UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 30, 2004
Commission file number 0-4479
THE OHIO ART COMPANY
(Exact name of registrant as specified in its charter)
|
Ohio |
|
34-4319140 |
|
(State of Incorporation) |
|
(I.R.S. Employer Identification No.) |
|
|
||
|
P.O. Box 111, Bryan, Ohio 43506 |
||
|
(Address of Principal Executive Offices) |
||
|
|
||
|
Registrant’s telephone number, including area code: (419) 636-3141 |
||
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 Act).
Yes o No ý
At May 31, 2004 there were 886,784 shares outstanding of the Company’s Common Stock, $1.00 par value.
PART I - FINANCIAL INFORMATION
Item 1. Financial statements
THE OHIO ART COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands, except per share amounts)
(unaudited)
|
|
|
Three Months Ended |
|
||||
|
|
|
Apr 30 |
|
Apr 30 |
|
||
|
Net sales |
|
$ |
4,514 |
|
$ |
6,933 |
|
|
Other income |
|
278 |
|
298 |
|
||
|
|
|
4,792 |
|
7,231 |
|
||
|
|
|
|
|
|
|
||
|
Costs and expenses: |
|
|
|
|
|
||
|
Cost of products sold |
|
3,886 |
|
5,212 |
|
||
|
Selling, administrative and general |
|
2,264 |
|
2,506 |
|
||
|
Interest |
|
17 |
|
49 |
|
||
|
|
|
6,167 |
|
7,767 |
|
||
|
|
|
|
|
|
|
||
|
Loss before income taxes |
|
(1,375 |
) |
(536 |
) |
||
|
|
|
|
|
|
|
||
|
Benefit from income taxes |
|
— |
|
— |
|
||
|
|
|
|
|
|
|
||
|
Net loss |
|
$ |
(1,375 |
) |
$ |
(536 |
) |
|
|
|
|
|
|
|
||
|
Net loss per share (Note 3) |
|
$ |
(1.57 |
) |
$ |
(0.61 |
) |
|
|
|
|
|
|
|
||
|
Average shares outstanding (Note 3) |
|
876 |
|
874 |
|
||
See notes to condensed consolidated financial statements.
2
THE OHIO ART COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except share amounts)
|
|
|
April 30 |
|
January 31 |
|
||
|
|
|
(unaudited) |
|
|
|
||
|
Assets |
|
|
|
|
|
||
|
Current assets: |
|
|
|
|
|
||
|
Cash |
|
$ |
1,293 |
|
$ |
1,189 |
|
|
Accounts receivable less allowance (April - $655; January - $625) |
|
2,940 |
|
3,670 |
|
||
|
Inventories (Note 2) |
|
|
|
|
|
||
|
Finished products |
|
1,715 |
|
2,197 |
|
||
|
Products in process |
|
75 |
|
75 |
|
||
|
Raw materials |
|
1,192 |
|
1,188 |
|
||
|
|
|
2,982 |
|
3,460 |
|
||
|
Deferred income taxes |
|
576 |
|
576 |
|
||
|
Prepaid expenses |
|
190 |
|
243 |
|
||
|
|
|
|
|
|
|
||
|
Total current assets |
|
7,981 |
|
9,138 |
|
||
|
|
|
|
|
|
|
||
|
Property, plant and equipment, net |
|
6,097 |
|
6,427 |
|
||
|
Other assets |
|
497 |
|
494 |
|
||
|
|
|
|
|
|
|
||
|
Total assets |
|
$ |
14,575 |
|
$ |
16,059 |
|
|
|
|
|
|
|
|
||
|
Liabilities and stockholders’ equity |
|
|
|
|
|
||
|
Current liabilities: |
|
|
|
|
|
||
|
Accounts payable |
|
$ |
1,641 |
|
$ |
1,754 |
|
|
Other current liabilities |
|
1,240 |
|
1,086 |
|
||
|
Deferred federal income tax |
|
154 |
|
154 |
|
||
|
Long-term debt due within one year |
|
505 |
|
498 |
|
||
|
|
|
|
|
|
|
||
|
Total current liabilities |
|
3,540 |
|
3,492 |
|
||
|
|
|
|
|
|
|
||
|
Long-term obligations, less current maturities (Note 5) (Note 7) |
|
3,805 |
|
3,926 |
|
||
|
|
|
|
|
|
|
||
|
Stockholders’ equity (Note 3) |
|
|
|
|
|
||
|
Common stock, par value $1.00 per share: |
|
|
|
|
|
||
|
Authorized: 1,935,552 shares |
|
|
|
|
|
||
|
Outstanding: 886,784 for both periods (excluding treasury shares of 72,976) |
|
887 |
|
887 |
|
||
|
Additional paid-in capital |
|
197 |
|
197 |
|
||
|
Retained earnings |
|
6,409 |
|
7,820 |
|
||
|
Reduction for ESOP loan guarantee |
|
(263 |
) |
(263 |
) |
||
|
|
|
|
|
|
|
||
|
Total stockholders’ equity |
|
7,230 |
|
8,641 |
|
||
|
|
|
|
|
|
|
||
|
Total liabilities and stockholders’ equity |
|
$ |
14,575 |
|
$ |
16,059 |
|
See notes to condensed consolidated financial statements.
3
THE OHIO ART COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(amounts in thousands)
(unaudited)
|
|
|
Three Months Ended |
|
||||
|
|
|
Apr 30 |
|
Apr 30 |
|
||
|
|
|
|
|
|
|
||
|
Cash flows from operating activities |
|
|
|
|
|
||
|
Net loss |
|
$ |
(1,375 |
) |
$ |
(536 |
) |
|
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
|
|
||
|
Provision for depreciation and amortization |
|
400 |
|
408 |
|
||
|
Changes in assets and liabilities |
|
1,354 |
|
210 |
|
||
|
|
|
|
|
|
|
||
|
Net cash provided by operating activities |
|
379 |
|
82 |
|
||
|
|
|
|
|
|
|
||
|
Cash flows from investing activities |
|
|
|
|
|
||
|
Purchases of property, plant, and equipment, less net book value of disposals |
|
(70 |
) |
(64 |
) |
||
|
Changes in net cash value of life insurance |
|
(6 |
) |
— |
|
||
|
|
|
|
|
|
|
||
|
Net cash used in investing activities |
|
(76 |
) |
(64 |
) |
||
|
|
|
|
|
|
|
||
|
Cash flows from financing activities |
< | ||||||