UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
|
(Mark One) |
|
|
ý |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|
|
|
|
For the quarterly period ended June 30, 2003 |
|
|
|
|
|
OR |
|
|
|
|
|
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 0-5228
STRATEGIC DISTRIBUTION, INC.
(Exact name of registrant as specified in its charter)
|
Delaware |
|
22-1849240 |
|
(State or other jurisdiction of |
|
(I. R. S. Employer |
|
|
|
|
|
3220 Tillman Drive, Suite 200, Bensalem, PA |
|
19020 |
|
(Address of principal executive offices) |
|
(Zip Code) |
|
|
|
|
|
215-633-1900 |
||
|
(Registrant’s telephone number, including area code) |
||
|
|
||
|
|
||
|
(Former name, former address and former fiscal year, if changed since last report) |
||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 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 registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý
Number of Common Shares outstanding at August 7, 2003: 2,950,882
TABLE OF CONTENTS
Part I - Financial Information
STRATEGIC DISTRIBUTION, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, except share data)
|
|
|
June 30, |
|
December
31, |
|
||
|
|
|
(unaudited) |
|
|
|
||
|
Assets |
|
|
|
|
|
||
|
Current assets: |
|
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
43,957 |
|
$ |
43,622 |
|
|
Accounts receivable, net |
|
20,589 |
|
22,298 |
|
||
|
Inventories |
|
16,763 |
|
20,321 |
|
||
|
Prepaid expenses and other current assets |
|
542 |
|
384 |
|
||
|
|
|
|
|
|
|
||
|
Total current assets |
|
81,851 |
|
86,625 |
|
||
|
|
|
|
|
|
|
||
|
Office fixtures and equipment, net |
|
4,305 |
|
5,018 |
|
||
|
Deferred income taxes |
|
697 |
|
827 |
|
||
|
Other assets |
|
53 |
|
400 |
|
||
|
|
|
|
|
|
|
||
|
Total assets |
|
$ |
86,906 |
|
$ |
92,870 |
|
|
|
|
|
|
|
|
||
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
||
|
Current liabilities: |
|
|
|
|
|
||
|
Accounts payable and accrued expenses |
|
$ |
20,332 |
|
$ |
26,571 |
|
|
|
|
|
|
|
|
||
|
Total current liabilities |
|
20,332 |
|
26,571 |
|
||
|
|
|
|
|
|
|
||
|
Stockholders’ equity: |
|
|
|
|
|
||
|
Preferred stock, par value $.10 per share. |
|
— |
|
— |
|
||
|
Common stock, par value $.10 per share. |
|
309 |
|
314 |
|
||
|
Additional paid-in capital |
|
96,699 |
|
98,008 |
|
||
|
Accumulated deficit |
|
(28,730 |
) |
(29,157 |
) |
||
|
Notes receivable from shareholders |
|
— |
|
(1,303 |
) |
||
|
Treasury stock, at cost (103,000 and 91,900 shares) |
|
(1,704 |
) |
(1,563 |
) |
||
|
|
|
|
|
|
|
||
|
Total stockholders’ equity |
|
66,574 |
|
66,299 |
|
||
|
|
|
|
|
|
|
||
|
Total liabilities and stockholders’ equity |
|
$ |
86,906 |
|
$ |
92,870 |
|
See accompanying notes to consolidated financial statements.
1
STRATEGIC DISTRIBUTION, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(unaudited)
(in thousands, except share data)
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
||||||||
|
|
|
2003 |
|
2002 |
|
2003 |
|
2002 |
|
||||
|
Revenues |
|
$ |
37,390 |
|
$ |
92,582 |
|
$ |
78,086 |
|
$ |
164,974 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Cost and expenses: |
|
|
|
|
|
|
|
|
|
||||
|
Cost of materials |
|
29,314 |
|
78,182 |
|
61,427 |
|
136,630 |
|
||||
|
Operating wages and benefits |
|
3,233 |
|
5,197 |
|
6,631 |
|
10,902 |
|
||||
|
Other operating expenses |
|
1,014 |
|
1,845 |
|
2,029 |
|
3,844 |
|
||||
|
Selling, general and administrative expenses |
|
3,535 |
|
5,270 |
|
7,568 |
|
11,118 |
|
||||
|
Severance and asset impairment expenses |
|
— |
|
4,500 |
|
— |
|
4,500 |
|
||||
|
Total costs and expenses |
|
37,096 |
|
94,994 |
|
77,655 |
|
166,994 |
|
||||
|
Operating income (loss) |
|
294 |
|
(2,412 |
) |
431 |
|
(2,020 |
) |
||||
|
Interest income |
|
143 |
|
100 |
|
286 |
|
116 |
|
||||
|
Income (loss) before income taxes and |
|
437 |
|
(2,312 |
) |
717 |
|
(1,904 |
) |
||||
|
Income tax benefit (expense) |
|
(65 |
) |
64 |
|
(290 |
) |
(75 |
) |
||||
|
Income (loss) from operations before |
|
372 |
|
(2,248 |
) |
427 |
|
(1,979 |
) |
||||
|
Cumulative effect of accounting change |
|
— |
|
— |
|
— |
|
(1,939 |
) |
||||
|
Net income (loss) |
|
$ |
372 |
|
$ |
(2,248 |
) |
$ |
427 |
|
$ |
(3,918 |
) |
|
|
|
|
|
|
|||||||||