<PAGE> 1
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 MARCH 31, 1995
-------------------------------------------------
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 1-9348
------
QMS, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 63-0737870
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification Number)
incorporation or organization)
ONE MAGNUM PASS, MOBILE, AL 36618
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(334) 633-4300
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
NOT APPLICABLE
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
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
--- ---
APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares
outstanding of the issuer's common stock, as of the latest practicable date
10,676,815 AT APRIL 28, 1995.
- -----------------------------
1
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QMS, INC. AND SUBSIDIARIES
INDEX
<TABLE>
<CAPTION>
PART I - FINANCIAL INFORMATION PAGE NUMBER
-----------
<S> <C>
Item 1. Financial Statements
Condensed Consolidated Balance Sheets
(unaudited) as of March 31, 1995 and
September 30, 1994 3 - 4
Condensed Consolidated Statements of Operations
(unaudited) for the three and six months ended
March 31, 1995 and April 1, 1994 5
Condensed Consolidated Statements of Cash Flows
(unaudited) for the six months ended
March 31, 1995 and April 1, 1994 6
Notes to Condensed Consolidated Financial Statements
(unaudited) for the six months ended
March 31, 1995 and April 1, 1994 7 - 8
Computation of Earnings Per Common Share 9
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 10 - 12
PART II - OTHER INFORMATION 13
Item 1. Legal Proceedings
Item 2. Changes in Securities
Item 3. Defaults upon Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. (a) Exhibits
(b) Reports on Form 8-K
SIGNATURES 14
</TABLE>
2
<PAGE> 3
QMS, INC. AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CONDENSED CONSOLIDATED BALANCE SHEETS
as of March 31, 1995 and September 30, 1994
<TABLE>
<CAPTION>
(Unaudited)
March 31, September 30,
in thousands 1995 1994
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents $ 4,720 $ 4,956
Trade Receivables (less allowance for doubtful
accounts of $609 at March 1995 and $504
at September 1994) 47,255 51,462
Inventories, Net (Note 3) 70,223 69,770
Other Current Assets 11,157 8,335
------------ -------------
Total Current Assets 133,355 134,523
PROPERTY, PLANT AND EQUIPMENT 76,043 72,880
Less Accumulated Depreciation 45,375 42,054
------------ -------------
Property, Plant and Equipment, Net 30,668 30,826
OTHER ASSETS 16,139 16,674
------------ -------------
TOTAL ASSETS $ 180,162 $ 182,023
============ =============
</TABLE>
See Notes to Condensed Consolidated Financial Statements
3
<PAGE> 4
QMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
as of March 31, 1995 and September 30, 1994
<TABLE>
<CAPTION>
(Unaudited)
March 31, September 30,
in thousands 1995 1994
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts and Notes Payable $ 26,423 $ 20,791
Revolving Credit Loan & Short-term Debt 27,535 0
Other 35,783 34,342
------------ ------------
Total Current Liabilities 89,741 55,133
OTHER LIABILITIES 1,501 0
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS 10,482 35,687
DEFERRED INCOME TAXES 2,193 2,201
STOCKHOLDERS' EQUITY 76,245 89,002
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 180,162 $ 182,023
============ ============
</TABLE>
See Notes to Condensed Consolidated Financial Statements
4
<PAGE> 5
QMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three and Six Months Ended March 31, 1995 and April 1, 1994
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------ -----------------
March 31, April 1, March 31, April 1,
in thousands, except per share amounts 1995 1994 1995 1994
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET SALES $ 66,651 $ 71,283 $ 137,172 $ 141,937
COST OF GOODS SOLD 56,298 48,013 104,146 94,835
----------- ------------ ----------- ----------
GROSS PROFIT 10,353 23,270 33,026 47,102
SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES 21,645 21,735 43,288 44,408
RESTRUCTURING EXPENSE 2,685 0 2,685 0
----------- ------------ ----------- ----------
OPERATING INCOME (LOSS) (13,977) 1,535 (12,947) 2,694
----------- ------------ ----------- ----------
OTHER INCOME (EXPENSE)
Interest Income 27 16 40 33
Interest Expense (1,068) (837) (1,991) (1,709)
Miscellaneous Income (Expense) 508 84 486 (750)
----------- ------------ ----------- ----------
Total Other Expense (533) (737) (1,465) (2,426)
----------- ------------ ----------- ----------
INCOME (LOSS) BEFORE INCOME TAXES (14,510) 798 (14,412) 268
INCOME TAX PROVISION 0 247 26 83
----------- ------------ ----------- ----------
NET INCOME (LOSS) $ (14,510) $ 551 $ (14,438) $ 185
=========== ============ =========== ==========
EARNINGS (LOSS) PER COMMON SHARE (Note 2)
Primary $ (1.36) $ 0.05 $ (1.35) $ 0.02
Fully Diluted $ (1.36) $ 0.05 $ (1.35) $ 0.02
SHARES USED IN PER SHARE COMPUTATION (Note 2)
Primary 10,677 10,735 10,676 10,748
Fully Diluted 10,677 10,735 10,676 10,748
</TABLE>
See Notes to Condensed Consolidated Financial Statements
5
<PAGE> 6
QMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended March 31, 1995 and April 1, 1994
(Unaudited)
<TABLE>
<CAPTION>
March 31, April 1,
in thousands 1995 1994
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Cash Flows from Operating Activities:
Net Income (Loss) $(14,438) $ 185
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities:
Depreciation of Property, Plant and Equipment 4,351 4,683
Amortization of Capitalized and Deferred Software 5,433 3,901
Provision for Losses on Inventory 8,545 2,887
Provision for Restructuring Expense 2,685 0
Other 64 180
Changes in Assets and Liabilities that provided (used) cash:
Trade Receivables 4,091 (5,804)
Inventories (8,997) 2,737
Accounts Payable 5,632 4,203
Income Tax Payable 303 571
Other (3,022) 292
-------- ---------
Net Cash Provided by Operating Activities 4,647 13,835
Cash Flows from Investing Activities:
Purchase of Property, Plant and Equipment (4,579) (3,331)
Additions to Capitalized and Deferred Software Costs (4,546) (3,977)
Other 358 102
-------- ---------
Net Cash Used in Investing Activities (8,767) (7,206)
Cash Flows from Financing Activities:
Proceeds from Short-Term Debt 5,035 0
Payments of Revolving Credit Loan (700) 0
Proceeds from Capital Leases 413 0
Payments of Long-Term Debt and Capital Leases, including
Current Maturities (2,546) (5,442)
Proceeds from Stock Options Exercised 30 19
Other 0 (112)
-------- ---------
Net Cash Provided by (used in) Financing Activities 2,232 (5,535)
Effect of Exchange Rate Changes on Cash 1,652 (34)
-------- ---------
Net Change in Cash and Cash Equivalents (236) 1,060
Cash and Cash Equivalents at Beginning of Period 4,956 3,582
-------- ---------
Cash and Cash Equivalents at End of Period $ 4,720 $ 4,642
======== =========
</TABLE>
See Notes to Condensed Consolidated Financial Statements
6
<PAGE> 7
QMS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED MARCH 31, 1995 AND APRIL 1, 1994
(Unaudited)
1. MANAGEMENT OPINION
In the opinion of management, the condensed consolidated financial
statements reflect all adjustments necessary to present fairly the
financial position of the Company as of March 31, 1995 and September 30,
1994, the results of operations for the three and six months ended March
31, 1995 and April 1, 1994 and changes in cash flows for the six months
ended March 31, 1995 and April 1, 1994. All adjustments included in the
condensed consolidated financial statements are of a normal recurring
nature except for the special and restructuring charges recognized in the
second quarter of fiscal 1995, which are discussed in Part I, Item 2.
The results of operations for the six months ended March 31, 1995 are not
necessarily indicative of the results to be expected for the fiscal year
ending September 29, 1995.
2. PER COMMON SHARE COMPUTATIONS
Per share computations are based on the weighted average number of common
shares outstanding during the period and the dilutive effect of the
assumed exercise of stock options.
3. INVENTORIES
Inventories at March 31, 1995 and September 30, 1994 are summarized as
follows (in thousands):
<TABLE>
<CAPTION>
March 31, September 30,
1995 1994
---- ----
<S> <C> <C>
Raw materials $ 20,035 $ 24,003
Work in process 4,849 5,842
Finished goods 56,892 46,733
Inventory reserve (11,553) (6,808)
------------ -----------
TOTAL $ 70,223 $ 69,770
============ ===========
</TABLE>
4. COMMITMENTS AND CONTINGENCIES
At September 30, 1994, the Company had a commitment of approximately
$13.7 million under contracts to purchase print engines. As of March
31, 1995, the Company had a commitment of approximately $28.3 million
to purchase print engines under purchase contracts.
The Company was contingently liable for approximately $1.9 million as
of March 31, 1995. This was principally the result of letters of
credit issued in the normal course of business for the purchase of
inventory.
The Company was not in compliance with certain covenants contained in
its credit agreements related to the senior secured notes (6.15% and
10.13%) and its revolving credit agreement with a bank group at the
end of the second quarter of fiscal 1995. Covenant violations include
noncompliance with minimum net income requirements, interest coverage
and borrowings in
7
<PAGE> 8
excess of the borrowing base. The underlying problem giving rise to
these violations is the lack of an adequate and consistent revenue and
earnings stream which has adversely affected the Company's cash flow.
Due to the covenant violations and because of the bank group's desire
to exit the credit agreement at the end of January 1996, a cap on
borrowing capacity has been instituted by the bank group. As of May
5, 1995, that cap was $22.5 million. The Company is working with the
bank group to allow for an expansion of the cap to the limits of a
restructured borrowing base; however, management cannot be certain
that the expansion will be accomplished. The Company is pursuing
alternative methods of refinancing this debt from both U.S. and
foreign sources. Although the lenders have not indicated an intent to
accelerate the repayment of the Company's indebtedness, they
collectively may do so because of the covenant violations. The holder
of the senior secured notes has informed the Company that the status
of its debt will remain unchanged if the Company can successfully
refinance its borrowings under the Revolving Credit Agreement. The
Company has worked with certain of its key suppliers to arrange for
extended payment terms and these suppliers have been cooperative
principally because of the Company's history of paying in a consistent
manner.
The Company's ability to meet its continuing working capital and
capital expenditure needs is dependent upon adequate cash flow from
operations and its ability to successfully renegotiate its credit
agreements.
5. RECLASSIFICATIONS
Certain reclassifications have been made to fiscal 1994 amounts to
conform to the fiscal 1995 presentation.
8
<PAGE> 9
QMS, INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS (LOSS) PER COMMON SHARE
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------ ------------------
March 31, April 1, March 31, April 1,
in thousands, except per share amounts 1995 1994 1995 1994
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net income (loss) $ (14,510) $ 551 $ (14,438) $ 185
============ ========== ========== ==========
Shares used in this computation:
Weighted average common shares outstanding 10,677 10,707 10,676 10,706
Shares applicable to stock options, net of shares
assumed to be purchased from proceeds at
average market 0 28 0 42
------------ ---------- ----------- ----------
Total shares for earnings per common share
computation (primary) 10,677 10,735 10,676 10,748
------------ ---------- ----------- ----------
Total fully diluted shares 10,677 10,735 10,676 10,748
------------ ---------- ----------- ----------
Earnings (loss) per common share - primary $ (1.36) $ 0.05 $ (1.35) $ 0.02
============ ========== =========== ==========
Earnings (loss) per common share - fully diluted $ (1.36) $ 0.05 $ (1.35) $ 0.02
============ ========== =========== ==========
</TABLE>
9
<PAGE> 10
QMS, INC. AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Table 1: Net Sales Comparisons for Key Channels of Distribution
<TABLE>
<CAPTION>
Quarter ended March 31, 1995 Six Months Ended March 31, 1995
- ------------------------------------------------------------------------------------------------------------------
(000's) 1995 1994 Difference 1995 1994 Difference
------- ---- ---- ---------- ---- ---- ----------
<S> <C> <C> <C> <C> <C> <C>
U.S. Direct $ 10,170 $ 10,404 $ (234) $ 20,847 $ 20,976 $ (129)
U.S. Reseller 2,865 7,413 (4,548) 7,645 19,557 (11,912)
QMS Europe 20,702 19,675 1,027 44,086 38,830 5,256
QMS Japan 9,263 8,252 1,011 16,114 13,996 2,118
All Other 23,651 25,539 (1,888) 48,479 48,578 (99)
---------- -------- -------- ----------- ---------- --------
Total $ 66,651 $ 71,283 $ (4,632) $ 137,171 $ 141,937 $ (4,766)
========== ======== ======== =========== ========== ========
</TABLE>
Net sales for the second fiscal quarter of 1995 declined by 6.5% from net sales
for the second fiscal quarter of 1994 and by 3.4% in the six-month comparison.
The sales by key distribution channels in the second quarter of fiscal 1995 (the
three months ended March 31, 1995) compared to the second quarter of fiscal 1994
(the three months ended April 1, 1994) and the six month periods ending on the
same dates are shown in Table 1 above. The United States direct channel is the
Company's primary method of distribution for the higher end of the Company's
product offerings to major corporate accounts and governmental agencies. Net
sales in the direct channel for the three- and six-month periods ending March
31, 1995 are essentially the same compared to the same periods in fiscal 1994.
Fiscal 1995 net sales through the United States reseller channel for the second
quarter and first six months are significantly below the fiscal 1994 net sales
achievements. The United States reseller channel is the Company's primary
method of distribution for up to sixteen page-per-minute monochrome laser
printers and color laser printers. As was experienced throughout fiscal 1994,
new competition in these product classes is the primary cause of the lower net
sales. In QMS Europe, net sales for the second quarter of fiscal 1995 increased
5.2% over the second quarter sales of fiscal 1994 and increased 13.5% during the
six-month comparison. The increase in net sales is directly related to sales of
the magicolor(TM) color laser printer and the QMS 1060 and QMS 1660 monochrome
laser printers which were introduced into this market during the last quarter of
fiscal 1994 and sales of the magicolor LX color laser printer which was
introduced in March 1995. Net sales in QMS Japan increased 12.3% for the second
quarter of fiscal 1995 compared to the second quarter of fiscal 1994 and 15.1%
during the six-month comparison. The increased net sales came from sales of the
QMS 1660 and QMS 1060, which are sixteen and ten page-per-minute monochrome
laser printers, respectively, and the magicolor(TM) and magicolor LX color laser
printers. These products were introduced into this market during the fourth
quarter of fiscal 1994 except for the magicolor LX which was introduced during
March 1995.
Overall, the Company's gross profit as a percentage of sales declined from 32.6%
to 15.5% in the three-month comparison and from 33.2% to 24.1% in the six-month
comparison. This decline is primarily due to three factors. The most
significant of these factors is approximately $6.8 million of special charges
included in the second quarter of fiscal 1995 which are associated principally
with inventory revaluation. The second of these factors is lower margins
resulting from the introduction in March 1995 of the magicolor LX at a reference
price of $4,999. This action had the effect of increasing demand for the
Company's color laser printers; however, because of the lower net selling price,
profit margins for this product line negatively affected overall margins. The
Company anticipates that increased demand for the magicolor LX printer will
subsequently result in an increase in the relatively high margin consumable and
service revenues. The third factor affecting profit
10
<PAGE> 11
margins is the continuing competition principally in the United States reseller
channel which resulted in the need to reduce some selling prices at the lower
end of the Company's product offerings. The recently introduced sales strategy
described above for the magicolor LX color printer, combined with the
introduction in the latter part of fiscal 1994 of higher margin monochrome
laser printers in several of the Company's markets, is anticipated to shift net
sales towards higher overall profit margins in forthcoming periods.
The Company purchases print engine mechanisms and memory components from
Japanese suppliers. Fluctuations in foreign currency exchange rates will
affect the prices of these products. The Company attempts to mitigate possible
negative impacts through yen-sharing arrangements with suppliers, foreign
exchange contracts, price negotiations and the natural hedge provided by sales
denominated in the yen; however, material price increases resulting from
exchange rate fluctuations could develop which would adversely affect operating
results.
Selling, general and administrative expenses declined slightly in the second
quarter of fiscal 1995 compared to the second quarter of fiscal 1994 and 2.5%
in the six-month comparison. Restructuring charges of approximately $2.7
million were recognized in the second quarter of fiscal 1995. Included in the
restructuring charges are costs related to severance and outplacement services
for approximately 70 employees in the United States or 5% of worldwide
employment. In addition, the restructuring charges include cost reductions to
be implemented in foreign operations. The total restructuring effort, when
fully implemented, is expected to reduce operating expenses by approximately
10%.
Total other expense decreased by $0.2 million in the second quarter of fiscal
1995 compared to the second quarter of fiscal 1994 and by $1 million in the
six-month comparison. These decreases resulted primarily from changes in the
translation of balance sheet elements that were denominated in foreign
currencies.
Finished goods inventories were $56.9 million at March 31, 1995 compared to
$46.7 million at September 30, 1994. This increase of $10.2 million, or 21.8%,
is due to lower than expected sales during the first and second quarters of
fiscal 1995, principally in the United States reseller channel. The increase
in finished goods is partially offset by a decrease of $4.0 million, or 16.7%,
in raw materials inventories and a decrease of $1.0 million, or 17%, in work in
process inventories. Inventory reserves increased $4.7 million from September
30, 1994 to March 31, 1995. This increase is related to additional reserves
for inventory revaluation which were part of the special charges recognized in
the second quarter of fiscal 1995.
The Company's effective tax rate was zero for the second quarter and first six
months of fiscal 1995 compared to 31% for the same periods of fiscal 1994.
Although the Company anticipates future operating income, because of factors
beyond management's control, there can be no guarantee that future tax benefits
will be realized; therefore, no income tax benefit or deferred tax assets
resulting from net operating losses have been recognized in the current fiscal
year.
LIQUIDITY AND CAPITAL RESOURCES
During the second quarter of fiscal 1995, the Company's working capital and
capital expenditure requirements came principally from operations, short-term
bank loans and capitalized leases. The Company's net working capital was $43.6
million at March 31, 1995 compared to $79.4 million at September 30, 1994.
This reduction is principally due to reclassification of the revolving credit
loan, which totaled $22.5 million at March 31, 1995, from long-term debt to
short-term debt and new short-term bank borrowings totaling $5 million at March
31, 1995.
The Company was not in compliance with certain covenants contained in its
credit agreements related to the senior secured notes (6.15% and 10.13%) and
its revolving credit agreement with a bank
11
<PAGE> 12
group at the end of the second quarter of fiscal 1995. Covenant violations
include noncompliance with minimum net income requirements, interest coverage
and borrowings in excess of the borrowing base. The underlying problem giving
rise to these violations is the lack of an adequate and consistent revenue and
earnings stream which has adversely affected the Company's cash flow. Due to
the covenant violations and because of the bank group's desire to exit the
credit agreement at the end of January 1996, a cap on borrowing capacity has
been instituted by the bank group. As of May 5, 1995, that cap was $22.5
million. The Company is working with the bank group to allow for an expansion
of the cap to the limits of a restructured borrowing base; however, management
cannot be certain that the expansion will be accomplished. The Company is
pursuing alternative methods of refinancing this debt from both U.S. and
foreign sources. Although the lenders have not indicated an intent to
accelerate the repayment of the Company's indebtedness, they collectively may
do so because of the covenant violations. The holder of the senior secured
notes has informed the Company that the status of its debt will remain
unchanged if the Company can successfully refinance its borrowings under the
Revolving Credit Agreement. The Company has worked with certain of its key
suppliers to arrange for extended payment terms and these suppliers have been
cooperative principally because of the Company's history of paying in a
consistent manner.
The Company's ability to meet its continuing working capital and capital
expenditure needs is dependent upon adequate cash flow from operations and its
ability to successfully renegotiate its credit agreements.
12
<PAGE> 13
QMS, INC. AND SUBSIDIARIES
PART II - OTHER INFORMATION
ITEM 1 - LEGAL PROCEEDINGS
The Company's annual report on Form 10-K for the year ended September 30,
1994 reported the status of Sharon L. McNider v. QMS, Inc., et. al.
During the second quarter of 1995, a continuance was granted and the case
is now scheduled for trial on June 6, 1995. No other material
developments occurred in this case during the second quarter of fiscal
1995.
The Company is a defendant in various litigation in the normal course of
business. Management is of the opinion that the ultimate resolution of
such claims will not materially affect the Company's financial position
or results of operations.
ITEM 2 - CHANGES IN SECURITIES - None.
ITEM 3 - DEFAULTS UPON SENIOR SECURITIES
(a) At March 31, 1995, the Company was not in compliance with
certain covenants contained in the Amended and Restated Secured
Revolving Credit Agreement, dated October 2, 1992, the 10.13% senior
secured notes payable and the 6.15% senior secured notes payable.
Covenant violations include noncompliance with minimum net income
requirements, interest coverage and funds borrowed in excess of the
borrowing base.
The current Amended and Restated Secured Revolving Credit Agreement
expires in January 1996 and the existing bank group who are the lenders
under this agreement have informed the Company that they do not intend to
renew the Agreement. The Company is pursuing alternative methods of
refinancing this debt from both U.S. and foreign sources and expects to
accomplish the refinancing in a timely manner. Accordingly, this debt
has been classified in the March 31, 1995 financial statements as
short-term debt.
The Company has not received a waiver of the noncompliance for the senior
note agreements; however, the holder of the notes has informed the
Company that the status of its debt will remain unchanged subject to the
Company successfully refinancing the revolving credit agreement.
Accordingly, this debt is classified in the March 31, 1995 financial
statements as long-term.
(b) 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
a) Exhibits:
<TABLE>
<CAPTION>
Exhibit
Number Description
------ -----------
<S> <C>
27 Financial Data Schedule
</TABLE>
(b) Reports: None.
13
<PAGE> 14
QMS, INC. AND SUBSIDIARIES
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.
<TABLE>
<S> <C>
QMS, INC.
(Registrant)
Date: May 12, 1995 /s/ James K. Doan
----------------- -----------------
JAMES K. DOAN
Executive Vice President - Finance and
Administration, Chief Financial Officer
(Mr. Doan is the Principal Financial
Officer and has been duly authorized
to sign on behalf of the registrant.)
</TABLE>
14
<PAGE> 15
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT
NO. DESCRIPTION
- ------- -----------
<S> <C>
27 Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000710983
<NAME> QMS INC.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-29-1995
<PERIOD-START> OCT-01-1994
<PERIOD-END> MAR-31-1995
<CASH> 4,720
<SECURITIES> 0
<RECEIVABLES> 47,864
<ALLOWANCES> 609
<INVENTORY> 70,223
<CURRENT-ASSETS> 133,355
<PP&E> 76,043
<DEPRECIATION> 45,375
<TOTAL-ASSETS> 180,162
<CURRENT-LIABILITIES> 89,741
<BONDS> 0
<COMMON> 118
0
0
<OTHER-SE> 76,127
<TOTAL-LIABILITY-AND-EQUITY> 180,162
<SALES> 137,172
<TOTAL-REVENUES> 137,172
<CGS> 104,146
<TOTAL-COSTS> 104,146
<OTHER-EXPENSES> 45,973
<LOSS-PROVISION> 116
<INTEREST-EXPENSE> 1,991
<INCOME-PRETAX> (14,438)
<INCOME-TAX> 0
<INCOME-CONTINUING> (14,438)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (14,438)
<EPS-PRIMARY> (1.35)
<EPS-DILUTED> (1.35)
</TABLE>
