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GREENBERG TRAURIG HOFFMAN LIPOFF ROSEN & QUENTEL
200 PARK AVENUE
NEW YORK, NEW YORK 10166
Spencer G. Feldman
212-801-9221
June 10, 1998
VIA EDGAR
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Compass Plastics & Technologies, Inc. (File No. 0-23027)
Form 12b-25 Relating to the Company's Quarterly Report
on Form 10-Q for the Quarterly Period ended April 26, 1998
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Ladies and Gentlemen:
On behalf of Compass Plastics & Technologies, Inc., a Delaware
corporation (the "Company"), we hereby submit in electronic format for filing,
pursuant to Rule 12b-25(a) under the Securities Exchange Act of 1934, as
amended, and Rule 101(a)(1) of Regulation S-T, one complete copy of the
Notification of Late Filing on Form 12b-25 relating to the Company's Quarterly
Report on Form 10-Q for the Quarterly Period ended April 26, 1998.
Kindly address any comments or questions concerning the enclosed
documents to me or to Mr. Paul J. Iacono, the Company's Chief Financial Officer.
Very truly yours,
/s/ Spencer G. Feldman
-----------------------
Spencer G. Feldman
cc: Mr. Paul J. Iacono
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 12b-25
Commission File Number 0-23027
NOTIFICATION OF LATE FILING
(Check One):
[ ] Form 10-K [ ] Form 11-K [ ] Form 20-F [X] Form 10-Q
For Period Ended: April 26, 1998
Nothing in this Form shall be construed to imply that the Commission has
verified any information contained herein.
If the notification relates to a portion of the filing checked above, identify
the Item(s) to which the notification relates:
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- -------------------------------------------------------------------------------
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Part I- Registrant Information
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Full Name of Registrant: Compass Plastics & Technologies, Inc.
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Former Name if Applicable:
Address of Principal Executive Office (Street and Number):
15730 South Figueroa Street
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City, State and Zip Code: Gardena, CA 90248
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Page 1 of 3
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Part II - Rule 12b-25(b)and (c)
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If the subject report could not be filed without unreasonable effort or expense
and the registrant seeks relief pursuant to Rule 12b-25(b), the following should
be completed. (Check box if appropriate.)
[ ] (a) The reasons described in reasonable detail in Part III of this
form could not be eliminated without unreasonable effort or
expense;
[X] (b) The subject annual report or portion thereof will be filed on or
before the 15th calendar day following the prescribed due date;
or the subject quarterly report or portion thereof will be filed
on or before the fifth calendar day following the prescribed due
date; and
[ ] (c) The accountant's statement or other exhibit required by Rule
12b-25(c) has been attached if applicable.
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Part III - Narrative
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State below in reasonable detail the reasons why Form 10-K, 11-K, 20-F or 10-Q
or portion thereof could not be filed within the prescribed time period.
Not applicable.
Page 2 of 3
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Part IV - Other Information
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(1) Name and telephone number of person to contact in regard to this
notification:
Paul J. Iacono (213) 770-8771
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(Name) (Area Code) (Telephone Number)
(2) Have all other periodic reports required under 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
report(s) been filed? If the answer is no, identify report(s):
[X] Yes [ ] No
(3) Is it anticipated that any significant change in results of operations
from the corresponding period for the last fiscal year will be
reflected by the earnings statements to be included in the subject
report or portion thereof?
[X] Yes [ ] No
If so: attach an explanation of the anticipated change, both
narratively and quantitatively, and, if appropriate, state the reasons
why a reasonable estimate of the results cannot be made.
COMPASS PLASTICS & TECHNOLOGIES, INC.
(Name of Registrant as specified in charter)
has caused this notification to be signed on its behalf by the undersigned
thereunto duly authorized.
Date: June 10, 1998 By: /s/ Paul J. Iacono
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Paul J. Iacono
Vice President - Finance
and Chief Financial Officer
Page 3 of 3
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Part IV - Item (3) - Supplement to Form 12b-25 dated June 10, 1998.
It is anticipated that Compass Plastics & Technologies, Inc. ("Compass") will
report a loss for both the 13 weeks and 26 weeks ended April 26, 1998. Set forth
below is a condensed consolidated statement of operations for the above
mentioned periods. Compass and its wholly owned subsidiaries, AB Plastics
Corporation and MOS Plastics, Inc. (collectively "Borrowers") are currently in
violation of certain financial covenants of its Commercial Loan Agreement ("the
Agreement"), dated as of February 27, 1998, between Borrowers and Sumitomo Bank
of California and Manufacturers Bank (collectively "Lenders"). Based upon
discussions with the Lenders, Compass believes an amendment to the Agreement
retroactive to the loan date will be forthcoming prior to June 15, 1998 which
will restate those certain covenant requirements to levels where the Borrowers
will be in compliance of the Agreement.
COMPASS PLASTICS & TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
13 Weeks Ended 26 Weeks Ended
April 26, April 27, April 26, April 27,
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Revenues:
Sales ........................................ $ 13,119,280 $ 9,853,369 $ 23,907,004 $ 20,244,365
Cost of Goods Sold ........................... 11,771,708 8,011,663 21,206,162 16,393,249
------------ ------------ ------------ ------------
Gross Profit ............................ 1,347,572 1,841,706 2,700,842 3,851,116
------------ ------------ ------------ ------------
Selling, General and Administrative:
Selling Expenses ............................. 219,970 180,438 390,057 294,133
General Administrative ....................... 1,053,724 653,435 1,645,704 1,127,511
Amortization of Goodwill ..................... 153,858 26,587 179,907 34,555
------------ ------------ ------------ ------------
Total Selling, General and Administrative 1,427,552 860,460 2,215,668 1,456,199
------------ ------------ ------------ ------------
Operating Income (Loss) .......................... (79,980) 981,246 485,174 2,394,917
Interest Expense ................................. 624,634 182,753 828,132 451,243
------------ ------------ ------------ ------------
Income (loss) before Income Tax ................. (704,614) 798,493 (342,958) 1,943,674
Provision (benefit) for income taxes ............. (282,343) 316,770 (137,182) 763,770
------------ ------------ ------------ ------------
Income (loss) before extraordinary item .......... ($ 422,271) $ 481,723 ($ 205,776) $ 1,179,904
Extraordinary loss from extinguishment
of indebtedness, net of tax .................. (58,277) -- (58,277) --
------------ ------------ ------------ ------------
Net income (loss) ................................ ($ 480,548) $ 481,723 ($ 264,053) $ 1,179,904
============ ============ ============ ============
Net income (loss) per comon share:
Basic:
Income (loss) before extraordinary loss .... ($ 0.09) $ 0.24 ($ 0.04) $ 0.59
Extraordinary loss ......................... (0.01) -- (0.01) --
------------ ------------ ------------ ------------
Net income (loss) .......................... ($ 0.10) $ 0.24 ($ 0.05) $ 0.59
============ ============ ============ ============
Diluted:
Income (loss) before extraordinary loss .... ($ 0.09) $ 0.13 ($ 0.04) $ 0.33
Extraordinary loss ......................... (0.01) -- (0.01) --
------------ ------------ ------------ ------------
Net income (loss) .......................... ($ 0.10) $ 0.13 ($ 0.05) $ 0.33
============ ============ ============ ============
Weighted average number of shares outstanding:
Primary .................................... 4,883,750 2,000,000 4,883,750 2,000,000
============ ============ ============ ============
Diluted .................................... 4,883,750 3,600,000 4,883,750 3,600,000
============ ============ ============ ============
</TABLE>
