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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, 1996
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AMISTAR CORPORATION
(Exact name of registrant as specified in its Charter)
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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)
(Address of principle executive offices)
(619) 471-1700
(Registrant's telephone number, including area code)
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 MAY 10, 1996
Common Stock $.01 Par Value 3,228,250
1
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Part I.
Item 1. Financial Statement
AMISTAR CORPORATION
AND SUBSIDIARIES
Condensed Balance Sheets
(In thousands)
MAR 31,* DEC 31,
1996 1995
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ASSETS
Current assets:
Cash $ 1,456 $ 1,982
Accounts receivable, net 4,394 4,545
Inventories 5,008 5,132
Demonstration equipment 1,650 1,550
Prepaid expenses 324 234
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Total current assets 12,832 13,443
Property & equipment, net 4,662 4,491
Contracts receivable 276 331
Restricted cash 1,329 1,329
Other 208 148
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$19,307 $19,742
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LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable & accrued liabilities $ 1,780 $ 2,351
Income taxes payable 211 278
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Total current liabilities 1,991 2,629
Industrial development bond 4,500 4,500
Shareholders' equity
Common stock 32 32
Paid in capital 4,826 4,823
Retained earnings 7,958 7,758
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Total shareholders' equity 12,816 12,613
$19,307 $19,742
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*Unaudited
See accompanying notes to financial statements.
2
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AMISTAR CORPORATION
AND SUBSIDIARIES
Condensed Statements of Earnings
(Unaudited and in thousands, except per share amounts)
Three months ended March 31, 1996 1995
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Net sales $ 4,873 $ 5,498
Cost of sales 3,058 3,707
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Gross profit 1,815 1,791
Operating expenses:
Selling costs 932 988
General & administrative 248 253
Research & development 294 210
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1,474 1,451
Earnings from operations 341 340
Other income (expense) (9) (16)
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Earnings before income taxes 332 324
Income tax expense 132 5
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Net earnings $ 200 $ 319
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Net income per share $ 0.06 $ 0.10
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Weighted average number of
shares outstanding 3,228,250 3,189,750
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See accompanying notes to financial statements.
3
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AMISTAR CORPORATION
AND SUBSIDIARIES
Condensed Statements of Cash Flows
(Unaudited and in thousands)
Three months ended March 31, 1996 1995
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Cash flows from operating activities:
Net earnings $ 200 $ 319
Adjustments to reconcile net earnings to net
cash provided (used) by operating activities:
Depreciation & Amortization 81 96
Changes in assets & liabilities:
Accounts receivable, net 151 (428)
Inventories 124 300
Demonstration equipment (100) (415)
Prepaid expenses & other assets (150) 54
Accounts payable & accrued liabilities (571) 35
Income taxes payabled (67) (91)
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(532) (449)
Cash provided (used) by operating activities (332) (130)
Cash flows from investing activities:
Capital expenditures (252) (16)
Cash flows from financing activities:
Contracts receivable 55 20
Common stock issued for stock options 3 -
Net increase (decrease) in cash (526) (126)
Cash at the beginning of the period 1,982 1,671
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Cash at the end of the period $ 1,456 $ 1,545
Supplemental disclosure of cash flow
information
Cash paid during the period for:
Interest $ 45 $ 48
Income tax $ 198 $ 9
See accompanying notes to financial statements.
4
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AMISTAR CORPORATION
AND SUBSIDIARIES
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 March 31, 1996 and December 31, 1995, and
the results of its operations and cash flows for the three month period ending
March 31, 1996 and 1995.
Note 3
The Components of Inventory are as follows:
MAR 31,* DEC. 31,
1996 1995
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Raw Material $ 384,000 $ 394,000
Work In Process 2,124,000 2,176,000
Finished Goods 2,500,000 2,562,000
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$5,008,000 $5,132,000
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Item II. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
Material Change in Financial Condition
Shareholders' equity in the Company increased $203,000 during the three month
period ended March 31, 1996 primarily as a result of income from operations.
This compares with the same period in the prior year when shareholders' equity
increased $319,000 as a result of income from operations. Expenditures for the
quarter for property and equipment were $252,000 and primarily related to an
expansion of our custom assembly division into a 15,000 square foot facility
located in Anaheim, California. Accounts payable and accrued liabilities
decreased $571,000 primarily due to the payment of management bonuses, sales
commissions payments and lower raw material purchases.
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Material Changes in Results of Operations
Net sales for the three months ended March 31, 1996 were $4,873,000 compared to
$5,498,000 for the same period in the prior year. Sales of Amistar machines,
private label products, and spare parts decreased 22%, while sales of custom
assembly increased 64%. The decrease in sales of manufactured and private label
products was primarily due to the slowdown in the computer memory module
industry and due to increased competition.
Gross margins improved to 37% compared to 33% for the same period in the prior
year, resulting from a more favorable exchange rate of the U.S. dollar versus
the Japanese yen on private label products and due to improved profitability in
our Custom Assembly Technologies division.
Research and development expenses increased due to efforts related to a new
surface mount machine, and feeders for its existing surface mount machine.
Income taxes increased substantially over the prior year since the Company had
utilized its' remaining tax carryovers in the prior year.
Net income decreased primarily due to the effects of income taxes.
PART II.
Items 1-6 Non-Applicable
6
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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
7
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<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
THE BALANCE SHEET AS OF MARCH 31, 1996 AND THE RELATED STATEMENT OF
OPERATIONS FOR THE PERIOD ENDED MARCH 31, 1996.
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