Document x5dd94Dom5rEEeq93o3ybZvVy

;i 4X GLD020281 i* h 28 51 50 28 52 31 SUMMARY TRADE BANKING CURRENT mm * ' . * * *V. f ' ^ * " . v* i ;* - a* * * . A- AD 65.FEB.I2 1962 N COOK PAINT A VARNISH COMPANY (INC.) MANUFACTURER,. * 1913 WHOLESALER Aa Al f Also Branches. yj/ 14th A KNOX STREET RETAILER NORTH KANSAS CITY 16 MO CLAY COUNTY TRADE DISC-PPT'^;^-/ ' _S_A_L_E_S .$42,600,939^;.:v;.' .* WORTH : $22,9I2,995*S/-- -.;y; EMPLS ; 1900 ; V:::;. ;. :v-` SALES AND PROFITS DOitfN IN FISCAL .YEAR 1951, HOWEVER .-LIQUIDITY, t MPROv D,.: >' Al NORTH INCREASED SUBSTANTIALLY THROUGH SALE OF" SUBSIDIARY. { FINANCIAL/'...." CONDITION LIQUID. ' .'* - '** " , ">:v' ".1 'J: ` V' ,; ,j. ' " HC OWE P DUE TERMS/v-V:,:* . ildn 14 1962 SOLD * . * :, V. m- 41000 25000 5-15; 4-45 A " Disc : * Over 3 yrs tb ,12; 46 , ' ' ' 1 ; \ :Jr 19000 10000 12000 l-IOth-25ftv V Di sc . 5/15 4/45;.7ir >d isc'r, 1. ..' ** i* * . 1 ..Al yr to 9-6l i. . 6000 500 Regular . .. - .V-\0 isc v/'iOver* 3.:yrs ;/ ' 3000 1000 500 l-fO-30-/ Disc' Disc : - )'0ver 3 yrs / Cast Sale I2*6ii 1000 150 500 - ; - --i ' / ./t- . > Disc. Disc V' - ' * : , . */** * ' * % \ 'i ^ ^ , 2000 .1000 500 ' ' '. \ - ',. Olsc-Ppf: / 30 r -:r.v-p pp.t / j` | * .' ' ; .v.OySr 3 yrs. '' * Vi 300 30 . *;& Ppt /.-.r-;/ .; ;,0ver ?3 yrs to 4h 142 30- Ppt :;;' . ; Over'3 yrs to 12 Principal accounts are maintained at. two local, banks withbalances.. maintained at two St. Louis, Missouri, banks, one Detroit, Ml.ch'Igam'banK5;4 and two New York City banks in addition to smaller accounts with varl.Ws4rss.'*`- other banks. Aggregate balances average Ithe.-.moderate'seven::ffgurefe^&Siv : Bank loans are used during Summer-months Into. jaw;seven-tIgure'* with these loans cleaned-up short I Y>theroaftad)?/Loans are ona. stralgHtp^,-1 ` corporate note basis. - jM . /' News Item of December 6, 1961 stated^stockholders of the subJedt.'appro^^'i'^V''''-'' an Increase In the authorized common stock from-1,000,000 sharesof'.-: par to'1,500,000 shares of $15#' Directors also voted a IOC# stock divlo$hd.;: v : payable January II, to holders of .record December-. 21.. To- eff*ect/.th.e.'v--;:-i*i5s'V^:i.? -A >6,610,845 Increase in capital $2>203;615 came 'fr6m reduction inDarvafU^r;;:' ; and $4,407,230 was a transfer*from-surplus, capitalIzlng part of.' th&v'oate' from the proceeds of sale^ ** (Inc.). Previously, about Its long-term debt end preferred sto ,vj;: : .v'/- On'January duct known produce r(< to curtail;.-.,,,......-.. -- .----- _ ------ . ; , . materials. Coro-Foam insullatlon Is being used-Tn...a/Joint*vent.u^.ofr the Israelii Government and the Ralrbanks-Whitney Corporation:t6:'oonve^t;-,^v*-.<-;v* sea water to fresh water. The project.'on. the .Gulfof.Aqaba reportedly.; //; ; Is nearing completion. '//'V7 ,V -///`Vy !Lyyyyyry. - 2-12-62 (70 35) v-./ ; V; >; GLD020282 ;j,'/ MEASE MO ** L, " <' .i;. .i-t WHITHEI NAME, SySTNCSS . A k"t>. fs T 8 I. W '-J X"c> oVf i V Ol-I^ i-F O N b/. W.) T W P;'- Th torcgolAQ repsort it fur.uti.4, ot'yowr r.qo.rr. .> />. Sb<iplo.-.dor.rr.j.-r;STRICT tONflOENCE. ty. DUN & #l.TAOSTEEET, 'ine. i* yo^l/a^H^p^Sr ler yi>uf ... "f- N<>',drf.r.o`;,l;ty $1 <r.d|'` Or ltjursco, O'.^l. lor ho pr|iijr.>6rpti^r; ' ' ' ' COOK PAINT & VARNISH COMPANY (INC.) NORTH KANSAS CITY 16 MO Following figures received from management through the mail A CD Page I CASH....................................... MARKETABLE SECURITIES. NOTES RECEIVABLE.......... ACCOUNTS RECEIVABLE .. INVENTORY............................ Fi seal Nov 30 1959 (Consolidated) $ 1,996,549 FINANCIAL STATEMENTS Fiscal Nov 30 I960 (Consolidated) $ 2,707,117 4,425,509 8,648,640 4,447,817 8,255,249 Fi seal Nov 30 1961 $ 2,512,601 5,156,872 4,052,500 8,648,086 OTHER CURRENT ASSETS............... TOTAL CURRENT ASSETS......... FIXED a s s e t s .................................... INVESTMENTS................................... PREPAID - DEFERRED..................... Intsr.niMrs ,...... (E) o t h e r a s s e t s .......................i.......... TOTAL ASSETS........................ _ 15,270,699 8,699,122 564,851 i 44.97.1. 24,579,645 I5,390,TT 8,837,664 480,830 I 120.938 '24,879 649' 20,370,060 7,293,256 406,875 1 202.621 isfrir&w OUE BANKS......................................... NOTES PAYABLE................................ ACCOUNTS PAYABLE....................... ACCRUALS........................................... TAXES(Eac*pt Ftdwl ItitMi) ...... FEDERAL INCOME TAXES........... LONG TERM LIABILITIES (CwrMt).. I ,566,780 1,512,721 1,476 , 770 250,000 1,408,614 1,303,339 232,213 1,152,753 250,000 1,235,649 922,349 176,474 3,025,345 OTHER CURRENT LIABILITIES........ TOTAL CURRENT LIABILITIES... LONG TERM LIABILITIES........... ?TB06777Z~ 2,100,000 4,347,420 1,850,000 5,359,817" - RESERVES............... . PREFERRED STOCK.......................... COMMON STOCK.................................. CAPITAL SURPLUS............................ EARNED SURPLUS............................ NET WORTH (Prop w Pt)........................ TOTAL LIABILITIES..................... NET WORKING CAPITAL................. CURRENT RATIO................................ TANGIBLE NET WORTH................... IF USEDs D-DEFICIT, L-LOSS 2,439,480 8,750,960 6,482,933 24,579,645 10,464,427 3.17 17,673,372 2,393,520 8,776,960 19,473 7,492,274 24,879,649 11,042,793 3.54 . 18,682,226 8,817,460 2,130 14,093,406 28,272,814 15,010,243 3.80 22,912,995 (E) F.iininated in computing tangible n6t worth. Err.si it Ernst, CPA's, Kansas City, Missouri, were tha outside auditors. At November 30, 196!, receivables listed net of $200,000 allowance for baddebts. Inventories priced at lower of cost (first-in- , first-out ) or market. Fixed assets listed net- of $6,733,886 allowance for depreciation. No contingent liabilities reported. 2-12-52 (CONTINUED) GLD020283 COOK PAINT & VARNISH COMPANY (INC.) NORTH KANSAS CITY 16 MO A CD Page 2 INCOME STATEMENTS AND SURPLUS OR NET WORTH RECONCILIATIONS FOR THE YEARS ENDED Nov 30 1959 Nov 30 I960 Nov 30 1961 NET SALES ...................................... COST OF GOODS SOLD................. GROSS PROFIT................................... EXPENSES........................................ DEPRECIATION............................... NET INCOME ON SALES................. OTHER INCOME.............................. OTHER EXPENSES........................ FEDERAL INCOME TAXES............ OTHER TAXES................................. FINAL NET INCOME......................... $ 45,676,739 30,283,022 15,393,716 14,458,897 2,857,030 149,571 1,890,000 1.726.277 $ 45,304,882 29,239,359 16,065,523 15,182,769 3,259,258 123,347 2,027,000 ?q,nnn 1.962'.665 $ 42,600,939 27,754,452 14,846,487 14,437,505 2,329,558 93,542 1,285,000 i9rnno 1 .340'.993 SURPLUS-NET WORTH-START..... ADDi NET INCOME......................... ADJUSTMENTS....................... DEDUCTi NET LOSS..................... ADJUSTMENTS ..................... DIVIDENDS-WITHDRAWALS.. SURPLUS-NET WORTH - END.......... IF USEOs D* DEFICIT, L-LOSS 5,642,318 1,726,277 2,019 3 887,683 6,462.933 6,482,933 1,962,665 - _ 953,323 7,492,274 7,492,274 1,340,998 (A) 6,390,967 <B) 150,819 980,013 14.093.406 (A) tain on Rale of subsidiaries assets, less applicable Income taxes of $2,232,000# (8) f.xcess of redemption price over par value of 39,173 shares of series A prior stock, less amount charged to capital surplus. The auditors statement included the following footnote: Subsequent to November 30, 1961, the Certificate of Incorporation was amended to eliminate the Prior Preference Stock from the authorized capital of the Company and to change the authorized Common stock to 1,500,000 shares of a par value of $15.00 a .-h-ve. A IOC# Common stock dividend (being In the nature of a two-for-one stock split) was declared to stockholders of record on December 21, 1961. The result of these transactions will bo to transfer approximately $4,400,000.00 from earned surplus to the Common Stock account. ANALYSES The foregoing figures of November 30, 1959 and I960 reflect the consolidat~ ed position of Cook Paint 4 Varnish Co. (Inc.) and its subsidiary, however the subsidiary was liquidated in 1961. The subsidiary, Cook Broadcasting Co., sold ail of its assets (except cash and receivables) ss of August 27, 1961 and subsequently distributing the remaining assets to Cook Paint A Varnish Co. in complete liquidation. Gross broadcasting income of $2,022,015 (included in Other Income figure), net income of $202,478 and special credit cf $6,390,967 applicable to the subsidiary are includ ed in the statements of Income and earned surplus of the company for the fiscal year ending November 30, 1961. Annual sales increased steadily for many years, reaching a peak during 1959. The sales decrease ?n 196! was reported due primarily to a decrease in industrial sales covering product finishing, with all consumer! sales equalling I960. Gross income of the broadcasting subsidiary decreased from $3,000,649 to $2,022,015., however this represented only nine months of operations in the most recent fiscal year. . To assist in financing peak seasonal summer operations, the company has used short term bank loans obtained on straight corporate note paper, aggregating in the seven figures. In addition, long-term financing has been used to provide adequate capital for expansion of factory warehouse and retail stores facilities of the parent company :;nd instruction of a new transmitter for the subsidiary. With the assistance of this financing program, sufficient funds have been available for meeting all obligations within regular terms. Long-Term Liabilities: Long-term debt in amount of $2,100,000 was paid in full during fiscal year ending November 30, 196! with the proceeds from the sale of Cook Broad casting Co. 2-'2-" .00*0!.4 COOK PAINT & VARNISH COMPANY (INC.) 14th 4 KNOX STREET NOR1H KANSAS CITY 16 MO. A CO Pago 3 MANAGEMENT Lathrop G. Backstrom, Chairman of Board John S. Ayres, Pres J. Robert Mosby, V-Pres John W. Clark, V-Pres Earl W. Wad low, V-Pres Clare F. McMahon, V-Pres C. Hugh Whitelaw, V-Pres Dorman H. O'Leary, V-Pres Dawey H. Baldwin, V-Pres Menefee D. Blackwell, Sec Harold B. Fisher, Trees. DIRECTORS: Lathrop G. Backstrom, Clare F. McMahon, Dorman H. O'Leary, Esthmer H. Skinner, John $. Ayres, Dr. Desmond Curran, Edward M. Cox, C. Hugh Whitelaw, Menefee D. Blackwell, Harold B. Fisher and Dewey H. Baldwin. HISTORY Started: 1913 by the late Charles R. Cook as the C. R. Cook Paint Company. Succeeded In 1919 by the Cook Paint 4 Varnish Company, a Missouri corpor- at ion which was succeeded by present Delaware corporation in 1927. Incorporated: Under Delaware laws May 27, 1927. Authorized Capita! Stock: 69,173 shares of $60. par value Series A Par Preference stock and I,000,000 shares of $20. par Common stock. Outstanding Capital Stock: No Preferred stock and 440,873 shares of Common stock. Common stock is listed on ihe American Stock Exchange. Kcinagemenl of the operation is under the direction of L. G. Backstrom. Control of the Common stock js vested in the family of the late Charles R. Cook. According to a provision of his Will, title to his 4-0.9% stock interest was placed in two trust estates. Beneficiaries are his widow and his two daughters. Trustees are the first National Bank of Kansas City, Missouri and L. G. Backstrom, Chairman of the Board. Lathrop S. Backstrom, born 1895, married. Joined company 1926 and thereafter assumed administrative duties with Eastern Division. Elected Director 1937; Executive VicePresident 1942; President 1946, Chairman of the Board 1956. John 5. Ayres graduated from the University of Missouri with a Degree in Chemical En gineering J935. Employed by Cooks Kansas City Research Division in 1936. Became manager of the Detroit Research Division shortly after his transfer there In 1940. Elected Vice-President 1959. President I960. John W. Clark, born 1906, married. Entered employ of company 1929. In charge of Research Department and supervises production. Clare F. McMahon has been with the company some twenty years, and has charge of the wallpaper and floor coverings division as well as supervising country sales and stores in Kansas, Missouri, Oklahoma, Texas, Arkansas and Michigan. J. Robert Mosby, born 1902, married. With company since 1920 and Assistant Vice-Pres ident to 1942, then Vice-President. Is manager of Detroit, Michigan Automotive and Industrial Division. Dcrman H. O'Leary, born 1897, married. Years interested in Stern Brothers & Company, local investment bankers. Elected to Board of Cooks 1935, 1943 severed connections with Stern Brothers. Now has general management of ail manufacturing plants and jnduslria) relations. Ccv-ey H. Baldwin joined company 1913, Elected Vice-President 1950. In charge of Norir.err. Division with offices in Omaha, Nebraska. Earl W. Wad low, born 1897, married. Employed as clerk 1918, and now Director of pur- 2H2-62 (CONTINUED) GLD020285 COOK PAJNT & VARNISH COMPANY (INC.) V NOR1H KANSAS CITY 16 MO A CD Pago 4 HISTORY (Con+'d.) chases. 1938 advanced from Assistant .'Vice-President- to Vice-President., Menefee D. Blackwell ves Assistant.Secretary for seme years until being elected Secre tary in 1954. Also legal counsel. ' , C. Hugh Whitelaw, born 1899, married. . Employed :l.923-as chemist., Manager, of. Detroit, Michigan, automotive and Industrial -sales;'' '>/) ' V`Vf Harold B. Fisher, elected Treasurer. 1957,'withithe company number of.years and auditor 1953-1957. : ': In addition to the foregoing off leers, thecq. are/six assistant vice-presidents, active in various department, E, H. Skinner lives in Balboa Island, Califorhia,' Desmond Curran eye surgeon, Kansas TTTty, Missouri. Edward M. Cox. Vice-President1 .and' Trust officer, of First National Bank, Kansas City, Missouri. 1 FIRE RECORD: Several losses have occurred,, siT ful!y covered by fire insurance. Fol lowing an explosion October 24,' 1935 fire cc>mpl'eteiy*destroyed research unit, lacquer and enamel manufacturing plants in North KanSas'City);Missouri.r' Loss 'in excess of . $250,000 was fully covered by Jnsurarxf:. OntApri! ?8,> 1948 warehouse and.division offices at St. Louis, Missouri, the loss of $235,OCO was covered by insurance. May 16, 1949 sustained an uninsured flood lossvat the Fort Worth, Texas pUntof $100,000 to $150,000. On September 15, 1950 the company's synthetic resin plant at Kansas City was seriously damaged but the loss was fuily covered by .insurance. Thepl#nt was rebuilt. Flood loss suffered in Julyv 195F is said not to have exceeded $30,000 to $35,000; most of the loss-was.at.;Manhattan,.Kansas'. . . OPERATION Products: Manufactures, wholesales and; retcii Is Cook's'palntn, varhlshes ..........................lacquers, enamels'ar.d'syhtheiic' reslns.: "7n addition, If wholesale's, and retails painting tools, and supplies, wallpapering supplies, lino.leum asphalt, also wallpaper and rubber tile, Productsmarksfedbundep.'a.',number of prand names;'.'.' Defense Contracts: None. Purchases: Most purchases are net 30-day :tbr;riS3':ho'A'ever',- some'purchases run:to net 30 days end net, 70 days. Various disccunts.-aval iable., Distribution: About 35$ of sales to frtdustrial customers who use finishes in.the [ manufacturer of 'their -own products; 15$ to,` independent paint, hardware and general ' stores which act as Cook.dealers; and 50$ to bohsumerstdirectihrough' it's own' re+aiI stores. At November 30, 1961 the comp3ny had :t47 f'e+ai l ;s.tores. -.tO/YY, Territory: Principally Southwest and Middjewestvf: Terms of Sales: Industrial terms are .1$ .lO.'daysVriet'Sp arid 1$ 20th Prox dealer terms are 2% 10 days, net 60. Retail credit terms of.i$:ib; days, net; 30extended, occasional ly extended, retai l sales however made''prlh6ipaMy^fci* ^cash. .. ' V V Salesmen: About 200# ' (: J Seasons: Spring through summer peak period.' ; ` Advertising: Radio, television, newspapers vand reat signs. Number of Employees: .About 1900 including.salesmen^ 2-12-52 (CONTINUED).. GLD020286  Vi;. COOK PAINT & VARNISH COMPANY (INC.) NOR1H KANSAS CITY 15 MO A CD Page 5 .OPERATION (Cont'd.) ' Branches: In addition to the manufacturing plant in North Kansas City, Missouri iy the company has manufacturing plants at Houston, Texas and Detroit, Michigan. The /principal purchases are made from those three pointSj In addition, the company maintains warehouses and distributing branches at the following points: V Minneapolis, Minnesota St. Louis, Missouri Omaha, Nebraska Oklahoma City, Oklahoma Tulsa, Oklahoma Fort Worth, Texas San Antonio, Texas Dalles, Texas Houston, Texas Detroit, Michigan Facilities; The various factories and warehouse buildings are owned. Most retail stores are operated in leased premises. The plant at North Kansas City, Missouri comprises over twelve acres of ground and twenty-three buildings, including paint, varnish and resin factory, laboratory, end warehouse facilities. Aggretp.Vfloor area for the entire plant is 668,000 square feot, all sprinkler equipped except the varnish cooking unit. The Detroit plant consists of six buildings located cn five acres of ground and the Houston, Texes plant occupies.six buildings located on five acres of ground. Most plant buildings are of brick and rs-ir.forced concrete con struction, ranging in height from ,:.n tc five sfo.es, and all are maintained in : good repair. 2-12-62 (70 35) (120) GLD020287 .. .> ' .? . 3 If I?.*". I j1 vvijmLUwmjtrm STATISTICS - Fiv ytm 1957 l?5l. Inctalv* Ccneon etcck - C^O.CO par valvof /.Wtf lect^d ct 11/39/a YEAR 1961 EAR?! MGS mfati i i.i i C2-C2 too*: v,wn rcn ***i*?^s (;i*97(A) rraJBKTATK^O r*'-i CTl : U (!Ss?) 40 3/4 I960 4.20 35.66 59 34 1959 3.67 34.3? 50 S/2 56 1958 2.72 32.42 CZ tfit 50 1957 2.52 31.18 63 51 AVERAGE 3.19 59 50 54 1/2 Pries tints earning* ratio 5 year svei$a 17 tlK5S \ &rk*t quotations cffcsr reducing ths pa? vrJ/n of ths cosnon stock from |20.00 par stars to $15.00 prt stars eni authorising a 100 took epllt effective January 11, 1952 KIs'i .v , f/P/J"! 6/13/62 25 3/4 */* SI 3/3 21 (*) Th book vsluj et KworfeM* JO, lJl roflcsts tf fita on th# eslo of the eutatrfler/*$ eeote less Federal inso?.^ tarn explicable ttarato. ;k/` .? * i-S . 0LD0202S8 * KQVCSrai 30, 1961 feS,Sl Current Attett Cash and U S* Securities Receivables Inventories Deferred Total Current Ataets Total Current Liabilities Net Current Ascts Other Assets Property, Plant and Equipment Net C 7/C:0s47J Ac;2,$oo G,648,0ft no$l;f 202,623 JL,522a?52 lABILITlES Copltal Stock and Surplus Coirmon stock Copltal surplus Earned surplus $ 8,617,460 2,130. i&m&L Net sales Income before taxee Income after texts Gain on salt of sub sidiary's assets-net Net Income and special credit J9ft________ --M?----------------------- 4S5!_; ~J532__ <2,600,939 45,304,0-'?. <5,676,759 38,672,67? 37,2117631 2.644.993 4,010,663 3,642,277 2,740,541 2,524,525 1.340.993 1,962,665 1,726,277 1,315,541 1,227,525 6,390,96? 7.731,9*5 / / CLD020289 S3 c o o k pain t v ar nis h c o t an l STATISTICS - Five years 1957 to 1961* inclusive Cordon stock - $20.00 per valu?j 440,073 issued at 11/30/61 YEAR EARN irCS FcR SHARE BOOK VALUE F rvurn QuotATiars [iwi l'*AN 1961 12.82 851.97(A) (Hov) 54 (f.3r) 40 3/4 1960 4.20 36.66 59 54 1959 3.67 34*35 . 53 1/2 56 1958 2.72 32.42 6.2 1/2 50 1957 2.52 31-10 63 51 AVERAGE 3.19 59 50 54 1/2 Price times earnings ratio - 5 yoor average - 17 times Market quotations after reducing the par value of the corcnon stock from $20.00 per share to $15.00 per share and authorizing a 100? stock split effective January 11, 1962 High tow 6/12/62 6/13/62 25 3/4 19 1/2 21 3/C 21 (A) - The book value t Wovcnber 30, 1961 reflects the gain on the eele of the subsidiary1* assets, less Federal income taxes applicable thereto* 6LD020290 COOK PAINT ft^AratCHXO^Hl NGVECSft 30, 1?S1 ASSETS Current Asset* Cash end U. S. Securities Receivables Inventories Deferred * Tots! Current Ascets Total Current Liabilities Net Current Acests Other Assets Property, Plant and Equlpsant - Mot t 7,66?,473 4,0:2,500 s/^.r,oe.s ,____ '^Ct'6 $20,776,935 T^ms\i 0 15,417,118 202,622 -JL231321 iittmim Capital Stock and Surplus Common stock Capital surplus Earned surplus 5 8,617,460 2,130 JA-ISWOZ Net sales Income before taxes .Income after taxes Gain on sale of sub- sidiary's essets-oet Net income end special credit 42,600,935 2,644,993 1,340,990 i960___ 45,304,02 4,010,665 1,962,663 45,676,739 3.642.277 1.726.277 2.740.541 1.315.541 _J2S2_ 37,2117631 2.524.525 1.227.525 6,390,967 7,731,935 , / 6L002029I