FORM 10-Q/A
AMENDMENT NO. 1
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 quarter period ended June 30, 1994
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OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
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Commission File Number 0-2642
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DE TOMASO INDUSTRIES, INC.
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(Exact Name of registrant as specified in its charter)
Maryland 52-0466460
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(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
P.O. Box 856, 107 Monmouth Street, Red Bank, NJ 07707
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(Address of principal executive offices)
(Zip Code)
(908) 842-7200
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(Registrant's telephone number, including area code)
No change
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(Former name, former address and former fiscal year, if changed since last
report)
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 ___
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APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.
Yes ___ 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 $2.50 par
value; 2,057,446.
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Item 2. Management's discussion and analysis of Financial
Conditions and Results of Operations
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As a consequence of the sale of the Company's Maserati subsidiary in
May 1993, which is reported as a discontinued operation in the accompanying
unaudited financial statements for the 1993 period, Management's discussion of
the Company's operations deals only with its continuing operations for the 1993
and 1994 periods.
Operations
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Three Months Ended June 30, 1994 and June 30, 1993
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Net sales increased approximately 6% to Lit. 13,440,000,000 ($8,522,5-
11)1 in the three month period ended June 30, 1994 compared to the second
quarter of 1993. Gross profits increased approximately 184% over the 1993
period, while gross profit margins increased comparably, to 13.6% in the 1994
period, from approximately 5% in the 1993 period.
The improvement in operating results is attributable primarily to
growth in G.B.M. motorcycle and related parts sales, which accounted for
approximately 93% of the Company's consolidated net sales in the second quarter
of 1994. While unit sales in the 1994 second quarter were essentially unchanged
from the 1993 period, unit production has been steadily increasing since new
management was installed at the G.B.M. facility early in the second quarter,
from approximately 14 units per day to over 19 units per day currently.
The Company's other subsidiaries are all operating at or near break-
even levels, and generate sufficient revenue to fund their respective opera-
tions. None of their operations, however, is material to the results of
operations of the Company on a consolidated basis.
The Company earned Lit. 46,000,000 ($29,169), equal to Lit. 15 ($.01)
per share in the 1994 second fiscal quarter, compared to net income of Lit.
174,480,000,000 ($110,640,450), equal to Lit. 57,067 ($36.19) per share, in the
1993 period. Results for 1993, however, are inclusive of income realized from
the sale by the Company of its 51% equity interest in its discontinued Maserati
subsidiary. Excluding discontinued operations, the Company's Lit. 46,000,000
net income in the second quarter of 1994 compares to a net loss of Lit. 1,350,0-
00,000 ($856,056), equal to Lit. 442 ($.28) per share, sustained in the 1993
period.
Six months ended June 30, 1994 and June 30, 1993
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Net sales for the six month period in 1994 increased over 20%, to Lit.
23,804,000,000 ($15,094,483) compared to the 1993 period, while gross profits
increased over 150% to Lit.
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1Lire amounts have been converted to dollar amounts at the rate of 1577
lire to the dollar, the rate prevailing at June 30, 1994.
2
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3,129,000,000 ($1,984,147) in the six months ended June 30, 1994, compared to
the 1993 period. G.B.M.'s unit sales increased approximately 23% in 1994. The
growth in gross profits is largely due to an improvement in the comparative mix
of motorcycles sold by G.B.M. between the two periods.
The Company lost Lit. 969,000,000 ($614,458), equal to Lit. 471 ($.30)
per share in the 1994 six month period, compared to net income (including
discontinued operations) of Lit. 156,287,000,000 ($99,103,994), equal to Lit.
51,117 ($3.28) per share, in the 1993 period. Excluding discontinued opera-
tions, the Company lost Lit. 4,554,000,000 ($2,887,762), equal to Lit. 1,489
($.94) per share, in the 1993 period.
Liquidity and Capital Resources
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Largely as a result of the May 1993 sale of its equity interest in the
Maserati subsidiary, the Company has ample liquid assets, and has reduced bank
debt by approximately Lit. 12,150,000,000 ($7,704,502) since December 31, 1993.
G.B.M., while it has been able to maintain operations by utilizing cash generat-
ed from operations, bank financing and credit from suppliers, will require
additional cash to support increasing sales in the second half of the current
year.
At December 31, 1993, the Company's G.B.M. subsidiary was past due in
payment of installments on a loan having an unpaid principal balance on such
date of Lit. 452,000,000 ($286,620) bearing interest at 8.1%. The loan was
repaid in full on October 19, 1994. G.B.M. was also past due at December 31,
1993 in payment of installments on a loan having an unpaid principal balance on
such date of Lit. 4,568,000,000 ($2,896,639) bearing interest at 11.5%. The
loan was refinanced in full at the end of 1994; the first installment on the
loan is payable at the end of January, 1995. The Company's American Finance,
S.p.A. subsidiary was past due at December 31, 1993 on a loan having an unpaid
principal balance on such date of Lit. 796,000,000 ($504,756) bearing interest
at 5.15%, but such loan has not yet been called by the lender. Nevertheless,
American Finance plans to retire the loan with internally available funds or
proceeds made available to it from other subsidiaries of the Company.
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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.
DE TOMASO INDUSTRIES, INC.
Dated: January 30, 1995 By: s/ Howard E. Chase
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Name: Howard E. Chase
Title: Vice President, Secretary
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