<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 JUNE 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 Identification
of incorporation or Number)
organization)
15 West Second Street, Jamestown, New York 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:
AUGUST 7, 1995
Common Stock $1.00 par value - 858,876
Transitional Small Business Disclosure (check one) Yes No X
___ ___
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ITEM 1 - FINANCIAL STATEMENTS
STATEMENTS OF CONSOLIDATED FINANCIAL CONDITION
AMERICAN LOCKER GROUP INCORPORATED AND SUBSIDIARIES
June 30, December 31,
1995 1994
___________ ____________
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 420,702 $ 315,685
Accounts receivable, less
allowance for doubtful accounts
(1995 $79,020; 1994 $68,912) 3,012,369 4,070,723
Inventories 2,778,705 2,105,537
Notes receivable 325,967 128,779
Prepaid expenses 429,274 187,001
Deferred income taxes 502,075 502,047
___________ ___________
TOTAL CURRENT ASSETS 7,469,092 7,309,772
PROPERTY, PLANT AND EQUIPMENT
Land 500 500
Buildings 494,394 489,986
Machinery and equipment 6,468,577 6,365,812
___________ ___________
6,963,471 6,856,298
Less allowances for depreciation
and amortization 6,123,784 5,941,203
___________ ___________
839,687 915,095
___________ ___________
TOTAL NON-CURRENT ASSETS 839,687 915,095
___________ ___________
TOTAL ASSETS $ 8,308,779 $ 8,224,867
=========== ===========
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STATEMENTS OF CONSOLIDATED FINANCIAL CONDITION
AMERICAN LOCKER GROUP INCORPORATED AND SUBSIDIARIES
June 30, December 31,
1995 1994
___________ _____________
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES
Demand note payable $ 200,000 $ 1,200,000
Accounts payable and accrued
expenses:
Trade 716,576 865,244
Related party 359,130 610,922
___________ ___________
1,075,706 1,476,166
Commissions, salaries, wages and
taxes thereon 167,656 246,547
Other accrued expenses 894,028 480,868
Federal and State income taxes
payable 592,541 21,246
Current portion of long-term
obligations 600,000 600,000
___________ ___________
TOTAL CURRENT LIABILITIES 3,529,931 4,024,827
DEFERRED INCOME TAXES 3,364 3,337
LONG-TERM OBLIGATIONS
Long term debt, less current
portion 600,000 900,000
Deferred pension income 174,542 174,542
Postretirement benefits 116,510 116,510
___________ ___________
891,052 1,191,052
___________ ___________
TOTAL NON-CURRENT LIABILITIES 894,416 1,194,389
___________ ____________
TOTAL LIABILITIES 4,424,347 5,219,216
STOCKHOLDERS' EQUITY
Common stock, par value $1 per
share--authorized 4,000,000
shares, issued 858,876 shares
in 1995 and 858,876 in 1994 852,876 858,876
Other capital 1,527,720 1,571,970
Retained earnings 1,619,312 709,782
Foreign currency translation
adjustment (115,476) (134,977)
___________ ____________
TOTAL STOCKHOLDERS' EQUITY 3,884,432 3,005,651
___________ ____________
TOTAL LIABILITIES AND
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STOCKHOLDERS' EQUITY $ 8,308,779 $ 8,224,867
=========== ===========
See notes to consolidated financial statements.
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<PAGE>
STATEMENTS OF CONSOLIDATED OPERATIONS
AMERICAN LOCKER GROUP INCORPORATED AND SUBSIDIARIES
Three Months Ended June 30,
1995 1994
______________ ____________
Net sales $ 5,273,245 $ 3,385,251
Cost of products sold 3,574,124 2,297,172
______________ ____________
1,699,121 1,088,079
Selling, administrative and
general expenses 1,329,169 1,150,452
______________ ____________
369,952 (62,373)
Interest and dividend income 9,619 3,170
Other income (expense)--net 64,274 49,596
Interest expense (43,174) (46,980)
______________ ____________
PROFIT (LOSS) BEFORE INCOME
TAXES 400,671 (56,587)
Income taxes (credits) 157,905 (26,682)
______________ ____________
NET PROFIT (LOSS) $ 242,766 ($29,905)
============== ============
Per share of common stock:
NET PROFIT (LOSS) $ 0.28 ($0.03)
============== ============
See notes to consolidated financial statements.
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<PAGE>
STATEMENTS OF CONSOLIDATED OPERATIONS
AMERICAN LOCKER GROUP INCORPORATED AND SUBSIDIARIES
Six Months Ended June 30,
1995 1994
______________ ____________
Net sales $ 12,353,329 4 6,858,847
Cost of products sold 8,276,444 4,746,839
______________ ____________
4,076,885 2,112,008
Selling, administrative and
general expenses 2,526,867 2,307,640
______________ ____________
1,550,018 (195,632)
Interest and dividend income 26,752 7,984
Other income (expense)--net 141,913 105,057
Interest expense (102,846) (73,589)
______________ ____________
PROFIT (LOSS) BEFORE INCOME
TAXES 1,615,837 (156,180)
Income taxes (credits) 706,306 (65,662)
______________ ____________
NET PROFIT (LOSS) $ 909,531 ($90,518)
============== ============
NET PROFIT (LOSS) PER SHARE
OF COMMON $ 1.06 ($0.10)
============== ============
See notes to consolidated financial statements.
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STATEMENTS OF CONSOLIDATED CASH FLOWS
AMERICAN LOCKER GROUP INCORPORATED AND SUBSIDIARIES
Six Months Ended June 30,
1995 1994
______________ ____________
Cash flows from operating
activities:
Net income (loss) from
operations $909,531 ($90,518)
Adjustments to reconcile net
loss from operations to net
cash provided by operating
activities:
Depreciation and amortization 173,154 312,475
Gain (loss) on disposition of
property, plant and equipment (23,767) (27,788)
Change in assets and liabilities:
Notes receivable (197,188) 145,850
Accounts receivable 1,058,354 (609,898)
Income taxes 0 (88,339)
Inventories (673,168) (104,690)
Prepaid expenses (242,273) (8,167)
Accounts payable and accrued
expenses 505,104 797
___________ ___________
NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES 1,509,747 (470,278)
Cash flows from investment activities:
Purchase of property, plant and
equipment (98,377) (117,905)
Proceeds from sale of property,
plant and equipment 24,397 32,682
___________ ___________
NET CASH USED IN INVESTING
ACTIVITIES (73,980) (85,223)
Cash flows from financing activities:
Additional borrowing long-term
debt 0 1,100,000
Net borrowing under line of
credit (1,000,000) (200,000)
Debt repayments (300,000) (300,000)
Treasury stock purchased/
retired (50,250) (86,528)
Stock options exercised 0 21,994
___________ ___________
NET CASH (USED IN) PROVIDED
BY FINANCING ACTIVITIES (1,350,250) 535,466
___________ ___________
Effect of exchange rate changes
on cash 19,501 (19,477)
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___________ ___________
Net increase (decrease) in cash 105,018 (39,512)
Cash and cash equivalents at
beginning of year 315,684 317,625
___________ ___________
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $420,702 $278,113
=========== ===========
Supplemental cash flow information:
Cash paid during the quarter for:
Interest $102,846 $73,589
=========== ===========
Income Taxes $50,000 $66,775
=========== ===========
See notes to consolidated financial statements.
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NOTES TO CONSOLIDATED FINANCIAL INFORMATION
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;
858,411 shares for the six months ended June 30, 1995 and 857,962
shares for the quarter ended June 30, 1995; 863,871 for the six
months ended June 30, 1994 and 859,583 for the quarter ended
June 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.
June 30, December 31,
1995 1994
____________ ____________
Raw materials $ 1,515,622 $ 1,104,489
Work-in-process 1,281,013 1,266,263
Finished goods 924,472 677,187
____________ ____________
$ 3,721,107 $ 3,047,939
Less allowance to
reduce carrying
value to LIFO
basis 942,402 942,402
____________ ____________
$ 2,778,705 $ 2,105,537
============ ============
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<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 June 30,
1995 was $3,939,000 up $654,000 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 June 30, 1995, as compared to
a ratio of 1.8 to 1, at December 31, 1994. The increased working
capital resulted primarily from profitable operations during the
first six months of 1995. Cash provided from operations was
$1,510,000 during the first six months of 1995, compared to cash
used in operating activities of $470,000 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 anticipates that its requirements for funds for
operations and capital expenditures will be provided principally
from cash generated from future operations.
FIRST SIX MONTHS 1995 VS. FIRST SIX MONTHS 1994
Sales for the first six months of 1995 of $12,353,000 were up
$5,494,000 (80%) compared to sales of $6,859,000 during the same
period in 1994. Plastic locker sales for the first half of 1995
were $7,184,000 compared to $1,990,000 during the first half 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 (CBU's) to the USPS. During
the first half of 1995, the Company's delivery of CBU units
totaled $5,030,000. During the first quarter of 1995, the
Company's delivery of CBU units totaled $3,534,000, completing
the first major scheduled release of CBU units required by 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
$5,169,000 for the first six months of 1995 compared to
$4,869,000 for the first six 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 67%
during the first six months of 1995 compared to 69.2% in the
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first six 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 in tooling required to produce the CBU Type
III product.
Selling, administrative and general expense for the first half of
1995 increased approximately $219,000 on the same period in 1994.
Selling, administrative and general expenses as a percent of
sales was 20.5% during the first six months of 1995, down from
33.6% during the first six months of 1994.
Other income--net of $142,000 in the first half of 1995 was up
$37,000 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 half of 1995 increased $29,000 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 later half of 1994 and first quarter of
1995 was required to support the increased volume with USPS.
SECOND QUARTER 1995 VS. SECOND QUARTER 1994
Second quarter sales were $5,273,000 up $1,888,000 from the same
period in 1995. Plastic sales of $2,643,000 were up 329% or
$1,840,000 over 1994's second quarter. Sales of other products,
metal and electronic lockers, were $2,630,000 during the second
quarter of 1995 up slightly from second quarter sales of
$2,582,000 during the second quarter of 1994. Second quarter
1995 sales, while up from the second 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
67.8% during the second quarter of 1995 which is relatively
comparable to the 67.9% experienced during the second quarter of
1994.
Selling, administrative and general expenses as a percent of net
sales was 25.2% during the second quarter of 1995 compared to 34%
in the second quarter of 1994.
Other income--net of $64,000 in the second quarter of 1995 was up
from $50,000 in the second quarter of 1994, due principally to
discounts earned from the purchase of materials for the CBU
product.
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<PAGE>
PART II
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 27 Financial Data Schedule dated June 30,
1995.
(b) The Company did not file any reports on Form 8-K
during the three months ended June 30, 1995.
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S I G N A T U R E
- - - - - - - - -
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)
By /s/ Harold J. Ruttenberg
_________________________________
Harold J. Ruttenberg
Chairman, Chief Executive Officer,
Treasurer and Principal Accounting
Officer
Date August 11, 1995
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<PAGE>
EXHIBIT INDEX
Prior Filing or
Sequential Page
Exhibit No. No. Herein
___________ _______________
27 Financial Data Schedule
dated June 30,1995
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<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> JUN-30-1995
<CASH> 420,702
<SECURITIES> 0
<RECEIVABLES> 3,417,356
<ALLOWANCES> 79,020
<INVENTORY> 2,778,705
<CURRENT-ASSETS> 7,469,092
<PP&E> 6,965,411
<DEPRECIATION> 6,123,784
<TOTAL-ASSETS> 8,308,779
<CURRENT-LIABILITIES> 3,529,931
<BONDS> 0
<COMMON> 852,876
0
0
<OTHER-SE> 2,265,120
<TOTAL-LIABILITY-AND-EQUITY> 8,308,779
<SALES> 5,273,245
<TOTAL-REVENUES> 5,273,245
<CGS> 3,574,124
<TOTAL-COSTS> 4,903,293
<OTHER-EXPENSES> 43,174
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 400,671
<INCOME-TAX> 157,905
<INCOME-CONTINUING> 242,766
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 242,766
<EPS-PRIMARY> .28
<EPS-DILUTED> .28
</TABLE>
