UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
FORM 10-Q
ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal quarter ended June 30, 2003
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o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934
Commission file number: 1-7537
EARLE M. JORGENSEN COMPANY
(Exact name of registrant as specified in its charter)
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Delaware |
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95-0886610 |
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(State or other jurisdiction of |
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(I.R.S. Employer |
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3050 East Birch Street, Brea, California |
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92821 |
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(Address of principal executive offices) |
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(Zip Code) |
Registrant’s telephone number: (714) 579-8823
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 registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý
Outstanding common stock, par value $.01 per share, at July 31, 2003 - 128 shares
EARLE M. JORGENSEN COMPANY
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Consolidated Condensed Balance Sheets at June 30, 2003 and March 31, 2003 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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1
PART I - FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
EARLE M. JORGENSEN COMPANY
CONSOLIDATED CONDENSED BALANCE SHEETS
(Dollars in thousands, except per share data)
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June 30, 2003 |
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March 31, 2003 |
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(Unaudited) |
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ASSETS |
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Current assets: |
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Cash |
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$ |
14,009 |
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$ |
20,030 |
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Accounts receivable, less allowance for doubtful accounts of $690 and $390 at June 30, 2003 and March 31, 2003, respectively |
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104,068 |
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97,292 |
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Inventories |
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227,745 |
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213,590 |
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Other current assets |
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6,916 |
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6,402 |
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Total current assets |
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352,738 |
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337,314 |
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Property, plant and equipment, net of accumulated depreciation of $84,586 and $81,859 at June 30, 2003 and March 31, 2003, respectively |
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112,066 |
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113,037 |
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Net cash surrender value of life insurance policies |
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36,815 |
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31,007 |
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Debt issue costs, net of accumulated amortization |
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7,902 |
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8,232 |
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Other assets |
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1,169 |
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1,151 |
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Total assets |
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$ |
510,690 |
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$ |
490,741 |
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LIABILITIES AND STOCKHOLDER’S EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
121,916 |
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$ |
119,815 |
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Accrued employee compensation and related taxes |
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7,834 |
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12,185 |
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Accrued employee benefits |
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11,747 |
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14,150 |
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Accrued interest |
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14,879 |
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16,186 |
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Other accrued liabilities |
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6,276 |
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2,993 |
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Deferred income taxes |
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19,450 |
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19,450 |
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Current portion of long-term debt |
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3,850 |
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2,330 |
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Total current liabilities |
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185,952 |
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187,109 |
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Long term debt |
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344,799 |
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328,207 |
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Deferred income taxes |
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15,936 |
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15,936 |
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Other long-term liabilities |
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7,677 |
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7,505 |
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Stockholder’s equity: |
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Preferred stock, $.01 par value; 200 shares authorized and unissued |
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— |
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— |
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Common stock, $.01 par value; 2,800 shares authorized;128 shares issued and outstanding |
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— |
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— |
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Capital in excess of par value |
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35,284 |
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35,284 |
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Accumulated other comprehensive loss |
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(2,336 |
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(3,884 |
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Accumulated deficit |
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(76,622 |
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(79,416 |
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Total stockholder’s deficit |
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(43,674 |
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(48,016 |
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Total liabilities and stockholder’s equity |
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$ |
510,690 |
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$ |
490,741 |
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See accompanying notes to consolidated condensed financial statements.
2
EARLE M. JORGENSEN COMPANY
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Dollars in thousands)
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Three Months Ended |
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June 30, 2003 |
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June 27, 2002 |
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(unaudited) |
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Revenues |
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$ |
238,299 |
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$ |
225,133 |
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Cost of sales |
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171,437 |
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161,867 |
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Gross profit |
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66,862 |
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63,266 |
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Expenses: |
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Warehouse and delivery |
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32,524 |
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30,538 |
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Selling |
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8,418 |
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7,941 |
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General and administrative |
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9,679 |
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10,128 |
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Loss on early retirement of debt |
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12,278 |
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Total expenses |
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50,621 |
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60,885 |
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Income from operations |
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16,241 |
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2,381 |
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Interest expense, net |
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12,628 |
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10,368 |
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Income (loss) before income taxes |
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3,613 |
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(7,987 |
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Income tax expense |
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819 |
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348 |
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Net income (loss) |
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2,794 |
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(8,335 |
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Other comprehensive income |
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1,548 |
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3,624 |
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