1
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 quarter ended May 30, 1998
_______
REGISTRANT: CLARCOR Inc. (Delaware)
_______
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FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended May 30, 1998 Commission File Number 1-11024
CLARCOR Inc.
---------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 36-0922490
- ------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2323 Sixth Street, P.O. Box 7007, Rockford, Illinois 61125
- ---------------------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 815-962-8867
------------
No Change
- --------------------------------------------------------------------------------
(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 (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
--- ---
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the close of the period covered by this report.
24,438,377 common shares outstanding
----------------------------------------
Page 1 of 13
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Part I - Item 1
CLARCOR Inc.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Dollars in thousands)
________
May 30, November 30,
ASSETS 1998 1997
----------- ------------
(unaudited)
Current assets:
Cash and short-term cash investments $ 27,569 $ 30,324
Accounts receivable, less allowance for losses
of $2,939 for 1998 and $2,106 for 1997 64,837 62,387
Inventories:
Raw materials 19,527 19,980
Work in process 8,777 8,547
Finished products 32,370 29,755
----------- ------------
Total inventories 60,674 58,282
----------- ------------
Prepaid expenses 1,348 1,417
Other current assets 5,396 8,117
----------- ------------
Total current assets 159,824 160,527
----------- ------------
Plant assets, at cost 186,738 180,619
less accumulated depreciation (102,757) (97,714)
----------- ------------
83,981 82,905
----------- ------------
Excess of cost over fair value of assets acquired,
less accumulated amortization 19,616 15,777
Pension assets 15,223 13,897
Other noncurrent assets 14,009 9,413
----------- ------------
$ 292,653 $ 282,519
=========== ============
LIABILITIES
Current liabilities:
Current portion of long-term debt $ 825 $ 1,140
Accounts payable 24,051 22,168
Income taxes 2,858 4,944
Accrued and other liabilities 25,694 25,985
----------- ------------
Total current liabilities 53,428 54,237
----------- ------------
Long-term debt, less current portion 37,606 37,656
Long-term pension liabilities 8,643 7,556
Other long-term liabilities 10,795 11,011
Minority interests 852 897
Contingencies
SHAREHOLDERS' EQUITY
Capital stock 24,438 16,162
Retained earnings 154,723 154,843
Other shareholders' equity 2,168 157
----------- ------------
181,329 171,162
----------- ------------
$ 292,653 $ 282,519
=========== ============
See Notes to Consolidated Condensed Financial Statements
Page 2 of 13
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CLARCOR Inc.
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(Dollars in thousands except per share data)
(Unaudited)
_________
Three Months Ended Six Months Ended
-------------------------- -------------------------
May 30, May 31, May 30, May 31,
1998 1997 1998 1997
---------- ------------- ----------- ------------
Net sales $ 107,266 $ 96,684 $ 205,052 $ 183,642
Cost of sales 72,417 66,818 141,428 129,268
---------- ------------- ----------- ------------
Gross profit 34,849 29,866 63,624 54,374
Selling and administrative expenses 21,434 17,995 41,319 35,161
Merger-related expenses - - - 2,972
---------- ------------- ----------- ------------
Operating profit 13,415 11,871 22,305 16,241
---------- ------------- ----------- ------------
Other income (expense):
Interest expense (614) (635) (1,178) (1,440)
Interest income 195 171 633 459
Gain on sale of marketable securities - - - 1,706
Other, net (183) (143) (414) (54)
---------- ------------- ----------- ------------
(602) (607) (959) 671
---------- ------------- ----------- ------------
Earnings before income taxes and
minority interests 12,813 11,264 21,346 16,912
Provision for income taxes 4,753 4,176 7,958 6,786
---------- ------------- ----------- ------------
Earnings before minority interests 8,060 7,088 13,388 10,126
Minority interests in earnings of subsidiaries (30) (40) (21) (61)
---------- ------------- ----------- ------------
Net earnings $ 8,030 $ 7,048 $ 13,367 $ 10,065
========== ============= =========== ============
Net earnings per common share *
Basic $ 0.33 $ 0.29 $ 0.55 $ 0.42
========== ============= =========== ============
Diluted $ 0.32 0.29 0.54 0.41
========== ============= =========== ============
Average number of common shares outstanding *
Basic 24,396,524 24,116,004 24,336,846 24,047,133
========== ============= =========== ============
Diluted 24,784,824 24,412,553 24,642,138 24,338,402
========== ============= =========== ============
Dividends paid per share * $ 0.1100 $ 0.1083 $ 0.2200 $ 0.2166
========== ============= =========== ============
*Adjusted to reflect a three-for-two stock split effective April 24, 1998.
See Notes to Consolidated Condensed Financial Statements
Page 3 of 13
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CLARCOR Inc.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
________
Six Months Ended
---------------------
May 30, May 31,
1998 1997
---------- --------
Cash flows from operating activities:
Net earnings $13,367 $ 10,065
Depreciation and amortization 6,220 5,911
Gain on sale of marketable securities - (1,706)
Changes in assets and liabilities (8,476) (5,239)
Other, net 92 (192)
---------- --------
Net cash provided by operating activities 11,203 8,839
---------- --------
Cash flows from investing activities:
Additions to plant assets (6,948) (5,377)
Business acquisitions, net of cash acquired (4,800) (846)
Investment in affiliate (260) (38)
Proceeds from sale of marketable securities - 3,322
Proceeds from note receivable 2,500 -
Dispositions of plant assets 510 302
---------- --------
Net cash used in investing activities (8,998) (2,637)
---------- --------
Cash flows from financing activities:
Borrowings under long-term debt - 1,000
Reduction of long-term debt (1,127) (12,845)
Cash dividends paid (5,342) (5,005)
Other, net 1,556 1,211
---------- --------
Net cash used in financing activities (4,913) (15,639)
---------- --------
Net effect of exchange rate changes on cash (47) (101)
---------- --------
Net change in cash and short-term cash investments (2,755) (9,538)
Cash and short-term cash investments,
beginning of period 30,324 18,827
---------- --------
Cash and short-term cash investments,
end of period $27,569 $ 9,289
========== ========
Cash paid during the period for:
Interest $ 1,231 $ 1,567
========== ========
Income taxes $ 8,958 $ 6,622
========== ========
See Notes to Consolidated Condensed Financial Statements
Page 4 of 13
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CLARCOR Inc.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Dollars in Thousands, Except Per Share Data)
(Unaudited)
- --------------------------------------------------------------------------------
1. CONSOLIDATED FINANCIAL STATEMENTS
The November 30, 1997 consolidated balance sheet data was derived from
CLARCOR's year-end audited financial statements, but does not include all
disclosures required by generally accepted accounting principles. Certain
information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted.
The consolidated condensed balance sheet as of May 30, 1998, the
consolidated condensed statements of earnings and the consolidated
condensed statements of cash flows for the periods ended May 30, 1998, and
May 31, 1997, have been prepared by the Company without audit. The
financial statements have been prepared on the same basis as those in the
Company's November 30, 1997 annual report to shareholders. In the opinion
of management, all adjustments (which include only normal recurring
adjustments) necessary to present fairly the financial position, results
of operations, and cash flows have been made. The results of operations
for the period ended May 30, 1998 are not necessarily indicative of the
operating results for the full year.
2. STOCK SPLIT AND EARNINGS PER SHARE
On March 24, 1998, the Company declared a three-for-two stock split
effected in the form of a 50% stock dividend distributable April 24, 1998
to shareholders of record April 10, 1998. In connection therewith, the
Company transferred $8,145 from retained earnings to common stock,
representing the par value of additional shares issued. All share and per
share amounts for all periods presented have been adjusted to reflect the
stock split.
During the quarter ended February 28, 1998, the Company adopted Statement
of Financial Accounting Standards No. 128, "Earnings per Share" (EPS),
which simplifies the calculation of earnings per share and requires
presentation of both basic and diluted earnings per share on the
Consolidated Condensed Statements of Earnings. Diluted earnings per share
reflects the impact of outstanding stock options if exercised during the
periods presented using the treasury stock method. The following table
provides a reconciliation of the numerators and denominators utilized in
the calculation of basic and diluted EPS.
Page 5 of 13
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CLARCOR Inc.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Dollars in Thousands, Except Per Share Data)
(Unaudited) Continued
- --------------------------------------------------------------------------------
2. STOCK SPLIT AND EARNINGS PER SHARE (Continued)
Quarter Ended Six Months Ended
------------------------- ------------------------
May 30, May 31, May 30, May 31,
1998 1997 1998 1997
------------------------- ------------------------
Net Earnings (Numerator) $ 8,030 $ 7,048 $ 13,367 $ 10,065
Basic EPS:
Weighted average number of common
shares outstanding (denominator) 24,396,524 24,116,004 24,336,846 24,047,133
Basic per share amount $ 0.33 $ 0.29 $ 0.55 $ 0.42
Diluted EPS:
Weighted average number of common
shares outstanding 24,396,524 24,116,004 24,336,846 24,047,133
Effect of dilutive securities due to
stock options 388,300 296,549 305,292 291,269
----------- ------------ ----------- -----------
Diluted weighted average number
of common shares outstanding
(denominator) 24,784,824 24,412,553 24,642,138 24,338,402
Diluted per share amount $ 0.32 $ 0.29 $ 0.54 $ 0.41
3. BUSINESS COMBINATIONS AND MERGER-RELATED COSTS
On February 20, 1998, the Company purchased Air Technologies, Inc.
(ATI), an Ottawa, Kansas manufacturer of air filtration products for cash.
ATI is part of Airguard Industries Inc., a subsidiary of the Company. The
acquisition did not have a significant impact on the results of the
Company.
On February 28, 1997, the Company completed its acquisition of United
Air Specialists, Inc. (UAS), a manufacturer of air quality equipment based
in Cincinnati, Ohio. The Company issued 1,622,612 shares (on a post-split
basis) of its common stock in exchange for all the shares of UAS stock.
Additional shares of its common stock (approximately 191,385 shares on a
post-split basis) will be issued upon exercise of UAS options. The
transaction has been structured as a statutory merger accounted for as a
pooling of interests. As a result of the acquisition, UAS became a
subsidiary of the Company. During the first quarter of 1997, the Company
incurred a one-time pre-tax charge of $2,972 ($2,390 net of tax) covering
the costs of the merger including legal and professional fees, non-compete
agreements, and costs to integrate the businesses of the two companies.
Page 6 of 13
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CLARCOR Inc.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Dollars in Thousands, Except Per Share Data)
(Unaudited) Continued
- --------------------------------------------------------------------------------
4. SEGMENT DATA
The Company operates in three principal product segments: Engine/Mobile
Filtration, Industrial/Environmental Filtration, and Consumer Packaging.
The segment data for the quarter and six-month periods ended May 30, 1998
and May 31, 1997, respectively, are shown below. Net sales represent
sales to unaffiliated customers, as reported in the consolidated condensed
statements of earnings. Intersegment sales were not material.
1998
--------------------------------------
Quarter Ended
----------------------- Six
Feb. 28 May 30 Months
--------------------------------------
NET SALES BY SEGMENT:
Engine/Mobile Filtration $51,625 $ 57,916 $109,541
Industrial/Environmental Filtration 31,621 32,442 64,063
Consumer Packaging 14,540 16,908 31,448
--------------------------------------
$97,786 $107,266 $205,052
======================================
OPERATING PROFIT BY SEGMENT:
Engine/Mobile Filtration $ 7,418 $ 10,210 $ 17,628
Industrial/Environmental Filtration 538 1,332 1,870
Consumer Packaging 934 1,873 2,807
--------------------------------------
$ 8,890 $ 13,415 $ 22,305
======================================
1997
--------------------------------------
Quarter Ended
----------------------- Six
March 1 May 31 Months
--------------------------------------
NET SALES BY SEGMENT:
Engine/Mobile Filtration $46,353 $53,526 $ 99,879
Industrial/Environmental Filtration 26,201 25,778 51,979
Consumer Packaging 14,404 17,380 31,784
--------------------------------------
$86,958 $96,684 $183,642
======================================
OPERATING PROFIT BY SEGMENT:
Engine/Mobile Filtration $ 6,282 $ 9,065 $ 15,347
Industrial/Environmental Filtration 214 772 986
Consumer Packaging 846 2,034 2,880
--------------------------------------
7,342 11,871 19,213
Merger-related expenses (2,972) - (2,972)
--------------------------------------
$ 4,370 $11,871 $ 16,241
======================================
Page 7 of 13
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Part II - Item 2
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
On March 24, 1998, CLARCOR's Board of Directors declared a three-for-two stock
split of its common shares effected in the form of a 50% stock dividend
effective April 24, 1998. All appropriate amounts have been adjusted to
reflect the stock split. On February 28, 1997, the Company completed the
merger with United Air Specialists, Inc. (UAS) which was accounted for as a
pooling of interests, and as a result, all periods presented include UAS. The
first quarter of 1997 included the effect of costs related to the UAS merger of
$2,972,000 (after-tax, $2,390,000 or $0.10 basic and diluted earnings per
share) and a gain from the sale of marketable securities of $1,706,000
(after-tax, $1,092,000 or $0.05 basic and $0.04 diluted earnings per share).
RESULTS OF OPERATIONS
SECOND QUARTER 1998 COMPARED WITH SECOND QUARTER OF 1997.
CLARCOR's results of operations in the second quarter of 1998 were at record
levels as a result of strong performance by the Company's filtration segments.
Net sales of $107,266,000 increased 10.9% over the 1997 quarter. The
Engine/Mobile Filtration segment recorded increased sales of 8.2% over the 1997
quarter as a result of higher levels of shipments for each product line,
heavy-duty, light-duty and railroad filtration products. The
Industrial/Environmental Filtration segment recorded a 25.8% increase in sales
over the 1997 quarter as a result of increased shipments for both Airguard and
UAS and the additional sales from ATI. Excluding the ATI sales, the segment's
second quarter sales increased approximately 17% over 1997. Net sales for the
Consumer Packaging segment were 2.7% lower, primarily as a result of the sale
in the fourth quarter of 1997 of the segment's aluminum tube division.
Excluding the impact of the tube sales in 1997, sales from the segment's
ongoing operations increased approximately 8.6% over 1997.
Operating profit for the second quarter 1998 increased 13.0% from the 1997
quarter and resulted primarily from the increased shipment levels and
productivity increases. Operating margin for the quarter increased to 12.5%
compared to 9.1% for the first quarter of 1998 and 12.3% for the second quarter
of 1997. Competitive pricing pressure in each segment continues to be offset
by cost reductions and productivity improvements. The Engine/Mobile Filtration
segment's operating profit increased 12.6% on the strength of the higher sales
levels and from productivity increases at each of the manufacturing facilities.
Substantially improved operating profit by the Industrial/Environmental
Filtration segment resulted from significant increases in sales for the quarter
and the ongoing manufacturing improvement initiatives at each location.
Operating profit was 7.9% lower for the Consumer Packaging segment. The lower
level of operating profit resulted from a change in the product mix of
shipments for the quarter, charges related to several customer accounts which
are being closely monitored for collection, and the profit included in 1997
from the Tube Division which did not recur in 1998.
Earnings before income taxes and minority interests increased to $12,813,000
from $11,264,000 recorded in the 1997 quarter primarily as a result of the
$1,544,000 increase in operating profit. Net other expense was approximately
$600,000 in both quarters.
Page 8 of 13
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MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, Continued
The provision for income taxes increased to $4,753,000 in 1998 and the
effective tax rate was 37.1% for both the 1998 and 1997 quarters.
Net earnings for the quarter of $8,030,000 resulted in basic earnings per share
of $0.33 compared to $0.29 in 1997, an increase of 13.8% and diluted earnings
per share increased 10.3% to $0.32 compared to $0.29 in the 1997 quarter.
SIX MONTHS 1998 COMPARED TO SIX MONTHS OF 1997.
Net sales of $205,052,000 increased 11.7% from $183,642,000 reported for the
first six months of fiscal 1997. The Engine/Mobile Filtration segment reported
increased sales of 9.7% to $109,541,000 from $99,879,000 recorded in 1997.
This increase resulted from growth in heavy-duty and light-duty aftermarket
sales and increased sales of filtration products for the railroad industry.
The Company's Industrial/Environmental Filtration segment recorded increased
sales of 23.2% for 1998 over 1997. This sales increase included a significant
sale in the first quarter of 1998 of gas turbine filtration equipment and
filters to an overseas buyer. Excluding this sale, the segment's sales level
increased approximately 18% over 1997 and included higher sales for both
Airguard and UAS compared to 1997 and ATI sales from the February 20, 1998
acquisition date. The Consumer Packaging segment reported a 1.1% decrease in
sales for the 1998 six-month period; however, the 1997 period included
approximately $3,500,000 in sales from the segment's Tube Division which was
sold in November 1997. Excluding the sales from the Tube Division in 1997, the
segment's 1998 sales increased 11.1% for the six-month period. The segment's
metal and plastics sales both increased in 1998 compared to 1997.
Operating profit for the 1998 six-month period was $22,305,000, which compares
to $16,241,000 in 1997. The 1997 operating profit was reduced by
merger-related costs of $2,972,000. Excluding the merger costs recorded in
1997, operating profit increased 16.1% to $22,305,000 in 1998 from $19,213,000
in 1997. Operating profit was 10.9% of net sales in 1998 compared to 10.5%,
excluding the merger-related costs, in 1997.
The Engine/Mobile Filtration segment recorded an operating profit increase of
14.9% in the 1998 six-month period as a result of higher sales volumes,
continued productivity improvements, and significantly improved operating
results for the segment's light-duty product line from the 1997 six-month
period. The Industrial/Environmental Filtration segment reported an increase of
$884,000 in operating profit in 1998 to $1,870,000 due to increased sales
volumes and productivity improvements from both of the segment's operating
companies. Although the Consumer Packaging segment benefited from higher sales
levels from both the metal and plastic product lines, operating profit
decreased 2.5% as a result of product mix changes, charges for several
customer account balances, and the 1997 profit from the Tube Division which did
not recur in 1998.
Net other expense of $959,000 in 1998 included reduced interest expense and
higher interest income than recorded in 1997 as a result of lower debt and
higher cash balances during the 1998 six-month period. The first quarter of
1997 also included a $1,706,000 gain from the sale of shares held by the
Company in G.U.D. Holdings Ltd. (GUD).
Page 9 of 13
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MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, Continued
Earnings before income taxes and minority interests for the first six months of
1998 totaled $21,346,000, up from $16,912,000 in the comparable period last
year. Excluding the merger-related costs and gain on sale of securities in
1997, earnings before income taxes and minority interests increased to
$21,346,000 from $18,178,000 in 1997 and resulted from increased operating
profit of $3,092,000 and reduced other expense of $76,000.
The provision for income taxes in 1998 was $7,958,000, an effective rate of
37.3%. Certain of the merger-related costs recorded in 1997 were not fully
deductible for tax purposes which created an unusually high effective tax rate
of 40.1% of pre-tax earnings for the six-month 1997 period.
Net earnings in the 1998 period year were $13,367,000, or $0.55 basic earnings
per share and $0.54 per share on a diluted basis. The 1997 net earnings for
the six-month period of $10,065,000, or $0.42 basic earnings per share and
$0.41 on a diluted basis, reflect the merger-related costs and the gain from
the sale of the GUD shares. Without these two unusual items, 1997 net earnings
would have been approximately $11,363,000, or $0.47 per share on a basic and
diluted basis.
Average shares outstanding were 24,336,846 and diluted average shares
outstanding were 24,642,138 at the end of six months of 1998.
LIQUIDITY AND CAPITAL RESOURCES
Cash provided by operating activities totaled $11,203,000 and included
increased net earnings offset by increased investment in assets, net of
liabilities, from the first six months of 1997. Cash flows used in investing
activities increased in the 1998 period primarily due to the cash used to
acquire Air Technologies, Inc. on February 20, 1998. The 1998 period also
included $2,500,000 received as payment on a note receivable, and the 1997
period included the proceeds of $3,322,000 received from the sale of the GUD
shares. Cash flows used by financing activities of $4,913,000 in 1998 included
payments on long-term debt of $1,127,000 and cash dividend payments of
$5,342,000. The debt payments of $12,845,000 were higher in 1997 due to the
required payment schedules and payments on certain high cost debt assumed in
the UAS merger. The additional borrowing of $1,000,000, which occurred in
first quarter 1997, was related to UAS' additional use of a line of credit
prior to the merger.
CLARCOR's current operations continue to generate adequate cash to fund
operating needs, pay dividends, and provide for the repayment of the Company's
long-term debt. Sufficient lines of credit remain available to fund current
operating needs. Capital expenditures of approximately $20,000,000 for fiscal
year 1998 will be greater than 1997 as a result of an expansion to the Kearney,
Nebraska facility.
The Company's financial position at the end of the second quarter was not
significantly different from fiscal year-end 1997. Cash and short-term
investments totaled $27,569,000 at the end of the quarter, a reduction of
$2,755,000 from year-end. On February 20, 1998, the Company
Page 10 of 13
12
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, Continued
completed the acquisition of Air Technologies, Inc. for cash. The current
ratio at the end of the second quarter was 3.0:1, the same level as at the end
of fiscal 1997. The current year ratio of long-term debt to total
capitalization was 17.2% compared to 18.0%, the level at year-end 1997.
At the end of the second quarter, CLARCOR had 24,438,377 shares of common stock
outstanding.
OUTLOOK
The Company's domestic sales and order rate remain strong, although a slowdown
in order volume was noticed near the end of the second quarter. In addition,
as reported at the end of the first quarter of 1998, the softening in export
sales to both Europe and Asia has continued throughout the second quarter.
Management continues to be watchful over these events and expects to reduce
operating costs, particularly in administrative areas, if these trends continue
or become significant to CLARCOR. The Company believes that 1998 will be
another record year of sales, operating profit and net earnings for CLARCOR.
FORWARD-LOOKING INFORMATION IS SUBJECT TO RISK AND UNCERTAINTY
Certain statements quoted in the body of this report, and statements in the
"Outlook" section of this report are forward-looking. These statements involve
risk and uncertainty. Actual future results and trends may differ materially
depending on a variety of factors, including the volume and timing of orders
received during the quarter, the mix of changes in distribution channels
through which the Company's products are sold, the timing and acceptance of new
products and product enhancements by the Company or its competitors, changes in
pricing, product life cycles, purchasing patterns of distributors and
customers, competitive conditions in the industry, business cycles affecting
the markets in which the Company's products are sold, extraordinary events,
such as litigation or acquisitions, including related charges, and economic
conditions generally or in various geographic areas. All of the foregoing
matters are difficult to forecast. The future results of the Company may
fluctuate as a result of these and the other risk factors detailed from time to
time in the Company's Securities and Exchange Commission reports.
Due to the foregoing items, it is possible that, in some future quarters, the
Company's operating results will be below the expectation of some stock market
analysts and investors. In such event, the price of the CLARCOR common stock
could be materially adversely affected.
Page 11 of 13
13
Part II - Other Information
Item 6a - Exhibit (11), Computations of Per Share Earnings are presented
in Note 2 to the financial statements.
Item 6b - A Form 8-K was filed during the second quarter to report a
three-for-two stock split declared by the Board of Directors on
March 24, 1998 to shareholders of record on April 10, 1998
effective April 24, 1998.
Page 12 of 13
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SIGNATURE
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.
CLARCOR INC.
(Registrant)
July 10, 1998 By /s/ Bruce A. Klein
- -------------------- ----------------------------------------
(Date) Bruce A. Klein, Vice President - Finance
and Chief Financial Officer
Page 13 of 13