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 DECEMBER 29, 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.
(1) YES x NO ____
(2) YES x NO ____
Indicate the number of shares outstanding of each of the registrant's classes
of common stock, as of the latest practicable date.
Class Outstanding at December 29, 1995
Common Stock, Par Value $1.00 Per Share 5,008,774
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
ACME ELECTRIC CORPORATION
PART I - FINANCIAL INFORMATION
ITEM I - FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEET
Unaudited Audited
December 29, 1995 June 30, 1995
(000's) (000's)
<S> <C> <C>
ASSETS
Current Assets:
Cash $ 22 $ 386
Accounts receivable, net 16,133 17,253
Inventories, net 17,734 17,352
Income taxes receivable -- 325
Deferred income taxes 1,595 1,303
Other current assets 3,039 2,818
------ ------
Total current assets 38,523 39,437
------ ------
Property, plant and equipment, at cost 31,960 31,143
Less accumulated depreciation (18,563) (17,467)
Facilities held for sale, net 981 981
------ ------
Total property, plant & equipment, net 14,378 14,657
------ ------
Intangible assets, net 226 226
------ ------
Other assets 1,727 1,858
------ ------
Total Assets $54,854 $56,178
====== ======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 6,543 $ 9,307
Accrued compensation and other 3,727 3,700
Current portion of long-term debt 1,443 1,440
------ ------
Total current liabilities 11,713 14,447
Long-term debt 26,297 24,419
Other long-term liabilities 1,450 1,463
------ ------
Total Liabilities $39,460 $40,329
------ ------
Shareholders' Equity:
Common stock, Par Value $1.00
Authorized 8,000,000 shares
Issued 5,008,774 and 5,002,977 5,009 5,003
Capital in excess of par value 18,852 18,807
Accumulated deficit (7,573) (7,072)
Less: Treasury stock at cost
(80,699 and 80,551 Shares) (894) (889)
------ ------
Total shareholders' equity 15,394 15,849
------ ------
Total Liabilities and
Shareholders' Equity $54,854 $56,178
====== ======
</TABLE>
See accompanying Notes to Consolidated Financial Statements.<PAGE>
<PAGE>
<TABLE>
<CAPTION>
ACME ELECTRIC CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
13 Weeks 13 Weeks 26 Weeks 26 Weeks
Ended Ended Ended Ended
12/29/95 12/30/94 12/29/95 12/30/94
(000's) (000's) (000's) (000's)
<S> <C> <C> <C> <C>
NET SALES $23,425 $21,320 $49,356 $42,254
------ ------ ------ ------
COSTS AND EXPENSES:
Cost of Goods Sold 19,096 15,475 38,856 29,870
Research and Engineering
Expense 1,149 1,320 2,296 2,552
Selling and Administrative
Expense 3,877 3,535 7,743 7,264
Interest Expense 605 439 1,190 793
------ ------ ------ ------
TOTAL COSTS AND EXPENSES 24,727 20,769 50,085 40,479
------ ------ ------ ------
INCOME (LOSS) BEFORE TAXES (1,302) 551 (729) 1,775
INCOME TAX EXPENSE (BENEFIT) (468) 212 (228) 683
------ ------ ------ ------
NET INCOME (LOSS) $ (834) $ 339 $ (501) $ 1,092
====== ====== ====== ======
Weighted Average Number of
Shares Outstanding 4,949,791 4,920,669 4,955,494 4,901,140
NET INCOME (LOSS) PER
COMMON SHARE $ (.17) $ .07 $ (.10) $ .22
====== ====== ====== ======
</TABLE>
See accompanying Notes to Consolidated Financial Statements
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
ACME ELECTRIC CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
26 Weeks Ended 26 Weeks Ended
December 29, 1995 December 30, 1994
(000's) (000's)
<S> <C> <C>
Cash flows from operating activities:
Net income (Loss) $ (501) $ 1,092
Adjustments to reconcile net income
to net cash provided from
operating activities:
Depreciation and amortization 1,100 977
Loss on sale/retirement of
fixed assets -- 7
Change in assets and liabilities:
Accounts receivable, net 1,120 (245)
Inventories, net (382) (3,503)
Other assets (17) (286)
Prepaid and deferred income taxes 38 490
Accounts payable (2,764) 454
Reserves for restructuring, net -- (899)
Accrued compensation and other 48 176
Other long-term liabilities -- (706)
----- -----
Net cash used in operating activities (1,358) (2,443)
Cash flows from investing activities:
Additions to property, plant and equipment (821) (2,726)
Investment in unconsolidated subsidiary (111) --
----- -----
Net cash used in investing activities (932) (2,726)
----- -----
Cash flows from financing activities:
Increase of borrowings, net 1,880 4,861
Proceeds from employee stock purchase, stock
option and dividend reinvestment plans 51 460
Purchase of treasury stock (5) (308)
----- -----
Net cash provided by financing activities 1,926 5,013
----- -----
Net decrease in cash (364) (156)
Cash at beginning of period 386 160
----- -----
Cash at end of period $ 22 $ 4
====== ======
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
<PAGE>
<PAGE>
ACME ELECTRIC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. The Consolidated Balance Sheet of Acme Electric Corporation ("Registrant")
at December 29, 1995, the Consolidated Statement of Operations for the
thirteen- and twenty-six-week periods ended December 29, 1995, and December 30,
1994, and the Consolidated Statement of Cash Flows for the twenty-six weeks
ended December 29, 1995, and December 30, 1994, include all adjustments for a
fair presentation of the results for such periods.
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
1995 Annual Report filed on Form 10-K.
2. Inventories included in the Consolidated Balance Sheet are as follows:
<TABLE>
December 29, 1995 June 30, 1995
(000's) (000's)
<S> <C> <C>
Raw Material $ 7,451 $ 6,990
Work-In-Process 4,362 4,819
Finished Goods 5,921 5,543
------ ------
$17,734 $17,352
====== ======
</TABLE>
Inventories are reported net of reserves for obsolescence of $505,000 and
$566,000 at December 29 and June 30, respectively.
3. Accounts receivable included in the Consolidated Balance Sheet are as
follows:
<TABLE>
December 29, 1995 June 30, 1995
(000's) (000's)
<S> <C> <C>
Billed $15,607 $16,439
Unbilled 1,283 1,265
------ ------
Subtotal 16,890 17,704
Less allowance for
doubtful accounts (757) (451)
------ ------
$16,133 $17,253
====== ======
</TABLE>
Unbilled receivables are comprised of revenue amounts in long-term
contracts, which have been earned, but not yet billed. Management anticipates
that all unbilled receivables will be invoiced and collected within a twelve-
month period.
4. The Company had recorded in fiscal 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
December 29, 1995, $667,000 of reserve associated with impaired inventory
($268,000) and the idle facility ($399,000) remained on the balance sheet.<PAGE>
<PAGE>
ACME ELECTRIC CORPORATION
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
December 29, 1995
and
June 30, 1995
Increase (Decrease)
(000's)
Current Assets $ (914)
Property, Plant & Equipment Net (279)
Intangibles and Other Assets (131)
------
$(1,324)
======
Current Liabilities $(2,734)
Long-Term Debt and Other Liabilities 1,865
Shareholders' Equity $ (455)
------
$(1,324)
======
Current assets at December 29, 1995, reflect a net decrease of
approximately $914,000, or 2.3%, from the June 30, 1995, level, primarily due
to a decrease in accounts receivable of approximately $1,120,000. The decrease
in accounts receivable reflects the decline in November and December shipments,
resulting from production interruptions caused by the introduction of advanced
manufacturing technology at Acme's Power Distribution Products Division,
combined with an orders slow down for UPS product incurred during AT&T's
internal transitioning of its major business segments. Inventories increased
slightly ($382,000) due to the aforementioned reasons. The remaining net
decline in current assets reflect the receipt of tax refunds relative to fiscal
1995.
The net decrease in property, plant and equipment of $279,000, or 1.9%, is
the result of depreciation expense year-to-date of $1,100,000 offset by current
expenditures of approximately $821,000.
Intangibles and other assets decreased $131,000, or 6.3%, primarily due to
current year expense recognition of miscellaneous deferred costs incurred in
prior periods.<PAGE>
<PAGE>
Management's Discussion and Analysis of
Financial Condition and Results of Operations (Cont'd)
Current liabilities decreased $2,734,000, or 18.9%, as a result of a
decrease in the balance sheet accounts payable, which are subject to timing
fluctuations due to reporting period-end cut-offs and decrease in days payable
outstanding.
Long-term debt and other liabilities increased approximately $1,878,000,
or approximately 7.7%, from June 30, 1995. This increase reflects the funding
required to keep trade payables current, along with financing equipment
acquisitions of approximately $800,000. During the first quarter of the fiscal
year, the Company received $1,500,000 of governmental loan proceeds associated
with the recently completed Cuba facility. The Company further anticipates,
within the current fiscal year, the receipt of an additional $700,000 of low-
interest governmental loans and grants related to this same completed facility.
The decrease in shareholders' equity of $455,000 is primarily due to the
year-to-date net loss of $501,000, in part offset with the net proceeds from
stock-selling programs received since June 30, 1995.
The Company has financed its working capital requirements, in part,
through operations, with the balance coming from increased borrowings. The
Company expects that operating activities for the remainder of fiscal 1996 will
produce cash to support working capital requirements and remaining capital
expenditures, exclusive of the new business system, through the end of the
current fiscal year. The Company anticipates expending approximately
$3,500,000 on a new business information system. A third-party lease
arrangement is in place to fund the majority of this project. Approximately
$2,000,000 has already been expended through the third party lessor, and the
additional $1,500,000 will be spent over the next twelve months. The Company,
further, has in place a credit agreement which provides for a secured term loan
with a current principal balance of $5,399,000 and a secured revolving credit
line against which the Company has combined outstanding borrowings and letters
of credit nearing the $21,000,000 limit thereof. The Company believes that
this existing credit arrangement should provide sufficient liquidity for the
near term. The credit agreement, as extended, provides for a maturity date on
the line of credit of December 1, 1996, with provision for a one-year
extension, for which the Company has applied and expects to receive prior to
the end of the current fiscal year. The term loan matures January 2, 2000.
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 will potentially be subject to liability for the cost of site
investigation and remediation. At this point in time, not enough information
is available from which any reasonable estimate of 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.
<PAGE>
<PAGE>
RESULTS OF OPERATIONS:
Thirteen- and twenty-six-week periods ended December 29, 1995,
compared with the comparable thirteen- and twenty-six-week periods
ended December 30, 1994
Consolidated sales for the thirteen- and twenty-six-week periods ended
December 29, 1995, were $23,425,000 and $49,356,000, respectively, compared
with $21,320,000 and $42,254,000 for the comparable periods of a year earlier,
or an increase over the prior year's same quarter of 9.9% and 16.8% in the
year-to-date comparison. The net sales increase in the quarter-to-quarter
comparison reflects sale price increases of approximately $500,000, combined
with increased uninterruptible power supplies (UPS) product sales over those of
the prior year, though less than the first quarter of fiscal '96. The
Company's continued improvement in meeting production and shipment schedules in
support of the customer requirements at the Aerospace Division further have
contributed to improved quarterly sales over the prior year. These positive
sales trends resulted in a net sales increase, quarter-to-quarter, in spite of
the lost production and related shipments (estimated impact on sales to be in
excess of $1 million for quarter) experienced in the Power Distribution
Products Division as a result of the short-term disruption associated with the
introduction of new advanced manufacturing techniques. In the year-to-date
comparison, higher sales of UPS product, transformer sales to Siemens, along
with improved Aerospace operations allowing for reduction of backlog, all
contributed to improved year-to-date fiscal 1996 sales over the same period for
the prior year.
Cost of sales as a percentage of sales for the thirteen- and twenty-six-
week periods ended December 29, 1995, were 81.5% and 78.7%, respectively,
compared to 72.6% and 70.7% for the comparable periods of the prior year. This
increase, both in the quarter-to-quarter and year-to-date comparisons with the
same periods of a year ago, reflects the impact of increased material prices
not yet fully recovered through sale price increases, a higher mix of products
with lower associated margins sold during the current year, and manufacturing
cost inefficiencies and engineering contract cost overruns experienced at the
Aerospace Division as efforts were focused in bringing current the delinquent
backlog. In addition, the Company had sized it's labor force, in the
transformer manufacturing operation, to support anticipated sales levels that
have not been achieved, while at the same time introducing new advanced
manufacturing techniques with associated disruption costs. The Company has
recently taken the appropriate steps to reduce its labor force in support of
the current realized business levels. Further, the Company has initiated sale
price increases to recover the margin erosion caused by raw material cost
increases, but, while favorable results have already been recorded in the
quarter, it is anticipated that full recovery will take eighteen more months.
Research and engineering expenses as a percent of net sales for the
thirteen-and twenty-six-week periods ended December 29, 1995, were 4.9% and
4.7%, respectively, a decrease from the 6.2% and 6.0% experienced for the
similar periods of a year ago. This decline in percent is primarily due to the
increased sales level achieved in the current year. Actual costs decreased
$171,000 and $256,000 for the quarter and year-to-date comparisons,
respectively, due to lower agency, consulting and development fees.
Selling and administrative costs as a percent of net sales were 16.5% and
15.7%, respectively, for the thirteen- and twenty-six-week periods ended
December 29, 1995, compared to 16.5% and 17.1% for the similar periods of a
year earlier. The year-to-date "percentage of sale" decrease reflects the
increased sales in the current year over the same period of the prior year,<PAGE>
<PAGE>
RESULTS OF OPERATIONS (Cont'd)
while being able to minimize increased costs associated with new sales in the
areas of commissions and marketing expenses.
Interest expense as a percent of net sales for the thirteen- and twenty-
six-week periods ended December 29, 1995, increased to approximately 2.6% and
2.4%, respectively, from 2.1% and 1.9%, respectively, for the comparable
periods of the prior year. This increase is reflective of both a higher
outstanding debt threshold (in excess of an additional $2 million borrowed) and
increased interest rates, averaging approximately one-half of a percentage
point higher.
Income taxes as a percent of income before taxes were 35.5% and 31.3%,
respectively, for the thirteen- and twenty-six-week periods ended December 29,
1995, compared with 38.5% for the comparable periods of a year earlier. The
variation in the effective tax rates is influenced by a number of factors,
including the difference in tax benefits associated with losses (assuming
future benefits to be realized) and tax provisions associated with profits. A
conservative approach (as favored by SFAS 109) in recording tax benefits on
current losses that are dependent on future profits leads to a lower effective
tax rate, coupled with certain statutory minimum taxes that further reduce the
full tax benefit realized. In addition, no tax benefit has been recorded
against the start-up losses associated with Acme's joint venture in Ireland
based upon the Company's intent to reinvest all future profits into the foreign
operation, thus further reducing the effective tax benefit rate used in the
current year's financial statements.
Backlog at December 29, 1995, was $17,419,649, compared with $18,550,580
at the end of the comparable period of the prior year. This decrease is
primarily due to the improved production activity at the Aerospace Division,
thereby reducing the backlog associated with delinquent customer orders.<PAGE>
<PAGE>
PART II
OTHER INFORMATION
ITEM 5. OTHER INFORMATION
a. Exhibits - News Release dated February 6, 1996, announcing second-
quarter results for fiscal year 1996.
- Interim Report dated February 9, 1996, for the second
quarter ended December 29, 1995.
b. There were no reports filed on Form 8-K during the twenty-six-week
period ended December 29, 1995.
<PAGE>
<PAGE>
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.
ACME ELECTRIC CORPORATION
(Registrant)
Date: February 12, 1996 _______________________________
Robert J. McKenna
Chairman, President and
Chief Executive Officer
Date: February 12, 1996 ________________________________
Daniel K. Corwin
Senior Vice President and
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-END> DEC-29-1995
<CASH> 22
<SECURITIES> 0
<RECEIVABLES> 16,890
<ALLOWANCES> 757
<INVENTORY> 17,734
<CURRENT-ASSETS> 32,523
<PP&E> 32,941
<DEPRECIATION> 18,563
<TOTAL-ASSETS> 54,854
<CURRENT-LIABILITIES> 11,713
<BONDS> 26,297
0
0
<COMMON> 23,861
<OTHER-SE> (8,467)
<TOTAL-LIABILITY-AND-EQUITY> 54,854
<SALES> 23,425
<TOTAL-REVENUES> 23,425
<CGS> 19,096
<TOTAL-COSTS> 24,072
<OTHER-EXPENSES> 50
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 605
<INCOME-PRETAX> (1,302)
<INCOME-TAX> (468)
<INCOME-CONTINUING> (834)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (834)
<EPS-PRIMARY> (.17)
<EPS-DILUTED> (.17)
</TABLE>
ACME ELECTRIC CORPORATION
INTERIM REPORT 2
DECEMBER 29, 1995
To Our Shareholders:
The second quarter resulted in a loss of $834,000 on sales of $23,425,000,
compared to sales of $21,320,000 and net income of $339,000 for the comparable
period of last year. Although the incoming order rate remains relatively
strong, we have seen some softening in selected markets.
The Electronics Division continues to grow. This past quarter, Stratus
Computer and Silicon Graphics were added to our expanding list of blue chip
customers. An agreement was also reached with Alcatel Data Network, which
provides the opportunity to supply the custom power supplies for Alcatel's new
high-speed wide bandwidth switches used for mass data, voice and video trans-
mission. This contract is expected to yield $3-5 million of new business per
year. This business remains on plan and should enjoy its best profitability in
five years.
Our Power Distribution Products Division, which has been hit with signifi-
cant material cost increases over the past twelve months, began to recover some
lost margin through price increases that went into effect last quarter. A
segment of this business served as our beta site last quarter for the introduc-
tion of advanced manufacturing techniques. In the short-term, this change is
highly disruptive to the production process and greatly impacted profitablity
last quarter, but, once fully implemented, will enable us to be far more
efficient and greatly improve our ability to serve our customers.
The Aerospace Division completed the consolidation of military/aerospace
manufacturing operations, which are now functioning in a stable environment.
However, the need to divert substantial engineering resources to support this
consolidation has caused us to become delinquent on many of our mili-
tary/aerospace engineering development contracts, resulting in large cost
overruns for the quarter. Technical resources are being added to this segment
of our business to address the situation. Additionally, a plan has been
developed to bring this business to a break-even operating position over the
next three quarters.
Although the financial results for the quarter are disappointing, I remain
convinced that, as an organization, we are doing the right things for the long-
term interest of our shareholders.
Robert J. McKenna
Chairman and CEO
February 9, 1996
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
ACME ELECTRIC CORPORATION
East Aurora, New York
The following tables set forth certain unaudited financial information for the
twenty-six-week periods
ended December 30, 1994, and December 29, 1995 (in thousands, except for per
share data):
CONSOLIDATED
BALANCE SHEET
Dec. 30, 1994 Dec. 29, 1995 June
30, 1995
<S> <C> <C> <C>
Current Assets.................. $34,469 $38,523
$39,437
Fixed Assets and Other - Net.... 18,180 16,331
16,741
Total......................... $52,649 $54,854
$56,178
Current Liabilities............. $ 9,780 $11,714
$14,447
Long-Term Debt.................. 27,059 27,746
25,882
Shareholders' Equity............ 15,810 15,394
15,849
Total......................... $52,649 $54,854
$56,178
</TABLE>
<TABLE>
<CAPTION>
CONSOLIDATED INCOME
STATEMENT
13 Weeks 13 Weeks 26 Weeks 26 Weeks
Fiscal Year
Ended Ended Ended Ended
Ended
Dec. 30, 1994 Dec. 29, 1995 Dec. 30, 1994 Dec. 29,
1995 June 30, 1995
<S> <C> <C> <C> <C>
<C>
Net Sales.................. $21,320 $23,425 $42,254 $49,356
$91,127
Net Income (Loss).......... 339 (834) 1,092
(501) 992
Earnings (Loss) per share.. $.07 $(.17) $.22
$(.10) $.20
Weighted Number of Shares
Outstanding Used to Compute
Income (Loss) per Common
Share 4,920,669 4,949,791 4,901,140 4,955,494
4,924,887
</TABLE>
ACME ELECTRIC CORPORATION
NEWS RELEASE
SECOND QUARTER RESULTS FOR FISCAL 1996
FOR IMMEDIATE RELEASE
ACME ELECTRIC ANNOUNCES SECOND-QUARTER RESULTS
EAST AURORA, N.Y., February 6, 1996 -- Acme Electric Corporation (NYSE:ACE)
announced today that, for the second quarter of its 1996 fiscal year ended
December 29, 1995, net sales were $23,425,000, compared to $21,320,000 for the
comparable period of the previous year, with a net loss of $834,000, or $.17
per share, compared to net income of $339,000, or $.07 per share the previous
year. Net sales for the twenty-six-week period ended December 29, 1995, were
$49,356,000, compared with $42,254,000 for the comparable period of the
previous year. The net loss for the twenty-six-week period ended December 29,
1995, was $501,000, or $.10 per share, compared with net income of $1,092,000,
or $.22 per share, for the comparable period of the previous year.
Chairman and Chief Executive Officer, Robert J. McKenna, said that, "Our
industrial OEM business continued to improve, winning a new program for Alcatel
Data Network and adding Stratus Computer and Silicon Graphics as new customers.
However, our electrical distribution products business was disrupted with the
introduction of new advanced manufacturing techniques which, although
beneficial in the long-term, greatly impacted profitability during the last
quarter. The manufacturing operations of the aerospace business were
successfully consolidated, but large cost overruns were incurred in the
process, and it continued to be a financial drain on the Corporation. A plan
has been developed which we expect will bring this business to a break-even
operating position over the next three quarters."
McKenna added that, "Although the financial results for the quarter are
disappointing, I am convinced that, as an organization, we are doing the right
things for the long-term best interests of our shareholders."
Founded in 1917, Acme Electric Corporation is a leader in the design and
manufacture of power conversion products for electronic and electrical 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. Company news is available by
FAX: dial 1-800-758-5804, and input extension 006675; or for INTERNET access go
to: http://www.prnewswire.com/cnoc/exec/menu?006675
# # # #
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
ACME ELECTRIC CORPORATION
Comparative Analysis
(in thousands, except for per share data)
13 Weeks 13 Weeks 26 Weeks 26 Weeks
Ended Ended Ended Ended
Dec. 30, 1994 Dec. 29, 1995 Dec. 30, 1994 Dec. 29, 1995
<S> <C> <C> <C> <C>
Net Sales $21,320 $23,425 $42,254 $49,356
Net Income (Loss) 339 (834) 1,092 (501)
Earnings (Loss) per share $.07 $(.17) $.22 $(.10)
Weighted Number of Shares
Outstanding Used to Compute
Income (Loss) Per Common Share 4,920,669 4,949,791 4,901,140 4,955,494
</TABLE>
