SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) OCTOBER 28, 2002
MEASUREMENT SPECIALTIES, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
NEW JERSEY 001-11906 22-2378738
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(STATE OR OTHER JURISDICTION OF INCORPORATION) (COMMISSION FILE NUMBER) (IRS EMPLOYER
IDENTIFICATION NO.)
710 ROUTE 46 EAST, SUITE 206 07004
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(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE (973) 808-3020
80 LITTLE FALLS ROAD, FAIRFIELD, NEW JERSEY 07004
(FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)
ITEM 5. OTHER EVENTS.
As described in our Annual Report on Form 10-K for the fiscal year ended
March 31, 2002 (the "2002 Annual Report") and our Quarterly Reports on Form 10-Q
for the three months ended June 30, 2002 (the "First Quarter 10-Q") and the
three months ended September 30, 2002 (the "Second Quarter 10-Q"), we have
restated (i) our previously issued financial statements for the fiscal year
ended March 31, 2001, and (ii) our previously issued financial results for each
of the quarterly periods in the fiscal year ended March 31, 2001 and the first
three quarters in the fiscal year ended March 31, 2002.
This Current Report on Form 8-K provides restated key financial
information (unaudited) for each of the quarterly periods in the fiscal year
ended March 31, 2001 and the first three quarters in the fiscal year ended March
31, 2002. This restated financial information is now the historical financial
information of Measurement Specialties and supersedes the historical financial
information included in our Quarterly Reports on Form 10-Q for each of the
quarters in the fiscal year ended March 31, 2001 and the first three quarters in
the fiscal year ended March 31, 2002.
The restated consolidated financial information for the quarterly periods
in the fiscal year ended March 31, 2001 reflects the following adjustments:
- Correction of errors in our valuations of inventory and costs of sales;
- Reclassification of certain promotional costs from selling, general and
administrative to a reduction in revenue;
- Acceleration of amortization of deferred financing costs relating to our
bank loan;
- Expensing of unallocated acquisition costs;
- Straight-lining of lease expense in accordance with Statement of
Financial Accounting Standards No. 13 "Accounting for Leases";
- Recomputation of our tax provision; and
- Certain other adjustments.
The restated consolidated financial information for the first three
quarters in the fiscal year ended March 31, 2002 reflects adjustments related to
the correction of errors in our valuations of inventory and costs of sales.
This Form 8-K should be read in conjunction with, and is subject to the
more complete discussion of the restatement contained in, our other public
filings with the Securities and Exchange Commission, including the 2002 Annual
Report, First Quarter 10-Q and Second Quarter 10-Q.
QUARTERLY FINANCIAL INFORMATION
(UNAUDITED)
$ IN THOUSANDS EXCEPT PER SHARE AMOUNTS
2001
----
FIRST QUARTER SECOND QUARTER THIRD QUARTER FOURTH QUARTER YEAR ENDED
OPERATIONS: ENDED JUNE 30 ENDED SEPT. 30 ENDED DEC 31 ENDED MARCH 31 MARCH 31
----------- ------------- -------------- ------------ -------------- --------
AS RESTATED AS RESTATED AS RESTATED
Net sales $ 15,991 $ 28,062 $ 33,837 $ 24,085 $ 101,975
Cost of goods sold 10,785 16,588 24,351 15,214 66,938
----------- ----------- ----------- ----------- -----------
Gross profit 5,206 11,474 9,486 8,871 35,037
----------- ----------- ----------- ----------- -----------
Operating expenses (income):
Selling, general and administrative 6,273 7,842 7,441 7,985 29,541
Research and development 1,198 1,035 1,286 1,563 5,082
Customer funding of research and development (775) (1,023) (608) (1,726) (4,132)
Goodwill and other impairments -- -- -- -- --
Restructuring and other cost -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total operating expenses 6,696 7,854 8,119 7,822 30,491
----------- ----------- ----------- ----------- -----------
Operating income (loss) (1,490) 3,620 1,367 1,049 4,546
Interest expense, net 213 266 975 1,180 2,634
Other (income) expense -- -- -- (293) (293)
----------- ----------- ----------- ----------- -----------
213 266 975 887 2,341
----------- ----------- ----------- ----------- -----------
Income (loss) before provision (benefit)
for income taxes and cumulative effect
of accounting change (1,703) 3,354 392 162 2,205
Provision (benefit) for income taxes 1,534 179 (705) 1,008
----------- ----------- ----------- ----------- -----------
Income (loss) before cumulative effect
of accounting change (1,703) 1,820 213 867 1,197
Cumulative effect of accounting change, net of taxes -- -- -- --
----------- ----------- ----------- ----------- -----------
Net income (loss) $ (1,703) $ 1,820 $ 213 $ 867 $ 1,197
=========== =========== =========== =========== ===========
Earnings (loss) per common share -
Basic Income (loss) before cumulative effect
of accounting change $ (0.43) $ 0.23 $ 0.03 $ 0.11 $ 0.15
Cumulative effect of accounting change -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Net income (loss) $ (0.43) $ 0.23 $ 0.03 $ 0.11 $ 0.15
=========== =========== =========== =========== ===========
Earnings (loss) per common share -
Diluted Income (loss) before cumulative
effect of accounting change $ (0.43) $ 0.20 $ 0.02 $ 0.10 $ 0.13
Cumulative effect of accounting change -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Net income (loss) $ (0.43) $ 0.20 $ 0.02 $ 0.10 $ 0.13
=========== =========== =========== =========== ===========
Weighted average number of common and
common equivalent shares outstanding:
Basic 3,994 8,034 8,256 7,873 8,144
=========== =========== =========== =========== ===========
Diluted 3,994 8,932 9,017 8,660 9,045
=========== =========== =========== =========== ===========
2002
----
FIRST QUARTER SECOND QUARTER THIRD QUARTER FOURTH QUARTER YEAR ENDED
OPERATIONS: ENDED JUNE 30 ENDED SEPT. 30 ENDED DEC 31 ENDED MARCH 31 MARCH 31
----------- -------------- -------------- ------------ -------------- --------
AS RESTATED AS RESTATED AS RESTATED
Net sales $ 25,658 $ 34,612 $ 42,658 $ 29,691 $ 132,619
Cost of goods sold 19,153 26,877 31,184 20,397 97,611
----------- ----------- ----------- ----------- -----------
Gross profit 6,505 7,735 11,474 9,294 35,008
----------- ----------- ----------- ----------- -----------
Operating expenses (income):
Selling, general and administrative 7,011 10,997 10,189 16,267 44,464
Research and development 1,259 2,021 1,649 1,662 6,591
Customer funding of research and development (443) (456) (439) (446) (1,784)
Goodwill and other impairments -- -- 779 6,700 7,479
Restructuring and other cost -- -- -- 1,413 1,413
----------- ----------- ----------- ----------- -----------
Total operating expenses 7,827 12,562 12,178 25,596 58,163
----------- ----------- ----------- ----------- -----------
Operating income (loss) (1,322) (4,827) (704) (16,302) (23,155)
Interest expense, net 1,002 978 670 31 2,681
Other (income) expense (16) 58 616 (217) 441
----------- ----------- ----------- ----------- -----------
986 1,036 1,286 (186) 3,122
----------- ----------- ----------- ----------- -----------
Income (loss) before provision (benefit)
for income taxes and cumulative effect
of accounting change (2,308) (5,863) (1,990) (16,116) (26,277)
Provision (benefit) for income taxes (11) (28) (10) 2,571 2,522
----------- ----------- ----------- ----------- -----------
Income (loss) before cumulative effect
of accounting change (2,297) (5,835) (1,980) (18,687) (28,799)
Cumulative effect of accounting change, net of taxes (248) -- -- -- (248)
----------- ----------- ----------- ----------- -----------
Net income (loss) $ (2,545) $ (5,835) $ (1,980) $ (18,687) $ (29,047)
=========== =========== =========== =========== ===========
Earnings (loss) per common share -
Basic Income (loss) before cumulative effect
of accounting change $ (0.27) $ (0.57) $ (0.17) $ (1.57) $ (2.74)
Cumulative effect of accounting change (0.03) -- -- -- (0.02)
----------- ----------- ----------- ----------- -----------
Net income (loss) $ (0.30) $ (0.57) $ (0.17) $ (1.57) $ (2.76)
=========== =========== =========== =========== ===========
Earnings (loss) per common share -
Diluted Income (loss) before cumulative
effect of accounting change $ (0.27) $ (0.57) $ (0.17) $ (1.57) $ (2.74)
Cumulative effect of accounting change (0.03) -- -- -- (0.02)
----------- ----------- ----------- ----------- -----------
Net income (loss) $ (0.30) $ (0.57) $ (0.17) $ (1.57) $ (2.76)
=========== =========== =========== =========== ===========
Weighted average number of common and
common equivalent shares outstanding:
Basic 8,423 10,272 11,562 11,879 10,531
=========== =========== =========== =========== ===========
Diluted 8,423 10,272 11,562 11,879 10,531
=========== =========== =========== =========== ===========
QUARTERLY FINANCIAL INFORMATION
(UNAUDITED)
$ IN THOUSANDS EXCEPT PER SHARE AMOUNTS
FIRST QUARTER SECOND QUARTER THIRD QUARTER FIRST QUARTER
CONDENSED FINANCIAL POSITION: JUNE 30 2000 SEPT. 30, 2000 DEC. 31, 2000 MARCH 31, 2001 JUNE 30 2001
----------------------------- ------------ -------------- ------------- -------------- ------------
AS RESTATED AS RESTATED AS RESTATED AS RESTATED
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 622 $ 1,496 $ 1,203 $ 593 $ 528
Accounts receivable, trade, net 9,763 19,407 18,766 14,902 16,045
Inventories 9,282 17,426 18,184 24,362 24,099
Prepaid expenses and other current assets 2,157 4,234 3,441 3,266 3,406
----------- ----------- ----------- ----------- -----------
Total current assets 21,824 42,563 41,594 43,123 44,078
----------- ----------- ----------- ----------- -----------
PROPERTY AND EQUIPMENT, NET 9,533 13,609 15,310 17,069 18,333
----------- ----------- ----------- ----------- -----------
OTHER ASSETS:
Goodwill, net 5,483 11,688 11,460 11,412 11,412
Trademarks -- -- -- -- --
Other assets 3,268 5,361 6,165 5,875 6,250
----------- ----------- ----------- ----------- -----------
8,751 17,049 17,625 17,287 17,662
----------- ----------- ----------- ----------- -----------
$ 40,108 $ 73,221 $ 74,529 $ 77,479 $ 80,073
=========== =========== =========== =========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long term debt $ 11,975 $ 34,068 $ 33,605 $ 36,736 $ 38,482
Accounts payable 7,057 13,634 14,827 13,713 18,220
Accrued expenses and other current liabilities 6,995 8,809 9,183 8,132 6,725
----------- ----------- ----------- ----------- -----------
Total current liabilities 26,027 56,511 57,615 58,581 63,427
----------- ----------- ----------- ----------- -----------
OTHER LIABILITIES:
Long term debt, net of current portion -- -- -- -- --
Other liabilities 876 1,105 1,065 1,181 1,247
----------- ----------- ----------- ----------- -----------
876 1,105 1,065 1,181 1,247
----------- ----------- ----------- ----------- -----------
Total liabilities 26,903 57,616 58,680 59,762 64,674
----------- ----------- ----------- ----------- -----------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Serial preferred stock; -- --
Common stock, no par 5,502 5,502 5,502 5,502 5,502
Additional paid-in capital 2,143 2,723 2,754 3,769 3,980
Accumulated (deficit) retained earnings 5,561 7,381 7,594 8,461 5,916
Other comprehensive loss (1) (1) (1) (15) 1
----------- ----------- ----------- ----------- -----------
Total shareholders' equity 13,205 15,605 15,849 17,717 15,399
----------- ----------- ----------- ----------- -----------
$ 40,108 $ 73,221 $ 74,529 $ 77,479 $ 80,073
=========== =========== =========== =========== ===========
SECOND QUARTER THIRD QUARTER
CONDENSED FINANCIAL POSITION: SEPT. 30, 2001 DEC. 31, 2001 MARCH 31, 2002
----------------------------- --------------- ------------- --------------
AS RESTATED AS RESTATED
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,295 $ 1,114 $ 4,542
Accounts receivable, trade, net 26,384 28,175 19,914
Inventories 31,894 27,726 22,969
Prepaid expenses and other current assets 8,327 12,628 3,623
----------- ----------- -----------
Total current assets 67,900 69,643 51,048
----------- ----------- -----------
PROPERTY AND EQUIPMENT, NET 20,856 20,861 18,345
----------- ----------- -----------
OTHER ASSETS:
Goodwill, net 14,707 14,707 8,265
Trademarks 9,989 9,930 9,549
Other assets 1,347 1,327 2,405
----------- ----------- -----------
26,043 25,964 20,219
----------- ----------- -----------
$ 114,799 $ 116,468 $ 89,612
=========== =========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long term debt $ 35,864 $ 37,171 $ 32,758
Accounts payable 20,868 19,809 19,252
Accrued expenses and other current liabilities 9,449 11,181 9,357
----------- ----------- -----------
Total current liabilities 66,181 68,161 61,367
----------- ----------- -----------
OTHER LIABILITIES:
Long term debt, net of current portion -- -- 249
Other liabilities 1,181 861 1,169
----------- ----------- -----------
1,181 861 1,418
----------- ----------- -----------
Total liabilities 67,362 69,022 62,785
----------- ----------- -----------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Serial preferred stock;
Common stock, no par 5,502 5,502 5,502
Additional paid-in capital 41,863 43,872 42,346
Accumulated (deficit) retained earnings 81 (1,899) (20,586)
Other comprehensive loss (9) (29) (435)
----------- ----------- -----------
Total shareholders' equity 47,437 47,446 26,827
----------- ----------- -----------
$ 114,799 $ 116,468 $ 89,612
=========== =========== ===========
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
MEASUREMENT SPECIALTIES, INC.
Date: December 12, 2002 By: /s/ John P. Hopkins
---------------------------------
John P. Hopkins
Chief Financial Officer