FORM 10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
{X} QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Quarterly Period ended December 31, 1997
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 0-5896
JACO ELECTRONICS, INC.
(Exact name of registrant as specified in its charter)
NEW YORK 11-1978958
(State of other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
145 OSER AVENUE, HAUPPAUGE, NEW YORK 11788 (Address of
principal executive office) (Zip Code)
Registrant's telephone number, including area code: (516) 273-5500
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 report), and (2) has been subject to such filing
requirements for the past 90 days.
YES X NO __
Number of Shares of Registrant's Common Stock Outstanding as of February 3, 1998
- 3,778,221 (Excluding 197,500 Shares of Treasury Stock and 90,000 Shares of
Restricted Stock).
<PAGE>
<TABLE>
<CAPTION>
FORM 10-Q December 31, 1997
Page 2
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
JACO ELECTRONICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
December 31, June 30,
1997 1997
------------------ -----------------
ASSETS
Current Assets
<S> <C> <C>
Cash $ 476,724 $ 463,352
Marketable securities 690,723 627,179
Accounts receivable - net 23,202,003 22,008,210
Inventories 32,280,464 33,311,201
Prepaid expenses and other 1,177,631 1,359,617
Prepaid income taxes 110,264 528,243
Deferred income taxes 818,000 750,000
------------------ -----------------
Total current assets 58,755,809 59,047,802
Property, plant and equipment - net 5,543,853 5,009,045
Deferred income taxes 261,000 244,000
Excess of cost over net assets acquired 4,055,937 4,151,574
Other assets 1,635,601 1,543,257
------------------ -----------------
$ 70,252,200 $69,995,678
================== =================
See accompanying notes to condensed consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FORM 10-Q December 31, 1997
Page 3
JACO ELECTRONICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
December 31, June 30,
1997 1997
----------------- ------------------
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities
<S> <C> <C>
Accounts payable and accrued expenses $ 17,351,691 $ 17,302,127
Current maturities of long term debt and
capitalized lease obligations 585,756 599,239
----------------- ------------------
Total current liabilities 17,937,447 17,901,366
Long term debt and capitalized lease obligations 14,950,045 15,552,549
Deferred compensation 675,000 650,000
SHAREHOLDERS' EQUITY
Preferred stock - authorized, 100,000 shares,
$10 par value; none issued
Common stock - authorized 10,000,000 shares,
$.10 par value; issued 4,065,721 and
3,975,721 shares respectively, and 3,954,221 and 3,888,221
shares outstanding, respectively 406,572 397,572
Additional paid-in capital, net of deferred compensation 22,272,545 22,180,295
Unrealized gain on marketable securities 120,697 120,200
Retained earnings 14,754,909 13,893,696
Treasury stock (865,015) (700,000)
----------------- ------------------
Total shareholders' equity 36,689,708 35,891,763
----------------- ------------------
$ 70,252,200 $ 69,995,678
================= ==================
See accompanying notes to condensed consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FORM 10-Q December 31, 1997
Page 4
JACO ELECTRONICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE MONTHS ENDED DECEMBER 31,
(UNAUDITED)
1997 1996
---------------- ----------------
<S> <C> <C>
NET SALES $39,787,894 $38,194,939
COST AND EXPENSES
Cost of goods sold 31,589,263 30,183,146
---------------- ----------------
Gross profit 8,198,631 8,011,793
Selling, general and administrative expenses 7,149,105 6,761,206
---------------- ----------------
Operating profit 1,049,526 1,250,587
Interest expense 270,343 206,306
---------------- ----------------
Earnings before income taxes 779,183 1,044,281
Income tax provision 316,000 423,000
---------------- ----------------
NET EARNINGS $ 463,183 $ 621,281
================ ================
Net earnings per common share
Basic and diluted $ .12 $ .16
================ ================
Weighted average common shares outstanding
Basic 3,882,851 3,888,221
Diluted 3,938,860 3,940,394
================ ================
See accompanying notes to condensed consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FORM 10-Q December 31, 1997
Page 5
JACO ELECTRONICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE SIX MONTHS ENDED DECEMBER 31,
(UNAUDITED)
1997 1996
----------------- ------------------
<S> <C> <C>
NET SALES $ 76,666,428 $ 76,516,729
COST AND EXPENSES
Cost of goods sold 60,650,643 60,389,434
----------------- ------------------
Gross profit 16,015,785 16,127,295
Selling, general and administrative expenses 14,026,220 13,353,450
----------------- ------------------
Operating profit 1,989,565 2,773,845
Interest expense 542,352 405,923
----------------- ------------------
Earnings before income taxes 1,447,213 2,367,922
Income tax provision 586,000 959,000
----------------- ------------------
NET EARNINGS $ 861,213 $ 1,408,922
================= ==================
Net earnings per common share
Basic and diluted $ .22 $ .36
================= ==================
Weighted average common shares outstanding
Basic 3,885,537 3,909,906
Diluted 3,939,345 3,961,315
================= ==================
See accompanying notes to condensed consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FORM 10-Q December 31,1997
Page 6
JACO ELECTRONICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES
IN SHAREHOLDERS' EQUITY
FOR THE SIX MONTHS ENDED DECEMBER 31, 1997
(UNAUDITED)
Unrealized
Additional Gain on
Common Stock Paid-In Marketable Retained Treasury
Shares Amount Capital Securities Earnings Stock
--------------- ------------- ----------------- --------------- ----------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at July 1, 1997 3,975,721 $ 397,572 $ 22,180,295 $ 120,200 $ 13,893,696 $(700,000)
Issuance of restricted stock 90,000 9,000 621,000
Deferred compensation expense
Purchase of treasury stock (165,015)
Unrealized gain on marketable
securities - net 497
Net earnings 861,213
--------------- ------------- ----------------- --------------- ----------------- --------------
Balance at December 31, 1997 4,065,721 $ 406,572 $ 22,801,295 $ 120,697 $ 14,754,909 $(865,015)
=============== ============= ================= =============== ================= ==============
JACO ELECTRONICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES
IN SHAREHOLDERS' EQUITY
FOR THE SIX MONTHS ENDED DECEMBER 31, 1997
(UNAUDITED)
Deferred Shareholders'
Compensation Equity
--------------- -----------------
Balance at July 1, 1997 $ 35,891,763
Issuance of restricted stock $ (540,000) 90,000
Deferred compensation expense 11,250 11,250
Purchase of treasury stock (165,015)
Unrealized gain on marketable
securities - net 497
Net earnings 861,213
--------------- -----------------
Balance at December 31, 1997 $ (528,750) $ 36,689,708
=============== =================
See accompanying notes to condensed consolidated financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FORM 10-Q December 31, 1997
Page 7
JACO ELECTRONICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED DECEMBER 31,
(UNAUDITED)
1997 1996
---------------- ----------------
Cash flows from operating activities
<S> <C> <C>
Net earnings $ 861,213 $ 1,408,922
Adjustments to reconcile net earnings to net
cash provided by operating activities
Depreciation and amortization 650,795 463,786
Deferred compensation 36,250 25,000
Deferred income tax benefit (85,000) (15,000)
Gain on sale of equipment (11,094)
Provision for doubtful accounts 235,575 162,450
Changes in operating assets and liabilities, net
of effect of acquisitions
Decrease in operating assets - net 291,333 2,785,845
Increase (decrease) in operating liabilities - net 49,564 (2,760,155)
---------------- ----------------
Net cash provided by operating activities 2,039,730 2,059,754
---------------- ----------------
Cash flows from investing activities
Capital expenditures (1,023,300) (782,641)
Proceeds from sale of equipment 34,000
Acquisition of operating assets - net (1,257,369)
Increase in marketable securities - net (63,046)
Increase in other assets (159,010) (128,989)
---------------- ----------------
Net cash used in investing activities (1,245,356) (2,134,999)
---------------- ----------------
Cash flows from financing activities
Borrowings under line of credit 73,312,120 81,253,959
Payments under line of credit (73,455,110) (80,002,019)
Principal payments under equipment financing
and term loans (472,997) (240,359)
Purchase of treasury stock (165,015) (700,000)
---------------- ----------------
Net cash (used in) provided by financing activities (781,002) 311,581
---------------- ----------------
NET INCREASE IN CASH 13,372 236,336
---------------- ----------------
Cash at beginning of period 463,352 164,161
---------------- ----------------
Cash at end of period $ 476,724 $ 400,497
================ ================
See accompanying notes to condensed consolidated financial statements
</TABLE>
<PAGE>
FORM 10-Q December 31, 1997
Page 8
JACO ELECTRONICS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE A - BASIS OF PRESENTATION
1) The accompanying condensed consolidated financial statements reflect all
adjustments, consisting only of normal recurring accrual adjustments, which
are in the opinion of management, necessary for a fair presentation of the
consolidated financial position and the results of operations at and for
the periods presented. Such financial statements do not include all the
information or footnotes necessary for a complete presentation. Therefore,
they should be read in conjunction with the Company's audited consolidated
statements for the year ended June 30, 1997 and the notes thereto included
in the Company's annual report on Form 10-K. The results of operations for
the interim periods are not necessarily indicative of the results for the
entire year.
2) The Company has a $30,000,000 term loan and revolving line of credit
facility with its banks, which are based principally on eligible accounts
receivables and inventories as defined in the agreement. The agreement was
amended to (i) extend the maturity date to September 13, 2000, (ii) change
the interest rate to a rate based on the average 30 day LIBOR rate plus 3/4
% to 1 1/4% depending on the Company's performance measured by a financial
ratio effective January 1, 1998 and (iii) changed the requirements of
certain financial covenants. The applicable interest rate may be adjusted
quarterly and borrowings under this facility are collateralized by
substantially all of the assets of the Company.
3) The Board of Directors of the Company has authorized the purchase of up to
250,000 shares of its outstanding common stock under a stock repurchase
program. The purchases may be made by the Company from time to time on the
open market at the Company's discretion. The Company has resumed purchases
of its common stock under this program and as of February 3, 1998 a total
of 197,500 shares have been repurchased for aggregate consideration of
$1,406,270.
4) For interim financial reporting purposes, the Company uses the gross profit
method for computing inventories, which consists of goods held for resale.
5) In February 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 128, "Earnings Per Share," which is
effective for financial statements for both interim and annual periods
ending after December 15, 1997. The new standard eliminates primary and
fully diluted earnings per share and requires presentation of basic and
diluted earnings per share together with disclosure of how the per share
amounts were computed. The Company has adopted this standard and has
restated its earnings per share for prior periods presented.
<PAGE>
FORM 10-Q December 31, 1997
Page 9
The number of shares used in the Company's basic and diluted earnings
per share computations are as follows:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
December 31, December 31.
------------------------- ------------------------
1997 1996 1997 1996
----------- ----------- ----------- ------------
Weighted average common shares
outstanding net of treasury shares,
<S> <C> <C> <C> <C>
for basic earnings per share 3,882,851 3,888,221 3,885,537 3,909,906
Common stock equivalents for
stock options and restricted stock 56,009 52,173 53,808 51,409
----------- ----------- ----------- -----------
Weighted average common shares
outstanding for diluted earnings per share 3,938,860 3,940,394 3,939,345 3,961,315
========= ========= ========= =========
</TABLE>
6) During August 1996, and January 1997, the Company purchased QPS
Electronics, Inc. and Corona Electronics, Inc., respectively, both of which
are electronic component distributors. Aggregate consideration paid for the
acquisitions approximated $4,700,000 of which $157,500 was paid through the
issuance of 20,000 shares of the Company's common stock. These acquisitions
have been accounted for by the purchase method and, as such, the fair value
of the assets and liabilities acquired have been recorded on the date of
the respective acquisitions. The respective results of their operations are
included with those of the Company from the date of acquisition. The excess
of the purchase price, over the fair value of the assets acquired,
approximately $3,053,000, is being amortized using the straight-line method
over a period of twenty years. Pro forma historical results of operations
are not presented, as such results would not be materially different from
the historical results of the Company.
7) In December 1997, the shareholders' of the Company approved an amendmentto
the Company's 1993 Non-Qualified Stock Option Plan, (the "Plan") to
increase the aggregate number of shares of common stock which may be issued
upon exercise of all options granted under the Plan from 293,333 shares to
600,000 shares. Additionally, the shareholders' approved the adoption of
the Jaco Electronics, Inc. Restricted Stock Plan (the "Restricted Stock
Plan"). The Restricted Stock Plan, enables the Board of Directors or Plan
Committee to have sole discretion and authority to determine who may
purchase restricted stock, the number of shares, the price to be paid and
the restrictions placed upon the stock. Pursuant to the Restricted Stock
Plan, the Board of Directors has authorized the purchase of 90,000 shares
of the Company's common stock by certain employees at a purchase price of
$1.00 per share. Shares purchased are subject to a four-year vesting
period.
<PAGE>
FORM 10-Q December 31, 1997
Page 10
JACO ELECTRONICS, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Statements in this filing, and elsewhere, which look forward in time involve
risks and uncertainties which may effect the actual results of operations. The
following important factors, among others, have affected and, in the future,
could affect the Company's actual results: dependence on a limited number of
suppliers for products which generate a significant portion of the Company's
sales, the effect upon the Company of increases in tariffs or duties, changes in
trade treaties, strikes or delays in air or sea transportation and possible
future United States legislation with respect to pricing and/or import quotas on
products imported from foreign countries, and general economic effect upon
manufacturers, end users of electronic components and electronic component
distributors.
GENERAL
Jaco is a distributor of electronic components and provider of contract
manufacturing and value-added services. Products distributed by Jaco include
semiconductors, capacitors, resistors, electromechanical devices, flat panel
displays (FPD's) and power supplies used in the assembly and manufacturing of
electronic equipment.
The Company's customers are primarily small and medium sized manufacturers. The
trend for these customers has been to shift certain manufacturing functions to
third parties (outsourcing). The Company intends to seek to capitalize on this
trend toward outsourcing by increasing sales of products enhanced by value-added
services. Value-added services currently provided by Jaco consist of configuring
complete computer systems to customer specifications both in tower and desktop
configurations, kitting (e.g. supplying sets of specified quantities of products
to a customer that are prepackaged for ease of feeding the customer's production
lines), automated inventory management services and contract manufacturing
services through the Company's wholly-owned subsidiary, Nexus Custom
Electronics, Inc.
<PAGE>
FORM 10-Q December 31, 1997
Page 11
Results of Operations
The following table sets forth certain items in the Company's statement of
earnings as a percentage of net sales for the periods shown;
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
December 31, December 31,
------------------------------ -------------------------------
1997 1996 1997 1996
------------ -------------- -------------- -------------
<S> <C> <C> <C> <C>
Net Sales 100.0% 100.0% 100.0% 100.0%
Cost of goods sold 79.4 79.0 79.1 78.9
------------ -------------- -------------- -------------
Gross profit 20.6 21.0 20.9 21.1
Selling, general and
administrative expenses 18.0 17.7 18.3 17.5
------------ -------------- -------------- -------------
Operating profit 2.6 3.3 2.6 3.6
Interest expense 0.6 0.6 0.7 0.5
------------ -------------- -------------- -------------
Earnings before income taxes 2.0 2.7 1.9 3.1
Income tax provisions 0.8 1.1 0.8 1.3
------------ -------------- -------------- -------------
NET EARNINGS 1.2% 1.6% 1.1% 1.8%
============ ============== ============== =============
</TABLE>
COMPARISON OF THE THREE AND SIX MONTHS ENDED DECEMBER 31, 1997 AND DECEMBER 31,
1996
- --------------------------------------------------------------------------------
Net sales for the second quarter and six months ended December 31, 1997 were
$39.8 million and $76.7 million as compared to $38.2 million and $76.5 million
for the three months and six months ended December 31, 1996. This represented a
4.2 % and .2% increase in net sales, respectively. The increase in net sales
during the current quarter was partially attributable to the sales of flat panel
displays and an increase in revenue from the wholly owned subsidiary (Nexus), a
contract manufacturer. The Company believes that its flat panel division will
generate sales growth in future periods. Additionally, during the quarter, the
Company increased its sales in contract manufacturing through growth in both
existing and new customers.
<PAGE>
FORM 10-Q December 31, 1997
Page 12
Gross profit margins for the three and six months ended December 31, 1997 were
20.6% and 20.9% as compared to 21.0% and 21.1% for the comparable periods of the
prior fiscal year. The Company was able to slightly increase profit margins on
it's component sales. However, the slight overall decrease in gross profit
margins during the three and six months ended December 31, 1997 was attributable
to the lower profit margins generated by contracting manufacturing, which was
the result of increased revenue from larger contracts with lower margins.
Selling, general and administrative (SG&A) expenses were $7.1 million and $14.0
million for the three and six months ended December 31, 1997, compared to $6.8
million and $13.4 million last year. The increase was attributable to the
acquisition of Corona Electronics, Inc. during January 1997, the hiring of
additional sales personnel for the flat panel group, additional field
application engineers (FAE's) and additional management to focus on
semiconductor growth. These increases were partially offset during the current
quarter and six months by a reduction in certain administrative costs and a
reduction in non-core personnel.
Interest expense increased to $270,000 and $542,000 for the three and six months
ended December 31, 1997 compared to $206,000 and $406,000 for the same periods
last year. The increase was primarily attributable to the increased borrowings
resulting from the acquisition of Corona Electronics, Inc. (see note A-6 of the
notes to condensed consolidated financial statements) during fiscal 1997.
Net earnings for the three months ended December 31, 1997 was $463,000, or $.12
per share diluted, as compared to $621,000, or $.16 per share diluted for the
three months ended December 31, 1996. Net earnings for the six months ended
December 31, 1997 was $861,000, or $.22 per share diluted, as compared to
$1,409,000, or $.36 per share diluted as compared to the comparable period last
year. The decrease in net earnings was attributable to the increase in SG&A
expenses incurred in expanding the semiconductor management group, flat panel
display division, field application engineer program and the acquisition of
Corona Electronics, Inc.
LIQUIDITY AND CAPITAL RESOURCES
The Company's agreement with its banks, as amended, provides the Company with a
$30,000,000 term loan and revolving line of credit facility based principally on
eligible accounts receivables and inventories of the Company as defined in the
agreements expiring September 13, 2000. Effective June 1, 1997, borrowings under
the credit facility bear interest at the average 30-day LIBOR rate plus 1%. As
of January 1, 1998, interest is based on the average daily 30-day LIBOR rate
plus 3/4% to 1 1/4% depending on a financial ratio. The applicable interest rate
may be adjusted quarterly. The outstanding balance on the revolving line of
credit facility was $13,880,202 at December 31, 1997. The term loan, with a
remaining balance of $696,428 at December 31, 1997, requires monthly principal
payments of $17,857, together with interest through September 13, 2000, with a
final payment of $107,147 on September 13, 2000. Borrowings under this facility
are collateralized by substantially all of the assets of the Company. The
agreement contains provisions for maintenance of certain financial ratios, all
of which
<PAGE>
FORM 10-Q December 31, 1997
Page 13
the Company believes it is in compliance with at December 31, 1997, and
prohibits the payment of cash dividends. The agreement also provides for the
issuance of letters of credit by the banks on the Company's behalf. At December
31, 1997, $500,000 of such letters of credit were outstanding.
For the six months ended December 31, 1997, the Company's net cash provided by
operating activities was $2,040,000 as compared to net cash provided by
operating activities of $2,060,000 for the six months ended December 31, 1996.
Net cash used in investing activities decreased to $1,245,000 for the first six
months of fiscal 1998, as compared to $2,135,000 for the first six months of
fiscal 1997. The acquisition of the operating assets of QPS Electronics, Inc.
during fiscal 1997 required $1,257,000, which was financed substantially through
additional borrowings from the Company's line of credit. The Company's cash
expenditures may vary significantly from current levels, based on a number of
factors, including, but not limited to, future acquisitions, if any.
On April 15, 1996, the Company's Board of Directors authorized the purchase of
up to 250,000 shares of its common stock or approximately 6.3% of the then
outstanding shares, under a stock repurchase program. During the quarter, the
Company repurchased 24,000 shares at an average market price of $6.88 per share.
As of February 3, 1998, in the aggregate, the Company has repurchased 197,500
shares at an average market price of $7.12 per share.
The year 2000 data management issue, which has received wide spread publicity,
is not expected to have a material impact on the Company.
The first six months of fiscal 1998 and 1997 inventory turnover was 3.7x and
4.1x, respectively. The average days outstanding of the Company's accounts
receivable at December 31, 1997 was 54 days, as compared to 52 days at December
31, 1996. The Company did not experience any significant trade collection
difficulties during the first six months of fiscal 1998.
The Company believes that cash flow from operations and funds available under
its credit facility will be sufficient to fund the Company's capital needs for
at least the next twelve months.
INFLATION
Inflation has not had a significant impact on the Company's operations during
the last three fiscal years.
<PAGE>
FORM 10-Q December 31, 1997
Page 14
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
Nothing to Report
Item 2. Changes in Securities and Use of Proceeds
Nothing to Report
Item 3. Defaults Upon Senior Securities
Nothing to Report
Item 4. Submission of Matters to a Vote of Security Holders
Jaco's Annual Meeting of Shareholders was held on December 9,
1997. The Shareholders approved the following:
(i) The election of each of the nominees to the Board of
Directors:
Stephen A. Cohen For: 3,381,990 Withheld: 220,582
Edward M. Frankel For: 3,382,164 Withheld: 220,408
Charles B. Girsky For: 3,382,164 Withheld: 220,408
Joel H. Girsky For: 3,381,899 Withheld: 220,673
Joseph F.Hickey,Jr. For: 3,382,164 Withheld: 220,408
(ii) An amendment to the Company's 1993 Non-Qualified Stock
Option Plan (the "1993 Non-Qualified Plan") as amended, to
increase the aggregate number of shares of common stock,
$0.10 par value per share (the "Common Stock"), which may be
issued upon the exercise of the options granted under the
1993 Non-Qualified Plan from 293,333 shares of Common Stock
to 600,000 shares of Common Stock
For: 1,599,185 Against: 1,283,012 Abstention: 105,467
<PAGE>
FORM 10-Q December 31, 1997
Page 15
(iii)An amendment to the Company's 1993 Non-Qualified Plan to
incorporate certain provisions of Section 162(m) of the
Internal Revenue Code.
For: 2,478,299 Against: 835,956 Abstention: 105,011
(iv) The Company's Restricted Stock Plan.
For: 2,096,725 Against: 686,749 Abstention: 105,941
Item 5. Other Information
Nothing to Report
Item 6. Exhibits and Reports on Form 8-K
a) Exhibits:
27. Financial Data Schedule
b) Reports on Form 8-K: None
<PAGE>
S I G N A T U R E
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.
JACO ELECTRONICS, INC.
(Registrant)
BY: /s/ Jeffrey D. Gash
Jeffrey D. Gash, Vice President/ Finance
(Principal Financial Officer)
DATED: February 13, 1998
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted form the
unaudited condensed consolidated balance sheet as of December 31, 1997
and the unaudited condensed consolidated statement of earnings for the
six months ended December 31, 1997 and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-START> JUL-01-1997
<PERIOD-END> DEC-31-1997
<CASH> 476,724
<SECURITIES> 690,723
<RECEIVABLES> 24,277,367
<ALLOWANCES> 1,075,364
<INVENTORY> 32,280,464
<CURRENT-ASSETS> 58,755,809
<PP&E> 8,359,747
<DEPRECIATION> 2,815,894
<TOTAL-ASSETS> 70,252,200
<CURRENT-LIABILITIES> 17,937,447
<BONDS> 15,625,045
0
0
<COMMON> 406,572
<OTHER-SE> 36,283,136
<TOTAL-LIABILITY-AND-EQUITY> 70,252,200
<SALES> 76,666,428
<TOTAL-REVENUES> 76,666,428
<CGS> 60,650,643
<TOTAL-COSTS> 60,650,643
<OTHER-EXPENSES> 14,026,220
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 542,352
<INCOME-PRETAX> 1,447,213
<INCOME-TAX> 586,000
<INCOME-CONTINUING> 861,213
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 861,213
<EPS-PRIMARY> 0.22
<EPS-DILUTED> 0.22
</TABLE>
