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 1, 1997
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 1, 1997: 2,469,055.
---------
<PAGE>
- 2 -
PART I - FINANCIAL INFORMATION
------------------------------
ITEM 1. FINANCIAL STATEMENTS
- - ------- --------------------
SI HANDLING SYSTEMS, INC.
Balance Sheets
(In Thousands, Except Share Data)
<TABLE>
<CAPTION>
June March
Assets 1, 1997 2, 1997
- - ------ --------- ---------
<S> <C> <C>
Current assets:
Cash and cash equivalents, principally
time deposits $ 728 1,852
Short-term investments 1,472 3,741
------- -------
Total cash, cash equivalents, and
short-term investments 2,200 5,593
------- -------
Receivables:
Trade 3,786 3,900
Notes and other receivables 436 719
------- -------
Total receivables 4,222 4,619
------- -------
Costs and estimated earnings in excess
of billings 5,053 1,640
Inventories:
Raw materials 935 814
Finished goods and work-in-process 1,141 1,151
------- -------
Total inventories 2,076 1,965
------- -------
Deferred income tax benefits 372 372
Prepaid expenses and other current assets 208 173
------- -------
Total current assets 14,131 14,362
------- -------
Property, plant and equipment, at cost:
Land 27 27
Buildings and improvements 3,358 3,358
Machinery and equipment 3,792 3,717
------- -------
7,177 7,102
Less: accumulated depreciation 5,888 5,801
------- -------
Net property, plant and equipment 1,289 1,301
------- -------
Deferred income tax benefits 214 214
Investment in joint venture 710 606
Other assets, at cost less accumulated
amortization of $70 in 1998 and $67
in 1997 65 64
------- -------
Total assets $ 16,409 16,547
======= =======
</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 March
Liabilities and Stockholders' Equity 1, 1997 2, 1997
- - ------------------------------------ --------- ---------
<S> <C> <C>
Current liabilities:
Current installments of long-term debt $ 12 12
Accounts payable 2,415 2,056
Customers' deposits and billings in excess
of costs and estimated earnings 2,516 2,752
Accrued salaries, wages, and commissions 649 778
Income taxes payable 538 442
Accrued royalties payable 138 427
Accrued other liabilities 576 870
------- -------
Total current liabilities 6,844 7,337
------- -------
Long-term liabilities:
Long-term debt, excluding current installments:
Mortgages payable 31 35
------- -------
Total long-term debt 31 35
Deferred compensation 140 132
------- -------
Total long-term liabilities 171 167
------- -------
Stockholders' equity:
Common stock, $1 par value; authorized
5,000,000 shares; issued 2,469,055 shares
in 1998 and 2,460,306 shares in 1997 2,469 2,460
Additional paid-in capital 3,828 3,752
Retained earnings 3,097 2,831
------- -------
Total stockholders' equity 9,394 9,043
------- -------
Total liabilities and stockholders' equity $ 16,409 16,547
======= =======
</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 June
1, 1997 2, 1996
--------- ---------
<S> <C> <C>
Net sales $ 9,542 5,631
Cost of sales 7,322 3,941
------ ------
Gross profit on sales 2,220 1,690
------ ------
Selling, general and
administrative
expenses 1,487 1,330
Product development
costs 82 80
Interest expense 2 3
Interest income ( 67) ( 45)
Equity in income
of joint venture ( 104) ( 30)
Other income, net ( 93) ( 64)
------ ------
1,307 1,274
------ ------
Earnings before
income taxes 913 416
Income tax expense 357 31
------ ------
Net earnings $ 556 385
====== ======
Net earnings per common
share and common
share equivalents* $ .22 .16
====== ======
Dividends per share $ .10 .10
====== ======
<FN>
* Net earnings per share are based on the weighted average number of shares
outstanding and equivalent shares from dilutive stock options, which were
2,497,000 and 2,455,000, respectively, at June 1, 1997 and June 2, 1996.
</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, Except Share Data)
<TABLE>
<CAPTION>
Three Months Ended
----------------------
June June
1, 1997 2, 1996
--------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net earnings $ 556 385
Adjustments to reconcile net earnings
to net cash provided (used)
by operating activities:
Depreciation of plant and equipment 87 79
Amortization of intangibles 3 2
Equity in income of joint venture ( 104) ( 30)
Change in operating assets and liabilities:
Receivables 397 ( 1,199)
Costs and estimated earnings in
excess of billings ( 3,413) ( 55)
Inventories ( 111) 41
Prepaid expenses and other
current assets ( 35) 11
Other noncurrent assets ( 4) -
Accounts payable 359 66
Customers' deposits and billings
in excess of costs and estimated
earnings ( 236) 287
Accrued salaries, wages, and
commissions ( 129) ( 363)
Income taxes payable 96 ( 64)
Accrued royalties payable ( 289) ( 349)
Accrued other liabilities ( 294) 154
Deferred compensation 8 ( 7)
------ ------
Net cash used by operating activities ( 3,109) ( 1,042)
------ ------
Cash flows from investing activities:
Sales of short-term investments 3,741 1,633
Purchase of short-term investments ( 1,472) -
Additions to property, plant and equipment ( 75) ( 104)
------ ------
Net cash provided by investing activities 2,194 1,529
------ ------
</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, Except Share Data)
<TABLE>
<CAPTION>
Three Months Ended
----------------------
June June
1, 1997 2, 1996
--------- ---------
<S> <C> <C>
Cash flows from financing activities:
Sale of common shares in connection
with employee incentive stock
option plan 42 3
Repayment of long-term debt ( 4) ( 6)
Dividends paid on common stock ( 247) ( 244)
------ ------
Net cash used by financing
activities ( 209) ( 247)
------ ------
Increase (decrease) in cash and
cash equivalents ( 1,124) 240
Cash and cash equivalents, beginning
of period 1,852 1,335
------ ------
Cash and cash equivalents, end of
period $ 728 1,575
====== ======
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest $ 1 1
====== ======
Income taxes $ 261 95
====== ======
Supplemental disclosures of noncash
financing activities:
Issuance of 5,650 common shares in
exchange for 2,523 common shares
delivered to the Company by officers
in connection with the employee
incentive stock option plan $ 43 -
====== ======
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 1, 1997 and June 2, 1996
(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 decreased to $728,000 during the
first three months of fiscal 1998 from $1,852,000 at the end of fiscal 1997. The
decrease resulted from cash used by operating activities totaling $3,109,000,
repayments of long-term debt of $4,000, purchases of capital equipment of
$75,000, and the payment of $247,000 in cash dividends to shareholders.
Offsetting the decrease in cash and cash equivalents from these uses were net
sales of short-term investments of $2,269,000 and proceeds of $42,000 from the
sale of common stock in connection with the employee incentive stock option
plan. Funds used by operating activities during the first three months of fiscal
1997 were $1,042,000.
<PAGE>
- 8 -
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
- - ------- -------------------------------------------------
CONDITION AND RESULTS OF OPERATIONS
-----------------------------------
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 1998. 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. Currently, the committed revolving credit facility has an expiration
date of August 31, 1999. During the first three months of fiscal 1998, the
Company did not have any borrowings under the committed revolving credit
facility.
On March 4, 1996, SI/BAKER, INC. ("SI/BAKER") established a $2,500,000 Line
of Credit Facility (the "Facility") with its principal bank (the "Bank"). Under
terms of the Facility, SI/BAKER's parent companies, SI Handling Systems, Inc.
and Automated Prescription Systems, Inc., have each provided a limited guarantee
and surety in the amount not to exceed $1,000,000 for a combined guarantee of
$2,000,000 to the Bank for the payment and performance of the related note,
including any further renewals or modifications of the Facility. As of May 31,
1997, SI/BAKER's related debt outstanding under the Facility was $1,750,000.
SI/BAKER intends to satisfy the note and thereby release the parent companies'
guarantees during the second quarter of fiscal 1998. The Facility has an
expiration date of August 31, 1997.
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 1, 1997 versus Three Months Ended June 2,
- - -----------------------------------------------------------------
1996
- - ----
The Company's net earnings for the first three months of fiscal 1998 were
$556,000 compared to net earnings of $385,000 for the first three months of
fiscal 1997.
<PAGE>
- 9 -
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
- - ------- -------------------------------------------------
CONDITION AND RESULTS OF OPERATIONS
-----------------------------------
SI HANDLING SYSTEMS, INC.
Results Of Operations
- - ---------------------
Three Months Ended June 1, 1997 versus Three Months Ended June 2,
- - -----------------------------------------------------------------
1996 (Continued)
- - ----
Backlog at the end of the first quarter of fiscal 1998 was $32,593,000 with
the majority of the backlog pertaining to Switch-Cart and Dispen-SI-matic
contracts. During the first quarter of fiscal 1998, the Company was the
recipient of orders totalling $11,106,000 with the largest order taken by the
Company's Production & Assembly Systems Business Unit. The Defense Logistics
Agency of the United States government procured an addition of $6.7 million to
the prime mechanization contract it awarded the Company in September, 1996. The
contract options were exercised to expand the scope of a material handling and
storage system at the Distribution Operations Center of the Defense Distribution
Depot located in Red River, Texas. This contract, the largest in the Company's
history, totals approximately $23.4 million.
Net sales of $9,542,000 for the first three months of fiscal 1998 increased
69.5% compared to net sales of $5,631,000 for the first three months of fiscal
1997. The sales increase in the first three months of fiscal 1998 is attributed
primarily to a larger backlog of orders entering fiscal 1998 ($31,029,000 versus
a $10,488,000 backlog beginning fiscal 1997). The largest increases in sales
occurred in the Switch-Cart and Order Selection product lines. The increase in
the Switch-Cart product line was primarily attributable to progress made on the
contract with the Defense Logistics Agency of the United States government.
Also, the increase experienced in the Company's Order Selection product line
during the first three months of fiscal 1998 was primarily attributable to a
significant amount of progress relating to several large contracts received
prior to the start of fiscal 1998. During the first three months of fiscal 1997,
the Company's Order Selection product line accounted for a moderate amount of
sales revenues. Contributing to the lower backlog at the beginning of fiscal
1997, and hence sales in the first three months of fiscal 1997, were 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.
Gross profit as a percentage of sales was 23.3% for the first three months
of fiscal 1998 compared to 30.0% for the first three months of fiscal 1997. The
decrease in the gross profit percentage for the first three months of fiscal
1998 was primarily attributable to (i) a higher content in contracts currently
in progress of ancillary products wherein margins are lower than contracts
containing a high degree of proprietary products and (ii) a contract containing
new product requiring greater than expected complex systems integration
services. The attainment of the elevated gross profit percentage during the
first three months of fiscal 1997 was primarily attributable to the favorable
performance on several contracts initiated in prior fiscal years that
<PAGE>
- 10 -
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
- - ------- -------------------------------------------------
CONDITION AND RESULTS OF OPERATIONS
-----------------------------------
SI HANDLING SYSTEMS, INC.
Results Of Operations
- - ---------------------
Three Months Ended June 1, 1997 versus Three Months Ended June 2,
- - -----------------------------------------------------------------
1996 (Continued)
- - ----
were completed during the first three months of fiscal 1997 as well as to a
higher content in contracts then in progress of proprietary product wherein
margins are higher than contracts containing a high degree of ancillary
products.
Selling, general, and administrative expenses of $1,487,000 were higher by
$157,000 in the first three months of fiscal 1998 than in the comparable fiscal
1997 period. The increase in selling, general, and administrative expenses is
attributable to inflationary trends and to the Company's incentive-based
compensation plan which provides for gain sharing as a means of promoting
performance excellence.
Product development costs for the first three months of fiscal 1998 were
relatively the same as costs for the comparable fiscal 1997 period. Development
programs in the first three months of fiscal 1998 included efforts directed at
improvements across various product lines, and to efforts associated with the
introduction of the Henke light-duty overhead transportation product, for which
the Company is in the process of becoming an exclusive North American
distributor. Development programs in the first three months of fiscal 1997
included enhancements to the Company's product controls and features and
improvements to the Sortation and Order Selection product lines, with particular
emphasis aimed at Dispen-SI-matic and Pick-to-Light Systems.
Interest income of $67,000 was higher by $22,000 in the first three months
of fiscal 1998 than in the comparable fiscal 1997 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 1998.
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 1998
in the equity in income of joint venture was attributable to SI/BAKER's growth
in revenues, as compared to the comparable fiscal 1997 quarter, as well as to
reductions in product development costs and selling, general, and administrative
expenses. SI/BAKER's fiscal 1997 comparable period product development costs
were associated with the BK2000 automated pharmacy system product line, while
selling, general, and administrative expenses were impacted unfavorably by legal
costs associated with the since settled patent infringement litigation.
Partially offsetting the favorable variance was increased revenue based royalty
costs due to the parent companies.
The favorable variance in other income, net, is primarily attributable to
an increase in royalty income related to the SI/BAKER, INC. joint venture and
<PAGE>
- 11 -
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
- - ------- -------------------------------------------------
CONDITION AND RESULTS OF OPERATIONS
-----------------------------------
SI HANDLING SYSTEMS, INC.
Results Of Operations
- - ---------------------
Three Months Ended June 1, 1997 versus Three Months Ended June 2,
- - ------------------------------------------------------------------------
1996 (Continued)
- - ----
an increase in purchase discounts earned by the Company due to increased
purchasing requirements.
The Company incurred income tax expense of $357,000 during the first three
months of fiscal 1998 compared to income tax expense of $31,000 in the
comparable fiscal 1997 period. Income tax expense for the first three months of
fiscal 1998 was recorded at the statutory federal and state tax rates expected
to apply for the current fiscal year. Income tax expense for the first three
months of fiscal 1997 was 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.
PART II - OTHER INFORMATION
---------------------------
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
- - ------- --------------------------------
(a) Exhibit 27 - Financial Data Schedule
(b) During the quarter ended June 1, 1997, no report on Form 8-K was filed.
<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.
/s/ Barry V. Mack
Barry V. Mack
Vice President - Finance
Dated: July 15, 1997
---------------------------
<PAGE>
- 13 -
SCHEDULE A
SI/BAKER, INC.
FINANCIAL STATEMENTS
MAY 31, 1997
<PAGE>
- 14 -
SI/BAKER, INC.
Balance Sheets
May 31, 1997 and February 28, 1997
(In Thousands, Except Share Data)
<TABLE>
<CAPTION>
May February
31, 1997 28, 1997
--------- --------
<S> <C> <C>
Assets
- - ------
Current assets:
Cash and cash equivalents, principally
time deposits $ 418 484
Receivables:
Trade 3,489 1,618
Other receivables -- 122
------ ------
Total receivables 3,489 1,740
------ ------
Costs and estimated earnings in
excess of billings 5,751 4,111
Inventories 44 36
Deferred income tax benefits 367 367
Prepaid expenses and other current
assets 90 87
------ ------
Total current assets 10,159 6,825
------ ------
Machinery and equipment, at cost 114 106
Less: accumulated depreciation 46 41
------ ------
Net machinery and equipment 68 65
------ ------
Equipment leased to customer 487 487
Less: accumulated depreciation 157 127
------ ------
Net equipment leased to customer 330 360
------ ------
Deferred income tax benefits 6 6
------ ------
Total assets $ 10,563 7,256
======= ======
</TABLE>
<PAGE>
- 15 -
SI/BAKER, INC.
Balance Sheets
May 31, 1997 and February 28, 1997
(In Thousands, Except Share Data)
<TABLE>
<CAPTION>
May February
31, 1997 28, 1997
--------- --------
<S> <C> <C>
Liabilities and Stockholders' Equity
- - ------------------------------------
Current liabilities:
Note payable to bank $ 1,750 1,750
Accounts payable:
Trade 2,647 1,920
Affiliated companies 2 356
------ ------
Total accounts payable 2,649 2,276
------ ------
Customers' deposits and billings in
excess of costs and estimated
earnings 3,159 779
Accrued salaries, wages, and
commissions 253 307
Income taxes payable 107 -
Accrued royalties payable 336 319
Accrued product warranties 553 463
Accrued other liabilities 337 151
------ ------
Total current liabilities 9,144 6,045
------ ------
Stockholders' equity:
Common stock, $1 par value; authorized
1,000 shares; issued 200 shares - -
Additional paid-in capital 200 200
Retained earnings 1,219 1,011
------ ------
Total stockholders' equity 1,419 1,211
------ ------
Total liabilities and stockholders'
equity $ 10,563 7,256
====== ======
</TABLE>
<PAGE>
- 16 -
SI/BAKER, INC.
Statements of Operations
Three Months Ended May 31, 1997 and 1996
(In Thousands)
<TABLE>
<CAPTION>
Three Months Ended
-------------------------
May May
31, 1997 31, 1996
--------- ---------
<S> <C> <C>
Net sales $ 4,704 3,670
Cost of sales 3,896 2,969
------ ------
Gross profit on sales 808 701
------ ------
Selling, general and
administrative
expenses 261 314
Product development
costs 3 136
Royalty expense to
parent companies 188 147
Interest income ( 7) ( 6)
Interest expense 33 7
Other expense
(income), net ( 20) 3
------ ------
458 601
------ ------
Earnings before
income taxes 350 100
Income tax expense 142 40
------ ------
Net earnings $ 208 60
====== ======
</TABLE>
<PAGE>
- 17 -
SI/BAKER, INC.
Statements of Cash Flows
Three Months Ended May 31, 1997 and 1996
(In Thousands)
<TABLE>
<CAPTION>
Three Months Ended
-------------------------
May May
31, 1997 31, 1996
--------- ---------
<S> <C> <C>
Cash flow from operating activities:
Net earnings $ 208 60
Adjustments to reconcile net earnings
to net cash provided (used) by
operating activities:
Depreciation of machinery and
equipment and leased equipment 35 4
Changes in operating assets and
liabilities:
Receivables ( 1,749) ( 2,910)
Costs and estimated earnings
in excess of billings ( 1,640) 1,060
Inventories ( 8) ( 31)
Prepaid expenses and other
current assets ( 3) ( 29)
Accounts payable 373 ( 352)
Customers' deposits and
billings in excess of costs
and estimated earnings 2,380 222
Accrued salaries, wages, and
commissions ( 54) ( 135)
Income taxes payable 107 ( 142)
Accrued royalties payable 17 13
Accrued product warranties 90 -
Accrued other liabilities 186 167
------ ------
Net cash used by operating
activities ( 58) ( 2,073)
------ ------
Cash flows used in investing activities:
Additions to machinery and equipment ( 8) ( 9)
Equipment leased to customer - ( 9)
------ ------
Net cash used by investing activities ( 8) ( 18)
------ ------
Cash flows provided by financing activities:
Increase in note payable to bank - 2,000
------ ------
Decrease in cash and cash equivalents ( 66) ( 91)
Cash and cash equivalents,
beginning of period 484 327
------ ------
Cash and cash equivalents, end of period $ 418 236
====== ======
</TABLE>
<PAGE>
- 18 -
SI/BAKER, INC.
Statements of Cash Flows (Continued)
Three Months Ended May 31, 1997 and 1996
(In Thousands)
<TABLE>
<CAPTION>
Three Months Ended
-------------------------
May May
31, 1997 31, 1996
--------- ---------
<S> <C> <C>
Supplemental disclosure of cash flow
information:
Cash paid during the period for:
Income taxes $ 37 182
====== ======
Interest $ 30 -
====== ======
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> THIS SCHEDULE CONTAINS
SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM FORM 10-Q FOR
THE QUARTER ENDED JUNE 1, 1997
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-01-1998
<PERIOD-END> JUN-01-1997
<CASH> 728
<SECURITIES> 1,472
<RECEIVABLES> 3,786
<ALLOWANCES> 0
<INVENTORY> 2,076
<CURRENT-ASSETS> 14,131
<PP&E> 7,177
<DEPRECIATION> 5,888
<TOTAL-ASSETS> 16,409
<CURRENT-LIABILITIES> 6,844
<BONDS> 31
0
0
<COMMON> 2,469
<OTHER-SE> 6,925
<TOTAL-LIABILITY-AND-EQUITY> 16,409
<SALES> 9,542
<TOTAL-REVENUES> 9,542
<CGS> 7,322
<TOTAL-COSTS> 7,322
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2
<INCOME-PRETAX> 913
<INCOME-TAX> 357
<INCOME-CONTINUING> 556
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 556
<EPS-PRIMARY> .22
<EPS-DILUTED> .22
</TABLE>
