-----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, N2V/0C2Y/Nt7AKU0/49CB6sl8+sU3342JIN0ivP6xeD5T8ofo/EGqrtC49JdEowN J8V40l4cY/an9z7TOhiHDg== 0000950130-96-001403.txt : 19960430 0000950130-96-001403.hdr.sgml : 19960430 ACCESSION NUMBER: 0000950130-96-001403 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960429 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: BOLT TECHNOLOGY CORP CENTRAL INDEX KEY: 0000354655 STANDARD INDUSTRIAL CLASSIFICATION: OIL & GAS FILED MACHINERY & EQUIPMENT [3533] IRS NUMBER: 060773922 STATE OF INCORPORATION: CT FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-10723 FILM NUMBER: 96552565 BUSINESS ADDRESS: STREET 1: FOUR DUKE PL CITY: NORWALK STATE: CT ZIP: 06854 BUSINESS PHONE: 2038530700 MAIL ADDRESS: STREET 1: FOUR DUKE PL CITY: NORWALK STATE: CT ZIP: 06854 10-Q 1 FORM 10-Q FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (X) Quarterly report pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 ( ) Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 ______________________________ For the quarter ended March 31, 1996 Commission file No. 0-10723 BOLT TECHNOLOGY CORPORATION --------------------------- (Exact name of Registrant as specified in its charter) CONNECTICUT 06-077392 ----------- --------- (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation of organization) FOUR DUKE PLACE, NORWALK, CONNECTICUT 06854 -------------------------------------------------------- (Address of principal executive officies) (Zip Code) 203-853-0700 ------------ (Registrant's telephone number, including area code) Indicate by a check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange of 1934 during the preceding 12 months (or for such shorter period that the registrant was requried to file such reports), and (2) has been subject to such filing requirements for the pasr 90 days. Yes X No __ - The number of Shares outstanding of the Registrant's common stock as of April 17, 1996 was: Common Stock, without par value - 4,971,431 shares (1) BOLT TECHNOLOGY CORPORATION --------------------------- INDEX ----- Page Number ----------- Part I - Financial Information: Consolidated statements of income - three and nine months ended March 31, 1996 and 1995 3 Consolidated balance sheets - March 31, 1996 (unaudited) and June 30, 1995 4 Consolidated statements of cash flows - nine months ended March 31, 1996 and 1995 5 Notes to consolidated financial statements 6-7 Management's discussion and analysis of financial condition and results of operations 8-10 Part II - Other Information: Item 6 - Exhibits and reports on Form 8-K 10 Signatures 11 (2) PART I - FINANCIAL INFORMATION BOLT TECHNOLOGY CORPORATION CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) _______________________________
Three Months Ended Nine Months Ended March 31, March 31, ------------------ ------------------- 1996 1995 1996 1995 ---- ---- ---- ---- REVENUES: Sales.................................. $1,782,000 $1,426,000 $5,418,000 $4,463,000 Service................................ 167,000 375,000 437,000 789,000 Interest............................... 6,000 - 9,000 - ---------- ---------- --------- ---------- 1,955,000 1,801,000 5,864,000 5,252,000 ---------- ---------- --------- ---------- COSTS AND EXPENSES: Cost of sales......................... 913,000 819,000 2,884,000 2,508,000 Cost of service....................... 187,000 255,000 627,000 640,000 Research and development.............. 42,000 51,000 120,000 152,000 Selling, general and administrative... 520,000 418,000 1,462,000 1,281,000 Interest.............................. 6,000 17,000 20,000 43,000 ---------- ---------- ---------- ---------- 1,668,000 1,560,000 5,113,000 4,624,000 ---------- ---------- ---------- ---------- Income before provision for income taxes.................................. 287,000 241,000 751,000 628,000 Provision for income taxes................ 10,000 - 10,000 - ---------- ---------- ---------- ---------- Net income............................. $ 277,000 $ 241,000 $ 741,000 $ 628,000 ========== ========== ========== ========== Net income per common share............... $0.06 $0.05 $0.15 $0.12 ========== ========== ========== ========== Weighted average common and common equivalent shares outstanding.......... 4,971,431 4,971,431 4,971,431 5,210,520 ========== ========== ========== ==========
See Notes to Consolidated Financial Statements. (3) BOLT TECHNOLOGY CORPORATION CONSOLIDATED BALANCE SHEETS --------------------------- ASSETS ------
March 31, June 30, 1996 1995 (unaudited) ----------- -------- Current Assets: Cash and cash equivalents........... $748,000 $59,000 Accounts receivable, net............ 1,646,000 1,961,000 Inventories......................... 1,705,000 1,653,000 Other............................... 485,000 477,000 ---------- ---------- Total current assets 4,584,000 4,150,000 ---------- ---------- Property and Equipment, net............ 105,000 131,000 ---------- ---------- Other Assets........................... 651,000 641,000 ---------- ---------- $5,340,000 $4,922,000 ========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY ------------------------------------ Current Liabilities: Notes payable........................ $ - $103,000 Accounts payable..................... 450,000 682,000 Accrued liabilities.................. 487,000 475,000 ---------- ---------- Total current liabilities 937,000 1,260,000 ---------- ---------- Stockholders' Equity: Common stock,without par value....... 24,660,000 24,660,000 Accumulated deficit.................. (20,257,000) (20,998,000) ---------- ---------- Total stockholders' equity............. 4,403,000 3,662,000 ---------- ---------- $5,340,000 $4,922,000 ========== ==========
See Notes to Consolidated Financial Statements. (4) BOLT TECHNOLOGY CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) __________________________________
Nine Months Ended March 31, --------------------- 1996 1995 ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES: Net income............................................ $741,000 $628,000 Adjustments to reconcile net income to cash provided by operating activities: Depreciation....................................... 46,000 36,000 -------- -------- 787,000 664,000 Change in Operating Assets and Liabilities Accounts receivable................................ 315,000 (557,000) Inventories........................................ (52,000) (84,000) Other assets....................................... (18,000) (30,000) Accounts payable and accrued liabilities........... (220,000) 58,000 -------- -------- Net cash provided by operating activities.......... 812,000 51,000 -------- -------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment.................... (20,000) (62,000) -------- -------- Net cash used in investing activities.............. (20,000) (62,000) -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES: Purchase of Warrant................................... - (300,000) Net (decrease) increase in borrowings under revolving credit facility...................................... (103,000) 272,000 Exercise of stock options............................. - 3,000 -------- -------- Net cash used in financing activities.............. (103,000) (25,000) -------- -------- NET INCREASE (DECREASE) IN CASH $689,000 $(36,000) ======== ======== INTEREST PAID $25,000 $51,000 ======== ======== INCOME TAXES PAID $13,000 $3,000 ======== ========
See Notes to Consolidated Financial Statements. (5) BOLT TECHNOLOGY CORPORATION --------------------------- NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ------------------------------------------- (UNAUDITED) ----------- NOTE-1- BASIS OF PRESENTATION ----------------------------- The consolidated balance sheet as of March 31, 1996, the consolidated statements of income for the three-month and nine-month periods ended March 31, 1996 and 1995 and the consolidated statements of cash flows for the nine-month periods ended March 31, 1996 and 1995 are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of such financial statements have been included. Such adjustments consisted only of normal recurring items. Interim results are not necessarily indicative of results for a full year. It is suggested that the March 31, 1996 consolidated financial state- ments be read in conjunction with the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the year ended June 30, 1995. NOTE 2 - NOTES PAYABLE - ---------------------- The Company has a revolving credit facility with a domestic bank which allows for borrowings up to $2,250,000 determined by a formula based upon 85% of eligible accounts receivable, inventory and equipment. At March 31, 1996 there were no borrowings outstanding under this agreement. Maximum borrowings available at March 31, 1996 were $1,093,000. The agreement will expire in July 1997, unless renewed and has an interest rate of 1 1/2% over the bank's prime rate. The Company also pays an annual fee equal to 1% of the facility limit. The lender has a first priority security interest in all of the Company's assets and, under the agreement, the Company must, among other things, maintain no less than $930,000 of net worth. The Company is restricted from paying dividends during the term of the loan agreement. NOTE 3 - INCOME TAXES - --------------------- At March 31, 1996, the Company had net operating loss carry-forwards for federal income tax purposes of approximately $17,100,000 which expire in the years 2001 through 2007. Management has recorded a net tax asset of $1,037,000 relating to the expected future benefits of the net operating loss carry- forwards and other deductible temporary differences expected to be realized during the carry-forward periods. At March 31, 1996, current deferred tax assets of $408,000 were included in the consolidated balance sheet under caption "Other" and $629,000 of non- current deferred tax assets were included in the balance sheet under caption "Other Assets". In the third quarter of fiscal 1996, the Company recorded a provision for state income taxes of $10,000. Under the provisions of FAS No. 109, no federal income provision is required because of available net operating loss carry- forwards. (6) BOLT TECHNOLOGY CORPORATION --------------------------- NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ------------------------------------------ (CONTINUED) ----------- NOTE 4 - INVENTORIES - -------------------- Inventories, net of reserves, are comprised of the following:
March 31, June 30, 1996 1995 ---- ---- Raw materials and sub-assemblies.. $1,484,000 $1,526,000 Work-in process................... 221,000 127,000 ---------- ---------- $1,705,000 $1,653,000 ========== ==========
NOTE 5 - PROPERTY AND EQUIPMENT - -------------------------------- Property and equipment are comprised of the following:
March 31, June 30, 1996 1995 ---- ---- Building and leasehold improvements.. $ 534,000 $ 534,000 Geophysical equipment................ 2,682,000 2,674,000 Machinery and equipment.............. 4,028,000 4,104,000 Equipment held for rental............ 822,000 1,316,000 ----------- ----------- 8,066,000 8,628,000 Less accumulated depreciation.... (7,961,000) (8,497,000) ----------- ----------- $ 105,000 $ 131,000 =========== ===========
(7) BOLT TECHNOLOGY CORPORATION --------------------------- MANAGEMENT'S DISCUSSION AND ANALYSIS OF --------------------------------------- FINANCIAL CONDITION AND RESULTS OF OPERATIONS --------------------------------------------- LIQUIDITY AND CAPITAL RESOURCES - ------------------------------- A summary of the Company's financial position follows:
(In thousands) -------------- March 31, June 30, June 30, June 30, 1996 1995 1994 1993 --------- -------- -------- -------- Working capital....... $3,647 $2,890 $1,873 $ 773 Stockholders' equity.. 4,403 3,662 2,006 930 Bank borrowings....... - 103 257 2,136
Cash and cash equivalents increased $689,000 from June 30, 1995 to March 31, 1996. Cash provided by operating activities for the nine months ended March 31, 1996 was $812,000 offset by cash used in investing activities of $20,000 and cash used in financing activities of $103,000. Trade accounts receivables decreased by $315,000 due to improved collections. Management intends to focus efforts on maintaining days' sales outstanding within a 70 to 80 day range. Total current liabilities decreased $323,000 from June 30, 1995 due to the elimination of borrowings under the Company's credit facility and earlier payment of vendor invoices because of improved cash flow. Capital expenditures amounted to $20,000 for the first nine months of fiscal 1996. The Company anticipates that expenditures for the current fiscal year will not exceed $50,000 and will be funded through cash flow from operations. The Company's internal sources of liquidity are existing cash balances and cash flow from operations. The Company's external sources of liquidity are trade credit from vendors and borrowings available under the Company's credit facility. The Company believes these sources will be adequate to provide required liquidity in the forseeable future. (8) BOLT TECHNOLOGY CORPORATION --------------------------- MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL ------------------------------------------------- CONDITION AND RESULTS OF OPERATIONS ----------------------------------- RESULTS OF OPERATIONS - --------------------- Revenue for the three-month and six-month periods ended March 31, 1996 and 1995 were comprised of the following (000's omitted):
Three Months Ended Nine Months Ended March 31, March 31, ------------------ ----------------- 1996 1995 1996 1995 ---- ---- ---- ---- Sales: Marine equipment $1,763 $1,385 $5,323 $4,342 Land equipment 19 41 95 121 ------ ------ ------ ------ 1,782 1,426 5,418 4,463 ------ ------ ------ ------ Service: Data acquisition 167 375 437 789 ------ ------ ------ ------ Interest 6 - 9 - ------ ------ ------ ------ Total Revenue $1,955 $1,801 $5,864 $5,252 ====== ====== ====== ======
Total revenue increased 9% for the third quarter of 1996 and 12% for the first nine months of fiscal 1996. Both the continued acceptance of the Company's long-life guns and the wider application of three dimensional seismic surveys have contributed to the increase in marine equipment sales. Partially offsetting the increase in marine equipment sales was reduced service revenue from Wellseis(R) operations which decreased $208,000 for the quarter and $352,000 for the nine-month period. The decreases have been a result of equipment problems which delayed scheduled work and the lower demand for this service. Cost of sales as a percentage of sales improved from 57% to 51% in the third quarter principally from improved margins on long-life guns and replacement parts sales and improved utilization afforded by increased equipment sales. Cost of sales as a percentage of sales improved from 56% to 53% for the nine-month period because of the reasons noted above and improved margins from the rental of land seismic units. Cost of service decreased $68,000 for the quarter and $13,000 for the nine- month period. The lower level of expenditures was related to the reduced level of revenue for each period. (9) BOLT TECHNOLOGY CORPORATION --------------------------- MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL ------------------------------------------------- CONDITION AND RESULTS OF OPERATIONS (CONTINUED) ----------------------------------------------- RESULTS OF OPERATIONS (CONT'D.) - --------------------- Other operating expenses (research and development and selling, general and administrative expenses) increased $93,000 for the quarter and $149,000 for the nine months ended March 31, 1996. The increases for the quarter and nine-month period were the result of higher personnel costs and an increase in the provision for bad debts. Interest expense decreased $11,000 for the quarter and $23,000 for the nine-month period because of reduced borrowings under the Company's credit facility. In the third quarter of fiscal 1996, the Company recorded a provision for state income taxes of $10,000. Under the provisions of FAS No. 109, no federal income tax provision is required because of available net operating loss carry- forwards. PART II - OTHER INFORMATION --------------------------- ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K - ----------------------------------------- (a) Exhibits. -------- (11) Statement re computation of earnings per share. (27) Financial data schedule. (b) Reports on Form 8-K. ------------------- No reports on Form 8-K were filed by the Company during January, February or March 1996. (10) BOLT TECHNOLOGY CORPORATION --------------------------- 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. /s/ Raymond M. Soto ---------------------------- President and Treasurer (Principal Executive Officer and Principal Financial Officer) /s/ Alan Levy ---------------------------------- Vice President-Finance and Secretary (Principal Accounting Officer April 25, 1996 (11) EX-11 2 COMPUTATION OF NET INCOME EXHIBIT 11 PART II - EXHIBIT 11 Computation of Net Income per Share of Common Stock ---------------------------------------------------
Three Months Ended Nine Months Ended March 31, March 31, ------------------ ----------------- 1996 1995 1996 1995 ---- ---- ---- ---- Weighted average shares of common stock outstanding 4,971,431 4,971,431 4,971,431 4,966,116 Shares issuable from assumed exercise of stock options and warrants. 107,694 55,786 117,553 275,449 ---------- ---------- ---------- ---------- Weighted average shares outstanding, as adjusted 5,079,125 5,027,217 5,088,984 5,241,565 ========== ========== ========== ========== Net income $ 277,000 $ 241,000 $ 741,000 $ 628,000 ========== ========== ========== ========== Net income per common share $ 0.05 $ 0.05 $ 0.15 $ 0.12 ========== ========== ========== ==========
In accordance with Accounting Principles Board Opinion No. 15, the inclusion of common stock equivalents in the computation of earnings per share need not be considered if the reduction in earnings per share is less than 3%. Therefore, net income per common share and common share equivalent as shown on the Consolidated Statements of Income for the three months ended March 31, 1996 and 1995 and the nine months ended March 31, 1996 do not include common share equivalents. EX-27 3 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATMENTS FOR THE PERIOD ENDING MARCH 31, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 9-MOS JUN-30-1996 JUL-01-1995 MAR-31-1996 748,000 0 1,646,000 0 1,705,000 4,584,000 0 0 5,340,000 937,000 0 24,660,000 0 0 (20,257,000) 5,340,000 5,418,000 5,864,000 2,884,000 3,511,000 1,582,000 0 20,000 751,000 10,000 741,000 0 0 0 741,000 0.15 0.15
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