<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Quarterly Report under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended: March 31, 2000
Commission File Number: 1-9764
HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 11-2534306
- ---------------------------------- ---------------------------------------
(State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or organization)
1101 PENNSYLVANIA AVENUE, NW WASHINGTON, D.C. 20004
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
(202) 393-1101
----------------------------------------------------
(Registrant's telephone number, including area code)
NOT APPLICABLE
----------------------------------------------------
(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 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 reports), and (2) has been
subject to such filing requirements for the past 90 days.
YES X NO
------- -------
Indicate the number of shares outstanding of each of the registrant's
classes of common stock, as of the latest practicable date.
17,079,274 shares of Common Stock, $.01 par value, at April 30, 2000.
<PAGE>
HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED
AND SUBSIDIARIES
INDEX
PART I. FINANCIAL INFORMATION PAGE NO.
Item 1. Financial Statements
Condensed Consolidated Balance Sheets -
March 31, 2000 and June 30, 1999 3
Condensed Consolidated Statements of Operations -
Three and nine months ended March 31, 2000 and 1999 4
Condensed Consolidated Statements of Cash Flows -
Nine months ended March 31, 2000 and 1999 5
Notes to Condensed Consolidated Financial Statements 6-10
Item 2. Management's Discussion and Analysis of the
Results of Operations and Financial Condition 11-14
PART II. OTHER INFORMATION 15
SIGNATURES 16
2
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
MARCH 31, 2000 AND JUNE 30, 1999
(000s omitted except per share amounts)
<TABLE>
<CAPTION>
ASSETS 03/31/00 06/30/99
-------------- --------------
<S> <C> <C>
Current assets
Cash and cash equivalents $ 6,306 2,963
Receivables (less allowance for doubtful
accounts of $10,677 at March 31,
2000 and $8,732 at June 30, 1999) 317,777 303,371
Inventories 303,604 280,115
Other current assets 47,644 60,160
-------------- --------------
Total current assets 675,331 646,609
-------------- --------------
Property, plant and equipment, net 244,502 241,063
Excess of cost over fair value of assets
acquired, net 162,937 140,824
Other assets 40,751 37,259
-------------- --------------
Total assets $ 1,123,521 1,065,755
-------------- --------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings $ 9,652 19,411
Current portion of long-term debt 9,455 11,750
Accounts payable 133,120 120,116
Accrued liabilities 161,372 135,544
-------------- --------------
Total current liabilities 313,599 286,821
-------------- --------------
Borrowings under revolving credit
facility 69,141 34,375
Senior long-term debt 237,131 246,039
Other non-current liabilities 29,409 29,585
Minority interest 829 748
Shareholders' equity
Common stock, $.01 par value 188 187
Additional paid-in capital 292,257 290,873
Other comprehensive income (loss):
Cumulative translation adjustment (52,777) (41,885)
Retained earnings 299,917 252,989
Less common stock held in treasury (66,173) (33,977)
-------------- --------------
Total shareholders' equity 473,412 468,187
-------------- --------------
Total liabilities and shareholders' equity $ 1,123,521 1,065,755
-------------- --------------
</TABLE>
See accompanying Notes to Condensed Consolidated Financial Statements.
3
<PAGE>
HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2000 AND 1999
(000s omitted except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
March 31, March 31,
2000 1999 2000 1999
---------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
Net sales $ 423,931 374,904 1,231,530 1,078,318
Cost of sales 299,752 269,943 884,617 805,175
---------- ---------- ---------- -----------
Gross profit 124,179 104,961 346,913 273,143
Selling, general and administrative 87,335 80,581 260,198 230,737
Plant closures and severance -- -- -- 17,010
Asset impairment -- -- -- 20,054
---------- ---------- ---------- -----------
Operating income 36,844 24,380 86,715 5,342
Other expense:
Interest expense 4,917 6,724 14,624 18,711
Miscellaneous, net 489 (403) 1,464 559
---------- ---------- ---------- -----------
Income (loss) before income taxes 31,438 18,059 70,627 (13,928)
Income tax expense (benefit) 9,121 5,242 21,109 (4,674)
---------- ---------- ---------- -----------
Net income (loss) $ 22,317 12,817 49,518 (9,254)
---------- ---------- ---------- -----------
Basic earnings (loss) per share $ 1.30 0.72 2.87 (0.52)
---------- ---------- ---------- -----------
Diluted earnings (loss) per share $ 1.26 0.72 2.81 (0.52)
---------- ---------- ---------- -----------
Weighted average shares
outstanding - basic 17,166 17,704 17,275 17,954
---------- ---------- ---------- -----------
Weighted average shares
outstanding - diluted 17,732 17,857 17,636 17,954
---------- ---------- ---------- -----------
</TABLE>
See accompanying Notes to Condensed Consolidated Financial Statements.
4
<PAGE>
HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED MARCH 31, 2000 AND 1999
($000s omitted)
<TABLE>
<CAPTION>
2000 1999
------------- -------------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 49,518 (9,254)
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation 41,042 41,967
Amortization of intangible assets 6,175 5,274
Special charges, net of cash paid --- 61,136
Changes in working capital, net of acquisition/
disposition effects:
(Increase) decrease in:
Receivables (4,210) (1,212)
Inventories (11,774) (34,352)
Other current assets 12,648 (1,081)
Increase (decrease) in:
Accounts payable 8,239 (20,582)
Accrued liabilities 16,886 (29,886)
------------- -------------
Net cash provided by operating activities $ 118,524 12,010
------------- -------------
Cash flows from investing activities:
Payment for purchase of companies,
net of cash acquired $ (49,683) (568)
Net proceeds from disposition of assets 7,134 ---
Capital expenditures (48,426) (53,823)
Issuance of loans, net (1,964) (16,240)
Other items, net 1,748 1,654
------------- -------------
Net cash used in investing activities $ (91,191) (68,977)
------------- -------------
Cash flows from financing activities:
Borrowings on (repayments of) lines of credit $ (9,362) 420
Net proceeds from issuance of long-term debt 18,773 81,551
Repurchase of common stock (32,196) (33,977)
Dividends paid to shareholders (2,590) (2,702)
Proceeds from exercise of stock options 1,385 823
------------- -------------
Net cash flow (used in) provided by
financing activities $ (23,990) 46,115
------------- -------------
Net increase (decrease) in cash and
cash equivalents 3,343 (10,852)
Cash and cash equivalents
at beginning of period 2,963 16,204
------------- -------------
Cash and cash equivalents at end of period $ 6,306 5,352
------------- -------------
Supplemental disclosures of cash flow information:
Interest paid $ 17,348 21,697
Income taxes paid $ 12,105 3,823
Supplemental schedule of non-cash
investing activities:
Fair value of assets acquired $ 68,084 1,672
Cash paid for the assets 49,683 568
------------- -------------
Liabilities assumed $ 18,401 1,104
------------- -------------
</TABLE>
See accompanying Notes to Condensed Consolidated Financial Statements.
5
<PAGE>
HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED
AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
NOTE A - BASIS OF PRESENTATION
The Company's Condensed Consolidated Financial Statements as of
March 31, 2000, and for the three and nine months ended March 31,
2000 and 1999, have not been audited by the Company's independent
auditors; however, in the opinion of management, the accompanying
unaudited Condensed Consolidated Financial Statements contain all
adjustments (consisting of only normal recurring accruals) necessary to
present fairly the consolidated financial position of the Company and
subsidiaries as of March 31, 2000 and the results of their operations and
their cash flows for the periods presented.
Where necessary, prior years' information has been reclassified to
conform to the current year consolidated financial statement
presentation.
These financial statements should be read in conjunction with the
consolidated financial statements and related notes thereto included in
the Company's Annual Report on Form 10-K for the year ended June
30, 1999.
The results of operations for the three and nine months ended March 31,
2000, are not necessarily indicative of the results to be expected for the
full year.
NOTE B - COMPREHENSIVE INCOME
Comprehensive income and its components for the three and nine
months ended March 31, 2000 and 1999 are presented below.
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
March 31, March 31,
(Dollars in thousands) 2000 1999 2000 1999
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
Net income (loss) $ 22,317 12,817 49,518 (9,254)
Foreign currency
translation adjustments (8,219) (12,038) (10,892) (4,521)
------------ ------------ ------------ -----------
Total comprehensive income (loss) $ 14,098 779 38,626 (13,775)
------------ ------------ ------------ -----------
</TABLE>
6
<PAGE>
HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED
AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
NOTE C - EARNINGS PER SHARE INFORMATION
<TABLE>
<CAPTION>
Three Months Ended March 31,
2000 1999
--------------------- ----------------------
(000's omitted except per share amounts) Basic Diluted Basic Diluted
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net income $ 22,317 22,317 12,817 12,817
--------- --------- --------- ---------
Weighted average shares
outstanding 17,166 17,166 17,704 17,704
Employee stock options -- 566 -- 153
--------- --------- --------- ---------
Total weighted average
shares outstanding 17,166 17,732 17,704 17,857
--------- --------- --------- ---------
Earnings per share $ 1.30 1.26 0.72 0.72
--------- --------- --------- ---------
</TABLE>
<TABLE>
<CAPTION>
Nine Months Ended March 31,
2000 1999
--------------------- -----------------------
(000's omitted except per share amounts) Basic Diluted Basic Diluted
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net income (loss) $ 49,518 49,518 (9,254) (9,254)
--------- --------- --------- ---------
Weighted average shares
outstanding 17,275 17,275 17,954 17,954
Employee stock options -- 361 -- --
--------- --------- --------- ---------
Total weighted average
shares outstanding 17,275 17,636 17,954 17,954
--------- --------- --------- ---------
Earnings (loss) per share $ 2.87 2.81 (0.52) (0.52)
--------- --------- --------- ---------
</TABLE>
Employee stock options have been excluded from the net loss per share
calculation for the nine months ended March 31, 1999, because their
effect would be anti-dilutive.
7
<PAGE>
HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED
AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
NOTE D - RESTRUCTURING
In last year's second quarter, the Company implemented a restructuring
program designed to improve the profitability of the consumer business
and other operations. The Company implemented a program to:
(1) realign the consumer audio dealer and distribution structure to
strengthen the positioning of our various brands, (2) significantly
reduce the number of marginally profitable product lines, and
(3) significantly reduce overhead as a result of weakening consumer
market conditions. The Company also implemented overhead reduction
programs and eliminated product lines in certain professional
businesses. These actions resulted in pretax charges totaling $66.4
million. The components of the charges and costs incurred through
March 31, 2000 are shown below:
<TABLE>
<CAPTION>
Charges to
Charges to Reserves
Reserves Nine Months
Original Through Ended Remaining
($ in millions) Provision June 1999 March 2000 Balance
--------- --------- ---------- ---------
<S> <C> <C> <C> <C>
Plant closures
and severance $ 17.0 14.7 1.5 0.8
Asset impairment 20.0 18.7 1.2 0.1
Inventories 24.3 11.9 11.4 1.0
Other 5.1 5.1 0.0 0.0
--------- --------- ---------- ---------
Total $ 66.4 50.4 14.1 1.9
--------- --------- ---------- ---------
</TABLE>
8
<PAGE>
HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED
AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
NOTE E - SEGMENTATION
The Company is engaged in the design, manufacture and marketing of
high fidelity audio products. Our businesses are organized based on the
end-user markets served - consumer and professional.
The Consumer Systems Group manufactures loudspeakers and
electronics for high fidelity audio and video reproduction in the home,
with computers and in vehicles. Home applications include two
channel audio, multi-channel audio/video and personal computer audio.
Vehicle applications include audio, video, navigation and multi-media.
Consumer products are marketed under brand names including JBL,
Harman Kardon, Infinity, Becker, Revel, Mark Levinson and Proceed.
The Professional Group manufactures loudspeakers and electronics
used by audio professionals in concert halls, cinemas, recording studios,
broadcasting operations and live music events. Professional products
are marketed worldwide under brand names including JBL, AKG,
Lexicon, Soundcraft, Studer, DOD, Crown, Digitech and dbx.
The following table reports external sales and operating income by
segment:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
March 31, March 31,
($000s omitted) 2000 1999 2000 1999
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net sales:
Consumer Systems Group $ 308,775 272,033 895,469 773,512
Professional Group 115,156 102,871 336,061 304,773
Other -- -- -- 33
------------ ------------ ------------ ------------
Total $ 423,931 374,904 1,231,530 1,078,318
------------ ------------ ------------ ------------
Operating income:
Consumer Systems Group $ 30,098 23,232 76,160 64,171
Professional Group 10,195 4,081 20,618 10,898
Other (3,449) (2,933) (10,063) (3,281)
Restructuring charges -- -- -- (66,446)
------------ ------------ ------------ ------------
Total $ 36,844 24,380 86,715 5,342
------------ ------------ ------------ ------------
</TABLE>
Other operating income (loss) is primarily comprised of corporate expenses
net of subsidiary allocations.
9
HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED
AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
NOTE F - INVENTORIES
Inventories consist of the following:
<TABLE>
<CAPTION>
March 31, June 30,
($000's omitted) 2000 1999
-------------- --------------
<S> <C> <C>
Finished goods and inventory
purchased for resale $ 136,195 138,007
Work in process 39,118 37,317
Raw materials and supplies 128,291 104,791
-------------- --------------
Total inventories $ 303,604 280,115
-------------- --------------
</TABLE>
NOTE G - ACQUISITIONS
In December 1999, the Company acquired Innovative Systems GmbH
(IS), a leading developer of route guidance, positioning and navigation
systems software located in Hamburg, Germany. The acquisition was
recorded using the purchase method of accounting. The acquisition of
IS was not material to the consolidated financial statements.
In March 2000, the Company acquired Crown International (Crown), a
leading manufacturer of professional amplifiers located in Elkhart,
Indiana. The acquisition was recorded using the purchase method of
accounting. The acquisition of Crown was not material to the
consolidated financial statements.
10
<PAGE>
HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED
AND SUBSIDIARIES
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
RESULTS OF OPERATIONS
- ---------------------
COMPARISON OF THE THREE AND NINE MONTH PERIODS ENDED
MARCH 31, 2000 AND 1999
Net sales for the third quarter ended March 31, 2000 increased 13
percent to $423.9 million. Sales in the third quarter last year totaled
$374.9 million. Exclusive of currency effects, sales rose 19 percent in
the quarter. For the nine months ended March 31, 2000, sales rose 14
percent to $1.232 billion. Sales in the same period last year totaled
$1.078 billion. Exclusive of currency effects, sales increased 19 percent
for the first nine months.
The Consumer Systems Group reported sales of $308.8 million for the
quarter, an increase of 14 percent over the prior year. Operating income
increased 30 percent to $30.1 million. Sales to consumer audio dealers
and distributors approximated last year's, reflecting higher sales in
North America offset by lower international sales due to continuing
efforts to reduce inventories in international distribution channels. Sales
to the automakers increased over the prior year. Higher shipments of
premium branded audio systems to Mitsubishi and Toyota contributed
to the growth. In Europe, Becker reported strong growth due to the
introduction of navigation systems in Mercedes Benz vehicles and
robust aftermarket activity in Becker navigation systems. Sales to
personal computer manufacturers more than doubled in the quarter,
reflecting higher shipments of Harman Kardon systems to Dell and
Apple and higher shipments of JBL systems to Compaq.
The Consumer Systems Group reported a 16 percent increase in sales
for the nine months ended March 31, 2000. Sales totaled $895.5
million, compared to $773.5 million in the same period last year.
Operating income excluding restructuring charges increased 19 percent
to $76.2 million. Sales to consumer audio dealers and distributors
increased slightly, driven by higher sales in North America offset by
lower international sales due to the continuing international dealer
destocking program. Sales to the automakers increased over last year.
Higher shipments of Infinity audio systems to Chrysler and Mitsubishi
and increases in our JBL branded audio system business with Toyota
contributed to the growth. In Europe, Becker reported vigorous
11
<PAGE>
growth due to the introduction of navigation systems in Mercedes Benz
vehicles and accelerating navigation system sales to aftermarket dealers.
Sales to personal computer manufacturers more than tripled in the
period, resulting from higher shipments of Harman Kardon systems to
Dell and Apple and increased JBL system shipments to Compaq.
The Professional Group reported sales of $115.2 million for the quarter,
a 12 percent increase over the prior year. Operating income more than
doubled to $10.2 million. Virtually all of our professional audio brands
reported solid sales growth in the quarter. Driven by significant growth
in transducer shipments to Kyocera, Nokia and Mercedes Benz for
hands-free and wireless telephones, AKG sales rose 26 percent.
The Professional Group reported a 10 percent increase in sales for the
nine months ended March 31, 2000. Sales totaled $336.1 million,
compared to $304.8 million in the same period last year. Operating
income excluding restructuring charges increased 89 percent to $20.6
million. Virtually all of our professional audio brands, including AKG,
JBL Professional and Lexicon, reported strong sales growth for the nine
months ended March 31, 2000. AKG reported a 26 percent increase in
sales for the period due to major growth in transducer shipments to
Kyocera, Nokia and Mercedes Benz for hands-free and wireless
telephones.
The gross profit margin for the quarter ended March 31, 2000 was 29.3
percent ($124.2 million) compared to 28.0 percent ($105.0 million) in
last year's third quarter. The gross profit margin for the nine months
ended March 31, 2000 was 28.2 percent ($346.9 million) compared to
25.3 percent ($273.1 million) in the previous year. Excluding charges
totaling $24.3 million recorded in the quarter ended December 31,
1998, gross profit margin for the nine months ended March 31, 1999
was 27.6 percent ($297.4 million). Gross margins increased due to
changes in sales mix, higher sales and improved factory leverage.
Selling, general and administrative costs were 20.6 percent of sales
($87.3 million) for the three months ended March 31, 2000, compared
to 21.5 percent ($80.6 million) for the same period last year. For the
nine months ended March 31, 2000, selling, general and administrative
costs were 21.1 percent of sales ($260.2 million) compared to 21.4
percent ($230.7 million) for the same period last year. Through March
31, 2000, selling, general and administrative expenses have increased at
rates comparable to the growth in sales.
12
<PAGE>
Operating income as a percentage of sales was 8.7 percent ($36.8
million) for the quarter ended March 31, 2000, compared to 6.5 percent
($24.4 million) for the same period in the prior year. For the first nine
months, operating income as a percentage of sales was 7.0 percent
($86.7 million) compared to 0.5 percent ($5.3 million) in the prior year.
Excluding restructuring charges, operating income as a percent of sales
for the nine months ended March last year was 6.7 percent ($71.8
million). Operating income has increased due to growth in sales and
margins.
Interest expense for the three months ended March 31, 2000 was $4.9
million compared to $6.7 million in the same quarter last year. For the
nine months ended March 31, 2000, interest expense was $14.6 million,
compared to $18.7 million last year. Interest expense declined due to
lower borrowings. Average borrowings outstanding were $319.8
million for the third quarter of fiscal 2000 and $332.3 million for the
first nine months, down from $433.8 million and $408.3 million,
respectively, for the same periods in the prior year. Average
borrowings decreased due to strong positive operating cash flows.
The weighted average interest rate on borrowings of 6.2 percent for the
third quarter and 5.9 percent for the nine months ended March 31, 2000,
approximated last year's 6.2 percent and 6.1 percent for the same
periods.
Income before income taxes for the third quarter was $31.4 million,
compared to $18.1 million in the same period last year. For the nine
months ended March 31, 2000, income before income taxes was $70.6
million, compared to a loss of $13.9 million in the same period last
year.
The effective tax rate for the third quarter of fiscal 2000 was
29.0 percent, equal to the rate reported for the same period a year ago.
The effective tax rate for the first nine months of fiscal 2000 was 30.0
percent compared with 33.6 percent last year. The effective tax rates
were below the U.S. statutory rate due to utilization of tax credits,
realization of certain tax benefits for United States exports and the
utilization of tax loss carryforwards at certain foreign subsidiaries.
The Company calculates its effective tax rate based upon its current
estimate of annual results.
Net income for the three months ended March 31, 2000 was $22.3
million, compared to income of $12.8 million reported for the same
period last year. Net income for the nine months ended March 31, 2000
was $49.5 million, compared to a net loss of $9.3 million in the prior
year.
13
<PAGE>
Basic earnings per share for the three months ended March 31, 2000
were $1.30, and diluted earnings per share were $1.26. In the same
period last year, basic and diluted earnings per share were $0.72.
Basic earnings per share for the nine months ended March 31, 2000
were $2.87, and diluted earnings per share were $2.81. For the same
period last year, basic and diluted loss per share were $0.52. Excluding
the restructuring charge of $66.4 million ($45.9 million after-tax), net
income last year was $36.6 million, equal to $2.04 per share, for the
nine months ended March.
FINANCIAL CONDITION
- ---------------------------------
Net working capital at March 31, 2000 was $361.7 million, compared
with $359.8 million at June 30, 1999. Working capital increased slightly
due to aquisitions and sales growth.
The Company continued its common stock repurchase program.
Through the nine months ended March 31, 2000, the Company acquired
and placed in treasury 712,500 shares of its common stock at a total cost
of $32.2 million.
Borrowings under the revolving credit facility at March 31, 2000 were
$70.3 million, comprised of swing line borrowings of $1.2 million,
which were included in short term borrowings, and competitive advance
borrowings and revolving credit borrowings of $69.1 million.
Borrowings under the revolving credit facility at June 30, 1999 were
$41.2 million, comprised of swing line borrowings of $6.8 million and
competitive advance borrowings and revolving credit borrowings of
$34.4 million. Borrowings under the revolving credit facility increased
due to capital expenditures and the acquisitions of IS and Crown, offset
by strong positive operating cash flows.
Except for historical information contained herein, the matters
discussed are forward-looking statements which involve risks
and uncertainties that could cause actual results to differ
materially from those suggested in the forward-looking
statements, including, but not limited to, the effect of
economic conditions, product demand, currency exchange rates,
labor disputes, competitive products and other risks detailed in
the Company's other Securities and Exchange Commission
filings.
14
<PAGE>
HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED
AND SUBSIDIARIES
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
There are various legal proceedings pending against the
registrant and its subsidiaries, but, in the opinion of
management, liabilities, if any, arising from such claims will
not have a materially adverse effect upon the consolidated
financial condition of the registrant.
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. Exhibits and Reports on Form 8-K
(a) Exhibits required by Item 601 of Regulation S-K
None.
(b) Reports on Form 8-K
None.
15
<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.
HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED
(Registrant)
DATE: May 12, 2000 BY: /s/ Bernard A. Girod
--------------------------
Bernard A. Girod
Chief Executive Officer
DATE: May 12, 2000 BY: /s/ Frank Meredith
--------------------------
Frank Meredith
Vice President of Finance
and Administration, Chief
Financial Officer and
Secretary
16
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> MAR-31-2000
<CASH> 6246
<SECURITIES> 60
<RECEIVABLES> 328454
<ALLOWANCES> 10677
<INVENTORY> 303604
<CURRENT-ASSETS> 675331
<PP&E> 491446
<DEPRECIATION> 246944
<TOTAL-ASSETS> 1113521
<CURRENT-LIABILITIES> 303599
<BONDS> 306272
<COMMON> 188
0
0
<OTHER-SE> 473224
<TOTAL-LIABILITY-AND-EQUITY> 1113521
<SALES> 1231530
<TOTAL-REVENUES> 1231530
<CGS> 686224
<TOTAL-COSTS> 884617
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 4190
<INTEREST-EXPENSE> 14624
<INCOME-PRETAX> 70627
<INCOME-TAX> 21109
<INCOME-CONTINUING> 49518
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 49518
<EPS-BASIC> 2.87
<EPS-DILUTED> 2.81
</TABLE>
