UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 10-Q
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2001
(_) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _____________ to _____________
Commission File Number 0 - 23426
---------
REPTRON ELECTRONICS, INC.
-------------------------
(Exact name of registrant as specified in its charter)
Florida 38-2081116
- --------------------------- -----------------------------------
State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or organization
14401 McCormick Drive, Tampa, Florida 33626
- -------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (813) 854-2351
--------------
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 ___
---
6,397,196 shares of common stock issued and outstanding as of November 14, 2001.
- --------- -----------------
REPTRON ELECTRONICS, INC.
INDEX
Page
PART I. FINANCIAL INFORMATION Number
------
Item 1. Financial Statements
Consolidated Statements of Operations - Three months ended
September 30, 2001 and September 30, 2000 and nine months
ended September 30, 2001 and September 30, 2000 3
Consolidated Balance Sheets - September 30, 2001 and
December 31, 2000 4
Consolidated Statement of Shareholders' Equity- Nine months
ended September 30, 2001 and year ended December 31, 2000 5
Consolidated Statements of Cash Flows - Nine months ended
September 30, 2001 and September 30, 2000 6
Notes to Consolidated Financial Statements - September 30,
2001 7
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 9
PART II. OTHER INFORMATION
Item 3. Quantitative and Qualitative Disclosures about Market Risk 11
Item 6. Exhibits and Reports on Form 8-K 12
Signatures 13
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
REPTRON ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
Three months ended Nine months ended
September 30, September 30,
(Unaudited) (Unaudited)
----------------------- -----------------------
2001 2000 2001 2000
---------- ---------- ---------- ----------
Net sales $ 84,913 $ 152,653 $ 318,470 $ 416,526
Cost of goods sold 72,875 127,613 282,541 348,104
---------- ---------- ---------- ----------
Gross profit 12,038 25,040 35,929 68,422
Selling, general and administrative expenses 15,266 18,449 52,601 53,390
---------- ---------- ---------- ----------
Operating earnings (loss) (3,228) 6,591 (16,672) 15,032
Interest expense, net 2,605 3,066 8,493 8,117
---------- ---------- ---------- ----------
Earnings (loss) before income taxes (5,833) 3,525 (25,165) 6,915
Income tax provision (benefit) (2,159) 1,632 (9,369) 3,252
---------- ---------- ---------- ----------
Net earnings (loss) $ (3,674) $ 1,893 $ (15,796) $ 3,663
========== ========== ========== ==========
Net earnings (loss) per common share - basic: $ (0.57) $ 0.30 $ (2.47) $ 0.59
========== ========== ========== ==========
Weighted average common shares outstanding - basic 6,397,196 6,282,405 6,386,871 6,229,121
========== ========== ========== ==========
Net earnings (loss) per common share - diluted: $ (0.57) $ 0.27 $ (2.47) $ 0.54
========== ========== ========== ==========
Weighted average common shares outstanding -
diluted 6,397,196 6,973,455 6,386,871 6,837,620
========== ========== ========== ==========
The accompanying notes are an integral part of these financial statements
3
REPTRON ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
ASSETS
(Unaudited)
September 30, December 31,
2001 2000
------ ------
CURRENT ASSETS
Cash and cash equivalents $ 161 $ 3,049
Accounts receivable - trade, net 59,640 100,311
Inventories, net 87,788 124,695
Prepaid expenses and other assets 1,937 2,298
Deferred income tax - 62
Income tax receivable 5,600 -
-------- --------
Total current assets 155,126 230,415
PROPERTY, PLANT & EQUIPMENT - AT COST, NET 29,890 33,051
EXCESS OF COST OVER NET ASSETS ACQUIRED, NET 30,423 31,473
DEFERRED INCOME TAX 3,779 -
OTHER ASSETS 2,842 2,528
-------- --------
$222,060 $297,467
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable - trade $ 32,295 $ 65,199
Current portion of long-term obligations 1,634 2,476
Accrued expenses 5,970 11,941
Income taxes payable - 1,230
-------- --------
Total current liabilities 39,899 80,846
NOTE PAYABLE TO BANK 62,883 80,270
LONG-TERM OBLIGATIONS, less current portion 81,078 82,576
SHAREHOLDERS' EQUITY
Preferred Stock - authorized 15,000,000 shares
of $.10 par value; no shares issued - -
Common Stock - authorized 50,000,000 shares
of $.01 par value; issued and outstanding,
6,397,196 and 6,359,257 shares, respectively 64 64
Additional paid-in capital 23,083 22,862
Retained earnings 15,053 30,849
-------- --------
38,200 53,775
-------- --------
$222,060 $297,467
======== ========
The accompanying notes are an integral part of these financial statements
4
REPTRON ELECTRONICS, INC.
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
(In thousands, except share data)
Common Stock
------------------ Additional Total
Shares Par Paid-In Retained Shareholders'
Outstanding Value Capital Earnings Equity
----------- ----- ---------- --------- -------------
Balance at December 31, 1999 6,167,119 $ 62 $ 21,740 $ 25,158 $ 46,960
Exercise of stock options 192,138 2 1,122 - 1,124
Net earnings - - - 5,691 5,691
--------- ---- -------- --------- --------
Balance at December 31, 2000 6,359,257 64 22,862 30,849 53,775
Exercise of stock options (Unaudited) 37,939 - 221 - 221
Net loss (Unaudited) - - - (15,796) (15,796)
--------- ---- -------- --------- --------
Balance at September 30, 2001 (Unaudited) 6,397,196 $ 64 $ 23,083 $ 15,053 $ 38,200
========= ==== ======== ========= ========
The accompanying notes are an integral part of this financial statement
5
REPTRON ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Nine months ended
September 30,
(Unaudited)
--------------------
2001 2000
--------- --------
Increase (decrease) in cash and cash equivalents:
Cash flows from operating activities:
Net earnings (loss) $(15,796) $ 3,663
Adjustments to reconcile net earnings to net cash provided by
(used in) operating activities:
Depreciation and amortization 7,774 7,873
Deferred income taxes (3,717) 230
Loss on disposal of assets - 25
Change in assets and liabilities:
Accounts receivable - trade 40,671 (23,301)
Inventories 36,907 (34,614)
Prepaid expenses and other current assets 361 (620)
Other assets (856) (449)
Accounts payable - trade (32,904) 13,717
Accrued expenses (5,971) 1,038
Income taxes payable/receivable (6,830) 680
-------- --------
Net cash provided by (used in) operating activities 19,639 (31,758)
-------- --------
Cash flows from investing activities:
Purchases of property, plant and equipment (3,021) (6,924)
-------- --------
Net cash used in investing activities (3,021) (6,924)
-------- --------
Cash flows from financing activities:
Proceeds from exercise of stock options 221 810
Net proceeds (payments) on note payable to bank (17,387) 38,075
Proceeds from long term obligations - 4,000
Payments on long term obligations (2,340) (2,525)
-------- --------
Net cash provided by (used in) financing activities (19,506) 40,360
-------- --------
Net increase (decrease) in cash and cash equivalents (2,888) 1,678
Cash and cash equivalents at beginning of period 3,049 108
-------- --------
Cash and cash equivalents at end of period $ 161 $ 1,786
======== ========
Supplemental cash flow information:
Interest paid $ 10,100 $ 8,670
======== ========
Income taxes paid $ 1,178 $ 2,469
======== ========
The accompanying notes are an integral part of these financial statements
6
REPTRON ELECTRONICS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
(Unaudited)
NOTE A -- BASIS OF PRESENTATION
The accompanying consolidated financial statements have been prepared in
accordance with the instructions to Form 10-Q and do not include all the
information and footnote disclosure required by generally accepted accounting
principles for complete financial statements. The consolidated financial
statements as of September 30, 2001, and for the three and nine months ended
September 30, 2001 and September 30, 2000, are unaudited and reflect all
adjustments (consisting only of normal recurring adjustments) which are, in the
opinion of management, necessary for a fair presentation of the financial
position and operating results for the interim periods. The results of
operations for the three and nine months ended September 30, 2001 are not
necessarily indicative of results that may be expected for the year ending
December 31, 2001. The consolidated financial statements should be read in
conjunction with the financial statements and notes thereto, together with
management's discussion and analysis of financial condition and results of
operations, included in the 2000 Form 10-K.
NOTE B - RECENT ACCOUNTING PRONOUNCEMENTS
In July 2001, the Financial Accounting Standards Board (FASB) issued Statement
of Financial Accounting Standards (SFAS) 141, Business Combinations, and SFAS
142, Goodwill and Intangible Assets. SFAS 141 is effective for all business
combinations completed after June 30, 2001. SFAS 142 is effective for the year
beginning January 1, 2002, however, certain provisions of that Statement apply
to goodwill and other intangible assets acquired between July 1, 2001 and the
effective date of SFAS 142.
In July 2001, the FASB issued SFAS No. 143, Accounting for Asset Retirement
Obligations. This statement addresses financial accounting and reporting for
obligations associated with the retirement of tangible long-lived assets and the
associated asset retirement costs. This Statement applies to all entities. It
applies to legal obligations associated with the retirement of long-lived assets
that result from the acquisition, construction, development and (or) the normal
operation of a long-lived asset, except for certain obligations of lessees.
This Statement is effective for financial statements issued for fiscal years
beginning after June 15, 2002.
In August 2001, the FASB issued SFAS No. 144, Accounting for the Impairment or
Disposal of Long-Lived Assets. This statement addresses financial accounting
and reporting for the impairment or disposal of long-lived assets and supersedes
FASB Statement No. 121, Accounting for the Impairment of Long-Lived Assets and
for Long-Lived Assets To Be Disposed Of. The provisions of the statement are
effective for financial statements issued for fiscal years beginning after
December 15, 2001.
The Company is evaluating the impact of the adoption of these standards and has
not yet determined the effect of adoption on its financial position and results
of operations.
NOTE C -- INVENTORIES
Inventories consist of the following (in thousands):
September 30, December 31,
2001 2000
----- ------
Electronic Component Distribution:
Inventories $54,367 $ 85,943
Electronic Manufacturing Services:
Work in process 8,935 13,101
Raw materials 24,486 25,651
------- --------
$87,788 $124,695
======= ========
7
REPTRON ELECTRONICS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
SEPTEMBER 30, 2001
(Unaudited)
NOTE D -- FINANCIAL INFORMATION ABOUT INDUSTRY SEGMENTS
Reptron Electronics, Inc. is a leading electronics manufacturing supply chain
services company operating as a national distributor of electronic components, a
contract manufacturer of electronic products and display solution provider. Our
Electronic Component Distribution customers are in diverse industries including
robotics, telecommunications, computers and computer peripherals, consumer
electronics, healthcare, industrial controls and contract manufacturing. Our
Electronic Manufacturing Services segment manufactures electronic products
according to customer design, primarily for customers in the telecommunications,
healthcare, industrial/instrumentation, banking and office products industries.
As a display solution provider, we provide display design engineering, systems
integration and turnkey manufacturing services.
The following table shows net sales and gross profit by industry segments.
Three months ended Nine months ended
September 30, September 30,
(in thousands) (in thousands)
--------------------------- ----------------------------
2001 2000 2001 2000
---------- ---------- ---------- ----------
Net Sales
Electronic Component Distribution $ 46,016 $ 93,071 $ 184,604 $ 248,966
Electronic Manufacturing Services 38,897 59,582 133,866 167,560
---------- ---------- ---------- ----------
$ 84,913 $ 152,653 $ 318,470 $ 416,526
========== ========== ========== ==========
Gross Profit
Electronic Component Distribution $ 8,649 $ 16,737 $ 23,849 $ 46,387
Electronic Manufacturing Services 3,389 8,303 12,080 22,035
---------- ---------- ---------- ----------
$ 12,038 $ 25,040 $ 35,929 $ 68,422
========== ========== ========== ==========
NOTE E - EARNINGS PER SHARE
The following table sets forth the computation of basic and diluted
net earnings per common share:
Three months ended Nine months ended
September 30, September 30,
----------------------- ----------------------------
2001 2000 2001 2000
---------- ---------- ---------- ----------
Numerator:
Net earnings (loss) (in thousands) $ (3,674) $ 1,893 $ (15,796) $ 3,663
========== ========== ========== ==========
Denominator:
For basic earnings per share -
Weighted average shares 6,397,196 6,282,405 6,386,871 6,229,121
Effect of dilutive securities:
Employee stock options - 691,050 - 608,499
---------- ---------- ---------- ----------
For diluted earnings per share 6,397,196 6,973,455 6,386,871 6,837,620
========== ========== ========== ==========
Net earnings (loss) per common share - basic $ (0.57) $ 0.30 $ (2.47) $ 0.59
========== ========== ========== ==========
Net earnings (loss) per common share - diluted $ (0.57) $ 0.27 $ (2.47) $ 0.54
========== ========== ========== ==========
For the three-month and nine-month periods ended September 30, 2001, all
potential dilutive securitites were excluded from the weighted average shares
calculation as they were anti-dilutive.
NOTE F - LONG-TERM DEBT
The Company's credit facility was amended as of September 27, 2001. As part of
this amendment, the line of credit facility was reduced from $120 million to $90
million to better match the Company's borrowing requirements.
8
REPTRON ELECTRONICS, INC
Item 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
----------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------
This document contains certain forward-looking statements that involve a
number of risks and uncertainties. Such forward-looking statements are within
the meaning of that term in Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities Act of 1934, as amended. Factors that
could cause actual results to differ materially include the following: business
conditions and growth in our industry and in the general economy; competitive
factors; risks due to shifts in market demand; the ability of Reptron to
complete and integrate acquisitions; and the risk factors listed from time to
time in our reports filed with the Securities and Exchange Commission as well as
assumptions regarding the foregoing. The words "believe", "estimate", "expect",
"intend", "anticipate", "plan" and similar expressions and variations thereof
identify certain of such forward-looking statements, which speak only as of the
dates on which they were made. Reptron undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events, or otherwise. Readers are cautioned that any such
forward-looking statements are not guarantees of future performance and involve
risks and uncertainties, and that actual results may differ materially from
those indicated in the forward-looking statements as a result of various
factors. Readers are cautioned not to place undue reliance on these forward-
looking statements.
RESULTS OF OPERATIONS
- ---------------------
Net Sales. Third quarter net sales decreased $67.7 million, or 44.4%, from
$152.7 million in the third quarter of 2000 to $84.9 million in the third
quarter of 2001. Total net sales for the first three quarters of 2001 decreased
$98.1 million, or 23.5% from $416.5 million in the first three quarters of 2000
to $318.5 million in the first three quarters of 2001.
Electronic Component Distribution ("ECD") third quarter net sales decreased
$47.1 million, or 50.6%, from $93.1 million in the third quarter of 2000 to
$46.0 million in the third quarter of 2001. Management believes this decrease
resulted primarily from a significant slowdown in the sales volume and price
reductions of electronic components in the United States. Sales of
semiconductors, passive components and electromechanical components accounted
for 80.1%, 8.3% and 11.6%, respectively, of third quarter 2001 ECD net sales
compared to 67.0%, 24.3% and 8.7%, respectively, of third quarter 2000 ECD net
sales. Sales generated from the top four ECD vendors accounted for
approximately $20.8 million, or 42.7% of third quarter 2001 ECD net sales, as
compared with approximately $40.0 million or 43.0% of third quarter 2000 ECD net
sales.
ECD net sales decreased $64.4 million, or 25.9%, from $249.0 million in the
first three quarters of 2000 to $184.6 million in the first three quarters of
2001. This decrease was driven primarily by factors stated above. Sales of
semiconductors, passive components and electromechanical components accounted
for 80.4%, 10.0% and 9.6%, respectively, of first three quarters 2001 ECD net
sales, compared to 65.9%, 25.8% and 8.3%, respectively, of first three quarters
2000 ECD net sales. Sales generated from the top four ECD vendors accounted for
approximately $85.5 million, or 44.8% of first three quarters 2001 ECD net
sales, as compared with approximately $103.0 million or 41.4% of first three
quarters 2000 ECD net sales
Electronic Manufacturing Services ("EMS") net sales decreased $20.7
million, or 34.7%, from $59.6 million in the third quarter of 2000 to $38.9
million in the third quarter of 2001. This decrease is primarily attributable to
decreased demand within the semiconductor equipment and telecommunications
customer base of EMS. EMS transacted business with 67 customers in the third
quarter of 2001. The three largest EMS customers accounted for approximately
18.5%, 11.6% and 7.6%, respectively, of third quarter 2001 EMS net sales (8.5%,
5.3% and 3.5%, respectively, of total Company third quarter 2001 net sales) as
compared to 16.5%, 10.5% and 9.7%, respectively, of third quarter 2000 EMS net
sales (6.4%, 4.1% and 3.8%, respectively, of total Company third quarter 2000
net sales).
9
EMS net sales decreased $33.7 million, or 20.1%, from $167.6 million in the
first three quarters of 2000 to $133.9 million in the first three quarters of
2001. This decrease was driven primarily by factors stated above. EMS transacted
business with 76 customers during the first three quarters of 2001. The three
largest EMS customers accounted for approximately 14.1%, 12.5%, and 6.6%,
respectively, of first three quarters 2001 EMS net sales (5.3%, 2.8% and 3.7%,
respectively, of total Company first three quarters 2001 net sales) as compared
to 14.7%, 9.3% and 9.1%, respectively, of first three quarters 2000 EMS net
sales (5.9%, 3.7% and 3.7%, respectively, of total Company first three quarters
2000 net sales).
Gross Profit. Total third quarter gross profit decreased $13.0 million or
51.9%, from $25.0 million in the third quarter of 2000 to $12.0 million in the
third quarter of 2001. The gross margin decreased from 16.4% in the third
quarter of 2000 to 14.2% in the third quarter of 2001. Total gross profit
decreased $32.5 million, or 47.5%, from $68.4 million in the first three
quarters of 2000 to $35.9 million in the first three quarters of 2001. The gross
margin decreased from 16.4% in the first three quarters of 2000 to 11.3% (to
15.1% excluding the $12 million non-cash inventory writedown in the second
quarter of 2001) in the first three quarters of 2001.
ECD third quarter gross profit decreased $8.1 million, or 48.3%, from $16.7
million in the third quarter of 2000 to $8.6 million in the third quarter of
2001. ECD gross margin increased from 18.0% in the third quarter of 2000 to
18.8% in the third quarter of 2001. This increase in gross margin is due
primarily to improved purchasing and selling practices in the third quarter of
2001 as compared with the third quarter of 2000. ECD first three quarters gross
margin decreased from 18.6% in the first three quarters of 2000 to 12.9% (to
18.3% excluding the $10.0 million non-cash inventory writedown charge in the
second quarter of 2001) in the first three quarters of 2001.
EMS gross profit decreased $4.9 million, or 59.2%, from $8.3 million in the
third quarter of 2000 to $3.4 million in the third quarter of 2001 and gross
margin decreased from 13.9% in the third quarter of 2000 to 8.7% in the third
quarter of 2001. EMS first three quarters gross profit decreased $10.0 million,
or 45.2% from $22.0 million in 2000 to $12.1 million in 2001 and its gross
margin decreased from 13.2% in the first three quarters of 2000 to 9.0% (to
10.5% excluding the $2.0 million non-cash inventory writedown charge in the
second quarter of 2001) in the first three quarters of 2001. The remaining
decrease in gross margin is primarily attributable to under utilization of
assets in the manufacturing process due to the significant reduction of sales
orders in the first three quarters of 2001.
Selling, General, and Administrative Expenses. Selling, general, and
administrative expenses decreased $3.2 million, or 17.3%, from $18.4 million in
the third quarter of 2000 to $15.3 million in the third quarter of 2001. The
decrease in selling, general and administrative expenses is primarily
attributable to cost cutting measures implemented in the second and third
quarters of 2001. Selling, general and administrative Expenses in the first
three quarters decreased $0.8 million or 1.5% from $53.4 million in the first
three quarters of 2000 to $52.6 million in the first three quarters of 2001.
Selling, general and administrative Expenses in the First three quarters as a
percentage of net sales increased from 12.8% in the first three quarters of 2000
to 16.5% in the first three quarters of 2001.
Interest Expense. Net interest expense decreased $0.5 million, or 15.0%,
from $3.1 million in the third quarter of 2000 to $2.6 million in the third
quarter of 2001. Net interest expense in the first three quarters increased $0.4
million, or 4.6%, from $8.1 million in the first three quarters of 2000 to $8.5
million in the first three quarters of 2001. This increase in net interest
expense is the result of the combination of an increase in average outstanding
debt of $15.9 million from $139.6 million during the first three quarters of
2000 to $155.5 million during the first three quarters of 2001, And a decrease
in average interest rate charges from 7.8% during the first three quarters of
2000 to 7.3% during the first three quarters of 2001.
10
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
Reptron primarily finances its operations through subordinated notes, bank
credit lines, capital equipment leases, and short-term financing through
supplier credit lines.
Net cash provided by or used in operating activities has historically been
driven by net income (loss) levels combined with fluctuations in inventory,
accounts receivable and accounts payable. Operating activities for the first
three quarters of 2001 provided cash of approximately $19.6 million. This
increase in cash flow resulted primarily from decreases in accounts receivable
of $40.7 million and inventories of $24.9 million, excluding a non-cash
inventory writedown of $12.0 million in the second quarter of 2001. These items
were partially offset by decreases in accounts payable of $32.9 million and
accrued expenses of $6.0 million. Days sales in accounts receivable as of
September 30, 2001 were approximately 64 days. Annualized inventory turns for
the first three quarters of 2001 were approximately 4.1 excluding the inventory
writedown in the second quarter of 2001.
Capital expenditures totaled approximately $3.0 million in the first three
quarters of 2001. These capital expenditures were primarily for the acquisition
of manufacturing equipment. These purchases were funded by the working capital
line of credit.
Reptron believes that available credit facilities will be sufficient to
meet capital expenditures and working capital needs of operations as they are
presently conducted. The Company's credit facility was amended as of September
27, 2001. As part of this amendment, the line of credit facility was reduced
from $120 million to $90 million to better match the Company's borrowing
requirements. However, future cash requirements will depend on a wide range of
factors, including the level of business in existing operations, expansion of
facilities, and possible acquisitions. While there can be no assurance that such
financing will be available in amounts and on acceptable terms, Reptron believes
that such financing would likely be available on acceptable terms.
NEW ACCOUNTING PRONOUNCEMENTS
In July 2001, the Financial Accounting Standards Board (FASB) issued Statement
of Financial Accounting Standards (SFAS) 141, Business Combinations, and SFAS
142, Goodwill and Intangible Assets. SFAS 141 is effective for all business
combinations completed after June 30, 2001. SFAS 142 is effective for the year
beginning January 1, 2002, however, certain provisions of that Statement apply
to goodwill and other intangible assets acquired between July 1, 2001 and the
effective date of SFAS 142.
In July 2001, the FASB issued SFAS No. 143, Accounting for Asset Retirement
Obligations. This statement addresses financial accounting and reporting for
obligations associated with the retirement of tangible long-lived assets and the
associated asset retirement costs. This Statement applies to all entities. It
applies to legal obligations associated with the retirement of long-lived assets
that result from the acquisition, construction, development and (or) the normal
operation of a long-lived asset, except for certain obligations of lessees. This
Statement is effective for financial statements issued for fiscal years
beginning after June 15, 2002.
In August 2001, the FASB issued SFAS No. 144, Accounting for the Impairment or
Disposal of Long-Lived Assets. This statement addresses financial accounting and
reporting for the impairment or disposal of long-lived assets and supersedes
FASB Statement No. 121, Accounting for the Impairment of Long-Lived Assets and
for Long-Lived Assets To Be Disposed Of. The porvisions of the statement are
effective for financial statements issued for fiscal years beginning after
December 15, 2001.
The Company is evaluating the impact of the adoption of these standards and has
not yet determined the effect of adoption on its financial position and results
of operations.
Item 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
----------------------------------------------------------
While we had no holdings of derivative financial or commodity instruments
at September 30, 2001, we are exposed to financial market risks, including
changes in interest rates. A majority of our borrowings bear a fixed interest
rate. However, borrowings under our bank Credit Facility bears interest at a
variable rate based on the prime rate or the London Interbank Offered Rate.
11
REPTRON ELECTRONICS, INC.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits
10.1 Fifth Amendment To Revolving Credit And Security Agreement Dated
January 8, 1999.
b. Reports on Form 8-K
None
12
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Dated: November 14, 2001
-------------------
REPTRON ELECTRONICS, INC.
-------------------------
(Registrant)
By: /s/ Paul J. Plante
----------------------------------
Paul J. Plante, President and Chief
Operating Officer (Principal
Financial and Accounting Officer)
13