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 quarterly period ended September 30, 2004
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 1-5881
BNS Co.
(Exact name of registrant as specified in its charter)
| Delaware | 050113140 | |
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
25 Enterprise Center, Suite 103, Middletown, Rhode Island 02842
(Address of principal executive offices and zip code)
(401) 848-6300
(Registrant’s telephone number, including area code)
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 x No ¨
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 2,992,533 shares of Class A common stock, and 29,911 shares of Class B common stock, par value $0.01 per share, outstanding as of October 29, 2004.
PART I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS*
BNS Co.
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands except per share data)
(unaudited)
| For the Quarter Ended September 30, |
For the Nine Months Ended September 30, |
|||||||||||||||
| 2004 |
2003 |
2004 |
2003 |
|||||||||||||
| Revenue |
$ | — | $ | — | $ | — | $ | — | ||||||||
| General and administrative |
786 | 756 | 1,918 | 2,570 | ||||||||||||
| Operating loss |
(786 | ) | (756 | ) | (1,918 | ) | (2,570 | ) | ||||||||
| Interest expense |
— | 14 | — | 55 | ||||||||||||
| Other income, net |
105 | 10 | 169 | 46 | ||||||||||||
| Loss from continuing operations before income tax |
(681 | ) | (760 | ) | (1,749 | ) | (2,579 | ) | ||||||||
| Income tax provision |
— | — | — | — | ||||||||||||
| Loss from continuing operations |
(681 | ) | (760 | ) | (1,749 | ) | (2,579 | ) | ||||||||
| Income from discontinued operations, net of income taxes of $0, $310, $2 and $403 |
52 | 15,318 | 9,412 | 16,102 | ||||||||||||
| Net income (loss) |
$ | (629 | ) | $ | 14,558 | $ | 7,663 | $ | 13,523 | |||||||
| Net income (loss) per share basic and diluted: |
||||||||||||||||
| Continuing operations |
$ | (0.23 | ) | $ | (0.25 | ) | $ | (0.58 | ) | $ | (0.87 | ) | ||||
| Discontinued operations |
.02 | 5.14 | 3.14 | 5.47 | ||||||||||||
| Net income (loss) per common share basic and diluted |
$ | (0.21 | ) | $ | 4.89 | $ | 2.56 | $ | 4.60 | |||||||
2
BNS Co.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
| September 30, 2004 (unaudited) |
December 31, 2003 Restated |
|||||||
| ASSETS | ||||||||
| Current Assets: |
||||||||
| Cash |
$ | 16,400 | $ | 14,101 | ||||
| Marketable Securities |
5,000 | — | ||||||
| Other receivable, net of allowance $37 at December 31, 2003 |
9 | 142 | ||||||
| Assets held for sale or disposition |
— | 868 | ||||||
| Prepaid expenses & other current assets |
836 | 1,158 | ||||||
| Total current assets |
22,245 | 16,269 | ||||||
| Machinery and Equipment: |
||||||||
| Machinery and equipment |
37 | 37 | ||||||
| Less accumulated depreciation |
24 | 20 | ||||||
| 13 | 17 | |||||||
| Restricted cash |
1,390 | 331 | ||||||
| $ | 23,648 | $ | 16,617 | |||||
| LIABILITIES AND SHAREOWNERS’ EQUITY | ||||||||
| Current liabilities: |
||||||||
| Accounts payable and accrued expenses |
$ | 1,569 | $ | 1,522 | ||||
| Liabilities assumed |
— | 298 | ||||||
| Total current liabilities |
1,569 | 1,820 | ||||||
| Long-term liabilities |
1,154 | 1,351 | ||||||
| Commitments and contingencies |
— | — | ||||||
| Shareowners’ equity: |
||||||||
| Preferred stock; $1.00 par value; authorized 1,000,000 shares; none issued |
— | — | ||||||
| Common Stock: |
||||||||
| Class A, par value, $.01; authorized 30,000,000 shares; issued 3,001,051 shares at September 30, 2004 and 3,000,342 shares at December 31, 2003 |
30 | 30 | ||||||
| Class B, par value, $.01; authorized 2,000,000 shares; issued 29,911 at September 30, 2004 and 35,620 at December 31, 2003 |
1 | 1 | ||||||
| Additional paid-in capital |
87,077 | 87,071 | ||||||
| Retained deficit |
(65,712 | ) | (73,375 | ) | ||||
| Unamortized value of restricted stock awards |
(16 | ) | (40 | ) | ||||
| Accumulated other comprehensive income |
— | 214 | ||||||
| Treasury stock at cost: 8,518 shares at September 30, 2004 and December 31, 2003 |
(455 | ) | (455 | ) | ||||
| Total shareowners’ equity |
20,925 | 13,446 | ||||||
| $ | 23,648 | $ | 16,617 | |||||
* The accompanying notes are an integral part of the financial statements.
3
BNS Co.
CONSOLIDATED STATEMENT OF CASH FLOWS
(dollars in thousands)
(unaudited)
| For the Nine Months Ended September 30, |
||||||||
| 2004 |
2003 |
|||||||
| Cash Used in Operations: |
||||||||
| Net income |
$ | 7,663 | $ | 13,523 | ||||
| Adjustments to reconcile net loss to net cash provided by operating activities: |
||||||||
| Depreciation and amortization |
34 | 153 | ||||||
| Gain on sale of business, net of expenses |
(9,309 | ) | (15,210 | ) | ||||
| Changes in operating assets and liabilities |
(4,523 | ) | (5,810 | ) | ||||
| Changes in assets and liabilities related to discontinued operations and assets held for sale |
(34 | ) | 1,059 | |||||
| Payment of long term sales and used tax liability |
(172 | ) | — | |||||
| Changes in restricted cash |
(1,069 | ) | (331 | ) | ||||
| Net Cash Used in Operations |
(7,410 | ) | (6,616 | ) | ||||
| Investment Transactions: |
||||||||
| Proceeds from sale of business, net of expenses |
9,654 | 19,712 | ||||||
| Payment related to sale of Electronics Division |
— | (307 | ) | |||||
| Proceeds from sale of available for sale securities |
— | 97 | ||||||
| Cash Provided by Investing Transactions |
9,654 | 19,502 | ||||||
| Financing Transactions: |
||||||||
| Payment of notes payable |
— | (2,360 | ) | |||||
| Cash Used in Financing Transactions |
— | (2,360 | ) | |||||
| Effect of Exchange Rate Changes on Cash |
55 | 6 | ||||||
| Cash and Cash Equivalents: |
||||||||
| Increase during the period |
2,299 | 10,532 | ||||||
| Beginning balance |
14,101 | 4,416 | ||||||
| Ending balance |
$ | 16,400 | $ | 14,948 | ||||
| Supplementary Cash Flow Information: |
||||||||
| Income taxes paid |
$ | 30 | $ | — | ||||
| Interest paid |
$ | — | $ | 130 | ||||
* The accompanying notes are an integral part of the financial statements.
4
BNS Co.
CONSOLIDATED STATEMENT OF SHAREOWNERS’ EQUITY
(in thousands)
For the Nine Months ended September 30, 2004
| Shares |
Common Stock $.01 par value |
Additional paid in capital |
Retained deficit |
Unamortized value of restricted stock awards |
Accumulated other comprehensive income (loss) |
Treasury stock |
Total Equity |
|||||||||||||||||||||||
| Balance at January 1, 2004 |
3,036 | $ | 31 | $ | 87,071 | $ | (73,375 | ) | $ | (40 | ) | $ | 214 | $ | (455 | ) | $ | 13,446 | ||||||||||||
| Net loss |
— | — | — | (683 | ) | — | — | — | (683 | ) | ||||||||||||||||||||
| Foreign currency translation adjustment |
— | — | — | — | — | 9 | — | 9 | ||||||||||||||||||||||
| Comprehensive loss |
(674 | ) | ||||||||||||||||||||||||||||
| Restricted stock awards |
7 | — | 44 | — | (44 | ) | — | — | — | |||||||||||||||||||||
| Amortization of restricted stock awards |
— | — | — | — | 20 | — | — | 20 | ||||||||||||||||||||||
| Balance at March 31, 2004 |
3,043 | $ | 31 | $ | 87,115 | $ | (74,058 | ) | $ | (64 | ) | $ | 223 | $ | (455 | ) | $ | 12,792 | ||||||||||||
| Net income |
— | — | — | 8,975 | — | — | — | 8,975 | ||||||||||||||||||||||
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