<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
<TABLE>
<S> <C>
Commission File
For the Quarterly Period Ended March 30, 1996 Number 0-22468
</TABLE>
WICKES LUMBER COMPANY
--------------------------------------------
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C>
Delaware 36-3554758
- - --------------------------------------- --------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
706 North Deerpath Drive, Vernon Hills, Illinois 60061
- - ------------------------------------------------ ---------
(Address of principal executive offices) (Zip Code)
</TABLE>
847-367-3400
------------
(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, and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No _______
As of May 1, 1996, the Registrant had 5,651,649 shares of Common Stock, par
value $.01 per share, and 499,768 shares of Class B Non-Voting Common Stock,
par value $.01 per share, outstanding.
<PAGE> 2
WICKES LUMBER COMPANY AND SUBSIDIARIES
INDEX
<TABLE>
<CAPTION>
Page
Number
------
<S> <C> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets
March 30, 1996 (Unaudited) and
December 30, 1995 3
Condensed Consolidated Statements of Earnings
For the three months ended March 30, 1996
and April 1, 1995 (Unaudited) 4
Condensed Consolidated Statements of Cash Flows
For the three months ended March 30, 1996
and April 1, 1995 (Unaudited) 5
Notes to Condensed Consolidated
Financial Statements (Unaudited) 6
Item 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations 10
PART II.
Item 1. Legal Proceedings 15
Item 6. Exhibits and Reports on Form 8-K 15
</TABLE>
2
<PAGE> 3
WICKES LUMBER COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands except share data)
<TABLE>
<CAPTION>
MARCH 30, DECEMBER 30,
ASSETS 1996 1995
------------- -------------
<S> <C> <C>
Current assets:
Cash $ 2,321 $ 87
Accounts receivable, less allowance for doubtful
accounts of $9,503 in 1996 and $8,208 in 1995 60,858 81,792
Inventory 103,029 110,639
Deferred tax asset 25,906 25,906
Prepaid expenses 3,738 1,051
------------- -------------
Total current assets 195,852 219,475
------------- -------------
Property, plant and equipment, net 53,796 56,545
Trademark (net of accumulated amortization of
$9,885 in 1996 and $9,830 in 1995) 7,115 7,170
Deferred tax asset 250 250
Other assets (net of accumulated amortization of
$5,030 in 1996 and $4,464 in 1995) 17,958 19,075
------------- -------------
274,971 302,515
============= =============
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $ 328 $ 424
Accounts payable 38,776 41,457
Accrued liabilities 31,181 37,972
------------- -------------
Total current liabilities 70,285 79,853
------------- -------------
Long-term debt, less current maturities 193,338 205,221
Other long-term liabilities 2,378 2,312
Commitments and contingencies (Note 5)
Common stockholders' equity:
Common stock, par value $.01 (6,147,668 and
6,143,473 shares issued and outstanding in
1996 and 1995, respectively) 61 61
Additional paid-in capital 76,786 76,772
Accumulated deficit (67,877) (61,704)
------------- -------------
8,970 15,129
------------- -------------
Total common stockholders' equity 274,971 302,515
============= =============
</TABLE>
The accompanying notes are an integral part of the Condensed Consolidated
Financial Statements.
3
<PAGE> 4
WICKES LUMBER COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(UNAUDITED)
(in thousands except share and per share
<TABLE>
<CAPTION>
THREE MONTHS ENDED
------------------------------------------
MARCH 30, APRIL 1,
1996 1995
---------- -----------
<S> <C> <C>
Net sales $ 152,508 $ 191,704
Cost of sales 117,578 146,147
---------- -----------
Gross profit 34,930 45,557
---------- -----------
Selling, general and administrative expenses 37,049 46,889
Depreciation, goodwill and trademark amortization 1,432 1,426
Other operating income (888) (1,066)
---------- -----------
37,593 47,249
---------- -----------
Loss from operations (2,663) (1,692)
Interest expense 5,706 5,967
Equity in loss of affiliated company 1,058 -
---------- -----------
Loss before provision for income taxes (9,427) (7,659)
Provision for income taxes (3,253) (3,043)
Minority interest in subsidiaries - (18)
---------- -----------
Net loss $ (6,174) $ (4,598)
========== ===========
Loss per common share $ (1.00) $ (0.75)
========== ===========
Weighted average common shares outstanding 6,159,261 6,136,155
========== ===========
</TABLE>
The accompanying notes are an integral part of the Condensed Consolidated
Financial Statements.
4
<PAGE> 5
WICKES LUMBER COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
---------------------------------------
MARCH 30, APRIL 1,
1996 1995
----------- ------------
<S> <C> <C>
Cash flows from operating activities:
Net loss $ (6,174) $ (4,598)
Adjustments to reconcile net loss to
net cash used in operating activities:
Depreciation expense 1,402 1,326
Amortization of trademark 55 55
Amortization of goodwill 57 44
Amortization of deferred financing and other intangibles 509 469
Provision for doubtful accounts 1,295 1,417
Minority interest - (18)
Gain on sale of assets (185) (29)
Changes in assets and liabilities (net of effects
from acquisitions):
Decrease in accounts receivable 19,639 13,877
Decrease/(increase) in inventory 7,610 (6,588)
Decrease in accounts payable and
accrued liabilities (9,405) (7,498)
Increase in other assets (2,136) (4,688)
------------ ------------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 12,667 (6,231)
------------ ------------
Cash flows from investing activities:
Purchases of property, plant and equipment (139) (1,786)
Proceeds from sales of property, plant and equipment 1,671 45
------------ ------------
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 1,532 (1,741)
------------ ------------
Cash flows from financing activities:
Net borrowing (repayment) under revolving line of credit (11,809) 5,468
Increases (reductions) of note payable (170) 45
Proceeds from issuance of common stock 14 538
------------ ------------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (11,965) 6,051
------------ ------------
NET INCREASE (DECREASE) IN CASH 2,234 (1,921)
Cash at beginning of period 87 2,037
------------ ------------
CASH AT END OF PERIOD $ 2,321 $ 116
============ ============
Supplemental schedule of cash flow information:
Interest paid $ 2,564 $ 2,534
Income taxes paid 122 646
</TABLE>
The accompanying notes are an integral part of the Condensed Consolidated
Financial Statements.
5
<PAGE> 6
WICKES LUMBER COMPANY AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Financial Statement Presentation
The condensed consolidated financial statements present the results of
operations, financial position, and cash flows of Wickes Lumber Company and all
its wholly-owned and majority-owned subsidiaries (the "Company"), except for
Riverside International Corporation ("RIC"), the investment in which is
recorded under the equity method because control is likely to be temporary and
to be lost in the near term. In the first three quarters of 1995, RIC was
reported on a consolidated basis.
The condensed consolidated balance sheet as of March 30, 1996, the
condensed consolidated statements of earnings for the three-month periods ended
March 30, 1996 and April 1, 1995, and the condensed consolidated statements of
cash flows for the three-month period ended March 30, 1996 and April 1, 1995
have been prepared by the Company without audit. In the opinion of management,
all adjustments (which include only normal recurring adjustments) necessary to
present fairly the financial position, results of operations and cash flows at
March 30, 1996 and for all periods presented have been made. The results for
the three month periods ended March 30, 1996 and April 1, 1995 are not
necessarily indicative of the results to be expected for the full year or for
any interim period.
The year-end condensed consolidated balance sheet data was derived
from audited financial statements, but does not include all disclosures
required by generally accepted accounting principles. Certain information and
footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been condensed or
omitted. It is suggested that these condensed consolidated financial
statements be read in conjunction with the financial statements and notes
thereto included in the Company's Annual Report on Form 10-K for the year ended
December 30, 1995 (the "1995 Form 10-K"), filed with the Securities and
Exchange Commission.
Reclassifications
Certain reclassifications have been made to the first quarter
condensed consolidated statement of cash flows to more appropriately reflect
changes in the provision for doubtful accounts and the increase in accounts
receivable.
6
<PAGE> 7
Share Data
During the three-month period ended March 30, 1996 warrants for 1,534
shares of Common Stock were exercised. These warrants were held by present and
former management employees of the Company. In addition, during this period the
Company issued 2,662 shares of Common Stock to its board of directors as
compensation.
2. LONG-TERM DEBT
Long-term debt is comprised of the following at March 30, 1996 (in
thousands):
<TABLE>
<S> <C>
Revolving line of credit . . . . . . . . . . . . . . . . . . . $ 93,212
Senior subordinated notes . . . . . . . . . . . . . . . . . . 100,000
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . 454
Less current maturities . . . . . . . . . . . . . . . . . . . (328)
----------
Total long-term debt . . . . . . . . . . . . . . . . . . . . . $ 193,338
==========
</TABLE>
The revolving credit agreement was amended and restated in its
entirety on March 12, 1996. Among other things, the amendment and restatement
(i) extended the term of the facility 15 months to January 1998, (ii) reduced
the maximum borrowing limit $15 million to $130 million, (iii) modified certain
covenants, including changes to accommodate the Company's fourth quarter 1995
restructuring charge, (iv) required the temporary addition of approximately $12
million of real estate collateral and (v) required the completion by July 31,
1996 of the receipt from Riverside Group, Inc. of $10 million from the sale of
equity securities of the Company.
Under the revolving line of credit, the Company may borrow against
certain levels of accounts receivable and inventory. The unused amount
available for borrowing, at March 30, 1996, was $12,825,000.
3. INCOME TAXES
The provision for income taxes for the first three months of 1996 was
a benefit of $3.3 million compared to a benefit of $3.0 million for the first
three months of 1995. An effective tax rate of 38.5% was used to calculate
income taxes for the first quarter of 1996 compared with an effective rate of
39.7% for the first quarter of 1995. In addition to the effective rate used,
state franchise taxes were calculated separately and are included in the
benefit reported.
7
<PAGE> 8
4. RIVERSIDE INTERNATIONAL CORPORATION
On February 21, 1996, the Company and its RIC subsidiary entered into
an agreement with two investment funds. Pursuant to this agreement, the two
funds are each to invest $5 million in this subsidiary and are each to receive
a 25% equity interest, with the Company retaining an interest slightly less
than 50% and the subsidiary's management receiving the balance of the equity.
A total of $4 million of the funds' investment has been advanced to
RIC as a loan, which is to be converted to equity upon funding of the remaining
$6 million, which is to occur upon satisfaction of certain conditions,
including among other things the resolution of certain legal matters and the
achieving of specified operational levels.
As of March 30, 1996, RIC has controlling interests in two companies
engaged in lumber-related businesses in Russia. The investment in RIC is
recorded under the equity method.
5. COMMITMENTS AND CONTINGENCIES
At March 30, 1996, the Company had accrued approximately $960,000
(included in accrued liabilities at March 30, 1996) for remediation of certain
environmental and product liability matters, principally underground storage
tank removal.
Many of the building center facilities presently and formerly operated
by the Company and its predecessor contained underground petroleum storage
tanks. All such tanks known to the Company located on facilities owned or
operated by the Company have been filled, removed, or are scheduled to be
removed in accordance with applicable environmental laws in effect at the time.
As a result of reviews made in connection with the sale or possible sale of
certain facilities, the Company has found petroleum contamination of soil and
ground water on several of these sites and has taken, and expects to take,
remedial actions with respect thereto. In addition, it is possible that
similar contamination may exist on properties no longer owned or operated by
the Company the remediation of which the Company could under certain
circumstances be held responsible. Since 1988, the Company has incurred
approximately $2.1 million of costs, net of recoveries, with respect to the
filling or removing of underground storage tanks and related investigatory and
remedial actions.
8
<PAGE> 9
In February 1994, the Company was notified that a stock certificate
representing 103,922 shares of Common Stock that had been previously reported
as lost and that had been reissued and transferred to an affiliate of the
Company may in fact not have been lost but instead previously transferred by
the original owner to a third party. In connection with the reissuance of the
allegedly lost stock certificate, the Company examined its records, found no
information concerning a possible prior transfer of the stock certificate, and
received an indemnity from the original owner. If both transferees are
determined to be bona fide purchasers, both may be entitled to ownership of the
103,922 shares, which would result in a corresponding increase in the number of
outstanding shares of Common Stock. In such a case, the Company believes it
would be entitled to indemnity from the original owner, which could be utilized
to purchase and retire an equivalent number of shares. If either of the
purported transferees is determined not to be a bona fide purchaser, its
certificate would be canceled. Litigation has commenced in which, among other
things, the Company is seeking indemnity and a declaratory judgment concerning
the rights and obligations of the various parties and the original owner is
disputing its obligation to indemnify the Company.
At March 30, 1996, the Company's investment in RIC was $3.5 million.
This investment entails significant inherent risks, including expropriation,
legal, currency, crime, management, labor, weather and other operational risks.
The Company is one of many defendants in 164 actions, each of which
seeks unspecified damages, brought in 1993, 1994 and 1995 in various Michigan
state courts against manufacturers and building material retailers by
individuals who claim to have suffered injuries from products containing
asbestos. All of the plaintiffs in these actions are represented by the same
counsel. The Company is aggressively defending these actions and does not
believe that these actions will have a material adverse effect on the Company.
On November 3, 1995, a complaint was filed against the Company, its
directors and Riverside Group, Inc. seeking to enjoin or to obtain damages with
respect to the Company's agreement to issue two million newly-issued shares of
common stock to Riverside Group, Inc. for $10 million (see Item 1. Legal
Proceedings).
In the opinion of management, the potential liability in excess of
amounts accrued for the above matters would not materially affect its financial
condition or results of operations.
9
<PAGE> 10
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following discussion should be read in conjunction with the
Condensed Consolidated Financial Statements and Notes thereto contained
elsewhere herein and in conjunction with the Consolidated Financial Statements
and Notes thereto and Management's Discussion and Analysis of Financial
Condition and Results of Operations contained in the Company's Annual Report on
Form 10-K for the year ended December 30, 1995.
RESULTS OF OPERATIONS
The following table sets forth, for the periods indicated, the
percentage relationship to net sales of certain expense and income items. This
information includes the results from all building centers and component
manufacturing facilities operated by the Company, including those subsequently
closed or sold.
<TABLE>
<CAPTION>
THREE MONTHS ENDED
---------------------------
MARCH 30, APRIL 1,
1996 1995
--------- --------
<S> <C> <C>
Net sales 100.0% 100.0%
Gross profit 22.9% 23.8%
Selling, general and
administrative expense 24.3% 24.5%
Depreciation, goodwill and
trademark amortization 0.9% 0.7%
Other operating income (0.6)% (0.5)%
Loss from operations (1.7)% (0.9)%
</TABLE>
Net Earnings
The Company's first quarter has historically been adversely affected
by seasonal decreases in building and construction activity in the Northeast
and Midwest resulting from winter weather conditions. In the first quarter of
1996, the Northeast experienced record snowfalls which slowed construction in
this area of the country.
The net loss for the three months ended March 30, 1996 was $6,174,000
compared with $4,598,000 for the three months ended April 1, 1995. The
decrease for the three-month period primarily results from lower sales, reduced
gross profit margins, and equity in loss of affiliated company, partially
offset by decreased selling, general and administrative expenses ("SG&A").
10
<PAGE> 11
THREE MONTHS ENDED MARCH 30, 1996 COMPARED
WITH THE THREE MONTHS ENDED APRIL 1, 1995
Net Sales
Net sales for the first quarter of 1996 decreased 20.4% to $152.5
million from $191.7 million for the first quarter of 1995. Same store sales
declined 14.5% compared with the same period last year. The Company believes
that the decrease in same store sales is primarily attributable to severe
weather conditions, a slowdown in residential construction and deflation in
lumber prices. The Company estimates that deflation in lumber prices accounted
for a decrease in total sales of approximately 5.6%, or $8.5 million. The
Company's program to reduce the number of under-performing building centers was
also a major cause of the 1996 sales decline compared with 1995. The Company
currently operates 110 building centers, 20 fewer than in the first quarter of
1995.
Gross Profit
1996 first quarter gross profit decreased to $34.9 million from $45.6
million for the first quarter of 1995, a 23.3% decrease. Gross profit as a
percent of sales decreased to 22.9% of sales for the first quarter of 1996 from
23.8% in 1995. The decline in gross profit as a percent of sales is primarily
attributable to the Company's continued emphasis on sales to the professional
builder, resulting in an increase in the portion of the Company's sales
comprised of lower margin commodity products, and to a lesser extent a program
to reduce the amount of excess and slow-moving inventory . The Company also
estimates the decline in lumber prices during the first quarter of 1996,
compared with the first quarter of 1995, resulted in a decrease of
approximately $1.4 million in total gross profit.
Selling, General and Administrative Expense
SG&A expense decreased to 24.3% of net sales in the first quarter of
1996 compared with 24.5% of net sales in the first quarter of 1995. The
slowdown in new residential construction activity and deflation in lumber
prices have made it difficult for the Company to reduce expense levels to match
the decrease in total sales. Nevertheless, in spite of its 20.4% total sales
decline for the first quarter the Company was able to reduce its total SG&A
expense by 21.0%, as a result of cost reductions affected pursuant to the
Company's restructuring plan begun in December 1995 and previous cost reduction
actions.
11
<PAGE> 12
Total salaries, wages and employee benefits decreased, as a percent of
sales, by 0.1%. As of March 31, 1996, the Company had 3,511 full time and part
time employees, down 23% from March 1995. As a percent of sales, the Company
also experienced decreases in bad debt, travel, postage and office supplies and
marketing expenses, partially offset by increases in utilities, rentals, and
delivery.
Depreciation, Goodwill and Trademark Amortization
Depreciation, goodwill and trademark amortization remained relatively
unchanged at $1.4 million for the first quarters of 1996 and 1995.
Other Operating Income
Other operating income for the first quarter 1996 was $0.8 million.
This was relatively unchanged, as a percent of sales, when compared with the
$1.1 million recorded for the same period in 1995.
Interest Expense
In the first quarter of 1996 interest expense decreased 4.4% to $5.7
million from $6.0 million in the first quarter of 1995. This change reflects a
$14.8 million decrease in average borrowings on the Company's revolving credit
facility. The effective borrowing rate on total long term debt for the first
quarter increased 20 basis points from the first quarter of 1995.
Approximately 96% of the Company's first quarter average borrowings on its
revolving credit facility were LIBOR-based.
Equity in Loss of Affiliated Company
In the first quarter of 1996, the Company recorded a loss of $1.1
million with respect to its investment in its subsidiary engaged in operations
in Russia. In the first quarter of 1995 the Company recorded a loss of $0.3
million, recorded on a consolidated basis, with respect to this subsidiary.
Provision for Income Taxes
An effective tax rate of 38.5% was used to calculate income taxes for
the first quarter of 1996 compared with an effective rate of 39.7% for the
first quarter of 1995. In addition to the effective rate used, state franchise
taxes were calculated separately and are included in the benefit reported.
12
<PAGE> 13
LIQUIDITY AND CAPITAL RESOURCES
The Company's principal sources of working capital and liquidity are
earnings and borrowings under its revolving credit facility. The Company's
primary need for capital resources is to finance inventory and accounts
receivable.
The first three months of the year historically have generated
negative cash flows from operating activities. With the peak building season
historically occurring in the second and third quarters, the Company normally
experiences increases in its accounts receivable and inventory levels during
the first quarter to meet the anticipated increase in sales. However, for the
reasons discussed below, in the first three months of 1996, net cash provided
by operating activities amounted to $12.7 million. This compares favorably
with cash used in operating activities of $6.2 million during the first three
months of 1995. These funds were used to decrease borrowings under the
Company's revolving line of credit by $11.8 million. At the end of the first
quarter of 1996 total borrowings under the revolving line of credit were $20.9
million lower than at the end of the first quarter of 1995.
The Company's accounts receivable balance at the end of the first
quarter of 1996 decreased $21.5 million when compared to the first quarter of
1995, a decrease of 26.1%. Adjusting for building centers acquired,
consolidated and closed since the beginning of 1995, the Company estimates that
comparable accounts receivable were down 23.3%. This decrease is primarily a
result of reduced sales for the first quarter of 1996 when compared with 1995
and to a lesser extent improved collections at recently acquired building
centers.
Inventory at the end of the first quarter of 1996 was $27.6 million,
or 21.2%, lower than at the end of the first quarter of 1995. Approximately
$17.5 million of this reduction is attributable to inventory disposed from
building centers closed in 1995. The Company's inventory control processes and
the decrease in commodity lumber prices in the first quarter of 1996, compared
with the first quarter of 1995, are primarily responsible for the remainder of
the inventory reduction.
The Company's capital expenditures consist primarily of the
construction of storage facilities, the remodeling of building centers and
component manufacturing facilities, and the purchase of equipment and
management information systems. In the first three months of 1996 the Company
spent $0.1 million on capital expenditures. The Company expects to spend
approximately $4 million for all of 1996. Under the Company's bank revolving
credit agreement, as amended, capital expenditures during 1996 are limited to
$6 million plus any portion of 1995's capital expenditures that were not spent.
The Company expects to fund capital expenditures through borrowings and its
internally generated cash flow.
13
<PAGE> 14
The Company maintained excess availability under its revolving line of
credit, throughout the quarter. Under the current terms of the Company's bank
revolving credit agreement the Company believes that it will continue to have
sufficient funds available for its anticipated operations and capital
expenditures. At April 27, 1996, $99.3 million was outstanding under the
Company's revolving line of credit, and the unused availability was
approximately $15.6 million.
On January 11, 1996, the Company entered into a definitive agreement
(the "Riverside agreement") with Riverside Group, Inc. ("Riverside") that
provides for the acquisition by Riverside of 2 million newly-issued shares of
the Company's common stock for $10 million in cash. The transaction is
expected to be completed prior to July 31, 1996. Should the sale to Riverside
not occur, the Company could be required to obtain a waiver of the requirement
contained in its revolving credit facility that this transaction be completed by
such date.
14
<PAGE> 15
PART II
OTHER INFORMATION
Item 1. Legal Proceedings
On November 3, 1995, a complaint styled Morris Wolfson v. J. Steven
Wilson, Kenneth M. Kirschner, Albert Ernest, Jr., Claudia B. Slacik, Jon F.
Hanson, Robert E. Mulcahy, Frederick H. Schultz, Wickes Lumber Company and
Riverside Group, Inc. was filed in the Court of Chancery of the State of
Delaware in and for New Castle County (C.A. No. 14678). As amended, this
complaint alleges, among other things, that the transaction contemplated by the
Riverside Agreement is unfair and constitutes a waste of assets and that the
Company's directors in connection with the transaction breached their fiduciary
duties. The amended complaint, among other things, seeks on behalf of a
purported class of the Company's shareholders to enjoin, or to obtain damages
with respect to, the transaction.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
11.01 Statement regarding computation of
earnings per share.
27.1 Financial data schedule.
(b) Reports on Form 8-K
The Company filed a Current Report on Form 8-K dated January
11, 1996, reporting under Item 5. Other Events a definitive
agreement that provides for the sale to Riverside Group, Inc.
of 2 million newly-issued shares of the registrant's Common
Stock.
15
<PAGE> 16
SIGNATURES
Pursuant to the requirements of Section 13 or 15 (d) 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.
WICKES LUMBER COMPANY
By: /s/ J. Steven Wilson
----------------------------------
J. Steven Wilson
Chairman and Chief Executive
Officer
By: /s/ Douglas J. Woods
----------------------------------
Douglas J. Woods
President and Chief Operating
Officer
By: /s/ George A. Bajalia
----------------------------------
George A. Bajalia
Senior Vice President and Chief
Financial Officer
Date: May 14, 1996
16
<PAGE> 1
Exhibit 11.01
COMPUTATION OF EARNINGS PER SHARE
AND EQUIVALENT SHARES OF COMMON STOCK
(Unaudited)
(thousands except share and per share amounts)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
----------------------------------
MARCH 30, APRIL 1,
1996 1995
--------- ---------
<S> <C> <C>
Average Shares Outstanding
1. Weighted average number of shares of
common stock outstanding during the
period 6,145,220 6,118,807
2. Net additional common equivalent shares
assuming exercise of common stock
warrants as computed under the treasury
stock method 14,041 17,348
--------- ---------
3. Weighted average number of shares and
equivalent shares of common stock
outstanding during the period 6,159,261 6,136,155
========= =========
Income (Loss)
4. Net loss available for common stock $ (6,174) $ (4,598)
========= ==========
Per Share Amounts
5. Earnings (loss) $ (1.00) $ (0.75)
========= ==========
</TABLE>
Earnings (loss) per share is computed by dividing net income (loss)
available for common stock, by weighted average number of shares of common
stock and common stock equivalents (warrants), unless anti-dilutive,
outstanding during the periods.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE MARCH
30, 1996 FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-28-1996
<PERIOD-END> MAR-30-1996
<CASH> 2,321
<SECURITIES> 0
<RECEIVABLES> 70,361
<ALLOWANCES> 9,503
<INVENTORY> 103,029
<CURRENT-ASSETS> 195,852
<PP&E> 82,313
<DEPRECIATION> 28,517
<TOTAL-ASSETS> 274,971
<CURRENT-LIABILITIES> 70,285
<BONDS> 100,000
0
0
<COMMON> 61
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<INCOME-TAX> (3,253)
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<EPS-PRIMARY> (1.00)
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</TABLE>
