<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
Annual Report pursuant to Section 15(d) of the
Securities Exchange Act of 1934
For the fiscal year ended December 31, 1996
Commission File Number 1-1594
A. Full title of the plan and address of the plan, if different from that of
the issuer named below:
Second Amended and Restated
CROWLEY, MILNER & COMPANY
PROFIT SHARING PLAN
effective February 1, 1990
B. Name of issuer of securities held pursuant to the plan and the address of
its principal executive offices:
CROWLEY, MILNER AND COMPANY
2301 West Lafayette Boulevard
Detroit, Michigan 48216
The following financial statements and exhibits are files as part of this
report:
(a) Financial Statements
Report of Independent Auditors
Statements of Assets Available for Benefits, with Fund Information -
December 31, 1996 and 1995
Statements of Changes in Assets Available for Benefits, with Fund
Information - Years Ended December 31, 1996 and 1995
Notes to Financial Statements
Supplemental Schedules
Item 27a - Schedule of Assets Held for Investment Purposes
Item 27d - Schedule of Reportable Transactions
(b) Exhibits - Consent of Independent Auditors
<PAGE> 2
Audited Financial Statements and Schedules
Crowley, Milner and Company
Profit Sharing Plan
Years ended December 31, 1996 and 1995
with Report of Independent Auditors
ERNST & YOUNG LLP
<PAGE> 3
Crowley, Milner and Company
Profit Sharing Plan
Audited Financial Statements and Schedules
Years ended December 31, 1996 and 1995
Contents
Report of Independent Auditors
Audited Financial Statements
Statement of Assets Available for Benefits, with Fund Information
Statement of Changes in Assets Available for Benefits, with Fund Information
Notes to Financial Statements
Supplemental Schedules
Item 27a - Schedule of Assets Held for Investment Purposes
Item 27d - Schedule of Reportable Transactions
<PAGE> 4
Report of Independent Auditors
Administrative Committee
Crowley, Milner and Company Profit Sharing Plan
We were engaged to audit the accompanying financial statements and supplemental
schedules of Crowley, Milner and Company Profit Sharing Plan ("the Plan") as of
December 31, 1996 and 1995, and for the years then ended, as listed in the
table of contents. These financial statements and schedules are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on the results of our audits.
In our opinion, the financial statements referred to above present fairly, in
all material respects, assets available for plan benefits of the Plan at
December 31, 1996 and December 31, 1995, and the changes in its assets
available for plan benefits for the years then ended, in conformity with
generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedules of assets
held for investment and reportable transactions as of and for the year ended
December 31, 1996, are presented for purposes of complying with the Department
of Labor's Rules and Regulations for Reporting and Disclosure under the
Employee Retirement Income Security Act of 1974, and are not a required part of
the basic financial statements. The fund information in the Statement of
Assets Available for Plan Benefits is presented for purposes of additional
analysis rather than to present the net assets available for benefits and
changes in net assets available for benefits of each fund. The supplemental
schedules and fund information have been subjected to the auditing procedures
applied in our audit of the basic financial statements and, in our opinion, are
fairly stated in all material respects in relation to the 1996 basic financial
statements taken as a whole.
The information presented in the "Schedules of Assets Held for Investment
Purposes and Reportable Transactions" does not disclose the historical cost of
investments. Disclosure of this information is required by the Department of
Labor's rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974.
/s/ Ernst & Young LLP
June 13, 1997
<PAGE> 5
Crowley, Milner and Company Profit Sharing Plan
Statement of Assets Available for Benefits, with Fund Information
<TABLE>
<CAPTION>
Fund Information
- ------------------------------------------------------------------------------------------------------------------------------------
Government Intermediate Equity Equity International Loan/
Securities Bond Income Growth Equity Processing
Fund Fund Fund Fund Index Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
December 31, 1996
Assets
Investments at fair value (Note 1)
Royal Maccabee's separate accounts $526,612 $656,764 $1,063,964 $1,225,893 $161,924
Royal Maccabee's Guaranteed
Investment Contract
Company Stock
---------- ---------- ---------- ---------- ---------- ----------
Total investments 526,612 656,764 1,063,964 1,225,893 161,924
Receivables:
Participant loans receivable $144,804
Participants' contributions 4,276 4,118 6,577 7,831 2,067
Employer's contribution 17,478 13,651 22,544 25,324 6,774
---------- ---------- ---------- ---------- ---------- ----------
Total Receivables: 21,754 17,769 29,121 33,155 8,841 144,804
Other
---------- ---------- ---------- ---------- ---------- ----------
Assets available for benefits $548,366 $674,533 $1,093,085 $1,259,048 $170,765 $144,804
========== ========== ========== ========== ========== ==========
<CAPTION>
Fund Information
- ------------------------------------------------------------------------------------------------------------------------------------
Royal G.I.C.
Maccabee's Collective S&P Money
Safty + #2 Safty + #1, 500 Market Crowley
Fund #2 Fund Fund Fund Stock Total
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
December 31, 1996
Assets
Investments at fair value (Note 1)
Royal Maccabee's separate accounts $1,658,799 $624,668 $346,534 $6,265,158
Royal Maccabee's Guaranteed
Investment Contract $1,232,335 1,232,335
Company Stock $231,649 231,649
---------- ---------- ---------- ---------- ---------- ----------
Total investments 1,232,335 1,658,799 624,668 346,534 231,649 7,729,142
Receivables:
Participant loans receivable 144,804
Participants' contributions 8,944 - 4,463 2,567 1,239 42,082
Employer's contribution 62,344 - 15,534 18,180 (19,537) 162,292
---------- ---------- ---------- ---------- ---------- ----------
Total Receivables: 71,288 - 19,997 20,747 (18,298) 349,178
Other 34,485 34,485
---------- ---------- ---------- ---------- ---------- ----------
Assets available for benefits $1,303,623 $1,658,799 $644,665 $367,281 $247,836 $8,112,805
========== ========== ========== ========== ========== ==========
</TABLE>
<PAGE> 6
Crowley, Milner and Company Profit Sharing Plan
Statement of Assets Available for Benefits, with Fund Information
Fund Information
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
Government Intermediate Equity Equity International Loan/
Securities Bond Income Growth Equity Processing
Fund Fund Fund Fund Index Fund
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
December 31, 1995
Assets
Investments at fair value (Note 1)
Royal Maccabee's separate accounts $590,032 $798,979 $1,124,439 $ 1,068,050 $ 112,405
Royal Maccabee's Guaranteed
Investment Contract
Company Stock
Participant loans receivable $ 152,856
Other 26,478 13,832
-------- -------- ---------- ---------- -------- ---------
Assets available for benefits $590,032 $798,979 $1,150,917 $1,081,882 $112,405 $ 152,856
======== ======== ========== ========== ======== =========
<CAPTION>
Fund Information
- -------------------------------------------------------------------------------------------------------------------------
Royal G.I.C. S&P Money
Maccabee's Collective 500 Market Crowley
Safty Funds Fund Fund Fund Stock Total
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
December 31, 1995
Assets
Investments at fair value (Note 1)
Royal Maccabee's separate accounts $ 1,898,938 $ 534,694 $ 366,108 $ 6,493,645
Royal Maccabee's Guaranteed
Investment Contract $1,630,792 $ 1,630,792
Company Stock 83,382 83,382
Participant loans receivable $ 152,856
Other (4,191) (824) (36,160) 8,770 7,905
---------- ----------- --------- --------- ------- ----------
Assets available for benefits $1,626,601 $ 1,898,114 $ 498,534 $ 366,108 $92,152 $ 8,368,580
========== =========== ========= ========= ======= ===========
</TABLE>
<PAGE> 7
Crowley, Milner and Company Profit Sharing Plan
Statement of Changes in Assets Available for Benefits, with Fund Information
Year Ended December 31, 1996
<TABLE>
<CAPTION>
Fund Information
- ------------------------------------------------------------------------------------------------------------------------------------
Government Intermediate Equity Equity International Loan/
Securities Bond Income Growth Equity Processing
Fund Fund Fund Fund Index Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions:
Contributions:
Participants $ 53,496 $53,300 $ 79,967 $ 85,154 $ 18,232
Crowley, Milner and Company 23,372 17,565 28,242 31,415 8,199
---------- ---------- ---------- ---------- ---------- ----------
76,868 70,865 108,209 116,569 26,431
Interest and dividend income - - - - - $ 10,204
---------- ---------- ---------- ---------- ---------- ----------
76,868 70,865 108,209 116,569 26,431 10,204
Deductions:
Participants' accounts distributed
upon withdrawal 129,366 87,352 205,630 159,512 10,455 1,629
Fees 3,259 4,229 6,117 6,635 761 -
Other (additions) - - - - - (126)
---------- ---------- ---------- ---------- ---------- ----------
132,625 91,581 211,747 166,147 11,216 1,503
Realized and unrealized gain on
investments 21,520 24,279 138,297 184,666 15,191 -
Net transfers between funds (7,429) (128,009) (92,591) 42,078 27,954 (16,753)
---------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease) (41,666) (124,446) (57,832) 177,166 58,360 (8,052)
Assets available for benefits
beginning of year 590,032 798,979 1,150,917 1,081,882 112,405 152,856
---------- ---------- ---------- ---------- ---------- ----------
Assets available for benefits
end of year $548,366 $674,533 $1,093,085 $1,259,048 $170,765 $144,804
========== ========== ========== ========== ========== ==========
<CAPTION>
Fund Information
- ------------------------------------------------------------------------------------------------------------------------------------
Royal G.I.C.
Maccabee's Collective S&P Money
Safty + #2 Safty + #1, 500 Market Crowley
Fund #2 Fund Fund Fund Stock Total
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions:
Contributions:
Participants $ 112,383 $ 43,606 $ 33,796 $ 18,663 $ 498,597
Crowley, Milner and Company 49,771 - 18,454 22,960 42,030 242,008
---------- ---------- ---------- ---------- ---------- ----------
162,154 - 62,060 56,756 60,693 740,605
Interest and dividend income 97,845 $165,260 - - 788 274,097
---------- ---------- ---------- ---------- ---------- ----------
259,999 165,260 62,060 56,756 61,481 1,014,702
Deductions:
Participants' accounts distributed
upon withdrawal 595,840 404,575 170,115 57,746 11,475 1,833,695
Fees 8,087 - 2,967 2,401 34,456
Other (additions) (13,571) - - (867) (14,564)
---------- ---------- ---------- ---------- ---------- ----------
590,356 404,575 173,082 60,147 10,608 1,853,587
Realized and unrealized gain on
investments - - 120,033 19,892 59,232 583,110
Net transfers between funds 7,379 - 137,120 (15,328) 45,579 0
---------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease) (322,978) (239,315) 146,131 893 155,684 (255,775)
Assets available for benefits
beginning of year 1,626,601 1,898,114 498,534 366,108 92,152 8,368,580
---------- ---------- ---------- ---------- ---------- ----------
Assets available for benefits
end of year $1,303,623 $1,658,799 $644,665 $367,281 $247,836 $8,112,805
========== ========== ========== ========== ========== ==========
</TABLE>
<PAGE> 8
Crowley, Milner and Company Profit Sharing Plan
Statement of Changes in Assets Available for Benefits, with Fund Information
Year Ended December 31, 1995
Fund Information
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Government Intermediate Equity Equity International Loan/
Securities Bond Income Growth Equity Processing
Fund Fund Fund Fund Index Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions:
Contributions:
Participants $ 59,407 $ 63,867 $ 74,161 $ 73,430 $ 20,134
Crowley, Milner and Company 13,631 8,766 10,435 11,838 3,185
--------- -------- ---------- ---------- --------- ----------
73,038 72,633 84,596 85,268 23,319
Interest and dividend income - - - - - $ 13,486
--------- --------- ---------- ---------- --------- ----------
73,038 72,633 84,596 85,268 23,319 13,486
Deductions:
Participants' accounts distributed
upon withdrawal 164,689 127,334 193,592 158,744 42,991 30,248
Fees 3,451 4,736 6,144 5,758 995 -
Other (additions) deductions (39) (753) (772) (364) (111) -
--------- --------- ---------- ---------- --------- ----------
168,101 131,317 198,964 164,138 43,875 30,248
Realized and unrealized gain (loss) on
investments 81,753 153,895 348,395 258,392 (5,210) -
Net transfers between funds (9,740) (59,444) 76,554 36,691 (193,857) 49,345
--------- --------- ---------- ---------- --------- ----------
Net increase (decrease) (23,050) 35,767 310,581 216,213 (219,623) 32,583
Assets available for benefits
beginning of year 613,082 763,212 840,336 865,669 332,028 120,273
--------- --------- ---------- ---------- --------- ----------
Assets available for benefits
end of year $ 590,032 $798,979 $1,150,917 $1,081,882 $ 112,405 $ 152,856
========= ========= ========== ========== ========= ==========
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Royal G.I.C.
Maccabee's Collective S&P Money
Safty + #2 Safty + #1, 500 Market Crowley
Fund #2 Fund Fund Fund Stock Total
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions:
Contributions:
Participants $ 123,493 $ 30,143 $ 29,379 $ 5,217 $ 479,231
Crowley, Milner and Company 30,411 5,343 18,206 8,820 110,635
---------- --------- -------- --------- -------- ----------
153,904 35,486 47,585 14,037 589,866
Interest and dividend income 117,563 $ 201,438 - 26,177 28,982 387,646
---------- --------- -------- --------- -------- ----------
271,467 201,438 35,486 73,762 43,019 977,512
Deductions:
Participants' accounts distributed
upon withdrawal 390,694 737,913 70,027 133,996 4,624 2,054,852
Fees 9,616 267 2,755 2,700 - 36,422
Other (additions) deductions (1,610) 3,321 (819) - - (1,147)
---------- --------- -------- --------- -------- ----------
398,700 741,501 71,963 136,696 4,624 2,090,127
Realized and unrealized gain (loss) on
investments 118,318 - - 955,543
Net transfers between funds 41,717 (235) 98,143 (92,931) 53,757 -
---------- --------- -------- --------- -------- ----------
Net increase (decrease) (85,516) (540,298) 179,984 (155,865) 92,152 (157,072)
Assets available for benefits
beginning of year 1,712,117 2,438,412 318,550 521,973 - 8,525,652
---------- --------- -------- --------- -------- ----------
Assets available for benefits
end of year $1,626,601 $1,898,114 $498,534 $ 366,108 $ 92,152 $8,368,580
========== ========== ======== ========= ======== ==========
</TABLE>
<PAGE> 9
Crowley, Milner and Company Profit Sharing Plan
Notes to Financial Statements
December 31, 1996
1. Description of the Plan
Crowley, Milner and Company Profit Sharing Plan (the Plan) is a voluntary,
defined contribution plan established February 1, 1984 covering all eligible
employees of Crowley, Milner and Company (the Company).
Information about the Plan agreement and the vesting and benefit provisions is
contained in the Summary Plan Description, copies of which are available from
the Human Resource Office of the Company.
Eligible employees may make annual contributions to the Plan up to a maximum
amount as allowed by Internal Revenue Code of 1986 (the Code).
The Company contributes to employee accounts as stipulated in the Plan.
The Company has the right to amend or terminate the Plan at any time. In the
event the Plan is terminated, all participants' accounts become fully vested
and nonforfeitable.
2. Summary of Significant Accounting Policies
The fair value of the participation units owned by the Plan in the Royal
Maccabees Life Insurance Company (RMLK) separate accounts represent their cash
equivalent values on the last business day of the Plan year. The fair value of
the Company s stock is valued at the last reported sales price on the last
business day of the Plan year.
The Royal Maccabees Life Insurance Company guaranteed investment contract is
invested in the Bankers Trust Company - Pyramid Open End GIC Fund and Treasury
Yield Plus (SAFTY Funds) at a guaranteed effective annual rate of interest for
a specified period of time.
Administrative expenses incurred are borne by the Company, and fees associated
with the funds are borne by the participants.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements.
Estimates also affect the reported amounts of additions and deductions during
the reporting period. Actual results could differ from those estimates.
3. Tax Status
The Internal Revenue Service has ruled that the Plan qualifies under Section
401(a) of the Code and that the trust, therefore, is exempt from taxation.
Once qualified, the Plan is required to operate in conformity with the IRC and
the Employee Retirement Income Security Act of 1974 to maintain its
qualification. The Administrative Committee is not aware of any course of
action or series of events that have occurred that might adversely affect the
Plan's qualified status.
<PAGE> 10
Crowley, Milner and Company Profit Sharing Plan
Employee Identification/Plan #: 38-0454910/002
Item 27a - Schedule of Assets Held for Investment Purposes
December 31, 1996
<TABLE>
<CAPTION>
Description of Investment Including
Identity of Issue, Borrower, Maturity Date, Rate of Interest,
Lessor or Similar Party Collateral, Par or Maturity Value
- --------------------------------------------------------------------------------------------------------------------
<S> <C>
*Royal Maccabees Government Securities Fund Government Securities Account-37,102 units
*Royal Maccabees Intermediate Bond Fund Intermediate Bond Account-40,233 units
*Royal Maccabees Equity Income Fund Equity Income Account-21,015 units
*Royal Maccabees Equity Growth Fund Equity Growth Account-26,132 units
*Royal Maccabees International Equity Index International Equity Index Account-11,775 units
*Royal Maccabees Guaranteed Investment Contract Flexible Funding Contract Guaranteed
through 1/31/99 effective annual rate
of credited interest of 9.25%
*Royal Maccabees Safety + #2 Fund Flexible Funding Contract effective annual
rate of credited interest of 5.54%
*Royal Maccabees Safety + #3 Fund Flexible Funding Contract effective annual
rate of credited interest at 7.26%
*Royal Maccabees Safety + #4 Fund Flexible Funding Contract effective annual
rate of credited interest of 7.36%
*Royal Maccabees Saf-Tr #5 Fund Flexible Funding Contract effective annual
rate of credited interest of 6.00%
*Royal Maccabees S&P 500 Fund S&P 500 Account-8,894 units
*Royal Maccabees Money Market Fund Money Market Account-12,347 units
*Royal Maccabees Short Term Investment Short Term Fund
*Crowley Milner and Company Crowley Milner and Company Stock-22,154
shares
*Participant loans Various loans 7%-11%
<CAPTION>
Identity of Issue, Borrower, Cost of Proceeds of Current
Lessor or Similar Party Acquisition Disposition Value
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
*Royal Maccabees Government Securities Fund $ 526,612 $ 526,612
*Royal Maccabees Intermediate Bond Fund 656,764 656,764
*Royal Maccabees Equity Income Fund 1,063,964 1,063,964
*Royal Maccabees Equity Growth Fund 1,225,893 1,225,893
*Royal Maccabees International Equity Index 161,924 161,924
*Royal Maccabees Guaranteed Investment Contract 1,658,799
*Royal Maccabees Safety + #2 Fund 79,697
*Royal Maccabees Safety + #3 Fund 201,547
*Royal Maccabees Safety + #4 Fund 166,488
*Royal Maccabees Saf-Tr #5 Fund 127,827
*Royal Maccabees S&P 500 Fund 624,668 624,668
*Royal Maccabees Money Market Fund 346,534 346,534
*Royal Maccabees Short Term Investment 656,776 656,776
*Crowley Milner and Company 231,649 231,649
---------- ----------
Total investments $7,729,142 $ $7,729,142
========== ========= ==========
*Participant loans $ 144,804 $ $ 144,804
========== ========= ==========
</TABLE>
There were no investment assets reportable as acquired and disposed of during
the year.
*Party-in-interest.
<PAGE> 11
Crowley, Milner and Company Profit Sharing Plan
Employee Identification/Plan #: 38-0454910/002
Item 27d - Schedule of Reportable Transactions
Year ended December 31, 1996
<TABLE>
<CAPTION>
Expense
Description of Asset (Including Incurred
Interest Rate and Maturity in Purchase Selling Lease With
Identity of Party Involved Case of a Loan) Price Price Rental Transaction
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Category iii) A series of transactions
involving securities of the same issue
which, when aggregated, involve an
amount in excess of 5% of the current
value of plan assets:
Royal Maccabees Life Insurance
Company SAFTY + #1
12 purchases $ 57,343
118 sales $ 963,899
S&P 500
77 purchases 264,735
66 sales 173,653
Equity Growth
73 purchases 335,210
92 sales 172,779
Short-Term Investments
76 purchases 720,084
59 sales 137,816
<CAPTION>
Current
Value of
Description of Asset (Including Cost Asset on Net
Interest Rate and Maturity in of Transaction Gain
Identity of Party Involved Case of a Loan) Asset Date (Loss)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Category iii) A series of transactions
involving securities of the same issue
which, when aggregated, involve an
amount in excess of 5% of the current
value of plan assets:
Royal Maccabees Life Insurance
Company SAFTY + #1
12 purchases $ 57,343 $ 57,343
118 sales $ 963,899 *
S&P 500
77 purchases 264,735 264,735
66 sales 173,653 *
Equity Growth
73 purchases 335,210 335,210
92 sales 172,779 *
Short-Term Investments
76 purchases 720,084 720,084
59 sales 137,816 *
</TABLE>
There were no category i) ii) or iv) reportable transactions.
*Trustee does not track cost. All investments are repriced to market on a
daily basis.
<PAGE> 12
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
Crowley, Milner and Company, as the employer-sponsor of the Plan, has duly
caused this annual report to be signed on its behalf by the undersigned
thereunto duly authorized.
SECOND AMENDED AND RESTATED CROWLEY,
MILNER & COMPANY PROFIT SHARING PLAN
EFFECTIVE FEBRUARY 1, 1990
By: CROWLEY, MILNER AND COMPANY
By: /S/ John R. Dallacqua
------------------------------
John R. Dallacqua, Vice
President-Finance
Dated: September 2, 1997
<PAGE> 13
EXHIBIT INDEX
Exhibit
No. Description
23 Consent of Independent Auditors.
<PAGE> 1
EXHIBIT 23
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statement
(Form S-8 No. 33-61207) pertaining to the Profit Sharing Plan of Crowley,
Milner and Company of our report dated June 13, 1997, with respect to the
financial statement and schedules of the Crowley, Milner and Company Profit
Sharing Plan included in this Annual Report (Form 11-K) for the year ended
December 31, 1996.
/s/ Ernst & Young LLP
July 28, 1997
