-----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, Tkh8MxOheDwnF7PsJ9AG0XRdjtHsy4a9MvFpeAtmmInAjjDo1vxaeQMb8iOmB1WJ vMuTPEtVMszhwl+kwHCQqQ== 0000090045-98-000009.txt : 19980720 0000090045-98-000009.hdr.sgml : 19980720 ACCESSION NUMBER: 0000090045-98-000009 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980531 FILED AS OF DATE: 19980714 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: SI HANDLING SYSTEMS INC CENTRAL INDEX KEY: 0000090045 STANDARD INDUSTRIAL CLASSIFICATION: CONSTRUCTION, MINING & MATERIALS HANDLING MACHINERY & EQUIP [3530] IRS NUMBER: 221643428 STATE OF INCORPORATION: PA FISCAL YEAR END: 0225 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-03362 FILM NUMBER: 98665623 BUSINESS ADDRESS: STREET 1: 600 KUBLER ROAD CITY: EASTON STATE: PA ZIP: 18044-0070 BUSINESS PHONE: 6102527321 MAIL ADDRESS: STREET 1: P O BOX 70 CITY: EASTON STATE: PA ZIP: 18040 10-Q 1 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Quarterly Period Ended May 31, 1998 Commission File No. 0-3362 SI HANDLING SYSTEMS, INC. - -------------------------------------------------------------------------------- (Exact Name Of Registrant As Specified In Its Charter) Pennsylvania 22-1643428 (State Or Other Jurisdiction Of (I.R.S. Employer Incorporation Or Organization) Identification No.) 600 Kuebler Road, Easton, PA 18040 (Address Of Principal Executive Offices) (Zip Code) Registrant's Telephone Number, Including Area Code: 610-252-7321 Indicate by checkmark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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 --- --- Number of shares of common stock, par value $1.00 per share, outstanding as of May 31, 1998: 3,726,300. --------- PART I - FINANCIAL INFORMATION Item 1. Financial Statements - ------ -------------------- SI Handling Systems, Inc. Balance Sheets (In Thousands, Except Share Data)
May March Assets 31, 1998 1, 1998 - ------ -------- -------- Current assets: Cash and cash equivalents, principally time deposits $ 2,766 752 Short-term investments - - ------ ------ Total cash, cash equivalents, and short-term investments 2,766 752 ------ ------ Receivables: Trade 6,149 8,830 Notes and other receivables 129 51 ------ ------ Total receivables 6,278 8,881 ------ ------ Costs and estimated earnings in excess of billings 4,759 6,774 Inventories: Raw materials 975 920 Finished goods and work-in-process 1,743 1,578 ------ ------ Total inventories 2,718 2,498 ------ ------ Deferred income tax benefits 435 435 Prepaid expenses and other current assets 119 162 ------ ------ Total current assets 17,075 19,502 ------ ------ Property, plant and equipment, at cost: Land 27 27 Buildings and improvements 3,387 3,387 Machinery and equipment 4,216 4,180 ------ ------ 7,630 7,594 Less: accumulated depreciation 6,231 6,131 ------ ------ Net property, plant and equipment 1,399 1,463 ------ ------ Deferred income tax benefits 175 175 Investment in joint venture 1,037 1,027 Other assets, at cost less accumulated amortization of $80 in 1999 and $78 in 1998 50 52 ------ ------ Total assets $19,736 22,219 ====== ======
See accompanying notes to financial statements. - 2 - Item 1. Financial Statements (Continued) - ------ -------------------- SI Handling Systems, Inc. Balance Sheets (In Thousands, Except Share Data)
May March Liabilities and Stockholders' Equity 31, 1998 1, 1998 - ------------------------------------ -------- -------- Current liabilities: Revolving credit loan payable to bank $ - 1,000 Current installments of long-term debt 8 8 Accounts payable 1,872 4,044 Customers' deposits and billings in excess of costs and estimated earnings 3,715 2,218 Accrued salaries, wages, and commissions 615 1,495 Income taxes payable 380 380 Accrued royalties payable 188 432 Accrued other liabilities 1,239 960 ------ ------ Total current liabilities 8,017 10,537 ------ ------ Long-term liabilities: Long-term debt, excluding current installments: Mortgage payable 25 26 ------ ------ Total long-term debt 25 26 Deferred compensation 190 190 ------ ------ Total long-term liabilities 215 216 ------ ------ Stockholders' equity: Common stock, $1 par value; authorized 20,000,000 shares; issued 3,726,300 shares in 1999 and 3,711,826 shares in 1988 3,726 3,712 Additional paid-in capital 2,738 2,645 Retained earnings 5,040 5,109 ------ ------ Total stockholders' equity 11,504 11,466 ------ ------ Total liabilities and stockholders' equity $19,736 22,219 ====== ======
See accompanying notes to financial statements. - 3 - Item 1. Financial Statements (Continued) - ------ -------------------- SI Handling Systems, Inc. Statements of Operations (In Thousands, Except Share And Per Share Data)
Three Months Ended -------------------------- May June 31, 1998 1, 1997 ---------- -------- Net sales $ 8,800 9,542 Cost of sales 6,487 7,322 --------- ------- Gross profit on sales 2,313 2,220 --------- ------- Selling, general and administrative expenses 1,668 1,487 Product development costs 119 82 Interest expense 2 2 Interest income (45) (67) Equity in income of joint venture (10) (104) Other income, net (33) (93) --------- --------- 1,701 1,307 --------- --------- Earnings before income taxes 612 913 Income tax expense 235 357 --------- --------- Net earnings $ 377 556 ========= ========= Basic earnings per share* $ .10 .15 ========= ========= Diluted earnings per share* $ .10 .15 ========= ========= Cash dividends per share** $ .10 .07 ========= ========= Average shares outstanding 3,715,445 3,693,740 Dilutive effect of stock options 35,853 51,831 Dilutive effect of phantom stock units 9,499 5,573 --------- --------- Average shares outstanding assuming dilution 3,760,797 3,751,144 ========= ========= * On October 14, 1997, the Board of Directors declared a three-for-two stock split that was distributed on November 10, 1997 to shareholders of record on October 27, 1997. Basic earnings per share for all periods presented reflect the three-for- two stock split and are based on the weighted average number of shares outstanding. Diluted earnings per share for all periods presented reflect the three- for-two stock split and are based on the weighted average number of shares outstanding and equivalent shares from dilutive stock options and phantom stock units. ** Dividends per share for the three months ended June 1, 1997 were adjusted for the three-for-two stock split that was distributed on November 10, 1997 to shareholders of record on October 27, 1997.
See accompanying notes to financial statements. - 4 - Item 1. Financial Statements (Continued) - ------ -------------------- SI Handling Systems, Inc. Statements of Cash Flows (In Thousands, Except Share Data)
Three Months Ended ------------------------ May June 31, 1998 1, 1997 -------- -------- Cash flows from operating activities: Net earnings $ 377 556 Adjustments to reconcile net earnings to net cash provided (used) by operating activities: Depreciation of plant and equipment 100 87 Amortization of intangibles 2 3 Equity in income of joint venture (10) (104) Change in operating assets and liabilities: Receivables 2,603 397 Costs and estimated earnings in excess of billings 2,015 (3,413) Inventories (220) (111) Prepaid expenses and other current assets 43 (35) Other noncurrent assets - (4) Accounts payable (2,172) 359 Customers' deposits and billings in excess of costs and estimated earnings 1,497 (236) Accrued salaries, wages, and commissions (880) (129) Income taxes payable - 96 Accrued royalties payable (244) (289) Accrued other liabilities (93) (294) Deferred compensation - 8 ------ ------ Net cash provided (used) by operating activities 3,018 (3,109) ------ ------ Cash flows from investing activities: Sales of short-term investments - 3,741 Purchase of short-term investments - (1,472) Additions to property, plant and equipment (36) (75) ------ ------ Net cash provided (used) by investing activities (36) 2,194 ------ ------
See accompanying notes to financial statements. - 5 - Item 1. Financial Statements (Continued) SI Handling Systems, Inc. Statements of Cash Flows (Continued) (In Thousands, Except Share Data)
Three Months Ended ------------------------ May June 31, 1998 1, 1997 -------- -------- Cash flows from financing activities: Sale of common shares in connection with employee incentive stock option plan 33 42 Repayment of long-term debt (1) (4) Dividends paid on common stock - (247) Repayment of revolving credit loan payable to bank (1,000) - ------ ------ Net cash used by financing activities (968) (209) ------ ------ Increase (decrease) in cash and cash equivalents 2,014 (1,124) Cash and cash equivalents, beginning of period 752 1,852 ------ ------ Cash and cash equivalents, end of period $ 2,766 728 ====== ====== Supplemental disclosures of cash flow information: Cash paid during the period for: Interest $ 3 1 ====== ====== Income taxes $ 235 261 ====== ====== Supplemental disclosures of noncash financing activities: Cash dividends declared in May but payable in June $ 372 - ====== ====== Issuance of 14,886 common shares in exchange for 5,978 common shares delivered to the Company by officers in connection with the employee incentive stock option plan $ 74 - ====== ====== Issuance of 8,475 common shares in exchange for 3,785 common shares delivered to the Company by officers in connection with the employee incentive stock option plan $ - 43 ====== ======
See accompanying notes to financial statements. - 6 - Item 1. Financial Statements (Continued) - ------ -------------------- SI Handling Systems, Inc. Notes To Financial Statements Three Months Ended May 31, 1998 and June 1, 1997 (1) The information contained in this 10-Q report is unaudited and is subject to year-end adjustments and audit. However, in the opinion of management, the interim financial statements furnished reflect all adjustments and accruals which are necessary to a fair statement of results for the interim periods presented. SI Handling Systems, Inc. ("SI" or the "Company") and Automated Prescription Systems, Inc. ("APS") are co-venturers in a joint venture named SI/BAKER, INC. ("SI/BAKER" or the "joint venture"). The joint venture draws upon the automated materials handling systems experience of SI and the automated pill counting and dispensing products of APS to provide automated pharmacy systems. Each member company contributed $100,000 in capital to fund the joint venture. The joint venture designs and installs computer controlled, fully automated, integrated systems for managed care pharmacy operations. The joint venture's systems are viewed as labor saving devices which address the issues of improved productivity and cost reduction. Systems can be expanded as customers' operations grow and they may be integrated with a wide variety of components to meet specific customer needs. Schedule A contains the SI/BAKER, INC. financial statements. The information contained in the SI/BAKER, INC. financial statements is unaudited and is subject to year-end adjustments and audit. However, in the opinion of management, the interim financial statements furnished reflect all adjustments and accruals which are necessary to a fair statement of results for the interim periods presented. Item 2. Management's Discussion and Analysis of Financial - ------ ------------------------------------------------- Condition and Results of Operations ----------------------------------- Liquidity And Capital Resources - ------------------------------- The Company's cash and cash equivalents increased to $2,766,000 during the first three months of fiscal 1999 from $752,000 at the end of fiscal 1998. The increase resulted from cash provided by operating activities totaling $3,018,000 and proceeds of $33,000 from the sale of common stock in connection with the employee incentive stock option plan. Partially offsetting the increase in cash and cash equivalents from these sources were the repayments of long-term debt of $1,000 and the revolving credit loan payable to bank of $1,000,000, and purchases of capital equipment of $36,000. Funds used by operating activities during the first three months of fiscal 1998 were $3,109,000. - 7 - Item 2. Management's Discussion and Analysis of Financial - ------ ------------------------------------------------- Condition and Results of Operations ----------------------------------- Liquidity and Capital Resources (Continued) - ------------------------------- The Company has a $5,000,000 committed revolving credit facility which is secured by a lien position on accounts receivable, land, and buildings and contains various restrictive covenants relating to additional indebtedness, asset acquisitions or dispositions, and maintenance of certain financial ratios. The Company was in compliance with all covenants during the first three months of fiscal 1999. Currently, the committed revolving credit facility has an expiration date of August 31, 2000. The Company repaid its outstanding debt under the committed revolving credit facility on March 2,1998, and the Company did not have any additional borrowings under the committed revolving credit facility during the first three months of fiscal 1999. On March 4, 1996, SI/BAKER established a $2,500,000 Line of Credit Facility (the "Facility") with its principal bank (the "Bank"). Under terms of the Facility, SI/BAKER's parent companies, SI Handling Systems, Inc. and Automated Prescriptions Systems, Inc., have each provided a limited guarantee and surety in an amount not to exceed $1,000,000 for a combined guarantee of $2,000,000 to the Bank for the payment and performance of the related note, including any further renewals or modifications of the Facility. During fiscal 1998, the Bank increased the borrowing availability to $3,000,000 and extended the expiration date of the Facility. As of May 31, 1998, SI/BAKER's related debt outstanding under the Facility was $900,000. SI/BAKER intends to satisfy the note and thereby release the parent company guarantees during the second quarter of fiscal 1999. The Facility has an expiration date of August 31, 1998. On October 14, 1997, the Board of Directors of the Company declared a three-for-two stock split that was distributed on November 10, 1997 to the shareholders of record on October 27, 1997. The purpose of the stock split was to increase the number of outstanding shares and broaden ownership and availability of the Company's common stock. The Company anticipates that its financial resources consisting of its current assets, anticipated cash flow, and the available revolving credit facility will adequately finance its operating requirements in the foreseeable future. The Company plans to consider expansion opportunities as they arise, although ongoing operating results of the Company, the economics of the expansion, and the circumstances justifying the expansion will be key factors in determining the amount of resources the Company will devote to further expansion. At this time, the Company does not have any material capital commitments. - 8 - Item 2. Management's Discussion and Analysis of Financial - ------ ------------------------------------------------- Condition and Results of Operations ----------------------------------- Results Of Operations - --------------------- Three Months Ended May 31, 1998 versus Three Months Ended June 1, - ----------------------------------------------------------------- 1997 - ---- The Company's net earnings for the first three months of fiscal 1999 were $377,000 compared to net earnings of $556,000 for the first three months of fiscal 1998. Backlog at the end of the first three months of fiscal 1999 was $25,976,000 with approximately 81% of the backlog pertaining to Switch-Cart and Dispen-SI-matic contracts. During the first three months of fiscal 1999, the Company received orders totaling approximately $12,700,000. The largest order received during the first quarter of fiscal 1999, totaling approximately $4,500,000, engages the Company to develop an integrated order fulfillment system to handle foreign currency orders for international travelers. This project is anticipated to be completed during the second half of fiscal 1999. Net sales of $8,800,000 for the first three months of fiscal 1999 decreased 7.8% compared to net sales of $9,542,000 for the first three months of fiscal 1998. The sales decrease in the first three months of fiscal 1999 is attributed primarily to a smaller backlog of orders entering fiscal 1999 ($22,092,000 versus a $31,029,000 backlog beginning fiscal 1998). During the first quarter of fiscal 1999, Order Selection sales of approximately $2,400,000 declined approximately $2,900,000 from the prior year comparable period due to delays in earlier periods by prospective customers in signing contracts often caused by expanding project scope or contractual negotiations. Partially offsetting the decline in Order Selection sales during the first quarter of fiscal 1999 was an increase in sales of approximately $2,200,000 across the Company's other products lines, with the majority of the increase relating to sales of the Company's Switch-Cart, Cartrac, and Sortation product lines. Gross profit as a percentage of sales was 26.3% for the first three months of fiscal 1999 compared to 23.3% for the first three months of fiscal 1998. The attainment of the higher gross profit percentage during the first three months of fiscal 1999 was primarily attributable to the favorable performance on several contracts, principally for the Company's higher margin proprietary products, initiated in the prior fiscal year that were nearing completion during the first three months of fiscal 1999. The lower gross profit percentage during the first three months of fiscal 1998 was primarily attributable to a higher content of ancillary products with lower margins than contracts containing a higher degree of higher margin proprietary products. Selling, general, and administrative expenses of $1,668,000 were higher by $181,000 in the first three months of fiscal 1999 than in the comparable fiscal 1998 period. The increase in selling, general, and administrative - 9 - Item 2. Management's Discussion and Analysis of Financial - ------ ------------------------------------------------- Condition and Results of Operations ----------------------------------- Results Of Operations - --------------------- Three Months Ended May 31, 1998 versus Three Months Ended June 1, - ----------------------------------------------------------------- 1997 (Continued) - ---- expenses is primarily attributable to costs associated with product promotion and sales efforts aimed at expanding the Company's customer base of business consistent with the Company's strategic plan to grow the business as a systems integrator. Product development costs of $119,000 were higher by $37,000 in the first three months of fiscal 1999 than in the comparable fiscal 1998 period. Development programs in the first three months of fiscal 1999 included enhancements to the Company's product controls and features and improvements to the Sortation and Order Selection product lines, with particular emphasis aimed at the controls platform for Dispen-SI-matic Systems. Development programs in the first three months of fiscal 1998 included efforts directed at improvements across various product lines, and efforts associated with the introduction of the Henke light-duty overhead transportation product. Interest income of $45,000 was lower by $22,000 in the first three months of fiscal 1999 than in the comparable fiscal 1998 period. The decrease in interest income is primarily attributable to the lower level of funds available for short-term investments during the first three months of fiscal 1999. Equity in income of joint venture represented the Company's proportionate share of its investment in SI/BAKER which is being accounted for under the equity method. The unfavorable variance of $94,000 for the first three months of fiscal 1999 in the equity in income of joint venture was attributable to SI/BAKER's decline in revenues to approximately $2,100,000 as compared to the comparable fiscal 1998 period of approximately $4,700,000. The sales decrease in fiscal 1999 was primarily attributable to a smaller backlog of orders entering fiscal 1999 versus a larger backlog of orders at the beginning of fiscal 1998. Fiscal 1998 revenues were favorably impacted by performance on contracts wherein customer specifications required systems to be commercially operable by the end of fiscal 1998. Partially offsetting the unfavorable variance were SI/BAKER's decreases of (1) $105,000 in revenue based royalty costs due to the parent companies and (2) $57,000 in selling, general, and administrative expenses for those expenses based on revenue and profit performance. The unfavorable variance of $60,000 in other income, net, is primarily attributable to a decrease of $53,000 in royalty income related to the SI/BAKER joint venture. The Company incurred income tax expense of $235,000 during the first three months of fiscal 1999 compared to income tax expense of $357,000 in the comparable fiscal 1998 period. Income tax expense was generally recorded at statutory federal and state tax rates expected to apply for each fiscal year. - 10 - Item 2. Management's Discussion and Analysis of Financial - ------ ------------------------------------------------- Condition and Results of Operations ----------------------------------- Year 2000 - --------- The Year 2000 issue relates to the inability of computer systems, microprocessors, and other electronic devices to deal appropriately with dates on or after January 1, 2000. The Company has assembled a team of internal staff to oversee the matter and is underway in completing its Year 2000 assessment. The Company has upgraded its internal business system to address the Year 2000 issue and has initiated discussions with its suppliers, financial institutions, and other organizations to ensure that those parties have appropriate plans to remediate Year 2000 issues where their systems impact the Company's operations. The scheduled completion date for the Company's efforts to address the Year 2000 issue is July 1999. Management presently believes that the Year 2000 issue will not have a material impact on the Company's earnings or its ability to conduct its business. However, there can be no assurance that the systems of other organizations that impact the Company's operations also will be made compliant or that any such failure in compliance by another company would not have an adverse effect on the Company's operations. Cautionary Statement - -------------------- Certain statements contained herein are not based on historical fact and are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Among other things, they regard the Company's earnings, liquidity, financial condition, and certain operational matters. Words or phrases denoting the anticipated results of future events, such as "anticipate," "believe," "estimate," "expect," "may," "will likely," "are expected to," "will continue," "project," and similar expressions that denote uncertainty, are intended to identify such forward-looking statements. The Company's actual results, performance, or achievements could differ materially from the results expressed in, or implied by, such "forward-looking statements": (1) as a result of risks and uncertainties identified in connection with those forward-looking statements, including those factors identified herein, and in the Company's other publicly filed reports; (2) as a result of factors over which the Company has no control, including the strength of domestic and foreign economies, sales growth competition, and certain cost increases; or (3) if the factors on which the Company's conclusions are based do not conform to the Company's expectations. PART II - OTHER INFORMATION --------------------------- Item 6. Exhibits and Reports on Form 8-K - ------ -------------------------------- (a) Exhibit 27 - Financial Data Schedule. (b) No reports on Form 8-K were filed during the quarter ended May 31, 1998. - 11 - SI Handling Systems, Inc. SIGNATURE 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. SI HANDLING SYSTEMS, INC. /S/ Barry V. Mack Barry V. Mack Vice President - Finance (Principal Financial Officer) Dated: July 14, 1998 ------------- - 12 - Schedule A SI/BAKER, INC. Financial Statements May 31, 1998 - 13 - SI/BAKER, INC. Balance Sheets May 31, 1998 and February 28, 1998 (In Thousands, Except Share Data)
May February 31, 1998 28, 1998 -------- -------- Assets - ------ Current assets: Cash and cash equivalents, principally time deposits $ 226 388 Receivables: Trade 1,545 2,881 Other receivables - 51 ----- ----- Total receivables 1,545 2,932 ----- ----- Costs and estimated earnings in excess of billings 3,929 3,263 Inventories - 118 Deferred income tax benefits 309 309 Prepaid expenses and other current assets 181 18 ----- ----- Total current assets 6,190 7,028 ----- ----- Machinery and equipment, at cost 150 125 Less: accumulated depreciation 72 64 ----- ----- Net machinery and equipment 78 61 ----- ----- Equipment leased to customer 487 487 Less: accumulated depreciation 279 249 ----- ----- Net equipment leased to customer 208 238 ----- ----- Deferred income tax benefits 35 35 ----- ----- Other assets 86 57 ----- ----- Total assets $ 6,597 7,419 ===== =====
- 14 - SI/BAKER, INC. Balance Sheets May 31, 1998 and February 28, 1998 (In Thousands, Except Share Data)
May February 31, 1998 28, 1998 -------- -------- Liabilities and Stockholders' Equity - ------------------------------------ Current liabilities: Note payable to bank $ 900 900 Accounts payable: Trade 806 930 Affiliated companies 248 97 ----- ----- Total accounts payable 1,054 1,027 ----- ----- Customers' deposits and billings in excess of costs and estimated earnings 1,259 1,740 Accrued salaries, wages, and commissions 52 413 Income taxes payable - 44 Accrued royalties payable 289 288 Accrued product warranties 823 799 Accrued other liabilities 35 43 ----- ----- Total current liabilities 4,412 5,254 ----- ----- Deferred compensation 111 111 ----- ----- Stockholders' equity: Common stock, $1 par value; authorized 1,000 shares; issued 200 shares - - Additional paid-in capital 200 200 Retained earnings 1,874 1,854 ----- ----- Total stockholders' equity 2,074 2,054 ----- ----- Total liabilities and stockholders' equity $ 6,597 7,419 ===== =====
- 15 - SI/BAKER, INC. Statements of Operations Three Months Ended May 31, 1998 and 1997 (In Thousands)
Three Months Ended ------------------------ May May 31, 1998 31, 1997 -------- -------- Net sales $ 2,074 4,704 Cost of sales 1,743 3,896 ----- ----- Gross profit on sales 331 808 ----- ----- Selling, general and administrative expenses 204 261 Product development costs - 3 Royalty expense to parent companies 83 188 Interest income (2) (7) Interest expense 14 33 Other income, net (2) (20) ----- ----- 297 458 ----- ----- Earnings before income taxes 34 350 Income tax expense 14 142 ----- ----- Net earnings $ 20 208 ===== =====
- 16 - SI/BAKER, INC. Statements of Cash Flows Three Months Ended May 31, 1998 and 1997 (In Thousands)
Three Months Ended ------------------------ May May 31, 1998 31, 1997 -------- -------- Cash flow from operating activities: Net earnings $ 20 208 Adjustments to reconcile net earnings to net cash used by operating activities: Depreciation of machinery and equipment and leased equipment 38 35 Changes in operating assets and liabilities: Receivables 1,387 (1,749) Costs and estimated earnings in excess of billings (666) (1,640) Inventories 118 (8) Prepaid expenses and other current assets (163) (3) Other assets (29) - Accounts payable 27 373 Customers' deposits and billings in excess of costs and estimated earnings (481) 2,380 Accrued salaries, wages, and commissions (361) (54) Income taxes payable (44) 107 Accrued royalties payable 1 17 Accrued product warranties 24 90 Accrued other liabilities (8) 186 ----- ----- Net cash used by operating activities (137) (58) ----- ----- Cash flows used in investing activities: Additions to machinery and equipment (25) (8) ----- ----- Net cash used by investing activities (25) (8) ----- -----
- 17 - SI/BAKER, INC. Statements of Cash Flows (Continued) Three Months Ended May 31, 1998 and 1997 (In Thousands)
Three Months Ended ------------------------ May May 31, 1998 31, 1997 -------- -------- Decrease in cash and cash equivalents (162) (66) Cash and cash equivalents, beginning of period 388 484 ----- ----- Cash and cash equivalents, end of period $ 226 418 ===== ===== Supplemental disclosure of cash flow information: Cash paid during the period for: Income taxes $ 207 37 ===== ===== Interest $ 20 30 ===== =====
- 18 - SI HANDLING SYSTEMS, INC. FORM 10-Q EXHIBIT INDEX ------------- Exhibit No. - ---------- 27 Financial Data Schedule. - 19 - EX-27 2 ART. 5 FDS FOR 1ST QUARTER 10-Q
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-Q FOR THE QUARTER ENDED MAY 31, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000090045 SI HANDLING SYSTEMS, INC. 1,000 3-MOS FEB-28-1999 MAY-31-1998 2,766 0 6,149 0 2,718 17,075 7,630 6,231 19,736 8,017 25 0 0 3,726 7,778 19,736 8,800 8,800 6,487 6,487 0 0 2 612 235 377 0 0 0 377 .10 .10
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