UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
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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 |
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Commission File Number: 0-26524 |
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LOUD TECHNOLOGIES INC.
(Exact name of registrant as specified in its charter)
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Washington |
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91-1432133 |
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(State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer Identification No.) |
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16220 Wood-Red Road, N.E., Woodinville, Washington |
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98072 |
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(Address of principal executive offices) |
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(Zip Code) |
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(425) 892-6500 |
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(Registrant’s telephone number, including area code) |
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N/A |
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(Former name or former address, if |
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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
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
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Common Stock, no par value |
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19,624,703 |
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Class |
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Number of Shares Outstanding |
LOUD TECHNOLOGIES INC.
FORM 10-Q
For the quarter ended March 31, 2004
INDEX
PART I. |
FINANCIAL INFORMATION |
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Item 1. |
Financial Statements (Unaudited) |
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Condensed Consolidated Statements of Shareholders’ Equity (Deficit) |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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2
LOUD TECHNOLOGIES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
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March 31, |
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December
31, |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
231 |
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$ |
757 |
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Accounts receivable, net of allowance for doubtful accounts of $1,649 and $2,163, respectively |
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12,047 |
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13,683 |
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Income taxes receivable |
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193 |
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188 |
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Inventories, net |
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16,896 |
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18,930 |
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Prepaid expenses and other current assets |
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3,659 |
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2,280 |
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Total current assets |
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33,026 |
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35,838 |
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Property, plant and equipment, net |
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8,351 |
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8,381 |
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Intangible assets, net |
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5,446 |
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5,552 |
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Other assets, net |
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529 |
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651 |
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Total assets |
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$ |
47,352 |
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$ |
50,422 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) |
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Current liabilities: |
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Short-term borrowings |
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$ |
6,332 |
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$ |
7,868 |
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Accounts payable |
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9,008 |
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5,285 |
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Accrued liabilities |
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7,811 |
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9,142 |
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Income taxes payable |
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1,346 |
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1,288 |
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Current portion of long-term debt |
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500 |
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500 |
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Payable to former Italian subsidiary |
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9,173 |
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9,173 |
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Total current liabilities |
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34,170 |
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33,256 |
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Long-term debt, excluding current portion |
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16,343 |
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16,262 |
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Other liabilities |
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62 |
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72 |
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Total liabilities |
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50,575 |
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49,590 |
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Commitments and contingencies |
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Shareholders’ equity: |
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Preferred stock, no par value. Authorized 5,000,000 shares, no shares issued and outstanding |
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— |
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— |
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Common stock, no par value. Authorized 40,000,000 shares, issued and outstanding 19,608,036 shares at March 31, 2004 and December 31, 2003 |
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33,898 |
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33,999 |
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Accumulated deficit |
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(37,121 |
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(33,167 |
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Total shareholders’ equity (deficit) |
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(3,223 |
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832 |
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Total liabilities and shareholders’ equity (deficit) |
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$ |
47,352 |
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$ |
50,422 |
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See accompanying notes to condensed consolidated financial statements.
3
LOUD TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(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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$ |
25,681 |
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$ |
32,746 |
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Cost of sales |
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18,769 |
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26,005 |
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Gross profit |
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6,912 |
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6,741 |
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Operating expenses: |
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Selling, general and administrative |
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8,292 |
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9,811 |
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Research and development |
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1,972 |
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2,322 |
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Restructuring costs |
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— |
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696 |
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Total operating expenses |
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10,264 |
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12,829 |
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Operating loss |
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(3,352 |
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(6,088 |
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Other income (expense): |
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Interest income |
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— |
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15 |
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Interest expense |
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(761 |
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(518 |
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Other |
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164 |
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201 |
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Total other income (expense) |
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(597 |
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(302 |
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