-----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, W76vBgLhKBBF0y9l23+RqytCHfcledfXuhbRBXKdlAEK6g5MP9toBAMxcNUdpuUS 1C6E7ysmg9TxpSPUQrihmA== 0000898431-95-000045.txt : 19950814 0000898431-95-000045.hdr.sgml : 19950814 ACCESSION NUMBER: 0000898431-95-000045 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950811 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERICAN LOCKER GROUP INC CENTRAL INDEX KEY: 0000008855 STANDARD INDUSTRIAL CLASSIFICATION: PARTITIONS, SHELVING, LOCKERS & OFFICE AND STORE FIXTURES [2540] IRS NUMBER: 160338330 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-00439 FILM NUMBER: 95561452 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 10QSB 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 JUNE 30, ________ 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) (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. 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: AUGUST 7, 1995 Common Stock $1.00 par value - 858,876 Transitional Small Business Disclosure (check one) Yes No X ___ ___ ITEM 1 - FINANCIAL STATEMENTS STATEMENTS OF CONSOLIDATED FINANCIAL CONDITION AMERICAN LOCKER GROUP INCORPORATED AND SUBSIDIARIES June 30, December 31, 1995 1994 ___________ ____________ ASSETS CURRENT ASSETS Cash and cash equivalents $ 420,702 $ 315,685 Accounts receivable, less allowance for doubtful accounts (1995 $79,020; 1994 $68,912) 3,012,369 4,070,723 Inventories 2,778,705 2,105,537 Notes receivable 325,967 128,779 Prepaid expenses 429,274 187,001 Deferred income taxes 502,075 502,047 ___________ ___________ TOTAL CURRENT ASSETS 7,469,092 7,309,772 PROPERTY, PLANT AND EQUIPMENT Land 500 500 Buildings 494,394 489,986 Machinery and equipment 6,468,577 6,365,812 ___________ ___________ 6,963,471 6,856,298 Less allowances for depreciation and amortization 6,123,784 5,941,203 ___________ ___________ 839,687 915,095 ___________ ___________ TOTAL NON-CURRENT ASSETS 839,687 915,095 ___________ ___________ TOTAL ASSETS $ 8,308,779 $ 8,224,867 =========== =========== - 2 - STATEMENTS OF CONSOLIDATED FINANCIAL CONDITION AMERICAN LOCKER GROUP INCORPORATED AND SUBSIDIARIES June 30, December 31, 1995 1994 ___________ _____________ LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Demand note payable $ 200,000 $ 1,200,000 Accounts payable and accrued expenses: Trade 716,576 865,244 Related party 359,130 610,922 ___________ ___________ 1,075,706 1,476,166 Commissions, salaries, wages and taxes thereon 167,656 246,547 Other accrued expenses 894,028 480,868 Federal and State income taxes payable 592,541 21,246 Current portion of long-term obligations 600,000 600,000 ___________ ___________ TOTAL CURRENT LIABILITIES 3,529,931 4,024,827 DEFERRED INCOME TAXES 3,364 3,337 LONG-TERM OBLIGATIONS Long term debt, less current portion 600,000 900,000 Deferred pension income 174,542 174,542 Postretirement benefits 116,510 116,510 ___________ ___________ 891,052 1,191,052 ___________ ___________ TOTAL NON-CURRENT LIABILITIES 894,416 1,194,389 ___________ ____________ TOTAL LIABILITIES 4,424,347 5,219,216 STOCKHOLDERS' EQUITY Common stock, par value $1 per share--authorized 4,000,000 shares, issued 858,876 shares in 1995 and 858,876 in 1994 852,876 858,876 Other capital 1,527,720 1,571,970 Retained earnings 1,619,312 709,782 Foreign currency translation adjustment (115,476) (134,977) ___________ ____________ TOTAL STOCKHOLDERS' EQUITY 3,884,432 3,005,651 ___________ ____________ TOTAL LIABILITIES AND - 3 - STOCKHOLDERS' EQUITY $ 8,308,779 $ 8,224,867 =========== =========== See notes to consolidated financial statements. - 4 - STATEMENTS OF CONSOLIDATED OPERATIONS AMERICAN LOCKER GROUP INCORPORATED AND SUBSIDIARIES Three Months Ended June 30, 1995 1994 ______________ ____________ Net sales $ 5,273,245 $ 3,385,251 Cost of products sold 3,574,124 2,297,172 ______________ ____________ 1,699,121 1,088,079 Selling, administrative and general expenses 1,329,169 1,150,452 ______________ ____________ 369,952 (62,373) Interest and dividend income 9,619 3,170 Other income (expense)--net 64,274 49,596 Interest expense (43,174) (46,980) ______________ ____________ PROFIT (LOSS) BEFORE INCOME TAXES 400,671 (56,587) Income taxes (credits) 157,905 (26,682) ______________ ____________ NET PROFIT (LOSS) $ 242,766 ($29,905) ============== ============ Per share of common stock: NET PROFIT (LOSS) $ 0.28 ($0.03) ============== ============ See notes to consolidated financial statements. - 5 - STATEMENTS OF CONSOLIDATED OPERATIONS AMERICAN LOCKER GROUP INCORPORATED AND SUBSIDIARIES Six Months Ended June 30, 1995 1994 ______________ ____________ Net sales $ 12,353,329 4 6,858,847 Cost of products sold 8,276,444 4,746,839 ______________ ____________ 4,076,885 2,112,008 Selling, administrative and general expenses 2,526,867 2,307,640 ______________ ____________ 1,550,018 (195,632) Interest and dividend income 26,752 7,984 Other income (expense)--net 141,913 105,057 Interest expense (102,846) (73,589) ______________ ____________ PROFIT (LOSS) BEFORE INCOME TAXES 1,615,837 (156,180) Income taxes (credits) 706,306 (65,662) ______________ ____________ NET PROFIT (LOSS) $ 909,531 ($90,518) ============== ============ NET PROFIT (LOSS) PER SHARE OF COMMON $ 1.06 ($0.10) ============== ============ See notes to consolidated financial statements. - 6 - STATEMENTS OF CONSOLIDATED CASH FLOWS AMERICAN LOCKER GROUP INCORPORATED AND SUBSIDIARIES Six Months Ended June 30, 1995 1994 ______________ ____________ Cash flows from operating activities: Net income (loss) from operations $909,531 ($90,518) Adjustments to reconcile net loss from operations to net cash provided by operating activities: Depreciation and amortization 173,154 312,475 Gain (loss) on disposition of property, plant and equipment (23,767) (27,788) Change in assets and liabilities: Notes receivable (197,188) 145,850 Accounts receivable 1,058,354 (609,898) Income taxes 0 (88,339) Inventories (673,168) (104,690) Prepaid expenses (242,273) (8,167) Accounts payable and accrued expenses 505,104 797 ___________ ___________ NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 1,509,747 (470,278) Cash flows from investment activities: Purchase of property, plant and equipment (98,377) (117,905) Proceeds from sale of property, plant and equipment 24,397 32,682 ___________ ___________ NET CASH USED IN INVESTING ACTIVITIES (73,980) (85,223) Cash flows from financing activities: Additional borrowing long-term debt 0 1,100,000 Net borrowing under line of credit (1,000,000) (200,000) Debt repayments (300,000) (300,000) Treasury stock purchased/ retired (50,250) (86,528) Stock options exercised 0 21,994 ___________ ___________ NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (1,350,250) 535,466 ___________ ___________ Effect of exchange rate changes on cash 19,501 (19,477) - 7 - ___________ ___________ Net increase (decrease) in cash 105,018 (39,512) Cash and cash equivalents at beginning of year 315,684 317,625 ___________ ___________ CASH AND CASH EQUIVALENTS AT END OF PERIOD $420,702 $278,113 =========== =========== Supplemental cash flow information: Cash paid during the quarter for: Interest $102,846 $73,589 =========== =========== Income Taxes $50,000 $66,775 =========== =========== See notes to consolidated financial statements. - 8 - 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 operations, 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 per common share is computed by dividing net income 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 periods; 858,411 shares for the six months ended June 30, 1995 and 857,962 shares for the quarter ended June 30, 1995; 863,871 for the six months ended June 30, 1994 and 859,583 for the quarter ended June 30, 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. June 30, December 31, 1995 1994 ____________ ____________ Raw materials $ 1,515,622 $ 1,104,489 Work-in-process 1,281,013 1,266,263 Finished goods 924,472 677,187 ____________ ____________ $ 3,721,107 $ 3,047,939 Less allowance to reduce carrying value to LIFO basis 942,402 942,402 ____________ ____________ $ 2,778,705 $ 2,105,537 ============ ============ - 9 - ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS AMERICAN LOCKER GROUP INCORPORATED AND SUBSIDIARIES LIQUIDITY AND SOURCES OF CAPITAL The Company continues to have adequate resources and liquidity to maintain and expand its operations. Working capital at June 30, 1995 was $3,939,000 up $654,000 over working capital of $3,285,000 at December 31, 1994. The ratio of current assets to current liabilities was 2.1 to 1 at June 30, 1995, as compared to a ratio of 1.8 to 1, at December 31, 1994. The increased working capital resulted primarily from profitable operations during the first six months of 1995. Cash provided from operations was $1,510,000 during the first six months of 1995, compared to cash used in operating activities of $470,000 for the same period in 1994. The significant improvement in cash provided by operating activities is a result of profitable operations in 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 down 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 SIX MONTHS 1995 VS. FIRST SIX MONTHS 1994 Sales for the first six months of 1995 of $12,353,000 were up $5,494,000 (80%) compared to sales of $6,859,000 during the same period in 1994. Plastic locker sales for the first half of 1995 were $7,184,000 compared to $1,990,000 during the first half of 1994. The increase in plastic locker sales relates 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 half of 1995, the Company's delivery of CBU units totaled $5,030,000. During the first quarter of 1995, the Company's delivery of CBU units totaled $3,534,000, completing the first major scheduled release of CBU units required by USPS. Sales of plastic locker products are expected to remain strong throughout 1995 as the Company continues to ship CBU units under the USPS contract. All other sales, metal and electronic, were $5,169,000 for the first six months of 1995 compared to $4,869,000 for the first six months of 1994. This increase relates to a general increase in demand across all markets served by the Company. Consolidated costs of goods sold as a percentage of sales was 67% during the first six months of 1995 compared to 69.2% in the - 10 - first six months of 1994. Increased gross margins on sales represents better absorption of fixed overhead costs associated with the increased volumes. The current margins on 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 III product. Selling, administrative and general expense for the first half of 1995 increased approximately $219,000 on the same period in 1994. Selling, administrative and general expenses as a percent of sales was 20.5% during the first six months of 1995, down from 33.6% during the first six months of 1994. Other income--net of $142,000 in the first half of 1995 was up $37,000 from the same period in 1994. The increase in 1995 is due principally to discounts earned from the purchase of materials for the CBU product. Interest expense in the first half of 1995 increased $29,000 from the same period in 1994 due to an increase in the average balance outstanding under the Company's working capital line of credit and an increase in interest rates. Increased borrowings, principally during the later half of 1994 and first quarter of 1995 was required to support the increased volume with USPS. SECOND QUARTER 1995 VS. SECOND QUARTER 1994 Second quarter sales were $5,273,000 up $1,888,000 from the same period in 1995. Plastic sales of $2,643,000 were up 329% or $1,840,000 over 1994's second quarter. Sales of other products, metal and electronic lockers, were $2,630,000 during the second quarter of 1995 up slightly from second quarter sales of $2,582,000 during the second quarter of 1994. Second quarter 1995 sales, while up from the second quarter of 1994, are down from the sales levels experienced during the first quarter of 1995. The first quarter of 1995 included the completion of the first major scheduled release of CBU units required by the USPS. Consolidated cost of products sold as a percentage of sales was 67.8% during the second quarter of 1995 which is relatively comparable to the 67.9% experienced during the second quarter of 1994. Selling, administrative and general expenses as a percent of net sales was 25.2% during the second quarter of 1995 compared to 34% in the second quarter of 1994. Other income--net of $64,000 in the second quarter of 1995 was up from $50,000 in the second quarter of 1994, due principally to discounts earned from the purchase of materials for the CBU product. - 11 - PART II Item 6. Exhibits and Reports on Form 8-K (a) Exhibits Exhibit 27 Financial Data Schedule dated June 30, 1995. (b) The Company did not file any reports on Form 8-K during the three months ended June 30, 1995. - 12 - S I G N A T U R E - - - - - - - - - In accordance with the requirements of the Exchange Act, 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 August 11, 1995 - 13 - EXHIBIT INDEX Prior Filing or Sequential Page Exhibit No. No. Herein ___________ _______________ 27 Financial Data Schedule dated June 30,1995 - 14 - EX-27 2
5 This schedule contains summary financial information extracted from SEC Form 10-QSB and is qualified in its entirety by reference to such financial statements. 3-MOS DEC-31-1995 JUN-30-1995 420,702 0 3,417,356 79,020 2,778,705 7,469,092 6,965,411 6,123,784 8,308,779 3,529,931 0 852,876 0 0 2,265,120 8,308,779 5,273,245 5,273,245 3,574,124 4,903,293 43,174 0 0 400,671 157,905 242,766 0 0 0 242,766 .28 .28
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