☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 75-1225149 | |
(State of Incorporation) | (IRS Employer Identification No.) | |
905 E. Walnut, Garland, Texas | 75040 | |
(Address of Principal Executive Office) | (Zip Code) |
Large accelerated filer o | Accelerated filer o |
Non-accelerated filero | Smaller reporting company x |
PART I -FINANCIAL INFORMATION | |
ITEM 1 - FINANCIAL STATEMENTS | |
Condensed Balance Sheets as of | |
Condensed Statements of Operations for the three | |
Condensed Statements of Cash Flows for the | |
Notes to Condensed Financial Statements (unaudited) | |
ITEM 2 - MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | |
ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | |
ITEM 4 - CONTROLS AND PROCEDURES | |
PART II-OTHER INFORMATION | |
ITEM 1 - LEGAL PROCEEDINGS | |
ITEM 1A -RISK FACTORS | |
ITEM 2 - UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS | |
ITEM 3 - DEFAULTS UPON SENIOR SECURITIES | |
ITEM 4 - MINE SAFETY DISCLOSURE | |
ITEM 5 - OTHER INFORMATION | |
ITEM 6 - EXHIBITS | |
SIGNATURES |
08/29/15 | 11/30/14 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 12,503 | $ | 9,994 | ||||
Short-term investments | 2,003 | 2,009 | ||||||
Receivables, net of allowance for doubtful accounts of $0 at August 29, 2015 and November 30, 2014 | 2,361 | 2,332 | ||||||
Inventories: | ||||||||
Raw materials and supplies | 4,326 | 3,137 | ||||||
Work-in process | 2,726 | 2,343 | ||||||
Total inventories | 7,052 | 5,480 | ||||||
Deferred income taxes | 594 | 610 | ||||||
Prepaid income tax | - | 210 | ||||||
Prepaid expenses and other assets | 186 | 215 | ||||||
Total current assets | 24,699 | 20,850 | ||||||
PROPERTY, PLANT AND EQUIPMENT, at cost: | ||||||||
Land | 80 | 80 | ||||||
Buildings | 498 | 498 | ||||||
Facility improvements | 1,109 | 1,109 | ||||||
Machinery and equipment | 8,359 | 8,262 | ||||||
Construction in process equipment | 341 | 265 | ||||||
Furniture and fixtures | 715 | 715 | ||||||
Total property, plant, and equipment | 11,102 | 10,929 | ||||||
Less accumulated depreciation | (8,851 | ) | (8,777 | ) | ||||
Net property, plant, and equipment | 2,251 | 2,152 | ||||||
Total assets | $ | 26,950 | $ | 23,002 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable | $ | 433 | $ | 575 | ||||
Accrued compensation | 584 | 598 | ||||||
Deferred revenue | 3,212 | 101 | ||||||
Other accrued liabilities | 148 | 161 | ||||||
Income taxes payable | 87 | - | ||||||
Total current liabilities | 4,464 | 1,435 | ||||||
DEFERRED INCOME TAXES | 422 | 368 | ||||||
SHAREHOLDERS’ EQUITY | ||||||||
Common stock, ($0.10 par value), authorized 10,000,000 shares, | 308 | 308 | ||||||
3,078,315 issued and 2,578,315 outstanding at | ||||||||
August 29, 2015 and November 30, 2014 | ||||||||
Additional paid-in capital | 885 | 885 | ||||||
Treasury stock, 500,000 shares, at cost | (1,250 | ) | (1,250 | ) | ||||
Retained earnings | 22,121 | 21,256 | ||||||
Total shareholders’ equity | 22,064 | 21,199 | ||||||
Total liabilities and shareholders’ equity | $ | 26,950 | $ | 23,002 |
CURRENT ASSETS | 02/27/16 | 11/30/15 | ||||||
(Unaudited) | ||||||||
Cash and cash equivalents | $ | 12,090 | $ | 12,651 | ||||
Short-term investments | 2,006 | 2,004 | ||||||
Receivables, net of allowance for doubtful accounts of $0 at February 27, 2016 and November 30, 2015 | 2,365 | 2,360 | ||||||
Inventories: | ||||||||
Raw materials and supplies | 3,889 | 4,255 | ||||||
Work-in process | 2,874 | 2,613 | ||||||
Total inventories | 6,763 | 6,868 | ||||||
Deferred income taxes | 693 | 693 | ||||||
Prepaid expenses and other assets | 143 | 161 | ||||||
Total current assets | 24,060 | 24,737 | ||||||
PROPERTY, PLANT AND EQUIPMENT, at cost: | ||||||||
Land | 80 | 80 | ||||||
Buildings | 498 | 498 | ||||||
Facility improvements | 1,109 | 1,109 | ||||||
Furniture and fixtures | 719 | 719 | ||||||
Construction in process equipment | 349 | 347 | ||||||
Machinery and equipment | 8,430 | 8,432 | ||||||
Total property, plant, and equipment | 11,185 | 11,185 | ||||||
Less accumulated depreciation | (9,003 | ) | (8,929 | ) | ||||
Net property, plant, and equipment | 2,182 | 2,256 | ||||||
Total assets | $ | 26,242 | $ | 26,993 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable | $ | 452 | $ | 404 | ||||
Accrued compensation | 410 | 666 | ||||||
Deferred revenue | 2,720 | 2,855 | ||||||
Property Taxes | 23 | 90 | ||||||
Income taxes payable | 1 | 109 | ||||||
Other accrued liabilities | 93 | 74 | ||||||
Total current liabilities | 3,699 | 4,198 | ||||||
DEFERRED INCOME TAXES | 360 | 360 | ||||||
SHAREHOLDERS' EQUITY | ||||||||
Common stock, ($.10 par value), authorized 10,000,000 shares, 3,078,315 issued and 2,578,315 outstanding at February 27, 2016 and November 30, 2015 | 308 | 308 | ||||||
Additional paid-in capital | 885 | 885 | ||||||
Treasury stock, 500,000 shares, at cost | (1,250 | ) | (1,250 | ) | ||||
Retained earnings | 22,240 | 22,492 | ||||||
Total shareholders' equity | 22,183 | 22,435 | ||||||
Total liabilities and shareholders' equity | $ | 26,242 | $ | 26,993 | ||||
Three months ended | Nine months ended | |||||||||||||||
08/29/15 | 08/30/14 | 08/29/15 | 08/30/14 | |||||||||||||
NET SALES | $ | 5,268 | $ | 5,150 | $ | 15,319 | $ | 15,171 | ||||||||
COST AND EXPENSES: | ||||||||||||||||
Cost of goods sold | (3,232 | ) | (3,390 | ) | (9,248 | ) | (9,373 | ) | ||||||||
Research and development | (351 | ) | (515 | ) | (1,336 | ) | (1,368 | ) | ||||||||
Selling, general & administrative expenses | (1,013 | ) | (983 | ) | (3,070 | ) | (3,089 | ) | ||||||||
Total cost and expenses | (4,596 | ) | (4,888 | ) | (13,654 | ) | (13,830 | ) | ||||||||
OPERATING INCOME BEFORE INTEREST AND TAXES | 672 | 262 | 1,665 | 1,341 | ||||||||||||
Other income | 8 | - | 20 | - | ||||||||||||
Interest (expense) income, net | (3 | ) | 14 | (7 | ) | 8 | ||||||||||
INCOME BEFORE TAXES | $ | 677 | $ | 276 | $ | 1,678 | $ | 1,349 | ||||||||
Provision for taxes | (223 | ) | (100 | ) | (555 | ) | (486 | ) | ||||||||
NET INCOME | $ | 454 | $ | 176 | $ | 1,123 | $ | 863 | ||||||||
NET INCOME PER SHARE, BASIC AND DILUTED | $ | 0.18 | $ | 0.07 | $ | 0.44 | $ | 0.33 | ||||||||
DIVIDENDS PER SHARE | $ | - | $ | - | $ | 0.10 | $ | 0.10 | ||||||||
WEIGHTED AVERAGE OF SHARES, basic and diluted | 2,578,315 | 2,578,315 | 2,578,315 | 2,578,315 |
Three months ended | ||||||||
02/27/16 | 02/28/15 | |||||||
NET SALES | $ | 4,205 | $ | 4,786 | ||||
COST AND EXPENSES: | ||||||||
Cost of goods sold | (2,894 | ) | (2,850 | ) | ||||
Research and development | (307 | ) | (568 | ) | ||||
Selling, general & administrative expenses | (1,003 | ) | (1,040 | ) | ||||
Total cost and expenses | (4,204 | ) | (4,458 | ) | ||||
OPERATING INCOME | 1 | 328 | ||||||
Other income | 7 | 2 | ||||||
Expense, net | - | (2 | ) | |||||
INCOME BEFORE TAXES | 8 | 328 | ||||||
Provision for taxes | (3 | ) | (118 | ) | ||||
NET INCOME | $ | 5 | $ | 210 | ||||
NET INCOME PER SHARE, BASIC AND DILUTED | $ | 0.00 | $ | 0.08 | ||||
DIVIDENDS PER SHARE | $ | 0.10 | $ | 0.10 | ||||
WEIGHTED AVERAGE OF SHARES, basic and diluted | 2,578,315 | 2,578,315 |
Three months ended | ||||||||
2/27/16 | 2/28/15 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 5 | $ | 210 | ||||
Adjustments to reconcile net income to | ||||||||
net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 74 | 77 | ||||||
Deferred taxes | - | 19 | ||||||
Changes in certain current assets and liabilities: | ||||||||
Accounts receivable | (5 | ) | (1,003 | ) | ||||
Inventories | 105 | 151 | ||||||
Prepaid expenses and other current assets | 18 | 72 | ||||||
Accounts payable | 48 | (53 | ) | |||||
Accrued compensation | (256 | ) | (175 | ) | ||||
Deferred revenue | (135 | ) | 3,159 | |||||
Other accrued liabilities | (48 | ) | (7 | ) | ||||
Income taxes payable | (108 | ) | 55 | |||||
Net cash provided by (used in) operating activities | (302 | ) | 2,505 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Sale of short term investments | 2,004 | 2,009 | ||||||
Purchase of short term investments | (2,006 | ) | (2,001 | ) | ||||
Additions to property, plant and equipment | 1 | (37 | ) | |||||
Net cash used in investing activities | (1 | ) | (29 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Cash dividend | (258 | ) | (258 | ) | ||||
Net cash used in financing activities | (258 | ) | (258 | ) | ||||
Net change in cash and cash equivalents | (561 | ) | 2,218 | |||||
Cash and cash equivalents at beginning of period | 12,651 | 9,994 | ||||||
Cash and cash equivalents at end of period | $ | 12,090 | $ | 12,212 | ||||
Nine months ended | ||||||||
8/29/15 | 8/30/14 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 1,123 | $ | 863 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation | 231 | 238 | ||||||
Deferred tax expense | 70 | 127 | ||||||
Changes in certain current assets and liabilities | ||||||||
(Increase) decrease in accounts receivable | (29 | ) | 438 | |||||
(Increase) decrease in inventories | (1,572 | ) | 705 | |||||
Decrease (increase) in prepaid expense and other current assets | 29 | (249 | ) | |||||
Decrease in prepaid income taxes | 210 | - | ||||||
Increase (decrease) in deferred revenue | 3,111 | (453 | ) | |||||
Decrease in accounts payable | (121 | ) | (128 | ) | ||||
Decrease in accrued compensation | (14 | ) | (72 | ) | ||||
Decrease in other accrued liabilities | (13 | ) | (10 | ) | ||||
Increase (decrease) in income taxes payable | 87 | (33 | ) | |||||
Net cash provided by operating activities | 3,112 | 1,426 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Proceeds from maturity of short-term investments | 4,011 | 4,011 | ||||||
Purchase of short-term investments | (4,005 | ) | (4,013 | ) | ||||
Additions to property, plant and equipment | (351 | ) | (223 | ) | ||||
Net cash used in investing activities | (345 | ) | (225 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Cash dividend | (258 | ) | (258 | ) | ||||
Net cash used in financing activities | (258 | ) | (258 | ) | ||||
Net change in cash and cash equivalents | 2,509 | 943 | ||||||
Cash and cash equivalents at beginning of period | 9,994 | 9,263 | ||||||
Cash and cash equivalents at end of period | $ | 12,503 | $ | 10,206 | ||||
Supplemental Cash Flow Disclosure: | ||||||||
Cash paid for income taxes | $ | 363 | $ | 596 | ||||
Supplemental Non-Cash Investing Activity: | ||||||||
Accrued additions to equipment | $ | (21 | ) | $ | - |
Cash paid for income taxes | $ | 110 | $ | - |
Buildings | 15 |
Facility improvements | 8-15 |
Machinery and equipment | 5-10 |
Furniture and fixtures | 5-8 |
ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Three months ended | ||||||||
2/27/2016 | 2/28/2015 | |||||||
NET SALES | 100.0 | % | 100.0 | % | ||||
COST AND EXPENSES: | ||||||||
Cost of Goods Sold | 68.9 | % | 59.5 | % | ||||
Research and development | 7.3 | % | 11.9 | % | ||||
Selling, general & administrative expenses | 23.8 | % | 21.7 | % | ||||
Total cost and expenses | 100.0 | % | 93.1 | % | ||||
OPERATING INCOME | 0.0 | % | 6.9 | % | ||||
Other income | 0.2 | % | - | |||||
INCOME BEFORE TAXES | 0.2 | % | 6.9 | % | ||||
Provision for taxes | 0.1 | % | 2.5 | % | ||||
NET INCOME | 0.1 | % | 4.4 | % |
Three months ended | Nine months ended | |||||||||||||||
8/29/2015 | 8/30/2014 | 8/29/2015 | 8/30/2014 | |||||||||||||
NET SALES | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
COST AND EXPENSES: | ||||||||||||||||
Cost of Goods Sold | 61.3 | % | 65.8 | % | 60.4 | % | 61.8 | % | ||||||||
Research and development | 6.7 | % | 10.0 | % | 8.7 | % | 9.0 | % | ||||||||
Selling, general & administrative expenses | 19.2 | % | 19.1 | % | 20.0 | % | 20.4 | % | ||||||||
Total cost and expenses | 87.2 | % | 94.9 | % | 89.1 | % | 91.2 | % | ||||||||
OPERATING INCOME BEFORE INTEREST AND INCOME TAXES | 12.8 | % | 5.1 | % | 10.9 | % | 8.8 | % | ||||||||
Interest and other income | 0.1 | % | 0.3 | % | 0.1 | % | 0.1 | % | ||||||||
INCOME BEFORE TAXES | 12.9 | % | 5.4 | % | 11.0 | % | 8.9 | % | ||||||||
Provision for taxes | 4.3 | % | 2.0 | % | 3.6 | % | 3.2 | % | ||||||||
NET INCOME | 8.6 | % | 3.4 | % | 7.4 | % | 5.7 | % |
(a) | Evaluation of disclosure controls and procedures. |
(b) | Changes in internal controls. |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A | RISK FACTORS |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the |
31.2 | Certification of Chief Accounting Officer pursuant to Section 302 of the |
32.1 | 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 |
32.2 | 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 |
MICROPAC INDUSTRIES, INC.
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