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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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
For the fiscal year ended December 31, 1997.
-----------------
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 Savings Plan for Specified Hourly Employees
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
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Page 2
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NASHUA CORPORATION
- ------------------
SAVINGS PLAN FOR SPECIFIED
- --------------------------
HOURLY EMPLOYEES
- ----------------
FINANCIAL STATEMENTS
- --------------------
DECEMBER 31, 1997 AND 1996
- --------------------------
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Page 3
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NASHUA CORPORATION
------------------
SAVINGS PLAN FOR SPECIFIED HOURLY EMPLOYEES
-------------------------------------------
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, 1997 and 1996 2-3
Statement of Changes in Net Assets Available for Plan Benefits
(With Fund Information) for the Years Ended
December 31, 1997 and 1996 4-5
Notes to Financial Statements 6-11
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
REPORT OF INDEPENDENT ACCOUNTANTS
July 15, 1998
To the Participants and Administrator
of the Nashua Corporation Savings Plan
for Specified Hourly Employees
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 Savings Plan for Specified Hourly
Employees (the "Plan") at December 31, 1997 and 1996, 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.
As discussed in Note 1, effective December 31, 1997, the Plan was merged into
the Nashua Corporation Employee's Savings Plan.
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 purpose 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.
1
<PAGE> 5
<TABLE>
NASHUA CORPORATION
SAVINGS PLAN FOR SPECIFIED HOURLY EMPLOYEES
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS (WITH FUND INFORMATION)
DECEMBER 31, 1997
<CAPTION>
Guaranteed Nashua
Investment Common Equity- Growth Asset
Contract Stock Puritan Magellan Income Company Manager Europe
Fund Fund Fund Fund Contrafund Fund Fund Fund Fund
---- ---- ---- ---- ---------- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Assets:
Guaranteed Investment Contracts,
at Contract Value $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
Investments at Fair Value:
Nashua Common Stock Fund -- -- -- -- -- -- -- -- --
Mutual Funds -- -- -- -- -- -- -- -- --
Collective Investment Fund -- -- -- -- -- -- -- -- --
Treasury Instruments -- -- -- -- -- -- -- -- --
Cash -- -- -- -- -- -- -- -- --
Net Assets Available for Plan Benefits $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
=====================================================================================
</TABLE>
<TABLE>
<CAPTION>
Pacific Intermediate Small Cap Gov't Money U.S. Equity
Basin Bond Stock Market Index Loan
Fund Fund Fund Fund Fund Fund Total
---- ---- ---- ---- ---- ---- -----
<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 -- -- -- -- -- -- --
Collective Investment Fund -- -- -- -- -- -- --
Treasury Instruments -- -- -- -- -- -- --
Cash -- -- -- -- -- -- --
Net Assets Available for Plan Benefits $ -- $ -- $ -- $ -- $ -- $ -- $ --
==========================================================================
</TABLE>
See accompanying notes to financial statements
-2-
<PAGE> 6
<TABLE>
NASHUA CORPORATION
SAVINGS PLAN FOR SPECIFIED HOURLY EMPLOYEES
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS (WITH FUND INFORMATION)
DECEMBER 31, 1996
<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>
Assets:
Guaranteed Investment Contracts,
at Contract Value $19,326 $ -- $-- $ -- $ -- $ -- $ -- $ --
Investments at Fair Value:
Nashua Common Stock Fund -- 4,443 -- -- -- -- -- --
Mutual Funds -- -- -- 12,838 2,107 1,459 15,187
Collective Investment Fund 30,488 -- -- -- -- -- -- --
Cash 773 -- -- -- -- -- -- --
Employee Contributions Receivable -- -- -- -- -- -- -- --
Employer Contributions Receivable -- -- -- -- -- -- -- --
Participant Loans Receivable, at --
Fair Value -- -- -- -- -- -- -- --
--------------------------------------------------------------------------------------
Net Assets Available for Plan Benefits $50,587 $4,443 $-- $12,838 $2,107 $1,459 $15,187 $ --
======================================================================================
</TABLE>
<TABLE>
<CAPTION>
Pacific Intermediate Gov't Money U.S. Equity
Europe Basin Bond Market Index Loan
Fund Fund Fund Sm Cap Stk Fund Fund Fund Total
---- ---- ---- ---------- ---- ---- ---- -----
<S> <C> <C> <C> <C> <C> <C> <C>
Assets:
Guaranteed Investment Contracts,
at Contract Value $-- $-- $-- $ -- $ -- $ -- $ -- $19,326
Investments at Fair Value:
Nashua Common Stock Fund -- -- -- -- -- -- -- 4,443
Mutual Funds 9 161 -- -- 1,000 -- -- 32,761
Collective Investment Fund -- -- -- -- -- -- -- 30,488
Cash -- -- -- -- -- -- -- 773
Employee Contributions Receivable -- -- -- -- -- -- -- --
Employer Contributions Receivable -- -- -- -- -- -- -- --
Participant Loans Receivable, at
Fair Value -- -- -- -- -- -- -- --
------------------------------------------------------------------------------------------
Net Assets Available for Plan Benefits $ 9 $161 $-- $ -- $1,000 $ -- $ -- $87,791
===========================================================================================
</TABLE>
See accompanying notes to financial statements.
-3-
<PAGE> 7
<TABLE>
NASHUA CORPORATION
SAVINGS PLAN FOR SPECIFIED HOURLY EMPLOYEES
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS (WITH FUND INFORMATION)
YEAR ENDED DECEMBER 31, 1997
<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 $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
Employer Contributions -- -- -- -- -- -- -- --
Investment Income 1,690 -- -- 387 35 260 330 --
Net Appreciation of Investments -- 341 -- 1,402 -- 795 2,129 --
Rollovers -- -- -- -- -- -- -- --
Loan Repayments -- -- -- -- -- -- -- --
Loan Interest -- -- -- -- -- -- -- --
-------------------------------------------------------------------------------------------
1,690 341 -- 1,789 35 1,055 2,459 --
-------------------------------------------------------------------------------------------
Applications of Net Assets:
Plan Withdrawals 47,785 3,553 -- 10,017 2,082 -- 14,407 --
Net Depreciation of Investments -- 22 -- -- 60 -- -- --
Loan Withdrawals -- -- -- -- -- -- -- --
Rollovers -- -- -- -- -- -- -- --
Administrative Expenses 254 -- -- 50 -- 80 -- --
-------------------------------------------------------------------------------------------
48,039 3,575 -- 10,067 2,142 80 14,407 --
-------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
During the Year Prior to Transfers (46,349) (3,234) -- (8,278) (2,107) 975 (11,948) --
Net Transfer between Funds (3,227) -- -- -- -- 3,227 -- --
Net Transfer Due to Merger of Plans (1,011) (1,209) -- (4,560) -- (5,661) (3,239) --
Net Assets Available for Plan Benefits:
Beginning of Year 50,587 4,443 -- 12,838 2,107 1,459 15,187 --
-------------------------------------------------------------------------------------------
End of Year $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
===========================================================================================
</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 $-- $-- $-- $ -- $ -- $ -- $ -- $ --
Employer Contributions -- -- -- -- -- -- -- --
Investment Income -- 3 -- -- 51 -- -- 2,756
Net Appreciation of Investments 2 -- -- -- -- -- -- 4,669
Rollovers -- -- -- -- -- -- -- --
Loan Repayments -- -- -- -- -- -- -- --
Loan Interest -- -- -- -- -- -- -- --
-------------------------------------------------------------------------------------------
2 3 -- -- 51 -- -- 7,425
-------------------------------------------------------------------------------------------
Applications of Net Assets:
Plan Withdrawals 1 -- -- -- 2 -- -- 77,847
Net Depreciation of Investments -- 27 -- -- -- -- -- 109
Loan Withdrawals -- -- -- -- -- -- -- --
Rollovers -- -- -- -- -- -- -- --
Administrative Expenses 10 -- -- -- 80 -- -- 474
-------------------------------------------------------------------------------------------
11 27 -- -- 82 -- -- 78,430
-------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
During the Year Prior to Transfers (9) (24) -- -- (31) -- -- (71,005)
Net Transfer between Funds -- -- -- -- -- -- -- --
Net Transfer Due to Merger of Plans -- (137) -- -- (969) -- -- (16,786)
Net Assets Available for Plan Benefits:
Beginning of Year 9 161 -- -- 1,000 -- -- 87,791
-------------------------------------------------------------------------------------------
End of Year $-- $-- $-- $ -- $ -- $ -- $ -- $ --
===========================================================================================
</TABLE>
See accompanying notes to financial statements
-4-
<PAGE> 8
<TABLE>
NASHUA CORPORATION
SAVINGS PLAN FOR SPECIFIED HOURLY EMPLOYEES
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS (WITH FUND INFORMATION)
YEAR ENDED DECEMBER 31, 1996
<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 $ (169) $ -- $ 32 $ (129) $ -- $ 70 $ 35 $--
Employer Contributions (52) 6 24 (18) -- 41 20 --
Investment Income 2,732 -- 122 2,449 88 142 682 --
Net Appreciation of Investments 1 97 394 -- 19 359 1,620 --
Loan Repayments -- -- -- -- -- -- -- --
Loan Interest -- -- -- -- -- -- -- --
-----------------------------------------------------------------------------------------
2,512 103 572 2,302 107 612 2,357 --
-----------------------------------------------------------------------------------------
Applications of Net Assets:
Plan Withdrawals 15,435 4,226 11,135 4,392 -- 2,690 1,049 --
Net Depreciation of Investments -- 597 -- 903 -- -- -- --
Loan Withdrawals -- -- -- -- -- -- -- --
Transfers to Regular Savings Plan 12,986 -- 1,013 11,681 -- 533 -- --
Administrative Expenses 258 5 20 110 -- 60 -- --
-----------------------------------------------------------------------------------------
28,679 4,828 12,168 17,086 -- 3,283 1,049 --
-----------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
During the Year Prior to Transfers (26,167) (4,725) (11,596) (14,784) 107 (2,671) 1,308 --
Net Transfers Between Funds -- -- -- (2,000) 2,000 -- -- --
Net Assets Available for Plan Benefits:
Beginning of Year 76,754 9,168 11,596 29,622 -- 4,130 13,879 --
-----------------------------------------------------------------------------------------
End of Year $ 50,587 $ 4,443 $ -- $ 12,838 $2,107 $ 1,459 $15,187 $--
=========================================================================================
</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 $-- $-- $-- $-- $ -- $ -- $ -- $ (161)
Employer Contributions 4 -- -- -- 11 -- -- 36
Investment Income 1 1 -- -- 52 -- -- 6,269
Net Appreciation of Investments 2 -- -- -- -- -- -- 2,492
Loan Repayments -- -- -- -- -- -- -- --
Loan Interest -- -- -- -- -- -- -- --
----------------------------------------------------------------------------------------
7 1 -- -- 63 -- -- 8,636
----------------------------------------------------------------------------------------
Applications of Net Assets:
Plan Withdrawals -- -- -- -- -- -- 2,996 41,923
Net Depreciation of Investments -- 5 -- -- -- -- -- 1,505
Loan Withdrawals -- -- -- -- -- -- -- --
Transfers to Regular Savings Plan -- -- -- -- -- -- -- 26,213
Administrative Expenses 10 -- -- -- 89 -- -- 552
----------------------------------------------------------------------------------------
10 5 -- -- 89 -- 2,996 70,193
----------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
During the Year Prior to Transfers (3) (4) -- -- (26) -- (2,996) (61,557)
Net Transfers Between Funds -- -- -- -- -- -- -- --
Net Assets Available for Plan Benefits:
Beginning of Year 12 165 -- -- 1,026 -- 2,996 149,348
----------------------------------------------------------------------------------------
End of Year $ 9 $161 $ -- $ -- $1,000 $ -- $ -- $ 87,791
========================================================================================
</TABLE>
See accompanying notes to financial statements.
-5-
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NASHUA CORPORATION
------------------
SAVINGS PLAN FOR SPECIFIED HOURLY EMPLOYEES
-------------------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The financial statements of the Nashua Corporation Savings Plan for Specified
Hourly Employees ("the Plan") are presented on the accrual basis of accounting.
PLAN ESTABLISHMENT
The Plan was established January 1, 1992 for hourly employees at Nashua
Corporation's Santa Clara facility. Subsequently, the hourly employees of Nashua
Corporation's Exeter facility were eligible to participate in the Plan. On May
25, 1994 Nashua Corporation's Santa Clara facility was sold and the Plan
transferred $1,214,400 to a plan established by the buyer.
PLAN MERGER
Effective December 31, 1997 the Plan merged into the Nashua Corporation
Employees' Savings Plan.
ASSET MAINTENANCE
Fidelity Management Trust Company was the Plan trustee ("the Trustee"). Assets
of the Plan were 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 Contrafund, Fidelity Small Cap Stock Fund,
Fidelity Spartan U.S. Equity Index Portfolio, or Fidelity Retirement Government
Money Market Fund), a Guaranteed Investment Contract Fund managed by the Trustee
or the Nashua Common Stock Fund.
The Plan's assets were commingled with assets of the Nashua Corporation
Employees' Savings Plan in a participant-directed master trust arrangement. The
Plan's participation in the net assets of the master trust was recorded based on
individual plan participants' account balances. Investment income and expenses
for each investment option were 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") and treasury instruments
held in the Plan were valued at closing sales prices supplied by a pricing
service. The Plan's guaranteed investment contracts were 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 were valued at the respective funds' closing net asset values.
Investment transactions were recorded on the trade date. Participant loans were
valued at cost plus accrued interest which approximates fair value. Cost was
determined on an average cost basis.
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INVESTMENT INCOME
Income from investments was recorded as earned on an accrual basis.
CONTRIBUTIONS
The Plan had certain established criteria for eligibility. All contributions
were immediately 100% vested.
401(k) Plan contributions - Employees could make a basic contribution of up to
15% of their earnings to the Plan. The Company contributed an amount equal to
50% of up to 6% of the employees' contributed earnings. Employees could direct
their contributions and the Company matching contribution into any of the
investment funds available for their contributions. Employee's contributions
into the Nashua Common Stock Fund were limited to 25% of their account balance.
WITHDRAWALS AND LOANS
Plan participants could withdraw part or all of their account balances subject
to certain restrictions stipulated by current Internal Revenue Service
regulations. The Plan also provided for optional forms of withdrawal at the time
of retirement. Plan participants could borrow against individual Plan balances
subject to Plan and current Internal Revenue Service regulations. Interest on
the loans was payable at 2% above the prime rate. Loans were 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 was 20 years. At December
31, 1997 and 1996, there were no outstanding loans.
EXPENSES
Trustee administrative fees, audit and other expenses were paid directly by the
Company and, accordingly, such items were not reflected in the financial
statements of the Plan. Fees for participant loans were paid by the Plan and
were reflected in the accompanying financial statements as administrative
expenses.
USE OF ESTIMATES
The preparation of financial statements in accordance with generally accepted
accounting principles required management to make estimates and assumptions that
affected the reported amounts and disclosures in the financial statements.
Actual results could differ from those estimated.
FEDERAL INCOME TAX STATUS
The Company was advised by the U.S. Treasury Department on November 17, 1993
that the Plan is qualified under Section 401 of the Internal Revenue Code ("the
<PAGE> 11
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Code") and is exempt from federal income taxes. The Plan has since been amended,
however, a new 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 was provided for general information
purposes only. Participants should refer to the Plan agreement for more complete
information.
1. GENERAL - The Plan was a defined contribution plan covering all eligible
employees. It was subject to the provisions of ERISA.
2. TERMINATION - The Plan was administered by the Nashua Audit/Finance &
Investment Committee, which is composed of officers of the Company. The
Company anticipated and believed that the Plan would continue without
interruption, but reserved the right to discontinue the Plan. In the event
that such discontinuance resulted in the termination of the Plan, the Plan
provided that net assets would be allocated among the participants.
NOTE 3 - INVESTMENTS
The Plan's investments, excluding the Guaranteed Investment Contract Fund, were
summarized as follows:
<TABLE>
<CAPTION>
December 31,
----------------------
1997 1996
------- -------
<S> <C> <C>
Nashua Common Stock Fund $ - $ 4,443
Fidelity Magellan Fund - 12,838
Fidelity Contrafund - 2,107
Fidelity Equity Income Fund - 1,459
Fidelity Growth Company Fund - 15,187
Fidelity Europe Fund - 9
Fidelity Pacific Basin Fund - 161
Fidelity Retirement Government
Money Market Fund - 1,000
------- -------
$ - $37,204
======= =======
</TABLE>
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NOTE 4 - GUARANTEED INVESTMENT CONTRACT FUND
The Plan's investment in the Guaranteed Investment Contract Fund consists of the
following:
<TABLE>
<CAPTION>
December 31,
---------------------
1997 1996
------- -------
<S> <C> <C>
Pacific Mutual Life Insurance Company
5.3% Due 3/30/99 - 6/30/99 $ - $ 2,150
State Mutual Life Assurance
5.48% Due 1/1/98 - 1/3/99 - 1,782
Life of Virginia
8.32% Due 3/31/97 - 3,000
Lincoln National Life Insurance Company
6.28% Due 12/31/96 - 2,565
People's Security Life
5.52% Due 2/28/00 - 1,565
People's Security Life
5.41% Due 2/28/00 - 1,146
Confederation Life Insurance Company
8.77% Due 1/3/95 - 7,118
Fidelity Managed Income Portfolio II - 30,488
Cash - 773
------- -------
$ - $50,587
======= =======
</TABLE>
The average yields of the Guaranteed Investment Contract Fund for the periods
ended December 31, 1997 and 1996 were approximately 6.4% and 4.8%, respectively.
Crediting interest rates remained the same, as noted above, for both 1997 and
1996.
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.
<PAGE> 13
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NOTE 5 - SAVINGS PLANS MASTER TRUST
The assets of the Plan had 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 was prepared. The effect of converting to the accrual basis was to record
accrued employer and employee contributions receivable. The Plan owned 0% and
0.1% of the Master Trust as of December 31, 1997 and 1996, respectively.
<TABLE>
<CAPTION>
December 31,
--------------------------
1997 1996
----------- -----------
<S> <C> <C>
Statement of Net Assets
Available for Plan Benefits:
Guaranteed Investment Contracts, at Contract Value $ 4,691,494 $ 7,451,125
Nashua Common Stock Fund, at Fair Value 2,832,373 3,213,925
Mutual Funds, at Fair Value 45,933,949 37,776,562
Collective Investment Fund, at Fair Value 9,095,453 11,084,095
Treasury Instruments, at Fair Value 3,361,455 -
Cash 277,019 281,044
Employee Contributions Receivable 14,844 48,897
Employer Contributions Receivable 42,164 17,147
Participant Loans Receivable, at Fair Value 2,201,717 2,685,736
----------- -----------
Net Assets Available for Plan Benefits $68,450,468 $62,558,531
=========== ===========
<CAPTION>
Year Ended
December 31,
--------------------------
1997 1996
----------- -----------
<S> <C> <C>
Statement of Changes in Net Assets
Available for Plan Benefits:
Sources of Net Assets:
Employee Contributions $ 3,395,798 $ 3,615,103
Employer Contributions 1,177,340 1,249,798
Investment Income 4,554,817 4,948,193
Net Appreciation of Investments 5,689,688 1,591,827
Rollovers In 18,665 32,952
Loan interest 196,126 208,324
----------- -----------
15,032,434 11,646,197
----------- -----------
Applications of Net Assets:
Plan Withdrawals 8,665,329 7,039,555
</TABLE>
<PAGE> 14
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<TABLE>
<S> <C> <C>
Net Depreciation of Investment 165,421 1,236,846
Administrative Expenses 42,128 50,128
Rollovers Out 267,619 1,364,080
----------- -----------
9,140,497 9,690,609
----------- -----------
Increase in Net Assets During the Year $ 5,891,937 $ 1,955,588
=========== ===========
</TABLE>
The Master Trust purchased 15,500 and 69,700 common shares of Nashua Corporation
at a total cost of $209,098 and $941,484 during 1997 and 1996, respectively. The
Master Trust received $443,411 and $1,421,147 from the sale of 38,010 and 96,685
common shares of Nashua Corporation during 1997 and 1996, respectively.
<PAGE> 15
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NASHUA CORPORATION SAVINGS PLAN FOR SPECIFIED HOURLY EMPLOYEES. 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 SAVINGS PLAN
FOR SPECIFIED HOURLY EMPLOYEES.
Date: July 16, 1998 By: /s/ Peter C. Anastos
------------- --------------------------------
Peter C. Anastos
Nashua Corporation
Vice President, General Counsel
and Secretary
<PAGE> 1
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 July 15, 1998
relating to the financial statements of the Nashua Corporation Employees'
Savings Plan for the year ended December 31, 1997 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 July 15, 1998 relating to
the financial statements of the Nashua Corporation Employees' Savings Plan for
Specified Hourly Employees for the year ended December 31, 1997 included with
this Form 11-K.
Pricewaterhouse Coopers LLP
Boston, Massachusetts
July 16, 1998
