<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
(X) QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED
SEPTEMBER 30, 1995
OR
( ) TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE
ACT FOR THE TRANSITION PERIOD FROM ______ TO ______
Commission file number 0-439
American Locker Group Incorporated
(Exact name of small business issuer as specified in its charter)
Delaware 16-0338330
(State of other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification Number)
15 West Second Street, Jamestown, NY 14701
(Address of principal executive offices)
(716)664-9600
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year, if changed
since last report)
Check whether the issuer (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act
during the past 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. Yes X No
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
DURING THE PRECEDING FIVE YEARS:
Check whether the registrant filed all documents and reports
required to be filed by Section 12, 13 or 15(d) of the Exchange
Act after the distribution of securities under a plan confirmed
by a court. Yes No Not Applicable
APPLICABLE ONLY TO CORPORATE ISSUERS:
State the number of shares outstanding of each of the issuer's
class of common stock equity as of the latest practicable date:
NOVEMBER 2, 1995
Common Stock $1.00 par value - 818,626
Transitional Small Business Disclosure (check one) Yes No X<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
STATEMENTS OF CONSOLIDATED FINANCIAL CONDITION
AMERICAN LOCKER GROUP INCORPORATED AND SUBSIDIARIES
September 30, December 31,
1995 1994
------------- ------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $404,131 $315,685
Accounts receivable, less
allowance for doubtful
accounts (1995 $75,354;
1994 $68,912) 3,309,630 4,070,723
Inventories 2,601,232 2,105,537
Notes receivable 340,333 128,779
Prepaid expenses 155,511 187,001
Deferred income taxes 502,047 502,047
------------- ------------
TOTAL CURRENT ASSETS 7,312,884 7,309,772
PROPERTY, PLANT AND EQUIPMENT
Land 500 500
Buildings 495,916 489,986
Machinery and equipment 7,203,138 6,365,812
------------- ------------
7,699,554 6,856,298
Less allowances for depreciation
and amortization 6,205,409 5,941,203
------------- ------------
1,494,145 915,095
------------- ------------
TOTAL NON-CURRENT ASSETS 1,494,145 915,095
------------- ------------
TOTAL ASSETS $8,807,029 $8,224,867
============= ============
<PAGE>
STATEMENTS OF CONSOLIDATED FINANCIAL CONDITION
AMERICAN LOCKER GROUP INCORPORATED AND SUBSIDIARIES
September 30, December 31,
1995 1994
------------- -------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Demand note payable $ 100,000 $1,200,000
Accounts payable and accrued
expenses;
Trade 636,423 865,244
Related party 305,653 610,922
------------- --------------
942,076 1,476,166
Commissions, salaries, wages
and taxes thereon 223,612 246,547
Other accrued expenses 1,054,012 480,868
Federal and State income
taxes payable 962,043 21,246
Current portion of long-term
obligations 600,000 600,000
------------- --------------
TOTAL CURRENT LIABILITIES 3,881,743 4,024,827
DEFERRED INCOME TAXES 3,337 3,337
LONG-TERM OBLIGATIONS
Long term debt, less current
portion 450,000 900,000
Deferred pension income 174,542 174,542
Postretirement benefits 116,510 116,510
------------- --------------
741,052 1,191,052
------------- --------------
TOTAL NON-CURRENT LIABILITIES 744,389 1,194,389
------------- --------------
TOTAL LIABILITIES 4,626,132 5,219,216
STOCKHOLDERS' EQUITY
Common stock, par value $1 per
share - authorized 4,000,000
shares, issued 838,626 shares
in 1995 and 858,876 in 1994 838,626 858,876
Other capital 1,413,814 1,571,970
Retained earnings 2,025,644 709,782
Foreign currency translation
adjustment (97,187) (134,977)
------------- --------------
TOTAL STOCKHOLDERS' EQUITY 4,180,897 3,005,651
------------- --------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $8,807,029 $8,224,867
============= ==============
See notes to consolidated financial statements.
<PAGE>
STATEMENTS OF CONSOLIDATED OPERATIONS
AMERICAN LOCKER GROUP INCORPORATED AND SUBSIDIARIES
Three Months Ended September 30,
1995 1994
------------ ------------
Net Sales $5,633,832 $3,107,603
Cost of products sold 3,722,834 2,158,627
1,910,998 948,976
Selling, administrative and
general expenses 1,287,947 1,165,393
623,051 (216,417)
Interest and dividend income 24,094 6,392
Other income (expense)-net 65,698 87,848
Interest expense (34,248) (46,361)
PROFIT (LOSS) BEFORE
INCOME TAXES 678,595 (168,538)
Income taxes (credits) 272,263 (26,899)
NET PROFIT (LOSS) $406,332 ($141,639)
============= =============
Per share of common stock:
NET PROFIT (LOSS) $0.48 ($0.16)
============= =============
See notes to consolidated financial statements.
<PAGE>
STATEMENTS OF CONSOLIDATED OPERATIONS
AMERICAN LOCKER GROUP INCORPORATED AND SUBSIDIARIES
Nine Months Ended September 30,
1995 1994
------------- ------------
Net Sales $17,987,161 $9,966,450
Cost of products sold 11,999,278 6,905,466
5,987,883 3,060,984
Selling, administrative and
general expenses 3,814,814 3,473,033
2,173,069 (412,049)
Interest and dividend income 50,846 14,376
Other income -- net 207,611 192,905
Interest expense (137,094) (119,950)
PROFIT (LOSS) BEFORE
INCOME TAXES 2,294,432 (324,718)
Income taxes (credits) 978,569 (92,561)
NET PROFIT (LOSS) $1,315,863 ($232,157)
============= ==============
NET PROFIT (LOSS) PER
SHARE OF COMMON $1.54 ($0.27)
============= ==============
See notes to consolidated financial statements.
<PAGE>
STATEMENTS OF CONSOLIDATED CASH FLOWS
AMERICAN LOCKER GROUP INCORPORATED AND SUBSIDIARIES
Nine Months Ended September 30,
1995 1994
---------------- --------------
Cash flows from operating
activities:
Net income (loss) from
operations $1,315,863 ($232,157)
Adjustments to reconcile
net loss from operations
to net cash provided by
operating activities:
Depreciation and
amortization 259,625 451,196
Gain on disposition of
property, plant and
equipment (19,449) (82,650)
Change in assets and
liabilities:
Notes receivable (211,554) 188,169
Account receivable 761,093 (85,269)
Deferred income taxes 0 (102,302)
Inventories (495,695) (140,719)
Prepaid expenses 31,490 (17,729)
Accounts payable and
accrued expenses 956,917 (239,516)
NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES 2,598,290 (260,977)
Cash flows from investment
activities:
Purchase of property,
plant and equipment (843,924) (223,218)
Proceeds from sale of
property, plant and
equipment 24,697 89,813
NET CASH USED IN INVESTING
ACTIVITIES (819,227) (133,405)
Cash flows from financing
activities:
Additional borrowing
long-term 0 1,100,000
Net payments under Line
of Credit (1,100,000) (400,000)
Debt repayments (450,000) (450,000)
Treasury stock
purchased/retired (178,406) (86,528)
Stock options exercised 0 21,994
NET CASH (USED IN) PROVIDED
BY FINANCING ACTIVITIES (1,728,406) 185,466
Effect of exchange rate
changes on cash 37,790 16,869
Net increase (decrease) in
cash 88,447 (192,047)
Cash and cash equivalents
at beginning of year 315,684 317,625
CASH AND CASH EQUIVALENTS
AT END OF PERIOD $404,131 $125,578
=============== ==============
Supplemental cash flow
information:
Cash paid during the quarter for:
Interest $137,094 $119,950
=============== ==============
Income Taxes $75,000 $66,775
=============== ==============
See notes to consolidated financial statements.
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AMERICAN LOCKER GROUP INCORPORATED AND SUBSIDIARIES
1. The accompanying unaudited consolidated condensed financial
statements have been prepared in accordance with instructions to
Form 10-QSB and, in the opinion of the Company, include all
adjustments, consisting of normal recurring accruals, considered
necessary for a fair presentation of such condensed financial
statements. The condensed financial statements do not include
all information and footnotes normally associated with statements
of results of operations, financial condition, and cash flows
prepared in conformity with generally accepted accounting
principles.
2. Provision for income taxes is based upon the estimated annual
effective tax rate.
3. Net income per common share is computed by dividing net income
by the weighted average number of shares outstanding, plus, when
dilutive, the common stock equivalents which would arise from the
exercise of stock options, during the periods; 854,267 shares for
the nine months ended September 30, 1995 and 845,957 shares for
the quarter ended September 30, 1995; 863,479 for the nine months
ended September 30, 1994 and 862,565 for the quarter ended
September 30, 1994.
4. Inventories are valued at the lower of cost or market. Cost
is determined by using the last-in, first out method for
substantially all of the inventories.
September 30, December 31,
1995 1994
------------- ------------
Raw materials $1,398,881 $1,104,489
Work-in-process 1,275,179 1,266,263
Finished goods 869,574 677,187
------------- ------------
$3,543,634 $3,047,939
Less allowance to
reduce carrying
value to LIFO
basis 942,402 942,402
------------- ------------
$2,601,232 $2,105,537
<PAGE>
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
AMERICAN LOCKER GROUP INCORPORATED AND SUBSIDIARIES
LIQUIDITY AND SOURCES OF CAPITAL
The Company continues to have adequate resources and liquidity to
maintain and expand its operations. Working capital at September
30, 1995 was $3,984,000, up $699,000 over working capital of
$3,285,000 at December 31, 1994. The ratio of current assets to
current liabilities was 2.1 to 1 at September 30, 1995, as
compared to a ratio of 1.8 to 1 at December 1994. The increased
working capital resulted primarily from profitable operations
during the first nine months of 1995. Cash provided from
operations was $1,925,000 during the first nine months of 1995,
compared to cash used in operating activities of $261,000 for the
same period in 1994. The significant improvement in cash
provided by operating activities is a result of profitable
operations in 1995 and the realization of December 31, 1994
accounts receivable relating to significant shipments made to the
United States Postal Service (USPS) in late 1994. Cash generated
from operations was used principally to pay down borrowings under
the Company's line of credit. The Company's $3,000,000 line of
credit is available to assist in satisfying future working
capital needs, if required.
The Company anticipated that its requirements for funds for
operations and capital expenditures will be provided principally
from cash generated from future operations.
FIRST NINE MONTHS 1995 VS FIRST NINE MONTHS 1994
Sales for the first nine months of 1995 of $17,987,000 were up
$8,021,000 (80.5%) compared to sales of $9,966,000 during the
same period in 1994. Plastic locker sales for the first nine
months of 1995 were $10,527,000 compared to $3,083,000 during the
first nine months of 1994. The increase in plastic locker sales
relates to a significant contract awarded to the Company on
November 7, 1994 to provide plastic parcel lockers (CBUs) to the
USPS. During the first nine months of 1995, the Company's
delivery of CBU units totaled $7,353,000. During the first half
of 1995, the Company's delivery of CBU units totaled $5,030,000,
completing the first major scheduled release of CBU units
required by the USPS. Sales of plastic locker products are
expected to remain strong throughout 1995 as the Company
continues to ship CBU units under the USPS contract. All other
sales, metal and electronic, were $7,460,000 for the first nine
months of 1995 compared to $6,883,000 for the first nine months
of 1994. This increase relates to a general increase in demand
across all markets served by the Company.
Consolidated costs of goods sold as a percentage of sales was
66.7% during the first nine months of 1995 compared to 69.3% in
the first nine months of 1994. Increased gross margins on sales
represents better absorption of fixed overhead costs associated
with the increased volumes. The current margins on CBU units
will be reduced by approximately one half, as the sale price on
the first 20,000 units shipped include a reimbursement for the
Company's investment on tooling required to produce the CBU Type
III product.
Selling, administrative and general expense for the first nine
months of 1995 increased approximately $342,000 on the same
period in 1994. Selling, administrative and general expenses as
a percent of sales was 21.2% during the first nine months of
1995, down from 34.8% during the first nine months of 1994.
Other income - net of $208,000 in the first nine months of 1995
was up $15,000 from the same period in 1994. The increase in
1995 is due principally to discounts earned from the purchase of
materials for the CBU product.
Interest expense in the first nine months of 1995 increased by
$17,000 from the same period in 1994 due to an increase in the
average balance outstanding under the Company's working capital
line of credit and an increase in interest rates. Increased
borrowings, principally during the latter nine months of 1994 and
first half of 1995 was required to support the increased volume
with USPS.
THIRD QUARTER 1995 VS THIRD QUARTER 1994
Third quarter 1995 sales were $5,634,000 up $2,527,000 from the
same period in 1994. Plastic sales of $3,343,000 were up 81.3%
or $2,250,000 over 1994's third quarter. Sales of other
products, metal and electronic lockers, were $2,291,000 during
the third quarter of 1995 up slightly from third quarter sales of
$2,014,000 during the third quarter of 1994. Third quarter 1995
sales, while up from the third quarter of 1994, are down from the
sales levels experienced during the first quarter of 1995. The
first quarter of 1995 included the completion of the first major
scheduled release of CBU units required by the USPS.
Consolidated cost of products sold as a percentage of sales was
66.1% during the third quarter of 1995 which is relatively
comparable to the 69.5% experienced during the third quarter of
1994.
Selling, administrative and general expenses as a percent of net
sales was 22.9% during the third quarter of 1995 compared to
37.5% in the third quarter of 1994.
Other income - net of $66,000 in the third quarter of 1995 was
down from $88,000 in the third quarter 1994, due principally to
discounts earned from the purchase of materials for the CBU
product.
<PAGE>
PART II
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 27 Financial Data Schedule dated September 30,
1995.
(b) The Company did not file any reports on Form 8-K during
the three months ended September 30, 1995.
<PAGE>
SIGNATURE
In accordance with the requirements of the Exchange Act, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
AMERICAN LOCKER GROUP
INCORPORATED
(Registrant)
/s/ Harold J. Ruttenberg
---------------------------------
Harold J. Ruttenberg
Chairman, Chief Executive Officer,
Treasurer and Principal Accounting
Officer
Date November 3, 1995
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from SEC
Form 10-QSB and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 404,131
<SECURITIES> 0
<RECEIVABLES> 3,725,317
<ALLOWANCES> 75,354
<INVENTORY> 2,601,232
<CURRENT-ASSETS> 7,312,884
<PP&E> 7,203,138
<DEPRECIATION> 6,205,409
<TOTAL-ASSETS> 8,807,029
<CURRENT-LIABILITIES> 3,881,743
<BONDS> 0
<COMMON> 838,626
0
0
<OTHER-SE> 2,363,702
<TOTAL-LIABILITY-AND-EQUITY> 8,807,029
<SALES> 5,633,832
<TOTAL-REVENUES> 5,633,832
<CGS> 3,722,834
<TOTAL-COSTS> 5,010,781
<OTHER-EXPENSES> 34,248
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 678,595
<INCOME-TAX> 272,263
<INCOME-CONTINUING> 406,332
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 406,332
<EPS-PRIMARY> .48
<EPS-DILUTED> .48
</TABLE>
