XASE:WMCO Quarterly Report 10-Q Filing - 6/30/2012

Effective Date 6/30/2012

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 10-Q

 

 

 S QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended: June 30, 2012

 

£ 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 0-18083

 

 

Williams Controls, Inc.

(Exact name of registrant as specified in its charter)

 

 

Delaware

 

84-1099587

 
 

(State or other jurisdiction of

 

(I.R.S. Employer

 
 

incorporation or organization)

 

Identification No.)

 
         
 

14100 SW 72nd Avenue,

     
 

Portland, Oregon

 

97224

 
 

(Address of principal executive office)

 

(zip code)

 

 

(503) 684-8600

(Registrant's telephone number, including area code)

 

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 S  No £

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes S No £

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act

 

 

Large accelerated filer £

 

Accelerated filer £

 

 

 

 

 

Non-accelerated filer £

 

Smaller reporting company S

 

1
 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)

Yes £ No S

 

The number of shares outstanding of the registrant's common stock

as of July 31, 2012: 7,379,712

 

2
 

Williams Controls, Inc.

 

June 30, 2012

 

Table of Contents

 

 

 

   
 

Page

Number

Part I.  Financial Information  
   
      Item 1. Financial Statements (unaudited)  
   

Condensed Consolidated Balance Sheets, June 30, 2012 and

September 30, 2011

4
   

Condensed Consolidated Statements of Income, three and nine months

ended June 30, 2012 and 2011

5

   

Condensed Consolidated Statements of Comprehensive Income, three and nine months

ended June 30, 2012 and 2011

6
   

Condensed Consolidated Statements of Cash Flows, nine months

ended June 30, 2012 and 2011

7
   

Notes to Unaudited Condensed Consolidated Financial Statements

8

   
      Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 15
   
      Item 3.  Quantitative and Qualitative Disclosures About Market Risk 21
   
      Item 4.  Controls and Procedures 21
   
Part II.  Other Information  
   
      Item 1.    Legal Proceedings 23
   
      Item 1A.  Risk Factors 23
   
      Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds 23
   
      Item 3.    Defaults Upon Senior Securities 23
   
      Item 4.    Mine Safety Disclosures 23
   
      Item 5.    Other Information 23
   
      Item 6.    Exhibits 24
   
      Signature Page 25
   

 

 

 

 

3
 

PART I – FINANCIAL INFORMATION

 

Item 1. Financial Statements

Williams Controls, Inc.

Condensed Consolidated Balance Sheets

(Dollars in thousands, except share and per share information)

(Unaudited)

 

       
   June 30,
2012
  September 30,
2011
ASSETS          
Current Assets:          
  Cash and cash equivalents  $2,577   $1,339 
  Trade accounts receivable, net   10,397    10,561 
  Other accounts receivable   657    944 
  Inventories   8,940    11,334 
  Deferred income taxes   847    847 
  Prepaid expenses and other current assets   556    552 
     Total current assets   23,974    25,577 
           
Property, plant and equipment, net   8,708    9,446 
Deferred income taxes   3,061    3,181 
Other assets, net   317    337 
     Total assets  $36,060   $38,541 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Current Liabilities:          
  Revolving loan facility  $908   $1,575 
  Accounts payable   4,557    5,599 
  Accrued expenses   4,798    5,536 
  Current portion of employee benefit obligations   201    201 
     Total current liabilities   10,464    12,911 
           
Long-term Liabilities:          
  Employee benefit obligations   7,287    8,069 
  Other long-term liabilities   134    126 
           
Commitments and contingencies          
           
Stockholders’ Equity:          
Preferred Stock ($.01 par value, 50,000,000 authorized) Series C
(No shares were issued and outstanding at June 30, 2012 and September 30, 2011)
   —      —   
Common stock ($.01 par value, 12,500,000 authorized; 7,341,659 and 7,302,339 issued and outstanding at June 30, 2012 and September 30, 2011, respectively)   73    73 
  Additional paid-in capital   39,019    38,521 
  Accumulated deficit   (11,024)   (11,108)
  Treasury stock (332,593 shares at June 30, 2012 and September 30, 2011)   (2,734)   (2,734)
  Accumulated other comprehensive loss   (7,159)   (7,317)
     Total stockholders’ equity   18,175    17,435 
     Total liabilities and stockholders’ equity  $36,060   $38,541 

 

 

See accompanying notes to Unaudited Condensed Consolidated Financial Statements.

4
 

Williams Controls, Inc.

Condensed Consolidated Statements of Income

(Dollars in thousands, except share and per share information)

(Unaudited)

 

   Three Months Ended
June 30,
  Nine Months Ended
June 30,
   2012   2011   2012   2011 
Net sales  $16,382   $16,767   $48,722   $45,102 
Cost of sales   11,517    11,099    33,972    30,692 
 
Gross profit
   4,865    5,668    14,750    14,410 
 
Operating expenses:
   

 

 

    

 

 

           
  Research and development   1,048    1,318    3,445    3,688 
  Selling   760    704    2,230    2,080 
  Administration   1,445    1,412    4,119    5,034 
     Total operating expenses   3,253    3,434    9,794    10,802 
 
Operating income
   1,612    2,234    4,956    3,608 
                     
Other expenses:                    
  Interest expense, net   28    23    101    47 
  Other expense, net   111    28    219    69 
     Total other expenses   139    51    320    116 
 
Income before income taxes
   1,473    2,183    4,636    3,492 
Income tax expense   628    677    1,883    1,119 
 
Net income
  $845   $1,506   $2,753   $2,373 
 
Net income per common share – basic
  $0.11   $0.20   $0.37   $0.32 
Weighted average shares used in per share
    calculation – basic
   7,338,423    7,300,277    7,321,202    7,294,519 
 
Net income per common share – diluted
  $0.11   $0.20   $0.36   $0.32 
Weighted average shares used in per share
    calculation – diluted
   7,517,291    7,503,313    7,511,933    7,469,173 
 
Cash dividends per share
  $0.12   $0.12   $0.36   $0.12 

 

 

 

See accompanying notes to Unaudited Condensed Consolidated Financial Statements.

 

5
 

Williams Controls, Inc.

Condensed Consolidated Statements of Comprehensive Income

(Dollars in thousands)

(Unaudited)

 

 

   Three Months Ended
June 30,
  Nine Months Ended
June 30,
   2012   2011   2012   2011 
Net income  $845   $1,506   $2,753   $2,373 
Change in pension liability adjustment, net of tax of ($21) and ($62) for the three and nine months ended June 30, 2012, respectively   35    —      106    —   
Foreign currency translation adjustments, net of tax of ($5) and ($21) for the three and nine months ended June 30, 2012, respectively   —      98    52    175 
 
Comprehensive income
  $880   $1,604   $2,911   $2,548 

 

 

See accompanying notes to Unaudited Condensed Consolidated Financial Statements.

 

 

6
 

Williams Controls, Inc.

Condensed Consolidated Statements of Cash Flows

(Dollars in thousands)

(Unaudited)

 

 

   Nine Months Ended
June 30,
   2012  2011
Cash flows from operating activities:          
  Net income  $2,753   $2,373 
Adjustments to reconcile net income to net cash provided by
operating activities:
          
     Depreciation and amortization   1,588    1,707 
     Stock-based compensation   550    635 
  Changes in operating assets and liabilities          
     Receivables, net   451    (1,854)
     Inventories   2,394    (3,125)
     Prepaid expenses and other current assets   (4)   (346)
     Accounts payable and accrued expenses   (1,844)   1,000 
     Other   (384)   (185)
Net cash provided by operating activities   5,504    205 
 
Cash flows from investing activities:
          
  Purchases of property, plant and equipment   (958)   (2,243)
Net cash used in investing activities   (958)   (2,243)
 
Cash flows from financing activities:
          
  Borrowings on revolving loan facility   12,905    7,682 
  Payments on revolving loan facility   (13,572)   (6,800)
  Cash dividend on common stock   (2,669)   (882)
  Net proceeds from exercise of stock options   28    29 
Net cash provided by (used in) financing activities   (3,308)   29 
 
Net increase (decrease) in cash and cash equivalents
   1,238    (2,009)
Cash and cash equivalents at beginning of period   1,339    3,016 
 
Cash and cash equivalents at end of period
  $2,577   $1,007 
 
Supplemental disclosure of cash flow information:
          
  Income taxes paid  $2,200   $841 
  Interest paid  $30   $32 

 

See accompanying notes to Unaudited Condensed Consolidated Financial Statements.

 

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