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, 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 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 August 8, 1997
Common Stock $.01 Par Value 3,236,500
<PAGE>
Part 1.
Item 1. Financial Statement
Amistar Corporation
and Subsidiaries
Condensed Balance Sheets
(In thousands)
JUNE 30,* DEC. 31,
1997 1996
---------- ----------
ASSETS
Current assets:
Cash $ 3,688 $ 1,892
Accounts receivable, net 3,334 5,901
Inventories 5,839 5,127
Demonstration equipment 502 767
Prepaid expenses 274 306
Deferred income taxes 658 658
---------- ----------
Total current assets 14,295 14,651
Property & equipment, net 5,166 4,949
Contracts receivable 362 466
Restricted cash 1,329 1,329
Other 142 156
---------- ----------
$ 21,294 $ 21,551
========== ==========
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable & accrued liabilities $ 1,706 $ 2,436
Income taxes payable 119 277
---------- ----------
Total current liabilities 1,825 2,713
Industrial development bond 4,500 4,500
Shareholders' equity
Common stock 32 32
Paid in capital 4,843 4,826
Retained earnings 10,094 9,480
---------- ----------
Total shareholders' equity 14,969 14,338
$ 21,294 $ 21,551
========== ==========
*Unaudited
See accompanying notes to financial statements.
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<PAGE>
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,
1997 1996 1997 1996
----------- ----------- ----------- -----------
Net sales $ 5,053 $ 5,418 $ 11,468 $ 10,291
Cost of sales 3,160 3,430 7,265 6,488
Gross profit 1,893 1,988 4,203 3,803
Operating expenses:
Selling costs 1,068 1,011 2,201 1,941
General & administrative 257 246 522 496
Research & development 281 354 669 648
----------- ----------- ----------- -----------
1,606 1,611 3,392 3,085
Earnings from operations 287 377 811 718
Other income (expense), net 98 (18) 136 (26)
----------- ----------- ----------- -----------
Earnings before income taxes 385 359 947 692
Income tax expense 108 144 333 276
----------- ----------- ----------- -----------
Net earnings $ 277 $ 215 $ 614 $ 416
=========== =========== =========== ===========
Net income per share $ 0.09 $ 0.07 $ 0.19 $ 0.13
=========== =========== =========== ===========
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-
<PAGE>
Amistar Corporation
and Subsidiaries
Statements of Cash Flows
(Unaudited and In thousands)
Six months ended June 30, 1997 1996
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Cash flows from operating activities:
Net earnings $ 614 $ 416
Adjustments to reconcile net earnings to net
cash provided (used) by operating activities:
Depreciation & Amortization 267 184
Gain on sale of assets (39) (69)
Changes in assets & liabilities:
Accounts receivable, net 2,567 (415)
Inventories (712) (31)
Demonstration equipment 265 334
Prepaid expenses & other assets 46 (45)
Accounts payable & accrued liabilities (730) (514)
Income taxes payable (158) (113)
---------- ----------
1,506 (669)
Cash provided (used) by operating activities 2,120 (253)
Cash flows from investing activities:
Capital expenditures (484) (541)
Proceeds from sale of equipment 39 69
Cash flows from financing activities:
Contracts receivable 104 (107)
Common stock issued for stock options 17 2
Net increase (decrease) in cash 1,796 (830)
Cash at the beginning of the period 1,892 1,982
---------- ----------
Cash at the end of the period $ 3,688 $ 1,152
Supplemental disclosure of cash flow information
Cash paid during the period for:
Interest $ 85 $ 89
Income tax $ 314 $ 384
See accompanying notes to financial statements.
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<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, 1997, and
December 31, 1996, and the results of its operations and cash flows for the
six month period ending June 30, 1997, and 1996.
Note 3
The components of inventory are as follows:
June 30,* Dec. 31,
1997 1996
------------ ------------
Raw Material $ 1,023,000 $ 899,000
Work In Process 2,349,000 2,062,000
Finished Goods 2,467,000 2,166,000
------------ ------------
$ 5,839,000 $ 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 $614,000 during the six months
ended June 30, 1997, primarily as a result of income from operations. This
compares with the same period in the prior year when shareholders' equity
increased $416,000 primarily as a result of income from operations. Cash
grew significantly as accounts receivable decreased during the six months
ended June 30, 1997, resulting from collections related to the strong fourth
quarter in 1996. Inventories increased as stock levels were replenished
after the fourth quarter depletion in 1996. Expenditures for the six months
ended June 30, 1997, for property and equipment were $491,000, and consisted
of surface mount machines for the contract assembly division and costs
related to the new enterprise-wide information system.
-5-
<PAGE>
Amistar Corporation
and Subsidiaries
Notes to Condensed Financial Statements, Continued
Material Changes in Results of Operations
Net sales for the three months ended June 30, 1997, were $5,053,000 compared
to $5,418,000 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.
Research and development expenses decreased for the current quarter due to
the completion of new feeders for the high speed surface mount machine.
Other income increased in the three months ended June 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
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<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEET AS OF JUNE 30, 1997 AND THE RELATED STATEMENT OF OPERATIONS FOR THE PERIOD
ENDED JUNE 30, 1997.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 3,688
<SECURITIES> 0
<RECEIVABLES> 3,334
<ALLOWANCES> 0
<INVENTORY> 5,839
<CURRENT-ASSETS> 14,295
<PP&E> 5,166
<DEPRECIATION> 0
<TOTAL-ASSETS> 21,294
<CURRENT-LIABILITIES> 1,825
<BONDS> 4,500
32
0
<COMMON> 0
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<TOTAL-LIABILITY-AND-EQUITY> 21,294
<SALES> 11,468
<TOTAL-REVENUES> 11,468
<CGS> 7,265
<TOTAL-COSTS> 7,265
<OTHER-EXPENSES> 3,392
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<INCOME-PRETAX> 947
<INCOME-TAX> 333
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<NET-INCOME> 614
<EPS-PRIMARY> .19
<EPS-DILUTED> .19
</TABLE>
