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, 2002
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 Number 0-26924
AMX Corporation
(Exact name of registrant as specified in its charter)
| Texas (State of Incorporation) |
75-1815822 (I.R.S. Employer Identification No.) | |
|
3000 Research Drive Richardson, Texas (Address of principal executive offices) |
75082 (Zip Code) |
Registrant’s telephone number, including area code: (469) 624-8000
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 ¨
| Common Stock, $0.01 Par Value (Title of Each Class) |
11,202,858 (Number of Shares Outstanding at January 31, 2003) |
AMX CORPORATION
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2002
| Page Number | ||||
| Part I. |
Financial Information (Unaudited) |
|||
| Item 1. |
Consolidated Balance Sheets at December 31, 2002 and March 31, 2002 |
3 | ||
| Consolidated Statements of Operations for the Three and Nine Months Ended December 31, 2002 and 2001 |
4 | |||
| Consolidated Statements of Cash Flows for the Nine Months Ended December 31, 2002 and 2001 |
5 | |||
| 6 | ||||
| Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
12 | ||
| Item 3. |
20 | |||
| Item 4. |
20 | |||
| Part II. |
Other Information |
|||
| Item 6. |
21 | |||
| 21 | ||||
| 22 |
2
AMX CORPORATION
| (Unaudited) |
||||||
| December 31, |
March 31, | |||||
| 2002 |
2002 | |||||
| ASSETS |
||||||
| Current assets: |
||||||
| Cash and cash equivalents |
$ |
3,943,708 |
$ |
1,245,452 | ||
| Receivables, less allowance for doubtful accounts of $834,000 at December 31, 2002 and $1,130,000 at March 31, 2002 |
|
9,640,905 |
|
13,579,304 | ||
| Inventories |
|
9,750,558 |
|
11,700,211 | ||
| Income tax receivable |
|
352,267 |
|
1,908,225 | ||
| Prepaid expenses |
|
1,297,670 |
|
859,875 | ||
| Other current assets |
|
28,947 |
|
— | ||
| Total current assets |
|
25,014,055 |
|
29,293,067 | ||
| Property and equipment, at cost, net |
|
7,437,659 |
|
8,265,011 | ||
| Deposits and other |
|
404,448 |
|
382,876 | ||
| Total assets |
$ |
32,856,162 |
$ |
37,940,954 | ||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| Current liabilities: |
||||||||
| Accounts payable |
$ |
4,102,587 |
|
$ |
7,295,345 |
| ||
| Current portion of long-term debt |
|
1,021,450 |
|
|
1,021,450 |
| ||
| Line of credit |
|
4,000,000 |
|
|
7,600,000 |
| ||
| Accrued compensation |
|
1,878,839 |
|
|
1,400,564 |
| ||
| Accrued restructuring costs |
|
119,474 |
|
|
448,495 |
| ||
| Accrued sales commissions |
|
441,188 |
|
|
600,056 |
| ||
| Other accrued expenses |
|
2,979,107 |
|
|
2,773,084 |
| ||
| Total current liabilities |
|
14,542,645 |
|
|
21,138,994 |
| ||
| Long-term debt |
|
254,852 |
|
|
1,013,002 |
| ||
| Commitments and contingencies |
||||||||
| Shareholders’ equity: |
||||||||
| Preferred stock, $0.01 par value: |
||||||||
| Authorized shares—10,000,000 |
||||||||
| Issued shares—none |
|
— |
|
|
— |
| ||
| Common stock, $0.01 par value: |
||||||||
| Authorized shares—40,000,000 |
||||||||
| Issued shares—11,637,689 at December 31, 2002 and 11,583,525 at March 31, 2002 |
|
116,377 |
|
|
115,835 |
| ||
| Additional paid-in capital |
|
24,333,344 |
|
|
24,257,894 |
| ||
| Accumulated deficit |
|
(1,922,772 |
) |
|
(4,116,487 |
) | ||
| Less treasury stock (496,476 shares) |
|
(4,468,284 |
) |
|
(4,468,284 |
) | ||
| Total shareholders’ equity |
|
18,058,665 |
|
|
15,788,958 |
| ||
| Total liabilities and shareholders’ equity |
$ |
32,856,162 |
|
$ |
37,940,954 |
| ||
See accompanying notes.
3
AMX CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months Ended December 31, |
Nine Months Ended December 31, |
|||||||||||||
| 2002 |
2001 |
2002 |
2001 |
|||||||||||
| Commercial system sales |
$ |
17,472,044 |
$ |
17,799,997 |
|
$ |
55,066,558 |
$ |
55,190,049 |
| ||||
| Residential system sales |
|
2,795,678 |
|
3,485,443 |
|
|
7,622,849 |
|
10,824,610 |
| ||||
| Total sales |
|
20,267,722 |
|
21,285,440 |
|
|
62,689,407 |
|
66,014,659 |
| ||||
| Cost of sales |
|
10,152,669 |
|
10,965,057 |
|
|
30,951,756 |
|
35,437,388 |
| ||||
| Gross profit |
|
10,115,053 |
|
10,320,383 |
|
|
31,737,651 |
|
30,577,271 |
| ||||
| Selling and marketing expenses |
|
5,180,153 |
|
6,064,736 |
|
|
15,950,295 |
|
21,424,764 |
| ||||
| Research and development expenses |
|
2,460,789 |
|
1,458,865 |
|
|
6,851,638 |
|
5,292,123 |
| ||||
| Restructuring costs |
|
— |
|
545,933 |
|
|
— |
|
456,191 |
| ||||
| General and administrative expenses |
|
1,988,450 |
|
1,806,208 |
|
|
6,196,406 |
|
6,049,307 |
| ||||
| Total operating expenses |
|
9,629,392 |
|
9,875,742 |
|
|
28,998,339 |
|
33,222,385 |
| ||||
| Operating income (loss) |
|
485,661 |
|
444,641 |
|
|
2,739,312 |
|
(2,645,114 |
) | ||||
| Interest expense |
|
89,158 |
|
154,225 |
|
|
331,861 |
|
563,591 |
| ||||
| Other income (expense), net |
|
5,127 |
|
(4,290 |
) |
|
13,924 |
|
(91,301 |
) | ||||
| Income (loss) before income taxes |
|
401,630 |
|
286,126 |
|
|
2,421,375 |
|
(3,300,006 |
) | ||||
| Income tax expense (benefit) |
|
16,278 |
|
(13,063 |
) |
|
227,660 |
|
4,332,558 |
| ||||
| Net income (loss) |
$ |
385,352 |
$ |
299,189 |
|
$ |
2,193,715 |
$ |
(7,632,564 |
) | ||||
| Basic income (loss) per share |
$ |
0.03 |
$ |
0.03 |
|
$ |
0.20 |
$ |
(0.69 |
) | ||||
| Diluted income (loss) per share |
$ |
0.03 |
$ |
0.03 |
|
$ |
0.20 |
$ |
(0.69 |
) | ||||
See accompanying notes.
4
AMX CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Nine Months Ended December 31, |
||||||||
| 2002 |
2001 |
|||||||
| Operating Activities |
||||||||
| Net income (loss) |
$ |
2,193,715 |
|
$ |
(7,632,564 |
) | ||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
||||||||
| Depreciation |
|
2,285,014 |
|
|
3,088,125 |
| ||
| Amortization |
|
— |
|
|
442,129 |
| ||
| Write-down of demonstration equipment |
|
— |
|
|
708,813 |
| ||
| Write-down of goodwill |
|
— |
|
|
90,197 |
| ||
| Provision for losses on receivables |
|
376,378 |
|
|
630,322 |
| ||
| Provision for inventory obsolescence |
|
634,866 |
|
|
2,735,623 |
| ||
| Deferred income taxes and valuation allowance |
|
— |
|
|
4,331,632 |
| ||
| Changes in operating assets and liabilities: |
||||||||
| Receivables |
|
3,562,021 |
|
|||||