U.S. Securities and Exchange Commission
Washington, D.C. 20549
Form 10-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 31, 1997
____ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from _________to _________
Commission file number 1-8289
ASTRO COMMUNICATIONS, INC.
(Exact name of small business issuer as specified in its charter)
Oklahoma 73-0973183
(State or other jurisdiction (IRS Employer
of incorporation or organization) Identification No.)
c/o Steven A. Hirsh
2 North LaSalle Street - Suite 400
Chicago, IL 60602
(Address of principal executive offices)
312-621-0653
(Issuer's telephone number)
N/A
(Former name, former address and former fiscal year, if changed since
last year)
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 reports), and (2)
has been subject to such filing requirements for the past 90 days. YES X NO__
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDING 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 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 applicable date: 4,241,856.
PART 1. FINANCING INFORMATION
ITEM 1. FINANCIAL STATEMENTS
ASTRO COMMUNICATIONS, INC.
CONDENSED BALANCE SHEET
AT JANUARY 31, 1997 AND AT OCTOBER 31, 1996
January 31, October 31,
1997 1996
(UNAUDITED) (AUDITED)
___________ ___________
ASSETS
Current Assets
Cash and Cash Equivalents $ 451,724 $ 781,777
Marketable Securities at
Fair Value 811,332 741,332
Accounts Receivable 779,442 928,998
Prepaid Expenses and Other 41,306 26,275
Inventory 849,571 784,643
_________ _________
Total Current Assets 2,933,375 3,263,025
Other Assets
Cost in Excess of Fair Market
Value of Net Assets of Business
Acquired, net 2,363,865 2,380,829
Investments - Long Term at
Fair Value 1,200,000 800,000
Other 3,192 3,886
__________ _________
Total Other Assets 3,567,057 3,184,715
Property and Equipment, net 141,201 147,812
__________ __________
TOTAL ASSETS $ 6,641,633 $ 6,595,552
___________ ___________
___________ ___________
See Accompanying Notes to Condensed Financial Statements.
ASTRO COMMUNICATIONS, INC.
CONDENSED BALANCED SHEET
AT JANUARY 31, 1997 AND OCTOBER 31, 1996
January 31, October 31,
1997 1996
(UNAUDITED) (AUDITED)
___________ ___________
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current Liabilities
Accounts Payable and Accrued
Liabilities $ 585,683 $ 699,763
Due Former Unilux Shareholders 592,964 592,964
Income Tax Payable 59,839 58,719
__________ __________
Total Current Liabilities $1,238,486 $1,351,446
Stockholders' Equity
Common Stock (4,241,856 Outstandings) 71,818 71,818
Capital in Excess of Par Value 10,209,482 10,209,482
Accumulated Deficit (2,084.186) (2,243,227)
___________ ___________
8,197,114 8,038,073
Less: Treasury Stock at Cost (2,793,967) (2,793,967)
(2,939,944 shares at 10/31/96
2,939,944 shares at 1/31/97) ___________ ___________
Total Stockholders' Equity $5,403,147 $5,244,106
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $6,641,633 $6,595,552
__________ ___________
__________ ___________
See Accompanying Notes to Condensed Financial Statements.
<PAGE>
ASTRO COMMUNICATIONS, INC.
CONDENSED STATEMENTS OF OPERATIONS
FOR THE THREE MONTH PERIODS ENDED
JANUARY 31, 1997 AND JANUARY 31, 1996
January 31, January 31,
1997 1996
(UNAUDITED) (AUDITED)
___________ __________
Sales $ 930,911 $ 818,410
Cost of Goods Sold 244,035 259,733
_________ _________
Gross Profit 706,876 558,677
General and Administrative Expenses 581,584 493,769
_________ _________
Income from Operations 125,292 64,908
Investment and Other Income 47,300 95,378
_________ _________
Income Before Provision for Income Taxes 172,592 160,286
Provision for Income Taxes 13,551 6,453
__________ _________
Net Income $ 159,041 $ 53,833
Net Income per Weighted Average
Common Share $0.04 $0.04
Weighted Average Common Shares
Outstanding 4,241,856 4,300,000
Common Shares Outstanding at end
of Period 4,241,856 4,278,148
See Accompanying Notes to Condensed Financial Statements.
ASTRO COMMUNICATIONS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTH PERIODS ENDED
JANUARY 31, 1997 AND JANUARY 31, 1996
January 31, January 31,
1997 1996
(UNAUDITED) (UNAUDITED)
___________ ___________
Cash Flows from Operating Activities
Net Income $ 159,041 $ 153,833
__________ ___________
Adjustments to Reconcile Net Income
to Net Cash (provided by) Operating
Activities:
Depreciation and Amortization 45,343 37,547
Net Book Value of Rental Equipment
Sold 1,550 3,428
Gain on Sale of Investments (15,676) (5,392)
Unrealized Gain on Investments (3,125) (20,000)
(Increase) Decrease in Accounts
Receivable 44,906 92,109
(Increase) Decrease in Interest
Receivable (3,444) (5,771)
(Increase) Decrease in Inventory (82,095) (120,878)
(Increase) Decrease in Prepaid
Expenses (15,031) (3,671)
(Increase) Decrease in Security
Deposits --- (500)
(Increase) Decrease in Deferred Lease
Costs 694 695
Increase (Decrease) in Accounts
Payable 50,117 97,723
Increase (Decrease) in Accrued
Liabilities 164,197) (99,610)
Increase (Decrease) in Corporate
Taxes Payable 1,120 (82,000)
__________ ___________
Net Cash Provided By (Used in)
Operating Activities 19,203 47,513
___________ __________
Cash Flows from Investing Activities
Capital Expenditures (6,151) ---
Proceeds from Sale of Investments 209,892 806,094
Purchase of Investments (552,997) (537,500)
___________ ___________
Net Cash Provided by (Used in)
Investing Activities (349,256) 268,594
___________ ___________
Cash Flows from Financing Activities
Payments on Notes Payable --- (833)
Receipt of Loan --- 10,000
Repurchase of Treasury Stock --- (37,570)
Net Cash Provided by (Used in)
Financing Activities --- (28,403)
___________ ___________
Increase (Decrease) in Cash and
Cash Equivalents (330,053) 287,704
Cash and Cash Equivalents - Beginning 781,777 188,050
___________ ___________
Cash and Cash Equivalents - Ending $ 451,724 $ 475,754
Supplemental Disclosures of Cash Flow
Information
Cash Paid For:
Interest $ --- $ ---
Income Taxes 9,381 87,000
Non-Cash Investing and Financing Activities
During the three months ended January 31, 1997 and 1996, the Company
transferred $17,167 and $11,181 of Inventory to Rental Equipment.
ASTRO COMMUNICATIONS, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
1. In the opinion of the Company, the accompanying condensed financial
statements contain all adjustments (consisting only of normal recurring
accruals) necessary to present fairly the results of operations and changes
in financial position for the three months ended January 31, 1997.
2. The results of operations for the three months ended January 31, 1997 are
not necessarily indicative of the results expected for the full year.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONDENSED FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
FINANCIAL CONDITION
During the quarter the Company's cash and investment balances increased from
$2,323,109 to $2,463,056. The increase of approximately $140,000 was in line
with the Company's net income for the quarter which amounted to $159,000.
The Company intends to draw down about $200,000 from its $1,000,000 line of
credit to fund the April 1st, 1997, $588,000 payment due to former Unilux,
Inc. shareholders. The remaining $800,000 will be available should the
Company wish to increase its investments over the balance of the year. The
portfolio of marketable securities and unused bank lines are more than
adequate to fund any of the Company's foreseeable cash requirements.
RESULTS OF OPERATIONS
Unilux sales for the quarter increased from $819,000 to $931,000, a 14%
increase. Most of the increase came from the sales of Unilux Lith-O-Lights
which are used in the printing and converting industries. Profit margins
for the quarter were at an unusually high level and therefore gross profit
from operations increased 26% on a 14% sales increase. Operating profit
increased in the quarter from $65,000 to $125,000. Offsetting the increase
in operating profit was a decrease in investment income from $95,000 to
$47,000. The year earlier quarter benefited from the receipt of shares of
stock issued in conjunction with a bridge loan which was repaid. Combining
the investment and operating activities, overall net income before taxes
increased from $160,000 to $173,000 for the first quarter. Profits for the
balance of the year will continue to be heavily dependent on the sales of
large scale Unilux 1000 systems to the steel industry. At this time, it is
not possible to predict the level of activity for these products and,
therefore, the balance of the year may not compare favorably with last year.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
There are no material pending legal proceedings other than ordinary
litigation incidental to the business to which the Company or its
subsidiaries is a party.
ITEM 2. CHANGES IN SECURITIES - None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES - None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS - None
ITEM 5. OTHER INFORMATION - None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K - None
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.
ASTRO COMMUNICATIONS, INC.
(Registrant)
/s/ Steven A. Hirsch ________________
_________________________ Date
STEVEN A. HIRSH
Chairman and President
(Chief Executive Officer and
Chief Financial Officer)
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<NAME> ASTRO COMMUNICATIONS, INC.
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-END> JAN-31-1997
<CASH> 451,724
<SECURITIES> 811,332
<RECEIVABLES> 770,442
<ALLOWANCES> 0
<INVENTORY> 849,571
<CURRENT-ASSETS> 2,933,375
<PP&E> 1,145,038
<DEPRECIATION> 1,003,837
<TOTAL-ASSETS> 6,641,633
<CURRENT-LIABILITIES> 1,238,486
<BONDS> 0
0
0
<COMMON> 71,818
<OTHER-SE> 8,197,114
<TOTAL-LIABILITY-AND-EQUITY> 6,641,633
<SALES> 930,911
<TOTAL-REVENUES> 978,211
<CGS> 224,035
<TOTAL-COSTS> 805,619
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 172,592
<INCOME-TAX> 13,551
<INCOME-CONTINUING> 159,041
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 159,041
<EPS-PRIMARY> 0.04
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