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 : November 30, 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 : (770) 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 January 12, 1996: Common Stock, $.10 Par Value - 7,903,075
IMMUCOR, INC.
Balance Sheets
November 30 May 31
ASSETS 1995 1995
(Unaudited) (Audited)
Current assets:
Cash and cash equivalents $19,103,690 $18,741,681
Accounts receivable, net 8,366,548 8,009,967
Inventories 6,029,644 5,469,966
Income tax receivable 34,030 76,455
Deferred income taxes 249,290 250,387
Other 1,006,488 720,592
Total current assets 34,789,690 33,269,048
Long-term investment 1,000,000 1,000,000
Property, plant & equipment at cost 5,837,625 5,222,975
less accumulated depreciation (2,786,999) (2,364,503)
3,050,626 2,858,472
Other 571,290 353,043
Excess of cost over net tangible
assets acquired 6,273,381 6,498,679
$45,684,987 $43,979,242
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank loans $247,510 $241,639
Accounts payable 2,837,203 2,425,510
Income taxes payable 244,356 519,708
Accrued salaries and wages 552,987 683,032
Other accrued liabilities 160,325 298,101
Total current liabilities 4,042,381 4,167,990
Long-term debt 4,941,060 5,744,238
Shareholders' equity:
Common stock, $.10 par value 1,001,473 981,780
Additional paid-in capital 28,154,797 27,031,185
Retained earnings 16,802,335 15,256,375
Cost of shares held in treasury (8,466,284) (8,455,035)
Cumulative translation adjustment (790,775) (747,291)
Total equity 36,701,546 34,067,014
$45,684,987 $43,979,242
See accompanying notes.
IMMUCOR, INC.
Statements of Income
(Unaudited)
Three Months Ended Six Months Ended
November 30,November 30, November 30, November 30,
1995 1994 1995 1994
Net sales $7,282,304 $7,052,529 $14,758,231 $14,241,759
Cost of sales 2,712,022 2,905,948 5,474,253 5,798,927
Gross profit 4,570,282 4,146,581 9,283,978 8,442,832
Research & development:
Instrument 106,917 186,224 240,655 342,257
General 119,964 122,469 243,732 242,226
Selling, general & admin 3,381,301 3,077,015 6,703,860 6,001,123
Total operating expenses 3,608,182 3,385,708 7,188,247 6,585,606
Income from operations 962,100 760,873 2,095,731 1,857,226
Other income 206,064 158,743 384,051 311,887
Interest expense (75,329) (119,442) (169,328) (259,833)
Other expense (250) (2,453)
Total other 130,735 39,301 214,473 49,601
Inc before income taxes 1,092,835 800,174 2,310,204 1,906,827
Provision for income taxes 342,642 332,268 764,244 770,238
Net income $750,193 $467,906 $1,545,960 $1,136,589
Net income per common
& common equivalent share $0.09 $0.06 $0.18 $0.15
Weighted average number of common
and common equivalent shares
outstanding 8,705,134 7,775,207 8,759,651 7,761,528
See accompanying notes.
IMMUCOR, INC.
Statements of Cash Flows
(Unaudited)
Six Months Ended
November 30, November 30,
1995 1994
OPERATING ACTIVITIES:
Net income $1,545,960 $1,136,589
Adjustments to reconcile net income to
net cash provided by operations:
Depreciation 486,980 355,499
Amortization 130,002 157,469
Changes in assets and liabilities:
Accounts receivable (273,211) (137,849)
Inventories (559,678) 598,148
Other assets (254,490) (68,247)
Accounts payable 329,230 (375,894)
Other current liabilities (543,173) 3,532
Cash provided by operating activities 861,620 1,669,247
INVESTING ACTIVITIES:
Purchase of/deposits on property and
equipment (893,774) (354,820)
Other 8,178 40,000
Cash used in investing activities (885,596) (314,820)
FINANCING ACTIVITIES:
Proceeds from line of credit 5,871
Repayment of bank loans (717,002) (545,555)
Exercise of stock options 1,132,056
Cash provided by/(used) in financing
activities 420,925 (545,555)
Effect of exchange rate changes on cash (34,940) (41,805)
INCREASE IN CASH AND CASH EQUIVALENTS 362,009 767,067
CASH AND CASH EQUIVALENTS
AT BEGINNING OF PERIOD 18,741,681 18,303,252
CASH AND CASH EQUIVALENTS
AT END OF PERIOD $19,103,690 $19,070,319
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 November 30, 1995 As of May 31, 1995
Raw materials and supplies $1,617,409 $1,551,354
Work in process 966,585 819,296
Finished goods 3,445,650 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. Common share and common share equivalents were 8,705,134
and 8,759,651 in the 1995 three and six month comparable periods, and
7,775,207 and 7,761,528 in the 1994 three and six month 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 November 30, 1995:
Net Revenues United States Europe Eliminations Consolidated
Unaffiliated customers $3,710,658 $3,571,646 $7,282,304
Affiliates 791,787 30,629 $(822,416)
Total 4,502,445 3,602,275 (822,416) 7,282,304
Income from operations 652,921 288,029 21,150 962,100
Identifiable assets 29,395,947 18,325,328 (2,036,288) 45,684,987
Six Months Ended November 30, 1995:
Net Revenues United States Europe Eliminations Consolidated
Unaffiliated customers $7,692,075 $7,066,156 $14,758,231
Affiliates 1,734,836 49,858 $(1,784,694)
Total 9,426,911 7,116,014 (1,784,694) 14,758,231
Income from operations 1,647,959 444,808 2,964 2,095,731
Identifiable assets 29,395,947 18,325,328 (2,036,288) 45,684,987
Sales to affiliates are valued at market prices.
5. Accounting for income taxes:
The provision for income tax expense for the three months and six months
ended November 30, 1995 was $342,642, and $764,244 respectively. The
information required to determine the current and deferred portion of these
provisions 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 November 30, 1995, the Company's cash position totaled $19,103,690.
For the six months ended November 30 1995, the Company generated cash from
operating activities of $861,600 and repaid $717,000 (1,000,000 DM) of bank
debt in Germany.
The Company does not have any material capital commitments. 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 November 30, 1995 totaled $7,282,300
versus $7,052,500 in the comparable prior year three month period. For the six
months ended November 30, 1995, net sales were $14,758,200 compared to
$14,241,800 in the prior year. Approximately one-half of the increase in sales
during the three months ended November 30, 1995, compared to the same three
month period in the prior year, 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. The remaining increase was caused by higher sales of the
Company's Capturer product line partially offset by a decline in the sales of
more traditional blood bank reagents. Sales of traditional blood bank products
declined due to continuing competitive pricing pressures in the health care
environment.
Gross profit
As a percent of sales revenue, gross profit increased for the three month
and six month period ended November 30, 1995, when compared to the same
period ended November 30, 1994. The increase in gross profit margin can be
attributed to favorable rates of foreign exchange in Germany, and higher sales
of the Company's Capturer product line which have a higher gross profit than
the more traditional blood bank reagent products.
Operating expenses
Selling, general and administrative expense for the three and six month
period ended November 30, 1995, increased $304,300 and $702,700 respectively,
compared to the 1994 periods. The increase was principally caused by higher
levels of sales and marketing related expenses, including advertising,
increased sales staff in the U.S., and additional marketing personnel. Also,
a weaker U.S. dollar caused an increase in the dollar equivalent of operating
expenses incurred in German marks.
Interest expense
Interest expense declined $44,100 during the three months ended
November 30, 1995, and $90,500 in the six months ended November 30,1995, as
compared to the same three and six month periods last year. The decline in
interest expense was primarily due to the Company reducing its outstanding
principal loan balance in Germany (see Financial Condition and Liquidity.)
Provision for Income Taxes
As a percent of pretax income, the provision for income taxes declined
during the three months ended November 30, 1995, over the prior year, and a
similar decline occurred for the six month period. The Company's operations
in Europe generated a positive contribution to pretax income in the current year
versus a loss in the prior year. However, no provision for income taxes was
recorded in Europe in the current year as European operations had sufficient
net operating loss carryforwards to offset the tax liability created by
current year income.
PART II - OTHER INFORMATION
Item 4. Submission of matters to a vote of security holders.
The annual meeting of shareholders of Immucor, Inc. was held on Thursday,
December 7, 1995. The shareholders elected the following eight directors to
constitute the Board of Directors and to serve until the next annual meeting
and thereafter until their successors have been elected and have been
qualified: Edward L. Gallup, Ralph A. Eatz, Richard J. Still, Daniel T.
McKeithan, Didier Lanson, Dr. Gioacchino De Chirico, Josef Wilms, and G. Bruce
Papesh.
Item 6. Exhibits and Reports on Form 8-K.
(a) The Company has filed the following exhibits with this report:
11.1 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: January 12, 1996
/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 11.1 Statement re computation of per share earnings.
Primary income per share calculations:
Three Months Ended Six Months Ended
Nov 30, Nov 30, Nov 30, Nov 30,
1995 1994 1995 1994
Net income $750,193 $467,906 $1,545,960 $1,136,589
Weighted average number of common
shares and common share
equivalents are as follows:
Weighted average common shares
outstanding 7,875,143 7,691,831 7,791,495 7,691,831
Shares issued from assumed exercise of
options and warrants 829,991 83,376 797,307 69,697
Weighted average number of shares
outstanding (as adjusted) 8,705,134 7,775,207 8,588,802 7,761,528
Net income per common
and common equivalent share $0.09 $0.06 $0.18 $0.15
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.
IMMUCOR, INC.
EXHIBITS
Exhibit 11.1 Statement re computation of per share earnings.
(continued)
Fully diluted income per share calculations:
Three Months Ended Six Months Ended
Nov 30, Nov 30, Nov 30, Nov 30,
1995 1994 1995 1994
Net income $750,193 $467,906 $1,545,960 $1,136,589
Weighted average number of common
shares and common share
equivalents are as follows:
Weighted average common shares
outstanding 7,875,143 7,691,831 7,791,495 7,691,831
Shares issued from assumed exercise of
options and warrants 829,991 83,376 968,156 69,697
Weighted average number of shares
outstanding (as adjusted) 8,705,134 7,775,207 8,759,651 7,761,528
Net income per common
and common equivalent share $0.09 $0.06 $0.18 $0.15
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.
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