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, 1996
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 July 15, 1996, there were 8,758,534 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 Six Months Ended
June 30, 1996 and 1995
(Unaudited)
(Amounts in thousands, except per share data)
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
________ ________ ________ ________
<S> <C> <C>
Net sales $43,548 $42,352 $84,282 $81,653
Cost of goods sold 33,654 33,075 65,297 63,976
______ ______ ______ ______
Gross profit 9,894 9,277 18,985 17,677
Selling, general and
administrative
expenses 6,655 6,631 12,907 12,971
______ ______ ______ ______
3,239 2,646 6,078 4,706
Other deductions
(income):
Interest expense 273 296 554 633
Interest and dividend
income - - (2) (2)
Miscellaneous expense
(income) (23) 37 12 (3)
______ ______ ______ ______
250 333 564 628
______ ______ ______ ______
Income before income
taxes 2,989 2,313 5,514 4,078
______ ______ ______ ______
Income taxes:
Current 897 552 1,618 932
Deferred 60 59 119 119
______ ______ ______ ______
957 611 1,737 1,051
______ ______ ______ ______
Net income $ 2,032 $ 1,702 $ 3,777 $ 3,027
====== ====== ====== ======
Net income per share $ .23 $ .19 $ .43 $ .34
====== ====== ====== ======
Weighted average number
of common shares
outstanding 8,818 8,968 8,851 8,974
====== ====== ====== ======
<FN>
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<TABLE>
SHELBY WILLIAMS INDUSTRIES, INC.
Consolidated Balance Sheets
June 30, 1996 and December 31, 1995
(Unaudited)
(Amounts in thousands, except per share data)
<CAPTION>
June 30, 1996 December 31, 1995
_______________ _________________
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 2,984 $ 2,376
Accounts receivable, less
allowance for doubtful
accounts of $418 at
June 30, 1996 and
$423 at December 31,
1995 25,223 25,198
Inventories:
Raw materials 13,455 12,349
Work in process 4,295 4,598
Finished goods 12,379 11,488
______ ______
30,129 28,435
Prepaid expense 3,266 3,247
______ ______
Total current assets 61,602 59,256
Excess of cost over net assets
of acquired company 173 178
Property, plant and equipment
at cost:
Land and land improvements 2,901 2,876
Buildings and leasehold
improvements 25,549 25,408
Machinery and equipment 25,328 25,029
Construction in progress 68 -
______ ______
53,846 53,313
Less accumulated
depreciation and
amortization 25,379 24,082
______ ______
28,467 29,231
Other assets 1,220 1,242
______ ______
$91,462 $89,907
====== ======
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<TABLE>
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C> <C>
Current liabilities:
Short-term borrowings $ 4,700 $ 5,900
Accounts payable 14,023 10,425
Customer deposits on
orders in process 4,551 3,245
Accrued liabilities 4,220 6,787
Income taxes 232 828
Current portion of long-
term debt 55 55
______ ______
Total current liabilities 27,781 27,240
Long-term debt 8,812 8,840
Deferred income taxes 2,222 2,103
Stockholder's equity:
Common stock, $.05 par value;
authorized 30,000 shares;
issued 11,779 shares
(1995-11,779) 589 589
Capital in excess of par value 7,855 7,855
Retained earnings 65,935 63,398
Pension liability adjustment (908) (908)
______ ______
73,471 70,934
Less common stock held in
treasury; 3,021 shares
at cost (1995-2,879) 20,824 19,210
______ ______
Total stockholders' equity 52,647 51,724
______ ______
$91,462 $89,907
====== ======
<FN>
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<TABLE>
SHELBY WILLIAMS INDUSTRIES, INC.
Consolidated Statements of Cash Flows
Six Months Ended June 30, 1996 and 1995
(Unaudited)
(Amounts in thousands)
<CAPTION>
1996 1995
___________________________
<S> <C> <C>
Cash flows from operating activities:
Net income $3,777 $3,027
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amoritzation 1,395 1,431
Provision for losses on accounts
receivable 31 149
Change in assets and liabilities:
Accounts receivable (56) (467)
Inventories (1,694) (1,241)
Prepaid expenses (19) 93
Accounts payable and accrued
liabilities 2,337 3,201
Income taxes payable (596) 683
Increase in deferred taxes 119 119
Other 22 6
_____ _____
Net cash provided by operating
activities 5,316 7,001
_____ _____
Cash flows from investing activities:
Proceeds from disposal of property,
plant and equipment 5 93
Capital expenditures (631) (1,104)
_____ _____
Net cash used by investing activities (626) (1,011)
_____ _____
Cash flows from financing activities:
Net repayment of short-term
borrowings (1,200) (3,500)
Principal payments of long-term debt (28) (24)
Sale of common stock under stock
option plan - 23
Purchase of common stock for the
treasury (1,614) (485)
Dividends declared and paid (1,240) (1,259)
_____ _____
Net cash used by financing activities (4,082) (5,245)
_____ _____
Net increase in cash and cash
equivalents 608 745
Cash and cash equivalents at beginning
of period 2,376 1,633
_____ _____
Cash and cash equivalents at end of
period $2,984 $2,378
===== =====
Supplemental cash flow information:
Cash paid during the period for:
Interest $ 553 $ 636
Income taxes 1,434 249
_____ _____
$1,987 $ 885
===== =====
<FN>
</TABLE>
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SHELBY WILLIAMS INDUSTRIES, INC.
[PERIOD] June 30, 1996
Item 1. Financial Statements
See attached unaudited statements as follows:
Consolidated Statements of Income for three months and for
six months ended June 30, 1996 and 1995.
Consoldiated Balance Sheets at June 30, 1996 and December 31,
1995.
Consolidated Statements of Cash Flows for six months ended
June 30, 1996 and 1995.
Item 2. Managements' Discussion and Analysis of Financial Condition
and Results of Operations
Material Changes in Financial Condition
During the second quarter of 1996, the Company purchased 95,000 shares
of its common stock for $1.1 million at an average repurchase price of $11.50
per share. These repurchases were made to use in connection with the
Company's employee benefit plans and for other proper corporate purposes.
On July 10, 1996, the Board of Directors authorized repurchase of an
additional 300,000 shares. 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. There were no major capital expenditures
during the quarter and none are planned for the remainder of 1996.
During the first six months of 1996, the Company reduced short-term
borrowings by $1.2 million to $4.7 million at June 30, 1996, while it also
repurchased $1.6 million in stock for the treasury. Stockholders' equity
per share of $6.01, was up 7.7 percent from $5.58 per share, a year earlier.
The Company's current ratio at June 30, 1996 was a conservative 2.2-to-1.
Material Changes in Results of Operations
Sales for the quarter ended June 30, 1996 increased 2.8 percent to
$43,548,000 from $42,352,000 in the comparable period last year,
due to increased volume driven in large part by continuing release of
pent-up demand in the hotel refurbishing sector. A more profitable
product mix and ongoing improvements in operating efficiencies resulted in
gross margin improvement to 22.7 percent for the second quarter of 1996
compared to 21.9 percent for the prior year second quarter. Net income
grew 19.4 percent to $2,032,000, or 23 cents per share, from $1,702,000, or
19 cents per share, last year. An improvement as a percent of sales in
selling, general and administrative expenses, from 15.7 percent to 15.3
percent, resulted primarily as a function of volume.
For the first half of 1996, earnings increased 24.8 percent to
$3,777,000, or 43 cents per share, compared with $3,027,000 or 34
cents per share the year before. Sales of $84,282,000 increased 3.2
percent from $81,653,000 for the first six months of 1995.
At July 5, 1996, the end of one-week vacation shut-down, the Company's
backlog of unshipped orders for the beginning of July 1996 production was
approximately $36.8 million, a record high and an eight percent increase
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 7, 1996,
the following matters were voted:
Election of directors:
Name Vote For Vote Withheld
____ ________ _____________
Robert P. Coulter 8,196,341 25,044
Robert L. Haag 8,205,382 16,003
William B. Kaplan 8,205,546 15,839
Douglas A. Parker 8,205,546 15,839
Herbert L. Roth 8,195,814 25,541
Manfred Steinfeld 8,196,081 25,304
Paul N. Steinfeld 8,196,341 25,044
Trisha Wilson 8,206,858 14,527
Approval of independent auditors:
FOR: 8,215,398 AGAINST: 3,674 ABSTAIN: 2,313
No broker non-votes 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)
July 15, 1996 S/Robert P. Coulter
__________________________________
Robert P. Coulter
President and Director
(Principal Operating Officer)
July 15, 1996 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-31-1995
<PERIOD-END> June-30-1996
<PERIOD-TYPE> 6-mos
<CASH> 2,984
<SECURITIES> 0
<RECEIVABLES> 25,641
<ALLOWANCES> 418
<INVENTORY> 30,129
<CURRENT-ASSETS> 61,602
<PP&E> 53,846
<DEPRECIATION> 25,379
<TOTAL-ASSETS> 91,462
<CURRENT-LIABILITIES> 27,781
<BONDS> 0
0
0
<COMMON> 589
<OTHER-SE> 52,058
<TOTAL-LIABILITY-AND-EQUITY> 91,462
<SALES> 84,282
<TOTAL-COSTS> 65,297
<OTHER-EXPENSES> 12,907
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 554
<INCOME-PRETAX> 5,514
<INCOME-TAX> 1,737
<INCOME-CONTINUING> 3,777
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,777
<EPS-PRIMARY> .43
<EPS-DILUTED> .43
</TABLE>
