<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended December 31, 1996
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission File Number 0-10068
-------
ICO, INC.
---------------------------------------------------
(Exact name of registrant as specified in its charter)
Texas 75-1619554
- ----------------------------- ------------------------------------
(State of incorporation) (IRS Employer Identification Number)
11490 Westheimer, Suite 1000, Houston, Texas 77077
- -------------------------------------------- ------------
(Address of principal executive offices) (Zip Code)
(281) 721-4200
------------------
(Telephone Number)
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 (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
--- ---
Common stock, without par value: 20,900,678 shares
outstanding as of February 13, 1997
<PAGE> 2
ICO, INC.
INDEX TO QUARTERLY REPORT FORM 10-Q
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION PAGE
<S> <C>
Item 1. Financial Statements
Consolidated Balance Sheets as of December 31, 1996 and
September 30, 1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Consolidated Statements of Operations for the Three
Months Ended December 31, 1996 and 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Consolidated Statements of Cash Flows for the Three
Months Ended December 31, 1996 and 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
PART II. OTHER INFORMATION
Item 1. Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -
Item 2. Changes in Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -
Item 3. Defaults upon Senior Securities
(no response required) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -
Item 4. Submission of Matters to a Vote of Security Holders . . . . . . . . . . . . . . . . . . . . . . 11
Item 5. Other Information (no response required) . . . . . . . . . . . . . . . . . . . . . . . . . . . . -
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
</TABLE>
The accompanying notes are an integral part of these financial statements.
2
<PAGE> 3
ICO, INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
<TABLE>
<CAPTION>
DECEMBER 31, SEPTEMBER 30,
ASSETS 1996 1996
- ------ ------------- -------------
<S> <C> <C>
Current assets:
Cash and equivalents 9,187,000 $ 13,414,000
Trade receivables (less allowance for doubtful accounts of
$598,000 and $972,000, respectively) 28,365,000 25,279,000
Inventories 12,435,000 7,556,000
Income tax receivable -- 16,000
Deferred tax asset 4,294,000 4,052,000
Prepaid expenses and other 2,854,000 3,023,000
------------- -------------
Total current assets 57,135,000 53,340,000
------------- -------------
Property, plant and equipment, at cost 133,134,000 126,170,000
Less - accumulated depreciation and amortization (55,850,000) (53,585,000)
------------- -------------
77,284,000 72,585,000
Other assets:
Goodwill (less accumulated amortization of
$4,241,000 and $4,039,000, respectively) 34,833,000 29,915,000
Investment in joint ventures 4,622,000 4,619,000
Other 2,981,000 2,932,000
------------- -------------
$ 176,855,000 $ 163,391,000
============= =============
L I A B I L I T I E S A N D S T O C K H O L D E R S' E Q U I T Y
- ---------------------------------------------------------------------
Current liabilities:
Short term borrowings and current portion of long-term debt $ 4,772,000 $ 3,880,000
Accounts payable 10,402,000 8,538,000
Accrued insurance 1,547,000 1,613,000
Accrued salaries and wages 1,125,000 2,001,000
Accrued litigation costs 2,063,000 2,071,000
Dividends payable 1,589,000 --
Income taxes payable 974,000 --
Accrued expenses 6,998,000 5,355,000
------------- -------------
Total current liabilities 29,470,000 23,458,000
Deferred income taxes 2,014,000 1,648,000
Long-term liabilities 2,366,000 2,269,000
Long-term debt, net of current portion 16,445,000 15,422,000
------------- ------------
Total liabilities 50,295,000 42,797,000
------------- ------------
Stockholders' equity:
Preferred stock, without par value - 500,000 shares authorized;
322,500 shares issued and outstanding with a liquidation
preference of $32,250,000 13,000 13,000
Common Stock, without par value - 50,000,000 shares authorized;
20,900,678 and 19,682,494 shares issued and outstanding,
respectively 36,067,000 35,822,000
Additional paid-in capital 107,810,000 102,429,000
Cumulative translation adjustment 114,000 32,000
Accumulated deficit (17,444,000) (17,702,000)
------------- -------------
126,560,000 120,594,000
------------- -------------
Commitments and contingencies
$ 176,855,000 $ 163,391,000
============= =============
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE> 4
ICO, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED DECEMBER 31,
---------------------------------
1996 1995
------------ ------------
<S> <C> <C>
Revenues:
Oilfield sales and services $ 22,747,000 $ 21,733,000
Petrochemical processing sales and services 13,756,000 --
------------ ------------
Total net revenues 36,503,000 21,733,000
------------ ------------
Cost and expenses:
Cost of sales and services 24,239,000 15,145,000
Selling, general and administrative 6,873,000 4,054,000
Depreciation and amortization 2,500,000 1,339,000
------------ ------------
33,612,000 20,538,000
------------ ------------
Operating income 2,891,000 1,195,000
------------ ------------
Other income and expense:
Interest income 180,000 397,000
Interest expense (379,000) (21,000)
Equity in income of joint ventures 19,000 --
Gain on sale of fixed assets 18,000 18,000
Other 25,000 --
------------ ------------
(137,000) 394,000
------------ ------------
Income before taxes 2,754,000 1,589,000
Provision for income taxes 907,000 89,000
------------ ------------
Net income 1,847,000 1,500,000
============ ============
Earnings applicable to common and
common equivalent shares $ .07 $ .11
------------ ------------
Weighted average common and common
equivalent shares outstanding 19,976,733 8,908,797
============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE> 5
ICO, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED DECEMBER 31,
---------------------------------
1996 1995
----------- -----------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 1,847,000 $ 1,500,000
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 2,500,000 1,339,000
Gain on disposition of property, plant, and equipment (18,000) (18,000)
Equity in income of joint ventures (19,000) --
Changes in assets and liabilities, net of the effects
of business acquisitions:
Receivables 1,531,000 1,872,000
Inventories (2,050,000) (348,000)
Prepaid expenses and other 1,293,000 (863,000)
Deferred taxes (244,000) --
Accounts payable (602,000) 1,596,000
Accrued expenses (610,000) (2,505,000)
------------ ------------
Total adjustments 1,781,000 1,073,000
------------ ------------
Net cash provided by operating activities 3,628,000 2,573,000
------------ ------------
Cash flows from investing activities:
Capital expenditures (1,590,000) (2,264,000)
Acquisitions, net of cash acquired (5,731,000) (11,000)
Dispositions of property, plant and equipment 43,000 24,000
------------ ------------
Net cash used for investing activities (7,278,000) (2,251,000)
------------ ------------
Cash flows from financing activities:
Net proceeds from sale of stock 234,000 195,000
Payment of dividend on preferred stock -- (544,000)
Payment of dividend on common stock -- (447,000)
Additional debt 212,000 --
Reductions of debt (1,023,000) (25,000)
------------ ------------
Net cash used for financing activities (577,000) (821,000)
------------ ------------
Net decrease in cash and equivalents (4,227,000) (499,000)
Cash and equivalents at beginning of period 13,414,000 24,991,000
------------ ------------
Cash and equivalents at end of period $ 9,187,000 $ 24,492,000
============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE> 6
<TABLE>
<CAPTION>
THREE MONTHS ENDED DECEMBER 31,
------------------------------------
1996 1995
------------------------------------
<S> <C> <C>
Supplemental disclosures of cash flow information:
Cash received (paid) during the period for:
Interest received $ 180,000 $ 397,000
Interest paid (412,000) (21,000)
Income taxes paid (162,000) (1,039,000)
</TABLE>
Non-cash investing and financing activities:
Following is a schedule of assets acquired, liabilities assumed or incurred,
and common stock issued in conjunction with the acquisition of Bayshore
Industrial, Inc.:
<TABLE>
<CAPTION>
1996
--------------
<S> <C>
Trade receivables $ 4,646,000
Related party receivables 705,000
Inventories 2,839,000
Prepaid expenses and other assets 501,000
Property, plant and equipment 5,074,000
Goodwill 5,098,000
Accounts payable (2,436,000)
Accrued liabilities (2,340,000)
Deferred tax liability (348,000)
Long term debt (2,616,000)
Common stock issued (5,392,000)
------------
Cash paid, net of cash acquired $ 5,731,000
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE> 7
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1. BASIS OF FINANCIAL STATEMENTS
The accompanying unaudited consolidated financial statements have been prepared
in accordance with Rule 10-01 of Regulation S-X, "Interim Financial
Statements," and accordingly do not include all information and footnotes
required under generally accepted accounting principles for complete financial
statements. The financial statements have been prepared in conformity with the
accounting principles and practices as disclosed in the Annual Report on Form
10-K for the year ended September 30, 1996 for ICO, Inc. (the "Company"). In
the opinion of management, these interim financial statements contain all
adjustments (consisting only of normal recurring adjustments) necessary for a
fair presentation of the Company's financial position as of December 31, 1996,
the results of its operations for the three months ended December 31, 1996 and
1995 and the changes in its cash position for the three months ended December
31, 1996 and 1995. Results of operations for the three month period ended
December 31, 1996 are not necessarily indicative of the results that may be
expected for the year ending September 30, 1997. For additional information,
refer to the consolidated financial statements and footnotes included in the
Company's Annual Report on Form 10-K for the year ended September 30, 1996.
NOTE 2. EARNINGS (LOSS) PER SHARE AND STOCKHOLDERS' EQUITY
Earnings per share is based on earnings applicable to common shareholders and
is calculated using the weighted-average number of common shares outstanding.
At December 31, 1996 and 1995, outstanding options and warrants did not have a
materially dilutive effect.
During December 1996, the Company acquired Bayshore Industrial, Inc.
("Bayshore") located in LaPorte, Texas for approximately $6,400,000 in cash and
1,171,566 shares of ICO common stock, subject to certain working capital
adjustments to be made within ninety days of the purchase. Bayshore is a
provider of concentrates and compounds to resin producers in the United States.
The Company will account for this acquisition under the purchase method of
accounting.
During fiscal year 1996, the Company acquired Rainbow Inspection Company of
Mississippi, Inc. ("Rainbow"; in March 1996), Wedco Technology, Inc. ("Wedco",
in April 1996), and Polymer Service, Inc. and Polymer Service of Indiana, Inc.
(collectively referred to as "PSI", in July 1996). The 1996 acquisitions were
accounted for under the purchase method of accounting.
The following unaudited pro forma information assumes the Bayshore, PSI and
Wedco acquisitions occurred as of the beginning of the period presented. The
Rainbow acquisition has been excluded as it is considered immaterial.
<TABLE>
<CAPTION>
THREE MONTHS ENDED DECEMBER 31,
1996 1995
------------ ------------
<S> <C> <C>
Revenues $ 44,613,000 $ 37,118,000
Net income 2,082,000 1,388,000
Net income per common and
common equivalent share .07 .04
</TABLE>
7
<PAGE> 8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
This material contains "Forward-Looking Statements" within the meaning of
section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934 that involve substantial risks and uncertainties. When
words such as "anticipate", "believe", "estimate", intend", "expect", "plan"
and similar expressions are used, they are intended to identify the statements
as forward-looking. Actual results, performance or achievements can differ
materially from results suggested by these forward-looking statements.
Liquidity and Capital Resources
Cash and cash equivalents decreased $4,227,000 during the first quarter to
$9,187,000 from $13,414,000 at September 30, 1996. This change resulted from
cash generated by operating activities offset by cash used for investing and
financing activities, discussed below.
For the three months ended December 31, 1996 cash provided by operating
activities increased to $3,628,000 compared to $2,573,000 for the quarter
ended December 31, 1995. The increase is primarily due to higher net income
and depreciation and amortization expense offset by various changes in working
capital accounts. The Company had working capital of $27,665,000 at December
31, 1996.
Capital expenditures totaled $1,590,000 during the quarter excluding property,
plant and equipment of $5,074,000 acquired with the acquisition of Bayshore.
$654,000 of the capital expenditures related to the oilfield services segment
and the remaining related to the petrochemical processing business. The
expenditures were primarily incurred to enhance existing facilities. For the
remainder of fiscal 1997, capital expenditures are expected to be
approximately $10,500,000 and are expected to be financed through cash
generated from operations and existing cash. The Company used $5,731,000 in
cash, net of cash acquired, to purchase Bayshore.
Cash flows used for financing activities decreased to $577,000 during the first
quarter of fiscal year 1997 compared to $821,000 during the first quarter of
1996. The decrease is primarily due to paying the first quarter 1997 dividends
on common and preferred stock on January 2, 1997, offset by increased debt
repayments.
In order to decrease fixed costs and increase economies of scale, during the
fourth quarter of 1996, management determined that three petrochemical grinding
plants should be closed. The decision to consolidate was driven by the
redundancy of other Company facilities performing identical services in the
same area, in part due to the acquisition of PSI in July 1996. The Company
anticipates that future expenses relating to the plant closures will not be
material. These plans should have the effect of increasing future gross
margins and reducing capital expenditure requirements. The Long Beach,
California facility was closed during the first quarter of 1997, and the
Houston, Texas plant was closed during February, 1997. The Company plans to
close the Maywood, Illinois facility in the near future. Due to this timing,
the benefits of these closures are not reflected in the results of the first
quarter.
As of January 31, 1997, the Company had approximately $21,700,000 in additional
borrowing capacity available under various domestic and foreign credit
arrangements. The consolidation of three petrochemical processing plants may
be interpreted as an event of default under the loan agreement relating to
approximately $8,600,000 of the Company's term debt. Based upon discussions
with banking personnel, management believes the bank will provide the necessary
consents or waivers to maintain compliance with the loan agreement.
The accompanying notes are an integral part of these financial statements.
8
<PAGE> 9
Results of Operations
<TABLE>
<CAPTION>
THREE MONTHS ENDED DECEMBER 31,
------------------------------------------------
NET REVENUES (000'S) 1996 % of Total 1995 % of Total
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Exploration Sales and Services $ 8,936 25 $ 8,364 38
Production Sales and Services 7,652 21 7,158 33
Corrosion Control Services 5,378 15 5,560 26
Other Sales and Services 781 2 651 3
-------- ---- -------- ----
Total Oilfield Services Revenues 22,747 63 21,733 100
Petrochemical Processing 13,756 37 -- --
-------- ---- -------- ----
Total $ 36,503 100 $ 21,733 100
======== ========
</TABLE>
<TABLE>
<CAPTION>
THREE MONTHS ENDED DECEMBER 31,
-------------------------------------------------
OPERATING PROFIT (000'S) 1996 % of Total 1995 % of Total
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Oilfield Services $ 4,030 75 $ 2,580 100
Petrochemical Processing 1,323 25 -- --
-------- ---- -------- ----
Total Operations 5,353 100 2,580 100
General Corporate Expenses (2,462) (1,385)
-------- --------
Total $ 2,891 $ 1,195
======== ========
</TABLE>
Revenues
Consolidated revenues increased 68.0% in the three months ended December 31,
1996 as compared to the same period last year, primarily due to the fiscal year
1996 acquisitions.
Oilfield Service revenues increased $1,014,000 or 4.7% during the quarter ended
December 31, 1996 compared to the same quarter in 1995. Revenues from
Exploration Services increased $572,000 or 6.8% from the quarter ended December
31, 1995 to the same quarter of 1996. Demand for the Company's exploration
services is driven, in part, by the average domestic rig count which increased
12% during the first quarter of fiscal year 1997 versus 1996. Revenues from
production services increased $494,000 or 6.9% for the quarter ended December
31, 1996 compared to the quarter ended December 31, 1995. The demand for these
services has been favorably impacted by higher oil prices in the first quarter
of fiscal year 1997 versus the first quarter of 1996. The increase in
production revenues was primarily due to the increase in Canadian sucker rod
inspection and reclamation revenues. Corrosion control revenues decreased
$182,000 or 3.3% during the first quarter of 1997, compared to the first quarter
of 1996, primarily due to lower volumes. Other sales and services consist of
revenues generated by the Company's Canadian subsidiary relating to the
reconditioning and selling of engines used in connection with oil well pumping
units.
Petrochemical processing sales and services relate entirely to revenues of the
Company's Wedco, PSI and Bayshore subsidiaries which were acquired in April,
July and December of 1996, respectively. See the pro forma information
presented in Note 2 to the unaudited consolidated financial statements.
Costs and Expenses
Gross profit as a percentage of revenues increased to 33.6% during the quarter
ended December 31, 1996 versus 30.4% for the quarter ended December 31, 1995.
Additionally, within the oilfield services business, gross margins as a
percentage of revenues increased almost 1% due to an overall increase in sales
volumes and modest price improvements within some of the Company's oilfield
services markets. The overall gross margin percentage increase is due to the
generally higher margins generated by the petrochemical processing business. The
acquisition of Bayshore in December of 1996 is expected to have the effect of
reducing overall petrochemical processing margins. The gross margin percentage
for Bayshore's business is generally lower than those generated by the Company's
grinding services because Bayshore typically buys raw materials, improves the
material and then sells the finished product. In contrast, the Company's
grinding services typically involve processing customer owned material.
Selling, general and administrative costs increased $2,819,000 during the first
quarter of 1997 versus the same quarter of 1996. Selling, general and
administrative costs as a percentage of sales remained relatively stable at
18.8% and 18.7% during the three months ended December 31, 1996 and December 31,
1995, respectively. The overall increase in these costs is primarily the result
The accompanying notes are an integral part of these financial statements.
9
<PAGE> 10
of the fiscal year 1996 acquisitions of Wedco and PSI. The company also
incurred higher legal and employee compensation expenses during the first
quarter of fiscal year 1997 versus 1996, offset by lower insurance costs
relating to workers compensation.
Depreciation and amortization expense increased from $1,339,000 for the quarter
ended December 31, 1995 to $2,500,000 for the quarter ended December 31, 1996.
The increase resulted from additions of property, plant and equipment and
goodwill primarily due to the acquisitions made during fiscal year 1996.
Interest Income/Expense
Net interest expense was $199,000 during the quarter ended December 31, 1996.
For the quarter ended December 31, 1995, the Company had net interest income of
$376,000. The change is due to the fiscal 1996 acquisitions which increased
the Company's debt and reduced investable cash balances.
Income Taxes
The Company's effective tax rate increased to 32.9% during the first quarter of
fiscal year 1997 compared to 5.6% during the same quarter of 1996. This change
is due to the Company decreasing its valuation allowance through the provision
for income taxes to reflect its ability to benefit from temporary differences
during fiscal year 1996. Also, in connection with the April 1996 acquisition
of Wedco Technology, Inc., the Company reversed the remaining valuation
allowance against net tax assets expected to be realized, resulting in a
decrease of acquired goodwill. As a result of the reversal of the valuation
allowance, provisions for income taxes for periods subsequent to the Wedco
acquisition will be higher as a percentage of pre-tax income than reported in
fiscal years 1995 and 1996.
Operating Income
Operating income increased from $1,195,000 for the quarter ended December 31,
1995 to $2,891,000 for the same period in 1996. The increase is due to the
changes in revenues and costs and expenses, explained above.
Net Income
For the quarter ended December 31, 1996, the Company had net income of
$1,847,000 as compared to net income of $1,500,000 for the same period in 1995,
due to interest expense, an increase in tax expense and the other factors
described above.
Foreign Currency Translation
The fluctuation of the dollar against the Dutch Guilder, the British Pound and
the Swiss Krona has impacted the translation of revenues and income of Wedco's
European operations into U.S. dollars for the three months ended December
31,1996. Gains and losses from the translation of certain balance sheet
accounts are not included in determining net income, but are accumulated as a
separate component of stockholders' equity. These unrealized gains and losses
are subject to deferred income taxes. As a result of the dollar's fluctuation
against these currencies and changes in the net assets of foreign subsidiaries,
stockholders' equity decreased net of deferred income taxes by approximately
$82,000 during the three months ended December 31, 1996.
The accompanying notes are an integral part of these financial statements.
10
<PAGE> 11
PART II OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Annual Meeting of Shareholders of the Company was held on October 7,
1996 for the following purposes:
1) To elect three Class II Directors to serve until the 1999 Annual
Meeting of Shareholders and one Class III Director to serve until the
1997 Annual Meeting of Shareholders and until their respective
successors are elected and qualified;
2) To approve the ICO, Inc. 1996 Stock Option Plan;
3) To approve the amendment and restatement of the 1993 Stock Option Plan
for Non-employee Directors;
4) To ratify and approve the selection of Price Waterhouse LLP as the
Company's independent accountants for the ensuing fiscal year; and
5) To consider and act upon any matters incidental to the foregoing
purposes and transact such other business as may properly come before
the meeting or any adjournment thereof.
Holders of shares of Common Stock of record on the books of the Company at
the close of business on August 23, 1996 were entitled to vote at the meeting.
William J. Morgan, Sylvia A. Pacholder and William E. Willoughby were
elected as Class II Directors at the annual meeting with 18,066,462, 17,976,641
and 18,050,578 votes for; and 193,381, 283,202 and 209,265 shares withheld,
respectively.
James E. Gibson was elected as a Class III Director at the annual meeting
with 18,055,962 votes for, and 203,881 shares withheld.
The ICO, Inc. 1996 Stock Option Plan was approved by the following votes:
17,047,514 votes for, 1,098,497 votes against, 88,114 abstentions and 25,718
broker non-votes.
The amendment and restatement of the ICO, Inc. 1993 Stock Option Plan for
Non-employee Directors was approved by the following votes: 17,586,900 votes
for, 554,710 votes against, 92,515 abstentions and 25,718 broker non-votes.
The selection of Price Waterhouse LLP as the Company's auditors for the
1996 fiscal year was approved by the following vote: 18,181,512 votes for,
43,776 votes against, and 34,555 abstentions.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
Exhibit 27 - Financial Data Schedule
The accompanying notes are an integral part of these financial statements.
11
<PAGE> 12
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.
ICO, Inc.
------------------------------------
(Registrant)
/s/ Asher O. Pacholder
------------------------------------
February 13, 1997 Asher O. Pacholder
Chairman and Chief Financial Officer
(Principal Financial Officer)
/s/ Jon C. Biro
------------------------------------
Jon C. Biro
Senior Vice President and Treasurer
(Principal Accounting Officer)
The accompanying notes are an integral part of these financial statements.
12
<PAGE> 13
INDEX TO EXHIBITS
EXHIBIT NO. DESCRIPTION
- ----------- -----------
Exhibit 27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
quarterly filing on Form 10-Q for the period ended December 31, 1996 and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-START> OCT-01-1996
<PERIOD-END> DEC-31-1996
<CASH> 9,187,000
<SECURITIES> 0
<RECEIVABLES> 28,963,000
<ALLOWANCES> (598,000)
<INVENTORY> 12,435,000
<CURRENT-ASSETS> 57,135,000
<PP&E> 133,134,000
<DEPRECIATION> (55,850,000)
<TOTAL-ASSETS> 176,855,000
<CURRENT-LIABILITIES> 29,470,000
<BONDS> 0
0
13,000
<COMMON> 36,067,000
<OTHER-SE> 90,480,000
<TOTAL-LIABILITY-AND-EQUITY> 176,855,000
<SALES> 36,503,000
<TOTAL-REVENUES> 36,503,000
<CGS> 24,239,000
<TOTAL-COSTS> 33,612,000
<OTHER-EXPENSES> (62,000)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 199,000
<INCOME-PRETAX> 2,754,000
<INCOME-TAX> 907,000
<INCOME-CONTINUING> 1,847,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,847,000
<EPS-PRIMARY> .07
<EPS-DILUTED> .07
</TABLE>
