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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-K
(Mark One)
[x] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED)
For the fiscal year ended June 24, 1994
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1945 (NO FEE REQUIRED)
For the transition period from to .
Commission File No. 0-8564
New England Business Service, Inc.
(Exact name of registrant as specified in its charter)
Delaware 04-2942374
(State or other jurisdiction of (IRS Employer Identification number)
incorporation or organization)
500 Main Street 01471
Groton, Massachusetts (Zip Code)
(Address of principal executive offices)
Registrant's telephone number, including area code: (508) 448-6111
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act:
Common Stock ($1.00 par value)
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 registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes [x] No [ ]
Indicate by check mark if disclosure of delinquent filers
pursuant to Item 405 of Regulation S-K ( 229.405 of this chapter)
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 this Form 10-K
or any amendment to this Form 10-K. [ ]
The aggregate market value of the Registrant's Common
Stock, par value $1.00 per share, held by stockholders who are
not affiliates of the Registrant at August 31, 1994 as computed
by reference to the closing price of such stock on that date was
approximately $225,640,000.
The number of shares of Registrant's Common Stock, par
value $1.00 per share, outstanding at August 31, 1994 was
15,475,550.
Documents Incorporated By Reference
1. Portions of the Annual Report to Stockholders for the
fiscal year ended June 24, 1994 are incorporated by reference
into Items 5, 6, 7 and 8 (Part II) and Item 14 (Part IV) of this
Report. Such Annual Report, except for the parts therein which
have been specifically incorporated by reference, shall not be
deemed "filed" for the purposes of this report on Form 10-K.
2. Portions of the Proxy Statement sent to stockholders
in connection with the Annual Meeting to be held on October 28,
1994 are incorporated by reference into Items 10, 11,12 and 13
(Part III) of this Report. Such Proxy Statement, except for the
parts therein which have been specifically incorporated by
reference, shall not be deemed "filed" for the purposes of this
report on Form 10-K.
PART I
ITEM 1. BUSINESS
Founded in 1952, New England Business Service, Inc. (which,
with its branch, NEBS Business Stationery in the United Kingdom,
and its wholly-owned subsidiaries, SYCOM Inc. of Madison,
Wisconsin, NEBS Business Forms Limited of Midland, Ontario and
NEBS Software, Inc. of Nashua, New Hampshire shall be referred to
as the "Company") is a Delaware corporation whose principal
executive offices are located at 500 Main Street, Groton,
Massachusetts 01471. Its telephone number is (508) 448-6111.
Reference is made to the information contained in Note 11,
Financial Information by Geographic Area, in the Notes to the
Consolidated Financial Statements on page 25 of the Company's
Annual Report to Stockholders for the fiscal year ended June 24,
1994.
Products
The Company's product line consists of well over 1,000
standardized imprinted manual and computer business forms,
stationery, custom forms designed to meet specific needs of
individual customers, other printed products and a line of small
business accounting software. Products are either specifically
designed for different lines of business or are generally usable
by all small businesses and professional offices. Their value is
enhanced by high quality, fast delivery, and competitive prices.
Typical examples of the Company's standardized manual
business forms are billing forms, work orders, job proposals and
purchase orders, all of which provide small businesses with the
financial and other records necessary to properly manage their
businesses. Stationery, including letterheads, envelopes and
business cards, is available in a variety of formats and ink
colors to provide small businesses with their desired image.
Checks and check writing systems are offered to facilitate the
writing and recording of checks as well as the posting of the
related bookkeeping entries. Marketing products, such as
advertising labels, pricing tags and labels, signage and seasonal
greeting cards, are designed to promote customer awareness. In
addition, a line of filing system products has been designed
specifically for use by small professional offices.
The Company also offers a line of NEBS(R) proprietary
software, computer forms (both continuous and laser) and other
computer related products. NEBS propriety software includes
checkwriting, billing and mailing application packages as well as
a variety of simpler form-filling software, all of which are
compatible with business forms offered by the Company. The
Company's computer forms are compatible with over 3,500 personal
computer software packages developed by third parties and used by
small businesses.
The Company's One-Write Plus(R) line of accounting software is
designed for the business automating for the first time. One -
Write Plus integrates accounting and payroll functions with basic
word processing, mail merge, a spreadsheet link, a backup utility
and a menu organizer. Modeled on the manual one-write accounting
system, the software combines the benefits of computerized
accounting with the familiar format of the manual method used by
more than five million small businesses. One-Write Plus consumes
a wide variety of NEBS forms, such as multi-purpose checks,
payroll checks, accounts-payable checks, laser forms, tax forms,
invoices, statements, labels, letterheads and other general
business forms. One-Write Plus has an established leadership
position within the small business market, having been well
received for over ten years by tens of thousands of customers.
2
Product Development and Research
The Company's products are designed principally by its
product development staff. To generate new product ideas, the
Company relies upon an ongoing program of personal field
research, including calls on customers and prospective customers,
focus groups and mail surveys as well as unsolicited inquiries
and suggestions. After the product research is completed, the
information is turned over to a product designer who employs
traditional as well as computer-aided design methods to create
the final product, whether it be an estimate form for contractors
or merchandise bags for retailers. Throughout this process,
feedback from customers and prospects is maintained.
The Company has an internal software development group that
develops the program code for new software products and upgrades.
From time to time, outside contractors may be employed or sub-
routines licensed as part of developing all or a part of a
product.
Sales and Marketing
To generate sales, the Company relies almost exclusively
upon promotional materials it mails to its over 1,285,000
customers and its list of over 6,500,000 prospective customers.
All of these materials contain one or more order forms to be
completed by the customer or prospective customer and either
telephoned, mailed or faxed to the Company. The Company promotes
the use of its toll-free telephone and fax lines and over 80% of
its orders are received by these means. The Company also utilizes
a dealer network to provide products to that portion of the small
business market which would not normally order by mail. The
Company also employs a small outside sales force to facilitate
the distribution of its software product line through software
and computer distributors and retailers.
The Company attributes much of its success to its ability
to capitalize on the unique characteristics of mail order
marketing. This ability, coupled with telemarketing, allows it to
select and penetrate geographically dispersed but, in the
aggregate, significant markets. Within these markets the Company
targets small businesses with 20 or fewer employees through
specialized promotions and products specifically designed for
them.
The Company maintains its customer and prospect lists in
such a way that it can, with the use of sophisticated database
marketing software, select names and plan mailings based on
whether the recipients are customers or prospects, the types of
business they are in, and if customers, what they purchased, how
recently they purchased, how frequently they purchased and how
much they purchased. The Company compiles prospect names from
telephone directories and other sources as well as renting
prospect lists from others.
The Company's promotional materials are of three types:
catalogs of various sizes, promotional circulars with samples,
and inserts included with outgoing invoices, statements and
shipments. In addition, the Company utilizes space advertising in
magazines and post card packages to generate sales leads from
prospective customers.
The Company relies on the U. S. Post Office for
distribution of its advertising materials. Over the past few
years, postage rates for third class mail have increased
periodically. The Company has been able to absorb these increases
through cost reduction programs and selective price increases.
Raw Materials, Production and Distribution
The Company produces semi-finished business forms on high
speed roll fed presses from raw paper. The Company also purchases
partially printed forms from a number of sources at competitive
prices. The Company has no long-term contracts with any of its
suppliers and has not experienced a shortage of paper for its
products, catalogs or advertising brochures in over 20 years. The
cost of paper used for products and advertising materials
constitutes, directly or indirectly, less than 20% of sales.
3
The Company has specialized presses for short-run printing
and other pieces of production equipment for typesetting and
imprinting customer headings. These include computerized
typesetters, platemaking systems, letter presses and offset
presses. In addition, it has manual and semi-automatic bindery
equipment. The Company has a number of presses which it has
designed specifically for the specialized short-run needs of its
market. The Company believes these specialized presses allow it
to produce customer orders more efficiently than would be
possible with the equipment which is available from typical press
equipment suppliers. The Company's software products are
duplicated and packaged by outside vendors.
The Company has no significant backlog of orders. It is the
Company's policy to ship customer orders for most product lines
within two days from receipt of order. In fiscal 1994, over 71%
of its orders were shipped within two days and 88% within five
days.
To allow for such prompt shipments, the Company maintains
significant inventories of raw paper ($721,000 at year-end in
fiscal 1994) and partially printed business forms and related
office products ($7,019,000 at year-end in fiscal 1994). To
further reduce the time between receipt of an order and delivery
to the customer, as well as to better manage its inventory
balances, the Company has increased its investment in high speed
roll fed presses which convert raw paper into semi-finished forms
for inventory.
The Company ships its products by United Parcel Service
(UPS) and Parcel Post. The Company bills the customer for the
shipping charges on all orders shipped on open account while it
absorbs the normal surface shipping charges for those customers
(approximately 10%) who remit payment with their orders.
Competition
The Company's primary competition for printed products sold
is the local job shop printer of which there are approximately
35,000 located in the United States and other companies marketing
business forms by mail order. In addition, there are
approximately 20,000 retail stationery stores located throughout
the United States, many of which offer preprinted business forms
to businesses in their immediate trading area. Local printers
have the advantage of physical proximity to their customers, but
frequently lack design expertise and are generally unable to
offer products of complex construction or continuous forms for
desktop computers. In addition, the cost of producing a small
order for a single customer works to their disadvantage.
Typically, preprinted business forms offered by stationers are
limited to general purpose forms suitable for use by a broad
cross-section of businesses and are not designed for specific
lines of businesses nor imprinted with the customer's name,
address or phone number.
Presently, there are approximately 10 to 15 companies
marketing business forms and supplies by mail, some of which are
divisions of larger companies. The Company believes that the
primary competitive factors considered by customers are printing
accuracy, guaranteed satisfaction, speed of delivery, service,
availability of a complete product line and price. The Company
believes that it is the largest mail order marketer of business
forms to the very small business market in the United States and
Canada.
The Company's One-Write Plus line of accounting software
competes primarily with 5 to 10 other major software products
marketed to small businesses to fulfill their complete accounting
needs. The One-Write Plus software seeks to combine strong
accounting controls with ease of use.
4
Employees
Including its subsidiaries, the Company had approximately
2,083 full-time and part-time employees at year-end. It has a
number of employee benefit plans, including medical and
hospitalization insurance, a cash profit sharing plan, a salary
deferral 401(k) plan and a defined benefit pension plan.
Environment
There have been no material effects on the Company or any
of its subsidiaries arising from their compliance with federal,
state, and local statutes and regulations relating to the
protection of the environment.
Executive Officers of the Company
Except for William C. Lowe, who was elected by the Board of
Directors on November 12, 1993, all of the Company's executive
officers were elected to office on October 22, 1993 at the first
meeting of the Board of Directors following the Annual Meeting.
Each officer holds office until the first meeting of the Board
following the next Annual Meeting and until a successor is
chosen. For information concerning executive officers who are
also directors of the Company, refer to the Company's Proxy
Statement incorporated herein by Item 10 of this Report.
Information concerning other executive officers follows.
Robert S. Brown, Jr., age 47, joined the Company in 1971
and has served in numerous capacities in operations and
marketing, both in the United States and Canada. In 1986, Mr.
Brown assumed the position of Advertising & Product Development
Director. In 1988, he became Market Management and Product
Development Director. In 1989, he was elected Vice President NEBS
Business Forms Marketing & Product Development and in 1991, Vice
President - General Manager, Marketing. In April, 1994, he
assumed his present position as Vice President - General Manager,
Subsidiaries.
Russell V. Corsini, Jr., age 51, joined the Company in 1982
as Corporate Controller and was elected Vice President, Chief
Financial Officer in October, 1983.
ITEM 2. PROPERTIES
The Company owns land and buildings housing its offices and
production facilities in Massachusetts, New Hampshire, Arizona,
Missouri, Wisconsin, Ontario and the United Kingdom. The Company
leases office facilities in New Hampshire, Texas and Arizona. The
Company owns land for future expansion in Georgia.
The Company's corporate offices are located in an office
building in Groton, Massachusetts. This building, which was
completed in 1978 and expanded in 1982, contains 125,000 square
feet of floor space and is located on 36 acres of land. It
provides offices for marketing, administration, information
resources, purchasing, finance, and executive personnel.
In Townsend, Massachusetts, six miles from its Groton
headquarters, the Company has a production and administration
facility situated on 15 acres of land, containing 120,000 square
feet of floor space. This building,which originally housed all of
the Company's operations, was built in 1959 and expanded from
time to time up through 1989.
In Peterborough, New Hampshire, the Company owns a
production facility, built in 1975 and expanded in 1978, which
contains 128,000 square feet of floor space and is situated on 48
acres of land.
5
In Maryville, Missouri, the Company owns a 95,000 square
foot production facility situated on 50 acres of land and built
in 1980.
In Flagstaff, Arizona, the Company owns a 91,000 square
foot production and administration facility situated on 24 acres
of land and built in 1985.
In Madison, Wisconsin, the Company's subsidiary SYCOM, Inc.
owns a 56,000 square foot office and production facility situated
on 5 acres of land. This facility was built and expanded during
the period 1971 through 1992.
In Douglasville, Georgia, the Company has purchased 14
acres of land for the purpose of constructing a facility at a
future time.
In Midland, Ontario, the Company's Canadian subsidiary,
NEBS Business Forms Limited, owns a 97,000 square foot office and
production facility situated on 8 acres of land. This facility
was constructed in 1985 and expanded in 1989.
In Chester, England, the Company owns a 38,000 square foot
office and production facility situated on 4 acres of land. This
facility was constructed in 1989.
The Company also leases office space in Nashua, New
Hampshire (25,000 square feet), Dallas, Texas (5,000 square feet)
and Phoenix, Arizona (14,000 square feet).
The Company believes the production and office facilities
now in existence are adequate for its present and foreseeable
future needs.
ITEM 3. LEGAL PROCEEDINGS
To the Company's knowledge, no material legal proceedings
are pending on the date hereof to which the Company is a party or
to which any property of the Company is subject.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable.
PART II
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED
STOCKHOLDER MATTERS
The section entitled "Common Stock" located on page 27, and
footnotes 4, 5, 6 and 12 to the Consolidated Financial Statements
on pages 22-23 and page 25 of the Company's Annual Report to
Stockholders for the fiscal year ended June 24, 1994 are
incorporated herein by reference. The number of record holders of
the Company's Common stock at August 31, 1994 was 889. The
Company estimates the number of beneficial owners of the
Company's Common stock to be 5,700 at August 31, 1994.
6
ITEM 6. SELECTED FINANCIAL DATA
The section entitled "Eleven Year Summary" located on pages
14 and 15 of the Company's Annual Report to Stockholders for the
fiscal year ended June 24, 1994 is incorporated herein by
reference.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The section entitled "Management Discussion and Analysis"
located on pages 26 and 27 of the Company's Annual Report to
Stockholders for the fiscal year ended June 24, 1994 is
incorporated herein by reference.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTAL DATA
The Consolidated Financial Statements and notes thereto
located on pages 16-25 and 27 of the Company's Annual Report to
Stockholders for the fiscal year ended June 24, 1994 are
incorporated herein by reference.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND FINANCIAL DISCLOSURE
Not applicable.
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
The sections entitled "Nominees for Election as Directors"
located on pages 3 and 4, of the Company's Proxy Statement for
the Annual Meeting of Stockholders to be held October 28, 1994 is
incorporated herein by reference. See also "Executive Officers of
the Company" in Item 1 above in this Report.
ITEM 11. EXECUTIVE COMPENSATION
The section entitled "Compensation of Officers and
Directors" located on pages 5-7 of the Company's Proxy Statement
for the Annual Meeting of Stockholders to be held October 28,
1994 is incorporated herein by reference.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The section entitled "Voting Securities" located on pages 1
and 2 of the Company's Proxy Statement for the Annual Meeting of
Stockholders to be held October 28, 1994 is incorporated herein
by reference.
ITEM 13. CERTAIN BUSINESS RELATIONSHIPS - COMPENSATION COMMITTEE
INTERLOCKS AND INSIDER PARTICIPATION
The section entitled "Certain Business Relationships -
Compensation Committee Interlocks and Insider Participation"
located on page 4 of the Company's Proxy Statement for the Annual
Meeting of Stockholders to be held October 28, 1994 is
incorporated herein by reference.
7
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K
(a)(1) The following financial statements which are located
on the following pages of the Company's Annual Report to
Stockholders for the fiscal year ended June 24, 1994 are
incorporated herein by reference.
Page(s)
Independent Auditors' Report 27
Consolidated Balance Sheets as of June 24, 1994 and June 25, 1993 16-17
Statements of Consolidated Income for the fiscal years ended June 24, 1994,
June 25, 1993 and June 26, 1992 18
Statements of Consolidated Stockholders' Equity for the fiscal years ended
June 24, 1994, June 25, 1993 and June 26, 1992 19
Statements of Consolidated Cash Flows for the fiscal years ended June 24, 1994,
June 25, 1993 and June 26, 1992 20
Notes to Consolidated Financial Statements 21-25
(2) The following financial statement schedules are filed
as part of this report and are located on the following pages:
Page(s)
Independent Auditors' Report 12
Schedule I Marketable Securities - Other Investments 13
Schedule V Property, Plant and Equipment 14
Schedule VI Accumulated Depreciation of Property, Plant and Equipment 15
Schedule VIII Valuation and Qualifying Accounts 16
Schedule IX Short-Term Borrowings 17
Schedule X Supplementary Income Statement Information 18
Schedules II, III, IV, VII, XI, XII, XIII and XIV are
omitted as not applicable or not required under Regulation S-X.
(3) Exhibits required to be filed by Item 601 of Regulation S-K:
(3)(a) Certificate of Incorporation of the Registrant.
(Incorporated by reference to the Company's Current Report on
Form 8-K dated October 31, 1986.)
(3)(b) Certificate of Merger of New England Business
Service, Inc. (a Massachusetts corporation) and the Company,
dated October 24, 1986 amending the Certificate of Incorporation
of the Company by adding Articles 14 and 15 thereto.
(Incorporated by reference to the Company's Current Report on
Form 8-K dated October 31, 1986.)
8
(3)(c) By-Laws of the Registrant. (Incorporated by
reference to Exhibit (3)(c) to the Company's Annual Report on
Form 10-K for the fiscal year ended June 29, 1990, filed
September 14, 1990.)
(4) Specimen stock certificate for shares of Common
Stock, par value $1.00 per share. (Incorporated by
reference to the Company's Post-Effective Amendment No. 1 to the
Registration Statement on Form S-8 (Registration No. 2-72662).)
(9) Not applicable.
(10)(a) NEBS 1990 Key Employee Stock Option and Stock
Appreciation Rights Plan dated July 27, 1990. (Incorporated by
reference to Exhibit (10)(a) to the Company's Annual Report on
Form 10-K for the fiscal year ended June 29, 1990, filed
September 14, 1990.)
(10)(b) Executive Bonus Plan for 1994.
(10)(c) Executive Bonus Plan for 1995.
(10)(d) Line of Credit Agreement, dated November 1,
1993, between the Company and The First National Bank of Boston.
(10)(e) NEBS Deferred Compensation Plan for Outside
Directors. (Incorporated by reference to Exhibit 10(d) to the
Company's Annual Report on Form 10-K for the fiscal year ended
June 25, 1982, filed September 23, 1982.)
(10)(f) NEBS 1994 Key Employee and Eligible Director
Stock Option and Stock Appreciation Rights Plan dated July 22,
1994.
(10)(g) NEBS Stock Compensation Plan dated July 25, 1994.
(10)(h) Separation Agreement dated December 17, 1993
between the Company and Bartley H. Calder.
(10)(i) Key Employee Non-Incentive Stock Option
Agreement between the Company and William C. Lowe granted as of
November 12, 1993.
(11) Not applicable.
(12) Not applicable.
(13) The Annual Report to Stockholders for the fiscal
year ended June 24, 1994.
(16) Not applicable.
(18) Not applicable.
(19) Not applicable.
(21) List of Subsidiaries.
(22) Not applicable.
9
(23) Consent of Deloitte & Touche LLP.
(24) Not applicable.
(27) Article 5 Financial Data Schedule.
(28) Not applicable.
10
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
NEW ENGLAND BUSINESS SERVICE, INC.
(Registrant)
BY /s/ William C. Lowe
(William C. Lowe, President
and Chief Executive Officer)
Date: September 19, 1994
Pursuant to the requirements of the Securities Exchange Act
of 1934, this report has been signed below by the following
persons on behalf of the Registrant in the capacities and on the
dates indicated.
Name Title Date
/s/ Richard H. Rhoads Chairman and Director September 19, 1994
(Richard H. Rhoads)
/s/ William C. Lowe President, Chief Executive September 19, 1994
(William C. Lowe) Officer and Director
/s/ Peter A. Brooke Director September 19, 1994
(Peter A. Brooke)
/s/ Benjamin H. Lacy Director September 19, 1994
(Benjamin H. Lacy)
/s/ Robert J. Murray Director September 19, 1994
(Robert J. Murray)
/s/ Frank L. Randall, JR. Director September 19, 1994
(Frank L. Randall, Jr.)
/s/ Jay R. Rhoads, Jr. Director September 19, 1994
(Jay R. Rhoads, Jr.)
/s/ Robert Ripp Director September 19, 1994
(Robert Ripp)
/s/ Russell V. Corsini, Jr. Principal Financial and September 19, 1994
(Russell V. Corsini, Jr.) Accounting Officer
11
INDEPENDENT AUDITORS' REPORT
New England Business Service, Inc.
We have audited the consolidated financial statements of
New England Business Service, Inc. and its subsidiaries as of
June 24, 1994, and June 25, 1993, and for each of the three years
in the period ended June 24, 1994, and have issued our report
thereon dated July 22, 1994; such financial statements and report
are included in your 1994 Annual Report to Stockholders and are
incorporated herein by reference. Our audits also included the
consolidated financial statement schedules of New England
Business Service, Inc. and its subsidiaries, listed in Item 14.
These financial statement schedules are the responsibility of the
Company's management. Our responsibility is to express an opinion
based on our audits. In our opinion, such financial statement
schedules, when considered in relation to the basic consolidated
financial statements taken as a whole, present fairly in all
material respects the information set forth therein.
/s/ DELOITTE & TOUCHE LLP
Deloitte & Touche LLP
Boston, Massachusetts
July 22, 1994
12
SCHEDULE I
NEW ENGLAND BUSINESS SERVICE, INC. AND SUBSIDIARIES
MARKETABLE SECURITIES - OTHER INVESTMENTS
June 24, 1994
Amount at Which Each
Portfolio of Equity
Number of Market Value Security Issues and
Name of Issuer Shares or Units- of Each Issue Each Other Security
and Title of Principal Amount Cost of at Balance Issue Carried in
Each Issue of Bonds and Notes Each Issue Sheet Date the Balance Sheet
Industrial Development Authority Bonds $2,605,000 $ 2,605,000 $ 2,605,700 $ 2,605,000
Municipal Power Revenue Bonds 2,305,000 2,523,100 2,411,400 2,411,100
Transportation Bonds 2,275,000 2,410,600 2,354,700 2,345,100
General Obligation Notes 2,045,000 2,066,300 2,048,200 2,045,000
Housing Finance Authority
Bonds 1,990,000 2,010,500 1,996,400 1,996,900
Municipal Redevelopment Bonds 1,990,000 1,990,000 1,983,300 1,990,000
Honolulu Hawaii City & County
Refunding & Improvement - Series
1993 B Bonds, Dated 04/01/93 1,925,000 1,921,400 1,921,400 1,925,000
Variable Rate Municipal Bonds 1,500,000 1,553,400 1,523,200 1,525,000
Education Revenue Bonds 1,500,000 1,505,300 1,494,300 1,500,000
Water & Sewer Resource Bonds 1,000,000 1,106,400 1,053,200 1,021,000
Tax Exempt Mutual Fund Preferred
Shares - Van Kampen Merritt 50 2,510,900 2,510,900 2,503,100
Tax Exempt Mutual Fund Preferred
Shares - Muniyield 50 2,500,100 2,500,100 2,500,100
Tax Exempt Mutual Fund Preferred
Shares - Van Kampen Merritt
Advantage 40 2,000,000 2,000,000 2,000,000
Tax Exempt Mutual Fund Preferred
Shares - Intercapital Quality 30 1,500,000 1,500,000 1,500,000
Tax Exempt Mutual Fund Preferred
Shares - Miscellaneous 30 1,500,000 1,500,000 1,500,000
Canadian Bank Mortgage Notes 594,000 594,000 617,100 594,000
Canadian Government & Provincial
Bonds:
Maturity 6 months or less 1,182,700 1,182,700 1,245,900 1,182,700
Maturity 6 months to 12 months 2,586,900 2,586,900 2,692,000 2,586,900
Maturity over 12 months 994,100 994,100 1,021,900 994,100
Canadian Provincial Bonds 2,472,600 2,472,600 2,558,400 2,472,600
Accrued Income 334,300
Total $37,533,300 $37,538,100 $37,531,900
13
SCHEDULE V
NEW ENGLAND BUSINESS SERVICE, INC. AND SUBSIDIARIES
PROPERTY, PLANT AND EQUIPMENT
(000's Omitted)
Balance at Deductions, Balance
Beginning Additions Retirements at End
Description of Period at Cost or Sales of Period
Year Ended June 26, 1992:
Land and Buildings $ 36,660 $1,695 $ 141 $ 38,214
Equipment 53,704 7,974 1,024 60,654
Total $ 90,364 $9,669 $1,165 $ 98,868
Year Ended June 25, 1993:
Land and Buildings $ 38,214 $ 646 $1,082 $ 37,778
Equipment 60,654 5,829 1,862 64,621
Total $ 98,868 $6,475 $2,944 $102,399
Year Ended June 24, 1994:
Land and Buildings $ 37,778 $ 794 $ 155 $ 38,417
Equipment 64,621 5,260 3,233 66,648
Total $102,399 $6,054 $3,388 $105,065
14
SCHEDULE VI
NEW ENGLAND BUSINESS SERVICE, INC. AND SUBSIDIARIES
ACCUMULATED DEPRECIATION OF PROPERTY, PLANT AND EQUIPMENT
(000's Omitted)
Balance at Additions Deductions, Balance
Beginning Charged to Retirements at End
Description of Period Expenses or Sales of Period
Year Ended June 26, 1992:
Land and Buildings $14,300 $1,607 $ 141 $15,766
Equipment 32,674 6,901 1,024 38,551
Total $46,974 $8,508 $1,165 $54,317
Year Ended June 25, 1993:
Land and Buildings $15,766 $1,528 $ 150 $17,144
Equipment 38,551 7,201 1,607 44,145
Total $54,317 $8,729 $1,757 $61,289
Year Ended June 24, 1994:
Land and Buildings $17,144 $1,571 $ - $18,849
Equipment 44,145 7,646 3,266 48,525
Total $61,289 $9,217 $3,266 $67,374
15
SCHEDULE VIII
NEW ENGLAND BUSINESS SERVICE, INC. AND SUBSIDIARIES
VALUATION AND QUALIFYING ACCOUNTS
(000's Omitted)
Additions
Balance at Charged Deductions Balance at
Beginning Charged to Other from End of
of Period to Income Accounts(1) Reserves(2) Period
Reserves deducted from assets to which
they apply:
For doubtful accounts receivable:
Year ended June 26, 1992 $3,134 $3,336 $105 $3,439 $3,136
Year ended June 25, 1993 3,136 2,815 30 3,037 2,944
Year ended June 24, 1994 2,944 2,799 - 2,731 3,012
For sales returns and allowances:
Year ended June 26, 1992 628 593 - 628 593
Year ended June 25, 1993 593 779 - 593 779
Year ended June 24, 1994 779 1,078 - 779 1,078
Recovery of accounts previously written off.
Accounts written off.
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SCHEDULE IX
NEW ENGLAND BUSINESS SERVICE, INC. AND SUBSIDIARIES
SHORT-TERM BORROWINGS
Amounts Weighted
Balance Outstanding Average
at End Weighted During the Period Interest Rate
Line of Credit, of the Average During the
Year Ended Period Interest Rate Maximum Average(1) Period(2)
(000's
Omitted) (000's Omitted)
June 24, 1994 - - - - -
June 25, 1993 - - - - -
June 26, 1992 - - $10,000 $833 0.6%
The average amount outstanding during the year was
determined based upon the amounts outstanding at each month end.
The weighted average interest rate for the fiscal year
1992 was calculated by dividing actual interest expense on short-
term borrowings by average month-end amounts outstanding in each
year.
17
SCHEDULE X
NEW ENGLAND BUSINESS SERVICE, INC. AND SUBSIDIARIES
SUPPLEMENTARY INCOME STATEMENT INFORMATION
(000's Omitted)
Year Ended
June 24, June 25, June 26,
1994 1993 1992
Charged to Costs and Expenses:
Maintenance and Repairs $4,501 $5,297 $4,879
Advertising Costs (see Statements of Consolidated Income)
18