Acrodyne Communications, Inc.
Consolidated Balance Sheet (Unaudited)
June 30, December 31,
1999 1998
Assets
Current assets:
Cash and cash equivalents $ 1,721,415 $ 983,695
Accounts receivable, net of allowance for doubtful accounts 1,516,044 1,497,197
Inventories 5,934,487 4,325,445
Prepaid expenses and deposits 71,596 170,958
------------ ------------
Total current assets 9,243,542 6,977,295
Property, plant and equipment, net 522,139 504,469
Non-compete agreement, net 398,322 435,822
Goodwill, net 3,977,459 4,055,707
------------ ------------
Total assets 14,141,462 11,973,293
============ ============
Liabilities and Shareholders' Equity
Current Liabilities:
Current portion of long-term debt 75,630 75,630
Borrowings under Credit Line 1,600,000 1,275,000
Accounts payable 1,244,847 2,119,604
Accrued expenses 459,931 386,363
Customer advances 548,098 161,418
------------ ------------
Total current liabilities 3,928,506 4,018,015
Long-term debt 49,034 69,824
Non-compete liability 706,594 712,168
------------ ------------
Total liabilities 4,684,134 4,800,007
------------ ------------
Shareholders' equity:
Preferred Stock Series "A" par value $1.00
8% Preferred Redeemable Convertible Stock -- 326,530
Preferred stock, par value $1.00
8% Convertible Redeemable Preferred Stock 6,500 6,500
Common stock, par value $.01; 35,000,000 shares authorized
6,769,523 shares issued and outstanding on June 30, 1999 67,695 53,317
5,331,670 shares issued and outstanding on December 31, 1998
Additional paid-in-capital 20,779,766 17,720,449
Accumulated deficit (11,396,633) (10,933,510)
------------ ------------
Total liabilities and shareholders' equity $ 14,141,462 $ 11,973,293
============ ============
See notes to consolidated financial statements
2
Acrodyne Communications, Inc.
Consolidated Statement of Operations (Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
----------- ----------- ----------- -----------
Net Sales $ 2,379,605 $ 3,431,505 $ 5,402,696 $ 6,595,480
Cost of Sales 1,594,169 2,108,935 3,525,518 4,242,373
----------- ----------- ----------- -----------
Gross Profit 785,436 1,322,570 1,877,178 2,353,107
----------- ----------- ----------- -----------
Operating Expenses:
Engineering, R & D 211,912 208,339 436,391 427,777
Selling 429,778 506,258 780,970 844,094
Administration 526,317 470,760 954,429 856,194
Amortization 57,874 57,874 115,748 115,748
----------- ----------- ----------- -----------
Total Operating Expenses 1,225,881 1,243,231 2,287,538 2,243,813
----------- ----------- ----------- -----------
Operating Profit (Loss) (440,445) 79,339 (410,360) 109,294
Other Income (Expense)
Interest Expense, Net (41,187) (34,011) (53,104) (28,338)
Other Income, Net 9 600 341 602
----------- ----------- ----------- -----------
Net Income (Loss) (481,623) 45,928 (463,123) 81,558
----------- ----------- ----------- -----------
Dividend on 8% Preferred Stock (14,028) (14,028) (28,056) (28,056)
----------- ----------- ----------- -----------
Net Income (Loss) available to Common Shares (495,651) 31,900 (491,179) 53,502
=========== =========== =========== ===========
Net Income (Loss) per Common share basic $ (0.0700) $ 0.0060 $ (0.0700) $ 0.0100
Weighted average shares outstanding basic 6,769,523 5,318,995 6,545,047 5,316,533
Net Income (Loss) per Common share diluted $ (0.0700) $ 0.0060 $ (0.0700) $ 0.0100
Weighted average shares outstanding diluted 6,769,523 5,666,154 6,545,047 5,608,379
See notes to consolidated financial statements
3
Acrodyne Communications, Inc.
Consolidated statement of cash flows (Unaudited)
June 30, Dec 31,
1999 1998
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (463,123) $ 81,558
Adjustments to reconcile net income (loss) to net cash used
in operating activities:
Depreciation and amortization 222,431 225,310
Changes in assets and liabilities:
Accounts receivable (18,847) (1,307,744)
Inventories (1,609,042) (590,703)
Note receivable (3,009)
Prepaid and deposits 99,362 (214,035)
Accounts payable (874,757) 48,986
Accrued expenses 73,568 (34,922)
Customer advances 386,680 17,522
----------- -----------
Net cash used in operating activities (2,183,728) (1,777,037)
CASH FROM INVESTING ACTIVITIES:
Purchase of property, plant, and equipment (124,353) (45,949)
----------- -----------
Net cash used in investing activities (124,353) (45,949)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the issuance of common stock, net 3,806,001 16,380
Proceeds from the line of credit borrowings 325,000 1,200,000
Dividends on convertible preferred stock, net (28,056) (28,056)
Repurchase of 8% Conv. Preferred stock (1,030,780)
Payments on promissory notes (135,000)
Capital lease repayments (20,790) (55,523)
Repayments on non-compete liability (5,574) (5,152)
----------- -----------
Net cash provided by financing activities 3,045,801 992,649
Net increase (decrease) in cash and cash equivalents 737,720 (830,337)
Cash and cash equivalents at beginning of period 983,695 3,011,294
----------- -----------
Cash and cash equivalents at end of period $ 1,721,415 $ 2,180,957
=========== ===========
Supplemental cash flow information:
Cash paid for interest $ 62,805 $ 53,705
See notes to consolidated financial statements
4
Acrodyne Communications, Inc.
Notes to Consolidated Financial Statements
1. Unaudited Consolidated Financial Statements
The accompanying consolidated balance sheet of Acrodyne Communications, Inc.
(the "Company") and its subsidiaries (collectively "Acrodyne") at June 30, 1999
and the related consolidated statements of operations and of cash flows for the
six months ended June 30, 1999 and 1998 have been prepared by management. In the
opinion of management, all adjustments (consisting of normal recurring
adjustments only) necessary to present fairly the financial position at June 30,
1999, and the results of operations and cash flows for the three and six months
ended June 30, 1999 and 1998 have been made.
These consolidated financial statements should be read in conjunction with the
financial statements and notes thereto included in the Company's Annual Report
on Form 10-KSB for the year ended December 31, 1998 filed with the Securities
and Exchange Commission. The results of operations for interim periods are not
necessarily indicative of the results to be obtained for the entire year.
2. Inventories
Inventories comprise:
June 30, 1999 December 31, 1998
Raw materials $3,685,247 $2,779,646
Work in process 789,287 576,973
Finished goods 1,815,953 1,324,826
Inventory reserves (356,000) (356,000)
================= ================
5,934,487 4,325,445
|
