<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934.
For the quarterly period ended April 3, 1999
--------------------------------
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
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K-TRON INTERNATIONAL, INC.
- --------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in Its Charter)
New Jersey 22-1759452
- --------------------------------------------------------------------------------
(State or Other Jurisdiction of Incorporation (I.R.S. Employer
or Organization) Identification #)
Routes 55 & 553, P.O. Box 888, Pitman, New Jersey 08071-0888
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code (609) 589-0500
------------------------------
Not Applicable
- --------------------------------------------------------------------------------
(Former Name, Former Address and Formal Fiscal Year,
if Changed Since Last Report)
Indicate by check [X] 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 April 3, 1999 was:
-------------
2,947,105 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
April 3, 1999 and January 2, 1999 1
Consolidated Statements of Income
& Retained Earnings for the Three
Months Ended April 3, 1999 and
April 4, 1998 2
Consolidated Statements of Cash Flows
for the Three Months Ended April 3, 1999
and April 4, 1998 3
Notes to Consolidated Financial Statements 4 - 6
Item 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations 7 - 11
PART II. OTHER INFORMATION
-----------------
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>
April 3, January 2,
1999 1999
(Unaudited) (Audited)
----------- ---------
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 2,863 $ 3,220
Accounts receivable (less allowance for doubtful accounts of
$1,214 and $1,286) 16,256 19,034
Inventories 11,663 10,743
Deferred income taxes 819 819
Prepaid expenses and other current assets 1,695 1,177
-------- --------
Total current assets 33,296 34,993
PROPERTY, PLANT AND EQUIPMENT, net 15,683 16,215
PATENTS, net 772 751
GOODWILL, net 4,073 4,454
OTHER ASSETS 195 204
-------- --------
Total assets $ 54,019 $ 56,617
======== ========
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable to banks $ -- $ 254
Current portion of long-term debt 890 1,280
Accounts payable 6,790 6,965
Accrued expenses & other current liabilities 4,189 4,034
Accrued payroll 2,353 4,307
Accrued commissions 2,029 2,609
Customer advances 2,797 1,810
Accrued warranty 987 1,055
Income taxes payable 1,396 1,233
-------- --------
Total current liabilities 21,431 23,547
LONG-TERM DEBT, net of current portion 10,568 9,638
DEFERRED INCOME TAXES 423 423
OTHER NONCURRENT LIABILITIES 588 735
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 50,000,000 shares;
issued 4,330,055 shares and 4,328,555 shares 43 43
Paid-in capital 15,575 15,505
Retained earnings 23,199 21,839
Cumulative translation adjustments (1,199) (192)
-------- --------
37,618 37,195
-------- --------
Treasury stock, 1,382,950 and 1,295,450 shares - at cost (16,609) (14,921)
-------- --------
Total shareholders' equity 21,009 22,274
-------- --------
Total liabilities and shareholders' equity $ 54,019 $ 56,617
======== ========
</TABLE>
See Notes to Consolidated Financial Statements
-1-
<PAGE> 4
K-TRON INTERNATIONAL, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME & RETAINED EARNINGS
(Dollars in Thousands except Share Data)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
---------------------
April 3, April 4,
1999 1998
---- ----
<S> <C> <C>
REVENUES $ 19,840 $ 21,455
COST OF REVENUES 10,719 11,815
---------- ----------
Gross profit 9,121 9,640
OPERATING EXPENSES:
Selling, general and administrative 6,606 6,855
Research and development 821 735
---------- ----------
7,427 7,590
---------- ----------
Operating income 1,694 2,050
INTEREST EXPENSE 134 208
---------- ----------
Income before income taxes 1,560 1,842
INCOME TAX PROVISION 200 535
---------- ----------
Net income 1,360 1,307
RETAINED EARNINGS
Beginning of period 21,839 15,246
---------- ----------
End of period $ 23,199 $ 16,553
========== ==========
EARNINGS PER SHARE
Basic $ .46 $ . 40
========== ==========
Diluted $ .44 $ .39
========== ==========
AVERAGE COMMON SHARES OUTSTANDING 2,976,000 3,236,000
========== ==========
AVERAGE COMMON AND COMMON EQUIVALENT
SHARES OUTSTANDING 3,076,000 3,331,000
========== ==========
</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>
Three Months Ended
------------------
April 3, April 4,
1999 1998
---- ----
OPERATING ACTIVITIES:
<S> <C> <C>
Net income $1,360 $1,307
Adjustment to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 803 734
Amortization of deferred gain on sale/leaseback transaction (96) (93)
Changes in assets and liabilities:
Accounts receivable, net 1,935 (1,486)
Inventories (1,421) (187)
Prepaid expenses and other current assets (624) 88
Other assets (7) 396
Accounts payable 241 305
Accrued expenses and other current liabilities (858) (941)
Accrued warranty (19) 64
Income taxes 194 157
------- -------
Net cash provided by operating activities 1,508 344
------- -------
INVESTING ACTIVITIES:
Capital expenditures (902) (756)
Investment in patents (40) (25)
------- -------
Net cash used in investing activities (942) (781)
------- -------
FINANCING ACTIVITIES:
Net repayments under notes payable to banks (244) (696)
Principal payments on long-term debt (421) (601)
Proceeds from issuance of long-term debt 1,500 405
Purchase of treasury stock (1,812) --
Proceeds from issuance of common stock 194 281
------- -------
Net cash used in financing activities (783) (611)
------- -------
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (140) (111)
------- -------
NET DECREASE IN CASH AND CASH EQUIVALENTS (357) (1,159)
------- -------
CASH AND CASH EQUIVALENTS
Beginning of period 3,220 5,154
------- -------
End of period $2,863 $3,995
======= =======
</TABLE>
See Notes to Consolidated Financial Statements
-3-
<PAGE> 6
K-TRON INTERNATIONAL, INC. & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
April 3, 1999
(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. and its subsidiaries ("K-Tron" or the "Company").
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 January 2, 1999 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
three months of 1999 and 1998 for interest was $.1 million and $.2 million,
respectively, and for income taxes was $.0 million and $.3 million,
respectively.
3. Earnings per Share
The Company adopted Statement of Financial Accounting Standards ("SFAS") No.
128, "Earnings per Share." SFAS No. 128 requires that the Company report Basic
and Diluted Earnings Per Share. Basic Earnings Per Share represents net income
less preferred dividends divided by the weighted average common shares
outstanding. Diluted Earnings Per Share is calculated similarly, except that the
denominator includes weighted average common shares outstanding plus the
dilutive effect of options, warrants, convertible securities and other
instruments with dilutive effects if exercised.
The Company's Basic and Diluted Earnings Per Share are calculated as follows:
<TABLE>
<CAPTION>
For the Three Months Ended April 3, 1999
--------------------------------------------
(Dollars in Thousands except Per Share Data)
Income Available
To Common Per Share
Shareholders Shares Amount
------------ ------ ------
<S> <C> <C> <C> <C>
Basic Net Income $1,360 2,976,000 $ .46
Common Share Equivalent
of Options Issued -- 100,000 (.02)
------ --------- --------
Diluted $1,360 3,076,000 $ .44
====== ========= ========
</TABLE>
-4-
<PAGE> 7
<TABLE>
<CAPTION>
For the Three Months Ended April 4, 1998
--------------------------------------------
(Dollars in Thousands except Per Share Data)
Income Available
To Common Per Share
Shareholders Shares Amount
------------ ------ ------
<S> <C> <C> <C> <C>
Basic Net Income $1,307 3,236,000 $ .40
Common Share Equivalent
of Options Issued -- 95,000 (.01)
------ --------- --------
Diluted $1,307 3,331,000 $ .39
====== ========= =========
</TABLE>
Diluted earnings per common share are based on the weighted average number of
common and common equivalent shares outstanding. Such average shares include the
weighted average number of common shares outstanding plus the shares issuable
upon exercise of stock options after the assumed repurchase of common shares
with the related proceeds.
4. Impact of New Accounting Pronouncements
In 1998, the Company adopted SFAS No. 130, "Reporting Comprehensive Income".
SFAS No. 130 establishes standards for the reporting and display of
comprehensive income and its components. Comprehensive income is the total of
net income and the current year change in cumulative translation adjustments
which is the only nonowner change in equity. For the three months in the period
ended April 3, 1999 and April 4, 1998, the following table sets forth the
Company's comprehensive income:
<TABLE>
<CAPTION>
Three Months Ended
-----------------------
April 3, April 4,
1999 1998
---- ----
(Dollars in Thousands)
<S> <C> <C>
Net Income $ 1,360 $ 1,307
Cumulative Translation Adjustments (1,007) (499)
------- -------
Comprehensive Income $ 353 $ 808
======= =======
</TABLE>
In 1998 the Company adopted the provisions of SFAS No. 131, "Disclosures About
Segments of an Enterprise and Related Information." SFAS No. 131 introduces a
new model for segment reporting called the management approach. The management
approach is based on the way that the chief operating decision maker organizes
segments within a company for making operating decisions and assessing
performance.
The Company is engaged in one business segment, the development, manufacturing
and marketing of gravimetric and volumetric feeders, pneumatic conveying systems
and related equipment. The Company operates in two primary geographic locations,
North America and Western Europe. For the three months in the period ended April
3, 1999 and April 4, 1998, the following tables set forth the Company's segment
information:
-5-
<PAGE> 8
<TABLE>
<CAPTION>
North Western Elimi- Consoli-
America Europe nations dated
------- ------ ------- -----
(in thousands)
<S> <C> <C> <C> <C>
QUARTER ENDED
APRIL 3, 1999:
Revenues-
Sales to unaffiliated customers $ 7,327 $12,513 $ -- $19,840
Sales to affiliates 1,011 521 (1,532) --
------- ------- ------- -------
Total sales $ 8,338 $13,034 $(1,532) $19,840
======= ======= ======= =======
Operating income $ 591 $ 1,107 $ (4) $ 1,694
======= ======= =======
Interest expense (134)
-------
Income before income taxes $ 1,560
=======
QUARTER ENDED
APRIL 4, 1998:
Revenues-
Sales to unaffiliated customers $ 9,218 $12,237 $ -- $21,455
Sales to affiliates 436 1,554 (1,990) --
------- ------- ------- -------
Total sales $ 9,654 $13,791 $(1,990) $21,455
======= ======= ======= =======
Operating income $ 1,350 $ 569 $ 131 $ 2,050
======= ======= =======
Interest expense (208)
-------
Income before income taxes $ 1,842
=======
</TABLE>
-6-
<PAGE> 9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.
Results of Operations
For the first three months of 1999 and 1998, the Company reported net
income of $1,360,000 and $1,307,000, respectively.
K-Tron is an international company which derived approximately 63% and
57% of its first quarter 1999 and 1998 revenues, respectively, from products
manufactured in, and services performed from, its facilities located outside the
United States, primarily in Europe. As such, the financial position and
performance of the Company is sensitive to changes in foreign currency exchange
rates ("foreign exchange rates"), which can affect both the translation of
financial statement items into U.S. dollars and the impact of transactions where
the revenues and related expenses may initially be accounted for in different
currencies, such as sales made from the Company's Swiss manufacturing facilities
in currencies other than the Swiss franc.
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
---------------------------------
April 3, 1999 April 4, 1998
------------- -------------
<S> <C> <C>
Total revenues 100.0% 100.0%
Cost of revenues 54.0 55.1
----- -----
Gross profit 46.0 44.9
Selling, general & administrative 33.3 31.9
Research & development 4.1 3.4
----- -----
Operating income 8.6 9.6
Interest .7 1.0
----- -----
Income before income taxes 7.9% 8.6%
===== =====
</TABLE>
<TABLE>
<CAPTION>
Backlog at end of period (at
April 3, 1999 foreign exchange
rates, in thousands) April 1999 December 1998 April 1998
---------- ------------- ----------
<S> <C> <C> <C>
$24,096 $21,375 $21,810
======= ======= =======
</TABLE>
-7-
<PAGE> 10
As noted above, more than half of the Company's revenues are normally
derived from activities in foreign jurisdictions. Consequently, the Company's
results can be significantly affected by changes in foreign exchange rates,
particularly in U.S. dollar exchange rates with respect to the Swiss franc,
German mark and euro and, to a lesser degree, the British pound sterling, French
franc and other currencies. When the U.S. dollar strengthens against these
currencies, the U.S. dollar value of non-U.S. dollar-based sales decreases. When
the U.S. dollar weakens against these currencies, the U.S. dollar value of
non-U.S. dollar-based sales increases. Correspondingly, the U.S. dollar value of
non-U.S. dollar-based costs increases when the U.S. dollar weakens and decreases
when the U.S. dollar strengthens. Overall, the Company typically receives a
majority of its revenues in currencies other than the U.S. dollar and, as such,
benefits from a weaker dollar and is adversely affected by a stronger dollar
relative to major currencies worldwide, especially those identified above.
Accordingly, changes in foreign exchange rates, and in particular a
strengthening of the U.S. dollar, may adversely affect the Company's total
revenues, gross profit and operating income as expressed in U.S. dollars.
In addition, revenues and income of the Company with respect to
particular transactions may be affected by changes in foreign exchange rates
where sales are made in currencies other than the functional currency of the
facility manufacturing the product subject to the sale, including in particular
the U.S. dollar/Swiss franc (for inter-company transactions) and the euro/Swiss
franc and German mark/Swiss franc exchange rates (for sales from the Company's
Swiss manufacturing facilities which are made in euros or German marks). For the
first three months of 1999 as well as the same period in 1998, the changes in
these and the U.S. dollar/euro and U.S. dollar/German mark exchange rates were
as follows:
<TABLE>
<CAPTION>
Three Months Ended
----------------------
April 3, April 4,
1999 1998
---- ----
<S> <C> <C> <C>
Average U.S. dollar equivalent of
one Swiss franc $.698 $.677
% change vs. prior year +3.1%
Average U.S. dollar equivalent of
one euro $1.12 N/A
Average U.S. dollar equivalent of
one German mark $.570 $.549
% change vs. prior year +3.8%
Average Swiss franc equivalent of
one German mark .817 .811
% change vs. prior year +0.7%
Average Swiss franc equivalent of
one euro 1.605 N/A
</TABLE>
Total revenues decreased by $1.6 million or 7.5% in the first quarter
of 1999 compared to the same period in 1998. The decrease in revenues would have
been greater except for the higher exchange translation rates of certain
currencies into U.S. dollars. The decrease in 1999 revenues was primarily in the
United States. If the average foreign exchange translation rates for the first
quarter of 1999 were applied to the same period in 1998, revenues would have
decreased 8.6% for the quarter.
-8-
<PAGE> 11
Gross profit as a percent of revenues improved to 46.0% for the first
quarter of 1999 as compared to 44.9% for the same period in 1998. The
improvement in gross margin in 1999 was primarily due to higher sales of more
profitable products in Europe.
Selling, general and administrative (SG&A) expense decreased by $.2
million or 3.6% for the first quarter of 1999 as compared to the same period in
1998. The first quarter decrease in SG&A was due to lower selling expenses in
local currencies, offset in part by higher foreign exchange translation rates.
As a percent of total revenues, SG&A was 33.3% in 1999 and 31.9% in 1998, with
the increase reflecting lower 1999 first quarter revenues.
Research and development (R&D) expenditures increased by $.1 million or
11.7% for the first quarter of 1999 as compared to the same period in 1998. R&D
expenses increased due to greater emphasis on the development of new products
and enhancements to existing products, as well as to higher foreign exchange
translation rates. R&D expense as a percent of total revenues was 4.1% in 1999
and 3.4% in 1998, reflecting in part lower 1999 first quarter revenues.
Interest expense decreased by $.1 million or 35.6% for the first
quarter of 1999 as compared to the same period in 1998, primarily due to lower
debt levels and lower rates on some loans.
The effective tax rate for the first quarter of 1999 was 12.8% compared
to 29.0% for the same period in 1998. The effective tax rate for 1999 was lower
than the same period in 1998 due to reduced income in the United States and
increased income in Switzerland, enabling the Company to utilize foreign net
operating loss carryforwards with full valuation allowances.
The backlog increased by 12.7% at the end of the first quarter when
compared to the end of 1998 and by 10.5% when compared to the same period in
1998, in each case at constant foreign exchange rates. The increase was
primarily in the United States.
Liquidity and Capital Resources
The Company's capitalization as of the end of the first quarter of 1999
and as of the end of fiscal years 1998 and 1997 is set forth below:
<TABLE>
<CAPTION>
April 3, January 2, January 3,
(Dollars in Thousands) 1999 1999 1998
---------- ---------- ---------------
<S> <C> <C> <C>
Short-term debt, including current
portion of long-term debt $ 890 $ 1,534 $ 3,148
Long-term debt 10,568 9,638 10,619
------- ------- -------
Total debt 11,458 11,172 13,767
Shareholders' equity 21,009 22,274 18,892
------- ------- -------
Total debt and shareholders' equity $32,467 $33,446 $32,659
======= ======= =======
Percent total debt to total capitalization 35% 33% 42%
Percent long-term debt to equity 50% 43% 56%
Percent total debt to equity 55% 50% 73%
</TABLE>
-9-
<PAGE> 12
Total debt increased by $.3 million in the first three months of 1999,
and this increase would have been $.8 million using a constant foreign exchange
rate. U.S. debt increased by $1.4 million while European debt decreased by $1.1
million ($.6 million at a constant foreign exchange rate). The increase in U.S.
debt was due to the borrowing of $1.5 million to help finance the January 1999
repurchase of 100,000 shares of the Company's common stock for $1.8 million. At
April 3, 1999, the Company had $3.5 million of availability under its U.S. loan
agreements and $4.1 million of availability under its Swiss loan agreements.
At April 3, 1999, there was working capital of $11.9 million as
compared to $11.4 million at January 2, 1999, and the ratio of current assets to
current liabilities at those dates was 1.55 and 1.49, respectively.
In the first three months of 1999 and 1998, the Company utilized
internally-generated funds to meet its working capital needs.
Net cash provided by operating activities was $1.5 million in the first
three months of 1999 as compared to $.3 million in the same period of 1998. The
higher operating cash flow for 1999 was primarily due to a decrease in accounts
receivable.
Net cash used in investing activities in the first three months of 1999
and 1998 was for capital additions.
Net cash used in financing activities in the first three months of 1999
was primarily for the repurchase of 100,000 shares of the Company's common stock
for $1.8 million and the reduction of debt. The cash was provided by operating
activities and the $1.5 million borrowing which was used to finance the share
repurchase.
Changes in foreign exchange rates, particularly with respect to the
Swiss franc and Deutsche mark, caused a translation adjustment decrease in
shareholders' equity of $1.0 million in the first three months of 1999.
Readiness for Year 2000
The Company has substantially completed an evaluation of its
information technology infrastructure for Year 2000 compliance and has
substantially implemented its Year 2000 compliance strategy. The cost to modify
its information technology infrastructure to be Year 2000 compliant has not been
and is not expected to be material to its financial condition or results of
operations. The Company does not anticipate any material disruptions in its
business as a result of any failure by the Company to be Year 2000 compliant.
The Company anticipates having all systems Year 2000 compliant no later
than September 30, 1999 and has not developed a contingency plan. If Year 2000
compliance issues are discovered, the Company then will evaluate the need for a
contingency plan relative to those issues.
-10-
<PAGE> 13
The Company is also in the process of obtaining information concerning
the Year 2000 compliance status of its significant suppliers, customers and
business partners to determine the extent to which the Company is vulnerable to
these third parties' failure to remedy their Year 2000 problems. There can be no
assurance that such suppliers, customers and business partners are or will be
Year 2000 compliant. The risk to the Company resulting from the failure of third
parties in the public and private sector to attain Year 2000 readiness is the
same as for other firms in the Company's industry or other business enterprises
generally and could involve many different types of disruption to the Company's
business.
The costs to complete the Company's Year 2000 evaluation and to secure
Year 2000 compliance are based on management's best estimates. These estimates
were derived using numerous assumptions, including continued availability of
resources, third party contingency plans and other factors. However, there can
be no assurance that these estimates will be achieved and actual results could
differ materially from those anticipated. The following are representative of
the types of risks that could result in the event a critical component of the
Company's information systems, factories or facilities fails to be Year 2000
ready, or there is a similar failure by one or more major third party suppliers
to the Company: (i) information systems--could include interruptions or
disruptions of business and transaction processing such as customer billing,
payroll, accounts payable and other operating and information processes, until
systems can be remedied or replaced; (ii) factories and facilities--could
include interruptions or disruptions of manufacturing processes and facilities
with delays in delivery of products, until non-compliant conditions or
components can be remedied or replaced; and (iii) major suppliers to the
Company--could include interruptions or disruptions of the supply of materials
and supplies which could cause interruptions or disruptions of manufacturing and
delays in delivery of products, until the third party supplier can remedy the
problem or contingency measures can be implemented.
-11-
<PAGE> 14
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits
27.1 Financial Data Schedule
(b) Reports on Form 8-K
There were no reports on Form 8-K for the three months ended
April 3, 1999.
-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 its behalf by the
undersigned thereunto duly authorized.
K-TRON INTERNATIONAL, INC.
Date: May 6, 1999 By: /s/ Alan R. Sukoneck
-----------------------
Alan R. Sukoneck
Vice President, Chief Accounting
& Tax Officer
(Duly authorized officer, acting
principal financial officer and chief
accounting officer of the registrant)
-13-
<PAGE> 16
EXHIBIT INDEX
Exhibit Number Description
-------------- -----------
27.1 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-01-2000
<PERIOD-END> APR-03-1999
<CASH> 2,863
<SECURITIES> 0
<RECEIVABLES> 17,470
<ALLOWANCES> 1,214
<INVENTORY> 11,663
<CURRENT-ASSETS> 33,296
<PP&E> 42,143
<DEPRECIATION> 26,460
<TOTAL-ASSETS> 54,019
<CURRENT-LIABILITIES> 21,431
<BONDS> 10,568
0
0
<COMMON> 43
<OTHER-SE> 20,966
<TOTAL-LIABILITY-AND-EQUITY> 54,019
<SALES> 19,840
<TOTAL-REVENUES> 19,840
<CGS> 10,719
<TOTAL-COSTS> 10,719
<OTHER-EXPENSES> 7,427
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 134
<INCOME-PRETAX> 1,560
<INCOME-TAX> 200
<INCOME-CONTINUING> 1,360
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,360
<EPS-PRIMARY> .46
<EPS-DILUTED> .44
</TABLE>
