-----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, AQUxfo8oVIPXeTKeMESvSl3KBtTLOKRo2fJpmn5aMIzDD/is7zm85Vtk81WEXcV2 QnkWurIsPVGKOX5wAx+XWA== 0000730045-96-000001.txt : 19960216 0000730045-96-000001.hdr.sgml : 19960216 ACCESSION NUMBER: 0000730045-96-000001 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960214 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: IMTEC INC CENTRAL INDEX KEY: 0000730045 STANDARD INDUSTRIAL CLASSIFICATION: GENERAL INDUSTRIAL MACHINERY & EQUIPMENT [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: 96520105 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 10-Q FOR PERIOD ENDED DECEMBER 31, 1995 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 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 December 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 outstanding as of January 31, 1996, 1,545,088 IMTEC, INC. INDEX Page # Part I Financial Information Condensed Balance Sheets - December 31, 1995 and June 30, 1995 3 - 4 Condensed Statements of Income - Three Months and Six Months Ended December 31, 1995 and 1994 5 Condensed Statements of Cash Flows Three Months and Six Months Ended December 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
December 31, June 30, 1995 1995 . (Unaudited) * ASSETS Current Assets: Cash $ 351,894 $ 285,727 Marketable Securities 300,000 400,000 Accounts and notes receivable: Trade, less allowance for doubtful accounts: December 31, 1995 - $101,825 June 30, 1995 - $101,042 1,140,580 1,640,008 Inventories 1,319,968 1,241,964 Prepaid expenses and deferred charges 126,182 78,683 Deferred income tax 148,489 148,489 ----------- ----------- Total Current Assets 3,387,113 3,794,871 ------------ ------------ Plant and equipment 3,519,419 3,266,232 Less: Accumulated depreciation 2,411,866 2,237,151 ------------ ------------ 1,107,553 1,029,081 ------------ ------------- Other Assets: Deposits 8,815 28,205 Computer software less accumulated amortization of $354,256 in 1996 and $317,718 in 1995, 139,982 161,160 Other intangibles less accumulated amortization of, $406,925 in 1996 and $362,535 in 1995 227,101 254,859 ----------- ----------- 367,083 444,224 ----------- ----------- $ 4,870,564 $ 5,268,176 ========= ========= * 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)
December 31, June 30, 1995 1995 . (Unaudited) * LIABILITIES AND STOCKHOLDERS EQUITY Current Liabilities Notes payable - bank $ 0 $ 0 Current installments of long term debt 0 0 Current capital lease obligations 0 0 Accounts payable 313,306 636,721 Income tax payable (26,433) 4,161 Accrued liabilities Salaries and wages 89,258 358,750 Commissions 203,959 67,113 Other 443,819 801,872 ----------- ------------ Total Current Liabilities 1,023,909 1,868,617 Long term debt less current installments - - Long term capital lease obligations - - ---------- ---------- 1,023,909 1,868,617 ---------- ---------- Stockholder's equity: Common stock - $.01 par value; authorized 5,000,000 shares, issued and outstanding: 1,478,888 shares December 31, 1995 1,470,138 shares June 30, 1995 14,789 14,701 Additional paid-in capital 2,227,102 2,199,689 Retained Earnings 1,604,764 1,185,169 ----------- ----------- Total Stockholder's Equity 3,846,655 3,399,559 ----------- ----------- $ 4,870,564 $ 5,268,176 ======== ======== * From audited financial statements.
The accompanying notes are an integral part of these condensed financial statements.
IMTEC, INC. CONDENSED STATEMENTS OF INCOME (Unaudited) Six Months Ended Three Months Ended December 31, December 31, 1995 1994 1995 1994 ---- ---- ---- ---- Net Sales $4,764,384 $4,114,963 $2,184,273 $2,261,396 Cost of Sales 2,685,783 2,298,172 1,259,346 1,267,863 ----------- ----------- ----------- ----------- Gross Profit 2,078,601 1,816,791 924,927 993,533 Selling, general and administrative expenses 1,090,016 1,038,138 403,271 564,259 Research and development expenses 305,960 256,704 151,866 142,950 ----------- ---------- ---------- ---------- Operating Profit/(Loss) 682,625 521,949 369,790 286,324 Other Income (Expenses): Miscellaneous income and other expenses 12,820 26,900 1,411 26,875 Interest Expense 0 (23,561) 0 (13,077) ---------- -------- -------- -------- Income (Loss) Before Income Taxes 695,445 525,288 371,201 300,122 ---------- ---------- ---------- ---------- Income Tax Expense (Benefit) 275,850 191,827 147,237 108,957 --------- --------- --------- --------- Net Income (Loss) $ 419,595 $ 333,461 $ 223,964 $ 191,165 ======= ======= ======= ======= Weighted average number of common shares and common shares equivalents outstanding 1,563,634 1,467,663 1,579,532 1,470,213 Earnings per common share and common share equivalents $ .27 $ .23 $ .14 $ .13 ====== ====== ====== ======
The accompanying notes are an integral part of these condensed financial statements.
IMTEC, INC. CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended Three Months Ended December 31, December 31, 1995 1994 1995 1994 ---- ---- ---- ---- Cash flows from operating activities: Net Earnings $419,595 $333,453 $223,964 $191,165 Adjust, to reconcile net earnings to, net cash provided by operating activities: Depreciation & amortization of property plant, equipment and other assets 255,643 239,666 133,508 117,608 Decrease(inc.) in accounts receivable 499,428 (585,490) (53,849) (181,642) Decrease(inc.) income tax refundable 163,576 50,890 Decrease (inc.) in inventory (78,004) (469,809) (41,596) (422,561) Decrease (inc.) in prepaid expenses and other assets (28,109) (25,895) (5,898) (10,223) Increase (dec.) in accounts payable (323,415) 330,545 (64,819) 315,715 Increase (dec.) in income tax payable (30,594) 30,144 (122,213) 30,144 Increase (dec.) in accrued liabilities (490,699) 367,290 (300,130) 265,823 ---------- -------- ---------- --------- Net cash from by operating activities 223,845 383,480 (213,033) 356,955 Cash flows from (used in) investment activities: Expenditures for property & equipment, computer software and other intangible assets (285,179) (173,536) (88,672) (98,789) ---------- ---------- ---------- ---------- Net cash used in invest. activities (285,179) (173,536) (88,672) (98,789) Cash flows from (used in) financing activities: Principal notes payable to bank (149,224) (253,454) Proceeds from new long term debt Principal payments on long term debt (51,019) (16,641) Principal payments under capital lease obligations (6,171) (3,694) Proceeds from issuance of stock 27,501 4,751 2,748 --------- -------- --------- Net cash provided by finance activities 27,501 (201,663) 0 (271,041) Net increase (decrease) in cash (33,833) 8,281 (319,705) (12,875) Cash at the beginning of period 685,727 3,627 971,599 24,783 -------- ---------- -------- --------- Cash at the end of period $ 651,894 $ 11,908 $ 651,894 $ 11,908 ======= ======= ======= ======= Supplemental Information Disclosures: Interest paid $ 23,561 $ 13,077 --------- --------- Income tax paid $ 306,444 $ 256,913 $ 269,450 $ 255,535 --------- --------- --------- --------- ,The accompanying notes 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 six month period ended December 31, 1995 are not necessarily indicative of the results to be expected for the full year. 2 - Inventories
Inventories consist of: December 31, June 30, 1995 1995 Finished Products $ 11,128 $ 403,512 Work in Process 35,096 121,200 Purchased Components 1,273,744 1,046,906 ----------- ----------- 1,319,968 1,571,618 Less: Progress billing -- (329,654) ----------- ----------- $ 1,319,968 $ 1,241,964 ======== ========
Inventory cost consisted of the cost of purchased components and supplies, manufacturing labor and manufacturing overhead. 3 - Liability for Estimated Product Warranty On December 31, 1995 and June 30, 1995, the Company had provided $264,660 and $289,906 respectively, against future product warranties based on its experience with customer claims. Warranty expenses charged to income amounted to approximately $57,704 for the six month period ended December 31, 1995 and $29,944 for the six month period ended December 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 December 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:
Six months ended December 31, 1995 1994 Common shares 1,477,122 1,333,128 Options 86,512 81,995 Warrants 0 42,834 ---------- ---------- Total for primary calculation 1,563,634 1,457,957 Options 0 7,899 Warrants 0 1,808 ---------- ---------- Total for fully-diluted calculation 1,563,634 1,467,663 ======= ======= Three months ended December 31, 1995 1994 Common shares 1,478,888 1,334,054 Options 100,644 90,380 Warrants 0 44,654 ---------- ---------- Total for primary calculation 1,579,532 1,469,089 Options 0 920 Warrants 0 205 ---------- ----------- Total for fully-diluted calculation 1,579,532 1,470,213 ======= =======
IMTEC, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Three Months and Six Months Ended December 31, 1995 as compared to Three Months and Six Months Ended December 31, 1994 Revenues for the three months decreased approximately 3.4% and revenues for the six months ended December 31, 1995 increased approximately 15.8%, respectively, over the corresponding periods in 1994. Revenues from the sales of Industrial Bar Code Equipment were $943,933 and $2,349,104 for the three and six month periods ended December 31, 1995 compared to $1,065,662 and $1,778,782 for the same periods in 1994. Industrial Bar Code Equipment sales represented 43.2% and 49.3% of total revenue for the three month and six month periods ended December 31, 1995 compared to 47.1% and 43.2% respectively for the same periods last year. It should be noted that approximately $279,000 for the three months and approximately $1,059,000 for the six months ended December 31, 1995 represented sales to a single customer compared to approximately $195,000 and $550,000 respectively for the same periods last year to the same customer. Equipment backlog, exclusive of the single customer mentioned above, increased from $506,255 at December 31, 1994 to $549,211 at December 31, 1995. The backlog for the order by the single customer mentioned above was approximately $2,800,000 at December 31, 1994. That order completed shipment in October, 1995. Revenues from Bar Code labels and printing supplies were $1,240,340 and $2,415,280 for the three month and six month periods ended December 31, 1995 compared to $1,195,734 and $2,336,041 respectively for the same periods last year. Bar Code labels and printing supplies represented 56.8% and 50.7% of total revenue for the three month and six month periods ended December 31, 1995 compared to 52.9% and 56.8% respectively for the same periods last year. Cost of sale for the three months and six months ended December 31, 1995 were 57.7% and 56.4% respectively, compared to 56.1% and 55.8% for the same periods in 1994. Selling, general and administrative expenses were $403,271 for the quarter ended December 31, 1995 and $1,090,016 for the six months ended December 31, 1995, as compared to $564,259 and $1,038,138 respectively for the corresponding periods ended December 31, 1994. The decrease for the quarter is the result of the Vermont Supreme Court's ruling in favor of the Company in a wrongful termination suit, reversing a lower court's earlier ruling in favor of the plianiff, in the amount of $175,000 plus interest. The Supreme Court's decision resulted in the Company's reversal of a $215,000 reserve, the majority of which was originally expensed in June, 1994. The effect of the reversal represents $.08 per share in earnings. Total backlog as of December 31, 1995 was $1,486,852, all of which is shipable by June 30, 1996, compared to approximately $4,100,000 ($2,800,000 was to a single customer mentioned above) as of December 31, 1994. Development and engineering expenses for the three months and six months ended December 31, 1995 were $151,866 (6.9% of sales) and $305,960 (6.4% of sales) compared to $142,950 (6.3% of sales) and $256,704 (6.2% of sales), respectively, for the same periods last year. This increase reflects ongoing commitment to advancing the Company's technology and the efforts to bring several new products to the market. Income tax expense is a direct result of the Company's net income or loss before taxes. Net income for the three months and six months ended December 31, 1995 was $223,964 and $419,595, respectively, compared to $191,165 and $333,461, respectively, for the same periods ended December 31, 1994. As of December 31, 1995, the Company's principal available sources of liquidity were, respectively, from operations and a $700,000 bank line of credit, all of which was available as of December 31, 1995. Accounts receivable decreased by $499,428, from $1,640,008 at June 30, 1995 to $1,140,580 at December 31, 1995, a direct result of the increase in efforts to encourage customers to pay within terms. The average aged receivable dropped from 59.9 days for the quarter ended December 31, 1994 to 51.7 days for the quarter ended December 31, 1995 Inventories increased by $78,008, from $1,241,964 at June 30, 1995 to $1,319,968 at December 31, 1995, as a result of increasing levels of business. The Company's capital commitments for fiscal 1996 are expected to be at the same level as fiscal 1995. 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 if Matters to a Vote of Security Holders --------------------------------------------------- A. December 4, 1995 - Annual Meeting of Stockholders B. Election of Directors - all nominees elected C. Proposal to Ratify Election of KPMG Peat Marwick LLP as Independent Certified Public Accountants for the Company's fiscal year ending June 30, 1996. Item 5 - 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 EX-27 2 FDS --
5 IMTEC, Inc., EX-27, FDS for 10-Q, December 31, 1995 0000730045 IMTEC, Inc. 1 US 6-MOS JUN-30-1996 JUL-01-1995 DEC-31-1995 1 351894 300000 1242405 101825 1319968 3387113 3519419 2411866 4870564 1023909 0 14789 0 0 2227102 4870564 4764384 4764384 1746047 2685783 1395976 3000 0 695445 275850 419595 0 0 0 419595 0.27 0.27
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