<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ------- to ------
COMMISSION FILE NO. 0-15098
JONES MEDICAL INDUSTRIES, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE 43-1229854
(STATE OR OTHER JURISDICTION (I.R.S. EMPLOYER IDENTIFICATION NO.)
OF INCORPORATION OR ORGANIZATION)
1945 Craig Road, St. Louis, Missouri 63146
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
Registrant's telephone number, including area code: (314) 576-6100
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 REGISTRAT WAS REQUIRED TO FILE
SUCH REPORTS), AND (2) HAS BEEN SUBJECT TO SUCH FILING REQUIREMENTS
FOR THE PAST 90 DAYS. YES X NO .
----- -----
NUMBER OF SHARES OUTSTANDING OF REGISTRANT'S COMMON STOCK AS OF
AUGUST 2, 1995: 9,345,984
PAGE 1 OF 16
<PAGE> 2
JONES MEDICAL INDUSTRIES, INC.
<TABLE>
INDEX
-----
<CAPTION>
PAGE
NUMBER
------
<S> <C>
Part I - Financial Information
Item 1. Financial Statements
Condensed Consolidated Balance
Sheets - December 31, 1994 and
June 30, 1995 3
Condensed Consolidated Statements of
Income - three months and six months
ended June 30, 1994 and 1995 4
Condensed Consolidated Statements of
Stockholders' Equity - six months
ended June 30, 1994 and 1995 5
Condensed Consolidated Statements of
Cash Flows - six months ended June
30, 1994 and 1995 6- 7
Notes to Condensed Consolidated
Financial Statements 8-10
Item 2. Management's Discussion and
Analysis of Results of Operations and
Financial Condition 11-14
Part II - Other Information
Legal Proceedings 15
Signatures 16
</TABLE>
- 2 -
<PAGE> 3
<TABLE>
JONES MEDICAL INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
<CAPTION>
December 31, June 30,
1994 1995
------------ -----------
ASSETS (Unaudited)
<S> <C> <C>
Current Assets:
Cash and temporary investments.................................... $ 7,031,765 $ 3,675,226
Marketable securities............................................. 120,000 120,000
Accounts receivable, less allowance for doubtful accounts of
$64,794 at December 31, 1994 and $82,794 at June 30, 1995......... 4,242,356 5,212,994
Inventories....................................................... 8,320,590 11,202,719
Deferred income taxes............................................. 652,805 652,805
Prepaid expenses and other........................................ 425,843 808,100
------------ ------------
Total current assets......................................... 20,793,359 21,671,844
Net property, plant and equipment...................................... 12,603,165 12,389,960
Intangible assets, net................................................. 20,674,206 19,664,397
Other assets........................................................... 856,554 1,131,836
------------ ------------
$ 54,927,284 $ 54,858,037
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses............................ $ 3,639,966 $ 3,678,135
Current portion of long-term debt................................ 1,611,246 1,249,982
Income taxes payable............................................. 292,774 822,231
Dividends payable................................................ 234,758 233,722
------------ ------------
Total current liabilities................................... 5,778,744 5,984,070
Long-term debt........................................................ 3,799,978 -
Deferred income taxes................................................. 3,858,198 3,966,105
Contingencies and commitments (Note 8)................................ - -
Stockholders' equity:
Preferred stock, $.01 par value; 1,000,000 shares authorized,
99,919 issued and outstanding at December 31, 1994 and 1,919
at June 30, 1995................................................. 999 19
Common stock, $.04 par value; 30,000,000 authorized, 9,231,012
issued and outstanding at December 31, 1994 and 9,345,884 at June
30, 1995......................................................... 369,240 373,835
Contributed capital (including effects of unearned compensation and
related amortization)............................................ 19,639,433 19,347,227
Retained earnings................................................ 21,480,692 25,186,781
------------ ------------
Total stockholders' equity.................................. 41,490,364 44,907,862
------------ ------------
$ 54,927,284 $ 54,858,037
============ ============
See accompanying notes.
</TABLE>
- 3 -
<PAGE> 4
<TABLE>
JONES MEDICAL INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------- --------------------------
1994 1995 1994 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Sales $11,584,608 $13,282,184 $23,726,512 $24,740,731
Cost of Sales 5,884,511 6,575,254 12,081,792 11,842,748
----------- ----------- ----------- -----------
Gross profit on sales 5,700,097 6,706,930 11,644,720 12,897,983
Selling, general and
administrative
expenses
Selling 2,101,630 2,058,569 4,142,255 3,959,859
General and
administrative 1,244,085 941,692 2,145,987 1,769,443
Research and
development 22,196 - 42,829 -
Amortization 343,205 314,374 692,266 628,294
----------- ----------- ----------- -----------
Total selling,
general and
administrative
expenses 3,711,116 3,314,635 7,023,337 6,357,596
----------- ----------- ----------- -----------
Operating income 1,988,981 3,392,295 4,621,383 6,540,387
Other income
(expense)
Interest income 17,245 31,713 32,179 82,086
Interest
expense (124,261) (33,845) (240,363) (83,910)
Other income
(loss) 27,372 (114,279) 46,522 (114,591)
----------- ----------- ----------- -----------
Income before income
taxes 1,909,337 3,275,884 4,459,721 6,423,972
Income taxes 702,443 1,148,170 1,648,481 2,250,000
----------- ----------- ----------- -----------
Net Income $ 1,206,894 $ 2,127,714 $ 2,811,240 $ 4,173,972
Average shares
outstanding 9,584,000 9,584,000 9,593,000 9,582,000
Earnings per share $ 0.13 $ 0.22 $ 0.29 $ 0.44
See accompanying notes.
</TABLE>
- 4 -
<PAGE> 5
<TABLE>
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(UNAUDITED)
Six Months Ended June 30, 1994 and 1995
<CAPTION>
Number of shares Preferred Common Contributed Retained
Preferred Common Stock Stock Capital Earnings Total
-------------------- --------- -------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at December 31, 1993 222,706 8,952,039 $ 2,227 $358,081 $19,197,969 $16,677,833 $36,236,110
Exercise of stock options - 56,100 - 2,244 389,431 - 391,675
Restricted stock:
Amortization of unearned
compensation - - - - 14,988 - 14,988
Conversion of preferred stock (42,294) 74,014 (423) 2,961 (2,538) - -
Net income - - - - - 2,811,240 2,811,240
Cash dividend declared -
common stock ($.05 per share) - - - - - (452,327) (452,327)
Cash dividend declared -
preferred stock ($.08 per
share) - - - - - (14,713) (14,713)
------- --------- -------- -------- ----------- ----------- -----------
Balance at June 30, 1994 180,412 9,082,153 $ 1,804 $363,286 $19,599,850 $19,022,033 $38,986,973
======= ========= ======== ======== =========== =========== ===========
Balance at December 31, 1994 99,919 9,231,012 $ 999 $369,240 $19,639,433 $21,480,692 $41,490,364
Exercise of stock options - 20,400 - 816 67,984 - 68,800
Restricted stock:
Amortization of unearned
compensation - - - - 15,000 - 15,000
Conversion of preferred stock (53,996) 94,472 (540) 3,779 (3,239) - -
Return of escrowed preferred
stock (44,004) - (440) - (381,277) - (381,717)
Escrowed preferred dividend - - - - 9,326 - 9,326
Net income - - - - - 4,173,972 4,173,972
Cash dividend declared - common
stock ($.05 per share) - - - - - (463,811) (463,811)
Cash dividend declared -
preferred stock ($.08 per
share) - - - - - (4,072) (4,072)
------- --------- -------- -------- ----------- ----------- -----------
Balance at June 30, 1995 1,919 9,345,884 $ 19 $373,835 $19,347,227 $25,186,781 $44,907,862
======= ========= ======== ======== =========== =========== ===========
See accompanying notes.
</TABLE>
- 5 -
<PAGE> 6
<TABLE>
JONES MEDICAL INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Six Months Ended June 30, 1994 and 1995
<CAPTION>
1994 1995
---- ----
<S> <C> <C>
Cash flows used from operating activities:
Net income............................................ $ 2,811,240 $ 4,173,972
Non-Cash adjustments:
Depreciation and amortization................... 1,037,754 1,058,288
Provision for uncollectibles.................... 18,000 18,000
Loss on asset sales............................. - 114,581
Change in assets and liabilities:
Accounts receivable............................. 598,683 (988,638)
Inventories..................................... (357,732) (2,882,129)
Prepaid expenses and other assets............... 432,136 (657,539)
Accounts payable and accrued expenses........... (212,753) 38,169
Income taxes payable............................ 268,261 529,457
----------- -----------
Net cash from operating activities.............. 4,595,589 1,404,161
----------- -----------
Cash flows used for investing activities:
Purchase of marketable securities..................... (47,213) -
Maturities of certificates of deposit................. 1,247,489 -
Additions to property, plant and equipment............ (2,223,312) (778,032)
Proceeds from sales of assets......................... - 579,330
----------- -----------
Net cash used for investing activities.......... (1,023,036) (198,702)
----------- -----------
Cash flows from (used for) financing activities:
Repayment of long-term debt........................... (813,283) (4,161,242)
Payment of dividends.................................. (467,040) (469,556)
Proceeds from exercise of stock options............... 391,675 68,800
----------- -----------
Net cash from (used for) financing activities... (888,648) (4,561,998)
----------- -----------
Increase (decrease) in cash and temporary investments....... 2,683,905 (3,356,539)
Cash and temporary investments, beginning of period......... 948,713 7,031,765
----------- -----------
Cash and temporary investments, end of period............... $ 3,632,618 $ 3,675,226
=========== ===========
See accompanying notes
- 6 -
<PAGE> 7
JONES MEDICAL INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CON'T)
(UNAUDITED)
Six Months Ended June 30, 1994 and 1995
<CAPTION>
Supplemental Disclosures of Cash Flow Information:
- --------------------------------------------------
1994 1995
---- ----
<S> <C> <C>
Cash paid during the six months ended June 30 for:
Interest............................... $ 227,815 $ 131,910
========== ==========
Income taxes........................... $1,380,655 $1,611,995
========== ==========
See accompanying notes.
</TABLE>
- 7 -
<PAGE> 8
JONES MEDICAL INDUSTRIES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 1994 and 1995
1. GENERAL
-------
The unaudited interim financial information reflects all
adjustments (consisting only of normal recurring accruals) which
management considers necessary for a fair presentation of the
results of operations for such periods and is subject to year end
adjustments. Certain footnote disclosures normally included in
financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted from the
unaudited interim financial information as permitted by rules and
regulations of the Securities and Exchange Commission. Management
believes that the disclosures made are adequate to make the
information presented not misleading. The results for the interim
periods are not necessarily indicative of results for the full
year. It is suggested that these financial statements be read in
conjunction with the Company's audited financial statements and
notes thereto for the year ended December 31, 1994, included in the
1994 Annual Report.
RECLASSIFICATION
----------------
Certain reclassifications of prior year quarter presentations have
been made to conform to the 1995 presentation.
2. PRINCIPLES OF CONSOLIDATION
---------------------------
The consolidated financial statements include the accounts of the
Company and its wholly-owned subsidiaries. All significant inter-
company accounts and transactions have been eliminated.
3. EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE
-----------------------------------------------
Earnings per common and common equivalent share are based on the
weighted average number of shares of common stock and common stock
equivalents outstanding during the period (9,584,000 and 9,593,000
for the three months and six months ended June 30, 1994; 9,584,000
and 9,582,000 for the three months and six months ended June 30,
1995.) The computation assumes that outstanding stock options were
exercised and the proceeds used to purchase common shares. It also
assumes that the preferred stock was converted to shares of common
stock.
8
<PAGE> 9
4. INVENTORIES
-----------
Inventories are valued at the lower of cost on a first-in, first-
out basis or market.
<TABLE>
Inventories are comprised as follows:
<CAPTION>
December 31, June 30,
1994 1995
(Unaudited)
----------- -----------
<S> <C> <C>
Raw material.................. $ 3,372,142 $ 4,709,780
Work-in-process............... 1,030,297 1,515,062
Finished goods................ 3,918 151 4,977,877
----------- -----------
$ 8,320,590 $11,202,719
=========== ===========
</TABLE>
5. PROPERTY, PLANT AND EQUIPMENT
-----------------------------
<TABLE>
Property, plant and equipment are as follows:
<CAPTION>
December 31, June 30,
1994 1995
(Unaudited)
----------- -----------
<S> <C> <C>
Land.......................... $ 2,178,398 $ 2,092,136
Building and improvements..... 7,216,650 6,824,823
Equipment and furniture....... 5,258,169 5,736,748
Leasehold improvements........ 63,964 -
Automobiles................... 303,689 307,909
----------- -----------
15,020,870 14,961,616
Less accumulated depreciation
and amortization.............. 2,417,705 2,571,656
----------- -----------
$12,603,165 $12,389,960
=========== ===========
</TABLE>
9
<PAGE> 10
6. INTANGIBLE ASSETS
-----------------
<TABLE>
Intangible assets are as follows:
<CAPTION>
December 31, June 30,
1994 1995
(Unaudited)
----------- -----------
<S> <C> <C>
Distribution systems,
trademarks and licenses..... $11,836,110 $11,836,110
Customer list............... 6,084,967 6,084,967
Restrictive covenants and
other intangibles........... 2,208,710 1,570,050
Goodwill.................... 4,636,813 4,255,298
----------- -----------
24,766,600 23,746,425
Less accumulated
amortization................ 4,092,394 4,082,028
----------- -----------
$20,674,206 $19,664,397
=========== ===========
</TABLE>
7. INCOME TAXES
------------
The provisions for income taxes at June 30, 1994 and 1995 of
$1,648,481 and $2,250,000, respectively, are based on an estimated
effective annual income tax rate of 36.9% and 35.0%.
8. CONTINGENCIES
-------------
The Company currently carries product liability coverage of
$10,000,000 per occurrence and $10,000,000 in the aggregate on a
"claims made" basis. There is no assurance that the Company's
present insurance will cover any potential claims that may be
asserted in the future. In addition, the Company is subject to
legal proceedings and claims which arise in the ordinary course of
business.
10
<PAGE> 11
PART I - FINANCIAL INFORMATION
------------------------------
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
- ----------------------------------------------------------------------
AND FINANCIAL CONDITION
- -----------------------
RESULTS OF OPERATIONS
---------------------
The following table sets forth, for the interim periods indicated,
the percentages which certain components of the Condensed
Consolidated Statements of Income bear to product net sales and the
percentage change of such components (based on aggregate dollars)
as compared to the prior year.
<TABLE>
<CAPTION>
PERCENTAGE PERCENTAGE
INCREASE INCREASE
THREE MONTHS ENDED (DECREASE) SIX MONTHS ENDED (DECREASE)
JUNE 30, AGGREGATE JUNE 30, AGGREGATE
-------------- DOLLAR -------------- DOLLAR
1994 1995 AMOUNT 1994 1995 AMOUNT
---- ---- ------ ---- ---- ------
<S> <C> <C> <C> <C> <C> <C>
Sales 100.0 100.0 15 100.0 100.0 4
Cost of sales 50.8 49.5 12 50.9 47.9 (2)
----- ----- ----- -----
Gross profit margin 49.2 50.5 18 49.1 52.1 11
Selling, general
and administrative
expenses
Selling 18.1 15.5 (2) 17.5 16.0 (4)
General and
administrative 10.7 7.1 (24) 9.0 7.2 (18)
Research and
development 0.2 - (100) 0.2 - (100)
Amortization 3.0 2.4 (8) 2.9 2.5 (9)
----- ----- ----- -----
Total selling,
general and
administrative
expenses 32.0 25.0 (11) 29.6 25.7 (9)
----- ----- ----- -----
Operating income 17.2 25.5 71 19.5 26.4 42
Other income
(expense)
Interest income 0.1 0.2 84 0.1 0.3 155
Interest expense (1.1) (0.2) (73) (1.0) (0.3) (65)
Misc. income 0.2 (0.9) (517) 0.2 (0.5) (346)
----- ----- ----- -----
Income before
income taxes 16.5 24.7 72 18.8 26.0 44
Provision for taxes 6.1 8.6 63 6.9 9.1 36
----- ----- ----- -----
Net income 10.4 16.0 76 11.8 16.9 48
</TABLE>
11
<PAGE> 12
RESULTS OF OPERATIONS
---------------------
SALES
- -----
<TABLE>
The following summarizes approximate sales activity by product category for
the second quarter ended June 30;
<CAPTION>
Sales By
Product Category 1994 % 1995 %
- ---------------- ---- ----- ---- -----
<S> <C> <C> <C> <C>
Vitamin and Nutritional
Supplement Products $ 6,306,000 54.4 $ 7,108,000 53.5
Pharmaceutical Products 5,279,000 45.6 6,174,000 46.5
----------- ----- ----------- -----
Total Sales $11,585,000 100.0 $13,282,000 100.0
</TABLE>
Sales for the second quarter ended June 30, 1995 increased 14.6% to $13.3
million from $11.6 million in the second quarter of 1994. The Company's
sales increased as the result of a 16.9% increase in pharmaceutical products
sales and a 12.7% increase in nutritional products sales.
Sales of pharmaceutical products were up due to a decrease in Thrombin
backorders and continued growth of other pharmaceutical products. Derma
products were up 11%, Therevac was up 24% and Liqui-Char was up 45%.
However, the Company ended the quarter with approximately $800,000 in
backorders of Thrombin.
Sales of vitamin and nutritional products increased due to a 13% increase in
Bronson sales and a 79% increase in contract manufacturing. The MD
Pharmaceutical line decreased 30% due, primarily, to closure of military
bases and the revamping of the militaries buying procedures.
<TABLE>
The following summarizes approximate sales activity by product category for
the six months ended June 30;
<CAPTION>
Sales By
Product Category 1994 % 1995 %
- ---------------- ---- ----- ---- -----
<S> <C> <C> <C> <C>
Vitamin and Nutritional
Supplement Products $13,153,000 55.4 $14,007,000 56.6
Pharmaceutical Products 10,574,000 44.6 10,734,000 43.4
----------- ----- ----------- -----
Total Sales $23,727,000 100.0 $24,741,000 100.0
</TABLE>
Sales for the first six months of 1995 increased 4.3%, or $1,014,000 over the
first six months of 1994 for essentially the same reasons as the second
quarter.
GROSS PROFIT
- ------------
Gross profit during the second quarter of 1995 increased 18% in total dollars
over second quarter 1994. As a percentage of sales, gross profit increased
12
<PAGE> 13
by 1.5% due to improved efficiencies and economies of scale on higher sales
levels.
Gross profit for the first six months of 1995 increased 11% in total dollars,
or 3% of sales, for the same reason as the second quarter.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
- --------------------------------------------
Selling expenses declined 2% in the second quarter of 1995 primarily due to
lower sales commissions and royalties. For the same reasons the first six
months selling expenses of 1995 were also lower by 4%.
General and administrative expenses decreased 24% or $300,000 in the second
quarter of 1995 over second quarter 1994 due to the unusual expenses in 1994
associated with an aborted public offering of the Company's common stock.
Likewise, 1995 first six months expenses were also down $377,000 or 18%.
Amortization expenses associated with intangible assets and included in
selling and general and administrative expenses were also down by 8% and 9%
respectively for second quarter and the first six months of 1995 over 1994
due to the expiration of the amortization of certain intangible assets.
OPERATING INCOME
- ----------------
Operating income during the second quarter of 1995, compared to the second
quarter of 1994, increased 71% in aggregate terms, and as a percentage of
sales from 17.2% to 25.5% due to lower selling, general and administrative
expenses and higher gross margins.
For the first six months of 1995 operating income increased by 42% for
essentially the same reasons.
OTHER INCOME (EXPENSES)
- -----------------------
Interest income increased 84% for the second quarter of 1995 and 155%,
compared to the same periods of 1994, for the first six months due to larger
cash balances on hand.
Interest expense was down 73% and 65% respectively for second quarter and the
first six months as compared to the same periods of 1994 due to the
elimination of long-term debt.
Miscellaneous income decreased 517% for the second quarter and 346% for the
first six months of 1995 due to the sale of certain real property for a loss
of $115,000.
INCOME TAXES
- ------------
The provision for taxes increased for 1995 both in dollars and as a
percentage of sales, however, the effective tax rate decreased from
approximately 37% in 1994 to 35% in 1995 for both second quarter and the
first six months due to more detailed forecasting.
13
<PAGE> 14
NET INCOME
- ----------
Earnings per share increased 69%, to $.22 per share on 9,584,000 average
shares outstanding for the second quarter of 1995 from $.13 per share for the
second quarter of 1994, and 52% for the first six months of 1995, to $.44 per
share on 9,582,000 average shares outstanding from $.29 per share in 1994 on
9,593,000 average shares outstanding.
FINANCIAL CONDITION
- -------------------
At June 30, the Company's current ratio, 3.6:1, was essentially flat with
December 31, 1994. Working capital increased from $15 million at December
31, 1994 to $16 million at June 30, 1995 and debt to equity decreased from
13.0% at December 31, 1994 to 2.8% at June 30, 1995.
Inventories were up by 2.9 million at June 30, 1995 over December 31, 1994,
primarily from the rebuild up of JMI Thrombin inventories and an increase of
raw material for increasing contract sales.
Accounts receivable increased due to larger sales volume in the last part of
second quarter. In days outstanding accounts receivable increased from 33
days at December 31, 1994 to 38 days at June 30, 1995.
SUBSEQUENT EVENTS
- -----------------
An agreement in principle has been reached with Eli Lilly and Company to
acquire the exclusive U.S. marketing rights to Brevital(R), a rapid
ultrashort-acting barbiturate anesthetic product. Approval for the
transaction was received July 31, 1995 from the United States Federal Trade
Commission (FTC) and completion of this transaction is anticipated within the
next 15 days.
14
<PAGE> 15
PART II - OTHER INFORMATION
---------------------------
ITEM 1. LEGAL PROCEEDINGS
- --------------------------
During the latter part of April, 1995, the Company settled the lawsuit known
as Jones Medical Industries, Inc. v. John A. Altshuler et al., Cause No.
----------------------------------------------------------
653098 filed in the Circuit Court of St. Louis County, Missouri. In the
lawsuit, the Company had requested the Court, among other things, to order
the Escrow Agent to release to the Company, 90,000 of the 98,000 shares of
preferred stock of the Company then held in escrow in accordance with the
provisions of the Agreement and Plan of Reorganization pursuant to which the
Company acquired GenTrac, Inc. in May of 1991. Pursuant to the settlement,
53,996 shares of preferred stock were converted to common stock and
distributed to former shareholders of GenTrac, Inc. and the remaining 44,004
shares of preferred stock were distributed to the Company. The cash
dividends that were paid on the preferred stock and were being held in escrow
were distributed to the former shareholders of GenTrac, Inc. and to the
Company on a pro rata basis.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
- -----------------------------------------
None.
15
<PAGE> 16
SIGNATURES
----------
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.
Jones Medical Industries, Inc.
Date: August 11, 1995 By: /s/ Dennis M. Jones
------------------------------- -------------------------------
Dennis M. Jones, President
Date: August 11, 1995 By: /s/ Judith A. Jones
------------------------------- -------------------------------
Judith A. Jones,
Vice President of Finance
and Principal Financial
and Accounting Officer
16
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> APR-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 3,675,226
<SECURITIES> 120,000
<RECEIVABLES> 5,295,788
<ALLOWANCES> 82,794
<INVENTORY> 11,202,719
<CURRENT-ASSETS> 21,671,844
<PP&E> 14,961,616
<DEPRECIATION> 2,571,656
<TOTAL-ASSETS> 54,858,037
<CURRENT-LIABILITIES> 5,984,070
<BONDS> 0
<COMMON> 373,835
0
19
<OTHER-SE> 44,534,008
<TOTAL-LIABILITY-AND-EQUITY> 54,858,037
<SALES> 24,740,731
<TOTAL-REVENUES> 24,822,817
<CGS> 11,842,748
<TOTAL-COSTS> 5,729,302
<OTHER-EXPENSES> 742,885
<LOSS-PROVISION> 18,000
<INTEREST-EXPENSE> 83,910
<INCOME-PRETAX> 6,423,972
<INCOME-TAX> 2,250,000
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,173,972
<EPS-PRIMARY> .44
<EPS-DILUTED> 0
</TABLE>
