-----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, BmgA+v8xRbGBVjFDN6agzg22UDSUyeRKP0yHL0FY9ganggZnibeeWjJFiQBRm6MJ kZBVoPY7f/qOGlbx96HD2A== 0000950136-96-000753.txt : 19960830 0000950136-96-000753.hdr.sgml : 19960830 ACCESSION NUMBER: 0000950136-96-000753 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960829 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: INDUSTRIAL ACOUSTICS CO INC CENTRAL INDEX KEY: 0000050253 STANDARD INDUSTRIAL CLASSIFICATION: GENERAL INDUSTRIAL MACHINERY & EQUIPMENT, NEC [3569] IRS NUMBER: 131713318 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-03680 FILM NUMBER: 96623343 BUSINESS ADDRESS: STREET 1: 1160 COMMERCE AVE CITY: BRONX STATE: NY ZIP: 10462 BUSINESS PHONE: 7189318000 MAIL ADDRESS: STREET 1: 1160 COMMERCE AVENUE CITY: BRONX STATE: NY ZIP: 10462 10-Q 1 FORM 10-Q FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20459 Quarterly Report under Section 13 or 15 (d) of the Securities Act of 1934 For Quarter Ended June 30, 1996 Commission File No. 0-3680 - ------------------------------- ------ Industrial Acoustics Company, Inc. - ------------------------------------------------------------------------------ New York 13-1713318 - ------------------------------------------------------------------------------ (State or other jurisdiction of (IRS employer Incorporation or organization) Identification #) 1160 Commerce Avenue, Bronx, New York 10462 - ------------------------------------------------------------------------------ (Address of Principal Executive Offices) (Zip Code) (718) 931-8000 - ------------------------------------------------------------------------------ (Registrant's Telephone Number, including Area Code) - ------------------------------------------------------------------------------ (Former Name, Former Address and Former Fiscal Year, if changed from 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 (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 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. 2,978,961 ----------------------------- INDUSTRIAL ACOUSTICS COMPANY, INC. & SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995
Unaudited Six months ended Three months ended ------------------------------------------ June 30 June 30 June 30 June 30 ------------------------------------------ 1996 1995 1996 1995 ------------------------------------------ (In thousands, except per share data) REVENUES Net Sales $ 35,818 $ 30,907 $ 20,496 $ 16,198 Interest Income 772 716 401 347 Other 546 253 165 96 ------------------------------------------ 37,136 31,876 21,062 16,641 ------------------------------------------ COST AND EXPENSES Cost of Products Sold 30,649 28,232 16,165 14,402 Selling General and Administrative Expenses 5,899 5,961 3,170 2,965 Interest 373 272 210 104 ------------------------------------------ 36,921 34,465 19,545 17,471 ------------------------------------------ Income(Loss)before provision/ (Benefit) for income taxes 215 (2,589) 1,517 (830) Provision/(benefit) for income taxes 187 (964) 429 (385) ------------------------------------------ Net Income (Loss) $ 28 ($1,625) $ 1,088 ($445) ========================================== PER COMMON SHARE DATA: Net Income (Loss) $ 0.01 ($0.55) $ 0.37 ($0.15) ========================================== Dividends per Common Share $ 0.10 $ 0.10 Average number Common Share Outstanding 2,979 2,979 2,979 2,979
INDUSTRIAL ACOUSTICS COMPANY, INC. & SUBSIDIARIES CONSOLIDATED BALANCE SHEETS JUNE 30, 1996
Unaudited June 30, 1996 December 31, 1995 ------------------------------------- (In thousands, except per share data) ASSETS CURRENT ASSETS Cash and Cash Equivalents $ 514 $ 1,506 Short-term Investments, available for sale 528 955 Receivables 25,710 26,657 Costs and Estimated Earnings in Excess Of Billings on Uncompleted Contracts 6,236 7,336 Inventories 3,978 3,578 Income Taxes 55 Deferred Income Taxes Prepaid Expenses 1,168 1,389 ------------------------------------- TOTAL CURRENT ASSETS 38,189 41,421 MARKETABLE SECURITIES, Available for sale 21,568 21,966 PROPERTY, PLANT AND EQUIPMENT - Net 11,877 11,793 DEFERRED INCOME TAXES 319 OTHER ASSETS 643 536 ------------------------------------- TOTAL ASSETS $72,596 $75,716 =====================================
INDUSTRIAL ACOUSTICS COMPANY, INC. & SUBSIDIARIES CONSOLIDATED BALANCE SHEETS JUNE 30, 1996
Unaudited June 30, 1996 December 31, 1996 ------------------------------------- (In thousands, except per share data) LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Loans Payable $ 13,857 $ 11,169 Accounts Payable and Accrued Expenses 11,858 15,757 Income Taxes 306 Deferred Income taxes 8 9 Customer Deposits 655 307 Current Portion of Long-term Debt and Capital Lease Obligations 54 58 Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts 461 993 ------------------------------------- TOTAL CURRENT LIABILITIES $ 26,893 $ 28,599 CAPITAL LEASE OBLIGATIONS 3,120 3,145 DEFERRED INCOME TAXES 261 DEFERRED COMPENSATION 1,310 1,277 ------------------------------------- TOTAL LIABILITIES $ 31,323 $ 33,282 ===================================== COMMITMENTS SHAREHOLDERS' EQUITY Common Stock, par value $0.10 a share; authorized 5,000 shares; issued and outstanding 2,979 in 1996 and 1995 excluding 87 shares in treasury at par value 298 298 Additional Paid-in Capital 2,223 2,223 Equity adjustments: Cumulative Currency Translation Adjustments (294) (345) Net unrealized (loss)/gain on marketable securities (486) 454 Retained Earnings 39,532 39,804 ------------------------------------- TOTAL SHAREHOLDERS' EQUITY $ 41,273 $ 42,434 ===================================== TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY $ 72,596 $ 75,716 =====================================
INDUSTRIAL ACOUSTICS COMPANY, INC. & SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 1996 and 1995
Unaudited June 30, 1996 June 30, 1995 ------------------------------ Net cash (used in)/provided by operating activities (1,903) 280 Investing Activities Purchase of property, plant and equipment, net (849) (538) Sale of investments and marketable securities 12,107 1,582 Purchase of investments and marketable securities (12,731) (1,935) ------------------------------ Net cash (used in)/provided by investing activities (1,473) (891) ------------------------------ Financing Activities Dividends paid (298) (298) Short Term Loan 2,730 (1,057) Payments on long term debt and capital less obligations (29) (91) ------------------------------ Net cash provided by/(used in) financing activities 2,403 (1,446) ------------------------------ Effect of exchange rate on changes on cash (18) 257 ------------------------------ Decrease in Cash and Cash Equivalents (991) (1,800) Cash and cash equivalents at beginning of period 1,506 3,273 ------------------------------ Cash and cash equivalents at end of period $ 515 $ 1,473 ==============================
Basis of Presentation The accompanying unaudited condensed 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 Rule 10-01 of regulations S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustment are of a normal recurring nature. Operating results for the six month period ended June 30, 1996 are not necessarily indicative of the results that may be expected for the year ending December 31, 1996. For further information, refer to the consolidated financial statements and footnotes included in the Company's annual report on Form 10-K for the year ended December 31, 1995. ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Pre Tax Income for the six month period ended June 30, 1996 of $215,000 shows a dramatic improvement over the $2,589,000 loss suffered in the same period last year. However, the domestic profits earned were offset by losses at IAC Ltd. in the United Kingdom. Sales for the three months ended June 30, 1996 increased 27% compared to the same period last year. The increased volume, combined with a 17% reduction in Domestic Cost of Products Sold, has resulted in a gross profit increase from $1,796,000 to $4,331,000. Other income is up because the 1995 results included losses on the sale of investments which did not recur in 1996. The increase in selling, general and administrative expenses can be attributed to legal expenses in the successful defense of a patent lawsuit. Interest expense is up because of higher borrowings and interest rates. Pre Tax Income for the quarter of $1,517,000 (compared to an $830,000 loss in 1995) is offset by a $427,000 tax provision resulting in an after tax profit of $1,090,000 or 37 cents a share (against an after tax loss of $445,000 or 15 cents a share in 1995). Sales for the six months ended June 30, 1996 increased 16% compared to the same period last year. The increased volume, combined with an 8% reduction in Domestic Cost of Products Sold, has resulted in a gross profit increase from $2,675,000 to $5,169,000. Other income is up because the 1995 results included losses on other sale of investments which did not recur in 1996. Selling, general and administrative expenses are close to 1995 levels because the legal fees associated with the patent lawsuit are offset by lower bonus expenses. Interest expense is up due to higher borrowing and interest rates. Pre Tax Income for the six months of $215,000 (compared to a $2,589,000 loss in 1995) is offset by a $187,000 provision for taxes resulting in an after tax profit of $28,000 or 1 cent a share (compared to an after tax loss of $1,625,000 or 55 cents a share in 1995). The reduction in accounts payable and accrued expenses has been financed by cash flow from receivables, a reduction in cash and additional bank borrowings. Order intake for the period ended June 30, 1996 was $32,100,000 (which is low due to the very low order input in Aviation business both in the domestic and foreign operations) for a closing backlog of $50,867,000 compared to $54,892,000 at December 31, 1995. The Company's financial position remains strong and should assure adequate capital for the projects the Company is actively pursuing. PART II- OTHER INFORMATION ITEM 1 - LEGAL PROCEEDINGS The Company is involved as a defendant in several actions instituted by others in the ordinary course of business. In the opinion of management, none of the actions will result in liability. ITEM 5 - OTHER MATERIALLY IMPORTANT FACTS SIGNATURE --------- Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be singed on its behalf by the undersigned thereunto duly authorized. INDUSTRIAL ACOUSTICS COMPANY, INC. Date: August 2, 1996 By /s/ Arnold W. Kanarek ------------------------------------- Arnold W. Kanarek Senior Vice President, Secretary Date: August 2, 1996 By /s/ Robert N. Bertrand ------------------------------------- Robert N. Bertrand Vice President, Finance, Treasurer EX-27 2 ARTICLE 5 FINANCIAL DATA SCHEDULE
5 1,000 6-MOS DEC-31-1996 JUN-30-1996 514 528 25,710 6,236 3,978 38,189 11,877 0 72,596 26,893 0 0 0 2,979 2,223 72,596 35,818 37,136 30,649 36,921 0 0 373 215 187 28 0 0 0 28 0.01 0.01
-----END PRIVACY-ENHANCED MESSAGE-----