UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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 March 29, 2003 |
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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 |
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COMMISSION FILE NUMBER 0-13198 |
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MORTON INDUSTRIAL GROUP, INC.
(Exact name of registrant as specified in its charter)
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Georgia |
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38-0811650 |
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(State or other
jurisdiction of |
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(IRS Employer |
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1021 W. Birchwood, Morton, Illinois 61550 |
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(Address of principal executive offices) |
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(309) 266-7176 |
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(Registrant’s telephone number, including area code) |
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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
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act). Yes o No ý
The aggregate market value of the common stock held by non-affiliates of the registrant (based upon the last reported sale price on the Nasdaq Small Cap Market) on the last business day of the registrant’s most recently completed second fiscal quarter was approximately $440,000.
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Outstanding
as of |
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Class A Common Stock, $.01 par value |
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4,460,547 |
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Class B Common Stock, $.01 par value |
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200,000 |
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MORTON INDUSTRIAL GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
For the Three Months Ended March 29, 2003 and March 30, 2002
(Dollars in thousands, except per share data)
(Unaudited)
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Three Months Ended |
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March 29, 2003 |
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March 30, 2002 |
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Net sales |
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$ |
32,380 |
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29,177 |
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Cost of sales |
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27,789 |
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25,060 |
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Gross profit |
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4,591 |
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4,117 |
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Operating expenses: |
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Selling expenses |
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701 |
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706 |
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Administrative expenses |
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2,607 |
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2,251 |
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Total operating expenses |
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3,308 |
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2,957 |
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Operating income |
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1,283 |
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1,160 |
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Other income (expense): |
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Interest expense |
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(933 |
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(1,213 |
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Other |
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166 |
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237 |
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Total other income (expense) |
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(767 |
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(976 |
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Earnings before income taxes and discontinued operations |
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516 |
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184 |
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Income taxes |
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200 |
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— |
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Earnings before discontinued operations |
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316 |
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184 |
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Discontinued operations (note 3): |
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Net earnings (loss) from operations of discontinued plastics operations |
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225 |
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(526 |
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Income taxes |
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90 |
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— |
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135 |
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(526 |
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Net earnings (loss) |
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451 |
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(342 |
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Accretion of discount on preferred shares |
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(332 |
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(279 |
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Net earnings (loss) available to common shareholders |
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$ |
119 |
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(621 |
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Earnings (loss) per common share – basic and diluted: |
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Earnings (loss) from continuing operations |
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$ |
0.00 |
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(0.02 |
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Earnings (loss) from discontinued operations |
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0.03 |
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(0.12 |
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Net earnings (loss) available to common shareholders |
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$ |
0.03 |
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(0.14 |
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See accompanying notes to condensed consolidated financial statements.
2
MORTON INDUSTRIAL GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
March 29, 2003 and December 31, 2002
(Dollars in thousands)
(Unaudited)
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March 29, |
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December 31, |
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Assets |
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Current assets: |
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Trade accounts receivable, less allowance for doubtful accounts of $132 in 2003 and $92 in 2002 |
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$ |
7,612 |
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5,251 |
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Inventories |
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12,138 |
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14,322 |
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Prepaid expenses and other current assets |
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1,902 |
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1,179 |
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Deferred income taxes |
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110 |
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400 |
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Assets held for sale |
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8,766 |
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8,990 |
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Total current assets |
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30,528 |
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30,142 |
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Property, plant, and equipment, net |
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22,996 |
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23,364 |
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Intangible assets, at cost, less accumulated amortization |
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1,360 |
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1,336 |
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Deferred income taxes |
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1,351 |
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1,351 |
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Other assets |
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613 |
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660 |
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$ |
56,848 |
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56,853 |
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Liabilities and Stockholders’ Equity (Deficit) |
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Current liabilities: |
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Outstanding checks in excess of bank balance |
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$ |
2,645 |
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1,289 |
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Current installments of long-term debt |
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5,439 |
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5,331 |
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Accounts payable |
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12,189 |
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14,731 |
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Accrued expenses |
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6,449 |
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4,831 |
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Liabilities held for sale |
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6,353 |
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6,254 |
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Total current liabilities |
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33,075 |
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32,436 |
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Long-term debt, excluding current installments |
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38,647 |
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39,771 |
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Other liabilities |
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291 |
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262 |
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Total liabilities |
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72,013 |
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72,469 |
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Redeemable preferred stock |
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8,940 |
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8,608 |
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Stockholders’ equity (deficit): |
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Class A common stock |
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45 |
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45 |
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Class B common stock |
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2 |
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2 |
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Additional paid-in capital |
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20,895 |
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20,895 |
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Retained deficit |
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(45,047 |
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(45,166 |
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Total stockholders’ equity (deficit) |
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(24,105 |
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(24,224 |
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$ |
56,848 |
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56,853 |
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See accompanying notes to condensed consolidated financial statements.
3
MORTON INDUSTRIAL GROUP, INC. AND SUBSIDIARIES
Consolidated Statement of Stockholders’ Equity (Deficit)
For the Three Months Ended March 29, 2003
(Dollars in thousands)
(Unaudited)
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Class A |
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Class B |
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Additional |
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Retained |
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Total |
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Shares |
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Amount |
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Shares |
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Amount |
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Balance, December 31, 2002 |
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4,460,547 |
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$ |
45 |
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200,000 |
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$ |
2 |
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$ |
20,895 |
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$ |
(45,166 |
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$ |
(24,224 |
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Net earnings |
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— |
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— |
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