SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended May 29, 1998 Commission File Number 1-5197
------------------- --------
Plymouth Rubber Company, Inc.
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(Exact name of registrant as specified in its charter)
Massachusetts 04-1733970
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
104 Revere Street, Massachusetts 02021
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(Address of principal executive offices) (Zip Code)
(781) 828-0220
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Registrant's telephone number, including area code
Not Applicable
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(Former name, former address, and former fiscal year, if changed since last
report).
Indicate by checkmark 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 receding 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 the close of the period covered by
this report.
Class A common stock, par value $1 - 810,586
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Class B common stock, par value $1 - 1,263,464
- -----------------------------------------------
PLYMOUTH RUBBER COMPANY, INC.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements:
--------------------- Page No.
Consolidated Statement of Operations
and Retained Earnings (Deficit) . . . . . . . 2
Consolidated Balance Sheet . . . . . . . . . . 3
Consolidated Statement of Cash Flows . . . . . 4
Notes To Consolidated Financial Statements . . 5-9
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations . 10-12
PART II OTHER INFORMATION . . . . . . . . . . . . . . . . . . . 13
1
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
<CAPTION>
PLYMOUTH RUBBER COMPANY, INC.
CONSOLIDATED STATEMENT OF OPERATIONS AND
RETAINED EARNINGS (DEFICIT)
(In Thousands Except Share and Per Share Amounts)
(Unaudited)
Second Quarter Ended Six Months Ended
-------------------- ----------------
May 29, May 30, May 29, May 30,
1998 1997 1998 1997
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net Sales $ 18,510 $ 17,706 $ 32,974 $ 32,990
Cost and Expenses:
Cost of products sold. . . . 12,903 13,802 24,611 25,290
Selling, general and
administrative. . . . . . . 3,349 3,315 6,375 6,454
--------- --------- --------- ---------
16,252 17,117 30,986 31,744
--------- --------- --------- ---------
Operating income. . . . . . . . 2,258 589 1,988 1,246
Interest expense . . . . . . . (453) (345) (851) (681)
Other income (expense). . . . . (9) 25 (34) (51)
--------- --------- --------- ---------
Income before taxes. . . . . . 1,796 269 1,103 514
Provision for income taxes. . . (716) (99) (446) (203)
--------- --------- --------- ---------
Net income. . . . . . . . . . . 1,080 170 657 311
Retained earnings (deficit)
at beginning of period . . (2,705) (3,407) (2,282) (3,548)
--------- --------- --------- ---------
Retained earnings (deficit)
at end of period. . . . . . $ (1,625) $ (3,237) $ (1,625) $ (3,237)
========= ========= ========= =========
Per Share Data:
Basic Earnings Per Share:
Net Income. . . . . . . . . . . $ .52 $ .08 $ .32 $ .15
========= ========= ========= =========
Weighted average number of
shares outstanding . . . . . 2,074,050 2,030,513 2,064,404 2,021,469
========= ========= ========= =========
Diluted Earnings Per Share:
Net Income. . . . . . . . . . . $ .49 $ .08 $ .30 $ .14
========= ========= ========= =========
Weighted average number of
shares outstanding. . . . . . 2,205,860 2,175,475 2,182,836 2,188,390
========= ========= ========= =========
</TABLE>
See Accompanying Notes To Consolidated Financial Statements
2
<PAGE>
<TABLE>
<CAPTION>
PLYMOUTH RUBBER COMPANY, INC.
CONSOLIDATED BALANCE SHEET
(In Thousands)
May 29, Nov. 28,
1998 1997
-------- -------
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash . . . . . . . . . . . . . . . . . . . . . $ 4 $ 12
Accounts receivable. . . . . . . . . . . . . . 11,041 10,347
Allowance for doubtful accounts. . . . . . . . (390) (314)
Inventories:
Raw materials. . . . . . . . . . . . . . . 3,919 3,772
Work in proces . . . . . . . . . . . . . . 1,802 1,472
Finished goods . . . . . . . . . . . . . . 5,736 5,208
-------- --------
11,457 10,452
-------- --------
Deferred tax assets, net . . . . . . . . . . . 1,689 1,689
Prepaid expenses and other current assets. . . 596 873
-------- --------
Total current assets. . . . . . . . . . . 24,397 23,059
-------- --------
PLANT ASSETS:
Plant assets. . . . . . . . . . . . . . . . . 38,743 35,390
Less: Accumulated depreciation. . . . . . . . 18,807 18,049
-------- --------
Total plant assets, net. . . . . . . . . . 19,936 17,341
-------- --------
OTHER ASSETS:
Deferred tax assets, net . . . . . . . . . . . 2,112 2,346
Other long-term assets . . . . . . . . . . . . 1,274 1,318
-------- --------
3,386 3,664
-------- --------
TOTAL ASSETS $ 47,719 $ 44,064
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Revolving line of credit . . . . . . . . . . . $ 10,156 $ 8,221
Trade accounts payable . . . . . . . . . . . . 6,267 6,034
Accrued expenses . . . . . . . . . . . . . . 3,571 3,212
Current portion of long-term borrowings . . . 2,303 2,138
Current portion of product warranties. . . . . 135 160
-------- --------
Total current liabilities 22,432 19,765
-------- --------
LONG-TERM LIABILITIES:
Borrowings . . . . . . . . . . . . . . . . . . 10,389 9,874
Pension obligation . . . . . . . . . . . . . . 3,142 3,358
Product warranties . . . . . . . . . . . . . . 491 516
Other . . . . . . . . . . . . . . . . . . . . 2,156 2,110
-------- --------
Total long-term liabilities 16,178 15,858
-------- --------
STOCKHOLDERS' EQUITY
Preferred stock . . . . . . . . . . . . . . . -- --
Class A voting common stock. . . . . . . . . . 810 810
Class B non-voting common stock . . . . . . . 1,263 1,234
Paid in capital. . . . . . . . . . . . . . . . 9,048 9,067
Retained earnings (deficit). . . . . . . . . . (1,625) (2,282)
Cumulative translation adjustment. . . . . . . (103) (91)
Pension liability adjustment, net of tax . . . (145) (145)
Deferred compensation. . . . . . . . . . . . . (133) (152)
-------- --------
9,115 8,441
Less: Treasury stock at cost . . . . . . . . . (6) --
-------- --------
9,109 8,441
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 47,719 $ 44,064
======== ========
</TABLE>
See Accompanying Notes To Consolidated Financial Statements
3
<PAGE>
<TABLE>
<CAPTION>
PLYMOUTH RUBBER COMPANY, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(In Thousands) (Unaudited)
Six Months Ended
--------------------------
May 29, May 30,
1998 1997
-------- --------
<S> <C> <C>
Cash flows relating to operating activities:
Net Income .. . . . . . . . . . . . . . . $ 657 $ 311
Adjustments to reconcile net income to
net cash provided by (used in)operating
activities:
Depreciation and amortization. . . 827 734
Amortization of deferred compensation 19 19
Changes in assets and liabilities:
Accounts receivable . . . . . . . . (633) (1,375)
Inventory . . . . . . . . . . . . . (1,012) 277
Prepaid expenses. . . . . . . . . . 276 18
Other assets. . . . . . . . . . . . (14) 10
Accounts payable. . . . . . . . . . 245 (42)
Accrued expenses . . . . . . . . . 623 (34)
Pension obligation. . . . . . . . . (71) (298)
Product warranties. . . . . . . . . (50) (56)
Other liabilities . . . . . . . . . 46 (160)
-------- --------
Net cash provided by (used in) operating activities 913 (596)
-------- --------
Cash flows relating to investing activities:
Capital expenditures . . . . . . . . . . . (3,405) (1,992)
Acquisition of Cintas Adhesivas Nunez, S.A.,
net of cash acquired of $90. . . . . . . . -- (2,140)
Acquisition of certain assets of Brite-Line
Industries, Inc.. . . . . . . . . . . . . -- (584)
-------- --------
Net cash used in investing activities (3,405) (4,716)
-------- --------
Cash flows relating to financing activities:
Net increase in revolving line of credit 1,921 441
Proceeds from term loan. . . . . . . . . . 3,710 5,771
Payments of term loan. . . . . . . . . . . (2,813) (626)
Payments on capital leases . . . . . . . . (195) (108)
Payments on insurance financing. . . . . . (145) (88)
Treasury stock purchase. . . . . . . . . . (6) --
Proceeds from issuance of common stock . . 10 23
-------- --------
Net cash provided by financing activities 2,482 5,413
Effect of exchange rates on cash . . . . . . . 2 (8)
-------- --------
Net change in cash . . . . . . . . . . . . . . (8) 93
Cash at the beginning of the period. . . . . . 12 --
-------- --------
Cash at the end of the period. . . . . . . . . $ 4 $ 93
======== ========
Supplemental Disclosure of Cash Flow Information
Cash paid for interest . . . . . . . . . . . . $ 941 $ 712
======== ========
Cash paid for income taxes . . . . . . . . . . $ 79 $ 106
======== ========
</TABLE>
See Accompanying Notes To Consolidated Financial Statements
4
<PAGE>
PLYMOUTH RUBBER COMPANY, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
(1) The Company, in its opinion, has included all adjustments
(consisting of normal recurring accruals) necessary for a
fair presentation of the results for the interim periods.
The interim financial information is not necessarily
indicative of the results that will occur for the full
year. The financial statements and notes thereto should be
read in conjunction with the financial statements and notes
for the years ended November 28, 1997, November 29, 1996,
and December 1, 1995, included in the Company's 1997 Annual
Report to the Securities and Exchange Commission on Form 10-K.
(2) In connection with its former roofing materials business,
the Company issued extended warranties as to the
workmanship and performance of its products. Over 99% of
these warranties had expired prior to the end of 1995, and
the last of the ten-year warranties expired in 1996. (A
small number of certain other, more restrictive, and
limited warranties continue thereafter). The estimated
costs of these warranties were accrued at the time of sale,
subject to subsequent adjustment to reflect actual
experience. Some warranty holders have filed claims or
brought suits against the Company and others relating to
alleged roof failures. The Company believes, upon advice
of counsel, that its warranty obligation under such
warranties is limited to the cost of the roofing materials
and that the amounts of the claims are in excess of its
ultimate liability. The Company is vigorously defending
against these claims and believes that some are without
merit and that the damages claimed in others may not bear
any reasonable relationship to the merits of the claims or
the real amount of damage, if any, sustained by the various
claimants. Management believes that the $626,000 reserve
recorded at May 29, 1998 is adequate provision for the
Company's remaining warranty obligations.
The United States Environmental Protection Agency (EPA) has
asserted two (2) outstanding claims against the Company
under the Comprehensive Environmental Response,
Compensation and Liability Act ("CERCLA"), pursuant to
which EPA is seeking to recover from the Company and other
"generators" the costs associated with the clean-up of
certain sites used by licensed disposal companies hired by
the Company as independent contractors for the disposal
and/or reclamation of hazardous waste materials.
In the first case, a General Notice of Potential Liability
was sent to 1,659 Potentially Responsible Parties ("PRP")
including the Company, in June, 1992, relative to a
Superfund site known as Solvents Recovery Service of New
England ("SRS") at a location in Southington, Connecticut,
concerning shipments to the site which occurred between
June 1, 1956, and January 25, 1974. The EPA has attributed
a 1.74% share of the aggregate waste volume to the Company.
The Company is a participant in the performing PRP group.
The first phase of a remediation program is estimated to
cost $3.6 million. The Administrative Order on Consent for
Removal Action and Remedial/Feasibility study was entered
on or about February 6, 1997. Phase II of the clean-up and
the Remedial Investigation/Feasibility Study ("RI/FS"), is
projected to cost $2.1 million. The most currently
available estimate is that the total cost of the clean-up
for the PRP's will range from approximately $38 million to
$48 million. Based on all available information as well as
its prior experience, management believes the amount
accrued of $511,000, which is net of approximately $215,000
in total payments made by the Company, in the accompanying
consolidated financial statements as of May 29, 1998, is
reasonable in relation to the Company's attributed share of
total estimated aggregate cost. This amount is subject to
adjustment for future developments that may arise from
the long- range nature of this EPA case, legislative
changes, insurance coverage, the uncertainties associated
with the ultimate outcome of the Record of Decision("ROD"),
the joint and several liability provisions of CERCLA, and
the Company's ability to successfully negotiate an outcome
similar to its previous experience in these matters.
5
<PAGE>
PLYMOUTH RUBBER COMPANY, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
In the second case, on January 25, 1994, the Company
received a notification of an additional Superfund Site,
Old Southington Landfill, (the "OSL Site") regarding which
the EPA asserts that the Company is a PRP. The OSL Site is
related to the SRS Site in that, the EPA alleges, after
receipt and processing of various hazardous substances from
PRP's, the owners and/or operators of the SRS Site shipped
the resultant contaminated sludge and waste- water from the
SRS Site to the OSL Site, prior to October, 1967. Since
the Company is alleged to have shipped materials to the SRS
Site, the EPA alleges that the Company is also a PRP of the
OSL Site. In addition, there were direct shippers to the
site, among them the Town of Southington, General
Electric, and Pratt & Whitney, as well as other
transporters and/or users. Based on EPA's asserted volume
of shipments to SRS during that time period, the EPA has
attributed 4.89% of waste volume of all SRS customers to
the Company; no attempt has been made by EPA to adjust the
waste volume for the distillation done by SRS prior to
shipment to OSL. An ROD was issued in September, 1994 for
the first Phase of the clean-up. On or about December 20,
1997, the Company executed the Consent Decree and paid
$140,180 in full settlement of the first phase of the clean
up. The allocation among the parties and scope of the
remedy for the second phase has not been agreed upon; total
costs are estimated at between $10 and $50 million. The
Company has been notified that 21 parties of which the
Company is one will likely be precluded from participating
in an early mediated settlement for the second phase on a
"de minimis" basis. Based on all available information as
well as its prior experience, management believes a
reasonable estimate of its remaining liability is $337,000
and has accrued this amount in the accompanying
consolidated financial statements as of May 29, 1998. This
amount is subject to future developments that may arise
from the long-range nature of this EPA case, legislative
changes, insurance coverage, the uncertainties associated
with the ultimate outcome of the second remedial phase, if
any, and the joint and several liability provisions of
CERCLA, and the Company's ability to successfully negotiate
an outcome similar to its previous experience in these matters.
On or about January 21, 1997, the Company received a Notice
of Responsibility from the DEP pursuant to M.G.L. c. 21E
concerning the certain sites identified as The Ledge, 757-
782 State Road, Dartmouth: RTN No. 4-0234; and Ridge Hill
Road, Freetown: RTN No. 4-0086. The letter indicates that
drums containing hazardous materials, some of which may
have contained the Company's wastes, were discovered at
both sites in April, 1979, and that response actions were
undertaken at both sites between 1979 and 1981 by the DEP.
On information and belief, the company which disposed of
these drums is H&M Drum, to whom the Company shipped wastes
between 1977 to 1979. The DEP has now issued more than
seventy-five notices to other PRP's. In compliance with DEP
requests and statutory requirements, the Company has hired
an LSP to perform certain technical services at the sites.
Recent sampling of existing wells at the Freetown site
contained no finding of any volatile organic chemicals
("VOC's"). Initial sampling at the Dartmouth site was
recently completed, and found low VOC levels at or below
drinking water standards. Until additional data is
gathered, the extent of the problem and or remedial action
required, if any, cannot be determined. Further, the
total number of PRP's is not yet known. Accordingly, at
the current time, the Company is not able to estimate its
portion of any liability ultimately arising from the site.
Therefore, as of May 29, 1998, no reserves have been
provided in the accompanying financial statements.
6
<PAGE>
PLYMOUTH RUBBER COMPANY, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
In addition, in the process of preparing to eliminate the
use of certain underground storage tanks located at the
Company's manufacturing facility in Canton, Massachusetts,
the Company determined that some soil contamination had
occurred in a small localized area near the tanks in
question. In accordance with Massachusetts requirements,
the Company notified the Massachusetts Department of
Environmental Protection ("DEP") of the foregoing and on or
about September 9, 1994, the DEP issued a Notice of
Responsibility, RTN No. 3-11520, pursuant to M.G.L. c. 21E.
According to the preliminary information obtained by an
independent Licensed Site Professional, the contamination
of the soil appears to be confined to a small area and does
not pose an environmental risk to the surrounding property
or community. Remediation action is in process. It is
expected that such assessment and remediation will take up
to two years to complete and that the remaining costs for
same will not exceed the additional sum of $261,000, which
has been provided for in the accompanying financial
statements.
Pursuant to the Company's compliance with EPA and
Massachusetts regulations which require the upgrade or
replacement of underground storage tanks by December 22,
1998, the Company arranged for the testing of the area
adjacent to three underground storage tanks located at the
Company's manufacturing facility in Canton, Massachusetts.
A limited amount of solvent was found in the soil in the
vicinity of the tanks; however, additional sampling is
required. The Company notified DEP of its test results,
and on November 19, 1997, the DEP issued a written
response, notifying the Company of its responsibility, RTN
No. 3-15347, under M.G.L. c. 21E as an unclassified site
for response and remedial action. The Company has several
options under the law to protect, remove or replace the
tanks and plans to take whatever remedial action is deemed
appropriate. The Company is in the process of determining
the costs associated with each of these alternatives and
has hired an LSP to perform initial site investigation
activities.
The Company is defending other legal matters arising in the
normal course of business. Based upon advice of counsel,
management believes that such legal matters will not have a
material adverse effect on the Company's results of
operations or its financial position.
7
<PAGE>
PLYMOUTH RUBBER COMPANY, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
(3) During the first quarter of fiscal 1998, the Company
adopted Statement of Financial Accounting Standards No.
128, Earnings Per Share. Primary and fully diluted
earning per share have been replaced with basic and diluted
earnings per share. All prior year earnings per share
amounts have been restated to conform with the requirements
of SFAS No. 128.
The following table reflects the factors used in computing
earnings per share and the effect on income and the
weighted average number of shares of dilutive potential
common stock.
Second Quarter Ended May 29, 1998
---------------------------------------------
Income Shares Per Share
(Numerator) (Denominator) Amount
----------- ----------- -----------
Basic EPS
Income available to common
stockholders $ 1,080,000 2,074,050 $ .52
===========
Effect of Dilutive Security (A)
options -- 131,810
----------- -----------
Diluted EPS
Income available to common
stockholders and assumed
conversions $ 1,080,000 2,205,860 $ .49
=========== =========== ===========
Second Quarter Ended May 30, 1997
---------------------------------------------
Income Shares Per Share
(Numerator) (Denominator) Amount
----------- ----------- -----------
Basic EPS
Income available to common
stockholders $ 170,000 2,030,513 $ .08
===========
Effect of Dilutive Security (A)
options -- 144,962
Diluted EPS
Income available to common
stockholders and assumed
conversions $ 170,000 2,175,475 $ .08
=========== =========== ===========
(A) Options for 188,400 and 139,160 shares of common
stock were outstanding at May 29, 1998 and May 30, 1997,
respectively, but were not included in computing diluted
earnings per share in each of the respective periods
because their effects were anti-dilutive.
8
<PAGE>
PLYMOUTH RUBBER COMPANY, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
-----------------------------------------------------
(3) Continued...
Six Months Ended May 29, 1998
---------------------------------------------
Income Shares Per Share
(Numerator) (Denominator) Amount
----------- ----------- -----------
Basic EPS
Income available to common
stockholders $ 657,000 2,064,404 $ .32
===========
Effect of Dilutive Security (B)
options -- 118,432
----------- -----------
Diluted EPS
Income available to common
stockholders and assumed
conversions $ 657,000 2,182,836 $ .30
=========== ========== ===========
Six Months Ended May 30, 1997
Income Shares Per Share
--------------------------------------------
(Numerator) (Denominator) Amount
----------- ----------- -----------
Basic EPS
Income available to common
stockholders $ 311,000 2,021,469 $ .15
Effect of Dilutive Security (B)
options -- 166,921
----------- ---------
Diluted EPS
Income available to common
stockholders and assumed
conversions $ 311,000 2,188,390 $ .14
=========== ========= ===========
(B) Options for 154,160 and 86,425 shares of common stock
were outstanding at May 29, 1998 and May 30, 1997,
respectively, but were not included in computing diluted
earnings per share in each of the respective periods
because their effects were anti-dilutive.
(4) On April 13, 1998 the Company refinanced one of its term
loans with an existing lender. The new term loan, in the
principal amount of $3,710,000, due May, 2003, is secured by a
first interest in certain equipment. Monthly payments,
beginning June, 1998, are $75,296, including interest at
8.04%. The proceeds from the refinancing were used to pay
down $1,418,000 of the revolving line of credit, $35,000 of
accrued interest and $2,257,000 of term debt. This term loan
agreement contains loan covenants similar to the Company's
existing term loans.
9
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
FIRST SIX MONTHS, 1998, COMPARED WITH FIRST SIX MONTHS, 1997
Net sales at $32,974,000 were comparable with the first six
months of 1997. Sales from Plymouth's Canton operations
decreased 8% for the six months, primarily because of capacity
constraints, and product mix. The Company anticipates that the installation
of new equipment will gradually increase capacity throughout fiscal 1998.
Brite-Line Technologies, which is
now in the peak summer selling period, had a significant sales
increase from the previous year, reflecting increased business
from new and existing customers. Plymouth Europa sales increased
significantly from the previous year, both because of increased
demand and because the subsidiary's operations were only included
from January, 1997.
Gross margin increased to 25.4% from 23.3%. Gross margin in
Plymouth's Canton operations increased to 25.2% from 23.3%,
reflecting improvements in production costs, including lower
manufacturing spending, improved production output and lower raw
material prices, partially offset by unfavorable volume variances
due to the lower production activity in the first quarter of
1998. Brite-Line's gross margin also improved to 30.3% from
22.9%, reflecting favorable overhead absorption from the
increased production activity and a favorable product mix.
Plymouth Europa's gross margin decreased 3.8% from the prior
year, reflecting a change in product mix.
Selling, general and administrative expenses as a percentage of
sales decreased to 19.3% from 19.6%, as lower commissions,
freight, advertising and selling salaries were offset by higher
accrued profit sharing and bonus and higher Brite-Line samples
and testing expense. Total selling, general and administrative
expenses at Plymouth's Canton operations decreased from the prior
year, while expenses increased at Brite-Line and Plymouth Europa.
Interest expense increased to $851,000 from $681,000, primarily
because of higher loan balances to finance capital expenditures
and operating activities.
As a result of the above factors, income before tax increased to
$1,103,000 from $514,000 and net income increased to $657,000
from $346,000.
Cash generated from operating activities was $913,000 as compared
to $596,000 used in the first half of the prior year. The major
contributors to cash inflows were net income of $657,000,
depreciation of $827,000, and a total increase of $868,000 in
accrued expenses and accounts payable. The major operating uses
of cash were an inventory increase of $1,012,000 and an accounts
receivable increase of $633,000. During 1998, the Company used
$1,921,000 from its revolving line of credit and $3,710,000 from
a refinancing of capital equipment, to pay off or to reduce term
debt of $2,813,000 and finance capital expenditures of
$3,405,000. The revolving line of credit was used to finance
some of the capital expenditures on an interim basis until the
capital lease and capital expenditure line of credit (described below)
were completed.
As of May 29, 1998, because of collateral limitations and after
consideration of a letter of credit related to the purchase of
new equipment and to a guarantee of 80,000,000 pesetas
(approximately $577,000) on a term-loan agreement with a Spanish
Bank syndicate, the Company had approximately $1,300,000 of
unused borrowing capacity under its $15 million line of credit
with its primary lender. Subsequent to the end of the second
quarter, the Company has completed a capital lease, for
$569,000. In addition, the Company has completed a capital
expenditure line of credit, for a maximum of
10
<PAGE>
FIRST SIX MONTHS, 1998, COMPARED WITH FIRST SIX MONTHS, 1997
(Continued)
$2,000,000, of which $977,000 was funded. In the opinion of
management, anticipated cash flow from operations, and additional
funds generated from financing arrangements will provide
sufficient funds to meet expected needs during fiscal 1998,
including necessary working capital expansion to support
anticipated revenue growth. The Company is in compliance with its
financial covenants as of the end of the second quarter of 1998,
and expects to be in compliance with these covenants for at least the next
four quarters.
The Company is concerned about the current strike at General Motors,
its largest customer, and the potential significant negative impact on
its operations for the third quarter and subsequent quarters.
Management is reviewing the situation on an on-going basis.
Year 2000
Computers, software and other equipment utilizing microprocessors
that use only two digits to identify a year in a date field may
be unable to process accurately certain date-based information at
or after the year 2000. This is commonly referred to as the
"Year 2000 issue," and management has assembled a task force to
oversee the entire year 2000 process, including producing an
inventory of issues, assessment, correction and testing, and
implementation. The task force is looking at critical
operational and reporting systems, operating systems and personal
computers, vendor compliance, manufacturing equipment compliance,
customer coordination and other areas. Management expects to
have addressed most issues pertaining to the year 2000 issue by
the beginning of fiscal 1999, although there is no guarantee it will
be able to do so. Based upon currently available
information, management has no reason to believe that its goal
and expectation will not be met and does not anticipate that the
cost of effecting Year-2000 compliance will have a material
impact on the Corporation's financial condition, results of
operations, or liquidity.
Certain statements in this report, in the Company's press
releases and in oral statements made by or with the approval of
an authorized executive officer of the Company may constitute
"forward-looking statements" as that term is defined under the
Private Securities Litigation reform Act of 1995. These may
include statements projecting, forecasting or estimating Company
performance and industry trends. The achievement of the
projections, forecasts or estimate is subject to certain risks
and uncertainties. Actual results may differ materially from
those projected, forecasted or estimated. The applicable risks
and uncertainties include general economic and industry
conditions that affect all international businesses, as well as
matters that are specific to the Company and the markets it
serves. General risks that may impact the achievement of such
forecast include: compliance with new laws and regulations,
significant raw material price fluctuations, currency exchange
rate fluctuations, limits on the repatriation of funds and
political uncertainty. Specific risks to the Company include:
risk of recession in the economies in which its products are
sold, the concentration of a substantial percentage of the
Company's sales with a few major automotive customers,
competition in pricing and continued globalization of the
automotive supply base.
11
<PAGE>
SECOND QUARTER, 1998, COMPARED WITH SECOND QUARTER, 1997
Net sales increased 4.5% to $18,510,000 from $17,706,000 a year
ago. The sales increase was primarily contributed by the Brite-
Line Technologies subsidiary, where sales increased significantly
from last year. During the quarter, Brite-Line received a surge
in orders from new and existing customers. Brite-Line Technologies, which is
now in the peak summer selling period, had a significant sales
increase from the previous year, reflecting increased business
from new and existing customers. The Plymouth Europa
subsidiary also increased sales significantly over the previous
year. Sales at Plymouth's Canton operations decreased 9.3% from
the prior year, reflecting continuing capacity constraints. The Company
anticipates that the installation of new equipment will gradually increase
capacity throughout fiscal 1998.
Gross margin increased to 30.3% from 22.1% a year ago. At
Plymouth's operations in Canton, gross margin increased to 29.5%
from 21.4%, due to improvements in production costs, including
lower manufacturing spending, lower raw material prices, and
improved production output. At Brite-Line, the gross margin also
improved to 38.5% from 29.5%, reflecting favorable overhead
absorption from the increased production activity, and a
favorable product mix.
Selling, general and administrative expenses as a percentage of
sales decreased to 18.1% from 18.7% last year. Lower
commissions, freight, advertising, and selling salaries were
offset by higher accrued profit sharing and bonus and higher
Brite-Line samples and testing expense. Total selling, general
and administrative expenses at Plymouth's Canton operations and
Plymouth Europa decreased from the prior year, while expenses
increased at Brite-Line due to the increased activity.
Interest expense increased to $453,000 from $345,000, primarily
because of higher loan balances to finance capital expenditures
and operating activities.
As a result of the above factors, income before tax increased to
$1,796,000 from $269,000 and net income increased to $1,080,000
from $170,000.
12
<PAGE>
PLYMOUTH RUBBER COMPANY, INC.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
-----------------
Reference is made to the information contained in
Item 3 of the Company's Annual Report on Form 10-K
for its fiscal year ended November 28, 1997, and in
Note 12 of the Notes To Consolidated Financial
Statements contained in said report.
Item 2. Changes in Securities
---------------------
None
Item 3. Defaults upon Senior Securities
-------------------------------
Not Applicable
Item 4. Submission of Matters to a Vote of Security Holders
---------------------------------------------------
The Company's Annual Meeting was held on April 24,1998.
The following members were elected to the Company's
Board of Directors to hold office for the ensuing
three-year term:
Nominees In Favor Opposed
Joseph D. Hamilburg 748,714 210
C. Gerald Goldsmith 431,655 0
The results on the voting of the following additional
items were as follows:
The ratification of the Company's Amendment to the
1995 Non-Employee Directors stock option plan.
In Favor Opposed Abstain No Vote
685,299 63,021 604 0
The ratification of the appointment of Price
Waterhouse LLP as independent auditors of the Company
for the next fiscal year:
In Favor Opposed Abstain No Vote
747,521 1,000 403 0
13
<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 thereto duly authorized.
Plymouth Rubber Company, Inc.
-----------------------------
(Registrant)
/s/ Joseph J. Berns
-----------------------------
Joseph J. Berns
Vice President Finance
Date: July 13, 1998
----------------------------
14
<PAGE>
PLYMOUTH RUBBER COMPANY, INC.
INDEX TO EXHIBITS
Exhibit
No. Description
- ------- -----------
(2) Not Applicable.
(3)(i) Restated Articles of Organization -- incorporated by
reference to Exhibit 3(i) of the Company's Annual Report
on Form 10-K for the year ended December 2, 1994.
(3)(ii) By Laws, as amended -- incorporated by reference to
Exhibit (3)(ii) of the Company's Annual Report on Form 10K
for the year ended November 26, 1993.
(4)(i) Mortgage Note between Plymouth Rubber Company, Inc.
and the Board of Education of Charles County, Maryland,
dated November 1, 1991 -- incorporated by reference to
Exhibit (2) (xiii) to the report on Form 10-Q for the
Quarter Ended May 30, 1992.
(4)(ii) Promissory Note between Plymouth Rubber Company, Inc.
and Foothill Capital Corporation dated October 1, 1993 --
incorporated by reference to Exhibit (2)(i) to the report
on Form 8-K with cover page dated October 1, 1993.
(4)(iii) Loan and Security Agreement between Plymouth Rubber
Company, Inc. and Foothill Capital Corporation dated
October 1, 1993 -- incorporated by reference to Exhibit
(2)(ii) to the report on Form 8-K with cover page dated
October 1, 1993.
(4)(iv) Promissory Note between Plymouth Rubber Company, Inc.
and General Electric Capital Corporation dated December
29, 1995 -- incorporated by reference to Exhibit (4)(viii)
to the report on Form 10-Q for the Quarter ended March 1, 1996.
(4)(v) Master Security Agreement between Plymouth Rubber
Company, Inc. and General Electric Capital Corporation
dated December 29, 1995 -- incorporated by reference to
Exhibit (4)(viii) to the report on Form 10-Q for the
quarter ended March 1, 1996.
(4)(vi) Demand Note between Plymouth Rubber Company, Inc. and
LaSalle National Bank dated June 6, 1996 -- incorporated
by reference to Exhibit (2)(i) to the report on Form 8-K
with cover page dated June 6, 1996.
(4)(vii) Loan and Security Agreement between Plymouth Rubber
Company, Inc. and LaSalle National Bank dated June 6, 1996
-- incorporated by reference to Exhibit (2)(ii) to the
report on Form 8-K with cover page dated June 6, 1996.
(4)(viii) Amendment to Master Security Agreement between
Plymouth Rubber Company, Inc. and General Electric Capital
Corporation dated February 19, 1997 -- incorporated by
reference to Exhibit (4)(xi) to the report on Form 10-Q
for the quarter ended February 25, 1997.
(4)(ix) Master Security Agreement between Plymouth Rubber
Company, Inc. and General Electric Capital Corporation
dated January 29, 1997 -- incorporated by reference to
Exhibit (4)(xii) to the Company's report on Form 10-Q for
the quarter ended February 25, 1997.
(4)(x) Demand Note between Brite-Line Technologies, Inc. and
LaSalle National Bank dated February 28, 1997 --
incorporated by reference to Exhibit (4)(xiii) to the
Company's report on Form 10-Q for the quarter ended May
30, 1997.
15
<PAGE>
PLYMOUTH RUBBER COMPANY, INC.
INDEX TO EXHIBITS
(Continued)
Exhibit
No. Description
- ------- -----------
(4)(xi) Loan and Security Agreement between Brite-Line
Technologies, Inc. and LaSalle National Bank dated
February 25, 1997 -- incorporated by reference to Exhibit
(4)(xiv) to the Company's report on Form 10-Q for the
quarter ended May 30, 1997.
(4)(xii) Continuing Unconditional Guaranty between Brite-Line
Technologies, Inc. LaSalle National Bank dated February
25, 1997 -- incorporated by reference to Exhibit (4)(xv)
to the Company's report on Form 10-Q for the quarter ended
May 30, 1997.
(4)(xiii) Amendment to Loan and Security Agreement between
Plymouth Rubber Company, Inc. and LaSalle National Bank
dated May 7, 1997 -- incorporated by reference to Exhibit
(4)(xvi) to the Company's report on Form 10-Q for the
quarter ended May 30, 1997.
(4)(xiv) Continuing Unconditional Guaranty between Plymouth
Rubber Company, Inc. and LaSalle National Bank dated March
20, 1997 -- incorporated by reference to Exhibit (4)(xvii)
to the Company's report on Form 10-Q for the quarter
ended May 30, 1997.
(4)(xv) Public Deed which contains the loan guaranteed by
mortgage and granted between Plymouth Rubber Europa, S.A.
and Caja de Ahorros Municipal de Vigo, Banco de Bilbao,
and Vizcaya y Banco de Comercio dated April 11, 1997 --
incorporated by reference to Exhibit (4)(xviii) to the
Company's report on Form 10-Q for the quarter ended May
30, 1997.
(4)(xvi) Corporate Guaranty between Plymouth Rubber Company, Inc.
and Caja de Ahorros Municipal de Vigo, Banco de Bilbao,
and Vizcaya y Banco de Comercio dated April 11, 1997 -
incorporated by reference to Exhibit (4)(xix) to the
Company's report on Form 10-Q for the quarter ended
May 30, 1997.
(4)(xvii) Amendment to Master Security Agreements between Plymouth
Rubber Company, Inc. and General Electric Capital Corporation
dated December 29, 1995 and January 27, 1997.
(4)(xviii) Promissory Note between Plymouth Rubber Company, Inc. and
General Electric Capital Corporation dated April 13, 1998.
(9)(i) Voting Trust Agreement, as amended, relating to
certain shares of Company's common stock -- incorporated
by reference to Exhibit (9) of the Company's Annual Report
on Form 10-K for the year ended November 26, 1993.
(9)(ii) Voting Trust Amendment Number 6 -- incorporated by
reference to Exhibit 9(ii) of the Company's Annual Report
on Form 10-K for the year ended December 2, 1994.
(10)(i) 1982 Employee Incentive Stock Option Plan --
incorporated by reference to Exhibit (10)(i) of the
Company's Annual Report on Form 10-K for the year ended
November 26, 1993.
(10)(ii) General Form of Deferred Compensation Agreement
entered into between the Company and certain officers --
incorporated by reference to Exhibit (10)(ii) of the
Company's Annual Report on Form 10-K for the year ended
November 26, 1993.
16
<PAGE>
PLYMOUTH RUBBER COMPANY, INC.
INDEX TO EXHIBITS
(Continued)
Exhibit
No. Description
- ------- -----------
(10)(iii) 1992 Employee Incentive Stock Option Plan -- incorporated
by reference to Exhibit (10)(iv) of the Company's Annual
Report on Form 10-K for the year ended November 26, 1993.
(10)(iv) 1995 Non-Employee Director Stock Option Plan -- incorporated
by reference to Exhibit (4.3) of the Company's Registration
Statement on Form S-8 dated May 4, 1995.
(10)(v) 1995 Employee Incentive Stock Option Plan -- incorporated
by reference to Exhibit (4.4) of the Company's Registration
Statement on Form S-8 dated May 4, 1995.
(10)(vi) Sales contract entered into between the Company and Kleinewefers
Kunststoffanlagen GmbH -- incorporated by reference to Exhibit
(10)(vi) of the Company's report on Form 10-Q for the quarter
ended February 28, 1997.
(11) Not Applicable.
(12) Not Applicable.
(13) Not Applicable.
(15) Not Applicable
(16) Not Applicable.
(18) Not Applicable.
(19) Not Applicable
(21) Brite-Line Technologies, Inc. (incorporated in Massachusetts)
and Plymouth Rubber Europa, S.A. (organized under the laws of
Spain).
(22) Not Applicable.
(23) Not Applicable.
(24) Not Applicable.
(27) Financial data schedule for the six months ended May 29, 1998.
(28) Not Applicable.
(29) Not Applicable.
17
<PAGE>
PROMISSORY NOTE
April 13, 1998
(Date)
104 Revere Street, Canton, Norfolk County, MA 02021
_____________________________________________________________________________
(Address of Maker)
FOR VALUE RECEIVED, Plymouth Rubber Company, Inc. ("Maker") promises, jointly
and severally if more than one, to pay to the order of General Electric
Capital Corporation or any subsequent holder hereof (each, a "Payee") at its
office located at 4 North Park Drive Suite 500, Hunt Valley, MD 21030 or at
such other place as Payee or the holder hereof may designate, the principal
sum of Three million seven hundred ten thousand and 00/100 Dollars
($3,710,000.00), with interest thereon, from the date hereof through and
including the dates of payment, at a fixed interest rate of Eight and 04/100
percent (8.04%) per annum, to be paid in lawful money of the United States,
in fifty-nine (59) consecutive monthly installments of principal and interest
of Seventy-five thousand two hundred ninety-six and 46/100 Dollars
($75,296.46) each ("Periodic Installment") and a final installment which
shall be in the amount of the total outstanding principal and interest. The
first Periodic Installment shall be due and payable on June 1, 1998 and the
following Periodic Installments and the final installment shall be due and
payable on the same day of each succeeding month (each, a "Payment Date").
Such installments have been calculated on the basis of a 360 day year of
twelve 30-day months. Each payment may, at the option of the Payee, be
calculated and applied on an assumption that such payment would be made on
its due date.
The acceptance by Payee of any payment which is less than payment in full of
all amounts due and owing at such time shall not constitute a waiver of
Payee's right to receive payment in full at such time or at any prior or
subsequent time.
The Maker hereby expressly authorizes the Payee to insert the date value is
actually given in the blank space on the face hereof and on all related
documents pertaining hereto.
This Note may be secured by a security agreement, chattel mortgage, pledge
agreement or like instrument (each of which is hereinafter called a "Security
Agreement") dated as of January 29, 1997, as amended.
Time is of the essence hereof. If any installment or any other sum due under
this Note or any Security Agreement is not received within ten (10) days
after its due date, the Maker agrees to pay, in addition to the amount of
each such installment or other sum, a late payment charge of five percent
(5%) of the amount of said installment or other sum, but not exceeding any
lawful maximum. If (i) Maker fails to make payment of any amount due
hereunder within ten (10) days after the same becomes due and payable; or
(ii) Maker is in uncured or unwaived default under, or fails to perform under
any term or condition contained in any Security Agreement, then the entire
principal sum remaining unpaid, together with all accrued interest thereon
and any other sum payable under this Note or any Security Agreement, at the
election of Payee, shall immediately become due and payable, with interest
thereon at the lesser of twelve percent (12%) per annum or the highest rate
not prohibited by applicable law from the date of such accelerated maturity
until paid (both before and after any judgment).
The Maker may prepay in full, but not in part, its entire indebtedness
hereunder upon payment of an additional sum as a premium equal to the
following percentages of the original principal balance for the indicated
period:
Prior to the first annual anniversary date of this Note:
three percent (3%)
Thereafter and prior to the second annual anniversary date of this Note:
two percent (2%)
Thereafter and prior to the third annual anniversary date of this Note:
one percent (1%)
Thereafter and prior to the fourth annual anniversary date of this Note:
one percent (1%)
Thereafter and prior to the fifth annual anniversary date of this Note:
one percent (1%)
and zero percent (0%) thereafter, plus all other sums due hereunder or under
any Security Agreement.
It is the intention of the parties hereto to comply with the applicable usury
laws; accordingly, it is agreed that, notwithstanding any provision to the
contrary in this Note or any Security Agreement, in no event shall this Note
or any Security Agreement require the payment or permit the collection of
interest in excess of the maximum amount permitted by applicable law. If any
such excess interest is contracted for, charged or received under this Note
or any Security Agreement, or if all of the principal balance shall be
prepaid, so that under any of such circumstances the amount of interest
contracted for, charged or received under this Note or any Security Agreement
on the principal balance shall exceed the maximum amount of interest
permitted by applicable law, then in such event (a) the provisions of this
paragraph shall govern and control, (b) neither Maker nor any other person
or entity now or hereafter liable for the payment hereof shall be obligated
to pay the amount of such interest to the extent that it is in excess of the
maximum amount of interest permitted by applicable law, (c) any such excess
which may have been collected shall be either applied as a credit against the
then unpaid principal balance or refunded to Maker, at the option of the
Payee, and (d) the effective rate of interest shall be automatically reduced
to the maximum lawful contract rate allowed under applicable law as now or
hereafter construed by the courts having jurisdiction thereof. It is further
agreed that without limitation of the foregoing, all calculations of the rate
of interest contracted for, charged or received under this Note or any
Security Agreement which are made for the purpose of determining whether such
rate exceeds the maximum lawful contract rate, shall be made, to the extent
permitted by applicable law, by amortizing, prorating, allocating and
spreading in equal parts during the period of the full stated term of the
indebtedness evidenced hereby, all interest at any time contracted for,
charged or received from Maker or otherwise by Payee in connection with such
indebtedness; provided, however, that if any applicable state law is amended
or the law of the United States of America preempts any applicable state law,
so that it becomes lawful for the Payee to receive a greater interest per
annum rate than is presently allowed, the Maker agrees that, on the effective
date of such amendment or preemption, as the case may be, the lawful maximum
hereunder shall be increased to the maximum interest per annum rate allowed
by the amended state law or the law of the United States of America.
The Maker and all sureties, endorsers, guarantors or any others (each such
person, other than the Maker, an "Obligor") who may at any time become liable
for the payment hereof jointly and severally consent hereby to any and all
extensions of time, renewals, waivers or modifications of, and all
substitutions or releases of, security or of any party primarily or
secondarily liable on this Note or any Security Agreement or any term and
provision of either, which may be made, granted or consented to by Payee, and
agree that suit may be brought and maintained against any one or more of
them, at the election of Payee without joinder of any other as a party
thereto, and that Payee shall not be required first to foreclose, proceed
against, or exhaust any security hereof in order to enforce payment of this
Note. The Maker and each Obligor hereby waives presentment, demand for
payment, notice of nonpayment, protest, notice of protest, notice of
dishonor, and all other notices in connection herewith, as well as filing of
suit (if permitted by law) and diligence in collecting this Note or enforcing
any of the security hereof, and agrees to pay (if permitted by law) all
expenses incurred in collection, including Payee's reasonable attorneys'
fees.
THE MAKER HEREBY UNCONDITIONALLY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY
CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF, DIRECTLY OR
INDIRECTLY, THIS NOTE, ANY OF THE RELATED DOCUMENTS, ANY DEALINGS BETWEEN
MAKER AND PAYEE RELATING TO THE SUBJECT MATTER OF THIS TRANSACTION OR ANY
RELATED TRANSACTIONS, AND/OR THE RELATIONSHIP THAT IS BEING ESTABLISHED
BETWEEN MAKER AND PAYEE. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL
ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT
(INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY
CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS.) THIS WAIVER IS
IRREVOCABLE MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING,
AND THE WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS,
SUPPLEMENTS OR MODIFICATIONS TO THIS NOTE, ANY RELATED DOCUMENTS, OR TO ANY
OTHER DOCUMENTS OR AGREEMENTS RELATING TO THIS TRANSACTION OR ANY RELATED
TRANSACTION. IN THE EVENT OF LITIGATION, THIS NOTE MAY BE FILED AS A WRITTEN
CONSENT TO A TRIAL BY THE COURT.
This Note and any Security Agreement constitute the entire agreement of the
Maker and Payee with respect to the subject matter hereof and supercedes all
prior understandings, agreements and representations, express or implied.
No variation or modification of this Note, or any waiver of any of its
provisions or conditions, shall be valid unless in writing and signed by an
authorized representative of Maker and Payee. Any such waiver, consent,
modification or change shall be effective only in the specific instance and
for the specific purpose given.
Any provision in this Note or any Security Agreement which is in conflict
with any statute, law or applicable rule shall be deemed omitted, modified
or altered to conform thereto.
Plymouth Rubber Company, Inc.
/s/ Deborah A. Kream By: /s/ Joseph J. Berns (L.S.)
(Witness) (Signature)
Deborah A. Kream Joseph J. Berns VP Finance
(Print name) Print name (and title, if applicable)
104 Revere Street
Canto, MA 02021 041733970
(Address) (Federal tax identification number)
==============================================================================
April 13, 1998
VIA FACSIMILIE
Mr. Joseph Berns
Plymouth Rubber Company, Inc.
104 Revere Street
Canton, MA 02021
Dear Mr. Berns:
This letter will serve to amend the Promissory Note dated April 13, 1998 to
Master Security Agreement dated January 29, 1997, as amended as follows:
Maker will pay a Payment on May 1, 1998 of interest only for the period of
April 13, 1998 through April 30, 1998. The interest payment will be based on
a fixed interest rate of 8.04%.
All other terms and conditions will remain in full force and effect.
Please indicate your acceptance by signing below.
Sincerely,
/s/ Robert R. Blee
Robert R. Blee
Senior Risk Analyst
ACKNOWLEDGED AND AGREED:
PLYMOUTH RUBBER COMPANY, INC.
By:/s/ Joseph J. Berns
Name: Joseph J. Berns
Title: VP Finance
==============================================================================
(3/91)
COLLATERAL SCHEDULE NO. 002
THIS COLLATERAL SCHEDULE NO. 002 is annexed to and made a part of that
certain Master Security Agreement dated as of January 29, 1997, as amended
between General Electric Capital Corporation as Secured Party and Plymouth
Rubber Company, Inc. as Debtor and describes collateral in which Debtor has
granted Secured Party a security interest in connection with the
Indebtedness (as defined in the Security Agreement) including without
limitation that certain Promissory Note dated April 13, 1998 in the
original principal amount of $3,710,000.00.
Year/Model Serial Number Description
SEE ANNEX A ATTACHED HERETO AND FORMING A PART HEREOF
SECURED PARTY: DEBTOR:
General Electric Capital Corporation Plymouth Rubber Company, Inc.
By: /s/ Donna L. Esser By: /s/ Joseph J. Berns
Title: Transaction Coordinator Title: VP Finance
Date: April 13, 1998 Date: April 9, 1998
i:\sec\dle\plymouth\doc
ANNEX A
BUILDING NO.1 - LEASED (INCLUDES 1-1, 1-2, 1-3) -----------------------
- -------------
Rental Property "Payne Engineering"
BUILDING NO. 2-1 (R) - NOT IN USE -------------------------------------
Barn - Not in use for current manufacturing
BUILDING NO. 3-1, 3-2 - (LEASED) -------------------------------------
- ---------------------
Rental Property "Payne Engineering"
BUILDING NO. 3-3, 4 - (LEASED) ----------------------------------------
- -------------------
Rental Property "Payne Engineering"
BUILDING NO. 5A - (MAINTENANCE STORAGE) -------------------------------
- ----------------
Not in use for current manufacturing
USED EQUIPMENT & NEW CONSTRUCTION
1 1 #11 Size Banbury Body and Slide Door (in Yard)
2 4 Spare No. 11 Banbury Rotors (In Yard)
3 1 #3D - 300 H.P. Banbury Body - Spare
4 1 #3D Banbury Spare Rebuilt Rotors
5 1 Black Rock 45" Hydraulic Slab Cutter (in Yard)
6 1 Core Cutter for Friction Cameron (At Gill Machine)
7 Lot Yard Equipment in Separate Room:
3 Snow Blowers, Steam Cleaner, High Presure Cleaner,
Heating units, 2 Emergency Generators, Battery Charger, Etc
8 Lot Electric Storage Area:
Electric Fixtures, Electrical Control Boxes, Motors,
Light Fixtures, Wire, Elect. Tubing, Misc. Elect. Supplies
9 Lot Welding Area:
Oxy-Acetylene Outfits, 2 Lincoln 225/250 Arc Welders,
Miscellaneous Welding and Cutting Fixtures.
BUILDING NO. 5B - (MAINTENANCE STORAGE) -------------------------------
- ----------------
MAINTENANCE STOCK ROOM AND FORK TRUCK REPAIR
1 Lot Main Stock Room Spare Parts, Shelving, Electric
Parts, Motors, Cabinets, Tools, Drills, V-Belts,
Flat Belts, Bearings, Reducers, Etc.
2 Lot Miscellaneous spare parts including - Flat Belts, Pumps,
Chainfalls, Motors, Reducers, Gears, Mixers, Large
Bushings, Battery Charges, Fittings, Large Motors, Etc.
BUILDING NO. 6-1 - (MAINTENANCE STORAGE)-------------------------------
- ----------------
MAINTENANCE USED STORAGE
1 Lot Heater Units, Cooling Cans, Fans, Tri-Sets, Gears,
Compressors, Motors, Transformers, Idlers, Reducers, Etc.
2 Lot 5 Chillers, Drives, Hot Drum, Pipe Fixtures
3 Lot Bench Scales, Floor Scales, Heaters, Air Makeup Units,
Large Motors, Etc.
BUILDING NO. 7-2 - (ELECTRIC SHOP) (1342) -----------------------------
- ----------------
ELECTRIC SHOP
1 Lot Electric Shop w/Motors, Hoists, Stacker, Grinders,
Spare Parts, Tools, Test Equipment
2 Lot Ridgid Power Threader & Enerpac H Frame Press
& Vise
BUILDING NO. 7-1 - (MAINTENANCE, NO. 7 CAL., NO. 3 BAN.) --------------
- ----------------
PIPE SHOP
1 Lot Pipe Shop - Including Welder, Threader, Pneumatic
& Electric Tools, Vises, Grinders, Pumps, Lockers,
Cabinets, Etc.
MAINTENANCE SHOP
1 1 Sheldon Lathe, s/n UM20968 13' x 36, w/Tooling
2 1 Newport Vertical Mill,s/n 79175, 42" P.T. w/6" Machine Vise
3 1 Norton Type C 10 x 36 Surface Grinder, S/N NA
4 1 Boyer Schultz 612 Hand Surface Grinder, S/N NA
5 1 TOS Trencier 17" x 17" Lathe, S/N 64-2-587, 2000 RPM,
Model SN-40
6 1 Hendey 16" x 4' Lathe, S/N 10214
7 1 Do All Vertical Band Saw, S/N 36-63690, Model V-36, 36"
8 1 Dayton U.S. 20" Floor Drill
9 1 Kalamazoo 9AD Horizontal Band Saw, S/N 5031
10 Lot Miscellaneous Machine Tools including Gang
Box w/Hand & Electric Tools, Electrical Hoists
Benches, Vises, Grinders, Cabinets, Tables, Floor Drill, 6'
Sander, Cafeteria, & Office Furniture
CALENDER NO. 7 LINE -------------------------------------------------
1 1 Farrell 3 Roll 60" x 24" Calender w/125 Horsepower
Motor, Unwind & 2 - 2' Cooling Cans & Trane
15 Ton Water Cooled Refrigeration Compressor
2 2pcs Barry 60" x 22"/20" 2 Roll Mill & 48" x 16" 2 Roll Mill
w/1 - 200 Horsepower Drive
3 1 Hoists, Scale Carts, Tubs, Mixer
BANBURY N0. 3 LINE --------------------------------------------------
1 1 Banbury Size 11 Mixer, Drill Side, Toledo
Batching and Weighing System w/Scale & Recorders
500/250 Horsepower, Slide Door, Thermolator, w/Trane
50 Ton Chiller. Banbury & Motor major renewal 1994
Solid State Starter Controller Upgrade 1996
Upgrade Screw Conveyor Bulk Feed System 1997
2 1 Bolling 84" x 26"/22" 2 Roll Mill, 200 Horsepower
w/Soap Conveyor
3 1 Royal 3A Extruder Strainer - 10" Screw, Profile Head, w/
Take-A-Way Cut Off Unit. New Teco 150 HP 3 Phase Induction
Motor with Variable Speed AC Drive (1996)
BUILDING NO. 8-1 - (COMPOUND ROOM) (4489) -----------------------------
- ----------------
1ST FLOOR COMPOUND ROOM
1 Lot Black Rock 30" Hydraulic Cutter, Scales, Con-
veyor, Baler, Tote Bins, Hoists, Etc. In Room
2 1 Trane Refrigeration Compressor, 30 HP, 35 Tons with/
Piping (Ban 3/ Cal 7) - Water Cooled
3 1 Anver Electric Power Vacuum Assist Lift Hoist w/Single
Bridge Crane System
4 1 Filing LTEC 16 Electronic Lift Scale on Crown Fork Truck
BUILDING NO. 8-2 - (LAB) (4489) ---------------------------------------
- ----------------
LAB - 2ND FLOOR
1 Lot Furniture in Research & Development Office
2 1 H.P. Series II, Model 5890 Gas Chromatograph w/ Printer
BUILDING NO. 8-3 - (LAB) (4489) ---------------------------------------
- ----------------
LABORATORIES
1 Lot Desks & Chairs, Furniture, Files, Personal Computers, Etc.
2 Lot Scott Tensile Tester, Adhesion Tester, Shear Tester
Shear Tester, Cold Wallace Tester
3 1 United Tensile Tester Model UEC2.0-600LN2, serial 109406,
with complete computer system in CT Room (1994).
4 1 Braebender Model PL 2000 Plasticorder w/ Power Supply &
Spare Heads
5 1 Farrel Combination, 12" x 6" 2 Roll Mill & 12" x 6"
3 Roll Calender, Top Cap w/Gas Boiler
6 2 Thropp 12" x 6" 2 Roll Mill, Top Cap, S/N T-2534/1962
7 1 Motor Driven Blender / Baker Perkins
8 1 Farrel Lab Banbury Model BR - 25HP, With Instrumentations,
S/N A3381, 1959
9 Lot Assorted Testers, Inc. Hot Wallace Tester, Electronic
Scales, Lab Benches, Lab Press, Hot Plates, Chemical
Cabinets, Lab Extruder Perfected 1/2, (3) Blue M Ovens, and
(1) Precision Ovens, Cold Test Apparatus.
10 Lot High Voltage Lab, Desks, Files, Drafting Table,
Comparator, Benches, Scope Testers
12 Lot High Voltage Lab Special Built High Voltage Test
Equipment In Room
13 1 HiVoltage Impulse Tester (1996)
BUILDING N0. 9 - (BAN NO. 1, BOILER ROOM) -----------------------------
- --------------
BANBURY NO. 1 LINE (5412)--------------------------------------------
1 1 Banbury Mixer No. 1 Size 11 Top Load Bottom Drop
Mixer, 250/500 Horsepower w/Weighing System Conveyor
2 1 Eenco 2 Roll Mill # 1 84" x 26"/20", 200 Horsepower &
Soap Conveyor, Unitized, Direct Couple
3 1 Worthington Refrigeration Compressor 100 Horsepower
100 Ton w/Piping
4 Lot Electric Hoists,Monorail, Floor Scale.
COMPRESSOR ROOM & AIR DISTRIBUTION ----------------------------------
1 1 Worthington 125 Horsepower 2 Stage Air Compressor
w/Piping
2 1 Quincy Q1000 Rotary Air Compressor 200 Horsepower
w/Piping, S/N 31114-0-3483
PLANT PIPING --------------------------------------------------------
BOILER ROOM & POWER DISTRIBUTION ------------------------------------
1 3 Riley Industrial Boilers size 50,000 lbs/hr, Model 5530
2 Lot Plant Cooling Water Supply Pumps - 2 1500 GPM Worthington,
1 2500 Worthington, 1 Ingersol Rand
3 Lot Misc. Pumps, Plant Piping and Distribution
3A 1 Lincoln Welder
FIRE PROTECTION (SEP. BLDG.)----------------------------------------
1 1 2500 GPM Fairbanks Morse Fire Pump
2 1 300 HP Cummings Diesel Engine Model NHS 611, S/N 84095
ELECTRICAL DISTRIBUTION ---------------------------------------------
1 Lot Eight (8), 13,800 Volt Transformers, Capacitors,
Switchgear and Overhead Lines
BUILDING NO. 12 - (RUBBER STORAGE) 2-(6636)----------------------------
- ---------------
FIRST FLOOR STOCK STORAGE (6636)
1 1 Gardner Denver Electro Saver Model EAQSM-100 Horsepower Air
Cooled Air Comp. & Dryer, w/Piping for Coaters, S/N 96231
SECOND FLOOR STORAGE (6636)
Area currently not in use.
BUILDING NO. 13 - FIRST FLOOR -----------------------------------------
- ---------------
WIP AND MAINTENANCE STORAGE -----------------------------------------
1 2 Tape Decoring Machines
2 1 Lab Mill
3 Lot Miscellaneous Coater Application Parts
4 Lot 72" and 80" 24" Diameter Cooling Drums
5 1 Vinyl Master Roll Cutter (B12)
6 1 Cumberland 100 Horsepower Granulator, Size 20 (B12)
7 1 Reverse Roll Coater 60" No. 5 (B5) Being Rebuilt for No. 4
8 Lot Mill Reducers, 250 HP Motors & Controls (B12)
BUILDING NO. 13 SECOND FLOOR (15484) (MAINTENANCE STORAGE)-------------
1 Lot 3 Curing Ovens 25'x32'x 12' Not In Use - No Value
2 1 No. 10 Johnson 48" Surface Windup Machine (from Bldg 24)
3 2 Appleton D42SH105 Auto Cut-off Lathes (No. 9 & 10)
4 2 Lever 500 Auto Cut-off Lathes (No. 3 & No. 4)
5 1 Neno Teck Model TWS Serial N8931 Multi-Packer w/ Shrink
Wrap, Tub, & Carton Sealer
6 1 Set of Kneader Rotors
7 1 Portable Air Compressor
8 Lot Drives, Motors, Reducers
9 Lot Idlers, Conveyors, Lights, Sand Blasters
10 1 Star Burst Knotching Machine w/ Dies (Bldg. 25)
11 1 No. 4 Wrap King (Bldg. 25)
BUILDING NO. 15 - (MAIN OFFICE, BALLET) -------------------------------
- ---------------
FIRST FLOOR
Rental "Boston Ballet"
1 1 Tape Annealing Oven 30' x 20' x 10' (Soling)
SECOND FLOOR (MAIN OFFICE)
1 Lot Partitions, Metal & Wood Desks, 4-Drawer and 2-
Drawer Files. Lateral Files, Tables, Typewriters,
Calculators, Bookcases, Chairs, Furnishings, Lamps,
Copiers, Crendenza, Shelving, Safes, Fax Machines, etc.
2 Lot Computers: Pentum (36), 486 (39), 386 (17), Notebook (13),
Printers: Lazer (30), Dot Matrix (21), Ink Jets (28),
3 1 Fairchild-Davidson, Model 5008 Duplicator
4 1 Iteck 615E Platemaker, Model 200900A001, S/N 789
5 1 Challenge & Price 26" Paper Cutter, Screw Type
6 1 Challenge JO Paper Drill
GUARD HOUSE / CLINIC (SEP. BLDG.) -----------------------------------
1 Lot Time Clocks, Racks, Furniture etc.
BUILDING NO. 16-1 - (BALLET STORAGE) ----------------------------------
- -----------------
1 1 6' x 8' Scissor Lift In Floor
BUILDING NO. 16-2 - (BALLET STORAGE) ----------------------------------
- -----------------
BALLET STORAGE - 2ND FLOOR
BUILDING NO. 16-3 - (OFFICES & OFFICE SUPPLIES) (7920)----------------
- -----------------
BUILDING NO. 17-1 - (HAND PACK LOGS) ----------------------------------
- -----------------
1 1 Brookfield Model MB8 TC 500 Viscometer (1993) w/Printer,
S/N 92BML07250-3
2 1 Hand Lathe For Samples
3 1 Carrier Liquid Chiller for Top Coater System
Model 30HRO40, s/n D148872, 30 Ton w/Piping
4 1 HAKO Minute Man Model 800 Floor Sweeper (Bldg. 18, 19)
BUILDING NO. 18-1 - (GRANULATORS - MIXING) FIRST FLOOR ----------------
- -----------------
GRANULATOR AREA -----------------------------------------------------
1 1 Cumberland Pelletizer No. 8, 8", S/N 64050-7112
2 1 Toledo Dial Face in Floor Platform Scale
4 1 Goodman Slab Guillotine (From Cal. N0.1)
MIXING ROOM ---------------------------------------------------------
2 2 Petzholdt Adhesive Stainless Steel Mixer, 7' x 2 1/2'
Jacketed, Approx. 50 Horsepower w/Pump 600 Gallon,
Hemispherical, Bottom Drive (one Completely
Rebuilt in 1993 from B-13)
3 1 Silverson Adhesive Mixer, 175 Gallon, Small Unit For Primer
4 Lot Floor Scale, Small Pumps, Meters, Incline Conveyors,
Small Mixers, Pneumatic Cut-off Etc. In Room
5 Lot Two Programmable Batch Pumping Systems For Solvents
6 1 1000 Gallon Steel Storage Tank w/ Mixer & Pump
7 1 1700 Gallon Steel Storage Tank w/Mixer & Pump
8 2 5000 Gallon Steel Storage Tank w/Mixer & Pumps
9 Lot Nitrogen Blanket Protection System for Adhesive Mixers (199
STORAGE 2ND FLOOR (9933)--------------------------------------------
Area not in use (contains cyclone - Blackfriars Granulator)
1 Lot Used Office Equipment, Records Storage.
BUILDING NO. 19 - (TOPCOATERS) ----------------------------------------
- ---------------
TOPCOATERS
1 Lot Horizontal Steel Pin Racks For Bars (290)
2 Lot Vericle Pin Racks For Bars (32)
3 Lot Desks, Chairs, Files, Cabinets, Bookcases, Personal
Computers, Etc. (Mezzanine Office Area)
4 Lot No.5 Tape Coating Line Rebuilt in 1996 Consisting of:
1 Motor Driven Dual Unwind Stand 60"
2 Total Enclosed View Area Containing a Flash Oven with
3 A Base Coater Station & Interchangeable Printing Station
4 & a Permanent Reverse Roll Coating Station
5 Five Zone 100'x6' Total Enclosed Heating Oven
6 Tempering Drum
7 Log Windup w/edge guiding
8 Master Roll Guided Windup - Removable
9 Complete Display Control Panel and Drives
10 Remote Drum Pumping Station w/CO2 Fire Protection (1997)
5 Lot No.7 Tape Coating Line Rebuilt in 1995 Consisting of:
1 Motor Driven Dual Unwind Stand 60"
2 Total Enclosed View Area Containing an Advantz Guaging Unit
A Base Coater Station w/Flash Oven, & Reverse Roll Coating
Station
3 Five Zone 100'x6' Total Enclosed Heating Oven
4 Tempering Drum
5 Advantz Guage Unit
6 Log Windup
7 Complete Display Control Panel and Drives
6 Lot No.4 Tape Coating Line Consisting of:
1 Motor Driven Dual Unwind Stand 60"
2 Flash oven (Installed 1997)
3 Primer Station
4 oven 100'x6'x1'
5 Tempered heating Drum
6 New Modern DC Drives And Controls 1991
7 Lot No.6 Tape Coating Line Rebuilt in 1994 Consisting of:
1 Motor Driven Dual Unwind Stand 60"
2 Total Enclosed View Area Containing an Advantz Guaging Unit
A Base Coater Station w/Flash Oven and A
3 Five Zone 100'x6' Total Enclosed Heating Oven
4 Tempering Drum
5 Advantz Guage Unit
6 Log Windup
7 Complete Display Control Panel and Drives
8 3 Three Process Heat Annealing Ovens 10'x32'x15' (1 in '94)
9 Lot Hand Trucks, Pumps, Jib Crane, Electric Hoists
10 Lot Print Rolls, Engraved Rolls in Racks and Storage
11 1 Gas Fired Catalytic Oxidizer Incineration for all Coaters
12 1 Thermo Environmental Instruments, Inc. Model 51 Continuous
Total HydroCarbon Analyzer/w printer
BUILDING NO. 20-1 - (STORAGE) 12580 SQ. FT ----------------------------
- -----------------
Work-in-process Bar Storage
BUILDING NO. 20-2 - (MAINTENANCE & LAB) -------------------------------
- -----------------
1 2 Lab Type Mills, One Converted To Closed Loop Hot Oil "96
2 Lot Mixer, Fibre Tank, Hoist, Pump
3 1 Sanborn Centrifical Oil Seperator
4 1 Gardner Denver Electro Saver Model EAQSMB-100 H.P. Air Cool
Comp. & Dryer, w/Piping for Coaters, S/N 782881, Upgrade 19
Not is use for current manufacturing
BUILDING NO. 20-3, 20-4 - (HYDROTHERM, LAB) ---------------------------
- -----------------------
HYDROTHERM ROOM -----------------------------------------------------
PLASTIC LAB - 2 FLOORS ----------------------------------------------
1 Lot Ovens, Humid Chamber, Lab Benches, Scales, ACS Spectro-
Sensor Color System w/PC, Furniture, Etc. (3 Blue M, 1 Prec
Furniture, etc.
2 1 Perkins Elmer 1600 Series FTIR Infra Red Spectrophotometer
w/ Plotter, S/N 188499
BUILDING NO. 21 - (WAREHOUSE) -----------------------------------------
- ---------------
1A 1 Lantech Wrapper
2 Lot Warehouse Consisting of 348 Section Channel Type Steel
Pallet Shelving
3 Lot 4 Sections A Frame Roll Racks w/48 Embossing Rolls
and Traveling Hoist For Calender 10.
4 Lot Dry Vinyl Barring Line w/60" dual station Master Roll Unwin
Load Cell w/Air Brake Control Letoff, Pull Station, Hot Dru
Thermolator, Budzar Chiller, and Guided Bar Windup Station
5 1 Precision Quincy Gas Fired Hot Air Annealing Oven.
6 2 Auto-Equip Verticle Pin Rack Tilters. (1- For Barring Unit/
BUILDING N0. 22 - (Q.A. LAB & STORAGE) (10,000 SQ. FT.)----------------
- ---------------
QUALITY CONTROL LAB.
1 Lot USM Clicker w/ Cutting Dies, Magnified Light Inspection
Units, Precision Oven, Furniture in Lab
2 1 Tech Pro Moving Die Rheometer (1996)
3 1 Monsanto Rheometer, Model TM100, S/N 2654, W/Recorder
4 1 Packard Unwind Tester w/Computer
5 1 Model SRI Mooney Viscometer w/Load Cells & Accutest Strip
Chart Recorder and Digital Display
6 Lot Scott Tensile Tester, Instron Pull Tester Upgrade 1994,
Scales, Mooney Tester, 2 Dielectric Testers, Adhesion Test.
7 1 High Speed Unwind Tester HSU 1000 (1995)
8 1 Blue M Electric Oven size 336 (Telescoping Test) (1993),
S/N 33X-103-93, 343Degree C/650 Degree F, New.
9 Lot Precison oven (2), Blue M Ovens (2)
Balance of Room Manufacturing Storage
BUILDING NO. 24 - (REWIND) (20,000 SQ. FT.)----------------------------
- ---------------
1 1 Process Heating Co., Model 1906, 1.5 MM BTU w/Recorder,
Steam Heated Recirculating Oven for Rubber Products, Size
20' x 50' (1993)
2 1 4' Motor Driven Core Cutter (For Friction Tape Rebuilt
In 1989)
3 1 4' Multi Knife Slitter (For Friction Tape Rebuilt 1989)
4 1 Liner Rewind Machine with Monorail (1990)
5 1 No. 9 - 42" Center Windup Multi Knife Slitter w/Dodge
Unwind (Barring)
7 1 No. 7- 60" Surface Windup Machine (Barring)
8 1 60" Rewind & Inspect Machine w/Drive
9 1 No. 5- 60" Duplex Slitter w/Rewind & Control w/printer(96)
11 1 Special Built Abrasion Protector Pad Rewind Machine
Built in House (1993)(1995) w/SoCo Case Sealer
12 1 18" Motor Driven Pad Cut-off
13 2 Special Built Rewinders
14 1 Table Top Cut Roll Rewinder
15 Lot Electric Hoists, Curing Drums. Roll Carriages etc.
16 4 Assorted Toledo & Fairbanks Platform Scales
17 1 Electronic Floor Scale (1994)
18 1 Plymouth Design 1994 Liner Retrieval Equipment w/
Edge-guided M.R. Brake Control Letoff, Liner Windup,
Separator Letoff, 2 Roll Facing Station, Tempered Drums,
Menzel Tension Control Windup, Three Zone Area Thermolators
Hot Oil Heating System 1996. Increased HP. , Hydraulic Gap
Increase Embossing Roll Drives, Gears, Sprockets, w/Electri
Remote Display Control Unit (1997)
BUILDING NO. 25-1, 25-2 - (TAPE PACKAGING & KIT ROOM) -----------------
- -----------------------
FIRST FLOOR - CUT AND PACK ROOM -------------------------------------
1 1 No.14 Lathe Cevenini Model ES9 Automatic Single Log Slitter
New 1993 S/N NA.
2 1 No. 1 Shanklin Model S-3CL L Sealer w/Model T6XL Shrink
Tunnel & Conveyor
6 1 Autobagger Automasted Packaging Systems, Model H-15
7 Lot Shanklin Auto L Sealer Model, A-26A S/N A9114 (1991),
Shanklin Shrink Tunnel Model F6XL, Label-Aire Model 2111M
(1991), Tub & Carton Sealer
8 1 No. 3 C & K Wrap King Wrapper, s/n 3373, w/Belts,
Model DW-2S, S/N 3373 w/ Carton Sealer
12 1 Syntron PFM-152-10 Feeder, w/Syntron BE-6-12 Belt Elevator,
Conveyor, Vibratory Bowl Feeder
13 1 Model 1601A Weldotron Combo Wrapper, Sealer, Shrink Tunnel,
Autolabe labeler, Model 110RH, and Conveyor & Carton Sealer
16 1 No. 1 Turret Lathe Cevenini ET8B 4 Station Auto Lathe
S/N 022888ET8 w/ Conveyor (5/16/89), Bemistaper
Carton Sealer
17 1 Crystal Pack w/Conveyor & Carton Sealer
18 Lot No. 2 Turet Lathe Cevenini ET8A 4 Station Auto Lathe (1991)
S/N 02358-88-ET8 w/ Rotary Index Feeder, Conveyor,
No. 2 Wrap King, Label-Aire Labeler, Carton Sealer,
Conveyors, Model S-3CL-L Sealer, T-6XL Shrink Tunnel
18 1 No. 1 C&K DW 2 Wrap King w/ Friction Roll Breaker,
Conveyor, Carton Sealer & Willett Label Jet 2300 for Fric.
19 2 Lever 500 Auto Cut-off Lathes (No. 7 & 8)
20 2 Lever 500 Auto Cut-off Lathes (No. 5 & 6)
20A 1 1 Pin Rack Hydraulic Lift Table
21 Lot 1 Semi Automatic Slitter, Two (2) Hand Lathe Tape Slitters
22 Lot Centralized Conveyor System For All Lines (inc. B21)
24 1 HAKO Minute Man Model 800 Floor Sweeper (Bldg. 24, 25, 27)
25 1 HAKO Minute Man Model 320 Floor Scrubber (Bldg. 24, 25, 27)
26 Lot Hanikson Compressed Air Drier, Miscellaneous Tanks, Tables,
26A Lot Misc Tanks and Tables
27 Lot Office w/Furniture on Mezzanine
SECOND FLOOR KIT ROOM - PACKAGING STORAGE ---------------------------
1 Lot Big Joe Stacker, Handling Equipment, Shelving, Tape
Shooters, Strap Truck, Fans Factory Carts, Scale,
Etc. On Floor
BUILDING NO. 26 - BAR STORAGE & PLASTIC OFFICES -----------------------
- -----------------
FIRST FLOOR WIP BAR STORAGE
SECOND FLOOR OFFICES ------------------------------------------------
1 Lot Furniture in Plastic Office, Desks, Chairs, Files, etc.
BUILDING NO. 28 - (CAL. 8, 10, & 11) ----------------------------------
- -----------------
1 Lot Young Bag Dumping, w/Screen, Hoppers, Blowers,
Scales, Etc. for Lines 5 + 8 + 10
CALENDER NO. 8 LINE -------------------------------------------------
1 1 Young Feed Hopper
2 1 Ribbon Single Screw Pre-Blender w/Scales
3 1 Young Ribbon Holding Blender w/Scales
4 1 Farrel 11 Slide Banbury Mixer 500/250 Horsepower
& Conveyor.
5 1 Bolling 82"x24" /20" 2 Roll Feed Mill w/Conveyor
& Metal Detector, Foote Reducer
6 1 Royle 8 1/2 Extruder/Strainer 125 Horsepower, S/N
4641, w/Conveyor
7 1 Bolling 84"x26"/20" 2 Roll Mill Pad Mounted Unitized w/Con
Detector & Reducer & Wig Wag Feed
8 1 Farrell 68"x24" Inverted L 4 roll Calender w/Crossing,
S/N 49092, 125 H.P. Upgrade/w 4 Quad DC Controller 1996,
Dynamic Braking Added (1997)
9 1 Dual Roll Let Off
10 1 Automatic Screw Driven Trim Knives
11 2 Trim Return Units w/Conveyor Belt Feed Upgrade (1997)
12 1 Facing Station w/Thermolator Temperature & Pressure Control
13 1 3 Can 72"x24" Cooling Section w/Chiller
15 1 Revised Dust Box with improved controls 12/97
16 1 Accumulator
17 1 Trim Section
17A 1 New Menzel Dual Station Windup (1992) w/Monorail and
Scale Weighing Unit. Improved Tension Control 1/98
18 1 Carrier Chilling System for Calender No. 8 Model VE50
19 3 Video Display Monitors
20 1 3 Tension Control Air Brake w/Manual Alignment Guide At
Cal. Windup For Letoff Control Of Separator & Paper Insert
20A 1 Hot Oil Boiler and Pumps For Heating in Bldg 20
CALENDER ROOM
1 1 Goodman 30" Hydraulic Guillotine
2 Lot Scales, Dust Collector, Palletainers, Trucks
Electric Hoists, Roll Dollies, Monorail System,
24 " and 36" Curing Drums - 15 New Drum/Carriage (1996)
CALENDER NO. 11 LINE FEED SYSTEM------------------------------------
2 1 Young Feed Hopper w/weigh Scale
3 1 Single Ribbon Preblender w/Hopper - 5000 lb. Capacity
4 1 Ribbon Holding Blender w/ Scale - 5000 lb. Capacity
5 1 Farrel 11 Slide Banbury w/Scales 500/250 HP, w/Conveyor to
CALENDER NO. 10 LINE (INCLUDES COMPOUNDING ROOMS) -------------------
1 2 Young Pneumatic Feed Hoppers w/Tanks & Weigh Scales, Load
Cells on Blow Tanks in 1997
2 2 Ribbon Pre-blenders, Single Screw 3000 lb Capacity
w/Hoppers
3 2 Young Ribbon Holding Blenders 15 Horsepower w/175
lb Weigh Scales
4 2 Farrel #3D Banbury Mixers, w/Bucket Elevators &
Conveyors 300 Horsepower, Remote Auto Feed 1997
5 2 Bolling 60"x22"/20" 2 Roll Mills, 100 Horsepower, s/n
10594, Unitized (Vaughn, Unknown Mfg.)
6 1 Royle 3A Extruder/Strainer, s/n 4659, 3 1/2 (Improve '95)
7 Lot Conveyors & Metal Detectors plus Non Ferros Detector (93)
8 1 Bolling 60" 20" 2 Roll Mill, S/N 714
9 Lot Conveyor Oscillating Wig Wag Feed
10 1 Farrel F Type 82"x28" 4 Roll Calender w/Cross
Axis #3 Roll, Roll Bending #4 Roll, Hot Oil Rolls
11 1 Lembo Stripper Section
12 1 Embossing Roll
13 1 Lembo Relaxer
14 1 Trim Section, Lembo
15 1 LFE Profit Master 5001 Film Guage Control Unit
16 1 Lembo 82"x24" 6 Can Cooling Section w/ Spiral Wound Coolin
17 1 G.E. Calender Speed Variator - Control
18 1 Lembo Trim Section, w/Cold Trim Return To Mill 1997
19 1 Lembo Fly Knife Turret Wind-up 84"x24"
20 1 American HydroTherm Hot Oil System (Pumps on Floor, Boiler
21 1 York 75 Horsepower Chiller, (Double End Tandem)
23 1 Semi Automatic Mandrel Remover 1997
24 Lot Electric Switch Gear & Controls & Printers
BUILDING NO. 29 - (CALENDER CHILLERS & SILICONE ROOMS) ----------------
- -----------------
CALENDER CHILLERS----------------------------------------------------
SILICONE ROOM -------------------------------------------------------
1 1 Farrell 2 Roll Mill 36" x 16" w/Vari Drive, 60
Horsepower Unitized
2 1 Silicone 24 " Ross Mixer S/N 6 (8/90)
3 Lot Scales,Goodman Bench Guillotine Cutter in Room
4 1 Edward Liquid Chiller Model CD-10-AHP
5 Lot Silicone Extrusion Line Consisting of Royal Vent
Type Extruder, Marker, Conveyor Oven, Tension Stand,
Cooling Conveyor & Wind-up
6 1 Westinghouse 10 Horsepower Tank Mounted Air Compressor
w/Piping (For Silicone Unit)
BUILDING NO. 30 - (CAL. 1, KNEADER, MASTIC, SOLVENT RECOVERY) ---------
- ---------------
CALENDER NO. 1 LINE -------------------------------------------------
1 1 Electric Stacker
2 1 Banbury 4A Slide Door 300/150 Horsepower w/Conveyor
3 1 Barry 60"x22"x20" 2 Roll Mill, 150 Horsepower
4 1 Farrel 60"x22"x20" 2 Roll mill w/Blender, Bull Gear
w/Feed Conveyor
5 1 Motor Driven Auto Guide Unwind 60"
6 1 Birmingham 3 Roll Calender 66"x22" w/Hydraulic
Pressure Roll
7 1 60" Embossing Station
8 1 4-60" Cooling Can Section w/Acme Chiller
9 1 Dust Box w/Brushes
10 1 Accumulator
11 1 Dual Wind-up
12 Lot Hoists, Dollies, Furniture, Scales, Air Compressor
13 1 Bolling 60"x20" 2 Roll Mill, 100 Horsepower (not in Service
KNEADER -------------------------------------------------------------
1 1 Amp Top Loader Kneader/Mixer, s/n 11742, 50 HP with
Conveyor.
2 1 Spadone 30" Hydraulic Slab Chopper
3 Lot Scales, Drum Lifter, Monorail System, Storage Trays
4 Lot Leaf Trucks For Kneader/Mastics (7) (1996)
5 1 Filling LTEC 16 Lift Truck Scale (1996)
MASTIC --------------------------------------------------------------
3 1 USM #8 Hydraulic Clicker
4 Lot Molds For Arc Proof Boot & Crotch At Supplier (1997)
SOLVENT RECOVERY CONTROLS -------------------------------------------
1 1 G.D. 50 Horsepower Electric Screw Rotary Air Compressor
w/Air Drier, w/Piping
2 1 Solvent Recovery System (Outside) consisting of Heat
Exchanger, 3 Stainless Steel Tanks, Condensor, & Inside
Controls for Top Coating System, Activated Carbon Bed,
Replace w/Higher Capacity Condenser & Decanter 1997
3 1 Richards-VOC Hydrocarbon Analyzer Monitoring System
w/Computer Located in Bldg. 26-2
4 1 Modified Solvent Recovery Deaerator System For Solvent
Recovery (1992)
BUILDING NO. 31, 32 - (RAW MATERIAL STORAGE) --------------------------
- -------------------
1 Lot 174 Sections Pallet Storage Type Shelving
in Warehouse
2 Lot Floor Scale, Office Furniture, Material
Handling Equipment etc.
BUILDING NO. 33, 34, 35 - (FINISH GOODS, SHIPPING) --------------------
- -----------------------
CENTRAL SHIPPING
2 Lot Office Furniture in Shipping & Prod. Control Offices, Floor
Scales, Labeling Equipment in Separate Room.
2A 1 Mima Auto Wrapper
3 Lot Approximately 310 Sections of assorted adjustable Pallet
Shelving
4 2 Industrial 24'x33'x11' Heat Curing Ovens (For Cold Storage)
5 Lot American Modified 100 Ft. x 25 Ft. Electrified Double Track
Monorail System w/Trans-Beam Electric Hoist for Batteries
6 1 Tennant Scrubber 320 Floor Sweeper S/N 10482
7 1 HAKO Minute Man Model 800 Floor Sweeper
8 1 KAKO Minute Man Model 320 Floor Scrubber
BUILDING NO. 47 - (PLANT GENERAL - NOT A BUILDING) --------------------
- ---------------
YARD (SIL0S) --------------------------------------------------------
1 5 180,000 lb. Steel Silo Outside & Railroad off
Loading, Pumps, Blowers, Piping, Etc.
2 3 180,000 lb. Steel Silos, Pumping, Etc. (Upgrade 1995)
LIQUID STORAGE TANKS ------------------------------------------------
1 1 6,000 gal. Above Ground Tank Area Bldg. 6
2 3 10,000 gal Above Ground Tanks Area Bldg. 25
3 3 6,000 gal. Above Ground Tanks Area Bldg. 31
4 3 10,000 gal. Above Ground Solvent Recovery Tanks
MATERIAL HANDLING
1 2 Butler Systems -------------------------------------------
2 Lot Leased Fork and Pallet Trucks Revised 1995 ----------------
MISCELLANEOUS (BLDGS, FENCE, DAM)
1 Lot Misc. Sheds, Tank Farm, Pump Houses Etc.-------------------
2 Lot Fences-----------------------------------------------------
3 1 Reservoir Dam----------------------------------------------
- -----------------------------------------------------------------------
************TOTAL LEASED *********************************************
- ------------
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> NOV-27-1998
<PERIOD-END> MAY-29-1998
<CASH> 4
<SECURITIES> 0
<RECEIVABLES> 11,041
<ALLOWANCES> 390
<INVENTORY> 11,457
<CURRENT-ASSETS> 24,397
<PP&E> 38,743
<DEPRECIATION> 18,807
<TOTAL-ASSETS> 47,719
<CURRENT-LIABILITIES> 22,432
<BONDS> 0
0
0
<COMMON> 2,073
<OTHER-SE> 7,036
<TOTAL-LIABILITY-AND-EQUITY> 47,719
<SALES> 32,974
<TOTAL-REVENUES> 32,974
<CGS> 24,611
<TOTAL-COSTS> 30,986
<OTHER-EXPENSES> 34
<LOSS-PROVISION> 34
<INTEREST-EXPENSE> 851
<INCOME-PRETAX> 1,103
<INCOME-TAX> 446
<INCOME-CONTINUING> 657
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 657
<EPS-PRIMARY> .32
<EPS-DILUTED> .30
</TABLE>
