UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 10-Q
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2000
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
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Commission File Number 0 - 23426
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REPTRON ELECTRONICS, INC.
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(Exact name of registrant as specified in its charter)
Florida 38-2081116
-------------------------------- ------------------------------------
State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or organization
14401 McCormick Drive
Tampa, Florida 33626
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (813)854-2351
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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.
Yes X No
------- -------
6,304,005 shares of common stock issued and outstanding as of
November 1, 2000.
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<PAGE>
REPTRON ELECTRONICS, INC.
INDEX
Page
PART I. FINANCIAL INFORMATION Number
------
Item 1. Financial Statements
Consolidated Statements of Operations --
Three months ended September 30, 2000 and
September 30, 1999 and nine months ended
September 30, 2000 and September 30, 1999 3
Consolidated Balance Sheets --
September 30, 2000 and December 31, 1999 4
Consolidated Statement of
Shareholders' Equity -- Nine months ended
September 30, 2000 and year ended December 31, 1999 5
Consolidated Statements of Cash Flows --
Nine months ended September 30, 2000 and September
30, 1999 6
Notes to Consolidated Financial
Statements -- September 30, 2000 8
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 10
PART II. OTHER INFORMATION
Item 3. Quantitative and Qualitative Disclosures about
Market Risk 12
Item 6. Exhibits and Reports on Form 8-K 13
SIGNATURES 14
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
<CAPTION>
REPTRON ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
Three months ended Nine months ended
September 30, September 30,
(Unaudited) (Unaudited)
--------------------- ----------------------
2000 1999 2000 1999
------- ------- -------- ---------
<S> <C> <C> <C> <C>
Net sales $152,653 $ 93,559 $416,526 $251,970
Cost of goods sold 127,613 80,119 348,104 217,525
------- ------- ------- -------
Gross profit 25,040 13,440 68,422 34,445
Selling, general and administrative expenses 18,449 14,130 53,390 40,353
------- ------- ------- -------
Operating earnings (loss) 6,591 (690) 15,032 (5,908)
Interest expense, net 3,066 1,964 8,117 6,131
------- ------- ------- -------
Earnings (loss) before income taxes 3,525 (2,654) 6,915 (12,039)
Income tax provision (benefit) 1,632 (990) 3,252 (4,595)
------- ------- ------- -------
Earnings (loss) before extraordinary item 1,893 (1,664) 3,663 (7,444)
Extraordinary gain on extinguishment of debt,
Net of tax - 4,527 - 12,776
------- ------- ------- -------
Net earnings $ 1,893 $ 2,863 $ 3,663 $ 5,332
======= ======= ======= =======
Net earnings per common share - basic:
Earnings (loss) before extraordinary item $ 0.30 $ (0.27) $ 0.59 $ (1.21)
Extraordinary gain 0.00 0.74 0.00 2.08
------- ------- ------- ------
Net earnings per common share - basic $ 0.30 $ 0.47 $ 0.59 $ 0.87
======= ======= ======= ======
Weighted average common shares outstanding -
basic 6,282,405 6,147,119 6,229,121 6,147,119
========= ========= ========= =========
Net earnings per common share - diluted:
Earnings (loss) before extraordinary item $ 0.27 $ (0.27) $ 0.54 $ (1.21)
Extraordinary gain 0.00 0.74 0.00 2.08
------- ------- ------- ------
Net earnings per common share - diluted $ 0.27 $ 0.47 $ 0.54 $ 0.87
======= ======= ======= ======
Weighted average common shares outstanding -
diluted 6,973,455 6,147,119 6,837,620 6,147,119
========= ========= ========= =========
</TABLE>
The accompanying notes are an integral part of these financial statements
3
<PAGE>
<TABLE>
<CAPTION>
REPTRON ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
ASSETS
(Unaudited)
September 30, December 31,
2000 1999
------------- ------------
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $ 1,786 $ 108
Accounts receivable - trade, less allowances
for doubtful accounts of $1,214 and $609,
respectively 86,055 62,754
Inventories, net 117,167 82,553
Prepaid expenses and other assets 2,738 2,118
------- -------
Total current assets 207,746 147,533
PROPERTY, PLANT & EQUIPMENT - AT COST, NET 35,511 34,997
EXCESS OF COST OVER NET ASSETS ACQUIRED, NET 29,546 30,507
OTHER ASSETS 2,738 2,816
------- -------
$275,541 $215,853
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable - trade $ 55,779 42,062
Current portion of long-term obligations 2,589 3,280
Accrued expenses 7,106 6,068
Income taxes payable 1,126 446
------- -------
Total current liabilities 66,600 51,856
NOTE PAYABLE TO BANK 75,488 37,413
LONG-TERM OBLIGATIONS, less current portion 81,270 79,104
DEFERRED TAX LIABILITY 750 520
SHAREHOLDERS' EQUITY
Preferred Stock - authorized 15,000,000 shares
of $.10 par value; no shares issued - -
Common Stock - authorized 50,000,000 shares
of $.01 par value; issued and outstanding,
6,298,379 and 6,167,119 shares, respectively 63 62
Additional paid-in capital 22,549 21,740
Retained earnings 28,821 25,158
------- -------
51,433 46,960
------- -------
$275,541 $215,853
======= =======
</TABLE>
The accompanying notes are an integral part of these financial statements
4
<PAGE>
<TABLE>
<CAPTION>
REPTRON ELECTRONICS, INC.
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
(In thousands, except share data)
Common Stock
------------------ Additional Total
Shares Par Paid-In Retained Shareholders'
Outstanding Value Capital Earnings Equity
----------- ----- ---------- -------- -------------
<S> <C> <C> <C> <C> <C>
Balance at December 31, 1998 6,147,119 $61 $21,676 $20,389 $42,126
Exercise of stock options 20,000 1 64 - 65
Net earnings - - - 4,769 4,769
--------- -- ------ ------ ------
Balance at December 31, 1999 6,167,119 62 21,740 25,158 46,960
Exercise of stock
options (Unaudited) 131,260 1 809 - 810
Net Earnings (Unaudited) - - - 3,663 3,663
--------- -- ------ ------ ------
Balance at September 30, 2000
(Unaudited) 6,298,379 $63 $22,549 $28,821 $51,433
========= == ====== ====== ======
</TABLE>
The accompanying notes are an integral part of this financial statement
5
<PAGE>
<TABLE>
<CAPTION>
REPTRON ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Nine months ended
September 30,
(Unaudited)
------------------
2000 1999
------- -------
Increase (decrease) in cash and cash equivalents:
<S> <C> <C>
Cash flows from operating activities:
Net earnings $ 3,663 $ 5,332
Adjustments to reconcile net earnings to net cash
used in operating activities:
Depreciation and amortization 7,873 8,198
Extraordinary gain - (12,776)
Deferred income taxes 230 (4,595)
Loss on disposal of assets 25 -
Change in assets and liabilities:
Accounts receivable - trade (23,301) (9,502)
Inventories (34,614) (7,469)
Prepaid expenses and other current assets (620) 8,424
Other assets (449) (228)
Accounts payable - trade 13,717 10,421
Accrued expenses 1,038 (3,455)
Deferred revenue - (70)
Income taxes payable 680 (715)
------ -------
Net cash used in operating activities (31,758) (6,435)
------ -------
Cash flows from investing activities:
Purchases of property, plant and equipment (6,924) (2,541)
Proceeds from the sale of property - 99
------ -------
Net cash used in investing activities (6,924) (2,442)
------ -------
Cash flows from financing activities:
Proceeds from exercise of stock options 810 -
Net proceeds from note payable to bank 38,075 -
Proceeds from long-term obligations 4,000 29,302
Payments on long-term obligations (2,525) (27,642)
------ -------
Net cash provided by financing activities 40,360 1,660
------ -------
Net increase (decrease) in cash and cash
equivalents 1,678 (7,217)
Cash and cash equivalents at beginning of period 108 10,065
------ -------
Cash and cash equivalents at end of period $ 1,786 $ 2,848
====== ======
</TABLE>
The accompanying notes are an integral part of these financial statements
6
<PAGE>
REPTRON ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(In thousands)
Nine months ended
September 30,
(Unaudited)
------------------
2000 1999
-------- --------
Supplemental cash flow information:
Interest paid $ 8,670 $ 7,561
====== ======
Income taxes paid $ 2,469 $ 690
====== ======
Non-cash investing and financing activities:
During the nine month period ended September 30, 1999, we incurred
approximately $372,000 of obligations under capital leases for the acquisition
of equipment.
Goodwill, related to the 1998 Hibbing acquisition, was reduced approximately
$767,000 during the period ended September 30, 1999.
Net capitalized financing costs of approximately $1.2 million, related to
the year to date repurchase of convertible subordinated bonds, was written off
during the period ended September 30, 1999, and was included in the
calculation of the extraordinary item.
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
REPTRON ELECTRONICS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
NOTE A -- BASIS OF PRESENTATION
The accompanying consolidated financial statements have been prepared in
accordance with the instructions to Form 10-Q and do not include all the
information and footnote disclosure required by generally accepted
accounting principles for complete financial statements. The consolidated
financial statements as of September 30, 2000 and for the three and nine
months ended September 30, 2000 and September 30, 1999 are unaudited and
reflect all adjustments (consisting only of normal recurring adjustments)
which are, in the opinion of management, necessary for a fair presentation
of the financial position and operating results for the interim periods.
The results of operations for the three and nine months ended September 30,
2000 are not necessarily indicative of results that may be expected for the
year ending December 31, 2000. The consolidated financial statements
should be read in conjunction with the financial statements and notes
thereto, together with management's discussion and analysis of financial
condition and results of operations, included in the 1999 Form 10-K.
<TABLE>
<CAPTION>
NOTE B -- INVENTORIES
Inventories consist of the following (in thousands):
September 30, December 31,
2000 1999
------------- -------------
<S> <C> <C>
Electronic Component Distribution:
Inventories $ 76,355 $45,503
Electronic Manufacturing Services:
Work in process 12,954 12,270
Raw materials 27,858 24,780
------- ------
$117,167 $82,553
======= ======
</TABLE>
8
<PAGE>
REPTRON ELECTRONICS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
SEPTEMBER 30, 2000
NOTE C -- FINANCIAL INFORMATION ABOUT INDUSTRY SEGMENTS
Reptron Electronics, Inc. is a leading electronics manufacturing supply
chain services company operating as a national distributor of electronic
components, a contract manufacturer of electronic products and display
solution provider. Our Electronic Component Distribution customers are in
diverse industries including robotics, telecommunications, computers and
computer peripherals, consumer electronics, healthcare, industrial controls
and contract manufacturing. Our Electronic Manufacturing Services segment
manufactures electronic products according to customer design, primarily for
customers in the telecommunications, healthcare, industrial/instrumentation,
banking and office products industries. As a display solution provider, we
provide display design engineering, systems integration and turnkey
manufacturing services.
The following table shows net sales and gross profit by industry segments:
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
(in thousands) (in thousands)
------------------ -----------------
2000 1999 2000 1999
------ ------ ------ ------
<S> <C> <C> <C> <C>
Net Sales
Electronic Component Distribution $ 93,071 $52,858 $248,966 $136,552
Electronic Manufacturing Services 59,582 40,701 167,560 115,418
------- ------ ------- -------
$152,653 $93,559 $416,526 $251,970
======= ====== ======= =======
Gross Profit
Electronic Component Distribution $ 16,737 $ 8,659 $ 46,387 $ 22,689
Electronic Manufacturing Services 8,303 4,781 22,035 11,756
------- ------ ------- -------
$ 25,040 $13,440 $ 68,422 $ 34,445
======= ====== ======= =======
</TABLE>
NOTE D -- EARNINGS PER SHARE
<TABLE>
<CAPTION>
The following table sets forth the computation of basic and diluted net earnings per common share:
Three months ended Nine months ended
September 30, September 30,
------------------ -------------------
2000 1999 2000 1999
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Numerator:
Net earnings (in thousands) $ 1,893 $ 2,863 $ 3,663 $ 5,332
========= ========= ========= =========
Denominator:
For basic earnings per share -
Weighted average shares 6,282,405 6,147,119 6,229,121 6,147,119
Effect of dilutive securities:
Employee stock options 691,050 - 608,499 -
--------- --------- --------- ---------
For diluted earnings per share 6,973,455 6,147,119 6,837,620 6,147,119
========= ========= ========= =========
Net earnings per common share - basic $ 0.30 $ 0.47 $ 0.59 $ 0.87
========= ========= ========= =========
Net earnings per common share - diluted $ 0.27 $ 0.47 $ 0.54 $ 0.87
========= ========= ========= =========
</TABLE>
9
<PAGE>
Item 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
This document contains certain forward-looking statements that involve a
number of risks and uncertainties. Such forward-looking statements are within
the meaning of that term in Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities Act of 1934, as amended. Factors
that could cause actual results to differ materially include the following:
business conditions and growth in our industry and in the general economy;
competitive factors; risks due to shifts in market demand; the ability of
Reptron to complete and integrate acquisitions; and the risk factors listed
from time to time in our reports filed with the Securities and Exchange
Commission as well as assumptions regarding the foregoing. The words
"believe", "estimate", "expect", "intend", "anticipate", "plan" and similar
expressions and variations thereof identify certain of such forward-looking
statements, which speak only as of the dates on which they were made. Reptron
undertakes no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events, or
otherwise. Readers are cautioned that any such forward-looking statements are
not guarantees of future performance and involve risks and uncertainties, and
that actual results may differ materially from those indicated in the forward-
looking statements as a result of various factors. Readers are cautioned not
to place undue reliance on these forward-looking statements.
RESULTS OF OPERATIONS
Net Sales. Third quarter net sales increased $59.1 million, or 63.2%,
from $93.6 million in the third quarter of 1999 to $152.7 million in the third
quarter of 2000. Total net sales for the first three quarters of 2000
increased $164.5 million, or 65.3% from $252.0 million in the first three
quarters of 1999 to $416.5 million in the first three quarters of 1999.
Electronic Component Distribution ("ECD") third quarter net sales
increased $40.2 million, or 76.1%, from $52.9 million in the third quarter of
1999 to $93.1 million in the third quarter of 2000. This increase resulted
primarily from improved market conditions for the sale of electronic
components in the United States. Additionally, we have made significant
investments in personnel and other infrastructure, which has aided in sales
volume growth. Sales of semiconductors, passive components and
electromechanical components accounted for 67.0%, 24.3% and 8.7%,
respectively, of third quarter 2000 ECD net sales compared to 72.0%, 19.2% and
8.8%, respectively, of third quarter 1999 ECD net sales. Sales generated from
the top four ECD vendors accounted for approximately $40.0 million, or 43.0%
of third quarter 2000 ECD net sales, as compared with approximately $18.4
million or 34.8% of third quarter 1999 ECD net sales.
ECD net sales increased $112.4 million, or 82.3%, from $136.6 million in
the first three quarters of 1999 to $249.0 million in the first three quarters
of 2000. This increase was primarily the result of the factors stated above.
Sales of semiconductors, passive components and electromechanical components
accounted for 65.9%, 25.8% and 8.3%, respectively, of first three quarters
2000 ECD net sales, compared to 72.3%, 19.8% and 7.9%, respectively, of first
three quarters 1999 ECD net sales. Sales generated from the top four ECD
vendors accounted for approximately $103.0 million, or 41.4% of first three
quarters 2000 ECD net sales, as compared with approximately $45.6 million or
33.4% of first three quarters 1999 ECD net sales
Electronic Manufacturing Services ("EMS") net sales increased $18.9
million, or 46.4%, from $40.7 million in the third quarter of 1999 to $59.6
million in the third quarter of 2000. After adjusting for net sales of
Applied Instruments, Inc. ("Applied"), acquired in October, 1999, third
quarter 2000 net sales increased $14.9 million or 36.5% as compared with third
quarter 1999 net sales. This increase is primarily attributable to increased
demands from within the existing customer base of EMS. EMS transacted
business with 87 customers in the third quarter of 2000. The three largest
EMS customers accounted for approximately 16.5%, 10.5% and 9.7%, respectively,
of third quarter 2000 EMS net sales (6.4%, 4.1% and 3.8%, respectively, of
total Company third quarter 2000 net sales) as compared to 12.9%, 8.4% and
6.8%, respectively, of third quarter 1999 EMS net sales (5.6%, 3.6% and 2.9%,
respectively, of total Company third quarter 1999 net sales). Sales from the
Hibbing, Minnesota; Tampa, Florida; Gaylord, Michigan and Fremont, California
manufacturing facilities accounted for approximately 36%, 33%, 24% and 7%
respectively, of EMS third quarter 2000 net sales as compared with 49%, 27%,
24% and 0%, respectively, of EMS third quarter 1999 net sales.
10
<PAGE>
EMS net sales increased $52.2 million, or 45.2%, from $115.4 million in
the first three quarters of 1999 to $167.6 million in the first three quarters
of 2000. After adjusting for net sales of Applied, net sales for the first
three quarters of 2000 increased $39.7 million, or 34.4% as compared with net
sales from the first three quarters of 1999. This increase is primarily
attributable to increased demand from within the existing EMS customer base.
EMS transacted business with 105 customers during the first three quarters of
2000. The three largest EMS customers accounted for approximately 14.7%,
9.3%, and 9.1%, respectively, of first three quarters 2000 EMS net sales
(5.9%, 3.7% and 3.7%, respectively, of total Company first three quarters 2000
net sales) as compared to 7.6%, 7.2% and 6.0%, respectively, of first three
quarters 1999 EMS net sales (3.6%, 3.4% and 2.8%, respectively, of total
Company first three quarters 1999 net sales). Sales from the Hibbing,
Minnesota; Tampa, Florida; Gaylord, Michigan and Fremont, California
manufacturing facilities accounted for approximately 37%, 32%, 23% and 8%
respectively, of total EMS sales in the first three quarters of 2000 as
compared with 40%, 30%, 30% and 0%, respectively, of total EMS sales in the
first three quarters of 1999.
Gross Profit. Total third quarter gross profit increased $11.6 million or
86.3%, from $13.4 million in the third quarter of 1999 to $25.0 million in the
third quarter of 2000. The gross margin increased from 14.3% in the third
quarter of 1999 to 16.4% in the third quarter of 2000. Total gross profit
increased $34.0 million, or 98.6%, from $34.4 million in the first three
quarters of 1999 to $68.4 million in the first three quarters of 2000. The
gross margin increased from 13.6% in the first three quarters of 1999 to 16.4%
in the first three quarters of 2000.
ECD third quarter gross profit increased $8.0 million, or 93.3%, from $8.7
million in the third quarter of 1999 to $16.7 million in the third quarter of
2000. ECD gross margin increased from 16.3% in the third quarter of 1999 to
18.0% in the third quarter of 2000. This increase in gross margin is due
primarily to improved selling and pricing practices and stronger electronic
component market conditions experienced in the third quarter of 2000 as
compared with market conditions in the third quarter of 1999. ECD first three
quarters gross margin increased from 16.6% in the first three quarters of 1999
to 18.6% in the first three quarters of 2000, for similar reasons.
EMS gross profit increased $3.5 million, or 73.7%, from $4.8 million in
the third quarter of 1999 to $8.3 million in the third quarter of 2000 and its
gross margin increased from 11.7% in the third quarter of 1999 to 13.9% in the
third quarter of 2000. EMS first three quarters gross profit increased $10.2
million, or 87.4% from $11.8 million in 1999 to $22.0 million in 2000 and its
gross margin increased from 10.2% in the first three quarters of 1999 to 13.2%
in the first three quarters of 2000. This increase in gross margin is
primarily attributable to the improvements in asset utilization and
manufacturing processes. Additionally, Applied generated higher gross margins
than the other EMS facilities.
Selling, General, and Administrative Expenses. Selling, general, and
administrative expenses increased $4.3 million, or 30.6%, from $14.1 million
in the third quarter of 1999 to $18.4 million in the third quarter of 2000.
Third quarter selling, general and administrative expenses of Applied were
approximately $915,000. After adjusting for the affects of Applied, the $3.4
million increase in selling, general and administrative expenses is primarily
attributable to increased variable expenses associated with increased sales
volumes. These expenses, as a percentage of net sales, decreased from 15.1%
in the third quarter of 1999 to 12.1% in the third quarter of 2000. First
three quarters selling, general and administrative expenses increased $13.0
million or 32.3% from $40.4 million in the first three quarters of 1999 to
$53.4 million in the first three quarters of 2000. First three quarters 2000
selling, general and administrative expenses of Applied were approximately
$2.7 million. After adjusting for the affects of Applied, selling, general
and administrative expenses increased $10.3 million or 25.5%. This increase
is primarily attributable to increased investment in our ECD sales channel
and variable expenses associated with increased sales volumes. First three
quarters selling, general and administrative expenses as a percentage of net
sales decreased from 16.0% in the first three quarters of 1999 to 12.8% in
the first three quarters of 2000.
Interest Expense. Net interest expense increased $1.1 million, or 56.1%,
from $2.0 million in the third quarter of 1999 to $3.1 million in the third
quarter of 2000. First three quarters net interest expense increased $2.0
million, or 32.4%, from $6.1 million in the first three quarters of 1999 to
$8.1 million in the first three quarters of 2000. These increases in net
interest expense resulted primarily from an increase in average outstanding
debt of $16.7 million from $122.9 million during the first three quarters of
1999 to $139.6 million during the first three quarters of 2000. In
addition, our overall average interest rate increased from 6.7% during the
first three quarters of 1999 to 7.8% during the first three quarters of 2000.
11
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
We primarily finance our operations through subordinated notes, bank
credit lines, capital equipment leases, and short-term financing through
supplier credit lines.
Net cash provided by or used in operating activities has historically been
driven by net income (loss) levels combined with fluctuations in inventory,
accounts receivable and accounts payable. Operating activities for the first
three quarters of 2000 used cash of approximately $31.8 million. This
decrease in liquidity resulted primarily from an increase in inventories of
$34.6 million and an increase in accounts receivable of $23.3 million. These
items were offset by an increase in accounts payable of $13.7 million and an
increase in accrued expenses of $1.0 million. Days sales in accounts
receivable as of September 30, 2000 were approximately 51 days. Annualized
inventory turns for the first three quarters of 2000 were 3.9 times.
Capital expenditures totaled approximately $6.9 million in the first three
quarters of 2000. These capital expenditures were primarily for the
acquisition of manufacturing equipment and building improvements. These
purchases were funded by our working capital credit facility.
We believe that available credit facilities will be sufficient for us to
meet our capital expenditures and working capital needs for our operations as
presently conducted. However, our future liquidity and cash requirements will
depend on a wide range of factors, including the level of business in existing
operations, expansion of facilities, and possible acquisitions. While there
can be no assurance that such financing will be available in amounts and on
terms acceptable to us, we believe that such financing would likely be
available on acceptable terms.
Item 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
While we had no holdings of derivative financial or commodity instruments
at September 30, 2000, we are exposed to financial market risks, including
changes in interest rates. A majority of our borrowings bear a fixed interest
rate. However, borrowings under our bank Credit Facility bears interest
at a variable rate based on the prime rate or the London Interbank
Offered Rate.
12
<PAGE>
REPTRON ELECTRONICS, INC.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits
None
b. Reports on Form 8-K
None
13
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Dated: November 12, 2000
REPTRON ELECTRONICS, INC.
(Registrant)
By: /s/ Michael Branca
-------------------------------
Michael Branca Chief Financial
Officer
(Principal Financial and Accounting
Officer)
14
<PAGE>
