UNITED STATES
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 March 31, 1996
Commission file Number 1-9457
SHELBY WILLIAMS INDUSTRIES, INC.
(Exact name of registrant as specified in its charter.)
Delaware 62-0974443
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
11-111 Merchandise Mart
Chicago, Illinois 60654
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(312) 527-3593
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 of 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 [ ]
At April 29, 1996, there were 8,847,200 shares of registrant's
common stock outstanding.
PART I - FINANCIAL INFORMATION
SHELBY WILLIAMS INDUSTRIES, INC.
Consolidated Statements of Income
Three Months Ended
March 31, 1996 and 1995
(Unaudited)
(Amounts in thousands, except per share data)
1996 1995
_________ ________
Net sales $40,734 $39,301
Cost of goods sold 31,643 30,901
______ ______
Gross profit 9,091 8,400
Selling, general and
administrative
expenses 6,252 6,340
______ ______
2,839 2,060
Other deductions
(income):
Interest expense 281 337
Interest and dividend
income (2) (2)
Miscellaneous expense
(income) 35 (40)
______ ______
314 295
______ ______
Income before income
taxes 2,525 1,765
______ ______
Income taxes:
Current 721 381
Deferred 59 59
______ ______
780 440
______ ______
Net income $ 1,745 $ 1,325
====== ======
Net income per share $ .20 $ .15
====== ======
Weighted average number
of common shares
outstanding 8,884 8,979
====== ======
<FN>
SHELBY WILLIAMS INDUSTRIES, INC.
Consolidated Balance Sheets
March 31, 1996 and December 31, 1995
(Unaudited)
(Amounts in thousands, except per share data)
March 31, 1996 December 31, 1995
_______________ _________________
ASSETS
Current assets:
Cash and cash equivalents $ 2,050 $ 2,376
Accounts receivable, less
allowance for doubtful
accounts of $410 at
March 31, 1996 and
$423 at December 31,
1995 24,798 25,198
Inventories:
Raw materials 13,097 12,349
Work in process 4,184 4,598
Finished goods 11,470 11,488
______ ______
28,751 28,435
Prepaid expense 3,180 3,247
______ ______
Total current assets 58,779 59,256
Excess of cost over net assets
of acquired company 176 178
Property, plant and equipment
at cost:
Land and land improvements 2,876 2,876
Buildings and leasehold
improvements 25,425 25,408
Machinery and equipment 25,121 25,029
Construction in progress 151 -
______ ______
53,573 53,313
Less accumulated
depreciation and
amortization 24,734 24,082
______ ______
28,839 29,231
Other assets 1,258 1,242
______ ______
$89,052 $89,907
====== ======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term borrowings $ 4,500 $ 5,900
Accounts payable 11,624 10,425
Customer deposits on
orders in process 4,192 3,245
Accrued liabilities 4,462 6,787
Income taxes 907 828
Current portion of long-
term debt 55 55
______ ______
Total current liabilities 25,740 27,240
Long-term debt 8,826 8,840
Deferred income taxes 2,162 2,103
Stockholder's equity:
Common stock, $.05 par value;
authorized 30,000 shares;
issued 11,779 shares
(1995-11,779 shares) 589 589
Capital in excess of par value 7,855 7,855
Retained earnings 64,519 63,398
Pension liability adjustment (908) (908)
______ ______
72,055 70,934
Less common stock held in
treasury; 2,926 shares
at cost (1995-2,879) 19,731 19,210
______ ______
Total stockholders' equity 52,324 51,724
$89,052 $89,907
====== ======
<FN>
SHELBY WILLIAMS INDUSTRIES, INC.
Consolidated Statements of Cash Flows
Three Months Ended March 31, 1996 and 1995
(Unaudited)
(Amounts in thousands)
1996 1995
___________________________
Cash flows from operating activities:
Net income $1,745 $1,325
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amoritzation 697 715
Provision for losses on accounts
receivable 15 75
Change in assets and liabilities:
Accounts receivable 385 1,927
Inventories (316) 284
Prepaid expenses 67 (190)
Accounts payable and accrued
liabilities (179) (62)
Income taxes payable 79 381
Increase in deferred taxes 59 59
Other (16) (79)
_____ _____
Net cash provided by operating
activities 2,536 4,435
_____ _____
Cash flows from investing activities:
Proceeds from disposal of property,
plant and equipment - 13
Capital expenditures (303) (325)
_____ _____
Net cash used by investing activities (303) (312)
_____ _____
Cash flows from financing activities:
Net repayment of short-term borrowings (1,400) (2,350)
Principal payments of long-term debt (14) (12)
Sale of common stock under stock
option plan - 23
Purchase of common stock for the
treasury (521) (181)
Dividends declared and paid (624) (630)
_____ _____
Net cash used by financing activities (2,559) (3,150)
_____ _____
Net increase (decrease) in cash (326) 973
Cash and cash equivalents at beginning
of period 2,376 1,633
_____ _____
Cash and cash equivalents at end of
period $2,050 $2,606
===== =====
Supplemental cash flow information:
Cash paid during the period for:
Interest $ 280 $ 340
Income taxes 642 -
_____ _____
$ 922 $ 340
===== =====
<FN>
SHELBY WILLIAMS INDUSTRIES, INC.
March 31, 1996
Item 1. Financial Statements
See attached unaudited statements as follows:
Consolidated Statements of Income for three months ended
March 31, 1996 and 1995.
Consoldiated Balance Sheets at March 31, 1996 and December 31,
1995.
Consolidated Statements of Cash Flows for three months ended
March 31, 1996 and 1995.
Item 2. Managements' Discussion and Analysis of Financial Condition
and Results of Operations
Material Changes in Financial Condition
During the first quarter of 1996, interest bearing debt was reduced
by $1.4 million. During the same period, the Company purchased 47,000
shares of its common stock for $522,000 at an average repurchase price of
$11.16 per share. These repurchases were made to use in connection with
exercise of options granted and to be granted under the Company's stock
option plans and for other proper corporate purposes. The Board of Directors
has authorized the repurchase of an additional 106,000 shares. The Company
may purchase these shares from time to time in the future, with purchase
decisions to be dependent on market conditions and other factors.
At quarter's end, shareholders' equity was $52,324,000, or $5.91 per
share, and working capital totaled $33 million, reflecting a 2.3-to-1 current
ratio. There were no major capital expenditures in the first quarter and
none are planned for 1996.
Material Changes in Results of Operation
Volume from strength in all of the Company's key markets resulted
in a 4 percent sales increase for the quarter ended March 31, 1996 to
$40.7 million from $39.3 million in 1995. Net income totaled $1.7 million,
a 32% increase over $1.3 million in the first quarter of 1995. Earnings
per share of $.20 for the first quarter increased 33% from $.15 in the
same period in 1995. Increased efficiencies contributed to gross margin
improvement to 22.3 percent from 21.4 percent.
Quarterly results improved in spite of three lost production days due
to winter storms. The Company's Hotel and Food Service Division, recorded its
best month ever in terms of new orders in March. The Company's backlog of
unshipped orders was approximately $31 million at both March 31, 1996 and
1995.
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits
27 Financial Data Schedule (EDGAR only).
B. Reports on Form 8-K
No reports have been filed on Form 8-K during this
quarter.
SHELBY WILLIAMS INDUSTRIES, INC.
SIGNATURES
Pursuant to the requirement 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.
SHELBY WILLIAMS INDUSTRIES, INC.
(Registrant)
April 29, 1996 S/Robert P. Coulter
________________________________
Robert P. Coulter
President and Director
(Principal Operating Officer)
April 29, 1996 S/Sam Ferrell
________________________________
Sam Ferrell
Vice President of Finance, Treasurer
and Assistant Secretary
(Principal Financial Officer)