UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

 

FORM 10-Q

 

 

(Mark One)

[ X ] 		**QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
			OF THE SECURITIES EXCHANGE ACT OF 1934**
For the quarterly period ended: January 31, 2001**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 0-12619
Collins Industries, Inc. .
(Exact name of registrant as specified in its charter)

Missouri 		 43-0985160 .
(State or other jurisdiction of incorporation)				 (I.R.S. Employer Identification Number)

15 Compound Drive Hutchinson, Kansas 67502-4349 .
(Address of principal executive offices)						 (Zip Code)

Registrant's telephone number including area code	  620-663-5551 .
 

 

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 requiredto file such reports), and (2) has been subject to such filing requirements for the past 90 days.

 

 

					 Yes X .	No .
 

 

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

 

 

 

Common Stock, $.10 par value						 7,361,455 .
		Class						 Outstanding at March 6, 2001**COLLINS INDUSTRIES, INC. AND SUBSIDIARIES

FORM 10-Q

January 31, 2001

INDEX

PART I.
FINANCIAL INFORMATION
PAGE NO.
 
 
 
Item 1.
Financial Statements:
 
 
 
 
 
Consolidated Condensed Balance Sheets
 
 
January 31, 2001 and October 31, 2000
3
 
 
 
 
Consolidated Condensed Statements of Income
 
 
Three Months Ended January 31, 2001 and 2000
4
 
 
 
 
Consolidated Condensed Statements of Cash Flow
 
 
Three Months Ended January 31, 2001 and 2000
5
 
 
 
 
Notes to Consolidated Condensed Financial Statements
6
 
 
 
Item 2.
 
 
 
 
 
 
Management's Discussion and Analysis of Financial
 
 
Condition and Results of Operations
9
 
 
 
PART II.
OTHER INFORMATION
 
 
 
 
Item 6.
Exhibits and Reports on Form 8-K
13
 
 
 
SIGNATURES
14
PART I - FINANCIAL INFORMATION

Item 1 - Financial Statements

Collins Industries, Inc. and Subsidiaries

CONSOLIDATED CONDENSED BALANCE SHEETS

(Unaudited)

 
January 31,
 
October 31,
 
2001
 
2000
 
 
 
 
ASSETS
 
 
 
Current Assets:
 
 
 
Cash
$ 399,771
 
$ 204,101
Receivables, trade & other
5,746,991
 
10,206,169
Inventories, lower of cost (FIFO) or market
46,854,252
 
41,410,790
Prepaid expenses and other current assets
2,587,393
 
3,049,779
Total current assets
55,588,407
 
54,870,839
 
 
 
 
Property and equipment, at cost
44,662,143
 
44,305,214
Less: accumulated depreciation
25,727,675
 
25,157,372
Net property and equipment
18,934,468
 
19,147,842
Other assets
6,809,167
 
7,003,486
Total assets
$81,332,042
 
$81,022,167
 
 
 
 
LIABILITIES & SHAREHOLDERS' INVESTMENT
 
 
 
Current liabilities:
 
 
 
Current maturities of long-term debt & capitalized leases
$ 3,075,972
 
$ 3,087,968
Accounts payable
23,167,805
 
25,611,383
Accrued expenses
4,131,887
 
6,019,483
Total current liabilities
30,375,664
 
34,718,834
 
 
 
 
Long-term debt and capitalized leases
25,074,043
 
19,015,695
 
 
 
 
Deferred income tax
614,922
 
614,922
 
 
 
 
Shareholders' investment:
 
 
 
Common stock
743,946
 
742,446
Paid-in capital
18,067,970
 
18,026,830
Treasury stock
(498,750)
 
-
Deferred compensation
(978,537)
 
(1,071,169)
Retained earnings
7,932,784
 
8,974,609
Total shareholders' investment
25,267,413
 
26,672,716
Total liabilities & shareholders' investment
$81,332,042
 
$81,022,167
 
 
 
 
 
 
 
 
 
 
 
 
(See accompanying notes)
 
 
 

 

Collins Industries, Inc. and Subsidiaries

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(Unaudited)

 
Three Months Ended
 
January 31,
 
2001
2000
 
 
 
Sales
$42,444,886
$49,713,255
Cost of sales
37,861,131
42,630,975
 
 
 
Gross profit
4,583,755
7,082,280
 
 
 
Selling, general and administrative expenses
4,921,609
5,178,689
 
 
 
Income (loss) from operations
(337,854)
1,903,591
 
 
 
Other income (expense):
 
 
Interest expense
(607,858)
(405,995)
Other, net
(31,808) 
60,665
 
(639,666)
(345,330)
 
 
 
Income (loss) before provision (benefit) for income taxes
(977,520)
1,558,261
 
 
 
Provision (benefit) for income taxes
(370,000)
555,000
 
 
 
 
 
 
Net income (loss)
$ (607,520)
$1,003,261
 
 
 
Earnings (loss) per share:
 
 
Basic
$ (.09)
$ .14 
Diluted
$ (.09)
$ .13 
 
 
 
Dividends per share
$ .0625 
$ .1050 
 
 
 
Weighted average common 
 
 
and common equivalent shares 
 
 
outstanding:
 
 
Basic
7,008,727 
7,212,406 
Diluted
7,008,727 
7,538,214
 
 
 

 

(See accompanying notes)

 

Collins Industries, Inc. and Subsidiaries

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW

(Unaudited)

 
Three Months Ended
 
January 31,
 
2001
2000
Cash flow from operations:
 
 
Cash received from customers
$46,904,064
$49,752,861
Cash paid to suppliers and employees
(50,854,204)
(48,785,703)
Interest paid
(635,628)
(399,178)
Income taxes paid
- 
(73,450)
 
 
 
Cash provided by (used in) operations
(4,585,768)
494,530
 
 
 
Cash flow from investing activities:
 
 
Capital expenditures
(299,042)
(603,730)
Other, net
(32,818)
(14,054)
 
 
 
Cash used in investing activities
(331,860)
(617,784)
 
 
 
Cash flow from financing activities:
 
 
Borrowings of long-term debt
6,881,101
1,703,909
Principal payments of long-term debt 
 
 
and capitalized leases
(834,749)
(376,656)
Purchase of treasury stock
(498,750)
-
Payment of dividends
(434,304)
(772,593)
 
 
 
Cash provided by financing activities
5,113,298
554,660
 
 
 
Net increase in cash
195,670
431,406
 
 
 
Cash at beginning of period
204,101
344,948
 
 
 
Cash at end of period
$ 399,771
$ 776,354
 
 
 
Reconciliation of net income to net cash provided by (used in) operations:
 
 
Net income (loss)
$ (607,520)
$ 1,003,261
Depreciation and amortization
872,755
750,822
Decrease in receivables
4,459,178
39,606
Decrease (increase) in inventories
(5,443,462)
1,171,438
Decrease in prepaid expenses and other current assets
462,386
519,596
Decrease in accounts payable and accrued expenses
(4,331,174)
(2,938,698)
Other
2,069
(51,495)
 
 
 
Cash provided by (used in) operations
$(4,585,768)
$ 494,530
 
 
 
(See accompanying notes)
 
 

 
**COLLINS INDUSTRIES, INC. AND SUBSIDIARIES

Notes to Consolidated Condensed Financial Statements

(Unaudited)
** 

 

(1) General

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure ofcontingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

In the opinion of management, the accompanying unaudited consolidated condensed financial statements contain all adjustments (consisting of only normal recurring items) necessary to summarize fairly the Company's financial position at January 31, 2001and the results of operations and the cash flows for the three months ended January 31, 2001 and 2000.

The Company suggests that the unaudited Consolidated Condensed Financial Statements for the three months ended January 31, 2001 be read in conjunction with the Company's Annual Report for the year ended October 31, 2000.
**(2) Goodwill**
Other assets include unamortized goodwill of $5.5 and $3.5 million at January 31, 2001 and 2000 respectively. Goodwill resulted from the acquisition of certain assets of Waldon, Inc., by the Company's Mobile Products, Inc., subsidiary on September11, 2000 and the acquisition of Mid Bus on December 1, 1998. The acquisitions of certain assets of Waldon and Mid Bus were not material for providing pro forma disclosures of their operating results. The acquisitions were accounted for as purchases andthe result of operations have been consolidated with those of the Company since the date of acquisition. The excess cost over the fair value of net assets acquired is being amortized on a straight-line basis over 15 years for Mobile Products, Inc. and 20years for Mid Bus. Goodwill amortization reflected in the consolidated statements of income, totaled $80,775 and $43,130 for the three months ended January 31, 2001 and 2000 respectively. 

The Company continually evaluates whether later events and circumstances have occurred that indicate the remaining estimated useful life of goodwill may warrant revisions or that the remaining balance of goodwill may not be recoverable. When factorsindicate that the goodwill should be evaluated for possible impairment, the Company uses an estimate of undiscounted cash flows over the remaining life of the goodwill in measuring whether the goodwill is recoverable.
**(3) Revenue Recognition**
The Company records vehicle sales, and passes title to the customer, at the earlier of completion of the vehicle and receipt of full payment or shipment or delivery to the customer as specified by the customer purchase order. Customer deposits forpartial payment of vehicles are deferred and treated as current liabilities until the vehicle is completed and recognized as revenue.
**(4) Inventories**
Inventories, which include material, labor, and manufacturing overhead, are stated at the lower of cost (FIFO) or market.

Major classes of inventories as of January 31, 2001 and October 31, 2000, consisted of the following:

 
January 31, 2001
October 31, 2000
Chassis
$10,718,496
$10,822,015
Raw materials & components
15,049,217
13,325,241
Work-in-process
6,814,317
7,941,310
Finished goods
14,272,222
9,322,224
 
$46,854,252
$41,410,790**(5) Earnings per Share

Dilutive securities, consisting of options to purchase the Company's common stock and restricted stock awards, are included in the calculation of diluted weighted average common shares; there were no dilutive securities for the three monthperiod ended January 31, 2001, and 325,808 shares for the three month period ended January 31, 2000.
**(6) Contingencies and Litigation**
At January 31, 2001, the Company had contingencies and litigation pending which arose in the ordinary course of business. Litigation is subject to many uncertainties and the outcome of the individual matters is not presently determinable. It ismanagement's opinion that this litigation would not result in liabilities that would have a material adverse effect on the Company's consolidated financial position.
**(7) Segment Information**

Three Months Ended
(In Thousands)
January 31,
 
2001
2000**Revenues from external customers: 
 
 
Ambulance
$19,553
$22,955
Buses
11,711
17,961
Terminal Trucks
9,035
8,797
Road Construction
2,146
- 
Consolidated Total
$42,445
$49,713
 
 
 **Pretax segment profit (loss):
 
 
Ambulance
$ (452)
$ 701
Buses
(112)
1,096
Terminal Trucks
589
630
Road Construction
(141)
-
Other
(862)
(869)
Consolidated Total
$ (978)
$ 1,558
 
 
 
 
As of
 
January 31,
October 31,
 
2001
2000**Segment assets:
 
 
Ambulance
$31,914
$30,583
Buses
23,996
24,137
Terminal Trucks
12,994
12,699
Road Construction
8,838
9,212
Other
3,590
4,391
Consolidated Total
$81,332
$81,022
 
 
 
Item 2 - Management's Discussion and Analysis of Financial Condition and Results of**************