LANCER CORP /TX/ - 10-Q Quarterly Report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)

ý		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2005

OR

o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 0-13875

LANCER CORPORATION

(Exact name of registrant as specified in its charter)

Texas		74-1591073
(State or other jurisdiction of		(I.R.S. Employer Identification No.)
incorporation or organization)

6655 LANCER BLVD.

SAN ANTONIO, TEXAS

(Address of principal executive offices)

(210) 310-7000

(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 Exchange Act during the past 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 Exchange Act Rule 12b-2). Yes o No ý

The number of shares of registrant’s common stock outstanding as of April 29, 2005 was 9,486,028.

PART I

FINANCIAL INFORMATION

Item 1. Financial Statements.

LANCER CORPORATION

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)

ASSETS

	March 31,			December 31,
	2005			2004
	(Unaudited)

Current assets:
Cash	$	5,136		$	5,196
Receivables:
Trade accounts and notes	17,135			16,733
Other	699			801
	17,834			17,534
Less allowance for doubtful accounts	(282		)	(420		)

Net receivables	17,552			17,114

Inventories, net	26,008			24,495
Prepaid expenses	1,060			406
Deferred tax asset	814			824

Total current assets	50,570			48,035

Net property, plant and equipment	29,046			29,999
Investment in joint ventures	2,487			2,388
Goodwill	1,879			1,879
Intangibles and other assets, at cost, less accumulated amortization	3,419			3,186

	$	87,401		$	85,487

See accompanying notes to consolidated financial statements.

LANCER CORPORATION

CONSOLIDATED BALANCE SHEETS (continued)

(Amounts in thousands, except share data)

LIABILITIES AND SHAREHOLDERS’ EQUITY

	March 31,			December 31,
	2005			2004
	(Unaudited)

Current liabilities:
Accounts payable	$	7,532		$	7,555
Current maturities of long-term debt	1,348			1,345
Deferred licensing and maintenance fees	388			451
Accrued expenses and other liabilities	6,562			8,029
Income taxes payable	1,499			286
Total current liabilities	17,329			17,666

Deferred tax liability	3,197			3,401
Long-term debt, excluding current maturities	93			132
Deferred licensing and maintenance fees	1,300			1,273

Total liabilities	21,919			22,472

Commitments and contingencies

Shareholders’ equity:
Preferred stock, without par value
5,000,000 shares authorized; none issued	—			—

Common stock, $.01 par value:
50,000,000 shares authorized; 9,550,254 issued and 9,486,028 outstanding in 2005, and 9,522,054 issued and 9,457,828 outstanding in 2004	95			95

Additional paid-in capital	13,356			13,208

Accumulated other comprehensive income	280			523

Deferred compensation	(8		)	(18		)

Retained earnings	52,119			49,567

Less common stock in treasury, at cost; 64,227 shares in 2005 and 2004	(360		)	(360		)

Total shareholders’ equity	65,482			63,015

	$	87,401		$	85,487

See accompanying notes to consolidated financial statements.

		Three Months Ended
		March 31,