UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 29, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 1-5075
EG&G, Inc.
----------
(Exact name of registrant as specified in its charter)
Massachusetts 04-2052042
------------- ----------
(State or other jurisdiction of (I.R.S. employer identification no.)
incorporation or organization)
45 William Street, Wellesley, Massachusetts 02181
-------------------------------------------------
(Address of principal executive offices)(Zip Code)
(617) 237-5100
--------------
(Registrant's telephone number, including area code)
NONE
----
(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 outstanding of each of the issuer's classes of common stock, as
of the latest practicable date:
Class Outstanding at October 27, 1996
----- -------------------------------
Common Stock, $1 par value 47,337,000
(Excluding treasury shares)
1
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
--------------------
EG&G, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
For the Three and Nine Months Ended September 29, 1996 and October 1, 1995
(Unaudited)
---------
<TABLE>
<CAPTION>
(In Thousands Except Per Share Data)
----------------------------------
Three Months Ended Nine Months Ended
-------------------------- ------------------------
<S> <C> <C> <C> <C>
SEP 29, OCT 1, SEP 29, OCT 1,
1996 1995 1996 1995
----------- ----------- ---------- ----------
Sales:
Products ................................... $215,328 $186,197 $ 639,550 $ 589,877
Services ................................... 139,419 175,405 417,895 452,206
----------- ----------- ---------- ----------
Total Sales .................................. 354,747 361,602 1,057,445 1,042,083
----------- ----------- ---------- ----------
Costs and Expenses:
Cost of sales:
Products ................................. 136,471 116,975 406,108 381,567
Services ................................. 126,374 156,973 373,198 397,051
----------- ----------- ---------- ----------
Total cost of sales ........................ 262,845 273,948 779,306 778,618
Research and development expenses .......... 8,756 10,238 31,131 30,599
Selling, general and administrative expenses 59,945 58,330 182,468 177,672
----------- ----------- ---------- ----------
Total Costs and Expenses ..................... 331,546 342,516 992,905 986,889
----------- ----------- ---------- ----------
Operating Income From Continuing Operations .. 23,201 19,086 64,540 55,194
Other Income (Expense), Net (Note 2) ......... (2,255) 1,218 (5,209) 851
----------- ----------- ---------- ----------
Income From Continuing Operations
Before Income Taxes ........................ 20,946 20,304 59,331 56,045
Provision for Income Taxes ................... 6,745 6,635 19,105 20,681
----------- ----------- ---------- ----------
Income From Continuing Operations ............ 14,201 13,669 40,226 35,364
Income From Discontinued Operations, Net of
Income Taxes (Note 3) ...................... 1,436 2,309 3,832 10,679
----------- ----------- ---------- ----------
Net Income ................................... $ 15,637 $ 15,978 $ 44,058 $ 46,043
=========== =========== ========== ==========
Earnings Per Share:
Continuing Operations ......... $ .30 $ .27 $ .85 $ .67
Discontinued Operations ....... .03 .05 .08 .20
----- ----- ----- -----
Net Income .................... $ .33 $ .32 $ .93 $ .87
===== ===== ===== =====
Cash Dividends Per Common Share ....... $ .14 $ .14 $ .42 $ .42
===== ===== ===== =====
Weighted Average Shares of Common Stock
Outstanding ......................... 47,316 50,138 47,457 52,666
The accompanying unaudited notes are an integral part of these consolidated
financial statements.
</TABLE>
2
<PAGE>
EG&G, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
As of September 29, 1996 and December 31, 1995
(Dollars in Thousands Except Per Share Data)
------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
SEP 29, DEC 31,
1996 1995
-------- --------
(Unaudited)
---------
Current assets:
Cash and cash equivalents ............................ $ 68,252 $ 76,204
Accounts receivable (Note 4) ......................... 218,447 211,903
Inventories (Note 5) ................................. 123,213 114,199
Other (Note 7) ....................................... 66,825 66,380
-------- --------
Total Current Assets ................................... 476,737 468,686
-------- --------
Property, Plant and Equipment:
At cost (Note 6) ..................................... 466,183 417,566
Accumulated depreciation and amortization ............ (284,473) (270,026)
-------- --------
Net Property, Plant and Equipment ...................... 181,710 147,540
-------- --------
Investments (Note 7) ................................... 12,712 16,072
Intangible Assets (Note 8) ............................. 114,054 123,421
Other Assets ........................................... 51,836 48,196
-------- --------
Total Assets ........................................... $837,049 $803,915
======== ========
Current Liabilities:
Short-term debt ...................................... $ 26,990 $ 5,275
Accounts payable ..................................... 73,632 72,759
Accrued expenses (Note 9) ............................ 167,358 168,671
Net liabilities of discontinued operations (Note 3) .. 5,386 3,746
-------- --------
Total Current Liabilities .............................. 273,366 250,451
-------- --------
Long-Term Debt ......................................... 114,935 115,222
Long-Term Liabilities .................................. 70,960 71,296
Contingencies
Stockholders' Equity:
Preferred stock - $1 par value, authorized
1,000,000 shares; none outstanding ................. -- --
Common stock - $1 par value, authorized
100,000,000 shares; issued 60,102,000 shares ....... 60,102 60,102
Retained earnings .................................... 522,148 498,181
Cumulative translation adjustments ................... 22,870 28,679
Net unrealized gain on marketable investments (Note 7) 426 244
Cost of shares held in treasury;
12,765,000 shares at September 29, 1996 and
12,492,000 shares at December 31, 1995 ............. (227,758) (220,260)
-------- --------
Total Stockholders' Equity ............................. 377,788 366,946
-------- --------
Total Liabilities and Stockholders' Equity ............. $837,049 $803,915
======== ========
The accompanying unaudited notes are an integral part of these consolidated
financial statements.
</TABLE>
3
<PAGE>
EG&G, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Nine Months Ended September 29, 1996 and October 1, 1995
(Unaudited)
---------
<TABLE>
<CAPTION>
(In Thousands)
------------
Nine Months Ended
--------------------
<S> <C> <C>
SEP 29, OCT 1,
1996 1995
-------- --------
Cash Flows Provided by Operating Activities:
Net income ........................................ $ 44,058 $ 46,043
Deduct net income from discontinued operations .... (3,832) (10,679)
-------- --------
Income from continuing operations ................. 40,226 35,364
Adjustments to reconcile income from continuing
operations to net cash provided by continuing
operations:
Depreciation and amortization ................. 29,794 28,097
Changes in assets and liabilities:
Decrease (increase) in accounts receivable (7,571) 20,066
Decrease (increase) in inventories ....... (10,110) 15,154
Increase in accounts payable ............. 1,295 8,721
Change in prepaid and deferred taxes ..... (1,472) (444)
Decrease in accrued expenses ............. (359) (2,874)
Change in prepaid expenses and other ..... (5,895) (9,633)
-------- --------
Net Cash Provided by Continuing Operations ............. 45,908 94,451
Net Cash Provided by Discontinued Operations ........... 5,472 25,726
-------- --------
Net Cash Provided by Operating Activities .............. 51,380 120,177
-------- --------
Cash Flows Used in Investing Activities:
Capital expenditures .............................. (62,787) (42,331)
Proceeds from sales of investment securities ...... 8,784 6,010
Other ............................................. 2,221 1,404
-------- --------
Net Cash Used in Investing Activities .................. (51,782) (34,917)
-------- --------
Cash Flows Used in Financing Activities:
Increase in commercial paper ...................... 21,940 61,276
Other debt payments ............................... (630) (4,247)
Proceeds from issuance of common stock ............ 4,395 1,015
Purchases of common stock ......................... (12,032) (123,691)
Cash dividends .................................... (19,952) (22,550)
Other ............................................. 95 (550)
-------- --------
Net Cash Used in Financing Activities .................. (6,184) (88,747)
-------- --------
Effect of Exchange Rate Changes on Cash
and Cash Equivalents ................................. (1,366) 1,351
-------- --------
Net Decrease in Cash and Cash Equivalents .............. (7,952) (2,136)
Cash and cash equivalents at beginning of period ....... 76,204 66,424
-------- --------
Cash and cash equivalents at end of period ............. $ 68,252 $ 64,288
======== ========
The accompanying unaudited notes are an integral part of these consolidated
financial statements.
</TABLE>
4
<PAGE>
EG&G, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
---------
(1) Basis of Presentation
- --------------------------
The consolidated financial statements included herein have been prepared by the
Company, without audit, pursuant to the rules and regulations of the Securities
and Exchange Commission. It is suggested that these consolidated financial
statements be read in conjunction with the financial statements and the notes
thereto included in the Company's latest annual report on Form 10-K. The balance
sheet amounts as of December 31, 1995 in this report were extracted from the
Company's audited 1995 financial statements included in the latest annual report
on Form 10-K. In the opinion of management, the unaudited consolidated financial
statements included herein contain all adjustments, consisting only of normal
recurring accruals, necessary to present fairly the financial position as of
September 29, 1996 and the results of operations for the three and nine months
ended September 29, 1996 and October 1, 1995 and the cash flows for the nine
months then ended. The results of operations are not necessarily to be
considered indicative of the results for the entire year.
Effective January 1, 1996, the company adopted the provisions of statement of
financial accounting standards (sfas) no. 123, "Accounting for stock-based
compensation." Sfas no. 123 Requires companies to account for the grant of stock
options and other stock-based compensation at fair value or to continue to
account for them at intrinsic value in accordance with accounting principles
board (apb) opinion no. 25 With disclosure of the effects of the fair value
accounting on compensation expense, net income and earnings per share on a
proforma basis. The company has elected to continue to apply APB Opinion No. 25.
(2) Other Income (Expense), Net
- --------------------------------
Other income (expense), net, consisted of the following:
(In Thousands)
------------
Three Months Ended Nine Months Ended
------------------ ------------------
SEP 29, OCT 1, SEP 29, OCT 1,
1996 1995 1996 1995
------- ------- ------- -------
Interest income ......... $ 1,148 $ 1,167 $ 2,923 $ 3,302
Interest expense ........ (3,335) (1,677) (9,751) (5,237)
Gains on investments, net 392 108 1,309 853
Other ................... (460) 1,620 310 1,933
------- ------- ------- -------
$(2,255) $ 1,218 $(5,209) $ 851
======= ======= ======= =======
5
<PAGE>
EG&G, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)
---------
(3) Discontinued Operations
- ---------------------------
The former Department of Energy (DOE) Support segment, which has provided
services under management and operations contracts, is presented as discontinued
operations in accordance with APB Opinion No. 30.
Summary operating results of the discontinued operations were as follows:
(In Thousands)
------------
Three Months Ended Nine Months Ended
------------------- -------------------
SEP 29, OCT 1, SEP 29, OCT 1,
1996 1995 1996 1995
-------- -------- -------- --------
Sales .................... $ 38,236 $ 82,968 $ 99,315 $606,259
Costs and expenses ....... 36,026 79,416 93,419 589,830
-------- -------- -------- --------
Income from discontinued
operations before
income taxes ........... 2,210 3,552 5,896 16,429
Provision for income taxes 774 1,243 2,064 5,750
-------- -------- -------- --------
Income from discontinued
operations, net of
income taxes ........... $ 1,436 $ 2,309 $ 3,832 $ 10,679
======== ======== ======== ========
Sales and income from discontinued operations decreased in 1996, reflecting the
expiration of the Rocky Flats and Nevada Test Site contracts in 1995.
Net assets (liabilities) of discontinued operations consisted of the following:
(In Thousands)
------------------
SEP 29, DEC 31,
1996 1995
------- -------
Accounts receivable,
primarily unbilled $ 2,494 $ 7,575
Operating current
liabilities ...... (7,880) (11,439)
Other .............. -- 118
------- -------
$(5,386) $(3,746)
======== =======
(4) Accounts Receivable
- ------------------------
Accounts receivable as of September 29, 1996 and December 31, 1995 included
unbilled receivables of $46 million and $44 million, respectively, which were
due primarily from U.S. Government agencies. Accounts receivable were net of
reserves for doubtful accounts of $4.8 million and $4.4 million as of September
29, 1996 and December 31, 1995, respectively.
(5) Inventories
- ----------------
Inventories consisted of the following:
(In Thousands)
------------
SEP 29, DEC 31,
1996 1995
-------- --------
Finished goods $ 30,174 $ 28,540
Work in process 30,753 28,613
Raw materials . 62,286 57,046
-------- --------
$123,213 $114,199
======== ========
6
<PAGE>
EG&G, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)
---------
(6) Property, Plant and Equipment, at Cost
- ------------------------------------------
Property, plant and equipment consisted of the following:
(In Thousands)
------------
SEP 29, DEC 31,
1996 1995
-------- --------
Land ............................... $ 11,746 $ 12,003
Buildings and leasehold improvements 116,285 108,254
Machinery and equipment ............ 338,152 297,309
-------- --------
$466,183 $417,566
======== ========
(7) Investments
- ----------------
Investments consisted of the following:
(In Thousands)
--------------
SEP 29, DEC 31,
1996 1995
-------- --------
Marketable investments .... $ 8,809 $ 9,547
Other investments ......... 955 1,396
Joint venture investments . 3,623 7,349
-------- --------
13,387 18,292
Less investments classified
as other current assets . (675) (2,220)
-------- --------
$ 12,712 $ 16,072
======== ========
At September 29, 1996, marketable investments, all classified as available for
sale, had an aggregate market value of $8.8 million and gross unrealized holding
gains of $0.7 million. Gross unrealized holding gains, net of deferred taxes, of
$0.4 million were reported as a separate component of stockholders' equity at
September 29, 1996. $0.2 million of marketable investments and $0.5 million of
other investments were classified as other current assets at September 29, 1996.
(8) Intangible Assets
- ----------------------
The decrease in intangible assets resulted primarily from current year
amortization and the effect of translating goodwill denominated in non-U.S.
currencies at current exchange rates.
(9) Accrued Expenses
- ---------------------
Accrued expenses consisted of the following:
(In Thousands)
------------
SEP 29, DEC 31,
1996 1995
-------- --------
Payroll and incentives ............... $ 24,228 $ 28,660
Employee benefits .................... 47,260 40,178
Federal, non-U.S. & state income taxes 32,423 33,153
Other ................................ 63,447 66,680
-------- --------
$167,358 $168,671
======== ========
7
<PAGE>
Item 2. Management's Discussion and Analysis of Results
-----------------------------------------------
of Operations and Financial Condition
-------------------------------------
EG&G, INC. AND SUBSIDIARIES
Results of Operations
---------------------
The following industry segment information is presented as an aid to a better
understanding of the Company's operating results:
<TABLE>
<CAPTION>
(In Thousands)
------------
Three Months Ended Nine Months Ended
-------------------------------- ------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SEP 29, OCT 1, Increase SEP 29, OCT 1, Increase
1996 1995 (Decrease) 1996 1995 (Decrease)
-------- -------- -------- ---------- ---------- --------
Instruments
Sales ............ $ 78,543 $ 70,088 $ 8,455 $ 230,900 $ 211,263 $ 19,637
Operating Income . 9,095 5,000 4,095 25,360 11,095 14,265
Mechanical Components
Sales ............ $ 67,122 $ 61,585 $ 5,537 $ 204,903 $ 184,892 $ 20,011
Operating Income . 7,940 5,961 1,979 23,297 19,098 4,199
Optoelectronics
Sales ............ $ 69,663 $ 68,345 $ 1,318 $ 203,747 $ 193,722 $ 10,025
Operating Income . 4,924 5,850 (926) 9,903 14,484 (4,581)
Technical Services
Sales ............ $139,419 $161,584 $(22,165) $ 417,895 $ 452,206 $(34,311)
Operating Income . 6,584 9,037 (2,453) 24,147 31,573 (7,426)
General Corporate
Expenses ......... $ (5,342) $ (6,762) $ 1,420 $ (18,167) $ (21,056) $ 2,889
Continuing Operations
Sales ............ $354,747 $361,602 $ (6,855) $1,057,445 $1,042,083 $ 15,362
Operating Income . 23,201 19,086 4,115 64,540 55,194 9,346
</TABLE>
The discussion that follows is a summary analysis of the major changes in
operating results by industry segment that occurred for the three and nine
months ended September 29, 1996 compared to the three and nine months ended
October 1, 1995.
Overview
- --------
Sales from continuing operations decreased 2% for the third quarter of 1996
compared to 1995; the three products segments' sales were up 8%, and Technical
Services' sales were down 14%. Sales for the first nine months of 1996 increased
1% over 1995; the three products segments' sales were up 8%, and Technical
Services' sales were down 8%. Operating income from continuing operations
increased 22% for the third quarter of 1996 compared to 1995, and 17% for the
first nine months of 1996 compared to the same period last year. The
improvements reflected the impact of higher sales in the Instruments and
Mechanical Components segments and lower costs resulting from the Company's
restructuring plan. Partially offsetting these increases in operating income
8
<PAGE>
EG&G, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued)
were decreases in Optoelectronics, caused by continuing significant operational
problems resulting in a loss in the micromachined sensors business, and
decreases in Technical Services, caused by lower automotive operations sales.
Cost savings under the restructuring plan totaled $7 million for the quarter and
$19 million for the first nine months of 1996. This represents a $2.8 million
increase for the quarter and an $8.8 million increase for the nine months over
the savings achieved for the comparable periods in 1995.
Instruments
- -----------
Third Quarter
- --------------
The $8.5 million sales increase resulted mainly from strong demand for
explosives detection systems from airports and government agencies and for
diagnostic products. These increases were partially offset by lower sales due to
the effect of changes in foreign exchange rates. The $4.1 million increase in
operating income resulted primarily from improved margins on higher sales and
lower costs from the restructuring plan.
Nine Months
- -----------
The $19.6 million sales increase resulted mainly from higher demand for
explosives detection systems and diagnostic products. These increases were
partially offset by a $4.4 million decrease due to the divestiture of two
product lines in 1995 and lower sales due to the effect of changes in foreign
exchange rates. Operating income increased $14.3 million primarily from improved
margins on higher sales, as well as lower costs resulting from the restructuring
plan, income from the expiration of a grant liability in the second quarter of
1996 and the favorable impact on export shipment margins caused by the weakening
of the Finnish markka.
Mechanical Components
- ---------------------
Third Quarter
- -------------
The continued recovery of the aerospace market and higher demand for
electromechanical products resulted in a $5.5 million sales increase. The $2
million increase in operating income resulted mainly from the margin on higher
sales.
Nine Months
- -----------
Higher demand for aerospace, electromechanical and industrial process sealing
products resulted in a $20 million sales increase. The $4.2 million increase in
operating income resulted from the margin on higher sales and lower costs from
the restructuring plan, partially offset by projected excess contract costs
incurred mainly in the second quarter of 1996.
9
<PAGE>
EG&G, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued)
Optoelectronics
- ---------------
Third Quarter
- -------------
Sales increased 2% compared to 1995. Operating income decreased $0.9 million
primarily due to continuing significant operational problems resulting in a loss
in the micromachined sensor business and, to a lesser extent, lower sales in the
power supplies business. Corrective actions are being taken, and management
expects the micromachined sensor business to return to profitability in 1997.
Partially offsetting these decreases were the margin on sales increases
experienced by some operations and lower costs from the restructuring plan.
Nine Months
- -----------
Sales increased $10 million due to higher demand for micromachined sensors for
the medical market, accelerometers for the automotive market and detectors, and
sales of new imaging products. These increases were partially offset by
decreases caused by lower power supplies sales and the divestiture of a product
line in 1995. Operating income decreased $4.6 million as a result of the
operational problems, inventory reserve provisions and fixed asset adjustments
in the micromachined sensor business and, to a lesser extent, lower sales and
projected excess contract costs in the power supplies business. Partially
offsetting these decreases were the margin on higher sales of detectors and
imaging products and lower costs resulting from the restructuring plan.
Technical Services
- ------------------
Third Quarter
- -------------
The $22.2 million sales reduction was mainly the result of a communication
systems development contract billing in 1995; the follow-on order is expected to
be shipped in 1997. Also contributing to the reduction was a decrease in
automotive operations, primarily due to continuing lower demand for stationary
testing services caused by customers' budget constraints and mature testing
specifications, and completion of a lubricant testing contract at the end of the
first quarter of 1996. Automotive operations income was down due to lower sales
and was the primary contributor to the $2.5 million decrease in the segment. The
environmental technology initiative continued to incur losses and is not
performing to management's expectations.
Nine Months
- -----------
The $34.3 million sales decrease was mainly the result of the 1995 systems
development billing, lower automotive operations sales and the completion of a
contract in 1995. The $7.4 million operating income reduction was the result of
the sales reductions, primarily in automotive operations, partially offset by an
estimated provision for a legal judgment recorded in 1995.
10
<PAGE>
EG&G, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued)
General Corporate Expenses
- --------------------------
The decreases for the quarter and nine months were due primarily to lower costs
as a result of the restructuring plan.
Other
- -----
The net increases in other expense, $3.5 million for the third quarter and $6.1
million for nine months, were due to higher interest expense reflecting the
issuance of $115 million of ten-year notes in October 1995. Lower gains on the
disposition of operating assets also contributed to the third-quarter increase.
The effective tax rate of 32.2% for the first nine months of 1996 was lower than
the 36.9% rate in 1995 primarily due to lower anticipated repatriation costs and
changes in the geographical distribution of income. The effective tax rate for
the third quarter of 1996 was 32.2%, approximately the same as 1995. The 1995
third-quarter rate reflected a reduction in the annual rate from the rate used
for the first six months of 1995.
Discontinued Operations
- -----------------------
Decreased income from discontinued operations, net of income taxes, for the
quarter and nine months, reflected the expiration of the Rocky Flats and Nevada
Test Site contracts in 1995. The Mound contract, the Company's remaining
management and operations contract with the DOE, has been extended to March 31,
1997 under existing terms and conditions and could be extended for up to an
additional six months. Sales and income from the Mound contract are dependent
upon the work scope and fee pools that are negotiated annually.
Financial Condition
-------------------
The Company's cash and cash equivalents decreased $8 million in the first nine
months of 1996 while short-term debt increased $21.9 million, mainly due to the
higher level of capital expenditures.
Net cash provided by continuing operations was $45.9 million in 1996 compared to
$94.5 million in 1995. The change in net cash resulted primarily from increases
in accounts receivable and inventories in 1996 compared to decreases in 1995.
The accounts receivable increase was mainly caused by higher sales in the
products segments and timing of payments under government contracts. Inventory
levels were increased primarily for anticipated sales. Although further progress
was not achieved in the first nine months of 1996, the Company's program to
reduce receivables and inventories remains a management priority.
11
<PAGE>
EG&G, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued)
Discontinued operations generated cash of $5.5 million in the first nine months
of 1996 compared to $25.7 million in 1995, reflecting the expiration of the
Rocky Flats and Nevada Test Site contracts during 1995.
Capital expenditures were $62.8 million in the first nine months of 1996, an
increase of $20.5 million over the same period in 1995. In 1996, capital
expenditures are expected to exceed the 1995 level by approximately 50%. These
increases support new product development initiatives primarily in the
Optoelectronics segment.
During the first six months of 1996, the Company purchased 531,000 shares of its
common stock through periodic purchases on the open market at a cost of $12
million. There were no purchases during the third quarter, and the Company
resumed making purchases during the fourth quarter. As of September 29, 1996,
the Company had authorization to purchase 5.1 million additional shares. The
pace of future purchases will depend on operational cash flows and cash
utilization alternatives.
In March 1996, the Company renegotiated its credit facilities with the signing
of two revolving credit agreements totaling $200 million. These agreements
consist of a $100 million, 364-day facility and a $100 million, five-year
facility, which expires in March 2001. These agreements serve primarily as
backup facilities for the Company's commercial paper borrowing program.
12
<PAGE>
Exhibits
--------
EG&G, INC. AND SUBSIDIARIES
Exhibit 27 - Financial data schedule
13
<PAGE>
PART II. OTHER INFORMATION
EG&G, INC. AND SUBSIDIARIES
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
(a) Exhibits incorporated by reference from Part I herein
Exhibit 27 - Financial data schedule (submitted in electronic format only)
(b) Reports on Form 8-K
There were no reports on Form 8-K filed for the three months ended
September 29, 1996.
14
<PAGE>
EG&G, INC. AND SUBSIDIARIES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
EG&G, Inc.
By /s/ John F. Alexander, II
-------------------------
Senior Vice President and
Chief Financial Officer
(Principal Financial Officer)
Date November 8, 1996
----------------
15
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000031791
<NAME> EG&G, Inc.
<MULTIPLIER> 1000
<CURRENCY> US$
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-29-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-29-1996
<EXCHANGE-RATE> 1
<CASH> 68,252
<SECURITIES> 0
<RECEIVABLES> 218,447
<ALLOWANCES> 4,800
<INVENTORY> 123,213
<CURRENT-ASSETS> 476,737
<PP&E> 466,183
<DEPRECIATION> 284,473
<TOTAL-ASSETS> 837,049
<CURRENT-LIABILITIES> 273,366
<BONDS> 114,935
0
0
<COMMON> 60,102
<OTHER-SE> 317,686
<TOTAL-LIABILITY-AND-EQUITY> 837,049
<SALES> 1,057,445
<TOTAL-REVENUES> 1,057,445
<CGS> 406,108
<TOTAL-COSTS> 779,306
<OTHER-EXPENSES> 213,599
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 9,751
<INCOME-PRETAX> 59,331
<INCOME-TAX> 19,105
<INCOME-CONTINUING> 40,226
<DISCONTINUED> 3,832
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 44,058
<EPS-PRIMARY> .93
<EPS-DILUTED> .93
</TABLE>
