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, 1997
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 18, 1997, there were 9,362,863 shares of registrant's
common stock outstanding.
PART I - FINANCIAL INFORMATION
SHELBY WILLIAMS INDUSTRIES, INC.
Consolidated Statements of Income
Three Months Ended
March 31, 1997 and 1996
(Unaudited)
(Amounts in thousands, except per share data)
1997 1996
_________ ________
Net sales $41,819 $40,734
Cost of goods sold 32,350 31,643
______ ______
Gross profit 9,469 9,091
Selling, general and
administrative
expenses 6,077 6,252
______ ______
3,392 2,839
Other deductions
(income):
Interest expense 157 281
Interest and dividend
income (26) (2)
Miscellaneous expense
(income) 29 35
______ ______
160 314
______ ______
Income before income
taxes 3,232 2,525
______ ______
Income taxes:
Current 1,007 721
Deferred 59 59
______ ______
1,066 780
______ ______
Net income $ 2,166 $ 1,745
====== ======
Net income per share $ .25 $ .20
====== ======
Weighted average number
of common shares
outstanding 8,744 8,884
====== ======
<FN>
SHELBY WILLIAMS INDUSTRIES, INC.
Consolidated Balance Sheets
March 31, 1997 and December 31, 1996
(Unaudited)
(Amounts in thousands, except per share data)
March 31, 1997 December 31, 1996
_______________ _________________
ASSETS
Current assets:
Cash and cash equivalents $ 1,821 $ 1,039
Accounts receivable, less
allowance for doubtful
accounts of $425 at
March 31, 1997 and
$402 at December 31,
1996 23,671 25,224
Inventories:
Raw materials 11,914 11,615
Work in process 4,125 4,414
Finished goods 12,141 11,194
______ ______
28,180 27,223
Prepaid expense 3,419 3,691
______ ______
Total current assets 57,091 57,177
Excess of cost over net assets
of acquired company 167 169
Property, plant and equipment
at cost:
Land and land improvements 2,946 2,930
Buildings and leasehold
improvements 22,988 22,969
Machinery and equipment 24,565 24,207
______ ______
50,499 50,106
Less accumulated
depreciation and
amortization 24,771 24,145
______ ______
25,728 25,961
Other assets 1,421 1,371
______ ______
$84,407 $84,678
====== ======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 7,460 $ 9,002
Customer deposits on
orders in process 4,581 3,690
Accrued liabilities 3,515 4,172
Income taxes 1,631 1,707
Current portion of long-
term debt 2,000 1,000
______ ______
Total current liabilities 19,187 19,571
Long-term debt 6,000 7,000
Deferred income taxes 2,196 2,137
Stockholder's equity:
Common stock, $.05 par value;
authorized 30,000 shares;
issued 11,848 shares
(1996-11,814 shares) 592 591
Capital in excess of par value 8,438 8,143
Retained earnings 70,637 69,172
Pension liability adjustment (789) (789)
______ ______
78,878 77,117
Less common stock held in
treasury; 3,104 shares
at cost (1996-3,047) 21,854 21,147
______ ______
Total stockholders' equity 57,024 55,970
$84,407 $84,678
====== ======
<FN>
SHELBY WILLIAMS INDUSTRIES, INC.
Consolidated Statements of Cash Flows
Three Months Ended March 31, 1997 and 1996
(Unaudited)
(Amounts in thousands)
1997 1996
___________________________
Cash flows from operating activities:
Net income $2,166 $1,745
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amoritzation 650 697
Provision for losses on accounts
receivable 22 15
Change in assets and liabilities:
Accounts receivable 1,531 385
Inventories (957) (316)
Prepaid expenses 272 67
Accounts payable and accrued
liabilities (1,308) (179)
Income taxes payable (76) 79
Increase in deferred taxes 59 59
Other (50) (16)
_____ _____
Net cash provided by operating
activities 2,309 2,536
_____ _____
Cash flows from investing activities:
Proceeds from disposal of property,
plant and equipment 7 -
Capital expenditures (422) (303)
_____ _____
Net cash used by investing activities (415) (303)
_____ _____
Cash flows from financing activities:
Net repayment of short-term borrowings - (1,400)
Principal payments of long-term debt - (14)
Sale of common stock under stock
option plan 296 -
Purchase of common stock for the
treasury (707) (521)
Dividends declared and paid (701) (624)
_____ _____
Net cash used by financing activities (1,112) (2,559)
_____ _____
Net increase (decrease) in cash 782 (326)
Cash and cash equivalents at beginning
of period 1,039 2,376
_____ _____
Cash and cash equivalents at end of
period $1,821 $2,050
===== =====
Supplemental cash flow information:
Cash paid during the period for:
Interest $ 157 $ 280
Income taxes 1,083 642
_____ _____
$1,240 $ 922
===== =====
<FN>
SHELBY WILLIAMS INDUSTRIES, INC.
March 31, 1997
Item 1. Financial Statements
The attached unaudited statements include all adjustments which are, in
the opinion of management, necessary to a fair statement of the results for
the interim periods presented. All such adjustments are of a normal recur-
ring nature. The statements are as follows:
Consolidated Statements of Income for three months ended
March 31, 1997 and 1996.
Consolidated Balance Sheets at March 31, 1997 and December 31,
1996.
Consolidated Statements of Cash Flows for three months ended
March 31, 1997 and 1996.
Item 2. Managements' Discussion and Analysis of Financial Condition
and Results of Operations
Material Changes in Financial Condition
At March 31, 1997, the Company had long term debt of $6 million,
excluding $2.0 million current portion, and no short term debt, reflecting
a reduction of $5.4 million in outstanding indebtedness during the past
one-year period. Capital expenditures during the quarter ended March 31,
1997, amounted to $422,000, principally for automated machinery. In
January 1997, the Company purchased 57,000 shares of its common stock for
$708,000 at an average repurchase price of $12.42 per share. These
repurchses 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. Also, the Board of Directors in January, 1997,
authorized the repurchase of an additional 467,000 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, in the open market or privately negotiated transactions.
Book value per share at March 31, 1997 was $6.52 versus $5.91 a
year earlier. The current ratio at March 31, 1997 stood at 3.0-to-one,
up from 2.3-to-one at March 31, 1996.
On April 2, 1997, the Company sold 569,000 shares of its common
stock as part of a secondary offering. The underwriters of this public
offering purchased, from the Company, an additional 50,000 shares of the
previously granted over-allotment option, raising the total sold by the
Company, in April, 1997, to 619,000 shares for $8.0 million.
On April 10, 1997, the Company entered into contracts for the
installation of a state-of-art powder coating system in it's Morristown
facility at a cost of $2.0 million. The Company also plans to expend
approximately $3.0 million in this year for a new regional
manufacturing facility.
Material Changes in Results of Operation
For the quarter ended March 31, 1997, net sales increased
8.8 percent to $41.8 million compared to $38.4 million, excluding the
$2.3 million in sales of the divested Preview division, in the first
quarter of 1996. This increase was due almost entirely to volume
increases mainly attributable to continued strong hotel refurbishing
in addition to new hotel construction activity. Gross margin for the
quarter increased to 22.6 percent from 22.3 percent in the 1996 period,
reflecting stronger overhead utilization, internal efficiencies and a
favorable product mix. Selling, general and administrative expenses
fell to 14.5 percent of sales from 15.3 percent in the prior first
quarter. Approximately one-half of this improvement resulted from
divesting the Preview division with the remainder being primarily a
function of volume. Net interest expense was reduced approximately
$150,000 reflecting the reduction in outstanding indebtedness. As a
result of the foregoing, net income in the first quarter rose 24.1
percent to $2.2 million, or 25 cents per share, from $1.7 million, or
20 cents per share in the 1996 first quarter.
At March 31, 1997, the Company's backlog of unshipped orders
was an all-time record high $36.5 million, a 26 percent increase over
the prior year.
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits
10.1 Underwriting agreement dated March 26, 1997 filed as Exhibit
1 to Amendment No. 4 to Schedule 13D of Manfred Steinfeld
filed April 8, 1997 and hereby incorporated by reference.
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 18, 1997 S/Robert P. Coulter
________________________________
Robert P. Coulter
President and Director
(Principal Operating Officer)
April 18, 1997 S/Sam Ferrell
________________________________
Sam Ferrell
Vice President of Finance, Treasurer
and Assistant Secretary
(Principal Financial Officer)