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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, 1997
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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)
(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 May 9,1997
Common Stock $.01 Par value 3,235,250
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Part 1.
Item 1. Financial Statement
Amistar Corporation
and Subsidiaries
Condensed Balance Sheets
(In thousands)
MARCH 31,* DEC. 31,
1997 1996
-------- --------
ASSETS
Current assets:
Cash $ 2,324 $ 1,892
Accounts receivable, net 5,076 5,901
Inventories 5,729 5,127
Demonstration equipment 715 767
Prepaid expenses 433 306
Deferred income taxes 658 658
-------- --------
Total current assets 14,935 14,651
Property & equipment, net 5,174 4,949
Contracts receivable 397 466
Restricted cash 1,329 1,329
Other 149 156
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$ 21,984 $ 21,551
======== ========
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable & accrued liabilities $ 2,339 $ 2,436
Income taxes payable 457 277
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Total current liabilities 2,796 2,713
Industrial development bond 4,500 4,500
Shareholders' equity
Common stock 32 32
Paid in capital 4,840 4,826
Retained earnings 9,816 9,480
-------- --------
Total shareholders' equity 14,688 14,338
$ 21,984 $ 21,551
======== ========
*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 March 31, 1997 1996
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Net sales $ 6,415 $ 4,873
Cost of sales 4,105 3,058
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Gross profit 2,310 1,815
Operating expenses:
Selling costs 1,132 932
General & administrative 266 248
Research & development 388 294
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1,786 1,474
Earnings from operations 524 341
Other income (expense), net 37 (9)
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Earnings before income taxes 561 332
Income tax expense 225 132
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Net earnings $ 336 $ 200
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Net income per share $ 0.10 $ 0.06
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Weighted average number of
shares outstanding 3,235,250 3,228,250
========== ==========
See accompanying notes to financial statements.
3
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Amistar Corporation
and Subsidiaries
Statements of Cash Flows
(Unaudited and In thousands)
Three months ended March 31, 1997 1996
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Cash flows from operating activities:
Net earnings $ 336 $ 200
Adjustments to reconcile net earnings to net
cash provided (used) by operating activities:
Depreciation & Amortization 133 81
Gain on sale of assets (39) -
Changes in assets & liabilities:
Accounts receivable, net 825 151
Inventories (602) 124
Demonstration equipment 52 (100)
Prepaid expenses & other assets (120) (150)
Contracts receivable 69 55
Accounts payable & accrued liabilities (97) (571)
Income taxes payable 180 (67)
-------- --------
401 (477)
Cash provided (used) by operating activities 737 (277)
Cash flows from investing activities:
Capital expenditures (358) (252)
Proceeds from sale of equipment 39 -
Cash flows from financing activities:
Common stock issued for stock options 14 3
Net increase (decrease) in cash 432 (526)
Cash at the beginning of the period 1,892 1,982
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Cash at the end of the period $ 2,324 $ 1,456
Supplemental disclosure of cash flow information
Cash paid during the period for:
Interest $ 42 $ 45
Income tax $ 55 $ 198
See accompanying notes to financial statements.
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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, 1997, and
December 31, 1996, and the results of its operations and cash flows for the
three month period ending March 31, 1997, and 1996.
Note 3
The components of inventory are as follows:
March 31,* Dec. 31,
1997 1996
----------- -----------
Raw Material $ 1,031,000 $ 899,000
Work In Process 2,292,000 2,062,000
Finished Goods 2,406,000 2,166,000
----------- -----------
$ 5,729,000 $ 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 $350,000 during the three
month period ended March 31, 1997, primarily as a result of income from
operations. This compares with the same period in the prior year when
shareholders' equity increased $203,000 primarily as a result of income from
operations. Accounts receivable decreased in relation to sales following a
strong fourth quarter in 1996. Inventories increased as stock levels were
replenished after the fourth quarter depletion in 1996. Expenditures for the
quarter for property and equipment were $358,000, and consisted of surface
mount machines for the contract assembly division and costs related to the
new enterprise wide information system.
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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 March 31, 1997, were $6,415,000
compared to $4,873,000 for the same period in the prior year. Sales of
Amistar machines, private label products, and spare parts increased 26%,
while sales of custom assembly increased 50%. The increase in sales of
manufactured and private label products was primarily due to the continuing
upturn in the computer memory module industry. The majority of machines sold
were private label. Sales of contract assembly increased primarily as result
of the expansion of operations at an additional location in Anaheim,
California.
Gross margins as a percent of sales decreased to 36% compared to 37% for the
same period in the prior year, resulting from a higher mix of contract
assembly sales and partially offset by a more favorable exchange rate of the
U.S. dollar versus the Japanese yen on private label sales.
Research and development expenses increased due to efforts related to
feeders for the new high speed surface mount machine recently completed.
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
7
1
3
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<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEET AS OF MARCH 31, 1997 AND THE RELATED STATEMENT OF OPERATIONS FOR THE
PERIOD ENDED MARCH 31, 1997.
</LEGEND>
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32
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