codewithdark/sec-edgar-rpt · Datasets at Hugging Face

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(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code (407) 829-9000
--------------

Title of each class Name of each exchange on which registered

Common Stock, $1.00 par value American Stock Exchange
----------------------------- -----------------------

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the company was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [ X ] No [ ]

Based on the closing sales price on December 6, 2000, the aggregate market value
of the voting stock held by non-affiliates of the Company was $7,437,634.

Indicate the number of shares outstanding of each of the Registrant's classes of
common stock, as of December 3, 2000: 3,168,047 shares of common stock, $1.00
Par Value.

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of Form 10-K or any amendment to this Form
10-K. [ ]

Documents Incorporated by Reference:

Proxy statement to security holders incorporated into Part III for the fiscal
year ended September 30, 2000.


<PAGE>


PART I

ITEM 1. BUSINESS
--------

RECENT EVENTS AND STRATEGIES
----------------------------

In fiscal 2000, Dixon Ticonderoga Company (hereinafter the "Company")
continued its aggressive restructuring and cost reduction efforts begun in 1999.
The Company completed the consolidation of its Deer Lake, Pennsylvania Consumer
plant into other facilities in Mexico and the U.S. and carried out personnel
reduction activities as planned in the first phase of its Restructuring and Cost
Reduction Program, designed to improve overall financial performance in the
future. In the fourth quarter of fiscal 2000, the Company embarked upon the
second phase of its cost reduction program, which includes further consolidation
of certain U.S. manufacturing processes into Mexico, the consolidation of its
Mexico operations into a new 300,000 square foot facility and additional
personnel reductions in manufacturing, sales, marketing and corporate
activities. In connection with the program's second phase, the Company recorded
approximately $1.6 million in restructuring and related costs. Overall, the
Company reported a net loss of $(0.8) million (and net income of $0.3 million,
exclusive of the effects of restructuring and related costs) in fiscal 2000.
The Company also initiated a strict U.S. working capital reduction / cash
flow enhancement program in fiscal 2000. The program emphasized enhanced
inventory control and reduction, improved accounts payable management and
continued accounts receivable improvement. The Company implemented new inventory
management systems and processes and successfully reduced its U.S. inventories;
improved the days outstanding of its accounts payable; and continued its strong
accounts receivable collection practices. However, the strict inventory
reduction efforts resulted in significant plant manufacturing inefficiencies as
production levels were cut back, contributing to poor operating results in the
U.S. Consumer division. Despite the lower level of operating profits, the
aforementioned programs resulted in an increase in cash flow from operations of
approximately $13 million when compared with fiscal 1999.
In addition, in 2000, the Company created a wholly-owned subsidiary in
China. Beijing Dixon Ticonderoga Stationery Company, Ltd., is engaged in the
manufacture of wood slats for pencil manufacturing and the sourcing and
distribution of certain consumer products for international sale by the Company.
In 2000, the Company also successfully completed the disposition of its
graphite and lubricants business with the wind-up of the operations of Dixon
Industrial Mexico, S.A. de C.V. The Company sold the majority of its graphite
and lubricants business for $23.5 million in March 1999.
The Company also successfully negotiated amendments to its subordinated
and senior debt agreements to cure covenant defaults that occurred earlier in
fiscal 2000 and to avoid a complete refinancing of its debt.
Further information regarding these matters is included elsewhere in this
Annual Report on Form 10-K.


<PAGE>

<TABLE>
<S> <C> <C> <C> <C> <C> <C>
COMPANY ORGANIZATION
--------------------
Dixon Ticonderoga Company
(Parent)
\|
\|
\|
_________________________________________________________________________

(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code (407) 829-9000

--------------

Title of each class Name of each exchange on which registered

Common Stock, $1.00 par value American Stock Exchange

----------------------------- -----------------------

Indicate by check mark whether the registrant (1) has filed all reports required

to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934

during the preceding 12 months (or for such shorter period that the company was

required to file such reports), and (2) has been subject to such filing

requirements for the past 90 days. Yes [ X ] No [ ]

Based on the closing sales price on December 6, 2000, the aggregate market value

of the voting stock held by non-affiliates of the Company was $7,437,634.

Indicate the number of shares outstanding of each of the Registrant's classes of

common stock, as of December 3, 2000: 3,168,047 shares of common stock, $1.00

Par Value.

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405

of Regulation S-K is not contained herein, and will not be contained, to the

best of registrant's knowledge, in definitive proxy or information statements

incorporated by reference in Part III of Form 10-K or any amendment to this Form

10-K. [ ]

Documents Incorporated by Reference:

Proxy statement to security holders incorporated into Part III for the fiscal

year ended September 30, 2000.

<PAGE>

PART I

ITEM 1. BUSINESS

--------

RECENT EVENTS AND STRATEGIES

----------------------------

In fiscal 2000, Dixon Ticonderoga Company (hereinafter the "Company")

continued its aggressive restructuring and cost reduction efforts begun in 1999.

The Company completed the consolidation of its Deer Lake, Pennsylvania Consumer

plant into other facilities in Mexico and the U.S. and carried out personnel

reduction activities as planned in the first phase of its Restructuring and Cost

Reduction Program, designed to improve overall financial performance in the

future. In the fourth quarter of fiscal 2000, the Company embarked upon the

second phase of its cost reduction program, which includes further consolidation

of certain U.S. manufacturing processes into Mexico, the consolidation of its

Mexico operations into a new 300,000 square foot facility and additional

personnel reductions in manufacturing, sales, marketing and corporate

activities. In connection with the program's second phase, the Company recorded

approximately $1.6 million in restructuring and related costs. Overall, the

Company reported a net loss of $(0.8) million (and net income of $0.3 million,

exclusive of the effects of restructuring and related costs) in fiscal 2000.

The Company also initiated a strict U.S. working capital reduction / cash

flow enhancement program in fiscal 2000. The program emphasized enhanced

inventory control and reduction, improved accounts payable management and

continued accounts receivable improvement. The Company implemented new inventory

management systems and processes and successfully reduced its U.S. inventories;

improved the days outstanding of its accounts payable; and continued its strong

accounts receivable collection practices. However, the strict inventory

reduction efforts resulted in significant plant manufacturing inefficiencies as

production levels were cut back, contributing to poor operating results in the

U.S. Consumer division. Despite the lower level of operating profits, the

aforementioned programs resulted in an increase in cash flow from operations of

approximately $13 million when compared with fiscal 1999.

In addition, in 2000, the Company created a wholly-owned subsidiary in

China. Beijing Dixon Ticonderoga Stationery Company, Ltd., is engaged in the

manufacture of wood slats for pencil manufacturing and the sourcing and

distribution of certain consumer products for international sale by the Company.

In 2000, the Company also successfully completed the disposition of its

graphite and lubricants business with the wind-up of the operations of Dixon

Industrial Mexico, S.A. de C.V. The Company sold the majority of its graphite

and lubricants business for $23.5 million in March 1999.

The Company also successfully negotiated amendments to its subordinated

and senior debt agreements to cure covenant defaults that occurred earlier in

fiscal 2000 and to avoid a complete refinancing of its debt.

Further information regarding these matters is included elsewhere in this

Annual Report on Form 10-K.

<PAGE>

<TABLE>

COMPANY ORGANIZATION

--------------------

Dixon Ticonderoga Company

(Parent)

|

_________________________________________________________________________