-----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, GpXhJ8Qbr5QkOxhQ7EMMwGUg+YoMD/lGUkibfXmsKnASKc25y4Ho19N4rNh7aMgA NUY6+qhpQ8lBdMzZLU594A== 0000950148-96-000218.txt : 19960216 0000950148-96-000218.hdr.sgml : 19960216 ACCESSION NUMBER: 0000950148-96-000218 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960214 SROS: NONE 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: 96519197 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 FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 1995 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 DECEMBER 31, 1995 OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 or 15(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 DECEMBER 31, 1995 --------------------- ------------------ COMMON STOCK, WITHOUT PAR VALUE 1,443,542
================================================================================ 2 AMELCO CORPORATION AND SUBSIDIARIES INDEX
PART I. FINANCIAL INFORMATION PAGE ---- CONSOLIDATED BALANCE SHEETS- DECEMBER 31, 1995 AND SEPTEMBER 30, 1995 3 CONSOLIDATED STATEMENTS OF EARNINGS - THREE MONTHS ENDED DECEMBER 31, 1995 AND 1994 4 CONSOLIDATED STATEMENTS OF CASH FLOW- THREE MONTHS ENDED DECEMBER 31, 1995 AND 1994 5 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 6 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 7 PART II. OTHER INFORMATION 9 SIGNATURE PAGE 9
3 AMELCO CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(UNAUDITED) December 31, September 30, ASSETS 1995 1995 ------ ------------ ------------ Cash (note 4) $ 3,296,000 3,863,000 Receivables, net (note 2) 26,239,000 26,899,000 Inventories 169,000 175,000 Investment in and advances to joint ventures 38,000 78,000 Costs and recognized profits in excess of billings on uncompleted contracts 7,672,000 6,541,000 Deferred tax assets 203,000 231,000 Prepaid expenses and other 932,000 339,000 --------------- ----------- Total Current Assets 38,549,000 38,126,000 Note receivable from related party, noncurrent 3,298,000 3,306,000 Other notes receivable and noncurrent investments 350,000 300,000 Property, plant and equipment, net 1,788,000 1,772,000 Other assets 163,000 125,000 --------------- ----------- TOTAL ASSETS $ 44,148,000 43,629,000 =============== =========== LIABILITIES AND STOCKHOLDERS' EQUITY ------------------------------------ Short term borrowings $ 1,950,000 900,000 Short term notes payable 512,000 102,000 Current portion of long term debt 49,000 48,000 Accounts payable 13,604,000 15,986,000 Accrued expenses 3,127,000 2,831,000 Federal and state income taxes 14,000 - Billings in excess of costs and recognized profits on uncompleted contracts 7,547,000 6,548,000 Other current liabilities 471,000 550,000 --------------- ----------- Total Current Liabilities 27,274,000 26,965,000 Long term debt, excluding current portion 1,851,000 1,863,000 Deferred federal and state income taxes 51,000 19,000 Minority interest in subsidiary 18,000 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 5,003,000 4,816,000 --------------- ----------- 17,965,000 17,778,000 Less treasury shares (3,011,000) (3,011,000) --------------- ----------- Total stockholders' equity 14,954,000 14,767,000 --------------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 44,148,000 43,629,000 =============== ===========
4 AMELCO CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS THREE MONTHS ENDED DECEMBER 31, 1995 AND 1995 (UNAUDITED)
1995 1994 ----------- ---------- Revenues $27,478,000 31,350,000 Costs and operating expenses 24,959,000 28,773,000 ----------- ---------- Gross profit 2,519,000 2,577,000 General and administrative expenses 2,209,000 2,048,000 ----------- ---------- Operating income 310,000 529,000 ----------- ---------- Other income (expense): Interest expense (109,000) (75,000) Other, net 120,000 57,000 ----------- ---------- Total other income (expense) 11,000 (18,000) ----------- ---------- Earnings before income taxes 321,000 511,000 Income tax expense 131,000 208,000 Minority interest in earnings (loss) of subsidiary 3,000 (5,000) ----------- ---------- Net earnings $ 187,000 308,000 =========== ========== Earnings per share: Net earnings per common share $ 0.13 $ 0.21 =========== ========== Weighted average number of common shares outstanding during the period 1,444,000 1,444,000 =========== ==========
5 AMELCO CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS THREE MONTHS ENDED DECEMBER 31, 1995 AND 1994 (UNAUDITED)
1995 1994 ----------- ----------- Cash flows from operating activities: Net earnings $ 187,000 308,000 ----------- ----------- Adjustments to reconcile income to net cash provided (used) by operating activities: Depreciation and amortization 100,000 98,000 (Increase) decrease in assets and increase (decrease) in liabilities: Accounts receivable 660,000 3,691,000 Investment in joint venture 40,000 (18,000) Inventories 6,000 28,000 Costs and recognized profits in excess of billings on uncompleted contracts (1,131,000) (1,581,000) Prepaid expenses (593,000) (476,000) Other assets (38,000) (23,000) Accounts payable and accrued expenses (2,086,000) (4,096,000) Billings in excess of costs and recognized profits on uncompleted contracts 999,000 536,000 Income taxes payable 74,000 (73,000) Other liabilities (79,000) (103,000) ----------- ----------- Total adjustments (2,048,000) (2,017,000) ----------- ----------- Net cash (used) by operating activities $(1,861,000) (1,709,000) ----------- ----------- Cash flows from investing activities: Decrease(increase) in notes receivable and other investments (42,000) 8,000 Increase (decrease) in minority interest 3,000 (5,000) Proceeds from sale of assets - 1,000 Capital expenditures (116,000) (54,000) ----------- ----------- Net cash (used) by investing activities $ (155,000) (50,000) ----------- ----------- Cash flows from financing activities: Borrowings under revolving line of credit, net 1,050,000 1,050,000 Repayments of long term debt (11,000) (11,000) Borrowings under short term note payable 638,000 540,000 Repayments of short term note payable (228,000) (204,000) ----------- ----------- Net cash provided by financing activities $ 1,449,000 1,375,000 ----------- ----------- Net increase (decrease) in cash and cash equivalents (567,000) (384,000) Cash and cash equivalents at beginning of year 3,863,000 2,690,000 ----------- ----------- Cash and cash equivalents at end of year $ 3,296,000 2,306,000 =========== ===========
6 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 December 31, 1995 and September 30, 1995, the results of its operations for the three months ended December 31, 1995 and 1994 and changes in cash flow for the three months ended December 31, 1995 and 1994. 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 $5,653,000 and $5,521,000 at December 31, 1995 and September 30, 1995, respectively. 3. Backlog: The backlog of uncompleted contracting work was approximately $83,978,000 on contracts in force as of December 31, 1995, 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 $40,000 at September 30, 1995. Contract backlog from joint venture participations was not significant at December 31, 1995. 4. Cash: Cash balances at December 31, 1995 include approximately $1,772,000 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 has been declared and is payable on February 15, 1996 to stockholders of record on February 1, 1996. The dividend amounts to $216,000. 7 AMELCO CORPORATION AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS CAPITAL RESOURCES AND LIQUIDITY Cash balances decreased from $3,863,000 at September 30, 1995 to $3,296,000 at December 31, 1995. This decrease in cash of $567,000 consisted of approximately $1,861,000 used by operating activities and $155,000 used by investing activities. The decrease was offset by $1,449,000 provided by financing activities. Cash used by operating activities consisted primarily of decreases in accounts payable and accrued expenses aggregating $2,086,000 and an increase in costs and recognized profits in excess of billings on uncompleted contracts of $1,131,000. This change was offset by net earnings from operating activities of $187,000, an increase in billings in excess of costs and recognized profits on uncompleted contracts of $999,000 and a decrease in receivables of $660,000. The increase in prepaid expenses of $593,000 reflects primarily prepaid insurance premiums for the fiscal 1996 year which were funded by a short-term note payable. Net cash provided by financing activities included $1,050,000 in borrowings under the Company's lines of credit and $638,000 under a short term note to finance insurance premiums as mentioned above. These changes were offset by repayments of long term debt and short term notes amounting to $11,000 and $228,000, respectively. Net cash used by investing activities consisted primarily of capital expenditures of $116,000 and an increase in noncurrent notes receivable and other investments aggregating $42,000. The Company's construction backlog amounted to approximately $83,978,000 at December 31, 1995, of which approximately $52.5 million was in California, $9.7 million was in Hawaii and the Pacific Basin, and $21.8 million in other western continental U. S. states. The Company's revolving lines of credit aggregating $6,000,000 are scheduled to be renewed in March 1996. At December 31, 1995, there was $1,950,000 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. 8 AMELCO CORPORATION AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) RESULTS OF OPERATIONS Consolidated revenues decreased by 12.4% in the three month period ended December 31, 1995 as compared to the prior year. The change in the three month period results primarily from revenue decreases of approximately $0.8 million from the California operations, $1.1 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 decreased by $58,000 in the three month period ended December 31, 1995 as compared to the previous period. The change results from the decrease in revenue volume, which was offset by an increase in gross margins. Gross profits as a percentage of revenue were 9.2% and 8.2% in the three month periods ended December 31, 1995 and 1994, respectively.The change in gross margins reflects higher margin construction work performed in the current quarter 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 three month period ended December 31, 1995 increased by approximately $161,000 or 7.9% as compared to the previous period. The change reflects increases in compensation paid to employees as well as the cost of additional project management and administrative staff, together with related office support expenses, incurred since the prior period. Interest expense increased by $34,000 in the three month period ended December 31, 1995 due to a combination of higher interest rates and increased utilization of the Company's lines of credit as compared to the previous period. 9 PART II OTHER INFORMATION No events occurred during the three (3) month period ended December 31, 1995 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: February 14, 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 FORM 10-Q FOR THE THREE MONTHS ENDED DECEMBER 31, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS 1,000 3-MOS SEP-30-1996 OCT-01-1995 DEC-31-1995 3,296 0 26,524 285 169 38,549 7,681 5,893 44,148 27,274 1,851 0 0 5,535 9,419 44,148 27,478 27,478 24,959 24,959 0 0 109 321 131 187 0 0 0 187 0.13 0.13
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