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 March 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: 0-2536
CENTRAL STEEL AND WIRE COMPANY
(Exact name of registrant as specified in its charter)
DELAWARE 36-0885660
(State or other jurisdiction of (I. R. S. Employer
incorporation or organization) Identification No.)
3000 W. 51ST STREET, CHICAGO, ILLINOIS 60632-2198
(Address of principal executive offices)
Registrant's telephone number, including area code:
(312) 471-3800
NONE
(Former name, former address and former fiscal year)
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 latest practicable
date: 286,000 shares as of April 29, 1994.
<PAGE>
PART I Financial Information
ITEM 1. Financial Statements
<TABLE>
<CAPTION>
Central Steel and Wire Company
Condensed Statements of Earnings and
Earnings Reinvested in Business
(In millions, except shares and per share)
(Unaudited)
Three months ended
March 31
-------------------------
1994 1993
-----------------------------------------------------------------
<S> <C> <C>
Net sales $ 147.7 126.5
-------------------------
Cost of Merchandise sold 107.5 92.4
Operating Expenses 15.6 14.8
Selling and administrative expenses 16.4 16.1
Interest income, net (.4) (.2)
-------------------------
139.1 123.1
-------------------------
Earnings before income taxes 8.6 3.4
-------------------------
Income taxes:
Federal 2.8 1.1
State .6 .2
-------------------------
3.4 1.3
Net earnings ($18.17 per share
in 1994 and $7.29 in 1993) 5.2 2.1
Earnings reinvested in business
at beginning of period 131.8 133.1
Dividends declared - $.50 per
share in 1994 and 1993 (.1) (.1)
-------------------------
Earnings reinvested in business
at end of period $ 136.9 135.1
--------------------------------------------------------------
Average number of common shares
outstanding 286,000 287,000
--------------------------------------------------------------
See accompanying note to condensed financial statements.
</TABLE>
-2-
<PAGE>
<TABLE>
<CAPTION>
Condensed Statements of Cash Flow
(In millions)
(Unaudited)
Three months ended
March 31
-------------------------
1994 1993
-----------------------------------------------------------------
Cash
Increase (Decrease)
<S> <C> <C>
Operating Activities:
Net earnings $ 5.2 2.1
Depreciation 1.1 1.0
Changes in assets and liabilities .3 (3.2)
-------------------------
Cash from (for) operations 6.6 (.1)
-------------------------
Financing activities
dividends declared (.1) (.1)
-------------------------
Investing activities:
Additions to property,
plant and equipment, net (2.5) (.9)
-------------------------
Net increase (decrease) in cash
and cash-equivalents $ 4.0 (1.1)
-----------------------------------------------------------------
Income taxes paid $ .5 .2
-----------------------------------------------------------------
See accompanying note to condensed financial statements.
</TABLE>
-3-
<PAGE>
<TABLE>
<CAPTION>
Condensed Balance Sheets
(In millions, except shares and per share)
Assets Mar.31,1994 Dec.31,1993
(Unaudited)
-----------------------------------------------------------------
<S> <C> <C>
Current assets:
Cash and cash-equivalents $ 48.5 44.5
Receivables,less allowance for
doubtful accounts of $.9 in
1994 and $.8 in 1993 62.0 47.7
Inventories 73.6 71.5
Other 3.4 4.5
-------------------------
Total current assets 187.5 168.2
-------------------------
Deferred income taxes 6.5 6.4
Property, plant and equipment, at cost 149.6 147.5
Less accumulated depreciation 119.1 118.4
-------------------------
Property, plant and equipment, net 30.5 29.1
-------------------------
$ 224.5 203.7
-----------------------------------------------------------------
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable 60.6 48.3
Accrued expenses 5.2 5.0
Income taxes 4.2 1.2
-------------------------
Total current liabilities 70.0 54.5
-------------------------
Accrued postretirement health benefits 15.4 15.2
Stockholders' equity:
Common stock, $5 par value per share.
Authorized 287,000 shares
in 1994 and 1993;
issued and outstanding
286,000 shares in 1994 and 1993 1.4 1.4
Capital in excess of par value .8 .8
Earnings reinvested in business 136.9 131.8
-------------------------
Total stockholders' equity 139.1 134.0
-------------------------
$ 224.5 203.7
-----------------------------------------------------------------
</TABLE>
-4-
<PAGE>
Note to condensed financial statements - The preceding
financial information is stated in conformity with generally
accepted accounting principles and is unaudited, but in the
opinion of management includes all adjustments necessary,
consisting of normal accruals, for a fair statement of the
operating results for these periods. Interim inventory values
are based on management's estimate of year-end LIFO inventory
values under current operating conditions and the general state
of the economy as it relates to the steel industry, in
particular. See also notes to financial statements in the
Annual Report on Form 10-K for the year ended December 31, 1993
filed with the Securities and Exchange Commission.
ITEM 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
The information in this item should be read together with
the information incorporated by reference into Item 7,
Management's Discussion and Analysis of Financial Condition and
Results of Operations," of the Company's Annual Report on Form
10-K for the year ended December 31, 1993.
Operating Results
Sales for the three months ended March 31, 1994 were $147.7
million, an increase of 17% from the three months ended March 31,
1993. The increase in sales for the three months was due to
higher unit volume and higher average selling prices.
Operating, selling and administrative expenses for the three
months ended March 31, 1994 were $32.0 million, an increase of 4%
from the three months ended March 31, 1993. Operating, selling
and administrative expenses are relatively fixed and accordingly
do not change in the same ratio with sales.
Interest income was $.4 million for the quarter ended March
31, 1994 compared to $.2 million for the first quarter of the
prior year. The increase was due to a combination of higher
average interest rates and higher funds available for investment.
Net earnings for the three months ended March 31, 1994 were
$5.2 million compared to $2.1 million for the first quarter of
the prior year. The increase in earnings was due to the
operating elements discussed above.
-5-
<PAGE>
Liquidity and Capital Resources
The Company's liquidity remains strong with the Company's
operations providing the funds needed for working capital and
capital expenditures. Funds in excess of current business needs
are invested in cash-equivalents. The Company continued to
remain debt free for the three months ended March 31, 1994 and
for the foreseeable future expects funding requirements to be met
without external financing.
It is the Company's policy to continue to make such
expenditures on property, plant and equipment as are necessary to
keep its facilities among the most modern in the industry. The
Company does not anticipate any material changes in expenditures
for these purposes from the levels of the last several years.
PART II. Other Information
ITEM 6. Exhibits and Reports on Form 8-K
(b) Form 8-K was not required to be filed during the
three months ended March 31, 1994.
-6-
<PAGE>
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.
CENTRAL STEEL AND WIRE COMPANY
(Registrant)
Date 5/4/94 /s/ Frank A. Troike
-----------------------------------
Frank A. Troike
Executive Vice President
Date 5/4/94 /s/ Richard P. Ugolini
-----------------------------------
Richard P. Ugolini
Comptroller (Chief Accounting
Officer)
-7-
