<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT
Pursuant to Section 13 OR 15(d) of
the Securities Exchange Act of 1934
For the quarterly period ended: January 29, 1994
Commission file number: 1-7208
DUPLEX PRODUCTS INC.
- -----------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of Incorporation or Organization)
I.R.S. Employer Identification Number: 36-2109817
1947 Bethany Road, Sycamore, IL 60178
(Address of principal executive offices) (Zip code)
(815) 895-2101
(Registrant's telephone number, including area code)
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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Item 1. FINANCIAL STATEMENTS
DUPLEX PRODUCTS INC.
CONSOLIDATED CONDENSED BALANCE SHEET
(Amounts in Thousands)
<TABLE>
<CAPTION>
Jan. 29,1994 Oct. 30,1993
(Unaudited) (Audited)
------------ ------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $14,745 $18,419
Receivables 77,152 76,021
Inventories 8,838 9,107
Income tax refund receivable 1,051 1,537
Deferred income tax benefits 3,500 3,500
------- -------
Total current assets 105,286 108,584
Property, plant, and equipment-net 43,396 44,511
Other assets 2,249 2,964
------ ------
Total Assets $150,931 $156,059
-------- ---------
-------- ---------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 1,212 $ 1,562
Accounts payable 7,288 10,505
Accrued liabilities 12,651 13,145
------ ------
Total current liabilities 21,151 25,212
Long term debt 6,994 7,150
Deferred liabilities 6,409 6,434
Stockholder's equity 116,377 117,263
------- -------
Total Liabilities & Equity $150,931 $156,059
-------- --------
-------- --------
</TABLE>
The accompanying notes are an integral part of these consolidated
condensed financial statements.
<PAGE> 3
DUPLEX PRODUCTS INC.
CONSOLIDATED CONDENSED INCOME STATEMENT
(Amounts in Thousands-Except Per Share)
Unaudited
<TABLE>
<CAPTION>
First Quarter
Jan. 29, 1994 Jan. 30, 1993
------------- -------------
<S> <C> <C>
Net sales $66,482 $64,788
Cost of goods sold 50,425 48,456
-------- --------
Gross profit 16,057 16,332
Selling and administrative expenses 15,853 15,746
-------- --------
Operating profit 204 586
Other income (expense):
Interest expense (147) (150)
Other income 152 211
-------- --------
5 61
-------- --------
Earnings before income taxes 209 647
Income taxes 71 246
-------- --------
Earnings before cumulative effect
of a change in accounting
for income taxes 138 401
Cumulative effect of a change in
accounting for income taxes --- 1,000
-------- --------
NET EARNINGS $ 138 $ 1,401
-------- --------
-------- --------
Earnings per share before cumulative
effect of a change in accounting
for income taxes $.02 $.05
Cumulative effect of a change in
accounting for income taxes --- .13
-------- --------
Earnings per share $ .02 $ .18
-------- --------
-------- --------
Average common shares outstanding 7,647,000 7,757,000
</TABLE>
The accompanying notes are an integral part of these consolidated
condensed financial statements.
<PAGE> 4
DUPLEX PRODUCTS INC.
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
(Amounts in Thousands-Except Per Share)
Unaudited
<TABLE>
<CAPTION>
First Quarter
Jan. 29, 1994 Jan. 30, 1993
------------- -------------
<S> <C> <C>
Cash flows from operating
activities:
Net earnings $ 138 $ 1,401
Depreciation and amortization 1,691 1,750
Other items (4,421) (4,855)
--------- ---------
Net cash flows from
operating activities (2,592) (1,704)
Cash flows from investing
activities:
Property, plant, & equipment
(additions) net of disposals (576) 268
--------- ---------
Net cash used in
investing activities (576) 268
--------- ---------
Cash flows from financing
activities:
Payments on long-term obligations (506) (426)
--------- ---------
Net cash used in financing
activities (506) (426)
Net (decrease)in cash
and cash equivalents (3,674) (1,862)
Cash and cash equivalents
at beginning of period 18,419 22,326
--------- ---------
Cash and cash equivalents
at end of period $ 14,745 $ 20,464
--------- ---------
--------- ---------
</TABLE>
The accompanying notes are an integral part of these consolidated
condensed financial statements.
<PAGE> 5
DUPLEX PRODUCTS INC.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
Note 1.
The Consolidated condensed financial statements included herein
have been prepared by the Corporation, without audit, pursuant to
the rules and regulations of the Securities and Exchange
Commission. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed or
omitted pursuant to such rules and regulations, although the
Corporation believes that the disclosures are adequate to make the
information presented not misleading.
Note 2.
These statements reflect all adjustments (which include
only normal recurring accruals) necessary, in the opinion of
management, for a fair presentation of the information contained
therein. It is suggested that these condensed financial
statements be read in conjunction with the financial statements
and notes thereto included in the Corporation's annual report on
Form 10-K for the year ended October 30, 1993.
Note 3.
Operating results for interim periods are not necessarily
indicative of annual results.
Note 4.
Earnings per share are based on the weighted average
number of common shares outstanding.
<PAGE> 6
DUPLEX PRODUCTS INC.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The Company's 1993 Annual Report to Stockholders contains
management's discussion and analysis of financial condition and
results of operations at, and for the year ended, October 30,
1993. The following discussion and analysis covers material
changes in the Company's financial condition from October 30,
1993, and the end of the first quarter of 1993, to the end of the
first quarter of 1994, while the analysis of results of operations
compares the results for the quarter ended January 29, 1994, with
the first quarter of fiscal 1993.
Liquidity and Capital Resources
No significant changes occurred relative to liquidity or
capital during the first quarter of 1994 or from the end of the
first quarter of 1993 to the end of the first quarter of 1994.
Results of Operations
For the first quarter ended January 29, 1994, net income was
$138,000, or 2 cents per share, down from $1,401,000, or 18 cents
per share in the first quarter of 1993. The cumulative effect of
a change in accounting for income taxes increased earnings in last
year's quarter by $1,000,000, or 13 cents per share. Sales were
$66,482,000, up 3% from $64,788,000 in the first quarter of 1993.
It is encouraging to report higher sales. Excluding the fourth
quarter of 1992 which had an extra week, the last time the company
reported higher revenues was the fourth quarter of 1989.
Gross margins declined, however, as lower-realized selling
prices offset the higher revenues and the benefits of our reduced
cost structure. Earnings for the quarter were below our
expectations. The business forms industry continues to be
affected by weak demand, over-capacity, and strong pricing
pressures.
Higher revenues in the quarter are an indication of the
progress we have made in focusing our sales organization to
provide customer solutions using our forms management
capabilities. This consultative selling approach in
combination with current initiatives to reduce costs should
lead to improved results over the balance of the year.
Item 6. Reports on Form 8-K
No report on Form 8-K was filed for the quarter ended January
29, 1994.
<PAGE> 7
DUPLEX PRODUCTS INC.
FORM 10-Q
For the Quarterly Period Ended January 29, 1994
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.
DUPLEX PRODUCTS INC
February 25, 1994
Date Ben L. McSwiney
President & Chief Executive Officer
February 25, 1994
Date Andrew N. Peterson
Vice President-Finance & C.F.O.
