<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 June 30, 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 June 30, 1995
$1.00 par value 9,774,444 Shares
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HELIX TECHNOLOGY CORPORATION
Form 10-Q
INDEX
Page
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements.............................3-7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations......8
Part II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security
Holders............................................9
Item 6(a). Exhibits..........................................10
Item 6(b). Reports on Form 8-K...............................10
Signature..........................................................11
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HELIX TECHNOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
June 30, 1995 Dec. 31, 1994
(in thousands) (unaudited) (audited)
ASSETS
Current:
Cash and cash equivalents $11,217 $ 8,050
Receivables - net of allowances 12,456 12,219
Inventories (Note 4) 12,261 9,556
Deferred income taxes (Note 3) 2,460 2,460
Other current assets 586 586
Total Current Assets 38,980 32,871
Property, plant and equipment at cost 24,155 22,750
Less: accumulated depreciation (15,925) (14,913)
Net property, plant and equipment 8,230 7,837
Other assets 6,289 4,678
TOTAL ASSETS $53,499 $45,386
LIABILITIES AND STOCKHOLDERS' EQUITY
Current:
Accounts payable $ 5,814 $ 4,896
Payroll and compensation 1,991 3,305
Retirement costs 893 610
Income taxes 736 1,182
Other accrued liabilities 427 450
Total Current Liabilities 9,861 10,443
Deferred income taxes (Note 3) 562 562
Capitalized lease obligations 12 36
Preferred stock, $1 par value; authorized
2,000,000 shares; issued and outstanding: none - -
Common stock, $1 par value; authorized 30,000,000
shares; issued: 9,850,492 in 1995 and
9,667,642 in 1994 9,850 9,668
Capital in excess of par value 4,707 2,157
Treasury stock (76,048 shares) (2,553) -
Currency translation adjustment 2,397 1,043
Retained earnings 28,663 21,477
Total Stockholders' Equity 43,064 34,345
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $53,499 $45,386
The accompanying notes are an integral part of these financial statements.
Page 3
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HELIX TECHNOLOGY CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
For the three and six-month periods ended June 30, 1995 and July 1, 1994
(unaudited)
(in thousands except per share data)
June 30, 1995 July 1, 1994
Three Six Three Six
Months Months Months Months
Net Sales $29,030 $56,184 $21,251 $40,036
Costs and expenses:
Cost of sales 16,120 31,190 12,422 24,431
Research and development 1,106 2,228 1,067 2,019
Selling, general and
administrative 4,356 9,034 3,754 6,938
21,582 42,452 17,243 33,388
Operating income 7,448 13,732 4,008 6,648
Joint venture income 370 878 97 169
Other 92 182 (72) (81)
Income before taxes 7,910 14,792 4,033 6,736
Income taxes (Note 3) 2,927 5,473 1,412 2,358
Net income $ 4,983 $ 9,319 $ 2,621 $ 4,378
Net income per common share $ 0.50 $ 0.93 $ 0.27 $ 0.45
Weighted average shares 10,016 10,003 9,824 9,786
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)
For the 26 weeks ended
(in thousands) June 30, 1995 July 1, 1994
Cash flows from operating activities:
Net income $ 9,319 $4,378
Adjustments to reconcile net income to net
cash provided (used) by operating activities:
Depreciation and amortization 1,207 976
Undistributed earnings of joint venture, other (257) 63
Net change in operating assets and liabilities (A) (3,524) (1,984)
Net cash provided by operating activities 6,745 3,433
Cash flows from investing activities:
Capital expenditures net of property sold or retired (1,600) (782)
Net cash used by investing activities (1,600) (782)
Cash flows from financing activities:
Treasury Stock - Exercise of Employee Stock Options (2,553) -
Decrease in capital lease obligations (24) (31)
Net cash provided by employee stock plans 2,732 604
Cash dividends paid (2,133) (1,148)
Net cash used by financing activities (1,978) (575)
Increase/(decrease) in cash and cash equivalents 3,167 2,076
Cash and cash equivalents, at the beginning of
the period 8,050 1,677
Cash and cash equivalents, at the end of the period $11,217 $ 3,753
(A) Change in operating assets and liabilities:
(Increase)/decrease in accounts receivable $ (237) $(2,434)
(Increase)/decrease in inventories (2,705) (609)
(Increase)/decrease in other current assets - 205
Increase/(decrease) in accounts payable 918 1,479
Increase/(decrease) in other accrued expenses (1,500) (625)
Net change in operating assets and liabilities $(3,524) $(1,984)
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 June 30, 1995, and July 1, 1994, contain
all adjustments (consisting only of normal recurring adjustments) necessary
to present fairly the financial position as of June 30, 1995, and
December 31, 1994, and the results of operations and cash flows for the
periods ended June 30, 1995 and July 1, 1994.
The results of operations for the six-month period ended June 30, 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 six-month periods ending June 30, 1995,
and July 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 $5,473,000 and
$2,358,000 for the six-month periods ended June 30, 1995, and July 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 six-month periods ended June 30, 1995, and
July 1, 1994, include the federal tax benefit on export income of the FSC.
The effective income tax rate for the six-month periods ended June 30,
1995, and July 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
(in thousands) June 30, 1995 Dec. 31, 1994
Finished goods $ 3,533 $2,404
Work in process 6,457 6,115
Materials and parts 2,251 1,037
Net inventories 12,261 9,556
Inventories are stated at the lower of cost of market on a first-in, first-
out basis.
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 were $29.0 million compared with $21.3 million a year
ago. Sales for the six month period were $56.2 million compared with
$40.0 million in the first half of 1994. The continuing increase in sales
is the result of record shipments of ON-BOARD vacuum pump systems.
Gross profit percentage for the quarter was 44.5% compared with 41.5% a
year ago. Gross profit percentage for the first half of 1995 was 44.5%
versus 39.0% for the first half of 1994. The improved profit margins in
1995 resulted from increased sales of ON-BOARD systems. Also, last year's
results included the impact of the low margin Maverick Missile Program
which was completed in the first quarter of 1994.
Research and development expenditures increased $209 thousand in the first
half of 1995 compared with the same period last year. Selling, general and
administrative expense increased by $2.1 million in the first half of 1995
versus the first half of 1994. This increase is partially related to the
increased expenses associated with higher sales.
Operating income increased by $3.4 million compared with the second quarter
of 1994. Operating income for the first six months of 1995 increased by
$7.1 million compared with the same period a year ago. Higher 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 $709 thousand in
the first half of 1995 compared with the same period last year.
Liquidity and Capital Resources
Cash provided by operating activities for the first half of 1995 was
$6.7 million compared with $3.4 million for the comparable period last
year. Capital expenditures for the first half of 1995 increased by
$800 thousand compared to the first half 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 half of 1995.
Cash dividends paid to stockholders during the first half of 1995 were
$2.1 million.
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. Submission of Matters to a Vote of Security Holders
The Company's Annual Meeting of Stockholders was held on
April 20, 1995. Proposal I submitted to a vote of security
holders at the meeting was the election of Directors. The
following Directors, being all the Directors of the Corporation,
were elected at the meeting, with the number of votes cast for
each Director or withheld from each Director being set forth
after his respective name:
Name Votes For Votes Withheld
R. Schorr Berman 8,027,130 580,035
Frank Gabron 8,026,530 580,635
Milton C. Lauenstein 8,026,530 580,635
Robert J. Lepofsky 8,025,990 581,175
Marvin G. Schorr 8,026,690 580,475
Wickham Skinner 8,026,930 580,235
Mark S. Wrighton 8,026,730 580,435
No abstentions or broker non-votes were recorded.
Proposal II submitted to a vote of security holders at the
meeting was an amendment of the Company's Certificate of
Incorporation to increase the number of authorized shares of
Common Stock from 10,000,000 shares to 30,000,000 shares. Votes
cast were as follows:
For Against Abstain No Vote
6,752,258 1,753,201 101,705 1
The proposal was approved.
Proposal III submitted to a vote of security holders at the
meeting was an amendment of the company's Certificate of
Incorporation to provide for an increase in the number of
authorized shares of Preferred Stock from 2,000,000 to 5,000,000.
Votes cast were as follows:
For Against Abstain No Vote
4,600,506 2,565,826 109,858 1,330,975
The proposal was not approved as a 51% majority was not obtained.
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HELIX TECHNOLOGY CORPORATION
PART II. OTHER INFORMATION
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 June 30, 1995.
Page 10
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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)
July 14, 1995 Stephen D. Allison
By:
Date Stephen D. Allison
Vice President and
Chief Financial Officer
On-Board is a registered trademark of Helix Technology Corporation.
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<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 11,217
<SECURITIES> 0
<RECEIVABLES> 12,609
<ALLOWANCES> (153)
<INVENTORY> 12,261
<CURRENT-ASSETS> 38,980
<PP&E> 24,155
<DEPRECIATION> (15,925)
<TOTAL-ASSETS> 53,499
<CURRENT-LIABILITIES> 9,861
<BONDS> 0
<COMMON> 9,850
0
0
<OTHER-SE> 33,214
<TOTAL-LIABILITY-AND-EQUITY> 53,499
<SALES> 56,184
<TOTAL-REVENUES> 56,184
<CGS> 31,190
<TOTAL-COSTS> 11,262
<OTHER-EXPENSES> (1,060)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 14,792
<INCOME-TAX> 5,473
<INCOME-CONTINUING> 9,319
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 9,319
<EPS-PRIMARY> 0.93
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