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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 March 29, 1996.
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 29, 1996
$1.00 par value 9,796,144 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
Mar. 29, 1996 Dec. 31, 1995
(in thousands) Notes (unaudited) (audited)
ASSETS
Current:
Cash and cash equivalents $ 25,036 $ 21,697
Receivables - net of allowances 19,958 17,974
Inventories 4 12,744 12,122
Deferred income taxes 3 3,039 3,039
Other current assets 649 556
Total Current Assets 61,426 55,388
Property, plant and equipment at cost 25,721 25,387
Less: accumulated depreciation (17,873) (17,061)
Net property, plant and equipment 7,848 8,326
Other assets 5,494 5,360
TOTAL ASSETS $ 74,768 $ 69,074
LIABILITIES AND STOCKHOLDERS' EQUITY
Current:
Accounts payable $ 7,715 $ 6,558
Payroll and compensation 3,106 3,755
Retirement costs 1,584 1,359
Income taxes 4,244 4,756
Other accrued liabilities 482 705
Total Current Liabilities 17,131 17,133
Deferred income taxes 3 388 388
Commitments - -
Stockholders' Equity:
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 and outstanding: 9,796,144 in
1996 and 9,776,944 in 1995 9,796 9,777
Capital in excess of par value 4,523 3,659
Currency translation adjustment 1,178 1,307
Retained earnings 41,752 36,810
Total Stockholders' Equity 57,249 51,553
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 74,768 $ 69,074
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)
For the 13 weeks ended
(in thousands except per share data) Notes Mar. 29, 1996 Mar. 31, 1995
Net Sales $40,206 $27,154
Costs and expenses:
Cost of sales 21,239 15,070
Research and development 1,627 1,122
Selling, general and administrative 6,089 4,678
28,955 20,870
Operating income 11,251 6,284
Joint venture income 401 508
Other 220 90
Income before taxes 11,872 6,882
Income taxes 3 4,482 2,546
Net income $ 7,390 $ 4,336
Net income per common share $ 0.74 $ 0.43
Average shares and equivalents 10,008 9,990
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 13 weeks ended
(in thousands) Mar. 29, 1996 Mar. 31, 1995
Cash flows from operating activities:
Net income $ 7,390 $ 4,336
Adjustments to reconcile net income to net
cash provided (used) by operating activities:
Depreciation and amortization 1,032 579
Undistributed earnings of joint venture, other (263) (148)
Net change in operating assets and liabilities (A) (1,925) 1,591
Net cash provided by operating activities 6,234 6,358
Cash flows from investing activities:
Capital expenditures (554) (755)
Net cash used by investing activities (554) (755)
Cash flows from financing activities:
Decrease in capital lease obligations - (11)
Net cash provided by employee stock plans 108 17
Cash dividends paid (2,449) (1,064)
Net cash used by financing activities (2,341) (1,058)
Increase in cash and cash equivalents 3,339 4,545
Cash and cash equivalents, at the beginning of
the period 21,697 8,050
Cash and cash equivalents, at the end of
the period $25,036 $12,595
(A) Change in operating assets and liabilities:
(Increase)/decrease in accounts receivable $(1,984) $(1,452)
(Increase)/decrease in inventories (622) (1,566)
(Increase)/decrease in other current assets (93) (18)
Increase/(decrease) in accounts payable 1,157 1,692
Increase/(decrease) in other accrued expenses (383) 2,935
Net change in operating assets and
liabilities $(1,925) $ 1,591
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 ended March 29, 1996, and March 31, 1995,
contain all adjustments (consisting only of normal recurring adjustments)
necessary to present fairly the financial position as of March 29, 1996,
and December 31, 1995, and the results of operations and cash flows for the
periods ended March 29, 1996, and March 31, 1995.
The results of operations for the three-month period ended March 29, 1996,
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 ended March 29, 1996,
and March 31, 1995, 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. Certain reclassifications
have been made to prior years' consolidated statements of cash flow to
conform with the current presentation.
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 $4,482,000 and
$2,546,000 for the three-month periods ended March 29, 1996, and March 31,
1995, 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 29, 1996, and
March 31, 1995, include the federal tax benefit on export income of the
FSC.
The effective income tax rate for the three-month periods ended March 29,
1996, and March 31, 1995, was 37.75% and 37.0%, 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) March 29, 1996 Dec. 31, 1995
Finished goods $ 4,299 $ 3,870
Work in process 7,237 7,340
Materials and parts 1,208 912
Net inventories $12,744 $12,122
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
Net sales for the quarter increased 48% to $40.2 million compared with
$27.2 million a year ago. The growth in revenues resulted primarily from
record sales of the Company's products and services used principally by
semiconductor manufacturers worldwide.
Gross margin increased 57% compared to the comparable period one year ago.
Gross profit percentage for the quarter was 47.2% compared with 44.5% a
year ago.
Research and development expenditures increased $505 thousand in the first
quarter of 1996 compared with the same period last year. Selling, general
and administrative expense increased by $1.4 million in the first quarter
of 1996 versus the first quarter of 1995. This increase in Selling,
general and administrative expense is attributable to increases in variable
selling expenses, product marketing and hiring costs.
Operating income increased by $5.0 million compared with the first quarter
of 1995. Higher sales coupled with continuing investments to improve
operational efficiencies are the primary reasons for the increase in
operating income.
Income from the Company's joint venture in Japan decreased $107 thousand in
the first quarter of 1996 compared with the same period a year ago.
However, income increased by $136 thousand compared to the fourth quarter
of 1995.
The Company's provision for income taxes was $4.5 million and $2.5 million
for the first quarter of 1996 and 1995, respectively. The effective tax
rate for the three-month periods ended March 29, 1996, and March 31, 1995,
was 37.75% and 37.0%, respectively. The difference between the statutory
federal rate and the Company's effective tax rate is due to state and
foreign income taxes.
Liquidity and Capital Resources
Cash provided by operating activities for the first quarter of 1996 was
$6.2 million compared with $6.4 million for the comparable period last
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 first quarter of 1996.
Cash dividends paid to stockholders during the first quarter of 1996 were
$2.4 million or $0.25 per common share. The Company announced an increase
in the quarterly cash dividend to $0.35 per common share payable in the
second quarter.
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 24, 1996.
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).
27 Financial Data Schedule (EDGAR version only)
Item 6(b). Reports on Form 8-K
No Form 8-K was required to be filed during the quarter
ended March 29, 1996.
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: April 19, 1996 By: Stephen D. Allison
Vice President and
Chief Financial Officer
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