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 |
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For the quarterly period ended September 30, 2004 |
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OR |
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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 |
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Commission file number 0-5228 |
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STRATEGIC DISTRIBUTION, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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22-1849240 |
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(State or other
jurisdiction of |
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(I. R. S.
Employer |
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1414 Radcliffe Street, Suite 300, Bristol, PA |
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19007 |
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(Address of principal executive offices) |
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(Zip Code) |
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215-633-1900 |
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(Registrant’s telephone number, including area code) |
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(Former name, former address and former fiscal year, if changed since last report) |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 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 registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý
Number of Common Shares outstanding at November 4, 2004: 2,954,474
TABLE OF CONTENTS
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Part I – Financial Information |
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Item 1 |
Consolidated Financial Statements: |
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Condensed Consolidated Balance Sheets - September 30, 2004 (unaudited) and December 31, 2003 |
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Consolidated Statements of Cash Flows (unaudited) - Nine Months Ended September 30, 2004 and 2003 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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2
STRATEGIC DISTRIBUTION, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except share data)
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September 30, |
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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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$ |
27,853 |
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$ |
24,787 |
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Short-term investments |
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— |
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5,053 |
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Accounts receivable, net |
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18,350 |
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11,890 |
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Recoverable income taxes |
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— |
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585 |
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Inventories, net |
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12,331 |
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18,930 |
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Prepaid expenses and other current assets |
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476 |
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500 |
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Total current assets |
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59,010 |
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61,745 |
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Office fixtures and equipment, net |
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2,780 |
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3,550 |
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Deferred income taxes |
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438 |
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170 |
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Other assets |
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39 |
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38 |
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Total assets |
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$ |
62,267 |
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$ |
65,503 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable and accrued expenses |
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$ |
13,531 |
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$ |
14,278 |
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Total current liabilities |
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13,531 |
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14,278 |
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Stockholders’ equity: |
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Preferred stock,
par value $.10 per share. |
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— |
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— |
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Common stock,
par value $.10 per share. |
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309 |
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309 |
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Additional paid-in capital |
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82,205 |
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82,201 |
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Accumulated deficit |
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(31,572 |
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(29,054 |
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Accumulated other comprehensive loss |
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— |
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(25 |
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Treasury stock, at cost (136,500 as of September 30, 2004 December 31, 2003) |
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(2,206 |
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(2,206 |
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Total stockholders’ equity |
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48,736 |
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51,225 |
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Total liabilities and stockholders’ equity |
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$ |
62,267 |
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$ |
65,503 |
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See accompanying notes to consolidated financial statements.
3
STRATEGIC DISTRIBUTION, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(unaudited)
(in thousands, except share data)
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Three months ended September 30, |
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Nine months ended September 30, |
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2004 |
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2003 |
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2004 |
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2003 |
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Revenues |
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$ |
30,527 |
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$ |
30,033 |
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$ |
89,937 |
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$ |
108,119 |
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Costs and expenses: |
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Cost of materials |
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24,932 |
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23,520 |
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71,787 |
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84,947 |
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Operating wages and benefits |
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2,163 |
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2,593 |
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6,682 |
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9,224 |
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Other operating expenses |
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902 |
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903 |
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2,600 |
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2,932 |
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Selling, general and administrative expenses |
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4,049 |
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3,583 |
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11,625 |
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11,152 |
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Total costs and expenses |
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32,046 |
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30,599 |
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92,694 |
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108,255 |
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Operating loss |
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(1,519 |
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(566 |
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(2,757 |
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(136 |
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Interest and other income |
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99 |
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122 |
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228 |
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409 |
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Income (loss) before income taxes |
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(1,420 |
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(444 |
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(2,529 |
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273 |
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Income tax (expense) benefit |
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54 |
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(17 |
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11 |
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(307 |
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Net loss |
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$ |
(1,366 |
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$ |
(461 |
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$ |
(2,518 |
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(34 |
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Net loss per common share - basic and diluted |
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