-----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, Sw2XmhYJFeQy7E4sdM6ig8WdNh6pjKZSiAgkP6Hwp45kzBH2fMGGVKtle7ugI9uJ pfFSz+mz6u8yjnuUX/KW3w== 0000825411-98-000001.txt : 19980210 0000825411-98-000001.hdr.sgml : 19980210 ACCESSION NUMBER: 0000825411-98-000001 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971227 FILED AS OF DATE: 19980209 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: TECH OPS SEVCON INC CENTRAL INDEX KEY: 0000825411 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRICAL INDUSTRIAL APPARATUS [3620] IRS NUMBER: 042985631 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-09789 FILM NUMBER: 98525439 BUSINESS ADDRESS: STREET 1: ONE BEACON ST CITY: BOSTON STATE: MA ZIP: 02108 BUSINESS PHONE: 6175232030 MAIL ADDRESS: STREET 2: 1 BEACON ST CITY: BOSTON STATE: MA ZIP: 02108 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 December 27, 1997 ----------------- / / 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 1-9789 ------ TECH/OPS SEVCON, INC. ------------------------------------------------------ (Exact name of registrant as specified in its charter) Delaware 04-2985631 - ------------------------------- -------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) One Beacon Street, Boston, Massachusetts, 02108 ---------------------------------------------------- (Address of principal executive offices and zip code) (617) 523-2030 --------------------------------------------------- (Registrant's telephone number, including area code:) 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 X No --- --- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Class Outstanding at February 3, 1998 - ----------------------------- ------------------------------- Common stock, par value $.10 3,093,630 1 TECH/OPS SEVCON, INC. PART I. FINANCIAL INFORMATION Item 1. Financial Statements Consolidated Balance Sheets ASSETS
Dec 27, Sept 30, 1997 1997 --------- ------------ (unaudited) (derived from audited statements) Current assets: Cash and cash equivalents $ 1,943,000 $ 2,361,000 Accounts receivable, less allowances of $167,000 at 12/27/97 and $158,000 at 9/30/97 6,264,000 5,637,000 Inventories: Raw materials 2,262,000 1,532,000 Work-in-process 627,000 903,000 Finished goods 910,000 691,000 --------- --------- 3,799,000 3,126,000 --------- --------- Total current assets 12,006,000 11,124,000 --------- ---------- Property, plant and equipment, at cost 6,169,000 5,869,000 Less: Accumulated depreciation and amortization 3,458,000 3,249,000 --------- --------- Net property, plant and equipment 2,711,000 2,620,000 --------- --------- Cost of purchased businesses in excess of net assets acquired 1,435,000 1,435,000 Other assets - 6,000 ---------- ---------- $16,152,000 $15,185,000 ========== ==========
The accompanying notes are an integral part of these financial statements. 2 TECH/OPS SEVCON, INC. Consolidated Balance Sheets LIABILITIES AND STOCKHOLDERS' INVESTMENT (CAPTION> Dec 27, Sept 30, 1997 1997 -------- ------------ (unaudited) (derived from audited statements) Current liabilities: Current portion of long-term debt $ 248,000 $ 235,000 Accounts payable 2,662,000 1,770,000 Dividend payable 464,000 463,000 Accrued expenses 2,529,000 2,694,000 Accrued taxes on income 496,000 482,000 --------- --------- Total current liabilities 6,399,000 5,644,000 --------- --------- Long-term debt, less current portion 223,000 278,000 Deferred taxes on income 163,000 156,000 --------- --------- Stockholders' investment (Note 2) Preferred stock - - Common stock 310,000 310,000 Treasury stock, at cost ( 81,000) ( 85,000) Premium paid in on common stock 3,729,000 3,730,000 Retained earnings 5,919,000 5,786,000 Cumulative translation adjustment (510,000) (634,000) ---------- ---------- Total stockholders' investment $ 9,367,000 $ 9,107,000 ---------- ---------- $16,152,000 $15,185,000 ========== ==========
The accompanying notes are an integral part of these financial statements. 3 TECH/OPS SEVCON, INC. Consolidated Statement of Income (Unaudited)
Three Months Ended --------------------- Dec 27, Dec 28, 1997 1996 -------- -------- Net sales $ 7,049,000 $ 6,197,000 Costs and expenses: Cost of sales 4,262,000 3,887,000 Selling, general and administrative 1,828,000 1,572,000 --------- --------- 6,090,000 5,459,000 --------- --------- Operating income 959,000 738,000 Other income (expense), net ( 21,000) ( 21,000) -------- ------- Income before income taxes 938,000 717,000 Income taxes 333,000 252,000 ------- ------- Net income $ 605,000 $ 465,000 ======= ======= Basic income per share $ .20 $ .15 === === Diluted income per share $ .19 $ .15 === ===
The accompanying notes are an integral part of these financial statements. 4 TECH/OPS SEVCON, INC. Consolidated Statement of Cash Flows (Unaudited)
Three Months Ended --------------------- Dec 28, Dec 31, 1997 1996 -------- -------- Net cash flow from operating activities: Net income $ 605,000 $ 465,000 Adjustments to reconcile net income to net cash from operating activities: Depreciation and amortization 117,000 121,000 Deferred tax provision 7,000 18,000 Increase (decrease) in cash resulting from changes in operating assets & liabilities: Receivables (627,000) 38,000 Inventories (673,000) (321,000) Accounts payable 892,000 151,000 Accrued compensation and expenses (200,000) 43,000 Accrued and deferred taxes on income 49,000 23,000 -------- ------- Net cash generated from operating activities 176,000 538,000 Cash flow used by investing activities: Acquisition of property, plant, and equipment, net (126,000) (1,265,000) Cash flow from (used by) financing activities: Long-term debt incurred on purchase of building - 708,000 Payment of long-term debt ( 42,000) - Exercise of stock options 5,000 - Purchase of common stock ( 9,000) - Dividends paid (464,000) (463,000) -------- ------- Net cash used by financing activities (510,000) 245,000 Effect of exchange rate changes on cash 42,000 116,000 ------- -------- Net increase (decrease) in cash (418,000) (366,000) Opening balance - cash and cash equivalents 2,361,000 2,886,000 --------- --------- Ending balance - cash and cash equivalents $1,943,000 $2,520,000 ========= ========= Supplemental disclosure of cash flow information Cash paid for income taxes $ 325,000 $ 110,000 Cash paid for interest 14,000 10,000 ------- ------- Supplemental disclosure of non-cash financing activity: Dividend declared $ 464,000 $ 463,000 ======= =======
The accompanying notes are an integral part of these financial statements. 5 TECH/OPS SEVCON, INC. Notes to Consolidated Financial Statements - December 27, 1997 (Unaudited) (1) Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of only normally recurring accruals) necessary to present fairly the financial position of Tech/Ops Sevcon as of December 27, 1997 and the results of operations and cash flows for the three months ended December 27, 1997 and December 28, 1996. The accounting policies followed by Tech/Ops Sevcon are set forth in Note 1 to the financial statements in the 1997 Tech/Ops Sevcon, Inc. Annual Report filed on Form 10-K. The results of operations for the three-month periods ended December 27, 1997 and December 28, 1996 are not necessarily indicative of the results to be expected for the full year. (2) Cash Dividends On December 11, 1997, the Company declared a quarterly dividend of $.15 per share for the first quarter of fiscal 1998, which was paid on January 8, 1998 to stockholders of record on December 26, 1997. The Company has paid regular quarterly cash dividends since the first quarter of fiscal 1990. 6 TECH/OPS SEVCON, INC. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Results of Operations Three months ended December 27, 1997 Sales in the first fiscal quarter ended December 27, 1997 were $7,049,000, compared to $6,197,000 in the same quarter of the previous year, an increase of $852,000, or 14%. All operations reported revenue increases compared to the same period last year. Revenues in the US increased by 15%, mainly due to increased demand in the fork lift truck market. Sales in foreign markets increased by 12%. Despite the recent economic problems in Far Eastern markets, sales to customers headquartered in the Far East were $200,000 higher than last year. Gross profit was 39.5% of sales compared to 37.3% in the first quarter of fiscal 1997. Gross profit was $477,000 higher than last year. The increase in gross profit was mainly attributable to higher volumes, lower warranty costs and favorable sales mix. Operating expenses for the quarter were $256,000, or 16% higher than 1997. Operating income was $959,000, an increase of $221,000, or 30%, compared to the first quarter of last year. The principal reason for the increase in operating income was higher volumes. Income before income taxes was $938,000, compared to $717,000 last year, an increase of $221,000, or 31%. Income taxes were 35% of pre-tax income, in line with last year. Primarily due to higher sales, net income increased by $140,000, or 33%, to $605,000. Basic income per share was $.20 compared to $.15 in the first quarter of fiscal 1997. Financial Condition The Company has, since January 1990, maintained a program of regular cash dividends, which, for the most recent quarter, amounted to $464,000. Tech/Ops Sevcon's resources, in the opinion of management, are adequate for projected operations and capital spending programs, as well as continuation of the cash dividend. 7 TECH/OPS SEVCON, INC. PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (a) Exhibits filed with this report. (11) Calculation of earnings per share (27) Financial Data Schedule (EDGAR Filing only) (b) Reports on Form 8-K - There were no reports on Form 8-K during the quarter for which this report is filed. 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. TECH/OPS SEVCON, INC. Date: February 8, 1998 By: /s/ Paul A. McPartlin --------------------- Paul A. McPartlin Vice President Finance Principal Financial Officer 8 EXHIBIT 11 TECH/OPS SEVCON, INC. Calculation of Earnings Per Share and Weighted Average Shares Outstanding
Quarter ended 12/27/97 ---------------------- Per Share Income Shares Amount ------ ------ --------- Net income $ 605,000 Basic income per share 3,093,000 $ .20 Options outstanding - common stock equivalents 45,000 ------- --------- --- Diluted income per share $ 605,000 3,138,000 $ .19 ======= ========= === Quarter ended 12/28/96 ---------------------- Per Share Income Shares Amount ------ ------ --------- Net income $ 465,000 Basic income per share 3,090,000 $ .15 Options outstanding - common stock equivalents 50,000 ------- --------- --- Diluted income per share $ 465,000 3,140,000 $ .15 ======= ========= ===
9 EX-27 2
5 1000 3-MOS SEP-30-1998 DEC-27-1997 1,943 0 6,431 (167) 3,799 12,006 6,169 (3,458) 16,152 6,399 0 0 0 310 9,057 16,152 7,049 7,049 4,262 4,262 1,828 0 14 938 (333) 605 0 0 0 605 .20 .19
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