SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended Commission file number 2-44764
March 30, 1995
BALTEK CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 13-2646117
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
10 Fairway Court, P.O. Box 195, Northvale, New Jersey 07647
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 201-767-1400
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Indicated by check mark whether the registrant (1) has filed all
annual, quarterly and other reports required to be filed with the Commission and
(2) has been subject to the filing requirements for at least the past 90 days.
Yes [ X ] No [ ]
The number of shares outstanding as of May 5, 1995 the last practicable date,
was 2,523,261, Common Stock, $1.00 par value.
<PAGE>
BALTEK CORPORATION
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
UNAUDITED AUDITED
3/31195 12/31/94
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<S> <C> <C>
ASSETS
Current Assets
Cash ............................................... $ 921,865 $ 1,696,215
Accounts receivable-net ............................ 4,836,398 4,919,172
Inventones ......................................... 9,404,887 9,403,216
Prepaid expenses other current assets .............. 1,475,597 1,450,682
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TOTAL CURRENT ASSETS .............................. 16,638,747 17,469,285
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Property, plant and equipment-net ................... 10,956,058 10,935,665
Timber and timberlands .............................. 5,605,894 5,509,051
Other assets ........................................ 648,021 627,288
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TOTAL ............................................. $33,848,720 $34,541,289
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Notes payable ...................................... $ 1,403,953 $ 1,716,563
Accounts payable ................................... 1,621,033 1,889,096
Income tax payable ................................. 327,143 624,469
Accrued expenses and other liabilities ............. 1,191,229 1,446,514
Current portion of long term debt .................. 0 33,558
Current portion of obligation under
capital lease ...................................... 174,517 174,517
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TOTAL CURRENT LIABILITIES ......................... 4,717,875 5,884,717
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Obligation under capital lease ...................... 2,119,204 2,162,833
Long term debt ...................................... 581 7,319
Union employee termination benefits ................. 229,797 217,624
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TOTAL LIABILITIES ................................ 7,067,457 8,272,493
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Stockholders' Equity:
Preferred stock $100 par; 5,000,000 shares
authorized and unissued Common stock
$1.00 par; 10,000,000 shares authorized,
2,523,261 shares issued and outstanding ............ 2,523,261 2,523,261
Additional paid-in-capital ......................... 2,157,492 2,157,492
Retained earnings .................................. 22,100,510 21,588,043
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TOTAL STOCKHOLDERS' EQUITY ....................... 26,781,263 26,268,796
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TOTAL ............................................ $33,848,720 $34,541,289
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Note A: Classification of inventories are as follows:
Raw Materials ................................... $ 2,549,063 $ 2,580,806
Work-in-process ................................. 3,578,379 3,582,410
Finished goods .................................. 3,277,445 3,240,000
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TOTAL ........................................... $ 9,404,887 $ 9,403,216
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</TABLE>
<PAGE>
BALTEK CORPORATION AND SUBSIDIARIES
UNAUDITED STATEMENT OF CONSOLIDATED INCOME
AND RETAINED EARNINGS
<TABLE>
<CAPTION>
FOR THE THREE MONTH
PERIOD ENDED MARCH 31,
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1995 1994
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<S> <C> <C>
Net Sales .................................... $ 10,655,612 $ 9,012,520
Costs and expenses ........................... 9,764,610 8,637,497
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Income from operations ....................... 891,002 375,023
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Other Income (Expense)
Interest expense ............................ (93,085) (119,054)
Foreign exchange gain (loss) ................ 30,594 (57,786)
Other ....................................... 9,967 2,418
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Total Other Income (Expense) ................. (52,524) (174,422)
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Income before income taxes ................... 838,478 200,601
Income taxes ................................. 326,011 75,504
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NET INCOME ................................... $ 512,467 $ 125,097
Retained earnings beginning of the period .... 21,588,043 20,375,584
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Retained earnings end of the period .......... $ 22,100,510 $ 20,500,681
============ ============
Average shares outstanding ................... 2,523,261 2,523,261
============ ============
Net income per common share .................. $ 0.20 $ 0.05
============ ============
</TABLE>
<PAGE>
BALTEK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
FOR THE THREE MONTHS
ENDED MARCH 31,
1995 1994
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<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income ....................................... $ 512,467 $ 125,097
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization ................... 507,618 536,041
Foreign exchange loss (gain) .................... (30,594) 57,786
Decrease (increase) in accounts receivable ...... 83,597 (538,892)
Decrease (increase) in inventories .............. (1,671) 237,980
Decrease (increase) in prepaid expenses
and other current assets ....................... (42,651) (363,593)
Decrease (increase) in other assets ............. 4,268 2,783
Decrease (increase) in income taxes ............. (293,278) 53,485
Increase (decrease) in accounts payable
and accrued expenses ........................... (522,114) 853,439
Increase (decrease) in deferred taxes ........... (7,026) (9,523)
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Net cash provided by operating activities ........ 210,616 954,603
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CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions-net (including timber and
timberlands) .................................... (624,854) (333,249)
Other ............................................ 12,335 17,815
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Net cash used in investing activities ............ (612,519) (315,434)
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CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (decrease) in notes payable ............ (329,037) 109,356
Increase (decrease) in long term debt ........... (24,095) (19,874)
Principal payments under capital leases ......... (43,629) (36,935)
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Net cash from (used in) financing activities ..... (396,761) 52,547
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Effect of exchange rate changes on cash .......... 24,313 (51,442)
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Net increase (decrease) in cash .................. (774,350) 640,274
CASH AT BEGINNING OF THE PERIOD .................. 1,696,215 518,797
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CASH AT THE END OF THE PERIOD .................... $ 921,865 $ 1,159,071
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Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest ........................................ $ 50,710 $ 61,200
Income taxes paid ............................... $ 615,094 $ 4,290
</TABLE>
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
Liquidity, as measured by the Company's working capital
(current assets divided by current liabilities), increased from 3.0:1 on
December 31, 1994 to 3.5:1 on March 31, 1995, due mostly to a decrease in
current liabilities. Unused lines of credit from banks and the company's working
capital are considered by management, to be sufficient to support operations and
fixed asset acquisitions for the immediate future.
RESULTS OF OPERATIONS
Net sales increased by 18% during the first quarter of 1995 as compared
to 1994. Increased demand for all of the Company's products contributed to this
increase. The Company is unable to predict whether this favorable trend will
continue for the balance of 1995.
Costs and expenses, as a percentage of sales, declined by 4.2% during
the quarter ended March 31, 1995 due to the more complete utilization of fixed
costs as a result of increased sales.
Interest expense declined slightly due to decreased borrowings for
working capital purposes, partially offset by higher interest rates.
For the reasons discussed above, the Company realized a net income of
$512,467 for the first quarter of 1995, as compared to a net income of $125,097
for the same period in 1994.
<PAGE>
BALTEK CORPORATION AND SUBSIDIARIES
NOTE REGARDING UNAUDITED STATEMENT OF CONSOLIDATED INCOME AND RETAINED EARNINGS
Information furnished in our Form 10-Q for the quarter March 30, 1995 reflects
all adjustments which are, in the opinion of management, necessary to a fair
statement of the results for the interim periods. The adjustments that were made
consisted of only normal recurring accruals.
********************************
No Form 8-K was filed in the first quarter of 1995.
<PAGE>
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.
BALTEK CORPORATION
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(Registrant)
s/Jacques Kohn
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Date: May 5, 1995 (Signature)
s/Benson J. Zeikowitz
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Date: May 5, 1995 (Signature)
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> 921,865
<SECURITIES> 0
<RECEIVABLES> 4,946,782
<ALLOWANCES> 110,384
<INVENTORY> 9,404,887
<CURRENT-ASSETS> 16,638,747
<PP&E> 26,769,126
<DEPRECIATION> 15,813,069
<TOTAL-ASSETS> 33,848,720
<CURRENT-LIABILITIES> 4,717,875
<BONDS> 0
<COMMON> 2,523,261
0
0
<OTHER-SE> 24,258,002
<TOTAL-LIABILITY-AND-EQUITY> 33,848,720
<SALES> 10,655,612
<TOTAL-REVENUES> 10,655,612
<CGS> 7,303,145
<TOTAL-COSTS> 9,764,610
<OTHER-EXPENSES> 52,524
<LOSS-PROVISION> 26,768
<INTEREST-EXPENSE> 93,085
<INCOME-PRETAX> 838,478
<INCOME-TAX> 326,011
<INCOME-CONTINUING> 512,467
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 512,467
<EPS-PRIMARY> 0.20
<EPS-DILUTED> 0.20
</TABLE>
