U.S. Securities and Exchange Commission
Washington, D.C. 20549
Form 1O-QSB
(Mark One)
|X| QUARTERLY REPORT UNDER SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended April 3, 1999
-------------------------------
|_| 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, New York 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: May 7, 1999 capital stock - $1 par
value - 598,307 outstanding shares.
<PAGE>
EICO ELECTRONIC INSTRUMENT CO., INC.
QUARTERLY REPORT ON FORM 10-QSB
FOR THE QUARTER ENDING APRIL 3, 1999
- INDEX -
Part I - Financial Information:
Item 1 - Financial Statements
Balance sheet - April 3, 1999 (unaudited)
Statement of operations - for the twenty-six weeks and thirteen weeks
ended April 3, 1999 and March 28, 1998 (unaudited)
Statement of cash flows - for the twenty-six weeks Ended April 3, 1999 and
March 28, 1998 (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 APRIL 3, 1999
(UNAUDITED)
ASSETS
Cash $ 32,369
Investment in U.S. Treasury money market funds 671,034
Prepaid expenses 22,073
Investment in U.S. Treasury bills (at
amortized cost, which approximates market) 3,189,368
Other assets 3,814
----------
TOTAL $3,918,658
==========
LIABILITIES
Accrued wages, taxes and other expenses $ 39,259
Income taxes payable 79,038
----------
Total liabilities 118,297
----------
STOCKHOLDERS' EQUITY
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 2,602,101
----------
Total 3,827,607
Less cost of 9,986 shares of capital stock
in treasury 27,246
----------
Total stockholders' equity 3,800,361
----------
TOTAL $3,918,658
==========
The attached notes are made a part hereof.
<PAGE>
EICO ELECTRONIC INSTRUMENT CO., INC.
STATEMENT OF OPERATIONS
(NOTES A AND B)
(UNAUDITED)
<TABLE>
<CAPTION>
Twenty-Six Weeks Ended Thirteen Weeks Ended
---------------------- ----------------------
April 3, March 28, April 3, March 28,
1999 1998 1999 1998
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Income:
Interest on mortgage $ 29,822 $ 161,188 $ 80,404
Interest on investments 84,312 25,000 44,060 12,449
Gain on sale of property 38,257 19,318
--------- --------- --------- ---------
Total 114,134 224,445 44,060 112,171
General and corporate expenses 123,066 102,118 78,153 55,488
--------- --------- --------- ---------
Earnings (loss) before income taxes (8,932) 122,327 (34,093) 56,683
Income tax provision (credit) (2,000) 55,000 (9,000) 27,000
--------- --------- --------- ---------
NET EARNINGS (LOSS) ($ 6,932) $ 67,327 $ (25,093) $ 29,683
========= ========= ========= =========
Net earnings (loss) per share $ (.01) $ .11 $ (.04) $ .05
========= ========= ========= =========
Number of shares used in computing
earnings per share 598,307 600,380 598,307 600,380
========= ========= ========= =========
Dividends declared per share None None None None
========= ========= ========= =========
</TABLE>
The attached notes are made a part thereof.
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)
Twenty-Six Weeks Ended
--------------------------
April 3, March 28,
1999 1998
----------- -----------
Cash flows from operating activities:
Cash paid to suppliers and employees $ (168,330) $ (80,411)
Interest received 105,821 183,727
Income taxes paid (1,352,185) (40,609)
Late fee penalty collected 155,517
----------- -----------
Net cash provided by (used in)
operating activities (1,259,177) 62,707
----------- -----------
Cash flows from investing activities:
Proceeds from sale of property -
collection of mortgage principal 3,974,124 38,257
Proceeds from redemption of U.S.
Treasury obligations 5,525,315 320,000
Investments in U.S. Treasury obligations (7,676,093) (389,618)
Investment in U.S. Treasury money
market funds (671,034)
----------- -----------
Net cash provided by (used in)
investing activities 1,152,312 (31,361)
----------- -----------
Cash flows (used in) financing activities -
dividends paid (120,076)
-----------
NET (DECREASE) IN CASH (106,865) (88,730)
Cash - beginning of period 139,234 190,027
----------- -----------
CASH - END OF PERIOD $ 32,369 $ 101,297
=========== ===========
Reconciliation of net earnings to net cash
provided by operating activities:
Net earnings (loss) $ (6,932) $ 67,327
Adjustments to reconcile net earnings (loss)
to net cash provided by (used in) operating
activities:
Gain on the sale of property (38,257)
Deferred income taxes 5,000
Decrease (increase) in:
Decrease in mortgage interest and
penalty receivable 155,517
Prepaid expenses (8,313) (2,461)
Other assets 1,600 1,599
Increase (decrease) in:
Accrued wages, taxes and other expenses (46,864) 20,108
Income taxes payable (1,354,185) 9,391
----------- -----------
Net cash provided by (used in)
operating activities $(1,259,177) $ 62,707
=========== ===========
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
October 3, 1998; 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 twenty-six weeks ended April 3, 1999
are not necessarily indicative of the results of operations for the year ending
October 2, 1999.
(Note C):
Earnings per share is based on the average number of shares outstanding
during each period, exclusive of treasury shares.
(Note D):
Income tax provision (credit) on the statement of operations comprise:
Twenty-Six Thirteen
Weeks Ended Weeks Ended
----------------------- -----------------------
April 3, March 28, April 3, March 28,
1999 1998 1999 1998
--------- --------- --------- ---------
Currently payable
(refundable):
Federal $ (1,000) $ 31,000 $ (4,000) $ 14,000
State and local (1,000) 19,000 (5,000) 10,000
Deferred:
Federal 3,000 1,000
State and local 2,000 2,000
--------- --------- --------- ---------
Total $ (2,000) $ 55,000 $ (9,000) $ 27,000
========= ========= ========= =========
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 E):
Cash Equivalents - For purposes of the statement of cash flows, the
Company considers all liquid short-term investments to be investing activities
and not cash equivalents.
<PAGE>
Item 2
EICO ELECTRONIC INSTRUMENT CO., INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The balance of the gain on the sale of property was recorded as of the
year ended October 3, 1998. While a gain was reflected in the prior year
quarter, no gain is reflected in the current year quarter.
Interest on mortgage in the current 26 week period is included up to the
mortgage collection date in October 1998, while the prior year includes interest
for the entire 26 week period. No interest is reflected in the quarter ended
April 3, 1999.
As a result of investing the proceeds from the mortgage receivable in the
current period, interest on investments increased to $84,312 in the current 26
week period from $25,000 in the prior year 26 week period and $44,060 in the
quarter ended April 3, 1999 from $12,449 in the prior year comparable quarter.
General and corporate expenses increased in the 26 weeks ended in 1999
over the same period in 1998, and in the quarter ended April 3, 1999 over both
the quarters ended March 28, 1998 and January 2, 1999 as a result in increased
compensation costs.
At April 3, 1999, the Company has cash and investments of approximately
$3,900,000.
In the April 11, 1999 notice of annual meeting of stockholders to be held
on May 28, 1999, the Company proposed to dissolve and liquidate. The Company has
no material commitments 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)
May 9, 1999 By /s/ Linda Ashley
-----------------------------------
Principal Financial Officer
May 9, 1999 By /s/ Gordon Katz
-----------------------------------
Secretary
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-02-1999
<PERIOD-START> OCT-04-1998
<PERIOD-END> APR-03-1999
<CASH> 32,369
<SECURITIES> 3,860,402
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 3,918,658
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 3,918,658
<CURRENT-LIABILITIES> 118,297
<BONDS> 0
0
0
<COMMON> 608,293
<OTHER-SE> 3,192,068
<TOTAL-LIABILITY-AND-EQUITY> 3,918,658
<SALES> 0
<TOTAL-REVENUES> 114,134
<CGS> 0
<TOTAL-COSTS> 123,066
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (8,932)
<INCOME-TAX> (2,000)
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (6,932)
<EPS-PRIMARY> (.01)
<EPS-DILUTED> 0
</TABLE>
