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 October 2, 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 1-3834
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 offices) |
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(Zip Code) |
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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
fiscal |
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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
Number of common shares outstanding at November 3, 2004 1,656,427
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
CONTINENTAL MATERIALS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
OCTOBER 2, 2004 and JANUARY 3, 2004
(000’s omitted except share data)
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OCTOBER 2, |
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JANUARY 3, |
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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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$ |
4,609 |
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Receivables, net |
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18,191 |
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17,054 |
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Inventories: |
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Finished goods |
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8,702 |
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7,163 |
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Work in process |
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1,555 |
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1,486 |
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Raw materials and supplies |
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8,024 |
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7,532 |
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Prepaid expenses |
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3,529 |
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3,064 |
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Total current assets |
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40,001 |
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40,908 |
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Property, plant and equipment, net |
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30,058 |
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30,873 |
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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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1,009 |
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1,178 |
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Other assets |
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1,612 |
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1,493 |
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$ |
80,054 |
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$ |
81,826 |
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LIABILITIES |
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Current liabilities: |
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Bank loan payable |
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$ |
100 |
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$ |
— |
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Current portion of long-term debt |
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2,000 |
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1,970 |
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Accounts payable and accrued expenses |
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14,093 |
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13,504 |
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Income taxes |
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617 |
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700 |
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Total current liabilities |
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16,810 |
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16,174 |
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Long-term debt |
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7,500 |
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9,000 |
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Deferred income taxes |
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3,219 |
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3,219 |
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Other long-term liabilities |
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2,273 |
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2,576 |
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SHAREHOLDERS’ EQUITY |
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Common shares, $0.25 par value; authorized 3,000,000 shares; issued 2,574,264 shares |
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643 |
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643 |
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Capital in excess of par value |
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1,982 |
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1,982 |
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Retained earnings |
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61,262 |
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60,200 |
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Accumulated other comprehensive losses (interest rate swap adjustments) |
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(112 |
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(265 |
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Treasury shares, 917,837 and 853,901, at cost |
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(13,523 |
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(11,703 |
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50,252 |
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50,857 |
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$ |
80,054 |
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$ |
81,826 |
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See accompanying notes
2
CONTINENTAL MATERIALS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS
FOR THE THREE MONTHS ENDED OCTOBER 2, 2004 AND SEPTEMBER 27, 2003
(Unaudited)
(000’s omitted except per-share amounts)
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OCTOBER 2, |
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SEPTEMBER 27, |
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Sales |
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$ |
30,900 |
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$ |
30,139 |
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Costs and expenses: |
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Cost of sales (exclusive of depreciation, depletion and amortization) |
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24,736 |
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23,382 |
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Depreciation, depletion and amortization |
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1,421 |
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1,517 |
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Selling and administrative |
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3,756 |
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4,036 |
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Gain on disposition of property and equipment |
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24 |
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51 |
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Operating income |
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1,011 |
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1,255 |
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Interest |
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(154 |
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(206 |
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Other income, net |
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59 |
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40 |
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Income before income taxes |
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916 |
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1,089 |
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Provision for income taxes |
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330 |
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382 |
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Net income |
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586 |
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707 |
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Retained earnings, beginning of period |
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60,676 |
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57,466 |
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Retained earnings, end of period |
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$ |
61,262 |
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$ |
58,173 |
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Basic earnings per share |
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$ |
.35 |
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$ |
.41 |
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Average shares outstanding |
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1,663 |
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