UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
(X) QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended June 30, 1994 Commission file number 1-996
OR
( ) TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
GENERAL SIGNAL CORPORATION
(Exact name of registrant as specified in its charter)
New York 16-0445660
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
High Ridge Park,
Box 10010, Stamford, Connecticut 06904
(Address of principal executive offices) (Zip Code)
Registrant's telephone number,
including area code (203) 329-4100
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Sections 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.
X
(Yes) (No)
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Common Stock, par value $1.00 47,283,366 shares
(Class) (Outstanding at July 29, 1994)<PAGE>
PART I: FINANCIAL INFORMATION
ITEM I: FINANCIAL STATEMENTS
GENERAL SIGNAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
Condensed Statement of Earnings
(In thousands, except per share data)
(Unaudited)
Three Months Ended June 30,
1994 1993
Net sales $ 426,730 $ 386,473
Cost of sales 304,431 288,384
Selling, general and administrative expenses 82,307 76,696
Dispositions of businesses and restructuring - - (12,100)
386,738 352,980
Operating earnings 39,992 33,493
Interest expense, net (2,822) (4,663)
Earnings before income taxes 37,170 28,830
Income taxes 12,183 9,379
Earnings before extraordinary charge 24,987 19,451
Extraordinary charge -- (6,576)
Net earnings $ 24,987 $ 12,875
Earnings per share of common stock:
Earnings before extraordinary charge $ 0.53 $ 0.44
Extraordinary charge -- (0.15)
Net earnings $ 0.53 $ 0.29
Dividends declared per common share $ 0.225 $ 0.225
Average common shares outstanding 47,308 44,012
See accompanying notes to financial statements.<PAGE>
GENERAL SIGNAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
Condensed Statement of Earnings
(In thousands, except per share data)
(Unaudited)
Six Months Ended June 30,
1994 1993
Net sales $ 815,270 $ 763,689
Cost of sales 577,403 555,556
Selling, general and administrative expenses 157,198 154,089
Dispositions of businesses and restructuring - - (12,100)
734,601 697,545
Operating earnings 80,669 66,144
Interest expense, net (5,551) (10,549)
Earnings before income taxes 75,118 55,595
Income taxes 25,540 18,183
Earnings before extraordinary charge and
cumulative effect of accounting change 49,578 37,412
Extraordinary charge - - (6,576)
Cumulative effect of accounting change - - (25,300)
Net earnings $ 49,578 $ 5,536
Earnings per share of common stock:
Earnings before extraordinary charge
and cumulative effect of accounting
change $ 1.05 $ 0.87
Extraordinary charge - - (0.15)
Cumulative effect of accounting change - - (0.59)
Net earnings $ 1.05 $ 0.13
Dividends declared per common share $ 0.45 $ 0.45
Average common shares outstanding 47,359 43,215
See accompanying notes to financial statements.
<PAGE>
GENERAL SIGNAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
Condensed Balance Sheet
(In thousands)
(Unaudited)
June 30, December 31,
Assets 1994 1993
Current assets:
Cash and cash equivalents $ 8,389 $ 1,253
Accounts receivable 280,023 255,534
Inventories 229,516 196,286
Prepaid expenses and other
current assets 51,780 55,482
Deferred income taxes 59,263 60,315
Assets held for sale at estimated
realizable value - - 25,675
628,971 594,545
Property, plant, and equipment 293,185 263,353
Intangibles 188,756 184,240
Other assets 148,147 134,314
Deferred income taxes 47,755 48,389
$1,306,814 $1,224,841
See accompanying notes to financial statements.
<PAGE>
GENERAL SIGNAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
Condensed Balance Sheet
(In thousands)
(Unaudited)
June 30 December 31
Liabilities and Shareholders' Equity 1994 1993
Current liabilities:
Short-term borrowings and
current maturities of long-term
debt $ 9,247 $ 9,334
Accounts payable 149,230 131,300
Accrued expenses 146,051 177,829
Income taxes 23,860 7,385
328,388 325,848
Long-term debt, less current
maturities 250,740 191,382
Accrued postretirement and
postemployment obligations 163,404 173,693
Other liabilities 8,461 8,732
Total long-term liabilities 422,605 373,807
Shareholders' equity:
Common stock, authorized 150,000
shares; issued 63,532 shares
at June 30, 1994 and 63,360
shares at December 31, 1993 77,254 77,082
Additional paid-in capital 276,975 271,958
Retained earnings 611,367 583,099
Cumulative translation adjustments (3,436) (8,483)
Common stock in treasury, at cost;
16,287 shares at June 30, 1994
and 16,017 shares at
December 31, 1993 (406,339) (398,470)
Total shareholders' equity 555,821 525,186
$1,306,814 $1,224,841
See accompanying notes to financial statements
<PAGE>
GENERAL SIGNAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
Condensed Statement of Cash Flows
(In thousands)
(Unaudited)
Increase (Decrease) in Cash
and Cash Equivalents
Six Months Ended June 30,
1994 1993
CASH FLOWS FROM OPERATING ACTIVITIES:
Earnings before extraordinary charge
and cumulative effect of accounting
change $ 49,578 $ 37,412
Adjustments to reconcile net earnings
to net cash from operating
activities:
Depreciation and amortization 27,183 24,770
Pension credits (6,500) (6,235)
Other, net (2,713) 13,708
Changes in working capital (53,560) (51,571)
Net cash from operating activities 13,988 18,084
CASH FLOWS FROM INVESTING ACTIVITIES:
Dispositions 19,110 95,917
Capital expenditures (36,329) (24,838)
Acquisitions (20,463) (7,735)
Other, net (3,207) 2,701
Net cash from investing activities (40,889) 66,045
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in short and long-term
borrowings 59,105 (173,285)
Dividends paid (21,330) (18,989)
Issuance of common stock 2,722 134,465
Repurchase of common stock (6,675) - -
Extraordinary charge - - (6,576)
Net cash from financing activities 33,822 (64,385)
Effect of exchange rate changes
on cash 215 (337)
Net change in cash and cash
equivalents 7,136 19,407
Cash and cash equivalents at
beginning of period 1,253 16,455
Cash and cash equivalents at end
of period $ 8,389 $ 35,862
See accompanying notes to financial statements.
<PAGE>
GENERAL SIGNAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
Notes to Condensed Financial Statements
(Unaudited)
1. The accompanying unaudited financial statements reflect all
adjustments (consisting solely of normal, recurring items)
necessary for the fair presentation of results for these
interim periods. These results are based upon generally
accepted accounting principles consistently applied with those
used in the preparation of the company's 1993 Annual Report on
Form 10-K.
2. Inventories June 30, December 31,
1994 1993
(In thousands)
Finished goods $ 66,065 $ 56,066
Work-in-process 68,402 63,343
Raw material and purchased parts 121,436 103,985
Total FIFO cost 255,903 223,394
Excess of FIFO cost over LIFO
inventory value (26,387) (27,108)
Net carrying value $ 229,516 $ 196,286
3. Business Segment Information Three Months Ended June 30,
1994 1993
(In thousands)
Net sales:
Process Controls $ 189,300 $ 182,500
Electrical Controls 152,300 135,600
Industrial Technology 85,200 68,400
$ 426,800 $ 386,500
Operating earnings:
Process Controls $ 19,500 $ 6,100
Electrical Controls 10,900 4,900
Industrial Technology 13,900 11,500
Dispositions and restructurings - - 12,100(1)
Total operating earnings before
unallocated expenses, equity
income and interest 44,300 34,600
Equity income (100) 300
Interest expense (2,800) (4,600)
Unallocated expenses (4,200) (1,500)
Earnings before income taxes $ 37,200 $ 28,800
<PAGE>
3. Business Segment Information Six Months Ended June 30,
(cont.) 1994 1993
(In thousands)
Net sales:
Process Controls $ 372,700 $ 359,500
Electrical Controls 286,800 273,600
Industrial Technology 155,800 130,600
$ 815,300 $ 763,700
Operating earnings:
Process Controls $ 42,300 $ 23,600
Electrical Controls 20,500 14,200
Industrial Technology 24,300 20,900
Dispositions and restructurings - - 12,100(1)
Total operating earnings before
unallocated expenses, equity
income and interest 87,100 70,800
Equity income 600 500
Interest expense,net (5,500) (10,500)
Unallocated expenses (7,100) (5,200)
Earnings before income taxes $ 75,100 $ 55,600
(1)Includes $42.6 million of excess SEO reserves, less $30.5 million of
restructuring charges.
4. Property, Plant and Equipment June 30, December 31,
1994 1993
(in thousands)
Property, plant and equipment,
at cost $ 687,399 $ 635,320
Accumulated depreciation and
amortization (394,214) (371,967)
Property, plant and equipment,
net $ 293,185 $ 263,353
5. Supplemental Information-Statement of Cash Flows
Six Months Ended June 30,
1994 1993
(in thousands)
Cash paid for:
Interest $ 6,232 $ 11,450
Income taxes $ 1,123 $ 2,616
<PAGE>
6. Acquisitions
During the first half of 1994, the company completed three purchase
acquisitions.
Company Acquired Description of Business
Benjamin Signals Audible and visual signal
products
Assets of Berger Industries, Inc. Steel fittings products
Neer Manufacturing Co., Inc. Zinc die-cast fittings
No long-term liabilities were assumed in conjunction with these
acquisitions.
7. Repurchase of Shares
In March 1994, the company's Board of Directors approved a program
to repurchase up to 3.4 percent or 1.6 million shares of the common
stock outstanding at that time. These shares will be purchased
systematically from time to time over the next two years in open
market transactions and will be used to offset dilution from the
expected increased exercise of employee stock options arising from
the company's new executive stock ownership program. As of June
30, 1994, 207,100 shares have been repurchased under this program.<PAGE>
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Results of Operations-Second Quarter 1994 Compared With Second Quarter 1993
Second Quarter
1994 1993 Change
Net sales $426.7 $386.5 10.4%
Domestic sales increased in 1994 by approximately 13.3 percent,
helped by higher orders and the company's bolt-on acquisitions in
1994 (3.1 percent). International sales were approximately 20.9
percent of the company's net sales compared to 22.9 percent in
1993.
Sales in the Process Controls sector increased 3.7 percent from
year ago levels primarily from higher activity in mixing,
laboratory, instrumentation and pump equipment. Sector sales also
increased from the acquisition of Layne & Bowler in late 1993.
The Electrical Controls sector sales were up 12.3 percent from 1993
levels. Sales of broadcast equipment and conduit fittings improved
significantly during the quarter. Shipments of power conditioning
equipment also improved, particularly overseas.
Sales in the Industrial Technology sector were up 24.6 percent from
1993. Shipments of OEM automotive components improved from an
accelerated automotive recall campaign and sales of fare collection
and vending equipment were higher. The sector's sales also were
affected by the inclusion of certain low-margin units formerly
treated as divested.
Second Quarter
1994 1993 Change
Gross profit $122.3 $110.1 (1) 11.1%
Percentage of net
sales 28.7% 28.5%
(1) Adjusted to exclude non-recurring charges of $12.0 million.
Gross profit as a percentage of net sales improved slightly on
higher sales. Included in 1993 gross margins were LIFO reserve
liquidations of $0.7 million. There were no LIFO liquidations in
the comparable 1994 quarter.
<PAGE>
Second Quarter
1994 1993 Change
Selling, general and
administrative expenses $82.3 $76.7 7.3%
Percentage of net sales 19.3% 19.8%
The ratio of selling, general and administrative expenses to sales
improved as a result of the restructuring of certain operations and
continued focus on cost management. Pension credits of $3.5
million and $3.4 million for 1994 and 1993, respectively, were
included in selling, general and administrative expenses. Retiree
medical expense was reduced to $0.5 million in 1994 from $1.7
million in 1993 due to lower estimated cost trend rates and 1993
plan changes. The company recorded insurance expense of $0.6
million in 1994 and $3.5 million in 1993, with the reduction
principally reflecting the improved experience with workers'
compensation and general liability insurance.
Second Quarter
1994 1993 Change
Operating earnings $40.0 $33.5 19.4%
Percentage of net sales 9.4% 8.7%
Operating earnings for the Process Controls sector increased 38.3
percent to $19.5 million in 1994. 1993 results included a $2.3
million charge to conform Revco's accounting practices to the
company's accounting policies and practices.
Electrical Controls sector operating earnings were up 22.5 percent
to $10.9 million in 1994. This improvement resulted from the
substantial increase in profitability for the power conditioning
equipment business, and the continued strong results in broadcast
equipment and conduit fittings businesses.
The Industrial Technology sector operating earnings increased 20.9
percent to $13.9 million in 1994. This improvement is attributable
primarily to strong showings in the automotive equipment and
telecommunications businesses.
Second Quarter
1994 1993 Change
Net interest expense $2.8 $4.7 (40.4%)
Percentage of net sales 0.7% 1.2%
Net interest expense decreased as a result of the reduction of
higher-rate debt during the latter part of the second quarter of
1993 and generally lower debt levels in 1994.
<PAGE>
Earnings before extraordinary charge were $25.0 million for the
second quarter of 1994 compared to $19.5 million for the second
quarter of 1993. Average shares outstanding in 1994 were 7.5
percent higher than in 1993. The company's effective tax rate was
32.8 percent in 1994 compared with 32.5 percent in 1993. The 1994
tax rate included benefits of 1.7 percent arising from adjustments
to prior year tax liabilities and 2.4 percent from the recognition
of certain foreign and state net operating loss carryforwards.
Results of Operations - First Half 1994 Compared to First Half 1993
Six Months
1994 1993 Change
Net sales $815.3 $763.7 6.8%
Domestic sales rose 8.0 percent in 1994, with the improvement
attributable to higher orders and the company's bolt-on
acquisitions (2.4 percent). International sales in 1994 totalled
21.9 percent of the company's net sales, compared to 22.8 percent
in 1993. Foreign sales improved 2.1 percent in 1994 and export
sales increased 3.5 percent, reflecting a moderately improving
international business.
Sales in the Process Controls sector increased 3.7 percent from
year ago levels from increased shipments of pumps, industrial
mixing equipment and laboratory equipment. In addition, the
Process Controls sector benefitted from the acquisition of Layne &
Bowler in late 1993.
The Electrical Controls sector sales increased 4.8 percent. This
increase was from stronger demand for conduit fittings and power
conditioning equipment, partially offset by weaker demand for fire
safety controls products. In addition, the Electrical Controls
sector's sales reflected the acquisition of Neer Manufacturing and
Benjamin Signals.
The Industrial Technology sector, showing a 19.3 percent
improvement in sales, experienced strong demand for
telecommunications equipment, OEM automotive components, and bus
and rail fare equipment. The sector's sales also were helped by
the inclusion of certain low-margin units that were formerly
treated as divested.
<PAGE>
Six Months
1994 1993 Change
Gross profit $233.9 (1) $220.1 (1) 6.2%
Percentage of
net sales 28.7% 28.8%
(1) Adjusted to exclude non-recurring charges ($12.0 million
in 1993) and credits ($4.0 million in 1994).
Gross profit as a percentage of net sales remained flat. Included
in gross margins in 1994 and 1993 were $0.7 million and $1.8
million, respectively, of LIFO reserve liquidations resulting from
the company's aggressive inventory management policies that lowered
costs and inventory levels at certain units of the company.
Six Months
1994 1993 Change
Selling, general and
administrative expenses $157.2 $154.1 2.0%
Percentage of net sales 19.3% 20.2%
The ratio of selling, general and administrative expenses to sales
improved over year ago levels benefitting from the restructuring
activities undertaken since mid-1993 at certain units of the
company, and the company's continued cost management efforts.
Pension credits of $6.5 million and $6.2 million for the six months
ended June 30, 1994 and 1993, respectively, were included in
selling, general and administrative expenses. Retiree medical
expense was reduced to $1.8 million in 1994 from $4.0 million in
1993 because of lower estimated cost trend rates and 1993 plan
changes. The company recorded insurance expense of $1.7 million in
1994 and $6.2 million in 1993, with the reduction principally
reflecting improved experience with workers' compensation and
general liability insurance.
Six Months
1994 1993 Change
Operating earnings $80.7 $66.1 22.1%
Percentage of net sales 9.9% 8.7%
Operating earnings in the Process Controls sector improved 21.2
percent to $38.3 million (excluding a $4.0 million other
postretirement benefits curtailment gain) in 1994 from $31.6
million (excluding non-recurring charges of $8.0 million) in 1993.
1993 results included a $2.3 million charge to conform Revco's
accounting practices to the company's accounting policies and
practices.
Electrical Controls sector operating earnings were up 12.6 percent
to $20.5 million from 1993 earnings of $18.2 million, excluding a
1993 second quarter charge of $4.0 million. The improved operating
results came from five percent higher sales and the benefits of the
company's restructuring activities undertaken during 1993 and 1994.
The Industrial Technology sector operating earnings were 16.3
percent higher than 1993 results, primarily from the continued
strong results from the company's telecommunications and automotive
equipment businesses.
Six Months
1994 1993 Change
Net interest expense $5.6 $10.5 (46.7%)
Percentage of net sales 0.7% 1.4%
Net interest expense decreased as a result of the extinguishment of
higher-rate debt during the second quarter of 1993 and generally
lower debt levels in 1994.
Earnings before extraordinary charge and cumulative effect of
accounting change were $49.6 million in 1994 compared to $37.4
million in 1993. The company recognized a $25.3 million charge in
1993 to adopt FAS 112, "Employers' Accounting for Postemployment
Benefits," and a $6.6 million extraordinary charge for early
extinguishment of debt, resulting in net earnings of $5.5 million.
The company's effective tax rate was 34.0 percent in 1994 compared
with 32.7 percent in 1993. The 1994 tax rate included benefits of
1.7 percent arising from adjustments to prior year tax liabilities
and 1.2 percent from recognizing certain foreign and state net
operating loss carryforwards.
Financial Condition - June 30, 1994 Compared to December 31, 1993
Operations generated cash of $14.0 million in 1994, compared to
$18.1 million in 1993. Excluding proceeds from dispositions of
$19.1 million in 1994, working capital grew approximately $50
million. Accounting for most of the growth (exclusive of
acquisitions), accounts receivable increased $16.8 million
reflecting record 1994 sales levels and inventory increased $24.2
million in anticipation of strong product shipments. Operations in
1993 included non-cash company matches (in treasury shares) of
employee savings plan contributions.
Included in 1994 operating cash flows were expenditures of $7.2
million for restructuring activities, $5.5 million in severance
pay, and $2.6 million for the consolidation of the company's
Lindberg unit with Revco. These expenditures were charged against
accruals. Management anticipates that these expenditures will
result in lower future costs from higher productivity. 1993
operating cash flows included reductions in assets held for sale
and expenditures related to the divestiture of the semiconductor
equipment operations ($32.5 million).
Earnings for 1994 included several non-cash items, including
depreciation, pension credits and a curtailment gain on other
postretirement benefits that resulted from the reduction of
employment levels at a Process Controls unit. In addition, normal,
recurring adjustments to various provisions and valuation accounts
(related principally to receivables, inventories and warranties) as
a result of changes in estimates resulted in charges to operations
of $7.3 million in 1994 and $14.0 million in 1993, without cash
impact.
<PAGE>
Proceeds from the dispositions of semiconductor equipment
operations were $19.1 million and related semiconductor assets
divested and charges incurred were $23.8 million in 1994, with no
impact on income during the period. The company used $20.5 million
for acquisitions and $36.3 million for capital expenditures.
Dividends paid totalled $21.3 million, and additional amounts
borrowed during the six months equalled $59.1 million. $6.7
million was expended to repurchase common stock under a repurchase
program authorized by the Board in March.
Long-term debt-to-capitalization (net of cash) was 30.4 percent at
June 30, 1994 compared to 26.6 percent at December 31, 1993,
reflecting the increased borrowings.
At December 31, 1993, the company had a $43.2 million valuation
allowance established against its gross deferred tax assets of
approximately $224 million. There were no significant changes to
the deferred tax assets nor the valuation allowance since year-end.
The valuation allowance was based on management's assessment that
it was more likely than not that the net deferred tax assets will
be realized through future taxable earnings or alternative tax
strategies. In the event that the tax benefits relating to the
valuation allowance are subsequently realized, $6.6 million of such
benefits would reduce goodwill, while $36.6 million of such
benefits would reduce income tax expense.
The company is well-positioned to finance future working capital
requirements and capital expenditures through current earnings and
significant available credit facilities.
Other Matters
As a producer of capital goods and equipment, the results of the
company's businesses can vary with the relative strength of the
economy. Demand for products in the Process Controls sector
follows the demand for durable goods orders, and strength in heavy
industrial and utility markets are key to their success. The
Electrical Controls sector depends upon several markets,
principally the construction, automotive, and computer equipment
industries. The Industrial Technology sector depends on several
markets, primarily in automotive, mass transportation, and
telecommunications equipment. Mass transportation depends upon
continued Federal and local government spending, and
telecommunications is dependent upon continued research and
development and the continued success of new products. While no
one marketplace or industry has a major impact on the company's
operations or results, the inherent pace of technological changes
presents certain risks that the company monitors carefully.
Success within all of the company's businesses is dependent upon
the timely introduction and acceptance of new products.<PAGE>
PART II: OTHER INFORMATION
Item 2. Changes in Securities.
On April 21, 1994, the shareholders approved that the total
number of shares that may be issued by the company be
increased to 160,000,000 from 85,000,000, including
previously authorized 10,000,000 shares that are issuable
as preferred stock.
Item 4. Submission of Matters to a Vote of Security Holders
(a) The Annual Meeting of Shareholders of the Registrant (the
"Meeting") was held on April 21, 1994.
(b) The Registrant solicited proxies for the Meeting pursuant
to Regulation 14; there was no solicitation in opposition
to management's nominees for directors as listed in the
Proxy Statement, and all such nominees were elected.
(c) In addition to the election of directors, the shareholders
ratified the appointment of auditors.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits.
3.1 Restated Certificate of Incorporation of General
Signal Corporation, as amended through April 21,
1994, as filed on Form 10-Q/A on June 10, 1994.
3.2 By-laws of General Signal Corporation, as amended
through April 21, 1994, as filed on Form 10-Q/A on
June 10, 1994.
12.0 Calculation of Ratios of Earnings to Fixed Charges.
(b) No reports were filed on Form 8-K.
<PAGE>
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 SIGNAL CORPORATION
/s/ Terry J. Mortimer
Terry J. Mortimer
Vice President and Controller
Chief Accounting Officer
DATE: August 10, 1994
<PAGE>
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 SIGNAL CORPORATION
Terry J. Mortimer
Vice President and Controller
Chief Accounting Officer
DATE: August 10, 1994
<PAGE>
Exhibit (12.0)
GENERAL SIGNAL CORPORATION
Calculation of Ratios of Earnings to Fixed Charges
(Dollars in thousands)
Six Months
Ended
Years Ended December 31, June 30,
1989 1990 1991 1992 1993 1994
Earnings:
Earnings (loss) before
income taxes $108,482 $(25,193) $89,451 $18,786 $94,398 $75,118
Add: fixed charges 54,526 47,724 40,62 6 37,029 23,440 10,396
$163,008 $22,531 $130,077 $55,815 $117,838 $85,514
Fixed charges:
Interest expense $44,759 $37,557 $32,193 $28,629 $18,240 $6,810
One-third of rent
expense 9,767 10,167 8,433 8,400 5,200 3,586
$54,526 $47,724 $40,626 $37,029 $23,440 $10,396
Ratio 2.99 .47(1) 3.20 1.51 5.03 8.23
(1) Earnings are inadequate to cover fixed charges by an amount of
approximately $25 million.
