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Hubbell Annual Report, Year Ended Dec 31, 1993

Filing Date
Filed March 25, 1994
Period End
December 31, 1993
Security
HUBB
In the record · 2016–202610-K1110-Q338-K110

HUBB filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 110 current reports (8-K) between 2016 and 2026.

  1. Restructuring8-K · Jan ’17Jan ’17
  2. Leadership change8-K · Mar ’19Mar ’19
  3. Material agreement8-K · Mar ’21Mar ’21
  4. Material agreement8-K · Nov ’25Nov ’25

01—Abstract

Summary

Summary of the 10-K filed March 25, 1994. Cited figures are marked; the original filing is the authoritative source.

Hubbell Incorporated reported 1993 net sales of $832.4 milliona, up from $786.1 million in 1992, but net income fell to $66.3 million ($2.10 per share) from $77.6 million ($2.45 per share) as a fourth-quarter pretax restructuring charge of $50.0 million ($31.0 million net of tax, or $.98 per share) weighed on results.

Excluding the charge, the filing states net earnings would have been $97.3 millionb, or $3.08 per share. The restructuring program includes consolidating all or part of ten manufacturing facilities, reducing the labor force by approximately 6%, reorganizing certain management structures, and realigning warehousing and distribution. The company expects the program to yield annual savings and cost avoidance of as much as $25.0 million after an approximate three-year implementation.

The balance sheet remained solid, with working capital of $131.9 millionc, a current ratio of 1.6 to 1, and total assets of $874.3 million. Total borrowings of $91.1 million in notes payable and $2.7 million in long-term debt were stated as 16.8% of shareholders' equity. Operating cash flow rose to $118.5 million from $85.2 million.

Management also disclosed a March 16, 1994 agreement to acquire A. B. Chance Industries, Inc. for $41.1 milliond in stock consideration plus retirement of $66.9 million of Chance's debt, to be funded from internal funds and up to $40.0 million of short-term borrowing.

By segment, Low Voltage sales rose 2% to $432.0 million, High Voltage sales rose more than 23% to $134.2 million on the Hipotronics acquisition and higher insulator and surge arrester shipments, and Other segment sales rose more than 4% to $266.3 million. Backlog at December 31, 1993 was approximately $60.4 million versus $54.7 million a year earlier.

02—Key points

Key Highlights

  1. Net sales rose to $832.4 million in 1993 from $786.1 million in 1992, with growth from distributors, home centers, Ohio Brass, and the Hipotronics and E. M. Wiegmann acquisitions.
  2. Net income declined to $66.3 million ($2.10 per share) from $77.6 million ($2.45 per share), reflecting a $50.0 million pretax ($31.0 million after-tax, $.98 per share) restructuring charge recorded in Q4 1993.
  3. Restructuring program covers consolidation of all or part of ten manufacturing facilities and a reduction in labor force of approximately 6%, with annual savings and cost avoidance of as much as $25.0 million after roughly three years.
  4. Pending acquisition of A. B. Chance Industries for $41.1 million plus retirement of $66.9 million of Chance debt, subject to conditions and regulatory approvals.
  5. Balance sheet remained strong with working capital of $131.9 million, a 1.6 to 1 current ratio, and total borrowings equal to 16.8% of shareholders' equity.
  6. Operating cash flow increased to $118.5 million from $85.2 million in 1992.
  7. Quarterly dividends were raised to $0.41 per Class A and Class B share in the second through fourth quarters of 1993, totaling $1.63 per share for the year.

03—Questions

Frequently Asked Questions

  1. What caused the decline in 1993 net income?

    The decline stemmed mainly from a $50.0 million pretax restructuring charge recorded in the fourth quarter of 1993, which reduced net income by $31.0 million, or $.98 per share. Excluding the charge, the filing states net earnings would have been $97.3 million, or $3.08 per share.

  2. What is the restructuring program expected to deliver?

    The company expects annual savings and cost avoidance of as much as $25.0 million after an approximate three-year implementation. Of the charge, $7.25 million had been spent by year-end 1993, with $14.0 million more anticipated in 1994 and the balance spent approximately equally in 1995 and 1996.

  3. How will the A. B. Chance acquisition be financed?

    The company stated it will pay for the acquisition out of internally available funds and additional short-term borrowing of up to $40.0 million. The purchase price is $41.1 million for Chance's outstanding capital stock, and Chance's existing debt of $66.9 million will be retired. The deal is subject to conditions and regulatory approvals.

  4. How strong is Hubbell's balance sheet and liquidity?

    At December 31, 1993, working capital was $131.9 million and the current ratio was 1.6 to 1. Notes payable were $91.1 million and long-term debt was $2.7 million, which together equaled 16.8% of shareholder equity. The company stated it was in compliance with its borrowing agreement covenants, which require minimum shareholder equity of $400.0 million.

  5. Which segments drove sales growth in 1993?

    High Voltage sales rose more than 23% on the inclusion of Hipotronics and higher insulator and surge arrester shipments, reaching $134.2 million. Low Voltage sales rose 2% to $432.0 million, and Other segment sales rose more than 4% to $266.3 million, helped by the Wiegmann acquisition.

04—Continue

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