[LIVE]
THE PURPOSE OF THIS AMMENDMENT IS TO ATTACH THE FINANCIAL DATA SCHEDULE
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
(Mark One)
( X ) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1995
or
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND
EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 1-9477
Joule' Inc.
(Exact name of registrant as specified in its charter)
Delaware 22-2735672
(State or other jurisdiction (IRS Employer
of incorpora tion or organization) Identification No.)
1245 Route 1 South, Edison, New Jersey 08837
(Address of principal executive officers)
(Zip Code)
(908) 548-5444
(Registrant's telephone number including area code)
Indicate by check mark whether the Registrant (1) has filed all reports 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
As of August 1, 1995 3,610,000 shares of the Registrant's common stock were
outstanding.
Part I - Financial Information
Item 1. Financial Statements
Joule' Inc. and Subsidiaries
Consolidated Balance Sheets
June 30, September 30,
ASSETS 1995 1994
CURRENT ASSETS:
Cash $ 74,000 $ 49,000
Accounts receivable, less allowance
for doubtful accounts of $231,000
and $186,000 respectively 7,146,000 6,293,000
Prepaid expenses and other
current assets 277,000 681,000
Total Current Assets 7,497,000 7,023,000
PROPERTY AND EQUIPMENT, NET OF
ACCUMULATED DEPRECIATION 1,704,000 1,282,000
GOODWILL AND OTHER INTANGIBLES 138,000 156,000
OTHER ASSETS 111,000 115,000
$9,450,000 $8,576,000
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Loans payable to bank $3,445,000 $3,363,000
Accounts payable and accrued
expenses 1,121,000 906,000
Accrued payroll and related taxes 828,000 701,000
Income taxes 0 215,000
Current portion of long term debt 25,000 0
Total Current Liabilities 5,419,000 5,185,000
LONG TERM DEBT 463,000 424,000
Total Liabilities 5,882,000 5,609,000
STOCKHOLDERS' EQUITY:
Preferred stock,$.01 par value:
Authorized 500,000 shares,
none outstanding 0 0
Common stock,$.01 par value:
Authorized 10,000,000
shares-issued 3,760,000 and
3,750,000 shares respectively 38,000 38,000
Paid-in capital 3,502,000 3,488,000
Retained earnings (deficit) 436,000 (151,000)
3,976,000 3,375,000
LESS: Cost of 150,000 shares of common
stock held in treasury 408,000 408,000
Total Stockholders' Equity 3,568,000 2,967,000
$9,450,000 $8,576,000
<FN>
<F1>
See accompanying notes to consolidated financial statements.
</FN>
/TABLE
Joule' Inc. and Subsidiaries
Consolidated Statements of Income
Three Months Ended Nine Months Ended
June 30, June 30, June 30, June 30,
1995 1994 1995 1994
REVENUES $10,969,000 $8,671,000 $31,842,000 $26,720,000
COSTS, EXPENSES, AND OTHER:
COST OF SERVICES 9,094,000 7,376,000 26,641,000 22,539,000
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 1,367,000 1,045,000 3,938,000 3,360,000
INTEREST EXPENSE 97,000 70,000 289,000 193,000
OTHER (INCOME)/EXPENSE 23,000 5,000 27,000 2,000
INCOME BEFORE INCOME TAXES 388,000 175,000 947,000 626,000
INCOME TAXES 147,000 44,000 360,000 157,000
NET INCOME $241,000 $131,000 $587,000 $469,000
NET INCOME PER COMMON SHARE $0.07 $0.04 $0.16 $0.13
NUMBER OF SHARES AND
EQUIVALENTS OUTSTANDING 3,629,000 3,631,000 3,626,000 3,623,000
<FN>
<F1>
See accompanying notes to consolidated financial statements.
</FN>
/TABLE
Joule' Inc. and Subsidiaries
Consolidated Statements of Cash Flows
Nine Months Ended
June 30, June 30,
1995 1994
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:
Net income $587,000 $469,000
Adjustments to reconcile net income to
net cash flows provided from (used in)
operating activities:
Depreciation and amortization 244,000 166,000
Loss from disposal of equipment 4,000 0
Provision for losses on accounts receivable 45,000 50,000
Changes in operating assets and liabilities:
Accounts receivable (898,000) (622,000)
Prepaid expenses and other assets 405,000 (323,000)
Accounts payable and accrued expenses 215,000 (40,000)
Accrued payroll and related taxes 127,000 134,000
Income taxes (215,000) 15,000
Net cash flows from (used in)
operating activities 514,000 (151,000)
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Acquisitions of property and equipment (649,000) (486,000)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Increase (decrease) in loans payable to bank 82,000 400,000
Payment of long term debt (12,000) 0
Additions to long term debt 76,000 246,000
Proceeds from exercise of stock options 14,000 0
Net cash flows from (used in)
financing activities 160,000 646,000
NET CHANGE IN CASH 25,000 9,000
CASH, BEGINNING OF PERIOD 49,000 42,000
CASH, END OF PERIOD $74,000 $51,000
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid $284,000 $186,000
Income taxes paid $579,000 $142,000
<FN>
<F1>
See accompanying notes to consolidated financial statements.
</FN>
/TABLE
Joule' INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
(UNAUDITED)
(1) The consolidated balance sheet at the end of the preceding fiscal year has
been derived from the audited consolidated balance sheet contained in the
Company's Form 10-K and is presented for comparative purposes. All other
financial statements are unaudited. All unaudited amounts are subject to
year end adjustments and audit, but the Company believes all adjustments,
consisting only of normal and recurring adjustments, necessary to present
fairly the financial position, results of operations and change
Footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principals have been omitted
in accordance with the published rules and regulations of the Securities and
Exchange Commission. These consolidated financial statements should be read
in conjunctions with the financial statements and notes thereto included in
the Company's Form 10-K and Annual Report to Stockholders for the most
recent fiscal year.
Joule' INC. AND SUBSIDIARIES
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Condition and Results of Operations
Results of Operations
The Company's revenues are derived from providing labor outsourcing services to
its customers. Revenues increased 26% to $11.0 million during the three
months ended June 30, 1995 from $8.7 million in the prior year. Revenue
for the first nine months of fiscal 1995 amounted to $31.8 million, a 19%
increase over the prior year. The Company's outsourcing services include
staffing services and industrial contracting. Staffing services revenue
increased 27%, to $5.7 million, and 24%, to $15.5 million, for the
respective three and nine months ended June 30, 1995 compared to the same
periods a year ago. Industrial contracting revenues increased to $5.2
million in the current quarter, 24% higher than a year earlier.
Nine month revenues increased 15% to $16.3 million from $14.2 million in the
prior year period. The increases in revenue were attributable to an
expanded customer base of large corporations as the demand for such services
grew. Cost of services improved to 82.9% in the current three months from
85.1% in the prior year and to 83.7% in the current nine months compared to
84.4% a year earlier. These expenses consist primarily of compensation to
employees on assignment to clients and related costs, including social
security, unemployment taxes, geneal liability and workers' compensation
insurance, and other costs of services.
Selling, general and administrative expenses amounted to $1,367,000 and
$3,938,000 in the three and nine months ended June 30, 1995 compared to
$1,045,000 and $3,360,000 a year earlier. These expenses amounted to 12.5%
of revenue in the current three month period compared to 12.1% in the prior
year, and 12.4% of revenue in the nine months ended June 30, 1995 compared
to 12.6% a year earlier. These expenses included the salaries and related
costs of staff employees, provision for the allowance for doubtful accounts,
advertising, professional fees and other costs related to maintaining the
Company's branch officer. Interest expense increased to $97,000 and $289,000
in the current three and nine month periods compared to $70,000 and $193,000
in the prior year as both rates and average borrowings increased. The
income tax rate was 38% in the current periods, an increase from 25% in the
respective three and nine month periods a year earlier because of the use of
net operating loss carry forwards and accumulated tax credits in fiscal
1994. As a result of the above, net income increased to $241,000 or $0.07
per share in the current three month period from $131,000 or $0.04 per share
a year ago; for the nine months ended June 30, 1995 net income increased to
$587,000 or $0.16 per share from $469,000 or $0.13 a share in the prior year.
Joule' INC AND SUBSIDIARIES
Management's Discussion and Analysis of Financial
Condition and Results of Operations (continued)
Liquidity and Capital Resources
Current assets at June 30, 1995 were $7,497,000 as compared to $7,023,000 at
September 30, 1994 and current liabilities were $5,419,000 compared to
$5,185,000 as of the earlier date. Employees typically are paid on a weekly
basis. Clients generally are billed on a weekly basis. The Company has
generally utilized bank borrowings to meet its working capital needs. The
Company has a $4,000,000 bank line of credit; loans thereunder are secured
principally by receivables and bear interest at the bank's base rate plus 1
percent, $3,445,000 was outstanding under this line of June 30, 1995.
The company occupied a new building in the first quarter of fiscal 1995.
This facility was constructed next to its existing headquarters and was
financed by a $500,000 mortgage loan. It is the operational headquarters
for the staffing services division of the Company. The Company believes
that internally generated funds and available borrowings will provide
sufficient funds to meet its requirements for the next 12 months.
Joule' IN AND SUBSIDIARIES
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
On July 17, 1995, the United States Court of Appeals for the Federal Circuit
affirmed the decision of the United States Court of Federal Claims
dismissing the Company's claims against a U.S. Government Agency that
amounted to approximately $6,500,000, including interest. Such claims were
discussed in the Company's Annual Report on Form 10-K for the year ended
September 30, 1994 and in prior filings. The decision will have no
financial statement impact since the carrying value of the claims and
related costs were eliminated in the Company's financial statements for the
fiscal year ended September 30, 1993.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits: Financial Data Schedule
(b) Reports on Form 8-K
No reports on Form 8-K have been filed during the quarter for which this
report is filed.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned there unto duly authorized.
Joule' INC.
(Registrant)
September 20, 1995 E. N. Logothetis
E. N. Logothetis, Chairman
(Principal Executive Officer)
September 20, 1995 Bernard G. Clarkin
Bernard G. Clarkin,
Vice President and Chief
Financial Officer
(Principal Financial Officer)