UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
(Mark One)
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE |
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For the quarterly period ended January 31, 2004 |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF |
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For the transition period from to |
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Commission file number 1-4822 |
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EARL SCHEIB, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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95-1759002 |
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(State or other jurisdiction of |
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(I.R.S. Employer |
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15206 Ventura
Boulevard, Suite 200 |
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91403 |
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(Address of principal executive offices) |
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(Zip Code) |
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Registrant’s telephone number, including area code: (818) 981-9992 |
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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.
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Yes ý |
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No o |
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
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Yes o |
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No ý |
As of March 8, 2004, the registrant had 4,803,311 shares of its Capital Stock, $1.00 par value issued and 4,379,682 shares outstanding.
This report contains a total of 15 pages.
PART I-FINANCIAL INFORMATION
EARL SCHEIB, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share data)
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Unaudited |
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January 31, |
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April 30, |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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$ |
3,347 |
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$ |
3,447 |
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Certificates of deposit (restricted) |
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— |
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1,378 |
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Accounts receivable, less allowances of $113 at January 31, 2004 and $108 at April 30, 2003 |
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486 |
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541 |
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Inventories |
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2,235 |
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1,666 |
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Prepaid expenses, including advertising costs of $382 at January 31, 2004 and $444 at April 30, 2003 |
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1,367 |
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1,696 |
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Deferred income taxes |
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1,173 |
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1,173 |
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Other current assets |
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373 |
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21 |
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Total Current Assets |
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8,981 |
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9,922 |
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Property, plant and equipment, net |
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9,117 |
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10,281 |
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Deferred income taxes |
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768 |
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768 |
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Other, including cash surrender value of life insurance of $2,571 at January 31, 2004 and $2,433 at April 30, 2003 |
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3,010 |
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2,701 |
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Total Assets |
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$ |
21,876 |
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$ |
23,672 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current Liabilities: |
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Accounts payable |
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$ |
1,043 |
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$ |
596 |
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Accrued expenses: |
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Payroll and related taxes |
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945 |
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1,262 |
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Insurance |
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2,593 |
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2,349 |
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Interest |
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1,461 |
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1,337 |
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Advertising |
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197 |
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193 |
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Legal and professional |
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297 |
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328 |
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Other |
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1,149 |
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1,144 |
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Income taxes payable |
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1,398 |
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1,405 |
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Total Current Liabilities |
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9,083 |
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8,614 |
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Deferred management compensation |
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3,012 |
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3,020 |
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Long-term debt and obligations |
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1,683 |
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1,683 |
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Commitments and contingencies |
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— |
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— |
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Shareholders’ Equity: |
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Capital stock $1 par - 12,000,000 shares authorized; 4,803,000 issued and 4,380,000 outstanding |
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4,803 |
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4,803 |
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Additional paid-in capital |
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6,756 |
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6,756 |
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Retained earnings (Accumulated deficit) |
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(499 |
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1,758 |
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Treasury stock (423,000 shares) |
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(2,962 |
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(2,962 |
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Total Shareholders’ Equity |
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8,098 |
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10,355 |
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Total Liabilities and Shareholders’ Equity |
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$ |
21,876 |
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$ |
23,672 |
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The accompanying notes are an integral part of these condensed consolidated balance sheets.
2
EARL SCHEIB, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
(Unaudited)
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Three Months Ended |
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Nine Months Ended |
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2004 |
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2003 |
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2004 |
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2003 |
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Net sales |
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$ |
9,001 |
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$ |
9,290 |
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$ |
35,115 |
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$ |
35,115 |
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Cost of sales |
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8,341 |
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8,652 |
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28,320 |
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28,676 |
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Gross profit |
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660 |
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638 |
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6,795 |
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6,439 |
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Selling, general & administrative expense |
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2,371 |
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2,830 |
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8,514 |
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9,263 |
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Operating loss |
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(1,711 |
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(2,192 |
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(1,719 |
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(2,824 |
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Gain (loss) on sales and disposals of property and equipment |
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(22 |
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1,479 |
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Interest expense |
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(208 |
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(136 |
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(499 |
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(376 |
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