FORM 11-K
FOR ANNUAL REPORTS OF EMPLOYEE STOCK PURCHASE, SAVINGS
AND SIMILAR PLANS PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1034
[X ] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
[ FEE REQUIRED]
For the fiscal year ended December 31, 1994
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
[NO FEE REQUIRED]
For the transition period from to
Commission file number 1-5197
A. Full title of the plan and address of the plan, if different from that of
the issurer below:
Plymouth Rubber Company Retirement Savings and Profit Sharing Plan and
Trust
B. Name of issurer of the securities held pursuant to the plan and the address
of its principal executive office:
Plymouth Rubber Company Inc. 104 Revere Street, Canton, Massachusetts
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To The Plan Administrator of Plymouth Rubber Company
Retirement Savings and Profit Sharing Plan And Trust
Canton, Massachusetts 02021
We have audited the accompanying statement of net assets available for plan
benefits of the Plymouth Rubber Company Retirement Savings and Profit Sharing
Plan and Trust as of December 31, 1994, and the related statements of changes
in net assets available for plan benefits for the year then ended. These
financial statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based
on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and signi-
ficant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our report dated January 5, 1995, we did not express an opinion on the net
assets for plan benefits and related statements of changes in net assets
available for plan benefits because of the following reasons: (1) The Plan
administrator instructed us not to perform any auditing procedures with
respect to the information provided by State Street Bank & Trust Company,
and (2) the Plan's financial statements were prepared on a comprehensive basis
of accounting other than generally accepted accounting principles. Accord-
ingly, our present opinion on the December 31, 1994 financial statements are
presented herein, is different from that expressed in our previous report.
In our opinion, the aforementioned financial statements present fairly, in
all material respects, the net assets available for the plan benefits of the
Plymouth Rubber Company Retirement Savings and Profit Sharing Plan and Trust
as of December 31, 1994, and the changes in its net assets available for plan
benefits for the year than ended, in conformity with generally accepted
accounting principles.
Morris & Morris, P.C.
Needham Heights, Massachusetts
November 27, 1995
<PAGE>
Plymouth Rubber Company Retirement Savings and
Profit Sharing Plan and Trust
[CAPTION]
Statement of Net Assets Available for Plan Benefits
December 31, 1994
<TABLE>
Assets
<S> <C>
Investments, at Market $ 2,404,853
Employer Contribution Receivable 220,675
Cash and Equivalents 552,357
Total Assets $ 3,177,885
Net Assets Available for Plan Benefits
Net Assets Available for Plan Benefits $ 3,177,885
</TABLE>
The accompanying notes and independent auditors' report
are an integral part of the financial statements.
Plymouth Rubber Company Retirement Savings and
Profit Sharing Plan and Trust
[CAPTION]
Statement of Changes in Net Assets Available for Plan Benefits
Year Ended December 31, 1994
<TABLE>
<S> <C>
Additions:
Employee Contributions and Loan Repayments $ 569,147
Employer Contributions 220,675
Interest Income 44,597
Dividend Income 23,887
Change in Unrealized Gains on Investments 16,703
Proceeds from Surrender of Insurance Policies 15,253
890,262
Deductions:
Benefits Paid $ 269,528
Administrative Services 24,802
Net Loss Realized upon Disposition of Investments 28,482
Employee Borrowings 63,093
Employee Transfers 2,096
388,001
Net Additions 502,261
Assets Available for Plan Benefits Beginning of Year 2,675,624
Assets Available for Plan Benefits End of Year $ 3,177,885
</TABLE>
The accompanying notes and independent auditors' report
are an integral part of the financial statements.
Plymouth Rubber Company Retirement Savings and
Profit Sharing Plan and Trust
[CAPTION]
Summary of Investments
December 31, 1994 December 31, 1993
ERISA ERISA
[S] [C] [C] [C] [C]
Value Market Value Market
Foreign Government
Obligations $ 59,616 $ 53,511 $ 56,631 $ 59,616
Corporate Bonds
and Debentures 321,628 301,060 214,593 217,085
Common Stocks 1,848,528 1,826,662 1,257,111 1,395,015
Party-in-Interest
Investments 158,378 223,620 111,652 158,378
Totals $2,388,150 $2,404,853 $1,639,987 $1,830,094
[/TABLE]
Plymouth Rubber Company Retirement Savings and
Profit Sharing Plan and Trust
Details of Investments
December 31, 1994
ERISA
Face Value Company Due Value Market
Foreign Government Obligations
$ 5,000 State of Israel
5.5% Dollar
Coupon Bonds 03/01/96 $ 4,600 $ 4,550
50,000 Ontario Prov.
CDA 8% 10/17/01 55,016 48,961
Totals $ 59,616 $ 53,511
Corporate Bonds and Debentures
$ 50,000 Anheuser Bush Co., Inc.
8.75% 07/15/95 $ 53,242 $ 50,523
50,000 Ford Holdings Co., Inc.
9.25% 07/15/97 56,234 51,172
25,000 General Motors Accept. Corp.
7.125% 06/01/99 24,706 23,496
50,000 Philip Morris Cos., Inc.
8.625% 03/01/99 56,336 50,188
13,098 sh. Strategic Active Management Bond
Fund for Employee Trusts 131,110 125,681
Totals $ 321,628 $ 301,060
Plymouth Rubber Company Retirement Savings and
Profit Sharing Plan and Trust
Details of Investments (Continued)
December 31, 1994
Common Stocks ERISA
Shares Company Value Market
500 Allied Signal $ 19,750 $ 17,000
700 American General Corp. 20,037 19,775
200 American International Group Inc. 17,550 19,600
300 American Telephone & Telegraph, Co. 15,750 15,075
400 Amsouth Bancorporation 12,500 10,300
250 Automatic Data Processing 13,813 14,625
400 Bristol Myers Squibb Co. 23,420 23,150
300 Eastman Kodak 13,500 14,325
300 Exxon Corp. 18,068 18,225
200 First Colony Corporation 5,075 4,475
450 General Electric Co. 22,468 22,950
632 GTE Corporation 22,120 19,197
350 Ingersoll Rand 13,388 11,025
250 Intel Corporation 15,500 15,969
500 May Department Stores 20,728 16,875
700 McDonalds Corp. 20,283 20,475
450 Merck & Co. 15,469 17,156
250 Mobil Corp. 20,806 21,063
400 Motorola Inc. 18,450 23,200
200 Pepsico, Inc. 8,175 7,250
400 Reuters Holdings 15,800 17,550
200 Royal Dutch Petroleum 22,120 21,550
700 Ryder System 18,550 15,400
350 Telefonos De Mexico SA 24,299 14,350
345 Texaco, Inc. 22,339 20,657
350 Toys R Us 14,306 10,719
400 U.S. Healthcare 15,367 16,500
250 Union Camp Corporation 11,906 11,781
375 V F Corporation 17,297 18,234
250 Warner Lambert 16.875 19,250
300 Weyerhaeuser Co. 13,388 11,250
600 WMX Technologies 16,260 15,675
1,000 Worthington Industries Inc., Co. 22,000 20,000
18,095 Matrix Stock Fund 1,065,507 1,066,763
14,698 Strategic Active Management Stock
Fund for Employee Trusts 215,664 215,273
Totals $1,848,528 $1826,662
Plymouth Rubber Company Retirement Savings and
Profit Sharing Plan and Trust
Details of Investments (Continued)
December 31, 1994
Party-in-Interest Investments
ERISA
Shares Company Value Market
14,621 Plymouth Rubber Co., Inc.
Class A $ 85,898 $ 122,450
12,080 Plymouth Rubber Co., Inc.
Class B 72,480 101,170
Total Party-in-Interest
Investments $ 158,378 $ 223,620
Plymouth Rubber Company Retirement Savings and
Profit Sharing Plan and Trust
Notes To Financial Statements
Year Ended December 31, 1994
A. Description of the Plan:
The following description of the Plymouth Rubber Company Retirement
Savings and Profit Sharing Plan and Trust (the Plan) is provided for
general information purposes only. Participants should refer to the Plan
Agreement for a more complete description of the Plan's provisions.
1. General Information
Effective December 1, 1989, Plymouth Rubber Company, Inc.( The
Company), as Plan sponsor, amended a trust which embodies a profit-
sharing plan for the Company. The Plan is a defined contribution
profit-sharing plan for the exclusive benefit of the employees of the
Company and their beneficiaries, enabling participants to save and
invest in accordance with the terms of the Plan. The Plan, as amended,
is stablished under provisions of Sections 401(a) and 401(k) of the
Internal Revenue Code and is subject to the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA), as amended.
Participants in the Plan may elect to participate in a tax-deferred
savings program offered under the Plan whereby contributions are made
through payroll deductions.
2. Administration
The Plan is administrated by the Company in accordance with the Plan
Agreement. Plan trustees consist of designated Company directors
and officers. The Plan's record keeper is Kimball, Akins & Bigwood.
The Plan's assets are held in trust by State Street Bank & Trust
Company. Expenses for record keeping and benefit distributions of
the Plan are paid by the Company.
3. Eligibility
An employee is eligible to participate in the Plan following the
completion of one year of continuous service with a minimum of 1,000
hours of service and attainment of age 21.
4. Contributions
Participants may contribute up to 15% of their annual before-tax
compensation as defined in the Plan Agreement. Before-tax contri-
butions are limited to the maximum 401(k) contribution permitted by
law. Contributions from the Company are discretionary and are limited
to the maximum amount deductible under the Internal Revenue Code.
Plymouth Rubber Company Retirement Savings and
Profit Sharing Plan and Trust
Notes To Financial Statements
Year Ended December 31, 1994
5. Vesting
A participant's vested interest in Company-discretionary contri-
butions, plus actual earnings thereon, is based upon years of service
to the Company as follows:
Vested
Years of Service Percentage
Less than three years 0%
3 years but less than 4 years 10
4 years but less than 5 years 20
5 years or more 100
A participant is always fully vested in his or her voluntary contri-
butions and earnings thereon.
6. Participant Loans
Participants may bo rrow amounts not to exceed the lesser of fifty
percent (50%) of the participants's vested account balance, or
$50,000, reduced by the highest outstanding loan balance during the
preceeding twelve (12) months. Participants may take up two loans in
a calendar year but may not have more than one loan outstanding at a
time. Repayment terms of loans are determined by each employee, but
generally may not exceed sixty (60) months, and bear a reasonable
rate of interest.
7. Distributions
Distributions are made to participants or their beneficiaries upon
death, retirement, disability, termination of employment or financial
hardship. If one of the proceeding events occur and the participants'
or their beneficiaries' account balance is in excess of certain
limitations, they may elect to have the Plan continue to administer
their account balance.
8. Plan Amendment and Termination
The Company plans to continue the Plan without interruption, but
reserves the right to terminate or amend the Plan. In the event that
the Company terminates the Plan, there shall be immediate and full
vesting for all participants.
Plymouth Rubber Company Retirement Savings and
Profit Sharing Plan and Trust
Notes To Financial Statements
Year Ended December 31, 1994
B Summary of Significant Account Accounting Policies:
1. Method of Accounting
The financial statements have been prepared using the accrual basis of
accounting.
Purchases and sales of investments securities are reflected on a trade-
date basis. Gains or losses on sale of investments are computed upon the
difference between net sales proceeds and ERISA value.
Investments at year end are reported at market value (ERISA value). ERISA
value for investments is determined by adjusting current year purchases or
prior years market value (ERISA value), to market value at the end of the
Plan year. ERISA value is then used as the basis for all transactions
for the following year.
In accordance with the policy of stating investments at market value, net
unrealized appreciation or depreciation for the year is reflected in the
Statement of Changes in Net Assets Available for the Plan Benefits.
2. Investment Valuation
The value of investments, other than cash and equivalents, was based on the
closing prices on December 31, 1994 as received from State Street Bank &
Trust Company.
3. Income Taxes
The Plan has received a favorable determination letter from the Internal
Revenue Service dated March 27, 1991, with respect to the tax-exempt status
of the Plan.
C. Contribution Due From Employer
The Company's Board of Directors voted to make discretionary contributions
on behalf of the Company, to the Plan in the amount of $220,675 for the
year ended December 31, 1994.
D. Cash and Equivalents
State Street Bank & Trust Co. $ 552,357
Plymouth Rubber Company Retirement Savings and
Profit Sharing Plan and Trust
Notes To Financial Statements
Year Ended December 31, 1994
E. Net (Losses) Realized Upon Disposition of Investments:
ERISA Sales Gain
Value Proceeds (Loss)
Common Stocks $ 367,932 $ 340,723 $ (27,209)
Corporate Bonds and
Debentures 51,273 50,000 (1,273)
Totals $ 419,205 $ 390,723 $ (28,482)
F. Purchase of Securities (Cost):
Common Stocks $ 821,444
Corporate Bonds and Debentures 155,816
Total $ 977,260
SIGNATURES
The Plan. Pursuant to the requirement of the Securities Exchange Act of 1934,
the trustees (or other persons who administer of the employee benefit plan)
have duly caused this annual report to be signed on behalf by the undersiged
thereunto duly authorized.
Plymouth Rubber Company Retirement
Savings and Profit Sharing Plan and Trust
Date November 27, 1995 Duane E. Wheeler
Duane E. Wheeler
Trustee
