<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________________________
FORM-10Q
(MARK ONE)
X - QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE
QUARTERLY PERIOD ENDED SEPTEMBER 30, 1995 OR
- TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE
TRANSITION PERIOD FROM ________ TO _________
Commission File Number 0-2129
__________________________________
THE RAYMOND CORPORATION
(Exact name of registrant as specified in its charter)
SOUTH CANAL STREET, GREENE, NEW YORK 13778
(Address of registrants's principal executive office)
(607) 656-2311
(Registrant's telephone number)
New York 15-0372290
(State of Incorporation) (I.R.S. Employer
Identification Number)
__________________________________
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Sectons 13 or 15(d) of the Securites
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____
The number of shares of common stock outstanding as of
October 31, 1995 was 7,078,470.
<PAGE>
THE RAYMOND CORPORATION
INDEX to FORM-10Q
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION Page
------
<S> <C>
Item 1 - Financial Statements
Condensed Consolidated Balance Sheets - September 30, 1995
and December 31, 1994 3 - 4
Condensed Consolidated Statements of Income - Quarters
and Nine Month Periods ended September 30, 1995 and
September 30, 1994 5
Condensed Consolidated Statements of Cash Flows - Nine Month
Periods ended September 30, 1995 and September 30, 1994. 6 - 7
Notes to Condensed Consolidated Financial Statements 8 - 10
Item 2 - Management's Discussion and Analysis of Financial
Condition and Results of Operations 11 - 15
PART II. OTHER INFORMATION
Item 6 - Exhibits and Reports on Form 8-K 16
Signature 16
</TABLE>
<PAGE>
Part I - Financial Information
Item I - Financial Statements
THE RAYMOND CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited) (note)
ASSETS 9/30/95 12/31/94
____________________________________________________________________________
Manufacturing Current Assets:
Cash and cash equivalents $6,898,589 $5,351,161
Accounts receivable, net 43,625,396 32,910,361
Inventories 35,730,437 30,911,341
Recoverable income taxes 1,178,781 --
Deferred income taxes* 5,264,243 3,764,243
Prepaid expenses and other current assets 4,845,058 4,656,816
____________ ____________
Total Manufacturing Current Assets 97,542,504 77,593,922
Investments in and advances to unconsolidated
investees, at equity 20,356,005 16,666,728
Property, plant and equipment, at cost 51,801,561 46,896,174
Less accumulated depreciation (30,470,777) (29,947,379)
____________ ____________
Net property, plant and equipment 21,330,784 16,948,795
Other non-current assets 4,274,781 5,775,276
____________ ____________
Total Manufacturing Assets 143,504,074 116,984,721
____________ ____________
Financial Services:
Cash and cash equivalents 9,192 72,302
Investment in leases, net 100,393,629 84,724,886
Property, plant and equipment, at cost 372,483 234,712
Less accumulated depreciation (184,576) (162,654)
____________ ____________
Net property, plant and equipment 187,907 72,058
Rental equipment, at cost 4,423,590 4,327,691
Less accumulated depreciation (2,109,722) (2,004,464)
____________ ____________
Net rental equipment 2,313,868 2,323,227
Other assets 256,985 198,550
____________ ____________
Total Financial Services Assets 103,161,581 87,391,023
____________ ____________
Total Assets $246,665,655 $204,375,744
============ ============
*Includes both manufacturing and financial services.
Note: The December 31, 1994 balance sheet has been derived from
audited financial statements
The accompanying notes are a part of the financial statements.
<PAGE>
THE RAYMOND CORPORATION AND SUBSIDIARIES
(unaudited) (note)
LIABILITIES AND SHAREHOLDERS' EQUITY 9/30/95 12/31/94
____________________________________________________________________________
Manufacturing Current Liabilities:
Accounts payable $15,706,071 $14,194,244
Accrued liabilities 23,983,794 16,782,258
____________ ____________
Total Manufacturing Current Liabilities 39,689,865 30,976,502
Subordinated convertible debentures 51,260,000 57,500,000
Deferred income taxes* 3,845,390 4,184,235
Other liabilities 3,472,036 2,527,320
____________ ____________
Total Manufacturing Liabilities 98,267,291 95,188,057
____________ ____________
Financial Services:
Income taxes* and accrued expenses 5,932,821 4,035,472
Notes payable - banks 29,150,000 6,437,500
Notes payable - insurance companies 14,858,000 17,715,000
____________ ____________
Total Financial Services Liabilities 49,940,821 28,187,972
____________ ____________
SHAREHOLDERS' EQUITY
Common stock (7,100,444 issued in 1995;
6,364,221 issued in 1994) 10,650,666 9,546,332
Capital surplus 23,643,394 12,712,723
Retained earnings 66,432,873 62,566,473
Cumulative translation adjustments (1,961,021) (3,515,662)
Treasury stock, at cost (308,369) (310,151)
____________ ____________
Total Shareholders' Equity 98,457,543 80,999,715
____________ ____________
Total Liabilities and Shareholders' Equity $246,665,655 $204,375,744
============ ============
*Includes both manufacturing and financial services.
Note: The December 31, 1994 balance sheet has been derived from
audited financial statements
The accompanying notes are a part of the financial statements.
<PAGE>
THE RAYMOND CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
<TABLE>
<CAPTION>
3 Month period ended 9 Month period ended
September 30, September 30,
1995 1994 1995 1994
____________ ____________ ____________ ____________
<S> <C> <C> <C> <C>
REVENUES
Net sales $65,418,877 $51,412,533 $204,481,791 $155,554,900
Rental revenues 456,939 539,172 1,360,735 1,306,114
Lease finance revenues 2,470,979 1,814,653 6,854,218 5,068,806
Other income 611,813 114,302 2,111,928 1,734,502
____________ ____________ ____________ ____________
Total Revenues 68,958,608 53,880,660 214,808,672 163,664,322
____________ ____________ ____________ ____________
COSTS AND EXPENSES
Cost of sales 51,893,995 40,612,545 159,240,448 121,197,496
Cost of rentals 384,136 503,479 1,225,716 1,399,088
Selling, general and administrative 7,637,507 6,043,416 25,853,664 20,129,220
Employees' profit sharing 926,769 673,621 2,867,853 1,857,398
Interest expense
Lease financing 833,194 598,223 2,088,165 1,837,098
Other 902,627 991,761 2,843,467 2,959,253
Other expenses 1,768,509 1,016,599 5,259,761 3,436,024
____________ ____________ ____________ ____________
Total Costs and Expenses 64,346,737 50,439,644 199,379,074 152,815,577
____________ ____________ ____________ ____________
INCOME BEFORE TAXES AND EQUITY IN NET
EARNINGS OF UNCONSOLIDATED INVESTEES 4,611,871 3,441,016 15,429,598 10,848,745
Income tax expense 1,708,761 1,381,413 6,106,217 4,421,648
____________ ____________ ____________ ____________
Income before equity in net
earnings of unconsolidated investees 2,903,110 2,059,603 9,323,381 6,427,097
Equity in net earnings of unconsolidated investees 98,438 93,823 238,227 194,082
____________ ____________ ____________ ____________
NET INCOME $3,001,548 $2,153,426 $9,561,608 $6,621,179
============ ============ ============ ============
NET INCOME PER SHARE:
Primary $0.43 $0.32 * $1.41 $1.00 *
============ ============ ============ ============
Fully Diluted $0.35 $0.27 * $1.12 $0.84 *
============ ============ ============ ============
</TABLE>
* Adjusted for the 1995 5% stock dividend
The accompanying notes are a part of the financial statements.
<PAGE>
THE RAYMOND CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
9 Month period ended September 30, 1995 1994
____________ ____________
CASH FLOWS FROM OPERATING ACTIVITIES
____________________________________
Net income $9,561,608 $6,621,179
Adjustments to reconcile net income to net cash
used for operating activities:
Depreciation and amortization 3,567,898 3,060,522
Provision for losses on accounts receivable
and investment in leases 1,083,000 600,000
Earnings of unconsolidated investees,
net of dividends (238,227) (194,082)
Foreign currency transaction losses (gains) 352,889 (188,434)
Acquisition of rental equipment (1,051,121) (1,575,155)
Gains on dispositions of rental
equipment (689,324) (460,917)
Proceeds from rental fleet sales 1,146,670 1,145,205
Losses (gains) on sale of property, plant and
equipment 46,898 (4,089)
Other items, net (424,440) 641,692
Changes in operating assets and liabilities:
Increase in accounts receivable (11,263,646) (4,900,296)
Increase in investment in leases (16,136,743) (12,110,456)
Increase in inventories, prepaid expenses
and other current assets (6,118,597) (7,744,895)
Increase in accounts payable and
accrued expenses 10,479,632 9,791,873
____________ ____________
Net cash used for
operating activities (9,683,503) (5,317,853)
____________ ____________
CASH FLOWS FROM INVESTING ACTIVITIES
____________________________________
Additions to property, plant and equipment (5,397,521) (2,909,390)
Proceeds received from sales of property,
plant and equipment 28,528 7,500
Investment in, and advances to, unconsolidated
investees (3,595,111) (2,211,650)
____________ ____________
Net cash used for
investing activities (8,964,104) (5,113,540)
____________ ____________
The accompanying notes are a part of the financial statements.
<PAGE>
THE RAYMOND CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
9 Month period ended September 30, 1995 1994
____________ ____________
CASH FLOWS FROM FINANCING ACTIVITIES
____________________________________
Net repayments under lines of credit (1,000,000) --
Repayment of long term debt (5,144,500) (6,651,500)
Proceeds from long term debt 26,000,000 --
Capital stock transactions, net 101,579 121,171
____________ ____________
Net cash provided by (used for) financing
activities 19,957,079 (6,530,329)
------------ ------------
Effect of foreign currency rate fluctuations
on cash and cash equivalents 174,846 (99,129)
------------ ------------
Increase (Decrease) in cash and cash equivalents 1,484,318 (17,060,851)
Cash and cash equivalents at January 1, 5,423,463 28,654,488
------------ ------------
Cash and cash equivalents at September 30, $6,907,781 $11,593,637
============ ============
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
________________________________________________
Cash paid during the year for:
Income taxes, net of refunds $8,100,197 $3,477,268
Interest $3,884,088 $3,583,200
Noncash activities:
Property acquired in exchange for retirement
of mortgage receivable $1,500,000 --
Common stock issued for conversion
of debentures $6,240,000 --
The accompanying notes are a part of the financial statements.
<PAGE>
THE RAYMOND CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. Basis of Presentation
- --- ---------------------
The unaudited financial statements presented herein have been prepared
in accordance with the instructions to Form 10-Q and do not include all
of the information and note disclosures required by generally accepted
accounting principles. These statements should be read in conjunction
with the Company's financial statements and notes thereto in its 1994
Annual Report to Shareholders which is incorporated by reference in its
entirety on Form 10-K for the year ended December 31, 1994. The ac-
companying financial statements have not been examined by independent
accountants, but in the opinion of management such financial statements
include all adjustments, consisting only of normal recurring adjustments,
necessary to summarize fairly the Company's financial position at Sept-
ember 30, 1995 and results of operations for the three and nine month
periods then ended. The results of operations for the interim periods
presented may not be indicative of the results that may be expected for
the year.
2. Inventories
- --- -----------
The composition of inventories was:
9/30/95 12/31/94
__________________________
Materials $12,431,325 $10,310,528
Work in process 20,844,784 18,900,886
Finished goods 2,454,328 1,699,927
__________________________
$35,730,437 $30,911,341
==========================
3. Stock Dividend
- --- --------------
On March 4, 1995, the Board of Directors declared an irregular five
percent stock dividend on the Company's outstanding common stock. On
April 14, 1995, shareholders of record as of March 31, 1995 received
one additional share of stock for each twenty shares held. Earnings
per share and weighted average shares outstanding for 1994 have been
restated to reflect the five percent stock dividend.
<PAGE>
THE RAYMOND CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
4. Long-Term Debt
- --- --------------
In the nine months ended September 30, 1995, the Company and Raymond
Leasing Corporation entered into three separate Revolving Credit and
Term Loan Agreements which made available an additional $35.0 million.
The committed facilities provide for two year working capital lines of
credit which can be converted at the Company's option into three, four
or five year term loans.
In the nine months ended September 30, 1995, Raymond Leasing Corporation
borrowed a total of $20.0 million from these credit facilities under
four separate five year term loans. Interest rates on these borrowings
range from 6.78% to 7.97%.
Raymond Leasing Corporation also borrowed $6.0 million under a similar
existing credit facility for a five year term at 8.40% interest.
In the third quarter of 1995, $6.24 million of the Company's convertible
subordinated debentures were converted into 369,868 shares of common
stock at the original stated conversion rate (adjusted for stock
dividends) of approximately 59.27 shares for each $1,000 principal
amount of debentures.
5. Contingencies
- --- -------------
The Company is currently defending a number of products liability and
similar lawsuits involving industrial accidents. The Company views
these actions, and related expenses of administration, litigation and
insurance, as part of the ordinary course of its business. The Company
has a policy of aggressively defending products liability lawsuits,
which generally take several years to ultimately resolve. A combination
of self-insured retention and insurance is used to manage these risks and
management believes that the insurance coverage and reserves established
for self-insured risks are adequate. The effect of these lawsuits on
future results of operations cannot be predicted because any such effect
depends on the operating results of future periods and the amount and
timing of the resolution of these proceedings. The Company's Dealers
contribute to the funding of the Company's products liability program
and, in turn, the Company indemnifies the Dealers against products
liability expense and manages products liability claims.
<PAGE>
THE RAYMOND CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
5. Contingencies (Continued)
- --- -------------------------
The Company is also one of sixteen defendants in a private environmental
lawsuit. The plaintiffs have alleged that scrap metal purchased from
the Company was coated with certain solvents and/or cutting oils.
Plaintiffs have the burden of proving the nature and extent of the
Company's contribution to the site, as well as the burden of proving
what portion of the material delivered to the site was "hazardous" as
that term is defined in the environmental statutes. The Company is
aggressively defending the claim and does not believe it is likely to
have a material adverse effect on the Company.
<PAGE>
Part I - Financial Information
Item 2 - Management Discussion and Analysis of Financial
Condition and Results of Operations
A summary of the period changes in the principal items included in the
consolidated statements of income is shown below:
<TABLE>
<CAPTION>
(In thousands)
Changes from Changes from
3 Month period ended 9 Month period ended
September 30, 1994 to September 30, 1994 to
3 Month period ended 9 Month period ended
September 30, 1995 September 30, 1995
AMOUNT % AMOUNT %
_______ _______ _______ _______
<S> <C> <C> <C> <C>
TOTAL REVENUES $15,078 28% $51,144 31%
_______ _______ _______ _______
COSTS AND EXPENSES:
Cost of sales 11,162 27% 37,870 31%
Selling, general and administrative 1,594 26% 5,724 28%
Employees' profit sharing 253 38% 1,010 54%
Interest expense 146 9% 135 3%
Other expenses, net 752 74% 1,824 53%
_______ _______ _______ _______
13,907 28% 46,563 30%
_______ _______ _______ _______
INCOME BEFORE PROVISION FOR TAXES 1,171 34% 4,581 42%
INCOME TAX EXPENSE 327 24% 1,685 38%
_______ _______ _______ _______
844 41% 2,896 45%
EARNINGS OF UNCONSOLIDATED INVESTEES 5 5% 44 23%
_______ _______ _______ _______
NET INCOME $849 39% $2,940 44%
======= ======= ======= =======
</TABLE>
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
THE RAYMOND CORPORATION AND SUBSIDIARIES
Three Months and Nine Months ended September 30, 1995 compared to
Three Months and Nine Months ended September 30, 1994
Revenues
Total revenues for the three months ended September 30, 1995 increased by
approximately $15.1 million, or 28% to $69.0 million from the $53.9 million
reported for the three months ended September 30, 1994.
Total revenues were $214.8 million for the first nine months of 1995, up $51.1
million or 31% from the $163.7 million reported for the first nine months of
1994.
The substantial growth in revenues for the first nine months of 1995 as compared
to the first nine months of 1994 reflects a continuation of trends noted
throughout 1994 including the Company's success in expanding its distribution to
serve new and different markets as well as the overall growth in the North
American lift truck market. The Company's sales to its North American Dealer
Network increased as a result of the increased order entry rate experienced by
the industry as well as the continued success of its new products with the
intellidrive(R) controls technology and increased sales efforts through D.A.R.T.
(the Dealer Alliance for Recruiting and Training). D.A.R.T. is Raymond's program
to increase and improve the sales force at the Dealership level. Other major
increases in revenue were attained as a result of the successful launch of the
new Dockstocker(TM) product line of electric, stand-up counterbalanced lift
trucks, increased sales from O.E.M. agreements in both North America and Europe
for products manufactured by Raymond, and sales to Material Handling Associates,
Inc. (M.H.A.). M.H.A. is the Company's 50% owned joint venture company with
Mitsubishi Caterpillar Forklift America Inc. which distributes equipment
manufactured by Raymond through the Caterpillar distribution network. Sales of
repair and replacement parts and increased lease finance income also contributed
to the increase in revenues.
Other income reported for the third quarter of 1994 was depressed by net
currency exchange losses incurred by the Company's Canadian subsidiary. Foreign
exchange exposure on international operations is limited primarily to the
Canadian dollar and is minimized through the purchase of foreign currency
exchange contracts.
Cost of Sales
For the third quarter of 1995, cost of sales as a percentage of net sales was
79.3% as compared to 79.0% for the third quarter of 1994. Cost of sales as a
percentage of net sales was 77.9% for both the first nine months of 1995 and
1994.
As planned, the third quarter cost of sales percentage was impacted by the
annual production shutdown at both of the Company's manufacturing plants as well
as the one-time increased costs associated with the revitalization program for
the Greene facility.
<PAGE>
Selling, General and Administrative Expenses
For the third quarter of 1995, selling, general and administrative expenses were
$7.6 million or 11.1% of total revenues as compared to $6.0 million or 11.2% of
total revenues in the third quarter of 1994. Selling, general and administrative
expenses were $25.9 million or 12.0% of total revenues for the first nine months
of 1995 and $20.1 million or 12.3% of total revenues for the first nine months
of 1994.
The dollar level increases for both periods reflect increased benefit accruals,
expenses incurred to support the growth in sales volume and research and
development activities associated with the Company's continued product
development. These expenses included costs to launch the Dockstocker product
line and costs for the Company's International Sales Meeting held in February.
In addition, increased costs have been incurred in connection with an upgrade of
the Company's computer systems.
Interest Expense
Lease financing operations are conducted through Raymond Leasing Corporation, a
wholly-owned subsidiary of the Company. Lease financing interest expense is
reported net of charges on intercompany borrowings and was approximately $0.8
million in the quarter ended September 30, 1995 as compared with approximately
$0.6 million in the comparable quarter in 1994. For the nine month period ending
September 30, 1995, lease financing interest expense was $2.1 million versus the
$1.8 million reported through September 30, 1994. The increased expense reflects
the external borrowings described in Footnote 4 to this Form 10-Q incurred to
finance the growth of the lease portfolio. It is expected that lease financing
interest expense will continue to fluctuate with the volume of outstanding
leases.
Other interest expense incurred by the manufacturing divisions for both periods
presented for 1995 was comparable to the corresponding 1994 periods and consists
primarily of interest on the Company's convertible subordinated debentures.
Other Expenses
Other expenses were approximately $1.8 and $1.0 million, or 2.6% and 1.9% of
total revenues, for the quarters ending September 30, 1995 and 1994,
respectively. For the first nine months of 1995, other expenses were $5.3
million or 2.4% of revenues as compared to $3.4 million or 2.1% of revenue for
the first nine months of 1994. The primary components of other expenses are cash
discounts paid to Dealers for the timely payment of invoices and the provision
for losses on accounts and leases receivable. The increased provision for losses
on accounts and leases receivables and foreign currency exchange losses are main
components of the percentage increase in 1995. During the quarter, $6.24 million
or approximately 11% of the Company's originally issued $57.5 million of
convertible subordinated debentures were converted into common stock. The
corresponding expenses relating to the conversion of the debentures, including
the accelerated amortization of capitalized loan fees, were also included in
other expenses.
The increased provision for profit sharing reflects the increased profitability
of the Company. The formula for computing the profit sharing provision is
consistent for all periods presented.
<PAGE>
Income Tax Expense
During all periods reported, U.S. and foreign income tax provisions were
computed using the respective expected annual effective tax rates.
Earnings of Unconsolidated Investees
The Company's primary unconsolidated investee is G.N. Johnston Equipment Co.
Ltd. ("Johnston"), which is 45% owned by R.H.E. Ltd., a wholly-owned subsidiary
of the Company.
Johnston is the exclusive Canadian distributor for all of the Company's products
with sales and service outlets in the principal business regions of the Dominion
of Canada. Other unconsolidated investees include several Dealerships located
throughout the United States.
The equity in earnings of unconsolidated investees was at approximately the same
level for the corresponding periods reported.
Stock Dividend
On March 4, 1995, the Board of Directors declared an irregular 5% stock dividend
on the Company's outstanding common stock. On April 14, 1995, shareholders of
record as of March 31, 1995 received one additional share of stock for each
twenty shares held. Earnings per share and weighted average shares outstanding
for 1994 have been adjusted to reflect the 5% stock dividend.
Liquidity and Sources of Capital
At September 30, 1995, the Company's manufacturing working capital was $57.9
million and its ratio of manufacturing current assets to manufacturing current
liabilities was 2.5 to 1. At September 30, 1995, the Company and Raymond Leasing
Corporation, its wholly-owned leasing subsidiary, had unused lines of credit
aggregating $35.9 million, of which $12.5 million was available solely to
Raymond Leasing Corporation. These credit facilities enable Raymond Leasing
Corporation to obtain the external funds necessary to repay intercompany
borrowings from The Raymond Corporation.
Standard & Poor's has raised its credit rating of The Raymond Corporation's debt
to investment grade level. In taking this action, the credit rating agency cited
not only the Company's financial improvement but also its product technology and
increased market coverage. This upgrade should assist the Company when it
negotiates any future financing arrangements.
For the nine months ended September 30, 1995, $9.7 million was used to fund
operating activities compared to the $5.3 million used to fund operating
activities for the comparable 1994 period. The cash was used primarily to fund
the growth in the lease portfolio and the increase in other working capital
components necessary to support the higher sales volume.
Cash used for investing activities increased $3.9 million for the first nine
months of 1995 compared to the first nine months of 1994. This was primarily due
to planned increases in capital expenditures and the Company's minority equity
investment in additional dealerships serving key market areas.
<PAGE>
Cash flows from financing activities reflect the proceeds of long-term debt
obtained by Raymond Leasing Corporation to fund a portion of the continued
growth of the lease portfolio and repay intercompany borrowings. The 1994 debt
repayments include an accelerated payment made from the proceeds of the
convertible subordinated debt proceeds obtained in December 1993.
During the third quarter of 1995, $6.24 million of the Company's convertible
subordinated debentures were converted into 369,868 shares of common stock at
the original stated conversion rate (adjusted for stock dividends) of
approximately 59.27 shares for each $1,000 principal amount of debentures.
The Company does not currently pay a cash dividend. Payment of cash dividends in
the future will depend on a variety of factors including the Company's earnings,
cash flow and financial resources as well as certain debt covenants. At
September 30, 1995, approximately $11.6 million of consolidated retained
earnings were free of debt covenant restrictions on cash dividends. In addition,
Raymond Leasing Corporation is subject to certain debt agreements that limit
cash dividends and loans to the Company. These restrictions are not expected to
affect the Company's ability to meet its cash requirements.
Outlook
New equipment orders for the first nine months of 1995 were $198.5 million, up
11% from the $179.0 million reported for the first nine months of 1994.
The backlog (unfilled new equipment orders) was $72.1 million at September 30,
1995, up from the $67.4 million backlog reported at June 30, 1995 and down $6.0
million from the record backlog level reported at December 31, 1994. Although
the Company participates in what is known as a cyclical industry, it has
attempted to minimize this impact through increased participation in domestic
and international markets through joint venture and O.E.M. supply agreements as
well as the new Dockstocker product line. In the second quarter of 1995, the
Company entered into additional Original Equipment Manufacturing (O.E.M.)
agreements with Toyota Industrial Equipment, a division of Toyota Motor Sales,
U.S.A., Inc. and Mitsubishi Caterpillar Forklift America Inc. Under terms of
these agreements, Raymond will be manufacturing products for distribution within
North America in the near future. These agreements will help offset the effects
of a potentially flattening North American lift truck market.
The Greene, New York plant is undergoing a revitalization plan which is
scheduled to be completed by the end of 1996 and encompasses a major upgrading
of production equipment and processes. Several pieces of new equipment were
installed during the third quarter production shutdown. This factory
revitalization program will significantly upgrade the technology of the plant
and also increase its efficiency. The planned expenditures of approximately $12
million will be funded by a combination of internally generated resources and
existing credit facilities. In addition, the Company will receive assistance
from New York State and local government agencies in the form of grants for
employee training, a sales tax assistance program and an interest subsidy grant.
<PAGE>
Part II - Other Information
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
_________________________________________
A) Exhibits.
11 - Earnings Per Share computation
27 - Financial Data Schedule
B) Reports on Form 8-K.
There were no reports on Form 8-K filed for the three months ended
September 30, 1995.
Signature
__________
Pursuant to 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.
THE RAYMOND CORPORATION
Date: November 14, 1995 by: /S/ William B. Lynn
_________________ ______________________________
William B. Lynn
Executive Vice President
(Principal Financial Officer)
<PAGE>
THE RAYMOND CORPORATION
EXHIBIT 11
Computation of Earnings per Share
(In thousands except per share data)
<TABLE>
<CAPTION>
3 Month period ended 9 Month period ended
September 30, September 30,
1995 1994 (1) 1995 1994 (1)
PRIMARY ____________ ____________ ____________ ____________
<S> <C> <C> <C> <C>
Average shares outstanding 6,905 6,653 6,762 6,649
Net effect of dilutive stock options -
based on the treasury method
using average market price 57 79 66 71
___________ ___________ ___________ ___________
Total 6,962 6,732 6,828 6,720
=========== =========== =========== ===========
Net income $3,002 $2,153 $9,562 $6,621
=========== =========== =========== ===========
Per share amount $0.43 $0.32 $1.40 $0.99
====== ====== ====== ======
(2) (2)
FULLY DILUTED
Average shares outstanding 6,905 6,653 6,762 6,649
Net effect of dilutive stock options -
based on the treasury method using
the period end market price, if higher
than average market price 57 86 69 86
Assumed conversion of 6.50% convertible
subordinated debentures 3,201 3,408 3,339 3,408
___________ ___________ ___________ ___________
Total 10,163 10,147 10,170 10,143
=========== =========== =========== ===========
Net income $3,002 $2,153 $9,562 $6,621
Add 6.50% convertible subordinated
debentures interest, net of federal
income tax effect 549 617 1,783 1,850
___________ ___________ ___________ ___________
Total $3,551 $2,770 $11,345 $8,471
=========== =========== =========== ===========
Per share amount $0.35 $0.27 $1.12 $0.84
====== ====== ====== ======
</TABLE>
(1) Adjusted for the 1995 five percent stock dividend.
(2) Per share amounts reported in the year to date consolidated financial
statements of $1.41 in 1995 and 1.00 in 1994 exclude the net effect of
dilutive stock options as the aggregate dilution from these securities
was immaterial (less than three percent of earnings per common share
outstanding).
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
September 30, 1995 Form 10-Q and is qualified in its entirety by reference to
such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 6,908
<SECURITIES> 0
<RECEIVABLES> 45,239
<ALLOWANCES> 1,614
<INVENTORY> 35,730
<CURRENT-ASSETS> 97,543<F1>
<PP&E> 52,174
<DEPRECIATION> 30,655
<TOTAL-ASSETS> 246,666
<CURRENT-LIABILITIES> 39,690<F1>
<BONDS> 95,268
<COMMON> 10,651
0
0
<OTHER-SE> 87,807
<TOTAL-LIABILITY-AND-EQUITY> 246,666
<SALES> 204,482
<TOTAL-REVENUES> 214,809
<CGS> 159,240
<TOTAL-COSTS> 162,554
<OTHER-EXPENSES> 33,981
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,843
<INCOME-PRETAX> 15,668
<INCOME-TAX> 6,106
<INCOME-CONTINUING> 9,562
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 9,562
<EPS-PRIMARY> 1.41
<EPS-DILUTED> 1.12
<FN>
<F1>Reflects current portion of Manufacturing operations only as accounts for
Financial Services are presented in a non-classified format
</FN>
</TABLE>
