-----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, WIONWXX4QCRZTF745031sfGAqZuUh4m/vrk9nCI2n2Byc9wYmJxYb71X0ficrWD9 J0YzCDIfiHT3UHvy8BWYIw== 0000002070-00-000011.txt : 20000215 0000002070-00-000011.hdr.sgml : 20000215 ACCESSION NUMBER: 0000002070-00-000011 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19991230 FILED AS OF DATE: 20000214 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ACME ELECTRIC CORP CENTRAL INDEX KEY: 0000002070 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRICAL INDUSTRIAL APPARATUS [3620] IRS NUMBER: 160324980 STATE OF INCORPORATION: NY FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-08277 FILM NUMBER: 541335 BUSINESS ADDRESS: STREET 1: 400 QUAKER RD CITY: EAST AURORA STATE: NY ZIP: 14052 BUSINESS PHONE: 7166553800 MAIL ADDRESS: STREET 1: 400 QUAKER ROAD CITY: EAST AURORA STATE: NY ZIP: 14052 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 (Mark one) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended December 30, 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 1-8277 ACME ELECTRIC CORPORATION (Exact name of registrant as specified in its charter) STATE OF NEW YORK 16-0324980 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 400 Quaker Road, East Aurora, New York 14052 (Address of principal executive offices) 716/655-3800 (Telephone Number) 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. (1) YES x NO ____ (2) YES x NO ____ Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date. Class Outstanding at December 30, 1999 Common Stock, Par Value $1.00 Per Share 5,075,145 PART I - FINANCIAL INFORMATION ITEM I - CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEET Unaudited Audited December 30, 1999 June 30, 1999 (000s) (000s) ------ ------ ASSETS - ------ Current Assets: Cash $ 236 $ 203 Accounts receivable, net 10,960 11,304 Inventories, net 11,592 9,270 Deferred income taxes 1,311 1,311 Other current assets 939 652 ------ ------ Total current assets 25,038 22,740 ------ ------ Property, plant and equipment, at cost 40,537 39,028 Less accumulated depreciation (25,844) (24,776) ------ ------ Total property, plant & equipment, net 14,693 14,252 ------ ------ Other Assets 4,777 4,396 ------ ------ Total Assets $44,508 $41,388 ====== ====== LIABILITIES AND SHAREHOLDERS' EQUITY - ------------------------------------ Current Liabilities: Accounts payable $ 5,148 $ 3,766 Accrued compensation and other 3,798 4,528 Current portion of long-term debt 996 2,258 ------ ------ Total current liabilities 9,942 10,552 ------ ------ Long-term debt 8,199 5,987 Other long-term liabilities 3,116 2,973 ------ ------ Total Liabilities $21,257 $19,512 ------ ------ Shareholders' Equity: Common stock, Par Value $1.00 Authorized 8,000,000 shares Issued 5,075,145 and 5,071,658 shares 5,075 5,072 Capital in excess of par value 19,147 19,134 Accumulated deficit (963) (2,322) Less: Treasury stock at cost (699 Shares) (8) (8) ------ ------ Total Shareholders' Equity 23,251 21,876 ------ ------ Total Liabilities and Shareholders' Equity $44,508 $41,388 ====== ====== See accompanying Notes to Financial Statements. CONSOLIDATED STATEMENT OF INCOME (Unaudited) 13 Weeks 13 Weeks 26 Weeks 26 Weeks Ended Ended Ended Ended 12/30/99 01/02/99 12/30/99 01/02/99 (000s) (000s) (000s) (000s) ------ ------ ------ ------ NET SALES $19,247 $18,803 $38,518 $41,181 ------ ------ ------ ------ COSTS AND EXPENSES: - ------------------ Cost of Sales 13,614 13,694 27,012 30,430 Research and Engineering Exp. 839 894 1,734 1,862 Selling and Administrative Exp.3,830 3,349 7,119 6,915 Interest Expense 149 208 268 460 ------ ------ ------ ------ TOTAL COSTS AND EXPENSES 18,432 18,145 36,133 39,667 ------ ------ ------ ------ INCOME BEFORE TAXES 815 658 2,385 1,514 INCOME TAX EXPENSE 398 256 1,026 590 ------ ------ ------ ------ NET INCOME $ 417 $ 402 $ 1,359 $ 924 ====== ====== ====== ====== Weighted Average Number of Shares Outstanding Used to Compute Net Income per Common Share: Basic 5,074 5,057 5,073 5,056 Incremental Shares from assumed conversion of stock options 78 31 62 22 ----- ----- ----- ----- Diluted 5,152 5,088 5,135 5,078 ===== ===== ===== ===== NET INCOME PER COMMON SHARE Basic $.08 $.08 $.27 $.18 Diluted $.08 $.08 $.26 $.18 See accompanying Notes to Financial Statements CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) 26 Weeks Ended 26 Weeks Ended December 30, 1999 January 2, 1999 (000's) (000's) Cash flows from operating activities: Net Income $ 1,359 $ 924 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation and amortization 1,068 1,103 Loss on sale of fixed assets -- 35 Change in assets and liabilities: Accounts receivable, net 344 1,748 Inventories, net (2,322) 1,920 Deferred taxes and other assets (668) (360) Accounts payable 1,382 (1,056) Accrued compensation and other (587) (310) ------ ------ Net cash provided from operating activities 576 4,004 ----- ----- Cash flows from investing activities: Proceeds from disposition -- 4 Additions to property, plant and equipment (1,509) (722) ------ ------ Net cash used in investing activities (1,509) (718) ------ ------ Cash flows from financing activities: Increase (decrease) of borrowings, net 950 (3,561) Proceeds from employee stock purchase and stock options plans 16 28 ------ ------ Net cash provided (used) in financing activities 966 (3,533) ------ ------ Net increase (decrease) in cash 33 (247) Cash at beginning of period 203 629 ------ ------ Cash at end of period $ 236 $ 382 ====== ====== See accompanying Notes to Financial Statements. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. The Consolidated Financial Statements presented herein include the accounts of Acme Electric Corporation and its subsidiaries ("Registrant" or "Company"). The Consolidated Balance Sheet of the Company at December 30, 1999, the Consolidated Statement of Income for the thirteen- and twenty-six-week periods ended December 30, 1999, and January 2, 1999, and the Consolidated Statement of Cash Flows for the twenty-six-week periods ended December 30, 1999, and January 2, 1999, include all adjustments necessary for a fair representation of the results for such periods. The unaudited financial data included herein was compiled in accordance with the "Summary of Significant Accounting Principles and Practices" (Note 1 of Notes to Financial Statements) contained in the Registrant's 1999 Annual Report filed on Form 10-K. The Company had no components of comprehensive income other than net income for all periods presented. Recently issued accounting standards. ------------------------------------ Effective July 1, 1999, the Company adopted the American Institute of Certified Public Accountants' (AICPA) Statement of Position (SOP) 98- 5, Reporting on the Costs of Start-up Activities. Accordingly, all start-up costs associated with the Company's Mexican initiative have been expensed as incurred. In June 1998, the Financial Accounting Standards Board (FASB) issued Statement of Financial Account Standards (SFAS) No. 133, "Accounting for Derivative Instruments and Hedging Activities." The Statement establishes accounting and reporting standards for derivative instruments. The FASB has delayed the required adoption date for implementation of this Statement until the fiscal year beginning July 1, 2000. The financial statement impact from the adoption of SFAS No. 133 is not expected to be material. 2. Accounts receivables included in the Consolidated Balance Sheet are net of allowances for doubtful accounts of $265,000 and $171,000 at December 30, 1999, and June 30, 1999, respectively. 3. Inventories included in the Consolidated Balance Sheet are as follows: December 30, 1999 June 30, 1999 ($000s) ($000s) ------ ------ Raw Material $6,725 $5,029 Work-In-Process 1,844 1,759 Finished Goods 3,023 2,482 ------ ------ $11,592 $ 9,270 Inventories are reported net of reserves for obsolescence of $1,200,000 and $1,217,000 at December 30 and June 30, respectively. 4. Segment Reporting Disclosures The Company has adopted FASB Statement No. 131, "Disclosures about Segments of an Enterprise and Related Information." This statement revised the manner in which the Company reports information concerning its operating segments. Each business segment has a separate manufacturing facilities. The Company operates in three business segments: Aerospace, Electronics, and Power Distribution Products. The Company's reportable segments are strategic business units that offer different products and services to different markets. The segments are managed separately, based on the fundamental differences of their operations. Information by industry segment is as follows (dollars in thousands): 13 Weeks 13 Weeks 26 Weeks 26 Weeks Ended Ended Ended Ended 12/30/99 01/02/99 12/30/99 01/02/99 (000s) (000s) (000s) (000s) ------ ------ ------ ------ Net Sales Aerospace $2,397 $2,811 $4,865 $5,601 Electronics 3,883 4,756 7,551 11,151 Power Distribution Products 12,967 11,236 26,102 24,429 ------ ------ ------ ------ Combined 19,247 18,803 38,518 41,181 ====== ====== ====== ====== Operating Income (Loss) Aerospace (29) 262 190 327 Electronics (181) (424) (530) (336) Power Distribution Products 2,151 1,885 4,702 4,046 ----- ----- ----- ----- Combined 1,941 1,723 4,362 4,037 General Corporate Expense (977) (857) (1,709) (2,063) Interest Expense (149) (208) (268) (460) ----- ------ ----- ------ Earnings Before Income Taxes 815 658 2,385 1,514 ==== ==== ====== ====== Identifiable Assets Aerospace 4,527 4,905 4,527 4,905 Electronics 15,534 13,898 15,534 13,898 Power Distribution Products 18,727 14,824 18,727 14,824 General Corporate 5,720 7,893 5,720 7,893 ------ ------ ------ ------ Combined 44,508 41,520 44,508 41,520 ====== ====== ====== ====== Depreciation and Amortization Aerospace 98 76 195 186 Electronics 176 186 352 420 Power Distribution Products 119 115 236 229 General Corporate 143 133 285 268 ---- ---- ------ ------ Combined 536 510 1,068 1,103 === === ====== ====== Capital Expenditures Aerospace 66 47 158 84 Electronics 104 258 146 300 Power Distribution Products 879 91 1,012 279 General Corporate 37 7 193 59 ----- ---- ----- ---- Combined $1,086 $403 $1,509 $722 ===== ==== ====== ==== Management's Discussion and Analysis of Financial Condition and Results of Operations The following is Management's discussion and analysis of certain significant factors which have affected the Registrant's financial condition and results of operations during the periods included in the accompanying financial statements. A summary of the period-to-period change in the principal items included in the Consolidated Balance Sheet and which affect financial condition follows: Comparison of Consolidated Balance Sheets at December 30, 1999 and June 30, 1999 Increase (Decrease) (000's) Current Assets $2,298 Property, Plant & Equipment Net 441 Other Assets 381 ------ $3,120 ====== Current Liabilities $ (610) Long-Term Debt and Other Liabilities 2,355 Shareholders' Equity 1,375 ------ $3,120 ====== Current assets at December 30, 1999, increased $2,298,000, or 10.1%, from June 30, 1999, levels due primarily to an increase in inventories. Inventories were increased as a result of several factors, including planned increases of raw material safety stocks related to Y2K planning, continued start-up activity with the Mexican manufacturing initiative, and ramp up on several new customer programs in the Company's power distribution products business. Further contributing to inventory increases was customer-related order delays associated with the new magnetic resonance imaging device program in the Company's electronics business. The net increase in property, plant and equipment of $441,000, or 3.1%, primarily represents year-to-date expenditures in the amount of $1,509,000, primarily associated with the Monterrey, Mexico, startup, offset by depreciation of $1,068,000. The increase in other assets of $381,000, or 8.7%, reflects an increase in the pension asset the Company records associated with its defined benefit pension plans. To date (through December 30, 1999), the Company has recorded approximately $380,000 of income from these plans, compared to income of approximately $520,000 for the similar six-month period of a year ago. Current liabilities decreased $610,000, or 5.8%, as a result of performance incentive payouts made against the June 30, 1999, accruals and the early buyout of the lease obligation associated with the business information system. These reductions in current liabilities were partially offset with increased trade payables associated with higher inventory stock. Long-term debt and other liabilities increased approximately $2,355,000, or 26.3%. This increase includes approximately $760,000 of revolver proceeds used to pay off the business system lease obligation, resulting in a balance sheet debt reclassification from current to long- term, for that amount. The remainder of the increased borrowings was used for capital expenditures. The increase in shareholders' equity of $1,375,000 is primarily due the profit year-to-date of $1,359,000. The Company has financed its working capital requirements, as well as year-to-date capital expenditures, in part, through operations, with the balance coming from increased bank borrowings. The Company expects that operating activities for the remainder of fiscal year 2000 will provide adequate cash flow to support any working capital requirements, as well as the anticipated additional $1 million of capital expenditures. The Company recently completed negotiations and signed a new three- year unsecured credit agreement with favorable interest terms, which provides for a revolving credit line with a $15,000,000 limit and a maturity date of December 31, 2002. The Company has combined outstanding borrowings and letters of credit against this facility of approximately $5,600,000 as of February 10, 2000. Management believes that this agreement will provide adequate liquidity for the foreseeable future. Expectation for Year 2000 Compliance - ------------------------------------ As noted in the Company's June 30, 1999, 10-K filing, the business is reliant on systems which utilize time-based mechanisms for asset and information management, and management recognizes that such systems may encounter problems affecting the capability thereof due to the year 2000 (Y2K) date change. The Company also has business relationships with vendors, product purchasers, and financial institutions, among others, who are reliant on such systems. It is possible that, given problems encountered by the Company or these parties, the Company could send or receive improper billings, produce products which are unaccounted for, experience production shortages or delays, encounter collection delays, or report inaccurate data, among other things. The Company organized its year 2000 task group during the third quarter of fiscal 1998, with member participation from all operating units, as well as the corporate office. Assessment programs were developed and implemented at each of the locations. The assessment, which included an inventory and identification of the Company's mission critical information technology (IT) systems, as well as non-IT systems (i.e. equipment microcontrollers), was completed. The most significant mission critical elements associated with the IT system area included the necessity to: (1) transition from the AIX operating system version 4.1 to 4.2 and Oracle business application and data-base software version 10.6.1 and 7.1 to the year 2000 compliant Oracle versions 10.7.1 and 7.3, respectively; and (2) receive and install third- party software upgrades used in support of certain manufacturing routines, to include inventory management areas. The Company completed the installation of its new client-server based business information system in April 1998. This system, which runs vendor-provided off-the-shelf business enterprise software (Oracle) in a client-server environment, was installed by the Company as an enhancement to the business, replacing the legacy mainframe system. This system provided the basis for a relatively inexpensive transition to the Y2K-compliant business system through vendor- provided software upgrades. Other third-party-provided customized software critical to the business operation was identified and upgraded with vendor- provided year 2000 compliant modifications. The Company completed the implementation of Y2K compliant operating systems and Oracle software upgrades. All such costs were expensed as incurred. The Company tested its embedded systems used in the manufacture and distribution of its products for year 2000 compliance. Equipment manufacturers were contacted for verification and solutions for potential Y2K issues where mission critical equipment utilizing microcontrollers had been identified. The Company is unaware of any unresolved issues relative to this process. The Company developed contingency plans in the areas that management considered appropriate. Elements of the contingency plans included the capability to manually process customer orders and increase safety stock inventories of critical parts and materials. To date, the Company, to the best of its knowledge, has not experienced any significant issues or interruptions, associated with the arrival of the year 2000. Results of Operations: - --------------------- Thirteen- and twenty-six-week periods ended December 30, 1999, compared with the comparable thirteen- and twenty-six-week periods ended January 2, 1999 ------------------------------------------------------------------ Consolidated sales for the thirteen- and twenty-six-week periods ended December 30, 1999, were $19,247,000 and $38,518,000, respectively, compared with $18,803,000 and $41,181,000 for the comparable periods of a year earlier. This is a 2.4% increase from the prior year quarter and a 6.5% decrease from the prior year-to-date. Sales for the quarter increased $444,000 over the prior year quarter, as a result of improved sales in the Company's power distribution products business, due primarily to a new customer program sales of $1.4 million. This sales increase was partially offset by lower quarterly sales in the Company's electronics business, due to the loss of the Cisco Systems program in January 1999, and lower sales in the Company's aerospace business, due primarily to material shortages experienced in production. The Company continues its efforts to fill the void caused by the loss of the Cisco program, with new programs that will serve the fiber-optic cable power market, magnetic resonance imaging market, and network attached storage systems market. Cost of sales as a percentage of sales for the thirteen- and twenty- six-week periods ended December 30, 1999, were 70.7% and 70.1%, respectively, compared to 72.8% and 73.9% for the comparable periods of the prior year. The improvement in gross margin is primarily attributable to the mix of products shipped during the current year in the Company's power distribution products business (Powerware program), as well as a more profitable mix of product sales in the Company's electronics business, absent Cisco sales. Included in the current quarter and year-to-date costs (cost of sales and general administrative costs combined) was approximately $330,000 and $450,000 of expense, respectively, associated with the start- up phase of the Mexican manufacturing initiative, expected to gradually ramp up over the next quarter. Research and engineering expenses as a percent of net sales for the thirteen- and twenty-six-week periods ended December 30, 1999, were 4.3% and 4.5%, respectively, compared to 4.8% and 4.5%, respectively, for the comparable periods of the prior year. While cost remains relatively constant as a percentage of sales in the year-to-year comparison, actual cost has fallen in excess of $125,000. It is anticipated, with the new program initiatives in both the Company's electronics business and power distribution products business, some additional engineering resources will be required. Selling and administrative costs as a percent of net sales were 19.9% and 18.5% for the thirteen- and twenty-six-week periods ended December 30, 1999, compared to 17.8% and 16.8% for the comparable periods of the prior year. Included, as an offset in the selling and administrative expenses in the current year, is $350,000 of insurance recovery (income), associated with the Company's 1997 municipal landfill settlement. Further, recorded within the selling and administrative costs for the current and prior year is offsetting income of $168,000 (year-to-date) and $348,000 (year-to- date), respectively, related to performance incentives earned in the Company's aerospace business, based upon meeting specified customer delivery schedules. Exclusive of the offsetting income items, selling and administrative expenses have increased approximately $375,000 year-to-date over the prior year's comparable period. Most of these additional expenses related to general and administrative expenses associated with the Mexican start-up operation (in excess of $350,000), coupled with one-time professional fees associated with the Company's new NASDAQ listing. Interest expense as a percent of net sales for the thirteen- and twenty-six-week periods ended December 30, 1999, decreased to .7% from 1.1% for the comparable periods of the prior year. Interest expense for the thirteen- and twenty-six-week periods compared to the prior year same periods decreased $59,000 and $192,000, respectively, as a result of lower debt levels. Income taxes as a percent of income before taxes for the thirteen- and twenty-six-week periods ended December 30, 1999, were 49% and 43%, respectively, compared with 39% for the comparable periods of the prior year. The effective tax rates for the current year are higher than those of the prior year, primarily due to certain Mexican start-up expenses not eligible for future tax offset and, as such, no tax benefit was recognized. Backlog at December 30, 1999, was $11,692,000, compared with $13,798,000 at the end of the comparable period of the prior year. The lower backlog at December 30, 1999, primarily reflects a smaller backlog in the aerospace business, due mainly to production throughput improvements, which have enabled the Division to bring customer programs current, while the pursuit of new programs continues. Portions of the narrative set forth in this Financial Condition and Results of Operations, which are not historical in nature, are forward- looking statements, based upon current expectations, all of which are subject to risk and uncertainties, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. One can identify these forward-looking statements by their use of the words such as "anticipates," "believes," "intends," "budgeted," and other words of similar meaning. The Company's actual performance may differ materially from that contemplated by the forward-looking statements due to a variety of factors, which include, among other things, inaccurate assumptions, the condition of the economy, the condition of the markets that the Company serves, and the success of the Company's strategic plans and contemplated capital investments. The Company does not assume the obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise. PART II OTHER INFORMATION Item 5. Other Information a. Exhibits Interim Report dated January 24, 2000, for the quarter ended December 30, 1999. Exhibit 13 Financial Data Schedule. Exhibit 27 News Release of January 24, 2000, announcing the second quarter results for fiscal year 2000. Exhibit 99 b. There were no reports filed on Form 8-K during the thirteen- week period ended December 30, 1999. 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. ACME ELECTRIC CORPORATION (Registrant) Date: February 14, 2000 /s/ Robert J. McKenna Chairman, President and Chief Executive Officer Date: February 14, 2000 /s/ Michael A. Simon Corporate Controller and Assistant Secretary EX-27 2
5 1,000 6-MOS JUN-30-2000 DEC-30-1999 236 0 11,225 265 11,592 25,038 40,537 25,844 44,508 9,942 8,199 0 0 24,222 (971) 44,508 19,247 19,247 13,614 18,283 0 0 149 815 398 417 0 0 0 417 .08 .08
EX-13 3 EXHIBIT 13 SECOND QUARTER INTERIM REPORT To Our Shareholders: Our earnings continued to improve in the second quarter, and year-to- date are up 47%. However, we expect to see some softening in the second half of the fiscal year, due to timing delays on several new programs, which we now expect will be profit contributors beginning in our new fiscal year. Production was expected to begin in January for the electronic amplifier system we are supplying to Picker Corporation for its new magnetic resonance imaging (MRI) equipment. However, we were recently asked to delay production until July. This will be a terrific new program for us, and we are anxious to fully demonstrate to Picker our full capabilities. We have signed a letter of intent with 3PARdata to develop and manufacture an integrated uninterruptible/custom power system for its large data storage equipment. We expect production to begin in late summer. We are close to signing an agreement with Tachion Networks to manufacturea central office telecommunications switch. Production should start inJune and is expected to yield several million dollars in new business. Last quarter, we shipped the first production units of our newly developed fiber-optic cable power system to Europe. Early feedback has been positive. Field test units of a domestic version were shipped in early January, and we expect the evaluation process to be completed by late spring. Our plans call for full production of both units to begin in July. Progress continues at our start-up operation in Monterrey, Mexico. By the end of March, we will be producing 44 different transformers at this location, and expect our investment to begin contributing to our profitability. Overall, business is good and will be even better once these new initiatives are underway. /s/ Robert J. McKenna Chairman and CEO January 24, 2000 _____________________________________________________________________ ACME ELECTRIC CORPORATION East Aurora, New York The following tables set forth certain unaudited financial information for the twenty-six-week periods ended December 30, 1999, and January 2, 1999 (in thousands, except for per share data): BALANCE SHEET 12/30/99 01/02/99 06/30/99 -------- -------- -------- Current Assets $25,038 $23,103 $22,740 Fixed Assets and Other - Net 19,470 18,417 18,648 ------ ------ ------ Total $44,508 $41,520 $41,388 ====== ====== ====== Current Liabilities $ 9,942 $10,423 $10,552 Long-Term Debt 11,315 11,075 8,960 Shareholders' Equity 23,251 20,022 21,876 ------ ------ ------ Total $44,508 $41,520 $41,388 ====== ====== ====== INCOME STATEMENT 13 Weeks 13 Weeks 26 Weeks 26 Weeks F/Y Ended Ended Ended Ended Ended 12/30/99 1/2/99 12/30/99 1/2/99 6/30/99 -------- ------ -------- ------ ------- Net Sales $19,247 $18,803 $38,518 $41,181 $79,813 Net Income $417 $402 $1,359 $924 $2,707 Net Income Per Common Share Basic $.08 $.08 $.27 $.18 $.53 Diluted $.08 $.08 $.26 $.18 $.53 Weighted Average Number of Shares Outstanding Used to Compute Income Per Common Share: Basic 5,074 5,057 5,073 5,056 5,060 Diluted 5,152 5,088 5,135 5,078 5,091 EX-99 4 EXHIBIT 99 NEWS RELEASE CONTACT: Richard Becht (716) 655-3800 FOR IMMEDIATE RELEASE ACME ELECTRIC CORPORATION REPORTS SECOND QUARTER RESULTS EAST AURORA, N.Y., January 24, 2000 -- Acme Electric Corporation (NASDAQ:ACEE) announced today that for the second quarter ended December 31, 1999, consolidated sales were $19,247,000, with net income of $417,000, or $.08 per diluted share, compared with sales of $18,803,000 with net income of $402,000, or $.08 per diluted share, for the comparable period last year. Sales for the twenty-six-week period ended December 31, 1999, were $38,518,000, with net income of $1,359,000, or $.26 per diluted share, compared with sales of $41,181,000, with net income of $924,000, or $.18 per diluted share, for the comparable period last year. Robert J. McKenna, Chairman and Chief Executive Officer, stated that, "We are very pleased with both our second quarter and first half-year performance. The second half of the year is also expected to be profitable, but delays in the timing of some major programs will reduce sales and earnings in the near term. We expect these orders, first contemplated for the second half of this fiscal year, to materialize in the first half of next fiscal year, beginning July 1." Founded in 1917, Acme Electric Corporation is a leader in the design and manufacture of power conversion equipment for electronic and electrical systems for industrial, commercial, residential, and military and aerospace applications. Corporate headquarters are in East Aurora, N.Y., with operations in Cuba, N.Y., Lumberton, N.C., and Tempe, Ariz. # # # # ACME ELECTRIC CORPORATION Comparative Analysis (in thousands, except per share data) 13 Weeks Ended 26 Weeks Ended 12/31/99 01/02/99 12/31/99 01/02/99 -------- -------- -------- -------- Net Sales $19,247 $18,803 $38,518 $41,181 Net Income $417 $402 $1,359 $924 Net Income Per Common Share Basic $.08 $.08 $.27 $.18 Diluted $.08 $.08 $.26 $.18 Weighted Average Number of Shares Outstanding Used to Compute Income Per Common Share: Basic 5,074 5,057 5,073 5,056 Diluted 5,152 5,088 5,135 5,078 Company news is available by FAX: dial 1-800-758-5804, and input extension 006675; or visit our web site at acmeelec.com -----END PRIVACY-ENHANCED MESSAGE-----