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<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D. C. 20549
FORM 10-Q/A
(Amendment No. 1)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
--- EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1994
---------------------------------------------
Commission file number 1-71
-----------------------------------------------------
BORDEN, INC.
New Jersey 13-0511250
- ------------------------------------------- -----------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
180 East Broad Street, Columbus, OH 43215
---------------------------------------------------------------
(Address of principal executive offices)
(614) 225-4000
---------------------------------------------------------------
(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 (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
--- ---
Number of shares of common stock, $0.625 par value, outstanding as of the close
of business on July 22, 1994: 141,424,181
Page 1
<PAGE> 2
<TABLE>
- -----------------------------------------------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
BORDEN, INC
<CAPTION>
Three Months Ended
June 30
--------------------------------------
(In millions except per share data) 1994 1993
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
REVENUE Net sales $1,369.3 $1,352.5
- -----------------------------------------------------------------------------------------------------------------------
COSTS AND Cost of goods sold 1,043.3 997.4
EXPENSES Marketing, general and administrative
expenses 268.4 259.4
Interest expense 29.8 31.8
Equity in income of affiliates (2.6) (2.5)
Minority interest 10.0 10.0
Other (income) and expense, net 1.9 9.6
Income taxes 7.4 16.3
-------- --------
1,358.2 1,322.0
-------- --------
- -----------------------------------------------------------------------------------------------------------------------
EARNINGS Income from continuing operations 11.1 30.5
Loss from discontinued operations (12.0)
-------- --------
Net income $ 11.1 $ 18.5
======== ========
- -----------------------------------------------------------------------------------------------------------------------
SHARE DATA Income from continuing operations $ 0.08 $ 0.22
Loss from discontinued operations (0.09)
-------- --------
Net income per common share $ 0.08 $ 0.13
======== ========
Cash dividends paid per common share $ 0.075 $ 0.300
Average number of common shares
outstanding during the period 141.5 140.9
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
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<TABLE>
- --------------------------------------------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
<CAPTION>
BORDEN, INC.
Six Months Ended
June 30
-----------------------------------
(In millions except per share data) 1994 1993
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
REVENUE Net sales $2,642.0 $2,650.1
- --------------------------------------------------------------------------------------------------------------------
COSTS AND Cost of goods sold 1,998.0 1,943.9
EXPENSES Marketing, general and administrative
expenses 525.7 499.3
Interest expense 57.6 62.3
Equity in income of affiliates (4.9) (6.3)
Minority interest 19.2 20.2
Other (income) and expense, net 18.2 18.2
Income taxes 11.3 38.3
-------- --------
2,625.1 2,575.9
-------- --------
- --------------------------------------------------------------------------------------------------------------------
EARNINGS Income from continuing operations 16.9 74.2
Loss from discontinued operations (28.5)
-------- --------
Income before cumulative effect of
accounting changes 16.9 45.7
Cumulative effect of change in
accounting for postemployment
benefits (18.0)
-------- --------
Net income $ 16.9 $ 27.7
======== ========
- --------------------------------------------------------------------------------------------------------------------
SHARE DATA Income from continuing operations $ 0.12 $ 0.53
Loss from discontinued operations (0.20)
-------- --------
Income before cumulative effect of
accounting changes 0.12 0.33
Cumulative effect of change in
accounting for postemployment
benefits (0.13)
-------- --------
Net income per common share $ 0.12 $ 0.20
======== ========
Cash dividends paid per common share $ 0.150 $ 0.600
Average number of common shares
outstanding during the period 141.5 140.8
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
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<TABLE>
- -------------------------------------------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<CAPTION>
BORDEN, INC.
Six Months Ended
June 30
------------------------------
(In millions) 1994 1993
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CASH FLOWS
FROM OPERATING Cash flows from operations $ 19.1 $ (30.4)
ACTIVITIES ------- -------
- -------------------------------------------------------------------------------------------------------------------
CASH FLOWS Capital expenditures (60.5) (79.0)
FROM Divestiture of businesses 87.3 16.7
INVESTING ------- -------
ACTIVITIES 26.8 (62.3)
------- -------
- -------------------------------------------------------------------------------------------------------------------
CASH FLOWS Increase (decrease) in short-term debt 203.1 (130.7)
FROM Reduction in long-term debt (77.2) (41.4)
FINANCING Long-term debt financing 18.2 262.5
ACTIVITIES Decrease in receivables sold (150.0)
Dividends paid (21.2) (84.4)
Other .9 6.6
------- -------
(26.2) 12.6
------- -------
- -------------------------------------------------------------------------------------------------------------------
Increase (decrease) in cash and equivalents 19.7 (80.1)
Cash and equivalents at beginning
of period 100.3 186.0
------- -------
Cash and equivalents at end
of period $ 120.0 $ 105.9
======= =======
- -------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL Interest paid $ 39.7 $ 51.8
DISCLOSURES Income taxes paid (11.3) 16.6
OF CASH FLOW
INFORMATION
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
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<TABLE>
- ------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
BORDEN, INC.
(In millions)
<CAPTION>
June 30 December 31
----------- -----------
ASSETS 1994 1993
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CURRENT Cash and equivalents $ 120.0 $ 100.3
ASSETS Accounts receivable (less allowance
for doubtful accounts of $12.5 and
$8.9 respectively) 460.6 334.7
Inventories:
Finished and in-process goods 372.4 319.4
Raw materials and supplies 168.8 171.0
Other current assets 155.0 142.6
Net assets of discontinued operations 192.2 222.2
-------- --------
1,469.0 1,290.2
-------- --------
- ------------------------------------------------------------------------------------------------------------------------
INVESTMENTS Investments in and advances to
AND OTHER affiliated companies 94.1 91.3
ASSETS Deferred income taxes 236.8 225.4
Other assets 128.1 126.6
-------- --------
459.0 443.3
-------- --------
- ------------------------------------------------------------------------------------------------------------------------
PROPERTY Land 104.7 105.5
AND Buildings 606.5 609.6
EQUIPMENT Machinery and equipment 1,955.3 1,949.3
-------- --------
2,666.5 2,664.4
Less accumulated depreciation (1,328.6) (1,327.7)
-------- ----------
1,337.9 1,336.7
-------- ----------
- ------------------------------------------------------------------------------------------------------------------------
INTANGIBLES Intangibles resulting from
business acquisitions 790.0 801.5
-------- --------
- ------------------------------------------------------------------------------------------------------------------------
$4,055.9 $3,871.7
======== ========
</TABLE>
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<TABLE>
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
BORDEN, INC.
(In millions except share and per share data)
<CAPTION>
June 30 December 31
----------- -----------
LIABILITIES AND SHAREHOLDERS' EQUITY 1994 1993
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CURRENT Debt payable within one year $ 558.9 $ 410.6
LIABILITIES Accounts and drafts payable 466.2 433.3
Restructuring reserve 110.7 145.9
Income taxes 30.9 56.5
Other current liabilities 361.6 325.2
-------- --------
1,528.3 1,371.5
-------- --------
- -----------------------------------------------------------------------------------------------------------------
OTHER Long-term debt 1,243.8 1,240.8
Deferred income taxes 60.4 47.1
Postretirement benefit obligations 353.4 353.8
Other long-term liabilities 103.9 103.8
Minority interest 508.6 508.8
-------- --------
2,270.1 2,254.3
-------- --------
- -----------------------------------------------------------------------------------------------------------------
SHAREHOLDERS' Common stock - $0.625 par value
EQUITY Authorized 480,000,000 shares
Issued 194,983,374 shares 121.9 121.9
Paid in capital 88.3 88.1
Accumulated translation adjustment (156.1) (171.1)
Minimum pension liability (95.5) (95.5)
Retained earnings 830.8 835.1
-------- --------
789.4 778.5
Less common stock in treasury (at
cost) - 53,561,979 shares and
53,625,339 shares, respectively (531.9) (532.6)
-------- --------
257.5 245.9
-------- --------
- -----------------------------------------------------------------------------------------------------------------
$4,055.9 $3,871.7
======== ========
</TABLE>
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
(dollars in millions except per share amounts)
1. INTERIM FINANCIAL STATEMENTS
The accompanying unaudited interim consolidated financial statements
contain all adjustments, consisting only of normal recurring adjustments,
which in the opinion of management are necessary for a fair statement of
the results for the interim periods. Results for the interim periods are
not necessarily indicative of results for the full years.
2. DISCONTINUED OPERATIONS
In December 1993 the Company recorded a pretax charge of $637.4, $490.0
after tax, to accrue the estimated cost of a business divestiture program.
The program involves the divestment of North American snacks, seafood,
jams and jellies, foodservice, and other businesses.
The estimated cost of the program includes loss on disposals, operating
losses from December 31, 1993 to date of disposal, severance and other
costs directly associated with the program.
Businesses divested as of June 30, 1994, which include seafood and
foodservice, generated proceeds of $87.3. Pretax losses on disposal of
$284.8 and pretax operating losses, severance and other costs of $53.0
have been charged to the reserve as of June 30, 1994. Total program costs
incurred through June 30, 1994 are in line with the original estimates.
Management believes that the sale or closure of the discontinued
operations will be substantially complete by the end of 1994 or early
1995.
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SIGNATURE
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.
BORDEN, INC.
Date: November 16, 1994 By /s/ James C. Van Meter
--------------------------------
James C. Van Meter
Executive Vice President and
Chief Financial Officer
(Principal Financial Officer and
duly authorized signing officer)
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