SERVOTRONICS INC /DE/ - Quarter Report: 2008 May (Form 10-Q)

X	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE

__	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE

      

        
      

      

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	PART I. FINANCIAL INFORMATION	Page No.
Item 1.	Financial Statements (Unaudited)
	a)       Consolidated balance sheets, March 31, 2008 and December 31, 2007	3
	b)       Consolidated statements of operations for the three months ended
	March 31, 2008 and 2007	4
	c)       Consolidated statements of cash flows for the three months ended
	March 31, 2008 and 2007	5
	d)       Notes to consolidated financial statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition
	and Results of Operations	13
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	15
Item 4T.	Controls and Procedures	15
	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	16
Item 1A.	Risk Factors	16
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	16
Item 3.	Defaults Upon Senior Securities	16
Item 4.	Submission of Matters to a Vote of Security Holders	16
Item 5.	Other Information	16
Item 6.	Exhibits	16
	Signatures	17

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SERVOTRONICS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
($000’s omitted except share and per share data)
		March 31,				December 31,
		2008				2007
		(Unaudited)
Assets
Current assets:
Cash and cash equivalents		$	4,016			$	4,879
Accounts receivable			4,970				4,570
Inventories			7,770				8,011
Deferred income taxes			411				411
Other assets			838				572
Total current assets			18,005				18,443
Property, plant and equipment, net			5,849				5,870
Other non-current assets			216				218
		$	24,070			$	24,531
Liabilities and Shareholders’ Equity
Current liabilities:
Current portion of long-term debt		$	387			$	387
Accounts payable			1,395				1,419
Accrued employee compensation and benefit costs			1,325				1,278
Accrued income taxes			247				489
Other accrued liabilities			371				298
Total current liabilities			3,725				3,871
Long-term debt			4,187				4,242
Deferred income taxes			412				412
Shareholders’ equity:
Common stock, par value $.20; authorized
4,000,000 shares; issued 2,614,506 shares;
outstanding 1,935,797 (1,933,797 – 2007) shares			523				523
Capital in excess of par value			13,033				13,033
Retained earnings			6,478				6,753
Accumulated other comprehensive loss			(67)				(67)
			19,967				20,242
Employee stock ownership trust commitment			(1,832)				(1,832)
Treasury stock, at cost 333,404 (335,404 – 2007) shares			(2,389)				(2,404)
Total shareholders’ equity			15,746				16,006
		$	24,070			$	24,531

 

See notes to consolidated financial statements

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SERVOTRONICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
($000’s omitted except share and per share data)
(Unaudited)
		Three Months Ended
		March 31,
		2008				2007
Revenues		$	8,985			$	6,530
Costs, expenses and other income:
Cost of goods sold, exclusive of depreciation			6,468				5,117
Selling, general and administrative			1,023				911
Interest			47				62
Depreciation and amortization			140				139
Other income, net			(38)				(34)
			7,640				6,195
Income before income tax provision			1,345				335
Income tax provision			492				131
Net income		$	853			$	204
Income per share:
Basic
Net income per share		$	0.44			$	0.1
Diluted
Net income per share		$	0.4			$	0.1