SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For quarter ended August 31, 1995
Commission File Number 0-3498
TAYLOR DEVICES, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
NEW YORK 16-0797789
(State or other Jurisdiction of (I.R.S. Employer Identification
incorporation or organization) Number)
90 TAYLOR DRIVE, NORTH TONAWANDA, NEW YORK 14120-0748
Address of principal executive offices
Registrant's telephone number, including area code -
716-694-0800
Indicate by check mark whether the registrant (1) has filed all
annual, quarterly, and other reports required to be filed with
all the Commission and (2) has been subject to the filing
requirements for at least the past 90 days.
Yes [ X ] No [ ]
Indicate the number of shares outstanding, of each of the
Issuer's classes of common stock as of the close of the period
covered by this report.
CLASS Outstanding at August 31, 1995
Common Stock 2,657,427
(2-1/2 cents par value)
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FORM 10-QSB
TAYLOR DEVICES, INC. - INDEX
PART I - FINANCIAL INFORMATION
PAGE NO.
Item 1. Financial Statements
Consolidated Condensed Balance Sheets 3
August 31, 1995, and May 31, 1995
Consolidated Condensed Statements of Income 4
for three months ended August 31, 1995
and August 31, 1994
Consolidated Condensed Statement of 5
Cash Flows - three months ended August 31, 1995
and August 31, 1994
Notes to Consolidated Condensed Financial 6
Statements
Item 2. Management's Discussion and Analysis of the 7
Financial Condition and Results of Operations
PART II - OTHER INFORMATION
Item 1. Legal Proceedings 9
Item 2. Changes in Securities 9
Item 3. Defaults upon Senior Securities 9
Item 4. Submission of Matters to Vote of 9
Security Holders
Item 5. Other Information 9
Item 6. Exhibits and Report on Form 8-K 9
SIGNATURES 10
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FORM 10-QSB
TAYLOR DEVICES, INC. - CONSOLIDATED BALANCE SHEET
ASSETS 8/31/95 5/31/95
Current
Cash $ 792,788 $ 915,294
Funds Held By Trustee 312,784 627,591
Trade Accounts Receivable 1,317,615 793,046
Inventories 2,049,902 2,113,555
Prepaid and Refundable Income Taxes (31,546) 152,377
Prepaid Expenses 89,281 147,515
Total Current Assets $4,530,824 $4,749,378
Investments - Affiliate, at equity 146,618 141,643
Property and Equipment - Net 2,390,864 1,957,422
Other Assets
Other 529,213 391,134
Total Other Assets $ 529,213 $ 391,134
TOTAL ASSETS $7,597,519 $7,239,577
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Current Portion of Long Term Debt $ 286,624 $ 277,396
Payables - Trade 683,996 758,162
Affiliate-Current 63,933 56,334
Construction-in-Progress 227,750 303,898
Accrued Income Tax 56,971 63,816
Accrued Expenses 222,334 142,563
Advanced Payments - Customers 797,379 570,469
Total Current Liabilities $2,338,987 $2,172,638
Non Current
Long Term Debt 2,019,479 2,012,092
Deferred Income Tax 13,927 - 0 -
Total Non Current Liabilities $2,033,406 $2,012,092
Minority Stockholders' Interest $ 215,396 $ 215,396
STOCKHOLDERS' EQUITY
Common Stock, par value $.025 a
share, authorized 8,000,000 shares $ 66,436 $ 66,344
Paid - In Capital 2,175,215 2,161,732
Retained Earnings 813,904 657,200
Less: Cost of Treasury Stock: 21,990 shares 45,825 45,825
TOTAL STOCKHOLDERS' EQUITY $3,009,730 $2,839,451
TOTAL LIABILITIES & STOCKHOLDERS'
EQUITY $7,597,519 $7,239,577
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FORM 10-QSB
TAYLOR DEVICES, INC.
CONSOLIDATED CONDENSED STATEMENT OF INCOME
THREE MONTHS ENDED AUGUST 31
1995 1994
NET SALES $2,473,781 $1,361,552
COST OF PRODUCT SOLD 1,619,811 910,877
Gross Profit $ 853,970 $ 450,675
EXPENSES
Selling and Administrative 623,070 382,189
Profit (loss) from Operations $ 230,900 $ 68,486
OTHER INCOME/(EXPENSE)
Rental - Affiliates 4,337 8,001
Miscellaneous 5,778 50,502
Interest (39,346) (26,261)
NET OTHER $ (29,231) $ 32,242
NET INCOME BEFORE
PROVISION FOR TAXES $ 201,669 $ 100,728
Provision for Income Taxes 49,940 10,587
INCOME BEFORE EQUITY IN EARNINGS
OF AFFILIATES 151,729 90,141
EQUITY IN EARNINGS OF AFFILIATES 4,975 3,910
NET INCOME BEFORE MINORITY
STOCKHOLDERS' INTEREST $ 156,704 $ 94,051
Minority Stockholders' Interest --- ---
NET INCOME $ 156,704 $ 94,051
Earnings Per Share $ .06 $ .04
<PAGE>
FORM 10-QSB
TAYLOR DEVICES, INC.
STATEMENT OF CHANGES IN FINANCIAL POSITION
THREE MONTHS ENDED AUGUST 31
1995 1994
FUNDS PROVIDED
From Operations $ 156,704 $ 94,051
Depreciation and Amort. 46,724 37,500
Fixed Assets - 0 - - 0 -
Sales of Stock 13,575 8,286
Minority Shareholders' Interest - 0 - 4,822
Decrease Other Assets - 0 - - 0 -
Increase Other Liabilities 171,048 77,123
Increase Long Term Debt 16,615 - 0 -
Total Funds Provided $ 404,666 $ 221,782
FUNDS APPLIED
Loss on Operations $ - 0 - $ - 0 -
Fixed Assets 480,166 235,051
Decrease Other Liabilities - 0 - 44,085
Increase Other Assets 42,031 35,573
Minority Shareholders' Interest - 0 - - 0 -
Investments - Affiliates 4,975 4,480
Decrease Long Term Debt - 0 - 59,473
Total Funds Applied $ 527,172 $ 378,662
INCREASE (DECREASE) IN CASH $(122,506) $(156,880)
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FORM 10-QSB
TAYLOR DEVICES, INC.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENT
1. In opinion of the company, the accompanying unaudited
consolidated condensed financial statements contain all
adjustments necessary to present fairly the financial
position as of August 31, 1995 and May 31, 1995 and the
results of operations for the three months ended August 31,
1995 and August 31, 1994 and changes in financial position
for the three months then ended.
2. There is no provision nor shall there be any provisions for
profit sharing, dividends, or any other benefits of any
nature at any time for this fiscal year.
3. For the three month period ended August 31, 1995, the profit
was divided by 2,657,427 to calculate the earnings per
share. For the three month period ended August 31, 1994,
the profit was divided by 2,628,136 to calculate the
earnings per share.
4. The results of operations for the three month period ended
August 31, 1995 are not necessarily indicative of the
results to be expected for the full year.
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FORM 10-QSB
TAYLOR DEVICES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following is Management's discussion and analysis of
certain significant factors which have affected the Company's
earnings during the periods included in the accompanying
consolidated condensed statements of income.
A summary of the period to period changes in the principal
items included in the consolidated statements of income is shown
below:
Comparisons of three months ended
August 31, 1995 - August 31, 1994
Increase (decrease)
Net Sales $1,112,229
Cost of Sales 708,934
Selling, General and Administrative Expenses 240,881
Other Expenses - 0 -
Other Income (48,388)
Interest Expense 13,085
Net Profit Before Tax
and Minority Shareholders' Interest 100,941
Provision for Income Tax 39,353
Net Profit Before Equity in
Earnings of Affiliates 61,588
Equity in Earnings of Affiliates 1,065
Minority Stockholders' Interest - 0 -
Net Income $ 62,653
<PAGE>
FORM 10-QSB
TAYLOR DEVICES, INC.
MANAGEMENT'S DISCUSSION (CON'T)
Taylor Devices' ("the Company") financial results for the
first quarter of Fiscal Year 1996 (QI96) showed significant
improvement over results for the same period of FY 95 (QI95).
QI96 net sales increased to $2,473,781 - an increase of
$1,112,229 and 82% compared to QI95. This improvement is largely
attributable to increased seismic and defense shipments in FY 96.
The Company earned a gross margin of $853,970 (34.5% of net
sales) on QI96 shipments compared to $450,675 (33.1%) for QI95.
Management believes the improvement in gross margin percent
performance is attributable to both product mix and improving
productivity from the new facilities and machinery funded by the
Industrial Development Agency Bonds referenced in previous
filings. QI96's Selling, General and Administrative (SGA)
expenses increased to $623,070 (25.2%) from QI95's figure of
$382,189 (28.1%). Most of the increased costs were derived from
the higher commission expenses related to seismic shipments.
Additional incremental SGA expense was incurred by start-up costs
for the Company's new MIS system and by expenses associated with
office and building renovations undertaken concurrently with the
IDA funded manufacturing facility improvements. The MIS upgrade
and office renovations have positioned the SGA department to
function efficiently at the higher sales volumes levels
anticipated in the near future. The improved sales volume and
manufacturing efficiency in QI96 resulted in an Operating Income
figure of $230,900 (9.3%) compared to QI95's Operating Income of
$68,486 (5.0%).
Miscellaneous income was $5,778 in QI96, down significantly
from the $50,502 recorded in QI95. QI95's miscellaneous income
was generated primarily by interest income from tax returns which
were received, in full, in FY 95. FY 96's interest expense
increased to $39,346 from $26,261 in QI95. Although higher
interest rates had some impact, the increase was primarily due to
interest expense on the IDA loans. The net result of the
reduction in miscellaneous income and the increase in interest
expense was approximately $61,000 - from a Net Other Income of
$32,000 in QI95 to a Net Other Expense of $29,000 in QI96.
Net Income Before Taxes essentially doubled between the two
fiscal quarters being compared. QI96's figure was $201,669
(8.2%) while QI95's figure was $100,728 (7.4%). QI96's Net
Income After Taxes and Equity in Earnings of Affiliate was
$156,704, representing 6.3% of sales and earnings per share of
$.06. For QI95, these figures were $94,051, 6.9% of net sales
and earnings per share of $.04.
The financial position of the Company continues to be
strong. The backlog of firm orders at August 31, 1995 stood at
$8,140,000 and management believes that the Company is in a good
position to be awarded contracts on several sizeable projects now
nearing the vendor selection stage. The Company's cash position
remains strong, as indicated by the current ratio of 1.93. The
Company's cash flow will continue to benefit from a low effective
income tax rate throughout FY 96 as the impact of FY 95's write-
off of obsolete inventory will take effect.
<PAGE>
The new Test Facility is almost complete and the first
testing of production units should begin in October, 1995. An
expansion of the engineering department's facility will begin
shortly and should be completed in QIII of FY 96. This
expansion, along with the acquisition of some additional
production equipment, will close-out the current phase out of the
Company's facilities upgrade. Upon completion of these final
steps, Management believes the Company's current facilities will
be able to function efficiently at an annual sales level of $12-
15 million.
At this time, Management believes that FY 96's financial
results will continue to be positive, approaching and perhaps
exceeding those of FY 95.
<PAGE>
FORM 10-QSB
TAYLOR DEVICES, INC.
PART II - OTHER INFORMATION
ITEM 1 Legal Proceedings
The Company is not currently engaged in any litigation.
ITEM 2 Changes in Securities - None
ITEM 3 Defaults Upon Senior Securities - None
ITEM 4 Submission of Matters to Vote of Securities Holders
ITEM 5 Other Information - None
ITEM 6 Exhibits and Reports of Form 8-K - None
<PAGE>
FORM 10-QSB
TAYLOR DEVICES, INC.
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.
TAYLOR DEVICES, INC.
(Registrant)
By: /S/Douglas P. Taylor Date: 10/6/95
______________________________ _______
Douglas P. Taylor
Chairman of the Board of Directors
President
(Principal Executive Officer)
AND
By: /S/Kenneth G. Bernstein Date: 10/6/95
________________________________ _______
Kenneth G. Bernstein
Treasurer &
Chief Accounting Officer
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