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Previous: FIRST SECURITYFED FINANCIAL INC, S-1, 1997-07-21 |
Next: AIC INTERNATIONAL INC, 10QSB, 1997-07-22 |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES AND EXCHANGE ACT OF 1934
For Quarter Ended May 31, 1996 Commission file number 1-7948
------------ -------
AIC INTERNATIONAL, INC,
(Exact name of small business issuer as specified in its charter)
Delaware
(State or other jurisdiction of incorporation or organization)
11-2192898
(I.R.S. Employer Identification No.)
117 East 57th Street, Room 21-H New York, NY
10022 (Address of principal executive offices -
Zip code)
Issuer's telephone number, including area code (212) 838-3220
Former name, former address and former fiscal year, if changed since last
report.
Check whether the issuer (1) filed all reports required to be filed by
section 13 or 15 (d) of the Exchange Act during the past 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
Number of shares of each class of common stock outstanding as of:
May 31, 1996 - 4,207,379
<PAGE>
AIC International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(000 omitted except share data)
<TABLE>
<CAPTION>
May 31, February 29,
1996 1996
__________ ___________
(Unaudited)
<S> <C> <C>
Assets
Current:
Cash $ 341 $ 471
Trade receivable, less allowance of $96 and $83
for possible losses 1,896 1,480
Merchandise inventories 3,649 3,529
Prepaid expenses and other current assets 422 318
______ _______
Total current assets 6,308 5,798
Property and equipment, at cost less accumulated
depreciation and amortization 59 62
Other assets 18 18
______ _______
$ 5,878 $ 6,385
====== =======
Liabilities and Stockholders' Equity
Current:
Bank loans $ 1,162 $ 1,566
Accounts payable - trade 119 109
Due to related party 1,261 1,399
Income taxes payable 136 83
Other taxes 381 213
Liability for product warranties 42 94
Accrued expenses and other liabilities 1,197 293
______ ______
Total current liabilities 4,298 3,757
Accrued pension costs 123 127
______ ______
Total liabilities 4,421 3,884
______ ______
Stockholders' equity
Common stock, $.10 par-shares authorized -
10,000,000; issued - 4,244,879 424 424
Additional paid-in capital 6,720 6,720
Deficit (6,248) (6,315)
Accumulated translation adjustment 1,180 1,277
Treasury stock, at cost - 37,500 shares (112) (112)
______ ______
Total stockholders' equity 1,964 1,994
______ ______
$ 6,385 $ 5,878
====== ======
</TABLE>
See accompanying notes to condensed consolidated financial statements.
2
<PAGE>
AIC International, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
(000 omitted except per share data)
<TABLE>
<CAPTION>
Three months ended May 31, 1996 1995
<S> <C> <C>
_______ _______
Net sales $3,787 $3,163
_______ _______
Cost of goods sold 2,684 1,986
Selling, general and administrative expenses 1,036 999
_______ _______
Total costs and expenses 3,720 2,985
_______ _______
Net income $ 67 $ 178
_______ _______
Net income per share $ .02 $ .04
======= =======
Weighted average number of shares 4,207 4,207
======= =======
</TABLE>
See accompanying notes to condensed consolidated financial statements.
3
<PAGE>
AIC International, Inc. and Subsidiaries
Condensed Consolidated Statement of Stockholders' Equity
(Unaudited)
(000 omitted)
<TABLE>
<CAPTION>
Accumulated
Additional Paid- Translation Treasury Stock,
Total Common Stock In Capital Deficit Adjustment at Cost
_________ ____________ _______________ _______ ___________ _______________
<S> <C> <C> <C> <C> <C> <C>
Balance, March 1, 1996 $1,994 $424 $6,720 $(6,315) $1,277 $(112)
Net income for the three
months ended May 31,
1996 67 - - 67 - -
Aggregate adjustment for the
three months ended May
31, 1996 resulting from the
translation of foreign
currency statements (97) - - - (97)
________ ________ ________ ________ ________ _______
Balance, May 31, 1996 $1,964 $424 $6,720 $(6,248) $1,180 $(112)
======== ======== ======== ======== ======== =======
</TABLE>
See accompanying notes to condensed consolidated financial statements.
4
<PAGE>
AIC International, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(000 omitted)
<TABLE>
<CAPTION>
Three months ended May 31, 1996 1995
______ ______
<S> <C> <C>
Cash flows from operating activities:
Net income $ 67 $ 178
Adjustments to reconcile net income to net cash provided by (used in)
operating activities:
Depreciation and amortization 6 16
Increase in provision for possible losses on accounts
receivable 13 -
Other (97) 101
Decrease (increase) in:
Trade receivable (429) (70)
Merchandise inventories (120) (1,123)
Due from related party - 19
Prepaid expenses and other current assets (104) (594)
Increase (decrease) in:
Accounts payable - trade 10 459
Taxes 221 94
Accrued expenses and other liabilities 848 (27)
Due to related party (138) -
______ ______
Total adjustments 210 (1,125)
______ ______
Net cash provided by (used in) operating activities 277 (947)
Cash flows from investing activities:
Capital expenditures, net of proceeds from sale of
equipment (3) (28)
Cash flows from financing activities
Net borrowings from (repayments to) banks (404) 774
______ ______
Net decrease in cash (130) (201)
Cash, beginning of period 471 569
______ ______
Cash, end of period $ 341 $ 368
====== ======
</TABLE>
See accompanying notes to condensed consolidated financial statements.
5
<PAGE>
AIC International, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Note 1. Results for the periods shown are not necessarily indicative of
results for the full year.
Note 2. The data herein reflects all the adjustments which, in the opinion
of management, are necessary for a fair statement of the results for the interim
periods.
Note 3. There were no sales of unregistered securities during the quarter
ended May 31, 1996.
Note 4. The financial data are subject to year-end audit. Note disclosures
required under generally accepted accounting principles are included in the
Company's annual report (Form 10-KSB) for the fiscal year ended February 29,
1996. Form 10-QSB should be read in conjunction with such annual report (Form
10-KSB).
6
<PAGE>
AIC International, Inc. and Subsidiaries
Management's Discussion and Analysis of Financial
Condition and Results of Operations
Results of Operations: Three months ended May 31, 1996 compared with three
months ended May 31, 1995:
All statements contained herein that are not historical facts, including,
but not limited to, statements regarding the Company's current business
strategy, the Company's projected sources and uses of cash, and the Company's
plans for future development and operations, are based upon current
expectations. These statements are forward-looking in nature and involve a
number of risks and uncertainties. Actual results may differ materially. Among
the factors that could cause actual results to differ materially are the
following: the availability of sufficient capital to finance the Company's
business plans on terms satisfactory to the Company; competitive factors;
changes in labor, equipment and capital costs; changes in regulations affecting
the Company's business and economic conditions; and factors described from time
to time in the Company's reports filed with the Securities and Exchange
Commission. The Company cautions readers not to place undue reliance on any such
forward looking statements, which statements are made pursuant to the Private
Litigation Reform Act of 1995 and, as a result, speak only as of the date made.
Net Sales
For the three months ended May 31, 1996 the Company's net sales increased
by $624,000 to $3,787,000 from sales of $3,163,000 for the three months ended
May 31, 1995. Sales by the Company's German subsidiary, Soligor GmbH, Foto Optik
Video Electronik ("Soligor GmbH"), increased by DM 1,189,000 for the three
months ended May 31, 1996 which, when combined with changes in the exchange
rate, resulted in an increase in sales of $624,000 after translation. The
Company's sales increased due to efforts of Soligor GmbH in promoting the sale
of new products, such as electronic products and video equipment, an increasing
number of accessories, as well as video surveillance equipment.
Cost of Goods Sold
As a percentage of sales, the Company's cost of goods sold for the three
months ended May 31, 1996 and 1995 were 70.9% and 62.8% of sales, respectively.
The increase in cost of goods sold as a percentage of sales was caused by
changes of exchange rates on Japanese Yen, Dutch Marks and U.S. Dollar.
7
<PAGE>
AIC International, Inc. and Subsidiaries
Management's Discussion and Analysis of Financial
Condition and Results of Operations
Selling, General and Administrative Expenses
As a percentage of sales, selling, general and administrative ("SG & A")
expenses for the three months ended May 31, 1996 and 1995 were 27.4% and 31.6%
of sales, respectively. SG & A expenses increased from $999,000 for the three
months ended May 31, 1995 to $1,036,000 for the three months ended May 31, 1996.
The decrease in SG & A expenses as a percentage of sales was the result of
increased net sales.
8
<PAGE>
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
AIC INTERNATIONAL, INC.
Registrant
By: /s/Stephen Lai
-------------------------
Stephen Lai
Chief Financial Officer and
Chief Accounting Officer
9
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000002880
<NAME> AIC INTERNATIONAL, INC.
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> FEB-28-1997
<PERIOD-START> MAR-1-1996
<PERIOD-END> MAY-31-1996
<CASH> 341
<SECURITIES> 0
<RECEIVABLES> 1,992
<ALLOWANCES> (96)
<INVENTORY> 3,649
<CURRENT-ASSETS> 6,308
<PP&E> 364
<DEPRECIATION> 305
<TOTAL-ASSETS> 6,385
<CURRENT-LIABILITIES> 4,298
<BONDS> 0
0
0
<COMMON> 424
<OTHER-SE> 1,540
<TOTAL-LIABILITY-AND-EQUITY> 6,385
<SALES> 3,787
<TOTAL-REVENUES> 3,787
<CGS> 2,684
<TOTAL-COSTS> 3,720
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 67
<INCOME-TAX> 0
<INCOME-CONTINUING> 67
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 67
<EPS-PRIMARY> 0.02
<EPS-DILUTED> 0
</TABLE>
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