1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K/A
Annual Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
For the fiscal year ended June 30, 1996 Commission file number 1-9334
BALDWIN TECHNOLOGY COMPANY, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 13-3258160
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
65 ROWAYTON AVENUE, ROWAYTON, CONNECTICUT 06853
(Address of principal executive offices) (Zip Code)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 203-838-7470
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class Name of Each Exchange
on Which Registered
CLASS A COMMON STOCK AMERICAN STOCK EXCHANGE
PAR VALUE $.01
Securities registered pursuant to Section 12(g) of the Act:None
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 [ ]
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of the registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. [ ]
Aggregate market value of the voting stock held by non-affiliates of the
registrant as of August 31, 1996 was $43,409,713.
Number of shares of Common Stock outstanding at August 31, 1996:
Class A Common Stock............ 15,515,727
Class B Common Stock............ 1,835,883
----------
Total........................... 17,351,610
DOCUMENTS INCORPORATED BY REFERENCE
Items 10, 11, 12 and 13 are incorporated by reference from the Baldwin
Technology Company, Inc. Proxy Statement for the 1996 Annual Meeting of
Stockholders to be held on November 19, 1996 into Part III of this Form 10-K. (A
definitive proxy statement will be filed with the Securities and Exchange
Commission within 120 days after the close of the fiscal year covered by this
Form 10-K.)
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BALDWIN TECHNOLOGY COMPANY, INC.
CONSOLIDATED BALANCE SHEET
(IN THOUSANDS, EXCEPT SHARE DATA)
LIABILITIES AND SHAREHOLDERS' EQUITY
June 30, June 30,
1996 1995
-------- --------
CURRENT LIABILITIES
Loans payable........................................ $ 9,704 $ 9,188
Current portion of long-term debt.................... 492 160
Accounts payable, trade.............................. 17,500 14,895
Notes payable, trade................................. 10,793 12,637
Accrued salaries, commissions, bonus and
profit-sharing..................................... 9,769 9,680
Customer deposits.................................... 6,686 5,410
Accrued and withheld taxes........................... 2,780 2,321
Income taxes payable................................. 5,557 4,389
Other accounts payable and accrued liabilities....... 14,957 12,648
-------- --------
Total current liabilities...................... 78,238 71,328
-------- --------
LONG-TERM LIABILITIES:
Long-term debt....................................... 33,576 29,868
Other long-term liabilities.......................... 8,470 9,686
-------- --------
Total long-term liabilities.................... 42,046 39,554
-------- --------
Total liabilities.............................. 120,284 110,882
-------- --------
SHAREHOLDERS' EQUITY:
Class A Common Stock, $.01 par, 45,000,000 shares
authorized, 16,391,683 shares issued at June 30,
1996 (16,011,586 at June 30, 1995)................. 164 160
Class B Common Stock, $.01 par, 4,500,000 shares
authorized, 2,000,000 shares issued................ 20 20
Capital contributed in excess of par value........... 57,185 54,881
Retained earnings.................................... 44,149 41,631
Cumulative translation adjustment.................... 49 4,174
Unrealized gain on investments net of $124,000 of
deferred taxes (none at June 30, 1995)............. 118
Less: Treasury stock, at cost:
Class A -- 818,156 shares (174,256 at June 30,
1995)
Class B -- 164,117 shares (164,117 at June 30,
1995)............................................ (4,629) (1,978)
-------- --------
Total Shareholders' Equity............................. 97,056 98,888
-------- --------
COMMITMENTS............................................
-------- --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY............. $217,340 $209,770
======== ========
The accompanying notes to consolidated financial statements
are an integral part of these statements.
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3
BALDWIN TECHNOLOGY COMPANY, INC.
CONSOLIDATED STATEMENT OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
For the years ended June 30,
----------------------------------
1996 1995 1994
-------- -------- --------
Net sales.................................................. $259,301 $222,341 $198,055
Cost of goods sold.......................................... 173,271 146,727 130,051
-------- -------- --------
Gross profit............................................... 86,030 75,614 68,004
-------- -------- --------
Operating expenses:
General and administrative............................... 27,428 24,614 23,595
Selling.................................................. 25,371 21,233 18,473
Engineering.............................................. 13,896 12,055 9,949
Research and development................................. 7,126 5,241 5,460
Restructuring charge..................................... 3,000
-------- -------- --------
76,821 63,143 57,477
-------- -------- --------
Operating income........................................... 9,209 12,471 10,527
-------- -------- --------
Other (income) expense:
Interest expense......................................... 4,032 3,436 3,694
Interest (income)........................................ (552) (577) (381)
Other (income), net...................................... (1,490) (1,130) (887)
-------- -------- --------
1,990 1,729 2,426
-------- -------- --------
Income from operations before taxes........................ 7,219 10,742 8,101
-------- -------- --------
Provision for income taxes:
Domestic:
Federal................................................ 288 1,456 1,211
State.................................................. 772 570 637
Foreign................................................ 3,641 3,065 2,121
-------- -------- --------
Total income taxes................................... 4,701 5,091 3,969
-------- -------- --------
Net income................................................. $ 2,518 $ 5,651 $ 4,132
======== ======== ========
Net income per share....................................... $ 0.14 $ 0.32 $ 0.23
======== ======== ========
Weighted average shares outstanding........................ 17,793 17,939 18,015
======== ======== ========
The accompanying notes to consolidated financial statements
are an integral part of these statements.
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4
BALDWIN TECHNOLOGY COMPANY, INC.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(IN THOUSANDS, EXCEPT SHARES)
Class A Class B Capital
Common Stock Common Stock in Excess
-------------------------- ------------------------ of Par
Shares Amount Shares Amount Value
---------- ------ ------ ------ ---------
Balance at June 30, 1993 16,000,707 $160 2,000,000 $20 $54,795
Year ended June 30, 1994:
Net income for the year
Stock options exercised 9,999 42
Purchase of treasury stock
Translation adjustment
Transaction gain on hedge of
net investment in foreign
subsidiaries
---------- ---- --------- --- -------
Balance at June 30, 1994 16,010,706 160 2,000,000 20 54,837
Year ended June 30, 1995:
Net income for the year
Stock options exercised 880 4
Purchase of treasury stock
Acquisition of treasury stock
in exchange for cancellation
of note receivable from
former officer
Issuance of common stock from
treasury to officer under
incentive compensation agreement 40
Translation adjustment
---------- ---- --------- --- -------
Balance at June 30, 1995 16,011,586 160 2,000,000 20 54,881
Year ended June 30, 1996:
Net income for the year
Stock issued in conjunction with
the acquisition of Acrotec 350,000 4 2,184
Stock options exercised 30,097 120
Purchase of treasury stock
Unrealized gain on available
for sale securities, net of tax
Translation adjustment
---------- ---- --------- --- -------
Balance at June 30, 1996 16,391,683 $164 2,000,000 $20 $57,185
========== ==== ========= === =======
Treasury
Cumulative Unrealized Stock
Retained Translation Gain on -----------------------
Earnings Adjustments Investments Shares Amount
---------- ----------- ----------- -------- --------
Balance at June 30, 1993 $31,848 $(3,792) (27,056) $ (167)
Year ended June 30, 1994:
Net income for the year 4,132
Stock options exercised
Purchase of treasury stock (129,700) (850)
Translation adjustment 1,880
Transaction gain on hedge of
net investment in foreign
subsidiaries 12
------- ------- ---- -------- -------
Balance at June 30, 1994 35,980 (1,900) (156,756) (1,017)
Year ended June 30, 1995:
Net income for the year 5,651
Stock options exercised
Purchase of treasury stock (196,617) (965)
Acquisition of treasury stock
in exchange for cancellation
of note receivable from
former officer (25,000) (171)
Issuance of common stock from
treasury to officer under
incentive compensation agreement 40,000 175
Translation adjustment 6,074
------- ------- ---- -------- -------
Balance at June 30, 1995 41,631 4,174 (338,373) (1,978)
Year Ended June 30, 1996:
Net income for the year 2,518
Stock issued in conjunction with
the acquisition of Acrotec
Stock options exercised
Purchase of treasury stock (643,900) (2,651)
Unrealized gain on available
for sale securities, net of tax $118
Translation adjustment (4,125)
------- ------- ---- -------- -------
Balance at June 30, 1996 $44,149 $ 49 $118 (982,273) $(4,629)
======= ======= ==== ======== =======
The accompanying notes to consolidated financial statements
are an integral part of these statements.
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5
BALDWIN TECHNOLOGY COMPANY, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands)
For the years ended June 30,
---------------------------------
1996 1995 1994
-------- -------- --------
Cash flows from operating activities:
Income from operations .......................................... $ 2,518 $ 5,651 $ 4,132
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization ............................... 4,801 4,504 4,729
Accrued retirement pay ...................................... (289) 149 152
Provision for losses on accounts receivable ................. 95 190 1,589
Restructuring charge ........................................ 3,000
Changes in assets and liabilities:
Accounts and notes receivable ................................. 904 (14,003) 3,741
Inventories ................................................... 643 (4,586) 1,639
Prepaid expenses and other .................................... 568 (262) (3,704)
Customer deposits ............................................. (103) 1,029 612
Accrued compensation .......................................... 476 1,471 150
Accounts and notes payable, trade ............................. 2,803 2,357 (4,612)
Income taxes payable .......................................... 1,824 (51) 1,557
Accrued and withheld taxes .................................... 545 394 (163)
Other accounts payable and accrued liabilities ................ (2,520) 793 (1,675)
Interest payable .............................................. 18 (31) 353
-------- -------- --------
Net cash provided (used) by operating activities .......... 15,283 (2,395) 8,500
-------- -------- --------
Cash flows from investing activities:
Acquisition of subsidiaries, net of cash acquired ............ (5,137)
Additions or property, net .................................... (5,924) (1,331) (1,009)
Additions of patents, trademarks and drawings, net ............ (617) (532) (810)
Other assets .................................................. (408) 356 (2,644)
-------- -------- --------
Net cash used by investing activities ..................... (12,086) (1,507) (4,463)
-------- -------- --------
Cash flows from financing activities:
Long-term borrowings .......................................... 11,101 2,000 34,722
Short-term borrowings ......................................... 8,665 4,390 11,807
Long-term debt repayment ...................................... (9,970) (4,863) (35,835)
Short-term debt repayment ..................................... (10,062) (2,296) (15,301)
Stock options exercised ....................................... 120 4 42
Principal payments under capital lease obligations ............ (427) (524) (739)
Other long-term liabilities ................................... (1,687) (543) 286
Treasury stock purchased ...................................... (2,651) (965) (850)
-------- -------- --------
Net cash used by financing activities ..................... (4,911) (2,797) (5,868)
-------- -------- --------
Effect of exchange rate changes ............................... (1,681) 1,354 689
-------- -------- --------
Net decrease in cash and cash equivalents ................. (3,395) (5,345) (1,142)
Cash and cash equivalents at beginning of year .................. 13,189 18,534 19,676
-------- -------- --------
Cash and cash equivalents at end of year ........................ $ 9,794 $ 13,189 $ 18,534
======== ======== ========
The accompanying notes to consolidated financial statements
are an integral part of these statements.
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6
BALDWIN TECHNOLOGY COMPANY, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
FOR THE YEARS ENDED JUNE 30,
----------------------------
1996 1995 1994
------ ------ ------
(IN THOUSANDS)
Cash paid during the period for:
Interest ................................. $4,014 $3,467 $3,356
Income taxes ............................. $5,869 $5,076 $3,471
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES;
Fiscal year ended June 30, 1996. The Company acquired the capital stock
of Acrotec AB and its subsidiaries (Acrotec) in a purchase transaction for
consideration of $7,848,000 ($5,660,000 in cash and 350,000 shares of the
Company's Class A Common Stock). The fair value of the acquired assets
excluding goodwill was $16,915,000 and the liabilities assumed were
$12,539,000. The excess of the purchase price over the net assets acquired of
$3,472,000 was recorded as goodwill.
A restructuring charge was expensed during the second quarter of the
fiscal year in a non-cash transaction of $3,000,000. The change in the related
liability is recorded as a change in "Other accounts payable and accrued
liabilities" for cash flow purposes. (See Note 3 -- Notes to Consolidated
Financial Statements.)
Other assets includes $267,000 of previously capitalized patent costs
unrealized as royalties at June 30, 1996.
The Company entered into capital lease agreements of $81,000 for the
year ended June 30, 1996.
Fiscal year ended June 30, 1995. The Company successfully defended a
patent which, under the terms of the patent purchase agreement with the
patent's inventor, entitles the Company to indemnification of a portion of the
legal fees incurred to defend the patent infringement. Accordingly, the Company
reclassified from patents to long term assets $693,000 of legal fees. These
previously capitalized patent costs will be realized as royalties become
payable to the patent's inventor. At June 30, 1995, other assets included
$548,000 of such costs.
In accordance with the terms of a note receivable from a former
officer, the Company canceled the note in exchange for the collateral which
consisted of 25,000 shares of the Company's Class B Common Stock. The balance
of the note together with interest receivable was $171,000.
Under an incentive compensation agreement with an officer, the Company
issued from treasury 40,000 shares of Class A Common Stock for which the
accrued compensation of $235,000 had been expensed at June 30, 1994.
The Company entered into capital lease agreements of $129,000 during
the year ended June 30, 1995.
Fiscal year ended June 30, 1994. The Company established deferred tax
assets during the current year in a non-cash transaction of $1,200,000.
The Company entered into capital lease agreements of $169,000 for the
year ended June 30, 1994.
DISCLOSURE OF ACCOUNTING POLICY:
For purposes of the statement of cash flows, the Company considers all
highly liquid instruments with original maturities of three months or less to
be cash equivalents.
The accompanying notes to consolidated financial statements
are an integral part of these statements.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
BALDWIN TECHNOLOGY COMPANY, INC.
--------------------------------
(REGISTRANT)
By: GERALD A. NATHE
-----------------------------
GERALD A. NATHE
(PRESIDENT AND CHIEF EXECUTIVE OFFICER)
Dated: October 7, 1996
Pursuant to the requirements of the Securities Exchange Act of 1934, this
Report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.
SIGNATURE TITLE DATE
-------- ---- ----
WENDELL M. SMITH Chairman of the Board
- --------------------------- and Director October 7, 1996
(WENDELL M. SMITH)
GERALD A. NATHE President, Chief Executive
- --------------------------- Officer and Director October 7, 1996
(GERALD A. NATHE)
AKIRA HARA Vice President and
- --------------------------- Director October 7, 1996
(AKIRA HARA)
WILLIAM J. LAURICELLA Treasurer and Chief
- --------------------------- Financial Officer October 7, 1996
(WILLIAM J. LAURICELLA)
HELEN P. OSTER Secretary October 7, 1996
- ---------------------------
(HELEN P. OSTER)
WARREN W. SMITH Chief Accounting Officer October 7, 1996
- ---------------------------
(WARREN W. SMITH)
JUDITH A. BOOTH Director October 7, 1996
- ---------------------------
(JUDITH A. BOOTH)
SAMUEL B. FORTENBAUGH III Director October 7, 1996
- ---------------------------
(SAMUEL B. FORTENBAUGH III)
JUDITH G. HYERS Director October 7, 1996
- ---------------------------
(JUDITH G. HYERS)
M. RICHARD ROSE Director October 7, 1996
- ---------------------------
(M. Richard Rose)
RALPH R. WHITNEY, JR. Director October 7, 1996
- ---------------------------
(RALPH R. WHITNEY, JR.)