FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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x |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended February 28, 2003
or
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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: 0-12395
ALCIDE CORPORATION
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Delaware |
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22-2445061 |
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State or other jurisdiction of incorporation or organization |
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(I.R.S. Employer Identification No.) |
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8561 154th Avenue North East, Redmond WA |
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98052 |
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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 |
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(425) 882-2555 |
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.
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YES |
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x |
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NO |
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o |
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
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YES |
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o |
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NO |
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x |
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of February 28, 2003: 2,664,638, net of Treasury Stock.
ALCIDE CORPORATION
INDEX
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PART I. |
FINANCIAL INFORMATION |
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Item 1. Financial Statements (unaudited) |
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Condensed Consolidated Balance Sheets – February 28, 2003 and May 31, 2002 |
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Notes to Unaudited Condensed Consolidated Financial Statements |
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3. Quantitative and Qualitative Disclosures About Market Risk |
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2
ALCIDE CORPORATION UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
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February 28, 2003 |
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May 31, 2002 |
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Assets: |
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Current assets: |
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Cash and cash equivalents |
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$ |
3,723,597 |
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$ |
2,847,581 |
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Accounts receivable – trade, net |
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3,855,553 |
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2,849,103 |
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Inventory |
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2,015,538 |
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1,823,691 |
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Deferred and prepaid income taxes |
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311,204 |
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434,200 |
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Spare parts |
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838,808 |
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652,620 |
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Prepaid expenses and other current assets |
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323,266 |
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412,118 |
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Total current assets |
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11,067,966 |
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9,019,313 |
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Equipment and leasehold improvements: |
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SANOVA plant assets |
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16,638,289 |
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14,376,961 |
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Construction in progress |
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2,508,743 |
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3,009,716 |
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Office equipment |
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564,323 |
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553,539 |
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Laboratory, manufacturing equipment and vehicles |
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523,718 |
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451,824 |
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Leasehold improvements |
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73,483 |
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73,483 |
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Less: Accumulated depreciation and amortization |
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(8,836,531 |
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(6,118,278 |
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Total equipment and leasehold improvements, net |
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11,472,025 |
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12,347,245 |
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Goodwill |
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478,807 |
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478,807 |
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Other assets |
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16,430 |
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19,968 |
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Total Assets |
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$ |
23,035,228 |
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$ |
21,865,333 |
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Liabilities and Shareholders’ Equity: |
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Current liabilities: |
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Accounts payable |
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$ |
810,074 |
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$ |
743,514 |
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Accrued expenses |
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385,555 |
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626,953 |
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Line of credit payable |
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2,000,000 |
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2,000,000 |
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Total current liabilities |
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3,195,629 |
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3,370,467 |
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Deferred tax liability |
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585,500 |
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94,837 |
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Other long-term liabilities |
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— |
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26,346 |
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Total Liabilities |
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3,781,129 |
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3,491,650 |
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Commitments and Contingencies |
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Redeemable Class “B” Preferred Stock - $.01 par value; authorized 10,000,000 shares; issued and outstanding: February 28, 2003 – 63,675; May 31, 2002 – 68,425 |
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167,145 |
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179,614 |
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Shareholders’ equity: |
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Class “A” Preferred Stock - no par value, authorized 1,000 shares; issued and outstanding: February 28, 2003 – 138; May 31, 2002 - 138 |
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18,636 |
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18,636 |
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Common Stock - $.01 par value; authorized 100,000,000 shares; issued: February 28, 2003 – 3,040,597; May 31, 2002 – 3,031,292 |
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30,406 |
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30,313 |
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Common treasury stock at cost February 28, 2003 – 375,959; May 31, 2002 - 375,959 |
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(7,144,721 |
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(7,144,721 |
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Additional paid-in capital |
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21,502,827 |
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21,386,417 |
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Retained earnings |
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4,679,806 |
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3,903,424 |
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Total Shareholders’ Equity |
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19,086,954 |
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18,194,069 |
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Total Liabilities and Shareholders’ Equity |
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$ |
23,035,228 |
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$ |
21,865,333 |
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See notes to Unaudited Condensed Consolidated Financial Statements.
3
ALCIDE CORPORATION UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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For the Three Months Ended |
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For the Nine Months Ended |
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2003 |
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2002 |
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2003 |
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2002 |
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Revenue: |
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Net sales |
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$ |
5,172,872 |
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$ |
5,500,252 |
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$ |
15,736,462 |
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$ |
16,632,062 |
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License revenue |
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330,722 |
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— |
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590,876 |
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— |
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Total revenue |
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5,503,594 |
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5,500,252 |
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16,327,338 |
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16,632,062 |
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Expenditures: |
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Cost of goods sold |
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3,095,239 |
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2,913,369 |
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8,986,635 |
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8,643,194 |
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Research and development expense |
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520,678 |
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573,978 |
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1,674,636 |
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2,058,993 |
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Consulting expense to related parties |
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15,000 |
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15,000 |
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45,000 |
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59,000 |
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Selling, general and administrative expense |
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1,441,805 |
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1,167,953 |
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4,421,222 |
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3,906,317 |
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Total expenditures |
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5,072,722 |
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4,670,300 |
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15,127,493 |
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14,667,504 |
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Operating income |
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430,872 |
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829,952 |
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1,199,845 |
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1,964,558 |
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Interest income |
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5,945 |
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11,693 |
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20,013 |
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63,826 |
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Interest expense |
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(15,219 |
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(20,591 |
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(53,072 |
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(67,549 |
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