UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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: August 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 |
For the transition period from: To:
Commission File Number: 0-23996
SCHMITT INDUSTRIES, INC.
(Exact name of registrant’s principal executive office)
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Oregon |
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93-1151989 |
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(Place of Incorporation) |
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(IRS Employer ID Number) |
2765 NW Nicolai Street, Portland, Oregon 97210
(Address of registrant’s principal executive office)
(503) 227-7908
(Registrant’s telephone number)
Indicate by check mark whether the registrant has (1) filed all reports required to be filed by Section 13 of 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
The number of shares of each class of common stock outstanding as of August 31, 2003
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Common stock, no par value |
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2,436,265 |
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SCHMITT INDUSTRIES, INC.
INDEX TO FORM 10-Q
2
Item 1. Financial Statements
SCHMITT INDUSTRIES,
INC.
CONSOLIDATED BALANCE SHEETS
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August 31, 2003 |
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May 31, 2003 |
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Unaudited |
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ASSETS |
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Current assets |
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Cash |
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$ |
296,782 |
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$ |
410,245 |
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Accounts receivable, net of allowance of $24,060 at August 31, 2003 and May 31, 2003 |
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1,346,513 |
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1,324,200 |
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Inventories |
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2,725,736 |
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2,725,931 |
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Prepaid expenses |
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153,159 |
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167,192 |
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Income taxes receivable |
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31,859 |
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32,659 |
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4,554,049 |
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4,660,227 |
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Property and equipment |
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Land |
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299,000 |
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299,000 |
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Buildings and improvements |
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1,207,328 |
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1,208,417 |
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Furniture, fixtures and equipment |
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964,328 |
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991,828 |
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Vehicles |
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93,887 |
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93,887 |
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2,564,543 |
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2,593,132 |
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Less accumulated depreciation and amortization |
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1,301,676 |
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1,307,100 |
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1,262,867 |
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1,286,032 |
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Other assets |
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Long-term investment |
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6,800 |
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6,800 |
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Other assets |
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305,229 |
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318,880 |
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312,029 |
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325,680 |
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TOTAL ASSETS |
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$ |
6,128,945 |
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$ |
6,271,939 |
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LIABILITIES & STOCKHOLDERS’ EQUITY |
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Current liabilities |
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Accounts payable |
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$ |
354,215 |
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$ |
355,329 |
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Accrued commissions |
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137,647 |
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148,953 |
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Accrued liabilities |
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69,776 |
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78,080 |
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Current portion of long-term debt |
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9,756 |
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20,031 |
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Total current liabilities |
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571,394 |
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602,393 |
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Long-term debt |
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2,670 |
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4,273 |
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Stockholders’ equity |
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Common stock, no par value, 20,000,000 shares authorized, 2,436,265 and 2,457,932 shares issued and outstanding at August 31, 2003 and May 31, 2003 respectively (see note 10) |
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7,314,983 |
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7,332,984 |
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Accumulated other comprehensive loss |
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(305,757 |
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(280,363 |
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Accumulated deficit |
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(1,454,345 |
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(1,387,348 |
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Total stockholders’ equity |
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5,554,881 |
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5,665,273 |
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
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$ |
6,128,945 |
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$ |
6,271,939 |
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The accompanying notes are an integral part of these financial statements
3
SCHMITT INDUSTRIES, INC.
FOR THE THREE MONTHS ENDED AUGUST 31, 2003 AND 2002
(UNAUDITED)
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Three Months Ended August 31, |
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2003 |
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2002 |
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Net sales |
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$ |
1,648,201 |
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$ |
2,001,191 |
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Cost of sales |
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764,572 |
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823,551 |
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Gross profit |
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883,629 |
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1,177,640 |
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Operating expenses: |
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General, administration and sales |
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963,244 |
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1,085,808 |
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Research and development |
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9,020 |
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80,677 |
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Total operating expenses |
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972,264 |
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1,166,485 |
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Operating income (loss) |
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(88,635 |
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11,155 |
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Other income |
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21,638 |
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57,160 |
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(Loss) before income tax expense |
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(66,997 |
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68,315 |
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Income tax expense |
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— |
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13,000 |
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Net (loss) |
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