Since the 30's, steady growth...
The Crash nearly finished us. Above,
the team that helped Grant Simmons, Sr.
put the company back on its feet.
once more a profitable company
and we have remained profitable
ever since.
During World War II, the same
management team led the company
through the difficult conversion to
war production. We made a broad
variety of military items, from shells
to parachutes to tents, and three of
our factories were awarded the
Army/Navy "E."
After the war, Simmons flourished
with the post war boom. Our newest
product, the Hide-A-Bed Sofa, made
its spectacular debut. By the time
Grant Simmons, Sr. retired in 1957,
our corporate net worth was
$56,11 4,09-just double what it
was when he took over. And we had
matured into a truly national
company with a national
management, and a sound financial
base.
Our story of money would not be
complete without mention of our
wholly owned financial subsidiary,
The American Acceptance
Corporation. Formed in 1931 to
factor for our textile mills, it was
soon helping certain good-risk
dealers finance larger carload
orders with recourse to Simmons
parent. This "with recourse"
wholesale credit business has grown.
Today, American Acceptance has
many customers making a broad
array of products from rugs to air
conditioners to boats. Less than ten
percent of its total is now Simmons
business.
Your present management is
especially proud of the profit record
for the years of its stewardship. In
... consistent dividends...
1968, a net income of $8,551,000
plus depreciation of $3,482,000
gave Simmons a positive cash flow
of $12,033,000. It should be
pointed out that most of our
acquisitions, both domestic and
foreign, were purchased out of
normal cash flow rather than by
issuing new shares of stock. Further,
in those cases where stock has been
the vehicle for financing an
acquisition, there has been no
dilution of earnings per share. This
program has produced a constant
growth in each shareholder's equity.
... a fair profit.
We are also proud of our
dividend record. Our policy has
been to pay between 50 and 70
percent of earnings after taxes as
cash dividends to our stockholders.
We believe our quarterly dividends
should be stable and less subject to
fluctuation than our earnings. Hence,
our use of the year-end extra
dividend as a means of carrying out
our dividend distribution policy.
Certainly this money story is
sometimes magnificent, often great,
always very fair.