• Home
• About Us

     For fiscal year 2008, net cash was used in operating activities of $394. The Company funded additions to property, plant and equipment in the amount of $1,880 and share repurchases of $3,039 from cash balances. For fiscal year 2007, net cash provided by operating activities was $12,232, which enabled the Company to fund additions to property, plant and equipment in the amount of $1,587 and share repurchases of $515.

     Significant changes in working capital are as follows:

2008 – Operating cash flows decreased primarily due to reductions in other non-current assets and the current portion of non-current liabilities offset by decreases in inventories, prepaid expenses and accrued payroll, advertising and other expenses. During the year the Company funded $2,467 toward its defined benefit pension plan.

2007 – Operating cash flows increased due to the sale of trading securities and reductions in accounts receivable and inventories offset by increases in prepaid expenses and other non-current assets. Significant reductions in accounts payable, accrued payroll, advertising and other expenses and the current and non-current portion of long-term liabilities offset cash flow increases during 2007. During the year the Company funded $3,290 toward its defined benefit pension plan.

Cash used in investing activities:

     Expenditures for property, plant and equipment include the acquisition of new equipment, upgrading of facilities to maintain operating efficiency and investments in cost effective technologies to lower costs. Overall capital spending has declined in recent years as the Company carefully scrutinizes capital investments for short term pay-back of investment. A new major manufacturing line in the amount of $1,914 was put into service in the last quarter of fiscal year 2007.

Cash used in financing activities:

     The Company’s stock repurchase program was approved by the Board of Directors in November 1999 and was expanded in June 2005 (500,000 additional shares authorized, disclosed in a press release and Form 8-K filed on June 17, 2005). Under the stock repurchase program, the Company is authorized, at the discretion of management and the Board of Directors, to purchase up to an aggregate of 2,000,000 shares of the Company’s common stock on the open market. As of October 31, 2008, up to 447,758 shares were still authorized for repurchase under the program.

     The Company has remained free of interest-bearing debt for twenty-two consecutive years. The Company maintains a line of credit with Bank of America that expires April 30, 2010. Under the terms of this line of credit, the Company may borrow up to $2,000 at an interest rate equal to the bank’s reference rate, unless the Company elects an optional interest rate. The borrowing agreement contains various covenants, the more significant of which require the Company to maintain certain levels of shareholders’ equity and working capital. The Company was in violation of the shareholders’ equity covenant which was subsequently waived and modified per an amendment to the agreement (dated as of January 9, 2009). The Company is currently in compliance with all provisions of the agreement. There were no borrowings under this line of credit during the year. Management believes that the Company’s strong financial position and its capital resources are sufficient to provide for its operating needs and capital expenditures for fiscal 2009.

Off-Balance Sheet Arrangements

     The Company does not currently have any off balance sheet arrangements within the meaning of Item 303(a)(4) of Regulation S-K.