Washington,
D.C. 20549
|
||||
FOR
THE FISCAL YEAR ENDED DECEMBER
29,
2007
|
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(
Exact name of registrant as specified in
its charter)
|
||||
(State
of incorporation)
|
(I.R.S.
Employer Identification No.)
|
|||
|
||||
|
||||
(Title
of Class)
|
|
|||
|
||||
|
||||
Indicate
by check mark if the registrant is not required to file reports pursuant
to Section 13 or Section 15(d) of the Act. Yes
__ No
X
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
X
No_
|
||||
|
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Large accelerated Filer
__ Accelerated
filer
X
Non-accelerated
filer __
Smaller
reporting company __
Indicate
by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Act). Yes
__ No
X
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|
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2007
|
2006
|
|||||||||||||||
Quarter
|
High
|
Low
|
High
|
Low
|
||||||||||||
1st
|
$ | 29.98 | $ | 18.01 | $ | 15.00 | $ | 10.38 | ||||||||
2nd
|
47.45 | 29.50 | 15.13 | 11.40 | ||||||||||||
3rd
|
36.32 | 17.01 | 15.40 | 12.39 | ||||||||||||
4th
|
23.89 | 14.79 | 18.90 | 13.36 |
2007
|
2006
|
2005
|
2004
|
2003
|
||||||||||||||||
Operations
|
||||||||||||||||||||
Net
sales
|
$ | 178,285 | $ | 152,047 | $ | 131,408 | $ | 101,602 | $ | 80,408 | ||||||||||
Gross
profit
|
28,163 | 22,724 | 16,781 | 13,976 | 8,389 | |||||||||||||||
Selling,
general & administrative expense
|
11,706 | 10,562 | 10,369 | 9,432 | 8,177 | |||||||||||||||
Asset
impairment & environmental costs
|
- | - | - | - | 490 | |||||||||||||||
Operating
income (loss)
|
16,457 | 12,757 | 6,412 | 4,544 | (278 | ) | ||||||||||||||
Net
income (loss) continuing operations
|
10,125 | 7,608 | 5,147 | 2,274 | (580 | ) | ||||||||||||||
Net
loss discontinued operations
|
- | - | (51 | ) | (1,100 | ) | (840 | ) | ||||||||||||
Net
income (loss)
|
10,125 | 7,608 | 5,096 | 1,174 | (1,421 | ) | ||||||||||||||
Financial
Position
|
||||||||||||||||||||
Total
assets
|
96,621 | 89,357 | 70,982 | 71,202 | 64,925 | |||||||||||||||
Working
capital
|
46,699 | 46,384 | 28,664 | 35,088 | 28,706 | |||||||||||||||
Long-term
debt, less current portion
|
10,246 | 17,731 | 8,091 | 21,205 | 18,761 | |||||||||||||||
Shareholders'
equity
|
58,140 | 47,127 | 39,296 | 33,930 | 32,556 | |||||||||||||||
Financial
Ratios
|
||||||||||||||||||||
Current
ratio
|
2.9 | 3.4 | 2.5 | 3.8 | 3.5 | |||||||||||||||
Gross
profit to net sales
|
16 | % | 15 | % | 13 | % | 14 | % | 10 | % | ||||||||||
Long-term
debt to capital
|
15 | % | 27 | % | 17 | % | 38 | % | 37 | % | ||||||||||
Return
on average assets
|
11 | % | 9 | % | 7 | % | 3 | % | - | |||||||||||
Return
on average equity
|
19 | % | 18 | % | 14 | % | 7 | % | - | |||||||||||
Per
Share Data (income/(loss) – diluted)
|
||||||||||||||||||||
Net
income (loss) continuing operations
|
$ | 1.60 | $ | 1.22 | $ | .84 | $ | .37 | $ | (.10 | ) | |||||||||
Net
loss discontinued operations
|
- | - | (.01 | ) | (.18 | ) | (.14 | ) | ||||||||||||
Net
income (loss)
|
1.60 | 1.22 | .83 | .19 | (.24 | ) | ||||||||||||||
Dividends
declared and paid
|
.15 | - | - | - | - | |||||||||||||||
Book
value
|
9.32 | 7.68 | 6.43 | 5.64 | 5.44 | |||||||||||||||
Other
Data
|
||||||||||||||||||||
Depreciation
and amortization
|
$ | 2,634 | $ | 2,672 | $ | 2,862 | $ | 3,068 | $ | 2,976 | ||||||||||
Capital
expenditures
|
$ | 4,486 | $ | 3,092 | $ | 3,246 | $ | 2,313 | $ | 1,325 | ||||||||||
Employees
at year end
|
482 | 437 | 434 | 442 | 470 | |||||||||||||||
Shareholders
of record at year end
|
834 | 897 | 935 | 1,009 | 1,039 | |||||||||||||||
Average
shares outstanding - diluted
|
6,296 | 6,234 | 6,139 | 6,142 | 5,997 | |||||||||||||||
Stock
Price
|
||||||||||||||||||||
Price
range of common stock
|
||||||||||||||||||||
High
|
$ | 47.45 | $ | 18.90 | $ | 12.34 | $ | 10.75 | $ | 8.54 | ||||||||||
Low
|
14.79 | 10.38 | 9.10 | 6.52 | 3.96 | |||||||||||||||
Close
|
17.67 | 18.54 | 10.46 | 9.90 | 6.92 |
2007
|
2006
|
2005
|
||||||||||||||||||||||
(Amount
in thousands)
|
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
||||||||||||||||||
Net
sales
|
$ | 126,219 | 100.0 | % | $ | 102,822 | 100.0 | % | $ | 86,053 | 100.0 | % | ||||||||||||
Cost
of goods sold
|
104,816 | 83.0 | % | 86,712 | 84.3 | % | 74,744 | 86.9 | % | |||||||||||||||
Gross
profit
|
21,403 | 17.0 | % | 16,110 | 15.7 | % | 11,309 | 13.1 | % | |||||||||||||||
Selling
and administrative
|
||||||||||||||||||||||||
expense
|
5,015 | 4.0 | % | 4,498 | 4.4 | % | 4,494 | 5.2 | % | |||||||||||||||
Operating
income
|
$ | 16,388 | 13.0 | % | $ | 11,612 | 11.3 | % | $ | 6,815 | 7.9 | % | ||||||||||||
Year-end
backlogs -
|
||||||||||||||||||||||||
Piping
systems
|
$ | 57,000 | $ | 54,900 | $ | 20,100 |
2007
|
2006
|
2005
|
||||||||||||||||||||||
(Amount
in thousands)
|
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
||||||||||||||||||
Net
sales
|
$ | 52,066 | 100.0 | % | $ | 49,225 | 100.0 | % | $ | 45,355 | 100.0 | % | ||||||||||||
Cost
of goods sold
|
45,306 | 87.0 | % | 42,611 | 86.6 | % | 39,883 | 87.9 | % | |||||||||||||||
Gross
profit
|
6,760 | 13.0 | % | 6,614 | 13.4 | % | 5,472 | 12.1 | % | |||||||||||||||
Selling
and administrative
|
||||||||||||||||||||||||
expense
|
3,983 | 7.6 | % | 3,970 | 8.1 | % | 3,833 | 8.5 | % | |||||||||||||||
Operating
income
|
$ | 2,777 | 5.4 | % | $ | 2,644 | 5.3 | % | $ | 1,639 | 3.6 | % | ||||||||||||
(Amounts
in thousands)
|
Payment
Obligations for the Year Ended
|
|||||||||||||||||||||||||||
Total
|
2008
|
2009
|
2010
|
2011
|
2012
|
Thereafter
|
||||||||||||||||||||||
Obligations:
|
||||||||||||||||||||||||||||
Long-term
debt
(1)
|
$ | 6,067 | $ | 467 | $ | 467 | $ | 5,133 | $ | - | $ | - | $ | - | ||||||||||||||
Revolving
credit facility
(1)
|
4,646 | - | - | 4,646 | - | - | - | |||||||||||||||||||||
Interest
payments
(2)
|
2,850 | 982 | 950 | 918 | - | - | - | |||||||||||||||||||||
Operating
leases
|
303 | 103 | 87 | 79 | 34 | - | - | |||||||||||||||||||||
Capital
leases
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Purchase
obligations
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Deferred
compensation
(3)
|
409 | 72 | 72 | 72 | 72 | 83 | 38 | |||||||||||||||||||||
Total
|
$ | 14,275 | $ | 1,624 | $ | 1,576 | $ | 10,848 | $ | 106 | $ | 83 | $ | 38 | ||||||||||||||
(1)
Includes only obligations to pay principal not interest
expense.
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||||||||||||||||||||||||||||
(2)
Represents estimated interest payments to be made on the bank debt, with
principal payments made as
|
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scheduled,
using average borrowings for each year times the average interest rate for
2007 on the debt.
|
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(3)
for a description of the deferred compensation obligation, see Note H to
the Consolidated Financial Statements
|
||||||||||||||||||||||||||||
included
in Item 8 of this Form 10-K.
|
Years
ended December 29, 2007, December 30, 2006 and December 31,
2005
|
||||||||||||
2007
|
2006
|
2005
|
||||||||||
Net
sales
|
$ | 178,285,015 | $ | 152,047,386 | $ | 131,408,094 | ||||||
Cost
of sales
|
150,121,564 | 129,323,082 | 114,626,675 | |||||||||
Gross
profit
|
28,163,451 | 22,724,304 | 16,781,419 | |||||||||
Selling,
general and administrative expense
|
11,706,485 | 10,562,498 | 10,369,188 | |||||||||
Gain
from sale of property and plant (Note B)
|
- | (595,600 | ) | - | ||||||||
Operating
income
|
16,456,966 | 12,757,406 | 6,412,231 | |||||||||
Other
(income) and expense
|
||||||||||||
Gain
on trade case settlement (Note B)
|
- | - | (2,541,950 | ) | ||||||||
Loss
on write-off of note receivable (Note B)
|
- | - | 840,000 | |||||||||
Interest
expense
|
1,153,413 | 793,884 | 919,812 | |||||||||
Other,
net
|
(20,211 | ) | (632 | ) | (83,995 | ) | ||||||
Income
from continuing operations before
|
||||||||||||
income
tax
|
15,323,764 | 11,964,154 | 7,278,364 | |||||||||
Provision
for income taxes
|
5,199,000 | 4,356,000 | 2,131,000 | |||||||||
Net
income from continuing operations
|
10,124,764 | 7,608,154 | 5,147,364 | |||||||||
Loss
from discontinued operations
|
- | - | (73,413 | ) | ||||||||
Benefit
from income taxes
|
- | - | (22,000 | ) | ||||||||
Net
loss from discontinued operations (Note S)
|
- | - | (51,413 | ) | ||||||||
Net
income
|
$ | 10,124,764 | $ | 7,608,154 | $ | 5,095,951 | ||||||
Cost
of
|
||||||||||||||||||||
Capital
in
|
Common
|
|||||||||||||||||||
Common
|
Excess
of
|
Retained
|
Stock
in
|
|||||||||||||||||
Stock
|
Par
Value
|
Earnings
|
Treasury
|
Total
|
||||||||||||||||
Balance
at January 1, 2005
|
$ | 8,000,000 | $ | - | $ | 42,553,345 | $ | (16,623,517 | ) | $ | 33,929,828 | |||||||||
Net
income
|
5,095,951 | 5,095,951 | ||||||||||||||||||
Issuance
of 10,975 shares
|
||||||||||||||||||||
of
common stock
|
||||||||||||||||||||
from
the treasury
|
32,774 | 92,231 | 125,005 | |||||||||||||||||
Stock
options exercised
|
||||||||||||||||||||
for
77,301 shares, net
|
(32,774 | ) | (319,676 | ) | 498,004 | 145,554 | ||||||||||||||
Balance
at December 31, 2005
|
8,000,000 | - | 47,329,620 | (16,033,282 | ) | 39,296,338 | ||||||||||||||
Net
income
|
7,608,154 | 7,608,154 | ||||||||||||||||||
Issuance
of 6,554 shares
|
||||||||||||||||||||
of
common stock
|
||||||||||||||||||||
from
the treasury
|
25,690 | 55,536 | 81,226 | |||||||||||||||||
Stock
options exercised
|
||||||||||||||||||||
for
21,173 shares, net
|
(44,611 | ) | (16,752 | ) | 127,173 | 65,810 | ||||||||||||||
Employee
stock option
|
||||||||||||||||||||
compensation
|
75,624 | 75,624 | ||||||||||||||||||
Balance
at December 30, 2006
|
8,000,000 | 56,703 | 54,921,022 | (15,850,573 | ) | 47,127,152 | ||||||||||||||
Net
income
|
10,124,764 | 10,124,764 | ||||||||||||||||||
Payment
of dividends, $.15
|
||||||||||||||||||||
per
share
|
(927,189 | ) | (927,189 | ) | ||||||||||||||||
Issuance
of 1,945 shares
|
||||||||||||||||||||
of
common stock
|
||||||||||||||||||||
from
the treasury
|
57,919 | 17,070 | 74,989 | |||||||||||||||||
Stock
options exercised
|
||||||||||||||||||||
for 99,793
shares, net
|
223,137 | 327,328 | 550,465 | |||||||||||||||||
Employee
stock option and
|
||||||||||||||||||||
grant
compensation
|
174,761 | 174,761 | ||||||||||||||||||
Capital
contribution
|
20,340 | 20,340 | ||||||||||||||||||
Utilization
of unrecognized
|
||||||||||||||||||||
tax
benefits from prior
|
||||||||||||||||||||
years
– (Note K)
|
995,000 | 995,000 | ||||||||||||||||||
Balance
at December 29, 2007
|
$ | 8,000,000 | $ | 532,860 | $ | 65,113,597 | $ | (15,506,175 | ) | $ | 58,140,282 |
2007
|
2006
|
|||||||
Land
|
$ | 305,618 | $ | 305,618 | ||||
Land
improvements
|
970,235 | 965,235 | ||||||
Buildings
|
11,675,486 | 10,592,438 | ||||||
Machinery,
fixtures and equipment
|
47,019,510 | 44,126,119 | ||||||
Construction-in-progress
|
1,261,289 | 860,454 | ||||||
61,232,138 | 56,849,864 | |||||||
Less
accumulated depreciation
|
40,373,532 | 37,898,044 | ||||||
Total
property, plant and equipment
|
$ | 20,858,606 | $ | 18,951,820 |
2007
|
2006
|
|||||||
Deferred
charges
|
||||||||
Goodwill
|
$ | 1,354,730 | $ | 1,354,730 | ||||
Product
license agreements
|
150,000 | 150,000 | ||||||
Debt
expense
|
185,639 | 185,639 | ||||||
1,690,369 | 1,690,369 | |||||||
Less
accumulated amortization
|
167,348 | 112,424 | ||||||
Total
deferred charges, net
|
1,523,021 | 1,577,945 | ||||||
Other
assets
|
- | 7,392 | ||||||
Total
deferred charges, net and other assets
|
$ | 1,523,021 | $ | 1,585,337 |
2007
|
2006
|
|||||||
$
15,000,000 Revolving line of credit
|
$ | 4,646,016 | $ | 11,664,765 | ||||
$ 7,000,000
Term loan
|
6,066,666 | 6,533,333 | ||||||
10,712,682 | 18,198,098 | |||||||
Less
current portion of term loan
|
466,667 | 466,667 | ||||||
$ | 10,246,015 | $ | 17,731,431 |
2007
|
2006
|
|||||||
Salaries,
wages and commissions
|
$ | 2,871,635 | $ | 2,479,173 | ||||
Advances
from customers
|
6,031,371 | 1,786,418 | ||||||
Insurance
|
451,488 | 589,347 | ||||||
Taxes,
other than income taxes
|
340,096 | 331,771 | ||||||
Benefit
plans
|
244,143 | 218,191 | ||||||
Interest
|
258,254 | 147,403 | ||||||
Professional
fees
|
194,148 | 112,872 | ||||||
Other
accrued items
|
381,196 | 378,575 | ||||||
Total
accrued expenses
|
$ | 10,772,331 | $ | 6,043,750 |
Weighted
|
Weighted
|
|||||||||||||||||||
Average
|
Average
|
Intrinsic
|
||||||||||||||||||
Exercise
|
Contractual
|
Value
of
|
Options
|
|||||||||||||||||
Price
|
Outstanding
|
Term
|
Options
|
Available
|
||||||||||||||||
(in
years)
|
||||||||||||||||||||
At
January 1, 2005
|
$ | 7.93 | 505,000 | 173,000 | ||||||||||||||||
Granted
|
$ | 9.96 | 80,000 | (80,000 | ) | |||||||||||||||
Exercised
|
$ | 5.89 | (137,850 | ) | ||||||||||||||||
Cancelled
|
(106,100 | ) | 106,100 | |||||||||||||||||
Expired
|
(9,500 | ) | - | |||||||||||||||||
At
December 31, 2005
|
$ | 9.64 | 331,550 | $ | 740,000 | 199,100 | ||||||||||||||
Exercised
|
$ | 6.21 | (26,900 | ) | $ | 254,000 | ||||||||||||||
Cancelled
|
$ | 4.65 | (8,000 | ) | $ | 111,000 | 8,000 | |||||||||||||
Expired
|
$ | 18.88 | (14,500 | ) | - | - | ||||||||||||||
At
December 30, 2006
|
$ | 9.64 | 282,150 | 4.1 | $ | 2,512,000 | 207,100 | |||||||||||||
Exercised
|
$ | 10.39 | (132,407 | ) | $ | 2,400,000 | ||||||||||||||
Expired
|
$ | 12.14 | (19,000 | ) | $ | 369,000 | - | |||||||||||||
At
December 29, 2007
|
$ | 8.51 | 130,743 | 4.6 | $ | 1,198,000 | 207,100 | |||||||||||||
Exercisable
options
|
$ | 7.79 | 87,289 | 3.4 | $ | 863,000 | ||||||||||||||
Grant Date
|
||||||||||||||||||||
Fair
Value
|
||||||||||||||||||||
Options
expected to vest:
|
||||||||||||||||||||
At
December 30, 2006
|
$ | 9.96 | 55,856 | 8.1 | $ | 6.77 | ||||||||||||||
Vested
|
$ | 9.96 | (12,402 | ) | ||||||||||||||||
At
December 29, 2007
|
$ | 9.96 | 43,454 | 7.1 | $ | 6.77 | ||||||||||||||
Outstanding
Stock Options
|
Exercisable
Stock Options
|
||||||||||||||||||||||||
Weighted
Average
|
Weighted
|
||||||||||||||||||||||||
Remaining
|
Average
|
||||||||||||||||||||||||
Range
of
|
Exercise
|
Contractual
|
Exercise
|
||||||||||||||||||||||
Exercise
Prices
|
Shares
|
Price
|
Life
in Years
|
Shares
|
Price
|
||||||||||||||||||||
$
13.63
|
1,500 | $ | 13.63 | .33 | 1,500 | $ | 13.63 | ||||||||||||||||||
$ 7.28
|
to
|
$ |
7.75
|
45,250 | $ | 7.67 | 1.43 | 45,250 | $ | 7.67 | |||||||||||||||
$ 6.75
|
1,500 | $ | 6.75 | 2.38 | 1,500 | $ | 6.75 | ||||||||||||||||||
$ 5.01
|
1,500 | $ | 5.01 | 3.32 | 1,500 | $ | 5.01 | ||||||||||||||||||
$ 4.65
|
14,900 | $ | 4.65 | 4.32 | 14,900 | $ | 4.65 | ||||||||||||||||||
$ 9.96
|
66,093 | $ | 9.96 | 7.09 | 22,639 | $ | 9.96 | ||||||||||||||||||
130,743 | 87,289 |
|
||||
Net
income reported
|
$ | 5,095,951 | ||
Compensation
expense, net of tax
|
(305,192 | ) | ||
Pro
forma net income
|
$ | 4,790,759 | ||
Basic
income per share
|
$ | 0.84 | ||
Compensation
expense, net of tax
|
(0.05 | ) | ||
Pro
forma basic income per share
|
$ | 0.79 | ||
Diluted
income per share
|
$ | 0.83 | ||
Compensation
expense, net of tax
|
(0.05 | ) | ||
Pro
forma diluted income per share
|
$ | 0.78 |
(Amounts
in thousands)
|
2007
|
2006
|
||||||
Deferred
tax assets:
|
||||||||
Inventory
valuation reserves
|
$ | 1,125 | $ | 1,042 | ||||
Allowance
for doubtful accounts
|
449 | 401 | ||||||
Inventory
capitalization
|
577 | 555 | ||||||
Environmental
reserves
|
237 | 248 | ||||||
Other
|
423 | - | ||||||
Total
deferred tax assets
|
2,811 | 2,246 | ||||||
Deferred
tax liabilities:
|
||||||||
Tax
over book depreciation and amortization
|
2,895 | 2,772 | ||||||
Prepaid
expenses
|
142 | 465 | ||||||
Other
|
- | 916 | ||||||
Total
deferred tax liabilities
|
3,037 | 4,153 | ||||||
Net
deferred tax liabilities
|
$ | (226 | ) | $ | (1,907 | ) |
(Amounts
in thousands)
|
2007
|
2006
|
2005
|
|||||||||
Current:
|
||||||||||||
Federal
|
$ | 5,324 | $ | 4,001 | $ | 1,696 | ||||||
State
|
456 | 341 | 335 | |||||||||
Total
current
|
5,780 | 4,342 | 2,031 | |||||||||
Deferred:
|
||||||||||||
Federal
|
(538 | ) | 1 | 84 | ||||||||
State
|
(43 | ) | 13 | 16 | ||||||||
Total
deferred
|
(581 | ) | 14 | 100 | ||||||||
Total
|
$ | 5,199 | $ | 4,356 | $ | 2,131 |
(Amounts
in thousands)
|
2007
|
2006
|
2005
|
|||||||||||||||||||||
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
|||||||||||||||||||
Tax
at US statutory rates
|
$ | 5,273 | 34.4 | % | $ | 4,087 | 34.2 | % | $ | 2,475 | 34.0 | % | ||||||||||||
State
income taxes, net of
|
||||||||||||||||||||||||
Federal
tax benefit
|
271 | 1.8 | % | 205 | 1.7 | % | 221 | 3.0 | % | |||||||||||||||
Changes
in contingent
|
||||||||||||||||||||||||
tax
reserves
|
(151 | ) | (1.0 | %) | 259 | 2.2 | % | (501 | ) | (6.8 | %) | |||||||||||||
Manufacturing
exemption
|
(340 | ) | (2.2 | %) | (131 | ) | (1.1 | %) | (34 | ) | (.5 | %) | ||||||||||||
Other,
net
|
146 | .9 | % | (64 | ) | (.6 | %) | (30 | ) | (.4 | %) | |||||||||||||
Total
|
$ | 5,199 | 33.9 | % | $ | 4,356 | 36.4 | % | $ | 2,131 | 29.3 | % |
2007
|
2006
|
2005
|
||||||||||
Numerator:
|
||||||||||||
Net
income from continuing operations
|
$ | 10,124,764 | $ | 7,608,154 | $ | 5,147,364 | ||||||
Denominator:
|
||||||||||||
Denominator
for basic earnings per
|
||||||||||||
share
- weighted average shares
|
6,211,639 | 6,122,195 | 6,068,324 | |||||||||
Effect
of dilutive securities:
|
||||||||||||
Employee
stock options and stock grants
|
84,272 | 112,092 | 70,775 | |||||||||
Denominator
for diluted earnings per
|
||||||||||||
share
- weighted average shares
|
6,295,911 | 6,234,287 | 6,139,099 | |||||||||
Basic
income per share
|
$ | 1.63 | $ | 1.24 | $ | .85 | ||||||
Diluted
income per share
|
$ | 1.60 | $ | 1.22 | $ | .84 |
(Amounts
in thousands)
|
2007
|
2006
|
2005
|
|||||||||
Net
sales
|
||||||||||||
Metals
Segment
|
$ | 126,219 | $ | 102,822 | $ | 86,053 | ||||||
Specialty
Chemicals Segment
|
52,066 | 49,225 | 45,355 | |||||||||
$ | 178,285 | $ | 152,047 | $ | 131,408 | |||||||
Operating
income
|
||||||||||||
Metals
Segment
|
$ | 16,388 | $ | 11,612 | $ | 6,815 | ||||||
Specialty
Chemicals Segment
|
2,777 | 2,644 | 1,639 | |||||||||
19,165 | 14,256 | 8,454 | ||||||||||
Less
unallocated corporate expenses
|
2,708 | 2,094 | 2,042 | |||||||||
Gain
from sale of property and plant
|
- | (596 | ) | - | ||||||||
Operating
income
|
16,457 | 12,758 | 6,412 | |||||||||
Other
expense, net
|
1,133 | 794 | (866 | ) | ||||||||
Income
from continuing operations
|
$ | 15,324 | $ | 11,964 | $ | 7,278 | ||||||
Identifiable
assets
|
||||||||||||
Metals
Segment
|
$ | 62,463 | $ | 58,552 | ||||||||
Specialty
Chemicals Segment
|
27,318 | 24,702 | ||||||||||
Corporate
|
6,840 | 6,103 | ||||||||||
$ | 96,621 | $ | 89,357 | |||||||||
Depreciation
and amortization
|
||||||||||||
Metals
Segment
|
$ | 1,519 | $ | 1,543 | $ | 1,395 | ||||||
Specialty
Chemicals Segment
|
986 | 893 | 997 | |||||||||
Corporate
|
129 | 236 | 470 | |||||||||
$ | 2,634 | $ | 2,672 | $ | 2,862 | |||||||
Capital
expenditures
|
||||||||||||
Metals
Segment
|
$ | 2,222 | $ | 1,913 | $ | 2,635 | ||||||
Specialty
Chemicals Segment
|
2,128 | 1,172 | 534 | |||||||||
Corporate
|
136 | 7 | 77 | |||||||||
$ | 4,486 | $ | 3,092 | $ | 3,246 | |||||||
Geographic
sales
|
||||||||||||
United
States
|
$ | 173,144 | $ | 148,572 | $ | 126,676 | ||||||
Elsewhere
|
5,141 | 3,475 | 4,732 | |||||||||
$ | 178,285 | $ | 152,047 | $ | 131,408 |
(Amount
in thousands exept for per share data)
|
First
|
Second
|
Third
|
Fourth
|
||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
|||||||||||||
2007
|
||||||||||||||||
Net
sales
|
$ | 44,398 | $ | 43,941 | $ | 51,515 | $ | 38,431 | ||||||||
Gross
profit
|
8,820 | 8,312 | 6,977 | 4,054 | ||||||||||||
Net
income
|
3,525 | 3,196 | 2,260 | 1,144 | ||||||||||||
Per
common share
|
||||||||||||||||
Basic
|
.57 | .51 | .36 | .18 | ||||||||||||
Diluted
|
.56 | .50 | .36 | .18 | ||||||||||||
2006
|
||||||||||||||||
Net
sales
|
$ | 36,162 | $ | 36,729 | $ | 39,097 | $ | 40,059 | ||||||||
Gross
profit
|
3,999 | 5,269 | 6,209 | 7,247 | ||||||||||||
Net
income
|
698 | 1,498 | 2,409 | 3,003 | ||||||||||||
Per
common share
|
||||||||||||||||
Basic
|
.11 | .24 | .39 | .49 | ||||||||||||
Diluted
|
.11 | .24 | .39 | .48 |
(1)
|
Represents
shares remaining available for issuance under the 1998 Stock Option Plan
and the 2005 Stock Awards Plan.
|
(a)
|
The
following documents are filed as a part of this report:
|
||
1.
|
Financial
Statements: The following consolidated financial statements of Synalloy
Corporation are included in Item 8:
|
||
Consolidated
Balance Sheets at December 29, 2007 and December 30, 2006
|
|||
Consolidated
Statements of Operations for the years ended December 29, 2007, December
30, 2006 and December 31, 2005
|
|||
Consolidated
Statements of Shareholders' Equity for the years ended December 29, 2007,
December 30, 2006 and December 31, 2005
|
|||
Consolidated
Statements of Cash Flows for the years ended December 29, 2007, December
30, 2006 and December 31, 2005
|
|||
Notes
to Consolidated Financial Statements
|
|||
2.
|
Financial
Statements Schedules: The following consolidated financial statements
schedule of Synalloy Corporation is included in Item 15:
|
||
Schedule
II - Valuation and Qualifying Accounts for the years ended December 29,
2007, December 30, 2006 and December 31, 2005
|
|||
All
other schedules for which provision is made in the applicable accounting
regulations of the Securities and Exchange Commission are not required
under the related instructions or are inapplicable, and therefore have
been omitted.
|
|||
3.
|
Listing
of Exhibits:
|
||
See
"Exhibit Index"
|
Column
A
|
Column
B
|
Column
C
|
Column
D
|
Column
E
|
||||||||||||
Balance
at
|
Charged
to
|
Balance
at
|
||||||||||||||
Beginning
|
Cost
and
|
Deductions
|
End
of
|
|||||||||||||
Description
|
of
Period
|
Expenses
|
(1)
|
Period
|
||||||||||||
Year
ended December 29, 2007
|
||||||||||||||||
Deducted
from asset account:
|
||||||||||||||||
Allowance
for doubtful accounts
|
$ | 1,114,000 | $ | 229,000 | $ | 107,000 | $ | 1,236,000 | ||||||||
Year
ended December 30, 2006
|
||||||||||||||||
Deducted
from asset account:
|
||||||||||||||||
Allowance
for doubtful accounts
|
$ | 1,039,000 | $ | 315,000 | $ | 240,000 | $ | 1,114,000 | ||||||||
Year
ended December 31, 2005
|
||||||||||||||||
Deducted
from asset account:
|
||||||||||||||||
Allowance
for doubtful accounts
|
$ | 678,000 | $ | 512,000 | $ | 151,000 | $ | 1,039,000 | ||||||||
(1)
Allowances, uncollected accounts and credit balances written off against
reserve, net of recoveries.
|
By
/s/ Ronald H.
Braam
Ronald
H. Braam
Chief
Executive Officer
|
March 12, 2008
Date
|
By
/s/ Gregory M.
Bowie
Gregory
M. Bowie
Chief
Financial Officer
|
March 12,
2008
Date
|
By
/s/ James G. Lane,
Jr.
James
G. Lane, Jr.
Chairman
of the Board
|
March 12,
2008
Date
|
By
/s/ Sibyl N.
Fishburn
Sibyl
N. Fishburn
Director
|
March 12,
2008
Date
|
By
/s/ Carroll D.
Vinson
Carroll
D. Vinson
Director
|
March 12,
2008
Date
|
By
/s/ Murray H.
Wright
Murray
H. Wright
Director
|
March 12,
2008
Date
|
By
/s/ Craig C.
Bram
Craig
C. Bram
Director
|
March 12,
2008
Date
|
from
Item
601 of
Regulation
S-B
|
Description
|
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
Registrant's Subsidiary and Divisional Management
Incentive Plan, as restated, effective January 2, 2006
, incorporated
by reference to Registrant's Form 10-K for the year ended December 30,
2006
|
|
|
||
10.6
|
Credit
Agreement, dated as of December 13, 2005, between Registrant and Carolina
First Bank, incorporated by reference to Registrant's Form 10-K for
the year ended December 30, 2006
|
|
|
||
10.8
|
Employment
Agreement, dated January 1, 2006, between Registrant and Ronald H. Braam,
incorporated by reference to Registrant's Form 10-K for the year ended
December 30, 2006
|
|
10.9
|
Amendment
1 to the Synalloy Corporation 2005 Stock Awards Plan
|
|
Agreement
between Registrant’s Bristol Metals, L. P. subsidiary and the United
Steelworkers of America Local 4586, dated December 9, 2004, incorporated
by reference to the Form 10-K for the year ended January 1,
2005
|
||
10.11
|
Agreement
between Registrant’s Bristol Metals, L. P. subsidiary and the United
Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting
Industry of the United States and Canada Local Union No. 538, dated
February 16, 2004, incorporated by reference to the Form 10-K for the year
ended December 31, 2005
|
|
21
|
Subsidiaries
of the Registrant, incorporated by reference to the Form 10-K for the year
ended December 30, 2006
|
|
31
|
Rule
13a-14(a)/15d-14(a) Certifications of Chief Executive Officer and Chief
Financial Officer
|
|
Certifications
Pursuant to 18 U.S.C. Section 1350
|
b)
|
any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control
over financial reporting.
|
Date:
|
March
12, 2008
|
/s/
Ronald H. Braam
|
Ronald
H. Braam
|
||
Chief
Executive Officer
|
c)
|
any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control
over financial reporting.
|
Date:
|
March
12, 2008
|
/s/
Gregory M. Bowie
|
Gregory
M. Bowie
|
||
Chief
Financial Officer
|
Date:
|
March 12,
2008
|
/s/ Ronald H.
Braam
|
Ronald
H. Braam
|
||
Chief
Executive Officer
|
||
/s/ Gregory M.
Bowie
|
||
Gregory
M. Bowie
|
||
Chief
Financial Officer
|
D.
|
Sale or
Merger
. Notwithstanding the vesting schedule set forth
in Section 6.A above, 50% of the total number of unvested shares will vest
in the event that there is either (i) the acquisition of more
than fifty percent (50%) of the outstanding voting securities of the
Company or a subsidiary or division of the Company in which the employee
is employed (calculated on a fully diluted basis) by any person during any
consecutive 12-month period of time; or (ii) the sale of more than fifty
percent (50%) in value of the assets of the Company over any consecutive
12-month period of time.
|
|
F.
|
Fair Market
Value
. Upon the vesting of shares pursuant to this stock
award, the Committee shall determine, in good faith and in its best
judgment, the value of each share currently vested, which under no
circumstance shall be less than fair market value. For such
purposes, if the shares are listed on a national securities exchange at
the time of the granting of the stock award, then the fair market value
per share shall be not less than the average of the highest and lowest
selling price on such exchange as of the date that such stock
award is vested, or if there were no sales on said date, then the price
shall not be less than the mean between the bid and the ask price on such
date. If the shares are traded otherwise than on a national
securities exchange at the time of the vesting of the stock award, then
the price per share shall not be less than the mean between the bid and
the asked price on the date of the vesting of the stock award, or if there
is no such bid and asked price on said date, then on the next prior
business day on which there was a bid and asked price. If no
such bid and asked price is available, then the price per share shall be
determined by the Committee.
|