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Previous: ASPEN IMAGING INTERNATIONAL INC, 10-Q, 1995-11-14 |
Next: ANCHOR FINANCIAL CORP, 10-Q, 1995-11-14 |
<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
September 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 Identification
Incorporation or organization) 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 Nov 10, 1995
----- ---------------------------
Common Stock $.01 Par Value 3,190,750
<PAGE>
PART 1.
Item 1. Financial Statement
AMISTAR CORPORATION
Condensed Balance Sheets
(in thousands of dollars)
<TABLE>
<CAPTION>
September 30, December 31,
1995* 1994
----- ----
<S> <C> <C>
ASSETS
Current Assets:
Cash $ 2,554 $ 1,671
Account Receivable, Net 5,021 4,237
Inventories 4,887 5,572
Demo Equipment 1,029 549
Prepaid Expenses 232 207
-------- --------
Total Current Assets 13,723 12,236
Property & Equipment
Cost 10,385 10,366
Less Depr. & Amortization 5,830 5,546
-------- --------
4,555 4,820
Contracts Receivable 260 256
Other 10 117
-------- --------
$18,548 $17,429
-------- --------
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities
Accts. Payable & Accrued Exp. 2,066 2,383
Industrial Development Bond 4,500 4,500
Income Taxes Payable 59 62
-------- --------
Total Current Liabilities 6,625 6,945
Shareholders' Equity
Common Stock 32 32
Paid in Surplus 4,771 4,771
Retained Earnings 7,120 5,681
-------- --------
Total Shareholders' Equity 11,923 10,484
$18,548 $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 Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net Sales $ 7,477 $ 4,848 $ 19,518 $ 13,217
Cost of Sales 5,273 3,076 13,393 8,457
----- ----- ------ -----
Gross Income 2,204 1,772 6,125 4,760
Other Costs
Selling Expenses 1,020 927 3,121 2,767
Research & Development 221 357 667 1,082
General & Administrative 256 226 781 684
--------- --------- --------- ---------
1,497 1,510 4,569 4,533
Operating Income (Loss) 707 262 1,556 227
Non Operating Inc. (Exp.) (19) (17) (54) (39)
--------- --------- --------- ---------
Income (Loss) Before Tax 688 245 1,502 188
Income Taxes (Benefit) 50 0 65 0
--------- --------- ------------ ------------
Net Income (Loss) $ 638 $ 245 $ 1,437 $ 188
============ ============ ============ ============
Net Income (Loss) Per Share $ .20 $ .08 $ .45 $ .06
----------- ------------- ------------ ------------
Weighted Average Number of Shares 3,190,750 3,132,500 3,190,750 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>
Nine Months Ended
September 30,
1995 1994
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net earnings (loss) $ 1,437 $ 188
Adjustments to reconcile net income to net cash provided (used) by operating activities:
Depreciation & amortization 302 477
Gain on sale of equipment (10) (21)
Changes in assets & liabilities
Accounts receivable (784) (1,132)
Inventories 685 (1,162)
Demo equipment (480) (22)
Prepaid expense and other assets (25) (37)
Accounts payable & accrued expense (317) 1,326
Other assetes 107 0
Income tax payable (3) 2
------------ ------------
(525) (569)
Cash provided by operating activities 912 (381)
Cash flows from investing activities:
Proceeds from sale of equipment 10 103
Capital expenditures (35) (83)
------------ ------------
(25) 20
Cash flows from financing activities:
Contracts receivable (4) 33
Net increase (decrease) in cash 883 (328)
Cash at the beginning of the period 1,671 2,689
------------ ------------
Cash at the end of the period $ 2,554 $ 2,361
Supplemental disclosure of cash flow information
Cash paid (refund) during the period for:
Interest $ 143 $ 104
------------
Income tax $ 15 ($_______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 Sept. 30, 1995 and
December 31, 1994, and the results of its operations for the nine month
period ending Sept. 30, 1995 and 1994, and the statement of cash flows for
the nine month period ending Sept. 30, 1995 and 1994.
Note 3
The components of inventory are as follows:
<TABLE>
<CAPTION>
Sept. 30, 1995 December 31, 1994
<S> <C> <C>
Raw Material $ 636,000 $ 725,000
Work in Process 2,248,000 2,563,000
Finished Goods 2,003,000 2,284,000
------------ -------------
$ 4,887,000 $ 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 $638,000 during the three month
period ended Sept. 30, 1995 as a result of income from operations. This
compares with the same period in the prior year when shareholders equity
increased $188,000 as a result of income from operations. Net receivables at
Sept. 30, 1995 were $5,021,000 compared to $4,237,000 on December 31, 1994 and
$4,214,000 on Sept. 30, 1994. Receivables are higher at Sept. 30, 1995 than at
December 31, 1994 and at June 30, 1994 because of increased sales. Inventories
decreased $383,000 during the quarter, and $685,000 for the nine months ended
Sept. 30, 1995, however demonstration equipment increased $31,000 for the
quarter and $480,000 for the year to date. 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 $19,000. Depreciation
for the quarter was $107,000.
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
<PAGE>
must replace or extend these bonds. Currently the Company is finalizing the
extension of the bonds. This involves negotiations and meetings with the City of
San Marcos, a financial institution, bond rating agencies and legal counsels.
This 10 year extension of the bonds is expected to be completed early in the
fourth quarter. In addition the Company will be granted a working capital line
of credit. The Company believes, therefore, that it will have sufficient cash
and facilities to meet its upcoming requirements.
Material Changes in Results of Operations
Net sales for the three months ended September 30, 1995 were $7,477,000 compared
to $4,848,000 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. There was a net income of $638,000 for the quarter
compared to net income of $245,000 for the comparable period in 1994. Gross
margins decreased for the quarter compared to the same period one year ago.
This reduction in gross margin is due primarily to the completion of one large
sale at cost in Europe of two PlaceMasters(TM) and other related equipment.
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 increased but 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
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED BALANCE SHEET AS OF SEPTEMBER 30, 1995 AND THE RELATED CONDENSED
STATEMENTS OF OPERATIONS AND OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER
30, 1995 INCLUDED ELSEWHERE IN THIS FORM 10-QSB AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 2,554
<SECURITIES> 0
<RECEIVABLES> 5,021
<ALLOWANCES> 0
<INVENTORY> 4,887
<CURRENT-ASSETS> 13,723
<PP&E> 10,385
<DEPRECIATION> 5,830
<TOTAL-ASSETS> 18,548
<CURRENT-LIABILITIES> 6,625
<BONDS> 0
<COMMON> 32
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 18,548
<SALES> 19,518
<TOTAL-REVENUES> 19,518
<CGS> 13,393
<TOTAL-COSTS> 13,393
<OTHER-EXPENSES> 4,569
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 143
<INCOME-PRETAX> 1,502
<INCOME-TAX> 65
<INCOME-CONTINUING> 1,437
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,437
<EPS-PRIMARY> .45
<EPS-DILUTED> .45
</TABLE>
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