-----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, IDccjpb+kpDpRhdbDEQD34wvjqEL8W9tyrxTKWrfWr9ZC07zEG9YDnoZbcLmV+Qw 2VlykB/PfbBoLZ7thNXdPw== 0000950109-97-006980.txt : 19971117 0000950109-97-006980.hdr.sgml : 19971117 ACCESSION NUMBER: 0000950109-97-006980 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971114 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: KOLLMORGEN CORP CENTRAL INDEX KEY: 0000056583 STANDARD INDUSTRIAL CLASSIFICATION: MOTORS & GENERATORS [3621] IRS NUMBER: 042151861 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-05562 FILM NUMBER: 97721651 BUSINESS ADDRESS: STREET 1: RESERVOIR PL STREET 2: 1601 TRAPELO RD CITY: WALTHAM STATE: MA ZIP: 02154 BUSINESS PHONE: 6178905655 MAIL ADDRESS: STREET 1: RESERVOIR PLACE STREET 2: 1601 TRAPELO ROAD CITY: WALTHAM STATE: MA ZIP: 02154 FORMER COMPANY: FORMER CONFORMED NAME: KOLLMORGEN OPTICAL CORP DATE OF NAME CHANGE: 19670928 10-Q 1 FORM 10-Q FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended September 30, 1997 Commission File No. 1-5562 KOLLMORGEN CORPORATION (Exact name of registrant as specified in its charter) New York 04-2151861 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 1601 Trapelo Road, Waltham, Massachusetts 02154 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (617) 890-5655 NONE (Former name, former address and former fiscal year, if changed since last report.) 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. Yes X No _____ Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Class Outstanding at November 10, 1997 Common Stock, $2.50 par value 10,013,871 shares 2 KOLLMORGEN CORPORATION INDEX Page No. PART I - Financial Information Consolidated Statements of Operations for 3-4 the Three Months and Nine Months Ended September 30, 1997 and 1996 (unaudited) Consolidated Balance Sheets as of 5 September 30, 1997 (unaudited) and December 31, 1996 Consolidated Statements of Cash Flows 6-7 for the Nine Months Ended September 30, 1997 and 1996 (unaudited) Notes to Consolidated Financial Statements 8-10 Management's Discussion and Analysis of Financial 11-14 Condition and Results of Operations PART II - Other Information 14 3 PART I - FINANCIAL INFORMATION KOLLMORGEN CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations (In thousands, except per share amounts) (unaudited)
For the For the Three Months Ended Nine Months Ended September 30, September 30, ------------------- ----------------- 1997 1996 1997 1996 --------- --------- --------- --------- Net sales $ 56,710 $ 52,830 $163,054 $169,658 Cost of sales 39,870 35,305 113,590 112,749 --------- --------- --------- --------- Gross profit 16,840 17,525 49,464 56,909 --------- --------- --------- --------- Selling and marketing expense 4,982 6,576 15,003 20,601 General and administrative expense 5,845 5,708 17,412 18,256 Research and development expense 2,963 2,670 7,249 9,024 Acquired research and development 0 0 11,391 0 --------- --------- --------- --------- Income (loss) from operations 3,050 2,571 (1,591) 9,028 --------- --------- --------- --------- Interest (expense) (856) (1,389) (3,915) (4,192) Interest income 236 95 464 386 Other 339 367 583 41 --------- --------- --------- --------- Income (loss) before income taxes, minority interest, and joint venture2,769 1,644 (4,459) 5,263 Provision for income taxes 800 0 1,978 0 --------- --------- --------- --------- Income (loss) before minority interest and joint venture 1,969 1,644 (6,437) 5,263 Minority interest 98 160 222 418 Joint venture: Equity in earnings 0 0 1,430 0 Gain on sale of investment, net of income taxes 0 0 24,321 0 --------- --------- --------- --------- Net income $ 2,067 $ 1,804 $ 19,536 $ 5,681 ========= ========= ========= ========= 4 Earnings per common share: Primary $ 0.20 $ 0.18 $ 1.90 $ 0.54 ========= ========= ========= ========= Fully diluted $ 0.20 $ 0.18 $ 1.87 $ 0.54 ========= ========= ========= ========= Weighted average number of shares used in calculating earnings per common share: Primary 10,464,56710,044,000 10,290,920 10,036,000 ==================== ========== ========== Fully diluted 10,512,99010,056,000 10,443,892 10,082,000 ==================== ========== ========== See accompanying notes to consolidated financial statements
5 KOLLMORGEN CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets (In thousands)
ASSETS September 30, 1997 December 31, (unaudited) 1996 ---------- ---------- Current assets: Cash and cash equivalents $ 17,881 $ 13,445 Accounts receivable (net of reserve of $861 in 1997 and $772 in 1996) 41,367 43,189 Recoverable amounts on long-term contracts 4,721 4,973 Inventories 25,486 22,450 Prepaid expenses and other current assets 1,664 1,645 --------- --------- Total current assets 91,119 85,702 --------- --------- Property, plant and equipment, net 26,006 25,147 Goodwill and other intangible assets 14,483 4,502 Investment in joint venture 0 12,720 Other assets 10,536 13,259 --------- --------- $ 142,144 $ 141,330 ========= ========= LIABILITIES and SHAREHOLDERS' EQUITY Current liabilities: Notes payable to banks $ 11,137 $ 5,545 Current portion of long-term debt 2,016 6,942 Accounts payable 18,734 21,765 Accrued liabilities 31,025 26,756 --------- --------- Total current liabilities 62,912 61,008 --------- --------- Long-term debt 31,622 53,054 Other liabilities 5,627 5,202 Minority interest 72 287 Common shareholders' equity: Common stock 26,919 26,914 Additional paid-in capital 12,768 13,166 Retained earnings (accumulated deficit) 9,284 (10,054) Cumulative translation adjustments (84) 791 Less common stock in treasury, at cost (6,976) (9,038) --------- --------- Total common shareholders' equity 41,911 21,779 --------- --------- $ 142,144 $ 141,330 ========= ========= See accompanying notes to consolidated financial statements.
6 KOLLMORGEN CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows (Dollars in thousands) (unaudited)
For the Nine Months Ended September 30, ------------------ 1997 1996 ---------- ---------- Cash flows from operating activities: Net income from operations $ 19,536 $ 5,681 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 3,521 4,569 Amortization 833 798 Acquired R&D 11,391 0 (Gain) loss on sale of assets (24,403) 211 Equity in income of joint venture (1,430) 0 Minority interest (215) (418) Other non-cash expenses 32 34 Changes in assets and liabilities: Accounts and notes receivable 3,520 (40) Recoverable amounts on long-term contracts 252 5,606 Inventories (817) (2,855) Prepaid expenses (33) (466) Accounts payable and accrued liabilities (9,395) (7,219) Deferred income taxes and other expenses 199 (671) Other 79 28 --------- --------- Net cash provided by operations 3,070 5,258 --------- --------- Cash flows from investing activities: Capital expenditures (4,266) (3,828) Proceeds from sale of assets 0 2,930 Proceeds from sale of investment in joint venture 41,396 0 Acquisitions of Servotronix and Seidel (15,772) 0 Cash of subsidiaries acquired 626 97 Equity investments (75) (1,404) Long term notes receivable (net of repayments) 262 396 --------- --------- Net cash provided by (used in) investing activities 22,171 (1,809) --------- --------- 7 Cash flows from financing activities: Borrowings under credit lines 12,539 1,216 Repayments of credit lines (7,225) 0 Principal repayment on other notes 0 (1,916) Common stock issued from treasury 1,078 312 Redemption of preferred stock 0 (25,506) Principal payments on capital lease obligations (55) (80) Borrowings of long-term debt 100 25,000 Repayments of long-term debt (26,525) (5,219) Dividends paid on common and preferred stock (590) (874) --------- --------- Net cash used in financing activities (20,678) (7,067) --------- --------- Effect of exchange rate changes on cash (127) (75) --------- --------- Net increase (decrease) in cash and cash equivalents 4,436 (3,693) Cash and cash equivalents at beginning of period 13,445 17,789 --------- --------- Cash and cash equivalents at end of period $ 17,881 $ 14,096 ========= ========= SUPPLEMENTAL CASH FLOW INFORMATION Cash paid during the period for: Interest $ 3,075 $ 3,278 Income taxes (net of refunds) 5,115 703 See accompanying notes to consolidated financial statements.
8 KOLLMORGEN CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements September 30, 1997 1. The accompanying unaudited consolidated financial statements include the accounts of Kollmorgen Corporation (the "Company") and all of its majority owned subsidiaries. 2. In the opinion of management, the unaudited consolidated financial statements included herein contain all adjustments, consisting only of normal recurring adjustments, (except for the charge for acquired research and development, and the gain on sale of joint venture interest), necessary to present fairly the Company s and its consolidated subsidiaries financial condition at September 30, 1997, the results of operations for the three-month and nine-month periods ended September 30, 1997 and 1996 and the cash flows for the nine- month periods ended September 30, 1997 and 1996. Certain reclassifications have been made to the prior year's financial statements to conform to 1997 classifications. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. See Management s Discussion and Analysis of Financial Condition and Results of Operations for additional information. These interim financial statements should be read in conjunction with the Company s Annual Report on Form 10-K for the year ended December 31, 1996. 3. Effective December 31, 1996, the Company combined its Macbeth division with the Color Control Systems business of Gretag AG and received 48% of the shares in the Swiss holding company which controls the two businesses (the Joint Venture ). Accordingly, at December 31, 1996, and through the second quarter of 1997, the Macbeth division is not consolidated in the accompanying financial statements, but instead the Company accounted for its interest in the Joint Venture using the equity method. Effective June 17, 1997, the Company agreed, pursuant to a firm underwriting agreement, to sell approximately 88% of its interest in the Joint Venture as part of an initial public offering on the Swiss stock exchange. On June 25, 1997 the Company sold approximately 88% of its interest in the Joint Venture, receiving approximately $38 million. Subsequently in August, 1997, the Company sold the remaining shares to the underwriter, receiving approximately $4.0 million in cash. The accompanying financial statements reflect a gain in the second quarter of 1997 of approximately $24 million on the sale of its shares in the Joint Venture. The gain is net of $2 million in income taxes and utilization of net operating loss and other tax credit carryforwards. Refer to Note 2 of the 1996 financial statements contained in the Company s Annual Report on Form 10-K for the year ended December 31, 1996 for additional information. 9 4. Inventories (in thousands) consist of the following: September 30, December 31, 1997 1996 ------------- ------------ Raw materials $ 13,906 $11,816 Work in process 7,736 8,118 Finished goods 3,844 2,516 -------- -------- $ 25,486 $ 22,450 ======== ======== 5. The Financial Accounting Standards Board issued Statement No. 128 ( SFAS 128 ), Earnings per Share, which requires the presentation of basic and diluted earnings per share (EPS). Basic EPS excludes the dilutive effect of common equivalent securities and is computed by dividing income available to common shareholders by the weighted- average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. Basic EPS replaces primary EPS. Diluted EPS is computed similarly to fully diluted EPS under the existing rules found in APB Opinion No. 15, "Earnings per Share." The Company will adopt SFAS 128 as of December 31, 1997, and upon adoption, will restate all prior period EPS data presented. Basic EPS calculated under the provisions of SFAS 128 would have been as follows: For the For the Three Months Ended Nine Months Ended September 30, September 30, ------------------ ----------------- 1997 1996 1997 1996 ------- ------- ------- ------- Earnings per common share: Basic $ 0.21 $ 0.19 $ 1.99 $ 0.55 Diluted $ 0.20 $ 0.18 $ 1.90 $ 0.54 6. Effective April 2, 1997, the Company agreed to purchase all of the remaining shares of Servotronix Ltd. ("Servotronix") for cash of $6.4 million and through the issuance of 257,522 shares of the Company s common stock. The shares not yet purchased are a liability of the Company in the amount of $1.8 million at September 30, 1997. Accordingly, the Company has accounted for the purchase of Servotronix as if 100% of the shares were purchased on April 2, 1997. 7. Effective June 10, 1997, the Company entered into a binding agreement to purchase all of the shares of Fritz A. Seidel Elektro-Automatik GmbH ( Seidel ). Accordingly, the Company consolidated the balance sheet of Seidel as of June 30, 1997. The Company funded the purchase on August 12, 1997 by borrowing $8.8 million under a line of credit with a German bank. Effective in the third quarter of 1997, the results of operations for Seidel are consolidated in the accompanying financial statements. 10 8. In connection with the acquisitions of Servotronix and Seidel, the Company has allocated the purchase price to the assets acquired, both tangible and intangible, and any excess of the purchase price over the assets acquired has been classified as goodwill. A portion of the purchase price has been allocated to in-process research and development for products which are not yet feasible and the value of the in-process research and development of $10.5 million was expensed as Acquired research and development in the second quarter of 1997. Also included in acquired research and development was a charge of approximately $0.9 million for technology acquired unrelated to the Servotronix and Seidel acquisitions. 9. The Company will adopt Statement of Financial Accounting Standards No. 130, Reporting Comprehensive Income ( SFAS 130 ) in fiscal year ending December 31, 1998. SFAS No. 130 established standards for reporting the display of comprehensive income and its components in a full set of general-purpose financial statements. Management has not determined the effect of adopting SFAS No. 130. 10. The Company will adopt Statement of Financial Accounting Standards No. 131, Disclosures About Segments of an Enterprise and Related Information ( SFAS 131 ) in fiscal year ending December 31, 1998. SFAS No. 131 specifies revised guidelines for determining an entity s operating segments and the type and level of financial information to be disclosed. Management has not determined the effect of adopting SFAS No. 131. 11 Management's Discussion and Analysis of Financial Condition and Results of Operations RESULTS OF OPERATIONS In the first quarter of 1996 the Company sold a significant portion of its instrumentation business located in France. Effective December 31, 1996 the Company combined its Macbeth division with the Color Control Systems business of Gretag AG and received 48% of the shares in the Swiss holding company which controls the two businesses (the Joint Venture ). Accordingly, through the period ended June 30, 1997, the Company accounted for its interest in the Joint Venture using the equity method. On June 25, 1997, the Company sold approximately 88% of its interest in the Joint Venture as part of the Joint Venture s initial public offering on the Swiss Stock Exchange. The Company sold its remaining interest in the JV in August, 1997, receiving approximately the book value of the investment. For comparative purposes, both the French instrumentation business and the Joint Venture will be referred to as the Businesses Divested . The Businesses Divested represented a significant portion of the Company s Electro-Optical Instruments segment which had been discussed separately from the Company s motion technology segment in the prior year. Since meaningful comparative information cannot be presented for the Electro-Optical Instruments segment, the Company has discontinued segment discussion. Revenues increased $3.9 million or 7.3% for the three months ended September 30, 1997 as compared to the same period a year ago. Excluding the Businesses Divested, third quarter revenues increased $11.3 million or 24.8% as compared to the third quarter of 1996. Revenues declined $6.6 million or 3.9% for the first nine months of 1997 as compared to the same period a year ago. Excluding the Businesses Divested, revenues increased $17.1 million or 11.7% as compared to the first nine months of 1996. The increase includes the additional revenue in connection with the Servotronix and Seidel acquisitions. Additionally, the increase reflects the Company s High Volume business, which manufactures fractional horsepower motors. This business had a significant increase in its 1997 revenues as compared to 1996 as a result of increased production under volume commitments from its customers. The increase also reflects the Company s engineering consulting business, Proto-Power, which has seen strong demand for its compliance services to the utility industry. These increases more than offset a decline in revenues at the Company s aerospace and defense businesses which was principally a result of a weakening in the value of the dollar to the French franc, and a decrease in revenues recognized on long term military contracts. Gross margin as a percent of sales declined in the third quarter of 1997 as compared to the same period in 1996 from 33.2% to 29.7%. Excluding the Businesses Divested, gross margin was approximately 30.1% for the third quarter of 1996. For the nine months ended, gross margin as a percent of sales declined in 1997 compared to 1996 from 33.5% to 30.3%. Excluding the Businesses Divested, gross margin declined slightly from 30.8% to 30.3%. Sales and marketing expenses declined $1.6 million in the third quarter of 1997 as compared to the third quarter of 1996. When the Businesses Divested are excluded, the result is an increase of $0.4 12 million and a decrease as a percentage of sales from 10.2% in the third quarter of 1996 to 8.8% in the third quarter of 1997. Sales and marketing expenses declined $5.6 million in the nine months of 1997 as compared to the same period in the prior year. When the Businesses Divested are excluded, the result is an increase of $0.6 million and a decline as a percentage of sales from 9.8% for the first nine months of 1996 to 9.2% for the first nine months of 1997. The decline of sales and marketing expenses as a percentage of sales reflects benefits due to the reorganization at the Company's domestic commercial motion technology sales channels. General and administrative expenses increased $100 thousand in the third quarter of 1997 as compared to the third quarter of 1996. As a percentage of sales, general and administrative expenses declined from 10.8% in 1996 to 10.3% in 1997. Excluding the Businesses Divested, general and administrative expenses as a percentage of sales for the third quarter decreased from 11.6% in 1996 to 10.3% in 1997. For the nine months ended September 30, 1997, general and administrative expenses declined by $0.8 million compared to the prior year. When the Businesses Divested are excluded, general and administrative expense increased $0.9 million or 5.5%, but declined as a percentage of sales for the first nine months of 1996 from 11.3% to 10.7% for the same period in 1997. Research and development expenses increased in the third quarter by $0.3 million. Excluding the Businesses Divested, research and development expense increased by $1.0 million for the third quarter and increased as a percentage of sales from 4.3% in 1996 to 5.2% in 1997. For the nine months ended September 30, 1997, research and development expense decreased $1.8 million compared to 1996 and declined as a percent of sales from 5.3% in 1996 to 4.4% in 1997. Excluding the Businesses Divested for the nine months, research and development expense increased by $0.8 million, and remained consistent as a percentage of sales at 4.4% As described in Note 8 to these quarterly Financial Statements, in the second quarter of 1997 the Company incurred a charge of $11.4 million in connection with acquired research and development, principally relating to the two acquisitions completed in that quarter. The Company reported income from operations of $3.1 million and $2.6 million for the three month periods ended September 30, 1997 and September 30, 1996, respectively. As a result of the charge for acquired research and development, the Company reported a loss from operations of $1.6 million for the nine months ended September 30, 1997 compared to income from operations of $9.0 million for the same period in the prior year. Excluding the impact of the charge for acquired research and development, income from operations for the nine months ended September 30, 1997 increased 8.6% to $9.8 million compared with the same period of 1996. Interest expense decreased 38.4% and 6.6% for the three and nine month periods ended September 30, 1997, as compared to the same periods in 1996 due to the decrease in the overall debt level of the Company. On June 30, 1997, the Company repaid the remaining balance of approximately $21.1 million of its term loan used to finance the redemption of the Company s preferred stock in February 1996. Accordingly, the Company 13 expects interest expense to be at the reduced levels for the balance of the year compared to the comparable period in 1996. In 1996 the Company had a zero tax rate which reflected the utilization of net operating loss carryforwards and other tax credits. Primarily as a result of the divestiture of the Macbeth division, the Company s tax credit carryforwards have been utilized. Therefore, the Company has used a blended tax rate on its worldwide income of approximately 28% for 1997. This tax rate was applied to the Company s income before the impact of the charge for acquired research and development as this charge is not deductible for tax purposes. Additionally, the rate does not include the gain on the sale of its interest in the Joint Venture which is shown net of taxes. The Company s 48% share of the after-tax profits of the Joint Venture was $0.8 million for the first quarter of 1997, and $1.4 million for the first half of 1997. The results of the Company s Macbeth division were consolidated in the Company s results in 1996. Bookings increased $15.5 million or 11.1% during the first three quarters of 1997 as compared to the same period in the prior year (excluding the Businesses Divested). The increase reflects improved bookings for the Company s High Volume business, its engineering consulting services and the additional bookings of recent acquisitions. LIQUIDITY AND CAPITAL RESOURCES The Company s cash and cash equivalents increased $4.4 million during the first nine months of 1997. Net cash provided by operating activities generated $3.1 million. Accounts receivable generated $3.5 million in cash during the first three quarters of 1997 reflecting strong collections and a reduction in days sales outstanding. Inventories, recoverable amounts under long term contracts, and prepaid expenses used $0.6 million in cash during the first nine months of 1997. Accounts payable and accrued liabilities used $9.4 million in cash. The use of cash was due to income tax payments of $5.1 million, a $1.5 million payment for the refinancing of a building lease on more favorable terms to the Company, and scheduled payments made in early 1997. The Company recently entered into a five-year $50 million unsecured credit facility. Borrowings under the agreement bear interest at the bank's prime lending rate or the bank's Eurodollar rate plus the current margin of .75%. The margin varies based on a financial ratio of the Company. This facility replaces a $45 million fully secured arrangement. Investing activities provided $22.2 million in cash during the first nine months of 1997. The Company received proceeds of approximately $41.4 million from the sale of the majority of its interest in the Joint Venture. In connection with the acquisition of Servotronix, the Company paid $6.4 million. The Company funded the acquisition of Seidel for $9.3 million during the third quarter through a combination of debt and cash. 14 Financing activities used $20.7 million in cash principally to repay the remaining balance of its term loan using the proceeds of the sale of a portion of its interest in the Joint Venture. The Company believes that it has sufficient working capital and available borrowing under its line of credit to finance its cash requirements for capital expenditures, sinking fund payments, and working capital needs for the next twelve months. This filing contains forward-looking statements which involve risks and uncertainties. The Company s actual results may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such a difference are set forth in the Company s Form 8-K dated January 27, 1997. PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (a) Exhibits -- Listed below are the exhibits filed with this report. Exhibit 10(A) Kollmorgen Deferred Compensation Plan Exhibit 10(B) Fifth Amended and Restated Multicurrency Credit Agreement dated as of September 30, 1997 Exhibit 11 Statement re computation of per share earnings Exhibit 27 Financial Data Schedules (b) Reports on Form 8-K. On August 18, 1997, the Company filed a current report on Form 8-K reporting the issuance of 86,522 shares of its Common Stock, $2.50 par value, ("Common Stock") in connection with the Servotronix acquisition. 15 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has caused this report to be signed on its behalf by the undersigned thereunto duly authorized. KOLLMORGEN CORPORATION By: /s/ Robert J. Cobuzzi Robert J. Cobuzzi, Senior Vice President, Treasurer and Chief Financial Officer Date: November 14, 1997 EX-11 2 EXHIBIT 11 Exhibit 11 KOLLMORGEN CORPORATION COMPUTATION OF PER SHARE EARNINGS (Amounts in thousands, except share and per share amounts) (unaudited)
For the For the Three Months Ended Nine Months Ended September 30, September 30, --------------------- ---------------------- 1997 1996 1997 1996 ---------- ---------- ---------- ---------- Net income $ 2,067 $ 1,804 $ 19,536 $ 5,681 Less preferred stock dividends and accretion of discount 0 0 0 (285) ---------- ---------- ---------- ---------- Earnings applicable to primary common shares 2,067 1,804 19,536 5,396 Number of shares: Weighted average number of shares outstanding - Primary 10,464,567 10,044,000 10,290,920 10,036,000 Weighted average number of of shares outstanding - Fully diluted 10,512,990 10,056,000 10,443,892 10,082,000 ---------- ---------- ---------- ---------- Earnings per common share: Primary $ 0.20 $ 0.18 $ 1.90 $ 0.54 ======== ======== ======== ======== Fully diluted $ 0.20 $ 0.18 $ 1.87 $ 0.54 ======== ======== ======== ======== See accompanying notes to consolidated financial statements.
EX-27 3 FINANCIAL DATA SCHEDULE
5 KOLLMORGEN CORPORATION AND SUBSIDIARIES EXHIBIT 27 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED BALANCE SHEET AND STATEMENT OF OPERATIONS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS 1,000 9-MOS DEC-31-1997 JAN-01-1997 SEP-30-1997 17,881 0 41,367 861 25,486 91,119 100,231 74,225 142,144 62,912 34,840 26,919 0 0 14,992 142,144 141,712 163,054 99,598 113,590 51,005 0 3,915 (2,807) 1,978 (4,785) 0 24,321 0 19,536 1.90 1.87
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