UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
(Mark One)
(X) Quarterly Report Under Section 13 or 15(D) of The Securities Exchange
Act of 1934
For Quarter Ended March 31, 1995
OR
( ) Transition Report Pursuant to Section 13 or 15(d) of The Securities
Exchange Act of 1934
Commission File Number 0-275
Allen Organ Company
(Exact name of registrant as specified in its charter)
Pennsylvania 23-1263194
(State of Incorporation) (I.R.S. Employer Identification No.)
150 Locust Street, P. O. Box 36, Macungie, Pennsylvania 18062-0036
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 610-966-2200
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 _____
Number of shares outstanding of each of the issuer's classes of common
stock, as of April 17, 1995:
Class A - Voting 84,984 shares
Class B - Non-voting 1,278,769 shares
<PAGE>
ALLEN ORGAN COMPANY
INDEX
Part I Financial Information
Item 1. Financial Statements
Consolidated Statements of Income for the three months
ended March 31, 1995 and 1994
Consolidated Balance Sheets at March 31, 1995 and
December 31, 1994
Consolidated Statements of Cash Flows for the three
months ended March 31, 1995 and 1994
Notes to Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Part II Other Information
Item 6. Exhibits and Reports on Form 8-K
Signatures
<PAGE>
PART I FINANCIAL INFORMATION
ITEM 1.FINANCIAL STATEMENTS
ALLEN ORGAN COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
For the 3 Months
Ended:
3/31/95 3/31/94
Net Sales $6,498,325 $7,231,105
Costs and expenses
Costs of sales 4,593,040 5,074,288
Selling, general and
administrative 1,012,620 990,874
Total Costs and Expenses 5,605,660 6,065,162
Income from operations 892,665 1,165,943
Interest and other income 406,707 335,970
Income before taxes on
income 1,299,372 1,501,913
Provision for taxes on
income 475,000 600,000
Net Income $824,372 $901,913
Earnings per share $0.60 $0.65
Shares used in per share
calculation 1,364,147 1,378,502
Dividends per share - Cash $0.13 $0.13
See accompanying notes.
<PAGE>
ALLEN ORGAN COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, Dec 31,
ASSETS 1995 1994
(Unaudited) (Audited)
Current Assets
Cash $ 575,841 $ 105,067
Accounts Receivable 3,274,100 3,052,683
Investments including accrued interest 36,803,217 36,783,908
Inventories:
Raw Materials 3,646,219 3,460,015
Work in Process 5,026,324 4,884,735
Finished Goods 756,712 450,015
Total Inventories 9,429,255 8,794,765
Prepaid Income Taxes 0 276,580
Prepaid Expenses 186,394 98,903
Deferred Income Tax Benefits 12,685 67,420
Total Current Assets 50,281,492 49,179,326
Property, Plant and Equipment 15,932,635 15,877,987
Less accumulated depreciation (8,844,458) (8,714,511)
Total Property, Plant and Equipment 7,088,177 7,163,476
Other Assets
Inventory held for Future Service 1,142,693 1,145,511
Intangible Pension Asset 443,273 443,273
Deferred income tax benefits 43,116 43,116
Note Receivable 81,855 81,855
Cash Value of Life Insurance 408,138 408,138
Total Other Assets 2,119,075 2,121,893
Total Assets $59,488,744 $58,464,695
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Current Liabilities
Accounts Payable $ 220,837 $ 171,791
Customer Deposits 464,836 446,657
Accrued Taxes on Income 145,508 0
Accrued Expenses 649,235 623,100
Total Current Liabilities 1,480,416 1,241,548
Noncurrent Liabilities
Deferred Liabilities 76,042 77,917
Accrued Pension Cost 1,458,607 1,374,007
Total Noncurrent Liabilities 1,534,649 1,451,924
Total Liabilities 3,015,065 2,693,472
STOCKHOLDERS' EQUITY
Common Stock 1995 1994
Class A 128,104 shares; 128,104 shares 128,104 128,104
Class B 1,409,889 shares;1,409,889 shares 1,409,889 1,409,889
Capital in Excess of Par Value 12,610,377 12,610,377
Retained Earnings
Balance at beginning of current fiscal year 46,524,142 42,828,013
Net income 824,372 4,449,703
Dividends - cash 1995 and 1994 (177,305) (753,574)
Balance at end 47,171,209 46,524,142
Pension Liability Adjustment (489,823) (489,823)
Unrealized Loss on Investments (18,067) (98,399)
Treasury Stock 1995 1994
Class A 43,120 shares; 43,120 shares (451,436) (451,436)
Class B 130,988 shares;115,890 shares (3,886,574) (3,861,631)
Total Treasury Stock (4,338,010) (4,313,067)
Total Stockholders' Equity 56,473,679 55,771,223
Total Liabilities and Stockholders' Equity $59,488,744 $58,464,695
See accompanying notes.
<PAGE>
ALLEN ORGAN COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the 3 Months Ended:
3/31/95 3/31/94
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $824,372 $901,913
Adjustments to reconcile net income to net
cash provided by operating activities
Depreciation 130,414 142,527
Change in assets and liabilities
(Increase) Decrease in accounts
receivable (221,417) (502,014)
(Increase) Decrease in inventories (631,672) (486,678)
(Increase) Decrease in prepaid income
taxes 276,580 101,063
(Increase) Decrease in prepaid expenses (87,491) (134,536)
(Increase) Decrease in deferred income
tax benefits 54,735 (16,215)
(Decrease) Increase in accounts payable 49,046 118,121
(Decrease) Increase in accrued taxes 145,508 449,736
(Decrease) Increase in accrued expenses 26,135 22,758
(Decrease) Increase in customer deposits 18,179 67,689
(Decrease) Increase in other noncurrent
liabilities 82,725 76,973
Net Cash Provided by Operating
Activities 667,114 741,337
CASH FLOW FROM INVESTING ACTIVITIES
Net additions to plant and equipment (55,115) (81,593)
Increase in note receivable 0 (40,985)
Net sale (or purchase) of short term
investments 61,023 (470,830)
Net Cash Provided by (Used In)
Investing Activities 5,908 (593,408)
CASH FLOWS FROM FINANCING ACTIVITIES
Reacquired Class B common shares (24,943) (45,311)
Dividends paid in cash (177,305) (179,237)
Net Cash Used In Financing Activities (202,248) (224,548)
NET INCREASE (DECREASE) IN CASH 470,774 (76,619)
CASH, BEGINNING 105,067 456,433
CASH, ENDING $575,841 $379,814
See accompanying notes.
<PAGE>
ALLEN ORGAN COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The results of operations for the interim periods shown in this report
are not necessarily indicative of results to be expected for the fiscal
year. In the opinion of management, the information contained herein
reflects all adjustments necessary to make the results of operations
for the interim periods a fair statement of such operations. All such
adjustments are of a normal recurring nature.
Certain notes and other information have been condensed or omitted from
the interim financial statements presented in the Quarterly Report on
Form 10-Q. Therefore, these financial statements should be read in
conjunction with the company's 1994 Annual Report on Form 10-K.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND
RESULTS OF OPERATIONS.
Sales for the first quarter of 1995 declined from 1994 by $732,780 from
less incoming orders. The 1994 first quarter orders had been increased by
the introduction of several new models during that year. Cost of sales
decreased by $481,248 and the ratio increased to 70.7% of sales from 70.2%
in 1994 from lower sales over which to absorb fixed overhead expenses.
Selling, general and administrative expenses increased to 15.6% of 1995
sales from 13.7% due to the lower sales volume. Non-operating income for
1995 increased by $70,737 from increases in investment amounts and rates.
Sales decreased $675,831 from the preceding quarter ended December 31, 1994
from a lower volume of incoming orders. Cost of sales increased to 70.7%
of sales as compared to 65.4% from lower sales over which to absorb fixed
overhead expenses as well as variations in product mix. The selling,
general and administrative expenses were basically equal. 1995 first
quarter non-operating income decreased by $228,756 basically due to a
non-recurring legal action recovery in the 1994 fourth quarter.
PART II OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(b) No reports on Form 8-K were filed during the quarter ended March
31, 1995.
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.
Allen Organ Company
(Registrant)
Date: April 18, 1995 STEVEN MARKOWITZ
Steven Markowitz, President
Date: April 18, 1995 LEONARD W. HELFRICH
Leonard W. Helfrich, Treasurer and
Principal Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
MARCH 31, 1995 FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> 575,841
<SECURITIES> 36,803,217
<RECEIVABLES> 3,274,100
<ALLOWANCES> 0
<INVENTORY> 9,429,255
<CURRENT-ASSETS> 50,281,492
<PP&E> 15,932,635
<DEPRECIATION> 8,844,458
<TOTAL-ASSETS> 59,488,744
<CURRENT-LIABILITIES> 1,480,416
<BONDS> 0
<COMMON> 1,537,993
0
0
<OTHER-SE> 54,935,686
<TOTAL-LIABILITY-AND-EQUITY> 59,488,744
<SALES> 6,498,325
<TOTAL-REVENUES> 6,498,325
<CGS> 4,593,040
<TOTAL-COSTS> 4,593,040
<OTHER-EXPENSES> 1,012,620
<LOSS-PROVISION> 0
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<INCOME-PRETAX> 1,299,372
<INCOME-TAX> 475,000
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<NET-INCOME> 824,372
<EPS-PRIMARY> .60
<EPS-DILUTED> .60
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