<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 September 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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<TABLE>
PART I -- FINANCIAL INFORMATION
ITEM 1 -- FINANCIAL STATEMENTS
ALDEN ELECTRONICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
<CAPTION>
September 30 March 31
1995 1995
--------------- ----------------
(unaudited) (note)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 26,673 $ 143,238
Trade accounts receivable,
less allowance of $42,000 2,687,404 2,552,994
Refundable Income Taxes 98,000
Inventories:
Finished Goods 269,747 440,086
Work in Process 1,822,730 2,410,033
Parts & Materials 531,612 587,386
--------------- ---------------
2,624,089 3,437,505
Prepaid Expenses 193,047 170,543
Deferred Income Tax Asset 53,000 53,000
---------------- ---------------
TOTAL CURRENT ASSETS 5,584,213 6,455,280
PROPERTY, PLANT AND
EQUIPMENT
Land & Buildings 3,720,601 3,715,654
Equipment on Lease 2,120,352 5,768,450
Other Machinery and Equipment 8,044,882 7,666,017
---------------- ----------------
13,885,835 17,150,121
Less Allowance for depreciation 9,692,648 12,979,112
--------------- ----------------
4,193,187 4,171,009
INTANGIBLE ASSETS, net of
accumulated amortization 31,965 53,874
---------------- ----------------
$ 9,809,365 $ 10,680,163
================ ================
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PART I -- FINANCIAL INFORMATION
ITEM 1 -- FINANCIAL STATEMENTS
ALDEN ELECTRONICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30 March 31
1995 1995
---------------- ---------------
(unaudited) (note)
LIABILITIES AND
STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable $ 500,000 $ 700,000
Accounts payable 1,386,228 1,204,026
Accrued expenses 665,006 1,044,936
Deferred revenue 93,604 73,224
Other current liabilities 344,884 400,222
Current Portion - Long term debt 96,672 96,672
---------------- ---------------
TOTAL CURRENT LIABILITIES 3,086,394 3,519,080
Long Term Debt - Less Current
Portion 281,954 330,290
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 2,780,573 3,171,898
Treasury shares (2,086)
Currency translation adjustment (64,434) (63,897)
---------------- ---------------
6,338,017 6,727,793
---------------- ---------------
$ 9,809,365 $ 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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<TABLE>
ALDEN ELECTRONICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
<CAPTION>
Six months ended Quarter Ended
September 30 September 30
---------------- ----------------
1995 1994 1995 1994
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
REVENUES
Net sales and
service revenues $ 6,915,619 $ 8,123,160 $ 3,267,520 $ 4,579,913
Income from leased
equipment 369,610 525,334 185,421 251,263
Interest income 3,241 18,312 1,042 14,553
------------ ------------ ------------ ------------
7,288,470 8,666,806 3,453,983 4,845,729
COSTS AND EXPENSES
Cost of products
sold and expenses
of leasing
equipment 5,414,299 5,979,832 2,734,739 3,344,491
Selling,
administrative
and general 2,162,813 2,948,913 1,045,044 1,714,109
Interest expense 76,812 52,739 39,884 38,815
------------ ------------ ------------ ------------
7,653,924 8,981,484 3,819,667 5,097,415
------------ ------------ ------------ ------------
EARNINGS (LOSS) BEFORE
INCOME TAXES ( 365,454) ( 314,678) ( 365,684) ( 251 686)
INCOME TAXES 25,871 16,905 18,378 7,134
------------ ------------ ------------ ------------
NET EARNINGS (LOSS) $ ( 391,325) $ ( 331,583) $ ( 384,062) $ ( 258,820)
============ ============ ============ ============
Net Earnings (loss)
per share $ ( 0.18) $ ( 0.15) $ ( 0.18) $ ( 0.12)
============ ============ ============ ============
<FN>
Note: No dividends were declared during the periods presented.
</TABLE>
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<TABLE>
ALDEN ELECTRONICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<CAPTION>
Six Months Ended
September 30
----------------
1995 1994
---------------- ---------------
<S> <C> <C>
OPERATING ACTIVITIES
Net (loss) $ ( 391,325) $ ( 331,583)
Adjustments to reconcile net
earnings to net cash provided by
operating activities;
Depreciation & amortization 523,237 501,802
Provision for doubtful accounts 6,000
Decrease/(increase) in operating assets
and (decrease)/increase in
liabilities:
Accounts receivable ( 140,410) ( 666,668)
Refundable income taxes 98,000
Inventories 632,790 (1,416,235)
Other current assets ( 22,504) ( 63,901)
Accounts payable, accrued
expenses and other
current liabilities ( 253,066) 295,884
Deferred revenue 20,380 30,570
Foreign currency translation ( 8,300) 320
-------------- ---------------
NET CASH PROVIDED BY
(USED IN) OPERATING
ACTIVITIES 464,802 (1,649,811)
INVESTING ACTIVITIES
Purchases of property, plant
and equipment ( 342,880) ( 293,057)
--------------- ---------------
NET CASH USED FOR
INVESTING ACTIVITIES ( 342,880) ( 293,057)
FINANCING ACTIVITIES
Principal payments on
long term debt ( 48,336) ( 16,389)
Short-Term Borrowings 1,000,000
Repayment of Notes Payable ( 200,000)
Sale of treasury stock 2,086
--------------- ---------------
NET CASH USED FOR
FINANCING ACTIVITIES ( 246,250) 983,611
--------------- ---------------
Effect of exchange rate changes
on cash equivalents 7,763 13,085
--------------- ---------------
INCREASE (DECREASE) IN
CASH AND CASH
EQUIVALENTS ( 116,565) ( 946,172)
Cash and cash equivalents at
beginning of period 143,238 1,440,225
--------------- ---------------
CASH AND CASH
EQUIVALENTS AT
END OF PERIOD $ 26,673 $ 494,053
=============== ===============
</TABLE>
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ALDEN ELECTRONICS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
September 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 period ended September 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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<TABLE>
ALDEN ELECTRONICS, INC. AND SUBSIDIARIES
EXHIBIT - COMPUTATION OF EARNINGS PER SHARE
<CAPTION>
Six Months Ended Quarter Ended
September 30 September 30
---------------- ----------------
1995 1994 1995 1994
------------ ----------- ------------ ------------
<S> <C> <C> <C> <C>
Average number of
shares of Class A
Common Stock 2,010,385 2,010,385 2,010,385 2,010,385
Effect of conversion
of Class
B Common Stock 175,000 175,000 175,000 175,000
------------ ------------ ------------ ------------
Total 2,185,385 2,185,385 2,185,385 2.185,385
============ ============ ============ ============
Net earnings (loss) $( 391,325) $( 331,583) $( 384,062) $( 258,820)
============ ============ ============ ============
Net earnings per share $ (0.18) $ (0.15) $ (0.18) $ (0.12)
============ ============ ============ ============
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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 September 30, 1995 were $3,453,983 compared to
$4,845,729 for the same period in the prior year. The overall decrease in
revenues is attributable to fewer large order sales of the Company's 9315CTP
Printer, continuing reductions in the sales of paper and parts for older
equipment and certain products discountinued during the last quarter of the
prior fiscal year. Sales of the 9315CTP Printer were approximately $900,000
less than in the same period in the prior year while the sales of paper and
parts on older equipment and discontinued products accounted for
approximately $800,000 of reduced revenues. These reductions were partially
offset by increased revenues from the sales of weather display systems,
which experienced an increase in sales of approximately $500,000
over the same period in the prior year.
Gross profit, as a percent of sales, was 21.8% for the quarter ended
September 30, 1995 compared to 31.0% for the same period in the prior year. The
1995 margin was adversely affected by the decrease in sales of the 9315CTP
Printer, greater than anticipated costs to produce new products during their
introductory period and the continuing decline in revenues from leased
equipment.
Selling, administrative and general expenses were approximately $670,000
less for the quarter when compared to the same period in the prior year due
to cost containment measures, reductions in certain direct selling expenses
and new product promotional costs incurred in the prior fiscal year, which
did not occur in the current period.
Revenues for the six months ended September 30, 1995 were $7,288,470 compared
to $8,666,806 for the same period in the prior year. The overall decrease in
revenues is attributable to fewer large order sales of the Company's
9315CTP Printer, continuing reductions in the sales of paper and parts for
older equipment and certain products discountinued during the last quarter
of the prior fiscal year. Sales of the 9315CTP Printer were approximately
$800,000 less than for the same period in the prior year while the sales of
paper and parts on older and discontinued products accounted for
approximately $1,200,000 of reduced sales. These reductions were partially
offset by increased revenues from the sales of weather display systems,
which experienced an increase in sales of approximately $1,000,000
over the same period in the prior year.
Gross profit, as a percent of sales, was 25.7% for the six months compared to
31.0% for the same period in the prior year. The 1995 margin was adversely
affected by the decreased sales of 9315CTP Printers, greater than anticipated
costs to produce new products during their introductory period and the
continuing decline in revenues from leased equipment.
Selling, administrative and general expenses were approximately $786,000
less for the six months ended September 30, 1995 when compared to the same
period in the prior year due to cost containment measures, reductions in
certain direct selling expenses and new product promotional costs
incurred in the prior fiscal year, which did not occur in the current period.
Cash and cash equivalents decreased by $117,000 for the six months ended
September 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 exceeding cash provided by operating activities. Management
believes that internally generated funds 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
Effective October 23, 1995, the Class B Stockholders voted by unanimous
written consent to enlarge the Board of Directors from four to five members
and to elect George P. Bauer as a Director of the Company.
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
September 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: November 3, 1995
By:/s/ Arnold A. Kraft
______________________
Arnold A. Kraft
President and
Chief Executive Officer
(Principal Executive Officer)
Date: November 3, 1995
By:/s/ Robert J. Wentworth
_____________________
Robert J. Wentworth
Treasurer
(Principal Financial Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-START> APR-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 27
<SECURITIES> 0
<RECEIVABLES> 2729
<ALLOWANCES> 42
<INVENTORY> 2624
<CURRENT-ASSETS> 5584
<PP&E> 13886
<DEPRECIATION> 9683
<TOTAL-ASSETS> 9809
<CURRENT-LIABILITIES> 3086
<BONDS> 282
<COMMON> 2010
0
0
<OTHER-SE> 4328
<TOTAL-LIABILITY-AND-EQUITY> 9809
<SALES> 7285
<TOTAL-REVENUES> 7288
<CGS> 5414
<TOTAL-COSTS> 7577
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 77
<INCOME-PRETAX> 0
<INCOME-TAX> 26
<INCOME-CONTINUING> (391)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (391)
<EPS-PRIMARY> (0.18)
<EPS-DILUTED> (0.18)
</TABLE>
