-----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, Dd2apDH7x2eCeu8RWY1eZLOmhmvm/95VgGs3pBxkcbVwyQOgm0ML9UDb2uo6Gfa2 E5bDo5dZRJop6LV1+ba84A== 0000950152-99-006869.txt : 19990817 0000950152-99-006869.hdr.sgml : 19990817 ACCESSION NUMBER: 0000950152-99-006869 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990630 FILED AS OF DATE: 19990816 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SERVOTRONICS INC /DE/ CENTRAL INDEX KEY: 0000089140 STANDARD INDUSTRIAL CLASSIFICATION: CUTLERY, HANDTOOLS & GENERAL HARDWARE [3420] IRS NUMBER: 160837866 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 001-07109 FILM NUMBER: 99690087 BUSINESS ADDRESS: STREET 1: 1110 MAPLE ST CITY: ELMA STATE: NY ZIP: 14059 BUSINESS PHONE: 7166335990 MAIL ADDRESS: STREET 1: P O BOX 300 STREET 2: ELMA STATE: NY ZIP: 14059-0300 10QSB 1 SERVOTRONICS, INC. 10QSB 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1999 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________________ to ____________________ Commission File No. 1 - 7109 SERVOTRONICS, INC. - -------------------------------------------------------------------------------- (Exact name of small business issuer as specified in its charter) Delaware 16-0837866 -------- ---------- (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) 1110 Maple Street, Elma, New York 14059-0300 -------------------------------------------- (Address of principal executive offices) 716-655-5990 ------------ (Issuer's telephone number, including area code) Check whether the issuer: (1) filed all reports required to be filed by Section 13 or 15(d) of the 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 [ ] State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date. Class Outstanding at July 31, 1999 - -------------------------------- ---------------------------- Common Stock, $.20 par value 2,405,488 (See Note 5 to Consolidated Financial Statements) Transitional Small Business Disclosure Format (Check one): Yes [ ]; No [X] -1- 2 INDEX ----- PART I. FINANCIAL INFORMATION Page No. Item 1. Financial Statements a) Consolidated Balance Sheet, June 30, 1999 3 b) Consolidated Statement of Income for the Three and Six Months Ended June 30, 1999 and 1998 4 c) Consolidated Statement of Cash Flows for the Six Months Ended June 30, 1999 and 1998 5 d) Notes to Consolidated Financial Statements 6 Item 2. Management's Discussion and Analysis or Plan of Operation 10 PART II. OTHER INFORMATION Item 4. Submission of Matters to a Vote of Security Holders 12 Signatures 13 Item 6(a). Exhibits 27 Financial Data Schedule -2- 3
PART I FINANCIAL INFORMATION SERVOTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET June 30, 1999 ($000's omitted except per share data) (Unaudited) Assets Current assets: Cash $ 1,083 Accounts receivable 2,540 Inventories 9,728 Prepaid income taxes 28 Deferred tax asset 539 Other 1,511 -------- Total current assets 15,429 -------- Property, plant and equipment, net 7,211 Other assets 622 $ 23,262 ======== Liabilities and Shareholders' Equity Current liabilities: Current portion of long-term debt $ 254 Demand loan 250 Accounts payable 985 Accrued employee compensation and benefit costs 940 Other accrued liabilities 217 -------- Total current liabilities 2,646 -------- Long-term debt 6,824 Non-current deferred tax liability 477 Other non-current liability 277 Shareholders' equity: Common stock, par value $.20; authorized 4,000,000 shares; Issued 2,614,506 shares 523 Capital in excess of par value 13,324 Retained earnings 2,992 Accumulated other comprehensive income (43) -------- 16,796 Employee stock ownership trust commitment (2,741) Treasury stock, at cost 209,018 shares (1,017) -------- Total shareholders' equity 13,038 -------- $ 23,262 ========
See notes to consolidated financial statements. -3- 4
SERVOTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME ($000's omitted except per share data) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 1999 1998 1999 1998 ---- ---- ---- ---- Net revenues $4,614 $4,492 $ 8,205 $8,930 Costs and expenses: Cost of goods sold 3,248 2,973 5,753 6,174 Selling, general and administrative 873 859 1,569 1,665 Interest 92 84 159 163 Depreciation and amortization 156 160 313 318 ------ ------ ------- ------ 4,369 4,076 7,794 8,320 ------ ------ ------- ------ Income before income taxes and cumulative effect of a change in accounting principle 245 416 411 610 Income tax provision 98 175 164 256 ------ ------ ------- ------ Income before cumulative effect of a change in accounting principle 147 241 247 354 Cumulative effect of a one-time change in accounting principle -- -- (75) -- ------ ------ ------- ------ Net income $ 147 $ 241 $ 172 $ 354 ====== ====== ======= ====== Income (Loss) Per Share: Basic Income per share before cumulative effect of a change in accounting principle $ 0.08 $ 0.14 $ 0.14 $ 0.20 Cumulative effect per share of a change in accounting principle -- -- (0.04) -- ------ ------ ------- ------ Net income per share $ 0.08 $ 0.14 $ 0.10 $ 0.20 ====== ====== ======= ====== Diluted Income per share before cumulative effect of a change in accounting principle $ 0.08 $ 0.13 $ 0.14 0.20 Cumulative effect per share of a change in accounting principle -- -- (0.04) -- ------ ------ ------- ------ Net income per share $ 0.08 $ 0.13 $ 0.10 $ 0.20 ====== ====== ======= ======
See notes to consolidated financial statements -4- 5
SERVOTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS ($000's omitted) (Unaudited) Six Months Ended June 30, 1999 1998 ---- ---- Cash flows related to operating activities: Net income $ 172 $ 354 Adjustments to reconcile net income to net cash provided by operating activities - Depreciation and amortization 313 318 Cumulative effect of change in accounting principle 75 -- Change in assets and liabilities - Accounts receivable (342) (832) Inventories (869) (283) Prepaid income taxes 37 38 Other current assets (135) (78) Other assets 8 8 Accounts payable 95 337 Accrued employee compensation & benefit costs 10 168 Other accrued liabilities 34 43 Accrued income tax -- 8 ------- ------- Net cash (used in) provided by operating activities (602) 81 ------- ------- Cash flows related to investing activities: Capital expenditures - property, plant & equipment (314) (279) ------- ------- Net cash used in investing activities (314) (279) ------- ------- Cash flows related to financing activities: Increase in demand loan 350 150 Payments on demand loan (100) (350) Acquisition of long-term debt 1,000 -- Principal payments on long-term debt (315) (111) Issuance of common stock -- 26 Net cash proceeds from exercise of stock options 55 -- ------- ------- Net cash provided by (used in) financing activities 990 (285) ------- ------- Net increase (decrease) in cash 74 (483) Cash at beginning of period 1,009 1,185 ------- ------- Cash at end of period $ 1,083 $ 702 ======= =======
See notes to consolidated financial statements -5- 6 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ($000 omitted in tables except for per share data) 1. The information set forth herein is unaudited. This financial information reflects all normal accruals and adjustments which, in the opinion of management, are necessary for a fair statement of the results for the periods presented. Revenue recognition ------------------- The Company incurred costs for certain contracts which are long term. These contracts are accounted for under the percentage of completion method (cost-to-cost) which recognizes revenue as the work progresses towards completion. Revenues on the remaining contracts are recognized when the terms of purchase orders are met. Included in other current assets are $1,064,000 of unbilled revenues which represent revenue earned under the percentage of completion method (cost-to-cost) not yet billable under the terms of the contracts. Reclassification of prior year balances --------------------------------------- Certain prior year balances have been reclassified to conform with the current year presentation.
2. Inventories June 30, 1999 ----------- ------------- Raw materials and common parts $ 1,489 Work-in-process (including engineering and other support costs) 7,911 Finished goods 564 ------- 9,964 Less common parts expected to be used after one year (236) ------- $ 9,728 =======
Engineering and other support costs are incurred in fulfilling certain contracts which have a production cycle longer than one year. A portion of these costs will, therefore, not be realized within one year. On January 1, 1999, as required by the Accounting Standards Executive Committee, the Company adopted the newly enacted Statement of Position No. 98-5 "Reporting on the Cost of Start-Up Activities" (SoP-98-5). The effect of adopting SoP-98-5 resulted in the write-off of approximately $125,000 of start-up costs which were appropriately capitalized to inventory in prior years. An approximate $75,000 charge (net of tax of $50,000) was recorded as of January 1, 1999, which was recorded as a cumulative effect of a change in accounting principle in the June 30, 1999 Consolidated Statement of Income.
3. Property, plant and equipment June 30, 1999 ------------- Land $ 11 Buildings 6,156 Machinery, equipment and tooling 8,773 -------- 14,940 Less accumulated depreciation (7,729) -------- $ 7,211 ========
-6- 7 Property, plant and equipment includes land and building under a $5,000,000 capital lease which can be purchased for a nominal amount at the end of the lease term.
4. Long-term debt --------------- June 30, 1999 ------------- Industrial Development Revenue Bonds; secured by a letter of credit from a bank with interest payable monthly at a floating rate (4.0% at June 30, 1999) $ 5,000 Unsecured term note; payable to a financial institution with interest on $464,000 at LIBOR plus 2% (7.09% at June 30, 1999) and interest on the remaining $500,000 at a current rate of 5.86%; quarterly principal payments of $35,714 through February 1, 2006 964 Various other secured term notes payable to government agencies 1,114 ------- 7,078 Less current portion (254) ------- $ 6,824 =======
Industrial Development Revenue Bonds were issued by a government agency to finance the construction of the Company's new headquarters/Advanced Technology facility. Annual sinking fund payments of $170,000 commence December 1, 2000 and continue through 2013, with a final payment of $2,620,000 due December 1, 2014. The Company has agreed to reimburse the issuer of the letter of credit if there are draws on that letter of credit. The Company pays the letter of credit bank an annual fee of 1% of the amount secured thereby and pays the remarketing agent for the bonds an annual fee of .25% of the principal amount outstanding. The Company's interest under the facility capital lease has been pledged to secure its obligations to the government agency, the bank and the bondholders. The letter of credit reimbursement agreement, the unsecured term note agreement and a secured term note contain, among other things, covenants relative to maintenance of working capital and tangible net worth and restrictions on capital expenditures, leases and additional borrowings. The Company also has a $1,000,000 line of credit on which there was $250,000 outstanding at June 30, 1999. -7- 8
5. Common shareholders' equity --------------------------- Common stock -------------- Accumulated Number Capital in other of shares excess of Retained Treasury Comprehensive comprehensive issued Amount par value earnings ESOP stock income income --------------------------------------------------------------------------------------------- Balance December 31, 1998 2,614,506 $523 $13,324 $2,904 ($ 2,741) ($ 1,156) ($ 43) ========= ==== ======= ====== ========= ======= ========== Comprehensive income Net income - - - $ 172 - - $ 172 - Other comprehensive income, net of tax - - - - - - - - Minimum pension liability adjustment - - - - - - - - Other comprehensive income - - - - - - - - ------- Comprehensive income - - - - - - $ 172 - ======= Issuance of common stock - - - (84) - - - Compensation expense - - - - - - - Treasury stock - - - - - 139 - Exercise of stock options - - - - - - - --------- ---- ------- ------ -------- -------- ---------- Balance June 30, 1999 2,614,506 $523 $13,324 $2,992 ($ 2,741) ($ 1,017) ($ 43) ========= ==== ======= ====== ======== ======== ==========
Earnings per share - ------------------ Basic earnings per share is computed by dividing net earnings by the weighted average number of shares outstanding during the period. Diluted earnings per share is computed by dividing net earnings by the weighted average number of shares outstanding during the period plus the number of shares of common stock that would be issued assuming all contingently issuable shares having a dilutive effect on earnings per share were outstanding for the period.
Three Months Ended Six Months Ended June 30, June 30, 1999 1998 1999 1998 ---- ---- ---- ---- Income before cumulative effect of a change in accounting principle $ 147 $ 241 $ 247 $ 354 Cumulative effect of a change in accounting principle -- -- (75) -- --------- --------- --------- --------- Net earnings $ 147 $ 241 $ 172 $ 354 Weighted average common shares outstanding (basic) 1,811 1,739 1,801 1,733 Incremental shares from assumed conversions of stock options 4 62 5 62 Weighted average common shares outstanding (diluted) 1,815 1,801 1,806 1,795 Income (Loss) Per Share: Basic ----- Income per share before cumulative effect of a change in accounting principle $ 0.08 $ 0.14 $ 0.14 $ 0.20 Cumulative effect per share of a change in accounting principle -- -- (0.04) -- --------- --------- --------- --------- Net income per share $ 0.08 $ 0.14 $ 0.10 $ 0.20 ========= ========= ========= ========= Diluted ------- Income per share before cumulative effect of a change in accounting principle $ 0.08 $ 0.13 $ 0.14 $ 0.20 Cumulative effect per share of a change in accounting principle -- -- (0.04) -- --------- --------- --------- --------- Net income per share $ 0.08 $ 0.13 $ 0.10 $ 0.20 ========= ========= ========= =========
-8- 9 6. Business segments ----------------- The Company operates in two business segments, Advanced Technology Products and Consumer Products. The Company's reportable segments are strategic business units that offer different products and services. The segments are separate corporations and are managed separately. Operations in Advanced Technology Products involve the design, manufacture, and marketing of servo-control components for government and commercial industrial applications. Consumer Products operations involve the design, manufacture and marketing of a variety of cutlery products for use by consumer and government agencies. The Company derives substantially all of its sales revenue from domestic customers.
Advanced Period ended Technology Consumer June 30, 1999 Products Products Consolidated ------------- -------- -------- ------------ Revenues from unaffiliated customers $ 4,976 $ 3,230 $ 8,205 ========= ======== ========= Operating profit $ 870 $ (88) $ 782 ========= ========= Interest expense (159) General corporate expense (212) Income before income taxes and cumulative effect of change in accounting principle $ 411 =========
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION --------------------------------------------------------- The following table sets forth for the periods indicated the percentage relationship of certain items in the consolidated statement of income to net revenues and the percentage increase or decrease of such items as compared to the indicated prior period.
Relationship to Period to Relationship to Period to net revenues period $ net revenues period $ three months ended increase six months ended increase June 30 (decrease) June 30 (decrease) 1999 1998 99-98 1999 1998 99-98 ---- ---- ----- ---- ---- ----- Net revenues Advanced technology products 62.7% 62.7% 3.8% 60.6% 61.9% (9.1%) Consumer products 37.3% 37.3% 0.9% 39.4% 38.1% (6.5%) ----- ----- ---- ----- ----- ----- 100.0% 100.0% 2.7% 100.0% 100.0% (8.1%) Cost of goods sold, exclusive of depreciation 70.4% 66.2% 9.2% 70.1% 69.1% (6.8%) ----- ----- ---- ----- ----- ----- Gross profit 29.6% 33.8% (10.1%) 29.9% 30.9% (11.0%) ----- ----- ----- ----- ----- ------ Selling, general and administrative 18.9% 19.1% 1.6% 19.1% 18.6% (5.8%) Interest 2.0% 1.9% 9.5% 1.9% 1.8% (2.5%) Depreciation and amortization 3.4% 3.6% (2.5%) 3.8% 3.6% (1.6%) ---- ---- ---- ---- ---- ----- 24.3% 24.6% 8.6% 24.8% 24.0% (9.9%) ----- ----- ---- ----- ----- ----- Income before income taxes and cumulative effect of a change in accounting principle 5.3% 9.2% (41.1%) 5.1% 6.9% (32.6%) Income tax provision 2.1% 3.8% (44.0%) 2.1% 2.9% (35.9%) ---- ---- ----- ---- ---- ------ Net income before cumulative effect of a change in accounting principle 3.2% 5.4% (39.0%) 3.0% 4.0% (30.2%) ---- ---- ----- ---- ---- ------ Cumulative effect of a change in accounting principle -- -- - (0.9%) -- -- ---- ---- ---- ---- Net income 3.2% 5.4% (39.0%) 2.1% 4.0% (51.4%) ==== ==== ====== ==== ==== ======
-9- 10 Management Discussion - --------------------- During the six month period ended June 30, 1999 and for the comparable period ended June 30, 1998, approximately 15% and 23% respectively, of the Company's revenues were derived from contracts with agencies of the U.S. Government or their prime contractors. For the second quarter of 1999 and 1998, approximately 15% and 26% of the Company's revenues were derived from comparable sources. The Company's business is performed under fixed price contracts. It is noted that the many uncertainties in today's global economy, and difficulty in predicting defense appropriations (both actual and proposed) preclude any guarantees or even assurances that current programs will be continued or that programs in the prototype stages will ultimately result in production applications. It is because of such uncertainties and because such adverse occurrences may not be counterbalanced with new programs or otherwise, that cyclical downturns in operational performances are realistic expectations. Results of Operations - --------------------- The Company's consolidated results of operations for the six month period ended June 30, 1999 showed an approximate 8.1% decrease in net revenues and a decrease in net income of approximately 30.2%, before the $75,000 cumulative effect of a change in accounting principle, when compared to the same six month period of 1998. For the second quarter of 1999, net sales increased approximately 2.7% with a decrease in net income of 39%. The six month decrease in revenues is primarily the result of the stretch-out of certain Advanced Technology Group's deliveries offset by increased revenues in the second quarter due to revenue recognized on contracts accounted for under the percentage of completion method [cost-to-cost (See Note 1)]. These same factors contributed to the fluctuations in net income and operating profit as discussed below. The Advanced Technology Group's total backlog (funded and unfunded) as of June 30, 1999 increased by approximately $3,400,000 from a year earlier. The June 30, 1999 total backlog is approximately $58,900,000 as compared to $55,500,000 of which $50,200,000 and $48,200,000 were unfunded in each of the respective comparative periods. Approximately $36,400,000 of the June 30, 1999 backlog is for product deliveries beyond 2001. The unfunded portion of the backlog is based on the Company's customers' estimated quantities for multi-year agreements for which the Company has not received firm orders. Operating profit as a percentage of net revenues for the six month period ended June 30, 1999 decreased to 5.1% from 6.9% as reported for the same six month period of 1998. For the second quarter of 1999, operating profit as a percent of net revenue decreased to 5.3% from 9.2% when compared to the same period of 1998. The fluctuations in operating profit as a percentage of net revenues are primarily the result of differences in product mix. Selling, general and administrative costs as a percentage of net revenues remained reasonably consistent for the six and three month periods ended June 30, 1999 when compared to the comparable period of 1998. Income taxes for the six and three month periods ended June 30, 1999 decreased as a percentage of income before taxes when compared to the comparable period of 1998 because of the effects of variable state income taxes. Liquidity and Capital Resources - ------------------------------- Certain contracts of the Advanced Technology Group require development and engineering costs in addition to hardware and the maintenance of inventory for replacement -10- 11 and/or overhaul. The replacement and/or overhaul units are billed at the time of shipment. The inventories at June 30, 1999, include costs associated with the initiation and maintenance of certain programs and costs in anticipation of increased demands upon the Company to support new programs and the request of customers for shorter production lead times. During the six month period ended June 30, 1999, the Company expended $314,000 on capital expenditures. There are no material commitments for capital expenditures at June 30, 1999. Year 2000 Initiatives - --------------------- The Company is reliant on systems that use time-based mechanisms for asset and information management. Management recognizes that such systems may have potential problems affecting their capabilities because of the Year 2000 date change. The Company also has relationships with vendors, services and product suppliers, customers and financial institutions among others, which are reliant on such systems. It is possible that Year 2000 problems encountered by the Company or these outside parties could result in a loss of business that is potentially material to the Company. During the previous and current years, the Company formulated, initiated and continued the implementation of a three-phase plan to determine and, when appropriate, address any internal or external Year 2000 problems to the extent they existed. Phase I identified internal and external (outside parties with a material relationship to the Company) Year 2000 compliance concerns. Phase II assessed the Year 2000 readiness of the Company. Phase III is the implementation of solutions and contingency plans for the potential problems identified during Phase I and Phase II. To date, the Company has assessed its internal computing systems and determined that there are no apparent material Year 2000 issues, although certain reprogramming of internal systems were determined to be desirable and have been completed. With respect to external compliance, the Company has developed and mailed a Year 2000 survey to its suppliers, customers and financial institutions to determine their Year 2000 readiness and compliance. As of July 31, 1999, the Company has not received notification from any such outside parties that any material Year 2000 readiness or compliance issues have been identified. The Company has implemented Phase III and is unaware of any internal Year 2000 issues that will not be resolved by the end of 1999. Should the Company become aware of any internal or external Year 2000 issues that will not be resolved by the end of 1999, it will immediately formulate and implement the appropriate solutions and contingency plans. In any event, it is anticipated that the Company will complete all phases of its Year 2000 plan by the end of 1999. The Company does not believe that the costs of Year 2000 compliance will be material and anticipates such costs will be funded out of working capital. At this time, the Company cannot predict the final outcome of the on-going survey and assessment of the outside parties considered important to the Company's business or the ability of such outside parties to achieve Year 2000 Compliance by the end of 1999. -11- 12 Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS - ------ --------------------------------------------------- The annual meeting of shareholders of the Registrant was held on June 29, 1999. At the meeting, each of the directors of the Registrant was elected to serve until the next annual meeting of shareholders until his successor is elected and qualified. The following table shows the results of the voting at the meeting.
Withheld Name of Nominee For Authority --------------- --- --------- Dr. William H. Duerig 2,266,371 4,309 Donald W. Hedges 2,266,371 4,309 Nicholas D. Trbovich, Jr. 2,266,588 4,092 Dr. Nicholas D. Trbovich 2,266,588 4,092
FORWARD-LOOKING STATEMENTS In addition to historical information, certain sections of this Form 10-QSB contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, such as those pertaining to the Company's capital resources and profitability. Forward-looking statements involve numerous risks and uncertainties. The Company derives a material portion of its revenues from contracts with agencies of the U.S. Government or their prime contractors. The Company's business is performed under fixed price contracts and the following factors, among others discussed herein, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: uncertainties in today's global economy and global competition, difficulty in predicting defense appropriations, the vitality and ability of the commercial aviation industry to purchase new aircraft, the willingness and ability of the Company's customers to fund long-term purchase programs, and market demand and acceptance both for the Company's products and its customers' products which incorporate company-made components. The success of the Company also depends upon the trends of the economy, including interest rates, income tax laws, governmental regulation, legislation, population changes and those risk factors discussed elsewhere in this Form 10-QSB. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management's analysis only as of the date hereof. The Company assumes no obligation to update forward-looking statements. -12- 13 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. Date: August 12, 1999 SERVOTRONICS, INC. By: /s/Lee D. Burns, Treasurer ----------------------------------------- Lee D. Burns, Treasurer and Chief Financial Officer By: /s/Raymond C. Zielinski, Vice President ----------------------------------------- Raymond C. Zielinski, Vice President -13- EX-27 2 EXHIBIT 27
5 1,000 6-MOS DEC-31-1999 JAN-01-1999 JUN-30-1999 1,083 0 2,540 0 9,728 15,429 7,211 0 23,262 2,646 6,824 0 0 523 13,038 23,262 0 8,205 5,753 7,794 0 0 159 411 164 247 0 0 (75) 172 $0.10 $0.10
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