, $23,736,000 in 2000, $1,112,000 in 2001,$3,194,000 beyond 2001 and $1,441,000 with indeterminate maturities. (4) INVENTORIES: Inventories are stated at the lower of cost or market with cost being determined principally on the last-in, first-out (LIFO) method. (5) PROPERTY, PLANT AND EQUIPMENT: Property, plant and equipment are stated at cost. For machinery and equipment, all amounts that are fully depreciated have been eliminated from both the asset and allowance accounts. Depreciation is provided in amounts sufficient to relate the costs of depreciable assets to operations over their service lives, which are estimated at fifteen to forty years for buildings and three to seven years for machinery and equipment. (6) REVENUE RECOGNITION: The Company recognizes revenues when product is shipped. The Company provides for its 60-day over-the-counter return privilege and warranties at the time of shipment. (7) ADVERTISING: The Company's policy is to expense advertising as incurred for the year. Advertising expense was $12,998,000, $11,956,000 and $16,479,000 in 1997, 1996 and 1995. (8) STOCK OPTIONS: The Company uses the intrinsic value method for valuing stock options issued. C. INVENTORIES: The amount of inventories valued on the LIFO basis is $17,633,000 and $16,875,000 as of December 31, 1997 and 1996. Under LIFO, inventories are valued at approximately $11,943,000 and $10,598,000 below current cost determined on a first-in, first-out (FIFO) basis at December 31, 1997 and 1996. The Company uses the LIFO method of inventory accounting to improve matching of costs and revenues. The following table describes that which would have occurred if LIFO inventories had been valued at current cost determined on a FIFO basis: Increase (Decrease) ------------------- Cost of Net Earnings Year Sales Earnings Per Share ---- ----- -------- --------- 1997 $(1,345,000) $ 834,000 $ 0.11 1996 926,000 (574,000) (0.08) 1995 (974,000) 604,000 0.08 This information is provided for comparison with companies using the FIFO basis. D. ACCRUED LIABILITIES: At December 31, 1997 accrued liabilities consisted of payroll $2,291,000, insurance $12,285,000, environmental $3,641,000 and other $3,574,000. At December 31, 1996 accrued liabilities consisted of payroll $2,265,000, insurance $11,286,000, environmental $3,624,000 and other $3,212,000. E. TREASURY STOCK: The Board of Directors has authorized corporate reacquisition of up to 750,000 common shares of the Company stock. No shares were reacquired in 1997 or 1996. During 1995, 1,000 shares were reacquired. Treasury shares have been used for the exercise of stock options and to fund the Company's 401(K) contributions (see note H). F. NET EARNINGS PER COMMON SHARE: On December 31, 1997, the Company adopted Statement of Financial Accounting Standards No. 128 - "Earnings per Share" ("SFAS 128"). As required by the statement, all current and prior year earnings per share data have been restated to conform to the provisions of SFAS 128. The Company's basic net earnings per share amounts have been computed by dividing net earnings by the weighted average number of outstanding common shares. The Company's diluted net earnings per share is computed by dividing net earnings by the weighted average number of outstanding common shares and common share equivalents relating to stock options, when dilutive. Options to purchase 7,500, 3,000 and 3,500 shares of common stock with a weighted average exercise price of $39.54, $41.28 and $41.22 were outstanding at December 31, 1997, 1996 and 1995, but were excluded from the computation of common share equivalents because their exercise prices were greater than the average market price of the common shares. G. STOCK OPTION PLAN: The National Presto Industries, Inc. Stock Option Plan reserves 100,000 shares of the Company's common stock for key employees of the Company. Stock options for 7,500 shares at a weighted average price of $39.54 per share were outstanding at December 31, 1997. Stock options for 3,000 shares at a weighted average price of $41.28 per share were outstanding at December 31, 1996. There were 1000 shares exercisable at $39.54 at December 31, 1997 and 500 shares exercisable at $41.28 at December 31, 1996. The pro forma effect of stock options, if accounted for using the fair value method, is immaterial. H. RETIREMENT PLANS: Pension Plans: The Company has pension plans which cover the majority of employees. Pension benefits are based on an employee's years of service and compensation near the end of those years of service. The Company's funding policy has been to contribute such amounts as necessary, computed on an actuarial basis, to provide the plans with assets sufficient to meet the benefits to be paid to plan members. Plan assets consist primarily (79%) of interest bearing securities with the balance in corporate stocks, principally National Presto Industries, Inc. common stock. Assumptions used to calculate costs and actuarial present values are reviewed regularly by the Company and its independent actuaries. The assumptions used are as follows: 7% and 7.5% discount rate in 1997 and 1996, 4.5% increase in compensation levels, and 8% long term rate of return on investments in 1997 and 1996. The funded status of the plans is summarized below: (In thousands) As of December 31 1997 1996 1995 ----------------- ---- ---- ---- Fair value of plan assets $ 7,527 $7,665 $ 9,137 Projected benefit obligation 8,333 7,338 8,957 ----------------------------- Excess plan assets (obligations in excess of plan assets) $ (806) $ 327 $ 180 ============================= Prepaid pension expense $ 2,778 $2,609 $ 3,012 ============================= 401(k) Plan: The Company has a 401(k) retirement plan, which covers substantially all employees. The Company will match up to 25% of the first 4% contributed by employees to the plan. At its discretion, the Company's matching contribution can be made with either cash or common stock. Company contributions made from the Company's treasury stock, including the Company's cash dividends, totaled $72,000 in 1997, $85,000 in 1996, and $81,000 in 1995. I. INCOME TAXES: The following summarizes the provision for federal and state taxes on income: (Dollars in thousands) 1997 1996 1995 ---- ---- ---- Current: Federal $ 5,201 $5,306 $ 5,884 State 950 920 1,055 ----------------------------- 6,151 6,226 6,939 ----------------------------- Deferred: Federal (979) (1,620) (394) State (164) (152) (111) ----------------------------- (1,143) (1,772) (505) ----------------------------- Total tax provision $ 5,008 $4,454 $ 6,434 ============================= The effective rate of the provision for income taxes as shown in the consolidated statements of earnings differs from the applicable statutory federal income tax rate for the following reasons: Percent of Pre-tax Income ------------------------- 1997 1996 1995 ---- ---- ---- Statutory rate 35.0% 35.0% 35.0% State tax 2.3% 2.6% 2.4% Tax exempt interest and dividends -13.8% -14.1% -12.0% Other -0.7% -0.3% -0.1% --------------------------------- Effective rate 22.8% 23.2% 25.3% ================================= Deferred tax assets and liabilities are recorded based on the differences between the tax basis of assets and liabilities and their carrying amounts for financial reporting purposes. The tax effects of the cumulative temporary differences resulting in a deferred tax asset are as follows at December 31: (In thousands) 1997 1996 ---- ---- Insurance $ 4,717 $4,322 Environmental 1,360 1,356 Pension (1,067) (999) Other 2,843 2,031 ---------------------------- $ 7,853 $6,710 ============================ J. CONCENTRATIONS: One customer accounts for 43%, 38% and 36% of net sales for the years ended December 31, 1997, 1996 and 1995. Production levels at commercial plants may be affected by vendor failure to deliver tooling, material and critical parts within commitments. While recent years have witnessed virtual elimination of these circumstances, there is no assurance against recurrence. Deliveries of new products, some of which have been sourced overseas, could be delayed by labor or supply problems at the vendors or in transportation. As a consequence, these products may not be available in sufficient quantities during the prime selling period. While there has been no major incidence of such problems and the Company has made every reasonable effort to prevent occurrence, there is no assurance that such effort will be totally effective. K. ENVIRONMENTAL: The Company is involved in certain environmental investigation and restoration activities with governmental agencies. The Company has entered into an agreement with the Department of Army that provides for funding costs related to environmental restoration. A total of $27,000,000 has been appropriated in connection with that agreement of which $23,563,000 has been received. The funding of these expenses by the Department of Army has not been recognized as revenues or expenses of the Company. Based on factors known as of December 31, 1997, it is believed that the funds appropriated to date will be adequate to satisfy remaining investigation and restoration activities; however, should environmental agencies require additional studies or remediation activities beyond what is now contemplated, it is possible that existing funds could be inadequate. Management believes that in the absence of any unforeseen future developments, these environmental matters will not have any material effect on the results of operations or financial condition of the Company. L. INTERIM FINANCIAL INFORMATION (UNAUDITED): The following represents unaudited financial information for 1997, 1996, and 1995: (In thousands) -------------- Net Gross Net Earnings Quarter Sales Profit Earnings Per Share ------- ----- ------ -------- --------- 1997 First $ 17,947 $ 3,931 $ 2,579 $ 0.35 Second 16,870 4,932 2,640 0.36 Third 24,917 8,271 3,503 0.48 Fourth 49,806 18,407 8,260 $ 1.12 --------------------------------------------------- Total $ 109,540 $35,541 $16,982 $ 2.31 =================================================== 1996 First $ 17,109 $ 3,637 $ 1,930 $ 0.26 Second 16,970 4,338 2,236 0.31 Third 23,001 6,936 2,821 0.38 Fourth 48,928 18,710 7,733 1.05 --------------------------------------------------- Total $ 106,008 $33,621 $14,720 $ 2.00 =================================================== 1995 First $ 17,962 $ 5,207 $ 2,547 $ 0.35 Second 15,882 4,482 2,497 0.35 Third 29,039 9,691 4,797 0.65 Fourth 57,289 23,416 9,128 1.26 --------------------------------------------------- Total $ 120,172 $42,796 $18,969 $ 2.61 =================================================== The Company's operations are in one industry segment. REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS Stockholders and Board of Directors National Presto Industries, Inc. We have audited the accompanying consolidated balance sheets of National Presto Industries, Inc. and subsidiaries as of December 31, 1997 and 1996, and the related consolidated statements of earnings, stockholders' equity, and cash flows for each of the three years in the period ended December 31, 1997. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of National Presto Industries, Inc. and subsidiaries as of December 31, 1997 and 1996, and the consolidated results of their operations and their consolidated cash flows for each of the three years in the period ended December 31, 1997 in conformity with generally accepted accounting principles. We have also audited Schedule II of National Presto Industries, Inc. and subsidiaries for each of the three years in the period ended December 31, 1997. In our opinion, this schedule presents fairly, in all material respects, the information required to be set forth therein. /S/ Grant Thornton LLP Minneapolis, Minnesota February 19, 1998 NATIONAL PRESTO INDUSTRIES, INC. AND SUBSIDIARIES SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS For the Years Ended December 31, 1997, 1996 and 1995
(In thousands) -------------- Column A Column B Column C Column D Column E -------- -------- -------- -------- -------- Balance at Balance at Beginning End Description of Period Additions (A) Deductions (B) of Period ----------- --------- ------------- -------------- --------- Deducted from assets: Allowance for doubtful accounts: Year ended December 31, 1997 $ 450 $ 148 $ 148 $ 450 ===================================================== Year ended December 31, 1996 $ 450 $ (46) $ (46) $ 450 ===================================================== Year ended December 31, 1995 $ 450 $ 572 $ 572 $ 450 =====================================================
Notes: (A) Amounts charged (credited) to selling and general expenses (B) Principally bad debts written off, net of recoveries EX-11 2 STATEMENT RE COMPUTATION OF PER SHARE EARNINGS EXHIBIT 11 STATEMENT RE COMPUTATION OF PER SHARE EARNINGS The following presents the computation of per share earnings reflecting the assumption that convertible debentures are converted. (IN THOUSANDS EXCEPT PER SHARE DATA) -------------------------------- 1997 1996 1995 ---- ---- ---- Net earnings (1) $16,982 $14,720 $18,969 Add interest expense related to convertible debenture, net of income taxes -- -- 193 -------------------------------- Adjusted net earnings for computation (2) $16,982 $14,720 $19,162 ================================ Weighted average common shares outstanding (3) 7,354 7,352 7,344 Common share equivalents relating to stock options 1 1 1 Adjusted common and common equivalent -------------------------------- shares for computation (4) 7,355 7,353 7,345 ================================ Net earnings per share: Basic (1/3) $ 2.31 $ 2.00 $ 2.58 ================================ Diluted (2/4) $ 2.31 $ 2.00 $ 2.61 ================================ EX-21 3 PARENT AND SUBSIDIARIES EXHIBIT 21 PARENT AND SUBSIDIARIES (Included in the Consolidated Financial Statements and Wholly-owned) National Presto Industries, Inc. Eau Claire, Wisconsin (A Wisconsin Corporation) Its Subsidiaries: National Holding Investment Company Wilmington, Delaware (A Delaware Corporation) Its Subsidiaries: Presto Manufacturing Company Jackson, Mississippi (A Mississippi Corporation) Its Division: Presto Products Manufacturing Company Alamogordo, New Mexico Century Leasing and Liquidating, Inc. Minneapolis, Minnesota (A Minnesota Corporation) Its Subsidiary: Presto Export, Inc. (Inactive) Minneapolis, Minnesota (A Minnesota Corporation) Jackson Sales and Storage Company Jackson, Mississippi (A Mississippi Corporation) Canton Sales & Storage Company Canton, Mississippi (A Mississippi Corporation) Presto Parts & Service, Inc. (Inactive) Los Angeles, California (A California Corporation) Presto Export, Ltd. Christiansted, St. Croix, U.S. Virgin Islands (A Virgin Islands Corporation) National Defense Corporation Eau Claire, Wisconsin (A Wisconsin Corporation) NPI Export Corporation (Inactive) Minneapolis, Minnesota (A Minnesota Corporation) EX-23.1 4 AUDITORS' CONSENT EXHIBIT 23.1 AUDITORS' CONSENT We have issued our report dated February 19, 1998, accompanying the consolidated financial statements and schedule included in the Annual Report of National Presto Industries, Inc. and subsidiaries on Form 10-K for the year ended December 31, 1997. We hereby consent to the incorporation by reference of said report in the Registration Statement of National Presto Industries, Inc. and subsidiaries on Form S-8 (File No. 33-46711, effective March 27, 1992). /S/ Grant Thornton LLP Minneapolis, Minnesota February 19, 1998 EX-27 5 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM NATIONAL PRESTO INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 YEAR DEC-31-1997 DEC-31-1997 91,639 140,651 20,692 450 18,633 272,083 20,008 11,002 291,870 42,672 0 0 0 7,441 241,757 291,870 109,540 109,540 73,999 73,999 0 148 8 21,990 5,008 16,982 0 0 0 16,982 2.31 2.31
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