<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15 (d) of
THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended July 1, 1995 Commission File No. 0-11917
THE DAVEY TREE EXPERT COMPANY
(Exact name of Registrant as specified in its charter)
Ohio 34-0176110
(State of Incorporation) (IRS Employer Identification No.)
1500 North Mantua Street
P. O. Box 5193
Kent, OH 44240-5193
(Address of principal executive offices) (Zip Code)
Regstrant's telephone number, including area code: (216) 673-9511
Number of Common Shares Outstanding as of August 11, 1995: 2,346,952
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 ninety (90) days.
YES X NO
--- ---
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THE DAVEY TREE EXPERT COMPANY
INDEX
-----
<TABLE>
<CAPTION>
Page No.
--------
<S> <C> <C>
PART I: FINANCIAL INFORMATION
Item 1: Consolidated Balance Sheets - Periods Ended July 1,
1995, July 2, 1994 and December 31, 1994 3
Consolidated Statements of Income - Three Months
Ended July 1, 1995 and July 2, 1994 4
Consolidated Statements of Income - Six Months
Ended July 1, 1995 and July 2, 1994 5
Consolidated Statements of Cash Flows - Six Months
Ended July 1, 1995 and July 2, 1994 6
Notes to Consolidated Financial Statements 7
Item 2: Management's Discussion and Analysis of
Financial Condition and Results of Operations 9
PART II: OTHER INFORMATION
Item 4: Submission of Matters to a Vote of Security Holders 12
Item 6: Exhibits and Reports on Form 8-K 12
</TABLE>
2
<PAGE> 3
PART I. FINANCIAL INFORMATION
------------------------------
Item 1: Financial Statements
THE DAVEY TREE EXPERT COMPANY
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
<TABLE>
<CAPTION>
July 1, July 2, Dec. 31,
1995 1994 1994
------------ ------------ --------
(Unaudited)
<S> <C> <C> <C>
ASSETS
------
CURRENT ASSETS
Cash and Cash Equivalents $ 665 $ 1,033 $ 973
Accounts Receivable 37,218 32,900 29,313
Refundable Income Taxes --- 897 ---
Operating Supplies 2,458 2,881 2,568
Prepaid Expenses 2,993 1,450 3,133
Deferred Income Taxes 1,911 2,086 1,898
------------ ------------ ------------
Total Current Assets 45,245 41,247 37,885
------------ ------------ ------------
OTHER ASSETS AND INTANGIBLES 7,096 5,453 7,470
PROPERTY AND EQUIPMENT
Gross Property and Equipment 158,688 155,983 154,890
Accumulated Depreciation 103,702 97,182 100,466
------------ ------------ ------------
Net Property and Equipment 54,986 58,801 54,424
------------ ------------ ------------
TOTAL ASSETS $ 107,327 $ 105,501 $ 99,779
============ ============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES
Notes Payable to Banks $ 146 $ 639 $ 99
Accounts Payable 12,019 10,759 9,260
Accrued Liabilities 8,766 9,093 6,396
Accrued Workers' Compensation 5,048 2,041 4,396
Income Taxes Payable 1,381 --- 1,307
Current Maturities of Long-Term Debt 8,460 5,256 3,844
------------ ------------ ------------
Total Current Liabilities $ 35,820 $ 27,788 $ 25,302
------------ ------------ ------------
LONG-TERM DEBT
Notes Payable 8,000 8,000 8,000
Term Note Agreement 10,200 12,000 12,000
Revolving Credit Agreement 7,400 9,300 2,700
Long-Term Debt of ESOT 145 241 193
3% Community Development Block Grant --- 250 ---
Term Loans 239 1,307 1,401
Subordinated Notes - Stock Redemption 769 308 212
Other 334 479 462
------------ ------------ ------------
27,087 31,885 24,968
Less: Current Maturities 8,460 5,256 3,844
------------ ------------ ------------
Total Long-Term Debt 18,627 26,629 21,124
------------ ------------ ------------
DEFERRED INCOME TAXES 3,256 4,560 3,256
------------ ------------ ------------
INSURANCE LIABILITIES 5,491 3,470 5,050
------------ ------------ ------------
OTHER LIABILITIES 662 591 516
------------ ------------ ------------
TOTAL LIABILITIES $ 63,856 $ 63,038 $ 55,248
------------ ------------ ------------
SHAREHOLDERS' EQUITY
Preferred Shares - No Par Value;
Authorized 4,000,000 Shares; None Issued $ --- $ --- $ ---
Common Shares - $1.00 Par Value;
Authorized 12,000,000 Shares; Issued
4,364,220 Shares at July 1, 1995,
July 2, 1994 and December 31, 1994 4,364 4,364 4,364
Additional Paid-in Capital 7,704 7,326 7,531
Retained Earnings 63,756 59,681 62,851
------------ ------------ ------------
75,824 71,371 74,746
LESS:
Treasury Shares at cost: 2,020,481 Shares
at July 1, 1995; 1,885,061 Shares at
July 2, 1994; and 1,921,217 Shares at
December 31, 1994 (31,640) (27,808) (29,416)
Subscriptions Receivable From Employees (568) (859) (606)
Future Contributions to ESOT (145) (241) (193)
----------- ----------- -----------
TOTAL SHAREHOLDERS' EQUITY $ 43,471 $ 42,463 $ 44,531
----------- ----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 107,327 $ 105,501 $ 99,779
=========== =========== ===========
See Notes to Consolidated Financial Statements
</TABLE>
3
<PAGE> 4
THE DAVEY TREE EXPERT COMPANY
-----------------------------
CONSOLIDATED STATEMENTS OF INCOME
---------------------------------
Three Months Ended July 1, 1995 and July 2, 1994
------------------------------------------------
(Dollars in Thousands Except Earnings Per Share Amounts)
------------------------------------------------------
(UNAUDITED)
---------
<TABLE>
<CAPTION>
July 1, 1995 July 2, 1994
-------------------------- -----------------------
<S> <C> <C> <C> <C>
REVENUES $ 61,277 100.0% $ 59,247 100.0%
-------------- ------- ----------- -------
COSTS AND EXPENSES
Operating 41,062 67.0 39,681 67.0
Selling 7,429 12.1 7,096 12.0
General and Administrative 3,635 5.9 3,797 6.4
Depreciation 3,028 5.0 3,260 5.5
-------------- ------- ----------- -------
TOTAL COSTS AND EXPENSES 55,154 90.0 53,834 90.9
-------------- ------- ----------- -------
INCOME BEFORE INTEREST, OTHER
EXPENSE AND INCOME TAXES 6,123 10.0 5,413 9.1
INTEREST EXPENSE (705) (1.2) (671) (1.1)
OTHER EXPENSE - NET (65) (0.1) (105) (0.2)
-------------- ------- ----------- -------
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 5,353 8.7 4,637 7.8
INCOME TAXES 2,195 3.6 1,836 3.1
-------------- ------- ----------- -------
INCOME FROM CONTINUING OPERATIONS 3,158 5.1 2,801 4.7
DISCONTINUED OPERATIONS, NET (47) (0.1)
-------------- ------- ----------- -------
NET INCOME $ 3,158 5.1% $ 2,754 4.6%
============== ======= =========== =======
INCOME PER COMMON SHARE FROM
CONTINUING OPERATIONS $ 1.31 $ 1.08
============== ===========
NET INCOME PER COMMON SHARE $ 1.31 $ 1.06
============== ===========
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING, INCLUDING
COMMON STOCK EQUIVALENTS 2,420,013 2,591,053
============== ===========
</TABLE>
See Notes to Consolidated Financial Statements
4
<PAGE> 5
THE DAVEY TREE EXPERT COMPANY
-----------------------------
CONSOLIDATED STATEMENTS OF INCOME
---------------------------------
Six Months Ended July 1, 1995 and July 2, 1994
----------------------------------------------
(Dollars in Thousands Except Earnings Per Share Amounts)
------------------------------------------------------
(UNAUDITED)
---------
<TABLE>
<CAPTION>
July 1, 1995 July 2, 1994
-------------------------- -------------------------
<S> <C> <C> <C> <C>
REVENUES $ 107,659 100.0% $ 103,902 100.0%
-------------- ------- ------------- ---------
COSTS AND EXPENSES
Operating 77,022 71.5 74,708 71.9
Selling 13,978 13.0 13,043 12.5
General and Administrative 7,352 6.8 7,722 7.4
Depreciation 6,090 5.7 6,397 6.2
-------------- ------- ------------- ---------
TOTAL COSTS AND EXPENSES 104,442 97.0 101,870 98.0
-------------- ------- ------------- ---------
INCOME BEFORE INTEREST, OTHER
EXPENSE AND INCOME TAXES 3,217 3.0 2,032 2.0
INTEREST EXPENSE (1,232) (1.1) (1,135) (1.1)
OTHER EXPENSE - NET (152) (0.1) (220) (0.2)
-------------- ------- ------------- ---------
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 1,833 1.8 677 0.7
INCOME TAXES 752 0.7 268 0.3
-------------- ------- ------------- ---------
INCOME FROM CONTINUING OPERATIONS 1,081 1.1 409 0.4
DISCONTINUED OPERATIONS, NET 236 0.2 (140) (0.1)
-------------- ------- ------------- ---------
NET INCOME $ 1,317 1.3% $ 269 0.3%
============== ======= ============= =========
INCOME PER COMMON SHARE FROM
CONTINUING OPERATIONS $ 0.44 $ 0.16
============== =============
NET INCOME PER COMMON SHARE $ 0.54 $ 0.10
============== =============
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING, INCLUDING
COMMON STOCK EQUIVALENTS 2,453,209 2,608,824
============== =============
</TABLE>
See Notes to Consolidated Financial Statements
5
<PAGE> 6
THE DAVEY TREE EXPERT COMPANY
-----------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
-------------------------------------
FOR SIX MONTHS ENDED JULY 1, 1995 AND JULY 2, 1994
--------------------------------------------------
(Dollars in Thousands)
--------------------
(UNAUDITED)
---------
<TABLE>
<CAPTION>
July 1, July 2,
1995 1994
----------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 1,317 $ 269
Adjustments to Reconcile Net Income to
Net Cash Provided by Operating Activities:
Depreciation and Amortization 6,404 6,564
Deferred Income Taxes (13) (22)
----------- -----------
7,708 6,811
Change in Operating Assets and Liabilities:
Accounts Receivable (7,905) (4,612)
Refundable Income Taxes (897)
Operating Supplies 110 (236)
Prepaid Expenses 140 603
Other Assets 150 (578)
Accounts Payable 2,759 (644)
Accrued Liabilities 2,370 3,761
Accrued Workers' Compensation
& Insurance Liabilities 1,093 (55)
Income Taxes Payable 74 (466)
Other Liabilities 245 (366)
----------- -----------
Net Cash Provided by Operating Activities 6,744 3,321
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from Sales of Property and Equipment 561 216
Capital Expenditures:
Land and Buildings (432)
Equipment (6,739) (5,877)
----------- -----------
Net Cash Used in Investing Activities (6,610) (5,661)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
ESOT Payment of Debt Guaranteed by Company 48 48
Net Borrowings Under Notes Payable, Bank 47 559
Principal Payments of Long-Term Debt (2,333) (353)
Proceeds from Issuance of Long-Term Debt 4,452 3,810
Sales of Treasury Shares 718 1,067
Receipts from Stock Subscriptions 38 116
Dividends Paid (643) (652)
Repurchase of Common Shares (2,769) (2,244)
----------- -----------
Net Cash (Used in)/Provided by Financing Acitivities (442) 2,351
----------- -----------
NET CHANGE IN CASH AND EQUIVALENTS (308) 11
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 973 1,022
----------- -----------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 665 $ 1,033
=========== ===========
</TABLE>
See Notes to Consolidated Financial Statements
6
<PAGE> 7
THE DAVEY TREE EXPERT COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Six Months Ended July 1, 1995
UNAUDITED
Note 1 - Basis of Presentation
---------------------
The accompanying unaudited Consolidated Financial Statements as of
July 1, 1995 and July 2, 1994 have been prepared in accordance with the
instructions to Form 10-Q, but do not include all 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.
Note 2 - Discontinued Operations
-----------------------
On March 31, 1995, the Registrant sold substantially all of the
operating assets, excluding real estate, of its interior plant care business to
Barefoot Grass Lawn Service, Inc., for approximately $1,300,000. The sale
agreement provided for settlement of the purchase price in cash on April 3,
1995.
Amounts related to the discontinued operations and recognized in the
financial statements are as follows:
<TABLE>
<CAPTION>
Six Six
Months Ended Months Ended
July 1, 1995 July 2, 1994
----------------- ---------------
<S> <C> <C>
Revenues $ 555,000 $ 1,256,000
================= ===============
Loss from discontinued operations, net of
applicable income tax credits of $71,000 in
1995 and $92,000 in 1994 $ (102,000) $ (140,000)
Gain on sale of assets, less applicable
income taxes of $234,000 338,000
----------------- ---------------
Discontinued operations, net $ 236,000 $ (140,000)
================= ===============
Assets and liabilities as of July 1, 1995:
Remaining assets:
Real estate, net 465,000
-----------------
Total assets $ 465,000
=================
Liabilities which remain the obligation
of the Registrant:
Notes payable and long-term debt,
including current portion $ 80,000
Accounts payable 45,000
Accrued liabilities and other 76,000
Income Taxes Payable 191,000
-----------------
Total liabilities $ 392,000
=================
</TABLE>
7
<PAGE> 8
Note 3 - Acquisition
--------------------
Effective January 1, 1995, the Registrant acquired the common stock of
B. D. Wilhelm Company, a residential and commercial tree and lawn care company
in Denver, Colorado. The Registrant recorded the approximate $1,650,000 price
using the purchase method of accounting and has included the first six months
results of operations in its consolidated financial statements. Intangible
assets acquired as a result of this purchase will be amortized over 15 years
using the straight-line method.
Note 4 - Results of Operations
------------------------------
Due to the seasonal nature of some of the Company's services, the
results of operations for the quarters ended July 1, 1995 and July 2, 1994 are
not necessarily indicative of the results to be expected for the full year.
Note 5 - Dividends
------------------
On June 10, 1995 the Registrant paid a $.14 per share dividend to all
shareholders of record at June 1, 1995. This compares to a $.13 per share
dividend paid in the second quarter of 1994.
Note 6 - Reclassifications
--------------------------
Reclassifications have been made to the prior year financial
statements to conform to the current year presentation.
8
<PAGE> 9
THE DAVEY TREE EXPERT COMPANY
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
--------------------------------------------------------------------
AND RESULTS OF OPERATIONS
-------------------------
Six Months Ended July 1, 1995
-----------------------------
Liquidity and Capital Resources
-------------------------------
Operating activities provided $6,744,000 in cash during the first half
of 1995, an increase of $3,423,000 when compared to the $3,321,000 provided in
the first six months of 1994. The improvement from last year was mainly
attributable to increases in net income, accounts payable, accrued workers'
compensation and insurance liabilities, a net increase in amounts payable for
income taxes, and a decrease in other assets. Cash provided from these sources
were partially offset by an increase in accounts receivable and a lower
increase in accrued liabilities.
The Registrant's seasonal net income of $1,317,000 increased
$1,048,000 when compared to the prior year. The increase was primarily due to
higher income in most of the Registrant's service lines and to a lesser extent
was impacted by a gain on the disposal of certain assets associated with its
Interiorcare operations. (See note #2 to the Financial Statements on page 7 of
the quarterly report on Form 10-Q.) The improvement in income realized by the
Registrant's Residential and Commercial service lines continues to be a
reflection of improved economic conditions generally. In addition, significant
operating profit improvement has been experienced by the Registrant's Western
Canadian and Western U.S. Utility operations due largely to improvements in
productivity associated with certain contracts. The increase in net income was
also the primary factor contributing to the net increase in amounts payable for
income taxes. In that the third quarter remains a significant component of the
Registrant's prime sales season, it is difficult to draw conclusions regarding
annual performance, although earnings are anticipated to be somewhat higher
than in 1994.
Accounts payable increased $2,759,000, a net change of $3,403,000 when
compared to the $644,000 decrease in the first six months of 1994. The
increase was due chiefly to an extension granted to the Registrant on the
timing of a retrospective casualty insurance premium payment. To a lesser
extent, the net increase was due to higher equipment purchases entered into
during the fourth quarter of 1993 and paid the first quarter of 1994, as well
as a slight increase in payment cycles initiated during the latter half of 1994
and continued in the current year.
Cash provided by other assets of $150,000 reflects an improvement of
$728,000 when compared to the $578,000 used in the prior year. The favorable
change was primarily attributable to amounts earned under a contract with two
of the Registrant's Utility customers, as well as an advance funded according
to terms of the Big Tree Company, Inc., acquisition agreement, both of which
occurred in the prior year.
Accrued workers' compensation and insurance liabilities provided
$1,093,000, a net increase of $1,148,000 from last year, due mainly to changes
in estimates of ultimate costs resulting from further maturity of the related
claims.
9
<PAGE> 10
Although accounts receivable increased $7,905,000 since December,
1994, accounts receivable days outstanding declined 2.0 days, but compared to
July 2, 1994 increased 3.0 days to 52.5 days. The increase in accounts
receivable was primarily attributable to amounts due from one of the
Registrant's Western Utility customers, which had been subject to audit under
terms of the contract. The Registrant has been informed that the audit has
been completed satisfactorily and, therefore, anticipates collection during the
third quarter. The increase was also the result of adding the accounts
receivable of the B.D. Wilhelm Company acquired in January, 1995, along with an
overall increase in existing Residential and Commercial service line revenues.
The Registrant is not concerned as to the collectability of the accounts, and
therefore considers no allowance necessary. It also is continuing its efforts
to attain permanent reductions in both days and dollars outstanding.
Accrued liabilities provided $2,370,000 in cash flows, a $1,391,000
reduction when compared to the $3,761,000 provided in the first half of 1994.
The decrease was mainly a result of lower accruals for period costs associated
with the Registrant's casualty liability exposures, group health insurance and
interest, partially offset by higher payroll and related tax accruals.
For the first six months of 1995, investing activities used
$6,610,000, an increase of $949,000 when compared to the prior year's use of
$5,661,000. The change was primarily due to higher capital expenditures,
partially offset by the sale of certain Interiorcare assets noted previously.
At approximately $10,000,000 for the current year, the budget for capital
expenditures is consistent with the Registrant's plan to expand services,
maintain equipment on existing operations, and provide for the ongoing purchase
of land and branch office facilities.
Financing activities for the first half of the year used $442,000 in
cash, an increase of $2,793,000 when compared to the $2,351,000 provided last
year. The net change was primarily due to principal payments of $1,800,000 on
the Registrant's term note agreement, as well as the payment of a bank term
loan by one of the Registrant's subsidiaries.
At July 1, 1995, the Registrant's principal source of liquidity
consisted of $665,000 in cash and cash equivalents; short-term lines of credit
and amounts available to be borrowed from banks via notes payable totaling
$11,389,000, of which $8,146,000 had been drawn at July 1, 1995; and a
revolving credit agreement with a bank in the amount of $15,000,000, of which
$7,400,000 had been drawn at July 1, 1995. Including the outstanding balance
on the term note agreement of $10,200,000, the Registrant's credit facilities
now total $36,589,000. The Registrant believes its available credit will
exceed credit requirements, and that its liquidity is adequate.
Results of Operations
---------------------
Revenues of $107,659,000 for the first six months of 1995 increased
$3,757,000 when compared to the same period in 1994. Similarly, second quarter
revenues of $61,277,000 exceeded second quarter 1994 revenues by $2,030,000.
The increases over 1994 are mainly due to increased revenues in the
Registrant's Residential and Commercial services and its Western Utility
operations. As previously indicated, Residential and Commercial services
continue to be positively influenced by favorable economic conditions, as well
as through heightened sales efforts. The increase in Western Utility revenues
is primarily attributable to production gains on certain contracts, coupled
with contracts obtained through the ordinary course of competitive bidding. As
a whole, however, the Registrant's Utility services continue to be somewhat
affected by budget reductions on existing Utility contracts and discontinued
Utility contracts experienced in the ordinary course of competitive bidding.
10
<PAGE> 11
Operating costs of $77,022,000 for the first six months increased
$2,314,000 when compared to last year, but as a percentage of revenues declined
.4% to 71.5%. Operating costs for the quarter increased $1,381,000 to
$41,062,000, but as a percentage of revenues remained constant at 67.0%. The
year-to-date percentage decrease was primarily a reflection of lower direct
labor, materials and group health insurance costs, along with shut down and
relocation costs incurred in 1994 associated with discontinued Utility
contracts. The Registrant anticipates that operating costs will remain, as a
percentage of revenues, slightly below 1994 levels.
Selling costs increased by $333,000 in the quarter to $7,429,000 and
increased slightly as a percentage of revenues to 12.1%. Year to date, these
costs increased by $935,000 to $13,978,000, and as a percentage of revenues
rose .5% to 13.0%. The main factors affecting these increases were higher
Residential sales commissions and related payroll tax expense, partially offset
by lower advertising costs.
General and Administrative (G&A) expenses in the quarter of $3,635,000
decreased $162,000 or .5% as a percentage of revenues to 5.9%. For the year,
G&A declined $370,000 to $7,352,000, or .6% to 6.8% as a percentage of
revenues. The decrease was accomplished primarily through corporate cost
reductions, most notably in office and administrative salaries and national
advertising.
Depreciation and amortization expense of $6,090,000 was $307,000 or
.5% as a percentage of revenues lower than in 1994. Quarterly results reflected
a $232,000 decrease to $3,028,000, or a .5% decrease to 5.0% as a percentage of
revenues. The lower depreciation level is generally a function of lower
capital expenditures over the past two years. The Registrant anticipates that
1995 depreciation expense will approximate $13,000,000.
Interest expense in the first six months of 1.1%, or $1,232,000,
remained at the same percentage level as the prior year, and for the quarter
increased .1% to 1.2%. Despite a reduction in the Registrant's long-term
debt, interest charges exceed prior year levels primarily as a result of an
almost 300 basis point rise in interest rates.
As a result of the above factors, the first six months income from
continuing operations before income taxes increased $1,156,000 to $1,833,000 or
1.8% as a percentage of revenues. For the quarter, income of $5,353,000 or
8.7% as a percentage of revenues, increased $716,000 or .9% as a percentage of
revenues. Effective income tax rates of 41.0% and 39.6% were used to compute
the tax provisions for 1995 and 1994, respectively. After reflecting a net
$236,000 contributed by the Registrant's discontinued Interiorcare operations,
the Registrant's net income of $1,317,000 increased $1,048,000 or 1.0% as a
percentage of revenues when compared to 1994.
The net income per common share from continuing operations and the net
income per common share was calculated by using the weighted average number of
common shares outstanding, including common stock equivalents during the
period.
11
<PAGE> 12
THE DAVEY TREE EXPERT COMPANY
PART II. OTHER INFORMATION
---------------------------
Item 4: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
On May 16, 1995, the Registrant held its annual meeting of
shareholders. The shareholders voted to:
a. Set the number of directors to ten and elect the following persons
to serve as directors for a term to expire on the date of the
annual meeting in 1998:
Eugene W. Haupt
James H. Miller
R. Cary Blair
Item 6: EXHIBITS AND REPORTS 0N FORM 8-K
(a) Exhibits
27 Financial Data Schedule
(b) Reports on Form 8-K
No reports on Form 8-K have been filed during the quarter for
which this report is filed.
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.
THE DAVEY TREE EXPERT COMPANY
BY: /s/David E. Adante
------------------------------
David E. Adante
Executive Vice President, CFO and
Secretary-Treasurer
BY: /s/Bradley L. Comport
------------------------------
Bradley L. Comport
Corporate Controller
August 15, 1995
12
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<CURRENCY> 0
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUL-01-1995
<EXCHANGE-RATE> 1
<CASH> 665
<SECURITIES> 0
<RECEIVABLES> 37,218
<ALLOWANCES> 0
<INVENTORY> 2,458
<CURRENT-ASSETS> 45,245
<PP&E> 158,688
<DEPRECIATION> 103,702
<TOTAL-ASSETS> 107,327
<CURRENT-LIABILITIES> 35,820
<BONDS> 0
<COMMON> 4,364
0
0
<OTHER-SE> 39,107
<TOTAL-LIABILITY-AND-EQUITY> 107,327
<SALES> 0
<TOTAL-REVENUES> 107,659
<CGS> 0
<TOTAL-COSTS> 104,442
<OTHER-EXPENSES> 152
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,232
<INCOME-PRETAX> 1,833
<INCOME-TAX> 752
<INCOME-CONTINUING> 1,081
<DISCONTINUED> 236
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,317
<EPS-PRIMARY> .54
<EPS-DILUTED> .00
</TABLE>
