-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Bk/u+w9j0TI3DRnuzaBxAX1Vre4Mf8+nX10YX7EIijODHK7/xDKzj8L+LAi8RXGh WwXta3Dq3mkcmG1ByHb3IQ== 0000891554-01-506428.txt : 20020411 0000891554-01-506428.hdr.sgml : 20020411 ACCESSION NUMBER: 0000891554-01-506428 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010930 FILED AS OF DATE: 20011119 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CTI INDUSTRIES CORP CENTRAL INDEX KEY: 0001042187 STANDARD INDUSTRIAL CLASSIFICATION: FABRICATED RUBBER PRODUCTS, NEC [3060] IRS NUMBER: 362848943 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-23115 FILM NUMBER: 1795682 BUSINESS ADDRESS: STREET 1: 22160 N PEPPER RD CITY: BARRINGTON STATE: IL ZIP: 60010 MAIL ADDRESS: STREET 1: 22160 N PEPPER RD CITY: BARRINGTON STATE: IL ZIP: 60010 10QSB 1 d27434_10qsb.txt QUARTERLY REPORT FORM 10-QSB SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2001 Commission File No. 000-23115 CTI INDUSTRIES CORPORATION (Exact name of registrant as specified in its charter) Delaware 36-2848943 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 22160 North Pepper Road, Barrington, Illinois 60010 (Address of principal executive offices) (Zip Code) (847) 382-1000 (Registrant's telephone number, including area code) Registrant has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and has been subject to such filing requirements for the past 90 days. APPLICABLE ONLY TO CORPORATE ISSUERS: COMMON STOCK, $.195 par value, 841,644 outstanding Shares and CLASS B COMMON STOCK, $2.73 par value, 366,300 outstanding Shares, as of September 30, 2001. 1 Part I. FINANCIAL INFORMATION Item 1. Financial Statements The following consolidated financial statements of the Registrant are attached to this Form 10-QSB: 1. Interim Balance Sheet as of September 30, 2001 and Balance Sheet as of December 31, 2000. 2. Interim Statements of Operations for the three and nine month periods ending September 30, 2001, and September 30, 2000. 3. Interim Statements of Cash Flows for the nine month periods ending September 30, 2001 and September 30, 2000. The Financial Statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of results for the periods presented. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation Results of Operations Net Sales. For the fiscal quarter ended September 30, 2001, net sales were $6,808,000, compared to net sales of $4,891,000 for the three months ended September 30, 2000, an increase of 39%. Net sales for the first nine months of fiscal 2001 increased 13% to $19,765,000, compared to net sales of $17,477,000 for the nine months ended September 30, 2000. This increase is attributable primarily to an increase in sales of laminated, specialty and printed films of 84% compared to the same period of the prior year. Cost of Sales. For the fiscal quarter ended September 30, 2001, cost of sales decreased to 71% of net sales as compared to 72% of net sales in the three month period ended September 30, 2000. Cost of goods sold was 72.7% of net sales for the first nine months of fiscal 2001, compared to 69% for the nine month period ended September 30, 2000, reflecting a change in the product mix and margins on certain products for that period. Administrative. For the fiscal quarter ended September 30, 2001, administrative expenses were $857,000, or 12.6% of net sales as compared to $815,000, or 16.6% of net sales for the three month period ended September 30, 2000. For the first nine months of fiscal 2001, administrative expenses were $2,422,000, or 12.3% of net sales as compared to $2,530,000, or 14.5% of net sales for the nine month period ended September 30, 2000. Selling. For the fiscal quarter ended September 30, 2001, selling expenses were $492,000 or 7.2% of net sales, as compared to $382,000, or 7.2% of net sales for the three month period ended September 30, 2000. For the first nine months of fiscal 2001, selling expenses were $1,363,000, or 6.9% of net sales as compared to $1,460,000, or 8.4% of net sales for the three month period ended September 30, 2000. 2 Advertising and Marketing. For the fiscal quarter ended September 30, 2001, advertising and marketing expenses were $296,000, or 4.3% of net sales as compared to $277,000, or 5.7% of net sales in the three month period ended September 30, 2000. For the first nine months of fiscal 2001, advertising and marketing expenses were $874,000, or 4.4% of sales as compared to $902,000, or 5.2% of net sales for the nine month period ended September 30, 2000. Other Income or Expense. Interest expense decreased to $216,000 for the quarter ended September 30, 2001, as compared to $238,000 for the three month period ended September 30, 2000. Interest expense increased to $758,000 for the nine months ended September 30, 2001, as compared to $704,000 for the nine month period ended September 30, 2000. The increase in interest expense for the nine month period is attributable to a higher overall level of borrowings. Net Income or Loss. For the fiscal quarter ended September 30, 2001, the Company incurred a loss before taxes and minority interest of $32,000 as compared to a loss before taxes and minority interest of $313,000 for the three month period ended September 30, 2000. Income tax expense for the third quarter of fiscal 2001 was $2,000, resulting in a net loss (after provision for minority interest) of $14,000. The income tax expense for the three month period ended September 30, 2000 was ($158,000), resulting in a net loss (after provision for minority interest) of $156,000. For the nine months ended September 30, 2001, the net loss was $88,000, as compared to a net loss of $301,000 for the nine month period ended September 30, 2000. Financial Condition Liquidity and Capital Resources. Cash flow used in operations during the nine months ended September 30, 2001 was $853,000, which was affected by increases in both accounts receivable and inventory resulting from increased sales volume and a decrease in the amount of depreciation expense. During the nine month period ended September 30, 2000, cash flows provided by operations were $1,399,000. Investment Activities. During the nine months ended September 30, 2001, cash flow used in investing activities for the purchase of machinery and equipment was $682,000. In the nine month period ended September 30, 2000, $1,396,000 was used in investing activities, primarily for the purchase of an interest in CTI Mexico. Financing Activities. For the nine months ended September 30, 2001, cash flow provided by financing activities was $1,248,000. The primary source of this cash flow was the net proceeds from new long-term indebtedness (offset by the payment of prior indebtedness) as well as an increase in the amount advanced under the Company's revolving line of credit. Cash flow provided by financing activities for the nine month period ending September 30, 2000 was $195,000, resulting primarily from the repayment of long term debt. At September 30, 2001, the Company had a cash balance of $237,000. The Company's current cash management strategy includes maintaining minimal cash balances and utilizing the revolving line of credit for liquidity. At December 31, 2000, the Company had cash and cash equivalents of $338,000. At September 30, 2001, the Company had a working capital deficit of ($338,000), and at December 31, 2000, a working capital deficit of ($3,862,000). 3 The Company believes that existing capital resources and cash generated from operations will be sufficient to meet the Company's requirements for at least 12 months. Seasonality. In the metallized ballooon product line, sales have historically been seasonal, with approximately 20% to 27% of annual sales of metallized balloons being generated in December and January and 11% to 13% of annual mylar sales being generated in June and July in recent years. The sale of latex balloons and laminated film products have not historically been seasonal. As sales of latex balloons and laminated film products have increased in relation to sales of metallized balloons, the effect of this seasonality has been reduced. Safe Harbor Provision of the Private Securities Litigation Act of 1995 and Forward Looking Statements. The Company operates in a dynamic and rapidly changing environment that involves numerous risks and uncertainties. The market for foil and latex balloon products is generally characterized by intense competition, frequent new product introductions and changes in customer tastes which can render existing products unmarketable. The statements contained in Item 2 (Management's Discussion and Analysis of Financial Condition and Results of Operation) that are not historical facts may be forward-looking statements (as such term is defined in the rules promulgated pursuant to the Securities Exchange Act of 1934) that are subject to a variety of risks and uncertainties more fully described in the Company's filings with the Securities and Exchange Commission including, without limitation, those described under "Risk Factors" in the Company's Form SB-2 Registration Statement (File No. 333-31969) effective November 5, 1997. The forward-looking statements are based on the beliefs of the Company's management, as well as assumptions made by, and information currently available to the Company's management. Accordingly, these statements are subject to significant risks, uncertainties and contingencies which could cause the Company's actual growth, results, performance and business prospects and opportunities in 2001 and beyond to differ materially from those expressed in, or implied by, any such forward-looking statements. Wherever possible, words such as "anticipate," "plan," "expect," "believe," "estimate," and similar expressions have been used to identify these forward-looking statements, but are not the exclusive means of identifying such statements. These risks, uncertainties and contingencies include, but are not limited to, the Company's limited operating history on which expectations regarding its future performance can be based, competition from, among others, national and regional balloon, packaging and custom film product manufacturers and sellers that have greater financial, technical and marketing resources and distribution capabilities than the Company, the availability of sufficient capital, the maturation and success of the Company's strategy to develop, market and sell its products, risks inherent in conducting international business, risks associated with securing licenses, changes in the Company's product mix and pricing, the effectiveness of the Company's efforts to control operating expenses, general economic and business conditions affecting the Company and its customers in the United States and other countries in which the Company sells and anticipates selling its products and services and the Company's ability to (i) adjust to changes in technology, customer preferences, enhanced competition and new competitors; (ii) protect its intellectual property rights from infringement or misappropriation; (iii) maintain or enhance its relationships with other businesses and vendors; and (iv) attract and retain key employees. There can be no assurance that the Company will be able to identify, develop, market, sell or support new products successfully, that any such new products will gain market acceptance, or that the Company will be able to respond effectively to changes in customer preferences. There can be no assurance that the Company will not encounter technical or other difficulties that could delay introduction of new or updated products 4 in the future. If the Company is unable to introduce new products and respond to industry changes or customer preferences on a timely basis, its business could be materially adversely affected. The Company is not obligated to update or revise these forward-looking statements to reflect new events or circumstances. Part II. OTHER INFORMATION Item 1. Legal Proceedings During the quarter, the Company was served as a third-party defendant in a pending action filed by RealFresh, Inc., a California corporation, ("RealFresh") against Packaging Systems, LLC, an Illinois limited liability company ("PSI"). In the action, RealFresh seeks damages from PSI for losses it claims it incurred by reason of PSI supplying defective packaging materials. The Company was a supplier to PSI of certain films utilized by PSI in these packaging materials. PSI initiated a third-party claim against the Company for indemnity, contribution and breach of contract. The Company believes the third-party claim against it is without merit and intends to maintain a vigorous defense. The Company has notified its insurance carrier of the claim. Final outcome of this matter is uncertain, and a range of loss (beyond any claims that may be covered by insurance) cannot reasonably be estimated at this time. Item 2. Changes in Securities Not applicable. Item 3. Defaults Upon Senior Securities Not applicable. Item 4. Submission of Matters to a Vote of Security Holders Not applicable. Item 5. Other Information Not applicable. 5 Item 6. Exhibits and Reports on Form 8-K (a) Exhibits* No. Statement re: Computation of Per Share Earnings 11 (b) The Company has not filed a Current Report on Form 8-K during the quarter covered by this report. * Also incorporated by reference the Exhibits filed as part of the SB-2 Registration Statement of the Registrant, effective November 5, 1997, and subsequent periodic filings. 6 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Dated: November 19, 2001 CTI INDUSTRIES CORPORATION By: /s/ Stephen M. Merrick ------------------------------------ Stephen M. Merrick Executive Vice President and Chief Financial Officer 7 CTI Industries Corporation and Subsidiaries Consolidated Statements of Cash Flows
For the nine months ended September 30 2001 2000 (Unaudited) (Unaudited) ----------- ----------- Cash flows from operating activities: Net loss $ (87,887) $ (369,687) Adjustment to reconcile net loss to cash $ -- $ -- provided by operating activities: $ -- $ -- Depreciation and amortization $ 1,106,493 $ 1,507,591 Equity in loss of subsidiary and joint venture $ -- $ -- Minority interest in loss of subsidiary $ 21,114 $ 336 Gain on sale of fixed assets $ (22,534) $ (7,512) Provision for losses on accounts receivable & inventory $ 50,000 $ 50,000 Deferred income taxes $ -- $ -- Change in assets and liabilities: $ -- $ -- Accounts receivable $(1,833,704) $ (365,413) Inventory $(1,416,596) $ (447,801) Other assets $ 548,803 $ 544,705 Accounts payable and accrued expenses $ 781,149 $ 487,174 ----------- ----------- Net cash (used in) provided by operating activities (853,162) 1,399,393 Cash flows from investing activities: Proceeds from sale of property and equipment $ -- $ 182,928 Purchases of property and equipment $ (682,135) $ (28,811) Investment in and advances to CTI Mexico $ -- $ -- Acquisition of CTF International $ -- $ -- Cash acquired in acquisition of CTI Mexico $ -- $ -- Purchase additional interest in CTI Mexico $ -- $(1,550,510) ----------- ----------- Net cash used in investing activities (682,135) (1,396,393) Cash flows from financing activities: Net change in revolving line of credit $ 1,469,728 $ 39,213 Proceeds from issuance of long-term debt $ 5,296,264 $ 900,000 Proceeds from issuance of short-term debt $ -- $ -- Repayment of long-term debt $(4,577,989) $ (669,230) Repayment of short-term debt $ (930,000) $ -- Repayment of subordinated debt $ (10,000) $ (75,000) Purchase of treasury stock $ -- $ -- ----------- ----------- Net cash provided by financing activities 1,248,003 194,983 Effect of exchange rate changes on cash $ 131,596 $ 10,105 ----------- ----------- Net (decrease) increase in cash (155,698) 208,088 Cash and Equivalents at Beginning of Period $ 392,534 $ 130,103 ----------- ----------- Cash and Equivalents at End of Period $ 236,836 $ 338,191 =========== ===========
CTI Industries Corporation and Subsidiaries Consolidated Balance Sheets
September 30, 2001 December 31, 2000 ------------------ ----------------- (Unaudited) (Audited) ------------------ ----------------- ASSETS Current assets: Cash $ 236,836 $ 392,534 Accounts receivable (less allowance for doubtful accounts of $353,065 and $312,572 at September 30, 2001 and December 31, 2000, respectively) $ 4,588,691 $ 2,573,577 Inventories $ 8,136,124 $ 7,060,996 Deferred tax assets $ 208,926 $ 65,700 Other $ 534,513 $ 659,371 ------------ ------------ Total current assets $ 13,705,090 $ 10,752,178 Property and equipment: Machinery and equipment $ 14,117,067 $ 13,472,187 Building $ 2,388,229 $ 2,370,644 Office furniture and equipment $ 1,634,343 $ 1,652,823 Land $ 250,000 $ 250,000 Leasehold improvements $ 161,885 $ 161,885 Fixtures and equipment at customer locations $ 2,202,742 $ 2,202,743 Projects under construction $ 517,325 $ 405,748 ------------ ------------ $ 21,271,591 $ 20,516,030 Less: accumulated depreciation $(12,335,266) $(11,342,792) ------------ ------------ Total property and equipment, net $ 8,936,325 $ 9,173,238 Other assets: Deferred financing costs, net $ 94,964 $ 11,412 Goodwill associated with acquisition of CTI Mexico, net $ 1,134,773 $ 1,199,771 Deferred tax assets $ 649,134 $ 812,591 Other assets $ 326,629 $ 269,600 ------------ ------------ Total other assets $ 2,205,500 $ 2,293,374 ------------ ------------ TOTAL ASSETS $ 24,846,915 $ 22,218,790 ============ ============
See accompanying notes CTI Industries Corporation and Subsidiaries Consolidated Balance Sheets
September 30, 2001 December 31, 2000 ------------------ ----------------- (Unaudited) (Audited) ------------ ------------ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 5,982,568 $ 5,045,773 Line of credit $ 5,079,269 $ 3,609,541 Notes payable - current portion $ 953,595 $ 4,176,934 Accrued liabilities $ 2,027,337 $ 1,781,984 ------------ ------------ Total current liabilities $ 14,042,769 $ 14,614,232 Long-term liabilities: Other liabilities $ 1,434,205 $ 802,596 Notes payable $ 3,832,590 $ 1,301,022 Subordinated debt $ 472,367 $ 496,640 ------------ ------------ Total long-term liabilities $ 5,739,162 $ 2,600,258 Redeemable common stock $ -- $ -- Minority interest $ 217,673 $ 238,787 Stockholders' equity: Common stock - $.195 par value, 5,000,000 shares authorized, 966,327 shares issued, 841,644 shares outstanding $ 188,434 $ 188,434 Class B Common stock - $2.73 par value, 500,000 shares authorized, 366,300 shares issued and outstanding $ 1,000,000 $ 1,000,000 Paid-in-capital $ 5,554,332 $ 5,554,332 Warrants issued in connection with subordinated debt $ 242,633 $ 228,360 Accumulated deficit $ (1,467,145) $ (1,526,829) Accumulated other comprehensive earnings $ (34,403) $ (42,244) Less: Treasury stock -- 124,683 shares $ (575,384) $ (575,384) Stock subscription receivable $ (4,700) $ (4,700) Notes receivable from stockholders $ (56,456) $ (56,456) ------------ ------------ Total stockholders' equity $ 4,847,311 $ 4,765,513 ------------ ------------ TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 24,846,915 $ 22,218,790 ============ ============
See accompanying notes CTI Industries Corporation and Subsidiaries Consolidated Statements of Operations
Quarter ended September 30 Year to Date September 30 2001 2000 2001 2000 (Unaudited) (Unaudited) (Unaudited) (Unaudited) ---------------------------- ------------------------------ Net Sales $ 6,807,731 $ 4,890,866 $ 19,764,506 $ 17,476,732 Cost of Sales 4,850,569 3,523,455 14,376,770 12,064,510 ---------------------------- ------------------------------ Gross profit on sales 1,957,162 1,367,411 5,387,736 5,412,222 Operating expenses: Administrative 856,827 798,609 2,422,016 2,513,715 Selling 492,183 382,346 1,363,034 1,460,298 Advertising and marketing 295,809 277,352 874,119 901,973 ---------------------------- ------------------------------ Total operating expenses 1,644,819 1,458,307 4,659,169 4,875,986 ---------------------------- ------------------------------ Income (loss) from operations 312,343 (90,896) 728,567 536,236 Other income (expense): Interest expense (215,674) (238,199) (757,959) (704,243) Interest income (0) 1,104 742 12,439 Gain on sale of assets 7,512 -- 22,534 7,512 Other (136,606) 14,933 (87,612) (231,135) ---------------------------- ------------------------------ Total other income (expense) (344,768) (222,162) (822,295) (915,427) ---------------------------- ------------------------------ Loss before income taxes and minority interest (32,425) (313,058) (93,728) (379,191) Income tax expense (benefit) 2,163 (158,444) 15,273 (78,235) ---------------------------- ------------------------------ Loss before minority interest (34,588) (154,614) (109,001) (300,957) Minority interest in profit (loss) of subsidiary (20,093) 1,870 (21,114) 336 ---------------------------- ------------------------------ Net Profit (Loss) $ (14,495) $ (156,484) $ (87,887) $ (301,293) ============================ ============================== Income (loss) applicable to common shares $ (14,495) $ (156,484) $ (87,887) $ (301,293) ============================ ============================== Basic income (loss) per common and common equivalent shares $ (0.01) $ (0.13) $ (0.07) $ (0.25) ============================ ============================== Diluted income (loss) per common and common equivalent shares $ (0.01) $ (0.13) $ (0.07) $ (0.23) ============================ ============================== Weighted average number of shares and equivalent shares of common stock outstanding: Basic 1,207,944 1,207,944 1,207,944 1,207,944 ============================ ============================== Diluted 1,207,944 1,207,944 1,207,944 1,315,442 ============================ ==============================
See accompanying notes September 30, 2001 Note 1 - Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-QSB and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the nine month period ended September 30, 2001 are not necessarily indicative of the results that may be expected for the year ended December 31, 2001. For further information, refer to the consolidated financial statements and footnotes thereto included in the Registrant Company and Subsidiaries' annual report on Form 10-KSB for the year ended December 31, 2000. Note 2 - Company Debt Restructure In January 2001, the Company entered into a Loan and Security Agreement with a new lender under which the lender has provided the Company with a credit facility in the amount of $9,500,000, secured by equipment, inventory, receivables, and other assets of the Company. The credit facility includes a term loan of $1,426,000, at an interest rate of prime plus 0.75%, and a revolving line of credit at an interest rate of prime plus 0.50%, the amount of which is based on advances of up to 85% of eligible receivables and 50% of the value of the Company's inventory. The credit facility is secured by substantially all assets of the Company. The term of this credit facility is for a period of three years, which may be extended by either party for an additional year. Also in January 2001, another lender loaned to the Company the sum of $2,873,000 in a refinance of the Company's principal office building and property situated in Barrington, Illinois. The loan is secured by the aforementioned building and property, and has been made in the form of two notes. The first note is in the principal amount of $2,700,000, bears interest at the rate of 9.75%, and has a term of five years with an amortization period of 25 years. The second note is in the principal amount of $173,000 with an interest rate of 10%, and has a term of three years. Note 3 - Warrants Issued In July, 2001, warrants to purchase up to 100,000 shares of the Company's Common Stock at $1.78 were issued. The new warrants expire on July 17, 2006. Note 4 - Change of State of Incorporation On October 30, 2001, the Company filed the necessary documentation with the Illinois and Delaware Secretaries of State in order to complete its migratory merger/state of incorporation change from Delaware to Illinois. As a consequence of the merger, all shares of the Company's authorized and issued capital stock shall be of no par value. Note 5 - Recent Accounting Pronouncements SFAS NO. 141 "BUSINESS COMBINATIONS", AND SFAS 142, "GOODWILL AND INTANGIBLE ASSETS" On July 20, 2001, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) 141, Business Combinations, and SFAS 142, Goodwill and Intangible Assets. SFAS 141 is effective for all business combinations completed after June 30, 2001. SFAS 142 is effective for fiscal years beginning after December 15, 2001; however, certain provisions of this Statement apply to goodwill and other intangible assets acquired between July 1, 2001 and the effective date of SFAS 142. Although it is still reviewing the provisions of these Statements, management's preliminary assessment is that these Statements will not have a material impact on the Company's financial position or results of operations Note 6 - Earnings Per Share The Company adopted SFAS No. 128, "Earnings per Share," for the year ended October 31, 1998. Adoption of this pronouncement did not have a material impact on the Company's financial statements. Basic earnings per share is computed by dividing the income available to common shareholders by the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is computed by dividing net income by the weighted average number of shares of common stock and common stock equivalents (stock options and warrants), unless anti-dilutive, during each period. Earnings per share for the periods ended June 30, 2001 and 2000 was computed as follows: EX-11 3 d27434_ex11.txt COMPUTATION OF PER SHARE EARNINGS Exhibit 11 CTI Industries Corporation and Subsidiaries
Quarter Ended September 30 Year to Date September 30 Unaudited Unaudited Unaudited Unaudited 2001 2000 2001 2000 ----------- ----------- ----------- ------------ Basic Average shares outstanding: Weighted average number of shares of common stock outstanding during the period 1,207,944 1,207,944 1,207,944 1,207,944 =========== =========== =========== =========== Net income: Net income (loss) $ (14,495) $ (156,484) $ (87,888) $ (301,293) Amount for per share computation $ (14,495) $ (156,484) $ (87,888) $ (301,293) =========== =========== =========== =========== Per share amount $ (0.01) $ (0.13) $ (0.07) $ (0.25) =========== =========== =========== =========== Diluted Average shares outstanding: Weighted average number of shares of common stock outstanding during the period 1,207,944 1,207,944 1,207,944 1,207,944 Net additional shares assuming stock options and warrants exercised and proceeds used to purchase treasury stock -- -- -- 107,498 ----------- ----------- ----------- ----------- Weighted average number of shares and equivalent shares of common stock outstanding during the period 1,207,944 1,207,944 1,207,944 1,315,442 =========== =========== =========== =========== Net income: Net income (loss) $ (14,495) $ (156,484) $ (87,888) $ (301,293) Amount for per share computation $ (14,495) $ (156,484) $ (87,888) $ (301,293) =========== =========== =========== =========== Per share amount $ (0.01) $ (0.13) $ (0.07) $ (0.23) =========== =========== =========== ===========
-----END PRIVACY-ENHANCED MESSAGE-----