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FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR QUARTER ENDED April 30, 1995 COMMISSION FILE NO. 0-4988
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AEROSONIC CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 74-1668471
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1212 No. Hercules Avenue, Clearwater, Florida 34625
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(Address of principal executive offices) (Zip Code)
(813) 461-3000
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(Registrant's telephone number, including Area Code)
Non applicable
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(Former name, former address and former fiscal year, if changed
since last report)
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
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Securities registered pursuant to Section 12 (g) of the Act.
Common Stock ($.40 par value)
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(Title of Class)
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INDEX
AEROSONIC CORPORATION
<TABLE>
<CAPTION>
Page No.
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<S> <C>
PART I. FINANCIAL INFORMATION
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Item 1. Financial Statements (unaudited)
Condensed Balance Sheets - 2
April 30, 1995 and January 31, 1995
Condensed Statements of Income - 3
Three months ended April 30, 1995 and 1994
Condensed Statements of Cash Flows - 4
Three months ended April 30, 1995 and 1994
Notes to Condensed Financial Statements - 5
April 30, 1995
Item 2. Management's Discussion and Analysis of 6 - 7
Financial Condition and Results of Operations
SIGNATURES 8
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PART II. OTHER INFORMATION
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ITEM 6. Exhibits and Reports on Form 8-K
Exhibit 11 - Computations of Earnings Per Share 9
Exhibit 27 - Financial Data Schedule (for SEC use only)
</TABLE>
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AEROSONIC CORPORATION
Condensed Balance Sheets
<TABLE>
<CAPTION>
(In thousands, except per share data) April 30 January 31
1995 1995
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Assets (unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents 337 573
Receivables:
Trade, less allowance of $57 at 4/95 and 1/95 3,508 3,270
Officers and employees 42 44
Other 85 80
Income tax 276 290
Inventories 6,160 6,026
Prepaid expenses 63 64
Deferred income tax benefit 463 463
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Total current assets 10,934 10,810
Property, plant and equipment
Less allowance for depreciation 6,270 6,112
Other assets 1,035 1,043
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18,239 17,965
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Liabilities and shareholders' equity
Current liabilities:
Current installments of long-term debt 764 817
Accounts payable, trade 1,297 678
Other accrued expenses 828 1,018
Litigation costs 815 815
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Total current liabilities 3,704 3,328
Long-term debt, less current installments 2,966 3,114
Deferred income taxes 465 465
Shareholders' equity:
Common stock, $.40 par; 8,000,000 shares
authorized; 3,986,262 shares issued 1,595 1,595
Additional paid-in capital 3,410 3,407
Retained earnings 6,421 6,392
Less treasury stock, 194,571 shares
at 1/31/95 186,772 shares at 4/30/95 (322) (336)
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Total shareholders equity 11,104 11,058
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18,239 17,965
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</TABLE>
Note: The balance sheet at January 31, 1995 has been derived from the
audited financial statements at this date.
See Notes to Condensed Financial Statements.
2
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AEROSONIC CORPORATION
Condensed Statements of Income (Unaudited)
(In thousands, except per share data)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
APRIL 30
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1995 1994
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<S> <C> <C>
Net sales $5,033 7,357
Cost of goods sold 3,705 5,478
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Gross Profit 1,328 1,879
Selling, general and administrative
expenses 1,215 1,301
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Operating Income 113 578
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Other income (deductions):
Interest expense, net 70 43
Other, net (3) (10)
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67 33
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Income before income taxes 46 545
Income taxes 17 205
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Net Income $ 29 340
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Earnings per share: $ 0.01 0.09
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Weighted average number
of shares outstanding $3,793 3,799
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</TABLE>
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AEROSONIC CORPORATION
Condensed Statements of Cash Flows (Unaudited)
(In Thousands)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
APRIL 30
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1995 1994
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<S> <C> <C>
Cash flows from operating activities:
Net income 29 340
Adjustment to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 181 201
Change in deferred income taxes -- 12
Net increase (decrease) in cash due to
changes in current assets and liabilities 29 (833)
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Net cash provided (used) by operating
activities 239 (280)
Cash flows from investing activities:
Purchase of fixed assets (372) (43)
Proceeds from sale of equipment 37 (15)
Net increase in other assets 8 (144)
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Net cash used in investing activities (327) (202)
Cash flows from financing activities:
Repayment on long-term debt (148) (190)
Proceeds from borrowing -- --
Purchase of treasury stock (49)
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Net cash provided/used by financing activities (148) (239)
Net increase (decrease) in cash (236) (721)
Cash, beginning 573 1,191
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Cash, ending 337 470
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Supplemental disclosure of cash flow information:
Cash paid for:
Interest 70 52
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Income taxes -- 215
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</TABLE>
Supplemental disclosure of noncash financing activity:
During the quarter ended April 30, 1995, the Company
reissued 7,799 shares of treasury stock to fund a portion
of the Company's tax deferred savings plan.
4
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AEROSONIC CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
JULY 31, 1995
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited condensed financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-Q and Rule 10-01 of Regulation
S-X. Accordingly, they do not include all of the information and footnotes
required by generally accepted accounting principles for complete financial
statements. In the opinion of management, all adjustments (consisting of
normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the three month period ended April 30,
1995 are not necessarily indicative of the results that may be expected for the
year ended January 31, 1996. For further information, refer to the
consolidated financial statements and footnotes thereto included in the
Company's annual report on Form 10-K for the year ended January 31, 1995.
5
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AEROSONIC CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULT OF
OPERATIONS
Net sales for the three months ended April 30, 1995 ("fiscal 1996") were
$5,033,000 as compared to $7,357,000 for the same period last year. All of the
sales reduction occurred within the Ordnance Division whose sales were $467,000
as compared to $2,824,000 in the prior year. Ordnance sales for the prior year
consisted of the Military Base Closure contract which was completed during the
third fiscal quarter.
The Avionics Specialties Division sales were $2,398,000 as compared to
$2,393,000 in the prior year. The Clearwater Instrumentation Division Sales
increased 1% to $2,168,000. Included in Clearwater Instrumentation sales was a
$292,000 settlement for "Termination for Convenience of the Government" of a
32A altimeter contract. In addition to the termination, Aerosonic was removed
from the "qualified products list" ("QPL") for the 32A and 31A altimeter. The
Company is presently going through the requalification process and expects to
be reinstated in the near future.
Cost of goods sold increased by the same percentage over prior year as the
percentage decrease in sales. Selling, general and administrative expenses
(SG&A) decreased by $86,000 as compared to the prior year quarter. However,
SG&A increased as a percentage to sales. While management continues to reduce
administrative expenses, the reduction in military ordnance sales did not
contribute any major efficiencies in this area.
Working capital decreased by $252,000 during the quarter. This was due to
capital expenditures funded with cash. These expenditures were primarily
within the Ordnance Division for automotive and truck part manufacturing
equipment.
Backlog as of April 30, 1995 was a total of $18,374,000, of which $15,217,000
is related to the Instrument Segment and $3,157,000 is related to the Ordnance
Segment.
6
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AEROSONIC CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULT OF OPERATIONS
A summary of the period-to-period changes in the principal items include
Statement is shown below:
<TABLE>
<CAPTION>
THREE MONTHS ENDED THREE MONTHS ENDED
4/30/95 - 4/30/94 4/30/95 - 1/31/95
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$ (000) % $ (000) %
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<S> <C> <C> <C> <C>
Net sales (2,324) (32) 783 18
Cost of sales (1,773) (32) (37) (1)
Operating expenses (86) (7) 65 6
Interest and other expenses 34 103 (779) (92)
Income taxes (188) (92) 585 (103)
Net income (311) (91) 949 (103)
</TABLE>
7
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PART II. OTHER INFORMATION
AEROSONIC CORPORATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibit 11: Computation of Earnings Per Share
(b) Exhibit 27: Financial Data Schedule (for SEC use
only)
(c) The Company filed a report on Form 8-K on April 8,
1995 regarding Item 5: Other Events. The
Company reported a change in Officers and Directors.
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.
AEROSONIC CORPORATION
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(Registrant)
Date: June 8, 1995 /s/ Herbert J. Frank
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Herbert J. Frank, President
and Chief Executive Officer
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Exhibit 11
Weighted Average Common Shares and Common Equivalents Outstanding
Computations of Earnings Per Share
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(In thousands, except per share data)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED
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APRIL 30 APRIL 30
1995 1994
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<S> <C> <C>
Primary earnings per share:
Net income $ 29 340
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Shares:
Weighted average common shares
outstanding 3,793 3,799
Add incremental shares arising from
exercise of stock options 107 121
Less assumed buyback of shares with
option proceeds (107) (121)
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Weighted average number of common
and common share equivalents 3,793 3,799
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Primary earnings per share $ 0.01 0.09
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</TABLE>
There are no other common stock equivalents so that primary and fully
diluted earnings per share are equal.
8
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF AEROSONIC CORPORATION FOR THE THREE MONTHS ENDED APRIL
30, 1995, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-31-1996
<PERIOD-START> FEB-01-1995
<PERIOD-END> APR-30-1995
<CASH> 337
<SECURITIES> 0
<RECEIVABLES> 3,968
<ALLOWANCES> 57
<INVENTORY> 6,160
<CURRENT-ASSETS> 10,934
<PP&E> 9,441
<DEPRECIATION> 3,171
<TOTAL-ASSETS> 18,239
<CURRENT-LIABILITIES> 3,704
<BONDS> 0
<COMMON> 1,595
0
0
<OTHER-SE> 9,509
<TOTAL-LIABILITY-AND-EQUITY> 18,239
<SALES> 5,033
<TOTAL-REVENUES> 5,033
<CGS> 3,705
<TOTAL-COSTS> 3,705
<OTHER-EXPENSES> 1,212
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 70
<INCOME-PRETAX> 46
<INCOME-TAX> 17
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 29
<EPS-PRIMARY> .01
<EPS-DILUTED> .01
</TABLE>
