-----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, rh5nsW6WOJ5pDwtAfO3wzkelj5Y4R9FB/nw6UBqeKXwGZhM5nMxml7FaiPXgNWLi eB8xP/lVKNaQYBerAqrzWA== 0000730045-95-000004.txt : 19950530 0000730045-95-000004.hdr.sgml : 19950530 ACCESSION NUMBER: 0000730045-95-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950515 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: IMTEC INC CENTRAL INDEX KEY: 0000730045 STANDARD INDUSTRIAL CLASSIFICATION: 3560 IRS NUMBER: 030283466 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-12661 FILM NUMBER: 95538415 BUSINESS ADDRESS: STREET 1: ONE IMTEC LN CITY: BELLOWS FALLS STATE: VT ZIP: 05101 BUSINESS PHONE: 8024639502 MAIL ADDRESS: STREET 1: ONE IMTEC LN CITY: BELLOWS FALLS STATE: VT ZIP: 05101 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended March 31, 1995. Commission File Number: 0-12661 Exact Name of Registrant as Specified in its Charter: IMTEC, Inc. State of Incorporation: Delaware I.R.S. Employer Identification Number: 03-0283466 Address of Principal Executive Offices: One Imtec Lane Bellows Falls, VT 05101 Registrant's Telephone Number: 802-463-9502 Indicate by check mark whether the registrant (1) has filled 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 shorted period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. [X] YES [ ] NO APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Common shares outstnading as of May 9, 1995: 1,470,138 IMTEC, INC. INDEX Page # Part I Financial Information Condensed Balance Sheets - March 31, 1995 and June 30, 1994 3 - 4 Condensed Statements of Income - Three Months and Nine Months Ended March 31, 1995 and 1994 5 Condensed Statements of Cash Flows Three Months and Nine Months Ended March 31, 1995 and 1994 6 Notes to Condensed Financial Statements 7 - 8 Management's Discussion and Analysis of Financial Condition and Results of Operations 9 Part II Other Information Item 4 Submission of Matters to a Vote of Security Holders 11 Item 6 Exhibits and Reports on Form 8-K 11 Signatures 12 PART I - FINANCIAL INFORMATION IMTEC, INC. CONDENSED BALANCE SHEETS March 31, June 30, 1995 1994 (Unaudited) * ASSETS Current Assets: Cash $ 605,183 $ 3,627 Accounts and notes receivable: Trade, less allowance for doubtful accounts: March 31, 1995 - $73,982 June 30, 1995 - $59,320 1,904,804 1,033,552 Income Tax Receivable 44,170 177,602 Inventories 1,281,080 905,755 Prepaid expenses & deferred charges 106,232 77,845 Deferred income tax 46,376 46,376 --------- --------- Total Current Assets 3,987,845 2,244,757 --------- --------- Plant and equipment 3,165,174 2,903,036 Less: Accumulated depreciation 2,173,004 1,930,238 --------- --------- 992,170 972,798 --------- --------- Other Assets: Deposits 13,340 20,207 Computer software less accum amort. of $308,137 in 1995 & $243,768 in 1995, 167,058 210,089 Other intangibles less accum amort of, $345,139 in 1995 & $276,799 in 1995 271,499 315,648 --------- --------- 451,897 545,944 --------- --------- $5,431,912 $3,763,499 ========== ========== * From audited financial statements. The accompanying notes are an integral part of these condensed financial statements. PART I - FINANCIAL INFORMATION IMTEC, INC. CONDENSED BALANCE SHEETS (CONTINUED) March 31, June 30, 1995 1994 (Unaudited) * LIABILITIES AND STOCKHOLDERS EQUITY Current Liabilities Notes payable - bank $ 149,224 Current installments of L/T debt $ 86,734 86,734 Current capital lease obligations 6,171 Accounts payable 618,130 394,155 Income tax payable 154,640 - Accrued liabilities Salaries and wages 119,113 76,627 Commissions 456,598 43,149 Other 869,809 412,430 --------- --------- Total Current Liabilities 2,305,024 1,168,490 Long term debt less current installments 218,027 386,904 Long term capital lease obligations - - --------- --------- Total Liabilities 2,523,051 1,555,394 --------- --------- Stockholder's equity: Common stock - $.01 par value; authorized 5,000,000 shares, issued and outstanding: 1,470,138 shares March 31, 1995 1,331,664 shares June 30, 1995 14,027 13,317 Additional paid-in capital 2,020,068 1,860,714 Retained Earnings 874,766 334,074 --------- --------- Total Stockholder's Equity 2,908,861 2,208,105 --------- --------- Total Liabilities & Equity $ 5,431,912 $ 3,763,499 ========== ========== * From audited financial statements. The accompanying notes are an integral part of these condensed financial statements. IMTEC, INC. CONDENSED STATEMENTS OF INCOME (Unaudited) Nine Months Ended Three Months Ended March 31, March 31, 1995 1994 1995 1994 Net Sales $7,839,741 $5,023,772 $3,724,777 $1,921,700 Cost of Sales 4,473,703 2,988,725 2,175,527 1,082,041 --------- --------- --------- --------- Gross Profit 3,366,038 2,035,047 1,549,250 839,659 Selling, general and administrative expenses 2,002,403 1,772,617 964,262 582,983 Research and development expenses 503,754 398,728 247,054 112,881 --------- --------- --------- --------- Operating Profit/(Loss) 859,881 (136,298) 337,934 143,795 Other Income (Expenses): Miscellaneous income and other expenses 30,968 2,045 4,068 (65) Interest Expense (33,835) (37,999) (10,275) (15,088) --------- --------- --------- -------- Income (Loss) Before Income Taxes 857,014 (172,252) 331,727 128,642 Income Tax Exp(Benefit) 316,323 (63,699) 124,496 56,472 --------- --------- --------- -------- Net Income (Loss) $ 540,691 $(108,553) $ 207,231 $ 72,170 ========= ========= ========== ========= Weighted average number of common shares and common shares equivalents outstanding 1,472,069 1,392,104 1,479,986 1,405,231 Earnings per common share and common share equivalents $ .37 $ (.08) $ .14 $ .05 ======= ======== ======= =======
The accompanying notes are an integral part of these condensed financial statements. IMTEC, INC. CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended Three Months Ended March 31, March 31, 1995 1994 1995 1994 Cash flows from operating activities: Net Earnings $540,691 $(108,223) $207,230 $ 72,486 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation & amortization of property plant, equipment and other assets 375,475 432,979 135,809 144,689 Decrease(inc.) in A/R (871,252) (177,377) (285,762) (380,391) Decrease(inc.) income tax refundable 133,432 (39,080) (30,144) 81,091 Decrease (inc.) in inv. (375,325) (22,430) 94,484 181,058 Decrease (inc.) in prepaid expenses and other assets (21,520) (11,164) 4,375 1,881 Increase (dec.) in A/P 223,975 (130,753) (106,570) 18,932 Increase (dec.) in income tax payable 154,640 (3,829) 124,496 (13,222) Increase (dec.) in accrued liabilities 913,314 20,536 546,032 (62,021) Net cash from operating --------- --------- --------- --------- activities 1,073,430 (39,341) 689,950 44,503 Cash flows from (used in) investment activities: Expenditures for property & equipment, computer software and other intangible assets (307,667) (399,748) (134,131) (107,972) --------- --------- --------- --------- Net cash used in invest. (307,667) (399,748) (134,131) (107,972) Cash flows from (used in) financing activities: Proceeds from issuance notes payable 112,067 Principal notes payable/bank (149,224) (20,330) Proceeds from new long term debt 500,000 Principal payments on L/T debt (168,876) (109,176) (117,858) (46,313) Principal payments under capital lease obligations (6,171) (9,953) (3,437) Proceeds from issuance of stock 160,064 51,562 155,313 Net cash provided by finance --------- --------- --------- --------- activities (164,207) 412,103 37,455 62,317 Net increase (decrease) in cash 601,556 (26,986) 593,274 (1,152) Cash at the beginning of period 3,627 44,529 11,909 18,695 --------- --------- --------- -------- Cash at the end of period $605,183 $ 17,543 $605,183 $ 17,543 ========= ========= ========= ======== Supplemental Information Disclosures: Interest paid $ 33,835 $ 37,999 $ 10,275 $ 15,888 --------- --------- -------- -------- Income tax paid $256,913 $255,535 --------- --------- -------- --------
The accompanying n otes are an integral part of these condensed financial statements. IMTEC, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited) 1 - Basis of Presentation The financial information included herein is unaudited: however, such information reflects all adjustments (consisting solely of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of results for the interim periods. The results of operations for the nine month period ended March 31, 1995 are not necessarily indicative of the results to be expected for the full year. 2 - Inventories Inventories consist of: March 31, June 30, 1995 1994 Finished Products $ 46,944 $ 27,375 Work in Process 211,496 67,360 Purchased Components 1,022,640 811,020 ---------- --------- $1,281,080 $ 905,755 ========== ========= Inventory cost consisted of the cost of purchased components and supplies, manufacturing labor and manufacturing overhead. 3 - Liability for Estimated Product Warranty On March 31, 1995 and June 30, 1994, the Company had provided $284,871 and $87,107 respectively, against future product warranties based on its experience with customer claims. Warranty expenses charged to income amounted to approximately $152,532 for the nine month period ended March 31, 1995 and $78,303 for the nine month period ended March 31, 1994. 4 - Earnings (Loss) per Common Share Primary earnings per share were computed by dividing net earnings (loss) by the weighted average number of shares of common stock equivalents outstanding during the year, if dilutive. Common stock equivalents (stock options and warrants) are assumed to be exercised when they are issued and the proceeds used to repurchase outstanding shares of the Company's common stock at the average price during the period. The fully-diluted computation is performed using the same method as for the primary computation, except that the proceeds from exercised stock options and warrants are assumed to be used to repurchase outstanding shares of the Company's common stock at the higher of the average or March 31, market price. The average number of common share and common share equivalents entering into the calculation of primary and fully-diluted earnings per share are as follows: Nine months ended March 31, 1995 1994 Common shares 1,358,750 1,299,274 Options 76,959 50,986 Warrants 28,556 34,522 --------- --------- Total for primary calculation 1,464,265 1,384,782 Options 6,599 5,409 Warrants 1,205 1,913 --------- --------- Total for fully-diluted calculation 1,472,069 1,392,104 ========= ========= Three months ended March 31, 1995 1994 Common shares 1,409,098 1,306,829 Options 66,887 57,714 Warrants 0 39,669 --------- --------- Total for primary calculation 1,475,985 1,404,212 Options 4,001 769 Warrants 0 250 --------- --------- Total for fully-diluted calculation 1,479,986 1,405,231 ========= ========= IMTEC, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Three Months and Nine Months Ended March 31, 1995 as compared to Three Months and Nine Months Ended March 31, 1994 Revenues for the three months and nine months ended March 31, 1995 increased approximately 93.8% and 56.0% respectively over the corresponding periods in 1994. Revenues from the sales of Industrial Bar Code Equipment were $2,326,489 and $4,105,272 for the three and nine month periods ended March 31, 1995 compared to $899,176 and $2,200,722 for the same periods in 1994. Industrial Bar Code Equipment sales represented 62.5% and 52.4% of total revenue for the three month and nine month periods ended March 31, 1995 compared to 46.8% and 43.8% respectively for the same periods last year. It should be noted that approximately $1,540,000 for the three months and approximately $2,094,000 for the nine monthd ended March 31, 1995 represented sales to a single customer compared to approximately $595,000 and $810,000 respectively for the same periods last year to the smae customer. Management believes that the upward trend in Industrial Bar Code Equipment sales will continue due to a maturing sales force and new sales management direction. This is reflected by the increase in the Industrial Bar Code Equipment backlog, exclusive of the single customer mentioned above, from $242,721 at March 31, 1994 to $305,772 at March 31, 1995. The backlog for the order by the single customer mentioned above increased from $0 at March 31, 1994 to approximately $1,300,000 at March 31, 1995. Revenues from Bar Code labels and printing supplies were $1,398,288 and $3,734,300 for the three month and nine month periods ended March 31, 1995 compared to $1,022,980 and $2,824,330 respectively for the same periods last year. Bar Code labels and printing supplies represented 37.5% and 47.6% of total revenue for the three month and nine month periods ended March 31, 1995 compared to 53.2% and 56.2% respectively for the same periods last year. Management believes that the increase in sale of bar code labels and printing supplies is attributable to increased sales and marketing efforts that have shown positive results since started more than a year ago. Total cost of sale for the three months and nine months ended March 31, 1995 were 58.4% and 57.1% respectively, compared to 56.3% and 59.5% for the same periods in 1994. Selling, general and administrative expenses were $964,262 for the quarter ended March 31, 1995 and $2,002,403 for the nine months ended March 31, 1995, as compared to $582,983 and $1,772,617 respectively for the corresponding periods ended March 31, 1994. This increase is primarly attributed to increased levels of compensation arising from increased revenues and profitability in the current fiscal year. Total backlog, for all products, as of March 31, 1995 was approximately $2,500,000, about half of which is shipable by June 30, 1995, compared to $754,000 as of March 31, 1994. Development and engineering expenses for the three months and nine months ended March 31, 1995 were $247,054 (6.6% of sales) and $503,754 (6.4% of sales) compared to $112,881 (5.9% of sales) and $398,728 (7.9% of sales), respectively, for the same periods last year. The increase in Developement and Engineering expenses is the direct result of an increased effort to develope new products. Income tax expense is a direct result of the Company's net income or loss before taxes. The increase in Other Income is the result of the sale of some of the Company's aged equipment that is no longer used in operations. Net income for the three months and nine months ended March 31, 1995 was $207,231 and $540,691, respectively, compared to $72,170 and a loss of ($108,553), respectively, for the same periods ended March 31, 1994. The major reasons for this swing to profitability have been discussed above. As of March 31, 1995, the Company's principal available sources of liquidity were, respectively, from operations, a $700,000 bank line of credit, all of which was available as of March 31, 1995, and a seven (7) year bank term note taken in December, 1993, with an outstanding balance of $404,762 as of March 31, 1995. Accounts receivable increased by $871,252, from $1,033,552 at June 30, 1994 to $1,904,804 at March 31, 1995, a direct result of the increase in revenues from $1,441,834 for the quarter ended June 30, 1994 to $3,366,036 for the quarter ended March 31, 1995. Inventories increased by $375,325, from $905,755 at June 30, 1994 to $1,281,080 at March 31, 1995, as a result of increasing levels of business. The Company's capital commitments for fiscal 1995 are expected to be at the same level as fiscal 1994. The Company believes that it will be able to offset the effects of inflation by selected price increases in its products, although it can give no assurances in this regard. PART II - OTHER INFORMATION Item 1 - Legal Proceedings None Item 2 - Changes in Securities Not applicable 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 None 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 hereunto duly authorized. IMTEC, INC. BY: /s/ Richard L. Kalich ---------------------------- Richard L. Kalich President & Chief Executive Officer BY: /s/ George S. Norfleet III ---------------------------- George S. Norfleet III Secretary / Treasurer -----END PRIVACY-ENHANCED MESSAGE-----