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 September 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 0-13257.
NORTECH SYSTEMS INCORPORATED
(Exact name of registrant as specified in its chapter)
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MINNESOTA |
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41-1681094 |
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(State of other
jurisdiction of |
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(I.R.S. Employer |
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1120 Wayzata Blvd East Suite 201, Wayzata, MN |
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55391 |
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(Address of principal executive offices) |
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(Zip Code) |
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(952) 345-2277 |
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(Registrant’s telephone number, including area code) |
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Securities registered pursuant to Section 12(b) of the Act: |
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None |
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Securities registered pursuant to Section 12(b) of the Act: |
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Common Stock, $.01 per share per value. |
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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 ý NO o
APPLICABLE ONLY TO CORPORATE REGISTRANTS
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of latest practicable date.
As of November 5, 2002, there were 2,441,902 shares of the Company’s $.01 per share par value common stock outstanding.
(The remainder of this page was intentionally left blank.)
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NORTECH SYSTEMS INCORPORATED
FORM 10-Q
QUARTER ENDED September 30, 2002
INDEX
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PART I - FINANCIAL INFORMATION |
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Item 1 |
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Financial Statements |
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Management’s Discussion and Analysis of Financial Condition And Results of Operations |
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3
NORTECH SYSTEMS INCORPORATED
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2002 AND DECEMBER 31, 2001
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SEPTEMBER 30 |
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DECEMBER 31 |
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ASSETS |
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(UNAUDITED) |
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(AUDITED) |
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Current Assets |
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Cash and cash equivalents |
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$ |
215,000 |
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$ |
181,730 |
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Accounts receivable, net of allowance |
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8,132,964 |
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9,110,730 |
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Inventories: |
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Finished goods |
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2,499,196 |
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1,698,373 |
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Work in process |
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1,650,929 |
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1,676,730 |
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Raw materials |
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8,415,385 |
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9,076,376 |
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Total Inventories |
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$ |
12,565,510 |
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$ |
12,451,479 |
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Prepaid expenses and other |
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409,501 |
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306,428 |
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Deferred tax assets |
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1,571,000 |
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1,492,000 |
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Total Current Assets |
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$ |
22,893,975 |
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$ |
23,542,367 |
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Property and Equipment |
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Land and building/leaseholds |
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$ |
4,778,027 |
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$ |
4,550,966 |
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Manufacturing equipment |
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5,539,255 |
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4,878,954 |
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Office and other equipment |
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2,642,598 |
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2,434,429 |
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Total Property and Equipment |
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$ |
12,959,880 |
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$ |
11,864,349 |
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Accumulated depreciation |
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(6,942,885 |
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(5,999,451 |
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Net Property and Equipment |
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$ |
6,016,995 |
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$ |
5,864,898 |
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Other Assets |
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Goodwill and other intangible assets |
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1,767,843 |
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83,478 |
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Other assets |
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74,409 |
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— |
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Other assets from discontinued operations |
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16,795 |
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Total Other Assets |
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$ |
1,842,252 |
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100,273 |
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Total Assets |
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$ |
30,753,222 |
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$ |
29,507,538 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current Liabilities |
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Current maturities of notes and capital lease payable |
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$ |
868,243 |
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$ |
501,681 |
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Accounts payable |
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4,229,653 |
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4,866,442 |
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Accrued payrolls and commissions |
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2,798,825 |
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2,171,124 |
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Accured income taxes |
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63,256 |
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538,706 |
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Other liabilities |
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1,604,505 |
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845,586 |
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Net current liabilities from discontinued operations |
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23,277 |
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159,484 |
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Total Current Liabilities |
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$ |
9,587,759 |
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$ |
9,083,023 |
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Long-Term Liabilities |
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Notes and capital lease payable (net of current maturities) |
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$ |
8,606,779 |
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$ |
9,791,722 |
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Deferred tax liability |
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160,000 |
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61,000 |
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Total Long-Term Liabilities |
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$ |
8,766,779 |
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$ |
9,852,722 |
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Total Liabilities |
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$ |
18,354,538 |
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$ |
18,935,745 |
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Shareholders’ Equity |
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Preferred Stock, $1 par value; 1,000,000 shares authorized; 250,000 shares issued and outstanding |
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$ |
250,000 |
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$ |
250,000 |
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Common Stock - $0.01 par value; 9,000,000 shares authorized; 2,413,281 and 2,361,192 shares issued and outstanding at September 30, 2002 and December 31, 2001, respectively |
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24,133 |
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23,612 |
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Additional paid-in capital |
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12,361,610 |
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12,179,399 |
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Accumulated deficit |
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(237,059 |
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(1,881,218 |
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Total Shareholders’ Equity |
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$ |
12,398,684 |
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$ |
10,571,793 |
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Total Liabilities & Shareholders’ Equity |
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$ |
30,753,222 |
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$ |
29,507,538 | |