UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
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(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 August 31, 2002. |
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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 Number: 000-24413
TROY GROUP, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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33-0807798 |
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(State or other jurisdiction of |
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(I.R.S. Employer Identification No.) |
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incorporation or organization) |
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2331 South Pullman Street |
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Santa Ana, California |
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92705 |
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(Address of principal executive offices) |
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(Zip code) |
(949) 250-3280
(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
As of October 11, 2002, there were 10,649,092 shares of our common stock outstanding.
TROY GROUP, INC.
Quarterly Report on Form 10-Q for the
Quarterly Period Ended August 31, 2002
INDEX
2
ITEM 1. — FINANCIAL STATEMENTS
TROY
GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
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Assets |
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August 31, |
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November 30, |
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2002 |
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2001 |
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(Unaudited) |
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Current assets: |
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Cash and cash equivalents |
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$ |
5,459 |
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$ |
1,210 |
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Investment in available-for-sale securities |
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1,323 |
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5,181 |
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Accounts receivable, less allowance for doubtful accounts of $706 and $1,130, respectively |
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7,399 |
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9,713 |
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Income tax refund receivable |
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1,373 |
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1,059 |
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Inventories |
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7,135 |
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9,251 |
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Prepaid expenses and other |
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807 |
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358 |
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Deferred tax assets |
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2,480 |
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2,480 |
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Total current assets |
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25,976 |
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29,252 |
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Equipment and leasehold improvements, net |
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2,186 |
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2,529 |
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Other assets, including receivable from stockholders of $2,123 at August 31, 2002 and $1,666 at November 30, 2002 |
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5,210 |
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5,226 |
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Total assets |
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$ |
33,372 |
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$ |
37,007 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Current portion of long-term debt |
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$ |
72 |
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70 |
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Accounts payable |
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2,492 |
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4,418 |
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Accrued expenses |
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2,353 |
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2,456 |
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Deferred revenue |
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972 |
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1,138 |
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Total current liabilities |
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5,889 |
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8,082 |
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Long-term debt, net of current portion |
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139 |
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193 |
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Stockholders’ equity: |
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Preferred stock, par value $.01 per share, authorized 5,000,000 shares, |
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issued none |
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— |
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— |
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Common stock, par value $.01 per share; authorized 50,000,000 shares, issued 2002 10,969,657 shares; and 2001 10,921,032 shares |
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110 |
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109 |
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Additional paid-in capital |
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21,113 |
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20,966 |
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Retained earnings |
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7,296 |
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8,753 |
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28,519 |
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29,828 |
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Less cost of treasury stock — 320,565 common shares in 2002 and 295,320 in 2001 |
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1,175 |
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1,096 |
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Total stockholders’ equity |
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27,344 |
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28,732 |
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Total liabilities and stockholders’ equity |
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$ |
33,372 |
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$ |
37,007 |
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See Notes to Consolidated Financial Statements.
3
TROY GROUP, INC.
OF OPERATIONS
(Unaudited)
(in thousands, except per share amounts)
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Three Months Ended |
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Nine Months Ended |
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August 31, |
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August 31, |
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August 31, |
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August 31, |
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Net sales |
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$ |
13,649 |
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$ |
13,674 |
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$ |
41,245 |
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$ |
34,783 |
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Cost of goods sold |
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10,214 |
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8,161 |
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26,658 |
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21,243 |
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Gross profit |
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3,435 |
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5,513 |
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14,587 |
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13,540 |
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Operating expenses: |
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Selling, general and administrative |
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3,415 |
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3,584 |
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11,282 |
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11,533 |
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Research and development |
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1,696 |
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1,379 |
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5,221 |
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4,400 |
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Amortization of intangible assets |
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130 |
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320 |
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390 |
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960 |
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Operating income (loss) |
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(1,806 |
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230 |
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(2,306 |
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(3,353 |
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Interest income |
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17 |
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102 |
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96 |
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