-----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, WRI8dHxEHI2DlvgrFIroDgNfw+Ewic4p2UPv8kzdHYVV6zwlfsOsxqDFV7UXjKSF IDnn3vhHPsNmAShzdUZckg== 0000730045-96-000011.txt : 19961118 0000730045-96-000011.hdr.sgml : 19961118 ACCESSION NUMBER: 0000730045-96-000011 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961114 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: IMTEC INC CENTRAL INDEX KEY: 0000730045 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-PAPER AND PAPER PRODUCTS [5110] 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: 96663747 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 THE PERIOD ENDED SEPTEMBER 30, 1996 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 September 30, 1996. 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 October 29, 1996: 1,545,088 IMTEC, INC. INDEX Page # Part I Financial Information Condensed Balance Sheets - September 30, 1996 and June 30, 1996 3 - 4 Condensed Statements of Income - Three Months Ended September 30, 1996 and 1995 5 Condensed Statements of Cash Flows Three Months Ended September 30, 1996 and 1995 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 2 Changes in Securities 11 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
September 30, June 30, 1996 1996 . (Unaudited) * ASSETS Current Assets: Cash $ 782,533 $ 806,633 Marketable Securities 54,671 54,671 Accounts and notes receivable: Trade, less allowance for doubtful accounts: September 30, 1996 - $64,500 June 30, 1996 - $93,915 1,165,010 1,281,101 Inventories 1,571,157 1,512,037 Prepaid expenses and deferred charges 102,540 134,650 Income Tax Refundable 87,086 Deferred income tax 96,330 96,330 ----------- ---------- Total Current Assets 3,772,241 3,972,508 ------------ ------------ Plant and equipment 3,965,620 3,569,012 Less: Accumulated depreciation 2,692,203 2,573,562 ------------ ------------ 1,273,417 995,450 ------------ ------------ Other Assets: Deposits 54,667 150,481 Computer software less accumulated amortization of $407,034 in 1996 and $390,229 in 1996, 94,203 109,008 Other intangibles less accumulated amortization of, $466,952 in 1996 and $446,975 in 1996 243,037 211,638 ----------- ----------- 391,907 471,127 ----------- ----------- $ 5,437,565 $ 5,439,085 ========= ========= * 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) September 30, June 30, 1996 1996 . (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 213,174 430,420 Income tax payable 17,542 0 Accrued liabilities Salaries and wages 127,823 176,276 Commissions 204,766 45,899 Other 346,154 417,030 ----------- ------------ Total Current Liabilities 909,459 1,069,625 Long term debt less current installments - - Long term capital lease obligations - - ----------------- ---------------- 909,459 1,069,625 ----------- ---------- Stockholder's equity: Common stock - $.01 par value; authorized 5,000,000 shares, issued and outstanding: 1,545,088 shares September 30, 1996 1,545,088 shares June 30, 1996 15,451 15,451 Additional paid-in capital 2,449,517 2,449,517 Retained Earnings 2,063,138 1,904,492 ----------- ----------- Total Stockholder's Equity 4,528,106 4,369,460 ----------- ----------- $ 5,437,565 $ 5,439,085 ======== ======== * From audited financial statements.
The accompanying notes are an integral part of these condensed financial statements.
IMTEC, INC. CONDENSED STATEMENTS OF INCOME (Unaudited) Three Months Ended September 30, 1996 1995 ---- ---- Net Sales $2,100,143 $2,580,110 Cost of Sales 1,038,799 1,426,444 ----------- ----------- Gross Profit 1,061,344 1,153,666 Selling, general and administrative expenses 667,334 686,739 Research and development expenses 142,674 154,091 ----------- ---------- Operating Profit 251,336 312,836 Other Income (Expenses): Miscellaneous income and other expenses 12,264 11,410 Interest Expense Income (Loss) Before Income Taxes 263,600 324,246 --------- ---------- Income Tax Expense 104,954 128,613 Net Income $ 158,646 $ 195,633 ======= ======= Weighted average number of common shares and common shares equivalents outstanding 1,600,113 1,547,735 Earnings per common share and common share equivalents $ .10 $ .13 ======= =======
The accompanying notes are an integral part of these condensed financial statements.
IMTEC, INC. CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended September 30, 1996 1995 ---- ---- Cash flows from operating activities: Net Earnings $158,646 $195,633 Adjust, to reconcile net earnings to, net cash provided by operating activities: Depreciation & amortization of property plant, equipment and other assets 155,423 122,125 Decrease(inc.) in accounts receivable 116,091 553,277 Decrease(inc.) income tax refundable 87,086 0 Decrease (inc.) in inventory (59,120) (36,408) Decrease (inc.) in prepaid expenses and other assets 127,924 (22,211) Increase (dec.) in accounts payable (217,246) (258,596) Increase (dec.) in income tax payable 17,542 91,619 Increase (dec.) in accrued liabilities 39,538 (190,561) -------- --------- Net cash provided by operating 425,884 454,878 Cash flows from (used in) investment activities: Expenditures for property & equipment, computer software and other intangible assets (449,984) (196,507) -------- --------- Net cash used in invest. activities (449,984) (196,507) Cash flows from (used in) financing activities: Proceeds form issuance of notes Principal notes payable to bank Principal payments on long term debt Principal payments under capital lease obligations Proceeds from issuance of stock 27,501 --------- --------- Net cash provided by finance activities 0 27,501 --------- --------- Net increase (decrease) in cash (24,100) 285,872 Cash at the beginning of period 806,633 285,727 --------- --------- Cash at the end of period $ 782,533 $ 571,599 ========= ========= Supplemental Information Disclosures: Interest paid Income tax paid $ 36,994
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 three month period ended September 30, 1996 are not necessarily indicative of the results to be expected for the full year. 2 - Inventories
Inventories consist of: September 30, June 30, 1996 1996 Finished Products $ 21,175 $ 39,299 Work in Process 128,580 97,310 Purchased Components 1,421,402 1,375,428 ----------- ----------- 1,571,157 1,512,037 ======== ========
Inventory cost consisted of the cost of purchased components and supplies, manufacturing labor and manufacturing overhead. 3 - Liability for Estimated Product Warranty On September 30, 1996 and June 30, 1996, the Company had provided $125,460 and $119,954 respectively, against future product warranties based on its experience with customer claims. Warranty expenses charged to income amounted to approximately $18,405 for the three month period ended September 30, 1996 and $32,812 for the three month period ended September 30, 1995. 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 September 30, 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:
Three months ended September 30, 1996 1995 Common shares 1,545,088 1,475,355 Options 53,857 72,380 Warrants -- -- ---------- ---------- Total for primary calculation 1,598,945 1,547,735 Options 1,167 -- Warrants -- -- ---------- ---------- Total for fully-diluted calculation 1,600,113 1,547,735 ========== ==========
IMTEC, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Three Months Ended September 30, 1996 as compared to Three Months Ended September 30, 1995 Revenues for the three months ended September 30, 1996 decreased approximately 18.6% from the corresponding period in 1995. Revenues from Bar Code labels and printing supplies were $1,502,539 for the quarter ended September 30, 1996 compared to $1,174,939 for the same period last year. Bar Code labels and printing supplies represented 71.5% of total revenue for the three months ended September 30, 1996 compared to 45.5% for the same period last year. Management believes that the upward trend in Bar Code labels and printing supply sales are due to a stronger focus by the sales group and expanded partnering and distribution relationships. Revenues from the sales of Industrial Bar Code Equipment were $597,604 for the three months ended September 30, 1996 compared to $1,405,171 for the same period in 1995. Industrial Bar Code Equipment sales represented 28.5% of total revenue for the three months ended September 30, 1996 compared to 54.5% for the same period last year. . The decrease in bar code equipment sales in the three months ended September 30, 1996, when contrasted with the same period in 1995, is primarily attributable to the completion, in October, 1995, of a contract with a single customer. When this contract is removed from the revenues, the remaining equipment business increased 6.4% from $561,470 for the three months ended September 30, 1995 , to $597,604 for the three months ended September 30, 1996. Management believes that the upward trend in Industrial Bar Code Equipment sales will continue due to expanded partnering and distribution relationships, new product offerings and expanded use of technology. The machine backlog, exclusive of the single customer mentioned above, has increased from $560,560 at September 30, 1995 to $774,246 at September 30, 1996. Cost of sales for the three months ended September 30, 1996 were 49.5%, down from 55.4% for the same period in 1995. This decrease is directly related to the product mix, heavily favoring the media products. As discussed above, Media represented 71.5% of total revenue. Selling, general and administrative expenses were $667,334 for the quarter ended September 30, 1996 as compared to $693,229 for the quarter ended September 30, 1995. This represents a 3.3% decrease in these expenses. Total backlog as of September 30, 1996 was approximately $1,927 ,000, all of which is expected to be shipped by June 30, 1996, compared to approximately $1,425,000 as of September 30, 1995. This increase in backlog of orders is related to the expanded partnering and distribution relationships discussed above.. Development and engineering expenses for the quarter ended September 30, 1996 were $142,674 (6.8% of sales) compared to $154,091 (6.0% of sales) for the same period last year. These expenditures reflect 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 quarter ended September 30, 1996 was $158,646 compared to $195,626 for the quarter ended September 30, 1995. The major reason for this decrease is reduced revenues. As of September 30, 1996, 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 September 30, 1996. Accounts receivable decreased from $1,281,101 at June 30, 1996 to $1,165,010 at September 30, 1996, a direct result of the increase in efforts to encourage customers to pay within terms and lower sales revenues. Inventories increased slightly, from $1,512,037 at June 30, 1996 to $1,571,157 at September 30, 1996. The Company's capital commitments for fiscal 1997 are expected to be approximately 50% above the level of fiscal 1996. This is the result of the Company's commitment to improve the capability and capacity of its label operations. 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 --------------------------------------------------- Not applicable 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, September 30, 1996 0000730045 IMTEC, Inc. 1 US 3-mos Jun-30-1997 Jul-01-1996 Sep-30-1996 1 782533 54671 1229510 64500 1571157 3772241 3965620 2692203 5437565 909459 0 0 0 15451 2449517 5437565 2100143 2100143 579985 1038799 797744 64501 0 251336 104954 158646 0 0 0 158646 0.10 0.10
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