x |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| Florida |
59-1162998 | |
| (State or other jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification No.) | |
| 3000 N.W. 107 Avenue |
||
| Miami, Florida |
33172 | |
| (Address of Principal Executive Offices) |
(Zip Code) |
| PAGE | ||
| PART I: FINANCIAL INFORMATION |
||
| Item 1: |
||
| 1 | ||
| 2 | ||
| 3 | ||
| 4 | ||
| Item 2: |
||
| 19 | ||
| Item 3: |
||
| 26 | ||
| Item 4: |
||
| 27 | ||
| 28 | ||
| 29 | ||
| 30 |
| July 31, 2002 |
January 31, 2002 |
|||||||
| ASSETS |
||||||||
| Current Assets: |
||||||||
| Cash and cash equivalents |
$ |
28,037,263 |
|
$ |
1,303,978 |
| ||
| Accounts receivable, net |
|
53,390,781 |
|
|
50,370,245 |
| ||
| Inventories, net |
|
33,192,190 |
|
|
45,409,047 |
| ||
| Deferred income taxes |
|
2,485,355 |
|
|
2,384,316 |
| ||
| Prepaid income taxes |
|
1,372,454 |
|
|
|
| ||
| Other current assets |
|
3,231,176 |
|
|
1,886,163 |
| ||
| |
|
|
|
|
| |||
| Total current assets |
|
121,709,219 |
|
|
101,353,749 |
| ||
| Property and equipment, net |
|
27,361,145 |
|
|
10,897,334 |
| ||
| Intangible assets, net |
|
142,307,981 |
|
|
117,938,894 |
| ||
| Other |
|
10,669,352 |
|
|
3,870,703 |
| ||
| |
|
|
|
|
| |||
| TOTAL |
$ |
302,047,697 |
|
$ |
234,060,680 |
| ||
| |
|
|
|
|
| |||
| LIABILITIES & STOCKHOLDERS' EQUITY |
||||||||
| Current Liabilities: |
||||||||
| Accounts payable |
$ |
10,451,666 |
|
$ |
5,966,369 |
| ||
| Accrued expenses |
|
5,625,220 |
|
|
3,259,602 |
| ||
| Income taxes payable |
|
|
|
|
1,381,551 |
| ||
| Accrued interest payable |
|
4,861,960 |
|
|
3,808,997 |
| ||
| Current portionsenior credit facility |
|
|
|
|
21,756,094 |
| ||
| Unearned revenues |
|
2,136,863 |
|
|
1,838,929 |
| ||
| Other current liabilities |
|
2,834,242 |
|
|
2,410,583 |
| ||
| |
|
|
|
|
| |||
| Total current liabilities |
|
25,909,951 |
|
|
40,422,125 |
| ||
| Senior subordinated notes payable, net |
|
100,672,892 |
|
|
99,071,515 |
| ||
| Senior secured notes payable, net |
|
59,144,023 |
|
|
|
| ||
| Real estate mortgage |
|
11,600,000 |
|
|
|
| ||
| Deferred income tax |
|
8,688,608 |
|
|
6,749,832 |
| ||
| |
|
|
|
|
| |||
| Total long-term liabilities |
|
180,105,523 |
|
|
105,821,347 |
| ||
| |
|
|
|
|
| |||
| Total liabilities |
|
206,015,474 |
|
|
146,243,472 |
| ||
| |
|
|
|
|
| |||
| Minority Interest |
|
623,516 |
|
|
613,671 |
| ||
| |
|
|
|
|
| |||
| Stockholders' Equity: |
||||||||
| Preferred stock $.01 par value; 1,000,000 shares authorized; no shares issued or outstanding |
|
|
|
|
|
| ||
| Class A Common stock $.01 par value; 30,000,000 shares authorized; no shares issued or outstanding |
|
|
|
|
|
| ||
| Common stock $.01 par value; 30,000,000 shares authorized; 6,416,390 shares issued and outstanding as of July 31, 2002
and 6,337,440 shares issued and 6,286,740 shares outstanding as of January 31, 2002 |
|
64,164 |
|
|
63,374 |
| ||
| Additional paid-in-capital |
|
27,111,889 |
|
|
26,286,040 |
| ||
| Retained earnings |
|
68,333,698 |
|
|
61,386,243 |
| ||
| Accumulated other comprehensive income |
|
(101,044 |
) |
|
(121,753 |
) | ||
| |
|
|
|
|
| |||
| Total |
|
95,408,707 |
|
|
87,613,904 |
| ||
| Common stock in treasury at cost; 50,700 shares as of January 31, 2002 |
|
|
|
|
(410,367 |
) | ||
| |
|
|
|
|
| |||
| Total stockholders' equity |
|
95,408,707 |
|
|
87,203,537 |
| ||
| |
|
|
|
|
| |||
| TOTAL |
$ |
302,047,697 |
|
$ |
234,060,680 |
| ||
| |
|
|
|
|
| |||
| Three Months Ended July 31, |
Six Months Ended July 31, | |||||||||||||
| 2002 |
2001 |
2002 |
2001 | |||||||||||
| Revenues |
||||||||||||||
| Net sales |
$ |
56,394,030 |
|
$ |
58,712,256 |
|
$ |
135,013,122 |
$ |
139,174,929 | ||||
| Royalty income |
|
7,600,633 |
|
|
6,857,434 |
|
|
13,677,426 |
|
12,923,064 | ||||
| |
|
|
|
|
|
|
|
|
| |||||
| Total revenues |
|
63,994,663 |
|
|
65,569,690 |
|
|
148,690,548 |
|
152,097,993 | ||||
| Cost of sales |
|
42,535,834 |
|
|
45,111,237 |
|
|
100,467,933 |
|
105,892,846 | ||||
| |
|
|
|
|
|
|
|
|
| |||||
| Gross profit |
|
21,458,829 |
|
|
20,458,453 |
|
|
48,222,615 |
|
46,205,147 | ||||
| Operating expenses |
||||||||||||||
| Selling, general and administrative expenses |
|
13,483,861 |
|
|
12,781,737 |
|
|
27,994,247 |
|
27,786,721 | ||||
| Depreciation and amortization |
|
743,090 |
|
|
1,638,821 |
|
|
1,402,828 |
|
3,239,666 | ||||
| |
|
|
|
|
|
|
|
|
| |||||
| Total operating expenses |
|
14,226,951 |
|
|
14,420,558 |
|
|
29,397,075 |
|
31,026,387 | ||||
| |
|
|
|
|
|
|
|
|
| |||||
| Operating income |
|
7,231,878 |
|
|
6,037,895 |
|
|
18,825,540 |
|
15,178,760 | ||||
| Interest expense |
|
3,786,193 |
|
|
3,647,085 |
|
|
7,652,924 |
|
7,738,853 | ||||
| |
|
|
|
|
|
|
|
|
| |||||
| Income before minority interest and income tax provision |
|
3,445,685 |
|
|
2,390,810 |
|
|
11,172,616 |
|
7,439,907 | ||||
| Minority interest |
|
(22,176 |
) |
|
|
|
|
9,844 |
|
| ||||
| Share of income(loss) from unconsolidated subsidiary |
|
|
|
|
(7,515 |
) |
|
|
|
24,534 | ||||
| Income taxes |
|
1,286,608 |
|
|
896,388 |
|
|
4,215,319 |
|
2,779,934 | ||||
| |
|
|
|
|
|
|
|
|
| |||||
| Net income |
$ |
2,181,253 |
|
$ |
1,486,907 |
|
$ |
6,947,453 |
$ |
4,684,507 | ||||
| |
|
|
|
|
|
|
|
|
| |||||
| Net income per share |
||||||||||||||
| Basic |
$ |
0.34 |
|
$ |
0.23 |
|
$ |
1.09 |
$ |
0.71 | ||||
| |
|
|
|
|
|
|
|
|
| |||||
| Diluted |
$ |
0.34 |
|
$ |
0.23 |
|
$ |
1.08 |
$ |
0.71 | ||||
| |
|
|
|
|
|
|
|
|
| |||||
| Weighted average number of shares outstanding |
||||||||||||||
| Basic |
|
6,384,932 |
|
|
6,579,537 |
|
|
6,386,341 |
|
6,579,919 | ||||
| Diluted |
|
6,449,468 |
|
|
6,594,699 |
|
|
6,451,341 |
|
6,594,705 | ||||
| Six Months Ended July 31, |
||||||||
| 2002 |
2001 |
|||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
| Net income |
$ |
6,947,453 |
|
$ |
4,684,507 |
| ||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Depreciation and amortization |
|
1,073,142 |
|
|
3,010,280 |
| ||
| Amortization of debt issue cost |
|
393,698 |
|
|
309,674 |
| ||
| Amortization of bond discount |
|
165,973 |
|
|
82,000 |
| ||
| Deferred income taxes |
|
1,837,737 |
|
|
|
| ||
| Minority interest |
|
9,844 |
|
|
|
| ||
| Other |
|
20,710 |
|
|
(25,888 |
) | ||
| Changes in operating assets and liabilities (net of effects of acquisitions): |
||||||||
| Accounts receivable, net |
|
(3,020,536 |
) |
|
9,591,940 |
| ||
| Inventories |
|
14,407,999 |
|
|
5,932,620 |
| ||
| Other current assets and prepaid income taxes |
|
(2,742,217 |
) |
|
425,759 |
| ||
| Other assets |
|
(2,212,635 |
) |
|
(458,937 |
) | ||
| Accounts payable and accrued expenses |
|
4,883,846 |
|
|
(1,336,995 |
) | ||
| Income taxes payable |
|
(1,381,551 |
) |
|
||||