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Operating expenses for the first quarter of
fiscal 1994 were approximately equal with
those in the comparable period last year.
Increased engineering costs related to product
development and prototypes at Barry Controls
and Power-Packer were offset by operating
efficiencies realized as a result of fiscal
1993 restructuring of Barry Controls.
Interest expense declined from the first
quarter of fiscal 1993 due to reductions in
outstanding indebtedness and lower market
interest rates.
Other-net operating expenses in fiscal 1993
included certain non-recurring gains.
A $4,355 net charge was recorded in the
quarter ended November 30, 1992 to reflect the
Company's adoption of SFAS No. 106 -
"Employers' Accounting for Postretirement
Benefits Other Than Pensions".
LIQUIDITY AND CAPITAL RESOURCES
Cash and cash equivalents totaled $1,546 at
November 30, 1993 and $939 at August 31, 1993.
In order to minimize interest expense, the
Company intentionally maintains low cash
balances and uses available cash to reduce
short-term bank borrowings.
After considering non-cash items and changes
in operating assets and liabilities, the
Company generated $2,979 of cash in operating
activities in the first three months of fiscal
1994, compared with $(43) in the comparable
prior year period. Earnings of $2,580,
coupled with non-cash items of $4,014,
generated $6,594 of cash in the most recent
quarter. However, income tax payments
partially offset this cash generation.
The Company used $3,771 of cash in investing
activities in the first quarter of fiscal
1994, the majority of which was utilized for
capital expenditures and the acquisition of
Palmer Industries.
Debt was reduced from $117,931 at August 31,
1993 to $112,422 at November 30, 1993,
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