| SECURITIES AND EXCHANGE COMMISSION |
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| Washington, D.C. 20549
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| Form 10-Q |
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| Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Act of 1934 | ||
| For the Quarter Ended December 27, 2002
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Commission File No. 0-23018
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| PLANAR SYSTEMS, INC. |
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| (exact name of registrant as specified in its charter) |
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| Oregon |
93-0835396 | |
| (State or other jurisdiction of incorporation or organization) |
(IRS Employer Identification No.) | |
| 1195 NW Compton Dr., Beaverton, Oregon |
97006 | |
| (Address of principal executive offices) |
(zip code) | |
| Registrant’s telephone number, including area code: (503) 690-1100
| ||
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.
X Yes No
Number of shares of common stock outstanding as of February 3, 2002
13,947,637 shares, no par value per share
PLANAR SYSTEMS, INC.
| Page | ||
| Part I. Financial Information |
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| Item 1. Financial Statements |
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| 3 | ||
| Consolidated Balance Sheets as of December 27, 2002 and September 27, 2002 |
4 | |
| 5 | ||
| 6 | ||
| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations |
10 | |
| Item 3. Quantitative and Qualitative Disclosures About Market Risk |
15 | |
| Part II. Other Information |
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| 16 16 23 | ||
| 23 | ||
| 24 |
2
Item 1. Financial Statements
Planar Systems, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(unaudited)
| Three months ended |
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| Dec. 27, 2002 |
Dec. 28, 2001 |
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| Sales |
$ |
56,743 |
|
$ |
40,785 |
| ||
| Cost of sales |
|
39,977 |
|
|
28,333 |
| ||
| Gross profit |
|
16,766 |
|
|
12,452 |
| ||
| Operating expenses: |
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| Research and development, net |
|
2,397 |
|
|
2,630 |
| ||
| Sales and marketing |
|
4,693 |
|
|
2,842 |
| ||
| General and administrative |
|
4,364 |
|
|
3,162 |
| ||
| Amortization of intangible assets |
|
708 |
|
|
— |
| ||
| Total operating expenses |
|
12,162 |
|
|
8,634 |
| ||
| Income from operations |
|
4,604 |
|
|
3,818 |
| ||
| Non-operating income (expense): |
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| Interest, net |
|
(465 |
) |
|
(119 |
) | ||
| Foreign exchange, net |
|
(32 |
) |
|
(2 |
) | ||
| Net non-operating expense |
|
(497 |
) |
|
(121 |
) | ||
| Income before income taxes |
|
4,107 |
|
|
3,697 |
| ||
| Provision for income taxes |
|
1,397 |
|
|
1,257 |
| ||
| Net income |
$ |
2,710 |
|
$ |
2,440 |
| ||
| Basic net income per share |
$ |
0.20 |
|
$ |
0.19 |
| ||
| Average shares outstanding – basic |
|
13,783 |
|
|
12,550 |
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| Diluted net income per share |
$ |
0.19 |
|
$ |
0.19 |
| ||
| Average shares outstanding – diluted |
|
14,429 |
|
|
13,106 |
| ||
See accompanying notes to unaudited consolidated financial statements.
3
Consolidated Balance Sheets
(In thousands)
| Dec. 27, 2002 |
Sept. 27, 2002 |
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| (unaudited) |
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| ASSETS |
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| Current assets: |
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| Cash and cash equivalents |
$ |
40,140 |
|
$ |
37,451 |
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| Accounts receivable |
|
29,571 |
|
|
31,437 |
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| Inventories |
|
30,413 |
|
|
29,305 |
| ||
| Other current assets |
|
12,172 |
|
|
13,409 |
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| Total current assets |
|
112,296 |
|
|
111,602 |
| ||
| Property, plant and equipment, net |
|
23,812 |
|
|
24,669 |
| ||
| Goodwill |
|
49,001 |
|
|
49,001 |
| ||
| Intangible assets |
|
12,671 |
|
|
13,379 |
| ||
| Other assets |
|
7,609 |
|
|
7,820 |
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| $ |
205,389 |
|
$ |
206,471 |
| |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
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| Current liabilities: |
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| Accounts payable |
$ |
8,579 |
|
$ |
5,330 |
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| Accrued compensation |
|
6,303 |
|
|
6,006 |
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| Current portion of long-term debt and capital leases |
|
11,037 |
|
|
11,923 |
| ||
| Deferred revenue |
|
337 |
|
|
603 |
| ||
| Other current liabilities |
|
11,345 |
|
|
11,307 |
| ||
| Total current liabilities |
|
37,601 |
|
|
35,169 |
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| Long-term debt and capital leases, less current portion |
|
30,142 |
|
|
39,282 |
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| Other long-term liabilities |
|
7,651 |
|
|
7,661 |
| ||
| Total liabilities |
|
75,394 |
|
|
82,112 |
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| Shareholders’ equity: |
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| Common stock |
|
119,422 |
|
|
117,520 |
| ||
| Retained earnings |
|
18,528 |
|
|
15,938 |
| ||
| Accumulated other comprehensive loss |
|
(7,955 |
) |
|
(9,099 |
) | ||
| Total shareholders’ equity |
|
129,995 |
|
|
124,359 |
| ||
| $ |
205,389 |
|
$ |
206,471 |
| |||
See accompanying notes to unaudited consolidated financial statements.
4
Consolidated Statement of Cash Flows
(In thousands)
(unaudited)
| Three months ended |
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| Dec. 27, 2002 |
Dec. 28, 2001 |
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| Cash flows from operating activities: |
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| Net income |
$ |
2,710 |
|
$ |
2,440 |
| ||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities |
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| Depreciation and amortization |
|
2,887 |
|
|
1,898 |
| ||
| Deferred taxes |
|
(30 |
) |
|
17 |
| ||
| Foreign exchange loss |
|
32 |
|
|
2 |
| ||
| Decrease in accounts receivable |
|
1,621 |
|
|
9,965 |
| ||
| Increase in inventories |
|
(935 |
) |
|
(1,582 |
) | ||
| (Increase) decrease in other current assets |
|
1,235 |
|
|
(4,115 |
) | ||
| Increase (decrease) in accounts payable |
|
3,270 |
|
|
(3,421 |
) | ||
| Increase (decrease) in accrued compensation |
|
316 |
|
|
(2,240 |
) | ||
| Increase (decrease) in deferred revenue |
|
(273 |
) |
|
62 |
| ||
| Increase (decrease) in other current liabilities |
|
264 |
|
|
(3,596 |
) | ||
| Net cash provided by (used in) operating activities |
|
11,097 |
|
|
(570 |
) | ||
| Cash flows from investing activities: |
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| Purchase of property, plant and equipment |
|
(500 |
) |
|
(786 |
) | ||
| Increase in other long-term liabilities |
|
15 |
|
|
463 |
| ||
| Net sales (purchases) of long-term investments |
|
182 |
|
|
(338 |
) | ||
| Net cash used in investing activities |
|
(303 |
) |
|
(661 |
) | ||
| Cash flows from financing activities: |
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| Payments of long-term debt and capital lease obligations |
|
(10,026 |
) |
|
(493 |
) | ||
| Net proceeds from long-term accounts receivable |
|
— |
|
|
23 |
| ||
| Stock repurchase |
|
(120 |
) |
|
— |
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| Net proceeds from issuance of capital stock |
|
1,902 |
|
|
379 |
| ||
| Net cash used in financing activities |
|
(8,244 |
) |
|
(91 |
) | ||
| Effect of exchange rate changes |
|
139 |
|
|
(376 |
) | ||
| Net increase (decrease) in cash and cash equivalents |
|
2,689 |
|
|
(1,698 |
) | ||
| Cash and cash equivalents at beginning of period |
|
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