SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 12 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _________________to____________________
Commission File Number 1-5426.
THOMAS INDUSTRIES INC.
(Exact name of registrant as specified in its charter)
Delaware 61-0505332
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
4360 Brownsboro Road, Louisville, Kentucky 40207
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 502/893-4600
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 twelve months (or for such shorter period that
the registrant was required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days. Yes [X] No
The number of shares outstanding of issuer's Common Stock, $1 par value, as
of May 5, 1995, was 10,087,678 shares.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
THOMAS INDUSTRIES INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in Thousands Except Amounts Per Share)
<TABLE>
<CAPTION>
Three Months Ended
March 31
1995 1994
<S> <C> <C>
Net sales $117,609 $109,391
Cost of products sold 86,381 79,741
Gross profit 31,228 29,650
Other (income) expense:
Selling, general, and
administrative expenses 26,248 25,514
Interest expense 2,273 2,427
Other (8) (129)
Income before income taxes 2,715 1,838
Income tax provision 1,127 827
Net income $ 1,588 $ 1,011
Per Common Share amounts:
Net income per share $.16 $.10
Dividends declared per shar $.10 $.10
Average number of shares outstanding 10,081,767 10,049,995
See notes to condensed consolidated financial statements.
</TABLE>
THOMAS INDUSTRIES INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
<TABLE>
<CAPTION>
(Unaudited)
March 31 December 31
ASSETS 1995 1994*
<S> <C> <C>
Current assets
Cash and cash equivalents $ 3,446 $ 5,050
Accounts receivable, less allowance
(1995--$2,017; 1994--$1,773) 68,664 61,075
Inventories:
Finished products 31,577 31,417
Raw materials 28,655 29,970
Work in process 11,580 11,515
71,812 72,902
Assets held for disposition 1,125 2,157
Deferred income taxes 6,097 5,874
Other current assets 7,231 8,297
Total current assets 158,375 155,355
Property, plant and equipment 146,697 142,060
Less accumulated depreciation and amortization 70,469 66,098
76,228 75,962
Intangible assets--less accumulated amortization 63,276 62,532
Other assets 11,023 11,222
$308,902 $305,071
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Notes payable $ 12,624 $ 8,252
Accounts payable 28,877 25,892
Other current liabilities 37,494 34,821
Current portion of long-term debt 8,923 8,832
Total current liabilities 87,918 77,797
Deferred income taxes 7,919 7,684
Long-term debt (less current portion) 71,352 79,693
Minimum pension liability 1,759 1,759
Other long-term liabilities 4,225 4,372
Shareholders' equity
Preferred Stock, $1 par value,
3,000,000 shares authorized--none issued
Common Stock, $1 par value
Shares authorized: 60,000,000
Shares issued: 1995--11,450,873;
1994--11,447,873 11,451 11,448
Capital surplus 117,583 117,557
Retained earnings 31,844 31,264
Minimum pension liability adjustment (1,045) (1,045)
Equity adjustment from translation (1,124) (2,478)
Less cost of treasury shares:
(1995 and 1994--1,366,695) (22,980) (22,980)
135,729 133,766
$308,902 $305,071
*Derived from the audited December 31, 1994, consolidated balance sheet.
See notes to condensed consolidated financial statements.
</TABLE>
THOMAS INDUSTRIES INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(Dollars in Thousands)
<TABLE>
<CAPTION>
Three Months Ended
March 31
1995 1994
<S> <C> <C>
Cash flows from operating activities:
Net income $ 1,588 $ 1,011
Reconciliation of net income to net cash
provided by (used in) operating activities:
Depreciation and amortization 3,989 4,022
Deferred income taxes (178) 116
Provision for losses on accounts receivable 253 322
Changes in operating assets and liabilities,
net of effects of acquisitions and
dispositions:
Accounts receivable (7,295) (3,013)
Inventories 2,161 (360)
Other current assets 2,165 61
Accounts payable 2,786 (1,724)
Accrued expenses and other liabilities 1,806 (2,833)
Other 124 (128)
Net cash provided by (used in)
operating activities 7,399 (2,526)
Cash flows from investing activities:
Purchase of property, plant, and equipment (2,811) (2,556)
Proceeds from sale of property, plant, and
equipment 4 2,366
Net cash used in investing activities (2,807) (190)
Cash flows from financing activities:
Proceeds from short-term debt, net 3,244 6,282
Payments on long-term debt (8,485) (247)
Dividends paid (1,007) (1,005)
Other 52 (113)
Net cash provided by (used in)
financing activities (6,196) 4,917
(Decrease) increase in cash and cash
equivalents (1,604) 2,201
Cash and cash equivalents at beginning of quarter 5,050 2,364
Cash and cash equivalents at end of quarter $ 3,446 $ 4,565
See notes to condensed consolidated financial statements.
</TABLE>
THOMAS INDUSTRIES INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Note A -- Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles
for interim financial reporting and with the instructions to Form 10-Q and
Article 10-01 of Regulation S-X. Accordingly, they do not include all the
information and footnotes required by generally accepted accounting
principles for complete financial statements.
The results of operations for the three-month period ended March 31, 1995,
are not necessarily indicative of the results that may be expected for the
year ending December 31, 1995. In the opinion of management, all
adjustments considered necessary for a fair presentation have been
included. For further information, refer to the consolidated financial
statements and footnotes included in the Company's Annual Report on Form
10-K for the year ended December 31, 1994.
Note B -- Contingencies
In the normal course of business, the Company and its subsidiaries are
parties to litigation. Management believes that these matters will be
resolved with no material adverse impact on the financial position of the
Company.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Net sales during the first quarter ended March 31, 1995, were 8%
above the first quarter 1994. Net sales for the Lighting Segment
were up 13% from last year's first quarter, due primarily to
strength in the Commercial & Industrial and Outdoor Divisions.
The Compressor & Vacuum Pump Segment experienced an 11% increase
in net sales for the quarter over 1994 due to the continuing
success of new product applications and the strength of existing
product volume. Included in the 1994 first quarter net sales was
$5,072,000 from operations divested in 1994.
Net income for the first three months of 1995 increased to
$1,588,000 compared to last year's first quarter net income of
$1,011,000. Operating income from the Compressor & Vacuum Pump
Segment declined slightly due to a temporary weakness in certain
segments of our North American OEM medical market. The Lighting
Segment operating results improved compared to last year due to a
13% increase in net sales coupled with the favorable effect of
cost savings programs initiated in 1994.
Cost of products sold in the first quarter 1995 increased slightly
to 73.4% of net sales compared to 72.9% last year due primarily to
a change in sales mix.
Selling, general, and administrative costs in the first quarter of
1995 were $734,000 higher compared to the prior year first
quarter; however, SG&A expenses as a percent of net sales declined
in 1995 to 22.3% compared to 23.3% in 1994. SG&A expenses for the
Lighting Segment were up 5.6% for the current quarter from last
year's level due to the higher sales volume. In the Compressor &
Vacuum Pump Segment, SG&A expenses increased 13.9% over the prior
year first quarter in support of the higher sales volume.
Interest expense for the first three months of 1995 was 6% lower
than the comparable 1994 period. The effect of higher short-term
interest rates in the U.S. was more than offset by lower debt
levels.
Working capital of $70,457,000 at March 31, 1995, was down from
$77,558,000 at December 31, 1994. Accounts receivable at March
31, 1995, exceed December 31, 1994, by 12% and March 31, 1994, by
8% due to the increase in net sales. Inventory decreased 1.5%
from December 31, 1994, but increased 1% from March 31, 1994.
Notes payable to banks increased $4,372,000 from December 31,
1994, but decreased $9,528,000 from March 31, 1994. The current
ratio was 1.80 at March 31, 1995, compared to 2.00 at December 31,
1994, and 1.86 at March 31, 1994. Certain loan agreements of the
Company include restrictions on working capital, operating leases,
tangible net worth, and the payment of cash dividends and stock
distributions. Under the most restrictive of these arrangements,
retained earnings of $14.5 million are not restricted at March 31,
1995.
As of March 31, 1995, the Company had available credit of $67
million with banks under short-term borrowing arrangements and a
revolving line of credit, $63.7 million of which was unused as
of March 31,1995. Anticipated funds from operations, along
with available short-term credit and other resources, are
expected to be sufficient to meet cash requirements in the year
ahead. Cash in excess of operating requirements will continue to
be invested in high grade, short-term securities.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
(3) Bylaws, as amended April 20, 1995, filed as Exhibit
4.3 to Registration Statement on Form S-8 (Registration
No. 33-59099) dated May 4, 1995.
(27) Financial Data Schedule
(b) There have been no reports on Form 8-K filed for the three
months ended March 31, 1995.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
THOMAS INDUSTRIES INC.
Registrant
/s/ Phillip J. Stuecker
_________________________________
Phillip J. Stuecker, Vice President
and Chief Financial Officer
Date: May 10, 1995<PAGE>
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<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> 3,446
<SECURITIES> 0
<RECEIVABLES> 70,681
<ALLOWANCES> 2,017
<INVENTORY> 71,812
<CURRENT-ASSETS> 158,375
<PP&E> 146,697
<DEPRECIATION> 70,469
<TOTAL-ASSETS> 308,902
<CURRENT-LIABILITIES> 87,918
<BONDS> 71,352
<COMMON> 11,451
0
0
<OTHER-SE> 124,278
<TOTAL-LIABILITY-AND-EQUITY> 308,902
<SALES> 117,609
<TOTAL-REVENUES> 117,609
<CGS> 86,381
<TOTAL-COSTS> 86,381
<OTHER-EXPENSES> 25,987
<LOSS-PROVISION> 253
<INTEREST-EXPENSE> 2,273
<INCOME-PRETAX> 2,715
<INCOME-TAX> 1,127
<INCOME-CONTINUING> 1,588
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,588
<EPS-PRIMARY> .16
<EPS-DILUTED> .16
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