1
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 QUARTERLY PERIOD ENDED DECEMBER 31, 2000 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 NO. 0-147
HICKOK INCORPORATED
- --------------------------------------------------------------------------------
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
OHIO 34-0288470
- -------------------------------- --------------------------------------
(STATE OR OTHER JURISDICTION OF (IRS EMPLOYER IDENTIFICATION NO.)
INCORPORATION OR ORGANIZATION)
10514 DUPONT AVENUE; CLEVELAND, OHIO 44108
- ------------------------------------------------------------------------------
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER INCLUDING AREA CODE (216) 541-8060
- ------------------------------------------------------------------------------
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 THE
FILING REQUIREMENTS FOR THE PAST 90 DAYS.
YES X NO
----- -----
AS OF FEBRUARY 14, 2001, 762,884 HICKOK INCORPORATED CLASS A COMMON
SHARES AND 454,866 CLASS B COMMON SHARES WERE OUTSTANDING.
2
FORM 10-Q
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS:
HICKOK INCORPORATED
CONSOLIDATED INCOME STATEMENTS
(Unaudited)
Three months ended
December 31,
---------------------
2000 1999
---------- ----------
Net Sales
Product Sales $3,331,559 $5,124,392
Service Sales 422,737 256,227
---------- ----------
Total Net Sales 3,754,296 5,380,619
Costs and Expenses:
Cost of Products Sold 2,148,036 2,827,269
Cost of Services Sold 299,622 209,373
Product Development 590,734 708,633
Operating Expenses 1,234,341 1,287,638
Interest Charges 18,353 14,947
Other Income (7,227) (15,632)
---------- ---------
4,283,859 5,032,228
---------- ---------
Income (Loss) before
Income Taxes (529,563) 348,391
Income (Recovery of) taxes (185,000) 122,000
---------- ----------
Net Income (Loss) $ (344,563) $ 226,391
========== ==========
EARNINGS PER COMMON SHARE:
Net Income (Loss) $ (.28) $ .19
========== ==========
EARNINGS PER COMMON SHARE
ASSUMING DILUTION:
Net Income (Loss) $ (.28) $ .19
========== ==========
Dividends per Common Share $ - 0 - $ - 0 -
========== ==========
See Notes to Consolidated Financial Statements.
(2)
3
HICKOK INCORPORATED
CONSOLIDATED BALANCE SHEETS
December 31, September 30, December 31,
2000 2000 1999
------------ ------------- ------------
(Unaudited) (Note) (Unaudited)
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents $ 264,530 $ 313,553 $ 700,527
Trade Accounts Receivable - Net 3,312,906 3,020,754 3,284,391
Inventories 5,589,836 5,860,217 5,664,132
Deferred Income Taxes 400,800 400,800 315,900
Prepaid Expenses 93,629 34,608 87,093
Refundable Income Taxes 188,276 261,833 199,624
----------- ----------- ------------
TOTAL CURRENT ASSETS 9,849,977 9,891,765 10,251,667
----------- ----------- ------------
PROPERTY, PLANT AND EQUIPMENT
Land 229,089 229,089 299,089
Buildings 1,486,845 1,486,845 1,565,021
Machinery and Equipment 3,765,870 3,706,199 4,259,162
----------- ----------- -----------
5,481,804 5,422,133 6,053,272
Less: Allowance for Depreciation 3,592,856 3,474,290 3,684,982
----------- ----------- ----------
TOTAL PROPERTY - NET 1,888,948 1,947,843 2,368,290
----------- ----------- -----------
OTHER ASSETS
Goodwill - Net of Amortization 1,771,943 1,799,999 1,884,440
Deferred Charges - Net of Amortization 4,252 10,552 29,452
Deferred Income Taxes 114,400 114,400 -
Deposits 2,050 2,050 1,750
----------- ----------- -----------
TOTAL OTHER ASSETS 1,892,645 1,927,001 1,915,642
----------- ----------- -----------
TOTAL ASSET $13,631,570 $13,766,609 $14,535,599
=========== =========== ===========
NOTE: Amounts derived from audited financial statements previously filed with
the Securities and Exchange Commission.
See Notes to Consolidated Financial Statements.
(3)
4
FORM 10-Q
December 31, September 30, December 31,
2000 2000 1999
------------ ------------- ------------
(Unaudited) (Note) (Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Short-term Financing $ 1,093,000 $ 668,000 $ -
Current Portion of Long-term debt 40,128 40,128 612,128
Trade Accounts Payable 578,325 401,806 559,683
Accrued Payroll & Related Expenses 393,925 443,646 376,951
Accrued Expenses 171,268 207,750 310,388
Accrued Income Taxes 22,202 207,202 298,757
----------- ----------- -----------
TOTAL CURRENT LIABILITIES 2,298,848 1,968,532 2,157,907
----------- ----------- -----------
DEFERRED INCOME TAXES - - 41,500
----------- ----------- -----------
LONG-TERM DEBT 35,063 155,855 -
----------- ----------- -----------
STOCKHOLDERS' EQUITY
Class A, $1.00 par value;
authorized 3,750,000 shares; 762,884
shares outstanding (744,884 shares
at December 31, 1999) excluding
9,586 shares in treasury 762,884 762,884 744,884
Class B, $1.00 par value;
authorized 1,000,000 shares;
454,866 shares outstanding
excluding 20,667 shares in treasury 454,866 454,866 454,866
Contributed Capital 993,803 993,803 948,803
Retained Earnings 9,086,106 9,430,669 10,187,639
----------- ----------- -----------
TOTAL STOCKHOLDERS' EQUITY 11,297,659 11,642,222 12,336,192
----------- ----------- -----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $13,631,570 $13,766,609 $14,535,599
=========== =========== ===========
(4)
5
HICKOK INCORPORATED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED DECEMBER 31,
(Unaudited)
2000 1999
------------ ------------
Cash Flows from Operating Activities:
Cash received from customers $ 3,462,144 $ 5,473,519
Cash paid to suppliers and employees (3,924,546) (4,906,943)
Interest paid (18,362) (5,803)
Interest received 1,272 8,704
Income taxes (paid) refunded 73,557 -
------------ ------------
Net Cash Provided by (used in)
Operating Activities (403,935) 569,477
Cash Flows from Investing Activities:
Capital expenditures (59,671) (285,921)
Payments for business purchased - (78,192)
------------ ------------
Net Cash Used in
Investing Activities (59,671) (364,113)
Cash Flows from Financing Activities:
Increase (Decrease) in short-term financing 425,000 379,512
Decrease in long-term financing (8,417) (417,928)
------------ ------------
Net Cash Provided By (used in)
Financing Activities 416,583 (38,416)
------------ ------------
Net Increase (decrease) in cash and
cash equivalents (49,023) 166,948
Cash and cash equivalents at beginning
of year 313,553 533,579
------------ ------------
Cash and cash equivalents at end
of first quarter $ 264,530 $ 700,527
------------ ------------
See Notes to Consolidated Financial Statements.
(5)
6
FORM 10-Q
2000 1999
------------ ------------
Reconciliation of Net Income (Loss) to Net
Cash Provided by Operating Activities:
Net Income (Loss) $ (344,563) $ 226,391
Adjustments to reconcile net income (loss)
to net cash provided by operating
activities:
Depreciation and amortization 152,922 176,260
Changes in assets and liabilities:
Decrease (Increase) in accounts
receivable (292,152) 92,900
Decrease (Increase) in inventories 270,381 43,966
Decrease (Increase) in prepaid
expenses (59,021) (35,524)
Decrease (Increase) in refundable
income taxes 73,557 -
Increase (Decrease) in trade
accounts payable 176,519 (123,267)
Increase (Decrease) in accrued
payroll and related expenses (49,721) (63,156)
Increase (Decrease) in accrued
expenses (36,482) 129,907
Increase (Decrease) in other long-term
liabilities (112,375) -
Increase (Decrease) in accrued
income taxes (185,000) 122,000
----------- -----------
Total Adjustments (61,372) 343,086
----------- -----------
Net Cash Provided by (used in)
Operating Activities $ (405,935) $ 569,477
=========== ===========
(6)
7
FORM 10-Q
HICKOK INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
DECEMBER 31, 2000
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, they 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 ended December
31, 2000 are not necessarily indicative of the results that may be
expected for the year ended September 30, 2001. For further
information, refer to the consolidated financial statements and
footnotes thereto included in the Company's annual report on Form 10-K
for the year ended September 30, 2000.
2. INVENTORIES
Inventories are valued at the lower of cost or market and consist of
the following:
December 31, Sept. 30, December 31,
2000 2000 1999
----------- ----------- -----------
Components $ 2,920,926 $ 2,950,611 $ 3,481,404
Work-in-Process 1,562,613 1,821,531 1,379,764
Finished Product 1,106,297 1,088,075 802,964
----------- ----------- -----------
$ 5,589,836 $ 5,860,217 $ 5,664,132
=========== =========== ===========
3. CAPITAL STOCK, TREASURY STOCK, CONTRIBUTED CAPITAL AND STOCK OPTIONS
Under the Company's Key Employees Stock Option Plans (collectively the
"Employee Plans"), incentive stock options, in general, are exercisable
for up to ten years, at an exercise price of not less than the market
price on the date the option is granted. Non-qualified stock options
may be granted at such exercise price and such other terms and
conditions as the Compensation Committee of the Board of Directors may
determine. No options may be granted at a price less than $2.925.
Options for 148,400 Class A shares were outstanding at December 31,
2000 (116,300 shares at September 30, 2000 and 134,300 shares at
December 31, 1999) at prices ranging from $3.125 to $17.25 per share.
Options for 32,100 shares and 27,800 shares were granted during the
three month period ended December 31, 2000 and December 31, 1999
respectively, at a price of $3.125 and $5.00 per share respectively,
all options are exercisable.
(7)
8
FORM 10-Q
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED
No other options were granted, exercised or cancelled during the
periods presented under the Employee Plans.
The Company's Outside Directors Stock Option Plans (collectively the
"Directors Plans"), provide for the automatic grant of options to
purchase up to 51,000 shares of Class A Common Stock to members of the
Board of Directors who are not employees of the Company, at the fair
market value on the date of grant. Options for 30,000 Class A shares
were outstanding at December 31, 2000 (30,000 shares at September 30,
2000 and 36,000 shares at December 31, 1999) at prices ranging from
$7.125 to $18.00 per share. All outstanding options under Directors
Plans become fully exercisable on February 25, 2003.
Unissued shares of Class A common stock (633,266 shares) are reserved
for the share-for-share conversion rights of the Class B common stock
and stock options under the Employee Plans and the Directors Plans.
(8)
9
FORM 10-Q
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - continued
4. EARNINGS PER COMMON SHARE
Earnings per common share are based on the provisions of FAS Statement
No. 128, "Earnings per Share." Accordingly, the adoption of this
statement did not affect the Company's results of operations, financial
position or liquidity. The effects of applying FAS No. 128 on earnings
per share and required reconciliations are as follows:
Three Months Ended
December 31,
2000 1999
---------- ----------
BASIC EARNINGS PER SHARE
Income (Loss) available
to common stockholders $ (344,563) $ 236,391
Shares denominator 1,217,750 1,199,750
Per share amount $ (.28) $ .19
========== ==========
EFFECT OF DILUTIVE
SECURITIES
Average shares
outstanding 1,217,750 1,199,750
Stock options - 13,858
---------- ----------
1,217,750 1,213,608
DILUTED EARNINGS PER SHARE
Income (Loss) available
to common stockholders $ (344,563) $ 236,391
Per share amount $ (.28) $ .19
=========== ==========
Options to purchase 178,400 and 124,500 shares of common stock during
the first quarter of fiscal 2001 and the first quarter of fiscal 2000,
respectively, at prices ranging from $3.125 to $18.00 per share were
outstanding but were not included in the computation of diluted
earnings per share because the option's effect was antidilutive or the
exercise price was greater than the average market price of the common
share.
(9)
10
FORM 10-Q
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED
5. PURCHASE
On February 17, 1998, the Company purchased certain assets of Waekon
Industries, Inc. which has been accounted for under the purchase method
of accounting. The Company initially paid $2,221,302 for the assets
consisting of accounts receivable ($504,282), inventory ($719,244),
prepaid and other assets ($42,786), machinery and equipment ($380,100),
assumption of current liabilities ($425,895), and goodwill
($1,000,785). The Company also recorded as goodwill closing costs
related to the purchase ($205,216) and the present value of an earn out
contract ($585,892). In December 1999 the Company renegotiated and
accelerated the terms of the future earn out contract incurring an
additional amount due of $78,192 deemed to be additional purchase price
and recorded as an increase in goodwill. The revised earn out balance
($567,300) was classified as a current liability at December 31, 1999.
Goodwill is being amortized over 20 years.
6. SEGMENT AND RELATED INFORMATION
The Company has adopted SFAS No. 131, Disclosures about Segments of an
Enterprise and Related Information, which changes the way the Company
reports the information about its operating segments.
The Company's four business units have separate management teams and
infrastructures that offer different products and services. The
business units have been aggregated into two reportable segments: 1.)
indicators and gauges and 2.) automotive related diagnostic tools and
equipment.
INDICATORS AND GAUGES
This segment consists of products manufactured and sold primarily to
companies in the aircraft and locomotive industry. Within the aircraft
market, the primary customers are those companies that manufacture
business and pleasure aircraft. Within the locomotive market,
indicators and gauges are sold to both original equipment manufacturers
and to operators of railroad equipment.
AUTOMOTIVE DIAGNOSTIC TOOLS AND EQUIPMENT
This segment consists primarily of products designed and manufactured
to support the servicing of automotive electronic systems. These
products are sold to the aftermarket using a variety of distribution
methods. The acquisition of Waekon Industries in 1998 added significant
new products and distribution sources for the aftermarket.
Included in this segment are fastening control products used by a large
automobile manufacturer to monitor and control the nut running process
in an assembly plant. This equipment provides high quality threading
applications. The product was added in fiscal 1994 when the Company
acquired the fastening systems business from Allen-Bradley Company.
(10)
11
FORM 10-Q
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - CONTINUED
INFORMATION BY INDUSTRY SEGMENT IS SET FORTH BELOW:
Three months ended
December 31,
--------------------------------
2000 1999
----------- --------
NET REVENUE
Indicators and Gauges $ 567,546 $ 531,962
Automotive Diagnostic Tools and Equipment 3,186,750 4,848,657
----------- -----------
$ 3,754,296 $ 5,380,619
=========== ===========
INCOME (LOSS) FROM OPERATIONS
Indicators and Gauges $ (22,544) $ 95,753
Automotive Diagnostic Tools and Equipment 925 937,876
General Corporate Expenses (507,944) (685,238)
----------- -----------
$ (529,563) $ 348,391
============ ===========
ASSET INFORMATION
Indicators and Gauges $ 1,207,774 $ 1,262,814
Automotive Diagnostic Tools and Equipment 9,488,576 9,804,139
Corporate 2,935,220 3,468,646
----------- -----------
$13,631,570 $14,535,599
=========== ===========
GEOGRAPHICAL INFORMATION
Included in the consolidated financial
statements are the following amounts
related to geographical locations:
REVENUE:
United States $ 3,543,342 $ 5,244,986
Canada 147,449 80,694
Other foreign countries 63,505 54,939
----------- -----------
$ 3,754,296 $ 5,380,619
=========== ===========
(11)
12
FORM 10-Q
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Results of Operations,First Quarter(October 1, 2000 through December 31,2000)
Fiscal 2001 Compared to First Quarter Fiscal 2000
- --------------------------------------------------------------------------------
REPORTABLE SEGMENT INFORMATION
The Company has determined that it has two reportable segments: 1) indicators
and gauges and 2) automotive related diagnostic tools and equipment. The
indicators and gauges segment consists of products manufactured and sold
primarily to companies in the aircraft and locomotive industry. Within the
aircraft market, the primary customers are those companies that manufacture
business and pleasure aircraft. Within the locomotive market, indicators and
gauges are sold to both original equipment manufacturers and to operators of
railroad equipment. Revenue in this segment was $567,546 and $531,962 for the
first quarter of fiscal 2001 and fiscal 2000, respectively. The automotive
diagnostic tools and equipment segment consists primarily of products designed
and manufactured to support the servicing of automotive electronic systems.
These products are sold both directly to the end user and through the
aftermarket using a variety of distribution methods. Included in this segment
are fastening control products used primarily by a large automobile manufacturer
to monitor and control the nut running process in an assembly plant. Revenue in
this segment was $3,186,750 and $4,848,657 for the first quarter of fiscal 2001
and fiscal 2000, respectively.
RESULTS OF OPERATIONS
Product sales for the quarter ended December 31, 2000 were $3,331,559 versus
$5,124,392 for the quarter ended December 31, 1999. The 35% decrease in product
sales during the current quarter was volume related due primarily to a decrease
in shipment of automotive diagnostic products, specifically automotive gas cap
testers. In last year's first fiscal quarter the Company shipped approximately
$1,400,000 of gas cap testers to the state of Texas which implemented new
emissions testing procedures effective in early calendar 2000. There were no
similar sales of emissions products in the current fiscal quarter though the
Company anticipates such shipments to other states in the second half of fiscal
2001. Despite the decrease in product sales in the first quarter of fiscal 2001,
the Company anticipates that product sales for all of fiscal 2001 will increase
approximately 10% over the prior year based on the automotive aftermarket's
positive response to several new product offerings.
Service sales for the quarter ended December 31, 2000 were $422,737 versus
$256,227 for the quarter ended December 31, 1999. The increase was both volume
and price related applicable to chargeable repairs. The current level of service
sales is expected to continue for the balance of the fiscal year.
Cost of products sold in the first quarter of fiscal 2001 was $2,148,036 or
64.5% of sales as compared to $2,827,269 or 55.2% of sales in the first quarter
of fiscal 2000. This increase in the cost of products sold percentage was due in
part to under-absorbed overhead at the manufacturing level due to the 35%
decrease in product sales experienced during the quarter. The current cost of
products sold percentage is anticipated to decrease during the balance of the
fiscal year due to an improvement in plant utilization.
(12)
13
FORM 10-Q
Cost of services sold in the first quarter of fiscal 2001 was $299,622 or 70.9%
of sales as compared to $209,373 or 81.7% of sales in the first quarter of
fiscal 2000. This decrease in the cost of services sold percentage is primarily
due to improved sales pricing.
Product development expenses were $590,734 in the first quarter of fiscal 2001
or 17.7% of product sales as compared to $708,633 or 13.8% of product sales in
the first quarter of fiscal 2000. The dollar decrease reflects continued
efficiencies from ongoing technology improvements in engineering systems and
procedures. The percentage increase was due to a 35% reduction in the level of
product sales. The current level of product development expenses is expected to
continue for the balance of the fiscal year.
Operating expenses were $1,234,341 or 32.9% of total sales in the first quarter
of fiscal 2001 versus $1,287,638 or 23.9% of total sales for the same period a
year ago. The percentage increase was due to a 30% reduction in the level of
total sales for the current quarter. The current level of operating expenses is
expected to continue for the remainder of the fiscal year.
Interest expense was $18,353 in the first quarter of fiscal 2001 which compares
with $14,947 in the first quarter of fiscal 2000. This was due to an increase in
short term borrowings to fund operating requirements.
Other income decreased by $8,405 during the first quarter of fiscal 2001 due to
a reduction in interest income on short term investments caused by the use of
cash to fund working capital requirements.
The net loss in the first quarter of fiscal 2001 was $344,563 which compares
with a net income of $226,391 in the first quarter of fiscal 2000. The change
was primarily due to a $1,626,000 reduction in sales.
Management anticipates that an increase in sales combined with operating
efficiencies due, in part, to the restructuring of the Kirkwood, Pennsylvania
operation in fiscal 2000 will generate sufficient taxable income during the
carryforward period to fully realize deferred tax benefits thereby reducing
future federal income taxes payable.
Unshipped customer orders as of December 31, 2000 were $3,609,000 versus
$3,618,000 at December 31, 1999. Almost all of the backlog is expected to be
shipped in the balance of fiscal 2001
LIQUIDITY AND CAPITAL RESOURCES
Total current assets were $9,849,977, $9,891,765 and $10,251,667 at December 31,
2000, September 30, 2000 and December 31, 1999, respectively. The decrease from
December to December is due to a $436,000 decrease in cash used to fund both
operating and non-operating cash requirements.
(13)
14
FORM 10-Q
Working capital as of December 31, 2000 amounted to $7,551,129 as compared with
$8,093,760 a year earlier. The decrease was do to a decrease in cash and an
increase in short term borrowings, both used to fund operating and non-operating
requirements during the period. Current assets were 4.3 times current
liabilities and total cash and receivables were 1.6 times current liabilities.
These ratios compare to 4.8 and 1.8, respectively, at December 31, 1999.
Internally generated funds during the three months ended December 31, 2000 were
a negative $405,935 and were not adequate to fund the Company's primary
non-operating cash requirement consisting of capital expenditures of $59,671.
The Company believes that cash and cash equivalents, together with funds
anticipated to be generated by operations and funds available under the
Company's credit agreement, will provide the liquidity necessary to support its
current and anticipated capital expenditures through the end of fiscal 2001.
Shareholders' equity during the three months ended December 31, 2000 decreased
by $344,563 which was the net loss during the period.
The Company has a credit agreement with its financial lender that provides for a
revolving credit facility of $5,000,000 at December 31, 2000. There was
$1,093,000 outstanding on this credit facility as of December 31, 2000. The
agreement expires at the end of February, 2001 and provides for interest at the
prime commercial rate with a LIBOR option and is unsecured. The Company remains
in compliance with its loan covenants. The Company is in the annual process of
renewing its credit arrangement with its financial lender. Although no assurance
can be given, management of the Company believes that a renewal may be obtained
on terms which are similar to its current credit facility.
YEAR 2000 READINESS DISCLOSURE
The Company has completed its Year 2000 remediation efforts and, since the turn
of the century, has not experienced any significant problems internally or with
suppliers and customers in connection with this event.
(14)
15
FORM 10-Q
FORWARD-LOOKING STATEMENTS
The foregoing discussion includes forward-looking statements relating to the
business of the Company. These forward-looking statements, or other statements
made by the Company, are made based on management's expectations and beliefs
concerning future events impacting the Company and are subject to uncertainties
and factors (including, but not limited to, those specified below) which are
difficult to predict and, in many instances, are beyond the control of the
Company. As a result, actual results of the Company could differ materially from
those expressed in or implied by any such forward-looking statements. These
uncertainties and factors include (a) the Company's dependence upon a limited
number of customers, including Ford and General Motors, (b) the highly
competitive industry in which the company operates, which includes several
competitors with greater financial resources and larger sales organizations, and
(c) the acceptance in the marketplace of new products and/or services developed
or under development by the Company including automotive diagnostic products,
fastening systems products and indicating instrument products, and (d) the
ability of Company to effectively make the transition from primarily serving OEM
customers to serving smaller customers in the automotive aftermarket.
(15)
16
FORM 10-Q
ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company is exposed to certain market risks from transactions that are
entered into during the normal course of business. The Company has not entered
into derivative financial instruments for trading purposes. The Company's
primary market risk exposure relates to interest rate risk. There were no
material changes in the Company's exposure to market risk from September 30,
2000.
PART II. OTHER INFORMATION
ITEM 6: EXHIBITS AND REPORTS ON FORM 8-K:
a) The following exhibit is included herein: (11) Statement re: Computation of
earnings per share.
b) The Company did not file any reports on Form 8-K during the three months
ended December 31, 2000.
SIGNATURE
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.
Date FEBRUARY 14, 2001 HICKOK INCORPORATED
----------------- -------------------
(Registrant)
/S/ E. T. Nowakowski
--------------------
E.T. Nowakowski, Chief Financial Officer
(16)