FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended June 24, 1995
Commission file number 1-2936
SCHWERMAN TRUCKING CO.
(Exact name of registrant as specified in its charter)
Wisconsin 39-076739739
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
P. O. Box 1601, 611 South 28 Street, Milwaukee, WI 53201
(Address of principal executive offices) (Zip Code)
414/671-1600
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes [X] No [ ].
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Outstanding at
Class July 31, 1995
----- --------------
Common, $1 par value: 422,089
<PAGE>
SCHWERMAN TRUCKING CO. AND SUBSIDIARIES
INDEX
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Page No.
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PART I. Financial Information:
Consolidated Condensed Balance Sheet at
June 24, 1995 and March 25, 1995 3
Consolidated Condensed Statements of Income for the
three months ended June 24, 1995 and June 25, 1994 4
Consolidated Condensed Statements of Cash Flows
for the three months ended June 24, 1995
and June 25, 1994 5
Notes to Consolidated Condensed Financial Statements 6
Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
PART II. Other Information 8
<PAGE>
<TABLE>
SCHWERMAN TRUCKING CO. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
<CAPTION>
JUNE 24, MARCH 25,
1995 1995
---------- -----------
(Unaudited)
<S> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents $ 184,555 $ 87,702
Accounts receivable (less allowances for
losses of $40,000) 5,266,985 4,133,229
Other accounts and notes receivable 1,110,010 1,262,769
Operating supplies and parts 1,010,678 1,042,136
Tires in service 797,853 745,540
Prepaid expenses 483,046 615,367
Other current assets 215,805 218,319
----------- -----------
9,068,932 8,105,062
Property, plant and equipment at cost 52,809,821 48,899,216
Less accumulated depreciation and amort. (32,549,186) (31,839,996)
----------- -----------
20,260,635 17,059,220
Receivable from parent and affiliates 1,468,070 1,248,363
Other non-current assets 1,248,913 1,145,008
----------- -----------
$32,046,550 $27,557,653
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C> <C>
Current Liabilities:
Current portion of long-term debt $ 3,009,871 $ 2,226,147
Accounts payable 2,033,764 2,291,342
Accrued liabilities 3,876,996 3,499,759
Income taxes payable 206,107 84,128
Deferred income taxes- current 367,659 367,659
----------- -----------
9,494,397 8,469,035
Long-term debt 12,224,248 9,485,233
Deferred income taxes 1,342,596 1,174,596
Other non-current liabilities 1,124,518 1,089,518
Stockholders' Equity
Preferred stock 1,497,470 1,497,470
Common stock 422,089 422,089
Additional paid-in capital 232,792 232,792
Retained earnings 5,708,440 5,186,920
----------- -----------
7,860,791 7,339,271
----------- -----------
$32,046,550 $27,557,653
=========== ===========
<FN>
The accompanying notes are an integral part of the
condensed consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
SCHWERMAN TRUCKING CO. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(UNAUDITED)
<CAPTION>
------Three Months Ended-----
June 24, June 25,
1995 1994
----------- -----------
<S> <C> <C>
Revenues
Operating revenues $15,295,427 $15,488,916
Equipment and other rentals 216,801 169,625
Other 590,031 597,675
----------- -----------
16,102,259 16,256,216
Operating Expenses
Salaries, wages and fringe
benefits 7,196,810 6,886,995
Fuel and fuel taxes 1,556,073 1,545,122
Parts, repairs and tires 953,684 952,200
Insurance and workers'
compensation 1,121,117 1,279,938
Depreciation and amortization 888,920 759,070
Purchased transportation 1,339,206 1,562,132
Rent expense 302,594 378,560
Other operating expenses 1,525,998 1,441,283
(Gain) on disposal of property,
plant and equipment, net (23,602) (145,548)
----------- -----------
14,860,800 14,659,752
----------- -----------
Operating income 1,241,459 1,596,464
Interest expense, net 357,733 294,124
----------- -----------
Income before taxes 883,726 1,302,340
Federal and state income taxes 336,000 521,000
----------- -----------
Net income 547,726 781,340
Dividends on preferred shares (26,206) (26,206)
----------- -----------
Net income applicable common
shares $ 521,520 $ 755,134
=========== ===========
Weighted Average Number of Common
Shares Outstanding 422,089 422,089
=========== ===========
Net Income Per Common Share $ 1.24 $ 1.79
=========== ===========
<FN>
The accompanying notes are an integral part of the
condensed consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
SCHWERMAN TRUCKING CO. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<CAPTION>
----Three Months Ended---
June 24, June 25,
1995 1994
----------- -----------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 547,726 $ 781,340
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation and amortization 888,920 759,070
Provision for deferred income taxes 168,000 260,500
(Gain) loss on disposal of
property, plant and equipment (23,602) (145,548)
Change in assets and liabilities:
Accounts and notes receivable (980,997) (1,680,731)
Operating supplies and parts 31,458 (10,342)
Tires in service, prepaid expenses
and other current assets 82,522 242,893
Receivable from parent and affiliates (219,707) 48,697
Other noncurrent assets (103,905) 60,454
Accounts payable (257,578) 70,445
Accrued liabilities 377,237 270,308
Income taxes payable 121,979 118,416
Other noncurrent liabilities 35,000 (5,200)
----------- -----------
Net cash provided by (used in)
operating activities 667,053 770,302
Cash flows from investing activities:
Proceeds from sale of property, plant
and equipment 46,600 233,027
Payments for property, plant and equipment (510,514) (203,081)
----------- -----------
Net cash provided by (used in)
investing activities (463,914) 29,946
Cash flows from financing activities:
Proceeds from long-term debt 927,953 925,801
Payments of long-term debt (1,008,033) (1,692,971)
Redemption of preferred stock -- (12,477)
Preferred stock dividends (26,206) (26,206)
----------- -----------
Net cash provided by (used in)
financing activities (106,286) (805,853)
----------- -----------
Increase(decrease) in cash and equivalents 96,853 (5,605)
Cash and cash equivalents:
Beginning of year 87,702 92,151
----------- -----------
End of quarter $ 184,555 $ 86,546
=========== ===========
Cash paid during the year for:
Interest $ 327,213 $ 272,288
Income taxes $ 46,021 $ 142,084
<FN>
The accompanying notes are an integral part of the
condensed consolidated financial statements.
</TABLE>
<PAGE>
SCHWERMAN TRUCKING CO. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
1. CONDENSED FINANCIAL STATEMENTS
In the opinion of management, the accompanying unaudited
consolidated condensed financial statements contain all
adjustments (consisting of only normal recurring accruals)
necessary to present fairly the consolidated financial position
of Schwerman Trucking Co. and Subsidiaries as of June 24, 1995
and March 25, 1995, and the consolidated statements of income
for the three months ended June 24, 1995 and June 25, 1994 and
consolidated statements of cash flows for the three months then
ended.
The results of operations for the three months ended June 24,
1995 and June 25, 1994 are not necessarily indicative of the
results to be expected for a full year.
Certain information and financial statement disclosures normally
included in financial statements prepared in accordance with
Generally Accepted Accounting Principles have been condensed or
omitted pursuant to S.E.C. rules and regulations. The Company
believes that the disclosures made are adequate to make the
information not misleading. These financial statements should
be read in conjunction with the financial statements and notes
thereto included in the Company's Form 10-K for the year
ended March 25, 1995.
2. STATEMENT OF CASH FLOWS
The Company had non-cash property, plant and equipment additions
totaling $3,602,819 and $4,907,075 for the three months ended
June 24, 1995 and June 25, 1994, respectively, which were
financed through capital leases and equipment obligations.
<PAGE>
Management's Discussion and Analysis of Financial Condition
and Results of Operations
RESULTS OF OPERATIONS
Revenues for the three months ended June 24, 1995 were approximately
$154,000 or 1.0% lower than the comparable three-month period of fiscal
1995. The decrease in revenue is due to a 2.7% decrease in the number
of loads hauled this quarter compared to last year's first quarter and a
1.9% decrease in miles for the quarter. These decreases in volume were
offset in part by modest rate increases instituted by the Company.
The Company's customers are shippers of dry and liquid commodities.
During fiscal 1995, 65% of the Company's shipments were dry cement and,
consequently, the Company's business is very seasonal. Dry and liquid
chemicals, fertilizers and food products account for a large portion of
the remaining commodities.
Operating expenses increased by approximately $201,000 or 1.4% in the
current quarter compared to the same period of fiscal 1995. The
increase in operating expenses is result of: (1) the increase in
depreciation expense as a result of acquiring 56 new tractors in April
1995; (2) the increase in other operating expenses resulting from higher
license and registration costs due to a larger fleet of company
tractors; and (3) a $24,000 gain in the current quarter on disposal of
property, plant and equipment versus a $146,000 gain in the comparable
quarter of fiscal 1995. In addition, the reduction in the number of
loads hauled by owner operators in the current year resulted in a
decrease in purchased transportation expense and an increase in
salaries, wages, and fringe benefits expense and fuel and fuel taxes
expense.
FINANCIAL CONDITION
Total notes payable and long-term debt was $15,243,000 and $11,711,000
at June 24, 1995 and March 25, 1995, respectively. The $3,532,000
increase in debt is primarily the result of a $3,603,000 increase in
capital leases and equipment obligations for the purchase of new
equipment. The $1,008,000 reduction in debt due to the Company making
its scheduled debt payments was largely offset by the $928,000 of
proceeds from additional long-term debt.
CASH FLOWS
The Company had a net increase in cash of $97,000 for the three months
ended June 24, 1995 versus a $6,000 decrease in cash for the three
months ended June 25 1994. The Company has paid $26,000 in preferred
stock dividends for the three months ended June 24, 1995, and has
deposited $40,000 into the preferred stock sinking fund.
<PAGE>
PART II - OTHER INFORMATION
Item 3. Defaults Upon Senior Securities
None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits - None
(b) Reports on Form 8-K - None
Pursuant to the requirements of the Securities Exchange
Act of 1934, the Company has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
SCHWERMAN TRUCKING CO.
Registrant
August 3, 1995 BY: Jack F. Schwerman
Date Jack F. Schwerman
Chairman of the Board,
President and Treasurer
