<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, 1996
_________________________________________________________________
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)
(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
--- ---
Class Outstanding at Aug 9, 1996
Common Stock $.01 Par Value 3,228,250
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Part 1.
Item 1. Financial Statement
Amistar Corporation
and Subsidiaries
Condensed Balance Sheets
(In thousands)
JUNE 30,* DEC. 31,
1996 1995
--------- --------
ASSETS
Current assets:
Cash $ 1,152 $ 1,982
Accounts receivable, net 4,960 4,545
Inventories 5,163 5,132
Demonstration equipment 1,216 1,550
Prepaid expenses 275 234
------- -------
Total current assets 12,766 13,443
Property & equipment, net 4,848 4,491
Contracts receivable 438 331
Restricted cash 1,329 1,329
Other 152 148
------- -------
$19,533 $19,742
======= =======
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable & accrued
liabilities $ 1,837 $ 2,351
Income taxes payable 165 278
------- -------
Total current liabilities 2,002 2,629
Industrial development bond 4,500 4,500
Shareholders' equity
Common stock 32 32
Paid in capital 4,825 4,823
Retained earnings 8,174 7,758
------- -------
Total shareholders' equity 13,031 12,613
$19,533 $19,742
======= =======
*Unaudited
See accompanying notes to financial statements.
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Amistar Corporation
and Subsidiaries
Condensed Statements of Earnings
(Unaudited and In thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
---------- ---------- ---------- ----------
Net sales $ 5,418 $ 6,542 $ 10,291 $ 12,041
Cost of sales 3,430 4,412 6,488 8,120
---------- ---------- ---------- ----------
Gross profit 1,988 2,130 3,803 3,921
Operating expenses:
Selling costs 1,011 1,113 1,941 2,101
General & administrative 246 236 496 446
Research & development 354 271 648 525
---------- ---------- ---------- ----------
1,611 1,620 3,085 3,072
Earnings from operations 377 510 718 849
Other income (expense) (18) (20) (26) (35)
---------- ---------- ---------- ----------
Earnings before income taxes 359 490 692 814
Income tax expense 144 10 276 15
---------- ---------- ---------- ----------
Net earnings $ 215 $ 480 $ 416 $ 799
========== ========== ========== ==========
Net income per share $ 0.07 $ 0.15 $ 0.13 $ 0.25
========== ========== ========== ==========
Weighted average number
of shares outstanding 3,228,250 3,189,750 3,228,250 3,189,750
========== ========== ========== ==========
See accompanying notes to financial statements.
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Amistar Corporation
and Subsidiaries
Statements of Cash Flows
(Unaudited and In thousands)
Six months ended June 30,
1996 1995
------ -------
Cash flows from operating activities:
Net earnings $ 416 $ 799
Adjustments to reconcile net earnings
to net cash provided (used) by
operating activities:
Depreciation & Amortization 184 195
Gain on sale of assets (69) (10)
Changes in assets & liabilities:
Accounts receivable, net (415) (1,076)
Inventories (31) 302
Demonstration equipment 334 (449)
Prepaid expenses & other assets (45) (34)
Accounts payable & accrued liab. (514) (80)
Income taxes payable (113) (47)
------ -------
(669) (1,199)
Cash provided (used) by operating
activities (253) (400)
Cash flows from investing activities:
Capital expenditures (541) (30)
Proceeds from sale of equipment 69 10
Cash flows from financing activities:
Contracts receivable (107) (65)
Common stock issued for stock options 2 --
Net increase (decrease) in cash (830) (485)
Cash at the beginning of the period 1,982 1,671
------ -------
Cash at the end of the period $1,152 $ 1,186
Supplemental disclosure of cash flow
information
Cash paid during the period for:
Interest $ 89 $ 97
Income tax $ 384 $ 14
<PAGE>
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 June 30, 1996 and
December 31, 1995, and the results of its operations and cash flows for the
six month period ending June 30, 1996 and 1995.
Note 3
The Components of Inventory are as follows:
June 30,* DEC. 31,
1996 1995
---------- ----------
Raw Material $ 396,000 $ 394,000
Work In Process 2,189,000 2,176,000
Finished Goods 2,578,000 2,562,000
---------- ----------
$5,163,000 $5,132,000
========== ==========
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 $215,000 during the three month
period ended June 30, 1996 as a result of income from operations. This
compares with the same period in the prior year when shareholders' equity
increased $480,000 as a result of income from operations. Expenditures for
the quarter for property and equipment were $289,000 and related to an
expansion of our custom assembly facility located in Anaheim, California and
for quality control test equipment at our San Marcos facility.
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Material Changes in Results of Operations
Net sales for the three months ended June 30, 1996 were $5,418,000 compared
to $6,542,000 for the same period in the prior year. Sales of Amistar
machines, private label products, and spare parts decreased 25%, while sales
of custom assembly increased 50%. The decrease in sales of manufactured and
private label products was primarily due to the continuing 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 which was
partially offset by start-up operating costs at our Anaheim, California
facility.
Research and development expenses increased due to efforts related to the new
high speed 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.
PART II.
Items 1-6 Non-Applicable
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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
-------------------------------------
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 BALANCE
SHEET AS OF JUNE 30, 1996 AND THE RELATED STATEMENT OF OPERATIONS FOR THE PERIOD
ENDED JUNE 30, 1996.
</LEGEND>
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