<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------------------------
FORM 10-Q/A-1
(Mark One) (X) Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities and Exchange Act of 1934
for the quarterly period ended October 31, 1997
or
( ) Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934.
_____________________________
Commission file number 0-2816
METHODE ELECTRONICS, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter.)
Delaware 36-2090085
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
7444 West Wilson Avenue, Harwood Heights, Illinois 60656
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(Registrant's telephone number, including area code) (708) 867-9600
--------------
None
- --------------------------------------------------------------------------------
(Former name, former address, former fiscal year, if changed since last report)
At December 8, 1997, Registrant had 34,263,132 shares of Class A Common
Stock and 1,199,754 shares of Class B Common Stock outstanding.
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(s)), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
----- -----
<PAGE>
PART I. FINANCIAL INFORMATION
- ------------------------------
Item 1. Financial Statements
Condensed Consolidated Balance Sheets
Methode Electronics, Inc. and Subsidiaries
<TABLE>
<CAPTION>
October 31, April 30,
1997 1997
---- ----
ASSETS (Unaudited)
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $ 21,719,504 $ 23,115,320
Accounts receivable - net 65,383,544 54,054,695
Inventories:
Finished products 9,535,875 7,347,088
Work in process 28,966,021 21,323,077
Materials 10,111,656 11,185,199
--------------- ---------------
48,613,552 39,855,364
Current deferred income taxes 2,971,000 2,831,000
Prepaid expenses 2,416,951 2,944,056
--------------- ---------------
TOTAL CURRENT ASSETS 141,104,551 122,800,435
PROPERTY, PLANT AND EQUIPMENT 187,004,998 179,050,393
Less allowance for depreciation 105,434,030 98,954,082
--------------- ---------------
81,570,968 80,096,311
GOODWILL - net 38,042,057 35,190,298
INTANGIBLE BENEFIT PLAN ASSET 2,600,195 2,934,061
OTHER ASSETS 13,699,881 12,469,978
--------------- ---------------
$277,017,652 $253,491,083
=============== ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts and notes payable $ 30,553,539 $ 25,559,239
Other current liabilities 21,548,897 18,979,585
--------------- ---------------
TOTAL CURRENT LIABILITIES 52,102,436 44,538,824
OTHER LIABILITIES 2,376,259 2,464,519
DEFERRED COMPENSATION 6,994,538 6,964,135
ACCUMULATED BENEFIT PLAN OBLIGATION 2,471,318 2,326,248
SHAREHOLDERS' EQUITY
Common Stock 17,829,719 17,744,672
Paid in capital 20,598,808 18,040,963
Retained earnings 176,306,949 161,225,847
Other shareholders' equity (1,662,375) 185,875
--------------- ---------------
213,073,101 197,197,357
--------------- ---------------
$277,017,652 $253,491,083
=============== ===============
</TABLE>
See notes to condensed consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
METHODE ELECTRONICS, INC. AND SUBSIDIARIES
Three Months Ended October 31, Six Months Ended October 31,
----------------------------- ---------------------------
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
INCOME:
Net sales $ 99,934,242 $ 85,188,636 $ 191,832,560 $164,154,346
Other 1,337,801 1,350,577 2,469,989 2,729,460
------------ ------------ ------------- ------------
Total 101,272,043 86,539,213 194,302,549 166,883,806
COSTS AND EXPENSES:
Cost of products sold 73,488,813 61,319,492 140,263,464 118,960,006
Selling and administrative expenses 13,205,915 10,890,695 25,370,515 20,980,186
------------ ------------ ------------- ------------
Total 86,694,728 72,210,187 165,633,979 139,940,192
------------ ------------ ------------- ------------
Income before income taxes 14,577,315 14,329,026 28,668,570 26,943,614
Provision for income taxes 5,105,000 5,230,000 10,040,000 9,835,000
------------ ------------ ------------- ------------
NET INCOME $ 9,472,315 $ 9,099,026 $ 18,628,570 $ 17,108,614
============ ============ ============= ============
Weighted average number of Common
Shares outstanding 35,338,000 35,218,000 35,318,000 35,194,000
Earnings per Common Share $ 0.27 $ 0.26 $ 0.53 $ 0.49
============ ============ ============= ============
Cash dividends per Common Share $ 0.05 $ 0.05 $ 0.10 $ 0.10
</TABLE>
See notes to condensed consolidated financial statements.
<PAGE>
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
METHODE ELECTRONICS, INC. AND SUBSIDIARIES
<TABLE>
<CAPTION>
Six Months Ended October 31,
---------------------------
1997 1996
---- ----
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 18,628,570 $ 17,108,614
Provision for depreciation
and amortization 9,120,573 6,812,400
Changes in operating assets
and liabilities (13,544,328) (4,465,649)
Other 1,630,351 721,538
------------- ------------
NET CASH PROVIDED BY
OPERATING ACTIVITIES 15,835,166 20,176,903
INVESTING ACTIVITIES
Purchases of property, plant and
equipment (9,878,728) (11,796,856)
Acquisitions (3,710,865)
Other (2,234,041) 1,485,125
------------- ------------
NET CASH USED IN
INVESTING ACTIVITIES (15,823,634) (10,311,731)
FINANCING ACTIVITIES
Dividends (3,547,468) (3,533,614)
Other 2,140,120 (333,355)
------------- ------------
NET CASH USED IN
FINANCING ACTIVITIES (1,407,348) (3,866,969)
------------- ------------
INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS (1,395,816) 5,998,203
Cash and cash equivalents at
beginning of period 23,115,320 50,185,934
------------- ------------
CASH AND CASH EQUIVALENTS
AT END OF PERIOD $ 21,719,504 $ 56,184,137
============= ============
See notes to condensed consolidated financial statements.
</TABLE>
<PAGE>
METHODE ELECTRONICS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
OCTOBER 31, 1997
NOTE 1. BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and Article
10 of Regulation S-X. Accordingly, they do not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the three-month and six-month periods
ended October 31, 1997 are not necessarily indicative of the results that may be
expected for the year ending April 30, 1998. For further information, refer to
the consolidated financial statements and footnotes thereto included in the
Company's annual report on Form 10-K for the year ended April 30, 1997.
NOTE 2. ACQUISITION
Effective May 5, 1997, the Company, using available cash balances,
purchased all of the outstanding shares of Adam Technologies, a designer and
marketer of electronic connectors. The acquisition, which may require
additional contingent consideration if certain performance targets are attained,
was accounted for using the purchase method of accounting and the results of
operations of Adam Technologies have been included in the Company's consolidated
financial statements from the date of acquisition.
<PAGE>
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.
Methode Electronics, Inc.
By: Kevin J. Hayes
--------------------------------
Kevin J. Hayes
Chief Financial Officer
Dated: December 19, 1997
-----------------
