Video Display Corporation and Subsidiaries
August 31, 2019
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August 31,
2019
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February 28,
2019
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Working capital
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$
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2,017
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$
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3,354
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Liquid assets
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$
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577
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$
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410
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Management has implemented a plan to improve the liquidity of the Company. The Company has been fulfilling a
plan to increase revenues at all the divisions, each structured to the particular division which has resulted in the expectation of increased orders in. The Company has reduced other expenses at the divisions, as well as at the corporate location
with the expectation that further decreases can be achieved. The Company has completed the merger of the two Florida businesses into one facility and the relocation of Lexel Imaging into a new facility. These changes are projected to realize annual
savings through reduced expenses. Management continues to explore options to monetize certain long-term assets of the business. If additional and more permanent capital is required to fund the operations of the Company, no assurance can be given
that the Company will be able to obtain the capital on terms favorable to the Company, if at all.
The ability of the Company to continue
as a going concern is dependent upon the success of managements plans to improve revenues, the operational effectiveness of continuing operations, to liquidate the subsidiary noted above, the procurement of suitable financing, or a combination
of these. The uncertainty regarding the potential success of managements plan create substantial doubt about the ability of the Company to continue as a going concern.
Cash provided by operations for the six months ended August 31, 2019 was $0.4 million. The net loss from operations was
$0.8 million. Changes in working capital provided $1.1 million, primarily due to an decrease in accounts receivable of $1.1 million, a decrease in prepaid expenses and other assets of $0.4 million, a decrease in inventory of
$0.2 million, and an increase in accounts payable of $0.2 million, offset by a decrease in customer deposits of $0.7 million. Cash used by operations for the six months ended August 31, 2018 was $0.8 million.
Investing activities used $0.2 million for the six months ended August 31, 2019 relating primarily to capital expenditures.
Investing activities provided $0.3 million for the six months ended August 31, 2018 primarily resulting from net cash proceeds received from the sale of investments along with cash proceeds received from the sale of the Companys
investment in a real estate partnership.
Financing activities used $0.1 million for the six months ended August 31, 2019. The
Company paid $0.1 million to an officer for funds borrowed in the previous fiscal year. Financing activities provided $0.3 million for the six months ended August 31, 2018 resulting from net proceeds from related-party loans and net
proceeds from a line of credit.
The Company has a stock repurchase program, pursuant to which it has been authorized to repurchase up to
2,632,500 shares of the Companys common stock in the open market. On January 20, 2014, the Board of Directors of the Company approved a one-time continuation of the stock repurchase program, and
authorized the Company to repurchase up to 1,500,000 additional shares of the Companys common stock on the open market, depending on the market price of the shares. There is no minimum number of shares required to be repurchased under the
program.
For the six months ending August 31, 2019, the Company did not purchase any shares of the Video Display Corporation stock.
The Company repurchased 8,858 shares at an average cost of $1.12 per share for the six months ending August 31, 2018. Under the Companys stock repurchase program, an additional 490,186 shares remain authorized to be repurchased by the
Company at August 31, 2019.
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