SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q-A
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended: June 28, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OF 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
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Commission File Number 1-4817
BOWMAR INSTRUMENT CORPORATION
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(Exact name of registrant as specified in its charter)
Indiana 35-0905052
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
5080 North 40th Street, Suite 475
Phoenix, Arizona 85018
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 602/957-0271
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 August 4, 1997, 6,674,492 shares of the Registrant's Common Stock, and
119,906 shares of the Registrant's Preferred Stock were outstanding.
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PART I FINANCIAL INFORMATION
Item 1. Financial Statements............................. 2-6
See attached
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BOWMAR INSTRUMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In thousands of dollars, except share data)
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June 28, 1997 September 28, 1996
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ASSETS
Current Assets
Cash $ 489 $ 108
Accounts receivable, net 4,280 3,992
Inventories 7,081 6,059
Prepaid expenses 398 402
Deferred income taxes 1,630 1,652
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Total Current Assets 13,878 12,213
Property, Plant and Equipment, net 1,365 1,122
Deferred Income Taxes 905 1,524
Other Assets, net 1,656 1,679
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Total Assets $17,804 $16,538
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Current portion of long-term debt $ 607 $ 556
Accounts payable 1,600 933
Accrued salaries and benefits 1,733 1,503
Accrued expenses 211 719
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Total Current Liabilities 4,151 3,711
Long-Term Debt 3,327 3,675
Other Long-Term Liabilities 339 339
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Total Liabilities 7,817 7,725
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Shareholders' Equity 9,987 8,813
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Total Liabilities and Shareholders' Equity $17,804 $16,538
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See Notes To Consolidated Financial Statements
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BOWMAR INSTRUMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(In thousands of dollars, except share data)
<TABLE>
<CAPTION>
====================================================================================
Third Quarter First Nine Months
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1997 1996 1997 1996
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<S> <C> <C> <C> <C>
Sales $ 6,989 $ 5,484 $ 20,175 $ 18,415
Cost of sales 4,319 3,222 12,311 11,558
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Gross margin 2,670 2,262 7,864 6,857
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Expenses:
Selling, general and
administrative 1,836 1,663 5,452 5,048
Product development 175 127 453 445
Interest expense 102 110 305 371
Other income, net (4) (181) (283) (411)
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Total expenses 2,109 1,719 5,927 5,453
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Income before income taxes 561 543 1,937 1,404
Provision for income taxes 209 215 760 563
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NET INCOME $ 352 $ 328 $ 1,177 $ 841
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NET INCOME PER COMMON SHARE:
Primary $ 0.04 $ 0.04 $ 0.14 $ 0.09
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Weighted average number of
common shares and equivalents:
Primary 6,712,681 6,537,354 6,638,921 6,575,239
Fully diluted 8,426,446 8,136,821 8,389,068 8,174,706
====================================================================================
</TABLE>
Note:For the third quarter and first nine months of 1997 and 1996, fully
diluted net income per share is considered to be the same as primary net
income per share since the effect of the potentially dilutive preferred
stock is currently antidilutive.
See Notes To Consolidated Financial Statements
3
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BOWMAR INSTRUMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In thousands of dollars, except share data)
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First Nine Months
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June 28, June 29,
1997 1996
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OPERATING ACTIVITIES:
Net income $ 1,177 $ 841
Adjustments to reconcile net income
to net cash provided by (used in) operations:
Depreciation and amortization 394 396
Deferred income taxes 641 459
Net changes in balance sheet accounts:
Accounts receivable (288) (62)
Inventories (1,022) (1,946)
Prepaid expenses 4 24
Accounts payable 667 34
Accrued salaries & expenses (278) (1,050)
Other 7 28
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Net cash provided by (used in) operating activities 1,302 (1,276)
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INVESTING ACTIVITIES:
Purchases of property, plant and equipment (616) (170)
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FINANCING ACTIVITIES:
Borrowings under notes payable 117 5,444
Retirement of debt (414) (4,461)
Payment of dividends on preferred stock (270) (270)
Issuance of common stock 268 (6)
Other (6) 0
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Net cash provided by (used in) financing activities (305) 707
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Net change in cash 381 (739)
Cash at beginning of period 108 739
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Cash at end of period $ 489 $ 0
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SUPPLEMENTAL CASH FLOW INFORMATION:
Net cash paid during the period for:
Interest $ 302 $ 403
Income taxes $ 180 $ 142
SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Equipment acquired under capital lease $ 190 $ 0
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See Notes To Consolidated Financial Statement
4
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BOWMAR INSTRUMENT CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. CONSOLIDATED FINANCIAL STATEMENTS
The consolidated balance sheets as of June 28, 1997 and September 28, 1996, the
consolidated statements of income for the third quarter and nine months ended
June 28, 1997 and June 29, 1996, and the consolidated statements of cash flows
for the first nine months ended June 28, 1997 and June 29, 1996, have been
prepared by the Registrant without audit. In the opinion of management all
adjustments which are of a normal recurring nature necessary to present fairly
such financial statements have been made.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been omitted. It is suggested that these consolidated financial statements
be read in conjunction with the consolidated financial statements and notes
thereto included in the Registrant's Annual Report on Form 10-K for the fiscal
year ended September 28, 1996. The results of operations for the above noted
periods ended are not necessarily indicative of the operating results for the
full year.
2. NEWLY ISSUED ACCOUNTING STANDARDS
In February 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 128 Earnings Per Share (FAS 128) which
specifies the computation, presentation, and disclosure requirements for
earnings per share. FAS 128 replaces the presentation of primary and fully
diluted EPS pursuant to Accounting Principles Board Opinion No. 15 Earnings Per
Share (APB 15) with the presentation of basic and diluted EPS. Basic EPS
excludes dilution and is computed by dividing net income available to common
stockholders by the weighted average number of shares outstanding for the
period. Diluted EPS reflects the potential dilution that could occur if
securities or other contracts to issue common stock were exercised or converted
into common stock. The Company is required to adopt FAS 128 with its December
28, 1997 financial statements and restate all prior period EPS information. The
Company will continue to account for EPS under APB 15 until that time. The
adoption of FAS 128 is not expected to have a significant impact on the
Company's reported earnings per share.
In June 1997, the FASB issued Statement of Financial Accounting Standards No.
130, Reporting Comprehensive Income (SFAS 130), which establishes standards for
reporting and display of comprehensive income and its components. This statement
requires a separate statement to report the components of comprehensive income
for each period reported. The provisions of this statements are effective for
fiscal years beginning after December 15, 1997. Management believes that they
currently do not have items that would require presentation in a separate
statement of comprehensive income.
In June 1997, the FASB also issued Statement of Financial Accounting Standards
No. 131, Disclosures about Segments of an Enterprise and Related Information
(SFAS 131), which establishes standards for the way the public business
enterprises report information about operating segments in annual financial
statements and require that those enterprises report selected information about
5
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operating segments in interim financial reports issued to shareholders. This
statement is effective for financial statements for periods beginning after
December 15, 1997. Management believes this statement may require expanded
disclosure in the Company's financial statements.
3. INVENTORIES
Inventories consist of the following (in thousands):
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June 28, 1997 September 28, 1996
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Raw Materials $2,742 $3,330
Work-in-process 3,838 2,531
Finished Goods 501 198
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$7,081 $6,059
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this amendment to be signed on its behalf by the
undersigned thereto duly authorized.
BOWMAR INSTRUMENT CORPORATION
/s/ Joseph G. Warren, Jr.
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Joseph G. Warren, Jr.
Vice President Finance
Dated: August 15, 1997
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