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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER Section 13 or 15(d) of
the Securities Exchange Act of 1934
July 30, 1994 1-7208
For the quarterly period ended Commission file number
DUPLEX PRODUCTS INC.
(Exact name of registrant as specified in its charter)
Delaware 36-2109817
(State or other jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification Number)
1947 Bethany Road, Sycamore, IL 60178
(Address of principal executive offices) (Zip code)
(815) 895-2101
(Registrant's telephone number, including area code)
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 August 24, 1994:
Common stock - $1.00 par value 7,573,761 Shares Outstanding.
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Item 1. FINANCIAL STATEMENTS
DUPLEX PRODUCTS INC.
CONSOLIDATED CONDENSED BALANCE SHEET
(Amounts in Thousands)
<TABLE>
<CAPTION>
ASSETS
July 30,1994 October 30,1993
(Unaudited) (Audited)
------------ ---------------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 15,809 $ 18,419
Receivables 76,134 76,021
Inventories 7,048 9,107
Income tax refund receivable 966 1,537
Deferred income tax benefits 7,100 3,500
-------- --------
Total current assets 107,057 108,584
Property, plant, and equipment-net 41,217 44,511
Other assets 2,875 2,964
-------- --------
Total Assets $151,149 $156,059
======== ========
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C> <C>
Current liabilities:
Current portion of long-term debt $ 1,212 $ 1,562
Accounts payable 7,839 10,505
Accrued liabilities 22,266 13,145
-------- --------
Total current liabilities 31,317 25,212
Long term debt 6,094 7,150
Deferred liabilities 6,420 6,434
Stockholder's equity 107,318 117,263
-------- --------
Total Liabilities & Equity $151,149 $156,059
======== ========
</TABLE>
The accompanying notes are an integral part of these consolidated condensed
financial statements.
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DUPLEX PRODUCTS INC.
CONSOLIDATED CONDENSED INCOME STATEMENT (Unaudited)
(Amounts in Thousands-Except Per Share)
<TABLE>
<CAPTION>
Third Quarter Nine Months
7/30/94 7/31/93 7/30/94 7/31/93
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net sales $ 64,744 $ 61,870 $ 198,970 $ 191,803
Cost of goods sold 49,007 46,169 152,111 143,455
---------- ---------- ---------- ----------
Gross profit 15,737 15,701 46,859 48,348
Selling and administrative
expenses 16,536 14,789 49,390 46,201
Restructuring costs -- -- 12,000 1,500
---------- ---------- ---------- ----------
Operating profit (loss) (799) 912 (14,531) 647
Other income (expenses):
Interest expense (147) (150) (442) (450)
Other income 138 266 380 784
---------- ---------- ---------- ----------
(9) 116 (62) 334
---------- ---------- ---------- ----------
Earnings (loss) before income
taxes (credits) (808) 1,028 (14,593) 981
Income taxes (credits) (275) 391 (5,682) 373
---------- ---------- ---------- ----------
Net earnings (loss) before
cumulative effect of a change in
accounting for income taxes (533) 637 (8,911) 608
Cumulative effect of a change in
accounting for income taxes --- --- --- 1,000
---------- ---------- ---------- ----------
NET EARNINGS (LOSS) $ (533) $ 637 $ (8,911) $ 1,608
========== ========== ========== ==========
Net earnings (loss) per share
before cumulative effect of a
change in accounting for
income taxes $(.07) $.08 $(1.17) $ .08
Net earnings per share cumulative
effect of a change in accounting
for income taxes --- --- --- .13
---------- ---------- ---------- ----------
NET EARNINGS (LOSS) PER SHARE $(.07) $.08 $(1.17) $.21
========== ========== ========== ==========
Average common shares 7,577,000 7,722,000 7,604,000 7,744,000
</TABLE>
The accompanying notes are an integral part of these consolidated condensed
financial statements.
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DUPLEX PRODUCTS INC.
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS (Unaudited)
(Amounts in Thousands-Except Per Share)
<TABLE>
<CAPTION>
Nine Months
-----------
7/30/94 7/31/93
------- -------
<S> <C> <C>
Cash flows from operating activities:
Net earnings (loss) $(8,911) $ 1,608
Depreciation and amortization 5,080 5,245
Restructuring costs 12,000 1,500
Other items (7,587) (4,655)
------- -------
Net cash flows used in operating activities 582 3,698
Cash flows from investing activities:
Property, plant, and equipment additions (1,786) (452)
------- -------
Net cash used in investing activities (1,786) (452)
------- -------
Cash flows from financing activities:
Payments on long-term obligations (1,406) (1,426)
------- -------
Net cash used in financing activities (1,406) (1,426)
------- -------
Net increase (decrease) in cash
and cash equivalents (2,610) 1,820
Cash and cash equivalents at beginning of period 18,419 22,326
------- -------
Cash and cash equivalents at end of period $15,809 $24,146
======= =======
</TABLE>
The accompanying notes are an integral part of these consolidated condensed
financial statements.
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DUPLEX PRODUCTS INC.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
Note 1. The Consolidated condensed financial statements included herein have
been prepared by the Corporation, without audit, pursuant to the rules
and regulations of the Securities and Exchange Commission. Certain
information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to such rules and
regulations, although the Corporation believes that the disclosures
are adequate to make the information presented not misleading.
Note 2. These statements reflect all adjustments (which include only normal
recurring accruals) necessary, in the opinion of management, for a
fair presentation of the information contained therein. It is
suggested that these condensed financial statements be read in
conjunction with the financial statements and notes thereto included
in the Corporation's annual report on Form 10-K for the year ended
October 30, 1993.
Note 3. Operating results for interim periods are not necessarily indicative
of annual results.
Note 4. Earnings per share are based on the weighted average number of common
shares outstanding.
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DUPLEX PRODUCTS INC.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The Company's 1993 Annual Report to Stockholders contains management's
discussion and analysis of financial condition and results of operations at,
and for the year ended, October 30, 1993. The following discussion and
analysis covers material changes in the Company's financial condition from
October 30, 1993, and the end of the first nine months of 1993 to July 30,
1994, while the analysis of results of operations compares the results for the
Third quarter and nine months ended July 30, 1994, with the quarter and nine
months ended July 31, 1993.
Liquidity and Capital Resources
No significant changes occurred relative to liquidity or capital during the
first nine months of fiscal 1994 or from the end of the first nine months of
1993 to July 30, 1994.
Results of Operations
For the third quarter ended July 30, 1994, the net loss was $533,000, equal to
$.07 per share, compared with net income of $637,000, or $.08 per share in the
third 1993 quarter. Sales were $64,744,000, an increase of 5% from
$61,870,000, in the corresponding period last year.
For the first nine months of the year, the net loss was $8,911,000, equal to
$1.17 per share compared with net income of $1,608,000, or 21 cents per share
in 1993. Earnings through nine months were reduced by pretax restructuring
charges of $12,000,000 and $1,500,000, respectively in fiscal 1994 and 1993.
Sales increased 4% to $198,970,000 from $191,803,000.
The company said that although it is always disappointing to report a loss,
even when it is anticipated, the results for the third quarter are encouraging.
The company's operating loss narrowed to $799,000, compared with a loss of
$1,936,000 in the second quarter of fiscal 1994. Additionally, Duplex reported
higher sales for the third quarter in a row.
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Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (continued)
The company's restructuring plan is on schedule and is expected to lead to
significant cost savings over the next several months. The plan includes the
closing of the Orlando, Florida, plant this month and the Dillsburg,
Pennsylvania, plant in October.
The company plans to increase sales of value-added services and products such
as forms management, labels, and imaging and mailing. The company reports that
sales of imaging and mailing in the quarter were up 29% from the prior year.
Part 3. Other Information
Item 6. Reports on Form 8-K
No report on Form 8-K was filed for the quarter ended July 30, 1994.
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DUPLEX PRODUCTS INC.
FORM 10-Q
For the Quarterly Period Ended July 30, 1994
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.
DUPLEX PRODUCTS INC
August 26, 1994 /s/ BEN L. McSWINEY
Date Ben L. McSwiney
President and Chief Executive Officer
August 26, 1994 /s/ ANDREW N. PETERSON
Date Andrew N. Peterson
Vice President-Finance and Chief Financial Officer
8
