UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For The Quarterly Period Ended June 2, 1996
Commission File No. 0-3362
SI HANDLING SYSTEMS, INC.
- - --------------------------------------------------------------------------------
(Exact Name Of Registrant As Specified In Its Charter)
Pennsylvania 22-1643428
(State Or Other Jurisdiction Of (I.R.S. Employer
Incorporation Or Organization) Identification No.)
600 Kuebler Road, Easton, PA 18040
(Address Of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: 610-252-7321
Indicate by checkmark 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. Yes X No
Number of shares of common stock, par value $1.00 per share, outstanding as of
June 2, 1996: 2,448,696
<PAGE>
- 2 -
PART I - FINANCIAL INFORMATION
------------------------------
ITEM 1. FINANCIAL STATEMENTS
- - ------- --------------------
SI HANDLING SYSTEMS, INC.
Balance Sheets
(In Thousands, Except Share Data)
<TABLE>
<CAPTION>
June 2, March 3,
Assets 1996 1996
- - ------ ---------- -------
<S> <C> <C>
Current assets:
Cash and cash equivalents, principally
time deposits $ 1,575 1,335
Short-term investments 781 2,414
------- -------
Total cash, cash equivalents, and
short-term investments 2,356 3,749
------- -------
Receivables:
Trade 3,513 2,505
Notes and other receivables 719 528
------- -------
Total receivables 4,232 3,033
------- -------
Costs and estimated earnings in excess
of billings 1,858 1,803
Inventories:
Raw materials 910 963
Finished goods and work-in-process 811 799
------- -------
Total inventories 1,721 1,762
------- -------
Deferred income tax benefits 229 229
Prepaid expenses and other current assets 130 141
------- -------
Total current assets 10,526 10,717
------- -------
Property, plant and equipment, at cost:
Land 27 27
Buildings and improvements 3,276 3,276
Machinery and equipment 3,435 3,331
------- -------
6,738 6,634
Less: accumulated depreciation 5,540 5,461
------- -------
Net property, plant and equipment 1,198 1,173
------- -------
Deferred income tax benefits 71 71
Investment in joint venture 560 530
Other assets, at cost less accumulated
amortization of $59 in 1997 and $57
in 1996 77 79
------- -------
Total assets $12,432 12,570
======= =======
</TABLE>
See accompanying notes to financial statements.
<PAGE>
- 3 -
ITEM 1. FINANCIAL STATEMENTS (CONTINUED)
- - ------- --------------------------------
SI HANDLING SYSTEMS, INC.
Balance Sheets
(In Thousands, Except Share Data)
<TABLE>
<CAPTION>
June 2, March 3,
Liabilities and Stockholders' Equity 1996 1996
- - ------------------------------------ --------- -------
<S> <C> <C>
Current liabilities:
Current installments of long-term debt $ 20 20
Accounts payable 1,608 1,542
Customers' deposits and billings in excess
of costs and estimated earnings 1,399 1,112
Accrued salaries, wages, and commissions 566 929
Income taxes payable 211 275
Accrued royalties payable 244 593
Liabilities and deferred credits associated
with the AGV Asset Purchase Agreement 72 80
Accrued other liabilities 821 659
------- -------
Total current liabilities 4,941 5,210
------- -------
Long-term liabilities:
Long-term debt, excluding current installments:
Mortgages payable 43 49
------- -------
Total long-term debt 43 49
------- -------
Deferred compensation 94 101
------- -------
Total long-term liabilities 137 150
------- -------
Commitments and contingencies
Stockholders' equity:
Common stock, $1 par value; authorized
5,000,000 shares; issued 2,448,696 shares
in 1997 and 2,441,341 shares in 1996 2,449 2,441
Additional paid-in capital 3,638 3,613
Retained earnings 1,267 1,156
------- -------
Total stockholders' equity 7,354 7,210
------- -------
Total liabilities and stockholders' equity $12,432 12,570
======= =======
</TABLE>
See accompanying notes to financial statements.
<PAGE>
- 4 -
ITEM 1. FINANCIAL STATEMENTS (CONTINUED)
- - ------- --------------------------------
SI HANDLING SYSTEMS, INC.
Statements of Operations
(In Thousands, Except Share And Per Share Data)
<TABLE>
<CAPTION>
Three Months Ended
---------------------
June 2, May 28,
1996 1995
------- -------
<S> <C> <C>
Net sales $5,631 6,097
Cost of sales 3,941 4,504
------ ------
Gross profit on sales 1,690 1,593
------ ------
Selling, general, and
administrative expenses 1,330 1,159
Product development costs 80 105
Interest expense 3 4
Interest income (45) (25)
Equity in income of joint venture (30) (24)
Other expense (income), net (64) (41)
------ ------
1,274 1,178
------ ------
Earnings before income taxes 416 415
Income tax expense 31 65
------ ------
Net earnings $ 385 350
====== ======
Net earnings per common share
and common share equivalent* $ .16 .14
====== ======
Dividends per share** $ .10 .07
====== ======
<FN>
* On July 18, 1995, the Board of Directors declared a three-for-two stock
split that was distributed on August 11, 1995 to stockholders of record on
July 31, 1995. Earnings per share for all periods presented reflect the
three-for-two stock split and are based on the weighted average number of
shares outstanding and equivalent shares from dilutive stock options, which
were 2,455,000 and 2,478,000, respectively, at June 2, 1996 and May 28,
1995.
** Dividends per share for the three months ended May 28, 1995 were adjusted
for the three-for-two stock split that was distributed on August 11, 1995 to
stockholders of record on July 31, 1995.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
- 5 -
ITEM 1. FINANCIAL STATEMENTS (CONTINUED)
- - ------- --------------------------------
SI HANDLING SYSTEMS, INC.
Statements of Cash Flows
(In Thousands)
<TABLE>
<CAPTION>
Three Months Ended
---------------------
June 2, May 28,
1996 1995
---------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net earnings $ 385 350
Adjustments to reconcile net earnings
to net cash provided by (used in)
operating activities:
Depreciation of plant and equipment 79 112
Amortization of intangibles 2 3
Equity in income of joint venture (30) (24)
Change in operating assets and liabilities:
Receivables (1,199) 3,036
Costs and estimated earnings in
excess of billings (55) (722)
Inventories 41 (63)
Deferred income tax benefits -- (80)
Prepaid expenses and other
current assets 11 148
Accounts payable 66 (991)
Customers' deposits and billings
in excess of costs and estimated
earnings 287 667
Accrued salaries, wages, and
commissions (363) (15)
Income taxes payable (64) 145
Accrued royalties payable (349) (332)
Liabilities and deferred credits
associated with the AGV
Asset Purchase Agreement (8) 100
Accrued other liabilities 162 (24)
Deferred compensation (7) (7)
------- -------
Net cash provided by (used in) operating
activities (1,042) 2,303
------- -------
Cash flows from investing activities:
Sales of short-term investments 1,633 --
Additions to property, plant and equipment (104) (18)
------- -------
Net cash provided by (used in) investing
activities 1,529 (18)
------- -------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
- 6 -
ITEM 1. FINANCIAL STATEMENTS (CONTINUED)
- - ------- --------------------------------
SI HANDLING SYSTEMS, INC.
Statements of Cash Flows (Continued)
(In Thousands)
<TABLE>
<CAPTION>
Three Months Ended
-----------------------
June 2, May 28,
1996 1995
---------- ---------
<S> <C> <C>
Cash flows from financing activities:
Sale of treasury stock in connection with
employee stock option plan -- 1
Sale of common shares in connection
with employee stock option plan 3 --
Repayment of long-term debt, including
current portion (6) (7)
Increase in (repayment of) loan
payable to bank -- (500)
Dividends paid on common stock (244) --
------ ------
Net cash used by financing
activities (247) (506)
------ ------
Increase in cash and cash equivalents 240 1,779
Cash and cash equivalents, beginning
of period 1,335 571
------ ------
Cash and cash equivalents, end of
period $1,575 2,350
====== ======
Supplemental disclosures of cash flow
information:
Cash paid during the period for:
Interest $ 1 5
====== ======
Income taxes $ 95 --
====== ======
Supplemental disclosure of noncash financing activities:
Cash dividends declared in May but
payable in June $ -- 164
====== ======
Issuance of 10,603 common shares
in exchange for 3,865 common
shares delivered to the Company
by officers in connection with the
employee incentive stock option plan $ 30 --
====== ======
</TABLE>
See accompanying notes to financial statements.
<PAGE>
- 7 -
ITEM 1. FINANCIAL STATEMENTS (CONTINUED)
- - ------- --------------------------------
SI HANDLING SYSTEMS, INC.
Notes To Financial Statements
Three Months Ended June 2, 1996 and May 28, 1995
(1) The information contained in this 10-Q report is unaudited and is subject
to year-end adjustments and audit. However, in the opinion of management,
the interim financial statements furnished reflect all adjustments and
accruals which are necessary to a fair statement of results for the interim
periods presented.
SI Handling Systems, Inc. ("SI" or the "Company") and Automated
Prescription Systems, Inc. ("APS") are co-venturers in a joint venture named
SI/BAKER, INC. ("SI/BAKER" or the "joint venture"). The joint venture draws upon
the automated materials handling systems experience of SI and the automated pill
counting and dispensing products of APS to provide automated pharmacy systems.
Each member company contributed $100,000 in capital to fund the joint venture.
The joint venture designs and installs computer controlled, fully
automated, integrated systems for managed care pharmacy operations. The joint
venture's systems are viewed as labor saving devices which address the issues of
improved productivity and cost reduction. Systems can be expanded as customers'
operations grow and they may be integrated with a wide variety of components to
meet specific customer needs.
Schedule A contains the SI/BAKER, INC. financial statements. The
information contained in the SI/BAKER, INC. financial statements is unaudited
and is subject to year-end adjustments and audit. However, in the opinion of
management, the interim financial statements furnished reflect all adjustments
and accruals which are necessary to a fair statement of results for the interim
periods presented.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
- - ------- -----------------------------------------------------------
AND RESULTS OF OPERATIONS
-------------------------
Liquidity and Capital Resources
- - -------------------------------
The Company's cash and cash equivalents increased to $1,575,000 during
fiscal 1997 from $1,335,000 at the end of fiscal 1996. The increase resulted
from cash proceeds of $1,633,000 from the sale of short-term investments and
$3,000 from the sale of common stock in connection with the employee stock
option plan. Partially offsetting the increase in cash and cash equivalents were
cash used by operating activities totaling $1,042,000, repayments of long-term
debt of $6,000, purchases of equipment of $104,000, and the payment of $244,000
in cash dividends to stockholders. Funds provided by operating activities during
the first three months of fiscal 1996 were $2,303,000.
<PAGE>
- 8 -
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
- - ------- -------------------------------------------------
CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
-----------------------------------------------
SI HANDLING SYSTEMS, INC.
Liquidity and Capital Resources (Continued)
- - -------------------------------
The Company has a $5,000,000 committed revolving credit facility which is
secured by a lien position on accounts receivable, land, and buildings and
contains various restrictive covenants relating to additional indebtedness,
asset acquisitions or dispositions, and maintenance of certain financial ratios.
The Company was in compliance with all covenants during the first three months
of fiscal 1997. The term of the original arrangement was for three years with an
expiration date of July 31, 1996; however, effective March 1, 1996, the
Company's principal bank amended certain covenants to allow the Company greater
operating flexibility and extended the expiration date of the revolving credit
facility to July 31, 1998. During the first three months of fiscal 1997, the
Company did not have any borrowings under the committed revolving credit
facility.
On May 15, 1996, SI/BAKER, INC. ("SI/BAKER") borrowed $2,000,000 from its
principal bank to fund short-term working capital requirements. The Company and
its joint venture partner, Automated Prescription Systems, Inc. ("APS"), each
guaranteed $1,000,000 of the borrowing. SI/BAKER repaid the $2,000,000
short-term debt on June 4, 1996. The Company and APS may guarantee future
borrowings of its joint venture Company if the circumstances surrounding the
borrowing transaction warrant the guarantee.
The Company anticipates that its financial resources, consisting of its
current assets, anticipated cash flow, and the available revolving credit
facility will adequately finance its operating requirements in the foreseeable
future.
The Company plans to consider expansion opportunities as they arise,
although ongoing operating results of the Company, the economics of the
expansion, and the circumstances justifying the expansion will be key factors in
determining the amount of resources the Company will devote to further
expansion. At this time, the Company does not have any material capital
commitments.
Results of Operations
- - ---------------------
Three Months Ended June 2, 1996 Versus Three Months Ended May 28,
- - -----------------------------------------------------------------
1995
- - ----
The Company's net earnings for the first three months of fiscal 1997 were
$385,000 compared to net earnings of $350,000 for the first three months of
fiscal 1996. Backlog at the end of the first quarter of fiscal 1997 was
$10,921,000 with the majority of the backlog pertaining to Switch-Cart, Cartrac,
and Dispen-SI-matic contracts.
<PAGE>
- 9 -
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
- - ------- -------------------------------------------------
CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
-----------------------------------------------
SI HANDLING SYSTEMS, INC.
Results of Operations
- - ---------------------
Three Months Ended June 2, 1996 Versus Three Months Ended May 28,
- - -----------------------------------------------------------------
1995 (Continued)
- - ----
Net sales of $5,631,000 for the first three months of fiscal 1997 decreased
7.6% compared to net sales of $6,097,000 for the first three months of fiscal
1996. The sales decrease in the first three months of fiscal 1997 is attributed
primarily to a smaller backlog of orders entering fiscal 1997 ($10,488,000
versus a $16,665,000 backlog beginning fiscal 1996). The largest decline
occurred in the Cartrac product line whereby during the first three months of
fiscal 1996 a significant amount of progress relating to two large automotive
contracts, subsequently completed by the end of fiscal 1996, resulted in
substantial revenues. Also, the Company's Automated Guided Vehicle Systems
("AGVS") and Order Selection Systems product lines experienced declines in sales
for the first three months of fiscal 1997 when compared to the prior year
comparable period. The decline in AGVS sales for the first three months of
fiscal 1997 is due to the Company's reduced emphasis on the AGVS product line,
with selling efforts related to the product currently confined to the parts and
service business. Contributing to the lower beginning backlog, and hence sales
in the first quarter of fiscal 1997, are delays by prospective customers,
particularly those interested in Order Selection Systems, in signing contracts
due to expanding project scope and to merger and acquisition interference.
Partially offsetting the declines mentioned above was an increase in sales of
the Company's Switch-Cart product, principally relating to performance on
contracts received during the fourth quarter of fiscal 1996. The Company was
also the recipient of a $2,400,000 Switch-Cart contract at the end of the first
quarter of fiscal 1997. This Switch-Cart contract will enhance automated
roll-handling capabilities for a customer in the newspaper industry and will
generate revenue for the Company throughout the remainder of the fiscal year.
Gross profit as a percentage of sales was 30.0% for the first three months
of fiscal 1997 compared to 26.1% for the first three months of fiscal 1996. The
increase in the gross profit percentage for the first three months of fiscal
1997 was primarily attributable to the favorable performance on several
contracts initiated in prior fiscal years that were completed during the first
quarter of fiscal 1997 as well as to a higher content in contracts currently in
progress of proprietary product whereby margins are higher than contracts
containing a high degree of ancillary products. Also contributing to the lower
gross profit percentage in the fiscal 1996 comparable period were primarily two
factors: difficulties in executing and concluding several AGVS contracts as
additional costs became necessary to meet contractual throughput and durability
requirements, and higher costs associated with first-time design inefficiencies
relating to the Company's new small parcel sortation system aimed at
improvements to mail order distribution operations.
<PAGE>
- 10 -
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
- - ------- ---------------------------------------------------------------
RESULTS OF OPERATIONS (CONTINUED)
---------------------
SI HANDLING SYSTEMS, INC.
Results of Operations
- - ---------------------
Three Months Ended June 2, 1996 Versus Three Months Ended May 28,
- - -----------------------------------------------------------------
1995 (Continued)
- - ----
Selling, general, and administrative expenses of $1,330,000 were higher by
$171,000 in the first three months of fiscal 1997 than in the comparable fiscal
1996 period. The increase in selling, general, and administrative expenses is
due primarily to costs associated with product promotion and sales efforts in
response to increased quoting activities and aimed at expanding the Company's
customer base of business.
Product development costs of $80,000 were lower by $25,000 in the first
three months of fiscal 1997 than in the comparable fiscal 1996 period.
Development programs in the first three months of fiscal 1997 included
improvements to the Order Selection product line, with particular emphasis aimed
at Dispen-SI-matic and Pick-to-Light Systems. Development programs in the first
three months of fiscal 1996 included improvements to the Order Selection and
Sortation product lines, with particular emphasis aimed at Pick-to-Light and
Small Parcel Sortation Systems.
Interest income of $45,000 was higher by $20,000 in the first three months
of fiscal 1997 than in the comparable fiscal 1996 period. The increase in
interest income is primarily attributable to the higher level of funds available
for short-term investments during the first three months of fiscal 1997.
Equity in income of joint venture represented the Company's proportionate
share of its investment in SI/BAKER, INC. which is being accounted for under the
equity method. The favorable variance for the first three months of fiscal 1997
in the equity in income of joint venture was attributable to SI/BAKER's growth
in revenues and gross profit percentage reduced by increased royalty costs,
product development costs, and selling, general, and administrative expenses,
including accrued legal costs associated with the patent infringement
litigation.
The favorable variance in other expense (income), net, is primarily
attributable to an increase in royalty income related to the SI/BAKER, INC.
joint venture.
The Company incurred income tax expense of $31,000 during the first three
months of fiscal 1997 compared to income tax expense of $65,000 in the
comparable fiscal 1996 period. Income tax expense for the first three months of
fiscal 1997 and 1996 were less than the statutory rate of 34% due to the
recognition of previously unrecognized deferred tax assets which are anticipated
to be realizable due to the current and projected profitability of the Company.
<PAGE>
- 11 -
SI HANDLING SYSTEMS, INC.
PART II - OTHER INFORMATION
---------------------------
ITEM 1. LEGAL PROCEEDINGS
- - ------- -----------------
On April 15, 1996, a competitor filed suit in the United States District
Court for the Northern District of Illinois against the Company, its SI/BAKER
joint venture, and APS alleging that certain of the products of SI/BAKER
infringe a patent held by the competitor. The competitor is seeking monetary
damages and a royalty related to future sales by SI/BAKER of its products. The
management of both the Company and SI/BAKER, supported by its legal counsel,
believe that SI/BAKER products do not infringe the competitor's patent, and it
is more likely than not that the Company and SI/BAKER will prevail if the matter
is adjudicated. The management of both the Company and SI/BAKER believe that the
ultimate resolution of this matter will not have a material adverse effect on
the Company and SI/BAKER whether resolved through adjudication or settlement.
The Company is presently engaged in certain other legal proceedings besides
the litigation noted above which, in the opinion of the Company counsel, present
no significant risk of material loss to the Company.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
- - ------- --------------------------------
(a) Exhibit 27 - Financial Data Schedule
(b) No reports on Form 8-K were filed during the quarter ended June 2,
1996.
<PAGE>
- 12 -
SI HANDLING SYSTEMS, INC.
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.
SI HANDLING SYSTEMS, INC.
Barry V. Mack
Vice President - Finance
Dated: July 15, 1996
-------------
<PAGE>
- 13 -
SCHEDULE A
SI/BAKER, INC.
FINANCIAL STATEMENTS
MAY 31, 1996
<PAGE>
- 14 -
SI/BAKER, INC.
Balance Sheets
May 31, 1996 and February 29, 1995
(In Thousands, Except Share Data)
<TABLE>
<CAPTION>
May 31, February
1996 29, 1996
--------- --------
<S> <C> <C>
Assets
Current assets:
Cash and cash equivalents, principally
time deposits $ 236 327
Trade receivables 3,433 523
Costs and estimated earnings in
excess of billings 2,353 3,413
Inventories - purchased parts 47 16
Deferred income tax benefits 161 161
Prepaid expenses and other current
assets 34 5
------ ------
Total current assets 6,264 4,445
------ ------
Machinery and equipment, at cost 84 75
Less: accumulated depreciation 27 23
------ ------
Net machinery and equipment 57 52
------ ------
Equipment available for lease 487 478
------ ------
Total assets $6,808 4,975
====== ======
</TABLE>
<PAGE>
- 15 -
SI/BAKER, INC.
Balance Sheets
May 31, 1996 and February 29, 1995
(In Thousands, Except Share Data)
<TABLE>
<CAPTION>
May 31, February
1996 29, 1996
-------- --------
<S> <C> <C>
Liabilities and Stockholders' Equity
Current liabilities:
Notes payable to bank $2,000 --
Accounts payable:
Trade 710 798
Affiliated companies 816 1,080
------ ------
Total accounts payable 1,526 1,878
------ ------
Customers' deposits and billings in
excess of costs and estimated
earnings 1,229 1,007
Accrued salaries, wages, and
commissions 137 272
Income taxes payable 52 194
Accrued royalties payable 147 134
Accrued audit and legal fees 333 271
Accrued other liabilities 258 153
------ ------
Total current liabilities 5,682 3,909
------ ------
Deferred income tax liability 6 6
------ ------
Contingencies
Stockholders' equity:
Common stock, $1 par value; authorized
1,000 shares; issued 200 shares -- --
Additional paid-in capital 200 200
Retained earnings 920 860
------ ------
Total stockholders' equity 1,120 1,060
------ ------
Total liabilities and stockholders'
equity $6,808 4,975
====== ======
</TABLE>
<PAGE>
- 16 -
SI/BAKER, INC.
Statements of Operations
Three months Ended May 31, 1996 and 1995
(In Thousands)
<TABLE>
<CAPTION>
Three Months Ended
--------------------
May 31, May 31,
1996 1995
------- -------
<S> <C> <C>
Net sales $3,670 1,957
Cost of sales 2,969 1,591
------ ------
Gross profit on sales 701 366
------ ------
Selling, general, and administrative
expenses 314 185
Product development costs 136 36
Royalty expense, net 147 78
Interest income (6) (24)
Interest expense 7 --
Other (income) expense, net 3 3
------ ------
601 278
------ ------
Earnings before income taxes 100 88
Income tax expense 40 40
------ ------
Net earnings $ 60 48
====== ======
</TABLE>
<PAGE>
- 17 -
SI/BAKER, INC.
Statements of Cash Flows
Three months Ended May 31, 1996 and 1995
(In Thousands)
<TABLE>
<CAPTION>
Three Months Ended
-----------------------
May 31, May 31,
1996 1995
---------- -------
<S> <C> <C>
Cash flow from operating activities:
Net earnings $ 60 48
Adjustments to reconcile net earnings to
net cash used by operating activities:
Depreciation of machinery and
equipment 4 2
Changes in operating assets and
liabilities:
Trade receivables (2,910) (480)
Costs and estimated earnings
in excess of billings 1,060 191
Inventories - purchased parts (31) --
Prepaid expenses and other
current assets (29) (34)
Accounts payable (352) 178
Customers' deposits and
billings in excess of costs
and estimated earnings 222 199
Accrued salaries, wages, and
commissions (135) (58)
Income taxes payable (142) 6
Accrued royalties payable 13 (178)
Accrued audit and legal fees 62 --
Accrued other liabilities 105 (9)
------- -------
Net cash used by operating activities (2,073) (135)
------- -------
Cash flows used in investing activities:
Additions to machinery and equipment (9) (5)
Equipment available for lease (9) --
------- -------
Net cash used by investing activities (18) (5)
------- -------
Cash flows provided by financing activities:
Increase in notes payable to bank 2,000 --
------- -------
Decrease in cash and cash equivalents (91) (140)
Cash and cash equivalents, beginning of period 327 1,830
------- -------
Cash and cash equivalents, end of period $ 236 1,690
======= =======
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Income taxes $ 182 34
======= =======
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> THIS SCHEDULE CONTAINS
SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM FORM 10-Q FOR
THE QUARTER ENDED JUNE 2, 1996
AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<CIK> 0000090045
<NAME> SI HANDLING SYSTEMS, INC.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-02-1997
<PERIOD-END> JUN-02-1996
<CASH> 1,575
<SECURITIES> 781
<RECEIVABLES> 3,513
<ALLOWANCES> 0
<INVENTORY> 1,721
<CURRENT-ASSETS> 10,526
<PP&E> 6,738
<DEPRECIATION> 5,540
<TOTAL-ASSETS> 12,432
<CURRENT-LIABILITIES> 4,941
<BONDS> 43
0
0
<COMMON> 2,449
<OTHER-SE> 4,905
<TOTAL-LIABILITY-AND-EQUITY> 12,432
<SALES> 5,631
<TOTAL-REVENUES> 5,631
<CGS> 3,941
<TOTAL-COSTS> 3,941
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3
<INCOME-PRETAX> 416
<INCOME-TAX> 31
<INCOME-CONTINUING> 385
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 385
<EPS-PRIMARY> .16
<EPS-DILUTED> .16
</TABLE>
