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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q/A
Amendment No. 1
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended MARCH 24, 2000
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OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from To
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Commission file number 33-67908
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MOSLER INC.
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(Exact name of registrant as specified in its charter)
DELAWARE 31-1172814
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(State or other jurisdiction of (I.R.S. Employer Identification No.)
Incorporation or organization)
8509 BERK BOULEVARD
HAMILTON, OHIO 45015-2213
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(Address of principal executive offices) (Zip Code)
(513) 870-1900
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(Registrant's telephone number, including area code)
Not applicable
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(Former name, former address and former fiscal year,
if changed since last report)
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 periods 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
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Applicable Only to Corporate Issuers
Indicate the number of shares outstanding of each of the Issuer's classes of
common stock, as of the latest practical date.
Common Stock, $0.10 Par Value 2,238,956 SHARES AS OF MARCH 24, 2000
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MOSLER INC.
Item 2 Management's Discussion and Analysis of
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Financial Condition and Results of Operations
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This document contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. Such statements include,
without limitations, the Company's beliefs about trends in the Company's
industries, and its views about the long-term future of these industries
and the Company. The following factors, among others, could cause the
Company's financial performance to differ materially from that expressed in
such statements: (i) changes in consumer preferences resulting in a decline
in the demand for product and service, (ii) the inability to reduce SG&A
expenses as expected, (iii) an increase in the price of raw materials, (iv)
political and/or economic instability in foreign countries where the
Company has operations or has suppliers who supply the Company, (v) an
unexpected increase in interest rates, (vi) a shift in strength of the
overall U.S. economy thereby possibly reducing purchases, and, (vii)
failure to remedy in a timely manner any Year 2000 issues that might arise.
Results of Operations
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Three Months Ended March 24, 2000 Compared to the
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Three Months Ended March 27, 1999
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Sales
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The Company's sales increased during the three months ended March 24, 2000
by 3.2% to $78.2 million from $75.8 million. Service Sales increased by
5.3% to $38.0 million from $36.1 million.
Product net sales increased during the three months ended March 24, 2000 by
1.3% to $40.2 million from $39.7 million. Electronic Security product sales
decreased by 12.1% to $18.8 million from $21.4 million. Physical Security
product sales increased by 13.9% to $18.9 million from $16.6 million. This
decrease relates to a reduction in new bank branch openings and capital
budgets being blocked during the last two months of calendar year 1999 due
to Y2K concerns.
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Gross Profit
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Gross profit increased during the three months ended March 24, 2000 by
10.2% percent from $17.5 million to $19.3 million for the same period in
the prior year. Gross profit as a percentage of sales increased to 24.7%
from 23.0% for the three months ended March 24, 2000, resulting principally
from higher sales volumes and improved efficiency in Service.
Selling and Administrative Expenses
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Selling and administrative expense decreased during the three months ended
March 24, 2000 by 4.1% to $14.2 million from $14.8 million for the three
months ended March 27, 1999. The decrease is due primarily to a reduction
in selling costs.
Operating Income
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The Company's operating income for the three months ended March 24, 2000
increased by 96.2% to $5.1 million from $2.6 million for the three months
ended March 27, 1999. Included in 1999 fiscal operating income were
transition costs associated with the acquisition of LeFebure amounting to
approximately $6.0 million. Included in the operating income for 2000 are
$.6 million in transition costs.
Debt Expense
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Debt expense increased for the three months ended March 24, 2000 by 18.8%
to $8.2 million from $6.9 million. The increase was due to higher interest
costs on higher bank debt primarily attributable to increased working
capital requirements of the Company.
Net Loss
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Net loss before preferred stock charges decreased by $1.3 million for the
three months ended March 24, 2000 to $3.1 million from $4.4 million for the
three months ended March 27, 1999.
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acquisition of LeFebure. Included in the operating income for fiscal year 2000
are $3.3 million in transition costs.
Debt Expense
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Debt expense for the nine months ended March 24, 2000 increased by 20.1% to
$22.7 million from $18.9 million for the same period of the prior year. The
increase was due to higher interest costs on higher bank debt primarily
attributable to increased working capital requirements of the Company.
Net Loss
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Net loss before preferred stock charges decreased by $3.9 million for the nine
months ended March 24, 2000 to $10.1 million from $14.0 million.
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Item 4. Submission of Matters to a Vote of Security Holders
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None.
Item 6. Exhibits and Reports on Form 8-K
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(a) List of Exhibits
(27) Financial Data Schedule for the nine months ended
March 24, 2000. (Exhibit 27 previously filed with 10-Q
filed on 5/15.)
(b) Reports on Form 8-K
None
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MOSLER INC.
Signature
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.
Mosler Inc.
(Registrant)
Date: 5/16/00 /s/ Robert A. Crisafulli
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Robert A. Crisafulli
Chief Financial Officer
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