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 March 28, 2003
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) 748-1100
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
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act) x Yes ¨ No
Number of common stock outstanding as of April 28, 2003
14,008,959 shares, no par value per share
INDEX
| Page | ||||
| Part I. |
Financial Information |
|||
| Item 1. |
Financial Statements |
|||
| 3 | ||||
| Consolidated Balance Sheets as of March 28, 2003 and September 27, 2002 |
4 | |||
| Consolidated Statements of Cash Flows for the Six Months Ended March 28, 2003 and March 29, 2002 |
5 | |||
| 6 | ||||
| Management’s Discussion and Analysis of Financial Condition and Results of Operations |
10 | |||
| 15 | ||||
| 15 | ||||
| Part II. |
Other Information |
|||
| 16 | ||||
| 16 | ||||
| 16 | ||||
| 22 | ||||
| 23 |
2
Part 1. FINANCIAL INFORMATION
Item 1. Financial Statements
Planar Systems, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(unaudited)
| Three months ended |
Six months ended |
|||||||||||||||
| Mar. 28, 2003 |
Mar. 29, 2002 |
Mar. 28, 2003 |
Mar. 29, 2002 |
|||||||||||||
| Sales |
$ |
60,104 |
|
$ |
48,857 |
|
$ |
116,847 |
|
$ |
89,642 |
| ||||
| Cost of sales |
|
40,726 |
|
|
35,658 |
|
|
80,703 |
|
|
63,991 |
| ||||
| Gross profit |
|
19,378 |
|
|
13,199 |
|
|
36,144 |
|
|
25,651 |
| ||||
| Operating expenses: |
||||||||||||||||
| Research and development, net |
|
3,066 |
|
|
2,679 |
|
|
5,463 |
|
|
5,309 |
| ||||
| Sales and marketing |
|
5,129 |
|
|
3,427 |
|
|
9,822 |
|
|
6,269 |
| ||||
| General and administrative |
|
4,697 |
|
|
3,251 |
|
|
9,061 |
|
|
6,413 |
| ||||
| Amortization of intangible assets |
|
708 |
|
|
— |
|
|
1,416 |
|
|
— |
| ||||
| Total operating expenses |
|
13,600 |
|
|
9,357 |
|
|
25,762 |
|
|
17,991 |
| ||||
| Income from operations |
|
5,778 |
|
|
3,842 |
|
|
10,382 |
|
|
7,660 |
| ||||
| Non-operating income (expense): |
||||||||||||||||
| Interest, net |
|
(346 |
) |
|
(171 |
) |
|
(811 |
) |
|
(290 |
) | ||||
| Foreign exchange, net |
|
(51 |
) |
|
(29 |
) |
|
(83 |
) |
|
(31 |
) | ||||
| Net non-operating expense |
|
(397 |
) |
|
(200 |
) |
|
(894 |
) |
|
(321 |
) | ||||
| Income before income taxes |
|
5,381 |
|
|
3,642 |
|
|
9,488 |
|
|
7,339 |
| ||||
| Provision for income taxes |
|
1,830 |
|
|
1,237 |
|
|
3,227 |
|
|
2,494 |
| ||||
| Net income |
$ |
3,551 |
|
$ |
2,405 |
|
$ |
6,261 |
|
$ |
4,845 |
| ||||
| Basic net income per share |
$ |
0.25 |
|
$ |
0.19 |
|
$ |
0.45 |
|
$ |
0.39 |
| ||||
| Average shares outstanding—basic |
|
13,936 |
|
|
12,578 |
|
|
13,864 |
|
|
12,563 |
| ||||
| Diluted net income per share |
$ |
0.25 |
|
$ |
0.18 |
|
$ |
0.43 |
|
$ |
0.36 |
| ||||
| Average shares outstanding—diluted |
|
14,391 |
|
|
13,415 |
|
|
14,414 |
|
|
13,323 |
| ||||
See accompanying notes to unaudited consolidated financial statements.
3
PLANAR SYSTEMS, INC.
(In thousands)
| Mar. 28, 2003 |
Sept. 27, 2002 |
|||||||
| (unaudited) |
||||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ |
37,604 |
|
$ |
37,451 |
| ||
| Accounts receivable |
|
30,069 |
|
|
31,437 |
| ||
| Inventories |
|
28,659 |
|
|
29,305 |
| ||
| Other current assets |
|
13,082 |
|
|
13,409 |
| ||
| Total current assets |
|
109,414 |
|
|
111,602 |
| ||
| Property, plant and equipment, net |
|
22,218 |
|
|
24,669 |
| ||
| Goodwill |
|
49,001 |
|
|
49,001 |
| ||
| Intangible assets |
|
11,963 |
|
|
13,379 |
| ||
| Other assets |
|
7,694 |
|
|
7,820 |
| ||
| $ |
200,290 |
|
$ |
206,471 |
| |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| Current liabilities: |
||||||||
| Accounts payable |
$ |
8,340 |
|
$ |
5,330 |
| ||
| Accrued compensation |
|
6,577 |
|
|
6,006 |
| ||
| Current portion of long-term debt and capital leases |
|
6,298 |
|
|
11,923 |
| ||
| Deferred revenue |
|
317 |
|
|
603 |
| ||
| Other current liabilities |
|
12,875 |
|
|
11,307 |
| ||
| Total current liabilities |
|
34,407 |
|
|
35,169 |
| ||
| Long-term debt and capital leases, less current portion |
|
23,965 |
|
|
39,282 |
| ||
| Other long-term liabilities |
|
7,529 |
|
|
7,661 |
| ||
| Total liabilities |
|
65,901 |
|
|
82,112 |
| ||
| Shareholders’ equity: |
||||||||
| Common stock |
|
119,614 |
|
|
117,520 |
| ||
| Retained earnings |
|
22,037 |
|
|
15,938 |
| ||
| Accumulated other comprehensive loss |
|
(7,262 |
) |
|
(9,099 |
) | ||
| Total shareholders’ equity |
|
134,389 |
|
|
124,359 |
| ||
| $ |
200,290 |
|
$ |
206,471 |
| |||
See accompanying notes to unaudited consolidated financial statements.
4
PLANAR SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| Six months ended |
||||||||
| Mar. 28, 2003 |
Mar. 29, 2002 |
|||||||
| Cash flows from operating activities: |
||||||||
| Net income |
$ |
6,261 |
|
$ |
4,845 |
| ||
| Adjustments to reconcile net income to net cash provided by operating activities |
||||||||
| Depreciation and amortization |
|
5,552 |
|
|
3,819 |
| ||
| Deferred taxes |
|
(28 |
) |
|
18 |
| ||
| Foreign exchange loss |
|
83 |
|
|
31 |
| ||
| Decrease in accounts receivable |
|
1,614 |
|
|
5,789 |
|||