SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(MARK ONE)
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended June 30, 2002 |
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or |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the transition period from to |
Commission File No. 0-22545
DSI Toys, Inc.
(Exact name of Registrant as specified in its charter)
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Texas |
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74-1673513 |
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(State
or other jurisdiction of |
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(I.R.S.
Employer |
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10110 West Sam Houston Parkway South, #150 |
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Houston, Texas |
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77099 |
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(Address of principal executive offices) |
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(Zip Code) |
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Registrant’s telephone number including area code: (713) 365-9900 |
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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 o No o
As of August 9, 2002, 9,066,365 shares of common stock, par value $.01 per share, of DSI Toys, Inc. were outstanding.
TABLE OF CONTENTS
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PART I - FINANCIAL INFORMATION
DSI Toys, Inc.
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June 30, |
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December
31, |
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(Unaudited) |
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ASSETS |
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Current assets: |
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Cash |
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$ |
662,203 |
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$ |
284,637 |
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Accounts receivable, net |
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5,069,000 |
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8,767,550 |
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Inventories |
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6,345,367 |
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6,739,920 |
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Prepaid expenses |
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2,983,625 |
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1,981,592 |
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Deferred income taxes |
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1,820,527 |
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893,000 |
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Total current assets |
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16,880,722 |
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18,666,699 |
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Property and equipment, net |
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2,130,191 |
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1,769,284 |
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Deferred income taxes |
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1,312,000 |
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1,312,000 |
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Goodwill, net |
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9,241,128 |
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9,241,128 |
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Other assets |
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220,119 |
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323,624 |
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Total assets |
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$ |
29,784,160 |
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$ |
31,312,735 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable and accrued liabilities |
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$ |
9,264,968 |
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$ |
6,580,780 |
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Current portion of long-term debt |
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2,139,804 |
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1,120,650 |
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Current portion of long-term debt due to a related party |
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943,076 |
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1,751,485 |
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Income taxes payable |
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168,760 |
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69,638 |
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Total current liabilities |
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12,516,608 |
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9,522,553 |
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Long-term debt |
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4,837,800 |
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9,210,390 |
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Long-term debt due to a related party |
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4,938,764 |
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3,289,552 |
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Deferred income taxes |
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156,642 |
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156,642 |
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Total liabilities |
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22,449,814 |
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22,179,137 |
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Shareholders’ equity: |
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Preferred stock, $.01 par value, 5,000,000 shares authorized, |
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Common stock, $.01 par value, 35,000,000 shares authorized |
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90,664 |
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90,664 |
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Additional paid-in capital |
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5,173,465 |
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5,173,465 |
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Common stock warrants |
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2,802,500 |
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2,802,500 |
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Accumulated other comprehensive loss |
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(69,686 |
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(70,928 |
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Retained earnings (deficit) |
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(662,597 |
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1,137,897 |
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Total shareholders’ equity |
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7,334,346 |
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9,133,598 |
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Total liabilities and shareholders’ equity |
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$ |
29,784,160 |
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$ |
31,312,735 |
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See accompanying notes to consolidated financial statements.
1
DSI Toys, Inc.
Consolidated Statement of Operations
(Unaudited)
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2002 |
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2001 |
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2002 |
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2001 |
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Net sales |
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$ |
8,951,657 |
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$ |
9,416,184 |
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$ |
14,140,517 |
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$ |
16,137,407 |
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Costs of goods sold |
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6,448,409 |
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7,489,073 |
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10,534,117 |
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12,419,030 |
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Gross profit |
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2,503,248 |
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1,927,111 |
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3,606,400 |
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3,718,377 |
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Selling, general and administrative expenses |
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2,926,764 |
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3,997,393 |
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5,966,822 |
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7,976,847 |
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Operating loss |
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(423,516 |
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(2,070,282 |
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(2,360,422 |
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(4,258,470 |
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Interest expense |
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(252,397 |
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(269,711 |
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(450,264 |
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(537,690 |
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Other income (expense) |
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(62,087 |
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25,415 |
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82,665 |
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59,790 |
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Loss before income taxes |
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(738,000 |
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(2,314,578 |
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(2,728,021 |
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(4,736,370 |
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Benefit from income taxes |
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250,920 |
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833,248 |
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927,527 |
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1,705,093 |
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Net loss |
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$ |
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