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: April 30, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _________ to ___________
Commission file number 0-12619
Collins Industries, Inc.
(Exact name of registrant as specified in its charter)
Missouri
(State or other jurisdiction of incorporation)
43-0985160
(I.R.S. Employer 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 7,315,996
Class Outstanding at June 5, 1996
COLLINS INDUSTRIES, INC. AND SUBSIDIARIES
FORM 10-Q
APRIL 30, 1996
INDEX
PART I. FINANCIAL INFORMATION PAGE NO
Item 1. Financial Statements:
Consolidated Condensed Balance Sheets
April 30, 1996 and October 31, l995 3
Consolidated Condensed Statements of Income -
Three and Six Months Ended April 30, 1996
and 1995 4
Consolidated Condensed Statements of Cash Flow -
Six Months Ended April 30, 1996 and 1995 5
Notes to Consolidated Condensed Financial
Statements 6
Item 2.
Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
PART II. OTHER INFORMATION
Item 1-6 9
SIGNATURES 11
PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements
Collins Industries, Inc. and Subsidiaries
CONSOLIDATED CONDENSED BALANCE SHEETS
April 30, October 31,
1996 1995
(Unaudited)
ASSETS
Current assets:
Cash $ 696,229 $ 842,953
Receivables, trade and other, net 8,369,876 7,375,492
Inventories, lower of cost or
market (Note 2) 23,138,002 23,466,727
Prepaid expenses and other current assets 382,792 400,753
Total current assets 32,586,899 32,085,925
Property and equipment, at cost: 35,400,477 35,152,977
Less: accumulated depreciation 22,404,045 21,730,893
Net property and equipment 12,996,432 13,422,084
Other assets 1,155,484 1,373,042
Total assets $46,738,815 $46,881,051
LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current liabilities:
Current maturities of long-term
debt and capitalized leases $ 1,164,285 $ 1,158,070
Accounts payable 12,305,766 14,154,891
Accrued expenses 2,831,596 3,321,210
Total current liabilities 16,301,647 18,634,171
Long-term capitalized leases, less
current maturities 1,474,305 1,745,797
Long-term debt, less current maturities 17,974,549 17,659,933
Deferred income taxes 36,000 36,000
Shareholders' investment:
Common stock, $.10 par value 731,600 728,689
Paid-in capital 19,667,534 19,593,605
Retained earnings (deficit) (9,446,820 (11,517,144)
Total shareholders' investment 10,952,314 8,805,150
Total liabilities and
shareholders' investment $46,738,815 $46,881,051
(See accompanying notes)
Collins Industries, Inc. and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Six Months Ended
April 30, April 30,
1996 1995 1996 1995
Sales $37,637,590 $34,883,923 $70,046,382 $68,446,277
Cost of sales 32,357,770 30,150,007 59,757,537 59,720,401
Gross profit 5,279,820 4,733,916 10,288,845 8,725,876
Selling, general and
administrative expenses 3,433,921 3,406,353 7,123,129 6,869,207
Income from operations 1,845,899 1,327,563 3,165,716 1,856,669
Other income (expense):
Interest expense (605,221) (960,061) (1,239,805) (1,788,147)
Other, net 95,249 33,050 159,413 102,538
(509,972) (927,011) (1,080,392) (1,685,609)
Income before provision
for income taxes 1,335,927 400,552 2,085,324 171,060
Provision for income taxes 0 0 15,000 0
Net income $ 1,335,927 $ 400,552 $ 2,070,324 $ 171,060
Earnings per share (Note 3)
Net income per common and
common equivalent share $ .18 $ .06 $ .28 $ .02
Net income per share -
assuming full dilution $ .17 $ .06 $ .28 $ .02
(See accompanying notes)
Collins Industries, Inc. and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW
(Unaudited)
Six Months Ended
April 30,
1996 1995
Cash flow from operations:
Cash received from customers $69,051,998 $69,638,256
Cash paid to suppliers and employees (67,575,664) (67,455,912)
Interest paid (1,303,443) (1,758,018)
Cash provided by operations 172,891 424,326
Cash flow from investing activities:
Capital expenditures (376,004) (241,173)
Proceeds from sale of vacant land 0 643,667
Other, net 7,050 (22,658)
Cash provided by (used in)
investing activities (368,954) 379,836
Cash flow from financing activities:
Net increase (reduction) in
short-term borrownings 685,853 (749,842)
Principal payments of long-term
debt and capitalized leases (636,514) (950,654)
Principal payments of note payable to bank 0 (625,000)
Payment of financing costs 0 (154,389)
Cash flow provided by (used in)
financing activities 49,339 (2,479,885)
Net decrease in cash (146,724) (1,675,723)
Cash at beginning of period 842,953 3,814,398
Cash at end of period $ 696,229 $ 2,138,675
Reconciliation of net income to net cash provided by operations:
Net income $2,070,324 $ 171,060
Non-cash charges to operations 1,039,247 1,305,602
Common stock issued for benefit of employees 49,756 0
Decrease (increase) in receivables (994,384) 1,191,979
Decrease (increase) in inventories 328,726 (1,462,426)
Decrease in prepaid expenses and
other current assets 17,961 264,553
Decrease in accounts payable and
accrued expenses (2,338,739) (946,775)
Gain on sale of vacant land 0 (99,667)
Cash provided by operations $ 172,891 $ 424,326
(See accompanying notes)
COLLINS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements
(Unaudited)
(1) General
The preparation of financial statements in conformity with
generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could
differ form these estimates.
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 and six
months ended April 30, 1996 and 1995, and the cash flows for
the three and six months ended April 30, 1996 and 1995.
The Company suggests that the unaudited Consolidated
Condensed Financial Statements for the three and six months
ended April 30, 1996 be read in conjunction with the
Company's Annual Report for the year ended October 31, 1995.
(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 April 30, 1996 and October 31,
1995 consisted of the following:
April 30, October 31,
1996 1995
Chassis $ 6,104,274 $ 6,545,808
Raw materials & components 8,657,793 8,294,483
Work in process 3,033,881 3,400,583
Finished goods 5,342,054 5,225,853
$23,138,002 $23,466,727
(3) Earnings per Share
The computation of earnings per share is based on the
weighted average number of outstanding common shares during
the period plus common stock equivalents consisting of
certain shares subject to stock options.
The shares used in the computations of earnings per share for
the periods ended April 30 were as follows:
Three Months Ended Six Months Ended
April 30, April 30,
1996 1995 1996 1995
Primary 7,521,917 7,252,800 7,404,711 7,205,167
Fully diluted 7,727,005 7,252,800 7,507,255 7,205,167
(4) Contingencies and Litigation
At April 30, 1996 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 or results of operations.
(5) Income Taxes
The provision for income taxes as calculated at statutory
rates is offset by the tax effect of net operating loss
carryforwards.
Item 2 - Management's Discussion and Analysis of Financial
Condition and Results of Operations
RESULTS OF OPERATIONS
Sales
Sales for the six months ended April 30, 1996 were $70.0
million compared to $68.4 million for the same period in
fiscal 1995. Sales for the quarter ended April 30, 1996 were
$37.6 million compared to $34.9 million for the same period in
fiscal 1995. These increases were principally due to improved
sales of ambulance and bus products. The overall sales increases
were partially offset by declines in terminal truck sales.
Cost of Sales
Cost of sales for the six months ended April 30, 1996 were
85.3% of sales compared to 87.3% of sales for the same period
in fiscal 1995. This decrease was principally due to
improved efficiencies in operations of the bus product lines
and lower material costs attributable to the sales mix in
ambulance product lines. These decreases were partially offset
by lower margins realized from terminal truck products.
Selling, General & Administrative Expenses
Selling, general and administrative expenses were $7.1 million
or 10.2% of sales for the six months ended April 30, 1996 compared
to $6.9 million or 10.0% of sales for the six months ended April 30,
1995. The overall increase was principally due to a charge of
$.4 million to reflect the impact of an unfavorable jury verdict of
certain litgiation recorded in the quarter ended January 31, 1996.
This litigation related to a dispute regarding a commission on a
foreign sale and was not related to the Company's products or its
future operations.
Other Income (Expense)
Interest expense for the six months ended April 30, 1996 was
$1.2 million compared to $1.8 million for the same period in
fiscal 1995. Interest expense for the quarter ended April 30,
1996 was $.6 million compared to $1.0 million for the same
period in fiscal 1995. These declines resulted from
decreases in the Company's average borrowing rates and
reductions in the Company's interest-bearing debt.
Net Income
The Company's net income was $2.1 million ($.28 per share)
for the six months ended April 30, 1996 compared to $.2
million ($.02 per share) for the same period in fiscal 1995.
This improvement was principally due to the improved
operations in the Company's ambulance and bus product lines
and decreases in interest expense associated with reduced
borrowings and interest rates described above.
The Company's net income for the quarter ended April 30, 1996
was $1.3 million ($.18 per share) compared to $.4 million
($.06 per share) for the same period in fiscal 1995. The net
income change is principally due to the same reasons
discussed in the immediately preceding paragraph.
LIQUIDITY AND CAPITAL RESOURCES:
The Company used existing credit lines, internally generated
funds and supplier financing to finance its operations for
the six months ended April 30, 1996.
The Company believes that its cash flows from operations and
its credit facility with NationsBank of Georgia, N.A. will be
sufficient to satisfy its future working capital and capital
expenditure requirements.
At April 30, 1996, there were no significant or unusual
contractual commitments or capital expenditure requirements.
PART II - OTHER INFORMATION
Item 1 - Legal Proceedings
Not Applicable
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
The Company's 1996 Annual Meeting of Shareholders was held
February 23, 1996. Mr. Don L. Collins and Mr. Don S. Peters
were each elected as a director for a three year term. Mr.
Collins received 6,302,818 votes for, 570,192 against and no
abstentions. Mr. Peters received 6,320,618 votes for,
570,192 against and no abstentions. The other directors
whose term of office continued after the meeting were:
Donald Lynn Collins, Lewis W. Ediger, Arch G. Gothard, III,
and Robert E. Lind.
The Company also amended Article VI of its Articles of
Incorporation at the 1996 Annual Meeting of Shareholders.
The Amendment provided for the present Board of Directors to
consist of six (6) members and for the Board of Directors to
be able to change this number in the manner provided by the
Bylaws, which provides that the entire Board of Directors of
the Company consist of not less than three (3) nor more than
nine (9) members. This Amendment was approved by 6,207,949
affirmative votes, 617,803 votes against and 56,327
abstentions.
For the fiscal year ending October 31, 1996, the Company also
ratified the appointment of its independent public
accountants, Arthur Andersen LLP at its 1996 Annual Meeting
of Shareholders. Accordingly, Arthur Andersen LLP received
6,736,169 votes for, 127,954 votes against and 17,954
abstentions.
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 April 30, 1996.
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)
DATE June 6, 1996 s/Larry W. Sayre
LARRY W. SAYRE
VICE PRESIDENT - FINANCE AND
CHIEF FINANCIAL OFFICER
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