UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
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 0-9255
DENCOR ENERGY COST CONTROLS, INC.
(Exact name of small business issuer specified in its charter)
Colorado 84-0658020
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization)Identification No.)
1450 West Evans, Denver, Colorado 80223
(Address of principal executive office) (Zip Code)
(303) 922-1888
(Registrant's telephone number, including area code)
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
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date. No par value per share:
3,671,304 shares outstanding at September 21, 1995.
Transitional Small Business Disclosure Format
Yes No X
DENCOR ENERGY COST CONTROLS, INC.
PART 1 - FINANCIAL INFORMATION
Item 1. Financial Statements
(Condensed Balance Sheets)
ASSETS Sept. 30 Dec. 31
1995 1994
(unaudited)
CURRENT ASSETS:
Cash $ 700 $ 13,200
Accounts Receivable,net of allowance for
doubtful accounts of $11,400 103,900 54,600
Inventories 169,400 153,600
Other 14,600 8,400
TOTAL CURRENT ASSETS 288,600 229,800
Furniture & Equipment 213,300 213,300
Less Accumulated Depreciation (206,100) (202,000)
7,200 11,300
Other Receivables, net of allowance for doubtful
receivables of $1,900 8,100 7,600
$303,900 $248,700
LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes Payable - Shareholders $ 93,400 $ 93,100
Accounts Payable 74,200 53,700
Accrued Compensation and Benefits 28,300 25,500
Accrued Interest - Shareholders 30,100 17,600
Warranty Reserve 6,200 5,700
Other 4,600 1,300
TOTAL CURRENT LIABILITIES 236,800 196,900
STOCKHOLDERS' EQUITY
Common Stock, no par value, authorized 5,000,000
shares; issued & outstanding, 3,671,304 shares 1,147,600 1,147,600
Deficit (1,080,500) (1,095,800)
Stockholders' Equity 67,100 51,800
$ 303,900 $ 248,700
See notes to condensed financial statements
DENCOR ENERGY COST CONTROLS, INC.
STATEMENTS OF OPERATIONS
(unaudited)
Three Months Nine Months
Ended Sept. 30 Ended Sept. 30
1995 1994 1995 1994
REVENUES:
Net Sales $ 149,000 $ 127,000 $ 434,800 $ 397,600
Interest and Other 3,800 2,200 7,200 5,600
TOTAL REVENUES 152,800 129,200 442,000 403,200
COSTS AND EXPENSES;
Cost of Products Sold 89,500 67,400 243,800 211,200
Selling 5,700 10,000 15,600 27,000
General and Administrative 33,000 33,400 98,100 103,100
Research and Development 19,500 16,300 56,000 51,200
Provision for doubtful accounts receivable 600
Interest 4,300 4,200 13,200 11,400
152,000 131,300 426,700 404,500
NET EARNINGS (LOSS) $ 800 $ (2,100) $ 15,300 $ (1,300)
NET EARNINGS (LOSS) PER
COMMON SHARE:
Net Earnings (loss) $ .0003 $ (.0006) $ .0042 $ (.0004)
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 3,671,304 3,671,304 3,671,304 3,671,304
See notes to condensed financial statements
DENCOR ENERGY COST CONTROLS, INC.
STATEMENT OF CASH FLOWS
(unaudited)
Nine Months Ended Sept. 30
1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 15,300 $ (1,300)
Adjustments to reconcile net earnings
to net cash used in operating activities:
Depreciation 4,100 5,100
Provision for (recovery of) losses
on doubtful accounts receivable (1,500)
Changes in operating assets and liabilities:
Accounts and other receivables (49,800) (26,700)
Inventories (15,800) 1,300
Other assets (6,200) (3,400)
Accounts payable 20,500 17,200
Accrued compensation and benefits 2,800 (2,400)
Accrued interest - shareholders 12,500 3,600
Warranty reserve 500 (1,500)
Other liabilities 3,300 9,800
Total adjustments (28,100) 1,500
Net cash used in operating activities (12,800) 200
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of notes payable-Bank 5,000
Proceeds from issuance of notes payable-Shareholders 300 43,000
Principal payments on notes payable-Bank (35,000)
Principal payments on notes payable-Shareholders (9,800)
Net cash provided by financing activities 300 3,200
NET DECREASE IN CASH (12,500) 3,400
CASH AND CASH EQUIVALENTS, beginning of
year 13,200 5,900
CASH AND CASH EQUIVALENTS, end of
quarter $ 700 $ 9,300
Supplemental disclosure of cash flow information:
Cash paid during the nine months ended for interest$ 200 $ 2,000
See notes to condensed financial statements
DENCOR ENERGY COST CONTROLS, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
A. The condensed Financial Statements included herein have been prepared by the
Company, without audit, pursuant to the rules and regulations of the
ecurities 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 Company believes that
the disclosures are adequate to make the information presented not misleading.
In the opinion of the Company, all accompanying unaudited condensed
Financial Statements contain all adjustments, which consist only of recurring
adjustments, necessary to present fairly the financial position as of
September 30, 1995 and 1994, and the results of operations for the nine
months then ended and changes in financial position for the nine months then
ended.
The results of operations for the nine-month periods ended September 30,
1995 and 1994, are not necessarily indicative of the results to be expected
for the full year. It is suggested that these Condensed Financial Statements
be read in conjunction with the Financial Statements and the notes therein
included in the Company's latest annual report on Form 10-KSB.
B. Long-Term Debt:
As of the end of Third Quarter, 1995, the Company had no long-term debt.
C. Common Stock:
During the Third Quarter, 1995, the Company sold no stock.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
NET SALES
Third Quarter sales of $149,000 were approximately 17% greater than sales for
the comparable period in 1994. The increase in sales was primarily the
result of an increase in sales of utility products sold through international
distribution.
COST AND EXPENSE
Cost of Products Sold as a percentage of net sales increased to 60.1% for the
third quarter of 1995 compared with 53.1% for the same period in the prior
year. The increase was due to the increased sales of utility products which
have a higher cost per unit of sales than other products.
DENCOR ENERGY COST CONTROLS, INC.
Selling expenses as a percentage of sales decreased to 3.9% for the third
quarter compared to 7.9% for the same period in the prior year. The decrease
was due to a decrease in travel.
General and Administrative expenses remained about the same as for the same
quarter in the prior year.
Research and Development expenses increased slightly compared to the same
quarter in the prior year due to increased development activity.
EARNINGS
The earnings for the third quarter were $800 compared to a loss of $2,100 for
the same period in the prior year. The increase in earnings was due to
increased sales.
LIQUIDITY
The Company's current ratio is 1.22 at the Quarter ended September 30, 1995.
Management believes the acid ratio (cash and accounts receivable divided by
current liabilities) of .44 is within the limits of reasonable liquidity.
PART II
OTHER INFORMATION
Items 1 through 6 would appear to require no answers according to the
instructions.
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.
DENCOR ENERGY COST CONTROLS, INC.
Registrant
By: Maynard L. Moe
President and Principal Accounting Officer
Date:November 8, 1995
