Back to GetFilings.com



Table of Contents

 
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 October 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 0-12448
 

 
FLOW INTERNATIONAL CORPORATION
 
WASHINGTON
 
91-1104842
(State or other jurisdiction
of incorporation or organization)
 
(I.R.S. Employer
Identification No.)
 
23500 – 64th Avenue South
Kent, Washington 98032
(253) 850-3500
 

 
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  ¨
 
The number of shares outstanding of common stock, as of November 29, 2002 is 15,358,759 shares.
 


Table of Contents
FLOW INTERNATIONAL CORPORATION
 
INDEX
 
         
Page

Part I—FINANCIAL INFORMATION
    
        Item 1.
  
Consolidated Financial Statements
    
       
3
       
4
       
5
       
6
       
7
       
8
        Item 2.
     
16
        Item 3.
     
28
        Item 4.
     
28
Part II—OTHER INFORMATION
    
        Item 1.
     
29
        Item 2.
     
29
        Item 3.
     
29
        Item 4.
     
29
        Item 5.
     
29
        Item 6.
     
29
  
31
  
32

2


Table of Contents
FLOW INTERNATIONAL CORPORATION
 
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
 
    
October 31, 2002

    
April 30, 2002

 
    
(unaudited)
        
ASSETS
                 
Current Assets:
                 
Cash and Cash Equivalents
  
$
7,419
 
  
$
7,120
 
Receivables, Net
  
 
59,993
 
  
 
62,774
 
Inventories
  
 
44,745
 
  
 
48,164
 
Deferred Income Taxes
  
 
1,831
 
  
 
1,980
 
Other Current Assets
  
 
9,229
 
  
 
11,608
 
    


  


Total Current Assets
  
 
123,217
 
  
 
131,646
 
Equipment Held for Lease, Net
  
 
3,387
 
  
 
5,968
 
Property and Equipment, Net
  
 
16,052
 
  
 
16,996
 
Intangible Assets, Net of Accumulated Amortization of $9,294 and $8,735, respectively
  
 
12,077
 
  
 
13,182
 
Goodwill
  
 
16,545
 
  
 
16,332
 
Deferred Income Taxes
  
 
229
 
  
 
5,115
 
Other Assets
  
 
20,388
 
  
 
17,237
 
    


  


    
$
191,895
 
  
$
206,476
 
    


  


LIABILITIES, MINORITY INTEREST AND STOCKHOLDERS’ EQUITY
                 
Current Liabilities:
                 
Notes Payable
  
$
4,084
 
  
$
374
 
Current Portion of Long-Term Obligations
  
 
92,005
 
  
 
6,114
 
Accounts Payable
  
 
9,894
 
  
 
11,617
 
Accrued Payroll and Related Liabilities
  
 
4,936
 
  
 
4,844
 
Other Accrued Taxes
  
 
973
 
  
 
2,530
 
Deferred Revenue
  
 
3,824
 
  
 
3,613
 
Other Accrued Liabilities
  
 
5,071
 
  
 
14,920
 
    


  


Total Current Liabilities
  
 
120,787
 
  
 
44,012
 
Long-Term Obligations
  
 
—  
 
  
 
81,625
 
Customer Deposits
  
 
7,991
 
  
 
7,909
 
    


  


Total Liabilities
  
 
128,778
 
  
 
133,546
 
Minority Interest
  
 
2,337
 
  
 
2,246
 
Stockholders’ Equity:
                 
Series A 8% Convertible Preferred Stock – $.01 par value, 1,000,000 shares authorized, none issued
                 
Common Stock—$.01 par value, 20,000,000 shares authorized, 15,358,759 shares outstanding at October 31, 2002 15,281,759 shares outstanding at April 30, 2002
  
 
154
 
  
 
153
 
Capital in Excess of Par
  
 
55,598
 
  
 
55,158
 
Retained Earnings
  
 
17,343
 
  
 
29,206
 
Accumulated Other Comprehensive Loss
  
 
(12,315
)
  
 
(13,833
)
    


  


Total Stockholders’ Equity
  
 
60,780
 
  
 
70,684
 
    


  


    
$
191,895
 
  
$
206,476
 
    


  


 
See Accompanying Notes to
Condensed Consolidated Financial Statements

3


Table of Contents
FLOW INTERNATIONAL CORPORATION
 
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited; in thousands, except per share data)
 
    
Three Months Ended October 31,

 
    
2002

    
2001

 
Revenues
  
$
44,196
 
  
$
44,238
 
Cost of Sales
  
 
28,585
 
  
 
25,969
 
    


  


Gross Profit
  
 
15,611
 
  
 
18,269
 
Expenses:
                 
Marketing
  
 
8,040
 
  
 
7,735
 
Research and Engineering
  
 
3,111
 
  
 
3,388
 
General and Administrative
  
 
4,537
 
  
 
4,184
 
    


  


    
 
15,688
 
  
 
15,307
 
    


  


Operating (Loss) Income
  
 
(77
)
  
 
2,962
 
Interest Expense, Net
  
 
2,829
 
  
 
2,464
 
Other Expense (Income), Net
  
 
498
 
  
 
(63
)
    


  


(Loss) Income Before Provision for Income Taxes
  
 
(3,404
)
  
 
561
 
Provision for Income Taxes
  
 
(4,479
)
  
 
(185
)
    


  


Net (Loss) Income
  
$
(7,883
)
  
$
376
 
    


  


Basic (Loss) Earnings Per Share
  
$
(.51
)
  
$
.02
 
    


  


Diluted (Loss) Earnings Per Share
  
$
(.51
)
  
$
.02
 
    


  


Weighted Average Shares Used in Computing Basic and Diluted (Loss) Earnings Per Share
                 
Basic
  
 
15,359
 
  
 
15,236
 
Diluted
  
 
15,359
 
  
 
16,315
 
 
See Accompanying Notes to
Condensed Consolidated Financial Statements

4


Table of Contents
FLOW INTERNATIONAL CORPORATION
 
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited; in thousands, except per share data)
 
    
Six Months Ended October 31,

 
    
2002

    
2001

 
Revenues
  
$
84,673
 
  
$
90,840
 
Cost of Sales
  
 
56,123
 
  
 
53,797
 
    


  


Gross Profit
  
 
28,550
 
  
 
37,043
 
Expenses:
                 
Marketing
  
 
16,279
 
  
 
15,244
 
Research and Engineering
  
 
6,628
 
  
 
7,287
 
General and Administrative
  
 
9,165
 
  
 
8,464
 
    


  


    
 
32,072
 
  
 
30,995
 
    


  


Operating (Loss) Income
  
 
(3,522
)
  
 
6,048
 
Interest Expense, Net
  
 
5,003
 
  
 
4,558
 
Other Expense, Net
  
 
819
 
  
 
302
 
    


  


(Loss) Income Before Provision for Income Taxes
  
 
(9,344
)
  
 
1,188
 
Provision for Income Taxes
  
 
(2,519
)
  
 
(392
)
    


  


Net (Loss) Income
  
$
(11,863
)
  
$
796
 
    


  


Basic (Loss) Earnings Per Share
  
$
(.77
)
  
$
.05
 
    


  


Diluted (Loss) Earnings Per Share
  
$
(.77
)
  
$
.05
 
    


  


Weighted Average Shares Used in Computing Basic and Diluted (Loss) Earnings Per Share
                 
Basic
  
 
15,338
 
  
 
15,204
 
Diluted
  
 
15,338
 
  
 
16,243
 
 
See Accompanying Notes to
Condensed Consolidated Financial Statements

5


Table of Contents
FLOW INTERNATIONAL CORPORATION
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited; in thousands)
 
    
Six Months Ended October 31,

 
    
2002

    
2001

 
Cash Flows from Operating Activities:
                 
Net (Loss) Income
  
$
(11,863
)
  
$
796
 
Adjustments to Reconcile Net (Loss) Income to Cash (Used in) Provided by Operating Activities:
                 
Depreciation and Amortization
  
 
4,606
 
  
 
3,666
 
Valuation Reserve for Deferred Tax Assets
  
 
5,603
 
  
 
—  
 
Other Non-Cash Items
  
 
1,142
 
  
 
793
 
Decrease (Increase) in Assets
  
 
3,360
 
  
 
(5,904
)
(Decrease) Increase in Liabilities
  
 
(12,412
)
  
 
851
 
    


  


Cash (Used in) Provided by Operating Activities
  
 
(9,564
)
  
 
202
 
    


  


Cash Flows from Investing Activities: