1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K-A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) MAY 15, 1996
--------------------------------
LABARGE, INC.
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(Exact name of registrant as specified in its charter)
DELAWARE 1-5761 73-0574586
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
707 NORTH SECOND STREET, ST. LOUIS, MISSOURI 63178
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (314) 231-5960
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LABARGE, INC.
FORM 8-K-A
This document is an amendment to a current report on Form 8-K filed by the
registrant on May 28, 1996 to report the acquisition by LaBarge/STC, Inc. a
wholly owned subsidiary of the registrant, of the assets of Sorep Technology
Corporation.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial statements of business acquired.
(i) Statements of Operations and Retained Earnings for the twelve
months ended December 31, 1995 and 1994, the four months ended
December 31, 1993 and the twelve months ended August 31, 1993.
(ii) Balance Sheets as of December 31, 1995 and 1994.
(iii) Statements of Cash Flows for the twelve months ended December
31, 1995 and 1994, the four months ended December 31, 1993 and
the twelve months ended August 31, 1993.
(iv) Balance Sheets as of March 31, 1996 and 1995 and Statements of
Operations and Retained Earnings and Cash Flows for the three
months ended March 31, 1996 and 1995.
(b) Pro forma financial information.
(i) Combined Statements of Operations for the twelve months ended
July 2, 1995 and the nine months ended March 31, 1996.
(ii) Combined Balance Sheets as of March 31, 1996.
(c) Exhibits.
23(a) Consent of Independent Auditors.
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[KPMG PEAT MARWICK LLP-LETTERHEAD]
INDEPENDENT AUDITORS' REPORT
The Board of Directors
Sorep Technology Corp.:
We have audited the accompanying balance sheets of Sorep Technology Corp. as of
December 31, 1995 and 1994, and the related statements of operations and
retained earnings, and cash flows for the years ended December 31, 1995 and
1994, four months ended December 31, 1993, and year ended August 31, 1993.
These financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Sorep Technology Corp. as
of December 31, 1995 and 1994, and the results of its operations and its cash
flows for the years ended December 31, 1995 and 1994, four months ended December
31, 1993, and year ended August 31, 1993, in conformity with generally accepted
accounting principles.
KPMG PEAT MARWICK LLP
June 18, 1996
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SOREP TECHNOLOGY CORP. ITEM 7(A)
For the dates indicated
STATEMENTS OF OPERATIONS & RETAINED EARNINGS
(dollars in thousands)
Twelve months Twelve Months Four Months Twelve Months
Ended Ended Ended Ended
December 31, December 31, December 31, August 31,
1995 1994 1993 1993
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NET SALES $ 5,780 $ 2,394 $ 967 $ 1,263
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COSTS AND EXPENSES:
Cost of sales 4,465 1,686 806 1,046
Selling and administrative expenses 415 362 125 359
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4,880 2,048 931 1,405
EARNINGS (LOSS) FROM OPERATIONS 900 346 36 (142)
Other income, net 20 35 8 21
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EARNINGS (LOSS) BEFORE INCOME TAXES 920 381 44 (121)
Income tax expense 20 0 0 0
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NET EARNINGS (LOSS) $ 900 $ 381 $ 44 $ (121)
BEGINNING RETAINED EARNINGS
(ACCUMULATED DEFICIT) $ (68) $ (449) $ (493) $ (372)
Dividends paid (640) 0 0 0
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ENDING RETAINED EARNINGS
(ACCUMULATED DEFICIT) $ 192 $ (68) $ (449) $ (493)
====================================================================================================================================
See accompanying notes to financial statements.
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SOREP TECHNOLOGY CORP. ITEM 7(A)
For the dates indicated
BALANCE SHEETS
(dollars in thousands)
December 31, December 31,
1995 1994
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ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 165 $ 1,139
Accounts receivable, net 1,033 188
Inventories 476 79
Prepaid expenses 34 0
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TOTAL CURRENT ASSETS 1,708 1,406
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PROPERTY, PLANT AND EQUIPMENT, NET 115 87
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$ 1,823 $ 1,493
==================================================================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 143 $ 100
Accrued liabilities 249 222
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TOTAL CURRENT LIABILITIES 392 322
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STOCKHOLDERS' EQUITY
Common stock 3 3
Paid in capital 1,236 1,236
Retained earnings (accumulated deficit) 192 (68)
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TOTAL STOCKHOLDERS' EQUITY 1,431 1,171
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$ 1,823 $ 1,493
==================================================================================================================================
See accompanying notes to financial statements.
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SOREP TECHNOLOGY CORP. ITEM 7(A)
For the dates indicated
STATEMENTS OF CASH FLOWS
(dollars in thousands)
Twelve months Twelve Months Four Months Twelve Months
Ended Ended Ended Ended
December 31, December 31, December 31, August 31,
1995 1994 1993 1993
- ---------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings (loss) $ 900 $ 381 $ 44 $ (121)
Adjustments to reconcile net earnings
(loss) to net cash provided (used)
by operating activities:
Depreciation 33 31 17 53
Loss on sale of assets 0 64 0 0
Changes in operating assets and liabilities:
Accounts receivable, net (844) 224 (298) (68)
Inventories (398) 3 14 (75)
Prepaid expenses (34) 3 3 0
Accounts payable 43 10 10 (25)
Accrued liabilities 27 (44) 90 176
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NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES (273) 672 (120) (60)
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CASH FLOWS FROM INVESTING ACTIVITIES --
additions to property, plant and equipment (61) 0 0 0
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CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of dividends (640) 0 0 0
Payment of debt to affiliate, net 0 (114) 6 (195)
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NET CASH PROVIDED (USED) BY
FINANCING ACTIVITIES (640) (114) 6 (195)
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NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (974) 558 (114) (255)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 1,139 581 695 950
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CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 165 $ 1,139 $ 581 $ 695
=================================================================================================================================
See accompanying notes to financial statements.
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SOREP TECHNOLOGY CORPORATION
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUSINESS DESCRIPTION
The Company is a manufacturer of hybrid circuits and high temperature board
assemblies used mainly by the oil and gas well service industry to measure and
communicate information concerning down hole well information to surface based
engineers. The Company (prior to its acquisition by LaBarge, Inc.) was owned
55% by Sorep, S.A. and 45% by Schlumberger.
The Company's principal customer is a unit of Schlumberger and accounts for
more than 90% of its sales. Significant related party transactions including
the payment of dividends and royalties existed between the companies in each of
the reporting years. Gross profits derived from such sales are generally
equivalent to those of sales to other companies. All transactions occurred as
if at arms length with the exception of the royalties paid by Sorep to its
owners.
Sales for export accounted for less than 10% of sales in all reporting periods.
FISCAL REPORTING PERIOD
Sorep Technology Corporation (the "Company") uses a fiscal year ending December
31. Prior to fiscal year 1993, the Company used a fiscal year end date August
31.
INCOME RECOGNITION
Sales and related cost of sales are recognized at the time of shipment.
INVENTORIES
Inventories are stated at the lower of cost or market. Costs of raw materials,
work in process and finished goods are determined on a weighted average cost
method.
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment is carried at cost and includes additions and
improvements, which extend the remaining useful life of the assets.
Depreciation is computed on the straight-line method.
INCOME TAXES
Under the asset and liability method of SFAS 109, deferred tax assets and
liabilities are recognized for the estimated future tax consequences
attributable to the differences between the financial statement carrying
amounts of existing assets and liabilities and their respective tax bases.
CASH EQUIVALENTS
The Company considers cash equivalents to be temporary investments which are
readily convertible to cash, such as certificates of deposit, commercial paper
and treasury bills with original maturity of less than three months.
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ITEM 7(A)
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires the use of management's estimates. Actual
results could differ from these estimates.
FAIR VALUE OF FINANCIAL INSTRUMENTS
The carrying amounts of cash, accounts receivable and accounts payable
approximate fair market value due to the short maturity of these instruments.
2. ACCOUNTS RECEIVABLE, NET
Accounts receivable consists of trade receivables from customers for product
shipped and invoiced, but not yet paid. In 1994, an allowance of $53,000 was
provided to reserve for a possible loss on one account while in all other years
such allowance was zero.
3. INVENTORIES
Inventories consist of the following:
(dollars in thousands)
December 31, December 31,
1995 1994
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Raw materials $ 426 $ 29
Work in process 35 35
Finished goods 15 15
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$ 476 $ 79
==============================================================================================
4. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment is summarized as follows:
(dollars in thousands)
December 31, December 31,
1995 1994
- ----------------------------------------------------------------------------------------------
Operating equipment $ 423 $ 365
Furniture and fixtures 31 27
Accumulated depreciation (339) (305)
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$ 115 $ 87
==============================================================================================
Operating equipment is depreciated on useful lives of 5-10 years and furniture
and fixture are depreciated on a 5-year basis.
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ITEM 7(A)
5. EMPLOYEE BENEFIT PLANS
The Company offers no retirement plan for its employees. Under a special
employment agreement, the president of the Company has a one-time retirement
benefit of a lump sum payment of $50,000 which was accrued in fiscal 1994. No
other plans exist.
6. INCOME TAXES
Due to significant operating losses, the Company recorded a 100% valuation
reserve on net operating loss carryforward ("NOLCF"). During subsequent
periods, the net operating loss was used to reduce taxable income with a
corresponding reduction in the valuation reserve. At December 31, 1995, the
valuation reserve was equal to the remaining NOLCF and deferred tax assets.
7. LITIGATION AND CONTINGENCIES
The Company was not involved in any litigation during the reporting periods.
The Company established a reserve of $250,000 in the fiscal year 1993 to cover
the cost to repair certain products previously shipped to one customer. During
subsequent periods, the Company repaired units for this customer under
warranty. The balance of this reserve at December 31, 1994 was $100,000 and at
December 31, 1995 the reserve was zero and no further liability exists.
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SOREP TECHNOLOGY CORP. ITEM 7(A)
STATEMENTS OF OPERATIONS & RETAINED EARNINGS (UNAUDITED)
(dollars in thousands)
Three Months Ended
March 31, March 31,
1996 1995
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NET SALES $ 1,916 $ 638
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COSTS AND EXPENSES:
Cost of sales 1,359 564
Selling and administrative expenses 95 90
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1,454 654
EARNINGS FROM OPERATIONS 462 (16)
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Other income, net 1 17
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EARNINGS BEFORE INCOME TAXES 463 1
Income tax expense 6 0
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NET EARNINGS $ 457 $ 1
BEGINNING RETAINED EARNINGS (ACCUMULATED DEFICIT) $ 192 $ (68)
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ENDING RETAINED EARNINGS (ACCUMULATED DEFICIT) $ 649 $ (67)
=========================================================================================================
See accompanying notes to financial statements.
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SOREP TECHNOLOGY CORP. ITEM 7(A)
BALANCE SHEET (UNAUDITED)
(dollars in thousands)
March 31, March 31,
1996 1995
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ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 823 $ 1,129
Accounts receivable, net 1,029 145
Inventories 646 150
Prepaid expenses 26 10
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TOTAL CURRENT ASSETS 2,524 1,434
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PROPERTY, PLANT AND EQUIPMENT, NET 115 113
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$ 2,639 $ 1,547
======================================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 445 $ 125
Accrued liabilities 306 250
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TOTAL CURRENT LIABILITIES 751 375
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STOCKHOLDERS' EQUITY
Common stock 3 3
Paid in capital 1,236 1,236
Retained earnings (accumulated deficit) 649 (67)
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TOTAL STOCKHOLDERS' EQUITY 1,888 1,172
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$ 2,639 $ 1,547
=======================================================================================================
See accompanying notes to financial statements.
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SOREP TECHNOLOGY CORP. ITEM 7(A)
STATEMENTS OF CASH FLOWS (UNAUDITED)
(dollars in thousands)
Three Months Ended
March 31, March 31,
1996 1995
- ----------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 457 $ 1
Adjustments to reconcile net cash provided
by operating activities:
Depreciation 11 7
Changes in assets and liabilities:
Accounts receivable, net 4 43
Inventories (170) (71)
Prepaid expenses 8 (10)
Accounts payable 302 25
Accrued liabilities 57 28
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NET CASH PROVIDED BY OPERATING ACTIVITIES 669 23
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CASH FLOWS FROM INVESTING ACTIVITIES --
additions to property, plant and equipment (11) (33)
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NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 658 (10)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 165 1,139
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CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 823 $ 1,129
==========================================================================================================
See accompanying notes to financial statements.
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ITEM 7(A)
SOREP TECHNOLOGY CORPORATION
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
1. FINANCIAL STATEMENTS - BASIS OF PREPARATION
The balance sheet at March 31, 1996 and 1995 and the related statements of
operations and retained earnings, and cash flows for the three months ended
March 31, 1996 and 1995 have been prepared by Sorep Technology Corporation (the
"Company") without audit. In the opinion of management, adjustments of a
normal and recurring nature necessary to present fairly the financial position
of the results of operations and cash flows for the aforementioned periods have
been made.
Certain information and footnote disclosures normally included in financial
statements prepared in conformity with generally accepted accounting principles
have been condensed or omitted. These financial statements should be read in
conjunction with the audited financial statements and notes thereto for the
fiscal year ended December 31, 1995 included in this Form 8-K-A.
2. BUSINESS DESCRIPTION
Prior to March 31, 1995, the Company's principal product consisted of hybrid
circuits only. Beginning in the quarter ended March 31, 1995, the Company
began developing high temperature assemblies to compliment its hybrid circuit
products. Limited sales of these products occurred during the quarter then
ended and therefore, costs associated with new employment caused losses.
3. INVENTORIES
Inventories consist of the following:
(dollars in thousands)
March 31, March 31,
1996 1995
- --------------------------------------------------------------------------------------------------
Raw materials $ 472 $ 110
Work in process 146 34
Finished goods 28 6
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$ 646 $ 150
==================================================================================================
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4. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment is summarized as follows:
(dollars in thousands)
March 31, March 31,
1996 1995
- -------------------------------------------------------------------------------------------
Operating equipment $ 433 $ 398
Furniture and fixtures 31 27
Less accumulated depreciation (349) (312)
- -------------------------------------------------------------------------------------------
$ 115 $ 113
===========================================================================================
Operating equipment is depreciated utilizing useful lives ranging from 5-10
years and furniture and fixtures are depreciated on a 5-year basis.
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ITEM 7(B)
UNAUDITED PRO FORMA COMBINED FINANCIAL INFORMATION
The following unaudited pro forma combined financial information reflects the
acquisition of Sorep Technology Corp. which was consummated on May 15, 1996 and
the incurrence of indebtedness by the Company in connection therewith , as of
the beginning of the period presented for pro forma statements of operation
purposes and on March 31, 1996 for pro forma balance sheet purposes. This
information is presented for comparative purposes only and is not necessarily
indicative of the combined results of operations in the future or of what the
combined results of operations would have been if the foregoing transactions
had actually been consummated as of such date. The unaudited pro forma
combined financial information should be read in connection with the historical
financial statements of the Company.
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LABARGE, INC. ITEM 7(B)
PRO FORMA FINANCIAL STATEMENT
For the dates indicated
STATEMENTS OF OPERATIONS
(dollars in thousands except per share data)
Pro Forma
LaBarge, Inc. Sorep Tech Combined LaBarge, Inc.
Twelve months Twelve months Twelve months Nine months
Ended Ended Ended Ended
July 2, June 30, Pro Forma July 2, March 31,
1995 1995 Adjustments 1995 1996
- --------------------------------------------------------------------------------------------------------------------------
NET SALES $ 61,646 $ 2,905 $ 0 $ 64,551 $49,695
- --------------------------------------------------------------------------------------------------------------------------
COSTS AND EXPENSES:
Cost of sales 51,391 2,495 0 53,886 41,188
Selling and administrative expenses 7,819 361 40 (b) 8,220 5,885
- --------------------------------------------------------------------------------------------------------------------------
59,210 2,856 40 62,106 47,073
EARNINGS FROM OPERATIONS 2,436 49 (40) 2,445 2,622
- --------------------------------------------------------------------------------------------------------------------------
Interest expense 1,725 0 223 (c) 1,948 996
Other income, net 291 46 0 337 211
- --------------------------------------------------------------------------------------------------------------------------
EARNINGS BEFORE INCOME TAXES 1,002 95 (263) 834 1,837
Income tax expense (benefit) (318) 2 (59)(d) (375) 118
- --------------------------------------------------------------------------------------------------------------------------
NET EARNINGS $ 1,320 $ 93 $ (204) $ 1,209 $ 1,719
==========================================================================================================================
NET EARNINGS PER COMMON SHARE $ 0.09 0 0 $ 0.08 $ 0.11
==========================================================================================================================
AVERAGE COMMON SHARES OUTSTANDING 15,223 0 0 15,223 15,281
==========================================================================================================================
Pro Froma
Sorep Tech Combined
Nine months Nine months
Ended Pro Forma Ended
March 31, Adjustments March 31,
1996 1996
- --------------------------------------------------------------------------------------------------------------------------
NET SALES $ 5,675 $ 0 $ 55,370
- --------------------------------------------------------------------------------------------------------------------------
COSTS AND EXPENSES:
Cost of sales 4,085 0 45,273
Selling and administrative expenses 293 31 (b) 6,209
- --------------------------------------------------------------------------------------------------------------------------
4,378 31 51,482
EARNINGS FROM OPERATIONS 1,297 (31) 3,888
- --------------------------------------------------------------------------------------------------------------------------
Interest expense 0 168 (c) 1,164
Other income, net 1 0 212
- --------------------------------------------------------------------------------------------------------------------------
EARNINGS BEFORE INCOME TAXES 1,298 (199) 2,936
Income tax expense (benefit) 24 (71)(d) 213
- --------------------------------------------------------------------------------------------------------------------------
NET EARNINGS $ 1,274 $ (270) $ 2,723
==========================================================================================================================
NET EARNINGS PER COMMON SHARE 0 0 $ 0.18
==========================================================================================================================
AVERAGE COMMON SHARES OUTSTANDING 0 0 15,281
==========================================================================================================================
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LABARGE, INC. ITEM 7(B)
For the dates indicated
BALANCE SHEETS
(dollars in thousands)
Pro Forma
LaBarge, Inc. Sorep Tech Combined
March 31, March 31, Pro Forma March 31,
1996 1996 Adjustments 1996
- -----------------------------------------------------------------------------------------------------------------------------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 447 $ 823 $ 0 $ 1,270
Accounts and notes receivable, net 13,916 1,029 0 14,945
Inventories 17,105 646 0 17,751
Prepaid expenses 402 26 0 428
Deferred tax assets, net 758 0 0 758
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 32,628 2,524 0 35,152
- -----------------------------------------------------------------------------------------------------------------------------------
MARKETABLE SECURITIES, AT COST 250 0 0 250
PROPERTY, PLANT AND EQUIPMENT, NET 3,086 115 0 3,201
DEFERRED TAX ASSETS, NET 2,492 0 0 2,492
OTHER ASSETS, NET 1,911 0 403(a) 2,314
- -----------------------------------------------------------------------------------------------------------------------------------
$ 40,367 $ 2,639 $ 403 $43,409
===================================================================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term borrowings $ 9,000 $ 0 $ 2,291(a) $11,291
Current maturities of long-term debt 778 0 0 778
Accounts payable 8,579 445 0 9,024
Accrued liabilities 3,455 306 0 3,761
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 21,812 751 2,291 24,854
- -----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM OBLIGATION:
Long-term debt 3,521 0 0 3,521
- -----------------------------------------------------------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY
Common stock 153 3 (3)(a) 153
Paid in capital 12,630 1,236 (1,236)(a) 12,630
Retained earnings 2,251 649 (649)(a) 2,251
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 15,034 1,888 (1,888) 15,034
- -----------------------------------------------------------------------------------------------------------------------------------
$ 40,367 $ 2,639 $ 403 $43,409
===================================================================================================================================
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ITEM 7(B)
ADJUSTING ENTRIES TO REFLECT PURCHASE OF NET ASSETS BY LABARGE, INC.
AS IF THE TRANSACTION HAD TAKEN PLACE ON JULY 4, 1994
As of and
For Twelve Months Ended For Nine Months Ended
July 2, 1995 March 31, 1996
Debit Credit Debit Credit
----- ------ ----- ------
(a)Common stock 3
Paid in capital 1,236
Retained Earnings 649
Goodwill 403
Short-term borrowings 2,291
To record the purchase of the net assets of
Sorep Tech by LaBarge, Inc.
(b)Amortization of goodwill 40 31
Other assets, net 40 31
To record the amortization of goodwill based on a
ten (10) year life.
(c)Interest expense 223 168
Short-term borrowings 223 168
To record the interest cost of additional borrowings
(interest rate of 9.75%) used to purchase the assets.
(d)Accrued liabilities 59 71
Income tax expense 59 71
To record the tax benefit or expense of higher interest
cost and goodwill amortization. For the twelve months
ended July 2, 1995, the effective tax rate is 34% as the
benefit would be used to offset federal income tax. For
the nine months ended March 31, 1996, the effective tax
rate is 6% as the expense would be offset by net
operating loss carry-forwards of LaBarge, Inc. on a
combined basis.
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ITEM 7(B)
NOTE TO CONSOLIDATED PROFORMA STATEMENT OF OPERATIONS
Prior to approximately January 1995, the Company's principal products consisted
solely of hybrid circuits mainly used by the oil and gas well service industry.
Beginning in January 1995, the Company began producing high temperature wired
assemblies in addition to hybrid circuits. The increase in volume provided by
these new products which did not cause a significant increase in fixed costs
allowed the Company to increase its profits. This change accounts for the
variance in profits when comparing the twelve months ended July 2, 1995 and the
nine months ended March 31, 1996.
LaBarge, Inc. anticipates that this higher volume will be maintained in the
future. LaBarge anticipates that the cost structure will increase as the
Company pursues new market opportunities and implements various systems changes
within LaBarge/STC, Inc. and therefore somewhat lower profits can be expected
in the near term from this operation.
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SIGNATURES
Pursuant to the requirements of the Securities Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
LABARGE, INC.
Date: July 22, 1996 By: /s/ Craig E. LaBarge
---------------------------------
Craig E. LaBarge
President
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