17
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended August 4, 2001
Commission File Number 1-5911
SPARTECH CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 43-0761773
(State or other jurisdiction of (I.R.S Employer
incorporation or organization) Identification No.)
120 South Central Avenue, Suite 1700, Clayton, Missouri 63105
(Address of principal executive offices)
(314) 721-4242
(Registrant's telephone number, including area code)
Indicate by checkmark 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, and (2) has been subject to such filing
requirements for the past 90 days.
Yes x No
Number of common shares outstanding as of August 4, 2001:
Common Stock, $.75 par value per share 26,768,952
SPARTECH CORPORATION AND SUBSIDIARIES
INDEX
August 4, 2001
PART I. FINANCIAL INFORMATION PAGE
CONSOLIDATED CONDENSED BALANCE SHEET -
as of August 4, 2001 and October 28, 2000 3
CONSOLIDATED CONDENSED STATEMENT OF
OPERATIONS - for the quarter and nine months
ended August 4, 2001 and July 29, 2000 4
CONSOLIDATED CONDENSED STATEMENT OF
CASH FLOWS - for nine months ended
August 4, 2001 and July 29, 2000 5
NOTES TO CONSOLIDATED CONDENSED FINANCIAL
STATEMENTS 6
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS 11
PART II. OTHER INFORMATION 16
SIGNATURES 17
PART I - FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
SPARTECH CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEET
(Dollars in thousands)
ASSETS
Aug. 4, 2001
(unaudited) Oct. 28, 2000
Current Assets
Cash and equivalents $ 9,191 $ 10,495
Receivables, net 130,403 143,733
Inventories 97,457 95,130
Prepayments and other 8,481 8,443
Total Current Assets 245,532 257,801
Property, Plant and Equipment 390,286 412,373
Less accumulated depreciation 113,490 100,752
Net Property, Plant and Equipment 276,796 311,621
Goodwill 294,590 305,153
Other Assets 16,129 14,394
$833,047 $888,969
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Current maturities of long-term debt $ 18,208 $ 18,667
Accounts payable 82,075 90,077
Accrued liabilities 25,578 38,016
Total Current Liabilities 125,861 146,760
Long-Term Debt, Less Current Maturities 289,954 334,178
Other Liabilities 50,493 47,009
Total Long-Term Liabilities 340,447 381,187
Company-obligated manditorily redeemable
convertible preferred securities of
Spartech Capital Trust holding solely
convertible subordinated debentures 150,000 150,000
Shareholders' Equity
Common stock, 28,067,023
shares issued in 2001 and 2000 21,039 21,039
Contributed capital 95,490 95,241
Retained earnings 141,883 126,149
Treasury stock, at cost, 1,298,071 shares
in 2001 and 1,203,456 shares in 2000 (28,713) (25,306)
Accumulated Other Comprehensive Income (12,960) (6,101)
Total Shareholders' Equity 216,739 211,022
$833,047 $888,969
See accompanying notes to consolidated condensed financial statements.
SPARTECH CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(Unaudited and dollars in thousands, except per share data)
QUARTER ENDED NINE MONTHS ENDED
Aug. 4, July 29, Aug. 4, July
29,
2001 2000 2001 2000
Net Sales $222,820 $255,935 $703,303 $711,050
Costs and Expenses
Cost of sales 186,296 208,250 584,419 581,309
Selling and administrative 13,865 14,764 43,042 41,250
Write-down of
long-lived assets 5,550 - 5,550 -
Amortization of intangibles 2,040 1,874 6,130 4,591
207,751 224,888 639,141 627,150
Operating Earnings 15,069 31,047 64,162 83,900
Interest 5,477 6,099 19,320 14,871
Distributions on
preferred securities of
Spartech capital trusts 2,563 2,563 7,688 5,573
Earnings Before Income Taxes 7,029 22,385 37,154 63,456
Income Taxes 2,370 8,781 13,817 24,904
Net Earnings $ 4,659 $ 13,604 $ 23,337 $ 38,552
Net Earnings Per Common Share:
Basic $ .17 $ .50 $ .87 $ 1.41
Diluted $ .17 $ .46 $ .87 $ 1.32
Dividends Per Common Share $ .095 $ .085 $ .285 $ .255
See accompanying notes to consolidated condensed financial statements.
SPARTECH CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
(Unaudited and dollars in thousands)
NINE MONTHS ENDED
Aug. 4, 2001July 29, 2000
Cash Flows From Operating Activities
Net earnings $ 23,337 $ 38,552
Adjustments to reconcile net earnings
to net cash provided by operating
activities:
Depreciation and amortization 27,089 23,827
Write-down of long-lived assets 5,550 -
Change in current assets and
liabilities, net of effects of
acquisitions (12,049) (27,304)
Other, net 528 1,815
Net cash provided by operating
activities 44,455 36,890
Cash Flows From Investing Activities
Capital expenditures (11,830) (20,561)
Retirement of assets 1,175 86
Business (Acquisitions)/Dispositions 20,721 (216,765)
Net cash used for investing activities 10,066 (237,240)
Cash Flows From Financing Activities
Bank borrowings (payments) for business
Acquisitions / Dispositions (20,721) 216,765
Net borrowings (payments) on revolving
credit facilities (22,640) 8,146
Payments on bonds and leases (762) (1,565)
Debt issuance costs - (2,915)
Cash dividends on common stock (7,604) (7,074)
Stock options exercised 1,189 1,887
Treasury stock acquired (5,287) (11,631)
Net cash (used for) provided by
financing activities (55,825) 203,613
Effect of exchange rate changes on cash
and equivalents - (17)
(Decrease) Increase In Cash and Equivalents (1,304) 3,246
Cash and Equivalents At Beginning Of Period 10,495 8,890
Cash and Equivalents At End Of Period $ 9,191 $ 12,136
See accompanying notes to consolidated condensed financial statements.
SPARTECH CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited and dollars in thousands, except per share amounts)
Note A - Basis of Presentation
Our consolidated financial statements include the accounts of Spartech
Corporation and its wholly owned subsidiaries. These financial statements have
been prepared on a condensed basis and, accordingly, certain information and
note disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been condensed or
omitted pursuant to the rules and regulations of the Securities and Exchange
Commission. In the opinion of management, the financial statements contain all
adjustments (consisting of normal recurring adjustments and non-recurring
expenses discussed in Note G) and disclosures necessary to make the information
presented therein not misleading. These financial statements should be read in
conjunction with the consolidated financial statements and accompanying
footnotes thereto included in our October 28, 2000 Annual Report on Form 10-K.
Our fiscal year ends on the Saturday closest to October 31. Fiscal year
2001 will include 53 weeks compared to 52 weeks in 2000. As a result, the nine
months ended August 4, 2001 consists of 40 weeks, compared to the 39 weeks in
the nine months ended July 29, 2000. Operating results for any quarter are
traditionally seasonal in nature and are not necessarily indicative of the
results expected for the full year.
Note B - Inventories
Inventories are valued at the lower of cost (first-in, first-out) or
market. Inventories at August 4, 2001 and October 28, 2000 are comprised of the
following components:
2001 2000
Raw materials $ 60,110 $ 55,253
Finished goods 37,347 39,877
$ 97,457 $ 95,130
SPARTECH CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited and dollars in thousands, except per share amounts)
Note C - Cash Flow Information
Supplemental information on cash flows and noncash transactions for the
nine months ended August 4, 2001 and July 29, 2000 is as follows:
2001 2000
Cash paid for:
Interest $ 23,868 $ 17,417
Income taxes $ 9,254 $ 18,288
Note D - Comprehensive Income
Comprehensive Income is an entity's change in equity during the period from
transactions, events and circumstances from non-owner sources. A summary of our
components of Total Comprehensive Income follows:
QUARTER ENDED NINE MONTHS ENDED
Aug. 4, July 29, Aug. 4, July 29
2001 2000 2001 2000
Net Earnings $ 4,659 $ 13,604 $ 23,337 $ 38,552
Foreign currency
translation adjustments (1,758) (219) (2,216) (737)
Cash flow hedge adjustments (612) - (4,642) -
Total Comprehensive Income $ 2,289 $ 13,385 $ 16,479 $ 37,815
SPARTECH CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited and dollars in thousands, except per share amounts)
Note E - Segment Information
Spartech's forty-five facilities are organized into three reportable segments
based on the nature of the products manufactured.
QUARTER NINE MONTHS
ENDED
N 2001 2000 2001 2000
e
t
S
a
l
e
s
*
Custom Sheet & Rollstock $148,525 $168,935 $464,065 $ 458,816
Color & Specialty Compounds 53,143 60,923 166,459 178,952
Molded & Profile Products 21,152 26,077 72,779 73,282
Total Net Sales $222,820 $255,935 $703,303 $ 711,050
O
p
e
r
a
t
i
n
g
E
a
r
n
i
n
g
s
Custom Sheet & Rollstock $ 17,457 $ 21,200 $ 52,708 $ 56,247
Color & Specialty Compounds 6,077 8,333 18,893 23,323
Molded & Profile Products 2,276 3,677 7,594 9,756
Corporate/Other (10,741) (2,163) (15,033) (5,426)
Total Operating Earnings $ 15,069 $ 31,047 $ 64,162 $ 83,900
* Excludes intersegment sales of $6,631 and $6,075 for the three months
ended August 4, 2001 and July 29, 2000, respectively, and $21,966 and
$18,829 for the nine months ended August 4, 2001 and July 29, 2000,
respectively.
Note F - Recently Adopted Accounting Standards
SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities,
as amended by SFAS No. 137, Accounting for Derivative Instruments and Hedging
Activities - Deferral of the Effective Date of FASB Statement No. 133, and SFAS
No. 138, Accounting for Certain Derivative Instruments and Certain Hedging
Activities, was effective for the Company as of October 29, 2000. SFAS No. 133
establishes accounting and reporting standards requiring that every derivative
instrument (including certain derivative instruments embedded in other
contracts) be recorded in the balance sheet as either an asset or liability
measured at fair value and that the changes in the derivative's fair value be
recognized currently in earnings unless specific hedge accounting criteria are
met. Special accounting for qualifying hedges allows a derivative's gains and
losses to offset related results on the hedged item in the income statement, and
requires that a company must formally document, designate and assess the
effectiveness of transactions that receive hedge accounting. On November 8,
2000, the Company entered into an interest rate swap as a hedge of $125,000 of
variable rate credit facilities. On June 25, 2001, the Company extended the
existing interest rate swap by 2 years to November 2004 and decreased the swap's
interest rate by .425%. As of August 4, 2001, the Company has recorded
approximately $4.6 million as a liability and a reduction of comprehensive
income reflecting the reduction in value related to the decline in interest
rates since the interest rate swap's inception.
Note G - Non-Recurring Expenses
The Company implemented a series of cost reduction actions to further
streamline its core operations, increase production efficiencies, and strengthen
the Company's position for future growth. These streamlining efforts included
the closing of three additional plant facilities (Charleston, South Carolina;
Greensboro, Georgia; and Oxnard, California). The majority of the actions, which
have already been initiated, will be completed within the next 90 days, and in
no event will the closing of the facilities or transfer of business to other
Spartech facilities, take more than 9-12 months to be fully affected.
In connection with these efforts, the Company recorded $9.1 million in non-
recurring pre-tax expenses for costs incurred on the operations slated for
closedown, including the writedowns for the impairment of long-lived assets.
The non-recurring expenses consisted of $5.6 million related to the impairment
of long-lived assets and $3.5 million related to severance, phase out, and other
exit costs recorded in cost of sales. The assets impaired are made up of
various production machinery & support equipment, and real estate holdings of
the effected facilities. The impairment charges adjusted the carrying values of
these assets to fair value less the cost to sell. The fair value was determined
by using current selling prices for similar assets. All the asset impairment
charges and the majority of the non-recurring expenses were reflected as a
Corporate/Other operating expense.
Note H - Disposition
On August 9, 2001, Spartech announced that it completed the sale of its
custom molded product businesses based in Canada for $25 million to a group of
former managers. These two businesses, Spartech Industries--Thin-Wall Containers
and Spartech Industries--Custom Molded Products, consist of three production
facilities (two in Ontario and one in Quebec) and represented approximately $35
million of Spartech's fiscal 2000 sales. The proceeds, which consist of
approximately $23 million in cash and a $2 million interest-bearing note,
contributed cash of $20.7 million in the quarter. The remaining $2.5 million of
cash will be received upon final accounting for the transaction, while the note
matures in five years.
Note I - Recently Issued Accounting Standard
In July 2001, The Financial Accounting Standards Board issued Statement No.
141 "Business Combinations," and Statement No. 142, "Goodwill and Other
Intangible Assets." Statement 141 requires that the purchase method of
accounting be used for all business combinations initiated after June 30, 2001.
Statement 142 will require that goodwill and intangible assets with indefinite
useful lives no longer be amortized against earnings, but instead be tested for
impairment at least annually. The Company is required to adopt the provisions
of Statement 141 immediately. Statement 142 could be effective for the
Company's fiscal year 2002, if early adoption is elected; otherwise it will b
effective for fiscal 2003.
The Company currently has unamortized goodwill of approximately $294.6
million, which will be subject to the transition provisions of Statements 141
and 142. Under the new rules, the Company would eliminate the amortization
expense related to goodwill (which totaled $6.6 million and $6.1 million for the
year ended October 28, 2000 and the nine months ended August 4, 2001,
respectively) and record impairment losses, if any, subject to periodic tests
for impairment. The Company is currently evaluating the full impact of adopting
Statement 142.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Results of Operations
The Company's fiscal year ends on the Saturday closest to October 31.
Fiscal year 2001 will include 53 weeks compared to 52 weeks in 2000. As a
result, the nine months ended August 4, 2001 consists of 40 weeks, compared to
the 39 weeks in the first nine months ended July 29, 2000. The operating
results presented below include discussions on a percentage of sales basis for
more meaningful comparisons.
Net sales were $222.8 million and $703.3 million for the quarter and nine
months ended August 4, 2001, representing a 13% and 1% decrease from the similar
periods in 2000. The primary reason for the decrease during the quarter and
nine months was the reduction in resin pricing impacting the sales price and
decreases for the slow down in the volume sold to the automotive and
manufactured housing markets, partially offset with changes in product mix to
higher value products. The Company's fiscal 2001 third quarter operating
earnings were 15.1 million or 6.8% of sales after non-recurring expenses ($24.2
million before $9.1 million of non-recurring expenses or 10.8% of sales)
compared to the $31.0 million or 12.1% of sales reported for the third quarter
last year. The nine months 2001 operating earnings were $64.2 million or 9.1% of
sales after non-recurring expenses ($73.3 million before $9.1 million of non-
recurring expenses or 10.4% of sales) compared to the $83.9 million or 11.8% of
sales reported for the similar period last year. Third quarter and nine month
2001 net earnings, after non-recurring expenses, were $4.7 million and $23.3
million, or $0.17 and $0.87 per diluted share, compared to the $13.6 million and
$38.6 million, or $0.46 and $1.32 per diluted share, reported in 2000. Before
the impact of the $9.1 million or $.22 per share of after tax non-recurring
expenses, third quarter 2001 net earnings per diluted share was $.39 compared
with the $.46 in the prior year quarter.
Our Custom Sheet & Rollstock segment generated sales of $464.1 million
during the first nine months of 2001 up 1% compared to the $458.8 million in the
first nine months of 2000 due to the fiscal 2000 acquisition of Uniroyal's HPP
Group offset by "resin price reduction pass throughs" and a decrease in
incremental margin business. Sales decreased 7% for the Color & Specialty
Compounds group to $166.5 million in the first nine months of 2001. This
decrease was caused by lower average selling prices related to resin price
reductions and transportation-related customers continuing their inventory
reduction programs, lowering overall volume shipped. Our Molded & Profile
Products group generated $72.8 million in sales for the first nine months of
2001 a 1% decrease due to lower than projected demand at our profile units,
along with the sale of three Canadian molded products operations, offset by a
strong performance at the custom engineered wheels business.
Cost of sales increased to $584.4 million for the nine months ended August
4, 2001, compared with $581.3 million for the same period in 2000, and increased
to 83.1% of net sales for 2001 from 81.8% for 2000. Our less favorable cost of
sales percentage in 2001 represents the impact on productivity of lower demand
in the transportation and manufactured housing markets and the impact of $3.5
million of non-recurring expenses primarily related to severance, phase out, and
other exit costs incurred upon closing three facilities.
Selling and administrative expenses were $43.0 million for the nine months
ended August 4, 2001 compared to $41.3 million for the similar periods in 2000.
On a percentage of net sales basis, selling and administrative costs for the
nine months increased to 6.1% from 5.8% in 2000. Increased bad debt expense and
the fiscal 2000 acquisitions were the primary reasons for the increase.
Operating earnings for the nine months ended August 4, 2001 were $64.2
million or 9.1% of net sales ($73.3 million or 10.4% of net sales before non-
recurring expenses), compared to $83.9 million or 11.8% of net sales for the
nine months in 2000. The decrease in operating earnings was primarily due to
sluggish demand in the transportation and building & construction markets.
The Company implemented a series of cost reduction actions to further
streamline its core operations, increase production efficiencies, and strengthen
the Company's position for future growth. These streamlining efforts included
the closing of three additional plant facilities (Charleston, South Carolina;
Greensboro, Georgia; and Oxnard, California). The majority of the actions, which
have already been initiated, will be completed within the next 90 days, and in
no event will the closing of the facility or transfer of business to other
Spartech facilities, take more than 9-12 months to be fully affected.
In connection with these efforts, the Company recorded $9.1 million in non-
recurring pre-tax expenses for costs incurred on the operations slated for
closedown, including the writedowns for the impairment of long-lived assets.
The non-recurring expenses consisted of $5.6 million related to the impairment
of long-lived assets and $3.5 million related to severance, phase out, and other
exit costs recorded in cost of sales. The impairment charges adjusted the
carrying values of these assets to fair value less the cost to sell. The fair
value was determined by using current selling prices for similar assets. All
the asset impairment charges and the majority of the non-recurring expenses were
reflected as a Corporate/Other operating expense
Interest expense and Distributions on Preferred Securities Distributions
for the nine months ended August 4, 2001 of $27.0 million increased from $20.4
million for the same period in 2000 as a result of borrowings related to the
acquisitions completed in 2000, offset by $44.1 repayment of debt, lower
interest rates on floating-rate debt, and more favorable vendor discount terms.
The effective tax rate for the third quarter of 2001 was 33.7% compared to
the third quarter of 2000 of 39.2%. The third quarter 2001 rate reflects the
benefit received from tax credits on amended prior year returns. Our effective
tax rate was approximately 37.2% and 39.1% for the nine months ending August 4,
2001 and July 29, 2000 reflecting an improvement in our combined state tax rate
and ongoing benefits from R&D tax credits. The expected effective tax rate for
the year should continue to be approximately 37%.
Environmental
We operate under various laws and regulations governing employee safety,
the quantities of specified substances that may be emitted into the air,
discharged into waterways, and otherwise disposed of on and off our properties.
We do not anticipate that future expenditures for compliance with these laws and
regulations will have a material effect on its capital expenditures, earnings,
or competitive position.
The plastic resins we use in our production process are crude oil or
natural gas derivatives which are available from a number of domestic and
foreign suppliers. Accordingly, our raw materials are only somewhat affected by
supply, demand, and price trends of the petroleum industry. The pricing of
resins tends to be independent of crude oil or natural gas except in periods of
anticipated or actual shortages. We are not aware of any trends in the
petroleum industry which will significantly affect its sources of raw materials
in 2001.
Liquidity and Capital Resources
Cash Flow
Our primary sources of liquidity have been cash flows from operating
activities and borrowings from third parties. Our principal uses of cash have
been to support our operating activities, invest in capital improvements, and
finance strategic acquisitions. Our cash flows for the periods indicated are
summarized as follows:
Nine Months
2001 2000
(Dollars in millions)
Net cash provided by
operating activities $ 44.5 $ 36.9
Net cash provided by (used for)
investing activities $ 10.1 $(237.2)
Net cash (used for) provided by
financing activities $ (55.8) $ 203.6
(Decrease) Increase in cash
and equivalents $ (1.3) $ 3.2
Operating cash flow provided by net earnings decreased 39.5% to $23.3 in
the first nine months of 2001 compared to the corresponding period of the prior
year. Operating cash flows used for changes in working capital totaled $12.0
million for the nine months ended August 4, 2001 as compared to $27.3 million in
2000. The larger fiscal 2000 working capital increase was the result of several
inventory pre-buys, increasing resin prices and higher sales volume during that
period.
Our primary investing activities are capital expenditures and acquisitions
of businesses in the plastics industry. Capital expenditures are primarily
incurred to maintain and improve productivity, as well as to modernize and
expand facilities. Capital expenditures for the nine months ended August 4,
2001 and July 29, 2000 were $11.8 million and $20.6 million, respectively. We
anticipate total fiscal 2001 capital expenditures of less than $20 million.
While this amount is well under our $29.2 million incurred in fiscal 2000, it is
sufficient for all expected maintenance and operating enhancements desired in
2001. The sale of three non-core Canadian custom molding operations generated
$20.7 million in cash in the third quarter
The cash flows used for financing activities were $55.8 million for the
first nine months of 2001. The primary activity was the paydown of bank
borrowings of $44.1 million, cash dividend payments of $7.6 million, and
purchases of treasury stock, net of options exercised, of $4.1 million.
Impact of Recently Issued Accounting Standards
In July 2001, The Financial Accounting Standards Board issued Statement No.
141 "Business Combinations," and Statement No. 142, "Goodwill and Other
Intangible Assets." Statement 141 requires that the purchase method of
accounting be used for all business combinations initiated after June 30, 2001.
Statement 142 will require that goodwill and intangible assets with indefinite
useful lives no longer be amortized against earnings, but instead be tested for
impairment at least annually. The Company is required to adopt the provisions
of Statement 141 immediately, but Statement 142 will not be effective until its
fiscal year 2003, unless early adoption is elected for fiscal 2002.
The Company currently has unamortized goodwill of approximately $294.6
million, which will be subject to the transition provisions of Statements 141
and 142. Under the new rules, the Company would eliminate the amortization
expense related to goodwill (which totaled $6.6 million and $6.1 million for the
year ended October 28, 2000 and the nine months ended August 4, 2001,
respectively) and record impairment losses, if any, subject to periodic tests
for impairment. The Company is currently evaluating the full impact of adopting
Statement 142.
Forward Looking Statements
The information presented herein contains certain forward-looking
statements, defined in Section 21E of the Securities Exchange Act of 1934.
Forward-looking statements represent our judgement relating to, among other
things, future results of operations, growth plans, sales, capital requirements
and general industry and business conditions applicable to us. They are based
largely on our current expectations. Our actual results could differ materially
from the information contained in the forward-looking statements due to a number
of factors, including changes in the availability and cost of raw materials,
changes in the economy or the plastics industry in general, other unanticipated
events that may prevent us from competing successfully in existing or new
markets, and our ability to manage our growth effectively. Investors are also
directed to the discussion of risks and uncertainties associated with forward-
looking statements contained in our Annual Report on Form 10-K filed with the
Securities and Exchange Commission.
PART II - OTHER INFORMATION
Item 6 (a). Exhibits
10 Employment Agreement between George A. Abd and Spartech
Corporation dated March 1, 2001.
11 Statement re Computation of Per Share Earnings
Item 6 (b). Reports on Form 8-K
None
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.
SPARTECH CORPORATION
(Registrant)
Date: September 17, 2001 /S/ Bradley B. Buechler
Bradley B. Buechler
Chairman, President and
Chief Executive Officer
(Principal Executive Officer)
Date: September 17, 2001 /S/ Randy C. Martin
Randy C. Martin
Executive Vice President and
Chief Financial Officer
(Principal Financial and
Accounting Officer)