FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
------------------------
{X} QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended August 31, 1994
OR
{ } TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission file number 1-7002
BLOUNT, INC.
(Exact name of registrant as specified in its charter)
Delaware 63-0593908
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
4520 Executive Park Drive 36116-1602
Montgomery, Alabama (Zip Code)
(Address of principal executive offices)
(205) 244-4000
(Registrant's telephone number, including area code)
Not Applicable
(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, 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 latest practicable date.
Outstanding at
Class of Common Stock August 31, 1994
--------------------- ----------------
Class A Common Stock $1.00 Par Value 8,475,352 shares
Class B Common Stock $1.00 Par Value 4,042,494 shares
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BLOUNT, INC. AND SUBSIDIARIES
INDEX
Page No.
------------
Part I. Financial Information
Consolidated Balance Sheets -
August 31, 1994 and February 28, 1994 3
Consolidated Statements of Income -
three months and six months ended
August 31, 1994 and 1993 4
Consolidated Statements of Cash Flows -
six months ended August 31, 1994 and 1993 5
Notes to Consolidated Financial Statements 6
Management's Discussion and Analysis 11
Exhibit 11 - Computation of Net Income
Per Common Share 14
Page 2
<PAGE>
BLOUNT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
August 31, February 28,
1994 1994
-------- --------
(Unaudited)
ASSETS
------
Current assets:
Cash and cash equivalents, including short-term
investments of $43,982 and $48,810 $ 45,292 $ 52,213
Accounts receivable, net of allowances for
doubtful accounts of $2,698 and $2,238 128,179 134,458
Inventories 64,495 60,180
Deferred income taxes 16,439 17,742
Other current assets 18,682 12,812
-------- --------
Total current assets 273,087 277,405
Property, plant and equipment, net of accumulated
depreciation of $137,246 and $135,694 136,375 140,422
Cost in excess of net assets of acquired
businesses, net 67,076 60,171
Other assets 12,612 14,903
-------- --------
Total Assets $489,150 $492,901
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Current liabilities:
Notes payable and current maturities of
long-term debt $ 6,194 $ 2,082
Accounts payable 63,601 74,267
Accrued expenses 86,788 83,757
Billings in excess of costs and recognized
profits on uncompleted contracts 3,878 12,953
-------- --------
Total current liabilities 160,461 173,059
Long-term debt, exclusive of current maturities 96,166 107,651
Deferred income taxes, exclusive of current portion 15,010 13,499
Other liabilities 33,629 31,839
-------- --------
Total liabilities 305,266 326,048
-------- --------
Commitments and Contingent Liabilities
Shareholders' equity:
Common Stock: par value $1.00 per share
Class A: 8,475,352 and 8,273,035 shares issued 8,475 8,273
Class B: 4,042,494 and 4,178,197 shares issued 4,043 4,178
Capital in excess of par value of stock 10,227 9,515
Retained earnings 153,129 137,440
Accumulated translation adjustment 8,010 7,447
-------- --------
Total shareholders' equity 183,884 166,853
-------- --------
Total Liabilities and Shareholders' Equity $489,150 $492,901
======== ========
The accompanying notes are an integral part of these statements.
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BLOUNT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share data)
Three months ended Six months ended
August 31, August 31,
---------------------- ----------------------
1994 1993* 1994 1993*
---------- ---------- ---------- ----------
(Unaudited) (Unaudited)
Sales $ 138,781 $ 118,454 $ 284,465 $ 235,840
Cost of sales 91,687 80,491 188,852 162,445
---------- ---------- ---------- ----------
Gross profit 47,094 37,963 95,613 73,395
Selling, general and
administrative expenses 29,324 24,527 59,590 49,109
---------- ---------- ---------- ----------
Income from operations 17,770 13,436 36,023 24,286
Interest expense (2,816) (3,181) (5,654) (5,568)
Interest income 569 480 1,021 598
Other income (expense), net 211 (180) (642) (1,124)
---------- ---------- ---------- ----------
Income before taxes 15,734 10,555 30,748 18,192
Provision for income taxes 6,035 3,898 12,041 6,671
---------- ---------- ---------- ----------
Income from continuing
operations before
extraordinary gain 9,699 6,657 18,707 11,521
Discontinued operations:
Loss from operations, net (4,215) (7,872)
---------- ---------- ---------- ----------
Income before extraordinary
gain 9,699 2,442 18,707 3,649
Extraordinary gain on
repurchase of debt, net 92 92
---------- ---------- ---------- ----------
Net income $ 9,699 $ 2,534 $ 18,707 $ 3,741
========== ========== ========== ==========
Income (loss) per share
of common stock:
Continuing operations $ .75 $ .52 $ 1.45 $ .91
Discontinued operations (.33) (.62)
---------- ---------- ---------- ----------
Income before
extraordinary gain .75 .19 1.45 .29
Extraordinary gain .01 .01
---------- ---------- ---------- ----------
Net income $ .75 $ .20 $ 1.45 $ .30
========== ========== ========== ==========
Weighted average number of
common shares outstanding 12,906,796 12,635,612 12,874,564 12,609,341
========== ========== ========== ==========
Cash dividends declared
per share:
Class A Common Stock $ .1250 $ .1125 $ .250 $ .225
========== ========== ========== ==========
Class B Common Stock $ .1125 $ .1000 $ .225 $ .200
========== ========== ========== ==========
* Certain items have been reclassified for comparative purposes.
The accompanying notes are an integral part of these statements.
Page 4
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BLOUNT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Six months ended August 31,
---------------------------
1994 1993
-------- --------
(Unaudited)
Cash Flows From Operating Activities:
Net Income $ 18,707 $ 3,741
Adjustments to reconcile net income to net cash
provided by operating activities:
Extraordinary gain (92)
Depreciation, amortization and other
noncash charges 11,570 11,823
Deferred income taxes 2,999 (3,790)
Loss on disposals of property, plant and equipment 218 814
Changes in assets and liabilities, net of effect
of business acquisition:
Decrease in aggregate balance of
accounts receivable sold (17,522)
Decrease in accounts receivable 7,776 11,538
(Increase) decrease in inventories (1,591) 3,867
Increase in other assets (4,497) (9,438)
Increase (decrease) in accounts payable (10,862) 6,030
Decrease in accrued expenses (2,985) (3,986)
Decrease in other liabilities (6,779) (1,706)
-------- --------
Net cash provided by operating activities 14,556 1,279
-------- --------
Cash Flows From Investing Activities:
Proceeds from sales of property, plant and equipment 2,882 418
Purchases of property, plant and equipment (3,973) (3,337)
Acquisition of business (5,103)
-------- --------
Net cash used in investing activities (6,194) (2,919)
-------- --------
Cash Flows From Financing Activities:
Net increase (reduction) in short-term borrowings (404) (2,954)
Issuance of long-term debt 97,652
Reduction of long-term debt (12,383) (75,023)
Dividends paid (3,018) (2,650)
Issuance of stock under stock option and
dividend reinvestment plans 522 218
-------- --------
Net cash used in financing activities (15,283) 17,243
-------- --------
Net increase (decrease) in cash and cash equivalents (6,921) 15,603
Cash and cash equivalents at beginning of period 52,213 17,723
-------- --------
Cash and cash equivalents at end of period $ 45,292 $ 33,326
======== ========
The accompanying notes are an integral part of these statements.
Page 5
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BLOUNT, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 In the opinion of management, the accompanying unaudited consolidated
financial statements contain all adjustments (consisting of only normal
recurring accruals) necessary to present fairly the financial position at
August 31, 1994 and the results of operations and cash flows for the periods
ended August 31, 1994 and 1993. These financial statements should be read in
conjunction with the notes to the financial statements included in Blount,
Inc.'s Annual Report to Shareholders for the year ended February 28, 1994. The
results of operations for the periods ended August 31, 1994 and 1993 are not
necessarily indicative of the results to be expected for the full fiscal year,
due to the seasonal nature of certain of the Company's operations.
NOTE 2 Inventories consist of the following (in thousands):
August 31, February 28,
1994 1994
------------ ------------
Finished goods $ 28,287 $ 27,169
Work in process 14,310 13,329
Raw materials and supplies 21,898 19,682
-------- --------
$ 64,495 $ 60,180
======== ========
NOTE 3 The principal assets and liabilities of the discontinued construction
operations included in the Company's consolidated balance sheets are as follows
(in thousands):
August 31, February 28,
1994 1994
------------ ------------
Accounts receivable $ 44,065 $ 59,265
Other current assets 10,858 7,922
Other assets 5,552 6,013
Accounts payable (33,837) (38,503)
Accrued expenses (11,714) (11,106)
Other current liabilities (3,886) (13,015)
Other liabilities (5,828) (7,312)
NOTE 4 On April 28, 1994, the Company acquired all the outstanding capital
stock of CTR Manufacturing, Inc. ("CTR") for cash and notes of approximately
$11.5 million. CTR manufactures automated forestry harvesting equipment. The
transaction has been accounted for as a purchase and, accordingly, the net
assets and results of operations of CTR have been included in the Company's
consolidated financial statements since the date of acquisition. The excess of
the purchase price over the fair value of the net assets acquired is being
amortized on a straight-line basis over 40 years. The company's consolidated
results of operations for the six months ended August 31, 1994 and 1993 would
not have been materially different from reported amounts if the purchase had
occurred at the beginning of either period. CTR's sales and net income for its
most recent fiscal year were approximately $11.8 million and $.8 million,
respectively.
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NOTE 5 During the first six months of fiscal 1995, the Company repurchased
$11.9 million of its 9% subordinated notes with no significant gain or loss.
NOTE 6 The Company announced in January 1989, that a pocket of a cleaning
solvent, trichloroethylene ("TCE"), had been detected under the concrete floor
of the Company's cutting systems division plant in Milwaukie, Oregon. TCE was
detected in the City of Milwaukie drinking water wells. The Company's deep
wells, which are surrounded by the City of Milwaukie wells, draw from the same
aquifer and show TCE amounts less than those of the City's wells. On December
6, 1989, the Company entered into a Stipulation and Consent Agreement ("SCA")
for facility investigation with the Department of Environmental Quality ("DEQ")
of the State of Oregon and agreed to investigate the TCE contamination beneath
the plant and take appropriate measures to remediate potential adverse effects
from such contamination. In November 1992, the Company submitted a Facility
Investigation Final Report ("Report") to the DEQ for the Milwaukie, Oregon
plant. The Report states that the contamination has affected a limited portion
of the saturated engineered fill under the building. Since monitoring began in
1988, the contaminant plume in the engineered fill has not migrated. Through
treatment, the concentration of the contaminants in the plume has been reduced
by greater than 50% since 1989. The TCE plume has not migrated off Company
property. The Company believes the contaminants pose no risk to Company
employees or the community because the groundwater within the shallow alluvium
is not used and the contaminants are not migrating towards the drinking water
supply aquifer. There is no evidence that the Company's operations have
affected the drinking water supply aquifer. On August 16, 1994, the DEQ found
that the Company had fulfilled the requirements of the SCA and terminated its
provisions. The Company will continue to remediate, the future cost of which
is not material.
The United States Environmental Protection Agency ("EPA") has designated a
predecessor of the Company as a potentially responsible party ("PRP") with
respect to the Onalaska Municipal Landfill in Onalaska, Wisconsin (the "Site").
The waste complained of was placed in the landfill prior to 1981 by a
corporation, some of whose assets were purchased in 1981 by a predecessor of
the Company. It is the view of the Company that because its predecessor
corporation purchased assets rather than stock, the Company does not have
successor liability and is not properly a PRP. However, the EPA has indicated
it does not accept this position. The Company believes the EPA is wrong on the
successor liability issue. However, with other PRP's, the Company made a good
faith offer to the EPA to pay a portion of the clean-up costs. The offer was
rejected and the EPA is proceeding with the clean-up. The estimated clean-up
costs are approximately $5 million to $10 million with maintenance costs of
approximately $150 thousand per year for 30 years. In 1989 the EPA named four
PRP's. One of the PRP's, the Town of Onalaska (the "Town") and the EPA have
negotiated a consent decree under which the Town would be released from future
liability in return for paying $110 thousand, granting access to the Site and
adjacent properties and performing some future maintenance work. The Company
denies that it is a PRP and is unable to determine any other party's share of
total remediation costs (other than the Town's based on the proposed consent
decree). The Company does not know the financial status of the other PRP's and
other parties that, while not named by the EPA as PRP's, may have liability
with respect to the Site. The Company does not expect the situation to have a
material adverse effect.
On December 20, 1989, the Company sold to Asea Brown Boveri Ltd. ("ABB") all
the stock of W+E Umwelttechnik AG, then an engineering subsidiary of the
Company in the waste-to-energy business located in Zurich, Switzerland. On
July 26, 1993, ABB filed a Request for Arbitration with the Zurich Chamber of
Commerce. The request contains statements that ABB has or anticipates having
Page 7
<PAGE>
losses on two projects which were underway at the time of sale. While it is
not clear, ABB appears to be claiming approximately 100 million Swiss francs
and rescission of the purchase agreement based on the Company's alleged wilful
failure to disclose material facts and that ABB made a fundamental mistake in
entering into the purchase agreement. The Company believes it has valid
defenses based on the terms of the purchase agreement, the facts and the law.
In March 1994, the Company filed a lawsuit against ABB and two of its
subsidiaries in the Circuit Court of Jefferson County, Alabama seeking
declaratory judgment and injunctive relief as well as money damages for (i)
intentional interference with the Company's business relationships and (ii)
abuse of process. ABB has filed a separate lawsuit against Blount in the U.S.
District Court in Birmingham to compel arbitration and has removed the lawsuit
filed by Blount to the Federal Court. These two lawsuits have been
consolidated. The Company does not expect the situation to have a material
adverse effect on its financial condition.
The Company is a defendant in a number of product liability lawsuits involving
serious injuries for which there are significant self-insured retentions, some
of which seek significant or unspecified damages. In addition, the Company is
a party to a number of other suits arising out of the conduct of its business.
While there can be no assurance as to their ultimate outcome, the Company does
not believe these lawsuits will have a material adverse effect on its financial
condition.
The Company's contingencies include normal liabilities for performance and
completion of construction contracts. At August 31, 1994, the Company had
outstanding bank letters of credit in the approximate amount of $19.7 million
issued principally in connection with various construction contracts for which
the Company is contingently liable to the issuing banks in the event payment is
demanded by the holder.
The Company is contingently liable for the remaining rental payments, net of
the value of the leased equipment, under certain leases transferred to the
buyer of a former subsidiary. The leases have rental payments remaining of
approximately $9.4 million which expire in 1999. The Company has received
indemnification against liabilities arising from the leases from the purchaser
of the former subsidiary.
The Company enters into foreign exchange forward contracts with major banks to
reduce the effect of exchange rate fluctuations on anticipated future foreign
currency cash flows. These contracts are accounted for at market value, with
the resulting gains or losses recognized in income. At August 31, 1994, the
Company had foreign exchange forward contracts maturing through May 31, 1995,
in the absolute amount of approximately $45.9 million. The market value of
these contracts and the resulting gain or loss was not material at August 31,
1994.
See Notes 4 and 8 to the Consolidated Financial Statements included in Blount,
Inc.'s Annual Report to Shareholders for the year ended February 28, 1994 for
other commitments and contingencies of the Company which have not changed
significantly since year-end.
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NOTE 7 Segment information is as follows (in thousands):
Three Months Six Months
Ended August 31, Ended August 31,
------------------- -------------------
1994 1993 1994 1993
-------- -------- -------- --------
Sales:
Outdoor products $ 61,879 $ 58,041 $130,399 $117,773
Industrial and power equipment 49,409 40,157 101,706 78,124
Sporting equipment 27,493 20,256 52,360 39,943
-------- -------- -------- --------
$138,781 $118,454 $284,465 $235,840
======== ======== ======== ========
Operating income:
Outdoor products $ 10,189 $ 7,425 $ 20,241 $ 14,159
Industrial and power equipment 7,794 6,589 15,621 11,243
Sporting equipment 5,451 2,962 10,122 6,107
-------- -------- -------- --------
Operating income from segments 23,434 16,976 45,984 31,509
Corporate office expenses (5,664) (3,540) (9,961) (7,223)
-------- -------- -------- --------
Income from operations 17,770 13,436 36,023 24,286
Interest expense (2,816) (3,181) (5,654) (5,568)
Interest income 569 480 1,021 598
Other income (expense), net 211 (180) (642) (1,124)
-------- -------- -------- --------
Income before income taxes $ 15,734 $ 10,555 $ 30,748 $ 18,192
======== ======== ======== ========
NOTE 8 Income taxes paid during the six months ended August 31, 1994 and 1993
were $12.1 million and $8.8 million. Interest paid during the six months ended
August 31, 1994 and 1993 was $5.4 million and $7.3 million.
NOTE 9 Net income per common share is based on the weighted average number of
common and common equivalent shares (stock options) outstanding in each period.
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NOTE 10 Selected quarterly information for fiscal 1994 is as follows (in
thousands, except share data):
First Second Third Fourth
Quarter Quarter Quarter Quarter Total
-------- -------- -------- -------- --------
Sales $117,386 $118,454 $128,030 $124,175 $488,045
======== ======== ======== ======== ========
Income from continuing
operations before
extraordinary gain $ 4,864 $ 6,657 $ 8,262 $ 4,521 $ 24,304
-------- -------- -------- -------- --------
Discontinued operations:
Loss from operations, net (3,657) (4,215) (1,591) (203) (9,666)
Loss on disposal, net (650) (650)
-------- -------- -------- -------- --------
Total loss from
discontinued operations (3,657) (4,215) (1,591) (853) (10,316)
-------- -------- -------- -------- --------
Income before extraordinary
gain 1,207 2,442 6,671 3,668 13,988
Extraordinary gain 92 92
-------- -------- -------- -------- --------
Net income $ 1,207 $ 2,534 $ 6,671 $ 3,668 $ 14,080
======== ======== ======== ======== ========
Income (loss) per share
of common stock:
Income from continuing
operations before
extraordinary gain $ .39 $ .52 $ .65 $ .35 $ 1.91
Discontinued operations (.29) (.33) (.13) (.06) (.81)
-------- -------- -------- -------- --------
Income before
extraordinary gain .10 .19 .52 .29 1.10
Extraordinary gain .01 .01
-------- -------- -------- -------- --------
Net income $ .10 $ .20 $ .52 $ .29 $ 1.11
======== ======== ======== ======== ========
Page 10
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
Operating Results
Sales for the second quarter and first six months of fiscal 1995 were $138.8
million and $284.5 million compared to $118.5 million and $235.8 million for
the second quarter and first six months of fiscal 1994. Net income for the
second quarter and first half of fiscal 1995 was $9.7 million ($.75 per share)
and $18.7 million ($1.45 per share) compared to net income of $2.5 million
($.20 per share) and $3.7 million ($.30 per share) for the comparable periods
of fiscal 1994. Last year's second quarter and first half included a loss from
discontinued operations of $4.2 million ($.33 per share) and $7.9 million ($.62
per share). In addition, the second quarter of fiscal 1994 included an
extraordinary gain on repurchase of debt of $92 thousand ($.01 per share). The
improved operating results reflect continued strong performance by each of the
Company's manufacturing segments. The principal reasons for these results and
the status of the Company's financial condition are set forth below and should
be read in conjunction with the Company's 1994 Form 10-K and 1994 Annual Report
to Shareholders.
Sales for the Outdoor Products segment in the second quarter and first six
months of fiscal 1995 were $61.9 million and $130.4 million compared to $58.0
million and $117.8 million during the second quarter and first six months of
fiscal 1994. Operating income increased to $10.2 million and $20.2 million
during the second quarter and first six months of fiscal 1995 from $7.4 million
and $14.2 million in the comparable periods of the prior fiscal year. The
sales and operating income increases were principally attributable to a higher
volume of saw chain and saw bars sold by the Company's Oregon Cutting Systems
Division in both the first and second quarters of the current fiscal year, and
improved margins and demand for the Company's riding lawn mowers.
Sales for the Industrial and Power Equipment segment were $49.4 million and
$101.7 million during the second quarter and first six months of fiscal 1995
compared to $40.2 million and $78.1 million during the same periods of fiscal
1994. Operating income increased to $7.8 million and $15.6 million from $6.6
million and $11.2 million during the comparable periods of fiscal 1994. The
improvement in sales and operating income resulted principally from an increase
in the volume of forestry and industrial loaders sold and the contribution from
CTR Manufacturing, Inc. acquired on April 28, 1994 (see Note 3 of notes to the
attached consolidated financial statements).
Sales for the Sporting Equipment segment increased to $27.5 million and $52.4
million in the second quarter and first six months of fiscal 1995 from $20.3
million and $39.9 million in the comparable periods of fiscal 1994, reflecting
increases in the volume of ammunition, reloading equipment and primers and
percussion caps sold. Operating income during the second quarter and first
half of fiscal 1995 increased to $5.5 million and $10.1 million from $3.0
million and $6.1 million during the second quarter and first half of fiscal
1994. The increase in operating income was principally due to increased sales
volume.
Selling, general and administrative expenses (including corporate expenses)
reflect the increased sales level, increased accruals for charitable
contributions and incentive compensation as a result of the significantly
improved operating results, and accruals for certain legal matters. Selling,
general and administrative expenses were 21.1 percent and 20.9 percent of sales
in the second quarter and first six months of fiscal 1995 compared to 20.7
percent and 20.8 percent of sales in the comparable periods of the prior year.
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The Company's total backlog at August 31, 1994 was $150.7 million compared to
$147.1 million at February 28, 1994 and $132.1 million at August 31, 1993.
Financial Condition, Liquidity and Capital Resources
At August 31, 1994, the Company had no amounts outstanding under its
uncommitted short-term lines of credit, its $25 million receivable sale
agreement or its $60 million revolving credit agreement. The Company's total
capitalization at August 31, 1994 consists of $96.2 million long-term debt and
equity of $183.9 million for a long-term debt to equity ratio of .5 to 1 as
compared to a ratio of .6 to 1 at February 28, 1994. At August 31, 1994, the
Company had 9% subordinated notes outstanding in the principal amount of $88.1
million maturing in 2003. See Note 3 of Notes to the Consolidated Financial
Statements included in Blount, Inc.'s 1994 Annual Report to Shareholders for
the terms and conditions of the revolving credit agreement, the receivable sale
agreement and the 9% subordinated notes.
Working capital was $112.6 million at August 31, 1994 compared to $104.3
million at February 28, 1994. The increase resulted principally from the
Company's improved earnings. The Company's operating cash flows for the first
six months of fiscal 1995 were $14.6 million compared to $1.3 million in the
first six months of fiscal 1994. Operating cash flows for the prior year were
reduced by $17.5 million as a result of the Company ceasing sales of accounts
receivable under its $25 million receivable sale agreement during the second
quarter of fiscal 1994. Cash and cash equivalent balances decreased to $45.3
million from $52.2 million at February 28, 1994 as the Company's operating cash
flows were offset by cash expenditures to acquire CTR Manufacturing, Inc.,
repurchase $11.9 million of the Company's 9% subordinated notes (see Notes 4
and 5 of notes to the attached consolidated financial statements), and pay
dividends.
Restrictions on the Company's ability to pay cash dividends are contained in
the indenture related to the Company's 9% subordinated notes and in certain
financial covenants of the revolving credit agreement. Under the most
restrictive requirement, retained earnings of approximately $22.0 million were
available for the payment of dividends at August 31, 1994.
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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.
BLOUNT, INC.
- ----------------------
Registrant
Date: October 12, 1994 /s/ Harold E. Layman
---------------------------------
Harold E. Layman
Senior Vice President &
Chief Financial Officer
Page 13
<TABLE>
PART I - EXHIBIT 11
BLOUNT, INC. AND SUBSIDIARIES
COMPUTATION OF NET INCOME PER COMMON SHARE
(In thousands, except share data)
(Unaudited)
<CAPTION>
Three Months Six Months
Ended August 31, Ended August 31,
------------------------ -----------------------
1994 1993 1994 1993
---------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
Primary:
Income from continuing operations $ 9,669 $ 6,657 $ 18,707 $ 11,521
Discontinued operations - loss from
operations, net (4,215) (7,872)
---------- ---------- ---------- ----------
Income before extraordinary gain 9,669 2,442 18,707 3,649
Extraordinary gain on repurchase of debt, net 92 92
---------- ---------- ---------- ----------
Net Income $ 9,669 $ 2,534 $ 18,707 $ 3,741
========== ========== ========== ==========
Shares:
Weighted average common shares outstanding 12,516,321 12,296,347 12,513,682 12,281,185
Dilutive effect of stock options 390,475 339,265 360,882 328,156
---------- ---------- ---------- ----------
Average common shares outstanding
as adjusted 12,906,796 12,635,612 12,874,564 12,609,341
========== ========== ========== ==========
Per Common Share:
Continuing operations $ .75 $ .52 $ 1.45 $ .91
Discontinued operations (.33) (.62)
---------- ---------- ---------- ----------
Income before extraordinary gain .75 .19 1.45 .29
Extraordinary gain .01 .01
---------- ---------- ---------- ----------
Net Income $ .75 $ .20 $ 1.45 $ .30
========== ========== ========== ==========
Assuming Full Dilution:
Income from continuing operations $ 9,669 $ 6,657 $ 18,707 $ 11,521
Discontinued operations - loss from
operations, net (4,215) (7,872)
---------- ---------- ---------- ----------
Income before extraordinary gain 9,669 2,442 18,707 3,649
Extraordinary gain 92 92
---------- ---------- ---------- ----------
Net Income $ 9,669 $ 2,534 $ 18,707 $ 3,741
========== ========== ========== ==========
Shares:
Average common shares as adjusted
for primary computation 12,906,796 12,635,612 12,874,564 12,609,341
Additional dilutive effect of stock options 9,176 38,066 4,523
---------- ---------- ---------- ----------
Average common shares outstanding
as adjusted 12,915,972 12,635,612 12,912,630 12,613,864
========== ========== ========== ==========
Per Common Share:
Continuing operations $ .75 $ .52 $ 1.45 $ .91
Discontinued operations (.33) (.62)
---------- --------- ---------- ----------
Income before extraordinary gain .75 .19 1.45 .29
Extraordinary gain .01 .01
---------- ---------- ---------- ----------
Net Income $ .75 $ .20 $ 1.45 $ .30
========== ========== ========== ==========
</TABLE>
Page 14
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0
0
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