<PAGE>
Dear Stockholders:
This year your Company had net revenues of $61.6 million which generated net
profits after taxes of $1.3 million, or $0.40 per share. This is down 11.4% in
revenues and 60.3% in profits from last year's record high.
Even though our results are down from last year, we are pleased to report that
our efforts to diversify the Company's revenues are beginning to show some
results. While we experienced a $7.9 million decline in overall revenues, we
experienced a $14.3 million decline in sales of hosiery equipment. The $14.3
million decline in our major product was partially offset by increases of $3.4
million in sales of sweater machines and related equipment (in both the U.S.A.
and the United Kingdom), $1.8 million in sales of dyeing and finishing equipment
and $1.2 million in spare parts.
We are continuing our efforts to diversify our product line within the textile
industry. We are hopeful of adding several additional lines during the coming
twelve-month period.
The sale of new Lonati machines for the sock industry in the United States and
Canada continues to be our major product line. At the time of this writing, the
demand for sock machines is very weak and has been soft for at least the past
six months.
There is a "shaking out" of sock manufacturers all over the world, as well as
among the manufacturers of sock machinery. This "shake out" has taken the form
of a price war among machine builders who have been slashing their sales prices
and, therefore, their distributors' and agents' profits as well. We see this
continuing for at least the next six to twelve months. We are confident that the
Lonati Group will weather this slow market and intense competition, as they are
financially sound and have the technological strength to develop new products
which should enhance even further their market dominance. During this time of
turmoil and change, we are not optimistic about growth either in sales or
profitability in the sock machine area.
In the tumultuous textile industry, this is the ninth consecutive year that
your Company has shown a profit. During the last 24 months we have been able to
expand the scope of activities of the business. Our diversification has been
accomplished with a mixture of both seasoned professionals with substantial
expertise in their respective areas, as well as young, aggressive newcomers.
Among the "new blood" are Bryan and Mark Speizman.
Hopefully, these additions to our personnel will ensure the continuation of
growth and profitability in your Company for many years to come. There is no
doubt that we could not have gained the measure of success we have been
fortunate to obtain without the dedicated efforts of all of the people who work
at Speizman Industries.
Sincerely,
SPEIZMAN INDUSTRIES, INC.
(Signature of Robert S. Speizman appears)
Robert S. Speizman
President
<PAGE>
SPEIZMAN INDUSTRIES, INC. AND SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL DATA
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FISCAL YEAR ENDED
<CAPTION>
JULY 1, JULY 2, JULY 3, JUNE 27, JUNE 29,
1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
<CAPTION>
(IN THOUSANDS, EXCEPT NET INCOME PER SHARE DATA)
<S> <C> <C> <C> <C> <C>
STATEMENT OF INCOME DATA:
Net revenues $61,597 $69,526 $39,552 $26,564 $20,107
Cost of sales 53,986 60,004 32,635 22,997 16,829
Gross profit 7,611 9,522 6,917 3,567 3,278
Selling, general and
administrative expenses 5,478 4,350 3,651 2,546 2,202
Operating income 2,133 5,172 3,266 1,021 1,076
Interest (income) expense, net (15) 6 186 196 300
Income before taxes on income 2,148 5,166 3,080 825 776
Taxes on income (1) 854 1,869 661 82 64
Net income 1,294 3,297 2,419 743 712
Preferred stock dividends -- 41 -- -- --
Net income applicable to common stock $ 1,294 $ 3,256 $ 2,419 $ 743 $ 712
PER SHARE DATA:
Net income per share $ .40 $ 1.12 $ 1.03 $ .32 $ .33
Weighted average number of shares 3,271 2,905 2,360 2,297 2,185
BALANCE SHEET DATA:
Working capital $17,613 $16,579 $ 4,553 $ 2,792 $ 2,772
Total assets 35,704 30,160 18,145 13,519 7,223
Short-term debt -- -- 175 401 248
Long-term debt, including current
maturities 147 293 1,060 1,374 1,845
Redeemable preferred stock -- -- -- -- 234
Stockholders' equity 18,782 17,483 5,137 2,714 1,836
</TABLE>
(1) Reflects the utilization of prior net operating losses to completely offset
federal income taxes in years 1991 and 1992 and to partially offset federal
income taxes in 1993.
2
<PAGE>
BUSINESS OVERVIEW
GENERAL
Speizman Industries, Inc. (the "Company") is the leading distributor of new sock
knitting machines in the United States. It distributes technologically advanced
sock knitting machines manufactured by Lonati, S.p.A., Brescia, Italy
("Lonati"), which the Company believes is the world's largest manufacturer of
hosiery knitting equipment. It also distributes Lonati sock and sheer hosiery
knitting machines in Canada. In addition, through sales arrangements with other
European textile machinery manufacturers, the Company distributes other sock
knitting machines, knitting machines for underwear, sweaters, collars and trim,
and other knitted fabrics and other equipment related to the manufacture of
socks and sheer hosiery, principally in the United States and Canada. The
Company also sells dyeing and finishing equipment for the textile industry. The
Company sells textile machine parts and used textile equipment in the United
States and a number of foreign countries.
Prior to 1990, the Company also manufactured mechanical single cylinder sock
knitting machines. In 1990, the Company ceased its manufacturing activities due
to a decline in the profitability of this line of business and in order to focus
the Company's activities on the distribution of single cylinder machines
manufactured by Lonati.
ALL REFERENCES HEREIN ARE TO THE COMPANY'S 52-OR-53 WEEK FISCAL YEAR ENDING ON
THE SATURDAY CLOSEST TO JUNE 30. FISCAL 1995, 1994, 1992, AND 1991, EACH
CONTAINED 52 WEEKS AND ENDED ON JULY, 1, 1995, JULY 2, 1994, JUNE 27, 1992 AND
JUNE 29, 1991. FISCAL 1993 CONTAINED 53 WEEKS AND ENDED ON JULY 3, 1993.
The Company distributes new knitting and other machines and equipment under
written agreements and other arrangements with the manufacturers. The following
table sets forth certain information concerning certain of these additional
distribution arrangements:
<TABLE>
<CAPTION>
MANUFACTURER MACHINE TERRITORY
<S> <C> <C>
Santoni, S.r.l., Circular knitting machines for United States and Canada
Brescia, Italy underwear, men's socks and
women's sheer hosiery and
surgical support hose
Jumberca, S.A., Sweater knitting machines United States, Canada, the United
Badalona, Spain Kingdom and Ireland
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
MANUFACTURER MACHINE TERRITORY
Zamark, S.p.A.. Flat knitting machines for collars United States, Canada, the United
Somma Lombardo, Italy and trim and sweaters Kingdom and Ireland
<S> <C> <C>
Conti Complett, S.p.A., Sock toe closing machines and sock United States
Milan, Italy turning devices
Sperotto Rimar, S.p.A., Fabric processing and finishing United States
Malo, Italy machines
Corino Machine, S.r.l., Fabric handling equipment United States and Canada
Alba, Italy
Fimatex, Turning devices for sock machines United States
Scandicci, Italy
Orizio Paolo, S.p.A., Fabric knitting machines United States
Brescia, Italy
</TABLE>
Sales by the Company in the United States and Canada of machines manufactured by
Lonati, S.p.A., generated the following percentages of the Company's net
revenues: 44.4% in 1995, 65.6% in 1994 and 66.7% in 1993. In addition, sales of
Santoni machines in the United States and Canada generated 9.3%, 4.4% and 5.4%
of the Company's net revenues in fiscal 1995, 1994 and 1993, respectively. Sales
of machines manufactured by Zamark (an affiliate of Lonati) and Conti Complett
generated an aggregate of 5.3%, 4.4% and 0.6% of the Company's net revenues in
fiscal 1995, 1994 and 1993, respectively. Sales of machines manufactured by
Jumberca generated 9.8%, 9.8% and 3.2% of the Company's net revenues in fiscal
1995, 1994 and 1993, respectively.
The Company sells used machinery and parts to the textile industry. The Company
carries significant amounts of machinery and parts inventories to meet
customers' requirements and to assure itself of an adequate supply of used
machinery. The Company acts as a liquidator of textile mills and as a broker in
the purchase and sale of such mills.
MARKETING AND SALES
The Company markets and sells knitting machines and related equipment primarily
by maintaining frequent contacts with customers and understanding of its
customers' individual business needs. Salespersons will set up competitive
trials in a customer's plant and allow the customer to use the Company's machine
in its own work environment alongside competing machines for two weeks to three
months. The Company also offers customers the opportunity to send their
employees to the Company for training courses on the operation and service of
the machines and, depending on the number of machines purchased and the number
of employees to train, may offer such training courses at the customer's
facility. In addition, the Company exhibits its equipment at trade shows and
uses its private showroom to demonstrate new machines. These marketing
strategies are complemented by the Company's commitment to service and
continuing education. At August 15, 1995, the Company employed approximately 13
salespersons and 26 technical representatives. In addition to its sales staff,
the Company uses over 30 commission sales agents in a number of foreign
countries in connection with its sales of used machines.
4
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
GENERAL
The Company's revenues are generated primarily from its distribution of textile
equipment, principally knitting machines and dyeing and finishing equipment, to
manufacturers of textile products and, to a lesser extent, from the sale of
parts used in such equipment and the sale of used textile equipment.
RESULTS OF OPERATIONS
YEAR ENDED JULY 1, 1995 COMPARED TO YEAR ENDED JULY 2, 1994
NET REVENUES. Net revenues in fiscal 1995 were $61.6 million as compared to
$69.5 million in fiscal 1994, a decrease of $7.9 million, or 11.4%. This
decrease reflects a $14.3 million decline in sales of hosiery equipment,
partially offset by increases of $3.4 million in the sales of sweater machines
and related equipment, $1.8 million in the sales of dyeing and finishing
equipment, and $1.2 million in the sales of spare parts. The Company's backlog
of unfilled orders for new and used machines at July 1, 1995 was $4.1 million as
compared to $15.1 million at July 2, 1994. The decline in backlog is attributed
to weakened demand for sock and sweater machines.
COST OF SALES. In fiscal 1995, cost of sales was $54.0 million as compared to
$60.0 million in fiscal 1994, a decrease of $6.0 million or 10.0%. Cost of sales
as a percent of net revenues increased to 87.6% in fiscal 1995 as compared to
86.3% in fiscal 1994. Approximately 85% of this increase is attributable to
increased field service expenses associated with new machines. The remainder is
related to leveling of demand.
SELLING EXPENSES. Selling expenses increased to $3.6 million in fiscal 1995 from
$2.4 million in fiscal 1994, an increase of 48.8%. This increase resulted from
the start-up of a foreign knitting machine division, as well as increased
selling activities, overall. Major components of the increase were salespersons'
salaries and commissions, advertising and exhibitions, travel, warehouse and
office space cost, letter of credit expense and insurance expense.
GENERAL AND ADMINISTRATIVE EXPENSES. General and administrative expenses, at
$1,895,000 in fiscal 1995, were down slightly from $1,942,000 in fiscal 1994.
The decrease reflects declines in salaries and bonuses, partially offset by
increases in payroll and other taxes and in provisions for losses on accounts
receivable. As a percent of net revenues, general and administrative expenses
were 3.1% in 1995 as compared to 2.8% in fiscal 1994, reflecting the 11.4%
decrease in net revenues between the two fiscal years.
INTEREST EXPENSE. Interest expense is expressed net of interest income. In
fiscal 1995, interest income exceeded interest expense by $15,000. Net interest
expense was $6,000 in fiscal 1994.
5
<PAGE>
TAXES ON INCOME. The provision for taxes on income in fiscal 1995 was 39.8% of
income before taxes. The provision for taxes on income in fiscal 1994 was 36.2%.
NET INCOME. Net income applicable to common stock decreased to $1.3 million in
fiscal 1995 from $3.3 million in fiscal 1994. Net income per share decreased to
$0.40 as compared to $1.12 per share in fiscal 1994 on a 12.6% increase in the
equivalent number of common shares outstanding.
YEAR ENDED JULY 2, 1994 COMPARED TO YEAR ENDED JULY 3, 1993
NET REVENUES. Net revenues in fiscal 1994 were $69.5 million as compared to
$39.6 million in fiscal 1993, an increase of $29.9 million, or 75.8%. This
increase reflects increases of $21.5 million in sales of hosiery equipment, $7.1
million in sweater machines and related equipment and $1.3 million from all
other activities. The Company's backlog of unfilled orders for new and used
machines at July 2, 1994, was $15.1 million as compared to $24.5 million at July
3, 1993.
COST OF SALES. In fiscal 1994, cost of sales was $60.0 million as compared to
$32.6 million for fiscal 1993, an increase of $27.4 million, or 83.9%. Cost of
sales as a percentage of net revenues increased to 86.3% from 82.5% in fiscal
1993. This increase in cost of sales in fiscal 1994 reflected a narrowing of
margins due to the somewhat lower sales prices in response to a leveling of
demand, as well as increased competition for certain hosiery machines.
SELLING EXPENSES. Selling expenses increased to $2.4 million in fiscal 1994 from
$2.0 million in fiscal 1993, an increase of 22.6%, reflecting the Company's
increased selling activities. The principal components of this increase were
salespersons' salaries and commissions, advertising and exhibitions, travel, and
warehouse and office space cost. As a percentage of net revenues, selling
expenses declined to 3.5% in fiscal 1994 as compared to 5.0% in fiscal 1993.
GENERAL AND ADMINISTRATIVE EXPENSES. General and administrative expenses were
$1.9 million in fiscal 1994 as compared to $1.7 million in fiscal 1993.
Principal components of the $256,000 increase were increases in salaries and
bonuses, partially offset by declines in life insurance expenses and in
provisions for losses on accounts receivable. As a percentage of net revenues,
general and administrative expenses decreased to 2.8% in fiscal 1994 as compared
to 4.3% in fiscal 1993.
INTEREST EXPENSE. Interest expense is expressed net of interest income. Interest
expense declined from $186,000 in fiscal 1993 to $6,000 in fiscal 1994. This
decline reflects the elimination of all debt to stockholders in fiscal 1994,
reduced interest paid to lending institutions, as well as an increase of
$103,000 in interest income in fiscal 1994.
TAXES ON INCOME. The provision for taxes on income in fiscal 1994 was 36.2% of
income before taxes as compared to 21.5% of such income in fiscal 1993. The
income tax provision
6
<PAGE>
in fiscal 1993 was favorably affected by utilization of the Company's federal
operating loss carryforwards. Such carryforwards were fully utilized during
fiscal 1993.
NET INCOME. Net income applicable to common stock increased in fiscal 1994 by
$837,000 to $3.3 million from $2.4 million in fiscal 1993. That represents an
increase of 34.6% in fiscal 1994 over fiscal 1993. Net income per share
increased in fiscal 1994 to $1.12 as compared to $1.03 per share in fiscal 1993,
on a 23.1% increase in the equivalent number of common shares outstanding.
JUMBERCA AGREEMENT
Prior to its amendment in March 1995, the Jumberca Agreement contained certain
minimum purchase requirements for the Jumberca sweater and fabric knitting
machines. The Company did not meet the minimum purchase requirements under the
Jumberca Agreement with regard to either type of machine in fiscal 1995 due
principally to weakened demand for such machines. Due, in part , to the weakened
demand, at the Company's request, in March 1995, the parties amended the
Jumberca Agreement to eliminate the minimum purchase requirements thereunder and
to allow for the termination of the agreement prior to its original termination
date in January 1997. In accordance with the terms of the Jumberca Agreements,
as amended in March 1995, the Company terminated the agreement with regard to
the Jumberca fabric knitting machines in July 1995 and the agreement will
terminate with regard to the Jumberca sweater knitting machines in December
1995. Although the Company believes that the weakened demand for the machines
and the termination of the Jumberca Agreement will have an adverse effect on its
net revenues in fiscal 1996, it does not believe that it will have any such
effect on its net income for the year.
LIQUIDITY AND CAPITAL RESOURCES
The Company filed a registration statement on Form S-1 (Registration No.
33-69748), and amendments thereto, with the Securities and Exchange Commission
for the offering of 1,430,766 shares of the Company's Common Stock of which
700,000 were offered by the Company and 730,766 were offered by certain
stockholders. This registration statement was declared effective by the
Securities and Exchange Commission on November 12, 1993. Subsequently, the 15%
over-allotment provision was elected by the underwriters. As a result, the
offering was increased by 214,614 shares, of which 164,164 were offered by the
Company and 50,000 shares were offered by a stockholder. The Company used net
proceeds of this offering (approximately $9.3 million) to collateralize letters
of credit, repurchase preferred stock, repay indebtedness owed to the Company's
President and principal stockholder, finance inventories of new and used
machines and for general corporate purposes.
The Company's operations require a substantial line of letters of credit to
cover its customers' orders. The Company's credit facility provides for an
overall facility of $14.0 million for
7
<PAGE>
letters of credit, including up to $2.0 million in revolving funds. This
facility expires October 31, 1996. Management believes that this facility will
be adequate to meet current financial requirements.
Working capital increased by $1.0 million to $17.6 million at July 1, 1995 as
compared to $16.6 million at July 2, 1994. Operating activities required $2.4
million in fiscal 1995 as compared to $2.9 million required by such activities
in fiscal 1994. This decrease in funds required resulted essentially from a $6.3
million increase in inventories and a $1.2 million increase in prepaid expenses,
which were largely funded by a $5.0 million increase in accounts payable. As a
result, cash and cash equivalents declined from $5.4 million at July 2, 1994, to
$2.4 million at July 1, 1995.
SEASONALITY AND OTHER FACTORS
There are certain seasonal factors that may affect the Company's business.
Traditionally, manufacturing businesses in Italy close for the month of August,
and the Company's customers close for one week in July. Consequently, no
shipments or deliveries, as the case may be, of machines distributed by the
Company that are manufactured in Italy are made during these periods in the
Company's first quarter. In addition, manufacturing businesses in Italy
generally close for two weeks in December, during the Company's second quarter.
Fluctuations on customer orders or other factors may affect quarterly variations
in net revenues from year to year.
EFFECTS OF INFLATION AND CHANGING PRICES
Management believes that inflation has not had a material effect on the
Company's operations.
A substantial portion of the Company's machine and spare part purchases are
denominated and payable in Italian lira. Currency fluctuations of the lira could
result in substantial price level changes and therefore impede or promote
import/export sales and substantially impact profits. However, to reduce
exposure to adverse foreign currency fluctuations during the period from
customer orders to payment for goods sold, the Company enters into forward
exchange contracts. The Company is not able to assess the quantitative effect
that such currency fluctuations could have upon the Company's operations. There
can be no assurance that fluctuations in foreign currency exchange rates will
not have a significant adverse effect on future operations.
In addition, the Jumberca Agreement denominates the purchase prices for the
Jumberca machines specified therein in Spanish pesetas. Since February 1994 to
date, the Company, in orders that it has placed with Jumberca, has denominated
the purchase price for the machines ordered in U.S. dollars and Jumberca has
accepted all such orders. The Company intends to continue this practice (which
eliminates the risk of adverse fluctuations in the value of the peseta as
compared to the dollar during the period between the date a machine is ordered
and the payment date) through December 1995, the termination date of the
8
<PAGE>
Jumberca Agreement, with regard to any Jumberca machines that it purchases
during this period.
Under the Jumberca Agreement, in the event that the value of the peseta as
compared to the U.S. dollar is below a specified level at the time a machine is
ordered, there is an automatic upward adjustment of the specified purchase
price. (Since February 1994, the date of the Jumberca Agreement, to date, the
value of the peseta as compared to the dollar has not been below the level
specified therein at any time that the Company ordered a machine.) There is no
similar adjustment provision in the Jumberca Agreement in the event that the
value of the peseta as compared to the dollar increases. Also since February
1994 to date, in a number of instances, the Company has not paid Jumberca the
purchase prices for the machines specified in the Jumberca Agreement, but rather
has negotiated the purchase price for a particular machine at the time it places
the order based on, among other things, the then current value of the peseta and
the dollar, the number of machines ordered and competitive and other market
conditions.
9
<PAGE>
MARKET AND DIVIDEND INFORMATION
The Company's Common Stock was listed on October 6, 1993, on the NASDAQ National
Market System under the symbol "SPZN." Previously, the Common Stock was listed
on the NASDAQ Small-Cap Market System. The following table sets forth for the
periods indicated (i) before October 6, 1993, the high and low bid prices per
share of Common Stock as reported by the NASDAQ Small-Cap Market System and (ii)
after October 5, 1993, the high and low sales prices as reported by the NASDAQ
National Market System.
<TABLE>
<CAPTION>
HIGH LOW
<S> <C> <C>
FISCAL 1994
First Quarter (ended October 2, 1993) $19.50 $10.00
Second Quarter (ended January 1, 1994) 14.25 12.00
Third Quarter (ended April 2, 1994) 17.50 11.25
Fourth Quarter (ended July 2, 1994) 13.50 7.25
FISCAL 1995
First Quarter (ended October 1, 1994) 8.75 6.00
Second Quarter (ended December 31, 1994) 6.50 3.22
Third Quarter (ended April 1, 1995) 5.38 3.38
Fourth Quarter (ended July 1, 1995) 6.75 4.25
</TABLE>
As of June 30, 1995, there were approximately 453 stockholders of record of the
Common Stock.
The Company has never declared or paid any dividends on its Common Stock. On
November 29, 1993, the Company purchased all of the 8,147 outstanding shares of
its 5% noncumulative nonvoting preferred stock, par value $100 per share (the
"5% Preferred Stock"), for $100.00 per share. Under the terms of the 5%
Preferred Stock, the Company was obligated to pay a cash dividend of $5.00 per
share in connection with this purchase. Consequently, on November 29, 1993, a
dividend of $40,735 was paid to the former holders of the 5% Preferred Stock.
Future cash dividends, if any, will be at the discretion of the Company's Board
of Directors and will depend upon, among other things, future earnings,
operations, capital requirements, surplus, restrictive covenants in agreements
to which the Company may be subject, general business conditions and such other
factors as the Board of Directors may deem relevant. The Company's present
credit facility contains certain financial and other covenants that could limit
the Company's ability to pay cash dividends on its capital stock.
10
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Board of Directors and Stockholders
Speizman Industries, Inc.
We have audited the accompanying consolidated balance sheets of Speizman
Industries, Inc. and subsidiaries as of July 1, 1995 and July 2, 1994, and the
related consolidated statements of income, stockholders' equity and cash flows
for each of the three years in the period ended July 1, 1995. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of Speizman Industries,
Inc. and subsidiaries at July 1, 1995 and July 2, 1994, and the results of their
operations and their cash flows for each of the three years in the period ended
July 1, 1995, in conformity with generally accepted accounting principles.
(Signature of BDO Seidman, LLP appears here)
BDO SEIDMAN, LLP
Charlotte, North Carolina
September 1, 1995
11
<PAGE>
SPEIZMAN INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
YEAR ENDED
JULY 1, JULY 2, JULY 3,
1995 1994 1993
<S> <C> <C> <C>
NET REVENUES (Note 1) $61,596,833 $69,525,581 $39,552,021
COSTS AND EXPENSES:
Cost of sales 53,986,242 60,003,901 32,634,909
Selling expenses 3,582,719 2,407,086 1,964,246
General and administrative expenses 1,894,915 1,942,375 1,686,722
Total costs and expenses 59,463,876 64,353,362 36,285,877
2,132,957 5,172,219 3,266,144
INTEREST (INCOME) EXPENSE, net of interest
income of $101,562, $128,675, and $26,031 (14,858) 6,393 186,388
Income before taxes on income 2,147,815 5,165,826 3,079,756
TAXES ON INCOME (Note 5) 854,000 1,869,000 661,000
NET INCOME 1,293,815 3,296,826 2,418,756
Preferred stock dividends -- 40,735 --
NET INCOME APPLICABLE TO COMMON STOCK $ 1,293,815 3,256,091 $ 2,418,756
NET INCOME PER SHARE $ 0.40 $ 1.12 $ 1.03
Weighted average number of common and equivalent shares 3,271,464 2,904,525 2,359,754
</TABLE>
See accompanying summary of accounting policies and notes to consolidated
financial statements.
12
<PAGE>
SPEIZMAN INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
<S> <C> <C>
JULY 1, JULY 2,
1995 1994
ASSETS
CURRENT:
Cash and cash equivalents $ 2,436,859 $ 5,433,664
Accounts receivable (Notes 2 and 6) 16,078,683 15,170,190
Inventories (Notes 3 and 6) 13,428,014 7,296,836
Prepaid expenses and other current assets 2,458,355 1,182,894
TOTAL CURRENT ASSETS 34,401,911 29,083,584
PROPERTY AND EQUIPMENT: (Notes 4 and 7)
Leasehold improvements 543,874 542,361
Machinery and equipment 876,565 509,197
Furniture, fixtures, and transportation equipment 834,187 877,498
2,254,626 1,929,056
Less accumulated depreciation and amortization (1,440,688) (1,409,050)
NET PROPERTY AND EQUIPMENT 813,938 520,006
OTHER 488,609 556,271
$35,704,458 $30,159,861
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT:
Accounts payable $15,056,927 $10,041,865
Customers' deposits 884,881 1,827,196
Accrued expenses 833,886 515,118
Current maturities of long-term debt (Note 7) 13,190 120,630
TOTAL CURRENT LIABILITIES 16,788,884 12,504,809
LONG-TERM DEBT (Note 7) 133,629 172,153
TOTAL LIABILITIES 16,922,513 12,676,962
COMMITMENTS (Notes 4, 9, 11, 12 and 13)
STOCKHOLDERS' EQUITY (Notes 8, 9 and 10):
Common Stock -- par value $.10; authorized 6,000,000 shares; issued
3,236,199 and 3,234,949 shares 323,620 323,495
Additional paid-in capital 12,459,965 12,455,590
Retained Earnings 6,097,426 4,803,611
Foreign currency translation adjustment 731 --
Total 18,881,742 17,582,696
Treasury stock, at cost, 27,600 common shares (99,797) (99,797)
TOTAL STOCKHOLDERS' EQUITY 18,781,945 17,482,899
$35,704,458 $30,159,861
</TABLE>
See accompanying summary of accounting policies and notes to consolidated
financial statements.
13
<PAGE>
SPEIZMAN INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FOREIGN
ADDITIONAL RETAINED CURENCY
PREFERRED COMMON COMMON PAID-IN EARNINGS TRANSLATION TREASURY STOCKHOLDERS'
STOCK SHARES STOCK CAPITAL (DEFICIT) ADJUSTMENT STOCK EQUITY
BALANCE, JUNE 28,
1992 $894,152 1,994,699 $199,470 $ 2,591,171 $ (871,236) $ -- $(99,797) $ 2,713,760
Net income -- -- -- -- 2,418,756 -- -- 2,418,756
Exercise of stock
options -- 4,142 414 4,317 -- -- -- 4,731
BALANCE, JULY 3,
1993 894,152 1,998,841 199,884 2,595,488 1,547,520 -- (99,797 ) 5,137,247
Net income before
preferred stock
dividend -- -- -- -- 3,296,826 -- -- 3,296,826
Preferred stock
dividend -- -- -- -- (40,735) -- -- (40,735)
Redemption of
preferred stock (894,152 ) -- -- -- -- -- -- (894,152)
Conversion of
preferred stock to
common stock -- 240,770 24,077 55,376 -- -- -- 79,453
Net proceeds of
common stock
offering -- 864,609 86,461 9,163,885 -- -- -- 9,250,346
Exercise of stock
options -- 130,729 13,073 174,841 -- -- -- 187,914
Tax effect of
exercise of stock
options -- -- -- 466,000 -- -- -- 466,000
BALANCE, JULY 2,
1994 $ -- 3,234,949 323,495 12,455,590 4,803,611 -- (99,797 ) 17,482,899
Net income -- -- -- -- 1,293,815 -- -- 1,293,815
Exercise of stock
options -- 1,250 125 4,375 -- -- -- 4,500
Foreign currency
translation
adjustment -- -- -- -- -- 731 -- 731
BALANCE, JULY 1,
1995 $ -- 3,236,199 $323,620 $12,459,965 $ 6,097,426 $ 731 $(99,797) $18,781,945
</TABLE>
See accompanying summary of accounting policies and notes to consolidated
financial statements.
14
<PAGE>
SPEIZMAN INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
YEAR ENDED
JULY 1, JULY 2, JULY 3,
1995 1994 1993
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 1,293,815 $ 3,296,826 $ 2,418,756
Adjustments to reconcile net income to net cash provided
by (used in) operating activities:
Depreciation and amortization 166,965 193,133 219,293
Provision for losses on accounts receivable 171,477 17,850 83,840
Provision for inventory obsolescence 200,000 200,000 200,000
Provision for deferred income taxes (75,000) 109,000 (390,000)
Provision for deferred compensation (6) 28,788 70,000
Foreign currency translation adjustment 731 -- --
(Increase) decrease in:
Accounts receivable (1,079,970) (4,322,948) (5,991,612)
Inventories (6,331,178) (2,741,376) 1,363,427
Prepaid expenses (1,176,461) (554,615) 228,795
Other assets 43,662 (168,226) (56,682)
Increase (decrease) in:
Accounts payable 5,015,062 2,237,330 1,249,242
Accrued expenses and customers' deposits (623,547) (1,159,937) 1,493,546
Net cash provided by (used in) operating activities (2,394,450) (2,864,175) 888,605
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (520,274) (102,723) (119,647)
Proceeds from property and equipment disposals 59,377 3,501 16,537
Net cash used in investing activities (460,897) (99,222) (103,110)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net payments on notes payable -- (174,785) (226,359)
Principal payments on long term debt (145,958) (734,800) (579,641)
Net proceeds of common stock offering -- 9,250,346 --
Dividends on preferred stock -- (40,735) --
Redemption of preferred stock -- (814,699) --
Issuance of common stock upon exercise of stock options 4,500 187,914 4,731
Net cash provided by (used in) financing activities (141,458) 7,673,241 (801,269)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (2,996,805) 4,709,844 (15,774)
CASH AND CASH EQUIVALENTS, at beginning of year 5,433,664 723,820 739,594
CASH AND CASH EQUIVALENTS, at end of year $ 2,436,859 $ 5,433,664 $ 723,820
</TABLE>
See accompanying summary of accounting policies and notes to consolidated
financial statements.
15
<PAGE>
SPEIZMAN INDUSTRIES, INC. AND SUBSIDIARIES
SUMMARY OF ACCOUNTING POLICIES
PRINCIPLES OF CONSOLIDATION
The consolidated financial statements of Speizman Industries, Inc. (the
"Company") include all of its subsidiaries, all of which are majority owned. All
material intercompany transactions (domestic and foreign) have been eliminated.
The financial statements of the Company's United Kingdom subsidiary are
translated from pounds sterling to U.S. dollars in accordance with generally
accepted accounting principles.
REVENUE RECOGNITION
The major portion of the Company's revenues consists of sales and commissions on
sales of machinery and equipment. The profit derived therefrom is recognized in
full at the time of shipment, except that commissions receivable over more than
one year are recognized at their discounted present value. Total sales
commissions included in net revenues approximated $286,000, $142,000 and
$1,041,000 for the years ended July 1, 1995, July 2, 1994 and July 3, 1993,
respectively.
CASH AND CASH EQUIVALENTS
For purposes of the statements of cash flows, the Company considers all highly
liquid debt instruments with a maturity of three months or less to be cash
equivalents.
INVENTORIES
Inventories are carried at the lower of cost or market. Cost is computed, in the
case of machines, on an identified cost basis and, in the case of other
inventories, on an average cost basis.
PROPERTY AND EQUIPMENT
Property and equipment are stated at cost. Depreciation is computed over the
estimated useful lives of the assets by the straight-line method for financial
reporting purposes and by accelerated methods for income tax purposes.
FOREIGN EXCHANGE CONTRACTS
The Company enters into foreign currency contracts to reduce the foreign
currency exchange risks. Foreign currency hedging contracts obligate the Company
to buy a specified amount of foreign currency at a fixed price in specific
future periods. Realized and unrealized gains and losses are recognized in net
income in the period of the underlying transaction. As of July 1, 1995, the
Company had contracts maturing through December 1995 to purchase approximately
27.3 billion Lira, approximately $16.7 million at the spot rate on that date.
16
<PAGE>
TAXES ON INCOME
For the fiscal year ended 1993 the Company followed the liability method of
accounting for income taxes in accordance with the Financial Accounting
Standards ("FAS") Board Statement No. 96. For fiscal years ended 1995 and 1994,
the Company adopted the FAS Statement No. 109, "Accounting for Income Taxes",
which changes the liability approach to calculating deferred income taxes set
forth in Statement No. 96. The impact of adopting the rules on the Company's
financial statements was not material.
INCOME PER SHARE
Income per share is computed on the weighted average number of common and
equivalent shares outstanding during the period. Common equivalent shares
include those common shares which would be issued upon the full conversion of
the outstanding convertible preferred stock and those common shares issuable
upon the exercise of the stock options, when dilutive, net of shares assumed to
have been repurchased with the proceeds.
FISCAL YEAR
The Company maintains its accounting records on a 52-53 week fiscal year. The
fiscal year ends on the Saturday closest to June 30. Years ending July 1, 1995
and July 2, 1994 included 52 weeks. The year ended July 3, 1993 included 53
weeks.
RECLASSIFICATION
Certain 1993 amounts have been reclassified to conform with 1995 presentation.
17
<PAGE>
SPEIZMAN INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 -- BUSINESS AND CREDIT RISK CONCENTRATION
The Company is engaged in the distribution of machinery for the textile
industry. With operations in the United States, Canada and the United Kingdom,
the Company primarily sells to customers located within the United States.
Export sales from the United States were approximately $8,547,000, $5,439,000
and $4,039,000 during fiscal 1995, 1994 and 1993, respectively. There were no
export sales by the Canadian operations. Sales of the Company's United Kingdom
subsidiary amounted to approximately $2,983,000, essentially all of which were
to customers in the United Kingdom.
Financial instruments which potentially subject the Company to credit risk
consist principally of temporary cash investments and trade receivables. The
Company places its temporary cash investments with high credit quality financial
institutions and, by policy, limits the amount of credit exposure to any one
financial institution.
The Company reviews a customer's credit history before extending credit. An
allowance for doubtful accounts is established based upon factors surrounding
the credit risk of specific customers, historical trends and other information.
To reduce credit risk the Company generally requires a down payment on large
equipment orders.
A substantial amount of the Company's revenues are generated from the sale of
sock knitting and other machines manufactured by Lonati, S.p.A. and one of its
wholly owned subsidiaries. In 1995, approximately 7% and 5% of revenues
consisted of sales to the Company's two largest customers. In 1994,
approximately 14% and 13% of revenues consisted of sales to the Company's two
largest customers. In 1993, approximately 13% and 11% of revenues consisted of
sales to the Company's two largest customers. Generally, the customers
contributing the most to the Company's net revenues vary from year to year.
NOTE 2 -- ACCOUNTS RECEIVABLE
Accounts receivable are summarized as follows:
<TABLE>
<CAPTION>
JULY 1, JULY 2,
1995 1994
<S> <C> <C>
Trade receivables $16,285,841 $15,239,891
Less allowance for doubtful accounts (207,158) (69,701)
<CAPTION>
<S> <C> <C>
Net accounts receivable $16,078,683 $15,170,190
</TABLE>
18
<PAGE>
NOTE 3 -- INVENTORIES
Inventories are summarized as follows:
<TABLE>
<CAPTION>
JULY 1, JULY 2,
1995 1994
<S> <C> <C>
Machines
New $ 4,786,811 $ 638,690
Used 5,319,489 3,579,346
Parts and supplies 3,321,714 3,078,800
Total $13,428,014 $7,296,836
</TABLE>
NOTE 4 -- LEASES
The Company conducts its operations from leased facilities which include both
offices and warehouses. Its primary operating facility is leased from a
partnership in which Mr. Robert S. Speizman, the Company's president, has a 50%
interest. Lease payments to the partnership approximated $204,000, $168,000, and
$135,000 in fiscal years 1995, 1994 and 1993, respectively.
The Company leases machinery and equipment, furniture and fixtures and
transportation equipment under noncancelable capital lease agreements which
expire at various dates through 1998.
Capitalized leases included in property and equipment are summarized as follows:
<TABLE>
<CAPTION>
JULY 1, JULY 2,
1995 1994
<S> <C> <C>
Machinery and Equipment $ -- $ 19,216
Furniture, fixtures and transportation equipment 145,006 360,756
145,006 379,972
Less accumulated amortization (100,440) (190,329)
Net leased property $ 44,566 $ 189,643
</TABLE>
19
<PAGE>
As of July 1, 1995, future net minimum lease payments under capital leases and
future minimum rental payments required under operating leases that have initial
or remaining noncancelable terms in excess of one year are as follows:
<TABLE>
<CAPTION>
CAPITAL OPERATING
LEASES LEASES
<S> <C> <C>
1996 $14,613 $436,942
1997 2,032 168,483
1998 2,181 65,474
1999 -- 25,854
2000 -- 17,139
Beyond -- 19,745
Total minimum lease payments 18,826 $733,637
Less amount representing interest (2,789)
Present value of net minimum lease payments $16,037
</TABLE>
Total rent expense for operating leases approximated $515,800, $311,600, and
$176,300 for fiscal years 1995, 1994 and 1993, respectively.
NOTE 5 -- TAXES ON INCOME
Provisions for federal and state income taxes in the consolidated statements of
income are made up of the following components:
<TABLE>
<CAPTION>
1995 1994 1993
<S> <C> <C> <C>
Current:
Federal $747,000 $1,556,000 $ 818,000
State 182,000 204,000 233,000
929,000 1,760,000 1,051,000
Deferred:
Federal $(54,000) $ 71,000 $ (310,000)
State (21,000) 38,000 (80,000)
(75,000) 109,000 (390,000)
Total taxes on income $854,000 $1,869,000 $ 661,000
</TABLE>
20
<PAGE>
Deferred tax benefits and liabilities are provided for the temporary differences
between the book and tax bases of assets and liabilities. Deferred tax assets
(liabilities) are reflected in the consolidated balance sheets as follows:
<TABLE>
<CAPTION>
JULY 1, JULY 2,
1995 1994
<S> <C> <C>
Net current assets $395,000 $296,000
Net noncurrent assets (liability) (39,000) (15,000)
$356,000 $281,000
</TABLE>
Principal items making up the deferred income tax (assets) liabilities are as
follows:
<TABLE>
<CAPTION>
YEAR ENDED
JULY 1, JULY 2,
1995 1994
<S> <C> <C>
Inventory valuation reserves $(225,000) $(230,000)
Depreciation 98,000 148,000
Deferred charges (54,000) (72,700)
Capitalized leases (5,000) (61,000)
Inventory capitalization (91,000) (39,000)
Accounts receivable reserves (78,000) (26,000)
Other (1,000) (300)
Net deferred tax asset $(356,000) $(281,000)
</TABLE>
The Company's effective income tax rates were different than the U.S. Federal
statutory tax rate for the following reasons:
<TABLE>
<CAPTION>
1995 1994 1993
<S> <C> <C> <C>
U.S. Federal statutory tax rate 34.0% 34.0% 34.0%
Net tax effect of prior year temporary difference for
which no deferred federal income tax benefits were
recorded -- -- (2.5 )
State income taxes, net of Federal income tax benefit 3.5 3.7 3.7
Utilization of net operating loss carryforward -- -- (8.7 )
Utilization of tax credits -- -- (5.5 )
Other 2.3 (1.5) 0.5
Effective tax rate 39.8% 36.2% 21.5%
</TABLE>
21
<PAGE>
Operating loss carryforwards utilized in 1993 reduced the Company's income tax
liability by approximately $267,000. In 1993, all remaining operating loss
carryforwards were utilized; thus, the income tax liability for 1994 was not
offset by carryforwards or credits.
NOTE 6 -- NOTES PAYABLE
The Company has a credit facility with NationsBank, expiring October 31, 1996.
This facility provides $14.0 million including up to a maximum of $2.0 million
for direct borrowings, with the balance available for the issuance of
documentary letters of credit. Amounts outstanding under the line of credit bear
interest at the greater of prime plus 1% or the Federal Funds Effective Rate
plus 1.5% for base rate loans and the 30, 60 or 90 day LIBOR rate plus 2.0% for
LIBOR loans. In connection with this line of credit, the Company granted a
security interest in accounts receivable and inventory, as defined in the loan
agreement. (See Note 13)
This credit facility contains certain covenants that require, among other
things, the Company to maintain levels of current assets to current liabilities,
total liabilities to net worth, working capital, tangible net worth of
$14,147,000 and certain fixed charge coverage. As of July 1, 1995, the Company
was in compliance with such covenants.
NOTE 7 -- LONG-TERM DEBT
Long-term debt consists of:
<TABLE>
<CAPTION>
JULY 1, 1995 JULY 2, 1994
TOTAL CURRENT TOTAL CURRENT
<S> <C> <C> <C> <C>
Capital lease obligations (Note 4) $ 16,037 $13,190 $ 163,995 $120,630
Other 130,782 -- 128,788 --
Total 146,819 $13,190 292,783 $120,630
Current maturities (13,190) (120,630)
$133,629 $ 172,153
</TABLE>
Annual maturities of long-term debt are 1996, $13,190; 1997, $1,078; 1998,
$1,769; 1999, $0; 2000, $0; thereafter, $130,782.
22
<PAGE>
NOTE 8 -- STOCK OPTIONS
The Company has reserved 125,000 and 250,000 shares of common stock under two
employee stock plans, adopted in 1981 and 1991, respectively. As of July 1,
1995, options to purchase 11,522 shares under the 1981 Plan and 138,907 shares
under the 1991 Plan were outstanding. Each option granted under the 1991 Plan or
the 1981 Plan becomes exercisable in cumulative increments of 20%, 50%, 80% and
100% on the first, second, third and fourth anniversaries of the date of grant,
respectively, and subject to certain exceptions with regard to termination of
employment and the percentage of outstanding shares of Common Stock owned, must
be exercised within 10 years from the date of the grant. The option price,
subject to certain exceptions, may not be less than 100% of the fair market
value per share of Common Stock on the date of the grant of the option or 110%
of such value for persons who control 10% or more of the voting power of the
Company's stock on the date of grant. A summary of option transactions and other
information for 1995, 1994 and 1993 follows:
<TABLE>
<CAPTION>
YEAR ENDED
JULY 1, JULY 2, JULY 3,
1995 1994 1993
<S> <C> <C> <C>
Shares under option, beginning of year 124,957 255,686 205,046
Options granted 29,722 -- 54,782
Options exercised (1,250) (130,729) (4,142)
Options expired (3,000) -- --
Shares under option, end of year 150,429 124,957 255,686
Options exercisable 78,521 16,464 91,607
Prices of options exercised $.75 to $ .75 to $.75 to
$ 1.875 $3.1625 $ 1.875
Prices of options outstanding, end of year $.75 to $ .75 to $.75 to
$ 5.50 $ 5.50 $ 5.50
</TABLE>
NOTE 9 -- STOCK REDEMPTION AGREEMENTS
The Company has an agreement with its principal holder whereby, upon his death,
the Company is obligated to redeem a portion of the stock in the Company held by
the estate. The redemption price for common stock is to be the fair market value
of common stock, less 5%, plus any accrued dividends. In no case will the
Company pay out more than the amount of life insurance proceeds received by the
Company as a result of the death of the stockholder.
At July 1, 1995, there were 584,932 common shares covered by the above
agreement. The face value of life insurance carried by the Company under this
agreement amounts to $1,150,000.
23
<PAGE>
NOTE 10 -- PREFERRED STOCK
During the fiscal year ended July 2, 1994, all of the Company's 5% Non-Voting
Preferred Stock was redeemed and all of the Company's 5% Non-Voting Senior
Convertible Preferred was converted into common stock.
The 5% Non-Voting Preferred Stock was non-cumulative as to dividends and
non-participating and, in the event of dissolution, was redeemable at $100 par
value per share together with unpaid dividends and accrued interest, in
preference to common stock distributions.
The 5% Non-Voting Senior Convertible Preferred Stock (the "Senior Preferred
Stock") was non-cumulative as to dividends and non-participating and was
redeemable at the option of the Company at $105 per share. In the event of
dissolution, the Senior Preferred Stock was redeemable at par and was superior
to the other series of preferred stock and to all common stock. The Senior
Preferred Stock was convertible at the option of the holder into shares of
common stock at a conversion price of $3.00 par value of the Senior Preferred
Stock for each share of common stock (240,766 common shares). As of July 3,
1993, the Senior Convertible Preferred Stock was stated at its fair value at the
time of issuance.
NOTE 11 -- DEFERRED COMPENSATION PLANS
The Company has deferred compensation agreements with two employees providing
for payments amounting to $2,056,680 upon retirement and from $1,546,740 to
$2,181,600 upon death prior to retirement. One agreement, as modified, has been
in effect since 1972 and the second agreement was effective October 1989. Both
agreements provide for monthly payments on retirement or death benefits over
fifteen year periods. Both agreements are funded under trust agreements whereby
the Company pays to the trust amounts necessary to pay premiums on life
insurance policies carried to meet the obligations under the deferred
compensation agreements.
Charges to operations applicable to those agreements were approximately $43,881,
$72,673 and $113,885 for the fiscal years 1995, 1994 and 1993, respectively.
NOTE 12 -- EMPLOYEES' RETIREMENT PLAN
The Company has a 401(k) retirement plan, effective October 1, 1989, for all
qualified employees of the Company to participate in the plan. Employees may
contribute a percentage of their pretax eligible compensation to the plan, and
the Company matches 25% of each employee's contribution up to 4% of pretax
eligible compensation. The Company's matching contributions totaled
approximately $17,000, $13,000 and $17,000 in fiscal years 1995, 1994 and 1993,
respectively.
24
<PAGE>
NOTE 13 -- COMMITMENTS AND CONTINGENCIES
The Company had outstanding commitments backed by letters of credit of
approximately $8,916,000 and $10,554,000 at July 1, 1995 and July 2, 1994,
respectively, relating to the purchase of machine inventory for delivery to
customers.
The Company has not obtained product liability insurance to date due to the
prohibitive cost of such insurance. The nature and extent of distributor
liability for product defects is uncertain. The Company has not engaged in
manufacturing activities since 1990, and management presently believes that
there is no material risk of loss to the Company from product liability claims
against the Company as a distributor.
NOTE 14 -- SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
YEAR ENDED
<CAPTION>
JULY 1, JULY 2, JULY 3,
1995 1994 1993
<S> <C> <C> <C> <C>
Cash paid during year for:
Interest $ 86,704 $ 135,068 $ 212,419
Income taxes 524,464 2,079,097 512,664
</TABLE>
Supplemental data of non-cash investing and financing activities:
The Company incurred capital lease obligations in connection with lease
agreements to acquire equipment of $4,304 and $238,238 during fiscal 1994 and
1993, respectively. No capital obligations were incurred in fiscal 1995.
25
<PAGE>
NOTES
26
<PAGE>
CORPORATE INFORMATION
OFFICERS
Robert S.Speizman
CHAIRMAN OF THE BOARD
AND PRESIDENT
Josef Sklut
VICE PRESIDENT-FINANCE
TREASURER AND SECRETARY
TRANSFER AGENT AND
REGISTRAR
First-Citizens Bank
& Trust Co.
Corporate Trust Dept.
P.O. Box 29522
Raleigh, N.C. 27626
DIRECTORS
Robert S. Speizman
CHAIRMAN OF THE BOARD
AND PRESIDENT
Steven P. Berkowitz
PRESIDENT, CENTER FOR
CONTEMPORARY ART, LTD.
William Gorelick
PRESIDENT, CAPITOL PREMIUM PLAN HOLDINGS, INC.
Scott C. Lea
PRIVATE INVESTOR
Josef Sklut
VICE PRESIDENT -- FINANCE
TREASURER AND SECRETARY
LOCATIONS
Speizman Industries, Inc.
Executive Offices:
508 W. Fifth Street
Charlotte, N.C. 28202
Speizman Industries, Inc.
59 Tec Street
Hicksville, N.Y. 11801
Speizman Canada, Inc.
5205 boul. Metropolitain est,
Suite 3
Montreal, Quebec H1R 1Z7
Canada
Speizman Industries
(Europe) Limited
Unit 3F, 77 Waterside Road,
Hamilton Industrial Park,
Leicester LE5 1TL, England
LISTING
Speizman Industries, Inc.
Common Stock is listed
on the NASDAQ National
Market System under the
symbol "SPZN."
GENERAL COUNSEL
Odom & Groves, P.C.
Charlotte, N.C.
INDEPENDENT CERTIFIED
PUBLIC ACCOUNTANTS
BDO Seidman, LLP
Charlotte, N.C.
FORM 10-K
Copies of the Company's Annual Report on Form 10-K for
the year ended July 1, 1995, may be obtained without charge by writing:
Mr. Josef Sklut
Speizman Industries, Inc.
P.O. Box 31215
Charlotte, N.C. 28231
27
<PAGE>
NOTES
28
