Item 1 Business
(a) General Development of Business
Registrant was initially organized as an Illinois corporation on November 28, 1922 under the name of "Elco Tool and Screw Corporation". The Registrant conducted business as an Illinois corporation under that name until June 9, 1969, at which time it changed its state of incorporation from Illinois to Delaware and its name to "Elco Industries, Inc".
In June 1989, the Company and Nagoya Screw Manufacturing Co., Ltd. ("Nagoya") formed a joint venture known as Rocknel Fastener, Inc. ("Rocknel"). Each company has a 50% interest in the venture. Elco and Nagoya have equal representation on the Board of Directors of Rocknel. Rocknel manufactures and sells fasteners to Japanese-owned manufacturers in North America.
In May 1991, the Registrant purchased the busines and certain assets of the Bear-Kat Products division of Key Manufacturing Group, Inc. Bear-Kat Products markets a full line of fasteners and related items to the consumer/do-it-yourself (DIY) market.
(b) Financial Information about Industry Segments
The information called for by Item 1 (b) is hereby incorporated by reference to the "Products and Major Customers" footnote of the Notes to Consolidated Financial Statements (Note 2, pages 30-31) of the Registrant's Annual Report to Stockholders for the year ended June 30, 1994.
(c) Narrative Description of Business
(i) Principal Products
The Registrant is a leading U.S. designer, manufacturer and supplier of specialty metal fasteners and custom-engineered metal and plastic components and products. The Registrant also offers a wide variety of packaged fasteners, fastening-related products and other hardware accessories to the do-it-yourself market. The Registrant's products can be classified in two groups: industrial products and home and construction products.
Industrial products include engineered specialty fasteners and application-specific, cold-formed, precision metal stamped and plastic molded components and assemblies combining the three manufacturing disciplines, which are supplied to a variety of markets including the transportation, electrical and electronics, fabricated metal and other industrial markets. Industrial products are sold primarily to original equipment manufacturers.
Home and construction products include a full line of fasteners, wire and fastening-related products packaged and merchandised for consumer use. This group is also involved in the design, manufacture and marketing of specialty product lines and fastening systems for the non-residential construction industry.
The following table sets forth sales of these product groups for the years indicated:
Registrant sells a portion of its products through its own employee sales organization which is paid on a salary plus commission basis. It also sells a portion of its products through independent manufacturer's representatives who are paid on a commission basis. These organizations are granted territories covering the United States. Each of the Registrant's segments has a separate sales force. The Registrant's relationships with its independent representatives are terminable by either party on short notice.
(ii) Status of Product or Segment
The Registrant does not contemplate the introduction of any new product or industry segment, other than in the ordinary course of manufacturing custom-designed products primarily to customer specifications. The manufacturing of custom-designed products will not require any substantial investment other than those capital expenditures required for modernization of equipment and for increased capacity for products.
(iii) Source and Availability of Raw Materials
The Registrant uses a variety of metals in the manufacture of its products, such as low and medium carbon steel, low alloy steel, stainless steel, aluminum, brass and commercial bronze. The Registrant also uses a variety of plastics for injection molding. The Registrant believes that its sources of supply of these materials are adequate for its needs and that it is not substantially dependent upon any one supplier.
The Registrant purchases most products for DIY consumers from foreign suppliers for resale in the United States. As a manufacturer, the Registrant would not be competitive with foreign manufacturers of standard fasteners sold primarily to consumers. A majority of the imported products are sourced through international vendors and importing companies. These products are imported from a variety of countries, including Taiwan, Korea, India, Japan and several European countries. Taiwan is currently the largest single source country. There are many standard fastener sources throughout the world, and thus the loss of a major vendor of imported products would not have a material, adverse effect on the Registrant.
(iv) Patents, Trademarks, Licenses, Franchises, and Concessions
Registrant owns numerous patents relating to the design and manufacture of its products. Although the Registrant generally seeks to obtain patents where appropriate, it does not consider the success of its business to be dependent on any of its patents or patent applications.
The Registrant is licensed on a non-exclusive basis to manufacture and sell a number of products primarily related to fasteners. These licenses require the payment of royalties based on sales of the licensed product. Sales of licensed products accounted for approximately $32.4 million in sales for the fiscal year ended June 30, 1994. The Registrant considers these licenses to be of importance to its business, and the termination of certain of these licenses would have a material, adverse effect upon the Registrant. These licenses are not terminable by the licensor, except by failure of the Registrant to pay royalties or meet quality standards. The Registrant does not anticipate that any of the license agreements will be terminated in the near future.
The Registrant has a number of registered trademarks, but other than the trademark "Elco", none of these trademarks is considered to be material to the Registrant's sales or revenues.
(v) Seasonal Variations in Business
Sales and revenues of a material portion of the Registrant's business are normally stronger in the second half of the Registrant's fiscal year. Production levels are generally lower during the Registrant's first half of the fiscal year because of customer plant shutdowns due to summer vacations and the number of holidays scheduled during the month of December by both customers and the Registrant.
(vi) Working Capital Practices
The Registrant has not adopted nor does it intend to adopt practices, credit terms, or methods of doing business which will have a material effect on changes in working capital during its fiscal year.
The seasonal changes in sales and revenues explained in paragraph (v) above normally do not place an undue strain on working capital requirements which would require short-term borrowings.
(vii) Dependence Upon Limited Number of Customers
In the fiscal year ended June 30, 1994, a material portion of the Registrant's sales were dependent on Ford Motor Company and General Motors Corp. The Registrant's sales to Ford Motor Company and General Motors Corp. accounted for 18% and 14%, respectively, of total consolidated sales during the fiscal year ended June 30, 1994. To the extent that sales to all or several divisions of Ford or General Motors would be terminated or materially reduced, there would be a material, adverse effect on the Registrant.
(viii) Backlog
The Registrant estimates that the total dollar amount of its backlog of orders believed to be firm as of June 30, 1994, and June 30, 1993, was approximately $52,100,000 and $40,600,000, respectively. The Registrant expects that substantially all of the current backlog will be shipped in the next 12 months. The Registrant does not consider the size of its backlog as of a given date to be significant relative to a forecast of annual sales because most orders are for short-term delivery. Furthermore, orders may be cancelled or delivery delayed by the customer without significant penalty.
(ix) Government Contracts
The Registrant is not dependent upon government contracts for a material portion of its business.
(x) Competitive Conditions
Industrial Products Segment
The metal fastener and component business is highly competitive. Several competitors of the Registrant have greater financial resources and operate more facilities. However, the Registrant believes its knowledge and continued refinement of the cold-forming process, combined with close cooperation with customers' engineers, quality conformance and the capability to supply a wide range of fastener products required by its customers, have established Elco as a leader in the specialized fastener market. The Registrant considers the Camcar Division of Textron, the Shakeproof Division of Illinois Tool Works, SPS Technologies and Federal Screw Works to be among the major competitors of Elco's Industrial Products Group. The metal stamping and plastics parts businesses in which the Registrant is engaged are also highly competitive. There are numerous companies supplying metal stampings and plastic parts to the automotive industry. The Registrant believes that no one supplier is in a dominant position. The Registrant also encounters competition from supplier of fasteners and metal parts made by other processes, such as screw machines and powdered precision forming, as well as other fastening methods such as adhesives, epoxies, clips and plastic parts. Competition in this segment is based on quality, service, price and engineering capability.
Home and Construction Products Segment
The Registrant considers Hillman Fasteners, Crown Bolt and the Bulldog Jordan unit of Newell Co. to be the major copetitors of the home products portion of the Home and Construction Products Group. Competition is primarily based on service, price and merchandising capability. The Registrant believes that the major competitors of the construction products portion of this group include the Buildex and Ramset Divisions of Illinois Tool Works. Competition is based on quality, service, price and engineering capability.
While the Registrant faces potential competition from foreign manufacturers, it does not believe it currently has significant direct foreign competitors in the markets it serves.
(xi) Research and Development
The Registrant spent approximately $2,900,000, $2,300,000 and $2,200,000 on new or existing product development projects during the fiscal years ended June 30, 1994, 1993 and 1992, respectively, none of which was customer sponsored. The Registrant believes that the amounts indicated above are not indicative of the total effort spent on developing new products and production processes, but the Registrant is not able to quantify all production related costs of such activities. Products are generally developed or improved as a result of providing engineering and design services for customer applications.
(xii) Environmental Disclosures
The Registrant believes that it is in compliance with federal, state and local laws and regulations. The Registrant believes that continued compliance will not have a material effect on the Registrant. For the fiscal year ended June 30, 1994, the Registrant spent approximately $230,000 on capital expenditures related to protection of the environment, and anticipates spending a somewhat higher amount in fiscal 1995 for such purposes.
(xiii) Number of Employees
The average number of persons employed by the Registrant during the fiscal year ended June 30, 1994, was approximately 1,971.
(d) Foreign Operations and Export Sales
The Registrant is not engaged in any material operations in foreign countries, nor is any material portion of its sales derived from foreign countries.
Item 2
Item 2 Properties
The Registrant's position as a leading manufacturer of fasteners and other components is due in large part to the efficiency of its manufacturing facilities. Over the years, the Registrant has expanded and modernized its manufacturing plants and has invest substantial sums in order to maintain up-to-date production capacity. The Registrant believes that its facilities both owned and leased, are in excellent condition and are suitable and adequate to meet the desired levels of productive capacity. Although there is minimal idle space, major expansion is not planned for the near future.
Certain information relating to the principal properties of the Registrant is set forth below: Lease Expiration (including Approximate options Primary Area in to renew) Location Segment Function(s) Square Feet or Ownership - - -------- ------- ----------- ----------- ------------
Rockford, Illinois Industrial Corporate offices, 589,000 Owned Products Manufacturing
Rockford, Illinois Industrial Coating, Finishing 125,000 2009 Products and Warehousing
Rockford, Illinois Industrial Manufacturing and 30,000 Owned Products Warehousing
Logansport, Indiana Industrial Manufacturing and 100,000 Owned Products Warehousing
Logansport, Indiana Industrial Coating and 24,000 2007 Products Finishing
Logansport, Indiana Industrial Coating and 40,000 Owned Products Finishing
Mishawaka, Indiana Industrial Manufacturing 132,000 Owned Products
Rockford, Illinois Home and Manufacturing, 51,000 Owned Construction Packaging and Products Warehousing
Rockford, Illinois Home and Packaging and 138,000 2006 Construction Warehousing Products
Goodlettsville, Home and Manufacturing, 71,000 Owned Tennessee Construction Packaging and Products Warehousing
Item 3
Item 3 Legal Proceedings
The Registrant is not a party to any material pending legal proceedings.
Item 4
Item 4 Submission of Matters to a Vote of Security Holders
There were no matters submitted during the fourth quarter of the year ended June 30, 1994, to a vote of security holders, through the solicitation of proxies or otherwise.
EXECUTIVE OFFICERS OF REGISTRANT
The following named officers' terms of office expire on November 4, 1994:
Name Age Position and Business Experience during past five years - - ---- --- -------------------------------------------------------
John C. Lutz 55 President and Chief Executive Officer since June 1993; President, Chief Operating Officer March 1991 - June 1993; Vice President and Division Manager, Barber Colman Co., 1985-1989
August F. DeLuca 50 Vice President-Finance and Chief Financial Officer
Derek M. Hasse 63 Vice President-Administration
Kenneth L. Heal 51 Secretary and Treasurer
Robert H. Rothkopf 49 President of Industrial Products Group since June 1993; Vice President-Marketing and Sales from September 1989 - June 1993; previously served as President of Camcar Division of Textron
James R. Stenberg 50 President of Home and Construction Products Group since June 1993; previously was Group Vice President, Consumer Products Group
There is no family relationship among the above named officers.
PART II
Item 5
Item 5 Market for the Registrant's Common Stock and Related Security Holder Matters*
Item 6
Item 6 Selected Financial Data*
Item 7
Item 7 Management's Discussion and Analysis of Financial Condition and Results of Operations*
*The information called for by Items 5, 6, and 7 is hereby incorporated by reference to the following captions on the pages indicated in the Registrant's Annual Report to Stockholders for the year ended June 30, 1994 and made a part hereof:
Page(s) in Item Caption in Annual Report Annual Report ---- ------------------------ -------------
5 Stock Prices and Other Market Information 42 Long-Term Debt (Note 7, seventh paragraph) 32
6 Eleven-Year Summary of Selected Financial Data 40-41
7 Management's Discussion and Analysis of Financial Condition and Results of Operations 23-26
Item 8
Item 8 Financial Statements and Supplementary Data
The information called for by Item 8 is hereby incorporated by reference to the Registrant's Annual Report to Stockholders for the year ended June 30, 1994 as set forth in the Index to Consolidated Financial Statements and Schedules (see item 14) and made a part hereof.
Item 9
Item 9 Disagreements on Accounting and Financial Disclosure
No Form 8-K was filed within the twenty-four months prior to June 30, 1994, reporting a change of accountants involving a disagreement on any matter of accounting principles or practices or financial statement disclosure.
PART III
Item 10
Item 10 Directors and Executive Officers of the Registrant
Except for the information relating to the executive officers of the Registrant, set forth in Part I of this report, the information called for by Item 10 is hereby incorporated by reference to the captions entitled "Election of Directors" and "Other Information" on pages 4-6 and caption entitled "Section 16 Compliance" on page 14 of the Registrant's Proxy Statement in connection with its Annual Meeting of Stockholders on November 4, 1994, to be filed with the Securities and Exchange Commission within 120 days following the end of the Registrant's fiscal year ended June 30, 1994 and made a part hereof.
Item 11
Item 11 Executive Compensation
The information called for by Item 11 is hereby incorporated by reference to the captions entitled "Compensation of Executive Officers" on pages 10-13 of the Registrant's Proxy Statement in connection with its Annual Meeting of Stockholders on November 4, 1994, to be filed with the Securities and Exchange Commission within 120 days following the end of the Registrant's fical year ended June 30, 1994, and made a part hereof.
Item 12
Item 12 Security Ownership of Certain Beneficial Owners and Management
This information is incorporated by reference to the caption entitled "Security Ownership of Certain Beneficial Owners and Management" on pages 2-4 of the Registrant's Proxy Statement in connection with its Annual Meeting of Stockholders on November 4, 1994, to be filed with the Securities and Exchange Commission within 120 days following the end of the Registrant's fiscal year ended June 30, 1994, and made a part thereof.
Item 13
Item 13 Certain Relationships and Related Transactions
The information called for by Item 13 is hereby incorporated by reference to the captions entitled "Other Information" on pages 6-7 and "Certain Beneficial Owners" on page 3 of the Registrant's Proxy Statement in connection with its Annual Meeting of Stockholders on November 4, 1994, to be filed with the Securities and Exchange Commission within 120 days following the end of the Registrant's fiscal year ended June 30, 1994, and made a part thereof.
PART IV
Item 14
Item 14 Exhibits, Financial Statement Schedules and Reports on Form 8-K
a. Index to Consolidated Financial Statements and Schedules
Reference ------------------------------- Form 10-K Annual Report Annual Report to Stockholders Page Page(s) ------------- --------------
Data incorporated by reference to Registrant's Annual Report to Stockholders for the year ended June 30, 1994:
Consolidated Balance Sheets at June 30, 1994 and 1993 27
Statements of Consolidated Income for the years ended June 30, 1994, 1993 and 1992 28
Statements of Consolidated Stockholders' Equity for the years ended June 30, 1994, 1993 and 1992 28
Statements of Consolidated Cash Flows for the years ended June 30, 1994, 1993 and 1992 29
Notes to Consolidated Financial Statements 30-36
Report of Independent Accountants 38
Report of Independent Accountants S-1
Financial Statement Schedules:
V. Property, Plant and Equipment S-2
VI. Accumulated Depreciation and Amortization of Property, Plant and Equipment S-3
VIII. Reserves S-4
IX. Short-Term Borrowings S-5
X. Supplementary Income Statement Information S-6
Schedules other than those listed above have been omitted either because the required information is contained in notes to the consolidated financial statements or because of the absence of the conditions under which the schedules are required.
b. A report on Form 8-K was filed on June 17, 1994 reporting a share purchase agreement. The report was dated June 15, 1994.
c. The following exhibits are filed as part of this report:
(2) Plan of Acquisition, Reorganization, Arrangement, Liquidation or Succession
(2.1) Asset Purchase Agreement--Bear-Kat Products division of Key Manufacturing Group (filed as Exhibit 2.1 to Registrant's Form 8-K dated May 22, 1991, and incorporated herein by reference).
(3) Articles of Incorporation and By-Laws
(3.1) Registrant's Certificate of Incorporation including all amendments.
(3.2) Registrant's By-Laws (filed as Exhibit 3.2 to Registrant's Annual Report on Form 10-K for the year ended June 30, 1993, and incorporated herein by reference).
(4) Instruments defining the rights of security holders
(4.1) Note Agreement dated August 15, 1986 (filed as Exhibit 4.9 to Registrant's Annual Report on Form 10-K for the year ended June 30, 1993, and incorporated herein by reference).
(4.2) Amendments dated September 26, 1988 and November 9, 1988 to Note Agreement dated August 15, 1986 (filed as Exhibit 4.10 to Registrant's Annual Report on Form 10-K for the year ended June 30, 1993, and incorporated herein by reference).
(4.3) Amendment dated December 12, 1989 to Note Agreement dated August 15, 1986 (filed as Exhibit 4.18 to Registrant's Annual Report on Form 10-K for the year ended June 30, 1990, and incorporated herein by reference).
(4.4) Amendment dated May 1, 1991 to Note Agreement dated August 15, 1986 (filed as Exhibit (4.12) to Registrant's Annual Report on Form 10-K for the year ended June 30, 1991, and incorporated herein by reference).
(4.5) Stockholder Rights Agreement dated January 20, 1988 (filed as Exhibit 4.13 to Registrant's Annual Report on Form 10-K for the year ended June 30, 1993, and incorporated herein by reference).
(4.6) Amendment dated June 24, 1988 to Stockholder Rights Agreement dated January 20, 1988 (filed as Exhibit 4.14 to Registrant's Annual Report on Form 10-K for the year ended June 30, 1993, and incorporated herein by reference).
(4.7) Loan Agreements dated December 1, 1989 (filed as Exhibit (4.23) to Registrant's Annual Report on Form 10-K for the year ended June 30, 1990, and incorporated herein by reference).
(4.8) Loan Agreement dated April 16, 1991 (filed as Exhibit (4.18) to Registrant's Annual Report on Form 10-K for the year ended June 30, 1991, and incorporated herein by reference).
(4.9) Amendments dated April 24, 1992 to Loan Agreement dated April 16, 1991 (filed as Exhibit (4.19) to Registrant's Annual Report on Form 10-K for the year ended June 30, 1992, and incorporated herein by reference).
(4.10) Amendments dated April 30, 1992 to Note Agreement dated August 15, 1986 and Loan Agreement dated April 16, 1991 (filed as Exhibit (4.20) to Registrant's Annual Report on Form 10-K for the year ended June 30, 1992, and incorporated herein by reference).
(4.11) Loan Agreement dated September 1, 1993.
(4.12) Loan Agreement dated September 1, 1993.
(10) Material Contracts
(10.1) Lease Agreement dated August 2, 1984 with Rowe Development Company (filed as Exhibit 10.1 to Registrant's Annual Report on Form 10-K for the year ended June 30, 1993, and incorporated herein by reference).
(10.2) First Amendment dated April 27, 1992 to Lease Agreement dated August 2, 1984 (filed as Exhibit 10.2 to Registrant's Annual Report on Form 10-K for the year ended June 30, 1993, and incorporated herein by reference).
(10.3) Second Amendment dated October 22, 1992 to Lease Agreement dated August 2, 1984 (filed as Exhibit 10.3 to Registrant's Annual Report on Form 10-K for the year ended June 30, 1993, and incorporated herein by reference).
(10.4) License dated January 14, 1980 with Illinois Tool Works, Inc. (filed as Exhibit 10.4 to Registrant's Annual Report on Form 10-K for the year ended June 30, 1993, and incorporated herein by reference).
(10.5) Amendment dated June 3, 1991 to License dated January 14, 1980 (filed as Exhibit 10.5 to Registrant's Annual Report on Form 10-K for the year ended June 30, 1993, and incorporated herein by reference).
(10.6) License dated April 6, 1967 with Camcar Division of Textron, Inc. (filed as Exhibit 10.6 to Registrant's Annual Report on Form 10-K for the year ended June 30, 1993, and incorporated herein by reference).
(10.7) Amendment dated July 1, 1988 to license dated April 6, 1967 with Camcar Division of Textron, Inc. (filed as Exhibit 10.7 to Registrant's Annual Report on Form 10-K for the year ended June 30, 1993, and incorporated herein by reference).
(10.8) License dated October 11, 1966 with Research Engineering and Manufacturing, Inc. (filed as Exhibit 10.8 to Registrant's Annual Report on Form 10-K for the year ended June 30, 1993, and incorporated herein by reference).
(10.9) Sublease Agreement dated March 14, 1986 with Parkside Warehouse, Inc. (filed as Exhibit 10.9 to Registrant's Annual Report on Form 10-K for the year ended June 30, 1993, and incorporated herein by reference).
(10.10) Joint Venture Agreement between Nagoya Screw Manufacturing Co., Ltd. and Elco Industries, Inc. dated June 14, 1989 and effective July 1, 1989.
(10.11) Letter Agreements dated June 27, 1989, July 17, 1989 and August 18, 1989 between Elco Industries, Inc. and Okabe Company Limited.
(10.12) Stock Purchase Agreement dated June 7, 1994 between Elco Industries, Inc. and Okabe Company Limited (filed as Exhibit 10 to Registrant's Form 8-K dated June 17, 1994, and incorporated herein by reference).
(10.13) Elco Industries, Inc. Performance Share Plan adopted October 28, 1988 (filed as Exhibit (10.13) to Registrant's Annual Report on Form 10-K for the year ended June 30, 1990, and incorporated herein by reference).
(10.14) Elco Industries, Inc. 1991 Stock Option Plan (filed as Exhibit (10.13) to Registrant's Annual Report on Form 10-K for the year ended June 30, 1992, and incorporated herein by reference).
(10.15) Elco Industries, Inc. 1992 Stock Option Plan For Non-Employee Directors (filed as Exhibit 10.14 to Registrant's Annual Report on Form 10-K for the year ended June 30, 1993, and incorporated herein by reference).
(10.16) Stock Compensation Plan for Non-Employee Directors (filed as Exhibit 10.15 to Registrant's Annual Report on Form 10-K for the year ended June 30, 1993, and incorporated herein by reference).
(11) Computation of Per Share Earnings.
(13) Annual Report to Stockholders for the year ended June 30, 1994.
(21) Subsidiaries of Registrant.
(23) Consent of Independent Accountants.
(27) Financial Data Schedule
-------------------------------------------------------------------------- With the exception of the aforementioned information incorporated by reference in this Annual Report on Form 10-K, the Registrant's Annual Report to Stockholders for the year ended June 30, 1994 is not to be deemed "filed" as part of this Report.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
ELCO INDUSTRIES, INC.
September 21, 1994 By: John C. Lutz John C. Lutz President Chief Executive 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 Registrant and in the capacities and on the dates indicated:
Date Signature ---- ---------
September 21, 1994 John C. Lutz John C. Lutz President Chief Executive Officer Director
September 21, 1994 August F. DeLuca August F. DeLuca Vice President-Finance Chief Financial Officer
September 21, 1994 Kenneth L. Heal Kenneth L. Heal Secretary/Treasurer Chief Accounting Officer
September 21, 1994 Robert L. Berner, Jr. Robert L. Berner, Jr. Director
September 21, 1994 Milton R. Brown Milton R. Brown Director
September 21, 1994 Carl J. Dargene Carl J. Dargene Director
September 21, 1994 G. Robert Evans G. Robert Evans Director
September 21, 1994 Wayne P. Lockwood Wayne P. Lockwood Director
September 21, 1994 Jack W. Packard Jack W. Packard Director
September 21, 1994 David D. Peterson David D. Peterson Director
September 21, 1994 James H. Rilott James H. Rilott Director
Report of Independent Accountants
Our report on the consolidated financial statements of Elco Industries, Inc. and Subsidiaries has been incorporated by reference in this Form 10-K from the 1994 Annual Report to Stockholders of Elco Industries, Inc. and appears on page 38 therein. In connection with our audits of such financial statements, we have also audited the related financial statement schedules listed in the index on page 9 of this Annual Report on Form 10-K.
In our opinion, the financial statement schedules referred to above, when considered in relation to the basic financial statements taken as a whole, present fairly, in all material respects, the information required to be included therein.
Rockford, IL Coopers & Lybrand L.L.P. August 5, 1994 Page S-1
Schedule X
ELCO INDUSTRIES, INC. AND CONSOLIDATED SUBSIDIARIES
Supplementary Income Statement Information For the Years Ended June 30, 1994, 1993 and 1992
Column A Column B Charged to Costs and Expenses ------------------------------------------
Item 1994 1993 1992
Maintenance and repairs $6,403,946 $5,801,522 $6,047,494
Page S-6