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, 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 7,307,387
Class Outstanding at March 8, 1996
COLLINS INDUSTRIES, INC. AND SUBSIDIARIES
FORM 10-Q
JANUARY 31, 1996
INDEX
PART I. FINANCIAL INFORMATION PAGE NO
Item 1. Financial Statements:
Consolidated Condensed Balance Sheets 3
January 31, 1996 and October 31, l995
Consolidated Condensed Statements of Operations -
Three Months Ended January 31, 1996 and 1995 4
Consolidated Condensed Statements of Cash Flow -
Three Months Ended January 31, 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 7
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 10
SIGNATURES 11
PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements
Collins Industries, Inc. and Subsidiaries
CONSOLIDATED CONDENSED BALANCE SHEETS
January 31 October 31,
1996 1995
(Unaudited)
ASSETS
Current Assets:
Cash $ 607,076 $ 842,953
Receivables, trade & other, net 6,088,433 7,375,492
Inventories, lower of cost (FIFO)
or market (Note 2) 24,583,385 23,466,727
Prepaid expenses and other current assets 542,504 400,753
Total current assets 31,821,398 32,085,925
Property and equipment, at cost: 35,186,326 35,152,977
Less: accumulated depreciation 22,016,600 21,730,893
Net property and equipment 13,169,726 13,422,084
Other assets 1,234,931 1,373,042
Total assets $ 46,226,055 $46,881,051
LIABILITIES & SHAREHOLDERS' INVESTMENT
Current liabilities:
Current maturities of long-term
debt & capitalized leases $ 1,158,135 $ 1,158,070
Accounts payable 11,748,155 14,154,891
Accrued expenses 3,775,550 3,321,210
Total current liabilities 16,681,840 18,634,171
Long-term capitalized leases, less
current maturities 1,610,153 1,745,797
Long-term debt, less current maturities 18,311,660 17,659,933
Deferred income taxes 36,000 36,000
Shareholders' investment
Common stock, $.10 par value 730,739 728,689
Paid-in capital 19,638,410 19,593,605
Retained earnings (deficit) (10,782,747) (11,517,144)
Total shareholders' investment 9,586,402 8,805,150
Total liabilities &
shareholders' investment $46,226,055 $46,881,051
(See accompanying notes)
Collins Industries, Inc. and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
January 31,
1996 1995
Sales $32,408,792 $33,562,354
Cost of sales 27,399,767 29,570,394
Gross profit 5,009,025 3,991,960
Selling, general and administrative expenses 3,689,208 3,462,854
Income from operations 1,319,817 529,106
Other income (expense):
Interest, net (634,584) (828,086)
Other, net 64,164 69,488
(570,420) (758,598)
Income (loss) before income taxes 749,397 (229,492)
Provision for income taxes 15,000 -
Net income (loss) $ 734,397 $ (229,492)
Earnings (loss) per share $ 0.10 $ (0.03)
Weighted average shares outstanding 7,287,778 7,159,087
(See accompanying notes)
Collins Industries, Inc. and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW
(Unaudited)
Three Months Ended
January 31,
1996 1995
Cash flow from operations:
Cash received from customers $33,695,851 $35,874,554
Cash paid to suppliers and employees (33,663,716) (34,313,655)
Interest paid (657,871) (284,422)
Cash provided by (used in) operations (625,736) 1,276,477
Cash flow from investing activities:
Capital expenditures (122,722) (69,162)
Proceeds from sale of vacant land - 643,667
Other, net (3,567) (4,749)
Cash provided by (used in)
financing activities (126,289) 569,756
Cash flow from financing activities:
Net increase (reduction) in
other borrowings 833,934 (821,848)
Principal payments of notes payable - (625,000)
Principal payments of long-term debt
and capitalized leases (317,786) (85,785)
Payment of financing costs - (106,789)
Cash flow provided by (used in)
financing activities 516,148 (1,639,422)
Net increase (decrease) in cash (235,877) 206,811
Cash at beginning of period 842,953 3,814,398
Cash at end of period $ 607,076 $ 4,021,209
Reconciliation of net income (loss) to
net cash provided by (used in) operations:
Net income (loss) $ 734,397 $ (229,492)
Depreciation and amortization 530,300 619,799
Common stock issued for benefit of employees 33,313 -
Decrease in receivables 1,287,059 2,312,200
Increase in inventories (1,116,658) (191,872)
Decrease (increase) in prepaid
expenses and other current assets (141,751) 122,600
Decrease in accounts payable and
accrued expenses (1,952,396) (1,257,091)
Gain on sale of vacant land - (99,667)
Cash provided by (used in) operations $ (625,736) $ 1,276,477
(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 from those 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 months ended January 31, 1996 and
1995, and the changes in its financial position for the three
months ended January 31, 1996 and 1995.
The Company suggests that the unaudited Consolidated Condensed
Financial Statements for the three months ended January 31, 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 January 31, 1996 and October 31,
1995, consisted of the following:
January 31, October 31,
1996 1995
Chassis $ 6,270,330 $ 6,545,808
Raw materials & components 9,107,221 8,294,483
Work in process 3,200,681 3,400,583
Finished goods 6,005,153 5,225,853
$24,583,385 $23,466,727
(3) Earnings (Loss) per Share
The computation of earnings (loss) per share is based on the
weighted average number of outstanding common shares during the
period plus, when their effect is dilutive, common stock
equivalents consisting of certain shares subject to stock
options.
(4) Contingencies and Litigation
At January 31, 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.
Item 2 - Managements' Discussion and Analysis of Financial
Condition and Results of Operations
RESULTS OF OPERATIONS:
Net Sales
Sales for the quarter ended January 31, 1996 were $32.4 million
or 3.7% percent lower than the $33.6 million in net sales for the
quarter ended January 31, 1995. This decline was principally due
to lower sales of commercial bus products.
The Company's consolidated sales backlog at January 31, 1996 was
$41.4 million compared to $29.2 million at October 31, 1995 and
$47.8 at January 31, 1995.
Cost of Sales
The Company's cost of sales for the quarter ended January 31,
1996 were $27.4 million or 84.5% percent of sales compared to
$29.6 million or 88.1% percent of sales for the quarter ended
January 31, 1995. This reduction as a percentage of sales was
principally due to improved manufacturing efficiencies in the
Company's ambulance and school bus divisions.
Selling, General & Administrative Expenses
Selling, general and administrative expenses were $3.7 million or
11.4% of sales for the quarter ended January 31, 1996 compared to
$3.5 million or 10.3% of sales for the quarter ended January 31,
1995. The overall increase was principally due to a charge of
$.4 million to reflect the impact of an unfavorable jury verdict
of certain litigation 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 decreased principally as a result of the
Company's overall reduction of its outstanding interest-bearing
debt. A deline in the Company's overall cost of funds also
contributed to the decrease interest expense.
Income Taxes
The Company's income tax expense was low relative to its earnings
for the three months ended January 31, 1996 due to the impact on
the income tax provision from the Company's utilization of net
operating losses to offset earnings. The Company's net operating
loss carryforward at October 31, 1995 was $6.4 million for tax
purposes and $10.3 million for financial reporting purposes.
Net Earnings
The Company's net earnings were $.7 million ($.10 per share) for
the quarter ended January 31, 1996 compared to a loss of
$.2 million ($.03 per share) for the quarter ended January 31,
1995. The improvement in the Company's earnings is principally
attributable to the Company's improved bus operations and lower
interest expense 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, 1996.
Cash used in operations was $.6 million for the quarter ended
January 31, 1996 compared to cash provided by operations of $1.3
million for quarter ended January 31, 1995. The decrease in cash
provided by operations principally resulted from the Company's
increases in finished goods inventories and reductions of
accounts payable during the quarter ended January 31, 1996.
Cash used in investing activities was $.1 million for the quarter
ended January 31, 1996 compared to cash provided by investing
activities of $.6 million for the quarter ended January 31, 1995.
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 provided by financing activities was $.5 million for
quarter ended January 31, 1996 compared to cash flow used in
financing activities of $1.6 million in the quarter ended January 31,
1995. Substantially all of this change resulted from
increases in borrowings in the quarter ended January 31, 1996.
The Company believes that its cash flows from operations and bank
credit lines will be sufficient to satisfy its future working
capital and capital expenditure requirements.
At January 31, 1996 there were no significant or unusual
contractual commitments or capital expenditure commitments.
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
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, 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 March 13, 1996 /s/ Larry W. Sayre
LARRY W. SAYRE
VICE PRESIDENT - FINANCE AND
CHIEF FINANCIAL OFFICER
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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