SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-QSB
Quarterly Report Pursuant to Section 13 or 15 (d) of
the Securities Exchange Act of 1934
For the quarterly period ending Commission File
June 25, 1995 Number 0-3063
TINSLEY LABORATORIES, INC.
____________________________________________________________
(Exact name of registrant as specified in its charter)
California 94-1049146
State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization
3900 Lakeside Drive, Richmond, California 94806
_______________________________________________________________
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code (510)222-8110
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 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 __
767,124 shares of Common Stock outstanding as of June 25, 1995.
<PAGE>
Part 1. Financial Information
Item 1.
<TABLE>
TINSLEY LABORATORIES, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
<CAPTION>
Jun 25, Dec 26,
1995 1994
---------- ----------
<S> <C> <C>
ASSETS
Current Assets:
Cash and short-term investments $577,674 $893,241
Accounts receivable 2,481,477 2,684,667
Inventories 1,628,615 1,516,527
Prepaid expenses & other 261,739 272,253
---------- ----------
Total current assets 4,949,505 5,366,688
Net property, plant & equipment 4,860,627 4,895,000
Other assets 919,389 940,887
Net goodwill 1,578,049 1,639,135
---------- ----------
$12,307,570 $12,841,710
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Trade account payable $479,757 $583,419
Current income taxes 141,644 226,982
Other accrued liabilities 1,242,145 1,238,479
--------- ---------
Total current liabilities 1,863,546 2,048,880
Long-term debt 981,890 1,047,938
Long-term notes payable
to related parties 460,000 860,000
Deferred income taxes 440,947 440,947
Deferred compensation 303,852 295,602
Stockholders' Equity:
Common stock at stated value 127,857 127,004
Capital in excess of stated value 1,343,877 1,316,680
Retained earnings 6,785,601 6,704,659
--------- ---------
Total stockholders' equity 8,257,335 8,148,343
--------- ---------
$12,307,570 $12,841,710
========== ==========
</TABLE>
<PAGE>
<TABLE>
TINSLEY LABORATORIES, INC.
Condensed Consolidated Statements of Income
(Unaudited)
<CAPTION>
Three months ended Six months ended
------------------ ----------------
Jun 25, Jun 26, Jun 25, Jun 26,
1995 1994 1995 1994
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net sales $2,936,137 $3,136,425 $6,281,427 $6,809,091
Cost of sales & expenses 2,795,445 2,887,039 5,885,292 6,333,389
--------- --------- --------- ---------
Income from operations 140,692 249,386 396,135 475,702
Amortization of goodwill
& intangibles 55,543 55,543 111,086 111,086
Other (income) expense (1,376) 24,546 109,608 164,572
--------- --------- --------- ---------
Income before taxes 86,525 169,297 175,441 200,044
Provision for taxes on income 47,000 80,048 94,500 104,026
--------- --------- --------- ---------
Net income $39,525 $89,249 $80,941 $96,018
Per share of common stock:
Net income $0.05 $0.12 $0.11 $0.13
</TABLE>
Notes:
Per share data are based on 767,124 shares issued and outstanding in 1995
and 762,024 shares in 1994.
<PAGE>
TINSLEY LABORATORIES, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
For the six months ended
--------------------------
Jun 25, Jun 26,
1995 1994
--------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $80,941 $96,018
Adjustments to reconcile net
income to net cash provided
(used) by operating activities:
Depreciation & amortization 436,557 421,705
Change in operating assets and
liabilities ( 71,047) (161,218)
---------- ----------
Net cash provided by operating
activities 446,451 356,505
Cash flows from investing activities:
Purchase of fixed assets (291,098) (236,988)
Other (28,500)
---------- ----------
Net cash used in investing
activities (319,598) (236,988)
Cash flows from financing activities:
Principal payments on long-term debt (470,470) (507,586)
Other 28,050 2,374
---------- ----------
Net cash provided by (used in)
financing activities (442,420) (505,212)
---------- ----------
Net change in cash and cash
equivalents (315,567) (385,695)
Cash and cash equivalents at
beginning of period 893,241 1,182,654
---------- ----------
Cash and cash equivalents at
end of period $577,674 $ 796,959
--------------------------------------------------------------------
Supplemental disclosure of cash
flow information:
Cash paid for:
Interest $110,147 $137,045
Income taxes $180,000 $112,028
--------------------------------------------------------------------
</TABLE>
<PAGE>
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 25, 1995
Note: 1. Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles
for interim financial information and with the instructions to Form 10-QSB
and article 10 of Regulation S-X. Accordingly, they do not include all of
the information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of management,
all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included. Operating results for
the six month period ended June 25, 1995 are not necessarily indicative
of the results that may be expected for any future periods. For further
information, refer to the consolidated financial statements and footnotes
thereto included in the Company's annual report on Form 10-KSB for the year
ended December 25, 1994.
The consolidated financial statements include the accounts of Tinsley
Laboratories, Inc., and its wholly owned subsidiaries, Century Precision
Industries, Inc. d/b/a Century Precision Optics ("Century") and Tinsley
International, Inc., after elimination of intercompany transactions and
balances.
Note: 2. Inventories
The components of inventory consist of the following:
<TABLE>
<CAPTION>
June 25, December 25,
1995 1994
---------- ----------
<S> <C> <C>
Raw materials $259,844 $241,244
Contracts in progress (net of
cost of progress billings of
$204,000 at June 25, 1995 and
$136,000 at December 25, 1994) 598,247 594,759
Finished goods 770,524 680,524
---------- ---------
$1,628,615 $1,516,527
========== =========
</TABLE>
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF QUARTERLY FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Item 2.
Sales for the first six months of $6,281,427 declined eight percent from
sales for the same period last year of $6,809,091. Net income for the first
half was $80,941 or 11 cents a share, a decrease of 16 percent from the
$96,018 or 13 cents a share earned a year ago.
Sales for the second quarter amounted to $3,345,290 and were down nine
percent from sales of $3,672,666 we reported for the June quarter of 1994.
Our second quarter net income of $41,416 or five cents a share, showed an
increase from earnings of $6,769 or one cent a share earned during the
June quarter of 1994.
Our lower sales and earnings continue to be primarily due to reduced military
business and to the high initial start-up costs associated with certain new
programs. Tinsley's backlog strengthened late in the first half, rising to
$6,907,000 at the end of June, which is up from our backlog at the end of
the June quarter a year ago of $4,086,000 and backlog at the start of the
current year of $4,000,000.
Liquidity and Sources of Capital:
Cash flows from operations were $446,451 for the six months ended June
25, 1995 as compared to $356,505 in the first six months of 1994. The
funds provided by net income plus depreciation and amortization for the
period, was partially offset by changes in working capital accounts.
Accounts receivable balances decreased by $203,190 from the 1994 year
end level while inventories increased by $112,087 and accounts payable
reduced by $148,637. Available cash was sufficient to pay for capital
expenditures of $291,098 and principal payments on debt of $470,470
during the six month period. The Company believes that funds generated
from operations should be sufficient to meet normal cash flow
requirements through the balance of 1995. The Company has a $1 million
line of credit to draw upon for its short term needs.
<PAGE>
Part II Other Information
Item 4. Submission of Matters to a Vote of Security Holders
Reference is made to materials appearing with respect to election of the
Board of Directors, set forth in the Company's definitive Proxy Statment
filed in connection with the Company's 1995 Annual Meeting of
Shareholders, held on April 26, 1995 which material is incorporated
herein.
Item 6. Exhibits and Reports on Form 8-K
(b) No reports on Form 8-K were filed during the current period.
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.
TINSLEY LABORATORIES, INC.
Robert J. Aronno
President and Chief Executive Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-25-1995
<CASH> 577,674
<SECURITIES> 0
<RECEIVABLES> 2,481,477
<ALLOWANCES> 0
<INVENTORY> 1,628,615
<CURRENT-ASSETS> 4,949,505
<PP&E> 12,860,539
<DEPRECIATION> (7,999,912)
<TOTAL-ASSETS> 12,307,570
<CURRENT-LIABILITIES> 1,863,546
<BONDS> 0
<COMMON> 127,857
0
0
<OTHER-SE> 8,129,478
<TOTAL-LIABILITY-AND-EQUITY> 12,307,570
<SALES> 6,281,427
<TOTAL-REVENUES> 6,281,427
<CGS> 5,885,292
<TOTAL-COSTS> 5,885,292
<OTHER-EXPENSES> 132,484
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 88,210
<INCOME-PRETAX> 175,441
<INCOME-TAX> 94,500
<INCOME-CONTINUING> 80,941
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 80,941
<EPS-PRIMARY> .11
<EPS-DILUTED> .11
</TABLE>
