-----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, I+qClE2ECozneizE4j8nVuj7l/DxEztz9m2mrxHbW3/ArUO5zpiWNr+jaLL16Lw5 bDJLCeqS3UVX0V3B/UZugA== 0000950137-96-001321.txt : 19960812 0000950137-96-001321.hdr.sgml : 19960812 ACCESSION NUMBER: 0000950137-96-001321 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960809 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: ANTEC CORP CENTRAL INDEX KEY: 0000908610 STANDARD INDUSTRIAL CLASSIFICATION: RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663] IRS NUMBER: 363892082 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-22336 FILM NUMBER: 96607578 BUSINESS ADDRESS: STREET 1: 2850 W GOLF RD STREET 2: SUITE 600 CITY: ROLLING MEADOWS STATE: IL ZIP: 60008 BUSINESS PHONE: 8474394444 MAIL ADDRESS: STREET 1: 2850 W GOLF ROAD CITY: ROLLING MEADOWS STATE: IL ZIP: 60008 10-Q 1 FORM 10-Q DATED JUNE 30, 1996 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES - --- EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1996 ___ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 0-22336 ------- ANTEC CORPORATION (Exact name of registrant as specified in its charter) Delaware 36-3892082 - -------- ---------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization Identification No.) 2850 W. Golf Road Rolling Meadows, IL 60008 (847)439-4444 (Address, including zip code and telephone number, including area code, of registrant's principal executive offices) Indicate by check mark 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 ----- ---- At July 31, 1996, there were 22,899,132 shares of Common Stock, $0.01 par value, of the registrant outstanding. 2 PART I. FINANCIAL INFORMATION ANTEC CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands) June 30, December 31, 1996 1995 ----------- ------------- (Unaudited) ASSETS Current assets: Cash and cash equivalents $1,012 $979 Accounts receivable (net of allowance for doubtful accounts of $2,157 in 1996 and $1,956 in 1995) 105,291 106,547 Inventories, primarily finished goods 112,915 122,231 Other current assets 3,160 2,477 -------- -------- Total current assets 222,378 232,234 Property, plant and equipment, net 26,036 25,937 Goodwill (net of accumulated amortization of $29,366 in 1996 and $26,877 in 1995) 169,326 171,815 Deferred income taxes, net 13,499 13,824 Other assets 10,086 13,108 -------- -------- $441,325 $456,918 ======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: Accounts payable $50,898 $63,482 Accrued compensation, benefits and related taxes 16,137 15,899 Other current liabilities 21,033 22,395 -------- -------- Total current liabilities 88,068 101,776 Long-term debt 110,164 117,920 -------- -------- Total liabilities 198,232 219,696 Stockholders' equity: Preferred stock, par value $1.00 per share, 5 million shares authorized, none issued and outstanding --- --- Common stock, par value $0.01 per share, 50 million shares authorized; 22.9 million shares issued and outstanding in 1996 and 1995 229 229 Capital in excess of par value 217,401 217,013 Retained earnings 25,762 20,194 Cumulative translation adjustments (299) (214) -------- -------- Total stockholders' equity 243,093 237,222 -------- -------- $441,325 $456,918 ======== ========
See accompanying notes to the consolidated financial statements. 2 3 ANTEC CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except share data)
Three months ended Six months ended June 30 June 30 ------------------- ------------------- 1996 1995 1996 1995 ---- ----- ---- ---- Net sales $162,784 $165,332 $325,176 $324,179 Cost of sales 124,522 127,704 249,104 245,618 -------- -------- -------- -------- Gross profit 38,262 37,628 76,072 78,561 Operating expenses: Selling, general and administrative expenses 28,474 30,625 56,854 59,045 Amortization of goodwill 1,245 1,185 2,489 2,366 ------ ------- -------- -------- 29,719 31,810 59,343 61,411 ------- ------ -------- -------- Operating income 8,543 5,818 16,729 17,150 Interest expense and other, net 2,216 2,834 4,918 5,692 ------- ------ -------- ------- Income before income taxes 6,327 2,984 11,811 11,458 Income tax expense 3,321 1,902 6,243 5,982 ------- ------ ----- ----- Net income $3,006 $1,082 $5,568 $5,476 ======= ====== ====== ====== Net income per common and common equivalent share $.13 $.05 $.24 $.24 ======= ======= ===== ==== Weighted average common and common equivalent shares 23,499 23,077 23,514 23,064 ====== ====== ====== =======
See accompanying notes to the consolidated financial statements. 3 4 ANTEC CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands)
Six months ended June 30 -------------------- 1996 1995 ---- ---- Operating activities: Net income $5,568 $5,476 Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation and amortization 6,318 5,659 Changes in operating assets and liabilities net of effects of acquisitions: Accounts receivable 1,256 (21,128) Inventories 9,316 (13,286) Accounts payable and accrued liabilities (13,735) 8,119 Other, net 467 452 --------- -------- Net cash provided (used) by operating activities 9,190 (14,708) Investing activities: Purchases of property, plant and equipment (3,333) (8,105) Other 1,549 (1,867) --------- -------- Net cash used by investing activities (1,784) (9,972) --------- -------- Net cash provided (used) before financing activities 7,406 (24,680) Financing activities: Borrowings 117,995 77,941 Reductions in borrowings (125,756) (52,272) Proceeds from issuance of common stock 388 933 --------- -------- Net cash provided (used) by financing activities (7,373) 26,602 --------- -------- Net increase in cash and cash equivalents 33 1,922 Cash and cash equivalents at beginning of period 979 835 --------- -------- Cash and cash equivalents at end of period $1,012 $2,757 ========= ======== Supplemental cash flow information: Interest paid during the period $4,089 $5,424 ========= ======== Income taxes paid during the period $5,735 $8,490 ========= ========
See accompanying notes to the consolidated financial statements. 4 5 ANTEC CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 1. BASIS OF PRESENTATION The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements included in ANTEC Corporation's (the "Company" or "ANTEC") Annual Report on Form 10-K for the year ended December 31, 1995. The consolidated financial information furnished herein reflects all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary for a fair presentation of the consolidated financial statements for the periods shown. 5 6 ANTEC CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS COMPARISON OF OPERATIONS FOR THE SIX AND THREE MONTHS ENDED JUNE 30, 1996 AND 1995 Net Sales. Net sales for the six and three month periods ended June 30, 1996 were $325.2 million and $162.8 million, respectively, compared to $324.2 million and $165.3 million for the same periods in 1995. 1996 sales reflect international sales growth offset by continued softness in the domestic cable TV market. Gross Profit. Gross profit for the six and three month periods ended June 30, 1996 was $76.1 million and $38.3 million, respectively, compared to $78.6 million and $37.6 million for the same periods in 1995. Gross profit as a percentage of net sales for the six and three month periods ended June 30, 1996 was 23.4% and 23.5%, respectively, compared to 24.2% and 22.8% for the same periods in 1995. The six month period of 1995 was favorably impacted by additional service fees received in the first quarter of that year. The improved gross profit percentage for the three month period ended June 30, 1996 is a result of product mix, notably an increase in ANTEC manufactured product sales. Selling, General and Administrative ("SG&A") Expenses. SG&A expenses for the six and three month periods ended June 30, 1996 were $56.9 million and $28.5 million, respectively, compared to $59.0 million and $30.6 million for the same periods in 1995. This represents decreases of 3.7% and 7.0% for the six and three month periods, respectively. These reductions primarily reflect the impact of ANTEC's reorganized management structure. Interest Expense and Other, Net. Interest expense and other, net for the six and three month periods ended June 30, 1996 was $4.9 million and $2.2 million, respectively, compared to $5.7 million and $2.8 million for the same periods in 1995. These decreases primarily relate to decreased debt levels resulting from an improved working capital position, driven largely by a significant reduction in inventory levels and, to a lesser extent, a lower average interest rate under the Company's credit facility. Net Income. Net income for the six and three month periods ended June 30, 1996 was $5.6 million and $3.0 million, respectively, compared to $5.5 million and $1.1 million for the same periods in 1995. These increases are due to the factors described above. 6 7 ANTEC CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CON'T.) FINANCIAL LIQUIDITY AND CAPITAL RESOURCES As of June 30, 1996, the Company had a balance of $107.5 million outstanding and had approximately $62 million of available borrowings under its credit facility. The average interest rate on these borrowings was 6.5% at June 30, 1996. The commitment fee on unused borrowings is approximately 1/4 of 1%. The Company's capital expenditures were $3.3 million and $8.1 million for the six months ended June 30, 1996 and 1995, respectively. 1995 capital expenditures consisted primarily of planned sales office and warehouse improvements and expansion. The Company has no significant commitments for capital expenditures at June 30, 1996. As of June 30, 1996, approximately $3 million of the Company's 1995 non-recurring charge had yet to be utilized. It is currently anticipated that the remaining balance will be expended by the end of 1996, except for amounts related to long-term property lease commitments. The Company's primary need for capital is to fund working capital requirements, primarily accounts receivable and inventory. The accounts receivable component of working capital tends to fluctuate closely with the overall volume of sales activity. Reflecting sales fluctuations, the investment in accounts receivable (decreased) increased approximately ($1.3) million and $21.1 million in 1996 and 1995, respectively. The Company has generally been able to adjust inventory levels according to anticipated business activity. 1996 inventory levels decreased in the first half of the year resulting from the Company's continued efforts to control inventory levels. Reflecting an anticipated increase in sales, investment in inventory increased significantly in the six months ended June 30, 1995. CASH FLOW Cash flows provided (used) by operating activities were $9.2 million and ($14.7) million for the six months ended June 30, 1996 and 1995, respectively. 1996 reflects the Company's improved working capital position including its continued effort to control inventory. 1995 reflects an increase in working capital investments required to support the increased sales activity. Cash flows used by investing activities were $1.8 million and $10.0 million for the six months ended June 30, 1996 and 1995, respectively. 1995 includes the impact of planned sales and warehouse improvements. Cash flows (used) provided by financing activities were ($7.4) million and $26.6 million for the six months ended June 30, 1996 and 1995, respectively. Both periods reflect their respective trends in working capital investments. 7 8 PART II. OTHER INFORMATION Item 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits None (b) Reports on Form 8-K None 8 9 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. ANTEC CORPORATION Dated: August 9, 1996 By: /s/ Lawrence A. Margolis ----------------------------- Lawrence A. Margolis Executive Vice President (Principal Financial Officer, duly authorized to sign on behalf of the registrant) 9 EX-27 2 FINANCIAL DATA SCHEDULE
5 1,000 3-MOS DEC-31-1996 APR-01-1996 JUN-3-1996 1,012 0 105,291 2,157 112,915 222,378 26,036 19,851 441,325 88,068 110,164 229 0 0 242,864 441,325 162,784 162,784 124,522 124,52 29,719 0 2,216 6,327 3,321 3,006 0 0 0 3,006 .13 .13
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