SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
(Mark One)
{X} QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended October 2, 1994
OR
{ } TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition period from _________ to _________
Commission file number 1-4148
REEVES INDUSTRIES, INC.
_____________________________________________________
(Exact name of registrant as specified in its charter)
Delaware 57-0735790
_______________________________ _____________________
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
Highway 29 South
Post Office Box 1898
Spartanburg, S. C. 29304
________________________________________ _________
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (803)576-1210
_________________________________________________________________
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of
the Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes x No
35,021,666 shares of $.01 par value common stock of the Registrant
were outstanding at the close of business on November 15, 1994.
<PAGE>
REEVES INDUSTRIES, INC. AND SUBSIDIARY
INDEX
PART I. FINANCIAL INFORMATION PAGE
Item 1. Financial Statements (Unaudited)
Condensed Consolidated Balance Sheet as of
December 31, 1993 and October 2, 1994 3
Condensed Consolidated Statement of Income
for the quarters and nine months ended
September 26, 1993 and October 2, 1994 5
Condensed Consolidated Statement of Changes
in Stockholder's Equity for the nine months
ended October 2, 1994 6
Condensed Consolidated Statement of Cash
Flows for the nine months ended September 26,
1993 and October 2, 1994 7
Notes to Condensed Consolidated Financial
Statements 8
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations 13
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 17
SIGNATURES 18
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CONDENSED CONSOLIDATED BALANCE SHEET
REEVES INDUSTRIES, INC. AND SUBSIDIARY
(in thousands, except share data)
December 31, October 2,
1993 1994
____________ _________
ASSETS
Current assets
Cash and cash equivalents (including
cash equivalents of $7,222 and $487) $ 12,015 $ 9,039
Accounts receivable, less allowance for
doubtful accounts of $1,467 and $1,437 45,925 52,149
Inventories (Note A) 33,969 39,193
Deferred income taxes 5,442 5,442
Other current assets 3,300 3,066
--------- --------
Total current assets 100,651 108,889
--------- --------
Property, plant and equipment, at cost
less accumulated depreciation (Note B) 51,415 69,286
Unamortized financing costs, less
accumulated amortization of $1,177
and $1,666 3,946 3,457
Goodwill, less accumulated amortization
of $9,431 and $10,436 43,357 42,352
Deferred income taxes 2,153 1,004
Other assets (Note C) 1,503 4,031
--------- --------
Total assets $ 203,025 $229,019
========= ========
<PAGE>
CONDENSED CONSOLIDATED BALANCE SHEET (CONTINUED)
REEVES INDUSTRIES, INC. AND SUBSIDIARY
(in thousands, except share data)
December 31, October 2,
1993 1994
____________ _________
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities
Accounts payable $ 22,810 $ 24,722
Accrued expenses and other
liabilities 20,011 21,014
--------- --------
Total current liabilities 42,821 45,736
Long-term debt (Note D) 132,677 147,233
Deferred income taxes 4,367 4,367
Other liabilities 1,749 1,709
--------- --------
Total liabilities 181,614 199,045
--------- --------
Stockholder's equity (Note E)
Common stock, $.01 par value, 50,000,000
shares authorized; 35,021,666 shares
issued and outstanding 350 350
Capital in excess of par value 5,099 5,099
Retained earnings 19,964 26,681
Equity adjustments from translation (4,002) (2,156)
--------- --------
21,411 29,974
--------- --------
Commitments and contingencies
--------- --------
Total liabilities and
stockholder's equity $ 203,025 $229,019
========= ========
See notes to condensed consolidated financial statements.
<PAGE>
CONDENSED CONSOLIDATED STATEMENT OF INCOME
REEVES INDUSTRIES, INC. AND SUBSIDIARY
(in thousands, except per share data)
Quarter Ended Nine Months Ended
__________________ __________________
Sept 26, Oct 2, Sept 26, Oct 2,
1993 1994 1993 1994
-------- -------- -------- --------
Net sales $ 66,654 $ 73,790 $205,331 $227,809
Cost of sales 51,954 60,214 161,465 182,179
-------- -------- -------- --------
Gross profit on sales 14,700 13,576 43,866 45,630
Selling, general and
administrative expenses 9,104 6,429 25,677 22,148
-------- -------- -------- --------
Operating income 5,596 7,147 18,189 23,482
Other income (expense)
Other income, net 38 11 86 35
Interest expense and
amortization of
financing costs and
debt discounts (4,054) (4,114) (12,300) (12,304)
-------- ------- ------- -------
(4,016) (4,103) (12,214) (12,269)
-------- ------- ------- -------
Income before income
taxes 1,580 3,044 5,975 11,213
Income taxes 541 1,373 1,818 4,496
-------- -------- -------- --------
Net income $ 1,039 $ 1,671 $ 4,157 $ 6,717
======== ======== ======== ========
Earnings per common
share (Exhibit 11)
Primary and fully
diluted
Net income $ .03 $ .05 $ .12 $ .19
======== ======== ======== ========
Weighted average number
of common shares
outstanding
Primary and
fully diluted 34,968 35,022 34,968 35,022
====== ====== ====== ======
See notes to condensed consolidated financial statements.
<PAGE>
<TABLE>
CONDENSED CONSOLIDATED STATEMENT OF CHANGES
IN STOCKHOLDER'S EQUITY
REEVES INDUSTRIES, INC. AND SUBSIDIARY
(in thousands)
<CAPTION>
Common Stock Capital Equity
$0.01 Par Value in Excess Adjustments
--------------- of Retained From
Shares Amount Par Value Earnings Translation Total
______ ______ _________ ________ ___________ _____
<S> <C> <C> <C> <C> <C> <C>
Balance at
December 31,
1993 35,022 $350 $5,099 $ 19,964 $ (4,002) $21,411
Net income 6,717 6,717
Translation
adjustments 1,846 1,846
------ ---- ------ -------- -------- -------
Balance at
October 2,
1994 35,022 $350 $5,099 $ 26,681 $ (2,156) $29,974
====== ==== ====== ======== ======== =======
</TABLE>
See notes to condensed consolidated financial statements.
<PAGE>
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
REEVES INDUSTRIES, INC. AND SUBSIDIARY
(in thousands)
Nine Months Ended
______________________
Sept 26, Oct 2,
1993 1994
_________ _________
OPERATING ACTIVITIES
Net income $ 4,157 $ 6,717
Adjustments to reconcile net income
to net cash provided by operating
activities
Depreciation and amortization 6,919 7,743
Changes in operating assets and
liabilities (1,819) (9,501)
Translation adjustments (510) 230
-------- -------
NET CASH PROVIDED BY OPERATING ACTIVITIES 8,747 5,189
-------- -------
INVESTING ACTIVITIES
Purchases of property, plant,
and equipment (6,555) (23,077)
Other (536)
-------- -------
NET CASH USED BY INVESTING ACTIVITIES (7,091) (23,077)
-------- -------
FINANCING ACTIVITIES
Net borrowings on revolving loan 14,480
-------- -------
NET CASH PROVIDED BY FINANCING ACTIVITIES 14,480
-------- -------
EFFECT OF EXCHANGE RATE CHANGES ON CASH (208) 432
-------- -------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 1,448 (2,976)
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD 4,515 12,015
-------- -------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 5,963 $ 9,039
======== =======
See notes to condensed consolidated financial statements.
<PAGE>
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
REEVES INDUSTRIES, INC. AND SUBSIDIARY
OCTOBER 2, 1994
GENERAL
Reeves Industries, Inc., incorporated in Delaware in 1982 ("Reeves"),
a wholly-owned subsidiary of Hart Holding Company Incorporated
("Hart Holding"), is a holding company whose principal asset is the common
stock of its wholly-owned subsidiary, Reeves Brothers, Inc. ("Reeves
Brothers"). Reeves Brothers is a diversified industrial company with
operations in two principal business segments, industrial coated fabrics,
conducted through its Industrial Coated Fabrics Group ("ICF"), and apparel
textiles, conducted through its Apparel Textile Group ("ATG").
The accompanying unaudited condensed consolidated financial statements
of Reeves have been prepared in accordance with the instructions to
Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not
include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. For such
information, refer to the consolidated financial statements and footnotes
thereto included in Reeves' annual report on Form 10-K for the year ended
December 31, 1993, as filed with the Securities and Exchange Commission on
March 31, 1994. The condensed consolidated financial statements so
presented are, in the opinion of management, inclusive of all adjustments
(consisting only of normal recurring adjustments) considered necessary for
a fair presentation of financial position as of October 2, 1994, and the
results of operations and cash flows for the quarters and nine months
ended September 26, 1993 and October 2, 1994.
Certain prior-year amounts have been reclassified to conform to the
current-year presentation.
<PAGE>
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
REEVES INDUSTRIES, INC. AND SUBSIDIARY
OCTOBER 2, 1994
NOTE A - INVENTORIES
Inventories at December 31, 1993 and October 2, 1994, were comprised
of the following (in thousands):
December 31, October 2,
1993 1994
____________ _________
Raw materials $ 6,815 $ 9,108
Work in process 8,792 10,603
Manufactured and finished goods 18,362 19,482
-------- -------
$ 33,969 $39,193
======== =======
Approximately 27% and 31% of Reeves' inventories at December 31, 1993
and October 2, 1994, respectively, are valued using the last-in, first-out
("LIFO") method. Interim LIFO determinations, including those as of
October 2, 1994, are based on management's estimates of expected year end
inventory levels and costs.
NOTE B - PROPERTY, PLANT AND EQUIPMENT
The increase in property, plant and equipment from December 31, 1993
represents additions primarily to increase capacity and effect cost
reductions and productivity improvements in the coated fabrics sector of
Reeves' business, to develop weaving capacity for the automotive airbag
materials business and to complete the modernization and selectively
increase the capacity of ATG's operations.
<PAGE>
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
REEVES INDUSTRIES, INC. AND SUBSIDIARY
OCTOBER 2, 1994
NOTE C - LONG-TERM OTHER ASSETS
The increase in long-term other assets from December 31, 1993 is due
primarily to pre-operating costs related to the new weaving facility in
Spartanburg, South Carolina which will weave automotive airbag fabric for
the airbag material market. The gross amount of capitalized
pre-operating costs at December 31, 1993 and October 2, 1994 were
approximately $0.7 million and $2.4 million, respectively.
NOTE D - LONG-TERM DEBT
Long-term debt at December 31, 1993 and October 2, 1994, consisted of
the following (in thousands):
December 31, October 2,
1993 1994
____________ ________
11% Senior Notes due July 15, 2002,
net of unamortized discount of
$747 and $681 $121,753 $121,819
13 3/4% Subordinated Debentures due
May 1, 2000, net of unamortized
discount of $76 and $66 10,924 10,934
Revolving loan payable to bank 14,480
________ ________
$132,677 $147,233
======== ========
Reeves is required to make sinking fund payments with respect
to the 13 3/4% Subordinated Debentures of $6,000,000 on May 1, 1999
and $5,000,000 on May 1, 2000.
<PAGE>
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
REEVES INDUSTRIES, INC. AND SUBSIDIARY
OCTOBER 2, 1994
On August 7, 1992, Reeves and Reeves Brothers entered into a credit
agreement with a group of banks, which was amended in 1993 (the "Credit
Agreement"), and which provides Reeves and Reeves Brothers with an
aggregate $35,000,000 revolving line of credit (the "Revolving Loan")
and letter of credit facility. Currently, the Revolving Loan bears
interest at the Alternative Base Rate (defined below) plus 1 1/4% or
Eurodollar Rate plus 2 1/4%, at the election of the borrower. The
Alternative Base Rate is defined as the higher of the Prime Rate (7 3/4%
at October 2, 1994), Base CD Rate plus 1%, or the Federal Funds Effective
Rate plus 1/2%. The applicable rates above the Alternative Base Rate and
Eurodollar Rate decline based on a ratio of earnings to fixed charges, as
defined. The Credit Agreement terminates on December 31, 1995. The Credit
Agreement is secured by Reeves Brothers' accounts receivable and
inventories. As of October 2, 1994, Reeves had available borrowings,
net of $1,276,000 of outstanding letters of credit, of $19,244,000.
A commitment fee of 1/2% per annum is required on the unused portion of
the Revolving Loan.
The 11% Senior Notes, Credit Agreement, and 13 3/4% Subordinated
Debentures contain certain restrictive covenants with respect to Reeves
and Reeves Brothers including, among other things, maintenance of working
capital, limitations on the payment of dividends, the incurrence of
additional indebtedness and certain liens, restrictions on capital
expenditures, mergers or acquisitions, investments and transactions with
affiliates, and compliance with certain financial tests and limitations.
Refer to Reeves' Annual Report on Form 10-K for the year ended
December 31, 1993, as filed with the Securities and Exchange Commission on
March 31, 1994, for a more complete description of the 11% Senior Notes,
the Credit Agreement and the 13 3/4% Subordinated Debentures.
<PAGE>
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
REEVES INDUSTRIES, INC. AND SUBSIDIARY
OCTOBER 2, 1994
NOTE E - STOCKHOLDER'S EQUITY
On January 26, 1994, the Board of Directors approved a non-qualified
stock option agreement between Reeves and the Chairman of the Board of
Directors. The agreement grants an option to purchase up to 3,800,000
shares of common stock of Reeves, par value $.01 per share, and has an
expiration date of December 31, 2023. The option is exercisable at $.56
per share for 1,400,000 shares (exercisable immediately), $.75 per share
for 1,400,000 shares (exercisable one year from grant date) and $1.00 per
share for 1,000,000 shares (exercisable two years from grant date).
On March 9, 1994, Hart Holding organized Reeves Holdings, Inc. as a
wholly-owned subsidiary ("Reeves Holdings") through a capital contribution
of $1,000. Reeves Holdings was formed for the purpose of holding all of the
outstanding common stock of Reeves. On March 31, 1994, Reeves Holdings
filed a Registration Statement on Form S-1 under the Securities Act of 1933,
as amended on June 9, 1994, for the purpose of offering Senior Discount
Debentures due 2006 anticipated to yield proceeds of $100,000,000. As of
November 15, 1994, Reeves Holdings has not issued the Senior Discount
Debentures and Reeves' common stock has not been contributed to Reeves
Holdings.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following table and the discussion which follows present Reeves'
sales and operating income by segment for the quarters and nine months ended
September 26, 1993 and October 2, 1994 (in thousands):
Quarter Ended Nine Months Ended
___________________ _____________________
Sept 26, Oct 2, Sept 26, Oct 2,
1993 1994 1993 1994
________ ________ ________ ________
Net Sales:
Industrial Coated
Fabrics Group $32,202 $36,742 $ 99,334 $114,796
Apparel Textile Group 33,933 36,408 104,606 111,008
Other 519 640 1,391 2,005
_______ _______ ________ ________
Total Net Sales $66,654 $73,790 $205,331 $227,809
======= ======= ======== ========
Operating Income:
Industrial Coated
Fabrics Group $ 6,388 $ 7,137 $ 19,818 $ 22,323
Apparel Textile Group 2,308 2,650 7,114 9,561
Other 72 (13) 220 172
Corporate Expenses (3,172) (2,627) (8,963) (8,574)
_______ _______ ________ ________
Total Operating
Income $ 5,596 $ 7,147 $ 18,189 $ 23,482
======= ======= ======== ========
Operating Income as a
Percent of Net Sales 8.4% 9.7% 8.9% 10.3%
==== ==== ==== =====
<PAGE>
THREE MONTHS ENDED SEPTEMBER 26, 1993 COMPARED WITH
THREE MONTHS ENDED OCTOBER 2, 1994
NET SALES
- ---------
Reeves' total net sales increased 10.7% for the third quarter of
1994 compared to the third quarter of 1993. ICF's net sales represented
49.8% of Reeves' total net sales for the third quarter of 1994 compared to
48.3% for the comparable period in 1993. ATG net sales represented 49.3%
of Reeves' total net sales for the third quarter of 1994 compared to 50.9%
for the comparable period in 1993. Other net sales represented 0.9% of
Reeves' total net sales for the third quarter of 1994 compared to 0.8% for
the comparable period in 1993.
ICF's net sales increased 14.1% during the third quarter of 1994
compared to the third quarter of 1993. ICF's net sales increased primarily
due to higher unit volume in the coated automotive airbag material and
offset blankets product lines. These increases were partially offset by a
unit volume decrease in the coated fabrics product line, primarily military
related business.
ATG's net sales increased 7.3% during the third quarter of 1994
compared to the third quarter of 1993. ATG's net sales increase reflects
growth in unit volume in the finished goods and greige divisions.
OPERATING INCOME
- ----------------
Operating income for the third quarter of 1994 was $7.2 million
compared to $5.6 million for the third quarter of 1993. As a percentage of
net sales, operating income increased to 9.7% of net sales for the third
quarter of 1994 compared to 8.4% for the same period of 1993.
ICF's operating income for the third quarter of 1994 increased by
11.7% as compared to the third quarter of 1993. ICF's operating income
increased primarily as a result of higher unit volume in the coated
automotive airbag material and offset blankets product lines and
manufacturing cost reductions. In addition, foreign currency exchange gains
resulted from the weakening of the Italian Lira against most other
currencies. These increases were partially offset by a decline in sales of
the coated fabrics product line, primarily military related business.
ATG's operating income for the third quarter of 1994 increased by
14.8% as compared to the third quarter of 1993. ATG's business benefitted
generally from higher volume in the finished goods division and an increase
in gross profit in the greige division while its finishing division
experienced a decline in gross profit. In addition, the greige goods
division's margins were positively affected as a result of the conversion of
the Woodruff, SC facility from a weaving operation to a captive yarn mill.
<PAGE>
Corporate expenses decreased 17.2% during the third quarter of 1994
compared to the third quarter of 1993. The most significant factors were
lower pension costs and lower management fees from Hart Holding.
NINE MONTHS ENDED SEPTEMBER 26, 1993 COMPARED WITH
NINE MONTHS ENDED OCTOBER 2, 1994
NET SALES
- ---------
Reeves' total net sales increased 10.9% for the first nine months of
1994 compared to the first nine months of 1993. ICF's net sales represented
50.4% of Reeves' total net sales for the first nine months of 1994 compared
to 48.4% for the comparable period in 1993. ATG net sales represented 48.7%
of Reeves' total net sales for the first nine months of 1994 compared to
50.9% for the comparable period in 1993. Other net sales represented 0.9%
of Reeves' total net sales for the first nine months of 1994 compared to
0.7% for the comparable period in 1993.
ICF's net sales increased 15.6% during the first nine months of 1994
compared to the first nine months of 1993. ICF's net sales increased
primarily due to higher unit volume in the coated automotive airbag material
and offset blankets product lines. These increases were partially offset by
a decrease in the coated fabrics product line, primarily military related
business.
ATG's net sales increased 6.1% during the first nine months of 1994
compared to the first nine months of 1993. ATG's net sales increase
reflects growth in unit volume in the finished goods division offset by a
decrease in unit volume in the greige goods division.
OPERATING INCOME
- ----------------
Operating income for the first nine months of 1994 was $23.5 million
compared to $18.2 million for the first nine months of 1993. As a
percentage of net sales, operating income increased to 10.3% of net sales
for the first nine months of 1994 compared to 8.9% for the same period of
1993.
<PAGE>
ICF's operating income for the first nine months of 1994 increased by
12.6% as compared to the first nine months of 1993. ICF's operating income
increased primarily as a result of higher unit volume in the coated
automotive airbag material product line and manufacturing cost reductions.
In addition, foreign currency exchange gains resulted from the weakening of
the Italian Lira against most other currencies. These increases were
partially offset by a decline in prices in coated automotive airbag material
products and a decline in sales of the coated fabrics product line,
primarily military related business.
ATG's operating income for the first nine months of 1994 increased by
34.4% as compared to the first nine months of 1993. This increase is a
result of increased sales volume in the finished goods division, a change in
the greige product mix to "fancier" styles and manufacturing cost reductions
in the finishing division. The manufacturing cost reductions resulted
principally from prior capital investments in more technologically advanced
equipment. In addition, the greige goods division's margins were positively
affected as a result of the conversion of the Woodruff, SC facility
from a weaving operation to a captive yarn mill.
Corporate expenses decreased 4.3% during the first nine months of 1994
compared to the first nine months of 1993. The decrease resulted primarily
from a gain related to the settlement of a pension obligation of a
previously discontinued operation and lower management fees from Hart
Holding. These items were partially offset by higher outside consulting
fees related to strategic planning and legal fees.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
Reeves is required to make sinking fund payments with respect to the
13 3/4% Subordinated Debentures of $6,000,000 on May 1, 1999 and $5,000,000
on May 1, 2000.
On August 7, 1992, Reeves and Reeves Brothers entered into a credit
agreement with a group of banks, which was amended in 1993 (the "Credit
Agreement"), and which provides Reeves and Reeves Brothers with an aggregate
$35,000,000 revolving line of credit (the "Revolving Loan") and letter of
credit facility. Currently, the Revolving Loan bears interest at the
Alternative Base Rate (defined below) plus 1 1/4% or Eurodollar Rate plus
2 1/4%, at the election of the borrower. The Alternative Base Rate is
defined as the higher of the Prime Rate (7 3/4% at October 2, 1994), Base
CD Rate plus 1%, or the Federal Funds Effective Rate plus 1/2%. The
applicable rates above the Alternative Base Rate and Eurodollar Rate decline
based on a ratio of earnings to fixed charges, as defined. The Credit
Agreement terminates on December 31, 1995. The Credit Agreement is secured
by Reeves Brothers' accounts receivable and inventories. As of October 2,
1994, Reeves had available borrowings, net of $1,276,000 of outstanding
letters of credit, of $19,244,000. A commitment fee of 1/2% per annum is
required on the unused portion of the Revolving Loan.
<PAGE>
The 11% Senior Notes, Credit Agreement, and 13 3/4% Subordinated
Debentures contain certain restrictive covenants with respect to Reeves and
Reeves Brothers including, among other things, maintenance of working
capital, limitations on the payment of dividends, the incurrence of
additional indebtedness and certain liens, restrictions on capital
expenditures, mergers or acquisitions, investments and transactions with
affiliates, and compliance with certain financial tests and limitations.
In May 1994, Reeves received a $12.0 million commitment from an
equipment lessor for long-term operating leases of equipment. This
commitment was increased to $18.8 million in August 1994. As of
October 2, 1994, $5.8 million was utilized. Reeves believes that a
substantial portion of the balance will be utilized in 1994.
Reeves believes that its cash flow from operations, available leasing
capacity and funds available under the Credit Agreement will be sufficient
to fund working capital needs, capital expenditure requirements, and debt
service obligations in future years.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits Description Page
-------- ----------- ----
Exhibit 11 Computation of Earnings
Per Common Share 19
(b) Reports on Form 8-K
There were no reports on Form 8-K filed during the
three month period ended October 2, 1994.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
REEVES INDUSTRIES, INC.
DATE: November 15, 1994 By: \s\ Steven W. Hart
___________________
Steven W. Hart
Executive Vice President
Chief Financial Officer
<PAGE>
EXHIBIT 11.
CALCULATION OF PRIMARY AND FULLY DILUTED
EARNINGS PER COMMON SHARE
REEVES INDUSTRIES, INC. AND SUBSIDIARY
(in thousands, except per share data)
Quarter Ended Nine Months Ended
__________________ ___________________
Sept 26, Oct 2, Sept 26, Oct 2,
1993 1994 1993 1994
-------- ------- -------- -------
Net income $ 1,039 $ 1,671 $ 4,157 $ 6,717
======= ======= ======= =======
Earnings per common share
Primary and
fully diluted:
Net income $ .03 $ .05 $ .12 $ .19
======= ======= ======= =======
Weighted average number
of common shares
outstanding
Primary and
fully diluted 34,968 35,022 34,968 35,022
====== ====== ====== ======
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> OCT-02-1994
<CASH> 9,039
<SECURITIES> 0
<RECEIVABLES> 53,586
<ALLOWANCES> 1,437
<INVENTORY> 39,193
<CURRENT-ASSETS> 108,889
<PP&E> 104,310
<DEPRECIATION> 35,024
<TOTAL-ASSETS> 229,019
<CURRENT-LIABILITIES> 45,736
<BONDS> 147,233
<COMMON> 350
0
0
<OTHER-SE> 29,624
<TOTAL-LIABILITY-AND-EQUITY> 229,019
<SALES> 227,809
<TOTAL-REVENUES> 227,809
<CGS> 182,179
<TOTAL-COSTS> 182,179
<OTHER-EXPENSES> 22,148
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 12,304
<INCOME-PRETAX> 11,213
<INCOME-TAX> 4,496
<INCOME-CONTINUING> 6,717
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6,717
<EPS-PRIMARY> 0.19
<EPS-DILUTED> 0.19
</TABLE>
