<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
Form 10-Q
Quarterly Report pursuant to Section 13 or 15(d)
of the Securities Act of 1934
For the Quarter Ended Commission File No. 0-13403
March 31, 1995
AMISTAR CORPORATION
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(Exact name of registrant as specified in its Charter)
State of California 95-2747332
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(State or other jurisdiction of (I.R.S. Employer Identification
Incorporation or organization) No.)
237 Via Vera Cruz
San Marcos, California 92069
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(Zip Code)
Registrant's telephone number, including area code (619) 471-1700
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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 ___
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Class Outstanding at Apr 28, 1995
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Common Stock $.01 Par Value 3,189,750
<PAGE>
PART 1.
Item 1. Financial Statement
AMISTAR CORPORATION
Condensed Balance Sheets
(in thousands of dollars)
<TABLE>
<CAPTION>
March 31, December 31,
1995* 1994
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<S> <C> <C>
ASSETS
Current Assets:
Cash $ 1,545 $ 1,671
Receivables, Net 4,665 4,237
Inventories 5,272 5,572
Demo Equipment 964 549
Other 260 207
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Total Current Assets 12,706 12,236
Property & Equipment
Cost 10,251 10,366
Less Depr. & Amortization 5,510 5,546
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4,741 4,820
Contracts Receivable 236 256
Other 10 117
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$17,693 $17,429
======= =======
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities
Accts. Payable & Accrued Exp. 2,418 2,383
Industrial Development Bond 4,500 4,500
Income Taxes (29) 62
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Total Current Liabilities 6,889 6,945
Shareholders' Equity
Common Stock 32 32
Paid in Surplus 4,771 4,771
Retained Earnings 6,001 5,681
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Total Shareholders' Equity 10,804 10,484
$17,693 $17,429
======= =======
</TABLE>
*Unaudited
See accompanying notes to financial statements
<PAGE>
AMISTAR CORPORATION
Condensed Statements of Earnings
(Unaudited and in thousands except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1995 1994
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<S> <C> <C>
Net Sales $ 5,498 $ 3,315
Cost of Sales 3,707 2,079
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Gross Profit 1,791 1,236
Other Costs
Selling Costs 988 892
Research & Development 210 352
General & Administrative 253 224
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1,451 1,468
Operating Profit (Loss) 340 (232)
Non Operating Expense 16 24
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Income (Loss) Before Tax 324 (256)
Income Taxes 5 0
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Net Income (Loss) 319 (256)
========== ==========
Net Income (Loss) Per Share $.10 $(.08)
Weighted Average Number of Shares
Outstanding 3,189,750 3,132,500
========== ==========
</TABLE>
See Accompanying notes to financial statements.
<PAGE>
AMISTAR CORPORATION
Statement of Cash Flows
(Unaudited and in thousands of dollars)
<TABLE>
<CAPTION>
Three Months
Ended
March 31,
1995 1994
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<S> <C> <C>
Cash flows from operating activities:
Net earnings (loss) $ 319 $ (256)
Adjustments to reconcile net earnings
to net cash provided (used) by
operating activities:
Depreciation & amortization 96 167
Gain on sale of equipment 0 (2)
Changes in assets & liabilities
Accounts receivable (428) (218)
Income tax refund 0 0
Inventories 300 (414)
Demo equipment (415) (316)
Prepaid expense and other assets 54 242
Accounts payable & accrued 35 378
liabilities
Income tax payable (91) (10)
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(449) (173)
Cash provided by operating activities (130) (429)
Cash flows from investing activities:
Proceeds from sale of equipment 0 2
Capital expenditures (16) (17)
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(16) (15)
Cash flows from financing activities:
Contracts receivable 20 27
Net increase (decrease) in chase (126) (417)
Cash at the beginning of the period 1,671 2,689
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Cash at the end of the period $1,545 $2,272
Supplemental disclosure of cash flow
information
Cash paid (refund) during the period
for:
Interest $ 48 $ 48
Income tax $ 9 $ 9
</TABLE>
See accompanying Notes to financial statements.
<PAGE>
AMISTAR CORPORATION
Notes to Condensed Financial Statements
Note 1
As contemplated by the Securities and Exchange Commission under Rule 10-01
of Regulation S-X, the accompanying financial statements and footnotes have
been condensed and therefore do not contain all disclosures required by
generally accepted accounting principles.
Note 2
In the opinion of the Company, the accompanying unaudited financial
statements contain adjustments, all of which are normal and recurring,
necessary to present fairly its financial position as of Mar. 31, 1995 and
December 31, 1994, and the results of its operations for the three month
period ending Mar. 31, 1995 and 1994, and the statement of cash flows for
the three month period ending Mar. 31, 1995 and 1994.
Note 3
The make up of inventory is as follows:
<TABLE>
<CAPTION>
March 31, 1995 December 31, 1994
<S> <C> <C> <C>
Raw Material $ 685,000 $ 725,000
Work in Process 2,425,000 2,563,000
Finished Goods 2,162,000 2,284,000
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$5,272,000 $ 5,572,000
</TABLE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
Material Change in Financial Condition
Shareholders equity in the Company increased $319,000 during the three month
period ended Mar. 31, 1995 as a result of income from operations. This compares
with the same period in the prior year when shareholders equity decreased
$256,000 as a result of losses from operations. Net receivables at March 31,
1995 were $4,665,000 compared to $4,237,000 on December 31, 1994 and
$3,300,000on March 31, 1994. Receivables are higher than at December 31, 1994
and at March 31, 1994 because of increased sales. Inventories decreased
$300,000 during the quarter, however demonstration equipment increased by
$415,000. The large increase is because one PlaceMaster unit was shipped to a
show in Europe. Demonstration equipment is shown at cost and is carried as a
current asset as it is the Company's practice to sell and replace demo machines
on a regular schedule. Expenditures for the quarter for plant and equipment
were $16,000. Depreciation for the quarter was $96,000.
The San Marcos manufacturing and office facility is financed by $4,500,000 of
bonds issued by the Industrial Development Authority of the City of San Marcos.
These bonds mature December 19, 1995 and are unconditionally guaranteed by an
irrevocable letter of credit issued by a bank. This letter of credit matured in
December 1992. The bank agreed to extend the letter of credit until December
19, 1995. One of the conditions of the extention was that the Company give the
bank a lien on all of the Company's assets. In 1995 the Company must replace
these bonds with some type of alternate financing. Currently the Company is
engaged in exploratory talks with real estate mortgage brokers and financial
institutions and believes that traditional real estate financing is available.
It is anticipated that the interest rate on the new financing will be much
higher than that of the
<PAGE>
Industrial Development Bonds. In addition the Company is engaged in exporatory
talks with several financial institutions in an effort to secure a working
capital line of credit. The Company befieves that it will be successful in its
negotiations and therefore will have sufficient cash and facilities to meet its
requirements in 1995, however there are no assurances that the Company will be
able to secure alternative financing on acceptable terms, or at all.
Material Changes in Results of Operations
Net sales for the three months ended Mar. 31, 1995 were $5,498,000 compared to
$3,315,000 for the same period one year ago. Sales of private label products,
spare parts and custom assembly were all up over the same period in 1994. No
Placemasters(TM) were shipped during the quarter. There was a net income of
$319,000 for the quarter compared to net losses of $256,000 for the same period
one year ago. Gross margins decreased from 37% to 33% for the quarter compared
to the like period one year ago. This reduction in gross margin is due
primarily to the reduced margins earned on private label product sales which
represented over half of the Company's sales volumne for the quarter. Research
and development costs are down significantly from the like period in 1994
because PlaceMaster(TM) development effort changed to sustaining engineering and
product enhancement, and new product development required less resources. Sales
expense and general and administrative expenses increased over the like period
in 1994, however as a percentage of sales they decreased. Non operating expenses
include interest expense, interest income, and gain or loss on the sale of fixed
assets.
PART II.
Items 1-6 Non Applicable
<PAGE>
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.
AMISTAR CORPORATION
By/s/ William W. Holl
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William W. Holl
Vice President - Finance
Chief Accounting Officer &
Duly Authorized Officer
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<CASH> 1,545
<SECURITIES> 0
<RECEIVABLES> 4,665
<ALLOWANCES> 0
<INVENTORY> 5,272
<CURRENT-ASSETS> 12,706
<PP&E> 10,251
<DEPRECIATION> 5,510
<TOTAL-ASSETS> 17,693
<CURRENT-LIABILITIES> 6,889
<BONDS> 0
<COMMON> 32
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 17,693
<SALES> 5,498
<TOTAL-REVENUES> 5,498
<CGS> 3,707
<TOTAL-COSTS> 3,707
<OTHER-EXPENSES> 1,451
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 48
<INCOME-PRETAX> 324
<INCOME-TAX> 5
<INCOME-CONTINUING> 319
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 319
<EPS-PRIMARY> .10
<EPS-DILUTED> .10
</TABLE>
