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 Quarter Ended: March 31, 1995 Commission File Number 1-5558
Katy Industries, Inc.
(Exact name of registrant as specified in its charter)
Delaware 75-1277589
(State of Incorporation) (I.R.S. Employer Identification No.)
6300 S. Syracuse Way, Suite 300, Englewood, Colorado 80111
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (303)290-9300
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 No X
Indicate the number of shares outstanding of each of the issuer's classes
of common stock as of the latest practicable date.
Class Outstanding at March 31, 1995
Common stock, $1 par value 9,076,387
KATY INDUSTRIES, INC.
FORM 10-Q
MARCH 31, 1995
INDEX
Page No.
PART I FINANCIAL INFORMATION
Condensed Consolidated Balance Sheets
March 31, 1995 and December 31, 1994 2
Statements of Condensed Consolidated Operations
Three months ended March 31, 1995 and 1994 4
Statements of Condensed Consolidated Cash Flows
Three months ended March 31, 1995 and 1994 5
Notes to Condensed Consolidated Financial Information 6
Management's Discussion and Analysis of
Financial Condition and Results of Operations 10
PART II OTHER INFORMATION
Item 1 Legal Proceedings 15
Item 6 Exhibits and Reports on Form 8-K 16
Signatures 16
<TABLE>
<CAPTION>
KATY INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
MARCH 31, 1995 AND DECEMBER 31, 1994
March 31, December 31,
1995 1994
(Thousands of Dollars)
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 2,607 $ 8,475
Marketable securities - available for sale 27,812 23,756
Accounts receivable, trade, net of allowance
for doubtful accounts of $3,943 and $3,183 28,147 20,423
Notes and other receivables, net of allowance
for doubtful notes of $504 and $854 3,270 2,112
Inventories - Note 1 45,903 31,312
Other current assets 13,413 13,784
Total current assets 121,152 99,862
OTHER ASSETS:
Investments, at equity, in unconsolidated
subsidiaries - Note 3 46,524 45,310
Investments, at cost - Note 4 411 406
Investment in waste-to-energy facility 11,647 11,759
Notes receivable, net of allowance for
doubtful notes of $2,500 1,568 2,283
Miscellaneous 10,593 4,982
Total other assets 70,743 64,740
PROPERTIES, at cost:
Land and improvements 5,275 4,868
Buildings and improvements 34,537 25,152
Machinery and equipment 55,473 56,743
95,285 86,763
Accumulated depreciation ( 48,608) ( 48,223)
Net properties 46,677 38,540
$238,572 $203,142
See Notes to Condensed Consolidated Financial Information.
</TABLE>
<TABLE>
<CAPTION>
KATY INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
MARCH 31, 1995 AND DECEMBER 31, 1994
March 31, December 31,
1995 1994
(Thousands of Dollars)
<S> <C> <C>
CURRENT LIABILITIES:
Notes payable - banks $ 26,558 $ 7,948
Accounts payable 10,996 6,807
Accrued compensation 5,614 6,180
Accrued expenses 29,428 25,060
Accrued interest and taxes 914 773
Current maturities, long-term debt 2,559 2,407
Dividends payable 646 646
Total current liabilities 76,715 49,821
LONG-TERM DEBT, less current maturities 13,568 10,572
OTHER LIABILITIES 36,580 31,759
MINORITY INTEREST 215 212
STOCKHOLDERS' EQUITY
Common stock, $1 par value, authorized
25,000,000 shares, issued 9,821,329
shares 9,821 9,821
Additional paid-in capital 51,111 51,111
Foreign currency translation
and other adjustments 2,207 2,676
Unrealized holding gain, net of tax 6,916 4,426
Retained earnings 54,282 55,587
Treasury stock, 803,942 shares ( 12,843) ( 12,843)
Total stockholders' equity 111,494 110,778
$238,572 $203,142
See Notes to Condensed Consolidated Financial Information.
</TABLE>
<TABLE>
<CAPTION>
KATY INDUSTRIES, INC.
STATEMENTS OF CONDENSED CONSOLIDATED OPERATIONS
THREE MONTHS ENDED MARCH 31, 1995 AND 1994
1995 1994
(Thousands of Dollars
Except Per Share Data)
<S> <C> <C>
Net sales $ 38,358 $ 38,423
Costs and expenses:
Cost of goods sold 26,456 27,036
Selling, general and administrative 10,954 9,863
Depreciation and amortization 1,378 1,544
Interest expense 418 520
Interest income ( 276) ( 1,225)
Other, net - Note 4 237 6,350
39,167 44,088
Loss from consolidated operations
before provision for income taxes ( 809) ( 5,665)
Benefit (Provision) for income taxes ( 628) 1,864
Loss from consolidated operations ( 1,437) ( 3,801)
Equity in income of unconsolidated
subsidiaries (net of tax) - Note 3 700 613
Net loss ($ 737) ($ 3,188)
Loss per share ($ .08) ($ .35)
Average shares outstanding (in thousands) 9,076 9,017
Dividends per share -
Common stock $1.00 par value $ .0625 $ .0625
See Notes to Condensed Consolidated Financial Information.
</TABLE>
<TABLE>
<CAPTION>
KATY INDUSTRIES, INC.
STATEMENTS OF CONDENSED CONSOLIDATED CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1995 AND 1994
1995 1994
(Thousands of Dollars)
<S> <C> <C>
Cash flows from operating activities:
Net loss ($ 737) ($ 3,188)
Write off of investment - 6,580
Gain on sale of assets ( 3) ( 4)
Adjustments to reconcile net loss
to net cash flows from operating
activities 929 ( 6,057)
Net cash flows from
operating activities 189 ( 2,669)
Cash flows from investing activities:
Proceeds from sale of assets 41 204
Collections of notes receivable 143 108
Purchase of subsidiary, net of cash
acquired ( 23,717) ( 2,226)
Capital expenditures ( 3,372) ( 731)
Net cash flows from
investing activities ( 26,905) ( 2,645)
Cash flows from financing activities:
Notes payable activity, net 18,267 ( 36)
Principal payments on long-term debt ( 1,150) ( 1,467)
Payment of dividends ( 567) ( 564)
Proceeds from issuance of
long-term debt 4,298 4
Net cash flows from
financing activities 20,848 ( 2,063)
Net (decrease) in cash and cash
equivalents ( 5,868) ( 7,377)
Cash and cash equivalents
beginning of period 8,475 130,289
Cash and cash equivalents end of period $ 2,607 $122,912
See Notes to Condensed Consolidated Financial Information.
</TABLE>
(1) Significant Accounting Policies
Consolidation Policy
The financial statements include, on a consolidated basis, the accounts
of Katy Industries, Inc. and subsidiaries (Katy) in which it has greater
than 50% interest.
The information furnished reflects all known adjustments which are, in
the opinion of management, necessary for a fair presentation. Interim
figures are subject to year-end audit adjustments.
Inventories
The components of inventories are as follows:
March 31, December 31,
1995 1994
Raw materials $11,737 $11,304
Work in process 8,798 7,137
Finished goods 25,368 12,871
$45,903 $31,312
(2) Acquisitions:
Effective March 31, 1995 Katy purchased all of the outstanding shares of
common stock of GC Thorsen, Inc. (GCT), a leading value-added marketer and
distributor of electronic and electrical parts and accessories and nonpowered
handtools. The purchase price, including acquisition costs, was
approximately $24,000,000, of which $19,500,000 was financed through Katy's
bank line of credit. The acquisition has been accounted for under the
purchase method and the balance sheet of GCT as of March 31, 1995
has been included in Katy's Condensed Consolidated Balance Sheet. The
excess of the purchase price over the fair value of the net assets acquired
of approximately $4,200,000 will be amortized over 20 years.
(3) Investments in Unconsolidated Subsidiaries, at Equity
Katy's investments in unconsolidated subsidiaries are comprised of the
following:
March 31, December 31,
1995 1994
Syratech Corporation $39,570 $38,325
Bee Gee Holding
Company, Inc. 6,954 6,985
$46,524 $45,310
<TABLE>
<CAPTION>
(3) Investments in Unconsolidated Subsidiaries, at Equity (Continued)
The condensed financial information which follows reflects Katy's
proportionate share in the financial position and results of operations of
all of its unconsolidated subsidiaries:
March 31, December 31,
1995 1994
(Thousands of Dollars)
<S> <C> <C>
Current assets $43,630 $40,475
Current liabilities ( 18,350) ( 16,196)
Working capital 25,280 24,278
Properties, net 28,281 27,590
Other assets 1,790 836
Long-term debt ( 6,124) ( 4,894)
Other liabilities ( 3,174) ( 3,086)
Stockholders' equity 46,053 44,724
Unamortized excess of cost
over net assets acquired 483 586
Investments in uncon-
solidated subsidiaries,
at equity $46,536 $45,310
Three Months
Ended March 31
1995 1994
(Thousands of Dollars)
Sales $ 25,355 $ 20,894
Costs and expenses ( 24,039) ( 19,575)
Net income 1,316 1,319
Amortization of excess
of cost over net
assets acquired ( 102) ( 204)
Provision for income taxes ( 514) ( 502)
Equity in income of
unconsolidated
subsidiaries $ 700 $ 613
</TABLE>
(3) Investments in Unconsolidated Subsidiaries, at Equity (Continued)
On March 27, 1994 Katy purchased 50% of the outstanding common stock of
C.E.G.F.(USA), which purchase results in Katy owning 95% of C.E.G.F. As of
March 31, 1994 the balance sheet of C.E.G.F. is included in Katy's
Condensed Consolidated Balance Sheet and beginning in the second quarter of
1994 the income statement of C.E.G.F. was included in Katy's Statement of
Condensed Consolidated Operations.
(4) Investments, at Cost
In April, 1994 management of Katy met with Katy's oil exploration joint
venture partners and, based on current facts and circumstances, Katy has
decided not to commit further funds to the oil exploration project and will
not participate in any further activities on the site. Accordingly, in
March, 1994 Katy wrote off its $6,580,000 investment.
LIQUIDITY AND CAPITAL RESOURCES
During the three months ended March 31, 1995 and 1994 working capital
decreased $5,406,000 and increased $5,406,000, respectively. Current ratios
were 1.58 to 1.00 at March 31, 1995 and 2.00 to 1.00 at December 31, 1994.
Katy has authorized and expects to commit an additional $5,580,000 for
capital projects during the remainder of 1995. Funding for these
expenditures is expected to be accomplished substantially through use of
internally generated funds from operations supplemented by short-term
borrowings.
Effective March 31, 1995 Katy purchased all of the outstanding shares of
common stock of GC Thorsen, Inc. (GCT), a leading value-added marketer and
distributor of electronic and electrical parts and accessories and
nonpowered handtools. The purchase price, including acquisition costs, was
approximately $24,000,000, of which $19,500,000 was financed through Katy's
bank line of credit. The acquisition has been accounted for under the
purchase method and the balance sheet of GCT as of March 31, 1995 has been
included in Katy's Condensed Consolidated Balance Sheet. The excess of
the purchase price over the fair value of the net assets acquired of
approximately $4,200,000 will be amortized over 20 years.
The Company and certain of its current and former direct and indirect
corporate predecessors, subsidiaries and divisions have been identified by
the U.S. Environmental Protection Agency and certain state environmental
agencies and private parties as potentially responsible parties ("PRPs") at
a number of hazardous waste disposal sites under the Comprehensive
Environmental Response, Compensation and Liability Act ("Superfund") and
equivalent state laws and, as such, may be liable for the cost of cleanup
and other remedial activities at these sites. Responsibility for cleanup and
other remedial activities at a Superfund site is typically shared among PRPs
based on an allocation formula. The means of determining allocation among
PRPs is generally set forth in a written agreement entered into by the PRPs
at a particular site. An allocation share assigned to a PRP is often based
on the PRP's volummetric contribution of waste to a site. Under the federal
Superfund statute, parties are held to be jointly and severally liable, thus
subjecting them to potential individual liability for the entire cost of
cleanup at the site. The Company is also involved in remedial response and
voluntary environmental cleanup at a number of other sites which are not
currently the subject of any legal proceedings under Superfund, including
certain of its current and formerly owned manufacturing facilities. Based
on its estimate of allocation of liability among PRPs, the probability that
other PRPs, many of whom are large, solvent, public companies, will fully
pay the costs apportioned to them, currently available information concerning
the scope of contamination, estimated remediation costs, estimated legal
fees and other factors, the Company has recorded and accrued for indicated
environmental liabilities in the aggregate amount of approximately $7,200,000.
The Company expects this amount to be substantially paid over the next one
to four years.
Although management believes that these actions individually and in the
aggregate are not likely to have a material adverse effect on Katy, further
costs could be significant and will be recorded as a charge to operations
when such costs become probable and reasonably estimable.
Katy also has a number of product liability and workers' compensation claims
pending against it and its subsidiaries. Many of these claims are proceeding
through the litigation process and the final outcome will not be known until
a settlement is reached with the claimant or the case is adjudicated. It
can take up to 6-10 years from the date of the injury to reach a final
outcome for such claims. With respect to the product liability and workers'
compensation claims, Katy hasprovided for its share of expected losses beyond
the applicable insurance coverage, including
LIQUIDITY AND CAPITAL RESOURCES (Continued)
those incurred but not reported. Such accruals are developed using
currently available claim information. Such accruals, however, are
management's best estimate and the ultimate cost of any individual claim can
vary based upon, among other factors, the nature of the injury, the
duration of the disability period, the length of the claim period, the
jurisdiction of the claim and the nature of the final outcome. The incurred
but not reported component of the liability was developed using actuarial
techniques.
On January 13, 1995, the Board of Directors adopted a Stockholder Rights
Plan in which Common Stock Purchase Rights ("Rights") were distributed as a
dividend at the rate of one Right for each share of Common Stock held as of
the close of business on January 24, 1995.
The Rights were designed to guard against (i) coercive and abusive tactics
that might be used in an attempt to gain control of the Company without
paying all stockholders a fair price for their shares, or (ii) the
accumulation of a substantial block of stock without Board approval.
The Rights Plan will not prevent takeovers, but was designed to deter
coercive and abusive takeover tactics and to encourage anyone attempting to
acquire the Company to first negotiate with the Board. Furthermore, the
Rights also permit the Board to have some input with respect to possible
future acquisitions of Company stock by the Carroll family and certain
investment funds managed by Mario J. Gabelli.
As of January 13, 1995 the Carroll family beneficially owned approximately
47% and the Gabelli group beneficially owned approximately 21% of the
Company's Common Stock. As of May 15, 1995, the ownership of the Carroll
family has not changed; the Gabelli group owns 21.82%
Such Rights only become exercisable, or transferable apart from the Common
Stock, ten business days after a person or group (an "Acquiring Person")
acquires beneficial ownership of, or commences a tender or exchange offer
for, 10% or more of the Company's Common Stock. Any additional acquisition
of shares by the Carroll family or the Gabelli group which would increase
their beneficial ownership in the Company's Common Stock by more than 1%
above their holdings at January 13, 1995, respectively, will also make the
Rights exercisable.
Once exercisable, each Right not owned by an Acquiring Person, or if the
Carroll family or the Gabelli group acquires additional shares then that
family or group allows the Rightholder to acquire one share of the Company's
Common Stock at an exercise price of $35, subject to adjustment. Thereafter,
upon the occurrence of certain events (for example, if the Company is the
surviving corporation of a merger with an Acquiring Person), the Rights
entitle holders other than the Acquiring Person to acquire Common Stock
having a value of twice the exercise price of the Right. Alternatively,
upon the occurrence of certain other events (for example, if the Company is
acquired in a merger or other business combination transaction in which the
Company is not the surviving corporation), the Rights would entitle holders
other than the Acquiring Person to acquire Common Stock of the Acquiring
Person having a value twice the exercise price of the Rights.
The Rights may be redeemed by the Company at a redemption price of
$.01 per Right at any time until the tenth business day following public
announcement that a 10% position has been acquired (or an additional 1% if
by the Carroll family or Gabelli group) or ten business days after
commencement of a tender or exchange offer. The Rights will expire on
January 24, 2005.
LIQUIDITY AND CAPITAL RESOURCES (Continued)
By its terms, the Rights Plan reserves for the Board of Directors the right to
amend the Plan and redeem the Rights. All the terms of the Plan,
including but not limited to the exercise price of the Rights and the
ownership percentages leading to a triggering event, may be amended by the
Board of Directors of the Company at any time prior to the triggering of
the Rights Plan's "flip-over" and "flip-in" provisions.
At March 31, 1995 Katy had short and long-term indebtedness for money
borrowed of $42,685,000 of which $6,716,000 represented short-term bank
credit lines from banks in Germany in support of Katy's 75% owned German
subsidiary (Schoen) and $19,500,000 represented short-term borrowings under
Katy's domestic bank line of credit, which borrowings were used for the
acquisition of GC Thorsen, Inc.. In addition, Schoen and its subsidiaries
had long-term indebtedness of $5,480,000, of which $1,122,000 was current,
which is also included in the total shown above. Total debt was 27.7% of
total debt and equity at March 31, 1995. Katy has a line of credit with
The Northern Trust Company, which was increased to an aggregate principal
amount of $30,000,000 during the quarter ended March 31, 1995. The line
of credit may be used for letters of credit, working capital and/or
acquisitions. Katy has no guarantees outstanding on any debt of Schoen or
its subsidiaries.
During the first quarter of 1995, Schoen and its subsidiaries continued
to incur substantial losses from operations. In 1992, management began a
restructuring of Schoen. To date, this has resulted in substantial costs
for the termination of employees and the curtailment of manufacturing
activities. During 1993, this subsidiary entered into an accumulated
deficit position and remained there during 1994 and, accordingly, Katy is
required to absorb 100% of current operating losses. Such losses
are being funded through short-term lines of credit in Germany. During 1994,
Katy funded its previous commitments and guarantees in the aggregate
amount of approximately $6,000,000 and provided an additional $300,000
loan to this subsidiary for working capital. In addition, Schoen received
approval from its banks for approximately $3,900,000 of new debt to provide
for working capital needs. It is intended that funds generated from
operations of this subsidiary, along with available bank credit agreements,
will fund future operations and that no further investment from the United
States will be made. However, Schoen is continuing to realize losses from
operations and no assurances can be given as to the ability of Schoen to
finance its operations independently. Sales volume and order backlog remain
inadequate and management continues to evaluate its options with regard to
Schoen. Katy does not anticipate providing any additional funding for
Schoen or any of it's subsidiaries.
Management continuously reviews each of its businesses. As a result of
these ongoing reviews, management may determine to sell certain companies
and may augment its remaining businesses with acquisitions. When sales do
occur, management anticipates that funds from these sales will be used for
general corporate purposes or to fund acquisitions. Acquisitions may also
be funded through cash balances, available lines of credit and future
borrowings.
<TABLE>
<CAPTION>
RESULTS OF OPERATIONS
Three Months Ended March 31, 1995
Following is a summary of sales and operating income for the three months ended
March 31, 1995 and 1994 by industry segment:
Three Months Ended
March 31 Increase (Decrease)
1995 1994 Amount Per Cent
(Thousands of Dollars)
<S> <C> <C> <C> <C>
Industrial Machinery $ 13,737 $ 15,581 ($ 1,844) (11.8%)
Industrial Components 6,978 7,634 ( 656) ( 8.6 )
Consumer Products 17,643 15,208 2,435 16.0
Total sales $ 38,358 $ 38,423 ($ 65) ( .2%)
Operating Income
Percent of Sales
1995 1994 1995 1994
(Thousands of Dollars)
Industrial Machinery ($ 1,387) ($ 197) ( 10.1%) ( 1.3%)
Industrial Components 916 505 13.1 6.6
Consumer Products 2,017 1,751 11.4 11.5
Total operating income $ 1,546 $ 2,059 4.0% 5.4%
</TABLE>
RESULTS OF OPERATIONS (Continued)
Three Months Ended March 31, 1995
Sales were essentially even with 1994, down by only $65,000. Sales by
foreign subsidiaries were $7,601,000, down $1,450,000, or 16.0% from
$9,051,000 in 1994. Foreign sales, as a percentage of total sales, was
19.8% compared to 23.6% in 1994.
Operating income decreased $513,000, or 24.9% from $2,059,000 in 1994 to
$1,546,000 in 1995. This decrease is attributable to losses generated by
the 75% owned Schoen & Cie, AG group. Exclusive of the losses from the
Schoen group, Katy's remaining operations recorded operating income of
$3,090,000 in 1995 compared to $2,741,000 in 1994, an increase of $349,000
or 12.7%.
Industrial Machinery Group sales were lower by 11.8%. Sales increases
at most operating units were more than offset by a 22.2% decrease in sales
of the Schoen group which again in 1995 experienced a further decline in
sales of shoe-making machinery reflecting the continuing economic
uncertainty in Eastern Europe and Russia, its principal markets. Exclusive
of the sales and losses generated by the Schoen group, the remaining
operations in the Industrial Machinery Group reported sales of $6,681,000
in 1995 compared to $6,466,000 in 1994, an increase of $215,000 and operating
income of $157,000 in 1995 compared to $484,000 in 1994, with all business
reporting decreased operating income due to lower operating margins.
The Schoen group has been in an accumulated deficit position since
1993, and Katy has accordingly been required to report 100% of Schoen's
operating losses in Katy's results. During 1994 Katy funded its previous
commitments and guarantees and wrote off or reserved all remaining
investments in Schoen. Katy therefore has no material financial or
investment exposure to the Schoen group. Nonetheless, Katy is required to
record the Schoen group's losses in its financial statements until such time
as it ceases to hold a majority ownership position.
The Industrial Components Group reported increased operating income on
lower sales. Increased sales were reported by all group companies. These
increases were more than offset by the loss of sales of companies sold in
1994. The Group realized improvement in operating income from all businesses.
The Consumer Products Group reported increased sales and operating income
primarily as a result of improved sales and margins from the manufacturer of
paints and stains and the exclusion in 1994 of three months of operations
from C.E.G.F. (USA), which Katy now includes in its consolidated operations.
For additional information on C.E.G.F. see Note 3 of Notes to Condensed
Consolidated Financial Information. These increases were partially offset
by lower sales and lower operating margins of the filter business.
Although sales levels were essentially even with 1994 selling, general and
administrative expenses increased $1,091,000 or 11.1%, primarily the result
of higher sales commission expenses due to a change in product mix from
noncommission sales to commission sales.
RESULTS OF OPERATIONS (Continued)
Interest expense decreased by $102,000 on slightly higher average
borrowings as a result of lower interest rates. Interest income has
decreased by $949,000 due primarily to the payment of the special dividend
in August, 1994 which significantly reduced the Company's interest earning
cash and cash equivalents balances.
The provision for income taxes of $628,000 increased $2,492,000 from the
benefit for income taxes of $1,864,000 in 1994, the result of higher taxable
domestic income. The losses generated by Katy's German subsidiary continue
to be ineligible for tax benefits.
Equity in income of unconsolidated subsidiaries increased by $87,000, or
14%. Syratech Corporation's higher earnings in 1995 were partially offset by
lower earnings of Bee Gee Holding Company and the exclusion of C.E.G.F.'s
(USA) earnings. Katy acquired a 50% interest in C.E.G.F. (USA) on
March 27, 1994 and their subsequent earnings are included in Katy's Statement
of Condensed Consolidated Operations. For additional information on
unconsolidated subsidiaries see Note 3 of Notes to Condensed Consolidated
Financial Information.
KATY INDUSTRIES, INC.
PART II - OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
(a) Notice of Claim - Medford Oregon. Cost estimates for the
clean-up required by the Oregon Department of Environmental
Quality in this matter, referred to in Katy's Form 10-K for
the year ended December 31, 1994, currently range between
$2,000,000 and $3,000,000. Katy and Balteau Standard, Inc.
have recently agreed to share such costs. Pursuant to such
agreement, Katy will be responsible for 65% of the first
$2,000,000 of such costs and 50% of such costs to the extent
that they exceed $2,450,000.
Item 6. Exhibits and Reports on Form 8-K
(a) Reports on Form 8-K No reports on Form 8-K were filed during the
quarter for which this report is filed.
Signatures
Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
KATY INDUSTRIES, INC.
Registrant
DATE: May 15, 1995 By /s/John R. Prann, Jr.
John R. Prann, Jr.
President, Chief Executive Officer
and Chief Operating Officer
DATE: May 15, 1995 By /s/P. Kurowski
P. Kurowski
Treasurer
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> 2,607
<SECURITIES> 27,812
<RECEIVABLES> 35,867
<ALLOWANCES> 4,447
<INVENTORY> 45,903
<CURRENT-ASSETS> 121,152
<PP&E> 95,285
<DEPRECIATION> 48,608
<TOTAL-ASSETS> 238,572
<CURRENT-LIABILITIES> 76,715
<BONDS> 13,568
<COMMON> 9,821
0
0
<OTHER-SE> 101,673
<TOTAL-LIABILITY-AND-EQUITY> 238,572
<SALES> 38,358
<TOTAL-REVENUES> 38,358
<CGS> 26,456
<TOTAL-COSTS> 38,788
<OTHER-EXPENSES> (39)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 418
<INCOME-PRETAX> (809)
<INCOME-TAX> 628
<INCOME-CONTINUING> (1,437)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 700
<NET-INCOME> (737)
<EPS-PRIMARY> (.08)
<EPS-DILUTED> (.08)
</TABLE>
