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, 1995
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> 1
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, 1995, and the related statement 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 significant 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 opinion, the aforementioned financial statements present fairly, in all
material respects, the net assets available for plan benefits of the Plymouth
Rubber Company Retirement Savings and Profit Sharing Plan and Trust as of
December 31, 1995, and the changes in its net assets available for plan benefits
for the years then ended, in conformity with generally accepted accounting
principles.
Morris & Morris, P.C.
Needham Heights, Massachusetts
May 30, 1996
<PAGE> 2
<TABLE>
PLYMOUTH RUBBER COMPANY
RETIREMENT SAVINGS AND PROFIT SHARING
PLAN AND TRUST
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
<CAPTION>
December 31, 1995
ASSETS
<S> <C>
Investments, at Market $ 3,568,490
Employer Contribution Receivable 183,575
Participant Loan Fund 190,830
Cash and Equivalents 684,170
TOTAL ASSETS $ 4,627,065
NET ASSETS AVAILABLE FOR PLAN BENEFITS
NET ASSETS AVAILABLE FOR PLAN BENEFITS $ 4,627,065
</TABLE>
The accompanying notes and independent auditors' report
are an integral part of the financial statements.
2
<PAGE> 3
<TABLE>
PLYMOUTH RUBBER COMPANY
RETIREMENT SAVINGS AND PROFIT SHARING
PLAN AND TRUST
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
<CAPTION>
Year Ended December 31, 1995
<S>
ADDITIONS:
<C>
Change in Unrealized Gains on Investments $ 682,487
Employee Contributions 601,256
Employer Contributions 183,575
Interest Income 65,703
Net Realized Gain Upon Disposition of Investments 34,608
Dividend Income 34,283
1,601,912
DEDUCTIONS:
Benefits Paid 176,637
Administrative Services 31,652
Employee Transfers 2,135
210,424
Net Additions 1,391,488
ASSETS AVAILABLE FOR PLAN BENEFITS,
Beginning of Year 3,235,577
ASSETS AVAILABLE FOR PLAN BENEFITS,
End of Year $ 4,627,065
</TABLE>
The accompanying notes and independent auditors' report
are an integral part of the financial statements.
3
<PAGE> 4
<TABLE>
PLYMOUTH RUBBER COMPANY
RETIREMENT SAVINGS AND PROFIT SHARING
PLAN AND TRUST
SUMMARY OF INVESTMENTS
<CAPTION>
December 31, 1995 December 31, 1994
ERISA ERISA
Value Market Value Market
<S> <C> <C> <C> <C>
U.S. Government
Obligations $ - $ - $ - $ -
Foreign Government
Obligations 53,511 60,063 59,616 53,511
Corporate Bonds
and Debentures 395,463 417,804 321,628 301,060
Common Stocks 2,213,409 2,795,085 1,848,528 1,826,662
Party-in-Interest
Investments 223,620 295,538 158,378 223,620
TOTALS $2,886,003 $3,568,490 $2,388,150 $2,404,853
</TABLE>
4
<PAGE> 5
<TABLE>
PLYMOUTH RUBBER COMPANY
RETIREMENT SAVINGS AND PROFIT SHARING
PLAN AND TRUST
DETAIL OF INVESTMENTS
<CAPTION>
December 31, 1995
ERISA
Face Value Company Due Value Market
<S> <C> <C>
FOREIGN GOVERNMENT OBLIGATIONS
$ 5,000 State of Israel
5.5% Dollar
Coupon Bonds 03/01/96 $ 4,550 $ 4,875
50,000 Ontario Prov.
CDA 8% 10/17/01 48,961 55,188
TOTALS $ 53,511 $ 60,063
CORPORATE BONDS AND DEBENTURES
$ 50,000 Ford Holdings Co., Inc.
9.25% 07/15/97 $ 51,172 $ 52,695
25,000 General Motors Accept. Corp.
7.125% 06/01/99 23,496 26,004
50,000 Philip Morris Cos., Inc.
8.625% 03/01/99 50,188 53,898
50,000 Texas Utilities Elec. Co.
1st Mtg & Col
6.75% 03/01/2003 50,196 51,289
50,000 Nationsbank Corp.
6.875% 02/15/2005 50,249 52,094
17,463 sh. Strategic Active Management
Bond Fund for Employee Trusts 170,162 181,824
TOTALS $ 395,463 $ 417,804
</TABLE>
5
<PAGE> 6
<TABLE>
PLYMOUTH RUBBER COMPANY
RETIREMENT SAVINGS AND PROFIT SHARING
PLAN AND TRUST
DETAIL OF INVESTMENTS (Continued)
<CAPTION>
December 31, 1995
COMMON STOCK
ERISA
Shares Company Value Market
<S> <C> <C>
500 Allied Signal $ 17,000 $ 23,750
600 American General Corp. 16,950 20,925
200 American International Group, Inc. 13,067 18,500
300 American Telephone & Telegraph, Co. 15,075 19,425
400 Amsouth Bancorporation 10,300 16,150
250 Automatic Data Processing 14,625 18,563
400 Bristol Myers Squibb Co. 23,150 34,350
300 Eastman Kodak 14,325 20,100
200 Exxon Corp. 12,150 16,100
350 General Electric Co. 17,850 25,200
632 GTE Corporation 19,197 27,729
300 Intel Corporation 9,581 17,025
500 May Department Stores 16,875 21,063
700 McDonalds Corp. 20,475 31,588
450 Merck & Co. 17,156 29,531
200 Mobil Corp. 16,850 22,350
300 Motorola Inc. 17,400 17,100
200 Pepsico, Inc. 7,250 11,175
400 Reuters Holdings 17,550 22,050
200 Royal Dutch Petroleum 21,550 28,225
375 V F Corporation 18,234 19,781
250 Warner Lambert 19,250 24,281
1,000 Worthington Industries Inc., Co. 20,000 20,811
23,659 Matrix Stock Fund 1,448,413 1,821,904
25,186 Strategic Active Management
Stock Fund for Employee Trusts 389,136 467,409
TOTALS $2,213,409 $2,795,085
</TABLE>
6
<PAGE> 7
<TABLE>
PLYMOUTH RUBBER COMPANY
RETIREMENT SAVINGS AND PROFIT SHARING
PLAN AND TRUST
DETAIL OF INVESTMENTS (Continued)
<CAPTION> December 31, 1995
PARTY-IN-INTEREST INVESTMENTS
ERISA
Value Market
<S> <C> <C>
14,621 Plymouth Rubber Co., Inc. -
Class A $ 122,450 $ 148,038
14,420 Plymouth Rubber Co., Inc. -
Class B 101,170 147,500
Total Party-In-Interest
Investments $ 223,620 $ 295,538
</TABLE>
7
<PAGE> 8
PLYMOUTH RUBBER COMPANY
RETIREMENT SAVINGS AND PROFIT SHARING
PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 1995
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 benefi-
ciaries, enabling participants to save and invest in accordance with the
terms of the Plan. The Plan, as amended, is established under provisions
of Section 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. Trustees consist of designated Company directors and officers.
The Plan's recordkeeper is Kimball, Akins and 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 upon the completion of
one year of continuous service with a minimum of 1,000 hours of service and
attainment of age 21.
8
<PAGE> 9
PLYMOUTH RUBBER COMPANY
RETIREMENT SAVINGS AND PROFIT SHARING
PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 1995
A. DESCRIPTION OF THE PLAN (Continued):
4. Contributions
Participants may contribute up to 15% of their annual before-tax compensa-
tion as defined in the Plan Agreement. Before-tax contributions 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.
5. Vesting
A participant's vested interest in Company-discretionary contributions,
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
contributions and earnings thereon.
6. Participant Loans
Participants may borrow amounts not to exceed the lesser of fifty percent
(50%) of the participant's vested account balance, or $50,000, reduced by
the highest outstanding loan balance during the preceeding twelve (12)
months. Participants may take up to two loans in a calendar year, but
may not have more than one loan outstanding at a time. Repayment terms of
the loans are determined by each employee, but generally may not exceed
sixty (60) months, and bear a reasonable rate of interest.
9
<PAGE> 10
PLYMOUTH RUBBER COMPANY
RETIREMENT SAVINGS AND PROFIT SHARING
PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 1995
A. DESCRIPTION OF THE PLAN (Continued):
7. Distributions
Distributions are made to participants or their beneficiaries upon
death, retirement, disability, termination of employment or financial
hardship. If one of the preceeding events occur and the participants'
or their beneficiaries' account balance is in excess of certain limita-
tions, 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 re-
serves 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.
B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1. Method of Accounting
The financial statements have been prepared using the accrual basis of
accounting.
Purchases and sales of investment securities are reflected on a trade-
date basis. Gain or loss on sale of investments is 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 year 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.
10
<PAGE> 11
PLYMOUTH RUBBER COMPANY
RETIREMENT SAVINGS AND PROFIT SHARING
PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 1995
B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Continued)
1. Method of Accounting (Continued)
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 Plan Benefits.
2. Investment Valuation
The value of investments, other than cash and equivalents, was based on the
closing prices on December 31, 1995 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 $183,575 for the year
ended December 31, 1995.
D. CASH AND EQUIVALENTS:
State Street Bank & Trust Co. $ 684,170
E. PARTICIPANT LOAN FUND:
Balance, beginning of year $ 57,692
Plus: loans issued 185,899
Less: loan repayments (52,761)
Balance, end of year $ 190,830
Interest income earned on employee fund loans for the year ended December
31, 1995 was $10,026, and is included in interest income.
11
<PAGE> 12
PLYMOUTH RUBBER COMPANY
RETIREMENT SAVINGS AND PROFIT SHARING
PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 1995
F. NET (LOSSES) REALIZED UPON DISPOSITION OF INVESTMENTS:
ERISA Sale Gain
Value Proceeds (Loss)
Common Stocks $ 258,670 $ 293,173 $ 34,503
Corporate Bonds and
Debentures 69,866 69,971 105
TOTALS $ 328,536 $ 363,144 $ 34,608
G. PURCHASES OF SECURITIES (COST):
Common Stocks $ 645,417
Corporate Bonds and
Debentures 164,269
TOTAL $ 809,686
12
<PAGE> 13
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 undersigned
thereunto duly authorized.
Plymouth Rubber Company Retirement
Savings and Profit Sharing Plan and Trust
Date: May 30, 1996 Duane E. Wheeler
Duane E. Wheeler
Trustee
