UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Period Ended February 29, 2004
Commission File Number: 1-9852
CHASE CORPORATION
(Exact name of registrant as specified in its charter)
|
Massachusetts |
|
11-1797126 |
|
(State
or other jurisdiction of incorporation |
|
(I.R.S. Employer Identification No.) |
|
|
|
|
|
26 Summer Street, Bridgewater, Massachusetts 02324 |
||
|
(Address of Principal Executive Offices, Including Zip Code) |
||
|
|
||
|
(508) 279-1789 |
||
|
(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, and (2) has been subject to such filing requirements for the past 90 days. YES ý NO o
Indicate by checkmark whether the registrant is an accelerated filer (as defined in Rule 12-b-2 of the Exchange Act). YES o NO ý
Common Shares Outstanding as of March 31, 2004 was 3,668,480.
CHASE CORPORATION
INDEX TO FORM 10-Q
For the Quarter Ended February 29, 2004
2
Part 1 – FINANCIAL INFORMATION
Item 1 – Unaudited Financial Statements
CHASE CORPORATION
(UNAUDITED)
|
|
|
February 29, 2004 |
|
August 31, 2003 |
|
||
|
ASSETS |
|
|
|
|
|
||
|
Current Assets: |
|
|
|
|
|
||
|
Cash |
|
$ |
222,265 |
|
$ |
166,562 |
|
|
Restricted Cash |
|
500,000 |
|
— |
|
||
|
Accounts receivable, less allowance for doubtful accounts of $510,477 and $324,627 |
|
12,099,450 |
|
12,271,719 |
|
||
|
Inventories |
|
10,243,083 |
|
10,670,520 |
|
||
|
Prepaid expenses and other current assets |
|
710,798 |
|
426,537 |
|
||
|
Deferred income taxes |
|
223,790 |
|
223,790 |
|
||
|
Total current assets |
|
23,999,386 |
|
23,759,128 |
|
||
|
|
|
|
|
|
|
||
|
Property, plant and equipment, net |
|
17,798,893 |
|
17,317,212 |
|
||
|
|
|
|
|
|
|
||
|
Other Assets |
|
|
|
|
|
||
|
Goodwill |
|
8,221,222 |
|
8,581,731 |
|
||
|
Patents, agreements and trademarks, less amortization of $1,139,671 and $1,086,819 |
|
737,577 |
|
553,905 |
|
||
|
Cash surrender value of life insurance, net |
|
4,140,832 |
|
4,779,311 |
|
||
|
Deferred tax assets |
|
412,125 |
|
412,125 |
|
||
|
Investment in joint venture |
|
758,054 |
|
1,284,595 |
|
||
|
Restricted investments |
|
1,213,689 |
|
1,037,118 |
|
||
|
Other assets |
|
10,100 |
|
8,750 |
|
||
|
|
|
$ |
57,291,878 |
|
$ |
57,733,875 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
||
|
Current Liabilities |
|
|
|
|
|
||
|
Accounts Payable |
|
$ |
4,979,438 |
|
$ |
5,246,462 |
|
|
Notes payable to bank |
|
133,956 |
|
1,476,157 |
|
||
|
Accrued payroll and other compensation |
|
876,220 |
|
1,395,392 |
|
||
|
Accrued expenses |
|
723,434 |
|
649,342 |
|
||
|
Accrued pension expense - current |
|
547,356 |
|
547,356 |
|
||
|
Income taxes payable |
|
369,843 |
|
781,413 |
|
||
|
Current portion of long-term debt |
|
3,277,096 |
|
2,359,549 |
|
||
|
Total current liabilities |
|
10,907,343 |
|
12,455,671 |
|
||
|
|
|
|
|
|
|
||
|
Long-term debt, less current portion |
|
11,605,579 |
|
6,005,172 |
|
||
|
Deferred compensation |
|
1,213,689 |
|
1,037,118 |
|
||
|
Accrued pension expense |
|
964,460 |
|
626,416 |
|
||
|
|
|
|
|
|
|
||
|
Commitments and Contingencies (Note 12) |
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
Stockholders’ Equity |
|
|
|
|
|
||
|
First Serial Preferred Stock, $1.00 par value: Authorized 100,000 shares; none issued |
|
— |
|
— |
|
||
|
Common Stock, $.10 par value: Authorized 10,000,000 shares; 5,237,470 and 5,135,901 issued; 3,668,480 and 4,047,317 outstanding |
|
523,747 |
|
513,590 |
|
||
|
Additional paid-in capital |
|
5,291,361 |
|
4,342,224 |
|
||
|
Treasury Stock, at cost, 1,568,990 and 1,088,584 shares of common stock |
|
(10,942,690 |
) |
(4,687,565 |
) |
||
|
Accumulated other comprehensive income (loss) |
|
(126,737 |
) |
(151,014 |
) |
||
|
Retained earnings |
|
37,855,126 |
|
37,592,263 |
|
||
|
Total stockholders’ equity |
|
32,600,807 |
|
37,609,498 |
|
||
|
Total liabilities and stockholders’ equity |
|
$ |
57,291,878 |
|
$ |
57,733,875 |
|
See accompanying notes to the consolidated financial statements
3
CHASE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
|
|
|
Three Months Ended |
|
Six Months Ended |
|
||||||||
|
|
|
February 29, 2004 |
|
February 28, 2003 |
|
February 29, 2004 |
|
February 28, 2003 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Revenue |
|
|
|
|
|
|
|
|
|
||||
|
Sales |
|
$ |
19,564,514 |
|
$ |
15,718,210 |
|
$ |
41,612,165 |
|
$ |
33,507,862 |
|
|
Royalty, commissions and other income |
|
312,468 |
|
203,890 |
|
552,438 |
|
391,519 |
|
||||
|
|
|
19,876,982 |
|
15,922,100 |
|
42,164,603 |
|
33,899,381 |
|
||||
|
Costs and Expenses |
|
|
|
|
|
|
|
|
|
||||
|
Cost of products and services sold |
|
14,030,333 |
|
11,126,003 |
|
29,985,056 |
|
23,410,952 |
|
||||
|
Selling, general and administrative expenses |
|
4,024,002 |
|
3,304,574 |
|
7,904,745 |
|
6,934,303 |
|
||||
|
Loss on impairment of goodwill |
|
— |
|
— |
|
579,182 |
|
— |
|
||||
|
&nbs | |||||||||||||