-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, i2CCkf9RGQvZydIVdOTeAW/qSm03zP7M7xuM4GQ1BTs/JqRpvBaRhn+QAQ5S3SYE gu7ZaPHZh6vH0RhgSIWhMQ== 0000898430-95-000865.txt : 19950516 0000898430-95-000865.hdr.sgml : 19950516 ACCESSION NUMBER: 0000898430-95-000865 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950515 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: SYNBIOTICS CORP CENTRAL INDEX KEY: 0000719483 STANDARD INDUSTRIAL CLASSIFICATION: IN VITRO & IN VIVO DIAGNOSTIC SUBSTANCES [2835] IRS NUMBER: 953737816 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-11303 FILM NUMBER: 95539213 BUSINESS ADDRESS: STREET 1: 11011 VIA FRONTERA CITY: SAN DIEGO STATE: CA ZIP: 92127 BUSINESS PHONE: 6194513771 10QSB 1 FORM 10QSB ================================================================================ U.S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ----------- FORM 10-QSB [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1995 OR [_] TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 COMMISSION FILE NUMBER 0-11303 SYNBIOTICS CORPORATION (Exact name of small business issuer as specified in its charter) CALIFORNIA 95-3737816 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 11011 VIA FRONTERA SAN DIEGO, CALIFORNIA 92127 (Address of principal executive offices) (Zip Code) ISSUER'S TELEPHONE NUMBER, INCLUDING AREA CODE: (619) 451-3771 Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 [_] As of April 28, 1995, 5,803,376 shares of Common Stock were outstanding. Transitional Small Business Disclosure Format: Yes [_] No [X] ================================================================================ 1 SYNBIOTICS CORPORATION INDEX
PAGE - --------------------------------------------------------------------------------- PART I. Condensed Statement of Operations - Three months ended March 31, 1995 and 1994 3 Condensed Balance Sheet - March 31, 1995 and December 31, 1994 4 Condensed Statement of Cash Flows - Three months ended March 31, 1995 and 1994 5 Notes to Condensed Financial Statements 6 Management's Discussion and Analysis or Plan of Operation 7 PART II. Other Information 7
2 ITEM 1. FINANCIAL STATEMENTS SYNBIOTICS CORPORATION CONDENSED STATEMENT OF OPERATIONS (UNAUDITED) - -------------------------------------------------------------------------------
Three Months Ended March 31, ------------------------ 1995 1994 ---------- ---------- Revenues: Product sales $4,826,000 $5,486,000 License fees and other 50,000 65,000 Interest 9,000 15,000 ---------- ---------- 4,885,000 5,566,000 ---------- ---------- Cost and expenses: Cost of sales 2,183,000 2,684,000 Research and development 201,000 249,000 Selling and marketing 1,378,000 1,430,000 General and administrative 351,000 784,000 ---------- ---------- 4,113,000 5,147,000 ---------- ---------- Income before income taxes 772,000 419,000 Provision for income taxes 18,000 ---------- ---------- Net income $ 754,000 $ 419,000 ========== ========== Net income per share $.13 $.07 ========== ========== Weighted average shares outstanding 5,803,000 5,906,000 ========== ==========
Net (loss) income per share was computed based upon the weighted average number of shares outstanding, including common stock equivalents. See accompanying notes to condensed financial statements. 3 ITEM 1. FINANCIAL STATEMENTS (CONTINUED) SYNBIOTICS CORPORATION CONDENSED BALANCE SHEET - --------------------------------------------------------------------------------
March 31, December 31, 1995 1994 ----------- ----------- (unaudited) (audited) ASSETS Current assets: Cash and equivalents $1,151,000 $ 447,000 Securities available for sale 507,000 502,000 Accounts receivable 2,023,000 1,444,000 Inventories 2,870,000 2,763,000 Other current assets 854,000 963,000 ----------- ----------- Total current assets 7,405,000 6,119,000 Property and equipment, net 1,233,000 1,329,000 Securities available for sale 860,000 942,000 Other assets 1,870,000 1,921,000 ----------- ----------- $11,368,000 $10,311,000 =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses $ 2,041,000 $1,662,000 Other current liabilities 701,000 695,000 ----------- ----------- Total current liabilities 2,742,000 2,357,000 ----------- ----------- Shareholders' equity: Common stock, no par value, 24,800,000 shares authorized, 5,803,000 shares issued and outstanding at March 31, 1995 and December 31, 1994 29,318,000 29,318,000 Unrealized holding losses from securities available for sale (1,777,000) (1,695,000) Accumulated deficit (18,915,000) (19,669,000) ----------- ----------- Total shareholders' equity 8,626,000 7,954,000 ----------- ----------- $11,368,000 $10,311,000 =========== ===========
See accompanying notes to condensed financial statements. 4 ITEM 1. FINANCIAL STATEMENTS (CONTINUED) SYNBIOTICS CORPORATION CONDENSED STATEMENT OF CASH FLOWS (UNAUDITED) - --------------------------------------------------------------------------------
Three Months Ended March 31, --------------------------- March 31, December 31, 1995 1994 ----------- ----------- (unaudited) (audited) Cash flows from operating activities: Net income $ 754,000 $ 419,000 Adjustments to reconcile net income to net cash used for operating activities: Depreciation and amortization 251,000 201,000 Changes in assets and liabilities: Accounts receivable (579,000) (1,759,000) Receivable from affiliates 22,000 Inventories (107,000) 643,000 Other assets 65,000 (88,000) Accounts payable and accrued expenses 379,000 671,000 Other liabilities 6,000 3,000 ----------- ----------- Net cash provided by operating activities 769,000 112,000 ----------- ----------- Cash flows from investing activities: Acquisition of property and equipment (60,000) (105,000) Investment in securities available for sale (5,000) Loans to affiliates (300,000) ----------- ----------- Net cash used for investing activities (65,000) (405,000) ----------- ----------- Net increase (decrease) in cash and equivalents 704,000 (293,000) Cash and equivalents - beginning of year 447,000 3,928,000 ----------- ----------- Cash and equivalents - end of period $1,151,000 $3,635,000 =========== ===========
See accompanying notes to condensed financial statements. 5 ITEM 1. FINANCIAL STATEMENTS (CONTINUED) SYNBIOTICS CORPORATION NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED) - -------------------------------------------------------------------------------- NOTE 1 - INTERIM FINANCIAL STATEMENTS: The accompanying balance sheet as of March 31, 1995 and the statements of operations and of cash flows for the three month periods ended March 31, 1995 and 1994 have been prepared by Synbiotics Corporation (the Company) and have not been audited. These financial statements, in the opinion of management, include all adjustments (consisting only of normal recurring accruals) necessary for a fair presentation of the financial position, results of operations and cash flows for all periods presented. The financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-KSB filed for the year ended December 31, 1994. Interim operating results are not necessarily indicative of operating results for the full year. NOTE 2 - SECURITIES AVAILABLE FOR SALE: Included in current assets are securities available for sale which consist of U.S. Government Treasury bills. NOTE 3 - INVENTORIES: Inventories consist of the following:
March 31, December 31, 1995 1994 ---------- ------------ Raw materials $ 624,000 $ 576,000 Work in process 767,000 756,000 Finished goods 1,479,000 1,431,000 ---------- ---------- $2,870,000 $2,763,000 ========== ==========
6 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION --------------------------------------------------------- RESULTS OF OPERATIONS Total revenue for the first quarter of 1995 decreased by $681,000 or 12% from the first quarter of 1994. Product sales during the first quarter of 1995 decreased $660,000 or 12%. The decrease is due to a $1,127,000 or 46% decrease in vaccine sales, offset by an increase of $467,000 or 15% in diagnostic sales. Vaccine sales decreased primarily due to decreased international shipments of bulk feline leukemia vaccine to Rhone-Merieux, which bottles and markets the Company's feline leukemia vaccine under its own brand name in certain parts of Europe, and the fact that vaccine sales during the first quarter of 1994 were unusually large as a result of initial "load-in" distributor purchases as part of the Company's new vaccine product line launch. The increased diagnostic sales are primarily due to the introduction of ICT GOLD/TM/ HW, the Company's new canine heartworm diagnostic, in March 1995. The cost of sales as a percentage of product revenue decreased to 45% during the first quarter of 1995 as compared to 49% for the first quarter of 1994. The decrease is due to the increased sales of diagnostic products, which generally have higher profit margins, and the decrease in sales of vaccine products, which generally have lower profit margins. Research and development expenses during the first quarter of 1995 decreased by $48,000 or 19% from the first quarter of 1994. The decrease is due to completion of the development of the Company's ICT GOLD/TM/ HW canine heartworm diagnostic test which was introduced in March 1995. General and administrative expenses during the first quarter of 1995 decreased by $433,000 or 55% from the first quarter of 1994. The decrease is due to a decrease in legal expenses as a result of the settlement of major litigation in December 1994. The Company's business is seasonal, and is concentrated within the canine heartworm selling season, which falls mainly in the quarters ending March 31 and June 30 of each year. Sales and profits from operations in the quarters ending September 30 and December 31 of each year are expected to be less favorable than in the heartworm selling season. FINANCIAL CONDITION Management believes that the Company's present capital resources, which included working capital of $4,663,000 at March 31, 1995, are sufficient to meet its current working capital needs. PART II. OTHER INFORMATION --------------------------- ITEM 1. LEGAL PROCEEDINGS: ------------------ None. ITEM 2. CHANGES IN SECURITIES: ---------------------- None. 7 ITEM 3. DEFAULTS UPON SENIOR SECURITIES: -------------------------------- None. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS: ---------------------------------------------------- None. ITEM 5. OTHER INFORMATION: ------------------ None. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K: --------------------------------- (a) Exhibits -------- 11.1 Computation of Loss Per Share. 27 Financial Data Schedule (for electronic filing purposes only). (b) Reports on Form 8-K ------------------- None. SIGNATURES In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereto duly authorized. SYNBIOTICS CORPORATION Date: May 15, 1995 /s/ Michael K. Green ----------------------- Michael K. Green Vice President of Finance and Chief Financial Officer (signing both as a duly authorized officer and as principal financial officer) 8 EX-11 2 COMPUTATION OF EARNINGS SYNBIOTICS CORPORATION EXHIBIT 11.1 ------------ COMPUTATION OF EARNINGS PER SHARE - --------------------------------------------------------------------------------
Three Months Ended March 31, --------------------------- 1995 1994 ----------- ---------- PRIMARY EARNINGS PER SHARE: Net income per statement of operations $ 754,000 $ 419,000 =========== ========== Weighted average number of shares outstanding 5,803,000 5,906,000 =========== ========== Primary earnings per share $ .13 $ .07 =========== ========== FULLY DILUTED EARNINGS PER SHARE: Net income per statement of operations $ 754,000 $ 419,000 =========== ========== Reconciliation of weighted average number of shares per primary computation above, to amount used for fully diluted computation: Weighted average number of shares outstanding, per primary computation 5,803,000 5,906,000 Add-effect of outstanding options (as determined by the application of the treasury method) 3,000 6,000 ----------- ---------- Weighted average number of shares, as adjusted 5,806,000 5,912,000 =========== ========== Fully diluted earnings per share $ .13 $ .07 =========== ==========
9 EX-27 3 ARTICLE 5 FDS
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONDENSED BALANCE SHEET AS OF MARCH 31, 1995 AND THE RELATED CONDENSED STATEMENTS OF OPERATIONS AND OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 1995 INCLUDED ELSEWHERE IN THIS FORM 10-QSB AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS DEC-31-1995 JAN-01-1995 MAR-31-1995 1,151 507 2,102 79 2,870 7,405 4,383 3,150 11,368 2,742 0 29,318 0 0 (20,692) 11,368 4,826 4,885 2,183 4,113 0 0 0 772 18 754 0 0 0 754 0.13 0.13
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