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 |
Commission File No. 0-28582
CHANNELL COMMERCIAL CORPORATION
(Exact name of Registrant as specified in its charter)
DELAWARE
(State or other jurisdiction of incorporation or organization)
95-2453261
(I.R.S. Employer Identification No.)
26040 Ynez Road, Temecula, California
(Address of principal executive offices)
92591
(Zip Code)
(909) 719-2600
(Registrant’s telephone number, including area code)
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
9,127,661 shares of common stock of the Registrant were outstanding at November 4, 2003.
PART 1 – FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CHANNELL COMMERCIAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(amounts in thousands, except per share data)
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Nine months ended |
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Three 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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$ |
55,937 |
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$ |
65,065 |
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$ |
19,434 |
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$ |
19,401 |
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Cost of goods sold |
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39,491 |
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43,160 |
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13,919 |
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13,966 |
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Gross profit |
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16,446 |
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21,905 |
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5,515 |
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5,435 |
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Operating expenses |
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Selling |
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6,994 |
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6,973 |
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2,347 |
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2,012 |
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General and administrative |
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5,776 |
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8,799 |
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2,048 |
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2,144 |
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Research and development |
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1,193 |
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1,215 |
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408 |
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377 |
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13,963 |
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16,987 |
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4,803 |
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4,533 |
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Income from operations |
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2,483 |
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4,918 |
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712 |
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902 |
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Interest expense, net |
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438 |
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1,812 |
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178 |
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491 |
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Income before income taxes |
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2,045 |
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3,106 |
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534 |
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411 |
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Income taxes |
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730 |
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1,640 |
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(1 |
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261 |
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Net income |
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$ |
1,315 |
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$ |
1,466 |
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$ |
535 |
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$ |
150 |
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Net income per share |
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Basic |
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$ |
0.14 |
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$ |
0.16 |
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$ |
0.06 |
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$ |
0.02 |
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Diluted |
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$ |
0.14 |
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$ |
0.16 |
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$ |
0.06 |
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$ |
0.02 |
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Net income |
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$ |
1,315 |
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$ |
1,466 |
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$ |
535 |
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$ |
150 |
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Other comprehensive
income, net of tax |
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1,281 |
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635 |
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79 |
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20 |
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Comprehensive net income |
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$ |
2,596 |
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$ |
2,101 |
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$ |
614 |
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$ |
170 |
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The accompanying notes are an integral part of these financial statements.
1
CHANNELL COMMERCIAL CORPORATION
CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
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September 30, |
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December 31, |
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(Unaudited) |
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ASSETS |
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Current assets |
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Cash and cash equivalents |
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$ |
7,285 |
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$ |
3,162 |
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Accounts receivable, net |
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10,174 |
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10,156 |
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Inventories |
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8,959 |
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7,757 |
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Deferred income taxes |
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1,037 |
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1,037 |
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Prepaid expenses and misc. receivables |
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1,478 |
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1,090 |
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Income taxes receivable |
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248 |
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247 |
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Total current assets |
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29,181 |
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23,449 |
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Property and equipment at cost, net |
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19,271 |
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25,431 |
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