PHOENIX GOLD INTERNATIONAL INC - 10-Q Quarterly Report

U.S. Securities and Exchange Commission

Washington, D.C. 20549

Form 10-Q

	ý	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
		For the quarterly period ended June 30, 2002

	o	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 000-25866

PHOENIX GOLD INTERNATIONAL, INC.

(Exact name of registrant as specified in its charter)

OREGON	93-1066325
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

9300 NORTH DECATUR STREET, PORTLAND, OREGON		97203
(Address of principal executive offices)		(Zip code)

(503) 286-9300
(Registrant’s telephone number, including area code)

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 ý No o

There were 3,006,945 shares of the issuer’s common stock outstanding as of July 31, 2002.

PHOENIX GOLD INTERNATIONAL, INC.

Form 10-Q for the Quarter Ended June 30, 2002

INDEX

Part I.	FINANCIAL INFORMATION

	Item 1.	Financial Statements

		Balance Sheets at June 30, 2002 and September 30, 2001 (unaudited)

		Statements of Operations for the Three and Nine Months Ended June 30, 2002 and 2001 (unaudited)

		Statements of Cash Flows for the Nine Months Ended June 30, 2002 and 2001 (unaudited)

		Notes to Financial Statements

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations

	Item 3.	Quantitative and Qualitative Disclosure About Market Risk

Part II.	OTHER INFORMATION

	Item 6.	Exhibits and Reports on Form 8-K

SIGNATURES

INDEX TO EXHIBITS

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

PHOENIX GOLD INTERNATIONAL, INC.

BALANCE SHEETS

(Unaudited)

	June 30, 2002		September 30, 2001
ASSETS

Current assets:
Cash and cash equivalents	$	239,982	$	1,002
Accounts receivable, net	4,992,125		5,343,499
Inventories	6,692,436		7,929,111
Prepaid expenses	265,108		267,892
Deferred taxes	560,000		454,000
Total current assets	12,749,651		13,995,504

Property and equipment, net	822,992		849,192
Goodwill, net	242,659		279,807
Deferred taxes	604,000		605,000
Other assets	347,578		447,436
Total assets	$	14,766,880	$	16,176,939

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:
Line of credit	$	—	$	1,157,707
Accounts payable	782,205		1,879,542
Accrued payroll and benefits	524,372		402,305
Accrued customer rebates	583,229		331,873
Other accrued expenses	573,266		479,248
Income taxes payable	158,962		13,391
Total current liabilities	2,622,034		4,264,066

Deferred gain on sale of facility	686,543		760,100

Commitments and contingencies

Shareholders’ equity:
Preferred stock; Authorized – 5,000,000 shares; none outstanding	—		—
Common stock, no par value; Authorized – 20,000,000 shares Issued and outstanding – 3,006,945 and 3,006,945 shares	6,511,528		6,511,528
Retained earnings	4,946,775		4,641,245
Total shareholders’ equity	11,458,303		11,152,773
Total liabilities and shareholders’ equity	$	14,766,880	$	16,176,939

See Notes to Financial Statements

PHOENIX GOLD INTERNATIONAL, INC.

STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended June 30				Nine Months Ended June 30
	2002		2001		2002		2001

Net sales	$	8,063,132	$	7,402,182	$	22,917,242	$	18,886,041

Cost of sales	6,007,312		5,778,166		17,545,997		14,696,366

Gross profit	2,055,820		1,624,016		5,371,245		4,189,675

Operating expenses:
Selling	1,043,935		1,014,875		2,853,860		2,668,196
General and administrative	656,516		605,421		1,997,836		1,789,808

Total operating expenses	1,700,451		1,620,296		4,851,696		4,458,004

Income (loss) from operations	355,369		3,720		519,549