Simmons second century
A story of money
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.
This material may be protected by copyright law (e.g., Title 17, US Code)