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EXHIBIT 99.2
VERSA TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS*
JUNE 30, MARCH 31,
1997 1997
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ASSETS
CURRENT ASSETS
Cash and cash equivalents.............................................. $ 1,150 $ 1,127
Receivables, net of allowances......................................... 14,001 13,203
Inventories............................................................ 11,876 11,501
Prepaid expenses and taxes............................................. 1,262 1,467
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Total current assets.............................................. 28,289 27,298
PROPERTY, PLANT, AND EQUIPMENT**......................................... 23,463 23,376
INTANGIBLES.............................................................. 11,005 11,127
OTHER ASSETS............................................................. 176 190
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$ 62,933 $61,991
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LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term debt........................................................ $ -- $ 2,981
Accounts payable....................................................... 5,176 3,843
Accrued expenses....................................................... 4,535 4,682
Income taxes........................................................... 1,301 317
Employee stock purchase and payroll savings plan....................... 87 47
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Total current liabilities......................................... 11,099 11,870
DEFERRED INCOME TAXES.................................................... 2,020 2,059
DEFERRED PENSION, DEFERRED COMPENSATION AND POSTRETIREMENT BENEFITS
EXPENSE................................................................ 3,078 2,936
SHAREHOLDERS' EQUITY..................................................... 46,736 45,126
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$ 62,933 $61,991
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* In thousands of dollars. March 31, 1997 figures condensed from audited
financial statements.
** Net of accumulated depreciation of $26,460,000 at June 30, 1997 and
$25,570,000 at March 31, 1997.
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VERSA TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)*
THREE MONTHS ENDED
JUNE 30,
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1997 1996
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NET SALES................................................................. $27,057 $19,365
Cost of Sales........................................................... 19,524 14,000
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GROSS PROFIT.............................................................. 7,533 5,365
Selling and administrative expenses....................................... 4,107 2,940
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OPERATING INCOME.......................................................... 3,426 2,425
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OTHER INCOME
Interest (expense) income............................................... (4) 160
Miscellaneous, net...................................................... 42 34
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38 194
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EARNINGS BEFORE INCOME TAXES.............................................. 3,464 2,619
INCOME TAXES.............................................................. 1,351 975
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NET EARNINGS.............................................................. $ 2,113 $ 1,644
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NET EARNINGS PER SHARE.................................................... $ .38 $ 0.29
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Average shares outstanding................................................ 5,581 5,729
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* Amounts are in thousands except earnings per share. Interim results are not
necessarily indicative of full year and are subject to audit.
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VERSA TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)*
THREE MONTHS ENDED
JUNE 30,
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1997 1996
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Cash flows from operating activities:
Net earnings............................................................ $ 2,113 $ 1,644
Depreciation............................................................ 922 848
Amortization............................................................ 126 9
Provision for losses on accounts receivable............................. 21 15
Increase in deferred liabilities........................................ 104 139
(Loss) gain on disposition of equipment................................. (8) 1
(Increase) decrease in current assets other than cash and cash
equivalents.......................................................... (987) 279
Increase (decrease) in current liabilities.............................. 2,210 (207)
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Net cash provided by operating activities.......................... 4,501 2,728
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Cash flows from investing activities:
Capital expenditures.................................................... (1,010) (1,704)
Other................................................................... 16 24
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Net cash used in investing activities.............................. (994) (1,680)
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Cash flows from financing activities:
Net payments under line of credit agreement............................. (2,981) --
Dividends paid.......................................................... (558) (580)
Purchase of treasury stock.............................................. -- (3,105)
Sale of stock under option plans........................................ 55 109
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Net cash used in financing activities.............................. (3,484) (3,576)
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Increase (decrease) in cash and cash equivalents.......................... 23 (2,528)
Cash and cash equivalents at beginning of period.......................... 1,127 14,746
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Cash and cash equivalents at end of period................................ $ 1,150 $12,218
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Supplemental Disclosures of Cash Flow Information
Cash paid during period for:
Interest................................................................ $ 4 --
Income taxes............................................................ $ 405 $ 356
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* Amounts are in thousands.
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VERSA TECHNOLOGIES, INC.
NOTES TO FINANCIAL STATEMENTS
1. ACCOUNTING POLICIES --
The consolidated balance sheet as of June 30, 1997 and the consolidated
statements of earnings and cash flows for the three-month periods ended June 30,
1997 and 1996 are unaudited. In the opinion of management, all adjustments
necessary for a fair presentation of such financial statements have been
included. Such adjustments consisted only of normal recurring items. Interim
results are not necessarily indicative of results for a full year.
The financial statements and notes are presented as permitted by Form 10-Q,
and do not contain certain information included in the annual financial
statements and notes of Versa Technologies, Inc. and subsidiaries for the year
ended March 31, 1997.
2. INVENTORIES --
Interim inventories are based on perpetual records which are partially
verified by interim physical counts.
3. INTANGIBLES --
Intangibles include $797,000 relating to pre-1970 acquisitions that are not
being amortized. Included in intangible assets at June 30, 1997 was $10.2
million which is related to the acquisition of Eder Industries, Inc. (See Note
6). Goodwill of $8.1 million represented the excess of the acquisition cost over
the fair value of net assets acquired and is amortized on a straight-line basis
over 40 years. Other acquired intangibles (principally customer or employment
related items) were $2.1 million and are being amortized on a straight-line
basis over periods ranging from 3 to 40 years. Amortization expenses for the
quarter ended June 30, 1997 for the above items was approximately $126,000.
4. SHORT-TERM DEBT --
At June 30, 1997, the Company had no borrowings under a $15 million
unsecured line of credit agreement. The line bears interest at a variable rate
based on the current thirty-day LIBOR rate plus 75 basis points. The line of
credit renews annually on July 31.
5. SHAREHOLDERS' EQUITY --
Shareholders' equity is composed of the following elements (in thousands):
JUNE 30, MARCH 31,
1997 1997
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Common stock, par value $.01 per share..................... $ 61 $ 61
Additional paid-in capital................................. 18,649 18,648
Retained earnings.......................................... 34,523 32,968
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53,233 51,677
Less treasury shares at cost............................... 6,497 6,551
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$ 46,736 $45,126
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Total shares of common stock outstanding net of treasury shares was
5,584,458 at June 30, 1997 and 5,580,533 at March 31, 1997.
During the three months ended June 30, 1997, 3,905 shares of treasury stock
were re-issued under the provision of the Company's 1982 Incentive Stock Option
Plan (the 1982 Plan), the Company's 1992 Incentive Stock Option Plan (the 1992
Plan) and the Company's 1996 Employee Stock Purchase and Payroll Savings
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VERSA TECHNOLOGIES, INC.
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
Plan (the 1996 Plan). Treasury stock cost basis in excess of the proceeds
received was charged to additional paid-in capital.
As of June 30, 1997, 76,650 shares of common stock were reserved for issue
under the Company's 1982 Plan; 486,125 shares were reserved for issue under the
Company's 1992 Plan; 30,643 shares were reserved for issue under the Company's
1996 Plan; and 30,000 shares were reserved for non-qualified stock options held
by outside directors and an outside officer of the Company.
During the three months ended June 30, 1997, retained earnings was credited
with net income of $2,113,000 and charged with $558,000 for dividends paid.
6. EARNINGS PER SHARE CALCULATION --
Earnings per share have been computed on the basis of weighted average
shares outstanding during the respective interim periods. Common share
equivalents were excluded because their dilutive effect is not significant.
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