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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 September 29, 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 September 29, 1995
$1.00 par value 9,776,944 Shares
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HELIX TECHNOLOGY CORPORATION
Form 10-Q
INDEX
Page
Part I. FINANCIAL INFORMATION
Item 1. Financial Statement 3-7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 8
Part II. OTHER INFORMATION
Item 6 (a). Exhibits 9
Item 6 (b). Reports on Form 8-K 9
Signature 10
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HELIX TECHNOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
Sept. 29, 1995 Dec. 31, 1994
(in thousands) (unaudited) (audited)
ASSETS
Current:
Cash and cash equivalents $16,209 $ 8,050
Receivables - net of allowances 16,124 12,219
Inventories (Note 4) 11,768 9,556
Deferred income taxes (Note 3) 2,460 2,460
Other current assets 524 586
Total Current Assets 47,085 32,871
Property, plant and equipment at cost 24,691 22,750
Less: accumulated depreciation (16,487) (14,913)
Net property, plant and equipment 8,204 7,837
Other assets 5,943 4,678
TOTAL ASSETS $61,232 $45,386
LIABILITIES AND STOCKHOLDERS' EQUITY
Current:
Accounts payable $ 6,270 $ 4,896
Payroll and compensation 2,468 3,305
Retirement costs 1,070 610
Income taxes 3,092 1,182
Other accrued liabilities 627 450
Total Current Liabilities 13,527 10,443
Deferred income taxes (Note 3) 562 562
Capitalized lease obligations - 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: 9,852,992 in 1995 and
9,667,642 in 1994 9,853 9,668
Capital in excess of par value 4,724 2,157
Treasury stock (76,048 shares) (2,553) -
Currency translation adjustment 2,029 1,043
Retained earnings 33,090 21,477
Total Stockholders' Equity 47,143 34,345
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $61,232 $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 nine-month periods ended
September 29, 1995 and September 30, 1994
(unaudited)
(in thousands except per share data)
Sept. 29, 1995 Sept. 30, 1994
Three Nine Three Nine
Months Months Months Months
Net Sales $32,253 $88,437 $22,355 $62,391
Costs and expenses:
Cost of sales 17,745 48,935 12,999 37,430
Research and development 1,034 3,262 1,186 3,205
Selling, general and
administrative 5,046 14,080 3,910 10,848
23,825 66,277 18,095 51,483
Operating income 8,428 22,160 4,260 10,908
Joint venture income 249 1,127 210 379
Other 126 308 10 (71)
Income before taxes 8,803 23,595 4,480 11,216
Income taxes (Note 3) 3,301 8,774 1,623 3,981
Net income $ 5,502 $14,821 $ 2,857 $ 7,235
Net income per common share $ 0.55 $ 1.48 $ 0.29 $ 0.74
Weighted average shares 10,014 10,006 9,898 9,818
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 39 weeks ended
Sept. 29 Sept. 30
(in thousands) 1995 1994
Cash flows from operating activities:
Net income $14,821 $7,235
Adjustments to reconcile net income to net
cash provided (used) by operating activities:
Depreciation and amortization 1,861 1,495
Undistributed earnings of joint venture, other (279) 130
Net change in operating assets and liabilities (A) (2,971) (2,922)
Net cash provided by operating activities 13,432 5,938
Cash flows from investing activities:
Capital expenditures net of property sold or retired (2,228) (1,226)
Net cash used by investing activities (2,228) (1,226)
Cash flows from financing activities:
Treasury Stock - Exercise of Employee Stock Options (2,553) -
Decrease in capital lease obligations (36) (31)
Net cash provided by employee stock plans 2,752 717
Cash dividends paid (3,208) (1,728)
Net cash used by financing activities (3,045) (1,042)
Increase/(decrease) in cash and cash equivalents 8,159 3,670
Cash and cash equivalents, at the beginning of
the period 8,050 1,677
Cash and cash equivalents, at the end of the period $16,209 $ 5,347
(A) Change in operating assets and liabilities:
(Increase)/decrease in accounts receivable $(3,905) $(3,657)
(Increase)/decrease in inventories (2,212) (1,719)
(Increase)/decrease in other current assets 62 290
Increase/(decrease) in accounts payable 1,374 1,742
Increase/(decrease) in other accrued expenses 1,710 422
Net change in operating assets and liabilities $(2,971) $(2,922)
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 September 29, 1995, and September 30,
1994, contain all adjustments (consisting only of normal recurring
adjustments) necessary to present fairly the financial position as of
September 29, 1995, and December 31, 1994, and the results of operations
and cash flows for the periods ended September 29, 1995, and September 30,
1994.
The results of operations for the nine-month period ended September 29,
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 nine-month periods ending September 29,
1995, and September 30, 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 $8,774,000 and
$3,981,000 for the nine-month periods ended September 29, 1995, and
September 30, 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 nine-month periods ended September 29, 1995,
and September 30, 1994, include the federal tax benefit on export income of
the FSC.
The effective income tax rate for the nine-month periods ended
September 29, 1995, and September 30, 1994, was 37.2% and 35.5%,
respectively.
The major components of deferred tax assets and liabilities are
depreciation and inventory valuation, 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) Sept. 29, 1995 Dec. 31, 1994
Finished goods $ 4,007 $2,404
Work in process 6,642 6,115
Materials and parts 1,119 1,037
Net inventories $11,768 $9,556
Inventories are stated at the lower of cost or 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 $32.3 million compared with $22.4 million a year
ago. Sales for the first nine months of 1995 were $88.4 million compared
with $62.4 million in the first nine months of 1994. Record shipments of
ON-BOARD vacuum pump systems were the primary contributor to increased
sales.
Gross profit percentage for the quarter was 45.0% compared with 41.9% a
year ago. Gross profit percentage for the first nine months was 44.7%
compared with 40.0% for the same period last year. The primary reason for
improved gross profit margins in 1995 is increased sales of ON-BOARD vacuum
products.
Research and development expenditures increased $57 thousand in the first
nine months of 1995 compared with the same period last year. Selling,
general and administrative expense increased by $3.2 million in the first
nine months of 1995 versus the first nine months of 1994. This increase in
Selling, general and administrative expense is related to the increased
expenses associated with higher sales.
Operating income in the third quarter increased by $4.2 million compared
with the Operating income in the same period a year ago. Operating income
for the first nine months of 1995 increased by $11.3 million compared with
the same period a year ago. Higher sales coupled with operational
improvements are the primary reason for the increase in operating income.
Income from the Company's joint venture in Japan increased $748 thousand in
the first nine months of 1995 compared with the same period last year.
Liquidity and Capital Resources
Cash provided by operating activities for the first nine months of 1995 was
$13.4 million compared with $5.9 million for the comparable period last
year. Capital expenditures for the first nine months of 1995 increased by
$1.0 million compared to the prior year.
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 third quarter of 1995.
Cash dividends paid to stockholders during the first nine months of 1995
were approximately $3.2 million versus $1.7 million during the first nine
months of last year.
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 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 September 29, 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)
Date: October 13, 1995 By: Stephen D. Allison
Stephen D. Allison
Vice President and Chief Financial Officer
On-Board is a registered trademark of Helix Technology Corporation.
Page 10
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<PERIOD-END> SEP-29-1995
<CASH> 16,209
<SECURITIES> 0
<RECEIVABLES> 16,273
<ALLOWANCES> (149)
<INVENTORY> 11,768
<CURRENT-ASSETS> 47,085
<PP&E> 24,691
<DEPRECIATION> (16,487)
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<CURRENT-LIABILITIES> 13,527
<BONDS> 0
<COMMON> 9,853
0
0
<OTHER-SE> 37,290
<TOTAL-LIABILITY-AND-EQUITY> 61,232
<SALES> 88,437
<TOTAL-REVENUES> 88,437
<CGS> 48,935
<TOTAL-COSTS> 17,342
<OTHER-EXPENSES> (1,435)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 23,595
<INCOME-TAX> 8,774
<INCOME-CONTINUING> 14,821
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 14,821
<EPS-PRIMARY> 1.48
<EPS-DILUTED> 1.48
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