------------------------------------------------------------------------------------------------------------------------------------
ELEVEN-YEAR FINANCIAL SUMMARY
------------------------------------------------------------------------------------------------------------------------------------
(Dollars in Thousands, except per share amounts)
------------------------------------------------------------------------------------------------------------------------------------
OPERATING RESULTS Fiscal Years 1995 1994 1993 1992 1991 1990
Net Sales $ 790,175 $ 795,275 $ 700,897 $ 683,485 $ 632,562 $571,445
Cost and Expenses
Cost of Sales 561,170 569,063 501,135 492,092 458,953 410,094
Operating Expense 146,344 146,683 129,997 131,232 120,643 109,206
------------------------------------------------------------------------------------------------------------------------------------
Income from Operations 82,661 79,529 69,765 60,161 52,966 52,145
Other (Income) Expense - Net (763) 631 2,036 360 1,504 3,337
Interest Expense 4,216 2,504 1,645 2,932 5,686 4,704
------------------------------------------------------------------------------------------------------------------------------------
Income Before Income Taxes 79,208 76,394 66,084 56,869 45,776 44,104
Net Income 47,520 45,799 40,156 34,418 27,676 26,731
Net Income as a Percent of Sales 6.0% 5.8% 5.7% 5.0% 4.4% 4.7%
Return on Average Equity 24.4% 24.4% 21.8% 21.7% 20.0% 22.1%
Per Common Share:
Net Income $ 2.15 $ 2.07 $ 1.82 $ 1.57 $ 1.27 $ 1.22
Dividends Paid .60 .52 .44 .36 .30 .26
Stockholders' Equity 9.65 7.97 9.02 7.84 6.79 5.92
------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL POSITION Total Assets $ 398,199 $ 367,608 $ 340,479 $ 321,618 $ 319,367 $302,806
Working Capital at Year-End 90,995 87,887 85,741 57,500 58,066 56,199
Property, Plant and Equipment - Net 130,404 107,956 103,916 101,005 98,818 106,621
Long-Term Debt, Excluding Current Portion 21,658 35,343 7,890 10,684 30,697 49,456
Stockholders' Equity 212,115 176,712 198,826 169,377 147,896 128,707
------------------------------------------------------------------------------------------------------------------------------------
OTHER STATISTICS Property, Plant and Equipment Expenditures $ 38,982 $ 31,817 $ 17,213 $ 19,581 $ 8,843 $ 13,171
Depreciation and Amortization Expense 20,318 19,134 20,648 19,793 18,896 15,119
Research and Development Expense 27,746 27,430 24,955 24,802 23,226 20,350
Total Cash Dividends $ 13,121 $ 11,252 $ 9,471 $ 7,843 $ 6,519 $ 5,651
Average Common Shares Outstanding (000's) 22,091 22,163 22,031 21,973 21,862 21,854
Number of Stockholders 1,864 1,902 1,866 1,863 1,857 1,863
Number of Employees at Year-End 2,542 2,585 2,577 2,482 2,530 2,502
Market Price Range --
Common Stock: High $ 41.88 $ 45.75 $ 41.50 $ 36.38 $ 23.44 $ 20.00
Low 30.50 32.75 30.38 22.56 15.25 14.69
-----------------------------------------------------------------------------------------------------------------------------------
ELEVEN-YEAR FINANCIAL SUMMARY Table Continued
-----------------------------------------------------------------------------------------------------------------------------------
(Dollars in Thousands, except per share amounts)
-----------------------------------------------------------------------------------------------------------------------------------
Fiscal Years 1989 1988 1987 1986 1985
-----------------------------------------------------------------------------------------------------------------------------------
OPERATING RESULTS Net Sales $ 526,892 $ 479,617 $ 448,944 $ 345,248 $ 347,164
Cost of Sales 385,459 356,690 321,258 252,588 260,858
Operating Expense 98,725 89,906 89,862 63,733 62,403
-----------------------------------------------------------------------------------------------------------------------------------
Income from Operations 42,708 33,021 37,824 28,927 23,903
Other (Income) Expense - Net (1,555) (2,733) (479) (2,871) (2,710)
Interest Expense 5,838 6,370 6,227 5,103 6,153
-----------------------------------------------------------------------------------------------------------------------------------
Income Before Income Taxes 38,425 29,384 32,076 26,695 20,460
Net Income 23,234 18,295 18,052 14,770 11,532
Net Income as a Percent of Sales 4.4% 3.8% 4.0% 4.3% 3.3%
Return on Average Equity 21.9% 19.7% 23.0% 20.3% 16.5%
Per Common Share:
Net Income $ 1.04 $ .81 $ .80 $ .63 $ .49
Dividends Paid .22 .20 .16 .13 .11
Stockholders' Equity 5.11 4.46 3.85 3.21 3.15
-----------------------------------------------------------------------------------------------------------------------------------
FINANCIAL POSITION Total Assets $ 261,103 $ 232,974 $ 236,099 $ 164,678 $ 164,758
Working Capital at Year-End 63,519 60,694 57,148 29,091 57,316
Property, Plant and Equipment - Net 82,687 73,652 74,748 51,931 54,341
Long-Term Debt, Excluding Current Portion 40,201 42,412 58,561 6,619 35,986
Stockholders' Equity 112,698 99,895 85,807 71,020 74,363
-----------------------------------------------------------------------------------------------------------------------------------
OTHER STATISTICS Property, Plant and Equipment Expenditures $ 8,701 $ 9,390 $ 10,032 $ 4,806 $ 4,060
Depreciation and Amortization Expense 13,975 12,759 11,687 7,042 7,020
Research and Development Expense 18,037 17,190 17,062 14,880 15,494
Total Cash Dividends $ 4,899 $ 4,472 $ 3,559 $ 3,034 $ 2,593
Average Common Shares Outstanding (000's) 22,330 22,488 22,490 23,536 23,774
Number of Stockholders 1,864 1,922 1,869 1,814 1,855
Number of Employees at Year-End 2,593 2,505 2,687 2,121 2,204
Market Price Range--
Common Stock: High $ 15.94 $ 15.50 $ 20.25 $ 12.04 $ 6.97
Low 11.32 10.57 9.82 6.60 4.38
Reference is made to the Notes to Consolidated Financial Statements for a
summary of accounting policies and additional information. The above amounts
include Sunbelt Coatings, Inc. results, as the 1995 acquisition was accounted
for as a pooling of interests. Results for 1994 include six months of operations
for XxXxxxxxx Technologies, Inc. prior to the spin-off to shareholders. Results
for 1987 include ten months of operations for Enterprise Paint Companies. Per
share data has been adjusted to reflect 2-for-1 stock splits effective in March
1987 and March 1992. The number of stockholders is based on recordholders at
year-end.
GROUP SALES
The operating divisions of the Company are organized to reflect classes of
similar products. The table below shows the percentage of net sales for these
groups for the past five years.
(Percent of Net Sales)
--------------------------------------------------------------------------
Fiscal Years 1995 1994 1993 1992 1991
--------------------------------------------------------------------------
Consumer Coatings 34 31 29 29 30
Packaging Coatings 27 25 27 27 24
Industrial Coatings 25 23 22 23 24
Special Products 14 21 22 21 22
--------------------------------------------------------------------------
STOCK INFORMATION AND DIVIDENDS
Stock traded on the New York Stock Exchange
-------------------------------------------------------------------------------------------------------------------
For the Fiscal Year 1995 1994
-------------------------------------------------------------------------------------------------------------------
Market price / high - low: First quarter $36.75 - $30.50 $41.38 - $36.50
Second quarter 39.50 - 33.38 45.75 - 39.25
Third quarter 40.00 - 35.25 38.13 - 33.75
Fourth quarter 41.88 - 38.25 37.25 - 32.75
-------------------------------------------------------------------------------------------------------------------
Per share dividends: First quarter $.15 $.13
Second quarter .15 .13
Third quarter .15 .13
Fourth quarter .15 .13
-------------------------------------------------------------------------------------------------------------------
$.60 $.52
-------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------
6 & 7
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
OVERVIEW. On March 24, 1995, the Company acquired the outstanding shares of
stock of Sunbelt Coatings, Inc. The transaction was accounted for as a pooling
of interests with the consolidated financial statements for all periods
presented restated to include the results of Sunbelt. The impact of this
restatement was not material to the financial condition or results of operations
of the Company. See Note B to the Consolidated Financial Statements.
The Company's operations for fiscal 1994 include the results for the Resin
Products Division, which was purchased from Xxxxxxx, Xxxxxxxxxxxx by the
Company's wholly-owned subsidiary, XxXxxxxxx, Inc., from the date of its
acquisition on February 18, 1994, to the time of the spin-off at the close of
business on April 29, 1994. At the time of the spin-off, all of the assets of
the Resin Products Division and certain assets and liabilities of XxXxxxxxx were
distributed to Valspar shareholders in the form of a stock dividend. See Note C
to the Consolidated Financial Statements.
OPERATIONS 1995 VS. 1994. Net sales declined $5,100,000 from 1994. Excluding the
sales of XxXxxxxxx operations spun-off in 1994, net sales increased $57,945,000
or 7.9% to $790,175,000 in 1995 from fiscal 1994 pro-forma sales of
$732,230,000. The increase was driven by volume increases in the Consumer and
Packaging Groups, a favorable shift in mix in the Industrial Group, and pricing
actions taken in all groups to mitigate the impact of rising raw material costs.
The increase was partially offset by lower unit sales in certain business lines
within the Special Products Group.
The gross profit margin declined slightly to 29.0% in 1995 from 29.4% in 1994 on
a pro-forma basis. The decrease in this year's margin is largely attributable to
higher raw material costs, which were partially offset by reduced production
costs in existing facilities. Other items contributing to the margin decline are
a shift in product mix in the Industrial Group and costs related to the start up
of the new Louisville, Kentucky; Statesville, North Carolina; and Marengo,
Illinois facilities. With Marengo beginning production during the third quarter,
all three facilities are operating satisfacto rily. Although the Company
estimates that the rate of raw material price escalation will ease in fiscal
1996, margin pressure will continue. The Company intends to offset these higher
costs by continuing to improve its operating efficiency and to seek product
price increases.
On a historical basis, the gross profit margin increased to 29.0% in 1995 from
28.4% in 1994 as the spun-off XxXxxxxxx operations sold lower margin products.
Operating expenses (research, selling, and administrative) were 3.8% higher than
the comparable period of 1994 on a pro-forma basis. The Company incurred
increased expenses attributable to the upgrade and replacement of the Company's
information systems and higher selling expenses, including expenditures
associated with global expansion efforts. These increases were partially offset
by cost containment and reduction efforts throughout the Company in response to
the gross margin pressure during 1995. Headcount at the end of the year
decreased by 1.7% even though personnel were added in high growth potential
areas of the Company.
Other income, net of expense, for 1994 included a pre-tax charge of $2,474,000
for the write-down of a resin plant to appraised fair value that was transferred
from XxXxxxxxx to Valspar in connection with the spin-off. Other income in 1995
decreased $1,144,000 from 1994 on a pro-forma basis, as the prior year included
better financial performance from joint ventures and recovery of accounts
receivable and other assets written off in prior years.
Interest expense increased $1,498,000 or 55.1% over 1994 on a pro-forma basis.
Increased average debt levels resulting from the XxXxxxxxx spin-off, coupled
with higher interest rates and interest paid on an income tax assessment, were
the primary contributors to the increase in 1995.
On a pro-forma basis, net income increased 8.4% from $43,853,000 in 1994 to
$47,520,000 in 1995, representing the 21st consecutive year of increased
earnings. Historical net income for 1994 was $45,799,000. Higher sales,
manufacturing efficiencies and restrained operating expenses offset the impact
of reduced margin due to escalating raw material costs during 1995.
8
OPERATIONS 1994 VS. 1993. Net sales in fiscal 1994 were $795,275,000, an
increase of $94,378,000 or 13.5% over fiscal 1993. Excluding XxXxxxxxx,
pro-forma sales in 1994 were $732,230,000, up $74,545,000 or 11.3% from
pro-forma fiscal 1993 sales. The majority of the 1994 increase was attributable
to additional volume sold within the Consumer, Industrial, and Packaging
Coatings Groups.
The Company's gross profit margin was essentially flat - 28.5% in 1993 and 28.4%
in 1994. Excluding XxXxxxxxx in both years, the Company's pro-forma gross profit
margin increased from 28.6% in 1993 to 29.4% in 1994. The improvement in gross
profit margin for the Company's continuing businesses was primarily due to
increased sales of higher margin Consumer and Industrial Group products coupled
with reduced manufacturing costs. Raw material prices declined modestly from
1993, although prices increased during the last half of 1994.
Operating expenses (research, selling, and administrative) for 1994 increased
$16,686,000 or 12.8% from 1993. The increase in operating expenses was primarily
due to operating expenses associated with the acquired business, increased
direct selling expenses, a higher level of promotional and advertising programs
associated with our Consumer Group's new business efforts, and pilot program
expenses related to the selection of a new management information system.
Excluding XxXxxxxxx, pro-forma operating expenses were $140,991,000, an increase
of $16,055,000 or 12.9% from pro-forma 1993 expenses.
Interest expense increased by $859,000 or 52.2% from 1993. This increase was due
to additional borrowings after the repayment of intercompany debt owed to
XxXxxxxxx and to slightly higher interest rates in effect during 1994.
Other non-operating expenses for 1994 included the write-down to appraised fair
value of a resin plant mentioned earlier. In 1993, non-operating expense
included $1,712,000 of expense related to the pre-tax cumulative effect of
adopting Statement of Financial Accounting Standards Statement No. 106,
"Employers' Accounting for Postretirement Benefits Other Than Pensions."
Excluding XxXxxxxxx, net income increased 24.3% from $35,290,000 in 1993 to
$43,853,000 in 1994. On a historical basis, net income improved by 14.1% from
$40,156,000 in 1993 to $45,799,000 in 1994. The additional volume sold, improved
gross profit margins within the Company's continuing businesses, and controlled
operating expenses, were the primary contributors to 1994's increase in net
income.
FINANCIAL CONDITION. The net cash provided by the Company's operations was
$82,153,000 for fiscal 1995 compared to $57,109,000 for fiscal 1994. The
increase is a result of the higher earnings, increased non-cash depreciation and
amortization expense and reduced working capital requirements. Inventory levels
in the Consumer, Industrial and Packaging Groups declined in fiscal 1995 as a
result of focused inventory management.
Accounts payable and accrued liabilities increased in 1995 due to increases in
various expense accruals and approximately $12,400,000 of issued checks which
had not cleared the Company's bank accounts at October 27, 1995.
Accounts receivable balances have increased, partially offsetting the impact of
the other changes in net operating assets. The increase is a result of the sales
growth coupled with an extension of longer payment terms to selected high-volume
customers.
Cash used for investing activities decreased from $111,571,000 in fiscal 1994 to
$40,032,000 in 1995 due to the acquisition of the Resin Products Division in
1994, partially offset by higher capital spending in 1995. The higher capital
spending was attributable to the upgrade and replacement of existing management
information systems and the completion of construction on three facilities to
meet increased production requirements for the resin, consumer and colorant
businesses. Aside from the construction projects, capital spending was evenly
distributed among the four business groups with no other single major
expenditure. The Company anticipates capital spending in fiscal 1996 to be close
to the spending level in 1995 as the Company continues to upgrade and replace
existing management information systems and invest in operations-related upgrade
projects.
9
Aside from investing activities, the Company used its cash from operations to
pay down $23,488,000 in debt; the ratio of total debt to capital decreased to
11.4% at the close of 1995 compared to 22.3% at 1994. Average debt outstanding
during 1995 was $52,400,000 at a weighted average interest rate of 5.27% versus
$46,700,000 at 4.65% last year, increasing the current year's interest expense
to $4,216,000 from $2,504,000 in the prior year. In the second quarter, the
Company entered into a new five-year $150,000,000 revolving credit agreement,
replacing a $45,000,000 facility. Also during the year, the Company obtained
$12,500,000 in Industrial Revenue Bond financing for its construction projects
in Statesville, North Carolina and Marengo, Illinois. At October 27, 1995, the
Company has unused lines of credit available from banks of $280,741,000 which
are expected to be adequate to cover current and projected needs for short-term
financing.
Fiscal 1995 Common Stock dividends of $13,121,000 represent a 16.6% increase
over 1994. The annual amount was increased to 60(cent) per share from 52(cent)
in 1994 with the payout at 28.6% of the prior year's earnings, which is
consistent with the Company's target payout rate of 25% to 35%. The Company's
debt agreements impose limitations on the amount of dividends that can be paid.
These limitations have not affected, nor are they expected to affect, the
ability of the Company to pay dividends in the future.
The Company has continuing authorization to purchase shares of its Common Stock
for treasury at management's discretion for general corporate purposes.
Purchases under this program were 105,000, 133,000 and 160,000 shares in 1995,
1994 and 1993, respectively. Additional treasury stock activity for 1995
included approximately 8,000 shares tendered in conjunction with the exercise of
stock options totaling 113,000 shares.
The Company is involved in various claims relating to environmental and waste
disposal matters at a number of current and former plant sites. The Company
participates in remedial and other environmental compliance activities at
certain of these sites. At other sites, the Company has been named as a
potentially responsible party (PRP) under federal and state environmental laws
for the remediation of hazardous waste. The Company's management reviews each
individual site, taking into consideration the number of parties involved at the
site, joint and several liability of other PRPs, the level of contribution that
may be attributed to the Company relative to the other parties, the nature and
magnitude of the wastes involved, the method and extent of remediation, the
potential insurance coverage, the estimated legal and consulting expense with
respect to each site, and the time period over which any costs would likely be
incurred. Based on the above analysis, management estimates, to the extent
possible, the restoration or other clean-up costs and related claims for each
site. The estimates are based in part on discussions with other PRPs,
governmental agencies and engineering firms.
Based on the above considerations, the Company has established reserves for
potential environmental liabilities and plans to continue to accrue reserves in
appropriate amounts. The reserves are continuously reviewed and adjusted as
additional information becomes available and management is able to better
estimate the ultimate clean-up costs at individual sites. While uncertainties
exist with respect to the amounts and timing of the Company's ultimate
environmental liabilities, management believes that such liabilities,
individually and in the aggregate, will not have a material adverse effect on
the Company's financial condition or results of operations.
10
CONSOLIDATED BALANCE SHEETS
-------------------------------------------------------------------------------------------------------------------
(Dollars in Thousands, except per share amounts)
-------------------------------------------------------------------------------------------------------------------
October 27, October 28,
1995 1994
-------------------------------------------------------------------------------------------------------------------
ASSETS
CURRENT ASSETS Cash and cash equivalents $ 4,875 $ 2,580
-------------------------------------------------------------------------------------------------------------------
Accounts and notes receivable, less
allowances for doubtful accounts
(1995 - $911; 1994 - $890) 129,954 112,892
-------------------------------------------------------------------------------------------------------------------
Inventories 76,893 84,076
-------------------------------------------------------------------------------------------------------------------
Prepaid expenses and other accounts 25,186 24,603
-------------------------------------------------------------------------------------------------------------------
Total Current Assets 236,908 224,151
OTHER ASSETS 30,887 35,501
-------------------------------------------------------------------------------------------------------------------
PROPERTY, PLANT AND
EQUIPMENT Land 8,607 8,560
-------------------------------------------------------------------------------------------------------------------
Buildings 76,047 64,025
-------------------------------------------------------------------------------------------------------------------
Machinery and equipment 162,886 137,372
-------------------------------------------------------------------------------------------------------------------
247,540 209,957
-------------------------------------------------------------------------------------------------------------------
Less accumulated depreciation 117,136 102,001
-------------------------------------------------------------------------------------------------------------------
Net Property, Plant and Equipment 130,404 107,956
-------------------------------------------------------------------------------------------------------------------
$398,199 $367,608
-------------------------------------------------------------------------------------------------------------------
LIABILITIES AND
STOCKHOLDERS' EQUITY
CURRENT LIABILITIES Notes payable to banks $ 5,288 15,000
-------------------------------------------------------------------------------------------------------------------
Trade accounts payable 68,575 51,850
-------------------------------------------------------------------------------------------------------------------
Income taxes 9,098 8,449
-------------------------------------------------------------------------------------------------------------------
Accrued liabilities 62,719 60,641
-------------------------------------------------------------------------------------------------------------------
Current portion of long-term debt 233 324
-------------------------------------------------------------------------------------------------------------------
Total Current Liabilities 145,913 136,264
LONG-TERM DEBT, LESS
CURRENT PORTION 21,658 35,343
-------------------------------------------------------------------------------------------------------------------
DEFERRED INCOME TAXES 5,113 4,724
-------------------------------------------------------------------------------------------------------------------
DEFERRED LIABILITIES 13,400 14,565
-------------------------------------------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY Common Stock (par value $.50 per share;
shares authorized 30,000,000; shares issued,
including shares in
treasury, 26,660,656 shares) 13,330 13,330
-------------------------------------------------------------------------------------------------------------------
Additional paid-in capital 10,348 6,588
-------------------------------------------------------------------------------------------------------------------
Retained earnings 235,361 200,913
-------------------------------------------------------------------------------------------------------------------
Other (3,436) (2,616)
-------------------------------------------------------------------------------------------------------------------
255,603 218,215
Less cost of Common Stock in treasury
(1995 - 4,672,046 shares;
1994 - 4,739,015 shares) 43,488 41,503
-------------------------------------------------------------------------------------------------------------------
Total Stockholders' Equity 212,115 176,712
-------------------------------------------------------------------------------------------------------------------
$398,199 $367,608
-------------------------------------------------------------------------------------------------------------------
See Notes to Consolidated Financial Statements.
11
CONSOLIDATED STATEMENTS OF INCOME
-------------------------------------------------------------------------------------------
(Dollars in Thousands, except per share amounts)
-------------------------------------------------------------------------------------------
October 27, October 28, October 29,
For the Year Ended 1995 1994 1993
-------------------------------------------------------------------------------------------
NET SALES $ 790,175 $ 795,275 $ 700,897
-------------------------------------------------------------------------------------------
COST AND EXPENSES
Cost of sales 561,170 569,063 501,135
Research and development 27,746 27,430 24,955
Selling and administrative 118,598 119,253 105,042
-------------------------------------------------------------------------------------------
INCOME FROM OPERATIONS 82,661 79,529 69,765
Other (income) expense, net (763) 631 2,036
Interest 4,216 2,504 1,645
-------------------------------------------------------------------------------------------
INCOME BEFORE INCOME TAXES 79,208 76,394 66,084
Income taxes 31,688 30,595 25,928
-------------------------------------------------------------------------------------------
NET INCOME $ 47,520 $ 45,799 40,156
-------------------------------------------------------------------------------------------
NET INCOME PER COMMON SHARE $ 2.15 $ 2.07 $ 1.82
-------------------------------------------------------------------------------------------
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING 22,091,411 22,162,848 22,030,853
-------------------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
-------------------------------------------------------------------------------------------------------------------------
(Dollars in Thousands, except per share amounts)
-------------------------------------------------------------------------------------------------------------------------
Additional
Common Stock Paid-In Retained Treasury
-------------------------------------------------------------------------------------------------------------------------
Shares Amount Capital Earnings Other Stock
-------------------------------------------------------------------------------------------------------------------------
BALANCE OCTOBER 30, 1992 26,660,656 $13,330 $ 547 $192,333 $(1,352) $33,171
-------------------------------------------------------------------------------------------------------------------------
Common Stock options
exercised for 65,671 shares 639 (501)
-------------------------------------------------------------------------------------------------------------------------
Purchase of 173,436 shares of
Common Stock for treasury 5,707
-------------------------------------------------------------------------------------------------------------------------
Net income for the year 40,156
-------------------------------------------------------------------------------------------------------------------------
Cash dividends on Common
Stock - $.44 per share (9,471)
-------------------------------------------------------------------------------------------------------------------------
Other 734 243 (20)
-------------------------------------------------------------------------------------------------------------------------
BALANCE OCTOBER 29, 1993 26,660,656 13,330 1,920 223,018 (1,109) 38,357
-------------------------------------------------------------------------------------------------------------------------
Common Stock options
exercised for 187,309 shares 1,667 (1,533)
-------------------------------------------------------------------------------------------------------------------------
Purchase of 150,694 shares of
Common Stock for treasury 4,997
-------------------------------------------------------------------------------------------------------------------------
Net income for the year 45,799
-------------------------------------------------------------------------------------------------------------------------
Cash dividends on Common
Stock - $.52 per share (11,252)
-------------------------------------------------------------------------------------------------------------------------
XxXxxxxxx spin-off (55,822)
-------------------------------------------------------------------------------------------------------------------------
Other 3,001 (830) (1,507) (318)
-------------------------------------------------------------------------------------------------------------------------
BALANCE OCTOBER 28, 1994 26,660,656 13,330 6,588 200,913 (2,616) 41,503
-------------------------------------------------------------------------------------------------------------------------
Common Stock options
exercised for 178,048 shares 637 (884)
-------------------------------------------------------------------------------------------------------------------------
Purchase of 113,004 shares of
Common Stock for treasury 3,607
-------------------------------------------------------------------------------------------------------------------------
Net income for the year 47,520
-------------------------------------------------------------------------------------------------------------------------
Cash dividends on Common
Stock - $.60 per share (13,121)
-------------------------------------------------------------------------------------------------------------------------
Other 3,123 49 (820) (738)
-------------------------------------------------------------------------------------------------------------------------
BALANCE OCTOBER 27, 1995 26,660,656 $13,330 $10,348 $235,361 $(3,436) $43,488
-------------------------------------------------------------------------------------------------------------------------
See Notes to Consolidated Financial Statements.
12
CONSOLIDATED STATEMENTS OF CASH FLOWS
-------------------------------------------------------------------------------------------------------------------
(Dollars in Thousands)
-------------------------------------------------------------------------------------------------------------------
October 27, October 28, October 29,
For the Year Ended 1995 1994 1993
-------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES Net income $47,520 $45,799 $40,156
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 20,318 19,134 20,648
-------------------------------------------------------------------------------------------------------------------
Provisions for:
Deferred income taxes (220) (1,552) (1,786)
-------------------------------------------------------------------------------------------------------------------
Other deferred liabilities 255 1,122 3,384
-------------------------------------------------------------------------------------------------------------------
Loss on sales or abandonment
of property, plant and equipment 396 2,357 591
-------------------------------------------------------------------------------------------------------------------
(Decrease) increase in cash due to changes
in net operating assets, net of effects
of acquired businesses:
Accounts and notes receivable (17,062) (6,444) (13,636)
-------------------------------------------------------------------------------------------------------------------
Inventories and prepaid assets 6,600 (16,575) 1,817
-------------------------------------------------------------------------------------------------------------------
Trade accounts payable and
accrued liabilities 22,052 13,936 816
-------------------------------------------------------------------------------------------------------------------
Income taxes payable 1,814 (1,323) 4,724
-------------------------------------------------------------------------------------------------------------------
Other 480 655 819
-------------------------------------------------------------------------------------------------------------------
Net Cash Provided by Operating Activities 82,153 57,109 57,533
-------------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES Purchases of property, plant
and equipment (38,982) (31,817) (17,213)
-------------------------------------------------------------------------------------------------------------------
Acquired businesses/assets, net of cash - (75,385) (1,000)
-------------------------------------------------------------------------------------------------------------------
Investments in/advances to joint ventures (1,050) (3,300) (3,484)
-------------------------------------------------------------------------------------------------------------------
Other - (1,069) (276)
-------------------------------------------------------------------------------------------------------------------
Net Cash Used in Investing Activities (40,032) (111,571) (21,973)
----------------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES Net (payments on) proceeds
from borrowings (23,488) 38,415 (21,511)
----------------------------------------------------------------------------------------------------------------------
XxXxxxxxx debt spun off - 30,086 -
----------------------------------------------------------------------------------------------------------------------
Proceeds from sale of treasury stock 1,521 4,686 1,140
----------------------------------------------------------------------------------------------------------------------
Purchase of shares of Common Stock
for treasury (3,607) (5,022) (5,759)
----------------------------------------------------------------------------------------------------------------------
Dividends paid (13,121) (11,252) (9,471)
----------------------------------------------------------------------------------------------------------------------
Other (1,131) (1,643) (13)
----------------------------------------------------------------------------------------------------------------------
Net Cash (Used in) Provided by
Financing Activities (39,826) 55,270 (35,614)
----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Cash and
Cash Equivalents 2,295 808 (54)
----------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS
AT BEGINNING OF YEAR 2,580 1,772 1,826
----------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS
AT END OF YEAR $ 4,875 $ 2,580 $1,772
----------------------------------------------------------------------------------------------------------------------
See Notes to Consolidated Financial Statements.
13
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED OCTOBER 1995, 1994 AND 1993
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
DESCRIPTION OF BUSINESS: The Company operates in one business segment, the
manufacture and distribution of paint and coatings through its Consumer
Coatings, Packaging Coatings, Industrial Coatings and Special Products Groups.
FISCAL YEAR: The Company has adopted a 4-4-5 accounting cycle with the fiscal
year ending on the Friday immediately preceding October 31.
PRINCIPLES OF CONSOLIDATION: The consolidated financial statements include the
accounts of the parent company and its subsidiaries, all of which are
wholly-owned. All material intercompany accounts, transactions and profits have
been eliminated. Investments in joint ventures in which the Company has a 20% to
50% interest are accounted for using the equity method.
CASH EQUIVALENTS: The Company considers all highly liquid instruments purchased
with a maturity of less than three months to be cash equivalents.
INVENTORIES: Inventories are stated at the lower of cost or market. Costs in the
Company's domestic coatings inventories are recorded on the last-in, first-out
(LIFO) method. The remaining inventories are recorded using the first-in,
first-out (FIFO) method.
PROPERTY, PLANT AND EQUIPMENT: Property, plant and equipment are recorded at
cost. Provision for depreciation of property is made by charges to operations at
rates calculated to amortize the cost of the property over its useful life
(twenty years for buildings; three to ten years for machinery and equipment)
primarily using accelerated methods for assets acquired prior to fiscal year
1994. All assets acquired in fiscal years 1994 and 1995 are depreciated using
the straight-line method. The result of this change on the financial statements
was not material.
INCOME TAXES: The Company provides for income taxes in accordance with Statement
of Financial Accounting Standards ("SFAS") No. 109, "Accounting for Income
Taxes." The cumulative effect of adopting SFAS No. 109 as of October 31, 1992
was to increase 1993 net income by $1,075,000 or $.05 per share. Under this
method, deferred tax assets and liabilities are determined based on differences
between financial reporting and tax bases of assets and liabilities and are
measured using the tax rates and laws enacted that will be in effect when the
differences are expected to reverse.
STOCK OPTIONS: At the time options are exercised, shares are issued from
treasury stock. The differences between the option price and the cost of the
treasury stock is charged or credited to additional paid-in capital. There have
been no charges or credits to income in connection with stock options because
all options were granted at an exercise price equal to the fair market value of
the stock on the date of grant.
EMPLOYEE BENEFIT PROGRAMS: Under the Company's Profit Sharing Plan, the Company
makes a contribution based on return on assets as defined in the Plan up to a
maximum of 10% of the aggregate compensation of eligible participants.
Under the Company's Employee Stock Ownership Trusts, substantially all of the
Company's domestic employees are eligible to participate in the Trusts and may
contribute 1% to 6% of their compensation to the Trusts. The Company contributes
an amount equal to one-half of the employee contributions.
The Company also sponsors a number of defined benefit pension plans for certain
hourly employees. Pension costs are actuarially determined and include normal
costs and amortization of prior service costs over a period of ten years. The
Company funds the domestic pension plans in amounts that meet the minimum
funding requirements prescribed by ERISA.
The Company accounts for the cost of its postretirement medical benefits in
accordance with SFAS No. 106 "Employers' Accounting for Postretirement Benefits
Other Than Pensions." The cumulative effect of adopting SFAS 106 effective
October 31, 1992 was to decrease 1993 net income by $1,024,000 (net of related
income taxes of $680,000) or $.05 per share.
The Company has a Deferred Bonus Plan for certain senior managers. Under the
Plan, participants are awarded a deferred bonus of up to 15% of salary depending
upon certain financial performance criteria.
14
In 1993 the Company established a Key Employee Bonus Plan for certain employees.
Under the Plan, participants can elect to convert all or any portion of the cash
bonus awarded under the Incentive Bonus Plan into a grant of restricted stock
receivable three years from the date of grant.
In 1991 the Company established a Leveraged Equity Purchase Plan designed to
provide key employees with loans, up to an aggregate amount of $6,000,000, to
acquire and retain Common Stock of the Company.
The Company adopted SFAS No. 112 "Employers' Accounting for Postemployment
Benefits" effective as of October 31, 1994. The adoption of the Statement did
not have a material impact on the financial statements.
NET INCOME PER SHARE: Net income per share is based on the weighted average
number of Common Shares outstanding during each year plus common stock
equivalents on dilutive stock options.
RECLASSIFICATIONS: Certain reclassifications have been reflected in the 1994 and
1993 financial statements to conform to the 1995 presentation.
NOTE B - ACQUISITION
On March 24, 1995 the Company acquired all of the Common Stock of Sunbelt
Coatings, Inc., in exchange for 339,455 shares of the Company's Common Stock.
Sunbelt is an automotive refinish coatings manufacturer. The transaction has
been accounted for as a pooling of interests, and, accordingly, the consolidated
financial statements for all periods presented have been restated to include
Sunbelt. The effect of this acquisition on the Company's financial statements
was not significant.
NOTE C - SPIN-OFF
On February 18, 1994 Valspar's wholly-owned subsidiary, XxXxxxxxx, Inc.,
purchased substantially all of the assets, consisting primarily of inventory and
fixed assets, but excluding accounts receivable, of the Resin Products Division
of Xxxxxxx, Xxxxxxxxxxxx for approximately $75 million. XxXxxxxxx'x financing
for the Resin Product Division acquisition was derived from two sources: $44
million in cash received upon collection of an intercompany balance due from
Valspar and $31 million in bank financing. Valspar utilized existing credit
facilities to finance payment of the intercompany balance owed to XxXxxxxxx.
Immediately after the acquisition, XxXxxxxxx, Inc., was merged into XxXxxxxxx
Technologies, Inc. ("XxXxxxxxx"), with the surviving corporation remaining a
wholly-owned subsidiary of the Company.
At the close of business on April 29, 1994, all of the assets of the Resin
Products Division and the assets and liabilities of XxXxxxxxx'x operations
located in Philadelphia, Pennsylvania; Carpentersville, Illinois; and Portland,
Oregon were distributed to the Valspar shareholders in the form of a stock
dividend of one share of XxXxxxxxx Common Stock for every two shares of Valspar
Common Stock. Prior to the distribution, XxXxxxxxx transferred to Valspar resin
assets located at facilities in Los Angeles, California; Rockford and Kankakee,
Illinois; and Garland, Texas.
The significant assets and liabilities of XxXxxxxxx at the date of spin-off were
as follows:
ASSETS: Accounts receivable $40,386
Inventory 21,435
Other assets 3,734
Property, plant,
and equipment (net) 69,523
LIABILITIES: Notes to bank (12,700)
Accounts payable (22,382)
Accrued liabilities (11,250)
Long-term debt (30,086)
Other liabilities (2,838)
-------
NET ASSETS $55,822
-------
15
The following supplemental unaudited consolidated pro-forma information shows
condensed results of operations as though the XxXxxxxxx spin-off had occurred at
the beginning of fiscal 1993. The pro-forma data is provided for information
purposes only and does not purport to be indicative of the future results or
financial position of Valspar (or what the results of operations or financial
position would have been had the XxXxxxxxx spin-off occurred as described
above).
Pro-Forma Condensed Statements
of Income (Unaudited)
--------------------------------------------------------------------------------
(In Thousands except per share amounts)
Year Ended October 28, 1994
--------------------------------------------------------------------------------
Historical Adjustments(a) Pro-Forma
--------------------------------------------------------------------------------
Net sales $795,275 $ (63,045) $732,230
Cost of sales 569,063 (51,853) 517,210
--------------------------------------------------------------------------------
Gross profit 226,212 (11,192) 215,020
Research and
development 27,430 (1,261) 26,169
Selling and
administrative 119,253 (4,431) 114,822
--------------------------------------------------------------------------------
Income from
operations 79,529 (5,500) 74,029
Other expense
(income), net 631 (2,538) (1,907)
Interest expense 2,504 214 2,718
--------------------------------------------------------------------------------
Income before
income taxes 76,394 (3,176) 73,218
Income taxes 30,595 (1,230) 29,365
--------------------------------------------------------------------------------
Net income $ 45,799 $ (1,946) $ 43,853
--------------------------------------------------------------------------------
Earnings per share $ 2.07 $ 1.98
--------------------------------------------------------------------------------
Total assets $367,608 $367,608
--------------------------------------------------------------------------------
Year Ended October 29, 1993
--------------------------------------------------------------------------------
Historical Adjustments(a) Pro-Forma
--------------------------------------------------------------------------------
Net sales $700,897 $ (43,212) $657,685
Cost of sales 501,135 (31,598) 469,537
--------------------------------------------------------------------------------
Gross profit 199,762 (11,614) 188,148
Research and
development 24,955 (858) 24,097
Selling and
administrative 105,042 (4,203) 100,839
--------------------------------------------------------------------------------
Income from
operations 69,765 (6,553) 63,212
Other expense 2,036 (72) 1,964
Interest expense 1,645 1,010 2,655
--------------------------------------------------------------------------------
Income before
income taxes 66,084 (7,491) 58,593
Income taxes 25,928 (2,625) 23,303
--------------------------------------------------------------------------------
Net income $ 40,156 $ (4,866) $ 35,290
--------------------------------------------------------------------------------
Earnings per share $ 1.82 $ 1.60
--------------------------------------------------------------------------------
Total assets $340,479 $ (59,993) $280,486
--------------------------------------------------------------------------------
(a) To eliminate the revenue and expenses of XxXxxxxxx for the respective
periods presented, as if the spin-off had occurred on October 31, 1992.
NOTE D - INVENTORIES
The major classes of inventories consist of the following:
--------------------------------------------------------------------------------
October 27, October 28,
(Dollars in Thousands) 1995 1994
--------------------------------------------------------------------------------
Manufactured products $46,284 $51,614
Raw materials, supplies and
work-in-process 30,609 32,462
--------------------------------------------------------------------------------
$76,893 $84,076
--------------------------------------------------------------------------------
Inventories stated at cost determined by the last-in, first-out (LIFO) method
aggregate $73,957,000 at October 27, 1995 and $78,593,000 at October 28, 1994,
approximately $30,046,000 and $23,953,000 lower, respectively, than such costs
determined under the first-in, first-out (FIFO) method.
16
NOTE E - TRADE ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Trade accounts payable at October 27, 1995 include $12,400,000 of issued checks
which had not cleared the Company's bank accounts.
Accrued liabilities include the following:
--------------------------------------------------------------------------------
October 27, October 28,
(Dollars in Thousands) 1995 1994
--------------------------------------------------------------------------------
Employee compensation $26,305 $27,739
Contribution to employees'
retirement trusts 4,995 4,790
Customer volume rebates 8,431 5,248
Other 22,988 22,864
--------------------------------------------------------------------------------
$62,719 $60,641
--------------------------------------------------------------------------------
NOTE F - LONG-TERM DEBT AND CREDIT ARRANGEMENTS
Long-term debt consists of the following:
--------------------------------------------------------------------------------
October 27, October 28,
(Dollars in Thousands) 1995 1994
--------------------------------------------------------------------------------
Short-term notes to banks
(7.27% at
October 27, 1995) $ 6,575 $32,528
Industrial development
bonds (4.10% at
October 27, 1995) 12,500 -
Obligations under capital
lease (7.48% at
October 27, 1995) 2,806 3,018
Other 10 121
--------------------------------------------------------------------------------
21,891 35,667
--------------------------------------------------------------------------------
Less current maturities (233) (324)
--------------------------------------------------------------------------------
$21,658 $35,343
--------------------------------------------------------------------------------
The Company has $150,000,000 available under a revolving credit loan agreement
with banks at optional interest rates of prime, or LIBOR-based or CD-based
rates. The revolving credit loan facility matures in 2000. The revolving credit
loan agreement contains covenants which require the Company to maintain certain
financial ratios. The Company is in compliance with these covenants as of
October 27, 1995.
Maturities of long-term debt are as follows: 1996 - $233,000; 1997 - $246,000;
1998 - $264,000; 1999 - $285,000 and $20,630,000 thereafter.
Under other short-term bank lines of credit, the Company may borrow up to
$136,030,000 on such terms as the Company and the banks may mutually agree.
These arrangements are reviewed periodically for renewal and modification.
Borrowings under these short-term notes had an average annual rate of 5.19% in
fiscal 1995 and 4.53% in fiscal 1994.
Borrowings under the Canadian short-term bank lines in the amount of $6,575,000
at October 27, 1995 have been classified as long-term debt reflecting the
Company's ability to refinance these amounts during the subsequent fiscal year.
The Company had unused lines of credit under the short-term bank lines and
revolving credit facility of $280,741,000 at October 27, 1995.
The Company obtained $12,500,000 in Industrial Revenue Bond (IRB) financing for
its plant construction projects in Statesville, North Carolina and Marengo,
Illinois. These bonds have variable rates of interest and mature in 2015.
Interest paid during 1995, 1994 and 1993 was $3,783,000, $2,473,000 and
$1,647,000, respectively.
17
NOTE G - COMMON STOCK OPTIONS
Under the 1991 Stock Option Plan, options for the purchase of 1,000,000 shares
of Common Stock may be granted to officers and key employees. Under the prior
stock option plans (1982 Incentive Stock Option Plan and 1989 Non-Qualified
Stock Option Plan), options were also granted to officers and key employees.
Options issued under the 1982 and 1989 plans are fully exercised. The Company
has elected to grant all future options under the 1991 Stock Option Plan.
Options are exercisable in full or in part at the date of grant. Activity for
the two years ended October 27, 1995 is summarized as follows:
--------------------------------------------------------------------------------
Shares Options Option Price
Reserved Outstanding Per Share
--------------------------------------------------------------------------------
Balance
October 30, 1993 734,212 423,423 $ 9.48 - $28.64
Granted (148,800) 148,800 29.63 - 34.38
Exercised (187,309) 9.48 - 29.63
Canceled 32,440 (32,440) 9.48 - 29.63
Adjustment for
XxXxxxxxx
spin-off (75,851) 75,851
--------------------------------------------------------------------------------
Balance
October 28, 1994 542,001 428,325 11.60 - 29.63
Granted (176,295) 176,295 34.50 - 36.63
Exercised (95,012) 11.60 - 34.50
Canceled 12,589 (12,589) 15.11 - 34.50
--------------------------------------------------------------------------------
Balance
October 27, 1995 378,295 497,019 $11.60 - $36.63
--------------------------------------------------------------------------------
The balance of 497,019 options outstanding at October 27, 1995 includes 473,907
non-qualified options.
The impact of the XxXxxxxxx spin-off on April 29, 1994 on both the option price
and number of shares is reflected above.
NOTE H - INCOME TAXES
Significant components of the provision for income taxes are as follows:
--------------------------------------------------------------------------------
(Dollars in Thousands)
--------------------------------------------------------------------------------
October 27, October 28, October 29,
Year Ended 1995 1994 1993
--------------------------------------------------------------------------------
Current
Federal $26,009 $25,905 $24,431
State 5,681 5,761 4,393
Foreign 218 481 653
--------------------------------------------------------------------------------
Total current 31,908 32,147 29,477
--------------------------------------------------------------------------------
Deferred
Federal (93) (1,296) (1,301)
State (9) (209) (427)
Foreign (118) (47) (58)
--------------------------------------------------------------------------------
Total deferred (220) (1,552) (1,786)
--------------------------------------------------------------------------------
Cumulative tax effect
of changes in accounting
Methods for:
Income taxes (1,075)
Postretirement benefits (688)
--------------------------------------------------------------------------------
Total cumulative effect (1,763)
--------------------------------------------------------------------------------
Total income taxes $31,688 $30,595 $25,928
--------------------------------------------------------------------------------
Significant components of the Company's deferred tax assets and liabilities are
as follows:
--------------------------------------------------------------------------------
October 27, October 28,
(Dollars in Thousands) 1995 1994
--------------------------------------------------------------------------------
Deferred tax assets:
Product liability accruals $ 2,205 $ 2,097
Insurance reserves 2,350 2,216
Deferred compensation 2,266 1,721
Workers' compensation
reserves 3,383 3,171
Employee compensation
reserve 2,061 2,075
Other 8,025 6,184
--------------------------------------------------------------------------------
Total deferred tax assets 20,290 17,464
--------------------------------------------------------------------------------
Deferred tax liabilities:
Tax over book
depreciation (10,197) (8,387)
Other (3,726) (2,930)
--------------------------------------------------------------------------------
Total deferred
tax liabilities (13,923) (11,317)
--------------------------------------------------------------------------------
Net deferred tax assets $ 6,367 $ 6,147
--------------------------------------------------------------------------------
18
The reconciliation of income tax computed at the United States Federal statutory
tax rates to income tax expense is as follows:
--------------------------------------------------------------------------------
1995 1994 1993
--------------------------------------------------------------------------------
Tax at United States
statutory rates 35.0% 35.0% 34.8%
State income taxes,
net of Federal benefit 4.7% 4.7% 3.8%
Other 0.3% 0.2% 1.8%
FAS 109
implementation (1.6)%
--------------------------------------------------------------------------------
40.0% 39.9% 38.8%
--------------------------------------------------------------------------------
Income taxes paid during 1995, 1994 and 1993 were $29,989,000, $33,530,000 and
$24,692,000, respectively.
NOTE I - RETIREMENT BENEFIT PROGRAMS
The Company's primary retirement benefit programs are its defined contribution
plans. Contributions to the Profit Sharing Plan totaled $7,552,000, $7,045,000,
and $6,911,000, for 1995, 1994, and 1993, respectively. The Company's
contributions to the Employee Stock Ownership Plans were $2,145,000, $1,950,000,
and $2,055,000, for 1995, 1994, and 1993, respectively.
The Company also sponsors a number of defined benefit pension plans for certain
hourly employees. The related pension costs are not significant. On January 1,
1995 the Company merged 11 of its pension plans into one previously existing
plan. The funded status of all pension plans using a 7.0% discount rate in 1995
and a 7.5% discount rate in 1994 is as follows:
--------------------------------------------------------------------------------
Overfunded Underfunded
(Dollars in Thousands) Plan Plan
--------------------------------------------------------------------------------
OCTOBER 27, 1995
Plan assets at fair value $16,903 $4,211
Accumulated benefit
obligation 14,804 4,247
--------------------------------------------------------------------------------
Plan assets in excess of
(less than) accumulated
benefit obligation 2,099 (36)
--------------------------------------------------------------------------------
OCTOBER 28, 1994
Plan assets at fair value $5,721 $10,473
Accumulated benefit
obligation 3,691 12,565
--------------------------------------------------------------------------------
Plan assets in excess of
(less than) accumulated
benefit obligation $2,030 $(2,092)
--------------------------------------------------------------------------------
NOTE J - OTHER POSTRETIREMENT BENEFIT PLANS
In addition to the Company's defined benefit pension plans, the Company sponsors
a health care plan that provides postretirement medical benefits for some of its
employees.
The Company's accrued postretirement benefit liability of $1,629,000 is equal to
its accumulated postretirement benefit obligation at October 27, 1995. Net
periodic postretirement expense for the year ended October 27, 1995 and October
28, 1994 was $142,000 and $187,000, respectively.
The weighted-average discount rate used in determining the accumulated
postretirement benefit obligation at October 27, 1995 was 7.5%.
NOTE K - QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
The following is a tabulation of the unaudited quarterly results for the years
ended October 27, 1995 and October 28, 1994:
--------------------------------------------------------------------------------
(Dollars in Thousands)
--------------------------------------------------------------------------------
Net
Gross Net Income
Net Sales Margin Income Per Share
--------------------------------------------------------------------------------
1995 Quarter Ended:
January 27 $163,220 $ 43,089 $ 5,379 $ .24
April 28 205,041 58,437 12,168 .55
July 28 216,310 64,226 15,473 .70
October 27 205,604 63,253 14,500 .66
--------------------------------------------------------------------------------
$790,175 $229,005 $47,520 $2.15
--------------------------------------------------------------------------------
1994 Quarter Ended:
January 28 $149,802 $ 40,316 $ 4,433 $ .20
April 29 248,081 66,046 14,399 .65
July 29 203,302 60,371 14,674 .66
October 28 194,090 59,479 12,293 .56
--------------------------------------------------------------------------------
$795,275 $226,212 $45,799 $2.07
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
19
