-----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, Ot9rJV9GN3JM6NAJRMiQ8+7TewQ91nSRIhy469EnCOyfU6Igl1EfYU/6BXQLhud7 MTMUab4w+Uk3fPjNPD3AEg== 0000046709-96-000013.txt : 19961027 0000046709-96-000013.hdr.sgml : 19961027 ACCESSION NUMBER: 0000046709-96-000013 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960927 FILED AS OF DATE: 19961024 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: HELIX TECHNOLOGY CORP CENTRAL INDEX KEY: 0000046709 STANDARD INDUSTRIAL CLASSIFICATION: GENERAL INDUSTRIAL MACHINERY & EQUIPMENT [3560] 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: 96647135 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 September 27, 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 September 27, 1996 $1.00 par value 9,852,090 Shares HELIX TECHNOLOGY CORPORATION Form 10-Q INDEX Page Part I. FINANCIAL INFORMATION Item 1. Financial Statements 3-7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 8 Part II. OTHER INFORMATION Item 6 (a). Exhibits 9 Item 6 (b). Reports on Form 8-K 9 Signature 10 HELIX TECHNOLOGY CORPORATION CONSOLIDATED BALANCE SHEETS Sept. 27, 1996 Dec. 31, 1995 (in thousands) (unaudited) (audited) ASSETS Current: Cash and cash equivalents $29,174 $21,697 Receivables - net of allowances 12,783 17,974 Inventories (Note 4) 12,893 12,122 Deferred income taxes (Note 3) 3,039 3,039 Other current assets 623 556 Total Current Assets 58,512 55,388 Property, plant and equipment at cost 27,475 25,387 Less: accumulated depreciation (18,927) (17,061) Net property, plant and equipment 8,548 8,326 Other assets 5,796 5,360 TOTAL ASSETS $72,856 $69,074 LIABILITIES AND STOCKHOLDERS' EQUITY Current: Accounts payable $ 4,372 $ 6,558 Payroll and compensation 3,479 3,755 Retirement costs 1,996 1,359 Income taxes 2,749 4,756 Other accrued liabilities 649 705 Total Current Liabilities 13,245 17,133 Deferred income taxes (Note 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: 9,947,144 in 1996 and 9,776,944 in 1995 9,947 9,777 Capital in excess of par value 5,190 3,659 Treasury stock (95,054 shares) (3,040) - Currency translation adjustment 865 1,307 Retained earnings 46,261 36,810 Total Stockholders' Equity 59,223 51,553 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $72,856 $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 For the three and nine-month periods ended September 27, 1996 and September 29, 1995 (unaudited) (in thousands except per share data) September 27, 1996 September 29, 1995 Three Nine Three Nine Months Months Months Months Net Sales $25,122 $104,679 $32,253 $88,437 Costs and expenses: Cost of sales 13,469 55,288 17,745 48,935 Research and development 2,062 5,660 1,034 3,262 Selling, general and administrative 4,620 16,250 5,046 14,080 20,151 77,198 23,825 66,277 Operating income 4,971 27,481 8,428 22,160 Joint venture income 469 1,221 249 1,127 Other 341 877 126 308 Income before taxes 5,781 29,579 8,803 23,595 Income taxes (Note 3) 1,906 10,789 3,301 8,774 Net income $ 3,875 $ 18,790 $ 5,502 $14,821 Net income per common share $ 0.39 $ 1.88 $ 0.55 $ 1.48 Average shares and equivalents 9,970 9,980 10,014 10,006 The accompanying notes are an integral part of these financial statements. Page 4 HELIX TECHNOLOGY CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) For the 39 weeks ended (in thousands) Sept. 27, 1996 Sept. 29, 1995 Cash flows from operating activities: Net income $18,790 $14,821 Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation and amortization 2,463 1,861 Undistributed earnings of joint venture, other (878) (279) Net change in operating assets and liabilities (A) 1,241 (931) Net cash provided by operating activities 21,616 15,472 Cash flows from investing activities: Capital expenditures (2,685) (2,228) Net cash used by investing activities (2,685) (2,228) Cash flows from financing activities: Decrease in capital lease obligations - (36) Shares tendered for exercise of stock options (2,065) (2,553) Purchase of treasury stock (975) - Net cash provided by employee stock plans 926 712 Cash dividends paid (9,340) (3,208) Net cash used by financing activities (11,454) (5,085) Increase in cash and cash equivalents 7,477 8,159 Cash and cash equivalents, at the beginning of the period 21,697 8,050 Cash and cash equivalents, at the end of the period $29,174 $16,209 (A) Change in operating assets and liabilities: (Increase)/decrease in accounts receivable $ 5,191 $(3,905) (Increase)/decrease in inventories (771) (2,212) (Increase)/decrease in other current assets (67) 62 Increase/(decrease) in accounts payable (2,186) 1,374 Increase/(decrease) in other accrued expenses (926) 3,750 Net change in operating assets and liabilities $ 1,241 $ (931) 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 September 27, 1996, and September 29, 1995, contain all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the financial position as of September 27, 1996, and December 31, 1995, and the results of operations and cash flows for the periods ended September 27, 1996, and September 29, 1995. The results of operations for the nine-month period ended September 27, 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 nine-month periods ended September 27, 1996, and September 29, 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 $10,789,000 and $8,774,000 for the nine-month periods ended September 27, 1996, and September 29, 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 nine-month periods ended September 27, 1996, and September 29, 1995, include the federal tax benefit on export income of the FSC. The effective income tax rate for the nine-month periods ended September 27, 1996, and September 29, 1995, was 36.48% and 37.20%, 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) Sept. 27, 1996 Dec. 31, 1995 Finished goods $ 4,068 $ 3,870 Work in process 7,712 7,340 Materials and parts 1,113 912 Net inventories $12,893 $12,122 Inventories are stated at the lower of cost or 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 were $25.1 million compared with $32.3 million a year ago, a decrease of 22.3%. Sales for the first nine months of 1996 were $104.7 million compared with $88.4 million in the first nine months of 1995, an increase of 18.4%. The sales decline for the third quarter resulted from the anticipated weakening in the semiconductor capital equipment market. Nine-month sales for the Company are still at record levels due to strong first-half performance in 1996. Gross profit percentage for the quarter was 46.4% compared with 45.0% a year ago. Gross profit percentage for the first nine months of 1996 was 47.2% versus 44.7% for the first nine months of 1995. Research and development expenditures increased $2.4 million in the first nine months of 1996 compared with the same period last year. Total Selling, general and administrative expense increased by $2.2 million in the first nine months of 1996 versus the first nine months of 1995. Total Selling, general and administrative expense for the third quarter of 1996 decreased by $.4 million as compared to the third quarter of 1995 primarily due to a decrease in the provision for performance-based compensation. Operating income in the third quarter decreased by $3.5 million compared with the third quarter of 1995. Operating income for the first nine months of 1996 increased by $5.3 million compared with the same period a year ago. The Company's provision for income taxes was $10.8 million and $8.8 million for the first nine months of 1996 and 1995, respectively. The effective tax rate for the first nine months of 1996 was 36.48% versus 37.20% for the first nine months of 1995. 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 nine months of 1996 was $21.6 million compared with $15.5 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 third quarter of 1996. Cash dividends paid to stockholders during the first nine months of 1996 were $9.3 million versus $3.2 million during the first nine months of last year. 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 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 September 27, 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: October 24, 1996 By: Stephen D. Allison Vice President and Chief Financial Officer Page 10 EX-27 2
5 1000 9-MOS DEC-31-1996 SEP-27-1996 29,174 0 12,932 (149) 12,893 58,512 27,475 (18,927) 72,856 13,245 0 0 0 9,947 49,276 72,856 104,679 104,679 55,288 21,910 (2,098) 0 0 29,579 10,789 18,790 0 0 0 18,790 1.88 1.88
-----END PRIVACY-ENHANCED MESSAGE-----