UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
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QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES |
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For the quarterly period ended August 31, 2004. |
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TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES |
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For the transition period from to |
Commission File Number: 000-24413
TROY GROUP, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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33-0807798 |
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(State or other jurisdiction of |
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(I.R.S. Employer Identification No.) |
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2331 South Pullman Street |
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92705 |
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(Address of principal executive offices) |
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(Zip code) |
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(949) 250-3280 |
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(Registrant’s telephone number, including area code) |
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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 Securities Exchange Act of 1934). Yes o No ý
As of October 14, 2004, 10,639,877 shares of the Registrant’s Common Stock were outstanding.
TROY GROUP, INC.
Quarterly Report on Form 10-Q for the
Quarterly Period Ended May 31, 2004
INDEX
2
TROY GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
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August 31, |
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November 30, |
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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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$ |
4,215 |
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$ |
1,727 |
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Investment in available-for-sale securities |
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6,754 |
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8,000 |
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Accounts receivable, less allowance for doubtful accounts $351 in 2004; $393 in 2003 |
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7,421 |
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8,419 |
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Inventories, net |
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5,826 |
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4,891 |
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Prepaid expenses and other |
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1,129 |
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1,414 |
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Deferred tax assets |
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2,789 |
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2,789 |
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Total current assets |
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28,134 |
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27,240 |
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Equipment and leasehold improvements, net |
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2,942 |
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3,213 |
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Goodwill |
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281 |
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281 |
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Receivable from stockholders |
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1,903 |
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1,903 |
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Deferred tax assets |
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1,191 |
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1,330 |
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Other assets |
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619 |
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993 |
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Total assets |
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$ |
35,070 |
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$ |
34,960 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable |
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$ |
2,105 |
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$ |
2,172 |
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Accrued expenses |
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3,744 |
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4,322 |
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Deferred revenue |
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1,965 |
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1,807 |
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Total current liabilities |
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7,814 |
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8,301 |
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Commitments
and contingencies |
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Preferred stock, no par value, authorized 5,000,000 shares, issued none |
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— |
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— |
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Common stock, par value $.01 per share, authorized 50,000,000 shares, issued 10,642,677 shares in 2004; 10,974,170 shares in 2003 |
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107 |
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110 |
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Additional paid-in capital |
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19,921 |
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21,122 |
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Accumulated other comprehensive income |
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34 |
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33 |
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Retained earnings |
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7,202 |
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6,598 |
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27,264 |
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27,863 |
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Less cost of treasury stock, 2,800 shares in 2004; 331,493 shares in 2003 |
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(8 |
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(1,204 |
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Total stockholders’ equity |
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27,256 |
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26,659 |
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Total liabilities and stockholders’ equity |
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$ |
35,070 |
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$ |
34,960 |
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(a) Derived from the audited consolidated financial statements for the year ended November 30, 2003
See Notes to Condensed Interim Consolidated Financial Statements.
3
TROY GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS
OF INCOME
(Unaudited)
(in thousands, except per share amounts)
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Three Months Ended |
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Nine Months Ended |
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2004 |
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2003 |
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2004 |
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2003 |
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Net sales |
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$ |
13,208 |
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$ |
14,671 |
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$ |
41,248 |
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$ |
42,474 |
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Cost of goods sold |
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7,871 |
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9,636 |
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24,899 |
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26,267 |
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Gross profit |
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5,337 |
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5,035 |
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16,349 |
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16,207 |
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Operating expenses: |
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Selling, general and administrative |
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3,819 |
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3,590 |
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11,909 |
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11,302 |
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Research and development |
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1,146 |
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1,265 |
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3,482 |
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3,957 |
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Amortization of intangible assets |
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18 |
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11 |
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69 |
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33 |
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Operating income |
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354 |
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169 |
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