BANDAG, INCORPORATED AND SUBSIDIARIES
(In thousands except per share data)
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Three Months Ended Six Months Ended
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Unaudited Condensed Consolidated Statements of Earnings 6/30/1999 6/30/1998 6/30/1999 6/30/1998
Net sales $ 252,120 $ 266,127 $ 476,258 $ 502,058
Interest income 1,745 2,471 3,269 4,913
Other income 988 1,483 2,161 2,882
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254,853 270,081 481,688 509,853
Cost of products sold 153,328 163,556 288,526 308,740
Engineering, selling, administrative and other expenses 70,994 77,204 143,055 153,797
Interest expense 2,435 3,295 4,999 5,676
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226,757 244,055 436,580 468,213
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Earnings before income taxes 28,096 26,026 45,108 41,640
Income taxes 11,970 11,858 18,945 18,322
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Net earnings $ 16,126 $ 14,168 $ 26,163 $ 23,318
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Net earnings per share - Basic $ 0.74 $ 0.62 $ 1.20 $ 1.02
Net earnings per share - Diluted $ 0.73 $ 0.62 $ 1.19 $ 1.02
Cash dividends per share $ 0.285 $ 0.275 $ 0.570 $ 0.550
Depreciation included in expense $ 10,498 $ 8,470 $ 20,146 $ 19,370
Amortization included in expense $ 2,483 $ 2,200 $ 4,905 $ 4,440
Average shares outstanding - Basic 21,873 22,784 21,890 22,784
Average shares outstanding - Diluted 21,941 22,907 21,964 22,903
BANDAG, INCORPORATED AND SUBSIDIARIES
(In thousands)
Six Months Ended
Unaudited Condensed Consolidated Statements of Cash Flows 6/30/1999 6/30/1998
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Operating Activities
Net earnings $ 26,163 $ 23,318
Provision for depreciation and amortization 25,051 23,810
Increase in operating assets and liabilities - net 13,992 (2,743)
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Net cash provided by operating activities 65,206 44,385
Investing Activities
Additions to property, plant and equipment (18,153) (29,643)
Purchases of investments (6,459) (19,206)
Maturities of investments 7,238 3,513
Payments for acquisitions of businesses (1,698) -
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Net cash used in investing activities (19,072) (45,336)
Financing Activities
Proceeds from short-term notes payable - 2,576
Proceeds from issuance of long-term debt
Proceeds from long-term notes payable 59 -
Principal payments on short-term notes payable and other long-term liabilities (6,225) (98,335)
Cash dividends (12,475) (12,548)
Purchases of Common Stock and Class A Common Stock (1,196) (405)
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Net cash used in financing activities (19,837) (108,712)
Effect of exchange rate changes on cash and cash equivalents (2,854) (835)
Increase (decrease) in cash and cash equivalents 23,443 (110,498)
Cash and cash equivalents at beginning of year 37,912 196,400
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Cash and cash equivalents at end of period $ 61,355 $ 85,902
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BANDAG, INCORPORATED AND SUBSIDIARIES
(In thousands)
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June 30, Dec. 31,
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Unaudited Condensed Consolidated Balance Sheets 1999 1998
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ASSETS:
Cash and cash equivalents $ 61,355 $ 37,912
Investments 8,942 9,721
Accounts receivable - net 193,582 217,299
Inventories
Finished products 102,923 96,889
Materials & work-in-process 17,729 14,845
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120,652 111,734
Other current assets 61,851 62,458
Total current assets 446,382 439,124
Property, plant, and equipment 491,522 503,745
Less accumulated depreciation (289,506) (290,699)
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202,016 213,046
Other assets, net 96,619 103,559
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Total assets $745,017 $755,729
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LIABILITIES & STOCKHOLDERS' EQUITY:
Accounts payable $ 29,485 $ 38,286
Income taxes payable 20,640 13,704
Accrued employee compensation and benefits 25,098 27,498
Accrued marketing expenses 30,921 37,044
Other accrued expenses 48,727 46,880
Short-term notes payable and current portion of other obligations 5,261 11,497
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Total current liabilities 160,132 174,909
Long-term debt and other obligations 109,675 109,757
Deferred income tax liabilities 9,157 3,766
Stockholders' equity:
Common stock; $1 par value; authorized - 21,500,000 shares;
Issued and outstanding - 9,085,232 shares in 1999; 9,083,797 in 1998 9,085 9,084
Class A Common stock; $1 par value; authorized - 50,000,000 shares;
Issued and outstanding - 10,781,844 shares in 1999; 10,824,974 in 1998 10,782 10,825
Class B Common stock; $1 par value; authorized - 8,500,000 shares;
Issued and outstanding - 2,046,012 shares in 1999; 2,046,577 in 1998 2,046 2,047
Additional paid-in capital 7,336 7,287
Retained earnings 464,822 452,274
Equity adjustment from foreign currency translation (28,018) (14,220)
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Total equity 466,053 467,297
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Total liabilities & stockholders' equity $745,017 $755,729
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