<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
(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, 1996.
------------------
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, 1996 AND 1995
- --------------------------
<PAGE> 3
NASHUA CORPORATION
------------------
EMPLOYEES' SAVINGS PLAN
-----------------------
INDEX TO FINANCIAL STATEMENTS
-----------------------------
PAGES
Financial Statements:
Report of Independent Accountants 1
Statement of Net Assets Available for Plan Benefits
(with Fund Information) as of December 31, 1996 and 1995 2-3
Statement of Changes in Net Assets Available for
Plan Benefits (with Fund Information)
for the Year Ended December 31, 1996 and 1995 4-5
Notes to Financial Statements 6-10
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
[Price Waterhouse LLP letterhead]
REPORT OF INDEPENDENT ACCOUNTANTS
---------------------------------
June 18, 1997
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, 1996 and 1995, 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.
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 the 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
<PAGE> 5
NASHUA CORPORATION
EMPLOYEES' SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS (WITH FUND INFORMATION)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
Guaranteed Nashua
Investment Common Equity-
Contract Stock Puritan Magellan Income
Fund Fund Fund Fund Contrafund Fund
---- ---- ---- ---- ---------- ----
<S> <C> <C> <C> <C> <C> <C>
Assets:
Guaranteed Investment Contracts,
at Contract Value $ 7,431,799 $ -- $ -- $ -- $ -- $ --
Investments at Fair Value:
Nashua Common Stock Fund -- 3,209,482 -- -- -- --
Mutual Funds -- -- 6,446,023 14,352,562 2,454,966 4,099,339
Collective Investment Fund 11,053,607 -- -- -- -- --
Cash 280,271 -- -- -- -- --
Employee Contributions Receivable 11,979 732 4,885 12,509 2,931 4,160
Employer Contributions Receivable 3,325 2,344 1,528 3,879 971 1,182
Participant Loans Receivable, at
Fair Value -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Net Assets Available for Plan Benefits $18,780,981 $ 3,212,558 $ 6,452,436 $14,368,950 $ 2,458,868 $ 4,104,681
=========== =========== =========== =========== =========== ===========
<CAPTION>
Inter-
Growth Asset Pacific mediate
Company Manager Europe Basin Bond
Fund Fund Fund Fund Fund
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Assets:
Guaranteed Investment Contracts,
at Contract Value $ -- $ -- $ -- $ -- $ --
Investments at Fair Value:
Nashua Common Stock Fund -- -- -- -- --
Mutual Funds 5,684,716 638,618 1,073,248 563,625 87,430
Collective Investment Fund -- -- -- -- --
Cash -- -- -- -- --
Employee Contributions Receivable 5,350 665 1,239 920 294
Employer Contributions Receivable 1,574 226 486 367 66
Participant Loans Receivable, at
Fair Value -- -- -- -- --
---------- -------- ---------- -------- -------
Net Assets Available for Plan Benefits $5,691,640 $639,509 $1,074,973 $564,912 $87,790
========== ======== ========== ======== =======
<CAPTION>
Small Gov't U.S.
Cap Money Equity
Stock Market Index Loan
Fund Fund Fund Fund Total
---- ---- ---- ---- -----
<S> <C> <C> <C> <C> <C>
Assets:
Guaranteed Investment Contracts,
at Contract Value $ -- $ -- $ -- $ -- $ 7,431,799
Investments at Fair Value:
Nashua Common Stock Fund -- -- -- -- 3,209,482
Mutual Funds 738,495 865,236 739,543 -- 37,743,801
Collective Investment Fund -- -- -- -- 11,053,607
Cash -- -- -- -- 280,271
Employee Contributions Receivable 928 1,086 1,219 -- 48,897
Employer Contributions Receivable 409 285 505 -- 17,147
Participant Loans Receivable, at
Fair Value -- -- -- 2,685,736 2,685,736
--------- --------- --------- ----------- -----------
Net Assets Available for Plan Benefits $ 739,832 $ 866,607 $ 741,267 $ 2,685,736 $62,470,740
========= ========= ========= =========== ===========
</TABLE>
See accompanying notes to financial statements
-2-
<PAGE> 6
NASHUA CORPORATION
EMPLOYEES' SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS (WITH FUND INFORMATION)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Guaranteed Nashua
Investment Common
Contract Stock Puritan Magellan Income
Fund Fund Fund Fund Contrafund Fund
---- ---- ---- ---- ---------- ----
<S> <C> <C> <C> <C> <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 -- -- 5,975,783 14,947,653 631,425 3,426,955
Collective Investment Fund 10,188,714 -- -- -- -- --
Cash 529,770 -- -- -- -- --
Employee Contributions Receivable 100,680 4,349 32,877 89,745 5,639 19,495
Employer Contributions Receivable 9,634 52,822 6,709 19,301 1,661 3,915
Participant Loans 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
=========== =========== =========== =========== =========== ===========
<CAPTION>
Inter-
Growth Asset Pacific mediate
Company Manager Europe Basin Bond
Fund Fund Fund Fund Fund
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Assets:
Guaranteed Investment Contracts,
at Contract Value $ -- $ -- $ -- $ -- $ --
Investments at Fair Value:
Nashua Common Stock Fund -- -- -- -- --
Mutual Funds 4,263,377 856,355 763,616 847,247 111,809
Collective Investment Fund -- -- -- -- --
Cash -- -- -- -- --
Employee Contributions Receivable 26,827 6,018 5,179 7,257 2,113
Employer Contributions Receivable 6,840 1,521 1,737 1,881 740
Participant Loans Receivable, at
Fair Value -- -- -- -- --
----------- --------- --------- --------- ---------
Net Assets Available for Plan Benefits $ 4,297,044 $ 863,894 $ 770,532 $ 856,385 $ 114,662
=========== ========= ========= ========= =========
<CAPTION>
Small Gov't U.S.
Cap Money Equity
Stock Market Index Loan
Fund Fund Fund Fund Total
---- ---- ---- ---- -----
<S> <C> <C> <C> <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 375,688 913,529 273,290 -- 33,386,727
Collective Investment Fund -- -- -- -- 10,188,714
Cash -- -- -- -- 529,770
Employee Contributions Receivable 3,567 6,305 1,548 -- 311,599
Employer Contributions Receivable 1,131 1,685 515 -- 110,092
Participant Loans Receivable, at
Fair Value -- -- -- 2,605,851 2,605,851
--------- --------- --------- ----------- -----------
Net Assets Available for Plan Benefits $ 380,386 $ 921,519 $ 275,353 $ 2,605,851 $60,453,595
========= ========= ========= =========== ===========
</TABLE>
See accompanying notes to financial statements
-3-
<PAGE> 7
NASHUA CORPORATION
EMPLOYEE'S SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
(WITH FUND INFORMATION)
YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
Guaranteed Nashua
Investment Common Equity-
Contract Stock Puritan Magellan Income
Fund Fund Fund Fund Contrafund Fund
---- ---- ---- ---- ---------- ----
<S> <C> <C> <C> <C> <C> <C>
Sources of Net Assets:
Employee Contributions $ 996,492 $ 47,511 $ 379,042 $ 978,460 $ 162,484 $ 269,177
Employer Contributions 111,798 482,454 87,663 235,898 42,144 58,257
Investment Income 941,999 -- 737,896 2,378,769 140,535 262,451
Net Appreciation of Investments -- 107,024 129,481 -- 162,334 443,217
Transfers in - Specified Hourly
Empl. Plan 12,986 -- 1,013 11,681 -- 533
Rollovers -- -- -- -- -- --
Loan Repayments 240,747 4,076 83,944 273,052 21,397 64,369
Loan Interest 64,636 1,539 22,129 70,317 3,359 13,657
------------ ----------- ----------- ------------ ----------- -----------
2,368,658 642,604 1,441,168 3,948,177 532,253 1,111,661
------------ ----------- ----------- ------------ ----------- -----------
Applications of Net Assets:
Plan Withdrawals 2,045,275 414,979 747,705 1,315,934 140,962 680,800
Net Depreciation of Investments -- 399,040 -- 808,139 -- --
Loan Withdrawals 344,747 19,268 85,843 295,691 29,151 92,947
Rollovers (see Note 6) 390,694 123,590 93,765 325,844 58,514 121,171
Administrative Expenses 26,831 165 5,554 3,081 254 1,952
------------ ----------- ----------- ------------ ----------- -----------
2,807,547 957,042 932,867 2,748,689 228,881 896,870
------------ ----------- ----------- ------------ ----------- -----------
Increase (Decrease) in Net Assets
During the Year (438,889) (314,438) 508,301 1,199,488 303,372 214,791
Net Transfers Between Funds (943,792) (516,153) (71,234) (1,887,237) 1,516,771 439,525
Net Assets Available for Plan Benefits:
Beginning of Year 20,163,662 4,043,149 6,015,369 15,056,699 638,725 3,450,365
------------ ----------- ----------- ------------ ----------- -----------
------------ ----------- ----------- ------------ ----------- -----------
End of Year $ 18,780,981 $ 3,212,558 $ 6,452,436 $ 14,368,950 $ 2,458,868 $ 4,104,681
============ =========== =========== ============ =========== ===========
<CAPTION>
Inter-
Growth Asset Pacific mediate
Company Manager Europe Basin Bond
Fund Fund Fund Fund Fund
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Sources of Net Assets:
Employee Contributions $ 370,746 $ 66,743 $ 66,976 $ 71,548 $ 38,600
Employer Contributions 94,780 15,984 28,612 22,353 6,677
Investment Income 249,935 52,535 73,389 3,034 8,691
Net Appreciation of Investments 475,902 20,173 133,910 1,612 --
Transfers in - Specified Hourly
Empl. Plan -- -- -- -- --
Rollovers -- -- -- -- --
Loan Repayments 102,031 5,782 11,289 8,536 2,548
Loan Interest 20,732 1,359 4,114 3,163 327
----------- --------- ----------- --------- ---------
1,314,126 162,576 318,290 110,246 56,843
----------- --------- ----------- --------- ---------
Applications of Net Assets:
Plan Withdrawals 502,564 274,305 90,218 205,715 40,059
Net Depreciation of Investments -- -- -- 24,089 4,073
Loan Withdrawals 120,374 22,429 29,489 17,635 11,894
Rollovers (see Note 6) 195,639 27,462 10,130 4,901 6,309
Administrative Expenses 2,431 533 1,531 872 340
----------- --------- ----------- --------- ---------
821,008 324,729 131,368 253,212 62,675
----------- --------- ----------- --------- ---------
Increase (Decrease) in Net Assets
During the Year 493,118 (162,153) 186,922 (142,966) (5,832)
Net Transfers Between Funds 901,478 (62,232) 117,519 (148,507) (21,040)
Net Assets Available for Plan Benefits:
Beginning of Year 4,297,044 863,894 770,532 856,385 114,662
----------- --------- ----------- --------- ---------
----------- --------- ----------- --------- ---------
End of Year $ 5,691,640 $ 639,509 $ 1,074,973 $ 564,912 $ 87,790
=========== ========= =========== ========= =========
<CAPTION>
Small Gov't U.S.
Cap Money Equity
Stock Market Index Loan
Fund Fund Fund Fund Total
---- ---- ---- ---- -----
<S> <C> <C> <C> <C> <C>
Sources of Net Assets:
Employee Contributions $ 57,300 $ 63,253 $ 46,932 $ -- $ 3,615,264
Employer Contributions 23,397 18,655 21,090 -- 1,249,762
Investment Income 29,877 48,599 14,214 -- 4,941,924
Net Appreciation of Investments 33,818 -- 81,864 -- 1,589,335
Transfers in -
Specified Hourly Empl. Plan -- -- -- -- 26,213
Rollovers -- 32,952 -- -- 32,952
Loan Repayments 2,950 9,079 1,378 (831,178) --
Loan Interest 1,089 1,347 556 -- 208,324
--------- --------- --------- ----------- ------------
148,431 173,885 166,034 (831,178) 11,663,774
--------- --------- --------- ----------- ------------
Applications of Net Assets:
Plan Withdrawals 34,493 227,598 86,768 190,257 6,997,632
Net Depreciation of Investments -- -- -- -- 1,235,341
Loan Withdrawals 9,954 13,243 8,655 (1,101,320) --
Rollovers (see Note 6) 2,618 -- 3,443 -- 1,364,080
Administrative Expenses 3,044 2,790 198 -- 49,576
--------- --------- --------- ----------- ------------
50,109 243,631 99,064 (911,063) 9,646,629
--------- --------- --------- ----------- ------------
Increase (Decrease) in Net Assets
During the Year 98,322 (69,746) 66,970 79,885 2,017,145
Net Transfers Between Funds 261,124 14,834 398,944 -- --
Net Assets Available for Plan Benefits:
Beginning of Year 380,386 921,519 275,353 2,605,851 60,453,595
--------- --------- --------- ----------- ------------
--------- --------- --------- ----------- ------------
End of Year $ 739,832 $ 866,607 $ 741,267 $ 2,685,736 $ 62,470,740
========= ========= ========= =========== ============
</TABLE>
See accompanying notes to financial statements
-4-
<PAGE> 8
NASHUA CORPORATION
EMPLOYEES' SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
(WITH FUND INFORMATION)
YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
Guaranteed Nashua
Investment Common Equity-
Contract Stock Puritan Magellan Income
Fund Fund Fund Fund Contrafund Fund
---- ---- ---- ---- ---------- ----
<S> <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
Employer Contributions 126,481 798,190 98,862 214,818 10,119 49,592
Investment Income 1,016,170 -- 303,800 864,095 48,284 188,657
Net Appreciation of Investments -- -- 696,417 2,913,261 18,542 555,040
Loan Repayments 260,658 2,949 61,644 218,688 6,334 38,866
Loan Interest 64,524 1,676 19,002 55,958 480 9,884
------------ ------------ ----------- ------------ --------- -----------
2,960,243 860,003 1,652,270 5,438,241 135,598 1,103,880
------------ ------------ ----------- ------------ --------- -----------
Applications of Net Assets:
Plan Withdrawals 2,180,283 296,123 299,922 665,065 3,290 126,491
Net Depreciation of Investments 53,459 1,699,096 -- -- -- --
Loan Withdrawals 513,010 23,915 123,744 412,954 12,796 67,453
Administrative Expenses 19,786 684 2,150 2,498 8 869
------------ ------------ ----------- ------------ --------- -----------
2,766,538 2,019,818 425,816 1,080,517 16,094 194,813
------------ ------------ ----------- ------------ --------- -----------
Increase (Decrease) in Net Assets
During the Year 193,705 (1,159,815) 1,226,454 4,357,724 119,504 909,067
Net Transfers Between Funds (1,654,384) (368,046) 364,891 622,806 519,221 319,119
Net Assets Available for Plan Benefits:
Beginning of Year 21,624,341 5,571,010 4,424,024 10,076,169 -- 2,222,179
------------ ------------ ----------- ------------ --------- -----------
End of Year $ 20,163,662 $ 4,043,149 $ 6,015,369 $ 15,056,699 $ 638,725 $ 3,450,365
============ ============ =========== ============ ========= ===========
<CAPTION>
Inter-
Growth Asset Pacific mediate
Company Manager Europe Basin Bond
Fund Fund Fund Fund Fund
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Sources of Net Assets:
Employee Contributions $ 395,285 $ 98,690 $ 69,764 $ 141,834 $ 29,461
Employer Contributions 84,834 22,706 26,594 32,046 6,982
Investment Income 195,160 24,551 29,552 -- 4,351
Net Appreciation of Investments 896,167 111,946 89,597 -- 3,826
Loan Repayments 60,100 6,880 9,923 8,505 396
Loan Interest 15,287 1,554 2,896 2,298 74
----------- --------- --------- ----------- ---------
1,646,833 266,327 228,326 184,683 45,090
----------- --------- --------- ----------- ---------
Applications of Net Assets:
Plan Withdrawals 164,238 12,758 49,522 42,191 38,446
Net Depreciation of Investments -- -- -- 70,150 --
Loan Withdrawals 120,794 5,336 18,158 18,359 3,730
Administrative Expenses 973 396 106 176 75
----------- --------- --------- ----------- ---------
286,005 18,490 67,786 130,876 42,251
----------- --------- --------- ----------- ---------
Increase (Decrease) in Net Assets
During the Year 1,360,828 247,837 160,540 53,807 2,839
Net Transfers Between Funds 401,157 (62,461) 2,869 (287,631) 50,796
Net Assets Available for Plan Benefits:
Beginning of Year 2,535,059 678,518 607,123 1,090,209 61,027
----------- --------- --------- ----------- ---------
End of Year $ 4,297,044 $ 863,894 $ 770,532 $ 856,385 $ 114,662
=========== ========= ========= =========== =========
<CAPTION>
Small Gov't U.S.
Cap Money Equity
Stock Market Index Loan
Fund Fund Fund Fund Total
---- ---- ---- ---- -----
<S> <C> <C> <C> <C> <C>
Sources of Net Assets:
Employee Contributions $ 33,140 $ 92,253 $ 18,105 $ -- $ 4,385,776
Employer Contributions 7,858 27,586 6,074 -- 1,512,742
Investment Income 22,150 53,897 4,671 -- 2,755,338
Net Appreciation of Investments -- -- 31,675 -- 5,316,471
Loan Repayments 1,712 11,881 353 (688,889) --
Loan Interest 371 2,752 49 -- 176,805
--------- ----------- --------- ------------ ------------
65,231 188,369 60,927 (688,889) 14,147,132
--------- ----------- --------- ------------ ------------
Applications of Net Assets:
Plan Withdrawals -- 248,296 269 209,936 4,336,830
Net Depreciation of Investments 18,038 -- -- -- 1,840,743
Loan Withdrawals 2,144 10,374 1,633 (1,334,400) --
Administrative Expenses 10 1,462 39 -- 29,232
--------- ----------- --------- ------------ ------------
20,192 260,132 1,941 (1,124,464) 6,206,805
--------- ----------- --------- ------------ ------------
Increase (Decrease) in Net Assets
During the Year 45,039 (71,763) 58,986 435,575 7,940,327
Net Transfers Between Funds 335,347 (460,051) 216,367 -- --
Net Assets Available for Plan Benefits:
Beginning of Year -- 1,453,333 -- 2,170,276 52,513,268
--------- ----------- --------- ------------ ------------
End of Year $ 380,386 $ 921,519 $ 275,353 $ 2,605,851 $ 60,453,595
========= =========== ========= ============ ============
</TABLE>
See accompanying notes to financial statements
-5-
<PAGE> 9
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 Spartan 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 (changed to the Spartan U.S.
Equity Index Fund in 1996) 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.
-6-
<PAGE> 10
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, 1996 and 1995, there were 760 and 705 loans outstanding totalling 2,685,736
and $2,605,851 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 estimated.
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 Audit/Finance &
Investment 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.
-7-
<PAGE> 11
NOTE 3 - INVESTMENTS
- --------------------
The Plan's investments, excluding the Guaranteed Investment Contract Fund, are
summarized as follows:
<TABLE>
<CAPTION>
December 31,
-------------------------------------
1996 1995
----------- -----------
<S> <C> <C>
Nashua Common Stock Fund $ 3,209,482 $ 3,985,978
Fidelity Puritan Fund 6,446,023 5,975,783
Fidelity Magellan Fund 14,352,562 14,947,653
Fidelity Contrafund 2,454,966 631,425
Fidelity Equity-Income Fund 4,099,339 3,426,955
Fidelity Growth Company Fund 5,684,716 4,263,377
Fidelity Asset Manager Fund 638,618 856,355
Fidelity Europe Fund 1,073,248 763,616
Fidelity Pacific Basin Fund 563,625 847,247
Fidelity Intermediate Bond Fund 87,430 111,809
Fidelity Small Cap Stock Fund 738,495 375,688
Fidelity Retirement Government
Money Market Fund 865,236 913,529
Fidelity Spartan U.S. Equity Index Fund 739,543 273,290
----------- -----------
$40,953,283 $37,372,705
=========== ===========
</TABLE>
NOTE 4 - GUARANTEED INVESTMENT CONTRACT FUND
- --------------------------------------------
The Plan's investment in the Guaranteed Investment Contract Fund consists of the
following:
<TABLE>
<CAPTION>
December 31,
-------------------------------------
1996 1995
----------- -----------
<S> <C> <C>
State Mutual Life Assurance Company
5.48% Due 1/1/98 - 1/3/99 $ 646,039 $ 937,376
Life of Virginia
8.32% Due 5/31/97 1,087,422 1,002,636
Lincoln National Life Insurance Company
6.28% Due 12/31/96 929,668 1,457,493
Pacific Mutual Life Insurance Company
5.30% Due 3/30/99 - 6/30/99 779,211 947,515
People's Security Life
5.52% Due 2/28/00 567,309 1,458,182
People's Security Life
5.41% Due 2/28/00 415,531 525,739
Confederation Life Insurance Company
8.77% Due 1/3/95 3,006,619 3,005,923
Fidelity Managed Income Portfolio II 11,053,607 10,188,714
Cash 280,271 529,770
----------- -----------
$18,765,677 $20,053,348
=========== ===========
</TABLE>
The average yields of the Guaranteed Investment Contract Fund for the periods
ended December 31, 1996 and 1995 were 4.8% and 4.9%, respectively. Crediting
interest rates remained the same, as noted above, for both 1996 and 1995.
The issuing institution's 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 was frozen until regulators finalized a rehabilitation plan.
Interest accrual ceased on August 12, 1994. The trustee, under the Plan of
Rehabilitation, has recently completed a series of payments to all plan contract
holders. Account balances as of the date of seizure remained intact and a small
interest payment (approximately 7%) was credited to participants accounts as
well. Payments made subsequent to year end were $2,740,944 on April 25, 1997 and
$349,052 on May 24, 1997.
-8-
<PAGE> 12
NOTE 5 - SAVINGS PLANS MASTER TRUST
- -----------------------------------
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 99.9% and 99.8% of the Master Trust at December 31, 1996 and 1995,
respectively.
<TABLE>
<CAPTION>
December 31,
-------------------------------------
1996 1995
----------- -----------
<S> <C> <C>
Statement of Net Assets
Available for Plan Benefits:
Guaranteed Investment Contracts, at
Contract Value $ 7,451,125 $ 9,368,121
Nashua Common Stock Fund,
at Fair Value 3,213,925 3,995,146
Mutual Funds, at Fair Value 37,776,562 33,446,659
Collective Investment Fund, at Fair Value 11,084,095 10,229,676
Cash 281,044 531,900
Employee Contributions Receivable 48,897 312,251
Employer Contributions Receivable 17,147 110,343
Participant Loans Receivable, at Fair Value 2,685,736 2,608,847
----------- -----------
Net Assets Available for Plan Benefits $62,558,531 $60,602,943
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
December 31,
-------------------------------------
1996 1995
----------- -----------
<S> <C> <C>
Statement of Changes in Net Assets
Available for Plan Benefits:
Sources of Net Assets:
Employee Contributions $3,615,103 $ 4,406,498
Employer Contributions 1,249,798 1,520,574
Investment Income 4,948,193 2,762,262
Net Appreciation of Investments 1,591,827 5,328,978
Rollovers In 32,952 --
Loan Interest 208,324 176,825
----------- -----------
11,646,197 14,195,137
----------- -----------
Application of Net Assets:
Plan Withdrawals 7,039,555 4,355,061
Net Depreciation of Investment 1,236,846 1,845,582
Administrative Expenses 50,128 29,644
Rollovers Out 1,364,080 --
----------- -----------
9,690,609 6,230,287
Increase (Decrease) in Net Assets During
the Year $ 1,955,588 $ 7,964,850
=========== ===========
</TABLE>
The Master Trust purchased 69,700 and 36,300 common shares of Nashua Corporation
at a total cost of $941,484 and $617,519 during 1996 and 1995, respectively. The
Master Trust received $1,421,147 and $222,104 from the sale of 96,685 and 13,200
common shares of Nashua Corporation during 1996 and 1995, respectively.
-9-
<PAGE> 13
NOTE 6 - BUSINESS CHANGES
- -------------------------
Nashua Corporation's Tape Division was sold and its Cerion Technologies
subsidiary was spun off through an initial public offering on May 20 and May 24
of 1996, respectively. At December 31, 1996 and December 31, 1995, participants
of the Tape Division and Cerion Technologies had Plan assets of $7,018,694 and
$54,586; $7,689,843 and $991,260, respectively. As of the respective sale dates,
the participants had the option to take a distribution from the Plan or rollover
into another qualified plan. Rollovers to a new plan maintained by Cerion
Technologies amounted to $1,364,080, while distributions related to the sale of
the Tape Division totaled $2,358,005.
-10-
<PAGE> 14
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
therunto duly authorized.
NASHUA CORPORATION EMPLOYEES'
SAVINGS PLAN
Date: July 14, 1997 By /s/ Paul Buffum
----------------------------------
Paul Buffum
Nashua Corporation Vice President,
General Counsel and Secretary
<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 18, 1997
relating to the financial statements of the Nashua Corporation Employees'
Savings Plan for the year ended December 31, 1996 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 18, 1997 relating to
the financial statements of the Nashua Corporation Employees' Savings Plan for
Specified Hourly Employees for the year ended December 31, 1996 included with
this Form 11-K.
/s/ Price Waterhouse LLP
PRICE WATERHOUSE LLP
Boston, Massachusetts
July 11, 1997
