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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
September 30, 1997
- ----------------------------------------------------------------------------
AMISTAR CORPORATION
(Exact name of registrant as specified in its Charter)
- ----------------------------------------------------------------------------
State of California 95-2747332
(State or other jurisdiction of Incorporation (I.R.S. Employer
or organization) Identification No.)
237 Via Vera Cruz 92069
San Marcos, California (Zip Code)
(Address of principle executive offices)
(760) 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 November 12, 1997
Common Stock $.01 Par Value 3,236,500
1
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Part 1.
Item 1. Financial Statement
Amistar Corporation
and Subsidiaries
Condensed Balance Sheets
(In thousands)
SEPT 30,* DEC. 31,
1997 1996
--------- ---------
ASSETS
Current assets:
Cash $ 3,414 $ 1,892
Accounts receivable, net 3,509 5,901
Inventories 5,357 5,127
Demonstration equipment 429 767
Prepaid expenses 261 306
Deferred income taxes 658 658
Total current assets 13,628 14,651
--------- ---------
Property & equipment, net 5,217 4,949
Contracts receivable 652 466
Restricted cash 1,329 1,329
Other 139 156
--------- ---------
$ 20,965 $ 21,551
========= =========
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable & accrued liabilities $ 1,625 $ 2,436
Income taxes payable - 277
--------- ---------
Total current liabilities 1,625 2,713
Industrial development bond 4,500 4,500
Shareholders' equity
Common stock 32 32
Paid in capital 4,843 4,826
Retained earnings 9,965 9,480
--------- ---------
Total shareholders' equity 14,840 14,338
$ 20,965 $ 21,551
========= =========
*Unaudited
See accompanying notes to financial statements.
2
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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,
1997 1996 1997 1996
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net sales $ 4,454 $ 5,806 $ 15,922 $ 16,097
Cost of sales 3,116 3,745 10,382 10,232
---------- ---------- ---------- ----------
Gross profit 1,338 2,061 5,540 5,865
Operating expenses:
Selling costs 948 1,050 3,149 2,991
General & administrative 248 254 770 749
Research & development 354 313 1,023 962
---------- ---------- ---------- ----------
1,550 1,617 4,942 4,702
Earnings (loss) from operations (212) 444 598 1,163
Other income (expense), net (3) (15) 134 (42)
---------- ---------- ---------- ----------
Earnings (loss) before
income taxes (215) 429 732 1,121
Income tax expense (benefit) (86) 172 247 448
---------- ---------- ---------- ----------
Net earnings (loss) $ (129) $ 257 $ 485 $ 673
========== ========== ========== ==========
Net income (loss) per share $ (0.04) $ 0.08 $ 0.15 $ 0.21
========== ========== ========== ==========
Weighted average number of
shares outstanding 3,236,500 3,228,250 3,236,500 3,228,250
See accompanying notes to financial statements.
3
</TABLE>
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Amistar Corporation
and Subsidiaries
Statements of Cash Flows
(Unaudited and In thousands)
Nine months ended September 30, 1997 1996
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Cash flows from operating activities:
Net earnings $ 485 $ 673
Adjustments to reconcile net earnings to net
cash provided (used) by operating activities:
Depreciation & Amortization 424 311
Gain on sale of assets (39) (69)
Changes in assets & liabilities:
Accounts receivable, net 2,392 (513)
Inventories (230) 197
Demonstration equipment 338 538
Prepaid expenses & other assets 62 (96)
Accounts payable & accrued liabilities (811) (453)
Income taxes payable (277) (29)
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1,860 (114)
Cash provided by operating activities 2,344 559
Cash flows from investing activities:
Capital expenditures (692) (621)
Proceeds from sale of equipment 39 69
Cash flows from financing activities:
Contracts receivable (186) (30)
Common stock issued for stock options 17 2
Net increase (decrease) in cash 1,522 (21)
Cash at the beginning of the period 1,892 1,982
--------- ---------
Cash at the end of the period $ 3,414 $ 1,961
Supplemental disclosure of cash flow information
Cash paid during the period for:
Interest $ 131 $ 157
Income tax $ 524 $ 443
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 September 30, 1997,
and December 31, 1996, and the results of its operations and cash flows for
the nine month period ending September 30, 1997, and 1996.
Note 3
The components of inventory are as follows:
Sept. 30,* Dec. 31,
1997 1996
--------------- ---------------
Raw Material $ 939,000 $ 899,000
Work In Process 2,154,000 2,062,000
Finished Goods 2,264,000 2,166,000
--------------- ---------------
$ 5,357,000 $ 5,127,000
=============== ===============
*Unaudited
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 $502,000 during the nine
months ended September 30, 1997, primarily as a result of income from
operations. This compares with the same period in the prior year when
shareholders' equity increased $673,000 primarily as a result of income from
operations. Cash grew significantly as accounts receivable decreased during
the nine months ended September 30, 1997, resulting from a lower level of
monthly sales than experienced in December 1996. Inventories increased as
stock levels were replenished after the fourth quarter depletion in 1996.
Expenditures for the nine months ended September 30, 1997, for property and
equipment were $692,000, and consisted of surface mount machines for the
contract assembly division and costs related to the new enterprise-wide
information system.
5
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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, 1997, were $4,454,000
compared to $5,806,000 for the same period in the prior year. The decrease
in sales was primarily due to fewer shipments of manufactured machines
resulting from continuing engineering required on the new surface mount
machine. In addition, the private label machine sales were impacted by
delays in delivery of the newest machine models from its offshore supplier.
Gross margin for the current quarter decreased as a percentage of sales due
to a higher mix of contract assembly sales, which currently produce a lower
margin than machine division sales.
Other income increased in the nine months ended September 30, 1997, due to
the recognition of deferred interest income on a contract receivable that
was paid off
PART II.
Items 1-6 Non-Applicable
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
6
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEET AS OF SEPTEMBER 30, 1997 AND THE RELATED STATEMENT OF OPERATIONS FOR THE
PERIOD ENDED SEPTEMBER 30, 1997.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 3,414
<SECURITIES> 0
<RECEIVABLES> 3,509
<ALLOWANCES> 0
<INVENTORY> 5,357
<CURRENT-ASSETS> 13,628
<PP&E> 5,217
<DEPRECIATION> 0
<TOTAL-ASSETS> 20,965
<CURRENT-LIABILITIES> 1,625
<BONDS> 4,500
32
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 20,965
<SALES> 15,922
<TOTAL-REVENUES> 15,922
<CGS> 10,382
<TOTAL-COSTS> 10,382
<OTHER-EXPENSES> 4,942
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 128
<INCOME-PRETAX> 732
<INCOME-TAX> 247
<INCOME-CONTINUING> 485
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<NET-INCOME> 485
<EPS-PRIMARY> .15
<EPS-DILUTED> .15
</TABLE>
