FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
[X] Quarterly Report under Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended March 31, 1997
[ ] 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: 0-16195
II-VI INCORPORATED
(Exact name of registrant as specified in its charter)
PENNSYLVANIA 25-1214948
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
375 Saxonburg Boulevard
Saxonburg, PA 16056 16056
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 412-352-4455
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 registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days.
Yes x No
--- ---
Indicate the number of shares outstanding of each of the issuer's
classes of common stock as of the latest practicable date:
At May 9, 1997, 6,400,756 shares of Common Stock, no par value,
of the registrant were outstanding.
II-VI INCORPORATED AND SUBSIDIARIES
-----------------------------------
INDEX
-----
<TABLE>
<CAPTION>
Page No.
--------
<S> <C>
PART 1 FINANCIAL INFORMATION
Item 1. Financial Statements.
Condensed Consolidated Balance Sheets --
March 31, 1997 and June 30, 1996. . . . . . . . . . . 3
Condensed Consolidated Statements of Earnings --
Three and nine months ended March 31, 1997
and 1996. . . . . . . . . . . . . . . . . . . . . . . 4
Condensed Consolidated Statements of
Shareholders' Equity -- Three and nine months ended
March 31, 1997. . . . . . . . . . . . . . . . . . . . 6
Condensed Consolidated Statements of
Cash Flows -- Nine months ended
March 31, 1997 and 1996 . . . . . . . . . . . . . . . 7
Notes to Condensed Consolidated
Financial Statements. . . . . . . . . . . . . . . . . 8
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations . . . . 10
PART II OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K. . . . . . . . . . . 12
</TABLE>
2
PART 1 - FINANCIAL INFORMATION
Item 1. Financial Statements
- -------------------------------------------------
II-VI Incorporated and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
($000 except share data)
<TABLE>
<CAPTION>
March 31, June 30,
1997 1996
--------- --------
<S> <C> <C>
Assets
Current Assets
Cash and cash equivalents $ 8,817 $ 9,417
Accounts receivable-less allowance for doubtful
accounts of $275 at 3/31/97 and $246 at 6/30/96 9,757 8,712
Inventories 7,281 5,490
Deferred income taxes 430 429
Prepaid and other current assets 657 607
------- -------
Total Current Assets 26,942 24,655
Property, Plant & Equipment, net 18,166 15,085
Goodwill 2,016 2,138
Other Assets 2,110 2,291
------- -------
$49,234 $44,169
------- -------
Liabilities and Shareholders' Equity
Current Liabilities
Notes payable $ 685 $ 1,393
Accounts payable-trade 1,377 1,260
Accrued salaries, wages and bonuses 2,877 3,105
Income taxes payable - 607
Accrued profit sharing contribution 538 556
Other current liabilities 872 1,024
Current portion of long-term debt 72 23
------- -------
Total Current Liabilities 6,421 7,968
Long-Term Debt--less current portion 700 45
Deferred Income Taxes 1,686 1,753
Commitments & Contingencies - -
Shareholders' Equity
Preferred stock, no par value; authorized-
5,000,000 shares; unissued - -
Common stock, no par value; authorized
-30,000,000 shares; issued 6,778,446 shares
at 3/31/97; 6,691,718 shares at 6/30/96 17,919 17,055
Cumulative translation adjustment 96 79
Retained earnings 23,174 18,031
------- -------
41,189 35,165
Less treasury stock, at cost-384,440 shares at
3/31/97 and 6/30/96. 762 762
------- -------
40,427 34,403
------- -------
$49,234 $44,169
------- -------
</TABLE>
[FN]
- -See notes to condensed consolidated financial statements.
3
II-VI Incorporated and Subsidiaries
Condensed Consolidated Statements of Earnings (Unaudited)
($000 except per share data)
<TABLE>
<CAPTION>
Three Months Ended
March 31
1997 1996
-------- --------
<S> <C> <C>
Revenues
Net Sales:
Domestic $ 7,047 $ 5,421
International 6,072 4,233
-------- --------
13,119 9,654
Contract research and development 532 418
-------- --------
13,651 10,072
-------- --------
Costs, Expenses & Other Income
Cost of goods sold 7,287 5,481
Contract research and development 404 284
Internal research and development 312 154
Selling, general and administrative 3,210 2,610
Other income-net (52) (83)
-------- --------
11,161 8,446
-------- --------
Earnings Before Income Taxes 2,490 1,626
Income Tax Expense 722 417
-------- --------
Net Earnings $ 1,768 $ 1,209
-------- --------
Earnings Per Share $ 0.27 $ 0.18
-------- --------
</TABLE>
[FN]
- -See notes to condensed consolidated financial statements.
4
II-VI Incorporated and Subsidiaries
Condensed Consolidated Statements of Earnings (Unaudited)
($000 except per share data)
<TABLE>
<CAPTION>
Nine Months Ended
March 31
1997 1996
-------- --------
<S> <C> <C>
Revenues
Net Sales:
Domestic $ 20,350 $ 13,734
International 15,876 11,595
-------- --------
36,226 25,329
Contract research and development 1,725 785
-------- --------
37,951 26,114
-------- --------
Costs, Expenses & Other Income
Cost of goods sold 19,899 14,512
Contract research and development 1,267 548
Internal research and development 696 440
Selling, general and administrative 9,191 6,893
Other income-net (345) (206)
-------- --------
30,708 22,187
-------- --------
Earnings Before Income Taxes 7,243 3,927
Income Tax Expense 2,100 1,078
-------- --------
Net Earnings $ 5,143 $ 2,849
-------- --------
Earnings Per Share $ 0.78 $ 0.47
-------- --------
</TABLE>
[FN]
- -See notes to condensed consolidated financial statements.
5
II-VI Incorporated and Subsidiaries
Condensed Consolidated Statement of Shareholders' Equity (Unaudited)
(000)
<TABLE>
<CAPTION>
Common Stock Cumulative Treasury Stock
--------------- Translation Retained ----------------
Shares Amount Adjustment Earnings Shares Amount Total
------ ------- ----------- -------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance--July 1, 1996 6,692 $17,055 $ 79 $ 18,031 (384) $ (762) $34,403
Shares issued under stock option plan 29 66 - - - - 66
Net earnings for the quarter - - - 1,660 - - 1,660
Translation adjustment - - 2 - - - 2
------ ------- ----------- -------- ------- -------- -------
Balance--September 30, 1996 6,721 17,121 81 19,691 (384) (762) 36,131
------ ------- ----------- -------- ------- -------- -------
Shares issued under stock option plan 30 63 - - - - 63
Net earnings for the quarter - - - 1,715 - - 1,715
Translation adjustment - - 7 - - - 7
Tax benefit for options exercised - 296 - - - - 296
------ ------- ----------- -------- ------- -------- -------
Balance--December 31, 1996 6,751 17,480 88 21,406 (384) (762) 38,212
------ ------- ----------- -------- ------- -------- -------
Shares issued under stock option plan 27 114 - - - - 114
Net earnings for the quarter - - - 1,768 - - 1,768
Translation adjustment - - 8 - - - 8
Tax benefit for options exercised - 325 - - - - 325
------ ------- ----------- -------- ------- -------- -------
Balance--March 31, 1997 6,778 $17,919 $ 96 $ 23,174 (384) $ (762) $40,427
------ ------- ----------- -------- ------- -------- -------
</TABLE>
[FN]
-See notes to condensed consolidated financial statements.
6
II-VI Incorporated and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
($000)
<TABLE>
<CAPTION>
Nine Months Ended
March 31,
1997 1996
------- -------
<S> <C> <C>
Cash Flows from Operating Activities
Net earnings $ 5,143 $ 2,849
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation and amortization 2,486 1,801
Gain on foreign currency transactions (286) (4)
Deferred income taxes (67) (16)
Increase (decrease) in cash from changes in:
Accounts receivable (1,100) (1,471)
Inventories (1,923) (910)
Accounts payable 331 353
Accrued salaries, wages and bonuses (222) (277)
Accrued profit sharing contribution (18) 21
Income taxes payable (48) (344)
Other operating net assets 4 (483)
------- -------
Net cash provided by operating activities 4,300 1,519
------- -------
Cash Flows from Investing Activities
Additions to property & equipment (5,318) (5,194)
Payment for purchase of Lightning Optical,
net of cash acquired - (1,989)
Additions to other assets 54 -
------- -------
Net cash used in investing activities (5,264) (7,183)
------- -------
Cash Flows from Financing Activities
Net change in notes payable - (519)
Payments on short-term borrowings (583) -
Proceeds from long-term borrowings 741 -
Payments on long-term borrowings (37) (396)
Proceeds from sale of common stock 243 10,990
------- -------
Net cash provided by financing activities 364 10,075
------- -------
Net (Decrease) Increase in Cash and Equivalents (600) 4,411
Cash and Equivalents at Beginning of Period 9,417 3,822
------- -------
Cash and Equivalents at End of Period $ 8,817 $ 8,233
------- -------
</TABLE>
[FN]
- -See notes to condensed consolidated financial statements.
7
II-VI Incorporated and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
Note A - Basis of Presentation
---------------------
The condensed consolidated financial statements for the three and
nine month periods ended March 31, 1997 and 1996 are unaudited.
In the opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation for
the periods presented have been included. These interim statements
should be read in conjunction with the audited consolidated
financial statements and notes thereto contained in the Company's
Annual Report as filed as an exhibit to the Company's 1996 Annual
Report to the shareholders. The consolidated results of operations
for the three and nine month periods ended March 31, 1997 and 1996
are not necessarily indicative of the results to be expected for the
full year.
Note B - Inventories ($000)
-------------------
The components of inventories are as follows:
March 31 June 30
1997 1996
-------- -------
Raw Materials $ 2,712 $ 2,279
Work in Progress 2,065 1,427
Finished Goods 2,504 1,784
-------- -------
$ 7,281 $ 5,490
-------- -------
Note C - Property, Plant and Equipment ($000)
-----------------------------------
Property, plant and equipment consist of the following:
March 31 June 30
1997 1996
-------- -------
Land and land improvements $ 555 $ 539
Buildings and improvements 7,643 6,952
Machinery and equipment 26,695 22,084
------- -------
34,893 29,575
Less accumulated depreciation 16,727 14,490
------- -------
$18,166 $15,085
------- -------
8
II-VI Incorporated and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Unaudited)
Continued
Note D - Debt
----
In September of 1996, the Company secured a $741,000 low interest
rate loan from the Pennsylvania Industrial Development Authority to
finance a portion of a facility expansion. The terms of the loan
call for equal monthly payments over a fifteen year period, including
interest at three percent.
Note E - New Accounting Standard
-----------------------
In February 1997, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards ("SFAS") No. 128,
"Earnings per Share," which establishes standards for computing and
presenting earnings per share and applies to entities with publicly
held common stock or potential common stock. This Statement is
effective for financial statements issued for periods ending after
December 15, 1997, including interim periods; earlier application is
not permitted. This Statement requires restatement of all prior-
period earnings per share data presented. The basic earnings per
share as defined by SFAS No. 128 for net earnings for the three and
nine month periods ended March 31, 1997 would have been $.28 and
$.81, respectively, and the three and nine month periods ended
March 31, 1996 would have been $.20 and $.50, respectively. The
diluted earnings per share as defined by SFAS No. 128 approximates
the historically presented earnings per share.
9
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Results of Operations
- ---------------------
Net earnings for the third fiscal quarter ended March 31, 1997,
were $1,768,000 ($0.27 per share) on revenues of $13,651,000.
This compares to net earnings of $1,209,000 ($0.18 per share) on
revenues of $10,072,000 in the third fiscal quarter of 1996. For
the nine months ended March 31, 1997, net earnings were $5,143,000
($0.78 per share) on revenues of $37,951,000. This compares with
net earnings of $2,849,000 ($0.47 per share) on revenues of
$26,114,000 for the same period last fiscal year. The increased
earnings for the quarter and year-to-date were driven by the improved
revenue volume.
Order bookings for the third quarter of fiscal 1997 were $13,595,000
compared to $11,288,000 for the same period last fiscal year, a 20%
increase. Year-to-date order bookings grew by 35% to $40,416,000 from
$29,857,000 last fiscal year. These increases are primarily in the
commercial order area as contract research and development orders
decreased $1,900,000 for the quarter and $550,000 year-to-date mostly
due to the large DARPA R&D contract award in the third quarter of
fiscal 1996. For the quarter, nearly 70% of the commercial order
increase was in infrared optics and materials, 20% was attributable
to the Company's VLOC operation, and the remainder of the increase
was in the eV PRODUCTS division. Year-to-date, approximately 50% of
the commercial order increase was attributable to the Company's VLOC
operation, 45% to improved orders for infrared optics and materials
and the remainder to increased orders of the eV PRODUCTS division.
Manufacturing revenues for the third quarter were $13,119,000
compared to $9,654,000 for the same period last fiscal year, a 36%
increase. Year-to-date manufacturing revenues grew by 43% to
$36,266,000 from $25,329,000 last fiscal year. These increases are
the result of improved shipments in all of the markets served by the
Company. The Company's VLOC operation contributed approximately one-
half of the quarter and year-to-date improvements.
Manufacturing gross margin for the quarter was $5,832,000 or 44% of
revenues compared to $4,173,000 or 43% of revenues for the third
quarter of fiscal 1996. Manufacturing gross margin year-to-date was
$16,327,000 or 45% of revenues compared to $10,817,000 or 43% of
revenues in fiscal 1996. Both the quarter and year-to-date increases
in gross margin as a percent of revenues reflect lower per unit
operating costs associated with increased volume and efficiency
improvements, which are partially offset by the strengthening of the
U.S. dollar against the Japanese yen and increased pricing pressure
in the infrared laser optics market.
Selling, general and administrative expenses for the quarter were
$3,210,000 or 24% of revenues compared to $2,610,000 or 26% of
revenues for last fiscal year's third quarter. Selling, general
and administrative expenses year-to-date were $9,191,000 or 24% of
revenues compared to $6,893,000 or 26% of revenues in fiscal 1996.
The increases in expenses are attributable to additional expenses
in the VLOC operation, higher compensation expense associated with
the Company's world-wide profit driven bonus programs and higher
general and administrative expenses needed to support the Company's
growth.
Other income for the quarter was $52,000 compared to $83,000 for
last fiscal year's third quarter. Other income year-to-date was
$345,000 compared to $206,000 in fiscal 1996. The year-to-date
increase is primarily due to foreign currency gains.
10
The Company's year-to-date effective income tax rate was 29% of pre-
tax earnings compared to 27% for the first nine months of fiscal 1996.
The increase in the rate is primarily due to the mix between foreign
and domestic earnings.
Liquidity and Capital Resources
- -------------------------------
Cash decreased during the first nine months of fiscal 1997 by
$600,000 primarily from $5,318,000 of capital expenditures and
$538,000 of payments on borrowings, offset by cash generated from
operations of $4,300,000 and $741,000 of financing from a low
interest rate loan with the Pennsylvania Industrial Development
authority.
The capital expenditures focused on improved capacity, facility
upgrades and the start up of the Company's operation in China.
The Company generated $4,300,000 in cash from operations for the
first nine months of fiscal 1997. The $7,629,000 in cash generated
from net earnings before depreciation and amortization was offset by
increases in inventories and accounts receivable needed to support
the growth in sales volume.
The current cash balance will be used for working capital needs,
further capital expenditures and possible acquisitions of
complementary businesses, products or technologies.
In February 1997, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards ("SFAS") No. 128,
"Earnings per Share," which establishes standards for computing and
presenting earnings per share and applies to entities with publicly
held common stock or potential common stock. This Statement is
effective for financial statements issued for periods ending after
December 15, 1997, including interim periods; earlier application is
not permitted. This Statement requires restatement of all prior-
period earnings per share data presented. The basic earnings per
share as defined by SFAS No. 128 for net earnings for the three and
nine month periods ended March 31, 1997 would have been $.28 and
$.81, respectively, and the three and nine month periods ended
March 31, 1996 would have been $.20 and $.50, respectively. The
diluted earnings per share as defined by SFAS No. 128 approximates
the historically presented earnings per share.
There are certain risk factors that could affect the Company's
business, results of operations or financial condition. Investors
are encouraged to review the risk factors set forth in the Company's
Form 10-K filed on September 24, 1996.
11
PART II - OTHER INFORMATION
---------------------------
Item 6. EXHIBITS AND REPORTS ON FORM 8-K.
--------------------------------
(a) Exhibits.
--------
27.01 Financial Data Schedule . . . . Filed herewith.
99.01 Press release
dated April 16, 1997. . . . . . Filed herewith.
(b) Reports on Form 8-K.
-------------------
On February 12, 1997, the registrant filed a
report on Form 8-K for the events dated February 10, 1997,
covering Items 4 and 7 thereof.
12
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.
II-VI INCORPORATED
(Registrant)
Date: May 15, 1997 By: /s/ Carl J. Johnson
------------------------------------
Carl J. Johnson
Chairman and Chief Executive Officer
Date: May 15, 1997 By: /s/ James Martinelli
------------------------------------
James Martinelli
Treasurer & Chief Financial Officer
EXHIBIT INDEX
-------------
Exhibit No.
----------
27.01 Financial Data Schedule. . . . . . . . . Filed herewith.
99.01 Press release dated April 16, 1997 . . . Filed herewith.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-START> JUL-01-1996
<PERIOD-END> MAR-31-1997
<CASH> 8,817
<SECURITIES> 0
<RECEIVABLES> 10,032
<ALLOWANCES> 275
<INVENTORY> 7,281
<CURRENT-ASSETS> 26,942
<PP&E> 34,893
<DEPRECIATION> 16,727
<TOTAL-ASSETS> 49,234
<CURRENT-LIABILITIES> 6,421
<BONDS> 700
0
0
<COMMON> 17,919
<OTHER-SE> 23,270
<TOTAL-LIABILITY-AND-EQUITY> 49,234
<SALES> 37,951
<TOTAL-REVENUES> 37,951
<CGS> 21,166
<TOTAL-COSTS> 21,166
<OTHER-EXPENSES> 9,542
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 7,243
<INCOME-TAX> 2,100
<INCOME-CONTINUING> 5,143
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,143
<EPS-PRIMARY> .78
<EPS-DILUTED> .00
</TABLE>
April 16, 1997
Jim Martinelli
Treasurer & Chief
Financial Officer
(412) 352-4455
II-VI INCORPORATED ANNOUNCES RECORD THIRD QUARTER RESULTS
PITTSBURGH, PA., April 16, 1997--II-VI Incorporated (NASDAQ
NMS: IIVI) today reported results for its third fiscal
quarter ended March 31, 1997. Net earnings for the period
were $1,768,000 ($0.27 per share) on revenues of $13,651,000.
These results compare with net earnings of $1,209,000 ($0.18
per share) on revenues of $10,072,000 in the third quarter of
last fiscal year. For the nine months ended March 31, 1997,
net earnings were $5,143,000 ($0.78 per share) on revenues of
$37,951,000. This compares with net earnings of $2,849,000
($0.47 per share) on revenues of $26,114,000 for the same
period last fiscal year.
Manufacturing bookings for the quarter increased 48% to
$13,195,000 from $8,897,000 for the same period last year.
Manufacturing bookings year-to-date increased 42% to
$37,766,000 from $26,656,000 in last fiscal year. Nearly 70%
of the increase for the quarter was attributable to infrared
optics and materials, while 20% related to the Company's VLOC
operation and the eV PRODUCTS division accounted for the
remainder. Approximately 50% of the year-to-date increase
was attributable to VLOC manufacturing orders, 45% to
increased orders for infrared optics and materials and the
remaining increase for orders of the eV PRODUCTS division.
Manufacturing revenues for the quarter increased 36% to
$13,119,000 from $9,654,000 for the same period last year.
Manufacturing revenues year-to-date increased 43% to
$36,226,000 from $25,329,000 for the same period last year.
For the quarter, one-half of the increase reflects higher
shipments of infrared optics and materials, and the remaining
increase is primarily attributable to increased shipments from
the VLOC operation. Year-to-date, 50% of the increase is
attributable to the VLOC operation, infrared optics and
materials accounted for 40%, and eV PRODUCTS division
accounted for the remaining 10%.
Manufacturing gross margin for the quarter was $5,832,000 or
44% of net sales compared to $4,173,000 or 43% of net sales
for the same period last year. Manufacturing gross margin
year-to-date was $16,327,000 or 45% of net sales compared to
$10,817,000 or 43% of net sales in fiscal 1996. The quarter
and year-to-date increases reflect the lower per unit
operating cost associated with the higher production volume
and improved manufacturing efficiencies offset by the
strengthening of the U.S. dollar against the Japanese yen
and increased pricing pressure in the infrared laser optics
market.
Selling, general and administrative expenses for the quarter
were $3,210,000 or 24% of revenues compared to $2,610,000 or
26% of revenues for the same period last year. Selling,
general and administrative expenses year-to-date were
$9,191,000 or 24% of revenues compared to $6,893,000 or 26%
of revenues in fiscal 1996. The expense increase is
attributable to higher compensation expense associated with
the Company's worldwide profit-driven bonus programs, higher
general and administrative expenses needed to support the
Company's growth and increased expenses of the VLOC
operation.
Francis J. Kramer, president and chief operating officer
said, "As reflected in the record revenue achieved this past
quarter, market demand for all our products continues to grow
rapidly. In our infrared optics and materials operation
we've invested in the manufacturing capacity to meet this
demand and maintain our leadership position. The VLOC
operation has also made significant progress expanding
manufacturing capacity over the past year. Our eV PRODUCTS
division continues to grow rapidly by addressing new
applications, customer technical concerns, and marketing
challenges. At every II-VI location, our focus on quality,
service and cost, in addition to expanding capacity, is aimed
at enhancing the leadership positions in the markets we
serve."
Headquartered in Saxonburg, Pennsylvania II-VI Incorporated
designs, manufactures and markets optical and electro-optical
components, devices and materials for precision use in
infrared, near infrared, visible light and x-ray instruments
and applications. The Company's infrared products are used
in high-power CO2 (carbon dioxide) lasers for industrial
processing worldwide. The Company's VLOC subsidiary
manufactures near infrared and visible light products used in
industrial, scientific and medical instruments and solid-
state (such as YAG and YLF) lasers. II-VI is also developing
and marketing solid-state x-ray and gamma-ray products for
the nuclear radiation detection industry through its eV
PRODUCTS division.
II-VI Incorporated and Subsidiaries
Condensed Consolidated Statements of Earnings (Unaudited)
($000 except per share data)
Three Months Ended
March 31,
1997 1996
Revenues
Net sales 13,119 9,654
Contract research and development 532 418
13,651 10,072
Costs, Expenses & Other Income
Cost of goods sold 7,287 5,481
Contract research and development 404 284
Internal research and development 312 154
Selling, general and administrative 3,210 2,610
Other income - net (52) (83)
11,161 8,446
Earnings Before Income Taxes 2,490 1,626
Income Tax Expense 722 417
Net Earnings $ 1,768 $ 1,209
Earnings Per Share $ 0.27 $ 0.18
Average Shares Outstanding 6,670 6,542
II-VI Incorporated and Subsidiaries
Condensed Consolidated Statements of Earnings (Unaudited)
($000 except per share data)
Nine Months Ended
March 31,
1997 1996
Revenues
Net sales 36,226 25,329
Contract research and development 1,725 785
37,951 26,114
Costs, Expenses & Other Income
Cost of goods sold 19,899 14,512
Contract research and development 1,267 548
Internal research and development 696 440
Selling, general and administrative 9,191 6,893
Other income - net (345) (206)
30,708 22,187
Earnings Before Income Taxes 7,243 3,927
Income Tax Expense 2,100 1,078
Net Earnings $ 5,143 $ 2,849
Earnings Per Share $ 0.78 $ 0.47
Average Shares Outstanding 6,616 6,095
II-VI Incorporated and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
($000)
March 31, June 30,
1997 1996
Assets
Current Assets
Cash and cash equivalents $ 8,817 $ 9,417
Accounts receivable,net 9,757 8,712
Inventories 7,281 5,490
Other current assets 1,087 1,036
Total Current Assets 26,942 24,655
Property, Plant & Equipment, net 18,166 15,085
Other Assets 4,126 4,429
49,234 44,169
Liabilities and Shareholders' Equity
Current Liabilities
Notes payable $ 685 $ 1,393
Accounts payable 1,377 1,260
Other current liabilities 4,360 5,315
Total Current Liabilities 6,422 7,968
Long-Term Debt--less current portion 700 45
Deferred Income Taxes 1,686 1,753
Shareholder's Equity 40,426 34,403
$ 49,234 $ 44,169
