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 June 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 August 4, 1995, there were 8,949,690 shares of registrant's
common stock outstanding.
<PAGE>
<TABLE>
PART I - FINANCIAL INFORMATION
SHELBY WILLIAMS INDUSTRIES, INC.
Consolidated Statements of Income
Three Months and Six Months Ended
June 30, 1995 and 1994
(Unaudited)
(Amounts in thousands, except per share data)
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
________ ________ ________ ________
<S> <C> <C>
Net sales $42,352 $40,208 $81,653 $78,330
Cost of goods sold 33,075 31,868 63,976 62,267
______ ______ ______ ______
Gross profit 9,277 8,340 17,677 16,063
Selling, general and
administrative
expenses 6,631 6,463 12,971 12,790
______ ______ ______ ______
2,646 1,877 4,706 3,273
Other deductions
(income):
Interest expense 296 287 633 539
Interest and dividend
income - - (2) -
Miscellaneous expense
(income) 37 36 (3) 59
______ ______ ______ ______
333 323 628 598
______ ______ ______ ______
Income before income
taxes 2,313 1,554 4,078 2,675
______ ______ ______ ______
Income taxes:
Current 552 65 932 341
Deferred 59 385 119 445
______ ______ ______ ______
611 450 1,051 786
______ ______ ______ ______
Net income $ 1,702 $ 1,104 $ 3,027 $ 1,889
====== ====== ====== ======
Net income per share $ .19 $ .12 $ .34 $ .21
====== ====== ====== ======
Weighted average number
of common shares
outstanding 8,968 9,094 8,974 9,098
====== ====== ====== ======
<FN>
</TABLE>
<PAGE>
<TABLE>
SHELBY WILLIAMS INDUSTRIES, INC.
Consolidated Balance Sheets
June 30, 1995 and December 31, 1994
(Unaudited)
(Amounts in thousands, except per share data)
<CAPTION>
June 30, 1995 December 31, 1994
_______________ _________________
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 2,378 $ 1,633
Accounts receivable, less
allowance for doubtful
accounts of $522 at
June 30, 1995 and
$471 at December 31,
1994 24,442 24,124
Inventories:
Raw materials 14,176 12,365
Work in process 2,765 4,880
Finished goods 12,762 11,217
______ ______
29,703 28,462
Prepaid expense 2,767 2,860
______ ______
Total current assets 59,290 57,079
Investment in affiliate 50 50
Excess of cost over net assets
of acquired company 182 186
Property, plant and equipment
at cost:
Land and land improvements 2,873 2,870
Buildings and leasehold
improvements 25,284 25,256
Machinery and equipment 23,808 23,592
Construction in progress 463 209
______ ______
52,428 51,927
Less accumulated
depreciation and
amortization 22,970 22,053
______ ______
29,458 29,874
Other assets 1,325 1,331
______ ______
$90,305 $88,520
====== ======
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C> <C>
Current liabilities:
Short-term borrowings $ 4,950 $ 8,450
Accounts payable 13,692 9,972
Customer deposits on
orders in process 4,721 3,391
Accrued liabilities 4,889 6,738
Income taxes 1,070 387
Current portion of long-
term debt 49 49
______ ______
Total current liabilities 29,371 28,987
Long-term debt 8,871 8,895
Deferred income taxes 2,099 1,980
Stockholder's equity:
Common stock, $.05 par value;
authorized 30,000 shares;
issued 11,761 shares
(1994-11,758) 588 588
Capital in excess of par value 7,710 7,687
Retained earnings 60,897 59,129
Pension liability adjustment (871) (871)
______ ______
68,324 66,533
Less common stock held in
treasury; 2,811 shares
at cost (1994-2,759) 18,360 17,875
______ ______
Total stockholders' equity 49,964 48,658
$90,305 $88,520
====== ======
<FN>
</TABLE>
<PAGE>
<TABLE>
SHELBY WILLIAMS INDUSTRIES, INC.
Consolidated Statements of Cash Flows
Six Months Ended June 30, 1995 and 1994
(Unaudited)
(Amounts in thousands)
<CAPTION>
1995 1994
___________________________
<S> <C> <C>
Cash flows from operating activities:
Net income $3,027 $1,889
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amoritzation 1,431 1,375
Provision for losses on accounts
receivable 149 108
Change in assets and liabilities:
Accounts receivable (467) 10
Inventories (1,241) (4,226)
Prepaid expenses 93 (316)
Accounts payable and accrued
liabilities 3,201 967
Income taxes payable 683 (557)
Increase in deferred taxes 119 619
Other 6 22
_____ _____
Net cash provided (used) by operating
activities 7,001 (109)
_____ _____
Cash flows from investing activities:
Proceeds from disposal of property,
plant and equipment 93 -
Capital expenditures (1,104) (1,149)
_____ _____
Net cash used by investing activities (1,011) (1,149)
_____ _____
Cash flows from financing activities:
Net borrowings (repayment)
of short-term borrowings (3,500) 2,500
Principal payments of long-term debt (24) (21)
Sale of common stock under stock
option plan 23 19
Purchase of common stock for the
treasury (485) (265)
Dividends declared and paid (1,259) (1,273)
_____ _____
Net cash provided (used) by
financing activities (5,245) 960
_____ _____
Net increase (decrease) in cash
and cash equivalents 745 (298)
Cash and cash equivalents at beginning
of period 1,633 1,018
_____ _____
Cash and cash equivalents at end of
period $2,378 $ 720
===== =====
Supplemental cash flow information:
Cash paid during the period for:
Interest $ 636 $ 545
Income taxes 249 724
_____ _____
$ 885 $1,269
===== =====
<FN>
</TABLE>
<PAGE>
SHELBY WILLIAMS INDUSTRIES, INC.
June 30, 1995
Item 1. Financial Statements
See attached unaudited statements as follows:
Consolidated Statements of Income for three months and for
six months ended June 30, 1995 and 1994.
Consoldiated Balance Sheets at June 30, 1995 and December 31,
1994.
Consolidated Statements of Cash Flows for six months ended
June 30, 1995 and 1994.
Item 2. Managements' Discussion and Analysis of Financial Condition
and Results of Operations
Material Changes in Financial Condition
During the second quarter of 1995, the Company purchased 30,000 shares
of its common stock for $305,000 at an average repurchase price of $10.16
per share. These repurchases were made to use in connection with the
Company's employee benefit plans and for other proper corporate purposes.
There remains 220,000 shares authorized by the Board of Directors for re-
purchase. The Company may purchase these shares from time to time in the
future, with purchase decisions to be dependent on market conditions and
other factors. Capital expenditures in the second quarter of 1995 amounted
to $779,000, of which the largest portion was for increased wood finishing
capacity for chair manufacturing operations. There are no major capital
expenditures planned for the remainder of 1995.
The Company's balance sheet strengthened with better inventory management
dropping short-term borrowings from December 31, 1994, by $3.5 million to
$5.0 million at June 30, 1995. Cash and cash equivalents rose by $745,000
to $2.4 million from $1.6 million.During the same period, shareholders'
equity increased by approximately $1.3 million to close with $50.0 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 June 30, 1995 increased 5.3 percent to
$42,352,000 from $40,208,000 in the comparable period last year, of which
approximately one percent was due to pricing with the remainder being from
improved product mix and increased volume driven in large part by con-
tinuing strength in the hotel refurbishing market. The more favorable
product mix and labor efficiencies obtained in the first quarter were
continued resulting in gross margin improvement to 21.9 percent for the
second quarter of 1995 compared to 20.7 percent for the prior year
second quarter. Net income grew 54.2 percent to $1,702,000, or 19 cents
per share, from $1,104,000, or 12 cents per share, last year. An
improvement as a percent of sales in selling, general and administrative
expenses, from 16.1 percent to 15.7 percent, resulted primarily as a
function of volume.
For the first half of 1995, earnings increased 60.2 percent to
$3,027,000, or 34 cents per share, compared with $1,889,000 or 21
cents per share the year before. Sales of $81,653,000 increased 4.2
percent from $78,330,000 for the first six months of 1994.
The backlog of unshipped orders for resumption of production after
July 1995 vacation shut-down was approximately $34.1 million, a record
high and 22% over the prior year.
<PAGE>
PART II - OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
At the Company's annual meeting of stockholders held May 2, 1995,
the following matters were voted:
Election of directors:
Name Vote For Vote Withheld
____ ________ _____________
Robert P. Coulter 7,384,860 54,774
Robert L. Haag 7,384,306 55,328
William B. Kaplan 7,385,260 54,374
Herbert L. Roth 7,384,306 55,328
Manfred Steinfeld 7,384,660 54,974
Paul N. Steinfeld 7,385,260 54,374
Trisha Wilson 7,361,358 78,276
Approval for Directors Stock Option Plan:
FOR: 7,282,876 AGAINST: 109,747 ABSTAIN: 47,011
Approval of independent auditors:
FOR: 7,424,212 AGAINST: 7,520 ABSTAIN: 7,902
No broker nonvotes were recorded.
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)
August 4, 1995 S/Robert P. Coulter
__________________________________
Robert P. Coulter
President and Director
(Principal Operating Officer)
August 4, 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> June-30-1995
<PERIOD-TYPE> 6-mos
<CASH> 2,378
<SECURITIES> 0
<RECEIVABLES> 24,964
<ALLOWANCES> 522
<INVENTORY> 29,703
<CURRENT-ASSETS> 59,290
<PP&E> 52,428
<DEPRECIATION> 22,970
<TOTAL-ASSETS> 90,305
<CURRENT-LIABILITIES> 29,371
<BONDS> 0
0
0
<COMMON> 588
<OTHER-SE> 49,376
<TOTAL-LIABILITY-AND-EQUITY> 90,305
<SALES> 81,653
<TOTAL-COSTS> 63,976
<OTHER-EXPENSES> 12,971
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 633
<INCOME-PRETAX> 4,078
<INCOME-TAX> 1,051
<INCOME-CONTINUING> 3,027
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,027
<EPS-PRIMARY> .34
<EPS-DILUTED> .34
</TABLE>
