BMC INDUSTRIES INC/MN/ - 10-Q Quarterly Report

X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the Quarterly Period ended September 30, 2003.

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition Period from to .

Indicate by check mark whether 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 at least the past 90 days.

X Yes

_______ No

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

Yes

X No

BMC Industries, Inc. had 27,052,785 outstanding shares of common stock, which is the only class of common stock of the registrant, as of November 13, 2003.

Exhibit Index Begins at Page 27

PART I: FINANCIAL INFORMATION

Item 1: Financial Statements

BMC INDUSTRIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)


		September 30			December 31
ASSETS			2003			2002
Current assets			(Unaudited)
Cash and cash equivalents	$		5,026		$	1,635
Trade accounts receivable, net			25,152			27,660
Inventories			39,030			59,736
Deferred income taxes			-			9,492
Assets held for sale			4,625			7,080
Other current assets			3,795			6,350
Total current assets			77,628			111,953

Property, plant and equipment			163,265			272,051
Less accumulated depreciation			113,595			157,797
Property, plant and equipment, net			49,670			114,254
Deferred income taxes			-			3,083
Intangible assets, net			10,531			12,141
Other assets			1,790			5,928
Total assets	$		139,619		$	247,359
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities
Short-term borrowings	$		603		$	747
Current portion of long term debt			130,110			14,010
Accounts payable			12,694			25,113
Deferred income taxes			-			88
Accrued expenses and other current liabilities			23,717			20,775
Total current liabilities			167,124			60,733

Long-term debt			22			97,529
Other liabilities			15,819			28,463
Deferred income taxes			1,390			1,155

Stockholders' equity (deficit)
Common stock			47,408			46,949
Retained (deficit) earnings			(86,764	)		19,957
Accumulated other comprehensive loss			(5,311	)		(7,358	)
Other			(69	)		(69	)
Total stockholders' equity (deficit)			(44,736	)		59,479

Total liabilities and stockholders' equity (deficit)	$		139,619		$	247,359

See accompanying Notes to Condensed Consolidated Financial Statements.

BMC INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(in thousands, except per share amounts)

	Three Months Ended						Nine Months Ended
	September 30						September 30
		2003			2002			2003			2002
Revenues	$	40,784		$	42,500		$	124,578		$	140,642
Cost of products sold		42,519			38,097			125,043			130,315
Gross margin		(1,735	)		4,403			(465	)		10,327
Selling expense		2,792			2,741			8,375			8,919
Administration expense		5,834			1,484			9,027			4,736
Impairment of long-lived assets		-			-			45,036			-
Restructuring charges		-			-			-			2,800
Loss from operations		(10,361	)		178			(62,903	)		(6,128	)
Other income and (expense)
Interest expense		(2,585	)		(2,427	)		(8,159	)		(7,626	)
Interest income		2			67			6			172
Other income (expense)		529			(113	)		604			2,846
Loss from continuing operations before income taxes and accounting change		(12,415	)		(2,295	)		(70,452	)		(10,736	)
Income tax expense		(70	)		(922	)		(10,064	)		(877	)
Loss from continuing operations before accounting change		(12,485	)		(3,217	)		(80,516	)		(11,613	)
Cumulative effect of change in accounting principle

BMC INDUSTRIES, INC.
(Exact Name of Registrant as Specified in its Charter)

Minnesota	41-0169210
(State of Incorporation)	(IRS Employer Identification No.)

One Meridian Crossings, Suite 850, Minneapolis, Minnesota 55423
(Address of Principal Executive Offices) (Zip Code)


(952) 851-6000
(Registrant's Telephone Number, Including Area Code)