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 March 31, 2004 |
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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
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CHANNELL COMMERCIAL CORPORATION |
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(Exact name of Registrant as specified in its charter) |
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DELAWARE |
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(State or other jurisdiction of incorporation or organization) |
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95-2453261 |
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(I.R.S. Employer Identification No.) |
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26040 Ynez Road, Temecula, California |
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(Address of principal executive offices) |
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92591 |
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(Zip Code) |
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(909) 719-2600 |
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(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 April 30, 2004.
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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Three
months ended |
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2004 |
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2003 |
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Net sales |
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$ |
17,720 |
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$ |
16,218 |
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Cost of goods sold |
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12,376 |
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11,736 |
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Gross profit |
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5,344 |
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4,482 |
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Operating expenses |
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Selling |
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2,603 |
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2,302 |
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General and administrative |
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2,088 |
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1,852 |
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Research and development |
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502 |
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395 |
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5,193 |
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4,549 |
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Income (loss) from operations |
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151 |
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(67 |
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Interest expense, net |
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61 |
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121 |
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Income (loss) before income taxes |
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90 |
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(188 |
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Income taxes |
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76 |
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100 |
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Net income (loss) |
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$ |
14 |
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(288 |
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Net income (loss) per share |
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Basic |
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$ |
0.00 |
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(0.03 |
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Diluted |
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$ |
0.00 |
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$ |
(0.03 |
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Net income (loss) |
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$ |
14 |
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(288 |
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Other comprehensive income, net of tax Foreign currency translation adjustments |
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49 |
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470 |
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Comprehensive net income |
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$ |
63 |
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$ |
182 |
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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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March 31, |
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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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$ |
9,535 |
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$ |
9,527 |
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Accounts receivable, net |
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9,136 |
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10,051 |
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Inventories |
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8,962 |
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8,855 |
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Deferred income taxes |
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953 |
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876 |
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Prepaid expenses and misc. receivables |
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1,230 |
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996 |
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Income taxes receivable |
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682 |
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102 |
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Total current assets |
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30,498 |
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30,407 |
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Property and equipment at cost, net |
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16,446 |
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17,164 |
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Deferred income taxes |
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4,978 |
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5,277 |
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Intangible assets, net |
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607 |
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613 |
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Other assets |
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529 |
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504 |
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$ |
53,058 |
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$ |
53,965 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities |
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Accounts payable |
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$ |
4,648 |
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$ |
5,103 |
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Short term debt (including current maturities of long term debt) |
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952 |
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952 |
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Current maturities of capital lease obligations |
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18 |
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57 |
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Accrued restructuring liability |
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2,265 |
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2,857 |
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Accrued expenses |
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4,609 |
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4,240 |
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Total current liabilities |
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12,492 |
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13,209 |
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Long term debt, less current maturities |
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2,592 |
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2,830 |
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Capital lease obligations, less current maturities |
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67 |
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67 |
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Deferred gain on sale leaseback transaction |
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498 |
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513 |
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Commitments and contingencies |
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— |
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— |
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Stockholders’ equity |
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Preferred stock, par value $.01 per share, authorized - 1,000 shares, none issued and outstanding |
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Common stock, par value $.01 per share, authorized - 19,000 shares; issued - 9,372 shares in December 31, 2003 and March 31, 2004; outstanding - 9,128 shares in December 31, 2003 and March 31, 2004 |
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94 |
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94 |
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Additional paid-in capital |
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28,664 |
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28,664 |
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Treasury stock - 244 shares in 2003 and 2004 |
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(1,871 |
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(1,871 |
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Retained earnings |
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10,484 |
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10,470 |
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Accumulated other comprehensive income (loss) - Foreign currency translation |
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38 |
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(11 |
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