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Previous: DEFINED ASSET FUNDS MUNICIPAL INVT TR FD MON PYMT SER 219, 24F-2NT, 1996-02-15 |
Next: GISH BIOMEDICAL INC, SC 13G, 1996-02-15 |
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OR THE SECURITIES EXCHANGE ACT OF 1934
For the period from ______ to ______
Commission File No. 0-11359
LARCAN-TTC INC.
(Exact Name of Registrant as Specified in its Charter)
DELAWARE 52-0854061
(State or Other Jurisdiction of (IRS Employer
Incorporation or Organization) ID Number)
650 South Taylor Avenue, Louisville, Colorado 80027
(Address of Principal Executive Offices, Including Zip Code)
(303) 665-8000
(Registrant's Telephone No.)
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) or
the Securities Exchange Act of 1934 during the preceding 12
months (or for 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 [ ]
The number of shares outstanding of the registrant's Common
Stock, par value $0.04 as of December 31, 1995 was 11,543,934 shares.
LARCAN-TTC INC.
CONTENTS
PART I. FINANCIAL INFORMATION
Page
Item 1 Balance Sheets -- December 31, 1995 and June 30, 1995 3
Statements of Operations -- Six months ended December 31, 1995 4
Statement of Cash Flows -- Six months ended December 31, 1995 5
Notes to Financial Statements 6
Item 2 Management's Discussion and Analysis of
Results of Operations and financial condition 7
PART II. OTHER INFORMATION
Item 1 Legal Proceedings 8
Item 2 Changes in Securities 8
Item 3 Defaults on Senior Securities 8
Item 4 Submission of Matters to a Vote of Security Holders 8
Item 5 Other Information 8
Item 6 Exhibits and Reports on Form 8-K 8
Signature Page 9
LARCAN-TTC INC.
BALANCE SHEETS
(Unaudited)
ASSETS
December June
31, 1995 30, 1995
CURRENT ASSETS
Cash and cash equivalents $ 97,000 $118,000
Trade accounts receivable less
allowance for doubtful accounts of $209,000 460,000 350,000
(December) and $203,000 (June)
Inventories (Note C) 2,423,000 1,564,000
Other 4,000 10,000
TOTAL CURRENT ASSETS 2,984,000 2,042,000
Equipment and Improvements 1,879,000 1,788,000
Less accumulated depreciation and
amortization 1,644,000 1,601,000
Net equipment and Improvements 235,000 187,000
Other Assets 19,000 19,000
TOTAL ASSETS 3,238,000 2,248,000
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Line of Credit $ 200,000 $ 200,000
Note Payable 29,000 70,000
Advances from Stockholder 2,550,000 1,575,000
Accounts Payable-Trade 1,311,000 735,0000
Salaries, wages and employee benefits 192,000 177,000
Accrued expenses and other liabilities 112,000 100,000
Accrued warranty and other reserves 32,000 34,000
Customer Advances (Note D) 743,000 482,000
Other 1,000 0
TOTAL CURRENT LIABILITIES 5,170,000 3,373,000
LONG-TERM LIABILITIES 0 0
TOTAL LIABILITIES 5,170,000 3,373,000
STOCKHOLDERS' EQUITY
Preferred stock, $1.00 par value;
1,000,000 shares authorized
Series A 5% cumulative convertible,
500,000 (Dec) and no (June) shares
issued and outstanding,liquidation
preferences $1.00 per share 500,000 0
Series A subscribed, 500,000 shares 0 500,000
Common stock, $0.04 par value;
30,000,000 shares authorized,
11,543,934 (Dec) and 6,543,934
(June) shares issued 462,000 262,000
Common stock, subscribed, 5,000,000
shares 0 200,000
Additional paid-in capital 4,745,000 4,744,000
Accumulated deficit (7,629,000) (6,821,000)
Common stock held in treasury, at
cost; 1,797 shares (10,000) (10,000)
TOTAL STOCKHOLDERS' EQUITY (1,932,000) (1,125,000)
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY 3,238,000 2,248,000
LARCAN-TTC INC.
STATEMENTS OF OPERATIONS
(Unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
December December December December
31, 1995 31, 1994 31, 1995 31, 1994
SALES $2,022,000 $1,807,000 $3,052,000 $3,470,000
COST OF GOODS SOLD 1,689,000 1,429,000 2,617,000 2,788,000
OPERATING EXPENSES:
Selling, general and
administrative 397,000 402,000 760,000 809,000
Research and
development 193,000 146,000 458,000 286,000
TOTAL EXPENSES 2,279,000 1,977,000 3,835,000 3,883,000
INCOME (LOSS) FROM
OPERATIONS (257,000) (170,000) (783,000) (413,000)
OTHER INCOME (EXPENSE)
Interest expense (7,000) (9,000) (13,000) (22,000)
Other income (9,000) 0 (12,000) (5,000)
TOTAL OTHER (16,000) (9,000) (25,000) (27,000)
NET INCOME (LOSS) $(273,000) $(179,000) $(808,000) $(440,000)
NET INCOME (LOSS) PER
COMMON SHARE $(0.02) $(0.03) $(0.09) $(0.07)
WEIGHTED AVERAGE
NUMBER OF SHARES
OUTSTANDING 11,543,934 6,542,934 9,043,934 6,542,934
LARCAN-TTC INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
SIX MONTHS ENDED
December December
31, 1995 31, 1994
OPERATING ACTIVITIES
Net Income (Loss) $(808,000) $(440,000)
Adjustments to reconcile net income to
net cash provided by (used in)
operating activities:
Depreciation & Amortization 43,000 62,000
Provision for losses on A/R 7,000 2,000
Provision for losses on inventory 22,000 13,000
Gain on disposal of assets 0 0
Change in operating assets and
liabilities:
Trade A/R (116,000) (321,000)
Inventories (881,000) 205,000
Other Current Assets 6,000 (93,000)
Trade A/P 576,000 121,000
Salaries, Wages & Benefits 15,000 (71,000)
Accrued Expenses & Other Liabilities 12,000 15,000
Accrued Warranty & Other Reserves (2,000) (20,000)
Customer Advances 261,000 312,000
Other 1,000 0
Total adjustments (56,000) 225,000
Net Cash used in operating activities (864,000) (215,000)
INVESTMENT ACTIVITIES:
Purchase. of Equip. & Improvements (91,000) (32,000)
(Incr.) Decrease in Other Assets 0 0
Net Cash used in invest activities (94,000) (32,000)
FINANCING ACTIVITIES:
Advances from affiliates 975,000 600,000
Borrowing on Notes Payable 0 0
Payment on Notes Payable (41,000) (400,000)
Principal payments on L/T Dt 0 (1,000)
Proceeds from issuance of Common Stock 0 0
Net Cash provided by Financing Activities 934,000 199,000
Increase/Decrease in Cash (21,000) (48,000)
Cash and cash equivalents at the
beginning of the fiscal year 118,000 195,000
Cash and cash equivalents at the end
of six months 97,000 147,000
Supplemental Disclosures of Cash Flow
Information:
Cash Paid during the six months for
interest 13,000 22,000
LARCAN-TTC INC.
NOTES TO FINANCIAL STATEMENTS
A. Reference is made to Note A of the financial statements
included in LARCAN-TTC INC. (the Company) annual report on
Form 10-K for the year ended June 30, 1995, which describes
the accounting policies of the Company and its' subsidiary
for annual reporting purposes.
In the opinion of management, the accompanying
unaudited financial statements contain all adjustments
(consisting of only normal recurring accruals) necessary to
present fairly the Company's financial position, and the
results of its' operations and cash flows for the
periods presented.
B. The results of operations for the six-month period
ended Decmeber 31, 1995, are not necessarily indicative of
results to be expected for the full year.
C. Inventories consisted of the following:
December 31, June 30,
1995 1995
(Unaudited)
Parts, Raw
Materials and
Subassemblies $ 1,793,000 $ 1,452,000
Work-in-process 630,000 112,000
Total Inventories $ 2,423,000 $ 1,564,000
D. Other Matters
In the normal course of business, the Company often
receives customer advances at the time an order is accepted.
Certain of these advances may be refunded according to the
terms of the underlying sales contracts. Also, there may be
various outstanding commitments and contingent liabilities,
such as guarantees and commitments to extend
credit, etc., which are not reflected in these financial
statements. No losses are anticipated
as a result of these commitments and contingencies.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF
OPERATIONS AND FINANCIAL CONDITION
Operating Results
Net revenues for the second quarter of fiscal year 1996
increased 12% ($215,000) over the same period in the prior
year. High power television shipments generated the
increase and for the first six months are now double a year
ago. Sales of radio and low power television are lower than
last year and as a result total sales are $418,000 (12%)
unfavorable to the first six months of last year.
At December 31, 1995, sales booked but not yet shipped were
$2,947,000. This compares favorably to the backlog at year
end June 30,1995 of $1,099,000.
Selling, general and administrative (SG&A) expenses during
the second quarter were $397,000 compared to $363,000 in the
first quarter and $402,000 a year ago. Year to date
expenses of $760,000 are 6% ($49,000) less than last year at
this time.
Research and development (R&D) costs in the second quarter
increased $47,000 (32%) from second quarter 1995 continuing
to reflect the increased cost of new product development.
For the year research and development expenses have
increased 60% over fiscal 1995.
Capital Resources
Working capital declined $329,000 from the first quarter of fiscal 1996
to ($2,186,000). Operating losses and capital acquisitions
accounted for the decline. At this time last year working
capital was ($1,255,000). Over the six months working
capital has declined $885,000.
As of December 31, 1995, the Company's short term bank
borrowings under its revolving line of credit were $200,000
unchanged from June. Since June $975,000 has been recieved in loans
from the parent corporation.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
The lawsuit previously reported in the 10K has been settled
with no financial consequence to the company.
ITEM 2. CHANGES IN SECURITIES.
None.
ITEM 3. DEFAULTS ON SENIOR SECURITIES.
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
None.
SIGNATURES
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.
LARCAN - TTC INC.
____________________________________________
(Registrant)
Date: February 14, 1995 ___________
P. Clyde Turner
Director
Date: February 14, 1995 _________________________________
M.P. Gagnon
Corporate Treasurer
Date: February 14, 1995 _________________________________
G. James Wilson
President
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-END> DEC-31-1995
<CASH> 97,000
<SECURITIES> 0
<RECEIVABLES> 670,000
<ALLOWANCES> 210,000
<INVENTORY> 2,423,000
<CURRENT-ASSETS> 2,984,000
<PP&E> 1,879,000
<DEPRECIATION> 1,644,000
<TOTAL-ASSETS> 3,238,000
<CURRENT-LIABILITIES> 5,170,000
<BONDS> 0
<COMMON> 462,000
0
500,000
<OTHER-SE> 4,745,000
<TOTAL-LIABILITY-AND-EQUITY> 3,238,000
<SALES> 3,052,000
<TOTAL-REVENUES> 3,052,000
<CGS> 2,617,000
<TOTAL-COSTS> 3,835,000
<OTHER-EXPENSES> 25,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 13,000
<INCOME-PRETAX> (808,000)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (808,000)
<EPS-PRIMARY> (.09)
<EPS-DILUTED> (.09)
</TABLE>
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