<PAGE>
Page 1
Securities and Exchange Commission
Washington, D.C. 20549
Form 10-Q
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended April 30, 1998
------------------
( ) 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 0-19056
---------
Northstar Computer Forms, Inc.
------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Minnesota 41-0882640
- ------------------------------- ---------------------------------------
(State of other jurisdiction of (I.R.S. Employer Identification Numbers)
incorporation or organization)
7130 Northland Circle North Brooklyn Park, Minnesota 55428
- ---------------------------------------------------- --------
(Address or Principal Executive Offices) Zip Code
Registrant's telephone number, including area code (612) 531-7340
------------------
- -------------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last
report.
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 and 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.
Class Outstanding at May 28, 1998
----- ---------------------------
Common Stock, $ .05 par value 2,663,086 Shares
<PAGE>
Page 2
Part 1. Financial Information
Item 1. Financial Statements
NORTHSTAR COMPUTER FORMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
April 30, October 31,
1998 (Unaudited) 1997
------------------ -------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 3,759,524 $ 5,317,881
Accounts receivable, less
allowance for doubtful accounts
of $312,000 in 1998 and $294,000 in 1997 4,874,910 6,614,209
Inventories 1,852,210 1,912,646
Other current assets 453,563 267,737
Deferred income taxes 318,656 318,656
-------------------- -------------
Total current assets 11,258,863 14,431,129
-------------------- -------------
Property, plant and equipment 30,035,075 29,478,905
Less accumulated depreciation and
amortization (15,095,677) (14,267,762)
-------------------- -------------
Net property, plant and equipment 14,939,398 15,211,143
-------------------- -------------
Notes receivable, less current portion 245,294 829,108
Goodwill, net 1,657,046 1,757,799
Other assets, net 1,368,606 1,095,695
-------------------- -------------
Total assets $ 29,469,207 $ 33,324,874
-------------------- -------------
-------------------- -------------
</TABLE>
See accompanying notes to unaudited Condensed
Consolidated Financial Statements
<PAGE>
Page 3
NORTHSTAR COMPUTER FORMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
April 30, October 31,
1998 (Unaudited) 1997
-------------------- ------------------
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 1,385,000 $ 3,235,000
Accounts payable 1,570,321 1,373,805
Accrued liabilities 1,039,006 2,607,885
-------------------- ------------------
Total current liabilities 3,994,327 7,216,690
Deferred compensation 818,419 827,147
Deferred income taxes 1,257,063 1,184,633
Long-term debt, less current portion 5,805,550 7,330,550
Commitments
Stockholders' equity:
Common stock, $ .05 par value
authorized, 5,000,000 shares; issued
and outstanding, 2,655,699 at April 30, 1998
and 2,642,207 at October 31, 1997 132,783 132,110
Additional paid-in capital 2,313,360 2,245,730
Retained earnings 15,147,705 14,388,014
-------------------- ------------------
Total stockholders' equity 17,593,848 16,765,854
-------------------- ------------------
Total liabilities and stockholders' equity $ 29,469,207 $ 33,324,874
-------------------- ------------------
-------------------- ------------------
</TABLE>
See accompanying notes to unaudited Condensed
Consolidated Financial Statements
<PAGE>
Page 4
NORTHSTAR COMPUTER FORMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
April 30 April 30
1998 1997 1998 1997
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net Sales $10,753,943 $11,740,931 $21,361,970 $23,349,688
Cost of goods sold 7,792,827 8,116,094 15,539,933 16,635,816
----------- ----------- ----------- -----------
Gross profit $ 2,961,116 $ 3,624,837 $ 5,822,037 $ 6,713,872
Selling, general and
administrative expenses 2,092,199 2,113,784 4,029,053 4,026,663
----------- ----------- ----------- -----------
Operating income $ 868,917 $ 1,511,053 $ 1,792,984 $ 2,687,209
Other income (expense):
Interest expense (172,125) (217,878) (381,702) (448,234)
Other, net, principally
interest income 55,775 30,168 122,198 37,061
Gain (loss) on sale of assets (33,394) 3,266 (22,732) 3,266
----------- ----------- ----------- -----------
(149,744) (184,444) (282,236) (407,907)
----------- ----------- ----------- -----------
Earnings before income taxes 719,173 1,326,609 1,510,748 2,279,302
Provision for income taxes 277,000 531,000 574,000 913,000
----------- ----------- ----------- -----------
Net earnings $ 442,173 $ 795,609 $ 936,748 $ 1,366,302
----------- ----------- ----------- -----------
Net earnings per common share:
Basic $ 0.17 $ 0.31 $ 0.35 $ 0.53
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Diluted $ 0.15 $ 0.29 $ 0.33 $ 0.50
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Dividends declared per
common share $ 0.066 $ 0.05 $ 0.066 $ 0.05
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Weighted average common
share outstanding
Basic 2,648,457 2,585,806 2,645,884 2,585,806
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Diluted 2,879,088 2,741,398 2,876,515 2,737,913
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
See accompanying notes to unaudited Condensed
Consolidated Financial Statements
<PAGE>
Page 5
NORTHSTAR COMPUTER FORMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited)
Increase (Decrease) in Cash and Cash Equivalents
for the six months ended April 30, 1998 and 1997
<TABLE>
<CAPTION>
1998 1997
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net earnings $ 936,748 $ 1,366,302
Adjustments to reconcile net earnings to
net cash provided by operating
activities
Depreciation 1,257,370 1,214,390
Amortization 155,627 112,432
Provision for losses on receivables 27,600 27,600
Loss (gain) on sale of equipment 22,732 (3,266)
Changes in certain operating assets and liabilities 178,214 84,430
------------- --------------
Net cash provided by operating activities 2,578,291 2,801,888
------------- --------------
Cash flows from investing activities:
Capital expenditures and equipment deposits (1,061,357) (1,038,838)
Capitalized computer software costs (229,261)
Proceeds from sale of equipment 53,000 8,900
Notes receivable repayments 583,814 89,213
Other (4,500)
------------- --------------
Net cash used in investing activities (653,804) (945,225)
------------- --------------
Cash flows from financing activities:
Principal payments on long-term debt (3,375,000) (404,450)
Dividends paid (176,147) (129,290)
Stock options exercised 68,303 47,577
------------- --------------
Net cash used in financing activities (3,482,844) (486,163)
------------- --------------
Net (decrease) increase in cash and cash equivalents (1,558,357) 1,370,500
Cash and cash equivalents at beginning of period 5,317,881 2,378,105
------------- --------------
Cash and cash equivalents at end of period $ 3,759,524 $ 3,748,605
------------- --------------
------------- --------------
Supplemental disclosure of cash flow:
Cash paid during the period for:
Income taxes $ 1,278,000 $ 489,900
Interest 381,959 459,914
</TABLE>
See accompanying notes to unaudited Condensed
Consolidated Financial Statements
<PAGE>
Page 6
NORTHSTAR COMPUTER FORMS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
April 30, 1998
(Unaudited)
1. Basis of Presentation
The interim condensed consolidated financial statements included in this
Form 10-Q have been prepared by Northstar Computer Forms, Inc. (the
Company), without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been
condensed, or omitted, pursuant to these rules and regulations. The year
end balance sheet was derived from audited financial statements, but does
not include all disclosures required by generally accepted accounting
principles. These condensed consolidated financial statements should be
read in conjunction with the financial statements and related notes
included in the Company's 1997 Annual Report on Form 10-KSB as filed with
the Securities and Exchange Commission.
The condensed consolidated financial statements presented herein as of
April 30, 1998 and for the six months ended reflect, in the opinion of
management, all adjustments (which include only normal, recurring
adjustments) necessary for a fair presentation of financial position and
results of operations for the periods presented. The results of operations
for any interim period are not necessarily indicative of results for the
full year.
2. Earnings per share
In February 1997, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS)No. 128, "Earnings per
Share," a new standard for computing and presenting earnings per share. As
required, the Company adopted this new standard in the first quarter of the
fiscal year. Net earnings per share for all periods presented have been
computed by dividing net earnings by the weighted average number of common
shares outstanding (basic EPS) and by the weighted average number of common
and common equivalent shares outstanding (diluted EPS). Common equivalent
shares relate to stock options when their effect is not antidilutive.
On May 13, 1998 the common stock of the Company was split 3 for 2. All
applicable per share and number of share data have been retroactively
restated to reflect the stock split.
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Page 7
The computation of basic and diluted weighted average common shares
outstanding is as follows:
<TABLE>
<CAPTION>
For the three months For the six months
ended April 30, ended April 30,
1998 1997 1998 1997
---- ---- ---- ----
<S> <C> <C> <C> <C>
Weighted average common
shares outstanding 2,648,457 2,585,806 2,645,884 2,585,806
Common equivalent shares
outstanding:
Option equivalents 230,631 155,592 230,631 152,107
--------- --------- --------- ---------
Weighted average common
and common equivalent 2,879,088 2,741,398 2,876,515 2,737,913
--------- --------- --------- ---------
--------- --------- --------- ---------
</TABLE>
3. New Accounting Pronouncements
In June 1997, the Financial Accounting Standards Board issued Statement
130, "Reporting Comprehensive Income," a new standard requiring the
operating and display of "Comprehensive Income" (defined as the change in
equity of a business enterprise during a period from sources other than
those resulting from investment by owners and distributions to owners) and
its components in a full-set of general-purpose financial statements. The
new standard will be effective for the Company's annual financial statement
in fiscal year 1999. In the six month period ended April 30, 1998 and in
fiscal year 1997, the Company did not have any changes in equity from
nonowner sources.
In June 1997, the Financial Accounting Standards Board issued Statement
131, "Disclosure About Segments of an Enterprise and Related Information,"
a new standard for reporting information about operating or business
segments in financial statements. The new standard will be effective for
the Company's annual financial statements in fiscal year 1999. The Company
has not evaluated what impact, if any, this new standard will have on the
Company's future reporting of operating and business segments.
4. Employee's Incentive Stock Option Plan
At the stockholder's meeting on April 9, 1998 the stockholders approved an
additional 200,000 shares of common stock as available for option grants
under the 1994 Employee's Incentive Stock Option Plan.
<PAGE>
Page 8
NORTHSTAR COMPUTER FORMS, INC.
Item 2 - Management's Discussion and Analysis of
Financial Condition and Results of Operations of
Interim Financial Data
Results of Operations
The following discussion and analysis provides information that the Company's
management believes is relevant to an assessment and understanding of the
Company's results of operations and financial condition.
In connection with the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995, the Company cautions readers that statements
contained herein, other than historical data, may be forward-looking and subject
to risk and uncertainties. The following important factors could cause the
Company's actual results to differ materially from those projected in
forward-looking statements made by, or on behalf of, the Company.
- Inability to successfully complete the integration of the Company's
new software system within all internal bank forms production
facilities.
- Loss of a major customer due to bank consolidations or other reasons.
- Rise in paper prices which outpaces the Company's ability to pass the
increase onto its customers.
- Technological obsolescence.
- Competition from large national manufacturers of internal bank forms.
The following table sets forth, for the period indicated, certain items in the
Company's condensed consolidated statements of earnings as a percentage of net
sales and the percentage changes of the dollar amounts of such items as compared
with the prior period.
<TABLE>
<CAPTION>
Three Months Ended April 30
Percentage of Net Sales Increase (Decrease)
----------------------- -------------------
1998 1997 1998 vs. 1997
---- ---- -------------
<S> <C> <C> <C>
Net Sales................... 100.0 % 100.0 % (8.4) %
Cost of Goods Sold.......... 72.5 69.1 (4.0)
------ ----- --------
Gross Profit ....... 27.5 30.9 (18.3)
------ ----- --------
Selling, General and
Administrative Expenses... 19.4 18.0 (1.0)
------ ----- --------
Operating Income............ 8.1 12.9 (42.5)
Net Earnings................ 4.1 6.8 (44.4)
------ ----- --------
<CAPTION>
Six Months Ended April 30
Percentage of Net Sales Increase (Decrease)
----------------------- -------------------
<S> <C> <C> <C>
1998 1997 1998 vs. 1997
---- ---- -------------
Net Sales .................. 100.0 % 100.0 % (8.5) %
Cost of Goods Sold ......... 72.7 71.2 (6.6)
------ ----- --------
Gross Profit ....... 27.3 28.8 (13.3
------ ----- --------
Selling, General and
Administrative Expenses .. 18.9 17.3 0.1
------ ----- --------
Operating Income ........... 8.4 11.5 (33.3)
Net Earnings ............... 4.4 5.9 (31.4)
------ ----- --------
</TABLE>
<PAGE>
Page 9
The following table sets forth the net sales for the periods indicated for
internal bank forms, custom business forms and consolidated net sales of the
Company.
<TABLE>
<CAPTION>
INTERNAL CUSTOM CONSOLIDATED
BANK FORMS % BUSINESS FORMS % SALES
---------- - -------------- - ------------
<S> <C> <C> <C> <C> <C>
Current Quarter
1998 $ 7,366,822 69 $3,387,121 31 $10,753,943
1997 $ 8,689,240 74 $3,051,691 26 $11,740,931
Increase (Decrease) (1,322,418) 335,430 (986,988)
Percentage Change (15.2%) 11.0% (8.4%)
Six Months
1998 $14,822,106 69 $6,539,864 31 $21,361,970
1997 $17,114,838 73 $6,234,850 27 $23,349,688
Increase (Decrease) (2,292,732) 305,014 (1,987,718)
Percentage Change (13.4%) 4.9% (8.5%)
</TABLE>
NET SALES. Sales of internal bank forms decreased for the first six months of
1998. This decrease in sales is due to non-renewal of sales contracts and
acquisition of some internal bank forms customers by banks who are not customers
of the Company. In addition, in 1997 there were several large bank conversion
sales. For the six months of 1998 the Company has had only one bank conversion
sale. A bank conversion results generally from an acquisition of one bank by
another or a change in the equipment utilized by a bank for internal document
sorting. Therefore, due to the unpredictable nature of bank conversions, the
Company's revenue for this type of sale fluctuates. Sales of custom business
forms increased for the six months and the quarter. Sales increases resulted
from an increased order volume from existing customers as well as sales to new
customers.
GROSS PROFIT. Gross profit for the second quarter of 1998 decreased from 30.9
percent of sales in 1997 to 27.5 percent of sales in 1998. For the six months,
gross profit decreased from 28.8 percent of sales in 1997 to 27.3 percent of
sales in 1998. Stable paper prices resulted in paper costs as a percentage of
sales of approximately 1.5 percent less in 1998 than in 1997. Other costs,
principally fixed and semi-fixed costs remain relatively steady, increased
approximately $85,000. However, due to the reduction in sales, cost of goods
sold increased from 69.1 percent in 1997 to 72.5 percent in 1998 for the second
quarter and from 71.2 percent in 1997 to 72.7 percent in 1998 for the six
months.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSE. Selling, general and
administrative expense decreased $21,585 for the three months ended April 30 and
increased only $2,390 for the six months ended April 30. However, due to the
reduction in sales, the selling, general and administrative expenses accounted
for 19.4 and 18.9 percent of sales in the second quarter and first six months of
1998 compared to 18.0 and 17.3 percent of sales in the second quarter and first
six months of 1997, respectively. In 1998 sales commissions to
distributors/partners were restructured to provide additional incentive to
increase new business. These restructured commission costs increases were
offset by decreases in costs related to employee profit sharing and bonus
benefits and reduced computer service costs.
<PAGE>
Page 10
OPERATING INCOME. As a result of the previously discussed sales decrease and
cost increases, operating income for the second quarter of 1998 was 8.1 percent
of sales and 8.4 percent of sales for the six months ended April 30, 1998
compared to 12.9 percent for the second quarter of 1997 and 11.5 percent for the
six months ended April 30, 1997.
OTHER INCOME EXPENSE. Other expense decreased approximately $125,000 for the
first six months of 1998. This reduction is principally due to decreased
interest expense as a result of debt repayment and increased interest income
from investment of additional cash balances on hand during 1998.
PROVISION FOR INCOME TAXES. The provision for income taxes decreased to 38
percent in 1998 compared to 40 percent in 1997.
EARNINGS. Earnings before income taxes were $719,173 or 6.7 percent of sales
for the second quarter of 1998 and $1,510,748 or 7.1 percent of sales for the
six months ended April 30, 1998 compared with $1,326,609 or 11.3 percent of
sales in the second quarter of 1997 and $2,279,302 or 9.8 percent of sales for
the six months ended April 30, 1997. Net earnings were $936,748 ($ .33 per
share diluted, $ .35 per share basic) for the six months ended April 30, 1998
compared to $1,366,302 ($ .50 per share diluted, $ .53 per share basic) in 1997.
FINANCIAL CONDITION AND LIQUIDITY
LONG-TERM DEBT. The Company's long-term debt consists of a term loan and
Industrial Development Revenue Bonds. The term loan principal is payable in
quarterly installments and from annual excess cash flow as defined in the Loan
Agreement with any remaining principal balance on the term loan due on July 31,
2003. The Company paid excess cash flow payments of $1,000,000 on January 31,
1998 and $2,000,000 on April 30, 1998. Interest is payable monthly. The bonds
require annual principal payments and monthly interest payments at a variable
rate based upon comparable tax-exempt issues. Both the term loan and the bonds
specify limits on capital expenditures and dividends. Both also specify working
capital, net worth and certain financial ratios that the Company must maintain.
LIQUIDITY. Cash provided by operations were $2,578,291 during 1998 compared to
$2,801,888 in 1997. Working capital was $7.3 million on April 30, 1998,
compared to $7.2 million on October 31, 1997.
During the six months ended April 30, 1998 the Company continued to expand its
manufacturing capacity by the acquisition of $1,290,698 in equipment and
computer software compared to capital expenditures of $1,038,838 for the first
six months of 1997. The Company anticipates that total equipment and computer
software expenditures for 1998 will approximate the 1997 capital expenditures of
$2,050,000. During 1998, the Company received a prepayment of a note receivable
of $540,619 previously classified as a noncurrent asset.
If necessary to finance operations, the Company has a $1.5 million line of
credit at an interest rate equal to the bank's reference rate. The Company did
not have to utilize this line of credit during 1998 and 1997. The Company
believes its existing financial resources are adequate to fund its 1998
operations, including capital expenditures and dividend payments, and foresees
no events or uncertainties that are likely to have a material impact on its
liquidity. The Company expects to be able to generate sufficient cash flow from
operations to avoid relying on external sources of financing beyond the
facilities already in place.
<PAGE>
Page 11
OUTLOOK. Merger and acquisition activity in the banking industry is extremely
strong at this time. Banks generally consolidate their purchasing of internal
bank forms with one supplier. Therefore, the Company could obtain or lose a
significant customer as this consolidation activity continues. Recently,
competition in the internal bank forms industry has become more intense and is
particularly strong in contract negotiations with the larger banks. This
increased competition has resulted in non-renewal of three contracts and
renewals of certain contracts at reduced profit margin levels. The Company has
also obtained three new large volume internal bank form customers. In addition,
to increase and improve market penetration in the internal bank forms market,
the Company has developed additional distribution channels by forming two new
sales alliances. The Company anticipates sales from these new alliances to
begin early in the fourth quarter of fiscal 1998. In the custom business forms
business, the Company has verbally agreed to an extension of its contracts to
manufacture forms for its largest customer. The Company also has proposals
pending for four new forms contracts.
To offset the possible impact of competition, the integration of the Company's
computer systems is increasingly important. The internal bank forms computer
system which the Company developed and installed in the first location in 1997
is being continually enhanced and is now installed in three of the Company's
four internal bank forms production facilities. The fourth installation is
scheduled for later this fiscal year. This integrated computer system is
expected to increase operating efficiencies within these plants by streamlining
order processing, enhancing equipment utilization and improving billing and
reporting capabilities.
In addition, the Company is developing and implementing additional marketing
strategies to strengthen the Company's market position. These marketing efforts
will focus on the internal bank forms industry as well as the other financial
forms products manufactured at the Company's custom business forms production
facilities.
READINESS FOR YEAR 2000. The Company has taken actions to understand the nature
and extent of work required to make the Company's systems Year 2000 compliant.
The Company believes, based on available information, that it will be able to
manage its total Year 2000 transition without any material adverse effect on its
business operations, products or financial prospects.
NEW ACCOUNTING PRONOUNCEMENTS. In June 1997, the Financial Accounting Standards
Board issued Statement 130, "Reporting Comprehensive Income, " a new standard
requiring the operating and display of "Comprehensive Income" (defined as the
change in equity of a business enterprise during a period from sources other
than those resulting from investment by owners and distributions to owners) and
its components in a full-set of general-purpose financial statements. The new
standard will be effective for the Company's annual financial statements in
fiscal year 1999. In the six month period ended April 30, 1998 and in fiscal
year 1997, the Company did not have any changes in equity from nonowner sources.
In June 1997, the Financial Accounting Standards Board issued Statement 131,
"Disclosure About Segments of an Enterprise and Related Information," a new
standard for reporting information about operating or business segments in
financial statements. The new standard will be effective for the Company's
annual financial statements in fiscal year 1999. The Company has not evaluated
what impact, if any, this new standard will have on the Company's future
reporting of operating and business segments.
<PAGE>
Page 12
NORTHSTAR COMPUTER FORMS, INC.
PART II. - OTHER INFORMATION
Item 2. As disclosed herein, the registrant declared a 3 for 2 stock split
payable May 13, 1998 to shareholders of record as of April 30, 1998.
Item 4. Submission of Matters to a Vote of Security Holders
The registrant held its Annual Meeting of Stockholder on April 9,
1998.
(a) The shareholders re-elected the incumbent Board of Directors: Roger T.
Bredesen, John G. Mutschler, J.S. Braun, Kenneth E. Overstreet, Roy W.
Terwilliger and Dr. Lester A. Wanninger.
(b) The shareholders approved changes in the Company's 1994 Employee's
Incentive Stock Option Plan to extend the term to 2003 and to add an
additional 200,000 shares of common stock.
(c) The shareholders approved the re-appointment of Coopers & Lybrand LLP,
as independent accountants of the Company for the year to end October
31, 1998.
1,350,399 shares were voted affirmatively. There were 35,591 votes
against and 4,890 votes obstained.
Item 6. Exhibits and Reports on Form 8-K - None.
None of the other items contained in Part II of Form 10-Q is applicable to the
Company for the quarter ended April 30, 1998.
<PAGE>
Page 13
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.
Northstar Computer Forms, Inc.
(Registrant)
Date: June 10, 1998 By: Mary Ann Morin
---------------------- -----------------------------
Mary Ann Morin
Chief Financial Officer
(Principal Financial Officer)
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-START> NOV-01-1998
<PERIOD-END> APR-30-1998
<CASH> 3,759,524
<SECURITIES> 0
<RECEIVABLES> 5,186,910
<ALLOWANCES> 312,000
<INVENTORY> 1,852,210
<CURRENT-ASSETS> 11,258,863
<PP&E> 30,035,075
<DEPRECIATION> 15,095,677
<TOTAL-ASSETS> 29,469,207
<CURRENT-LIABILITIES> 3,994,327
<BONDS> 5,805,550
0
0
<COMMON> 132,783
<OTHER-SE> 17,461,065
<TOTAL-LIABILITY-AND-EQUITY> 29,469,207
<SALES> 21,361,970
<TOTAL-REVENUES> 21,361,970
<CGS> 15,539,933
<TOTAL-COSTS> 19,541,386
<OTHER-EXPENSES> (99,466)
<LOSS-PROVISION> 27,600
<INTEREST-EXPENSE> 381,702
<INCOME-PRETAX> 1,510,748
<INCOME-TAX> 574,000
<INCOME-CONTINUING> 936,748
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 936,748
<EPS-PRIMARY> .35
<EPS-DILUTED> .33
</TABLE>
