Price Graph
Price
Yield
These terms and conditions govern your use of the website alphaminr.com and its related services.
These Terms and Conditions (“Terms”) are a binding contract between you and Alphaminr, (“Alphaminr”, “we”, “us” and “service”). You must agree to and accept the Terms. These Terms include the provisions in this document as well as those in the Privacy Policy. These terms may be modified at any time.
Your subscription will be on a month to month basis and automatically renew every month. You may terminate your subscription at any time through your account.
We will provide you with advance notice of any change in fees.
You represent that you are of legal age to form a binding contract. You are responsible for any
activity associated with your account. The account can be logged in at only one computer at a
time.
The Services are intended for your own individual use. You shall only use the Services in a
manner that complies with all laws. You may not use any automated software, spider or system to
scrape data from Alphaminr.
Alphaminr is not a financial advisor and does not provide financial advice of any kind. The service is provided “As is”. The materials and information accessible through the Service are solely for informational purposes. While we strive to provide good information and data, we make no guarantee or warranty as to its accuracy.
TO THE EXTENT PERMITTED BY APPLICABLE LAW, UNDER NO CIRCUMSTANCES SHALL ALPHAMINR BE LIABLE TO YOU FOR DAMAGES OF ANY KIND, INCLUDING DAMAGES FOR INVESTMENT LOSSES, LOSS OF DATA, OR ACCURACY OF DATA, OR FOR ANY AMOUNT, IN THE AGGREGATE, IN EXCESS OF THE GREATER OF (1) FIFTY DOLLARS OR (2) THE AMOUNTS PAID BY YOU TO ALPHAMINR IN THE SIX MONTH PERIOD PRECEDING THIS APPLICABLE CLAIM. SOME STATES DO NOT ALLOW THE EXCLUSION OR LIMITATION OF INCIDENTAL OR CONSEQUENTIAL OR CERTAIN OTHER DAMAGES, SO THE ABOVE LIMITATION AND EXCLUSIONS MAY NOT APPLY TO YOU.
If any provision of these Terms is found to be invalid under any applicable law, such provision shall not affect the validity or enforceability of the remaining provisions herein.
This privacy policy describes how we (“Alphaminr”) collect, use, share and protect your personal information when we provide our service (“Service”). This Privacy Policy explains how information is collected about you either directly or indirectly. By using our service, you acknowledge the terms of this Privacy Notice. If you do not agree to the terms of this Privacy Policy, please do not use our Service. You should contact us if you have questions about it. We may modify this Privacy Policy periodically.
When you register for our Service, we collect information from you such as your name, email address and credit card information.
Like many other websites we use “cookies”, which are small text files that are stored on your computer or other device that record your preferences and actions, including how you use the website. You can set your browser or device to refuse all cookies or to alert you when a cookie is being sent. If you delete your cookies, if you opt-out from cookies, some Services may not function properly. We collect information when you use our Service. This includes which pages you visit.
We use Google Analytics and we use Stripe for payment processing. We will not share the information we collect with third parties for promotional purposes. We may share personal information with law enforcement as required or permitted by law.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Minnesota | 41-0285640 | |||
| (State of incorporation) | (I.R.S. Employer Identification Number) |
| 88 - 11 th Avenue N.E. | ||||
| Minneapolis, Minnesota | 55413 | |||
| (Address of principal executive offices) | (Zip Code) | |||
|
Yes
|
X | No | ||||
|
|
|
Yes
|
No | |||||
|
|
|
Large Accelerated Filer
|
X | Accelerated Filer | ||||
|
|
||||||
|
Non-accelerated Filer
|
Smaller reporting company | |||||
|
|
|
Yes
|
No | X | ||||
|
|
| Page Number | ||||
|
PART I
FINANCIAL INFORMATION
|
||||
|
Item 1.
Financial Statements
|
||||
|
|
||||
|
Consolidated Statements of Earnings
|
3 | |||
|
Consolidated Balance Sheets
|
4 | |||
|
Consolidated Statements of Cash Flows
|
5 | |||
|
Notes to Consolidated Financial Statements
|
6 | |||
|
|
||||
|
Item 2.
Management’s Discussion and Analysis
of Financial Condition and Results of Operations
|
13 | |||
|
|
||||
|
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
|
18 | |||
|
|
||||
|
Item 4.
Controls and Procedures
|
18 | |||
|
|
||||
|
|
||||
|
|
||||
|
PART II
OTHER INFORMATION
|
||||
|
|
||||
|
Item 1A.
Risk Factors
|
19 | |||
|
|
||||
|
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
|
19 | |||
|
|
||||
|
Item 6.
Exhibits
|
20 | |||
|
|
||||
|
SIGNATURES
|
||||
|
|
||||
|
EXHIBITS
|
||||
2
| Thirteen Weeks Ended | ||||||||
| March 26, | March 27, | |||||||
| 2010 | 2009 | |||||||
|
|
||||||||
|
Net Sales
|
$ | 164,721 | $ | 137,880 | ||||
|
|
||||||||
|
Cost of products sold
|
75,426 | 73,552 | ||||||
|
|
||||||||
|
|
||||||||
|
Gross Profit
|
89,295 | 64,328 | ||||||
|
|
||||||||
|
Product development
|
9,474 | 10,051 | ||||||
|
Selling, marketing and distribution
|
29,160 | 31,933 | ||||||
|
General and administrative
|
17,955 | 16,215 | ||||||
|
|
||||||||
|
|
||||||||
|
Operating Earnings
|
32,706 | 6,129 | ||||||
|
|
||||||||
|
Interest expense
|
1,080 | 1,366 | ||||||
|
Other expense, net
|
161 | 595 | ||||||
|
|
||||||||
|
|
||||||||
|
Earnings Before Income Taxes
|
31,465 | 4,168 | ||||||
|
|
||||||||
|
Income taxes
|
10,900 | 1,400 | ||||||
|
|
||||||||
|
|
||||||||
|
Net Earnings
|
$ | 20,565 | $ | 2,768 | ||||
|
|
||||||||
|
|
||||||||
|
Basic Net Earnings
per Common Share |
$ | 0.34 | $ | 0.05 | ||||
|
|
||||||||
|
Diluted Net Earnings
per Common Share |
$ | 0.34 | $ | 0.05 | ||||
|
|
||||||||
|
Cash Dividends Declared
per Common Share |
$ | 0.20 | $ | 0.19 | ||||
3
| March 26, | December 25, | |||||||
| 2010 | 2009 | |||||||
|
ASSETS
|
||||||||
|
Current Assets
|
||||||||
|
Cash and cash equivalents
|
$ | 11,633 | $ | 5,412 | ||||
|
Accounts receivable, less allowances of $7,200 and $6,500
|
119,109 | 100,824 | ||||||
|
Inventories
|
66,410 | 58,658 | ||||||
|
Deferred income taxes
|
21,123 | 20,380 | ||||||
|
Other current assets
|
3,874 | 3,719 | ||||||
|
|
||||||||
|
Total current assets
|
222,149 | 188,993 | ||||||
|
Property, Plant and Equipment
|
||||||||
|
Cost
|
335,820 | 334,440 | ||||||
|
Accumulated depreciation
|
(199,670 | ) | (195,387 | ) | ||||
|
|
||||||||
|
Property, plant and equipment, net
|
136,150 | 139,053 | ||||||
|
Goodwill
|
91,740 | 91,740 | ||||||
|
Other Intangible Assets, net
|
37,183 | 40,170 | ||||||
|
Deferred Income Taxes
|
10,014 | 8,372 | ||||||
|
Other Assets
|
8,047 | 8,106 | ||||||
|
|
||||||||
|
Total Assets
|
$ | 505,283 | $ | 476,434 | ||||
|
|
||||||||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
|
Current Liabilities
|
||||||||
|
Notes payable to banks
|
$ | 14,051 | $ | 12,028 | ||||
|
Trade accounts payable
|
24,021 | 17,983 | ||||||
|
Salaries and incentives
|
15,594 | 14,428 | ||||||
|
Dividends payable
|
12,025 | 12,003 | ||||||
|
Other current liabilities
|
51,697 | 47,373 | ||||||
|
|
||||||||
|
Total current liabilities
|
117,388 | 103,815 | ||||||
|
Long-term debt
|
80,000 | 86,260 | ||||||
|
Retirement Benefits and Deferred Compensation
|
74,391 | 73,705 | ||||||
|
Uncertain Tax Positions
|
3,000 | 3,000 | ||||||
|
Shareholders’ Equity
|
||||||||
|
Common stock
|
60,592 | 59,999 | ||||||
|
Additional paid-in-capital
|
200,653 | 190,261 | ||||||
|
Retained earnings
|
19,618 | 11,121 | ||||||
|
Accumulated other comprehensive income (loss)
|
(50,359 | ) | (51,727 | ) | ||||
|
|
||||||||
|
Total shareholders’ equity
|
230,504 | 209,654 | ||||||
|
|
||||||||
|
Total Liabilities and Shareholders’ Equity
|
$ | 505,283 | $ | 476,434 | ||||
|
|
||||||||
4
| Thirteen Weeks Ended | ||||||||
| March 26, | March 27, | |||||||
| 2010 | 2009 | |||||||
|
Cash Flows From Operating Activities
|
||||||||
|
Net Earnings
|
$ | 20,565 | $ | 2,768 | ||||
|
Adjustments to reconcile net earnings to
net cash provided by operating activities: |
||||||||
|
Depreciation and amortization
|
8,578 | 8,475 | ||||||
|
Deferred income taxes
|
(3,254 | ) | (52 | ) | ||||
|
Share-based compensation
|
2,108 | 2,417 | ||||||
|
Excess tax benefit related to share-based
payment arrangements |
(700 | ) | (200 | ) | ||||
|
Change in
|
||||||||
|
Accounts receivable
|
(19,601 | ) | 18,588 | |||||
|
Inventories
|
(7,849 | ) | 5,525 | |||||
|
Trade accounts payable
|
6,088 | (4,044 | ) | |||||
|
Salaries and incentives
|
1,333 | (4,444 | ) | |||||
|
Retirement benefits and deferred compensation
|
2,714 | 3,602 | ||||||
|
Other accrued liabilities
|
6,153 | (5,692 | ) | |||||
|
Other
|
(94 | ) | 758 | |||||
|
|
||||||||
|
Net cash provided by operating activities
|
16,041 | 27,701 | ||||||
|
|
||||||||
|
Cash Flows From Investing Activities
|
||||||||
|
Property, plant and equipment additions
|
(2,847 | ) | (5,732 | ) | ||||
|
Proceeds from sale of property, plant and equipment
|
57 | 567 | ||||||
|
Capitalized software and other intangible asset additions
|
(125 | ) | (46 | ) | ||||
|
|
||||||||
|
Net cash used in investing activities
|
(2,915 | ) | (5,211 | ) | ||||
|
|
||||||||
|
Cash Flows From Financing Activities:
|
||||||||
|
Net borrowings (payments) on short-term lines of credit
|
2,891 | (995 | ) | |||||
|
Borrowings on long-term line of credit
|
— | 34,211 | ||||||
|
Payments on long-term line of credit
|
(6,260 | ) | (47,401 | ) | ||||
|
Excess tax benefit related to share-based
payment arrangements |
700 | 200 | ||||||
|
Common stock issued
|
7,984 | 4,949 | ||||||
|
Common stock retired
|
(52 | ) | — | |||||
|
Cash dividends paid
|
(12,002 | ) | (11,308 | ) | ||||
|
|
||||||||
|
Net cash provided by (used in) financing activities
|
(6,739 | ) | (20,344 | ) | ||||
|
|
||||||||
|
Effect of exchange rate changes on cash
|
(166 | ) | 534 | |||||
|
|
||||||||
|
Net increase (decrease) in cash and cash equivalents
|
6,221 | 2,680 | ||||||
|
Cash and cash equivalents:
|
||||||||
|
Beginning of year
|
5,412 | 12,119 | ||||||
|
|
||||||||
|
End of period
|
$ | 11,633 | $ | 14,799 | ||||
|
|
||||||||
5
| 1. | The consolidated balance sheet of Graco Inc. and Subsidiaries (the Company) as of March 26, 2010 and the related statements of earnings for the thirteen weeks ended March 26, 2010 and March 27, 2009, and cash flows for the thirteen weeks ended March 26, 2010 and March 27, 2009 have been prepared by the Company and have not been audited. | |
| In the opinion of management, these consolidated financial statements reflect all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the financial position of Graco Inc. and Subsidiaries as of March 26, 2010, and the results of operations and cash flows for all periods presented. |
| Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. Therefore, these statements should be read in conjunction with the financial statements and notes thereto included in the Company’s 2009 Annual Report on Form 10-K. |
| The results of operations for interim periods are not necessarily indicative of results that will be realized for the full fiscal year. |
| 2. |
The following table sets forth the computation of basic and diluted earnings per
share
(in thousands, except per share amounts): |
| Thirteen Weeks Ended | ||||||||
| March 26, | March 27, | |||||||
| 2010 | 2009 | |||||||
|
|
||||||||
|
Net earnings available to
common shareholders |
$ | 20,565 | $ | 2,768 | ||||
|
|
||||||||
|
Weighted average shares
outstanding for basic earnings per share |
60,206 | 59,638 | ||||||
|
|
||||||||
|
Dilutive effect of stock
options computed using the treasury stock method and the average market price |
507 | 265 | ||||||
|
|
||||||||
|
Weighted average shares
outstanding for diluted earnings per share |
60,713 | 59,903 | ||||||
|
|
||||||||
|
Basic earnings per share
|
$ | 0.34 | $ | 0.05 | ||||
|
|
||||||||
|
Diluted earnings per share
|
$ | 0.34 | $ | 0.05 | ||||
6
| Stock options to purchase 3,103,000 and 4,034,000 shares were not included in the 2010 and 2009 computations of diluted earnings per share, respectively, because they would have been anti-dilutive. |
| 3. | Information on option shares outstanding and option activity for the thirteen weeks ended March 26, 2010 is shown below (in thousands, except per share amounts): |
| Weighted | Weighted | |||||||||||||||
| Average | Average | |||||||||||||||
| Option | Exercise | Options | Exercise | |||||||||||||
| Shares | Price | Exercisable | Price | |||||||||||||
|
|
||||||||||||||||
|
Outstanding, December 25, 2009
|
4,813 | $ | 28.98 | 2,445 | $ | 28.38 | ||||||||||
|
Granted
|
733 | 26.97 | ||||||||||||||
|
Exercised
|
(156 | ) | 10.41 | |||||||||||||
|
Canceled
|
(13 | ) | 34.94 | |||||||||||||
|
|
||||||||||||||||
|
Outstanding, March 26, 2010
|
5,377 | $ | 29.23 | 2,889 | $ | 29.85 | ||||||||||
|
|
||||||||||||||||
| The Company recognized year-to-date share-based compensation of $2.1 million in 2010 and $2.4 million in 2009. As of March 26, 2010, there was $10.2 million of unrecognized compensation cost related to unvested options, expected to be recognized over a weighted average period of 2.4 years. |
| The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions and results: |
| Thirteen Weeks Ended | ||||||||
| March 26, | March 27, | |||||||
| 2010 | 2009 | |||||||
|
Expected life in years
|
6.0 | 6.0 | ||||||
|
Interest rate
|
2.7 | % | 2.1 | % | ||||
|
Volatility
|
33.8 | % | 29.9 | % | ||||
|
Dividend yield
|
3.0 | % | 3.7 | % | ||||
|
Weighted average fair value per share
|
$ | 7.16 | $ | 4.25 | ||||
| Under the Company’s Employee Stock Purchase Plan, the Company issued 436,000 shares in 2010 and 312,000 shares in 2009. The fair value of the employees’ purchase rights under this Plan was estimated on the date of grant. The benefit of the 15 percent discount from the lesser of the fair market value per common share on the first day and the last day of the plan year was added to the fair value of the employees’ purchase rights determined using the Black-Scholes option-pricing model with the following assumptions and results: |
7
| Thirteen Weeks Ended | ||||||||
| March 26, | March 27, | |||||||
| 2010 | 2009 | |||||||
|
Expected life in years
|
1.0 | 1.0 | ||||||
|
Interest rate
|
0.3 | % | 0.7 | % | ||||
|
Volatility
|
47.8 | % | 51.5 | % | ||||
|
Dividend yield
|
2.9 | % | 4.5 | % | ||||
|
Weighted average fair value per share
|
$ | 9.01 | $ | 5.60 | ||||
| 4. | The components of net periodic benefit cost (credit) for retirement benefit plans were as follows (in thousands): |
| Thirteen Weeks Ended | ||||||||
| March 26, | March 27, | |||||||
| 2010 | 2009 | |||||||
|
Pension Benefits
|
||||||||
|
Service cost
|
$ | 1,241 | $ | 1,279 | ||||
|
Interest cost
|
3,277 | 3,220 | ||||||
|
Expected return on assets
|
(3,475 | ) | (2,700 | ) | ||||
|
Amortization and other
|
1,504 | 2,414 | ||||||
|
|
||||||||
|
Net periodic benefit cost (credit)
|
$ | 2,547 | $ | 4,213 | ||||
|
|
||||||||
|
|
||||||||
|
Postretirement Medical
|
||||||||
|
Service cost
|
$ | 125 | $ | 150 | ||||
|
Interest cost
|
325 | 350 | ||||||
|
|
||||||||
|
Net periodic benefit cost (credit)
|
$ | 450 | $ | 500 | ||||
|
|
||||||||
| 5. | Total comprehensive income was as follows (in thousands): |
| Thirteen Weeks Ended | ||||||||
| March 26, | March 27, | |||||||
| 2010 | 2009 | |||||||
|
|
||||||||
|
Net earnings
|
$ | 20,565 | $ | 2,768 | ||||
|
Cumulative translation
adjustment |
— | 234 | ||||||
|
Pension and postretirement
medical liability adjustment |
1,468 | 2,329 | ||||||
|
Gain (loss) on interest
rate hedge contracts |
705 | (73 | ) | |||||
|
|
||||||||
|
Income taxes
|
(805 | ) | (836 | ) | ||||
|
|
||||||||
|
|
||||||||
|
Comprehensive income
|
$ | 21,933 | $ | 4,422 | ||||
|
|
||||||||
8
| Components of accumulated other comprehensive income (loss) were (in thousands): |
| March 26, | December 25, | |||||||
| 2010 | 2009 | |||||||
|
|
||||||||
|
Pension and postretirement medical
liability adjustment
|
$ | (47,634 | ) | $ | (48,560 | ) | ||
|
Gain (loss) on interest rate hedge contracts
|
(1,902 | ) | (2,344 | ) | ||||
|
Cumulative translation adjustment
|
(823 | ) | (823 | ) | ||||
|
|
||||||||
|
Total
|
$ | (50,359 | ) | $ | (51,727 | ) | ||
|
|
||||||||
| 6. | The Company has three reportable segments: Industrial, Contractor and Lubrication. The Company does not track assets by segment. Sales and operating earnings by segment for the thirteen weeks ended March 26, 2010 and March 27, 2009 were as follows (in thousands): |
| Thirteen Weeks Ended | ||||||||
| March 26, | March 27, | |||||||
| 2010 | 2009 | |||||||
|
Net Sales
|
||||||||
|
Industrial
|
$ | 96,792 | $ | 75,232 | ||||
|
Contractor
|
50,797 | 47,448 | ||||||
|
Lubrication
|
17,132 | 15,200 | ||||||
|
|
||||||||
|
Total
|
$ | 164,721 | $ | 137,880 | ||||
|
|
||||||||
|
Operating Earnings
|
||||||||
|
Industrial
|
$ | 30,474 | $ | 11,495 | ||||
|
Contractor
|
4,883 | 1,239 | ||||||
|
Lubrication
|
1,707 | (1,436 | ) | |||||
|
Unallocated
corporate (expense)
|
(4,358 | ) | (5,169 | ) | ||||
|
|
||||||||
|
Total
|
$ | 32,706 | $ | 6,129 | ||||
|
|
||||||||
| 7. | Major components of inventories were as follows (in thousands): |
| March 26, | December 25, | |||||||
| 2010 | 2009 | |||||||
|
|
||||||||
|
Finished products and components
|
$ | 40,353 | $ | 36,665 | ||||
|
Products and components in various
stages of completion |
24,087 | 22,646 | ||||||
|
Raw materials and purchased components
|
34,773 | 31,826 | ||||||
|
|
||||||||
|
|
99,213 | 91,137 | ||||||
|
Reduction to LIFO cost
|
(32,803 | ) | (32,479 | ) | ||||
|
|
||||||||
|
Total
|
$ | 66,410 | $ | 58,658 | ||||
|
|
||||||||
9
| 8. | Information related to other intangible assets follows (dollars in thousands): |
| Estimated | Foreign | |||||||||||||||||
| Life | Original | Accumulated | Currency | Book | ||||||||||||||
| (years) | Cost | Amortization | Translation | Value | ||||||||||||||
|
March 26, 2010
|
||||||||||||||||||
|
Customer relationships
|
3 - 8 | $ | 41,075 | $ | (20,201 | ) | $ | (181 | ) | $ | 20,693 | |||||||
|
Patents, proprietary technology
and product documentation
|
3 - 10 | 21,072 | (12,751 | ) | (85 | ) | 8,236 | |||||||||||
|
Trademarks, trade names
and other |
3 - 10 | 8,154 | (3,080 | ) | — | 5,074 | ||||||||||||
|
|
||||||||||||||||||
|
|
||||||||||||||||||
|
|
70,301 | (36,032 | ) | (266 | ) | 34,003 | ||||||||||||
|
Not Subject to Amortization:
|
||||||||||||||||||
|
Brand names
|
3,180 | — | — | 3,180 | ||||||||||||||
|
|
||||||||||||||||||
|
|
||||||||||||||||||
|
Total
|
$ | 73,481 | $ | (36,032 | ) | $ | (266 | ) | $ | 37,183 | ||||||||
|
|
||||||||||||||||||
|
|
||||||||||||||||||
|
December 25, 2009
|
||||||||||||||||||
|
Customer relationships
|
3 - 8 | $ | 41,075 | $ | (18,655 | ) | $ | (181 | ) | $ | 22,239 | |||||||
|
Patents, proprietary technology
and product documentation
|
3 - 10 | 22,862 | (13,708 | ) | (87 | ) | 9,067 | |||||||||||
|
Trademarks, trade names
and other |
3 - 10 | 8,154 | (2,470 | ) | — | 5,684 | ||||||||||||
|
|
||||||||||||||||||
|
|
||||||||||||||||||
|
|
72,091 | (34,833 | ) | (268 | ) | 36,990 | ||||||||||||
|
Not Subject to Amortization:
|
||||||||||||||||||
|
Brand names
|
3,180 | — | — | 3,180 | ||||||||||||||
|
|
||||||||||||||||||
|
|
||||||||||||||||||
|
Total
|
$ | 75,271 | $ | (34,833 | ) | $ | (268 | ) | $ | 40,170 | ||||||||
|
|
||||||||||||||||||
| Amortization of intangibles was $3.0 million in the first quarter of 2010. Estimated annual amortization expense is as follows: $10.9 million in 2010, $10.7 million in 2011, $9.5 million in 2012, $4.3 million in 2013, $0.9 million in 2014 and $0.7 million thereafter. |
10
| 9. | Components of other current liabilities were (in thousands): |
| March 26, | December 25, | |||||||
| 2010 | 2009 | |||||||
|
|
||||||||
|
Accrued self-insurance retentions
|
$ | 7,793 | $ | 7,785 | ||||
|
Accrued warranty and service liabilities
|
7,325 | 7,437 | ||||||
|
Accrued trade promotions
|
2,745 | 2,953 | ||||||
|
Payable for employee stock purchases
|
718 | 5,115 | ||||||
|
Income taxes payable
|
11,228 | 1,550 | ||||||
|
Other
|
21,888 | 22,533 | ||||||
|
|
||||||||
|
Total other current liabilities
|
$ | 51,697 | $ | 47,373 | ||||
|
|
||||||||
| Thirteen | ||||||||
| Weeks Ended | Year Ended | |||||||
| March 26, | December 25, | |||||||
| 2010 | 2009 | |||||||
|
|
||||||||
|
Balance, beginning of year
|
$ | 7,437 | $ | 8,033 | ||||
|
Charged to expense
|
880 | 4,548 | ||||||
|
Margin on parts sales reversed
|
746 | 2,876 | ||||||
|
Reductions for claims settled
|
(1,738 | ) | (8,020 | ) | ||||
|
|
||||||||
|
Balance, end of period
|
$ | 7,325 | $ | 7,437 | ||||
|
|
||||||||
| 10. | The Company accounts for all derivatives, including those embedded in other contracts, as either assets or liabilities and measures those financial instruments at fair value. The accounting for changes in the fair value of derivatives depends on their intended use and designation. | |
| As part of its risk management program, the Company may periodically use forward exchange contracts and interest rate swaps to manage known market exposures. Terms of derivative instruments are structured to match the terms of the risk being managed and are generally held to maturity. The Company does not hold or issue derivative financial instruments for trading purposes. All other contracts that contain provisions meeting the definition of a derivative also meet the requirements of, and have been designated as, normal purchases or sales. The Company’s policy is to not enter into contracts with terms that cannot be designated as normal purchases or sales. | ||
| In 2007, the Company entered into interest rate swap contracts that effectively fix the rates paid on a total of $80 million of variable rate borrowings. One contract fixed the rate on $40 million of borrowings at 4.7 percent plus the applicable spread (depending on cash flow leverage ratio) until December 2010. The second contract fixed an |
11
| Balance Sheet | March 26, | December 25, | ||||||||
| Classification | 2010 | 2009 | ||||||||
|
Gain (loss) on interest
rate hedge contracts |
Other current liabilities | $ | (3,017) | $ | (3,722) | |||||
|
|
||||||||||
|
|
||||||||||
|
Gain (loss) on foreign
currency forward contracts |
||||||||||
|
Gains
|
$ | 130 | $ | 207 | ||||||
|
Losses
|
(188) | (249) | ||||||||
|
|
||||||||||
|
Net
|
Other current liabilities | $ | (58) | $ | (42) | |||||
|
|
||||||||||
12
| Item 2. | GRACO INC. AND SUBSIDIARIES | |||
| MANAGEMENT’S DISCUSSION AND ANALYSIS OF | ||||
| FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
| Thirteen Weeks Ended | ||||||||||||
| March 26, | March 27, | % | ||||||||||
| 2010 | 2009 | Change | ||||||||||
|
|
||||||||||||
|
Net Sales
|
$ | 164.7 | $ | 137.9 | 19% | |||||||
|
Net Earnings
|
$ | 20.6 | $ | 2.8 | 640% | |||||||
|
Diluted Net Earnings
per Common Share |
$ | 0.34 | $ | 0.05 | 580% | |||||||
13
| Thirteen Weeks Ended | ||||||||
| March 26, | March 27, | |||||||
| 2010 | 2009 | |||||||
|
|
||||||||
|
Americas
1
|
$ | 86.7 | $ | 80.2 | ||||
|
Europe
2
|
41.8 | 35.8 | ||||||
|
Asia Pacific
|
36.2 | 21.9 | ||||||
|
|
||||||||
|
Consolidated
|
$ | 164.7 | $ | 137.9 | ||||
|
|
||||||||
14
| Thirteen Weeks Ended | ||||||||
| March 26, | March 27, | |||||||
| 2010 | 2009 | |||||||
|
Net sales (in millions)
|
||||||||
|
Americas
|
$ | 41.9 | $ | 35.8 | ||||
|
Europe
|
27.9 | 23.8 | ||||||
|
Asia Pacific
|
27.0 | 15.6 | ||||||
|
|
||||||||
|
Total
|
$ | 96.8 | $ | 75.2 | ||||
|
|
||||||||
|
|
||||||||
|
Operating earnings as a
percentage of net sales |
31 % | 15 % | ||||||
|
|
||||||||
| Thirteen Weeks Ended | ||||||||
| March 26, | March 27, | |||||||
| 2010 | 2009 | |||||||
|
Net sales (in millions)
|
||||||||
|
Americas
|
$ | 31.9 | $ | 31.7 | ||||
|
Europe
|
12.6 | 10.9 | ||||||
|
Asia Pacific
|
6.3 | 4.8 | ||||||
|
|
||||||||
|
Total
|
$ | 50.8 | $ | 47.4 | ||||
|
|
||||||||
|
|
||||||||
|
Operating earnings as a
percentage of net sales |
10 % | 3 % | ||||||
|
|
||||||||
15
| Thirteen Weeks Ended | ||||||||
| March 26, | March 27, | |||||||
| 2010 | 2009 | |||||||
|
Net sales (in millions)
|
||||||||
|
Americas
|
$ | 12.8 | $ | 12.6 | ||||
|
Europe
|
1.4 | 1.1 | ||||||
|
Asia Pacific
|
2.9 | 1.5 | ||||||
|
|
||||||||
|
Total
|
$ | 17.1 | $ | 15.2 | ||||
|
|
||||||||
|
|
||||||||
|
Operating earnings as a
percentage of net sales |
10 % | (9)% | ||||||
|
|
||||||||
16
17
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
| Item 4. | Controls and Procedures |
18
|
|
OTHER INFORMATION |
| Item 1A. | Risk Factors |
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
| Maximum | ||||||||||||||||
| Total | Number of | |||||||||||||||
| Number | Shares that | |||||||||||||||
| of Shares | May Yet Be | |||||||||||||||
| Purchased | Purchased | |||||||||||||||
| as Part of | Under the | |||||||||||||||
| Total | Average | Publicly | Plans or | |||||||||||||
| Number | Price | Announced | Programs | |||||||||||||
| of Shares | Paid per | Plans or | (at end of | |||||||||||||
| Period | Purchased | Share | Programs | period) | ||||||||||||
|
|
||||||||||||||||
|
Dec 26, 2009 – Jan
22, 2010
|
- | $ | - | - | 6,000,000 | |||||||||||
|
|
||||||||||||||||
|
Jan 23, 2010 – Feb
19, 2010
|
1,868 | $ | 27.58 | - | 6,000,000 | |||||||||||
|
|
||||||||||||||||
|
Feb 20, 2010 – Mar
26, 2010
|
- | $ | - | - | 6,000,000 | |||||||||||
19
| Item 6. | Exhibits |
| 4.1 | Rights Agreement, dated as of February 12, 2010, between the Company and Wells Fargo Bank, N.A., as Rights Agent (incorporated by reference to Exhibit 1 to the Company’s Registration Statement on Form 8-A filed on February 16, 2010). | ||
| 10.1 | Executive Officer Compensation Recoupment Policy adopted by the Management Organization and Compensation Committee of the Graco Inc. Board of Directors on February 12, 2010. | ||
| 31.1 | Certification of President and Chief Executive Officer pursuant to Rule 13a-14(a). | ||
| 31.2 | Certification of Chief Financial Officer and Treasurer pursuant to rule 13a-14(a). | ||
| 32 |
Certification of President and Chief
Executive Officer, Chief Financial Officer and
Treasurer, and Vice President and Controller pursuant to Section 1350 of Title 18, U.S.C. |
||
| 99.1 | Press Release, Reporting First Quarter Earnings, dated April 21, 2010. | ||
| 100 | XBRL-Related Documents. |
20
| GRACO INC. | ||||||
|
|
||||||
|
Date:
|
April 21, 2010 | By: | /s/ Patrick J. McHale | |||
|
|
||||||
|
|
Patrick J. McHale | |||||
|
|
President and Chief Executive Officer | |||||
|
|
(Principal Executive Officer) | |||||
|
|
||||||
|
Date:
|
April 21, 2010 | By: | /s/ James A. Graner | |||
|
|
||||||
|
|
James A. Graner | |||||
|
|
Chief Financial Officer and Treasurer | |||||
|
|
(Principal Financial Officer) | |||||
|
|
||||||
|
Date:
|
April 21, 2010 | By: | /s/ Caroline M. Chambers | |||
|
|
||||||
|
|
Caroline M. Chambers | |||||
|
|
Vice President and Controller | |||||
|
|
(Principal Accounting Officer) | |||||
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
| FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
|---|
| DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
|---|
No information found
No Customers Found
No Suppliers Found
Price
Yield
| Owner | Position | Direct Shares | Indirect Shares |
|---|