EXHIBIT 99.1
TRILECTRON INDUSTRIES, INC.
CONDENSED BALANCE SHEETS
ASSETS
(Unaudited)
July 31, December 31,
1996 1995
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Current assets:
Cash $ 74,803 $ 1,591
Accounts receivable, net of
allowance of $33,000 2,746,443 2,009,028
Inventory 7,090,123 4,928,804
Cost and estimated earnings in
excess of billings on un-
completed contracts 490,616
Other 24,868 36,248
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Total current assets 9,936,237 7,466,287
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Property, plant and equipment 909,650 1,043,908
Less accumulated depreciation 659,799 811,729
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Property, plant and equipment,
net 249,851 232,179
Other assets 32,025 72,856
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Total assets $10,218,113 $ 7,771,322
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Revolving line of credit and
notes payable $ 1,850,000 $ 829,914
Current maturities of long-
term debt 156,996 156,996
Trade accounts payable 2,334,587 1,516,429
Accrued expenses and other
current liabilities 851,784 464,777
Billings in excess of costs
and estimated earnings
on uncompleted contracts 183,591
Advances from customers 158 81,909
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Total current liabilities 5,193,525 3,233,616
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Long-term debt 170,099 261,680
Commitments and contingencies:
Shareholders equity:
Common stock 5,000 5,000
Capital in excess of par value 8,300 8,300
Retained earnings 4,841,189 4,262,726
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Total shareholders' equity 4,854,489 4,276,026
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Total liabilities and
shareholders' equity $10,218,113 $ 7,771,322
=========== =============
See notes to consolidated financial statements.
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TRILECTRON INDUSTRIES, INC.
CONDENSED STATEMENTS OF OPERATIONS - UNAUDITED
Nine months ended July 31,
1996 1995
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Net sales $12,007,733 $12,010,514
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Operating costs and expenses:
Cost of sales 8,941,368 10,004,331
Selling, general and administrative
expenses 1,886,006 1,572,984
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Total operating costs and expenses 10,827,374 11,577,315
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Income from operations 1,180,359 433,199
Interest expense (91,458) (44,643)
Interest and other income 109 920
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Income from continuing operations
before income taxes 1,089,010 389,476
Income tax expense 0 0
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Net income $ 1,089,010 $ 389,476
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See notes to consolidated condensed financial statements.
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TRILECTRON INDUSTRIES, INC.
CONDENSED STATEMENTS OF CASH FLOWS - UNAUDITED
Nine months ended July 31,
1996 1995
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Cash flows from operating activities:
Net income $ 1,089,010 $ 389,476
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Adjustments to reconcile net income
to cash provided by operating
activities:
Depreciation and amortization 48,923 70,645
(Increase) decrease in operating assets
Restricted cash 0 520
Accounts receivable (1,007,074) (360,376)
Inventory (1,844,715) (772,878)
Costs and estimated earnings in
excess of billings 65,544 338,413
Other current assets 164,017 (106,268)
Prepaid royalty fees (29,169) 0
Security deposits and other assets 0 1,308
Increase (decrease) in operating
liabilities
Accounts payable and accrued expenses 1,473,926 860,974
Billings in excess of costs and
earnings on uncompleted contracts 0 0
Advances from customers (248,201) (292,967)
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Total adjustments (1,376,749) (260,629)
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Net cash provided by (used
in) operating activities (287,739) 128,847
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Cash flows from investing activities:
Acquisitions of property, equipment
and improvements (128,012) (59,506)
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Net cash (used in) investing
activities (128,012) (59,506)
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Cash flows from financing activities:
Proceeds from revolving line of credit 1,099,220 450,000
Principal payments on term loan (117,747) (117,747)
Dividend paid (508,147) (389,965)
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Net cash provided by (used in)
financing activities 473,326 (57,712)
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Net Increase in cash 57,575 11,629
Cash, beginning of year 17,228 133,338
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Cash, end of year $ 74,803 $ 144,966
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Supplementary disclosure of cash
flow information:
Interest paid $ 99,259 $ 31,313
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See notes to consolidated condensed financial statements.
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TRILECTRON INDUSTRIES, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS - UNAUDITED
JULY 31, 1996
1. The accompanying unaudited condensed financial statements have been prepared
as interim financial statements as of and for the nine months ended July 31,
1996, consisting of the first seven months of the Company's fiscal 1996 and the
last two months of the Company's fiscal 1995. Therefore, the accompanying
unaudited condensed financial statements do not include all information and
footnotes normally included in annual financial statements and should be read in
conjunction with the financial statements for the year ended December 31, 1995.
In the opinion of management, the unaudited condensed financial statements
contain all adjustments (consisting of only normal recurring accruals) necessary
for a fair presentation of the condensed balance sheets and condensed statements
of operations and cash flow for such interim periods presented. The results of
operations for the nine months ended July 31, 1996 are not necessarily
indicative of the results which may be expected for the entire fiscal year.
2. Inventories are comprised of the following:
JULY 31, 1996 OCTOBER 31, 1995
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Finished products................ $ 662,781 $ 621,032
Work in process.................. 1,593,140 1,070,751
Materials, parts, assemblies
and supplies................... 4,834,202 3,237,021
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Total inventories................ $ 7,090,123 $ 4,928,804
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3. Supplemental disclosures of cash flow information for the nine months ended
July 31, 1996 and 1995 are as follows:
Cash paid for interest was $99,259 and $31,313 in fiscal 1996 and 1995,
respectively.
Fiscal 1996 non-cash, investing and financing activities include
purchases of property, plant and equipment totaling $128,012, proceeds from a
revolving line of credit totaling $1,099,220, $508,147 of dividends paid and
$117,747 of long-term debt payments.
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