FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended July 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........
Commission File No. 001-08772
HUGHES SUPPLY, INC.
Incorporated in the State I.R.S. Employer I.D.
of Florida Number 59-0559446
Post Office Box 2273
20 North Orange Avenue, Suite 200
Orlando, Florida 32802
Registrant's Telephone Number, including area code: 407/841-4755
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 [ ]
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Common Stock Outstanding as of August 14, 1995
$1 Par Value 6,549,837
Page 1
HUGHES SUPPLY, INC.
FORM 10-Q
Index
Page No.
Part I. Financial Information
Item 1. Financial Statements
Consolidated Balance Sheets as of
July 31, 1995 and January 27, 1995 3 - 4
Consolidated Statements of Income for
the Three Months Ended July 31, 1995
and 1994 5
Consolidated Statements of Income for the
Six Months Ended July 31, 1995 and 1994 6
Consolidated Statements of Cash Flows for the
Six Months Ended July 31, 1995 and 1994 7
Notes to Consolidated Financial Statements 8 - 9
Item 2. Management's Discussion and Analysis of
Financial Condition and Results
of Operations 10 - 12
Part II. Other Information
Item 4. Submission of Matters to a Vote of Security
Holders 13
Item 6. Exhibits and Reports on Form 8-K 13 - 17
Signatures 18
Index of Exhibits Filed with This Report 19
Page 2
HUGHES SUPPLY, INC.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets
(dollars in thousands)
July 31, January 27,
1995 1995
----------- ------------
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 2,802 $ 3,192
Accounts receivable, less allowance for
losses of $6,334 and $4,787 137,149 122,143
Inventories 121,137 119,686
Deferred income taxes 9,886 8,921
Other current assets 3,408 6,479
--------- ---------
Total current assets 274,382 260,421
--------- ---------
Property, Plant and Equipment, at cost:
Land 13,482 13,360
Buildings and improvements 45,253 41,776
Transportation equipment 19,403 19,409
Furniture, fixtures and equipment 20,654 19,738
Property under capital leases 10,794 10,794
--------- ---------
Total 109,586 105,077
Less accumulated depreciation and
amortization (54,018) (51,846)
--------- ---------
Net property, plant and equipment 55,568 53,231
--------- ---------
Deferred Income Taxes 2,148 1,999
Other Assets 20,624 13,242
--------- ---------
$ 352,722 $ 328,893
========= =========
The accompanying notes are an integral part of these consolidated
financial statements.
Page 3
HUGHES SUPPLY, INC.
Consolidated Balance Sheets - continued
(dollars in thousands)
July 31, January 27,
1995 1995
----------- -----------
(unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current portion of long-term debt $ 1,031 $ 1,019
Accounts payable 71,771 71,563
Accrued compensation and benefits 9,833 9,723
Other current liabilities 15,214 12,795
--------- ---------
Total current liabilities 97,849 95,100
--------- ---------
Long-Term Debt, less current portion:
Notes and subordinated debentures 109,196 97,857
Capital lease obligations 2,583 3,061
--------- ---------
Total long-term debt 111,779 100,918
--------- ---------
Other Noncurrent Liabilities 1,742 1,540
--------- ---------
Total liabilities 211,370 197,558
--------- ---------
Commitments and Contingencies
Shareholders' Equity:
Preferred stock - -
Common stock-6,318,048 and
6,148,599 shares issued 6,318 6,149
Capital in excess of par value 41,152 37,722
Retained earnings 94,856 89,152
--------- ---------
142,326 133,023
Less treasury stock-62,841 and
108,988 shares, at cost (974) (1,688)
--------- ---------
Total shareholders' equity 141,352 131,335
--------- ---------
$ 352,722 $ 328,893
========= =========
The accompanying notes are an integral part of these consolidated
financial statements.
Page 4
HUGHES SUPPLY, INC.
Consolidated Statements of Income (unaudited)
(in thousands, except per share data)
Three months ended July 31,
1995 1994
----------- -----------
Net Sales $ 260,474 $ 202,619
Cost of Sales 207,574 161,663
--------- ---------
Gross Profit 52,900 40,956
--------- ---------
Operating Expenses:
Selling, general and administrative 41,805 32,706
Depreciation and amortization 2,314 2,093
Provision for doubtful accounts 726 727
--------- ---------
Total operating expenses 44,845 35,526
--------- ---------
Operating Income 8,055 5,430
--------- ---------
Non-Operating Income and (Expenses):
Interest and other income, net 1,193 700
Interest expense (1,943) (1,119)
--------- ---------
(750) (419)
--------- ---------
Income Before Income Taxes 7,305 5,011
Income Taxes 3,075 2,003
--------- ---------
Net Income $ 4,230 $ 3,008
========= =========
Earnings Per Share:
Primary $ .66 $ .51
========= =========
Fully diluted $ .66 $ .51
========= =========
Average Shares Outstanding:
Primary 6,385 5,943
========= =========
Fully diluted 6,401 5,943
========= =========
Dividends Per Share $ .07 $ .05
========= =========
The accompanying notes are an integral part of these consolidated
financial statements.
Page 5
HUGHES SUPPLY, INC.
Consolidated Statements of Income (unaudited)
(in thousands, except per share data)
Six months ended July 31,
1995 1994
----------- -----------
Net Sales $ 494,239 $ 386,520
Cost of Sales 393,762 309,163
--------- ---------
Gross Profit 100,477 77,357
--------- ---------
Operating Expenses:
Selling, general and administrative 81,693 63,077
Depreciation and amortization 4,552 4,142
Provision for doubtful accounts 1,189 1,412
--------- ---------
Total operating expenses 87,434 68,631
--------- ---------
Operating Income 13,043 8,726
--------- ---------
Non-Operating Income and (Expenses):
Interest and other income, net 2,060 1,443
Interest expense (3,678) (2,254)
--------- ---------
(1,618) (811)
--------- ---------
Income Before Income Taxes 11,425 7,915
Income Taxes 4,744 3,237
--------- ---------
Net Income $ 6,681 $ 4,678
========= =========
Earnings Per Share:
Primary $ 1.06 $ .84
========= =========
Fully diluted $ 1.06 $ .81
========= =========
Average Shares Outstanding:
Primary 6,299 5,596
========= =========
Fully diluted 6,321 5,961
========= =========
Dividends Per Share $ .14 $ .10
========= =========
The accompanying notes are an integral part of these consolidated
financial statements.
Page 6
HUGHES SUPPLY, INC.
Consolidated Statements of Cash Flows (unaudited)
(in thousands)
Six months ended July 31,
1995 1994
----------- -----------
Increase (Decrease) in Cash and Cash
Equivalents:
Cash flows from operating activities:
Cash received from customers $ 481,450 $ 375,082
Cash paid to suppliers and employees (472,033) (375,816)
Interest received 1,501 1,108
Interest paid (3,457) (1,731)
Income taxes paid (7,191) (2,139)
--------- ---------
Net cash provided by (used in)
operating activities 270 (3,496)
--------- ---------
Cash flows from investing activities:
Proceeds from sale of property, plant
and equipment 553 446
Capital expenditures (6,110) (6,788)
Business acquisitions, net of cash (4,532) (905)
--------- ---------
Net cash used in
investing activities (10,089) (7,247)
--------- ---------
Cash flows from financing activities:
Net borrowing under
short-term debt arrangements 11,386 12,701
Principal payments on:
Long-term notes (844) (106)
Capital lease obligations (398) (363)
Proceeds from issuance of common shares
under stock option plans 150 528
Purchase of common shares (65) (210)
Dividends paid (800) (523)
--------- ---------
Net cash provided by
financing activities 9,429 12,027
--------- ---------
Net Increase (Decrease) in Cash and
Cash Equivalents (390) 1,284
Cash and Cash Equivalents:
Beginning of period 3,192 1,078
--------- ---------
End of period $ 2,802 $ 2,362
========= =========
The accompanying notes are an integral part of these consolidated
financial statements.
Page 7
HUGHES SUPPLY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited) (dollars in thousands, except per share data)
1. In the opinion of the Company, the accompanying unaudited
consolidated financial statements contain all adjustments
(consisting only of normal recurring accruals) necessary to
present fairly the financial position as of July 31, 1995, the
results of operations for the three months and six months ended
July 31, 1995 and 1994, and cash flows for the six months then
ended.
2. During the six months ended July 31, 1995, the Company acquired
several wholesale distributors of materials to the construction
industry for cash and common stock. These acquisitions have been
accounted for as purchases and did not have a material effect on
the consolidated financial statements. Results of operations of
these companies from their respective dates of acquisition have
been included in the consolidated financial statements.
3. On August 1, 1995 the Company acquired all the common stock of
Moore Electric Supply, Inc. ("Moore") in exchange for
approximately 291,000 shares of the Company's common stock.
Moore is a wholesale distributor of electrical products with five
outlets in North Carolina and South Carolina. The merger will be
accounted for as a pooling of interests and, accordingly,
historical financial data will be restated to include Moore. The
following pro forma data summarizes the combined results of
operations of the Company and Moore as though the merger had
occurred at the beginning of fiscal year 1995.
Three months ended July 31,
1995 1994
----------- -----------
Net sales $ 277,913 $ 216,621
Net income 4,780 3,154
Earnings per share:
Primary .71 .51
Fully diluted .71 .51
Six months ended July 31,
1995 1994
----------- -----------
Net sales $ 526,535 $ 413,124
Net income 7,604 4,891
Earnings per share:
Primary 1.15 .83
Fully diluted 1.15 .81
Page 8
HUGHES SUPPLY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
(unaudited) (dollars in thousands, except per share data)
4. On July 31, 1995, the Company's revolving credit and line of
credit agreement with a group of banks was amended. The
agreement, as amended, now permits the Company to borrow up to
$160,000 (subject to borrowing limitations under the agreement) -
$125,000 long-term, expiring June 30, 1998, and $35,000 line of
credit convertible to a term note due two years from conversion
date.
5. The following is a reconciliation of net income to net cash
provided by (used in) operating activities:
Six months ended July 31,
1995 1994
---------- ----------
Net income $ 6,681 $ 4,678
Adjustments to reconcile net
income to net cash provided by
(used in) operating activities:
Depreciation 3,854 3,718
Amortization 698 424
Provision for doubtful accounts 1,189 1,412
(Gain) on sale of property,
plant and equipment (308) (154)
Undistributed (earnings) losses
of affiliate 46 (65)
Changes in assets and liabilities:
net of effects of acquisitions:
(Increase) decrease in:
Accounts receivable (13,086) (11,554)
Inventories 3,107 (14,410)
Other current assets 3,099 2,635
Other assets (860) 326
Increase (decrease) in:
Accounts payable and accrued
expenses (2,126) 7,730
Accrued interest and income
taxes (1,112) 2,836
Other noncurrent liabilities 202 143
Decrease (increase) in deferred
income taxes (1,114) (1,215)
---------- ----------
Net cash provided by (used in)
operating activities $ 270 $ (3,496)
========== ==========
Page 9
HUGHES SUPPLY, INC.
PART I. FINANCIAL INFORMATION - continued
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Material Changes in Results of Operations
Net Sales:
Net sales were $260.5 million for the quarter ended July 31, 1995, an
increase of 29% over the prior year second quarter. Net sales for the
six months were $494.2 million which was 28% ahead of last year.
Although the economy has been slowing throughout much of the
Southeast, commercial and industrial construction activity has
improved over the past two years. Newly-acquired and opened wholesale
outlets provided 20 and 17 percentage points of the 29% and 28%
increases for the three and six month periods, respectively.
Management expects commercial construction activity to continue at
current levels and believes that recent declines in interest rates
should positively impact residential construction for the remainder of
the year which should have a positive impact on the Company's results.
Gross Profit:
Gross profit and gross margin for the three and six months ended July
31, 1995 and 1994 were as follows (dollars in thousands):
<TABLE>
<CAPTION>
1995 1994
Gross Gross Gross Gross Variance
Profit Margin Profit Margin Amount %
<S> <C> <C> <C> <C> <C> <C>
Three months ended $ 52,900 20.3% $ 40,956 20.2% $ 11,944 29.2%
Six months ended $ 100,477 20.3% $ 77,357 20.0% $ 23,120 29.9%
</TABLE>
The improvement in gross margins continues to be due to heightened
construction activity as well as purchasing economies from increased
volume.
Operating Expenses:
Operating expenses for the three and six month periods ended July 31,
1995 and 1994 were as follows (dollars in thousands):
<TABLE>
<CAPTION>
1995 1994
% of % of Variance
Amount Net Sales Amount Net Sales Amount %
<S> <C> <C> <C> <C> <C> <C>
Three months ended $ 44,845 17.2% $ 35,526 17.5% $ 9,319 26.2%
Six months ended $ 87,434 17.7% $ 68,631 17.8% $ 18,803 27.4%
</TABLE>
Approximately 19 and 15 percentage points of the 26% and 27% increases
in operating expenses for the three and six months ended July 31,
1995,
Page 10
respectively, are attributable to recent acquisitions and newly-opened
wholesale outlets. Higher insurance and transportation costs continue
to be primarily responsible for operating expenses increasing over
expected amounts (due to sales growth) in existing operations. Labor
costs associated with new product offerings (i.e. primarily pool
supplies) has also contributed to higher operating expenses. As sales
of the new products develop, the percentage of operating expenses to
net sales should show further improvement.
Non-Operating Income and Expenses:
Interest expense increased from $1.1 million for the three months
ended July 31, 1994 to $1.9 million for the three months ended July
31, 1995. Approximately 32% of the increase is attributable to higher
interest rates. Higher average borrowing resulting from growth
accounted for 68% of the increase.
Interest expense for the six months ended July 31, 1995 was $3.7
million compared to $2.3 million in the prior year. Higher interest
rates were responsible for approximately 54% of the increase and
higher borrowing levels for the remainder.
Income Taxes:
The effective tax rates for the three and six months ended July 31,
1995 and 1994 were as follows:
1995 1994
Three months ended 42.1% 40.0%
Six months ended 41.5% 40.9%
The change in rates is due to fluctuations of nondeductible expenses.
Net Income:
Net income for the second quarter increased 41% to $4.2 million.
Fully-diluted earnings per share for the second quarter were $.66
compared to $.51 in the prior year. For the six months ended July 31,
1995 net income reached $6.7 million, a 43% increase over the six
months ended July 31, 1994. Fully-diluted earnings per share for the
six months ended July 31, 1995 and 1994 were $1.06 and $.81,
respectively.
Liquidity and Capital Resources
The Company continues to maintain greater than 75% of total assets as
current assets. Working capital at July 31, 1995 amounted to $176.5
million compared to $165.3 million at January 27, 1995. The working
capital ratio remained relatively unchanged - 2.8 to 1 at July 31,
1995 compared to 2.7 to 1 at January 27, 1995. Accounts receivable
and inventories at July 31, 1995 were $15.0 million and $1.5 million
higher,
Page 11
respectively, than at January 27, 1995. Despite these increases,
turnover for these assets improved. Inventory turnover was 6.5 and
6.1 times for the six months ended July 31, 1995 and 1994,
respectively. Accounts receivable turnover for these periods was 7.3
and 7.2 times, respectively.
Cash payments for business acquisitions totaled $4.5 million for the
six months ended July 31, 1995. Funding was provided by borrowing
under existing credit arrangements. In addition, approximately
207,000 shares of common stock valued at $4.1 million were issued for
the acquisitions. The acquisitions were for wholesale distributors of
electrical, electric utility, pool equipment and supplies, and water
systems with facilities in Pennsylvania, Ohio, Georgia, Alabama and
South Carolina. These operations are expected to positively impact
results of operations over the remainder of the fiscal year. The
Company completed the acquisition of Moore Electric Supply, Inc. on
August 1, 1995 (see Note 3 of the Notes to Consolidated Financial
Statements). This acquisition will be accounted for as a pooling of
interests in the Company's third quarter.
Expenditures for property and equipment were $6.1 million for the six
months ended July 31, 1995 compared to $6.8 million for the six months
ended July 31, 1994. These expenditures are expected to be
approximately $10 million for fiscal year 1996.
The Company's bank financing has been amended to increase the
Company's borrowing capacity. It now consists of $160 million
unsecured credit facility, which includes a $125 million long-term
revolving credit facility and a $35 million line of credit convertible
to a term note, as well as a $6 million short-term line of credit.
The Company's financial condition remains strong and the Company has
the resources necessary, with approximately $59 million in unused debt
capacity (subject to borrowing limitations under long-term debt
covenants), to take advantage of growth and business acquisition
opportunities and to fund ongoing operating requirements. Future
expansion will continue to be financed on a project-by-project basis
through additional borrowing, or, as circumstances allow, through the
issuance of common stock.
Page 12
HUGHES SUPPLY, INC.
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
(a) Annual Meeting of Shareholders. The Company's 1995
Annual Meeting of Shareholders (the "Annual Meeting")
was held on May 23, 1995.
(b) Election of Directors. Proxies for the Annual Meeting
were solicited by management pursuant to Regulation 14
under the Securities Exchange Act of 1934 ("Regulation
14") and there was no solicitation of proxies in
opposition to managements nominees listed in the Proxy
Statement. All of management's nominees listed in the
Proxy Statement were elected.
(c) Other Matters Voted Upon. In addition to the election
of directors referred to above, the following matter
was voted upon at the Annual Meeting:
Approval of Stock Award Provisions of Senior
Executives' Long-Term Incentive Bonus Plan.
Shareholders approved the stock award provisions of the
Senior Executives' Long-Term Incentive Bonus Plan ("the
Long-Term Plan"). The Long-Term Plan was adopted by
the Board of Directors on March 15, 1995 as an ongoing
long-term performance based incentive bonus plan which
would permit the Board to provide incentive
compensation to reward key senior executives for
achieving specified Company performance goals adopted
by the Board. The shareholders approved the stock
award provisions of the Long-Term Plan by the following
vote: 4,658,211 shares voted for approval; 257,127
shares voted against approval; and 30,166 shares
abstaining from voting.
A written description of the Long-Term Plan is set
forth under "Approval of Stock Award Provisions of
Senior Executives' Long-Term Incentive Bonus Plan" in
the Proxy Statement. The Long-Term Plan is filed as
Exhibit 10.9 to this Report and, by this reference, is
incorporated herein.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits Filed.
(2) Plan of acquisition, reorganization, arrangement,
liquidation or succession - not applicable.
Page 13
(3) Articles of incorporation and by-laws.
3.1 Articles of incorporation, as amended, filed as
Exhibit 3.1 to Form 10-Q for the quarter ended
July 31, 1994.
3.2 Composite By-Laws, as amended, filed as Exhibit
3.2 to Form 10-Q for the quarter ended July 31,
1994.
(4) Instruments defining the rights of security holders,
including indentures.
4.1 Specimen Stock Certificate representing shares of
the Company's common stock, $1.00 par value, filed
as Exhibit 4.2 to form 10-Q for the quarter ended
October 31, 1984.
4.2 Resolution Approving and Implementing Shareholder
Rights Plan filed as Exhibit 4.4 to Form 8-K dated
May 17, 1988.
(10) Material contracts.
10.1 Lease Agreements with Hughes, Inc.
(a) Orlando Trucking, Garage and Maintenance
Operations dated December 1, 1971, filed as
Exhibit 13(n) to Registration No. 2-43900.
Letter dated April 15, 1992 extending lease
from month to month, filed as exhibit 10.1(a)
to Form 10-K for the fiscal year ended
January 31, 1992.
(b) Leases effective March 31, 1988, filed as
exhibit 10.1(c) to Form 10-K for the fiscal
year ended January 27, 1989;
Sub-item Property
(1) Clearwater
(2) Daytona Beach
(3) Fort Pierce
(4) Lakeland
(5) Lakeland - Lightstyle
(6) Leesburg
(7) Orlando Electrical Operation
(8) Orlando Plumbing Operation
(9) Orlando Utility Warehouse
(10) St. Petersburg
(11) Sarasota
(12) Venice
(13) Winter Haven
Page 14
(c) Lease amendment letter between Hughes,
Inc. and the Registrant, dated December
1, 1986, amending Orlando Truck
Operations Center and Maintenance Garage
lease, filed as Exhibit 10.1(i) to
Form10-K for the fiscal year ended
January 30, 1987.
(d) Lease agreement dated June 1, 1987,
between Hughes, Inc. and the Registrant,
for additional Sarasota property, filed
as Exhibit 10.1(j) to Form 10-K for the
fiscal year ended January 29, 1988.
(e) Leases dated March 11, 1992, filed as
Exhibit 10.1(e) to Form 10-K for the
fiscal year ended January 31, 1992.
Sub-item Property
(1) Tallahassee Electrical Operation
(2) Gainesville Electrical Operation
(3) Valdosta Electrical Operation
10.2 Hughes Supply, Inc. 1988 Stock Option Plan
filed as Exhibit A to Prospectus included in
Registration No. 33-26468.
10.3 Form of Supplemental Executive Retirement
Plan Agreement entered into between the
Registrant and eight of its executive
officers, filed as Exhibit 10.6 to Form 10-K
for fiscal year ended January 30, 1987.
10.4 Directors' Stock Option Plan, as amended,
filed as Exhibit 10.4 to Form 10-Q for the
quarter ended July 31, 1994.
10.5 Asset Purchase Agreement with Accord
Industries Company, dated October 9, 1990,
for sale of Registrant's manufacturing
operations, filed as Exhibit 10.7 to Form
10-K for fiscal year ended January 25, 1991.
10.6 Lease Agreement dated June 30, 1993 between
Donald C. Martin and Electrical Distributors,
Inc., filed as Exhibit 10.6 to Form 10-K for
fiscal year ended January 28, 1994.
Page 15
10.7 Consulting Agreement dated June 30, 1993
between Hughes Supply, Inc. and Donald C.
Martin, filed as Exhibit 10.7 to Form 10-K
for fiscal year ended January 28, 1994.
10.8 Written description of senior executives'
long-term incentive bonus plan for fiscal
year 1996 incorporated by reference to the
description of the bonus plan set forth under
the caption "Approval of the Stock Award
Provisions of the Senior Executives' Long-
Term Incentive Bonus Plan for Fiscal Year
1996" on pages 26 and 27 of the Registrant's
Proxy Statement Annual Meeting of
Shareholders To Be Held May 24, 1994.
10.9 Senior Executives' Long-Term Incentive Bonus
Plan, including the senior executives' long-
term incentive bonus plan for fiscal year
1997 (the "1997 Performance Plan") and the
senior executives' long-term incentive bonus
plan for fiscal year 1998 (the "1998
Performance Plan") incorporated by reference
therein, filed as Exhibit 10.9 to Form 10-K
for the fiscal year ended January 27, 1995.
10.10 Lease Agreement dated June 30, 1994 between
Donald C. Martin and Electrical Distributors,
Inc., filed as Exhibit 10.10 to Form 10-K for
the fiscal year ended January 27, 1995.
(11) Statement re computation of per share earnings.
11.1 Summary schedule of earnings per share
calculation.
(15) Letter re unaudited interim financial information - not
applicable.
(18) Letter re change in accounting principles - not
applicable.
(19) Report furnished to security holders - not applicable.
(22) Published report regarding matters submitted to vote of
security holders - not applicable.
(23) Consents of experts and counsel - not applicable.
(24) Power of attorney - not applicable.
Page 16
(27) Financial Data Schedule.
27.1 Financial Data Schedule (filed electronically
only).
(99) Additional exhibits - not applicable.
(b) Reports on Form 8-K.
There were no reports on Form 8-K filed during the quarter
ended July 31, 1995.
Page 17
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.
HUGHES SUPPLY, INC.
Date: September 7, 1995 By: /s/ David H. Hughes
David H. Hughes, Chairman of
the Board and Chief Executive
Officer
Date: September 7, 1995 By: /s/ J. Stephen Zepf
J. Stephen Zepf, Treasurer,
Chief Financial Officer and
Chief Accounting Officer
Page 18
INDEX OF EXHIBITS FILED WITH THIS REPORT
11.1 Summary schedule of earnings per share calculations.
27.1 Financial Data Schedule (filed electronically only).
Page 19
Exhibit 11.1
HUGHES SUPPLY, INC.
SUMMARY SCHEDULE OF EARNINGS PER SHARE CALCULATIONS
(in thousands, except per share amounts)
Potentially dilutive securities:
a) Options for common stock, issued under stock option plan.
b) 7% Convertible subordinated debentures, due May 1, 2011,
redeemed April, 1994.
Three Months
Ended July 31,
1995 1994
Line
----
SHARES
------
1 Average shares outstanding 6,253 5,789
2 Incremental shares (options) -
Assuming options outstanding at end of period
were exercised at beginning of period (or time
of issuance, if later) and proceeds were used
to purchase shares at average market price
during the period 132 154
---------- ----------
3 Shares used in calculating Earnings Per
Common and Common Equivalent Share 6,385 5,943
4 Incremental shares (options) -
Assuming options outstanding at end of period
were exercised at beginning of period (or time
of issuance, if later) and proceeds were used
to purchase shares at the higher of the
average market price during the period or the
market price at the end of the period; and
that options exercised during the period were
exercised at the beginning of the period(or
time of issuance, if later) and the proceeds
were used to purchase shares at the market
price at the date of exercise 16 -
5 Incremental shares (debentures) -
Assuming debentures were converted at
beginning of period (or time of issuance, if
later) at most advantageous (for security
holder) conversion rate that becomes
effective within 10 years - -
---------- ----------
6 Shares used in calculating Earnings Per
Common Share - Assuming Full Dilution 6,401 5,943
========== ==========
EARNINGS
--------
7 Net income per financial statements, used in
calculating Earnings Per Common Share and
Earnings Per Common and Common Equivalent
Share $ 4,230 $ 3,008
8 Incremental earnings (debentures) -
Assuming interest charges applicable to
convertible debentures (and nondiscretionary
adjustments that would have been made based
on net income) are taken into account in
determining balance of income applicable to
common stock - -
---------- ----------
9 Earnings used in calculating Earnings Per
Common Share - Assuming Full Dilution $ 4,230 $ 3,008
========== ==========
Three Months
Ended July 31,
1995 1994
Line
----
RESULTING PER SHARE DATA
------------------------
10 Earnings per common share (Line 7/Line 1) $ .68 $ .52
=========== ===========
11 Earnings per common share and common
equivalent share (Line 7/Line 3) $ .66 $ .51
=========== ===========
12 Dilution 2.9% 1.9%
=========== ===========
13 Earnings per common share - assuming full
dilution (Line 9/Line 6) $ .66 $ .51
=========== ===========
14 Dilution 2.9% 1.9%
=========== ===========
15 Used in statements of income:
[ ] Line 10, if dilution less than 3%, or antidilution, exists for all
periods.
[ X ] Lines 11 and 13, if dilution >= 3% for any period.
Six Months
Ended July 31,
1995 1994
Line
----
SHARES
------
1 Average shares outstanding 6,178 5,424
2 Incremental shares (options) -
Assuming options outstanding at end of period
were exercised at beginning of period (or time
of issuance, if later) and proceeds were used
to purchase shares at average market price
during the period 121 172
---------- ----------
3 Shares used in calculating Earnings Per
Common and Common Equivalent Share 6,299 5,596
4 Incremental shares (options) -
Assuming options outstanding at end of period
were exercised at beginning of period (or time
of issuance, if later) and proceeds were used
to purchase shares at the higher of the
average market price during the period or the
market price at the end of the period; and
that options exercised during the period were
exercised at the beginning of the period(or
time of issuance, if later) and the proceeds
were used to purchase shares at the market
price at the date of exercise 22 5
5 Incremental shares (debentures) -
Assuming debentures were converted at
beginning of period (or time of issuance, if
Six Months
Ended July 31,
1995 1994
Line
----
later) at most advantageous (for security
holder) conversion rate that becomes
effective within 10 years - 360
---------- ----------
6 Shares used in calculating Earnings Per
Common Share - Assuming Full Dilution 6,321 5,961
========== ==========
EARNINGS
--------
7 Net income per financial statements, used in
calculating Earnings Per Common Share and
Earnings Per Common and Common Equivalent
Share $ 6,681 $ 4,678
8 Incremental earnings (debentures) -
Assuming interest charges applicable to
convertible debentures (and nondiscretionary
adjustments that would have been made based
on net income) are taken into account in
determining balance of income applicable to
common stock - 166
---------- ----------
9 Earnings used in calculating Earnings Per
Common Share - Assuming Full Dilution $ 6,681 $ 4,844
========== ==========
RESULTING PER SHARE DATA
------------------------
10 Earnings per common share (Line 7/Line 1) $ 1.08 $ .86
=========== ===========
11 Earnings per common share and common
equivalent share (Line 7/Line 3) $ 1.06 $ .84
=========== ===========
12 Dilution 1.9% 2.3%
=========== ===========
13 Earnings per common share - assuming full
dilution (Line 9/Line 6) $ 1.06 $ .81
=========== ===========
14 Dilution 1.9% 5.8%
=========== ===========
15 Used in statements of income:
[ ] Line 10, if dilution less than 3%, or antidilution, exists for all
periods.
[ X ] Lines 11 and 13, if dilution >= 3% for any period.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
THE CONSOLIDATED BALANCE SHEET OF HUGHES SUPPLY, INC. AS OF
JULY 31, 1995, AND THE RELATED STATEMENT OF INCOME FOR THE SIX
MONTHS THEN ENDED AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000049029
<NAME> HUGHES SUPPLY, INC.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JAN-26-1996
<PERIOD-END> JUL-31-1995
<CASH> 2,802
<SECURITIES> 0
<RECEIVABLES> 143,483
<ALLOWANCES> 6,334
<INVENTORY> 121,137
<CURRENT-ASSETS> 274,382
<PP&E> 109,586
<DEPRECIATION> 54,018
<TOTAL-ASSETS> 352,722
<CURRENT-LIABILITIES> 97,849
<BONDS> 111,779
<COMMON> 6,318
0
0
<OTHER-SE> 135,034
<TOTAL-LIABILITY-AND-EQUITY> 352,722
<SALES> 494,239
<TOTAL-REVENUES> 494,239
<CGS> 393,762
<TOTAL-COSTS> 393,762
<OTHER-EXPENSES> 86,245
<LOSS-PROVISION> 1,189
<INTEREST-EXPENSE> 3,678
<INCOME-PRETAX> 11,425
<INCOME-TAX> 4,744
<INCOME-CONTINUING> 6,681
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6,681
<EPS-PRIMARY> 1.06
<EPS-DILUTED> 1.06
</TABLE>
