-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FuqJlEv0s3S5/g1RwUN+1knD7ZVbZxVI4fA4yyAq9LoqqMNukE7CphGmDkjdXJwN 2Mh4SwLlrCDvZG+scY2BDg== 0000893220-99-000549.txt : 19990507 0000893220-99-000549.hdr.sgml : 19990507 ACCESSION NUMBER: 0000893220-99-000549 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990403 FILED AS OF DATE: 19990506 FILER: COMPANY DATA: COMPANY CONFORMED NAME: K TRON INTERNATIONAL INC CENTRAL INDEX KEY: 0000000020 STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL INSTRUMENTS FOR MEASUREMENT, DISPLAY, AND CONTROL [3823] IRS NUMBER: 221759452 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-09576 FILM NUMBER: 99612197 BUSINESS ADDRESS: STREET 1: ROUTE 55 & 553 STREET 2: BOX 888 CITY: PITMAN STATE: NJ ZIP: 08071-0888 BUSINESS PHONE: 6096616240 MAIL ADDRESS: STREET 1: ROUTE 55 & 553 STREET 2: P O BOX 888 CITY: PITMAN STATE: NJ ZIP: 08071-0888 10-Q 1 K-TRON INTERNATIONAL, INC. FORM 10-Q 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ---------- FORM 10-Q (Mark One) [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended April 3, 1999 -------------------------------- OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to -------------- ----------------- Commission file number 0-9576 ---------- K-TRON INTERNATIONAL, INC. - -------------------------------------------------------------------------------- (Exact Name of Registrant as Specified in Its Charter) New Jersey 22-1759452 - -------------------------------------------------------------------------------- (State or Other Jurisdiction of Incorporation (I.R.S. Employer or Organization) Identification #) Routes 55 & 553, P.O. Box 888, Pitman, New Jersey 08071-0888 - -------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) Registrant's Telephone Number, Including Area Code (609) 589-0500 ------------------------------ Not Applicable - -------------------------------------------------------------------------------- (Former Name, Former Address and Formal Fiscal Year, if Changed Since Last Report) Indicate by check [X] 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 --- --- The number of shares of Common Stock outstanding as of April 3, 1999 was: ------------- 2,947,105 Shares - ---------------- 2 K-TRON INTERNATIONAL, INC. AND SUBSIDIARIES INDEX -----
Page No. -------- PART I. FINANCIAL INFORMATION --------------------- Item 1. Financial Statements Consolidated Balance Sheets April 3, 1999 and January 2, 1999 1 Consolidated Statements of Income & Retained Earnings for the Three Months Ended April 3, 1999 and April 4, 1998 2 Consolidated Statements of Cash Flows for the Three Months Ended April 3, 1999 and April 4, 1998 3 Notes to Consolidated Financial Statements 4 - 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 7 - 11 PART II. OTHER INFORMATION ----------------- Item 6. Exhibits and Reports on Form 8-K 12
3 PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS. K-TRON INTERNATIONAL, INC. & SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in Thousands except Share Data)
April 3, January 2, 1999 1999 (Unaudited) (Audited) ----------- --------- ASSETS CURRENT ASSETS: Cash and cash equivalents $ 2,863 $ 3,220 Accounts receivable (less allowance for doubtful accounts of $1,214 and $1,286) 16,256 19,034 Inventories 11,663 10,743 Deferred income taxes 819 819 Prepaid expenses and other current assets 1,695 1,177 -------- -------- Total current assets 33,296 34,993 PROPERTY, PLANT AND EQUIPMENT, net 15,683 16,215 PATENTS, net 772 751 GOODWILL, net 4,073 4,454 OTHER ASSETS 195 204 -------- -------- Total assets $ 54,019 $ 56,617 ======== ======== LIABILITIES & SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Notes payable to banks $ -- $ 254 Current portion of long-term debt 890 1,280 Accounts payable 6,790 6,965 Accrued expenses & other current liabilities 4,189 4,034 Accrued payroll 2,353 4,307 Accrued commissions 2,029 2,609 Customer advances 2,797 1,810 Accrued warranty 987 1,055 Income taxes payable 1,396 1,233 -------- -------- Total current liabilities 21,431 23,547 LONG-TERM DEBT, net of current portion 10,568 9,638 DEFERRED INCOME TAXES 423 423 OTHER NONCURRENT LIABILITIES 588 735 COMMITMENTS AND CONTINGENCIES SERIES A JUNIOR PARTICIPATING PREFERRED SHARES, $.01 par value - authorized 50,000 shares; none issued -- -- SHAREHOLDERS' EQUITY: Preferred stock, $.01 par value - authorized 950,000 shares; none issued -- -- Common stock, $.01 par value - authorized 50,000,000 shares; issued 4,330,055 shares and 4,328,555 shares 43 43 Paid-in capital 15,575 15,505 Retained earnings 23,199 21,839 Cumulative translation adjustments (1,199) (192) -------- -------- 37,618 37,195 -------- -------- Treasury stock, 1,382,950 and 1,295,450 shares - at cost (16,609) (14,921) -------- -------- Total shareholders' equity 21,009 22,274 -------- -------- Total liabilities and shareholders' equity $ 54,019 $ 56,617 ======== ========
See Notes to Consolidated Financial Statements -1- 4 K-TRON INTERNATIONAL, INC. & SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME & RETAINED EARNINGS (Dollars in Thousands except Share Data) (Unaudited)
Three Months Ended --------------------- April 3, April 4, 1999 1998 ---- ---- REVENUES $ 19,840 $ 21,455 COST OF REVENUES 10,719 11,815 ---------- ---------- Gross profit 9,121 9,640 OPERATING EXPENSES: Selling, general and administrative 6,606 6,855 Research and development 821 735 ---------- ---------- 7,427 7,590 ---------- ---------- Operating income 1,694 2,050 INTEREST EXPENSE 134 208 ---------- ---------- Income before income taxes 1,560 1,842 INCOME TAX PROVISION 200 535 ---------- ---------- Net income 1,360 1,307 RETAINED EARNINGS Beginning of period 21,839 15,246 ---------- ---------- End of period $ 23,199 $ 16,553 ========== ========== EARNINGS PER SHARE Basic $ .46 $ . 40 ========== ========== Diluted $ .44 $ .39 ========== ========== AVERAGE COMMON SHARES OUTSTANDING 2,976,000 3,236,000 ========== ========== AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING 3,076,000 3,331,000 ========== ==========
See Notes to Consolidated Financial Statements -2- 5 K-TRON INTERNATIONAL, INC. & SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in Thousands) (Unaudited)
Three Months Ended ------------------ April 3, April 4, 1999 1998 ---- ---- OPERATING ACTIVITIES: Net income $1,360 $1,307 Adjustment to reconcile net income to net cash provided by operating activities: Depreciation and amortization 803 734 Amortization of deferred gain on sale/leaseback transaction (96) (93) Changes in assets and liabilities: Accounts receivable, net 1,935 (1,486) Inventories (1,421) (187) Prepaid expenses and other current assets (624) 88 Other assets (7) 396 Accounts payable 241 305 Accrued expenses and other current liabilities (858) (941) Accrued warranty (19) 64 Income taxes 194 157 ------- ------- Net cash provided by operating activities 1,508 344 ------- ------- INVESTING ACTIVITIES: Capital expenditures (902) (756) Investment in patents (40) (25) ------- ------- Net cash used in investing activities (942) (781) ------- ------- FINANCING ACTIVITIES: Net repayments under notes payable to banks (244) (696) Principal payments on long-term debt (421) (601) Proceeds from issuance of long-term debt 1,500 405 Purchase of treasury stock (1,812) -- Proceeds from issuance of common stock 194 281 ------- ------- Net cash used in financing activities (783) (611) ------- ------- EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (140) (111) ------- ------- NET DECREASE IN CASH AND CASH EQUIVALENTS (357) (1,159) ------- ------- CASH AND CASH EQUIVALENTS Beginning of period 3,220 5,154 ------- ------- End of period $2,863 $3,995 ======= =======
See Notes to Consolidated Financial Statements -3- 6 K-TRON INTERNATIONAL, INC. & SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS April 3, 1999 (Unaudited) 1. Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with the instructions for Form 10-Q and do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The consolidated financial statements include the accounts of K-Tron International, Inc. and its subsidiaries ("K-Tron" or the "Company"). All intercompany transactions have been eliminated in consolidation. In the opinion of management, all adjustments (consisting of a normal recurring nature) considered necessary for a fair presentation of results for interim periods have been made. The results for the interim periods are not necessarily indicative of the results for a full year. The unaudited financial statements herein should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended January 2, 1999 which was previously filed with the Securities and Exchange Commission. 2. Supplemental Disclosures of Cash Flow Information The Company considers all highly liquid short-term investments purchased with a maturity of three months or less to be cash equivalents. Cash paid in the first three months of 1999 and 1998 for interest was $.1 million and $.2 million, respectively, and for income taxes was $.0 million and $.3 million, respectively. 3. Earnings per Share The Company adopted Statement of Financial Accounting Standards ("SFAS") No. 128, "Earnings per Share." SFAS No. 128 requires that the Company report Basic and Diluted Earnings Per Share. Basic Earnings Per Share represents net income less preferred dividends divided by the weighted average common shares outstanding. Diluted Earnings Per Share is calculated similarly, except that the denominator includes weighted average common shares outstanding plus the dilutive effect of options, warrants, convertible securities and other instruments with dilutive effects if exercised. The Company's Basic and Diluted Earnings Per Share are calculated as follows:
For the Three Months Ended April 3, 1999 -------------------------------------------- (Dollars in Thousands except Per Share Data) Income Available To Common Per Share Shareholders Shares Amount ------------ ------ ------ Basic Net Income $1,360 2,976,000 $ .46 Common Share Equivalent of Options Issued -- 100,000 (.02) ------ --------- -------- Diluted $1,360 3,076,000 $ .44 ====== ========= ========
-4- 7
For the Three Months Ended April 4, 1998 -------------------------------------------- (Dollars in Thousands except Per Share Data) Income Available To Common Per Share Shareholders Shares Amount ------------ ------ ------ Basic Net Income $1,307 3,236,000 $ .40 Common Share Equivalent of Options Issued -- 95,000 (.01) ------ --------- -------- Diluted $1,307 3,331,000 $ .39 ====== ========= =========
Diluted earnings per common share are based on the weighted average number of common and common equivalent shares outstanding. Such average shares include the weighted average number of common shares outstanding plus the shares issuable upon exercise of stock options after the assumed repurchase of common shares with the related proceeds. 4. Impact of New Accounting Pronouncements In 1998, the Company adopted SFAS No. 130, "Reporting Comprehensive Income". SFAS No. 130 establishes standards for the reporting and display of comprehensive income and its components. Comprehensive income is the total of net income and the current year change in cumulative translation adjustments which is the only nonowner change in equity. For the three months in the period ended April 3, 1999 and April 4, 1998, the following table sets forth the Company's comprehensive income:
Three Months Ended ----------------------- April 3, April 4, 1999 1998 ---- ---- (Dollars in Thousands) Net Income $ 1,360 $ 1,307 Cumulative Translation Adjustments (1,007) (499) ------- ------- Comprehensive Income $ 353 $ 808 ======= =======
In 1998 the Company adopted the provisions of SFAS No. 131, "Disclosures About Segments of an Enterprise and Related Information." SFAS No. 131 introduces a new model for segment reporting called the management approach. The management approach is based on the way that the chief operating decision maker organizes segments within a company for making operating decisions and assessing performance. The Company is engaged in one business segment, the development, manufacturing and marketing of gravimetric and volumetric feeders, pneumatic conveying systems and related equipment. The Company operates in two primary geographic locations, North America and Western Europe. For the three months in the period ended April 3, 1999 and April 4, 1998, the following tables set forth the Company's segment information: -5- 8
North Western Elimi- Consoli- America Europe nations dated ------- ------ ------- ----- (in thousands) QUARTER ENDED APRIL 3, 1999: Revenues- Sales to unaffiliated customers $ 7,327 $12,513 $ -- $19,840 Sales to affiliates 1,011 521 (1,532) -- ------- ------- ------- ------- Total sales $ 8,338 $13,034 $(1,532) $19,840 ======= ======= ======= ======= Operating income $ 591 $ 1,107 $ (4) $ 1,694 ======= ======= ======= Interest expense (134) ------- Income before income taxes $ 1,560 ======= QUARTER ENDED APRIL 4, 1998: Revenues- Sales to unaffiliated customers $ 9,218 $12,237 $ -- $21,455 Sales to affiliates 436 1,554 (1,990) -- ------- ------- ------- ------- Total sales $ 9,654 $13,791 $(1,990) $21,455 ======= ======= ======= ======= Operating income $ 1,350 $ 569 $ 131 $ 2,050 ======= ======= ======= Interest expense (208) ------- Income before income taxes $ 1,842 =======
-6- 9 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. Results of Operations For the first three months of 1999 and 1998, the Company reported net income of $1,360,000 and $1,307,000, respectively. K-Tron is an international company which derived approximately 63% and 57% of its first quarter 1999 and 1998 revenues, respectively, from products manufactured in, and services performed from, its facilities located outside the United States, primarily in Europe. As such, the financial position and performance of the Company is sensitive to changes in foreign currency exchange rates ("foreign exchange rates"), which can affect both the translation of financial statement items into U.S. dollars and the impact of transactions where the revenues and related expenses may initially be accounted for in different currencies, such as sales made from the Company's Swiss manufacturing facilities in currencies other than the Swiss franc. The following table sets forth the Company's results of operations expressed as a percentage of total revenues for the periods indicated:
Three Months Ended --------------------------------- April 3, 1999 April 4, 1998 ------------- ------------- Total revenues 100.0% 100.0% Cost of revenues 54.0 55.1 ----- ----- Gross profit 46.0 44.9 Selling, general & administrative 33.3 31.9 Research & development 4.1 3.4 ----- ----- Operating income 8.6 9.6 Interest .7 1.0 ----- ----- Income before income taxes 7.9% 8.6% ===== =====
Backlog at end of period (at April 3, 1999 foreign exchange rates, in thousands) April 1999 December 1998 April 1998 ---------- ------------- ---------- $24,096 $21,375 $21,810 ======= ======= =======
-7- 10 As noted above, more than half of the Company's revenues are normally derived from activities in foreign jurisdictions. Consequently, the Company's results can be significantly affected by changes in foreign exchange rates, particularly in U.S. dollar exchange rates with respect to the Swiss franc, German mark and euro and, to a lesser degree, the British pound sterling, French franc and other currencies. When the U.S. dollar strengthens against these currencies, the U.S. dollar value of non-U.S. dollar-based sales decreases. When the U.S. dollar weakens against these currencies, the U.S. dollar value of non-U.S. dollar-based sales increases. Correspondingly, the U.S. dollar value of non-U.S. dollar-based costs increases when the U.S. dollar weakens and decreases when the U.S. dollar strengthens. Overall, the Company typically receives a majority of its revenues in currencies other than the U.S. dollar and, as such, benefits from a weaker dollar and is adversely affected by a stronger dollar relative to major currencies worldwide, especially those identified above. Accordingly, changes in foreign exchange rates, and in particular a strengthening of the U.S. dollar, may adversely affect the Company's total revenues, gross profit and operating income as expressed in U.S. dollars. In addition, revenues and income of the Company with respect to particular transactions may be affected by changes in foreign exchange rates where sales are made in currencies other than the functional currency of the facility manufacturing the product subject to the sale, including in particular the U.S. dollar/Swiss franc (for inter-company transactions) and the euro/Swiss franc and German mark/Swiss franc exchange rates (for sales from the Company's Swiss manufacturing facilities which are made in euros or German marks). For the first three months of 1999 as well as the same period in 1998, the changes in these and the U.S. dollar/euro and U.S. dollar/German mark exchange rates were as follows:
Three Months Ended ---------------------- April 3, April 4, 1999 1998 ---- ---- Average U.S. dollar equivalent of one Swiss franc $.698 $.677 % change vs. prior year +3.1% Average U.S. dollar equivalent of one euro $1.12 N/A Average U.S. dollar equivalent of one German mark $.570 $.549 % change vs. prior year +3.8% Average Swiss franc equivalent of one German mark .817 .811 % change vs. prior year +0.7% Average Swiss franc equivalent of one euro 1.605 N/A
Total revenues decreased by $1.6 million or 7.5% in the first quarter of 1999 compared to the same period in 1998. The decrease in revenues would have been greater except for the higher exchange translation rates of certain currencies into U.S. dollars. The decrease in 1999 revenues was primarily in the United States. If the average foreign exchange translation rates for the first quarter of 1999 were applied to the same period in 1998, revenues would have decreased 8.6% for the quarter. -8- 11 Gross profit as a percent of revenues improved to 46.0% for the first quarter of 1999 as compared to 44.9% for the same period in 1998. The improvement in gross margin in 1999 was primarily due to higher sales of more profitable products in Europe. Selling, general and administrative (SG&A) expense decreased by $.2 million or 3.6% for the first quarter of 1999 as compared to the same period in 1998. The first quarter decrease in SG&A was due to lower selling expenses in local currencies, offset in part by higher foreign exchange translation rates. As a percent of total revenues, SG&A was 33.3% in 1999 and 31.9% in 1998, with the increase reflecting lower 1999 first quarter revenues. Research and development (R&D) expenditures increased by $.1 million or 11.7% for the first quarter of 1999 as compared to the same period in 1998. R&D expenses increased due to greater emphasis on the development of new products and enhancements to existing products, as well as to higher foreign exchange translation rates. R&D expense as a percent of total revenues was 4.1% in 1999 and 3.4% in 1998, reflecting in part lower 1999 first quarter revenues. Interest expense decreased by $.1 million or 35.6% for the first quarter of 1999 as compared to the same period in 1998, primarily due to lower debt levels and lower rates on some loans. The effective tax rate for the first quarter of 1999 was 12.8% compared to 29.0% for the same period in 1998. The effective tax rate for 1999 was lower than the same period in 1998 due to reduced income in the United States and increased income in Switzerland, enabling the Company to utilize foreign net operating loss carryforwards with full valuation allowances. The backlog increased by 12.7% at the end of the first quarter when compared to the end of 1998 and by 10.5% when compared to the same period in 1998, in each case at constant foreign exchange rates. The increase was primarily in the United States. Liquidity and Capital Resources The Company's capitalization as of the end of the first quarter of 1999 and as of the end of fiscal years 1998 and 1997 is set forth below:
April 3, January 2, January 3, (Dollars in Thousands) 1999 1999 1998 ---------- ---------- --------------- Short-term debt, including current portion of long-term debt $ 890 $ 1,534 $ 3,148 Long-term debt 10,568 9,638 10,619 ------- ------- ------- Total debt 11,458 11,172 13,767 Shareholders' equity 21,009 22,274 18,892 ------- ------- ------- Total debt and shareholders' equity $32,467 $33,446 $32,659 ======= ======= ======= Percent total debt to total capitalization 35% 33% 42% Percent long-term debt to equity 50% 43% 56% Percent total debt to equity 55% 50% 73%
-9- 12 Total debt increased by $.3 million in the first three months of 1999, and this increase would have been $.8 million using a constant foreign exchange rate. U.S. debt increased by $1.4 million while European debt decreased by $1.1 million ($.6 million at a constant foreign exchange rate). The increase in U.S. debt was due to the borrowing of $1.5 million to help finance the January 1999 repurchase of 100,000 shares of the Company's common stock for $1.8 million. At April 3, 1999, the Company had $3.5 million of availability under its U.S. loan agreements and $4.1 million of availability under its Swiss loan agreements. At April 3, 1999, there was working capital of $11.9 million as compared to $11.4 million at January 2, 1999, and the ratio of current assets to current liabilities at those dates was 1.55 and 1.49, respectively. In the first three months of 1999 and 1998, the Company utilized internally-generated funds to meet its working capital needs. Net cash provided by operating activities was $1.5 million in the first three months of 1999 as compared to $.3 million in the same period of 1998. The higher operating cash flow for 1999 was primarily due to a decrease in accounts receivable. Net cash used in investing activities in the first three months of 1999 and 1998 was for capital additions. Net cash used in financing activities in the first three months of 1999 was primarily for the repurchase of 100,000 shares of the Company's common stock for $1.8 million and the reduction of debt. The cash was provided by operating activities and the $1.5 million borrowing which was used to finance the share repurchase. Changes in foreign exchange rates, particularly with respect to the Swiss franc and Deutsche mark, caused a translation adjustment decrease in shareholders' equity of $1.0 million in the first three months of 1999. Readiness for Year 2000 The Company has substantially completed an evaluation of its information technology infrastructure for Year 2000 compliance and has substantially implemented its Year 2000 compliance strategy. The cost to modify its information technology infrastructure to be Year 2000 compliant has not been and is not expected to be material to its financial condition or results of operations. The Company does not anticipate any material disruptions in its business as a result of any failure by the Company to be Year 2000 compliant. The Company anticipates having all systems Year 2000 compliant no later than September 30, 1999 and has not developed a contingency plan. If Year 2000 compliance issues are discovered, the Company then will evaluate the need for a contingency plan relative to those issues. -10- 13 The Company is also in the process of obtaining information concerning the Year 2000 compliance status of its significant suppliers, customers and business partners to determine the extent to which the Company is vulnerable to these third parties' failure to remedy their Year 2000 problems. There can be no assurance that such suppliers, customers and business partners are or will be Year 2000 compliant. The risk to the Company resulting from the failure of third parties in the public and private sector to attain Year 2000 readiness is the same as for other firms in the Company's industry or other business enterprises generally and could involve many different types of disruption to the Company's business. The costs to complete the Company's Year 2000 evaluation and to secure Year 2000 compliance are based on management's best estimates. These estimates were derived using numerous assumptions, including continued availability of resources, third party contingency plans and other factors. However, there can be no assurance that these estimates will be achieved and actual results could differ materially from those anticipated. The following are representative of the types of risks that could result in the event a critical component of the Company's information systems, factories or facilities fails to be Year 2000 ready, or there is a similar failure by one or more major third party suppliers to the Company: (i) information systems--could include interruptions or disruptions of business and transaction processing such as customer billing, payroll, accounts payable and other operating and information processes, until systems can be remedied or replaced; (ii) factories and facilities--could include interruptions or disruptions of manufacturing processes and facilities with delays in delivery of products, until non-compliant conditions or components can be remedied or replaced; and (iii) major suppliers to the Company--could include interruptions or disruptions of the supply of materials and supplies which could cause interruptions or disruptions of manufacturing and delays in delivery of products, until the third party supplier can remedy the problem or contingency measures can be implemented. -11- 14 PART II. OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. (a) Exhibits 27.1 Financial Data Schedule (b) Reports on Form 8-K There were no reports on Form 8-K for the three months ended April 3, 1999. -12- 15 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. K-TRON INTERNATIONAL, INC. Date: May 6, 1999 By: /s/ Alan R. Sukoneck ----------------------- Alan R. Sukoneck Vice President, Chief Accounting & Tax Officer (Duly authorized officer, acting principal financial officer and chief accounting officer of the registrant) -13- 16 EXHIBIT INDEX Exhibit Number Description -------------- ----------- 27.1 Financial Data Schedule EX-27.1 2 FINANCIAL DATA SCHEDULE
5 1,000 3-MOS JAN-01-2000 APR-03-1999 2,863 0 17,470 1,214 11,663 33,296 42,143 26,460 54,019 21,431 10,568 0 0 43 20,966 54,019 19,840 19,840 10,719 10,719 7,427 0 134 1,560 200 1,360 0 0 0 1,360 .46 .44
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