THE PURPOSE OF THIS AMENDED FILING IS TO PROPERLY ATTACH THE FINANCIAL DATA
SCHEDULE TAG AS EXHIBIT 27.
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-Q Amendment Number 1
(Mark one)
( X ) Quarterly Report Under Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarter ended April 2, 1995
Or
( ) Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period from _______________ to _______________
Plasti-Line, Inc.
(Exact name of registrant as specified in its charter)
Tennessee
(State or other jurisdiction of incorporation or organization)
62-1218546
(I.R.S. Employer Identification Number)
0-15214
(Commission File Number)
623 E. Emory Road, P.O. Box 59043, Knoxville, Tennessee 37950-9043
(Address of principal executive offices)
(615) 938-1511
(Registrant's phone number including area code)
Not applicable
(Former name, former address and former fiscal year, 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, and (2) has been subject to such
filing requirements for the past 90 days.
Yes X
No
As of May 4, 1995 there were 3,684,708 shares of common stock outstanding.
PART I
ITEM 1
FINANCIAL INFORMATION
PLASTI-LINE, INC.
Consolidated Condensed Balance Sheets
April 2, 1995 (1995) and January 1, 1995 (1994)
(Amounts in thousands)
Assets 1995 1994
(Unaudited) (Audited)
Current assets:
Cash and cash equivalents $ 10 $ 10
Marketable securities - 599
Receivables, net 13,670 16,010
Inventories 20,716 19,213
Prepaid expenses 1,609 1,679
Deferred income taxes 1,869 1,869
Total current assets 37,874 39,380
Net property and equipment 12,155 11,947
Other assets 118 123
Total Assets $ 50,147 $ 51,450
See accompanying notes to consolidated condensed financial statements.
Liabilities and Stockholders' Equity 1995 1994
(Unaudited) (Audited)
Current liabilities:
Current installments of long-term debt $ 745 $ 745
Accounts payable 6,617 6,750
Accrued liabilities 4,935 4,078
Income taxes payable 30 (46)
Customer deposits and deferred revenue 4,760 4,504
Total current liabilities 17,087 16,031
Long-term debt, excluding
current installments 9,586 12,004
Deferred income taxes 987 987
Deferred liabilities 75 75
Stockholders' equity:
Preferred stock, $.001 par value.
Authorized 5,000,000 shares;
issued none - -
Common stock, $.001 par value. Authorized
20,000,000 shares, issued
3,684,786 shares 4 4
Additional paid-in-capital 2,588 2,571
Notes receivable, common stock (139) (152)
Retained earnings 19,959 19,930
Total Stockholders' Equity 22,412 22,353
Total Liabilities and
Stockholders' Equity $ 50,147 $ 51,450
See accompanying notes to consolidated condensed financial statements.
PLASTI-LINE, INC.
Consolidated Condensed Statements of Operations
For the three months ended April 2,1995 (1995) and April 3, 1994 (1994)
(Amounts in thousands, except per share data)
1995 1994
Net sales $ 20,056 $ 15,971
Cost of sales 16,686 13,191
Gross profit 3,370 2,780
Selling, general, and
administrative expenses 3,094 2,621
Operating income 276 159
Interest income - 2
Interest expense 214 121
Income before income taxes 62 40
Income taxes 34 16
Net income $ 28 $ 24
Net income per share $ 0.01 $ 0.01
See accompanying notes to consolidated condensed financial statements.
PLASTI-LINE, INC.
Consolidated Condensed Statements of Cash Flows
Three months ended April 2, 1995 (1995) and April 3, 1994 (1994)
(Unaudited)
(in thousands)
1995 1994
Cash flows from operating activities:
Net income $ 28 $ 24
Adjustments to reconcile net income
to net cash provided
by operating activities:
Depreciation and amortization 402 450
Loss on sale of investments in
marketable securities 6 -
Provision for losses on
accounts receivable 27
Decrease in net receivables 2,340 2,037
Increase in inventories (1,503) (1,311)
(Increase) Decrease in prepaid expenses 70 (630)
Decrease in accounts payable (133) (337)
Increase in accrued liabilities 857 54
(Decrease) Increase in income
taxes payable 76 (302)
(Decrease) Increase in
customer deposits and deferred revenue 256 (611)
Net cash provided (used)
by operating activities 2,399 (599)
Cash flows from investing activities:
Purchases of property and equipment (605) (368)
Investment in marketable securities - (198)
Proceeds from the sale and maturity
of investments 593 -
Net cash used by investing activities (12) (566)
Cash flows from financing activities:
Net borrowings under line of credit (2,401) 1,150
Principal payments on long-term debt (17) (16)
Proceeds from sales of common stock 18 31
Payments of notes receivable -
common stock 13 -
Net cash provided (used)
by financing activities (2,387) 1,165
Net increase in cash and cash equivalents - -
Cash and cash equivalents at
beginning of year 10 10
Cash and cash equivalents at
end of period $ 10 $ 10
Supplemental disclosures of
cash flow information:
Cash paid during the period for:
Interest 203 128
Income taxes 13 317
Noncash transactions:
Amortization of compensation
from restricted stock $ 18 $ 17
See accompanying notes to consolidated condensed financial statements.
PLASTI-LINE, INC.
Notes to Consolidated Condensed Financial Statements
1. Condensed Consolidated Financial Statements
The Consolidated condensed balance sheet as of April 2, 1995, and the
consolidated condensed statements of operations and cash flows for the three
months ended April 2, 1995 and April 3, 1994, have been prepared by the
Company, without audit. In the opinion of management, all adjustments
(which include only normal recurring adjustments) necessary to present fairly
the financial position, results of operations and changes in cash flows at
April 2, 1995 and for all periods presented have been made.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. It is suggested that these
consolidated financial statements be read in conjunction with the financial
statements and notes thereto included in the Company's 1994 Annual Report to
Stockholders. The results of operations for the period ended April 2, 1995
are not necessarily indicative of the operating results for the full year.
2. Principles of Consolidation
The financial statements include the accounts of the Company and its wholly
owned subsidiary, American Sign & Marketing Services, Inc. All significant
intercompany accounts and transactions have been eliminated.
3. Inventories
Inventories consist of the following:
April 2, 1995 April 3, 1994
Finished goods $ 14,559 $ 14,945
Work-in-process 2,159 1,734
Raw materials 6,999 4,863
Less: LIFO inventory reserve (3,001) (2,975)
Total net inventory $ 20,716 $ 18,567
Inventories are stated at the lower-of-cost or market. Cost is determined by
the last-in, first-out method (LIFO).
4. Earnings Per Share
Net income per common share is based on the weighted average number of common
and common equivalent shares outstanding in each period. For purposes of
computing common equivalent shares outstanding, shares relating to options
have been calculated using the treasury stock method for the portion of each
period for which the options were outstanding and using the fair value of the
Company's stock for each of the respective periods.
The weighted average number of common and common stock equivalent shares
outstanding at April 2, 1995 were 3,687,000.
ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Consolidated results of operations for the three months ended April 2, 1995
(1995 Quarter) compared to the consolidated results of operations for the
three months ended April 3, 1994 (1994 Quarter):
The Company's sales in the first quarter of 1995 increased 25.6% to
$20,056,000 from $15,971,000 for the same period last year. First quarter
1995 sales were higher due to increased volume related to new customer
programs, including the General Motors Chevrolet Facility Reimage and
McDonald's new drive through menuboard system, and from increased sales
volume at the Company's west coast operation, Plasti-Line West.
The Company's gross profit margin during the 1995 Quarter (16.8%) was
relatively flat as compared to the margin during the 1994 Quarter (17.4%).
Selling, general, and administrative expenses were $3,094,000 for the 1995
Quarter versus $2,621,000 for the 1994 Quarter, an 18.0% increase. The
increase is primarily the result of the costs of a Company-wide business
process reengineering project.
Operating income was $276,000 and $159,000 for the 1995 and 1994 Quarters,
respectively. The 73.6% increase is largely due to the increase in sales
volume.
Net interest expense increased to $214,000 for the 1995 Quarter compared
to $119,000 in the 1994 Quarter. This was primarily the result of higher
average debt balances combined with higher variable interest rates in the
1995 Quarter.
Liquidity and Capital Resources
The Company's cash, cash equivalents, and marketable securities decreased
$599,000 from the January 1, 1995 balance to $10,000 at April 2, 1995. The
decrease is due to the sale of investments in U.S. Government and U.S.
Government Agency obligations.
The Company has working capital of $20,787,000, a decrease of $2,562,000
from the amount of working capital at January 1, 1995 primarily due to the
sale of marketable securities and a decrease in net receivables. Funds of
$2,399,000 were provided by operating activities. Decreases in receivables
were the primary source of funds.
Investing activities used $12,000 as a result of property and equipment
purchases offset by the sale of marketable securities. Financing activities
used $2,387,000 primarily as a result of decreased net borrowings under the
Company's line of credit during the 1995 Quarter.
The Company's future capital expenditures will relate principally to the
acquisition of new machinery and equipment and furniture and fixtures
designed to increase productivity and factory efficiency. The Company
believes its cash generated from operations and funds available under the
existing line of credit are sufficient for all planned operating and capital
requirements.
Seasonality
The Company's sales exhibit limited seasonality, with sales in the first
quarter generally being the lowest and fourth quarter sales the highest.
First quarter sales tend to be relatively lower because of weather
constraints which slow down customer's construction schedules and their
pattern of sign purchases. Sales have normally accelerated in the second,
third, and fourth quarters corresponding with accelerated construction
schedules.
PART II
OTHER INFORMATION
Item 1. Legal Proceedings
Not applicable.
Item 2. Changes in Securities
Not applicable.
Item 3. Default Upon Senior Securities
Not applicable.
Item 4. Submission of Matters to a Vote of Security Holders
Not applicable.
Item 5. Other Information:
During the quarter, Richard A. Banfield announced his resignation
as President, Chief Operating Officer, and Director of the Company.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits - Exhibit 27
(b) No reports on Form 8-K were filed during the quarter ended
April 2, 1995.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PLASTI-LINE, INC.
Registrant
/s/ Mark J.Desuchle
Mark J. Deuschle
Vice-President of Finance
(Authorized Officer and Principal Financial Officer)
June 30, 1995