Document OoQaQMdyJw68xKrgGwVq5N7L

* I , 4 c u c vc l an o k W w r h ewcAao ' tr.Lctois 1 ' SANrRA*C4SCO NtWOALCAKS SCRANTON w CAIHHO ' ' ^INNCApOLIS ' TORONTO June 3, 1930 TO OUR STOCKHOLDERS: It is our policy to keep our Stockholders fully informed of the progress of the company and inasmuch as our six months' statement of operations is now being published, I sm giving you the information, together with the necessary comments to make the statement entirely clear to you. `. v Our fiscal year begins with November 1st---which this year was coincident with the stock market panic. Ordinarily, and in normal years, the first six months of our business year show very narrow margins of profit. This is the off season for the Paint and Varnish business, and our other lines are much more active in the Spring and Summer season. This year the- Industrial Sales of ourPaint'iind Varnish Division, owing to'the decrease in manufactur ing activity and particularly to the curtailment of-automobile production, have suffered seriously.' While the automobile and motpr accessory business is less than 15% of our total Paint and Varnish business, yet the loss'involiime in tic'Winter months materially affected our profit showing. The steady decline in the price.of basic commodities such as leacLandjsinc, vegetable oils andothcrbulk materials used in our .business has made it necessary for us to continually absorb Inventory losses during the first six months of the year. Fortunately, this period is now behind us and our pric.es on raw materials of pra<> ticallyaU linesare veryclose tothe presentlow marketquptations. It is apparent, therefore, that with the coming of the Summer season we may e^>ect a constantly 'in*? proved-showing. ` In fact, the second quarter.of our fiscal year shows an increase in profit of,pver.60%;as compared with the first quarter.; .The operating.profit for the entire company for tbe'first six months, after taxes but before depreciation, was $811,694.12 compared with |1,5024%40 fc^.^.tsaiae-period last^rear; After deducting depreciation on all of our properties the final net profit, after all barges, for the six months* period ending.April 30,1930, was $48J,01SJ6 as compared with $1,294,042.63 for last year. . The difference in the profit shoWingis very largely accounted for bytprlceaieClines which teve aTOoiinted to approximately[$625,000.00.for the six months'period, and also by the increased adverting and sales expense that was necessary to-maintain our. position in the trade.; As. result of our-advertising and sales effort we have added many new accounts and have succeeded in maintaining our general; sales volume. In the Paint and Varnish Division albrie we have added 3,722 pew. customer accounts. Our new Food Plants are nowall Completed and in operation, and with conditions becoming more normal this business will give a good account .cff itself. ,, ... : ; The ipah^eiirient febls that tljl flict that,we have made.a profit each month of the year, in .spite ofde> dining prices an|l in; spite of the delay in completing some of our manufacturing units, is very good evidence that for the balance 6f the year the results should be very satisfactory to our stockholders. . . "'' r After giving effect :4s of Aprijl 30th to. our refcent sale of $6,000,009 five-year 5H% Debdtfcures, oiir Balance Sheet will show a ratio of current assets to current liabilities of over seven and one-half to one/ ''1 ADJ-V. 1 ., _ , "V: ' -.i *r ", * i Yours truly, . . ^.-'.'ADRIAN' D/jOYCE.^*..v .. r President. After deducting depreciation on allof our properties the final net profifctafter all charges, for the six months' period ending April 30, :i930i was $485,018.56 as compared with $1,294,042.63 for last year; --^ L- ^ mS ~ - - ^--^- l-> - m m mm m'mrn 'L -- --i" 4m mtiimmim jimmm * -- -- - -- S*-*- - -- After deducting depreciation on all of our properties the final net profife**fter ail charges, for the six months' compared/with the first quartet, taxes but before depreciation, was $811, After deducting depreciation on all of our properties the final net Proftaafter all charges;for the six months' period ending Apru 30,* 1930, was $485,018.56 as compared with $1,294,042.63 for last year; " provea'r&ddi%"m?rae{rrtraf$<f3Kdi?^^ hn^dl;\i^.ili^'^^.iq^ter. ;Theopeitftihg j>rojE| fo#'for if#first Ik taxes but before depreciation, was $811,04'. 12 compared ^fihl'lif102ilf^40 jpr! After deducting depredation on all of our properties the fin?! ne| profifciafter all charges, for the six months' period ending Apru 30,*'1930, was $485,018.56: as compared with $I,294;042.63 for last year; . proveo^fcdiffgHTn'riifclriftrifitiaMff'i^^ compared with the first, quarter. ;Tlie'#e#t|h.g profit for the ehtire company jSr.^hfe' first|k months,`after taxes but before depreciation, was $811,04112 compared After deducting depreciation; on ^x^'o^^i^pjpercie^ ^te-fb^'s^<pKol||MgTOaar ,|i charges, for the six months* period ending April 30/'1930, was $485,018.56 as compared witfi $1,294;042.63 for last year; . proved^*$t%74 compared with thefirstquarter. ; Theoperriting profit for' the entire cqrfiptoy fo thie first *k months; after taxes but before depreciation, was $8li,69|4'.i2'con^pated u4th;f1,502,i5!2;40 for tli^lsaiiii6r'^eHoa Ia&!V&rf After deducting depreciation on all of our properties trie final net profiwifoer all charges, for the six months* period ending April 30/1930, was $485,018.56 as conipared with $1,294*042.63 for last year; . provea^fcd^Tm'jfeifrrmrfiEcaKffija^ compared; with the first; quarter, The operating profit for the efttirl company for the first six months -after taxes but before depreciation, was $8li,694li2'compared with'$1,502,152,40 for iHiifiaiiie Tpeifod iaj^V&r; After deducting depreciation on allqf otir properties the final net profifcitafter all charges, for the six months' period ending April 30/-1930, was $485,018.56 as compared with $1,294,042.63 for last year; compared with the first quarter. ; The operating profit for the ^tire company for 1^' first six months; *after taxes but before depreciation, was $811,694112 comparedwith'41,502il52.40 for the:saiiie i^eHod ftuitf'ii'laf; After deducting depreciation on allof our properties the final net profitwafter all charges, for the six months' period ending April 30/-1930, was $485,018.56 as compared witfi $1,294,042.63 for last year; compared with the first quarter. ;The: operating profit for' the efitire company for thefirtt sk months;-after taxes but before depreciation, was $811,694112 'compared with $1,502,152.40 for WS^iS&l After deducting depreciation on all of our properties the final net profit^after all charges, for the six months' period 'endirtg April 30/1930, was $485,018.56 as compared witfi $l,294,042.63 for last year; .. The difference in'the profit showing fevery largely acwuht to approximately $625,000:00 for the s& months' period, and also% the increased advertising and sales' ttcpense that was necessary to maintain our position in the trade. As result of our advertising and saies`effort w'CKave added many new accounts and have succeeded in niaintaining o|uf general sale* volume. In'lhe'Paint arid Varhish Division alone we have added 3,722 new customer accoupts. . Our new Food Plants are now all completed arid in operation, and with conditions becoming more normal this business will give a good accqunt of itself. 0 -* ' . .... The management feels that the fact that We have made a profit eaitii month of'the year, in spite of de clining prices and in spite"of the delay in completing some of <ftir:'tnanufacturing units, is very good evidence thatjor the balance of the year the results should be Very satisfactory to our stodtholders^{ : After giving effect as of April 30th to our recent sale of if6,000,000 five-year'5$% Debratures,':qur Balance Sheet will show a ratio of current assets to current liabilities of over seven and one-half to orie. " . Yours truly,.. . a e u -y ;..;^ : ADRIAN D.' JOYCE a President. GL0002986