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 September 23, 1995
Commission file number 1-2936
SCHWERMAN TRUCKING CO.
(Exact name of registrant as specified in its charter)
Wisconsin 39-0767397
------------------------------- -------------------
(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
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(Address of principal executive offices) (Zip Code)
414/671-1600
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(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 .
--- ---
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 October 31, 1995
----- ----------------
Common, $1 par value 422,089
<PAGE>
SCHWERMAN TRUCKING CO. AND SUBSIDIARIES
INDEX
Page No.
PART I. Financial Information:
Consolidated Condensed Balance Sheet at
September 23, 1995 and March 25, 1995 3
Consolidated Condensed Statements of Income
for the three months and six months ended
September 23, 1995 and September 24, 1994 4
Consolidated Condensed Statements of Cash Flows
for the six months ended September 23, 1995
and September 24, 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>
SEPTEMBER 23, MARCH 25,
ASSETS 1995 1995
------------- ---------
(Unaudited)
<S> <C> <C>
Current Assets:
Cash and cash equivalents $ 271,436 $ 87,702
Accounts receivable (less allowances of
$40,000) 5,480,259 4,133,229
Other accounts and notes receivable 1,109,744 1,262,769
Operating supplies and parts 1,098,032 1,042,136
Tires in service 830,173 745,540
Prepaid expenses 524,283 615,367
Other current assets 211,719 218,319
---------- ----------
9,525,646 8,105,062
---------- ----------
Property, plant and equipment at cost 54,052,409 48,899,216
Less accumulated depreciation and amortization (33,334,679) (31,839,996)
---------- ----------
20,717,730 17,059,220
---------- ----------
Receivable from parent and affiliates 1,363,876 1,248,363
Other non-current assets 1,331,036 1,145,008
----------- -----------
$32,938,288 $27,557,653
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C> <C>
Current Liabilities:
Current portion of long-term debt $ 3,092,831 $ 2,226,147
Accounts payable 2,182,317 2,291,342
Accrued liabilities 3,652,714 3,499,759
Income taxes payable 397,108 84,128
Deferred income taxes - current 367,659 367,659
---------- ----------
9,692,629 8,469,035
---------- ----------
Long-term debt 11,904,510 9,485,233
Deferred income taxes 1,582,596 1,174,596
Other non-current liabilities 1,139,457 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 6,466,745 5,186,920
----------- -----------
8,619,096 7,339,271
----------- -----------
$32,938,288 $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-- --Six Months Ended---
Sept. 23, Sept. 24, Sept. 25, Sept. 24,
1995 1994 1995 1994
---------- --------- --------- ---------
<S> <C> <C> <C> <C>
Revenues
Operating revenues $15,840,452 $16,191,475 $31,135,879 $31,680,391
Equipment & other rentals 205,987 238,972 422,788 408,597
Other 583,836 614,259 1,173,867 1,211,934
---------- ---------- ---------- ----------
16,630,275 17,044,706 32,732,534 33,300,922
---------- ---------- ---------- ----------
Operating Expenses
Salaries, wages & fringe
benefits 7,391,259 7,231,477 14,588,069 14,118,472
Fuel and fuel taxes 1,519,527 1,567,597 3,075,600 3,112,719
Parts, repairs and tires 1,013,604 985,345 1,967,288 1,937,545
Insurance and workers'
compensation 1,051,844 1,261,586 2,172,961 2,541,524
Depreciation and amort. 913,969 798,103 1,802,889 1,557,173
Purchased transportation 1,400,614 1,478,322 2,739,820 3,040,454
Rent expense 286,667 352,891 589,261 731,451
Other operating expenses 1,474,420 1,460,091 3,000,418 2,901,374
(Gain) loss on disposal
of property, plant and
equipment, net (3,150) (194,025) (26,752) (339,573)
---------- ---------- ---------- ----------
15,048,754 14,941,387 29,909,554 29,601,139
---------- ---------- ---------- ----------
Operating income 1,581,521 2,103,319 2,822,980 3,699,783
Interest expense, net 317,010 274,479 674,743 568,603
---------- --------- --------- ---------
Income before income taxes &
extraordinary item 1,264,511 1,828,840 2,148,237 3,131,180
Federal & state income taxes 480,000 731,000 816,000 1,252,000
---------- --------- --------- ---------
Inc before Xtraordinary item 784,511 1,097,840 1,332,237 1,879,180
Extraordinary item-write off
of operating rights, net -- 367,034 -- 367,034
---------- --------- --------- ---------
Net Income 784,511 730,806 1,332,237 1,512,146
Dividends on preferred shrs (26,206) (26,206) (52,412) (52,412)
----------- ----------- ----------- ----------
Net income applicable common
shares $ 758,305 $ 704,600 $ 1,279,825 $1,459,734
=========== =========== =========== ==========
Weighted Average Number of
Common Shares Outstanding 422,089 422,089 422,089 422,089
=========== =========== =========== ==========
Net Income Per Common Share $ 1.79 $ 1.67 $ 3.03 $ 3.46
=========== =========== =========== ==========
<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>
--Six Months Ended---
Sept. 23, Sept. 24,
--------- ---------
<S> <C> <C>
1995 1994
Cash flows from operating activities:
Net income (loss) $ 1,332,237 $ 1,512,146
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation and amortization 1,802,889 2,169,207
Provision for deferred income taxes 408,000 626,000
(Gain) loss on disposal of
property, plant and equipment (26,752) (339,573)
Change in assets and liabilities:
Accounts and notes receivable (1,194,005) (1,780,924)
Operating supplies and parts (55,896) (87,716)
Tires in service, prepaid expenses
and other current assets 13,051 53,367
Receivable from parent and affiliates (115,513) (350,626)
Other noncurrent assets (186,028) 46,091
Accounts payable (109,025) 21,817
Accrued liabilities 152,955 603,396
Income taxes payable 312,980 (92,609)
Other noncurrent liabilities 49,939 (5,200)
--------- ---------
Net cash provided by (used in)
operating activities 2,384,832 2,375,376
--------- ---------
Cash flows from investing activities:
Proceeds from sale of property,
plant and equipment 65,120 458,021
Payments for property, plant and equipment (1,896,948) (528,719)
--------- ---------
Net cash provided by (used in)
investing activities (1,831,828) (70,698)
--------- --------
Cash flows from financing activities:
Proceeds from long-term debt 1,676,544 788,000
Payments of long-term debt (1,993,402) (2,517,632)
Redemption of preferred stock -- (12,477)
Preferred stock dividends (52,412) (393,087)
--------- ---------
(369,270) (2,135,196)
--------- ---------
Increase in cash and cash equivalents 183,734 169,482
Cash and cash equivalents:
Beginning of year 87,702 92,151
----------- -----------
End of quarter $ 271,436 $ 261,633
=========== ===========
Cash paid during the year for:
Interest $ 649,818 $ 563,568
Income taxes $ 95,020 $ 473,609
<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 September 23, 1995 and March 25, 1995, and the
consolidated results of operations for the three months and six months
ended September 23, 1995 and September 24, 1994 and changes in financial
position for the six months then ended.
The results of operations for the three months and six months ended
September 23, 1995 and September 24, 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 FLOW
The Company had non-cash property, plant and equipment additions
totaling $3,602,819 and $5,482,546 for the six months ended September
23, 1995 and September 24, 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 September 23, 1995 were approximately
$414,000 or 2.4% lower than the comparable three-month period of 1994.
Revenues for the six months ended September 23, 1995 decreased
approximately $568,000 or 1.7% compared to the same period of 1994. The
decrease in revenue is due to a decrease in the number of loads hauled and
the number of miles traveled for the quarter and year to date. There has
been a general weakness in the markets served by the Company's customers,
especially in the construction industry.
The Company's customers are shippers or consignees 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 $107,000 or .7% in the
current quarter and increased by $308,000 or 1.0% for the six months ended
year to date compared to the same periods of 1994. The change in operating
expenses is result of: (1) the decrease in volume; (2) the increase in
depreciation expense as a result of acquiring new tractors and trailers and
(3) a $3,000 loss in the current quarter on disposal of property, plant and
equipment versus a $194,000 gain in the comparable quarter of 1994. 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, in that
most of these loads were in turn hauled by Company drivers.
FINANCIAL CONDITION
Total notes payable and long-term debt was $14,997,000 and $11,711,000 at
September 23, 1995 and March 25, 1995, respectively. The $3,286,000 net
increase in debt is primarily the result of $4,364,000 in new obligations
to finance the equipment additions less the reduction resulting from making
the scheduled debt payments.
CASH FLOWS
The Company had a net increase in cash of $184,000 for the six months ended
September 23, 1995 versus a $169,000 net increase for the six months ended
September 24, 1994. The Company has paid $52,000 in preferred stock
dividends for the six months ended September 23, 1995, representing the
required dividends for two quarters.
<PAGE>
PART II - OTHER INFORMATION
Item 3. Defaults Upon Senior Securities
None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits - Exhibit 27. Financial Data Schedule
(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)
November 2, 1995 BY: Jack F. Schwerman
Date Jack F. Schwerman
Chairman of the Board,
President and Treasurer
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> Mar-25-1995
<PERIOD-START> Mar-26-1995
<PERIOD-END> Sep-23-1995
<CASH> 271436
<SECURITIES> 0
<RECEIVABLES> 5520259
<ALLOWANCES> (40000)
<INVENTORY> 1098032
<CURRENT-ASSETS> 9525646
<PP&E> 54052409
<DEPRECIATION> (33334679)
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<CURRENT-LIABILITIES> 9692629
<BONDS> 11904510
<COMMON> 422089
0
1497470
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<TOTAL-LIABILITY-AND-EQUITY> 32938288
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<EPS-PRIMARY> 3.03
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</TABLE>
