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 . . . April 2, 1995 Commission file number . . . .1-.2451
. . . . . . . . . . . . .NATIONAL PRESTO INDUSTRIES, INC. . . . . . . . . .
(Exact name of registrant as specified in its charter)
WISCONSIN . . . . . . . . . . . . . . . . . . 39-0494170
(State or other jurisdiction of (I.R.S.Employer
incorporation or organization) Identification No.)
3925 NORTH HASTINGS WAY
. . . . EAU CLAIRE, WISCONSIN . . . . . . . . . . . . . . .54703-3703
(Address of principal executive offices) (ZipCode)
Registrant's telephone number, including area code . . . . . . 715-839-2121
There were 7,339,066 shares of the Issuer's Common Stock outstanding as
the close of the period covered by this report.
* 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 . . .
NATIONAL PRESTO INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
April 2, 1995 and December 31, 1994
(Unaudited)
(Dollars in thousands)
1995 1994
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 99,301 $109,444
Marketable securities 114,719 112,754
Accounts receivable, net 16,856 36,935
Inventories:
Finished goods $ 11,732 $ 8,549
Work in process 2,303 1,617
Raw materials 5,306 7,416
Supplies 1,591 20,932 1,283 18,865
Prepaid expenses 584 912
Total current assets 252,392 278,910
PROPERTY, PLANT AND EQUIPMENT: 14,610 13,718
Less allowance for depreciation 9,700 4,910 9,380 4,338
OTHER ASSETS 7,788 7,788
$265,090 $291,036
The accompanying notes are an integral part of the financial statements.
NATIONAL PRESTO INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
April 2, 1995 and December 31, 1994
(Unaudited)
(Dollars in thousands)
1995 1994
LIABILITIES
CURRENT LIABILITIES:
Accounts payable $ 9,849 $ 16,769
Federal and state income taxes 2,361 7,867
Accrued liabilities 18,016 18,358
Total current liabilities 30,226 42,994
LONG-TERM DEBT, to a related party 5,103 5,103
COMMITMENTS AND CONTINGENCIES -- --
STOCKHOLDERS' EQUITY
Common stock, $1 par value:
Authorized: 12,000,000 shares
Issued: 7,440,518 shares $ 7,441 $ 7,441
Paid-in capital 608 590
Retained earnings 224,375 237,604
232,424 245,635
Treasury Stock, at cost 2,663 2,696
Total stockholders' equity 229,761 242,939
$265,090 $291,036
The accompanying notes are an integral part of the financial statements.
NATIONAL PRESTO INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
Quarter Ended April 2, 1995 and April 3, 1994
(Unaudited)
(In thousands except per share data)
1995 1994
Net sales $ 17,962 $ 16,202
Cost of sales 12,755 10,995
Gross profit 5,207 5,207
Selling and general expenses 4,778 4,154
Operating profit 429 1,053
Other income, principally interest 2,382 1,653
Interest expense (137) (128)
Earnings before provision for income taxes 2,674 2,578
Provision for income taxes:
Federal 111 322
State 16 64
Net Earnings $ 2,547 $ 2,192
Weighted average common and common
equivalent shares outstanding 7,462 7,438
Net earnings per common and common
equivalent shares outstanding $ .35 $ .31
Cash dividends declared per common share:
Regular $ 1.95 $ 1.90
Extra 0.20 --
$ 2.15 $ 1.90
The accompanying notes are an integral part of the financial statements.
NATIONAL PRESTO INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
April 2, 1995 and April 3, 1994
(Unaudited)
(In thousands)
<TABLE>
<CAPTION>
1995 1994
Cash flows from operating activities:
<S> <C> <C>
Net earnings $ 2,547 $ 2,192
Adjustments to reconcile net earnings to cash flows from operating
activities:
Provision for depreciation 332 258
Stock compensation expense 401(k) 28 30
Changes in:
Accounts receivable 20,079 11,029
Inventories (2,067) 517
Accounts payable and accrued expenses (7,262) (13,740)
Federal and state income taxes (5,506) (2,977)
Other 330 324
Total 8,481 (2,367)
Cash flows from investing activities:
Marketable securities purchased (10,764) (22,971)
Marketable securities - maturities and sales 8,799 30,321
Acquisition of property, plant and equipment (906) (389)
Total (2,871) 6,961
Cash flows from financing activities:
Treasury stock transactions 24 19
Dividends paid (15,777) (13,938)
Total (15,753) (13,919)
Change in cash and cash equivalents (10,143) (9,325)
Cash and cash equivalents at beginning of period 109,444 115,496
Cash and cash equivalents at end of period $ 99,301 $ 106,171
</TABLE>
The accompanying notes are an integral part of the financial statements.
NOTES TO FINANCIAL STATEMENTS
NOTE A
Earnings per share are computed using the weighted average common shares
outstanding during each period, including common equivalent shares assuming
conversion of the convertible debenture. Earnings for calculation of the per
share data are adjusted to reflect addback of interest expense on the
convertible debenture.
__________________________________________________________________
The foregoing information for the periods ended April 2, 1995, and April 3,
1994, is unaudited; however, in the opinion of management of the Registrant, it
reflects all the adjustments, which were of a normal recurring nature, necessary
for a fair statement of the results for the interim periods. The condensed
consolidated balance sheet as of December 31, 1994, is summarized from audited
consolidated financial statements, but does not include all the disclosures
contained therein and should be read in conjunction with the 1994 Annual Report.
Interim results for the period are not indicative of those for the year.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
Comparison First Quarter 1995 and 1994
Net sales increased by $1,760,000 from $16,202,000 to $17,962,000,
primarily due to new product introductions, offset in part by a decrease in
sales from products that were either no longer part of the line or that had
matured.
Gross profit dollars were the same in both periods. Gross margins as a
percentage of sales decreased from 32% to 29%, primarily due to cost increases
stemming from higher material prices.
The Company accrues unexpended advertising costs budgeted for the year
against each quarter's sales. Major advertising commitments are incurred in
advance of the expenditures and the timing of sales through dealers and
distributors to the ultimate customer does not permit specific identification of
the customers' purchase to the actual time an advertisement appears. Advertising
charges included in selling expense in each quarter represent that percentage of
the annual advertising budget associated with that quarter's shipments.
Revisions to this budget result in periodic changes to the accrued liability for
committed advertising expenditures.
Earnings before provision for income taxes increased $96,000 from
$2,578,000 to $2,674,000, or 4%. The provision for income taxes decreased from
$386,000 to $127,000, and the effective income tax rate decreased from 15% to
5%, as a result of decreased earnings subject to tax. Net earnings increased
$355,000 from $2,192,000 to $2,547,000, or 16%.
The Company maintains adequate liquidity for all of its anticipated
capital requirements. As of quarter-end, there were no material capital
commitments outstanding.
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit 11 - Statement Regarding Computation of Per
Share Earnings
Exhibit 27 - Financial Data Schedule for SEC use
(b) There were no reports on Form 8-K filed during the quarter
for which this report is filed.
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.
____NATIONAL PRESTO INDUSTRIES, INC.___
Date: May 1, 1995 ____________________________/S/ M. S. COHEN
M. S. Cohen, Chairman of the Board
Date: May 1, 1995 ____________________________/S/ M. J. COHEN
M J. Cohen, President
(Chief Executive, Operating and Financial
Officer)
NATIONAL PRESTO INDUSTRIES, INC. AND SUBSIDIARIES
STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS
Quarter Ended April 2, 1995 and April 3, 1994
(Unaudited)
(In thousands except per share data)
1995 1994
Net Earnings $ 2,547 $ 2,192
Add interest expense related to convertible
debenture, net of income taxes 80 80
Adjusted net earnings(1) $2,627 $2,272
Weighted average common shares outstanding 7,338 7,335
Common equivalent shares from the assumed
debenture conversion 124 103
Adjusted common and common equivalent shares(2) 7,462 7,438
Net earnings per common and common equivalent
shares outstanding(1/2) $ .35 $ .31
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> APR-2-1995
<CASH> 99,301
<SECURITIES> 114,719
<RECEIVABLES> 16,856
<ALLOWANCES> 0
<INVENTORY> 20,932
<CURRENT-ASSETS> 252,392
<PP&E> 14,610
<DEPRECIATION> 9,700
<TOTAL-ASSETS> 265,090
<CURRENT-LIABILITIES> 30,226
<BONDS> 5,103
<COMMON> 7,441
0
0
<OTHER-SE> 222,320
<TOTAL-LIABILITY-AND-EQUITY> 265,090
<SALES> 17,962
<TOTAL-REVENUES> 17,962
<CGS> 12,755
<TOTAL-COSTS> 12,755
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 137
<INCOME-PRETAX> 2,674
<INCOME-TAX> 127
<INCOME-CONTINUING> 2,547
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,547
<EPS-PRIMARY> .35
<EPS-DILUTED> 0
</TABLE>
