-----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, Iiip4Tpoi+ZjEuuJRdzOOvvnJDcsk2b3bgv1FzYe4nHHmBDQNYsMcCzz68WrBBf7 i0Hf2O6T6iSL73C/CGr/Rw== 0000950137-96-000047.txt : 19960410 0000950137-96-000047.hdr.sgml : 19960410 ACCESSION NUMBER: 0000950137-96-000047 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960209 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: LABARGE INC CENTRAL INDEX KEY: 0000057139 STANDARD INDUSTRIAL CLASSIFICATION: COMMUNICATIONS EQUIPMENT, NEC [3669] IRS NUMBER: 730574586 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-05761 FILM NUMBER: 96514014 BUSINESS ADDRESS: STREET 1: 707 NORTH SECOND STREET CITY: ST LOUIS STATE: MO ZIP: 63102-2538 BUSINESS PHONE: 314-231-5960 MAIL ADDRESS: STREET 1: P.O. BOX 14499 CITY: ST. LOUIS STATE: MO ZIP: 63178-4499 FORMER COMPANY: FORMER CONFORMED NAME: DORSETT ELECTRONICS INC DATE OF NAME CHANGE: 19690406 10-Q 1 10-Q 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarter Ended December 31, 1995 Commission file number: 1-5761 - -------------------------------------------------------------------------------- LaBarge, Inc. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) DELAWARE 73-0574586 - ------------------------------------------ ------------------------------ (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) P.O. Box 14499, St. Louis, Missouri 63178 - -------------------------------------------------------------------------------- (Address) (Zip Code) (314) 231-5960 - -------------------------------------------------------------------------------- (Registrant's telephone number, including Area Code) - -------------------------------------------------------------------------------- (Former name, former address and former fiscal year, if changed since 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 January 30, 1996. 15,301,891 shares of common stock. 2 LABARGE, INC. STATEMENTS OF OPERATIONS (Unaudited) (in thousands except per share data)
THREE MONTHS ENDED SIX MONTHS ENDED DECEMBER 31, January 1, DECEMBER 31, January 1, 1995 1995 1995 1995 - ----------------------------------------------------------------------------------------------------------------------------------- NET SALES $ 14,910 $ 16,206 $ 28,271 $ 33,317 - ----------------------------------------------------------------------------------------------------------------------------------- COSTS AND EXPENSES: Cost of sales 12,484 13,323 23,806 27,663 Selling and administrative expenses 1,798 2,055 3,471 4,123 - ----------------------------------------------------------------------------------------------------------------------------------- 14,282 15,378 27,277 31,786 - ----------------------------------------------------------------------------------------------------------------------------------- EARNINGS FROM OPERATIONS 629 828 994 1,531 - ----------------------------------------------------------------------------------------------------------------------------------- Interest expense 327 511 646 1,058 Other income, net 139 177 185 210 - ----------------------------------------------------------------------------------------------------------------------------------- EARNINGS BEFORE INCOME TAXES 441 494 533 683 Income tax expense 27 29 33 41 - ----------------------------------------------------------------------------------------------------------------------------------- NET EARNINGS $ 414 $ 465 500 $ 642 =================================================================================================================================== NET EARNINGS PER COMMON SHARE $.03 $.03 $.03 $.04 =================================================================================================================================== AVERAGE COMMON SHARES OUTSTANDING 15,296 15,227 15,271 15,218 ===================================================================================================================================
See accompanying notes to financial statements. -2- 3 LABARGE, INC. BALANCE SHEET (Unaudited) (dollars in thousands except per share data)
DECEMBER 31, July 2, 1995 1995 - ----------------------------------------------------------------------------------------------------------------------------------- ASSETS CURRENT ASSETS: Cash and cash equivalents $ 216 $ 143 Accounts and notes receivable, net 9,099 9,017 Inventories 15,203 14,133 Prepaid expenses 285 293 Deferred tax assets, net 758 758 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL CURRENT ASSETS 25,561 24,344 - ----------------------------------------------------------------------------------------------------------------------------------- MARKETABLE SECURITIES, AT COST 250 - PROPERTY, PLANT AND EQUIPMENT, NET 2,853 2,676 DEFERRED TAX ASSETS, NET 2,492 2,492 OTHER ASSETS, NET 2,186 2,096 - ----------------------------------------------------------------------------------------------------------------------------------- $ 33,342 $ 31,608 =================================================================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Short-term borrowings $ 6,600 $ 2,500 Current maturities of long-term debt 1,271 1,670 Trade accounts payable 5,826 5,013 Accrued liabilities 2,231 2,392 Current liabilities from discontinued operations - 269 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL CURRENT LIABILITIES 15,928 11,844 - ----------------------------------------------------------------------------------------------------------------------------------- LONG-TERM OBLIGATIONS: Long-term debt 3,598 6,467 - ----------------------------------------------------------------------------------------------------------------------------------- STOCKHOLDERS' EQUITY: Common stock, $.01 par value. Authorized 20,000,000 shares; issued 15,301,891 shares at December 31, 1995 and 15,227,316 shares at July 2, 1995 153 152 Additional paid-in capital 12,630 12,554 Retained earnings 1,033 600 Less stock in treasury; -0- shares at December 31, 1995 and 5,391 shares at July 2, 1995 - (9) - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 13,816 13,297 - ----------------------------------------------------------------------------------------------------------------------------------- $ 33,342 $ 31,608 ===================================================================================================================================
See accompanying notes to financial statements. -3- 4 LABARGE, INC. STATEMENTS OF CASH FLOWS (Unaudited) (dollars in thousands)
SIX MONTHS ENDED DECEMBER 31, January 1, 1995 1995 - ----------------------------------------------------------------------------------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings $ 500 $ 642 Adjustments to reconcile net cash provided by operating activities: Depreciation and amortization 443 544 Accretion of discount on long-term assets from business divestitures (14) (16) Accretion of discount on note from discontinued operations 6 20 Gain on sale of Flippin facility - (154) Changes in assets and liabilities: Accounts and notes receivable, net (332) 1,179 Inventories (1,070) (1,623) Prepaid expenses 9 40 Trade accounts payable 813 (1,166) Accrued liabilities (161) (207) Liabilities of discontinued operations (275) (125) - ----------------------------------------------------------------------------------------------------------------------------------- NET CASH (USED) BY OPERATING ACTIVITIES (81) (866) - ----------------------------------------------------------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES: Additions to property, plant and equipment (540) (297) Additions to other assets of continuing operations (156) (126) Sale of operating facility in Flippin - 9,359 - ----------------------------------------------------------------------------------------------------------------------------------- NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES (696) 8,936 - ----------------------------------------------------------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES: Repayments of long-term debt (769) (5,909) Exercise of stock warrants and options 10 60 Purchase of common stock to treasury 9 - Net change in short-term borrowings 1,600 (2,100) - ----------------------------------------------------------------------------------------------------------------------------------- NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES 850 (7,949) - ----------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN CASH AND CASH EQUIVALENTS 73 121 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 143 140 - ----------------------------------------------------------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 216 $ 261 ===================================================================================================================================
See accompanying notes to financial statements. -4- 5 LABARGE, INC. FORM 10-Q NOTES TO FINANCIAL STATEMENTS (UNAUDITED) 1. FINANCIAL STATEMENTS - BASIS OF PREPARATION The balance sheet at December 31, 1995 and July 2, 1995, the related statements of operations for the three and six months ended December 31, 1995 and January 1, 1995 and the statement of cash flows for the six months ended December 31, 1995 and January 1, 1995 have been prepared by LaBarge, Inc. (the "Company") without audit. In the opinion of management, adjustments of a normal and recurring nature, necessary to present fairly the financial position and the results of operations and cash flows for the aforementioned periods, have been made. Certain information and footnote disclosures normally included in financial statements prepared in conformity with generally accepted accounting principles have been condensed or omitted. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended July 2, 1995. 2. ACCOUNTS AND NOTES RECEIVABLE Accounts and notes receivable consist of the following: (dollars in thousands)
DECEMBER 31, July 2, 1995 1995 - --------------------------------------------------------------------------------------------------------------- Billed shipments, net of progress payments $ 7,120 $ 6,668 Unbilled costs and accrued profits, net of progress payments 1,179 901 - --------------------------------------------------------------------------------------------------------------- Trade receivables - gross 8,299 7,569 Less: Allowance for doubtful accounts (138) (168) - --------------------------------------------------------------------------------------------------------------- Trade receivables - net 8,161 7,401 Current portion of notes receivable 855 1,168 Other current receivables 83 448 - --------------------------------------------------------------------------------------------------------------- $ 9,099 $ 9,017 ===============================================================================================================
Unbilled amounts represent revenues recognized on contracts, less applicable progress payments received, for which billings have not been presented to the customers at the balance sheet dates. Unbilled amounts are usually billed within the month following the closing date as units are delivered to the customer. Progress payments are payments from customers in accordance with contractual terms for contract costs incurred to date. Such payments are credited to the customer at the time of shipment. -5- 6 Notes receivable include a note from a prior divestiture of $251,000, and a note from a former officer of the Company totaling $600,000. Other current receivables represent amounts due from employees for travel advances and other miscellaneous sources. 3. INVENTORIES Inventories consist of the following: (dollars in thousands)
DECEMBER 31, July 2, 1995 1995 - ----------------------------------------------------------------------------------------------------------- Raw materials $ 10,458 $ 8,609 Work in process 5,147 6,181 - ----------------------------------------------------------------------------------------------------------- 15,605 14,790 Less progress payments (402) (657) - ----------------------------------------------------------------------------------------------------------- $ 15,203 $ 14,133 ===========================================================================================================
In accordance with contractual agreements, the government has a security interest in inventories related to contracts for which progress payments have been received. 4. MARKETABLE SECURITIES At December 31, 1995, the Company had $250,000 in common stock of Venisect, Inc. which is valued at cost. -6- 7 5. SHORT- AND LONG-TERM OBLIGATIONS Short-term borrowings, long-term debt and the current maturities of long-term debt consist of the following: (dollars in thousands)
DECEMBER 31, July 2, 1995 1995 - ----------------------------------------------------------------------------------------------------------- SHORT-TERM BORROWINGS: Revolving credit agreement: Balance at period-end $ 6,600 $ 2,500 Interest rate at period-end 10.00% 10.50% Average amount of short-term borrowings outstanding during period (rounded to nearest thousand) $ 4,144 $ 2,472 Average interest rate for period 10.36% 9.70% Maximum short-term borrowings at any month-end $ 7,000 $ 5,000 =========================================================================================================== Total short-term borrowings $ 6,600 $ 2,500 =========================================================================================================== DECEMBER 31, July 2, 1995 1995 - ----------------------------------------------------------------------------------------------------------- LONG-TERM DEBT: Sanwa Business Credit Corporation: Revolving credit agreement $ - $ 2,500 Term loan 430 805 Chemical Bank term loan 714 1,071 12% Subordinated Notes 3,386 3,386 Industrial revenue bond due semiannually through 1997, interest at 8% 180 180 Other 159 195 - ----------------------------------------------------------------------------------------------------------- 4,869 8,137 Less current maturities 1,271 1,670 - ----------------------------------------------------------------------------------------------------------- Total long-term debt $ 3,598 $ 6,467 ===========================================================================================================
The average interest rate was computed by dividing the sum of daily interest costs by the sum of the daily borrowings for the respective periods. At December 31, 1995, the Company has reclassified $2,500,000 of revolving debt from long-term to short-term due to the expiration of its loan agreement on July 3, 1996. The Company intends to negotiate a new loan agreement before this date and will again classify a portion thereof to long-term. -7- 8 6. EARNINGS PER COMMON SHARE Earnings per common share is based on the weighted average number of shares outstanding during the quarter. Also outstanding are the following common stock options: 100,000 shares currently exercisable at $.66 to $1.2375 and 165,000 shares with exercise prices ranging from $1.3125 to $4.378 which are not exercisable at this time. The earliest exercise date of the non-exercisable option is in August 1996. The options are not considered dilutive common stock equivalents for the purposes of the earnings per share calculation. 7. INCOME TAXES The tax benefits from the Company's net operating loss carryforwards, which will more likely than not be realized, have been recorded as an asset. As of December 31, 1995, the net value of this benefit was $3,250,000 and is reported as $758,000 in current assets and $2,492,000 in other assets. The net operating loss carryforwards as of July 2, 1995, for Federal Income Tax purposes, were $20,393,000, which are available to offset future Federal taxable income through 2003. The Company also has investment tax credit carryforwards for Federal income tax purposes of approximately $227,000 which are available to reduce future Federal income taxes through 2001. In addition, the Company has alternative minimum tax credit carryforwards of approximately $245,000 which are available to reduce future regular Federal income taxes over an indefinite period. These carryforwards are the result of losses generated by discontinued operations prior to 1987. 8. CASH FLOWS Total cash payments for interest for the three and six months ended December 31, 1995 were $308,000 and $635,000 compared to $567,000 and $1,117,000 for the three and six months ended January 1, 1995. -8- 9 LABARGE, INC. FORM 10-Q MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATION AND FINANCIAL CONDITION LaBarge, Inc. engineers, manufactures, tests and sells sophisticated electronic control systems and devices and complex interconnect assemblies under contract with its customers. Markets for the Company's products are the defense electronics, telecommunications, medical equipment, aerospace, geophysical/energy and various other commercial/industrial markets. The Company employs approximately 650 people. On December 2, 1994, the Company completed the sale of the on-going business of its operation in Flippin, Arkansas to Avnet, Inc. In the transaction, Avnet purchased substantially all of the assets of the Flippin operation and the related business for approximately $10,455,000 cash and assumed liabilities of approximately $2,900,000. The proceeds from the sale were used to reduce debt. The Company continues to operate its facilities in Huntsville and Berryville, Arkansas; Tulsa, Oklahoma and Joplin, Missouri. The Company will continue, through its remaining operations, to focus on design and manufacture of high-tech electronic systems, devices and interconnect systems with special emphasis on higher value-added products. The Flippin facility manufactured cable assemblies for a variety of markets including computer products and medical equipment. Revenues for the six and three months ended January 1, 1995 were approximately $7.3 and $2.6 million (22% of the Company total) respectively. The December, 1994 sale of the Flippin facility allowed the exchange and redemption of 15% Subordinated Notes due in May, 1997. Both transactions were part of a Company plan to strengthen its balance sheet. The Company believes the stronger balance sheet will allow it much greater flexibility to invest in growth opportunities at its other facilities. The Company's backlog of firm, unshipped orders at December 31, 1995 was approximately $64 million compared to $47 million at January 1, 1995. The backlog at December 31, 1995 for the products described below consisted of approximately $34.6 million of orders for various defense products, the majority of which contain cancellation and termination provisions, and $29.4 million of orders for commercial products. Approximately $6.7 million of the total backlog is not scheduled to ship within the next 12 months pursuant to the shipment schedules contained in those contracts. Substantially all of the Company's contracts with the United States Government and subcontracts with prime contractors of the United States Government are firm fixed-price contracts. Under firm fixed-price contracts, work is performed and paid for at a fixed amount without adjustment for the actual costs experienced in connection with the -9- 10 contracts. Therefore, unless the customer actually or constructively alters or impedes the work performed, all risk of loss due to cost overruns is borne by the Company. The Company continues to pursue defense-related business. The Company currently has orders on the AEGIS program totaling $9.5 million. AEGIS is the most advanced shipboard anti-aircraft and anti-missile system in the world. All work on this contract is being performed in Huntsville, Arkansas. Sales to Lockheed Martin represented approximately 32% of total Company sales for the three and six months ended December 31, 1995. The Company also serves the telecommunications, medical equipment, commercial aerospace, geophysical and other commercial/industrial markets. The Company has aggressively expanded its commercial business over the past several years and intends to continue to do so. Non-defense business represented approximately 43% of total Company sales for the quarter and 40% for the six months. The Company manufactures diverse products based on customer requirements, which incorporate many capabilities including cable and harnesses, printed circuit boards and complete assemblies. As in the defense market, all production is on a contract basis. The Company has developed a portable medical laser (the Laser Lancet(TM)) under a contract from Venisect, Inc. One application of the laser is to perforate the skin to draw small amounts of blood for testing. Phase II FDA clinical trials for this application are complete. A 510(K) request for marketing and manufacturing approval of this application was filed with the FDA in December and is currently being evaluated. The Company anticipates approval for commercial use to be received this fiscal year. The impact on the Company's sales cannot yet be determined. In late January 1996, the FDA approved the commencement of human clinical trials of a second Laser Lancet(TM) application for use in transdermal drug delivery. Venisect scientists have shown that the simple, painless alteration of the outermost layer of skin with the Laser Lancet(TM) results in clinically significant improvement in the ability to deliver a wide range of drugs transdermally. -10- 11 LABARGE, INC. FORM 10-Q MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION RESULTS OF OPERATIONS SIX MONTHS ENDED DECEMBER 31, 1995 COMPARED TO SIX MONTHS ENDED JANUARY 1, 1995 In December 1994, the Company sold its Flippin, Arkansas operation and its related business for approximately $10,455,000. Sales, related costs and profits though November, 1994 are included in operating results for the six months ended January 1, 1995 and may distort the comparative data presented. Net sales for the six months ended December 31, 1995 were $28,271,000 compared to $33,317,000 for the six months ended January 1, 1995. Sales from continuing operations were up approximately $2.3 million or 9% year-to-year. Flippin accounted for $7.3 million in sales for the six months ended January 1, 1995 Gross profit for the six months ended December 31, 1995 was $4,465,000, 15.8% of sales, compared to $5,654,000, 17.0% of sales, for the six months ended January 1, 1995. The sale of Flippin resulted in lower sales relative to fixed costs, which cause the margin to be lower. Selling and administrative expenses for the six months ended December 31, 1995 were $3,471,000, 12.3%of sales, compared to $4,123,000, 12.4% of sales, for the six months ended January 1, 1995. Earnings from operations were $994,000, 3.5% of sales, for the six months ended December 31, 1995, compared to $1,531,000, 4.6% of sales, for the six months ended January 1, 1995. Interest expense for the six months ended December 31, 1995 was $646,000, compared to $1,058,000 for the six months ended January 1, 1995. Lower debt levels continue to cause lower interest costs. Other income was $185,000 and $210,000 for the six months ended December 31, 1995 and January 1, 1995, respectively. Included in other income for the six months ended December 31, 1995 is approximately $100,000 in interest and reserve adjustments related to cash in conjunction with the Flippin sale. Included in the other income for the period ended January 1, 1995, is $154,000 in gain from the sale of the Flippin facility. The remainder of this income represents accretion of a discount on a note receivable. -11- 12 The Company has significant net operating loss carryforwards which offset most of its income tax liability. Income tax expense for the six months ended December 31, 1995 and January 1, 1995, respectively, was $33,000 and $41,000. Net earnings for the six months ended December 31, 1995 were $500,000, compared to $642,000 for the six months ended January 1, 1995. Earnings per common share were $.03 for the six months ended December 31, 1995 and $.04 for the six months ended January 1, 1995. RESULTS OF OPERATIONS THREE MONTHS ENDED DECEMBER 31, 1995 COMPARED TO THREE MONTHS ENDED JANUARY 1, 1995 Net sales for the three months ended December 31, 1995 were $14,910,000 compared to $16,206,000 for the three months ended January 1, 1995. Excluding Flippin's sales from the three months ended January 1, 1995, the continuing business showed a sales gain of approximately 10.1% year-to-year for the three-month period. Gross profit for the three months ended December 31, 1995 was $2,427,000, 16.3% of sales, compared to $2,883,000, 17.8% of sales, for the three months ended January 1, 1995. Due to lower planned sales volume caused by the sale of the Flippin business and fixed costs involved in pursuing new business opportunities, margins are down approximately 1.5% of sales year-to-year. Selling and administrative expenses were $1,798,000, 12.1% of sales, for the three months ended December 31, 1995, compared to $2,055,000, 12.7% of sales, for the three months ended January 1, 1995. Earnings from operations for the three months ended December 31, 1995 were $629,000, 4.2% of sales, compared to $828,000, 5.1% of sales, for the three months ended January 1, 1995. Interest expense for the three months ended December 31, 1995 was $327,000, compared to $511,000 for the three months ended January 1, 1995. Lower debt levels continue to keep interest costs down. Other income was $139,000 and $177,000 for the three months ended December 31, 1995 and January 1, 1995, respectively. Approximately $100,000 of other income for the three months ended December 31, 1995 is due to interest and reserve adjustments related to cash in conjunction with the Flippin sale. A gain of $154,000 from the sale of the Flippin facility is included in other income for the three months ended January 1, 1995. The Company continues to have significant tax loss carryforwards which, in accordance with SFAS 109, results in $3.25 million of deferred tax assets, net of the related valuation allowance as of July 2, 1995. Income tax expense for the three months ended December 31, 1995 and January 1, 1995 was $27,000 and $29,000, respectively. -12- 13 Net earnings for the three months ended December 31, 1995 were $414,000 compared to $465,000 for the three months ended January 1, 1995. Earnings per common share were $.03 for the three months ended December 31, 1995 compared to $.03 for the three months ended January 1, 1995. FINANCIAL CONDITION & LIQUIDITY Over the last year, the Company has taken important steps to improve its financial condition. On December 2, 1994, the Company completed the sale of its operations in Flippin, Arkansas to Avnet, Inc. In the transaction, Avnet purchased the net assets of the Flippin operation and the related business for $10,455,000 and assumed liabilities of $2,900,000. The proceeds of the sale were used to reduce debt. At December 31, 1995, the Company had borrowings as follows: a term loan with an initial balance of $3,500,000 payable over four years at an interest rate of prime plus 1.5% and a revolving credit facility of up to $14,500,000 which expires July 3, 1996, at prime plus 1.5% interest, both through Sanwa Business Credit. As of December 31, 1995, $430,000 was outstanding on the term loan and $6,600,000 was outstanding on the revolver. In addition, the Company now has $3,386,000 of 12% Subordinated Notes due May 15, 1998, $714,000 in notes due Chemical Bank at prime plus .5%, plus other debt totaling $338,000. Equity at December 31, 1995 was $13,816,000 or $.90 per common share. For the six months ended December 31, 1995, the Company used cash in its operations, primarily due to higher receivables and inventories. The investment in inventory is necessary to support higher planned volume in the third quarter of fiscal 1996. Further, the Company invested $540,000 in new equipment during the period . During the six months ended December 31, 1995, the Company increased borrowings by $850,000. -13- 14 PART II Not Applicable -14- 15 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. LABARGE, INC. ---------------------------- (Registrant) Date 2/8/96 -------------- William J. Maender ---------------------------- William J. Maender Vice President - Finance, Treasurer and Secretary -15- EX-27 2 FINANCIAL DATA SCHEDULE
5 1,000 6-MOS JUN-30-1996 DEC-31-1995 216 250 8,299 (138) 15,203 25,561 11,430 (8,577) 33,342 15,928 0 0 0 153 13,663 33,342 28,271 28,271 23,806 27,277 185 0 646 533 33 500 0 0 0 500 .03 .03
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