<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarter ended Commission
March 31, 1996 File Number 0-8241
- --------------------- -----------------------
Barringer Laboratories, Inc.
- ------------------------------------------------------------------
(Name of small business issuer in its charter)
Delaware 84-0951626
- ----------------------------- -----------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
15000 West 6th Avenue, Suite 300, Golden, Colorado 80401-5047
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(Address of principal executive office)
Issuer's telephone number, including area code (303) 277-1687
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Note: Please address financial or S.E.C. compliance queries to:
Chief Financial Officer, 15000 West 6th Avenue, Suite 300, Golden,
Colorado 80401-5047.
Indicate by check mark 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 issuer was required to file such reports),
and (2) has been subject to such filing requirements for the past
90 days.
Yes X No
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Number of shares outstanding as of March 31, 1996 - 1,652,016 of
Common Stock, $.01 par value.
1
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BARRINGER LABORATORIES, INC.
INDEX
Part I - Financial Information
- Consolidated Balance Sheets as of March 31, 1996
(Unaudited) and December 31, 1995;
- Consolidated Statements of Operations (Unaudited)
for the Three Months Ended March 31, 1996 and 1995;
- Consolidated Statements of Cash Flows (Unaudited)
for the Three Months Ended March 31, 1996 and 1995;
- Notes to Consolidated Financial Statements; and
- Management's Discussion and Analysis of Financial
Condition and Results of Operations
Part II - Other Information
Signatures
2
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BARRINGER LABORATORIES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
MARCH 31, DECEMBER 31,
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1996 1995
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(UNAUDITED)
Assets
Current Assets:
Cash $ 359,000 $ 170,000
Trade receivables, less
allowance of $24,000 and
$21,000 for doubtful accounts 738,000 1,078,000
Due from affiliate 1,000 1,000
Prepaid expenses and other 111,000 113,000
----------- -----------
Total Current Assets 1,209,000 1,362,000
----------- -----------
Property and Equipment:
Machinery and equipment 1,638,000 1,677,000
Machinery and equipment under
capital lease obligations 620,000 472,000
Leasehold improvements 639,000 639,000
Office furniture and equipment 62,000 62,000
----------- -----------
2,959,000 2,850,000
Less accumulated depreciation
and amortization 2,421,000 2,309,000
----------- -----------
Net Property and Equipment 538,000 541,000
Other Assets 50,000 47,000
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Total Assets $1,797,000 $1,950,000
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----------- -----------
See accompanying notes to consolidated financial statements.
3
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BARRINGER LABORATORIES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Concluded)
MARCH 31, DECEMBER 31,
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1996 1995
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(UNAUDITED)
Liabilities and Shareholders' Equity
Current Liabilities:
Line of Credit $ - $ 84,000
Trade accounts payable 266,000 235,000
Accrued liabilities:
Payroll, compensation and
related expenses 188,000 239,000
Other 147,000 203,000
Current maturities of long-term debt 128,000 150,000
----------- ------------
Total Current Liabilities 729,000 911,000
Long-Term Debt, less current maturities 138,000 33,000
----------- ------------
Total Liabilities 867,000 944,000
----------- ------------
Commitments
Shareholders' Equity
Preferred stock, $2.00 par value,
1,000,000 shares authorized; none issued -- --
Common stock, $0.01 par value,
shares authorized, 10,000,000;
issued 2,299,254 and outstanding 1,652,016 23,000 23,000
Additional paid-in capital 3,278,000 3,278,000
Accumulated deficit (1,511,000) (1,425,000)
Translation Adjustment (5,000) (15,000)
----------- ------------
1,785,000 1,861,000
Less common stock in treasury,
at cost, 647,238 shares (855,000) (855,000)
----------- ------------
Total Shareholders' Equity 930,000 1,006,000
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Total Liabilities and Shareholders' Equity $1,797,000 $1,950,000
----------- ------------
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See accompanying notes to consolidated financial statements.
4
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BARRINGER LABORATORIES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED MARCH 31,
-----------------------------
1996 1995
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<S> <C> <C>
Sales of Services $1,296,000 $1,442,000
Cost of Services Sold 1,011,000 1,081,000
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Gross Profit 285,000 361,000
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Selling, general and administrative expenses 362,000 350,000
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Operating Profit (Loss) (77,000) 11,000
Other Income (Expense):
Interest income 3,000 14,000
Interest expense (15,000) (21,000)
Other 3,000 (1,000)
------------ -----------
Total Other Income (Expense) (9,000) (8,000)
------------ -----------
Income (Loss) before Income Taxes (86,000) 3,000
Provision for Income Taxes - -
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Net Income (Loss) for the period $ (86,000) $ 3,000
------------ -----------
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Per Share Data:
Net Income (Loss) per share $ (.05) $ -
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Weighted average common shares outstanding 1,652,016 2,299,254
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</TABLE>
See accompanying notes to consolidated financial statements.
5
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BARRINGER LABORATORIES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
INCREASE (DECREASE) IN CASH
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED MARCH 31,
1996 1995
------------ -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) for the period $ (86,000) $ 3,000
Items not affecting cash
Depreciation and amortization 112,000 136,000
Bad debt expense 3,000 2,000
Other 10,000 (13,000)
Decrease (increase) in operating
assets net of operating liabilities 260,000 (84,000)
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Cash Provided by Operating Activities 299,000 44,000
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CASH FLOWS USED IN INVESTING ACTIVITIES
Purchase of property and equipment (109,000) (46,000)
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CASH FLOWS FROM FINANCING ACTIVITIES
Increase in long term debt 148,000 -
Reduction in long-term debt (65,000) (80,000)
Increase (decrease) in short term borrowings (84,000) 75,000
------------ -----------
Cash Provided by (Used in)
Financing Activities (1,000) (5,000)
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Increase (decrease) in cash 189,000 (7,000)
Cash - beginning of period 170,000 39,000
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Cash - end of period $ 359,000 $ 32,000
------------ -----------
------------ -----------
</TABLE>
See accompanying notes to consolidated financial statements.
6
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BARRINGER LABORATORIES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
INCREASE (DECREASE) IN CASH
(UNAUDITED)
(CONTINUED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED MARCH 31,
-----------------------------
1996 1995
------------ -----------
<S> <C> <C>
Decrease (increase) in
operating assets net of
operating liabilities
Trade receivables $ 337,000 $(108,000)
Due from affiliate - (19,000)
Other current assets (1,000) 19,000
Accounts payable and accrued liabilities (76,000) 14,000
Other - 10,000
------------ -----------
Total - net $ 260,000 $(84,000)
------------ -----------
------------ -----------
Cash paid during the period
for interest $ 15,000 $ 21,000
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------------ -----------
Cash paid during the period for income taxes $ - $ -
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</TABLE>
See accompanying notes to consolidated financial statements.
7
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BARRINGER LABORATORIES, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
In the opinion of the Company, the unaudited financial statements
contain all adjustments (consisting of only normal recurring
accruals) necessary to present fairly the financial position of the
Company and its wholly owned subsidiary, Barringer Laboratorios de
Mexico S.A. de C.V. ("BLM"), as of March 31, 1996 and the results
of their operations and their cash flows for the three months ended
March 31, 1996 and 1995. The accounting policies followed by the
Company are set forth in the Notes to Consolidated Financial
Statements in the 1995 audited financial statements of Barringer
Laboratories, Inc. and Subsidiary included in its Annual Report on
Form 10-KSB filed with the Securities and Exchange Commission. The
Form 10-KSB should be read in conjunction herewith.
2. SEASONALITY
The business of the Company has been seasonal as a result of cold
weather restricting the availability of samples to the laboratories
in the cold winter months. Therefore, the results of operations
for the interim periods are not necessarily indicative of the
results to be expected for the full year.
8
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BARRINGER LABORATORIES, INC. AND SUBSIDIARY
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Sales of services for the three months ended March 31, 1996 of $1,296,000
represents a decrease of $146,000 (11.2%) from the same period in 1995. The
Environmental Division, experienced a decrease of $244,000 (24.5%) primarily
due to an existing customer's large one-time project which generated sales of
$198,000 for the three months ended March 31, 1995. Additionally, there were
volume decreases of $46,000 from other existing customers due to the
uncertainty surrounding the allocation of funds through the government
budgeting process. The Environmental Division's April, 1996 sales were less
than April, 1995 sales due to this uncertainty. Management of the Company
believes this uncertainty is only for a short period until the federal
government budget is finalized. The Mineral Division experienced an increase
of $98,000 (22.0%) due to an increase in Mexico sales of $174,000 over the
same period in 1995. This increase was due primarily to an existing
customer's special project, which generated sales of $92,000 for the three
months ended March 31, 1996, as well as the addition of new customers. This
increase was offset by a decrease of $76,000 (19.9%) in Mineral sales in the
United States caused by the severe wet weather in the Sierra Mountains of
Nevada.
Gross profit as a percentage of sales for the three months ended March 31,
1996 was 22.0% as compared to 25.0% for the same period in 1995. This
decrease was due to production inefficiencies in the Environmental Division
lab caused by lower sales and fixed costs allocated over a smaller sales base.
Operating expenses for the three months ended March 31, 1996 of $362,000
increased by $12,000 (3.4%) from the same period in 1995 primarily due to
higher selling payroll expenses and higher professional fees.
Other expenses for the three months ended March 31, 1996 were $9,000 compared
to $8,000 for the same period in 1995. This increase of $1,000 was primarily
due to lower interest income, offset by lower interest expense and other
income.
For the three months ended March 31, 1996 the Company incurred a loss of
$86,000 compared to income of $3,000 for the same period in 1995. This
decrease of $89,000 was primarily due to volume decreases in sales and
production inefficiencies in the Environmental Division, higher
selling/general administration expenses, and lower interest income offset by
lower interest expenses.
9
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BARRINGER LABORATORIES, INC. AND SUBSIDIARY
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
CAPITAL RESOURCES AND LIQUIDITY
Cash totaled $359,000 at March 31, 1996, compared with $170,000 at December
31, 1995. The $189,000 increase in cash resulted from cash provided by
operating activities of $299,000 which was offset by cash used for the
purchase of property and equipment of $109,000 and net cash used in financing
activities of $1,000.
Cash provided by operating activities resulted from the effect of certain
non-cash reconciling items of $125,000 (primarily depreciation and
amortization) and a decrease in operating assets (primarily trade
receivables) net of operating liabilities of $260,000, offset by the net loss
of $86,000.
Cash used for the purchase of property and equipment of $109,000 was related
to the acquisition of computer hardware and software to upgrade the
Laboratory Information Management System (LIMS).
Cash used in financing activities of $1,000 consisted of $65,000 used to
reduce long-term debt and a decrease in the working line of credit of
$84,000, offset by an increase in long term debt.
The Company has a working line of credit from a lending institution. This
line of credit availability is equal to 80% of the Company's eligible
accounts receivable. This line of credit is funding the Company's current
working capital requirements and has also been used to guarantee a $150,000
letter of credit required by the Colorado Department of Health to increase
the level of the Company's Radiochemistry License. This increase in the
license gives the Company the ability to grow the radiochemistry analytical
business.
Management of the company believes that additional capital is required to
fund the expansion of its environmental and mineral services business and to
improve overall Company liquidity. Management is currently evaluating
potential funding sources to obtain additional debt or equity financing.
Should the receipt of additional funding be delayed, the continued growth of
the Company's business may be negatively impacted.
10
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BARRINGER LABORATORIES, INC. AND SUBSIDIARY
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
INFLATION
Inflation was not a material factor in either the sales or the operating
expenses of the Company during the periods presented herein.
11
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BARRINGER LABORATORIES, INC. AND SUBSIDIARY
PART II
OTHER INFORMATION
None
12
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SIGNATURES
In accordance with the requirements of the Exchange Act, the Registrant
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
BARRINGER LABORATORIES, INC.
----------------------------
(REGISTRANT)
Date: May 13, 1996 By: /s/ CHARLES E. RAMSAY
-------------------------------\
Charles E. Ramsay
Chief Financial Officer
13
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 359,000
<SECURITIES> 0
<RECEIVABLES> 738,000
<ALLOWANCES> 24,000
<INVENTORY> 0
<CURRENT-ASSETS> 1,209,000
<PP&E> 2,959,000
<DEPRECIATION> 2,421,000
<TOTAL-ASSETS> 1,797,000
<CURRENT-LIABILITIES> 729,000
<BONDS> 0
0
0
<COMMON> 27,000
<OTHER-SE> 907,000
<TOTAL-LIABILITY-AND-EQUITY> 1,797,000
<SALES> 1,296,000
<TOTAL-REVENUES> 1,296,000
<CGS> 1,011,000
<TOTAL-COSTS> 1,011,000
<OTHER-EXPENSES> 371,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 15,000
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> (86,000)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (86,000)
<EPS-PRIMARY> (.05)
<EPS-DILUTED> 0
</TABLE>
