-----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, Us9m3ai/tbnRm54LTaR2DjRwyA+QjDxdwrTHkIGC2SHVHeCoFMzTer8Fl1lScShn 6l4COScGZmpYDGLq5hVD2A== 0000728376-98-000004.txt : 19980521 0000728376-98-000004.hdr.sgml : 19980521 ACCESSION NUMBER: 0000728376-98-000004 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980404 FILED AS OF DATE: 19980520 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: AXIOHM TRANSACTION SOLUTIONS INC CENTRAL INDEX KEY: 0000728376 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRONIC COMPONENTS, NEC [3679] IRS NUMBER: 942917470 STATE OF INCORPORATION: CA FISCAL YEAR END: 0102 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: SEC FILE NUMBER: 000-13459 FILM NUMBER: 98628401 BUSINESS ADDRESS: STREET 1: 15070 AVENUE OF SCIENCE CITY: SAN DIEGO STATE: CA ZIP: 92128 BUSINESS PHONE: 6194513485 MAIL ADDRESS: STREET 1: 15070 AVENUE OF SCIENCE CITY: SAN DIEGO STATE: CA ZIP: 92128 FORMER COMPANY: FORMER CONFORMED NAME: DH TECHNOLOGY INC DATE OF NAME CHANGE: 19920703 10-Q/A 1 AXIOHM TRANSACTION SOLUTIONS 10Q/A Q1 1998 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q/A AMENDMENT NO. 1 (Mark One) [X] Quarterly Report pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the quarterly period ended April 4, 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: 0-13459 Axiohm Transaction Solutions, Inc. (Exact name of registrant as specified in its charter) California 94-2917470 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 15070 Avenue of Science, San Diego, California 92128 (Address of principal executive office) Registrant's telephone number, including area code: (619) 451-3485 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 XXX No____ As of April 4, 1998, there were 6,517,426 shares of the registrant's Common Stock outstanding.
PART 1 - FINANCIAL INFORMATION ITEM 1 - Financial Statements AXIOHM TRANSACTION SOLUTIONS, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands) April 4, December 31, ----------------- ------------------- 1998 1997 ----------------- ------------------- (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 3,158 $ 3,877 Restricted cash - 8,594 Accounts receivable, net 34,825 30,515 Inventories 33,904 30,103 Prepaid expenses and other current assets 10,429 11,015 ----------------- ------------------- Total current assets 82,316 84,104 Fixed assets, net of accumulated depreciation 21,161 21,535 Intangible assets 86,848 92,371 Other assets 5,826 6,034 ================= =================== Total assets $ 196,151 $ 204,044 ================= =================== LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) Current liabilities: Accounts payable $ 19,181 $ 17,351 Current portion of long-term debt 5,487 5,948 Current portion of government grant obligations 700 649 Accrued payroll, payroll taxes and benefits 5,314 6,194 Accrued expenses 3,527 4,645 Income taxes payable - 1,937 Deferred revenue 1,952 2,056 Rabbi Trust - 8,594 Other current liabilities 1,448 4,481 ----------------- ------------------- Total current liabilities 37,609 51,855 Non-current liabilities: Long-term debt 178,486 165,564 Government grant obligations 1,462 1,569 Other long-term liabilities 3,120 3,137 ----------------- ------------------- Total liabilities $ 220,677 $ 222,125 ----------------- ------------------- Shareholders' equity (deficit): Preferred shares, no par value Authorized: 1,000,000 shares, none issued $ - $ - Common shares: Common stock, authorized: 28,500,000 shares; issued and outstanding: 6,517,426 in 1998 and 6,512,926 shares in 1997 23,898 23,852 Foreign currency translation adjustment (413) (658) Retained earnings (accumluated deficit) (48,011) (41,275) ----------------- ------------------- Total shareholders' equity (deficit) (24,526) (18,081) ----------------- ------------------- Total liabilities and shareholders' equity $ 196,151 $ 204,044 ================= =================== The accompanying notes are an integral part of these condensed consolidated financial statements.
AXIOHM TRANSACTION SOLUTIONS, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (In thousands, except per share data) Period Ended April 4, March 31, ----------------- ----------------- 1998 1997 ----------------- ----------------- (Unaudited) (Unaudited) Net sales $ 57,069 $ 24,891 Cost of net sales 36,995 17,324 ----------------- ----------------- Gross margin 20,074 7,567 Operating expenses: Selling, general and administrative 8,804 2,926 Research and development 4,090 1,740 Acquisition related amortization 8,462 51 ----------------- ----------------- Total operating expenses 21,356 4,717 ----------------- ----------------- Income (loss) from operations (1,282) 2,850 Interest and other income 88 49 Interest and other expense 4,367 175 ----------------- ----------------- Income (loss) before income taxes (5,561) 2,724 Income taxes 1,175 1,099 ----------------- ----------------- Net income (loss) $ (6,736) $ 1,625 ================= ================= Basic: Net income (loss) per share $ (1.03) $ 0.25 Shares used in per share calculation 6,517 6,513 Diluted: Net income (loss) per share $ (1.03) $ 0.25 Shares used in per share calculation 6,517 6,513 The accompanying notes are an integral part of these condensed consolidated financial statements.
AXIOHM TRANSACTION SOLUTIONS, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (In thousands) Period Ended April 4, March 31, ------------------ ------------------ 1998 1997 ------------------ ------------------ (Unaudited) (Unaudited) Cashflows from operating activities: Net income (loss) $ (6,736) $ 1,625 Adjustments to reconcile net income (loss) to net cash provided by operations: Depreciation and amortization 10,209 779 Other (1,961) 1,055 Changes in assets and liabilities, net of effects of acquisition of business: Accounts receivable (4,310) (2,762) Inventories (3,801) (1,668) Accounts payable and accrued expenses (272) 569 Other current assets 586 (338) Other current liabilities (3,033) (1,205) ------------------ ------------------ Net cash used in operating activities $ (9,318) $ (1,945) Cashflows from investing activities: Payment for acquisition of business and other intangibles $ (3,207) $ - Capital expenditures and other (890) (1,680) ------------------ ------------------ Net cash used in investing activities $ (4,097) $ (1,680) Cashflows from financing activities: Net borrowings under line of credit $ 13,205 $ 1,543 Principal repayments under long term debt (800) (33) Payments of dividends - (98) Exercise of stock options 46 - Net loans to related parties - 1,608 ------------------ ------------------ Net cash provided by financing activities $ 12,451 $ 3,020 Effect of exchange rate changes on cash 245 (393) ------------------ ------------------ Net increase in cash and cash equivalents $ (719) $ (998) Cash and cash equivalents at beginning of period 3,877 1,839 ------------------ ------------------ Cash and cash equivalents at end of period $ 3,158 $ 841 ================== ================== Supplemental Cashflow Disclosures: Cash paid during the year for: Interest $ 7,252 $ 203 Income taxes 3,112 64 Other transactions: Capital lease obligation $ - $ 20 Payment of restricted cash to former officers (8,594) - Reduction of liability to former officers $ 8,594 $ - ================== ================== The accompanying notes are an integral part of these condensed consolidated financial statements
AXIOHM TRANSACTION SOLUTIONS, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (April 4, 1998 - Unaudited) Note 1: Unaudited Interim Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the quarter ended April 4, 1998 are not necessarily indicative of the results which may be expected for the year ended December 31, 1998 or any other period. Reference is made to the Consolidated Financial Statements and Notes thereto included in the Company's Annual Report on Form 10-K filed on March 31, 1998 as amended on April 15, 1998. In May, 1998, Axiohm Transaction Solutions, Inc. (the "Company") changed its fiscal year from the twelve month period ended December 31 to the 52 or 53-week period that ends on the Saturday nearest December 31, effective for fiscal year 1998. As a result, the Company's first quarter of 1998 represents the thirteen-week period ended on April 4, 1998, and the Company's 1998 fiscal year will end on January 2, 1999. Fiscal year 1998 will have fifty-three weeks. The quarter ended March 31, 1997, contained 12 weeks and six days and the difference between the two comparable periods is immaterial in terms of sales and net income. Note 2: Basis of Presentation The financial statements of Axiohm include the accounts of its wholly owned subsidiaries in the United States, France, Mexico, the United Kingdom, Australia, Hong Kong and Japan. All intercompany accounts and transactions have been eliminated. On August 21, 1997, pursuant to an Agreement and Plan of Merger dated as of July 14, 1997 (the "Agreement of Merger"), AX Acquisition Corporation ("AX" or the "Purchaser"), an indirect wholly-owned subsidiary of Axiohm S.A., acquired approximately 88%, or 7,000,000 shares, of the outstanding Common Stock of DH Technology, Inc. ("DH") through a public tender offer to the shareholders of DH at a price of $25 per share (the "Tender Offer"). On October 2, 1997, pursuant to the Agreement of Merger, AX acquired, directly or indirectly, 100% of the outstanding Common Stock of Axiohm S.A. in exchange for 5,518,524 shares of DH Common Stock and $12.2 million in cash (the "Share Exchange Offer"). Simultaneously with the Share Exchange Offer, DH purchased all of the outstanding shares of AX in exchange for the assumption of approximately $190 million of debt (the "Acquisition Financing") incurred by AX to finance the Tender Offer. As part of the Acquisition Financing the Company completed a private placement (the "Senior Notes Offering") of $120 million of its 9.75% Senior Subordinated Notes due 2007 (the "Notes"). The Notes were exchanged in March 1998 for new, substantially identical Notes which have been registered under the Securities Act of 1933, as amended. The Company's payment obligation under the Senior Notes is jointly and severally fully and unconditionally guaranteed on a senior subordinated basis by certain of the Company's subsidiaries (the "Guarantor Subsidiaries"), all of which are directly or indirectly wholly owned by the Company. Immediately after the Share Exchange Offer, AX was merged with and into DH (the "Merger"), the surviving legal entity, and the company changed its name from "DH Technology, Inc." to "Axiohm Transaction Solutions, Inc." (the "Company"). In connection with the Merger, Axiohm S.A. changed its tax filing status and was renamed Axiohm S.A.R.L. Immediately after the Merger, approximately 85% of DH's outstanding Common Stock was held by the former shareholders of Axiohm S.A.R.L. and 15% was held by the former public shareholders of DH. The Tender Offer, the Share Exchange Offer and the Merger (collectively the "Acquisition") have been accounted for in a manner similar to a reverse acquisition, in which Axiohm S.A.R.L. was treated as the acquiror for accounting purposes. Accordingly, the historical financial information for periods prior to August 31, 1997 is that of Axiohm S.A.R.L. The effective date of the Acquisition and Merger of DH for accounting purposes was August 31, 1997, and, accordingly, the capital structure of the Company has been retroactively restated to reflect the number of shares and options outstanding as a result of the Acquisition. Note 3: Inventories The composition of inventories at April 4, 1998 and December 31, 1997 was as follows: April 4, 1998 December 31, 1997 Raw materials $24,929,000 $20,014,000 Work in process $2,733,000 2,328,000 Finished goods $6,242,000 7,761,000 ----------- ----------- Totals $33,904,000 $30,103,000 =========== =========== Note 4: Guarantors and Financial Information The following consolidating financial information is presented for purposes of complying with the reporting requirements of the Guarantor Subsidiaries. Separate financial statements and other disclosures with respect to the Guarantor Subsidiaries are not presented because the Company believes that such financial statements and other information would not provide additional information that is material to investors. There are no contractual restrictions, under the Notes or otherwise, upon the ability of the Guarantor Subsidiaries to make distributions or pay dividends to their respective equityholders. Directly or indirectly, the Company is the sole equityholder of all of the Guarantor Subsidiaries. The condensed consolidating financial information presents condensed financial statements as of April 4, 1998 and December 31, 1997 and for the quarter ended April 4, 1998 of: a) the Company on a parent company only basis ("Parent") (carrying its investments in the subsidiaries under the equity method), b) the Guarantor Subsidiaries separated as to French Guarantors (Axiohm S.A.R.L., Dardel Technologies E.U.R.L., Axiohm Investissements S.A.R.L.), and U.S. Guarantors (Axiohm IPB, Inc., Cognitive L.L.C., Cognitive Solutions, Inc., and Stadia Colorado Corp.), c) the Non-Guarantor Subsidiaries (DH Technology Plc, DH Technology Pty, DH Technologia, Axiohm Ltd. (Hong Kong), and Axiohm Japan Inc.), d) elimination entries necessary to consolidate the Parent Company and its subsidiaries, and e) the Company on a consolidated basis. The condensed consolidating financial information also presents condensed financial statements for the quarter ended March 31, 1997 of: a) the Guarantor Subsidiaries which were in existence and were within the Company's consolidated structure during the quarter ended March 31, 1997 separated as to French Guarantors (Axiohm S.A.R.L., but excluding Dardel Technologies E.U.R.L.), and U.S. Guarantors (Axiohm IPB, Inc.), b) The Non-Guarantor Subsidiaries which were in existence and were within the Company's consolidated structure during the quarter ended March 31, 1997 (Axiohm Ltd. (Hong Kong) and Axiohm Japan Inc.), c) elimination entries necessary to consolidate such Guarantor and Non-Guarantor Subsidiaries, and d) such Guarantor and Non-Guarantor Subsidiaries on a consolidated basis.
AXIOHM TRANSACTION SOLUTIONS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) Condensed Consolidating Balance Sheets (In thousands) April 4, 1998 (Unaudited) -------------------------------------------------------------------------------- Guarantor Subsidiaries Non-Guarantor ----------------------- Parent French US Subsidiaries Eliminations Consolidated -------------------------------------------------------------------------------- ASSETS Current assets: Cash and cash equivalents $ 15,506 $ 333 $ (13,627) $ 946 $ - $ 3,158 Restricted cash - - - - - - Accounts receivable, net 10,433 3,264 18,231 2,897 - 34,825 Inventories 5,498 7,875 17,390 4,575 (1,434) 33,904 Prepaid expenses and other current assets 7,256 1,817 644 181 531 10,429 Intercompany (16,532) 827 11,790 (3,240) 7,155 - -------------------------------------------------------------------------------- Total current assets 22,161 14,116 34,428 5,359 6,252 82,316 Fixed assets, net of accumulated depreciation 3,775 3,838 11,863 1,685 - 21,161 Intangible assets 83,307 93 3,440 8 - 86,848 Other assets 5,491 8,948 76 51 (8,740) 5,826 Investment in Subsidiaries 45,030 (45,030) - ================================================================================ Total assets $ 159,764 $ 26,995 $ 49,807 $ 7,103 $ (47,518) $ 196,151 ================================================================================ LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) Current liabilities : - Accounts payable $ 4,990 $ 5,887 $ 6,809 $ 1,495 $ - $ 19,181 Current portion of long-term debt 4,824 575 32 56 - 5,487 Current portion of government grant obligations - 700 - - - 700 Accrued payroll, payroll taxes and benefits 2,041 1,856 1,362 55 - 5,314 Accrued expenses 2,381 256 824 66 - 3,527 Income taxes payable (4,608) 3,053 476 73 1,006 - Deferred revenue 324 1,061 567 - - 1,952 Rabbi Trust - - - - - - Other current liabilities (832) 2,713 790 69 (1,292) 1,448 -------------------------------------------------------------------------------- Total current liabilities 9,120 16,101 10,860 1,814 (286) 37,609 Non-current liabilities: Long-term debt 176,860 1,548 40 38 - 178,486 Government grant obligations - 912 550 - - 1,462 Other long-term liabilities (2,168) 3,391 1,897 - - 3,120 -------------------------------------------------------------------------------- Total liabilities 183,812 21,952 13,347 1,852 (286) 220,677 -------------------------------------------------------------------------------- Shareholders equity : Preferred shares, no par value Authorized: 1,000,000 shares, none issued Common shares: Common stock, authorized: 25,500,000 shares; issued and outstanding: 6,517,426 in 1998 and 6,512,926 in 1997 23,898 4,167 - 360 (4,527) 23,898 Capital in excess of par value - - - - - - Foreign currency translation adjustment 65 (494) - 129 (113) (413) Retained earnings (accumluated deficit) (48,011) 1,370 36,460 4,762 (42,592) (48,011) -------------------------------------------------------------------------------- Total shareholders' equity (deficit) (24,048) 5,043 36,460 5,251 (47,232) (24,526) -------------------------------------------------------------------------------- ================================================================================ Total liabilities and shareholders' equity $ 159,764 $ 26,995 $ 49,807 $ 7,103 $ (47,518) $ 196,151 ================================================================================
AXIOHM TRANSACTION SOLUTIONS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) Condensed Consolidating Statements of Operations (In thousands) April 4, 1998 (Unaudited) ------------------------------------------------------------------------------------- Guarantor Subsidiaries Non-Guarantor ---------------------- Parent French US Subsidiaries Eliminations Consolidated ----------- --------- ----------- ------------- -------------- --------------- Net Sales $15,812 $ 9,677 $ 34,003 $ 4,992 $ (7,415) $ 57,069 Cost of net sales 10,280 6,222 24,909 3,794 (8,210) 36,995 ------------------------------------------------------------------------------------- Gross margin 5,532 3,455 9,094 1,198 795 20,074 Operating expenses Selling, general, and administrative 2,640 915 4,159 1,090 - 8,804 Research & development 1,183 921 1,829 157 - 4,090 Acquisition related amortization 8,462 - - - - 8,462 -------------------------------------------------------------------------------------- Total operating expenses 12,285 1,836 5,988 1,247 - 21,356 -------------------------------------------------------------------------------------- Income (loss) from operations (6,753) 1,619 3,106 (49) 795 (1,282) Interest and other income 1,262 34 15 20 (1,243) 88 Interest and other expense 4,312 1,294 3 1 (1,243) 4,367 Equity earnings in subsidiaries 1,998 (1,998) - -------------------------------------------------------------------------------------- Income (loss) before income taxes (7,805) 359 3,118 (30) (1,203) (5,561) -------------------------------------------------------------------------------------- Income taxes (1,069) 669 1,254 (12) 333 1,175 -------------------------------------------------------------------------------------- Net income (loss) (6,736) (310) 1,864 (18) (1,536) (6,736) =======================================================================================
AXIOHM TRANSACTION SOLUTIONS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) Condensed Consolidating Statements of Cash Flows (In thousands) Period Ending April 4, 1998 (Unaudited) ------------------------------------------------------------------------- Guarantor Subsidiaries Non-Guarantor ---------------------- Parent French US Subsidiaries Eliminations Consolidated ------------------------------------------------------------------------- Cashflows from operating activities: Net cash provided by (used in) operating activities $ (7,761) $ 9,479 $ (1,553) $ (1,021) $ (8,462) $ (9,318) ------------------------------------------------------------------------- Cashflows from investing activities: Payment for acquisition of business and other $ (3,207) $ - $ - $ - $ - $ (3,207) Intangibles Capital expenditures and other (549) (8,623) (398) 248 8,432 (890) ------------------------------------------------------------------------- Net cash provided by (used in) investing activities $ (3,756) $ (8,623) $ (398) $ 248 $ 8,432 $ (4,097) ------------------------------------------------------------------------- Cashflows from financing activities: Net borrowings under line of credit $ 13,892 $ (724) $ (10) $ 47 $ - $ 13,205 Principal repayments under long term debt (800) - - - - (800) Payments of dividends - - - - - - Exercise of stock options 46 - - - - 46 Net loans to related parties - - - - - - ------------------------------------------------------------------------- Net cash provided by (used in) financing activities $ 13,138 $ (724) $ (10) $ 47 $ - $ 12,451 Effect of exchange rate changes on cash 25 63 - 127 30 245 ------------------------------------------------------------------------- Net increase in cash and cash equivalents $ 1,646 $ 195 $ (1,961) $ (599) $ - $ (719) ------------------------------------------------------------------------- Cash and cash equivalents at beginning of period 13,860 138 (11,666) 1,545 - 3,877 ------------------------------------------------------------------------- Cash and cash equivalents at end of period $ 15,506 $ 333 $ (13,627) $ 946 $ - $ 3,158 =========================================================================
AXIOHM TRANSACTION SOLUTIONS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) Condensed Consolidating Balance Sheets (In thousands) December 31, 1997 ---------------------------------------------------------------------------- Guarantor Subsidiaries Non-Guarantor ------------------------ Parent French US Subsidiaries Eliminations Consolidated ----------------------------------------------------------------------------- ASSETS Current assets: Cash and cash equivalents $ 13,860 $ 138 $ (11,666) $ 1,545 $ - $ 3,877 Restricted cash 8,594 - - - - 8,594 Accounts receivable, net 10,388 3,760 15,209 3,099 (1,941) 30,515 Inventories 3,611 4,995 17,140 4,600 (243) 30,103 Prepaid expenses and other current assets 4,235 9,759 437 (3,316) (100) 11,015 Intercompany (14,259) 2,612 11,514 (1,761) 1,894 - ---------------------------------------------------------------------------- Total current assets 26,429 21,264 32,634 4,167 (390) 84,104 Fixed assets, net of accumulated depreciation 3,847 4,052 11,679 1,957 - 21,535 Intangible assets 88,555 93 3,521 202 - 92,371 Other assets 5,428 413 418 83 (308) 6,034 Investment in Subsidiaries 45,030 - - - (45,030) - ============================================================================ Total assets $ 169,289 $ 25,822 $ 48,252 $ 6,409 $ (45,728) $ 204,044 ============================================================================ LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) Current liabilities : Accounts payable $ 2,510 $ 6,570 $ 6,767 $ 1,504 $ - $ 17,351 Current portion of long-term debt 5,689 227 32 - - 5,948 Current portion of government grant obligations - 649 - - - 649 Accrued payroll, payroll taxes and benefits 690 3,557 1,947 - - 6,194 Accrued expenses 1,620 1,196 2,113 (284) - 4,645 Income taxes payable 1,937 174 (174) - - 1,937 Deferred revenue 416 1,121 519 - - 2,056 Rabbi Trust 8,594 - - - - 8,594 Other current liabilities 4,481 - - - - 4,481 ---------------------------------------------------------------------------- Total current liabilities 25,937 13,494 11,204 1,220 - 51,855 Non-current liabilities: Long-term debt 162,903 2,014 600 47 - 165,564 Government grant obligations - 1,569 - - - 1,569 Other long-term liabilities (2,168) 3,455 1,850 - - 3,137 ---------------------------------------------------------------------------- Total liabilities 186,672 20,532 13,654 1,267 - 222,125 ---------------------------------------------------------------------------- Shareholders equity Common stock, authorized: 25,500,000 shares; issued and outstanding: 6,512,926 shares in 1998 and 1997 23,852 4,167 - 360 (4,527) 23,852 Capital in excess of par value - - - - - - Foreign currency translation adjustment 40 (557) - 2 (143) (658) Retained earnings (accumluated deficit) (41,275) 1,680 34,598 4,780 (41,058) (41,275) ---------------------------------------------------------------------------- Total shareholders' equity (deficit) (17,383) 5,290 34,598 5,142 (45,728) (18,081) ---------------------------------------------------------------------------- ============================================================================ Total liabilities and shareholders' equity $ 169,289 $ 25,822 $ 48,252 $ 6,409 $ (45,728) $ 204,044 ============================================================================
AXIOHM TRANSACTION SOLUTIONS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) Condensed Consolidating Statements of Operations (In thousands) March 31, 1997 (Unaudited) ------------------------------------------------------------------------------- Guarantor Subsidiaries Non-Guarantor ----------------------------- French US Subsidiaries Eliminations Consolidated ------------- ------------- ------------- -------------- --------------- Net Sales $ 30,133 $ 455 $ (5,697) $ (5,697) $ 24,891 Cost of net sales 22,311 401 (5,701) (5,388) 17,324 ------------------------------------------------------------------------------- Gross margin 7,822 54 4 (309) 7,567 Operating expenses Selling, general, and administrative 2,787 191 (1) (1) 2,977 Research & development 1,735 - 5 5 1,740 Acquisition related amortization - - - - ------------------------------------------------------------------------------- Total operating expenses 4,522 191 4 4 4,717 ------------------------------------------------------------------------------- Income (loss) from operations 3,300 (137) - (313) 2,850 Interest and other income 49 - - 49 Interest and other expense 174 1 - 175 Equity earnings in subsidiaries (336) 336 - ------------------------------------------------------------------------------- Income (loss) before income taxes 2,839 (138) - 23 2,724 ------------------------------------------------------------------------------- Income taxes 1,214 - (115) 1,099 ------------------------------------------------------------------------------- Net income (loss) $ 1,625 $ (138) $ - $ 138 $ 1,625 ===============================================================================
AXIOHM TRANSACTION SOLUTIONS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) Condensed Consolidating Statements of Cash Flows (In thousands) March 31, 1997 (Unaudited) -------------------------------------------------------------------- Guarantor Subsidiaries Non-Guarantor --------------------------- French US Subsidiaries Eliminations Consolidated -------------------------------------------------------------------- Cashflows from operating activities: Net cash provided by (used in) operating activities $ 46 $ (2,326) $ (1) $336 $ (1,945) -------------------------------------------------------------------- Cashflows from investing activities: Payment for acquisition of business and other intangibles $ - $ - $ - $ - $ - Capital expenditures and other (471) (1,193) (16) - (1,680) -------------------------------------------------------------------- Net cash used in investing activities $ (471) $ (1,193) $ (16) $ - $ (1,680) -------------------------------------------------------------------- Cashflows from financing activities: Net borrowings under line of credit $ - $ 1,552 $ (9) $ - $ 1,543 Principal repayments under long term debt (25) (8) - - (33) Payments of dividends (52) (46) - - (98) Exercise of stock options - - - - - Net loans to related parties 1,180 300 128 - 1,608 -------------------------------------------------------------------- Net cash provided by (used in) financing activities $ 1,103 $ 1,798 $ 119 $ - $ 3,020 Effect of exchange rate changes on cash (419) 26 - - (393) -------------------------------------------------------------------- Net increase in cash and cash equivalents $ 259 $ (1,695) $ 102 $336 $ (998) -------------------------------------------------------------------- Cash and cash equivalents at beginning of period 1,494 230 115 - 1,839 -------------------------------------------------------------------- Cash and cash equivalents at end of period $ 1,753 $ (1,465) $ 217 $336 $ 841 ===================================================================
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. Axiohm Transaction Solutions, Inc. by: May 19, 1998 /s/Janet W. Shanks - -------------------- ----------------------------------------- Date Janet W. Shanks, Chief Accounting Officer (Chief Accounting Officer) -----END PRIVACY-ENHANCED MESSAGE-----