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 September 30, 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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LOUD TECHNOLOGIES INC.
(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) 892-6500 |
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(Registrant’s telephone number, including area code) |
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Mackie Designs Inc. |
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(Former name or former
address, if |
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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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19,608,036 |
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Class |
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Number of
Shares Outstanding |
LOUD TECHNOLOGIES INC.
FORM 10-Q
For the quarter ended September 30, 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
Item 1. Financial Statements
LOUD TECHNOLOGIES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
In thousands
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September 30, |
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December 31, |
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ASSETS |
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Current assets: |
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Cash |
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$ |
425 |
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$ |
3,062 |
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Accounts receivable, less allowance for doubtful accounts of $3,639 and $2,684, respectively |
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29,229 |
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31,225 |
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Income taxes receivable |
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176 |
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2,437 |
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Inventories |
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36,534 |
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50,165 |
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Prepaid expenses and other current assets |
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2,998 |
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6,269 |
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Deferred income taxes |
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1,376 |
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1,875 |
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Total current assets |
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70,738 |
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95,033 |
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Property, plant and equipment, net |
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18,073 |
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22,043 |
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Intangible assets, net |
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5,658 |
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5,675 |
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Other assets, net |
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1,066 |
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1,204 |
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Total assets |
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$ |
95,535 |
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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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$ |
26,670 |
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$ |
39,152 |
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Accounts payable |
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17,948 |
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22,235 |
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Accrued liabilities |
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13,735 |
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10,810 |
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Liabilities of unconsolidated affiliate |
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435 |
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— |
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Current portion of long-term debt and long-term debt callable under covenant provisions |
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14,052 |
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7,946 |
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Total current liabilities |
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72,840 |
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80,143 |
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Long-term debt, excluding current portion |
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10,705 |
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20,266 |
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Employee and other liabilities |
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4,871 |
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4,435 |
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Deferred income taxes |
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1,464 |
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1,875 |
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Total liabilities |
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89,880 |
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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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33,985 |
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29,345 |
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Accumulated deficit |
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(27,322 |
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(11,372 |
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Accumulated other comprehensive loss |
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(1,008 |
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(737 |
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Total shareholders’ equity |
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5,655 |
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17,236 |
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Total liabilities and shareholders’ equity |
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$ |
95,535 |
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$ |
123,955 |
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See accompanying Notes to Condensed Consolidated Financial Statements.
3
LOUD TECHNOLOGIES INC.
(Unaudited)
In thousands, except per share data
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Three Months Ended |
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Nine Months Ended |
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2003 |
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2002 |
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2003 |
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2002 |
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Net sales |
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$ |
40,457 |
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$ |
46,404 |
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$ |
124,405 |
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$ |
144,321 |
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Cost of sales |
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31,275 |
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32,987 |
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97,777 |
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99,720 |
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Gross profit |
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9,182 |
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13,417 |
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26,628 |
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44,601 |
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Operating expenses: |
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