UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
July 29, 1997 (July 29, 1997)
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Date of Report (Date of earliest event reported)
MERRIMAC INDUSTRIES, INC.
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(Exact name of registrant as specified in its charter)
New Jersey 0-11201 22-1642321
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
41 Fairfield Place, West Caldwell, New Jersey 07006-6287
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (201) 575-1300
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INFORMATION TO BE INCLUDED IN THE REPORT
Item 5. Other Events.
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Registrant's press release dated July 29, 1997 is filed herewith as
Exhibit 20 and is incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
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(c) Exhibits.
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20. Press Release of Registrant dated July 29, 1997.
SIGNATURE
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Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this Current Report to be signed on its
behalf by the undersigned thereunto duly authorized.
MERRIMAC INDUSTRIES, INC.
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(Registrant)
By /s/Robert V. Condon
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Robert V. Condon
Vice President, Finance and
Chief Financial Officer
Date: July 29, 1997
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EXHIBIT INDEX
Sequentially
Exhibit Numbered Page
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20. Press Release of Registrant dated
July 29, 1997.
Exhibit 20
FOR IMMEDIATE RELEASE
MERRIMAC SECOND QUARTER AND SIX MONTHS 1997
EARNINGS INCREASE ON RECORD SALES; BACKLOG IS UP;
DIVIDEND DECLARED
West Caldwell, N.J., July 29, 1997: Merrimac Industries, Inc. announces results
for the second quarter and six months of 1997, reflecting solid increases in
earnings on record sales volume and a rising backlog.
Second quarter 1997 net income per share increased to $.24 per share or 20%
compared to the second quarter of the prior year. Net income increased 21% to
$378,000 for the second quarter of 1997 compared to 1996, resulting from sales
of $4,986,000, which increased 27% over the second quarter of the prior year of
$3,926,000.
For the first six months of 1997, net income per share increased to $.42 per
share or 20% compared to the prior year. Net income increased 16% to $656,000
compared to 1996, resulting from sales of $9,261,000, which increased 30% over
prior year six-month sales of $7,113,000. The number of weighted average common
shares outstanding was reduced by 38,000 shares primarily from common stock
repurchases during 1996, partly offset by the dilutive effect of stock options
this year.
Comparison of the backlog for the end of the second quarter of 1997 of $9.7
million to that of the second quarter of the prior year of $6.6 million reflects
a 47% increase in backlog, and is 18% above year-end 1996. Orders are expected
to continue to be strong for Merrimac products in the third quarter.
Chairman and CEO Mason N. Carter commented: "Record sales volume for the quarter
and six months reflects the outstanding accomplishments of the Merrimac Team
effort. Our process improvement initiatives, customer service focus and
reduction of total-cycle-time to market are becoming effective competitive
weapons. Net income increased even though we funded important infrastructure
changes and product development. In the last six months, seven new products have
been developed and commercialized or are in the process of being commercialized.
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"Trailing nine-month sales of $13.3 million approaches the annual sales levels
for each of the past four fiscal years. Our current high rate of shipments is
exceeded by the sales order booking rate by 20%. There are many opportunities
and challenges to optimize as we move towards our Goal of Profitable Growth."
The Board of Directors declared a cash dividend of $.10 per share on its Common
Stock, payable September 19, 1997 to stockholders of record on September 5,
1997.
The statements in this news release include forward-looking statements based on
current management expectations and are subject to risks and uncertainties.
Factors that could cause future results to differ from these expectations
include general economic and industry conditions, competitive products and
pricing pressures, risks relating to governmental regulatory actions in
communications and defense programs, and inventory risks due to technological
innovation. Additional factors to which the Company's performance is subject are
described in the Company's reports filed with the Securities and Exchange
Commission.
Merrimac Industries, Inc., with locations in West Caldwell, NJ and San Jose,
Costa Rica, has approximately 160 employees in the design and manufacture of
high-performance components and subsystems for communications, defense and
aerospace applications. Merrimac (MRM) is listed on the American Stock Exchange.
Contact: Mason N. Carter Fax: (973) 882-5989
Chairman and CEO Email: [email protected]
Phone: (973) 575-1300, Ext. 202 Internet: http://www.merrimacind.com
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MERRIMAC INDUSTRIES, INC.
SUMMARY OF CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Quarter Ended
June 28 June 29
1997 1996
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<S> <C> <C>
Net sales $4,986,000 $3,926,000
Income before income taxes 609,000 478,000
Provision for income taxes 231,000 165,000
Net income 378,000 313,000
Net income per common share $.24 $.20
Weighted average number of shares outstanding 1,580,000 1,587,000
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
June 28 June 29
1997 1996
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<S> <C> <C>
Net sales $9,261,000 $7,113,000
Income before income taxes 1,047,000 859,000
Provision for income taxes 391,000 294,000
Net income 656,000 565,000
Net income per common share $.42 $.35
Weighted average number of shares outstanding 1,573,000 1,611,000
</TABLE>
