UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the period ended April 30, 1999
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 0-14812
EDISON CONTROL CORPORATION
(Exact name of registrant as specified in its charter)
New Jersey 22-2716367
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
777 Maritime Drive
PO Box 308
Port Washington, WI 53074-0308
(Address of principal executive offices)
(Zip Code)
(414) 268-6800
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year, if changed
since last report)
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, $.01 par value: 2,346,933 as of April 30, 1999
- -------------------------------------------------------------
EDISON CONTROL CORPORATION AND SUBSIDIARIES
INDEX
Form 10-Q
Page Number
-----------
Part I Financial Information
Item 1 Financial Statements
Consolidated Balance Sheets Pages 2 & 3
April 30, 1999 (Unaudited) and
January 31, 1999
Consolidated Statements of Operations Page 4
Three months ended April 30,
1999 and 1998 (Unaudited)
Consolidated Statements of Cash Flows Pages 5 & 6
Three months ended April 30,
1999 and 1998 (Unaudited)
Notes to Consolidated Financial Statements Pages 7 - 9
(Unaudited)
Item 2 Management's Discussion and Analysis of Pages 9 - 12
Operations and Financial Condition
Item 3 Quantitative and Qualitative Disclosures
About Risk Pages 12 - 13
Part II Other Information
Item 6 Exhibits Page 13 and
Exhibit Index
1
PART I.
Item 1
Financial Statements
EDISON CONTROL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
April 30, 1999 and January 31, 1999
April 30, January 31,
1999 1999
---- ----
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 913,976 $ 468,072
Investments 95,000 190,000
Trading securities 1,053,113 3,616,314
Trade accounts receivable, net 3,565,017 3,513,342
Receivable from affiliate 74,583 93,575
Inventories, net 7,493,390 7,619,746
Prepaid expenses and other assets 250,051 193,650
Refundable income taxes 0 120,505
Deferred income taxes 77,000 2,000
Assets held for sale 1,032,200 1,032,200
Deferred financing costs 0 389,236
----------- -----------
Total current assets 14,554,330 17,238,640
Investment in and advances to affiliate 436,263 421,263
Other Assets:
Prepaid pension 122,488 151,477
Deferred income taxes 279,000 129,000
----------- -----------
Total other assets 401,488 280,477
Property, plant and equipment, net 8,038,803 8,187,899
Goodwill (net of amortization) 8,632,252 8,690,318
Organizational/finance costs (net of
amortization) 62,816 84,400
----------- -----------
TOTAL ASSETS $32,125,952 $34,902,997
=========== ===========
(Continued)
See Accompanying Notes.
2
EDISON CONTROL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
April 30, 1999 and January 31, 1999
(Continued)
April 30, January 31,
1999 1999
---- ----
(Unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Trade accounts payable $ 1,011,789 $ 1,939,917
Accrued compensation 460,676 739,938
Taxes other than income taxes 40,953 21,325
Other accrued expenses 508,771 522,694
Income taxes payable 236,280 0
Deferred compensation 754,250 754,250
Current maturities on long-term debt 933,439 530,423
----------- -----------
Total current liabilities 3,946,158 4,508,547
Long-term debt, less current maturities 11,858,589 14,211,178
----------- -----------
Total Liabilities 15,804,747 18,719,725
Shareholders' Equity:
Preferred stock, $.01 par value: 1,000,000 shares
authorized, none issued 0 0
Common stock, $.01 par value: 20,000,000 shares
authorized, 2,346,933 shares issued
and outstanding 23,469 23,469
Additional paid-in capital 10,323,225 10,323,225
Retained earnings 5,921,670 5,760,823
Accumulated other comprehensive income 52,841 75,755
----------- -----------
Total Shareholders' Equity 16,321,205 16,183,272
----------- -----------
TOTAL LIABILITIES AND EQUITY $32,125,952 $34,902,997
=========== ===========
See Accompanying Notes.
3
EDISON CONTROL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED APRIL 30, 1999 AND 1998
(Unaudited)
1999 1998
---- ----
NET SALES $6,117,533 $6,725,614
COST OF GOODS SOLD 3,997,597 4,453,433
---------- ----------
GROSS PROFIT 2,119,936 2,272,181
OTHER OPERATING EXPENSES:
Selling, engineering and
administrative expenses 1,204,640 1,192,549
Goodwill and organizational/
finance cost amortization 79,650 79,646
---------- ----------
Total other operating expenses 1,284,290 1,272,195
---------- ----------
OPERATING INCOME 835,646 999,986
OTHER EXPENSE (INCOME):
Interest expense 251,409 268,203
Realized (gains) losses on trading securities (260,953) 12,250
Unrealized losses (gains) on trading securities 192,817 (622,780)
Stock warrant amortization 389,236 245,833
Miscellaneous income (28,886) (39,171)
---------- ----------
Total other expense (income) 543,623 (135,665)
---------- ----------
INCOME BEFORE INCOME TAXES 292,023 1,135,651
INCOME TAXES 131,176 480,906
---------- ----------
NET INCOME 160,847 654,745
OTHER COMPREHENSIVE (LOSS) INCOME-
Foreign currency translation adjustment (22,914) 87,837
---------- ----------
COMPREHENSIVE INCOME $ 137,933 $ 742,582
========== ==========
Net income per share - basic $ .07 $ .29
Net income per share - diluted $ .06 $ .23
See Accompanying Notes.
4
EDISON CONTROL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED APRIL 30, 1999 AND 1998
(Unaudited)
1999 1998
---- ----
OPERATING ACTIVITIES:
Net income $ 160,847 $ 654,745
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation and amortization 693,589 510,955
Provision for doubtful accounts 66,044 36,929
Realized (gain) loss on sales of trading securities (260,953) 12,250
Unrealized loss (gain) on trading securities 192,817 (622,780)
Purchases of trading securities (650,438)
Proceeds from the sale of trading securities 2,631,337 147,750
Equity in earnings of affiliate (15,000) (20,000)
Changes in assets and liabilities:
Accounts receivable (117,719) (734,862)
Receivable from affiliate 18,992 (26,592)
Inventories 126,356 (301,187)
Prepaid expenses and other assets (27,412) 83,690
Trade accounts payable (928,128) 180,206
Accrued compensation (279,262) (340,317)
Taxes other than income taxes 19,628 42,301
Other accrued expenses (13,923) 29,040
Deferred income taxes (148,000) 420,000
Income taxes payable 279,785 43,411
----------- -----------
Total adjustments 2,238,151 (1,189,644)
----------- -----------
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES 2,398,998 (534,899)
----------- -----------
INVESTING ACTIVITIES:
Additions to plant and equipment (75,607) (60,917)
Maturity of certificate of deposit 95,000
Payments received from affiliate 30,000
----------- -----------
NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES 19,393 (30,917)
----------- -----------
(Continued)
See Accompanying Notes.
5
EDISON CONTROL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED APRIL 30, 1999 AND 1998
(Unaudited)
(Continued)
1999 1998
---- ----
FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt $ 5,157,183 $ 500,000
Payments on long-term debt (7,106,756) (315,793)
----------- -----------
NET CASH (USED IN) PROVIDED BY
FINANCING ACTIVITIES (1,949,573) 184,207
----------- -----------
EFFECT OF EXCHANGE RATE CHANGES
ON CASH (22,914) 87,837
----------- -----------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 445,904 (293,772)
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 468,072 1,037,288
----------- -----------
CASH AND CASH EQUIVALENTS,
END OF PERIOD $ 913,976 $ 743,516
=========== ===========
Supplemental disclosure of cash flow information:
Cash paid during the period for income taxes $ 0 $ 17,495
Cash paid during the period for interest 257,374 249,740
See Accompanying Notes.
6
EDISON CONTROL CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
Note 1 - Basis of Presentation
The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, these statements do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all adjustments
(consisting of normal, recurring accruals) considered necessary for a fair
presentation have been included. Operating results for the three month period
ending April 30, 1999 are not necessarily indicative of the results that may be
expected for other interim periods or the year ended January 31, 2000. For
further information, refer to the financial statements and footnotes thereto
included in the Company's annual report on Form 10-K for the year ended January
31, 1999.
Note 2 - Nature of Business and Accounting Policies
Principles of Consolidation - The consolidated financial statements include the
accounts of Edison Control Corporation ("Edison") and subsidiaries, all of which
subsidiaries are wholly owned by Edison (collectively, the "Company"). All
material intercompany accounts and transactions have been eliminated in
consolidation.
Nature of Operations - The Company is currently comprised of the following
operations. Construction Forms ("ConForms") is a leading manufacturer and
distributor of systems of pipes, couplings and hoses and other equipment used
for the pumping of concrete. ConForms manufactures a wide variety of finished
products which are used to create appropriate configurations of systems for
various concrete pumps. Ultra Tech manufactures abrasion resistant piping
systems for use in industries such as mining, pulp and paper, power and waste
treatment. Gilco produces a line of concrete and plaster/mortar mixers. JABCO
primarily leases property and equipment to the Company.
Trading Securities - Debt and equity securities purchased and held principally
for the purpose of sale in the near term are classified as "trading securities"
and reported at fair value with unrealized gains and losses included in
earnings. The cost of individual securities sold is based on the first-in,
first-out method.
Estimates - 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 reported
period. Actual results could differ from those estimates.
7
Translation of Foreign Currencies - Assets and liabilities of foreign operations
are translated into United States dollars at current exchange rates. Income and
expense accounts are translated into United States dollars at average rates of
exchange prevailing during the year. Adjustments resulting from the translation
of financial statements of the foreign operations are included as foreign
currency translation adjustments in other comprehensive income.
Net income per share - Reconciliation of the numerator and denominator of the
basic and diluted per share computations for the three months ended April 30,
1999 and 1998 are summarized as follows:
1999 1998
---- ----
Net income per share - basic:
Net income (numerator) $ 160,847 $ 654,745
Weighted average shares outstanding (denominator) 2,346,933 2,275,933
Net income per share - basic $ .07 $ .29
Net income per share - diluted:
Net income (numerator) $ 160,847 $ 654,745
Weighted average shares outstanding (denominator) 2,346,933 2,275,933
Effect of dilutive securities:
Stock options 177,949 186,778
Stock warrants 392,025 352,679
---------- ----------
Weighted average shares outstanding (denominator) 2,916,907 2,815,390
Net income per share - diluted $ .06 $ .23
Reclassifications - Certain reclassifications have been made to the prior
periods' financial statements to conform with the current year presentation.
Note 3 - Long-Term Debt
On April 30, 1999, Edison refinanced its bank debt and amended its master credit
agreement with LaSalle National Bank of Chicago. As part of the refinancing,
Edison liquidated approximately $2,600,000 of its existing trading security
portfolio and utilized these funds to reduce its outstanding debt. Also, as part
of the refinancing, LaSalle paid the subordinated bank loan holder in full
(approximately $6,800,000).
8
The Company's amended master credit agreement expires April 30, 2004 and allows
for revolving credit borrowings not to exceed $6,000,000 ($4,325,000 outstanding
at April 30, 1999). Borrowings, which are based on qualified assets, bear
interest at either the prime rate or the LIBOR rate plus 2%.
The Company also maintains a $5,750,000 term loan under the amended master
credit agreement. Quarterly principal payments of $200,000 are required by the
agreement. Borrowings bear interest at either the prime rate or the LIBOR rate
plus 2.25%. The agreement calls for an additional annual principal payment based
on excess cash flow as defined in the agreement.
The terms of the amended master credit agreement, among other provisions,
require the Company to maintain a minimum current ratio, tangible net worth, and
debt service coverage ratio, and restricts the Company to a maximum funded debt
to EBITDA ratio. Substantially all of the Company's assets are collateralized
under the amended master credit agreement. The LIBOR spread may be reduced or
increased annually based on the achievement of a certain "funded debt to EBITDA"
ratio.
Note 4 - Segment Information
The Company's operating segments are organized based on the nature of products
and services provided. A description of the nature of the segment's operations
and their accounting policies are contained in Note 2.
Segment information for the quarters ended April 30, 1999 and 1998 follows:
1999 1998
---- ----
Net Operating Net Operating
Sales Income Sales Income
----- ------ ----- ------
ConForms $5,082,901 $953,762 $5,091,558 $960,239
Ultra Tech 466,689 91,999 1,140,154 171,467
Gilco 567,943 (115,789) 493,902 (25,465)
Edison (94,326) (106,255)
---------- -------- ---------- --------
Total $6,117,533 $835,646 $6,725,614 $999,986
Item 2.
Management's Discussion and Analysis of Operations and Financial Condition
Certain matters discussed in this Quarterly Report on Form 10-Q are
"forward-looking statements" intended to qualify for the safe harbors from
liability established by the Private Securities Litigation Reform Act of 1995.
These forward-looking statements can generally be identified as such because the
context of the statement will include words such as the Company "believes",
"anticipates", "expects", or words of similar import. Similarly, statements that
describe the Company's future plans, objectives or goals are also
forward-looking statements. Such forward-looking statements are subject to
certain risks and uncertainties, including, but not limited to, new product
advancements by competition, significant changes in industry technology,
economic or political conditions in the countries in which the Company does
business, the continued availability of sources of supply, the availability and
consummation of favorable acquisition opportunities, increasing competitive
pressures on pricing and other contract terms, economic factors affecting the
Company's customers, stock price variations
9
affecting the Company's securities trading portfolio and issues related to Year
2000 problems. These factors could cause actual results to differ materially
from those anticipated as of the date of this report. Shareholders, potential
investors and other readers are urged to consider these factors in evaluating
the forward-looking statements and are cautioned not to place undue reliance on
such forward-looking statements. The forward-looking statements included herein
are only made as of the date of this report and the Company undertakes no
obligation to publicly update such forward-looking statements to reflect
subsequent events or circumstances.
Net sales for the quarter ended April 30, 1999 decreased $608,081 (9.0%) to
$6,117,533 when compared with the same period of the prior year. The principal
reason for the change was due to the decrease in large project sales at Ultra
Tech. Ultra Tech's sales volume will continue to fluctuate based on its ability
to attain large project sales in the industries it serves.
As a percentage of net sales, gross margin for the quarter increased to 34.7%
from 33.8% due to improved results from foreign operations and fewer lower
margin project sales at Ultra Tech. Selling, engineering and administrative
expenses increased by $12,091 (1%).
Interest expense decreased to $251,409 for the quarter ended April 30, 1999
compared to $268,203 for the quarter ended April 30, 1998. Interest expense is
expected to decrease due to the debt refinancing described in Note 3 of the
Notes to Consolidated Financial Statements and the anticipated principal
reductions in the future.
The $68,136 net gain on trading securities compared to last year's net gain of
$610,530 accounted for a majority of the change in pre-tax income. During the
quarter ended April 30, 1999, the Company sold $2,631,337 of its trading
securities and realized a net gain of $260,953 on these sales. Trading
securities at April 30, 1999 consisted of the following:
Number of Market
Name of Issuer/Title of Issue Shares Value
- ----------------------------- ------ -----
Common Stocks:
Glenayre Technologies, Inc. 40,000 $ 132,500
Panavision Inc. 304 2,632
Sun International Hotels 100 4,231
US Trust Corporation 10,000 913,750
-----------
Total $ 1,053,113
===========
Although the Company has no established formal investment policies or practices
for its trading securities portfolio, the Company generally pursues an
aggressive trading strategy, focusing primarily on generating near-term capital
appreciation from its investments in common equity securities. Securities held
in the Company's portfolio at the end of each period are reported at fair value,
with unrealized gains and losses included in earnings for that period. These
factors, combined with the relative size of the Company's trading portfolio, has
led, and will likely continue to lead, to significant period-to-period earnings
volatility depending upon the capital appreciation or
10
depreciation of the Company's trading securities portfolio as of the end of each
reporting period. The Company does not use or buy derivative securities.
The amortization of goodwill, financing costs and stock warrants created a total
non-cash charge of $468,886 for the first quarter compared to $325,479 for the
prior year first quarter. Due to the repayment of the subordinated bank loan,
the guarantee provided by the principal shareholder of Edison was canceled.
Accordingly, all remaining deferred financing costs ($143,403), related to the
warrant issued to the principal shareholder for providing the guarantee, were
expensed in the first quarter of fiscal 1999. The total amortization of all
these non-cash charges for the year ended January 31, 2000 is expected to
approximate $660,000.
The Company recorded tax expense of $131,176 for the three months ended April
30, 1999, which represents the estimated annual effective rate of 44.9% applied
to pre-tax book income. Deferred income taxes reflect the net tax effects of
temporary differences between the carrying amount of assets and liabilities for
financial statement reporting purposes and the amounts used for income tax
purposes.
Net income of $160,847, or $.07 and $.06 per share, basic and diluted,
respectively, for the first quarter of 1999 was a decrease of $493,898 (75.4%),
from net income of $654,745, or $.29 and $.23 per share, basic and diluted, for
the comparable period of the prior year. This change was principally due to the
reduction of the net gain on trading securities and the increase in amortization
of the non-cash charges described above.
Liquidity and Capital Resources
The Company generated $2,398,998 in cash from operations during the first three
months of 1999, compared to cash flow used in operations of $534,899 for the
same period last year. This change was due largely to the net proceeds of
$2,631,337 received from sales of trading securities during the period. The
Company used $75,607 in cash to acquire capital equipment and received $95,000
in cash from the maturity of a certificate of deposit. As described in Note 3 of
the Notes to Consolidated Financial Statements, the Company refinanced its bank
debt resulting in a net debt reduction of $1,949,573 in the quarter compared to
a net debt increase of $184,207 in the prior comparable period. The result was a
net increase in cash and cash equivalents of $445,904 for the first quarter of
fiscal 1999 compared to a net decrease of $293,772 in the prior year first
quarter.
The Company believes that it can fund proposed capital expenditures and
operational requirements from operations and currently available cash and cash
equivalents, investments, trading securities and existing bank credit lines.
Proposed capital expenditures for the fiscal year ending January 31, 2000 are
expected to total approximately $900,000, compared to $3,082,725 for fiscal
1998. The significant decrease is due principally to the completion in fiscal
year 1998 of construction of an addition at the Company's Port Washington
facility and the implementation of a new enterprise resource planning system.
The Company also intends to sell its Cedarburg facility. The Company's asking
price for the facility is $1,295,000, although there can be no assurance as to
when or if this facility may be sold.
11
The Company intends to continue to expand its businesses, both internally and
through potential acquisitions. The Company currently anticipates that any
potential acquisitions would be financed primarily by internally generated funds
or additional borrowings or the issuance of the Company's stock.
Year 2000 Issues
During fiscal 1998, the Company engaged in a comprehensive project to select and
implement a new enterprise resource planning ("ERP") system that will properly
recognize the Year 2000 problem. This project involved replacing certain
hardware and software maintained by the Company. The Company has received a
representation from the ERP software provider that its software is Year 2000
compliant. On February 1, 1999, the Company started operating with the new ERP
system. Contingency plans have been developed and will be implemented if Year
2000 problems are encountered with the new ERP system.
The total cumulative cost of the project was approximately $530,000. Purchased
ERP system hardware and software, approximately $385,000 of the total estimated
cost, was capitalized in fiscal 1998. Personnel and all other remaining costs
related to the project were expensed as incurred in fiscal 1998.
The Company has not formally communicated with all its customers and suppliers
to determine the extent to which the Company is vulnerable to those third
parties' failure to address Year 2000 issues. The Company's business operations
could be affected by the Year 2000 readiness of its customers and suppliers in
such areas as the delay in receipt of cash from customers, the interruption of
utilities and the inability of suppliers to deliver in a timely manner. The
Company does not anticipate any materially adverse affect on its business due to
Year 2000 problems encountered by its customers or suppliers; however, there can
be no assurance that its business will not be materially adversely affected by
such problems.
Item 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company is exposed to interest rate risk, foreign currency risk and equity
price risk. These risks include changes in U.S interest rates, changes in
foreign currency exchange rates as measured against the U.S. dollar and changes
in the prices of stocks traded on the U.S. markets.
Interest Rate Risk
The Company's revolving credit borrowings and variable rate term loans, which
total $12,792,028 as of April 30, 1999, are subject to interest rate risk. Most
of the borrowings float at either the prime rate or LIBOR plus a certain amount
of basis points. Based on the April 30, 1999 balance, an increase of one percent
in the interest rate on the Company's loans would cause an increase in interest
expense of approximately $128,000, or $.03 per diluted share, on an annual
basis. The Company currently does not use derivatives to fix variable rate
interest obligations.
12
Foreign Currency Risk
The Company has foreign operations in the United Kingdom and Malaysia. Sales and
purchases are typically denominated in the British pound, Malaysian ringgit,
German mark, Singapore dollar or U.S. dollar, thereby creating exposures to
changes in exchange rates. The changes in exchange rates may positively or
negatively affect the Company's sales, gross margins and retained earnings. The
Company does not enter into foreign exchange contracts but attempts to minimize
currency exposure risk through working capital management. There can be no
assurance that such an approach will be successful, especially in the event of a
significant and sudden decline in the value of a currency.
Equity Price Risk
Approximately 3% of the Company's total assets as of April 30, 1999 are invested
in trading securities of various domestic companies. The market value of these
investments is subject to fluctuation. This factor, combined with the relative
size of the Company's trading portfolio ($1,053,113 at April 30, 1999), has led
and will likely continue to lead, to significant period-to-period earnings
volatility depending upon the capital appreciation or depreciation of the
Company's trading securities portfolio. A 10% decrease in the quoted market
price of these trading securities would decrease the fair market value of these
securities by approximately $105,000, or $0.02 per diluted share. Although the
Company has no established formal investment policies or practices for its
trading securities portfolio, the Company generally pursues an aggressive
trading strategy, focusing primarily on generating near-term capital
appreciation from its investments in common equity securities. Securities held
in the Company's portfolio at the end of each period are reported at fair value,
with unrealized gains and losses included in earnings for that period. These
factors, combined with the relative size of the Company's trading portfolio, has
led, and will likely continue to lead, to significant period-to-period earnings
volatility depending upon the capital appreciation or depreciation of the
Company's trading securities portfolio as of the end of each reporting period.
The Company does not use or buy derivative securities.
PART II.
Item 6.
Exhibits
The Exhibits filed or incorporated by reference herein are as specified in the
Exhibit Index.
Reports on Form 8-K
The Company filed no reports on Form 8-K during the quarter to which the report
relates.
13
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 thereunto duly authorized.
EDISON CONTROL CORPORATION
(Registrant)
Date: June 4, 1999 /s/ Jay R. Hanamann
-----------------------
Jay R. Hanamann
(Chief Financial Officer)
14
Edison Control Corporation
Exhibit Index
-------------
Exhibit No. Description
- ----------- -----------
4. Amendment No. 1 to Master Credit Agreement dated April 30,
1999 between Construction Forms, Inc. and LaSalle National
Bank.
27. Financial Data Schedule.
15