Page 1 of 30 Total Pages
Index to Schedules and
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SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR
15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1995 Commission File Number 1-2451
NATIONAL PRESTO INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
Wisconsin Corporation 39-0494170
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification Number)
3925 North Hastings Way
Eau Claire, Wisconsin 54703-3703
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (715) 839-2121
Securities registered pursuant to Section 12(b) of the Act:
Name of each exchange on
Title of each class which registered
$1.00 par value common stock New York Stock Exchange
Securities registered pursuant to Section 12 (g) of the Act:
NONE
Title of Class
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 ____
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K (229.405 of this chapter) is not contained herein, and will
not be contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-K
or any amendment to the Form 10-K.
__X__
The aggregate market value of the voting stock held by non-affiliates of the
registrant computed by reference to the price at which the stock was sold, or
the average bid and asked prices of such stock, as of February 29, 1996, was
$303,219,139.
The number of shares outstanding of each of the registrant's classes of common
stock, as of February 29, 1996, was 7,350,892.
DOCUMENTS INCORPORATED BY REFERENCE
The following documents are incorporated by reference into that part of this
Form 10-K designated to the right of the document title.
TITLE PART
Proxy Statement Part III
Except as specifically incorporated herein by reference, the foregoing Proxy
Statement is not deemed filed as part of this report.
PART I
ITEM 1. BUSINESS
A. The business of National Presto Industries, Inc., and its
consolidated subsidiaries (the "Company") consists of a single business
category. Comments on individual portions of that category follow.
COMMERCIAL
The Company manufactures and distributes small electrical appliances
and housewares, including comfort appliances, pressure cookers and
canners, private label and premium sales products.
Electrical appliances and housewares sold by the Company include
pressure cookers and canners; the Presto(R) Control Master(R) single
thermostatic control line of fry pans in several sizes, griddles and
combination griddle/warmers and multi-purpose cookers; deep fryers of
various sizes; can openers, slicer/shredders, curly cutters, potato
chippers, ice cream makers and electric shoe polishers; electric
heaters; corn poppers (hot air and microwave); coffeemakers; electric
tea kettles; electric knives; bread slicing systems; electric knife
sharpeners; and timers.
Pressure cookers and canners are available in various sizes and are
fabricated of aluminum and, in the case of cookers, of stainless steel.
The Company believes it is one of the principal manufacturers of
pressure cookers in the United States.
For the year ended December 31, 1995, approximately 45% of consolidated
revenues were provided by cast products (fry pans, griddles, deep
fryers and electric cookers), approximately 22% by motorized nonthermal
appliances (can openers, slicer/shredders, curly cutters, ice cream
makers, knife sharpeners, potato chippers, electric knives, bread
slicing systems and shoe polishers), and approximately 29% by
noncast/thermal appliances (stamped cookers and canners, stainless
steel cookers, corn poppers (hot air and microwave), coffeemakers, tea
kettles, and heaters). For the year ended December 31, 1994,
approximately 43% of consolidated revenues were provided by cast
products, approximately 22% by motorized nonthermal appliances and
approximately 31% by noncast/thermal appliances. For the year ended
December 31, 1993, approximately 48% of consolidated revenues were
provided by cast products, approximately 26% by motorized nonthermal
appliances and approximately 20% by noncast/thermal appliances.
Wal-Mart Stores, Inc., accounted for 36%, 35% and 34% of consolidated
revenues for the years ended December 31, 1995, 1994 and 1993,
respectively.
Products are sold directly to retailers throughout the United States
and also through independent distributors. Although the Company has
long established relationships with many of its customers, it does not
have long-term supply contracts with them. The loss of, or material
reduction in, business from any of the Company's major customers could
adversely affect the Company's business.
The Company has a sales force of approximately nineteen employees which
sells to and services customers. In selected geographic areas sales are
handled by manufacturers' representatives who may handle other product
lines. Sales promotional activities include television and radio. The
Company's commercial business is highly competitive and seasonal, with
the normal peak sales period occurring in the fourth quarter of the
year prior to the holiday season. Many companies compete for sales of
housewares and small appliances, some of which are larger than the
Company and others which are smaller. Product competition extends to
special product features, product pricing, marketing programs, warranty
provisions, service policies and other factors. New product
introductions are an important part of the Company's sales to offset
the morbidity rate of other products and/or the effect of lowered
acceptance of seasonal products due to weather conditions. New products
entail unusual risks. Engineering and tooling costs are increasingly
expensive, as are components and finished goods that may not have a
ready market or achieve a widespread consumer acceptance. High-cost
advertising commitments accompanying such new products or to maintain
sales of existing products may not be fully absorbed by ultimate
product sale. Initial production schedules, set in advance of
introduction, carry the possibility of excess unsold inventories. New
product introductions are further subject to delivery delays from
supply sources, which can impact availability for the Company's most
active selling periods.
Research and development costs related to new product development for
the years 1995, 1994 and 1993 were absorbed in operations for these
years and were not a material element in the aggregate costs incurred
by the Company.
Presto products are generally warranted to the original owner to be
free from defects in material and workmanship for a period of two years
from date of purchase. The Company allows a sixty-day over-the-counter
initial failure return privilege through cooperating dealers. The
Company services its products through independent service stations
throughout the United States and the corporate service repair
operation. The Company's service and warranty programs are competitive
to those offered by other manufacturers in the industry.
The Company's commercial products are manufactured in plants located at
Jackson, Mississippi and Alamogordo, New Mexico. The Company also
purchases a significant portion of its products from nonaffiliated
companies located outside the United States.
DEFENSE
The Company commenced defense production in 1942. From 1966 through
1980, 105MM projectiles were produced in the Eau Claire facility
(utilizing Government owned equipment in Company owned buildings).
Production of 8" projectiles also occurred intermittently during this
period. Since completion of production in 1980, standby contracts had
been received and renewed on an annual basis through September, 1992.
For the period October, 1992 through September, 1993 a storage only
contract was received. In September, 1993, the Pentagon exercised its
option of abandoning, in place, the production equipment formerly
utilized for projectile fabrication. Most of this equipment has been
sold and work is in progress to restore the plant for manufacturing, or
other purposes.
See Section B3 for comments regarding Defense related Environmental
Protection Agency matters.
WAREHOUSING AND TRANSPORTATION SERVICES
For a number of years, the Company has warehoused and distributed its
commercial products from a centrally located distribution center.
Selective use is made of a fleet of tractors and trailers with
backhauls scheduled on return trips carrying goods consigned for
internal corporate use.
FINANCIAL MANAGEMENT
A separate subsidiary of the Company, a Delaware holding company,
carries responsibility for the maintenance and management of funds not
currently required for business activities and therefore temporarily
available for investments. (See Footnote B(3) in Notes to Consolidated
Financial Statements.) Income from Financial Management activities is
included in Other Income in the accompanying financial statements.
Earnings for this subsidiary may vary widely from year to year
depending on interest yields on instruments meeting the investment
criteria, and the extent to which funds may be needed for newly
identified business activities.
B. OTHER COMMENTS
1. Sources and Availability of Materials
Production levels at commercial plants may be affected by vendor
failure to deliver tooling, material and critical parts within
commitments. While recent years have witnessed virtual elimination of
these circumstances, there is no assurance against recurrence.
Deliveries of new products, many of which have been sourced overseas,
could be delayed by labor or supply problems at the vendors or in
transportation. As a consequence, these products may not be available
in sufficient quantities during the prime selling period. While there
has been no major incidence of such problems and the Company has made
every reasonable effort to prevent occurrence, there is no assurance
that such effort will be totally effective.
2. Trademarks, Licenses, Franchises and Concessions Held
With increased sales volume being generated by new products, patents
have become more meaningful to operating results. Trademarks and
know-how are considered material. The Company's current and future
success depends upon judicial protection of its intellectual property
rights ( patents, trademarks and trade dress). Removal of that
protection would expose the Company to competitors who seek to take
advantage of the Company's innovations and proprietary rights. To date,
the Company has vigorously protected its rights and enjoyed success in
all its intellectual property suits.
3. Effects of Compliance with Environmental and OSHA Regulations
In May 1986, the Company's Eau Claire, Wisconsin, site was placed on
the United States Environmental Protection Agency's (EPA) National
Priorities List (NPL) under the Comprehensive Environmental Reponse,
Compensation and Liability Act of 1980 (CERCLA) because of alleged
hazardous waste deposited on the property. During July 1986, the
Company entered into an agreement with the EPA and the Wisconsin
Department of Natural Resources to conduct a Remedial Investigation and
Feasibility Study at the site. The Remedial Investigation was completed
in 1992, the Feasibility Study in 1994, and the remedial action
activities initiated during 1993 and 1994 which have not been
completed, are continuing.
As a result of an April 1989 EPA Unilateral Order, an August 1990 EPA
Record of Decision, followed by a directive from the Department of the
Army, the Company implemented an alternative drinking water system for
approximately 200 homes and businesses in an area adjacent to the site.
This system has since been installed and become fully operational. In
August 1993, after extensive negotiations with the EPA, the Company
entered into a settlement agreement to reimburse remediation costs,
plus interest, for groundwater contamination affecting a municipal well
field allegedly related to the site.
In February 1988 the Company entered into an agreement with the
Department of the Army pursuant to which the Army funded $5,000,000 of
environmental restoration costs related to the site. Based on Remedial
Investigation/Feasibility Study costs, the Army's direction to
implement the alternative drinking water system and costs for remedial
action, it became apparent that additional government funding was
necessary (a factor that was identified as a possibility in the
original agreement with the government). Further legislative action in
1992 resulted in an additional $7,000,000 for funding environmental
restoration activities, which was placed under a funding agreement with
the Company in 1993. A further supplement of $15,000,000 was included
in 1995 legislation, funding for which has not yet been received and
may require additional Congressional action during 1996.
It does not presently appear that the ultimate liability associated
with the unresolved environmental contingencies will have a material
effect on the financial condition of the Company. If the Army honors
its contractual obligations there will not be any material effect on
the results of operations. There is, of course, always the possibility
that something unforeseen could occur.
4. Number of Employees of the Company
As of December 31, 1995, the Company had 614 employees.
5. Industry Practices Related to Working Capital Requirements
The major portion of the Company's commercial sales were made with
terms of 90 days or shorter. A small portion of the sales were made
with seasonal dating provisions.
Inventory levels increase in advance of the selling period for products
which are seasonal, such as pressure canners, heaters, and in
preparation for new product introductions. Inventory build-up also
occurs to create stock levels required to support the higher sales
which occur in the latter half of each year. Recent changes in the
buying practices of the Company's customers indicate a movement away
from substantial advance stocking orders and to smaller, more frequent
orders. As this trend continues and is expanded upon, the Company is
being required to carry larger finished goods inventories than those
historically maintained. The Company purchases components and raw
materials in advance of production requirements where such purchases
are required to ensure supply or provide advantageous long-term
pricing.
6. Backlog
Shipment of most of the Company's commercial products occurs within a
relatively short time after receipt of the order and, therefore, there
is usually no substantial order backlog. New product introductions do
result in order backlogs which vary from product to product and as to
timing of introduction.
C. INDUSTRY SEGMENTS
The Company operates in one Business Segment.
ITEM 2. PROPERTIES (Owned Except Where Indicated)
The Company's principal Eau Claire facilities are approximately 560,000
square feet of which 428,000 square feet were related to ordnance
activities. Leases for 31,000 square feet have been entered into with
outside tenants.
The Company's corporate office is also located in Eau Claire.
The Company manufactures consumer products in Jackson, Mississippi and
Alamogordo, New Mexico.
The Jackson plant contains 283,000 square feet, of which 119,600 square
feet is used for warehousing.
The facility at Alamogordo contains 163,200 square feet, of which
24,800 square feet is used for warehousing.
The Company has a 162,400 square foot building at Canton, Mississippi
which is used primarily for warehousing, distribution and in part for
product service functions. An additional 24,000 square feet has been
leased in adjacent buildings for storage area.
ITEM 3.LEGAL PROCEEDINGS
The Company is subject to various action incidental to its normal
business operations. In the opinion of management such actions will be
resolved for amounts which in the aggregate will not be material in
relation to the financial statements.
See Item 1.B.3. for comment regarding environmental actions.
ITEM 4.SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
EXECUTIVE OFFICERS OF THE REGISTRANT
The following information is provided with regard to the executive officers of
the registrant:
<TABLE>
<CAPTION>
FAMILY
NAME TITLE AGE RELATIONSHIP
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Melvin S. Cohen Chairman of the Board 78 Father of
Maryjo Cohen
Maryjo Cohen President, Chief Executive, 43 Daughter of
Operating and Financial Melvin S. Cohen
Officer
Richard F. Anderl Vice-President, Engineering 52 None
James F. Bartl Secretary 55 None
Randy F. Lieble Treasurer 42 None
</TABLE>
Mr. Cohen was elected Chairman of the Board in May, 1975. Prior to that
date he was President, a position which he again held from November,
1986 to May, 1989.
Ms. Cohen was elected Treasurer in September, 1983, to the additional
positions of Vice-President in May, 1986 and President in May 1989. She
has been associated with the registrant since 1976. Prior to becoming
an officer, she was Associate Resident Counsel and Assistant to the
Treasurer.
Mr. Anderl was elected Vice-President in May, 1989. He has been
associated with the registrant since 1963 and prior to becoming an
officer, he was Director of Engineering.
Mr. Bartl was elected Secretary in May, 1978. He has been associated
with the registrant since 1969. Prior to becoming an officer, he was
Resident Counsel and Director of Industrial Relations, positions he
continues to hold.
Mr. Lieble was elected Treasurer in November, 1995. He has been
associated with the registrant since 1977. Prior to becoming an
officer, he was Manager of Investments and Contracts.
PART II
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
<TABLE>
<CAPTION>
Record of Dividends Paid and Market Price of Common Stock
---------------------------------------------------------
1995 Fiscal Year 1994 Fiscal Year
-----------------------------------------------------
Applicable Market Price Applicable Market Price
Dividends Paid Dividends Paid
per Share High Low per Share High Low
--------- ---- --- --------- ---- ---
<S> <C> <C> <C> <C> <C> <C>
First Quarter $2.15 $42 1/2 $39 3/4 $1.90 $48 $43 3/4
Second Quarter -- 48 40 3/4 -- 45 1/8 39 1/2
Third Quarter -- 46 3/4 42 -- 43 7/8 39 1/8
Fourth Quarter -- 44 7/8 38 3/4 -- 43 1/8 39 1/8
------------------------------------- --------------------------------
Full Year $2.15 $48 $38 3/4 $1.90 $48 $39 1/8
</TABLE>
Common stock of National Presto Industries, Inc., is traded on the New
York Stock Exchange under the symbol NPK. As of December 31, 1995, there were
1,200 stockholders. There were 1,176 stockholders as of February 29, 1996, the
latest practicable date.
ITEM 6. SELECTED FINANCIAL DATA
(In thousands except per share data)
<TABLE>
<CAPTION>
For the Years Ended December 31, 1995 1994 1993 1992 1991
-------------------------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net sales $120,172 $128,070 $118,580 $128,263 $161,522
Net earnings $ 18,969 $ 21,455 $ 18,655 $ 25,882 $ 36,703
Net earnings per common and
common equivalent share $ 2.61 $ 2.92 $ 2.55 $ 3.53 $ 4.98
Total assets $284,927 $291,036 $283,004 $263,928 $268,591
Long-term debt -- $ 5,103 $ 5,103 $ 5,103 $ 5,103
Dividends paid per common share
applicable to current year $ 2.15 $ 1.90 $ -- $ 1.25 $ 1.00
Dividends paid per common share
applicable to subsequent year -- -- -- $ 2.55 $ 1.70
====================================================
Total dividends paid $ 2.15 $ 1.90 $ --* $ 3.80 $ 2.70
</TABLE>
* The 1993 dividend was paid on December 28, 1992.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATION
1995 Compared to 1994
Net sales decreased by $7,898,000 from $128,070,000 to $120,172,000, primarily
due to a unit volume decrease.
Gross profit for 1995 decreased by $7,885,000 from $50,681,000 to $42,796,000
due to the volume decrease and cost increases stemming from rising cumulative
1994 and 1995 vendor prices without appreciable price relief from the Company's
retail customers. The decline was offset in part by the impact of the LIFO
adjustment which was less unfavorable in 1995 than in 1994. See footnote C for
additional information on the LIFO adjustments. Gross margins as a percentage of
sales was 36% versus 40% in 1995 and 1994, respectively.
Selling and general expenses increased $1,178,000 due to increased bad debt
write-offs and higher administrative expenses. As a percentage of net sales,
selling and general expenses increased from 21% to 23%.
Other income increased from the 1994 level primarily as a result of a higher
pre-tax rate of return on the Company's portfolio of short-term marketable
securities.
The other, principally litigation settlement, was the result of a
non-operational receipt of $2.85 million in damages and interest resulting from
the Court of Appeals for the Federal Circuit decision that Black & Decker
infringed Presto's patent on its SaladShooter(R) electric slicer/shredder. It
was offset in part by the cost of retiring a convertible debenture.
Earnings before provision for income taxes decreased $5,116,000 from $30,519,000
to $25,403,000. The provision for income taxes decreased from $9,064,000 to
$6,434,000, which resulted in an effective income tax rate decrease from 30% to
25%, as a result of decreased earnings subject to tax. Net earnings decreased
$2,486,000 from $21,455,000 to $18,969,000, or 12%.
The Company maintains adequate liquidity for all its anticipated capital
requirements and dividend payments. As of year-end 1995, there were no material
capital commitments outstanding.
Forward looking statements in this Report are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. There are
certain important factors that could cause results to differ materially from
those anticipated by some of the statements made above. Investors are cautioned
that all forward looking statements involve risks and uncertainty. In addition
to the factors discussed above, among the other factors that could cause actual
results to differ materially are the following: consumer spending and debt
levels; interest rates; continuity of relationships with and purchases by major
customers; product mix; competitive pressure on sales and pricing, and increase
in material or production cost which cannot be recouped in product pricing.
1994 Compared to 1993
Net sales increased by $9,490,000 from $118,580,000 to $128,070,000, 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, and
the cessation of revenues from the storage and maintenance of government
equipment.
Gross profit for 1994 increased $2,775,000 primarily due to the increased
volume, offset in part by cost increases stemming from higher commodity prices,
costs entailed in storage and handling of carryover products, and the impact of
the LIFO adjustment which was considerably more unfavorable in 1994 than in
1993. See Footnote C for additional information on the LIFO adjustments. Gross
margins as a percentage of sales were 40% in both periods.
Selling and general expenses decreased $823,000 primarily as a result of
decreased selling and advertising expenses. As a percentage of sales, selling
and general expenses decreased from 23% to 21%.
Other income increased from the 1993 level primarily as a result of a higher
level of invested funds and a higher pretax rate of return on the Company's
portfolio of short-term marketable securities.
Earnings before provision for income taxes increased $4,357,000 from $26,162,000
to $30,519,000. The provision for income taxes increased from $7,507,000 to
$9,064,000, the effective income tax rate increased from 29% to 30%, as a result
of increased earnings subject to tax. Net earnings increased $2,800,000 from
$18,655,000 to $21,455,000, or 15%.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
A. The consolidated financial statements of National Presto
Industries, Inc. and its subsidiaries and the related Report
of Independent Certified Public Accountants are contained on
pages F-1 through F-11 of this report.
B. Quarterly financial data is contained in Note M in Notes to
Consolidated Financial Statements.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
None
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
A listing of the Executive Officers of the Registrant is included in
Part I. See Note following Item 13.
ITEM 11. EXECUTIVE COMPENSATION
See Note following Item 13.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
See Note following Item 13.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
See Note following.
NOTE: Within 120 days after the close of the registrant's fiscal year ended
December 31, 1995, the registrant will file a definitive proxy statement
pursuant to regulations 14A. Therefore, pursuant to the Rules and Regulations of
the Securities Exchange Act of 1934, the additional information required for
Items 10, 11, 12 and 13 has been omitted and is incorporated herein from the
Proxy by reference.
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
A. The following consolidated financial statements of National
Presto Industries, Inc., and its subsidiaries and the related
Report of Independent Certified Public Accountants are
included in this report:
<TABLE>
<CAPTION>
Form 10-K
Page Reference
--------------
<S> <C>
1. Consolidated Balance Sheets - December 31, 1995 and 1994 F-1 & F-2
2. Consolidated Statements of Earnings -
Years ended December 31, 1995, 1994 and 1993 F-3
3. Consolidated Statements of Cash Flows -
Years ended December 31, 1995, 1994 and 1993 F-4
4. Consolidated Statements of Stockholders' Equity -
Years ended December 31, 1995, 1994 and 1993 F-5
5. Notes to Consolidated Financial Statements F-6 thru F-10
6. Report of Independent Certified Public Accountants F-11
Statements and schedules of the registrant have been omitted as the
consolidated statements of the registrant and its subsidiaries are
included. All subsidiaries included in the consolidated financial
statements are wholly owned.
B. The following Schedules and Exhibits are included in this report:
Schedule II - Valuation and Qualifying Accounts F-12
Exhibit 11 - Statement Re Computation of Per Share Earnings F-13
Exhibit 22 - Parent and Subsidiaries F-14
Exhibit 23.1 - Auditors' Consent F-15
Exhibit 27 - Financial Data Schedule F-16
</TABLE>
All other Schedules and Exhibits for which provision is made in the
applicable accounting regulations of the Securities and Exchange
Commission are not required under the related instructions or are
inapplicable, and therefore have been omitted. Columns omitted from
schedules filed have been omitted because the information is not
applicable.
SIGNATURE
Pursuant to the Requirements of Section 13 or 14 (d) 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.
(registrant)
By: /S/ Walter G. Ryberg By: /S/ Melvin S. Cohen
Walter G. Ryberg Melvin S. Cohen
Director
By: /S/ John M. Sirianni By: /S/ James F. Bartl
John M. Sirianni James F. Bartl
Director
By: /S/ Ralph Strangis By: /S/ Maryjo Cohen
Ralph Strangis Maryjo Cohen
Director
Date: March 27, 1996
<TABLE>
<CAPTION>
NATIONAL PRESTO INDUSTRIES, INC. PAGE F-1
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
DECEMBER 31, 1995 DECEMBER 31, 1994
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 91,448 $109,444
Marketable securities 112,583 112,754
Accounts receivable $ 38,566 $ 37,385
Less allowance for doubtful accounts 450 38,116 450 36,935
------------- -------------
Inventories:
Finished goods 14,787 8,549
Work in process 2,397 1,617
Raw materials 7,359 7,416
Supplies 1,062 25,605 1,283 18,865
------------- -------------
Prepaid expenses 1,753 912
--------------- -------------
Total current assets 269,505 278,910
PROPERTY, PLANT AND EQUIPMENT:
Land and land improvements 146 140
Buildings 6,243 5,412
Machinery and equipment 10,257 8,166
------------- -------------
16,646 13,718
Less allowance for depreciation 9,337 7,309 9,380 4,338
------------- -------------
OTHER ASSETS 8,113 7,788
--------------- -------------
$ 284,927 $291,036
=============== =============
The accompanying notes are an integral part of the financial statements.
NATIONAL PRESTO INDUSTRIES, INC. PAGE F-2
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
DECEMBER 31, 1995 DECEMBER 31, 1994
- -------------------------------------------------------------------------------------------------------------------------
LIABILITIES
CURRENT LIABILITIES:
Accounts payable $ 13,717 $ 16,769
Federal and state income taxes 5,224 7,867
Accrued liabilities 19,245 18,358
--------------- -------------
Total current liabilities 38,186 42,994
LONG-TERM DEBT, to a related party - 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 848 590
Retained earnings 240,797 237,604
------------- -------------
249,086 245,635
Treasury stock, at cost, 89,751 shares
in 1995 and 102,720 shares in 1994 2,345 2,696
------------- -------------
Total stockholders' equity 246,741 242,939
--------------- -------------
$ 284,927 $291,036
=============== =============
</TABLE>
The accompanying notes are an integral part of the financial statements.
<TABLE>
<CAPTION>
NATIONAL PRESTO INDUSTRIES, INC. PAGE F-3
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands except per share data)
For the years ended December 31, 1995 1994 1993
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Gross sales $122,378 $130,364 $120,534
Less freight, discounts, etc. 2,206 2,294 1,954
---------------------------------------
Net sales 120,172 128,070 118,580
Cost of sales 77,376 77,389 70,674
---------------------------------------
Gross profit 42,796 50,681 47,906
Selling and general expenses 27,647 26,469 27,292
---------------------------------------
Operating profit 15,149 24,212 20,614
Other income, principally interest 8,625 6,851 6,302
Other, principally litigation settlement 2,316 - -
Interest expense (687) (544) (754)
---------------------------------------
Earnings before provision for income taxes 25,403 30,519 26,162
Provision for income taxes:
Current:
Federal 5,884 9,013 6,527
State 1,055 1,415 1,296
Deferred (505) (1,364) (316)
---------------------------------------
6,434 9,064 7,507
---------------------------------------
Net earnings $ 18,969 $ 21,455 $ 18,655
=======================================
Weighted average common and common
equivalent shares outstanding 7,344 7,458 7,430
=======================================
Net earnings per common share $ 2.61 $ 2.92 $ 2.55
=======================================
</TABLE>
The accompanying notes are an integral part of the financial statements.
<TABLE>
<CAPTION>
NATIONAL PRESTO INDUSTRIES, INC. PAGE F-4
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
For the years ended December 31, 1995 1994 1993
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net earnings $18,969 $ 21,455 $ 18,655
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Provision for depreciation 1,485 1,173 1,150
Deferred income taxes (505) (1,364) (316)
Stock compensation expense 401 (k) 81 91 91
Call option on early retirement of debt 534 - -
Changes in:
Accounts receivable (1,181) (9,371) 150
Inventories (6,740) 4,677 (4,266)
Prepaid expenses (841) (112) (703)
Accounts payable and accrued liabilities (2,165) (2,031) 1,717
Federal and state income taxes (2,643) 2,436 (1,387)
--------------------------------------
Net cash provided by operating activities 6,994 16,954 15,091
--------------------------------------
Cash flows from investing activities:
Marketable securities purchased (98,921) (98,673) (91,738)
Marketable securities - maturities and sales 99,092 91,105 66,003
Acquisition of property, plant and equipment (4,456) (1,661) (1,038)
Changes in other assets 180 142 377
--------------------------------------
Net cash used in investing activities (4,105) (9,087) (26,396)
--------------------------------------
Cash flows from financing activities:
Payment of long-term debt (5,103) - -
Treasury stock transactions (6) 19 -
Dividends paid (15,776) (13,938) -
--------------------------------------
Net cash used in financing activities (20,885) (13,919) -
--------------------------------------
Net decrease in cash and cash equivalents (17,996) (6,052) (11,305)
Cash and cash equivalents at beginning of year 109,444 115,496 126,801
--------------------------------------
Cash and cash equivalents at end of year $91,448 $109,444 $115,496
======================================
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest $ 727 $ 544 $ 754
Income taxes $ 9,526 $ 7,991 $ 9,262
</TABLE>
The accompanying notes are an integral part of the financial statements.
<TABLE>
<CAPTION>
NATIONAL PRESTO INDUSTRIES, INC. PAGE F-5
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(In thousands except per share data)
For the years ended December 31, 1995, 1994, 1993
- -------------------------------------------------------------------------------------------------------------
Common Paid-in Retained Treasury
Stock Capital Earnings Stock Total
----- ------- -------- ----- -----
<S> <C> <C> <C> <C> <C>
Balance January 1, 1993 $ 7,441 $ 503 $211,432 $ (2,810) $216,566
Net earnings 18,655 18,655
Treasury stock transactions 45 46 91
---------------------------------------------------------------
Balance December 31, 1993 7,441 548 230,087 (2,764) 235,312
Net earnings 21,455 21,455
Treasury stock transactions 42 68 110
Dividends paid, $1.90 per share (13,938) (13,938)
---------------------------------------------------------------
Balance December 31, 1994 7,441 590 237,604 (2,696) 242,939
Net earnings 18,969 18,969
Treasury stock transactions 33 42 75
Stock issued for call premium on early
retirement of debt 225 309 534
Dividends paid, $2.15 per share (15,776) (15,776)
---------------------------------------------------------------
Balance December 31, 1995 $ 7,441 $ 848 $240,797 $ (2,345) $246,741
===============================================================
</TABLE>
The accompanying notes are an integral part of the financial statements.
NATIONAL PRESTO INDUSTRIES, INC. PAGE F-6
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
A. NATURE OF OPERATIONS:
The Company manufactures and distributes small electrical appliances and
housewares. Products are sold directly to retail outlets throughout the
United States and also through independent distributors. The manufacturing
of these products is done in plants located at Jackson, Mississippi;
Alamogordo, New Mexico; and a significant portion of its products are
imported from nonaffiliated companies in the Pacific Rim countries. A
separate subsidiary of the Company, a Delaware holding company, carries
responsibility for the maintenance and management of funds not currently
required for business activities and therefore temporarily available for
investments.
B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
(1) USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS: In
preparation of the Company's consolidated financial statements,
management is required to make estimates and assumptions that affect
the reported amounts of assets and liabilities and related revenues
and expenses. Actual results could differ from the estimates used by
management.
(2) PRINCIPLES OF CONSOLIDATION: The consolidated financial statements
include the accounts of National Presto Industries, Inc. and its
subsidiaries all of which are wholly-owned. All material
intercompany accounts and transactions are eliminated.
(3) CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES: The Company
considers all highly liquid marketable securities with a maturity of
one week or less to be cash equivalents. Cash equivalent securities
totaled $92,851,000 and $109,733,000 at December 31, 1995 and 1994.
The Company's cash equivalents and marketable securities are
diversely invested, principally in A-rated or higher tax exempt
bonds issued by entities throughout the United States.
The Company has classified all cash equivalents and marketable
securities as available for sale which requires the securities to be
reported at fair value, with unrealized gains and losses reported as
a separate component of stockholders' equity. At December 31, 1995
and 1994, cost approximated market value for all securities using
the specific identification method.
The contractual maturities of the marketable securities held at
December 31, 1995 were $79,525,000 in 1996, $23,364,000 in 1997,
$8,253,000 in 1998, and $1,441,000 with indeterminate maturities.
(4) INVENTORIES: Inventories are stated at the lower of cost or market
with cost being determined principally on the last-in, first-out
(LIFO) method.
(5) PROPERTY, PLANT AND EQUIPMENT: Property, plant and equipment are
stated at cost. For machinery and equipment, all amounts which are
fully depreciated have been eliminated from both the asset and
allowance accounts. Depreciation is provided in amounts sufficient
to relate the costs of depreciable assets to operations over their
service lives which are estimated at 15 to 40 years for buildings
and 3 to 7 years for machinery and equipment.
(6) REVENUE RECOGNITION: The Company recognizes revenues when product is
shipped.
PAGE F-7
(7) ADVERTISING: Advertising expense was $16,479,000, $17,338,000 and
$17,652,000 in 1995, 1994 and 1993.
(8) NEW ACCOUNTING STANDARDS: The Financial Accounting Standards Board
has issued two accounting standards which the Company is required to
adopt January 1, 1996. The first standard establishes guidance on
when and how to measure impairment of long-lived assets, certain
identifiable intangibles, and how to value long-lived assets to be
disposed of. The second standard establishes accounting and
reporting for stock-based compensation plans. This standard permits
the Company to select the new fair value based method of accounting
for employee stock options or the existing intrinsic value method
which the Company currently follows. The Company intends to continue
to use the intrinsic value method which will require additional
footnote disclosures concerning its stock-based compensation plans.
Management believes the adoption of these new accounting standards
will not have a material effect on the Company's consolidated
financial statements.
C. INVENTORIES:
The aggregate amount of inventories valued on the LIFO basis is
$24,543,000 and $17,886,000 as of December 31, 1995 and 1994,
respectively. Under LIFO, inventories are valued at approximately
$11,524,000 and $10,550,000 below current cost determined on a first-in,
first-out (FIFO) basis at December 31, 1995 and 1994. The Company uses the
LIFO method of inventory accounting to improve matching of costs and
revenues.
The following table describes that which would have occurred if LIFO
inventories had been valued at current cost determined on a FIFO basis:
Increase (Decrease)
-------------------
Cost of Net Earnings
Year Sales Earnings Per Share
---- ----- -------- ---------
1995 $ (974,000) $ 604,000 $ 0.08
1994 (1,682,000) 1,043,000 0.14
1993 (674,000) 418,000 0.06
This information is provided for comparison with companies using the FIFO
basis.
D. ACCRUED LIABILITIES:
At December 31, 1995 accrued liabilities consisted of payroll $2,482,000,
insurance $9,928,000, environmental $3,612,000 and other $3,223,000. At
December 31, 1994 accrued liabilities consisted of payroll $2,466,000,
insurance $9,051,000, environmental $3,612,000 and other $3,229,000.
E. LONG-TERM DEBT:
Long-term debt at December 31, 1994 consisted of a Convertible Senior
Debenture, with interest at 10%. The Company retired the Debenture during
1995 and issued common stock for the call premium.
F. TREASURY STOCK:
The Board of Directors has authorized corporate reacquisition of up to
750,000 common shares of the Company stock. During 1995, 1,000 shares were
reacquired. No shares were reacquired in 1994 and 1993.
PAGE F-8
G. NET EARNINGS PER COMMON SHARE:
Net earnings per common share are computed using the weighted average
common shares outstanding during each year and the common equivalent
shares assuming conversion of the Convertible Debenture. Earnings for
calculation of the per share data are adjusted to reflect add-back of
interest expense on the Convertible Debenture.
H. STOCK OPTION PLAN:
The National Presto Industries, Inc. Stock Option Plan reserves 100,000
shares of the Company's common stock for key employees of the Company.
Stock options for 1,000 shares at $39.88 per share and 2,500 shares at
$41.75 per share were outstanding at December 31, 1995. Stock options for
1250 shares at $39.88 per share were outstanding at December 31, 1994.
I. RETIREMENT PLANS:
Pension Plans:
The Company has pension plans which cover the majority of employees.
Pension benefits are based on an employee's years of service and
compensation near the end of those years of service. The Company's funding
policy has been to contribute such amounts as necessary, computed on an
actuarial basis, to provide the plans with assets sufficient to meet the
benefits to be paid to plan members. Plan assets consist primarily (82%)
of interest bearing securities with the balance in corporate stocks,
principally National Presto Industries, Inc. common stock.
Assumptions used to calculate costs and actuarial present values are
reviewed regularly by the Company and its independent actuaries. The
assumptions used are as follows: 7% and 8% discount rate in 1995 and 1994,
4.5% and 5.0% increase in compensation levels in 1995 and 1994, and 7.5%
long term rate of return on investments. The funded status of the plans is
summarized below:
(In thousands)
--------------
As of December 31 1995 1994 1993
----------------- ---- ---- ----
Fair value of plan assets $ 9,137 $ 9,330 $ 9,889
Projected benefit obligation 8,957 8,003 8,008
-------------------------------------
Excess plan assets $ 180 $ 1,327 $ 1,881
=====================================
Prepaid pension expense $ 3,012 $ 3,190 $ 3,333
=====================================
401(k) Plan:
The Company has a 401(k) retirement plan which covers substantially all
employees. At its discretion, the Company will match up to 25% of the
first 4% contributed by employees to the plan. The Company's matching
contribution can be made with either cash or common stock. Company
contributions made from the Company's treasury stock, including the
Company's cash dividends, totaled $81,000 in 1995, $99,000 in 1994, and
$91,000 in 1993.
PAGE F-9
J. INCOME TAXES:
The effective rate of the provision for income taxes as shown in the
consolidated statements of earnings differs from the applicable statutory
federal income tax rate for the following reasons:
Percent of Pre-tax Income
-------------------------
1995 1994 1993
---- ---- ----
Statutory rate 35.0% 35.0% 35.0%
State tax 2.4% 2.6% 2.5%
Tax exempt interest
and dividends -12.0% -7.8% -8.5%
Other -0.1% -0.1% -0.3%
-------------------------------------
Effective rate 25.3% 29.7% 28.7%
=====================================
The Company follows the liability method of computing deferred income
taxes. The liability method provides that deferred tax assets and
liabilities are recorded based on the differences between the tax basis of
assets and liabilities and their carrying amounts for financial reporting
purposes. The tax effects of the cumulative temporary differences
resulting in a deferred tax asset are as follows at December 31:
(In thousands)
--------------
1995 1994
---- ----
Insurance $ 3,810 $ 3,467
Environmental 1,376 1,377
Pension (1,160) (1,234)
Other 912 823
-------------------------
$ 4,938 $ 4,433
=========================
K. CONCENTRATIONS:
One customer accounts for 36%, 35% and 34% of net sales for the years
ended December 31, 1995, 1994 and 1993.
Production levels at commercial plants may be affected by vendor failure
to deliver tooling, material and critical parts within commitments. While
recent years have witnessed virtual elimination of these circumstances,
there is no assurance against recurrence. Deliveries of new products, some
of which have been sourced overseas, could be delayed by labor or supply
problems at the vendors or in transportation. As a consequence, these
products may not be available in sufficient quantities during the prime
selling period. While there has been no major incidence of such problems
and the Company has made every reasonable effort to prevent occurrence,
there is no assurance that such effort will be totally effective.
L. ENVIRONMENTAL:
The Company is involved in certain environmental investigation matters and
restoration activities with governmental agencies. The Company has entered
into an agreement with the Department of Army that provides a vehicle for
funding costs related to environmental restoration. A total of $12,000,000
has been appropriated in connection with that agreement to date. Based on
costs incurred as of December 31, 1995 of $10,300,000 and anticipated
future remediation activities, additional funds beyond the $12,000,000 are
required. A further supplement of $15,000,000 was included in 1995
legislation for fiscal 1996. However, those funds have not yet been
obligated by the Army. To the extent the Army honors its contractual
obligations, there will be no material effect on the results of
operations. Management believes that the impact of these environmental
matters, if any, on the Company's financial condition will not be
material.
PAGE F-10
M. INTERIM FINANCIAL INFORMATION (UNAUDITED):
The following represents unaudited financial information for 1995, 1994,
and 1993:
(In thousands)
--------------
Net Gross Net Earnings
Quarter Sales Profit Earnings Per Share
------- ----- ------ -------- ---------
1995
First $ 17,962 $ 5,207 $ 2,547 $ 0.35
Second 15,882 4,482 2,497 0.35
Third 29,039 9,691 4,797 0.65
Fourth 57,289 23,416 9,128 1.26
------------------------------------------------------
Total $ 120,172 $ 42,796 $ 18,969 $ 2.61
======================================================
1994
First $ 16,202 $ 5,207 $ 2,192 $ 0.31
Second 16,487 5,200 2,220 0.30
Third 35,488 14,202 4,799 0.66
Fourth 59,893 26,072 12,244 1.65
------------------------------------------------------
Total $ 128,070 $ 50,681 $ 21,455 $ 2.92
======================================================
1993
First $ 22,370 $ 7,612 $ 3,096 $ 0.43
Second 14,275 5,344 2,628 0.36
Third 24,663 10,364 4,335 0.60
Fourth 57,272 24,586 8,596 1.16
------------------------------------------------------
Total $ 118,580 $ 47,906 $ 18,655 $ 2.55
======================================================
The Company's operations are in one industry segment.
PAGE F-11
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Stockholders and Board of Directors
National Presto Industries, Inc.
We have audited the accompanying consolidated balance sheets of National
Presto Industries, Inc. (a Wisconsin corporation) and subsidiaries as of
December 31, 1995 and 1994, and the related consolidated statements of earnings,
stockholders' equity, and cash flows for each of the three years in the period
ended December 31, 1995. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the consolidated financial position of National Presto
Industries, Inc. and subsidiaries as of December 31, 1995 and 1994, and the
consolidated results of their operations and their cash flows for each of the
three years in the period ended December 31, 1995 in conformity with generally
accepted accounting principles.
We have also audited Schedule II of National Presto Industries, Inc. and
subsidiaries for each of the three years in the period ended December 31, 1995.
In our opinion, this schedule presents fairly, in all material respects, the
information required to be set forth therein.
/S/ Grant Thornton LLP
Minneapolis, Minnesota
February 15, 1996
PAGE F-12
NATIONAL PRESTO INDUSTRIES, INC. AND SUBSIDIARIES
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
For the Years Ended December 31, 1995, 1994 and 1993
<TABLE>
<CAPTION>
(In thousands)
--------------
Column A Column B Column C Column D Column E
-------- -------- -------- -------- --------
Balance at Balance at
Beginning End
Description of Period Additions (A) Deductions (B) of Period
----------- --------- ------------- -------------- ---------
Deducted from assets:
Allowance for doubtful accounts:
<S> <C> <C> <C> <C>
Year ended December 31, 1995 $ 450 $ 572 $ 572 $ 450
===================================================================
Year ended December 31, 1994 $ 450 $ 122 $ 122 $ 450
===================================================================
Year ended December 31, 1993 $ 450 $ (374) $ (374) $ 450
===================================================================
</TABLE>
Notes:
(A) Amounts charged to selling and general expenses
(B) Principally bad debts written off, net of recoveries
PAGE F-13
EXHIBIT 11
STATEMENT RE COMPUTATION OF PER SHARE EARNINGS
The following presents the computation of per share earnings reflecting the
assumption that convertible debentures are converted.
<TABLE>
<CAPTION>
(IN THOUSANDS
EXCEPT PER SHARE DATA)
----------------------
1995 1994 1993
---- ---- ----
<S> <C> <C> <C>
Net earnings $ 18,969 $ 21,455 $ 18,655
Add interest expense related to convertible
debenture, net of income taxes 193 312 312
--------------------------------------
Adjusted net earnings for computation (1) $ 19,162 $ 21,767 $ 18,967
======================================
Weighted average common shares outstanding 7,344 7,337 7,334
Common equivalent shares from the assumed
debenture conversion - 121 96
Adjusted common and common equivalent
--------------------------------------
shares for computation (2) 7,344 7,458 7,430
======================================
Net earnings per common and common equivalent
shares outstanding (1 / 2) $ 2.61 $ 2.92 $ 2.55
======================================
</TABLE>
PAGE F-14
EXHIBIT 22
PARENT AND SUBSIDIARIES
(Included in the Consolidated Financial Statements and Wholly-owned)
National Presto Industries, Inc.
Eau Claire, Wisconsin (A Wisconsin Corporation)
Its Subsidiaries:
National Holding Investment Company
Wilmington, Delaware (A Delaware Corporation)
Its Subsidiaries:
Presto Manufacturing Company
Jackson, Mississippi (A Mississippi Corporation)
Its Division:
Presto Products Manufacturing Company
Alamogordo, New Mexico
Century Leasing and Liquidating, Inc.
Minneapolis, Minnesota (A Minnesota Corporation)
Its Subsidiary:
Presto Export, Inc. (Inactive)
Minneapolis, Minnesota (A Minnesota Corporation)
Jackson Sales and Storage Company
Jackson, Mississippi (A Mississippi Corporation)
Canton Sales & Storage Company
Canton, Mississippi (A Mississippi Corporation)
Presto Parts & Service, Inc. (Inactive)
Los Angeles, California (A California Corporation)
Presto Export, Ltd.
Christiansted, St. Croix, U.S. Virgin Islands
(A Virgin Islands Corporation)
National Defense Corporation
Eau Claire, Wisconsin (A Wisconsin Corporation)
NPI Export Corporation (Inactive)
Minneapolis, Minnesota (A Minnesota Corporation)
National Presto Industries Export Corporation (Inactive)
Wilmington, Delaware (A Delaware Corporation)
Operating results of all subsidiaries are included in the 1995 Annual Report to
Stockholders.
PAGE F-15
EXHIBIT 23.1
AUDITORS' CONSENT
We have issued our report dated February 15, 1996, accompanying
the consolidated financial statements and schedule included in the Annual Report
of National Presto Industries, Inc. and subsidiaries on Form 10-K for the year
ended December 31, 1995. We hereby consent to the incorporation by reference of
said report in the Registration Statement of National Presto Industries, Inc.
and subsidiaries on Form S-8 (File No. 33-46711, effective March 27, 1992).
/S/ Grant Thornton LLP
Minneapolis, Minnesota
February 15, 1996
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM NATIONAL
PRESTO INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
PAGE F-16
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<CASH> 91,448
<SECURITIES> 112,583
<RECEIVABLES> 38,566
<ALLOWANCES> (450)
<INVENTORY> 25,605
<CURRENT-ASSETS> 269,505
<PP&E> 16,646
<DEPRECIATION> (9,337)
<TOTAL-ASSETS> 284,927
<CURRENT-LIABILITIES> 38,186
<BONDS> 0
0
0
<COMMON> 7,441
<OTHER-SE> 239,300
<TOTAL-LIABILITY-AND-EQUITY> 284,927
<SALES> 120,172
<TOTAL-REVENUES> 120,172
<CGS> 77,376
<TOTAL-COSTS> 77,376
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 572
<INTEREST-EXPENSE> 687
<INCOME-PRETAX> 25,403
<INCOME-TAX> 6,434
<INCOME-CONTINUING> 18,969
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 18,969
<EPS-PRIMARY> 2.61
<EPS-DILUTED> 0
</TABLE>