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FORM 10-K/A
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED MAY 31, 1996
COMMISSION FILE NUMBER 0-26784
SPEEDFAM INTERNATIONAL, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
ILLINOIS 36-2421613
(STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
7406 WEST DETROIT 85226
CHANDLER, ARIZONA (ZIP CODE)
(ADDRESS OF PRINCIPAL EXECUTIVE
OFFICES)
REGISTRANT'S TELEPHONE NUMBER: (602) 961-2175
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
NONE
SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:
COMMON STOCK, NO PAR VALUE
(TITLE OF CLASS)
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
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to
the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. [ ]
State the aggregate market value of the voting stock held by non-affiliates
of the registrant: $69,177,956 as of August 9, 1996.
Indicate the number of shares outstanding of each of the issuer's classes of
common stock: 10,570,077 as of August 9, 1996.
DOCUMENTS INCORPORATED BY REFERENCE:
Part III, Proxy Statement relating to 1996 Annual Meeting of Shareholders
(except for the Report of the Compensation Committee of the Board of Directors
and the Performance Graph).
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TABLE OF CONTENTS
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ITEM
NO. CAPTION PAGE
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PART IV
<C> <S> <C>
Exhibits, Financial Statement Schedules, and Reports on Form 8-
14. K............................................................... 1
Signatures...................................................... 2
List of Exhibits................................................ EXHIBIT
INDEX
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PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K.
(a)(1) Financial Statements:
See Part II, Item 8
(2) Financial Statement Schedules:
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PAGE
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Report of Independent Public Accountants............................. S-1
Schedule I........................................................... S-2
Schedule II.......................................................... S-4
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(3) Exhibits filed:
See Exhibit Index.
(b)Reports filed on Form 8-K:
None.
(c)Exhibits filed:
See Exhibit Index.
(d)Financial Statements Omitted from Annual Report to Security Holders:
None.
1
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SIGNATURES
PURSUANT TO THE REQUIREMENTS OF SECTION 13 OR 15(d) 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.
SpeedFam International, Inc.
/s/ James N. Farley
_____________________________________
James N. Farley
Chairman of the Board and Chief
Executive Officer
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THIS
REPORT SIGNED BELOW BY THE FOLLOWING PERSONS ON BEHALF OF THE REGISTRANT AND
IN THE CAPACITIES AND ON THE DATES INDICATED.
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<CAPTION>
NAME TITLE DATE
---- ----- ----
<S> <C> <C>
/s/ James N. Farley Chairman, Chief Executive October 16, 1996
____________________________________ Officer and Director
James N. Farley
/s/ Makoto Kouzuma President, Chief Operating October 16, 1996
____________________________________ Officer and Director
Makoto Kouzuma
/s/ Roger K. Marach Treasurer, Assistant October 16, 1996
____________________________________ Secretary and Chief
Roger K. Marach Financial Officer
(Principal financial and
accounting officer)
/s/ Neil R. Bonke Director October 16, 1996
____________________________________
Neil R. Bonke
/s/ Thomas J. McCook Director October 16, 1996
____________________________________
Thomas J. McCook
/s/ Stuart Meyer Director October 16, 1996
____________________________________
Dr. Stuart Meyer
/s/ Robert Miller Director October 16, 1996
____________________________________
Robert Miller
/s/ Carl S. Pedersen Director October 16, 1996
____________________________________
Carl S. Pedersen
</TABLE>
2
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INDEPENDENT AUDITORS' REPORT
The Board of Directors
SpeedFam International, Inc.:
Under date of July 3, 1996, we reported on the consolidated balance sheets
of SpeedFam International, Inc. and consolidated subsidiaries as of May 31,
1995 and 1996, and the related consolidated statements of earnings,
shareholders' equity, and cash flows for each of the years in the three-year
period ended May 31, 1996, which are included in the Form 10-K. In connection
with our audits of the aforementioned consolidated financial statements, we
also audited the related consolidated financial statement schedules as listed
in Item 14(a)(2) of the Form 10-K. These financial statement schedules are the
responsibility of the Company's management. Our responsibility is to express
an opinion on these financial statement schedules based on our audits.
In our opinion, such financial statement schedules, when considered in
relation to the basic consolidated financial statements taken as a whole,
present fairly, in all material respects, the information set forth therein.
KPMG Peat Marwick LLP
July 3, 1996
Chicago, Illinois
S-1
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SCHEDULE I
SPEEDFAM INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED FINANCIAL INFORMATION OF
SPEEDFAM INTERNATIONAL, INC.
BALANCE SHEETS
(DOLLARS IN THOUSANDS)
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<CAPTION>
MAY 31,
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1995 1996
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ASSETS
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Current assets:
Cash and cash equivalents.................................... $ 1 $ 7,228
Due from affiliated companies................................ 173 16,699
Prepaid expenses and other current assets.................... 536 1,762
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Total current assets........................................... 709 25,689
Investments in subsidiaries and affiliates..................... 27,468 35,595
Property, plant and equipment, net............................. 54 2,624
Other assets................................................... 670 820
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$28,901 $64,728
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LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
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Current liabilities:
Current portion of long-term debt............................ $ 207 $ 400
Accounts payable............................................. 156 149
Due to affiliates............................................ 4,486 2
Accrued expenses............................................. 328 770
Income taxes................................................. 317 1,381
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Total current liabilities...................................... 5,494 2,702
Long-term debt................................................. 534 2,000
Deferred income taxes.......................................... 253 420
Stockholders' equity........................................... 22,620 59,606
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$28,901 $64,728
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</TABLE>
STATEMENTS OF EARNINGS
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<CAPTION>
YEARS ENDED,
-----------------------
1994 1995 1996
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<S> <C> <C> <C>
Revenue................................................ $ 71 $ 96 $ 22
Cost and operating expenses............................ 798 648 251
Other income (expense)................................. 251 (151) 342
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Earnings (loss) before income taxes and equity in net
earnings of subsidiaries and affiliates............... (476) (703) 113
Income tax expense (benefit)........................... (379) (3) 51
Equity in net earnings of subsidiaries and affiliates.. 2,325 2,275 11,664
------ ------ -------
Net earnings........................................... $2,228 $1,575 $11,726
====== ====== =======
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S-2
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SPEEDFAM INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED FINANCIAL INFORMATION OF
SPEEDFAM INTERNATIONAL, INC.
STATEMENT OF CASH FLOWS
(DOLLARS IN THOUSANDS)
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<CAPTION>
YEARS ENDED,
--------------------------
1994 1995 1996
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<S> <C> <C> <C>
Cash flows from operating activities:
Net earnings..................................... $ 2,228 $ 1,575 $ 11,726
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Equity in net earnings of subsidiaries and
affiliates.................................... (2,325) (2,275) (11,664)
Depreciation and amortization.................. 90 92 117
Provision for deferred income taxes............ (302) (75) (1,121)
Gains on sales of assets....................... (7) (15) --
Increase in cash surrender value............... (119) (138) (142)
Gain on disposal of FamTec A.G................. (411) -- --
Change in assets and liabilities............... 1,055 1,037 (19,368)
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Cash flows (used in) provided by operating
activities...................................... 209 201 (20,452)
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Cash flows from investing activities:
Capital expenditures........................... (80) (42) (2,589)
Proceeds from sales of assets.................. 21 42 --
Dividends from subsidiaries and affiliates..... 77 90 163
Other investing activities..................... (28) (32) (22)
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Net cash provided by (used in) investing
activities........................................ (10) 58 (2,448)
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Cash flows from financing activities:
Treasury transactions, net....................... 8 (35) 17
Net proceeds from issuance of common stock....... -- -- 28,284
Proceeds from exercise of stock options.......... -- -- 254
Proceeds from long-term debt..................... -- -- 2,500
Principal payments on long-term debt............. (267) (224) (928)
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Net cash provided by (used in) financing
activities........................................ (259) (259) 30,127
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Net increase (decrease) in cash and cash
equivalents....................................... (60) -- 7,227
Cash and cash equivalents at beginning of year..... 61 1 1
------- ------- --------
Cash and cash equivalents at end of year........... $ 1 $ 1 $ 7,228
======= ======= ========
</TABLE>
S-3
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SCHEDULE II
SPEEDFAM INTERNATIONAL, INC.
VALUATION AND QUALIFYING ACCOUNTS
FOR EACH OF THE YEARS IN THE THREE-YEAR PERIOD ENDED MAY 31, 1995
(DOLLARS IN THOUSANDS)
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<CAPTION>
CHARGED CHARGED TO
TO OTHER ACCOUNTS DEDUCTIONS
BALANCE AT COSTS (TRANSLATION (WRITE-OFFS BALANCE
BEGINNING AND ADJUSTMENT AND AND AT END
DESCRIPTION OF YEAR EXPENSE RECOVERIES) ADJUSTMENTS) OF YEAR
----------- ---------- ------- -------------- ------------ -------
<S> <C> <C> <C> <C> <C>
Allowance for doubtful
accounts:
1994.................. $209 7 (7) 17 $ 192
1995.................. $192 3 7 15 $ 187
1996.................. $187 314 -- 6 $ 495
<CAPTION>
CHARGED
TO CHARGED TO DEDUCTIONS
BALANCE AT COSTS OTHER ACCOUNTS (WRITE- BALANCE
BEGINNING AND (TRANSLATION OFFS OF AT END
DESCRIPTION OF YEAR EXPENSE ADJUSTMENTS) INVENTORY) OF YEAR
----------- ---------- ------- -------------- ------------ -------
<S> <C> <C> <C> <C> <C>
Inventory obsolescence:
1994.................. $826 4 (4) 665 $ 161
1995.................. $161 305 7 121 $ 352
1996.................. $352 1,804 -- 1,097 $1,059
<CAPTION>
CHARGED
TO
BALANCE AT COSTS BALANCE
BEGINNING AND CHARGED TO DEDUCTIONS AT END
DESCRIPTION OF YEAR EXPENSE OTHER ACCOUNTS FROM RESERVE OF YEAR
----------- ---------- ------- -------------- ------------ -------
<S> <C> <C> <C> <C> <C>
Warranty reserve:
1994.................. $160 420 -- 100 $ 480
1995.................. $480 (145) -- 135 $ 200
1996.................. $200 2,285 -- -- $2,485
</TABLE>
S-4
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EXHIBIT INDEX
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EXHIBIT
NUMBER DESCRIPTION
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3.1 Articles of Incorporation of the Registrant (incorporated by
reference to Exhibit 3.1 to the Registrant's Registration
Statement on Form S-1, File No. 33-95628).
*3.2 Amended Bylaws of the Registrant.
*10.1 Revolving Credit Agreement between the Registrant and The First
National Bank of Chicago and Firstar Bank Milwaukee, N.A. dated
April 15, 1996.
10.2 Joint Venture Agreement between the Registrant and Obara
Corporation, dated November 14, 1970 (incorporated by reference
to Exhibit 10.3 to the Registrant's Registration Statement on
Form S-1, File No. 33-95628).
10.3 License and Technical Service Agreement between the Registrant
and SpeedFam Co., Ltd., dated November 14, 1970 (incorporated by
reference to Exhibit 10.4 to the Registrant's Registration
Statement on Form S-1, File No. 33-95628).
10.4 Amendment to License and Technical Service Agreement between the
Registrant and SpeedFam Co., Ltd., dated July 24, 1995
(incorporated by reference to Exhibit 10.5 to the Registrant's
Registration Statement on Form S-1, File No. 33-95628).
10.5 Joint Venture Agreement between the Registrant and Fujimi
Incorporated, dated September 7, 1984 (incorporated by reference
to Exhibit 10.6 to the Registrant's Registration Statement on
Form S-1, File No. 33-95628).
10.6 Distributorship Agreement between the Registrant and Fujimi
Incorporated, dated October 1, 1994 (incorporated by reference
to Exhibit 10.7 to the Registrant's Registration Statement on
Form S-1, File No. 33-95628).
10.7 Amendment to Distributorship Agreement between the Registrant
and Fujimi Incorporated, dated August 3, 1995 (incorporated by
reference to Exhibit 10.8 to the Registrant's Registration
Statement on Form S-1, File No. 33-95628).
10.8 Registrant's 1991 Stock Option Plan ("1991 Plan") (incorporated
by reference to Exhibit 10.9 to the Registrant's Registration
Statement on Form S-1, File No. 33-95628).
10.9 Registrant's 1995 Stock Option Plan ("1995 Plan") (incorporated
by reference to Exhibit 10.10 to the Registrant's Registration
Statement on Form S-1, File No. 33-95628).
10.10 Registrant's 1995 Stock Purchase Plan (incorporated by reference
to Exhibit 10.11 to the Registrant's Registration Statement on
Form S-1, File No. 33-95628).
10.11 SpeedFam Employees' Savings and Profit Sharing Plan and Trust,
as amended and restated June 1, 1989 (incorporated by reference
to Exhibit 10.12 to the Registrant's Registration Statement on
Form S-1, File No. 33-95628).
10.12 Employment Agreement between the Registrant and James N. Farley
(incorporated by reference to Exhibit 10.13 to the Registrant's
Registration Statement on Form S-1, File No. 33-95628).
10.13 Employment Agreement between the Registrant and Makoto Kouzuma
(incorporated by reference to Exhibit 10.14 to the Registrant's
Registration Statement on Form S-1, File No. 33-95628).
10.14 Employment Agreement between the Registrant and Roger K. Marach
(incorporated by reference to Exhibit 10.15 to the Registrant's
Registration Statement on Form S-1, File No. 33-95628).
10.15 Employment Agreement between the Registrant's subsidiary and
Christopher E. Augur (incorporated by reference to Exhibit 10.16
to the Registrant's Registration Statement on Form S-1, File No.
33-95628).
</TABLE>
1
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<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
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<C> <S> <C>
10.16 Employment Agreement between the Registrant's subsidiary and
Robert F. Smith (incorporated by reference to Exhibit 10.17 to
the Registrant's Registration Statement on Form S-1,
File No. 33-95628).
*11.1 Statement Re Computation of Per Share Earnings.
21.1 Subsidiaries of the Registrant (incorporated by reference to
Exhibit 21.1 to the Registrant's Registration Statement on Form
S-1, File No. 33-95628).
*23.1 Consent of KPMG Peat Marwick LLP.
27.1 Financial Data Schedule
</TABLE>
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*Previously filed.
2
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1996
<PERIOD-START> JUN-01-1995
<PERIOD-END> MAY-31-1996
<CASH> 10,871
<SECURITIES> 0
<RECEIVABLES> 34,693
<ALLOWANCES> 495
<INVENTORY> 27,931
<CURRENT-ASSETS> 75,965
<PP&E> 9,969
<DEPRECIATION> 4,328
<TOTAL-ASSETS> 107,984
<CURRENT-LIABILITIES> 44,772
<BONDS> 0
<COMMON> 1
0
0
<OTHER-SE> 60,038
<TOTAL-LIABILITY-AND-EQUITY> 107,984
<SALES> 113,880
<TOTAL-REVENUES> 120,170
<CGS> 78,661
<TOTAL-COSTS> 109,079
<OTHER-EXPENSES> 208
<LOSS-PROVISION> 314
<INTEREST-EXPENSE> 691
<INCOME-PRETAX> 10,883
<INCOME-TAX> 4,266
<INCOME-CONTINUING> 6,617
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 11,821
<EPS-PRIMARY> 1.16
<EPS-DILUTED> 0
</TABLE>
