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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
April 30, 1994 1-7208
- ------------------------------ ----------------------
For the quarterly period ended Commission file number
DUPLEX PRODUCTS INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 36-2109817
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(State or other jurisdiction of (I.R.S. Employer Identification Number)
Incorporation or Organization)
1947 Bethany Road, Sycamore, IL 60178
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(Address of principal executive offices) (Zip code)
(815) 895-2101
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(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)
ASSETS
<TABLE>
<CAPTION>
April 30, 1994 October 30,1993
(Unaudited) (Audited)
----------- -----------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 16,007 $ 18,419
Receivables 77,824 76,021
Inventories 6,936 9,107
Income tax refund receivable 687 1,537
Deferred income tax benefits 7,100 3,500
-------- --------
Total current assets 108,554 108,584
Property, plant, and equipment-net 42,008 44,511
Other assets 3,577 2,964
-------- --------
Total Assets $154,139 $156,059
-------- --------
-------- --------
</TABLE>
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<S> <C> <C>
Current liabilities:
Current portion of long-term debt $ 1,212 $ 1,562
Accounts payable 8,227 10,505
Accrued liabilities 23,620 13,145
-------- --------
Total current liabilities 33,059 25,212
Long term debt 6,839 7,150
Deferred liabilities 6,406 6,434
Stockholder's equity 107,835 117,263
-------- --------
Total Liabilities & Equity $154,139 $156,059
-------- --------
-------- --------
</TABLE>
The accompanying notes are an integral part of these consolidated condensed
financial statements.
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DUPLEX PRODUCTS INC.
CONSOLIDATED CONDENSED INCOME STATEMENT
(Amounts in Thousands-Except Per Share)
Unaudited
<TABLE>
<CAPTION>
Second Quarter First Half
4/30/94 5/01/93 4/30/94 5/01/93
<S> <C> <C> <C> <C>
Net sales $ 67,744 $ 65,145 $ 134,226 $ 129,933
Cost of goods sold 52,679 48,830 103,104 97,286
---------- ---------- ---------- ----------
Gross profit 15,065 16,315 31,122 32,647
Selling & administrative
expenses 17,001 15,666 32,854 31,412
Restructuring costs 12,000 1,500 12,000 1,500
---------- ---------- ---------- -----------
Operating loss (13,936) (851) (13,732) (265)
Other income (expenses):
Interest expense (147) (150) (295) (300)
Other income 89 307 242 518
---------- ---------- ---------- ----------
(58) 157 (53) 218
---------- ---------- ---------- ----------
Loss before income tax credits (13,994) (694) (13,785) (47)
Income tax credits (5,478) (264) (5,407) (18)
---------- ---------- ---------- ----------
Loss before cumulative effect
of a change in accounting for
income taxes (8,516) (430) (8,378) (29)
Cumulative effect of a change in
accounting for income taxes ____ ____ ____ 1,000
---------- ---------- ---------- ----------
NET EARNINGS (LOSS) $ (8,516) $ (430) $ (8,378) $ 971
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Loss per share before cumulative
effect of a change in
accounting for income taxes $ (1.12) $ (.05) $ (1.10) $ ----
Cumulative effect of a change in
accounting for income taxes --- --- --- .13
---------- ---------- ---------- ----------
Earnings (loss) per share $ (1.12) $ ( .05) $ (1.10) $ .13
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Average common shares
outstanding 7,589,000 7,752,000 7,618,000 7,754,000
</TABLE>
The accompanying notes are an integral part of these consolidated condensed
financial statements.
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DUPLEX PRODUCTS INC.
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
(Amounts in Thousands-Except Per Share)
Unaudited
<TABLE>
<CAPTION>
First Half
4/30/94 5/01/93
---------- ----------
<S> <C> <C>
Cash flows from operating activities:
Net earnings (loss) $(8,378) $ 971
Depreciation and amortization 3,376 3,500
Restructuring costs 12,000 1,500
Other items (7,876) (3,805)
-------- -------
Net cash flows used in operating activities ( 878) (2,166)
Cash flows from investing activities:
Property, plant, and equipment additions (873) (540)
------- -------
Net cash used in investing activities (873) (540)
------- -------
Cash flows from financing activities:
Payments on long-term obligations (661) (580)
------- -------
Net cash used in financing activities (661) (580)
------- -------
Net increase (decrease) in cash and cash
equivalents (2,412) 1,046
Cash and cash equivalents at beginning of period 18,419 22,326
------- -------
Cash and cash equivalents at end of period $16,007 $23,372
------- -------
------- -------
</TABLE>
The accompanying notes are an integral part of these consolidated condensed
financial statements.
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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.
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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 half of 1993 to April 30, 1994,
while the analysis of results of operations compares the results for the
second quarter and six months ended April 30, 1994, with the quarter and six
months ended May 1, 1993.
Liquidity and Capital Resources
No significant changes occurred relative to liquidity or capital during the
first six months of fiscal 1994 or from the end of the first half of 1993
to April 30, 1994.
Results of Operations
For the second quarter ended April 30, 1994, the net loss was $8,516,000,
equal to $1.12 per share, compared with a net loss of $430,000, or 5 cents
per share in the corresponding period last year. Earnings in the quarter
were reduced by pretax restructuring charges of $12,000,000 and $1,500,000,
respectively, in fiscal 1994 and 1993. Sales in the quarter were
$67,744,000, up 4% from $65,145,000 in last year's second quarter.
For the first six months of the year, the net loss was $8,378,000, equal to
$1.10 per share compared with the net earnings of $971,000, or 13 cents per
share in fiscal 1993. Sales were $134,226,000, up 3% from the $129,933,000
reported last year.
The operating loss was the result of lower-realized selling prices which
offset higher revenues and a lower cost structure.
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Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (continued)
During the second quarter, the Company recorded a $12 million pretax charge
related to a restructuring program. The objective of this program is to
increase the Company's competitiveness, permit investments in new business
development and improve margins. The restructuring program includes the
consolidation and streamlining of the manufacturing organization.
The restructuring charge consists of approximately $6.0 million of anticipated
cash payments related to employee terminations. Another $2.4 million in cash
outflows relates primarily to facility closings. In addition, the
restructuring includes $3.6 million to write down assets. The Company expects
the program to be substantially complete in 18 months.
1994 continues to be a transitional year for Duplex, and we're aggressively
working to return the company to profitability. We've reported higher sales
for two quarters in a row, compared to declining sales for four consecutive
years, and that is a very good indication of the progress we've made in
focusing our sales organization.
Part 3. Other Information
Item 6. Reports on Form 8-K
No report on Form 8-K was filed for the quarter ended April 30, 1994.
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DUPLEX PRODUCTS INC.
FORM 10-Q
For the Quarterly Period Ended April 30, 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
May 27, 1994
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Date Ben L. McSwiney
President and Chief Executive Officer
May 27, 1994
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Date Andrew N. Peterson
Vice President-Finance and
Chief Financial Officer
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