FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark one)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934.
For the quarterly period ended March 31, 1995
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 1-8277
ACME ELECTRIC CORPORATION
(Exact name of registrant as specified in its charter)
STATE OF NEW YORK 16-0324980
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
400 Quaker Road, East Aurora, New York 14052
(Address of principal executive offices)
716/655-3800
(Telephone Number)
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.
Indicate the number of shares outstanding of each of the registrant's
classes of common stock, as of the latest practicable date.
Common Stock, Par Value $1.00 Per Share 4,977,271
ACME ELECTRIC CORPORATION
<TABLE>
PART I - FINANCIAL INFORMATION
ITEM I - FINANCIAL STATEMENTS
<CAPTION>
CONSOLIDATED CONDENSED BALANCE SHEET
Unaudited Audited
March 31, 1995 June 30, 1994
(000's) (000's)
<S> <C> <C>
ASSETS
Current Assets:
Cash $ 59 $ 160
Accounts receivable, net 16,081 12,999
Inventories 17,417 12,739
Income taxes receivable 67 223
Deferred income taxes-current portion 1,774 1,618
Other current assets 3,145 2,799
Total current assets 38,543 30,538
Intangible assets, net 326 327
Other Assets 2,354 4,020
Property, plant and equipment, at cost 30,845 27,257
Less accumulated depreciation (17,000) (15,569)
Idle facilities held for sale, net 981 981
Total property, plant & equipment, net 14,826 12,669
Total Assets $56,049 $47,554
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current portion of long-term debt $ 1,446 $ 1,457
Accounts payable 6,982 4,232
Accrued expenses 3,821 3,511
Accrued restructuring costs -- 873
Total current liabilities 12,249 10,073
Long-term debt 24,979 19,590
Other long-term liabilities 1,563 2,276
Deferred income taxes 1,049 1,049
Total Liabilities 39,840 32,988
Shareholders' Equity:
Common stock, Par Value $1.00
Authorized 8,000,000 shares
Issued 4,977,271 and 4,876,491 4,977 4,876
Capital in excess of par value 18,690 18,161
Accumulated deficit (6,638) (8,064)
Less: Treasury stock at cost
(77,457 and 45,716 Shares) (820) (407)
Total shareholders' equity 16,209 14,566
Total Liabilities and
Shareholders' Equity $56,049 $47,554
</TABLE>
See accompanying Notes to Consolidated Condensed Financial Statements.
<TABLE>
<CAPTION>
CONSOLIDATED CONDENSED INCOME STATEMENT
(Unaudited)
13 Weeks 39 Weeks
Ended Ended
03/31/95 04/01/94 03/31/95 04/01/94
(000's) (000's) (000's) (000's)
<S> <C> <C> <C> <C>
NET SALES $24,184 $18,250 $66,438 $56,611
COSTS AND EXPENSES:
Cost of Goods Sold 18,090 13,653 47,960 41,335
Research and Engineering
Expense 1,170 1,433 3,722 4,374
Selling and Administrative
Expense 3,744 3,682 11,008 10,961
Restructuring Charge -- 1,891 -- 1,891
Impairment Charge -- 5,584 -- 5,584
Interest Expense 573 1,026 1,366 2,108
Equity in Loss of
Unconsolidated Subsidiary 39 -- 39 --
TOTAL COSTS AND EXPENSES 23,616 27,269 64,095 66,253
NET INCOME (LOSS)
BEFORE TAXES 568 (9,019) 2,343 (9,642)
INCOME TAX (BENEFIT) EXPENSE 234 (3,192) 917 (3,423)
NET INCOME (LOSS) $ 334 $(5,827) $ 1,426 $(6,219)
Weighted Average Number of
Shares Outstanding 4,937,221 4,858,906 4,913,167 4,853,104
NET INCOME (LOSS) PER SHARE $.07 $(1.20) $.29 $(1.28)
</TABLE>
See accompanying Notes to Consolidated Condensed Financial Statements
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
39 Weeks Ended 39 Weeks Ended
March 31, 1995 April 1, 1994
(000's) (000's)
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 1,426 $(6,219)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation and amortization 1,482 2,034
(Gain) Loss on sale/retirement
of fixed assets 18 (243)
Loss on impaired asset write-down -- 5,584
Restructuring costs - F/Y '91 -- (319)
Change in assets and liabilities:
Accounts receivable, net (3,082) 2,506
Inventories (4,678) 374
Prepaid and deferred income taxes 714 (3,477)
Other assets (162) 27
Accrued restructuring costs - F/Y '94 (899) 1,515
Accounts payable 2,750 486
Accrued compensation and other 364 272
Other Long-term Liabilities (706) --
Net cash provided by (used in)
operating activities (2,773) 2,540
Cash flows from investing activities:
Investment in unconsolidated subsidiary (100) --
Proceeds from dispositions of fixed assets -- 4,138
Additions to property, plant and
equipment (3,657) (4,249)
Intangibles acquired -- (1,550)
Net cash used in investing activities (3,757) (1,661)
Cash flows from financing activities:
Borrowings on Life Insurance Policy 834 --
Net increase (decrease) of borrowings 5,378 (879)
Proceeds from employee stock purchase
and stock option plans 630 155
Reduction of long-term debt -- (62)
Purchase of treasury stock (413) --
Net cash provided by (used in) financing
activities 6,429 (786)
Net increase (decrease) in cash (101) 93
Cash at beginning of period 160 231
Cash end of period $ 59 $ 324
</TABLE>
See accompanying Notes to Consolidated Condensed Financial Statements.
NOTES TO CONSOLIDATED CONDENSED
FINANCIAL STATEMENTS
(Unaudited)
1. The Consolidated Condensed Balance Sheet of Acme Electric
Corporation ("Registrant") at March 31, 1995, the Consolidated
Condensed Statement of Operations for the thirteen- and thirty-
nine-week periods ended March 31, 1995, and April 1, 1994, and
the Consolidated Statement of Cash Flows for the thirty-nine
weeks ended March 31, 1995, and April 1, 1994, include all
adjustments for a fair representation of the results for such
periods. Several non-recurring adjustments relating to the
Company's restructuring and asset impairment were recorded in
the prior year's quarter ended April 1, 1994, and are more fully
discussed in Note 3 below.
The unaudited financial data included herein was compiled in
accordance with the "Summary of Significant Accounting
Principles and Practices" (Note 1 of Notes to Consolidated
Financial Statements) contained in the Registrant's 1994 Annual
Report filed on Form 10-K.
2. Inventories included in the Consolidated Condensed Balance Sheet
are as follows:
March 31, 1995 June 30, 1994
(000's) (000's)
Raw Material $ 5,661 $ 3,765
Work-In-Process 5,615 5,190
Finished Goods 6,141 3,784
$17,417 $12,739
3. The Company had recorded in the prior fiscal year (April 1, 1994)
a one-time charge to pre-tax earnings of $7,475,000. Included in
this prior year charge was an asset impairment write down of
$2,400,000 of intangible assets and $3,184,000 of FNC facility and
equipment costs. The Company had further accrued restructuring
reserves of another $1,891,000, related to its aerospace business.
As of March 31, 1995, $400,000 of reserve remained on the balance
sheet.
Item 2
Management's Discussion and Analysis of
Financial Condition and Results of Operations
The following is Management's discussion and analysis of certain
significant factors which have affected the Registrant's financial
condition and results of operations during the periods included in the
accompanying consolidated financial statements.
A summary of the period-to-period change in the principal items
included in the consolidated balance sheets and which affect financial
condition follows:
Comparison of Balance Sheets at
March 31, 1995
and
June 30, 1994
Increase (Decrease)
(000's)
Current Assets $8,005
Property, Plant & Equipment Net 2,157
Other Assets (1,667)
$8,495
Current Liabilities $2,176
Long-Term Debt 5,389
Other Liabilities (713)
Shareholders' Equity 1,643
$8,495
Current assets at March 31, 1995, reflect a net increase of
approximately $8,005,000, or 26.2%, compared to the June 30, 1994,
level, primarily due to increased inventories ($4,678,000) and accounts
receivables ($3,082,000). The increase of inventory in the third
quarter ($1,175,000) was due, in part, to slow down in shipment orders
received from a major Original Equipment Manufacturer (OEM) customer,
with anticipated return to higher volume requirements in the fourth
quarter, combined with increased inventory of UPS products in
anticipation of support requirements for the AT&T program effort.
Year-to-date inventories have increased a total of $4,678,000,
primarily due to increased production and sales activity (year-to-
date), coupled with planned safety stocks to support the second and
third quarter business interruption associated with the Electronics
Division's move into the new plant in Cuba, NY. The accounts the quarter,
due to the higher sales volume activity achieved for the
year and, in particular, the third quarter (a record sales quarter).
The net increase in property, plant and equipment of $2,157,000,
or 17%, is the combined result of current year capital expenditures,
including leased and purchased machinery ($2,421,000) and new plant
construction in progress ($2,136,000), in part offset by depreciation
expense of $1,482,000.
Intangibles and other assets decreased $1,667,000, or 37.8%,
primarily due to the reduction or utilization of a portion of the
deferred tax asset against the accrued income tax expense recorded
year-to-date ($917,000), combined with a net reduction in the cash
surrender value of certain life insurance policies due to increased
policy loans of $834,000.
Current liabilities have increased $2,176,000 (21.6%) from the
June 30, 1994, level due to a combination of factors, including a
$2,750,000 increase in accounts payable and accrued expenses as a
result of increased production activity and higher inventory levels
in support of the increased sales volume incurred. This increase in
accounts payable and accrued costs was partially offset by the
reduction ($873,000 of cash payments) in the restructuring reserve
recorded in the prior fiscal year associated with the consolidation of
the aerospace business.
Long-term debt increased $5,389,000, or approximately 27.5%, from
June 30, 1994. This net increase is reflective of funding required for
the increased inventories, accounts receivable, fixed asset additions,
and payment of accrued restructuring costs.
The increase in shareholders' equity of $1,643,000 is primarily
due to year-to-date net profit of $1,426,000, plus the net proceeds
from stock-selling programs received since June 30, 1994.
The Company has financed its working capital requirements, in
part, through operations, with the balance coming from increased bank
borrowings and borrowing against the cash surrender value on officers'
life policies. The year-to-date new plant construction costs
($1,236,000) and equipment expenditures ($2,421,000) have also been
funded with increased borrowings against the line of credit. The
Company expects that operating activities for the remainder of fiscal
1995 will produce cash to offset any increase in working capital caused
by increased sales, in addition to providing adequate funds to support
the required remaining capital expenditures through the end of the
current fiscal year. Within this fiscal year (FYE 6/30/95), it is the
Company's intention to select and begin implementation of a new
information system. The Company has in place a financing agreement
which provides for a secured term loan with a current principal balance
of $6,410,000 and a $19,000,000 secured revolving credit line, which it
believes will provide sufficient liquidity for the near term. The
Company further anticipates, within the current fiscal year, the
receipt of approximately $1,900,000 of deferred and low interest loans
constructed facility in Cuba, NY. It is the Company's intent, within
the next six months, to revisit its capital structure and pursue the
appropriate financial alternative that will provide a basis for
continued growth in the long term.
The Company has been informed by the New York State Department of
Environmental Conservation (DEC) that the Municipal Waste Landfill,
Cuba, NY, has been listed in the New York State Registry of Inactive
Hazardous Waste Disposal Sites as a Class "2" site requiring
remediation. Acme Electric Corporation has been determined by the DEC
to be a potentially responsible party (PRP) by virtue of its disposal
of wastes at the site. As a PRP, the Company may be subject to
liability for the cost of site investigation and remediation. At this
time, there is not enough information available from which any
reasonable estimate of such cost can be made. The Company did have
insurance policies in effect during the period that waste was disposed
of at the site, which the Company believes provide coverage.
The Company has sought amendments to its License Agreement
("License") with DAUG-HOPPECKE GESELLSCHAFT FUR BATTERIESYSTEME MBH
("DAHO") and a separate agreement with DAHO and its affiliate, Hoppecke
Battery Systems, Inc. ("HBSI"), and HBSI's parent company,
ACCUMULATORENWERKE HOPPECKE Carl Zoellner & Sohn GmbH & Co KG
("Hoppecke"), to resolve issues pertaining to, inter alia, minimum
royalties, extension of the License, and repair of products that
exhibit certain defects. Negotiations, to date, have been
unsuccessful, and the matter may eventually be submitted to
arbitration for resolution. The Company does not believe that the
outcome of this matter will have a materially adverse impact on its
financial condition.
Thirteen- and thirty-nine-week periods ended March 31, 1995,
compared with the comparable thirteen- and thirty-nine-week periods
ended April 1, 1994
Net sales for the thirteen- and thirty-nine-week periods ended
March 31, 1995, were $24,184,000 and $66,438,000, respectively,
compared with $18,250,000 and $56,611,000 for the comparable periods of
a year earlier, or an increase over the prior year's same quarter of
32.5% and an increase of 17.3% year-to-date from the comparable prior-
year period. Net sales have increased over the prior year due to
increased sales for custom power supplies from several large OEM
customers participating in the communications and computer industries,
coupled with a strong general increase in market demand for transformer
and standard power supply products sold through distribution.
Cost of goods sold as a percentage of sales for the thirteen- and
thirty-nine-week periods ended March 31, 1995, were 74.8% and 72.2%,
respectively, compared to 74.8% and 73.0% for the comparable periods of
the prior year. While the year-to-date cost percentage reflects slight
improvement over the same period of a year ago (the quarter-to-quarter
being the same) due, in part, to increased sales volumes and lower
overheads at the Aerospace Division as a result of the F/Y '94
restructuring, certain one-time charges were included in the prior year
comparative period amounts. The prior year comparative quarter
included one-time charges of $589,000, relating to the write down of
certain long-term contract deferred costs on the MD-90 program and
$250,000 accrued product warranty charges. The current year quarter
and year-to-date profit margins have declined slightly, compared with
the prior year periods' margins, after adjusting for these one-time
charge effects. This margin decline is due to significant raw material
price increases associated primarily with transformer products, along
with higher than planned manufacturing overheads in the Electronics
Division, as a result of the ongoing transition (move) into the new
Cuba, NY, plant. Transformer sale price increases were initiated
February 1 in an effort to pass through the higher material costs, but
full recovery is not anticipated. Further, the consolidation of the
Aerospace Division is taking longer than planned. The Division is
delinquent on deliveries to several major customers and is having to
spend excessive amounts of time and money to quickly rectify the
situation, resulting in higher direct labor, manufacturing overhead and
material costs. The Company is working to solve the aforementioned
cost of goods sold issues by August 1995.
Research and engineering expenses as a percent of net sales for
the thirteen-and thirty-nine-week periods ended March 31, 1995, were
4.8% and 5.6%, respectively, a decrease from the 7.8% and 7.7%
experienced for the similar periods of a year ago. This decrease
primarily reflects decreased costs due to overhead reductions,
resultant from the Aerospace Division fiscal '94 restructuring coupled
with an overall higher sales volume.
Selling and administrative costs as a percent of net sales
decreased from 20.1% and 19.4%, respectively, for the thirteen- and
thirty-nine-week periods ended April 1, 1994, to 15.5% and 16.6% for
the current thirteen- and thirty-nine-week periods ended March 31,
1995. The decrease is primarily due to the higher current year sales,
combined with the restructuring effects in the Aerospace Division,
where staff reductions were made in the fourth quarter of fiscal 1994
as a result of resizing and consolidating the business, along with
termination of sales representatives and decreased quarterly
amortization expenses ($66,000) associated with the fiscal 1994
write-off of the FNC battery license asset. In addition, certain
one-time sales commissions in the electronics business were paid in the
prior year's first quarter and did not repeat in the current year.
The Company recorded a before-tax restructuring and impairment
charge associated with its aerospace business of $7,475,000 in the
prior year's quarter ended April 1, 1994. Revised assumptions
regarding the size of available markets and the ability to replace
existing battery technologies with FNC technology in such markets
indicated that the value of certain FNC assets would not be fully
recovered. The Company reduced the carrying value of the license
intangibles ($2,400,000) and AES assets ($3,184,000) associated with
the production of FNC batteries based upon estimates of future cash
flows through the license period. The Company consequently determined
to consolidate URDC and AES in the Tempe, Arizona, location under a
newly formed Aerospace Division in order to create a stronger combined
business with a broader power systems focus. A $1,891,000
restructuring charge was accrued as a result of this decision. The
consolidation and associated business disruption has continued through
the third quarter ended March 31, 1995, and will continue to have
negative impact into the fourth quarter of F/Y 1995.
Interest expense as a percent of net sales for the thirteen- and
thirty-nine-week periods ended March 31, 1995, decreased to
approximately 2.4% and 2.0%, respectively, from 5.6% and 3.7%,
respectively, for the comparable periods of the prior year. This
decrease is reflective of the termination of interest collar contracts
(in F/Y '94) offset by increases in borrowings and rates. Collar
interest and termination costs were approximately $800,000 and
$1,200,000, respectively, in the prior year's thirteen- and thirty-
nine-week periods ended April 1, 1994.
Income taxes as a percent of income before taxes for the thirteen-
and thirty-nine-week periods ended March 31, 1995, increased to
approximately 41.2% and 39.1%, respectively, compared with 35.4% and
35.5%, respectively, for the comparable periods a year earlier. This
variation in the effective tax rate is primarily the result of the
limiting effect that minimum taxes had on the full recognition of tax
benefit associated with fiscal 1994 operating loss. Therefore, a lower
effective tax rate resulted in the prior period when recording tax
benefit (asset) on the loss incurred in that period.
Backlog at March 31, 1995, was $20,025,000, compared with
$14,710,000 at the end of the comparable period of the prior
year.
OTHER INFORMATION
Item 5. Other Information
a. Exhibits - News Release dated April 28, 1995,
announcing results of operations for the
thirteen- and thirty-nine-week periods ended
March 31, 1995.
- Interim Report dated May 1, 1995, for the
third quarter ended March 31, 1995.
b. There were no reports filed on Form 8-K during the
thirty-nine-week period ended March 31, 1995.
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.
ACME ELECTRIC CORPORATION
(Registrant)
Date: May 15, 1995 _________________________
Robert J. McKenna
Chairman, President and
Chief Executive Officer
Date: May 15, 1995 __________________________
Daniel K. Corwin
Senior Vice President and
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1995
<PERIOD-END> MAR-31-1995
<CASH> 59
<SECURITIES> 0
<RECEIVABLES> 16,428
<ALLOWANCES> 347
<INVENTORY> 17,417
<CURRENT-ASSETS> 38,543
<PP&E> 32,136
<DEPRECIATION> 17,310
<TOTAL-ASSETS> 56,049
<CURRENT-LIABILITIES> 12,249
<BONDS> 24,979
<COMMON> 23,667
0
0
<OTHER-SE> (7,458)
<TOTAL-LIABILITY-AND-EQUITY> 56,049
<SALES> 24,184
<TOTAL-REVENUES> 24,184
<CGS> 18,090
<TOTAL-COSTS> 23,004
<OTHER-EXPENSES> 39
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 573
<INCOME-PRETAX> 568
<INCOME-TAX> 234
<INCOME-CONTINUING> 334
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 334
<EPS-PRIMARY> .07
<EPS-DILUTED> .07
</TABLE>
ACME ELECTRIC CORPORATION
INTERIM REPORT 3
39 WEEKS ENDED MARCH 31, 1995
To Our Shareholders:
Progress continued in the third quarter with record sales of $24,184,000
and net income of $334,000, compared to sales of $18,250,000 and a net loss
of $5,827,000 for the comparable period of last year.
Included in the quarter net loss of the prior year were one-time charges
net of tax totaling $4,836,000. These charges consisted of $1,222,000 for
the restructuring of the aerospace business and $3,614,000 for the FNC
battery asset impairment write down (facility and License).
Year-to-date sales are up 17% and profits totalled $1,426,000, compared
with a net loss of $6,219,000 for the first three quarters of last year.
We are moving in the right direction, but much work still needs to be done.
In March, our Electronics Division completed its move into a new divisional
headquarters and electronics assembly and test facility. The Division did
an outstanding job of completing this major task, while simultaneously
increasing production rates over 30% due to increased demand for its
products.
This past quarter, the Electronics Division began shipping production
quantities of a new power supply to Honeywell. Our relationship with
Honeywell is excellent, and we expect to expand our business with them.
The new alliance formed with AT&T for the marketing of uninterruptible
power supplies continues to develop as we had planned. Our product is
being well received by AT&T's customers, and new opportunities are
continually surfacing.
The consolidation of our Aerospace Division in Tempe, Arizona, is not yet
complete. We have become delinquent in our promised deliveries to several
major customers and have been providing a great number of resources from
our other divisions to quickly rectify this situation. We will carefully
monitor the progress of this business over the next couple of months.
Acme Transformer Division has launched a Latin American market-development
initiative that looks quite promising. A new Latin American sales manager
has identified several new opportunities that the Division is now pursuing.
Sales for the Division remain brisk in all product areas, but margins
remain pressured because of escalating material costs. Shipments of
private branded transformers to Siemens commenced this quarter and are
expected to grow as the new program rolls out on a regionally sequenced
basis.
We have also formed a joint-venture company in Europe named Acme Electric
Limited. The new company will manufacture and sell uninterruptible power
supplies to the European market. Our venture partner is Qualtron, a
Dublin, Ireland, based electronics company. Patrick Dunne, recently named
Managing Director of Acme Electric Ltd., has a strong background in
European market development of computer peripheral equipment and will serve
our interests well.
In summary, we have now had four successive profitable quarters and are
making good progress. Long-term opportunities in both our aerospace and
commercial markets look excellent, but, in the short term, much work needs
to be done to complete the transition of our aerospace business.
FOR THE BOARD OF DIRECTORS
Robert J. McKenna
Chairman and CEO
May 1, 1995
<PAGE>
ACME ELECTRIC CORPORATION
East Aurora, New York
The following tables set forth certain unaudited financial information for
the thirty-nine-week periods ended March 31, 1995, and April 1, 1994 (in
thousands, except for per share data):
<TABLE>
CONSOLIDATED BALANCE SHEET
03/31/95 04/01/94 06/30/94
<S> <C> <C> <C>
Current Assets................. $38,543 $30,145 $30,538
Fixed Assets and Other......... 17,506 16,519 17,016
Total........................ $56,049 $46,664 $47,554
Current Liabilities............ $12,249 $10,624 $10,073
Long-Term Debt................. 27,591 22,059 22,915
Shareholders' Equity........... 16,209 13,981 14,566
Total........................ $56,049 $46,664 $47,554
</TABLE>
<TABLE>
CONSOLIDATED INCOME STATEMENT
13 Weeks 39 Weeks F/Y
Ended Ended Ended
03/31/95 04/01/94 03/31/95 04/01/94 06/30/95
<S> <C> <C> <C> <C> <C>
Net Sales $24,184 $18,250 $66,438 $56,611 $76,233
Net Income (Loss) 334 (5,827 1,426 (6,219) (5,659)
Earnings (Loss) Per Share $.07 $(1.20) $.29 $(1.28) $(1.17)
Weighted Number of Shares
Outstanding Used to
Compute Income Per
Common Share 4,937,221 4,858,906 4,913,167 4,853,104 4,854,061
</TABLE>
FOR IMMEDIATE RELEASE
ACME ELECTRIC REPORTS THIRD QUARTER RESULTS
EAST AURORA, N.Y., April 28, 1995 -- Acme Electric Corporation (NYSE:ACE)
today reported that the thirteen-week-period ending March 31, 1995,
produced record sales of $24,184,000. Net income for the quarter was of
$334,000, or $.07 per share, compared to sales of $18,250,000 and a net
loss of $5,827,000, or $1.20 per share, for the comparable period of last
year. Included in the quarter net loss of the prior year were one-time
charges net of tax totaling $4,836,000.
Sales for the thirty-nine-week period ending March 31, 1995, totaled
$66,438,000, with net income of $1,426,000, or $.29 per share, compared to
sales of $56,611,000, with a net loss of $6,219,000, or $1.28 per share,
for the comparable period of the prior year.
Robert J. McKenna, Chairman and CEO, stated that, "Sales in our commercial
businesses are strong, and we expect continued improvement will occur. The
restructured Aerospace Division continues to struggle with meeting its
commitments effectively, and we are providing added resources from our
other divisions to rectify this situation."
Mr. McKenna also reported that, "The Electronics Division began shipping
production quantities of a new power supply for Honeywell, and the alliance
with AT&T for the marketing of uninterruptible power supplies continues to
develop as planned. The Acme Transformer Division has launched a Latin
American market-development initiative to identify new opportunities in
that market, and its program to provide private-branded transformers to
Siemens has commenced. Margins remain pressured because of escalating
material costs."
Mr. McKenna also announced that the Company has formed a joint venture
named Acme Electric Limited with Qualtron, a Dublin, Ireland, based
electronics company, to manufacture and sell uninterruptible power supplies
to the European market. He stated that, "We are excited about this
opportunity to apply our experience in the design and manufacture of these
products to a market that offers us such great potential."
Founded in 1917, Acme Electric Corporation is a leader in the design and
manufacture of power conversion products for electronic and electric
systems for industrial, commercial, residential, and military and aerospace
applications. Corporate headquarters are in East Aurora, N.Y., with
operations in Cuba, N.Y., Lumberton, N.C., and Tempe, Ariz.
# # # #
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ACME ELECTRIC CORPORATION
<TABLE>
<CAPTION>
Comparative Analysis
(in thousands, except for per share data)
13 Weeks 13 Weeks 39 Weeks 39 Weeks
Ended Ended Ended Ended
Mar. 31, 1995 Apr. 1, 1994 Mar. 31, 1995 Apr. 1, 1994
<S> <C> <C> <C> <C>
Net Sales $24,184 $18,250 $66,438 $56,611
Net Income (Loss) 334 (5,827) 1,426 (6,219)
Earnings (Loss)
per share $.07 $(1.20) $.29 $(1.28)
Weighted Number of
Shares Outstanding
Used to Compute
Income Per Common
Share 4,937,221 4,858,906 4,913,167 4,853,104
</TABLE>
CONTACT: DAVID ANDERSON
(716) 655-3800
