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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 SEPTEMBER 30, 1996
Commission File Number 0-2762
MAXCO, INC.
(Exact Name of Registrant as Specified in its Charter)
Michigan 38-1792842
-------- ----------
(State or other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification Number)
1118 Centennial Way
Lansing, Michigan 48917
(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number, including area code: (517) 321-3130
--------------
Indicate by check mark whether the registrant (1) has filed all annual,
quarterly and other reports required to be filed by Section 12 or 15 (d) of the
Securities Exchange Act of 1934 during the preceding twelve months and (2) has
been subject to the filing requirements for at least the past 90 days.
Yes X No
----- -----
Indicate the number of shares outstanding for each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding at September 30, 1996
----- ---------------------------------
Common Stock 3,706,880 shares
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PART I
FINANCIAL INFORMATION
CONSOLIDATED BALANCE SHEETS
MAXCO, INC. AND SUBSIDIARIES
September 30, March 31,
1996 1996
(Restated-
Note 2)
-------------------------
(in thousands)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 1,588 $ 768
Marketable securities--Note 4 17,891
Accounts and notes receivable, less allowance of
$392,000 in 1996 ($351,000 at March 31, 1996) 14,115 7,420
Inventories--Note 3 5,409 4,529
Prepaid expenses and other 160 363
Net current assets of discontinued businesses--Note 2 1,332 26,286
------- ---------
TOTAL CURRENT ASSETS 40,495 39,366
MARKETABLE SECURITIES - LONG TERM--Note 4 20,648 15,419
PROPERTY AND EQUIPMENT
Land 470 470
Buildings 6,646 6,447
Machinery, equipment, and fixtures 8,973 7,893
------- ---------
16,089 14,810
Allowances for depreciation (6,195) (4,992)
------- ---------
9,894 9,818
OTHER ASSETS
Investments 3,085 3,056
Notes and contracts receivable and other 3,707 1,072
Intangibles 1,005 1,044
Net non-current assets of discontinued businesses--Note 2 3,277 9,843
------- ---------
11,074 15,015
------- ---------
$82,111 $79,618
======= =========
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September 30, March 31,
1996 1996
(Restated-
Note 2)
-------------------------
(in thousands)
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable $ 226 $ 236
Accounts payable 8,583 5,281
Employee compensation 1,399 868
Taxes, interest, and other liabilities 17,020 278
Current maturities of long-term obligations 1,332 1,150
--------- ----------
TOTAL CURRENT LIABILITIES 28,560 7,813
LONG-TERM OBLIGATIONS, less current maturities--Note 5 7,536 26,903
DEFERRED INCOME TAXES 5,143 8,476
INTERESTS OF MINORITY HOLDERS IN
DISCONTINUED BUSINESS 10,304
STOCKHOLDERS' EQUITY
Preferred stock:
Series Two: 12% cumulative redeemable, convertible,
$50 par value; 18,000 shares issued 900 900
Series Three: 10% cumulative redeemable, $60 face
value; 15,986 shares issued and outstanding
(16,050 at March 31, 1996) 750 754
Common stock, $1 par value; 10,000,000 shares
authorized, 3,706,880 issued shares (4,227,442 at
March 31, 1996) 3,707 4,227
Additional paid-in capital 686
Net unrealized gain on marketable securities 3,006 5,294
Retained earnings 32,509 14,261
--------- ----------
40,872 26,122
--------- ----------
$ 82,111 $ 79,618
========= ==========
See notes to consolidated financial statements
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CONSOLIDATED STATEMENTS OF OPERATIONS
MAXCO, INC. AND SUBSIDIARIES
Three Months Ended September 30,
1996 1995
(Unaudited) (Unaudited)
(Restated-
Note 2)
-------------- --------------
(in thousands,
except per share data)
Net sales $20,793 $17,727
Costs and expenses:
Cost of sales and operating expenses 17,297 14,559
Selling, general and administrative 2,685 2,672
Depreciation and amortization 345 270
---------- ----------
20,327 17,501
---------- ----------
OPERATING EARNINGS 466 226
Other income (expense)
Gain on sale of subsidiary 35,242
Investment income 402 5
Interest expense (194) (468)
---------- ----------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE FEDERAL INCOME TAXES 35,916 (237)
Federal income tax expense (benefit) 13,485 (92)
---------- ----------
INCOME (LOSS) FROM CONTINUING OPERATIONS 22,431 (145)
Income (loss) from discontinued businesses--Note 2 (66) 251
---------- ----------
NET INCOME 22,365 106
Less preferred stock dividend and other (51) (51)
---------- ----------
NET INCOME APPLICABLE
TO COMMON STOCK $22,314 $ 55
========== ==========
NET INCOME (LOSS) PER COMMON SHARE--Primary
Continuing operations $ 5.59 $ (.05)
Discontinued businesses (.02) .06
---------- ----------
$ 5.57 $ .01
========== ==========
NET INCOME (LOSS) PER COMMON SHARE--Fully Diluted
Continuing operations $ 5.29
Discontinued businesses (.02)
----------
$ 5.27
==========
Weighted average number of shares of common stock and
common stock equivalents outstanding 4,004 4,384
========== ==========
See notes to consolidated financial statements
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CONSOLIDATED STATEMENTS OF OPERATIONS
MAXCO, INC. AND SUBSIDIARIES
Six Months Ended September 30,
1996 1995
(Unaudited) (Unaudited)
(Restated-
Note 2)
-----------------------------
(in thousands,
except per share data)
Net sales $39,990 $36,765
Costs and expenses:
Cost of sales and operating expenses 33,367 30,212
Selling, general and administrative 5,265 5,329
Depreciation and amortization 671 521
---------- ----------
39,303 36,062
---------- ----------
OPERATING EARNINGS 687 703
Other income (expense)
Gain on sale of subsidiary 35,242
Investment income 406 9
Interest expense (714) (905)
---------- ----------
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE FEDERAL INCOME TAXES 35,621 (193)
Federal income tax expense (benefit) 13,388 (86)
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INCOME (LOSS) FROM CONTINUING OPERATIONS 22,233 (107)
Income from discontinued businesses--Note 2 464 569
---------- ----------
NET INCOME 22,697 462
Less preferred stock dividend and other (102) (102)
---------- ----------
NET INCOME APPLICABLE
TO COMMON STOCK $22,595 $ 360
========== ==========
NET INCOME (LOSS) PER COMMON SHARE--Primary
Continuing operations $ 5.32 $ (.05)
Discontinued businesses .11 .13
---------- ----------
$ 5.43 $ .08
========== ==========
NET INCOME (LOSS) PER COMMON SHARE--Fully Diluted
Continuing operations $ 5.05
Discontinued businesses .11
----------
$ 5.16
==========
Weighted average number of shares of common stock and
common stock equivalents outstanding 4,160 4,392
========== ==========
See notes to consolidated financial statements
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CONSOLIDATED STATEMENTS OF CASH FLOWS (CONDENSED)
MAXCO, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
MAXCO, INC. AND SUBSIDIARIES
Six Months Ended September 30,
1996 1995
(Unaudited) (Unaudited)
(Restated-
Note 2)
-------------------------------------
(in thousands)
OPERATING ACTIVITIES
Net Income $ 22,697 $ 462
Income from Discontinued Businesses (464) (569)
------------ ----------------
Income (Loss) from Continuing Operations 22,233 (107)
Adjustments to reconcile net income to net cash provided
by (used in) operating activities:
Advance to discontinued business (152) (1,491)
Gain of sale of subsidiary (35,242)
Deferred taxes (2,152)
Depreciation 630 478
Amortization 41 43
Changes in operating assets and liabilities:
Accounts receivable (6,143) (4,164)
Inventories (880) (969)
Prepaid expenses and other 202 (148)
Accounts payable and other current liabilities 15,864 2,398
------------ ----------------
NET CASH USED IN OPERATING ACTIVITIES (5,599) (3,960)
INVESTING ACTIVITIES
Investment in long term marketable securities (26,529)
Investment in real estate company (2,588)
Cash received from sale of subsidiary 58,517
Purchases of property and equipment (739) (1,429)
Other 13 (9)
------------ ----------------
NET CASH PROVIDED BY (USED) IN INVESTING ACTIVITIES 31,262 (4,026)
FINANCING ACTIVITIES
Redemption of preferred stock (4)
Proceeds from long-term obligations 446 8,351
Repayments on long-term obligations and notes payable (19,630) (287)
Proceeds from exercise of stock options 170 10
Acquisition and retirement of common stock (5,723) (434)
Dividends paid on preferred stock (102) (102)
------------ ----------------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (24,843) 7,538
------------ ----------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 820 (448)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 768 647
------------ ----------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,588 $ 199
============ ================
See notes to consolidated financial statements
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MAXCO, INC. AND SUBSIDIARIES
SEPTEMBER 30, 1996
NOTE 1 - Basis of Presentation and Significant Accounting Policies
The accompanying unaudited, condensed, consolidated financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include all of the
information and notes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary
for a fair presentation of the results of the interim periods covered have
been included. For further information, refer to the consolidated financial
statements and notes thereto included in Maxco's annual report on Form 10-K
for the year ended March 31, 1996.
The results of operations for the interim periods presented are not
necessarily indicative of the results for the full year. The effect of stock
options and potential conversion of redeemable convertible preferred stock
was antidilutive for the three and six months ended September 30, 1995.
Effective April 1, 1996, the Company adopted FASB Statement No. 121,
Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets
to be Disposed Of, which requires impairment losses to be recorded on
long-lived assets used in operations when indicators of impairment are
presented and the undiscounted cash flows estimated to be generated by those
assets are less than the assets carrying amount. This statement also
addresses the accounting for long-lived assets that are expected to be
disposed. The effect of adopting FASB Statement No. 121 was not material.
NOTE 2 - DISCONTINUED BUSINESSES
On July 9, 1996, Maxco completed an agreement to sell its 4,045,000 shares
(67 percent interest) of FinishMaster, Inc. and for Maxco to enter into an
agreement not to compete for a total consideration of $62.6 million. More
than 90 percent of the total consideration was in cash, including an initial
payment on the non-compete agreement, with the balance payable over the five
year term of the non-compete agreement. As a result of this transaction, an
after tax gain of $22.0 million was recognized in the second quarter.
Effective October 31, 1996, Maxco sold the business and substantially all the
assets (consisting principally of accounts receivable, inventory and fixed
assets) of Maxco's wholly owned subsidiary, Wright Plastic Products, Inc.,
including substantially all the assets of Wright's subsidiary, Pacer Tool and
Mold, Inc. to Plastic Acquisition Co. LLC, a privately held company who will
continue to operate as Wright Plastic Products. The assets of approximately
$10 million were purchased for cash, assumption of certain liabilities and a
note. The assets were sold at approximately book value.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
MAXCO, INC. AND SUBSIDIARIES
NOTE 2 - Discontinued Businesses - Continued
As a result of the sale, the results of operations for Wright, previously
representing the automotive components products portion of the manufactured
product segment, have been reported separately as discontinued operations in
the consolidated statements of operations. Prior year consolidated financial
statements have been restated to include Wright Plastics as a discontinued
unit.
Selected operating results for Maxco's discontinued businesses (Wright and
FinishMaster) are presented in the following table for the three and six
month periods ended September 30.
Three Months Ended Six Months Ended
September 30, September 30,
1996 1995 1996 1995
--------- --------- --------- ---------
(in thousands) (in thousands)
Net sales $4,318 $31,151 $42,000 $58,623
Cost and expenses 4,417 30,280 40,942 56,779
-------- -------- -------- --------
Income before income taxes (99) 871 1,058 1,844
Income tax expense (benefit) (33) 312 365 662
-------- -------- -------- --------
Net income (66) 559 693 1,182
Minority interest in net earnings
of discontinued businesses (308) (229) (613)
-------- -------- -------- --------
Total income (loss) from
discontinued businesses $ (66) $ 251 $ 464 $ 569
======== ======== ======== ========
Net assets of Maxco's discontinued businesses at September 30, 1996 and March
31, 1996 were:
September 30, March 31,
1996 1996
----------------------------
(in thousands)
Current assets $ 4,448 $ 45,512
Current liabilities (3,116) (19,226)
------------ ------------
Net current assets 1,332 26,286
------------ ------------
Property and equipment 4,316 10,921
Intangible and other 1,267 21,216
Non-current liabilities (2,306) (22,294)
------------ ------------
Net non-current assets of discontinued business 3,277 9,843
------------ ------------
Net assets $ 4,609 $ 36,129
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
MAXCO, INC. AND SUBSIDIARIES
NOTE 3 - Inventories
The major classes of inventories, at the dates indicated were as follows:
September 30, March 31,
1996 1996
----------- ---------
(Unaudited) (Restated-Note 2)
(In Thousands)
Raw materials $1,110 $955
Finished goods and
work in progress 1,938 1,995
Purchased products
for resale 2,361 1,579
----------- ---------
$5,409 $4,529
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NOTE 4 - Marketable Securities
The Company classifies its marketable securities as securities available for
sale under FASB 115, Accounting for Certain Investments in Debt and Equity
Securities. Available-for-sale securities are carried at fair value, with
the unrealized gains and losses, net of tax, reported as a separate component
of stockholders' equity. Application of this method resulted in an
unrealized gain net of deferred tax of approximately $3.0 million and $5.3
million being reported as part of stockholders' equity at September 30, 1996
and March 31, 1996, respectively.
The following is a summary of marketable securities held at September 30,
1996.
Gross Gross
Amortized Unrealized Unrealized Estimated
Cost Gains Loss Fair Value
--------- ---------- ---------- ----------
(in thousands)
Medar, Inc. Common Stock $ 7,396 $ 4,549 $ $11,945
Corporate Securities 17,374 21 17,353
U.S. Government Notes 9,214 27 9,241
--------- ---------- ---------- ----------
$33,984 $ 4,576 $ 21 $38,539
========= ========== ========== ==========
At September 30, 1996, Maxco owned 1,737,405 shares of Medar's common stock
(aggregate market value of $11.9 million) representing less than 20% of Medar's
total common stock outstanding. Subsequent to September 30, 1996, Maxco
purchased in excess of 150,000 shares of Medar stock bringing its ownership
percentage to over 20%. As a result, Maxco will no longer report its Medar
stock as marketable securities and will revert to recording its ownership of
Medar stock on an equity basis beginning in the quarter ended December 31,
1996.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
MAXCO, INC. AND SUBSIDIARIES
The amortized cost and estimated fair value of marketable securities at
September 30, 1996, by contractual maturity is as follows:
Amortized Estimated
Cost Fair Value
(in thousands)
Available-for-Sale
Medar, Inc. Common Stock $ 7,396 $11,945
Due in one year or less 17,921 17,891
Due after one year through five years 4,485 4,499
Due after five years through ten years 4,182 4,204
--------- ---------
$33,984 $38,539
========= =========
NOTE 5 - Long-Term Debt
As a result of the sale of FinishMaster on July 9, 1996, Maxco's revolving
line of credit was reduced to zero at that date. Maxco's revolving credit
agreement allows Maxco to borrow up to $12.0 million on an unsecured basis.
There was no balance outstanding under this line on September 30, 1996.
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
MAXCO, INC. AND SUBSIDIARIES
SEPTEMBER 30, 1996
MATERIAL CHANGES IN FINANCIAL CONDITION
Maxco's cash and cash equivalents increased $820,000 in the first six months of
1996, primarily due to the Company's investing activities.
On July 9, 1996, Maxco completed an agreement to sell its 67 percent interest
in FinishMaster, Inc. The agreement called for Maxco to sell its 4,045,000
shares of FinishMaster and for Maxco to enter into an agreement not to compete
for a total consideration of $62.6 million. More than 90 percent of the total
consideration was in cash, including an initial payment on the non-compete
agreement, with the balance payable over the five year term of the non-compete
agreement. As a result of this transaction, an after tax gain of $22.0 million
was reported during the second quarter.
$21.3 million of the proceeds were used to retire Maxco's revolving line of
credit on that date. The credit agreement was subsequently amended to allow
Maxco to borrow up to $12.0 million on an unsecured basis. Remaining net
proceeds from the sale were invested in marketable securities.
Financing activities other than the repayment of debt was the acquisition and
retirement of approximately 608,000 shares of Maxco's common stock for $5.7
million. Net cash used in operating activities was $5.6 million because of the
seasonal increase in accounts receivable and inventory offset by taxes due on
the FinishMaster sale.
Effective October 31, 1996, Maxco sold the business and substantially all the
assets of Wright Plastic Products, Inc. The assets of approximately $10
million were purchased for cash, the assumption of certain liabilities, and a
note.
The Company believes that its current financial resources, together with cash
generated from operations, cash received from the sale of its discontinued
businesses, and its available resources under its unsecured line of credit will
be adequate to meet its cash requirements for the next year.
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
MAXCO, INC. AND SUBSIDIARIES
(CONTINUED)
MATERIAL CHANGES IN RESULTS OF OPERATIONS
Three Months Ended September 30, 1996 Compared to 1995
Net sales from continuing operations increased to $20.8 million compared to
$17.7 million in last year's second quarter. Second quarter results reflect
earnings from continuing operations of approximately $22.4 million compared to
a loss of $145,000 for the comparable period in 1995. Net income was $22.4
million or $5.27 per share on a fully diluted basis compared to last year's
$106,000 or $.01 per share.
The sales growth for the three months ended September 30, 1996, was primarily
attributable to the construction supplies group (Ersco and Wisconsin Wire).
Sales increased $2.2 million at Maxco's construction supplies businesses as a
result of increased market share.
The most significant impact on earnings during the quarter was the recognition
of a $22.0 million after tax gain on the sale of Maxco's 4,045,000 shares (67
percent interest) of FinishMaster common stock which Maxco sold on July 9,
1996.
Earnings from operations improved from the prior year due to higher operating
earnings at Pak-Sak, primarily as a result of an $800,000 increase in sales
caused by increased market penetration and an improvement in gross margin
percentage at this unit.
Operating earnings at the construction supplies group were comparable with 1995
despite their $2.2 million increase in sales. Gross margin percentage at this
unit was reduced as a result of a highly competitive market for the resteel
portion of their business.
Another significant impact to the improvement in net income was the generation
of interest income during the current quarter as a result of the investment of
the cash proceeds for the sale of Maxco's interest in FinishMaster. Interest
expense was reduced also as a portion of the proceeds were used to retire $21.3
million in debt under its revolving line of credit agreement.
Six Months Ended September 30, 1996 Compared to 1995
Net sales from continuing operations increased to $40.0 million compared to
$36.8 million in last year's six month period. Six month results reflect
earnings from continuing operations of $22.2 million compared to a loss of
$107,000 for the comparable period in 1995. Net income was $22.7 million or
$5.16 on a fully diluted basis per share compared to last year's $462,000 or
$.08 per share.
The primary contribution to the increase in volume for the six months was the
construction supplies group. Sales increased $2.7 million at Maxco's
construction supplies businesses as a result of increased market share. Sales
also improved at Pak-Sak due to improved market share during this period.
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
MAXCO, INC. AND SUBSIDIARIES
(CONTINUED)
The most significant impact on income from continuing operations for this six
month period was the recognition of a $22.0 million after tax gain on the sale
of Maxco's 4,045,000 shares (67 percent interest) of FinishMaster stock which
occurred on July 9, 1996.
Earnings from operations decreased slightly from the comparable period of the
prior year, despite the increased volumes experienced by the Company during the
first six months. An increase in operating earnings at Pak-Sak, due primarily
to its sales volume increase, was offset by a reduction in operating earnings
at Akemi.
Akemi experienced a $250,000 greater operating loss in 1996, compared to the
first six months of 1995. This was due to a reduction in sales volume, coupled
with a lower gross margin percentage than the prior year. In addition,
operating earnings at the construction supplies group increased modestly
despite the sales volume increase for this unit. Operating earnings at this
unit were affected due to gross margin percentage at this unit being reduced
due to a highly competitive market for the resteel portion of their business.
Generation of interest income coupled with reduction in interest expense during
this period contributed to the improvement in earnings for the respective
period.
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PART II
OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
The annual meeting of shareholders was held on August 27, 1996. The
matters voted upon were the election of directors and other business
which may come before the meeting (of which there was none). The
results of the votes were as follows:
For Withheld
--------- ---------
Max A. Coon 4,108,455 18,290
Eric L. Cross 4,093,403 33,342
Charles J. Drake 4,113,903 12,842
Joel I. Ferguson 4,091,903 34,842
Richard G. Johns 4,113,903 12,842
Vincent Shunsky 4,113,888 12,857
J. Michael Warren 4,113,903 12,842
James F. White 4,095,703 31,042
Andrew S. Zynda 4,095,988 30,757
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
3 Restated Articles of Incorporation and By-laws are hereby incorporated
by reference from Form S-4 dated November 4, 1991 (File No. 33-43855).
4.1 Resolution establishing Series Two Preferred Shares is hereby
incorporated by reference from Form S-4 dated November 4, 1991 (File
No. 33-43855).
4.2 Resolution establishing Series Three Preferred Shares is hereby
incorporated by reference from Form S-4 dated November 4, 1991 (File
No. 33-43855).
14
15
10.1 Incentive stock option plan adopted August 15, 1983, including
the amendment (approved by shareholders August 25, 1987) to increase
the authorized shares on which options may be granted by two hundred
fifty thousand (250,000), up to five hundred thousand (500,000) shares
of the common stock of the company is hereby incorporated by reference
from the registrant's annual report on Form 10-K for the fiscal year
ended March 31, 1988.
10.3 Amended and restated loan agreement between Comerica Bank and
Maxco, Inc. dated as of October 31, 1994 is hereby incorporated by
reference from registrant's Form 10-K dated June 13, 1995.
10.4 First amendment to the amended and restated loan agreement
between Comerica Bank and Maxco, Inc., dated as of May 9, 1995 is
hereby incorporated by reference from registrants Form 10-K dated June
13, 1995.
10.5 Second amendment to the amended and restated loan agreement
between Comerica Bank and Maxco, Inc., dated as of September 8, 1995,
is hereby incorporated by reference from registrants Form 10-Q dated
November 10, 1995.
10.6 Third amendment to the amended and restated loan agreement
between Comerica Bank and Maxco, Inc., dated as of May 15, 1996, is
hereby incorporated by reference from registrants Form 10-K dated June
18, 1996.
10.7 Fourth amendment to amended and restated loan agreement dated
as of July 9, 1996 is hereby incorporated by reference from
registrants Form 10-Q dated August 9, 1996.
10.8 Stock Purchase Agreement (sale of FinishMaster, Inc.) effective
July 9, 1996, is hereby incorporated by reference from registrants
Form 10-K dated June 18, 1996.
10.9* Asset purchase agreement - Wright Plastic Products, Inc.
10.10* Amended and restated loan agreement between Comerica Bank and Maxco,
Inc. dated September 30, 1996.
11* Statement Re: Computation of Per Share Earnings
27* Financial Data Schedule
A report on Form 8-K was filed, dated July 9, 1996, disclosing
that Maxco had completed an agreement to sell its 67 percent interest
in FinishMaster, Inc.
*Filed herewith
15
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SIGNATURES
Pursuant to the requirements 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.
MAXCO, INC.
Date November 14, 1996 \S\ VINCENT SHUNSKY
----------------- ---------------------------------------
Vincent Shunsky, Vice President-Finance
and Treasurer (Principal Financial and
Accounting Officer)
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EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
- ----------- -----------
10.9 Asset Purchase Agreement
10.10 Amended and restated loan agreement between Comerica Bank and
Maxco, Inc. dated September 30, 1996.
11 Computation of per share earnings
27 Financial Data Schedule