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Table of Contents
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 10-Q
 
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Act of 1934
 
For the Quarter Ended June 28, 2002
 
Commission File No. 0-23018
 
 
PLANAR SYSTEMS, INC.
(exact name of registrant as specified in its charter)
 
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 common stock outstanding as of July 30, 2002
13,588,354 shares, no par value per share
 

Table of Contents
PLANAR SYSTEMS, INC.
 
INDEX
 
        
Page
Part I.    Financial Information
     
          Item 1.
  
Financial Statements
     
      
3
      
4
      
5
      
6
        Item 2.
     
13
Part II.    Other Information
     
        Item 2.
     
18
        Item 5.
     
18
        Item 6.
     
24
 
   
 
25
 

2

Table of Contents
 
Part 1.    FINANCIAL INFORMATION
 
Item 1.    Financial Statements
 
PLANAR SYSTEMS, INC. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
 
    
Three months ended
     
Nine months ended
  
    
June 28, 2002
     
June 29, 2001
     
June 28, 2002
     
June 29, 2001
  
Sales
   
$
58,020
 
   
$
52,447
 
   
$
147,662
 
   
$
157,305
 
Cost of sales
   
 
40,164
 
   
 
35,562
 
   
 
104,155
 
   
 
108,182
 
    
  
  
  
Gross profit
   
 
17,856
 
   
 
16,885
 
   
 
43,507
 
   
 
49,123
 
Operating expenses:
                                    
Research and development, net
   
 
3,766
 
   
 
3,430
 
   
 
9,075
 
   
 
8,286
 
Sales and marketing
   
 
4,298
 
   
 
4,640
 
   
 
10,567
 
   
 
13,010
 
General and administrative
   
 
3,510
 
   
 
3,445
 
   
 
9,923
 
   
 
11,224
 
Amortization of intangible assets
   
 
472
 
   
 
—  
 
   
 
472
 
   
 
—  
 
Non-recurring charges
   
 
2,258
 
   
 
(690
)
   
 
2,258
 
   
 
(690
)
    
  
  
  
Total operating expenses
   
 
14,304
 
   
 
10,825
 
   
 
32,295
 
   
 
31,830
 
Income from operations
   
 
3,552
 
   
 
6,060
 
   
 
11,212
 
   
 
17,293
 
Non-operating income (expense):
                                    
Interest, net
   
 
(614
)
   
 
(153
)
   
 
(904
)
   
 
(253
)
Foreign exchange, net
   
 
(85
)
   
 
31
 
   
 
(116
)
   
 
(390
)
    
  
  
  
Net non-operating expense
   
 
(699
)
   
 
(122
)
   
 
(1,020
)
   
 
(643
)
    
  
  
  
Income before income taxes
   
 
2,853
 
   
 
5,938
 
   
 
10,192
 
   
 
16,650
 
Provision for income taxes
   
 
1,240
 
   
 
1,982
 
   
 
3,734
 
   
 
5,515
 
    
  
  
  
Net income
   
$
1,613
 
   
$
3,956
 
   
$
6,458
 
   
$
11,135
 
    
  
  
  
Basic net income per share
   
$
0.12
 
   
$
0.32
 
   
$
0.51
 
   
$
0.93
 
Average shares outstanding—basic
   
 
13,175
 
   
 
12,276
 
   
 
12,786
 
   
 
11,974
 
Diluted net income per share
   
$
0.11
 
   
$
0.30
 
   
$
0.47
 
   
$
0.86
 
Average shares outstanding—diluted
   
 
14,267
 
   
 
13,105
 
   
 
13,656
 
   
 
12,918
 
 
See accompanying notes to unaudited consolidated financial statements.

3

Table of Contents
 
PLANAR SYSTEMS, INC. AND SUBSIDIARIES
 
CONSOLIDATED BALANCE SHEETS
(In thousands)
 
    
June 28, 2002
     
Sept. 28, 2001
  
    
(unaudited)
         
ASSETS
                  
Current assets:
                  
Cash and cash equivalents
   
$
33,767
 
   
$
22,007
 
Accounts receivable
   
 
29,397
 
   
 
34,817
 
Inventories
   
 
31,972
 
   
 
23,192
 
Other current assets
   
 
7,766
 
   
 
5,989
 
    
  
Total current assets
   
 
102,902
 
   
 
86,005
 
Property, plant and equipment, net
   
 
36,266
 
   
 
35,460
 
Goodwill
   
 
49,579
 
   
 
3,428
 
Intangible assets
   
 
14,087
 
   
 
—  
 
Other assets
   
 
12,068
 
   
 
11,307
 
    
  
    
$
214,902
 
   
$
136,200
 
    
  
LIABILITIES AND SHAREHOLDERS’ EQUITY
                  
Current liabilities:
                  
Accounts payable
   
$
7,113
 
   
$
8,981
 
Accrued compensation
   
 
4,938
 
   
 
7,096
 
Current portion of long-term debt and capital leases
   
 
9,773
 
   
 
2,019
 
Deferred revenue
   
 
928
 
   
 
478
 
Other current liabilities
   
 
6,561
 
   
 
8,145
 
    
  
Total current liabilities
   
 
29,313
 
   
 
26,719
 
Long-term debt and capital leases, less current portion
   
 
42,813
 
   
 
11,686
 
Other long-term liabilities
   
 
9,002
 
   
 
1,706
 
    
  
Total liabilities
   
 
81,128
 
   
 
40,111
 
Shareholders’ equity:
                  
Common stock
   
 
116,953
 
   
 
87,803
 
Retained earnings
   
 
25,499
 
   
 
19,554
 
Accumulated other comprehensive loss
   
 
(8,678
)
   
 
(11,268
)
    
  
Total shareholders’ equity
   
 
133,774
 
   
 
96,089
 
    
  
    
$
214,902
 
   
$
136,200
 
    
  
 
See accompanying notes to unaudited consolidated financial statements.

4

Table of Contents
PLANAR SYSTEMS, INC. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
    
Nine months ended
  
    
June 28, 2002
     
June 29, 2001
  
Cash flows from operating activities:
                  
Net income
   
$
6,458
 
   
$
11,135
 
Adjustments to reconcile net income to net cash provided by operating activities
                  
Depreciation and amortization
   
 
6,525
 
   
 
4,888
 
Amortization of excess market value of acquired net assets over purchase price
   
 
—  
 
   
 
(120
)
Non-recurring charges
   
 
2,258
 
   
 
(2,042
)
Deferred taxes
   
 
17
 
   
 
(69
)
Foreign exchange (gain) loss
   
 
116
 
   
 
(390
)
(Increase) decrease in accounts receivable
   
 
7,469
 
   
 
(5,720
)
Increase in inventories
   
 
(7,213
)
   
 
(383
)
(Increase) decrease in other current assets
   
 
1,887
 
   
 
(1,012
)
Decrease in accounts payable
   
 
(1,622
)
   
 
(447
)
Increase (decrease) in accrued compensation
   
 
(1,761
)
   
 
2,669
 
Increase (decrease) in deferred revenue
   
 
447
 
   
 
(534
)
Increase (decrease) in other current liabilities
   
 
312
 
   
 
(1,247
)
    
  
Net cash provided by operating activities
   
 
14,893
 
   
 
6,728
 
Cash flows from investing activities:
                  
Purchase of property, plant and equipment
   
 
(4,710
)
   
 
(7,790
)
Investment in a business
   
 
(52,216
)
   
 
(1,533
)
Increase in other long-term liabilities
   
 
480
 
   
 
493
 
Net purchases of long-term investments
   
 
(65
)
   
 
(501
)
    
  
Net cash used in investing activities
   
 
(56,511
)
   
 
(9,331
)
Cash flows from financing activities:
                  
Net proceeds (payments) of long-term debt
   
 
38,509
 
   
 
(1,959
)
Stock repurchase
   
 
(513
)
   
 
—  
 
Net proceeds from issuance of capital stock
   
 
18,009