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ANNUAL  STATEMENT

Manhattan Electrical Supply Company. Inc.
december 31. 1929
 

March 6, 1930.
 

To the Stockholders:
 

I submit Balance Sheet and Income Account of your Company for the year ended December
31st, 1929.

Earnings for the year amounted to $326,219.01 as compared with a loss of $742,305.97 in the
previous year. Taking into consideration the substantial amounts spent on engineering development
and on the reorganization of one of your subsidiaries, all of which expenses have been absorbed as
incurred, this result is all the more gratifying.

You will recall that profits for the first six months were $67,093.70. The profits for the third
quarter were $178,509.71, and it was confidently expected that profits for the last quarter would be
equal to those of the first nine months. The depression, however, greatly aiTected the sales of your
subsidiaries, as it did those of most manufacturers, so that, after inventory write-offs, profits amount¬
ing to $80,615.60 were made.

In consonance with its policy of maintaining clean inventories, further generous write-offs have
been made and the Company can now assure its stockholders, after having written off $2,117,621.26

since November, 1926, the time when the present management came into office, that its inventories are
clean and further write-offs will not be necessary.

The consolidated balance sheet again shows an improvement with total current assets of
$5,723,281.38 and current liabilities of $791,901.86, a ratio of 7.22 to 1, as compared with a ratio of
5.28 to 1 in 1928. The financial condition of the Company has been further improved by a reduction
of $268,500.00 during the year in its bonded indebtedness. In previous letters to stockholders, refer¬
ence has been made to the policy of charging off items of deferred expense, and the amount of
$473,677.13 of bond discount and expense has been written off during the past year.

While the depression felt during November and December was severe, a decided improvement
is making itself felt at this time, and there is no doubt in the mind of the management that the out¬
come for the future is encouraging.

Respectfully submitted.

By order of the Board of Directors,

RICHARD H. BROWN, President.