<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, 1996 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
1996 1996
--------------- ---------------
(unaudited) (note)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 299,079 $ 209,438
Trade accounts receivable,
less allowance of $113,000 1,781,506 2,087,215
Inventories:
Finished Goods 315,755 435,153
Work in Process 546,705 1,080,012
Parts & Materials 121,299 207,606
--------------- --------------
983,759 1,722,771
Prepaid Expenses 127,446 132,941
Deferred Income Tax Asset 20,000 20,000
---------------- ---------------
TOTAL CURRENT ASSETS 3,211,790 4,172,365
PROPERTY, PLANT AND
EQUIPMENT:
Land & Buildings 3,623,070 3,731,776
Equipment on Lease 284,217 282,176
Other Machinery and Equipment 7,474,350 7,748,327
---------------- ---------------
11,381,637 11,762,279
Less Allowance for depreciation 8,481,643 8,600,223
--------------- ---------------
2,899,994 3,162,056
Other assets 20,000 29,921
---------------- ---------------
$ 6,131,784 $ 7,364,342
================ ===============
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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
1996 1996
---------------- ---------------
(unaudited) (note)
LIABILITIES AND
STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable $ 350,000 $ 400,000
Accounts payable 797,100 1,480,823
Accrued expenses 826,341 714,433
Accrued warranty expenses 313,323 348,323
Deferred revenue 73,384 109,736
Other current liabilities 358,160 327,697
Current Portion - Long term debt 313,989 330,155
---------------- ---------------
TOTAL CURRENT LIABILITIES 3,032,297 3,711,167
DEFERRED INCOME TAXES 25,000 25,000
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 (deficit) ( 475,293) 83,176
Currency translation adjustment ( 72,098) ( 76,879)
---------------- ---------------
3,074,487 3,628,175
---------------- ---------------
$ 6,131,784 $ 7,364,342
================ ===============
<FN>
Note: The balance sheet at March 31, 1996 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, 1996 June 30, 1995
--------------- ---------------
<S> <C> <C>
REVENUES
Net sales and service revenues $ 2,268,424 $ 3,648,099
Income from leased equipment 178,984 184,189
Interest 1,545 2,199
--------------- ---------------
2,448,953 3,834,487
COSTS AND EXPENSES
Cost of products sold and
expenses of leasing
equipment 1,814,268 2,679,560
Selling, administrative and
general 1,136,570 1,117,769
Interest expense 23,378 36,928
Asset Write-down 130,260
Gain on sale of assets ( 114,312)
--------------- ---------------
2,990,164 3,834,257
--------------- ---------------
EARNINGS (LOSS) BEFORE
INCOME TAXES ( 541,211) 230
INCOME TAXES 17,258 7,493
--------------- ---------------
NET EARNINGS (LOSS) $ ( 558,469) $ ( 7,263)
=============== ===============
Net Earnings (loss) per share $ ( 0.26) $ ( 0.00)
=============== ===============
<FN>
Note: No dividends were declared during the periods presented.
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ALDEN ELECTRONICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<CAPTION>
Quarter ended Quarter ended
June 30, 1996 June 30, 1995
---------------- ---------------
<S> <C> <C>
OPERATING ACTIVITIES
Net (loss) $ ( 558,469) $ ( 7,263)
Adjustments to reconcile net
earnings to net cash provided by
operating activities;
Depreciation & amortization 154,286 248,595
Provision for doubtful accounts 1,500
Provision for asset writedown 130,260
Gain on disposal of assets ( 114,312)
Provision for severence obligations 220,684
Decrease/(increase) in operating assets
and (decrease)/increase in
liabilities:
Accounts receivable 283,708 24,796
Refundable income taxes 98,000
Inventories 14,932 678,355
Other current assets 5,651 ( 23,698)
Accounts payable, accrued
expenses and other
current liabilities ( 398,930) ( 718,925)
Deferred revenue ( 36,352) ( 39,250)
--------------- ----------------
NET CASH PROVIDED BY
(USED IN) OPERATING
ACTIVITIES ( 298,542) 262,110
INVESTING ACTIVITIES
Proceeds from sale of assets 555,385
Purchases of property, plant
and equipment ( 103,565) ( 289,720)
---------------- ----------------
NET CASH USED FOR
INVESTING ACTIVITIES 451,820 ( 289,720)
FINANCING ACTIVITIES
Principal payments on
long term debt ( 66,166) ( 24,168)
Sale of treasury stock 2,086
---------------- ----------------
NET CASH USED FOR
FINANCING ACTIVITIES ( 66,166) ( 22,082)
---------------- ----------------
Effect of exchange rate changes
on cash equivalents 2,529 2,222
---------------- ----------------
INCREASE (DECREASE) IN
CASH AND CASH
EQUIVALENTS 89,641 ( 47,470)
Cash and cash equivalents at beginning
of period 209,438 143,238
---------------- ----------------
CASH AND CASH
EQUIVALENTS AT
END OF PERIOD $ 299,079 $ 95,768
================ ================
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ALDEN ELECTRONICS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 1996
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, 1996 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, 1996.
NOTE B -- ASSET WRITEDOWN
The Company has entered into an agreement to sell a portion of its real
estate holdings. At June 30, 1996 the recorded value of such assets,
net of accumulated depreciation, exceeded the agreed sale price by $130,260.
A loss equal to this amount has been recorded for the quarter ended
June 30, 1996.
NOTE C -- GAIN ON DISPOSAL OF ASSETS
On June 11, 1996 the Company sold certain equipment and inventory relating to
a marine product line. Net proceeds from this transaction amounted to $555,385
and a gain of $114,312 was recognized during the quarter ended June 30, 1996.
NOTE D -- SEVERANCE PROVISION
Effective June 10, 1996, the Company entered into termination agreements
with two senior executives. Compensation and termination benefits amounting
to $220,684 were recognized to reflect the Company's obligations under these
agreements.
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ALDEN ELECTRONICS, INC. AND SUBSIDIARIES
EXHIBIT - COMPUTATION OF EARNINGS PER SHARE
<CAPTION>
Quarter Ended Quarter Ended
June 30, 1996 June 30, 1995
---------------- ---------------
<S> <C> <C>
Average number of shares of
Class A Common Stock 2,010,385 2,010,385
Effect of conversion of Class
B Common Stock 175,000 175,000
---------------- ---------------
Total 2,185,385 2,185,385
================ ===============
Net earnings (loss) $ ( 558,469) $ ( 7,263)
================ ===============
Net earnings per share $ (0.26) $ (0.00)
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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, 1996 were $2,448,000 compared to
$3,834,000 for the same period in the prior year. The overall decrease in
revenues is attributable to the effects of discontinuing certain marine
electronics products during the quarter ($770,000 less in the quarter ended
June 30, 1996 when compared to the prior year) and the reductions in sales of
weather display terminals amounting to approximately $500,000.
Gross profit, as a percent of sales, was 25.9% for the quarter ended
June 30, 1996 compared to 30.1% for the same period in the prior year. The
1995 margin was affected 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 $19,000
(or 0.8% of sales) greater for the quarter when compared to the same period
in the prior year. This increase reflects the provision for severence amounts
recorded as the result of termination agreements entered into with two senior
executives during the quarter amounting to $220,000 offseting reductions in
expenditures from staff reductions and other cost containment measures.
Cash and cash equivalents increased by $90,000 for the quarter ended June 30,
1996. This increase was primarily due from the sale of certain assets
relating to the production of marine electronics which resulted in proceeds of
$555,000 being offset by repayment of trade indebtness, investments in
property, plant and equipment and repayment of debt made in the normal course
of business.
The Company continues to implement cost containment measures with the
objective of maintaining revenues and reducing costs. Concurrently the
Company is reviewing strategic alternatives with respect to all of its
product lines and assets. The alternatives under consideration include
divestiture of some or all its product lines and liquidation of some or all
of its assets.
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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 23, 1996, 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
George P. Bauer
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, 1997.
ITEM 5 -- OTHER INFORMATION
Not applicable
ITEM 6 -- EXHIBITS AND REPORTS ON FORM 8-K
Exhibit 27. Financial Data Schedule.
On June 26, 1996, the Company filed a Report on Form 8-K regarding the
disposition of certain assets which occured on June 11, 1996.
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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 14, 1996
By:/s/ Arnold A. Kraft
______________________
Arnold A. Kraft
President and
Chief Executive Officer
(Principal Executive Officer)
Date: August 14, 1996
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-31-1997
<PERIOD-START> APR-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 299
<SECURITIES> 0
<RECEIVABLES> 1894
<ALLOWANCES> 113
<INVENTORY> 984
<CURRENT-ASSETS> 3212
<PP&E> 11382
<DEPRECIATION> 8482
<TOTAL-ASSETS> 6132
<CURRENT-LIABILITIES> 3033
<BONDS> 0
<COMMON> 2010
0
0
<OTHER-SE> 1065
<TOTAL-LIABILITY-AND-EQUITY> 9895
<SALES> 2447
<TOTAL-REVENUES> 2449
<CGS> 1814
<TOTAL-COSTS> 2990
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 17
<INCOME-PRETAX> (541)
<INCOME-TAX> 17
<INCOME-CONTINUING> (548)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (548)
<EPS-PRIMARY> (.26)
<EPS-DILUTED> (.26)
</TABLE>
