U.S. Securities and Exchange Commission
Washington, D.C. 20549
Form 1O-QSB
(Mark One)
|_| QUARTERLY REPORT UNDER SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended January 1, 2000
|_| 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)
853 Broadway, Suite 2011, New York, N.Y. 10003
------------------------------------------------
(Address of principal executive offices)
(646) 654-1464
------------------
(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: February 4, 2000 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 1, 2000
- INDEX-
Part I- Financial Information:
Item 1 - Financial Statements
Balance sheet - January 1, 2000 (unaudited)
Statement of operations - thirteen weeks ended January 1, 2000 and
January 2, 1999 (unaudited)
Statement of cash flows - thirteen weeks ended January 1, 2000 and
January 2, 1999 (unaudited)
Notes to Form l0-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 1, 2000
(UNAUDITED)
ASSETS
Cash $ 123,809
Accrued interest receivable 11,006
Investment in U.S. Treasury bills (at
amortized cost, which approximates market) 3,793,565
----------
TOTAL 3,928,380
==========
LIABILITIES
Accrued wages, taxes and other expenses $ 41,092
Income taxes payable 73,984
Liquidating distribution payable 3,111,196
----------
Total liabilities 3,226,272
----------
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 104,932
Retained earnings 16,129
----------
Tota1 729,354
Less cost of 9,986 shares of capital
stock in treasury 27,246
----------
Total stockholders' equity 702,108
----------
TOTAL $3,928,380
==========
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 1, January 2,
2000 1999
-------- --------
Income:
Interest on mortgage $ 29,822
Interest on investments $ 44,690 40,252
-------- --------
Tota1 44,690 70,074
General and corporate expenses 23,561 44,913
-------- --------
Earnings before income taxes 21,129 25,161
Income taxes 5,000 7,000
-------- --------
NET EARNINGS $ 16,129 $ 18,161
-------- --------
Net earnings per share $ .03 $ .03
-------- --------
Number of shares used in computing
earnings per share 598,307 598,307
======== ========
Liquidating distributions per share 5.20 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 1, January 2,
2000 1999
----------- -----------
Cash flows from operating activities:
Cash paid to suppliers and employees $ (20,555) $ (73,477)
Interest received 53,982 64,938
Income taxes paid (6,054) (1,351,821)
Late fee penalty collected 155, 517
----------- -----------
Net cash provided by (used in)
operating activities 27,373 (1,204,893)
----------- -----------
Cash flows from investing activities:
Proceeds from sale of property -
collection of mortgage principal 3,974,124
Proceeds from redemptions of U.S.
Treasury obligations 3,752,507 2,333,725
Investments in U.S. Treasury
obligations (3,793,565) (4,486,725)
Investment in U.S. Treasury
money market funds (663,704)
----------- -----------
Net cash provided by (used in)
investing activities (41,058) 1,157,420
----------- -----------
NET (DECREASE) IN CASH (13,685) (47,473)
Cash - beginning of period 137,494 139,234
----------- -----------
CASH - END OF PERIOD $ 123,809 $ 91,761
=========== ===========
(Continued)
<PAGE>
EICO ELECTRONIC INSTRUMENT CO., INC.
STATEMENT OF CASH FLOWS
(UNAUDITED)
- Sheet 2 -
Thirteen Weeks Ended
---------------------------
January 1, January 2,
2000 1999
----------- -----------
Reconciliation of net earnings to net
cash provided by (used in) operating
activities:
Net earnings $ 16,129 $ 18,161
Adjustments to reconcile net earnings to net
cash provided by (used in)
operating activities:
Decrease (increase) in:
Mortgage interest and penalty
receivable 155,517
Accrued interest receivable 9,292 (5,136)
Other assets 800
Increase (decrease) in:
Accrued taxes and other expenses 3,006 (29,364)
Income taxes payable (1,054) (1,344,871)
----------- -----------
Net cash provided by (used in)
operating activities $ 27,373 $(1,204,893)
=========== ===========
The attached notes are made a part hereof.
<PAGE>
EICO ELECTRONIC INSTRUMENT CO., INC.
NOTES TO FORM 1O-QSB
(UNAUDITED)
(Note A):
The financial information contained in this Form l0-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 l0-KSB for the year ended
October 2, 1999; 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 1, 2000
are not necessarily indicative of the results of operations for the year ending
September 30, 2000.
(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 1, January 2,
2000 1999
------ ------
Currently payable:
Federal $3,000 $3,000
State and local 2,000 4,000
------ ------
Total $5,000 $7,000
------ ------
Federal income taxes are computed at statutory rates, including the effect
of surtax exemptions.
(Continued)
<PAGE>
EICO ELECTRONIC INSTRUMENT CO., INC.
NOTES TO FORM l0-QSB
(UNAUDITED)
- Sheet 2 -
(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.
(Note F):
Stockholders' equity comprises the following:
<TABLE>
<CAPTION>
Balance Balance
October 2, Liquidating Net January 1,
1999 Distributions Earnings 2000
---- ------------- ----------- -----------
<S> <C> <C> <C> <C>
Capital stock $ 608,293 $ 608,293
Additional paid-in
capital 617,213 $ (512,281) 104,932
Retained earnings 2,598,915 (2,598,915) $ 16,129 16,129
Treasury stock (27,246) (27,246)
----------- ----------- ----------- -----------
Tota1 $ 3,797,175 $ 3,111,196 $ 16,129 $ 702,108
=========== =========== =========== ===========
</TABLE>
On May 28, 1999, the shareholders approved a plan to liquidate the
Company. In furtherance of such plan of liquidation, on December 1, 1999, the
Company's Board of Directors authorized the declaration of a partial liquidating
distribution of $5.20 per share (approximately $3,111,000) payable on or about
January 12, 2000 to shareholders of record of the Company at the close of
business on December 20, 1999.
The excess of the liquidating distribution over the retained earnings at
October 2, 1999 was charged to additional paid-in capital.
<PAGE>
Item 2
EICO ELECTRONIC INSTRUMENT CO., INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Interest on mortgage in the prior quarter was included up to the final
mortgage collection date in October 1998.
Interest on investments increased to $44,690 in the current quarter from
$40,252 in the prior year quarter as a result of higher investment levels.
General and corporate expenses declined to $23,561 in the current quarter
from $44,913 in the prior year quarter primarily as a result of decreases in
compensation, occupancy and general corporate costs.
At January 1, 2000, the Company has cash and liquid assets of $3,928,380.
On May 28, 1999, the shareholders approved a plan to liquidate the
Company. In furtherance of such plan of liquidation, on December 1, 1999, the
Company's Board of Directors authorized the declaration of a partial liquidating
distribution of $5.20 per share (approximately $3,111,000) payable on or about
January 12, 2000 to shareholders of record of the Company at the close of
business on December 20, 1999. The Company will retain liquid assets in an
amount deemed reasonable by its Board of Directors for purposes of settling the
affairs of the Company, including the payment of any contingent claims, whether
or not previously asserted against the Company. It is expected that the Company
will distribute all remaining assets of the Company prior to December 31, 2002.
<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)
February 4, 2000 By /s/ Linda Ashley
--------------------------------------
Linda Ashley
Principal Financial Officer
February 4, 2000 By /s/ Gordon Katz
--------------------------------------
Gordon Katz
Secretary
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-2000
<PERIOD-START> OCT-02-1999
<PERIOD-END> JAN-01-2000
<CASH> 123,809
<SECURITIES> 3,793,565
<RECEIVABLES> 11,006
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 3,928,380
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 3,910,299
<CURRENT-LIABILITIES> 113,124
<BONDS> 0
0
0
<COMMON> 608,293
<OTHER-SE> 93,815
<TOTAL-LIABILITY-AND-EQUITY> 3,928,380
<SALES> 0
<TOTAL-REVENUES> 44,690
<CGS> 0
<TOTAL-COSTS> 23,561
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 21,129
<INCOME-TAX> 5,000
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 16,129
<EPS-BASIC> .03
<EPS-DILUTED> 0
</TABLE>
