-----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, HUxOFZ6yJ0pPtsXHi5FFsvsYm8PINlGrp2pklVHEW89a7ynYPDQUt9pf5mxyPGD8 qMnwB0bvoZOl+O5EsaPiOg== 0000950123-95-003271.txt : 19951127 0000950123-95-003271.hdr.sgml : 19951127 ACCESSION NUMBER: 0000950123-95-003271 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951113 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: STARRETT HOUSING CORP CENTRAL INDEX KEY: 0000093675 STANDARD INDUSTRIAL CLASSIFICATION: 1531 IRS NUMBER: 135411123 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-06736 FILM NUMBER: 95589883 BUSINESS ADDRESS: STREET 1: 909 THIRD AVE CITY: NEW YORK STATE: NY ZIP: 10022 BUSINESS PHONE: 2127513100 MAIL ADDRESS: STREET 1: 909 THIRD AVENUE CITY: NEW YORK STATE: NY FORMER COMPANY: FORMER CONFORMED NAME: STARRETT BROTHERS & EKEN INC DATE OF NAME CHANGE: 19710614 10-Q 1 FORM 10-Q FOR PERIOD ENDED SEPTEMBER 30, 1995 1 SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended September 30, 1995 Commission File No. 1-6736 STARRETT CORPORATION (Formerly Starrett Housing Corporation) (Exact Name of Registrant as specified in its charter) NEW YORK 13-5411123 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 909 THIRD AVENUE, NEW YORK, NEW YORK 10022 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (212)751-3100 NONE (Former name, former address and former fiscal year, if changed since last report) 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 the number of shares outstanding of each of the issuer's classes of common stock as of the close of the period covered by this report. 6,566,402 shares of common stock. 2 STARRETT CORPORATION AND SUBSIDIARIES TABLE OF CONTENTS
PAGE ---- Consolidated Financial Statements: Statement of Consolidated Financial Position - September 30, 1995. . . . . . . . 3 Condensed Statement of Consolidated Financial Position - December 31, 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Statements of Common Stockholders' Equity - September 30, 1995 and December 31, 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Statements of Consolidated Operations - For the Nine Months ended September 30, 1995 and 1994 . . . . . . . . . . . . . . . . . . . . . . . 6 Statements of Consolidated Operations - For the Three Months ended September 30, 1995 and 1994 . . . . . . . . . . . . . . . . . . . . . . . 7 Statements of Consolidated Cash Flows - For the Nine Months ended September 30, 1995 and 1994 . . . . . . . . . . . . . . . . . . . . . . . 8 Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . 9 Management's Discussion of Financial Condition and Results of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Exhibit A - Computation of Primary Earnings per Share - For the Nine Months ended September 30, 1995 and 1994 . . . . . . . . 12 Exhibit B - Computation of Primary Earnings per Share - For the Three Months ended September 30, 1995 and 1994. . . . . . . . 13
2 3 STARRETT CORPORATION AND SUBSIDIARIES STATEMENT OF CONSOLIDATED FINANCIAL POSITION SEPTEMBER 30, 1995 (In Thousands) (Unaudited) ASSETS: Cash and cash equivalents of $585 . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,891 Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,775 Inventory of real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66,700 Investments in real estate joint ventures . . . . . . . . . . . . . . . . . . . . . 7,434 Property and Equipment-Net . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,497 Land Held for Investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,809 Other Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,232 -------- Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $126,338 ======== LIABILITIES AND EQUITY: Liabilities: Payable Within One Year: Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,375 Current portion of long-term obligations . . . . . . . . . . . . . . . . . . . . . 21,104 Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,267 -------- Total Liabilities Payable Within One Year . . . . . . . . . . . . . . . . 46,746 Deferred Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,341 Deferred Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,346 Long-Term Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,062 -------- Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76,495 -------- Common Stockholders' Equity Common stock-par value, $1.00; authorized, 18,000 shares . . . . . . . . . . . . . 6,566 Capital in excess of par value . . . . . . . . . . . . . . . . . . . . . . . . . . 23,933 Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,748 Pension Liability Adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . (814) Shares held in treasury-at cost . . . . . . . . . . . . . . . . . . . . . . . . . (1,590) -------- Common Stockholders' Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,843 -------- Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $126,338 ========
See Notes to Consolidated Financial Statements 3 4 STARRETT CORPORATION AND SUBSIDIARIES CONDENSED STATEMENT OF CONSOLIDATED FINANCIAL POSITION (In Thousands) (Unaudited)
December 31, 1994 ------------ ASSETS Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . $ 17,474 U.S. Treasury/Certificates of Deposit . . . . . . . . . . . . . . . . . . . . . 304 Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,918 Inventory of Real Estate . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,332 Investments in Real Estate Joint Ventures . . . . . . . . . . . . . . . . . . . 6,701 Other Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,538 -------- Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $116,267 ======== LIABILITIES AND EQUITY Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,874 Other Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,359 Deferred Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,851 Long-Term Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,066 Common Stockholders' Equity . . . . . . . . . . . . . . . . . . . . . . . . . . 47,117 -------- Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $116,267 ========
See Notes to Consolidated Financial Statements 4 5 STARRETT CORPORATION AND SUBSIDIARIES STATEMENTS OF COMMON STOCKHOLDERS' EQUITY (In Thousands Except Share Data) (Unaudited)
September 30, December 31, 1995 1994 ------------- ------------ Common Stock - Par Value, $1.00; Authorized, 18,000,000 shares; Issued, 6,566,402 shares . . . . . . . . . . $ 6,566 $ 6,566 Capital in Excess of Par Value . . . . . . . . . . . . . . . . . 23,933 23,933 Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . 21,748 19,022 Pension Liability Adjustment . . . . . . . . . . . . . . . . . . (814) (814) Less: Shares Held in Treasury - at cost; 1995, 305,442 and 1994, 305,427 shares . . . . . . . . . . . . . . . (1,590) (1,590) ------- ------- TOTAL COMMON STOCKHOLDERS' EQUITY . . . . . . . . . . . . . . . . $49,843 $47,117 ======= =======
See Notes to Consolidated Financial Statements 5 6 STARRETT CORPORATION AND SUBSIDIARIES STATEMENTS OF CONSOLIDATED OPERATIONS For The Nine Months Ended September 30, 1995 and 1994 (In Thousands Except Per Share Data) (Unaudited)
1995 1994 ------- ------- Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . $86,487 $88,305 Construction Costs . . . . . . . . . . . . . . . . . . . . . . . 44,001 48,507 ------- ------- Income from Construction Contracts and Related Revenues . . . . . . . . . . . . . . . . . . . . . . . . 42,486 39,798 Expenses: General and Administrative . . . . . . . . . . . . . . . . . . . 19,671 18,512 Security Service Labor & Other Costs . . . . . . . . . . . . . . 8,086 7,539 Selling . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,963 3,649 Mortgage and Closing Costs . . . . . . . . . . . . . . . . . . . 3,730 3,917 Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329 494 ------- ------- Total . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,779 34,111 ------- ------- Income before Income Taxes . . . . . . . . . . . . . . . . . . . 6,707 5,687 Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . 2,808 2,473 ------- ------- Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,899 $ 3,214 ======== ======== Earnings per Common Share: Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . $ .62 $ .51 ======== ======== Weighted average number of shares . . . . . . . . . . . . . . . . 6,261 6,261 ======== ======== Cash Dividends per Share . . . . . . . . . . . . . . . . . . . . $ .1875 $ .0625 ======== ========
See Notes to Consolidated Financial Statements 6 7 STARRETT CORPORATION AND SUBSIDIARIES STATEMENTS OF CONSOLIDATED OPERATIONS For The Three Months Ended September 30, 1995 and 1994 (In Thousands Except Per Share Data) (Unaudited)
1995 1994 -------- -------- Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . $32,805 $32,868 Construction Costs . . . . . . . . . . . . . . . . . . . . . . . 17,054 18,486 -------- -------- Income from Construction Contracts and Related Revenues . . . . . . . . . . . . . . . . . . . . . . . . 15,751 14,382 -------- -------- Expenses: General and Administrative . . . . . . . . . . . . . . . . . . . 6,650 6,214 Security Service Labor and Other Costs . . . . . . . . . . . . . 3,160 2,850 Selling . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,469 1,298 Mortgage and Closing Costs . . . . . . . . . . . . . . . . . . . 1,344 1,372 Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 167 -------- -------- Total . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,734 11,901 -------- -------- Income before Income Taxes . . . . . . . . . . . . . . . . . . . 3,017 2,481 Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . 1,221 993 -------- -------- Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,796 $ 1,488 ======== ======== Earnings per Common Share: Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . $ .28 $ .23 ======== ======== Weighted average number of shares . . . . . . . . . . . . . . . . 6,261 6,261 ======== ======== Cash Dividends per Share . . . . . . . . . . . . . . . . . . . . $ .0625 $ .0625 ======== ========
See Notes to Consolidated Financial Statements 7 8 STARRETT CORPORATION AND SUBSIDIARIES STATEMENTS OF CONSOLIDATED CASH FLOWS For The Nine Months Ended September 30, 1995 and 1994 (In Thousands) (Unaudited)
1995 1994 -------- -------- OPERATING ACTIVITIES: Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,899 $ 3,214 Adjustments to Reconcile Income to Net Cash Used In Operating Activities: Depreciation and amortization . . . . . . . . . . . . . . . . . 2,136 1,703 Deferred income taxes . . . . . . . . . . . . . . . . . . . . . 776 107 Equity in (earnings) in Joint Ventures . . . . . . . . . . . . (1,774) (1,736) Changes in Operating Assets and Liabilities: Receivables . . . . . . . . . . . . . . . . . . . . . . . . . (1,857) (3,308) Inventories . . . . . . . . . . . . . . . . . . . . . . . . . (14,180) (1,181) Account payable . . . . . . . . . . . . . . . . . . . . . . . 4,501 1,960 Other assets . . . . . . . . . . . . . . . . . . . . . . . . . (5,915) (2,121) Accrued liabilities . . . . . . . . . . . . . . . . . . . . . (1,392) (1,113) Deferred revenues . . . . . . . . . . . . . . . . . . . . . . (505) (420) Net Cash Used In Operating Activities . . . . . . . . . . . . . . (14,311) (2,895) -------- ------- INVESTING ACTIVITIES: Investment in Real Estate Joint Ventures . . . . . . . . . . . . (1,354) (5,889) Proceeds from Real Estate Joint Ventures . . . . . . . . . . . . 2,395 3,399 Investments In And Advances To Partnerships . . . . . . . . . . . 582 72 U.S. Treasury/Certificates of Deposit . . . . . . . . . . . . . . 304 6,993 Purchase of Property and Equipment . . . . . . . . . . . . . . . (991) (695) -------- ------- Net Cash Provided by Investing Activities . . . . . . . . . . . . 936 3,880 -------- ------- FINANCING ACTIVITIES: Repayment of Long Term Obligations . . . . . . . . . . . . . . . (10,189) (10,042) Proceeds from Long Term Obligations . . . . . . . . . . . . . . . 13,763 8,790 Payment of Cash Dividends to Common Stockholders . . . . . . . . . . . . . . . . . . . . . . . . . . (782) -------- ------- Net Cash Provided by (Used In) Financing Activities . . . . . . . 2,792 (1,252) -------- ------- Decrease in Cash and Cash Equivalents . . . . . . . . . . . . . . (10,583) (267) Cash and Cash Equivalents Beginning of Period . . . . . . . . . . 17,474 12,171 -------- ------- Cash and Cash Equivalents End of Period . . . . . . . . . . . . . $ 6,891 $11,904 ======== =======
See Notes to Consolidated Financial Statements 8 9 STARRETT CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The accompanying consolidated financial statements of Starrett Corporation and its subsidiaries have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of the management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The consolidated financial statements as of and for the nine months ended September 30, 1995 and 1994 are unaudited and are subject to year-end audit and adjustments. The results of operations for the interim periods are not necessarily indicative of the results of operations for the fiscal year. For comparability purposes, certain 1994 amounts have been reclassified to conform with the 1995 classifications. For further information, refer to the consolidated financial statements and footnotes included thereto in the Company's Annual Report on Form 10-K for the year ended December 31, 1994. 9 10 MANAGEMENT'S DISCUSSION OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS COMPARISON OF NINE AND THREE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994 During the nine and three months ended September 30, 1995, the Company had income from operations of $6,707,000 and $3,017,000 as compared with $5,687,000 and $2,481,000 in 1994, and net income of $3,899,000 or $.62 a share and $1,796,000 or $.28 a share as compared to $3,214,000 or $.51 a share and $1,488,000 or $.23 a share for the same period in 1994. The slight decrease in revenues was attributable to a decrease in the number of houses delivered in the Company's single-family homes subsidiary Levitt Corp. This decrease was caused by the timing of project phases under development in Levitt's Puerto Rico region. Levitt's domestic region partially offset the decrease with a significant improvement in the gross profit for the region. Levitt's backlog of homes contracted for sale increased from $98,852,000 at September 30, 1994 to $107,619,000 at September 30, 1995. Included in Levitt's sales backlog is its 50% interests in joint ventures. During the nine months ended September 30, 1995, Levitt showed a net increase of approximately $13,139,000 in various development projects, increasing its inventory and joint venture investments in its single-family home division. The Company's management division, Grenadier Realty Corp., and its construction management division, HRH Construction Corporation, continued to show profits. The Company expects that the increased level of profits will continue for the balance of the year. Cash Flow and Liquidity While the Company presently has various banking relationships, it does not have any formal lines of credit other than its Levitt subsidiary. The Company has begun a program to secure a formal line of credit with its banking institutions and anticipates this process to be completed by the end of the year. 10 11 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. STARRETT CORPORATION (Registrant) s/ Paul Milstein --------------------------------------- Paul Milstein - Chairman s/ Lewis A. Weinfeld --------------------------------------- Lewis A. Weinfeld - Executive Vice President and Chief Financial Officer (Principal Accounting Officer) DATE: November 13, 1995 11 12 EXHIBIT INDEX ------------- Exhibit No. Description ----------- ----------- Exhibit 11.A Computation of Primary Earnings per Share Exhibit 11.B Computation of Primary Earnings per Share Exhibit 27 Financial Data Schedule EX-11.A 2 COMPUTATION OF PRIMARY EARNINGS PER SHARE 1 EXHIBIT A STARRETT CORPORATION AND SUBSIDIARIES EXHIBIT SETTING FORTH THE COMPUTATION OF PRIMARY EARNINGS PER SHARE INFORMATION (In Thousands Except Per Share Amounts)
NINE MONTHS ENDED SEPTEMBER 30, --------------------- 1995 1994 ---- ---- Weighted average number of shares outstanding during the period . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,261 6,261 ====== ====== Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,899 $3,214 ====== ====== Primary earnings per share: Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ .62 $ .51 ====== ======
12 EX-11.A 3 COMPUTATION OF PRIMARY EARNINGS PER SHARE 1 EXHIBIT B STARRETT CORPORATION AND SUBSIDIARIES EXHIBIT SETTING FORTH THE COMPUTATION OF PRIMARY EARNINGS PER SHARE INFORMATION (In Thousands Except Per Share Amounts)
THREE MONTHS ENDED SEPTEMBER 30, ---------------------- 1995 1994 ------ ------ Weighted average number of shares outstanding during the period . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,261 6,261 ====== ====== Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,796 $1,488 ====== ====== Primary earnings per share: Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ .28 $ .23 ====== ======
13 EX-27 4 FINANCIAL DATA SCHEDULE
5 9-MOS DEC-31-1995 JAN-01-1995 SEP-30-1995 6,891,000 0 28,251,000 476,000 66,700,000 93,663,000 11,479,000 7,982,000 126,338,000 46,746,000 0 6,566,000 0 0 43,277,000 126,338,000 86,487,000 86,487,000 44,001,000 44,001,000 35,450,000 0 329,000 6,707,000 2,808,000 3,899,000 0 0 0 3,899,000 .62 .62
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