<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 28, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission File Number 0-23070
AFC CABLE SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C>
Delaware 95-1517994
(State or other jurisdiction of incorporation or organization) (I.R.S.Employer Identification No.)
50 Kennedy Plaza, Suite 1250, Providence, Rhode Island 02903
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (401) 453-2000
</TABLE>
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 of the Registrant's Common Stock outstanding as of
the latest practicable date:
Class Outstanding as of May 11, 1998
----- ------------------------------
Common Stock, $.01 par value 11,575,468
Page 1 of 14 pages
<PAGE>
PART I - FINANCIAL INFORMATION
AFC CABLE SYSTEMS, INC.
ITEM 1. FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
<TABLE>
<CAPTION>
March 28, December 31,
1998 1997
--------- ------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents ................................. $ 6,823 $ 2,803
Investments, marketable securities (Note 5) ............... 38,548 40,434
Accounts receivable, net of allowance for doubtful accounts
and sales allowances of $2,885 and $3,870, respectively 37,835 32,127
Inventories:
Finished goods ......................................... 23,362 26,333
Work-in-process ........................................ 8,005 7,385
Raw materials .......................................... 6,214 6,219
---------- ----------
37,581 39,937
Current deferred taxes .................................... 1,744 1,491
Other current assets ...................................... 1,615 1,439
---------- ----------
Total current assets ...................................... 124,146 118,231
Property, plant and equipment, at cost ...................... 39,423 37,346
Less accumulated depreciation ............................... 13,434 12,409
----------- ----------
Net property, plant and equipment ........................... 25,989 24,937
Goodwill, net of accumulated amortization of $472 and
$373, respectively ........................................ 16,321 16,497
Other long term assets, net ................................. 1,660 1,464
---------- ----------
Total assets ................................................ $168,116 $161,129
=========== ==========
</TABLE>
Note: The balance sheet at December 31, 1997 has been derived from the audited
financial statements at that date but does not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements.
See accompanying notes.
2
<PAGE>
AFC CABLE SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS--Continued
(In thousands, except share data)
<TABLE>
<CAPTION>
March 28, December 31,
1998 1997
-------- -----------
<S> <C> <C>
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt .......................... $ 228 $ 227
Revolving credit note payable .............................. 5,000 6,230
Accounts payable ........................................... 13,212 12,536
Accrued expenses:
Payroll and employee benefits ........................... 3,075 3,609
Other ................................................... 9,300 7,488
-------- ---------
Total accrued expenses .................................. 12,375 11,097
-------- ---------
Total current liabilities .................................... 30,815 30,090
Long-term debt ............................................... 3,839 3,893
Deferred income taxes ........................................ 1,660 1,570
Other long-term liabilities .................................. 2,541 2,441
Shareholders' equity:
Preferred stock, $.01 par value, 1,000,000 shares
authorized, none issued
Common stock, $.01 par value, 15,000,000 shares
authorized, 11,462,410 and 11,397,854 shares issued
and outstanding, respectively ............................ 114 114
Paid-in capital ............................................. 80,120 79,110
Other (Note 8) .............................................. 919 1,021
Treasury stock, 14,137 shares and 6,411 shares,
respectively, at cost .................................... (364) (92)
Retained earnings ........................................... 48,472 42,982
-------- ---------
129,261 123,135
-------- ---------
Total liabilities and shareholders' equity .................... $168,116 $161,129
======== =========
</TABLE>
Note: The balance sheet at December 31, 1997 has been derived from the audited
financial statements at that date but does not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements.
See accompanying notes.
3
<PAGE>
AFC CABLE SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share data)
<TABLE>
<CAPTION>
Quarter ended
-------------------------
<S> <C> <C>
March 28, March 29,
1998 1997
---- --------
Net sales ..................................................... $65,286 $47,787
Cost of goods sold ............................................ 45,924 34,479
-------- --------
Gross profit .................................................. 19,362 13,308
Selling, general and administrative expenses .................. 10,802 7,803
-------- --------
Income from operations ........................................ 8,560 5,505
Other income (expense):
Interest expense ............................................ (133) (131)
Net investment and other income ............................. 579 250
-------- --------
446 119
-------- --------
Income before taxes ........................................... 9,006 5,624
Income taxes .................................................. 3,516 2,164
-------- --------
Net income (Note 8) ........................................... $ 5,490 $ 3,460
======== ========
Basic earnings per common share (Note 7) ...................... $ .48 $ .37
======== ========
Diluted earnings per common share (Note 7) .................... $ .46 $ 36
======== ========
</TABLE>
See accompanying notes
4
<PAGE>
AFC CABLE SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
<TABLE>
<CAPTION>
Quarter ended
--------------------------
<S> <C> <C>
March 28, March 29,
1998 1997
-------- --------
OPERATING ACTIVITIES
Net income ................................................... $ 5,490 $ 3,460
Adjustments to reconcile net income to cash provided
by operating activities:
Depreciation ............................................ 1,025 711
Amortization of intangibles ............................. 103 47
Net realized gain on available-for-sale securities ...... 52 (31)
Deferred income taxes ................................... (113) -
Provision for bad debts ................................. 57 33
Provision for sales allowances .......................... (980) (456)
Compensation expense for restricted stock
and compensatory options ............................. 19 23
Increase (decrease) in cash arising from changes
in assets and liabilities:
Accounts receivable ................................ (4,723) (2,853)
Inventories ........................................ 2,356 (3,729)
Other current assets ............................... (176) (54)
Other long-term assets ............................. (26) (82)
Accounts payable ................................... 676 150
Accrued payroll and employee benefits .............. (534) (731)
Other accrued liabilities .......................... 2,634 2,280
Long-term liabilities .............................. 100 661
-------- --------
Net cash provided by (used in) operating activities .......... 5,960 (571)
INVESTING ACTIVITIES
Acquisitions, including expenses, less cash acquired (Note 6) - (10,795)
Capital expenditures ......................................... (2,077) (1,458)
Purchase of available-for-sale securities .................... (9,056) (2,542)
Proceeds from sale of available-for-sale securities .......... 10,555 14,079
-------- --------
Net cash used in investing activities ........................ (578) (716)
FINANCING ACTIVITIES
Net revolving line of credit borrowings (repayments) ......... (1,230) 900
Payments on long-term debt, including current portion ........ (53) (218)
Proceeds from issuance of common stock ....................... 193 230
Purchase of treasury stock ................................... (272) -
-------- --------
Net cash provided by (used in) financing activities .......... (1,362) 912
-------- --------
Net increase (decrease) in cash and cash equivalents ......... 4,020 (375)
Cash and cash equivalents at beginning of period ............. 2,803 980
-------- --------
Cash and cash equivalents at end of period ................... $ 6,823 $ 605
======== ========
Supplemental schedule of cash flow information:
Cash paid during the period for interest ................... $ 47 $ 70
======== ========
Cash paid during the period for income taxes ............... $ 1,333 $ 210
======== ========
</TABLE>
See accompanying notes
5
<PAGE>
AFC CABLE SYSTEMS, INC.
NOTES TO FINANCIAL STATEMENTS
March 28, 1998
NOTE 1. BASIS OF PRESENTATION
The accompanying unaudited financial statements of AFC Cable Systems, Inc.
(the "Company" or "AFC") 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 months ended March 28, 1998 are not necessarily indicative of the results
that may be expected for the year ended December 31, 1998. Certain prior year
amounts have been reclassified to conform to current period presentation. For
further information, refer to the financial statements and footnotes thereto
included in the Company's annual report on Form 10-K for the year ended December
31, 1997.
NOTE 2. INCOME TAXES
For the quarters ended March 28, 1998 and March 29, 1997, the Company's
effective tax rates of approximately 39.0% and 38.5%, respectively, were greater
than the statutory rate due primarily to state income taxes.
NOTE 3. CONTINGENCIES
The Company is a defendant in certain claims that relate to matters that
occurred prior to present ownership. In accordance with the purchase and sale
agreement, the prior owner has indemnified the Company for such claims and,
accordingly, the matters are being defended by the prior owners and its
insurance companies. Management is of the opinion that these claims relate to
the prior owners and therefore will not have a material adverse effect on the
Company's financial position or results of operations.
Additionally, the Company is a party to one environmental matter not
covered by the indemnification. In this matter, a number of responsible parties
entered into a consent decree with the EPA in 1991 and subsequently, such
parties as plaintiffs have sought contribution from the Company, which was not
named as a responsible party by the EPA. The Company has admitted that a
predecessor of the business currently operated by the Company had disposed of a
de minimis amount of waste at the site. On December 17, 1996, the United States
District Court for the District of Massachusetts entered a judgment in favor of
the Company with respect to this claim. As of March 28, 1998, there is an appeal
pending with the U.S. Court of Appeals for the First Circuit.
NOTE 4. FINANCING AND LEASE
The Company has an unsecured revolving line of credit agreement with a
bank which provides for direct borrowings of up to $25.0 million, of which up to
$10.0 million is available, without the lender's prior consent, for business
acquisitions. The line of credit agreement also provides for letter of credit
borrowings of up to $3.0 million. A monthly fee based on the unused portion of
credit is payable under the agreement.
Borrowings under the line of credit are available at interest rates equal
to either the lender's base rate or the Eurodollar rate plus 0.5% to 1.25% for a
fixed period of one, two, three, six or twelve months. The Company has the
option of electing the applicable rate upon notification to the lender and as a
result, portions of the outstanding balance accrue interest at different rates.
The weighted average rate of outstanding borrowings under the revolving line of
credit was 6.281% at March 28, 1998. Total letters of credit issued at March 28,
1998 were $821,000. The line of credit contains certain restrictive covenants,
including the requirement that the Company maintain minimum levels of tangible
capital funds and meet other specified ratio requirements.
During 1996, the Company was loaned the proceeds from the issuance of $3.57
million in Industrial Revenue Bonds ("IRBs") by the Massachusetts Industrial
Finance Agency for the purpose of acquiring and refurbishing a
6
<PAGE>
99,000 square-foot manufacturing facility in New Bedford, Massachusetts, which
secures the IRBs. The IRBs mature on July 24, 2016 and carry an interest rate
which is adjustable on a weekly basis. This interest rate was approximately
3.75% for the three months ended March 28, 1998. In addition, an annual fee of
1.0% of the amount of an unsecured stand-by letter of credit is payable to the
bank holding the letter of credit and also acting as trustee under the terms of
the IRB issuance. The Company has the right to convert from the variable
interest rate to a fixed rate established at the time of conversion. The bonds
are payable in nineteen annual installments of $180,000 with a final payment of
$150,000 due at maturity, all funded through monthly payments of $15,000 to the
trustee over the twelve months preceding the installment due dates. At March 28,
1998, $3.1 million of the total was classified as long-term debt. The carrying
value of the bonds approximates market at March 28, 1998.
In addition to the IRBs, long-term debt at March 28, 1998 includes $766,000
which represents a mortgage on the facility occupied by B&B. The mortgage
carries a fixed rate of 8% and matures on February 20, 2012. The carrying amount
approximates fair value at March 28, 1998.
NOTE 5. INVESTMENTS
The following is a summary of securities held by the Company. All
securities are classified as available-for-sale.
<TABLE>
<CAPTION>
Gross Estimated
Gross Unrealized Fair
Cost Unrealized Gains Losses Value
-------------- ----------------- ---------------- ---------------
<S> <C> <C> <C> <C>
(In Thousands)
MARCH 28, 1998
U.S. corporate debt securities $ 8,151 $ 331 $ (4) $ 8,478
U.S. treasury securities
and obligations of U.S.
Government agencies 25,629 25 (17) 25,637
Equity securities 3,657 891 (115) 4,433
----------- ------------- ------------ -----------
Total included in investments $37,437 $ 1,247 $ (136) $38,548
=========== ============= ============ ===========
DECEMBER 31, 1997
U.S. corporate debt securities $ 9,464 $ 329 $ (3) $ 9,790
U.S. treasury securities
and obligations of U.S.
Government agencies 24,713 55 (2) 24,766
Equity securities 4,894 1,096 (112) 5,878
----------- ------------- ------------ -----------
Total included in investments $39,071 $ 1,480 $ (117) $40,434
=========== ============= ============ ===========
</TABLE>
7
<PAGE>
The cost and fair market value of debt securities at March 28, 1998 and
December 31, 1997, by contractual maturities, are shown below:
Available-for-Sale
Fair Market
Cost Value
-------------------------------
MARCH 28, 1998 ($ in thousands)
Debt securities:
Maturing in one year or less $16,523 $16,796
Maturing between one year and five years 16,101 16,100
Maturing after five years 1,156 1,219
-------------------------------
33,780 34,115
Equity securities 3,657 4,433
-------------------------------
Total investments $37,437 $38,548
===============================
DECEMBER 31, 1997
Debt securities:
Maturing in one year or less $15,031 $15,296
Maturing between one year and five years 17,931 17,983
Maturing after five years 1,215 1,277
-------------------------------
34,177 34,556
Equity securities 4,894 5,878
-------------------------------
Total investments $39,071 $40,434
===============================
Expected maturities will differ from contractual maturities because the
issuers of the securities may have the right to prepay obligations without
prepayment penalties. Realized gains included in investment income amounted to
$52,000 in the quarter ended March 28, 1998.
NOTE 6. ACQUISITIONS
During 1997, the Company completed four acquisitions (the "Acquisitions").
In January, 1997, the Company acquired B&B Electronics Manufacturing Company,
Inc. ("B&B"), a manufacturer and direct marketer of electronic interfaces and
connectors that facilitate data communications, and Area Lighting Research, Inc.
("ALR"), a manufacturer and distributor of lighting controls. In April, 1997,
the Company acquired Madison Equipment Company, Inc. ("Madison"), a supplier of
fittings for the electrical industry. In November, 1997, the Company acquired
the Federal Hose Division of FLEXFAB Horizons International, Inc. ("Federal
Hose"), a manufacturer and distributor of flexible metal, plastic and fabric
hoses, ducting and connectors. As of March 28, 1998, the Company has paid a
total purchase price of approximately $22.0 million in cash and approximately
152,843 shares of the common stock of the Company (the "Common Stock") for the
Acquisitions, including additional consideration paid in a combination of cash
and Common Stock to the sellers of B&B and ALR for certain financial targets met
by those companies for the year ended December 31, 1997. The Company may be
required to pay additional consideration, in either cash or Common Stock, if B&B
or Federal Hose meet certain financial targets in future years.
The Acquisitions are accounted for as purchases, therefore, the income
statement of the Company for the three months ended March 29, 1997 reflects
operations of B&B and ALR from the acquisition date. The goodwill resulting from
the Acquisitions is being amortized over forty years, with the exception of the
goodwill from Madison, which is being amortized over 20 years.
8
<PAGE>
Pro forma income statement data for the quarter ended March 29, 1997
assuming the Acquisitions occurred at the beginning of 1997 is as follows:
Quarter ended
March 29,
(In thousands, except per share data) 1997
-------------
Net sales $54,425
Income from operations 6,002
Net income 3,763
Basic earnings per share .40
Diluted earnings per share .39
The above pro forma information does not purport to represent what the
Company's results of operations would actually have been had the acquisitions in
fact occurred at the beginning of the periods indicated or to project the
Company's results for any future periods.
NOTE 7. EARNINGS PER SHARE
The Company adopted Financial Accounting Standards Board Statement No. 128,
"Earnings Per Share" ("FAS 128"), in 1997. FAS 128 requires the presentation of
"basic earnings per share" and "diluted earnings per share." Basic earnings per
share represents net income divided by the weighted average number of shares of
Common Stock outstanding during the year. Diluted earnings per share represents
net income divided by weighted average shares outstanding adjusted for the
dilutive effect of the assumed exercise of outstanding options and warrants.
Share and earnings per share amounts for all periods have been presented, and
where appropriate, restated to conform to the requirements of FAS 128. The
following table sets forth the computation of basic and diluted earnings per
share for the three-month periods ended March 28, 1998 and March 29, 1997:
Quarter ended
March 28, March 29,
1998 1997
------------- ---------------
Net income (in thousands) $5,490 $3,460
Basic average shares 11,363,563 9,260,827
Effect of dilutive securities:
Stock options and stock awards 386,071 133,079
Stock warrants 91,830 128,310
------------- ---------------
477,901 261,389
Dilutive average shares 11,841,464 9,522,216
============= ===============
Basic earnings per share $0.48 $0.37
============= ===============
Diluted earnings per share $0.46 $0.36
============= ===============
NOTE 8. COMPREHENSIVE INCOME
As of January 1, 1998, the Company adopted Financial Accounting Standards
Board Statement No. 130, "Reporting Comprehensive Income" ("FAS 130"). FAS 130
establishes new rules for the reporting and display of comprehensive income and
its components. The adoption of FAS 130, however, had no impact on the Company's
net income or shareholders' equity. FAS 130 requires unrealized gains or losses
on the Company's available-for-sale securities, which prior to adoption was
reported separately in shareholders' equity, to be included in other
comprehensive income.
9
<PAGE>
The components of comprehensive income, net of related tax, for the three
month periods ended March 28, 1998 and March 29, 1997 are as follows:
Quarter ended
March 28, March 29,
(In thousands) 1998 1997
------------ ------------
Net income $5,490 $3,460
Unrealized gains (losses) on securities (101) (70)
============ ============
Comprehensive income $5,389 $3,390
============ ============
NOTE 9. STOCK SPLIT
On September 16, 1997, the Company's Board of Directors authorized a
five-for-four split of the Common Stock effected in the form of a 25 percent
stock dividend distributed on October 20, 1997, to shareholders of record on
October 6, 1997. Shareholders' equity was adjusted by reclassifying from
retained earnings to common stock the par value of the additional shares arising
from the split. All references in the prior year to number of shares, per share
amounts and prices of the Common Stock have been restated to present the effect
of the stock split.
NOTE 10. STOCK OFFERING
On April 23, 1997, the Company completed the issuance of 1,562,500 shares of
Common Stock at a price of $15.40 per share. As part of this offering, the
Company granted the underwriters an option to purchase a maximum of 375,000
additional shares to cover over-allotments, which was exercised in full on April
29, 1997.
NOTE 11. SUBSEQUENT EVENT
On April 16, 1998, the Company filed a registration statement with the
Securities and Exchange Commission for the proposed offering of 1,500,000 shares
of Common Stock. Approximately 875,000 shares will be offered by the Company and
625,000 by selling stockholders. An option to purchase an additional 225,000
shares was granted by the Company to the underwriters to cover over-allotments.
10
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
Comparative Results of Operations for the Three Months
Ended March 28, 1998 and March 29, 1997
This report contains certain forward-looking statements within the meaning
of section 21E of the Securities Exchange Act of 1934, as amended. These
statements include, among others, statements relating to future events or the
future financial performance of the Company. Such statements are only
expectations and actual events or results may differ materially. Factors which
could cause actual results to differ materially from those indicated in such
forward-looking statements are set forth in "Factors That May Affect Future
Performance" in the Company's Annual Report on Form 10-K for the year 1997.
RESULTS OF OPERATIONS
NET SALES. Net sales for the quarter ended March 28, 1998 increased $17.5
million, or 36.6%, to $65.3 million from $47.8 million for the quarter ended
March 29, 1997. Net sales for the Wire and Cable Division increased by $14.3
million, or 35.5%, to $54.6 million for the quarter ended March 28, 1998 from
$40.3 million for the quarter ended March 29, 1997. The increase was
attributable primarily to higher sales of the Company's traditional armored
cable and flexible conduit products, specialty application cables, fittings and
connectors, and specialty coated metals products. Also contributing to this
increase were the sales of Madison and Federal Hose, which were acquired in
April and November of 1997, respectively. Net sales for the America Cable
Systems Division increased by $3.1 million, or 42.5%, to $10.4 million for the
quarter ended March 28, 1998 from $7.3 million for the quarter ended March 29,
1997. This increase is attributable to higher sales of modular wiring systems as
well as a full period of, and increased sales by, ALR and B&B, which sales are
now included in those of the America Cable Systems Division. Sales for this
division for the quarter ended March 29, 1997 have been restated to include
sales by ALR and B&B.
GROSS PROFIT. Gross profit for the quarter ended March 28, 1998 increased
$6.1 million, or 45.9%, to $19.4 million from $13.3 million for the quarter
ended March 29, 1997. Gross margin increased to 29.7% for the quarter ended
March 28, 1998 from 27.8% for the quarter ended March 29, 1997. This increase is
attributable to (i) improved operating efficiencies, (ii) more efficient
material utilization resulting from improved manufacturing processes, (iii)
decreased cost of raw materials through improved purchasing practices, (iv)
increased sales of the Company's higher margin specialty application cables, and
(v) higher margins on certain of the products sold by the companies acquired in
1997.
INCOME FROM OPERATIONS. Income from operations for the quarter ended March
28, 1998 increased $3.1 million, or 56.4%, to $8.6 million from $5.5 million for
the quarter ended March 29, 1997. Income from operations as a percentage of net
sales increased to 13.1% for the quarter ended March 28, 1998 from 11.5% for the
quarter ended March 29, 1997. This increase resulted from improved gross margin,
but was partially offset by an increase in compensation expense and professional
fees and increases in freight costs and sales agent commissions, which generally
rise in proportion with net sales.
NET INCOME. Net income for the quarter ended March 28, 1998 increased $2.0
million, or 57.1%, to $5.5 million from $3.5 million for the quarter ended March
29, 1997. Net income as a percentage of net sales increased to 8.4% for the
quarter ended March 28, 1998 from 7.2% for the quarter ended March 29, 1997.
This increase was primarily due to increased income from operations and
investment income, partially offset by a .5% higher effective tax rate which was
due to a higher marginal income tax rate for the first quarter 1998.
INTEREST EXPENSE. Interest expense for the quarter ended March 28, 1998
increased slightly to $133,000 from $131,000 for the quarter ended March 29,
1997. Average borrowings during the first quarter of 1998 were higher than
during the first quarter of 1997, but at more favorable borrowing rates.
LIQUIDITY AND CAPITAL RESOURCES
Cash provided by operations totaled $6.0 million for the quarter ended
March 28, 1998 and was mainly attributable to increased profitability, decreased
levels of inventories and increased accrued expenses partially offset
11
<PAGE>
by an increase in accounts receivable resulting from higher sales. Working
capital on March 28, 1998 was $93.3 million and the ratio of current assets to
current liabilities was 4.03 to 1.00.
The Company believes that funds generated from operations, proceeds from the
April 23, 1997 sale of Common Stock described in Note 10 to the financial
statements, proceeds from the anticipated sale of Common Stock described in Note
11 to the financial statements and available borrowings under its revolving line
of credit will be sufficient to meet its on-going working capital and capital
expenditure requirements for the foreseeable future.
12
<PAGE>
PART II - OTHER INFORMATION
AFC CABLE SYSTEMS, INC.
ITEM 1. LEGAL PROCEEDINGS.
None
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS.
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
None
(b) No reports on Form 8-K were filed during the quarter ended March 28, 1998.
13
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
Date: May 11, 1998
AFC CABLE SYSTEMS, INC.
By:/s/Ralph R. Papitto
----------------------
Ralph R. Papitto
Chairman of the Board and
Chief Executive Officer
By:/s/Raymond H. Keller
-----------------------
Raymond H. Keller
Vice President and
Chief Financial Officer
14
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-28-1998
<CASH> 6,823
<SECURITIES> 38,548
<RECEIVABLES> 40,720
<ALLOWANCES> 2,885
<INVENTORY> 37,581
<CURRENT-ASSETS> 124,146
<PP&E> 39,423
<DEPRECIATION> 13,434
<TOTAL-ASSETS> 168,116
<CURRENT-LIABILITIES> 30,815
<BONDS> 0
0
0
<COMMON> 114
<OTHER-SE> 129,147
<TOTAL-LIABILITY-AND-EQUITY> 168,116
<SALES> 65,286
<TOTAL-REVENUES> 65,286
<CGS> 45,924
<TOTAL-COSTS> 45,924
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 57
<INTEREST-EXPENSE> 133
<INCOME-PRETAX> 9,006
<INCOME-TAX> 3,516
<INCOME-CONTINUING> 5,490
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,490
<EPS-PRIMARY> .48
<EPS-DILUTED> .46
</TABLE>
