-----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, JQxlf1Oie0LKJebB8WlMiEdWb+O0oaXeqqckS9zh2QEew2D4Q3g8GmUNc12Qph0v F1+hUDrpW7WZdti9rzpn3A== 0000950109-96-002679.txt : 19960506 0000950109-96-002679.hdr.sgml : 19960506 ACCESSION NUMBER: 0000950109-96-002679 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960330 FILED AS OF DATE: 19960503 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: MOORE MEDICAL CORP CENTRAL INDEX KEY: 0000074691 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-DRUGS PROPRIETARIES & DRUGGISTS' SUNDRIES [5122] IRS NUMBER: 221897821 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-08903 FILM NUMBER: 96556170 BUSINESS ADDRESS: STREET 1: PO BOX 1500 STREET 2: 389 JOHN DOWNEY DR CITY: NEW BRITAIN STATE: CT ZIP: 06050 BUSINESS PHONE: 2038263600 MAIL ADDRESS: STREET 1: 389 JOHN DOWNEY DRIVE STREET 2: 389 JOHN DOWNEY DRIVE CITY: NEW BRITAIN STATE: CT ZIP: 06050 FORMER COMPANY: FORMER CONFORMED NAME: OPTEL CORP DATE OF NAME CHANGE: 19850611 10-Q 1 FORM 10-Q FOR PERIOD ENDED 3/30/96 ================================================================================ SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ----------------------- 1996 FORM 10 - Q For the Fiscal FIRST QUARTER Ended March 30, 1996 Quarterly Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934 MOORE MEDICAL CORP. (Exact name of registrant as specified in its charter) - -------------------------------------------------------------------------------- Delaware 1-8903 (State of incorporation) (Commission File Number) P.O. Box 1500, New Britain, CT 06050 22-1897821 (Address of principal executive offices) (I.R.S. Employer Identification Number) 203-826-3600 (Registrant's telephone number) Securities registered pursuant to Section 12(b) of the Act: Common Stock ($.01 Par Value) American Stock Exchange (Title of Each Class) (Name of each exchange on which registered) - -------------------------------------------------------------------------------- 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 twelve months, and (2) has been subject to such filing requirements for the past 90 days. Yes X No ----- ----- 2,901,261 Number of shares of Common Stock outstanding as of May 1, 1996. Total number of pages in the numbered original is 9 This is page 1 of 9 pages. ================================================================================ MOORE MEDICAL CORP. Index Page No. -------- Part I. Financial Information Item I. Financial Statements Balance Sheets at the end of the first quarter of 1996 and at the end of the year 1995.............. 3 Statements of Operations for the first quarters of 1996 and 1995.................................. 4 Statements of Cash Flows for the first quarters of 1996 and 1995.................................. 5 Notes to Financial Statements....................... 6 Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition............. 7-8 Part II. Other Information Item 6. Exhibits and Reports on Form 8-K.................... 9 Signatures................................................... 9
MOORE MEDICAL CORP. Balance Sheets at end of - ------------------------------------------------------------------------------------------------------ Amounts in thousands First Quarter 1996 Year 1995 (Unaudited) - ------------------------------------------------------------------------------------------------------ ASSETS Current Assets Cash $ 77 $ 39 Accounts receivable, less allowances of $879 and $734.......................................... 25,966 22,890 Inventories................................................. 42,408 40,897 Prepaid expenses and other current assets................... 6,709 4,759 Deferred income taxes....................................... 594 619 ------- ------- Total Current Assets.................................. 75,754 69,204 ------- ------- Noncurrent Assets Equipment and leasehold improvements, net.................. 4,708 4,937 Other assets............................................... 1,221 1,222 ------- ------- Total Noncurrent Assets.............................. 5,929 6,159 ------- ------- $81,683 $75,363 ======= ======= LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable........................................... $27,255 $24,699 Accrued expenses........................................... 2,804 2,689 ------- ------- Total Current Liabilities............................ 30,059 27,388 ------- ------- Deferred Income Taxes.......................................... 428 447 Revolving Credit Financing..................................... 24,638 21,672 Shareholders' Equity Preferred stock - no shares outstanding.................... -- -- Common stock - $.01 par value; 5,000 shares authorized; 3,246 shares issued...................................... 32 32 Capital in excess of par value............................. 21,691 21,680 Retained earnings.......................................... 7,907 7,274 ------- ------- 29,630 28,986 Less treasury shares, at cost, 345 and 352 shares................................................... (3,072) (3,130) ------- ------- Total Shareholders' Equity........................... 26,558 25,856 ------- ------- $81,683 $75,363 ======= ======= - ------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements. MOORE MEDICAL CORP.
Statements of Operations for the - -------------------------------------------------------------------------------- Amounts in thousands, except per share data First Quarter ------------------------- 1996 1995 (Unaudited) - -------------------------------------------------------------------------------- Net sales................................... $75,833 $77,778 Cost of products sold....................... 65,236 67,412 ------- ------- Gross profit................................ 10,597 10,366 Selling, general & administrative expenses.. 9,158 9,053 ------- ------- Operating income............................ 1,439 1,313 Interest expense, net....................... 466 536 ------- ------- Income before income taxes.................. 973 777 Income tax provision........................ 340 292 ------- ------- Net income.................................. $ 633 $ 485 ======= ======= Net income per share........................ $ .22 $ .17 ======= =======
- -------------------------------------------------------------------------------- The accompanying notes are an integral part of the financial statements. MOORE MEDICAL CORP.
Statements of Cash Flows for the - -------------------------------------------------------------------------------- Amounts in thousands First Quarter ------------------------- 1996 1995 (Unaudited) - -------------------------------------------------------------------------------- Cash Flows From Operating Activities Net income.................................. $ 633 $ 485 Adjustments to reconcile net income to net cash flows provided by operating activities Depreciation and amortization.............. 448 449 Deferred income taxes...................... 6 160 Other...................................... -- 356 Changes in operating assets and liabilities Accounts receivable........................ (3,076) (3,396) Inventories................................ (1,511) (3,690) Other current assets....................... (1,950) (1,833) Accounts payable........................... 2,556 8,141 Other current liabilities.................. 163 (1,179) ------- ------- Net cash flows used in operating activities............................... (2,731) (507) ------- ------- Cash Flows From Investing Activities Equipment & leasehold improvements acquired. (218) (1,337) --------- -------- Net cash flows used in investing activities............................. (218) (1,337) --------- -------- Cash Flows From Financing Activities Revolving credit financing increase, net.... 2,966 1,809 Other, net.................................. 21 29 Net cash flows provided by financing --------- -------- activities............................. 2,987 1,838 --------- -------- Increase (decrease) in cash..................... 38 (6) Cash at beginning of period..................... 39 59 --------- -------- Cash at end of period........................... $ 77 $ 53 ========= ========
- -------------------------------------------------------------------------------- The accompanying notes are an integral part of the financial statements. MOORE MEDICAL CORP. NOTES TO FINANCIAL STATEMENTS Note 1 - Basis of Presentation of Financial Statements The accompanying financial statements should be read in conjunction with the Notes to Financial Statements and Management's Discussion and Analysis of Results of Operations and Financial Condition included in the Company's 1995 Annual Report filed on Form 10-K and in this Form 10-Q Report. In the opinion of management, all adjustments necessary for a fair presentation of the results for the interim periods have been made. The results of operations for the first quarter are not necessarily indicative of the results to be expected for the full year. The fiscal quarters ended March 30, 1996 and April 1, 1995. Certain prior year amounts have been reclassified to conform with the current year presentation. Note 2 - Net Income Per Share Net income per share of common stock is based on the weighted average number of common shares outstanding, adjusted for dilutive common stock options. (2,909,000 shares and 2,888,000 shares in the first quarters of 1996 and 1995, respectively.) MOORE MEDICAL CORP. MANAGEMENT'S DISCUSSION AND ANALYSIS OVERVIEW - -------- The following table sets forth items included in the Statements of Operations as a percentage of sales for the first quarters of 1996 and 1995. The table also shows, for each line item, the percentage change in the 1996 period from the comparable 1995 period.
First Quarter -------------------------------- % of Sales % Change --------------- ---------- 1996 1995 ---- ---- Net sales............................... 100.0% 100.0% (3)% Cost of products sold................... 86.0 86.7 (3) ----- ----- Gross profit............................ 14.0 13.3 2 Selling, general & administrative expenses............................... 12.1 11.6 1 ----- ----- Operating income........................ 1.9 1.7 10 Interest expense, net................... .6 .7 (13) ----- ----- Income before income taxes.............. 1.3 1.0 25 Income tax provision.................... .5 .4 -- ----- ----- Net income.............................. .8% .6% 31% ===== =====
RESULTS OF OPERATIONS - --------------------- First Quarter 1996 Compared with 1995 - ----------------------- Net sales of $75.8 million for the first quarter of 1996 decreased 3% from the same quarter of 1995. Sales of pharmaceuticals, comprising brand-name and generic products, decreased due to competitive pressures in the Company's wholesale markets, particularly in the independent pharmacy market. Sales of medical/surgical supplies increased during the 1996 quarter from the comparable 1995 quarter. Growth in sales to the Company's health-care practitioner customers accounted for most of the sales increase in medical/surgical supplies. For the 1996 quarter, the gross margin rate of 14.0% was higher than the 13.3% in the same quarter a year earlier. Gross profit dollars increased 2% to $10.6 million. These improvements resulted primarily from the change in sales mix toward medical/surgical supplies, which have higher gross margin rates than pharmaceuticals. Selling, general and administrative expenses in the first quarter of 1996 increased slightly from the same quarter of 1995. In the first quarter of 1995, the Company incurred $330,000 ($.07 per share after taxes) for pre-opening start-up costs in connection with a new distribution center. After eliminating these costs from the 1995 quarter for comparability, the 1996 selling, general and administrative expenses increased approximately 5%. Most of this increase was for costs in support of the growing sales of medical/surgical supplies to health-care practitioners. Interest expense decreased 13% in the 1996 quarter, primarily due to lower interest rates on a new revolving line of credit financing agreement which the Company entered into in January 1996. Net income increased 31% for the first quarter of 1996. The increase in net income was most directly attributable to the one-time expenses in the 1995 quarter associated with starting up a new distribution center. FINANCIAL CONDITION - ------------------- During the first quarter of 1996, the Company borrowed $2.9 million to fund $2.7 million of net cash uses for operations and $0.2 million of equipment purchases. Accounts receivable increased $3.1 million due to higher sales in the first quarter than for the fourth quarter of 1995; inventory increased $1.5 million; and net increases in prepaid/accrued expenses and other current assets were $1.8 million. Somewhat offsetting these uses of cash were an increase of $2.6 million in accounts payable, net income of $0.6 million and non-cash items included in net income of $0.5 million. In January, 1996, the Company entered into a new revolving line of credit financing agreement with a bank. This $45 million secured line of credit extends through December 31, 1998. The facility provides for funding limited by a formula using accounts receivable balances and inventory levels as the primary variables. Interest on loans is charged at the prime rate or, at the option of the Company, at the Eurodollar rate plus a rate in a range of 1% to 2% depending on the financial leverage of the Company. In addition the Company pays a 1/4% commitment fee on the unused line of credit. Substantially all assets of the Company have been pledged as collateral and the agreement contains covenants and restrictions relating to asset protection, financial condition, dividends, investments, acquisitions and certain other matters. Under the prior financing facility that was in effect for 1995, interest on loans was charged at the prime rate plus a 1/4% premium or, at the option of the Company, at LIBOR plus 2 1/2%. Management believes that the funding needs of the Company will continue to be met through income from operations, working capital management and financing under it's line of credit. PART II. OTHER INFORMATION ----------------- Item 6. Exhibits and Reports on Form 8-K -------------------------------- (a) Exhibits -------- None. (b) Reports on Form 8-K ------------------- The Registrant filed on Form 8-K a new Revolving Credit Agreement between Bank of Boston Connecticut and the Company and a Security Agreement between Bank of Boston Connecticut and the Company which where dated January 9, 1996. 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. MOORE MEDICAL CORP. (REGISTRANT) By: /s/ John A. Murray By: /s/ Victor H. Emerson, Jr. -------------------- ---------------------------- John A. Murray Victor H. Emerson, Jr. Vice President - Finance and Controller and Chief Chief Financial Officer Accounting Officer May 3, 1996 May 3, 1996 EX-27 2 FINANCIAL DATA SCHEDULE
5 1,000 3-MOS 12-MOS DEC-28-1996 DEC-30-1995 DEC-31-1995 JAN-01-1995 MAR-30-1996 DEC-30-1995 77 39 0 0 26,845 23,624 879 734 42,408 40,897 7,303 5,378 14,108 13,942 9,400 9,005 81,683 75,363 30,059 27,388 0 0 0 0 0 0 32 32 26,526 25,824 81,683 75,363 75,833 289,062 75,833 289,062 65,236 247,556 65,236 247,556 9,158 35,410 0 0 466 2,609 973 3,487 340 1,168 633 2,319 0 0 0 0 0 0 633 2,319 0.22 0.80 0.22 0.80
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