Page 1 of 27
Page 25 - Exhibit Index
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_____________
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from_____to_____
Commission file number 0-25734; 1-13684
DIMON INCORPORATED
(Exact name of registrant as specified in its charter)
VIRGINIA 54-1746567
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization)
Identification No.)
512 Bridge Street, Danville, Virginia 24541
(Address of principal executive offices) Zip Code)
Registrant's telephone number, including area code (804) 792-7511
Not Applicable
(Former name, former address and former fiscal
year, if changed since last report)
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 [ ]
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 of Common Stock November 4, 1996
NO par value 42,368,059
- -1-
<PAGE>
<TABLE>
<CAPTION>
DIMON INCORPORATED
INDEX
PAGE NO.
--------
<S> <C>
Part I. Financial Information:
Consolidated Balance Sheet - September 30, 1996
and June 30, 1996. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-4
Statement of Consolidated Income - Three Months
Ended September 30, 1996 and 1995. . . . . . . . . . . . . . . . . . . . . . 5
Statement of Consolidated Cash Flows - Three
Months Ended September 30, 1996 and 1995 . . . . . . . . . . . . . . . . . . 6
Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . . 7-20
Management's Discussion and Analysis
of Financial Condition and Results of Operations . . . . . . . . . . . . . 21-22
Part II. Other Information. . . . . . . . . . . . . . . . . . . . . . . . 23-24
</TABLE>
- -2-
<PAGE>
PART I. FINANCIAL INFORMATION
<TABLE>
<CAPTION>
DIMON Incorporated and Subsidiaries
CONSOLIDATED BALANCE SHEET
September 30
1996 June 30
(Unaudited) 1996
______________ __________
<S> <C> <C>
ASSETS Current assets
Cash and cash equivalents. . . . . . . . $ 84,780 $ 53,820
Notes receivable . . . . . . . . . . . . 1,188 1,127
Trade receivables, net of allowances . . 128,468 190,898
Inventories:
Tobacco . . . . . . . . . . . . . . . 665,909 315,476
Other . . . . . . . . . . . . . . . . 15,237 18,025
Advances on purchases of tobacco . . . . 83,450 74,709
Recoverable income taxes . . . . . . . . 1,510 1,563
Prepaid expenses and other assets. . . . 15,804 13,157
-------------- --------------
Total current assets . . . . 996,346 668,775
-------------- --------------
Investments and other assets
Equity in net assets of investee
companies. . . . . . . . . . . . . . . 10,222 8,268
Other investments. . . . . . . . . . . . 2,200 2,987
Notes receivable . . . . . . . . . . . . 4,562 4,078
Other. . . . . . . . . . . . . . . . . . 14,979 19,151
-------------- --------------
31,963 34,484
-------------- --------------
Intangible assets
Excess of cost over related net
assets of business acquired . . . . . 22,487 23,121
Production and supply contracts. . . . . 32,011 33,325
Pension asset. . . . . . . . . . . . . . 4,130 4,130
-------------- --------------
58,628 60,576
-------------- --------------
Property, plant and equipment
Land . . . . . . . . . . . . . . . . . . 19,267 19,223
Buildings. . . . . . . . . . . . . . . . 147,779 143,741
Machinery and equipment. . . . . . . . . 174,110 160,237
Allowances for depreciation. . . . . . . (106,719) (86,426)
-------------- --------------
234,437 236,775
-------------- --------------
Deferred taxes and other deferred charges. . 19,266 19,404
------------- --------------
$1,340,640 $1,020,014
============= =============
</TABLE>
- -3-
<PAGE>
<TABLE>
<CAPTION>
DIMON Incorporated and Subsidiaries
CONSOLIDATED BALANCE SHEET
September 30
1996 June 30
(Unaudited) 1996
(in thousands) ____________ ____________
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Notes payable to banks . . . . . . . . . $ 206,080 $ -
Accounts payable:
Trade . . . . . . . . . . . . . . . . 69,471 65,970
Officers and employees. . . . . . . . 20,711 24,074
Other . . . . . . . . . . . . . . . . 13,295 14,462
Advances from customers. . . . . . . . . 177,565 74,153
Accrued expenses . . . . . . . . . . . . 49,879 51,797
Income taxes . . . . . . . . . . . . . . 8,996 5,359
Long-term debt current . . . . . . . . . 10,255 10,618
-------------- -----------
Total current liabilities 556,252 246,433
-------------- -----------
Long-term debt
Revolving Credit Notes and Other . . . . 268,784 265,871
Senior Notes . . . . . . . . . . . . . . 125,000 125,000
--------------- -----------
393,784 390,871
--------------- -----------
Deferred credits:
Income taxes . . . . . . . . . . . . . . 22,149 21,496
Compensation and other benefits. . . . . 44,251 44,465
--------------- ------------
66,400 65,961
--------------- ------------
Minority interest in subsidiaries. . . . . . 902 901
--------------- ------------
Commitments and contingencies. . . . . . . . - -
--------------- ------------
Stockholders' equity
Preferred Stock--no par value:
Sept. 30 Jun. 30
Authorized shares. . 10,000 10,000
Issued shares. . . . - - - -
Common Stock--no par value:
Sept. 30 Jun. 30
Authorized shares . .125,000 125,000
Issued shares . . . . 42,368 42,366 136,992 136,959
Retained earnings. . . . . . . . . . . . 186,964 177,419
Equity-currency conversions. . . . . . . 718 2,842
Additional minimum pension liability . . (1,372) (1,372)
--------------- ------------
323,302 315,848
--------------- ------------
$1,340,640 $1,020,014
=============== ============
</TABLE>
- -4-
<PAGE>
[CAPTION]
<TABLE>
DIMON Incorporated and Subsidiaries
STATEMENT OF CONSOLIDATED INCOME
Three Months Ended September 30, 1996 and 1995
(Unaudited)
September 30 September 30
(in thousands, except per share amounts) 1996 1995
<S> <C> <C>
Sales and other operating revenues . . . . . $410,734 $339,692
Cost of goods and services sold. . . . . . . 345,685 284,888
---------- ----------
65,049 54,804
Selling, administrative and general expenses . . . . . 30,504 30,526
Restructuring and merger related costs . . . . . - 1,498
---------- ----------
Operating Income . . . . . . . . . . . . . . 34,545 22,780
Interest expense . . . . . . . . . . . . . . 9,897 13,014
---------- ----------
Income before income taxes, minority
interest and equity in net income (loss) of
investee companies . . . . . . . . . . . 24,648 9,766
Income taxes . . . . . . . . . . . . . . . . 9,859 3,711
---------- ----------
Income before minority interest and
equity in net income (loss) of investee
companies. . . . . . . . . . . . . . . . 14,789 6,055
Income (loss) applicable to minority interest . . (10) 4
Equity in net income (loss) of investee
companies, net of income taxes . . . . . 466 (23)
--------- ----------
NET INCOME . . . . . . . . . . . . . . . . . $ 15,265 $ 6,028
========= ==========
Earnings Per Share, primary
Net Income . . . . . . . . . . . . . . . . . $.36 $.16
=== ===
Earnings Per Share, assuming full dilution:
Net Income . . . . . . . . . . . . . . . . . $.36 $.16
=== ===
Average number of shares outstanding:
Primary. . . . . . . . . . . . . . . . . 42,532 38,174
Assuming full dilution . . . . . . . . . 42,540 42,351
Cash dividends per share . . . . . . . . . . $.135 $.135
====== ======
</TABLE>
- -5-
<PAGE>
<TABLE>
<CAPTION>
DIMON Incorporated and Subsidiaries
STATEMENT OF CONSOLIDATED CASH FLOWS
Three Months Ended September 30, 1996 and 1995
(Unaudited)
September 30 September 30
1996 1995
(in thousands) ____________ ____________
<S> <C> <C>
Operating activities
Net Income . . . . . . . . . . . . . . . . . . . . . $ 15,265 $ 6,028
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization . . . . . . . . . . 8,183 7,678
Deferred items. . . . . . . . . . . . . . . . . . 222 (1,319)
Gain on foreign currency transactions . . . . . . (119) (204)
Gain on disposition of fixed assets . . . . . . . (551) (137)
Undistributed (earnings) loss of investees. . . . (466) 23
Income (loss) applicable to minority interest . . (10) 4
Bad debt expense. . . . . . . . . . . . . . . . . 284 301
Decrease in accounts receivable . . . . . . . . . 65,272 52,579
Increase in inventories and advances on
purchases of tobacco. . . . . . . . . (356,871) (358,947)
Decrease (increase) in recoverable taxes. . . . . 41 (138)
Decrease (increase) in prepaid expenses . . . . . (2,635) 18,733
Increase (decrease) in accounts payable and
accrued expenses. . . . . . . . . . . . . . . . (2,856) 37,365
Increase in advances from customers . . . . . . . 104,009 134,128
Increase in income taxes. . . . . . . . . . . . . 3,666 1,764
Other . . . . . . . . . . . . . . . . . . . . . . 19 198
------------ -------------
Net cash used by operating activities . . . . . (166,547) (101,944)
------------ -------------
Investing activities
Purchase of property and equipment . . . . . . . . . (6,170) (7,023)
Proceeds from sale of property and equipment . . . . 804 531
Payments on notes receivable and
receivable from investees . . . . . . . 314 1,010
Advances for notes receivable. . . . . . . 0 (3,180)
Proceeds from or (advances for) other investments
and other assets. . . . . . . . . . . . (330) (1,662)
Purchase of subsidiary . . . . . . . . . . 0 (5,711)
------------ -------------
Net cash used by investing activities . . . . . (5,382) (16,035)
------------ -------------
Financing activities
Repayment of debt. . . . . . . . . . . . . (52,965) (90,133)
Proceeds from debt . . . . . . . . . . . . 261,746 230,130
Proceeds from sale of common stock . . . . . . . . . 33 1,950
Cash dividends paid to DIMON Incorporated
stockholders. . . . . . . . . . . . . . (5,719) (5,141)
------------ -------------
Net cash provided by financing activities . . . 203,095 136,806
------------ -------------
Effect of exchange rate changes on cash. . . . . . . . (206) (918)
------------ -------------
Increase in cash and cash equivalents. . . . . . . . . 30,960 17,909
Increase in cash from purchased subsidiary . . . . . . 0 495
Cash and cash equivalents at beginning of year . . . . 53,820 42,326
------------ -------------
Cash and cash equivalents at end of period. . . $ 84,780 $ 60,730
============ =============
</TABLE>
- -6-
<PAGE>
DIMON INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Primary earnings per share are computed by dividing earnings by the
weighted average number of shares outstanding plus any common stock
equivalents during each period. The fully diluted earnings per share
calculation assumes that all of the Convertible Subordinated Debentures
outstanding September 30, 1995, were converted into Common Stock at the
beginning of the reporting period thereby increasing the weighted average
number of shares considered outstanding during that period. Also, all
interest expense on the debentures for the period is added to pre-tax
income and the hypothetical additional income tax expense is deducted. The
weighted average number of shares outstanding is further increased by
common stock equivalents on employee stock options.
2. The accompanying unaudited consolidated financial statements have been
prepared in accordance with the instructions to Form 10-Q and do not
include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion of
management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included.
3. On April 1, 1995, Dibrell Brothers, Incorporated (Dibrell) and Monk-
Austin, Inc. (Monk-Austin) merged into DIMON Incorporated. In connection
with the merger, the Company incurred legal, accounting and financial
consultants costs of $8.1 million and commenced various activities to
restructure its worldwide operations. In June, 1995, the Company provided
a restructuring reserve of $17.9 million pre-tax related primarily to
eliminating duplicative facilities of tobacco operations and a reduction in
the number of employees. During the quarter ended September 30, 1995, an
additional $1.5 million, pre-tax, was provided for restructuring the
tobacco operations in Brazil for a reduction in the number of employees.
Other provisions subsequent to September 30, 1995 increased the 1996 fiscal
year restructuring provision to $15.4 million which was primarily for
additional severance costs. During the year ended June 30, 1996, the
Company severed a total of 367 employees in connection with restructuring.
The severed employees were primarily in the tobacco division and worked in
various departments throughout the Company. At June 30, 1996, the
remaining cash outlays associated with employee separations are expected to
total $15.2 million, of which $10.8 million will be expended in 1997.
Remaining amounts relate primarily to the pension plan charge and other
deferred compensation, which will be made as required for funding
appropriate pension and other payments in future years. No additional
restructuring charges are anticipated.
During the quarter ended September 30, 1996,the Company paid out $4.2
million, principally for employee separations.
4. On February 9, 1996, the Company called for redemption on March 11,
1996, all of the $54.3 million outstanding Convertible Subordinated
Debentures. As of March 4, 1996, holders of Debentures had converted
99.85% of the Debentures into 4,035,969 shares of the Company's common
stock. The remaining Debentures were redeemed on March 11, 1996, for
$89,188. The Company funded the redemption price for these Debentures from
working capital. Proforma primary earnings per share as if the conversion
had taken place at the beginning of the period would have been $.16 for the
three months ended September 30, 1995, equal to the fully diluted amounts
as disclosed in the statement of consolidated income.
- -7-
<PAGE>
DIMON INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
5. In the fourth quarter of fiscal 1996 the Company reclassified Other
income into Sales and other operating revenues. The Company also
reclassified Sundry deductions into Cost of goods sold. Both Other income
and Sundry deductions are not material and the reclassification does not
affect Net income. Prior year accounts have been reclassified for
conformity within the financial statements.
6. The results of operations for the three months ended September 30, 1996
and 1995 are not necessarily indicative of the results to be expected for
the full year and should not be relied on as a basis for projecting year
end results. The Company's operations are seasonal and quarterly
comparisons are of little value. For additional information regarding
accounting principles and other financial data, see Notes to Consolidated
Financial Statements in the Annual Report on Form 10-K for the fiscal year
ended June 30, 1996.
7. On May 29, 1996, the Company issued $125 million in 8 7/8% Senior Notes
(the "Notes") due 2006. The notes are general unsecured obligations of the
Company and rank equally in right of payment with all other unsubordinated
indebtedness. DIMON International, Inc. and Florimex Worldwide, Inc.
(collectively, the "Guarantors"), wholly owned subsidiaries of the Company,
have fully and unconditionally guaranteed on a joint and several basis the
Company's obligations to pay principal, premium and interest relative to
the Notes. Management has determined that separate, full financial
statements of the Guarantors would not be material to investors and such
financial statements are not provided. Supplemental combining financial
information of the Guarantors is presented below:
- -8-
<PAGE>
<TABLE>
<CAPTION>
DIMON Incorporated and Subsidiaries
Supplemental Combining Balance Sheet
September 30, 1996
(Unaudited)
(in thousands) DIMON Non-
Incorporated Guarantors Guarantors Eliminations Total
<S> <C> <C> <C> <C> <C>
Assets
Current assets
Cash and cash equivalents $ (689) $ 5,750 $ 79,714 $ 5 a $ 84,780
Notes receivable - 421 19,629 (18,862)b 1,188
Trade receivables, net of
allowances 31,750 67,104 165,806 (136,192)b 128,468
Inventories:
Tobacco - 349,147 316,762 - 665,909
Other 51 1,688 13,498 - 15,237
Advances on purchases of
tobacco 283,181 119,791 46,102 (365,624)b 83,450
Recoverable income taxes - - 1,510 - 1,510
Prepaid expenses and
other assets 3,376 4,253 8,175 - 15,804
------------ ------------ ------------ ------------- --------------
Total current assets 317,669 548,154 651,196 (520,673) 996,346
------------- ------------ ------------ -------------- ---------------
Investments and other assets
Equity in net assets of
investee companies - 7,312 2,910 - 10,222
Consolidated subsidiaries 327,072 354,475 26,044 (707,591)b 0
Other investments 1 2,075 5,131 (5,007)b 2,200
Notes receivable - 908 3,654 - 4,562
Other 139 3,930 10,910 - 14,979
------------ ------------- ------------- ------------- ---------------
327,212 368,700 48,649 (712,598) 31,963
------------- -------------- ------------- ------------- ---------------
Intangible assets
Excess of cost over related
net assets of business
acquired 373 8,013 14,101 - 22,487
Production and supply contracts - 24,681 7,330 - 32,011
Pension asset 3,042 1,088 - - 4,130
------------ ------------ -------------- ------------- -------------
3,415 33,782 21,431 - 58,628
------------ ------------- -------------- ------------- --------------
Property, plant and equipment
Land 1,771 1,914 15,582 - 19,267
Buildings 4,751 25,600 117,428 - 147,779
Machinery and equipment 5,113 51,464 117,533 - 174,110
Allowances for depreciation (5,007) (28,714) (72,998) - (106,719)
------------ ------------ ------------- -------------- ---------------
6,628 50,264 177,545 - 234,437
------------ ------------ ------------- -------------- ---------------
Deferred taxes and other
deferred charges 19,130 - 136 - 19,266
------------ ------------ ------------- -------------- ---------------
Total assets $674,054 $1,000,900 $898,957 $(1,233,271) $1,340,640
============ ============ ============= ============== ===============
a. To adjust for cash transfers made by DIMON Incorporated to an entity
which reports on an earlier period.
b. Inter-company eliminations.
- -9-
<PAGE>
</TABLE>
<TABLE>
<CAPTION>
DIMON Incorporated and Subsidiaries
Supplemental Combining Balance Sheet
September 30, 1996
(Unaudited)
(in thousands) DIMON
Incorporated Guarantors Non-Guarantors Eliminations Total
Current Liabilities
<S> <C> <C> <C> <C> <C>
Notes payable to banks $ - $ 11,325 $215,452 $ (20,697)b $ 206,080
Accounts payable:
Trade 242 435,756 50,265 (416,792)b 69,471
Officers and employees 13,917 932 5,862 - 20,711
Other 4,502 1,231 8,169 (607)b 13,295
Advances from customers 36 164,328 93,803 (80,602)b 177,565
Accrued expenses 4,978 13,329 31,659 (87)b 49,879
Income taxes (14,670)c 3,286 20,660 (280)b 8,996
Long-term debt current 4,285 350 5,620 - 10,255
-------------- -------------- ------------- ---------------- ---------------
Total current liabilities 13,290 630,537 431,490 (519,065) 556,252
-------------- -------------- ------------- ---------------- ---------------
Long-term debt
Revolving Credit
Notes and Other 178,663 782 90,793 (1,454)b 268,784
Senior Notes 125,000 - - - 125,000
-------------- --------------- ------------- ---------------- ---------------
303,663 782 90,793 (1,454) 393,784
-------------- --------------- ------------- ---------------- ---------------
Deferred Credits
Income taxes 6,198 (6,571) 22,522 - 22,149
Compensation and
other benefits 27,601 8,705 7,945 - 44,251
------------- --------------- ------------- ---------------- ---------------
33,799 2,134 30,467 - 66,400
-------------- --------------- ------------- ---------------- ---------------
Minority interest
in subsidiaries - - 902 - 902
-------------- --------------- ------------- ---------------- ---------------
Stockholders' equity
Common stock 136,992 143,026 180,366 (323,392)b 136,992
Retained earnings 186,964 221,578 164,207 (385,785)b 186,964
Equity-currency conversions 718 2,843 732 (3,575)b 718
Additional minimum
pension liability (1,372) - - - (1,372)
Unrealized gain
on investments - - - - -
-------------- --------------- ------------- ---------------- --------------
323,302 367,447 345,305 (712,752) 323,302
-------------- --------------- ------------- ---------------- --------------
Total liabilities
and equity $674,054 $1,000,900 $898,957 $(1,233,271) $1,340,640
============== =============== ============== ================ ==============
</TABLE>
b. Inter-company eliminations.
c. Current deferred tax on reserves for restructuring and unallocated,
estimated tax payments.
- -10-
<PAGE>
<TABLE>
<CAPTION>
DIMON Incorporated and Subsidiaries
Supplemental Combining Statement of Income
Three Months Ended September 30, 1996
(Unaudited)
(in thousands) DIMON
Incorporated Guarantors Non-Guarantors Eliminations Total
<S> <C> <C> <C> <C> <C>
Sales and other operating
revenues $ 3,385 $220,086 $264,133 $(76,870)a,b $410,734
Cost of goods and
services sold 47 203,745 210,835 (68,942)a 345,685
------------- ------------- ------------- --------------- -------------
3,338 16,341 53,298 (7,928) 65,049
Selling, administrative
and general expenses 3,250 12,968 17,121 (2,835)a,b 30,504
------------ ------------- ------------ --------------- -------------
Operating income 88 3,373 36,177 (5,093) 34,545
------------ ------------- ------------ --------------- --------------
Interest Expense 3,972 3,862 7,156 (5,093)a 9,897
------------ ------------- ------------ --------------- -------------
Income (loss) before income
taxes, minority interest
and equity in net income
of investee companies (3,884) (489) 29,021 - 24,648
Income taxes (benefit) (1,553) (196) 11,608 - 9,859
------------- ------------- ------------- --------------- ------------
Income (loss) before minority
interest, equity in net
income of investee
companies (2,331) (293) 17,413 - 14,789
Loss applicable to
minority interest - - (10) - (10)
Equity in net income of
investee companies, net
of income taxes - 80 386 - 466
Equity in net income of
subsidiaries 17,596 17,809 - (35,405)a -
------------ ------------ ------------ --------------- ------------
NET INCOME $15,265 $17,596 $ 17,809 $(35,405) $ 15,265
============ ============ ============= =============== ============
</TABLE>
a. Inter-company eliminations.
b. Royalty expense in SG&A and Royalty income in Other Income for
Consolidated Entities.
- -11-
<PAGE>
<TABLE>
<CAPTION>
DIMON Incorporated and Subsidiaries
Supplemental Combining Statement of Cash Flows
Three Months Ended September 30, 1996
(Unaudited)
(in thousands) DIMON
Incorporated Guarantors Non-Guarantors Eliminations Total
<S> <C> <C> <C> <C> <C>
Operating activities
Net Income $15,265 $17,596 $17,809 $(35,405)a $15,265
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 645 2,905 4,633 - 8,183
Deferred items (153) (236) 611 - 222
Gain on foreign currency transactions - (26) (93) - (119)
Loss (gain) on disposition of fixed assets 44 (115) (480) - (551)
Undistributed earnings of
investees/subsidiaries (17,596) (17,889) (386) 35,405 a (466)
Loss applicable to minority interest - - (10) - (10)
Bad debt expense - - 284 - 284
Decrease (increase) in accounts
receivable (4,988) 111,310 (363) (40,687)a 65,272
Increase in inventories and
advances on purchases of tobacco (114,568) (386,609) (49,639) 193,945 a (356,871)
Decrease in recoverable taxes - - 41 - 41
Decrease (increase) in prepaid
expenses 815 (3,259) (191) - (2,635)
Increase (decrease) in accounts payable
and accrued expenses 623 163,109 (41,758) (124,830)a (2,856)
Increase (decrease) in advances from
customers (3,345) 114,600 21,371 (28,617)a 104,009
Increase (decrease) in income taxes (2,181) 204 5,643 - 3,666
Other - 1 18 - 19
-------------- -------------- ------------ ------------- --------------
Net cash provided (used) by
operating activities (125,439) 1,591 (42,510) (189) (166,547)
-------------- -------------- ------------ ------------- --------------
Investing activities
Purchase of property and equipment (96) (2,208) (3,866) - (6,170)
Proceeds from sale of property and
equipment 4 132 668 - 804
Payments on notes receivable and
receivable from investees - 127 20 167 a 314
Proceeds from or (advances) for other
investments and other assets - (500) 170 - (330)
-------------- -------------- ------------ ------------- --------------
Net cash provided (used) by investing
activities (92) (2,449) (3,008) 167 (5,382)
-------------- -------------- ------------ ------------- --------------
</TABLE>
a. Inter-company eliminations
- -12-
<PAGE>
<TABLE>
<CAPTION>
DIMON Incorporated and Subsidiaries
Supplemental Combining Statement of Cash Flows (Continued)
Three Months Ended September 30, 1996
(Unaudited)
(in thousands) DIMON
Incorporated Guarantors Non-Guarantors Eliminations Total
<S> <C> <C> <C> <C> <C>
Financing activities
Repayment of debt $ (6,286) $ (286) $(46,393) $ - $(52,965)
Proceeds from debt 136,091 - 125,711 (56)a 261,746
Cash dividends paid to DIMON Incorporated
stockholders (5,719) - - - (5,719)
Proceeds from sale of common stock 33 - - - 33
-------------- -------------- ------------ ------------- --------------
Net cash provided (used) by financing
activities 124,119 (286) 79,318 (56) 203,095
-------------- -------------- ------------ ------------- --------------
Effect of exchange rate changes on cash - - (206) - (206)
-------------- -------------- ------------ ------------- --------------
Increase (decrease) in cash and cash
equivalents (1,412) (1,144) 33,594 (78)a 30,960
Cash and cash equivalents at beginning of
year 723 6,894 46,120 83 a 53,820
-------------- -------------- ------------ ------------- --------------
Cash and cash equivalents at end of
period $ (689) $ 5,750 $79,714 $ 5 $84,780
============== ============== ============ ============= ==============
</TABLE>
a. Inter-company eliminations
- -13-
<PAGE>
<TABLE>
<CAPTION>
DIMON Incorporated and Subsidiaries
Supplemental Combining Balance Sheet
June 30, 1996
(in thousands) DIMON
Incorporated Guarantors Non-Guarantors Eliminations Total
<S> <C> <C> <C> <C> <C>
Assets
Current assets
Cash and cash equivalents $ 723 $ 6,894 $ 46,120 $ 83 a $ 53,820
Notes receivable - 475 19,347 (18,695)b 1,127
Trade receivables, net of allowances 26,762 178,390 162,624 (176,878)b 190,898
Inventories:
Tobacco - 54,729 260,747 - 315,476
Other 49 1,174 16,802 - 18,025
Advances on purchases of tobacco 168,616 28,113 49,659 (171,679)b 74,709
Recoverable income taxes - - 1,563 - 1,563
Prepaid expenses and other assets 4,190 979 7,988 - 13,157
-------------- ------------- ------------- ----------------- ---------------
Total current assets 200,340 270,754 564,850 (367,169) 668,775
-------------- ------------- ------------- ----------------- ---------------
Investments and other assets
Equity in net assets of investee
companies - 5,884 2,384 - 8,268
Consolidated subsidiaries 288,533 336,667 21,230 (646,430)b -
Other investments 23,067 2,861 9,337 (32,278)b 2,987
Notes receivable 139 3,965 (26) - 4,078
Other - 981 18,170 - 19,151
-------------- ------------- ------------- ----------------- ---------------
311,739 350,358 51,095 (678,708) 34,484
-------------- ------------- ------------- ----------------- ---------------
Intangible assets
Excess of cost over related net assets
of business acquired 375 8,281 14,465 - 23,121
Production and supply contracts - 25,960 7,365 - 33,325
Pension asset 3,042 1,088 - - 4,130
-------------- ------------- ------------- ----------------- ---------------
3,417 35,329 21,830 - 60,576
-------------- ------------- ------------- ----------------- ---------------
Property, plant and equipment
Land 1,770 1,925 15,528 - 19,223
Buildings 4,739 25,568 113,434 - 143,741
Machinery and equipment 5,271 48,858 106,108 - 160,237
Allowances for depreciation (4,883) (26,877) (54,666) - (86,426)
-------------- ------------- ------------- ----------------- ---------------
6,897 49,474 180,404 - 236,775
-------------- ------------- ------------- ----------------- ---------------
Deferred taxes and other deferred charges 19,259 - 145 - 19,404
-------------- ------------- ------------- ----------------- ---------------
Total assets $541,652 $705,915 $818,324 $(1,045,877) $1,020,014
============== ============= ============= ================ ===============
</TABLE>
a. To adjust for cash transfers made by DIMON Incorporated to an entity
which reports on an earlier period.
b. Inter-company eliminations.
- -14-
<PAGE>
<TABLE>
<CAPTION>
DIMON Incorporated and Subsidiaries
Supplemental Combining Balance Sheet
June 30, 1996
(in thousands) DIMON
Incorporated Guarantors Non-Guarantors Eliminations Total
<S> <C> <C> <C> <C> <C>
Current Liabilities
Notes payable to banks $ - $ - $ - $ - $ -
Accounts payable:
Trade 1,423 281,706 86,216 (303,375)b 65,970
Officers and employees 14,427 2,263 7,384 - 24,074
Other 4,749 1,554 8,159 - 14,462
Advances from customers 3,380 49,729 73,029 (51,985)b 74,153
Accrued expenses 2,418 13,941 35,438 - 51,797
Income taxes (12,489)c 3,083 15,042 (277)b 5,359
Long-term debt current 4,286 350 5,982 - 10,618
-------------- ------------- ------------- --------------- ---------------
Total current liabilities 18,194 352,626 231,250 (355,637) 246,433
-------------- ------------- ------------- --------------- ---------------
Long-term debt
Revolving Credit Notes and Other 48,856 1,068 226,717 (10,770)b 265,871
Senior Notes 125,000 - - - 125,000
-------------- ------------- ------------- --------------- ---------------
173,856 1,068 226,717 (10,770) 390,871
-------------- ------------- ------------- --------------- ---------------
Deferred Credits
Income taxes 6,198 (6,259) 21,557 - 21,496
Compensation and other benefits 27,556 8,629 8,280 - 44,465
-------------- ------------- ------------- --------------- ---------------
33,754 2,370 29,837 - 65,961
-------------- ------------- ------------- --------------- ---------------
Minority interest in subsidiaries - - 901 - 901
-------------- ------------- ------------- --------------- ---------------
Stockholders' equity
Common stock 136,959 143,026 180,366 (323,392)b 136,959
Retained earnings 177,419 203,982 146,398 (350,380)b 177,419
Equity-currency conversions 2,842 2,843 2,855 (5,698)b 2,842
Additional minimum pension liability (1,372) - - - (1,372)
Unrealized gain on investments - - - - -
-------------- ------------- ------------- --------------- ---------------
315,848 349,851 329,619 (679,470) 315,848
-------------- ------------- ------------- --------------- ---------------
Total liabilities and equity $541,652 $705,915 $818,324 $(1,045,877) $1,020,014
============== ============= ============= =============== ===============
</TABLE>
b. Inter-company eliminations.
c. Current deferred tax on reserves for restructuring and unallocated,
estimated tax payments.
- -15-
<PAGE>
<TABLE>
<CAPTION>
DIMON Incorporated and Subsidiaries
Supplemental Combining Statement of Income
Three Months Ended September 30, 1995
(Unaudited)
(in thousands) DIMON
Incorporated Guarantors Non-Guarantors Eliminations Total
<S> <C> <C> <C> <C> <C>
Sales of other operating revenues $6,846 $217,916 $212,952 $(98,022)a,b $ 339,692
Cost of goods and services sold (2,269)c 200,521 173,124 (86,488)a 284,888
------------ ------------ ------------ ---------------- -------------
9,115 17,395 39,828 (11,534) 54,804
Selling, administrative and general expenses 3,306 11,912 18,105 (2,797)a,b 30,526
Restructuring and merger related costs - - 1,498 - 1,498
------------ ------------ ------------ ---------------- -------------
Operating income 5,809 5,483 20,225 (8,737) 22,780
------------ ------------ ------------ ---------------- -------------
Interest expense 6,639 7,330 7,782 (8,737)a 13,014
------------ ------------ ------------ ---------------- -------------
Income (loss) before income taxes,
minority interest and equity in net
income (loss) of investee companies (830) (1,847) 12,443 - 9,766
Income taxes (benefit) (316) (701) 4,728 - 3,711
------------ ------------ ------------ ---------------- -------------
Income (loss) before minority interest
and equity in net income (loss) of
investee companies (514) (1,146) 7,715 - 6,055
Income applicable to minority interest - - 4 - 4
Equity in net income (loss) of investee
companies, net of income taxes - 114 (137) - (23)
Equity in net income of subsidiaries 6,542 7,574 - (14,116)a -
------------ ------------ ------------ ---------------- -------------
NET INCOME $6,028 $ 6,542 $ 7,574 $(14,116) $ 6,028
============ ============ ============= =============== =============
</TABLE>
a. Inter-company eliminations.
b. Royalty expense in SG&A and Royalty income in Other Income for
Consolidated Entities.
c. Change in reserves for inter-company profit in ending inventory.
- -16-
<PAGE>
<TABLE>
<CAPTION>
DIMON Incorporated and Subsidiaries
Supplemental Combining Statement of Cash Flows
Three Months Ended September 30, 1995
(Unaudited)
(in thousands) DIMON
Incorporated Guarantors Non-Guarantors Eliminations Total
<S> <C> <C> <C> <C> <C>
Operating activities
Net Income $ 6,028 $ 6,542 $ 7,574 $ (14,116)a $ 6,028
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 525 2,609 4,544 - 7,678
Deferred items 959 90 (2,368) - (1,319)
Gain on foreign currency transactions - (30) (174) - (204)
Gain on disposition of fixed assets (14) (16) (107) - (137)
Undistributed earnings of
investees/subsidiaries (6,542) (7,688) 137 14,116 a 23
Income applicable to minority interest - - 4 - 4
Bad debt expense - - 301 - 301
Decrease (increase) in accounts
receivable (6,509) (3,913) (123,769) 186,770 a 52,579
Decrease (increase) in inventories and
advances on purchases of tobacco (82,542) (23,958) (301,482) 49,035 a (358,947)
Decrease in recoverable taxes - - (138) - (138)
Decrease (increase) in prepaid
expenses 9,415 (131) 9,449 - 18,733
Increase (decrease) in accounts payable
and accrued expenses (5,025) 373,457 67,003 (398,070)a 37,365
Increase (decrease) in advances from
customers 36 (337,481) 301,346 170,227 a 134,128
Increase (decrease) in income taxes (1,153) 695 2,488 (266)a 1,764
Other - (790) 988 - 198
--------- ----------- --------- --------- -----------
Net cash provided (used) by
operating activities (84,822) 9,386 (34,204) 7,696 (101,944)
---------- ----------- ---------- --------- -----------
Investing activities
Purchase of property and equipment (51) (2,028) (4,944) - (7,023)
Proceeds from sale of property and
equipment 14 39 478 - 531
Payments on notes receivable and
receivable from investees 26 3 981 - 1,010
Issuance of notes receivable (83) (2,382) (715) - (3,180)
Advances for other investments
and other assets 5,120 (5,776) 6,949 (7,955)a (1,662)
Purchase of subsidiary - (5,711) - - (5,711)
---------- ----------- ---------- --------- -----------
Net cash provided (used) by investing
activities 5,026 (15,855) 2,749 (7,955) (16,035)
---------- ----------- ---------- --------- -----------
</TABLE>
a. Inter-company eliminations
- -17-
<PAGE>
<TABLE>
<CAPTION>
DIMON Incorporated and Subsidiaries
Supplemental Combining Statement of Cash Flows (Continued)
Three Months Ended September 30, 1995
(Unaudited)
(in thousands) DIMON
Incorporated Guarantors Non-Guarantors Eliminations Total
<S> <C> <C> <C> <C> <C>
Financing activities
Repayment of debt $(57,129) $ (571) $(32,433) $ - $(90,133)
Proceeds from debt 142,343 - 87,787 - 230,130
Proceeds from sale of common stock 1,950 - - - 1,950
Cash dividends paid to DIMON Incorporated
stockholders (5,141) 5,600 (5,600) - (5,141)
----------- ---------- ---------- ----------- ----------
Net cash provided (used) by financing
activities 82,023 5,029 49,754 - 136,806
---------- ----------- ---------- ----------- -----------
Effect of exchange rate changes on cash - - (918) - (918)
----------- ----------- ---------- ----------- -----------
Increase (decrease) in cash and cash
equivalents 2,227 (1,440) 17,381 (259)a 17,909
Increase(decrease) in cash from purchased
subsidiary - 495 - - 495
Cash and cash equivalents at beginning of
year 1,328 1,879 12,254 26,865 a 42,326
------------ ------------ ------------ ------------- ------------
Cash and cash equivalents at end of
period $ 3,555 $ 934 $ 29,635 $26,606 $ 60,730
============ ============ ============ ============= ============
</TABLE>
a. Inter-company eliminations
- -18-
<PAGE>
DIMON INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS (Continued)
10. a. Each of the Guarantors, the Company's wholly-owned subsidiaries,
DIMON International, Inc. and Florimex Worldwide Inc., have fully
and unconditionally guaranteed on a joint and several basis the
performance and punctual payment when due, whether at stated
maturity, by acceleration or otherwise, of all of the Company's
obligations under the Notes and the related indenture, including
its obligations to pay principal, premium, if any, and interest
with respect to the Notes. The obligations of each Guarantor
are limited to the maximum amount which, after giving effect to
all other contingent and fixed liabilities of such Guarantor and
after giving effect to any collections from or payments made by
or on behalf of any other Guarantor in respect of the
obligations of such other Guarantor under its Guarantee or
pursuant to its contribution obligations under the Indenture,
can be guaranteed by the relevant Guarantor without resulting
in the obligations of such Guarantor under its Guarantee
constituting a fraudulent conveyance or fraudulent transfer
under applicable federal or state law. Each of the Guarantees
are a guarantee of payment and not collection. Each Guarantor
that makes a payment or distribution under a Guarantee shall
be entitled to a contribution from each other Guarantor in an
amount pro rata, based on the assets less liabilities of each
Guarantor determined in accordance with generally accepted
accounting principles (GAAP). The Company is not restricted
from selling or otherwise disposing of any of the Guarantors
other than DIMON International, Inc. provided that the proceeds
of any such sale are applied as required by the Indenture.
Florimex Worldwide, Inc. is the primary holding and operating
company in the U.S. and represents the lead company for the
flowers segment. The cut flowers operations consist of buying
flowers from sources throughout the world and transporting
them, normally by air, to operating units for resale to
wholesalers and retailers.
DIMON International, Inc. is the primary holding and operating
company in the U.S. and represents the lead company in the
Tobacco division whose operations consist primarily of
selecting, buying, processing, packing, shipping, storage and
financing tobacco.
b. DIMON Incorporated and each of the Guarantors has accounted
for their respective subsidiaries on the equity basis.
c. Certain reclassifications were made to conform all of the
financial information to the financial presentation on a
consolidated basis. The principal eliminating entries
eliminate investments in subsidiaries and intercompany balances.
d. Included in the above balance sheets are certain related party
balances among borrower, the guarantors and non-guarantors.
Due to the Company's world-wide operations, related party
activity is included in most balance sheet accounts. The
tables below set forth the significant intercompany balances
for each of the periods presented.
- -19-
<PAGE>
DIMON INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
SEPTEMBER 30, 1996
DEBIT(CREDIT)
DIMON Non-
Incorporated Guarantors Guarantors
Accounts Receivable $ 31,690 $ 17,830 $ 88,251
Advances on Purchases 283,181 108,028 11,400
Accounts Payable Trade (15) (413,403) (12,559)
Advances from Customers (35) (1,985) (78,619)
JUNE 30, 1996
DEBIT(CREDIT)
DIMON Non-
Incorporated Guarantors Guarantors
Accounts Receivable $ 26,761 $ 120,661 $ 54,267
Advances on Purchases 168,616 16,886 18,963
Accounts Payable Trade (70) (272,781) (40,033)
Advances from Customers (3,380) (37) (52,256)
- -20-
<PAGE>
Management's Discussion and Analysis of
Financial Condition and Results of Operations
(in thousands)
Three Months Ended September 30, 1996 Compared to Three Months Ended
September 30, 1995:
The Company's sales and other operating revenues increased $71,042 (20.9%)
for the three months ended September 30, 1996 from the same period in 1995.
Tobacco sales increased $61,676 (23.2%) primarily due to higher average
prices of foreign tobaccos sold and increased quantities of U.S. and
foreign grown tobacco. Increases in quantities of U.S. tobaccos sold were
partially offset by a decrease in average prices. Increased quantities of
U.S. and foreign tobacco benefited from earlier timing of shipments.
Increased higher average prices and increased quantities of foreign tobacco
accounted for $44,155 and $13,515, respectively of the increase, while
increased quantities of U.S. tobacco accounted for $23,674 of the increase
offset by the impact of decreased average prices of $15,408. The balance
was due to decreased revenues from services. Foreign tobacco sales
increased primarily in Africa and Asia. Flower sales increased $9,366
(12.7%) due primarily to increases from operations in Europe and Japan.
Cost of sales and expenses for the period ended September 30, 1996, were
$376,189, an increase of 19.3% from $315,414, before the $1,498 change for
restructuring costs, for the three months ended September 30, 1995. Cost of
sales and expenses of the tobacco operations increased $52,627 to $289,818
primarily due to higher sales of tobacco in the period. Gross profit for
the tobacco operations increased $9,073 (19.0%) for the three months ended
September 30, 1996 over the corresponding period in 1995 primarily due to
increased sales and gross margins on tobacco from Africa and South America.
The gross margin percentage for the tobacco operations decreased from 18.0%
to 17.3%.
Cost of sales and expenses for the Company's flower segment increased
$8,087 (10.8%) to $83,121 for the three month period ended September 30,
1996 over the corresponding period in 1995 due primarily to the sales
increases in operations in Europe and Japan. The gross margin for flower
operations increased $1,170 (16.7%) and the gross margin percentage for the
flower operations increased from 9.5% to 9.9% both due to increased margins
in the operations of Europe, Japan and Baardse.
Corporate expenses increased $61 to $3,250 in 1996 from $3,189 in 1995 due
to increased accruals for employee incentive programs offset partially by
decreased salaries.
Interest expense decreased $3,117 (24%) for the quarter ended September 30,
1996 primarily due to lower average borrowings.
The effective income tax rate increased from 38% in fiscal year 1996 to 40%
in fiscal year 1997, based on estimates of taxable income projected each
year.
Equity in net income of the tobacco investee companies increased $489 from
the same period last year. The increase is due to increased income on
operations in Greece.
- -21-
<PAGE>
Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
FINANCIAL CONDITION:
The purchasing and processing activities of the Company's tobacco business
are seasonal. The Company's need for capital fluctuates accordingly and,
at any of several seasonal peaks, the Company's outstanding indebtedness
may be significantly greater or lesser than at year end. The Company
historically has needed capital in excess of cash flow from operations to
finance inventory and accounts receivable and, more recently, to finance
acquisitions of foreign tobacco operations and flower operations. The
Company also prefinances tobacco crops in certain foreign countries by
making cash advances to farmers prior to and during the growing season.
DIMON's working capital increased from $422,342 at June 30, 1996 to
$440,094 at September 30, 1996. The current ratio of 2.7 to 1 at June 30,
1996 decreased to 1.8 to 1 at September 30, 1996. At September 30, 1996,
current assets increased $327,571 (49%) and current liabilities increased
$309,819 (125.7%) from June 30, 1996, reflecting the seasonal increase in
the tobacco operations. Current assets increased primarily due to an
increase in tobacco inventories of $350,433, partially offset by a decrease
in trade receivables of $62,430. Current liabilities increased primarily
due to increases in Notes payable to banks of $206,080 and Advances from
customers of $103,412.
Cash flows used in operating activities increased $64,603 (63.4%) to
$166,547 for the three months ended September 30, 1996 over the same period
last year, due primarily to a decrease in accounts payable and accrued
expenses and a decrease in advances from customers. Cash flows used in
investing activities decreased $10,653 (66.4%) reflecting the 1995 purchase
of a subsidiary and advances for notes receivable. Cash flows provided by
financing activities increased $66,289 (48.4%) to $203,095 primarily due to
net increased borrowings.
At September 30, 1996, DIMON had seasonally adjusted lines of credit of
$996 million, excluding the long-term credit agreements. These lines bear
interest at rates ranging from 5.25% to 10.75%. At September 30, 1996,
unused lines of credit amounted to $405 million net of $145 million of
letters of credit and guarantees that reduce lines of credit. Total
maximum outstanding borrowings during the three months ended September 30,
1996 were $496 million.
To ensure long-term liquidity, the Company entered into the $240 million
New Credit Facility effective March 15, 1996. The New Credit Facility
replaced the Company's $250 million Former Credit Facility. The Company
used the Former Credit Facility to reclassify $250 million of short-term
debt to long-term debt and did not borrow under it. The Company similarly
uses the New Credit Facility to reclassify $240 million of its short-term
debt. The interest rates available under the New Credit Facility depend on
the type of advance selected and are based either on the agent bank's base
lending rate (which was 8.25% at September 30, 1996, and is adjusted with
changes in interest rates generally) or LIBOR plus 0.75%, through March 15,
1997, and thereafter plus a spread of 0.45% to 1.25% based on the ratings
assigned to the Company's outstanding senior debt or on its consolidated
interest coverage ratio. The New Credit Facility is subject to certain
commitment fees and covenants that among other things require the Company
to maintain minimum working capital and tangible net worth amounts, require
specific liquidity and long-term solvency ratios and restrict acquisitions
and, under certain circumstances, payment of dividends by the Company. The
New Credit Facility terminates on March 15, 1998, but may be extended
thereafter, year to year, upon approval of the Lenders. As of September
30, 1996, there were no borrowings outstanding under the New Credit
Facility.
The company has historically financed its operations through a combination
of short-term lines of credit, customer advances, cash from operations and
equity and equity-linked securities. At September 30, 1996, the Company
had no material capital expenditure commitments. The Company believes that
these sources of funds combined with the Senior Notes are sufficient to
fund the Company's purchasing and capital needs for fiscal 1997.
- -22-
<PAGE>
Management's Discussion and Analysis of Financial Condition and
Results of Operations (Continued)
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits 11 - Computation of Earnings Per Common Share
27 - Financial Data Schedule
(b) Reports on Form 8-K - None
- -23-
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this amendment to be signed on its behalf by the
undersigned thereunto duly authorized.
DIMON INCORPORATED
/s/ Jerry L. Parker
Date November 8, 1996 Jerry L. Parker
Vice President - Controller
(Principal Accounting Officer)
- -24-
<PAGE>
EXHIBIT INDEX
-------------------------
Exhibit Page No.
- ---------- -------
11 Computation of Earnings Per Common Share 26
27 Financial Data Schedule 27
- -25-
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT 11
DIMON INCORPORATED AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER COMMON SHARE
THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
September 30 September 30
1996 1995
(in thousands, except per share amounts) _________ _________
<S> <C> <C>
Primary
Earnings
Net Income . . . . . . . . . . . . . . . . $15,265 $ 6,028
======== =========
Shares
Weighted average number of common
shares outstanding. . . . . . . . . . . 42,367 38,098
Shares applicable to stock options,
net of shares assumed to be purchased
from proceeds at average market price . 165 76
________ ________
Average Number of Shares Outstanding. . . 42,532 38,174
======== ========
Earnings per Share
Net Income . . . . . . . . . . . . . . . $.36 $.16
==== =====
Assuming Full Dilution
Earnings
Income (loss) before extraordinary
items and cumulative effect of
accounting change. . . . . . . . . . . . $15,265 $ 6,028
Add after tax interest expense
applicable to 7 3/4% Convertible
Debentures issued June 3, 1993 . . . . - 669
_________ __________
Adjusted Net Income. . . . . . . . . . . $15,265 $ 6,697
======== =========
Shares
Weighted average number of common
shares outstanding . . . . . . . . . . 42,367 38,098
Shares applicable to stock options,
net of shares assumed to be
purchased from proceeds at average
market price . . . . . . . . . . . . . 173 76
Assuming conversion of 7 3/4%
Convertible Debentures at
beginning of period. . . . . . . . . . - 4,177
_________ ________
Average Number of Shares
Outstanding. . . . . . . . . . . . . . 42,540 42,351
========= ========
Earnings Per Share
Net Income as Adjusted . . . . . . . . . $.36 $.16
==== ====
</TABLE>
- -26-
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-START> JUL-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 84,780
<SECURITIES> 0
<RECEIVABLES> 128,468
<ALLOWANCES> (5,462)
<INVENTORY> 681,146
<CURRENT-ASSETS> 996,346
<PP&E> 341,156
<DEPRECIATION> (106,719)
<TOTAL-ASSETS> 1,340,640
<CURRENT-LIABILITIES> 556,252
<BONDS> 393,784
<COMMON> 136,992
0
0
<OTHER-SE> 186,310
<TOTAL-LIABILITY-AND-EQUITY> 1,340,640
<SALES> 410,734
<TOTAL-REVENUES> 410,734
<CGS> 345,685
<TOTAL-COSTS> 345,685
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 282
<INTEREST-EXPENSE> 9,897
<INCOME-PRETAX> 24,648
<INCOME-TAX> 9,859
<INCOME-CONTINUING> 15,265
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 15,265
<EPS-PRIMARY> .36
<EPS-DILUTED> .36
<PAGE>
</TABLE>
