UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
ý QUARTERLY REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended May 1, 2004
OR
o 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 0-8493
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STEWART & STEVENSON SERVICES, INC. |
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(Exact name of registrant as specified in its charter) |
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Texas |
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74-1051605 |
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(State or other jurisdiction of |
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(I.R.S. Employer |
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2707 North Loop West, Houston, Texas |
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77008 |
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(Address of principal executive offices) |
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(Zip Code) |
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(713) 868-7700 |
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(Registrant’s telephone number, including area code) |
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not applicable |
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(Former name, former address and former fiscal year, |
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 ý No o
Number of shares outstanding of each of the registrant’s classes of common stock, as of May 24, 2004:
Common Stock, without Par Value: 28,728,885 Shares
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Item 1. Financial Statements. |
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The following information required by Rule 10-01 of Regulation S-X is provided herein for Stewart & Stevenson Services, Inc. and Subsidiaries (collectively, the “Company”): |
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Consolidated Condensed Balance Sheets – May 1, 2004 and January 31, 2004. |
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Consolidated Condensed Statements of Operations – Three Months Ended May 1, 2004 and May 3, 2003. |
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Consolidated Condensed Statements of Cash Flows – Three Months Ended May 1, 2004 and May 3, 2003. |
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STEWART & STEVENSON SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
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(In thousands) |
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May 1, 2004 |
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January 31, 2004 |
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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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$ |
95,068 |
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$ |
53,959 |
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Short-term investments |
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11,235 |
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7,745 |
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Accounts receivable, net |
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134,162 |
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163,324 |
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Recoverable costs and accrued profits not yet billed |
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23,863 |
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21,653 |
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Inventories |
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156,164 |
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166,315 |
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Excess of current cost over LIFO values |
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(45,889 |
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(45,330 |
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Deferred income tax asset |
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23,571 |
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23,591 |
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Income tax receivable |
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25,203 |
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25,846 |
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Other current assets |
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15,432 |
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17,310 |
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Total assets of discontinued operations |
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4,725 |
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8,059 |
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Total Current Assets |
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443,534 |
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442,472 |
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Property, Plant and Equipment, net |
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129,887 |
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136,165 |
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Deferred Income Tax Asset |
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14,020 |
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15,523 |
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Intangibles and Other Assets, net |
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9,283 |
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9,300 |
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Total Assets |
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$ |
596,724 |
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$ |
603,460 |
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Liabilities and Shareholders’ Equity |
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Current Liabilities: |
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Notes payable |
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$ |
1,908 |
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$ |
1,932 |
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Current portion of long-term debt |
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250 |
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250 |
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Accounts payable |
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63,902 |
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72,028 |
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Accrued payrolls and incentives |
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18,657 |
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18,092 |
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Billings in excess of incurred costs |
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65,430 |
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69,376 |
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Estimated losses on uncompleted contracts |
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16,055 |
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16,306 |
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Other current liabilities |
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45,021 |
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43,049 |
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Total liabilities of discontinued operations |
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2,152 |
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1,908 |
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Total Current Liabilities |
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213,375 |
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222,941 |
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Long-Term Debt, net of current portion |
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26,260 |
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26,260 |
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Accrued Postretirement Benefits and Pension |
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52,611 |
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52,056 |
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Other Long-Term Liabilities |
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3,753 |
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4,720 |
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Total Liabilities |
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295,999 |
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305,977 |
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Shareholders’ Equity: |
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Common stock, without par value, 100,000,000 shares authorized; 28,718,885 and 28,644,510 shares issued, respectively |
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57,939 |
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57,056 |
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Accumulated other comprehensive loss |
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(26,183 |
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(25,534 |
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Retained earnings |
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268,969 |
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265,961 |
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Total Shareholders’ Equity |
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300,725 |
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297,483 |
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Total Liabilities and Shareholders’ Equity |
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$ |
596,724 |
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$ |
603,460 |
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See accompanying notes to consolidated condensed financial statements.
3
STEWART & STEVENSON SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
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Three Months Ended |
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(In thousands, except per share data) |
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May 1, 2004 |
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May 3, 2003 |
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(Unaudited) |
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Sales |
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$ |
304,288 |
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$ |
289,772 |
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Cost of sales |
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266,228 |
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248,893 |
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Gross profit |
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38,060 |
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40,879 |
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Selling and administrative expenses |
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29,779 |
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35,309 |
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Pension curtailment expense |
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— |
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2,400 |
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Other (income) expense, net |
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(606 |
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86 |
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Operating profit |
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8,887 |
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3,084 |
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Interest expense |
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517 |
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1,244 |
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Interest and investment income |
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(254 |
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(500 |
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Earnings from continuing operations before income taxes |
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8,624 |
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2,340 |
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Income tax expense |
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3,118 |
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682 |
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Net earnings from continuing operations |
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5,506 |
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1,658 |
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Loss from discontinued operations, net of tax of ($34) and ($426) |
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(64 |
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(823 |
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Net earnings |
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$ |
5,442 |
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$ |
835 |
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