UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 27, 1996
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)
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 May 25, 1996.
10,984,233
ONEIDA LTD
FOR THE THREE MONTHS ENDED APRIL 27, 1996
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
THREE MONTHS ENDED
(Thousands except per APRIL 27, APRIL 29,
share amounts) 1996 1995
--------- ---------
NET SALES.............................. $119,315 $121,807
COST OF SALES.......................... 88,223 87,843
--------- ---------
GROSS MARGIN........................... 31,092 33,964
OPERATING REVENUES..................... 163 176
--------- ---------
31,255 34,140
--------- ---------
OPERATING EXPENSES:
Selling and distribution............. 17,954 18,373
General and administrative........... 7,005 7,559
--------- ---------
Total.............................. 24,959 25,932
--------- ---------
INCOME FROM OPERATIONS................. 6,296 8,208
OTHER EXPENSE.......................... 68 474
INTEREST EXPENSE....................... 1,837 2,157
--------- ---------
INCOME BEFORE TAXES.................... 4,391 5,577
PROVISION FOR INCOME TAXES............. 1,722 2,192
--------- ---------
NET INCOME............................. $2,669 $3,385
========= =========
PER SHARE OF COMMON STOCK:
Net Income........................... $0.24 $0.30
Cash Dividends Declared.............. 0.13 0.12
SHARES USED IN PER SHARE DATA.......... 11,157 11,007
<FN>
See notes to consolidated financial statements.
ONEIDA LTD.
CONSOLIDATED BALANCE SHEET
APRIL 27, 1996 AND JANUARY 27, 1996
(Thousands)
APRIL 27, JAN 27,
ASSETS 1996 1996
--------- ---------
CURRENT ASSETS:
Cash........................................ $2,905 $2,847
Accounts receivable......................... 59,752 56,649
Less allowance for doubtful accounts....... (1,821) (1,697)
Other accounts and notes receivable......... 2,134 2,200
Inventories:
Finished goods............................. 108,712 101,864
Goods in process........................... 22,672 22,796
Raw materials and supplies................. 23,351 21,103
Other current assets........................ 13,443 9,471
--------- ---------
Total current assets..................... 231,148 215,233
--------- ---------
PROPERTY, PLANT AND EQUIPMENT-At cost:
Land and buildings.......... ......... ...... 61,121 58,338
Machinery and equipment..................... 197,205 193,420
--------- ---------
Total.................................... 258,326 251,758
Less accumulated depreciation............... 140,723 136,559
--------- ---------
Property, plant & equipment-net.......... 117,603 115,199
--------- ---------
OTHER ASSETS:
Deferred income taxes....................... 9,728 9,728
Other....................................... 5,256 4,203
--------- ---------
TOTAL................................... $363,735 $344,363
========= =========
<FN>
See notes to consolidated financial statements.
ONEIDA LTD.
CONSOLIDATED BALANCE SHEET
APRIL 27, 1996 AND JANUARY 27, 1996
(Thousands)
APRIL 27, JAN 27,
LIABILITIES AND STOCKHOLDERS' EQUITY 1996 1996
--------- ---------
CURRENT LIABILITIES:
Short-term debt............................. $35,075 $24,067
Accounts payable............................ 32,376 26,621
Accrued liabilities......................... 34,323 38,314
Current installments of long-term debt...... 4,673 4,749
--------- ---------
Total current liabilities................ 106,447 93,751
--------- ---------
LONG-TERM DEBT............................... 78,169 72,129
--------- ---------
OTHER LIABILITIES:
Accrued postretirement liability............ 62,344 61,800
Accrued pension liability................... 5,209 5,209
Other liabilities........................... 4,800 5,174
--------- ---------
Total.................................... 72,353 72,183
--------- ---------
STOCKHOLDERS' EQUITY:
6% cumulative preferred stock; $25 par
value; authorized 95,660 shares, issued
88,694 and 88,989 shares, respectively,
callable at $30 per share.................. 2,217 2,225
Common stock $1 par value; authorized
24,000,000 shares, issued 11,729,803
and 11,706,224 shares, respectively........ 11,730 11,706
Additional paid-in capital.................. 81,471 81,150
Retained earnings........................... 30,029 28,936
Equity adjustment from translation.......... (8,587) (8,614)
Less cost of common stock held in
treasury; 714,889 and 672,617 shares,
respectively............................... (9,239) (8,563)
Less unallocated ESOP shares of common
stock of 53,206 and 34,347, respectively... (855) (540)
--------- ---------
Stockholders' Equity..................... 106,766 106,300
--------- ---------
TOTAL................................... $363,735 $344,363
========= =========
<FN>
See notes to consolidated financial statements.
ONEIDA LTD.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED APRIL 27, 1996 AND APRIL 29, 1995
(In Thousands)
FOR THE
THREE MONTHS ENDED
APR 27, APR 29,
CASH FLOW FROM OPERATING ACTIVITIES: 1996 1995
--------- ---------
Net income ................................. $2,669 $3,385
Adjustments to reconcile net income to net
cash used in operating activities:
Depreciation.............................. 4,176 4,033
Deferred taxes and other non-cash
charges and credits...................... 150 1,382
Decrease (increase) in operating assets:
Receivables.............................. (2,913) 4,890
Inventories.............................. (8,972) (17,674)
Other current assets..................... (3,972) (1,870)
Other assets.............................. (903) (387)
Increase in accounts payable.............. 5,755 9,248
Decrease in accrued liabilities........... (3,991) (5,218)
--------- ---------
Net cash used in operating activities..... (8,001) (2,211)
--------- ---------
CASH FLOW FROM INVESTING ACTIVITIES:
Property, plant and equipment expenditures.. (6,913) (4,870)
Retirement of property, plant and equipment. 330 637
Other, net.................................. (138) (19)
--------- ---------
Net cash used in investing activities..... (6,721) (4,252)
--------- ---------
CASH FLOW FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock..... 357 168
Net issuance (cancellation) of restricted
stock plan shares......................... (16) 72
Purchase of treasury stock................. (676)
Purchase of preferred stock................ (4)
Purchase of ESOP shares.................... (315) (1,480)
Net proceeds under short-term debt......... 11,008 4,586
Proceeds from issuance of long-term debt... 6,500 5,000
Payment of long-term debt.................. (536) (372)
Dividends paid............................. (1,578) (1,344)
--------- ---------
Net cash provided by financing activities. 14,740 6,630
--------- ---------
EFFECTS OF EXCHANGE RATE CHANGES ON CASH..... 40 (90)
--------- ---------
NET INCREASE IN CASH......................... 58 77
CASH AT BEGINNING OF YEAR.................... 2,847 2,207
--------- ---------
CASH AT END OF PERIOD........................ $2,905 $2,284
========= =========
Supplemental Cash Flow Disclosures:
Interest paid .............................. $1,093 $1,542
Income taxes paid........................... 718 1,990
<FN>
See notes to consolidated financial statements.
ONEIDA LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Thousands)
1. The statements for the three months ended April 27, 1996
and April 29, 1995 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 25, 1997 are subject to adjustment at the end of
the year when they will be audited by independent
auditors. The results of operations for the three months
ended April 27, 1996 are not necessarily indicative of
the results of operations to be expected for the year
ending January 25, 1997. The consolidated financial
statements and notes thereto should be read in
conjunction with the financial statements and notes for
the years ended in January 1996 and 1995 included in the
Company's January 27, 1996 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 and stock
option 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, business investments, acquisition of the
Company's stock and payment of cash dividends. At April
27, 1996 the maximum amount available for payment of
dividends was $7,758.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Quarter ended April 27, 1996 compared with
the quarter ended April 29, 1995
(Thousands)
Operations
Consolidated net sales, for the quarter ended April 27, 1996
decreased $2,492, over the same quarter a year ago.
Net Sales 1996 1995 % Change
Tableware Division:
Consumer Products........ $ 48,608 $ 47,451 2.4%
Foodservice.............. 34,282 32,815 4.5%
Total Tableware........ 82,890 80,266 3.3%
Industrial Wire Division... 36,425 41,541 (12.3%)
Total.................. $119,315 $121,807 ( 2.0%)
Sales in both the Consumer and Foodservice business segments
outpaced prior year levels. Shipments of industrial wire
products were lower due to decreases in demand from
automotive and electronics customers.
Gross margin, as a percentage of net sales, was equal to
26.1% for the first quarter of 1996, compared to 27.7% for
the same quarter in 1995. Tableware gross profits declined
2% from the same period last year due principally to changes
in product mix. At Camden Wire gross margin was lower due to
volume decreases.
Operating Expenses 1996 1995 % Change
Tableware Division......... $22,296 $22,787 ( 2.2%)
Industrial Wire Division... 2,663 3,145 (15.3%)
Total.................. $24,959 $25,932 ( 3.8%)
Operating expenses decreased by $973 from the same quarter
last year. Selling and distribution costs decreased by $419
while administrative costs decreased by $554. The decrease
in selling costs is related to the reduced sales level at
Camden Wire as well as cost containments in the tableware
facilities. The decrease in administrative costs is the
result of lower profit sharing due to lower operating income.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Quarter ended April 27, 1996 compared with
the quarter ended April 29, 1995
(Thousands)
Interest expense, prior to capitalized interest, was $1,957
for the quarter, a decrease of $255 from the first quarter of
1995. This decrease is primarily the result of lower average
borrowing rates.
The total debt outstanding decreased $1,154 to $117,917 from
the same period last year. Accordingly, the debt to total
capital ratio has decreased from 56% to 52%.
Liquidity & Financial Resources
During the first quarter of this year, the company expended
approximately $6,900 in conjunction with its long-term
capital expansion and modernization program. The company
expects to invest another $15,000 during the remainder of the
current fiscal year. Approximately $3,300 was spent on the
Camden Wire modernization program. The new wire plant
constructed in El Paso, Texas is now operational. The
Company plans to spend another $3,700 this year as it
completes this plant and adds new equipment to the existing
wire mills.
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 April 27, 1996, the Company had
unused short-term credit lines equal to $51,500 and working
capital of $124,701.
ONEIDA LTD
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
FORM 10-Q
APRIL 27, 1996
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: June 7, 1996
____________________________
Edward W. Thoma
Senior Vice President Finance