Delaware
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001-05558
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75-1277589
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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o
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Written communications pursuant to Rule 425 under the Securities Act
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
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Exhibit No.
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Description
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99.1
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Press release issued by the Company on June 29, 2012.
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Exhibit No.
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Description
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Press release issued by the Company on August 13, 2012.
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·
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Net sales in the second quarter of 2012 were $31.7 million, an increase of $0.2 million, or 0.5%, compared to the same period in 2011. Volume increases in our Continental and Glit business units more than offset volume decreases in our Gemtex and Wilen business units.
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·
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Gross margin was 11.7% in the second quarter of 2012, an increase from 8.2% in the second quarter of 2011. The increase in gross margin was primarily due to sales mix changes in our Continental operations and decreased inefficiencies experienced in our Wilen operation after the relocation from Atlanta, Georgia to Bridgeton, Missouri in 2010. Gross margin was impacted by an unfavorable variance in our LIFO adjustment of $0.1 million and $0.6 million for 2012 and 2011, respectively, resulting from inventory fluctuations. Excluding the LIFO adjustments, gross margin increased 1.8 percentage points from the second quarter of 2011.
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·
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Selling, general and administrative expenses decreased slightly from $4.7 million for the second quarter of 2011 compared to $4.6 million in the second quarter of 2012.
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·
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Net sales for the six months ended June 29, 2012 were $59.3 million, a decrease of $0.8 million, or 1.3%, compared to the same period in 2011. The majority of the decrease was a result of volume shortfall in our Container and Gemtex business units.
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·
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Gross margin was 10.6% for the six months ended June 29, 2012, a increase of 1.7 percentage points from the same period a year ago. The increase was primarily a result of decreased inefficiencies experienced in our Wilen operation after the relocation from Atlanta, Georgia to Bridgeton, Missouri in 2010. Gross margin was impacted by an unfavorable variance in our LIFO adjustment of $0.2 million and $0.6 million for 2012 and 2011, respectively, resulting from inventory fluctuations. Excluding the LIFO adjustments, gross margin increased 1.0 percentage points from the first half of 2011.
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·
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Selling, general and administrative expenses were $9.4 million for the first half of 2012 and 2011.
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Company contact: |
Katy Industries, Inc.
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James W. Shaffer
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(314) 656-4321
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Three Months Ended
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Six Months Ended
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June 29,
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July 1,
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June 29,
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July 1,
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|||||||||||||
2012
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2011
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2012
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2011
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|||||||||||||
Net sales
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$ | 31,673 | $ | 31,502 | $ | 59,343 | $ | 60,141 | ||||||||
Cost of goods sold
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27,954 | 28,906 | 53,063 | 54,788 | ||||||||||||
Gross profit
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3,719 | 2,596 | 6,280 | 5,353 | ||||||||||||
Selling, general and administrative expenses
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4,610 | 4,716 | 9,362 | 9,359 | ||||||||||||
Loss on disposal of assets
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- | 85 | - | 10 | ||||||||||||
Operating loss
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(891 | ) | (2,205 | ) | (3,082 | ) | (4,016 | ) | ||||||||
Interest expense
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(233 | ) | (425 | ) | (424 | ) | (799 | ) | ||||||||
Other, net
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89 | 110 | 204 | 75 | ||||||||||||
Loss from continuing operations before income tax benefit (expense)
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(1,035 | ) | (2,520 | ) | (3,302 | ) | (4,740 | ) | ||||||||
Income tax benefit (expense) from continuing operations
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(6 | ) | 257 | 1 | 248 | |||||||||||
Loss from continuing operations
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(1,041 | ) | (2,263 | ) | (3,301 | ) | (4,492 | ) | ||||||||
Income from operations of discontinued business (net of tax)
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- | 959 | - | 1,935 | ||||||||||||
Net loss
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$ | (1,041 | ) | $ | (1,304 | ) | $ | (3,301 | ) | $ | (2,557 | ) | ||||
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Net loss
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$ | (1,041 | ) | $ | (1,304 | ) | $ | (3,301 | ) | $ | (2,557 | ) | ||||
Other comprehensive income (loss)
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||||||||||||||||
Foreign currency translation
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(54 | ) | 74 | (6 | ) | 192 | ||||||||||
Total comprehensive loss
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$ | (1,095 | ) | $ | (1,230 | ) | $ | (3,307 | ) | $ | (2,365 | ) | ||||
Income (loss) income per share of common stock - Basic and Diluted
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||||||||||||||||
Loss from continuing operations
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$ | (0.13 | ) | $ | (0.28 | ) | $ | (0.42 | ) | $ | (0.56 | ) | ||||
Discontinued operations
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- | 0.12 | - | 0.24 | ||||||||||||
Net loss
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$ | (0.13 | ) | $ | (0.16 | ) | $ | (0.42 | ) | $ | (0.32 | ) | ||||
Weighted average common shares outstanding:
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||||||||||||||||
Basic and Diluted
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7,951 | 7,951 | 7,951 | 7,951 | ||||||||||||
Other Information:
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LIFO adjustment expense
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$ | 104 | $ | 627 | $ | 225 | $ | 634 |
June 29,
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December 31,
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Assets
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2012
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2011
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Current assets:
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Cash
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$ | 866 | $ | 730 | ||||
Accounts receivable, net
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14,748 | 11,759 | ||||||
Inventories, net
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14,534 | 17,262 | ||||||
Other current assets
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2,925 | 4,086 | ||||||
Total current assets
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33,073 | 33,837 | ||||||
Other assets:
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Goodwill
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665 | 665 | ||||||
Intangibles, net
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2,258 | 2,478 | ||||||
Other
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1,611 | 2,032 | ||||||
Total other assets
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4,534 | 5,175 | ||||||
Property and equipment
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96,571 | 96,363 | ||||||
Less: accumulated depreciation
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(79,110 | ) | (77,562 | ) | ||||
Property and equipment, net
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17,461 | 18,801 | ||||||
Total assets
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$ | 55,068 | $ | 57,813 | ||||
Liabilities and stockholders' equity
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Current liabilities:
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Accounts payable
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$ | 8,480 | $ | 8,928 | ||||
Book overdraft
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733 | 946 | ||||||
Accrued expenses
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10,390 | 10,018 | ||||||
Payable to related party
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2,000 | 1,750 | ||||||
Deferred revenue
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688 | 688 | ||||||
Revolving credit agreement
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15,361 | 14,359 | ||||||
Total current liabilities
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37,652 | 36,689 | ||||||
Deferred revenue
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2,263 | 2,605 | ||||||
Other liabilities
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5,846 | 5,904 | ||||||
Total liabilities
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45,761 | 45,198 | ||||||
Stockholders' equity:
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Convertible preferred stock
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108,256 | 108,256 | ||||||
Common stock
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9,822 | 9,822 | ||||||
Additional paid-in capital
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27,110 | 27,110 | ||||||
Accumulated other comprehensive loss
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(2,368 | ) | (2,361 | ) | ||||
Accumulated deficit
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(112,076 | ) | (108,775 | ) | ||||
Treasury stock
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(21,437 | ) | (21,437 | ) | ||||
Total stockholders' equity
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9,307 | 12,615 | ||||||
Total liabilities and stockholders' equity
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$ | 55,068 | $ | 57,813 |
Six Months Ended
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June 29,
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July 1,
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2012
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2011
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Cash flows from operating activities:
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Net loss
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$ | (3,301 | ) | $ | (2,557 | ) | ||
Income from discontinued operations
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- | (1,935 | ) | |||||
Loss from continuing operations
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(3,301 | ) | (4,492 | ) | ||||
Depreciation and amortization
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2,265 | 2,482 | ||||||
Amortization of debt issuance costs
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89 | 169 | ||||||
Stock-based compensation
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117 | (587 | ) | |||||
Loss on sale or disposal of assets
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- | 10 | ||||||
(830 | ) | (2,418 | ) | |||||
Changes in operating assets and liabilities:
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Accounts receivable
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(2,985 | ) | (3,269 | ) | ||||
Inventories
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2,731 | (2,391 | ) | |||||
Other assets
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1,485 | 327 | ||||||
Accounts payable
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(865 | ) | 3,801 | |||||
Accrued expenses
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501 | (349 | ) | |||||
Payable to related party
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250 | 1,000 | ||||||
Deferred revenue
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(342 | ) | - | |||||
Other
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(177 | ) | 60 | |||||
598 | (821 | ) | ||||||
Net cash used in operating activities
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(232 | ) | (3,239 | ) | ||||
Net cash provided by discontinued operations
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- | 2,306 | ||||||
Net cash used in operating activities
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(232 | ) | (933 | ) | ||||
Cash flows from investing activities:
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Capital expenditures
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(398 | ) | (133 | ) | ||||
Proceeds from sale of assets
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- | 81 | ||||||
Net cash used in investing activities
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(398 | ) | (52 | ) | ||||
Cash flows from financing activities:
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Net borrowings
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1,006 | 1,680 | ||||||
Decrease in book overdraft
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(213 | ) | (562 | ) | ||||
Repayments of term loans
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- | (857 | ) | |||||
Direct costs associated with debt facilities
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- | (264 | ) | |||||
Net cash provided by (used in) financing activities
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793 | (3 | ) | |||||
Effect of exchange rate changes on cash
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(27 | ) | 152 | |||||
Net increase (decrease) in cash
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136 | (836 | ) | |||||
Cash, beginning of period
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730 | 1,319 | ||||||
Cash, end of period
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$ | 866 | $ | 483 | ||||
Reconciliation of free cash flow to GAAP Results:
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Net cash used in operating activities
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$ | (232 | ) | $ | (933 | ) | ||
Capital expenditures
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(398 | ) | (133 | ) | ||||
Free cash flow
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$ | (630 | ) | $ | (1,066 | ) |