-----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, Rs8banrVlJTYLpYOw1ZjJdX+vrkUWxzFgTOgR9IkrE1xsUJ4gren0Drz4Ufx/9DH Vmk4WvtV2uzt+/gT7SivlQ== 0001047469-98-028035.txt : 19980723 0001047469-98-028035.hdr.sgml : 19980723 ACCESSION NUMBER: 0001047469-98-028035 CONFORMED SUBMISSION TYPE: 10-K/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980722 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: GRADCO SYSTEMS INC CENTRAL INDEX KEY: 0000719597 STANDARD INDUSTRIAL CLASSIFICATION: OFFICE MACHINES, NEC [3579] IRS NUMBER: 953342977 STATE OF INCORPORATION: CA FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-K/A SEC ACT: SEC FILE NUMBER: 000-12829 FILM NUMBER: 98669813 BUSINESS ADDRESS: STREET 1: 3753 HOWARD HUGHES PARKWAY SUITE 200 CITY: LAS VEGAS STATE: NV ZIP: 89109 BUSINESS PHONE: 7028923714 MAIL ADDRESS: STREET 1: 3753 HOWARD HUGHES PKWY CITY: LAS VEGAS STATE: NV ZIP: 89109 10-K/A 1 10-K/A SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K/A X ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE --- SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED] For the fiscal year ended March 31, 1998 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE --- SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] For the transition period from to ---------- ---------- Commission file number 0-12829 ------- GRADCO SYSTEMS, INC. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Nevada 95-3342977 - -------------------------------------------------------------------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 3753 Howard Hughes Pkwy, Ste 200, Las Vegas, Nevada 89109 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (702) 892-3714 -------------- Securities registered pursuant to Section 12(b) of the Act: Name of each exchange Title of each class on which registered ------------------- ------------------- None None - ------------------------------------- ------------------------------------- Securities registered pursuant to Section 12(g) of the Act: Common Stock, No par value - -------------------------------------------------------------------------------- (Title of Class ) 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 by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ------ The aggregate market value of voting stock held by non-affiliates of the Registrant (based on the closing sales price of Gradco common stock on the NASDAQ National Market System on June 19, 1998) was $54,000,361. The number of outstanding shares of each class of the Registrant's common stock outstanding at June 19, 1998 was: common stock, no par value--7,854,598 shares. Item 6. SELECTED FINANCIAL DATA. The following selected financial data should be read in conjunction with the consolidated financial statements of Gradco and the notes thereto included elsewhere herein.
YEARS ENDED MARCH 31, --------------------------------------------------- 1998 1997 1996 1995 1994 ---- ---- ---- ---- ---- (In thousands, except per share amounts) Statement of income data: Operating revenues: $120,999 $100,887 $100,596 $82,838 $53,148 -------- -------- -------- ------- ------- Costs and expenses: Cost of sales....................................... 95,019 79,271 77,497 64,919 41,163 Other operating expenses............................ 14,274 14,770 15,785 14,186 11,677 Interest income, net................................ (160) (183) (226) (55) (32) Investment (gains) losses........................... -- -- (53) 205 52 -------- -------- -------- ------- ------- 109,133 93,858 93,003 79,255 52,860 -------- -------- -------- ------- ------- Earnings before income taxes and minority interest................................... 11,866 7,029 7,593 3,583 288 Income taxes............................................ 4,378 2,983 2,748 1,331 535 Minority interest....................................... 1,102 1,194 1,585 800 (241) -------- -------- -------- ------- ------- Net earnings (loss)..................................... $ 6,386 $ 2,852 $ 3,260 $ 1,452 $ (6) -------- -------- -------- ------- ------- -------- -------- -------- ------- ------- Basic earnings per common share......................... $ .82 $ .36 $ .42 $ .19 $ -- -------- -------- -------- ------- ------- -------- -------- -------- ------- ------- Average shares outstanding, basic EPS................... 7,809 7,799 7,796 7,784 7,784 Diluted earnings per common share....................... $ .79 $ .36 $ .42 $ .19 $ -- -------- -------- -------- ------- ------- -------- -------- -------- ------- ------- Average shares outstanding, diluted EPS................. 8,051 7,832 7,813 7,798 7,784 -------- -------- -------- ------- ------- -------- -------- -------- ------- ------- Balance sheet data: Working capital..................................... $ 17,240 $ 19,418 $ 18,979 $16,727 $10,208 Total assets........................................ 48,471 58,086 58,015 64,383 41,796 Long-term debt...................................... 2 15 25 35 -- Shareholders' equity................................ 21,473 15,339 16,201 16,997 11,137
13 PART IV Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K. (a) See index to financial statements and financial statement schedules. See list of exhibits in paragraph (c) below. (b) 8-K Reports - None. (c) Exhibits: 2 Agreement and Plan of Merger dated July 25, 1991 regarding reincorporation of Gradco in Nevada, incorporated by reference from definitive Proxy Statement dated September 18, 1991, Exhibit C. 3.1 Articles of Incorporation of Gradco as reincorporated in Nevada, incorporated by reference from definitive Proxy Statement dated September 18, 1991, Exhibit D. 3.2 By-laws of Gradco as reincorporated in Nevada, incorporated by reference from Form 10-K for the fiscal year ended March 31, 1992, Exhibit 3.2. 10.1 Agreement between Gradco and Minolta Camera Co., Ltd. dated March 19, 1984, incorporated by reference from Form 10-K for the fiscal year ended April 7, 1984, Exhibit 10.16. 10.2 Amended and Restated License Agreement between Gradco (Japan) Ltd. and Minolta Camera Co., Ltd. dated July 1, 1991 (Japanese original and English Translation), incorporated by reference from Form 10-K for the fiscal year ended March 31, 1992, Exhibit 10.2. 10.3 General Agreement between Gradco and Ricoh Company, Ltd. dated July 1, 1984, incorporated by reference from Form 10-K for the fiscal year ended March 31, 1985, Exhibit 10.19. 10.4 Amended and Restated License Agreement between Gradco (Japan) Ltd. and Ricoh Company, Ltd. dated April 1, 1991 (Japanese original and English Translation), incorporated by reference from Form 10-K for the fiscal year ended March 31, 1992, Exhibit 10.4. 10.5 Agreement between Gradco Systems, Inc., and Canon, Inc., dated as of July 1, 1988, incorporated by reference from Form 8-K for July 1, 1988, Exhibit 10.62. 30 10.6 Agreement between Gradco/Dendoki Inc. and Canon Inc. dated February 25, 1983, incorporated by reference from Form 10-K for the fiscal year ended March 31, 1986, Exhibit 19.0. 10.7 Agreement between Gradco/Dendoki Inc. and Canon Inc. dated February 25, 1983, incorporated by reference from Form 10-K for the fiscal year ended March 31, 1986, Exhibit 19.3. 10.8 Agreement among Gradco, Gradco (Japan) Ltd. and Canon, Inc. dated April 1, 1991, incorporated by reference from Form 10-K for the fiscal year ended March 31, 1992, Exhibit 10.12. 10.9 Gradco 1988 Stock Option Plan, incorporated by reference from Form 8-K for July 1, 1988, Exhibit 19.3, and amendment thereto dated July 24, 1991, incorporated by reference from Form 10-Q for quarter ended June 30, 1991, Exhibit 19.2. 10.10 Gradco 1997 Stock Option Plan, incorporated by reference from its Registration Statement on Form S-8 filed February 3, 1998, Exhibit 4. 10.11 Amended Umbrella Agreement dated as of December 5, 1990 among Gradco, Gradco (Japan) Ltd. and Gradco (USA) Inc., incorporated by reference from Form 8-K for December 5, 1990, Exhibit 28. 10.12 Agreement between Gradco and Gradco (Japan) Ltd. dated March 1, 1991, incorporated by reference from Form 8-K for March 1, 1991, Exhibit 28. 10.13 Letter Agreement dated March 29, 1991 between Gradco Systems, Inc. and Gradco (Japan) Ltd., incorporated by reference from Form 10-K for the fiscal year ended March 31, 1991, Exhibit 10.31. 10.14 Lease Agreement between Venture Engineering, Inc. and Aetna Life Insurance Company, Inc. (formerly Trammell Crow Company) dated October 1, 1988 and subsequent amendments dated July 1, 1989, August 1, 1989, February 1, 1990 and March 1, 1991, incorporated herein by reference from Form 10-K for fiscal year ended March 31, 1991, Exhibit 19.3. 10.15 Basic Agreement between Gradco (Japan) Ltd. and Ikegami Tsushinki Co. Ltd. dated as of January 1, 1996 (English Translation of Japanese original), incorporated by 31 reference from Form 10-K for fiscal year ended March 31, 1996, Exhibit 10.16. 10.16 Agreement between Gradco (Japan) Ltd. and Lexmark International, Inc. dated September 1, 1992, incorporated by reference from Form 10-K for the fiscal year ended March 31, 1993, Exhibit 10.22. 10.17 Regulations of Retirement Allowance for Board of Directors and Auditors of Gradco Japan, adopted June 3, 1994 (English translation of Japanese original), incorporated by reference from Form 10-K for the fiscal year ended March 31, 1995, Exhibit 10.22. 10.18 Agreement among Gradco (Japan) Ltd., Gradco (USA) Inc., and Xerox Canada Ltd. dated as of August 17, 1995, incorporated by reference from Form 10-K for fiscal year ended March 31, 1996, Exhibit 10.19. 21 List of Significant Subsidiaries (i) Gradco (Japan) Ltd. (Japan) (ii) Venture Engineering, Inc. (Texas) (iii) Gradco (USA) Inc. (California) 23 Consent of Price Waterhouse LLP, previously filed 27 Financial Data Schedule, previously filed 32 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) 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. Dated: July 21, 1998 GRADCO SYSTEMS, INC. By: /s/ Martin E. Tash ----------------------------------------- Martin E. Tash Chairman of the Board, President and Chief Executive Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. SIGNATURE TITLE DATE --------- ----- ---- Chairman of the Board, President and Chief /s/ Martin E. Tash Executive Officer (Principal - ----------------------- Executive Officer) July 21, 1998 Martin E. Tash Executive Vice President, Chief Financial Officer (Principal Financial /s/ Harland L. Mischler and Accounting Officer) - ----------------------- and Director July 21, 1998 Harland L. Mischler /s/ Bernard Bressler - ----------------------- Secretary, Treasurer and July 21, 1998 Bernard Bressler Director /s/ Robert J. Stillwell - ----------------------- Director July 21, 1998 Robert J. Stillwell /s/ Thomas J. Burger - ----------------------- Director July 21, 1998 Thomas J. Burger 33 /s/ Mark Takeuchi - ----------------------- Director July 21, 1998 Mark Takeuchi 34 GRADCO SYSTEMS, INC. CONSOLIDATED BALANCE SHEETS (Dollars in thousands)
March 31, ------------------------ 1998 1997 ---- ---- ASSETS Current assets: Cash and cash equivalents $ 8,691 $18,335 Accounts receivable, less allowance for doubtful accounts of $108 and $59 29,930 24,583 Inventories 1,608 1,759 Deferred income taxes 552 252 Other current assets 166 327 ------- ------- Total current assets 40,947 45,256 Furniture, fixtures and equipment, net 1,290 2,054 License repurchase, net of accumulated amortization of $10,700 and $10,994 130 4,069 Excess of cost over acquired net assets, net of accumulated amortization of $495 and $451 1,234 1,278 Deferred income taxes 1,571 -- Other assets 3,299 5,429 ------- ------- $48,471 $58,086 ------- ------- ------- ------- LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 10,241 $ 10,939 Notes payable to suppliers 9,849 12,608 Accrued expenses 1,077 684 Income taxes payable 2,527 1,596 Current installments of long-term debt 13 11 -------- -------- Total current liabilities 23,707 25,838 Long-term debt, excluding current installments 2 15 Non-current liabilities 1,024 889 Deferred income taxes -- 1,833 Excess of fair value of net assets acquired over cost, net of accumulated amortization of $200 1,600 -- Minority interest 665 14,172 Commitments and contingencies (Note 7) Shareholders' equity: Preferred stock, no par value; authorized 7,500,000 shares, none issued Common stock, no par value; authorized 30,000,000 shares, issued 7,854,598 and 7,798,909 45,325 44,618 Accumulated deficit (23,972) (30,358) Currency translation adjustments 120 1,079 -------- -------- Total shareholders' equity 21,473 15,339 -------- -------- $ 48,471 $ 58,086 -------- -------- -------- --------
See accompanying notes to consolidated financial statements. S-2 -----END PRIVACY-ENHANCED MESSAGE-----