SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
(Mark One)
X Quarterly report pursuant to Section 13 or 15(d) of the Securities
- ----- Exchange Act of 1934.
For the quarterly period ended October 31, 1995 or
--------------------
Transition report pursuant to Section 13 or 15(d) of the Securities
- ----- Exchange Act of 1934.
For the transition period from to
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Commission file number 1-4615
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HOWELL INDUSTRIES, INC.
- ------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
MICHIGAN 38-0479830
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
17515 West Nine Mile Road, Suite 650, Southfield, Michigan 48075
- ------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (810) 424-8220
------------------
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
----- -----
Number of shares of common stock outstanding at October 31, 1995: 622,738
(1)
<PAGE>
Part I - Financial Information
<TABLE>
<CAPTION>
HOWELL INDUSTRIES, INC.
(A Michigan Corporation)
SOUTHFIELD, MICHIGAN
CONSOLIDATED BALANCE SHEETS
ASSETS
October 31, 1995 July 31, 1995
---------------- -------------
(Unaudited) (Note)
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 4,324,645 $ 2,979,374
Marketable securities, at cost 850,066 850,066
Accounts receivable, net 7,082,290 7,789,257
Cost of unbilled dies 623,082 271,036
Inventories (last in-first out):
Raw materials 1,794,900 1,208,602
Work in process 1,841,510 1,118,555
Finished goods 2,287,942 2,965,141
----------- -----------
Total inventories 5,924,352 5,292,298
Prepaid expenses 495,451 746,051
Deferred tax asset - current 4,000 4,000
----------- -----------
TOTAL CURRENT ASSETS 19,303,886 17,932,082
PROPERTY, PLANT AND EQUIPMENT-(At cost, 7,514,969 7,613,899
less accumulated depreciation of ----------- -----------
$14,297,738 and $13,920,608 at
10/31/95 and 7/31/95 respectively)
TOTAL $26,818,855 $25,545,981
=========== ===========
<FN>
Note: The balance sheet at July 31, 1995 has been taken from the audited
financial statements at that date, and condensed.
</TABLE>
(2)
<PAGE>
<TABLE>
<CAPTION>
HOWELL INDUSTRIES, INC.
(A Michigan Corporation)
SOUTHFIELD, MICHIGAN
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS' INVESTMENT
October 31, 1995 July 31, 1995
---------------- -------------
(Unaudited) (Note)
<S> <C> <C>
CURRENT LIABILITIES:
Accounts payable $ 3,913,775 $ 3,420,655
Accrued expenses 2,385,171 1,876,828
Taxes on income 183,725 30,199
Restructuring costs 96,952 97,855
----------- -----------
TOTAL CURRENT LIABILITIES 6,579,623 5,425,537
OTHER (Includes restructuring costs
of $200,000.) 869,320 906,045
DEFERRED FEDERAL TAXES ON INCOME 106,000 106,000
SHAREHOLDERS' INVESTMENT:
Common stock, no par value:
Authorized 2,500,000 shares,
issued and outstanding,
622,738 shares at 10/31/95
and at 7/31/95 593,584 593,584
Retained earnings 18,670,328 18,514,815
----------- -----------
TOTAL SHAREHOLDERS' INVESTMENT 19,263,912 19,108,399
----------- -----------
TOTAL $26,818,855 $25,545,981
=========== ===========
<FN>
Note: The balance sheet at July 31, 1995 has been taken from the audited
financial statements at that date, and condensed.
</TABLE>
(3)
<PAGE>
<TABLE>
<CAPTION>
HOWELL INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
For The For The
Three Months Ended Year Ended
October 31, 1995 July 31, 1995
------------------ -------------
(Unaudited) (Audited)
<S> <C> <C>
Balance, beginning $18,514,815 $24,670,564
Add:
Net profit for the period 311,197 1,556,818
----------- -----------
18,826,012 26,227,382
Deduct:
Cash dividend 155,684 683,238
Retirement of Common Stock -0- 7,029,329
----------- -----------
Balance, ending $18,670,328 $18,514,815
=========== ===========
</TABLE>
(4)
<PAGE>
<TABLE>
<CAPTION>
HOWELL INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF NET EARNINGS (UNAUDITED)
For the Three Months Ended
------------------------------------
October 31, 1995 October 31, 1994
---------------- ----------------
<S> <C> <C>
Net Sales $16,660,990 $17,465,568
Cost of Goods Sold 15,252,109 15,693,195
Selling, General and
Administrative Expenses 1,057,568 1,068,859
----------- -----------
Income From Operations 351,313 703,514
Other Income (Expense)
Net Other Income 118,884 179,707
----------- -----------
Earnings Before Income
Taxes 470,197 883,221
Taxes on Income 159,000 309,000
----------- -----------
Net Earnings $ 311,197 $ 574,221
=========== ===========
Earnings Per Share .50 .66
Average Number of Shares
Outstanding During the
Period 622,738 864,738
Dividends Per Share .25 .25
</TABLE>
The unaudited consolidated financial statements of Howell Industries, Inc. for
the three months ended October 31, 1995 and 1994 reflect all adjustments which
are, in the opinion of management, necessary to a fair statement of the
results for the interim periods. The operating results for the three months
ended October 31 are not necessarily indicative of results of operations for
an entire year.
(5)
<PAGE>
<TABLE>
<CAPTION>
HOWELL INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
For the Three For the Three
Months Ended Months Ended
October 31, 1995 October 31, 1994
---------------- ----------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Earnings $ 311,197 $ 574,221
Adjustments to reconcile net earnings
to net cash provided by operating
activities:
Depreciation and amortization 377,130 302,130
Other - reserves (36,725) (2,600)
Change in operating assets and liabilities:
Accounts receivable 706,967 (3,544,202)
Cost of unbilled dies (352,046) (262,351)
Inventories (632,054) 2,486,374
Prepaid expenses 250,600 (86,359)
Accounts payable and accrued expenses 1,001,463 1,648,815
Taxes on income 153,526 302,000
Restructuring costs (903) (384,782)
----------- -----------
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES 1,779,155 1,033,246
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale or purchases
of marketable securities -0- (6,197,271)
Proceeds from sale of equipment -0- 17,835
Capital expenditures (278,200) (344,418)
----------- -----------
NET CASH PROCEEDS FROM (USED IN)
INVESTING ACTIVITIES (278,200) (6,523,854)
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid (155,684) (216,184)
----------- -----------
NET CASH PROCEEDS FROM (USED IN)
FINANCING ACTIVITIES: (155,684) (216,184)
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 1,345,271 (5,706,792)
CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD 2,979,374 9,661,018
----------- -----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 4,324,645 $ 3,954,226
=========== ===========
</TABLE>
(6)
<PAGE>
HOWELL INDUSTRIES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
The decrease in net earnings for the fiscal quarter ended October 31, 1995 as
compared to the quarter ended October 31, 1994 was primarily attributable to
lower sales and higher steel prices.
The increase in net earnings for the quarter ended October 31, 1995 as
compared to the quarter ended July 31, 1995 was primarily attributable to
higher sales.
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
No Form 8-K was filed during the quarter.
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 duly authorized.
HOWELL INDUSTRIES, INC.
-------------------------------------
(Registrant)
By: /s/Morton Schiff
-------------------------------
Morton Schiff
President and Principal Financial
Officer
Date: November 28, 1995
---------------------
(7)
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUL-31-1996
<PERIOD-END> OCT-31-1995
<CASH> $ 4,324,645
<SECURITIES> 850,066
<RECEIVABLES> 7,082,290
<ALLOWANCES> 0
<INVENTORY> 5,924,352
<CURRENT-ASSETS> 19,303,886
<PP&E> 21,812,707
<DEPRECIATION> 14,297,738
<TOTAL-ASSETS> 26,818,855
<CURRENT-LIABILITIES> 6,579,623
<BONDS> 0
<COMMON> 593,584
0
0
<OTHER-SE> 18,670,328
<TOTAL-LIABILITY-AND-EQUITY> 26,818,855
<SALES> 16,660,990
<TOTAL-REVENUES> 16,779,874
<CGS> 15,252,109
<TOTAL-COSTS> 16,309,677
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 470,197
<INCOME-TAX> 159,000
<INCOME-CONTINUING> 311,197
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 311,197
<EPS-PRIMARY> .50
<EPS-DILUTED> 0
</TABLE>
