WISCONSIN
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001-7635
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39-0667110
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(State or other jurisdiction
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(Commission
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(IRS Employer
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of incorporation)
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File Number)
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Identification No.)
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[ ]
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ]
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ]
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[ ]
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02
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Results of Operations and Financial Condition
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Votes For
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Percent(1)
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Votes Withheld
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Percent(1)
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Broker Non-Votes
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Michael E. Batten
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8,582,488
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96.99%
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266,466
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3.01%
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1,516,463
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Michael Doar
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8,577,449
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96.93%
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271,505
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3.07%
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1,516,463
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David R. Zimmer
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8,565,964
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96.80%
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282,990
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3.20%
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1,516,463
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Votes For
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Votes Against
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Abstentions
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Broker Non-Votes
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Number of
Votes Cast:
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7,980,322
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272,519
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595,512
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1,516,463
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1 Year
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2 Years
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3 Years
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Abstentions
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Broker Non-Votes
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Number of
Votes Cast:
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7,687,674
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138,925
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383,161
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639,193
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1,516,463
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Votes For
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Votes Against
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Abstentions
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Number of
Votes Cast:
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10,212,028
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86,302
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67,306
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(1)
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Percentages shown for election of Directors (Proposal No. 1) are based on totals of votes cast for and votes withheld from each indicated Director. Abstentions and broker non-votes were not considered as part of the totals on which percentages were based.
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Item 7.01
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Regulation FD Disclosure
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Item 9.01
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Financial Statements and Exhibits
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(c)
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Exhibits
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EXHIBIT NUMBER
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DESCRIPTION
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99.1
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Press Release announcing first quarter 2012 financial results.
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Date: October 25, 2011
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Twin Disc, Inc.
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_/s/ THOMAS E. VALENTYN
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Thomas E. Valentyn
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General Counsel & Secretary
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· Fiscal 2012 First Quarter Record Net Earnings of $0.83 per Diluted Share
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· Fiscal 2012 First Quarter Sales Up 32.5% Year-Over-Year
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· Six-Month Backlog Up 12.0% Sequentially to an All-Time Record
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· Management Optimistic For Fiscal 2012
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(In thousands, except per-share data; unaudited)
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||||||||
Three Months Ended
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||||||||
September 30,
2011
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September 24,
2010
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|||||||
Net sales
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$ | 81,330 | $ | 61,395 | ||||
Cost of goods sold
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50,562 | 41,372 | ||||||
Gross profit
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30,768 | 20,023 | ||||||
Marketing, engineering and
administrative expenses
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15,909 | 14,777 | ||||||
Earnings from operations
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14,859 | 5,246 | ||||||
Interest expense
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359 | 439 | ||||||
Other (income) expense, net
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(394 | ) | 554 | |||||
Earnings before income
taxes and noncontrolling interest
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14,894 | 4,253 | ||||||
Income taxes
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5,259 | 1,556 | ||||||
Net earnings
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9,635 | 2,697 | ||||||
Less: Net earnings attributable to noncontrolling
interest, net of tax
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(54 | ) | (41 | ) | ||||
Net earnings attributable to Twin Disc
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$ | 9,581 | $ | 2,656 | ||||
Earnings per share:
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||||||||
Basic earnings per share attributable to
Twin Disc common shareholders
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$ | 0.84 | $ | 0.24 | ||||
Diluted earnings per share attributable to
Twin Disc common shareholders
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$ | 0.83 | $ | 0.24 | ||||
Weighted average shares outstanding:
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||||||||
Basic
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11,396 | 10,882 | ||||||
Diluted
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11,541 | 11,100 | ||||||
Dividends per share
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$ | 0.08 | $ | 0.07 | ||||
Comprehensive income:
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||||||||
Net earnings
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$ | 9,635 | $ | 2,697 | ||||
Other comprehensive income:
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||||||||
Foreign currency translation adjustment
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(2,275 | ) | 7,395 | |||||
Benefit plan adjustments, net
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474 | 553 | ||||||
Comprehensive income
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7,834 | 10,645 | ||||||
Comprehensive income attributable to
noncontrolling interest
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(54 | ) | (41 | ) | ||||
Comprehensive income attributable to
Twin Disc
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$ | 7,780 | $ | 10,604 |
RECONCILIATION OF CONSOLIDATED NET EARNINGS TO EBITDA
(In thousands; unaudited)
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||||||||
Three Months Ended
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||||||||
September 30,
2011
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September 24,
2010
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|||||||
Net earnings attributable to Twin Disc
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$ | 9,581 | $ | 2,656 | ||||
Interest expense
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359 | 439 | ||||||
Income taxes
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5,259 | 1,556 | ||||||
Depreciation and amortization
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2,573 | 2,272 | ||||||
Earnings before interest, taxes,
depreciation and amortization
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$ | 17,772 | $ | 6,923 |
CONDENSED CONSOLIDATED BALANCE SHEETS
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||||||||
(In thousands; unaudited)
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||||||||
September 30,
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June 30,
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|||||||
2011
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2011
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|||||||
ASSETS
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||||||||
Current assets:
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||||||||
Cash
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$ | 24,698 | $ | 20,167 | ||||
Trade accounts receivable, net
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60,216 | 61,007 | ||||||
Inventories, net
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104,976 | 99,139 | ||||||
Deferred income taxes
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5,097 | 5,765 | ||||||
Other
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8,536 | 9,090 | ||||||
Total current assets
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203,523 | 195,168 | ||||||
Property, plant and equipment, net
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66,940 | 65,791 | ||||||
Goodwill, net
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18,063 | 17,871 | ||||||
Deferred income taxes
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13,642 | 16,480 | ||||||
Intangible assets, net
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6,336 | 6,439 | ||||||
Other assets
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7,926 | 7,371 | ||||||
TOTAL ASSETS
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$ | 316,430 | $ | 309,120 | ||||
LIABILITIES AND EQUITY
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||||||||
Current liabilities:
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||||||||
Short-term borrowings and current maturities of long-term debt
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$ | 3,867 | $ | 3,915 | ||||
Accounts payable
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34,997 | 38,372 | ||||||
Accrued liabilities
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38,301 | 41,673 | ||||||
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||||||||
Total current liabilities
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77,165 | 83,960 | ||||||
Long-term debt
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36,940 | 25,784 | ||||||
Accrued retirement benefits
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47,981 | 50,063 | ||||||
Deferred income taxes
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4,170 | 4,170 | ||||||
Other long-term liabilities
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4,286 | 7,089 | ||||||
Total liabilities
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170,542 | 171,066 | ||||||
Twin Disc shareholders’ equity:
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||||||||
Common stock authorized: 30,000,000;
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||||||||
Issued: 13,099,468; no par value
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11,079 | 10,863 | ||||||
Retained earnings
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171,524 | 162,857 | ||||||
Accumulated other comprehensive loss
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(13,200 | ) | (11,383 | ) | ||||
169,403 | 162,337 | |||||||
Less treasury stock, at cost
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||||||||
(1,679,767 and 1,739,574 shares, respectively)
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24,499 | 25,252 | ||||||
Total Twin Disc shareholders' equity
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144,904 | 137,085 | ||||||
Noncontrolling interest
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984 | 969 | ||||||
Total equity
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145,888 | 138,054 | ||||||
TOTAL LIABILITIES AND EQUITY
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$ | 316,430 | $ | 309,120 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands; unaudited)
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||||||||
Three Months Ended
|
||||||||
September 30,
2011
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September 24,
2010
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|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
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||||||||
Net earnings
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$ | 9,635 | $ | 2,697 | ||||
Adjustments to reconcile net earnings to net cash provided
|
||||||||
(used) by operating activities:
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||||||||
Depreciation and amortization
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2,573 | 2,272 | ||||||
Other non-cash changes, net
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2,950 | 1,713 | ||||||
Net change in working capital,
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||||||||
excluding cash
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(16,354 | ) | (2,601 | ) | ||||
Net cash (used) provided by operating activities
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(1,196 | ) | 4,081 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES:
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||||||||
Acquisitions of fixed assets
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(3,587 | ) | (1,247 | ) | ||||
Proceeds from sale of fixed assets
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- | 49 | ||||||
Other, net
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(293 | ) | (293 | ) | ||||
Net cash used by investing activities
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(3,880 | ) | (1,491 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES:
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||||||||
Proceeds from notes payable
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- | 18 | ||||||
Principal payments of notes payable
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(53 | ) | (42 | ) | ||||
Proceeds from long-term debt
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11,164 | 1,695 | ||||||
Proceeds from exercise of stock options
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169 | 71 | ||||||
Dividends paid to shareholders
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(914 | ) | (792 | ) | ||||
Dividends paid to noncontrolling interest
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(130 | ) | (138 | ) | ||||
Other
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(185 | ) | 132 | |||||
Net cash provided by financing activities
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10,051 | 944 | ||||||
Effect of exchange rate changes on cash
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(444 | ) | 558 | |||||
Net change in cash
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4,531 | 4,092 | ||||||
Cash:
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||||||||
Beginning of period
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20,167 | 19,022 | ||||||
End of period
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$ | 24,698 | $ | 23,114 |