<PAGE>
______________________________________________________________
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended April 2, 1994
Commission File Number 0-16960
_______________
THE GENLYTE GROUP INCORPORATED
100 Lighting Way
Secaucus, N. J. 07096
(201) 864-3000
INCORPORATED IN DELAWARE I.R.S. EMPLOYER
IDENTIFICATION NO. 22-2584333
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
--- ---
THE NUMBER OF SHARES OUTSTANDING OF THE ISSUER'S COMMON STOCK AS OF APRIL 21,
1994 WAS 12,833,674.
______________________________________________________________
<PAGE>
THE GENLYTE GROUP INCORPORATED
FORM 10-Q
FOR THE QUARTER ENDED APRIL 2, 1994
INDEX
PART I. FINANCIAL INFORMATION
Consolidated Statements of Income for the three
months ended April 2, 1994 and April 3, 1993 . . . . . . . . . . 1
Consolidated Balance Sheets as of April 2, 1994
and December 31, 1993 . . . . . . . . . . . . . . . . . . . . . . 2
Consolidated Statements of Cash Flows for the three
months ended April 2, 1994 and April 3, 1993 . . . . . . . . . . . 3
Notes to Consolidated Interim Financial Statements . . . . . . . . 4
Management's Discussion and Analysis of
Financial Condition and Results of Operations . . . . . . . . . . 5
PART II. OTHER INFORMATION. . . . . . . . . . . . . . . . . . . . . . . . . . 6
Calculation of Primary and Fully Diluted
Earnings Per Share for the three months
ended April 2, 1994 and April 3, 1993 . . . . . . . . . . . . . . . 7
Signature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
<PAGE>
PART 1 FINANCIAL INFORMATION
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ITEM 1. FINANCIAL STATEMENTS
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<TABLE>
<CAPTION>
THE GENLYTE GROUP INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED APRIL 2, 1994 AND
APRIL 3, 1993
(000'S OMITTED, EXCEPT PER SHARE DATA)
(Unaudited)
1994 1993
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<S> <C> <C>
Net Sales
Cost of Sales $ 100,271 $ 106,556
69,401 $ 75,818
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Gross Profit 30,870 30,738
Selling, General and Administrative Expenses 25,741 26,430
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Operating Profit 5,129 4,308
Corporate Expenses 1,210 1,113
Interest Expense, net 1,630 2,082
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Income Before Income Taxes 2,289 1,113
Provision for Income Taxes 1,025 495
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Net Income $ 1,264 $ 618
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Earnings per Share $ .10 $ .05
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</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
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<PAGE>
<TABLE>
<CAPTION>
THE GENLYTE GROUP INCORPORATED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF APRIL 2, 1994 AND DECEMBER 31, 1993
(000'S OMITTED)
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(unaudited)
4/2/94 12/31/93
<S> <C> <C>
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ASSETS:
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Current Assets:
Cash and cash equivalents $ 2,225 $ 3,319
Accounts receivable, less allowances for 60,615 58,991
doubtful accounts of $3,723 and $3,765, respectively
Inventories:
Raw materials and supplies 32,329 29,570
Work in progress 10,062 11,519
Finished goods 44,312 42,754
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Total Inventories 86,703 83,843
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Other current assets 10,735 9,860
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Total current assets 160,278 156,013
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Property, plant and equipment, at cost 218,418 217,433
Less: accumulated depreciation and
amortization on plant and equipment 146,951 143,800
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Net property, plant and equipment 71,467 73,633
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Cost in excess of net assets of purchased businesses 12,298 12,336
Other assets 2,582 2,554
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TOTAL ASSETS $ 246,625 $ 244,536
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LIABILITIES & STOCKHOLDERS' INVESTMENT:
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Current Liabilities:
Current maturities of long-term debt $ 18,721 $ 7,060
Accounts payable 31,813 31,893
Accrued expenses 29,095 31,247
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Total current liabilities 79,629 70,200
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Long-term debt 85,282 93,359
Deferred income taxes 7,482 7,508
Other liabilities 12,920 12,627
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Total liabilities $ 185,313 $ 183,694
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Stockholders' Investment:
Common stock 128 128
Paid-in capital 9,881 9,881
Foreign currency translation adjustment (2,264) (1,470)
Retained earnings 53,567 52,303
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Total stockholders' investment 61,312 60,842
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TOTAL LIABILITIES AND STOCKHOLDERS' $ 246,625 $ 244,536
INVESTMENT
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</TABLE>
The accompanying notes are an integral part of these consolidated balance
sheets.
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<PAGE>
THE GENLYTE GROUP INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED APRIL 2, 1994 AND APRIL 3, 1993
(000'S OMITTED) (Unaudited)
<TABLE>
<CAPTION>
1994 1993
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CASH FLOWS FROM OPERATING ACTIVITIES:
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<S> <C> <C>
Net Income $ 1,264 $ 618
Adjustments to reconcile net income to net cash
flows provided (used) by operating activities:
Depreciation and amortization 4,079 4,450
(Increase) decrease in:
Accounts receivable (1,624) (4,941)
Inventories (2,860) (4,239)
Other current assets (875) (369)
Other assets (123) (171)
Increase (decrease) in:
Accounts payable and accrued expenses (2,232) (229)
Other liabilities 293 157
Deferred income Taxes (26) (11)
All other, net 1 20
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Net cash flows provided (used) by operating
activities (2,103) (4,715)
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CASH FLOWS FROM FINANCING ACTIVITIES:
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Purchase of treasury stock - (3)
Options exercised - 97
Increase/(decrease) in debt to outsiders 3,584 5,946
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Net cash flows provided (used) in financing 3,584 6,040
activities
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CASH FLOWS FROM INVESTING ACTIVITIES:
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Purchase of plant and equipment (2,223) (2,819)
Disposal of plant and equipment - -
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Net cash flows provided (used) in investing (2,223) (2,819)
activities
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EFFECT OF EXCHANGE RATE CHANGES (352) (36)
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Net increase in cash and cash
equivalents (1,094) (1,530)
Cash and cash equivalents at beginning of year 3,319 2,810
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Cash and cash equivalents at end of quarter $ 2,225 $ 1,280
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION - CASH PAID DURING THE THREE MONTH PERIOD FOR:
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Interest $ 1,540 $ 1,985
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Income taxes $ 1,196 $ 685
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</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
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<PAGE>
THE GENLYTE GROUP INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS
AS OF APRIL 2, 1994
(Unaudited)
1. Accounting Policies
The consolidated financial statements included in this report were prepared
in conformity with the accounting standards set forth in Accounting
Principles Board Opinion No. 28, "Interim Financial Reporting", as amended,
and the rules and regulations of the Securities and Exchange Commission
related to interim reporting. During the periods shown, there were no
changes in accounting principles or practices from those applied in prior
periods.
2. Consolidated Statement of Stockholders' Investment ($ in 000's):
<TABLE>
<CAPTION>
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Foreign
Additional Currency
Common Paid-in Translation Ad- Retained
Stock Capital justment Earnings
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<S> <C> <C> <C> <C>
Balance, December 31, 1993 $ 128 $ 9,881 $ (1,470) $52,303
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Net Income - - - 1,264
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Options Exercised - - - -
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Treasury Stock purchased - - - -
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Translation Adjustments - - (794) -
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Balance, April 2, 1994 $ 128 $ 9,881 $ (2,264) $53,567
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</TABLE>
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<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
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COMPARISON OF FIRST QUARTER 1994 TO FIRST QUARTER 1993
- ------------------------------------------------------
Net sales for the first quarter of 1994 were down $6.3 million, or 5.9%, from
the same quarter of 1993 due primarily to the DFT move from Cleveland, Ohio to
Elgin, Illinois. DFT's sales dropped $3.4 million as a result of transition
inefficiencies relating to training new staff and the installation and debugging
of a new automated inventory/sales system. The system is expected to be in full
operation in the second quarter of 1994. Sales for Lightolier were down $.9
million due primarily to planned pruning of low volume option variants in lower
margin fluorescent products in accordance with the Company's overall business
plan. In addition, the Canadian exchange rate decline of approximately 7 points
compared to the same quarter of 1993 resulted in a $.7 million decrease as
compared to the prior year, in U.S. dollars.
Gross profit increased to $30.9 million, or 30.8% of sales, as compared to $30.7
million, or 28.9% of sales in the first quarter of 1993. The improvement in
gross margin as a percentage of sales reflects the effective pruning of lower
margin fluorescent products in accordance with the Company's overall business
plan. Overhead costs were lower in conjunction with the continuing cost
reduction and facility actions started in 1993. Also, shifts in product mix and
favorable material variances had a positive impact on gross margin in the first
quarter of 1994.
Selling, General, and Administrative expenses for the first quarter of 1994 were
$25.7 million, or 25.7% of sales, as compared to $26.4 million, or 24.8% of
sales, in the same quarter of 1993. The $.7 million decrease in Selling,
General and Administrative expenses was partially offset by duplicate expenses
incurred by DFT during the move to Elgin.
Interest expense in the first quarter of 1994 was down $.5 million as compared
to 1993 due to lower average borrowings.
As a result of the above factors, net income and earnings per share improved by
$.7 million and $.05, respectively.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
Working capital was $80.7 million as of April 2, 1994, down $5.2 million from
year-end 1993, due primarily to an $11.7 million reclass of long-term debt to
current maturities. This reclass was partially offset by an increase in
accounts receivable and inventory.
Funds generated from operations plus amounts available under the existing loan
agreement and short-term credit lines are expected to be sufficient to fulfill
anticipated requirements.
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<PAGE>
PART II OTHER INFORMATION
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ITEM 1. LEGAL PROCEEDINGS
-----------------
The Genlyte Group Incorporated has been named as one of a number of
corporate and individual defendants in several actions commenced in
August 1993 in the U.S. District Court in New York. The actions are
on behalf of a purported class of alleged creditors of Keene
Corporation ("Keene"), seeking from the defendants damages of an
unspecified amount, rescission of certain asset sale and stock
transactions and other relief. With respect to Genlyte, the complaint
principally maintains that certain lighting assets of Keene were sold
to Genlyte in 1984 at less than fair value, while both Keene and
Genlyte were wholly-owned subsidiaries of Bairnco Corporation
("Bairnco"). The suits also allege that Genlyte, as well as the other
corporate defendants, were successors to and alter egos of Keene.
These cases are presently stayed by order of the United States
Bankruptcy Court due to the December 1993 filing by Keene of a
petition for reorganization pursuant to Chapter 11 of the Bankruptcy
Code.
The Genlyte purchase in 1984 was the subject of a "fairness" opinion
rendered by an internationally recognized investment banking firm as
to the consideration paid by Genlyte. In 1988, Genlyte became a
publicly owned company when Bairnco distributed all of its Genlyte
stock to Bairnco shareholders. Since 1988, Genlyte has functioned as
an independent public company.
Genlyte will vigorously defend against these actions.
ITEM 2. CHANGES IN SECURITIES
---------------------
Not Applicable.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
-------------------------------
Not Applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
---------------------------------------------------
Not Applicable.
ITEM 5. OTHER INFORMATION
-----------------
Not Applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
--------------------------------
(a) Exhibit 11 Calculation of Primary and Fully
Diluted Earnings Per Share
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<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
Genlyte has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
THE GENLYTE GROUP INCORPORATED
------------------------------
(Registrant)
Date: 5/16/94 /s/ Pat A. LaRosa
-------------------- -------------------------------
Pat A. LaRosa, Vice President &
Controller
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<PAGE>
Exhibit 11
THE GENLYTE GROUP INCORPORATED
CALCULATION OF PRIMARY AND FULLY DILUTED EARNINGS PER SHARE
FOR THE THREE MONTHS ENDED APRIL 2, 1994 AND APRIL 3, 1993
(000'S OMITTED, EXCEPT PER SHARE DATA)
(Unaudited)
<TABLE>
<CAPTION>
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1994 1993
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PRIMARY EARNINGS PER SHARE:
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<S> <C> <C>
Net Income $ 1,264 $ 618
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Average Common Shares Outstanding 12,732 12,731
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Common Shares Issuable in Respect to Common Stock Equivalents, with a
Dilutive Effect 0 146
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Total Common and Common Equivalent
Shares 12,732 12,877
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Primary Earnings per Share $ .10 $ .05
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FULLY DILUTED EARNINGS PER
SHARE:
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Net Income Applicable to Common
Stock and Common Stock Equivalents $ 1,264 $ 618
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Total Common and Common Equivalent
Shares 12,732 12,877
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Additional Common Shares Assuming
Full Dilution 0 39
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Total Common Shares Assuming
Full Dilution 12,732 12,916
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Fully Diluted Earnings per Share $ .10 $ .05
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</TABLE>
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