<PAGE>
U.S. Securities and Exchange Commission
Washington, D.C. 20549
Form 10-QSB
(Mark One)
[x] QUARTERLY REPORT UNDER SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 30, 1995
[ ] TRANSITION REPORT UNDER SECTION 13 or 15(d) OF THE
EXCHANGE ACT
For the transition period from ________ to ________
Commission file number 0-122
Eico Electronic Instrument Co., Inc.
(Exact name of small business issuer as
specified in its charter)
New York 11-1524626
(State or other jurisdiction (IRS Employer Identification No.)
of incorporation or organization)
233 Broadway, Suite 1085, New York, N.Y. 10279
(Address of principal executive offices)
(212) 566-4995
(Issuer's telephone number)
(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
report(s), and (2) has been subject to such filing requirements for the
past 90 days. Yes X No ....
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required
to be filed by Section 12, 13 or 15(d) of the Exchange Act after the
distribution of securities under a plan confirmed by a court.
Yes .... 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: January 31, 1996
Capital stock - $1 par value - 600,385 shares outstanding at
January 31, 1996.
<PAGE>
EICO ELECTRONIC INSTRUMENT CO., INC.
QUARTERLY REPORT ON FORM 10-QSB
FOR THE QUARTER ENDING DECEMBER 30, 1995
- I N D E X -
Part I - Financial Information:
Item 1 - Financial Statements
Balance sheet - December 30, 1995 (unaudited)
Statement of operations - thirteen weeks ended
December 30, 1995 and December 31, 1994
(unaudited)
Statement of cash flows - thirteen weeks ended
December 30, 1995 and December 31, 1994
(unaudited)
Notes to Form 10-QSB (unaudited)
Item 2 - Management's Discussion and Analysis of
Financial Condition and Results of Operations
Signature Page
<PAGE>
Item 1. Financial Statements
EICO ELECTRONIC INSTRUMENT CO., INC.
BALANCE SHEET
AS AT DECEMBER 30, 1995
(UNAUDITED)
A S S E T S
Cash $ 206,239
Mortgage receivable (less unrecognized
gain on sale of property of $4,167,961) --
Prepaid expenses 18,656
Deferred income taxes 583,000
Investment in U.S. Treasury obligations
(at amortized cost; approximate
market $935,000) 930,000
Other assets 14,921
----------
T O T A L $1,752,816
==========
L I A B I L I T I E S
Accrued wages, taxes, and other expenses $ 49,509
Income taxes payable 60,652
Dividends payable 180,123
Escrow deposit payable (less cash in bank
account of $20,497) --
----------
Total liabilities 290,284
----------
S T O C K H O L D E R S' E Q U I T Y
Capital stock - $1 par value - authorized
1,000,000 shares; issued 608,293 shares
(including treasury shares) 608,293
Additional paid-in capital 617,213
Retained earnings 257,007
----------
T o t a l 1,482,513
Less cost of 7,908 shares capital
stock in treasury 19,981
----------
Total stockholders' equity 1,462,532
----------
T O T A L $1,752,816
==========
The attached notes are made a part hereof.
<PAGE>
EICO ELECTRONIC INSTRUMENT CO., INC.
STATEMENT OF OPERATIONS
(NOTES A AND B)
(UNAUDITED)
Thirteen Weeks Ended
--------------------------
December 30, December 31,
1995 1994
------------ ------------
Income:
Interest on mortgage $ 83,575
Interest on investments 14,538 $ 14,542
Gain on the sale of property
(less unrecognized gain of
$99,723 in 1994) 16,148
-------- --------
T o t a l 114,261 14,542
General and corporate expenses 50,547 48,248
-------- --------
Earnings (loss) before income taxes 63,714 (33,706)
Income tax provision (benefit) 28,000 (16,000)
-------- --------
NET EARNINGS (LOSS) $ 35,714 $(17,706)
======== ========
Net earnings (loss) per share $ .06 $(.03)
===== =====
Number of shares used in computing
earnings (loss) per share 600,385 600,450
======= =======
Dividends per share None None
==== ====
The attached notes are made a part hereof.
Management's discussion and analysis of financial
condition and results of operations is included
in item 2.
<PAGE>
EICO ELECTRONIC INSTRUMENT CO., INC.
STATEMENT OF CASH FLOWS
(UNAUDITED)
Thirteen Weeks Ended
--------------------------
December 30, December 31,
1995 1994
------------ ------------
Cash flows from operating activities:
Cash paid to suppliers and employees $(41,894) $(37,274)
Interest received 89,414 5,843
Income taxes paid (19,829) (53,020)
-------- --------
Net cash provided by (used in)
operating activities 27,691 (84,451)
-------- --------
Net cash provided by investing activities
proceeds from sale of property -
collection of mortgage interest
through date of cost recovery
and principal 16,148 99,723
--------
Cash flows (used in) financing activities -
payment for treasury stock (50)
-------- --------
NET INCREASE IN CASH 43,789 15,272
Cash - beginning of period 162,450 228,263
-------- --------
CASH - END OF PERIOD $206,239 $243,535
======== ========
(Continued)
<PAGE>
EICO ELECTRONIC INSTRUMENT CO., INC.
STATEMENT OF CASH FLOWS
(UNAUDITED)
- Sheet 2 -
Thirteen Weeks Ended
--------------------------
December 30, December 31,
1995 1994
------------ ------------
Reconciliation of net earnings (loss)
to net cash provided by (used in)
operating activities:
Net earnings (loss) $ 35,714 $(17,706)
Adjustments to reconcile net earnings
(loss) to net cash provided by
(used in) operating activities:
Gain on sale of property (16,148)
Deferred income taxes 2,000 (44,000)
Decrease (increase) in:
Prepaid expenses (6,011) (7,000)
Other assets and deposits 815 (725)
Increase (decrease) in:
Accrued wages, taxes and other
expenses 5,150 10,000
Income taxes payable 6,171 (25,020)
-------- --------
Net cash provided by
(used in) operating
activities $ 27,691 $(84,451)
======== ========
The attached notes are made a part hereof.
<PAGE>
EICO ELECTRONIC INSTRUMENT CO., INC.
NOTES TO FORM 10-QSB
(UNAUDITED)
(Note A):
The financial information contained in this Form 10-QSB
represents condensed financial data and, therefore, does not
include all footnote disclosures required to be included in
financial statements prepared in conformity with generally
accepted accounting principles. Such footnote information was
included in the Company's annual Form 10-KSB for the year ended
September 30, 1995; the condensed financial data included herein
should be read in conjunction with the annual report.
(Note B):
(1) In management's opinion, all necessary adjustments
have been made in order to present fairly the results for the
interim periods.
(2) The results of operations for the thirteen weeks ended
December 30, 1995 are not necessarily indicative of the results
of operations for the year ending September 28, 1996.
(Note C):
Earnings or loss per share is based on the average number
of shares outstanding during each period, exclusive of treasury
shares.
(Note D):
Income tax provision (benefit) on the statement of opera-
tions comprises:
Thirteen Weeks Ended
--------------------------
December 30, December 31,
1995 1994
------------ ------------
Currently payable:
Federal $ 17,000 $ 18,000
State and local 9,000 10,000
Deferred:
Federal 2,000 (27,500)
State and local (16,500)
-------- --------
Total provision (benefit) $ 28,000 $(16,000)
======== ========
Federal income taxes are computed at statutory rates,
including the effect of surtax exemptions.
(Continued)
<PAGE>
EICO ELECTRONIC INSTRUMENT CO., INC.
NOTES TO FORM 10-QSB
(UNAUDITED)
- Sheet 2 -
(Note D) (Continued):
Deferred income taxes result from reporting the sale of
property on the cost recovery method for financial accounting
purposes, and on the installment method for income tax purposes.
(Note E):
On June 25, 1993, the Company sold its property for
$5,000,000. The contract of sale required the payment of $750,000
by the purchasers at the closing and a first mortgage of $4,250,000
to be held by the Company. The mortgage principal with interest at
8% a year is due in 60 monthly payments of $33,241 beginning
September 1993, with a balloon payment of $4,000,617 due September
1998. For financial accounting purposes, the Company has recorded
the sale on the cost recovery method.
The sale comprises:
Sales price $5,000,000
Less real estate transfer taxes
and other closing costs 788,876
----------
B a l a n c e 4,211,124
Cost basis 535,219
----------
Gain on sale of property 3,675,905
Interest collected (unrecognized) to
September 30, 1995 544,651
Recognized gain to September 30, 1995 (36,447)
----------
Unrecognized gain on sale of property
at September 30, 1995 4,184,109
Period October 1, 1995 to December 30, 1995 -
recognized gain 16,148
----------
Unrecognized gain on sale of property
at December 30, 1995 $4,167,961
==========
<PAGE>
Item 2
EICO ELECTRONIC INSTRUMENT CO., INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
On June 25, 1993, the Company sold its real property in
Flushing for $5,000,000. The contract of sale required the
purchasers to pay $750,000 at the closing. In addition, a first
mortgage with a balance of $4,167,961 is held by the Company.
The mortgage principal, with interest at 8% a year, is payable in
60 monthly payments of $33,241 beginning September 1993, with a
balloon payment of $4,000,617 due September 1998. For financial
accounting purposes, the Company has recorded the sale on the
cost recovery method. Using this method, no profit is recognized
until cash payments by the buyers exceed the Company's cost basis
of the property plus selling expenses. This level of buyer pay-
ment occurred during the year ended September 30, 1995.
The $99,723 reflected as interest income on investment and
gain on sale of property in the thirteen weeks ended December 30,
1995 is the same amount received in the prior comparative period
but was previously reflected as a recovery of cost.
The Company has cash and investments in U.S. Treasury obli-
gations at December 30, 1995 of $1,136,239.
The Company has no formal material commitment for future
capital expenditures.
<PAGE>
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.
EICO ELECTRONIC INSTRUMENT CO., INC.
(Registrant)
Dated: 2/8/96 By /s/ Linda Ashley
----------------------------------------
Principal Financial Officer-Linda Ashley
Dated: 2/8/96 /s/ Gordon Katz
--------------------------------------
Secretary-Gordon Katz
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-28-1996
<PERIOD-START> OCT-01-1995
<PERIOD-END> DEC-30-1995
<CASH> 206,239
<SECURITIES> 930,000<F1>
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 224,895
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 1,752,816
<CURRENT-LIABILITIES> 290,284
<BONDS> 0
0
0
<COMMON> 608,293
<OTHER-SE> 854,239
<TOTAL-LIABILITY-AND-EQUITY> 1,752,816
<SALES> 0
<TOTAL-REVENUES> 114,261
<CGS> 0
<TOTAL-COSTS> 50,547
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 63,714
<INCOME-TAX> 28,000
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 35,714
<EPS-PRIMARY> .06
<EPS-DILUTED> 0
<FN>
<F1>
United States Treasury Obligations.
</TABLE>
