UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE |
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TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE |
For the transition period from: To:
Commission File Number: 0-23996
SCHMITT INDUSTRIES, INC.
(Exact Name of Registrant as Specified in its Charter)
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Oregon |
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93-1151989 |
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(State of Incorporation) |
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(IRS Employer ID Number) |
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2765 NW Nicolai Street, Portland, Oregon 97210 |
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(Address of Registrant’s Principal Executive Office) |
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(503) 227-7908
(Registrant’s Telephone Number)
Indicate by check mark whether the registrant has (1) filed all reports required to be filed by Section 13 of 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
The number of shares of each class of common stock outstanding as of December 31, 2004
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Common stock, no par value |
2,537,748 |
SCHMITT INDUSTRIES, INC.
INDEX TO FORM 10-Q
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• For the Three and Six Months Ended November 30, 2004 and 2003 |
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Notes to Consolidated Interim Financial Statements: |
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• Six Months Ended November 30, 2004 and 2003 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Certifications |
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2
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Financial Statements |
SCHMITT INDUSTRIES, INC.
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November 30,2004 |
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May 31, 2004 |
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Unaudited |
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ASSETS |
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Current assets |
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Cash |
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$ |
640,940 |
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$ |
604,194 |
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Accounts receivable, net of allowance of $33,078 and $32,550 at November 30, 2004 and May 31, 2004 respectively |
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1,907,661 |
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1,815,417 |
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Inventories |
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3,697,249 |
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2,915,093 |
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Prepaid expenses |
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197,690 |
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124,348 |
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Income taxes receivable |
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5,944 |
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35,894 |
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6,449,484 |
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5,494,946 |
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Property and equipment |
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Land |
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299,000 |
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299,000 |
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Buildings and improvements |
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1,214,547 |
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1,214,500 |
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Furniture, fixtures and equipment |
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1,158,302 |
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1,115,788 |
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Vehicles |
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90,882 |
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94,261 |
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2,762,731 |
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2,723,549 |
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Less accumulated depreciation and amortization |
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1,456,990 |
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1,395,634 |
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1,305,741 |
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1,327,915 |
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Other assets |
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Long-term deferred tax asset |
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— |
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— |
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Other assets |
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260,311 |
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277,612 |
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260,311 |
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277,612 |
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TOTAL ASSETS |
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$ |
8,015,536 |
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$ |
7,100,473 |
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LIABILITIES & STOCKHOLDERS’ EQUITY |
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Current liabilities |
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Accounts payable |
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$ |
785,364 |
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$ |
565,546 |
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Accrued commissions |
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252,390 |
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189,679 |
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Customer deposits |
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68,373 |
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53,203 |
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Accrued liabilities |
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105,897 |
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111,165 |
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Current portion of long-term debt |
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32,037 |
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39,831 |
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Total current liabilities |
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1,244,061 |
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959,424 |
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Long-term debt |
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9,990 |
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27,242 |
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Stockholders’ equity |
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Common stock, no par value, 20,000,000 shares authorized, 2,532,819 and 2,474,461 shares issued and outstanding at November 30, 2004 and May 31, 2004, respectively |
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7,455,601 |
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7,360,819 |
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Accumulated other comprehensive loss |
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(392,575 |
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(376,249 |
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Accumulated deficit |
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(301,541 |
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(870,763 |
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Total stockholders’ equity |
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6,761,485 |
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6,113,807 |
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
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$ |
8,015,536 |
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$ |
7,100,473 |
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The accompanying notes are an integral part of these financial statements.
3
SCHMITT INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED NOVEMBER 30, 2004 AND 2003
(UNAUDITED)
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Three Months Ended November 30, |
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Six Months Ended November 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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Net sales |
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$ |
2,432,771 |
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$ |
1,735,734 |
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$ |
4,861,500 |
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$ |
3,383,935 |
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Cost of sales |
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999,325 |
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805,342 |
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2,069,718 |
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1,569,914 |
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Gross profit |
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1,433,446 |
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930,392 |
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2,791,782 |
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1,814,021 |
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