-----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, L2vSO6tVcYwSXfkXDsyX6hJLr40ZcUJgLIoBtU4hS5+qHUu4gs3ksaIY5sWEXoge iQq+di8BTo2S8y5tP1A4jg== 0000825411-06-000021.txt : 20061211 0000825411-06-000021.hdr.sgml : 20061211 20061211142357 ACCESSION NUMBER: 0000825411-06-000021 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060930 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20061211 DATE AS OF CHANGE: 20061211 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: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09789 FILM NUMBER: 061268006 BUSINESS ADDRESS: STREET 1: 155 NORTHBORO ROAD CITY: SOUTHBOROUGH STATE: MA ZIP: 01772 BUSINESS PHONE: 5082815510 MAIL ADDRESS: STREET 1: 155 NORTHBORO ROAD CITY: SOUTHBOROUGH STATE: MA ZIP: 01772 8-K 1 b.txt 8K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 December 5, 2006 ----------------------------------------------- Date of Report (date of earliest event reported) TECH/OPS SEVCON, INC. ------------------------------------------------------ (Exact name of registrant as specified in its charter) Delaware 1-9789 04-2985631 - ------------------------------- ------------ -------------- (State or other jurisdiction of Commission (I.R.S. Employer incorporation or organization) File Number Identification No.) 155 Northboro Road Southborough, MA 01772 ------------------------------------------------------ (Address of principal executive offices and zip code) (508) 281-5510 --------------------------------------------------- (Registrant's telephone number, including area code:) ------------------------------------------------------ (Former Name or Former Address, if Changed Since Last Report) Item 2.02. Results of Operations and Financial Condition. On December 5, 2006, the Registrant issued a press release announcing earnings for the fiscal quarter ended September 30, 2006. A copy of such press release is attached hereto as Exhibit 99.1 and is incorporated by reference herein in its entirety. Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. (e) Compensation Arrangements with Named Executive Officers On December 10, 2006, the Compensation Committee of the Board of Directors of Tech/Ops Sevcon, Inc. fixed the annual salary of Matthew Boyle, President and Chief Executive Officer, for 2007 at GBP 142,800 and awarded him an annual bonus for 2006 of GBP 50,636. The Committee also fixed the annual salary of Paul McPartlin, Vice President, Chief Financial Officer and Treasurer of the Company, at GBP 93,500 and awarded him an annual bonus for 2006 of GBP 23,906. Item 9.01. Financial Statements and Exhibits. (c) Exhibit 99.1 Press release issued by the registrant on December 5, 2006 is furnished herewith. 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. Tech/Ops Sevcon, Inc., Registrant December 11, 2006 /s/ Raymond J. Thibault Jr. Raymond J. Thibault Jr. Assistant Treasurer BOS111 12103339.2 EX-99 2 c.txt DECEMBER 5TH NEWS RELEASE Tech/Ops Sevcon Inc. 155 Northboro Road Southborough, MA 01772 Telephone (508) 281 5510 News Release For release: Immediately For further information contact: Paul McPartlin TECH/OPS SEVCON REPORTS IMPROVED ANNUAL AND FOURTH QUARTER RESULTS AND ANNOUNCES QUARTERLY CASH DIVIDEND Southborough, Mass. December 5, 2006. Tech/Ops Sevcon, Inc. (AMEX symbol TO) reported that net income for the year ended September 30, 2006 was $1,114,000, or $.35 per diluted share. In fiscal 2005 the Company had net income of $641,000, or $.20 per diluted share. Revenues for fiscal 2006 were $34,630,000, an increase of $2,955,000, or 9%, compared to the prior year's $31,675,000. Foreign currency fluctuations accounted for a decrease of $500,000 in reported sales. Excluding the foreign currency impact, volumes were 11% higher than last year. This was mainly due to improved conditions in the aerial lift and other markets served by the controls business segment. Operating income for fiscal 2006 of $1,844,000 was 85% higher than the $999,000 recorded in fiscal 2005. Higher volumes were the main reason for the improvement in operating income. Fourth quarter sales were $8,934,000, an increase of $1,348,000 or 18%, compared to the prior year's $7,586,000. Foreign currency fluctuations resulted in an increase in reported sales of $280,000, or 4%. Most markets served by the Company were up in the fourth quarter of fiscal 2006 compared to the prior year. Operating income for the fourth quarter was $454,000 compared to $313,000 for the same quarter last year, an increase of $141,000, or 45%. The increase in operating income was mainly due to increased volumes, partially offset by higher operating expense. There was a currency loss in the fourth quarter of fiscal 2006 of $41,000 compared to a gain of $24,000 in the fourth quarter of last year. There was net income of $243,000 for the fourth quarter of fiscal 2006 compared to $233,000 for the same quarter last year. The net income per diluted share was $.08 in the fourth quarter of fiscal 2006 compared to $.07 per share for the same quarter last year. In September 2006 the Financial Accounting Standards Board issued Statement No. 158 which changes employers'accounting for defined benefit pension and other postretirement plans. The new Standard requires annual measurement and recognition of an asset or liability reflecting the funded status of such plans, with current year changes in that funded status recognized through cumulative other comprehensive income. Although the Company was not obliged to adopt this Standard until fiscal 2007 the Company decided to adopt it as of September 30, 2006. This has resulted in a charge to cumulative other comprehensive income, a component of stockholder equity, of $1,923,000, net of tax, the recording of a long term liability for pension benefits of $2,886,000 and a long-term deferred tax asset of $920,000. Adoption of this Standard did not impact the income statement. The Board of Directors today declared a quarterly cash dividend of $.03 per share for the first quarter of fiscal 2007. The dividend will be paid on January 4, 2007 to stockholders of record on December 20, 2006. Tech/Ops Sevcon, Inc. is a world leader in the design, manufacture and marketing of microprocessor based controls for electric vehicles. The controls are used to vary the speed and movement of vehicles, to integrate specialized functions, and to prolong the shift life of the vehicles' batteries. Sevcon supplies customers throughout the world from its operations in the United Kingdom, the USA, France, the Far East, and through an international dealer network. The Company's customers are manufacturers of fork lift trucks, aerial lifts, mining vehicles, airport tractors, sweepers, and other battery powered vehicles. Financial Highlights 2006 (in thousands except per share data) Three months ended Twelve months ended ------------------ ------------------- Sept 30 Sept 30 Sept 30 Sept 30 2006 2005 2006 2005 ------ ------ ------- ------- Net sales $8,934 $7,586 $34,630 $31,675 ------ ------ ------- ------- Operating income 454 313 1,844 999 Income before income taxes 399 323 1,734 951 Net income $ 243 $ 233 $ 1,114 $ 641 ------ ------ ------- ------- Basic income per share $ .08 $ .07 $ .35 $ .21 ------ ------ ------- ------- Diluted income per share $ .08 $ .07 $ .35 $ .20 ------ ------ ------- ------- Cash dividend per share $ .03 $ .03 $ .12 $ .12 ------ ------ ------- ------- Average shares outstanding 3,146 3,125 3,139 3,125 ------ ------ ------- ------- Summarized Balance Sheet Data (in thousands of dollars) September 30, September 30, 2006 2005 -------------- ------------- Cash and cash equivalents and short-term investments $ 1,290 $ 1,130 Receivables 6,187 6,193 Inventories 4,717 3,737 Prepaid expenses and other current assets 847 915 -------------- ------------- Total current assets 13,041 11,975 Long-term assets 5,650 4,471 -------------- ------------- Total assets $ 18,691 $ 16,446 -------------- ------------- Current liabilities $ 5,673 $ 5,824 Liability for pension benefits 2,886 - Deferred taxes and other long-term liabilities 95 33 Stockholders' equity $ 10,037 $ 10,589 -------------- ------------- Total liabilities and stockholders' investment $ 18,691 $ 16,446 -------------- ------------- -----END PRIVACY-ENHANCED MESSAGE-----