<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Quarter Ended July 1, 1995
----------------------------------------------------------
Commission File Number 0-9576
----------------------------------------------------------
K-TRON INTERNATIONAL, INC.
--------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
New Jersey 22-1759452
------------------------------- -------------------
(State or other jurisdiction of (IRS Employer ID #)
incorporation of organization)
Routes 55 & 553
P.O. Box 888
Pitman, New Jersey 08071-0888
------------------------------- -------------------
(Address of Principal Executive (Zip Code)
Offices)
Registrant's Telephone Number (Including Area Code) (609) 589-0500
------------------
Securities Registered Pursuant to Section 12(g) of the Act:
Common Stock, Par Value $0.1 Per Share
--------------------------------------------------------------------------------
(Title of Class)
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
----- -----
The number of shares of Common Stock outstanding as of July 1, 1995
------------
3,103,573 Shares
---------
<PAGE> 2
K-TRON INTERNATIONAL, INC. AND SUBSIDIARIES
INDEX
<TABLE>
<CAPTION>
Page No.
--------
<S> <C>
PART I. FINANCIAL INFORMATION
---------------------
Item 1. Financial Statements
--------------------
Consolidated Balance Sheets 1
July 1, 1995 and December 31, 1994
Consolidated Statements of Operations 2
and Retained Earnings
Three Months and Six Months Ended
July 1, 1995 and July 2, 1994
Consolidated Statements of Cash Flows 3-4
Six months Ended July 1, 1995 and
July 2, 1994
Notes to Consolidated Financial Statements 5
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 6-11
PART II. OTHER INFORMATION
-----------------
Item 3. Defaults upon Senior Securities 12
Item 6. Exhibits and Reports on Form 8-K 12
</TABLE>
<PAGE> 3
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
K-TRON INTERNATIONAL, INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands except share data)
<TABLE>
<CAPTION>
July 1, December 31,
1995 1994
ASSETS (Unaudited) (Audited)
------ ----------- ---------
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 1,734 $ 1,086
Accounts receivable (less allowance for doubtful accts.
of $989 & $1,523) 21,651 29,214
Inventories 21,827 25,458
Deferred income taxes 753 328
Income Tax Receivable 400 442
Prepaid expenses & other current assets 1,911 1,145
------- --------
TOTAL CURRENT ASSETS 48,276 57,673
PROPERTY, PLANT AND EQUIPMENT (Net) 19,957 31,673
PATENTS AND LICENSES (Net of accumulated amortization of
$4,626 & $7,657) 600 908
EXCESS OF COST OVER NET ASSETS ACQUIRED
(Net of accumulated amortization of $2,742 & $4,888) 6,072 18,661
OTHER ASSETS 550 650
DEFERRED INCOME TAXES, Net 810 385
------- --------
TOTAL ASSETS $76,265 $109,950
======= ========
LIABILITIES & SHAREHOLDERS' EQUITY
----------------------------------
CURRENT LIABILITIES:
Notes payable to banks 42,745 $ 31,175
Current portion of long-term debt 145 1,337
Accounts payable 9,730 12,251
Accrued expenses & other current liabilities 3,762 2,469
Accrued payroll 2,216 2,211
Accrued commissions 2,410 3,039
Customer advances 1,558 2,720
Accrued warranty 1,091 930
Income taxes payable 1,139 1,241
Deferred income taxes 336 849
------ --------
TOTAL CURRENT LIABILITIES 65,132 58,222
LONG-TERM DEBT 225 27,413
DEFERRED GAIN ON SALE/LEASEBACK 2,557 2,456
DEFERRED INCOME TAXES 199 399
NONCURRENT PENSION LIABILITY -- 2,939
COMMITMENTS AND CONTINGENCIES
SERIES A JUNIOR PARTICIPATING PREFERRED SHARES,
$.01 par value - authorized 50,000 shares; none issued -- --
SHAREHOLDERS' EQUITY:
Preferred stock, $.01 par value - authorized, -- --
950,000 shares; none issued
Common stock, $.01 par value - authorized,
15,000,000 shares; issued 4,166,523 shares
and 4,150,887 42 41
Paid-in capital 13,938 13,865
Retained earnings 4,840 15,070
Cumulative translation adjustments (104) 109
------- --------
18,716 29,085
Treasury stock, 1,062,950 shares - at cost (10,564) (10,564)
------- --------
TOTAL SHAREHOLDERS' EQUITY 8,152 18,521
------- --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $76,265 $109,950
======= ========
</TABLE>
See Notes to Consolidated Financial Statements
-1-
<PAGE> 4
K-TRON INTERNATIONAL, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS & RETAINED EARNINGS
(Dollars in Thousands except share data)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------ ----------------
July 1, July 2, July 1, July 2,
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
REVENUE: $ 32,982 $24,812 $63,485 $46,726
--------- -------- -------- --------
COSTS AND EXPENSES:
Cost of sales 20,874 14,805 40,166 27,811
Selling, general
& administrative 9,725 7,855 19,935 15,486
Research & development 1,004 1,061 1,980 2,105
Interest 1,350 1,040 2,655 1,950
--------- -------- -------- --------
Total costs & expenses 32,953 24,761 64,736 47,352
--------- -------- -------- --------
(LOSS) ON DISPOSITION OF
BUSINESS (10,529) -- (10,529) --
--------- -------- -------- --------
(LOSS) INCOME BEFORE INCOME
TAXES (10,500) 51 (11,780) (626)
INCOME TAXES (Benefit) (1,550) -- (1,550) --
--------- -------- -------- --------
NET (LOSS) INCOME (8,950) 51 (10,230) (626)
RETAINED EARNINGS
Beginning of Period 13,790 21,219 15,070 21,896
--------- -------- -------- --------
End of Period $ 4,840 $21,270 $ 4,840 $21,270
========= ======== ======== ========
(LOSS) EARNINGS PER SHARE $ (2.90) $ .02 $ (3.31) $ (.20)
========= ======== ======== ========
WEIGHTED AVERAGE NUMBER OF
COMMON AND COMMON EQUIVALENT
SHARES OUTSTANDING 3,088,000 3,064,000 3,088,000 3,064,000
========= ========= ========= =========
</TABLE>
See Notes to Consolidated Financial Statements
-2-
<PAGE> 5
K-TRON INTERNATIONAL, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
--------------------
July 1, July 2,
1995 1994
---- ----
<S> <C> <C>
OPERATING ACTIVITIES:
Net (loss) $(10,230) $ (626)
Adjustments to reconcile net loss to
net cash used in operating activities:
Loss on disposition of business 10,529 --
Depreciation and amortization 3,011 3,104
Amortization of deferred gain on
sale/leaseback transaction (231) (193)
Deferred income taxes (1,474) (204)
Changes in assets and liabilities
which provided (used) cash:
Accounts receivable, net 1,217 2,043
Inventories (1,158) (2,607)
Prepaid expenses and other current
assets (886) (1,126)
Other assets 294 (260)
Accounts payable (24) 20
Accrued expenses and other current liabilities (1,311) (1,182)
Accrued warranty 336 (94)
Income taxes payable (165) (86)
------- --------
Net cash used in operating activities (92) (1,211)
------- --------
INVESTING ACTIVITIES:
Proceeds from disposition of business 9,000 --
Capital expenditures (332) (977)
Investment in patents and licenses 5 (90)
------- --------
Net cash provided by (used in) investing activities 8,673 (1,067)
------- --------
FINANCING ACTIVITIES:
Net borrowings (payments) under notes payable
to banks (7,558) 2,403
Net borrowings under long-term lines of credit -- 700
Principal payments on long-term debt (311) (1,429)
Proceeds from issuance of common stock 73 129
------- --------
Net cash provided by (used in) financing activities (7,796) 1,803
------- --------
EFFECT OF EXCHANGE RATE CHANGES ON CASH
AND CASH EQUIVALENTS (137) (78)
------- --------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 648 (553)
------- --------
CASH AND CASH EQUIVALENTS
Beginning of Period 1,086 1,643
------- --------
End of Period $1,734 $ 1,090
======= ========
</TABLE>
See Notes to Consolidated Financial Statements
-3-
<PAGE> 6
Consolidated Statements of Cash Flows (continued):
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
------------------------
July 1, July 2,
1995 1994
---- ----
<S> <C> <C>
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest $1,899 $1,694
Income taxes 730 2
</TABLE>
Disclosure of Accounting Policy:
For purposes of the statement of cash flows, the Company considers all
highly liquid short-term investments purchased with a maturity of three
months or less to be cash equivalents.
See Notes to Consolidated Financial Statements
-4-
<PAGE> 7
K-TRON INTERNATIONAL, INC. & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Basis of Presentation
The accompanying unaudited financial statements have been prepared in
accordance with the instructions for Form 10-Q and do not include all
of the information and footnotes required by generally accepted
accounting principles for complete financial statements. The
consolidated financial statements include the accounts of K-Tron
International, Inc. (the "Company") and its subsidiaries. All
intercompany transactions have been eliminated in consolidation. In
the opinion of management, all adjustments (consisting of a normal
recurring nature) considered necessary for a fair presentation of
results for interim periods have been made. The results for the
interim periods are not necessarily indicative of the results for a
full year.
The unaudited financial statements herein should be read in
conjunction with the Company's Annual Report or Form 10-K for the year
ended December 31, 1994 which was previously filed with the Securities
and Exchange Commission.
2. Disposition of Business
On June 23, 1995, subsidiaries of the Company sold Colortronic GmbH and
rights to several related patents and patent applications to an investment
group for $9 million.
The Swiss banks have not yet allocated $5,150,000 of the proceeds to
specific debt outstanding, but will do so in the near future.
Accordingly, this amount has been reflected as a reduction to notes
payable to banks in the accompanying balance sheet as of July 1, 1995.
The Company recorded a pre-tax loss of $10,529,000 on the disposition.
The Company has generated a significant tax loss carry forward due to the
sale of Colortronic GmbH. In the second quarter the Company recorded a
$1,550,000 tax benefit relating to this loss based upon the existence of
deferred tax liabilities which no longer will be required and estimates of
future income. The Company has set up a valuation allowance of
approximately half of the tax benefit associated with the sale.
-5-
<PAGE> 8
ITEM 2. K-TRON INTERNATIONAL, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Six Months ended July 1, 1995
Financial Condition
As reported in the Company's Annual Report on Form 10-K for the fiscal
year ended December 31, 1994, the Company and its U.S. manufacturing
subsidiary are in default under several financial covenants contained in
their loan agreement with three U.S. banks. These defaults are continuing
and have not been waived. However, on April 28, 1995, the Company and its
U.S. subsidiaries entered into a forbearance agreement with the U.S. banks
in which such banks agreed to forbear in the exercise of their rights and
remedies under the loan documents. On June 22, 1995 this agreement was
amended and extended through the earlier of February 28, 1996 or the
occurrence of a new event of default thereunder. See subsequent discussion of
the effect of a default under Swiss loan agreements. The forbearance agreement
also modified the existing loan documents in certain aspects, including the
granting of additional collateral. At July 1, 1995, the principal amount
outstanding under the Company's U.S. loan agreement was $10,028,000.
On June 23, 1995, subsidiaries of K-Tron sold Colortronic GmbH and
rights to several related patents and patent applications to an investment
group for $9 million. The group included two K-Tron executives,
including its president and CEO. Both subsequently resigned their K-Tron
positions, and Leo C. Beebe, K-Tron's chairman, assumed the duties of chief
executive officer.
The pro forma results of K-Tron without Colortronic are shown below:
K-Tron International, Inc.
Pre-Tax Pro Forma Consolidated Operations
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
As Reported Colortronic Pro Forma
from Operations Related Consolidated
--------------- ------- ------------
<S> <C> <C> <C>
1994 $(7,052) $(5,576) $(1,476)
====== ====== ======
1995 1st Qtr. $(1,280) $(1,314) $ 34
1995 2nd Qtr. 29* (410) 439
------ ------ ------
1995 six months $(1,251)* $(1,724) $ 473
====== ====== ======
</TABLE>
*Excluding the pre-tax loss on sale of Colortronic of $10,529 million.
The Colortronic divestiture generated a pre-tax loss of $10,529
million. This loss was primarily a non-cash write-off of goodwill.
-6-
<PAGE> 9
The tax loss carryforward generated by the sale can be used to offset future
cash tax payments. As a result of the sale of Colortronic GmbH, K-Tron's debt
decreased by $24.2 million.
The loss on the sale of Colortronic caused K-Tron's Swiss subsidiary's
equity to fall below the equity guarantees in its loan agreements with
Swiss banks. As a result, the subsidiary is in default and these loans
have been reclassified as short-term.
The subsidiary is currently negotiating a revised financing agreement
with the Swiss banks, but there can be no assurance that a new agreement
will be entered into or that the Swiss banks will not demand payment of
their loans. Furthermore, such equity violation is a new event of default
under the Company's U.S. loan agreement described above. At July 1, 1995,
the principal amount outstanding under the Swiss loan agreements was $32.2
million.
The Company is seeking alternative debt or equity financing. At this
time, the Company has not obtained commitments, and its ability to continue
as a going concern depends on the future availability of its existing
credit facilities or replacement lines of credit, or the raising of cash
through the sale of assets or additional equity. If the Company is
unsuccessful in these efforts, it may be unable to meet its obligations in
a timely manner, making it necessary to undertake such other actions as may
be appropriate to preserve asset values.
Results of Operations
K-Tron is an international company with two-thirds of its business
arising from sources outside the United States, primarily Europe. As such,
the financial position and performance of the Company is sensitive to both
translation and transaction fluctuations in foreign currency exchange
rates.
In the second quarter of 1995, the Company reported a net loss of
$8.950 million after recording an after-tax loss of $8.979 million on the
sale of Colortronic as noted above. Profit margins were negatively
affected by heavily discounted orders booked in 1994 or quoted prior to
recent price increases and the inability to pass on increased material
costs caused by the appreciation of the Swiss franc to customers in certain
European countries. If the Colortronic business had not been a part of
K-Tron's operations for the quarter, then the Company would have reported
second quarter 1995 pre-tax income from operations of $439,000.
-7-
<PAGE> 10
The following table sets forth the Company's results of operations
expressed as a percentage of total revenues for the periods indicated:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------ ----------------
July 1, July 2, July 1, July 2,
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues 100.0% 100.0% 100.0% 100.0%
Cost of Sales 63.4 59.7 63.3 59.5
---- ---- ---- ----
Gross Margin 36.6 40.3 36.7 40.5
Selling, General &
Administrative 29.4 31.6 31.4 33.1
Research & Development 3.0 4.3 3.1 4.5
Interest 4.1 4.2 4.2 4.2
---- ---- ---- ----
(Loss) Earnings before
income taxes and dis-
position of business .1% .2% (2.0)% (1.3)%
==== ==== ====== ======
Quarter-end backlog
(in thousands) $25,356 $20,404 (1)
======= ========
</TABLE>
(1) At July 1, 1995 foreign exchange translation rates and prior year backlog
excludes the backlog of Colortronic GmbH
Translation of the Company's foreign revenues and results of
operations into U.S. dollars is affected by changes in foreign exchange
rates, particularly with respect to the Swiss franc and the Deutsche mark.
Revenues and earnings in the second quarter and first six months of 1995
were affected by changes in the average U.S. dollar/Swiss franc and average
U.S. dollar/Deutsche mark exchange rates, as follows:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------ ----------------
July 1, July 2, July 1, July 2,
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Swiss franc rate $.87 $.70 $.84 $.70
% appreciation vs. prior year +24% +20%
Deutsche mark rate $.72 $.59 $.70 $.59
% appreciation vs. prior year +22% +19%
</TABLE>
Total revenues for the second quarter of 1995 increased by $8.2
million or 33% ($4.2 million or 17% when using constant foreign exchange
rates) and $16.6 million or 36% for the first six months of 1995 ($9.7
million or 20% when using constant foreign exchange rates) versus the same
periods in 1994. Total revenues increased due to the strong European and
-8-
<PAGE> 11
United States year end 1994 backlog, strong 1995 new order inflow and the
effect of a weaker U.S. dollar relative to the Swiss franc and Deutsche
mark.
Gross margin as a percent of revenues declined to 36.6% in the second
quarter of 1995 and 36.7% for the first six months of 1995 as compared to
40.3% and 40.5% respectively for the same periods in 1994. The decline in
the 1995 margin was primarily due to heavily discounted orders booked in
1994, as well as the inability to pass on increased material costs caused
by the appreciation of the Swiss franc to customers in certain European
countries.
Selling, general and administrative (SG&A) expense increased by $1.9
million, or 23.8% in the second quarter of 1995 and $4.4 million or 28.7%
for the first six months of 1995 as compared to the same periods in 1994.
The increase was primarily due to higher foreign exchange translation rates
as well as to higher commissions and selling expenses related to the
increased sales volume. In addition, the Company incurred costs related to
the forbearance agreement and costs related to the Company's efforts to
arrange new financing or sell assets. As a percent of revenues, SG&A was
29.4% in the second quarter of 1995 and 31.4% for the first six months of
1995 as compared to 31.6% and 33.1% respectively for the same periods in
1994. The decrease in SG&A as a percent of revenues in 1995 was primarily
due to the increase in revenues.
Research and development (R&D) expenditures in the second quarter and
first six months of 1995 decreased $.1 million as compared to the same
periods in 1994 due to synergies realized from the integration of the
Company's brands and the completion of several major programs, offset in
part by the higher foreign exchange translation rate. R&D expense as a
percent of revenues was 3.0% in second quarter 1995 and 3.1% for the first
six months of 1995 as compared to 4.3% and 4.5% respectively in 1994. The
decrease in R&D as a percent of revenues in 1995 was primarily due to the
increase in revenues.
Interest expense increased over prior periods as a result of increased debt
levels in Europe and higher effective interest rates in the United States.
The Company has generated a significant tax loss carry forward due to the
sale of Colortronic GmbH. In the second quarter the Company recorded a
$1,550,000 tax benefit relating to this loss based upon the existence of
deferred tax liabilities which no longer will be required and estimates of
future income. The Company has set up a valuation allowance of approximately
half of the tax benefit associated with the sale.
-9-
<PAGE> 12
The backlog of orders excluding Colortronic GmbH increased at the end of
the second quarter of 1995 by 24% as compared to the same period in 1994 (using
July 1, 1995 foreign exchange translation rates for both calculations),
primarily due to the European recovery from recession and continued good
bookings in the United States.
Increased selling prices and reduced production and distribution costs
should improve future margins, and the Company's objective continues to be
to return to profitability from operations later in 1995.
Liquidity and Capital Resources
The Company's capitalization as of the end of the first and second
quarters of 1995 and fiscal year 1994 is set forth below:
<TABLE>
<CAPTION>
July 1, Apr. 1, Dec. 31,
(Dollars in Thousands) 1995 1995 1994
<S> <C> <C> <C>
Short-term debt including current
portion of long-term debt $42,890 $36,780 $32,512
Long-term debt 225 31,428 27,413
------- ------- -------
Total debt 43,115 68,208 59,925
Shareholders' equity 8,152 18,310 18,521
------- ------- -------
Total debt and shareholders'
equity $51,267 $86,518 $78,446
======= ======= =======
Percent debt to total
capitalization 84% 79% 76%
Percent debt to equity 529% 373% 324%
</TABLE>
Total debt decreased since year end 1994 by $16.8 million despite a
$6.0 million increase due to the effect of foreign exchange translation.
Total debt without the effect of the foreign exchange translation decreased
by $22.8 million. The debt reduction associated with the sale of Colortronic
was $24.2 million. The Company had available $.5 million in additional
borrowing facilities as of July 1, 1995.
At the end of the second quarter and first quarter of 1995, working
capital was ($16.9 million) and ($.3 million), respectively, and the ratio
of current assets to current liabilities was .74 and .99,
-10-
<PAGE> 13
respectively. As explained earlier, this change in working capital was
heavily affected by reclassifying $24.2 million from long term to short
term debt.
Cash used in the first six months operating activities was $.1
million. In the second quarter of 1995, $.8 million of cash was provided
from operations primarily from improved asset management.
Cash provided from investing activities for the first six months of
1995 was due to the funds received from the sale of Colortronic GmbH.
Cash used in finance activities for the first six months of 1995 was
primarily the result of using the proceeds from the sale of Colortronic
GmbH to reduce bank debt.
Changes in foreign exchange rates, particularly with respect to the
Swiss franc and Deutsche mark, caused a translation adjustment decrease (after
the elimination of the cumulative translation adjustment associated with the
Colortronic sale) in shareholders' equity of $213,000 in the first six months
of 1995.
-11-
<PAGE> 14
PART II. OTHER INFORMATION
Item 3. Defaults Upon Senior Securities
As reported in the Company's Annual Report on Form 10-K for the fiscal
year ended December 31, 1994, the Company and its U.S. manufacturing subsidiary
are in default under several financial covenants contained in their loan
agreement with three U.S. banks. These defaults are continuing and have not
been waived. However, on April 28, 1995, the Company and its U.S. subsidiaries
entered into a forbearance agreement with the U.S. banks in which such banks
agreed to forbear in the exercise of their rights and remedies under the loan
documents. On June 22, 1995 this agreement was amended and extended through
the earlier of February 28, 1996 or the occurrence of a new event of default
thereunder. The forbearance agreement also modified the existing loan
documents in certain aspects, including the granting of additional collateral.
At July 1, 1995, the principal amount outstanding under the Company's U.S.
loan agreement was $10,028,000.
The loss on the sale of Colortronic caused K-Tron's Swiss subsidiary's
equity to fall below the equity guarantees in its loan agreements with
Swiss banks. As a result, the subsidiary is in default and these loans
have been reclassified as short-term.
The subsidiary is currently negotiating a revised financing agreement
with the Swiss banks, but there can be no assurance that a new agreement
will be entered into or that the Swiss banks will not demand payment of
their loans. Furthermore, such equity violation is a new event of default
under the Company's U.S. loan agreement described above. At July 1, 1995,
the principal amount outstanding under the Swiss loan agreements was $32.2
million.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
11.1 Computation of (loss) Earnings Per Share
27.1 Financial Data Schedule
(b) Reports on Form 8-K
On July 10, 1995 the Company filed a current report on Form 8-K.
-12-
<PAGE> 15
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on his behalf by the
undersigned thereunto duly authorized.
K-TRON INTERNATIONAL, INC.
Date: August 15, 1995
---------------
By: /s/ Robert L. Weinberg
-----------------------
Robert L. Weinberg
Senior Vice President &
Chief Financial Officer
(Duly authorized officer
and principal financial
officer of the registrant)
By: /s/ Alan R. Sukoneck
--------------------
Alan R. Sukoneck
Vice President & Controller
(Duly authorized officer and
principal accounting officer
of the registrant)
-13-
<PAGE> 16
EXHIBIT INDEX
Exhibit
-------
11.1 Computation of (loss) Per Share
27.1 Financial Data Schedule
<PAGE> 1
Exhibit 11.1
K-TRON INTERNATIONAL, INC. & SUBSIDIARIES
COMPUTATION OF (LOSS) EARNINGS PER SHARE
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------ ----------------
July 1, July 2, July 1, July 2,
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
AVERAGE COMMON AND
COMMON-EQUIVALENT
SHARES:
Weighted Average
Common Shares
Outstanding
per Period 3,088,000 3,057,000 3,088,000 3,057,000
Stock Options and
Warrants Computed -- 7,000 -- 7,000
--------- --------- --------- ---------
ADJUSTED AVERAGE COMMON
AND COMMON-EQUIVALENT
SHARES COMPUTATION 3,088,000 3,064,000 3,088,000 3,064,000
========= ========= ========= =========
EARNINGS FOR COMMON AND
COMMON-EQUIVALENT
SHARES COMPUTATION:
Net (loss) income
applicable to
Common Stock $(8,950,000) $ 51,000 $(10,230,000) $(626,000)
============ ========= ============= ==========
EARNINGS PER SHARE:
(Loss) Earnings per
Share $ (2.90) $ .02 $ (3.31) $ (.02)
============ ========= ============= ==========
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-30-1995
<PERIOD-END> JUL-01-1995
<CASH> 1,734
<SECURITIES> 0
<RECEIVABLES> 22,640
<ALLOWANCES> 989
<INVENTORY> 21,827
<CURRENT-ASSETS> 48,276
<PP&E> 46,568
<DEPRECIATION> 26,611
<TOTAL-ASSETS> 76,265
<CURRENT-LIABILITIES> 65,132
<BONDS> 225
<COMMON> 42
0
0
<OTHER-SE> 8,110
<TOTAL-LIABILITY-AND-EQUITY> 76,265
<SALES> 63,485
<TOTAL-REVENUES> 63,485
<CGS> 40,166
<TOTAL-COSTS> 40,166
<OTHER-EXPENSES> 32,444
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,655
<INCOME-PRETAX> (11,780)
<INCOME-TAX> (1,550)
<INCOME-CONTINUING> (10,230)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (10,230)
<EPS-PRIMARY> (3.31)
<EPS-DILUTED> (3.31)
</TABLE>
