SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) February 18, 1994
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Scotsman Industries, Inc.
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(Exact name of registrant as specified in its charter)
Delaware
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(State or other jurisdiction of incorporation)
0-10182 36-3635892
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(Commission File Number) (IRS Employer Identification No.)
775 Corporate Woods Parkway
Vernon Hills, Illinois 60061
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (708) 215-4500
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Exhibit Index is located on page 4.
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Item 5. Other Events
The information contained in the registrant's February 18,
1994 press release, reporting on the registrant's earnings for the
fourth quarter of 1993 and for its 1993 fiscal year, a copy of which
is filed herewith as Exhibit 99, is incorporated herein by reference.
Item 7. Financial Statements and Exhibits
(c) Exhibits:
Exhibit 99 February 18, 1994 Press Release
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
Scotsman Industries, Inc.
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Registrant
Dated: February 25, 1994 By: /s/ Donald D. Holmes
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Donald D. Holmes
Vice President-Finance
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EXHIBIT INDEX
Number Description Page Number
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Exhibit 99 February 18, 1994 Press Release 5
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EXHIBIT 99
775 Corporate Woods Parkway
Vernon Hills, Illinois 60061-3112
(708) 215-4500
Fax (708) 634-8823
SCOTSMAN
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INDUSTRIES
Contact: Don Holmes, CFO
708-215-4600
SCOTSMAN INDUSTRIES REPORTS STRONG EARNINGS GAIN IN 1993;
NET INCOME UP 16 PERCENT -- EARNINGS PER SHARE $1.06
Vernon Hills, IL, February 18, 1994 -- Scotsman Industries, Inc.
(NYSE: SCT) today reported 1993 net income of $7.4 million, a record
$1.06 per share, up 16 percent from 1992 earnings, on sales of $164.0
million. The results compare to 1992 net income of $6.4 million, or
$.90 per share, on sales of $168.7 million.
For the fourth quarter of 1993, Scotsman reported net income of
$209,000, or $.03 per share, on sales of $32.1 million. For the same
quarter in 1992, the company lost $97,000, or $.01 per share, on sales
of $32.2 million. The fourth quarter is traditionally a down quarter
for Scotsman, primarily due to the seasonality of the company's ice
machine businesses.
Richard C. Osborne, Scotsman chairman, president and chief
executive officer, said, "1993 results reflect the initial benefits
from several recent strategic actions, including our acquisitions of
Crystal Tips and Simag, our exclusive marketing agreement for
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the Howe flaker product line, and the restructuring of European
operations during the year. We are pleased to report record earnings
per share despite the deep recession in Western European markets and
the effects of a substantial devaluation of the Italian lira."
He noted that full year sales of $164 million were impacted
approximately $12 million when compared to 1992 due to translation of
the sales of the Company's Italian businesses at weaker lira rates.
Fiscal year 1993 sales of continuing businesses (excluding the 1992
sales of the Glenco-Star operation which was divested in September,
1992), using constant foreign exchange rates, were up 12 percent
compared to 1992.
Worldwide ice machine sales for the year increased 6 percent, and
excluding changes in foreign exchange rates, were up 14 percent over
the prior year. Domestic ice machine sales increased strongly as a
result of the improving domestic market, the January, 1993 addition of
the Howe flaker product line and the full year effect of sales of the
products of Crystal Tips, which was acquired in April, 1992. Although
Western European markets remain very weak, the Company's European
operations posted increased sales, largely due to sales of the
products of Simag, the Italian ice machine
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business acquired in January, 1993, and, to a lesser extent, from
continuing growth in exports to the Far East. Sales of soft drink
dispensing equipment were equal to the record 1992 level.
Operating profit margins increased significantly from the prior
year, reflecting ongoing cost reduction efforts and partial year
benefits from the restructuring of European operations. Reduced
interest expense, the result of lower average debt levels and
favorable rates, also contributed to the increase in net income.
Osborne continued, "The recently announced acquisitions of The
Delfield Company and Whitlenge Drink Equipment, Limited are scheduled
to be completed early in the second quarter of 1994. These two
companies provide an excellent fit with Scotsman's core businesses.
The two combined had in excess of $100 million in sales in 1993, and
we believe both have solid growth potential."
"We also expect to realize additional benefits from the previous
acquisitions we have made, including overhead cost reductions from the
consolidation of the Crystal Tips and Booth, Inc. operations,
scheduled to be completed in the first half of
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1994. Additionally, we believe we are extremely well positioned for
and expect to gain from a Western European market rebound when that
begins to materialize. We are excited about our opportunities for the
future and the potential for increased value we can bring to our
customers, shareholders and employees," Osborne concluded.
Scotsman Industries, Inc. is a leading manufacturer of
refrigeration products primarily serving the food service,
hospitality, beverage, bakery and health care industries, with a
secondary focus on luxury appliances for the consumer market.
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Scotsman Industries, Inc.
Condensed Statement of Income (Unaudited)
(Dollars in thousands, except per share data)
FOR THE THREE MONTHS ENDED
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Jan. 2, % of Jan. 3, % of
1994 Sales 1993 Sales
-------- ----- -------- -----
Net sales $32,123 $32,206
Cost of sales 23,168 24,332
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Gross profit 8,955 28% 7,874 24%
Selling and
administrative
expenses 7,569 6,900
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Income from
operations 1,386 4% 974 3%
Interest expense,
net 907 1,019
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Income (loss)
before income
taxes 479 1% (45) 0%
Income taxes 270 52
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Net income (loss) $ 209 1% $ (97) 0%
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Net income (loss)
per share(i) $ 0.03 $ (0.01)
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(i) The calculation of net income per share was based on 7,006,668
weighted average shares of the Company's common stock for the
three months ended January 2, 1994, and on 7,066,294 shares for
the three months ended January 3, 1993. The net income per share
calculation does not reflect the dilutive effect of stock options
outstanding as the dilutive effect is immaterial.
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Scotsman Industries, Inc.
Condensed Statement of Income (Audited)
(Dollars in thousands, except per share data)
FOR THE TWELVE MONTHS ENDED
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Jan. 2, % of Jan. 3, % of
1994 Sales 1993 Sales
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Net sales $163,952 $168,674
Cost of sales 114,472 122,226
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Gross profit 49,480 30% 46,448 28%
Selling and
administrative
expenses 31,874 31,588
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Income from
operations 17,606 11% 14,860 9%
Interest expense,
net 4,235 4,675
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Income before
income taxes 13,371 8% 10,185 6%
Income taxes(i) 5,989 3,793
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Net income before
cumulative effect
of accounting
changes $ 7,382 5% $ 6,392 4%
Cumulative effect
of accounting
changes(ii) 29 -
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Net income $ 7,411 5% $ 6,392 4%
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Income per Share:
Income before
cumulative effect
of accounting
changes $ 1.06 $ 0.90
Cumulative effect
of accounting
changes - -
-------- --------
Net income
per share (iii) $ 1.06 $ 0.90
======== =========
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(i) The effective income tax rate increased from 37% to 45% for the
fiscal year ended January 2, 1994 compared to the prior year.
This was due primarily to the implementation of a change in
accounting for income taxes in the first quarter of 1993.
Certain tax credits realized in the fiscal year ended January 3,
1993 arising from a prior reorganization of an Italian subsidiary
are now recognized as part of the one-time cumulative adjustment
to deferred taxes (see note ii) and are recorded separately as
such in the income statement for the fiscal year ended January 2,
1994.
(ii) Changes in accounting principles related to post-retirement
health care, post-employment expenses and income taxes were
implemented in the first quarter of 1993. The cumulative effect
of these accounting changes was as follows:
Unfavorable cumulative effect of accounting change due
to post-retirement health care benefits (in thousands)
of $(1,660) pre-tax and $(1,029) after-tax.
Unfavorable cumulative effect of accounting change due
to other post-employment benefits (in thousands) of
$(508) pre-tax and $(243) after-tax.
Favorable cumulative effect of accounting change
relating to income taxes (in thousands) of $1,301.
(iii) The calculation of net income per share was based on
7,000,651 weighted average shares of the Company's common
stock for the fiscal year ended January 2, 1994 and on
7,096,976 shares for the fiscal year ended January 3, 1993.
The net income per share calculation does not reflect the
dilutive effect of stock options outstanding as the dilutive
effect is immaterial. <PAGE>
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