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
March 31, 1996 Number 0-3063
TINSLEY LABORATORIES, INC.
____________________________________________________________
(Exact name of registrant as specified in its charter)
California 94-1049146
State or otherjurisdiction 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 __
771,974 shares of Common Stock outstanding as of March 31, 1996.
<PAGE>
Part 1. Financial Information
Item 1.
<TABLE>
TINSLEY LABORATORIES, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
<CAPTION>
Mar 31, Dec 31,
1996 1995
-------- -------
<S> <C> <C>
ASSETS
Current Assets:
Cash and short-term investments $312,499 $560,692
Accounts receivable 2,903,878 2,358,798
Inventories 2,088,322 1,864,988
Prepaid expenses & other 585,300 443,873
---------- ---------
Total current assets 5,889,999 5,228,351
Net property, plant & equipment 5,258,640 5,285,487
Other assets 899,389 909,389
Net goodwill 1,486,420 1,516,963
---------- ---------
$13,534,448 $12,940,190
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Trade account payable $652,299 $491,296
Current income taxes 393,908 362,008
Other accrued liabilities 1,944,364 1,727,688
--------- ---------
Total current liabilities 2,990,571 2,580,992
Long-term debt, less
current portion 867,394 900,928
Long-term notes payable
to related parties,
less current portion 460,000 460,000
Deferred income taxes 369,230 369,230
Deferred compensation 313,827 312,102
Stockholders' Equity:
Common stock at stated value 128,662 127,854
Capital in excess of
stated value 1,369,747 1,343,880
Retained earnings 7,162,857 6,973,044
Minimum pension liability (127,840) (127,840)
---------- ----------
Total stockholders' equity 8,533,426 8,316,938
---------- ----------
$13,534,448 $12,940,190
=========== ===========
</TABLE>
<PAGE>
<TABLE>
TINSLEY LABORATORIES, INC.
Condensed Consolidated Statements of Income
(Unaudited)
<CAPTION>
Three months ended
------------------
Mar 31 Mar 26
1996 1995
--------- ---------
<S> <C> <C>
Net sales $3,901,199 $2,936,137
Cost of goods sold 2,672,264 2,009,542
Selling, administrative and
research and development expenses 842,261 785,903
Amortization of intangible assets 55,543 55,543
---------- ----------
Income from operations 331,131 85,149
Other (income) expense (38,300) (42,880)
Interest expense 32,718 41,504
---------- ----------
Income before taxes 336,713 86,525
Provision for taxes on income 146,900 47,000
---------- ----------
Net income $189,813 $39,525
========== ==========
Per share of common stock:
Net income $0.25 $0.05
========== ==========
</TABLE>
Notes:
Per share data are based on 771,974 shares issued and
outstanding in 1996 and 767,124 shares in 1995.
<PAGE>
TINSLEY LABORATORIES, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
For the three months ended
--------------------------
Mar 31, Mar 26,
1996 1995
--------- --------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $189,813 $39,525
Adjustments to reconcile net
income to net cash provided
(used) by operating activities:
Depreciation & amortization 238,697 216,959
Change in operating assets and
liabilities (497,535) (138,848)
--------- ---------
Net cash provided by operating
activities (69,025) 117,636
Cash flows from investing activities:
Purchase of fixed assets (156,307) (110,594)
Other (15,000) (16,000)
--------- ---------
Net cash used in investing
activities (171,307) (126,594)
Cash flows from financing activities:
Principal payments on long-term debt (34,536) (33,125)
Other 26,675 28,050
--------- ---------
Net cash provided by (used in)
financing activities (7,861) (5,075)
--------- ---------
Net change in cash and cash
equivalents (248,193) (14,033)
Cash and cash equivalents at
beginning of period 560,692 893,241
--------- ---------
Cash and cash equivalents at
end of period $312,499 $879,208
========= =========
Supplemental disclosure of cash
flow information:
Cash paid for:
Interest $25,719 $30,382
Income taxes $115,000 $14,577
</TABLE>
<PAGE>
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 1996
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 three month period
ended March 31, 1996 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 31,
1995.
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>
March 31, December 31,
1996 1995
--------- ---------
<S> <C> <C>
Raw materials $220,843 $230,271
Contracts in progress (net of cost of
progress billings of $556,000 at
March 31, 1996 and
$431,000 at December 31, 1995) 1,246,566 874,604
Finished goods 620,913 760,113
---------- ---------
$2,088,322 $1,864,988
========== ===========
</TABLE>
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF QUARTERLY FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Item 2.
Sales and earnings rose appreciably during the first quarter
of 1996. Sales of $3,901,199 increased 33 percent over
sales of $2,936,137 for the prior March quarter. First
quarter net income of $189,813 or 25 cents a share improved
significantly over earnings of $39,525 or five cents a share
the year before.
The year began with a backlog of $8,885,000. First quarter
bookings raised backlog to approximately $10,391,000 by the
end of March, which compares to the $5,552,000 in backlog at
the close of the first quarter of 1995.
At the company's Annual Meeting of Shareholders held at
company headquarters, April 24, Tinsley's prospects and
opportunities were discussed in the context of the precision
optics industry and markets. It is the Company's conclusion
that the opportunities are considerable, given the Company's
advances in precision optics manufacturing technology.
Today Tinsley is in two distinct businesses. One is the
Company's traditional Precision Optics business, Tinsley
Manufacturing. The second is Film and Video Products, which
the Company entered in May 1993, when the Company acquired
Century Precision Optics of North Hollywood, California.
Century has been a strong contributor to Tinsley's sales and
earnings. Over the past three years a number of new Century
products have been introduced. The Company expects to
introduce several more in 1996 and early 1997.
As for Tinsley, the Parent Company, the product mix is much
more balanced between the commercial and military today.
The Company is looking forward to further improvement in its
business as the needs for high precision optics continue to
grow.
At the Annual Shareholders Meeting, five Directors were
elected to serve for the ensuing year: Robert J. Aronno,
Steven L. Davenport, Daniel J. Duckhorn, Stephen E. Globus
and Steven E. Manios.
Liquidity and Sources of Capital:
Cash used by operations was $69,025 for the three months
ended March 31, 1996, compared to cash provided by
operations of $117,636 in the three months ended March 26,
1995. The funds provided by net income plus depreciation
and amortization for the period, were offset by changes in
working capital accounts. Funds of $545,854 were used by
accounts receivable which increased from the 1995 year end
level. Inventories increased during the three months,
utilizing funds of $223,334. Capital expenditures of
$156,307 and principal payments on debt of $34,536 were paid
from available cash during the three month period. The
Company believes that funds generated from operations should
be sufficient to meet normal cash flow requirements through
the balance of 1996. 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 Statement
filed in connection with the Company's 1996 Annual
Meeting of Shareholders, held on April 24, 1996
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.
/s/ Robert J. Aronno
____________________________
Robert J. Aronno
President and
Chief Executive Officer
May 13, 1996
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-29-1996
<PERIOD-END> MAR-31-1996
<CASH> 312,499
<SECURITIES> 0
<RECEIVABLES> 2,903,878
<ALLOWANCES> 0
<INVENTORY> 2,088,322
<CURRENT-ASSETS> 5,889,999
<PP&E> 9,682,072
<DEPRECIATION> 4,423,432
<TOTAL-ASSETS> 13,534,448
<CURRENT-LIABILITIES> 2,990,571
<BONDS> 0
0
0
<COMMON> 128,662
<OTHER-SE> 8,404,764
<TOTAL-LIABILITY-AND-EQUITY> 13,534,448
<SALES> 3,901,199
<TOTAL-REVENUES> 3,901,199
<CGS> 2,672,264
<TOTAL-COSTS> 3,570,068
<OTHER-EXPENSES> (38,300)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 32,718
<INCOME-PRETAX> 336,713
<INCOME-TAX> 146,900
<INCOME-CONTINUING> 189,813
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 189,813
<EPS-PRIMARY> .25
<EPS-DILUTED> .25
</TABLE>
