and Subsidiary Companies

Size: px

Start display at page:

Download "and Subsidiary Companies"

Amy Bruce
6 years ago
Views:

1 YEAR ENDED JUNE 30, 1938

2 THIRTYFIFTH ANNUAL REPORT of JULIUS KAYSER & CO. and Subsidiary Companies showing Consolidated Balance Sheet and Income and Surplus Accounts For the fiscal year ended June 30,1938 GENERAL OFFICES 500 FIFTH AVENUE NEW YORK CITY

3 To THE STOCKHOLDERS: The annexed Consolidated Balance Sheet and statements of Income and Surplus, as audited and certified by Messrs. Touche, Niven & Co., independent auditors, show the result of operations of your Company and its whollyowned subsidiaries for the fiscal year ended June 30, 1938, and their condition at the close of that period. While the amount of the net income for the year, carried to earned surplus, is disappointingly small as compared with the results of the preceding year, nevertheless your Company closed its year with current assets in excess of Six Million Dollars as against current liabilities of only slightly over Four Hundred Thousand Dollars, with no bank loans and no funded debt (other than a negligible item based upon the assumed mortgage of a subsidiary company and which can not be paid in advance of its maturity date) and with a capital surplus of somewhat more than Two Million Five Hundred Thousand Dollars and an earned surplus of slightly more than Four Million Dollarsthis showing that your Company maintains its exceptionally strong and liquid position. During the year, and for the purpose of expanding your Company s business in England, an arrangement was made with the Full Fashioned Hosiery Co., Ltd. (which company owns and operates a large plant at Baldock, England, for the manufacture of women s fullfashioned hosiery selling generally in the lower price ranges under the wellknown English brand Bondor ) whereby that company will manufacture as well under the Kayser brand as under its own Bondor brand and the product so manufactured will be marketed by a new English corporation called KayserBondor, Ltd., in which your Company is the owner of slightly over a fifty per cent. stock interest. The operations of this new corporation to date have been satisfactory both as to sales volume and profit margin. During the year your Company s plants and equipment have, as always, been adequately maintained and kept in a highly efficient condition. As usual, ample provision has been made for taxes, Federal and State, and for depreciation of capital assets. Inventories, taken at the lesser of cost or merchantable value, are no greater than is necessary to meet the ordinary demand for your Company s products. Once again the Management records its appreciation of the unswerving loyalty and devotion to the interests of the Company and its Stockholders, shown during the period under review, as heretofore, by the individual members of our organization. By order of the Board. Respectfully submitted, HENRY L. VAN PRAAG, President. August 11, 19%.

4 TOUCHE, NIVEN & CO. CERTIFIED PUBLIC ACCOUNTANTS EIGHTY MAIDEN LANE NEW YORK August 5, To THE PRESIDENT AND BOARD OF DIRECTORS OF JULIUS KAYSER & CO.: We have made an examination of the consolidated balance sheet of Julius Kayser & Co. (a New York corporation) and its whollyowned subsidiary companies as at June 30, 1938, and of the statements of income and surplus for the year then ended. In connection therewith, we examined or tested accounting records of these companies and other supporting evidence and obtained information and explanations from officers and employees; we also made a general review of the accounting methods and of the operating and income accounts for the year, but we did not make a detailed audit of the transactions. In respect of the subsidiaries not consolidated but the investments in which are adjusted to the Company s equity therein, a balance sheet of the English Company as of June 30, 1938, confirmed by English independent auditors, has been submitted to us, and a balance sheet of the Australian Company as of June 30, 1938, submitted by cable by that company, has been confirmed to us by cable by Australian independent auditors. The writedown of $2,608, in plant account as at January 1, 1933, which, in our opinion, should have been applied in reduction of earned surplus, was deducted by the Company from capital surplus following its announcement to the stockholders, under date of October 24, 1932, of its intention to apply the reduction in capital in part to the reduction of property values and subsequent depreciation charges. In our opinion, based upon such examination and subject to the above comments, the accompanying consolidated balance sheet and statements of income and surplus, with the explanations contained therein, fairly present, in accordance with accepted principles of accounting consistently maintained by the Company during the year under review, the consolidated position of Julius Kayser & Co. and its whollyowned subsidiary companies at June 30, 1938, and the results of their operations for the year. TOUCHE, NIVEN & CO.

5 JULIUS KAI (A New York AND WHOLLYOWNED ASSETS CURRENT ASSETS: Cash... Customers accounts and notes receivable, less reserves for doubtful receivables and discounts Sundrydebtors... Inventories of materials, work in process, finished goods and supplies on the basis of cost or merchantable value, whichever is lower... DEPOSITS WITH MUTUAL INSURANCE COMPANIES, CITY OF NEW YORK AND OTHERS DEFERRED CHARGES TO OPERATIONS INVESTMENTS IN SUBSIDIARIES NOT CONSOLIDATED: Capital stock of and advances to Australian subsidiary company, 99.26% owned, at equity value; and other advances in Australia Capital stock of and advances to English subsidiary company, % owned, at equity value Capital of and advances to minor foreign subsidiary company, whollyowned, less reserve to reduce to nominal amount Consolidated June 30,1938 June 30,1937 $ 1,728, $ 1,487, ,344, ,234, S , ,978, ,190, $ 6,078, $ 7,033, $ 72, $ 63J94.82 $ 58, $ 69, $ 1,582, $ 1,427, , $ 1,720, $ 1,427, Balanz CAPITALfASSETS: Land, buildings, machinery and equipment, at cost, less appropriation for revaluation made from capital surplus at January 1, ~... Less reserves for depreciation PATENTS, TRADEMARKS AND GOODWILL $ 8,149, $ 8,086, ,399, ,253, $ 1,750, $ 1,832, $ 1.00 $ 1.00 $ 9,678, $10,427, In consolidating the balance sheet of the Canadian subsidiary compan Canadian dollars have been converted at $99 to the dollar, and in adjustin the equities in the Australian an B English subsidiary companies, the foreign currencies have been converted at f to the Australian pound and $4.954 to the English pound, the current rates of exchange at June 30,1938; except that fixed assets of these three companies have been converted at the rates prevailing% acquisition. The consolidated earned surplus includes $2,226, representing undistributed profits of subsidiary companies in foreign countries, of which $458, is included under investments in Australia and England, and the balance is merged in the respective other assets and liabilities.

6 YSER & CO. Corporation) UBSIDIARY COMPANIES Sheet, June 30, 1938 LIABILITIES CURRENT LIABILITIES: Accounts payabletrade creditors Reserve for additional duties on prior years imports Reserve for federal taxes on incomecurrent year Credit balances in customers accounts Accrued wages, accrued taxes and other liabilities Funded debtoutstanding bonds and mortgages of subsidiary company... June 30,1938 Jmc 30,1937 $ ;,Xf$ $ 114,822.05, * 11, ,ooo.~ 16, , ,253x 361, ,400.OO $ 406, $ 637,587.G FUNDED DEBToutstanding bonds and mortgages of subsidiary company of which $~,OOO.OO is payable within one year RESERVES: For possible additional assessments of federal income taxesprior FoF:Esible addi%& duty on foreign purchases For intercorn any profit in inventories of subsidiary companies not consoli B ated , CAPITAL STOCK AND SURPLUS: Number of shares Capital stock: Jacne 30, Jm 30, Employees preferred : Authorized, $l,ooo,ooo.oo par value $50.00 each... 20,000 20,000 Issued and outstanding....., ,287 11,114 Cash received on subscriptions ,287 11,220 Common: Authorized, $2,5OO,OOO.O0 par value $5.00 each , ,000 Issued , ,120 Less in treasury ,120 84,120 Surplus, per attached statement (includin par value of Company s common stoc & Earnedsurplus ,ooo 400,000 amounts representing in treasury): Capital surplus, arising from reduction in value of common stock. less writedown of patents, trademarks and goodwill and of plant account as atjanuary 1, $ 4,400.OO $ 81, $ 36, ,OOO.OO 85,OOO.OO 7, $ 174, $ 121, $ 514,350.OO $ 555,700.OO 3,552.OO $ 514,350.OO $ 559,252.OO $ 2,420, $ 2,420, ,600.OO 420,600.OO $ 1,960, $ 2,000, $ 4,090, $ 4,513, $ 2,532, $ 2,590, CONTINGENT LIABILITIES: Jane 30, 1938 Jzm 30, 1937 $ 9,097, $ 9,663, $ 9,678, $10,427, On bills discountedexport business, etc. $201, Mortgage by subsidiary company assumed by purchaser of property ,300.OO $241, ,800.OO $209, $249, The companies properties and machinery as for man years past, were insured in the New England Manufacturers Mutual Fire Insurance E o. group.

7 JULIUS KAYSER & CO. AND WHOLLYOWNED SUBSIDIARY COMPANIES CONSOLIDATED INCOME ACCOUNT Year ended June 30, 1938 Year ended June 30,1938 Year ended June 30,1937 NET SALES , $14,729, $15,070, COST OF SALES, selling and administrative expenses ,621, ,012, INCOME FROM OPERATIONS $ 108, $ 1,058, OTHER INCOME: Interest and discount earned Royalties Foreign exchange profit Miscellaneous....., , Increase in equity of investment in Australian subsidiary company during current year resulting from refits from o rations and losses (1937) an B profits (1938 IT from exchange conversion... Increase in equity of investment in English subsidiary company during current year resulting from profits from operations , Less loss on exchange conversion in consolidation of balance sheet of Canadian subsidiary company... $ 66,600.ll 38, , , , $302, Q $ 82, , , , , $245, , , $ 400, $ 1,303, OTHER DEDUCTIONS: Interest expense ,! $ 9, New York State franchise tax , Depreciation (based on values as estimated by the management at January 1,1933 and on cost of subsequent additions) J93.43 Miscellaneous , $ 5, , , , , INCOME before provision for federal taxes on income * $ 119, PROVISION FOR FEDERAL TAXES ON IN COME: Normal income tax Undistributed profits tax (of a subsidiary company) $ 1,012, $ 93,750.oo 1,250.OO 95,ooo.oo NET INCOME, to earned surplus.., $ 119,469.86

8 JULIUS KAYSER & CO. AND WHOLLYOWNED SUBSIDIARY COMPANIES CONSOLIDATED SURPLUS Year ended June 30, 1938 EARNED SURPLUS: Year ended June 30, 1938 Balance at beginning of year $4,513, Add net income, per income account , Year ended June 30,1937 $4,523, , Deduct: Cash dividends aid : Common s tot l?c $499, Employees preferred stock ,015.W $4,633, $802, ,960.OO S5944L $542, $846, Provision to reduce to nominal amount of $1.OO investment in and advances to minor foreign subsidiary company ,865.OO 81, , BALANCE AT END OF YEAR, TO BALANCE SHEET $4,090,4g5.17 $4,513, CAPITAL SURPLUS: Balance at beginning of year $2,590,X36.53 Add proceeds from sale of capital assets which had been written off against capital surplus as of January 1, $2,590, Less excess of cost of common stock acquired during year over par value thereof , BALANCE AT END OF YEAR, TO BALANCE SHEET $2,532,54g.o3 $2,624, , s&627, ,675.OO $2,590,786.53

9 1 DIRECTORS JULES S. BACHE RALPH H. BARUTH CHARLES J. HARDY LAURANCE MAYER RUSSELL K. BOADWEE THEOPHIL H. MUELLER PAOLINO GERLI JOSEPH GERLI CLARENCE W. SINN HENRY L. VAN PRAAG EDWARD WISE GENERAL OFFICERS HENRY L. VAN PRAAG, President CLARENCE W. SINN, VicePresident and Treaszlrer RUSSELL K. BOADWEE, Vice President LAURANCE MAYER, VicePresident RALPH H. BARUTH, VicePresident THEOPHIL H. MUELLER, VicePresidelzt CHARLES J. HARDY, Secretary and General Comsel

Fortieth Annual Report. JULIUS KAYSER & Co. YEAR ENDED JUNE 30,

Fortieth Annual Report. JULIUS KAYSER & Co. YEAR ENDED JUNE 30, Fortieth Annual Report JULIUS KAYSER & Co. YEAR ENDED JUNE 30, 1943 The next annual meeting of the stockholders will be held on Wednesday, November 17, 1943. A formal notice of such meeting, together with