Page 1 of 17
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) of the Securities
Exchange Act of 1934 for the Quarter Ended June 30, 1995 or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) of the Securities
Exchange Act of 1934 for the Period ____________ to ____________.
Commission file number 1-11200
SILGAN CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 06-1207662
(State of Incorporation) (I.R.S. Employer Identification Number)
4 Landmark Square
Stamford, Connecticut 06901
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (203) 975-7110
Indicate by check mark whether 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 [ ]
As of August 10, 1995, the number of shares outstanding of each of the
issuer's classes of common stock is as follows:
Classes of shares of Number of
common stock outstanding, $0.01 par value shares outstanding
Class A 1
Class B 1<PAGE>
Page 2 of 17
Part I. Financial Information
Item 1. Financial Statements
SILGAN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, June 30, Dec. 31,
1995 1994 1994
(unaudited)(unaudited)(audited)
ASSETS
Current assets:
Cash and cash equivalents $ 836 $ 6,658 $ 2,665
Accounts receivable, net 74,926 77,216 65,229
Inventories 164,138 142,560 122,429
Prepaid expenses and other current
assets 6,123 3,873 8,044
Total current assets 246,023 230,307 198,367
Property, plant and equipment, net 255,453 281,580 251,810
Goodwill, net 29,389 23,669 30,009
Other assets 18,070 23,495 20,491
$548,935 $559,051 $500,677
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
Trade accounts payable $ 44,826 $ 49,814 $ 36,845
Accrued payroll and related costs 25,307 24,530 26,019
Accrued interest payable 1,735 1,746 1,713
Accrued expenses and other current
liabilities 17,394 13,281 17,542
Bank working capital loans 39,750 34,950 12,600
Current portion of long-term debt 19,514 20,000 21,968
Total current liabilities 148,526 144,321 116,687
Long-term debt 282,568 305,000 282,568
Deferred income taxes 13,017 12,957 13,017
Other long-term liabilities 25,239 35,000 25,060
Common stockholder's equity:
Additional paid-in capital 72,635 69,135 69,535
Retained earnings (deficit) 6,950 (7,362) (6,190)
Total common stockholder's equity 79,585 61,773 63,345
$548,935 $559,051 $500,677
See accompanying notes.<PAGE>
Page 3 of 17
SILGAN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands)
Three Months Ended
June 30, June 30,
1995 1994
Net sales $201,726 $200,959
Cost of goods sold 171,879 172,612
Gross profit 29,847 28,347
Selling, general and administrative expenses 7,917 9,452
Income from operations 21,930 18,895
Interest expense and other related
financing costs 9,675 8,928
Income before income taxes 12,255 9,967
Income tax provision 4,900 4,075
Net income $ 7,355 $ 5,892
See accompanying notes.<PAGE>
Page 4 of 17
SILGAN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands)
Six Months Ended
June 30, June 30,
1995 1994
Net sales $404,990 $387,203
Cost of goods sold 346,144 336,132
Gross profit 58,846 51,071
Selling, general and administrative expenses 17,315 18,051
Income from operations 41,531 33,020
Interest expense and other related
financing costs 19,091 17,297
Income before income taxes 22,440 15,723
Income tax provision 9,300 6,450
Net income $ 13,140 $ 9,273
See accompanying notes.<PAGE>
Page 5 of 17
SILGAN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
Six Months Ended
June 30, June 30,
1995 1994
Cash flows from operating activities:
Net income $ 13,140 $ 9,273
Adjustments to reconcile net income to net
cash used by operating activities:
Depreciation 15,993 18,280
Amortization 3,226 2,973
Other items 3 551
Contribution by Parent for federal income tax
provision 3,100 5,000
Changes in assets and liabilities:
(Increase) in accounts receivable (9,814) (33,182)
(Increase) in inventories (41,709) (33,907)
Increase in trade accounts payable 7,981 17,901
Other, net (2,044) 1,758
Total adjustments (23,264) (20,626)
Net cash used by operating activities (10,124) (11,353)
Cash flows from investing activities:
Capital expenditures (19,671) (9,641)
Proceeds from sale of assets 3,270 -
Net cash used in investing activities (16,401) (9,641)
Cash flows from financing activities:
Borrowings under working capital loans 181,410 183,500
Repayments under working capital loans (154,260) (150,750)
Repayment of term loans (2,454) -
Payments to former shareholders - (5,303)
Net cash provided by financing activities 24,696 27,447
Net increase (decrease) in cash and cash equivalents (1,829) 6,453
Cash and cash equivalents at beginning of year 2,665 205
Cash and cash equivalents at end of period $ 836 $ 6,658
Supplementary data:
Interest paid $16,943 $14,071
Income taxes paid 8,055 1,389
See accompanying notes.<PAGE>
Page 6 of 17
SILGAN CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Information at June 30, 1995 and 1994 and for the
three months and six months then ended is unaudited)
1. Basis of Presentation
The accompanying condensed unaudited consolidated financial statements of
Silgan Corporation ("Silgan" or the "Company") have been prepared in
accordance with Rule 10-01 of Regulation S-X and, therefore, do not
include all information and footnotes necessary for a fair presentation of
financial position, results of operations and cash flows in conformity
with generally accepted accounting principles. All adjustments of a
normal recurring nature have been made, including appropriate estimates
for reserves and provisions which are normally determined or settled at
year end. In the opinion of the Company, however, the accompanying
financial statements contain all adjustments (consisting solely of a
normal recurring nature) necessary to present fairly Silgan's financial
position as of June 30, 1995 and 1994 and December 31, 1994, the results
of operations for the three months and six months ended June 30, 1995 and
1994, and the statements of cash flows for the six months ended June 30,
1995 and 1994.
While the Company believes that the disclosures presented are adequate to
make the information not misleading, it is suggested that these financial
statements be read in conjunction with the financial statements and notes
included in Silgan's Annual Report on Form 10-K for the year ended
December 31, 1994.
Effective October 1, 1994, the Company extended the estimated useful lives
of certain fixed assets to more properly reflect the true economic lives
of such assets and to better align the Company's depreciable lives with
the predominate practice in its industry. The change had the effect of
decreasing depreciation expense for the six months ended June 30, 1995 by
$3.0 million and increasing net income by $1.8 million.
2. Inventories
Inventories consisted of the following (in thousands):
June 30, June 30, Dec. 31,
1995 1994 1994
Raw materials and supplies $ 30,430 $ 28,127 $ 40,196
Work-in-process 19,413 19,221 19,045
Finished goods 119,629 93,835 63,409
169,472 141,183 122,650
Adjustment to value inventory
at cost on the LIFO Method (5,334) 1,377 (221)
$164,138 $142,560 $122,429<PAGE>
Page 7 of 17
SILGAN CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Information at June 30, 1995 and 1994 and for the
three months and six months then ended is unaudited)
3. Subsequent Events
On August 1, 1995, pursuant to the Asset Purchase Agreement dated as of
June 2, 1995 between American National Can Company ("ANC") and Silgan
Containers Corporation, a wholly owned subsidiary of the Company
("Containers"), Containers acquired from ANC substantially all of the
fixed assets and working capital, and assumed certain specified limited
liabilities, of ANC's Food Metal and Specialty business (the "Business").
In consideration thereof, Containers paid ANC an aggregate purchase price
of $336.3 million, which included $157.7 million for the net working
capital of the Business. The acquisition will be accounted for under the
purchase method. In 1994, the Business had net sales of approximately
$597.0 million.
In conjunction with the acquisition, the Company entered into a new $675.0
million credit facility with a group of banks to (i) refinance in full all
amounts owing under both Silgan's existing credit agreement and its $50.0
million Senior Secured Floating Rate Notes, (ii) finance the acquisition
by Containers of the Business, (iii) pay dividends to Silgan Holdings Inc.
("Holdings"), the parent company of Silgan, in an amount not to exceed
$75.0 million, which dividends are to be used by Holdings to repurchase
its 13-1/4% Senior Discount Debentures, and (iv) pay fees and expenses
associated therewith. As a result of the early extinguishment of amounts
owed under its existing secured debt facilities, the Company will incur a
charge of $4.5 million.<PAGE>
Page 8 of 17
Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Three Months Ended June 30, 1995 Compared with
Three Months Ended June 30, 1994
Summary results for the Company's two business segments, metal and plastic
containers, for the three months ended June 30, 1995 and 1994 are provided
below.
June 30
1995 1994
(In millions)
Net sales:
Metal containers & other $144.5 $152.8
Plastic containers 57.2 48.1
Consolidated $201.7 $200.9
Operating profit:
Metal containers & other $ 18.0 $ 17.2
Plastic containers 3.5 1.9
Corporate 0.4 (0.2)
Consolidated $ 21.9 $ 18.9
Consolidated net sales of $201.7 million for the three months ended June
30, 1995 remained flat as compared with sales of $200.9 million for the
same period in 1994.
Net sales for the metal container business (including paper containers)
were $144.5 million for the three months ended June 30,1995, a decrease of
$8.3 million (5.4%) from net sales of $152.8 million for the same period
in 1994. As compared to the three months ended June 30, 1994, net sales of
metal cans decreased $7.9 million (5.3%) for the same three month period
in 1995 principally due to lower unit volume. Sales to Nestle Food
Company ("Nestle") declined $2.0 million (3.9%) due to lower unit volume,
while sales to Del Monte Corporation ("Del Monte") were $1.8 million
(4.4%) higher than the same period in 1994. Sales to other customers
decreased $7.7 million (13.4%) principally as a result of a delayed and
anticipated smaller vegetable pack in 1995 due to unseasonably wet and
cool weather in the Midwest during the planting season. Wet weather also
contributed to a delayed and expected smaller tomato and fruit pack in
California. Sales of paper containers included in the metal container
segment declined $0.4 million to $2.1 million during the three months
ended June 30, 1995 as compared to the same period in 1994.<PAGE>
Page 9 of 17
RESULTS OF OPERATIONS (continued)
Net sales for the plastic container business of $57.2 million during the
three months ended June 30, 1995 increased $9.1 million, or 18.9%, over
net sales of $48.1 million for the same period in 1994. This increase was
attributable to both higher average sales prices due to the pass through
of higher resin costs and increased unit sales to new and existing
customers.
Cost of goods sold as a percentage of consolidated net sales was 85.2%
($171.9 million) for the three months ended June 30, 1995, a decrease of
0.7 percentage points, as compared to 85.9% ($172.6 million) for the same
period in 1994. The decrease in cost of goods sold as a percentage of
consolidated net sales principally resulted from improved manufacturing
efficiencies, lower per unit manufacturing costs realized as a result of
higher production volumes and lower depreciation expense.
Selling, general and administrative expenses as a percentage of
consolidated net sales declined 0.8 percentage points to 3.9% ($7.9
million) for the three months ended June 30, 1995, as compared to 4.7%
($9.5 million) for the three months ended June 30, 1994. The decrease in
selling, general and administrative expenses for the three months ended
June 30, 1995 as compared to the same period in the prior year resulted
from the reversal of a corporate charge taken in the first quarter for
legal costs paid and accrued for the acquisition of ANC's Food Metal and
Specialty business (since the transaction has been consummated these costs
will be capitalized) and reduced charges for uncollectible accounts.
Income from operations as a percentage of consolidated net sales increased
1.5 percentage points to 10.9% ($21.9 million) for the three months ended
June 30, 1995, compared with 9.4% ($18.9 million) for the same period in
1994. The increase in income from operations as a percentage of
consolidated net sales was attributable to the aforementioned improvement
in gross margin and the decrease in selling, general and administrative
expenses.
Income from operations as a percentage of net sales for the metal
container business increased 1.2 percentage points to 12.5% ($18.0
million) during the second three months of 1995, as compared to 11.3%
($17.2 million) for the same period in the prior year, principally due to
lower per unit manufacturing costs realized on greater production volume,
lower depreciation expense and lower selling and administrative expenses.<PAGE>
Page 10 of 17
RESULTS OF OPERATIONS (continued)
Income from operations as a percentage of net sales attributable to the
plastic container business for the three months ended June 30, 1995 was
6.2% ($3.5 million), as compared to 3.9% ($1.9 million) for the same
period in 1994. The improved operating performance of the plastic
container business resulted from increased unit sales volume and improved
manufacturing efficiencies realized as a result of capital investment.
Interest expense increased by approximately $0.8 million to $9.7 million
for the three months ended June 30, 1995. The increase resulted from
higher average borrowing rates offset, in part, by lower average
outstanding borrowings.
The provisions for income taxes for the three months ended June 30, 1995
and 1994 provide for federal, state and foreign taxes as if the Company
were a separate taxpayer in accordance with Statement of Financial
Accounting Standards No. 109, "Accounting for Income Taxes".
As a result of the items discussed above, the net income for the three
months ended June 30, 1995 was $7.4 million, $1.5 million greater than the
net income for the three months ended June 30, 1994 of $5.9 million.
Six Months Ended June 30, 1995 Compared with
Six Months Ended June 30, 1994
Summary results for the Company's two business segments, metal and plastic
containers, for the six months ended June 30, 1995 and 1994 are provided
below.
June 30
1995 1994
(In millions)
Net sales:
Metal containers & other $289.2 $289.1
Plastic containers 115.8 98.1
Consolidated $405.0 $387.2
Operating profit:
Metal containers & other $ 34.0 $ 29.4
Plastic containers 7.7 3.9
Corporate (0.2) (0.3)
Consolidated $ 41.5 $ 33.0<PAGE>
Page 11 of 17
RESULTS OF OPERATIONS (continued)
Consolidated net sales increased $17.8 million, or 4.6%, to $405.0 million
for the six months ended June 30, 1995, as compared to $387.2 million for
the same period in 1994. This increase resulted from the generation of
greater sales by the plastic container business, along with additional
sales realized by the metal container business because of its longer
reporting period. For interim reporting purposes, the accounting period
for the metal container business ends on the last Friday of the applicable
month. As a result, the operating results for the first six months of
1995 for the metal container business include activity for six more days
than for the same period in 1994, which had the effect of increasing both
sales and income for this segment.
Net sales for the metal container business (including paper containers) of
$289.2 million for the six months ended June 30, 1995 were flat with net
sales of $289.1 million for the same period in 1994. As compared to the
first six months of the prior year, net sales of metal cans increased $1.3
million (0.5%) for the first six months of 1995 due to slightly greater
unit volume. Sales to Nestle increased $6.5 million (6.4%) principally
due to an increase in unit sales of pet food containers. Additionally,
higher unit sales to Del Monte resulted in a $6.5 million (8.5%) increase
in sales over the same period in 1994. Sales to other customers declined
$11.6 million (11.0%) principally as a result of the delayed and
anticipated smaller Midwest vegetable pack in 1995. Wet weather also
contributed to a delayed and expected smaller tomato and fruit pack in
California. Sales of paper containers included in the metal container
segment declined $1.3 million to $4.1 million during 1995.
Net sales for the plastic container business of $115.8 million during the
six months ended June 30, 1995 increased $17.7 million, or 18.1%, over net
sales of $98.1 million for the same period in 1994. This increase was
attributable to both higher average sales prices due to the pass through
of higher resin costs and increased unit sales to new and existing
customers.
Cost of goods sold as a percentage of consolidated net sales improved 1.3
percentage points to 85.5% ($346.1 million) for the six months ended June
30, 1995, as compared to 86.8% ($336.1 million) for the same period in
1994. The decrease in cost of goods sold as a percentage of consolidated
net sales principally resulted from lower per unit manufacturing costs
realized on higher production volumes, improved manufacturing efficiencies
resulting from capital investment and plant rationalizations and lower
depreciation expense.<PAGE>
Page 12 of 17
RESULTS OF OPERATIONS (continued)
Selling, general and administrative expenses as a percentage of
consolidated net sales were 4.3% ($17.3 million) for the six months ended
June 30, 1995, as compared to 4.7% ($18.1 million) for the six months
ended June 30, 1994. The decrease in selling, general and administrative
expenses as a percentage of consolidated net sales for the first six
months of 1995 as compared to the same period in the prior year resulted
from relatively flat period to period expense on greater sales volume.
Income from operations as a percentage of consolidated net sales increased
1.8 percentage points to 10.3% ($41.5 million) for the six months ended
June 30, 1995, compared with 8.5% ($33.0 million) for the same period in
1994. The increase in income from operations as a percentage of
consolidated net sales was attributable to the aforementioned improvement
in gross margin and the decrease in selling, general and administrative
expenses.
Income from operations as a percentage of net sales for the metal
container business increased 1.5 percentage points to 11.7% ($34.0
million) during the first six months of 1995, as compared to 10.2% ($29.4
million) for the same period in the prior year, principally due to lower
per unit manufacturing costs realized on greater unit production volume,
improved manufacturing efficiencies and lower depreciation expense.
Income from operations as a percentage of net sales attributable to the
plastic container business for the six months ended June 30, 1995 was 6.7%
($7.7 million), as compared to 4.0% ($3.9 million) for the same period in
1994. The improved operating performance of the plastic container
business resulted from increased unit sales volume and improved
manufacturing efficiencies realized as a result of capital investment.
Interest expense increased by approximately $1.8 million to $19.1 million
for the six months ended June 30, 1995 as a result of higher average
borrowing rates offset, in part, by lower average outstanding borrowings.
The provisions for income taxes for the six months ended June 30, 1995 and
1994 provide for federal, state and foreign taxes as if the Company were a
separate taxpayer in accordance with Statement of Financial Accounting
Standards No. 109, "Accounting for Income Taxes".
As a result of the items discussed above, net income for the six months
ended June 30, 1995 was $13.1 million, $3.8 million greater than net
income for the six months ended June 30, 1994 of $9.3 million.<PAGE>
Page 13 of 17
CAPITAL RESOURCES AND LIQUIDITY
The Company's liquidity requirements arise primarily from its obligations
under the indebtedness incurred in connection with its acquisitions and
the refinancing of such indebtedness, capital investment in new and
existing equipment and the funding of the Company's seasonal working
capital needs. Historically, the Company has met these liquidity
requirements through cash flow generated from operating activities and
working capital borrowings.
For the first six months of 1995, the net borrowing of $27.2 million of
working capital loans, proceeds of $3.3 million realized from the sale of
assets and outstanding cash balances of $1.8 million were used to fund the
seasonal increase in operating activities of $10.1 million, capital
expenditures of $19.7 million and to repay $2.5 million of term loans.
The Company's earnings before depreciation, interest, taxes and
amortization for the six months ended June 30, 1995 increased by $6.9
million, or 13.2%, over the same period in the prior year to $59.3
million. At June 30, 1995, the Company had higher finished goods
inventories than at June 30, 1994 principally due to the delayed vegetable
pack. The Company anticipates that its finished goods level (without
regard to the inventory acquired from ANC) will decline to prior year
levels by October, the end of the pack season.
On August 1, 1995, Silgan, Containers and Silgan Plastics Corporation, a
wholly owned subsidiary of the Company, entered into a $675 million credit
facility pursuant to a new credit agreement (the "Credit Agreement") with
various banks to finance the acquisition by Containers of ANC's Food Metal
and Specialty business, to refinance and repay in full all amounts owing
under their existing credit agreement and Silgan's $50 million Senior
Secured Floating Rate Notes due 1997 (the "Secured Notes") and to pay
dividends to Holdings in amount not to exceed $75 million for the
repurchase of Holdings' 13-1/4% Senior Discount Debenture due 2002 (the
"13-1/4% Debentures"). In conjunction therewith, on such date the Banks
loaned the Company $175.0 million of A term loans, $225.0 million of B term
loans and $112.8 million of working capital loans. With these proceeds,
the Company (i) repaid $117.1 million of term loans and $37.0 million of
working capital loans under its previous credit agreement, (ii) acquired
from ANC substantially all of the fixed assets and working capital of its
Food Metal and Specialty business for $336.3 million, which included $157.7
million for the net working capital of the business and, (iii) paid fees
and expenses of $17.9 million. On or prior to August 31, 1995, the Banks
have committed to lend an additional $50.0 million of A term loans to fund
the prepayment by Silgan in full of its Secured Notes. The final maturity
for the A term loans and working capital loans under the Credit Agreement
is December 31, 2000, and for B term loans under the Credit Agreement is
March 15, 2002.<PAGE>
Page 14 of 17
CAPITAL RESOURCES AND LIQUIDITY (continued)
In addition, the Credit Agreement permits Silgan to pay dividends to
Holdings at any time prior to June 30, 1996 in an amount not to exceed
$75.0 million for Holdings to use to repurchase its 13-1/4% Debentures.
Silgan will fund such dividends to Holdings through borrowings of working
capital loans under the Credit Agreement. The commitment under the Credit
Agreement for working capital loans is initially $150.0 million, increasing
at the time and by the amount of any such dividends paid by Silgan (up to a
maximum commitment of $225.0 million).
Because the Company sells metal containers used in vegetable and fruit
processing, its sales are seasonal. As is common in the packaging
industry, the Company must access working capital to build inventory and
then carry accounts receivable for some customers beyond the end of the
summer and fall packing season. Seasonal accounts are generally settled by
year end. The acquisition of ANC's Food Metal and Specialty business
increased the Company's seasonal metal containers business and as a result
the Company increased the amount of working capital loans available to it
under its credit facility to $225.0 million ($150.0 million initially and
increasing to a maximum of $225.0 million as discussed above). On August
1, 1995 the outstanding principal amount of working capital loans was
$112.8 million. Because the Company purchased ANC's Food Metal and
Specialty business during its seasonal peak, it does not expect to incur
much additional short term indebtedness during 1995 to finance its working
capital requirements.
The Credit Agreement provides the Company with improved financial
flexibility by (i) enabling Silgan to transfer funds to Holdings for
payment by Holdings of cash interest on the 13-1/4% Debentures, (ii)
extending the maturity of the Company's secured debt facilities by repaying
amounts outstanding under the existing credit agreement and the Secured
Notes, (iii) lowering the interest rate spread on its floating rate
borrowings by 1/2%, as well as providing for further interest rate
reductions in the event the Company attains certain financial targets, and
(iv) lowering Holdings consolidated average cost of indebtedness by
permitting Silgan to dividend up to $75.0 million to Holdings with
borrowings under the Credit Agreement, which amounts are to be used by
Holdings to repurchase 13-1/4% Debentures.
Giving effect to both the acquisition of ANC's Food Metal and Specialty
business and the Credit Agreement, and in addition to its operating needs,
the Company's cash requirements over the next several years consist
primarily of (i) annual capital expenditures of $50.0 to $60.0 million,
(ii) principal amortization payments of term loans under the Credit
Agreement of $7.3 million, $27.3 million, $37.3 million, $52.3 million and
$52.3 million over the next five years, respectively, (iii) the Company's<PAGE>
Page 15 of 17
CAPITAL RESOURCES AND LIQUIDITY (continued)
interest requirements (including interest on working capital loans, the
principal amount which will vary depending upon seasonal requirements, and
the term loans, all of which bear fluctuating rates of interest, and the
11-3/4% Notes), (iv) dividends to Holdings to fund semi-annual cash
interest payments of up to $18.2 million (depending upon the actual amount
of 13-1/4% Debentures repurchased by Holdings) on the 13-1/4% Debentures
commencing in December 1996, and (v) payments of approximately $18.0
million for federal and state tax liabilities beginning in 1996 (assuming
the redemption of the 13-1/4% Debentures at maturity) and increasing
annually thereafter by approximately $5.0 million.
Management believes that cash generated by operations and funds from
working capital borrowings under the Credit Agreement will be sufficient to
meet the Company's expected operating needs, planned capital expenditures
and debt service requirements for the foreseeable future.<PAGE>
Page 16 of 17
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit Number Description
27 Financial Data Schedule.
(b) Reports on Form 8-K
On June 9, 1995, Silgan Corporation filed a Current Report on Form 8-K
pertaining to Asset Purchase Agreement dated as of June 2, 1995 entered
into by American National Can Company and Silgan Containers Corporation
for the purchase by Silgan Containers Corporation of the assets of
American National Can Company's Food Metal and Specialty business.<PAGE>
Page 17 of 17
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Quarterly Report to be signed on its
behalf by the undersigned thereunto duly authorized.
SILGAN CORPORATION
Dated: August 14, 1995 /s/Harley Rankin, Jr.
Harley Rankin, Jr.
Executive Vice President, Chief
Financial Officer and Treasurer
(Principal Financial Officer)
Dated: August 14, 1995 /s/Harold J. Rodriguez, Jr.
Harold J. Rodriguez, Jr.
Vice President and Controller
(Chief Accounting Officer)<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Silgan
Corporation's Form 10-Q for the quarter ended June 30, 1995 and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 836
<SECURITIES> 0
<RECEIVABLES> 74,926
<ALLOWANCES> 0
<INVENTORY> 164,138
<CURRENT-ASSETS> 246,023
<PP&E> 438,547
<DEPRECIATION> 183,094
<TOTAL-ASSETS> 548,935
<CURRENT-LIABILITIES> 148,526
<BONDS> 282,568
<COMMON> 0
0
0
<OTHER-SE> 79,585
<TOTAL-LIABILITY-AND-EQUITY> 548,935
<SALES> 404,990
<TOTAL-REVENUES> 404,990
<CGS> 346,144
<TOTAL-COSTS> 346,144
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 19,091
<INCOME-PRETAX> 22,440
<INCOME-TAX> 9,300
<INCOME-CONTINUING> 13,140
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 13,140
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
