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               UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C. 20549
 
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                                   FORM 10-Q
 
[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)15(d) OF THE SECURITIES EXCHANGE
                                  ACT OF 1934
 
               FOR THE QUARTERLY PERIOD ENDED JUNESEPTEMBER 30, 1995
 
                                      OR
 
[_]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D)15(d) OF THE SECURITIES 
                             EXCHANGE ACT OF 1934
 
                FOR THE TRANSITION PERIOD FROM        TO
 
                         COMMISSION FILE NUMBER 1-7665
 
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                                 LYDALL, INC.
            (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
 
               DELAWARE                              06-0865505
                                                  (I.R.S. EMPLOYER
    (STATE OR OTHER JURISDICTION OF              (I.R.S. EMPLOYERIDENTIFICATION NO.)
    INCORPORATION OR ORGANIZATION)               IDENTIFICATION NO.)
 
   ONE COLONIAL ROAD, P. O. BOX 151,                 06045-0151
        MANCHESTER, CONNECTICUT                      (ZIP CODE)
    (ADDRESS OF PRINCIPAL EXECUTIVE
               OFFICES)
 
                                (203) 646-1233
             (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
 
                                     NONE
  (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 (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
                                                    ___---     ---
 
  Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
 
                                        
         Common stock $.10 par value per share.
         Total shares outstanding AugustNovember 8, 1995  17,255,35617,289,988
- ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- LYDALL, INC. INDEX
PAGE NO. -------- Part I. Financial Information Item 1. Financial Statements Consolidated Condensed Balance Sheets............................. 2 Consolidated Condensed Statements of Income....................... 3-4 Consolidated Condensed Statements of Cash Flows................... 5 Notes to Consolidated Condensed Financial Statements.............. 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations................................... 6-8Operations..................................... 7-8 Part II. Other Information Item 4. Submission of Matters to a Vote of Security Holders......... 8 Item 6. Exhibits and Reports on Form 8-K............................ 8 Signature............................................................. 9
1 PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS LYDALL, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (IN THOUSANDS)
JUNESEPTEMBER 30, DECEMBER 31, 1995 1994 --------------------- ------------ (UNAUDITED) ASSETS Current assets: Cash and cash equivalents..............................equivalents.......................... $ 16,55422,417 $ 11,684 Short-term investments................................. 3,117investments............................. 2,993 2,904 Accounts receivable, net............................... 35,220net........................... 35,769 31,825 Inventories: Finished goods....................................... 7,426goods................................... 6,450 5,423 Work in process...................................... 3,478process.................................. 3,724 2,941 Raw materials and supplies........................... 8,584supplies....................... 7,910 6,822 LIFO reserve......................................... (2,103)reserve..................................... (2,420) (1,659) -------- -------- Total inventories...................................... 17,385inventories.................................. 15,664 13,527 Prepaid expenses....................................... 845expenses................................... 769 662 Deferred tax asset..................................... 3,496asset................................. 3,503 3,485 -------- -------- Total current assets................................. 76,617assets............................. 81,115 64,087 -------- -------- Property, plant and equipment, at cost................... 100,253cost............... 103,293 94,431 Less accumulated depreciation............................ (43,069)depreciation........................ (44,763) (39,660) -------- -------- 57,18458,530 54,771 Other assets, at cost, less amortization................. 16,572amortization............. 15,733 17,755 -------- -------- $150,373$155,378 $136,613 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt......................debt.................. $ 2,8652,866 $ 2,843 Accounts payable....................................... 17,345payable................................... 17,457 17,032 Accrued payroll and other compensation................. 5,215compensation............. 5,341 5,420 Accrued taxes.......................................... 978taxes...................................... 1,538 2,196 Other accrued liabilities.............................. 8,422liabilities.......................... 6,934 5,773 -------- -------- Total current liabilities............................ 34,825liabilities........................ 34,136 33,264 Long-term debt........................................... 7,839debt....................................... 7,794 10,607 Deferred tax liabilities................................. 12,442liabilities............................. 12,931 11,752 Pensions and other long-term liabilities................. 4,954liabilities............. 4,873 4,763 Stockholders' equity: Preferred stock........................................stock.................................... -- -- Common stock........................................... 2,083stock....................................... 2,084 1,013 Capital in excess of par value......................... 32,070value..................... 32,156 31,419 Retained earnings...................................... 67,201earnings.................................. 72,648 56,023 Pension liability adjustment........................... (504)adjustment....................... (485) (547) Foreign currency translation adjustment................ 2,282adjustment............ 2,060 1,138 -------- -------- 103,132108,463 89,046 Less: treasury stock, at cost..........................cost...................... (12,819) (12,819) -------- -------- Total stockholders' equity........................... 90,313equity....................... 95,644 76,227 -------- -------- $150,373$155,378 $136,613 ======== ========
See accompanying Notes to Consolidated Condensed Financial Statements. 2 LYDALL, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF INCOME (IN THOUSANDS EXCEPT PER-SHARE DATA)
THREE MONTHS ENDED JUNESEPTEMBER 30, -------------------- 1995 1994 --------- --------- (UNAUDITED) Net sales................................................ $ 65,55261,487 $ 53,55654,446 Cost of sales............................................ 45,528 37,50942,572 38,058 --------- --------- Gross margin............................................. 20,024 16,04718,915 16,388 Selling, product development and administrative expenses. 10,456 8,8649,643 9,329 --------- --------- Operating income......................................... 9,568 7,1839,272 7,059 Other (income) expense Investment income...................................... (198) (71)(288) (95) Interest expense....................................... 191 255200 240 Other, net............................................. (54) 541123 309 --------- --------- (61) 72535 454 --------- --------- Income before income taxes............................... 9,629 6,4589,237 6,605 Income tax expense....................................... 3,757 2,7003,790 2,727 --------- --------- Net income............................................... $ 5,8725,447 $ 3,7583,878 ========= ========= Net income per common and common equivalent share*....... $ .32.30 $ .21 ========= ========= Weighted average common stock and equivalents outstand- ing*.................................................... 18,293 17,898outstanding*............................................ 18,418 18,057 ========= =========
- -------- * 1994 restated to reflect a two-for-one stock split distributed June 21, 1995. See accompanying Notes to Consolidated Condensed Financial Statements. 3 LYDALL, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF INCOME (IN THOUSANDS EXCEPT PER-SHARE DATA)
SIXNINE MONTHS ENDED JUNESEPTEMBER 30, ------------------ 1995 1994 -------- -------- (UNAUDITED) Net sales.................................................... $128,288 $101,672sales................. $189,775 $156,118 Cost of sales................................................ 89,038 70,480sales............. 131,610 108,538 -------- -------- Gross margin................................................. 39,250 31,192margin.............. 58,165 47,580 Selling, product development and administrative expenses..... 20,719 17,449expenses.. 30,362 26,778 -------- -------- Operating income............................................. 18,531 13,743income.......... 27,803 20,802 Other (income) expense Investment (income), expense............................... (430) 32income....... (718) (63) Interest expense........................................... 455 515expense........ 655 755 Other, net................................................. 170 712net.............. 293 1,021 -------- -------- 195 1,259230 1,713 -------- -------- Income before income taxes................................... 18,336 12,484taxes.................... 27,573 19,089 Income tax expense........................................... 7,158 5,198expense........ 10,948 7,925 -------- -------- Net income...................................................income................ $ 11,17816,625 $ 7,28611,164 ======== ======== Net income per common and common equivalent share*............ $ .61.91 $ .41.62 ======== ======== Weighted average common stock and equivalents outstanding*... 18,218 17,841............. 18,285 17,913 ======== ========
- -------- * 1994 restated to reflect a two-for-one stock split distributed June 21, 1995. See accompanying Notes to Consolidated Condensed Financial Statements. 4 LYDALL, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (IN THOUSANDS)
SIXNINE MONTHS ENDED JUNESEPTEMBER 30, ----------------------------------- 1995 1994 --------------- -------- (UNAUDITED) Cash flows from operating activities: Net income................................................ $11,178 $ 7,28616,625 $ 11,164 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation............................................ 3,687 3,087 Amortization............................................ 763 650Depreciation............................................. 5,602 4,752 Amortization............................................. 1,134 1,033 Changes in operating assets and liabilities, excluding effects from acquisitions:acquisition: Accounts receivable................................... (2,992) (3,484) Inventories........................................... (3,593) (468)receivable..................................... (3,585) (6,420) Inventories............................................. (1,922) (1,512) Other assets.......................................... 282 55assets............................................ 378 404 Accounts payable...................................... 43 2,975payable........................................ 191 5,009 Accrued taxes......................................... (1,285) (64)taxes........................................... (715) 130 Accrued payroll and other compensation................ (232) (187)compensation.................. (102) 774 Deferred income taxes................................. 384 407taxes................................... 906 613 Other long-term liabilities........................... 65 (215)liabilities............................. 9 (127) Other accrued liabilities............................. 2,614 2,247 -------liabilities............................... 1,136 3,280 -------- -------- Total adjustments....................................... (264) 5,003 -------adjustments......................................... 3,032 7,936 -------- -------- Net cash provided by operating activities................... 10,914 12,289 ------- --------activities.................. 19,657 19,100 Cash flows from investing activities: Purchase of assets of Columbus and Jacksonville Opera- tions....................................................Operations............................................... -- (16,836)(16,843) Additions of property, plant & equipment.................. (5,228) (1,708) Purchase of short-term investments, net................... (208) (1,852)(8,726) (5,072) Disposals of property, plant & equipment, net............. 380 100 -------406 561 (Purchase) Sale of short-term investments, net............ 382 (2,162) -------- -------- Net cash used for investing activities...................... (5,056) (20,296) -------activities..................... (7,938) (23,516) -------- -------- Cash flows from financing activities: Long-term debt repayments................................. (2,777) (2,260)(2,816) (2,691) Issuance of common stock.................................. 1,721 268 -------1,808 341 -------- -------- Net cash used for financing activities...................... (1,056) (1,992) -------activities..................... (1,008) (2,350) -------- -------- Effect of exchange rate changes on cash..................... 68 78 -------cash.................... 22 135 -------- -------- (Decrease) Increase (decrease) in cash and cash equivalents............ 4,870 (9,921)equivalents........... 10,733 (6,631) Cash and cash equivalents at beginning of period............period........... 11,684 13,820 --------------- -------- Cash and cash equivalents at end of period.................. $16,554period................. $ 3,899 =======22,417 $ 7,189 ======== ======== Supplemental Scheduleschedule of Cash Flow Information:cash flow information: Cash paid during the period for: Interest..................................................Interest................................................. $ 550556 $ 489536 Income taxes.............................................. 8,007 5,365taxes............................................. 10,977 7,437 Non-cash transactions: Note issued to purchase assets of Columbus operation......operation..... -- 2,250 Reclassification ofbetween short-term and long-term investments, to long-term, net...................................................... -- 1,988net........................................ 447 1,966 Effect on Additional Paid in Capital and Common Stock for stock split effected in the form of a stock dividend.....dividend.... 1,041 --
See accompanying Notes to Consolidated Condensed Financial Statements. 5 LYDALL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS 1. The accompanying consolidated condensed financial statements include the accounts of Lydall, Inc. and its wholly owned subsidiaries. All financial information is unaudited for interim periods reported. All significant intercompany transactions have been eliminated in the consolidated condensed financial statements. Management believes that all adjustments, which include only normal recurring accruals, necessary to present a fair statement of the financial position and results of the periods have been included. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles. Certain prior year information has been reclassified to conform with the current year presentation format with no impact on net income or working capital. 2. Earnings per common share are based on the weighted average number of common shares outstanding during the period, including the effect of stock options, stock awards and warrants where such effect would be dilutive. Fully diluted earnings per share are not presented since the dilution is not material. 3. In the mid-1980's, the United States Environmental Protection Agency ("EPA") notified a former subsidiary of the Company that it and other entities may be potentially responsible in connection with the release of hazardous substances at a landfill and property located adjacent to a landfill located in Michigan City, Indiana. The two sites have been combined and are viewed by the EPA as one site. The preliminary indication, based on the Site Steering CommitteesCommittee's volumetric analysis, is that the alleged contribution to the waste volume at the site of the plant once owned by a former subsidiary is approximately 0.434 percent of the total volume. The portion of the 0.434 percent specifically attributable to the former subsidiary by the current operator of the plant is approximately 0.286 percent.percent of the total waste volume at the site. There are over 800 potentially responsible parties ("prp") which have been identified by the Site Steering Committee. Of these, 38, not including the Company's former subsidiary, are estimated to have contributed over 80 percent of the total waste volume at the site. These prp's include Fortune 500 companies, public utilities, and the State of Indiana. The Company believes that, in general, these parties are financially solvent and should be able to meet their obligations at the site. The Company has reviewed the financial statements and credit reports on several of these prp's, and based on these financial reports, does not believe the Company will have any material additional volume attributed to it for reparation of this site due to insolvency of other prp's. During the quarter ended September 30, 1994, the Company learned that the EPA recently completed its Record of Decision ("ROD") for the Michigan City site and has estimated the total cost of remediation to be between $17 million and $22 million. In June of 1995, the Company and its former subsidiary were sued in the Northern District of Indiana by another prpthe insurer of the current operator of the former subsidiary's plant, seeking contribution. Based on the alleged contribution of its former subsidiary to the site, the Company's alleged total exposure of less than $100 thousand has been accrued. Management believes the ultimate disposition of this matter will not have a material adverse effect upon the Company's consolidated financial position or results of operations. 4. On May 10, 1995, the Board of Directors of Lydall declared a two-for-one stock split effected in the form of a stock dividend. The record date for the stock split was May 24, 1995. The distribution of common shares was made on June 21, 1995. To record the effect of the stock split $1.0 million was reclassified from Capital in Excess of Par Value to Common Stock. Share and per share amounts prior to the 1995 stock split have been restated to reflect the two-for-one stock split. 6 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. RESULTS OF OPERATIONS:OPERATIONS For the secondthird quarter ended JuneSeptember 30, 1995, sales were $65.6$61.5 million compared with $53.6$54.4 million for the same quarter last year, a 2213 percent increase. Net income was $5.9$5.4 million compared with $3.9 million--up 40 percent. On a per-share basis, the Company earned $.30 in the third quarter of 1995 compared with $.21 in the same period last year--a 43 percent increase. Gross margin in the quarter was $18.9 million, or $.32 a30.8 percent of sales, and after-tax return on sales was 8.9 percent. For the 1994 period, gross margin was $16.4 million, or 30.1 percent of sales, and after-tax return on sales was 7.1 percent. Sales for the nine months ended September 30, 1995, were $189.8 million compared with $156.1 million-- up 22 percent. Net income was $16.6 million, or $.91 per share, compared with $3.8 6 $11.2 million, or $.21 a$.62 per share--a 56 percent increase in net income with a 5247 percent increase in earnings per share. After-taxGross margin was $58.2 million, or 30.6 percent of sales, for the nine months ended September 30, 1995, and the after- tax return on sales forwas 8.8 percent. For the quarter1994 nine-month period, gross margin was a record 9 percent compared with 7 percent for the same period last year. Sales for the six months ended June 30, 1995 were $128.3 million compared with $101.7 million for the same period in 1994--up 26 percent. Net income was $11.2$47.6 million, or $.61 per share, for30.5 percent of sales, and the six months ended June 30, 1995 compared with net income of $7.3 million, or $.41 per share, for the same period in 1994--a 53 percent increase in net income, while earnings per share increased by 49 percent. Returnafter-tax return on sales after tax, for the six months ended June 30, 1995 was 8.7 percent compared with 7.2 percent for the corresponding period ended June 30, 1994.percent. Sales and net income for all of 1995 included results from both the Jacksonville, Florida and Columbus, Ohio Operations which were acquired during 1994. Results for 1994 included only fourseven months of results from the Columbus Operation and no resultsthree months from the Jacksonville Operation, which was acquired at the end of June. Gross margins remained relatively constant, between 30 and 31 percent, for the three months and six months ended June 30, 1995 and 1994. Lydall continued to do well in all of its markets. International sales growth, including foreign and exports, continued to outpace overall sales growth and was up 37 percent in the second quarter compared with the same quarter last year. The materials-handling business remained strong, both domestically and overseas. Sales of high-efficiency air filtration media have also been strong around the world. Lydall's facility in France increased its production of air filtration media during the period both for consumption in Europe and for export to the United States. Global capacity is particularly significant to Lydall in this important market. Thermal barrier products sold to the automotive market continued to perform well. Lydall has not experienced any slowdown in automotive sales which are driven by increasing heat management applications. Also, a significant portion of the heat-shield business is in sport-utility vehicles, vans, and light-duty trucks, sales of which are growing steadily. In addition, Lydall's battery insulating program is on target, and this product is now approved for virtually every Ford vehicle, including 1996 and 1997 models. In other thermal areas, growth in industrial applications, particularly sales of commercial building materials and architectural components was strong. Demand for cryogenic insulating products also continued at a strong pace.Operation. Selling, new product development and administrative expenses increased 18.7%13.4% in the first sixnine months of the year versus the same period in 1994. As a percentage of sales however, these expenses decreased to 16.2%16.0% in 1995 from 17.2% in 1994. The Company anticipates that these expenses will remain at theapproximately 16 to 17 percent level through the end of the year. Despite a slight slowing of economic growth, demand was steady in most of our markets. International sales, up by 29 percent year-to-date, continued to outpace the growth of domestic sales during the quarter. We saw solid growth in our materials-handling slipsheet and thermal barrier businesses. In the thermal area, sales for automotive and cryogenic applications were particularly strong. Sales of high-efficiency air filtration media continued to be robust both domestically and abroad fueled by the intensity of the semiconductor market. Capital spending in the industry is the highest it has ever been and is forecast to stay at these levels through 1997. This, together with the increasing use of clean rooms in more and more industrial applications, bode well for future growth of Lydall's air filtration product line. During the second quarter, Lydall received certain tangible and intangible assets as a result of a mediated settlement between the Company and Baxter Healthcare. Included in Other Income, theThe amount of the settlement and details are confidential under the terms of the agreement.agreement and are recorded in other income. Although this ends the relationship with Baxter, development of Lydall's leukocyte depletion media continues. Hemasure, Inc. announced that its LeukoNet Pre-Storage Leukoreduction Filtration System, which incorporates Lydall's media, has been cleared for marketing by the U.S.U. S. Food and Drug Administration. The Company does not expect the Hemasure announcement to have a material impact on 1995 results. The Company's effectiveDuring the third quarter 1995, the French government enacted a tax increase which had the effect of increasing our Axohm Division's tax rate decreasedfrom 33.3 percent to 36.6 percent, effective January 1, 1995. Domestic U.S. rates were reduced during the year due to several factors including stronger export sales resulting in a favorable Foreign Sales Corporation benefit and the settlement of Internal Revenue Service audits. The Internal Revenue Service is currently examining Lydall's federal income tax returnseffect of these events resulted in an estimated ongoing effective rate of approximately 39.0 percent for 1990 through 1992. Management believes that the ultimate resolution of the examinations will not have a material effect upon the consolidated earnings and financial position of the Company. Tax assessments, if any, as a result of the examination are expected to be funded by cash balances or cash generated from operations. 7 LIQUIDITY AND CAPITAL RESOURCES: On JuneSeptember 30, 1995, Lydall closed with $19.7$25.4 million in cash, cash equivalents and short-term investments compared with $14.6 million at December 31, 1994. During the first sixnine months of 1995, the Company repaid $3.3$3.4 million of long term debt and accrued interest. This payment, along with normal payments 7 for taxes and capital expenditures, was made with cash generated from operations and cash on hand. Increased levels of accounts receivable and inventories are directly attributable to higher sales levels. Operating cash flow (earnings before taxes, interest expense and investment income or expense plus depreciation and amortization) was $11.9$11.4 million in the quarter bringing operating cash flow year-to-date to $22.8$34.2 million. This compares to $8.6$8.8 million for the quarter and $16.8$25.6 million year to date in 1994. The current ratio increased to 2.202.38 from 1.93; total debt to total capitalization was .11.10 versus .15; and debt to equity was .12.11 versus .18 when comparing JuneSeptember 30, 1995 with December 31, 1994, respectively. The Company expects to continue to finance its day to day operating needs from accumulated cash plus cash from operations. Lydall continues to actively seek strategic acquisitions and to reinvest in the Company with the primary focus on the ongoing comprehensive quality program. PART II. OTHER INFORMATION ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS The Company's Annual Meeting of Stockholders was held on May 10, 1995. In addition to the election of directors, stockholders approved an Amendment to the Certificate of Incorporation to increase the number of authorized common stock shares. The proposals were approved by the stockholders as follows:
WITHHOLD BROKER FOR AGAINST ABSTAIN AUTHORITY NONVOTES --------- ------- ------- --------- -------- 1. Approval of amendment to the Certificate of Incorporation.. 6,111,086 445,426 36,241 -- -- 2. Election of Nominees to the Board of Directors Lee A. Asseo.................. 6,574,474 -- -- 18,279 -- Paul S. Buddenhagen........... 6,574,474 -- -- 18,279 -- Carole F. Butenas............. 6,574,474 -- -- 18,279 -- Samuel P. Cooley.............. 6,574,474 -- -- 18,279 -- W. Leslie Duffy............... 6,567,447 -- -- 25,306 -- Leonard R. Jaskol............. 6,574,474 -- -- 18,279 -- William P. Lyons.............. 6,568,482 -- -- 24,271 -- William J. Rankin............. 6,574,474 -- -- 18,279 -- Joel Schiavone................ 6,567,155 -- -- 25,598 -- Roger M. Widmann.............. 6,574,474 -- -- 18,279 -- Albert E. Wolf................ 6,568,482 -- -- 24,271 --
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits 4.1 --Amendment of Incorporation of Lydall, Inc. dated August 14, 1995, (filed as Exhibit 3.1 to the registrants Annual Report on Form 10K dated March 28, 1994, and incorporated herein by this reference). 4.2 --Bylaws of Lydall Inc. (filed as Exhibit 3.2 to the registrant's Registration Statement on Form 8-B dated October 16, 1987 and incorporated herein by this reference). 11.1 --Schedule of Computation of Weighted Average Shares Outstanding 27.1 --Financial Data Schedule
(b) Reports on Form 8-K The Company did not file any reports on Form 8-K during the quarterthree months ended JuneSeptember 30, 1995. 8 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. Lydall, Inc. (Registrant) /s/ John E. Hanley By __________________________________ JOHN E. HANLEY Vice President-FinancePresident--Finance and Treasurer (Principal Accounting and Financial and Accounting Officer) August 8,November 9, 1995 9 LYDALL, INC. Index to Exhibits Exhibit No. Page No. - ------- --------------- -------- 4.1 Amendment of Incorporation of Lydall, Inc. 14 11.1 Schedule of Computation of Weighted Average Shares Outstanding 16 13