NICHOLAS LIMITED EDITION, INC.
February 28, 1996
Dear Fellow Shareholders:
Nicholas Limited Edition recorded its second best year in the
Fund's history with a total return of 30.18% for the fiscal year
ended December 31, 1995. The Fund closed the year with a net asset
value per share of $19.22 and $169.6 million in total net assets.
The table below shows results for the time periods ended
December 31, 1995:
AVERAGE ANNUAL
TOTAL RETURN*
_________________
3 MONTHS 1 YEAR 5 YEARS
________ ______ _______
Nicholas Limited Edition
(Distributions Reinvested) +3.86% +30.18% +18.14%
NASDAQ OTC Composite (Excludes Income) +0.82% +39.91% +22.99%
Russell 2000 (Includes Income) +2.17% +28.44% +20.99%
Standard & Poor's 500
(Income Reinvested) +5.94% +37.50% +16.59%
Ending Value of $10,000 invested in
Nicholas Limited Edition
(Distributions Reinvested) $10,386 $13,018 $23,016
* Total returns are historical and include change in share
price and reinvestment of dividend and capital gain distributions.
Past performance is no guarantee of future results. Principal
value and return will fluctuate so an investment, when redeemed,
may be worth more or less than original cost. Since inception on
May 18, 1987, the average annual total return of the Fund is 14.12%
The Fund's performance for the year was driven by the
financial and health care sectors along with other individual
stock selections. During 1995 technology stocks performed well,
but came to a crashing halt during the fourth quarter. Since
Nicholas Limited Edition has always maintained a limited exposure
to the technology sector, the Fund performed well during the
quarter while avoiding the volatility produced by the technology
stocks. The year was also characterized by the larger
capitalization companies outperforming the small capitalization
sector which is evidenced by the divergence of performance in
the NASDAQ or S&P 500 vs. the Russell 2000 small company index.
The longer term record of Nicholas Limited Edition is very
satisfying, however, this level of return is quite high by normal
historical standards. The reason for the above normal returns
is the lack of a correction or bear market over the last five
years. This is unprecedented in recent stock market history. We
believe that money managers should be judged over a full market
cycle. A full market cycle would typically include a 10-20%
decline or "bear market", which usually lasts between three to
eighteen months. The current five year bull market has pushed
valuation measures such as dividend yields and price/earning
ratios to near record highs. Given the current market environment,
investors should be realistic in their expectations of future
returns.
No matter what the market conditions, we continue to practice
our investment philosophy developed over many years of good and
bad markets. This philosophy focuses us on high quality growth
companies that can produce high returns on capital and strong free
cash flow selling at reasonable valuation levels. If we do our job
assiduously, these one decision (buy only) stocks can and will be
held for the long-term, through good markets and bad. This low
turnover approach results in the shareholders paying less in
taxes, allowing a larger pool of money to compound over time.
The investment staff and all Nicholas Company employees are
proud to serve our shareholders. We appreciate your long-term
support.
Sincerely,
/s/ David O. Nicholas
-------------------------
David O. Nicholas
Portfolio Manager
<PAGE>
Schedule of Investments
December 31, 1995
SHARES OR QUOTED
PRINCIPAL MARKET
AMOUNT VALUE
_________ ___________
(Note 1 (a))
COMMON STOCKS - 95.4%
AIRLINES - 0.7%
42,000 Midwest Express Holdings, Inc. * $ 1,165,500
__________
BANKS AND FINANCE - 13.9%
75,800 Firstar Corporation 3,003,575
168,700 First Financial Corporation 3,880,100
170,000 First Merchants Acceptance Corporation * 3,145,000
10,000 Investors Financial Services Corp. * 207,500
67,500 KeyCorp Finance Inc. 2,446,875
147,525 Litchfield Financial Corporation 1,917,825
102,500 Marshall & Ilsley Corporation 2,665,000
210,265 Mercury Finance Company 2,786,011
18,125 Patlex Corporation * 267,344
40,000 Security Capital Corporation 2,410,000
46,700 State Financial Services
Corporation - Class A 805,575
__________
23,534,805
__________
BUSINESS SERVICES - 15.3%
81,250 Analysts International Corporation 2,437,500
109,218 Brandon Systems Corporation 2,798,711
45,000 Checkfree Corporation * 967,500
42,000 Danka Business Systems PLC 1,554,000
50,000 Envoy Corporation * 865,650
300,125 Keane, Inc. * 6,640,266
70,000 Medaphis Corporation * 2,590,000
50,000 MedPartners/Mullikin, Inc. * 1,650,000
50,000 SITEL Corporation * 1,531,250
103,700 TESSCO Technologies Incorporated * 2,955,450
40,000 Viking Office Products, Inc. * 1,860,000
__________
25,850,327
__________
CONSUMER PRODUCTS AND SERVICES - 7.7%
65,500 Central Parking Corporation 1,883,125
20,000 Extended Stay America, Inc. * 550,000
120,000 Marcus Corporation (The) 3,285,000
165,032 Monro Muffler Brake, Inc. * 2,289,819
105,000 O'Reilly Automotive, Inc. * 3,045,000
155,500 Republic Automotive Parts, Inc. * 2,002,062
__________
13,055,006
__________
HEALTH CARE - 24.6%
105,500 American HomePatient, Inc. * 3,112,250
30,000 American Oncology Resources, Inc. * 1,458,750
158,400 Ballard Medical Products 2,831,400
57,500 Cardinal Health, Inc. 3,148,125
60,000 DENTSPLY International Inc. 2,400,000
48,000 Elan Corporation, plc * 2,334,000
94,000 Emeritus Corporation * 1,092,750
65,000 Forest Laboratories, Inc. * 2,941,250
155,000 Haemonetics Corporation * 2,751,250
30,750 Lunar Corporation * 845,625
95,000 National Surgery Centers, Inc. * 2,185,000
65,000 OccuSystems, Inc. * 1,300,000
60,000 Ostex International, Inc. * 1,155,000
180,000 Respironics, Inc. * 3,780,000
65,000 Sofamor/Danek Group, Inc. * 1,844,375
132,500 Tecnol Medical Products, Inc. * 2,385,000
243,750 VIVRA Incorporated * 6,124,219
__________
41,688,994
__________
INDUSTRIAL PRODUCTS AND SERVICES - 4.2%
47,000 Gelman Sciences Inc. * 1,186,750
50,000 Pacific Scientific Company 1,237,500
25,000 Republic Industries, Inc. * 903,125
81,100 ThermoSpectra Corporation * 1,267,187
135,000 U.S. Can Corporation * 1,822,500
44,000 X-Rite, Incorporated 621,500
__________
7,038,562
__________
INSURANCE - 9.2%
122,430 Capitol Transamerica Corporation 2,479,208
15,000 First Commonwealth, Inc. * 390,000
63,600 Healthsource, Inc. * 2,289,600
60,000 HealthWise of America, Inc. * 2,340,000
40,000 PMI Group, Inc. (The) 1,810,000
138,000 Poe & Brown, Inc. 3,432,750
70,000 Protective Life Corporation 2,187,500
17,800 United Dental Care, Inc. * 734,250
__________
15,663,308
__________
PRINTING AND PUBLISHING - 1.4%
93,425 American List Corporation 2,382,338
__________
REAL ESTATE - 2.3%
119,000 National Health Investors, Inc. 3,941,875
__________
RETAIL TRADE - 2.9%
119,125 Heilig-Meyers Company 2,188,922
51,500 Kohl's Corporation * 2,703,750
__________
4,892,672
__________
<PAGE>
Schedule of Investments (Continued)
December 31, 1995
SHARES OR QUOTED
PRINCIPAL MARKET
AMOUNT VALUE
_________ ___________
(Note 1 (a))
COMMON STOCKS - 95.4% (Continued)
TRANSPORTATION - 8.0%
176,600 Arnold Industries, Inc. $ 3,068,425
346,792 Heartland Express, Inc. * 6,849,142
150,000 Knight Transportation, Inc. * 2,062,500
125,000 Landair Services, Inc. * 1,656,250
__________
13,636,317
__________
MISCELLANEOUS - 5.2%
37,510 International Speedway Corporation 8,852,360
__________
8,852,360
__________
TOTAL COMMON STOCKS
(cost $99,752,302) 161,702,064
__________
CONVERTIBLE BOND - 2.3%
$1,560,000 National Healthcare L.P.
6.00%, 7/1/00 3,987,750
__________
TOTAL CONVERTIBLE BOND
(cost $2,995,200) 3,987,750
__________
* Nondividend paying security
SHORT-TERM INVESTMENTS - 2.4%
COMMERCIAL PAPER - 1.8%
$1,000,000 American Bankers Insurance Group, Inc.
6.05%, due January 12, 1996 $ 998,319
2,100,000 Briggs & Stratton Corporation
6.05%, due January 31, 1996 2,089,765
___________
3,088,084
___________
VARIABLE DEMAND NOTES - 0.6%
296,500 Sara Lee Corporation
5.47%, due January 2, 1996 296,500
697,800 Southwestern Bell Telephone Company
5.72%, due January 2, 1996 697,800
___________
994,300
___________
TOTAL SHORT-TERM INVESTMENTS
(cost $4,073,914) 4,082,384
___________
TOTAL INVESTMENTS 169,772,198
___________
LIABILITIES, NET OF
CASH AND RECEIVABLES - (0.1%) (203,518)
___________
TOTAL NET ASSETS
(Basis of percentages
disclosed above) $169,568,680
___________
___________
The accompanying notes to financial statements are an integral
part of this schedule.
<PAGE>
Statement of Assets and Liabilities
December 31, 1995
ASSETS:
Investments in securities at market value
(cost $106,821,416) (Note 1 (a)) $169,772,198
Cash 102,642
Receivables -
Investment securities sold 2,495,897
Dividends and interest 167,323
___________
Total receivables 2,663,220
___________
Total assets 172,538,060
___________
LIABILITIES:
Payables -
Investment securities purchased 1,209,393
Management fee (Note 2) 110,259
Dividends payable 1,592,701
Other payables and accrued expenses 57,027
___________
Total liabilities 2,969,380
___________
Total net assets $169,568,680
___________
___________
NET ASSETS CONSIST OF:
Fund shares issued and outstanding $106,626,368
Net unrealized appreciation on
investments (Note 3) 62,942,312
___________
$169,568,680
___________
___________
NET ASSET VALUE PER SHARE ($.01 par value,
14,000,000 shares authorized), offering price
and redemption price ($169,568,680 divided by
8,821,639 shares outstanding) $19.22
______
______
The accompanying notes to financial statements are an integral
part of this statement.
<PAGE>
Statement of Operations
For the year ended December 31, 1995
INCOME:
Dividends -
Nonaffiliated issuers $1,484,170
Affiliated issuers (Note 5) 34,284
Interest 465,462
Miscellaneous 1,335
----------
1,985,251
----------
EXPENSES:
Management fee (Note 2) 1,167,360
Transfer agent fees 99,622
Registration fees 32,967
Legal fees 26,886
Custodian fees 23,523
Audit and tax consulting fees 18,150
Postage 13,628
Printing 10,653
Telephone 2,900
Insurance 2,098
Directors' fees 1,200
Other operating expenses 1,051
----------
1,400,038
----------
Net investment income 585,213
----------
NET REALIZED GAINS ON INVESTMENTS (Note 1 (b)):
Nonaffiliated issuers 21,095,881
Affiliated issuers (Note 5) 1,473,974
----------
22,569,855
----------
NET INCREASE IN UNREALIZED APPRECIATION ON INVESTMENTS 17,738,854
----------
Net gain on investments 40,308,709
----------
Net increase in net assets resulting
from operations $40,893,922
----------
----------
The accompanying notes to financial statements are an integral
part of this statement.
<PAGE>
Statements of Changes in Net Assets
For the years ended December 31, 1995 and 1994
1995 1994
----------- -----------
OPERATIONS:
Net investment income $ 585,213 $ 814,463
Net realized gains on
investments (Note 1 (b)) 22,569,855 8,107,904
Net increase (decrease) in
unrealized appreciation on investments 17,738,854 (13,974,459)
----------- -----------
Net increase (decrease) in net
assets resulting from operations 40,893,922 (5,052,092)
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net investment
income ($0.0761 and $0.1031 per
share, respectively) (585,213) (814,463)
Distributions from net realized
gains on investments ($2.9353 and
$0.9065 per share, respectively) (22,569,855) (7,159,489)
----------- -----------
Total distributions (23,155,068) (7,973,952)
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued
(912,733 and 0 shares, respectively)
(Note 1 (f)) 17,514,151 ---
Net asset value of shares issued in
distributions to shareholders (1,127,739
and 445,632 shares, respectively) 21,562,367 7,526,726
Cost of shares redeemed (1,561,078
and 1,781,589 shares, respectively) (29,849,025) (32,655,691)
----------- -----------
Increase (decrease) in net
assets derived from capital
share transactions 9,227,493 (25,128,965)
----------- -----------
Total increase (decrease)
in net assets 26,966,347 (38,155,009)
----------- -----------
NET ASSETS, at the beginning of the year 142,602,333 180,757,342
----------- -----------
NET ASSETS, at the end of the year $169,568,680 $142,602,333
----------- -----------
----------- -----------
The accompanying notes to financial statements are an integral
part of these statements.
<PAGE>
Historical Record (unaudited)
<TABLE>
<CAPTION>
DOLLAR GROWTH OF
NET DIVIDEND CAPITAL GAIN WEIGHTED AN INITIAL
ASSET VALUE DISTRIBUTIONS DISTRIBUTIONS PRICE/EARNINGS $10,000
PER SHARE PER SHARE PER SHARE RATIO** INVESTMENT***
----------- ----------- ----------- ------------ ----------
<S> <C> <C> <C> <C> <C>
May 18, 1987 * $10.00 $ - $ - - $10,000
June 30, 1987 10.15 - - 20.2 times 10,150
December 31, 1987 9.15 .0900 - 13.9 9,242
June 30, 1988 11.25 - - 13.3 11,363
December 31, 1988 11.29 .0969 .2527 14.1 11,762
June 30, 1989 12.38 - - 14.4 12,897
December 31, 1989 12.49 .1453 .6151 16.3 13,804
June 30, 1990 13.33 - - 16.2 14,732
December 31, 1990 12.03 .1207 .1213 14.2 13,566
June 30, 1991 15.00 - - 16.9 16,915
December 31, 1991 16.86 .1228 .2407 21.9 19,429
June 30, 1992 16.27 - - 17.3 18,749
December 31, 1992 18.77 .0815 .8275 18.8 22,690
June 30, 1993 18.89 - - 18.1 22,835
December 31, 1993 18.68 .0867 1.6782 20.4 24,738
June 30, 1994 17.64 - - 18.1 23,360
December 31, 1994 17.09 .1031 (a) .9065 (a) 18.3 23,985
June 30, 1995 19.31 - - 20.0 27,101
December 31, 1995 19.22 .0761 (b) 2.9353 (b) 25.2 31,223
</TABLE>
* Date of Initial Public Offering (a) Paid December 31, 1994
** Based on latest 12 months to shareholders of record
accomplished earnings December 29, 1994.
*** Assuming reinvestment of all (b) Paid December 31, 1995
distributions to shareholders of record
December 28, 1995.
Range in price/earnings ratios
High Low
- -------------- -------------
12/31/95 25.2 6/30/88 13.3
<PAGE>
Financial Highlights
(For a share outstanding throughout each year)
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987*
---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR $17.09 $18.68 $18.77 $16.86 $12.03 $12.49 $11.29 $ 9.15 $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .08 .10 .09 .08 .12 .12 .15 .10 .09
Net gains or (losses) on securities
(realized and unrealized) 5.07 (.68) 1.59 2.74 5.07 (.34) 1.82 2.39 (.85)
------ ------ ------ ------ ------ ------ ------ ------ ------
Total from investment operations 5.15 (.58) 1.68 2.82 5.19 (.22) 1.97 2.49 (.76)
------ ------ ------ ------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends (from net
investment income) (.08) (.10) (0.09) (.08) (.12) (.12) (.15) (.10) (.09)
Distributions (from capital gains) (2.94) (.91) (1.57) (.83) (.24) (.12) (.62) (.25) -
Distributions (in excess of book
realized gains)(Note 1 (d)) - - (0.11) - - - - - -
------ ------ ------ ------ ------ ------ ------ ------ ------
Total distributions (3.02) (1.01) (1.77) (.91) (.36) (.24) (.77) (.35) (.09)
------ ------ ------ ------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF YEAR $19.22 $17.09 $18.68 $18.77 $16.86 $12.03 $12.49 $11.29 $ 9.15
------ ------ ------ ------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------ ------ ------ ------
TOTAL RETURN 30.18% (3.04%) 9.03% 16.78% 43.22% (1.73%) 17.36% 27.26% (7.58%)**
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (millions) $169.6 $142.6 $180.8 $190.2 $175.3 $70.9 $57.3 $33.0 $19.3
Ratio of expenses to
average net assets .90% .90% .88% .92% .94% 1.07% 1.12% 1.32% 1.48%***
Ratio of net investment
income to average net assets .38% .52% .42% .45% 1.05% 1.10% 1.37% 1.03% 2.21%***
Portfolio turnover rate 35.77% 16.29% 24.35% 24.44% 12.62% 15.15% 30.65% 30.69% 0%
Average commission rate paid by the
Fund on portfolio investment
transactions **** $0.045 - - - - - - - -
</TABLE>
* For the period from May 18, 1987 (date of initial public
offering) through December 31,1987.
** Not annualized
*** Annualized
**** Disclosure of this rate is required by the Securities
and Exchange Commission on a prospective basis beginning
with the Fund's 1996 fiscal year end. The Fund has chosen
to disclose this rate beginning in fiscal 1995.
The accompanying notes to financial statements are an integral
part of these statements.
<PAGE>
Notes to Financial Statements
December 31, 1995
(1) Summary of Significant Accounting Policies -
The Fund is an open-end, diversified management investment
company registered under the Investment Company Act of 1940,
as amended. The primary objective of the Fund is long-term
growth. Current income is a small factor in considering the
selection of investments. The following is a summary of the
significant accounting policies of Nicholas Limited Edition,
Inc. (the "Fund"):
(a) Each security,excluding short-term investments, is valued
at the last sale price reported by the principal security
exchange on which the issue is traded, or if no sale is
reported, the latest bid price. Variable demand notes
are valued at cost which approximates market value.
U.S. Treasury Bills and commercial paper are stated at
market value with the resultant difference between
market value and original purchase price being recorded
as interest income. Investment transactions are
recorded no later than the first business day after the
trade date. Cost amounts, as reported on the schedule of
investments and the statement of assets and liabilities,
are the same for Federal income tax purposes.
(b) Net realized gains and losses on common stocks were
computed on the basis of specific certificates.
(c) Provision has not been made for Federal income taxes or
excise taxes since the Fund has elected to be taxed as a
"regulated investment company" and intends to distribute
substantially all taxable income to its shareholders and
otherwise comply with the provisions of the Internal
Revenue Code applicable to regulated investment
companies.
(d) Excess distributions of book realized gains is the
result of different accounting treatment for book and
tax purposes and should not be treated as a return of
capital for income tax reporting. The Fund is required
to distribute at least 98 percent of realized gains
through October 31 to avoid paying a federal excise tax.
The excess distribution in 1993 generally represents
losses on the sale of portfolio securities in the months
of November and December. The losses were used to
offset future gains.
(e) Dividend income and distributions to shareholders are
recorded on the ex-dividend date. Non-cash dividends,
if any, are recorded at fair market value on date of
distribution.
(2) Investment Adviser and Management Agreement -
The Fund has an agreement with Nicholas Company, Inc. (with
whom certain officers and directors of the Fund are
affiliated) to serve as investment adviser and manager.
Under the terms of the agreement, a monthly fee is paid to
the investment adviser based on 1/16th of 1% (.75 of 1% on an
annual basis) of the average net asset value. Also, the
investment adviser may be reimbursed for clerical and
administrative services rendered by its personnel. The
advisory agreement is subject to an annual review by the
Directors of the Fund.
(3) Net Unrealized Appreciation -
Aggregate gross unrealized appreciation (depreciation) as of
December 31, 1995, based on investment cost for Federal tax
purposes is as follows:
Aggregate gross unrealized
appreciation on investments $65,761,630
Aggregate gross unrealized
depreciation on investments (2,819,318)
----------
Net unrealized appreciation $62,942,312
----------
----------
(4) Investment Transactions -
For the year ended December 31, 1995, the cost of purchases
and the proceeds from sales of investments, other than short-
term obligations, aggregated $53,212,114 and $61,530,773,
respectively.
<PAGE>
Notes to Financial Statements (Continued)
December 31, 1995
(5) Transactions with Affiliates -
Following is an analysis of 1995 transactions with "affiliated
companies" as defined by the Investment Company Act of 1940:
<TABLE>
<CAPTION>
Amount of
Amount of Capital Gain
Dividends Realized
Share Activity Credited on Sale
----------------------------------------------- to Income of Shares
Balance Balance in Fiscal in Fiscal
Security Name 12/31/94 Purchases Sales 6/30/95 1995 1995
- ------------- -------- --------- ----- ------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Brandon Systems Corporation (a) 224,218 - 115,000 109,218 $34,284 $1,473,974
</TABLE>
(a) As of December 31, 1995, the Fund is no longer
affiliated with this company.
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Shareholders and Board of Directors
of Nicholas Limited Edition, Inc.:
We have audited the accompanying statement of assets and
liabilities of NICHOLAS LIMITED EDITION, INC. (a Maryland
corporation), including the schedule of investments, as of
December 31, 1995, the related statement of operations for the
year then ended, the statements of changes in net assets for each
of the two years in the period then ended, and the financial
highlights for the periods presented. These financial statements
and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these
financial statements and financial highlights 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 and financial highlights are free of material
misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities
owned as of December 31, 1995, by correspondence with the
custodian and brokers. As to securities purchased but not
received, we requested confirmation from brokers and, when replies
were not received, we carried out other alternative auditing
procedures. 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 and financial
highlights referred to above present fairly, in all material
respects, the financial position of Nicholas Limited Edition, Inc.
as of December 31, 1995, the results of its operations for the
year then ended, the changes in its net assets for each of the two
years in the period then ended, and the financial highlights for
the periods presented, in conformity with generally accepted
accounting principles.
ARTHUR ANDERSEN LLP
Milwaukee, Wisconsin,
January 16, 1996.
<PAGE>
Portfolio Company Statistics
December 31, 1995 (unaudited)
<TABLE>
<CAPTION>
Latest Latest Five Year Market Latest to Book Debt
12 Month 12 Month Compounded Return Price Book 12 Month Value as a
Sales (1) Earnings Earnings on Per Value Earnings Per % of Dividend
Name and Principal Business of Company (Millions) PerShare(1) Growth Equity Share Per Share Per Share Share Capital Yield
- -------------------------------------- -------- ---------- -------- ------- ----- --------- --------- ----- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
American HomePatient, Inc. -
Diversified home health care $ 140 $ 1.24 NA 23.00% $29.500 $15.27 23.8 1.9 38% None
American List Corporation -
Collecting & selling mailing lists 16 1.49 10.12% 26.36% 25.500 2.70 17.1 9.4 0% 1.0%
Analysts International Corporation -
Computer programming services 243 1.59 12.50% 25.00% 30.000 4.53 18.9 6.6 0% 3.1%
Arnold Industries, Inc. -
Motor carrier industry 329 1.25 10.63% 20.30% 17.375 6.40 13.9 2.7 0% 2.3%
Ballard Medical Products -
Manufactures disposable medical products 82 0.74 23.90% 29.20% 17.875 3.28 24.2 5.4 0% 0.5%
Brandon Systems Corporation -
Temporary computer personnel services 81 1.32 19.75% 14.71% 25.625 4.73 19.4 5.4 0% 2.9%
Capitol Transamerica Corporation -
Property and casualty insurance 63 1.51 1.66% 17.80% 20.250 8.88 13.4 2.3 0% 2.2%
Cardinal Health, Inc.-
Wholesale distributor drugs 8,020 2.10 38.81% 17.53% 54.750 12.98 26.1 4.2 29% 0.3%
DENTSPLY International Inc. -
Dental supplies and xray equipment 550 1.87 89.40% 22.90% 40.000 9.65 21.4 4.1 4% 1.0%
Elan Corporation, plc - ADR -
Drug formulating techniques 194 2.06 39.69% 22.60% 48.625 8.41 23.6 5.8 39% None
First Financial Corporation -
Savings & loan in Wisconsin 382 2.15 24.84% 18.59% 23.000 11.21 10.7 2.1 71% 2.7%
First Merchants Acceptance Corporation -
Specialty consumer finance company 36 1.29 NA 14.75% 18.500 6.75 14.3 2.7 80% None
Firstar Corporation -
Commercial banking, WI, IL,
MN, AZ and IA 1,273 2.82 10.06% 14.19% 39.625 19.90 14.1 2.0 63% 4.5%
Forest Laboratories, Inc. -
Pharmaceutical manufacturer 436 2.33 24.34% 15.20% 45.250 14.95 19.4 3.0 0% None
Haemonetics Corporation -
Manufactures blood collection systems 271 1.25 23.54% 19.00% 17.750 6.79 14.2 2.6 17% None
Healthsource, Inc. -
Multi-state HMO services 990 0.76 23.59% 14.50% 36.000 5.25 47.4 6.9 0% None
HealthWise of America, Inc. -
Operates HMOs 196 1.23 92.60% 39.89% 39.000 3.49 31.7 11.2 42% None
Heartland Express, Inc. -
Short-haul, high service trucker 191 0.92 10.28% 21.90% 19.750 5.37 21.5 3.7 0% None
Heilig-Meyers Company -
Retail furniture stores 1,318 1.07 21.31% 14.30% 18.375 10.20 17.2 1.8 42% 1.3%
International Speedway Corporation -
Operates motor sports facilities 84 8.01 17.81% 21.50% 236.000 37.18 29.5 6.3 40% 0.6%
Keane, Inc. -
Software programming services 369 1.23 23.11% 16.10% 22.125 9.04 18.0 2.4 31% None
Key Corp Finance Inc. -
Commercial banking, Ohio 5,373 3.23 14.15% 19.09% 36.250 20.74 11.2 1.7 72% 4.3%
<PAGE>
Portfolio Company Statistics - (Continued)
December 31, 1995 (unaudited)
Latest Latest Five Year Market Latest to Book Debt
12 Month 12 Month Compounded Return Price Book 12 Month Value as a
Sales (1) Earnings Earnings on Per Value Earnings Per % of Dividend
Name and Principal Business of Company (Millions) PerShare(1) Growth Equity Share Per Share Per Share Share Capital Yield
- -------------------------------------- -------- ---------- -------- ------- ----- --------- --------- ----- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Knight Transportation, Inc. -
Trucking - general commodities $ 46 $0.60 NA 34.00% $13.750 $ 2.08 22.9 6.6 10% None
Kohl's Corporation -
Operates department stores 1,783 1.98 NM 25.00% 52.500 9.72 26.5 5.4 17% None
Marcus Corporation (The) -
Operates theatres; restaurants 255 1.30 14.38% 12.00% 27.375 8.96 21.1 3.1 45% 1.3%
Marshall & Ilsley Corporation -
Commercial banking in WI and AZ 1,179 1.92 14.00% 17.00% 26.000 11.58 13.5 2.2 62% 3.1%
Medaphis Corporation -
Hospital/doctor management services 334 0.75 NM 12.00% 37.000 7.59 49.3 4.9 48% None
Mercury Finance Company -
Consumer finance/insurance 253 0.59 35.84% 43.80% 13.250 1.33 22.3 10.0 77% 2.2%
Monro Muffler Brake, Inc. -
Provides auto repair services 108 1.07 19.31% 21.80% 13.875 6.57 13.0 2.1 42% None
National Health Investors, Inc.-
REIT in healthcare facilities 78 2.48 NA 17.40% 33.125 9.17 13.4 3.6 63% 9.8%
National Surgery Centers, Inc.-
Operates ambulatory surgery centers 50 0.69 NA 15.00% 23.000 5.30 33.3 4.3 30% None
O'Reilly Automotive, Inc. -
Operates automotive parts stores 193 1.48 34.57% 14.30% 29.000 7.02 19.6 4.1 0% None
Poe & Brown, Inc. -
General insurance agency 102 1.49 17.48% 42.90% 24.875 4.49 16.7 5.5 14% 1.8%
Protective Life Corporation -
Holding: life, group, accident and health 848 2.72 26.61% 18.60% 31.250 15.22 11.5 2.1 23% 2.3%
Republic Automotive Parts, Inc. -
Auto parts distributor 146 1.15 40.86% 8.60% 12.875 10.48 11.2 1.2 17% None
Respironics, Inc. -
Home medical respiratory products 104 0.71 34.01% 21.00% 21.000 2.41 29.6 8.7 12% None
Security Capital Corporation -
Savings & loan; Wisconsin 220 2.65 NA 4.55% 60.250 52.80 22.7 1.1 40% None
Tecnol Medical Products, Inc. -
Disposable medical products 122 0.73 28.78% 19.20% 18.000 4.06 24.7 4.4 14% None
TESSCO Technologies Incorporated -
Distributes wireless
communication products 79 0.73 21.67% 18.00% 28.500 4.35 39.0 6.6 0% None
VIVRA Incorporated -
Dialysis and home health care 344 1.09 26.94% 14.40% 25.125 6.87 23.1 3.7 4% None
---- ---- ------ ------ ------ ----- ---- --- --- ----
AVERAGE 26.45% 20.20% 21.6x 4.4x 27% 1.2%
---- ---- ------ ------ ------ ----- ---- --- --- ----
---- ---- ------ ------ ------ ----- ---- --- --- ----
</TABLE>
Note - This list contains the top 40 portfolio issues exceeding
$2,002,000 in market value. (1) Source: Corporate Reports.
NA - Not available.
NM - Not meaningful.
<PAGE>
Officers and Directors
ALBERT O. NICHOLAS
President and Director
THOMAS J. SAEGER
Executive Vice President, Secretary and Director
MELVIN L. SCHULTZ
Director
DAVID L. JOHNSON
Executive Vice President
LYNN S. NICHOLAS
Senior Vice President
DAVID O. NICHOLAS
Senior Vice President
CANDACE L. LESAK
Vice President
JEFFREY T. MAY
Vice President
JOHN J. O'HARE II
Assistant Vice President
MARY C. GOSEWEHR
Treasurer
Investment Adviser
NICHOLAS COMPANY, INC.
Milwaukee
Custodian and Transfer Agent
FIRSTAR TRUST COMPANY
Milwaukee 414/276-0535
Independent Public Accountants
ARTHUR ANDERSEN LLP
Milwaukee
Counsel
MICHAEL, BEST & FRIEDRICH
Milwaukee
100%
NO-LOAD TM
MUTUAL FUND
COUNCIL
This report is submitted for the information of shareholders of
the Fund. It is not authorized for distribution to prospective
investors unless preceded or accompanied by an effective
prospectus. ANNUAL REPORT
NICHOLAS
LIMITED EDITION, INC.
700 North
Water Street
Milwaukee,
Wisconsin 53202
December 31, 1995
