UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended September 30, 1995
Commission file Number 1-9457
SHELBY WILLIAMS INDUSTRIES, INC.
(Exact name of registrant as specified in its charter.)
Delaware 62-0974443
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1348 Merchandise Mart
Chicago, Illinois 60654
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(312) 527-3593
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 of 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
YES [X] NO [ ]
At October 25, 1995, there were 8,955,757 shares of registrant's
common stock outstanding.
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PART I - FINANCIAL INFORMATION
SHELBY WILLIAMS INDUSTRIES, INC.
Consolidated Statements of Income
Three Months and Nine Months Ended
September 30, 1995 and 1994
(Unaudited)
(Amounts in thousands, except per share data)
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
________ ________ ________ ________
<S> <C> <C>
Net sales $42,518 $38,859 $124,171 $117,189
Cost of goods sold 33,139 31,001 97,115 93,268
______ ______ ______ ______
Gross profit 9,379 7,858 27,056 23,921
Selling, general and
administrative
expenses 6,502 6,377 19,473 19,167
______ ______ ______ ______
2,877 1,481 7,583 4,754
Other deductions
(income):
Interest expense 319 322 952 861
Interest and dividend
income (6) - (8) -
Miscellaneous expense
(income) (28) (13) (31) 46
______ ______ ______ ______
285 309 913 907
______ ______ ______ ______
Income before income
taxes 2,592 1,172 6,670 3,847
______ ______ ______ ______
Income taxes:
Current 659 137 1,591 478
Deferred 59 159 178 604
______ ______ ______ ______
718 296 1,769 1,082
______ ______ ______ ______
Net income $ 1,874 $ 876 $ 4,901 $ 2,765
====== ====== ====== ======
Net income per share $ .21 $ .10 $ .55 $ .31
====== ====== ====== ======
Weighted average number
of common shares
outstanding 8,952 8,999 8,967 9,065
====== ====== ====== ======
<FN>
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<TABLE>
SHELBY WILLIAMS INDUSTRIES, INC.
Consolidated Balance Sheets
September 30, 1995 and December 31, 1994
(Unaudited)
(Amounts in thousands, except per share data)
<CAPTION>
September 30, 1995 December 31, 1994
__________________ _________________
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 2,129 $ 1,633
Accounts receivable, less
allowance for doubtful
accounts of $484 at
September 30, 1995 and
$471 at December 31,
1994 25,852 24,124
Inventories:
Raw materials 13,990 12,365
Work in process 2,335 4,880
Finished goods 13,417 11,217
______ ______
29,742 28,462
Prepaid expense 3,576 2,860
______ ______
Total current assets 61,299 57,079
Investment in affiliate 50 50
Excess of cost over net assets
of acquired company 180 186
Property, plant and equipment
at cost:
Land and land improvements 2,876 2,870
Buildings and leasehold
improvements 25,352 25,256
Machinery and equipment 24,618 23,592
Construction in progress 65 209
______ ______
52,911 51,927
Less accumulated
depreciation and
amortization 23,587 22,053
______ ______
29,324 29,874
Other assets 1,360 1,331
______ ______
$92,213 $88,520
====== ======
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<TABLE>
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C> <C>
Current liabilities:
Short-term borrowings $ 6,700 $ 8,450
Accounts payable 12,283 9,972
Customer deposits on
orders in process 3,689 3,391
Accrued liabilities 6,094 6,738
Income taxes 1,159 387
Current portion of long-
term debt 49 49
______ ______
Total current liabilities 29,974 28,987
Long-term debt 8,858 8,895
Deferred income taxes 2,158 1,980
Stockholder's equity:
Common stock, $.05 par value;
authorized 30,000 shares;
issued 11,775 shares
(1994-11,758) 589 588
Capital in excess of par value 7,826 7,687
Retained earnings 62,145 59,129
Pension liability adjustment (871) (871)
______ ______
69,689 66,533
Less common stock held in
treasury; 2,819 shares
at cost (1994-2,759) 18,466 17,875
______ ______
Total stockholders' equity 51,223 48,658
$92,213 $88,520
====== ======
<FN>
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<TABLE>
SHELBY WILLIAMS INDUSTRIES, INC.
Consolidated Statements of Cash Flows
Nine Months Ended September 30, 1995 and 1994
(Unaudited)
(Amounts in thousands)
<CAPTION>
1995 1994
___________________________
<S> <C> <C>
Cash flows from operating activities:
Net income $4,901 $2,765
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amoritzation 2,135 2,081
Provision for losses on accounts
receivable 174 108
Equity change in affiliate - 10
Change in assets and liabilities:
Accounts receivable (1,902) 1,172
Inventories (1,280) (4,671)
Prepaid expenses (716) (408)
Accounts payable and accrued
liabilities 1,965 1,271
Income taxes payable 772 (769)
Increase in deferred taxes 178 778
Other (29) (55)
_____ _____
Net cash provided by operating
activities 6,198 2,282
_____ _____
Cash flows from investing activities:
Proceeds from disposal of property,
plant and equipment 128 -
Capital expenditures (1,707) (1,870)
_____ _____
Net cash used by investing activities (1,579) (1,870)
_____ _____
Cash flows from financing activities:
Net borrowings (repayment)
of short-term borrowings (1,750) 2,225
Principal payments of long-term debt (37) (33)
Sale of common stock under stock
option plan 140 19
Purchase of common stock for the
treasury (591) (1,049)
Dividends declared and paid (1,885) (1,903)
_____ _____
Net cash used by financing
activities (4,123) (741)
_____ _____
Net increase (decrease) in cash
and cash equivalents 496 (329)
Cash and cash equivalents at beginning
of period 1,633 1,018
_____ _____
Cash and cash equivalents at end of
period $2,129 $ 689
===== =====
Supplemental cash flow information:
Cash paid during the period for:
Interest $ 950 $ 864
Income taxes 819 1,073
_____ _____
$1,769 $1,937
===== =====
<FN>
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SHELBY WILLIAMS INDUSTRIES, INC.
September 30, 1995
Item 1. Financial Statements
See attached unaudited statements as follows:
Consolidated Statements of Income for three months and for
nine months ended September 30, 1995 and 1994.
Consoldiated Balance Sheets at September 30, 1995 and December 31,
1994.
Consolidated Statements of Cash Flows for nine months ended
September 30, 1995 and 1994.
Item 2. Managements' Discussion and Analysis of Financial Condition
and Results of Operations
Material Changes in Financial Condition
There were no major capital expenditures during the third quarter
of 1995 and none are planned for the remainder of 1995. The Company's
balance sheet strengthened during the nine months ended September 30,
1995, with shareholders' equity increasing by approximately $2.6 million
to close with $51.2 million at which time the Company's current ratio
stood at 2.0-to-1.
Material Changes in Results of Operations
Sales for the quarter ended September 30, 1995 increased 9.4 percent to
$42,518,000 from $38,859,000 in the comparable period last year, of which
approximately one percent was due to pricing. Refurbishing programs, which
had been delayed in the first part of this decade, have accelerated in
recent quarters, fueling much of this sales growth. The gross margin
widened by two percentage points to 22 percent from 20 percent in the
quarter, reflecting stronger overhead utilization, internal efficiencies
and a favorable product mix. An improvement as a percent of sales in
selling, general and administrative expenses, from 16.4 percent to 15.3
percent, resulted primarily as a function of volume. Third quarter net
income rose 114 percent to $1,874,000, or 21 cents per share, from
$876,000, or 10 cents per share, in the year-earlier quarter.
For the first nine months of 1995, net income increased 77 percent to
$4,901,000, or 55 cents per share, from $ 2,765,000, or 31 cents per share,
a year ago. Sales grew 6 percent through September to $124.2 million
from $117.2 million. The gross margin grew to 21.8 percent from 20.4
percent a year ago, owing to the same factors that helped third quarter
margin growth.
The backlog of unshipped orders as of September 30, 1995 was
approximately $30 million.
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits
27 Financial Data Schedule (EDGAR only).
b. Reports on Form 8-K
No reports have been filed on Form 8-K during this
quarter.
SHELBY WILLIAMS INDUSTRIES, INC.
SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
<PAGE>
SHELBY WILLIAMS INDUSTRIES, INC.
(Registrant)
October 25, 1995 S/Robert P. Coulter
__________________________________
Robert P. Coulter
President and Director
(Principal Operating Officer)
October 25, 1995 S/Sam Ferrell
_________________________________
Sam Ferrell
Vice President of Finance, Treasurer
and Assistant Secretary
(Principal Financial Officer)
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S>
<FISCAL-YEAR-END> Dec-31-1994
<PERIOD-END> September-30-1995
<PERIOD-TYPE> 9-mos
<CASH> 2,129
<SECURITIES> 0
<RECEIVABLES> 26,336
<ALLOWANCES> 484
<INVENTORY> 29,742
<CURRENT-ASSETS> 61,299
<PP&E> 52,911
<DEPRECIATION> 23,587
<TOTAL-ASSETS> 92,213
<CURRENT-LIABILITIES> 29,974
<BONDS> 0
0
0
<COMMON> 589
<OTHER-SE> 50,634
<TOTAL-LIABILITY-AND-EQUITY> 92,213
<SALES> 124,171
<TOTAL-COSTS> 97,115
<OTHER-EXPENSES> 19,473
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 952
<INCOME-PRETAX> 6,670
<INCOME-TAX> 1,769
<INCOME-CONTINUING> 4,901
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,901
<EPS-PRIMARY> .55
<EPS-DILUTED> .55
</TABLE>
