U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-QSB
(Mark One)
X QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarterly Period Ended March 31, 1995.
OR
___ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACT
For the transition period from __________to __________.
Commission File No. 0-3366
BRYAN STEAM CORPORATION
(Exact name of small business issuer as specified in its charter)
NEW MEXICO 35-0202050
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
POST OFFICE BOX 27
PERU, IN 46970
(Address of principal executive offices, including zip code)
(317) 473-6651
(Issuer's telephone number, including area code)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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 _______
State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date.
COMMON STOCK 191,284
(Title of class) (Number of shares outstanding
March 31, 1995)
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
BRYAN STEAM CORPORATION
CONDENSED INCOME STATEMENT
Unaudited Unaudited Unaudited Unaudited
For the For the
Nine months Ended: Fiscal Quarter Ended
31-Mar-95 31-Mar-94 31-Mar-95 31-Mar-94
(Current (Preceding (Current (Preceding
Year) Year) Year) Year)
Gross sales less
discounts, returns
and allowances $13,386,105 $13,394,597 $ 3,878,302 $ 3,564,132
----------- ----------- ----------- -----------
Cost and expenses --
Cost of goods sold $ 8,949,487 $ 8,734,848 $ 2,673,000 $ 2,386,626
Selling, general and
administrative expenses 3,802,860 3,813,297 1,294,465 1,325,648
----------- ----------- ----------- -----------
Total cost and expenses $12,752,347 $12,548,145 $ 3,967,465 $ 3,712,274
----------- ----------- ----------- -----------
Income (or loss) before
taxes on income and
extraordinary items $ 633,758 $ 846,452 $ (89,163) $ (148,142)
Provisions for taxes
on income 247,382 287,794 (34,875) (50,369)
----------- ----------- ----------- -----------
Net income (or loss) $ 386,376 $ 558,658 $ (54,288) $ (97,773)
=========== =========== =========== ===========
Earnings per share* $ 2.02 $ 2.92 $ (0.28) $ (0.51)
=========== =========== =========== ===========
Dividends per share $ 1.30 $ 1.30 $ 1.30 $ 1.30
=========== =========== =========== ===========
<FN>
*Based on 191,284 shares of Common Stock issued
and outstanding throughout the period.
BRYAN STEAM CORPORATION
PERU, INDIANA
BALANCE SHEET
Unaudited Unaudited
March 31, June 30,
1995 1994
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 484,122 $ 360,213
Investment securities 3,077,359 2,633,111
Accounts receivable (net) 2,562,993 2,731,890
Prepaid expenses 207,806 151,814
Inventory 3,403,511 3,881,151
Prepaid federal income tax 71,229 -
Prepaid state income tax 1,348 170,014
----------- -----------
TOTAL CURRENT ASSETS $ 9,808,368 $ 9,928,193
----------- -----------
FIXED ASSETS
Land, buildings, equipment $ 5,907,598 $ 5,582,560
Less: Depreciation accumulated 2,577,081 2,289,117
----------- -----------
TOTAL FIXED ASSETS $ 3,330,517 $ 3,293,443
----------- -----------
OTHER ASSETS
Noncompete agreement - Hoppes
(Net of amortization) $ - $ 8,333
Goodwill - Hoppes 10,000 10,000
Deferred patent costs 7,002 7,407
----------- -----------
TOTAL OTHER ASSETS $ 17,002 $ 25,740
----------- -----------
TOTAL ASSETS $13,155,887 $13,247,376
=========== ===========
LIABILITIES AND NET WORTH
CURRENT LIABILITIES
Accounts payable - trade $ 104,636 $ 406,867
Accrued commissions 693,131 629,359
Accrued property taxes 273,255 218,117
Accrued taxes & other expenses 85,989 103,122
Accrued state income tax - 29,055
Deferred federal income tax 17,896 17,896
Deferred state income tax 4,105 4,105
----------- -----------
TOTAL CURRENT LIABILITIES $ 1,179,012 $ 1,408,521
----------- -----------
LONG-TERM LIABILITIES
Deferred federal income tax $ 241,101 $ 241,101
Deferred state income tax 55,311 55,311
Dividends payable 11,943 11,629
----------- -----------
TOTAL LONG-TERM LIABILITIES $ 308,355 $ 308,041
----------- -----------
TOTAL LIABILITIES $ 1,487,367 $ 1,716,562
----------- -----------
NET WORTH
Capital stock $ 810,272 $ 810,272
Treasury stock, at cost (28,727) (28,727)
Retained earnings 10,886,975 10,749,269
----------- -----------
TOTAL NET WORTH $11,668,520 $11,530,814
----------- -----------
TOTAL LIABILITIES AND NET WORTH $13,155,887 $13,247,376
=========== ===========
BRYAN STEAM CORPORATION
PERU, INDIANA
COMPARATIVE STATEMENT OF CASH FLOWS
Unaudited Unaudited
July 1, 1994 July 1, 1993
to to
Mar. 31, 1995 Mar. 31, 1994
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 386,376 $558,658
Non-cash items included in net income
Amortization 8,738 15,338
Depreciation 287,964 230,630
Changes in:
Inventory 477,640 423,164
Accounts receivable 168,897 353,880
Prepaid expenses (55,992) (46,507)
Prepaid federal income tax 98,785 (112,207)
Prepaid state income tax (1,348) -
Accounts payable (302,231) (206,436)
Commissions payable 63,772 (106,592)
Accrued county property tax 55,138 43,365
Accrued taxes & expenses (17,133) (14,071)
Federal income tax payable - (165,250)
State income tax payable (29,055) (61,967)
---------- --------
NET CASH PROVIDED BY OPERATING ACTIVITIES $1,141,551 $912,005
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of investment securities $ (444,248) $(429,825)
Purchases of plant and equipment (325,038) (453,289)
---------- ---------
NET CASH (USED) BY INVESTING ACTIVITIES $ (769,286) $(883,114)
---------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid $ (248,356) $(248,486)
---------- ---------
NET CASH (USED) BY FINANCING ACTIVITIES $ (248,356) $(248,486)
---------- ---------
NET INCREASE (DECREASE) IN CASH $ 123,909 $(219,595)
========== =========
CASH & CASH EQUIVALENTS
July 1 $ 360,213 $ 751,628
March 31 $ 484,122 $ 532,033
---------- ---------
NET INCREASE (DECREASE) IN CASH $ 123,909 $(219,595)
========== =========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest (Net of amount capitalized) $ 259 $ 56
Income taxes $ 179,036 $ 704,414
Item 1. FINANCIAL STATEMENTS (CONTINUED)
The unaudited interim financial statements to which this
management's discussion and analysis is attached reflect all
adjustments which are, in the opinion of management, necessary to
a fair statement of the results for the interim period presented.
All such adjustments are of a normal, recurring nature.
The Company intends to hold short-term investment securities
to maturity. The amount of unrealized gains and losses is not
material to the financial statements and therefore, has not been
disclosed for investment securities for the periods presented.
The Company's policy regarding its defined benefit pension
plans is to fund the minimum required by law and regulations.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The Company experienced a seasonal $54,288 loss for the
third quarter of fiscal 1995. This is down $43,485 (44.48%) from
the $97,773 net loss for the corresponding quarter last year.
Net income for the nine month period ending March 31, 1995
decreased $172,282 (30.84%) from the comparable period last year.
The decrease in net income is caused primarily by an increase in
cost of goods sold. Cost of goods sold increased $214,639
(2.46%) for the nine months ending March 31, 1995 from the
comparable period last year due to higher labor and material
costs. Cost of goods sold for the quarter increased $286,374
(12.00%) from the corresponding quarter last year, due primarily
to the increased sales in this quarter.
Sales for the quarter increased $314,170 (8.81%) from the
corresponding quarter last year due to a total of 378 boilers
being shipped this quarter compared to 350 units for the
corresponding quarter last year. A change in product mix from
larger sized boilers to medium sized boilers with a lower average
sales price caused sales to decrease $8,492 (.06%) for the nine
months ending March 31, 1995 from the comparable period last
year.
Selling, general, and administrative expense for the quarter
decreased $31,183 (2.35%) from the corresponding quarter last
year and remained steady for the nine-month period ended March
31, 1995, as compared to the same period last year. This
stability represents the efforts of the Company to lower group
insurance expense and legal expense to offset expected increases
in salaries and plant maintenance.
The Company's working capital ratio at March 31, 1995, of
8.32 to 1, is down from 9.66 to 1 a year ago, and up from 7.05 to
1 at fiscal year end. The change from a year ago is due
primarily to a $171,139 (4.79%) decrease in inventory. This
decrease in inventory is attributable to better management of raw
materials, which more than offset any increases in finished goods
and work in process. Cash and equivalents are up $123,909
(34.40%) from year end, and short-term investment securities
increased $444,248 (16.87%) from year end. Cash was made
available by better collection of accounts receivable which were
down $168,897 (6.18%) from year end, and by better controlling
inventory, which decreased $477,640 (12.31%) from year end.
Also, more cash was kept on hand to meet pending capital
expenditures, and until needed, part of this was used to reduce
trade accounts payable, which were down $302,231 (74.28%) from
year end.
Production continues at near capacity. The backlog of
orders at March 31, 1995, was $3,470,000, up $495,000 (16.64%)
from a year ago, and down 22.46% from year-end, reflecting the
customary seasonal downturn in demand. The plant is operating a
full first shift of 113 employees on a 40 hour work week, with no
workers on layoff.
Planned capital expenditures this year of up to $600,000 (of
which approximately $325,000 has been utilized), primarily for
manufacturing equipment, will continue to be funded internally.
The Company has secured a $1,000,000 revolving line of
credit and a $500,000 operating line of credit. Both credit
lines remain unused, and mature on July 2, 1995.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
(a) The following exhibit is filed as a part of this
report:
(27) Financial Data Schedule (nine months ended
March 31, 1995)
(b) No reports on Form 8-K were filed during the
quarter ended March 31, 1995.
SIGNATURES
Pursuant to the requirements of the Exchange Act, the
registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
BRYAN STEAM CORPORATION
By: /s/ Albert J. Bishop
Albert J. Bishop, President
Date: May 12, 1995
By: /s/ Kurt Krauskopf
Kurt Krauskopf, Secretary
Date: May 12, 1995