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Previous: GEORGIA POWER CO, 35-CERT, 1995-04-21 |
Next: OPPENHEIMER TOTAL RETURN FUND INC, 497, 1995-04-21 |
<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For three months ended March 31, 1995 Commission File Number 1-6747
------------------ ------
The Gorman-Rupp Company
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Ohio 34-0253990
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
305 Bowman Street, P. O. Box 1217, Mansfield, Ohio 44901
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (419) 755-1011
------------------------
Indicate by check mark whether the registrant (1) has filed all reports
required to by 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
----- -----
Shares outstanding at March 31, 1995 -----
common, without par value, 8,578,574
Page 1 of 6 pages
<PAGE> 2
<TABLE>
PART I - FINANCIAL INFORMATION
THE GORMAN-RUPP COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(in thousands of dollars, except per share data)
<CAPTION>
Three Months Ended
March 31
1995 1994
--------- ---------
<S> <C> <C>
INCOME
Net sales $36,224 $38,118
Other income 120 104
--------- ---------
TOTAL INCOME 36,344 38,222
DEDUCTIONS FROM INCOME
Cost of products sold 26,924 28,386
Selling, general and
administrative expenses 5,320 4,908
--------- ---------
TOTAL DEDUCTIONS 32,244 33,294
--------- ---------
INCOME BEFORE INCOME TAXES 4,100 4,928
Income taxes 1,592 1,960
--------- ---------
NET INCOME $2,508 $2,968
========= =========
* Net Income Per Share $0.29 $0.35
* Dividends Paid Per Share $0.13 $0.12
* Average Shares Outstanding 8,578,698 8,579,633
<FN>
* Reflects the 3 for 2 stock split effective October 27, 1994
</TABLE>
<TABLE>
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands of dollars)
<CAPTION>
Three Months Ended
March 31
1995 1994
--------- ---------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $2,508 $2,968
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 1,255 1,078
Changes in operating assets and liabilities (3,112) (930)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital additions, net (2,032) (890)
Other (37) (138)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash dividends (1,116) (1,030)
Borrowings from bank 2,787 645
--------- ---------
NET INCREASE IN CASH
AND CASH EQUIVALENTS 253 1,703
CASH AND CASH EQUIVALENTS:
Beginning of year 3,062 2,782
--------- ---------
March 31 $3,315 $4,485
========= =========
</TABLE>
2
<PAGE> 3
<TABLE>
THE GORMAN-RUPP COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands of dollars)
<CAPTION>
March 31 December 31
1995 1994
ASSETS --------- ---------
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $3,315 $3,062
Accounts receivable 27,591 22,772
Inventories 32,364 30,814
Other current assets and deferred income taxes 3,231 3,422
--------- ---------
TOTAL CURRENT ASSETS 66,501 60,070
OTHER ASSETS 669 651
DEFERRED INCOME TAXES 5,727 5,500
PROPERTY, PLANT AND EQUIPMENT 78,695 76,663
Less allowances for depreciation 37,033 35,784
--------- ---------
PROPERTY, PLANT AND EQUIPMENT - NET 41,662 40,879
--------- ---------
TOTAL ASSETS $114,559 $107,100
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $5,765 $5,781
Payrolls and related liabilities,
accrued expenses 8,576 6,853
Income taxes 1,423 257
Notes payable to banks 5,225 3,500
--------- ---------
TOTAL CURRENT LIABILITIES 20,989 16,391
LONG TERM DEBT 5,777 4,715
PENSION LIABILITY 1,722 1,512
POSTRETIREMENT HEALTH BENEFITS OBLIGATION 23,084 22,874
SHAREHOLDERS' EQUITY
Common shares, without par value
authorized - 14,000,000 shares
* outstanding - 8,578,574 shares in 1995 and
8,579,633 shares in 1994 (after deducting
treasury shares of 286,602 in 1995 and 285,543
in 1994) at stated capital amount 5,112 5,115
Retained earnings 58,817 57,566
Translation adjustments (942) (1,073)
--------- ---------
TOTAL SHAREHOLDERS' EQUITY 62,987 61,608
--------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $114,559 $107,100
========= =========
<FN>
* Reflects the 3 for 2 stock split effective October 27, 1994
</TABLE>
3
<PAGE> 4
THE GORMAN-RUPP COMPANY AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
MARCH 31, 1995
NOTE A - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS
The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with generally accepted accounting
principles for interim financial information and with the instructions
to Form 10-Q and do not include all of the information and footnotes
required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for a
fair presentation have been included. Operating results for the three
month period ended March 31, 1995 are not necessarily indicative of
results that may be expected for the year ending December 31, 1995. For
further information, refer to the consolidated financial statements and
notes thereto included in the Company's Annual Report on Form 10-K for
the year ended December 31, 1994.
NOTE B - INVENTORIES
The major components of inventories are as follows:
<TABLE>
<CAPTION>
March 31 December 31
(Thousands of dollars) 1995 1994
--------- ---------
<S> <C> <C>
Raw materials and in-process $8,280 $7,883
Finished parts 20,832 19,834
Finished products 3,252 3,097
--------- ---------
$32,364 $30,814
========= =========
</TABLE>
4
<PAGE> 5
THE GORMAN-RUPP COMPANY AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
First Quarter 1995 vs First Quarter 1994
- ----------------------------------------
Net sales were $36,224,000 in 1995, a decrease of $1,894,000 or 5.0%
from the $38,118,000 in 1994. Most of the decrease was due to lower
sales at the Patterson Pump Company. The major portion of the decrease
at Patterson was a result of a contract with the government of Saudi
Arabia being substantially completed in 1994 and not recurring in 1995.
Other income was $120,000 in 1995 compared to $104,000 in 1994.
Cost of products sold in 1995 was $26,924,000 compared to $28,386,000
in 1994. As a percentage of net sales, cost of products sold in 1995
was 74.3% compared to 74.5% in 1994. Lower sales resulted in lower cost
of products sold.
Selling, general and administrative expenses increased to $5,320,000
in 1995 from $4,908,000 in 1994 with an increase in wages and payroll
related taxes being the single largest reason for the increase.
Expenses associated with the design and implementation of upgraded
information management systems also contributed to the increase.
Income before income taxes was $4,100,000 in 1995 compared to $4,928,000
in 1994, a decrease of $828,000. Income tax expense decreased from
$1,960,000 in 1994 to $1,592,000 in 1995, primarily as a result of a
decrease in profit. The effective income tax rate was 38.8% in 1995
compared to 39.8% in 1994.
Net income in 1995 of $2,508,000 decreased $460,000 from $2,968,000 in
1994. As a percent of net sales, net income was 6.9% in 1995 and 7.8%
in 1994. Net income per share was $.29 in 1995, a decrease of $.06
from $.35 in 1994.
FINANCIAL CONDITION
- -------------------
The Company continues to finance most of its capital expenditures and
working capital requirements through internally generated funds and bank
financing. The ratio of current assets to current liabilities was 3.2
to 1 at March 31, 1995 and 3.7 to 1 at December 31, 1994.
The Company presently has adequate working capital, adequate borrowing
capacity and a healthy liquidity position.
5
<PAGE> 6
PART II - OTHER INFORMATION
THE GORMAN-RUPP COMPANY AND SUBSIDIARIES
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits - 27 Financial Data Schedule
(b) Reports filed on Form 8-K during the Quarter Ended
March 31, 1995 - None
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.
The Gorman-Rupp Company
------------------------------
(Registrant)
Date April 21, 1995 Kenneth E. Dudley
----------------------
/s/ Kenneth E. Dudley
------------------------------
(Signature)
Treasurer & Principal
Financial Officer
6
<PAGE> 7
THE GORMAN-RUPP COMPANY AND SUBSIDIARIES
Form 10-Q
For the Quarter Ended March 31, 1995
Exhibit Volume - Table of Contents
Exhibits filed as part of the report
Sequential
number of
Exhibit page of
Number Exhibit Description full report
- ------- ------------------- -----------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000042682
<NAME> GORMAN-RUPP CO.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<CASH> 3,315
<SECURITIES> 0
<RECEIVABLES> 27,831
<ALLOWANCES> 240
<INVENTORY> 32,364
<CURRENT-ASSETS> 66,501
<PP&E> 78,695
<DEPRECIATION> 37,033
<TOTAL-ASSETS> 114,559
<CURRENT-LIABILITIES> 20,989
<BONDS> 0
<COMMON> 5,112
0
0
<OTHER-SE> 57,875
<TOTAL-LIABILITY-AND-EQUITY> 114,559
<SALES> 36,224
<TOTAL-REVENUES> 36,344
<CGS> 26,924
<TOTAL-COSTS> 32,244
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 71
<INTEREST-EXPENSE> 132
<INCOME-PRETAX> 4,100
<INCOME-TAX> 1,592
<INCOME-CONTINUING> 2,508
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,508
<EPS-PRIMARY> .29
<EPS-DILUTED> .29
</TABLE>
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