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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 December 31, 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
(IssuerOs 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 February 12, 1996,
common shares outstanding were 5,090,363.
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ASTREX, INC.
INDEX
PART I:
Financial Statements: Page No.
Consolidated Balance Sheets
December 31, 1995 (unaudited) and March 31, 1995 1-2
Consolidated Statements of Operations (unaudited)
Nine Months and Three Months Ended
December 31, 1995, and 1994 3
Consolidated Statements of Cash Flows (unaudited)
Nine Months Ended December 31, 1995, and 1994 4
Notes to Consolidated Financial Statements 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
December 31, 1995 March 31, 1995
(Unaudited)
(000) Omitted
<S> <C> <C>
Current Assets:
Cash $2 $3
Accounts receivable (net of
allowance for doubtful
accounts of $88 at December
31, 1995 and
$103 at March 31, 1995) 1,424 1,435
Merchandise inventories 3,742 3,785
Prepaid expenses
and other
current assets 38 84
________ ________
Total Current Assets 5,206 5,307
Property, plant and
equipment at
cost (net of accumulated
depreciation
of $170 at December
31, 1995 and
$128 at March 31, 1995) 700 718
________ ________
Total Assets $5,906 $6,025
________ ________
________ ________
</TABLE>
See accompanying notes to consolidated financial statements.
-1-
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<TABLE>
<CAPTION>
ASTREX, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, 1995 March 31, 1995
(Unaudited)
_________________ ________________
(000) Omitted
<S> <C> <C>
Current Liabilities:
Loans payable $1,632 $1,564
Accounts payable 1,278 1,619
Accrued liabilities 280 355
Total current liabilities 3,190 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 December 31, 1995 and
4,690,363 at March 31, 1995 51 47
Additional paid-in capital 3,548 3,540
Accumulated Deficit (883) (1,100)
_________________ ________________
Total shareholders' equity 2,716 2,487
_________________ ________________
Total liabilities and
shareholders' equity $5,906 $6,025
_________________ ________________
_________________ ________________
</TABLE>
See accompanying notes to consolidated financial statements.
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<TABLE>
<CAPTION>
ASTREX, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
NINE MONTHS ENDED THREE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
1995 1994 1995 1994
______ ______ ______ ______
(000) Omitted (000) Omitted
<S> <C> <C> <C> <C>
Net sales $9,786 $8,960 $3,308 $3,001
Cost of sales 7,366 6,944 2,482 2,342
______ ______ ______ ______
Gross profit 2,420 2,016 826 659
Selling, general and
administrative expenses 2,016 2,109 690 717
______ ______ ______ ______
Income (loss) from operations 404 (93) 136 (58)
Interest expense (176) (147) (59) (53)
Other income - net - 5 - 0
Expenses related to restructuring - (75) - (75)
______ ______ ______ ______
Income (loss) before
provision for income taxes 228 (310) 77 (186)
Provision for income taxes (11) (8) (8) (3)
______ ______ ______ ______
Net income (loss) $217 ($318) $69 ($189)
______ ______ ______ ______
Per share data for the nine months and three months ended December 31, 1995
and 1994 are as follows:
Weighted average number of
common shares outstanding 4,912,585 4,690,363 5,090,363 4,690,363
Net income (loss) per share $0.04 ($0.07) $0.01 ($0.04)
</TABLE>
See accompanying notes to consolidated financial statements.
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<TABLE>
<CAPTION>
ASTREX, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
FOR THE NINE MONTHS ENDED DECEMBER 31,
1995 1994
_________________________________________
(000) Omitted
<S> <C> <C>
Cash Flows (Uses) From
Operating Activities:
Net income (loss) $217 ($318)
Adjustments to reconcile net
income (loss) to
net cash provided by
operating activities:
Depreciation and amortization 42 36
Issuance of common stock
as compensation to Directors 12 -
Changes in assets and liabilities:
Decrease in accounts and
note receivable 11 875
Decrease (increase)
in prepaid expenses and
other current assets 46 (23)
Decrease in merchandise
inventories 43 488
Decrease in
accounts payable (341) (358)
Decrease in accrued
liabilities (75) (64)
_____ _____
Net cash (used in)
provided by operating activities (45) 636
_____ _____
Cash flows used in investing activities:
Purchases of fixed assets (24) (28)
_____ _____
Net cash used in investing activities (24) (28)
_____ _____
Cash flows from financing activities:
Proceeds from (repayments of
loans payable 68 (609)
_____ _____
Net cash provided by (used in)
financing activities 68 (609)
_____ _____
Net decrease in cash
for the nine months
ended December 31 (1) (1)
Cash - beginning of period 3 3
_____ _____
Cash - end of period $2 $2
_____ _____
_____ _____
</TABLE>
See accompanying notes to 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
December 31, 1995. The results of operations and cash flows for the nine month
period ended December 31, 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 nine months ended December 31, 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 nine month periods ended December 31,
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.
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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 $826,000, or 9.2%, for the nine months and
approximately $307,000, or 10.2%, for the three months ended December 31, 1995
from the comparable nine 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 22.5% to 24.7% for the nine months, and 22.0% to
25.0% for the three months ended December 31, 1994 and 1995, respectively.
These increases are a result of the CompanyOs focus on selling higher margin,
value-added products.
SELLING, GENERAL & ADMINISTRATIVE
Selling, general and administrative expenses decreased approximately $93,000,
or 4.4%, for the nine months and $27,000, or 3.8%, for the three months ended
December 31, 1995 from the comparable previous nine 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 $29,000 for the nine months and $6,000
for the three months ended December 31, 1995, from the previous comparable nine
and three month periods in 1994. These increases are due to a higher average
amount outstanding on the loan with the Company's lender, for the first nine
months of fiscal year March 31, 1996, and by an increase in the interest rate
for the two periods from approximately 10.9% to 12.4% for the nine months and
11.5% to 12.3% for the three months ended December 31, 1994 and 1995,
respectively.
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ASTREX, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
R PLAN OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
The Company utilized approximately $45,000 for operating activities for the
nine months ended December 31, 1995, principally to repay accounts payable. The
Company received $68,000 in cash through financing activities as a result of
increased borrowings from the CompanyOs lender. The CompanyOs loan agreement,
collateralized by substantially all of the Company's assets, provides for a
line of credit based on the amount of the CompanyOs 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
assure, that it will be renewed or replaced. The CompanyOs 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
$1,632,000 at December 31, 1995 and $1,564,000 at March 31, 1995.
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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
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: February 13, 1996 By: /s/ Michael McGuire
Michael McGuire
President
Chief Executive Officer
By: /s/ Irene S. Marcic
Irene S. Marcic
Treasurer
Chief Financial Officer
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<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-END> DEC-31-1995
<CASH> 2
<SECURITIES> 0
<RECEIVABLES> 1512
<ALLOWANCES> (88)
<INVENTORY> 3742
<CURRENT-ASSETS> 5206
<PP&E> 870
<DEPRECIATION> (170)
<TOTAL-ASSETS> 5906
<CURRENT-LIABILITIES> 3190
<BONDS> 0
51
0
<COMMON> 0
<OTHER-SE> 2665
<TOTAL-LIABILITY-AND-EQUITY> 5906
<SALES> 9786
<TOTAL-REVENUES> 9786
<CGS> 7366
<TOTAL-COSTS> 7366
<OTHER-EXPENSES> 2016
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 176
<INCOME-PRETAX> 228
<INCOME-TAX> 11
<INCOME-CONTINUING> 217
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 217
<EPS-PRIMARY> .04
<EPS-DILUTED> 0
</TABLE>
