<PAGE> 1
U.S. Securities and Exchange Commission
Washington, D.C. 20549
------------------------------------------------------------
Form 10-QSB
(Mark One)
[ x ] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1998
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1943
For the transition period from to
Commission file number 0-23898
------------------------------------------------------------
MITY-LITE, INC.
(Exact name of small business issuer as specified in its charter)
Utah 87-0448892
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1301 West 400 North
Orem, Utah 84057
(Address of principal executive offices)
Issuer's telephone number: (801) 224-0589
N/A
(Former name, former address and former fiscal year, if changed since last
report)
------------------------------------------------------------
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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
There were 3,268,638 shares of the registrant's Common Stock, par value
$.01 per share, outstanding on July 30, 1998.
TRANSITIONAL SMALL BUSINESS DISCLOSURE FORMAT (Check one:) Yes No x
<PAGE> 2
MITY-LITE, INC.
INDEX
Part I. Financial Information
Item 1. Financial Statements (Unaudited)
Balance Sheets as of June 30, 1998 and March 31, 1998. . . . . . 2
Statements of Income for the three months ended
June 30, 1998 and June 30, 1997 . . . . . . . . . . . . . . . 3
Statements of Cash Flows for the three months ended
June 30, 1998 and June 30, 1997 . . . . . . . . . . . . . . . 4
Notes to Financial Statements. . . . . . . . . . . . . . . . . . 5
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations. . . . . . . . . . . . . . . . . . . . 7
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . 11
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
<PAGE> 3
PART I: FINANCIAL INFORMATION
Item 1. Financial Statements
MITY-LITE, INC.
BALANCE SHEETS
(unaudited)
June 30, March 31,
ASSETS 1998 1998
------------ ------------
Current assets:
Cash and cash equivalents. . . . . . . . $ 9,815,000 $ 9,266,000
Available-for-sale securities . . . . . 1,703,000 1,207,000
Accounts receivable, less allowance of
$270,000 at June 30, 1998 and $259,000
at March 31, 1998. . . . . . . . . . . 3,264,000 2,586,000
Inventories. . . . . . . . . . . . . . . 923,000 960,000
Prepaid expenses and other current
assets . . . . . . . . . . . . . . . . 104,000 324,000
Deferred income taxes. . . . . . . . . . 192,000 192,000
------------ ------------
Total current assets . . . . . . . . . . . . 16,001,000 14,535,000
Property and equipment, net. . . . . . . . . 1,881,000 1,912,000
Note receivable from affiliate . . . . . . . 1,000,000 1,000,000
Investment in affiliate. . . . . . . . . . . 1,223,000 1,108,000
Intangibles. . . . . . . . . . . . . . . . . 1,000 1,000
------------ ------------
Total Assets . . . . . . . . . . . . . . . . $20,106,000 $18,556,000
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable . . . . . . . . . . . . $ 1,149,000 $ 1,144,000
Accrued expenses . . . . . . . . . . . . 993,000 496,000
------------ ------------
Total current liabilities. . . . . . . . . . 2,142,000 1,640,000
Deferred income tax liabilities. . . . . . . 139,000 97,000
Stockholders' equity:
Preferred stock, par value $.10 per
share; authorized 3,000,000 shares; no
shares issued and outstanding. . . . . -- --
Common stock, par value $.01 per share;
authorized 10,000,000 shares; issued
and outstanding 3,267,851 at June 30,
1998 and 3,260,585 at March 31, 1998 . 33,000 33,000
Additional paid-in capital . . . . . . . 7,802,000 7,721,000
Retained earnings. . . . . . . . . . . . 9,990,000 9,065,000
------------ ------------
Total stockholders' equity . . . . . . . . 17,825,000 16,819,000
------------ ------------
Total liabilities and stockholders' equity . $20,106,000 $18,556,000
============ ============
See accompanying notes to financial statements.
<PAGE> 4
MITY-LITE, INC.
STATEMENTS OF INCOME
(unaudited)
Three months ended June 30,
1998 1997
------------ ------------
Net sales . . . . . . . . . . . . . . . . . . $ 7,664,000 $ 6,296,000
Cost of products sold . . . . . . . . . . . . 4,911,000 3,873,000
------------ ------------
Gross profit. . . . . . . . . . . . . . . . . 2,753,000 2,423,000
Expenses:
Selling . . . . . . . . . . . . . . . . . 982,000 940,000
General and administrative. . . . . . . . 304,000 250,000
Research and development. . . . . . . . . 119,000 104,000
------------ ------------
Total operating expenses. . . . . . . . 1,405,000 1,294,000
------------ ------------
Income from operations. . . . . . . . . . . . 1,348,000 1,129,000
Other income (expense):
Investment income . . . . . . . . . . . . 111,000 85,000
Equity in income of affiliate . . . . . . 140,000 33,000
Other . . . . . . . . . . . . . . . . . . (13,000) --
------------ ------------
Total other income, net . . . . . . . . . . . 238,000 118,000
------------ ------------
Income before provision for income taxes. . . 1,586,000 1,247,000
Provision for income taxes. . . . . . . . . . 587,000 461,000
------------ ------------
Net income. . . . . . . . . . . . . . . . . . $ 999,000 $ 786,000
============ ============
Basic earnings per share. . . . . . . . . . . $ 0.31 $ 0.25
============ ============
Weighted average number of common
shares - basic. . . . . . . . . . . . . . . 3,267,851 3,190,198
============ ============
Diluted earnings per share. . . . . . . . . . $ 0.29 $ 0.24
============ ============
Weighted average common and common
equivalent shares - diluted . . . . . . . 3,414,246 3,340,175
============ ============
See accompanying notes to financial statements.
<PAGE> 5
MITY-LITE, INC.
STATEMENTS OF CASH FLOWS
(unaudited)
Three months ended June 30,
1998 1997
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income . . . . . . . . . . . .. . . . . . $ 999,000 $ 786,000
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation . . . . . . . . . . . . . . . 132,000 113,000
Loss on disposition of equipment . . . . . 13,000 --
Deferred tax expense . . . . . . . . . . . 42,000 2,000
Equity in income of affiliate. . . . . . . (140,000) (33,000)
Tax benefit from exercise of stock options 24,000 100,000
Changes in assets and liabilities:
Accounts receivable. . . . . . . . . . . (678,000) (640,000)
Inventories. . . . . . . . . . . . . . . 37,000 (138,000)
Prepaid expenses and other current assets 256,000 (2,000)
Accounts payable . . . . . . . . . . . . 5,000 182,000
Accrued expenses and other . . . . . . . 497,000 489,000
------------ ------------
Net cash provided by operating activities. . . 1,187,000 859,000
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of available-for-sale securities. . . (496,000) --
Investment in and cash received from affiliate 25,000 (6,000)
Purchases of property and equipment. . . . . . (150,000) (202,000)
------------ ------------
Net cash used in investing activities. . . . . (621,000) (208,000)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase and retirement of common stock . . . (85,000) --
Net proceeds from exercise of stock options . 68,000 105,000
------------ ------------
Net cash (used in) provided by financing
activities. . . . . . . . . . . . . . . . . (17,000) 105,000
------------ ------------
Net increase in cash and cash equivalents . . 549,000 756,000
Cash and cash equivalents at beginning of
period . . . . . . . . . . . . . . . . . . . 9,266,000 7,646,000
------------ ------------
Cash and cash equivalents at end of period . . $ 9,815,000 $ 8,402,000
============ ============
See accompanying notes to financial statements.
<PAGE> 6
MITY-LITE, INC.
NOTES TO FINANCIAL STATEMENTS
(unaudited)
1. BASIS OF PRESENTATION
Interim Period Accounting Policies
In the opinion of the Company's management, the accompanying unaudited
financial statements contain all normal recurring adjustments necessary to
present fairly the Company's financial position for the interim period.
Results of operations for the three months ended June 30, 1998 are not
necessarily indicative of results to be expected for the full fiscal year
ending March 31, 1999.
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for annual financial
statements. Although the Company believes that the disclosures in these
unaudited financial statements are adequate to make the information presented
for the interim periods not misleading, certain information and footnote
information normally included in annual financial statements prepared in
accordance with generally accepted accounting principles have been condensed
or omitted pursuant to the rules and regulations of the Securities and
Exchange Commission, and these financial statements should be read in
conjunction with the Company's audited financial statements included in the
Company's annual report to shareholders for the fiscal year ended March 31,
1998.
2. INVENTORIES
Inventories consisted of the following:
June 30, March 31,
1998 1998
------------ ------------
Materials and supplies . . . . $ 767,000 $ 812,000
Work-in-progress . . . . . . . 70,000 58,000
Finished goods . . . . . . . . 85,000 90,000
------------ ------------
$ 923,000 $ 960,000
============ ============
3. Recently Issued Financial Accounting Standards
Effective April 1, 1998, the Company adopted Statement of Financial
Accounting Standards No. 130, "Reporting Comprehensive Income." This
Statement establishes standards for reporting and displaying comprehensive
income and its components (revenues, expenses, gains and losses) in a full set
of general-purpose financial statements. This Statement requires the
classification of items of comprehensive income by their nature in a financial
statement and the accumulated balance of other comprehensive income separately
from retained earnings and additional paid-in capital in the equity section of
the balance sheet. For the three months ended June 30, 1998 and 1997,
comprehensive income is the same as net income since the fair value of
available-for-sale securities approximates their cost.
<PAGE> 7
In June 1997, the FASB issued SFAS No. 131, "Disclosure about Segments of
an Enterprise and Related Information," which supercedes FASB Statement No.
14, "Financial Reporting for Segments of a Business Enterprise" and changes
the way public companies report information about operating segments. SFAS No.
131, which is based on the management approach to segment reporting,
establishes requirements to report selected segment information quarterly and
to report entity-wide disclosures about products and services, major customers
and the material countries in which the entity holds assets and reports
revenue. Management is currently evaluating the effects of this change on its
reporting of segment information. The Company will adopt SFAS No. 131 for its
fiscal year ending March 31, 1999.
In June 1998, the FASB issued SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities," which supersedes SFAS No. 80, "Accounting
for Future Contracts," SFAS No. 105, "Disclosure of Information about
Financial Instruments with Off-Balance-Sheet Risk and Financial Instruments
with Concentration of Credit Risk," and SFAS No. 119, "Disclosure about
Derivative Financial Instruments and Fair Value of Financial Instruments," and
also amends certain aspects of other SFASs previously issued. This statement
is effective for all fiscal quarters of fiscal years beginning after June 15,
1999. This statement establishes accounting and reporting standards for
derivative instruments and hedging activities. It requires that an entity
recognize all derivatives as either assets or liabilities in the statement of
financial position and measure those instruments at fair value. Management
does not believe this statement will have a significant impact on the Company.
Item 2.
Management's Discussion and Analysis of Financial Condition
and Results of Operations
GENERAL
The Company designs, manufactures and markets lightweight, durable,
folding leg tables, stacking chairs, and other related products used in
multi-purpose rooms of educational, recreational, hotel and hospitality,
government, office, health care, religious and other public assembly
facilities. Historically, the Company's growth has come from an expanding
base of new customers and from increasing sales to existing customers. The
Company's current and future growth is largely dependent upon its ability to
continue increasing table sales to new and existing customers and its ability
to successfully introduce and market new product lines of multi-purpose room
furniture such as chairs, staging, flooring, partitions, podiums, risers and
bench seating. The Company anticipates that over the next 12 months, its
primary business strategy and emphasis will be on acquiring and introducing
chair products while continuing to expand its share of the folding leg table
market.
The Company currently markets five lines of stacking chairs, the
MityTuff(TM), the MityStack(TM), the MityFlex(TM), the MityDeluxe(TM), and the
MityHost(TM). The MityTuff(TM) and MityStack(TM) chairs are distributed by
the Company under original equipment manufacturer (OEM) arrangements with the
chair manufacturers. Portions of the MityFlex(TM) and the MityDeluxe(TM)
chairs are manufactured by the Company. In addition, the Company performs
final assembly on these two chair lines. The MityHost(TM) is manufactured by
the Company in its Orem, Utah facility.
<PAGE> 8
Net sales of the Company's table products have increased during the three
months ended June 30, 1998 as compared to the three months ended June 30,
1997. Management expects, but cannot assure, that this trend will continue.
Gross margins and expenses associated with chairs and other new product lines
are difficult to predict. The Company believes that profitability rates less
than those achieved on table products will be realized on complementary
products. However, no assurance can be given that these results will be
realized.
COMPARISON OF THE THREE MONTHS ENDED JUNE 30, 1998 AND 1997
NET SALES. The Company's first quarter of fiscal 1999 net sales of
$7,664,000 represented an increase of 22 percent over first quarter net sales
in the prior fiscal year. The increase reflected sales growth of 24 percent in
the table product lines, partially offset by an 8 percent sales decline in the
chair product lines. Domestic and international chair sales represented 7.2
percent and 9.6 percent of net sales for the first quarter ended June 30, 1998
and 1997, respectively. The decrease in chair sales resulted from a growing
backlog of MityTuff(TM) chair sales which the OEM supplier was unable to fill
due to production problems. The supplier was unable to fill any MityTuff(TM)
chair orders during the quarter. In late July 1998, the supplier represented
to Mity-Lite that its production problems have been resolved and it can once
again begin supplying chairs. International table and chair sales increased
124 percent over the prior year and represented 11.7 percent and 6.3 percent
of net sales for the first quarter ended June 30, 1998 and 1997, respectively.
The overall sales increase has resulted mainly from increased sales in the
hospitality and international markets.
GROSS PROFIT. Gross profit as a percentage of net sales decreased over
the prior year by 2.6 percentage points, to 35.9 percent for the three months
ended June 30, 1998. The majority of the decrease was caused by increasing
labor rates and decreasing labor efficiencies as a result of high turnover,
and increased plastics costs.
SELLING EXPENSES. Selling expenses were 12.8 percent of net sales in the
first quarter of fiscal 1999 as compared to 14.9 percent for the first quarter
of the prior fiscal year. The decrease in selling expenses as a percentage of
net sales resulted from higher productivity from the existing sales staff
coupled with lower spending on overhead personnel, adverting and literature.
Actual spending increased by 4.5 percent, or $42,000, resulting from higher
personnel and commission related costs.
GENERAL AND ADMINISTRATIVE EXPENSES. General and administrative expenses
for the first quarter of fiscal ended June 30, 1998 remained flat with the
previous year at 4.0 percent of net sales. Actual spending increased by 21.6
percent, or $54,000. The increase in spending resulted from increases in
personnel related expenses and the addition of total quality management and
training executive level position to the administrative staff.
RESEARCH AND DEVELOPMENT EXPENSES. Research and development expenses
were 1.6 percent of net sales in the first quarter of fiscal 1999 as compared
to 1.7 percent for the first quarter of the prior fiscal year. Actual
spending increased by 14.4 percent, or $15,000, resulting from increased
personnel related expenses.
OTHER INCOME AND EXPENSE. Other income and expense netted to $238,000 in
the first quarter of fiscal 1999. First quarter interest income was $111,000,
an increase of $26,000 from the first quarter of the prior fiscal year. The
increase was due to interest earned on greater average balances of cash, cash
<PAGE> 9
equivalents, and securities. In addition, the Company recognized income from
its investment in DO Group, Inc. of $140,000 as compared to $33,000 in the
prior fiscal year. These amounts represent Mity-Lite's proportionate share of
the DO Group's net income. Mity-Lite also recognized a loss of $13,000 from
the disposition of certain fixed assets.
NET INCOME. For reasons stated above, the Company's first quarter of
fiscal 1999 net income of $999,000 increased $213,000, or 27.1 percent over
first quarter net income in the prior fiscal year.
LIQUIDITY AND CAPITAL RESOURCES
Cash and cash equivalents, which consist primarily of high-quality
municipal bonds and tax-advantaged money market instruments, totaled $9.82
million at June 30, 1998 as compared to $9.27 million at March 31, 1998. In
addition, the Company holds available-for-sale securities totaling $1.70
million at June 30, 1998. The increase in cash and cash equivalents was due
primarily to cash generated from operations ($1.19 million), net proceeds
related to the exercise of stock options ($0.07 million), and interest
received from affiliate ($0.03 million). This increase was partially offset
by cash used to purchase highly liquid available-for-sale securities ($0.50
million), to purchase manufacturing and computer equipment, furniture, and
make certain leasehold improvements ($0.15 million) and to buy back small
amounts of the Company's common stock ($0.09 million).
In recent history, the Company has financed its growth through cash from
operations. In addition, the Company has revolving credit facilities with
Zions First National Bank and First Security Bank of Utah, N.A. The
agreements, which expire on December 1, 1998 and October 25, 1998,
respectively, allow the Company to draw up to a combined $5,000,000 under the
credit facilities. As of June 30, 1998, the Company had no amounts drawn
under these facilities. The credit facilities require the maintenance of
certain financial ratios and levels of working capital, all of which were met
as of June 30, 1998.
The Company believes that cash flow from its current operations together
with existing cash reserves will be sufficient to support its working capital
requirements for its existing operations for at least the next 12 months.
However, the Company's working capital requirements may significantly increase
if other acquisitions are consummated. No assurances can be given as to the
sufficiency of the Company's working capital to support the Company's
operations following any such acquisitions. Although the Company continues to
explore potential acquisitions, the Company has not entered into any
agreements, understandings, or commitments with respect to any potential
acquisitions. If the existing cash reserves, cash flow from operations and
debt financing are insufficient or if working capital requirements are greater
than estimated, the Company could be required to raise additional capital.
There can be no assurance the Company will be capable of raising additional
capital or that the terms upon which such capital will be available to the
Company will be acceptable. Additional sources of equity capital are
available to the Company through the exercise by holders of outstanding
options. At June 30, 1998, the proceeds which would have been received by the
Company upon exercise of outstanding options which were exercisable on that
date were approximately $582,000. There is no assurance that such options
will be exercised.
The Company's material cash commitments at June 30, 1998 consisted
primarily of current liabilities to be repaid from funds generated from
<PAGE> 10
operations. At June 30, 1998, the Company had total current liabilities of
$2,142,000. The Company has also entered into a lease agreement from a
related party for its production and office facility under which it is
obligated to pay $17,100 per month through March 2000.
INFORMATION SYSTEMS AND THE YEAR 2000
As is the case with most other companies using computers in their
operations, the Company is in the process of addressing the Year 2000 problem.
The Company is currently engaged in a comprehensive project to upgrade its
information, technology, manufacturing and facilities computer software to
programs that will consistently and properly recognize the Year 2000. Many of
the Company's systems include new hardware and packaged software recently
purchased from large vendors who have represented that these systems are
already Year 2000 compliant. The Company is in the process of testing these
systems and obtaining assurances from vendors that timely updates will be made
available to make all remaining purchased software and upgrades Year 2000
compliant.
The Company will utilize internal resources to test all of its software
for Year 2000 compliance and, where necessary, upgrade or replace noncompliant
systems. The Company expects to complete the project in early 1999. The
estimated cost of this project, including the cost of new systems which will
be capitalized, is less than $50,000. This cost will be funded though
operating cash flows. Failure by the Company and/or vendors and customers to
complete Year 2000 compliance work in a timely manner could have a material
adverse effect on certain of the Company's operations.
The costs of the project and the date on which the Company believes it
will complete the Year 2000 modifications are based on management's best
estimates, which were derived utilizing numerous assumptions of future events,
including the continued availability of certain resources, third party
modification plans and other factors. However, there can be no guarantee that
these estimates will be achieved and actual results could differ materially
from those anticipated. Specific factors that might cause such material
differences include, but are not limited to, the availability and cost of
personnel trained in this area, the ability to locate and correct all relevant
computer codes, and similar uncertainties.
FORWARD-LOOKING STATEMENTS AND FACTORS THAT MAY AFFECT FUTURE RESULTS OF
OPERATIONS
Certain statements made above in this Form 10-QSB are "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995 (the "Reform Act"). In addition, when used in this filing, the words
or phrases "may," "will," "Management believes," "Company believes," "Company
intends," "estimates," "projects," "anticipates," "expects" and similar
expressions are intended to identify "forward-looking statements" within the
meaning of the Reform Act.
Forward-looking statements contained herein include plans and objectives
of management for future operations, including plans and objectives relating
to the products, marketing, customers, product line expansions, manufacturing
process and potential acquisitions. These forward-looking statements involve
risks and uncertainties and are based on certain assumptions that may not be
realized. Actual results and outcomes may differ materially from those
discussed or anticipated. The forward-looking statements and associated risks
<PAGE> 11
set forth herein and elsewhere in this filing relate to: (i) the Company's
expectation that it will be able to expand its share of the market for
lightweight, durable, folding leg tables, (ii) the Company's anticipation that
it will become a qualified government vendor, (iii) the Company's intentions
to expand the international market for its products, (iv) the Company's plan
to enhance the productivity and efficiency of its manufacturing process, (v)
Management's belief that it will be able to continue to benefit from
relatively low cost labor, (vi) the Company's intention to expand and
introduce new product lines to existing customers, (vii) the Company's ability
to maintain its low product warranty obligations, (viii) the Company's
expectation that it will be able to expand into new market segments by
developing new products or acquiring other products or businesses in such
segments, (ix) the possibility that the Company may exercise its option to
acquire the remaining 50.1 percent of the DO Group, (x) the Company's
expectation of a continued profitable return on its equity interest in the DO
Group, and (xi) the Company's intention to continue to market products
directly to its end users.
All forward-looking statements involve predictions and are subject to
known and unknown risks and uncertainties, including, without limitation,
those discussed below as well as general economic and business conditions,
that could cause actual results to differ materially from historical earnings
and those presently anticipated or projected. Readers should not place undue
reliance on any such forward-looking statements, which speak only as of the
date made. The considerations listed below and elsewhere in this filing could
affect the Company's financial performance and could cause the Company's
actual results for future periods to differ materially from any views or
statements expressed with respect to future periods. Important factors and
risks that might cause such differences, include, but are not limited to (a)
lower than expected revenue, revenue growth and cash flow from operations
because of adverse economic or business conditions or the Company's inability,
for any reason, to introduce new products or implement its marketing
strategies, (b) management's ability to manage effectively the Company's
growth, (c) the Company's ability to expand successfully its international
markets, (d) import restrictions and economic conditions in the Company's
foreign markets, (e) competition in the Company's existing and future markets,
(f) increased expenditures required to address the Year 2000 issue if the
Company's technology requirements change, (g) the market's acceptance of
additional products such as multi-purpose room furniture, (h) the Company's
ability to maintain relatively low cost labor rates in a period of lower
unemployment, (i) the Company's ability to source acceptable raw materials at
current prices, (j) increased product warranty service costs if warranty
claims increase as a result of the Company's new manufacturing bonding process
or for any other reason, (k) the Company's ability to refine and enhance the
quality and productivity of its manufacturing process, and (l) the Company's
ability to manufacture and market at current margins high quality, high
performance products at competitive prices.
In light of the significant uncertainties inherent in forward-looking
statements, the inclusion of any such statement should not be regarded as a
representation by the Company or any other person that the objectives or plans
of the Company will be achieved. The Company disclaims any obligation or
intent to update any such factors or forward-looking statements to reflect
future events or developments.
<PAGE> 12
PART II: OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
11 Computation of Net Income per Share
27 Financial Data Schedule
(b) Reports on Form 8-K
None to report
<PAGE> 13
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
MITY-LITE, INC.
Date: August 5, 1998 /s/ Gregory L. Wilson
------------------------------------
Gregory L. Wilson
Chairman of the Board, President,
and Director (Principal Executive
Officer)
Date: August 5, 1998 /s/ Bradley T Nielson
------------------------------------
Bradley T Nielson
Chief Financial Officer
(Principal Financial and Accounting
Officer)
<PAGE> 1
STATEMENT OF COMPUTATION
OF NET INCOME PER SHARE
Three months ended
June 30,
1998 1997
------------ ------------
Net income as reported . . . . . . . . . . . $ 999,000 $ 786,000
============ ============
BASIC:
Weighted average number of common shares
outstanding. . . . . . . . . . . . . . . 3,267,851 3,190,198
============ ============
Basic earnings per share . . . . . . . . . $0.31 $0.25
============ ============
DILUTED:
Common and common equivalent shares outstanding:
Weighted average number of common shares
outstanding. . . . . . . . . . . . . . 3,267,851 3,190,198
Common stock equivalents from options computed
on the treasury-stock method using the average
fair market value of common stock during
the period . . . . . . . . . . . . . . 146,395 149,977
------------ ------------
Shares used in the computation . . . . . 3,414,246 3,340,175
============ ============
Diluted earnings per share. . . . . . . . . $0.29 $0.24
============ ============
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Balance Sheet at June 30, 1998 (unaudited) and Statements of Income for the
three months ended June 30, 1998 (unaudited) and is qualified in its entirety
by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-END> JUN-30-1998
<CASH> 9,815,000
<SECURITIES> 1,703,000
<RECEIVABLES> 3,534,000
<ALLOWANCES> (270,000)
<INVENTORY> 923,000
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0
0
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</TABLE>
