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
[ ] 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 February 5, 1995
ADM TRONICS UNLIMITED, INC.
INDEX
Part I. Financial Information Page Number
Item 1. Consolidated Financial Statements:
Consolidated Balance Sheets - December 31, 1995 and
March 31, 1995 2
Consolidated Statements of Operations - For The Three
Months Ended December 31, 1995 and 1994 3
Consolidated Statements of Operations - For The Nine
Months Ended December 31, 1995 and 1994 3
Consolidated Statement of Changes in Stockholders'
Equity - For The Nine Months Ended December 31, 1995 4
Consolidated Statements of Cash Flows - For The Nine
Months Ended December 31, 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
December 31, March 31,
1995 1995
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash $ 591,853 286,546
Certificates of Deposit 399,140 101,361
Securities held to maturity 250,797 250,797
Accounts receivable--trade less allowance
for doubtful accounts of $20,500 442,788 358,804
Inventories:
Raw materials and supplies 133,108 127,951
Finished goods--chemicals 56,300 63,030
Current portion of note receivable 54,191 59,216
Other current assets 158,998 165,993
Total Current Assets 2,087,175 1,413,698
Property and Equipment 57,119 80,964
Equipment held for sale or lease, net of
accumulated depreciation of $49,245 and
$48,184, respectively 485,936 277,945
Notes Receivable 28,117 310,377
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 254,871 214,116
Total Assets $ 3,032,470 $2,416,352
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable--trade 233,330 139,408
Accrued expenses and other 22,436 36,386
Customer deposits 158,039 -
Total Current Liabilities 413,805 175,794
Deferred Sales Revenue 65,860 65,860
Other Long Term Liabilities 422 2,319
Stockholders' Equity 2,552,383 2,172,379
Total Liabilities & Stockholders' Equity $3,032,470 $2,416,352
See accompanying notes to consolidated financial statements
2
ADM TRONICS UNLIMITED, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
December 31, December 31,
1995 1994 1995 1994
Revenues:
Net sales $ 368,543 $ 398,868 $ 1,487,681 $1,111,640
Costs And Expenses:
Cost of sales 101,654 100,970 512,310 382,858
Selling, general and 172,346 201,209 658,971 618,487
administrative
Total cost and expenses 274,000 302,179 1,171,281 1,001,345
Operating Income (Loss) $ 94,543 $96,689 316,400 $110,295
Other Income:
Interest and other income 21,524 14,462 64,481 33,563
Interest expense (118) - (1,486) -
Gain (loss) on sale of
US Treasury Bond 609 - 609 (1,336)
Total Other Income (expense) 22,015 14,462 63,604 32,227
Income (loss) before minority
interest $ 116,558 $111,151 $ 380,004 $142,522
Net Income (loss) $ 116,558 $111,151 $ 380,004 $142,522
Net Income (loss) per 0.003 0.003 0.009 0.003
common share
See accompanying notes to consolidated financial statements.
3
ADMTRONICS UNLIMITED, INC.
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE NINE MONTHS ENDED DECEMBER 31, 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
nine months ended
December 31,1995 380,004 380,004
Balance
December 31,1995 42,474,907 21,237 4,819,436 (2,288,290) 2,552,383
See accompanying notes to consolidated financial statements
4
ADM TRONICS UNLIMITED, INC.
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
Nine Months Ended December 31,
1995 1994
Cash Flows From Operating Activities:
Net income $ 380,004 $ 142,522
Adjustments to reconcile net income (loss)
to net cash flows from operating activities:
Depreciation and amortization 28,243 28,632
Sale of US Treasury Bond (609) 1,336
Changes in operating assets and liabilities:
Accounts receivable--trade (83,984) (220,488)
Inventories 1,573 15,340
Other current assets 6,995 (32,597)
Other assets (35,730) (81,228)
Equipment held for sale or lease (209,052) (8,917)
Accounts payable--trade 93,922 75,541
Customer deposits payable 158,039 -
Accrued expenses and other (13,950) (5,234)
Total Adjustments (54,553) (227,615)
Net cash flows provided by (used in)
operating activities 320,426 (85,093)
Cash Flows From Investing Activities:
Purchase of property and equipment (3,337) (10,811)
Principal payments on notes receivable 282,260 20,000
Decrease in investment securities 609 913
Net changes in certificates of deposit (297,779) (2,578)
Net cash flows provided by (used in)
investing activities (18,247) 7,524
Cash Flows From Financing Activities:
Repayments of notes and leases payable (1,897) (2,110)
Loans to Officers - (5,000)
Net cash flows provided by financing
activities (1,897) (7,110)
Net change in cash and cash equivalents 305,307 (84,679)
Cash--Beginning of year 286,546 281,817
Cash--End of period $ 591,853 $ 197,138
Supplemental cash flow information:
Interest paid $ 1,486 -
Income taxes paid $ 2,866 $ 400
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 December 31, 1995 the Company had cash, certificates of deposit and
investment securities of $1,241,790 as compared to $638,704 at March 31,
1995. This increase was principally due to collection of a note recievable
and cash flows from operating activities.
Operating Activities
Net cash flows have increased $405,519 to $320,426 for the nine months ended
December 31, 1995 as compared to net cash outflows of $85,083 for the nine
months ended December 31, 1994. This increase was the result of improved
operating results from sales and receipts of customer deposits.
Investing Activities
Capital expenditures consisted of $3,337 for the purchase of property and
equipment offset by $282,260 received from principal payments on notes
receivable. Certificate of deposit were increased by $297,779.
Financing Activities
The Company repaid notes and leases payable in the amouont of $1,897.
The Company does not have any material external sources of liquidity or
unused sources of funds.
6
Results of Operations
Quarter Ended December 31, 1995
Revenues
Revenues were $368,543 in 1995 as compared to $398,868 in 1994 representing
a decrease of $30,325 or 8%. Revenues from the Company's Sonotron medical
activities decreased by $58,614 offset by an increase in chemical revenues
of $28,289.
Gross Profit
Gross profit of $266,884 in 1995 was $31,009, or 10%, below the gross profit
in 1994. Gross profit was 72% of revenues in 1995 as compared with 75% of
revenues in 1994.
Operating Income
Operating income of $94,543 in 1995 was $2,146 or 2% below the operating
income of $96,689 in 1994. Selling general and administrative expenses
decreased by $28,863.
Other Income
Other income of $22,015 in 1995 increased $7,553, or 52%, from $14,462 in 1994,
principally due to an increase in interest income from increased amounts
invested.
Results of Operations
Nine Months Ended December 31, 1995
Revenues
Revenues were $1,487,681 in 1995 as compared to 1,111,640 in 1994 representing
an increase of $376,041 or 34%. Revenues from the Company's Sonotron medical
activities increased by $268,874 and chemical revenues increased by $107,167.
Gross Profit
Gross profit of $975,371 in 1995 was $246,589, or 34% above the gross profit
in 1994. Gross profit was 66% of revenues in 1995 as compared with 66% of
revenues in 1994.
Operating Income
Operating income of $316,400 in 1995 was $206,105, or a 187% increase from
the operating income of $110,295 in 1994. Selling, general and
administrative expenses increased by $40,484.
Other Income
Other income of $63,604 in 1995 increased $31,377 from $32,227 in 1994,
due to an increase in interest income from increased amounts invested.
7
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
February 12, 1996
