<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(Mark One)
/X/ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 30, 1996
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
-------- ------
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 Offices)
(Zip Code)
(609) 589-0500
(Registrant's Telephone Number Including Area Code)
Not Applicable
(Former name, former address and formal 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
The number of shares of Common Stock outstanding as of March 30, 1996 was:
3,112,635 Shares
<PAGE> 2
K-TRON INTERNATIONAL, INC. AND SUBSIDIARIES
INDEX
<TABLE>
<CAPTION>
Page No.
<S> <C> <C>
PART I. FINANCIAL INFORMATION
---------------------
Item 1. Financial Statements
--------------------
Consolidated Balance Sheets 1
March 30, 1996 and December 30, 1995
Consolidated Statements of Operations 2
and Retained Earnings
Three Months Ended
March 30, 1996 and April 1, 1995
Consolidated Statements of Cash Flows 3
Three Months Ended March 30, 1996 and
April 1, 1995
Notes to Consolidated Financial 4-5
Statements
Item 2. Management's Discussion and Analysis 6-11
of Financial Condition and Results
of Operations
PART II. OTHER INFORMATION
-----------------
Item 3. Defaults upon Senior Securities 12
Item 6. Exhibits and Reports on Form 8-K 12
</TABLE>
<PAGE> 3
Item 1. Financial Statements
PART I. FINANCIAL STATEMENTS
K-TRON INTERNATIONAL, INC. & SUBSIDIARIES
-----------------------------------------
CONSOLIDATED BALANCE SHEETS
---------------------------
(Dollars in Thousands except Share Data)
<TABLE>
<CAPTION>
March 30, December 30,
1996 1995
(Unaudited) (Audited)
<S> <C> <C>
ASSETS
------
CURRENT ASSETS:
Cash and cash equivalents $ 2,450 $ 3,239
Accounts receivable (less allowance for doubtful accounts of
$1,031 and $1,077) 20,774 20,849
Inventories 16,993 18,534
Deferred income taxes 968 1,088
Prepaid expenses and other current assets 1,203 1,512
--------- --------
TOTAL CURRENT ASSETS 42,388 45,222
PROPERTY, PLANT AND EQUIPMENT, net 16,962 17,595
PATENTS AND LICENSES (Net of accumulated amortization
of $4,654 and $4,644) 486 480
EXCESS OF COST OVER NET ASSETS ACQUIRED
(Net of accumulated amortization of $3,076 and $3,009) 5,442 5,597
OTHER ASSETS 160 402
--------- --------
TOTAL ASSETS $ 65,438 $ 69,296
========= ========
LIABILITIES & SHAREHOLDERS' EQUITY
----------------------------------
CURRENT LIABILITIES:
Current portion of long-term debt $ 7,882 $ 2,133
Accounts payable 6,495 9,250
Accrued expenses & other current liabilities 3,469 2,558
Accrued payroll 1,685 1,459
Accrued commissions 2,534 2,523
Customer advances 2,660 2,612
Accrued warranty 1,070 893
Income taxes payable 563 680
-------- --------
TOTAL CURRENT LIABILITIES 26,358 22,108
LONG-TERM DEBT; NET OF CURRENT PORTION 26,593 35,004
DEFERRED INCOME TAXES 466 466
OTHER NONCURRENT LIABILITIES 2,124 2,297
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 4,175,585 shares and 4,175,585 shares 42 42
Paid-in capital 13,980 13,980
Retained earnings 6,528 5,776
Cumulative translation adjustments (89) 187
-------- --------
20,461 19,985
Treasury stock, 1,062,950 shares - at cost (10,564) (10,564)
-------- --------
TOTAL SHAREHOLDERS' EQUITY 9,897 9,421
-------- --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 65,438 $ 69,296
======== ========
</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
March 30, April 1,
1996 1995
---------- ----------
<S> <C> <C>
REVENUES $ 23,579 $ 30,503
COST OF REVENUES 13,646 19,292
---------- ----------
Gross profit 9,933 11,211
OPERATING EXPENSES
Selling, general and administrative 7,512 10,210
Research and development 613 976
---------- ----------
8,125 11,186
---------- ----------
OPERATING PROFIT 1,808 25
INTEREST EXPENSE 596 1,305
---------- ----------
INCOME (LOSS) BEFORE INCOME TAXES 1,212 (1,280)
INCOME TAX PROVISION 460 --
---------- ----------
NET INCOME (LOSS) 752 (1,280)
RETAINED EARNINGS
Beginning of period 5,776 15,070
---------- ----------
End of period $ 6,528 $13,790
========== ==========
EARNINGS (LOSS) PER SHARE $ .24 $ ( .41)
========== ==========
WEIGHTED AVERAGE NUMBER OF COMMON AND
COMMON EQUIVALENT SHARES OUTSTANDING 3,127,000 3,089,000
========== ==========
</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>
March 30, April 1,
1996 1995
<S> <C> <C>
OPERATING ACTIVITIES:
Net Income (loss) $ 752 $(1,280)
Adjustment to reconcile net income (loss) to net cash provided
by (used in) operating activities:
Depreciation and amortization 796 1,642
Amortization of deferred gain on sale/leaseback transaction (116) (96)
Deferred income taxes 110 (113)
Changes in assets and liabilities:
Accounts receivable, net (272) 350
Inventories 1,284 (3,130)
Prepaid expenses and other current assets 286 (679)
Other assets (143) 99
Accounts payable (2,637) 1,965
Accrued expenses and other current liabilities 1,214 163
Accrued warranty 202 156
Income taxes (115) 64
-------- -------
Net cash provided by (used in) operating activities 1,361 (859)
-------- -------
INVESTING ACTIVITIES:
Capital expenditures (125) (233)
Investment in patents and licenses (16) (1)
-------- -------
Net cash used in investing activities: (141) (234)
-------- -------
FINANCING ACTIVITIES:
Net (payments) borrowings under notes payable to banks (1,871) 1,490
Principal payments on long-term debt (89) (103)
-------- -------
Net cash (used in) provided by financing activities (1,960) 1,387
-------- -------
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
CASH EQUIVALENTS (49) (120)
-------- -------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (789) 174
-------- -------
CASH AND CASH EQUIVALENTS
Beginning of period 3,239 1,086
-------- -------
End of period $ 2,450 $ 1,260
======== =======
</TABLE>
See Notes to Consolidated Financial Statements
-3-
<PAGE> 6
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. ("K-Tron" or 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 on Form 10-K for the
year ended December 30, 1995 which was previously filed with the
Securities and Exchange Commission.
2. Supplemental Disclosures of Cash Flow Information
-------------------------------------------------
The Company considers all highly liquid short-term investments
purchased with a maturity of three months or less to be cash
equivalents. Cash paid in the first quarter of 1996 and 1995 for
interest was $.4 million and $1.1 million, respectively and for
income taxes was $.5 million and $.4 million, respectively.
3. Disposition of Businesses
-------------------------
In June 1995 the Company sold Colortronic GmbH and rights to
several related patents and patent applications, resulting in a
pretax loss of $10.5 million in 1995. In the fourth quarter of
1995, the Company sold certain operations in France and Brazil,
resulting in a pretax loss of $0.7 million in 1995.
See Management's Discussion and Analysis of Financial Conditions
and Results of Operations ("MD&A") for the pro forma impact of
the sale of these businesses on the results of operations for the
first quarter of 1995.
4. Maturity of Debt
----------------
As discussed in the MD&A, the Company is currently operating
under the U.S. and Swiss forbearance agreements. These
forbearance agreements are scheduled to expire January 31, 1997
and March 31, 1997, respectively. The U.S. bank debt of $7.6
-4-
<PAGE> 7
million as of March 30, 1996 has been reclassified to short-term
debt. Swiss bank debt ($26.7 million as of March 30, 1996) will
be reclassified to short-term debt at the end of the second quarter
of 1996. The Company has received written proposals from other
financial institutions to replace its U.S. bank debt. Due
diligence has begun with two prospective new lenders, but there
can be no assurance that this will result in new U.S. borrowing
arrangements. The Company is also exploring ways to reduce its
bank indebtedness in Switzerland.
-5-
<PAGE> 8
ITEM 2. K-TRON INTERNATIONAL, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
THREE MONTHS ENDED MARCH 30, 1996
Overview
- --------
As reported in the Company's Annual Report on Form 10-K for the fiscal
year ended December 30, 1995, 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, and the Company's Swiss manufacturing
subsidiary is in violation of certain equity guarantees contained in its loan
agreements with several Swiss lenders, resulting in a default under each of
those loan agreements. These defaults are continuing and have not been waived.
Forbearance agreements exist with the U.S. and Swiss lenders which are
described in more detail in the Form 10-K. At March 30, 1996, the principal
amounts outstanding under the U.S. and Swiss loan agreements were $7.6 million
and $26.7 million, respectively.
The Company is seeking alternative debt or equity financing and has
received written proposals from other financial institutions to replace its
U.S. bank debt. Due diligence has begun with two prospective new lenders, but
there can be no assurance that this will result in new U.S. borrowing
arrangements. The Company is also exploring ways to reduce its bank
indebtedness in Switzerland.
Since the 1995 dispositions of the Company's Colortronic, Brazilian and
Hasler France businesses and the discontinuance of the other Colortronic brand
business (collectively the "Discontinued Businesses"), the Company's results
have improved significantly, and it reported net income of $752,000 for the
first quarter of 1996 as well as $375,000 and $561,000 for the third and fourth
quarters of 1995, respectively. Cash flow from operations has also improved,
enabling the Company to reduce bank debt in the first quarter of 1996 by
$1,960,000 and by $5,368,000 in the second half of 1995.
The Company has no borrowing availability under its U.S. loan agreement
but has $4.2 million of availability under certain of its Swiss loan
agreements. Management believes that cash flow will be sufficient in 1996 to
sustain the business and further that the Company and its subsidiaries will be
able to comply with all of the covenants and payment provisions contained in
both the U.S. and Swiss forbearance agreements. Management further believes
that through the successful completion of new financings in 1996 and operating
performance, the Company will be able to either refinance or extend the
maturities of the two forbearance agreements before they expire in 1997, but
there can be no assurance that this will happen.
-6-
<PAGE> 9
K-Tron is an international company with approximately 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.
Results of Operations
- ---------------------
In the first quarter of 1996, the Company reported net income of $752,000
as compared to a net loss of $1,280,000 for the same period in 1995. On a pro
forma basis, if the actions regarding the Discontinued Businesses had occurred
at the beginning of the 1995 fiscal year, the Company would have had net income
of $153,000 in the first quarter of the 1995 fiscal year.
The following table sets forth the Company's results of operations for the
periods indicated, as well as the first quarter 1995 on a pro forma basis as
described above:
<TABLE>
<CAPTION>
Three Months Ended
------------------
($ in 000's)
April 1,1995
March 30, ------------
1996 Pro Forma As Reported
-------- --------- -----------
<S> <C> <C> <C> <C> <C> <C>
Total Revenues $23,579 100.0% $19,124 100.0% $30,503 100.0%
Cost of Revenues 13,646 57.9 10,780 56.4 19,292 63.2
------- ----- ------- ----- -------- -----
Gross Profit 9,933 42.1 8,344 43.6 11,211 36.8
Selling, General
and Administrative 7,512 31.9 6,938 36.3 10,210 33.5
Research and
Development 613 2.6 616 3.2 976 3.2
------- ----- ------- ----- -------- -----
Operating Profit 1,808 7.6 790 4.1 25 .1
Interest 596 2.5 637 3.3 1,305 4.3
------- ----- ------- ----- -------- -----
Income (loss) before
income taxes $ 1,212 5.1% $ 153 0.8% $(1,280) (4.2%)
======= ===== ======= ===== ======== =====
Backlog after excluding
the Discontinued
Businesses (at a
constant foreign
exchange rate) $24,226 $22,014
======= =======
</TABLE>
-7-
<PAGE> 10
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 for the first quarter of 1996 were affected by changes in various
foreign currency exchange rates, including in particular the average U.S.
dollar/Swiss franc, average U.S. dollar/Deutsche mark and average Deutsche
mark/Swiss franc exchange rates, as follows:
<TABLE>
<CAPTION>
Three Months Ended
------------------
March 30, April 1,
1996 1995
---- ----
<S> <C> <C> <C>
Swiss franc average rate $.839 $.806
% appreciation vs. prior year +4.1%
Deutsche mark average rate $.681 $.677
% appreciation vs. prior year +.6%
Deutsche mark average rate vs.
Swiss franc average rate .812 .840
% depreciation vs. prior year -3.4%
</TABLE>
Total revenues decreased by $6.9 million or 22.7% (23.5% when using a
constant foreign exchange rate) in the first quarter of 1996 when compared to
the same period in 1995 and increased by $4.4 million or 23.3%(25.0% when using
a constant foreign exchange rate) in the first quarter of 1996 when compared to
the pro forma 1995 revenues. Total revenues increased as compared to the pro
forma 1995 first quarter revenues due to a strong United States and European
backlog at the end of 1995, continued strong 1996 order in-flow and the effect
of a weaker U.S. dollar relative to the Swiss franc and Deutsche mark.
Gross margin as a percent of revenues improved to 42.1% in the first
quarter of 1996 as compared to 36.8% for the same period in 1995 (43.6% after
excluding the Discontinued Businesses). The improvement in gross margin in
1996 was due to volume and price increases and cost reductions as well as the
June 1995 sale and discontinuance of the Colortronic business which had low
margins, offset by the inability to pass on increased costs caused by the
appreciation of the Swiss franc to customers in certain European countries,
primarily Germany. The decrease in margin of 1.5% when compared to the margins
without the Discontinued Businesses was primarily due to the inability to pass
on increased costs caused by the appreciation of the Swiss franc to customers
in certain European countries, primarily Germany, and product mix.
-8-
<PAGE> 11
Selling, general and administrative (SG&A) expense decreased by $2.7
million or 26.4% in the first quarter of 1996 as compared to the same period in
1995. The decrease in SG&A in the first quarter was due to the elimination of
SG&A expenses associated with the Discontinued Businesses offset by higher
foreign exchange translation rates. After excluding the SG&A expenses relating
to the Discontinued Businesses from the first quarter of 1995, the 1996 first
quarter SG&A increased by $0.6 million, but decreased by 4.4% as a percent of
revenues. The increase in dollars was due to higher commissions and selling
expenses related to the increased sales volume as well as higher foreign
exchange translation rates. The decrease as a percentage of revenues was due
to an increase in revenues.
Research and development (R&D) expenditures decreased by $0.4 million
or 37.2% in the first quarter of 1996 as compared to the same period in 1995
due to the elimination of Colortronic expenses, offset in part by using for
other purposes certain resources previously allocated to Colortronic and higher
foreign exchange translation rates. R&D expense as a percent of revenues was
2.6% in the first quarter of 1996 and 3.2% in the same period in 1995 (3.2%
excluding the Discontinued Businesses).
Interest expense decreased by $0.7 million or 54% in the first quarter
of 1996 as compared to the same period in 1995 due to lower debt levels, offset
in part by increased interest rates in the United States and higher foreign
exchange translation rates. Interest expense as a percent of revenues was 2.5%
in the first quarter of 1996 and 4.2% in the same period in 1995 (3.3%
excluding Discontinued Businesses).
A provision for income taxes was recorded on the first quarter 1996
income. No tax provision was made in 1995 due to losses incurred in the first
quarter of 1995. The effective tax rate for the first quarter of 1996 was 38%.
The Company's backlog increased by 10% at the end of the first quarter of
1996 compared to the same period in 1995 (excluding the Discontinued Businesses
and at a constant foreign exchange rate) due to strong bookings in the United
States and Europe.
-9-
<PAGE> 12
Liquidity and Capital Resources
- -------------------------------
The Company's capitalization as of the end of the first quarter of 1996
and fiscal year end 1995 is set forth below:
<TABLE>
<CAPTION>
March 30, Dec. 30,
(Dollars in Thousands) 1996 1995
---- ----
<S> <C> <C>
Short-term debt including
current portion of
long-term debt $ 7,882 $ 2,133
Long-term debt 26,593 35,004
------- -------
Total debt 34,475 37,137
Shareholders' equity 9,897 9,421
------- -------
Total debt and share-
holders' equity $44,372 $46,558
======= =======
Percent debt to total
capitalization 78% 80%
Percent long-term
debt to equity 269% 372%
Percent total debt to
equity 348% 394%
</TABLE>
Total debt decreased by $2.7 million in the first quarter of 1996, of which
$0.7 million was due to the effect of foreign exchange translation. Total debt
without the effect of the foreign exchange translation decreased by $2.0
million. European and U.S. debt decreased by $1.6 million and $0.4 million,
respectively. The Company has no borrowing availability under its U.S. loan
agreement, but at March 30, 1996 it had $4.2 million of available credit
facilities in Europe.
The increase in short-term debt of $5.7 million in the first quarter of
1996 is primarily due to the reclassification of the U.S. bank debt to
short-term as a result of the maturity in January 1997 of the debt in
accordance with the forbearance agreement. The Swiss bank debt of $26.7
million will be similarly reclassified at the end of the second quarter of
1996.
At the end of March 1996 and December 1995, working capital was $16.0
million and $23.1 million, respectively, and the ratio of current assets to
current liabilities was 1.61 and 2.05, respectively. Working capital decreased
in 1996 primarily due to the reclassification of long-term debt to short-term
debt as discussed above.
-10-
<PAGE> 13
In the first quarter of 1996, the Company utilized internally-generated
funds to meet its working capital needs and reduce long-term debt. In 1995,
the Company met its working capital needs by utilizing short and long-term
borrowings as well as by increasing the aging of accounts payable.
Operating activities provided $1.4 million in positive cash flow in the
first quarter of 1996 as compared to using $0.9 million in the same period of
1995. The increase in operating cash flow was primarily the result of operating
profits generated in the first quarter of 1996, and reduction of inventory
levels, offset in part by a net reduction in accounts payable and accrued
expenses. The significant loss in 1995 was the primary reason for the use of
cash in 1995.
Cash used in financing activities for the first quarter of 1996 was for the
reduction of debt and was obtained from the cash provided from operating
activities.
Changes in foreign exchange rates, particularly with respect to the Swiss
franc and Deutsche mark, caused a translation adjustment decrease in
shareholders' equity of $.3 million in the first quarter of 1996.
-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 30, 1995, 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, and the Company's Swiss manufacturing subsidiary is in
violation of certain equity guarantees contained in its loan agreements with
several Swiss lenders, resulting in a default under each of those loan
agreements. These defaults are continuing and have not been waived.
On February 28, 1996, the Company and its U.S. subsidiaries entered into an
amendment to their existing 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 through the earlier of January 31, 1997 or the occurrence of
a new event of default thereunder. At March 30, 1996, the principal amount
outstanding under the U.S. loan agreement was $7.6 million.
In early 1996, an agreement was entered into among the Company's Swiss
subsidiary, several other K-Tron companies and the lenders to the Swiss
subsidiary under which the lenders have agreed to defer until March 31, 1997
the repayment of credit lines and the principal payments on fixed loans that
become due prior to that date. At March 30, 1996, the principal amount
outstanding under the Swiss loan agreements was $26.7 million.
More details about the U.S. and Swiss Forbearance Agreements are contained
in the Company's Annual Report on Form 10-K for the fiscal year ending December
30, 1995.
The Company is seeking alternative debt or equity financing and has
received written proposals from other financial institutions to replace its
U.S. bank debt. Due diligence has begun with two prospective new lenders, but
there can be no assurance that this will result in new U.S. borrowing
arrangements. The Company is also exploring ways to reduce its bank
indebtedness in Switzerland.
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
(a) Exhibits
11.1 Computation of Earnings (Loss) Per Share
27.1 Financial Data Schedule
(b) Reports on Form 8-K
There were no reports on Form 8-K for the three months ended March 30,
1996.
-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: May 2, 1996
- -----------------
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
<TABLE>
<CAPTION>
Exhibit
<S> <C>
11.1 Computation of Earnings
(Loss) Per Share
27.1 Financial Data Schedule
</TABLE>
<PAGE> 1
Exhibit 11.1
K-TRON INTERNATIONAL, INC. & SUBSIDIARIES
COMPUTATION OF EARNINGS (LOSS) PER SHARE
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
------------------
March 30, April 1,
1996 1995
---- ----
<S> <C> <C>
AVERAGE COMMON AND
COMMON-EQUIVALENT
SHARES:
Weighted Average Common Shares
Outstanding per Period 3,113,000 3,088,000
Stock Options 14,000 1,000
----------- -----------
ADJUSTED AVERAGE COMMON
AND COMMON-EQUIVALENT
SHARES COMPUTATION 3,127,000 3,089,000
=========== ===========
EARNINGS FOR COMMON AND
COMMON-EQUIVALENT SHARES
COMPUTATION:
Net income (loss)
applicable to
Common Stock $ 752,000 $(1,280,000)
=========== ===========
EARNINGS (loss) PER SHARE:
Earnings (loss) per Share $ .24 $ (.41)
=========== ===========
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-28-1996
<PERIOD-END> MAR-30-1996
<CASH> 2,450
<SECURITIES> 0
<RECEIVABLES> 21,805
<ALLOWANCES> 1,031
<INVENTORY> 16,993
<CURRENT-ASSETS> 42,388
<PP&E> 43,871
<DEPRECIATION> 26,909
<TOTAL-ASSETS> 65,438
<CURRENT-LIABILITIES> 26,358
<BONDS> 26,593
0
0
<COMMON> 42
<OTHER-SE> 9,855
<TOTAL-LIABILITY-AND-EQUITY> 65,438
<SALES> 23,579
<TOTAL-REVENUES> 23,579
<CGS> 13,646
<TOTAL-COSTS> 13,646
<OTHER-EXPENSES> 8,125
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 596
<INCOME-PRETAX> 1,212
<INCOME-TAX> 460
<INCOME-CONTINUING> 752
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 752
<EPS-PRIMARY> .24
<EPS-DILUTED> .24
</TABLE>
