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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 10Q/A
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
-- ACT OF 1934
For the quarterly period ended September 30, 1995
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
-- SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
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Commission file number 0-12488
Isomedix Inc.
(Exact name of registrant as specified in its charter)
Delaware 22-1986189
(State or other jurisdiction of (I.R.S. Employer
incorporation of organization) Identification No.)
11 Apollo Drive, Whippany, New Jersey 07981
(Address of principal executive offices) (Zip Code)
(201) 887-4700
(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 ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all
documents and reports required to be filed by Sections 12, 13 or
15(d) of the Securities Exchange Act of 1934 subsequent to the
distribution of securities under a plan confirmed by a court.
Yes No
--- ---
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of September 30, 1995: 6,982,628 shares of common
stock $.01 par value.
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ISOMEDIX INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 1995 AND DECEMBER 31, 1994
<TABLE>
<CAPTION>
Septmber 30, December 31,
1995 1994
------------ ------------
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents $ 7,036,865 $ 5,961,473
Investments 21,363,159 11,891,561
Accounts Receivable, Less
Allowance for Doubtful Accounts
of $350,000 at September 30, 1995
and at December 31, 1994 8,287,980 8,493,608
Prepaid Expenses and Other Current Assets 840,949 1,614,108
------------ ------------
Total Current Assets 37,528,953 27,960,750
------------ ------------
PROPERTY, PLANT AND EQUIPMENT
At Cost 58,743,361 55,207,156
Less, Accumulated Depreciation 17,222,966 15,359,400
------------ ------------
41,520,395 39,847,756
------------ ------------
RADIOISOTOPE
At Cost 64,497,929 62,790,850
Less, Accumulated Depreciation 35,501,715 32,203,450
------------ ------------
28,996,214 30,587,400
------------ ------------
INVESTMENTS 5,526,960
EXCESS OF COSTS OVER NET ASSETS ACQUIRED 690,491 753,482
OTHER ASSETS 982,604 1,523,357
------------ ------------
Total Assets $109,718,657 $106,199,705
============ ============
</TABLE>
See accompanying notes to the consolidated financial statements.
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<TABLE>
<CAPTION>
September 30, December 31,
1995 1994
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LIABILITIES (Unaudited)
<S> <C> <C>
CURRENT LIABILITIES
Current Portion of Long-Term Debt $ 525,000 $ 925,000
Accounts Payable 444,691 1,663,756
Accrued Expenses 756,806 825,455
Contract Deposits 81,169 47,572
Income Taxes Payable 423,275 264,923
------------- -------------
Total Current Liabilities 2,230,941 3,726,706
LONG-TERM DEBT 9,000,000 9,100,000
DEFERRED INCOME TAXES 7,954,257 7,633,452
------------- -------------
Total Liabilities 19,185,198 20,460,158
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STOCKHOLDERS' EQUITY
PREFERRED STOCK
$1.00 par value
Authorized - 15,000,000 shares
Issued and Outstanding - none
COMMON STOCK
$.01 par value
Authorized - 15,000,000 shares
Issued:
September 30, 1995 - 7,167,868 shares
December 31, 1994 - 7,152,592 shares
Outstanding:
September 30, 1995 - 6,982,528 shares
December 31, 1994 - 7,042,592 shares 71,679 71,526
ADDITIONAL PAID-IN CAPITAL 37,670,170 37,505,506
RETAINED EARNINGS 55,577,221 49,868,144
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93,319,070 87,445,176
LESS, COMMON STOCK HELD IN THE TREASURY,
AT COST
September 30, 1995 - 185,340 shares
December 31, 1994 - 110,000 shares (2,785,611) (1,705,629)
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Total Stockholders' Equity 90,533,459 85,739,547
------------- -------------
Total Liabilities and
Stockholders' Equity $ 109,718,657 $ 106,199,705
============= =============
</TABLE>
See accompanying notes to the consolidated financial statements.
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ISOMEDIX INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(Unaudited)
<TABLE>
<CAPTION>
September 30, September 30,
1995 % 1994 %
------------- ----- ------------- -----
<S> <C> <C> <C> <C>
SALES $ 11,008,841 100.0 $ 12,283,423 100.0
COST OF SALES 5,352,263 48.6 5,516,614 44.9
------------ ----- ------------ -----
GROSS PROFIT 5,656,578 51.4 6,766,809 55.1
SELLING, GENERAL &
ADMINISTRATIVE EXPENSES 2,728,324 24.8 2,719,328 22.1
------------ ----- ------------ -----
OPERATING INCOME 2,928,254 26.6 4,047,481 33.0
OTHER INCOME (EXPENSE)
Investment Income 293,329 2.6 199,886 1.6
Interest Expense (125,968) (1.1) (122,745) (1.0)
------------ ----- ------------ -----
INCOME BEFORE PROVISION
FOR INCOME TAXES 3,095,615 28.1 4,124,622 33.6
PROVISION FOR INCOME
TAXES 1,238,501 11.2 1,649,849 13.4
------------ ----- ------------ -----
NET INCOME $ 1,857,114 16.9 $ 2,474,773 20.2
============ ===== ============ =====
EARNINGS PER SHARE $ .26 $ .34
============ ============
</TABLE>
See accompanying notes to the consolidated financial statements.
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<PAGE> 5
ISOMEDIX INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(Unaudited)
<TABLE>
<CAPTION>
September 30, September 30,
1995 % 1994 %
------------- ----- ------------- -----
<S> <C> <C> <C> <C>
SALES $ 33,943,218 100.0 $ 35,552,547 100.0
COST OF SALES 16,349,781 48.2 16,149,220 45.4
------------ ----- ------------ -----
GROSS PROFIT 17,593,437 51.8 19,403,327 54.6
SELLING, GENERAL &
ADMINISTRATIVE EXPENSES 8,443,533 24.9 8,282,339 23.3
------------ ----- ------------ -----
OPERATING INCOME 9,149,904 26.9 11,120,988 31.3
OTHER INCOME (EXPENSE)
Investment Income 764,525 2.3 515,365 1.4
Interest Expense (398,875) (1.2) (358,712) (1.0)
------------ ----- ------------ -----
INCOME BEFORE PROVISION
FOR INCOME TAXES 9,515,554 28.0 11,277,641 31.7
PROVISION FOR INCOME
TAXES 3,806,477 11.2 4,511,057 12.7
------------ ----- ------------ -----
NET INCOME $ 5,709,077 16.8 $ 6,766,584 19.0
============ ===== ============ =====
EARNINGS PER SHARE $ .79 $ .92
============ ============
</TABLE>
See accompanying notes to the consolidated financial statements.
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ISOMEDIX INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
TOTAL
STOCKHOLDERS'
EQUITY
<S> <C>
BALANCE - December 31, 1994 $ 85,739,547
Exercise of Stock Options 241,894
Acquisition of Treasury Stock (1,275,944)
Sales of Common Stock Under Employee
Stock Purchase Plan 118,885
Net Income 5,709,077
------------
BALANCE - September 30, 1995 $ 90,533,459
============
</TABLE>
See accompanying notes to the consolidated financial statements.
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<TABLE>
<CAPTION>
COMMON STOCK ADDITIONAL TREASURY STOCK
- --------------------- --------------------------
NUMBER PAID-IN RETAINED NUMBER
OF SHARES AMOUNT CAPITAL EARNINGS OF SHARES AMOUNT
<S> <C> <C> <C> <C> <C>
7,152,592 $71,526 $37,505,506 $49,868,144 (110,000) ($1,705,629)
10,900 109 106,124 9,205 135,661
(89,800) ( 1,275,944)
4,376 44 58,540 5,255 60,301
5,709,077
- --------- ------- ----------- ----------- -------- -----------
7,167,868 $71,679 $37,670,170 $55,577,221 (185,340) ($2,785,611)
========= ======= =========== =========== ======== ===========
</TABLE>
See accompanying notes to the consolidated financial statements.
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<PAGE> 8
ISOMEDIX INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(Unaudited)
Increase in Cash and Cash Equivalents
<TABLE>
<CAPTION>
September 30, September 30,
1995 1994
------------- -------------
<S> <C> <C>
Cash flows from operating activities:
Net Income $ 5,709,077 $ 6,766,584
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 5,175,037 5,345,437
Amortization 527,458 522,276
Changes in assets and liabilities:
Decrease (increase)in accounts receivable 205,628 (1,449,768)
Decrease in prepaid expenses and other
current assets 773,159 463,432
Decrease in accounts payable and
accrued expenses (1,287,714) 98,920
Increase (decrease) in contract deposits 33,597 (384,529)
Increase (decrease) in income taxes payable 158,352 293,825
Increase in deferred income taxes 320,805 659,077
- -------------------------------------------- ------------ ------------
Net cash provided by operating activities 11,615,399 12,315,254
- -------------------------------------------- ------------ ------------
Cash flows from investing activities:
Purchases of investments (21,141,960) (8,703,867)
Proceeds from maturity of investments 17,197,322 2,630,000
Decrease in equipment deposits 219,921
Additions to property, plant and
equipment (3,549,409) (1,296,964)
Additions to radioisotope (1,489,387) (3,836,276)
Deferred pre-operating costs incurred (83,255)
Other 34,945 54,216
- -------------------------------------------- ------------ ------------
Net cash used in investing activities (9,031,744) (10,932,970)
- -------------------------------------------- ------------ ------------
Cash flows from financing activities:
Payment of long-term debt (500,000) (725,000)
Purchases of treasury stock (1,275,944)
Proceeds of stock options exercised and
employee stock purchases 360,779 324,979
Other (93,098) 72,709
- -------------------------------------------- ------------ ------------
Net cash used in financing activities (1,508,263) (327,312)
- -------------------------------------------- ------------ ------------
Net increase in cash and cash
equivalents 1,075,392 1,054,972
Cash and cash equivalents at beginning of
year 5,961,473 2,949,572
- -------------------------------------------- ------------- ------------
Cash and cash equivalents at end of period $ 7,036,865 $ 4,004,544
- -------------------------------------------- ------------- ------------
Supplemental cash flow information:
- --------------------------------------------
Cash paid for interest $ 399,975 $ 363,624
- -------------------------------------------- ------------ ------------
Cash paid for income taxes $ 2,825,934 $ 3,140,155
- -------------------------------------------- ------------ ------------
Supplemental non-cash investing activities
- --------------------------------------------
Additions to radioisotope in satisfaction
of lease receivable $ 217,692
------------
</TABLE>
See accompanying notes to the consolidated financial statements.
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<PAGE> 9
ISOMEDIX INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. The interim consolidated financial statements reflect all adjustments,
consisting only of normal recurring accruals, which are, in the opinion of the
Company's management, necessary for a fair statement of results for the periods
presented. Operating revenues and net income for any interim period are not
necessarily indicative of results for a full year.
2. Earnings per share have been computed based upon the weighted average number
of shares of common stock outstanding during each period. For the three months
ended September 30, 1995 and 1994, the numbers of shares used in computing
earnings per share were 7,182,661 and 7,371,071, respectively. For the nine
months ended September 30, 1995 and 1994, the numbers of shares used in
computing earnings per share were 7,212,592 and 7,371,763, respectively.
3. As of September 30, 1995, the Company had total investments classified as
held-to-maturity of $21,054,282 with a market value of $20,998,259. The market
value is calculated using information provided by outside quotation services.
The Company's investments consist of debt instruments from various governmental
agencies with maturity dates ranging from October, 1995 to September, 1996.
For the nine months ended September 30, 1995, the unrealized holding losses were
$56,023. Management has concluded that the decline in fair value is temporary
and, therefore, no adjustment to the cost basis of the investments has been
recorded.
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<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.
ISOMEDIX INC.
(Registrant)
Date: November 15, 1995 /s/ Peter Mayer
------------------------------
Peter Mayer
President and Chief Executive Officer
Date: November 15, 1995 /s/ Thomas J. DeAngelo
------------------------------
Thomas J. DeAngelo
Vice President --
Finance and Administration and
Chief Financial Officer
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