SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended March 31, 1999
OR
[] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to .
Commission File No. 1-7117
GENERAL HOUSEWARES CORP.
(Exact name of Registrant as specified in its Charter)
Delaware 41-0919772
(State or other jurisdiction of (IRS Employer
incorporation or organization Identification No.)
1536 Beech Street 47804
Terre Haute, Indiana (Zip Code)
(Address of principal executive offices)
Registrant's telephone number, including area code (812) 232-1000
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 90 days.
Yes X No
Indicate the number of shares outstanding of each of the Registrant's classes
of Common Stock as of the latest practicable date.
Class of Common Stock Outstanding at May 14, 1999
$.33-1/3 Par Value 4,027,912
GENERAL HOUSEWARES CORP.
INDEX
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
Consolidated Condensed Statements of Operations
and Retained Earnings
Three months ended March 31, 1999 and 1998
Consolidated Statements of Comprehensive Income (Loss)
Three months ended March 31, 1999 and 1998
Consolidated Condensed Balance Sheets
March 31, 1999 and December 31, 1998
Consolidated Condensed Statements of Cash Flows
Three months ended March 31, 1999 and 1998
Notes to Consolidated Condensed Financial Statements
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
PART II OTHER INFORMATION
ITEM 6. EXHIBITS
SIGNATURES
COMPUTATION OF EARNINGS PER SHARE (basic & diluted)
FINANCIAL DATA SCHEDULE
PART I FINANCIAL INFORMATION
GENERAL HOUSEWARES CORP. & SUBSIDIARIES
(Dollars in thousands except per share amounts)
Consolidated Condensed Statements of Operations
and Retained Earnings
For the three months
ended March 31,
(Unaudited)
1999 1998
Net sales $24,874 $21,044
Cost of goods sold 14,538 12,974
------- -------
Gross profit 10,336 8,070
Non-recurring charges 1,980 1,500
Selling, general and
administrative expenses 9,141 9,970
------- -------
Operating loss (785) (3,400)
Interest expense, net 341 626
------- -------
Loss from operations before
income tax benefit (1,126) (4,026)
Income tax benefit (473) (1,325)
------- -------
Net loss for the period (653) (2,701)
Retained earnings, beginning of period 25,538 26,722
Less: Dividends ($.08 per common share
in 1998) - 305
------- --------
Retained earnings, end of period $24,885 $23,716
Basic loss per common share $ (0.17) $(0.71)
Diluted loss per common share $ (0.17) $(0.71)
Weighted average shares outstanding 3,858 3,812
(basic and diluted)
See notes to consolidated condensed financial statements.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
For the three months
ended March 31,
1999 1998
(Unaudited)
Net loss $(653) $(2,701)
Other comprehensive income,
net of tax:
Foreign currency translation adjustments 171 6
---- -------
Comprehensive loss $(482) $(2,695)
See notes to consolidated condensed financial statements.
CONSOLIDATED CONDENSED BALANCE SHEETS
As of
March 31, December 31,
1999 1998
(Unaudited)
ASSETS
Current Assets:
Cash $ 861 $ 1,598
Accounts receivable, less allowance of
$2,500 ($3,240 in 1998) 17,016 16,158
Inventories 20,064 19,122
Deferred tax asset 3,016 3,016
Other current assets 1,116 1,453
Income taxes refundable 445 -
------- --------
Total current assets 42,518 41,347
Notes receivable 1,013 2,578
Property, plant and equipment, net 9,326 9,492
Other assets 1,072 1,744
Patents and other intangible assets 2,514 2,307
Cost in excess of net assets acquired 22,589 22,766
------- --------
Total Assets $79,032 $80,234
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current maturities of long-term debt $ 1,616 $ 1,616
Notes payable - 600
Accounts payable 1,915 2,116
Salaries, wages and related benefits 1,731 1,696
Accrued liabilities 2,368 3,386
Income taxes payable - 1,122
------- --------
Total current liabilities 7,630 10,536
Long-term debt 23,143 21,143
Deferred liabilities 1,312 1,266
Stockholders' Equity:
Preferred stock - $1.00 par value:
Authorized - 1,000,000 shares
Common stock - $.33-1/3 par value:
Authorized - 10,000,000 shares
Outstanding (including
treasury stock) - 1999 - 4,311,611
and 1998 - 4,310,967 shares 1,436 1,434
Capital in excess of par value 24,899 24,761
Treasury stock at cost - 1999 and
1998 - 277,760 shares (3,649) (3,649)
Retained earnings 24,885 25,538
Accumulated other comprehensive loss (624) (795)
------- -------
Total stockholders' equity 46,947 47,289
------ ------
Total Liabilities and Stockholders' Equity $79,032 $80,234
See notes to consolidated condensed financial statements.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
For the three months
ended March 31,
(Unaudited)
1999 1998
OPERATING ACTIVITIES:
Net loss $ (653) $(2,701)
Adjustments to reconcile net loss to net
cash (used for) provided by
operating activities:
Depreciation and amortization 1,223 1,806
Loss on sale of assets - 1,500
Compensation related to stock awards 133 -
Write-down of note receivable 1,500 -
(Increase) decrease in operating assets:
Accounts receivable (858) 1,584
Inventory (942) 245
Other assets 673 780
(Decrease) increase in operating liabilities:
Accounts payable (201) 670
Salaries, wages and related benefits,
accrued and deferred liabilities (937) 178
Income taxes payable (refundable) (1,567) (2,213)
------- -------
Net cash (used for) provided by
operating activities: (1,629) 1,849
INVESTING ACTIVITIES:
Additions to property, plant
and equipment, net (723) (1,481)
Proceeds from sale of assets 158 4,900
Note receivable activity 103 -
------- --------
Net cash (used for) provided by
investing activities (462) 3,419
FINANCING ACTIVITIES:
Debt borrowing (repayment) 1,400 (7,222)
Proceeds from stock options and
employee stock purchases 7 20
Dividends paid - (305)
------- --------
Net cash provided by (used for)
financing activities 1,407 (7,507)
------- --------
Net decrease in cash and
cash equivalents (684) (2,239)
Cash and cash equivalents at beginning
of period 1,598 2,363
------- --------
Effect of exchange rate on cash (53) (10)
------- --------
Cash and cash equivalents at
end of period $861 $114
See notes to consolidated condensed financial statements.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Dollars in thousands)
NOTE 1 - GENERAL
The accompanying interim Consolidated Condensed Financial Statements have been
prepared by the Company, 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. However, in the opinion of
management, the financial statements included herein reflect all adjustments
necessary to present fairly the financial information for the periods
presented. The Consolidated Condensed Financial Statements should be read in
conjunction with the Consolidated Financial Statements and notes thereto
included in the Company's 1998 Annual Report on Form 10-K.
NOTE 2 - INVENTORIES
March 31, December 31,
1999 1998
Raw materials $ 1,869 $ 2,277
Work in process 987 842
Finished goods 16,020 15,027
------- -------
18,876 18,146
LIFO Reserve 1,188 976
------- -------
Total, net $20,064 $19,122
NOTE 3 - PROPERTIES
March 31, December 31,
1999 1998
Land $ 387 $ 387
Buildings 3,441 3,545
Equipment 18,602 17,940
------- -------
Total 22,430 21,872
Accumulated depreciation (13,104) (12,380)
------- -------
Total, net $ 9,326 $ 9,492
NOTE 4 NON-RECURRING CHARGES
Effective March 31, 1998, the Company sold its enamelware cookware business.
While the Company received consideration in excess of the book value of
tangible assets sold, non-cash charges related to the sale included a write-off
of goodwill and a defined benefit pension plan curtailment. As a result of the
sale, the Company recorded a non-recurring charge of $1,500 in the first
quarter of 1998. In the first quarter of 1999, the Company recorded a $1,500
charge against earnings for the write-off of the entire remaining balance of a
note receivable related to the 1996 sale of its aluminum and cast iron cookware
division. The Company also recorded $480 of severance in the first quarter of
1999 related to two officer positions that will be eliminated June 30, 1999.
Cash outlays related to the severance payments will be made from July 1, 1999
to June 30, 2000.
NOTE 5 SEGMENT INFORMATION
The Company is organized based on product lines which have distinct brand names
and are managed as autonomous marketing units. The Company evaluates
performance and allocates resources to segments based on divisional operating
income. Divisional operating income is calculated by deducting direct
operating expenses from gross profit. Direct operating expenses include
certain marketing, warehousing, cooperative advertising and administrative
charges (intangible amortization and royalty charges) that are structured for
divisional tracking or are consistently allocated to the divisional level.
General marketing overhead expenses, selling costs and general corporate
overhead expenses are allocated to the divisional level from time to time, but,
in general, are not used to make operating decisions and assess performance.
These costs are excluded from divisional operating income. Assets that are
identifiable for segment reporting purposes include inventories, property,
plant and equipment, patents and other intangible assets and cost in excess of
net assets acquired.
The Company has identified the following segments as reportable segments for
purposes of segment reporting: Kitchen and Household Tools (K&HT), Precision
Cutting Tools (PCT), Kitchen Cutlery (CUT), Cookware (COOK), Retail Outlet
Stores (RET) and Other Housewares-Related Products (Other). The table below
presents information about reported segments for the quarters ended March 31,
1999 K&HT PCT CUT
Net sales $ 11,921 $ 5,193 $ 4,821
Divisional operating income $ 4,437 $ 1,885 $ 684
Depreciation and
amortization expense $ 349 $ 118 $ 432
Total identifiable assets $ 13,082 $ 10,748 $ 26,085
Identifiable capital
expenditures $ 408 $ 37 $ 168
1999 RET OTHER TOTAL
Net sales $ 1,278 $ 1,661 $ 24,874
Divisional operating income $ 184 $ 192 $ 7,382
Depreciation and
amortization expense $ 60 $ 15 $ 974
Total identifiable assets $ 2,002 $ 1,332 $ 53,249
Identifiable capital
expenditures $ - $ 23 $ 636
1998 K&HT PCT CUT COOK
Net sales $ 7,366 $ 4,554 $ 4,861 $ 2,362
Divisional operating income $ 1,725 $ 1,699 $ 609 $ 191
Depreciation and
amortization expense $ 509 $ 109 $ 595 $ 193
Total identifiable assets $ 11,892 $ 9,914 $ 28,485 $ -
Identifiable capital
expenditures $ 897 $ 81 $ 418 $ 10
1998 RET OTHER TOTAL
Net sales $ 1,443 $ 458 $ 21,044
Divisional operating income $ 81 $ (106) 4,199
Depreciation and
amortization expense $ 91 $ 23 $ 1,520
Total identifiable assets $ 1,788 $ 1,512 $ 53,591
Identifiable capital
expenditures $ - $ 49 $ 1,455
A reconciliation of total segment information to total consolidated financial
information for the three months ended March 31, 1999 and 1998 is as follows:
1999 1998
Divisional operating income $ 7,382 $ 4,199
Unallocated corporate S, G & A 4,617 6,099
Non-recurring charges 1,980 1,500
Loss before interest and taxes (785) (3,400)
Unallocated interest expense 341 626
Loss before income taxes $(1,126) ($4,026)
1999 1998
Identified depreciation and amortization $ 974 $ 1,520
Unallocated information systems and corporate
facility depreciation 249 286
Total consolidated depreciation and
amortization $ 1,223 $ 1,806
1999 1998
Identifiable assets $53,249 $53,591
Accounts receivable 17,016 16,158
Other unallocated assets 8,767 10,485
Total consolidated assets $79,032 $80,234
1999 1998
Identifiable capital expenditures $ 636 $ 1,455
Unallocated corporate capital expenditures 87 26
Total consolidated capital expenditures $ 723 $ 1,481
The Company allocates distribution center expense, including related
depreciation expense, to segments based on shipping and storage volumes.
Related capital expenditures are allocated to identified segments in the same
manner.
Of the total revenues derived by the Precision Cutting Tools Segment, first
quarter 1999 and 1998 revenues of $1,807 and $1,825, respectively, were
generated by a division operating in Canada. Divisional operating income for
that same division was $659 and $815 for the quarters ended March 31, 1999 and
1998, respectively.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
(In thousands)
The following table sets forth the operating data of the Company as a
percentage of net sales for the quarterly periods ended March 31,
1999 1998
Net sales 100.0% 100.0%
Cost of sales 58.4% 61.7%
------ ------
Gross profit 41.6% 38.3%
Selling, general and
administrative expenses 44.7% 54.5%
------ ------
Operating loss (3.1%) (16.2%)
Interest expense 1.4% 3.0%
------ ------
Loss before taxes (4.5%) (19.2%)
Income taxes (1.9%) (6.3%)
------ ------
Net loss (2.6%) (12.9%)
Sale of Assets
On March 31, 1998, the Company completed the sale of certain assets related to
its enamelware cookware business (Enamelware Division). The transaction had a
material impact on both the financial position of the Company as of March 31,
1998, and results of operations for the three months then ended. The
following discussion considers those impacts.
Financial Position
Referring to the Company's financial position as of March 31, 1999, as
contrasted with December 31, 1998, current assets increased by $1,171 while
current liabilities decreased by $2,906. Offsetting a $737 drop in cash,
which resulted from the timing of payments and cash receipts, was an increase
in inventories ($942) and accounts receivable ($858). The increase in
inventories is reflective of continued sales growth in the Company's import
businesses. Higher levels of inventory are needed to support the sales growth
and are magnified by relatively longer lead times of the import
supply chain. The increase in accounts receivable is due primarily to an
increase in net sales in the last two months of the first quarter of 1999 as
compared to the last two months of the fourth quarter of 1998. Other current
assets dropped $337 from December 31, 1998 due the timing of cash receipts and
cash payments. The decrease in current liabilities also relates to the timing
of cash receipts and payments. Notes receivable dropped $1,565 from December
31, 1998 due primarily to the write-off of a note receivable related to the
1996 sale of the Company's aluminum and cast iron cookware division.
Results of Operations
Net sales for the three-month period ended March 31, 1999 were $24,874, an
increase of 18% as compared to net sales of $21,044 for the first three months
of 1998. On a comparative basis, excluding first quarter 1998 sales of the
divested Enamelware Division, net sales increased $6,192 or 33%. Gross profit
dollars for the quarter ended March 31, 1999 were $10,336, an increase of
$2,266 when compared to gross profit dollars of $8,070 for the same period in
1998. On a comparative basis, excluding first quarter 1998 gross profit
dollars of the divested Enamelware Division, first quarter 1999 gross profit
dollars improved $2,687. As a percentage of net sales, gross profit improved
from 38.3% for the first three months of 1998 to 41.6% in the first quarter of
1999. The following details sales, gross profit and divisional operating
income by reporting segment. Divisional operating income is calculated by
deducting direct operating expenses from gross profit. Direct operating
expenses include certain marketing, warehousing, cooperative advertising and
administrative charges (intangible amortization and royalty charges) that are
structured for divisional tracking or are consistently allocated to the
divisional level.
Kitchen and Household Tools - Net sales of the kitchen and household tools
segment for the first three months of 1999 were $11,921, an increase of $4,555
or 62% as compared to net sales of $7,366 for the first three months of 1998.
Incremental sales were related primarily to new products introduced
subsequent to March 31, 1998. Gross profit as a percentage of net sales
remained consistent quarter-over-quarter. The increased sales volume in the
first three months of 1999 added $2,251 of gross profit dollars. Divisional
operating income increased to $4,437 from $1,725 for the respective three-month
period. The increase is reflective of the increased sales volume as well as a
drop in warehouse expense.
Precision Cutting Tools - Net sales of the precision cutting tools segment for
the first three months of 1999 were $5,193, an increase of $639 or 14% as
compared to net sales of $4,554 for the first three months of 1998. The
increase was primarily the result of additional product placement with an
existing customer in the U.S. sewing and craft market. Gross profit as a
percentage of net sales remained consistent quarter-over-quarter. The
increased sales volume added $301 of gross profit dollars. Divisional
operating income increased to $1,885 from $1,699 for the respective three-month
period. The increase is reflective of the increased sales volume as well as a
drop in warehouse expense.
Cutlery - Net sales of the cutlery segment for the first three months of 1999
of $4,821 were relatively unchanged when compared to net sales of $4,861 in
the first three months of 1998. Gross profit dollars dropped from $1,688 to
$1,359 in the quarter-over-quarter comparison due primarily to a
special cutlery block set promotion and lower production volume
resulting in reduced fixed factory overhead absorption. Divisional operating
income increased to $684 from $609 for the respective three-month period. The
increase is reflective of a drop in warehouse expense partially offset by the
drop in gross profit dollars.
Cookware - Cookware segment net sales for the three-month period ended March
31, 1998 were $2,362. There were no cookware segment sales in the first
quarter of 1999 due to the sale of the Enamelware Division. The cookware
segment provided gross profit dollars of $421 and divisional operating income
of $191 in the first quarter of 1998.
Retail Outlet Stores - Net sales for the first three months of 1999 at the
Company's chain of outlet stores were $1,278, a decline of $165 when compared
to net sales for the three months ended March 31, 1998. While same-store sales
increased quarter-over-quarter, store closings subsequent to March 31, 1998
unfavorably impacted sales. Gross profit percentages and dollars for the
outlet store segment increased in the first three months of 1999 over the first
quarter of 1998. Divisional operating income increased to $184 from $81 for
the respective three-month period. The increase was driven by improved gross
profit percentage.
Other - Net sales of the "Other" segment (which consists primarily of the
Company's barbecue tool and outdoor accessories line) for the first three
months of 1999 were $1,661, an increase of $1,203 or 262% as compared to net
sales of $458 for the first three months of 1998. The increased sales volume,
which was primarily the result of distribution gains as the barbecue and
outdoor accessories line is relatively new, in the first three months of 1999
added $402 of gross profit dollars. Divisional operating income increased to
$192 from a loss of $106 for the respective three-month period. The increase
is reflective of the sales growth as well as a drop in warehouse expense.
Selling, general and administrative (S,G&A) expenses for the three-month
period ended March 31, 1999 were $9,141 as compared to $9,970 for the same
period in 1998. The decrease from the first three months of 1998 relates
primarily to the first quarter 1998 relocation of the majority of the Company's
distribution activities. After excluding these distribution-related
expenses incurred in 1998, S,G&A expense for the first three months of
1999 was relatively flat with the prior year.
First quarter 1998, non-recurring charges include the loss on sale of the
Company's Enamelware Division. Non-recurring charges in the first quarter of
1999 include the write-down of the entire remaining balance of a note
receivable resulting from the sale of the Company's aluminum and cast iron
Cookware Division in 1996 ($1.5 million) as well as restructuring-related
severance charges ($480).
The operating loss for the first quarter of 1999 was $785 as compared to an
operating loss of $3,400 for the first three months of 1998. The net loss for
the quarter ended March 31, 1999 was $653 or $0.17 per diluted share. This
compares to a net loss of $2,701 or $0.71 per diluted share for the three
months ended March 31, 1998.
Year 2000
The Year 2000 ("Y2K") computer software compliance issues affect the Company
and most companies throughout the world. Historically, many computer
programs were developed using just the last two digits (rather than all
four) to define the applicable year. Accordingly, these programs, unless
modified to perform otherwise, may recognize a date using the two digits
"00" as the year 1900 rather than the year 2000. Computer programs that do
not recognize the proper date could generate erroneous data or cause systems
to fail.
The Company has developed a program to address the Y2K issues. This program
is divided into four major sections -- Business Administration, Business
Applications, Facilities/Information Technology Infrastructure and the
Customer Fulfillment Process. The general phases of the program common to
all sections are (1) inventorying Y2K items; (2) assigning priorities to
identified items; (3) assessing the Y2K status of items that, if failed,
would have a material impact on the Company; (4) remediating critical items
that are not Y2K compliant; (5) testing critical items; and (6) designing
and implementing contingency and business continuation plans.
As of March 31, 1999, the Company had inventoried, prioritized and
assessed critical Y2K items and was substantially complete with the inventory
for all other Y2K items. Remediation efforts were being performed in the
Business Applications, Facilities/Information Technology Infrastructure and
Customer Fulfillment Process sections of the Y2K program. The testing of
items and Y2K contingency planning were in process as of March 31, 1999.
The Company has completed the inventory process, the prioritization process
and the assessment process for all four sections as of March 31, 1999.
Remediation and testing are currently planned to be completed no later than
June 30, 1999, for all four sections of the Y2K program.
The Company is utilizing internal personnel, contract programmers and vendors
to identify Y2K non-compliance problems, modify code and test the
modifications. In some cases, non-compliant software and hardware may be
replaced.
The Company relies on third-party suppliers for finished goods, raw
materials, water, utilities, communications, transportation and other key
services. Interruption of vendor and supplier operations due to Y2K issues
would affect Company operations in a material way. The Company has
undertaken initiatives to evaluate the efforts of its vendors and suppliers
to mitigate Y2K risks and determine alternatives and contingency plan
requirements. While approaches to reducing risks of interruption due to
vendor and supplier failures may vary, options include identification of
alternate suppliers and accumulation of inventory where feasible or
warranted. These activities are intended to provide a means of managing
risk but cannot eliminate the potential for disruption due to third-party
failure.
The Company is also dependent upon customers for sales and cash flow. Y2K
interruptions in the operations of the Company's customers could result in
reduced sales, increased inventory or receivable levels and cash flow
reductions. While these events are possible, the Company believes that its
customer base is broad enough to minimize the consequences of a single
occurrence. The Company is, however, taking steps to monitor the status of
customers' efforts to become Y2K compliant as a means of identifying risks
and the need for contingencies.
In addition to the Y2K program activities described above, the Company is
developing contingency plans intended to mitigate the possible disruption in
business operations that may result from Y2K non-compliance problems and is
developing cost estimates for such plans. Contingency plans will primarily
address issues surrounding the Company's internal software systems and the
reliance it places on critical vendors and suppliers. Contingency plans may
include the identification of alternative software processing capabilities
and the stock-piling of raw and packaging materials, increasing finished
goods inventory levels, securing alternate sources of supply and other
appropriate measures. Once developed, contingency plans and related cost
estimates will be refined on an ongoing basis as additional information
becomes available.
External and internal costs specifically associated with modifying internal
software for Y2K compliance are expensed as incurred. The Company does not
separately track the internal costs incurred for its Y2K program. Such costs
are principally the related payroll costs for the Company's information
systems group. Total external costs related to the Company's Y2K program
incurred as of March 31, 1999, aggregated $1,175. The future incremental
external costs of completing the Company's Y2K program are presently estimated
to be approximately $700. These amounts do not include any costs associated
with the implementation of contingency plans, which are in the process of being
developed. All costs related to the Company's Y2K program are being funded
through operating cash flow.
The failure to correct a material Y2K problem could result in an interruption
in, or failure of, certain normal business activities or operations. Such
failures could materially and adversely affect the Company's results of
operations, liquidity and financial condition. Due to the general
uncertainty inherent in the Y2K problem, resulting in part from the
uncertainty of the Y2K readiness of third-party suppliers and customers,
the Company is unable to determine at this time whether the consequences of
Y2K failures will have a material impact on the Company's results of
operations, liquidity or financial condition. The Company's Y2K program
is expected to reduce significantly the Company's level of uncertainty about
the Y2K problem and, in particular, about the Y2K compliance and readiness
of its business partners. The Company believes that, with the completion of
its Y2K program as scheduled, the possibility of significant interruptions of
normal operations should be reduced.
Forward-Looking Information
Periodically, in written reports and oral statements, the Company
discusses its expectations regarding future performance. These forward-
looking statements are based on currently available competitive, financial
and economic data and management's views and assumptions regarding future
events. Such forward-looking statements are inherently uncertain, and
investors must recognize that actual results may differ materially from
those expressed or implied in the forward-looking statements. Among the
factors that could impact the Company's ability to achieve its stated goals
are the following: (i) the Company's ability to realize improvements in
productivity and efficiency from its ADVANCE(SM) (Automated Distribution
Value-Added Network CEnter) logistics program; (ii) significant competitive
activity, including promotional and price competition, and changes in
consumer demand for the Company's products; (iii) inherent risks in the
marketplace associated with new product introductions, including
uncertainties about trade and consumer acceptance and (iv) failure by the
Company or one or more of its significant vendors or customers to correct
a material Y2K problem. In addition, the Company's results may also be
affected by general factors, such as economic conditions in the markets
where the Company competes.
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
Reports on Form 8-K. There were no reports on Form 8-K filed for the three
months ended March 31, 1999.
EXHIBITS
EX-11
EX-27
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.
GENERAL HOUSEWARES CORP.
Dated: May 14, 1999
/s/ Mark S. Scales
Mark S. Scales
Vice President Chief Financial
Officer and Treasurer
/s/ Bradley A. Kelsheimer
Bradley A. Kelsheimer
Corporate Controller
EXHIBIT 11
COMPUTATION OF EARNINGS PER SHARE
(Dollars in thousands except per share amounts)
1999 1998
Basic Diluted Basic Diluted
Net loss ($653) ($653) ($2,701) ($2,701)
Shares:
Weighted average number of
shares of common stock 3,857,679 3,857,679 3,811,706 3,811,706
outstanding
Shares assumed issued (less shares
assumed purchased for treasury) on
stock option and restricted stock
agreements - - - -
Rounding 321 321 294 294
-------- -------- --------- --------
3,858,000 3,858,000 3,812,000 3,812,000
Net Loss per Common Share ($0.17) ($0.17) ($0.71) ($0.71)
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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<PERIOD-START> JAN-01-1999
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0
0
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</TABLE>
