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Previous: REAL AMERICAN PROPERTIES, NT 10-Q, 1995-05-15 |
Next: MCNEIL REAL ESTATE FUND XXII L P, 10-Q, 1995-05-15 |
<PAGE>
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 quarterly period ended April 1, 1995
-------------
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 1-8884
-------------
BUSH INDUSTRIES, INC.
----------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 16-0837346
------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
Incorporation of organization) Identification No.)
One Mason Drive
P.O. Box 460
Jamestown, New York 14702-0460
-----------------------------------------------------------
(Address of principal executive offices)
(Zip Code)
(716) 665-2000
-----------------------------------------------------------
(Registrant's telephone number, including area code)
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
------- -------
Number of shares of Common Stock outstanding as of April 1, 1995: 6,272,678
shares of Class A Common Stock and 2,570,247 shares of Class B Common Stock.
<PAGE>
BUSH INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
---------------------------
<TABLE>
<CAPTION>
APRIL 1, DECEMBER 31,
1995 1994
---------- ------------
(Unaudited)
(In thousands)
<S> <C> <C>
ASSETS
- ------
Current Assets:
Cash $ 5,231 $ 4,151
Accounts receivable 22,023 27,967
Inventories 28,600 28,865
Prepaid expenses and other current assets 3,155 3,729
------ ------
Total Current Assets 59,009 64,712
Property, Plant and Equipment, Net 34,349 34,417
Other Assets 1,868 1,829
----- -----
TOTAL ASSETS $ 95,226 $ 100,958
====== =======
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
Current Liabilities:
Notes payable $ 0 $ 2,595
Accounts payable 5,474 9,431
Income taxes 1,896 186
Other accrued liabilities 11,951 14,436
Current portion of long-term debt 3,460 3,643
----- -----
Total Current Liabilities 22,781 30,291
Deferred Income Taxes 1,588 1,628
Long-term Debt 16,067 16,774
Stockholders' Equity:
Common Stock:
Class A, $.10 par, 20,000,000 shares authorized,
6,272,678 and 6,264,710 shares issued 627 626
Class B, $.10 par, 6,000,000 shares authorized,
2,570,247 shares issued 257 257
Paid-in capital 6,826 6,714
Retained earnings 47,080 44,668
------ ------
Total Stockholders' Equity 54,790 52,265
------ ------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 95,226 $ 100,958
====== =======
</TABLE>
See notes to consolidated financial statements.
2
<PAGE>
BUSH INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
-----------------------------------
(Unaudited)
<TABLE>
<CAPTION>
THIRTEEN WEEKS ENDED
-----------------------
APRIL 1, APRIL 2,
1995 1994
-------- --------
(In thousands except shares
and per share data)
<S> <C> <C>
Net Sales $ 50,173 $ 51,014
Costs and Expenses:
Cost of sales 35,283 35,616
Selling, general and administrative 9,970 10,501
Interest 566 321
------ ------
45,819 46,438
Earnings Before Income Taxes 4,354 4,576
Income Taxes 1,721 1,831
----- -----
Net Earnings $ 2,633 $ 2,745
===== =====
Earnings per Share $ 0.30 $ 0.30
==== ====
Weighted Average Shares Outstanding 8,869,356 9,299,623
</TABLE>
The April 2, 1994 earnings per share and the number of weighted average Class A
and Class B shares of Common Stock outstanding have been adjusted to reflect the
5-for-4 stock split effectuated in the form of a twenty five percent dividend
paid on January 20, 1995 to stockholders of record as of January 6, 1995.
See notes to consolidated financial statements.
3
<PAGE>
BUSH INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
------------------------------------
(Unaudited)
<TABLE>
<CAPTION>
THIRTEEN WEEKS ENDED
--------------------
April 1, April 2,
1995 1994
-------- --------
(In thousands)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
- -------------------------------------
Net earnings $ 2,633 $ 2,745
Adjustment to reconcile:
Depreciation and amortization 1,529 1,383
Deferred income taxes (138) (92)
Change in assets and liabilities affecting cash flows:
Accounts receivable 5,944 (6,351)
Inventories 265 (5,080)
Prepaid expenses and other current assets 672 459
Accounts payable (3,957) 3,153
Income taxes 1,719 1,420
Other accrued liabilities (2,485) 1,075
------- -------
Net cash flow provided by (used in) operating activities 6,182 (1,288)
CASH FLOWS FROM INVESTING ACTIVITIES:
- -------------------------------------
Capital expenditures (1,399) (1,959)
Increase in other assets (101) (89)
------- -------
Net cash used in investing activities (1,500) (2,048)
CASH FLOWS FROM FINANCING ACTIVITIES:
- -------------------------------------
Net pay down of line of credit (2,595) 0
Repayment of long-term debt (890) (1,536)
Exercise of stock options by employees 104 64
Dividends paid (221) (141)
------- -------
Net cash used in financing activities (3,602) (1,613)
------- -------
NET INCREASE (DECREASE) IN CASH 1,080 (4,949)
CASH AT BEGINNING OF PERIOD 4,151 9,381
----- -----
CASH AT END OF PERIOD $ 5,231 $ 4,432
===== =====
</TABLE>
See notes to consolidated financial statements.
4
<PAGE>
BUSH INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
Thirteen weeks ended April 1, 1995
1. The accounting policies used in preparing these statements are the same as
those used in preparing the Company's consolidated financial statements for
the year ended December 31, 1994. These consolidated financial statements
should be read in conjunction with the consolidated financial statements
and notes thereto included in the Company's annual report to stockholders
for the year ended December 31, 1994.
The foregoing financial information reflects all adjustments which are, in
the opinion of management, of normal recurring nature and necessary for a
fair presentation. The interim results are not necessarily indicative of
the results which may be expected for a full year.
2. Inventories consist of the following:
<TABLE>
<CAPTION>
APRIL 1, DECEMBER 31,
1995 1994
-------- ------------
(In thousands)
<S> <C> <C>
Raw material $ 7,191 $ 7,403
Work in progress 2,712 3,598
Finished goods 18,697 17,864
------ ------
$ 28,600 $ 28,865
====== ======
</TABLE>
5
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
- ------- ---------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------
RESULTS OF OPERATIONS:
- ----------------------
First quarter sales for the 13 week period ended April 1, 1995 were
$50,173,000. This represented a decrease of $841,000, or approximately 1.6%,
compared to net sales of $51,014,000 for the 13 week period ended April 2, 1994.
The decrease in net sales reflects the widely reported general softness at the
retail level and a temporary over-inventory position at several key accounts.
Cost of sales decreased $333,000 for the 13 week period ended April 1, 1995,
compared to the 13 week period ended April 2, 1994. Cost of sales as an
approximate percentage of net sales increased by 0.5% from 69.8% in the first
quarter of 1994 to 70.3% in the first quarter of 1995, and correspondingly gross
profit as an approximate percentage of net sales decreased by 0.5% from 30.2% in
the first quarter of 1994 to 29.7% in the first quarter of 1995. The decrease in
cost of sales was primarily due to lower sales volumes, partially offset by an
increase in cost of sales as a percentage of net sales. The cost of sales as a
percentage of net sales and the corresponding gross margin percentage were
negatively impacted by continuing increases in the cost of raw materials,
partially offset by manufacturing performance improvements.
Selling, general and administrative expenses decreased $531,000 for the 13
week period ended April 1, 1995, compared to the 13 week period ended April 2,
1994. Selling, general and administrative expenses as an approximate percentage
of net sales declined by 0.7% from 20.6% in the first quarter of 1994 to 19.9%
in the first quarter of 1995. The decrease in selling, general and
administrative expenses, both in dollars and as a percentage of net sales, was
primarily a result of lower operating costs and decreases in variable selling
expenses such as commissions, marketing and promotional incentives due to lower
sales volume and customer mix.
Interest expense for the 13 week period ended April 1, 1995 increased to
$566,000 (or approximately 1.1% of net sales) from $321,000 (or approximately
0.6% of net sales) for the period ended April 2, 1994. The increase in interest
expense was primarily due to increases in the prime rate & LIBOR and an increase
in average debt.
LIQUIDITY AND CAPITAL RESOURCES:
- --------------------------------
The Company believes that current unused balances under existing credit
agreements, along with net cash flow generated from operating activities, will
be adequate to fund the Company's operations in 1995, including capital
expenditures for 1995 which are currently forecasted in the $20.0 to $25.0
million range, depending on future sales demand. Capital expenditures in 1995
include the first phase of a two phase expansion program which will ultimately
include a new one million square foot manufacturing and distribution facility.
The first phase of the project, the construction of a 500,000 square foot
building, is scheduled for completion late in 1995, and will replace the leased
distribution center that the Company currently operates in Saybrook, Ohio.
6
<PAGE>
The Company has a revolving line of credit with a maximum loan limit of
$45,000,000. Advances are based on an asset-based lending formula applied to
eligible accounts receivable and inventories. On April 1, 1995, this line had a
credit availability of $36,118,000 and the Company had borrowed $6,902,000 as of
that date. The entire $6,902,000 was classified as long term debt. The line of
credit agreement provides for various annual minimum working capital, tangible
net worth and inventory turn requirements, limits certain capital expenditures
and new leases, restricts the acquisition of treasury stock, and limits the
payment of dividends to current levels. The Company is in compliance with all of
these requirements.
7
<PAGE>
Part II. OTHER INFORMATION
------------------------------
ITEM 6. EXHIBITS AND REPORTS ON 8-K
- ------- ---------------------------
(a) Exhibits: None
(b) Reports on Form 8-K:
No reports on Form 8-K have been filed during the quarter (13
weeks) ended April 1, 1995.
8
<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.
BUSH INDUSTRIES, INC.
-----------------------------
(Registrant)
Date: May 10, 1995 By: /s/Robert L. Ayres
-------------------- -----------------------------
(Signature)
Robert L. Ayres
Executive Vice President,
Chief Operating Officer
and Chief Financial Officer
9
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM BUSH
INDUSTRIES FORM 10-Q FOR THE PERIOD ENDED APRIL 01, 1995 AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000758604
<NAME> BUSH INDUSTRIES, INC.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-30-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> APR-01-1995
<CASH> 5,231
<SECURITIES> 0
<RECEIVABLES> 22,645
<ALLOWANCES> 622
<INVENTORY> 28,600
<CURRENT-ASSETS> 59,009
<PP&E> 66,235
<DEPRECIATION> 31,886
<TOTAL-ASSETS> 95,226
<CURRENT-LIABILITIES> 22,781
<BONDS> 16,067
<COMMON> 884
0
0
<OTHER-SE> 53,906
<TOTAL-LIABILITY-AND-EQUITY> 95,226
<SALES> 50,173
<TOTAL-REVENUES> 50,173
<CGS> 35,283
<TOTAL-COSTS> 35,283
<OTHER-EXPENSES> 9,940
<LOSS-PROVISION> 30
<INTEREST-EXPENSE> 566
<INCOME-PRETAX> 4,354
<INCOME-TAX> 1,721
<INCOME-CONTINUING> 2,633
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,633
<EPS-PRIMARY> .30
<EPS-DILUTED> .30
</TABLE>
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