<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, 1996
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
(Issuer's telephone number, including area code)
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed
since last report)
Check whether the issuer (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 30, 1996, common
shares outstanding were 5,375,363.
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ASTREX, INC.
INDEX
Page No.
PART I:
Financial Statements:
Consolidated Balance Sheets
June 30, 1996 (unaudited) and March 31, 1996 . . . . . . . . . . . . 1-2
Consolidated Statements of Income (unaudited)
Three Months Ended June 30, 1996 and 1995 . . . . . . . . . . . . . . . 3
Consolidated Statements of Cash Flows (unaudited)
Three Months Ended June 30, 1996 and 1995 . . . . . . . . . . . . . . . 4
Notes to Consolidated Financial Statements (unaudited). . . . . . . . . 5
Management's Discussion and Analysis or
Plan 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
June 30, 1996 March 31, 1996
(Unaudited)
(000) Omitted
Current Assets:
<S> <C> <C>
Cash $ 2 $ 2
Accounts receivable (net of
allowance for doubtful accounts of $87
at June 30, 1996 and at March 31, 1996) 1,561 1,765
Merchandise inventories 3,529 3,934
Prepaid expenses and other
current assets 89 21
-- --
Total Current Assets 5,181 5,722
Property, plant and equipment at
cost (net of accumulated depreciation
of $200 at June 30, 1996 and
$185 at March 31, 1996) 682 692
---- --- ---- --- ---
Total Assets $5,863 $6,414
====== ======
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
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<TABLE>
<CAPTION>
ASTREX, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, 1996 March 31, 1996
(Unaudited)
(000) Omitted
Current Liabilities:
<S> <C> <C>
Loans payable $1,553 $1,782
Accounts payable 1,219 1,650
Accrued liabilities 267 280
--- ---
Total current liabilities 3,039 3,712
----- -----
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,
5,375,363 at June 30, 1996 and
5,090,363 at March 31, 1996 54 51
Additional paid-in capital 3,604 3,548
Accumulated Deficit (822) (897)
---- ----
2,836 2,702
Less: Deferred Compensation (12) -
---
Total shareholders' equity 2,824 2,702
----- -----
Total liabilities and shareholders' equity $5,863 $6,414
====== ======
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
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<TABLE>
<CAPTION>
ASTREX, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
THREE MONTHS ENDED
JUNE 30,
1996 1995
---- ----
(000) Omitted
<S> <C> <C>
Net sales $3,759 $3,234
Cost of sales 2,855 2,444
Gross profit 904 790
Selling, general and
administrative expenses 772 657
Income from operations 132 133
Interest expense (49) (56)
Income before provision
for income taxes 83 77
Provision for income taxes (8) 0
Net income $75 $77
Per share data for the three months ended June 30, 1996 and 1995 are as follows:
Weighted average number of
common shares outstanding 5,255,857 4,690,363
Net income per share $0.01 $0.02
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
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<TABLE>
<CAPTION>
ASTREX, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
FOR THE THREE MONTHS ENDED JUNE 30,
1996 1995
(000) Omitted
<S> <C> <C>
Cash Flows (Uses) From Operating Activities:
Net income $75 $77
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 14 13
Stock award compensation expense 1 -
Changes in operating assets and liabilities:
Decrease in accounts and note receivable 204 2
(Increase) decrease in prepaid expenses and
other current assets (68) 16
Decrease in merchandise inventories 405 72
Decrease in accounts payable (431) (182)
Decrease in accrued liabilities (13) (64)
--- ---
Net cash provided by (used in) operating activities 187 (66)
--- ---
Cash flows used in investing activities:
Purchases of fixed assets (5) (15)
-- ---
Net cash used in investing activities (5) (15)
-- ---
Cash flows from financing activities:
Proceeds from issuance of common stock 47 -
(Repayments of) proceeds from loans payable, net (229) 80
---- --
Net cash (used in) provided by financing activities (182) 80
---- --
Net decrease in cash for the three months
ended June 30 0 (1)
Cash - beginning of period 2 3
- -
Cash - end of period $2 $2
== ==
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
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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 June 30,
1996. The results of operations and cash flows for the three month period ended
June 30, 1996 and 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, 1996 and 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, 1996 and 1995 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, 1996 which is audited), are based on certain estimates and are subject
to year end audit adjustments.
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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 $525,000, or 16.2%, for the three months ended
June 30, 1996 from the comparable three month period in 1995. This increase is
the result of the Company's improved and restructured marketing efforts as well
as (in terms of the past several years) strong military sales.
GROSS PROFIT
The gross profit percentage decreased marginally from 24.4% to 24.0% for the
three months ended June 30, 1995 and 1996, respectively. Despite ongoing price
pressures, the Company was able to maintain essentially stable margins.
SELLING, GENERAL & ADMINISTRATIVE
Selling, general and administrative expenses increased approximately $115,000,
or 17.5%, for the three months ended June 30, 1996 from the comparable previous
three month period in 1995. This increase is primarily due to the increase in
salaries, commissions and other costs needed to create and support the higher
sales volume.
INTEREST EXPENSE
Interest expense decreased approximately $7,000 for the three months ended June
30, 1996, from the previous comparable three month period in 1995. This decrease
is due primarily to a reduction in the interest rate from approximately 12.50%
to 10.50% for the three months ended June 30, 1995 and 1996, respectively.
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ASTREX, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
OR PLAN OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
The Company generated $187,000 in cash from its operating activities, and
$47,000 in proceeds from the issuance of restricted common stock to employees
(pursuant to approval by the Board of Directors). The Company used this cash
primarily to paydown the Company's loan. 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, 1997 at which time the Company anticipates, but cannot
assure, 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
$1,553,000 at June 30, 1996 and $1,782,000 at March 31, 1996.
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<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
In accordance with 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 7, 1996 By: /s/ MICHAEL MCGUIRE
--------------- ------------------
Michael McGuire
President
Chief Executive Officer
By: /s/ IRENE S. MARCIC
Irene S. Marcic
Chief Financial Officer,
Vice President,
Treasurer and Secretary
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> JUN-30-1996
<CASH> 2
<SECURITIES> 0
<RECEIVABLES> 1648
<ALLOWANCES> (87)
<INVENTORY> 3529
<CURRENT-ASSETS> 5181
<PP&E> 882
<DEPRECIATION> (200)
<TOTAL-ASSETS> 5863
<CURRENT-LIABILITIES> 3039
<BONDS> 0
54
0
<COMMON> 0
<OTHER-SE> 2770
<TOTAL-LIABILITY-AND-EQUITY> 5863
<SALES> 3759
<TOTAL-REVENUES> 3759
<CGS> 2855
<TOTAL-COSTS> 2855
<OTHER-EXPENSES> 772
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 49
<INCOME-PRETAX> 83
<INCOME-TAX> 8
<INCOME-CONTINUING> 75
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 75
<EPS-PRIMARY> .01
<EPS-DILUTED> 0
</TABLE>
