þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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75-1225149
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(State of Incorporation)
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(IRS Employer Identification No.)
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905 E. Walnut, Garland, Texas
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75040
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(Address of Principal Executive Office)
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(Zip Code)
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Registrant’s Telephone Number, including Area Code
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(972) 272-3571
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Large accelerated filer o
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Accelerated filer o
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Non-accelerated filero
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Smaller reporting company x
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PART I-FINANCIAL INFORMATION
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ITEM 1 - FINANCIAL STATEMENTS
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Condensed Balance Sheets as of May 26, 2012 (unaudited) and November 30, 2011
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Condensed Statements of Operations for the three and six months ended May 26, 2012 and May 28, 2011 (unaudited)
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Condensed Statements of Cash Flows for the six months ended May 26, 2012 and May 28, 2011 (unaudited)
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Notes to Condensed Financial Statements (unaudited)
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ITEM 2 - MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
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ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
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ITEM 4 - CONTROLS AND PROCEDURES
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PART II-OTHER INFORMATION
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ITEM 1 - LEGAL PROCEEDINGS
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ITEM 1A -RISK FACTORS
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ITEM 2 - UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
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ITEM 3 - DEFAULTS UPON SENIOR SECURITIES
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ITEM 4 - MINE SAFETY DISCLOSURE
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ITEM 5 - OTHER INFORMATION
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ITEM 6 - EXHIBITS
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SIGNATURES
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CURRENT ASSETS
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05/26/12
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11/30/11
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||||||
(Unaudited)
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||||||||
Cash and cash equivalents
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$ | 7,404 | $ | 8,488 | ||||
Short-term investment
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2,003 | 2,000 | ||||||
Accounts receivable
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2,430 | 1,911 | ||||||
Inventories:
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||||||||
Raw materials
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2,825 | 2,803 | ||||||
Work-in process
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2,570 | 2,475 | ||||||
Total inventories
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5,395 | 5,278 | ||||||
Prepaid expenses and other current assets
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114 | 145 | ||||||
Prepaid income tax
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432 | 474 | ||||||
Deferred income tax
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720 | 720 | ||||||
Total current assets
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18,498 | 19,016 | ||||||
PROPERTY, PLANT AND EQUIPMENT, at cost:
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||||||||
Land
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80 | 80 | ||||||
Buildings
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498 | 498 | ||||||
Facility improvements
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1,059 | 1,059 | ||||||
Machinery and equipment
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7,610 | 7,526 | ||||||
Furniture and fixtures
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672 | 672 | ||||||
Total property, plant, and equipment
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9,919 | 9,835 | ||||||
Less accumulated depreciation
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(8,067 | ) | (7,901 | ) | ||||
Net property, plant, and equipment
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1,852 | 1,934 | ||||||
Total assets
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$ | 20,350 | $ | 20,950 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
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||||||||
CURRENT LIABILITIES:
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Accounts payable
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$ | 391 | $ | 359 | ||||
Accrued compensation
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388 | 570 | ||||||
Other accrued liabilities
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387 | 471 | ||||||
Deferred revenue
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39 | 175 | ||||||
Income taxes payable
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36 | 98 | ||||||
Total current liabilities
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1,241 | 1,673 | ||||||
DEFERRED INCOME TAXES
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420 | 420 | ||||||
SHAREHOLDERS’ EQUITY
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||||||||
Common stock, ($.10 par value), authorized 10,000,000 shares,
3,078,315 issued and 2,578,315 outstanding at May 26, 2012
and November 30, 2011
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308 | 308 | ||||||
Paid-in capital
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885 | 885 | ||||||
Treasury stock, 500,000 shares, at cost
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(1,250 | ) | (1,250 | ) | ||||
Retained earnings
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18,746 | 18,914 | ||||||
Total shareholders’ equity
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18,689 | 18,857 | ||||||
Total liabilities and shareholders’ equity
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$ | 20,350 | $ | 20,950 |
Three months ended
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Six months ended
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05/26/12
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05/28/11
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05/26/12
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05/28/11
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NET SALES
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$ | 4,098 | $ | 5,437 | $ | 7,812 | $ | 11,027 | ||||||||
COST AND EXPENSES:
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Cost of goods sold
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(3,054 | ) | (3,529 | ) | (5,659 | ) | (6,931 | ) | ||||||||
Research and development
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(81 | ) | (246 | ) | (203 | ) | (395 | ) | ||||||||
Selling, general & administrative expenses
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(947 | ) | (978 | ) | (1,815 | ) | (1,958 | ) | ||||||||
Total cost and expenses
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(4,082 | ) | (4,753 | ) | (7,677 | ) | (9,284 | ) | ||||||||
OPERATING INCOME BEFORE INTEREST,OTHER INCOME AND INCOME TAXES
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16 | 684 | 135 | 1,743 | ||||||||||||
Interest and other income
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3 | 7 | 6 | 7 | ||||||||||||
INCOME BEFORE TAXES
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$ | 19 | $ | 691 8 | $ | 141 | $ | 1,750 | ||||||||
Provision for taxes
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(7 | ) | (249 | ) | (51 | ) | (630 | ) | ||||||||
NET INCOME
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$ | 12 | $ | 442 | $ | 90 | $ | 1,120 | ||||||||
NET INCOME PER SHARE, BASIC AND DILUTED
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$ | - | $ | .17 | $ | .03 | $ | .43 | ||||||||
DIVIDENDS PER SHARE
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$ | - | $ | - | $ | .10 | $ | .10 | ||||||||
WEIGHTED AVERAGE OF SHARES, Basic and diluted
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2,578,315 | 2,578,315 | 2,578,315 | 2,578,315 |
Six months ended
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5/26/12
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5/28/11
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CASH FLOWS FROM OPERATING ACTIVITIES:
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Net income
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$ | 90 | $ | 1,120 | ||||
Adjustments to reconcile net income to
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net cash provided by (used in) operating activities:
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Depreciation
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166 | 148 | ||||||
Changes in certain current assets and liabilities
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(Increase) decrease in accounts receivable
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(519 | ) | 933 | |||||
(Increase) decrease in inventories
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(117 | ) | 5 | |||||
Decrease in prepaid expense and other current assets
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73 | 8 | ||||||
Decrease in deferred revenue
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(136 | ) | (676 | ) | ||||
Increase in accounts payable
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32 | 87 | ||||||
Decrease in accrued compensation
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(182 | ) | (241 | ) | ||||
Decrease in other accrued liabilities
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(84 | ) | (128 | ) | ||||
Decrease in income taxes payable
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(62 | ) | (64 | ) | ||||
Net cash provided by (used in) operating activities
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(739 | ) | 1,192 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES:
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Purchase of short term investments
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(3 | ) | (1,000 | ) | ||||
Additions to property, plant and equipment
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(84 | ) | (682 | ) | ||||
Net cash used in investing activities
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(87 | ) | (1,682 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES
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Cash dividend
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(258 | ) | (258 | ) | ||||
Net cash used in financing activities
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(258 | ) | (258 | ) | ||||
Net change in cash and cash equivalents
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(1,084 | ) | (748 | ) | ||||
Cash and cash equivalents at beginning of period
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8,488 | 9,085 | ||||||
Cash and cash equivalents at end of period
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$ | 7,404 | $ | 8,337 | ||||
Supplemental Cash Flow Disclosure:
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Cash paid for income taxes | $ | 69 | $ | 694 |
Buildings
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15
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Facility improvements
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8-15
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Machinery and equipment
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5-10
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Furniture and fixtures
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5-8
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Three months ended
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Six months ended
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5/26/2012
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5/28/2011
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5/26/2012
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5/28/2011
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NET SALES
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100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
COST AND EXPENSES:
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Cost of Goods Sold
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74.5 | % | 64.9 | % | 72.5 | % | 62.9 | % | ||||||||
Research and development
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2.0 | % | 4.5 | % | 2.6 | % | 3.5 | % | ||||||||
Selling, general & administrative expenses
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23.1 | % | 18.0 | % | 23.2 | % | 17.8 | % | ||||||||
Total cost and expenses
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99.6 | % | 87.4 | % | 98.3 | % | 84.2 | % | ||||||||
OPERATING INCOME BEFORE INTEREST
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.4 | % | 12.6 | % | 1.7 | % | 15.8 | % | ||||||||
AND INCOME TAXES
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Interest income
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.1 | % | .1 | % | .1 | % | .1 | % | ||||||||
INCOME BEFORE TAXES
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.5 | % | 12.7 | % | 1.8 | % | 15.9 | % | ||||||||
Provision for taxes
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.2 | % | 4.6 | % | .6 | % | 5.7 | % | ||||||||
NET INCOME
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.3 | % | 8.1 | % | 1.2 | % | 10.2 | % |
(a)
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Evaluation of disclosure controls and procedures.
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(b)
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Changes in internal controls.
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31.1
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Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes- Oxley Act of 2002
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31.2
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Certification of Chief Accounting Officer pursuant to Section 302 of the Sarbanes- Oxley Act of 2002
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32.1
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Certification of Chief Executive Officer pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley act of 2002.
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32.2
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Certification of Chief Accounting Officer pursuant to 18 U. S. C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley act of 2002.
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101 | Interactive data files pursuant to Rule 405 of Regulation S-T. |
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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 duly authorized.
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July 10, 2012
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/s/ Mark King |
Date
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Mark King
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Chief Executive Officer
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July 10, 2012
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/s/ Patrick Cefalu |
Date | Patrick Cefalu |
Chief Financial Officer |
1.
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I have reviewed this quarterly report of Micropac Industries, Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a.
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b.
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c.
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d.
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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a.
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b.
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Dated: July 10, 2012 | /s/ Mark King |
Mark King | |
Chief Executive Officer | |
(Principal Executive Officer) |
1.
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I have reviewed this quarterly report of Micropac Industries, Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a.
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b.
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c.
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d.
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b.
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Dated: July 10, 2012 | /s/ Patrick S. Cefalu |
Patrick S. Cefalu | |
Executive Vice President | |
and Chief Financial Officer | |
(Principal Accounting Officer) |
1.
|
The Quarterly Report on Form 10-q for the period ended May 26, 2012 (the “Form 10-Q”) of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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2.
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The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Dated: July 10, 2012 | /s/ Mark King |
Mark King | |
Chief Executive Officer | |
(Principal Executive Officer) |
1.
|
The Quarterly Report on Form 10-Q for the period ended May 26, 2012 (the “Form 10-Q”) of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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2.
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The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Dated: July 10, 2012 | /s/ Patrick S. Cefalu |
Patrick S. Cefalu | |
Executive Vice President | |
and Chief Financial Officer | |
(Principal Accounting Officer) |
RELATED PARTIES
|
6 Months Ended |
---|---|
May 26, 2012
|
|
RELATED PARTIES | |
RELATED PARTIES | Note 4 RELATED PARTIES
Mr. Eugene Robinson, a director and member of the Companys audit committee, provides advisory services to the Company. Mr. Robinson was paid $1,800 in advisory services fees in the second quarter of 2012 and 2011. |
FAIR VALUE MEASUREMENT
|
6 Months Ended |
---|---|
May 26, 2012
|
|
FAIR VALUE MEASUREMENT | |
FAIR VALUE MEASUREMENT | Note 3 FAIR VALUE MEASUREMENT
The Company had no financial assets and liabilities measured at fair value on a recurring basis as of May 26, 2012 and November 30, 2011. The fair value of financial instruments such as cash and cash equivalents, short term investments, accounts receivable, and accounts payable approximate their carrying amount based on the short maturity of these instruments. There were no nonfinancial assets measured at fair value on a nonrecurring basis at May 26, 2012 and November 30, 2011. |
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BASIS OF PRESENTATION
|
6 Months Ended |
---|---|
May 26, 2012
|
|
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | Note 1 BASIS OF PRESENTATION
Business Description
Micropac Industries, Inc. (the Company), a Delaware corporation, manufactures and distributes various types of hybrid microelectronic circuits, solid state relays, power operational amplifiers, and optoelectronic components and assemblies. The Companys products are used as components in a broad range of military, space and industrial systems, including aircraft instrumentation and navigation systems, power supplies, electronic controls, computers, medical devices, and high-temperature (200o C) products. The Companys products are either custom (being application specific circuits designed and manufactured to meet the particular requirements of a single customer) or standard, proprietary components such as catalog items.
The Companys facilities are certified and qualified by Defense Logistics Agency (DLA) to MIL-PRF-38534 (class K-space level), MIL-PRF-19500 JANS (space level), and MIL-PRF-28750 (class K-space level) and is certified to ISO 9001-2002. Micropac is a NASA core supplier, and is registered to AS9100-Aerospace Industry standard for supplier certification.
The Companys core technology is the packaging and interconnecting of miniature electronic components, utilizing thick film and thin film substrates, and forming microelectronics circuits. Other technologies include light emitting and light sensitive materials and products, including light emitting diodes and silicon phototransistors used in the Companys optoelectronic components and assemblies.
In the opinion of management, the unaudited financial statements include all adjustments (consisting of only normal, recurring adjustments) necessary to present fairly the financial position as of May 26, 2012, the results of operations for the three months and six months ended May 26, 2012 and May 28, 2011, and the cash flows for the six months ended May 26, 2012 and May 28, 2011. Unaudited financial statements are prepared on a basis substantially consistent with those audited for the year ended November 30, 2011. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations promulgated by the Securities and Exchange Commission. However, management believes that the disclosures contained are adequate to make the information presented not misleading. |
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SIGNIFICANT ACCOUNTING POLICIES
|
6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
May 26, 2012
|
|||||||||
SIGNIFICANT ACCOUNTING POLICIES | |||||||||
SIGNIFICANT ACCOUNTING POLICIES | Note 2 SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the reporting period. Actual results could differ from those estimates.
Revenue Recognition
Revenues are recorded as shipments are made based upon contract prices. Any losses anticipated on fixed price contracts are provided for currently. Sales are recorded net of sales returns, allowances and discounts.
The Company recognizes revenue in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Subtopic 605-10-S99, Revenue Recognition (ASC 605-10-S99). ASC 605-10-S99 requires that four basic criteria must be met before revenues can be recognized: (1) persuasive evidence of an arrangement exists; (2) shipment has occurred or services have been rendered; (3) the fee is fixed and determinable; and (4) collectibility is reasonably assured.
Deferred revenue represents prepayments from customers and will be recognized as revenue when the products are shipped per the terms of the contract.
Short-Term Investments
The Company has $2,003,000 in short term investments at May 26, 2012. Short-term investments consist of certificates of deposit with maturities greater than 90 days. These investments are reported at historical cost, which approximates fair value. All highly liquid investments with maturities of 90 days or less are classified as cash equivalents. All short-term investments are securities which the Company has the ability and intent to hold to maturity and mature within one year.
Inventories
Inventories are stated at lower of cost or market value and include material, labor and manufacturing overhead. All inventories are valued using the FIFO (first-in, first-out) method of inventory valuation. The Company writes down obsolete and overstocked inventory based on the usage of inventory over a three year period and projected usage based on current backlog.
Income Taxes
The Company accounts for income taxes using the asset and liability method. Under this method the Company records deferred income taxes for the temporary differences between the financial reporting basis and the tax basis of assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled. The resulting deferred tax liabilities and assets are adjusted to reflect changes in tax law or rates in the period that includes the enactment date.
Property, Plant, and Equipment
Property, plant, and equipment are carried at cost, and depreciation is provided using the straight-line method at rates based upon the following estimated useful lives (in years) of the assets:
The Company assesses long-lived assets for impairment under ASC 360-10-35, Property, Plant and Equipment Subsequent Measurement. When events or circumstances indicate that an asset may be impaired, an assessment is performed. The estimated future undiscounted cash flows associated with the asset are compared to the assets net book value to determine if a write down to market value less cost to sell is required.
Repairs and maintenance are expensed as incurred. Improvements which extend the useful life of property, plant, and equipment are capitalized.
Research and Development Costs
Costs for the design and development of new products are expensed as incurred. |
CONDENSED BALANCE SHEETS PARENTHETICALS (USD $)
|
May 26, 2012
|
Nov. 30, 2011
|
---|---|---|
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common Stock, shares issued | 3,078,315 | 3,078,315 |
Common Stock, shares outstanding | 2,578,315 | 2,578,315 |
Treasury stock, shares | 500,000 | 500,000 |
Document and Entity Information
|
6 Months Ended | |
---|---|---|
May 26, 2012
|
Jul. 10, 2012
|
|
Document and Entity Information | ||
Entity Registrant Name | MICROPAC INDUSTRIES INC | |
Document Type | 10-Q | |
Document Period End Date | May 26, 2012 | |
Amendment Flag | false | |
Entity Central Index Key | 0000065759 | |
Current Fiscal Year End Date | --11-30 | |
Entity Common Stock, Shares Outstanding | 2,578,315 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2012 | |
Document Fiscal Period Focus | Q2 |
CONDENSED STATEMENTS OF OPERATIONS (USD $)
|
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
May 26, 2012
|
May 28, 2011
|
May 26, 2012
|
May 28, 2011
|
|
NET SALES | $ 4,098 | $ 5,437 | $ 7,812 | $ 11,027 |
COST AND EXPENSES: | ||||
Cost of goods sold | (3,054) | (3,529) | (5,659) | (6,931) |
Research and development | (81) | (246) | (203) | (395) |
Selling, general and administrative expenses | (947) | (978) | (1,815) | (1,958) |
Total cost and expenses | (4,082) | (4,753) | (7,677) | (9,284) |
OPERATING INCOME BEFORE INTEREST,OTHER INCOME AND INCOME TAXES | 16 | 684 | 135 | 1,743 |
Interest and other income | 3 | 7 | 6 | 7 |
INCOME BEFORE TAXES | 19 | 691 | 141 | 1,750 |
Provision for taxes | (7) | (249) | (51) | (630) |
NET INCOME | $ 12 | $ 442 | $ 90 | $ 1,120 |
NET INCOME PER SHARE, BASIC AND DILUTED | $ 0.00 | $ 0.17 | $ 0.03 | $ 0.43 |
DIVIDENDS PER SHARE | $ 0.00 | $ 0.00 | $ 0.10 | $ 0.10 |
WEIGHTED AVERAGE OF SHARES, Basic and diluted | 2,578,315 | 2,578,315 | 2,578,315 | 2,578,315 |
EARNINGS PER COMMON SHARE
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6 Months Ended |
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May 26, 2012
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EARNINGS PER COMMON SHARE | |
EARNINGS PER COMMON SHARE | Note 7 EARNINGS PER COMMON SHARE Basic and diluted earnings per share are computed based upon the weighted average number of shares outstanding during the respective periods. Diluted earnings per share give effect to all dilutive potential common shares. For the three and six months ended May 26, 2012 and May 28, 2011, the Company had no dilutive potential common stock. |
COMMITMENTS
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6 Months Ended |
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May 26, 2012
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COMMITMENTS | |
COMMITMENTS | Note 6 COMMITMENTS
On June 1, 2011, the Company renewed a $6,000,000 revolving line of credit agreement with a Texas banking institution for a term of two years. The interest rate is equal to the prime rate. The line of credit requires that the Company maintain a quick ratio of at least 1:1, maintain a tangible net worth of $10,000,000 and maintain a total liabilities to tangible net worth of less than 1.25:1. The Company has not, to date, used any of the available line of credit. The Company is currently in compliance with such financial requirements. |
SHAREHOLDERS' EQUITY
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6 Months Ended |
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May 26, 2012
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SHAREHOLDERS' EQUITY. | |
SHAREHOLDERS' EQUITY | Note 8 SHAREHOLDERS EQUITY
On December 16, 2010, the Board of Directors of Micropac Industries, Inc. approved the payment of a special dividend of $0.10 per share for shareholders of record as of January 18, 2011. The dividend was paid to the shareholders on February 10, 2011.
On December 12, 2011, the Board of Directors of Micropac Industries, Inc. approved the payment of a special dividend of $0.10 per share for shareholders of record as of January 18, 2012. The dividend was paid to the Companys shareholders on February 14, 2012. |
SUBSEQUENT EVENTS
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6 Months Ended |
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May 26, 2012
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SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | Note 9 SUBSEQUENT EVENTS
Management has evaluated subsequent events after the balance sheet date, through the issuance of the financial statements, for appropriate accounting and disclosure.
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STOCK-BASED COMPENSATION
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6 Months Ended |
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May 26, 2012
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STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | Note 5 STOCK-BASED COMPENSATION
On March 1, 2001, the Companys shareholders approved the 2001 Employee Stock Option Plan (the Stock Plan) with 500,000 options available to be granted. No options have been granted to date. |