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 30, 1996 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 __
771,974 shares of Common Stock outstanding as of June 30, 1996.
<PAGE>
Part 1. Financial Information
Item 1.
<TABLE>
TINSLEY LABORATORIES, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
<CAPTION>
Jun 30, Dec 31,
1996 1995
------- -------
<S> <C> <C>
ASSETS
Current Assets:
Cash and short-term investments $188,215 $560,692
Accounts receivable 3,016,334 2,358,798
Inventories 2,240,878 1,864,988
Prepaid expenses & other 383,856 443,873
---------- ----------
Total current assets 5,829,283 5,228,351
Net property, plant & equipment 6,171,104 5,285,487
Other assets 989,389 909,387
Net goodwill 1,455,877 1,516,963
---------- ----------
$14,445,653 $12,940,188
============ ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Trade account payable $726,162 $491,296
Current income taxes 352,408 362,006
Other accrued liabilities 1,861,476 1,727,688
---------- ----------
Total current liabilities 2,940,046 2,580,990
Long-term debt, less
current portion 1,633,415 500,928
Long-term notes payable
to related parties,
less current portion 460,000 860,000
Deferred income taxes 369,230 369,231
Deferred compensation 314,277 312,102
Stockholders' Equity:
Common stock at stated value 128,662 127,851
Capital in excess of
stated value 1,369,747 1,343,883
Retained earnings 7,358,116 6,973,043
Minimum pension liability (127,840) (127,840)
---------- ----------
Total stockholders' equity 8,728,685 8,316,937
---------- ----------
$14,445,653 $12,940,188
============ ============
</TABLE>
<PAGE>
<TABLE>
TINSLEY LABORATORIES, INC.
Condensed Consolidated Statements of Income
(Unaudited)
<CAPTION>
Three months ended Six months ended
------------------ -----------------
Jun 30, Jun 25, Jun 30, Jun 25,
1996 1995 1996 1995
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net sales $4,250,898 $3,345,290 $8,152,097 $6,281,427
Cost of goods sold 2,869,940 2,340,085 5,542,204 4,349,627
Selling, administrative
and research and
development expenses 949,025 749,762 1,791,286 1,535,665
Amortization of
intangible assets 55,543 55,543 111,086 111,086
---------- --------- ---------- ----------
Income from operations 376,390 199,900 707,521 285,049
Other (income) expense (26,856) 64,337 (65,156) 21,457
Interest expense 56,487 46,647 89,205 88,151
---------- --------- ---------- ---------
Income before taxes 346,759 88,916 683,472 175,441
Provision for taxes
on income 151,500 47,500 298,400 94,500
---------- --------- ---------- ---------
Net income $195,259 $41,416 $385,072 $80,941
========== ========= ========== =========
Per share of common stock:
Net income $0.25 $0.05 $0.50 $0.11
========= ======== ======== =======
</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 six months ended
------------------------
Jun 30, Jun 25,
1996 1995
-------- -------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $385,072 $80,941
Adjustments to reconcile net
income to net cash provided
(used) by operating activities:
Depreciation & amortization 481,853 436,557
Change in operating assets and
liabilities (755,848) (71,047)
--------- ---------
Net cash provided by operating
activities 111,077 446,451
Cash flows from investing activities:
Purchase of fixed assets (1,256,384) (291,098)
Other (30,000) (28,500)
---------- ---------
Net cash used in investing
activities (1,286,384) (319,598)
Cash flows from financing activities:
Proceeds from borrowing
arrangements 1,250,000 0
Principal payments on
long-term debt (473,845) (470,470)
Other 26,675 28,050
--------- ---------
Net cash provided by (used in)
financing activities 802,830 (442,420)
--------- ---------
Net change in cash and cash
equivalents (372,477) (315,567)
Cash and cash equivalents at
beginning of period 560,692 893,241
---------- ---------
Cash and cash equivalents at
end of period $188,215 $577,674
========= =========
Supplemental disclosure of cash
flow information:
Cash paid for:
Interest $99,873 $110,147
Income taxes $201,000 $180,000
</TABLE>
<PAGE>
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 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 six month
period ended June 30, 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>
June 30, December 31,
1996 1995
---------- ------------
<S> <C> <C>
Raw materials $217,625 $230,271
Contracts in progress (net of
cost of progress billings of
$643,000 at October 1, 1995
and $431,000 at
December 31, 1995) 1,267,912 874,604
Finished goods 755,341 760,113
---------- ----------
$2,240,878 $1,864,988
=========== ===========
</TABLE>
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF QUARTERLY FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Item 2.
The positive trend in the company's operating results we reported for the
first quarter continued through the first half, with further gains in sales,
net income and backlog.
Thus sales for the first six months advanced to $8,152,097, rising 30
percent over first half sales last year of $6,281,427. Our net income of
$385,072 or 50 cents a share improved significantly over the $80,941 or 11
cents a share we earned a year ago.
Sales for the June quarter increased to $4,250,898, up 27 percent from last
year's sales for the June quarter of $3,345,290. Second quarter net income
was appreciably higher: $195,259 or 25 cents a share compared to $41,416
or five cents a share a year ago.
Our level of business was generally higher in the first half, raising backlog
to approximately $11,025,000 by the end of June. At the start of the year
backlog was approximately $8,885,000 and $6,907,000 at the end of June,
1995.
Liquidity and Sources of Capital:
Cash of $111,077 was provided by operating activities during the six
months ended June 30, 1996, compared to $446,451 in the similar period
ended June 25, 1995. Funds provided by net income plus depreciation and
amortization amounted to $866,925, but was offset $755,848 due to
changes in operating assets and liabilities. Most notably accounts
receivable increased $665,385 and inventories increased $375,890 from
their 1995 year end balances.
The Company made capital acquisitions totaling $1,256,384 during the first
six months of 1996, of which $910,000 was used for the purchase of the
building adjacent to our Richmond facility.
The Company financed part of this purchase with a note payable to the
former owner of the property in the amount of $750,000. This note requires
interest only payments each month for two years, at which time the
principal become due.
The Company drew down $500,000 against its $1 million line of credit
during the six months. Principal payments against debt agreements
totaled $473,845.
The Company expects that funds generated from operations and available
through established borrowing agreements should be sufficient to meet
normal cash flow requirements through the balance of 1996.
<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 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
July 25, 1996
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-29-1996
<PERIOD-END> JUN-30-1996
<CASH> 188,215
<SECURITIES> 0
<RECEIVABLES> 3,016,334
<ALLOWANCES> 0
<INVENTORY> 2,240,878
<CURRENT-ASSETS> 5,829,283
<PP&E> 10,782,149
<DEPRECIATION> 4,611,045
<TOTAL-ASSETS> 14,445,653
<CURRENT-LIABILITIES> 2,940,046
<BONDS> 0
0
0
<COMMON> 128,662
<OTHER-SE> 8,600,023
<TOTAL-LIABILITY-AND-EQUITY> 14,445,653
<SALES> 8,152,097
<TOTAL-REVENUES> 8,152,097
<CGS> 5,542,204
<TOTAL-COSTS> 7,444,576
<OTHER-EXPENSES> (65,156)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 89,205
<INCOME-PRETAX> 683,472
<INCOME-TAX> 298,400
<INCOME-CONTINUING> 385,072
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 385,072
<EPS-PRIMARY> .50
<EPS-DILUTED> .50
</TABLE>
