UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
NORTECH SYSTEMS INCORPORATED
Commission file number 0-13257
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State of Incorporation: Minnesota |
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IRS Employer Identification No. 41-1681094 |
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Executive Offices: 1120 Wayzata Blvd E., Suite 201, Wayzata, MN 55391 |
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Telephone number: (952) 345-2277 |
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 of 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 if disclosure of delinquent filers pursuant to Item 405 of regulation S-K is not contained herein and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ý
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act) Yes o No ý.
Number of shares of $.01 par value common stock outstanding at October 22, 2003: 2,505,487
(The remainder of this page was intentionally left blank.)
TABLE OF CONTENTS
2
NORTECH SYSTEMS INCORPORATED AND SUBSIDIARY
SEPTEMBER 30, 2003 AND DECEMBER 31, 2002
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SEPTEMBER 30 |
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DECEMBER 31 |
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(UNAUDITED) |
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(AUDITED) |
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ASSETS |
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Current Assets |
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Cash and Cash Equivalents |
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$ |
877,900 |
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$ |
448,751 |
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Accounts Receivable, Less Allowance for Uncollectible Accounts $292,149 and $488,451 Respectively |
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9,366,926 |
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7,616,093 |
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Inventories: |
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Finished Goods |
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2,295,537 |
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2,172,379 |
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Work In Process |
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1,407,547 |
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1,859,000 |
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Raw Materials |
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8,961,439 |
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8,288,938 |
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Total Inventories |
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12,664,523 |
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12,320,317 |
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Prepaid Expenses |
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501,071 |
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369,252 |
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Income Taxes Receivable |
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113,200 |
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483,971 |
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Deferred Tax Assets |
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1,025,000 |
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959,000 |
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Total Current Assets |
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24,548,620 |
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22,197,384 |
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Property and Equipment |
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Land |
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151,800 |
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151,800 |
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Building and Leasehold Improvements |
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4,808,163 |
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4,671,905 |
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Manufacturing Equipment |
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6,251,971 |
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5,466,567 |
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Office and Other Equipment |
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2,801,311 |
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2,743,707 |
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Total Property and Equipment |
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14,013,245 |
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13,033,979 |
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Accumulated Depreciation |
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(8,009,315 |
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(7,084,565 |
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Net Property and Equipment |
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6,003,930 |
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5,949,414 |
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Other Assets |
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Deposits |
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22,058 |
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11,012 |
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Non-Compete, Net of Accumulated Amortization |
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1,050,045 |
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1,335,584 |
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Goodwill |
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76,006 |
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76,006 |
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Deferred Tax Assets |
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119,000 |
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33,000 |
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Total Other Assets |
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1,267,109 |
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1,455,602 |
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Total Assets |
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$ |
31,819,659 |
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$ |
29,602,400 |
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See accompanying Notes to Consolidated Financial Statements
3
NORTECH SYSTEMS INCORPORATED AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2003 AND DECEMBER 31, 2002
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SEPTEMBER 30 |
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DECEMBER 31 |
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(UNAUDITED) |
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(AUDITED) |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current Liabilities |
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Current Maturities of Notes and Capital Lease Payable |
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$ |
1,324,157 |
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$ |
1,642,179 |
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Checks Written in Excess of Cash |
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950,000 |
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300,000 |
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Accounts Payable |
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3,599,966 |
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3,298,474 |
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Accrued Payroll and Commissions |
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1,529,760 |
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2,119,566 |
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Accrued Health and Dental Claims |
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268,623 |
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277,864 |
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Other Accrued Liabilities |
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549,496 |
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243,243 |
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Net Current Liabilities from Discontinued Operations |
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50,000 |
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50,000 |
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Total Current Liabilities |
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8,272,002 |
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7,931,326 |
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Long-Term Liabilities |
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Notes and Capital Lease Payable (Net of Current Maturities) |
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9,086,922 |
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8,580,944 |
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Total Liabilities |
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17,358,924 |
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16,512,270 |
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Shareholders’ Equity |
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Preferred Stock, $1 par value; 1,000,000 Shares Authorized; 250,000 Shares Issued and Outstanding |
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250,000 |
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250,000 |
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Common Stock - $0.01 par value; 9,000,000 Shares Authorized: 2,505,487 and 2,441,946 Shares Issued and Outstanding at September 30, 2003 and December 31, 2002, Respectively |
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25,055 |
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