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 January 2, 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, 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 29, 1999 capital stock - $1
par value - 598,307 shares outstanding.
<PAGE>
EICO ELECTRONIC INSTRUMENT CO., INC.
QUARTERLY REPORT ON FORM 10-QSB
FOR THE QUARTER ENDING JANUARY 2, 1999
- I N D E X -
Part I - Financial Information:
Item 1 - Financial Statements
Balance sheet - January 2, 1999 (unaudited)
Statement of operations - thirteen weeks ended
January 2, 1999 and December 27, 1997 (unaudited)
Statement of cash flows - thirteen weeks ended
January 2, 1999 and December 27, 1997 (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 JANUARY 2, 1999
(UNAUDITED)
ASSETS
Cash $ 91,761
Investment in U.S. Treasury money market funds 663,704
Prepaid expenses 18,896
Investment in U.S. Treasury bills (at
amortized cost, which approximates market) 3,191,590
Other assets 4,614
----------
TOTAL $3,970,565
==========
LIABILITIES
Accrued wages, taxes and other expenses $ 56,759
Income taxes payable 88,352
----------
Total liabilities 145,111
----------
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 2,627,194
----------
Total 3,852,700
Less cost of 9,986 shares of capital
stock in treasury 27,246
----------
Total stockholders' equity 3,825,454
----------
TOTAL $3,970,565
==========
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
------------------------
January 2, December 27,
1999 1997
---------- ------------
Income:
Interest on mortgage $ 29,822 $ 80,784
Interest on investments 40,252 12,551
Gain on sale of property 18,939
-------- --------
Total 70,074 112,274
General and corporate expenses 44,913 46,630
-------- --------
Earnings before income taxes 25,161 65,644
Income taxes 7,000 28,000
-------- --------
NET EARNINGS $ 18,161 $ 37,644
======== ========
Net earnings per share $ .03 $ .06
======== ========
Number of shares used in computing
earnings per share 598,307 600,380
======== ========
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
--------------------------
January 2, December 27,
1999 1997
---------- ------------
Cash flows from operating activities:
Cash paid to suppliers and employees $ (73,477) $ (38,622)
Interest received 64,938 95,619
Income taxes paid (1,351,821) (12,216)
Late fee penalty collected 155,517
----------- -----------
Net cash provided by (used in)
operating activities (1,204,893) 44,781
----------- -----------
Cash flows from investing activities:
Proceeds from sale of property -
collection of mortgage principal 3,974,124 18,939
Proceeds from redemptions of U.S.
Treasury obligations 2,333,725 320,000
Investments in U.S. Treasury
obligations (4,486,725) (282,448)
Investment in U.S. Treasury
money market funds (663,704)
----------- -----------
Net cash provided by
investing activities 1,157,420 56,491
----------- -----------
NET INCREASE (DECREASE) IN CASH (47,473) 101,272
Cash - beginning of year 139,234 190,027
----------- -----------
CASH - END OF YEAR $ 91,761 $ 291,299
=========== ===========
(Continued)
<PAGE>
EICO ELECTRONIC INSTRUMENT CO., INC.
STATEMENT OF CASH FLOWS
(UNAUDITED)
- Sheet 2 -
Thirteen Weeks Ended
--------------------------
January 2, December 27,
1999 1997
---------- ------------
Reconciliation of net earnings to net
cash provided by operating activities:
Net earnings $ 18,161 $ 37,644
Adjustments to reconcile net
earnings to net cash provided
by operating activities:
Gain on sale of property (18,939)
Deferred income taxes 2,000
Decrease in mortgage interest and
penalty receivable 155,517
Decrease (increase) in:
Prepaid expenses (5,136) 2,284
Other assets 800 800
Increase (decrease) in:
Accrued wages, taxes and other
expenses (29,364) 7,208
Income taxes payable (1,344,871) 13,784
----------- -----------
Net cash provided by (used in)
operating activities $(1,204,893) $ 44,781
=========== ===========
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 thirteen weeks ended January 2, 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 taxes on the statement of operations comprises:
Thirteen Weeks Ended
--------------------------
January 2, December 27,
1999 1997
---------- ------------
Currently payable:
Federal $3,000 $17,000
State and local 4,000 9,000
Deferred - federal 2,000
------ -------
Tota1 $7,000 $28,000
====== =======
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)
(Note E):
Cash Equivalents - For purposes of the statement of changes in funds, 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 quarter is included up to the mortgage
collection date in October 1998, while the prior year includes interest for the
entire quarter.
Interest on investments increased to $40,252 in the current quarter from
$12,551 in the prior year quarter as a result of investing the proceeds from the
mortgage receivable in the current period.
At January 2, 1999, the Company has cash and investments of $3,950,000.
The Company is currently evaluating its options for the future, including
the possibility of liquidation, and 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.
Feb. 10, 1999 /s/ Linda Ashley
--------------------------
Linda Ashley, President
Feb. 10, 1999 /s/ Gordon Katz
--------------------------
Gordon Katz, Secretary
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> OCT-2-1999
<PERIOD-START> OCT-4-1998
<PERIOD-END> JAN-2-1999
<CASH> 91,761
<SECURITIES> 3,855,294
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 3,970,565
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 3,970,565
<CURRENT-LIABILITIES> 145,111
<BONDS> 0
0
0
<COMMON> 608,293
<OTHER-SE> 3,217,161
<TOTAL-LIABILITY-AND-EQUITY> 3,970,565
<SALES> 0
<TOTAL-REVENUES> 70,074
<CGS> 0
<TOTAL-COSTS> 44,913
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 25,161
<INCOME-TAX> 7,000
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 18,661
<EPS-PRIMARY> .03
<EPS-DILUTED> 0
<FN>
<F1>
UNITED STATES TREASURY OBLIGATIONS
</FN>
</TABLE>
