-----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, Bime3uNYORuoYQ4muecSQRbD5LwCMOuD/dJwwGCtjFTMZt9T2sfTUYAejK6vRrdh IhiW04EcB88ERty/UIBXaw== 0000914317-98-000517.txt : 19980817 0000914317-98-000517.hdr.sgml : 19980817 ACCESSION NUMBER: 0000914317-98-000517 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19980630 FILED AS OF DATE: 19980814 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: LCS INDUSTRIES INC CENTRAL INDEX KEY: 0000058151 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-DIRECT MAIL ADVERTISING SERVICES [7331] IRS NUMBER: 132648333 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-12329 FILM NUMBER: 98687555 BUSINESS ADDRESS: STREET 1: 120 BRIGHTON RD CITY: CLIFTON STATE: NJ ZIP: 07012 BUSINESS PHONE: 2017785588 MAIL ADDRESS: STREET 1: 120 BRIGHTON RD STREET 2: 120 BRIGHTON RD CITY: CLIFTON STATE: NJ ZIP: 07012-1694 FORMER COMPANY: FORMER CONFORMED NAME: LISTFAX COMPUTER SERVICES INC DATE OF NAME CHANGE: 19711013 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 THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1998 OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to _________________ Commission file number 0-12329 LCS INDUSTRIES, INC. ------------------------------------------------------ (Exact name of registrant as specified in its charter) Delaware 13-2648333 - ------------------------ ------------------------------------ (State of incorporation) (I.R.S. Employer Identification No.) 120 Brighton Road, Clifton, New Jersey 07012 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (973) 778-5588 -------------- N/A - -------------------------------------------------------------------------------- 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, and (2) has been subject to such filing requirements for the past 90 days. Yes ( X ) No ( ) APPLICABLE ONLY TO CORPORATE ISSUERS: The number of shares outstanding of the registrant's Common Stock, par value of $.01 per share, as of August 3, 1998, was 4,844,149. LCS INDUSTRIES, INC. AND SUBSIDIARIES INDEX PART I FINANCIAL INFORMATION Item 1. Financial Statements Consolidated Balance Sheets As of June 30, 1998 (Unaudited) and September 30, 1997 Consolidated Statements of Income For the Three Months and Nine Months Ended June 30, 1998 and 1997 (Unaudited) Consolidated Statements of Cash Flows For the Nine Months Ended June 30, 1998 and 1997 (Unaudited) Notes to Consolidated Financial Statements (Unaudited) Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations PART II OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K
LCS INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS June 30, September 30, 1998 1997 ------------ ------------ (Unaudited) ASSETS Current assets: Cash and cash equivalents ................................... $ 17,595,134 $ 14,619,271 Investments - held-to-maturity .............................. 14,029,589 14,410,101 Accounts receivable (less allowance for doubtful accounts: June 30 - $532,000 and September 30 - $496,000) ............................ 16,829,448 23,163,774 Prepaid expenses and other current assets ................... 2,011,816 1,460,990 Deferred taxes .............................................. 308,000 684,000 ------------ ------------ Total current assets ...................................... 50,773,987 54,338,136 ------------ ------------ Investments - available-for-sale, net .......................... 1,516 123,708 Property and equipment, net .................................... 6,440,457 7,093,790 Goodwill (net of accumulated amortization: June 30 - $1,020,967 and September 30 - $806,204) ............... 7,066,214 7,280,977 Other assets ................................................... 849,409 672,656 ------------ ------------ $ 65,131,583 $ 69,509,267 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable ............................................ $ 10,914,531 $ 14,798,326 Accrued salaries and commissions ............................ 2,300,729 3,127,141 Other accrued expenses ...................................... 3,005,732 3,899,876 Income taxes payable ........................................ 434,629 290,407 Current portion of long-term debt ........................... 1,037,916 1,087,511 Current portion of capital lease obligations ................ 7,557 211,580 Deferred revenue ............................................ -- 4,124,699 ------------ ------------ Total current liabilities ................................. 17,701,094 27,539,540 ------------ ------------ Long-term debt, net of current portion ......................... 2,673,036 3,444,533 Deferred taxes ................................................. 192,000 249,000 Deferred compensation .......................................... 299,000 --
LCS INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (continued) June 30, September 30, 1998 1997 ------------ ------------ (Unaudited) Stockholders' equity: Preferred stock $.01 par value; authorized 1,000,000 shares; issued - none Common stock $.01 par value; authorized 15,000,000 shares; issued June 30 - 5,058,174 shares and September 30 - 4,854,847 shares .............. 50,582 48,548 Common stock issuable ....................................... 1,071,532 1,490,431 Additional paid-in capital .................................. 9,595,817 8,702,971 Retained earnings ........................................... 34,254,027 28,245,206 ------------ ------------ 44,971,958 38,487,156 Less: Treasury stock, at cost, June 30 - 214,663 shares and September 30 - 187,766 shares ............... (705,505) (207,953) Available-for-sale securities valuation adjustment, net of deferred income taxes .................... -- (3,009) ------------ ------------ Total stockholders' equity ................................ 44,266,453 38,276,194 ------------ ------------ $ 65,131,583 $ 69,509,267 ============ ============
See Notes to Consolidated Financial Statements
LCS INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS For the Three and Nine Months Ended June 30, (Unaudited) Three Months Nine Months ------------------------------ ------------------------------ 1998 1997 1998 1997 Net sales ............................. $ 22,040,914 $ 24,167,753 $ 71,653,799 $ 75,238,106 Cost of sales ......................... 15,255,841 16,451,458 49,577,715 51,758,748 ------------ ------------ ------------ ------------ Gross profit .......................... 6,785,073 7,716,295 22,076,084 23,479,358 Selling and administrative expenses ... 4,106,571 4,410,592 12,282,338 13,349,253 Other (income) expense: Dividend and interest income ....... (406,533) (365,286) (1,212,783) (1,051,227) Interest expense ................... 78,212 116,820 257,605 350,859 Loss on investment ................. -- 954,000 (210,000) 954,000 ------------ ------------ ------------ ------------ Income before income taxes ............ 3,006,823 2,600,169 10,958,924 9,876,473 Provision for income taxes ............ 1,250,000 1,410,000 4,419,000 4,388,000 ------------ ------------ ------------ ------------ Net income ............................ $ 1,756,823 $ 1,190,169 $ 6,539,924 $ 5,488,473 ============ ============ ============ ============ Per common and common equivalent share: Basic earnings ........................ $ .36 $ .26 $ 1.36 $ 1.19 ============ ============ ============ ============ Diluted earnings ...................... $ .34 $ .23 $ 1.27 $ 1.07 ============ ============ ============ ============ Dividends ............................. $ .038 $ .038 $ .113 $ .10 ============ ============ ============ ============
See Notes to Consolidated Financial Statements.
LCS INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the Nine Months Ended June 30, (Unaudited) 1998 1997 ------------ ------------ Increase (Decrease) in cash and cash equivalents Cash flows from operating activities: Net income ........................................ $ 6,539,924 $ 5,488,473 ------------ ------------ Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization ................. 2,075,224 1,913,249 Deferred income taxes ......................... 317,000 99,000 Provision for doubtful accounts receivable .... 110,000 85,000 Deferred compensation ......................... 299,000 -- Gain on sale of available-for-sale securities . -- (474) ------------ ------------ Total adjustments ............................. 2,801,224 2,096,775 Changes in operating assets and liabilities: Accounts receivable ........................... 6,224,326 2,598,852 Prepaid expenses and other current assets ..... (1,143,890) (548,675) Accounts payable and accrued expenses ......... (5,552,352) (1,833,229) Income taxes payable .......................... 407,144 506,725 Deferred revenue .............................. (4,124,699) (2,472,917) Other assets .................................. (176,753) (102,366) ------------ ------------ Total adjustments and changes ................. (1,565,000) 245,165 ------------ ------------ Net cash provided by operating activities ......... 4,974,924 5,733,638 ------------ ------------ Cash flows from financing activities: Changes in note payable, long-term debt and capital leases (including current portion): Repayments .................................... (1,583,364) (1,196,582) Dividends paid .................................... (531,052) (455,635) Exercise of stock options ......................... 151,460 493,872 Employee Stock Purchase Plan and employment agreement proceeds ............................ 70,168 85,154 ------------ ------------ Net cash used in financing activities ............. (1,892,788) (1,073,191) ------------ ------------ Cash flows from investing activities: Additions to property and equipment ............... (1,207,128) (1,313,713) Net sales (purchases) of investments .............. 1,100,855 (3,083,100) ------------ ------------ Net cash used in investing activities ............. (106,273) (4,396,813) ------------ ------------
LCS INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the Nine Months Ended June 30, (Unaudited) 1998 1997 ------------ ------------ Cash and cash equivalents: Net increase in cash and cash equivalents ......... 2,975,863 263,634 Cash and cash equivalents at beginning of period .. 14,619,271 11,893,982 ------------ ------------ Cash and cash equivalents at end of period ........ $ 17,595,134 $ 12,157,616 ============ ============ For the Nine Months Ended June 30, ................... 1998 1997 ------------ ------------ Supplementary disclosures of cash flow information: Cash paid during the period for: Interest ...................................... $ 204,588 $ 233,830 Income taxes ................................. $ 3,518,950 $ 3,937,260
Supplemental disclosures of non-cash investing and financing activities: Valuation adjustment: In fiscal 1998, the valuation adjustment account is no longer required as a result of selling the available-for-sale securities portfolio to which the valuation adjustment related. For the nine months ended June 30, 1997, the account was adjusted to reflect an increase in market values of the available-for-sale securities portfolio of $31,216, net of deferred income taxes. Stock dividends: On October 7, 1997, 144 shares of the Company's common stock were paid as dividends upon exchange of 33 shares of the Company's "old" common stock. Treasury stock: For the nine months ended June 30, 1998, 26,897 shares of the Company's outstanding Common Stock were received in exchange for options exercised covering 176,000 shares of Common Stock. Long-term debt and acquisition of business: As a result of Amendment No. 2 of the Catalog Resources, Inc. purchase agreement, (as explained in Note 3 to the Consolidated Financial Statements), additional long-term debt of $506,250 was recorded, offset by charges to common stock issuable of $418,899 and additional paid-in capital of $87,351 during fiscal 1998. During the nine month period ended June 30, 1997, $455,552 of common stock issuable was converted into 38,762 issued shares of the Company's common stock, in accordance with the terms of the Catalog Resources, Inc. purchase agreement, as amended. See Notes to Consolidated Financial Statements. LCS INDUSTRIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1) In the opinion of management, the accompanying unaudited financial statements include all adjustments (consisting only of normal recurring accruals) which are necessary for a fair presentation of results for the periods indicated. Certain information and footnote disclosures normally included in complete financial statements prepared in accordance with generally accepted accounting principles have been omitted. Therefore, these financial statements should be read in conjunction with the financial statements and the footnotes included in the Company's Annual Report on Form 10-K (as amended by Form 10-K/A-1) for the year ended September 30, 1997. The results of operations for the nine months ended June 30, 1998 are not necessarily indicative of the results for the full year. The September 30, 1997 Balance Sheet was derived from the audited Balance Sheet at that date. 2) Effective October 1, 1997, the Company adopted the provisions of Statement of Financial Accounting Standards ("SFAS") No. 128, "Earnings per Share", issued in March, 1997. The Statement requires dual presentation of basic and diluted earnings per share by entities with complex capital structures. Basic earnings per share includes no dilution and is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution of securities that could share in the earnings of the Company. The prior year's earnings per share amounts have been restated to reflect the provisions of SFAS No. 128. 3) On December 30, 1997, the Company and former shareholders of Catalog Resources, Inc. agreed to Amendment No. 2 of the purchase agreement dated April 1, 1993 and amended August 1, 1994. This Amendment provides for the payment made January 2, 1998 of $1,012,500 to be 100% in cash compared to the previously agreed 50% in cash and 50% in Common Stock of the Company, subject to a maximum number of shares to be issued of 660,000. Accordingly, the current portion of long-time debt at December 31, 1997 was increased by $506,250 (50% of the $1,012,500 payment). This was offset by a reduction in common stock issuable of $418,899, representing the present value at September 30, 1995 of the originally anticipated stock issuance, and a charge to additional paid-in capital of $87,351. As a result of Amendment No. 2, the parties have agreed to reduce the maximum number of shares issuable under the amended agreement by the shares which would have been issued on January 2, 1998 based on the provisions of the original agreement. The revised maximum number of shares issuable is 628,020 of which 538,287 shares have been previously issued. 4) On January 6, 1998, the Company announced it had entered into an additional one-year agreement to provide computer services for a major non-U.S. telecommunications company. Total revenue of $6 million is expected and the assignment began July 1, 1998 immediately following the conclusion of the initial three-year project. 5) Other income for the nine months ended June 30, 1998 represents a payment from McIntyre and King, Ltd. ("M&K") representing final settlement of a portion of the down-payment made in connection with the 1997 rescinded purchase agreement. During fiscal 1997, the Company had written off its entire investment in M&K since any recovery, at that time, was uncertain. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. Results of Operations Three Months ended June 30, 1998 Sales declined 9% in the quarter ended June 30, 1998 to $22,041,000 from $24,168,000 for the comparable quarter of the prior year and is accounted for by decreases of 15% in computer services, 13% in list marketing services and 2% in fulfillment services. The lower computer services revenues continue to reflect reduced billings, compared to the prior year, for the last phase of the three-year $40 million contract to build and manage a marketing database for a major non-U.S. telecommunications company. This contract was completed June 30, 1998. On July 1, 1998, the Company began work under an additional $6.0 million one-year contract with the same telecommunications company. The list marketing decline reflects customer attrition and industry softness not fully offset by new customers. The fulfillment decrease is comprised of a 6% increase in continuity services offset by a 10% decline in the catalog fulfillment operation. The continuity services increase resulted primarily from higher activity levels from existing clients. The decline in the catalog fulfillment operation resulted from several customers being acquired by third parties, as previously reported. Recently, contracts with several new customers have been finalized. Gross profit decreased 12% to $6,785,000 for the current quarter from $7,716,000 in the comparable quarter of 1997. Gross profit margin was 31% in the current quarter compared to 32% in the comparable prior period. The decline in gross profit amount resulted primarily from the decreased sales volumes. Selling and administrative expenses decreased 7% to $4,107,000 in the current quarter from $4,411,000 in the comparable quarter of 1997. Selling and administrative expenses, as a percentage of sales, were 19% for the current quarter and 18% in 1997. The decrease in the amount of selling and administrative expenses is primarily the result of continued lower executive compensation and travel expenses. This decrease, however, was not proportional to the decline in revenues and, as a result, the percentage of these expenses to revenues increased. Net dividend and interest of $328,000 was realized in the current quarter compared to $248,000 in the comparable 1997 quarter. Dividend and interest income increased $41,000 in the current fiscal quarter as a result of a higher level of funds available for short-term investment and higher interest rates during the current quarter. The decrease in interest expense quarter over quarter of $39,000 resulted primarily from reduced debt and capital lease obligations. The unsecured line of credit held available to the Company was not utilized in either quarter. In the quarter ended June 30, 1997, a loss on investment of $954,000 ($901,000 net of taxes) was recorded which represented a non-recurring charge for the write-off of the Company's investment in McIntyre & King, Ltd. ("M&K"). This charge represented $.18 per share in the quarter. The Company's Board of Directors decided to sever the relationship with M&K due to unexpected operating losses that would have required unacceptable demands on management's time and the financial support required to attempt to return M&K to profitability. As a result, effective April 5, 1997, the Company agreed to rescind its acquisition of M&K. The rescission agreement, dated June 30, 1997, provided for the return of a portion of the down payment in one year. However, recovery was uncertain and, therefore, the Company expensed all payments, advances and all related costs. During the first quarter of the current fiscal year, a payment of $210,000 was received and recorded as other income in settlement of a portion of the down payment under the rescinded agreement. The effective tax rate in the current fiscal quarter was 40 per cent compared to 54 per cent in the comparable period of the prior fiscal year. In 1997, the Company did not anticipate realizing sufficient capital gains during the tax carryforward period to offset capital losses related to M&K, therefore, no tax benefit was recorded. Net income was $1,757,000 ($.34 per share diluted) in the current quarter compared to $1,190,000 ($.23 per share diluted) in the comparable 1997 quarter. Nine Months ended June 30, 1998 Sales decreased 5% for the nine months ended June 30, 1998 to $71,654,000 from $75,238,000 for the comparable period of the prior year and is represented by decreases of 17% in computer services and 5% in list marketing services partially offset by a 1% increase in fulfillment. The lower computer services revenues continue to reflect reduced billings, compared to the prior year, for the last phase of the three-year $40 million contract to build and manage a marketing database for a major non-U.S. telecommunications company. This contract was completed June 30, 1998. On July 1, 1998, the Company bean work under an additional $6.0 million one-year contract with the same telecommunications company. The list marketing decline reflects customer attrition and industry softness not fully offset by new customers. The fulfillment decrease is comprised of a 15% increase in continuity services offset by a 74% decrease in telemarketing services and an 11% decline in the catalog fulfillment operation. The continuity services increase resulted primarily from higher activity levels from existing clients. The decrease in telemarketing services is in line with the Company's program to de-emphasize this activity. The decline in the catalog fulfillment operation resulted from several customers being acquired by third parties, as previously reported. Recently, contracts with several new customers have been finalized. Gross profit decreased 6% to $22,076,000 for the nine month period from $23,479,000 in the comparable period of 1997. Gross profit margin was 31% in each period. The decrease in gross profit amount resulted primarily from the decreased sales volumes. Selling and administrative expenses decreased 8% to $12,282,000 from $13,349,000. Selling and administrative expenses, as a percentage of sales, were 17% in the current nine month period compared to 18% in the comparable prior year period. The decrease in the amount and percentage of selling and administrative expenses is primarily the result of lower executive compensation, travel and communications expenses. Net dividend and interest of $955,000 was realized in the current period compared to $700,000 in 1997. Dividend and interest income increased $162,000 in the current nine month period as a result of a higher level of funds available for short-term investment coupled with higher interest rates. The decrease in interest expense period over period of $93,000 resulted primarily from reduced debt and capital lease obligations. The unsecured line of credit held available to the Company was not utilized in either period. During the nine month period, a payment of $210,000 was received from McIntyre & King, Ltd. ("M&K") and recorded as other income. This payment represented final settlement of a portion of the down-payment made in connection with the 1997 rescinded purchase agreement, as previously described. During fiscal 1997, the Company had written off its entire investment in M&K since any recovery, at that time, was uncertain. The effective tax rate for the nine month period in fiscal 1998 was 40 percent compared to 44 per cent in 1997. In 1997, the Company did not anticipate realizing sufficient capital gains during the tax carryforward period to offset capital losses related to M&K, therefore, no tax benefit was recorded. Net income was $6,540,000 ($1.27 per share diluted) in the current period compared to $5,488,000 ($1.07 per share diluted) in the comparable 1997 period. Financial Condition, Liquidity and Capital Resources Working capital was $33,073,000 at June 30, 1998. The working capital increase resulted from a decrease in current assets of $3,564,000 while current liabilities decreased by $9,838,000. The decrease in current assets was primarily the result of lower accounts receivable-net ($6,334,000), investments-held-to-maturity ($381,000) and deferred taxes ($376,000) offset by an increase in cash and cash equivalents ($2,976,000) and prepaid expenses and other current assets ($551,000). The decrease in current liabilities resulted primarily from lower deferred revenue ($4,125,000), accounts payable ($3,884,000), other accrued expenses ($894,000) and accrued salaries and commissions ($826,000). For the nine month period, cash generated by operations decreased $759,000 over such amounts generated in the comparable period of the prior year. This decrease was the result of decreases in adjustments to net income and changes in operating assets and liabilities ($1,810,000) offset by an increase in net income ($1,051,000). The decrease in adjustments to net income and changes in operating assets and liabilities resulted primarily from decreases in accounts payable and accrued expenses ($3,719,000) and deferred revenue ($1,652,000) partially offset by a decrease in accounts receivable ($3,625,000). For the nine month period ended June 30, 1998, funds used by financing activities increased $820,000 compared to the comparable period of the prior year. The increased usage resulted primarily from increased repayment of debt ($387,000), reduced receipts from the exercise of stock options ($342,000) and increased payment of dividends ($75,000). For the same period, cash used by investing activities decreased $4,291,000 as a result of net investment sales ($4,184,000) and reduced additions to property and equipment ($107,000). Pursuant to the purchase agreement, as amended, with CRI, the Company is obligated to pay to CRI's selling shareholders, in cash or stock, up to an aggregate of $10,000,000. Under such purchase agreement, the Company paid $1,012,500 (one-half in cash and one-half in stock) on January 1, 1997. Further, such amounts will be payable each January 1 through 2002 totaling a maximum of $5,062,500. The discounted value of these future payments was recorded at September 30, 1995 since it is probable that the future earnings levels will be attained which will require the maximum payments to be made. Management believes cash generated from current operations and other liquid assets combined with the available bank credit line and the five year term loan mentioned above will be sufficient to meet cash flow needs during the fiscal year. Year 2000 Issues Certain of the Company's operational computer programs use two digits to identify a year in the date field which does not consider the impact, if any, of the upcoming change in the century. The Company anticipates, at a cost not material to financial results, the timely completion of any programming needed to address this issue and result in successful computer processing in the year 2000 and beyond. The Company has not, however, fully completed its review of the Year 2000 issues, particularly, but not limited to, non-operational computer programs and third party vendor and customer issues. The Company is in the process of completing that review. Management cannot provide assurance that the result of its Year 2000 compliance efforts or the cost of such efforts will not differ materially from estimates. Accordingly, business continuity and contingency plans are currently being developed to address high risk areas as they are identified. The above discussion contains statements that are "forward-looking" within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes that its estimates are based on reasonable assumptions, there can be no assurance that actual results will not differ materially from these estimates. PART II OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K. (a) Exhibit 11 - Computation of earnings per share. (b) Reports on Form 8-K - LCS Industries, Inc. did not file any reports on Form 8-K during the quarter ended June 30, 1998. SIGNATURES 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: Clifton, New Jersey August 10, 1998 LCS INDUSTRIES, INC. (Registrant) By: /s/ William Rella ----------------- William Rella President and Chief Executive Officer By: /s/ Pat R. Frustaci ------------------- Pat R. Frustaci Vice President-Finance (Chief Financial Officer) LCS INDUSTRIES, INC. Commission File No. 0-12329 ------ Quarterly Report on Form 10-Q for the Nine Months Ended June 30, 1998 EXHIBIT INDEX TO EXHIBIT Exhibit No. Description --- ----------- 11 Statement re: Computation of Per Share Earnings EX-11 2
EXHIBIT 11 LCS INDUSTRIES, INC. AND SUBSIDIARIES COMPUTATION OF EARNINGS PER SHARE AND COMMON EQUIVALENT SHARE For the Three and Nine Months Ended June 30, (Unaudited) Three Months Nine Months -------------------------- ------------------------- 1998 1997 1998 1997 ---------- ---------- ---------- ---------- Basic earnings per share: Weighted average shares outstanding ..... 4,834,721 4,654,374 4,794,477 4,612,317 ========== ========== ========== ========== Net income .............................. $1,756,823 $1,190,169 $6,539,924 $5,488,473 Basic earnings per share ................ $ .36 $ .26 $ 1.36 $ 1.19 ========== ========== ========== ========== Diluted earnings per share: Weighted average shares outstanding ..... 4,834,721 4,654,374 4,794,477 4,612,317 Weighted average - dilutive stock options 211,216 359,968 280,353 372,048 Shares issuable in connection with the acquisition of Catalog Resources, Inc. 89,733 121,713 89,733 121,713 ---------- ---------- ---------- ---------- 5,135,670 5,136,055 5,164,563 5,106,078 ========== ========== ========== ========== Net income .............................. $1,756,823 $1,190,169 $6,539,924 $5,488,473 Diluted earnings per share and common equivalent share ..................... $ .34 $ .23 $ 1.27 $ 1.07 ========== ========== ========== ==========
EX-27 3
5 9-MOS SEP-30-1998 JUN-30-1998 17,595,134 14,029,589 17,361,448 532,000 186,780 50,773,987 20,139,329 13,698,872 65,131,583 17,701,094 0 0 0 50,582 44,215,871 65,131,583 0 71,653,799 0 49,577,715 12,282,338 110,000 257,605 10,958,924 4,419,000 6,539,924 0 0 0 6,539,924 1.36 1.27
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