UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended January 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 0-12619
Collins Industries, Inc.
(Exact name of registrant as specified in its charter)
Missouri 43-0985160
(State or other jurisdiction (I.R.S. Employer
of incorporation) Identification Number)
421 East 30th Avenue Hutchinson, Kansas 67502-2489
(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code 316-663-5551
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 [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Common Stock, $.10 par value 7,237,348
Class Outstanding at March 6, 1995
<PAGE>
<TABLE>
PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements
Collins Industries, Inc. and Subsidiaries
CONSOLIDATED CONDENSED BALANCE SHEETS
<CAPTION>
January 31, October, 31,
1995 1994
(Unaudited)
<S> <C> <C>
ASSETS
Current Assets:
Cash $ 4,021,209 $ 3,814,398
Receivables, trade & other, net 5,764,119 8,076,319
Inventories, lower of cost (FIFO)
or market (Note 2) 25,273,041 25,081,169
Prepaid expenses and other current
assets 855,670 978,270
Total current assets 35,914,039 37,950,156
Property and equipment, at cost: 35,289,741 35,220,579
Less: accumulated depreciation 20,829,041 20,304,288
Net property and equipment 14,460,700 14,916,291
Intangibles - dealer network 45,859 113,894
Other assets 1,358,399 1,813,358
Total assets $51,778,997 $54,793,699
LIABILITIES & SHAREHOLDERS' INVESTMENT
Current liabilities:
Current maturities of long-term debt
& leases $ 2,009,349 $2,006,694
Note payable - 625,000
Chassis floorplan notes payables 2,854,263 3,676,111
Accounts payable 12,454,465 13,878,109
Accrued expenses 3,749,282 3,582,729
Total current liabilities 21,067,359 23,768,643
Long-term capitalized leases, less 2,082,006 2,143,403
current maturities
Long-term debt, less current maturities 19,576,204 18,401,311
Reserve for litigation settlement - 1,201,936
Deferred income taxes 284,000 284,000
Shareholders' investment
Common stock, $.10 par value 723,735 713,735
Paid-in capital 19,451,570 19,457,056
Retained earnings (deficit) (11,405,877) (11,176,385)
Total shareholders' investment 8,769,428 8,994,406
Total liabilities & shareholders'
investment $51,778,997 $54,793,699
<FN>
(See accompanying notes)
</TABLE>
<PAGE>
<TABLE>
Collins Industries, Inc. and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Three Months Ended
January 31,
1995 1994
<S> <C> <C>
Sales $33,562,354 $26,618,124
Cost of sales 29,570,394 23,939,002
Gross profit 3,991,960 2,679,122
Selling, general and administrative
expenses 3,462,854 2,894,933
Income (loss) from operations 529,106 (215,811)
Other income (expense):
Interest, net (828,086) (789,650)
Other, net 69,488 (66,707)
(758,598) (856,357)
Loss before provision (credit)
for income taxes (229,492) (1,072,168)
Provision (credit) for income taxes - -
Net loss $ (229,492) $(1,072,168)
Loss per share $(0.03) $(0.15)
Weighted average shares outstanding 7,159,087 7,084,680
<FN>
(See accompanying notes)
</TABLE>
<PAGE>
<TABLE>
Collins Industries, Inc. and Subsidiairies
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW
(Unaudited)
Three Months Ended
January 31,
1995 1994
<C> <C>
Cash flow from operations:
Cash received from customers $ 35,874,554 $ 29,984,629
Cash paid to suppliers and employees (34,313,655) (31,416,091)
Interest paid (284,422) (1,196,666)
Cash provided by (used in) operations 1,276,477 (2,628,128)
Cash flow from investing activities:
Capital expenditures (69,162) (150,433)
Proceeds from sale of vacant land 643,667 0
Other, net (4,749) 32,033
Cash provided by (used in) investing
activities 569,756 (118,400)
Cash flow from financing activities:
Net increase (reduction) in short-term
borrowings (821,848) 723,650
Principal payments of notes payable (625,000) 0
Principal payments of long-term debt
and capitalized leases (85,785) (580,334)
Payment of financing costs (106,789) 0
Cash flow provided by (used in) financing
activities (1,639,422) 143,316
Net increase (decrease) in cash 206,811 (2,603,212)
Cash at beginning of period 3,814,398 4,356,702
Cash at end of period $ 4,021,209 $ 1,753,490
Reconciliation of net loss to net cash
provided by (used in) operations:
Net loss $ (229,492) $ (1,072,168)
Depreciation and amortization 619,799 670,791
Decrease in receivables 2,312,200 3,366,505
Increase in inventories (191,872) (6,814,057)
Decrease in prepaid expenses and other
current assets 122,600 89,601
Increase (decrease) in accounts payable
and accrued expenses (1,257,091) 1,131,200
Gain on sale of vacant land (99,667) 0
Cash provided by (used in) operations $ 1,276,477 $ (2,628,128)
<FN>
(See accompanying notes)
</TABLE>
<PAGE>
COLLINS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements
(Unaudited)
(1) General
In the opinion of management, the accompanying unaudited consolidated
condensed financial statements contain all adjustments (consisting of only
normal recurring items) necessary to summarize fairly the Company's financial
position and results of operations for the three months ended January 31, 1995
and 1994, and the changes in its financial position for the three months
ended January 31, 1995 and 1994.
(2) Inventories
Inventories which include material, labor, and manufacturing overhead, are
stated at the lower of cost (FIFO) or market.
Major classes of inventories as of January 31, 1995 and October 31, 1994,
consisted of the following:
January 31, October 31,
1995 1994
Chassis $ 6,069,165 $ 7,272,003
Raw materials & components 9,603,039 9,291,001
Work in process 5,813,963 5,425,766
Finished goods 3,786,874 3,092,399
$25,273,041 $ 25,081,169
(3) Loss per Share
Loss per share has been computed using the weighted average outstanding
common and common equivalent shares (7,159,087 and 7,084,680 shares for the
three months ended January 31, 1995 and 1994, respectively).
(4) Contingencies and Litigation
At January 31, 1995 the Company had contingencies and litigation pending
which arose in the ordinary course of business. Litigation is subject to
many uncertainties and the outcome of the individual matters is not
presently determinable. It is management's opinion that this litigation
would not result in liabilities that would have a material adverse effect
on the Company's consolidated financial position.
<PAGE>
Item 2 - Management's Discussion and Analysis of Financial Condition
and Results of Operations
RESULTS OF OPERATIONS:
Net Sales
Sales for the quarter ended January 31, 1995 were $33.6 million or 26.1
percent higher than the $26.6 million in net sales for the quarter ended
January 31, 1994. This increase was principally due to improved sales
of ambulance products.
The Company's consolidated sales backlog at January 31, 1995 was $47.8
million compared to $33.5 million at January 31, 1994.
Cost of Sales
The Company's cost of sales for the quarter ended January 31, 1995
were $29.6 million or 88.1 percent of sales compared to $23.9 million or
89.9 percent of sales for the quarter ended January 31, 1994. This
reduction as a percentage of sales was principally due to realization of
sales price increases and improved manufacturing efficiencies in the
Company's ambulance division. The reduction in the Company's overall
cost of sales percentage was partially offset by the continued losses in
commercial bus operations.
Selling, General & Administrative Expenses
Selling, general and administrative expenses were $3.5 million or 10.3 percent
of sales for the quarter ended January 31, 1995 compared to $2.9 million or
10.9 percent of sales for the quarter ended January 31, 1994. The overall
increase of $.6 million was principally due to higher selling and marketing
costs associated with Ambulance Division's sales increase.
<PAGE>
Other Income (Expense)
Other income for the quarter ended January 31, 1995 included the gain
from the sale of vacant land of $99,667. No similar transactions occurred
in the quarter ended January 31, 1994.
Net Loss
The Company's net loss was $.2 million ($.03 per share) for the quarter
ended January 31, 1995 compared to $1.1 million ($.15 per share) for the
quarter ended January 31, 1994. Substantially all of the reduction in the
Company's net loss is attributable to the Company's improved ambulance
operations as previously described.
LIQUIDITY AND CAPITAL RESOURCES:
The Company used existing credit lines, internally generated funds and
supplier financing to finance its operations and capital expenditures
for the quarter ended January 31, 1995.
Cash provided by operations was $1.3 for the quarter ended January 31,
1995 compared to funds used in operations of $2.6 million for quarter ended
January 31, 1994. This increased cash provided by operations resulted from
improved operations in the Company's ambulance product lines and a
corresponding reduction of the Company's overall net loss and improved
inventory turns.
Cash provided by investing activities was $.6 million for the quarter ended
January 31, 1995 compared to cash used in investing activities of $.1 million
for the quarter ended January 31, 1994. Substantially all of this change
was due to the proceeds realized from the sale of vacant land of $.6 million
in the quarter ended January 31, 1995.
Cash flow used in financing activities was $1.6 million for the quarter ended
January 31, 1995 compared to cash flow provided by financing activities of
$.1 million in the quarter ended January 31, 1994. Substantially all of this
change resulted from the repayment of bank debt ($.6 million) and reductions
in short-term borrowings ($.8 million) in the quarter ended January 31, 1995.
The Company believes that its cash flows from operations will be sufficient
to satisfy its future working capital and capital expenditure requirements.
At January 31, 1995 there were no significant or unusual contractual
commitments or capital expenditure commitments.
The Company is continuing its negotiations with a major U.S. bank to
refinance a majority of its interest-bearing debt. The refinancing, if
consummated, would provide the Company with a credit line of $34.0 million
and would initially be utilized to repay the Senior Notes and all chassis
floor plan financing. Such refinancing would require the Company to make
an extraordinary charge against 1995 operations ($.5 million) for the
costs associated with the early extinguishment of debt.
<PAGE>
PART II - OTHER INFORMATION
Item 1 - Legal Proceedings
Settlement of SEC Investigation
On November 3, 1994, the Securities and Exchange Commission instituted public
administrative proceedings against the Company, Donald Lynn Collins and other
representatives of the Company, pursuant to Section 21C of the Exchange Act
and Section 8A of the Securities Act concerning alleged violations of the
anti-fraud, reporting, record-keeping and internal controls provisions of the
Exchange Act and the Securities Act. Simultaneously with the institution of
the proceedings, the Commission accepted an offer of settlement from each
respondent in which, without admitting or denying the findings of the
Commission, each respondent agreed to the issuance of an order directing the
respondent to cease and desist from committing and/or causing violations of
certain provisions of the Exchange Act and, as to the Company and Donald Lynn
Collins, the Securities Act.
Item 2 - Changes in Securities
Not applicable
Item 3 - Defaults on Senior Securities
Not applicable
Item 4 - Submission of Matters to a Vote of Security-Holders
Not applicable
Item 5 - Other Information
Not applicable
Item 6 - Exhibits and Reports on Form 8-K
(a) Exhibits:
27.0 - EDGAR Financial Data Schedule
(b) Reports on Form 8-K - No reports on Form 8-K were filed
during the quarter ended January 31, 1995.
<PAGE>
SIGNATURE
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.
COLLINS INDUSTRIES, INC.
(REGISTRANT)
Larry W. Sayre
DATE March 14, 1994 ____________________________
LARRY W. SAYRE
VICE PRESIDENT - FINANCE AND
CHIEF FINANCIAL OFFICER
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> OCT-31-1994
<PERIOD-END> JAN-31-1995
<CASH> 4,021,209
<SECURITIES> 0
<RECEIVABLES> 5,764,119
<ALLOWANCES> 0
<INVENTORY> 25,273,041
<CURRENT-ASSETS> 35,914,039
<PP&E> 35,289,741
<DEPRECIATION> 20,829,041
<TOTAL-ASSETS> 51,778,997
<CURRENT-LIABILITIES> 21,067,359
<BONDS> 0
<COMMON> 723,735
0
0
<OTHER-SE> 8,045,693
<TOTAL-LIABILITY-AND-EQUITY> 51,778,997
<SALES> 33,562,354
<TOTAL-REVENUES> 33,562,354
<CGS> 29,570,394
<TOTAL-COSTS> 33,033,248
<OTHER-EXPENSES> (69,488)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 828,086
<INCOME-PRETAX> (229,492)
<INCOME-TAX> 0
<INCOME-CONTINUING> (229,492)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (229,492)
<EPS-PRIMARY> (.03)
<EPS-DILUTED> 0
</TABLE>
