Item 1. DESCRIPTION OF BUSINESS
General
Spartech Corporation, together with its subsidiaries ("Spartech" or the "Company"), is in the plastics processing business, with its principal products being:
Rigid sheet & rollstock - which is sold to various manufacturers who use plastic components in their industrial products. The principal uses of the Company's rigid sheet & rollstock are vehicle interiors, signs, spas and showers, food packaging products, burial vault liners, boats and private watercraft, and refrigerators. The Company is the nation's largest custom extruder of rigid plastic sheet & rollstock, operating ten plants (including the two extrusion plants purchased from Pawnee Industries, Inc. on November 1, 1994) nationwide under the name Spartech Plastics.
Specialty alloys, compounds and color concentrates - which are sold principally to manufacturers of specialized footwear, shutters, loose- leaf binders, cosmetic packaging products, and numerous other custom plastic applications. The Company produces and distributes these products from four plants (including the color concentrate plant purchased from Pawnee Industries, Inc. on November 1, 1994) under the names Spartech Compounding and Spartech Vy-Cal Plastics.
The Company's principal executive office is located at 7733 Forsyth Boulevard, Suite 1450, Clayton, Missouri 63105-1817, telephone (314) 721-4242. The Company was incorporated in 1968, succeeding a business which had commenced operations in 1960. In late 1983, the Company began a restructuring program, focusing on its plastics processing business (Alchem Plastics) and disposing of all of its non-plastics operating businesses. Since 1983, the Company has expanded its plastics business primarily through acquisitions. The acquisitions (including the November 1, 1994 acquisition of Pawnee Industries, Inc.'s Extrusion and Color Divisions) that comprise the Company's current operating facilities include:
Date Acquired Business Acquired Principal Product
May 1984 Southwest Converting, Inc. Rigid Sheet & Rollstock January 1986 Franklin/Vy-Cal Plastics Specialty Alloys & Compounds December 1986 Atlas Plastics Corp. Rigid Sheet & Rollstock December 1986 The Resin Exchange, Inc. Specialty Alloys & Compounds July 1987 Eagle Plastics, Inc. Rigid Sheet & Rollstock January 1993 Penda Corporation's Custom Extrusion Division* Rigid Sheet & Rollstock February 1994 Product Components, Inc. Rigid Sheet & Rollstock November 1994 Pawnee Industries, Inc.** Rigid Sheet & Rollstock and Color Concentrates
* Includes Penda's Polystyrene, Print Grade Lithographic Styrene and PET business.
** Includes only Pawnee's Extrusion and Color Divisions.
Rigid Sheet & Rollstock
The Company's rigid sheet & rollstock group (including Pawnee Industries, Inc.'s Extrusion Division, purchased on November 1, 1994) operates under the name Spartech Plastics and is one of the nation's largest custom extruders of rigid sheet & rollstock, manufacturing and marketing both single and multilayer co-extruded plastic sheet for many applications. The group, operating over 60 extrusion lines, annually produces nearly 300 million pounds of rigid sheet & rollstock from several types of resin, including acrylonitrile butadiene styrene ("ABS"), polycarbonate, polypropylene, acrylic, polystyrene, and polyethylene, on a custom basis for end product manufacturers.
Net sales and operating earnings (consisting of earnings before interest, taxes and corporate operations/allocations) of the rigid sheet & rollstock group (prior to the November 1994 acquisition of Pawnee Industries, Inc.) for fiscal years 1994, 1993, and 1992 are as follows:
Fiscal Year (Dollars in millions)
1994 1993 1992
Net Sales $210.0 $150.1 $127.9 Operating Earnings $ 18.8 $ 11.7 $ 8.9
Products - Customers of the rigid sheet & rollstock group use the Company's plastic sheet & rollstock principally in the manufacture of vehicle interiors, signs, spas and showers, food packaging products, burial vault liners, boats and private watercraft, and refrigerators. Most of the Company's customers thermoform, cut, and trim their plastic sheet for various end uses.
Manufacturing and Production - The principal raw materials used in manufacturing rigid sheet & rollstock are plastic resins in pellet form, which are crude oil or natural gas derivatives. The Company extrudes a wide variety of plastic resins, including ABS, polystyrene, poly-carbonate, polyethylene, acrylic, PET, PVC, and polypropylene.
Approximately 45% of the Company's plastic sheet is presently produced in a single layer using conventional extrusion processes. In some cases, the Company will coat this plastic sheet or laminate sheets together in order to achieve performance characteristics desired by customers for particular applications. The Company also produces plastic sheet of up to three layers using a co-extrusion process, combining the materials in distinct layers as it is extruded through the die into a sheet form.
Marketing, Sales and Distribution - The custom sheet extrusion business has generally been a regional business supplying manufacturers within an estimated 750 mile radius of each of the group's ten plants because of shipping costs for rigid plastic material and the need for prompt response to customer requirements and specifications. The outdoor sign and spa businesses, however, are slightly more national in scope. The Company markets its rigid sheet & rollstock products principally through its own sales force, but also uses a limited number of independent sales representatives. The Company generally does not sell products of the rigid sheet & rollstock group under long-term contracts. During fiscal 1994, the rigid sheet & rollstock group sold its products to approximately 1,200 customers.
Specialty Alloys, Compounds and Color Concentrates
The Company's specialty alloys, compounds and color concentrates group (including Pawnee Industries, Inc.'s Color Division, purchased on November 1, 1994) is comprised of Spartech Compounding and Spartech Vy-Cal Plastics, which operates a vinyl calender in the production of finished PVC film.
The specialty alloys, compounds and color concentrates group primarily manufactures plastic alloys, compounds and color concentrates for end product manufacturers. In addition, the Spartech Compounding-Cape Girardeau facility distributes thermoplastic resins purchased from other resin suppliers. The group annually produces/distributes approximately 85 million pounds of thermo- plastic compounds and color concentrates, selling to a number of large and small manufacturers of precision plastic products.
Net sales and operating earnings (consisting of earnings before interest, taxes and corporate operations/allocations) of the specialty alloys & compounds group (prior to the November 1994 acquisition of Pawnee Industries, Inc.) for fiscal years 1994, 1993, and 1992 are as follows:
Fiscal Year (Dollars in millions)
1994 1993 1992
Net Sales $46.6 $39.3 $40.7 Operating Earnings $ 2.8 $ 2.2 $ 3.2
Products - Customers of the specialty alloys, compounds and color concentrates group include both extrusion and injection molding businesses. The group's compounds are principally used in the manufacture of specialized footwear, shutters, loose-leaf binders, cosmetic packaging products, and numerous other custom plastic applications.
The specialty alloys, compounds and color concentrates group (Spartech Compounding) produces a highly diversified range of compounds, including: FDA clear compounds for food, beverage, and medical applications; phosphorescent and fluorescent compounds; PVC combinations incorporating nitrile, elvaloy, and polyurethane for chemical and abrasion resistance for footwear, color compounds and other specialty applications.
Spartech Vy-Cal Plastics operates a vinyl calender, supplying finished PVC film to manufacturers of loose-leaf binders, decorator grade wallcoverings, and packaging products for the medical industry. It operates as a custom specialty house with its own laboratory facility for quality testing of color, thickness, texture, tensile strength, and dimensional stability of its specialized film output.
Manufacturing and Production - The principal raw materials used in manufacturing specialty plastic alloys, compounds and color concentrates are plastic resins in powder and pellet form, primarily PVC and ABS, with colorants, stabilizers, and several other additives used to obtain particular qualities in the plastic resin once it is heated and extruded or molded into end products.
The group has well-equipped laboratory facilities, with experimental extruders and various types of chemical analysis and testing equipment. In addition to compounding technology, the group has developed enhanced capabilities to produce color concentrates and additives.
Marketing, Sales and Distribution - The specialty alloys, compounds and color concentrates group markets most of its products to East Coast and Midwest customers. The group markets its products principally through its own sales force, but also uses independent sales representatives. During fiscal 1994, the specialty alloys & compounds group sold its products to approximately 525 customers.
Raw Materials
The various plastic resins used by the Company in its processing and manufacturing operations are crude oil or natural gas derivatives and are available from a number of domestic and foreign suppliers. Accordingly, the Company's raw materials are only somewhat affected by supply and demand price trends of the petroleum industry; pricing of the resins tends to follow its own supply and demand equation except in periods of anticipated or actual shortages of crude oil or natural gas. The Company is not aware of any trends in the petroleum industry which will significantly affect its sources of raw materials in fiscal 1995.
The Company does business with most of the major resin manufacturers and has enjoyed good relationships with such suppliers over the past several years. The Company has been able to adequately obtain all of its required raw materials to date and expects to be able to continue to satisfy its requirements in fiscal 1995 and beyond.
Seasonality
The Company's sales volume has somewhat of a seasonal pattern, with the period February through October of each year being the most active time. Fewer orders are placed and less manufacturing activity occurs during the period November through January. This seasonal variation tends to track the manufacturing activities of the Company's various customers in each region.
Competition
The rigid sheet & rollstock and compounding industries are each highly competitive. Since the Company manufactures a wide variety of products, it competes in different areas with many other companies, some of which are much larger than the Company and have more extensive production facilities, larger sales and marketing staffs, and substantially greater financial resources than the Company.
Important competitive factors in each of the Company's businesses include (1) the ability to manufacture consistently to required quality levels, (2) provide excellent customer service, including timely deliveries, (3) skill in raw material purchasing, and (4) production line optimization to make the products profitably.
The Company is an intermediate processor of rigid sheet & rollstock which is sold to customers who shape it for their end use with thermoforming equipment. Several of these customers have, or upon expansion may acquire, extrusion machinery. Moreover, some customers are large enough to justify building their own molds and shifting from thermoforming to an injection molding process. Injection molded products are competitive whenever large quantities are produced or fine detailing or contouring is required on the end product, which is more difficult to obtain through thermoforming. However, thermoforming techniques have been improved in recent years and are generally less expensive than other manufacturing methods due to equipment costs and other associated start-up expenses. In addition, several customers of the Company's specialty alloys, compounds and color concentrates division have the capability to formulate their own alloys, compounds and color concentrates. However, the Company expects to benefit from a growing trend of out-sourcing of specialized semifinished materials by many manufacturers.
Backlog
The Company estimates that the total dollar volume of its backlog as of November 30, 1994, was approximately $27.9 million, which represents approximately four weeks of production for both the rigid sheet & rollstock and specialty alloys, compounds and color concentrates groups. The backlog at the same time in 1993 was approximately $14.7 million.
Employees
The Company's total employment (including personnel associated with the Pawnee Industries, Inc. November 1, 1994 acquisition) approximates 1,200. There are 930 production personnel at the Company's 14 plants, 32% of whom are union employees covered by several collective bargaining agreements. There have been no strikes in the past three years, except for a five week stoppage at the Spartech Vy-Cal plant in Pennsylvania during fiscal 1992, in connection with the negotiation of a new contract. Management personnel total approximately 270 supervisory/clerical employees, none of whom are unionized. The Company believes that all of its employee and union relations are satisfactory.
Government Regulation
The Company is subject to various laws governing employee safety and environmental matters. The Company believes it is in material compliance with all such laws and does not anticipate large expenditures in fiscal 1995 to comply with any applicable regulations. The Company is subject to federal, state, and local laws and regulations governing the quantity of certain specified substances that may be emitted into the air, discharged into interstate and intrastate waters, and otherwise disposed of on and off the properties of the Company. The Company has not incurred significant expenditures in order to comply with such laws and regulations, nor does it anticipate continued compliance therewith to materially affect its earnings or competitive position.
Item 2.
Item 2. PROPERTIES
The Company operates in plants and offices aggregating 1,114,000 square feet of space. Approximately 532,000 square feet of plant and office space is leased with the remaining 582,000 square feet owned by the Company. A summary of the Company's principal operating facilities follows:
Size in Square Owned/ Location Description Feet Leased
Rigid Sheet & Rollstock
Arlington, TX Extrusion plant & offices 132,000 Leased Atlanta, GA Extrusion plant & offices 80,000 Leased Cape Girardeau, MO Extrusion plant & offices 100,000 Owned 30,000 Leased Clare, MI Extrusion plant & offices 27,000 Owned La Mirada, CA Extrusion plant & offices 76,000 Leased Mankato, MN Extrusion plant & offices 33,000 Owned 25,000 Leased McMinnville, OR Extrusion plant & offices 40,000 Owned Paulding, OH * Extrusion plant & offices 66,000 Owned 53,000 Leased Richmond, IN Extrusion plant & offices 52,000 Owned 40,000 Leased Wichita, KS * Extrusion plant & offices 65,000 Owned 60,000 Leased
Specialty Alloys, Compounds and Color Concentrates
Cape Girardeau, MO Compounding plant & offices 57,000 Owned 36,000 Leased Conshohocken, PA Calendering plant & offices 50,000 Owned Goddard, KS * Color Conc. plant & offices 33,000 Owned Kearny, NJ Compounding plant & offices 59,000 Owned
* Acquired in November 1994 in connection with Pawnee Industries, Inc. purchase.
In addition, the Company leases office facilities in St. Louis, Missouri, the aggregate square footage of approximately 5,500.
The plants located at the premises listed above are equipped with 62 sheet extrusion lines, 42 supplementary co-extruders, 8 compounding- milling lines, 5 color compounding lines, a calendering line, cutting and grinding machinery, resin storage facilities, warehouse equipment, and quality laboratories at all locations. The Company believes that the present facilities are adequate for the level of business anticipated in fiscal year 1995.
The Company also owns plants and office facilities in Monroe, Louisiana, and Brooklyn, New York, the aggregate square footage of which is approximately 128,000 and 65,000, respectively. The buildings are currently being leased to independent third parties.
Item 3.
Item 3. LEGAL PROCEEDINGS
On June 2, 1992, Mr. Lawrence M. Powers, a former Director and former Chairman of the Board and Chief Executive Officer of the Company, filed a lawsuit in the United States District Court for the Southern District of New York against the Company and certain of its Directors and major shareholders. In the suit, Mr. Powers claims that, by reason of the Company's April 30, 1992, debt-to-equity restructuring, (which he had previously, on April 13, 1992, voted in favor of as a Director) the Company should adjust his existing stock options, provide for the issuance of 167,744 additional shares of common stock to him, and award to him attorney's fees and interest. Mr. Powers seeks judgment against the Company and the other defendants: (1) in excess of $13 million plus punitive damages, (2) requiring the Company to issue him an additional 167,744 shares of common stock, (3) requiring an adjustment increasing his then outstanding options to purchase the Company's common stock from 1,871,201 shares to 4,080,000 shares, and (4) for attorney's fees and interest. In June 1993, in responding to the Company's request for summary judgment, the court ruled the Board of Director's decision to not adjust Mr. Powers' options was "final, binding and conclusive" unless Mr. Powers can establish the Board was not acting independently and that it could not have acted appropriately. Discovery was allowed to continue in the litigation. The Company believes that Mr. Powers' litigation is without merit and is defending against it vigorously.
The Company currently has no litigation with respect to any environmental matters.
Item 4.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters were submitted to a vote of the Company's security holders during the fourth quarter of the fiscal year ended October 29, 1994.
PART II
Item 5.
Item 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
The information entitled "Common Stock" on page 21 of the 1994 Annual Report to Shareholders, attached hereto as Exhibit 13, is incorporated by reference in response to this item.
Item 6.
Item 6. SELECTED FINANCIAL DATA
The information on page 22 of the 1994 Annual Report to Shareholders, attached hereto as Exhibit 13, is incorporated by reference in response to this item.
Item 7.
Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The information on pages 8 and 9 of the 1994 Annual Report to Share-holders, attached hereto as Exhibit 13, is incorporated by reference in response to this item.
Item 8.
Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The information entitled "Quarterly Financial Information" on page 21 of the 1994 Annual Report to Shareholders, attached hereto as Exhibit 13, is incorporated by reference in response to this item.
In addition, the financial statements of the Registrant filed herewith are set forth as Item 14 included in Part IV of this Report.
Item 9.
Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
PART III
Item 10.
Item 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
The information concerning Directors of the Company contained in the section entitled "Election of Directors" of the Definitive Proxy Statement for the 1995 Annual Meeting of Shareholders to be filed with the Commission on or about January 20, 1995, is incorporated herein by reference in response to this item. In addition, the following table sets forth certain information with respect to the Company's executive officers:
Position with the Company Name Age and Date Appointed
Bradley B. Buechler 46 President (April 1987), Chief Executive (October 1991) and Chief Operating (May 1985) Officer, and Director (February 1984)
David B. Mueller 41 Vice President of Finance, Chief Financial Officer (February 1988), Secretary (October 1991), and Director (March 1994)
Daniel J. Yoder 53 Vice President - Engineering and Technology (May 1990)
Mr. Buechler, a CPA, was with Arthur Andersen & Co. before the commencement of his employment with the Company in 1981. Prior to the positions currently held, he was the Company's Corporate Controller and Vice President - - - - - - - Finance from 1981-1984.
Mr. Mueller, a CPA, was previously with Arthur Andersen & Co. for seven years. He most recently was Corporate Controller of Apex Oil Company, a large independent oil company, from 1981 - 1988.
Mr. Yoder was General Manager of the Company's Spartech Plastics Central Region from 1986-1990. From 1983-1986 he was Vice President of Manufacturing for Atlas Plastics, Corp., prior to its acquisition by the Company.
Item 11.
Item 11. EXECUTIVE COMPENSATION
Cash Compensation
The information contained in the sections entitled "Management Remuneration" and "Meetings and Committees of the Board and Remuneration of Directors" of the Definitive Proxy Statement for the 1995 Annual Meeting of Shareholders to be filed with the Commission on or about January 20, 1995 is incorporated herein by reference in response to this item.
Item 12.
Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The information contained in the sections entitled "Security Ownership of Certain Beneficial Owners and Management" of the Definitive Proxy Statement for the 1995 Annual Meeting of Shareholders to be filed with the Commission on or about January 20, 1995 is incorporated herein by reference in response to this item.
Item 13.
Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
The information contained in the section entitled "Election of Directors" and "Management Remuneration" of the Definitive Proxy Statement for the 1995 Annual Meeting of Shareholders to be filed with the Commission on or about January 20, 1995 is incorporated herein by reference in response to this item.
PART IV
Item 14.
Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
The following financial statements, financial statement schedules and exhibits are incorporated by reference from the 1994 Annual Report to Shareholders and/or filed as part of this Form 10-K:
Page Annual Report Form 10-K to Shareholders
Report of Independent Public Accountants 20
Financial Statements
Consolidated Balance Sheet - 10 Consolidated Statement of Operations - 11 Consolidated Statement of Shareholders' Equity - 12 Consolidated Statement of Cash Flows - 13
Notes To Consolidated Financial Statements - 14-19
Financial Statement Schedules
Schedule Number Description
V. Property, Plant and Equipment - VI. Accumulated Depreciation, Depletion - and Amortization of Property, Plant and Equipment
VIII. Valuation and Qualifying Accounts - Exhibits
Exhibits required to be filed by Item 601(a) of Regulation S-K are included as Exhibits to this report as follows:
Exhibit
3* Articles of Incorporation and By-Laws
10(A)** Amended and Restated Employment Agreement dated July 1, 1992, between Bradley B. Buechler and Spartech Corporation
10(B)** Amended and Restated Employment Agreement dated July 1, 1992, between David B. Mueller and Spartech Corporation
10(C)** Amended and Restated Employment Agreement dated June 30, 1992, between Daniel J. Yoder and Spartech Corporation
10(D)*** Spartech Corporation Incentive Stock Option Plan dated July 26, 1991
10(E)*** Spartech Corporation Restricted Stock Option Plan dated July 26, 1991
10(F)**** Asset Purchase and Sale Agreement between Spartech Corporation (Buyer) and Pawnee Industries, Inc. (Seller)
11 Statement re Computation of Per Share Earnings
13 Pages 8-23 of the 1994 Annual Report to Shareholders
22***** Subsidiaries of Registrant
23 Consent of Independent Public Accountants
24 Powers of Attorney
27 Financial Data Schedule
* Filed in response to the Commission's comments concerning the Company's Proxy Statement relating to the Annual Meeting of Shareholders held June 10, 1992, filed with the Commission on May 27, 1992, and incorporated herein by reference.
** Filed as an exhibit to the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 1992, filed with the Commission on January 7, 1993, and incorporated herein by reference.
*** Filed as an exhibit to the Company's annual report on Form 10-K for the fiscal year ended November 2, 1991, filed with the Commission on February 18, 1992, and incorporated herein by reference.
**** Filed as an exhibit to the Company's Form 8-K, dated November 1, 1994, filed with the Commission on November 16, 1994, and incorporated herein by reference.
***** Filed as an exhibit to the Company's annual report on Form 10-K for the fiscal year ended November 3, 1990, filed with the Commission on February 1, 1991, and incorporated herein by reference.
All other financial statements and schedules not listed have been omitted since the required information is included in the consolidated financial statements or the notes thereto, or is not applicable or required.
Reports on Form 8-K
A report on Form 8-K, dealing with the signing of the letter of intent to purchase the assets of the Extrusion and Color Divisions of Pawnee Industries Inc., was filed on September 13, 1994. On November 1, 1994, Spartech Corporation completed the acquisition of Pawnee Industries, Inc.'s Extrusion and Color Divisions and filed, on November 16, 1994, a Report on Form 8-K regarding this acquisition.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Ex change Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
SPARTECH CORPORATION
January 6, 1995 By: /S/ Bradley B. Buechler (Date) Bradley B. Buechler President, Chief Executive and Chief Operating Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Regis trant and in the capacities and on the date indicated.
DATE SIGNATURES TITLE
January 6, 1995 /S/ Bradley B. Buechler President, Chief Executive Bradley B. Buechler and Chief Operating Officer, and Director (Principal Executive Officer)
January 6, 1995 /S/ David B. Mueller Vice President of Finance David B. Mueller and Chief Financial Officer, and Director (Principal Financial and Accounting Officer)
January 6, 1995 /S/ John F. Arning Director John F. Arning*
January 6, 1995 /S/ Thomas L. Cassidy Director Thomas L. Cassidy*
January 6, 1995 /S/ W. R. Clerihue Chairman of the Board and W. R. Clerihue* Director
January 6, 1995 /S/ Francis J. Eaton Director Francis J. Eaton*
January 6, 1995 /S/ Jackson W. Robinson Director Jackson W. Robinson*
January 6, 1995 /S/ Rodney H. Sellers Director Rodney H. Sellers*
* By Bradley B. Buechler as Attorney-in-Fact pursuant to Powers of Attorney executed by the Directors listed above, which Powers of Attorney have been filed with the Securities and Exchange Commission.
/S/ Bradley B. Buechler Bradley B. Buechler As Attorney-in-Fact
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
TO SPARTECH CORPORATION
We have audited in accordance with generally accepted auditing standards, the financial statements included in SPARTECH Corporation's 1994 Annual Report to shareholders incorporated by reference in this Form 10-K, and have issued our report thereon dated December 6, 1994. Our audit was made for the purposes of forming an opinion on those statements taken as a whole. Schedules V, VI and VIII included in this Form 10-K are presented for purposes of complying with the Securities and Exchange Commission's rules and are not part of the basic financial statements. These schedules have been subjected to the auditing procedures applied in our audit of the basic financial statements and, in our opinion, fairly state in all material respects the financial data required to be set forth therein in relation to the basic financial statements taken as a whole.
ARTHUR ANDERSEN LLP
St. Louis, Missouri December 6, 1994
SPARTECH CORPORATION AND SUBSIDIARIES SCHEDULE V - PROPERTY, PLANT AND EQUIPMENT FOR FISCAL YEARS ENDED 1994, 1993 AND 1992 (Dollars in thousands)
BALANCE AT BALANCE AT BEGINNING ADDITIONS RETIREMENTS/ END CLASSIFICATION OF PERIOD AT COST RECLASSIFICATIONS OF PERIOD
October 29, 1994: Land $ 4,307 $ 66 $ (47) $ 4,326 Bldgs. & improvements 12,423 1,464 (121) 13,766 Machinery & equipment 39,175 11,331 (483) 50,023 Furniture & fixtures 2,068 291 (45) 2,314
$ 57,973 $ 13,152 $ (696) $ 70,429
October 30, 1993: Land $ 4,307 $ - $ - $ 4,307 Bldgs. & improvements 12,321 102 - 12,423 Machinery & equipment 35,188 3,890 97 39,175 Furniture & fixtures 2,108 105 (145) 2,068
$ 53,924 $ 4,097 $ (48) $ 57,973
October 31, 1992: Land $ 4,307 $ - $ - $ 4,307 Bldgs. & improvements 12,103 238 (20) 12,321 Machinery & equipment 33,371 1,928 (111) 35,188 Furniture & fixtures 2,196 161 (249) 2,108
$ 51,977 $ 2,327 $ (380) $ 53,924
Fiscal year 1994 additions include the property, plant and equipment acquired from Product Components, Inc. ("ProCom") in February of 1994. Fiscal year 1993 additions include the equipment acquired from Penda Corporation in January of 1993.
SPARTECH CORPORATION AND SUBSIDIARIES SCHEDULE VI - ACCUMULATED DEPRECIATION, DEPLETION AND AMORTIZATION OF PROPERTY, PLANT AND EQUIPMENT FOR FISCAL YEARS ENDED 1994, 1993 AND 1992 (Dollars in thousands)
ADDITIONS AND CHARGES BALANCE AT TO COST BALANCE AT BEGINNING AND RETIREMENTS/ END CLASSIFICATION OF PERIOD EXPENSES RECLASSIFICATIONS OF PERIOD
October 29, 1994: Bldgs. & improvements $ 3,693 $ 766 $ (3) $ 4,456 Machinery & equipment 15,120 2,816 (326) 17,610 Furniture & fixtures 1,523 218 (34) 1,707
$ 20,336 $ 3,800 $ (363) $ 23,773
October 30, 1993: Bldgs. & improvements $ 2,964 $ 727 $ 2 $ 3,693 Machinery & equipment 12,526 2,382 212 15,120 Furniture & fixtures 1,523 235 (235) 1,523
$ 17,013 $ 3,344 $ (21) $ 20,336
October 31, 1992: Bldgs. & improvements $ 2,410 $ 560 $ (6) $ 2,964 Machinery & equipment 10,695 1,879 (48) 12,526 Furniture & fixtures 1,377 367 (221) 1,523
$ 14,482 $ 2,806 $ (275) $ 17,013
SPARTECH CORPORATION AND SUBSIDIARIES SCHEDULE VIII - VALUATION AND QUALIFYING ACCOUNTS FOR FISCAL YEARS ENDED 1994, 1993 AND 1992 (Dollars in thousands)
ADDITIONS AND CHARGES BALANCE AT TO COSTS BALANCE AT BEGINNING AND END DESCRIPTION OF PERIOD EXPENSES WRITE-OFFS OF PERIOD
October 29, 1994: Allowance for Doubtful Accounts $ 1,044 $ 1,477 $ (1,106) $ 1,415
October 30, 1993: Allowance for Doubtful Accounts $ 845 $ 1,027 $ (828) $ 1,044
Reserve for Discontinued Operations $ 497 $ - $ (497) $ -
October 31, 1992: Allowance for Doubtful Accounts $ 788 $ 511 $ (454) $ 845
Reserve for Discontinued Operations $ 9,637 $ - $ (9,140) $ 497
Fiscal year 1994 additions and write-offs include activity relating to the acquisition of Product Components, Inc. ("ProCom") in February of 1994.