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<PAGE> 1
FORM 10-Q/A
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
AMENDED REPORT
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934.
For the quarterly period 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 1-5601
AMERICAN PRECISION INDUSTRIES INC.
----------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 16-1284388
-------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2777 WALDEN AVENUE, BUFFALO, NEW YORK 14225
- -------------------------------------- ---------
(Address of principal executives offices) (Zip Code)
(716) 684-9700
--------------
(Registrant's telephone number, including area 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 .
--- ---
Number of shares of outstanding stock
on May 3, 1996 7,176,704
<PAGE> 2
AMERICAN PRECISION INDUSTRIES INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF EARNINGS
----------------------------------
(Unaudited)
<TABLE>
<CAPTION>
First Quarter Ended
--------------------------------------------------
1996 1995
March March
--------------------- ---------------------
<S> <C> <C>
Net Sales $ 21,948,000 $ 19,222,000
Investment Income 74,000 67,000
--------------------- ---------------------
Revenues 22,022,000 19,289,000
--------------------- ---------------------
Costs and Expenses
Cost of products sold 14,568,000 12,968,000
Selling and administrative 4,859,000 4,307,000
Research and product development 314,000 303,000
Interest and debt expense 140,000 58,000
--------------------- ---------------------
19,881,000 17,636,000
--------------------- ---------------------
Earnings Before Income Taxes 2,141,000 1,653,000
Federal and State Income Taxes 742,000 611,000
--------------------- ---------------------
Net Earnings $ 1,399,000 $ 1,042,000
===================== =====================
Net Earnings per Share $0.20 $0.15
=====================
=====================
Dividends Declared per Share $0.0650 $0.0625
=====================
=====================
Average Shares Outstanding 7,142,000 7,064,000
===================== =====================
</TABLE>
<PAGE> 3
AMERICAN PRECISION INDUSTRIES
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
- --------------------------
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
March December
--------------------- --------------------
<S> <C> <C>
Assets
Current Assets
Cash and cash equivalents $ 1,363,000 $ 2,486,000
Accounts receivable less allowance for doubtful
accounts of $283,000 and $264,000 14,158,000 12,691,000
Marketable securities 2,021,000 3,493,000
Inventories 12,115,000 10,589,000
Prepaid expenses 921,000 967,000
Deferred income tax benefit 1,394,000 1,389,000
--------------------- --------------------
Total Current Assets 31,972,000 31,615,000
--------------------- --------------------
Investments 6,105,000 6,277,000
Other Assets
Cost in excess of net assets acquired 2,119,000 2,153,000
Prepaid pension cost 2,140,000 2,140,000
Net cash value of life insurance 2,226,000 2,222,000
Other 1,208,000 1,115,000
--------------------- --------------------
Total Other Assets 7,693,000 7,630,000
--------------------- --------------------
Property, Plant and Equipment
Land 211,000 211,000
Building and improvements 6,232,000 6,183,000
Machinery, equipment and furniture 22,492,000 22,265,000
Construction in process 2,173,000 1,450,000
--------------------- --------------------
31,108,000 30,109,000
Less accumulated depreciation 18,345,000 17,840,000
--------------------- --------------------
Net Property, Plant and Equipment 12,763,000 12,269,000
--------------------- --------------------
$ 58,533,000 $ 57,791,000
===================== ====================
</TABLE>
<PAGE> 4
AMERICAN PRECISION INDUSTRIES
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
- --------------------------
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
March December
--------------------- -------------------
<S> <C> <C>
Liabilities and Shareholders' Equity
Current Liabilities
Short-term borrowings $ 770,000 $ 2,602,000
Accounts payable 6,759,000 5,136,000
Accrued compensation and payroll taxes 2,701,000 3,566,000
Other accrued expenses 871,000 757,000
Dividends payable 465,000 463,000
Current portion of long-term obligations 655,000 628,000
Federal and state income taxes 662,000 --
--------------------- --------------------
Total Current Liabilities 12,883,000 13,152,000
--------------------- --------------------
Deferred Income Taxes 1,251,000 1,251,000
Other Noncurrent Liabilities 378,000 413,000
Long-Term Obligations, less current portion 8,476,000 8,628,000
Shareholders' Equity
Common stock, par value
$.66-2/3 per share:
Authorized - 10,000,000 shares
Issued - 7,529,689 and 7,502,000 shares 5,020,000 5,001,000
Additional paid-in capital 9,718,000 9,532,000
Retained earnings 23,630,000 22,629,000
Net unrealized gain on marketable securities
and investments 15,000 23,000
--------------------- --------------------
38,383,000 37,185,000
Less cost of 374,262 treasury shares 2,838,000 2,838,000
--------------------- --------------------
Total Shareholders' Equity 35,545,000 34,347,000
--------------------- --------------------
$ 58,533,000 $ 57,791,000
===================== ====================
</TABLE>
<PAGE> 5
AMERICAN PRECISION INDUSTRIES
AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
- ------------------------------------
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
---------------------------------------------
1996 1995
MARCH MARCH
-------------------- --------------------
Cash Flows from Operating Activities
<S> <C> <C>
Net Income $ 1,399,000 $ 1,041,000
Adjustments to reconcile net income to cash and
and cash equivalents provided by operating activities:
Depreciation and amortization 781,000 675,000
Gain on sale of investments and fixed assets 10,000 --
Increase in supplemental benefit program 32,000 34,000
Recognition of pension income under FASB #87 -- (78,000)
Stock compensation programs 298,000 --
Change in various allowance accounts 2,000 (16,000)
(Increase) Decrease in:
Accounts receivable (1,486,000) (757,000)
Inventories (1,459,000) (55,000)
Prepaid expenses 60,000 (90,000)
Deferred income taxes (25,000) --
Other assets, net (130,000) (119,000)
Increase (Decrease) in:
Accounts payable 1,669,000 (462,000)
Accrued expenses (751,000) (143,000)
Federal and state income taxes 662,000 598,000
Other noncurrent liabilities (333,000) (96,000)
-------------------- --------------------
Net cash provided by Operating Activities 729,000 532,000
-------------------- --------------------
Cash Flows from Investing Activities
Purchases of investments and marketable securities (20,000) --
Additions to property, plant and equipment (1,228,000) (731,000)
Proceeds from investments and sale of fixed assets 1,641,000 1,079,000
-------------------- --------------------
Net cash provided by Investing Activities 393,000 348,000
-------------------- --------------------
Cash Flows from Financing Activities
Exercise of stock options 205,000 3,000
Payment of long-term obligations, including current maturities (155,000) (92,000)
Dividends paid (463,000) (441,000)
Short-term borrowings (1,832,000) (1,700,000)
-------------------- --------------------
Net cash (used) by Financing Activities (2,245,000) (2,230,000)
-------------------- --------------------
Net Decrease in Cash and Cash Equivalents (1,123,000) (1,350,000)
Cash and Cash Equivalents at Beginning of Year 2,486,000 2,135,000
-------------------- --------------------
Cash and Cash Equivalents at End of Period $ 1,363,000 $ 785,000
==================== ====================
</TABLE>
<PAGE> 6
AMERICAN PRECISION INDUSTRIES
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
First Quarter Ended March 29, 1996
----------------------------------
Note A Consolidated Financial Statements
- ------ ---------------------------------
The Consolidated Balance Sheet as of March 29, 1996, and the
Consolidated Statement of Earnings, and the Consolidated
Statement of Cash Flows for the periods ended March 29, 1996 and
March 31, 1995 have been prepared by the Company without audit.
In the opinion of management, all adjustments (which include only
normal recurring adjustments) necessary to present fairly the
financial position, results of operations, and changes in cash
flow at March 29, 1996 and for all periods presented have been
made.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with Generally
Accepted Accounting Principles have been condensed or omitted. It
is suggested these condensed consolidated financial statements be
read in conjunction with the financial statements and the notes
thereto included in the Company's December 29, 1995 Annual Report
to Shareholders.
NOTE B Cash, Cash Equivalents, and Marketable Securities
- ------ -------------------------------------------------
Cash, cash equivalents, and marketable securities includes
$2,175,000 of restricted funds held in an escrow account as part
of the Management Agreement between the Company and Gettys
Corporation. These funds will be applied to the purchase price of
the net assets of Gettys Corporation at the time the Company
acquires those net assets pursuant to the exercise of the put or
call option provision of the Management Agreement.
Note C Inventories
- ------ -----------
It is not practical to determine raw material, work in process,
and finished goods inventories during interim periods.
<PAGE> 7
Note D Long-Term Obligations
- ------ ---------------------
<TABLE>
<CAPTION>
March 29, 1996
------------------------------------
Outstanding Current Long-Term
----------- ------- ---------
<S> <C> <C> <C>
Industrial Revenue
Bonds $7,999,000 $ 475,000 $7,524,000
Supplemental Benefit
Program 1,132,000 180,000 952,000
---------- ---------- ----------
$9,131,000 $ 655,000 $8,476,000
========== ========== ==========
</TABLE>
Note E Earnings Per Share
- ------ ------------------
Earnings per share are based on the weighted average number of
shares outstanding.
Note F Subsequent Events
- ------ -----------------
On April 1, 1996 and April 19, 1996, the Company completed the
purchase of certain assets of Ketema, Inc. ("Ketema") and Gettys
Corporation and Gettys Property Corporation ("Gettys"),
respectively. These acquisitions were primarily financed through
a $20,000,000 credit agreement between the Company and Marine
Midland Bank. Both transactions will be accounted for under the
purchase method of accounting.
<PAGE> 8
AMERICAN PRECISION INDUSTRIES
AND SUBSIDIARIES
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.
AMERICAN PRECISION INDUSTRIES INC.
/s/ John M. Murray
-------------------------------------------
John M. Murray
Vice President Finance and Treasurer
/s/ Thomas M. Huebsch
-------------------------------------------
Thomas M. Huebsch
Chief Accounting Officer
June 7, 1996
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