SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q/A
Amendment No.1
AMENDED QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended December 31, 1994 Commission File No 1-4506
GARAN, INCORPORATED
(Exact name of registrant as specified in its charter)
VIRGINIA 13-5665557
(State of Incorporation) (I.R.S. Employer Identification No.)
350 Fifth Avenue, New York, NY 10118
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (212) 563-2000
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 than 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 close of the period covered by this
report.
Class Outstanding December 31, 1994
Common Stock (no par value) 5,069,892 shares
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PART I. - FINANCIAL INFORMATION
Item 1. Financial Statements
GARAN, INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(UNAUDITED)
<CAPTION>
THREE MONTHS ENDED
12/31/94 12/31/93
__________________ __________________
<S> <C> <C>
Net sales $ 38,668,000 $ 45,335,000
Cost of sales 31,264,000 33,802,000
____________ ____________
Gross margin on sales 7,404,000 11,533,000
Selling and administrative expenses 6,050,000 6,730,000
Interest on capitalized leases 39,000 41,000
Interest income (525,000) (370,000)
_____________ _____________
Earnings before provision
for income taxes 1,840,000 5,132,000
Provision for income taxes 718,000 2,001,000
____________ ____________
Net earnings $ 1,122,000 $ 3,131,000
Earnings per share data:
Earnings per share $ 0.22 $ 0.62
Average common shares outstanding 5,070,000 5,070,000
Dividends paid per share $ 0.40 $ 1.20
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GARAN, INCORPORATED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<CAPTION>
12/31/94 9/30/94
_____________ _____________
<S> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents $ 11,097,000 $ 7,664,000
U.S. Government securities - short-term 23,101,000 20,559,000
Accounts receivable, less estimated
uncollectibles of $514,000 at
12/31/94 and $507,000 at 9/30/94 20,450,000 39,707,000
Inventories 21,238,000 27,881,000
Other current assets 2,657,000 3,085,000
_____________ _____________
Total current assets 78,543,000 98,896,000
U.S. Government Securities - long-term 13,027,000 0
Property, plant and equipment, less
accumulated depreciation and amortization 15,262,000 15,544,000
Other assets 2,510,000 2,607,000
_____________ _____________
TOTAL $ 109,342,000 $ 117,047,000
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<CAPTION>
LIABILITIES AND SHAREHOLDERS' EQUITY
<S> <C> <C>
Current Liabilities:
Accounts payable $ 3,014,000 $ 6,546,000
Accrued liabilities 6,592,000 9,531,000
Federal and state income taxes payable 752,000 813,000
Current portion of capitalized leases 151,000 151,000
_____________ _____________
Total current liabilities 10,509,000 17,041,000
Capitalized lease obligations, net of
current portion 3,163,000 3,620,000
Deferred income taxes 2,680,000 2,490,000
Shareholders' Equity:
Preferred stock ($10 par value) 500,000
shares authorized; none issued
Common stock (no par value) 15,000,000
shares authorized; 5,069,892 issued at
12/31/94 and 9/30/94 2,535,000 2,535,000
Additional paid-in-capital 5,821,000 5,821,000
Retained earnings 84,634,000 85,540,000
_____________ _____________
Total shareholders' equity 92,990,000 93,896,000
_____________ _____________
TOTAL $ 109,342,000 $ 117,047,000
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GARAN, INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<CAPTION>
THREE MONTHS ENDED
12/31/94 12/31/93
_____________ _____________
<S> <C> <C>
Cash Flows From operating Activities:
Net earnings $ 1,122,000 $ 3,131,000
Non cash items included in earnings:
Depreciation and amortization 893,000 879,000
Provision for losses on accounts receivable 37,000 36,000
Deferred income taxes 190,000 0
Changes in assets and liabilities:
U.S. Government Securities - short-term (14,557,000) 0
Accounts receivable 19,220,000 13,983,000
Inventories 6,643,000 2,742,000
Other current assets 428,000 (340,000)
Accounts payable (3,532,000) (2,207,000)
Accrued liabilities (2,825,000) (3,687,000)
Income taxes payable (61,000) 760,000
Other assets 97,000 138,000
______________ ______________
Net Cash Flows From operating Activities $ 7,655,000 $ 15,435,000
Cash Flows From Investing Activities:
Sale of U.S. Gov't securities - long-term $ 0 $ 5,550,000
Purchase of U.S. Gov't sec. - long-term (1,012,000) (13,753,000)
Additions to property plant and equipment (772,000) (730,000)
Proceeds from sales of property,
plant and equipment 47,000 16,000
______________ ______________
Net Cash Flows From Investing Activities $ (1,737,000) $ (8,917,000)
Cash Flows From Financing Activities:
Payment of dividends $ (2,028,000) $ (6,084,000)
Repayment of capitalized lease obligations (457,000) (255,000)
______________ ______________
Net Cash Flows From Financing Activities $(2,485,000) $ (6,339,000)
Increase in Cash and Cash Equivalents $ 3,433,000 $ 179,000
Cash and Cash Equivalents At Beginning
of Period 7,664,000 3,802,000
______________ ______________
Cash and cash equivalents At End of Period $ 11,097,000 $ 3,981,000
Supplemental Disclosures
Cash Paid During The Period For:
Interest $ 39,000 $ 41,000
Income taxes 169,000 1,241,000
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GARAN, INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 1994
(UNAUDITED)
1. In the opinion of management, all adjustments necessary to a fair
statement of the results of operations have been reflected.
2. Earnings per share are calculated on the basis of the weighted average
number of common shares outstanding during the period.
3. Inventories consist of the following:
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<CAPTION>
12/31/94 09/30/94
____________ ____________
<S> <C> <C>
Raw Materials $ 5,019,000 $ 7,135,000
Work in process 9,495,000 10,735,000
Finished Goods 6,724,000 10,011,000
____________ ____________
$ 21,238,000 $ 27,881,000
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4. Effective December 31, 1994, the registrant adopted Statement of
Financial Standards No. 115, "Accounting for Certain Investments in Debt
and Equity Securities" (SFAS 115), which requires that investments in debt
securities and marketable securities be designated as trading, held-to-
maturity, or available-for-sale. Trading securities are reported at fair
value, with changes in fair value reported in earnings. Investment
securities include both available-for-sale and held-to-maturity securities.
Available-for-sale securities are reported at fair value with net
unrealized gains and losses (when material) included in equity. Held-to-
maturity debt securities are reported at amortized cost.
In accordance with SFAS 115, prior years' financial statements have not
been restated to reflect the change in accounting method. There was no
cumulative effect as a result of adopting SFAS 115.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on it's behalf by the
undersigned thereunto duly authorized.
GARAN, INCORPORATED
BY:Seymour Lichtenstein
Seymour Lichtenstein
Principal Executive Officer
BY:William J. Wilson
William J. Wilson
Principal Financial Officer
DATE: March 1, 1995
