UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
(Mark One)
For the quarterly period ended
or
For the transition period from _____ to _____
Commission File Number:
(Exact name of registrant as specified in its charter)
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incorporation or organization) |
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N/A
______________________________________________________
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class | Trading Symbol | Name of each exchange on which registered |
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. x
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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). x
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.
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Large accelerated filer ☐ |
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Non-accelerated filer ☐ |
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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 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). ¨ Yes
The number of outstanding shares of the registrant’s common stock, $1.00 par value, on October 31, 2020 was
INTRICON CORPORATION
I N D E X
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Financial Statements (Unaudited) |
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| Consolidated Condensed Balance Sheets as of September 30, 2020 and December 31, 2019 | 3 |
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Management's Discussion and Analysis of Financial Condition and Results of Operations | 25 | |
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PART I: FINANCIAL INFORMATION
ITEM 1. Financial Statements
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INTRICON CORPORATION | |||||
Consolidated Condensed Balance Sheets | |||||
(In Thousands, Except Share Amounts) | |||||
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(unaudited) |
| September 30, |
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| December 31, |
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| 2019 |
Current assets: |
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Cash and cash equivalents | $ | |
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Restricted cash |
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Short-term investment securities |
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Accounts receivable, less provision for doubtful accounts of $ |
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Inventories |
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Contract assets |
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Other current assets |
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Current assets of discontinued operations |
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Total current assets |
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Machinery and equipment |
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Less: Accumulated depreciation |
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Net machinery and equipment |
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Goodwill |
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Intangible assets |
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Operating lease right-of-use assets, net |
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Investment in partnerships |
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Long-term investment securities |
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Other assets, net |
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Total assets | $ | |
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Current liabilities: |
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Current financing leases | $ | |
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Current operating leases |
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Accounts payable |
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Accrued salaries, wages and commissions |
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Other accrued liabilities |
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Liabilities of discontinued operations |
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Total current liabilities |
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Noncurrent financing leases |
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Noncurrent operating leases |
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Other postretirement benefit obligations |
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Accrued pension liabilities |
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Deferred tax liabilities, net |
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Other long-term liabilities |
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Total liabilities |
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Commitments and contingencies (Note 18) |
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Shareholders’ equity: |
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Common stock, $ |
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Additional paid-in capital |
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Accumulated deficit |
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Accumulated other comprehensive loss |
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Total shareholders' equity |
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Non-controlling interest |
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Total equity |
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Total liabilities and equity | $ | |
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(See accompanying notes to the consolidated condensed financial statements) |
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INTRICON CORPORATION | ||||||||||||
Consolidated Condensed Statements of Operations | ||||||||||||
(In Thousands, Except Per Share Amounts) | ||||||||||||
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| Three Months Ended |
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| Nine Months Ended |
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(unaudited) |
| September 30, |
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| September 30, |
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| September 30, |
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| September 30, |
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Revenue, net | $ | |
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Cost of goods sold |
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Gross profit |
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Operating expenses: |
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Sales and marketing |
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General and administrative |
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Research and development |
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Restructuring charges |
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Impairment loss |
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Other operating expenses |
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Total operating expenses |
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Operating income (loss) |
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Interest income, net |
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Other income (expense), net |
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Income (loss) from continuing operations before income taxes and discontinued operations |
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Income tax expense |
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Income (loss) from continuing operations before discontinued operations |
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Loss on disposal of discontinued operations (Note 5) |
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Loss from discontinued operations (Note 5) |
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Net income (loss) |
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Less: Income allocated to non-controlling interest |
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Net income (loss) attributable to Intricon shareholders | $ | |
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Basic income (loss) per share attributable to Intricon shareholders: |
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Continuing operations | $ | |
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Discontinued operations |
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Net income (loss) per share: | $ | |
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Diluted income (loss) per share attributable to Intricon shareholders: |
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Continuing operations | $ | |
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Discontinued operations |
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Net income (loss) per share: | $ | |
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Average shares outstanding: |
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Basic |
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Diluted |
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(See accompanying notes to the consolidated condensed financial statements) |
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INTRICON CORPORATION | ||||||||||||
Consolidated Condensed Statements of Comprehensive Income (Loss) | ||||||||||||
(In Thousands) | ||||||||||||
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| Three Months Ended |
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| Nine Months Ended |
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(unaudited) |
| September 30, |
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| September 30, |
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| September 30, |
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| September 30, |
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| 2020 |
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Net income (loss) | $ | |
| $ | ( |
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Realized foreign currency translation loss from discontinued operations previously unrealized, net of taxes of $ |
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Unrealized foreign currency translation adjustment from continuing operations, net of taxes of $ |
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Investment in partnerships, net of taxes of $ |
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Pension and postretirement obligations, net of taxes of $ |
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Comprehensive income (loss) | $ | |
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(See accompanying notes to the consolidated condensed financial statements) |
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INTRICON CORPORATION | |||||
Consolidated Condensed Statements of Cash Flows | |||||
(In Thousands) | |||||
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| Nine Months Ended | |||
(unaudited) |
| September 30, |
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| September 30, |
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Cash flows from operating activities: |
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Net loss | $ | ( |
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Loss from discontinued operations |
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Loss from continuing operations |
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Adjustments to reconcile net loss from continuing operations to net cash provided by operating activities: |
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Depreciation and amortization |
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Equity in loss of partnerships |
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Stock-based compensation |
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Change in fair value of contingent consideration |
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Provision for doubtful accounts |
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Loss on disposal of assets |
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Impairment loss |
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Changes in operating assets and liabilities: |
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Accounts receivable |
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Inventories |
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Contract assets |
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Other assets |
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Accounts payable |
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