SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended Commission File No.
December 31, 1997 33-67422
SABRELINER CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 43-1289921
(State of Incorporation) (I.R.S. Employer
Identification No.)
Pierre Laclede Center
Suite 1500
7733 Forsyth Blvd.
St. Louis Missouri 63105-1821
(314) 863-6880
(Name, address, including ZIP Code, and telephone number,
including area code, of registrant's principal executive offices)
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 report(s), and (2) has been subject to such filing
requirements for the past 90 days. YES [ X ] NO [ ]
The number of shares of the Company's common stock outstanding on
January 31, 1998 was 869,934.
PART I - FINANCIAL INFORMATION
Condensed Financial Statements
Sabreliner Corporation
Consolidated Balance Sheets
(Dollars in Thousands)
Unaudited Audited
December 31, June 30, 1997
1997
Assets
Current assets:
Cash $ 2,169 $ 22,994
Accounts receivable (net of
allowances of $548
and $550, respectively) 26,881 29,952
Inventories 40,753 31,542
Contracts in process (net of
customer advances and
progress payments of $20,361 43,971 20,192
and $15,143, respectively)
Prepaid and other current 6,778 4,697
assets
Total current assets 120,552 109,377
Property and equipment, (net of
depreciation of $23,055
and $21,286, respectively) 44,983 37,882
Deferred financing costs
and other assets 8,587 9,641
Total assets $174,122 $156,900
Liabilities and stockholders'
equity
Current liabilities:
Accounts payable $ 31,382 $ 24,997
Current portion of long-term
debt and capital leases 711 750
Customer advances 3,111 5,588
Accrued compensation 5,683 7,068
Accrued interest expense 2,034 1,946
Other accrued liabilities 5,915 8,994
Total current liabilities 48,836 49,343
Long-term debt and capital 93,971 94,863
leases
Revolving credit facility 15,144 -
Other long-term liabilities 2,201 2,202
Stockholders' equity 13,970 10,492
Total liabilities and $174,122 $156,900
stockholders' equity
Sabreliner Corporation
Consolidated Statements of Operations
(Unaudited)
(Dollars in Thousands, Share and per Share Data as Stated)
Three Months Ended Six Months Ended
December December December December
31, 1997 31, 1996 31, 1997 31, 1996
Net revenue $69,159 $51,729 $132,312 $102,698
Cost of revenue 55,214 45,557 104,737 87,404
Gross margin 13,945 6,172 27,575 15,294
Selling, general
and administrative 8,025 9,360 15,574 16,106
expense
Operating income 5,920 (3,188) 12,001 (812)
(loss)
Interest expense, (3,320) (3,280) (6,312) (6,284)
net
Other income 10 (6) (57) (3)
(expense)
Earnings (loss)
before income 2,610 (6,474) 5,632 (7,099)
taxes
Income tax (990) 2,754 (2,139) 2,964
(expense) benefit
Net income (loss) $1,620 $(3,720) $3,493 $(4,135)
Earnings per share
data
Basic earnings
(loss) $ 1.86 $(4.27) $4.01 $(4.75)
per share
Diluted earnings
(loss) $ 1.85 $(4.25) $3.99 $(4.73)
per share
Dividends paid per
common share $ 0.00 $ 0.00 $0.00 $0.00
Sabreliner Corporation
Consolidated Statements of Cash Flows
(Unaudited)
(Dollars in Thousands)
Six Months Ended
December December
31, 1997 31, 1996
Cash flows from operating activities:
Net income (loss) $ 3,493 $ (4,135)
Adjustments to reconcile net
earnings to net cash provided
by operating activities:
Depreciation 3,016 3,006
Amortization 646 601
Changes in assets and (34,857) (15,746)
liabilities
Net cash used by operating activities (27,702) (16,274)
Cash flows used in investing
activities:
Capitalized expenditures (10,121) (3,802)
Cash flows from financing activities:
Principal payments on long-term debt
and capital leases (381) (577)
Proceeds from revolving credit
facility and other short-term
borrowings 17,394 9,550
Purchase of treasury stock (15) -
Net cash provided by
financing activities 16,998 8,973
Net decrease in cash and
cash equivalents (20,825) (11,103)
Cash and cash equivalents,
beginning of period 22,994 12,254
Cash and cash equivalents,
end of period $ 2,169 $ 1,151
Notes to Unaudited Condensed Financial Statements
Basis of Presentation
The information set forth in these interim financial
statements as of and for the three and six months ended
December 31, 1997 and December 31, 1996 is unaudited. In
the opinion of management, the unaudited financial
statements reflect all adjustments necessary to present
fairly the financial results of Sabreliner Corporation and
its subsidiaries Midcoast Aviation, Inc., SabreTech, Inc.,
Dimension Aviation, Inc. and Turbotech Repairs, Inc.
(operating as part of Premier Turbines) for the periods
indicated. Results of operations for the interim period
ended December 31, 1997 are not necessarily indicative of
the results of operations for the full fiscal year.
Inventories
Components of inventories as of December 31, 1997 and June
30, 1997 were:
December June
Aircraft parts $36,766 $28,839
Raw materials 1,637 1,403
Pre-owned aircraft 2,350 1,300
Total $40,753 $31,542
Contracts in Process
Contracts in process represent accumulated contract cost and
estimated earnings thereon based upon the percentage of
completion of unbilled customer orders, net of applicable
customer advance or progress payments. In determining
balances of contracts in process, the Company follows all
the requirements of SOP81-1. Title to or a security
interest in certain items included in contracts in process
can be vested in the U.S. government and other customers by
reasons of progress payment provisions of related contracts.
Included in the contracts in process as of December 31, 1997
are the proportionate revenues earned on amounts subject to
claim settlement, representing less than $1.0 million. In
accordance with industry standards, contracts in process
relating to long-term contracts are classified as current
assets even though a portion may not be realized within one
year.
Earnings Per Share
In 1997, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 128,
Earnings per Share. Adoption of Statement 128 requires the
replacement of the previously-reported primary earnings per
share with a dual presentation of basic and diluted earnings
per share. Basic earnings per share is computed using
outstanding common stock only. Diluted earnings per share
includes the dilutive effects of options, warrants and
convertible securities. All earnings per share amounts for
all periods have been presented, and where necessary,
restated to conform to the Statement 128 requirements. The
following table sets forth the computation of basic and
diluted earnings per share:
Three Months Ended Six Months Ended
December December December December
31, 1997 31, 1996 31, 1997 31, 1996
Numerator:
Numerator for basic
EPS - Net Income $1,620 $(3,720) $3,493 $(4,135)
Effect of dilutive - - - -
securities
Numerator for
fully $1,620 $(3,720) $3,493 $(4,135)
diluted EPS
Denominator:
Denominator for
basic EPS - 869,934 870,934 870,434 870,884
weighted-average
shares
Employee stock 4,937 4,106 4,937 4,118
options
Denominator
diluted EPS -
weighted-average
shares and 874,871 875,040 875,371 875,002
assumed conversions
EPS:
Basic earnings per $ 1.86 $(4.27) $4.01 $(4.75)
share
Diluted earnings per $ 1.85 $(4.25) $3.99 $(4.73)
share
Options to purchase 1,400 shares of common stock at $17.22
per share which were outstanding through August 19, 1996 and
4,000 shares of common stock at $15.00 per share which are
currently outstanding were not included in the computation
of diluted earnings per share because the options' exercise
price was greater than or equal to the average market price
of the common shares, and, therefore, the effect would be
antidilutive.
SIGNATURES
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.
SABRELINER CORPORATION
Date: March 5, 1998 /s/ F. Holmes Lamoreux
F. Holmes Lamoreux
Chairman of the Board and
Chief Executive Officer
Date: March 5, 1998 /s/ Rodney E. Olson
Rodney E. Olson
Senior Vice President, Finance and
Corporate Development and Chief
Financial Officer
