VALLEY FORGE SCIENTIFIC CORP

CIK:0000836429|SEC Filings

Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2015	Jul. 31, 2014	Jul. 31, 2013
Consolidated Statements of Income and Comprehensive Income [Abstract]
Net sales	$ 75,019	$ 64,769	$ 62,796
Cost of sales	34,802	28,540	30,425
Gross profit	40,217	36,229	32,371
Operating expenses
Research and development	4,261	5,158	3,643
Sales and marketing	15,367	14,360	13,805
Medical device excise tax	487	486	289
Exit costs	719	682	0
General and administrative	13,293	10,962	10,913
Total operating expenses	34,127	31,648	28,650
Operating income	6,090	4,581	3,721
Other income (expenses)
Investment income	11	10	31
Interest expense	(82)	(19)	(28)
Miscellaneous	0	(11)	(35)
Total other income (expenses)	(71)	(20)	(32)
Income from continuing operations before provision for income taxes	6,019	4,561	3,689
Provision for income taxes	1,541	1,498	1,130
Net income	$ 4,478	$ 3,063	$ 2,559
Earnings per share:
Basic (in dollars per share)	$ 0.18	$ 0.12	$ 0.10
Diluted (in dollars per share)	$ 0.18	$ 0.12	$ 0.10
Basic weighted average common shares outstanding (in share)	25,362,166	25,323,622	25,243,010
Diluted weighted average common shares outstanding (in share)	25,449,027	25,393,264	25,337,525
Net income	$ 4,478	$ 3,063	$ 2,559
Foreign currency translation adjustment	(1,339)	104	47
Comprehensive income	$ 3,139	$ 3,167	$ 2,606

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2015	Jul. 31, 2014	Jul. 31, 2013
Cash Flows from Operating Activities
Net income	$ 4,478	$ 3,063	$ 2,559
Adjustments to reconcile net income to net cash (used in) provided by operating activities
Depreciation	1,621	1,173	1,123
Amortization of intangible assets	1,232	876	680
Amortization of deferred financing costs	23	0	0
Provision for doubtful accounts receivable	53	338	207
Stock-based compensation	833	1,008	931
Deferred income taxes	94	1,836	(49)
(Gain) loss on sale of equipment	31	(10)	35
(Increases) decreases in:
Accounts receivable	640	(406)	(2,553)
Inventories	535	179	1,191
Prepaid expenses and other current assets	154	(221)	(130)
Income taxes refundable	0	254	(254)
Increase (decrease) in:
Accounts payable	1,105	(849)	845
Accrued expenses	602	(667)	603
Deferred revenue	(1,288)	(1,288)	(1,288)
Income taxes payable	(356)	380	(235)
Net cash provided by (used in) operating activities	9,757	5,666	3,665
Cash Flows from Investing Activities
Proceeds on the sale of equipment	1	18	55
Purchase of property and equipment	(1,225)	(922)	(550)
Acquisition of patents and other intangibles	(230)	(258)	(412)
Acquisitions, less cash acquired	(13,177)	(1,387)	(2,848)
Increase in cash value of life insurance	(12)	(11)	(3)
Net cash used in investing activities	(14,643)	(2,560)	(3,758)
Cash Flows from Financing Activities
Deferred financing costs	(102)	0	0
Proceeds from borrowings under the Term Loan Facility	2,750	0	0
Principal payments on long-term debt	(275)	0	0
Tax benefit associated with the exercise of non-qualified stock options	16	38	72
Proceeds from the issuance of common stock	29	59	65
Net cash provided by financing activities	2,418	97	137
Foreign exchange rate effect on cash and cash equivalents	(1,064)	(230)	(254)
Net increase (decrease) in cash and cash equivalents	(3,532)	2,973	(210)
Cash and cash equivalents
Beginning	15,443	12,470	12,680
Ending	11,911	15,443	12,470
Cash paid for:
Interest	47	19	28
Income taxes (received) paid	1,589	(1,009)	1,568
Supplemental Schedule of Non-cash Investing and Financing Activity
Purchase of equipment included in accounts payable	$ 124	$ 17	$ 120

Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 31, 2015	Jul. 31, 2014
Current Assets
Cash and cash equivalents	$ 11,911	$ 15,443
Accounts receivable, net of allowance for doubtful accounts of $700 and $722, respectively	13,935	14,641
Inventories	16,696	15,134
Income taxes refundable	0	0
Prepaid expenses	1,390	1,223
Deferred income taxes	2,346	2,042
Total current assets	46,278	48,483
Property and Equipment, net	10,519	8,785
Intangible and Other Assets
Goodwill	17,133	12,738
Intangible assets, net	21,572	13,383
Deferred income taxes	0	1,219
Cash value of life insurance	119	107
Total assets	95,621	84,715
Current Liabilities
Accounts payable	4,078	2,530
Accrued expenses	3,576	2,845
Income taxes payable	193	386
Current maturities of long-term debt	550	0
Deferred revenue	1,288	1,288
Total current liabilities	9,685	7,049
Long-Term Liabilities
Borrowings under term loan facility	1,925	0
Deferred revenue	11,954	13,242
Deferred income taxes	776	0
Contingent acquisition liability	2,839	0
Total long-term liabilities	17,494	13,242
Total liabilities	$ 27,179	$ 20,291
Commitments and Contingencies (Notes 12 and 19)
Stockholders' Equity
Common stock at July 31, 2015 and July 31, 2014, $0.001 par value, 50,000,000 shares authorized; 25,573,287 and 25,364,608 shares issued and outstanding, respectively	$ 26	$ 25
Additional paid-in capital	29,472	28,594
Retained earnings	40,638	36,160
Accumulated other comprehensive loss:
Foreign currency translation adjustment	(1,694)	(355)
Total stockholders' equity	68,442	64,424
Total liabilities and stockholders' equity	$ 95,621	$ 84,715