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
[ ] TRANSACTION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______ to ______
Commission File No. 0-17629
ADM TRONICS UNLIMITED, INC.
(Exact name of registrant as specified in its Charter)
Delaware 22-1896032
(State or Other Jurisd- (I.R.S. Employer Identifi-
iction of Incorporation cation Number)
or organization)
224-S Pegasus Avenue, Northvale, New Jersey 07647
(Address of Principal Executive Offices)
Registrant's Telephone Number, including
Area Code: (201) 767-6040
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
the filing requirements for at least the past 90 days:
YES X NO______
Indicate the number of shares outstanding of each of the Registrant's
classes of common stock, as of the latest practicable date:
42,474,907 shares of Common Stock, $.0005 par value,
as of November 7, 1995
ADM TRONICS UNLIMITED, INC.
INDEX
Part I. Financial Information Page Number
Item 1. Consolidated Financial Statements:
Consolidated Balance Sheets - September 30, 1995 and
March 31, 1995 2
Consolidated Statements of Operations - For The Three
Months Ended September 30, 1995 and 1994 3
Consolidated Statements of Operations - For The Six
Months Ended September 30, 1995 and 1994 3
Consolidated Statements of Changes in Stockholders'
Equity - For The Six Months Ended September 30, 1995 4
Consolidated Statements of Cash Flows - For The Six
Months Ended September 30, 1995 and 1994 5
Notes To Consolidated Financial Statements 6
Item 2. Management's Discussion And Analysis of Financial
Condition and Results of Operations 6
1
ADM TRONICS UNLIMITED, INC.
CONSOLIDATED BALANCE SHEETS
September 30, March 31,
1995 1995
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash $ 737,299 286,546
Certificates of Deposit 103,104 101,361
Securities held to maturity 250,797 250,797
Accounts receivable--trade less allowance
for doubtful accounts of $20,500 401,282 358,804
Inventories:
Raw materials and supplies 118,011 127,951
Finished goods--chemicals 54,199 63,030
Current portion of note receivable 51,902 59,216
Other current assets 191,838 165,993
Total Current Assets 1,908,432 1,413,698
Property and Equipment 65,538 80,964
Equipment held for sale or lease, net of
accumulated depreciation of $48,892 and
$48,184, respectively 264,308 277,945
Notes Receivable 288,923 310,377
Equity securities available for sale 41,000 41,000
Loan receivable from officers, bearing
interest at 3% per annum 78,252 78,252
Other Assets 237,859 214,116
Total Assets $ 2,884,312 $2,416,352
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable--trade 196,586 139,408
Accrued expenses and other 26,948 36,386
Customer deposits 158,039 -
Total Current Liabilities 381,573 175,794
Deferred Sales Revenue 65,860 65,860
Other Long Term Liabilities 1,054 2,319
Stockholders' Equity 2,435,825 2,172,379
Total Liabilities & Stockholders' Equity $2,884,312 $2,416,352
See accompanying notes to consolidated financial statements
2
ADM TRONICS UNLIMITED, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
September 30, September 30,
1995 1994 1995 1994
Revenues:
Net sales $ 588,124 $ 282,565 $ 1,119,138 $ 712,772
Costs And Expenses:
Cost of sales 248,551 161,818 410,656 281,888
Selling, general and 168,891 214,883 486,625 418,250
administrative
Total cost and expenses 417,442 376,701 897,281 700,138
Operating Income (Loss) $ 170,682 ($94,136) 221,857 $12,634
Other Income:
Interest and other income 20,720 7,699 41,589 17,765
Total Other Income 20,720 7,699 41,589 17,765
Net Income (loss) $ 191,402 ($86,437) $ 263,446 $ 30,399
Net Income (loss) per 0.005 (0.002) 0.006 0.001
common share
See accompanying notes to consolidated financial statements.
3
ADMTRONICS UNLIMITED, INC.
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1995
(Unaudited)
Common Capital In
Stock Par Excess Of Accumulated
Shares Value Par Value Deficit Total
Balance,
March 31, 1995 42,474,907 21,237 4,819,436 (2,668,294) 2,172,379
Net income six
months ended
September 30,1995 263,446 263,446
Balance
September 30,1995 42,474,907 21,237 4,819,436 (2,404,848) 2,435,825
See accompanying notes to consolidated financial statements
4
ADM TRONICS UNLIMITED, INC.
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
Six Months Ended September 30,
1995 1994
Cash Flows From Operating Activities:
Net income $ 263,446 $ 30,399
Adjustments to reconcile net income (loss)
to net cash flows from operating activities:
Depreciation and amortization 18,005 20,771
Changes in operating assets and liabilities:
Accounts receivable--trade (42,478) 19,749
Inventories 18,771 (16,201)
Other current assets (25,845) (33,938)
Other assets (23,743) (65,253)
Equipment held for sale or lease 13,637 80,426
Accounts payable--trade 57,178 18,425
Customer deposits payable 158,039 -
Accrued expenses and other (9,438) (6,194)
Total Adjustments 164,126 17,785
Net cash flows provided by (used in)
operating activities 427,572 48,184
Cash Flows From Investing Activities:
Purchase of property and equipment (2,579) (3,721)
Principal payments on notes receivable 28,768 12,500
Net changes in certificates of deposit (1,743) (99,634)
Net cash flows provided by (used in)
investing activities 24,446 (95,855)
Loans to Officers (5,000)
Cash Flows From Financing Activities:
Repayments of notes and leases payable (1,265) (1,476)
Net cash flows provided by financing
activities (1,265) (6,476)
Net change in cash and cash equivalents 450,753 (49,147)
Cash--Beginning of year 286,546 281,817
Cash--End of period $ 737,299 $ 232,670
Income taxes paid $ 400 $ 225
See accompanying notes to consolidated financial statements.
5
ADM TRONICS UNLIMITED, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1 - Basis of Presentation:
The consolidated balance sheet at the end of the preceding fiscal year has
been derived from the audited consolidated balance sheet contained in the
Company's annual report on Form 10-KSB for the fiscal year ended March 31,
1995 (the "Form 10-KSB") and is presented for comparative purposes. All
other financial statements are unaudited. In the opinion of management, all
adjustments which include only normal recurring adjustments necessary to
present fairly the financial position, results of operations and changes in
financial positions for all periods presented have been made. The results of
operations for interim periods are not necessarily indicative of the operating
results for the full year.
Footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been omitted in
accordance with the published rules and regulations of the Securities and
Exchange Commission. These consolidated financial statements should be read in
conjunction with the financial statements and notes thereto included in the
Form 10-KSB.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Liquidity and Capital Resources
At September 30, 1995 the Company had cash, cash equivalents, certificates
of deposit and of $840,403 as compared to $387,907 at March 31,1995. This
increase was the result of net cash flows from operating activities.
Operating Activities
Net cash flows have increased $379,388 to $427,572 for the six months ended
September 30, 1995 as compared to net cash flows of $48,184 for the six months
ended September 30, 1994. This increase was the result of improved operating
results from sales of the Company's Sonotron medical products during the period
and increased sales of the Company's chemical products.
Investing Activities
Capital expenditures consisted of $2,579 for the purchase of property and
equipment offset by $28,768 received from principal payments on notes
receivable.
Financing Activities
The Company repaid notes and leases payable of $1,265.
The Company does not have any material external sources of liquidity or
unused sources of funds.
6
Results of Operations
Quarter Ended September 30, 1995
Revenues
Revenues were $588,124 in 1995 as compared to $282,565 in 1994 representing
an increase of $305,559 or 108%. Revenues from the Company's Sonotron medical
activities increased by $267,562 coupled with an increase in chemical revenues
of $37,997.
Gross Profit
Gross profit of $339,573 in 1995 was $218,826, or 181%, above the gross profit
in 1994. Gross profit was 58% of revenues in 1995 as compared with 43% of
revenues in 1994. The difference in gross profit was the result of the product
mix of sales of those products with a higher gross profit margin.
Operating Income (Loss)
Operating income in 1995 was $170,682 compared to an operating loss of $94,136
in 1994. Selling general and administrative expenses decreased by $45,992 due
to reduced administrative costs.
Other Income (Loss)
Other income of $20,720 in 1995 increased $13,021 from $7,699 in 1994,
principally due to an increase in interest income.
Results of Operations
Six Months Ended September 30, 1995
Revenues
Revenues were $1,119,138 in 1995 as compared to 712,772 in 1994 representing
an increase of 406,366 or 57%. Revenues from the Company's Sonotron medical
product increased by $327,488 and chemical revenues increased $78,878.
Gross Profit
Gross profit of $708,482 in 1995 was $277,598, or 64% above the gross profit
in 1994. Gross profit was 63% of revenues in 1995 as compared with 60% of
revenues in 1994. The difference in the percentage of the gross profit is
the result of the product mix of sales of those products with a higher gross
profit margin.
Operating Income (Loss)
Operating income was $221,857 in 1995 compared to an operating income of
$12,634 in 1994. Selling, general and administrative expenses increased by
$68,375 due to increased legal and administrative costs.
Other Income (Loss)
Other income of $41,589 in 1995 increased $23,824 from $17,765 in 1994,
principally due to an increase in interest income from increased amounts
invested.
SIGNATURES
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.
ADM Tronics Unlimited, Inc.
By:\s\Alfonso DiMino
Dr. Alfonso DiMino
President
And By:\s\Andre' DiMino
Andre' DiMino
Principal Financial Officer
Dated: Northvale, New Jersey
November 7, 1995
