UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB/A
(Amendment #2)
X QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
--- SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended January 31, 2000
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 001-10287
LIFSCHULTZ INDUSTRIES, INC.
(Exact name of small business issuer as specified in its charter)
DELAWARE No. 87-0448118
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(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
641 West 59th Street, New York, NY 10019
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(Address of principal executive offices)
(212) 397-7788
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(Issuer's telephone number)
Not Applicable
--------------
(Former name, former address and former
fiscal year, if changed since last
report.)
The number of shares of the issuer's common stock outstanding as of March 15, is
1,121,655 shares.
This Form 10-QSB/A (Amendment #2) is being filed to correct in Item 1 the
calculation of Net Earnings Per Common Share - Assuming Dilution.
PART I- FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
--------------------
Lifschultz Industries, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Unaudited)
January 31, 2000 and July 31, 1999
ASSETS
31-Jan-00 31-Jul-99
--------- ---------
CURRENT ASSETS
Cash and cash equivalents $ 996,000 $ 1,175,000
Marketable securities 919,000 993,000
Trade accounts receivable, net 2,523,000 3,059,000
Related party receivable 55,000 51,000
Deferred income taxes 323,000 323,000
Inventories 4,137,000 3,190,000
Other current assets 54,000 159,000
----------- ------------
Total current assets 9,007,000 8,950,000
PROPERTY HELD FOR LEASE, NET 1,339,000 1,598,000
PROPERTY AND EQUIPMENT, NET 2,097,000 1,181,000
LAND 170,000 170,000
DEFERRED INCOME TAXES 1,222,000 1,222,000
----------- ------------
$13,835,000 $ 13,121,000
=========== ============
The accompanying notes are an integral part of these statements.
2
Lifschultz Industries, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Unaudited)
January 31, 2000 and July 31, 1999
LIABILITIES AND SHAREHOLDERS' EQUITY
31-Jan-00 31-Jul-99
--------- ---------
CURRENT LIABILITIES
Notes payable to banks $ 620,000 $ 150,000
Trade accounts payable 809,000 688,000
Income taxes payable 112,000 149,000
Accrued liabilities 1,118,000 1,528,000
Current maturities of capital lease 50,000 39,000
obligations
Current maturities of long-term obligation 2,000 2,000
----------- ------------
Total current liabilities 2,711,000 2,556,000
LONG-TERM OBLIGATION, less current maturities 5,000 5,000
CAPITAL LEASE OBLIGATIONS, less current maturities 133,000 92,000
COMMITMENTS AND CONTINGENCIES - -
SHAREHOLDERS' EQUITY
Convertible preferred stock, par value $0.01;
authorized 100,000 shares
Series A; issued and outstanding 5,200 - -
shares at January 31, 2000 and July 31, 1999
Series E; issued and outstanding 552 - -
shares at January 31, 2000 and July 31, 1999
Common stock, par value $0.001; authorized
1,650,000 shares: issued 1,121,655 shares at
January 31, 2000 and 1,117,519 at July 31, 1999 1,000 1,000
Additional paid-in capital 11,060,000 11,060,000
Treasury stock, at cost (22,560 common shares) (157,000) (157,000)
Accumulated earnings (deficit) 82,000 (436,000)
Total shareholders' equity 10,986,000 10,468,000
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$13,835,000 $ 13,121,000
=========== ============
The accompanying notes are an integral part of these statements.
3
Lifschultz Industries, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)
For the three months and six months ended January 31,
(Three months ended) (Six months ended)
2000 1999 2000 1999
---- ---- ---- ----
Net Revenues $ 4,620,000 $ 3,920,000 $ 8,491,000 $ 7,418,000
Cost and expenses:
Cost of products sold 2,533,000 2,014,000 4,801,000 4,014,000
Selling, general and 1,506,000 1,328,000 2,661,000 2,372,000
administrative
Research and development 235,000 203,000 430,000 331,000
Interest expense 14,000 10,000 24,000 17,000
----------- ----------- ----------- -----------
4,288,000 3,555,000 7,916,000 6,734,000
----------- ----------- ----------- -----------
Earnings before income taxes 332,000 365,000 575,000 684,000
Income tax expense 28,000 30,000 57,000 62,000
NET EARNINGS $ 304,000 $ 335,000 $ 518,000 $ 622,000
=========== =========== =========== ===========
Net earnings per common
share - basic
(based on 1,121,655 common shares
outstanding) $ 0.27 $ 0.30 $ 0.46 $ 0.49
=========== =========== =========== ===========
Net earnings per common
share - assuming dilution
(based on 1,292,805 common shares $ 0.23 $ 0.26 $ 0.40 $ 0.48
=========== =========== =========== ===========
The accompanying notes are an integral part of these statements.
4
Lifschultz Industries, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the six months ended January 31,
2000 1999
---- ----
Increase (decrease) in cash and cash equivalents
Cash flows from operating activities
Net Earnings $ 518,000 $ 622,000
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization 71,000 107,000
Amortization of leasehold interest 259,000 255,000
Changes in assets and liabilities:
Accounts receivable 536,000 126,000
Related party receivable (4,000) 17,000
Inventories (947,000) (324,000)
Deferred Tax - -
Other current assets 105,000 (160,000)
Accounts payable 121,000 94,000
Accrued liabilities (410,000) (568,000)
Income taxes payable (37,000) 27,000
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Total Adjustments (306,000) (426,000)
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Net cash provided (used) by
operating activities 212,000 196,000
Cash flows from investing activities
Purchase of property and equipment (987,000) (379,000)
Purchase of marketable securities (126,000) (375,000)
Proceeds from maturities of marketable
securities 200,000 354,000
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Net cash used in investing activities (913,000) (400,000)
Cash flows from financing activities
Principal payments on long-term obligations - (1,000)
Principal payments on capital lease
obligations (20,000) (18,000)
Proceeds from Capital Lease 72,000 -
Net change in line of credit 470,000 196,000
Cash received from issuance of common stock - -
------------ -----------
Net cash provided by financing activities 522,000 177,000
5
Lifschultz Industries, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS (cont.)
(Unaudited)
For the six months ended January 31,
2000 1999
---- ----
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of quarter (179,000) (27,000)
Cash and cash equivalents at end of quarter 1,175,000 989,000
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$ 996,000 $ 962,000
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Supplemental disclosures of cash flow information
- -------------------------------------------------
Cash paid during the quarter for
Interest $ 10,000 $ 10,000
Income Taxes 128,000 $ 27,000
The accompanying notes are an integral part of these statements.
6
Notes to Financial Statements
(unaudited)
Note 1
- ------
The consolidated financial statements have been prepared by Lifschultz
Industries Inc. (the "Company") without audit, in accordance with generally
accepted accounting principles. Pursuant to the rules and regulations of the
Securities and Exchange Commission, certain disclosures normally included in
consolidated financial statements prepared in accordance with generally accepted
accounting principles have been omitted or condensed. It is management's belief
that the disclosures made are adequate to make the information presented not
misleading and reflect all adjustments (consisting only of normal recurring
adjustments) necessary for a fair presentation of financial position and results
of operations for the periods presented. The results of operations for the
periods presented should not be considered as necessarily indicative of
operations for the full year. It is recommended that these consolidated
financial statements be read in conjunction with the consolidated financial
statements for the year ended July 31, 1999 and the notes thereto included in
the Company's Form 10-KSB.
Note 2
- ------
Certain items from fiscal year 1999 were reclassified to be consistent with the
2000 statement of earnings presentation with no effect on net income.
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
has caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
LIFSCHULTZ INDUSTRIES, INC.
Date March 16, 2000 By: /s/DENNIS R. HUNTER
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Dennis R. Hunter
President and Chief
Financial Officer
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