UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13
OR 15 (d) OF THE |
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For the quarterly period ended January 31, 2005 |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13
OR 15(d) OF |
For the transition period from to
Commission file number 1-4822
EARL SCHEIB, INC.
(Exact name of registrant
as specified in its charter)
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Delaware |
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95-1759002 |
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(State or other jurisdiction of |
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(I.R.S. Employer |
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incorporation or organization) |
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Identification No.) |
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15206 Ventura Boulevard, Suite 200 |
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Sherman Oaks, California |
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91403 |
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(Address of principal executive offices) |
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(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 March 8, 2005, the registrant had 4,803,311 shares of its Capital Stock, $1.00 par value issued and 4,388,118 shares outstanding.
This report contains a total of 14 pages.
PART I-FINANCIAL INFORMATION
EARL
SCHEIB, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share data)
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Unaudited |
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January 31, |
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April 30, |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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$ |
2,107 |
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$ |
2,188 |
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Accounts receivable, less allowances of $112 at January 31, 2005 and $143 at April 30, 2004 |
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584 |
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485 |
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Inventories |
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2,006 |
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1,829 |
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Prepaid expenses, including advertising costs of $402 at January 31, 2005 and $393 at April 30, 2004 |
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1,419 |
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1,649 |
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Deferred income taxes |
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1,707 |
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1,707 |
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Other current assets |
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284 |
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435 |
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Total Current Assets |
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8,107 |
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8,293 |
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Property, plant and equipment, net |
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8,227 |
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8,668 |
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Deferred income taxes |
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234 |
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234 |
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Other, including cash surrender value of life insurance of $2,649 at January 31, 2005 and $2,598 at April 30, 2004 |
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2,896 |
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2,949 |
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Total Assets |
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$ |
19,464 |
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$ |
20,144 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current Liabilities: |
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Accounts payable |
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$ |
783 |
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$ |
598 |
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Accrued expenses: |
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Payroll and related taxes |
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1,186 |
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1,192 |
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Insurance |
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2,680 |
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2,564 |
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Interest |
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96 |
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117 |
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Advertising |
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350 |
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359 |
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Legal and professional |
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332 |
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443 |
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Other |
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1,119 |
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1,208 |
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Income taxes payable |
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3 |
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30 |
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Total Current Liabilities |
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6,549 |
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6,511 |
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Deferred management compensation |
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2,874 |
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2,931 |
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Long-term debt and obligations to life insurance companies |
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1,683 |
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1,683 |
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Commitments and contingencies |
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— |
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— |
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Shareholders’ Equity: |
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Capital stock $1 par - 12,000,000 shares authorized; 4,803,000 issued; 4,388,000 and 4,380,000 outstanding at January 31, 2005 and April 30, 2004, respectively |
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4,803 |
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4,803 |
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Additional paid-in capital |
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6,756 |
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6,756 |
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Retained earnings (accumulated deficit) |
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(298 |
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422 |
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Treasury stock (415,000 and 423,000 shares at January 31, 2005 and April 30, 2004, respectively) |
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(2,903 |
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(2,962 |
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Total Shareholders’ Equity |
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8,358 |
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9,019 |
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Total Liabilities and Shareholders’ Equity |
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$ |
19,464 |
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$ |
20,144 |
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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)
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Three
Months Ended |
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Nine
Months Ended |
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2005 |
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2004 |
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2005 |
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2004 |
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Net sales |
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$ |
9,732 |
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$ |
9,001 |
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$ |
34,871 |
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$ |
35,115 |
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Cost of sales |
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8,455 |
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8,341 |
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26,639 |
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28,320 |
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Gross profit |
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1,277 |
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660 |
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8,232 |
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6,795 |
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Selling, general & administrative expense |
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2,369 |
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2,371 |
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8,321 |
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8,514 |
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Operating loss |
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(1,092 |
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(1,711 |
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(89 |
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(1,719 |
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Gain on sales of property and equipment |
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— |
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— |
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