UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended July 31, 2003
Commission file number 0-4479
THE OHIO ART COMPANY
(Exact name of registrant as specified in its charter)
|
Ohio |
|
34-4319140 |
|
(State of Incorporation) |
|
(I.R.S. Employer Identification No.) |
|
|
|
|
|
P.O. Box 111, Bryan, Ohio 43506 |
||
|
(Address of Principal Executive Offices) |
||
|
|
||
|
Registrant’s telephone number, including area code: (419) 636-3141 |
||
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
At August 31, 2003 there were 886,784 shares outstanding of the Company’s Common Stock, $1.00 par value.
PART I - FINANCIAL INFORMATION
Item 1. Financial statements
THE OHIO ART
COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(amounts in thousands, except per share amounts)
(unaudited)
|
|
|
Three Months Ended |
|
Six Months Ended |
|
||||||||
|
|
|
July 31 |
|
July 31 |
|
July 31 |
|
July 31 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net sales |
|
$ |
6,237 |
|
$ |
10,406 |
|
$ |
13,169 |
|
$ |
16,521 |
|
|
Other income |
|
128 |
|
326 |
|
427 |
|
603 |
|
||||
|
|
|
6,365 |
|
10,732 |
|
13,596 |
|
17,124 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
||||
|
Cost of products sold |
|
4,511 |
|
6,923 |
|
9,723 |
|
11,931 |
|
||||
|
Selling, administrative and general |
|
2,458 |
|
2,932 |
|
4,964 |
|
5,208 |
|
||||
|
Interest |
|
30 |
|
95 |
|
79 |
|
176 |
|
||||
|
|
|
6,999 |
|
9,950 |
|
14,766 |
|
17,315 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Income (loss) before income taxes |
|
(634 |
) |
782 |
|
(1,170 |
) |
(191 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Provision for (Benefit from) income taxes |
|
(340 |
) |
279 |
|
(340 |
) |
(52 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net income (loss) |
|
$ |
(294 |
) |
$ |
503 |
|
$ |
(830 |
) |
$ |
(139 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net income(loss) per share(Note 3) |
|
$ |
(.34 |
) |
$ |
.58 |
|
$ |
(.95 |
) |
$ |
(.16 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Average shares outstanding (Note 3) |
|
874 |
|
873 |
|
874 |
|
873 |
|
||||
See notes to condensed consolidated financial statements.
2
THE OHIO ART
COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(amounts in thousands, except share amounts)
|
|
|
July 31 |
|
January 31 |
|
||
|
|
|
(unaudited) |
|
|
|
||
|
Assets |
|
|
|
|
|
||
|
Current assets |
|
|
|
|
|
||
|
Cash |
|
$ |
1,944 |
|
$ |
2,184 |
|
|
Marketable Securities |
|
|
|
1,506 |
|
||
|
Accounts receivable less allowance (July - $462; January - $520) |
|
2,917 |
|
4,222 |
|
||
|
Inventories (Note 2) |
|
|
|
|
|
||
|
Finished products |
|
3,261 |
|
2,825 |
|
||
|
Products in process |
|
58 |
|
58 |
|
||
|
Raw materials |
|
1,241 |
|
1,026 |
|
||
|
|
|
4,560 |
|
3,909 |
|
||
|
Deferred income taxes |
|
926 |
|
586 |
|
||
|
Prepaid expenses |
|
66 |
|
295 |
|
||
|
Total current assets |
|
10,413 |
|
12,702 |
|
||
|
|
|
|
|
|
|
||
|
Property, plant and equipment, net |
|
7,085 |
|
7,355 |
|
||
|
Other assets (Note 6) |
|
367 |
|
399 |
|
||
|
Total assets |
|
$ |
17,865 |
|
$ |
20,456 |
|
|
Liabilities and stockholders’ equity |
|
|
|
|
|
||
|
Current liabilities: |
|
|
|
|
|
||
|
Accounts payable |
|
$ |
2,338 |
|
$ |
2,731 |
|
|
Other current liabilities |
|
1,866 |
|
1,904 |
|
||
|
Long-term debt due within one year (Note 5) |
|
870 |
|
2,249 |
|
||
|
Total current liabilities |
|
5,074 |
|
6,884 |
|
||
|
|
|
|
|
|
|
||
|
Long-term obligations, less current maturities (Note 5) |
|
4,683 |
|
4,528 |
|
||
|
Deferred federal income tax |
|
267 |
|
267 |
|
||
|
|
|
|
|
|
|
||
|
Stockholders’ equity (Note 3) |
|
|
|
|
|
||
|
Common
stock, par value $1.00 per share: |
|
887 |
|
887 |
|
||
|
Additional paid-in capital |
|
197 |
|
197 |
|
||
|
Accumulated other comprehensive loss, net of tax |
|
(1,531 |
) |
(1,531 |
) |
||
|
Retained earnings |
|
8,571 |
|
9,507 |
|
||
|
Reduction for ESOP loan |
|
(283 |
) |
(283 |
) |
||
|
Total stockholders’ equity |
|
7,841 |
|
8,777 |
|
||
|
Total liabilities and stockholders’ equity |
|
$ |
17,865 |
|
$ |
20,456 |
|
See notes to condensed consolidated financial statements.
3
THE OHIO ART
COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(amounts in thousands)
(unaudited)
|
|
|
Six Months Ended |
|
||||
|
|
|
July 31 |
|
July 31 |
|
||
|
Cash flows from operating activities |
|
|
|
|
|
||
|
Net loss |
|
$ |
(830 |
) |
$ |
(139 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
|
||