UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended May 31, 1998
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: 0-1460
ANDERSEN GROUP, INC.
(Exact name of Registrant as specified in its charter)
DELAWARE 13-4008747
(State or other jurisdiction of incorporation (I.R.S. Employer
or organization) Identification No.)
515 Madison Avenue, New York, New York 10022
(Address of principal executive offices) (Zip Code)
(212) 826-8942
(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 ____
As of July 6, 1998, there were 1,935,378 shares of the Registrant's no par
value common stock outstanding.
Title Outstanding
Common Stock, $0.01 par value per share Authorized 6,000,000 shares;
Issued 1,958,478
ANDERSEN GROUP, INC.
FORM 10-Q
TABLE OF CONTENTS
Page No.
Part I - Financial Information
Item 1 - Financial Statements:
Consolidated Balance Sheets
May 31, 1998 and February 28, 1998 3
Consolidated Statements of Operations for the
Three Months Ended May 31, 1998 and 1997 4
Consolidated Statements of Cash Flows for the
Three Months Ended May 31, 1998 and 1997 5
Notes to Consolidated Financial Statements 6
Item 2 - Management's Discussion and Analysis of
Financial Condition and Results of Operations 8
Item 3 - Quantitative and Qualitative Disclosures About Market Risk 9
Part II - Other Information
Item 1 - Legal Proceedings 10
Item 4 - Submission of Matters to a Vote of Security Holders 11
Item 6 - Exhibits and Reports on Form 8-K 11
Signatures 12
<PAGE>
Part I. Financial Information
Item 1. Financial Statements
ANDERSEN GROUP, INC.
Consolidated Balance Sheets
(In thousands)
May 31, 1998 February 28, 1998
------------ -----------------
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $ 4,160 $ 2,516
Marketable securities 9,607 9,001
Receivable from sale of subsidiary 621 3,521
Accounts and other receivables less
allowances of $133 and $130 4,588 3,870
Inventories 5,508 8,076
Prepaid expenses and other assets 158 142
-------- --------
Total current assets 24,642 27,126
-------- --------
Property, plant and equipment 21,940 21,854
Accumulated depreciation (12,690) (12,411)
-------- --------
Property, plant and equipment, net 9,250 9,443
-------- --------
Prepaid pension expense 4,735 4,665
Investments 1,830 1,815
Other assets 1,961 1,722
-------- --------
$42,418 $44,771
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $ 595 $ 595
Short-term borrowings 952 2,183
Accounts payable 646 951
Other current liabilities 2,726 3,352
Deferred income taxes 1,122 1,286
-------- --------
Total current liabilities 6,041 8,367
-------- --------
Long-term debt, less current maturities 4,407 4,459
Subordinated note payable,
net of unamortized discount 7,307 7,300
Other liabilities 1,963 1,888
Deferred income taxes 2,567 2,561
-------- --------
Total liabilities 22,285 24,575
-------- --------
Stockholders' equity:
Cumulative convertible preferred stock 4,776 4,769
Common stock 2,103 2,103
Additional paid-in capital 3,249 3,248
Retained earnings 10,107 10,158
Treasury stock (102) (82)
-------- --------
Total stockholders' equity 20,133 20,196
-------- --------
$42,418 $44,771
======== ========
See accompanying notes to consolidated financial statements.
<PAGE>
ANDERSEN GROUP, INC.
Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
Three months ended
May 31, 1998 May 31, 1997
------------ ------------
Revenues:
Net sales $ 7,685 $ 6,048
Investment and other income 146 290
-------- --------
7,831 6,338
--------- --------
Costs and expenses:
Cost of sales 5,170 3,975
Selling, general and administrative 1,624 1,438
Research and development 487 345
Interest expense 461 228
-------- --------
7,742 5,986
-------- --------
Income from continuing operations before income taxes 89 352
Income tax expense 36 135
-------- --------
Income from continuing operations 53 217
Income from discontinued operations net of income taxes - 50
-------- --------
Net income 53 267
Preferred dividends (103) (126)
-------- --------
Income (loss) applicable to common shares ($ 50) $ 141
======== ========
Earnings (loss) per common share, basic and diluted:
Continuing operations ($0.03) $0.05
Discontinued operations 0.00 0.02
-------- --------
Net income (loss) ($0.03) $0.07
======== ========
See accompanying notes to consolidated financial statements.
<PAGE>
ANDERSEN GROUP, INC.
Consolidated Statements of Cash Flows
(In thousands)
(unaudited)
Three months ended
May 31, 1998 May 31, 1997
------------ ------------
Cash flows from operating activities:
Net income $ 53 $ 267
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation, amortization and accretion 367 384
Deferred income taxes (158) 23
Pension income (70) (61)
Net losses (gains) from marketable securities
and investments 229 (78)
Purchases of marketable securities (1,405) (512)
Proceeds from sales of marketable securities 570 -
Proceeds from redemption of Digital Graphix
investment - 1,066
Changes in operating assets and liabilities:
Accounts and notes receivable (718) (1,056)
Inventories 2,568 (538)
Prepaid expenses and other assets (18) 354
Accounts payable (305) 106
Accrued expenses and other long-term obligations (112) 1
-------- --------
Net cash provided by (used in) operating
activities 1,001 (44)
-------- --------
Cash flows from investing activities:
Purchases of property and equipment, net (343) (714)
Proceeds from sale of subsidiary 2,400 -
-------- --------
Net cash provided by (used in) investing
activities 2,057 (714)
-------- --------
Cash flows from financing activities:
Principal payments on long-term debt (52) (105)
Issuance (repayment) of short term debt, net (1,231) 510
Stock options exercised 23 -
Purchase of treasury stock (42) -
Preferred dividends paid (112) -
-------- --------
Net cash provided by (used in) financing
activities (1,414) 405
-------- --------
Net increase (decrease) in cash and cash
equivalents 1,644 (353)
Cash and cash equivalents--beginning of period 2,516 3,219
-------- --------
Cash and cash equivalents--end of period $4,160 $2,866
======== ========
See accompanying notes to consolidated financial statements.
<PAGE>
ANDERSEN GROUP, INC.
Notes to Consolidated Financial Statements
(1) Accounting Policies
The accompanying interim financial statements and related notes should
be read in conjunction with the Consolidated Financial Statements of Andersen
Group, Inc. and related notes as contained in the Annual Report on Form 10-K for
the fiscal year ended February 28, 1998. The interim financial statements
include all adjustments (consisting only of normal recurring adjustments) and
accruals necessary in the judgment of management for a fair presentation of such
statements. In addition, certain reclassifications have been made to the prior
period financial information so that it conforms to the current period
presentation.
(2) Marketable Securities
Marketable securities consisted of the following (in thousands):
May 31, 1998 February 28, 1998
------------ -----------------
Common stock of savings banks $6,711 $5,611
Common stock of Centennial Cellular - 430
C A Emerging Russia Fund 1,767 2,422
Portfolio of Ukraine stocks 232 314
Common stock of Bank Handlowy 378 348
Renaissance Russian Bond Fund 503 -
Valuation reserve - foreign investments (475) (617)
Municipal bonds 491 493
-------- --------
$9,607 $9,001
======== ========
(3) Inventories
Inventories consisted of the following (in thousands):
May 31, 1998 February 28, 1998
------------ -----------------
Raw material $1,862 $2,989
Work in process 3,979 6,509
Finished goods 2,115 657
-------- --------
7,956 10,155
LIFO Reserve 2,448 2,079
-------- --------
$ 5,508 $8,076
======== ========
(4) Discontinued Operations
Effective February 28, 1998, the Company sold the net assets of Ney
Ultrasonics Inc., and recorded a net gain of $97,000 after income taxes. During
the quarter ended May 31, 1998, the Company received $2,400,000 of the purchase
price and an additional $500,000 was being held by an escrow agent pending a
review of the year-end financial information and finalization of the purchase
price. While this process has not yet been completed, the Company expects to
receive less consideration from the sale than originally estimated. However, the
estimate of the net gain on sale has not changed because, in the opinion of
management, accruals made at the Company's fiscal year end will be adequate to
cover the change in consideration.
(5) Income Taxes
Income tax expense represents an estimate of the effective income tax
rate for the current fiscal year.
(6) Dividends
During February 1998, the Company amended its certificate of
incorporation to modify the terms of the Company's Series A Preferred Stock
(Preferred Stock) to provide for an annual fixed dividend rate of $1.50 per
share of Preferred Stock and to eliminate the mandatory redemption feature of
the preferred stock.
(7) Earnings Per Share
Earnings per share are computed based on the weighted average number of
common and common equivalent shares outstanding. Diluted net income per share
assumes full conversion of all convertible securities into common stock at the
later of the beginning of the year or date of issuance, unless antidilutive. For
the three-month period ended May 31, 1998, the effect of such conversions has
been antidilutive.
(8) Business Segments and Export Sales
During the three months ended May 31, 1998, the Company operated in two
continuing segments, Electronics, which comprises the operations of The J.M. Ney
Company (J.M. Ney), and Corporate, which includes the Company's investment, real
estate and corporate administrative activities. Operating income consists of net
sales, investment and other income, less cost of sales and selling, general and
administrative expenses directly allocated to the industry segments. Corporate
revenues consist of investment and other income not attributable to J.M. Ney.
Corporate identifiable assets include marketable securities and short-term
investments, and assets not directly attributable to J.M. Ney.
Summarized financial information for business segments is as follows (in
thousands):
Three months ended: May 31, 1998 May 31, 1997
------------ ------------
Revenues:
Electronics $7,661 $6,046
Corporate 170 292
-------- --------
$7,831 $6,338
-------- --------
Operating income (loss):
Electronics $1,036 $ 795
Corporate (486) (215)
-------- --------
$ 550 $ 580
-------- --------
Interest expense:
Electronics $ 342 $ 50
Corporate 119 178
-------- --------
$ 461 $ 228
-------- --------
Depreciation, amortization and accretion:
Electronics $ 331 $ 323
Ultrasonics - 23
Corporate 36 38
-------- --------
$ 367 $ 384
-------- --------
Capital expenditures:
Electronics $ 335 $ 711
Ultrasonics - 3
Corporate 8 -
-------- --------
$ 343 $ 714
-------- --------
As of: May 31, 1998 February 28, 1998
------------ -----------------
Identifiable assets:
Electronics $25,831 $25,337
Corporate 16,587 19,434
-------- --------
$42,418 $44,771
-------- --------
Export sales for the three months ended May 31, 1998 and 1997 were $1,091,000
and $1,054,000, respectively. Such sales were made primarily to customers in
Europe and the Pacific Rim.
During the three months ended May 31, 1998, sales to two customers accounted for
12.0% and 10.3% of net sales, respectively.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
REVENUES
Revenues for the three months ended May 31, 1998 totaled $7,831,000, which was a
23.6% increase from revenues from continuing operations during the prior fiscal
year's first quarter. The increase represents the net of 27.1% increase in net
sales and $144,000 decline in investment and other income.
Sales generated by J.M. Ney, the Company's wholly-owned manufacturer of
electronic materials and components, increased due to higher volumes of molded
contacts sold to customers in the automotive market, increased precious metal
materials sold into the dental implant market, and the impact of higher selling
prices for many of its products due to a significant increase in the market
price of palladium, a critical element in J.M. Ney's products. For the most
recent quarter, the average market price for palladium was approximately $315.00
per troy ounce, versus an average price of $160.00 per troy ounce during the
quarter ended May 31, 1997.
Investment and other income totaled $146,000 for the three months ended May 31,
1998, versus $290,000 of such income for the quarter ended May 31, 1997.
Significant components of these revenues during each period were as follows (in
thousands):
Three Months ended
May 31, 1998 May 31, 1997
------------ ------------
Net gains from domestic investment portfolio $ 334 $ 9
Net (losses) gains from Russian and
Eastern European portfolio (561) 70
Interest and dividends 82 48
Rental income 132 108
Other, net 159 55
------- --------
$ 146 $ 290
======== ========
The net gains from the domestic investment portfolio in the most recent
quarter represents unrealized appreciation of investment holdings, with the
exception of $140,000 of appreciation since February 28, 1998 relating to the
Company's investment in Centennial Cellular, which was sold during the quarter.
Net (losses) gains from the Russian and Eastern European portfolio for the three
month period ended May 31, 1998 and 1997 are presented net of a decrease of
$142,000 and an increase of $602,000, respectively, in valuation reserves
established to provide for liquidity and volatility concerns of these
investments. Other income during the most recent quarter includes approximately
$85,000 of charges by J.M. Ney to its refining customers to reflect the
significant increase of financing precious metal hedges for this aspect of the
business.
COST OF SALES
Cost of sales during the three months ended May 31, 1998 represented 67.3% of
net sales, versus cost of sales during the prior fiscal year's first quarter
which were 65.7% of net sales. The decline in average margin from 34.3% to 32.7%
is due primarily to higher costs for palladium, which were passed on in the form
of higher selling prices, but without the same degree of mark-up, and to product
mix of sales, which was more heavily weighted to sales of precious metal alloy
material than in the prior year's first quarter.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative expenses for the three months ended May 31,
1998 totaled $1,624,000, which is a 12.9% increase from the prior fiscal year's
first quarter. The increase was due to additional costs associated with higher
sales volume, including higher marketing and product management costs, and to
costs incurred in connection with computer systems enhancements to position
the Company to be Year 2000 compliant on a timely basis.
RESEARCH AND DEVELOPMENT EXPENSES
Research and development expenses for the three months ended May 31, 1998
increased by $142,000, or 41.2%, because of an increased commitment to
engineering and research projects, and as a result of lower allocations of these
costs to cost of sales.
INTEREST EXPENSE
Interest expense during the three months ended May 31, 1998 totaled $461,000,
versus $228,000 during the prior fiscal year. Of this amount, $342,000 was
incurred by J.M. Ney from $7.5 million of subordinated debt, high interest rate
palladium consignment leases to hedge certain manufacturing and refining
precious metal positions, and from various capitalized leases. The Company
incurred lower levels of interest as a result of prior year payments to reduce
outstanding balances of its 10 1/2% debentures and to repay certain IRB
obligations. The Company also incurred interest on a demand loan, which was
secured by a portion of the Company's portfolio of marketable securities.
INCOME TAX EXPENSE
Income taxes have been accrued based on estimated effective tax rates.
PREFERRED DIVIDENDS
For the three months ended May 31, 1998, dividends were accrued based upon the
revised terms, which provide for quarterly payments of dividends at the annual
rate of $1.50 per share. For the three months ended May 31, 1997, dividends were
accrued at the rate of $.4375 per preferred share in accordance with the former
terms of this security.
LIQUIDITY AND CAPITAL RESOURCES
At May 31, 1998 the Company's consolidated cash and marketable securities was
nearly $13.8 million, an increase of $2.25 million during the quarter. Reduced
inventory levels, and the collection of a portion of the purchase price from the
sale of Ney Ultrasonics provided the increased liquidity.
During the quarter, the Company made additional investments in its portfolio of
domestic savings bank stocks, and J.M. Ney made a short-term investment in a
Russian bond fund. At May 31, 1998, 33.3% of the Company's consolidated
stockholders' equity was invested in domestic common stocks of financial
institutions, while 21.0% of consolidated stockholders' equity is represented by
short-term and longer term investments in emerging markets of Russia, Ukraine
and Poland.
During the three months ended May 31, 1998, the market price of palladium, a
primary component in most of J.M. Ney's products, increased dramatically and
fluctuated from a low of $234.50 per ounce to a high of $417.00 per ounce due to
reduced shipments of palladium from Russia. While J.M. Ney believes its metals
hedging program and development of proprietary alloys and new metals
technologies will protect both its sales and earnings for the near term, there
can be no assurance that J.M. Ney will not suffer from adverse affects if this
market condition persists.
As a result of covenants contained in its borrowing agreement, J.M. Ney is
restricted from paying dividends or otherwise transferring funds to the Company
outside the ordinary course of business except as defined in certain covenants.
At May 31, 1998, J.M. Ney's working capital and net worth (net of liabilities
to the Company) totaled approximately $9.55 million and $7.11 million,
respectively. The Company believes that income generated from its investments
or funds generated from liquidation of existing investments, and permitted
payments from J.M. Ney will be sufficient to meet anticipated working capital
and debt service requirements.
Item 3. Quantitative and Qualitative About Market Risk
Not required.
<PAGE>
Part II. Other Information
Item 1. Legal Proceedings
Morton International, Inc. v. A.E. Staley Mfg. Co. et al. and Velsicol
Chemical Corp. v. A.E. Staley Mfg. Co. et al.
As previously reported in the Company's Form 10-K for the year ended February
28, 1997, in July 1996, two companion lawsuits were filed in the United States
District Court for the District of New Jersey, by various owners and operators
of the Ventron-Velsicol Superfund Site (Site). The lawsuits, which were
subsequently consolidated, were filed under the Comprehensive Environmental
Resource Compensation and Liability Act (CERCLA), the Resource Conservation and
Recovery Act, the New Jersey Spill Act and New Jersey common law, alleging that
the defendants (over 100 companies, including J.M. Ney) were generators of
certain wastes allegedly processed at the site. The lawsuits seek recovery of
costs incurred and a declaration of future liability for costs to be incurred by
the owners and operators in studying and remediating the Site.
Based on preliminary disclosure of information relating to the claims made by
plaintiffs and defendants, J.M. Ney, which produced and refined precious metals
used in dental amalgams, is one of the smaller parties to have had any
transactions with one of the plaintiff's predecessors in interest. However,
under both CERCLA and the New Jersey Spill Act, a party is jointly and severally
liable, unless there is a basis for divisibility. At this time, there is
insufficient information to determine the appropriate allocation of costs as
between or among the defendant group, if liability to the generator defendants
is ultimately proven. Moreover, because of the incomplete status of discovery,
the Company is unable to predict the probable outcome of the lawsuit, whether
favorable or unfavorable, and has no basis to ascertain a range of loss, should
any occur, with respect to an outcome that might be characterized as
unfavorable.
The Company continues to investigate whether any liability, which may accrue at
some future date, may be subject to reimbursement in whole or in part from
insurance proceeds. The Company intends to continue to vigorously defend the
lawsuit.
James S. Cathers and Sylvia Jean Cathers, his wife v. Kerr Corporation,
Whip-Mix Corporation, The J.M. Ney Company and Dentsply Corporation, Inc.
As previously reported in the Company's Form 10-Q for the Quarter ended August
31, 1997, in August 1997, J.M. Ney was included as a defendant in an asbestos
related civil action for negligence and product liability filed in the Court of
Common Pleas of Allegheny County, Pennsylvania, in which the Plaintiffs claim
damages in excess of $30,000 (the jurisdictional limit) from being exposed to
asbestos and asbestos products alleged to have been manufactured and supplied by
the defendants, including Ney's former Dental Division, while one of the
Plaintiffs worked in a dental lab from 1960 to 1986 at an unspecified location
in Pittsburgh, Pennsylvania. The Plaintiffs allege that this exposure to
asbestos and asbestos products caused the wrongful death of one of the
Plaintiffs from cancer (mesothelioma). The Plaintiffs have not provided any
specific allegations of facts as to which defendants may have manufactured or
supplied asbestos and asbestos products which are alleged to have caused the
injury.
The Company has determined that it has insurance that potentially covers this
claim and has called upon the insurance carriers to provide reimbursement of
defense costs and liability, should any arise. As of this date, the Company has
no basis to conclude that the litigation may be material to the Company's
financial condition or business. The Company intends to vigorously defend the
lawsuit.
Anthony Nicholas Georgiou, et al. v. Mobil Exploration and Producing
Services, Inc., Metromedia International Telecommunications, Inc., et al.
As previously reported in the Company's Form 10-K for the year ended
February 28, 1998, on January 14, 1998, Anthony Nicholas Georgiou, et al. v.
Mobil Exploration and Producing Services, Inc., Metromedia International
Telecommunications, Inc., et al., was filed in the United States District Court
for the Southern District of Texas. Plaintiffs claim that the defendants,
including Registrant and Oliver R. Grace, Jr. the Registrant's President and
Chief Executive Officer, interfered with plaintiffs' business relationships with
several companies involving certain oil exploration and production contracts in
Siberia and telecommunications contracts in the Russian Federation. The specific
counts are civil conspiracy, tortious interference with contractual
relationships and tortious interference with prospective contractual
relationships. Plaintiffs have alleged actual damages in excess of $500,000,000
and have sought punitive damages of three times alleged actual damages. The
Company filed its answer denying each of the substantive allegations of
wrongdoing contained in the complaint. In addition, the Company has moved to
dismiss this case in Texas against it for lack of personal jurisdiction.
The Company believes that this action against it will be dismissed for lack of
personal jurisdiction. If the action were not dismissed, the Company believes
that it has meritorious defenses and will continue to vigorously defend the
action. The Company is investigating whether any liability, which may accrue at
some future date, may be subject to reimbursement in whole or in part from
insurance proceeds. As of this date, the Company has no basis to conclude the
litigation may be material to the Company's financial condition or business.
Item 4. Submission of Matters to a Vote of Security Holders
(a) The Registrant's Annual Meeting of Stockholders was held on June 23,
1998 for the purpose of (i) electing Directors and (ii) the approval of
a merger of the Company into a wholly-owned Delaware subsidiary in
order to effect the change of the Company's state of incorporation (the
"Reincorporation").
(b) The following Directors were elected:
Oliver R. Grace, Jr.
Francis E. Baker
Peter N. Bennett
John S. Grace
Louis A. Lubrano
James J. Pinto
(c) The only other matter voted upon at the Annual Meeting was the
Reincorporation. The Company's Common and Preferred Stockholders
approved this.
The number of votes of Common Stock for or against each of the Directors was as
follows:
<TABLE>
<CAPTION>
<S> <C> <C>
- --------------------------------------------------------------------------------------------
Director Votes For Votes Against
- -------- --------- -------------
Oliver R. Grace, Jr. 1,779,548 8,165
Francis E. Baker 1,779,425 8,288
Peter N. Bennett 1,780,795 6,918
John S. Grace 1,778,925 8,788
Louis A. Lubrano 1,779,548 8,165
James J. Pinto 1,780,795 6,918
- ---------------------------------------------------------------------------------------------
</TABLE>
The number of votes cast for, against or withheld, as well as the number of
abstentions and broker non-votes of each class of capital stock entitled to vote
on the reincorporation proposal is set for below:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------
Class of stock For Against Abstain Non-Vote
- -------------- --- ------- ------- --------
Common 1,438,454 6,501 3,605 343,153
Preferred 204,136 40 0 52,240
- -----------------------------------------------------------------------------------------------------------
</TABLE>
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits required by Item 601 of Regulation S-K:
Exhibit Description
--------- -------------
Exhibit 27 Financial Data Schedule.
Exhibit 27.1 Restated Financial Data Schedule Quarter
Ended May 31, 1997.
No reports on Form 8-K were filed during the quarter ended May 31, 1998.
<PAGE>
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.
ANDERSEN GROUP, INC.
By: /s/ Oliver R. Grace, Jr.
Oliver R. Grace, Jr.
President and Chief Executive Officer
Date: July 13, 1998
By: /s/ Andrew M. O'Shea
Andrew M. O'Shea
Chief Financial Officer
The J.M. Ney Company
(Principal Financial Officer of the Company)
Date: July 13, 1998
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Exhibit 27
ANDERSEN GROUP, INC.
FINANCIAL DATA SCHEDULE
COMMERCIAL AND INDUSTRIAL COMPANIES
ARTICLE 5 OF REGULATION S-X
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
REGISTRANT'S FORM 10-Q FOR THE QUARTERLY PERIOD ENDING MAY 31, 1998 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FORM 10-Q.
FOOTNOTES
[1]ANTI-DILUTIVE
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> FEB-28-1999
<PERIOD-START> MAR-01-1998
<PERIOD-END> MAY-31-1998
<CASH> 4,160
<SECURITIES> 9,607
<RECEIVABLES> 5,342
<ALLOWANCES> (133)
<INVENTORY> 5,508
<CURRENT-ASSETS> 24,642
<PP&E> 21,940
<DEPRECIATION> (12,690)
<TOTAL-ASSETS> 42,418
<CURRENT-LIABILITIES> 6,041
<BONDS> 11,714
0
4,776
<COMMON> 2,103
<OTHER-SE> 13,254
<TOTAL-LIABILITY-AND-EQUITY> 42,418
<SALES> 7,685
<TOTAL-REVENUES> 7,831
<CGS> 5,170
<TOTAL-COSTS> 7,742
<OTHER-EXPENSES> 2,111
<LOSS-PROVISION> 3
<INTEREST-EXPENSE> 461
<INCOME-PRETAX> 89
<INCOME-TAX> 36
<INCOME-CONTINUING> 53
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (50)
<EPS-PRIMARY> (.03)
<EPS-DILUTED> (.03)
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Exhibit 27.1
ANDERSEN GROUP, INC.
FINANCIAL DATA SCHEDULE
COMMERCIAL AND INDUSTRIAL COMPANIES
ARTICLE 5 OF REGULATION S-X
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
REGISTRANT'S FORM 10-Q FOR THE QUARTERLY PERIOD ENDING MAY 31, 1997 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FORM 10-Q.
NOTE: EPS-DILUTED is anti-dilutive.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> FEB-28-1998
<PERIOD-START> MAR-01-1997
<PERIOD-END> MAY-31-1997
<CASH> 2,866
<SECURITIES> 5,935
<RECEIVABLES> 4,047
<ALLOWANCES> (218)
<INVENTORY> 9,578
<CURRENT-ASSETS> 22,382
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4,902
0
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<INCOME-TAX> 135
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<DISCONTINUED> 50
<EXTRAORDINARY> 0
<CHANGES> 0
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<EPS-PRIMARY> .07
<EPS-DILUTED> .070
</TABLE>
