It
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended February 28, 2019
Commission File Number: 1-9852
CHASE CORPORATION
(Exact name of registrant as specified in its charter)
|
Massachusetts |
|
11-1797126 |
|
(State or other jurisdiction of incorporation |
|
(I.R.S. Employer Identification No.) |
295 University Avenue, Westwood, Massachusetts 02090
(Address of Principal Executive Offices, Including Zip Code)
(781) 332-0700
(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, and (2) has been subject to such filing requirements for the past 90 days. YES ☒ NO ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§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 ☒ NO ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
|
Large accelerated filer ☐ |
Accelerated filer ☒ |
|
Non-accelerated filer ☐ |
Smaller reporting company ☐ |
|
Emerging growth company ☐ |
|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐
Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ☐ NO ☒
The number of shares of Common Stock outstanding as of March 31, 2019 was 9,412,323
CHASE CORPORATION
For the Quarter Ended February 28, 2019
2
Cautionary Note Concerning Forward-Looking Statements
This Quarterly Report on Form 10-Q contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements, including without limitation forward-looking statements made under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” involve risks and uncertainties. Any statements contained in this Quarterly Report that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements include, without limitation, statements as to our future operating results; seasonality expectations; plans for the development, utilization or disposal of manufacturing facilities; future economic conditions; our expectations as to legal proceedings; the effect of our market and product development efforts; and expectations or plans relating to the implementation or realization of our strategic goals and future growth, including through potential future acquisitions. Forward-looking statements may also include, among other things, statements relating to future sales, earnings, cash flow, results of operations, use of cash and other measures of financial performance, as well as statements relating to future dividend payments. Other forward-looking statements may be identified through the use of words such as “believes,” “anticipates,” “may,” “should,” “will,” “plans,” “projects,” “expects,” “expectations,” “estimates,” “predicts,” “targets,” “forecasts,” “strategy,” and other words of similar meaning in connection with the discussion of future operating or financial performance. These statements are based on current expectations, estimates and projections about the industries in which we operate, and the beliefs and assumptions made by management. Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and changes in circumstances that are difficult to predict. Accordingly, the Company’s actual results may differ materially from those contemplated by the forward-looking statements. Investors, therefore, are cautioned against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Readers should refer to the discussions under “Risk Factors” contained in our Annual Report on Form 10-K for the fiscal year ended August 31, 2018 concerning certain factors that could cause our actual results to differ materially from the results anticipated in such forward-looking statements. These Risk Factors are hereby incorporated by reference into this Quarterly Report.
3
Item 1 — Unaudited Condensed Consolidated Financial Statements
CHASE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
In thousands, except share and per share amounts
|
|
|
February 28, |
|
August 31, |
|
||
|
|
|
2019 |
|
2018 |
|
||
|
ASSETS |
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
25,088 |
|
$ |
34,828 |
|
|
Accounts receivable, less allowance for doubtful accounts of $550 and $559 |
|
|
41,699 |
|
|
44,610 |
|
|
Inventory |
|
|
45,418 |
|
|
39,699 |
|
|
Prepaid expenses and other current assets |
|
|
4,488 |
|
|
2,595 |
|
|
Due from sale of businesses |
|
|
— |
|
|
400 |
|
|
Prepaid income taxes |
|
|
2,556 |
|
|
4,100 |
|
|
Total current assets |
|
|
119,249 |
|
|
126,232 |
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, less accumulated depreciation of $51,525 and $49,212 |
|
|
31,686 |
|
|
32,845 |
|
|
|
|
|
|
|
|
|
|
|
Other Assets |
|
|
|
|
|
|
|
|
Goodwill |
|
|
82,334 |
|
|
84,696 |
|
|
Intangible assets, less accumulated amortization of $60,439 and $54,039 |
|
|
59,152 |
|
|
65,330 |
|
|
Cash surrender value of life insurance |
|
|
4,530 |
|
|
4,530 |
|
|
Restricted investments |
|
|
1,118 |
|
|
1,090 |
|
|
Funded pension plan |
|
|
241 |
|
|
301 |
|
|
Deferred income taxes |
|
|
1,736 |
|
|
1,347 |
|
|
Other assets |
|
|
77 |
|
|
98 |
|
|
Total assets |
|
$ |
300,123 |
|
$ |
316,469 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
14,991 |
|
$ |
17,810 |
|
|
Accrued payroll and other compensation |
|
|
4,239 |
|
|
6,639 |
|
|
Accrued expenses |
|
|
4,238 |
|
|
4,486 |
|
|
Total current liabilities |
|
|
23,468 |
|
|
28,935 |
|
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
6,000 |
|
|
25,000 |
|
|
Deferred compensation |
|
|
1,132 |
|
|
1,105 |
|
|
Accumulated pension obligation |
|
|
10,173 |
|
|
10,736 |
|
|
Other liabilities |
|
|
333 |
|
|
283 |
|
|
Accrued income taxes |
|
|
3,382 |
|
|
3,654 |
|
|
|
|
|
|
|
|
|
|
|
Commitments and Contingencies (Note 10) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
First Serial Preferred Stock, $1.00 par value: Authorized 100,000 shares; none issued |
|
|
— |
|
|
— |
|
|
Common stock, $.10 par value: Authorized 20,000,000 shares; 9,412,323 shares at February 28, 2019 and 9,396,947 shares at August 31, 2018 issued and outstanding |
|
|
941 |
|
|
939 |
|
|
Additional paid-in capital |
|
|
14,328 |
|
|
13,104 |
|
|
Accumulated other comprehensive loss |
|
|
(11,279) |
|
|
(12,336) |
|
|
Retained earnings |
|
|
251,645 |
|
|
245,049 |
|
|
Total equity |
|
|
255,635 |
|
|
246,756 |
|
|
Total liabilities and equity |
|
$ |
300,123 |
|
$ |
316,469 |
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed consolidated financial statements
4
CHASE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
In thousands, except share and per share amounts
|
|
|
Three Months Ended February 28, |
|
|
Six Months Ended February 28, |
|
|
||||||||
|
|
|
2019 |
|
2018 |
|
|
2019 |
|
2018 |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
65,442 |
|
$ |
64,735 |
|
|
$ |
136,806 |
|
$ |
125,312 |
|
|
|
Royalties and commissions |
|
|
1,189 |
|
|
1,140 |
|
|
|
2,328 |
|
|
2,480 |
|
|
|
|
|
|
66,631 |
|
|
65,875 |
|
|
|
139,134 |
|
|
127,792 |
|
|
|
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products and services sold |
|
|
43,213 |
|
|
41,991 |
|
|
|
89,788 |
|
|
78,886 |
|
|
|
Selling, general and administrative expenses |
|
|
13,086 |
|
|
11,975 |
|
|
|
26,448 |
|
|
23,871 |
|
|
|
Loss on impairment of goodwill (Note 7) |
|
|
2,410 |
|
|
— |
|
|
|
2,410 |
|
|
— |
|
|
|
Exit costs related to idle facility (Note 15) |
|
|
— |
|
|
— |
|
|
|
260 |
|
|
— |
|
|
|
Acquisition-related costs (Note 14) |
|
|
— |
|
|
393 |
|
|
|
— |
|
|
393 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
7,922 |
|
|
11,516 |
|
|
|
20,228 |
|
|
24,642 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(162) |
|
|
(440) |
|
|
|
(366) |
|
|
(485) |
|
|
|
Gain on sale of license (Note 17) |
|
|
— |
|
|
1,085 |
|
|
|
— |
|
|
1,085 |
|
|
|
Other income (expense) |
|
|
(828) |
|
|
(421) |
|
|
|
(1,122) |
|
|
(903) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
6,932 |
|
|
11,740 |
|
|
|
18,740 |
|
|
24,339 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes (Note 18) |
|
|
1,659 |
|
|
1,618 |
|
|
|
4,644 |
|
|
5,902 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
5,273 |
|
$ |
10,122 |
|
|
$ |
14,096 |
|
$ |
18,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders, per common and common equivalent share (Note 4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.56 |
|
$ |
1.08 |
|
|
$ |
1.50 |
|
$ |
1.97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
0.56 |
|
$ |
1.07 |
|
|
$ |
1.49 |
|
$ |
1.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
9,332,288 |
|
|
9,289,372 |
|
|
|
9,330,929 |
|
|
9,285,604 |
|
|
|
Diluted |
|
|
9,373,030 |
|
|
9,329,308 |
|
|
|
9,377,167 |
|
|
9,356,847 |
|
|
See accompanying notes to the condensed consolidated financial statements
5
CHASE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
In thousands, except share and per share amounts
|
|
|
Three Months Ended February 28, |
|
Six Months Ended February 28, |
|
|
||||||||
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
||||
|
Net income |
|
$ |
5,273 |
|
$ |
10,122 |
|
$ |
14,096 |
|
$ |
18,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized (loss) gain on restricted investments, net of tax |
|
|
13 |
|
|
(49) |
|
|
(8) |
|
|
(18) |
|
|
|
Change in funded status of pension plans, net of tax |
|
|
291 |
|
|
105 |
|
|
527 |
|
|
185 |
|
|
|
Foreign currency translation adjustment |
|
|
1,144 |
|
|
2,100 |
|
|
538 |
|
|
3,670 |
|
|
|
Total other comprehensive income (loss) |
|
|
1,448 |
|
|
2,156 |
|
|
1,057 |
|
|
3,837 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income |
|
$ |
6,721 |
|
$ |
12,278 |
|
$ |
15,153 |
|
$ |
22,274 |
|
|
See accompanying notes to the condensed consolidated financial statements
6
CHASE CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF EQUITY
THREE MONTHS ENDED FEBRUARY 28, 2019 AND 2018
(UNAUDITED)
In thousands, except share and per share amounts
|
|
|
|
|
|
|
|
Additional |
|
Accumulated Other |
|
|
|
|
Total |
|||
|
|
|
Common Stock |
|
Paid-In |
|
Comprehensive |
|
Retained |
|
Stockholders' |
|||||||
|
|
|
Shares |
|
Amount |
|
Capital |
|
Income (Loss) |
|
Earnings |
|
Equity |
|||||
|
Balance at November 30, 2017 |
|
9,374,840 |
|
$ |
937 |
|
$ |
14,734 |
|
$ |
(11,788) |
|
$ |
210,221 |
|
$ |
214,104 |
|
Restricted stock grants, net of forfeitures |
|
2,779 |
|
|
1 |
|
|
(1) |
|
|
|
|
|
|
|
|
— |
|
Amortization of restricted stock grants |
|
|
|
|
|
|
|
385 |
|
|
|
|
|
|
|
|
385 |
|
Amortization of stock option grants |
|
|
|
|
|
|
|
111 |
|
|
|
|
|
|
|
|
111 |
|
Exercise of stock options |
|
34,021 |
|
|
3 |
|
|
438 |
|
|
|
|
|
|
|
|
441 |
|
Common stock received for payment of stock option exercises |
|
(4,091) |
|
|
(1) |
|
|
(441) |
|
|
|
|
|
|
|
|
(442) |
|
Common stock retained to pay statutory minimum withholding taxes on common stock |
|
(12,961) |
|
|
(1) |
|
|
(1,390) |
|
|
|
|
|
|
|
|
(1,391) |
|
Change in funded status of pension plans, net of tax $17 |
|
|
|
|
|
|
|
|
|
|
105 |
|
|
|
|
|
105 |
|
Foreign currency translation adjustment |
|
|
|
|
|
|
|
|
|
|
2,100 |
|
|
|
|
|
2,100 |
|
Net unrealized gain (loss) on restricted investments, net of tax ($22) |
|
|
|
|
|
|
|
|
|
|
(49) |
|
|
|
|
|
(49) |
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
10,122 |
|
|
10,122 |
|
Balance at February 28, 2018 |
|
9,394,588 |
|
$ |
939 |
|
$ |
13,836 |
|
$ |
(9,632) |
|
$ |
220,343 |
|
$ |
225,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at November 30, 2018 |
|
9,402,706 |
|
$ |
940 |
|
$ |
13,608 |
|
$ |
(12,727) |
|
$ |
246,372 |
|
$ |
248,193 |
|
Restricted stock grants, net of forfeitures |
|
4,599 |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
— |
|
Amortization of restricted stock grants |
|
|
|
|
|
|
|
415 |
|
|
|
|
|
|
|
|
415 |
|
Amortization of stock option grants |
|
|
|
|
|
|
|
124 |
|
|
|
|
|
|
|
|
124 |
|
Exercise of stock options |
|
5,018 |
|
|
1 |
|
|
181 |
|
|
|
|
|
|
|
|
182 |
|
Change in funded status of pension plans, net of tax $101 |
|
|
|
|
|
|
|
|
|
|
291 |
|
|
|
|
|
291 |
|
Foreign currency translation adjustment |
|
|
|
|
|
|
|
|
|
|
1,144 |
|
|
|
|
|
1,144 |
|
Net unrealized gain (loss) on restricted investments, net of tax $3 |
|
|
|
|
|
|
|
|
|
|
13 |
|
|
|
|
|
13 |
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
5,273 |
|
|
5,273 |
|
Balance at February 28, 2019 |
|
9,412,323 |
|
$ |
941 |
|
$ |
14,328 |
|
$ |
(11,279) |
|
$ |
251,645 |
|
$ |
255,635 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed consolidated financial statements
7
CHASE CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF EQUITY
SIX MONTHS ENDED FEBRUARY 28, 2019 AND 2018
(UNAUDITED)
In thousands, except share and per share amounts
|
|
|
|
|
|
|
|
Additional |
|
Accumulated Other |
|
|
|
|
Total |
|||
|
|
|
Common Stock |
|
Paid-In |
|
Comprehensive |
|
Retained |
|
Stockholders' |
|||||||
|
|
|
Shares |
|
Amount |
|
Capital |
|
Income (Loss) |
|
Earnings |
|
Equity |
|||||
|
Balance at August 31, 2017 |
|
9,354,136 |
|
$ |
935 |
|
$ |
14,060 |
|
$ |
(13,469) |
|
$ |
209,403 |
|
$ |
210,929 |
|
Restricted stock grants, net of forfeitures |
|
15,900 |
|
|
2 |
|
|
(2) |
|
|
|
|
|
|
|
|
— |
|
Amortization of restricted stock grants |
|
|
|
|
|
|
|
806 |
|
|
|
|
|
|
|
|
806 |
|
Amortization of stock option grants |
|
|
|
|
|
|
|
223 |
|
|
|
|
|
|
|
|
223 |
|
Exercise of stock options |
|
44,880 |
|
|
4 |
|
|
886 |
|
|
|
|
|
|
|
|
890 |
|
Common stock received for payment of stock option exercises |
|
(7,367) |
|
|
(1) |
|
|
(747) |
|
|
|
|
|
|
|
|
(748) |
|
Common stock retained to pay statutory minimum withholding taxes on common stock |
|
(12,961) |
|
|
(1) |
|
|
(1,390) |
|
|
|
|
|
|
|
|
(1,391) |
|
Cash dividend on common stock, $0.80 per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,497) |
|
|
(7,497) |
|
Change in funded status of pension plans, net of tax $59 |
|
|
|
|
|
|
|
|
|
|
185 |
|
|
|
|
|
185 |
|
Foreign currency translation adjustment |
|
|
|
|
|
|
|
|
|
|
3,670 |
|
|
|
|
|
3,670 |
|
Net unrealized gain (loss) on restricted investments, net of tax ($7) |
|
|
|
|
|
|
|
|
|
|
(18) |
|
|
|
|
|
(18) |
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
18,437 |
|
|
18,437 |
|
Balance at February 28, 2018 |
|
9,394,588 |
|
$ |
939 |
|
$ |
13,836 |
|
$ |
(9,632) |
|
$ |
220,343 |
|
$ |
225,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at August 31, 2018 |
|
9,396,947 |
|
$ |
939 |
|
$ |
13,104 |
|
$ |
(12,336) |
|
$ |
245,049 |
|
$ |
246,756 |
|
Restricted stock grants, net of forfeitures |
|
9,308 |
|
|
1 |
|
|
(1) |
|
|
|
|
|
|
|
|
— |
|
Amortization of restricted stock grants |
|
|
|
|
|
|
|
795 |
|
|
|
|
|
|
|
|
795 |
|
Amortization of stock option grants |
|
|
|
|
|
|
|
249 |
|
|
|
|
|
|
|
|
249 |
|
Exercise of stock options |
|
7,022 |
|
|
1 |
|
|
301 |
|
|
|
|
|
|
|
|
302 |
|
Common stock received for payment of stock option exercises |
|
(954) |
|
|
— |
|
|
(120) |
|
|
|
|
|
|
|
|
(120) |
|
Cash dividend on common stock, $0.80 per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,522) |
|
|
(7,522) |
|
Change in funded status of pension plans, net of tax $184 |
|
|
|
|
|
|
|
|
|
|
527 |
|
|
|
|
|
527 |
|
Foreign currency translation adjustment |
|
|
|
|
|
|
|
|
|
|
538 |
|
|
|
|
|
538 |
|
Net unrealized gain (loss) on restricted investments, net of tax ($4) |
|
|
|
|
|
|
|
|
|
|
(8) |
|
|
|
|
|
(8) |
|
Adoption of ASC 606 (Note 9) |
|
|
|
|
|
|
|
|
|
|
|
|
|
22 |
|
|
22 |
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
14,096 |
|
|
14,096 |
|
Balance at February 28, 2019 |
|
9,412,323 |
|
$ |
941 |
|
$ |
14,328 |
|
$ |
(11,279) |
|
$ |
251,645 |
|
$ |
255,635 |
See accompanying notes to the condensed consolidated financial statements
8
CHASE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
In thousands
|
|
|
|
Six Months Ended February 28, |
|
|
||||
|
|
|
|
2019 |
|
2018 |
|
|
||
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
$ |
14,096 |
|
$ |
18,437 |
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities |
|
|
|
|
|
|
|
|
|
|
Gain on sale of license |
|
|
|
— |
|
|
(1,085) |
|
|
|
Loss on impairment of goodwill |
|
|
|
2,410 |
|
|
— |
|
|
|
Depreciation |
|
|
|
2,491 |
|
|
2,618 |
|
|
|
Amortization |
|
|
|
6,225 |
|
|
5,233 |
|
|
|
Cost of sale of inventory step-up |
|
|
|
— |
|
|
1,530 |
|
|
|
(Recovery) provision of allowance for doubtful accounts |
|
|
|
(11) |
|
|
137 |
|
|
|
Stock-based compensation |
|
|
|
1,044 |
|
|
1,029 |
|
|
|
Realized loss (gain) on restricted investments |
|
|
|
4 |
|
|
(91) |
|
|
|
Pension curtailment and settlement loss |
|
|
|
473 |
|
|
— |
|
|
|
Deferred taxes |
|
|
|
(581) |
|
|
1,069 |
|
|
|
Increase (decrease) from changes in assets and liabilities |
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
|
3,003 |
|
|
179 |
|
|
|
Inventory |
|
|
|
(5,651) |
|
|
(3,222) |
|
|
|
Prepaid expenses and other assets |
|
|
|
(1,864) |
|
|
(601) |
|
|
|
Accounts payable |
|
|
|
(2,764) |
|
|
2,247 |
|
|
|
Accrued compensation and other expenses |
|
|
|
(2,847) |
|
|
(2,778) |
|
|
|
Accrued income taxes |
|
|
|
1,275 |
|
|
(4,718) |
|
|
|
Net cash provided by operating activities |
|
|
|
17,303 |
|
|
19,984 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
|
|
(1,304) |
|
|
(1,586) |
|
|
|
Cost to acquire intangible assets |
|
|
|
(30) |
|
|
(33) |
|
|
|
Payments for acquisitions |
|
|
|
— |
|
|
(71,434) |
|
|
|
Proceeds from sale of license |
|
|
|
— |
|
|
1,000 |
|
|
|
Proceeds from sale of businesses |
|
|
|
400 |
|
|
— |
|
|
|
Changes in restricted investments |
|
|
|
(41) |
|
|
61 |
|
|
|
Net cash used in investing activities |
|
|
|
(975) |
|
|
(71,992) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
Borrowings on debt |
|
|
|
— |
|
|
65,000 |
|
|
|
Payments of principal on debt |
|
|
|
(19,000) |
|
|
(10,000) |
|
|