UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER
SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2003
Commission File Number 0-15582
MINUTEMAN INTERNATIONAL, INC.
(Exact name of registrant, as specified in its charter)
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Illinois |
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36-2262931 |
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(State or other
jurisdiction of |
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(I.R.S. Employer Identification No.) |
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111 South Rohlwing Road, Addison, Illinois |
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60101 |
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(Address of principal executive offices) |
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(Zip Code) |
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Registrant’s telephone number, including area code |
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(630) 627-6900 |
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
The number of shares of common stock, no par value, of the registrant outstanding as of October 31, 2003 was 3,580,173.
MINUTEMAN INTERNATIONAL,
INC.
AND SUBSIDIARIES
FORM 10-Q
For the Quarter Ended September 30, 2003
TABLE OF CONTENTS
2
PART I. FINANCIAL INFORMATION
ITEM 1. CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
MINUTEMAN INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
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Unaudited |
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Audited |
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ASSETS |
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Current assets: |
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Cash & cash equivalents |
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$ |
1,146,000 |
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$ |
1,307,000 |
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Short-term investments |
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4,400,000 |
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4,900,000 |
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Accounts receivable, less allowances of $1,453,000 in 2003 and $987,000 in 2002 |
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19,070,000 |
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15,165,000 |
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Due from affiliates |
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87,000 |
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291,000 |
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Inventories |
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19,670,000 |
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18,856,000 |
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Prepaid expenses |
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351,000 |
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467,000 |
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Refundable income taxes |
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— |
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456,000 |
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Deferred income taxes |
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870,000 |
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672,000 |
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Total current assets |
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45,594,000 |
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42,114,000 |
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Property, plant and equipment, at cost |
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25,184,000 |
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24,716,000 |
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Accumulated depreciation |
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(17,869,000 |
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(16,831,000 |
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Net property, plant and equipment |
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7,315,000 |
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7,885,000 |
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Intangible assets, net of amortization of $1,066,000 in 2003 and 2002 |
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5,201,000 |
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5,201,000 |
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Total assets |
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$ |
58,110,000 |
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$ |
55,200,000 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current liabilities: |
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Current maturities of long-term debt |
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$ |
1,500,000 |
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$ |
1,500,000 |
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Accounts payable |
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3,926,000 |
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2,037,000 |
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Accrued expenses |
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3,543,000 |
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3,107,000 |
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Income taxes |
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495,000 |
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— |
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Total current liabilities |
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9,464,000 |
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6,644,000 |
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Long-term debt, less current maturities |
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6,750,000 |
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7,500,000 |
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Derivative financial instrument |
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634,000 |
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684,000 |
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Deferred income taxes |
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451,000 |
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256,000 |
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Total liabilities |
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17,299,000 |
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15,084,000 |
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Commitments and contingencies (Note 8) |
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Shareholders’ equity: |
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Common stock, no par value; 10,000,000 shares authorized; 3,580,173 and 3,574,279 shares issued and outstanding at September 30, 2003 and December 31, 2002, respectively |
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6,596,000 |
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6,596,000 |
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Retained earnings |
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34,416,000 |
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33,868,000 |
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Unearned restricted stock |
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(29,000 |
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(83,000 |
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Accumulated other comprehensive loss |
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(172,000 |
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(265,000 |
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Total shareholders’ equity |
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40,811,000 |
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40,116,000 |
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Total liabilities and shareholders’ equity |
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$ |
58,110,000 |
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$ |
55,200,000 |
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See accompanying notes to condensed consolidated financial statements.
3
MINUTEMAN
INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS
OF INCOME
(Unaudited)
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Three Months Ended |
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Nine Months Ended |
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Sept 30, 2003 |
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Sept 30, 2002 |
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Sept 30, 2003 |
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Sept 30, 2002 |
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Net sales |
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$ |
18,228,000 |
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$ |
17,356,000 |
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$ |
56,120,000 |
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$ |
56,535,000 |
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Cost of sales |
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12,809,000 |
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12,218,000 |
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39,271,000 |
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39,782,000 |
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Gross profit |
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5,419,000 |
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5,138,000 |
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16,849,000 |
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16,753,000 |
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Operating expenses: |
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Selling |
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3,336,000 |
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3,287,000 |
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10,315,000 |
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10,122,000 |
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General and administrative |
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1,360,000 |
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1,103,000 |
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3,707,000 |
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3,444,000 |
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Total operating expenses |
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4,696,000 |
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4,390,000 |
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14,022,000 |
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13,566,000 |
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Income from operations |
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723,000 |
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748,000 |
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2,827,000 |
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3,187,000 |
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Other income (expense): |
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Interest income |
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— |
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16,000 |
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9,000 |
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