-----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, BeWIYmRiOyOjlNEHvHZKvY53ABzBygW4qgX/3PbRDMop4yBYqu8EUlzWNa4kY7WF qMosa25SpoDDmXqFtscjag== 0000046709-96-000007.txt : 19960422 0000046709-96-000007.hdr.sgml : 19960422 ACCESSION NUMBER: 0000046709-96-000007 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960329 FILED AS OF DATE: 19960419 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: HELIX TECHNOLOGY CORP CENTRAL INDEX KEY: 0000046709 STANDARD INDUSTRIAL CLASSIFICATION: SPECIAL INDUSTRY MACHINERY, NEC [3559] IRS NUMBER: 042423640 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-06866 FILM NUMBER: 96548719 BUSINESS ADDRESS: STREET 1: NINE HAMPSHIRE STREET STREET 2: NINE HAMPSHIRE ST CITY: MANSFIELD STATE: MA ZIP: 02048 BUSINESS PHONE: 5083375111 MAIL ADDRESS: STREET 1: NINE HAMPSHIRE STREET CITY: MANSFIELD STATE: MA ZIP: 02048 FORMER COMPANY: FORMER CONFORMED NAME: CRYOGENIC TECHNOLOGY INC DATE OF NAME CHANGE: 19760707 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 ___________________________ [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the Quarter Ended March 29, 1996. 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 0-6866 HELIX TECHNOLOGY CORPORATION (Exact name of registrant as specified in its charter) Delaware 04-2423640 (State of incorporation) (IRS Employer Identification No.) Mansfield Corporate Center Nine Hampshire Street Mansfield, Massachusetts 02048-9171 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (508) 337-5111 _______________________________ Indicate by checkmark 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 (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past ninety days. Yes [X] No [ ] Indicate the number of shares outstanding of each of the Registrant's classes of Common Stock as of the latest practicable date. Class of Common Stock Outstanding at March 29, 1996 $1.00 par value 9,796,144 Shares HELIX TECHNOLOGY CORPORATION Form 10-Q INDEX Page Part I. FINANCIAL INFORMATION Item 1. Financial Statements 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 8 Part II. OTHER INFORMATION Item 4 (a). Date of Annual Meeting of Stockholders 9 Item 6 (a). Exhibits 9 Item 6 (b). Reports on Form 8-K 9 Signatures 10 HELIX TECHNOLOGY CORPORATION CONSOLIDATED BALANCE SHEETS Mar. 29, 1996 Dec. 31, 1995 (in thousands) Notes (unaudited) (audited) ASSETS Current: Cash and cash equivalents $ 25,036 $ 21,697 Receivables - net of allowances 19,958 17,974 Inventories 4 12,744 12,122 Deferred income taxes 3 3,039 3,039 Other current assets 649 556 Total Current Assets 61,426 55,388 Property, plant and equipment at cost 25,721 25,387 Less: accumulated depreciation (17,873) (17,061) Net property, plant and equipment 7,848 8,326 Other assets 5,494 5,360 TOTAL ASSETS $ 74,768 $ 69,074 LIABILITIES AND STOCKHOLDERS' EQUITY Current: Accounts payable $ 7,715 $ 6,558 Payroll and compensation 3,106 3,755 Retirement costs 1,584 1,359 Income taxes 4,244 4,756 Other accrued liabilities 482 705 Total Current Liabilities 17,131 17,133 Deferred income taxes 3 388 388 Commitments - - Stockholders' Equity: Preferred stock, $1 par value; authorized 2,000,000 shares; issued and outstanding: none - - Common stock, $1 par value; authorized 30,000,000 shares; issued and outstanding: 9,796,144 in 1996 and 9,776,944 in 1995 9,796 9,777 Capital in excess of par value 4,523 3,659 Currency translation adjustment 1,178 1,307 Retained earnings 41,752 36,810 Total Stockholders' Equity 57,249 51,553 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 74,768 $ 69,074 The accompanying notes are an integral part of these financial statements. Page 3 HELIX TECHNOLOGY CORPORATION CONSOLIDATED STATEMENT OF OPERATIONS AND RETAINED EARNINGS (unaudited) For the 13 weeks ended (in thousands except per share data) Notes Mar. 29, 1996 Mar. 31, 1995 Net Sales $40,206 $27,154 Costs and expenses: Cost of sales 21,239 15,070 Research and development 1,627 1,122 Selling, general and administrative 6,089 4,678 28,955 20,870 Operating income 11,251 6,284 Joint venture income 401 508 Other 220 90 Income before taxes 11,872 6,882 Income taxes 3 4,482 2,546 Net income $ 7,390 $ 4,336 Net income per common share $ 0.74 $ 0.43 Average shares and equivalents 10,008 9,990 The accompanying notes are an integral part of these financial statements. Page 4 HELIX TECHNOLOGY CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) For the 13 weeks ended (in thousands) Mar. 29, 1996 Mar. 31, 1995 Cash flows from operating activities: Net income $ 7,390 $ 4,336 Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation and amortization 1,032 579 Undistributed earnings of joint venture, other (263) (148) Net change in operating assets and liabilities (A) (1,925) 1,591 Net cash provided by operating activities 6,234 6,358 Cash flows from investing activities: Capital expenditures (554) (755) Net cash used by investing activities (554) (755) Cash flows from financing activities: Decrease in capital lease obligations - (11) Net cash provided by employee stock plans 108 17 Cash dividends paid (2,449) (1,064) Net cash used by financing activities (2,341) (1,058) Increase in cash and cash equivalents 3,339 4,545 Cash and cash equivalents, at the beginning of the period 21,697 8,050 Cash and cash equivalents, at the end of the period $25,036 $12,595 (A) Change in operating assets and liabilities: (Increase)/decrease in accounts receivable $(1,984) $(1,452) (Increase)/decrease in inventories (622) (1,566) (Increase)/decrease in other current assets (93) (18) Increase/(decrease) in accounts payable 1,157 1,692 Increase/(decrease) in other accrued expenses (383) 2,935 Net change in operating assets and liabilities $(1,925) $ 1,591 The accompanying notes are an integral part of these financial statements. Page 5 HELIX TECHNOLOGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1 In the opinion of the Company, the accompanying consolidated financial statements for the periods ended March 29, 1996, and March 31, 1995, contain all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the financial position as of March 29, 1996, and December 31, 1995, and the results of operations and cash flows for the periods ended March 29, 1996, and March 31, 1995. The results of operations for the three-month period ended March 29, 1996, are not necessarily indicative of the results expected for the full year. The condensed financial statements included herein have been prepared by the Company, without audit of the three-month periods ended March 29, 1996, and March 31, 1995, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to present fairly the Company's financial position. These condensed financial statements should be read in conjunction with the financial statements and the notes thereto included in the Company's latest annual report on Form 10-K. Certain reclassifications have been made to prior years' consolidated statements of cash flow to conform with the current presentation. Note 2 Net Income Per Common Share Net income per common share is based upon the weighted average number of common shares and common share equivalents outstanding during the periods, as determined by use of the treasury stock method. Primary and fully- diluted net income per common share are essentially the same for the periods presented. Page 6 HELIX TECHNOLOGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 3 Income Taxes The federal, state and foreign income tax provisions of $4,482,000 and $2,546,000 for the three-month periods ended March 29, 1996, and March 31, 1995, respectively, reflect the effects of various available tax credits. Tax credits are treated as reductions of income tax provisions in the year in which the credits are realized. The Company does not provide for United States taxes on the undistributed earnings of its wholly owned foreign subsidiaries. A certain level of export income of the Company's Foreign Sales Corporation (FSC) is permanently exempt from federal income tax; accordingly, the income tax provisions for the three-month periods ended March 29, 1996, and March 31, 1995, include the federal tax benefit on export income of the FSC. The effective income tax rate for the three-month periods ended March 29, 1996, and March 31, 1995, was 37.75% and 37.0%, respectively. The major components of deferred tax assets and liabilities are inventory valuation, compensation and depreciation, respectively. Based on past experience, the Company expects that the future taxable income will be sufficient for the realization of the deferred tax assets. The Company believes that a valuation allowance is not required. Note 4 Inventories (in thousands) March 29, 1996 Dec. 31, 1995 Finished goods $ 4,299 $ 3,870 Work in process 7,237 7,340 Materials and parts 1,208 912 Net inventories $12,744 $12,122 Inventories are stated at the lower of cost of market on a first-in, first- out basis. Page 7 HELIX TECHNOLOGY CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Results of Operations Net sales for the quarter increased 48% to $40.2 million compared with $27.2 million a year ago. The growth in revenues resulted primarily from record sales of the Company's products and services used principally by semiconductor manufacturers worldwide. Gross margin increased 57% compared to the comparable period one year ago. Gross profit percentage for the quarter was 47.2% compared with 44.5% a year ago. Research and development expenditures increased $505 thousand in the first quarter of 1996 compared with the same period last year. Selling, general and administrative expense increased by $1.4 million in the first quarter of 1996 versus the first quarter of 1995. This increase in Selling, general and administrative expense is attributable to increases in variable selling expenses, product marketing and hiring costs. Operating income increased by $5.0 million compared with the first quarter of 1995. Higher sales coupled with continuing investments to improve operational efficiencies are the primary reasons for the increase in operating income. Income from the Company's joint venture in Japan decreased $107 thousand in the first quarter of 1996 compared with the same period a year ago. However, income increased by $136 thousand compared to the fourth quarter of 1995. The Company's provision for income taxes was $4.5 million and $2.5 million for the first quarter of 1996 and 1995, respectively. The effective tax rate for the three-month periods ended March 29, 1996, and March 31, 1995, was 37.75% and 37.0%, respectively. The difference between the statutory federal rate and the Company's effective tax rate is due to state and foreign income taxes. Liquidity and Capital Resources Cash provided by operating activities for the first quarter of 1996 was $6.2 million compared with $6.4 million for the comparable period last year. The Company has informal bank lines of credit available under various short- term borrowing agreements totaling $12.0 million. There were no borrowings under these agreements at the end of the first quarter of 1996. Cash dividends paid to stockholders during the first quarter of 1996 were $2.4 million or $0.25 per common share. The Company announced an increase in the quarterly cash dividend to $0.35 per common share payable in the second quarter. The Company believes anticipated cash flow from operations and funds available under existing credit lines will be adequate to meet its anticipated requirements. Page 8 HELIX TECHNOLOGY CORPORATION PART II. OTHER INFORMATION Item 4(a). Date of Annual Meeting of Stockholders The Company's Annual Meeting of Stockholders will be held on April 24, 1996. Item 6(a). Exhibits 4A Description of Common Stock (incorporated herein, by reference to Exhibit 3 to the Form 10-Q for the quarter ended September 30, 1988). 4B Description of Preferred Stock (incorporated herein, by reference to Exhibit 3 to the Form 10-Q for the quarter ended September 30, 1988). 27 Financial Data Schedule (EDGAR version only) Item 6(b). Reports on Form 8-K No Form 8-K was required to be filed during the quarter ended March 29, 1996. Page 9 HELIX TECHNOLOGY CORPORATION 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. HELIX TECHNOLOGY CORPORATION (Registrant) Date: April 19, 1996 By: Stephen D. Allison Vice President and Chief Financial Officer Page 10 EX-27 2
5 1,000 3-MOS DEC-31-1996 MAR-29-1996 25,036 0 20,107 (149) 12,744 61,426 25,721 (17,873) 74,768 17,131 0 0 0 9,796 47,453 74,768 40,206 40,206 21,239 7,716 (621) 0 0 11,872 4,482 7,390 0 0 0 7,390 0.74 0.74
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