SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 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: 0-22352
HOLOPHANE CORPORATION
____________________________________________________________
(Exact name of registrant as specified in its charter)
Delaware 31-1288751
_______________________________ ___________________
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
250 East Broad Street
Suite 1400
Columbus, Ohio
43215
____________________________________________________
(Address of principal executive offices)
(614) 224-3134
____________________________________________________
Registrant's telephone number, including area code
Indicate by check mark whether the registrant (1) has filed all reports to
be filed by Section 13 or Section 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 registrant's Common Stock as of March
31, 1997: 11,355,418
<PAGE>
HOLOPHANE CORPORATION
FORM 10-Q
FOR THE QUARTER ENDED MARCH 31, 1997
INDEX
PART I. FINANCIAL INFORMATION
Condensed Consolidated Statements of Income for the
three months ended March 31, 1997 and March 31, 1996
(unaudited)................................................... 1
Condensed Consolidated Balance Sheets as of March 31,
1997 (unaudited) and December 31, 1996........................ 2
Condensed Consolidated Statements of Cash Flows for the
three months ended March 31, 1997 and March 31, 1996
(unaudited)................................................... 3
Condensed Consolidated Statement of Stockholders' Equity
as of March 31, 1997 (unaudited).............................. 4
Notes to Condensed Consolidated Financial Statements.......... 5
Management Discussion and Analysis...................... 6
PART II. OTHER INFORMATION....................................... 7
Signature............................................... 8
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<PAGE>
HOLOPHANE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(in thousands except per share data)
Three Month Period Ended
_________________________
March 31, March 31,
1997 1996
________________________________________________________________________________
Net Sales $ 46,408 $ 38,056
Cost of Goods Sold 28,526 24,144
-------- --------
Gross Margin 17,882 13,912
Selling and Administrative Expenses 10,871 8,937
Research and Development 1,467 1,435
Other Expenses 168 (37)
-------- --------
Operating Income 5,376 3,577
Interest Expense 478 576
Interest Income (97) (170)
-------- --------
Income Before Income Taxes 4,995 3,171
Provision for Income Taxes 1,885 1,218
-------- --------
Net Income 3,110 1,953
================================================================================
Primary Earnings Per Share $ 0.26 $ 0.17
- --------------------------------------------------------------------------------
Fully Diluted Earnings Per Share $ 0.26 $ 0.17
- --------------------------------------------------------------------------------
Weighted Average Number of Shares Outstanding 11,794 11,824
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these consolidated financial
statements.
-3-
<PAGE>
HOLOPHANE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
($ in thousands) (Unaudited)
March 31 December 31
1997 1996
- --------------------------------------------------------------------------------
Assets
- --------------------------------------------------------------------------------
Cash and Equivalents $ 8,888 $ 8,072
Receivables 28,672 33,104
Inventory 13,571 13,302
Prepaid and Other Deferred Expenses 3,707 3,848
- ------------------------------------------------------------------------------
Total Current Assets 54,838 58,326
- ------------------------------------------------------------------------------
Property, Plant and Equipment, Net 38,966 39,413
Goodwill 20,806 21,276
Other Assets 5,650 4,952
- ------------------------------------------------------------------------------
Total Assets $120,260 $123,967
==============================================================================
Liabilities and Stockholders' Equity
- ------------------------------------------------------------------------------
Current Liabilities $ 29,743 $ 31,137
Long Term Debt 15,714 18,866
Other Long Term Liabilities 6,757 6,820
Stockholders' Equity 68,046 67,144
- ------------------------------------------------------------------------------
Total Liabilities and Stockholders' Equity $120,260 $123,967
==============================================================================
The accompanying notes are an integral part of these consolidated financial
statements.
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<PAGE>
HOLOPHANE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited $ in thousands)
Three Month Period Ended
March 31, March 31,
1997 1996
- --------------------------------------------------------------------------------
Net cash flow provided by operating activities 9,215 3,683
- --------------------------------------------------------------------------------
Net cash used in investing activities (2,304) (2,339)
- --------------------------------------------------------------------------------
Financing activities:
Principal payments of long term debt (3,149) (24)
Purchase of treasury shares (2,971) (991)
Proceeds from the sales of treasury shares 2 261
------ -------
Net cash used in financing activities: (6,118) (754)
- --------------------------------------------------------------------------------
Effects of exchange rate changes on cash 23 8
- --------------------------------------------------------------------------------
Net increase in cash and equivalents 816 598
- --------------------------------------------------------------------------------
Cash and equivalents at beginning of period 8,072 13,356
- --------------------------------------------------------------------------------
Cash and equivalents at end of period 8,888 13,954
- --------------------------------------------------------------------------------
The accompanying note is an integral part of these consolidated financial
statements.
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<PAGE>
<TABLE>
HOLOPHANE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
(Unaudited $ in thousands)
Additional Cumulative
Common Stock Paid-in Retained Treasury Stock Translation Stockholders'
Shares Amount Capital Earnings Shares Amount Adjustments Equity
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Balance at December 31, 1996 11,895,861 $ 119 $ 43,801 $30,527 473,369 ($6,534) ($ 769) $67,144
====================================================================================================================================
Net income for the quarter 3,110 3,110
Shares used in acquisition 13 (71,725) 1,367 1,380
Purchase of treasury shares 140,000 (2,971) (2,971)
Stock options exercised,
including related tax benefits (15) (1,201) 18 3
Translation adjustments (620) (620)
- ------------------------------------------------------------------------------------------------------------------------------------
Balance at March 31, 1997 11,895,861 $ 119 $ 43,799 $33,637 540,443 ($8,120) ($1,389) $68,046
====================================================================================================================================
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
-6-
<PAGE>
HOLOPHANE CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
Basis of Presentation - The condensed consolidated balance sheet as of March 31,
1997, and the condensed consolidated statements of income, cash flows and
stockholders' equity for the three months ended March 31, 1997 and March 31,
1996 have been prepared by the Company, without audit. In the opinion of
management, all adjustments, which include only normal recurring adjustments,
necessary to present fairly the financial position, results of operations,
changes in stockholders' equity and changes in cash flows for all periods
presented have been made.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted. These consolidated financial statements should
be read in conjunction with the financial statements and notes thereto included
in the Company's December 31, 1996 annual report on Form 10-K. The results of
operations for the three month period ended March 31, 1997 are not necessarily
indicative of the operating results for the full year.
Classification of Inventory
___________________________
(in thousands)
(Unaudited)
March 31, December 31,
1997 1996
----------- ------------
Raw Materials $ 8,658 $ 7,997
Work in Process 3,389 3,620
Finished Goods 2,250 2,374
-------- --------
Total 14,297 13,991
Less Valuation Allowance (726) (689)
-------- --------
Total $ 13,571 $ 13,302
======== ========
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<PAGE>
MANAGEMENT DISCUSSION AND ANALYSIS
Comparison of First Quarter 1997 to First Quarter 1996
Worldwide net sales for the first quarter of 1997 were $46.4 million, up 22%
from first quarter 1996. Approximately one-half of the sales increase was due to
the acquisition of MetalOptics, Inc.
Including the MetalOptics acquisition, first quarter sales in the United States
increased 28% compared to 1996. Internal sales growth in the United States was
up 14%. European sales in local currency were down approximately 9% compared to
first quarter 1996. Canadian sales were down 8% in local currency compared to
1996.
Operating income was $5.4 million, up $1.8 million from 1996 due primarily to
higher volume offset somewhat by higher selling and administrative expenses.
Total operating expenses in the quarter were $12.5 million, up from $10.3
million in 1996.
Net interest expense decreased slightly to $0.4 million in 1997 due to lower
outstanding balances. Long-term debt decreased $3.2 million at March 31, 1997.
Net income and earnings per share were $3.1 million and $0.26, respectively,
compared with $2.0 million and $0.17 in 1996.
Capital Resources, Liquidity and Other
Working capital was $25.1 million as of March 31, 1997, down approximately $2.1
million from year-end 1996 due primarily to volume related decreases in
receivables, partially offset by lower current liabilities.
Cash on hand, funds generated from operations and amounts available under the
Credit Agreement are expected to adequately fulfill Holophane's anticipated
requirements for the remainder of 1997 and in the foreseeable future.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: Except for historical information contained herein, the matters set forth
in this filing constitute forward-looking statements that are dependent on
certain risks and uncertainties including such factors, among others, as weather
conditions throughout the remainder of the fiscal year, the general state of the
national economy and other risks detailed in the Company's Securities Exchange
Act of 1934 filings.
-8-
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. Legal Proceedings
Not Applicable.
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
Not Applicable.
-9-
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, Holophane
has duly caused this report to be signed on its behalf of the undersigned
thereunto duly authorized.
HOLOPHANE CORPORATION
____________________________
(Registrant)
DATE: April 17, 1997 /s/ Bruce A. Philp
___________________________________
Bruce A. Philp
Vice President, Finance and
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 8888
<SECURITIES> 0
<RECEIVABLES> 29,743
<ALLOWANCES> 1,071
<INVENTORY> 13,571
<CURRENT-ASSETS> 54,838
<PP&E> 83,799
<DEPRECIATION> 44,833
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<CURRENT-LIABILITIES> 29,743
<BONDS> 15,714
0
0
<COMMON> 119
<OTHER-SE> 67,927
<TOTAL-LIABILITY-AND-EQUITY> 120,260
<SALES> 46,408
<TOTAL-REVENUES> 46,408
<CGS> 28,526
<TOTAL-COSTS> 12,338
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<INCOME-PRETAX> 4,995
<INCOME-TAX> 1,885
<INCOME-CONTINUING> 3,110
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,110
<EPS-PRIMARY> 0.26
<EPS-DILUTED> 0.26
</TABLE>
