FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended July 30, 1994
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission file number 1-5452
ONEIDA LTD.
(Exact name of Registrant as specified in its charter)
NEW YORK 15-0405700
(State or other jurisdiction of I.R.S. Employer
incorporation or organization) Identification No.
ONEIDA, NEW YORK 13421
(Address of principal executive offices) (Zip code)
315-361-3636
(Registrant's telephone number, including area code)
NOT APPLICABLE
(Former name, former address and former fiscal period, 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 August 27, 1994.
10,883,450
ONEIDA LTD
FOR THE SIX MONTHS ENDED JULY 30, 1994
FORM 10-Q
INDEX
PART I FINANCIAL INFORMATION:
Consolidated Statement of Operations
Consolidated Balance Sheet
Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
Management's Discussion and Analysis of Financial
Condition and Results of Operations
PART II OTHER INFORMATION
No other information required to be filed
for this quarter
ITEM 6 (b)
There were no reports filed under 8-K for this
quarter
SIGNATURES
ONEIDA LTD.
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE FOR THE
THREE MONTHS ENDED SIX MONTHS ENDED
(In thousands except per July 30, July 31, July 30, July 31,
share amounts) 1994 1993 1994 1993
--------- --------- --------- ---------
NET SALES.................... $115,561 $106,977 $226,583 $220,810
COST OF SALES................ 84,825 77,392 166,661 161,134
--------- --------- --------- ---------
GROSS MARGIN................. 30,736 29,585 59,922 59,676
OPERATING REVENUES........... 127 128 282 310
--------- --------- --------- ---------
30,863 29,713 60,204 59,986
OPERATING EXPENSES:
Selling and distribution... 17,956 17,570 35,648 34,463
General and administrative. 7,469 7,398 14,222 14,666
--------- --------- --------- ---------
Total.................... 25,425 24,968 49,870 49,129
--------- --------- --------- ---------
INCOME FROM OPERATIONS....... 5,438 4,745 10,334 10,857
OTHER EXPENSE................ 308 300 702 262
INTEREST EXPENSE............. 1,846 1,922 3,456 4,035
--------- --------- --------- ---------
INCOME BEFORE TAXES.......... 3,284 2,523 6,176 6,560
PROVISION FOR INCOME TAXES... 1,346 1,035 2,532 2,690
--------- --------- --------- ---------
NET INCOME................... $1,938 $1,488 $3,644 $3,870
========= ========= ========= =========
PER SHARE OF COMMON STOCK:
Net Income................. $0.18 $0.14 $0.34 $0.37
Cash Dividends Declared.... 0.12 0.12 0.24 0.24
SHARES USED IN PER SHARE DATA 10,740 10,306 10,678 10,275
<FN>
See notes consolidated financial statements.
ONEIDA LTD.
CONSOLIDATED BALANCE SHEET
JULY 30, 1994 AND JANUARY 29, 1994
(Thousands)
JULY 30, JAN 29,
ASSETS 1994 1994
--------- ---------
CURRENT ASSETS:
Cash........................................ $3,637 $3,227
Accounts receivable......................... 55,013 55,001
Less allowance for doubtful accounts
and promotional allowances................. (2,081) (2,066)
Other accounts and notes receivable......... 2,270 2,775
Inventories:
Finished goods............................. 101,947 97,469
Goods in process........................... 22,421 16,733
Raw materials and supplies................. 19,065 14,129
Other current assets........................ 10,625 9,478
--------- ---------
Total current assets..................... 212,897 196,746
--------- ---------
PROPERTY, PLANT AND EQUIPMENT-At cost:
Land........................................ 1,822 1,824
Buildings, machinery and equipment.......... 234,464 225,466
--------- ---------
Total.................................... 236,286 227,290
Less accumulated depreciation............... 123,623 116,496
--------- ---------
Property, plant & equipment-net.......... 112,663 110,794
--------- ---------
OTHER ASSETS:
Deferred income taxes....................... 6,268 6,254
Other....................................... 4,341 4,711
--------- ---------
TOTAL................................... $336,169 $318,505
<FN> ========= =========
See notes to consolidated financial statements
ONEIDA LTD.
CONSOLIDATED BALANCE SHEET
JULY 30, 1994 AND JANUARY 29, 1994
(Thousands)
JULY 30, JAN 29,
LIABILITIES AND STOCKHOLDERS' EQUITY 1994 1994
--------- ---------
CURRENT LIABILITIES:
Short-term debt............................. $28,832 $11,186
Banker's acceptances........................ 16,500 17,000
Accounts payable............................ 27,446 27,773
Accrued liabilities......................... 23,558 28,071
Current installments of long-term debt...... 922 899
--------- ---------
Total current liabilities................ 97,258 84,929
--------- ---------
LONG-TERM DEBT............................... 76,781 75,301
--------- ---------
OTHER LIABILITIES:
Accrued postretirement liability............ 62,084 60,806
Accrued pension liability................... 5,511 5,511
Other liabilities........................... 5,445 6,045
--------- ---------
Total.................................... 73,040 72,362
--------- ---------
STOCKHOLDERS' EQUITY:
6% cumulative preferred stock; $25 par
value; authorized 95,660 shares, issued
89,202 and 89,433 shares, respectively,
callable at $30 per share.................. 2,230 2,236
Common stock $1 par value; authorized
24,000,000 shares, issued 11,576,348
and 11,429,843 shares, respectively........ 11,576 11,430
Additional paid-in capital.................. 79,689 78,423
Retained earnings........................... 9,088 8,129
Equity adjustment from translation.......... (3,147) (2,461)
Less cost of common stock held in
treasury; 693,119 and 720,340 shares,
respectively............................... (8,761) (9,102)
Less unallocated ESOP shares of common
stock of 119,981 and 211,465,
respectively............................... (1,585) (2,742)
--------- ---------
Stockholders' Equity..................... 89,090 85,913
--------- ---------
TOTAL................................... $336,169 $318,505
========= =========
<FN>
See notes to consolidated financial statements.
ONEIDA LTD.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JULY 30, 1994 AND JULY 29, 1993
(In Thousands)
FOR THE
SIX MONTHS ENDED
JULY 30, JULY 31,
CASH FLOW FROM OPERATING ACTIVITIES: 1994 1993
--------- ---------
Net income ................................. $3,644 $3,870
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation.............................. 7,250 7,025
ESOP shares allocated to participants..... 1,376 1,376
Deferred taxes and other non-cash
charges and credits...................... 568 5
Decrease (increase) in operating assets:
Receivables.............................. 497 3,246
Inventories.............................. (15,423) (10,640)
Other current assets..................... (1,173) 698
Other assets.............................. 138 457
(Decrease) Increase in accounts payable... (335) 3,429
Decrease in accrued liabilities........... (4,609) (4,039)
--------- ---------
Net cash (used in) provided by operating
activities............................. (8,067) 5,427
--------- ---------
CASH FLOW FROM INVESTING ACTIVITIES:
Plant, property & equipment expenditures.... (9,811) (5,814)
Disposals of plant, property & equipment.... 478 625
Other, Net.................................. 313 (29)
--------- ---------
Net cash used in investing activities... (9,020) (5,218)
--------- ---------
CASH FLOW FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock..... 1,403 475
Issuance of restricted stock plan shares... 126 36
Net proceeds under short-term debt and
banker's acceptances...................... 17,146 2,965
Proceeds from issuance of long term debt... 2,000
Payment of long-term debt.................. (497) (507)
Dividends paid............................. (2,684) (2,628)
--------- ---------
Net cash provided by financing
activities.............................. 17,494 341
--------- ---------
EFFECTS OF EXCHANGE RATE CHANGES ON CASH..... 3 (34)
--------- ---------
NET INCREASE IN CASH......................... 410 516
CASH AT BEGINNING OF YEAR.................... 3,227 2,203
--------- ---------
CASH AT END OF PERIOD........................ $3,637 $2,719
========= =========
Supplemental Cash Flow Disclosures:
Interest paid ............................. $2,995 $4,626
Income taxes paid........................... 3,980 2,223
<FN>
See notes to consolidated financial statements.
</TABLE)
ONEIDA LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands)
1. The statements for the six months ended July 30, 1994 and July 31, 1993
are unaudited; in the opinion of the Company such unaudited statements
include all adjustments (which comprise only normal recurring accruals)
necessary for a fair presentation of the results for such periods. The
consolidated financial statements for the year ending January 28, 1995
are subject to adjustment at the end of the year when they will be
audited by independent auditors. The results of operations for the six
months ended July 30, 1994 are not necessarily indicative of the
results of operations to be expected for the year ending January 28,
1995. The consolidated financial statements and notes thereto should be
read in conjunction with the financial statements and notes for the
years ended in January 1994 and 1993 included in the Company's January
29, 1994 Annual Report to the Securities and Exchange Commission on
Form 10-K.
2. The provision for income taxes is based on pre-tax income for financial
statement purposes with an appropriate deferred tax provision to give
effect to changes in temporary differences between the financial
statements and tax basis of assets and liabilities. The temporary
differences arise principally from postretirement benefits,
depreciation, and other employee benefits.
3. Earnings per share are based on the weighted average number of shares
of common stock outstanding. The weighted average number of shares for
earnings per share includes the potentially dilutive effect of shares
issuable under the employee stock purchase, stock option and dividend
reinvestment plans. The shares owned by the Company's employee stock
ownership plan are treated as outstanding for purposes of the earnings
per share calculation only to the extent they have been allocated.
4. Included in the long-term debt caption on the balance sheet are various
senior notes. The note agreements relating thereto contain provisions
which restrict borrowings, certain business investments, acquisition of
the Company's stock and payment of cash dividends. At July 30, 1994 the
maximum amount available for payment of dividends was $4,138.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Quarter ended July 30, 1994 compared with
the quarter ended July 31, 1993
(In Thousands)
Operations
Consolidated net sales, for the quarter ended July 30, 1994 increased
$8,584, over the same quarter a year ago.
Net Sales 1994 1993 % Change
Tableware Division:
Consumer Products........ $ 47,907 $ 45,815 4.6%
Foodservice.............. 31,727 28,483 11.4% Total
Tableware........ 79,634 74,298 7.2%
Industrial Wire Division... 35,927 32,679 9.9%
Total.................. $115,561 $106,977 8.0%
The tableware division experienced a $5,336 increase in sales in the second
quarter of 1994 as compared to the same quarter in 1993. This increase is a
result of a $2,092 and $3,244 increase in consumer product and foodservice
sales, respectively. The industrial wire division's sales increased by
$3,248, primarily due to higher copper costs that are passed on to
customers.
Gross margin, as a percent of net sales, was equal to 26.6% for the second
quarter a decrease from 27.7% for the same quarter in 1993. Adjusted for
rising copper prices, comparable gross margins for the second quarter
remained approximately the same when compared to the same period last year.
Operating expenses 1994 1993 % Change
Tableware Division......... $22,305 $21,948 1.6%
Industrial Wire Division... 3,120 3,020 3.3%
Total.................. $25,425 $24,968 1.8%
Operating expenses as a percent of sales decreased to 22.0% from 23.3% for
the same quarter last year. Selling and distribution costs increased by
$386, while administrative costs increased by $71.
Interest expense, prior to capitalized interest, was $1,887 for the
quarter, a decrease from $2,014 for the same period a year ago. The
decrease is attributable to the lower average debt level in the second
quarter of 1994, offset by slightly higher interest rates, as compared to
the second quarter of 1993.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Six-month period ended July 30, 1994 compared with
the six-month period ended July 31, 1993
(In Thousands)
Operations
Consolidated net sales, for the six months ended July 30, 1994 increased
$5,773, over the same period a year ago.
Net Sales 1994 1993 % Change
Tableware Division:
Consumer Products........ $ 90,378 $ 92,616 (2.4%)
Foodservice.............. 63,543 59,439 6.9% Total
Tableware........ 153,921 152,055 1.2%
Industrial Wire Division... 72,662 68,755 5.7%
Total.................. $226,583 $220,810 2.6%
In the first six months of 1994 the tableware division's sales increased
$1,866 when compared to the first six months of 1993. This increase,
primarily in domestic sales, is comprised of a $4,104 increase in
foodservice sales offset by a $2,238 decrease in consumer product sales.
Consumer product sales were negatively impacted in the first quarter of
1994 by a three week nationwide trucking strike in April. The strike
resulted in a loss of shipments to many of the company's more profitable
customers. The industrial wire division's sales increased by $3,907 when
compared to the first six months of 1993. This division was not effected by
the above mentioned strike, as Camden Wire maintains it's own fleet of
trucks. The industrial wire division's increase in sales is the result of
changing product mixes.
As a percent of net sales, gross margin was equal to 26.4% for the six
months ended July 30, 1994, a slight decrease from 27.0% for the same
period last year. No single item is responsible for the change in the gross
profit percentage.
Operating expenses 1994 1993 % Change
Tableware Division......... $43,432 $43,070 .8%
Industrial Wire Division... 6,438 6,059 6.3%
Total.................. $49,870 $49,129 1.5%
Year to date operating expenses as a percent of sales dropped to 22.0% from
22.3% in 1993. Selling and distribution costs increased by $1,185 when
compared to the first six months of 1993. This increase was offset by a
$444 decrease in administrative costs.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Six-month period ended July 30, 1994 compared with
the six-month period ended July 31, 1993
(In Thousands)
For the six months ended July 30, 1994, interest expense (prior to
capitalized interest) decreased to $3,546 from $4,206 for the similar
period in 1993. The decrease is attributable to the lower average debt
level in the first six months of 1994 as compared to the same period in
1993.
Liquidity & Financial Resources
During the first half of this year, the company expended approximately
$9,800 in conjunction with its long-term capital expansion and
modernization program. The company expects to invest another $3,300 during
the remainder of the current fiscal year.
The total debt outstanding increased $18,650 or 17.9% since the beginning
of the year. This increase (primarily in short-term borrowings) is
necessary to finance seasonal working capital needs and the higher per
pound cost of copper inventories. As compared to July 1993 total debt
decreased by $370 or .3%.
Management believes that sufficient liquidity to support the company's
future funding requirements will be provided by cash from future operations
as well as the availability of bank lines of credit. At July 30, 1994, the
Company had unused credit lines equal to $57,500 and working capital of
$115,639.
ONEIDA LTD
SECURITIES AND EXCHANGE COMMISSION - FORM 10-Q
JULY 30, 1994
SIGNATURES
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.
ONEIDA LTD
(Registrant)
Date: September 12, 1994
____________________________
Edward W. Thoma
Senior Vice President Finance