<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
FOR ANNUAL REPORTS OF EMPLOYEE STOCK PURCHASE SAVINGS
AND SIMILAR PLANS PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
(Mark One)
(X) ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (FEE REQUIRED)
For the fiscal year ended December 31, 1995.
-----------------
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the transition period from ________ to ________.
Commission File Number 1-5492-1
--------
A. Full title of the plan and the address of the plan, if
different from that of the issuer named below:
Nashua Corporation Employees' Savings Plan
B. Name of issuer of the securities held pursuant to the plan and
the address of its principal executive office:
Nashua Corporation
44 Franklin Street
Nashua, New Hampshire 03060
<PAGE> 2
NASHUA CORPORATION
- ------------------
EMPLOYEES' SAVINGS PLAN
- -----------------------
FINANCIAL STATEMENTS
- --------------------
DECEMBER 31, 1995 AND 1994
- --------------------------
<PAGE> 3
NASHUA CORPORATION
------------------
EMPLOYEES' SAVINGS PLAN
-----------------------
INDEX TO FINANCIAL STATEMENTS
-----------------------------
PAGES
-----
Financial Statements:
Report of Independent Accountants 1-2
Statement of Net Assets Available for Plan Benefits
(with Fund Information) as of December 31, 1995 and 1994 3-4
Statement of Changes in Net Assets Available for
Plan Benefits (with Fund Information)
for the Year Ended December 31, 1995 and 1994 5-6
Notes to Financial Statements 7-11
Supplementary Information: *
* Schedules required by Section 2520.103-10 of the Department of Labor's
Rules and Regulations for Reporting and Disclosure under ERISA have been
omitted because they are not applicable.
<PAGE> 4
160 Federal Street Telephone 617 439-4390
Boston, MA 02110
Price Waterhouse LLP
REPORT OF INDEPENDENT ACCOUNTANTS
June 25, 1996
To the Participants and Administrator
of the Nashua Corporation Employees'
Savings Plan
In our opinion, the accompanying statements of net assets available for plan
benefits and the related statements of changes in net assets available for
plan benefits present fairly, in all material respects, the net assets
available for plan benefits of the Nashua Corporation Employees' Savings Plan
(the "Plan") at December 31, 1995 and 1994, and the changes in net assets
available for plan benefits for the years then ended, in conformity with
generally accepted accounting principles. These financial statements are the
responsibility of the Plan's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these statements in accordance with generally accepted auditing
standards which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for the opinion expressed above.
-1-
<PAGE> 5
To the Participants and Administrator
of the Nashua Corporation Employee's Savings Plan
Page 2
June 25, 1996
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The Fund Information in the statements
of net assets available for plan benefits and the statements of changes in net
assets available for plan benefits is presented for purposes of additional
analysis rather than to present the net assets available for plan benefits and
changes in net assets available for plan benefits of each fund. The Fund
Information has been subjected to the auditing procedures applied in the audits
of the basic financial statements and, in our opinion, is fairly stated in all
material respects in relation to the basic financial statements taken as a
whole.
/s/ Price Waterhouse LLP
- ------------------------
-2-
<PAGE> 6
NASHUA CORPORATION
EMPLOYEES' SAVINGS PLAN
<TABLE>
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS (WITH FUND INFORMATION)
DECEMBER 31, 1995
<CAPTION>
Guaranteed Nashua
Investment Common Equity- Growth
Contract Stock Puritan Magellan Income Company
Fund Fund Fund Fund Contrafund Fund Fund
---- ---- ---- ---- ---------- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Assets:
Guaranteed Investment Contracts,
at Contract Value $ 9,334,884 $ -- $ -- $ -- $ -- $ -- $ --
Investments at Fair Value:
Nashua Common Stock Fund -- 3,985,978 -- -- -- -- --
Mutual Funds -- -- 5,975,783 14,947,653 631,425 3,426,955 4,263,377
Collective Investment Fund 10,188,914 -- -- -- -- -- --
Cash 529,740 -- -- -- -- -- --
Employee Contributions Receivable 100,680 4,349 32,877 89,745 5,639 19,495 26,827
Employer Contributions Receivable 9,634 52,822 6,709 19,301 1,661 3,915 6,840
Participant Loan Receivable, at Fair Value -- -- -- -- -- -- --
------------------------------------------------------------------------------------
Net Assets Available for Plan Benefits $20,163,662 $4,043,149 $6,015,369 $15,056,699 $638,725 $3,450,365 $4,297,044
====================================================================================
Asset Pacific Intermediate Small Cap Gov't Money U.S. Equity
Manager Europe Basin Bond Stock Market Index
Fund Fund Fund Fund Fund Fund Fund
---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Assets:
Guaranteed Investment Contracts,
at Contract Value $ -- $ -- $ -- $ -- $ -- $ -- $ --
Investments at Fair Value:
Nashua Common Stock Fund -- -- -- -- -- -- --
Mutual Funds 856,355 763,616 847,247 111,809 375,688 913,529 273,290
Collective Investment Fund -- -- -- -- -- -- --
Cash -- -- -- -- -- -- --
Employee Contributions Receivable 6,018 5,179 7,257 2,113 3,567 6,305 1,548
Employer Contributions Receivable 1,521 1,737 1,881 740 1,131 1,685 515
Participant Loan Receivable, at Fair Value -- -- -- -- -- -- --
-------------------------------------------------------------------------------
Net Assets Available for Plan Benefits $863,894 $770,532 $856,385 $114,662 $380,386 $921,519 $275,353
===============================================================================
<CAPTION>
Loan
Fund Total
---- -----
<S> <C> <C>
Assets:
Guaranteed Investment Contracts,
at Contract Value $ -- $ 9,334,864
Investments at Fair Value:
Nashua Common Stock Fund -- 3,985,978
Mutual Funds -- 33,386,727
Collective Investment Fund -- 10,188,714
Cash -- 529,770
Employee Contributions Receivable -- 311,599
Employer Contributions Receivable -- 110,092
Participant Loan Receivable, at Fair Value 2,605,851 2,605,851
-------------------------
Net Assets Available for Plan Benefits $2,605,851 $60,453,595
=========================
</TABLE>
See accompanying notes to financial statements.
-3-
<PAGE> 7
NASHUA CORPORATION
<TABLE>
EMPLOYEES' SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS (WITH FUND INFORMATION)
DECEMBER 31, 1994
Guaranteed Nashua
Investment Common
Contract Stock Puritan Magellan
Fund Fund Fund Fund
---- ---- ---- ----
<S> <C> <C> <C> <C>
Assets:
Guaranteed Investment Contracts,
at Contract Value $21,470,787 $ -- $ -- $ --
Investments at Fair Value:
Nashua Common Stock Fund -- 5,486,006 -- --
Mutual Funds -- -- 4,373,943 9,961,536
Employee Contributions Receivable 142,951 5,046 42,219 98,481
Employer Contributions Receivable 10,603 79,958 7,862 16,152
Participant Loans Receivable, at
Fair Value -- -- -- --
--------------------------------------------------------------------
Net Assets Available for Plan Benefits $21,624,341 $5,571,010 $4,424,024 $10,076,169
====================================================================
<CAPTION>
Equity Growth Asset
Income Company Manager Europe
Fund Fund Fund Fund
---- ---- ---- ----
<S> <C> <C> <C> <C>
Assets:
Guaranteed Investment Contracts,
at Contract Value $ -- $ -- $ -- $ --
Investments at Fair Value:
Nashua Common Stock Fund -- -- -- --
Mutual Funds 2,196,982 2,497,119 667,490 599,123
Employee Contributions Receivable 21,787 31,239 8,875 5,952
Employer Contributions Receivable 3,410 6,701 2,153 2,048
Participant Loans Receivable, at
Fair Value -- -- -- --
----------------------------------------------------------------
Net Assets Available for Plan Benefits $2,222,179 $2,535,059 $678,518 $607,123
================================================================
<CAPTION>
Pacific Intermediate Gov't Money
Basin Bond Market Loan
Fund Fund Fund Fund Total
---- ---- ---- ---- -----
<S> <C> <C> <C> <C> <C>
Assets:
Guaranteed Investment Contracts,
at Contract Value $ -- $ -- $ -- $ -- $21,470,787
Investments at Fair Value:
Nashua Common Stock Fund -- -- -- -- 5,486,006
Mutual Funds 1,075,135 58,952 1,440,948 -- 22,871,228
Employee Contributions Receivable 11,882 1,557 10,445 -- 380,434
Employer Contributions Receivable 3,192 518 1,940 -- 134,537
Participant Loans Receivable, at
Fair Value -- -- -- 2,170,276 2,170,276
-----------------------------------------------------------------------------------
Net Assets Available for Plan Benefits $1,090,209 $61,027 $1,453,333 $2,170,276 $52,513,268
===================================================================================
</TABLE>
See accompanying notes to financial statements.
-4-
<PAGE> 8
<TABLE>
NASHUA CORPORATION
EMPLOYEES' SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS (WITH FUND INFORMATION)
YEAR ENDED DECEMBER 31, 1995
<CAPTION>
Guaranteed Nashua
Investment Common Equity- Growth Asset
Contract Stock Puritan Magellan Income Company Manager
Fund Fund Fund Fund Contrafund Fund Fund Fund
--------- ------ ------- -------- ---------- ------ ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Sources of Net Assets:
Employee Contributions $ 1,492,410 $ 57,188 $ 472,545 $ 1,171,421 $ 51,839 $ 261,841 $ 395,285 $ 98,690
Employer Contributions 126,481 798,190 98,862 214,818 10,119 49,592 84,834 22,706
Investment Income 1,016,170 -- 303,800 864,095 48,284 188,657 195,160 24,551
Net Appreciation of Investments -- -- 696,417 2,913,261 18,542 555,040 896,167 111,946
Loan Repayments 260,658 2,949 61,644 218,688 6,334 38,866 60,100 6,880
Loan Interest 64,524 1,676 19,002 55,958 480 9,884 15,287 1,554
---------------------------------------------------------------------------------------------
2,960,243 860,003 1,652,270 5,438,241 135,598 1,103,880 1,646,833 266,327
---------------------------------------------------------------------------------------------
Applications of Net Assets:
Plan Withdrawals 2,180,283 296,123 299,922 665,065 3,290 126,491 164,238 12,758
Net Depreciation of Investments 53,459 1,699,096 -- -- -- -- -- --
Loan Withdrawals 513,010 23,915 123,744 412,954 12,796 67,453 120,794 5,336
Administrative Expenses 19,786 684 2,150 2,498 8 869 973 396
---------------------------------------------------------------------------------------------
2,766,538 2,019,818 425,816 1,080,517 16,094 194,813 286,005 18,490
---------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
During the Year 193,705 (1,159,815) 1,226,454 4,357,724 119,504 909,067 1,360,828 247,837
Net Transfers Between Funds (1,654,384) (368,046) 364,891 622,806 519,221 319,119 401,157 (62,461)
Net Assets Available for Plan Benefits:
Beginning of Year 21,624,341 5,571,010 4,424,024 10,076,169 -- 2,222,179 2,535,059 678,518
---------------------------------------------------------------------------------------------
End of Year $20,163,662 $ 4,043,149 $6,015,369 $15,056,699 $638,725 $3,450,365 $4,297,044 $863,894
=============================================================================================
</TABLE>
<TABLE>
<CAPTION>
Pacific Intermediate Small Cap Gov't Money U.S. Equity
Europe Basin Bond Stock Market Index Loan
Fund Fund Fund Fund Fund Fund Fund Total
------ ------ ----------- -------- ---------- ---------- ---- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Sources of Net Assets:
Employee Contributions $ 69,764 $ 141,834 $ 29,461 $ 33,140 $ 92,253 $ 18,105 $ -- $ 4,385,776
Employer Contributions 26,594 32,046 6,982 7,858 27,586 6,074 -- 1,512,742
Investment Income 29,552 -- 4,351 22,150 53,897 4,671 -- 2,755,338
Net Appreciation of Investments 89,597 -- 3,826 -- -- 31,675 -- 5,316,471
Loan Repayments 9,923 8,505 396 1,712 11,881 353 (688,889) --
Loan Interest 2,896 2,298 74 371 2,752 49 -- 176,805
--------------------------------------------------------------------------------------------
228,326 184,683 45,090 65,231 188,369 60,927 (688,889) 14,147,132
--------------------------------------------------------------------------------------------
Applications of Net Assets:
Plan Withdrawals 49,522 42,191 38,446 -- 248,296 269 209,936 4,336,830
Net Depreciation of Investments -- 70,150 -- 18,038 -- -- -- 1,840,743
Loan Withdrawals 18,158 18,359 3,730 2,144 10,374 1,633 (1,334,400) --
Administrative Expenses 106 176 75 10 1,462 39 -- 29,232
--------------------------------------------------------------------------------------------
67,786 130,876 42,251 20,192 260,132 1,941 (1,124,464) 6,206,805
--------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
During the Year 160,540 53,807 2,839 45,039 (71,763) 58,986 435,575 7,940,327
Net Transfers Between Funds 2,869 (287,631) 50,796 335,347 (460,051) 216,367 -- --
Net Assets Available for Plan Benefits:
Beginning of Year 607,123 1,090,209 61,027 -- 1,453,333 -- 2,170,276 52,513,268
--------------------------------------------------------------------------------------------
End of Year $770,532 $ 856,385 $114,662 $380,386 $ 921,519 $275,353 $ 2,605,851 $60,453,595
============================================================================================
</TABLE>
See accompanying notes to financial statements
-5-
<PAGE> 9
<TABLE>
NASHUA CORPORATION
EMPLOYEES' SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS (WITH FUND INFORMATION)
YEAR ENDED DECEMBER 31, 1994
<CAPTION>
Guaranteed Nashua
Investment Common Equity- Growth Asset
Contract Stock Puritan Magellan Income Company Manager
Fund Fund Fund Fund Fund Fund Fund
--------- ----- ------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Sources of Net Assets:
Employee Contributions $ 1,983,714 $ 57,707 $ 490,666 $ 1,341,030 $ 285,904 $ 412,333 $237,350
Employer Contributions 135,294 1,067,079 95,157 205,334 44,432 88,843 31,005
Investment Income 1,345,675 -- 329,088 389,252 210,099 101,994 25,004
Net Appreciation of Investments -- -- -- -- -- -- --
Loan Repayments 293,541 2,159 43,521 150,901 25,588 29,968 8,429
Loan Interest 60,954 1,380 14,122 41,648 7,883 8,960 2,132
----------------------------------------------------------------------------------
3,819,178 1,128,325 972,554 2,128,165 573,906 642,098 303,920
----------------------------------------------------------------------------------
Applications of Net Assets:
Plan Withdrawals 2,443,755 485,546 648,977 672,290 207,215 208,990 150,464
Net Depreciation of Investments -- 1,487,383 268,576 606,368 203,629 158,788 74,210
Loan Withdrawals 760,391 6,708 121,366 392,440 70,181 64,469 11,328
Administrative Expenses 7,097 3,782 755 2,720 492 470 132
Plan Transfer (Note 6) 451,069 182,085 204,107 605,623 127,282 172,213 19,160
----------------------------------------------------------------------------------
3,662,312 2,165,504 1,243,781 2,279,441 608,799 604,930 255,294
----------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
During the Year 156,866 (1,037,179) (271,227) (151,276) (34,893) 37,168 48,626
Net Transfers Between Funds (1,848,895) (691,128) 674,622 169,784 109,450 (32,813) 13,285
Net Assets Available for Plan Benefits:
Beginning of Year 23,316,370 7,299,317 4,020,629 10,057,661 2,147,622 2,530,704 616,607
----------------------------------------------------------------------------------
End of Year $21,624,341 $ 5,571,010 $ 4,424,024 $10,076,169 $2,222,179 $2,535,059 $678,518
==================================================================================
</TABLE>
<TABLE>
<CAPTION>
Pacific Intermediate Gov't Money
Europe Basin Bond Market Loan
Fund Fund Fund Fund Fund Total
------ ------ ----------- ---------- ---- -----
<S> <C> <C> <C> <C> <C> <C>
Sources of Net Assets:
Employee Contributions $ 78,035 $ 135,910 $10,812 $ 93,865 $ -- $ 5,127,326
Employer Contributions 21,002 34,543 3,353 19,198 -- 1,745,240
Investment Income 8,020 117,974 2,037 40,082 -- 2,569,225
Net Appreciation of Investments 12,194 -- -- -- -- 12,194
Loan Repayments 7,123 7,059 1,820 4,573 (574,682) --
Loan Interest 2,086 1,708 12 688 -- 141,573
-----------------------------------------------------------------------------
128,460 297,194 18,034 158,406 (574,682) 9,595,558
-----------------------------------------------------------------------------
Applications of Net Assets:
Plan Withdrawals 10,244 27,040 1,884 38,188 108,312 5,002,905
Net Depreciation of Investments -- 172,032 2,409 -- -- 2,973,395
Loan Withdrawals 13,498 23,818 -- 10,301 (1,474,500) --
Administrative Expenses 116 127 10 140 -- 15,841
Plan Transfer (Note 6) 25,599 59,892 1,027 (14,289) 185,143 2,018,911
-----------------------------------------------------------------------------
49,457 282,909 5,330 34,340 (1,181,045) 10,011,052
-----------------------------------------------------------------------------
Increase (Decrease) in Net Assets
During the Year 79,003 14,285 12,704 124,066 606,363 (415,494)
Net Transfers Between Funds 204,108 265,196 20,458 1,115,933 -- --
Net Assets Available for Plan Benefits:
Beginning of Year 324,012 810,728 27,865 213,334 1,563,913 52,928,762
----------------------------------------------------------------------------
End of Year $607,123 $1,090,209 $61,027 $1,453,333 $ 2,170,276 $52,513,268
=============================================================================
</TABLE>
See accompanying notes to financial statements
-6-
<PAGE> 10
NASHUA CORPORATION
------------------
EMPLOYEES' SAVINGS PLAN
-----------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
- ---------------------------------------------------
Basis of Accounting
- -------------------
The financial statements of the Nashua Corporation Employees' Savings Plan ("the
Plan") are presented on the accrual basis of accounting.
Asset Maintenance
- -----------------
Fidelity Management Trust Company is the Plan trustee ("the Trustee"). Assets of
the Plan are invested, at the election of the participants, in up to twelve
Fidelity Investments' mutual funds (Fidelity Magellan Fund, Fidelity Puritan
Fund, Fidelity Equity-Income Fund, Fidelity Growth Company Fund, Fidelity
Pacific Basin Fund, Fidelity Europe Fund, Fidelity Asset Manager Fund, Fidelity
Intermediate Bond Fund, Fidelity Small Cap Stock Fund, Fidelity Contrafund,
Fidelity U.S. Equity Index Fund, or Fidelity Retirement Government Money Market
Fund), a Guaranteed Investment Contract Fund managed by the Trustee, or the
Nashua Common Stock Fund. The Fidelity Small Cap Stock Fund, Fidelity Contrafund
and Fidelity U.S. Equity Index Fund were new investment options in 1995.
The Plan's assets are commingled with assets of the Nashua Corporation Savings
Plan for Specified Hourly Employees in a participant-directed master trust
arrangement. The Plan's participation in the net assets of the master trust is
recorded based on individual Plan participants' account balances. Investment
income and expenses for each investment option are allocated to the individual
participant account balances based on the prorata beginning account balances
less withdrawals and loans made to participants.
Investment Valuation
- --------------------
Common shares of Nashua Corporation ("the Company") held in the Plan are valued
at closing sales prices supplied by a pricing service. The Plan's guaranteed
investment contracts are valued at contract value which approximates fair value.
Contract value represents contributions made under the contracts, plus interest
earned, less funds used to pay withdrawals and expenses. The Plan's mutual fund
and collective investment fund accounts are valued at the respective funds'
closing net asset values. Investment transactions are recorded on the trade
date. Participant loans are valued at cost plus accrued interest which
approximates fair value. Cost is determined on an average cost basis.
Contributions
- -------------
The Plan has certain established criteria for eligibility. All contributions are
immediately 100% vested.
401(k) Plan contributions - Employees may make a basic contribution of up to 15%
of their earnings to the Plan. The Company contributes an amount equal to 50% of
up to 6% of the employees' contributed earnings. Contributions are subject to
certain limitations. Employees can direct their contributions and the Company
matching contribution into any of the investment funds available for their
contributions. Employees' contributions into the Nashua Common Stock Fund are
limited to 25% of their account balance.
Voluntary Plan contributions - Employees may elect to contribute from 1% to 10%
of their annual earnings to the Plan on an after-tax basis.
-7-
<PAGE> 11
Withdrawals and Loans
- ---------------------
Plan participants may withdraw part or all of their account balances subject to
certain restrictions stipulated by current Internal Revenue Service regulations.
The Plan also provides for optional forms of withdrawal at the time of
retirement. Plan participants may borrow against individual Plan balances
subject to Plan and current Internal Revenue Service regulations. Interest on
the loans is payable at 2% above the prime rate. Loans are payable within 5
years from the date of withdrawal unless the amount was withdrawn to purchase a
primary residence, in which case the term of the loan is 20 years. At December
31, 1995 and 1994, there were 705 and 598 loans outstanding totalling 2,605,851
and $2,170,276, respectively.
Expenses
- --------
Trustee administrative fees, audit and other expenses are paid directly by the
Company and, accordingly, such items are not reflected in the financial
statements of the Plan. Fees for participant loans are paid by the Plan and are
reflected in the accompanying financial statements as administrative expenses.
Use of Estimates
- ----------------
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates.
Investment Income
- -----------------
Income from investments is recorded as earned on an accrual basis.
Federal Income Tax Status
- -------------------------
The Company was advised by the U.S. Treasury Department in October 25, 1994 that
the Plan is qualified under Section 401 of the Internal Revenue Code ("the
Code") and is therefore exempt from federal income taxes. The Plan has
subsequently been amended. A new determination letter has not yet been
requested. Management believes that the Plan, as amended, and its operations,
have been and continue to be in accordance with all applicable provisions of the
Code and the Employee Retirement Income Security Act of 1974 ("ERISA").
NOTE 2 - GENERAL DESCRIPTION OF THE PLAN
- ----------------------------------------
The following brief description of the Plan is provided for general information
purposes only. Participants should refer to the Plan agreement for more complete
information.
1. GENERAL - The Plan is a defined contribution plan covering all eligible
employees. It is subject to the provisions of ERISA.
2. TERMINATION - The Plan is administered by the Nashua Pension Committee,
which is composed of officers of the Company. The Company anticipates and
believes that the Plan will continue without interruption, but reserves the
right to discontinue the Plan. In the event that such discontinuance
results in the termination of the Plan, the Plan provides that net assets
shall be allocated among the participants.
-8-
<PAGE> 12
NOTE 3 - INVESTMENTS
- --------------------
<TABLE>
The Plan's investments, excluding the Guaranteed Investment Contract Fund, are
summarized as follows:
<CAPTION>
December 31,
------------------------------------
1995 1994
----------- -----------
<S> <C> <C>
Nashua Common Stock Fund $ 3,985,978 $ 5,486,006
Fidelity Puritan Fund 5,975,783 4,373,943
Fidelity Magellan Fund 14,947,653 9,961,536
Fidelity Contrafund 631,425 --
Fidelity Equity-Income Fund 3,426,955 2,196,982
Fidelity Growth Company Fund 4,263,377 2,497,119
Fidelity Asset Manager Fund 856,355 667,490
Fidelity Europe Fund 763,616 599,123
Fidelity Pacific Basin Fund 847,247 1,075,135
Fidelity Intermediate Bond Fund 111,809 58,952
Fidelity Small Cap Stock Fund 375,688 --
Fidelity Retirement Government
Money Market Fund 913,529 1,440,948
Fidelity U.S. Equity Index Fund 273,290 --
----------- -----------
$37,372,705 $28,357,234
=========== ===========
</TABLE>
NOTE 4 - GUARANTEED INVESTMENT CONTRACT FUND
- --------------------------------------------
<TABLE>
The Plan's investment in the Guaranteed Investment Contract Fund consists of the
following:
<CAPTION>
December 31,
------------------------------------
1995 1994
----------- -----------
<S> <C> <C>
State Mutual Life Assurance Company
5.48% Due 1/1/98 - 1/3/99 $ 937,376 $ 2,102,350
Life of Virginia
8.32% Due 5/31/97 1,002,636 5,615,493
Aetna Life Insurance Company
6.78% Due 6/30/95 -- 992,627
Lincoln National Life Insurance Company
6.28% Due 12/31/96 1,457,493 2,250,872
Provident Life & Accident Insurance Company
6.14% Due 1/29/99 -- 2,263,667
Pacific Mutual Life Insurance Company
5.30% Due 3/30/99 - 6/30/99 947,515 2,001,629
People's Security Life
5.52% Due 2/28/00 1,458,182 2,101,735
People's Security Life
5.41% Due 2/28/00 525,739 700,578
Confederation Life Insurance Company
8.77% Due 1/3/95 3,005,923 3,005,923
Fidelity Institutional Money Market Fund -- 435,913
Fidelity Managed Income Portfolio II 10,188,714 --
Cash 529,770 --
----------- -----------
$20,053,348 $21,470,787
=========== ===========
</TABLE>
The issuing institutions ability to meet its contractual obligation under the
respective contracts may be affected by future economic and regulatory
developments in the insurance industry.
On August 12, 1994, Canadian regulators seized control of Confederation Life
Insurance Company. As a result, the value of the Plan's investment in that
carrier's contract has been frozen until regulators finalize a rehabilitation
plan. Interest accrual ceased on August 12, 1994. While the rehabilitation
proceedings are still pending, realization of the Plan's investment thereon
cannot be presently determined. Accordingly, no provision for any loss that may
result upon final resolution of these matters has been made in the accompanying
financial statements.
-9-
<PAGE> 13
NOTE 5 - SAVINGS PLANS MASTER TRUST
- -----------------------------------
<TABLE>
The assets of the Plan have been commingled with assets of another Company
savings plan in the Nashua Corporation Savings Plans Master Trust ("the Master
Trust"). The Plan administrator adjusted the financial data as confirmed on a
cash basis by the Trustee to the accrual basis on which the information shown
below is prepared. The effect of converting to the accrual basis was to record
accrued employer and employee contributions receivable. The Plan owned
approximately 99.8% of the Master Trust at December 31, 1995 and 1994.
<CAPTION>
December 31,
--------------------------------
1995 1994
------------ -----------
<S> <C> <C>
Statement of Net Assets
Available for Plan Benefits:
Guaranteed Investment Contracts, at
Contract Value $ 9,368,121 $21,533,934
Nashua Common Stock Fund,
at Fair Value 3,995,146 5,499,016
Mutual Funds, at Fair Value 33,446,659 22,912,974
Collective Investment Fund, at Fair Value 10,229,676 --
Cash 531,900 --
Employee Contributions Receivable 312,251 383,267
Employer Contributions Receivable 110,343 135,626
Participant Loans Receivable, at Fair Value 2,608,847 2,173,276
----------- -----------
Net Assets Available for Plan Benefits $60,602,943 $52,638,093
=========== ===========
December 31,
--------------------------------
1995 1994
------------ -----------
Statement of Changes in Net Assets
Available for Plan Benefits:
Sources of Net Assets:
Employee Contributions $ 4,406,498 $ 5,271,617
Employer Contributions 1,520,574 1,797,983
Investment Income 2,762,262 2,608,247
Net Appreciation of Investments 5,328,978 25,762
Loan Interest 176,825 145,301
------------ ------------
14,195,137 9,848,910
----------- ------------
Application of Net Assets:
Plan Withdrawals 4,355,061 5,037,619
Net Depreciation of Investment 1,845,582 2,979,570
Administrative Expenses 29,644 17,134
Plan Transfer -- 3,233,311
------------ ------------
6,230,287 11,267,634
------------ ------------
Increase (Decrease) in Net Assets During
the Year $ 7,964,850 $ (1,418,724)
============ =============
</TABLE>
The Master Trust purchased 36,300 and 55,800 common shares of Nashua Corporation
at a total cost of $617,519 and $1,414,510 during 1995 and 1994, respectively.
The Master Trust received $222,104 and $1,483,342 from the sale of 13,200 and
53,762 common shares of Nashua Corporation during 1995 and 1994, respectively.
-10-
<PAGE> 14
NOTE 6 - PLAN TRANSFER
- ----------------------
On May 25, 1994 the Company's Santa Clara facility was sold. The participants of
the Plan who were employees of the Santa Clara facility were transferred into a
plan established by the buyer. The transfer occurred during the third quarter of
1994 and resulted in a plan transfer of $2,018,911.
NOTE 7 - SUBSEQUENT EVENTS
- --------------------------
Nashua Corporation's Watervliet facility was sold and the Champaign facility was
spun off through an initial public offering on May 20 and May 24 of 1996,
respectively. At December 31, 1995 participants of the Watervliet and Champaign
facilities had assets of $7,689,843 and $991,260, respectively. As of the
respective sale dates, the participants have the option to take a distribution
from the Plan or rollover into another qualified plan.
NOTE 8 - IMPLEMENTATION OF STATEMENT OF POSITION 94-4
- -----------------------------------------------------
In September 1994, the American Institute of Certified Public Accountants
("AICPA") issued Statement of Position 94-4 "Reporting of Investment Contracts
Held by Health and Welfare Benefit Plans and Defined Contribution Pension Plans"
(the "SOP") which amends the AICPA Audit and Accounting Guide - Audits of
Employee Benefit Plans. The SOP is effective for financial statements for years
beginning after December 15, 1994, except that the application of the SOP to
investment contracts entered into before December 31, 1993, is delayed to years
beginning after December 15, 1995. The SOP will be implimented during the year
ended December 31, 1996 for the Plan. The SOP requires defined contribution
plans to report investment contracts with fully benefit-responsive features, as
defined in the SOP, at contract value and other investment contracts at fair
value. Management does not believe the implementation of the SOP will have a
material effect on the financial statements.
-11-
<PAGE> 15
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 of Nashua Corporation of our report dated June 25, 1996
relating to the financial statements of the Nashua Corporation Employees'
Savings Plan for the year ended December 31, 1995 included with this Form 11-K.
We also consent to the incorporation by reference in the Registration Statement
on Form S-8 of Nashua Corporation of our report dated June 25, 1996 relating to
the financial statements of the Nashua Corporation Employees' Savings Plan for
Specified Hourly Employees for the year ended December 31, 1995 included with
this Form 11-K.
/s/ Price Waterhouse LLP
- ----------------------------
PRICE WATERHOUSE LLP
Boston, Massachusetts
June 27, 1996
<PAGE> 16
SIGNATURE
NASHUA CORPORATION EMPLOYEES' SAVINGS PLAN. Pursuant to the requirements of the
Securities Act of 1934, the Plan Committee has duly caused this annual report
to be signed on its behalf by the undersigned thereunto duly authorized.
NASHUA CORPORATION EMPLOYEES'
SAVINGS PLAN
Date: June 28, 1996 By /s/ Paul Buffum
---------------------------------
Paul Buffum
Nashua Corporation Employees'
Savings Plan Committee
