SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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 Quarter Ended April 1, 1995.
[ ]Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934.
Commission File Number 1-8002
THERMO ELECTRON CORPORATION
(Exact name of Registrant as specified in its charter)
Delaware 04-2209186
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
81 Wyman Street, P.O. Box 9046
Waltham, Massachusetts 02254-9046
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (617)622-1000
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 the number of shares outstanding of each of the
issuer's classes of Common Stock, as of the latest practicable
date.
Class Outstanding at April 28, 1995
----------------------------- -----------------------------
Common Stock, $1.00 par value 55,263,148
PAGE
<PAGE>
FORM 10-Q
April 1, 1995
THERMO ELECTRON CORPORATION
PART I - Financial Information
Item 1 - Financial Statements
(a)Consolidated Balance Sheet - Assets as of April 1, 1995 and
December 31, 1994 (In thousands)
April 1, December 31,
1995 1994
---------- ------------
Current Assets:
Cash and cash equivalents $ 406,346 $ 383,005
Short-term available-for-sale
investments, at quoted market value
(amortized cost of $498,509 and $617,837) 500,756 614,915
Accounts receivable, less allowances
of $24,096 and $21,664 378,620 353,436
Unbilled contract costs and fees 73,380 53,914
Inventories:
Raw materials and supplies 140,417 128,876
Work in process 50,194 44,711
Finished goods 65,674 59,795
Prepaid income taxes 53,606 57,824
Prepaid expenses 20,988 15,148
---------- ----------
1,689,981 1,711,624
---------- ----------
Property, Plant and Equipment, at Cost 839,632 811,325
Less: Accumulated depreciation and
amortization 195,837 186,437
---------- ----------
643,795 624,888
---------- ----------
Long-term Available-for-sale
Investments, at Market Value
(amortized cost of $82,630 and $65,218) 81,756 62,451
---------- ----------
Long-term Held-to-maturity Investments
(quoted market value of $22,810) 22,569 -
---------- ----------
Other Assets 85,393 85,338
---------- ----------
Cost in Excess of Net Assets of
Acquired Companies 621,096 577,634
---------- ----------
$3,144,590 $3,061,935
========== ==========
The accompanying notes are an integral part of these consolidated
financial statements.
2PAGE
<PAGE>
FORM 10-Q
April 1, 1995
THERMO ELECTRON CORPORATION
(a)Consolidated Balance Sheet - Liabilities and Shareholders'
Investment as of April 1, 1995 and December 31, 1994 (In thousands
except share amounts)
April 1, December 31,
1995 1994
---------- ------------
Current Liabilities:
Notes payable and current maturities of
long-term obligations $ 88,015 $ 85,697
Accounts payable 120,655 125,074
Accrued payroll and employee benefits 79,473 79,849
Accrued income taxes 32,143 35,845
Accrued installation and warranty costs 35,772 33,442
Other accrued expenses 213,532 200,985
---------- ----------
569,590 560,892
---------- ----------
Deferred Income Taxes and Other Items 118,292 115,973
---------- ----------
Long-term Obligations:
Senior convertible obligations 586,233 620,000
Subordinated convertible obligations 177,124 186,661
Tax-exempt obligations 131,000 130,985
Nonrecourse tax-exempt obligations 95,300 95,300
Other 41,322 16,904
---------- ----------
1,030,979 1,049,850
---------- ----------
Minority Interest 340,084 327,734
---------- ----------
Common Stock of Subsidiary Subject to
Redemption ($18,450 redemption value) 17,288 -
---------- ----------
Shareholders' Investment:
Common stock, $1 par value, 175,000,000
shares authorized; 54,814,197 and
53,558,248 shares issued 54,814 53,558
Capital in excess of par value 514,096 493,058
Retained earnings 501,944 472,396
Treasury stock at cost, 136,417 and
38,318 shares (6,439) (1,631)
Cumulative translation adjustment 5,408 (3,557)
Deferred compensation (2,354) (2,657)
Net unrealized gain (loss) on available-
for-sale investments 888 (3,681)
---------- ----------
1,068,357 1,007,486
---------- ----------
$3,144,590 $3,061,935
========== ==========
The accompanying notes are an integral part of these consolidated
financial statements.
3PAGE
<PAGE>
FORM 10-Q
April 1, 1995
THERMO ELECTRON CORPORATION
(b)Consolidated Statement of Income for the three months ended April
1, 1995 and April 2, 1994 (In thousands except per share amounts)
Three Months Ended
-------------------
April 1, April 2,
1995 1994
-------- ---------
Revenues:
Product revenues $388,025 $311,208
Service revenues 43,908 32,386
Research and development contract revenues 46,612 40,130
-------- --------
478,545 383,724
-------- --------
Costs and Expenses:
Cost of products 230,903 184,676
Cost of services 27,544 23,388
Expenses for research and development and
new lines of business (a) 63,143 53,658
Selling, general and administrative expenses 109,583 83,788
Costs associated with divisional and product
restructuring 1,522 -
-------- --------
432,695 345,510
-------- --------
Operating Income 45,850 38,214
Gain on Issuance of Stock by Subsidiaries
(Note 2) 12,883 8,494
Other Expense, Net (Note 3) (3,347) (3,700)
-------- --------
Income Before Income Taxes and Minority Interest 55,386 43,008
Provision for Income Taxes 18,434 14,535
Minority Interest Expense 7,404 5,548
-------- --------
Net Income $ 29,548 $ 22,925
======== ========
Earnings per Share:
Primary $ .55 $ .45
======== ========
Fully diluted $ .49 $ .41
======== ========
Weighted Average Shares:
Primary 53,721 50,492
======== ========
Fully diluted 69,624 61,853
======== ========
(a) Includes costs of:
Research and development contracts $ 40,803 $ 35,640
Internally funded research and development 21,532 17,015
Other expenses for new lines of business 808 1,003
-------- --------
$ 63,143 $ 53,658
======== ========
The accompanying notes are an integral part of these consolidated
financial statements.
4PAGE
<PAGE>
FORM 10-Q
April 1, 1995
THERMO ELECTRON CORPORATION
(c)Condensed Consolidated Statement of Cash Flows for the three months
ended April 1, 1995 and April 2, 1994 (In thousands)
Three Months Ended
--------------------
April 1, April 2,
1995 1994
--------- ---------
Operating Activities:
Net cash provided by operating activities $ 2,398 $ 18,058
--------- ---------
Investing Activities:
Acquisitions, net of cash acquired (49,467) (133,508)
Purchases of available-for-sale investments (104,765) (132,464)
Purchases of held-to-maturity investments (22,300) -
Proceeds from sale and maturities of
available-for-sale investments 207,146 148,539
Purchases of property, plant and equipment (12,724) (13,272)
Proceeds from sale of property, plant and
equipment 1,225 1,269
Decrease in net restricted funds - 23,420
Other (1,539) (7,106)
--------- ---------
Net cash provided by (used in) investing
activities 17,576 (113,122)
--------- ---------
Financing Activities:
Net proceeds from issuance of long-term
obligations 313 32,138
Repayment and repurchase of long-term
obligations (6,654) (10,332)
Proceeds from issuance of Company and
subsidiary common stock 51,272 24,181
Purchases of subsidiary common stock (44,257) (19,068)
Other 730 (469)
--------- ---------
Net cash provided by financing activities 1,404 26,450
--------- ---------
Exchange Rate Effect on Cash 1,963 520
--------- ---------
Increase (Decrease) in Cash and Cash Equivalents 23,341 (68,094)
Cash and Cash Equivalents at Beginning of Period 383,005 325,989
--------- ---------
Cash and Cash Equivalents at End of Period $ 406,346 $ 257,895
========= =========
5PAGE
<PAGE>
FORM 10-Q
April 1, 1995
THERMO ELECTRON CORPORATION
(c)Condensed Consolidated Statement of Cash Flows for the three months
ended April 1, 1995 and April 2, 1994 (In thousands) (continued)
Three Months Ended
--------------------
April 1, April 2,
1995 1994
--------- ---------
Supplemental Cash Flow Information:
Provision for losses on accounts receivable $ 1,641 $ 1,027
Cash paid for:
Interest $ 22,250 $ 15,926
Income taxes $ 11,108 $ 7,724
Noncash activities:
Conversions of convertible obligations $ 41,115 $ 11,855
Issuance of long-term debt in connection
with acquisition $ 22,300 $ -
The accompanying notes are an integral part of these consolidated
financial statements.
6PAGE
<PAGE>
FORM 10-Q
April 1, 1995
THERMO ELECTRON CORPORATION
(d) Notes to Consolidated Financial Statements - April 1, 1995
1. General
The interim consolidated financial statements presented have been
prepared by Thermo Electron Corporation (the Company) without audit
and, in the opinion of management, reflect all adjustments of a normal
recurring nature necessary for a fair statement of (a) the results of
operations for the three-month periods ended April 1, 1995 and
April 2, 1994, (b) the financial position at April 1, 1995, and (c) the
cash flows for the three-month periods ended April 1, 1995 and
April 2, 1994. Interim results are not necessarily indicative of
results for a full year.
The consolidated balance sheet presented as of December 31, 1994,
has been derived from the consolidated financial statements that have
been audited by the Company's independent public accountants. The
consolidated financial statements and notes are presented as permitted
by Form 10-Q and do not contain certain information included in the
annual financial statements and notes of the Company. The consolidated
financial statements and notes included herein should be read in
conjunction with the financial statements and notes included in the
Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 1994, filed with the Securities and Exchange Commission.
2. Transactions in Stock of Subsidiaries
"Gain on issuance of stock by subsidiaries" in the accompanying
statement of income for the three-month period ended April 1, 1995,
resulted primarily from the following:
An initial public offering of 2,333,556 shares of Thermo
Ecotek Corporation common stock in February 1995 at $12.75
per share for net proceeds of $27.5 million resulted in a
gain of $7.9 million.
A private placement of 700,000 shares of Thermo
BioAnalysis Corporation common stock in March 1995 at
$10.00 per share for net proceeds of $6.5 million resulted
in a gain of $4.7 million that was recorded by the
Company's Thermo Instrument Systems Inc. subsidiary.
7PAGE
<PAGE>
FORM 10-Q
April 1, 1995
THERMO ELECTRON CORPORATION
(d) Notes to Consolidated Financial Statements - April 1, 1995
(continued)
3. Other Expense, Net
The components of "Other expense, net" in the accompanying statement
of income are:
Three Months Ended
------------------
April 1, April 2,
(In thousands) 1995 1994
-------------------------------------------------------------------
Interest income $ 14,514 $ 7,199
Interest expense (18,391) (10,347)
Equity in income (loss) of
unconsolidated subsidiaries 5 (1,207)
Gain on sale of investments 1,187 611
Other income (expense), net (662) 44
-------- --------
$ (3,347) $ (3,700)
======== ========
4. Acquisition
On March 15, 1995, the Company acquired Coleman Research Corporation
in exchange for 2,668,149 shares of Company common stock, including
135,241 shares reserved for issuance upon exercise of stock options.
Coleman Research provides systems integration, systems engineering, and
analytical services to government customers in the fields of
information technology, energy and the environment, software
engineering, launch systems, advanced radar and imaging, and healthcare
systems. The acquisition has been accounted for under the
pooling-of-interests method. Accordingly, all historical financial
information presented has been restated to include the acquisition of
Coleman Research. Revenues and net income for the three-month period
ended April 2, 1994, as previously reported by the separate entities
prior to the acquisition and as restated for the combined Company, are
as follows:
Three Months Ended
------------------
(In thousands) April 2, 1994
-------------------------------------------------------------------
Revenues:
Previously reported $350,476
Coleman Research 33,248
--------
$383,724
========
Net Income:
Previously reported $ 22,541
Coleman Research 384
--------
$ 22,925
========
8PAGE
<PAGE>
FORM 10-Q
April 1, 1995
THERMO ELECTRON CORPORATION
(d) Notes to Consolidated Financial Statements - April 1, 1995
(continued)
5. Subsequent Event
In March 1995, the Company declared a three-for-two stock split in
the form of a 50% stock dividend, which is payable on May 24, 1995, to
shareholders of record as of April 26, 1995. Common shares outstanding
as of April 1, 1995, on a pro forma basis to reflect the stock split
would have been 82,016,670 shares. The following table presents other
selected financial data on a pro forma basis to reflect the stock
split.
Three Months Ended
--------------------
April 1, April 2,
(In thousands except per share amounts) 1995 1994
----------------------------------------------------------------------
Earnings Per Share:
Primary $ .37 $ .30
Fully diluted $ .32 $ .27
Weighted Average Shares:
Primary 80,582 75,737
Fully diluted 104,436 92,780
Financial results for the three months ended April 1, 1995 and prior
periods will be restated in the second quarter of 1995 to reflect the
stock split.
Item 2 - Management's Discussion and Analysis of Financial Condition
and Results of Operations
Results of Operations
First Quarter 1995 Compared With First Quarter 1994
Sales for the first quarter of 1995 were a record $478.5 million, an
increase of $94.8 million, or 25%, over the first quarter of 1994.
Segment income was $52.7 million, compared with $42.8 million in 1994,
an increase of 23%. (Segment income is income before corporate general
and administrative expenses, costs associated with divisional and
product restructuring, other income and expense, minority interest
expense, and income taxes.) Operating income was $45.9 million,
compared with $38.2 million in 1994, an increase of 20%. Financial
results for 1994 have been restated to include Coleman Research
Corporation, which was acquired in a pooling-of-interests transaction
in March 1995 (see Note 4 to Consolidated Financial Statements).
9PAGE
<PAGE>
FORM 10-Q
April 1, 1995
THERMO ELECTRON CORPORATION
Item 2 - Management's Discussion and Analysis of Financial Condition
and Results of Operations (continued)
First Quarter 1995 Compared With First Quarter 1994 (continued)
Sales from the Instruments segment were $172.9 million in 1995, an
increase of $25.3 million, or 17%, over 1994. Sales increased due to
acquisitions made by Thermo Instrument Systems Inc. during 1995 and
1994, including several businesses within the EnviroTech Measurements &
Controls group of Baker Hughes Incorporated in March 1994, and the
Analytical Instruments Division of Baird Corporation in January 1995,
offset by reduced revenues from Thermo Instrument's air monitoring
instruments subsidiary, as most orders in response to Phase I and II of
the Clean Air Act of 1990 have been completed. Segment income margin
(segment income margin is segment income as a percentage of sales) was
14.4% in 1995, compared with 17.9% in 1994. Segment income margin
declined principally due to lower margins at acquired businesses and,
to a lesser extent, reduced shipments at the air monitoring instruments
subsidiary discussed above, and higher expenses for research and
development, which were 7.2% of the Instruments segment sales in 1995,
compared with 6.2% in 1994.
Sales from the Alternative-energy Systems segment were $74.2 million
in 1995, an increase of $12.2 million, or 20%, over 1994. Within this
segment, revenues from Thermo Ecotek Corporation, which consist of
revenues from alternative-energy power plant operations, were $31.0
million in 1995, compared with $29.2 million in 1994. The increase is
primarily due to the Whitefield, New Hampshire plant operating for the
full quarter in 1995. During 1994, the Whitefield plant did not operate
for most of the quarter due to major damage to the turbine-generator.
The plant returned to normal operations in the second quarter of 1994.
Higher contractual energy rates in 1995 were largely offset by
utility-imposed curtailments of power output at two California plants.
Sales from the Company's wholly owned Energy Systems division increased
$3.7 million as a result of a waste-recycling facility in San Diego
County (the County) that commenced operations in the first quarter of
1994. The County has announced its desire to purchase the facility and
terminate the service agreement under which the Company derives
revenues from the operation of the facility. Termination of the service
agreement would require the County to pay the Company a termination fee
and reimburse the Company for certain other expenses incurred in
connection with the facility. The Company is currently negotiating the
terms of this termination, however, no assurance can be given that the
Company will reach an agreement with the County. Sales from Thermo
Power Corporation increased 13%, to $24.9 million, as a result of the
inclusion of $1.9 million in sales from its NuTemp, Inc. subsidiary,
which was acquired in May 1994, and increased demand for marine engine
products, offset in part by a decline in revenues from custom-
engineered refrigeration packages at its FES division. Sales of Peter
Brotherhood Ltd. steam turbines and compressors increased $3.7 million
in 1995 due to increased demand.
10PAGE
<PAGE>
FORM 10-Q
April 1, 1995
THERMO ELECTRON CORPORATION
Item 2 - Management's Discussion and Analysis of Financial Condition
and Results of Operations (continued)
First Quarter 1995 Compared With First Quarter 1994 (continued)
Segment income from the Alternative-energy Systems segment was $6.1
million in 1995, compared with $3.5 million in 1994. Thermo Ecotek had
segment income of $3.4 million, compared with $3.0 million in 1994.
This improvement results from lower maintenance expense at the
Company's New England facilities and higher contractual energy rates,
offset in part by utility-imposed curtailments of power output at two
California plants and increased spending on new business development
efforts. Segment income from the Company's Energy Systems division
increased $1.3 million in 1995 as a result of the waste-recycling
facility that commenced operations in the first quarter of 1994.
Segment income increased at Thermo Power as a result of higher-margin
sales at NuTemp and, to a lesser extent, higher margins at FES due to
changes in product mix and lower warranty expenses in 1995, compared
with 1994. Segment income at Peter Brotherhood improved to a slight
profit, compared with a slight loss in 1994, as a result of increased
sales.
Sales in the Process Equipment segment were $57.4 million in 1995,
compared with $43.0 million in 1994. Within this segment, sales from
Thermo Fibertek Inc. rose to $43.7 million from $35.2 million in 1994.
Sales from the Company's paper-recycling equipment business increased
$5.0 million primarily as a result of one contract that was completed
in the first quarter of 1995. In addition, sales from the Company's
North American cleaning, formation, and filtration systems business
rose $2.4 million due to increased demand. In December 1994, a wholly
owned subsidiary of the Company entered into a $145 million contract
for engineering, procurement, and construction services for an office
wastepaper de-inking facility to be located in Menominee, Michigan.
Construction is expected to take place over approximately two years.
Thermo Fibertek will supply more than $15 million of equipment and
services for this project over the next two years. In the first quarter
of 1995, Fibertek recorded sales of $0.5 million and a wholly owned
subsidiary of the Company recorded additional sales of $4.5 million
under this contract. Sales of Holcroft heat-treating systems remained
depressed at $3.8 million, compared with $4.1 million in 1994. Sales of
automated electroplating equipment from the Company's wholly owned
Napco, Inc. subsidiary were $5.5 million, compared with a depressed
level of $3.7 million in 1994. Segment income margin was 10.8%,
compared with 9.6% in 1994. This improvement results primarily from the
increased sales.
Sales in the Biomedical Products segment were $54.2 million in 1995,
up $13.2 million, or 32%, over 1994, due primarily to increased demand
for a number of the Company's biomedical products. ThermoTrex
Corporation's mammography and needle-biopsy systems increased 35% to
$16.1 million; Thermo Cardiosystems Inc.'s implantable left
ventricular-assist systems (LVAS) increased more than 100% to $4.4
11PAGE
<PAGE>
FORM 10-Q
April 1, 1995
THERMO ELECTRON CORPORATION
Item 2 - Management's Discussion and Analysis of Financial Condition
and Results of Operations (continued)
First Quarter 1995 Compared With First Quarter 1994 (continued)
million; skin-care products from CBI Laboratories, Inc., a subsidiary
of ThermoLase Corporation, increased 57% to $6.1 million; neuro-
diagnostic monitoring equipment sold by the Company's wholly owned
Nicolet Biomedical Inc. subsidiary increased 17% to $13.1 million; and
sales of blood coagulation-monitoring products and skin-incision
devices sold by the Company's wholly owned International Technidyne
Corporation subsidiary increased 17% to $7.8 million. Segment income
margin improved to 12.0% from 6.2% in 1994 as a result of increased
sales and, to a lesser extent, the first phase of a price increase for
Thermo Cardiosystems' air-driven LVAS.
Sales in the Environmental Services segment were $44.0 million in
1995, compared with $32.4 million in 1994. Within this segment, sales
from Thermo Remediation Inc. were $7.9 million in 1995, compared with
$7.8 million in 1994. The inclusion of sales of $1.2 million from
acquired businesses was offset by a decline in revenues from the
Company's west coast operations, due to abnormally heavy rainfall.
Sales of analytical laboratory and environmental consulting services
increased 75%, to $22.6 million, due to the inclusion of sales from
businesses acquired. Sales of metallurgical services increased 12%, to
$11.7 million, due to increased demand. Segment income margin declined
to 8.6% from 10.5% in 1994, due to higher legal expenses incurred
within the environmental consulting services operations.
Sales from the Advanced Technologies segment were $77.3 million in
1995, compared with $58.6 million in 1994. Sales increased primarily
due to the inclusion of revenues from acquired businesses and an
increase of $6.5 million in sales from Coleman Research Corporation due
to increased contract funding. These increases were offset in part by a
decline of $3.5 million in revenues from Thermedics Detection Inc. due
to a decrease in demand from its principal customer, which has
substantially implemented its initial deployment of Alexus systems.
Segment income margin improved to 6.8% from 4.8% in 1994, due to
improved margins at Ramsey Technology Inc. and Coleman Research,
primarily due to efforts to control costs.
The Company has adopted a strategy of spinning out certain of its
businesses into separate subsidiaries and having these subsidiaries
sell a minority interest to outside investors. The Company believes
that this strategy provides additional motivation and incentives for
the management of the subsidiaries through the establishment of
subsidiary-level stock option incentive programs, as well as capital to
support the subsidiaries' growth. As a result of the sale of stock by
subsidiaries and the issuance of stock by subsidiaries upon conversion
of convertible debentures, the Company recorded gains of $12.9 million
in 1995 and $8.5 million in 1994. Although the Company expects to
continue this strategy in the future, its goal is to continue
increasing segment income over the next few years so that gains
12PAGE
<PAGE>
FORM 10-Q
April 1, 1995
THERMO ELECTRON CORPORATION
Item 2 - Management's Discussion and Analysis of Financial Condition
and Results of Operations (continued)
First Quarter 1995 Compared With First Quarter 1994 (continued)
generated through the sale of stock by its subsidiaries will represent
a decreasing portion of net income. The size and timing of these
transactions are dependent on market and other conditions that are
beyond the Company's control. Accordingly, there can be no assurance
that the Company will be able to generate gains from such transactions
in the future.
In the first quarter of 1995, the Company recorded restructuring
charges, classified as "Costs associated with divisional and product
restructuring" in the accompanying statement of income, of $1.5
million, of which $1.2 million resulted from the decision to close its
metallurgical services division located in Albuquerque, New Mexico. The
costs primarily represent severance costs and the write-off of cost in
excess of net assets of acquired companies and leasehold improvements.
The facility is expected to be closed by the end of the second quarter
of 1995. The remaining $0.3 million represents an adjustment to a
previously established reserve.
Financial Condition
Liquidity and Capital Resources
Consolidated working capital was $1,120.4 million at April 1, 1995,
compared with $1,150.7 million at December 31, 1994. Included in
working capital were cash and available-for-sale investments of $907.1
million at April 1, 1995, compared with $997.9 million at December 31,
1994. In addition, at April 1, 1995, the Company had $81.8 million of
long-term available-for-sale investments and $22.6 million of long-term
held-to-maturity investments, compared with $62.5 million of long-term
available-for-sale investments at December 31, 1994.
On March 1, 1995, the Company's Thermo Instrument subsidiary entered
into an agreement to acquire the Scientific Instruments Division (the
Division) of Fisons plc for approximately 202 million British pounds
sterling, subject to a post-closing adjustment based on the net asset
value of the Division as of the closing date. Consummation of the
acquisition is subject to several conditions, including regulatory
approvals, consent of certain third parties, and customary conditions
to closing. The Company is currently responding to a second request for
information from the Federal Trade Commission (FTC), and no assurance
can be given that the Company will be able to provide information
sufficient to satisfactorily address any FTC concerns regarding the
potential effect of the transaction upon competition in the analytical
instruments market.
13PAGE
<PAGE>
FORM 10-Q
April 1, 1995
THERMO ELECTRON CORPORATION
Item 2 - Management's Discussion and Analysis of Financial Condition
and Results of Operations (continued)
Liquidity and Capital Resources (continued)
During the first three months of 1995, the Company expended $49.5
million for acquisitions and $12.7 million for purchases of property,
plant and equipment. The Company has no material commitments for
purchases of property, plant and equipment and expects that, for 1995,
such expenditures will approximate the 1994 level.
During the first three months of 1995, the Company and its
majority-owned subsidiaries expended $44.3 million to purchase common
stock of the Company's subsidiaries. The Company expects that these
purchases will continue although the amount of repurchases in a given
reporting period may vary significantly.
PART II - Other Information
Item 6 - Exhibits and Reports on Form 8-K
(a) Exhibits
See Exhibit Index on the page immediately preceding exhibits.
(b) Reports on Form 8-K
On March 6, 1995, the Company filed a Current Report on Form 8-K
pertaining to Thermo Instrument's pending acquisition of the Scientific
Instruments Division of Fisons plc.
14PAGE
<PAGE>
FORM 10-Q
April 1, 1995
THERMO ELECTRON CORPORATION
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 as of the 9th day of May
1995.
THERMO ELECTRON CORPORATION
Paul F. Kelleher
---------------------------
Paul F. Kelleher
Vice President, Finance
John N. Hatsopoulos
---------------------------
John N. Hatsopoulos
Chief Financial Officer
15PAGE
<PAGE>
FORM 10-Q
April 1, 1995
THERMO ELECTRON CORPORATION
EXHIBIT INDEX
Exhibit Number Document Page
-------------- -------- ----
11 Statement re: Computation of earnings per share.
27 Financial Data Schedule.
Exhibit 11
THERMO ELECTRON CORPORATION
Computation of Earnings per Share
Three Months Ended
----------------------------
April 1, April 2,
1995 1994
------------ ------------
Computation of Fully Diluted Earnings
per Share:
Income:
Net income $ 29,548,000 $ 22,925,000
Add: Convertible debenture interest,
net of tax 4,304,000 2,460,000
------------ ------------
Income applicable to common stock
assuming full dilution (a) $ 33,852,000 $ 25,385,000
------------ ------------
Shares:
Weighted average shares outstanding 53,721,243 50,491,502
Add: Shares issuable from assumed
conversion of convertible
debentures 15,209,676 10,970,407
Shares issuable from assumed
exercise of options (as determined
by the application of the treasury
stock method) 692,892 391,103
------------ ------------
Weighted average shares outstanding,
as adjusted (b) 69,623,811 61,853,012
------------ ------------
Fully Diluted Earnings per Share
(a) / (b) $ .49 $ .41
============ ============
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THERMO
ELECTRON CORPORATION'S QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER ENDED APRIL
1, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-30-1995
<PERIOD-END> APR-01-1995
<CASH> 406,346
<SECURITIES> 500,756
<RECEIVABLES> 378,620
<ALLOWANCES> 24,096
<INVENTORY> 256,285
<CURRENT-ASSETS> 1,689,981
<PP&E> 839,632
<DEPRECIATION> 195,837
<TOTAL-ASSETS> 3,144,590
<CURRENT-LIABILITIES> 569,590
<BONDS> 1,030,979
<COMMON> 54,814
0
0
<OTHER-SE> 1,013,543
<TOTAL-LIABILITY-AND-EQUITY> 3,144,590
<SALES> 388,025
<TOTAL-REVENUES> 478,545
<CGS> 230,903
<TOTAL-COSTS> 299,250<F1>
<OTHER-EXPENSES> 23,862<F2>
<LOSS-PROVISION> 1,641
<INTEREST-EXPENSE> 18,391
<INCOME-PRETAX> 55,386
<INCOME-TAX> 18,434
<INCOME-CONTINUING> 29,548
<DISCONTINUED> 0
<EXTRAORDINARY> 00
<CHANGES> 0
<NET-INCOME> 29,548
<EPS-PRIMARY> .55
<EPS-DILUTED> .49
<FN>
<F1>This line is made up of the following income statement accounts: "cost of
products", "cost of services" and "research and development contracts".
<F2>This line is made up of the following income statement accounts: "costs
associated with divisional and product restructuring", "internally funded
research and development" and "other expenses for new lines of business."
</FN>
</TABLE>
