-----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, B/48NZVj2hCglAKv1em62+1tJd7dZFAj+aB8dPhVThsg9aY9CwcmSpwrLae/cPlq 1lXJ1BmA5twO6JWBCoFcAA== 0000950152-01-501936.txt : 20010516 0000950152-01-501936.hdr.sgml : 20010516 ACCESSION NUMBER: 0000950152-01-501936 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20010331 FILED AS OF DATE: 20010515 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HICKOK INC CENTRAL INDEX KEY: 0000047307 STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL INSTRUMENTS FOR MEASUREMENT, DISPLAY, AND CONTROL [3823] IRS NUMBER: 340288470 STATE OF INCORPORATION: OH FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-00147 FILM NUMBER: 1634932 BUSINESS ADDRESS: STREET 1: 10514 DUPONT AVE CITY: CLEVELAND STATE: OH ZIP: 44108 BUSINESS PHONE: 2165418060 MAIL ADDRESS: STREET 1: 10514 DUPONT AVE CITY: CLEVELAND STATE: OH ZIP: 44108 FORMER COMPANY: FORMER CONFORMED NAME: HICKOK ELECTRICAL INSTRUMENT CO DATE OF NAME CHANGE: 19920703 10-Q 1 l87945ae10-q.txt HICKOK INCORPORATED 10-Q 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES - --- EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2001 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 NO. 0-147 HICKOK INCORPORATED - -------------------------------------------------------------------------------- (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) OHIO 34-0288470 - -------------------------------- -------------------------------------- (STATE OR OTHER JURISDICTION OF (IRS EMPLOYER IDENTIFICATION NO.) INCORPORATION OR ORGANIZATION) 10514 DUPONT AVENUE; CLEVELAND, OHIO 44108 - ------------------------------------------------------------------------------ (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE) REGISTRANT'S TELEPHONE NUMBER INCLUDING AREA CODE (216) 541-8060 - ------------------------------------------------------------------------------ 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 (OR FOR SUCH SHORTER PERIOD THAT THE REGISTRANT WAS REQUIRED TO FILE SUCH REPORTS) AND (2) HAS BEEN SUBJECT TO THE FILING REQUIREMENTS FOR THE PAST 90 DAYS. YES X NO ----- ----- AS OF MAY 15, 2001 762,884 HICKOK INCORPORATED CLASS A COMMON SHARES AND 454,866 CLASS B COMMON SHARES WERE OUTSTANDING. 2 FORM 10-Q PART I. FINANCIAL INFORMATION - ------------------------------ ITEM 1. FINANCIAL STATEMENTS: HICKOK INCORPORATED CONSOLIDATED INCOME STATEMENTS (Unaudited)
Three months ended Six months ended March 31, March 31, ------------------------------------- ------------------------------------- 2001 2000 2001 2000 ----------- ----------- ----------- ----------- Net Sales Product Sales $ 3,829,287 $ 4,013,571 $ 7,160,846 $ 9,137,963 Service Sales 337,112 382,212 759,849 638,439 ----------- ----------- ----------- ----------- Total Net Sales 4,166,399 4,395,783 7,920,695 9,776,402 Costs and Expenses: Cost of Product Sold 2,511,003 2,210,939 4,659,039 5,038,208 Cost of Service Sold 280,063 234,692 579,685 444,065 Product Development 683,281 753,172 1,274,015 1,461,805 Operating Expenses 1,221,028 1,428,945 2,455,369 2,716,583 Interest Charges 22,319 9,485 40,672 24,432 Other(Income)Expense (8,168) 27,097 (15,395) 11,465 ----------- ----------- ----------- ----------- 4,709,526 4,664,330 8,993,385 9,696,558 ----------- ----------- ----------- ----------- Income (Loss) before Income Taxes (543,127) (268,547) (1,072,690) 79,844 Income (Recovery of) Income Taxes (190,000) (94,100) (375,000) 27,900 ----------- ----------- ----------- ----------- Net Income (Loss) $ (353,127) $ (174,447) $ (697,690) $ 51,944 =========== =========== =========== =========== Earnings per Common Share: - -------------------------- Net Income (Loss) $ (.29) $ (.15) $ (.57) $ .04 =========== =========== =========== =========== Earnings per Common Share Assuming Dilution: ------------------ Net Income (Loss) $ (.29) $ (.15) $ (.57) $ .04 =========== =========== =========== =========== Dividends per Share $ - 0 - $ .10 $ - 0 - $ .10 =========== =========== =========== ===========
See Notes to Consolidated Financial Statements. (2) 3 HICKOK INCORPORATED CONSOLIDATED BALANCE SHEETS
March 31, September 30, March 31, 2001 2000 2000 ----------- ------------- ----------- (Unaudited) (Note) (Unaudited) Assets - ------ Current Assets - -------------- Cash and Cash Equivalents $ 225,109 $ 313,553 $ 438,411 Trade Accounts Receivable - Net 2,957,196 3,020,754 3,098,711 Inventories 4,607,414 5,860,217 5,886,646 Deferred Income Taxes 196,800 400,800 315,900 Prepaid Expenses 79,409 34,608 95,793 Refundable Income Taxes 348,100 261,833 199,624 ----------- ----------- ----------- Total Current Assets 8,414,028 9,891,765 10,035,085 -------------------- ----------- ----------- ----------- Property, Plant and Equipment - ----------------------------- Land 229,089 229,089 229,089 Buildings 1,486,845 1,486,845 1,565,021 Machinery and Equipment 3,821,388 3,706,199 4,317,051 ----------- ----------- ----------- 5,537,322 5,422,133 6,111,161 Less: Allowance for Depreciation 3,711,422 3,474,290 3,816,127 ----------- ----------- ----------- Total Property - Net 1,825,900 1,947,843 2,295,034 -------------------- ----------- ----------- ----------- Other Assets - ------------ Goodwill - Net of Amortization 1,743,886 1,799,999 1,856,058 Deferred Charges - Net of Amortization - 10,552 23,152 Deferred Income Taxes 318,400 114,400 - Deposits 2,050 2,050 1,750 ----------- ----------- ----------- Total Other Assets 2,064,336 1,927,001 1,880,960 ------------------ ----------- ----------- ----------- Total Assets $12,304,264 $13,766,609 $14,211,079 ============ =========== =========== ===========
NOTE: Amounts derived from audited financial statements previously filed with the Securities and Exchange Commission. See Notes to Consolidated Financial Statements. (3) 4 FORM 10-Q
March 31, September 30, March 31, 2001 2000 2000 ----------- ------------ ---------- (Unaudited) (Note) (Unaudited) Liabilities - ----------- Current Liabilities - ------------------- Short-term Financing $ 393,000 $ 668,000 $ 650,000 Current Portion of Long-Term Debt 40,128 40,128 102,071 Trade Accounts Payable 267,264 401,806 414,365 Accrued Payroll & Related Expenses 480,902 443,646 506,021 Accrued Expenses 151,943 207,750 191,161 Accrued Income Taxes - 207,202 204,371 ----------- ----------- ----------- Total Current Liabilities 1,333,237 1,968,532 2,067,989 ------------------------- ----------- ----------- ----------- Deferred Income Taxes - - 41,500 - --------------------- ----------- ----------- ----------- Long-term Debt 26,495 155,855 59,820 - -------------- ----------- ----------- ----------- Stockholders' Equity - -------------------- Class A, $1.00 par value; authorized 3,750,000 shares; 762,884 shares outstanding (744,884 shares outstanding at March 31, 2000) excluding 9,586 shares in treasury 762,884 762,884 744,884 Class B, $1.00 par value; authorized 1,000,000 shares; 454,866 shares outstanding excluding 20,667 shares in treasury 454,866 454,866 454,866 Contributed Capital 993,803 993,803 948,803 Retained Earnings 8,732,979 9,430,669 9,893,217 ----------- ----------- ----------- Total Stockholders' Equity 10,944,532 11,642,222 12,041,770 -------------------------- ----------- ----------- ----------- Total Liabilities and Stockholders' Equity $12,304,264 $13,766,609 $14,211,079 ==================== =========== =========== ===========
(4) 5 HICKOK INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED MARCH 31 (Unaudited)
2001 2000 ------------ ------------ Cash Flows from Operating Activities: Cash received from customers $ 7,984,253 $ 10,054,982 Cash paid to suppliers and employees (7,710,484) (9,723,098) Interest paid (41,012) (9,202) Interest received 4,442 9,751 Income taxes (paid) refunded 81,531 (286) ------------ ------------ Net Cash Provided by Operating Activities 318,730 332,147 Cash Flows from Investing Activities: Capital expenditures (115,189) (394,395) Payments for business purchased (Net) - (78,192) Proceeds on sale of assets - 3,900 ------------ ------------ Net Cash Used in Investing Activities (115,189) (468,687) Cash Flows from Financing Activities: Short-Term Borrowings 1,625,000 1,325,000 Payments on Short-Term Borrowings (1,900,000) (805,545) Decrease in long-term financing (16,985) (358,108) Dividends paid - (119,975) ------------ ------------ Net Cash Provided By (Used in) Financing Activities (291,985) 41,372 ------------ ------------ Net increase (decrease) in cash and cash equivalents (88,444) (95,168) Cash and cash equivalents at beginning of year 313,553 533,579 ------------ ------------ Cash and cash equivalents at end of second quarter $ 225,109 $ 438,411 ============ ============
See Notes to Consolidated Financial Statements. (5) 6 FORM 10-Q
2001 2000 ----------- ------------ Reconciliation of Net Income (Loss) to Net Cash Provided by Operating Activities: Net Income (Loss) $ (697,690) $ 51,944 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 303,797 353,826 Loss of disposal of assets - 34,946 Changes in assets and liabilities: Decrease (Increase) in accounts receivable 63,558 278,580 Decrease (Increase) in inventories 1,252,803 (178,548) Decrease (Increase) in prepaid expenses (44,801) (44,224) Increase in refundable income taxes (86,267) - Increase (Decrease) in trade accounts payable (134,542) (268,585) Increase (Decrease) in accrued payroll and related expenses 37,256 65,914 Increase (Decrease) in accrued expenses (55,807) 10,680 Increase (Decrease) in other Long-term liabilities (112,375) - Increase (Decrease) in accrued income taxes (207,202) 27,614 ----------- ----------- Total Adjustments 1,016,420 280,203 ----------- ----------- Net Cash Provided by (Used In) Operating Activities $ 318,730 $ 332,147 =========== ===========
(6) 7 FORM 10-Q HICKOK INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) March 31, 2001 1. Basis of Presentation --------------------- The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six-month periods ended March 31, 2001 are not necessarily indicative of the results that may be expected for the year ended September 30, 2001. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's annual report on Form 10-K for the year ended September 30, 2000. 2. Inventories ----------- Inventories are valued at the lower of cost or market and consist of the following:
March 31, Sept. 30, March 31, 2001 2000 2000 ----------- ----------- ------- Components $ 2,427,207 $ 2,950,611 $ 2,780,306 Work-in-Process 1,194,265 1,821,531 1,806,584 Finished Product 985,942 1,088,075 1,299,756 ----------- ----------- ----------- $ 4,607,414 $ 5,860,217 $ 5,886,646 =========== =========== ===========
The above amounts are net of reserve for obsolete inventory in the amount of $400,376, $254,510 and $415,560 for the periods ended March 31, 2001, September 30, 2000 and March 31, 2000 respectively. 3. Capital Stock, Treasury Stock, Contributed Capital and Stock Options -------------------------------------------------------------------- Under the Company's Key Employees Stock Option Plans (collectively the "Employee Plans"), incentive stock options, in general, are exercisable for up to ten years, at an exercise price of not less than the market price on the date the option is granted. Non-qualified stock options may be granted at such exercise price and such other terms and conditions as the Compensation Committee of the Board of Directors may determine. No options may be granted at a price less than $2.925. Options for 148,400 Class A shares were outstanding at March 31, 2001 (116,300 shares at September 30, 2000 and 134,300 shares at March 31, 2000) at prices ranging from $3.125 to $17.25 per share. Options for 32,100 shares and 27,800 shares were granted during the three month periods ended December 31, 2000 and December 31, 1999 respectively, at a price of $3.125 and $5.00 per share respectively, and all options are exercisable. (7) 8 FORM 10-Q NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED No other options were granted, exercised or cancelled during the three or six month periods presented under the Employee Plans. The Company's Outside Directors Stock Option Plans (collectively the "Directors Plans"), provide for the automatic grant of options to purchase up to 72,000 shares of Class A Common Stock to members of the Board of Directors who are not employees of the Company, at the fair market value on the date of grant. Options for 36,000 Class A shares were outstanding at March 31, 2001 (30,000 shares at September 30, 2000 and 42,000 shares at March 31, 2000) at prices ranging from $4.25 to $18.00 per share. Options for 6,000 shares were granted under the Directors Plans during each of the three month periods ended March 31, 2001 and March 31, 2000, at a price of $4.25 and $8.50 per share respectively. All outstanding options under the Directors Plans become fully exercisable on February 21, 2004. The Company applies APB Opinion No. 25, "Accounting for Stock Issued To Employees" and related interpretations in accounting for its stock plans for both employees and non-employee directors as allowed under FAS Statement No. 123,"Accounting for Stock-Based Compensation." Unissued shares of Class A common stock (639,266 shares) are reserved for the share-for-share conversion rights of the Class B common stock and stock options under the Employee Plans and the Directors Plans. The Company declared a $.10 per share special dividend on its Class A and Class B common shares on February 23, 2000 payable March 31, 2000 to shareholders of record March 15, 2000. (8) 9 FORM 10-Q NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED 4. Earnings per Common Share ------------------------- Earnings per common share are based on the provisions of FAS Statement No. 128, "Earnings per Share." Accordingly, the adoption of this statement did not affect the Company's results of operations, financial position or liquidity. The effects of applying FAS No. 128 on earnings per share and required reconciliations are as follows:
Three Months Ended Six Months Ended March 31, March 31, ------------------------------ ---------------------------- 2001 2000 2001 2000 ------------ ----------- ------------ --------- BASIC EARNINGS PER SHARE Income (Loss) available to common stockholders $ (353,127) $ (174,447) $ (697,690) $ 51,994 Shares denominator 1,217,750 1,199,750 1,217,750 1,199,750 Per share amount $ (.29) $ (.15) $ (.57) $ .04 ========== ========== =========== ========= EFFECT OF DILUTIVE SECURITIES Average shares outstanding 1,217,750 1,199,750 1,217,750 1,199,750 Stock options - - - 6,929 ---------- --------- ---------- --------- 1,217,750 1,199,750 1,217,750 1,206,679 DILUTED EARNINGS PER SHARE Income (Loss) available to common stockholders $ (353,127) (174,447) $ (697,690) $ 51,944 Per share amount $ (.29) $ (.15) $ (.57) $ .04 ========== ========== =========== =========
Options to purchase 184,400 and 176,300 shares of common stock during the second quarter of fiscal 2001 and the second quarter of fiscal 2000, respectively, at prices ranging from $2.925 to $18.00 per share were outstanding but were not included in the computation of diluted earnings per share because the option's effect was antidilutive or the exercise price was greater than the average market price of the common share. During the six month period of fiscal 2001 and the six month period of fiscal 2000 options to purchase 184,400 and 130,500 shares of common stock, respectively, at prices ranging from $2.925 to $18.00 per share were outstanding but were not included in the computation of diluted earnings per share because the option's effect was antidilutive or the exercise price was greater than the average market price of the common shares. (9) 10 FORM 10-Q NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED 5. Segment and Related Information ------------------------------- The Company has adopted SFAS No. 131, Disclosures about Segments of an Enterprise and Related Information, which changes the way the Company reports the information about its operating segments. The Company's four business units have separate management teams and infrastructures that offer different products and services. The business units have been aggregated into two reportable segments: 1.) indicators and gauges and 2.) automotive related diagnostic tools and equipment. INDICATORS AND GAUGES This segment consists of products manufactured and sold primarily to companies in the aircraft and locomotive industry. Within the aircraft market, the primary customers are those companies that manufacture business and pleasure aircraft. Within the locomotive market, indicators and gauges are sold to both original equipment manufacturers and to operators of railroad equipment. AUTOMOTIVE DIAGNOSTIC TOOLS AND EQUIPMENT This segment consists primarily of products designed and manufactured to support the servicing of automotive electronic systems. These products are sold to the aftermarket using a variety of distribution methods. The acquisition of Waekon Industries in 1998 added significant new products and distribution sources for the aftermarket. Included in this segment are fastening control products used by a large automobile manufacturer to monitor and control the nut running process in an assembly plant. This equipment provides high quality threading applications. The product was added in fiscal 1994 when the Company acquired the fastening systems business from Allen-Bradley Company. (10) 11 FORM 10-Q NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED INFORMATION BY INDUSTRY SEGMENT IS SET FORTH BELOW:
Three Months Ended Six Months Ended March 31, March 31, ------------------------------ ------------------------------- 2001 2000 2001 2000 ----------- ---------- ----------- ----------- NET REVENUE Indicators and Gauges $ 715,838 $ 657,015 $ 1,283,384 $ 1,188,977 Automotive Diagnostic Tools and Equipment 3,450,561 3,738,768 6,637,311 8,587,425 ---------- ---------- ----------- ----------- $4,166,399 $4,395,783 $ 7,920,695 $ 9,776,402 ========== ========== =========== =========== INCOME (LOSS) FROM OPERATIONS Indicators and Gauges $ 66,433 $ 176,733 $ 43,889 $ 272,486 Automotive Diagnostic Tools and Equipment (99,087) 298,036 (98,162) 1,235,912 General Corporate Expenses (510,473) (743,316) (1,018,417) (1,428,554) ---------- ---------- ----------- ----------- $ (543,127) $ (268,547) $(1,072,690) $ 79,844 ========== ========== =========== =========== ASSET INFORMATION Indicators and Gauges $ 1,203,773 $ 1,287,980 Automotive Diagnostic Tools and Equipment 8,069,489 9,734,094 Corporate 3,031,002 3,189,005 ----------- ----------- $12,304,264 $14,211,079 =========== =========== GEOGRAPHICAL INFORMATION Included in the consolidated financial statements are the following amounts related to geographical locations: REVENUE: United States $ 3,961,052 $3,967,784 $ 7,504,394 $ 9,212,770 Canada 173,106 82,942 320,555 163,636 Other foreign countries 32,241 345,057 95,746 399,996 ---------- ---------- ----------- ----------- $ 4,166,399 $4,395,783 $ 7,920,695 $ 9,776,402 =========== ========== =========== ===========
All export sales to Canada and other foreign countries are made in U.S. dollars. (11) 12 FORM 10-Q ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Results of Operations, Second Quarter (January 1, 2001 through March 31, 2001) Fiscal 2001 Compared to Second Quarter Fiscal 2000 Reportable Segment Information ------------------------------ The Company has determined that it has two reportable segments: 1) indicators and gauges and 2) automotive related diagnostic tools and equipment. The indicators and gauges segment consists of products manufactured and sold primarily to companies in the aircraft and locomotive industry. Within the aircraft market, the primary customers are those companies that manufacture business and pleasure aircraft. Within the locomotive market, indicators and gauges are sold to both original equipment manufacturers and to operators of railroad equipment. Revenue in this segment was $715,838 and $657,015 for the second quarter of fiscal 2001 and fiscal 2000, respectively, and $1,283,384 and $1,188,977 for the first six months of fiscal 2001 and fiscal 2000, respectively. The automotive diagnostic tools and equipment segment consists primarily of products designed and manufactured to support the servicing of automotive electronic systems. These products are sold both directly to the end user and to the aftermarket using a variety of distribution methods. Included in this segment are fastening control products used primarily by a large automobile manufacturer to monitor and control the nut running process in an assembly plant. Revenue in this segment was $3,450,561 and $3,738,768 for the second quarter of fiscal 2001 and fiscal 2000, respectively, and $6,637,311 and $8,587,425 for the first six months of fiscal 2001 and fiscal 2000, respectively. Results of Operations --------------------- Product sales for the quarter ended March 31, 2001 were $3,829,287 versus $4,013,571 for the quarter ended March 31, 2000. The 4.6% decrease in product sales in the current quarter was volume related and due primarily to a decrease in fastening systems sales. The Company anticipates that the level of product sales experienced in the second quarter is expected to increase modestly in the third and fourth quarters of the fiscal year based on current quote and order levels within the Company's automotive product segment. Service sales for the quarter ended March 31, 2001 were $337,112 versus $382,212 for the quarter ended March 31, 2000. The current level of service sales is expected to continue for the balance of the fiscal year. Cost of product sold in the second quarter of fiscal 2001 was $2,511,003 or 65.6% of product sales as compared to $2,210,939 or 55.1% of product sales in the second quarter of 2000. This increase in the cost of product sold percentage was due primarily to a change in product mix and reduced shipment levels. The current cost of product sold percentage is anticipated to decrease slightly during the balance of the fiscal year due to a change in product mix and cost reduction measures implemented in April of 2001. (12) 13 FORM 10-Q Cost of service sold for the quarter ended March 31, 2001 was $280,063 or 83.1% of service sales as compared to $234,692 or 61.4% of service sales in the quarter ended March 31, 2000. The dollar increase was due primarily to an increase in warranty related costs associated with the automotive diagnostic products. Product development expenses were $683,281 in the second quarter of fiscal 2001 or 17.8% of product sales as compared to $753,172 or 18.8% of product sales in the second quarter of fiscal 2000. The level of expenditures incurred during the second quarter of fiscal 2001 will decrease slightly in the last two quarters of fiscal 2001 due to expense reductions implemented in April 2001 that will not be realized until May of 2001. Operating expenses in the most recent quarter were $1,221,028 or 29.3% of total sales versus $1,428,945 or 32.5% of total sales for the same period a year ago. Most of the dollar decrease represents lower marketing expenses applicable to automotive product sales to the aftermarket. The current level of operating expenses is anticipated to decrease slightly in the third and fourth quarters of the fiscal year due to expense reductions implemented in April 2001 that will not be realized until May of 2001. Interest expense was $22,319 in the second quarter of fiscal 2001, as compared to $9,485 in the second quarter of fiscal 2000. This increase was due primarily to an increase in short term borrowings to fund operating activities. The current level of interest expense is expected to continue for the remainder of fiscal 2001. Other income of $8,168 compares with other expense of $27,097 in the same quarter of fiscal 2000. The difference is due to a $34,946 loss on the disposal of equipment in the second quarter of fiscal 2000 that did not reoccur in fiscal 2001. The net loss in the second quarter of fiscal 2001 was $353,127 as compared with a net loss of $174,447 in fiscal 2000. This change was primarily due to a lower gross product margin caused by a change in product mix and lower sales volume, offset, in part, by decreases in product development and operating expense. Unshipped customer orders as of March 31, 2001 were $2,920,000 versus $5,734,000 at March 31, 2000. The primary reason for the decrease is the fulfillment of a large automotive diagnostic product order to a Tier 1 supplier to a large automotive OEM. The Company anticipates that most of the backlog will be shipped in the second half of fiscal 2001. Results of Operations, Six Months Ended March 31, 2001 Compared to Six Months Ended March 31, 2000 ----------------------------------------------------- Product sales for the six months ended March 31, 2001 were $7,160,846 versus $9,137,963 for the same period in fiscal 2000. The decrease is due mostly to lower sales of automotive diagnostic products, specifically emissions inspection products, in the first three months of fiscal 2001 as compared to fiscal 2000. (13) 14 FORM 10-Q The current level of product sales is anticipated to increase modestly over the last six months of the fiscal year based on current quote and order levels within the Company's automotive product segment. Service sales for the six months ended March 31, 2001 were $759,849 compared with $638,439 for the same period in fiscal 2000. The current level of service sales is expected to increase slightly for the balance of the fiscal year. Cost of product sold was $4,659,039 or 65.1% of product sales as compared to $5,038,208 or 55.1% of product sales for the six months ended March 31, 2000. This increase in the cost of product sold percentage was due to a change in product mix and lower sales volumes. The cost of product sold percentage should decrease slightly in the second half of the fiscal year due to a change in product mix and expense reduction measures implemented in April 2001 that will be mostly realized by May of 2001. Cost of service sold was $579,685 or 76.3% of service sales compared with $444,065 or 69.6% of service sales for the six months ended March 31, 2000. The dollar increase was due primarily to an increase in warranty related costs associated with the automotive diagnostic products. Product development expenses were $1,274,015 or 17.8% of product sales as compared to $1,461,805 or 16.0% of product sales for the six months ended March 31, 2000. The dollar decrease is due primarily to cost savings from the closing of the Kirkwood, Pennsylvania facility. The current level of product development expenditures is expected to decrease approximately 15% in the second half of the fiscal year because of expense reduction measures, the full effect of which will be realized in May 2001. Operating expenses were $2,455,369 for the six months ended March 31, 2001 or 31.0% of total sales versus $2,716,583 or 27.8% of total sales for the six months ended March 31, 2000. Most of the dollar decrease represents lower marketing and administrative expenses applicable to the closing of the Kirkwood, Pennsylvania facility. Interest expense was $40,672 for the six months ended March 31, 2001, and $24,432 for the same period in 2000. This increase was due to an increase in short term borrowings to fund operating requirements. The current level of interest expense is expected to continue for the remainder of fiscal 2001. Other income of $15,395 compares with other expense of $11,465 in the same period last year. The difference is due to a $34,946 loss on the disposal of equipment in the second quarter of fiscal 2000. The net loss for the six months ended March 31, 2001 was $697,690 compared with net income of $51,944 for the six months ended March 31, 2000. The change was due primarily to a $1,599,000 reduction in automotive diagnostic product sales. (14) 15 FORM 10-Q Management anticipates that an increase in sales combined with operating efficiencies due, in part, to the restructuring of the Kirkwood, Pennsylvania operation in fiscal 2000 and other cost saving measures implemented in April 2001 will generate sufficient taxable income during the carryforward period to fully realize deferred tax benefits thereby reducing future federal income taxes payable. The contribution and the research and development credit carryforwards begin to expire in 2004 and 2019, respectively. Additionally, the net operating loss carryforward will begin to expire in 2021. In July 2000 the Company closed down its production and sales facility in Kirkwood, Pennsyvania pursuant to a restructuring plan. The expected annual cost savings of approximately $600,000 anticipated in the closing of the Kirkwood, Pennsylvania facility took into consideration possible increases in other expenses that might occur. The savings are expected to be realized in equal amounts per month with similar impact on both future earnings and cash flow, beginning in October 2000. Major expense categories anticipated to be affected are as follows: Applicable to Manufacturing Rent, utilities, insurance $121,000 Production Overhead (Wages) 143,000 Product Development 144,000 Marketing and Administration 192,000 --------- Annual Total $600,000 For the quarter and the six months ended March 31, 2001 the Company achieved the savings that were anticipated. Liquidity and Capital Resources ------------------------------- Total current assets were $8,414,028, $9,891,765 and $10,035,085 at March 31, 2001, September 30, 2000 and March 31, 2000, respectively. The decrease from March to March was due primarily to a $1,279,232 decrease in inventory. The decrease in inventory was due to a significant order shipping in the month of March 2001. Between September 2000 and March 2001 current assets decreased by $1,477,737 due primarily to a $1,253,000 reduction in inventory, a reduction in cash and accounts receivable of $152,000, a reclassification of $204,000 in deferred income taxes to other assets and a $131,000 increase in prepaid expenses and refundable income taxes. Working capital as of March 31, 2001 amounted to $7,080,791. This compares to $7,967,096 a year earlier. Current assets were 6.3 times current liabilities and total cash and receivables were 2.4 times current liabilities. These ratios compare to 4.9 and 1.7, respectively, at March 31, 2000. Internally generated funds of $318,730 during the six months ended March 31, 2001 were adequate to fund the Company's primary non-operating cash requirements consisting of capital expenditures of $115,189 and long-term debt payments of $16,985. Management of the Company believes that cash and cash equivalents together with funds anticipated to be generated by operations and funds available under the Company's credit agreement, will provide the liquidity necessary to support it's current and anticipated capital expenditures through the end of fiscal 2001. (15) 16 FORM 10-Q Shareholders' equity during the six months ended March 31, 2001 decreased by $697,690 which was the net loss during the period. In February 2001 the Company renewed its credit agreement with its financial lender. The agreement expires in February 2002 and provides for a revolving credit facility of $5,000,000 with interest at the bank's prime commercial rate with a LIBOR option and is secured by the Company's inventory, chattel paper, accounts, equipment and general intangibles. The Company remains in compliance with its loan covenants. Year 2000 Readiness Disclosure ------------------------------ The Company has completed its Year 2000 remediation efforts and, since the turn of the century, has not experienced any significant problems internally or with suppliers and customers in connection with this event. The Company does not anticipate making further statements regarding this issue. Forward-Looking Statements -------------------------- The foregoing discussion includes forward-looking statements relating to the business of the Company. These forward-looking statements, or other statements made by the Company, are made based on management's expectations and beliefs concerning future events impacting the Company and are subject to uncertainties and factors (including, but not limited to, those specified below) which are difficult to predict and, in many instances, are beyond the control of the Company. As a result, actual results of the Company could differ materially from those expressed in or implied by any such forward-looking statements. These uncertainties and factors include (a) the Company's dependence upon a limited number of customers, including Ford and General Motors, (b) the highly competitive industry in which the company operates, which includes several competitors with greater financial resources and larger sales organizations, (c) the acceptance in the marketplace of new products and/or services developed or under development by the Company including automotive diagnostic products, fastening systems products and indicating instrument products, and (d) the ability of Company to effectively make the transition from primarily serving OEM customers to serving smaller customers in the automotive aftermarket. ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK - ------------------------------------------------------------------ The Company is exposed to certain market risks from transactions that are entered into during the normal course of business. The Company has not entered into derivative financial instruments for trading purposes. The Company's primary market risk exposure relates to interest rate risk. There were no material changes in the Company's exposure to market risk from September 30, 2000. (16) 17 FORM 10-Q PART II. OTHER INFORMATION - --------------------------- ITEM 4: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS --------------------------------------------------- At the Company's Annual Meeting of Shareholders held on February 21, 2001, the following individuals were elected to the Board of Directors: Votes For Votes Withheld --------- -------------- Robert L. Bauman 1,850,309 3,206 Harry J. Fallon 1,848,909 4,606 T. Harold Hudson 1,850,309 3,206 James T. Martin 1,850,309 3,206 Michael L. Miller 1,850,309 3,206 James Moreland 1,850,309 3,206 Janet H. Slade 1,849,155 4,360 The following proposals were approved at the Company's Annual Meeting: Votes Votes Votes For Against Withheld --- ------- -------- 1. Approval of the adoption of the 2000 Outside Directors Stock Option Plan. 1,502,662 216,807 32,552 2. Approval of the adoption of the 2000 Key Employees Stock Option Plan. 1,500,056 218,581 33,384 For information on how the votes have been tabulated for the above, see the Company's definitive Proxy Statement used in connection with the Annual Meeting of Shareholders held on February 21, 2001. ITEM 5: OTHER EVENTS ------------ In April of 2001 management took steps to reduce non-direct product related expenses throughout the Company by an estimated 20%. The steps included a substantial reduction in personnel and expenditure restrictions in most aspects of the Company's operations. The savings from these measures will mostly be achieved by May of 2001. Included in the reductions was the dismissal of Mr. Eugene Nowakowski the Company's Chief Financial Officer. Mr. Robert Bauman, President and CEO, has been appointed to fill this position temporarily. The Company anticipates that Mr. Gregory Zoloty, who has been the Company's Chief Accounting Officer for 8 years, will be appointed Chief Financial Officer at the next regular meeting of The Board of Directors in May 2001. (17) 18 FORM 10-Q ITEM 6: EXHIBITS AND REPORTS ON FORM 8-K -------------------------------- a) The following exhibits are included herein: (10) Fourth Amendment to Loan Agreement, dated February 19, 2001 by and between the Company and Huntington National Bank. (11) Statement re: Computation of earnings per share. b) The Company did not file any reports on Form 8-K during the three months ended March 31, 2001. SIGNATURE 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. Date May 15, 2001 HICKOK INCORPORATED (Registrant) /s/R. L. Bauman -------------------------------------- R. L. Bauman, Chief Executive Officer, President, and Treasurer /s/G. M. Zoloty -------------------------------------- G. M. Zoloty, Chief Accounting Officer (18) EX-10 2 l87945aex10.txt EXHIBIT 10 1 EXHIBIT 10 FOURTH AMENDMENT TO NOTE AND RESTATED LOAN AGREEMENT ---------------------------------------------------- This Fourth Amendment to Note and Restated Loan Agreement (hereinafter the "Agreement") is entered into as of the 19 day of February, 2001, by and between The Huntington National Bank (hereinafter the "Bank") and Hickok Incorporated (hereinafter the "Borrower"). RECITALS: --------- A. On or about February 28, 1997, Borrower and Bank entered into a certain Restated Loan Agreement (hereinafter the "Loan Agreement"), setting forth the terms of a certain extension of credit to Borrower by Bank; and B. In connection with the execution of the Loan Agreement, Borrower executed and delivered to Bank a certain Revolving Credit Note in the original principal amount of Five Million and 00/100 Dollars ($5,000,000.00) dated February 28, 1997 (hereinafter the "Revolving Note") payable on the terms and conditions set forth therein; and C. Borrower and Bank executed a certain FIRST MODIFICATION AND AMENDMENT TO REVOLVING CREDIT NOTE and a certain FIRST AMENDMENT TO LOAN AGREEMENT, both dated as of February 18, 1998; a certain SECOND MODIFICATION AND AMENDMENT TO REVOLVING CREDIT NOTE, a certain ADDENDUM TO NOTE and a certain SECOND AMENDMENT TO LOAN AGREEMENT, all dated as of February 26, 1999; and a certain THIRD MODIFICATION AND AMENDMENT TO REVOLVING CREDIT NOTE and a certain THIRD AMENDMENT TO LOAN AGREEMENT, both dated as of February 15, 2000, all changing certain terms of the Revolving Note and/or the Loan Agreement as further set forth therein (hereinafter collectively the "Amendments"); and D. Borrower has requested and Bank has agreed to further amend the Revolving Note and the Loan Agreement on the terms and conditions set forth herein. NOW, THEREFORE, in consideration of the mutual covenants, agreements and promises contained herein, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the parties hereto for themselves, their successors and assigns do hereby agree, represent and warrant as follows: 1. DEFINITIONS. All capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Loan Agreement. 2. LOAN AGREEMENT IN EFFECT. Except as set forth herein or in the Amendments, the Loan Agreement and all documents executed in connection therewith shall remain in full force, are expressly reaffirmed and incorporated herein by this reference, and shall remain in full force and effect and continue to govern and control the relationship between Borrower and Bank. Nothing contained herein 2 EXHIBIT 10 or in the Amendments shall affect or impair any right or power which Bank may have thereunder. To the extent of any inconsistency this Agreement and the Amendments shall govern and control. 3. AMENDMENT TO SECTION OF REVOLVING NOTE CAPTIONED PAYMENT SCHEDULE. The second sentence of the Section of the Revolving Note captioned PAYMENT SCHEDULE, as amended, shall be further to read as follows: Subject to an Occurrence of Default described below, and the provisions of the Loan Agreement, the outstanding principal balance, together with any accrued but unpaid interest, shall be due and payable in full on February 28, 2002. 4. AMENDMENT TO SECTION 2.1 OF THE LOAN AGREEMENT. Section 2.1 of the Loan Agreement, as amended, shall be further amended by deleting the date "February 28, 2001" and by inserting in its place the date "February 28, 2002." 5. AMENDMENT TO SECTION 2.4(b)(i) OF THE LOAN AGREEMENT. Section 2.4(b)(i) of the Loan Agreement shall be amended by deleting the phrase "based upon reference to information appearing on the display designated as page "LIBOR" on the Reuters Monitor Money Rate Service (or such other page as may replace the LIBOR page on that service for the purpose of displaying London interbank offered rates of major banks)" and by inserting in its place the phrase "based upon information which appears on page LIBOR01, captioned British Bankers Assoc. Interest Settlement Rates, of the Reuters America Network, a service of Reuters America Inc. (or such other page that may replace that page on that service for the purpose of displaying London interbank offered rates; or, if such service ceases to be available or ceases to be used by the Bank, such other reasonably comparable money rate service as the Bank may select)." 6. FACILITY FEE AND EXPENSES. As required under the Loan Agreement, Borrower shall pay a facility fee of $5,000.00 upon execution hereof, and shall reimburse the Bank upon demand for all out-of-pocket costs, charges and expenses of the Bank (including reasonable fees and disbursements of legal counsel to Bank in connection with the preparation, negotiation, execution and delivery of this Agreement and the other agreements or documents relating hereto or required hereby). 7. CROSS-DEFAULT. To the extent authorized by law, Borrower agrees that a breach or default under this Agreement, the Amendments, the Revolving Note, the Loan Agreement or any other document, whether previously, now, or hereafter executed and delivered to Bank shall constitute a default under any and every other document executed and delivered to Bank by Borrower at any time. 8. WAIVER OF CONTRIBUTION RIGHTS. Borrower waives any claim or other right it may have or hereafter acquire against any other person that is primarily or contingently liable on the Revolving Note, including without limitation any right of subrogation, reimbursement, exoneration, contribution, indemnification and any right to participation in any claim or remedy of Bank against Borrower or any collateral security therefor. 9. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and inure to the benefit of Borrower and Bank and their respective successors, heirs (where appropriate) and assigns; provided, 3 EXHIBIT 10 however, that the foregoing shall not authorize any assignment by Borrower of its rights or duties hereunder. Bank does not undertake to give or to do or refrain from doing anything directly to or for the benefit of any person other than Borrower, and, other than as described herein. Although third parties may incidentally benefit from this Agreement, there are no intended beneficiaries other than Borrower and Bank. 10. INDULGENCE: MODIFICATIONS. No delay or failure of Bank to exercise any right, power or privilege hereunder shall affect such right, power or privilege nor shall any single or partial exercise thereof preclude any further exercise thereof, nor the exercise of any other right, power or privilege. The rights of Bank hereunder are cumulative and are not exclusive of any rights or remedies which Bank would otherwise have except as modified herein. No amendment, modification, supplement, termination, consent or waiver of or to any provision of this Agreement, the Revolving Note and any documents executed in connection therewith, nor any consent to any departure therefrom, shall in any event be effective unless the same shall be in writing and signed by or on behalf of Bank. 11. WAIVERS VOLUNTARY. The releases and waivers contained in this Agreement are freely, knowingly and voluntarily given by each party, without any duress or coercion, after each party has had opportunity to consult with counsel and has carefully and completely read all of the terms and provisions of this Agreement. 12. GOVERNING LAW AND VENUE. This Agreement is made in the State of Ohio and the validity of this Agreement, any documents incorporated herein or executed in connection herewith, and (notwithstanding anything to the contrary therein) the Revolving Note and all documents executed in connection therewith, and the construction, interpretation, and enforcement thereof, and the rights of the parties thereto shall be determined under, governed by, and construed in accordance with the internal laws of the State of Ohio, without regard to principles of conflicts of law. The parties agree that all actions or proceedings arising in connection with this Agreement, any documents incorporated herein or executed in connection herewith, the Revolving Note and any and all other documents executed in connection therewith, shall be tried and litigated only in the Federal District Court for the Southern District of Ohio or the state courts of Franklin County. The parties hereto waive any right each may have to assert the doctrine of forum NON CONVENIENS or to object to venue to the extent any proceeding is brought in accordance with this Section. Service of process, sufficient for personal jurisdiction in any action against Borrower, may be made by registered or certified mail, return receipt requested, to its addresses set forth in the Loan Agreement. 13. EXECUTION IN COUNTERPARTS. This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which counterpart, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same agreement. This Agreement shall become effective upon the execution of a counterpart hereof by each of the parties hereto. 14. SEVERABILITY. Should any part, term or provision of this Agreement be by the courts determined to be illegal, unenforceable or in conflict with any law of the State of Ohio, federal law or any other applicable law, the validity and enforceability of the remaining portions or provisions of this Agreement shall not be affected thereby. 4 EXHIBIT 10 15. FURTHER ASSURANCE. Borrower agrees to execute such other and further documents and instruments as Bank may request to implement the provisions of this Agreement. 16. INTEGRATION. This Agreement is intended by the parties as the final expression of their agreement and therefor incorporates all negotiations of the parties hereto and is the entire agreement of the parties hereto. No party shall be bound by anything not expressed in writing. The Loan Agreement, as amended herein or in the Amendments, supersedes all prior agreements entered into by the parties except as set forth herein or in the Amendments. Borrower acknowledges that it is relying on no written or oral agreement, representation, warranty, or understanding of any kind made by Bank or any employee or agent of Bank except for the agreements by Bank set forth herein, in the Amendments, in the Revolving Note and any and all other documents executed in connection therewith. Except as expressly set forth in this Agreement or the Amendments, the Revolving Note and all other documents executed in connection therewith remain unchanged and in full force and effect. This Agreement shall be construed without regard to any presumption or rule requiring that it be construed against the party causing this Agreement or any part hereof to be drafted. 17. REVERSAL OF PAYMENTS. If Bank receives any payments which are subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be paid to a trustee, debtor-in-possession, receiver or any other party under any Bankruptcy law, common law, equitable cause or otherwise, then, to such extent, the obligations or part thereof intended to be satisfied by such payments shall be reversed and continue as if such payments had not been received by Bank. 18. WAIVER OF A JURY TRIAL. BANK AND BORROWER ACKNOWLEDGE AND AGREE THAT THERE MAY BE A CONSTITUTIONAL RIGHT TO A JURY TRIAL IN CONNECTION WITH ANY CLAIM, DISPUTE OR LAWSUIT ARISING BETWEEN OR AMONG THEM, BUT THAT SUCH RIGHT MAY BE WAIVED. ACCORDINGLY, THE PARTIES AGREE THAT NOTWITHSTANDING SUCH CONSTITUTIONAL RIGHT, IN THIS COMMERCIAL MATTER THE PARTIES BELIEVE AND AGREE THAT IT SHALL BE IN THEIR BEST INTEREST TO WAIVE SUCH RIGHT, AND, ACCORDINGLY, HEREBY WAIVE SUCH RIGHT TO A JURY TRIAL, AND FURTHER AGREE THAT THE BEST FORUM FOR HEARING ANY CLAIM, DISPUTE OR LAWSUIT, IF ANY, ARISING IN CONNECTION WITH THIS AGREEMENT, THE REVOLVING NOTE AND ALL DOCUMENTS EXECUTED IN CONNECTION THEREWITH OR THE RELATIONSHIP AMONG BORROWER AND BANK SHALL BE A COURT OF COMPETENT JURISDICTION SITTING WITHOUT A JURY. 19. WARRANT OF ATTORNEY. Borrower authorizes any attorney at law to appear in any Court of Record in the State of Ohio or in any other state or territory of the United States of America after the above indebtedness becomes due, whether by acceleration or otherwise, to waive the issuing and service of process, and to confess judgment against Borrower in favor of the Bank for the amount then appearing due together with costs of suit, and thereupon to waive all errors and all rights of appeal and stays of execution. 5 EXHIBIT 10 IN WITNESS WHEREOF, Borrower and Bank have executed this Agreement as of the date set forth above. WARNING - BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT TRIAL. IF YOU DO NOT PAY ON TIME A COURT JUDGMENT MAY BE TAKEN AGAINST YOU WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT FROM YOU REGARDLESS OF ANY CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS PART TO COMPLY WITH THE AGREEMENT, OR ANY OTHER CAUSE. HICKOK INCORPORATED By: /s/ Robert L. Bauman ---------------------------------- Name: Robert L. Bauman -------------------------------- Its: President --------------------------------- THE HUNTINGTON NATIONAL BANK By: /s/ Terry D. Coreno ---------------------------------- Name: Terry D. Coreno -------------------------------- Its: Vice President --------------------------------- 6 EXHIBIT 10 ACKNOWLEDGMENT AND CONSENT OF GUARANTOR The undersigned Guarantor acknowledges and consents to the foregoing amendments and modifications as set forth above, and hereby acknowledges the validity, existence and continuance of the undersigned's Continuing Guaranty Unlimited dated February 28, 1997. WARNING - BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT TRIAL. IF YOU DO NOT PAY ON TIME A COURT JUDGMENT MAY BE TAKEN AGAINST YOU WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT FROM YOU REGARDLESS OF ANY CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS PART TO COMPLY WITH THE AGREEMENT, OR ANY OTHER CAUSE. SUPREME ELECTRONICS CORP. Signed in the presence of /s/ Carmelita Gerome By: /s/ Robert L. Bauman - ------------------------------ ---------------------------------- Name: Carmelita Gerome ------------------------ Name Robert L. Bauman /s/ E. Nowakowski ------------------------------- - ------------------------------ Name: E. Nowakowski Its: Chairman --------------------------------- EX-11 3 l87945aex11.txt EXHIBIT 11 1 FORM 10-Q EXHIBIT 11 HICKOK INCORPORATED CONSOLIDATED STATEMENT OF COMPUTATION OF EARNINGS PER COMMON SHARE AND COMMON SHARE EQUIVALENTS
Three Months Ended Six Months Ended March 31, March 31, --------------------------- ------------------------- 2001 2000 2001 2000 -------- --------- --------- ------ NET INCOME - ---------- Net income (loss) applicable to common shares for basic earnings per share $(353,127) $(174,447) $(697,690) $ 51,944 ========= ========= ========= ========= Net income (loss) applicable to common shares for diluted earnings per share $(353,127) $(174,447) $(697,690) $ 51,944 ========= ========= ========= ========= SHARES OUTSTANDING - ------------------ Weighted average shares for basic earnings per share 1,217,750 1,199,750 1,217,750 1,199,750 Net effect of dilutive stock options - based on the treasury stock method using year-end market price, if higher than average market price - * - * - * 6,929 --------- --------- --------- --------- Total shares for diluted earnings per share 1,217,750 1,199,750 1,217,750 1,206,679 --------- --------- --------- --------- Basic Earnings Per Common Share $ (.29) $ (0.15) $ (.57) $ 0.04 ========= ========= ========= ========= Diluted Earnings Per Common Share $ (.29) $ (0.15) $ (.57) $ 0.04 ========= ========= ========= =========
*Net effect of stock options was antidilutive for the period. -----END PRIVACY-ENHANCED MESSAGE-----