UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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 March 31, 2002
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 2-44764
BALTEK CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 13-2646117
(State or other jurisdiction of incorporation (I.R.S. Employer
or organization) Identification No.)
10 Fairway Court, P.O. Box 195, Northvale, NJ 07647
(Address of principal executive offices) (Zip Code)
(201) 767-1400
(Registrant's telephone number, including area code)
--------------------------------------------------------------------------------
(Former name, former address and formal fiscal year, if changed since last
report)
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 [ X ] No [ ]
Common shares of stock outstanding as of May 10, 2002: 2,390,383 shares
BALTEK CORPORATION and subsidiaries
TABLE OF CONTENTS
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Page
PART I. FINANCIAL INFORMATION:
ITEM 1. FINANCIAL STATEMENTS:
Consolidated Balance Sheets as of March 31, 2002 and December 31, 2001.....1
Consolidated Statements of Income and Comprehensive Income
for the Three Months Ended March 31, 2002 and 2001.......................2
Consolidated Statements of Cash Flows for the Three Months
Ended March 31, 2002 and 2001............................................3
Notes to Consolidated Financial Statements.................................4
ITEM 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations..................................................7
ITEM 3. Quantitative and Qualitative Disclosures about Market Risk..........11
PART II. OTHER INFORMATION:
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.................................12
SIGNATURES................................................................13
BALTEK CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands, except per share data)
---------------------------------------------------------------------------------------------------------
March 31, December 31,
ASSETS 2002 2001
(Unaudited)
CURRENT ASSETS:
Cash $ 1,206 $ 573
Accounts receivable, net 7,985 7,860
Inventories 19,465 19,933
Prepaid expenses 640 708
Other 2,301 2,610
-------- --------
Total current assets 31,597 31,684
PROPERTY, PLANT AND EQUIPMENT, Net 13,075 13,129
TIMBER AND TIMBERLANDS 10,097 9,963
OTHER ASSETS 1,002 1,006
-------- --------
TOTAL ASSETS $ 55,771 $ 55,782
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable $ 9,000 $ 8,700
Accounts payable 2,243 2,431
Income tax payable 402 274
Accrued salaries, wages and bonuses payable 407 587
Accrued expenses and other liabilities 2,641 2,676
Current portion of long-term debt 108 113
Current portion of obligation under capital lease -- 82
-------- --------
Total current liabilities 14,801 14,863
LONG-TERM DEBT 278 302
UNION EMPLOYEE TERMINATION BENEFITS 226 210
-------- --------
Total liabilities 15,305 15,375
-------- --------
STOCKHOLDERS' EQUITY:
Preferred stock, $1.00 par; 5,000,000 shares authorized and unissued -- --
Common stock, $1.00 par; 10,000,000 shares authorized,
2,523,261 issued 2,523 2,523
Additional paid-in capital 2,157 2,157
Retained earnings 36,866 36,380
Accumulated other comprehensive loss (105) (147)
Treasury stock, at cost: 132,878 and 66,439 shares
at March 31, 2002 and December 31, 2001, respectively (975) (506)
-------- --------
Total stockholders' equity 40,466 40,407
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 55,771 $ 55,782
======== ========
See notes to consolidated financial statements.
-1-
BALTEK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME (UNAUDITED)
(Dollars in Thousands, except per share data)
---------------------------------------------------------------------------------
Three Months
Ended March 31,
2002 2001
NET SALES $ 16,082 $ 21,151
COST OF PRODUCTS SOLD 11,427 16,348
SELLING , GENERAL AND
ADMINISTRATIVE EXPENSES 3,723 3,995
----------- -----------
Operating income 932 808
----------- -----------
OTHER INCOME (EXPENSE):
Interest expense (173) (260)
Foreign exchange (loss) gain (46) 2
Other, net 2 (1)
----------- -----------
Total (217) (259)
----------- -----------
INCOME BEFORE INCOME TAXES 715 549
INCOME TAX PROVISION 229 203
----------- -----------
NET INCOME 486 346
OTHER COMPREHENSIVE INCOME (LOSS):
Cumulative effect of adopting SFAS No. 133 -- (16)
Change in fair value of interest rate swap 42 (2)
----------- -----------
COMPREHENSIVE INCOME $ 528 $ 328
=========== ===========
EARNINGS PER COMMON SHARE, BASIC
and DILUTED $ .20 $ .14
=========== ===========
AVERAGE SHARES OUTSTANDING 2,391,859 2,504,806
=========== ===========
See notes to consolidated financial statements.
-2-
BALTEK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in Thousands)
--------------------------------------------------------------------------------------------
Three Months
Ended March 31,
2002 2001
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 486 $ 346
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 740 741
Foreign exchange loss (gain) 46 (2)
Changes in assets and liabilities, net of the effect of
foreign currency translation:
Accounts receivable (124) (518)
Income taxes 128 (164)
Inventories 468 2,231
Prepaid expenses and other current assets 377 (590)
Other assets (10) 6
Accounts payable and accrued expenses (361) (1,164)
Other 14 29
------- -------
Net cash provided by operating activities 1,764 915
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Net acquisitions of property, plant and equipment (524) (712)
Increase in timber and timberlands (295) (312)
------- -------
Net cash used in investing activities (819) (1,024)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in notes payable, net 300 975
Payments of long-term debt (29) (13)
Principal payments under capital lease (82) (116)
Purchase of treasury stock (470) (506)
------- -------
Net cash (used in) provided by financing activities (281) 340
------- -------
EFFECT OF EXCHANGE RATE CHANGES ON CASH (31) (29)
------- -------
NET INCREASE IN CASH 633 202
CASH, BEGINNING OF PERIOD 573 1,338
------- -------
CASH, END OF PERIOD $ 1,206 $ 1,540
======= =======
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest $ 105 $ 195
======= =======
Income taxes $ 76 $ 445
======= =======
See notes to consolidated financial statements
-3-
BALTEK CORPORATION and subsidIaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
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1. BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements have been
prepared in accordance with accounting principles generally accepted in
the United States of America for interim financial information and
pursuant to the rules and regulations of the Securities and Exchange
Commission. Accordingly, they do not include all of the information and
footnotes required for complete financial statements. In the opinion of
management, all adjustments, including normal recurring accruals,
necessary for a fair presentation of the results of operations, financial
position and cash flows for the interim periods presented, have been
reflected herein. The results of operations for the interim periods are
not necessarily indicative of the results to be expected for the entire
year. The accompanying consolidated financial statements should be read in
conjunction with the accounting policies and notes to consolidated
financial statements included in the Company's 2001 Annual Report on Form
10-K.
2. INVENTORIES
Inventories are summarized as follows (amounts in thousands):
March 31, December 31,
2002 2001
Raw materials $ 8,915 $ 9,131
Work-in-process 5,397 4,844
Finished goods 5,153 5,958
------- -------
$19,465 $19,933
======= =======
3. SEGMENT INFORMATION
The Company and its subsidiaries operate in two segments, as a
manufacturer and supplier of core materials to various composite
industries and in the seafood business as a shrimp producer and, during
the first nine months of 2001, as a seafood importer. The segments are
managed and reported separately because of the difference in products they
produce and markets they serve. The Company evaluates performance based on
operating income, i.e., results of operations before interest, income
taxes and foreign exchange gains and losses. There are no intersegment
sales.
-4-
Information about the Company's operations by segment for the three months
ended March 31, 2002 and 2001 is as follows (amounts in thousands):
Three Months
Ended March 31,
2002 2001
Net sales to unaffiliated customers
Core materials segment $ 15,192 $ 14,828
Seafood segment 890 6,323
---------- ----------
Total net sales $ 16,082 $ 21,151
========== ==========
Operating income
Core materials segment $ 1,326 $ 1,395
Seafood segment (394) (587)
---------- ----------
Total operating income $ 932 $ 808
========== ==========
4. RECENTLY ISSUED ACCOUNTING STANDARDS
In June 2001, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 141, "Business
Combinations," and SFAS 142, "Goodwill and Other Intangible Assets." SFAS
No. 141 requires companies to apply the purchase method of accounting for
all business combinations initiated after June 30, 2001 and prohibits the
use of the pooling-of-interest method. SFAS No. 142 eliminates the
amortization of all existing and newly acquired goodwill on a prospective
basis and requires companies to assess goodwill for impairment, at least
annually, based on the fair value of the reporting unit. The Company
adopted SFAS No. 141 and 142 on January 1, 2002 and there was no impact on
our financial position or results of operations.
In June 2001, the FASB issued SFAS No. 143, "Accounting for Asset
Retirement Obligations." SFAS No. 143 addresses financial accounting and
reporting for obligations associated with the retirement of tangible
long-lived assets and the associated asset retirement costs. It applies to
all entities and legal obligations associated with the retirement of
long-lived assets that result from the acquisition, construction,
development and/or normal operation of the long-lived asset. SFAS No. 143
requires that the fair value of a liability for an asset retirement
obligation be recognized in the period in which it is incurred if a
reasonable estimate of fair value can be made. The associated asset
retirement costs are capitalized as part of the carrying amount of the
long-lived asset and are subsequently allocated to expense over the
asset's useful life. The Company will be required to adopt SFAS No. 143 on
January 1, 2003. Management does not believe adoption of this standard
will have a material impact on our financial position or results of
operations.
-5-
In August 2001, the FASB issued SFAS No.144, "Accounting for the
Impairment or Disposal of Long-Lived Assets." SFAS No.144 supersedes SFAS
No. 121, "Accounting for the Impairment of Long-Lived Assets and for
Long-Lived Assets to be Disposed Of," and the accounting and reporting
provisions of APB Opinion No. 30, "Reporting the Results of
Operations--Reporting the Effects of Disposal of a Segment of a Business,
and Extraordinary, Unusual and Infrequently Occurring Events and
Transactions." SFAS No. 144 modifies the method in which companies account
for certain asset impairment losses. The Company adopted No. 144 on
January 1, 2002 and there was no material impact on our financial position
or results of operations.
-6-
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
Liquidity and Capital Resources
The primary sources of liquidity historically have been and are expected to
continue to be cash flow generated from operations and available borrowings
under short-term lines of credit. The Company's domestic line of credit provides
for borrowings up to $16.5 million, subject to an adequate receivables and
inventory borrowing base. The Company also continues to have lines of credit in
Ecuador and Europe totaling approximately $4.7 million. In September 2001, the
Company decided to discontinue its seafood import business. Primarily as a
result of that decision, average borrowing requirements were lower in the first
quarter of 2002 compared to the same period in 2001 and are expected to be lower
for all of 2002 compared to peak levels in 2001.
Typically, there is at least a five-year period between when plantation land,
already cleared and prepared, is seeded and when the balsa is harvested. Because
of the long-term period between seeding and harvest, the Company is evaluating
the adequacy of its current plantation lands to meet future, longer-term demand
for its balsa products. This evaluation must also consider the cost and
availability of land in 2002 and in the future. While the Company has in the
past made periodic purchases of land, this evaluation may result in the
determination that continuing purchases of land are required. Long-term
financing is usually not available in Ecuador and, because of credit tightening
due to the deteriorating economic conditions in other South American countries,
the Company may not be able to finance the land purchase.
The Company continues to invest in capital expenditures in its core materials
segment that position Baltek for long-term growth. Our plant and equipment
expenditures are intended to increase plant capacity, improve productivity and
reduce costs and give us the capability to manufacture new products. Such
expenditures have historically been financed by cash flow from operations. Until
the profitability of the shrimp operation improves, the Company intends to limit
capital expenditures to those required to support existing operations, i.e.,
replacement and maintenance of existing equipment as necessary.
Future capital expenditures, including those for machinery and equipment and
plantation lands are expected to be funded by a combination of cash generated
from operations and outside financing, if available. The Company has no material
commitments for capital expenditures.
The Company had working capital of $16.8 million at March 31, 2002 and December
31, 2001. The Company believes that future cash flow from operations and funds
available under its existing domestic and foreign credit facilities will provide
sufficient resources to meet the Company's needs in 2002.
Results of Operations for the Three Months
Ended March 31, 2002 and 2001
Total sales decreased approximately 24% during the three-month period ended
March 31, 2002 as compared to the same period in 2001. Because of its decision
to terminate the seafood import business during the third quarter of 2001,
seafood revenues (and consequently total revenues) were significantly lower in
2002 than the comparable period in 2001, and are expected to be significantly
lower for all of 2002 compared to 2001.
Core material sales were $15,192,000 and $14,828,000 for the three months ended
March 31, 2002 and 2001, respectively. Domestic sales of core materials were
lower in the first quarter of 2002 compared to the prior period. This reduction
was offset by a strong increase in core material sales in Europe. The soft U.S.
economy continues to affect negatively demand from the boating industry, the
Company's largest end user group. While there is some evidence within the
boating industry of improving sales, we believe wholesale boat shipments in the
first quarter continued to be weak, particularly smaller boats (typically under
30 feet), which are more susceptible to economic downturns than larger boats.
The increase in European core material sales resulted from higher shipments to
manufacturers of windmill blades.
-7-
We believe that the wind energy market will grow at about 25% annually for the
next five years. We also expect that the technology in this market will lead to
development of larger wind turbines, requiring larger windmill blades. This
makes the use of core material even more critical to the application.
Installation of wind generating facilities is increasingly becoming a global
business, resulting in production of windmill blades in many regions of the
world. We therefore expect continuous growth in our sales to this market, as
well as a geographic expansion of our sales base.
Many of the Company's end user markets, including boating, are highly cyclical.
Demand within those industries is dependent upon, among other factors,
discretionary income, inflation, interest rates and consumer confidence.
Fluctuating interest rates and other changes in economic conditions make it
difficult to forecast short or long range trends.
Seafood sales were $890,000 and $6,323,000 for the three months ended March 31,
2002 and 2001, respectively. Management believes that the decrease in 2002 is
primarily due to the Company's decision to terminate its seafood import business
during the third quarter of 2001 (revenues for the import business were
approximately $5.7 million in the first quarter of 2001, compared to none in
2002). Revenues have also been negatively impacted by lower demand in the entire
seafood industry and production levels at the Company's shrimp farms. A downturn
in the entire seafood industry negatively affected prices for many seafood
products, including shrimp produced at the Company's farms. Unfavorable economic
conditions in the U.S. and Japan have continued to result in lower consumption
and therefore lesser demand for seafood products. Although prices for the sizes
of shrimp most commonly sold by the Company did not change materially during the
first quarter of 2002, in many cases these prices are at or near two or three
year lows. The White Spot virus continued to affect the shrimp farms negatively,
resulting in lower production and revenues compared to peak historical levels.
The overall gross margin as a percentage of sales increased in 2002 as compared
to 2001. It is the Company's experience that the typical margin in the seafood
import business is lower than its historical margins realized as a core
materials producer/distributor and shrimp producer. The overall margin is
therefore determined not only by the margins in each segment but also by the mix
of seafood and core material sales. The margin for the Company's core products
remained approximately the same in 2002 as compared to last year.
In December 2001, the Andean Trade Preference Act ("ATPA") expired and, as a
result, products exported from Ecuador, Bolivia, Columbia and Peru will no
longer be duty free. The duty rate on balsa exported from Ecuador is 3.3%. The
U.S. Congress in 2002 is evaluating whether to extend the provisions of the
ATPA, and, if it is extended, it may be retroactive. If not extended by
Congress, we estimate that the duty will reduce our annual gross margin by
approximately 1.0%. During the first quarter of 2002, the Company accrued its
estimated liability because we consider it probable that ATPA legislation will
be passed in 2002, but not applied retroactively.
The negative margins for the seafood segment were approximately the same for the
quarters ended March 31, 2002 and 2001, respectively. The loss from operations
for the same periods was $394,000 and $587,000, respectively. The Company has
made cost reductions at its shrimp operations in 2002 and 2001 to mitigate its
losses. Generally, however, costs incurred for larvae growth at the hatchery and
for growth of the shrimp in the ponds are the same regardless of the yield from
each pond after it is harvested. The profitability of the shrimp farm operations
is therefore largely determined by the selling prices of the shrimp harvested.
The White Spot virus has negatively affected profitability because it has
reduced the yield at the shrimp farms. The negative margins continue to occur
primarily because of the depressed level of commodity selling prices as
discussed above and because of the continuing effects of the White Spot virus.
The amount of shrimp produced at the Company's farms in the first quarter of
2002 was higher than the comparable period in 2001, but below production levels
during the peak years of 1999 and 1998. The decline in commodity selling prices
for shrimp and other seafood products also negatively affected margins of the
seafood import business in the first quarter of 2001. The operating loss
-8-
of the seafood import business, which was terminated by the Company in September
2001, was approximately $188,000 for the quarter ended March 31, 2001.
Selling, general and administrative expenses as a percentage of sales increased
in the first quarter of 2002 as compared to 2001. The overall percentage is
influenced by the amount of SG&A in each segment and the relationship of each
business segment's revenues and SG&A to aggregate amounts. The seafood import
business had a lower percentage of SG&A expenses to revenues as compared to the
Company's core materials segment. Therefore, since seafood revenues decreased
significantly in the first quarter of 2002, SG&A as a percentage of sales
increased. In dollar terms, SG&A expenses for both segments decreased in 2002 as
compared to 2001 from approximately $3,995,000 to $3,723,000. The seafood import
business has SG&A expenses of approximately $190,000 in 2001. The SG&A in the
materials segment decreased approximately $85,000, due to various increases and
decreases in the components of SG&A. In recognition of the relative weakness of
certain of our markets in 2002, the Company continues to review all areas of
costs, including SG&A, for potential savings. But at the same time, to prepare
the Company for long-term success and to respond to activities of our
competitors, we expect to increase certain selling expenses in 2002,
particularly in Europe.
Interest expense decreased in the first quarter of 2002 as compared to 2001,
from $260,000 to $173,000. The seafood import business required high levels of
bank debt to support its working capital requirements. As a result of our exit
from that business during the third quarter of 2001, average borrowings were
lower in the first quarter of 2002 compared to the same period in 2001 and are
expected to continue to be lower for all of 2002 compared to 2001. Interest
rates on dollar denominated loans in Ecuador during the first quarter were
significantly higher than rates available to the Company in the U.S. To take
advantage of the lower rates, during the first quarter of 2002, the Company
shifted a portion of its borrowings from Ecuador to the U.S. The combination of
lower borrowing requirements and lower rates reduced interest expense in the
first quarter of 2002 compared to 2001. The Company also benefited from lower
interest rates in the U.S. in the first quarter of 2002 compared to the same
period in 2001. The level of borrowing in all periods is related to the
Company's working capital needs and cash flows generated from operations.
The Company had a foreign exchange loss of $46,000 and a gain of $2,000 for the
periods ended March 31, 2002 and 2001, respectively. Translation gains and
losses are mainly caused by the relationship of the U.S. dollar to the foreign
currencies in the countries where the Company operates, and arise when
remeasuring foreign currency balance sheets into U.S. dollars. The Company
utilizes foreign exchange contracts to hedge certain inventory purchases. The
Company does not enter into foreign currency transactions for speculative
purposes. Management is unable to forecast the impact of translation gains or
losses on future periods due to the unpredictability in the fluctuation of
foreign exchange.
The provision for income taxes was at the rate of 32% and 37% of pre-tax
earnings for the quarters ended March 31, 2002 and 2001, respectively.
Sales and expenses were affected in all periods by the different exchange rates
applied in remeasuring the books of accounts of the Company's foreign
subsidiaries.
Recently Issued Accounting Standards
In June 2001, the FASB issued SFAS No. 141, "Business Combinations," and SFAS
142, "Goodwill and Other Intangible Assets." SFAS No. 141 requires companies to
apply the purchase method of accounting for all business combinations initiated
after June 30, 2001 and prohibits the use of the pooling-of-interest method.
SFAS No. 142 eliminates the amortization of all existing and newly acquired
goodwill on a prospective basis and requires companies to assess goodwill for
impairment, at least annually, based on the fair value of the reporting unit.
The Company adopted SFAS No. 141 and 142 on January 1, 2002 and there was no
impact on our financial position or results of operations.
-9-
In June 2001, the FASB issued SFAS No. 143, "Accounting for Asset Retirement
Obligations." SFAS No. 143 addresses financial accounting and reporting for
obligations associated with the retirement of tangible long-lived assets and the
associated asset retirement costs. It applies to all entities and legal
obligations associated with the retirement of long-lived assets that result from
the acquisition, construction, development and/or normal operation of the
long-lived asset. SFAS No. 143 requires that the fair value of a liability for
an asset retirement obligation be recognized in the period in which it is
incurred if a reasonable estimate of fair value can be made. The associated
asset retirement costs are capitalized as part of the carrying amount of the
long-lived asset and are subsequently allocated to expense over the asset's
useful life. The Company will be required to adopt SFAS No. 143 on January 1,
2003. Management does not believe adoption of this standard will have a material
impact on our financial position or results of operations.
In August 2001, the FASB issued SFAS No.144, "Accounting for the Impairment or
Disposal of Long-Lived Assets." SFAS No.144 supersedes SFAS No. 121, "Accounting
for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed
Of," and the accounting and reporting provisions of APB Opinion No. 30,
"Reporting the Results of Operations--Reporting the Effects of Disposal of a
Segment of a Business, and Extraordinary, Unusual and Infrequently Occurring
Events and Transactions." SFAS No. 144 modifies the method in which companies
account for certain asset impairment losses. The Company adopted No. 144 on
January 1, 2002 and there was no material impact on our financial position or
results of operations.
Forward Looking Statements
Certain statements in this quarterly report on Form 10-Q, the Annual Report on
Form 10-K, the Company's press releases or in reports to stockholders constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements relate to, among other things,
industries in which the Company operates, the U.S. and global economies,
earnings, cash flow and operating performance and may be indicated by words or
phrases such as "anticipates," "supports," "plans," "projects," "expects,"
"should," "forecast," "believe," "management is of the opinion" and similar
words or phrases. Forward-looking statements are subject to inherent
uncertainties and risks, including among others: changes in commodity prices for
shrimp; environmental factors affecting yields at the Company's shrimp farms and
balsa plantations; increasing price and product/service competition by domestic
and foreign competitors; fluctuations in the cost and availability of raw
materials; economic and political conditions in Ecuador; general industry trends
and growth rates, including the continued advancement in composite materials
technology and its acceptance as an alternative to conventional methods of
construction; and economic conditions as they affect demand for our customers'
products (the Company is a raw material supplier to original equipment
manufacturers and sub-tier suppliers engaged in the fabrication of composite
components and assemblies). In addition, such statements could be affected by
general domestic and international economic conditions, including interest rate
and currency exchange rate fluctuations. The list of factors presented here
should not be considered to be a complete list of all potential risks and
uncertainties. Unlisted factors may present significant additional obstacles to
the realization of forward-looking statements.
In light of these risks and uncertainties, actual events and results may vary
significantly from those expressed or implied by such statements. Accordingly,
forward-looking statements should not be relied upon as a prediction of actual
results and readers are cautioned not to place undue reliance on such
forward-looking statements. The Company undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
* * * * *
-10-
Item 3. Quantitative and Qualitative Disclosure of Market Risk
For quantitative and qualitative disclosures about market risks affecting
Baltek, see Item 7A "Quantitative and Qualitative Disclosure About Market Risk"
in Baltek's Annual Report on Form 10-K for the year ended December 31, 2001.
There have been no material changes to our exposure to market risks since
December 31, 2001.
-11-
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(A) Exhibits:
11. An exhibit showing the computation of per-share earnings is
omitted because the computation can be clearly determined from
the material contained in this Quarterly Report on Form 10-Q.
(B) Reports on Form 8-K:
None.
12
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 thereunto duly authorized.
BALTEK CORPORATION
(Registrant)
Date: May 14, 2002 /s/ Jacques Kohn
--------------------------------
Jacques Kohn
President
Date: May 14, 2002 /s/ Ronald Tassello
--------------------------------
Ronald Tassello
Chief Financial Officer and Treasurer
-13-