UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
(MARK ONE) QUARTERLY REPORT / X / OR TRANSITION REPORT / /
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended
July 31, 2000 Commission File No. 1-5865
GERBER SCIENTIFIC, INC.
---------------------------------
(Exact name of Registrant as
specified in its charter)
CONNECTICUT 06-0640743
------------------------------- ---------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
83 Gerber Road West, South Windsor, Connecticut 06074
------------------------------------------------- ---------------
(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number, including area (860) 644-1551
code ---------------
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 / /.
At July 31, 2000, 22,009,149 shares of common stock of the
Registrant were outstanding.
<PAGE 1>
GERBER SCIENTIFIC, INC.
AND SUBSIDIARIES
CONTENTS OF QUARTERLY REPORT ON FORM 10-Q
Quarter Ended July 31, 2000
PAGE
Part I - Financial Information
Item 1. Consolidated Financial Statements:
Statements of Earnings for the three months
ended July 31, 2000 and 1999 2
Balance Sheets at July 31, 2000 and
April 30, 2000 3-4
Statements of Cash Flows for the three months
ended July 31, 2000 and 1999 5
Notes to Financial Statements 6
Independent Accountants' Report 10
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 11
Item 3. Quantitative and Qualitative Disclosures About
Market Risk 15
Part II - Other Information
Item 4. Submission of Matters to a Vote of Security
Holders 15
Item 5. Other Information 15
Item 6. Exhibits and Reports on Form 8-K 16
Signature 17
Exhibit Index 18
<PAGE 2>
PART I - FINANCIAL INFORMATION
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS
GERBER SCIENTIFIC, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
--------------------------------------------------------------
Three Months
In thousands (except per share amounts) Ended July 31,
--------------------------------------------------------------
2000 1999
----------------------
Revenue:
Product sales $125,958 $125,856
Service 12,432 13,620
-------- --------
138,390 139,476
-------- --------
Costs and Expenses:
Cost of product sales 81,103 72,621
Cost of service 8,398 7,305
Selling, general and administrative 35,923 35,092
Research and development expenses 7,755 8,598
Goodwill amortization 2,241 2,136
Special charge (Note 3) 4,419 --
-------- --------
139,839 125,752
-------- --------
Operating income (loss) (1,449) 13,724
Other income 540 393
Interest expense (3,286) (2,464)
-------- --------
Earnings (loss) before income taxes (4,195) 11,653
Provision (benefit) for income taxes (1,500) 4,100
-------- --------
Net earnings (loss) ($2,695) $ 7,553
======== ========
Per share of common stock:
Basic ($ .12) $ .34
Diluted ($ .12) $ .34
Dividends $ .08 $ .08
Average shares outstanding:
Basic 21,998 22,118
Diluted 21,998 22,452
See Accompanying Notes
<PAGE 3-4>
GERBER SCIENTIFIC, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
---------------------------------------------------------------
July 31, April 30,
In thousands 2000 2000
---------------------------------------------------------------
Assets
Current Assets:
Cash and short-term cash investments $ 18,406 $ 22,954
Accounts receivable 105,497 121,494
Inventories 90,075 86,472
Prepaid expenses 22,490 21,042
-------- --------
236,468 251,962
-------- --------
Property, Plant and Equipment 170,237 165,341
Less accumulated depreciation 69,672 66,121
-------- --------
100,565 99,220
-------- --------
Intangible Assets 246,125 245,797
Less accumulated amortization 29,930 27,419
-------- --------
216,195 218,378
-------- --------
Other Assets 3,534 3,276
-------- --------
$556,762 $572,836
======== ========
Liabilities and Shareholders' Equity
Current Liabilities:
Notes payable $ -- $ --
Accounts payable 52,428 58,043
Accrued compensation and benefits 12,730 16,646
Other accrued liabilities 28,882 26,689
Deferred revenue 7,911 8,436
Advances on sales contracts 3,079 2,610
-------- --------
105,030 112,424
-------- --------
Noncurrent Liabilities:
Deferred income taxes 7,979 8,608
Long-term debt 190,880 194,892
-------- --------
198,859 203,500
-------- --------
Contingencies and Commitments
Shareholders' Equity:
Preferred stock, no par value;
authorized 10,000,000 shares; no
shares issued -- --
Common stock, $1 par value;
authorized 65,000,000 shares; issued
22,804,311 and 22,779,651 shares 22,804 22,780
Paid-in capital 43,837 43,615
Retained earnings 206,296 210,749
Treasury stock, at cost (795,162 and
797,444 shares, respectively) (16,351) (16,397)
Unamortized value of restricted stock
grants (649) (557)
Accum. other comprehensive income (loss) (3,064) (3,278)
------- --------
252,873 256,912
------- --------
$556,762 $572,836
======== ========
See Accompanying Notes
<PAGE 5>
GERBER SCIENTIFIC, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
---------------------------------------------------------------------
Three Months
In thousands Ended July 31,
---------------------------------------------------------------------
2000 1999
----------------------
Cash Provided by (Used for):
Operating Activities:
Net earnings (loss) ($2,695) $ 7,553
Adjustments to reconcile net earnings to
cash provided by operating activities:
Depreciation and amortization 6,908 6,096
Special charge 4,419 --
Deferred income taxes (629) 249
Other non-cash items 127 76
Changes in operating accounts:
Receivables 15,997 (5,270)
Inventories (3,603) (10,499)
Prepaid expenses (1,448) 6,565
Accounts payable and accrued expenses (10,905) (6,845)
------- --------
Provided by (Used for) Operating Activities 8,171 (2,075)
------- --------
Investing Activities:
Additions to property, plant and equipment (6,559) (5,069)
Intangible and other assets (677) 8
Other, net 214 590
------- --------
(Used for) Investing Activities (7,022) (4,471)
------- --------
Financing Activities:
Additions of long-term debt 13,000 10,606
Repayments of long-term debt (17,012) (13,097)
Proceeds from issuance of stock 73 1,765
Dividends on common stock (1,758) (1,765)
-------- --------
(Used for) Financing Activities (5,697) (2,491)
-------- --------
(Decrease) in Cash and Short-Term
Cash Investments (4,548) (9,037)
Cash and Short-Term Cash Investments,
Beginning of Period 22,954 26,523
------- --------
Cash and Short-Term Cash Investments, $18,406 $ 17,486
End of Period ======= ========
See Accompanying Notes
<PAGE 6>
GERBER SCIENTIFIC, INC. AND SUBSIDIARIES
NOTES TO (UNAUDITED) CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1. Basis of Presentation
The accompanying unaudited consolidated financial statements have
been prepared in accordance with generally accepted accounting
principles for interim financial statements and with the
instructions to Form 10-Q and Article 10 of Regulation S-X.
Accordingly, they 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.
Operating results for the three-month period ended July 31, 2000
are not necessarily indicative of the results that may be
expected for the year ended April 30, 2001.
For further information, refer to the consolidated financial
statements and footnotes thereto included in the Company's Annual
Report on Form 10-K for the year ended April 30, 2000.
NOTE 2. Inventories
The classification of inventories was as follows (in thousands):
July 31, 2000 April 30, 2000
------------- --------------
Raw materials and purchased parts $57,146 $52,847
Work in process 32,929 33,625
------- -------
$90,075 $86,472
======= =======
NOTE 3. Special Charge
In June 2000, the Company began implementation of a program to
reduce the number of employees by approximately 7.5 percent (225-
240 people) through early retirement incentives, voluntary
separation arrangements, and involuntary severance. The
workforce reductions primarily affect the Sign Making and
Specialty Graphics and Apparel and Flexible Materials operating
segments. The Company recorded a special charge that included
$1.9 million of provisions for employee termination benefits in
the first quarter of 2000. Approximately $0.6 million, or 37
percent of the accrual for the program, had been paid as of July
31, 2000.
The special charge also included provisions for anticipated
losses on the sale of facilities amounting to $2.3 million and
losses for other impaired assets, principally patents, amounting
to $0.2 million. The facilities, with a carrying value of $5.7
million after the provision, are not occupied and the expected
disposal dates are uncertain at this time.
<PAGE 7>
The above actions totaled $4.4 million and are included in the
line "special charge" in the consolidated statement of earnings.
NOTE 4. Segment Information
Three Months Ended
In thousands July 31,
-------------------------------- -----------------------------
2000 1999
------------- -------------
Segment revenue:
Sign Making & Specialty Graphics $ 68,853 $ 68,334
Apparel & Flexible Materials 46,887 48,865
Ophthalmic Lens Processing 22,650 22,277
-------- --------
$138,390 $139,476
======== ========
Segment profit:
Sign Making & Specialty Graphics $ 2,855 $ 8,866
Apparel & Flexible Materials (147) 5,144
Ophthalmic Lens Processing 840 1,251
-------- --------
$ 3,548 $ 15,261
======== ========
A reconciliation of total segment profits to consolidated
earnings before income taxes is as follows:
Three Months Ended
In thousands July 31,
-------------------------------- ---------------------------
2000 1999
------------ ------------
Segment profit $ 3,548 $ 15,261
Corporate expenses, net of
other income/expense (4,457) (1,144)
-------- --------
Earnings (loss) before interest and
taxes (909) 14,117
Interest expense (3,286) (2,464)
-------- --------
Earnings (loss) before income taxes ($ 4,195) $ 11,653
======== ========
There were no material changes in segment assets, the measure of
segment profit, or differences in the basis of segmentation
since the Company's last Annual Report on Form 10-K.
<PAGE 8>
NOTE 5. Comprehensive Income
The Company's total comprehensive income was as follows (in
thousands):
Three Months Ended
July 31,
-------------------
2000 1999
-------- --------
Net income (loss) ($2,695) $7,553
Other comprehensive income (loss):
Foreign currency translation adjustments 214 (565)
------ ------
Total comprehensive income (loss) ($2,481) $6,988
====== ======
NOTE 6. Earnings Per Share
The following table sets forth the computation of basic and
diluted earnings per share for the periods indicated:
Three Months Ended
July 31,
------------------------
2000 1999
---------- ----------
Numerator:
Net income (loss) ($2,695,000) $ 7,553,000
=========== ===========
Denominators:
Denominator for basic earnings per
share-
weighted-average shares
outstanding 21,997,623 22,118,027
Effect of dilutive securities:
Stock options -- 333,782
----------- -----------
Denominator for diluted earnings
per share-
adjusted weighted-average
shares outstanding 21,997,623 22,451,809
=========== ===========
Basic earnings (loss) per share $ (.12) $ .34
=========== ===========
Diluted earnings (loss) per share $ (.12) $ .34
=========== ===========
For the quarter ended July 31, 2000, there were 2,294 shares of
common stock equivalents that were not included in the calculation
of diluted EPS above because they were antidilutive.
<PAGE 9>
GERBER SCIENTIFIC, INC. AND SUBSIDIARIES
With respect to the unaudited consolidated financial statements
of Gerber Scientific, Inc. and subsidiaries at July 31, 2000 and
for the three-month periods ended July 31, 2000 and 1999, KPMG
LLP has made a review (based on procedures adopted by the
American Institute of Certified Public Accountants) and not an
audit, as set forth in their separate report dated August 16,
2000 appearing on page 10. That report does not express an
opinion on the interim unaudited consolidated financial
information. KPMG LLP has not carried out any significant or
additional audit tests beyond those which would have been
necessary if their report had not been included. Accordingly,
such report is not a "report" or "part of the Registration
Statement" within the meaning of Sections 7 and 11 of the
Securities Act of 1933 and the liability provisions of Section 11
of such Act do not apply.
<PAGE 10>
INDEPENDENT ACCOUNTANTS' REPORT
To the Board of Directors and Shareholders of
Gerber Scientific, Inc.
We have made a review of the consolidated statements of earnings
and cash flows of Gerber Scientific, Inc. and subsidiaries for
the three-month periods ended July 31, 2000 and 1999 and the
consolidated balance sheet as of July 31, 2000 in accordance with
standards established by the American Institute of Certified
Public Accountants. We have previously audited, in accordance
with generally accepted auditing standards, and expressed our
unqualified opinion dated May 24, 2000 on the consolidated
financial statements for the year ended April 30, 2000 (not
presented herein). The aforementioned financial statements are
the responsibility of the Company's management.
A review of interim financial information consists principally of
applying analytical review procedures to financial data and
making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an
examination in accordance with generally accepted auditing
standards, the objective of which is the expression of an opinion
regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material
modifications that should be made to the accompanying
consolidated statements of earnings and cash flows for the three-
month periods ended July 31, 2000 and 1999 or the consolidated
balance sheet as of July 31, 2000 for them to be in conformity
with generally accepted accounting principles. Also, in our
opinion the information in the accompanying consolidated balance
sheet as of April 30, 2000 is fairly presented, in all material
respects, in relation to the consolidated balance sheet from
which it has been derived.
/s/ KPMG LLP
Hartford, Connecticut
August 16, 2000
<PAGE 11>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
FINANCIAL CONDITION
The Company's ratio of current assets to current liabilities was
2.3 to 1 at July 31, 2000 compared with 2.2 to 1 at April 30,
2000. Net working capital at July 31, 2000 was $131.4 million, a
decrease of $8.1 million from the beginning of the current fiscal
year and largely attributable to lower accounts receivable
balances resulting from concerted efforts to accelerate customer
collections.
The Company's cash and investments totaled $18.4 million at
July 31, 2000 compared with $23.0 million at the end of the prior
fiscal year. Operating activities generated $8.2 million in cash
for the three-month period ended July 31, 2000 compared with $2.1
million used by operating activities for the same period last
year. Higher inventory balances partially offset cash generated
by earnings, the non-cash charges for depreciation and
amortization, and the lower accounts receivable balances in this
year's first three months. Lower accounts payable and accrued
liability balances, due largely to the timing of payments, were
also offsets to cash generation in the first quarter.
The principal non-operating use of cash in the three months ended
July 31, 2000 was for additions to property, plant, and equipment
of $6.6 million. The Company anticipates that capital
expenditures for the current fiscal year will be in the range of
$18 - $20 million and expects to fund these with cash on hand and
cash from operations. Cash was also used for payment of
dividends of $1.8 million in the first quarter.
The Company's total long-term debt at July 31, 2000 was $190.9
million, down from the April 30, 2000 balance of $194.9 million.
The ratio of total debt to EBITDA (earnings before interest,
taxes, depreciation, and amortization) increased as of July 31,
2000 and this will cause interest rates on the Company's
borrowings under its syndicated bank lines to increase in the
future. This is discussed further under "Results of Operations."
Net debt (total debt less cash and investments) was $172.5
million at July 31, 2000 versus $171.9 million at April 30, 2000
and the ratio of net debt to total capital increased slightly to
40.5 percent at July 31, 2000 from 40.1 percent at April 30,
2000.
RESULTS OF OPERATIONS
Combined sales and service revenue for the three-month period
ended July 31, 2000 was $138.4 million, which was $1.1 million
(0.8 percent) lower than the first quarter of last year. The
decrease reflected product sales that were roughly the same as
the prior year and service revenue that was lower. Product sales
revenue was suppressed approximately $6.6 million in this year's
<PAGE 12>
first quarter by comparatively weaker European currencies.
Product sales in each segment were also pressured by relatively
weaker demand for equipment in North American markets, and in the
Company's Sign Making and Specialty Graphics segment, by a
transition of distributors from an incentive-based inventory
stocking model to a demand-pull distribution model. Businesses
that were acquired in the prior year generated $6.2 million in
sales in this year's first quarter and helped offset some of the
year-to-year sales shortfall. Service revenue decreased $1.2
million (8.7 percent) from the first quarter of last year. The
decrease occurred primarily in the Apparel and Flexible Materials
operating segment and resulted from the translation effect on
service revenue earned in weaker European currencies and the loss
of service business in North America. The decline in North
American service is coincident with the continuing migration of
the apparel industry to offshore locales.
The consolidated gross profit margin in this year's first three
months was 35.3 percent, which was significantly lower than the
prior year margin of 42.7 percent. Gross profit margins on both
product sales and service revenue were lower. The decrease in
product gross profit margins was the result of a shift in mix on
both a product and geographic basis and also the impact of
lowered European currency values which are compressing margins
and impacting price competitiveness. From a business mix
perspective, equipment sales slipped to under 40 percent of the
Company's total sales and within this category, hardware
equipment sales were higher and software sales (with
comparatively higher margins) were lower than the prior year. On
a geographic basis, the increase in sales in international
markets and the softness in the North American equipment market
had negative gross margin implications in the quarter. Sales in
North America are generally the Company's most profitable and
international markets the least profitable as these sales go
through the Company's independent distribution and agency
network. The continued deterioration of European currency
valuations further eroded gross profit margins, reducing them
$1.5 million from the prior year and occurring primarily in the
Sign Making and Specialty Graphics and Apparel and Flexible
Materials operating segments. This margin impact occurred
because most of the Company's manufactured products are U.S.
dollar cost-based and sold in Europe generally in local
currencies.
The decrease in service gross profit margins was caused primarily
by a reclassification of expenses in the Apparel and Flexible
Materials operating segment. This change affected the allocation
of expenses between warranty, installation, and training and the
fulfillment of service contract obligations. The decrease in
this segment's North American service business noted above also
was a factor in the margin decline.
S,G,&A expenses, including goodwill amortization, increased $0.9
million (2.5 percent) in the first quarter compared with the
<PAGE 13>
prior year. The increase was caused predominantly by the
additional expenses associated with the businesses acquired in
the Sign Making and Specialty Graphics operating segment last
year. As a percentage of sales, S,G,&A expenses, including
goodwill amortization, increased to 27.6 percent in this year's
first quarter from 26.7 percent last year.
R&D spending decreased $0.8 million (9.8 percent) in the first
quarter compared with last year's first quarter. The decrease
was caused by the comparatively higher level of expenses related
to new product introductions in last year's first quarter in each
of the Company's operating segments. As a percentage of sales,
research and development was 5.6 percent in the first quarter
compared with 6.2 percent last year. In addition to the higher
spending last year, the growth in the revenue base resulting from
last year's business acquisitions in the Sign Making and
Specialty Graphics operating segment ($6.2 million higher)
contributed to the percentage decrease in R&D because the
distributor companies purchased do not incur R&D expenses.
In this year's first quarter, the Company recorded a $4.4 million
pre-tax charge that consisted of provisions for severance of $1.9
million, provisions for losses on the sale of facilities of $2.3
million, and $0.2 million for other asset impairments. See Note 3
on page 6 of this quarterly report on Form 10-Q for further
discussion of this special charge.
Interest expense increased $0.8 million to $3.3 million in the
first quarter ended July 31, 2000, the result of higher interest
rates and higher debt balances. Most of the Company's borrowings
were against a $235 million multi-currency revolving credit
facility. The interest rate on these borrowings is based on the
London Interbank Offered Rate (LIBOR) for the relevant currency
and term plus a margin based on the relationship of the Company's
consolidated total debt to EBITDA over the trailing four
quarters. The lower EBITDA realized by the Company in last
year's fourth quarter and this year's first quarter has caused
this debt to EBITDA relationship to rise, and accordingly the
interest margin over LIBOR to rise. In anticipation of this
higher debt to EBITDA relationship, the Company was required to
renegotiate certain debt covenants in its syndicated bank
agreement, the effect of which will also increase the interest
margin over LIBOR. Accordingly, management believes that interest
expense will trend higher until the full impact of its cost
reduction and working capital improvement programs are
implemented and the debt to EBITDA relationship improves.
The provision (benefit) rate for income taxes was 35.8 percent
for the three months ended July 31, 2000 compared with 35.2
percent in the comparable prior year period and 33.6 percent for
the full prior fiscal year. The lower tax rate last year was
primarily the result of tax reduction strategies involving the
Company's wholly owned foreign subsidiaries.
<PAGE 14>
As a result of the above, net earnings in this year's first
quarter were $0.1 million or $.01 diluted earnings per share,
before the special charge of $4.4 million ($.13 per diluted
share) and a net loss of $2.7 million or $.12 per share was
realized after the special charge. Net earnings were $7.6
million or $.34 diluted earnings per share in last year's first
quarter.
NEW ACCOUNTING PRONOUNCEMENT
In June 1998, the Financial Accounting Standards Board (FASB)
issued Statement of Financial Accounting Standards No. 133,
"Accounting for Derivative Instruments and Hedging Activities"
(SFAS 133) which, as amended, is currently effective May 1, 2001,
for the Company. The timing of adoption and the effect of SFAS
133 on the Company's financial position or results of operations
have not yet been determined.
FORWARD-LOOKING STATEMENTS
This report on Form 10-Q contains statements which, to the extent
they are not statements of historical or present fact, constitute
"forward-looking statements" under the securities laws. From
time to time, oral or written forward-looking statements may also
be included in other materials released to the public. These
forward-looking statements are intended to provide management's
current expectations or plans for the future operating and
financial performance of the Company, based on assumptions
currently believed to be valid. Forward-looking statements can
be identified by the use of words such as "believe," "expect,"
"plans," "strategy," "prospects," "estimate," "project,"
"anticipate," and other words of similar meaning in connection
with a discussion of future operating or financial performance.
These include, among others, statements relating to:
- future earnings and other measurements of financial
performance,
- future cash flow and uses of cash,
- the effect of economic downturns or growth in particular
regions,
- the effect of changes in the level of activity in particular
industries or markets,
- the scope or nature of acquisition activity,
- prospective product developments and new business
opportunities,
- cost reduction efforts,
- the outcome of contingencies, and
- the transition to the use of the euro as a currency.
All forward-looking statements involve risks and uncertainties
that may cause actual results to differ materially from those
expressed or implied in the forward-looking statements. For
additional information identifying factors that may cause actual
results to vary materially from those stated in the forward-
<PAGE 15>
looking statements, see the Company's reports on Forms 10-K, 10-
Q, and 8-K filed with the Securities and Exchange Commission from
time to time. The Company's Annual Report on Form 10-K for fiscal
2000 includes important information as to risk factors in the
"Business" section under the headings "Operating Segments" and
"Other Matters Relating to the Corporation's Business as a
Whole."
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK
No material changes have occurred in the quantitative and
qualitative market risk disclosures for the Company from those
presented in the Company's Annual Report on Form 10-K for the
year ended April 30, 2000.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
On August 31, 2000, the Company held its annual meeting of
shareholders. The holders of 76 percent of the shares of common
stock entitled to vote at this meeting were present either in
person or by proxy. The following were the voting results for
the meeting:
- The shareholders elected Directors to hold office until
the annual meeting to be held in the year 2003 with the
following votes:
For Withheld
Edward E. Hood, Jr. 16,216,423 373,508
William Jerome Vereen 16,225,162 364,769
Michael J. Cheshire 16,212,330 377,601
The terms of office of the other Directors, Donald P.
Aiken, George M. Gentile, David J. Gerber, David J. Logan,
Carole F. St. Mark and A. Robert Towbin, continued after the
meeting.
ITEM 5. OTHER INFORMATION
On August 31, 2000, the Company issued a press release reporting
that its Board of Directors had authorized the Company to pursue
strategic alternatives for its Ophthalmic Lens Processing
operating segment, including the potential divestiture of the
segment. The Company also indicated it had no plans to divest
any of its other businesses.
<PAGE 16>
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
(10)* First Amendment to $235,000,000 Credit
Agreement Dated as of May 15, 1998 between
Gerber Scientific, Inc. and the Banks Listed
Herein and Wachovia Bank, N.A.
(15)* Letter regarding unaudited interim financial
information.
(27)* Financial data schedule.
(b) Reports on Form 8-K
No Form 8-K was filed during the quarter for which this
report is filed.
*Filed herewith.
<PAGE 17>
SIGNATURE
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.
GERBER SCIENTIFIC, INC.
------------------------
(Registrant)
Date: September 13, 2000 By: / s / Gary K. Bennett
------------------ --------------------------------
Gary K. Bennett
Senior Vice President, Finance
(Principal Financial and
Accounting Officer)
<PAGE 18>
EXHIBIT INDEX
Exhibit
Index Page
Number ----
--------
(10)* First Amendment to $235,000,000 Credit
Agreement Dated as of May 15, 1998 between
Gerber Scientific, Inc. and the Banks Listed
Herein and Wachovia Bank, N.A.
(15)* Letter regarding unaudited interim financial
information.
(27)* Financial data schedule.
*Filed herewith.
