SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
ý Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For Quarterly Period Ended May 31, 2004
Commission File Number 0-13394
VIDEO DISPLAY CORPORATION
(Exact name of registrant as specified on its charter)
|
GEORGIA |
|
58-1217564 |
|
(State or other jurisdiction of |
|
(I.R.S.Employer |
|
|
|
|
|
1868 TUCKER INDUSTRIAL DRIVE, TUCKER, GEORGIA 30084 |
||
|
(Address of principal executive offices and zip code) |
||
|
|
||
|
770-938-2080 |
||
|
(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
Shares outstanding of each of the registrant’s classes of common stock at May 31, 2004:
|
Class |
|
Number of Shares |
|
Common Stock, No Par Value |
|
4,826,000 |
Video Display Corporation and Subsidiaries
Index
|
PART I. |
FINANCIAL INFORMATION |
|
|
|
|
|
|
|
Item 1. Financial Statements |
|
|
|
|
|
|
|
Consolidated Balance Sheets – |
|
|
|
|
|
|
|
Consolidated Statements of Income - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Cash Flows – |
|
|
|
|
|
|
|
Notes to Consolidated Financial
Statements - |
|
|
|
|
|
|
|
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations |
|
|
|
|
|
|
|
Item 3. Quantitative and Qualitative Disclosure About Market Risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PART II. |
OTHER INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT 31.1 302 CERTIFICATION OF CEO |
|
|
|
EXHIBIT 31.2 302 CERTIFICATION OF CFO |
|
|
|
EXHIBIT 32.1 906 CERTFICATION OF CEO |
|
|
|
EXHIBIT 32.2 906 CERTFICATION OF CFO |
|
|
2
Video Display Corporation and Subsidiaries
|
|
|
May 31, |
|
February
29, |
|
||
|
|
|
(unaudited) |
|
(Note A) |
|
||
|
Assets |
|
|
|
|
|
||
|
Current Assets |
|
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
2,748,000 |
|
$ |
3,021,000 |
|
|
Accounts receivable, less allowance for possible losses of $280,000 and $251,000 |
|
10,399,000 |
|
10,910,000 |
|
||
|
Inventories (Note D) |
|
28,044,000 |
|
26,275,000 |
|
||
|
Deferred income taxes |
|
2,299,000 |
|
2,299,000 |
|
||
|
Prepaid expenses and other |
|
1,073,000 |
|
1,639,000 |
|
||
|
Total current assets |
|
44,563,000 |
|
44,144,000 |
|
||
|
|
|
|
|
|
|
||
|
Property, plant and equipment: |
|
|
|
|
|
||
|
Land |
|
540,000 |
|
540,000 |
|
||
|
Buildings |
|
7,047,000 |
|
7,016,000 |
|
||
|
Machinery and equipment |
|
18,660,000 |
|
18,564,000 |
|
||
|
|
|
26,247,000 |
|
26,120,000 |
|
||
|
Accumulated depreciation and amortization |
|
(18,624,000 |
) |
(18,384,000 |
) |
||
|
Net property, plant, and equipment |
|
7,623,000 |
|
7,736,000 |
|
||
|
|
|
|
|
|
|
||
|
Goodwill |
|
1,318,000 |
|
1,227,000 |
|
||
|
Other assets |
|
1,505,000 |
|
1,444,000 |
|
||
|
|
|
|
|
|
|
||
|
Total assets |
|
$ |
55,009,000 |
|
$ |
54,551,000 |
|
The accompanying notes are an integral part of these statements.
3
|
|
|
May 31, |
|
February
29, |
|
||
|
|
|
(unaudited) |
|
(Note A) |
|
||
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
||
|
Current liabilities |
|
|
|
|
|
||
|
Accounts payable |
|
$ |
4,602,000 |
|
$ |
4,103,000 |
|
|
Accrued liabilities |
|
3,442,000 |
|
3,506,000 |
|
||
|
Lines of credit (Note F) |
|
2,610,000 |
|
2,610,000 |
|
||
|
Notes payable to shareholders |
|
17,000 |
|
19,000 |
|
||
|
Current maturities of long-term debt (Note E) |
|
1,871,000 |
|
1,959,000 |
|
||
|
Total current liabilities |
|
12,542,000 |
|
12,197,000 |
|
||
|
|
|
|
|
|
|
||
|
Lines of credit (Note F) |
|
8,813,000 |
|
6,199,000 |
|
||
|
Long-term debt, less current maturities (Note E) |
|
1,212,000 |
|
2,018,000 |
|
||
|
Notes payable to shareholders, less current maturities |
|
5,050,000 |
|
8,272,000 |
|
||
|
Deferred income taxes |
|
664,000 |
|
664,000 |
|
||
|
Total liabilities |
|
28,281,000 |
|
29,350,000 |
|
||
|
|
|
|
|
|
|
||
|
Minority Interests |
|
123,000 |
|
123,000 |
|
||
|
|
|
|
|
|
|
||
|
Commitments |
|
— |
|
— |
|
||
|
|
|
|
|
|
|
||
|
Shareholders’ Equity(Note C and H) |
|
|
|
|
|
||
|
Preferred stock, no par value – 2,000,000 shares authorized; none issued and outstanding |
|
— |
|
— |
|
||
|
Common stock, no par value – 10,000,000 shares authorized; 4,826,000 and 4,792,000 issued and outstanding |
|
6,723,000 |
|
6,318,000 |
|
||
|
Additional paid in capital |
|
92,000 |
|
92,000 |
|
||
|
Retained earnings |
|
19,803,000 |
|
18,688,000 |
|
||
|
Accumulated other comprehensive loss |
|
(13,000 |
) |
(20,000 |
) |
||
|
Total shareholders’ equity |
|
26,605,000 |
|
25,078,000 |
|
||
|
Total liabilities and shareholders’ equity |
|
$ |
55,009,000 |
|
$ |
54,551,000 |
|
The accompanying notes are an integral part of these statements.
4
Video Display Corporation and Subsidiaries
Consolidated Statements of Income (unaudited)
|
|
|
Three
Months Ended |
|
||||
|
|
|
2004 |
|
2003 |
|
||
|
|
|
|
|
|
|
||
|
Net sales |
|
$ |
19,900,000 |
|
$ |
19,013,000 |
|
|
|
|
|
|
|
|
||
|
Cost of goods sold |
|
13,314,000 |
|
12,782,000 |
|
||
|
|
|
|
|
|
|
||
|
Gross profit |
|
6,586,000 |
|
6,231,000 |
|
||
|
|
|
|
|
|
|
||
|
Operating expenses |
|
|
|
|
|
||
|
Selling and delivery |
|
1,748,000 |
|
1,779,000 |
|
||
|
General and administrative |
|
2,911,000 |
|
2,917,000 |
|
||
|
|
|
4,659,000 |
|
||||