1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the fiscal year ended December 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from to
---- ----
Commission File Number 0-24268
-----------------
A. Full title of the plan and the address of the plan, if different from that of
the issuer named below:
PALM HARBOR HOMES, INC.
EMPLOYEE SAVINGS PLAN
B. Name of issuer of the securities held pursuant to the plan and the address of
principal executive offices:
PALM HARBOR HOMES, INC.
15303 Dallas Parkway, Suite 800, Dallas, Texas 75248
Issuer's telephone number, including area code: (972) 991-2422
59-1036634
(IRS Employer Identification Number)
2
PALM HARBOR HOMES, INC. EMPLOYEE SAVINGS PLAN
FORM 11-K
FOR THE PERIODS ENDED
December 31, 1997 AND 1996
TABLE OF CONTENTS
Page
Report of Ernst & Young LLP, Independent Auditors........................................................... 1
Statements of Net Assets Available for Benefits............................................................. 3
Statements of Changes in Net Assets Available for Benefits................................................ 6
Notes to Financial Statements............................................................................... 9
Supplemental Schedules:
Schedule of Assets Held for Investment Purposes......................................................15
Schedule of Reportable Transactions..................................................................16
Signature...................................................................................................17
Exhibit Index...............................................................................................18
Exhibit 23 - Consent of Ernst & Young LLP, Independent Auditors.............................................19
3
Report of Ernst & Young LLP, Independent Auditors
Plan Administrator
Palm Harbor Homes, Inc. Employee Savings Plan
We have audited the accompanying statements of net assets available for benefits
of the Palm Harbor Homes, Inc. Employee Savings Plan (the Plan) as of December
31, 1997 and 1996, and the statements of changes in net assets available for
benefits for the year ended December 31, 1997, and for the nine-month period
ended December 31, 1996. These financial statements are the responsibility of
the Plan's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above, present fairly, in
all material respects, the net assets available for benefits of the Plan as of
December 31, 1997 and 1996, and changes in its net assets available for benefits
for the year ended December 31, 1997, and for the nine-month period ended
December 31, 1996, in conformity with generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplemental schedules
of assets held for investment purposes as of December 31, 1997, and reportable
transactions for the year then ended, are presented for purposes of complying
with the Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of 1974, and are
not a required part of the basic financial statements. The Fund Information in
the statements of net assets available for benefits and the statements of
changes in net assets available for benefits is presented for purposes of
additional analysis rather than to present the net assets available for benefits
and changes
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in net assets available for benefits of each fund. The supplemental schedules
and Fund Information have been subjected to the auditing procedures applied in
our audit of the financial statements and, in our opinion, are fairly stated in
all material respects in relation to the financial statements taken as a whole.
ERNST & YOUNG LLP
June 15, 1998
Dallas, Texas
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Palm Harbor Homes, Inc. Employee Savings Plan
Statements of Net Assets Available for Benefits
--------------------------------------------------------------------------------
PALM
HARBOR PURITAN GNMA MAGELLAN
STOCK FUND FUND FUND FUND CONTRAFUND
--------------------------------------------------------------------------------
ASSETS
Investments, at fair value $510,248 $70,902 $53,581 $4,868,169 $5,310,067
Participant loans receivable -- -- -- -- --
-------- ------- ------- ---------- ----------
Total investments 510,248 70,902 53,581 4,868,169 5,310,067
Receivables:
Participants'
contributions 15,677 2,873 2,268 70,565 59,081
Employer's contribution 4,201 769 351 30,104 25,740
Interest income 160 -- -- -- --
-------- ------- ------- ---------- ----------
20,038 3,642 2,619 100,669 84,821
-------- ------- ------- ---------- ----------
Total assets 530,286 74,544 56,200 4,968,838 5,394,888
LIABILITIES
Contributions refundable 16,158 1,287 7 48,851 71,138
Fee Payable 78 -- -- -- --
-------- ------- ------- ---------- ----------
Net assets available for
benefits $514,050 $73,257 $56,193 $4,919,987 $5,323,750
======== ======= ======= ========== ==========
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DECEMBER 31, 1997
-------------------------------------------------------------------------------------------
RETIREMENT
GROWTH AND ASSET DIVERSIFIED GOVERNMENT
INCOME VALUE MANAGER INTERNATIONAL MONEY
FUND FUND FUND FUND MARKET FUND LOAN FUND TOTAL
-------------------------------------------------------------------------------------------
ASSETS
Investments, at fair value $ 5,239,448 $ 168,231 $ 2,251,906 $ 110,048 $ 3,197,645 $ -- $21,780,245
Participant loans receivable -- -- -- -- -- 728,705 728,705
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total investments 5,239,448 168,231 2,251,906 110,048 3,197,645 728,705 22,508,950
Receivables:
Participants'
contributions 70,040 4,516 27,796 3,650 59,506 -- 315,972
Employer's contribution 29,361 963 12,320 821 17,754 -- 122,384
Interest income -- -- -- -- -- -- 160
----------- ----------- ----------- ----------- ----------- ----------- -----------
99,401 5,479 40,116 4,471 77,260 -- 438,516
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total assets 5,338,849 173,710 2,292,022 114,519 3,274,905 728,705 22,947,466
LIABILITIES
Contributions refundable 59,307 1,545 13,873 779 6,799 -- 219,744
Fee Payable -- -- -- -- -- -- 78
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net assets available for
benefits $ 5,279,542 $ 172,165 $ 2,278,149 $ 113,740 $ 3,268,106 $ 728,705 $22,727,644
=========== =========== =========== =========== =========== =========== ===========
See accompanying notes.
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Palm Harbor Homes, Inc. Employee Savings Plan
Statements of Net Assets Available for Benefits (continued)
DECEMBER 31, 1996
------------------------------------------------------------------------------------------------------
RETIREMENT
GROWTH ASSET GOVERNMENT
MAGELLAN AND INCOME MANAGER MONEY
FUND CONTRAFUND FUND FUND MARKET FUND LOAN FUND TOTAL
-------------------------------------------------------------------------------------------------------
ASSETS
Investments, at fair value $ 2,699,199 $ 2,624,446 $ 2,569,748 $ 1,541,486 $ 2,384,100 $ -- $11,818,979
Participant loans receivable -- -- -- -- -- 404,504 404,504
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total investments 2,699,199 2,624,446 2,569,748 1,541,486 2,384,100 404,504 12,223,483
Receivables:
Participants'
contributions 47,335 33,516 31,915 21,048 40,263 -- 174,077
Employer's contribution -- -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- ----------- -----------
47,335 33,516 31,915 21,048 40,263 -- 174,077
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total assets 2,746,534 2,657,962 2,601,663 1,562,534 2,424,363 404,504 12,397,560
LIABILITIES
Contributions refundable 70,709 74,653 69,446 27,117 33,782 -- 275,707
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net assets available for
benefits $ 2,675,825 $ 2,583,309 $ 2,532,217 $ 1,535,417 $ 2,390,581 $ 404,504 $12,121,853
=========== =========== =========== =========== =========== =========== ===========
See accompanying notes.
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Palm Harbor Homes, Inc. Employee Savings Plan
Statements of Changes in Net Assets Available for Benefits
--------------------------------------------------------------------------------
PALM
HARBOR PURITAN GNMA MAGELLAN
STOCK FUND FUND FUND FUND CONTRAFUND
--------------------------------------------------------------------------------
Net assets available for benefits at
beginning of period $ -- $ -- $ -- $ 2,675,825 $ 2,583,309
Additions to net assets:
Net appreciation (depreciation) in
fair value of investments 32,578 561 741 535,326 277,738
Dividend and interest income -- 4,044 1,655 280,005 490,764
Interest on loans to participants 655 293 -- 10,334 7,605
Participants' contributions 124,903 21,477 18,261 1,051,877 1,051,082
Employer contributions 32,920 6,211 3,432 457,104 497,930
Rollover contributions 1,022 -- 296 108,428 61,137
Transfer from Newco Homes, L.P.
Tax Savings Plan 26,210 7,999 969 260,882 1,061,310
----------- ----------- ----------- ----------- -----------
218,288 40,585 25,354 2,703,956 3,447,566
Deductions from net assets:
Distributions to participants 14,097 1,351 1,081 374,311 293,147
Miscellaneous 81 -- -- 3,019 481
----------- ----------- ----------- ----------- -----------
14,178 1,351 1,081 377,330 293,628
Other changes:
Net increase (decrease) in loans to
participants (724) 820 (1,395) (58,864) (17,151)
Net interfund transfers 310,664 33,203 33,315 (23,600) (396,346)
----------- ----------- ----------- ----------- -----------
Net assets available for benefits at
end of period $ 514,050 $ 73,257 $ 56,193 $ 4,919,987 $ 5,323,750
=========== =========== =========== =========== ===========
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YEAR ENDED DECEMBER 31, 1997
----------------------------------------------------------------------------------------------------------------
RETIREMENT
GROWTH GOVERNMENT
AND ASSET DIVERSIFIED MONEY
INCOME VALUE MANAGER INTERNATIONAL MARKET
FUND FUND FUND FUND FUND LOAN FUND TOTAL
----------------------------------------------------------------------------------------------------------------
Net assets available for benefits at
beginning of period $ 2,532,217 $ -- $ 1,535,417 $ -- $ 2,390,581 $ 404,504 $12,121,853
Additions to net assets:
Net appreciation (depreciation) in
fair value of investments 734,568 (12,067) 187,867 (3,614) -- -- 1,753,698
Dividend and interest income 215,197 22,005 190,651 4,282 151,905 -- 1,360,508
Interest on loans to participants 6,476 284 6,192 13 10,068 -- 41,920
Participants' contributions 1,052,792 34,867 424,603 34,860 810,775 -- 4,625,497
Employer contributions 460,578 11,060 195,766 11,340 (8,643) -- 1,667,698
Rollover contributions 120,925 -- 5,092 148 6,190 -- 303,238
Transfer from Newco Homes, L.P.
Tax Savings Plan 479,627 23,938 52,513 49,062 410,695 -- 2,373,205
----------- ----------- ----------- ----------- ----------- ----------- -----------
3,070,163 80,087 1,062,684 96,091 1,380,990 -- 12,125,764
Deductions from net assets:
Distributions to participants 221,813 12,473 133,317 13,430 344,320 55,545 1,464,885
Miscellaneous 2,250 -- 3,994 -- 45,263 -- 55,088
----------- ----------- ----------- ----------- ----------- ----------- -----------
224,063 12,473 137,311 13,430 389,583 55,545 1,519,973
Other changes:
Net increase (decrease) in loans to
participants (128,226) (144) (45,691) (340) (128,031) 379,746 --
Net interfund transfers 29,451 104,695 (136,950) 31,419 14,149 -- --
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net assets available for benefits at
end of period $ 5,279,542 $ 172,165 $ 2,278,149 $ 113,740 $ 3,268,106 $ 728,705 $22,727,644
=========== =========== =========== =========== =========== =========== ===========
See accompanying notes.
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Palm Harbor Homes, Inc. Employee Savings Plan
Statements of Changes in Net Assets Available for Benefits (continued)
NINE-MONTH PERIOD ENDED DECEMBER 31, 1996
------------------------------------------------------------------------------------------------------
RETIREMENT
GROWTH GOVERNMENT
AND ASSET MONEY
MAGELLAN INCOME MANAGER MARKET
FUND CONTRAFUND FUND FUND FUND LOAN FUND TOTAL
--------------- --------------------------------------------------------------------------------------
Net assets available for
benefits at beginning of
period $ 1,890,418 $ 1,536,934 $ 1,482,069 $ 1,142,100 $ 1,912,714 $ 315,512 $ 8,279,747
Additions to net assets:
Net appreciation
(depreciation) in fair
value of investments (93,349) 206,507 172,438 32,410 -- -- 318,006
Dividend and interest
income 309,256 101,387 101,521 106,071 81,793 20,281 720,309
Participants' contributions 525,752 389,374 335,420 225,706 385,092 -- 1,861,344
Employer contributions 175,248 141,204 116,755 75,282 18,227 -- 526,716
Rollover contributions 79,428 77,208 53,965 13,076 7,723 -- 231,400
Transfers to the plan 172,140 184,504 149,099 11,973 25,338 -- 543,054
----------- ----------- ------------ ----------- ------------ ------------ -----------
1,168,475 1,100,184 929,198 464,518 518,173 20,281 4,200,829
Deductions from net assets:
Distributions to
participants 52,343 66,456 61,978 20,595 96,289 13,845 311,506
Miscellaneous 19,356 11,147 16,302 7,978 (7,566) -- 47,217
----------- ----------- ----------- ----------- ------------ ------------ -----------
71,699 77,603 78,280 28,573 88,723 13,845 358,723
Other changes:
Net increase (decrease) in
loans to participants (15,277) (1,956) (21,035) (27,538) (37,031) 102,837 --
Net interfund transfers (296,092) 25,750 220,265 (15,090) 85,448 (20,281) --
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net assets available for
benefits at end of period $ 2,675,825 $ 2,583,309 $ 2,532,217 $ 1,535,417 $ 2,390,581 $ 404,504 $12,121,853
=========== =========== =========== =========== =========== =========== ===========
See accompanying notes
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Palm Harbor Homes, Inc. Employee Savings Plan
Notes to Financial Statements
December 31, 1997
1. DESCRIPTION OF PLAN
The following description of the Palm Harbor Homes, Inc. Employee Savings Plan
(Plan) provides only general information. Participants should refer to the
Summary Plan Description for a more complete description of the Plan's
provisions.
GENERAL
The Plan is a defined contribution plan covering all employees of Palm Harbor
Homes, Inc. (the Company) and an unrelated employer who have at least three
consecutive months of service. The Plan is subject to the provisions of the
Employee Retirement Income Security Act of 1974 (ERISA).
Effective April 1, 1996, the Company amended the Plan in order to change the
Plan's fiscal year from April 1 through March 31 to January 1 through December
31 and to designate certain entities as participating employers as defined in
the Plan.
Effective January 1, 1997, the Company merged the Newco Homes, L.P. Tax Savings
Plan into the Plan. In conjunction with the merger, the Company amended the Plan
to decrease the service requirements for eligibility.
Effective April 1, 1997, the Company amended the Plan to change the Plan's
definition of Predecessor Employer.
Effective January 1, 1998, the Company amended the Plan to change a
participant's vested interest in his employer matching contributions and to
allow for the merger of the participants of the Cedar Creek Pro Plan from Ken
McGee Enterprises, Inc. to be merged with the Plan.
CONTRIBUTIONS
Each year, participants may contribute up to 15% of pretax annual compensation,
as defined in the Plan. Participants may also contribute amounts representing
distributions from other qualified plans. The Company contributed 50% of the
first 6% of compensation that a participant contributes to the Plan.
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Palm Harbor Homes, Inc. Employee Savings Plan
Notes to Financial Statements (continued)
1. DESCRIPTION OF PLAN (CONTINUED)
PARTICIPANT ACCOUNTS
Each participant's account is credited with the participant's contributions, the
Company's matching contributions and allocations of Plan earnings. Allocations
of plan earnings are based on participant account balances, as defined. The
benefit to which a participant is entitled is the benefit that can be provided
from the participant's account. Forfeited balances of terminated participants'
nonvested accounts are used to reduce Plan expenses and/or future Company
contributions. During 1997, the Company funded many of its contributions using
these forfeitures as evidenced by the negative employer contribution in the
Retirement Government Money Market Fund which held the forfeited monies. At
December 31, 1997 and 1996, $20,245 and $102,650, respectively, were available
to be used for Plan expenses or future Company contributions.
VESTING
Participants are immediately vested in their contributions plus actual earnings
thereon. Vesting in the Company contribution portion of their accounts plus
actual earnings thereon is based on years of continuous service. A participant
is 100 percent vested after five years of credited service. There is no vesting
of Company contributions prior to five years of service.
INVESTMENT OPTIONS
Upon enrollment in the Plan, a participant may direct employer and employee
contributions in 1% increments in any of five investment options.
Magellan Fund - The Magellan Fund, which is a mutual fund, invests in a
diversified portfolio of common stocks and securities convertible to
common stock issued by companies of all sizes operating in the U.S.
and/or abroad as well as foreign companies.
Contrafund - The Contrafund, which is a mutual fund, invests primarily
in common stocks and securities convertible to common stock.
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Palm Harbor Homes, Inc. Employee Savings Plan
Notes to Financial Statements (continued)
1. DESCRIPTION OF PLAN (CONTINUED)
Growth and Income Fund - The Growth and Income Fund, which is a mutual
fund, invests in both foreign and domestic issuers of common stock,
securities convertible to common stock, preferred stock, and
fixed-income securities.
Asset Manager Fund - The Asset Manager Fund, which is a mutual fund,
invests in domestic and foreign equities, bonds, and short-term
instruments.
Retirement Government Money Market Fund - The Retirement Government
Money Market Fund, which is a mutual fund, invests in obligations
issued or guaranteed as to principal and interest by the U.S.
government, its agencies or instrumentalities and in repurchase
agreements secured by these obligations. An investment in the portfolio
is neither insured nor guaranteed by the U.S. Government.
Palm Harbor Stock Fund - The Palm Harbor Stock Fund, which is a
unitized stock fund, is comprised of the underlying company stock and a
short-term cash component (usually 98% common stock and 2% money
market).
Puritan Fund - The Puritan Fund, which is a mutual fund, invests in
common and preferred stocks, bonds, and other equity and fixed income
securities.
GNMA Fund - The GNMA Fund, which is a mutual fund, invests in Ginnie
Maes, other U.S. Government securities, or various other instruments
related to U.S. Government securities.
Value Fund - The Value Fund, which is a mutual fund, invests primarily
in stocks and convertible securities.
Diversified International Fund - The Diversified International Fund,
which is a mutual fund, invests in domestic equity securities along
with foreign and domestic debt securities.
Participants may change their investment options daily.
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Palm Harbor Homes, Inc. Employee Savings Plan
Notes to Financial Statements (continued)
1. DESCRIPTION OF PLAN (CONTINUED)
PARTICIPANT LOANS RECEIVABLE
Participants may borrow from their fund accounts a minimum of $1,000 up to the
lesser of 50% of their vested account balance or $50,000 (adjusted for loan
payments during the previous year). A participant may have only one loan
outstanding at any time. Loan transactions are treated as a transfer from (to)
the investment fund to (from) the loan fund. Loan terms range from up to 5 years
or up to 10 years for the purchase of a primary residence. The loans are secured
by the balance in the participant's account and bear interest at a rate
commensurate with local prevailing rates (prime rate plus 1%) as determined by
the Plan Administrator. Principal and interest is paid ratably through monthly
payroll deductions.
PAYMENT OF BENEFITS
On termination of service, a participant or beneficiary may receive a lump-sum
amount equal to the vested value of his or her account, or upon death,
disability, or retirement, elect to receive annual installments over a period
certain which does not extend beyond the life expectancy of the participant or
his beneficiary. Upon the death of a participant who is a current employee, the
account is automatically 100% vested. If a participant's account is $3,500 or
less, the balance of such account will be distributed in a lump-sum amount upon
retirement, disability, death or termination of employment.
PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the right
under the Plan to discontinue its contributions at any time and to terminate the
Plan subject to the provisions of ERISA. In the event of Plan termination,
participants will become 100% vested in their accounts.
2. SUMMARY OF ACCOUNTING POLICIES
INVESTMENTS
Investments in mutual funds are recorded at fair value as determined by quoted
market prices in an active market. Investments in the unitized stock fund are
recorded at fair value as determined by the combined market values of the
underlying common stock and
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Palm Harbor Homes, Inc. Employee Savings Plan
Notes to Financial Statements (continued)
2. SUMMARY OF ACCOUNTING POLICIES (CONTINUED)
short-term cash position. The market value of the common stock portion of the
fund is based on the closing price of the common stock on its primary exchange
times the number of shares held in the fund.
ADMINISTRATIVE EXPENSES
Costs and expenses of administering the Plan are paid by the Company, unless
paid by the Plan.
BASIS OF ACCOUNTING
The financial statements are prepared on the accrual basis of accounting.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and accompanying notes.
Actual results could differ from those estimates.
3. INVESTMENTS
Investments are held by the Plan's trustee, Fidelity Management Trust Company.
Individual investments that represent 5% or more of the Plan's net assets at
December 31 are as follows:
1997 1996
--------------------------------------------
Investments, at fair value:
Fidelity Magellan Fund $4,868,169 $2,699,199
Fidelity Contrafund 5,310,067 2,624,446
Fidelity Growth and Income Fund 5,239,448 2,569,748
Fidelity Asset Manager Fund 2,251,906 1,541,486
Fidelity Retired Government Money Market Fund 3,197,645 2,384,100
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Palm Harbor Homes, Inc. Employee Savings Plan
Notes to Financial Statements (continued)
4. INCOME TAX STATUS
The Internal Revenue Service has determined and informed the Company by a letter
dated August 11, 1995, that the Plan and related trust are designed in
accordance with applicable sections of the Internal Revenue Code (IRC). The Plan
has been amended since receiving the determination letter. However, the Plan
administrator believes that the Plan is designed and is currently being operated
in compliance with the applicable requirements of the IRC.
5. CONTRIBUTIONS REFUNDABLE
Contributions refundable represent excess contributions refundable to certain
participants in order to comply with certain nondiscrimination requirements.
6. ADMINISTRATION
The Plan is administered by the Company. Fidelity Management Trust Company
serves as trustee and Fidelity Institutional Retirement Services Company serves
as recordkeeper.
7. YEAR 2000 ISSUE (UNAUDITED)
The Plan Sponsor has developed a plan to modify its internal information
technology to be ready for the year 2000 and has begun converting critical data
processing systems. The project also includes determining whether third party
service providers have reasonable plans in place to become Year 2000 compliant.
The Plan Sponsor currently expects the project to be substantially complete by
early 1999. The Plan Sponsor does not expect this project to have a significant
effect on plan operations.
8. SUBSEQUENT EVENT
During June 1998, the Company is expected to approve an amendment, effective
July 1, 1998, authorizing the merger of the following 401(k) plans into the
Plan: Countryside Mobile Homes, Inc. 401(k) Plan, Cannon Mobile Homes, Inc.
401(k) Plan, All Star Homes, Inc. 401(k) Plan, Cannon Manufacturing Housing
Group 401(k) Plan, and Star Mobile Homes, Inc. 401(k) Plan, (collectively, the
Merged Plans). This amendment will also make the Merged Plans' participants
eligible for participation in the Plan.
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Palm Harbor Homes, Inc. Employee Savings Plan
Line 27a - Schedule of Assets Held for Investment Purposes
December 31, 1997
(c)
DESCRIPTION OF INVESTMENT
(b) INCLUDING MATURITY DATE, RATE OF
IDENTITY OF ISSUE, BORROWER, INTEREST, COLLATERAL, PAR, OR (d) (e)
(a) LESSOR, OR SIMILAR PARTY MATURITY VALUE COST CURRENT VALUE
- --------------------------------------------------------------------------------------------------------------------------------
* Fidelity Management Trust Company:
Magellan Fund;
51,099 shares $ 4,279,889 $ 4,868,169
Contrafund; 113,877 shares 4,829,194 5,310,067
Growth and Income Fund;
137,518 shares 4,191,450 5,239,448
Asset Manager Fund;
122,720 shares 2,020,913 2,251,906
Retirement Government Money
Market Fund; 3,197,646 shares 3,197,646 3,197,645
Palm Harbor Stock Fund;
33,847 shares 485,251 501,445
Palm Harbor Stock Fund (interest-
bearing cash); 8,803 shares 8,803 8,803
Puritan Fund; 3,659 shares 70,376 70,902
GNMA Fund; 4,920 shares 53,010 53,581
Value Fund; 3,113 shares 181,824 168,231
Diversified International Fund;
6,823 shares 114,466 110,048
* Participants Loans with interest rates from 7%
to 10%; various maturity dates
through 2002; secured by
participant vested accrued benefits -- 728,705
------------ ------------
$ 19,432,822 $ 22,508,950
============ ============
*Denotes party-in-interest
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Palm Harbor Homes, Inc. Employee Savings Plan
Line 27d - Schedule of Reportable Transactions
(f)
(c) (d) (e) EXPENSE
(a) (b) PURCHASE SELLING LEASE INCURRED WITH
IDENTITY OF PARTY INVOLVED DESCRIPTION OF ASSET PRICE PRICE RENTAL TRANSACTION
- ----------------------------------------------------------------------------------------------------------------------------------
Category (iii) - Series of transactions in excess of 5% of Plan assets
Fidelity Mgmt. Trust Co.* Magellan Fund $ 2,428,794 $ -- $ -- $ --
-- 795,150 -- --
Fidelity Mgmt. Trust Co.* Contrafund Fund 3,380,456 -- -- --
-- 972,572 -- --
Fidelity Mgmt. Trust Co.* Growth and Income Fund 2,605,846 -- -- --
-- 670,713 -- --
Fidelity Mgmt. Trust Co.* Asset Manager Fund 978,925 -- -- --
-- 456,371 -- --
Fidelity Mgmt. Trust Co.* Retirement Government Money 1,803,966 -- -- --
Market Fund -- 990,420 -- --
(h)CURRENT
VALUE
(g) OF ASSET ON (i)
(a) (b) COST TRANSACTION NET GAIN
IDENTITY OF PARTY INVOLVED DESCRIPTION OF ASSET OF ASSET DATE OR (LOSS)
- -------------------------------------------------------------------------------------------------------------------------
Category (iii) - Series of transactions in excess of 5% of Plan assets
Fidelity Mgmt. Trust Co.* Magellan Fund $ 2,428,794 $ 2,428,794 $ --
714,003 795,150 81,147
Fidelity Mgmt. Trust Co.* Contrafund Fund 3,380,456 3,380,456 --
838,387 972,572 134,185
Fidelity Mgmt. Trust Co.* Growth and Income Fund 2,605,846 2,605,846 --
581,889 670,713 88,824
Fidelity Mgmt. Trust Co.* Asset Manager Fund 978,925 978,925 --
416,313 456,371 40,058
Fidelity Mgmt. Trust Co.* Retirement Government Money 1,803,966 1,803,966 --
Market Fund 990,420 990,420 --
There were no category (i), (ii), or (iv) reportable transactions during the
year ended December 31, 1997.
*Denotes party-in-interest
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, Palm Harbor
Homes, Inc., the administrator of the Employees Savings Plan of Palm harbor
Homes, Inc., has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
PALM HARBOR HOMES, INC. EMPLOYEES SAVINGS PLAN
Date: June 19, 1998
PALM HARBOR HOMES, INC.
/s/ Ralph Russell
----------------------------------------------
Ralph Russell, Vice President - Administration
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EXHIBIT INDEX
EXHIBIT SUBMISSION MEDIA
23. Consent of Ernst & Young LLP, Electronic
Independent Auditors,
dated June 19, 1998
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