-----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, Jogje60U7QrkFDvFSyUV+jMw/oqj19EFD6FcxlLD5kCB/61U+xf4f8uy2Twr5zit zzrkDDlVEJp1nTfFrEHpOQ== 0000730045-97-000001.txt : 19970222 0000730045-97-000001.hdr.sgml : 19970222 ACCESSION NUMBER: 0000730045-97-000001 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970214 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: IMTEC INC CENTRAL INDEX KEY: 0000730045 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-PAPER AND PAPER PRODUCTS [5110] IRS NUMBER: 030283466 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-12661 FILM NUMBER: 97532642 BUSINESS ADDRESS: STREET 1: ONE IMTEC LN CITY: BELLOWS FALLS STATE: VT ZIP: 05101 BUSINESS PHONE: 8024639502 MAIL ADDRESS: STREET 1: ONE IMTEC LN CITY: BELLOWS FALLS STATE: VT ZIP: 05101 10-Q 1 10-Q FOR THE PERIOD ENDED DECEMBER 31, 1996 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q [X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANG ACT OF 1934. For the quarterly period ended December 31, 1996. Commission File Number: 0-12661 Exact Name of Registrant as Specified in its Charter: IMTEC, Inc. State of Incorporation: Delaware I.R.S. Employer Identification Number: 03-0283466 Address of Principal Executive Offices: One Imtec Lane Bellows Falls, VT 05101 Registrant's Telephone Number: 802-463-9502 Indicate by check mark whether the registrant (1) has filled 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 shorted period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. [X] YES [ ] NO APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Common shares outstanding as of January 20, 1996, 1,545,088 IMTEC, INC. INDEX Page # Part I Financial Information Condensed Balance Sheets - December 31, 1996 and June 30, 1996 3 - 4 Condensed Statements of Income - Three Months and Six Months Ended December 31, 1996 and 1995 5 Condensed Statements of Cash Flows Three Months and Six Months Ended December 31, 1996 and 1995 6 Notes to Condensed Financial Statements 7 - 8 Management's Discussion and Analysis of Financial Condition and Results of Operations 9 Part II Other Information Item 4 Submission of Matters to a Vote of Security Holders 11 Item 6 Exhibits and Reports on Form 8-K 11 Signatures 12
PART I - FINANCIAL INFORMATION IMTEC, INC. CONDENSED BALANCE SHEETS December 31, June 30, 1996 1996 . (Unaudited) * ASSETS Current Assets: Cash $ 920,964 $ 806,633 Marketable Securities 54,671 54,671 Accounts and notes receivable: Trade, less allowance for doubtful accounts: December 31, 1996 - $74,397 June 30, 1996 - $93,915 1,200,596 1,281,101 Inventories 1,603,349 1,512,037 Prepaid expenses and deferred charges 92,316 134,650 Income Tax Refundable 0 87,086 Deferred income tax 96,330 96,330 ---------- --------- Total Current Assets 3,968,226 3,972,508 Plant and equipment 4,076,616 3,569,012 Less: Accumulated depreciation 2,810,843 2,573,562 --------- --------- 1,265,773 995,450 Other Assets: Deposits 41,605 150,481 Computer software less accumulated amortization of $423,838 in 1996 and $317,718 in 1996, 77,399 109,008 Other intangibles less accumulated amortization of, $486,928 in 1996 and $362,535 in 1996 233,230 211,638 --------- --------- 352,234 471,127 $ 5,586,233 $ 5,439,085 ========= ========= * From audited financial statements.
The accompanying notes are an integral part of these condensed financial statements.
PART I - FINANCIAL INFORMATION IMTEC, INC. CONDENSED BALANCE SHEETS (CONTINUED) December 31, June 30, 1996 1996 . (Unaudited) * LIABILITIES AND STOCKHOLDERS EQUITY Current Liabilities Notes payable - bank $ 0 $ 0 Current installments of long term debt 0 0 Current capital lease obligations 0 0 Accounts payable 152,427 430,420 Income tax payable 141,103 0 Accrued liabilities Salaries and wages 144,237 176,276 Commissions 199,715 45,899 Other 307,563 417,030 ------- --------- Total Current Liabilities 945,045 1,069,625 Long term debt less current installments - - Long term capital lease obligations - - 945,045 1,069,625 Stockholders' equity: Common stock - $.01 par value; authorized 5,000,000 shares, issued and outstanding: 1,545,088 shares December 31, 1996 1,545,038 shares June 30, 1996 15,451 15,451 Additional paid-in capital 2,449,517 2,449,517 Retained Earnings 2,176,220 1,904,492 --------- --------- Total Stockholders' Equity 4,641,188 4,369,460 $ 5,586,233 $ 5,439,085 ======== ======== * From audited financial statements.
The accompanying notes are an integral part of these condensed financial statements.
IMTEC, INC. CONDENSED STATEMENTS OF INCOME (Unaudited) Six Months Ended Three Months Ended December 31, December 31, 1996 1995 1996 1995 Net Sales $4,197,209 $4,764,384 $2,097,066 $2,184,273 Cost of Sales 2,217,389 2,685,783 1,178,594 1,259,346 --------- --------- --------- --------- Gross Profit 1,979,820 2,078,601 918,472 924,927 Selling, general and administrative expenses 1,253,169 1,090,016 585,840 403,271 Research and development expenses 300,946 305,960 158,274 151,866 --------- -------- ------- ------- Operating Profit 425,705 682,625 174,358 369,790 Other Income: Miscellaneous income and other expenses 23,141 12,820 10,877 1,411 Interest Expense 0 0 0 0 Income Before Income Taxes 448,846 695,445 185,235 371,201 --------- -------- ------- ------- Income Tax Expense 177,118 275,850 72,164 147,237 --------- -------- ------- ------- Net Income $ 271,728 $ 419,595 $ 113,071 $ 223,964 ========== ========= ========= ========= Weighted average number of common shares and common shares equivalents outstanding 1,604,691 1,563,634 1,609,280 1,579,532 Earnings per common share and common share equivalents $ .17 $ .27 $ .07 $ .14 ====== ====== ====== ======
The accompanying notes are an integral part of these condensed financial statements.
IMTEC, INC. CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended Three Months Ended December 31, December 31, 1996 1995 1996 1995 Cash flows from operating activities: Net Earnings $271,728 $419,595 $113,071 $223,964 Adjust, to reconcile net earnings to, net cash provided by operating activities: Depreciation & amortization of property plant, equipment and other assets 310,843 255,643 155,420 133,508 Decrease(inc.) in accounts receivable 80,505 499,428 (35,586) (53,849) Decrease(inc.) income tax refundable 87,086 Decrease (inc.) in inventory (91,312) (78,004) (32,192) (41,596) Decrease (inc.) in prepaid expenses and other assets 151,210 (28,109) 23,286 (5,898) Increase (dec.) in accounts payable (277,993) (323,415) (60,747) (64,819) Increase (dec.) in income tax payable 141,103 (30,594) 123,561 (122,213) Increase (dec.) in accrued liabilities 12,310 (490,699) (27,217) (300,130) ------- ------- ------- --------- Net cash from by operating activities 685,480 223,845 259,596 (213,033) Cash flows from (used in) investment activities: Expenditures for property & equipment, computer software and other intangible assets (571,149) (285,179) (121,165) (88,672) Net cash used in invest. activities (571,149) (285,179) (121,165) (88,672) Cash flows from (used in) financing activities: Principal notes payable to bank Proceeds from new long term debt Principal payments on long term debt Principal payments under capital lease obligations Proceeds from issuance of stock 0 27,501 0 0 Net cash provided by finance activities 0 27,501 0 0 Net increase (decrease) in cash 114,331 (33,833) 138,431 (319,705) Cash at the beginning of period 806,633 685,727 782,533 971,599 --------- --------- --------- --------- Cash at the end of period $ 920,964 $ 651,894 $ 920,964 $ 651,894 ======= ======= ======= ======= Supplemental Information Disclosures: Interest paid Income tax paid $ 32,512 $ 306,444 $ 32,512 $ 269,450
The accompanying notes are an integral part of these condensed financial statements. IMTEC, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited) 1 - Basis of Presentation The financial information included herein is unaudited: however, such information reflects all adjustments (consisting solely of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of results for the interim periods. The results of operations for the six month period ended December 31, 1996 are not necessarily indicative of the results to be expected for the full year. 2 - Inventories Inventories consist of: December 31, June 30, 1996 1996 Finished Products $ 12,913 $ 39,299 Work in Process 141,624 97,310 Purchased Components 1,448,812 1,375,428 --------- --------- 1,603,349 1,512,037 ========= ========= Inventory cost consisted of the cost of purchased components and supplies, manufacturing labor and manufacturing overhead. 3 - Liability for Estimated Product Warranty On December 31, 1996 and June 30, 1996, the Company had provided $137,739 and $119,954 respectively, against future product warranties based on its experience with customer claims. Warranty expenses charged to income amounted to approximately $45,925 for the six month period ended December 31, 1996 and $57,704 for the six month period ended December 31, 1995. 4 - Earnings per Common Share Primary earnings per share were computed by dividing net earnings by the weighted average number of shares of common stock equivalents outstanding during the year, if dilutive. Common stock equivalents (stock options and warrants) are assumed to be exercised when they are issued and the proceeds used to repurchase outstanding shares of the Company's common stock at the average price during the period. The fully-diluted computation is performed using the same method as for the primary computation, except that the proceeds from exercised stock options and warrants are assumed to be used to repurchase outstanding shares of the Company's common stock at the higher of the average or December 31st market price. The average number of common share and common share equivalents entering into the calculation of primary and fully-diluted earnings per share are as follows:
Six months ended December 31, 1996 1995 Common shares 1,545,088 1,477,122 Options 55,666 86,512 Warrants 0 0 --------- --------- Total for primary calculation 1,600,754 1,563,634 Options 3,937 0 Warrants 0 0 --------- --------- Total for fully-diluted calculation 1,604,691 1,563,634 ========= ========= Three months ended December 31, 1996 1995 Common shares 1,545,088 1,478,888 Options 57,475 100,644 Warrants 0 0 --------- --------- Total for primary calculation 1,602,563 1,579,532 Options 6,717 0 Warrants 0 0 --------- --------- Total for fully-diluted calculation 1,609,280 1,579,532 ========= =========
IMTEC, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Three Months and Six Months Ended December 31, 1996 as compared to Three Months and Six Months Ended December 31, 1995 Revenues for the three months and six months ended December 31, 1996 decreased approximately 4.0% and approximately 11.9%, respectively, over the corresponding periods in 1995. Revenues from Bar Code labels and printing supplies were $1,497,482 and $3,000,021 for the three month and six month periods ended December 31, 1996 compared to $1,240,340 and $2,415,280, respectively, for the same periods last year. Bar Code labels and printing supplies represented 71.4% and 71.5% of total revenue for the three month and six month periods ended December 31, 1996 compared to 56.8% and 50.7%, respectively, for the same periods last year. Revenues from the sales of Industrial Bar Code Equipment were $599,584 and $1,197,188 for the three and six month periods ended December 31, 1996 compared to $934,771 and $2,333,055 for the same periods in 1995. Industrial Bar Code Equipment sales represented 28.6% and 28.5% of total revenue for the three month and six month periods ended December 31, 1996 compared to 43.2% and 49.3% respectively for the same periods last year. The decrease in bar code equipment sales in the three month and six month periods ended December 31, 1996, when contrasted with the same periods in 1995, is primarily attributable to the completion, in October, 1995 of a contract with UPS. This contract represented sales of approximately $278,938 for the three months and approximately $1,115,752 for the six months ended December 31, 1995. When this contract is removed from the revenues for the prior year, the remaining equipment business decreased 8.6% from $655,833 for the three months ended December 31, 1995 , to $599,584 for the three months ended December 31, 1996 and, decreased 1.7% from $1,217,303 for the six months ended December 31, 1995 , to $1,197,188 for the six months ended December 31, 1996. Equipment backlog decreased from $549,211 at December 31, 1995 to $325,642 at December 31, 1996. Management believes that the trend in Industrial Bar Code Equipment sales will move upward due to expanded partnering and distribution relationships, new product offerings (including three new machine products introduced during the prior fiscal quarter) and expanded use of technology. Cost of sales for the three months and six months ended December 31, 1996 were 56.2% and 52.8% respectively, compared to 57.7% and 56.4% for the same periods in 1995. Selling, general and administrative expenses were $585,840 for the quarter ended December 31, 1996 and $1,253,169 for the six months ended December 31, 1996, as compared to $403,271 and $1,090,016 respectively for the corresponding periods ended December 31, 1995. Such 1995 expenses would have been $618,271 and $1,305,016, respectively, but for a decision by the Vermont Supreme Court in December 1995 which overturned a judgment against the Company in a wrongful termination suit brought by a former employee, thereby enabling the Company to reverse a previously established reserve against such judgment of $215,000. The effect of the reversal represented $.08 per share in earnings during the prior year. Total backlog as of December 31, 1996 was $1,482,170, all of which is shipable by June 30, 1996, compared to approximately $1,486,852 as of December 31, 1995. Development and engineering expenses for the three months and six months ended December 31, 1996 were $158,274 (7.5% of sales) and $300,946 (7.2% of sales) compared to $151,866 (6.9% of sales) and $305,960 (6.4% of sales), respectively, for the same periods last year. Income tax expense is a direct result of the Company's net income before taxes. Net income for the three months and six months ended December 31, 1996 was $113,071 and $271,728, respectively, compared to $223,964 and $419,595, respectively, for the same periods ended December 31, 1995. As of December 31, 1996, the Company's principal available sources of liquidity were, respectively, from operations and a $1,000,000 bank line of credit, all of which was available as of December 31, 1996. Inventories increased by $91,312, from $1,512,037 at June 30, 1996 to $1,603,349 at December 31, 1996, as a result of increasing levels of business in the sales of labels and printing supplies. The Company's capital commitments for fiscal 1997 are expected to be approximately 50% above the level of fiscal 1996. This is the result of the Company's commitment to improve the capability and capacity of its label operations. The Company anticipates that it will fund such commitments from operating revenues and, if required, its bank line of credit. The Company believes that it will be able to offset the effects of inflation by selected price increases in its products, although it can give no assurances in this regard. PART II - OTHER INFORMATION Item 1 - Legal Proceedings None Item 2 - Changes in Securities Not applicable Item 3 - Defaults Upon Senior Securities None Item 4 - Submission if Matters to a Vote of Security Holders A. December 11, 1996 - Annual Meeting of Stockholders B. Election of Directors - all nominees elected Item 5 - Other Information None Item 6 - Exhibits and Reports on Form 8-K Exhibit 27 - Financial Data Schedule 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 hereunto duly authorized. IMTEC, INC. BY:____/s/ Richard L. Kalich___________ Richard L. Kalich President & Chief Executive Officer BY:____/s/ George S. Norfleet III______ George S. Norfleet III Secretary / Treasurer EX-27 2 FDS --
5 IMTEC, Inc., EX-27, FDS for 10-Q, December 31, 1996 0000730045 IMTEC, Inc. 1 US 6-MOS JUN-30-1997 JUL-01-1996 DEC-31-1996 1 92694 54671 1200596 74397 1603349 3968226 4076616 2810843 5586233 945045 0 0 0 15451 2449517 5586233 4197209 4197209 1438890 2217389 1554115 74397 0 448846 177118 271728 0 0 0 271728 0.17 0.17
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