Evening journal., 1921-02-08
ATLAS POWDER
HAD Big YEAR
Earned Nearly 35 Pct. for
Common Stock Before
Adjusting Inventories
10 PER CENT. AFTER
SETTING LOW VALUES


That the Atlas Powder Company
earned 3l.y0 per cent. for its common
stock In 1920 before adjusting its mate
rials inventory TO the debated mar
set value and 1922 per cent. on the
common stock after such inventory
adjustment is shown in the annual re-
port OF w. j. Webster, president Of the
cUmpanly, made public today.
Gross sales for the year amounted
to 2i,393, ,J6S63," says the report Of
President Webster met operating
income after all charges incident 10
manufacture and selling, repairs, dcci-
dents, depreciation Of properties, ordi-
nary and Federal taxes, and before in
ventory adjustment, represents a re-
turn or 3.y0 per cent. for common
stock, after paying g per cent dividend
on outstanding preferred stock. Busi-
ness transacted in our entire field OF
/ explosives, explosives supplies. chem
icals, lacquers and leather cloth, dur
ing the last quarter of the year was
small in comparison with the first nine
months. our inventory OF raw mate
rials was Larger than usual as d result
OF the low volume Of sales toward the
close Of the year. Due TO deilatiOn
generally prevailing, there was a de
cidcd sllrinkage in inventory values.
We have written our December 81,
1920, raw materials inventory down to
market values. This represents an
amonnt OF 81 052 ,i02.0S. After making
/ this inventory adjustment, net income
/ represents a return Of 1922 per cent.
/ for common stock, after paying 6 per
cent. dividend on outstanding pre-
ferred stock.
I'VE have adhered TO our usual
custom Of setting aside from earnings,
ample reserves to provide against loss
from bad debts, accidents at plants,
depreciation OF plant values, etc.
1 1--WE continue TO operate Research,
Development and Experimental Labor
atOries TO maintain the highest STAN
dard or quality of our present pro-
ducts and during the year we succeed
ed in developing and marketing i'm
proved explosives and investigated
many operations in affiliated lines,
with view Of developing advantag-
Gus fields for The use Of our organi-
zation
dividends on the per cent. cumu-
htive preferred stock have been paid
regularly. Dividends on the common
stock Irregular and eXtra) have been
paid as follows: 1913, ~ per cent.
1914, per cent; 1918, 1iia per cent.
1916. % per cent; 1917, 26 per cent
1918, 81 per cent; 1919, II per cent.
1920, II per cent, 1870, (stO0k diyi-
dend), 10 per cent
Common stock dividends, payable
in common stock Of the company
were declared payable in September
1870, and December, 1920. consisting
Of per cent. each. These distribu-
tiOns We're considered proper in view
OF the surplus accumulated since or.
ganizatiOn OF the company in 1918
Regular cash dividends on common
: stock were established on pc
cent annual basis in December, 1913
increased TO an s per cent. annua
, basis in March, 1916, and later in
/ creased to a ~ per cent, annual basi
4 in March, 1919, which was maintalnei
throughout
"1he Authorized capital stock O
= The company remains at S20O0OOo
4 consisting OF SlO000OOO par value
! per cent. cumulative preferred stocl
) and SiOOO0OO0 par value common
3 stock. There is now outstanding 80.
= 100000 par value 6 per cent. cumula
, tive preferred stock and S5,Ji4,625 pa
value common stock. The outstandn,
q common stock was increased SJi2 %
7 and the undistributed profits CORES
; poidingly reduced by his amour
. through the payment Of common
stock dividends previously referre,
J TO.
3 stock Of The company has been Of
, tered to its employees annually sincl
- 1913 under a monthly payment sub
b scrption plan. This plan was inaugu
b rated TO encourage and enable EN-
ployes TO become stockholders in tn,
company, and has been so We'll re
ceiNed that 99S employees OF The grani
: total Of 2i79 employed as OF Decembe
3 81, 1920, are stockholders. The com
I pany has a total Of 303i stockhold
/ ors.
s stock bonus, service wage and pen
r sion plans inaugurated in 1913. re
main In effect.
4 Books and records OF The compan-
n have been audited by the Audit Com
2 mny OF New York. certified publi
y accountants OF New York. and thei
g certlaate. together with general bal
} ance sheet and related summary OF in
o come and profit and loss. Is appende,
Z hereto. Respectfully submitted
ATLAS POWDER COMPANY.
w. J. Webster president"
SUMMARY OF INCOME AND pROFI
= = DECEME
M Gross sales Observation-Disclosures.
Z. Cost or goods sold, delivery and 9th
Net operating profit .............
Other income net ................
1r Net operating income for the year q.
Of Adjustment Of raw materials invento
h.
Net income for The year ...........
Undistrihuted profits beginning Of y
= amount available for dividends or
Dividends:
, Preferred