FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
(MARK ONE)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
February 28, 1995
For the quarterly period ended ...........................................
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ................... to ....................
0-11631
Commission File Number ..........
JUNO LIGHTING, INC.
..........................................................................
(Exact name of registrant as specified in its charter)
Incorporated in Delaware 36-2852993
..........................................................................
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2001 South Mt. Prospect Ave., Des Plaines, Illinois 60017-5065
..........................................................................
(Address of principal executive offices) (Zip Code)
708 - 827 - 9880
..........................................................................
(Registrant's telephone number, including area code)
..........................................................................
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Sections 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 reports), and (2) has been subject to
such filing requirements for the past 90 days.
X
Yes ..... No .....
There were 18,486,812 common shares outstanding as of March 31, 1995.
<PAGE>
JUNO LIGHTING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
February 28, November 30,
ASSETS 1995 1994
(Unaudited) (Unaudited)
---------- -----------
CURRENT ASSETS:
Cash and cash equivalents $ 2 165 $ 4 605
Marketable securities 57 925 53 841
Accounts receivable, less
allowance for possible losses
of $798,000 and $781,000 22 292 19 673
Inventories at lower of cost or market 19 450 18 211
Prepaid expenses and miscellaneous 3 459 3 675
----------- ---------
TOTAL CURRENT ASSETS 105 291 100 005
----------- ---------
PROPERTY, PLANT AND EQUIPMENT,
less accumulated depreciation of
$9,936,000 and $9,377,000 31 442 31 195
---------- --------
OTHER ASSETS:
Marketable securities 9 803 9 861
Goodwill and other intangibles, net
of accumulated amortization of
$1,511,000 and $1,432,000 4 514 4 593
Miscellaneous 131 102
---------- --------
TOTAL OTHER ASSETS 14 448 14 556
---------- --------
$ 151 181 $ 145 756
========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 4 606 $ 3 419
Accrued liabilities 7 636 7 135
----------- ----------
TOTAL CURRENT LIABILITIES 12 242 10 554
----------- ----------
LONG-TERM DEBT & DEFERRED INCOME TAXES 8 359 8 454
----------- ----------
STOCKHOLDERS' EQUITY:
Common stock, $.01 par, shares
authorized 50,000,000;
outstanding 18,486,012 & 18,457,112 185 185
Paid-in-capital 4 135 3 922
Cumulative marketable securities
valuation adjustment < 389> -
Cumulative loss on foreign
currency translation < 316> < 273>
Retained earnings 126 965 122 914
----------- ------------
TOTAL STOCKHOLDERS' EQUITY 130 580 126 748
----------- -----------
$ 151 181 $ 145 756
=========== ============
(See Notes To Consolidated Financial Statements)
<PAGE>
JUNO LIGHTING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In Thousands Except Per
Share Amounts)
Three Months Ended
--------------------------
February 28, February 28,
1995 1994
(Unaudited) (Unaudited)
NET SALES $ 31 502 $ 27 678
COST OF SALES 15 944 13 490
----------- -----------
Gross profit 15 558 14 188
SELLING, GENERAL AND ADMINISTRATIVE 8 009 7 496
----------- ----------
Operating income 7 549 6 692
OTHER INCOME 784 750
----------- ----------
Income before taxes on income 8 333 7 442
TAXES ON INCOME 2 990 2 679
----------- ----------
NET INCOME $ 5 343 $ 4 763
=========== ==========
NET INCOME PER COMMON SHARE $0.29 $0.26
===== =====
(See Notes To Consolidated Financial Statements)
<PAGE>
JUNO LIGHTING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF RETAINED EARNINGS
(In Thousands)
Three Months Ended
February 28, 1995
(Unaudited)
RETAINED EARNINGS, beginning of period $ 122 914
CASH DIVIDEND ($0.07 per share) < 1 292>
NET INCOME, three months ended
February 28, 1995 5 343
-----------
RETAINED EARNINGS, end of period $ 126 965
===========
<PAGE>
JUNO LIGHTING, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOW
(In Thousands)
Three Months Ended
---------------------------
February 28, February 28,
1995 1994
(Unaudited) (Unaudited)
CASH FLOWS PROVIDED BY (USED IN) OPERATING
ACTIVITIES:
Net income $ 5 343 $ 4 763
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation & amortization 690 577
Changes in assets and liabilities:
(Increase) in accounts
receivable < 2 662> < 899>
(Increase) in inventory < 1 239> < 885>
Decrease in prepaid expense 445 110
(Increase) in other assets < 28> < 45>
Increase in accounts
payable and accrued expenses 1 688 1 559
(Decrease) Increase in
deferred taxes < 11> 21
------------ -----------
NET CASH PROVIDED BY OPERATING ACTIVITIES: 4 226 5 201
------------ -----------
CASH FLOWS PROVIDED BY (USED IN) INVESTING
ACTIVITIES:
Capital expenditures < 859> < 629>
Purchases of marketable securities < 17 941> < 8 877>
Sales of marketable securities 13 297 5 767
------------ ------------
NET CASH (USED IN) INVESTING
ACTIVITIES < 5 503> < 3 739>
------------ ------------
<PAGE>
JUNO LIGHTING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS (CONTINUED)
(In Thousands)
Three Months Ended
---------------------------
February 28, February 28,
1995 1994
(Unaudited) (Unaudited)
CASH FLOWS PROVIDED BY (USED IN) FINANCING
ACTIVITIES:
Proceeds from exercise of stock
options 213 176
Dividend paid < 1 292> < 1 103>
Principal payments on long-term debt < 84> < 112>
------------ ------------
NET CASH (USED IN) PROVIDED BY
FINANCING ACTIVITIES < 1 163> < 1 039>
------------ ------------
NET (DECREASE) INCREASE IN CASH < 2 440> 423
CASH AT BEGINNING OF PERIOD 4 605 1 840
----------- -----------
CASH AT END OF PERIOD $ 2 165 $ 2 263
=========== ===========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION:
Cash paid during the period for:
Interest $ 77 $ 88
Income taxes 919 771
(See Notes To Consolidated Financial Statements)
<PAGE>
JUNO LIGHTING, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FINANCIAL INFORMATION
The financial information presented in these consolidated financial
statements is unaudited but, in the opinion of management, reflects all
normal adjustments necessary for the fair presentation of the Company's
financial position, results of its operations and cash flows. The
information in the condensed consolidated balance sheet as of November 30,
1994 was derived from the from the Company's audited consolidated financial
statements.
On December 1, 1994, the Company adopted the provisions of
Statement of Financial Accounting Standards ("SFAS") No. 115, "Accounting
for Certain Investments in Debt and Equity Securities", which requires
the Company to record its investments in debt securities, consisting of
U.S. Government and municipal bond issues, as available-for-sale at market
value. Changes in market value for these securities are reported, net of tax,
in a separate component of stockholders' equity until realized. Prior to
adoption of SFAS No. 115, investments in debt securities were valued at the
lower of aggregate amortized cost or market. As a result of adopting
SFAS No. 115, a $ 1,011,000 unrealized loss, net of tax, was charged to
stockholders' equity at December 1, 1994. The adoption of this Statement
had no impact on net income for the quarter ended February 28, 1995, or
amounts reported in fiscal 1994.
INVENTORIES
Inventories are summarized as follows:
(In Thousands)
February 28, November 30,
1995 1994
------------ ------------
Finished goods $ 7 104 $ 7 548
Raw materials 12 346 10 663
----------- -----------
$ 19 450 $ 18 211
=========== ===========
NET INCOME PER COMMON SHARE
Net income per common share is calculated by dividing net income
by the weighted average number of common shares outstanding including
assumed exercise of stock options during the periods. Such weighted
average number of shares outstanding is as follows:
February 28, February 28,
1995 1994
3 months ended 18,563,608 18,544,503
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
RESULTS OF OPERATIONS:
Three Months Ended February 28, 1995 Compared With Three Months
Ended February 28, 1994
During the first quarter ended February 28, 1995, net
sales increased 13.8% to $31,502,000 compared to $27,678,000 for
the like period in 1994. Approximately one-third of this increase
was due to improvement in the sales through Indy Lighting, Inc.,
the Company's wholly-owned subsidiary that manufactures commercial
lighting fixtures for department stores and other retailers. The
remainder of the increase is primarily attributed to sales
promotions completed during the first quarter and a distributor price
increase effective in February, 1995 of approximately 2.2% expressed
on a weighted average basis on the company's Trac and Vector product
lines. Sales through Juno's Canadian subsidiary decreased 3.8% to
$1,440,000 for the quarter ended February 28, 1995, compared to
$1,497,000 for the like period in 1994.
Cost of sales as a percentage of net sales increased to
50.6% for the quarter, compared to 48.7% for the like period in
1994. Approximately one-half of the margin decrease was due to increased
sales discounts from a sales promotion that occured during the first
quarter with the remainder resulting from increases in employee health
insurance costs for the direct labor workforce.
Selling, general and administrative expenses as a
percentage of sales decreased to 25.4% of sales, compared to 27.1%
for the like period in 1994. This decrease was due primarily to
the relatively fixed nature of most of these costs over the higher
sales volume.
As a result of the above factors, operating income as a
percentage of sales for the quarter decreased slightly to 26.5%
compared to 26.9% for the like period in 1994.
LIQUIDITY AND CAPITAL RESOURCES:
During the three month period ended February 28, 1995,
the Company generated positive net cash flow from operating
activities of $4,226,000. This was comprised principally of net
income, depreciation and amortization, and an increase in accounts
payable ($7,721,000), net increases in accounts receivable
($2,662,000) and inventory ($1,239,000). The Company used the net
cash provided from operating activities to finance capital
expenditures of $859,000, increase its investment portfolio by
$4,644,000 and pay dividends of $1,292,000 ($.07 per common
share).
On March 3, 1995, the Company announced the declaration
of a cash dividend of 7 cents per share payable April 14, 1995, to
stockholders of record on March 15, 1995. The Board of Directors
intends to maintain regular quarterly dividends at the same rate.
Management believes that the existing level of working capital is
adequate for the Company's liquidity needs currently and in the
foreseeable future. It is currently anticipated that future
working capital requirements and capital expenditures will be met
by internally generated funds.
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings - None
Item 2. Changes in Securities - None
Item 3. Defaults Upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Security Holders - None
Item 5. Other Information - None
Item 6. (a) Exhibits - None
(b) During the quarter for which this report is filed, no
reports on Form 8-K were filed.
<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.
JUNO LIGHTING, INC.
By: George J. Bilek
George J. Bilek, Vice President Finance
(Principal Financial Officer)
Dated: April 14, 1995
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000723888
<NAME> JUNO LIGHTING, INC.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> NOV-30-1995
<PERIOD-END> FEB-28-1995
<CASH> 2165
<SECURITIES> 67728
<RECEIVABLES> 23090
<ALLOWANCES> 798
<INVENTORY> 19450
<CURRENT-ASSETS> 105291
<PP&E> 41378
<DEPRECIATION> 9936
<TOTAL-ASSETS> 151181
<CURRENT-LIABILITIES> 12242
<BONDS> 6320
<COMMON> 185
0
0
<OTHER-SE> 130395
<TOTAL-LIABILITY-AND-EQUITY> 151181
<SALES> 31502
<TOTAL-REVENUES> 31502
<CGS> 15944
<TOTAL-COSTS> 15944
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 62
<INTEREST-EXPENSE> 90
<INCOME-PRETAX> 8333
<INCOME-TAX> 2990
<INCOME-CONTINUING> 5343
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5343
<EPS-PRIMARY> .29
<EPS-DILUTED> .29
</TABLE>
