-----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, PIj0Lc4QP+baXRNhmoqBtfQLZKRmz0u+lTupUov6ENiQtFFMUWrqfCFyXeX20e9E tNw5VbFk7LPJ5DAlCKzlfw== 0000898431-95-000078.txt : 19951106 0000898431-95-000078.hdr.sgml : 19951106 ACCESSION NUMBER: 0000898431-95-000078 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951103 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: 95587044 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 SEPTEMBER 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 of incorporation or organization) Identification Number) 15 West Second Street, Jamestown, NY 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: NOVEMBER 2, 1995 Common Stock $1.00 par value - 818,626 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 September 30, December 31, 1995 1994 ------------- ------------ ASSETS CURRENT ASSETS Cash and cash equivalents $404,131 $315,685 Accounts receivable, less allowance for doubtful accounts (1995 $75,354; 1994 $68,912) 3,309,630 4,070,723 Inventories 2,601,232 2,105,537 Notes receivable 340,333 128,779 Prepaid expenses 155,511 187,001 Deferred income taxes 502,047 502,047 ------------- ------------ TOTAL CURRENT ASSETS 7,312,884 7,309,772 PROPERTY, PLANT AND EQUIPMENT Land 500 500 Buildings 495,916 489,986 Machinery and equipment 7,203,138 6,365,812 ------------- ------------ 7,699,554 6,856,298 Less allowances for depreciation and amortization 6,205,409 5,941,203 ------------- ------------ 1,494,145 915,095 ------------- ------------ TOTAL NON-CURRENT ASSETS 1,494,145 915,095 ------------- ------------ TOTAL ASSETS $8,807,029 $8,224,867 ============= ============ STATEMENTS OF CONSOLIDATED FINANCIAL CONDITION AMERICAN LOCKER GROUP INCORPORATED AND SUBSIDIARIES September 30, December 31, 1995 1994 ------------- ------------- LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Demand note payable $ 100,000 $1,200,000 Accounts payable and accrued expenses; Trade 636,423 865,244 Related party 305,653 610,922 ------------- -------------- 942,076 1,476,166 Commissions, salaries, wages and taxes thereon 223,612 246,547 Other accrued expenses 1,054,012 480,868 Federal and State income taxes payable 962,043 21,246 Current portion of long-term obligations 600,000 600,000 ------------- -------------- TOTAL CURRENT LIABILITIES 3,881,743 4,024,827 DEFERRED INCOME TAXES 3,337 3,337 LONG-TERM OBLIGATIONS Long term debt, less current portion 450,000 900,000 Deferred pension income 174,542 174,542 Postretirement benefits 116,510 116,510 ------------- -------------- 741,052 1,191,052 ------------- -------------- TOTAL NON-CURRENT LIABILITIES 744,389 1,194,389 ------------- -------------- TOTAL LIABILITIES 4,626,132 5,219,216 STOCKHOLDERS' EQUITY Common stock, par value $1 per share - authorized 4,000,000 shares, issued 838,626 shares in 1995 and 858,876 in 1994 838,626 858,876 Other capital 1,413,814 1,571,970 Retained earnings 2,025,644 709,782 Foreign currency translation adjustment (97,187) (134,977) ------------- -------------- TOTAL STOCKHOLDERS' EQUITY 4,180,897 3,005,651 ------------- -------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $8,807,029 $8,224,867 ============= ============== See notes to consolidated financial statements. STATEMENTS OF CONSOLIDATED OPERATIONS AMERICAN LOCKER GROUP INCORPORATED AND SUBSIDIARIES Three Months Ended September 30, 1995 1994 ------------ ------------ Net Sales $5,633,832 $3,107,603 Cost of products sold 3,722,834 2,158,627 1,910,998 948,976 Selling, administrative and general expenses 1,287,947 1,165,393 623,051 (216,417) Interest and dividend income 24,094 6,392 Other income (expense)-net 65,698 87,848 Interest expense (34,248) (46,361) PROFIT (LOSS) BEFORE INCOME TAXES 678,595 (168,538) Income taxes (credits) 272,263 (26,899) NET PROFIT (LOSS) $406,332 ($141,639) ============= ============= Per share of common stock: NET PROFIT (LOSS) $0.48 ($0.16) ============= ============= See notes to consolidated financial statements. STATEMENTS OF CONSOLIDATED OPERATIONS AMERICAN LOCKER GROUP INCORPORATED AND SUBSIDIARIES Nine Months Ended September 30, 1995 1994 ------------- ------------ Net Sales $17,987,161 $9,966,450 Cost of products sold 11,999,278 6,905,466 5,987,883 3,060,984 Selling, administrative and general expenses 3,814,814 3,473,033 2,173,069 (412,049) Interest and dividend income 50,846 14,376 Other income -- net 207,611 192,905 Interest expense (137,094) (119,950) PROFIT (LOSS) BEFORE INCOME TAXES 2,294,432 (324,718) Income taxes (credits) 978,569 (92,561) NET PROFIT (LOSS) $1,315,863 ($232,157) ============= ============== NET PROFIT (LOSS) PER SHARE OF COMMON $1.54 ($0.27) ============= ============== See notes to consolidated financial statements. STATEMENTS OF CONSOLIDATED CASH FLOWS AMERICAN LOCKER GROUP INCORPORATED AND SUBSIDIARIES Nine Months Ended September 30, 1995 1994 ---------------- -------------- Cash flows from operating activities: Net income (loss) from operations $1,315,863 ($232,157) Adjustments to reconcile net loss from operations to net cash provided by operating activities: Depreciation and amortization 259,625 451,196 Gain on disposition of property, plant and equipment (19,449) (82,650) Change in assets and liabilities: Notes receivable (211,554) 188,169 Account receivable 761,093 (85,269) Deferred income taxes 0 (102,302) Inventories (495,695) (140,719) Prepaid expenses 31,490 (17,729) Accounts payable and accrued expenses 956,917 (239,516) NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 2,598,290 (260,977) Cash flows from investment activities: Purchase of property, plant and equipment (843,924) (223,218) Proceeds from sale of property, plant and equipment 24,697 89,813 NET CASH USED IN INVESTING ACTIVITIES (819,227) (133,405) Cash flows from financing activities: Additional borrowing long-term 0 1,100,000 Net payments under Line of Credit (1,100,000) (400,000) Debt repayments (450,000) (450,000) Treasury stock purchased/retired (178,406) (86,528) Stock options exercised 0 21,994 NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (1,728,406) 185,466 Effect of exchange rate changes on cash 37,790 16,869 Net increase (decrease) in cash 88,447 (192,047) Cash and cash equivalents at beginning of year 315,684 317,625 CASH AND CASH EQUIVALENTS AT END OF PERIOD $404,131 $125,578 =============== ============== Supplemental cash flow information: Cash paid during the quarter for: Interest $137,094 $119,950 =============== ============== Income Taxes $75,000 $66,775 =============== ============== See notes to consolidated financial statements. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 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; 854,267 shares for the nine months ended September 30, 1995 and 845,957 shares for the quarter ended September 30, 1995; 863,479 for the nine months ended September 30, 1994 and 862,565 for the quarter ended September 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. September 30, December 31, 1995 1994 ------------- ------------ Raw materials $1,398,881 $1,104,489 Work-in-process 1,275,179 1,266,263 Finished goods 869,574 677,187 ------------- ------------ $3,543,634 $3,047,939 Less allowance to reduce carrying value to LIFO basis 942,402 942,402 ------------- ------------ $2,601,232 $2,105,537 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 September 30, 1995 was $3,984,000, up $699,000 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 September 30, 1995, as compared to a ratio of 1.8 to 1 at December 1994. The increased working capital resulted primarily from profitable operations during the first nine months of 1995. Cash provided from operations was $1,925,000 during the first nine months of 1995, compared to cash used in operating activities of $261,000 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 anticipated that its requirements for funds for operations and capital expenditures will be provided principally from cash generated from future operations. FIRST NINE MONTHS 1995 VS FIRST NINE MONTHS 1994 Sales for the first nine months of 1995 of $17,987,000 were up $8,021,000 (80.5%) compared to sales of $9,966,000 during the same period in 1994. Plastic locker sales for the first nine months of 1995 were $10,527,000 compared to $3,083,000 during the first nine months 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 (CBUs) to the USPS. During the first nine months of 1995, the Company's delivery of CBU units totaled $7,353,000. During the first half of 1995, the Company's delivery of CBU units totaled $5,030,000, completing the first major scheduled release of CBU units required by the 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 $7,460,000 for the first nine months of 1995 compared to $6,883,000 for the first nine 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 66.7% during the first nine months of 1995 compared to 69.3% in the first nine 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 on tooling required to produce the CBU Type III product. Selling, administrative and general expense for the first nine months of 1995 increased approximately $342,000 on the same period in 1994. Selling, administrative and general expenses as a percent of sales was 21.2% during the first nine months of 1995, down from 34.8% during the first nine months of 1994. Other income - net of $208,000 in the first nine months of 1995 was up $15,000 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 nine months of 1995 increased by $17,000 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 latter nine months of 1994 and first half of 1995 was required to support the increased volume with USPS. THIRD QUARTER 1995 VS THIRD QUARTER 1994 Third quarter 1995 sales were $5,634,000 up $2,527,000 from the same period in 1994. Plastic sales of $3,343,000 were up 81.3% or $2,250,000 over 1994's third quarter. Sales of other products, metal and electronic lockers, were $2,291,000 during the third quarter of 1995 up slightly from third quarter sales of $2,014,000 during the third quarter of 1994. Third quarter 1995 sales, while up from the third 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 66.1% during the third quarter of 1995 which is relatively comparable to the 69.5% experienced during the third quarter of 1994. Selling, administrative and general expenses as a percent of net sales was 22.9% during the third quarter of 1995 compared to 37.5% in the third quarter of 1994. Other income - net of $66,000 in the third quarter of 1995 was down from $88,000 in the third quarter 1994, due principally to discounts earned from the purchase of materials for the CBU product. PART II Item 6. Exhibits and Reports on Form 8-K (a) Exhibits Exhibit 27 Financial Data Schedule dated September 30, 1995. (b) The Company did not file any reports on Form 8-K during the three months ended September 30, 1995. SIGNATURE 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) /s/ Harold J. Ruttenberg --------------------------------- Harold J. Ruttenberg Chairman, Chief Executive Officer, Treasurer and Principal Accounting Officer Date November 3, 1995 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 SEP-30-1995 404,131 0 3,725,317 75,354 2,601,232 7,312,884 7,203,138 6,205,409 8,807,029 3,881,743 0 838,626 0 0 2,363,702 8,807,029 5,633,832 5,633,832 3,722,834 5,010,781 34,248 0 0 678,595 272,263 406,332 0 0 0 406,332 .48 .48
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