UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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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 31, 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: 0-26524
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MACKIE DESIGNS INC. |
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(Exact name of registrant as specified in its charter) |
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Washington |
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91-1432133 |
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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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16220 Wood-Red Road, N.E., Woodinville, Washington |
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98072 |
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(Address of principal executive offices) |
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(Zip Code) |
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(425) 487-4333 |
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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 Exchange Act). Yes o No ý
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
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Common Stock, no par value |
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19,499,969 |
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Class |
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Number of Shares Outstanding |
MACKIE DESIGNS INC.
FORM 10-Q
For the quarter ended March 31, 2003
INDEX
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Condensed Consolidated Statements of Changes in Shareholders’ Equity and Comprehensive Loss |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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2
PART I.
FINANCIAL INFORMATION
Item 1.
Financial Statements
MACKIE DESIGNS INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
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March 31, |
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December
31, |
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(In
thousands, |
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ASSETS |
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Current assets: |
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Cash |
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$ |
1,714 |
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$ |
3,062 |
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Accounts receivable, less allowance for doubtful accounts of $3,019 and $2,684, respectively |
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29,691 |
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31,225 |
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Income taxes receivable |
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2,216 |
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2,437 |
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Inventories |
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45,074 |
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50,165 |
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Prepaid expenses and other current assets |
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7,670 |
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6,269 |
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Deferred income taxes |
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1,938 |
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1,875 |
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Total current assets |
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88,303 |
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95,033 |
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Property, plant and equipment, net |
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20,470 |
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22,043 |
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Intangible assets, net |
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5,870 |
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5,675 |
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Other assets, net |
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1,199 |
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1,204 |
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Total assets |
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$ |
115,842 |
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$ |
123,955 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current liabilities: |
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Short-term borrowings |
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$ |
33,882 |
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$ |
39,152 |
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Accounts payable |
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20,867 |
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22,235 |
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Accrued liabilities |
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10,613 |
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10,670 |
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Income taxes payable |
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1,059 |
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140 |
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Current portion of long-term debt |
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6,108 |
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7,946 |
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Total current liabilities |
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72,529 |
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80,143 |
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Long-term debt, excluding current portion |
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23,469 |
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20,266 |
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Employee and other liabilities |
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4,585 |
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4,435 |
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Deferred income taxes |
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1,938 |
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1,875 |
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Total liabilities |
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102,521 |
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106,719 |
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Commitments and contingencies |
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Shareholders’ equity: |
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Common stock |
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33,919 |
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29,345 |
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Accumulated deficit |
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(19,766 |
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(11,372 |
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Accumulated other comprehensive loss |
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(832 |
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(737 |
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Total shareholders’ equity |
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13,321 |
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17,236 |
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Total liabilities and shareholders’ equity |
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$ |
115,842 |
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$ |
123,955 |
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See accompanying Notes to Condensed Consolidated Financial Statements.
3
MACKIE DESIGNS INC.
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS
(Unaudited)
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Three
months ended |
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2003 |
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2002 |
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(In thousands, except for per share data) |
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Net sales |
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$ |
40,539 |
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$ |
49,119 |
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Cost of sales |
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32,902 |
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33,192 |
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Gross profit |
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7,637 |
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15,927 |
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Operating expenses: |
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Selling, general and administrative |
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12,149 |
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12,519 |
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Research and development |
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2,649 |
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2,635 |
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14,798 |
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15,154 |
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Operating income (loss) |
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(7,161 |
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773 |
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Other income (expense): |
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Interest income |
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104 |
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106 |
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Interest expense |
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(900 |
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(1,085 |
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Other |
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188 |
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(146 |
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