<PAGE>
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 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 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 July 25, 1995, common
shares outstanding were 4,690,363.
<PAGE>
ASTREX, INC.
INDEX
PART I:
Financial Statements: Page No.
Consolidated Balance Sheets
June 30, 1995 (unaudited) and March 31, 1995 1-2
Consolidated Statements of Operations (unaudited)
Three Months Ended June 30, 1995 and 1994 3
Consolidated Statement of Cash Flows (unaudited)
Three Months Ended June 30, 1995 and 1994 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
<PAGE>
PART I - Financial Information
ASTREX, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, 1995 March 31, 1995
(Unaudited)
(000) Omitted
Current Assets:
Cash $2 $3
Accounts receivable (net of
allowance for doubtful accounts
of $109 at June 30, 1995 and
$103 at March 31, 1995) 1,433 1,435
Merchandise inventories 3,713 3,785
Prepaid expenses and other
current assets 68 84
Total Current Assets 5,216 5,307
Property, plant and equipment at
cost (net of accumulated
depreciation of $141 at June 30, 1995
and $128 at March 31, 1995) 720 718
Total Assets $5,936 $6,025
See accompanying notes to consolidated financial statements.
1
<PAGE>
ASTREX, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, 1995 March 31, 1995
(Unaudited)
(000) Omitted
Current Liabilities:
Loans payable $1,644 $1,564
Accounts payable 1,437 1,619
Accrued liabilities 291 355
Total current liabilities 3,372 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,
4,690,363 at June 30, 1995 and
March 31, 1995 47 47
Additional paid-in capital 3,540 3,540
Accumulated Deficit (1,023) (1,100)
Total shareholders' equity 2,564 2,487
Total liabilities and
shareholders' equity $5,936 $6,025
See accompanying notes to consolidated financial statements.
2
<PAGE>
ASTREX, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
THREE MONTHS ENDED
JUNE 30,
1995 1994
(000) Omitted
Net sales $3,234 $2,990
Cost of sales 2,444 2,312
Gross profit 790 678
Selling, general and
administrative expenses 657 684
Income (loss) from operations 133 (6)
Interest expense 56 44
Income (loss) before provision
for income taxes 77 (50)
Provision for income taxes 0 3
Net income (loss) $77 ($53)
Per share data for the three months ended June 30, 1995 and 1994 are as
follows:
Weighted average number of
common shares outstanding 4,690,363 4,690,363
Net income (loss) per share $0.02 ($0.01)
See accompanying notes to consolidated financial statements.
3
<PAGE>
ASTREX, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
FOR THE THREE MONTHS ENDED JUNE 30,
1995 1994
(000) Omitted
Cash Flows (Uses) From Operating Activities:
Net income (loss) $77 ($53)
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation and amortization 13 11
Changes in assets and liabilities:
Net decrease in accounts and note
receivable 2 855
Decrease in prepaid expenses and
other current assets 16 36
Decrease in merchandise inventories 72 142
Decrease in accounts payable (182) (356)
Decrease in accrued liabilities (64) (97)
Net cash (used in) provided by
operating activities (66) 538
Cash flows used in investing activities:
Purchases of fixed assets (15) (17)
Net cash used in investing activities (15) (17)
Cash flows from financing activities:
Proceeds from (repayments of)
loans payable 80 (522)
Net cash provided by (used in)
financing activities 80 (522)
Net decrease in cash for the three months
ended June 30 (1) (1)
Cash - beginning of period 3 3
Cash - end of period $2 $2
See accompanying notes to consolidated financial statements.
4
<PAGE>
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
June 30, 1995. The results of operations and cash flows for the three month
period ended June 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 three months ended June 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 three month periods ended
June 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
<PAGE>
ASTREX, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
OR PLAN OF OPERATIONS
RESULTS OF OPERATIONS
Revenues
Sales increased by approximately $244,000 or 8.2%, for the three months ended
June 30, 1995 from the comparable three month period in fiscal 1995. This
increase is the result of continued growth in the commercial and industrial
connector markets.
Gross Margin
Gross margins increased from 22.7% to 24.4% for the three months ended
June 30, 1994 and 1995, respectively. This 1.7% increase is a result of
the Company's efforts on improving its margins as well as its focus on
selling higher margin, value-added products.
Selling, General & Administrative
Selling, general and administrative expenses decreased approximately $27,000
for the three months ended June 30, 1995 from the comparable three month
period ended June 30, 1994. This decrease is primarily the result of
reorganizing certain job functions resulting in a reduction in personnel
costs.
Interest Expense
Interest expense increased approximately $12,000 for the three months ended
June 30, 1995, from the previous comparable three month period in fiscal
1995. This increase is 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 10.25% to 12.50% for the three months ended
June 30, 1994 and 1995, respectively.
6
<PAGE>
ASTREX, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
OR PLAN OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
The Company utilized approximately $66,000 for operating activities for the
three months ended June 30, 1995, principally to repay accounts payable and
accrued liabilities, offset by a decrease in inventory of approximately
$72,000. The Company received $80,000 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 $1,644,000 at June 30, 1995 and $1,564,000
at March 31, 1995.
7
<PAGE>
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: August 8, 1995 By: /s/ Michael McGuire
Michael McGuire
President
Chief Executive Officer
By: /s/ Irene S. Marcic
Irene S. Marcic
Treasurer
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-END> JUN-30-1995
<CASH> 2
<SECURITIES> 0
<RECEIVABLES> 1542
<ALLOWANCES> (109)
<INVENTORY> 3713
<CURRENT-ASSETS> 5216
<PP&E> 861
<DEPRECIATION> (141)
<TOTAL-ASSETS> 5936
<CURRENT-LIABILITIES> 3372
<BONDS> 0
<COMMON> 47
0
0
<OTHER-SE> 2517
<TOTAL-LIABILITY-AND-EQUITY> 5936
<SALES> 3234
<TOTAL-REVENUES> 3234
<CGS> 2444
<TOTAL-COSTS> 2444
<OTHER-EXPENSES> 657
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 56
<INCOME-PRETAX> 77
<INCOME-TAX> 0
<INCOME-CONTINUING> 77
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 77
<EPS-PRIMARY> .02
<EPS-DILUTED> 0
</TABLE>
