UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended September 30, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________ to ___________
Commission File Number 0-21952
AMERICAN SAFETY RAZOR COMPANY
(Exact name of registrant as specified in its charter)
Delaware 54-1050207
(State of incorporation) (I.R.S. Employer Identification Number)
One Razor Blade Lane, P.O. Box 979, Verona, Virginia 24482-0979
---------------------------------------------------------------
(Address of principal executive offices, including zip code)
(540) 248-8000
-----------------------------
Registrant's telephone number
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 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 [ ]
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of October 18, 1996.
Class Outstanding at October 18, 1996
----- -------------------------------
Common Stock, $.01 Par Value 12,092,849
<PAGE>
AMERICAN SAFETY RAZOR COMPANY
Index
-----
Page Number
-----------
Part I. Financial Information
Item 1. Financial Statements
Condensed Consolidated Balance Sheets
September 30, 1996 and December 31, 1995 1
Condensed Consolidated Statements of Income
Three and nine months ended
September 30, 1996 and September 30, 1995 3
Condensed Consolidated Statements of Cash Flows
Nine months ended September 30, 1996 and September 30, 1995 4
Notes to Condensed Consolidated Financial Statements 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
Part II. Other Information
Item 1. Legal Proceedings 10
Item 6. Exhibits and Reports on Form 8-K 10
Signatures 11
<PAGE>
<TABLE>
AMERICAN SAFETY RAZOR COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
<CAPTION>
September 30, December 31,
1996 1995
------------- ------------
(Unaudited)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 1,498 $ 2,147
Trade receivables, net 39,763 33,100
Inventories 45,589 38,577
Deferred income taxes 3,953 3,498
Prepaid expenses 1,419 1,363
-------- --------
Total current assets 92,222 78,685
Property and equipment 93,119 75,747
Less accumulated depreciation (31,940) (26,169)
-------- --------
61,179 49,578
Intangible assets, net:
Goodwill 70,903 70,475
Other 5,269 5,921
-------- --------
76,172 76,396
Prepaid pension cost and other 3,691 3,604
-------- --------
Total assets $233,264 $208,263
-------- --------
-------- --------
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
AMERICAN SAFETY RAZOR COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
<CAPTION>
September 30, December 31,
1996 1995
------------- ------------
(Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C> <C>
Current liabilities:
Accounts payable $ 14,643 $ 10,956
Accrued expenses and other 18,456 17,926
Income taxes payable 1,135 713
Current maturities of long-term obligations 2,546 4,614
-------- --------
Total current liabilities 36,780 34,209
Long-term obligations 117,720 105,175
Retiree benefits and other 25,448 24,896
Deferred income taxes 13,174 13,085
Stockholders' equity:
Common Stock, $.01 par value, 25,000,000
shares authorized; 12,092,849 shares
issued and outstanding at
September 30, 1996 (11,502,477 at
December 31, 1995) 121 115
Class B Common Stock, $.01 par value,
590,372 shares issued and outstanding
at December 31, 1995 - 6
Additional capital 65,756 65,756
Deficit (24,678) (33,887)
Foreign currency translation (1,057) (1,092)
-------- --------
40,142 30,898
-------- --------
Total liabilities and stockholders' equity $233,264 $208,263
-------- --------
-------- --------
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
AMERICAN SAFETY RAZOR COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands except share data)
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1996 1995 1996 1995
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net sales $71,052 $61,438 $193,374 $170,826
Cost of sales 46,414 40,076 126,442 111,919
------- ------- -------- --------
Gross profit 24,638 21,362 66,932 58,907
Selling, general and
administrative expenses 14,416 12,029 41,111 36,178
Amortization of intangibles 610 598 1,816 1,749
Litigation settlement expense - - - 947
------- ------- -------- --------
Operating income 9,612 8,735 24,005 20,033
Interest expense 3,043 2,875 8,907 7,710
------- ------- -------- --------
Income before income taxes
and extraordinary item 6,569 5,860 15,098 12,323
Income taxes 2,477 2,280 5,889 4,930
------- ------- -------- --------
Income before
extraordinary item 4,092 3,580 9,209 7,393
Extraordinary charge for early
extinguishment of debt - (971) - (971)
------ ------ ------ ------
Net income $4,092 $2,609 $9,209 $6,422
------ ------ ------ ------
------ ------ ------ ------
Weighted average shares
outstanding 12,093,000 12,093,000 12,093,000 12,093,000
Earnings per share:
Income before
extraordinary item $.34 $.30 $.76 $.61
Extraordinary charge
for early extinguishment
of debt - (.08) - (.08)
---- ---- ---- ----
Net income $.34 $.22 $.76 $.53
---- ---- ---- ----
---- ---- ---- ----
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
AMERICAN SAFETY RAZOR COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)
<CAPTION>
Nine Months Ended
September 30,
1996 1995
-------- -------
<S> <C> <C>
Operating activities
Net income $9,209 $6,422
Adjustments to reconcile net income to net
cash provided by operating activities:
Extraordinary charge - 971
Depreciation and amortization 7,819 6,565
Amortization of financing costs 568 741
Retiree benefits and other 500 795
Deferred income taxes (366) 1,337
Changes in operating assets and
liabilities, net of effects
of Bond and ACCO acquisitions:
Trade receivables (3,072) (4,527)
Inventories (1,230) (2,436)
Prepaid expenses 279 (185)
Accounts payable 1,072 (899)
Accrued and other expenses (73) 1,672
Income taxes payable 422 (174)
------ ------
Net cash provided by operating activities 15,128 10,282
Investing activities
Capital expenditures (9,243) (9,394)
Purchase of Bond and ACCO, respectively,
net of cash acquired (16,628) (7,348)
Deferred loan fees and other (226) (4,370)
------- -------
Net cash used in investing activities (26,097) (21,112)
Financing activities
Proceeds from borrowings 20,318 125,795
Repayment of debt (9,998) (114,118)
------- --------
Net cash provided from financing activities 10,320 11,677
------- --------
Net (decrease) increase in cash and
cash equivalents (649) 847
Cash and cash equivalents, beginning of period 2,147 678
------- --------
Cash and cash equivalents, end of period $1,498 $1,525
------ ------
------ ------
See accompanying notes.
</TABLE>
<PAGE>
AMERICAN SAFETY RAZOR COMPANY
Notes to Condensed Consolidated Financial Statements (Unaudited)
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles
for interim financial information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of management,
all adjustments (consisting of only normal recurring accruals) considered
necessary for a fair presentation have been included. Operating results for
the three and nine month periods ended September 30, 1996, are not
necessarily indicative of the results that may be expected for the year
ended December 31, 1996. For further information, refer to the consolidated
financial statements and footnotes thereto included in the Registrant's
Annual Report on Form 10-K for the year ended December 31, 1995.
NOTE B - INVENTORIES
Classifications of inventories are as follows:
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
------------- ------------
(In thousands)
<S> <C> <C>
Raw materials $16,423 $16,070
Work-in-process 6,060 5,053
Finished goods 21,806 17,274
Operating supplies 2,790 2,166
------ ------
47,079 40,563
Excess of current cost
over LIFO inventory value 1,490 1,986
------- -------
$45,589 $38,577
------- -------
------- -------
</TABLE>
NOTE C - OTHER INFORMATION
The Company's federal income tax returns for 1989, 1990 and 1991 have been
examined by the IRS. In addition, the Company's federal income tax returns
for 1992, 1993 and 1994 are presently under examination by the IRS. The
Company acquired certain intangible assets at the time of acquisition of the
Company and of Ardell for $29 million, and to date the Company has claimed
federal income tax deductions of $29 million for the amortization of those
assets. In connection with such acquisitions, the Company also incurred
approximately $10 million of loan costs and certain other costs, and has
expensed certain of those costs and claimed amortization deductions with
respect to other such costs. During March 1995, the Company received a
revenue agent's report proposing adjustments to the value of the intangible
assets which value is substantially below the value assigned to such assets
by the Company, resulting in the disallowance of substantially all of the
Company's amortization deductions with respect to those assets. In
addition, the IRS has proposed adjustments disallowing substantially all of
the Company's deductions with respect to the loan costs and certain other
costs described above. The Company disagrees with such proposed
disallowances, and on May 15, 1995, the Company filed a protest with the IRS
with respect to such proposed disallowances. The Company is vigorously
contesting such proposed disallowances. The outcome cannot be predicted at
this time. The Company will continue to evaluate the potential impact on its
tax reserves for these issues. However, the Company believes that the
ultimate outcome of the above matters will not have a materially adverse
impact on the consolidated financial position or results of operations of
the Company.
On March 13, 1996, the remaining shares of Class B Common Stock outstanding
were converted into an equal number of shares of Common Stock. Upon such
conversion the Class B Common Stock ceased to be authorized.
Stock options outstanding during the three months and nine months ended
September 30, 1996 and 1995 did not have a material dilutive effect on
weighted average shares outstanding or earnings per share.
NOTE D - ACQUISITION OF BOND - AMERICA ISRAEL BLADES, LTD. AND A.I. BLADES,
INC.
On March 29, 1996, the Company purchased certain assets of Bond - America
Israel Blades, Ltd., and its wholly-owned U.S. subsidiary, A. I. Blades,
Inc. (collectively "Bond") for net consideration of approximately $16.6
million including estimated acquisition related expenses. The agreement
also provides for additional consideration of up to $4.0 million with
payments over a four year period based on achieving a specified level of
earnings during 1996, as defined. The acquisition was accounted for under
the purchase method of accounting and was financed by additional borrowings
of approximately $12.7 million under the Company's revolving credit facility
and internally generated funds.
Bond is engaged in the manufacture and distribution of private-brand and
value-brand shaving razors and blades. Its principal operations are located
in Nazareth Illit, Israel where it leases approximately 79,000 square feet
of manufacturing and warehouse facilities. Shortly after the acquisition,
the Company consolidated the Carlstadt, New Jersey operations of Bond into
its blade operations in Knoxville, Tennessee.
Pro forma combined results of operations of the Company as if the Bond
acquisition occurred on January 1, 1995 are not presented as the effects are
not material.
NOTE E - LONG TERM OBLIGATIONS
In connection with the March 29, 1996, acquisition of Bond, the Company
borrowed $12.7 million under its revolving credit facility. At September 30,
1996, the Company had utilized $13.8 million of its revolving credit
facility and had approximately $36.2 million available for future borrowings
under this facility.
On August 3, 1995, the Company sold $100.0 million aggregate principal
amount of 9 7/8% Series A Senior Notes due 2005 through a private placement.
In addition, the Company replaced its existing bank credit agreement with a
new bank credit agreement which permits borrowings of up to $50.0 million
and contains certain financial covenants. The Company utilized the net
proceeds received from the offering of $95.8 million (after the deduction of
discounts and commissions, fees and other expenses associated with the
offering and the new bank credit agreement), together with additional
borrowings of $3.9 million under its new revolving credit facility and
internally generated funds of $1.2 million to:
(In millions)
Repay bank credit agreement $ 90.3
Repay subordinated notes 10.0
Pay prepayment premium on subordinated notes 0.2
Pay accrued interest 0.4
------
$100.9
------
------
In connection with the repayment of its bank credit agreement and
subordinated notes, the Company wrote-off deferred financing costs and paid
a prepayment premium in the aggregate amount of approximately $1.6 million.
These costs have been presented as an extraordinary charge for early
extinguishment of debt of approximately $1.0 million (net of tax effect) in
the results of operations for the three months and nine months ended
September 30, 1995.
The Company filed a registration statement with the Securities and Exchange
Commission, which became effective on October 17, 1995, to offer to exchange
its 9 7/8% Series B Senior Notes due 2005 (the "New Notes") for any and all
of its outstanding 9 7/8% Series A Senior Notes due 2005 (the "Old Notes").
Effective November 16, 1995, the New Notes were exchanged for a like
principal amount of Old Notes. The exchange of the New Notes for the Old
Notes had no financial accounting impact.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
INTRODUCTION
The following discussion and analysis should be read in conjunction with the
consolidated financial statements and notes thereto included in this report
and the Registrant's Annual Report on Form 10-K for the year ended December
31, 1995. On March 29, 1996, the Company purchased certain assets of Bond -
America Israel Blades, Ltd. and its wholly-owned U.S. subsidiary, A. I.
Blades, Inc. (collectively "Bond"), a manufacturer of private-brand and
value-brand shaving razors and blades. Sales by Bond since its acquisition
of $7.5 million had an insignificant effect on net income.
Three Months Ended September 30, 1996 Compared to Three Months Ended
September 30, 1995
Net Sales. Net sales for the three months ended September 30, 1996 and 1995
were $71.1 million and $61.4 million, respectively, an increase of $9.7
million, or 15.6%. Sales by Bond contributed $4.0 million or 6.4% to the
increase. Net sales of the Company's shaving blades and razors, excluding
Bond, for the three months ended September 30, 1996 totaled $29.1 million, a
$2.6 million or 9.6% increase over net sales for the three months ended
September 30, 1995 of $26.5 million. Net sales of domestic branded shaving
products increased 28.1% benefiting primarily from several promotional
programs during the quarter and continued strength in the MBC trademark,
Lady MBC trademark and Burma Shave registered shaving system line of
products. Net sales of domestic private-brand shaving products increased
4.5% primarily reflecting continued growth in sales of the Company's MBC
trademark product and increased promotional support of products by
customers. Net sales of international shaving products decreased 1.3%
primarily reflecting lower sales in Latin America and Asia.
Net sales of bladed hand tools and blades for the three months ended
September 30, 1996 and 1995 were $10.2 million and $10.4 million,
respectively, a decrease of $0.2 million, or 1.8%. While sales of the
Company's branded blades and tools in retail markets continued to grow,
strong sales of certain commercial products during the Company's second
quarter adversely effected third quarter sales.
Net sales of industrial and specialty and medical blades for the three
months ended September 30, 1996 and 1995 were $4.3 million and $3.8 million,
respectively, an increase of $0.5 million, or 12.2%. Sales of industrial
and specialty products increased 2.8% due primarily to new product
introductions. Sales of medical products increased 25.0% due to new product
introductions and an expanding customer base.
Net sales of fiber and foot care products for the three months ended
September 30, 1996 and 1995 were $14.7 million and $13.9 million,
respectively, an increase of $0.8 million or 6.0%. The Company experienced
sales growth in its cotton balls, cotton pads, and tissues product lines.
Net sales of the Company's custom bar soap products for the three months
ended September 30, 1996 and 1995 were $8.8 million and $6.8 million,
respectively, an increase of $2.0 million or 29.5%. This increase primarily
reflects strong growth in sales of the Company's pharmaceutical/skin care
products.
Gross Profit. Gross profit increased $3.2 million to $24.6 million during
the three months ended September 30, 1996 from $21.4 million for the three
months ended September 30, 1995. As a percentage of net sales, gross profit
was 34.7% for the three months ended September 30, 1996 and 34.8% for the
three months ended September 30, 1995. Gross profit for the Company's
razors and blades segment for the three months ended September 30, 1996 and
1995 was 40.6% and 43.0% of net sales, respectively. This decrease was
primarily due to the lower margins earned on sales of Bond products. Gross
profit margins were also impacted by higher depreciation expense, related to
the Company's capacity expansion projects, which was more than offset by
lower production costs resulting from increased output from the Company's
Mexico operations. Fiber and foot care gross profit increased to 20.7% from
19.3% of net sales during the same period primarily reflecting lower
material costs. Custom bar soap's gross profit increased to 26.0% from
16.8% of net sales during the same period primarily reflecting reduced
manufacturing costs associated with the Company's capacity expansion
projects.
Operating and Other Expenses. Selling, general and administrative expenses
were 20.3% of net sales for the three months ended September 30, 1996
compared to 19.6% for the three months ended September 30, 1995. This 0.7%
of net sales increase primarily reflects an increase in promotional and
certain administrative expenses to support the Company's sales growth.
Amortization of goodwill and other intangible assets was substantially
unchanged at $0.6 million for the three months ended September 30, 1996 and
1995. Interest expense was also substantially unchanged at $3.0 million and
$2.9 million for the three months ended September 30, 1996 and 1995,
respectively.
Nine Months Ended September 30, 1996 Compared to Nine Months Ended September
30, 1995
Net Sales. Net sales for the nine months ended September 30, 1996 and 1995
were $193.4 million and $170.8 million, respectively, an increase of $22.6
million, or 13.2%. Sales by Bond contributed $7.5 million or 4.4% to the
increase. Net sales of the Company's shaving blades and razors, excluding
Bond, for the nine months ended September 30, 1996 totaled $77.0 million, a
5.4% increase over net sales for the nine months ended September 30, 1995 of
$73.0 million. Net sales of domestic branded shaving products increased 7.3%
primarily benefiting from increased promotional programs and continued
strength in the MBC trademark, Lady MBC trademark and Burma Shave registered
shaving system line of products. Net sales of international shaving products
increased 5.5% reflecting stronger sales primarily in Canada, Europe and
Asia. Net sales of domestic private-brand shaving products increased 3.1%
primarily benefiting from sales of the Company's MBC trademark product and
increased promotional support of products by customers.
Net sales of bladed hand tools and blades for the nine months ended
September 30, 1996 and 1995 were $30.2 million and $29.6 million,
respectively, an increase of $0.6 million, or 2.2%. This increase primarily
reflects an expanding customer base and increased product promotions.
Net sales of industrial and specialty and medical blades for the nine months
ended September 30, 1996 and 1995 were $12.6 million and $12.0 million,
respectively, an increase of $0.6 million, or 5.2%. Sales of industrial and
specialty products decreased 3.0% due primarily to inventory adjustments at
major original equipment manufacturers and other user customers during the
three months ended March 31, 1996. Sales of these products rebounded during
the second and third quarters of 1996. Sales of medical products increased
17.6% due to new product introductions and an expanding customer base.
Net sales of fiber and foot care products for the nine months ended
September 30, 1996 and 1995 were $41.9 million and $35.1 million,
respectively, an increase of $6.8 million or 19.3%. On a fully comparable
basis (including 1995 net sales of ACCO prior to its acquisition date of
$3.1 million), net sales increased $3.7 million or 9.7%. The Company
experienced sales growth across its product lines, particularly in cotton
balls, cotton pads, swabs, insoles and tissues.
Net sales of the Company's custom bar soap products for the nine months
ended September 30, 1996 and 1995 were $24.2 million and $21.1 million,
respectively, an increase of $3.1 million or 14.5%. This increase primarily
reflects the strong growth in sales of the Company's pharmaceutical/skin
care products.
Gross Profit. Gross profit increased $8.0 million to $66.9 million during
the nine months ended September 30, 1996 from $58.9 million for the nine
months ended September 30, 1995. As a percentage of net sales, gross profit
was 34.6% for the nine months ended September 30, 1996 and 34.5% for the
nine months ended September 30, 1995. Gross profit for the Company's razors
and blades segment for the nine months ended September 30, 1996 and 1995 was
41.7% and 42.1% of net sales, respectively. This decrease was primarily due
to the lower margins earned on sales of Bond products. Gross profit margins
were also impacted by higher depreciation expense, related to the Company's
capacity expansion projects, which was more than offset by lower production
costs resulting from increased output from the Company's Mexico operations.
Fiber and foot care gross profit increased to 19.9% from 18.5% of net sales
during the same period primarily reflecting reduced material costs, reduced
manufacturing costs resulting from the ongoing consolidation of
manufacturing operations and lower shipping costs. Custom bar soap's gross
profit increased to 22.6% from 19.5% of net sales during the same period
primarily reflecting reduced manufacturing costs associated with the
Company's capacity expansion projects.
Operating and Other Expenses. Selling, general and administrative expenses
were 21.3% of net sales for the nine months ended September 30, 1996
compared to 21.2% for the nine months ended September 30, 1995. The
litigation settlement expenses of $0.9 million, including legal fees
incurred during the three months ended June 30, 1995, relate to the AMMI
case which was settled in June, 1995.
Amortization of goodwill and other intangible assets was substantially
unchanged at $1.8 million and $1.7 million for the nine months ended
September 30, 1996 and 1995, respectively. Interest expense increased for
the nine months ended September 30, 1996 to $8.9 million from $7.7 million
for the nine months ended September 30, 1995 primarily reflecting the higher
interest rate resulting from the Company's debt offering in August 1995, and
from increased borrowings to finance the ACCO and Bond acquisitions.
Liquidity and Capital Resources
The Company's principal sources of funds are cash generated from operating
activities and borrowings under its revolving credit facility. Net cash
provided by operating activities amounted to $15.1 million and $10.3 million
for the nine months ended September 30, 1996 and 1995, respectively. The
increase of $4.8 million in net cash provided by operating activities for
the nine month period ended September 30, 1996 as compared to the nine month
period ended September 30, 1995 was due primarily to increased earnings and
the net effects of differences in the changes in the components of working
capital primarily trade receivables, inventories and accounts payable.
In connection with the March 29, 1996, acquisition of Bond, the Company
borrowed $12.7 million under its revolving credit facility. At September 30,
1996, the Company had utilized $13.8 million of its revolving credit
facility and had approximately $36.2 million available for future borrowings
under this facility.
On August 3, 1995, the Company sold $100.0 million aggregate principal
amount of 9 7/8% Series A Senior Notes due 2005 through a private placement.
In addition, the Company replaced its existing bank credit agreement with a
new bank credit agreement which permits borrowings of up to $50.0 million
and contains certain financial covenants. The Company utilized the net
proceeds received from the offering to repay its former bank credit
agreement and subordinated notes.
The Company filed a registration statement with the Securities and Exchange
Commission, which became effective on October 17, 1995, to offer to exchange
its 9 7/8% Series B Senior Notes due 2005 (the "New Notes") for any and all
of its outstanding 9 7/8% Series A Senior Notes due 2005 (the "Old Notes").
Effective November 16, 1995, the New Notes were exchanged for a like
principal amount of Old Notes. The exchange of the New Notes for the Old
Notes had no financial accounting impact.
Management believes that the Company's cash on hand, anticipated funds from
operations, and the amounts available to the Company under its revolving
credit facility will be sufficient to cover its working capital, capital
expenditures, debt service requirements and tax obligations as well as
support the Company's growth-oriented strategy for its existing business for
at least the next 12 months. The Company anticipates that funding of any
additional acquisitions will require additional borrowings under its
revolving credit facility. The Company intends to maintain and further
strengthen its financial condition and, in connection therewith, may from
time to time consider other possible transactions, including other capital
market transactions or disposition of businesses that no longer meet its
strategic objectives. The Company has no present plans in this regard.
<PAGE>
PART II, OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits: Exhibit 27 - Financial Data Schedule
b. Reports on Form 8-K: No reports on Form 8-K have been filed
during the quarter ended September 30, 1996.
<PAGE>
SIGNATURES
----------
Pursuant to the requirements 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.
AMERICAN SAFETY RAZOR COMPANY
October 22, 1996 By /s/William C. Weathersby
------------------------- --------------------------------
Date William C. Weathersby
President
October 22, 1996 By /s/Thomas G. Kasvin
------------------------- --------------------------------
Date Thomas G. Kasvin
Senior Vice President
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
financial statements included in the Form 10-Q of American Safety Razor Company
for the quarter ended September 30, 1996 and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 1498
<SECURITIES> 0
<RECEIVABLES> 39763
<ALLOWANCES> 0
<INVENTORY> 45589
<CURRENT-ASSETS> 92222
<PP&E> 93119
<DEPRECIATION> 31940
<TOTAL-ASSETS> 233264
<CURRENT-LIABILITIES> 36780
<BONDS> 117720
0
0
<COMMON> 121
<OTHER-SE> 40021
<TOTAL-LIABILITY-AND-EQUITY> 233264
<SALES> 193374
<TOTAL-REVENUES> 193374
<CGS> 126442
<TOTAL-COSTS> 126442
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 8907
<INCOME-PRETAX> 15098
<INCOME-TAX> 5889
<INCOME-CONTINUING> 9209
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 9209
<EPS-PRIMARY> .76
<EPS-DILUTED> .76
</TABLE>
