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 May 31, 2004
Commission File Number: 1-9852
CHASE CORPORATION
(Exact name of registrant as specified in its charter)
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Massachusetts |
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11-1797126 |
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(State or other
jurisdiction of incorporation |
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(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 June 30, 2004 was 3,751,049.
CHASE CORPORATION
INDEX TO FORM 10-Q
For the Quarter Ended May 31, 2004
2
Part 1 – FINANCIAL INFORMATION
Item 1 – Unaudited Financial Statements
CHASE
CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
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May 31, 2004 |
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August 31, 2003 |
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ASSETS |
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Current Assets: |
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Cash |
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$ |
188,043 |
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$ |
166,562 |
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Restricted Cash |
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500,000 |
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— |
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Accounts receivable, less allowance for doubtful accounts of $246,412 and $324,627 |
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12,243,306 |
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12,271,719 |
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Inventories |
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11,805,595 |
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10,670,520 |
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Prepaid expenses and other current assets |
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538,153 |
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426,537 |
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Deferred income taxes |
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223,790 |
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223,790 |
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Total current assets |
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25,498,887 |
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23,759,128 |
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Property, plant and equipment, net |
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17,452,220 |
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17,317,212 |
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Other Assets |
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Goodwill |
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8,221,222 |
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8,581,731 |
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Patents, agreements and trademarks, less amortization of $1,188,597 and $1,086,819 |
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700,786 |
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553,905 |
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Cash surrender value of life insurance, net |
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3,965,256 |
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4,779,311 |
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Deferred tax assets |
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412,125 |
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412,125 |
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Investment in joint venture |
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753,886 |
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1,284,595 |
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Restricted investments |
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1,208,051 |
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1,037,118 |
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Other assets |
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9,155 |
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8,750 |
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$ |
58,221,588 |
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$ |
57,733,875 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current Liabilities |
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Accounts Payable |
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$ |
5,463,839 |
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$ |
5,246,462 |
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Notes payable to bank |
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135,771 |
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1,476,157 |
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Accrued payroll and other compensation |
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1,264,631 |
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1,395,392 |
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Accrued expenses |
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613,837 |
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1,430,755 |
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Accrued pension expense - current |
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391,509 |
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547,356 |
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Current portion of long-term debt |
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3,377,139 |
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2,359,549 |
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Total current liabilities |
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11,246,726 |
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12,455,671 |
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Long-term debt, less current portion |
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10,419,496 |
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6,005,172 |
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Deferred compensation |
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1,208,051 |
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1,037,118 |
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Accrued pension expense |
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741,923 |
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626,416 |
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Commitments and Contingencies (Note 12) |
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Stockholders’ Equity |
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First Serial Preferred Stock, $1.00 par value: Authorized 100,000 shares; none issued |
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— |
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— |
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Common Stock, $.10 par value: Authorized 10,000,000 shares; 5,310,170 and 5,135,901 issued; 3,741,180 and 4,047,317 outstanding |
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531,017 |
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513,590 |
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Additional paid-in capital |
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5,915,830 |
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4,342,224 |
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Treasury Stock, at cost, 1,568,990 and 1,088,584 shares of common stock |
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(10,942,690 |
) |
(4,687,565 |
) |
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Accumulated other comprehensive income (loss) |
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(127,461 |
) |
(151,014 |
) |
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Retained earnings |
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39,228,696 |
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37,592,263 |
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Total stockholders’ equity |
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34,605,392 |
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37,609,498 |
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Total liabilities and stockholders’ equity |
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$ |
58,221,588 |
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$ |
57,733,875 |
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See accompanying notes to the consolidated financial statements
3
CHASE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
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Three Months Ended May 31, |
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Nine Months Ended May 31, |
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2004 |
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2003 |
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2004 |
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2003 |
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Revenue |
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Sales |
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$ |
21,915,155 |
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$ |
19,253,429 |
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$ |
63,527,320 |
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$ |
52,761,291 |
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Royalty and commissions |
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286,018 |
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248,466 |
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838,456 |
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639,985 |
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22,201,173 |
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19,501,895 |
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64,365,776 |
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53,401,276 |
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Costs and Expenses |
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Cost of products and services sold |
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