<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For The Quarter Ended March 31, 1995 Commission File No. 0-6994
------
NEW BRUNSWICK SCIENTIFIC CO., INC.
State of Incorporation - New Jersey E. I. #22-1630072
-----------
44 Talmadge Road, Edison, N.J. 08818-4005
Registrant's Telephone Number: 908-287-1200
------------
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 twelve (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 ninety (90) days.
Yes X No .
--- ---
There are 3,581,283 Common shares outstanding as of May 8, 1995.
Page 1
<PAGE> 2
NEW BRUNSWICK SCIENTIFIC CO., INC.
Index
PAGE NO.
--------
PART I. FINANCIAL INFORMATION:
Item 1:
Consolidated Condensed Balance Sheets -
March 31, 1995 and December 31, 1994 3
Consolidated Statements of Operations -
Three Months Ended March 31, 1995 and 1994 4
Consolidated Condensed Statements of
Cash Flows - Three Months Ended March 31,
1995 and 1994 5
Notes to Consolidated Condensed Financial
Statements 6
Item II:
Management's Discussion and Analysis of Results
of Operations and Financial Condition 7
PART II. OTHER INFORMATION 9
Page 2
<PAGE> 3
NEW BRUNSWICK SCIENTIFIC CO., INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands, except for share data)
ASSETS
March 31, December 31,
1995 1994
----------- ------------
Current Assets (Unaudited)
--------------
Cash and cash equivalents $ 6,464 $ 7,142
Accounts receivable, net 7,772 7,700
Deferred income tax benefit 302 302
Inventories:
Raw materials and sub-assemblies 7,197 7,126
Work-in-process 2,190 1,826
Finished goods 3,947 3,757
------- -------
Total inventories 13,334 12,709
Prepaid expenses and other current assets 1,373 1,218
------- -------
Total current assets 29,245 29,071
------- -------
Property, plant and equipment, net 5,137 4,922
Other assets 514 511
------- -------
$34,896 $34,504
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
-------------------
Current installments of long-term debt $ 151 $ 176
Accounts payable and accrued expenses 5,911 5,928
------- -------
Total current liabilities 6,062 6,104
------- -------
Long-term debt, net of current installments 687 665
------- -------
Shareholders' equity:
Common stock, $.0625 par, authorized 25,000,000
shares; shares issued and outstanding, 1995
and1994 - 3,581,283 net of shares held in
treasury, 338,500 224 224
Capital in excess of par 19,213 19,213
Retained earnings 8,516 8,495
Currency translation adjustment 194 (197)
------- -------
Total shareholders' equity 28,147 27,735
------- -------
$34,896 $34,504
======= =======
See notes to consolidated condensed financial statements.
Page 3
<PAGE> 4
NEW BRUNSWICK SCIENTIFIC CO., INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
March 31,
-------------------
1995 1994
------- -------
Net sales $ 9,437 $ 9,266
Operating costs and expenses:
Cost of sales 5,757 5,794
Selling, general and administrative expenses 2,980 2,820
Research, development and engineering expenses 468 452
------- -------
Total operating costs and expenses 9,205 9,066
------- -------
Income from operations 232 200
Other income (expense):
Interest income 65 27
Interest expense (15) (17)
Other expense, net (15) (22)
------- -------
35 (12)
------- -------
Income before income taxes 267 188
Income taxes 67 56
------- -------
Net income $ 200 $ 132
======= =======
Earnings per Common share $ .06 $ .04
======= =======
Weighted average number of
shares outstanding 3,581 3,569
======= =======
See notes to consolidated condensed financial statements.
Page 4
<PAGE> 5
NEW BRUNSWICK SCIENTIFIC CO., INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended
March 31
-------------------
1995 1994
------- -------
Cash flows from operating activities:
Net income $ 200 $ 132
Adjustments to reconcile net income to net cash
provided (used) by operating activities:
Depreciation 137 156
Change in related balance sheet accounts:
Accounts receivable 159 (186)
Inventories (447) (236)
Prepaid expenses and other current assets (117) 129
Accounts payable and accrued expenses (243) (264)
------- -------
Net cash used by operating activities (311) (269)
------- -------
Cash flows from investing activities:
Additions to property, plant and equipment (260) (132)
------- -------
Net cash used by investing activities (260) (132)
------- -------
Cash flows from financing activities:
Dividends (179) -
Repayment of long-term debt (45) (49)
Proceeds from issuance of Common stock under
Stock Option Plan for nonemployee directors - 2
------- -------
Net cash used by financing activities (224) (47)
Net effect of exchange rate changes on cash 117 23
------- -------
Net decrease in cash and cash equivalents 678 425
Cash and cash equivalents at beginning of period 7,142 4,773
------- -------
Cash and cash equivalents at end of period $ 6,464 $ 4,348
======= =======
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest $ 21 $ 18
Income taxes 123 114
See notes to consolidated condensed financial statements.
Page 5
<PAGE> 6
NEW BRUNSWICK SCIENTIFIC CO., INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
Note 1 - Interim Results:
In the opinion of the Company, the accompanying unaudited consolidated condensed
financial statements contain all adjustments (consisting only of normal
recurring accruals) necessary to present fairly, its financial position as of
March 31, 1995 and the results of its operations and cash flows for the three
months ended March 31, 1995 and 1994. Interim results may not be indicative of
the results that may be expected for the year.
Note 2 - Earnings per share:
Earnings per Common share are based on the weighted average number of shares
outstanding. Stock options are not included in the calculation as they had no
significant dilutive effect on earnings per share.
Note 3 - Consolidated Condensed Statements of Shareholders' Equity:
Three Months Ended
March 31,
---------------------
1995 1994
------ -------
(In thousands)
Balance at beginning of period $27,735 $26,253
Net income 200 132
Currency translation adjustment 391 113
Dividends ($.05 per share) (179) -
Issue of shares under Stock Option Plan
for nonemployee directors - 2
------- -------
Balance at end of period $28,147 $26,500
======= =======
Pgae 6
<PAGE> 7
NEW BRUNSWICK SCIENTIFIC CO., INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF
OPERATIONS AND FINANCIAL CONDITION
The following is Management's discussion and analysis of significant factors
that have affected the Company's operating results and financial condition
during the quarter ended March 31, 1995.
Results of Operations
Quarter Ended March 31, 1995 vs. Quarter Ended March 31, 1994.
For the quarter ended March 31, 1995, net sales were $9,437,000 compared with
net sales of $9,266,000 for the quarter ended March 31, 1994. Net income for the
1995 quarter was $200,000 or $.06 per share compared with net income of $132,000
or $.04 per share for the first quarter of 1994.
The 51.5% increase in net income for the 1995 quarter on a sales increase of
1.8% resulted primarily from higher operating margins due to continuing
improvements in operating efficiencies, the positive effect of the weaker dollar
on the product costs of the Company's European subsidiaries and significantly
higher interest income, $65,000 in the 1995 quarter vs. $27,000 in 1994
resulting from higher average cash and cash equivalents and increasingly higher
interest rates.
Financial Condition
Liquidity and Capital Resources
During the period ended March 31, 1995, Cash and Cash Equivalents decreased to
$6,464,000 from $7,142,000 at December 31, 1994. The decrease in cash resulted
primarily from an increase in inventories from $12,709,000 at December 31, 1994
to $13,334,000 at March 31, 1995. Inventories increased primarily as a result of
the need to replenish work-in-process inventories to the level necessary to
ensure an efficient work flow through the Company's plant and in anticipation of
large orders for specialized equipment which generally have long lead times.
Prepaid expenses and other current assets increased during the 1995 quarter due
primarily to the partial payment of pension costs which will be amortized
throughout the year.
Cash Flows from Operating Activities
During the quarters ended March 31, 1995 and 1994, net cash used by operating
activities amounted to $311,000 and $269,000, respectively. The primary reasons
for the $42,000 negative change between the two periods were the following: (a)
inventories increased $447,000 vs. an increase of $236,000 in 1994; (b) prepaid
expenses and other current assets increased $117,000 vs. a decrease of $129,000
in 1994; and were offset by (a) net income of $200,000 in 1995 vs. $132,000 in
1994; and (b) a decrease in accounts receivable of $159,000 in 1995 vs. an
increase of $186,000 in 1994.
Cash Flows from Investing Activities
Net cash used by investing activities amounted to $260,000 in 1995 vs. $132,000
in 1994, as a result of additions to property, plant and equipment.
Page 7
<PAGE> 8
Cash Flows from Financing Activities
Net cash used by financing activities amounted to $224,000 in the 1995 period
vs. $47,000 in the 1994 period. The major reason for the difference resulted
from a Common stock dividend of the Company in the amount of $179,000.
Management believes that the resources available to the Company, including its
line of credit, are sufficient to meet its near-term needs and its strong
unleveraged balance sheet provides the basis for any long-term financing if the
need should arise.
Page 8
<PAGE> 9
NEW BRUNSWICK SCIENTIFIC CO., INC. AND SUBSIDIARIES
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
No reports on Form 8-K have been filed during the quarter ended March 31, 1995.
Page 9
<PAGE> 10
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.
NEW BRUNSWICK SCIENTIFIC CO., INC.
----------------------------------
(Registrant)
Date: May 8, 1995 /s/ Ezra Weisman
----------------------------------
Ezra Weisman
President
(Chief Executive Officer)
/s/ Samuel Eichenbaum
----------------------------------
Samuel Eichenbaum
Vice President - Finance
(Principal Accounting Officer)
Page 10
<PAGE> 11
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.
NEW BRUNSWICK SCIENTIFIC CO., INC.
----------------------------------
(Registrant)
Date: May 8, 1995 ----------------------------------
Ezra Weisman
President
(Chief Executive Officer)
----------------------------------
Samuel Eichenbaum
Vice President - Finance
(Principal Accounting Officer)
Page 10
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> MAR-31-1995
<CASH> 6,464,000
<SECURITIES> 0
<RECEIVABLES> 7,772,000
<ALLOWANCES> 0
<INVENTORY> 13,334,000
<CURRENT-ASSETS> 29,245,000
<PP&E> 5,137,000
<DEPRECIATION> 0
<TOTAL-ASSETS> 34,896,000
<CURRENT-LIABILITIES> 6,062,000
<BONDS> 0
<COMMON> 224,000
0
0
<OTHER-SE> 27,923,000
<TOTAL-LIABILITY-AND-EQUITY> 34,896,000
<SALES> 9,437,000
<TOTAL-REVENUES> 9,437,000
<CGS> 5,757,000
<TOTAL-COSTS> 9,205,000
<OTHER-EXPENSES> 40,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 15,000
<INCOME-PRETAX> 267,000
<INCOME-TAX> 67,000
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 200,000
<EPS-PRIMARY> .06
<EPS-DILUTED> 0
</TABLE>
