-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, qxH9xe2arFpyNycIpvJeFujHxU8n5Wts81fMxRxTm5I3Nv1WB14phOSwbWBWV9uC MicDofM/s4DO7vJ4XRlq/w== 0000898431-95-000032.txt : 19950530 0000898431-95-000032.hdr.sgml : 19950530 ACCESSION NUMBER: 0000898431-95-000032 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950512 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERICAN LOCKER GROUP INC CENTRAL INDEX KEY: 0000008855 STANDARD INDUSTRIAL CLASSIFICATION: 2540 IRS NUMBER: 160338330 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-00439 FILM NUMBER: 95537190 BUSINESS ADDRESS: STREET 1: 15 W SECOND ST CITY: JAMESTOWN STATE: NY ZIP: 14701 BUSINESS PHONE: 7166649600 MAIL ADDRESS: STREET 1: 15 WEST SECOND STREET CITY: JAMESTOWN STATE: NY ZIP: 14701 FORMER COMPANY: FORMER CONFORMED NAME: AVM CORP DATE OF NAME CHANGE: 19850520 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB (Mark One) (X) QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1995 OR ( ) TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT FOR THE TRANSITION PERIOD FROM __________ TO __________ Commission file number 0-439 American Locker Group Incorporated _______________________________________________________________ (Exact name of small business issuer as specified in its charter) Delaware 16-0338330 ____________________________ _______________________________ (State of other jurisdiction (I.R.S. Employer Identification of incorporation or Number) organization) 15 West Second Street, Jamestown, New York 14701 ________________________________________________________________ (Address of principal executive offices) (Zip Code) (716) 664-9600 ________________________________________________________________ (Registrant's telephone number, including area code) __________________________________________________________________________ (Former name, former address and former fiscal year, if changed since last report) Check whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act during the past 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 ___ APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS: Check whether the registrant filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. Yes ___ No ___ Not Applicable APPLICABLE ONLY TO CORPORATE ISSUERS: State the number of shares outstanding of each of the issuer's class of common stock equity as of the latest practicable date: MAY 1, 1995 Common Stock $1.00 par value - 858,876 Transitional Small Business Disclosure (check one) Yes ___ No X PART I - FINANCIAL INFORMATION ITEM 1 - FINANCIAL STATEMENTS STATEMENTS OF CONSOLIDATED FINANCIAL CONDITION AMERICAN LOCKER GROUP INCORPORATED AND SUBSIDIARIES March 31, December 31, 1995 1994 ___________ ____________ ASSETS CURRENT ASSETS Cash and cash equivalents $ 388,739 $ 315,685 Accounts receivable, less allowance for doubtful accounts (1995 $75,967; 1994 $65,900) 2,818,886 4,070,723 Inventories 2,991,402 2,105,537 Notes receivable 116,173 128,779 Prepaid expenses 184,149 187,001 Deferred income taxes 502,075 502,047 ___________ ___________ TOTAL CURRENT ASSETS 7,001,424 7,309,772 PROPERTY, PLANT AND EQUIPMENT Land 500 500 Buildings 493,636 489,986 Machinery and equipment 6,453,715 6,365,812 ___________ ___________ 6,947,851 6,856,298 Less allowances for depreciation and amortization 6,032,267 5,941,203 ___________ ___________ 915,584 915,095 ___________ ___________ TOTAL NON-CURRENT ASSETS 915,584 915,095 ___________ ___________ TOTAL ASSETS $ 7,917,008 $ 8,224,867 =========== =========== - 2 - STATEMENTS OF CONSOLIDATED FINANCIAL CONDITION AMERICAN LOCKER GROUP INCORPORATED AND SUBSIDIARIES March 31, December 31, 1995 1994 ___________ _____________ LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Demand note payable $ 0 $ 1,200,000 Accounts payable and accrued expenses: Trade 786,848 865,244 Related party 460,382 610,922 ___________ ___________ 1,247,230 1,476,166 Commissions, salaries, wages and taxes thereon 208,817 246,547 Other accrued expenses 644,260 480,868 Federal and State income taxes payable 495,616 21,246 Current potion of long-term obligations 600,000 600,000 ___________ ___________ TOTAL CURRENT LIABILITIES 3,195,923 4,024,827 DEFERRED INCOME TAXES 3,364 3,337 LONG-TERM OBLIGATIONS Long term debt, less current portion 750,000 900,000 Deferred pension income 174,542 174,542 Postretirement benefits 116,510 116,510 ___________ ___________ 1,041,052 1,191,052 ___________ ___________ TOTAL NON-CURRENT LIABILITIES 1,004,416 1,194,389 ___________ ____________ TOTAL LIABILITIES 4,240,339 5,219,216 STOCKHOLDERS' EQUITY Common stock, par value $1 per share--authorized 4,000,000 shares, issued 858,876 shares 858,876 858,876 Other capital 1,571,970 1,571,970 Retained earnings 1,376,546 709,782 Foreign exchange (130,723) (134,977) ___________ ____________ TOTAL STOCKHOLDERS' EQUITY 3,676,669 3,005,651 ___________ ____________ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 7,917,008 $ 8,224,867 =========== =========== - 3 - STATEMENTS OF CONSOLIDATED OPERATIONS AMERICAN LOCKER GROUP INCORPORATED AND SUBSIDIARIES Three Months Ended March 31, 1995 1994 ______________ ____________ Net sales $ 7,080,084 3,473,596 Cost of products sold 4,702,320 2,449,667 ______________ ____________ 2,377,764 1,023,929 Selling, administrative and general expenses 1,197,698 1,157,188 ______________ ____________ 1,180,066 (133,259) Interest and dividend income 17,133 4,814 Other income--net 77,639 55,461 Interest expense (59,672) (26,609) ______________ ____________ INCOME (LOSS) BEFORE INCOME TAXES 1,215,166 (99,593) Income taxes (credits) 548,401 (38,980) ______________ ____________ NET INCOME (LOSS) $ 666,765 $ (60,613) ============== ============ NET INCOME (LOSS) PER SHARE OF COMMON SHARE $ 0.78 $ (0.07) ============== ============ - 4 - STATEMENTS OF CONSOLIDATED CASH FLOWS AMERICAN LOCKER GROUP INCORPORATED AND SUBSIDIARIES Three Months Ended March 31, 1995 1994 ______________ ____________ Cash flows from operating activities: Net income (loss) from operations $666,765 ($60,613) Adjustments to reconcile net income (loss) from operations to net cash provided by (used in) operating activities: Depreciation and amortization 91,063 154,177 (gain) on disposition of property, plant and equipment 0 (12,468) Change in assets and liabilities: Accounts receivable 1,251,837 (257,309) Inventories (885,865) (7,466) Notes receivable 12,606 125,080 Prepaid expenses 2,852 (33,059) Accounts payable and accrued expenses (103,274) (40,390) Income taxes 474,370 (52,046) ___________ ___________ NET CASH USED IN OPERATING ACTIVITIES 1,510,354 (184,094) Cash flows from investment activities: Purchase of property, plant and equipment (91,553) (44,701) Proceeds from sale of property, plant and equipment 0 16,625 ___________ ___________ NET CASH USED IN INVESTING ACTIVITIES (91,553) (28,076) Cash flows from financing activities: Net (payments) borrowings under line of credit (1,200,000) 550,000 Debt repayments (150,000) (150,000) Common stock purchase and retired 0 (29,425) ___________ ___________ NET CASH PROVIDED BY FINANCING ACTIVITIES (1,350,000) 370,575 ___________ ___________ Effect of exchange rate changes on cash 4,254 (16,312) ___________ ___________ Net increase in cash 68,801 158,405 - 5 - Cash and cash equivalents at beginning of year 315,684 317,625 ___________ ___________ CASH AND CASH EQUIVALENTS AT END OF PERIOD $388,739 $459,718 =========== =========== Supplemental cash flow information: Interest $59,672 $26,609 =========== =========== Income Taxes $73,000 $57,375 =========== =========== The notes are an integral part of the consolidated financial statements. - 6 - NOTES TO CONSOLIDATED FINANCIAL INFORMATION AMERICAN LOCKER GROUP INCORPORATED AND SUBSIDIARIES 1. The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with instructions to Form 10-QSB and, in the opinion of the Company, include all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation of such condensed financial statements. The condensed financial statements do not include all information and footnotes normally associated with statements of results of operation, financial condition, and cash flows prepared in conformity with generally accepted accounting principles. 2. Provision for income taxes is based upon the estimated annual effective tax rate. 3. Net income (loss) per common share is computed by dividing net loss by the weighted average number of shares outstanding, plus, when dilutive, the common stock equivalents which would arise from the exercise of stock options, during the period (858,876 at March 31, 1995 and 868,673 at March 31, 1994). 4. Inventories are valued at the lower of cost or market. Cost is determined by using the last-in, first-out method for substantially all of the inventories. March 31, December 31, 1995 1994 ____________ ____________ Continuing Operations Raw materials $ 1,129,601 $ 1,104,489 Work-in-process 1,245,910 1,266,263 Finished goods 1,558,293 677,187 ____________ ____________ $ 3,933,804 $ 3,047,939 Less allowance to reduce carrying value to LIFO basis 942,402 942,402 ____________ ____________ Net Inventories $ 2,991,402 $ 2,105,537 ============ ============ - 7 - AMERICAN LOCKER GROUP INCORPORATED AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS LIQUIDITY AND SOURCES OF CAPITAL ________________________________ The Company continues to have adequate resources and liquidity to maintain its operations. Working capital at March 31, 1995 was $3,805,000 up $520,000 from working capital of $3,285,000 at December 31, 1994. The ratio of current assets to current liabilities was 2.2 to 1 at March 31, 1995, compared to 1.8 to 1, at December 31, 1994. The increased working capital resulted primarily from the first quarter's profitable operations. Cash provided from operations was $1,510,000 during the first three months of 1995, compared to cash used in operating activities of $184,000 for the same period in 1994. The significant improvement in cash provided by operating activities is a result of profitable operations in the first quarter of 1995 and the realization of December 31, 1994 accounts receivable relating to significant shipments made to the United States Postal Service (USPS) in late 1994. Cash generated from operations was used principally to pay off borrowings under the Company's line of credit. The Company's $3,000,000 line of credit is available to assist in satisfying future working capital needs, if required. The Company anticipates that its requirements for funds for operations and capital expenditures will be provided principally from cash generated from future operations. FIRST THREE MONTHS 1995 VS. FIRST THREE MONTHS 1994 ___________________________________________________ Sales for the first quarter of 1995 of $7,080,000 were up $3,606,000 (104%) compared to first quarter sales of $3,474,000 in 1994. Plastic locker sales in the first quarter were $4,541,000, compared to $1,187,000, during the same period in 1994. The increased plastic locker sales relate to a significant contract awarded to the Company on November 7, 1994 to provide plastic parcel lockers (CBU's) to the USPS. During the first quarter of 1995, the Company completed delivery of 3,633 CBU units, representing the first major schedule release of CBU units required by USPS. Sales of plastic lockers products are expected to remain strong throughout 1995 as the Company continues to ship CBUs under the USPS contract. All other sales, metal and electronic, were $2,539,000 for the first three months of 1995 compared to $2,287,000 in the first quarter of 1994. This increase related a general increase in demand across all markets served by the Company. Consolidated cost of products sold as a percentage of sales was 66.4% during the first quarter of 1995 compared to 70.5% in the first three months of 1994. Increased gross margins on sales represented better absorption of fixed overhead costs associated with the increased volumes. Current margins on the CBU units will be reduced by approximately one half, as the sale price on the first 20,000 units shipped include a reimbursement for the Company's investment in tooling required to produce the CBU type - 8 - III product. Through March 31, 1995, 6,435 CBU Type III units have been shipped to USPS under the contract. Selling, general and administrative costs for the first quarter of 1995 remain relatively comparable to the same period in 1994 ($1,198,000 - 1995; $1,157,000 - 1994), increasing only 3.5%. Selling, general and administrative costs represented 16.9% of sales in the first quarter of 1995, down from 33.5% of sales for the same period in 1994. Other income net of $77,600 in the first quarter of 1995 was up $22,000 from $55,600 recorded in the first three months of 1994, principally due to discounts from purchase of materials for the CBU product. Interest expense for the first quarter of 1995 increased $33,000 from 1994 due to an increase in the average balance outstanding under the Company's working capital line of credit and increased interest rates. Increased borrowings were required to support the volume of business with the USPS. ACCOUNTING CHANGES __________________ The Company provides certain life insurance benefits to its retirees. Effective January 1, 1993, pursuant to "Statement of Accounting Standards No. 106 - Employers Account for Postretirement Benefits Other Than Pension", the Company has changed its method of accounting for these benefits by expensing life insurance benefits as employees render service instead of when the benefits are paid. The transition effect, ($105,054, less income taxes of $41,992), reduced earnings by $.07 per share. Effective January 1, 1993, the Company adopted the provisions of FASB Statement No. 109, "Accounting for Income Taxes". Prior to the adoption of Statement 109, income tax expense was determined using the deferred method. The cumulative effect of this accounting change reduced earnings by $76,466 or $.08 per share. - 9 - PART II _______ Item 6. Exhibits and Reports on Form 8-K ______ ________________________________ (a) None (b) None - 10 - S I G N A T U R E - - - - - - - - - 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. AMERICAN LOCKER GROUP INCORPORATED __________________________________ (Registrant) By /s/ Harold J. Ruttenberg ________________________________ Harold J. Ruttenberg Chairman, Chief Executive Officer, Treasurer and Principal Accounting Officer Date May 12, 1995 ____________ - 11 - -----END PRIVACY-ENHANCED MESSAGE-----