UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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(Mark One) |
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ý QUARTERLY REPORT
PURSUANT TO SECTION 13 OR |
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For the quarterly period ended June 28, 2003 |
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OR |
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o TRANSITION REPORT
PURSUANT TO SECTION 13 OR |
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For the transition period from to |
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Commission File number 1-3834 |
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CONTINENTAL MATERIALS CORPORATION
(Exact name of registrant as specified in its charter)
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Delaware |
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36-2274391 |
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(State or other jurisdiction of |
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(I.R.S. Employer Identification No.) |
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225 West Wacker Drive, Suite 1800, Chicago, Illinois 60606 |
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(Address of principal executive office) |
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(312) 541-7200 |
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(Registrant’s telephone number, including area code) |
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(Former name, former address and former |
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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 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
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Number of common shares outstanding at July 28, 2003 |
1,744,715 |
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
CONTINENTAL MATERIALS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
JUNE 28, 2003 and DECEMBER 28, 2002
(000’s omitted except share data)
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JUNE 28, |
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DECEMBER
28, |
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(Unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
— |
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$ |
3,536 |
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Receivables, net |
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23,595 |
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16,740 |
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Inventories: |
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Finished goods |
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6,582 |
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6,855 |
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Work in process |
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1,614 |
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1,523 |
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Raw materials and supplies |
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6,109 |
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6,214 |
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Prepaid expenses |
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3,184 |
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3,530 |
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Total current assets |
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41,084 |
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38,398 |
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Property, plant and equipment, net |
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32,622 |
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34,033 |
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Goodwill |
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7,374 |
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7,374 |
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Non-compete agreements |
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1,292 |
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1,403 |
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Other assets |
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1,283 |
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1,426 |
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$ |
83,655 |
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$ |
82,634 |
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LIABILITIES |
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Current liabilities: |
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Bank loan payable |
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$ |
2,900 |
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$ |
— |
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Current portion of long-term debt |
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3,310 |
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3,300 |
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Accounts payable and accrued expenses |
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14,887 |
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13,358 |
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Income taxes |
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— |
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308 |
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Total current liabilities |
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21,097 |
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16,966 |
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Long-term debt |
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8,500 |
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10,220 |
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Deferred income taxes |
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3,037 |
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3,037 |
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Other long-term liabilities |
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2,368 |
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2,422 |
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SHAREHOLDERS’ EQUITY |
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Common shares, $0.25 par value; authorized 3,000,000; issued 2,574,264 shares |
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643 |
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643 |
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Capital in excess of par value |
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1,982 |
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1,982 |
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Retained earnings |
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57,466 |
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57,851 |
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Accumulated other comprehensive losses net of tax of $217 and $214 (interest rate swap adjustments) |
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(404 |
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(404 |
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Treasury shares, 829,549 and 790,766, at cost |
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(11,034 |
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(10,083 |
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48,653 |
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49,989 |
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$ |
83,655 |
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$ |
82,634 |
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See accompanying notes
2
CONTINENTAL MATERIALS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS
FOR THE THREE MONTHS ENDED JUNE 28, 2003 AND JUNE 29, 2002
(Unaudited)
(000’s omitted except per-share amounts)
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JUNE 28, |
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JUNE 29, |
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Sales |
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$ |
34,620 |
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$ |
37,423 |
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Costs and expenses: |
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Cost of sales (exclusive of depreciation, depletion and amortization) |
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26,694 |
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28,578 |
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Depreciation, depletion and amortization |
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1,595 |
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1,545 |
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Selling and administrative |
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4,497 |
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4,614 |
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32,786 |
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34,737 |
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Operating income |
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1,834 |
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2,686 |
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Interest |
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(198 |
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(265 |
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Other income, net |
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22 |
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247 |
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Income before income taxes |
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1,658 |
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2,668 |
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Provision for income taxes |
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647 |
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953 |
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Net income |
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1,011 |
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1,715 |
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Retained earnings, beginning of period |
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56,455 |
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53,969 |
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Retained earnings, end of period |
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$ |
57,466 |
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$ |
55,684 |
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Basic earnings per share |
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$ |
.57 |
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$ |
.95 |
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Average shares outstanding |
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1,765 |
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1,799 |
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Diluted earnings per share |
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$ |
.56 |
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$ |
.94 |
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Average shares outstanding |
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1,799 |
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1,835 |
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See accompanying notes
3
CONTINENTAL MATERIALS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS
FOR THE SIX MONTHS ENDED JUNE 28, 2003 AND JUNE 29, 2002
(Unaudited)
(000’s omitted except per-share amounts)
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JUNE 28, |
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JUNE 29, |
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