<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
___________________________
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934.
For the Quarter Ended March 31, 1995.
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 0-6866
HELIX TECHNOLOGY CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 04-2423640
(State of incorporation) (IRS Employer Identification No.)
Mansfield Corporate Center
Nine Hampshire Street
Mansfield, Massachusetts 02048-9171
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (508) 337-5111
_______________________________
Indicate by checkmark 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 ninety days.
Yes /X/ No / /
Indicate the number of shares outstanding of each of the Registrant's
classes of Common Stock as of the latest practicable date.
Class of Common Stock Outstanding at March 31, 1995
$1.00 par value 9,670,842 Shares
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HELIX TECHNOLOGY CORPORATION
Form 10-Q
INDEX
Page
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements.......................................7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations..............8
Part II. OTHER INFORMATION
Item 4 (a). Date of Annual Meeting of Stockholders.................9
Item 6 (a). Exhibits...............................................9
Item 6 (b). Reports on Form 8-K....................................9
Signatures..............................................................10
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HELIX TECHNOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
Mar. 31, 1995 Dec. 31, 1994
(in thousands) Notes (unaudited) (audited)
<S> <C> <C>
ASSETS
Current:
Cash and cash equivalents $12,595 $ 8,050
Receivables - net of allowances 13,671 12,219
Inventories - net of progress payments 4 11,122 9,556
Deferred income taxes 3 2,460 2,460
Other current assets 604 586
Total Current Assets 40,452 32,871
Property, plant and equipment at cost 23,481 22,750
Less: accumulated depreciation (15,468) (14,913)
Net property, plant and equipment 8,013 7,837
Other assets 4,984 4,678
TOTAL ASSETS $53,449 $45,386
LIABILITIES AND STOCKHOLDERS' EQUITY
Current:
Accounts payable $ 6,588 $ 4,896
Payroll and compensation 1,590 3,305
Retirement costs 747 610
Income taxes 3,730 1,182
Other accrued liabilities 376 450
Total Current Liabilities 13,031 10,443
Deferred income taxes 3 562 562
Capitalized lease obligations 24 36
Preferred stock, $1 par value; authorized
2,000,000 shares; issued and outstanding: none - -
Common stock, $1 par value; authorized 10,000,000
shares; issued and outstanding: 9,670,842 in
1995 and 9,667,642 in 1994 9,671 9,668
Capital in excess of par value 4,211 2,157
Currency translation adjustment 1,201 1,043
Retained earnings 24,749 21,477
Total Stockholders' Equity 39,832 34,345
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $53,449 $45,386
</TABLE>
The accompanying notes are an integral part of these financial statements.
Page 3
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HELIX TECHNOLOGY CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS AND RETAINED EARNINGS
(unaudited)
<TABLE>
<CAPTION>
For the 13 weeks ended
(in thousands except per share data) Notes Mar. 31, 1995 Apr. 1, 1994
<S> <C> <C>
Net Sales $27,154 $18,785
Costs and expenses:
Cost of sales 15,070 12,009
Research and development 1,122 952
Selling, general and administrative 4,678 3,184
20,870 16,145
Operating income 6,284 2,640
Interest expense - -
Joint venture income 508 72
Other 90 (9)
Income before taxes 6,882 2,703
Income taxes 3 2,546 946
Net income $ 4,336 $ 1,757
Net income per common share $ 0.43 $ 0.18
Weighted average shares 9,990 9,722
</TABLE>
The accompanying notes are an integral part of these financial statements.
Page 4
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HELIX TECHNOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
<TABLE>
<CAPTION>
For the 13 weeks ended
(in thousands) Mar. 31, 1995 Apr. 1, 1994
<S> <C> <C>
Cash flows from operating activities:
Net income $ 4,336 $1,757
Adjustments to reconcile net income to net
cash provided (used) by operating activities:
Depreciation and amortization 579 472
Undistributed earnings of joint venture, other (148) 1
Net change in operating assets and liabilities (A) (449) 310
Net cash provided by operating activities 4,318 2,540
Cash flows from investing activities:
Capital expenditures net of property sold or retired (755) (389)
Net cash used by investing activities (755) (389)
Cash flows from financing activities:
Net increase/(decrease) in short-term debt - -
Decrease in capital lease obligations (11) ( 11)
Net cash provided by employee stock plans 2,057 328
Cash dividends paid (1,064) (572)
Net cash used by financing activities 982 (255)
Increase/(decrease) in cash and cash equivalents 4,545 1,896
Cash and cash equivalents, at the beginning of the period 8,050 1,677
Cash and cash equivalents, at the end of the period $12,595 $3,573
(A)Change in operating assets and liabilities:
(Increase)/decrease in accounts receivable $(1,452) $ (407)
(Increase)/decrease in inventories (1,566) 149
(Increase)/decrease in other current assets (18) 120
Increase/(decrease) in accounts payable 1,692 638
Increase/(decrease) in other accrued expenses 895 (190)
Net change in operating assets and liabilities $ (449) $ 310
</TABLE>
The accompanying notes are an integral part of these financial statements.
Page 5
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HELIX TECHNOLOGY CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1
In the opinion of the Company, the accompanying consolidated
financial statements for the periods ending March 31, 1995, and
April 1, 1994, contain all adjustments (consisting only of normal
recurring adjustments) necessary to present fairly the financial
position as of March 31, 1995, and December 31, 1994, and the
results of operations and cash flows for the periods ended March 31,
1995 and April 1, 1994.
The results of operations for the three-month period ended March
31, 1995, are not necessarily indicative of the results expected
for the full year.
The condensed financial statements included herein have been
prepared by the Company, without audit of the three-month periods
ending March 31, 1995, and April 1, 1994, pursuant to the rules
and regulations of the Securities and Exchange Commission.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted
pursuant to such rules and regulations, although the Company
believes that the disclosures are adequate to present fairly the
Company's financial position. These condensed financial
statements should be read in conjunction with the financial
statements and the notes thereto included in the Company's latest
annual report on Form 10-K.
Note 2
Net Income Per Common Share
Net income per common share is based upon the weighted average
number of common shares and common share equivalents outstanding
during the periods, as determined by use of the treasury stock
method. Primary and fully-diluted net income per common share
are essentially the same for the periods presented.
Page 6
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HELIX TECHNOLOGY CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 3
Income Taxes
The federal, state and foreign income tax provisions of
$2,546,000 and $946,000 for the three-month periods ended March
31, 1995, and April 1, 1994, respectively, reflect the effects of
various available tax credits. Tax credits are treated as
reductions of income tax provisions in the year in which the
credits are realized. The Company does not provide for United
States taxes on the undistributed earnings of its wholly owned
foreign subsidiaries.
A certain level of export income of the Company's Foreign Sales
Corporation (FSC) is permanently exempt from federal income tax;
accordingly, the income tax provisions for the three-month
periods ended March 31, 1995, and April 1, 1994, include the federal tax
benefit on export income of the FSC.
The effective income tax rate for the three-month periods ended
March 31, 1995, and April 1, 1994, was 37.0% and 35.0%,
respectively.
The major components of deferred tax assets and liabilities are
inventory valuation, compensation and depreciation, respectively.
Based on past experience, the Company expects that the future
taxable income will be sufficient for the realization of the
deferred tax assets. The Company believes that a valuation
allowance is not required.
Note 4
Inventories
<TABLE>
<CAPTION>
(in thousands) March 31, 1995 Dec. 31, 1994
<S> <C> <C>
Finished goods $ 3,252 $2,404
Work in process 6,204 6,115
Materials and parts 1,666 1,037
Net inventories $11,122 $9,556
</TABLE>
Inventories are stated at the lower of cost of market on a first-
in, first-out basis. Progress payments netted against
inventories represent payments received for allowable costs
incurred on government contracts which typically cover product
required for short-term military production programs.
Page 7
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HELIX TECHNOLOGY CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Results of Operations
Sales for the quarter increased 45% to $27.2 million
compared with $18.8 million a year ago. The continuing
increase in sales is the result of record shipments of ON-
BOARD vacuum pump systems.
Gross margin increased 78% compared to the comparable period
one year ago. Gross profit percentage for the quarter was
44.5% compared with 36.1% a year ago. Last year's results
included the impact of the low margin Maverick Missile
Program which was completed in 1994.
Research and development expenditures increased $170
thousand in the first quarter of 1995 compared with the same
period last year. Selling, general and administrative
expense increased by $1.5 million in the first quarter of
1995 versus the first quarter of 1994. This increase in
Selling, general and administrative expense is attributable
to increases in selling costs, compensation, and non-
recurring costs associated with the start-up of new customer
support centers in Austin, Texas and Livingston, Scotland.
Operating income increased by $3.6 million compared with the
first quarter of 1994. Higher commercial products sales
coupled with operational improvements are the primary
reasons for the increase in operating income.
Income from the Company's joint venture in Japan increased
$436 thousand in the first quarter of 1995 compared with the
same period a year ago.
Liquidity and Capital Resources
Cash provided by operating activities for the first quarter
of 1995 was $4.3 million compared with $2.5 million for the
comparable period last year. Capital expenditures for the
first quarter of 1995 increased by $366 thousand compared to
the first quarter of 1994.
The Company has informal bank lines of credit available
under various short-term borrowing agreements totaling $12.0
million. There were no borrowings under these agreements at
the end of the first quarter of 1995.
Cash dividends paid to stockholders during the first quarter
of 1995 were $1,064,000.
The Company believes anticipated cash flow from operations
and funds available under existing credit lines will be
adequate to meet its anticipated requirements.
Page 8
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HELIX TECHNOLOGY CORPORATION
PART II. OTHER INFORMATION
Item 4(a). Date of Annual Meeting of Stockholders
The Company's Annual Meeting of Stockholders
will be held on April 20, 1995.
Item 6(a). Exhibits
4A Description of Common Stock
(incorporated herein, by reference to
Exhibit 3 to the Form 10-Q for the
quarter ended September 30, 1988).
4B Description of Preferred Stock
(incorporated herein, by reference to
Exhibit 3 to the Form 10-Q for the
quarter ended September 30, 1988).
Item 6(b). Reports on Form 8-K
No Form 8-K was required to be filed during
the quarter ended March 31, 1995.
Page 9
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HELIX TECHNOLOGY CORPORATION
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.
HELIX TECHNOLOGY CORPORATION
(Registrant)
April 18, 1995 By: Beijan Assar
Date Corporate Controller and
Chief Accounting Officer
On-Board is a registered trademark of Helix Technology
Corporation.
Page 10
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<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> 12,595
<SECURITIES> 0
<RECEIVABLES> 13,671
<ALLOWANCES> 0
<INVENTORY> 11,122
<CURRENT-ASSETS> 40,452
<PP&E> 23,481
<DEPRECIATION> (15,468)
<TOTAL-ASSETS> 53,449
<CURRENT-LIABILITIES> 13,031
<BONDS> 0
<COMMON> 9,671
0
0
<OTHER-SE> 30,161
<TOTAL-LIABILITY-AND-EQUITY> 53,449
<SALES> 27,154
<TOTAL-REVENUES> 27,154
<CGS> 15,070
<TOTAL-COSTS> 5,800
<OTHER-EXPENSES> (598)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 6,882
<INCOME-TAX> 2,546
<INCOME-CONTINUING> 4,336
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,336
<EPS-PRIMARY> .43
<EPS-DILUTED> .43
</TABLE>
