UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: July 31, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _________ to ___________
Commission file number 0-12619
Collins Industries, Inc.
(Exact name of registrant as specified in its charter)
Missouri
State or other jurisdiction of incorporation)
43-0985160
(I.R.S. Employer Identification Number)
421 East 30th Avenue Hutchinson, Kansas 67502-2489
(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code 316-663-5551
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
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 Stock, $.10 par value 7,339,110
Class Outstanding at August 20, 1996
COLLINS INDUSTRIES, INC. AND SUBSIDIARIES
FORM 10-Q
JULY 31, 1996
INDEX
PART I. FINANCIAL INFORMATION PAGE NO
Item 1. Financial Statements:
Consolidated Condensed Balance Sheets 3
July 31, 1996 and October 31, l995
Consolidated Condensed Statements of Income -
Three and Nine Months Ended July 31, 1996 and 1995 4
Consolidated Condensed Statements of Cash Flows -
Nine Months Ended July 31, 1996 and 1995 5
Notes to Consolidated Condensed Financial Statements 6
Item 2.
Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 10
SIGNATURES 11
PART I. - FINANCIAL INFORMATION
Item 1 - Financial Statements
Collins Industries, Inc. and Subsidiaries
CONSOLIDATED CONDENSED BALANCE SHEETS
July 31, October 31,
1996 1995
(Unaudited)
ASSETS
Current assets:
Cash $ 229,528 $ 842,953
Receivables, trade & other, net 7,469,450 7,375,492
Inventories, lower of cost or
market (Note 2) 21,282,400 23,466,727
Prepaid expenses and other
current assets 527,491 400,753
Total current assets 29,508,869 32,085,925
Property and equipment, at cost: 34,841,928 35,152,977
Less: accumulated depreciation 22,555,006 21,730,893
Net property and equipment 12,286,922 13,422,084
Other assets 1,167,043 1,373,042
Total assets $42,962,834 $46,881,051
LIABILITIES & SHAREHOLDERS' INVESTMENT
Current liabilities:
Current maturities of long-term
debt & leases $ 1,122,520 $ 1,158,070
Accounts payable 12,179,160 14,154,891
Accrued expenses 3,096,755 3,321,210
Total current liabilities 16,398,435 18,634,171
Long-term capitalized leases,
less current maturities 696,077 1,745,797
Long-term debt, less current maturities 12,860,972 17,659,933
Deferred income taxes 36,000 36,000
Shareholders' investment:
Common stock, $.10 par value 733,466 728,689
Paid-in capital 19,719,453 19,593,605
Retained earnings (deficit) (7,481,569) (11,517,144)
Total shareholders' investment 12,971,350 8,805,150
Total liabilities &
shareholders' investment $42,962,834 $46,881,051
(See accompanying notes)
Collins Industries, Inc. and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended
July 31,
1996 1995
Sales $40,180,332 $35,441,171
Cost of sales 34,174,297 30,857,204
Gross profit 6,006,035 4,583,967
Selling, general and
administrative expenses 3,605,756 3,396,738
Income from operations 2,400,279 1,187,229
Other income (expense):
Interest expense (542,843) (843,168)
Other, net 107,815 46,497
(435,028) (796,671)
Income before provision
for income taxes 1,965,251 390,558
Provision for income taxes 0 0
Income before
extraordinary items 1,965,251 390,558
Extraordinary items (Note 3) 0 (420,444)
Net income (loss) $ 1,965,251 $ (29,886)
Earnings (loss) per share:
Income (loss) per common and
common equivalent share:
Income before extraordinary items $0.25 $0.05
Extraordinary items 0.00 (0.05)
Net income (loss) $0.25 $0.00
Average Outstanding Common and
Common Equivalent 7,826,589 7,269,410
CONSOLIDATED CONDENSED STATEMENTS OF INCOMES (CON'T)
(Unaudited)
Nine Months Ended
July 31,
1996 1995
Sales $110,226,714 $103,887,448
Cost of sales 93,931,834 90,577,605
Gross profit 16,294,880 13,309,843
Selling, general and administrative
expenses 10,728,885 10,265,945
Income from operations 5,565,995 3,043,898
Other income (expense):
Interest expense (1,782,648) (2,631,315)
Other, net 267,228 149,035
(1,515,420) (2,482,280)
Income before provision
for income taxes 4,050,575 561,618
Provision for income taxes 15,000 0
Income before
extraordinary items 4,035,575 561,618
Extraordinary items (Note 3) 0 (420,444)
Net income (loss) $ 4,035,575 $ 141,174
Earnings (loss) per share:
Income (loss) per common and
common equivalent share:
Income before extraordinary items $0.53 $0.07
Extraordinary items 0.00 (0.05)
Net income (loss) $0.53 $0.02
Average Outstanding Common and
Common Equivalent Shares 7,545,406 7,226,816
(See accompanying notes)
Collins Industries, Inc. and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW
(Unaudited)
Nine Months Ended
July 31,
1996 1995
Cash flow from operations:
Cash received from customers $110,132,756 $104,544,248
Cash paid to suppliers and employees (102,788,210) (104,038,472)
Interest paid (1,930,296) (2,631,315)
Cash provided by (used in)
operations 5,414,250 (2,125,539)
Cash flow from investing activities:
Capital expenditures (662,864) (324,044)
Sale of property and equipment 668,038 643,667
Other, net (148,618) (176,187)
Cash provided by (used in)
investing activities (143,444) 143,436
Cash flow from financing activities:
Net reduction in short-term borrowings (4,224,736) (3,676,111)
Principal payments of long-term
debt and capitalized leases (1,659,495) (625,000)
Principal payments of note payable 0 (19,380,380)
Addition to long-term debt 0 21,926,191
Cash used in financing activities (5,884,231) (1,755,300)
Net decrease in cash (613,425) (3,737,403)
Cash at beginning of period 842,953 3,814,398
Cash at end of period $ 229,528 $ 76,995
Reconciliation of net income to net cash
provided by (used in) operations
Net income $ 4,035,575 $ 141,174
Non-cash charges to operations 1,561,665 1,940,823
Common stock issued for benefit
of employees 90,000 0
Decrease (increase) in receivables (93,958) 656,800
Decrease (increase) in inventories 2,184,327 (1,182,174)
Decrease (increase) in prepaid
expenses and other current assets (126,738) 167,852
Decrease in accounts payable and
accrued expenses (2,200,186) (4,170,791)
Gain on sale of property
and equipment (36,435) (99,667)
Loss on early extinguishment of debt 0 420,444
Cash provided by (used in) operations $ 5,414,250 $(2,125,539)
(See accompanying notes)
COLLINS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements
(Unaudited)
(1) General
The preparation of financial statements in conformity with
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 revenues and expenses during the reporting
period. Actual results could differ form these estimates.
In the opinion of management, the accompanying unaudited
consolidated condensed financial statements contain all
adjustments (consisting of only normal recurring items) necessary
to summarize fairly the Company's financial position as of July 31,
1996 and October 31, 1995 and results of operations for the
three and nine months ended July 31, 1996 and 1995 and the cash
flows for the nine months ended July 31, 1996 and 1995.
The Company suggests that the unaudited Consolidated Condensed
Financial Statements for the three and nine months ended July 31,
1996 be read in conjunction with the Company's Annual Report for
the year ended October 31, 1995.
(2) Inventories
Inventories, which include material, labor and manufacturing
overhead, are stated at the lower of cost (FIFO) or market.
Major classes of inventories as of July 31, 1996 and October 31,
1995 consisted of the following:
July 31, October 31,
1996 1995
Chassis $ 5,139,041 $ 6,545,808
Raw materials & components 8,481,245 8,294,483
Work in process 2,899,512 3,400,583
Finished goods 4,762,602 5,225,853
$21,282,400 $23,466,727
(3) Earnings per Share
The computation of earnings per share is based on the weighted
average number of outstanding common shares during the period
plus common stock equivalents consisting of certain shares
subject to stock options.
(4) Contingencies and Litigation
At July 31, 1996 the Company had contingencies and litigation
pending which arose in the ordinary course of business.
Litigation is subject to many uncertainties and the outcome of
the individual matters is not presently determinable. It is
management's opinion that this litigation would not result in
liabilities that would have a material adverse effect on the
Company's consolidated financial position or results of
operations.
(5) Income Taxes
The provision for income taxes as calculated at statutory rates
is offset by the tax effect of net operating loss carryforwards.
Item 2 - Management's Discussion and Analysis of Financial
Condition and Results of Operations
RESULTS OF OPERATIONS
Sales
Sales for the nine months ended July 31, 1996 increased 6% to
$110.2 million compared to $103.9 million for the same period in
fiscal 1995. The sales increase for the nine months ended July 31,
1996 was principally due to improved sales of ambulance and
bus products. This increase was partially offset by a decline in
terminal truck sales.
Sales for the quarter ended July 31, 1996 increased 13% to $40.2
million compared to $35.4 million for the same period in fiscal
1995. The sales increase for the quarter ended July 31, 1996 was
principally due to improved sales of ambulance products.
The Company's sales backlog at July 31, 1996 was $50.1 million
compared to $29.2 million at October 31, 1995 and $ 34.3 million
at July 31, 1995.
Cost of Sales
Cost of sales for the nine months ended July 31, 1996 were 85.2%
of sales compared to 87.2% of sales for the same period in fiscal
1995. This margin improvement was principally a result of
improved efficicencies in the operations of the bus product lines
and lower material costs attributable to the consolidation of
certain purchasing operations and to the sales mix in ambulance
products lines. These decreases were partially offset by lower
margins realized from terminal truck products.
Cost of sales for the quarter ended July 31, 1996 were 85.1% of
sales compared to 87.1% of sales for the same period in fiscal
1995. This margin improvement was principally a result of the
improved efficiencies in operations of the bus product lines and
lower material costs attributable to the consolidation of certain
purchasing operations and to the sales mix in ambulance products
lines.
Selling, General & Administrative Expenses
Selling, general and administrative expenses were $10.7 million
or 9.7% of sales for the nine months ended July 31, 1996 compared
to $10.3 million or 9.9% of sales for the nine months ended July 31,
1995. The overall dollar increase was principally due to a
charge of $.4 million to reflect the impact of an unfavorable
jury verdict of certain litigation recorded in the quarter ended
January 31, 1996.
Other Income (Expense)
Interest expense for the nine months ended July 31, 1996 was $1.8
million compared to $2.6 million for the same period in fiscal
1995. Interest expense for the quarter ended July 31, 1996 was
$.5 million compared to $.8 million for the same period in fiscal
1995. These declines resulted from decreases in the Company's
average borrowing rates and reductions in the Company's interest-
bearing debt.
Net Income
The Company's net income was $4.0 million ($.53 per share) for
the nine months ended July 31, 1996 compared to $.1 million ($.02
per share) for the same period in fiscal 1995. This improvement
was principally due to the improved operations in the Company's
ambulance and bus product lines and decreases in interest expense
associated with reduced borrowings and interest rates described
above. Additionally, in the nine months ended July 31, 1995 the
Company recorded extraordinary items associated with the early
retirement of debt of $.4 million ($.05 per share). No
extraordinary charges were incurred in similar periods in fiscal
1996.
The Company's net income for the quarter ended July 31, 1996 was
$2.0 million ($.25 per share) compared to a small loss for the
same period in fiscal 1995. The net income change is principally
due to the same reasons discussed in the immediately preceding
paragraph.
LIQUIDITY AND CAPITAL RESOURCES:
The Company used existing credit lines, internally generated
funds and supplier financing to finance its operations for the
nine months ended July 31, 1996.
The Company believes that its cash flows from operations and its
credit facility with NationsBank of Georgia, N.A. will be
sufficient to satisfy its future working capital and capital
expenditure requirements.
At July 31, 1996, there were no significant or unusual
contractual commitments or capital expenditure requirements.
PART II - OTHER INFORMATION
Item 1 - Legal Proceedings
Not Applicable
Item 2 - Changes in Securities
Not Applicable
Item 3 - Defaults on Senior Securities
Not Applicable
Item 4 - Submission of Matters to a Vote of Security Holders
Not Applicable
Item 5 - Other Information
Not Applicable
Item 6 - Exhibits and Reports on Form 8-K
(a) Exhibits:
27.0 - EDGAR Financial Data Schedule
(b) Reports on Form 8-K - No reports on Form 8-K were filed
during the quarter ended July 31, 1996.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly
authorized.
COLLINS INDUSTRIES, INC.
(REGISTRANT)
DATE August 20, 1996 s/Larry W. Sayre
LARRY W. SAYRE
VICE PRESIDENT - FINANCE AND
CHIEF FINANCIAL OFFICER