UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE PERIOD ENDED JUNE 30, 1997
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER 1-5005
SELAS CORPORATION OF AMERICA
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
PENNSYLVANIA 23-1069060
(STATE OR OTHER JURISDICTION OF (IRS EMPLOYER IDENTIFICATION NO.)
INCORPORATION OR ORGANIZATION)
DRESHER, PENNSYLVANIA 19025
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
(215) 646-6600
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
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 SUCH FILING REQUIREMENTS FOR THE PAST 90 DAYS.
(X) YES ( ) 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 AUGUST 4, 1997
COMMON SHARES, $1.00 PAR VALUE 5,576,124 (exclusive of 363,564
treasury shares)
-2-
SELAS CORPORATION OF AMERICA
I N D E X
Page
Number
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets as of
June 30, 1997 and December 31, 1996 . . . . . . . . 3, 4
Consolidated Statements of Operations for
the Three Months Ended June 30, 1997
and 1996. . . . . . . . . . . . . . . . . . . . . . 5
Consolidated Statements of Operations for the
Six Months Ended June 30, 1997 and 1996 . . . . . . 6
Consolidated Statements of Cash Flows
for the Six Months Ended June 30,
1997 and 1996 . . . . . . . . . . . . . . . . . . . 7
Consolidated Statement of Shareholders' Equity
for the Six Months Ended June 30, 1997 . . . . . 8
Notes to Consolidated Financial Statements . . . . 9,10,11
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations . . . . . . . . . . . . . . . . . 12,13,14
PART II - OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security
Holders . . . . . . . . . . . . . . . . . . 15
Item 6. Exhibits and Reports on Form 8-K . . . . . . 15
-3-
SELAS CORPORATION OF AMERICA
Consolidated Balance Sheets
Assets
June 30, December 31,
1997 1996
(Unaudited) (Audited)
Current assets
Cash, including cash equivalents of
$8,974,000 in 1997 and $7,532,000 in
1996 . . . . . . . . . . . . . . . . . . $ 9,537,497 $ 8,343,820
Accounts receivable (including unbilled
receivables of $7,463,000 in 1997 and
$7,783,000 in 1996 less allowance for
doubtful accounts of $703,000 in 1997
and $787,000 in 1996) . . . . . . . . . 28,312,778 41,660,153
Inventories . . . . . . . . . . . . . . 9,414,502 8,433,522
Deferred income taxes . . . . . . . . . . 2,307,057 2,051,580
Other current assets . . . . . . . . . . . 455,856 623,169
Total current assets . . . . . . . . . 50,027,690 61,112,244
Investment in unconsolidated affiliate . . 534,997 538,278
Property, plant and equipment
Land . . . . . . . . . . . . . . . . . . . 1,052,635 1,118,802
Buildings . . . . . . . . . . . . . . . . 10,869,718 11,499,609
Machinery and equipment . . . . . . . . . 21,193,418 19,455,946
33,115,771 32,074,357
Less: Accumulated depreciation . . . . . 16,253,667 15,362,577
Net property, plant and equipment . . . 16,862,104 16,711,780
Deferred pension cost. . . . . . . . . . . . 197,502 225,060
Excess of cost over net assets of acquired
subsidiary, less accumulated amortization
of $1,398,000 and $1,140,000 . . . . . . . 15,789,565 12,126,709
Other assets including patents, less
amortization . . . . . . . . . . . . . . . 714,767 448,201
$84,126,625 $91,162,272
=========== ===========
(See accompanying notes to the consolidated financial statements)
-4-
SELAS CORPORATION OF AMERICA
Consolidated Balance Sheets
Liabilities and Shareholders' Equity
June 30, December 31,
1997 1996
(Unaudited) (Audited)
Current liabilities
Notes payable . . . . . . . . . . . . . $ 374,818 $ 583,767
Current maturities of long-term debt . . 2,569,842 2,271,830
Accounts payable . . . . . . . . . . . . 17,223,591 20,169,143
Federal, state and foreign income taxes . 1,337,389 926,823
Customers' advance payments on contracts. 1,875,236 4,854,880
Guarantee obligations and estimated future
costs of service . . . . . . . . . . . 1,968,461 1,725,690
Other accrued liabilities . . . . . . . . 5,994,086 10,758,185
Total current liabilities . . . . . . 31,343,423 41,290,318
Long-term debt . . . . . . . . . . . . 8,239,918 6,836,593
Pension plan obligation . . . . . . . . . 197,502 225,060
Other postretirement benefit obligations . 4,091,836 4,084,768
Deferred income taxes . . . . . . . . . . 1,148,589 1,084,057
Contingencies and commitments
Shareholders' equity
Common shares, $1 par; 10,000,000 shares
authorized; 5,576,124 and 5,553,624 shares
issued, respectively . . . . . . . . . 5,576,124 5,553,624
Additional paid-in capital . . . . . . 11,735,403 11,660,807
Retained earnings . . . . . . . . . . . . 21,753,469 19,672,731
Foreign currency translation adjustment . 422,298 1,136,251
Less: 363,564 common shares held in
treasury, at cost . . . . . . . . . . . (381,937) (381,937)
Total shareholders' equity . . . . . 39,105,357 37,641,476
$84,126,625 $91,162,272
=========== ===========
(See accompanying notes to the consolidated financial statements)
-5-
SELAS CORPORATION OF AMERICA
Consolidated Statements of Operations
(Unaudited)
Three Months Ended
June 30, June 30,
1997 1996
Sales, net $27,101,464 $25,460,255
Operating costs and expenses
Cost of sales 20,618,366 20,168,356
Selling, general and
administrative expenses 3,855,716 3,756,646
Operating income 2,627,382 1,535,253
Interest (expense) (286,489) (245,772)
Interest income 77,097 69,929
Other income (expense), net 46,441 5,789
Income before income taxes 2,464,431 1,365,199
Income taxes 1,085,541 558,153
Net income $ 1,378,890 $ 807,046
=========== ===========
Earnings per share
Primary
Income per common and common
equivalent share $0.26 $0.15
=========== ===========
Weighted average common shares
outstanding 5,345,000 5,251,000
Fully diluted
Income per common and common
equivalent share $0.26 $0.15
=========== ===========
Weighted average common shares
outstanding 5,380,000 5,253,000
(See accompanying notes to the consolidated financial statements)
-6-
SELAS CORPORATION OF AMERICA
Consolidated Statements of Operations
(Unaudited)
Six Months Ended
June 30, June 30,
1997 1996
Sales, net $58,006,474 $44,030,798
Operating costs and expenses
Cost of sales 45,078,616 34,011,228
Selling, general and
administrative expenses 7,897,675 7,427,212
Operating income 5,030,183 2,592,358
Interest (expense) (517,611) (494,237)
Interest income 135,488 136,641
Other income (expense), net (303,536) 30,162
Income before income taxes 4,344,524 2,264,924
Income taxes 1,803,341 883,827
Net income $ 2,541,183 $ 1,381,097
=========== ===========
Earnings per share
Primary
Income per common and common
equivalent share $0.47 $0.26
=========== ===========
Weighted average common shares
outstanding 5,353,000 5,241,000
Fully diluted
Income per common and common
equivalent share $0.47 $0.26
=========== ===========
Weighted average common shares
outstanding 5,379,000 5,253,000
(See accompanying notes to the consolidated financial statements)
-7-
SELAS CORPORATION OF AMERICA
Consolidated Statements of Cash Flows
(Unaudited)
Six Months Ended
June 30, June 30,
1997 1996
Cash flows from operating activities:
Net income $2,541,183 $ 1,381,097
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 1,659,995 1,424,068
Equity in (income) loss of unconsolidated
affiliate (1,747) 47,319
(Gain) loss on sale of property and
equipment 6,105 (707)
Deferred taxes (216,114) (243,141)
Changes in operating assets and liabilities,
net of acquisitions:
(Increase) decrease in accounts
receivable 10,608,915 (4,364,392)
(Increase) in inventories (983,935) (817,880)
(Increase) decrease in other assets (193,731) 520,931
Increase (decrease) in accounts payable (162,679) 5,864,414
Increase (decrease) in accrued expenses (4,266,659) 2,442,663
Increase (decrease) in customer advances (2,115,392) 3,436,836
Increase in other liabilities 272,523 74,026
Net cash provided by operating
activities 7,148,464 9,765,234
Cash flows from investing activities:
Purchases of property, plant and equipment (1,622,160) (921,316)
Proceeds from sale of property and equipment 8,052 24,172
Receipt of dividend from unconsolidated
affiliate -- 16,742
Acquisition of subsidiary company, net
of cash acquired (5,151,620) --
Net cash (used) by investing
activities (6,765,728) (880,402)
Cash flows from financing activities:
Proceeds from borrowings to acquire
subsidiary company 3,500,000 --
Repayments of short-term bank borrowings (146,525) (1,550,343)
Repayments of long-term debt (1,456,716) (1,156,406)
Proceeds from exercise of stock options 84,843 --
Payment of dividends (460,445) (415,205)
Net cash provided (used) by
financing activities 1,521,157 (3,121,954)
Effect of exchange rate changes on cash (710,216) (168,937)
Net increase in cash and cash equivalents 1,193,677 5,593,941
Cash and cash equivalents, beginning of
period 8,343,820 3,912,364
Cash and cash equivalents, end of period $9,537,497 $9,506,305
========= ==========
(See accompanying notes to the consolidated financial statements)
-8-
SELAS CORPORATION OF AMERICA
Consolidated Statement of Shareholders' Equity
Six Months Ended June 30, 1997
(Unaudited)
Common Stock Additional
Number of Paid-In
Shares Amount Capital
Balance, January 1, 1997 5,553,624 $ 5,553,624 $11,660,807
Net income
Exercise of stock options 22,500 22,500 74,596
Cash dividends paid
($.09 per share)
Translation (loss)
Balance, June 30, 1997 5,576,124 $ 5,576,124 $11,735,403
========== =========== ===========
Foreign
Currency
Retained Translation
Earnings Adjustment
Balance, January 1, 1997 $19,672,731 $ 1,136,251
Net income 2,541,183
Exercise of stock options
Cash dividends paid
($.09 per share) (460,445)
Translation (loss) (713,953)
Balance, June 30, 1997 $21,753,469 $ 422,298
=========== ===========
Total
Treasury Shareholders'
Stock Equity
Balance, January 1, 1997 $ (381,937) $37,641,476
Net income 2,541,183
Exercise of stock options 97,096
Cash dividends paid
($.09 per share) (460,445)
Translation (loss) (713,953)
Balance, June 30, 1997 $ (381,937) $39,105,357
=========== ===========
(See accompanying notes to the consolidated financial statements)
-9-
SELAS CORPORATION OF AMERICA
PART I - FINANCIAL INFORMATION
ITEM 1. Notes to Consolidated Financial Statements (Unaudited)
1. In the opinion of management, the accompanying consolidated
condensed financial statements contain all adjustments (consisting
of normal recurring adjustments) necessary to present fairly Selas
Corporation of America's consolidated financial position as of June
30, 1997 and December 31, 1996, and the consolidated results of its
operations for the three and six months ended June 30, 1997 and
1996 and consolidated statements of shareholders' equity and cash
flows for the six months then ended.
2. The accounting policies followed by the Company are set forth in
note 1 to the Company's financial statements in the 1996 Selas
Corporation of America Annual Report on Form 10-K.
3. Inventories consist of the following:
June 30, December 31,
1997 1996
Raw material $2,995,555 $2,601,927
Work-in-process 2,400,585 1,749,371
Finished products and
components 4,018,362 4,082,224
Total $9,414,502 $8,433,522
========== ==========
4. Income Taxes
Consolidated income taxes for the six month periods ended June 30,
1997 and 1996 are $1,803,000 and $884,000 which result in effective
tax rates of 41.5% and 39.0%, respectively. The rate of tax in
relation to pre-tax income in 1997 has been impacted by the
settlement of a tax issue at one of the Company's European
subsidiaries in the amount of approximately $80,000.
-10-
SELAS CORPORATION OF AMERICA
PART I - FINANCIAL INFORMATION
ITEM 1. Notes to Consolidated Financial Statements (Unaudited)-
(Continued)
5. Legal Proceedings
The Company is a defendant along with a number of other parties in
approximately 155 lawsuits as of December 31, 1996 (112 as of
December 31, 1995) alleging that plaintiffs have or may have
contracted asbestos-related diseases as a result of exposure to
asbestos products or equipment containing asbestos sold by one or
more named defendants. Due to the noninformative nature of the
complaints, the Company does not know whether any of the complaints
state valid claims against the Company. The Company is also one of
approximately 500 defendants in a class action on behalf of
approximately 2700 present or former employees of a Texas steel mill
alleging that products supplied by the defendants created a
poisonous atmosphere that caused unspecified physical harm. These
cases are being defended by one or more of the Company's insurance
carriers presently known to be "at risk." Through October 1993, the
legal costs of defense of the asbestos and steel mill cases were
shared among the insurance carriers (92%) and the Company (8%). The
lead insurance carrier settled a number of the cases in 1993 and
requested that the Company pay a portion of the settlement amount.
The Company declined to do so because no such payment is required by
the express terms of the policies. The lead carrier then purported
in October 1993 to abrogate the arrangement under which the defense
costs had been shared, and the Company responded by tendering all of
the cases to the lead carrier and demanding that the lead carrier
honor its obligations under its policies to pay 100% of the costs of
defense and 100% of all settlements and judgments up to the policy
limits. The lead carrier has settled approximately 17 and 98
claims in 1996 and 1995, respectively, with no request for the
Company to participate in any settlement. The lead carrier has
informed the Company that the primary policy for the period July 1,
1972 - July 1, 1975 has been exhausted and that the lead carrier
will no longer provide a defense under that policy. The Company has
requested that the lead carrier substantiate this situation. The
Company has contacted representatives of the Company's excess
insurance carrier for some or all of this period. The Company does
not believe that the asserted exhaustion of the primary insurance
coverage for this period will have a material adverse effect on the
financial condition, liquidity, or results of operations of the
Company.
In 1995, a dispute which was submitted to arbitration, arose under a
contract between a customer and a subsidiary of the Company.
Substantial claims were asserted against the subsidiary Company
under the terms of the contract. The Company recorded revenue of
approximately $1,400,000 in 1994 and has a current billed receivable
of $140,000.
-11-
SELAS CORPORATION OF AMERICA
PART I - FINANCIAL INFORMATION
ITEM 1. Notes to Consolidated Financial Statements (Unaudited)-
(Continued)
5. Legal Proceedings - (Continued)
The Company is also involved in other lawsuits arising in the normal
course of business. While it is not possible to predict with
certainty the outcome of these matters, management is of the opinion
that the disposition of these lawsuits and claims will not materially
affect the Company's consolidated financial position, liquidity, or
results of operations.
6. Statements of Cash Flows
Supplemental disclosures of cash flow information:
Six Months Ended
June 30, June 30,
1997 1996
Interest received . . . . . . . $ 121,974 $ 165,042
Interest paid . . . . . . . . . $ 433,791 $ 452,139
Income taxes paid . . . . . . . $ 867,942 $ 864,387
7. Accounts Receivable
At June 30, 1997, the Company had $1,769,896 of trade accounts
receivable due from the major U.S. automotive manufacturers and
$3,258,686 of trade accounts receivable due from hearing aid
manufacturers. The Company also had $15,294,107 in receivables from
long-term contracts for customers in the steel industry in North
America, Europe and Asia.
8. Earnings Per Common and Common Equivalent Share
Earnings per common and common equivalent share are computed based on
the weighted average number of shares outstanding each quarter,
giving effect to the exercise of outstanding stock options, where
dilutive.
On April 22, 1997, the Board of Directors declared a three-for-two
stock split of the Company's outstanding common stock pursuant to
which 1,851,213 shares were issued. Shareholders of record on June
10, 1997 received one additional share for every two common shares
held. The effect of this transaction was to reduce additional paid-
in capital by $1,851,213 with a corresponding increase in common
stock which has been retroactively recorded. All common and earnings
per share data in these financial statements and footnotes has been
retroactively recorded.
-12-
SELAS CORPORATION OF AMERICA
PART I - FINANCIAL INFORMATION
ITEM 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Consolidated net sales increased to $27.1 million and $58 million for
the three and six months ended June 30, 1997 compared to $25.5 million
and $44 million for the same periods ended June 30, 1996. Net sales for
the heat processing segment were $15 million for the three months ended
June 30, 1997 compared to $15.3 for the same period in 1996 and
increased to $34.6 million for the six months ended June 30, 1997
compared to $23.7 million for the same period in 1996. Sales for the
current quarter were impacted by the strength of the U.S. dollar
compared to the French franc as more than half of this segment's sales
are through our French subsidiary. The higher level of sales for the
six months are due to an increase in orders for large engineered system
contracts received at the end of 1996 and in the first quarter of 1997
compared to the beginning of 1996. Sales and earnings of large
engineered system contracts are recognized on a percentage-of-
completion method. The sales backlog for the heat processing segment at
June 30, 1997 is $28.5 million compared to $49.5 million at June 30,
1996. Net sales for the precision electromechanical and plastics
components segment increased to $8.4 million and $16 million for the
three and six month periods ended June 30, 1997 compared to $6.9 million
and $13.5 million for the same periods in 1996. The February, 1997
acquisition of RTI Electronics (formerly Rodan Division of Ketema)
("RTIE") accounted for most of the sales increase, as their sales were
$1.7 million and $2.4 million for the three and six months ended June
30, 1997. Net sales for the tire holders, lifts and related products
segment increased to $3.6 million and $7.4 million for the three and six
months ended June 30, 1997 compared to $3.3 million and $6.8 million for
the same periods in 1996. The higher sales are due to increased unit
sales of tire lifts to the automotive industry.
The Company's gross profit margin as a percentage-of-sales increased to
24.1% for the three months ended June 30, 1997 compared to 20.8% for the
same period in 1996 and decreased to 22.4% for the six months ended June
30, 1997 compared to 22.8% for the six months ended June 30, 1996.
Gross profit margins for the Company's heat processing segment increased
to 20% and 17.5% for the three and six months ended June 30, 1997
compared to 13.6% and 16% for the same period in 1996. The lower gross
profit margins in 1996 are due to one contract which resulted in a loss
that was recognized in 1996, reducing the gross profit margins for that
year. Gross profit margins in the heat processing segment vary markedly
from contract to contract, depending on customer specifications and
other conditions related to the contract. Gross profit margins for the
precision electromechanical and plastics component segment decreased to
34% and 35.8% for the three and six month period ended June 30, 1997
compared to 39.5% and 40% for the same periods in 1996. The decrease in
gross profit margins is due
-13-
SELAS CORPORATION OF AMERICA
PART I - FINANCIAL INFORMATION
ITEM 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
to a shift in the mix of products sold in 1997 that carry lower profit
margins than the products sold in 1996 and the gross profit margins of
RTIE (acquired in February, 1997) are lower than the segment's
historical gross profit margins. The Company's gross profit margins for
the tire holder, lifts and related products segment increased to 18.2%
and 16.7% for the three and six month periods ended June 30, 1997
compared to 15.9% and 12.6% for the same periods in 1996. The higher
gross profit margins are due to increased units sold and improved
manufacturing efficiencies.
Selling, general and administrative expenses increased to $3.9 million
and $7.9 million for the three and six months ended June 30, 1997
compared to $3.8 million and $7.4 million for the same periods in 1996.
The increase of $.5 million for the year-to-date is attributed primarily
to higher selling expense due to the higher sales and the acquisition of
RTIE in February, 1997.
Other income (expense) includes losses on foreign exchange of $57,000
and $229,000 for the three and six months ended June 30, 1997 compared
to gains of $18,000 and $29,000 for the same period in 1996.
Consolidated income taxes for the six month periods ended June 30, 1997
and 1996 are $1,803,000 and $884,000 which result in effective tax rates
of 41.5% and 39.0%, respectively. The rate of tax in relation to pre-
tax income in 1997 has been impacted by the settlement of a tax issue at
one of the Company's European subsidiaries in the amount of
approximately $80,000.
Consolidated net income for the three and six month periods ended June
30, 1997 is $1,379,000 and $2,541,000 compared to $807,000 and
$1,381,000 for the same periods in 1996. The higher earnings are a
result of higher sales and higher gross profit margins for the quarter
and higher sales, partially offset by slightly lower profit margins for
the six months ended in 1997 compared to 1996.
In February 1997, the Financial Accounting Standards Board issued
Statement 128, "Earnings Per Share", and Statement 129, "Disclosure of
Information about Capital Structure", whose provisions are effective for
the Company for fiscal years ending after December 15, 1997. Had the
Company determined earnings per share based on the provisions of
Statement 128 for the three and six months ended June 30, 1997, the
results would have been presented as indicated below:
Three Months Six Months
Ended Ended
June 30, 1997 June 30, 1997
Earnings per common share $ .26 $ .49
Earnings per common share
assuming dilution $ .26 $ .48
-14-
SELAS CORPORATION OF AMERICA
PART I - FINANCIAL INFORMATION
ITEM 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
Liquidity and Capital Resources
Consolidated net working capital decreased to $18.7 million at June 30,
1997 from $19.8 million at December 31, 1996. The decrease is due
primarily to the acquisition of RTIE in February, 1997 and the payment
of dividends of $.5 million, partially offset by the net earnings for
the past six months. The major changes in the components of working
capital are lower receivables by $13.4 million, lower current
liabilities of $9.9 million, higher cash balances of $1.2 million and
higher inventories of $1 million.
The Company believes that its present working capital position, combined
with funds expected to be generated from operations and the available
borrowing capacity through its revolving credit loan facilities, will be
sufficient to meet its anticipated cash requirements for operating needs
and capital expenditures for 1997.
-15-
SELAS CORPORATION OF AMERICA
PART II - OTHER INFORMATION
ITEM 4. Submission of Matters to a Vote of Security Holders
The 1997 Annual Meeting of Shareholders of the Company was held on April
22, 1997.
At the 1997 Annual Meeting:
(i) Messrs. Frederick L. Bissinger and Roy C. Carriker were re-
elected to the Board of Directors of the Company for terms expiring at
the 2000 Annual Meeting. In such election, 2,803,781 votes were cast
for Mr. Bissinger and 2,808,081 votes were cast for Dr. Carriker. Under
Pennsylvania law, votes cannot be cast against a candidate. Proxies
filed at the 1997 Annual Meeting by the holders of 257,782 shares
withheld authority to vote for Mr. Bissinger and those filed by the
holders of 253,482 shares withheld authority to vote for Dr. Carriker.
No "broker nonvotes" were received at the 1997 Annual Meeting with
respect to the election of directors;
(ii) 3,045,270 shares were voted in favor of ratifying the
appointment of KPMG Peat Marwick LLP as the Company's auditors for 1997
and 15,834 shares were voted against such proposal. Proxies filed at
the 1997 Annual Meeting by the holders of 459 shares instructed the
proxy holders to abstain from voting on such proposal. No "broker
nonvotes" were received at the 1997 Annual Meeting with respect to this
proposal.
ITEM 6. Exhibits and Reports on Form 8-K
(a) Reports on Form 8-K - There were no reports on Form 8-K filed
for the six months ended June 30, 1997.
-16-
SELAS CORPORATION OF AMERICA
SIGNATURE
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.
SELAS CORPORATION OF AMERICA
(Registrant)
Date: August 12, 1997
Robert W. Ross
Vice President and
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
financial statements of Selas Corporation of America for the six months
ended June 30, 1997 and is qualified in its entirety by reference to
such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 9,537,497
<SECURITIES> 0
<RECEIVABLES> 29,015,904
<ALLOWANCES> 703,126
<INVENTORY> 9,414,502
<CURRENT-ASSETS> 50,027,690
<PP&E> 33,115,771
<DEPRECIATION> 16,253,667
<TOTAL-ASSETS> 84,126,625
<CURRENT-LIABILITIES> 31,343,423
<BONDS> 8,239,918
0
0
<COMMON> 5,576,124
<OTHER-SE> 33,529,233
<TOTAL-LIABILITY-AND-EQUITY> 84,126,625
<SALES> 58,006,474
<TOTAL-REVENUES> 58,006,474
<CGS> 45,078,616
<TOTAL-COSTS> 45,078,616
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 9,883
<INTEREST-EXPENSE> 517,611
<INCOME-PRETAX> 4,344,524
<INCOME-TAX> 1,803,341
<INCOME-CONTINUING> 2,541,183
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,541,183
<EPS-PRIMARY> 0.47
<EPS-DILUTED> 0.47
</TABLE>
