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U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934.
For the quarterly period ended September 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 number 1-4530
ASTREX, INC.
(Exact name of small business issuer as specified in its charter)
Delaware 13-1930803
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
205 Express Street, Plainview, New York 11803
(Address of principal executive offices)
(516) 433-1700
(Registrant s telephone number, including area code)
(Former name, former address and former fiscal year,
if changed since last report)
Check 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
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check mark whether the registrant has filed all documents and reports required
to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of
1934 subsequent to the distribution of securities under a plan confirmed by
a court. Yes X No
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the registrant's classes of
common stock, as of the latest practicable date. As of October 10, 1995,
common shares outstanding were 5,090,363.
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ASTREX, INC.
INDEX
PART I:
Financial Statements: Page No.
Consolidated Balance Sheets
September 30, 1995 (unaudited) and March 31, 1995 1-2
Consolidated Statement of Operations (unaudited)
Six Months and Three Months Ended
September 30, 1995 and 3
Consolidated Statement of Cash Flows (unaudited)
Six Months Ended September 30, 1995 and 4
Notes to Consolidated Financial Statements 5
Management's Discussion and Analysis of
Financial Condition and Results of Operations 6-7
PART II:
Other Information and Signatures 8
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<TABLE>
<CAPTION>
PART I - Financial Information
ASTREX, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30, 1995 March 31, 1995
(Unaudited)
(000) Omitted
Current Assets:
<S> <C> <C>
Cash $2 $3
Accounts receivable (net of
allowance for doubtful accounts
of $86 at September 30, 1995 and
$103 at March 31, 1995) 1,497 1,435
Merchandise inventories 3,770 3,785
Prepaid expenses and other
current assets 40 84
Total Current Assets 5,309 5,307
Property, plant and equipment at
cost (net of accumulated depreciation
of $155 at September 30, 1995 and
$128 at March 31, 1995) 713 718
Total Assets $6,022 $6,025
</TABLE>
See accompanying notes to consolidated financial statements.
1
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<TABLE>
<CAPTION>
ASTREX, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30, 1995 March 31, 1995
(Unaudited)
(000) Omitted
Current Liabilities:
<S> <C> <C>
Loans payable $1,802 $1,564
Accounts payable 1,306 1,619
Accrued liabilities 267 355
Total current liabilities 3,375 3,538
Shareholders' Equity:
Preferred Stock, Series A - issued, none - -
Preferred Stock, Series B - issued, none - -
Common Stock - par value $.01 per share;
authorized, 15,000,000 shares; issued,
5,090,363 at September 30, 1995 and
4,690,363 at March 31, 1995 51 47
Additional paid-in capital 3,548 3,540
Accumulated Deficit (952) (1,100)
Total shareholders' equity 2,647 2,487
Total liabilities and shareholders' equity $6,022 $6,025
</TABLE>
See accompanying notes to consolidated financial statements.
2
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<TABLE>
<CAPTION>
ASTREX, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
SIX MONTHS ENDED THREE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1995 1994 1995 1994
(000) Omitted (000) Omitted
<S> <C> <C> <C> <C>
Net sales $6,479 $5,959 $3,245 $2,969
Cost of sales 4,884 4,602 2,440 2,289
Gross profit 1,595 1,357 805 680
Selling, general and
administrative expenses 1,327 1,392 670 708
Income (loss) from
operations 268 (35) 135 (28)
Interest expense (117) (94) (61) (51)
Other income - net - 5 - 5
Income (loss) before provision
for income taxes 151 (124) 74 (74)
Provision for income taxes 4 5 4 2
Net income (loss) $147 ($129) $70 ($76)
Per share data for the six months and three months ended
September 30, 1995 and 1994 are as follows:
Weighted average number of
common shares outstanding 4,823,696 4,690,363 4,957,029 4,690,363
Net income (loss) per share $0.03 ($0.03) $0.01 ($0.02)
</TABLE>
See accompanying notes to consolidated financial statements.
3
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<TABLE>
<CAPTION>
ASTREX, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
1995 1994
(000) Omitted
Cash Flows (Uses) From Operating Activities:
<S> <C> <C>
Net income (loss) $147 ($129)
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation and amortization 28 24
Issuance of common stock as compensation to Directors 12 -
Changes in assets and liabilities:
(Increase) decrease in accounts and note receivable (62) 710
Decrease (increase) in prepaid expenses and
other current assets 44 (75)
Decrease in merchandise inventories 15 351
Decrease in accounts payable (313) (467)
Decrease in accrued liabilities (88) (133)
Net cash (used in) provided by operating activities (217) 281
Cash flows used in investing activities:
Purchases of fixed assets (22) (26)
Net cash used in investing activities (22) (26)
Cash flows from financing activities:
Proceeds from (repayments of) loans payable 238 (256)
Net cash provided by (used in) financing activities 238 (256)
Net decrease in cash for the six months
ended September 30 (1) (1)
Cash - beginning of period 3 3
Cash - end of period $2 $2
</TABLE>
See accompanying notes to consolidated financial statements.
4
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ASTREX, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
UNAUDITED FINANCIAL STATEMENTS
In the opinion of the Company, the accompanying unaudited consolidated financial
statements contain all adjustments (consisting only of normal recurring
accruals) necessary to present fairly its financial position as of September
30, 1995. The results of operations and cash flows for the six month period
ended September 30, 1995 are not necessarily indicative of the results to be
expected for the full year. In the opinion of Management, the information in
this interim report for the six months ended September 30, 1995 presents
fairly the Company's financial position consistent with the Company's
accounting practices and principles used in interim reports. Accordingly,
certain items included in these statements are based upon best estimates,
particularly cost of goods sold. For the six month periods ended
September 30, 1995 and 1994 these costs have principally been determined by
utilizing perpetual inventory records. The calculation of the actual cost of
goods sold amount is predicated upon a physical inventory taken only at the
end of each fiscal year. These financial statements, which are unaudited
(except for the Consolidated Balance Sheet as of March 31, 1995 which is
audited), are based on certain estimates and are subject to year end audit
adjustments.
5
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ASTREX, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
OR PLAN OF OPERATIONS
RESULTS OF OPERATIONS
Revenues
Sales increased by approximately $520,000, or 8.7%, for the six months and
approximately $276,000, or 9.3%, for the three months ended September 30,
1995 from the comparable six and three month periods in 1994, respectively.
These increases are the result of continued growth in the commercial and
industrial connector markets, combined with stabilized military sales.
Gross Profit
Gross profits increased from 22.8% to 24.6% for the six months, and
22.9% to 24.8% for the three months ended September 30, 1994 and
1995, respectively. These increases are a result of the Company's
focus on selling higher margin, value-added products.
Selling, General & Administrative
Selling, general and administrative expenses decreased approximately
$65,000, or 4.7%, for the six months and $38,000, or 5.4%, for the three
months ended September 30, 1995 from the comparable previous six and
three month periods in 1994. These decreases are primarily the result
of reorganizing certain job functions resulting in a reduction in
personnel costs.
Interest Expense
Interest expense increased approximately $23,000 for the six months and
$10,000 for the three months ended September 30, 1995, from the previous
comparable six and three month period in 1994. These increases are due to
a higher average amount outstanding each period on the loan to the
Company's lender, and by an increase in the interest rate for the two
periods from 10.5% to 12.4% for the six months and 10.9% to 12.3%
for the three months ended September 30, 1994 and 1995, respectively.
6
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ASTREX, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
OR PLAN OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
The Company utilized approximately $217,000 for operating activities for
the six months ended September 30, 1995, principally to repay accounts
payable and accrued liabilities. The Company received $238,000 in cash
through financing activities as a result of increased borrowings from the
Company's lender. The Company's loan agreement, collateralized by
substantially all of the Company's assets, provides for
a line of credit based on the amount of the Company's inventory and accounts
receivable, but which cannot exceed $2,500,000. The term of the loan presently
expires on July 31, 1996 at which time the Company anticipates, but cannot
guarantee, that it will be renewed or replaced. The Company's relations
with its secured lender are satisfactory. The Company believes that its
current cash position as well as its available credit facility are
adequate for the foreseeable future. The amount outstanding under this
loan was approximately $1,802,000 at September 30, 1995 and
$1,564,000 at March 31, 1995.
7
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PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
(A) Exhibits
None
(B) Reports on Form 8-K:
None
SIGNATURES
Pursuant to the requirements of Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ASTREX, INC.
Date: October 16 , 1995 By: /s/ Michael McGuire
Michael McGuire
President
Chief Executive Officer
By: /s/ Irene S. Marcic
Irene S. Marcic
Treasurer
Chief Financial Officer
8
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-END> SEP-30-1995
<CASH> 2
<SECURITIES> 0
<RECEIVABLES> 1583
<ALLOWANCES> (86)
<INVENTORY> 3770
<CURRENT-ASSETS> 5309
<PP&E> 868
<DEPRECIATION> (155)
<TOTAL-ASSETS> 6022
<CURRENT-LIABILITIES> 3375
<BONDS> 0
<COMMON> 51
0
0
<OTHER-SE> 2596
<TOTAL-LIABILITY-AND-EQUITY> 6022
<SALES> 6479
<TOTAL-REVENUES> 6479
<CGS> 4884
<TOTAL-COSTS> 4884
<OTHER-EXPENSES> 1327
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 117
<INCOME-PRETAX> 151
<INCOME-TAX> 4
<INCOME-CONTINUING> 147
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 147
<EPS-PRIMARY> .03
<EPS-DILUTED> 0
</TABLE>
