Document 7OdgEyDb9MnZeo2mpexJn8xGg

THE GLIDDEN COMPANY CLEVELAND, OHIO TO THE SHAREHOLDERS: December 30, 1933 Herewith is submitted the annual report of The Glidden Company for the year ending October 31, 1933, as certified by Ernst & Ernst. There has been no change in the Company's established procedure in bookkeeping and accounting and the figures contained herein are accordingly comparable with the last annual report. The net profits for the year, after interest, depreciation charges and all State and Federal taxes, amounted to 51,432,863.20 and, after allowing for payment of preferred dividends, were equivalent to 51.51 per share on the 650,000 shares of common stock outstanding. All the properties of the Company have been maintained in excellent physical condition and the regu lar policy of charging depreciation has been followed. Total depreciation for the past fiscal year amounted to 5479,028.88. During the year the Company has acquired a modern and fully equipped vegetable oil refinery at Louisville, Kentucky which is being operated under the name of Van Camp Oil Products Company. This additional plant was purchased for cash at a very advantageous figure and rounds out the facilities of the Food Products Division. The Company has taken advantage of the opportunities afforded by very low prices to accumulate larger inventories than usual at costs well below current markets. The Company has continued to purchase its Five Year 5H% Gold Notes in the open market and has reduced the outstanding funded debt from 54,715,000 to 53,680,000. While the past year has been a difficult one the Company has been able to meet the changing condi tions and to earn a profit. The prospects for the ensuing year are very encouraging. The Board of Directors and Officers desire to take this opportunity to thank the employees and execu tives in charge of operations whose efforts have contributed so substantially to the results as shown in the annual report. By order of the Board of Directors, ADRIAN D. JOYCE, President. g l d o 0880 CONDENSED CONSOLID THE GLIDDEN COMPANY--CLE AS OF THE CLOSE OF BUS! Current ASSETS Cash on Hand, on Deposit and in Transit Customers' Notes and Acceptances Receivable $ 151,646.39 Customers' Accounts Receivable 3,407,076.23 Less: Reserve Miscellaneous Current Accounts and Creditors' Debit Balances Inventories--Raw Material, In Process and Finished Merchandise on Hand and in Transit on basis of lower of cost or market value (Certified by Management) $ 3,558,722.62 171,381.09 ---------- Other Assets Cash Surrender Value of Life Insurance Treasury Stock--11,341 Shares of Common and 1,590 Shares of Prior Preference at Cost Cost of Common Stock Purchased for Resale-- under Option to Employees at Cost 35,355 Snares Officers' and Employee's Notes Receivable for Purchase of Common Stock--8,122 Shares Deposits in Closed Banks Miscellaneous Notes, Accounts, Salesmen's Advances, Sundry Investments, Etc. Permanent Land Buildings, Machinery, Equipment, Etc. on Basis of Cost or Appraisal Value, Less Special Write-down Less: Reserve for Depreciation $ 13,025,397.59 4,337,902.30 Investment in California Mining Companies Mining Companies--Fully Owned (Not operated during current year): Investment in and Advances to The California Zinc Company and Afterthought Zinc Mining Company ---------------------- Good Will, Patents, Trade Marks, Reorganization Expense, Etc. Prior Preference Stock Purchased for Sinking Fund 366 Shares at Cost Deferred Inventory of Advertising Stock, Stationery, Factory Supplies, Unexpired Insurance Premiums, Prepaid Taxes, Etc. $ 680,727.80 3,387,341.53 66,202.14 7,031,107.01 $11,165,378.48 $ 273,111.00 254,792.10 269,080.75 208,670.07 178,607.26 218,746.51 $ 1,751,884.88 1,403,007.69 8,687,495.29 10,439,380.17 1,023,650.80 3,096,326.23 24,060.35 331,826.59 $ 27,483,630.31 The Gladden Company, Cleveland, _ Dtctnkcr 22* 19J3 We submit herewith consolidated balance sheet of THE GLIDDEN COMPANY--CLEVELAND and SUBSIDIARIES, excepting California minim companies, aa of the close of business October 31, 1933, sub ject to the following comments: > , Cash funds on deposit were confirmed directly to us by depositary banks, the amounts reported being reconciled with the balances shown by the Company's records and by reports received from branches and subsidiaries. We inspected notes and acceptances receivable at Cleveland and certain subsidiaries and lists were submitted in substantiation of like items at branches nnd other subsidiaries. Trial balances of customers* accounts receivable were submitted for our examination, but we did not correspond with the individual debtors. We also checked trial balances submitted to ns with individual ledger accounts at Cleve land and at certain subsidiaries. The reserve provided for doobtfu! notes, accounts, discounts, etc., m our opinion, is sufficient. Data examined by ut indicated that merchandise invealories were taken and sticed under the direction of tbe management and tbe entire inventory has been certified to ns by I responsible official of the Company, as to quantities, salability nnd a basis of valuation as representing the lower of cost N 2303.01 185000013 4 ATED BALANCE SHEET VELAND, AND SUBSIDIARIES NESS OCTOBER 31, 1933 Current LIABILITIES Notes Payable for Money Borrowed from Banks Accounts Payable for Purchases, Pay Rolls, Etc. Accrued Taxes, Interest, Insurance, Royalties, Etc. 2 450,000.00 709,549.58 527,909.85 2 1,687,459.43 Funded Debt Five Year 5J^% Gold Notes (Due June 1, 1935): Issued Less: Retired First Mortgage 6% Bonds of Subsidiary Companies (235,000.00 Due April 15, 1934) 2 6,000,000.00 2,500,000.00 2 3,500,000.00 180,000.00 3,680,000.00 Reserve For General Contingencies, Etc., including Deposits in Closed Banks Nominal Capital Stock Prior Preference 1% Cumulative Authorized 75,000 Shares Less: Unissued and Redeemed 10,000 Shares 2 7,500,000.00 1,000,000.00 2 6,500,000.00 268,406.16 Common--Without Par Value Authorized 800,000 Shares Outstanding 650,000 Shares Stated Capital 25.00 per Share 3,250,000.00 Surplus Capital Profit and Loss 2 8,194,404.39 3,903,360.33 / 12,097,764.72 21,847,764.72 2 27,483,630.31 (Note A) The Companies were reported as having letters of credit outstanding in the amount of 2522,347.45 at October 31, 1933. (Note B) This balance sheet is subject to the comments in our "Certificate," included in this report. or market values at October 31, 1933. Tert checks were made by us oftht method of pricinc and mathe- mittral accuracy of inventory computations, but we made no verification of inventory quantities. During the year the investment m California mining companies was increased in the amount of $13,553.73, representing cash advances made by the parent Company. Provision has been made in the accompanying balance sheet for all ascertained liabilities of the Com panies at October 31. 1933. Outstanding gold notes and first mortgage bonds payable were verified by direct correspondence with the trustees. We have made a general review of the operating accounts for the year ended October 31,1933 and include herewith consolidated operating statement and summary of surplus accounts for the year. Subject to the foregoing, WE HEREBY CERTIFY, that in our opinion, based upon the records enm- ined and information obtained by us, the accompanying balance sheet sets forth the financial position of THE GUDDEN COMPANY--CLEVELAND, and SUBSIDIARIES, excepting the California mining companies, as of the close of business October 31, 1933, and the relative operating statement refiects the results from oper ations for the year then ended. Very truly youn, Ernst k Ernst, Certified Public Accountants 1 GLD00058? CONDENSED CONSOLIDATED OPERATING STATEMENT THE GLIDDEN COMPANY-CLEVELAND, AND SUBSIDIARIES For the Fiscal Year Ended October 31, 1933 Net Sales (Excluding inter-company and subsidiary sales and transfers) $ 24,845,551.45 1 Profit Before Interest, Depreciation and Other Deductions Other Deductions--Net Less: Discount on 5J4% Gold Notes Purchased and Retired Interest on Funded Debt i 2,397,206.08 $ 182,717.88 110,886.13 71,831.75 $ 2,325,374.33 233,482.25 Profit Before Providing for Depreciation and Federal Income Tax Provision for Depreciation $ 2,091,892.08 479,028.88 Profit Before Federal Income Tax Provision for Federal Income Tax Net Profit Capital Surplus Balance October 31, 1932 SURPLUS ACCOUNTS $ 1,612,863.20 180,000.00 $ 1,432,863.20 $ 8,167,458.17 Addition Excess of Selling Price Over Cost of 3,000 Shares of Common Stock Sold Balance October 31,1933 Profit and Loss--Surplus Balance October 31, 1932 Net Profit from Operations for the Fiscal Year ended October 31, 1933 Dividends Paid--Prior Preference--7% Balance October 31,1933 26,946.22 $ 8,194,404.39 $ 2,920,165.28 1,432,863.20 $ 4,353,028.48 449,668.15 $ 3,903,360.33 GLD000583