-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, lB/3JROYjk8/W2jqlMCzxzuRIlrhcp/UazxJ5/gffwiLostRi9pP7jtKQpzf91ex KPWYpJwiH5Z1KMuifCZYHw== 0000026987-95-000018.txt : 19950511 0000026987-95-000018.hdr.sgml : 19950511 ACCESSION NUMBER: 0000026987-95-000018 CONFORMED SUBMISSION TYPE: DEFA14A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19950509 SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: DDL ELECTRONICS INC CENTRAL INDEX KEY: 0000026987 STANDARD INDUSTRIAL CLASSIFICATION: PRINTED CIRCUIT BOARDS [3672] IRS NUMBER: 330213512 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: DEFA14A SEC ACT: 1934 Act SEC FILE NUMBER: 001-08101 FILM NUMBER: 95535652 BUSINESS ADDRESS: STREET 1: 7320 SW HUNZIKER ROAD #300 CITY: TIGARD STATE: OR ZIP: 97223-2302 BUSINESS PHONE: 5036201789 MAIL ADDRESS: STREET 1: 7320 SW HUNZIKER ROAD #300 CITY: TIGARD STATE: OR ZIP: 97223-2302 FORMER COMPANY: FORMER CONFORMED NAME: DATA DESIGN LABORATORIES INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: DATA DESIGN LABORATORIES DATE OF NAME CHANGE: 19880817 DEFA14A 1 Schedule 14a (Rule 14a-101) Information Required in Proxy Statement Schedule 14A Information Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 (Amendment No. ) Filed by the Registrant [x] Filed by a party other than the Registrant [ ] Check the appropriate box: [ ] Preliminary Proxy Statement [ ] Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) [ ] Definitive Proxy Statement [x] Definitive Additional Materials *[ ] Soliciting Material Pursuant to Rule 14a-11(c) or Rule 14a-12 Name of Registrant as Specified in Charter: DDL Electronics, Inc. (Name of Person(s) Filing Proxy Statement, if other than Registrant: Payment of Filing Fee (Check the appropriate box): [x] $125 per Exchange Act Rules 0-11(c)(1)(ii), 14a-6(i)(1), or 14a-6(i)(2) or Item 22(a)(2) of Schedule 14A. [ ] $500 per each party to the controversy pursuant to Exchange Act Rule 14a-6(i)(3). [ ] Fee computed on table below per Exchange Act Rules 14a- 6(i)(4) and 0-11. (1) Title of each class of securities to which transaction applies.: (2) Aggregate number of securities to which transaction applies: (3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the filing fee is calculated and state how it was determined): (4) Proposed maximum aggregate value of transaction: (5) Total fee paid: [ ] Fee paid previously with preliminary materials [ ] Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number or the Form or Schedule and the date of its filing. (1) Amount previously paid: (2) Form, Schedule, or Registration Statement No.: (3) Filing Party: (4) Date filed: May 4, 1995 To our Shareholders: Financial performance for the third quarter of fiscal 1995 was most encouraging, with earnings from operations of $167,000 compared to the prior year third quarter loss of $1,287,000. Revenues for the quarter were $6,079,000 compared to third quarter fiscal 1994 revenues of $11,343,000. The reduced revenues are the result of the previously announced sale of substantially all assets of the A. J. Electronics and Aeroscientific Corp. subsidiaries. Three years ago we commenced restructuring DDL. We began with an operating group having negative gross margins, over $30 million of accumulated debt and large losses. The return to an operating profit this quarter was accomplished despite significant working capital limitations and the absence of available bank credit during the past three years. We have overcome these and other difficulties to improve margins, eliminate senior debt and return to an operating profit. We must now turn our attention to growing the business to build on this progress. Our mutual objective, to build a company that delivers sustained growth in shareholder value, now requires the following steps. - We must establish new banking relationships in fiscal 1996 to provide working capital to finance our growth. Near term requirements will be financed with cash from operations. - With the payoff of all senior debt accomplished on December 29, 1994, the Company removed a major barrier to building new customer relationships. The expansion of our customer base in fiscal 1996 is essential to filling the estimated $60 million of sales capacity at the existing facilities. - We will seek opportunities for merger or acquisition with companies that would benefit from our public listing, while expanding DDL's ability to serve major global electronics customers as an important supplier of interconnection products and services. We see opportunities in DDL's markets as the industry consolidates and the number of suppliers and captive facilities is reduced. Considering the large size of our markets, and the absence of a dominant competitor, we believe DDL can build by acquisition in this industry now that our excessive debt has been resolved. Having identified a number of specific candidates to initiate this strategy over the last three months, it will be my primary objective to achieve the financial benefits from these opportunities as we move forward. On April 13 ,1995 I added to the cash resources of the company and emphasized our belief in the prospects for the implementation of this strategy with the purchase of 310,000 shares of common stock through the exercise of options granted under my employment agreement. Your continued support in building a profitable and stronger company is appreciated as we transition from our difficult restructuring phase and "switch gears" to implement our plans to grow DDL. Very truly yours William E. Cook Chairman and Chief Executive Officer April 28, 1995 Tigard, Oregon Third Quarter Operating Statement Highlights (Unaudited) DDL Electronics, Inc. and Subsidiaries ($ in thousands except per share amounts) Three Nine Months Months Ended Ended March 31 March 31 1995 1994 1995 1994 Sales $ 6,079 $ 11,343 $ 22,673 $39,512 Costs and Expenses Cost of goods sold 4,916 11,266 20,629 39,178 Administrative and Selling Expenses 913 1,995 4,146 5,729 Restructuring charges - - 1,173(A) - Operating income (loss) 250 (1,918) (3,275) (5,395) Nonoperating income (expense): Investment income 28 21 85 128 Interest expense (111) (247) (767) (804) Other Income - - 33 34 Gain on sale of assets - 2 3,374(B) 2 Income (loss) before extraordinary item 167 (2,142) (550) (6,035) Extraordinary item - - 2,441(C) - Net income (loss) $ 167 $ (2,142) $ 1,891 $(6,035) Primary earnings (loss) per share: Continuing operations $0.01 ($0.14) ($0.03) ($0.40) Extraordinary item - - $0.15 - $0.01 ($0.14) $0.12 ($0.40) Average primary shares (in thousands) 16,013 15,306 15,791 15,105 (A) On January 17, 1995, the Company sold substantially all of the physical assets of its United States electronic contract manufacturing subsidiary, A.J. Electronics, Inc. (A.J.) to Raven Industries, Inc. In conjunction with the sale, the Company recorded disposition costs and operating losses as of December 31, 1994 totaling $2,050, including restructuring charges through A.J.'s disposal and liquidation of $1,173. (B) On December 29, 1994, the Company recognized a gain of $3,774 from the sale of substantially all of the assets of its Aeroscientific Corp. subsidiary to Yamamoto Manufacturing (USA), Inc. (C) On December 29, 1994, the Sanwa Bank California ("Sanwa") accepted a cash payment of $4,500 in full and complete satisfaction of outstanding debt. The related gain on extinguishment of the debt is recorded as an extraordinary item in accordance with FAS 15.
Consolidated Balance Sheet (dollars in thousands except per share amounts) March 31, June 30, 1995 1994 (Unaudited) (Audited) ASSETS Current assets: Cash and cash equivalents $ 2,389 $ 2,540 Accounts receivable 4,149 5,600 Inventories 2,223 3,647 Prepaid expenses 264 231 Total current assets 9,025 12,018 Property, plant and improvements, net 3,307 10,642 Deposits and other assets 447 598 $12,779 $23,258 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ 749 $13,524 Accounts payable 4,980 5,086 Accrued payroll and employee benefits 728 994 Other accrued liabilities 1,344 1,673 Total current liabilities 7,801 21,277 7% Convertible Subordinated Debentures 729 775 8-1/2% Convertible Subordinated Debentures 1,580 1,580 Other long-term debt 4,449 4,515 Stockholders' equity (deficit): Common stock 153 145 Preferred stock - Series B - - Additional paid-in capital 20,647 19,646 Retained earnings (deficit) (21,782) (23,673) Foreign currency translation adjustment (798) (1,007) Total stockholders' deficit (1,780) (4,889) $12,779 $23,258 DEFICIT PER SHARE ($.12) ($.34) SHARES OUTSTANDING 15,257,663 14,468,718
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