SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
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Date of Report
(Date of earliest
event reported): February 18, 1999
Bandag, Incorporated
(Exact name of registrant as specified in its charter)
Iowa 001-07007 42-0802143
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(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
2905 North Highway 61, Muscatine, Iowa 52761
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(Address of principal executive offices including zip code)
(319) 262-1400
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(Registrant's telephone number)
Page 1 of 3 pages
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Item 5. Other Events.
(a) Registrant is filing (i) unaudited condensed consolidated balance sheets
for the years ended December 31, 1998 and 1997, respectively, (ii)
unaudited condensed consolidated statements of earnings for the three and
twelve month periods ended December 31, 1998 and 1997, respectively, and
(iii) unaudited condensed consolidated statements of cash flows for the
twelve months ended December 31, 1998 and 1997, respectively. The
financial statements filed as an exhibit to this report are unaudited,
contain no notes and are subject to such changes as may be incorporated
into the audited financial statements of Registrant to be filed as part
of Registrant's Annual Report on Form 10-K for the fiscal year ended
December 31, 1998.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(a) None.
(b) None.
(c) See Exhibit Index on page 3.
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Current Report on Form 8-K to be signed on its
behalf by the undersigned thereunto duly authorized.
BANDAG, INCORPORATED
By: /s/ Warren W. Heidbreder
Warren W. Heidbreder, Vice President,
Chief Financial Officer
Page 2 of 3 pages
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EXHIBIT INDEX
Exhibit Number Exhibit Description
99.1 Condensed consolidated balance sheets (unaudited) for the
years ended December 31, 1998 and 1997, respectively;
condensed consolidated statements of earnings (unaudited)
for the three and twelve months periods ended December 31,
1998 and 1997, respectively; and condensed consolidated
statements of cash flows (unaudited) for the twelve months
periods ended December 31, 1998 and 1997, respectively.
EXHIBIT 99.1
<TABLE>
<CAPTION>
BANDAG, INCORPORATED AND SUBSIDIARIES
(In thousands)
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Dec. 31, Dec. 31,
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Unaudited Condensed Consolidated Balance Sheets 1998 1997
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ASSETS
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<S> <C> <C>
Cash and cash equivalents $ 37,912 $ 196,400
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Investments 9,721 1,575
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Accounts receivable - net 217,299 231,648
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Inventories:
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Finished products 96,889 90,228
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Materials & work-in-process 14,845 17,295
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111,734 107,523
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Other current assets 62,458 61,848
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Total current assets 439,124 598,994
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Property, plant, and equipment 503,745 459,446
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Less accumulated depreciation (290,699) (261,846)
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213,046 197,600
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Other assets, net 103,559 103,310
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Total assets $ 755,729 $ 899,904
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LIABILITIES & STOCKHOLDERS' EQUITY:
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Accounts payable $ 38,286 $ 52,100
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Income taxes payable 13,704 20,039
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Accrued employee compensation and benefits 27,498 28,874
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Accrued marketing expenses 37,044 32,608
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Other accrued expenses 46,880 73,195
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Short-term notes payable and current portion of other obligations 11,497 99,726
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Total current liabilities 174,909 306,542
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Long-term debt and other obligations 109,757 123,195
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Deferred income tax liabilities 3,766 6,753
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Stockholders' equity:
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Common stock; $1 par value; authorized - 21,500,000 shares;
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Issued and outstanding - 9,083,797 shares in 1998; 9,751,063 in 1997 9,084 9,751
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Class A Common stock; $1 par value; authorized - 50,000,000 shares;
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Issued and outstanding - 10,824,974 shares in 1998; 11,013,561 in 1997 10,825 11,014
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Class B Common stock; $1 par value; authorized - 8,500,000 shares;
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Issued and outstanding - 2,046,577 shares in 1998; 2,048,785 in 1997 2,047 2,049
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Additional paid-in capital 7,287 6,052
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Retained earnings 452,274 445,887
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Equity adjustment from foreign currency translation (14,220) (11,339)
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Total equity 467,297 463,414
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Total liabilities & stockholders' equity $ 755,729 $ 899,904
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0 0
</TABLE>
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<TABLE>
<CAPTION>
BANDAG, INCORPORATED AND SUBSIDIARIES
(In thousands except per share data)
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Three Months Ended Twelve Months Ended
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Unaudited Condensed Consolidated Statements of Earnings 12/31/98 12/31/97 12/31/98 12/31/97
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<S> <C> <C> <C> <C>
Net sales $ 274,975 $ 256,015 $1,059,669 $ 822,523
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Gain on sale of marketable equity securities - 95,087 - 95,087
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Other income 4,915 4,781 19,829 14,092
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279,890 355,883 1,079,498 931,702
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Cost of products sold 171,062 150,524 648,366 482,387
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Engineering, selling, administrative and other expenses 80,193 89,921 320,847 243,060
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Interest expense 1,933 2,161 10,772 3,339
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253,188 242,606 979,985 728,786
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Earnings before income taxes 26,702 113,277 99,513 202,916
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Income taxes 8,157 46,377 40,194 80,922
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Net earnings $ 18,545 $ 66,900 $ 59,319 $ 121,994
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Net earnings per share - Basic $ 0.84 $ 2.94 $ 2.64 $ 5.35
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Net earnings per share - Diluted $ 0.84 $ 2.92 $ 2.63 $ 5.33
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Cash dividends per share $ 0.285 $ 0.275 $ 1.110 $ 1.025
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Depreciation included in expense $ 12,621 $ 9,827 $ 42,769 $ 34,576
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Amortization included in expense $ 2,166 $ 1,533 $ 8,641 $ 2,281
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Average shares outstanding - Basic 21,906 22,762 22,471 22,786
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Average shares outstanding - Diluted 22,008 22,893 22,559 22,908
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</TABLE>
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<TABLE>
<CAPTION>
BANDAG, INCORPORATED AND SUBSIDIARIES
(In thousands)
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Twelve Months Ended
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Unaudited Condensed Consolidated Statements of Cash Flows 12/31/98 12/31/97
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Operating Activities
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<S> <C> <C>
Net earnings $ 59,319 $ 121,994
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Depreciation and amortization 51,410 36,857
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Gain on sale of marketable equity securities - (95,087)
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Other (13,903) (23,055)
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Increase (decrease) in operating assets and liabilities - net (12,057) 30,593
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Net cash provided by operating activities 84,769 71,302
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Investing Activities
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Additions to property, plant and equipment (65,375) (42,223)
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Proceeds from the dispositions of property, plant, and equipment 4,128 4,117
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Purchases of investments (20,941) (3,645)
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Maturities of investments 12,795 4,159
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Sale of marketable equity securities - 119,558
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Payments for acquisitions of businesses (17,542) (47,659)
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Net cash provided by (used in) investing activities (86,935) 34,307
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Financing Activities
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Proceeds from short-term notes payable 48,590 11,491
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Proceeds from issuance of long-term debt and other long-term obligations 3,784 100,000
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Principal payments on short-term notes payable and other liabilities (153,273) (18,422)
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Cash dividends (24,867) (23,395)
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Purchases of Common Stock (29,353) (8,643)
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Net cash provided by (used in) financing activities (155,119) 61,031
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Effect of exchange rate changes on cash and cash equivalents (1,203) (1,693)
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Increase (decrease) in cash and cash equivalents (158,488) 164,947
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Cash and cash equivalents at beginning of year 196,400 31,453
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Cash and cash equivalents at end of year $ 37,912 $ 196,400
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</TABLE>
