-----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, AqA/C0+LJt0B/PCYYv0aFcvhyiLo2fT2HnFCqigdHoi/t5hMtBKBOKtKZQ1gJkzw 1XtzfoHOUJ3PnwL51j3rqQ== 0000004438-96-000003.txt : 19960816 0000004438-96-000003.hdr.sgml : 19960816 ACCESSION NUMBER: 0000004438-96-000003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960814 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMELCO CORP CENTRAL INDEX KEY: 0000004438 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRICAL WORK [1731] IRS NUMBER: 990068616 STATE OF INCORPORATION: CA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-06079 FILM NUMBER: 96614647 BUSINESS ADDRESS: STREET 1: 19208 S VERMONT AVE CITY: GARDENA STATE: CA ZIP: 90248 BUSINESS PHONE: 3103273070 MAIL ADDRESS: STREET 1: 19208 SOUTH VERMONT AVENUE CITY: GARDENA STATE: CA ZIP: 90248 10-Q 1 FORM 10-Q 1 Form 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1996 OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 or15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____to____ Commission file number 0-6079 AMELCO CORPORATION (Exact name of registrant as specified in its charter) California 99-0068616 ------------------ ------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 19208 South Vermont Avenue Gardena, California 90248 ----------------------------- ---------- (Address of principal executive offices) (Zip Code) (310) 327-3070 (Registrant's telephone number, including area code) Not Applicable (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) 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 (2) has been subject to such filing requirements for the past 90 days. YES X NO ----- ----- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.
Outstanding at Class of Common Stock June 30, 1996 --------------------- -------------- Common Stock, without par value 1,443,088
2 AMELCO CORPORATION AND SUBSIDIARIES INDEX
PART I. FINANCIAL INFORMATION PAGE ---- Consolidated Balance Sheets- June 30, 1996 and September 30, 1995 3 Consolidated Statements of Earnings - Nine months ended June 30, 1996 and 1995 4 Consolidated Statements of Earnings - Three months ended June 30, 1996 and 1995 5 Consolidated Statements of Cash Flow- Nine months ended June 30, 1996 and 1995 6 Notes to Consolidated Financial Statements 7 Management's Discussion and Analysis of Financial 8 Condition and Results of Operations PART II. Other Information 10 Signature Page 10
3 Amelco Corporation and Subsidiaries Consolidated Balance Sheets
(Unaudited) June 30, September 30, 1996 1995 ----------- ------------- Assets - ------ Cash (note 4) $ 3,885,000 3,863,000 Receivables, net (note 2) 26,274,000 26,899,000 Inventories 170,000 175,000 Investment in and advances to joint ventures 45,000 78,000 Costs and recognized profits in excess of billings on uncompleted contracts 6,380,000 6,541,000 Deferred tax assets 294,000 231,000 Prepaid expenses and other 413,000 339,000 ------------ ---------- Total Current Assets 37,461,000 38,126,000 Note receivable from related party,noncurrent 3,280,000 3,306,000 Other notes receivable and noncurrent investments 307,000 300,000 Property, plant and equipment, net 2,284,000 1,772,000 Other assets 163,000 125,000 ------------ ---------- Total Assets $ 43,495,000 43,629,000 ============ ========== Liabilities and Stockholders'Equity - ----------------------------------- Short term borrowings $ 2,100,000 900,000 Current portion of long term debt 61,000 48,000 Short term notes payable 59,000 102,000 Accounts payable 12,325,000 15,986,000 Accrued expenses 3,595,000 2,831,000 Federal and state income taxes 52,000 - Billings in excess of costs and recognized profits on uncompleted contracts 7,628,000 6,548,000 Other current liabilities 417,000 550,000 ----------- ---------- Total Current Liabilities 26,237,000 26,965,000 Long term debt, excluding current portion 2,093,000 1,863,000 Deferred federal and state income taxes 32,000 19,000 Minority interest in subsidiary 31,000 15,000 Stockholders' equity: Common stock, without par value,authorized 3,000,000 shares,issued 2,214,008 5,535,000 5,535,000 Additional paid-in capital 7,427,000 7,427,000 Retained earnings 5,152,000 4,816,000 ------------ ---------- 18,114,000 17,778,000 Less treasury shares (3,012,000) (3,011,000) ------------ ---------- Total stockholders'equity 15,102,000 14,767,000 ------------ ---------- Total Liabilities and Stockholders' Equity $ 43,495,000 43,629,000 ============ ===========
4 Amelco Corporation and Subsidiaries Consolidated Statements of Earnings Nine Months Ended June 30, 1996 and 1995 (Unaudited)
1996 1995 ------------ ------------ Revenues $ 88,322,000 94,025,000 Costs and operating expenses 80,421,000 86,564,000 ------------ ----------- Gross profit 7,901,000 7,461,000 General and administrative expenses 6,920,000 6,081,000 ------------ ----------- Operating income 981,000 1,380,000 ------------ ----------- Other income (expense): Interest expense (295,000) (239,000) Other, net 276,000 209,000 ------------- ----------- Total other income (expense) (19,000) (30,000) ------------- ----------- Earnings before income taxes 962,000 1,350,000 Income tax expense 394,000 559,000 Minority interest in earnings (loss) of subsidiary 15,000 (10,000) ------------- ----------- Net earnings $ 553,000 801,000 ============= =========== Earnings per share: Net earnings per common share $ 0.38 $ 0.55 ========== ========== Weighted average number of common shares outstanding during the period 1,443,000 1,444,000 ========== ========== 5 Amelco Corporation and Subsidiaries Consolidated Statements of Earnings Three Months Ended June 30, 1996 and 1995 (Unaudited)
1996 1995 ------------ ----------- Revenues $ 29,750,000 31,669,000 Costs and operating expenses 26,970,000 29,238,000 ------------ ----------- Gross profit 2,780,000 2,431,000 General and administrative expenses 2,484,000 2,011,000 ------------ ----------- Operating income 296,000 420,000 ------------ ----------- Other income (expense): Interest expense (85,000) (73,000) Other, net 106,000 72,000 ------------ ----------- Total other income (expense) 21,000 (1,000) ------------ ----------- Earnings before income taxes 317,000 419,000 Income tax expense 130,000 168,000 Minority interest in earnings (loss) 9,000 - of subsidiary ------------ ----------- Net earnings $ 178,000 251,000 ============ =========== Earnings per share: Net earnings per common share $ 0.12 $ 0.17 =========== =========== Weighted average number of common shares outstanding during the period 1,443,000 1,444,000 =========== =========== 6 Amelco Corporation and Subsidiaries Consolidated Statements of Cash Flows Nine Months Ended June 30, 1996 and 1995 (Unaudited)
1996 1995 ------------ ------------ Cash flows from operating activities: Net earnings $ 553,000 801,000 Adjustments to reconcile income to net cash provided (used) by operating activities: Depreciation and amortization 314,000 300,000 Gain on sale of assets (1,000) (4,000) (Increase) decrease in assets and increase (decrease)in liabilities: Accounts receivable 625,000 (132,000) Investment in joint venture 33,000 1,055,000 Inventories 5,000 (44,000) Costs and recognized profits in excess of billings on uncompleted contracts 161,000 (1,780,000) Prepaid expenses (74,000) (179,000) Other assets (38,000) (31,000) Accounts payable and accrued expense (2,897,000) (553,000) Billings in excess of costs and recognized profits on uncompleted contracts 1,080,000 1,247,000 Income taxes payable 2,000 (291,000) Other liabilities (133,000) (142,000) ---------- --------- Total adjustments (923,000) (554,000) ---------- --------- Net cash (used) by operating activities $ (370,000) 247,000 ----------- --------- Cash flows from investing activities: Decrease (increase) in notes receivable and other investments 19,000 64,000 Proceeds from sale of assets 21,000 6,000 Capital expenditures (846,000) (278,000) Other 15,000 (18,000) ---------- ---------- Net cash (used) by investing activities $ (791,000) (226,000) ----------- ---------- Cash flows from financing activities: Borrowings under revolving line of credit, net 1,200,000 1,250,000 Repayments of long term debt (37,000) (34,000) Borowings under long term debt 281,000 - Borrowings under short term note payable 638,000 540,000 Repayments of short term note payable (682,000) (492,000) Dividends paid (217,000) (144,000) ----------- ---------- Net cash provided by financing activities $ 1,183,000 1,120,000 ----------- ---------- Net increase (decrease) in cash and cash equivalents 22,000 1,141,000 Cash and cash equivalents at beginning of year 3,863,000 2,690,000 ----------- ---------- Cash and cash equivalents at end of year $ 3,885,000 3,831,000 =========== ========== 7 Amelco Corporation and Subsidiaries Notes to Consolidated Financial Statements 1. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of normal recurring adjustments necessary to present fairly the Company's financial position as of June 30, 1996 and September 30, 1995, the results of its operations for the three and nine months ended June 30, 1996 and 1995 and changes in cash flow for the nine months ended June 30, 1996 and 1995. These condensed financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended September 30, 1995. 2. Retentions: Contract retentions which are collectible upon the owner's approval of contract performance on construction contracts are included under receivables and amount to $6,460,000 and $5,521,000 at June 30, 1996 and September 30, 1995, respectively. 3. Backlog: The backlog of uncompleted contracting work was approximately $65,697,000 on contracts in force as of June 30, 1996 , compared with $87,661,000 as of September 30, 1995, inclusive of the Company's proportionate share of contract backlog from joint ventures amounting to $54,000 and $40,000 at June 30, 1996 and September 30, 1995, respectively. 4. Cash: Cash balances at June 30, 1996 include approximately $2,216,000 in restricted time deposits maintained in lieu of retention which will be released upon completion of the related construction projects. Interest income on these deposits are credited to the Company. 5. Dividends: A $0.15 per share dividend was paid on February 15, 1996 to stockholders of record on February 1, 1996. The dividend amounted to $217,000. 8 Amelco Corporation and Subsidiaries Management's Discussion and Analysis of Financial Condition and Results of Operations Capital Resources and Liquidity Cash balances increased from $3,863,000 at September 30, 1995 to $3,885,000 at June 30, 1996. The increase in cash of $22,000 consisted of approximately $370,000 used by operating activities and $791,000 used by investing activities. The decrease was offset by $1,183,000 provided by financing activities. Cash used by operating activities consisted primarily of decreases in accounts payable and accrued expenses aggregating $2,897,000. This change was offset by net earnings from operating activities of $553,000, an increase in billings in excess of costs and recognized profits on uncompleted contracts of $1,080,000 and a decrease in receivables of $625,000. Net cash provided by financing activities included a $1,200,000 increase in borrowings under the Company's lines of credit, $638,000 borrowed under a short term note to finance insurance premiums and a $281,000 mortgage note obtained to finance the purchase of a dwelling unit to house certain construction project personnel. These changes were offset by repayments of long term debt and short term notes amounting to $37,000 and $682,000, respectively, and the payment of a dividend to shareholders of $217,000 in February, 1996. Net cash used by investing activities consisted primarily of capital expenditures of $846,000, which included the purchase of real property as discussed previously, which amounted to approximately $363,000, and various construction equipment acquired for specific construction projects presently in progress. The Company's construction backlog amounted to approximately $65,697,000 at June 30, 1996, of which approximately $39.1 million was in California, $10.6 million was in Hawaii and the Pacific Basin, and $16.0 million in other continental U. S. states. The Company's revolving lines of credit which were renewed in March 1996, have been increased from $6,000,000 to $7,000,000, under terms which are unchanged from those previously in effect. These short term credit facilities were increased to enhance the Company's ability to engage in new bidding opportunities. At June 30, 1996, there was $2,100,000 borrowed under these lines of credit. Management believes that the present liquidity of the Company together with the availability of the aforementioned lines of credit are adequate to provide the necessary working capital to fund the Company's operations in the near term future. 9 Amelco Corporation and Subsidiaries Management's Discussion and Analysis of Financial Condition and Results of Operations (continued) Results of Operations Consolidated revenues decreased by 6.1% in the nine month period ended June 30, 1996 as compared to the prior year. The change in the nine month period results primarily from revenue decreases of approximately $0.3 million from the California operations, $3.5 million from the Hawaii operations and $1.9 million from construction operations in other western continental U.S. states. These changes in revenue volume reflect primarily the degree of success in bidding on new work as well as the scheduling requirements of the customer, and are not necessarily indicative of revenue volume or profitability in future periods. Gross profits increased by $440,000 in the nine month period ended June 30, 1996 as compared to the previous period. Gross profits as a percentage of revenue were 8.9% and 7.9% in the nine month periods ended June 30, 1996 and 1995, respectively. The change in gross margins reflects improved margins on construction work performed in the current period in both the California and Hawaii markets. The Company continues to experience highly competitive conditions in the commercial and industrial construction market. Management's ability to enhance profit margins in its business is largely limited to its ability to identify profitable bidding opportunities, estimate accurately during the bidding stage and upon award, to effectively manage jobsite performance. General and administrative expenses for the nine month period ended June 30, 1996 increased by approximately $839,000 as compared to the previous period. The change results primarily from increases in compensation paid to employees as compared to the prior period, and the cost of additional management, estimating and administrative staff at the office and field level, together with related support expenses. Interest expense increased by $56,000 in the nine month period ended June 30, 1996 due primarily to increased utilization of the Company's lines of credit as compared to the previous period. Other income increased by $67,000 due primarily to an increase in interest income. 10 Part II Other Information No events occurred during the three (3) month period ended June 30, 1996 which are reportable under this part. 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. Amelco Corporation Date: August 13, 1996 By /s/ Patrick T. Miike ----------------------- Patrick T. Miike Chief Financial Officer, Vice President-Finance and Treasurer
EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM (A) FORM 10-Q FOR THE NINE MONTHS ENDED JUNE 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH (B) FINANCIAL STATEMENTS. 1,000 SEP-30-1996 OCT-1-1995 JUN-30-1996 9-MOS 3,885 0 26,559 285 170 37,461 8,186 5,901 43,495 26,237 2,093 5,535 0 0 9,567 43,495 88,322 88,322 80,421 80,421 0 0 295 962 394 553 0 0 0 553 .38 .38
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