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 27, 2003 |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
COMMISSION FILE NUMBER 001-11911
STEINWAY MUSICAL INSTRUMENTS, INC.
(Exact name of registrant as specified in its charter)
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DELAWARE |
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35-1910745 |
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(State or Other
Jurisdiction of |
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(I.R.S. Employer |
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800
South Street, Suite 305 |
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02453 |
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(Address of Principal Executive Offices) |
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(Zip Code) |
Registrant’s telephone number including area code: (781) 894-9770
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 during 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 ý No o
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Number of shares of Common Stock issued and outstanding as of October 31, 2003: |
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Class A |
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477,953 |
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Ordinary |
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8,463,494 |
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Total |
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8,941,447 |
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STEINWAY MUSICAL INSTRUMENTS, INC. AND SUBSIDIARIES
FORM 10-Q
INDEX
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CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
STEINWAY MUSICAL INSTRUMENTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In Thousands Except Share and Per Share Amounts)
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Three Months Ended |
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Nine Months Ended |
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September 28, |
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September 27, |
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September 28, |
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September 27, |
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Net sales |
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$ |
75,320 |
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$ |
82,546 |
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$ |
241,728 |
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$ |
243,090 |
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Cost of sales |
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54,019 |
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59,655 |
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170,679 |
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176,654 |
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Gross Profit |
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21,301 |
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22,891 |
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71,049 |
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66,436 |
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Operating expenses: |
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Sales and marketing |
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9,497 |
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9,383 |
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30,127 |
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31,340 |
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General and administrative |
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5,286 |
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5,480 |
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16,215 |
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16,969 |
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Amortization |
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288 |
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288 |
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866 |
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865 |
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Other operating expense |
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204 |
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110 |
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611 |
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418 |
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Facility rationalization charges |
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— |
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2,075 |
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— |
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2,075 |
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Total operating expenses |
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15,275 |
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17,336 |
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47,819 |
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51,667 |
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Income from operations |
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6,026 |
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5,555 |
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23,230 |
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14,769 |
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Interest expense, net |
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3,555 |
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3,189 |
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10,345 |
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9,168 |
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Other income, net |
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(390 |
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(699 |
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(1,933 |
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(2,032 |
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Income before income taxes |
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2,861 |
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3,065 |
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14,818 |
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7,633 |
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Provision for income taxes |
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670 |
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1,227 |
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4,860 |
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2,952 |
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Net income |
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$ |
2,191 |
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$ |
1,838 |
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$ |
9,958 |
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$ |
4,681 |
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Earnings per share: |
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Basic and Diluted |
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$ |
0.25 |
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$ |
0.21 |
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$ |
1.12 |
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$ |
0.53 |
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Weighted average shares: |
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Basic |
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8,894,580 |
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8,930,613 |
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8,867,595 |
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8,914,363 |
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Diluted |
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8,894,620 |
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8,931,709 |
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8,892,453 |
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8,914,712 |
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See notes to condensed consolidated financial statements.
3
STEINWAY MUSICAL INSTRUMENTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
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December 31, |
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September 27, |
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ASSETS: |
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Current assets: |
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Cash |
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$ |
19,099 |
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$ |
18,713 |
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Accounts, notes and leases receivable, net of allowance for bad debts of $11,389 and $10,831 in 2002 and 2003, respectively |
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77,421 |
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94,638 |
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Inventories |
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163,090 |
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161,182 |
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Prepaid expenses and other current assets |
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5,227 |
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4,578 |
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Deferred tax assets |
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7,012 |
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7,690 |
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Total current assets |
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271,849 |
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286,801 |
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Property, plant and equipment, net of accumulated depreciation of $55,151 and $62,733 in 2002 and 2003, respectively |
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