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, 1997
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)
847 - 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 18,513,012 common shares outstanding as of March 31, 1997.
<PAGE 2>
JUNO LIGHTING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
=====================================
(In Thousands)
February 28, November 30,
ASSETS 1997 1996
------------ ------------
(Unaudited) (Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $ 2 967 $ 3 473
Marketable securities 64 467 67 622
Accounts receivable, less
allowance for possible losses
of $638,000 and $554,000 20 749 21 725
Inventories at lower of cost or market 23 819 23 275
Prepaid expenses and miscellaneous 4 208 4 346
------- -------
TOTAL CURRENT ASSETS 116 210 120 441
------- -------
PROPERTY, PLANT AND EQUIPMENT,
less accumulated depreciation of
$15,418,000 and $14,611,000 43 911 42 805
OTHER ASSETS: ------- -------
Marketable securities 10 770 10 720
Goodwill and other intangibles, net
of accumulated amortization of
$1,917,000 and $1,877,000 4 107 4 148
Miscellaneous 68 67
------- -------
TOTAL OTHER ASSETS 14 945 14 935
------- -------
$ 175 066 $ 178 181
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 3 479 $ 4 132
Accrued liabilities 7 570 11 844
------- -------
TOTAL CURRENT LIABILITIES 11 049 15 976
------- -------
LONG-TERM DEBT & DEFERRED INCOME TAXES 6 310 6 544
------- -------
STOCKHOLDERS' EQUITY:
Common stock, $.01 par, shares
authorized 50,000,000;
outstanding 18,563,412 & 18,563,412 186 186
Paid-in-capital 4 915 4 915
Cumulative marketable securities
valuation adjustment 357 670
Cumulative loss on foreign
currency translation ( 247) ( 197)
Retained earnings 153 292 150 883
------- -------
158 503 156 457
Less Treasury stock, at cost,
50,400 shares ( 796) ( 796)
------- -------
TOTAL STOCKHOLDERS' EQUITY 157 707 155 661
------- -------
$ 175 066 $ 178 181
======= =======
(See Notes To Consolidated Financial Statements)
<PAGE 3>
JUNO LIGHTING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
===========================================
(In Thousands Except Per
Share Amounts)
Three Months Ended
--------------------------
February 28, February 29,
1997 1996
----------- ------------
(Unaudited) (Unaudited)
NET SALES $ 30 804 $ 28 186
COST OF SALES 16 453 16 087
------- -------
Gross profit 14 351 12 099
SELLING, GENERAL AND ADMINISTRATIVE 9 512 8 722
------- -------
Operating income 4 839 3 377
OTHER INCOME 960 976
------- -------
Income before taxes on income 5 799 4 353
TAXES ON INCOME 1 909 1 397
------- -------
NET INCOME $ 3 890 $ 2 956
======= =======
NET INCOME PER COMMON SHARE $0.21 $0.16
======= =======
(See Notes To Consolidated Financial Statements)
<PAGE 4>
JUNO LIGHTING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF RETAINED EARNINGS
=====================================================
(In Thousands)
Three Months Ended
February 28, 1997
------------------
(Unaudited)
RETAINED EARNINGS, beginning of period $ 150 883
CASH DIVIDEND ($0.08 per share) ( 1 481)
NET INCOME, three months ended
February 28, 1997 3 890
-------
RETAINED EARNINGS, end of period $ 153 292
=======
(See Notes To Consolidated Financial Statements)
<PAGE 5>
JUNO LIGHTING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS
==================================
(In Thousands)
Three Months Ended
---------------------------
February 28, February 29,
1997 1996
----------- -----------
(Unaudited) (Unaudited)
CASH FLOWS PROVIDED BY (USED IN) OPERATING
ACTIVITIES:
Net income $ 3 890 $ 2 956
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation & amortization 849 745
Changes in assets and liabilities:
Decrease in accounts
receivable 927 751
(Increase) in inventory ( 544) ( 479)
Decrease in prepaid expense 303 1 416
Decrease in other
assets 0 30
(Decrease) Increase in accounts
payable and accrued expenses ( 4 927) 1 453
(Increase) in deferred taxes ( 172) ( 74)
------- -------
NET CASH PROVIDED BY OPERATING ACTIVITIES: 326 6 798
------- -------
CASH FLOWS PROVIDED BY (USED IN) INVESTING
ACTIVITIES:
Capital expenditures ( 1 914) ( 842)
Purchases of marketable securities ( 3 490) ( 12 700)
Sales of marketable securities 6 116 9 920
------- -------
NET CASH PROVIDED BY (USED IN) INVESTING
ACTIVITIES 712 ( 3 622)
------- -------
(CONTINUED ON NEXT PAGE)
<PAGE 6>
JUNO LIGHTING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS (CONTINUED)
=================================
(In Thousands)
Three Months Ended
---------------------------
February 28, February 29,
1997 1996
___________ ___________
(Unaudited) (Unaudited)
CASH FLOWS PROVIDED BY (USED IN) FINANCING
ACTIVITIES:
Purchase of Treasury stock 0 ( 637)
Proceeds from exercise of stock
options 0 140
Dividend paid ( 1 481) ( 1 475)
Principal payments on long-term debt ( 63) ( 114)
___________ ___________
NET CASH (USED IN)
FINANCING ACTIVITIES ( 1 544) ( 2 086)
___________ ___________
NET (DECREASE) INCREASE IN CASH ( 506) 1 090
CASH AT BEGINNING OF PERIOD 3 473 6 519
___________ ___________
CASH AT END OF PERIOD $ 2 967 $ 7 609
=========== ===========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest $ 67 $ 86
Income taxes 239 255
(SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS)
<PAGE 7>
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, 1996 was derived from
the Company's audited consolidated financial statements.
INVENTORIES
Inventories are summarized as follows:
(In Thousands)
February 28, November 30,
1997 1996
----------- -----------
Finished goods $ 11 664 $ 11 241
Raw materials 12 155 12 034
------- -------
$ 23 819 $ 23 275
======= =======
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 29,
1997 1996
3 months ended 18,524,796 18,487,650
<PAGE 8>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
========================================================
RESULTS OF OPERATIONS:
_____________________
Three Months Ended February 28, 1997 Compared With Three Months
_______________________________________________________________
Ended February 29, 1996
_______________________
During the first quarter ended February 28, 1997, net sales
increased 9.3% to $30,804,000 compared to $28,186,000 for the like period in
1996. This increase in sales is due primarily to a favorable comparison
against disappointing sales results in the first quarter of 1996 and
increased demand for new products introduced in 1996. Sales through Juno's
Canadian subsidiary increased 18.5% to $1,701,000 compared to $1,435,000 for
the like period in 1996. This increase, in Management' opinion, is primarily
due to market share gains.
Cost of sales as a percentage of net sales decreased to 53.4% for
the quarter, compared to 57.1% for the like period in 1996. This decrease is
due primarily to one-time bonus expenditures in the first quarter of 1996
resulting from the labor contract settlement in the Fall of 1995, with the
remainder due to reductions in raw materials costs and benefits associated from
retooling of high volume parts.
Selling, general and administrative expenses increased by $790,000
(9.1%) primarily due to advertising and promotional costs associated with new
product introductions, increases in freight costs, increases in salaries and
benefits, and increases in legal fees. These increases in the first quarter
of 1997 were offset by one-time expenditures in the like period of 1996
relating to an executive relocation agreement and to costs relating to a
national sales meeting to introduce new products, and as a result, the
percentage of sales remained consistent with 1996 levels at 30.9%.
As a result of the above factors, operating income increased to
15.7% of sales as compared to 12.0% for the like period in 1996.
LIQUIDITY AND CAPITAL RESOURCES:
_______________________________
During the three month period ended February 28, 1997, the Company
generated positive net cash flow from operating activities of $326,000. This
was comprised principally of net income, depreciation and amortization,
decreases in accounts receivable and prepaid expenses (collectively aggregating
$5,969,000), net of increases in inventory of $544,000 and accounts payable of
$4,927,000. The Company used the net cash provided from operating activities
to finance capital expenditures of $1,914,000 and pay dividends of $1,481,000
($.08 per common share).
On March 3, 1997, the Company announced the declaration of a cash
dividend of 8 cents per share payable April 15, 1997, to stockholders of record
on March 14, 1997. 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 9>
PART II - OTHER INFORMATION
===========================
Item 1. Legal Proceedings - Reference is made to Item 3 of Part I of the
Company's Annual Report on Form 10-K for the fiscal year ended
November 30, 1996 for a description of an action filed by
Juno Online Services, L.P.
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 10>
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, Vice President Finance
---------------------------------------
(Principal Financial Officer)
Dated: April 14, 1997