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, 2000
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)
15 Compound Drive
Hutchinson, Kansas 67502-4349
(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 7,475,406
Class Outstanding at March 8, 2000
COLLINS INDUSTRIES, INC. AND SUBSIDIARIES
FORM 10-Q
January 31, 2000
INDEX
PART I. FINANCIAL INFORMATION PAGE NO
Item 1. Financial Statements:
Consolidated Condensed Balance Sheets
January 31, 2000 and October 31, l999 3
Consolidated Condensed Statements of Income -
Three Months Ended January 31, 2000 and 1999 4
Consolidated Condensed Statements of Cash Flow -
Three Months Ended January 31, 2000 and 1999 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 6. Exhibits and Reports on Form 8-K 11
SIGNATURES 12
PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements
Collins Industries, Inc. and Subsidiaries
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
January 31, October 31,
2000 1999
ASSETS
Current Assets:
Cash $ 776,354 $ 344,948
Receivables, trade & other 5,107,228 5,146,834
Inventories, lower of cost (FIFO)
or market 35,046,714 36,218,152
Prepaid expenses and other current
assets 573,276 1,092,872
Total current assets 41,503,572 42,802,806
Property and equipment, at cost 41,838,630 41,234,902
Less: accumulated depreciation 23,449,016 22,895,341
Net property and equipment 18,389,614 18,339,561
Other assets 5,249,915 5,279,028
Total assets $65,143,101 $66,421,395
LIABILITIES & SHAREHOLDERS' INVESTMENT
Current liabilities:
Current maturities of long-term
debt & capitalized leases 1,475,598 1,460,113
Accounts payable 17,317,441 19,321,738
Accrued expenses 4,941,253 5,875,654
Total current liabilities 23,734,292 26,657,505
Long-term debt and capitalized leases 17,115,167 15,803,399
Shareholders' investment:
Common stock 747,541 746,541
Paid-in capital 18,149,530 18,094,900
Deferred compensation (986,668) (1,033,521)
Retained earnings 6,383,239 6,152,571
Total shareholders' investment 24,293,642 23,960,491
Total liabilities & shareholders'
investment $65,143,101 $66,421,395
(See accompanying notes)
Collins Industries, Inc. and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended
January 31,
2000 1999
Sales $49,713,255 $38,174,032
Cost of sales 42,630,975 32,491,450
Gross profit 7,082,280 5,682,582
Selling, general and administrative expenses 5,178,689 4,346,537
Income from operations 1,903,591 1,336,045
Other income (expense):
Interest expense (405,995) (427,681)
Other, net 60,665 156,484
(345,330) (271,197)
Income before provision for income taxes 1,558,261 1,064,848
Provision for income taxes 555,000 394,000
Net income $ 1,003,261 $ 670,848
Earnings per share
Basic $ .14 $ .09
Diluted $ .13 $ .09
Dividends per share $ .105 $ .025
Weighted average common and common
equivilent shares outstanding:
Basic 7,212,406 7,420,974
Diluted 7,538,214 7,468,975
(See accompanying notes)
Collins Industries, Inc. and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW
(Unaudited)
Three Months Ended
January 31,
2000 1999
Cash flow from operations:
Cash received from customers $49,752,861 $40,823,896
Cash paid to suppliers and employees (48,785,703) (37,056,833)
Interest paid (399,178) (391,301)
Income taxes paid (73,450) -
Cash provided by operations 494,530 3,375,762
Cash flow from investing activities:
Capital expenditures and acquisition (603,730) (5,599,938)
Other, net (14,054) (63,961)
Cash used in investing activities (617,784) (5,663,899)
Cash flow from financing activities:
Net increase in other borrowings 1,703,909 3,599,561
Principal payments of long-term debt
and capitalized leases (376,656) (218,001)
Proceeds from exercise of stock options - 6,126
Acquisition and retirement of treasury
stock - (111,600)
Payment of dividends (772,593) (185,772)
Cash provided by financing activities 554,660 3,090,314
Net increase in cash 431,406 802,177
Cash at beginning of period 344,948 207,223
Cash at end of period $ 776,354 $ 1,009,400
Reconciliation of net income to net cash
provided by operations:
Net income $ 1,003,261 $ 670,848
Depreciation and amortization 750,822 532,159
Decrease in receivables 39,606 2,649,864
Decrease (increase) in inventories 1,171,438 (3,312,224)
Decrease (increase) in prepaid
expenses and other current assets 519,596 (47,567)
Increase (decrease) in accounts
payable and accrued expenses (2,938,698) 2,882,682
Other (51,495) -
Cash provided by operations $ 494,530 $ 3,375,762
(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 at January
31, 2000 and the results of operations and the cash flows for the
three months ended January 31, 2000 and 1999.
The Company suggests that the unaudited Consolidated Condensed
Financial Statements for the three months ended January 31, 2000
be read in conjunction with the Company's Annual Report for the
year ended October 31, 1999.
(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, 2000 and October
31, 1999, consisted of the following:
January 31, October 31,
2000 1999
Chassis $ 6,463,940 $ 5,507,600
Raw materials & components 11,560,796 11,066,127
Work-in-process 6,019,719 5,329,627
Finished goods 11,002,259 14,314,798
$35,046,714 $36,218,152
(3) Earnings per Share
Dilutive securities, consisting of options to purchase the
Company's common stock, and restricted stock awards included in
the calculation of diluted weighted average common shares was
325,808 for the three month period ended January 31, 2000, and
48,001 shares for the three month period ended January 31, 1999.
(4) Contingencies and Litigation
At January 31, 2000, 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.
(5) Segment Information
Three Months Ended
(In Thousands) January 31,
2000 1999
Revenues from external customers:
Ambulance $22,955 $16,785
Buses 17,961 15,981
Terminal Trucks 8,797 5,408
Other - -
Consolidated Total $49,713 $38,174
Segment profit (pretax):
Ambulance $ 701 $ 358
Buses 1,096 1,477
Terminal Trucks 630 2
Other (869) (772)
Consolidated Total $ 1,558 $ 1,065
As of
January 31, October 31,
2000 1999
Segment assets:
Ambulance $28,183 $26,996
Buses 24,932 26,713
Terminal Trucks 9,514 10,197
Other 2,514 2,515
Consolidated Total $65,143 $66,421
Item 2 - Management's Discussion and Analysis of Financial
Condition and Results of Operations
RESULTS OF OPERATIONS:
Sales
Sales for the quarter ended January 31, 2000, were $49.7 million
or 30% higher than the $38.2 million in net sales for the quarter
ended January 31, 1999. This increase was principally
attributable to higher ambulance and terminal truck sales.
The Company's consolidated sales backlog at January 31, 2000
increased 10% to $63.4 million compared to $57.4 million at
January 31, 1999. The Company's consolidated sales backlog was
$59.6 million at October 31, 1999.
Selling, General and Administrative Expenses
Selling, general and administrative expenses for the quarter
ended January 31, 2000, were 10.4% of sales compared to 11.4% for
the same period in fiscal 1999. The percentage decrease was
principally due to higher sales for the quarter ending January
31, 2000, without a corresponding increase in expenses.
Other Income (Expense)
Interest expense decreased principally as a result of the
Company's reduction in debt. This decrease was partially offset
by an overall increase of the Company's effective interest rates.
The increase of the Company's effective interest rate was
principally due to Federal Reserve Board rate increases in the
quarter ended January 31, 2000.
Net Income
The Company's net income for the quarter ended January 31, 2000
was $1.0 million ($.13 per share-diluted) compared to $.7 million
($.09 per share-diluted) for the same period in fiscal 1999. The
increase in the Company's net earnings was principally
attributable to stronger operating results from ambulance and
terminal truck products. This increase was partially offset by
lower profits from bus products.
LIQUIDITY AND CAPITAL RESOURCES:
The Company used existing credit lines, internally generated
funds and supplier financing to fund its operations and capital
expenditures for the quarter ended January 31, 2000.
Cash provided by operations was $.7 million for the three months
ended January 31, 2000 compared to $3.4 million for the three
months ended January 31, 1999. Cash provided by operations
principally resulted from the Company's net income ($1.0
million), depreciation and amortization ($.8 million) a decrease
in inventory ($1.2 million), a decrease in prepaid expense ($.7
million), and was partially offset by a decrease in accounts
payable ($2.0 million), and a decrease in accrued expenses
($.9 million), during the three months ended January 31, 2000.
Cash used in investing activities was $.8 million for the three
months ended January 31, 2000 compared to $5.7 million for the
three months ended January 31, 1999. The decrease was
principally due to lower capital expenditures.
Cash flow provided by financing activities was $.6 million for
the three months ended January 31, 2000 compared to $3.1 million
for the three months ended January 31, 1999. This change
principally resulted from lower new borrowings for the three
months ended January 31, 2000 compared to the same period in
1999. This decrease was partially offset by the payment of a
special cash dividend of $.08 per share ($.8 million) paid in
January, 2000.
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.
Year 2000 Issue
The Company has fully implemented its plan to ensure that its
computer equipment and related software function properly with
respect to dates in the year 2000 ("Y2K") and thereafter.
The Company has not experienced any significant Y2K problems with
respect to any of its information technology ("IT") or non-IT
systems. Accordingly, the Company does not anticipate spending
any additional efforts or funds with respect to Y2K issues.
However, until the further passage of time, there can be no
assurance that the Y2K issues of other entities will not have a
material adverse impact on the Company's results of operations.
Cautionary Statement Regarding Risks and Uncertainties That May
Affect Future Results
This report and other written reports and oral statements made
from time to time by the Company may contain so-called "forward-
looking statements" about the business, financial conditions,
prospects of the Company and year 2000 issues, all of which are
subject to risks and uncertainties. One can identify these
forward-looking statements by their use of words such as
"expects", "plans", "will", "estimates", "forecasts", "projects",
and other words of similar meaning. One can also identify them
by the fact that they do not relate strictly to historical or
current facts. One should understand that it is not possible to
predict or identify all factors which involve risks and
uncertainties. Consequently, the reader should not consider any
such list or listing to be a complete statement of all potential
risks or uncertainties.
No forward-looking statement can be guaranteed and actual future
results may vary materially. The actual results of the Company
could differ materially from those indicated by the forward-
looking statements because of various risks and uncertainties
including without limitation, changes in product demand, the
availability of vehicle chassis, adequate direct labor pools,
changes in competition, interest rate fluctuations, development
of new products, various inventory risks due to changes in market
conditions, changes in tax and other governmental rules and
regulations applicable to the Company, substantial dependence on
third parties for product quality, reliability and timely
fulfillment of orders and other risks indicated in the Company's
filings with the Securities and Exchange Commission.
The Company does not assume the obligation to update any forward-
looking statement. One should carefully evaluate such statements
in light of factors described in the Company's filings with the
Securities and Exchange Commission, especially on Forms 10-K, 10-Q
and 8-K (if any).
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, 2000.
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 8, 2000 /s/ Larry W. Sayre
LARRY W. SAYRE
VICE PRESIDENT - FINANCE AND
CHIEF FINANCIAL OFFICER
(Principal Accounting Officer)
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