UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the period ended April 30, 2003
OR
| ¨ | 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 0-6715
ANALOGIC CORPORATION
(Exact name of registrant as specified in its charter)
| Massachusetts | 04-2454372 | |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
| 8 Centennial Drive, Peabody, Massachusetts | 01960 | |
| (Address of principal executive offices) | (Zip Code) | |
(978) 977-3000
(Registrant’s telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last report.)
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 x No ¨
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes x No ¨
The number of shares of Common Stock outstanding at June 4, 2003 was 13,421,684.
ANALOGIC CORPORATION
| Page No. | ||||||
| Part I. Financial Information |
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| Item 1. |
Financial Statements |
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|
Unaudited Condensed Consolidated Balance Sheets as of April 30, 2003 and July 31, 2002 |
3 | |||||
| Unaudited Condensed Consolidated Statements of Operations for the Three and Nine Months Ended April 30, 2003 and 2002 | 4 | |||||
| Unaudited Condensed Consolidated Statements of Cash Flows for the Nine Months Ended April 30, 2003 and 2002 | 5 | |||||
| Notes to Unaudited Condensed Consolidated Financial Statements |
6-16 | |||||
| Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations | 17-27 | ||||
| Item 3. |
28 | |||||
| Item 4. |
28 | |||||
| Part II. Other Information |
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| Item 6. |
29 | |||||
| 30 | ||||||
| 31-32 | ||||||
| 33 | ||||||
2
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
ANALOGIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
| April 30, 2003 |
July 31, 2002 |
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| ASSETS | ||||||||
| Current assets: |
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| Cash and cash equivalents |
$ | 143,607 | $ | 123,168 | ||||
| Marketable securities, at market |
44,344 | 58,621 | ||||||
| Accounts and notes receivable, net of allowance for doubtful accounts of $2,841 at April 30, 2003 and $1,308 at July 31, 2002. |
55,712 | 61,119 | ||||||
| Inventories (Note 3) |
62,686 | 65,128 | ||||||
| Refundable and deferred income taxes |
7,774 | 9,023 | ||||||
| Other current assets |
7,944 | 7,969 | ||||||
| Total current assets |
322,067 | 325,028 | ||||||
| Property, plant and equipment, net |
84,276 | 79,613 | ||||||
| Investments in and advances to affiliated companies (Note 5) |
6,050 | 8,619 | ||||||
| Capitalized software, net |
5,359 | 4,333 | ||||||
| Goodwill (Note 6) |
3,596 | 258 | ||||||
| Intangible assets, net (Note 6) |
15,588 | 5,836 | ||||||
| Other assets |
2,334 | 220 | ||||||
| Total assets |
$ | 439,270 | $ | 423,907 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: |
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| Mortgage and other notes payable |
$ | 1,389 | $ | 226 | ||||
| Obligations under capital leases |
209 | 314 | ||||||
| Accounts payable, trade |
20,373 | 24,731 | ||||||
| Accrued liabilities (Note 3) |
24,800 | 17,267 | ||||||
| Advance payments and deferred revenue (Note 3) |
15,950 | 66,474 | ||||||
| Accrued income taxes |
9,018 | 2,487 | ||||||
| Total current liabilities |
71,739 | 111,499 | ||||||
| Long-term liabilities: |
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| Mortgage and other notes payable |
3,895 | 4,069 | ||||||
| Obligations under capital leases |
243 | 337 | ||||||
| Deferred revenue and other |
595 | 745 | ||||||
| Deferred income taxes |
6,247 | 2,162 | ||||||
| Total long-term liabilities |
10,980 | 7,313 | ||||||
| Commitments and guarantees (Note 13) |
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| Stockholders’ equity: |
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| Common stock, $.05 par |
709 | 706 | ||||||
| Capital in excess of par value |
44,215 | 39,379 | ||||||
| Retained earnings |
321,744 | 277,074 | ||||||
| Accumulated other comprehensive income |
2,636 | 458 | ||||||
| Treasury stock, at cost |
(7,447 | ) | (8,313 | ) | ||||
| Unearned compensation |
(5,306 | ) | (4,209 | ) | ||||
| Total stockholders’ equity |
356,551 | 305,095 | ||||||
| Total liabilities and stockholders’ equity |
$ | 439,270 | $ | 423,907 | ||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
3
ANALOGIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands except per share data)
| Three Months Ended April 30, |
Nine Months Ended April 30, |
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| 2003 |
2002 |
2003 |
2002 |
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| Net revenue: |
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| Product |
$ | 93,667 | $ | 64,979 | $ | 373,715 | $ | 196,729 | ||||||||
| Engineering |
4,949 | 5,988 | 16,804 | 17,726 | ||||||||||||
| Other |
1,718 | 1,941 | 6,084 | 6,865 | ||||||||||||
| Total net revenue |
100,334 | 72,908 | 396,603 | 221,320 | ||||||||||||
| Cost of sales: |
||||||||||||||||
| Product |
56,645 | 40,674 | 216,906 | 124,360 | ||||||||||||
| Engineering |
3,802 | 5,620 | 12,205 | 17,474 | ||||||||||||
| Other |
1,094 | 1,126 | 3,460 | 3,847 | ||||||||||||
| Asset impairment charges |
— | — | — | 8,883 | ||||||||||||
| Total cost of sales |
61,541 | 47,420 | 232,571 | 154,564 | ||||||||||||
| Gross margin |
38,793 | 25,488 | 164,032 | 66,756 | ||||||||||||
| Operating expenses: |
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| Research and product development |
14,591 | 9,222 | 40,539 | 29,766 | ||||||||||||
| Selling and marketing |
8,965 | 8,200 | 25,757 | 24,641 | ||||||||||||
| General and administrative |
8,328 | 6,905 | 25,260 | 21,681 | ||||||||||||
| 31,884 | 24,327 | 91,556 | 76,088 | |||||||||||||
| Income (loss) from operations |
6,909 | 1,161 | 72,476 | (9,332 | ) | |||||||||||
| Other (income) expense: |
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| Interest income |
(1,302 | ) | (980 | ) | (3,811 | ) | (3,250 | ) | ||||||||
| Interest expense |
89 | 67 | 240 | 304 | ||||||||||||
| Equity in unconsolidated affiliates |
203 | 688 | 1,792 | (681 | ) | |||||||||||
| Other |
(641 | ) | (16 | ) | (1,122 | ) | 98 | |||||||||
| (1,651 | ) | (241 | ) | (2,901 | ) | (3,529 | ) | |||||||||
| Income (loss) before income taxes |
8,560 | 1,402 | 75,377 | (5,803 | ) | |||||||||||
| Provision (benefit) for income taxes (Note 11) |
2,122 | (1,345 | ) | 27,512 | (2,785 | ) | ||||||||||
| Net income (loss) |
$ | 6,438 | $ | 2,747 | $ | 47,865 | $ | (3,018 | ) | |||||||
| Net income (loss) per common share: (Note 7) |
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| Basic |
$ | 0.48 | $ | 0.21 | $ | 3.62 | $ | (0.23 | ) | |||||||
| Diluted |
$ | 0.48 | $ | 0.21 | $ | 3.59 | $ | (0.23 | ) | |||||||
| Weighted average shares outstanding: (Note 7) |
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| Basic |
13,290 | 13,112 | 13,225 | 13,107 | ||||||||||||
| Diluted |
13,390 | 13,256 | 13,351 | 13,107 | ||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
4
ANALOGIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
| Nine Months Ended April 30, |
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| 2003 |
2002 |
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| OPERATING ACTIVITIES: |
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| Net income (loss) |
$ | 47,865 | $ | (3,018 | ) | |||
| Adjustments to reconcile net income to net cash provided by operating activities: |
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| Deferred income taxes |
3,616 | (4,134 | ) | |||||
| Depreciation and amortization |
& | |||||||