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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 31, 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 1-4822

 

EARL SCHEIB, INC.

(Exact name of registrant as specified in its charter)

 

Delaware

 

95-1759002

(State or other jurisdiction of
incorporation or organization)

 

(I.R.S. Employer
Identification No.)

 

 

 

15206 Ventura Boulevard, Suite 200
Sherman Oaks, California

 

91403

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code:   (818) 981-9992

 

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

 

As of December 8, 2004, the registrant had 4,803,311 shares of its Capital Stock, $1.00 par value issued and 4,388,118 shares outstanding.

 

This report contains a total of 13 pages.

 

 


 

PART I-FINANCIAL INFORMATION

 

EARL SCHEIB, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except share data)

 

 

 

Unaudited

 

 

 

 

 

Oct. 31,
2004

 

April 30,
2004

 

ASSETS

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

3,744

 

$

2,188

 

Accounts receivable, less allowances of $111 at October 31, 2004 and $143 at April 30, 2004

 

636

 

485

 

Inventories

 

1,806

 

1,829

 

Prepaid expenses, including advertising costs of $403 at October 31, 2004 and $393 at April 30, 2004

 

1,414

 

1,649

 

Deferred income taxes

 

1,707

 

1,707

 

Other current assets

 

396

 

435

 

Total Current Assets

 

9,703

 

8,293

 

 

 

 

 

 

 

Property, plant and equipment, net

 

8,075

 

8,668

 

 

 

 

 

 

 

Deferred income taxes

 

234

 

234

 

 

 

 

 

 

 

Other, including cash surrender value of life insurance of $2,634 at October 31, 2004 and $2,598 at April 30, 2004

 

2,880

 

2,949

 

 

 

 

 

 

 

Total Assets

 

$

20,892

 

$

20,144

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable

 

$

655

 

$

598

 

Accrued expenses:

 

 

 

 

 

Payroll and related taxes

 

1,061

 

1,192

 

Insurance

 

2,736

 

2,564

 

Interest

 

68

 

117

 

Advertising

 

490

 

359

 

Legal and professional

 

379

 

443

 

Other

 

1,267

 

1,208

 

Income taxes payable

 

15

 

30

 

Total Current Liabilities

 

6,671

 

6,511

 

 

 

 

 

 

 

Deferred management compensation

 

2,904

 

2,931

 

 

 

 

 

 

 

Long-term debt and obligations to life insurance companies

 

1,683

 

1,683

 

 

 

 

 

 

 

Commitments and contingencies

 

—

 

—

 

 

 

 

 

 

 

Shareholders’ Equity:

 

 

 

 

 

Capital stock $1 par - 12,000,000 shares authorized;
4,803,000 issued and 4,380,000 outstanding

 

4,803

 

4,803

 

Additional paid-in capital

 

6,756

 

6,756

 

Retained earnings

 

1,037

 

422

 

Treasury stock (423,000 shares)

 

(2,962

)

(2,962

)

 

 

 

 

 

 

Total Shareholders’ Equity

 

9,634

 

9,019

 

 

 

 

 

 

 

Total Liabilities and Shareholders’ Equity

 

$

20,892

 

$

20,144

 

 

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)

 

 

 

Three Months Ended
October 31,

 

Six Months Ended
October 31,

 

 

 

2004

 

2003

 

2004

 

2003

 

Net sales

 

$

12,448

 

$

12,860

 

$

25,139

 

$

26,114

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

9,089

 

10,040

 

18,184

 

19,979

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

3,359

 

2,820

 

6,955

 

6,135

 

 

 

 

 

 

 

 

 

 

 

Selling, general & administrative expense

 

3,128

 

3,102

 

5,952

 

6,143