UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 9, 2010
ZOLTEK COMPANIES, INC.
(Exact name of registrant as specified in its charter)
MISSOURI 0-20600 43-1311101
(State or other (Commission File (I.R.S. Employer
jurisdiction of Number) Identification
organization) Number)
3101 MCKELVEY ROAD
ST. LOUIS, MISSOURI 63044
(Address of principal executive offices) (Zip Code)
(314) 291-5110
(Registrant's telephone number, including area code)
NOT APPLICABLE
(Former name or former address if changed since last report)
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Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the Registrant under any of
the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
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ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On August 9, 2010, Zoltek Companies, Inc. (the "Registrant") issued
a press release announcing its financial results for the quarter ended June
30, 2010. A copy of the press release is attached hereto and incorporated
herein as Exhibit 99.1. The information in this Item 2.02 of Form 8-K,
including Exhibit 99.1 attached hereto, shall not be deemed "filed" for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or
otherwise subject to the liabilities of that section.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(a) Financial statements of businesses acquired. Not applicable.
(b) Pro forma financial information. Not applicable.
(c) Exhibits. See Exhibit Index.
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SIGNATURES
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.
Dated: August 11, 2010
ZOLTEK COMPANIES, INC.
By /s/ Zsolt Rumy
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Zsolt Rumy
Chief Executive Officer
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EXHIBIT INDEX
Exhibit
Number Description
- ------ -----------
99.1 Press Release, dated August 9, 2010.
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ZOLTEK COMPANIES, INC.
SUMMARY FINANCIAL RESULTS
(Amounts in thousands, except share and per share data)
(Unaudited)
Three Months Ended
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June 30, June 30,
2010 2009
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Net sales $42,448 $30,306
Cost of sales, excluding available unused capacity costs 34,333 21,515
Available unused capacity costs 3,460 2,631
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Gross profit 4,655 6,160
Application and development costs 2,079 2,063
Selling, general and administrative expenses 3,455 4,322
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OPERATING LOSS (879) (225)
Interest income 3 18
(Loss) gain on foreign currency transactions (361) 842
Other income 155 51
Gain on derivative liabilities 737 -
Interest expense, excluding amortization of financing fees and debt discount (83) (305)
Amortization of financing fees and debt discount - (1,137)
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LOSS BEFORE INCOME TAXES (428) (756)
Income tax expense 16 673
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NET LOSS ($444) ($1,429)
=========================
Basic and diluted loss per share ($0.01) ($0.04)
Weighted average common shares outstanding - basic 34,405 34,396
Weighted average common shares outstanding - diluted 34,405 34,396
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ZOLTEK COMPANIES, INC.
SUMMARY FINANCIAL RESULTS
(Amounts in thousands, except share and per share data)
(Unaudited)
Nine Months Ended
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June 30, June 30,
2010 2009
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Net sales $97,344 $104,941
Cost of sales, excluding available unused capacity costs 76,776 75,020
Available unused capacity costs 10,514 4,382
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Gross profit 10,054 25,539
Application and development costs 6,029 5,513
Selling, general and administrative expenses 12,699 14,726
OPERATING (LOSS) INCOME (8,674) 5,300
Interest income 17 343
(Loss) gain on foreign currency transactions (397) 2,092
Other income (expense), net (476) (409)
Gain on derivative liabilities 1,870 -
Interest expense, excluding amortization of financing fees and debt discount (347) (1,250)
Amortization of financing fees and debt discount (289) (4,694)
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(LOSS) INCOME BEFORE INCOME TAXES (8,296) 1,382
Income tax expense (benefit) (2,383) 1,803
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NET LOSS ($5,913) ($421)
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Basic and diluted loss per share ($0.17) ($0.01)
Weighted average common shares outstanding - basic 34,416 34,401
Weighted average common shares outstanding - diluted 34,416 34,401
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ZOLTEK COMPANIES, INC.
CONSOLIDATED BALANCE SHEET
(Amounts in thousands, except share and per share data)
(Unaudited)
June 30, September 30,
2010 2009
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ASSETS
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Current assets:
Cash and cash equivalents $18,618 $20,943
Accounts receivable, less allowance for doubtful accounts of $186 and
$2,356, respectively 28,966 30,507
Inventories, net 35,308 48,058
Other current assets 8,435 10,100
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Total current assets 91,327 109,608
Property and equipment, net 219,166 256,910
Other assets 205 327
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Total assets $310,698 $366,845
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LIABILITIES AND SHAREHOLDERS' EQUITY
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Current liabilities:
Borrowings under credit lines $7,980 $12,277
Current maturities of long-term debt 1,006 4,159
Trade accounts payable 5,886 9,408
Accrued expenses and other liabilities 7,587 6,845
Construction payables 592 792
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Total current liabilities 23,051 33,481
Long-term debt, less current maturities - 981
Hungarian grant, long-term 8,069 10,228
Deferred tax liabilities 2,289 6,690
Derivative liabilities 1,408 -
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Total liabilities 34,817 51,380
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Commitments and contingencies
Shareholders' equity:
Preferred stock, $.01 par value, 1,000,000 shares authorized,
no shares issued and outstanding - -
Common stock, $.01 par value, 50,000,000 shares authorized,
34,401,942 and 34,424,441 shares issued and outstanding at
June 30, 2010 and September 30, 2009, respectively 344 344
Additional paid-in capital 480,315 494,311
Accumulated other comprehensive loss (50,637) (18,405)
Accumulated deficit (154,141) (160,785)
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Total shareholders' equity 275,881 315,465
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Total liabilities and shareholders' equity $310,698 $366,845
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ZOLTEK COMPANIES, INC.
OPERATING SEGMENTS SUMMARY
(Amounts in thousands)
(Unaudited)
THREE MONTHS ENDED JUNE 30, 2010
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CARBON TECHNICAL CORPORATE/
FIBERS FIBERS OTHER TOTAL
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Net sales $35,260 $6,771 $417 $42,448
Cost of sales, excluding available unused
capacity costs 28,914 5,187 232 34,333
Available unused capacity costs 3,189 271 - 3,460
Gross profit 3,157 1,313 185 4,655
Operating income (loss) 1,279 1,065 (3,223) (879)
Depreciation 3,369 349 212 3,930
Capital expenditures 757 16 - 773
THREE MONTHS ENDED JUNE 30, 2009
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CARBON TECHNICAL CORPORATE/
FIBERS FIBERS OTHER TOTAL
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Net sales $25,012 $4,652 $642 $30,306
Cost of sales, excluding available unused
capacity costs 17,204 3,729 582 21,515
Available unused capacity costs 2,392 239 - 2,631
Gross profit 5,416 684 60 6,160
Operating income (loss) 2,284 297 (2,806) (225)
Depreciation 3,259 413 296 3,968
Capital expenditures 2,374 47 - 2,421
NINE MONTHS ENDED JUNE 30, 2010
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CARBON TECHNICAL CORPORATE/
FIBERS FIBERS OTHER TOTAL
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Net sales $78,856 $17,174 $1,314 $97,344
Cost of sales, excluding available unused
capacity costs 62,293 13,469 1,014 76,776
Available unused capacity costs 9,349 1,165 - 10,514
Gross profit 7,214 2,540 300 10,054
Operating income (loss) 944 1,857 (11,475) (8,674)
Depreciation 10,082 1,241 1,024 12,347
Capital expenditures 1,966 528 384 2,878
NINE MONTHS ENDED JUNE 30, 2009
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CARBON TECHNICAL CORPORATE/
FIBERS FIBERS OTHER TOTAL
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Net sales $86,641 $16,407 $1,893 $104,941
Cost of sales, excluding available unused
capacity costs 61,085 12,363 1,572 75,020
Available unused capacity costs 3,594 788 - 4,382
Gross profit 21,962 3,256 321 25,539
Operating income (loss) 13,518 1,430 (9,648) 5,300
Depreciation 9,923 1,222 849 11,994
Capital expenditures 14,737 584 154 15,475
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