<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
June 30, 1995
AMISTAR CORPORATION
-------------------
(Exact name of registrant as specified in its Charter)
State of California 95-2747332
---------------------------------------- ---------------------------
(State or other jurisdiction of (I.R.S. Employer
Incorporation or organization) Identification No.)
237 Via Vera Cruz 92069
---------------------------
San Marcos, California (Zip Code)
Registrant's telephone number, including area code (619) 471-1700
--------------
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
--- ---
Class Outstanding at Aug 10, 1995
------------------------------ ---------------------------
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>
June 30, December 31,
1995* 1994
--------- ------------
<S> <C> <C>
ASSETS
Current Assets:
Cash $ 1,186 $ 1,671
Account Receivable, Net 5,313 4,237
Inventories 5,270 5,572
Demo Equipment 998 549
Prepaid Expenses 340 207
---------------------------
Total Current Assets 13,107 12,236
Property & Equipment
Cost 10,379 10,366
Less Depr. & Amortization 5,723 5,546
---------------------------
4,656 4,820
Contracts Receivable 321 256
Other 18 117
---------------------------
$18,102 $17,429
===========================
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities
Accts. Payable & Accrued Exp. 2,303 2,383
Industrial Development Bond 4,500 4,500
Income Taxes Payable 15 62
---------------------------
Total Current Liabilities 6,818 6,945
Shareholders' Equity
Common Stock 32 32
Paid in Surplus 4,771 4,771
Retained Earnings 6,481 5,681
---------------------------
Total Shareholders' Equity 11,284 10,484
$18,102 $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 Six Months Ended
June 30, June 30,
1995 1994 1995 1994
----------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
Net Sales $ 6,542 $ 5,054 $ 12,041 $ 8,369
Cost of Sales 4,412 3,302 8,120 5,381
------------------------------------------------------
Gross Income 2,130 1,752 3,921 2,988
Other Costs
Selling Expenses 1,113 948 2,101 1,840
Research & Development 236 373 446 725
General & Administrative 271 234 525 458
------------------------------------------------------
1,620 1,555 3,072 3,023
Operating Income (Loss) 510 197 849 (35)
Non Operating Inc. (Exp.) (20) 2 (35) (22)
------------------------------------------------------
Income (Loss) Before Tax 490 199 814 (57)
Income Taxes (Benefit) 10 0 15 0
------------------------------------------------------
Net Income (Loss) $ 480 $ 199 $ 799 (57)
======================================================
Net Income (Loss) Per Share $.15 $.06 $.25 $(.02)
Weighted Average Number of Shares 3,189,750 3,132,500 3,189,750 3,132,500
Outstanding
</TABLE>
See accompanying notes to financial statements.
<PAGE>
AMISTAR CORPORATION
Statement of Cash Flows
(Unaudited and in thousands of dollars)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
1995 1994
-------- -------
<S> <C> <C>
Cash flows from operating activities:
Net earnings (loss) $ 799 $ (57)
Adjustments to reconcile net income to
net cash provided (used) by operating
activities:
Depreciation & amortization $ 195 $ 326
Gain on sale of equipment (10) (21)
Changes in assets & liabilities
Accounts receivable (1,076) (33)
Inventories 302 (428)
Demo equipment (449) (24)
Prepaid expense and other assets (34) (115)
Accounts payable & accrued expense (80) 587
Income tax payable (47) (4)
--------------------
(1,199) 288
Cash provided by operating activities (400) 231
Cash flows from investing activities:
Proceeds from sale of equipment 10 28
Capital expenditures (30) (76)
--------------------
(20) (48)
Cash flows from financing activities:
Contracts receivable (65) (48)
Net increase (decrease) in cash (485) 135
Cash at the beginning of the period 1,671 2,689
--------------------
Cash at the end of the period $ 1,186 $2,824
Supplemental disclosure of cash flow
information
Cash paid (refund) during the period
for:
Interest $ 97 $ 66
------- ------
Income tax $ 14 $ 0
------- ------
</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 June 30, 1995 and
December 31, 1994, and the results of its operations for the six month
period ending June 30, 1995 and 1994, and the statement of cash flows for
the six month period ending June 30, 1995 and 1994.
Note 3
The components of inventory are as follows:
<TABLE>
<CAPTION>
June 30, 1995 December 31, 1994
<S> <C> <C> <C>
Raw Material $ 693,000 $ 725,000
Work in Process 2,445,000 2,563,000
Finished Goods 2,132,000 2,284,000
---------------- --------------
$5,270,000 $ 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 $480,000 during the three month
period ended June 30, 1995 as a result of income from operations. This compares
with the same period in the prior year when shareholders equity decreased
$57,000 as a result of losses from operations. Net receivables at June 30, 1995
were $5,313,000 compared to $4,237,000 on December 31, 1994 and $3,115,000 on
June 30, 1994. Receivables are higher at June 30, 1995 than at December 31, 1994
and at June 30, 1994 because of increased sales. Inventories changed very
little during the quarter, however demonstration equipment increased by $32,000.
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 $14,000.
Depreciation for the quarter was $99,000.
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 negotiation with a financial institution and believes that
refinancing will be completed before the bonds mature. It is
<PAGE>
unknown what the interest rate on the new financing will be. In addition, the
Company is in negotiation with a financial institution 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.
Material Changes in Results of Operations
Net sales for the three months ended June 30, 1995 were $6,542,000 compared to
$5,054,000 for the same period one year ago. Sales of Amistar machines, private
label products, spare parts and custom assembly were all up over the same period
in 1994. One Placemaster was shipped during the quarter. There was a net
income of $480,000 for the quarter compared to net income of $199,000 for the
comparable period in 1994. Gross margins decreased from 35% to 33% for the
quarter compared to the same period one year ago. This reduction in gross
margin is due primarily to the reduced margins earned on initial shipments of
PlaceMasters. Research and development costs are down significantly from the
like period in 1994. It is unknown if this reduction will effect future sales.
Selling expenses and general and administrative expenses decreased as a
percentage of sales over the same period in 1994. Non-operating expenses
include interest expense, interest income, and gain or loss on the sale of fixed
assets. Income taxes are minimal due to utilization of tax benefits from loss
carry forwards from prior years.
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
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> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 1,186
<SECURITIES> 0
<RECEIVABLES> 5,313
<ALLOWANCES> 0
<INVENTORY> 5,270
<CURRENT-ASSETS> 13,107
<PP&E> 10,379
<DEPRECIATION> 5,723
<TOTAL-ASSETS> 18,102
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 32
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 18,102
<SALES> 12,041
<TOTAL-REVENUES> 12,041
<CGS> 8,120
<TOTAL-COSTS> 8,120
<OTHER-EXPENSES> 3,072
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 97
<INCOME-PRETAX> 814
<INCOME-TAX> 15
<INCOME-CONTINUING> 799
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 799
<EPS-PRIMARY> .25
<EPS-DILUTED> .25
</TABLE>
