<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter ended June 30, 1995 Commission file number 1-7404
ALDEN ELECTRONICS, INC.
(Exact name of registrant as specified in its charter)
Massachusetts 04-2156392
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
40 WASHINGTON STREET, WESTBOROUGH, MASSACHUSETTS 01581
(Address of principal executive offices)
Registrant's telephone number, including area code 508/366-8851
N/A
___________________________________________________________
Former name, former address and former fiscal year, if changed since last
report.
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months, and (2) has been subject to such
filing requirements for the past 90 days.
Yes ___X____ No ______
Number of shares outstanding of each of the issuer's classes of common stock
as of the close of the period covered by this report.
Class A Common Stock -- 2,010,385 shares
Class B Common Stock -- 25,000 shares
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PART I -- FINANCIAL INFORMATION
ITEM 1 -- FINANCIAL STATEMENTS
ALDEN ELECTRONICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
<CAPTION>
June 30 March 31
1995 1995
--------------- ---------------
(unaudited) (note)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 95,768 $ 143,238
Trade accounts receivable,
less allowance of $42,000 2,526,698 2,552,994
Refundable Income Taxes 98,000
Inventories:
Finished Goods 187,675 440,086
Work in Process 1,935,612 2,410,033
Parts & Materials 635,863 587,386
--------------- --------------
2,759,150 3,437,505
Prepaid Expenses 194,241 170,543
Deferred Income Tax Asset 53,000 53,000
---------------- ---------------
TOTAL CURRENT ASSETS 5,628,857 6,455,280
PROPERTY, PLANT AND
EQUIPMENT
Land & Buildings 3,715,654 3,715,654
Equipment on Lease 3,115,528 5,768,450
Other Machinery and Equipment 7,915,138 7,666,017
---------------- ---------------
14,746,320 17,150,121
Less Allowance for depreciation 10,523,456 12,979,112
--------------- ---------------
4,222,864 4,171,009
INTANGIBLE ASSETS, net of
accumulated amortization 43,144 53,874
---------------- ---------------
$ 9,894,865 $ 10,680,163
================ ===============
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PART I -- FINANCIAL INFORMATION
ITEM 1 -- FINANCIAL STATEMENTS
ALDEN ELECTRONICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30 March 31
1995 1995
---------------- ---------------
(unaudited) (note)
LIABILITIES AND
STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable $ 700,000 $ 700,000
Accounts payable 911,922 1,204,026
Accrued expenses 653,531 1,044,936
Deferred revenue 33,974 73,224
Other current liabilities 366,569 400,222
Current Portion - Long term debt 96,672 96,672
---------------- ---------------
TOTAL CURRENT LIABILITIES 2,762,668 3,519,080
Long Term Debt - Less Current
Portion 306,122 330,290
DEFERRED INCOME TAXES 103,000 103,000
STOCKHOLDER'S EQUITY
Class A Common Stock, par value
$1 per share-- authorized 2,500,000
shares, issued 2,010,385 2,010,385 2,010,385
Class B Common Stock, without par
value-- authorized
and issued 25,000 shares 75 75
Additional paid-in capital 1,611,418 1,611,418
Retained earnings 3,164,635 3,171,898
Treasury shares (2,086)
Currency translation adjustment (63,438) (63,897)
---------------- ---------------
6,723,075 6,727,793
---------------- ---------------
$ 9,894,865 $ 10,680,163
================ ===============
<FN>
Note: The balance sheet at March 31, 1995 was derived from the audited
financial statements at that date.
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ALDEN ELECTRONICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
<CAPTION>
Quarter ended Quarter ended
June 30, 1995 June 30, 1994
--------------- ---------------
<S> <C> <C>
REVENUES
Net sales and service revenues $ 3,648,099 $ 3,543,247
Income from leased equipment 184,189 274,071
Interest 2,199 3,749
--------------- ---------------
3,834,487 3,821,077
COSTS AND EXPENSES
Cost of products sold and
expenses of leasing
equipment 2,679,560 2,635,341
Selling, administrative and
general 1,117,769 1,234,804
Interest expense 36,928 13,924
--------------- ---------------
3,834,257 3,884,069
--------------- ---------------
EARNINGS (LOSS) BEFORE
INCOME TAXES 230 ( 62,992)
INCOME TAXES 7,493 9,771
--------------- ---------------
NET EARNINGS (LOSS) $ ( 7,263) $ ( 72,763)
=============== ===============
Net Earnings (loss) per share $ ( 0.00) $ ( 0.03)
=============== ===============
<FN>
Note: No dividends were declared during the periods presented.
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<TABLE>
ALDEN ELECTRONICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<CAPTION>
Quarter ended Quarter ended
June 30, 1995 June 30, 1994
---------------- ---------------
<S> <C> <C>
OPERATING ACTIVITIES
Net (loss) $ ( 7,263) $ ( 72,763)
Adjustments to reconcile net
earnings to net cash provided by
operating activities;
Depreciation & amortization 248,595 251,133
Provision for doubtful accounts 1,500
Decrease/(increase) in operating assets
and (decrease)/increase in
liabilities:
Accounts receivable 24,796 ( 13,085)
Refundable income taxes 98,000
Inventories 678,355 (630,653)
Other current assets ( 23,698) ( 41,561)
Accounts payable, accrued
expenses and other
current liabilities ( 717,162) ( 420,525)
Deferred revenue ( 39,250) 14,676
Foreign currency translation ( 1,763) 2,256
--------------- ----------------
NET CASH PROVIDED BY
(USED IN) OPERATING
ACTIVITIES 262,110 ( 910,522)
INVESTING ACTIVITIES
Purchases of property, plant
and equipment (289,720) (117,571)
---------------- ----------------
NET CASH USED FOR
INVESTING ACTIVITIES ( 289,720) (117,571)
FINANCING ACTIVITIES
Principal payments on
long term debt ( 24,168) ( 8,333)
Sale of treasury stock 2,086
---------------- ----------------
NET CASH USED FOR
FINANCING ACTIVITIES ( 22,082) ( 8,333)
---------------- ----------------
Effect of exchange rate changes
on cash equivalents 2,222 8,080
---------------- ----------------
INCREASE (DECREASE) IN
CASH AND CASH
EQUIVALENTS (47,470) (1,028,346)
Cash and cash equivalents at beginning
of period 143,238 1,440,225
---------------- ----------------
CASH AND CASH
EQUIVALENTS AT
END OF PERIOD $ 95,768 $ 411,879
================ ================
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ALDEN ELECTRONICS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 1995
NOTE A -- BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with the instructions to Form 10-Q and do not
include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion of
management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. The results
of operations for the three months ended June 30, 1995 are not necessarily
indicative of results to be expected for the full fiscal year. For further
information, refer to the consolidated financial statements and footnotes
included in the Company's annual report on Form 10-K for the year ended March
31, 1995.
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ALDEN ELECTRONICS, INC. AND SUBSIDIARIES
EXHIBIT - COMPUTATION OF EARNINGS PER SHARE
<CAPTION>
Quarter Ended Quarter Ended
June 30, 1995 June 30, 1994
---------------- ---------------
<S> <C> <C>
Average number of shares of
Class A Common Stock 2,010,385 2,010,385
Effest of conversion of Class
B Common Stock 175,000 175,000
---------------- ---------------
Total 2,185,385 2,185,385
================ ===============
Net earnings (loss) $ (7,263) $ (72,763)
================ ===============
Net earnings per share $ (0.00) $ (0.03)
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ALDEN ELECTRONICS, INC. AND SUBSIDIARIES
ITEM 2 -- MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Revenues for the quarter ended June 30, 1995 were $3,848,099 compared to
$3,821,077 for the same period in the prior year. The overall increase in
revenues is attributable to sales of weather display systems introduced late
in the prior fiscal year including the ALDEN WAFS terminal. The sales of
these terminals amounted to approximately $500,000 during the quarter. This
increase was partially offset by decreases in revenue from the sale of paper
products ($230,000), marine weather chart recorders ($130,000) and revenues
from the lease of equipment to governmental agencies of $90,000.
Gross profit, as a percent of sales, was 30.1% for the quarter ended
June 30, 1995 compared to 31.0% for the same period in the prior year. The
1995 margin was adversely affected by increased expenditures for product
development during the quarter and the decline in revenues from the lease of
equipment. These declines were offset by the recording of a benefit amounting
to approximately $223,000 from agreements reached with various suppliers of
components and services to the Company to offset costs of the Company's
December 19, 1994 recall of its SATFIND-406(tm) SURVIVAL EPIRB.
Selling, administrative and general expenses were approximately $117,000
(or 3.1% of sales)less for the quarter when compared to the same period in
the prior year due to staff reductions implemented in the last quarter of
prior fiscal year and reductions in advertising costs.
Cash and cash equivalents decreased by $47,000 for the quarter ended June 30,
1995. This decrease was primarily due to investments in property, plant and
equipment and repayment of debt made in the normal course of business.
Management believes that internally generated funds and its existing credit
facilities will be sufficent to satisfy its anticipated working capital and
capital needs for the remainder of the fiscal year.
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ALDEN ELECTRONICS, INC. AND SUBSIDIARIES
PART II -- OTHER INFORMATION
ITEMS 1- 3-- INCLUSIVE
Not Applicable
ITEM 4 -- SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
At the Deferred Annual Meeting of Stockholders, held on July 25, 1995, the
Company's Class B Common Stockholders unaminously voted to elect the following
individuals to its Board of Directors:
Elizabeth J. Alden
William L. Alden
Arnold A. Kraft
J. David Luening
The Class B Common Stockholders voted to elect Robert J. Wentworth as
Treasurer and Clerk.
The Class B Common Stockholders also approved the appointment of Ernst
& Young LLP as the independent auditors for the Company for the year ended
March 31, 1996.
ITEM 5 -- OTHER INFORMATION
Not applicable
ITEM 6 -- EXHIBITS AND REPORTS ON FORM 8-K
Exhibit 27. Financial Data Schedule.
The Company did not file any reports on Form 8-K during the quarter ended
June 30, 1995.
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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.
ALDEN ELECTRONICS, INC.
Date: August 10, 1995
By:/s/ Arnold A. Kraft
______________________
Arnold A. Kraft
President and
Chief Executive Officer
(Principal Executive Officer)
Date: August 10, 1995
By:/s/ Robert J. Wentworth
_____________________
Robert J. Wentworth
Treasurer
(Principal Financial Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-START> APR-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 96
<SECURITIES> 0
<RECEIVABLES> 2569
<ALLOWANCES> 42
<INVENTORY> 2759
<CURRENT-ASSETS> 5629
<PP&E> 14746
<DEPRECIATION> 10523
<TOTAL-ASSETS> 9895
<CURRENT-LIABILITIES> 2763
<BONDS> 306
<COMMON> 2010
0
0
<OTHER-SE> 4713
<TOTAL-LIABILITY-AND-EQUITY> 9895
<SALES> 3832
<TOTAL-REVENUES> 3834
<CGS> 2680
<TOTAL-COSTS> 3797
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 37
<INCOME-PRETAX> 0
<INCOME-TAX> 7
<INCOME-CONTINUING> (7)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (7)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
