11
<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, 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 Nov. 8, 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)
SEPT 30,* DEC. 31,
1996 1995
---------- ----------
ASSETS
Current assets:
Cash $ 1,961 $ 1,982
Accounts receivable, net 5,058 4,545
Inventories 4,935 5,132
Demonstration equipment 1,012 1,550
Prepaid expenses 343 234
---------- -----------
Total current assets 13,309 13,443
Property & equipment, net 4,801 4,491
Contracts receivable 361 331
Restricted cash 1,329 1,329
Other 135 148
---------- -----------
$ 19,935 $ 19,742
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable & accrued liabilities $ 1,898 $ 2,351
Income taxes payable 249 278
---------- ---------
Total current liabilities 2,147 2,629
Industrial development bond 4,500 4,500
Shareholders' equity
Common stock 32 32
Paid in capital 4,825 4,823
Retained earnings 8,431 7,758
---------- ---------
Total shareholders' equity 13,288 12,613
$ 19,935 $ 19,742
========= =========
*Unaudited
See accompanying notes to financial statements.
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<TABLE>
Amistar Corporation
and Subsidiaries
Condensed Statements of Earnings
(Unaudited and In thousands, except per share amounts)
<CAPTION>
Three Months Ended Nine Months Ended
Sept 30, Sept 30,
1996 1995 1996 1995
------------------------ -------------------------
<S> <C> <C> <C> <C>
Net sales $ 5,806 $ 7,477 $ 16,097 $ 19,518
Cost of sales 3,745 5,273 10,232 13,393
---------- --------- ---------- ----------
Gross profit 2,061 2,204 5,865 6,125
Operating expenses:
Selling costs 1,050 1,020 2,992 3,121
General & administrative 254 221 749 667
Research & development 313 256 962 781
---------- --------- ---------- ----------
1,617 1,497 4,703 4,569
Earnings from operations 444 707 1,162 1,556
Other income (expense), net (15) (19) (41) (54)
---------- --------- ---------- ----------
Earnings before income taxes 429 688 1,121 1,502
Income tax expense 172 50 448 65
---------- --------- ---------- ----------
Net earnings $ 257 $ 638 $ 673 $ 1,437
========== ========= ========== ==========
Net income per share $ 0.08 $ 0.20 $ 0.21 $ 0.45
========== ========= ========== ==========
Weighted average number of
shares outstanding 3,228,250 3,190,750 3,228,250 3,190,750
See accompanying notes to financial statements.
<PAGE>
Amistar Corporation
and Subsidiaries
Statements of Cash Flow
(Unaudited and In thousands)
Nine months ended Sept 30,
1996 1995
--------- ---------
Cash flows from operating activities:
Net earnings $ 673 $ 1,437
Adjustments to reconcile net earnings to net
cash provided (used) by operating activities:
Depreciation & Amortization 311 302
Gain on sale of assets (69) (10)
Changes in assets & liabilities:
Accounts receivable, net (513) (784)
Inventories 197 685
Demonstration equipment 538 (480)
Prepaid expenses & other assets (96) 82
Accounts payable & accrued liabilities (453) (317)
Income taxes payable (29) (3)
-------- ------
(114) (525)
Cash provided (used) by operating activities 559 912
Cash flows from investing activities:
Capital expenditures (621) (35)
Proceeds from sale of equipment 69 10
Cash flows from financing activities:
Contracts receivable (30) (4)
Common stock issued for stock options 2 -
Net increase (decrease) in cash (21) 883
Cash at the beginning of the period 1,982 1,671
--------- ---------
Cash at the end of the period $ 1,961 $ 2,554
Supplemental disclosure of cash flow information
Cash paid during the period for:
Interest $ 157 $ 143
Income tax $ 443 $ 15
See accompanying notes to financial statements.
<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 September 30, 1996
and December 31, 1995, and the results of its operations and cash flows for
the nine month period ending September 30, 1996 and 1995.
Note 3
The components of inventory are as follows:
Sept. 30,* Dec. 31,
1996 1995
-------------- -------------
Raw Material $ 380,000 $ 394,000
Work In Process 2,092,000 2,176,000
Finished Goods 2,463,000 2,562,000
-------------- --------------
$ 4,935,000 $ 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 $257,000 during the three
month period ended September 30, 1996 as a result of income from
operations. This compares with the same period in the prior year when
shareholders' equity increased $638,000 as a result of income from
operations. Accounts receivables have increased in relation to sales due to
extended terms offered on sales. Expenditures for the quarter for property
and equipment were $80,000. Accumulated depreciation for the quarter was
$122,000.
<PAGE>
Amistar Corporation
and Subsidiaries
Notes to Condensed Financial Statements, Continued
Material Changes in Results of Operations
Net sales for the three months ended September 30, 1996 were $5,806,000
compared to $7,477,000 for the same period in the prior year. Sales of
Amistar machines, private label products, and spare parts decreased 28%,
while sales of custom assembly increased 21%. 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 35% compared to 29% 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. In addition, the prior year quarter included the sale of two
early production model surface mount machines at cost in order to penetrate
the European market.
Research and development expenses continued to increase due to efforts
related to the new high speed surface mount machine, and feeders for its
existing surface mount machines.
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
<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>
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<PERIOD-TYPE> 9-MOS
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<PERIOD-END> SEP-30-1996
<CASH> 1961
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<RECEIVABLES> 5058
<ALLOWANCES> 0
<INVENTORY> 5947
<CURRENT-ASSETS> 13309
<PP&E> 4801
<DEPRECIATION> 0
<TOTAL-ASSETS> 19935
<CURRENT-LIABILITIES> 2147
<BONDS> 4500
0
0
<COMMON> 32
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<TOTAL-LIABILITY-AND-EQUITY> 19935
<SALES> 16097
<TOTAL-REVENUES> 16097
<CGS> 10232
<TOTAL-COSTS> 10232
<OTHER-EXPENSES> 4703
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1121
<INCOME-TAX> 448
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<EXTRAORDINARY> 0
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<NET-INCOME> 673
<EPS-PRIMARY> .21
<EPS-DILUTED> .21
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