FORM 10-Q
Securities and Exchange Commission
Washington, D. C. 20549
(Mark One)
X Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended : August 31, 1995
OR
_ Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Commission File Number : 0-14820
IMMUCOR, INC.
(Exact name of registrant as specified in its charter)
Georgia 22-2408354
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3130 Gateway Drive P.O. Box 5625 Norcross, Georgia 30091-5625
(Address of principal executive offices) (Zip Code)
Registrant's telephone number : (404) 441-2051
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
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
As of October 13, 1995: Common Stock, $.10 Par Value - 7,897,230
IMMUCOR, INC.
Balance Sheets
August 31 May 31
ASSETS 1995 1995
(Unaudited) (Audited)
Current assets:
Cash and cash equivalents $18,821,966 $18,741,681
Accounts receivable, net 8,235,586 8,009,967
Inventories 5,558,453 5,469,966
Income tax receivable 33,105 76,455
Deferred income taxes 257,114 250,387
Other 899,631 720,592
Total current assets 33,805,855 33,269,048
Long-term investment 1,000,000 1,000,000
Property, plant and equipment, at cost 5,290,084 5,222,975
less accumulated depreciation (2,533,520) (2,364,503)
2,756,564 2,858,472
Other 382,794 353,043
Excess of cost over net tangible
assets acquired 6,160,004 6,498,679
$44,105,217 $43,979,242
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank loans $284,728 $241,639
Accounts payable 2,430,070 2,425,510
Income taxes payable 827,771 519,708
Accrued salaries and wages 511,025 683,032
Other accrued liabilities 261,175 298,101
Total current liabilities 4,314,769 4,167,990
Long-term debt 5,114,218 5,744,238
Shareholders' equity:
Common stock, $.10 par value 982,222 981,780
Additional paid-in capital 27,047,662 27,031,185
Retained earnings 16,052,142 15,256,375
Cost of shares held in treasury (8,455,035) (8,455,035)
Cumulative translation adjustment (950,761) (747,291)
Total equity 34,676,230 34,067,014
$44,105,217 $43,979,242
See accompanying notes.
IMMUCOR, INC.
Statements of Income
(Unaudited)
Three Months Ended
August 31, August 31,
1995 1994
Net sales $7,475,927 $7,189,230
Cost of sales 2,762,231 2,892,979
Gross profit 4,713,696 4,296,251
Research and development
Instrument 133,738 156,033
General 123,768 119,757
Selling, general and administrative 3,322,559 2,924,108
Total operating expenses 3,580,065 3,199,898
Income from operations 1,133,631 1,096,353
Other income 177,987 153,144
Interest expense (93,999) (140,391)
Other expense (250) (2,453)
Total other 83,738 10,300
Income before income taxes 1,217,369 1,106,653
Provision for income taxes 421,602 437,970
Net income $795,767 $668,683
Net income per common
and common equivalent share $0.09 $0.09
Weighted average number of common
and common equivalent shares
outstanding 8,814,167 7,747,849
See accompanying notes.
IMMUCOR, INC.
Statements of Cash Flows
(Unaudited)
Three Months Ended
August 31, August 31,
1995 1994
OPERATING ACTIVITIES:
Net income $795,767 $668,683
Adjustments to reconcile net income to
net cash provided by operations:
Depreciation 190,214 217,884
Amortization 27,726 88,352
Changes in assets and liabilities:
Accounts receivable (225,618) (54,342)
Inventories (88,487) 284,744
Other assets (154,881) (100,172)
Accounts payable 4,559 (416,291)
Accrued salaries and wages (172,007) (39,491)
Taxes payable 308,063 309,948
Accrued liabilities (36,925) (3,614)
Cash provided by operating activities 648,411 955,701
INVESTING ACTIVITIES:
Purchases of/deposits on property
and equipment (108,946) (199,728)
Other 4,044 40,000
Cash used in investing activities (104,902) (159,728)
FINANCING ACTIVITIES:
Repayment of bank loans (362,266) (408,493)
Proceeds from line of credit 43,088
Exercise of stock options 16,919
Cash provided/(used) in financing
activities (302,259) (408,493)
Effect of exchange rate changes on cash (160,965) 54,615
INCREASE IN CASH AND CASH EQUIVALENTS 80,285 442,095
CASH AND CASH EQUIVALENTS
AT BEGINNING OF PERIOD 18,741,681 18,303,252
CASH AND CASH EQUIVALENTS
AT END OF PERIOD $18,821,966 $18,745,347
See accompanying notes.
IMMUCOR, INC.
Notes to Financial Statements
(Unaudited)
1. In the opinion of management, the information furnished reflects all
adjustments (consisting only of normal recurring adjustments) necessary for
a fair presentation of the results for the interim periods. Revenues from
product sales are recognized at the time of shipment.
2. Inventories are stated at the lower of first-in, first-out cost or
market:
As of August 31, 1995 As of May 31, 1995
Raw materials and supplies $1,606,097 $1,551,354
Work in process 759,557 819,296
Finished goods 3,192,799 3,099,316
3. Net income per common share:
Net income per common share is computed using the weighted average
number of common shares and dilutive common share equivalents outstanding
during the respective periods. There is no significant difference between
primary and fully diluted per share amounts.
4. Domestic and foreign operations:
Information concerning the Company's domestic and foreign operations
is summarized below:
Three Months Ended August 31, 1995:
Net Revenues United States Europe Eliminations Consolidated
Unaffiliated customers $3,981,417 $3,494,510 $7,475,927
Affiliates 943,049 19,229 $(962,278)
Total 4,924,466 3,513,739 (962,278) 7,475,927
Income from operations 995,038 156,779 18,186 1,133,631
Identifiable assets 28,070,201 17,254,209 (1,219,193) 44,105,217
Sales to affiliates are valued at market prices.
5. Accounting for income taxes:
The provision for income tax expense for the three months ended
August 31, 1995 was $421,602. The information required to determine the
current and deferred portion of this provision was not available.
IMMUCOR, INC.
ITEM 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
Financial Condition and Liquidity:
As of August 31, 1995, the Company's cash position totaled $18,821,966.
During the three months ended August 31, 1995, the Company repaid $362,266
(500,000 DM) of bank debt in Germany.
The Company does not have any material capital commitments nor
short-term debt obligations. Management believes that the Company's current
cash balance, internally generated funds, and amounts available under the
lines of credit are sufficient to support operations for the foreseeable
future. Management also believes additional credit lines would be available
should the need arise.
Results of Operations:
Net sales
Net sales for the three months ended August 31, 1995 totaled $7,475,927
versus $7,189,230 in the comparable prior year three month period.
Approximately one-half of the sales increase was due to a weaker dollar, as
compared to last year, which increased the dollar equivalent of the Company's
sales generated in German marks. Approximately one-half of the Company's
sales originate in Europe, and Management believes this trend will continue.
The remainder of the sales increase was caused by higher sales of the
Company's Capture(registered trademark) products.
Gross profit
As a percent of sales, gross profit for the three months ended August 31,
1995 totaled 63.1% versus 59.8% last year. The improvement in gross profit
margin was principally caused by favorable rates of foreign exchange in
Germany which reduced the cost of goods purchased in U.S. dollars and sold
in local currencies.
Operating expenses
Selling, general and administrative expenses for the three month period
ended August 31, 1995 increased $398,500 over the same period last year.
Approximately one-half of the increase was due to a weaker U.S. dollar which
caused an increase in the dollar equivalent of operating expenses incurred in
German marks. The remainder of the increase is attributed to the addition of
sales staff in the U.S., and marketing related expenses both in the U.S. and
in Europe.
Interest expense
Interest expense declined $46,400 in the current year three month period
as compared to last year. This decline was due to the Company refinancing
its Deutsche Mark denominated debt and reducing its outstanding principal
loan balance as compared to last year.
Net Income
Although net income for the three month period ending August 31, 1995,
increased $127,000, or 19.0%, over the prior year three month period, net
income per common and common equivalent share remained the same. The
weighted average number of common and common equivalent shares outstanding
for the 1995 three month period totaled 8,814,167, compared to 7,747,849 in
the prior year. While the actual number of common shares outstanding
remained essentially the same during both periods, the number of stock
options and warrants assumed exercised increased due to the rise in the
Company's stock price during the current year three month period.
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
(a) The Company has filed the following exhibits with this report:
11 Statement re computation of per share earnings.
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.
IMMUCOR, INC.
(Registrant)
Date: October 12, 1995
/s/Edward L. Gallup_____________Edward L. Gallup, President
/s/Richard J. Still_______________ Richard J. Still, Senior Vice
President - Finance
(Principal Accounting Officer)
IMMUCOR, INC.
EXHIBITS
Exhibit 11. Statement re computation of per share earnings.
Income per share calculations:
Three Months Ended
August 31, August 31,
1995 1994
Net income $795,767 $668,683
Weighted average number of common
shares and common share equivalents
are as follows:
Weighted average common shares
outstanding 7,707,847 7,691,831
Shares issued from assumed exercise
of options and warrants 1,106,320 56,018
Weighted average number of shares
outstanding (as adjusted) 8,814,167 7,747,849
Net income per common
and common equivalent share: $0.09 $0.09
Note: shares issued from assumed exercise of options and warrants include
the number of incremental shares which result from applying the "treasury
stock method" for options and warrants in 1995 and 1994, APB 15, paragraph 36.
There is no difference between primary and fully diluted per share amounts.
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