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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of
THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended September 28, 1996 Commission File No. 0-11917
THE DAVEY TREE EXPERT COMPANY
(Exact name of Registrant as specified in its charter)
OHIO 34-0176110
(State of Incorporation) (IRS Employer Identification No.)
1500 North Mantua Street
P. O. Box 5193
Kent, OH 44240-5193
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (330) 673-9511
Number of Common Shares Outstanding as of November 11, 1996: 4,499,306
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 and (2) has been subject to such filing requirements for
the past ninety (90) days.
YES X NO
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THE DAVEY TREE EXPERT COMPANY
INDEX
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Page No.
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PART I: FINANCIAL INFORMATION
Item 1: Financial Statements
Consolidated Balance Sheets - Periods Ended September 28,
1996, September 30, 1995 and December 31, 1995 3
Consolidated Statements of Net Earnings - Three Months
Ended September 28, 1996 and September 30, 1995 4
Consolidated Statements of Net Earnings - Nine Months
Ended September 28, 1996 and September 30, 1995 5
Consolidated Statements of Cash Flows - Nine Months
Ended September 28, 1996 and September 30, 1995 6
Notes to Consolidated Financial Statements 7
Item 2: Management's Discussion and Analysis of
Financial Condition and Results of Operations 10
PART II: OTHER INFORMATION
Item 4: Submission of Matters to a Vote of Security Holders 13
Item 6: Exhibits and Reports on Form 8-K 13
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THE DAVEY TREE EXPERT COMPANY
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
SEPT. 28, SEPT. 30, DEC. 31,
1996 1995 1995
------------ ------------ ---------
ASSETS (UNAUDITED)
- ------ ----------------------------
CURRENT ASSETS
Cash and Cash Equivalents $ 278 $ 664 $ 1,470
Accounts Receivable 46,864 38,100 34,622
Operating Supplies 2,526 2,106 2,136
Prepaid Expenses & Other Assets 2,214 2,411 2,082
Deferred Income Taxes 2,635 1,738 2,697
------------ ------------ ------------
Total Current Assets 54,517 45,019 43,007
PROPERTY AND EQUIPMENT:
Land and Land Improvements 6,208 6,271 6,446
Buildings and Leasehold Improvements 17,207 16,706 15,956
Equipment 145,976 136,930 139,711
------------ ------------ ------------
169,391 159,907 162,113
Less Accumulated Depreciation 112,455 105,632 107,977
------------ ------------ ------------
Net Property and Equipment 56,936 54,275 54,136
OTHER ASSETS AND INTANGIBLES 6,899 6,974 7,309
------------ ------------ ------------
TOTAL ASSETS $ 118,352 $ 106,268 $ 104,452
============ ============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
CURRENT LIABILITIES
Accounts Payable $ 11,273 $ 9,953 $ 10,227
Accrued Liabilities 17,294 15,541 13,935
Income Taxes Payable 1,052 1,708 3,171
Notes Payable, Bank 1,160 74 400
Current Maturities of Long-Term Debt 10,695 4,749 2,781
------------ ------------ ------------
Total Current Liabilities 41,474 32,025 30,514
LONG-TERM DEBT 14,982 19,599 17,049
DEFERRED INCOME TAXES 3,122 3,456 3,182
INSURANCE LIABILITIES 6,473 5,942 6,380
OTHER LIABILITIES 739 1,137 797
------------ ------------ ------------
TOTAL LIABILITIES 66,790 62,159 57,922
============ ============ ============
SHAREHOLDERS' EQUITY
Preferred Shares - No Par Value - - - - - -
Authorized 4,000,000 Shares; None Issued
Common Shares - $1.00 Par Value; Authorized
12,000,000 Shares; Issued 8,728,440 Shares at
September 28, 1996, September 30, 1995
and December 31, 1995 8,728 8,728 8,728
Additional Paid-in Capital 3,643 3,343 3,472
Retained Earnings 74,086 65,481 67,922
------------ ------------ ------------
86,457 77,552 80,122
LESS:
Treasury Shares at cost: 4,208,326 Shares at
September 28, 1996; 4,111,942 Shares at September 30, 1995;
and 4,104,976 Shares at December 31, 1995 (34,855) (33,014) (33,198)
Subscriptions Receivable from Employees (16) (308) (297)
Future Contributions to ESOT (24) (121) (97)
------------ ------------ ------------
TOTAL SHAREHOLDERS' EQUITY 51,562 44,109 46,530
------------ ------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 118,352 $ 106,268 $ 104,452
============ ============ ============
See Notes to Consolidated Financial Statements
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THE DAVEY TREE EXPERT COMPANY
CONSOLIDATED STATEMENTS OF NET EARNINGS
THREE MONTHS ENDED SEPTEMBER 28, 1996 AND SEPTEMBER 30, 1995
(DOLLARS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
SEPTEMBER 28, 1996 SEPTEMBER 30, 1995
------------------------------- -------------------------------
REVENUES $ 70,337 100.0% $ 61,972 100.0%
------------- ----------- -------------- -----------
COSTS AND EXPENSES
Operating 47,604 67.7 42,391 68.4
Selling 9,290 13.2 8,188 13.2
General and Administrative 4,148 5.9 3,477 5.6
Depreciation and Amortization 3,736 5.3 3,428 5.6
------------- ----------- -------------- -----------
TOTAL COSTS AND EXPENSES 64,778 92.1 57,484 92.8
------------- ----------- -------------- -----------
EARNINGS FROM OPERATIONS 5,559 7.9 4,488 7.2
INTEREST EXPENSE (558) (0.8) (634) (1.0)
OTHER EXPENSE - NET (18) (24)
-------------- ----------- -------------- -----------
EARNINGS BEFORE INCOME TAXES 4,983 7.1 3,830 6.2
INCOME TAXES 1,957 2.8 1,570 2.5
------------- ----------- -------------- -----------
NET EARNINGS $ 3,026 4.3% $ 2,260 3.7%
============= =========== ============== ===========
NET EARNINGS PER COMMON SHARE $ 0.53 $ 0.46
============= ==============
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING, INCLUDING
COMMON STOCK EQUIVALENTS 5,686,992 4,869,440
============= ==============
See Notes to Consolidated Financial Statements
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THE DAVEY TREE EXPERT COMPANY
CONSOLIDATED STATEMENTS OF NET EARNINGS
NINE MONTHS ENDED SEPTEMBER 28, 1996 AND SEPTEMBER 30, 1995
(DOLLARS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
SEPTEMBER 28, 1996 SEPTEMBER 30, 1995
------------------------------- -------------------------------
REVENUES $ 204,629 100.0% $ 169,631 100.0%
------------- ----------- -------------- -----------
COSTS AND EXPENSES
Operating 141,932 69.3 119,353 70.4
Selling 26,113 12.8 22,113 13.0
General and Administrative 12,654 6.2 10,829 6.4
Depreciation and Amortization 10,767 5.3 9,742 5.8
------------- ----------- -------------- -----------
TOTAL COSTS AND EXPENSES 191,466 93.6 162,037 95.6
------------- ----------- -------------- -----------
EARNINGS FROM OPERATIONS 13,163 6.4 7,594 4.4
INTEREST EXPENSE (1,638) (0.8) (1,866) (1.1)
OTHER INCOME/(EXPENSE) - NET 134 0.1 (65)
------------- ----------- -------------- -----------
EARNINGS BEFORE INCOME TAXES 11,659 5.7 5,663 3.3
INCOME TAXES 4,582 2.2 2,322 1.4
------------- ----------- -------------- -----------
EARNINGS FROM CONTINUING OPERATIONS 7,077 3.5 3,341` 1.9
DISCONTINUED OPERATIONS - NET 236 0.1
------------- ----------- -------------- -----------
NET EARNINGS $ 7,077 3.5% $ 3,577 2.0%
============= =========== ============== ===========
NET EARNINGS PER COMMON SHARE
FROM CONTINUING OPERATIONS $ 1.39 $ 0.68
============= ==============
NET EARNINGS PER COMMON SHARE $ 1.39 $ 0.73
============= ==============
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING, INCLUDING
COMMON STOCK EQUIVALENTS 5,074,630 4,894,092
============= ==============
See Notes to Consolidated Financial Statements
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THE DAVEY TREE EXPERT COMPANY
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR NINE MONTHS ENDED SEPTEMBER 28, 1996 AND SEPTEMBER 30, 1995
(DOLLARS IN THOUSANDS)
(UNAUDITED)
SEPTEMBER 28, SEPTEMBER 30,
1996 1995
--------------- -----------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net Earnings $ 7,077 $ 3,577
Adjustments to Reconcile Net Earnings to
Net Cash Provided by Operating Activities:
Depreciation 10,473 9,418
Amortization 294 324
Deferred Income Taxes 2 359
Other (153) (168)
---------------- ----------------
17,693 13,510
Change in Operating Assets and Liabilities:
Accounts Receivable (12,242) (10,087)
Other Assets (172) 1,751
Accounts Payable and Accrued Liabilities 4,405 5,442
Insurance Liabilities 93 892
Other Liabilities (2,177) 1,022
--------------- ---------------
Net Cash Provided by Operating Activities 7,600 12,530
--------------- ---------------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from Sales of Property and Equipment 900 701
Acquisitions (820) (395)
Proceeds from Sale of Business 1,300
Capital Expenditures:
Land and Buildings (624) (501)
Equipment (12,720) (9,278)
--------------- ---------------
Net Cash Used In Investing Activities (13,264) (8,173)
---------------- ----------------
CASH FLOWS FROM FINANCING ACTIVITIES
ESOT Payment of Debt Guaranteed by the Company 73 72
Net Borrowings (Payments) Under Notes Payable, Bank 760 (25)
Principal Payments of Long-Term Debt (2,135) (3,261)
Proceeds from Issuance of Long-Term Debt 7,982 2,641
Sales of Treasury Shares 603 847
Receipts from Stock Subscriptions 281 298
Dividends Paid (1,003) (969)
Repurchase of Common Shares (2,089) (4,269)
--------------- ---------------
Net Cash Provided By/(Used In) Financing Activities 4,472 (4,666)
--------------- ----------------
NET CHANGE IN CASH AND EQUIVALENTS (1,192) (309)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 1,470 973
--------------- ---------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 278 $ 664
=============== ===============
See Notes to Consolidated Financial Statements
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THE DAVEY TREE EXPERT COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
NINE MONTHS ENDED SEPTEMBER 28, 1996
UNAUDITED
---------
NOTE 1 - BASIS OF PRESENTATION
- ------------------------------
The accompanying unaudited Consolidated Financial Statements as of
September 28, 1996 and September 30, 1995 and for the periods then ended have
been prepared in accordance with the instructions to Form 10-Q, but do not
include all the information and footnotes required by generally accepted
accounting principles for complete financial statements. It is management's
opinion that all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included.
Reclassifications have been made to the prior-year financial statements to
conform to the current year presentation.
The net earnings per common share from continuing operations and the net
earnings per common share were calculated by using the weighted average number
of common shares outstanding, including common stock equivalents, during the
period.
NOTE 2 - RESULTS OF OPERATIONS
- ------------------------------
Due to the seasonal nature of some of the Company's services, the
results of operations for the periods ended September 28, 1996 and September 30,
1995 are not necessarily indicative of the results to be expected for the full
year.
NOTE 3 - DIVIDENDS
- ------------------
On September 10, 1996, the Registrant paid a $.075 per share dividend
to all shareholders of record at September 1, 1996. This compares to a $.07 per
share dividend paid in the third quarter of 1995. For the nine months ended
September 28, 1996, the Registrant paid cumulative dividends of $.22 per share
to all shareholders of record. This compared to a $.205 cumulative per share
dividend paid the first nine months of 1995.
NOTE 4 - STOCK SPLIT
- --------------------
On September 27, 1996, the Registrant's board of directors declared a 2
for 1 stock split in the form of a 100% stock dividend. The additional shares as
a result of the dividend will be distributed on or after October 10, 1996 to
shareholders of record as of October 1, 1996. Common shares issued, treasury
shares, per common share amounts and price per common share have been restated
for all periods presented to give retroactive effect to the stock split.
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NOTE 5 - ACCRUED LIABILITIES
- ----------------------------
Accrued liabilities consisted of:
SEPT. 28, SEPT. 30, DEC. 31,
1996 1995 1995
------------- ------------- ---------
(DOLLARS IN THOUSANDS)
Compensation $ 5,931 $ 5,543 $ 3,521
Vacation 2,094 1,739 1,658
Insurance Liabilities 6,551 5,848 7,082
Taxes, other than taxes on income 1,136 974 915
Other 1,582 1,437 759
------------ ------------ ------------
$ 17,294 $ 15,541 $ 13,935
============ ============ ============
NOTE 6 - LONG-TERM DEBT
- -----------------------
Long-term debt consisted of:
SEPT. 28, SEPT. 30, DEC. 31,
1996 1995 1995
------------- ------------- ---------
(DOLLARS IN THOUSANDS)
Revolving Credit Agreement:
Prime rate borrowings $ 1,900 $ 3,300 $ 2,900
London Interbank Offered Rate
(LIBOR) borrowings 15,000 9,500 6,000
Term note agreement 7,800 10,200 9,600
Notes payable ------------- ------------- -------------
24,700 23,000 18,500
Long-term debt of ESOT 48 121 97
Subordinated notes - stock redemption 515 673 673
Term loans and others 414 554 560
------------- ------------- -------------
25,677 24,348 19,830
Less current maturities 10,695 4,749 2,781
------------- ------------- -------------
$ 14,982 $ 19,599 $ 17,049
============= ============= =============
NOTE 7 - ACQUISITIONS
- ---------------------
In the first quarter of 1996, the Registrant acquired the assets of two
organizations which provide horticultural services for a total purchase price of
$820,000, and accounted for each transaction as a purchase. Their results of
operations, which were not material, have been included in the accompanying
financial statements from their respective acquisition dates. Goodwill and other
intangibles recognized in connection with these purchases are being amortized
over three to fifteen years.
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NOTE 8 - DISCONTINUED OPERATION
- -------------------------------
In March, 1995 the Company sold substantially all of the operating
assets, excluding real estate, of its interior plant care business. Amounts
related to the discontinued operation and recognized in the financial statements
are as follows:
SEPT. 28 SEPT. 30
1996 1995
----------- --------
(DOLLARS IN THOUSANDS)
Revenue $ 555
-----------
Loss from discontinued operation, net of applicable
income tax benefits of $116,000 in 1995. (168)
Gain on sale of assets, less applicable income taxes
of $280,000 404
-----------
Discontinued operation, net $ 236
-----------
Remaining assets and liabilities:
Real estate and receivable, net $ 424 $ 461
----------- -----------
Accounts payable, accrued liabilities and long-term debt $ 73 $ 389
----------- -----------
NOTE 9 - SUPPLEMENTAL CASH FLOW INFORMATION
- -------------------------------------------
Cash payments for income taxes for the periods amounted to $6,699,000
and $1,725,000 in 1996 and 1995, respectively. Cash payments for interest for
the periods amounted to $1,713,000 and $1,775,000 in 1996 and 1995,
respectively.
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THE DAVEY TREE EXPERT COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
-----------------------------------------------------------
AND RESULTS OF OPERATIONS
-------------------------
PERIODS ENDED SEPTEMBER 28, 1996 AND SEPTEMBER 30, 1995
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
Despite substantially higher net earnings for the first nine months of 1996,
operating activities provided only $7,600,000 in cash, $4,930,000 less than the
$12,530,000 generated in 1995. The reduction was primarily attributable to
increases in accounts receivable and other assets, a smaller increase in
accounts payable and accrued liabilities, and a decrease in other liabilities.
Net earnings of $7,077,000 for the first nine months of 1996 were $3,500,000
higher than the $3,577,000 generated last year, due to improved operating
earnings in most of the Registrant's service lines. The improved earnings were
partially due to additional Utility and Consulting services work with a major
western U.S. customer; this work, obtained during the fourth quarter of 1995,
was substantially complete by the end of the second quarter, although some of it
was extended and will continue through the end of 1996. Also, the Registrant's
Residential and Commercial service revenues continue to be favorably influenced
by heightened sales efforts, as well as a generally improved economy. Third
quarter revenues in particular benefited from additional work obtained as a
result of the storm damage caused by Hurricane Fran in September.
Notwithstanding the substantial completion of the additional work noted above,
the Registrant expects that revenues and earnings will be higher than in 1995.
Accounts receivable increased $12,242,000 or $2,155,000 more than the
$10,087,000 increase in 1995. The net increase was primarily attributable to
work in process related to certain contracts with one of the Registrant's
Utility customers, and to a lesser extent higher Residential and Commercial
revenues. Similarly, accounts receivable days outstanding of 60.0 days have
increased 5.3 days compared to last year at this time, and are 6.2 days higher
than December 31, 1995. With respect to the work in process, the Registrant
anticipates this contract will continue to adversely affect days outstanding as
it calls for billings in six month intervals. Accordingly, while the Registrant
continues to work to reduce average days outstanding, it is not concerned as to
the overall collectability of accounts.
Other assets increased $172,000, a change of $1,923,000 when compared to the
$1,751,000 provided in 1995. The change was primarily due to an increase in
operating supplies to support the Registrant's expanded Utility and Residential
services, along with a reduction in deposits required by the Registrant's
casualty insurance carrier in 1995.
Accounts payable and accrued liabilities provided $4,405,000 in cash, $1,037,000
less than that provided in 1995. This decrease was primarily the result of a
reduction in the current portion of self insurance liabilities due to generally
improved claims experience as well as further stabilization in the level of
estimated ultimate costs associated with a more mature program.
Other liabilities used $2,177,000 in cash during the first nine months of 1996,
an increase of $3,199,000 when compared to the $1,022,000 provided last year.
The change was attributable to an acceleration of estimated income tax payments
in the current year, the result of substantially higher earnings.
Investing activities used $13,264,000 in cash, $5,091,000 more than the
$8,173,000 used in 1995. The increase was a function of higher capital
expenditures in the current year, and proceeds received in 1995 pertaining to
the sale of certain Interior plant care assets (See Note #8 on page 9 of the
Financial Statements on this Form 10-Q). The increase in capital expenditures is
consistent with the Registrant's 1996 budget of $16,400,000, which is necessary
to expand services, maintain equipment on existing operations, and provide for
the ongoing expansion of its branch office facilities.
In the current year, financing activities provided $4,472,000, an increase of
$9,138,000 when compared to the $4,666,000 used in the prior year. The increase
was mainly attributable to borrowings under the
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Registrant's revolving credit agreement , necessitated primarily by the increase
in accounts receivable and capital expenditures. Also, the Registrant's current
year repurchase of its common shares declined substantially when compared to
last year, due largely to a significant repurchase in 1995 of shares held by a
former vice president.
At September 28, 1996, the Registrant's principal source of liquidity consisted
of $278,000 in cash and cash equivalents; short-term lines of credit and amounts
available to be borrowed from banks via notes payable totaling $3,904,000 of
which $1,160,000 had been drawn; and a credit agreement in the amount of
$35,000,000, of which $16,900,000 had been drawn and $6,126,000 was considered
drawn to cover outstanding standby letters of credit. Including the outstanding
balance on the term note agreement of $7,800,000, the Registrant's credit
facilities totaled $46,704,000. The Registrant believes its available credit
will exceed credit requirements, and that its liquidity is adequate.
RESULTS OF OPERATIONS
- ---------------------
For the first nine months of 1996, revenues increased more than 20% to
$204,629,000 when compared to the same period in 1995. For the quarter, the
Registrant recognized revenues of $70,337,000, an increase of $8,365,000 or
13.5% when compared to last year. As mentioned previously, higher revenues in
most of the Registrant's service lines and favorable economic conditions
contributed to the increases; also, third quarter revenues were favorably
influenced by the additional work obtained as a result of storm damage caused by
Hurricane Fran in North Carolina.
Operating costs for the year increased $22,579,000 to $141,932,000, but as a
percentage of revenues they decreased 1.1% to 69.3%. In the quarter, these costs
were $47,604,000, $5,213,000 higher than in 1995, but as a percentage of
revenues they declined .7% to 67.7%. The percentage improvement for the year and
quarter continues to reflect the positive influence of higher Residential,
Commercial and Consulting service revenues. The current year increase in
Residential and Commercial service revenues relative to other services,
particularly utility services, positively influence operating costs in that they
are generally higher priced services with inherently higher gross margins and
attendant lower operating costs. Consulting services are far less capital
intensive and any increase in these revenues relative to the Registrant's other
services will benefit its cost structure.
Year-to-date, selling costs of $26,113,000 were $4,000,000 higher than in 1995,
but as a percentage of revenues were .2% lower at 12.8%. For the quarter,
selling costs increased $1,102,000 to $9,290,000, and as a percentage of
revenues remained even with last year at 13.2%. Both the year-to-date and
quarterly increases were affected by higher sales commissions, branch office
expenses and other sales costs, primarily attributable to the increases in
Residential, Commercial and Consulting revenues.
Although general and administrative (G&A) expense was higher than last year in
both the quarter and year to date, as a percentage of revenues these costs
declined on a year to date basis by .3% to 6.1%, and remained at 5.6% in the
quarter. The dollar increase was primarily due to administrative costs
associated with the Registrant's expansion of its Commercial and Consulting
services, as well as professional services related to the Registrant's upgrade
of its information service technologies.
Depreciation and amortization expense for the first nine months of $10,767,000
was $1,025,000 higher than the same period last year. However, as a percentage
of revenues, both the year to date and quarter declined by .5% and .3%,
respectively. The lower percentages resulted primarily from relatively lower
capital expenditures in the prior two years, coupled with higher, less capital
intensive consulting service revenues in the current year. Given the current
year increase in capital expenditures, depreciation is expected to approximate
$14,000,000 in 1996.
Interest expense of $1,638,000 was $228,000 lower than last year, and as a
percentage of revenues declined 0.3% to .8%. The decrease is primarily
attributable to more favorable rates obtained under the Registrant's credit
facility which had been entered into in September 1995.
As a result of the above factors, earnings from continuing operations before
income taxes increased $5,996,000 to $11,659,000 or 2.4% to 5.7% as a percentage
of revenues. For the quarter, earnings of $4,983,000 improved by $1,153,000 or
.9% as a percentage of revenues. Effective income tax rates of
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39.3% and 41.0% were used to compute the tax provisions for 1996 and 1995,
respectively.
The Registrant's year-to-date net earnings of $7,077,000 increased $3,500,000 or
1.5% as a percentage of revenues when compared to the first nine months of 1995,
after reflecting a net $236,000 contributed by the Registrant's discontinued
operation in the prior year (See Note # 8 on page 9 of the Financial Statements
on this Form 10-Q).
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THE DAVEY TREE EXPERT COMPANY
PART II: OTHER INFORMATION
--------------------------
ITEM 4: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
On May 21, 1996, the Registrant held its annual meeting of
shareholders. The shareholders voted to:
a. Elect the following persons to serve as directors for a term
to expire on the date of the annual meeting in 1999:
John W. Joy
R. Douglas Cowan
ITEM 6: EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27 Financial Data Schedule
(b) Reports on Form 8-K
No reports on Form 8-K have been filed during the quarter for
which this report is filed.
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.
THE DAVEY TREE EXPERT COMPANY
BY: /s/David E. Adante
--------------------------------------
David E. Adante
Executive Vice President, CFO and
Secretary-Treasurer
BY: /s/Bradley L. Comport
--------------------------------------
Bradley L. Comport
Corporate Controller
November 12, 1996
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