SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
FORM 10-Q
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended JANUARY 28, 1995
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 Number 0-1653
GENESEE CORPORATION
(Exact name of registrant as specified in its charter)
STATE OF NEW YORK 16-0445920
(State or other jurisdiction of
incorporation or organization) (I.R.S. Employer
Identification No.)
445 St. Paul Street, Rochester, New York 14605
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (716)546-1030
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
As of the date of this report, the Registrant had the following shares of
common stock outstanding:
Number of Shares
Class Outstanding
Class A Common Stock (voting), 209,885
par value $.50 per share
Class B Common Stock (non-voting), 1,392,136
par value $.50 per share
1
<TABLE>
<CAPTION>
GENESEE CORPORATION AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
January 28, 1995 and April 30, 1994
UNAUDITED AUDITED
(Dollars in Thousands) January 28, 1995 April 30, 1994
<S>
<C> <C>
ASSETS
Current assets:
Cash and cash equivalents $13,514 7,159
Marketable securities available for sale, at market 32,590 30,800
Trade accounts receivable, less allowance for doubtful accounts
of $660 at January 28, 1995; $677 at April 30, 1994 9,226 11,479
Inventories, at lower of cost (FIFO) or market;
Finished goods 4,005 3,479
In process 1,382 1,056
Raw materials 8,433 6,178
Total Inventories 13,820 10,713
Deferred income tax assets - current 1,816 2,073
Real estate mortgage receivable - current 5,807 0
Other current assets 1,956 809
Total current assets 78,729 63,033
Property, plant and equipment, at cost 120,052 127,502
Less accumulated depreciation 91,405 88,410
Net property, plant and equipment 28,647 39,092
Investment in and notes receivable from unconsolidated
real estate partnership 4,358 4,514
Real estate mortgage receivable 0 6,000
Investment in:
Direct financing leases 2,580 2,967
Leveraged leases 21,064 19,350
Total investments in leases 23,644 22,317
Deferred income tax assets - long term 12,902 13,679
Other non current assets 1,842 2,077
Total assets $150,122 150,712
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current installments of long term debt of consolidated
real estate partnerships $258 258
Accounts payable 11,634 11,982
Accrued compensation and other expenses 4,334 3,204
Federal and state income and excise taxes payable 1,223 414
Federal and state beer taxes 1,460 2,147
Deferred income taxes - current 961 912
Accrued postretirement benefits - current 566 566
Total current liabilities 20,436 19,483
Deferred income taxes - long term 18,924 18,718
Accrued postretirement benefits - long term 15,876 15,273
Mortgage notes payable on real estate investments 3,840 9,611
Other liabilities 308 70
Total liabilities 59,384 63,155
Minority interests in consolidated subsidiaries 1,461 1,454
Shareholders' equity:
Common stock Class A 105 105
Common stock Class B 753 753
Additional paid-in capital 5,882 5,882
Retained earnings 87,921 83,385
Less unrealized loss on marketable securities, net of income taxes 1,376 0
93,285 90,125
Less treasury stock 4,008 4,022
Total shareholders' equity 89,277 86,103
Total liabilities and shareholders' equity $150,122 150,712
<FN>
See accompanying notes to consolidated financial statements.
</FN>
</TABLE>
2
<TABLE>
<CAPTION>
GENESEE CORPORATION AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED STATEMENTS
OF EARNINGS AND RETAINED EARNINGS
Thirteen Weeks Ended January 28, 1995 and January 29, 1994
(Dollars in Thousands,
Except Per Share Data) UNAUDITED
1995 1994
<S>
<C> <C>
Revenues $41,464 41,992
Less:
Federal and state beer taxes 8,867 9,458
Sales returns and allowances 813 741
9,680 10,199
Net revenues 31,784 31,793
Cost of sales 22,947 23,335
Gross profit 8,837 8,458
Selling, general and administrative expenses 7,092 8,357
Operating income 1,745 101
Investment income 837 1,966
Other income / (expense), net (34) (44)
Interest of minority partners in earnings of
consolidated subsidiaries (162) (97)
Earnings before income taxes 2,386 1,926
Income taxes 942 748
Net earnings - $.90 per share
in 1995, $.74 in 1994 1,444 1,178
Retained earnings at beginning of period 86,477 82,416
Retained earnings at end of period $87,921 $83,594
<FN>
See accompanying notes to consolidated financial statements.
</FN>
</TABLE>
3
<TABLE>
<CAPTION>
GENESEE CORPORATION AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED STATEMENTS
OF EARNINGS AND RETAINED EARNINGS
Thirty Nine Weeks Ended January 28, 1995 and January 29, 1994
(Dollars in Thousands,
Except Per Share Data) UNAUDITED
1995 1994
<S>
<C> <C>
Revenues $131,148 139,711
Less:
Federal and state beer taxes 29,196 32,294
Sales returns and allowances 2,419 2,127
31,615 34,421
Net revenues 99,533 105,290
Cost of sales 71,460 77,180
Gross profit 28,073 28,110
Selling, general and administrative expenses 22,850 26,410
Operating income 5,223 1,700
Investment income 2,420 4,142
Other income / (expense), net (194) (307)
Gain on sale of interest in real estate partnership 1,670 0
Interest of minority partners in earnings of
consolidated subsidiaries (483) (315)
Earnings before income taxes and cumulative
effect of change in accounting principle 8,636 5,220
Income taxes 3,418 2,052
Net earnings before cumulative effect
of change in accounting principle 5,218 3,168
Cumulative effect to May 1, 1994 of change in
accounting for investments in debt and equity securities 760 0
Net earnings - $3.73 per share
in 1995, $1.98 in 1994 5,978 3,168
Retained earnings at beginning of period 83,385 81,867
Less: Dividends - $.90 per share in 1995
and $.90 per share in 1994 1,442 1,441
Retained earnings at end of period $87,921 $83,594
<FN>
See accompanying notes to consolidated financial statements.
</FN>
</TABLE>
4
<TABLE>
<CAPTION>
GENESEE CORPORATION AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Thirty Nine Weeks Ended January 28, 1995 and January 29, 1994
UNAUDTIED
(Dollars in Thousands)
1995 1994
<S>
<C> <C>
Cash flows from operating activities:
Net Income $5,978 3,168
Adjustment to reconcile net income to net
cash provided by operating activities:
Cumulative effect of change in accounting principle (760) 0
Depreciation 3,835 4,711
Provision for unrealized losses on short-term investments 0 270
Interest of minority partners in earnings of consolidated subsidiaries 483 315
Gain on investment in real estate partnership (1,670) 0
Changes in non-cash assets and liabilities:
(Increase) decrease in :
Trade accounts receivable 2,253 858
Inventories (3,107) 120
Deferred income tax assets 1,444 (1,001)
Other assets (912) 676
(Decrease) increase in :
Accounts payable (348) (3,313)
Accrued compensation and other expenses 1,130 1,416
Income taxes payable 809 763
Federal and state beer taxes (687) 441
Deferred income tax liabilities 255 1,333
Accrued postretirement benefits 603 900
Other liabilities 238 (668)
Net cash provided by operating activities 9,544 9,989
Cash flows from investing activities:
Capital expenditures (2,667) (4,978)
Sale of marketable securities 9,434 29,522
Purchases of marketable securities (12,250) (25,198)
Investments in and advances to unconsolidated real estate partnerships 156 (1,801)
Principal payments on real estate mortgage receivable 193 (183)
Proceeds from sale of property, plant, and equipment 10,947 0
Net investment in direct financing and leveraged leases (1,327) (1,416)
Contributions (withdrawals) by minority interest (476) (142)
Net cash provided (used) by investing activities 4,010 (4,196)
Cash flows from financing activities:
Principal payments on long term debt of consolidated real estate partnerships (5,771) 0
Net proceeds from treasury stock transactions 14 0
Payment of dividends (1,442) (1,441)
Net cash used by financing activities (7,199) (1,441)
Net increase in cash and cash equivalents 6,355 4,352
Cash and cash equivalents at beginning of period 7,159 3,227
Cash and cash equivalents at end of period $13,514 7,579
Supplemental disclosure of cash flow information:
Cash paid during the year for:
Income taxes $856 704
Interest paid on consolidated real estate investment mortgage debt $498 551
<FN>
See accompanying notes to consolidated financial statements.
</FN>
</TABLE>
5
GENESEE CORPORATION
Notes to Consolidated Financial Statements
NOTE (A) The weighted average number of Class A and Class B shares outstanding
used in the computation of net earnings per share is 1,602,021 for the thirteen
week period ended January 28, 1995 and 1,601,322 for the thirteen week period
ended January 29, 1994. The weighted average number of Class A and Class B
shares outstanding used in the computation of net earnings per share is
1,601,782 for the thirty nine weeks ended January 28, 1995 and 1,601,322 for the
thirty nine weeks ended January 29, 1994.
NOTE (B) The Corporation's consolidated financial statements enclosed herein
are unaudited with the exception of the Consolidated Balance Sheet at April 30,
1994 and, because of the seasonal nature of the business and the varying
schedule of its special sales efforts, these results are not necessarily
indicative of the results to be expected for the entire year.
NOTE (C) In the opinion of management, the interim financial statements reflect
all adjustments, consisting of only normal recurring items (with the exception
of the accounting changes on May 1, 1994 to adopt Statement of Financial
Accounting Standards No. 115, Accounting for Certain Investments in Debt and
Equity Securities) which are necessary for a fair presentation of the results
for the periods presented.
NOTE (D) The Corporation's net earnings reported for the thirty-nine weeks of
fiscal 1995 include $760,000 (net of income taxes) relating to the cumulative
effect to May 1, 1994 of a change in the accounting treatment for investments in
debt and equity securities. Effective at the beginning of fiscal 1995, the
Corporation was required to adopt Statement of Financial Accounting Standards
No. 115, Accounting for Certain Investments in Debt and Equity Securities (SFAS
115). The Corporation has classified all of its marketable debt and equity
securities as available for sale. The Available for Sale classification means
that such securities are shown on the Corporation's balance sheet at market
value and that any change in the market value of these securities is reflected
as a separate component of stockholders' equity on the balance sheet until such
time that a security is sold. At that time, the Corporation will record a
realized gain or loss on its statement of earnings. The cumulative effect to May
1, 1994 of this accounting change relates to the fact that prior to and through
April 30, 1994, the Corporation had recorded $1.3 million in unrealized pre-tax
losses on its investment portfolio.
6
GENESEE CORPORATION
Item 2. Management's Discussion and Analysis of
Financial Condition & Results of Operations
Comparison of 13 weeks ended January 28, 1995 to 13 weeks ended January 29, 1994
Consolidated net revenues for the 13 weeks ended January 28, 1995 were
$31.8 million, which is roughly equal to consolidated net revenues reported for
the same period last year. Consolidated net earnings were $1.4 million, or $.90
per share in the 13 weeks this year, compared to net earnings of $1.2 million,
or $.74 per share, for the same period last year.
Genesee Brewing Company's net sales in the third quarter were $26.8
million, an increase of $1.0 million or 3.9% from last year's net sales of $25.8
million. Barrelage increased 1% to 445,000 barrels in the third quarter this
year. The increase in net revenues and barrel sales for Genesee Brewing Company
was primarily the result of rapid growth in the sales of JW Dundee's Honey Brown
Lager, a higher priced specialty brew that was introduced in January 1994.
Over the past few years, consumer trends in the malt beverage industry have
favored innovative new brands and packages. Genesee Brewing Company has
addressed this trend by continuing to introduce new brands and package
configurations. During the third quarter this year, Genesee Brewing Company
introduced Koch's Ice Beer, extending its line of popularly priced Kochs
products. In addition, Genesee Brewing Company introduced 30 and 36 can package
configurations in several major markets in an effort to capitalize on the
continued popularity of can packages. Sales of these new products and packages
have helped to offset declining sales in Genesee Brewing Company's established
brands.
The increase in Genesee Brewing Company's third quarter net sales was also
the result of increased export sales. Export sales more than doubled in the
third quarter this year to 22,359 barrels as compared to 10,573 barrels for the
same period last year. The growth in export sales was the direct result of
renewed sales efforts and greater focus on the export market segment.
Genesee Brewing Company's net sales per barrel were up 3.7% for the third
quarter this year, compared to the third quarter last year primarily as a result
of a general price increase that went into effect late in fiscal 1994. A shift
in product mix to Genesee Brewing Company's higher-priced specialty products and
a $660,000 federal excise tax credit that was taken in the quarter also
contributed to the increase in net sales per barrel.
Net sales for Ontario Foods were $4.5 million in the third quarter,
compared to $5.1 million for the third quarter of fiscal 1994. The decline in
sales was attributable to the restructuring program initiated in August 1993
whereby several low profit product lines were eliminated. Ontario Foods
experienced higher sales during the third quarter last year than this year as
customers built inventories pending transition to other suppliers.
7
GENESEE CORPORATION
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations (continued)
Although overall sales were down in the third quarter of fiscal 1995,
Ontario Foods' private label business continued to grow. Private label sales for
the third quarter were approximately $394,000 higher than last year due in part
to continued growth in Ontario Foods' side dish business. Sales of these items
were up $183,000 in the third quarter this year compared to the third quarter
last year. In addition, late in the second quarter of this fiscal year, Ontario
Foods completed the acquisition of several private label product lines from a
New Jersey food processing company. Sales of these products amounted to $612,000
in the third quarter.
Consolidated gross profit was $8.8 million or 27.8% of net sales for the
third quarter this year compared to $8.5 million or 26.6% of net sales for the
same period last year. The improved gross profit was primarily attributable to
Genesee Brewing Company. Genesee Brewing Company's gross profit increased from
$7.0 million or 27.2% of net sales in the third quarter fiscal 1994, to $7.9
million or 29.3% of net sales in the third quarter fiscal 1995. This increase
resulted from the general price increase that went into effect late in fiscal
1994, a better brand and package mix, and continued efforts to contain or reduce
production costs. However, commencing January 1, 1995, the price of aluminum
cans increased approximately 40% in response to the recent increases and
volatility in worldwide aluminum prices. Since the price increase went into
effect late in the Corporation's third quarter, it did not significantly affect
third quarter profitability. However, if current prices for aluminum cans hold,
this will have a significant adverse effect on Genesee Brewing Company's cost of
sales in the future.
Selling, general and administrative expenses for the Corporation decreased
by $1.3 million or 15.1%, over the third quarter last year. The majority of this
decrease was attributable the Corporation's on-going cost containment efforts
and to a $1.1 million reduction in Genesee Brewing Company's marketing and media
expenditures this year compared to last. In addition, Ontario Foods'
restructuring program resulted in non-recurring restructuring costs of $158,000
incurred in the third quarter last year.
Consolidated operating income for the third quarter was $1.7 million
compared to operating income of $100,000 for the same period last year. This
improvement was primarily the result of improved performance by Genesee Brewing
Company. Genesee Brewing Company's third quarter operating income of $1.4
million represented a $1.5 million improvement over last year's third quarter
operating loss of $108,000. As already mentioned, improved volume and product
mix, a general price increase, and lower selling, general and administrative
spending all contributed to Genesee Brewing Company's operating performance.
Ontario Foods' third quarter operating income was $12,000 this year,
compared to a $181,000 operating loss last year. The improvement was primarily
due to continued growth in private label sales and to lower selling, general and
administrative expenses.
8
GENESEE CORPORATION
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations (continued)
Genesee Ventures, Inc. the Corporation's equipment leasing and real estate
investment subsidiary, reported operating income of $487,000 for the third
quarter of fiscal 1995, compared to $544,000 for the third quarter of fiscal
1994. The lower operating income was the result of the sale in August 1994 of
Genesee Venture's interest in a Columbus, Ohio apartment project. Genesee
Ventures' equity interest in the project had generated operating income of
$175,000 in the third quarter last year.
Consolidated investment income for the third quarter of fiscal 1995 was
down $1.1 million to $837,000. Fiscal 1994 investment income included
approximately $1.1 million of realized gains on marketable securities sold in
the third quarter last year when the Corporation restructured its portfolio.
During the third quarter of fiscal 1995, the Corporation recorded $123,000 of
realized losses on the sale of marketable securities.
In sum, the Corporation's consolidated earnings before income taxes totaled
$2.4 million for the third quarter of fiscal 1995, compared to $1.9 million last
year primarily as a result of improved performance by Genesee Brewing Company.
Comparison of 39 weeks ended January 28, 1995 to 39 weeks ended January 29,1994
The Corporation's consolidated net revenues for the 39 weeks ended January
28, 1995 were $99.5 million, down $5.8 million from consolidated net revenues
reported for the same period last year. Consolidated net earnings were $6.0
million, or $3.73 per share, this year compared to $3.2 million, or $1.98 per
share, for the same period last year.
Genesee Brewing Company's net sales in the first three quarters were $84.5
million, down $1.8 million from net sales of $86.3 million reported for the same
period last year. The lower net sales resulted from a 6.9% decline in barrel
volume which, in turn was attributable to continued competitive pressures in
Genesee Brewing Company's key markets. Genesee Brewing Company's established
brands have experienced the greatest decline as consumer preference continues to
favor new brands and product categories at the expense of established brands.
Genesee Brewing Company has responded by increasing the pace of new product and
package introductions over the past few years. These new product introductions
include Koch's Ice Beer, which was introduced in fiscal 1995, and Michael Shea's
Black & Tan, Genny Ice Beer, and JW Dundee's Honey Brown Lager, all introduced
in fiscal 1994. Sales of new products partially offset lower sales of Genesee
Brewing Company's established brands.
In addition to new brands and line extensions, Genesee Brewing Company
introduced new 30 and 36 can package configurations in fiscal 1995 to capitalize
on the continued popularity of can packages. Total sales of these new packages
was approximately 50,000 barrels through the first three quarters of fiscal
1995.
9
GENESEE CORPORATION
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations (continued)
Despite overall lower barrel volume this year compared to last year,
Genesee Brewing Company's net sales per barrel were up 5.1%, primarily as a
result of a general price increase that went into effect late in fiscal 1994. A
shift in product mix to Genesee Brewing Company's higher-priced specialty
products and a $660,000 federal excise tax credit also contributed to the
increase in net sales per barrel.
Net sales for Ontario Foods were $12.7 million in the first three quarters
of fiscal 1995, compared to $15.9 million for the first three quarters of fiscal
1994. The decline in sales was the result of the restructuring program mentioned
above. Although overall sales were down in the first three quarters of fiscal
1995, Ontario Foods' private label business showed continued growth. Private
label sales for the first three quarters of fiscal 1995 were approximately $1.4
million higher than last year as a result of increased sales of Ontario Foods'
side dish lines and the acquisition of several new product lines from a New
Jersey food processor.
The Corporation's consolidated gross profit margin was 28.2% of net sales
for the first three quarters this year compared to 26.7% of net sales for the
same period last year. The improved gross profit margin was primarily
attributable to Genesee Brewing Company. Genesee Brewing Company's gross profit
increased from $23.3 million or 27.0% of net sales in the first three quarters
of fiscal 1994, to $24.9 million or 29.5% of net sales in the first three
quarters of fiscal 1995. This increase was attributable to the general price
increase that went into effect late in fiscal 1994, a better brand and package
mix, and continued efforts to contain or reduce production costs. However,
commencing January 1, 1995, the price of aluminum cans increased substantially
in response to the recent increases and volatility in worldwide aluminum prices.
Since the price increase went into effect late in the Corporation's third
quarter, it did not significantly affect profitability through the first three
quarters. However, if the current prices of aluminum cans hold, this will have a
significant adverse effect on Genesee Brewing Company's cost of sales in the
future.
Selling, general and administrative expenses for the Corporation decreased
by $3.6 million, or 13.6%, over the first three quarters of last year. A portion
of this decrease was attributable to Ontario Foods' restructuring program which
resulted in staff reductions and other administrative cost savings. In addition,
Genesee Brewing Company's selling, general and administrative expenses were down
approximately $1.9 million from last year's levels due to lower selling
marketing and advertising expenditures and to a cost reduction program initiated
in response to lower barrel volume.
Consolidated operating income for the first three quarters was $5.2
million, compared to $1.7 million for the same period last year. The increase
was primarily attributable to improved profit performance by Genesee Brewing
Company and Ontario Foods.
Genesee Brewing Company's operating income for the first three quarters of
fiscal 1995 was $4.1 million, an increase of approximately $3.5 million over
operating profit of $617,000 reported for
10
GENESEE CORPORATION
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations (continued)
the same period last year. A general price increase, improved product mix, and
lower selling, general and administrative spending all contributed to Genesee
Brewing Company's strong profit performance.
Operating income reported by Ontario Foods increased for the first three
quarters this year to $108,000 from a loss of approximately $234,000 for the
same period last year. This improvement was the result of the continued cost
containment measures, improved production efficiencies and lower overhead
derived from last fall's restructuring program. In addition, $158,000 of
non-recurring restructuring costs contributed for last year's operating loss.
Genesee Ventures Inc., reported operating income unchanged at $1.7 million
for the first three quarters of fiscal 1995 compared to the first three quarters
of fiscal 1994 despite the sale of Genesee Ventures' interest in a Columbus,
Ohio apartment project.
Consolidated investment income for the first three quarters of fiscal 1995
totaled $2.4 million, compared to $4.1 million from the same period last year.
Fiscal 1994 investment income included approximately $1.5 million of net gains
on marketable securities sold in November and December 1993 as part of the
Corporation's plan to restructure its portfolio. For the first three quarters of
fiscal 1995, the Corporation recorded $106,000 of net realized losses on the
sale of marketable securities.
The Corporation's consolidated statement of earnings for the first three
quarters ended January 28, 1995 includes a $1.7 million gain on the sale of
Genesee Ventures' 89% equity interest in the partnership that owned a Columbus,
Ohio apartment project. The sale took place in August 1994.
Net earnings before cumulative effect of change in accounting principle was
$5.2 million in the first three quarters of fiscal 1995, compared to $3.2
million last year.
LIQUIDITY AND CAPITAL RESOURCES
Cash, cash equivalents, and marketable securities totaled $46.1 million on
January 28, 1995, compared to $38.0 million at April 30, 1994. The higher
balances were the result of proceeds received from the sale of Genesee Ventures'
interest in a Columbus, Ohio apartment project as well as improved cash flow at
Ontario Foods and Genesee Brewing Company during the first three quarters of
fiscal 1995.
11
GENESEE CORPORATION
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations (continued)
Prior to May 1, 1994, marketable securities were stated at the lower of
cost or market. The adoption of SFAS 115 effective May 1, 1994 (as more fully
described in Note D to the financial statements) required that debt and equity
securities be valued at market.
Inventories at January 28, 1995 were approximately $3.1 million higher than
the balances reported at April 30, 1994. Inventories at Genesee Brewing Company
increased due to the addition of new products. Ontario Foods' inventory also
contributed to the increase with the continuing expansion of existing products
lines and the acquisition of several new product lines from a New Jersey food
processor.
The Corporation holds a mortgage receivable in the amount of $5,807,000 due
in full on June 1, 1995. As of January 28, 1995 this receivable was a current
asset whereas at April 30, 1994 it was reported a non-current asset.
Current liabilities at January 28, 1995 were up $900,000 from fiscal year
end. This increase was primarily attributable to increased federal and state
income tax liability as a result of higher earnings by Genesee Brewing Company.
Mortgage notes payable on real estate investments totaled $3.8 million as
of January 28, 1995, compared to $9.6 million at April 30, 1994. The reduction
is a result of the sale of the interest in the Columbus, Ohio apartment complex
mentioned above. This sale also reduced the net property, plant, and equipment
amount shown on the Corporation's January 28, 1995 consolidated balance sheet.
During the third quarter of fiscal 1995, Genesee Brewing Company initiated
a plan to make major modifications to one of it's bottling lines. These
modifications will include installation of rotary labelers which will enhance
Genesee Brewing Company's ability to offer upscale packaging as part of it's
efforts to capitalize on the trend towards specialty brews. The capital project
is expected to be completed by the second quarter of fiscal 1996 and to cost in
excess of $3 million.
The Corporation expects to fund all future capital needs internally as it
has in the past. With respect to real estate and equipment leasing, such
investments may also include a debt component, generally obtained on a
non-recourse basis.
To enhance the Corporation's opportunities for future growth and to
capitalize on its strong financial condition, the Corporation's long term
strategy includes plans to seek investment opportunities outside its core
brewing business. The Corporation will continue to search for and develop such
opportunities.
12
GENESEE CORPORATION
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) No exhibits are being filed with this report.
(b) The Corporation did not file any reports on Form 8-K
during the quarter for which this report is filed.
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.
GENESEE CORPORATION
Date: 3/9/95 /s/ Robert N. Latella
Robert N. Latella
Executive Vice President
and Chief Operating Officer
Date: 3/9/95 /s/ Edward J. Rompala
Edward J. Rompala
Vice President and Treasurer
13
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S>
<C> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> APR-29-1995
<PERIOD-END> JAN-28-1995
<CASH> 13,514
<SECURITIES> 32,590
<RECEIVABLES> 9,886
<ALLOWANCES> 660
<INVENTORY> 13,820
<CURRENT-ASSETS> 78,729
<PP&E> 120,052
<DEPRECIATION> 91,405
<TOTAL-ASSETS> 150,122
<CURRENT-LIABILITIES> 20,436
<BONDS> 0
<COMMON> 858
0
0
<OTHER-SE> 88,419
<TOTAL-LIABILITY-AND-EQUITY> 150,122
<SALES> 131,148
<TOTAL-REVENUES> 131,148
<CGS> 71,460
<TOTAL-COSTS> 31,615
<OTHER-EXPENSES> 22,850
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 8,636
<INCOME-TAX> 3,418
<INCOME-CONTINUING> 5,218
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 760
<NET-INCOME> 5,978
<EPS-PRIMARY> 3.73
<EPS-DILUTED> 0
