UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
(Mark One)
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x |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2004
OR
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¨ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number 1-4801
BARNES GROUP INC.
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Delaware |
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06-0247840 |
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(State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer Identification No.) |
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123 Main Street, Bristol, Connecticut |
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06011-0489 |
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(Address of Principal Executive Offices) |
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(Zip Code) |
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(860) 583-7070
Registrant's telephone number, including area code
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 by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act). Yes
The registrant had outstanding 23,159,125 shares of common stock as of November 3, 2004.
1
Barnes Group Inc.
Index to Form 10-Q
For the Quarterly Period Ended September 30, 2004
2
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
BARNES GROUP INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
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Three months ended |
Nine months ended |
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September 30, |
September 30, |
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2004 |
2003 |
2004 |
2003 |
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Net sales |
$ |
243,928 |
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$ |
222,160 |
$ |
743,107 |
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$ |
670,481 |
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Cost of sales |
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159,972 |
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143,651 |
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486,330 |
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432,193 |
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Selling and administrative expenses |
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69,187 |
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64,470 |
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208,504 |
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195,054 |
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229,159 |
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208,121 |
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694,834 |
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627,247 |
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Operating income |
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14,769 |
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14,039 |
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48,273 |
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43,234 |
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Other income |
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313 |
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613 |
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1,719 |
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2,293 |
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Interest expense |
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3,757 |
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3,961 |
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11,263 |
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12,206 |
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Other expenses |
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363 |
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13 |
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621 |
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990 |
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Income before income taxes |
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10,962 |
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10,678 |
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38,108 |
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32,331 |
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Income taxes |
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1,736 |
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1,725 |
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7,980 |
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6,272 |
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Net income |
$ |
9,226 |
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$ |
8,953 |
$ |
30,128 |
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$ |
26,059 |
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Per common share: |
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Net income: |
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Basic |
$ |
0.40 |
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$ |
0.40 |
$ |
1.31 |
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$ |
1.24 |
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Diluted |
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0.39 |
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0.38 |
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1.26 |
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1.21 |
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Dividends |
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0.20 |
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0.20 |
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0.60 |
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0.60 |
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Average common shares outstanding: |
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Basic |
23,139,339 |
22,561,901 |
23,080,477 |
21,038,719 |
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Diluted |
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23,779,636 |
23,257,839 |
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23,842,586 |
21,531,951 |
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See accompanying notes.
3
BARNES GROUP INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
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September 30, |
December 31, |
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2003 |
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Assets |
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Current assets |
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Cash and cash equivalents |
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$ |
33,696 |
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$ |
49,788 |
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Accounts receivable, less allowances (2004 - $2,556; 2003 - $3,188) |
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146,880 |
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119,130 |
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Inventories |
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122,555 |
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109,780 |
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Deferred income taxes |
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20,517 |
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22,319 |
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Prepaid expenses |
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14,282 |
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11,083 |
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Total current assets |
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337,930 |
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312,100 |
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Deferred income taxes |
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22,177 |
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22,790 |
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Property, plant and equipment |
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474,343 |
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452,542 |
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Less accumulated depreciation |
(314,629 |
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(298,454 |
) |
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159,714 |
154,088 |
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Goodwill |
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225,497 |
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220,118 |
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Other intangible assets, net |
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103,830 |
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61,923 |
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Other assets |
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59,310 |
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59,801 |
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Total assets |
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$ |
908,458 |
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$ |
830,820 |
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Liabilities and Stockholders' Equity |
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Current liabilities |
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Notes payable |
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$ |
3,500 |
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$ |
10,000 |
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Accounts payable |
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114,383 |
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97,155 |
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Accrued liabilities |
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75,185 |
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78,520 |
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Long-term debt - current |
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7,626 |
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6,804 |
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Total current liabilities |
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200,694 |
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192,479 |
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Long-term debt |
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270,361 |
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224,213 |
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Accrued retirement benefits |
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78,657 |
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77,455 |
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Other liabilities |
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15,212 |
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14,934 |
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Commitments and Contingencies (Note 11) |
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Stockholders' equity |
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Common stock - par value $0.01 per share |
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Authorized: 60,000,000 shares |
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Issued: 24,419,694 shares at par value |
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244 |
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244 |
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Additional paid-in capital |
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103,122 |
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100,592 |
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Treasury stock, at cost (2004 - 1,268,516 shares; 2003 - 1,552,006 shares) |
(33,722 |
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(34,652 |
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Retained earnings |
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285,753 |
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270,030 |
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Accumulated other non-owner changes to equity |
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(11,863 |
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(14,475 |
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Total stockholders' equity |
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343,534 |
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321,739 |
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Total liabilities and stockholders' equity |
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$ |
908,458 |
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$ |
830,820 |
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See accompanying notes.
4
BARNES GROUP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
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Nine months ended |
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September 30, |
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2004 |
2003 |
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Operating activities: |
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Net income |
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$ |
30,128 |
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$ |
26,059 |
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Adjustments to reconcile net income to net cash from operating activities: |
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Depreciation and amortization |
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25,158 |
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25,710 |
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Gain on disposition of property, plant and equipment |
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(229 |
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(925 |
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Changes in assets and liabilities, net of the effects of acquisitions: |
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Accounts receivable |
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(22,591 |
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(13,677 |
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Inventories |
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(8,923 |
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(379 |
) |
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Prepaid expenses |
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(2,823 |
) |
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(1,995 |
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Accounts payable |
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(2,604 |
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6,522 |
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Accrued liabilities |
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1,828 |
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1,656 |
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Deferred income taxes |
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(975 |
) |
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(860 |
) |
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Long-term pension assets |
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(1,510 |
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(1,668 |
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Other |
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5,080 |
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5,294 |
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Net cash provided by operating activities |
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22,539 |
45,737 |
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Investing activities: |
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Proceeds from disposition of property, plant and equipment |
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1,742 |
3,024 |
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Capital expenditures |
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(21,383 |
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(11,356 |
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Business acquisitions, net of cash acquired |
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(17,540 |
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(61,127 |
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Revenue sharing program payments |
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(27,500 |
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--- |
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Other |
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(1,413 |
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(903 |
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Net cash used by investing activities |
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(66,094 |
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(70,362 |
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Financing activities: |
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Net change in other borrowings |
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(5,872 |
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8,124 |
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Payments on long-term debt |
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(9,411 |
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(42,882 |
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Proceeds from the issuance of long-term debt |
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58,000 |
56,000 |
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Proceeds from the issuance of common stock |
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3,365 |
49,369 |
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Common stock repurchases |
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(3,213 |
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(206 |
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Dividends paid |
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(13,869 |
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(13,014 |
) |
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Other |
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(1,498 |
) |
(1,917 |
) |
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