-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JksxqyjdERhROtJOThP9kU0OX5ltt9uJVeFLM2QLnXSVSjqcKs4+n5e1KzSbWhJ8 eMif7xAv7hUSUcvmQjMhhQ== 0001047469-99-020861.txt : 19990518 0001047469-99-020861.hdr.sgml : 19990518 ACCESSION NUMBER: 0001047469-99-020861 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19990331 FILED AS OF DATE: 19990517 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARMON INDUSTRIES INC CENTRAL INDEX KEY: 0000045635 STANDARD INDUSTRIAL CLASSIFICATION: COMMUNICATIONS EQUIPMENT, NEC [3669] IRS NUMBER: 440657800 STATE OF INCORPORATION: MO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-07916 FILM NUMBER: 99625430 BUSINESS ADDRESS: STREET 1: 1600 NE CORONADO DR CITY: BLUE SPRINGS STATE: MO ZIP: 64015-6236 BUSINESS PHONE: 8162293345 MAIL ADDRESS: STREET 1: 1600 NE CORONADO DR CITY: BLUE SPRINGS STATE: MO ZIP: 64015-6236 FORMER COMPANY: FORMER CONFORMED NAME: HARMON ELECTRONICS INC DATE OF NAME CHANGE: 19780823 10-Q 1 10-Q UNITED STATES 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 quarterly period ended: March 31, 1999 Commission File Number: 0-7916 -------------- ------ HARMON INDUSTRIES, INC. ----------------------- (Exact name of registrant as specified in its charter) Missouri 44-0657800 -------- ---------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 1600 NE Coronado Drive, Blue Springs, Missouri 64014 ---------------------------------------------- ----- (Address of principal executive offices) (Zip Code) 816-229-3345 ------------ (Registrant's telephone number, including area code) 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 ----- ----- Number of shares of Registrant's common stock outstanding as of March 31, 1999: 10,895,219 - ---------- PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS The Consolidated Statements of Earnings, Consolidated Balance Sheets, Consolidated Statements of Cash Flows and Consolidated Statements of Stockholders' Equity are unaudited, but reflect, in the opinion of management, all adjustments necessary, all of which are considered normal and recurring, to present fairly the financial position of the Company at March 31, 1999 and December 31, 1998 as well as the results of its operations for the interim periods ended March 31, 1999 and March 31, 1998. The Consolidated Balance Sheet as of December 31, 1998 is derived from the audited Consolidated Balance Sheet as of that date. 2 HARMON INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF EARNINGS FOR PERIODS ENDED MARCH 31, 1999 AND 1998 AMOUNTS IN THOUSANDS (EXCEPT PER SHARE DATA) (UNAUDITED)
Three months ended March 31, -------------------------------------------- 1999 1998 ------------------- ------------------- Net sales $58,953 $60,558 Cost of sales 45,034 46,014 Research and development expenditures 1,937 2,107 ------------------- ------------------- Gross profit 11,982 12,437 Selling, general and administrative expenses 9,170 7,540 Amortization of cost in excess of fair value of net assets acquired 409 217 Miscellaneous (income) expense-net (118) 10 ------------------- ------------------- Operating income 2,521 4,670 Interest expense (563) (304) Investment income 63 36 ------------------- ------------------- Earnings before income taxes 2,021 4,402 Income tax expense 818 1,590 ------------------- ------------------- Net earnings $1,203 $2,812 ------------------- ------------------- ------------------- ------------------- Net earnings per common share: Basic $0.11 $0.27 Diluted $0.11 $0.27 Shares used for computation: Basic 10,732 10,481 Diluted 10,864 10,608
3 HARMON INDUSTRIES, INC. CONSOLIDATED BALANCE SHEETS IN THOUSANDS OF DOLLARS
MARCH 31, 1999 DECEMBER 31, (UNAUDITED) 1998 --------------------- ------------------- ASSETS Current assets: Cash and cash equivalents $4,237 $1,669 Trade receivables, less allowance for doubtful accounts of $326 in 1999 and $351 in 1998 58,322 52,229 Costs and estimated earnings in excess of billings on uncompleted contracts 10,973 9,649 Inventories: Work in process 5,410 6,372 Raw materials and supplies 40,712 36,640 --------------------- ------------------- 46,122 43,012 Income tax receivable 261 597 Deferred tax asset 587 587 Prepaid expenses and other current assets 2,590 1,301 --------------------- ------------------- Total current assets 123,092 109,044 --------------------- ------------------- Property, plant and equipment, at cost: Land 465 465 Buildings 11,729 11,671 Machinery and equipment 20,092 18,830 Office furniture and equipment 28,167 25,246 Transportation equipment 2,308 1,709 Leasehold improvements 4,155 3,938 --------------------- ------------------- 66,916 61,859 Less accumulated depreciation and amortization 37,685 35,284 --------------------- ------------------- Net property, plant and equipment 29,231 26,575 Deferred tax asset 5,246 654 Cost in excess of fair value of net assets acquired, net of accumulated amortization of $4,621 in 1999 and $4,212 in 1998 31,020 17,327 Deferred compensation asset 7,825 6,839 Other assets 2,828 2,414 --------------------- ------------------- $199,242 $162,853 --------------------- ------------------- --------------------- ------------------- MARCH 31, 1999 DECEMBER 31, (UNAUDITED) 1998 -------------------- ------------------- LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current debt installments $405 $280 Accounts payable 13,136 16,415 Accrued payroll, bonus and employee benefit plan contributions 7,236 13,342 Billings in excess of costs and estimated earnings on uncompleted contracts 19,118 17,493 Other accrued liabilities 7,486 5,650 -------------------- ------------------- Total current liabilities 47,381 53,180 -------------------- ------------------- Deferred compensation liability 5,876 5,175 Other long-term liabilities 1,790 - Long-term debt 54,891 19,540 -------------------- ------------------- Total liabilities 109,938 77,895 Stockholders' equity Common stock of $.25 par value; authorized 50,000,000 shares, issued 10,895,219 in 1999 and 10,662,400 in 1998 2,724 2,666 Additional paid-in capital 30,733 27,457 Foreign currency translation (96) 127 Unearned compensation (255) (287) Retained earnings 56,198 54,995 -------------------- ------------------- Total stockholders' equity 89,304 84,958 -------------------- ------------------- $199,242 $162,853 -------------------- ------------------- -------------------- -------------------
4 HARMON INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTH PERIODS ENDED MARCH 31, 1999 AND 1998 IN THOUSANDS OF DOLLARS (UNAUDITED)
MARCH 31, MARCH 31, 1999 1998 --------- --------- CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings $ 1,203 $ 2,812 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 2,002 1,765 Earned stock compensation 64 -- Changes in assets and liabilities: Trade receivables (1,095) (548) Inventories (2,884) (2,173) Estimated costs, earnings and billings on contracts (1,840) (1,398) Prepaid expenses (1,140) (1,085) Accounts payable (4,257) (2,971) Accrued payroll and benefits (6,803) (4,347) Current income taxes 336 1,166 Other accrued liabilities (577) (1,397) Deferred compensation liability 701 411 --------- --------- Total adjustments (15,493) (10,577) --------- --------- Net cash provided by (used in) operating activities (14,290) (7,765) --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (2,568) (2,437) Proceeds from sale of property, plant and equipment 5 -- Deferred compensation contributions (986) (725) Acquisition of businesses (14,620) -- Other investing activities (414) (290) --------- --------- Net cash used in investing activities (18,583) (3,452) --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of common stock 284 37 Borrowings under line of credit agreements 46,586 21,683 Repayments under line of credit agreements (11,150) (15,595) Principal payments of long-term debt (56) (186) --------- --------- Net cash (used in) provided by financing activities 35,664 5,939 --------- --------- --------- --------- Foreign currency translation adjustment (223) 61 --------- --------- Net increase (decrease) in cash and cash equivalents 2,568 (5,217) --------- --------- Cash and cash equivalents at beginning of period 1,669 6,748 --------- --------- Cash and cash equivalents at end of period $ 4,237 $ 1,531 --------- --------- --------- --------- SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $ 734 $ 522 Income taxes $ 271 $ 743 Acquisition of business financed by issuance of common stock $ 3,018 --
5 HARMON INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY IN THOUSANDS OF DOLLARS (UNAUDITED)
Additional Foreign Total Common Paid-in Currency Unearned Retained Stockholders' Comprehensive Stock Capital Translation Compensation Earnings Equity Income --------------------------------------------------------------------------- -------------- Balance at December 31, 1997 2,609 24,514 104 (224) 42,759 69,762 --------------------------------------------------------------------------- Net earnings 2,812 2,812 $2,812 Common stock issued: Acquisition of businesses 20 1,138 1,158 Stock options and other 1 36 37 Foreign currency translation 149 149 149 -------------- Comprehensive income $2,961 --------------------------------------------------------------------------- -------------- -------------- Balance at March 31, 1998 $2,630 $25,688 $253 ($224) $45,571 $73,918 --------------------------------------------------------------------------- Net earnings 4,602 4,602 $4,602 Cash dividends paid (580) (580) Common stock issued: Deferred compensation 7 7 Stock options and other 5 291 296 Foreign currency translation (115) (115) (115) -------------- Comprehensive income $4,487 --------------------------------------------------------------------------- -------------- -------------- Balance at June 30, 1998 $2,635 $25,986 $138 ($224) $49,593 $78,128 --------------------------------------------------------------------------- -------------- -------------- Net earnings 2,468 2,468 $2,468 Common stock issued: Deferred compensation 2 176 (70) 108 Stock options and other 1 24 25 Foreign currency translation 126 126 126 -------------- Comprehensive income $2,594 --------------------------------------------------------------------------- -------------- -------------- Balance at September 30, 1998 $2,638 $26,186 $264 ($294) $52,061 $80,855 --------------------------------------------------------------------------- Net earnings 3,520 3,520 $3,520 Cash dividends paid (586) (586) Common stock issued: Acquisition of businesses 24 976 1,000 Deferred compensation 7 7 Stock options and other 4 295 299 Foreign currency translation (137) (137) (137) -------------- Comprehensive income $3,383 --------------------------------------------------------------------------- -------------- -------------- Balance at December 31, 1998 $2,666 $27,457 $127 ($287) $54,995 $84,958 --------------------------------------------------------------------------- Net earnings 1,203 1,203 $1,203 Common stock issued: Acquisition of businesses 50 2,968 3,018 Deferred compensation 32 32 Stock options and other 8 308 316 Foreign currency translation (223) (223) (223) -------------- Comprehensive income $ 980 --------------------------------------------------------------------------- -------------- -------------- Balance at March 31, 1999 $2,724 $30,733 ($96) ($255) $56,198 $89,304 --------------------------------------------------------------------------- ---------------------------------------------------------------------------
6 PART I. FINANCIAL INFORMATION ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS: THREE MONTHS ENDED MARCH 31, 1999 Harmon Industries, Inc. (`Harmon' or `the Company') recorded net sales for the quarter of $59.0 million, a decrease of $1.6 million, or 2.7%, from the first quarter of 1998. The decline in net sales is the result of decreased sales in the international segment, principally as a result of a decrease in shipments to a major customer of the Company's subsidiary in the United Kingdom. Gross profit for the quarter decreased by 3.7% to $12.0 million in 1999 from $12.4 million in 1998. This decrease in gross profit was the result of the decrease in net sales in the international segment and the impact of lower gross profit margins domestically. The Company's consolidated gross profit margin decreased to 20.3% from 20.5% in the prior year quarter. The decline in gross profit margin is primarily the result of an increase in the sales mix toward services, systems and pass-through sales. Research and development expenditures (R&D) for the quarter decreased to $1.9 million from $2.1 million in the same quarter one year ago as the Company began work on recent orders for products that were previously under development. As a result, R&D as a percent of net sales decreased to 3.3% in the first quarter of 1999 from 3.5% in the first quarter of 1998. Selling, general and administrative expenses (SG&A) were $9.2 million during the 1999 quarter compared with $7.5 million during the prior year quarter. Much of the increase in SG&A was represented by personnel and occupancy expenses necessary to support the revenue growth experienced in 1998 and planned for 1999. SG&A as a percent of net sales increased from 12.5% during the 1998 quarter to 15.6% during the 1999 quarter as a result of higher expense combined with lower sales. Amortization expense increased to $409 thousand from $217 thousand in the same quarter one year ago. This increase is attributable to the increase in goodwill resulting from acquisitions during the twelve months ended March 31, 1999. The Company expects further increases in amortization expense in subsequent quarters as a result of acquisitions completed in the first quarter of 1999. Net interest expense (interest expense less investment income) for the quarter increased to $500 thousand from $268 thousand for the prior year quarter as a result of higher borrowings required to support increased working capital and to fund recent acquisitions. The Company expects similar increases in interest expense for the remainder of 1999 as a result of acquisitions completed in the first quarter of 1999. The effective tax rate for the quarter increased to 40.5% in 1999 from 36.1% in 1998. This increase is due to anticipated higher state income taxes resulting from several acquisitions. Net income decreased 57.2% to $1.2 million from $2.8 million in the prior year quarter. Diluted earnings per common share decreased 59.3% to $0.11 from $0.27. 7 Orders for the Company's products and services during the quarter ended March 31, 1999 increased to $79.2 million from $77.5 million during the 1998 quarter. The Company's order backlog was a record $188.0 million at March 31, 1999 compared with $131.8 million at December 31, 1998 and $89.4 million one year ago. The growth in backlog from December 31, 1998 to March 31, 1999 is the result of orders exceeding shipments during the first quarter of 1999 combined with backlog obtained from three acquisitions during the quarter. The Company manages its operations through two business segments: domestic and international. Each unit sells train control and train signal products as well as services to railroads and transit authorities. The international business segment sells the Company's products and services outside the U.S. The Company is reporting business segment information in accordance with the provisions of Financial Accounting Standards No. 131, Disclosures about segments of an Enterprise and Related Information which was issued in June 1997. Prior to a series of acquisitions and establishment of new foreign subsidiaries, which occurred between 1995 and 1998, the Company had only one business segment. Because of the desire to market its products and services on a global scale, the Company began to manage its operations using the domestic and international approach in fiscal year 1997. Harmon Industries evaluates performance based upon net operating profit. Administrative functions such as finance, treasury and information systems are centralized. However, where applicable portions of the administrative function expenses are allocated between the operating segments. The operating segments do not share manufacturing or distribution facilities. In the event any materials and/or services are provided to one operating segment by the other, the transaction is valued according to the company's transfer policy, which approximates market price. The costs of operating the manufacturing plants are captured discretely within each segment. The Company's property, plant and equipment, inventory and accounts receivable are captured and reported discretely within each operating segment. Summary financial information for the segments is as follows (dollars in thousands):
Three months ended Three months ended March 31, 1999 March 31, 1998 USA OPERATIONS Net Sales 56,228 56,065 Operating Income/(Loss) 2,755 3,969 Assets 193,226 133,966 Accounts Receivable 54,345 43,866 Inventory 45,612 41,109 INTERNATIONAL OPERATIONS Net Sales 2,725 4,493 Operating Income/(Loss) (234) 701 Assets 6,016 7,002 Accounts Receivable 3,977 3,251 Inventory 510 376
8 CONSOLIDATED Net Sales 58,953 60,558 Operating Income/(Loss) 2,521 4,670 Assets 199,242 140,968 Accounts Receivable 58,322 47,117 Inventory 46,122 41,485
FINANCIAL CONDITION AT MARCH 31, 1999 At March 31, 1999, the Company had $39.1 million in liquidity. This consisted of $4.2 million in cash and cash equivalents plus $34.9 million available under bank lines of credit. The current ratio at March 31, 1999 was 2.60 to 1 compared to 2.05 to 1 at December 31, 1998 and 2.45 to 1 at March 31, 1998. The increase in the current ratio from December 31, 1998 to March 31, 1999 is principally the result of increases in accounts receivable and inventories, primarily resulting from the acquisitions discussed below, combined with decreases in trade accounts payable and accrued payroll, bonus and benefit plan obligations from 1998 year-end levels. Cash used in operating activities for the three months ended March 31, 1999 was $14.3 million compared to $7.8 million for the same period one year ago. ACQUISITIONS During the quarter ended March 31, 1999, the Company completed three acquisitions. On March 12, 1999, the Company acquired all of the issued and outstanding stock of Syseca, Inc. (`Syseca'). Syseca is a leader in the design and installation of operations control systems for the transportation and energy markets. Its capabilities for the rail transportation industry include train control, centralized traffic control, train movement planning, automatic train supervision, supervisory control and data acquisition systems, network optimization and automatic vehicle identification systems. Syseca has locations in Marina del Rey, CA and Carrollton, TX. On March 18, 1999, the Company acquired the business of DJR, Inc. (`DJR') of Glenelg, MD. DJR installs and maintains products and equipment used on railroads and by railroad-related industries. Its customers are located throughout the mid-Atlantic region. On March 25, 1999, the Company acquired the business of Golden Gate Switchgear Co., Inc. (Golden Gate') of Napa, CA. Golden Gate is a manufacturer of AC and DC switchgear for electrified rail and commercial applications. These acquisitions did not have a significant impact on the Company's operating results during the quarter ended March 31, 1999. 9 SUBSEQUENT EVENTS On April 30, 1999, the Company acquired majority control of Angiolo Siliani S.p.A. and Siliani Elettronica ed Impianti S.p.A. (collectively, `Siliani'). With locations in Florence and Genoa, Italy, Siliani was, prior to the acquisitions, the largest independent Italian rail supply company with revenues in excess of $30 million. The companies will be renamed Siliani Harmon and will continue to operate in their primary markets of train control and train inspection products and services. YEAR 2000 ISSUE Year 2000 issue or Y2k refers to the practice in many existing computer programs that uses only the last two digits when designating a year. Therefore, these programs cannot distinguish a year that begins with 19 from a year that begins with 20. If not corrected, many computer applications could fail or create erroneous results beginning January 1, 2000. BACKGROUND In 1997, the Company's Management Information Systems Steering Team developed a long-range plan to consolidate substantially all of its domestic operations onto a single computer operating system. The software vendor chosen was the one that currently supplies the largest of the Company's three primary operating systems. The benefits of this consolidation are increased efficiency and uniformity throughout the Company, particularly in the areas of manufacturing, inventory management and engineering, as well as achieving Y2k compliance. READINESS PROJECT MANAGEMENT: To properly manage and coordinate the Company's Y2k efforts, the Management Information Systems Steering Team, using a formal team structure, appointed a Director of Y2k Compliance who is accountable to the chief executive officer and executive staff for Y2k compliance. This person supervises various sub-teams in the following areas: SYSTEM Y2K COMPLIANCE: To achieve Y2k compliance, the Company completed one systems upgrade in September 1998, one systems conversion in May 1999 and will perform another upgrade in June 1999. An inventory of workstation hardware identified over 300 personal computers that require installation of Y2k compliant systems boards. These boards are scheduled to be installed by September 1999. PRODUCT Y2K COMPLIANCE: A review by the Company of the products it sells has thus far identified a minimal number of areas of Y2k non-compliance. One area involves a vendor-supplied operating system. The Company is currently awaiting a proposed solution from the manufacturer. An installed base of fewer than ten is affected by this issue. All customers have been informed of this problem and are being kept up-to-date with the progress. Another potential issue involves a clock chip that the Company has been informed is not Y2k compliant. The Company is conducting a review to determine if and when this component may have been used in any of its products. Additional product modifications may be necessary following completion of tests which are in progress by certain customers. The Company believes that none of the Y2k issues described above, if not corrected, would jeopardize the systems of any of its customers or 10 the safety of the public at large. While final action plans are not yet complete, the Company does not believe the costs necessary to achieve Y2k compliance for its products will be material to the Company's financial statements on a consolidated basis. SUPPLIER Y2K COMPLIANCE: The Company is nearing completion of a survey of all significant vendors to determine if the Company's operations could be materially impacted by the failure of key vendors to achieve Y2k compliance. The next step is to determine which vendor responses require follow-up or audit. Where necessary, alternate suppliers or other contingency plans are scheduled to be finalized by September 1999. FACILITY Y2K COMPLIANCE: The Company is presently testing manufacturing and production equipment, telephone systems, security systems, and other peripheral devices associated with the Company's facilities for Y2k compliance. CUSTOMER AND INVESTOR REQUESTS FOR Y2K COMPLIANCE INFORMATION: The Company has designated two members of senior management as points of contact for Y2k compliance information requests from external constituents; one for customers and one for current and prospective shareholders. COSTS As discussed above, Y2k compliance is one of two benefits achieved by the Company's upgrade and conversion efforts. While the Company is monitoring the costs of these projects against established budgets, it is not possible to allocate these costs between the two objectives; the benefits of a common operating system and the requirement for Y2k compliance. The Company incurred operating expenses of approximately $1.1 million in 1998 and has budgeted operating expenses of $1.1 million in 1999. These costs will be funded by cash flow from operations. RISKS The Company's primary Y2k risks are in the timing of the conversion and upgrade planned for 1999 and the potential for failure of key vendors to achieve Y2k compliance. Operations of the Company's Riverside, CA location could be impacted if the upgrade is not completed by the time it is necessary to enter dates beyond December 31, 1999. The Company believes the impact of Y2k non-compliance at this location would be limited to decreased productivity and the substitution of manual processes for certain automated ordering and planning processes. The evaluation of the Company's exposure resulting from non-compliance by key vendors is in process and the impact, if any, is therefore not yet known. CONTINGENCY PLANS The Company is upgrading the operating system at its Riverside, CA location to be Y2k compliant to minimize the chance of any disruptions in production if the conversion of that location to the chosen common operating system is delayed. The Company is also identifying alternative suppliers for certain critical components. 11 PART II. OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits:
Exhibit Number Exhibit Page(s) ------- ------- ------- 11 Computation of per share earnings 13 27 Financial Data Schedule 14
(b) Reports on Form 8-K: On March 29, 1999, the Company filed a report on Form 8-K containing Item 2, Acquisition or Disposition of Assets, to report the acquisition of Syseca, Inc. on March 12, 1999. 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. HARMON INDUSTRIES, INC.
Date: May 17, 1999 /s/Bjorn E. Olsson ---------------------------------------- Bjorn E. Olsson, President and Chief Executive Officer Date: May 17, 1999 /s/Charles M. Foudree ------------------------------------- Charles M. Foudree, Executive Vice President-Finance Date: May 17, 1999 /s/Stephen L. Schmitz -------------------------------------- Stephen L. Schmitz, Vice President-Controller
12 EX-11 2 EXHIBIT 11 Exhibit 11 Harmon Industries, Inc. Form 10-Q Computation of Per Share Earnings (in thousands, except earnings per share)
Three Months ended March 31, ------------------------------------------- 1999 1998 ---- ---- Basic: Net earnings $ 1,203 $ 2,812 ----------------- ------------------ ----------------- ------------------ Weighted average shares outstanding 10,744 10,493 Shares representing unearned compensation (12) (12) ----------------- ------------------ Total 10,732 10,481 ----------------- ------------------ ----------------- ------------------ Basic earnings per share $ 0.11 $ 0.27 ----------------- ------------------ ----------------- ------------------ Diluted: Net earnings $ 1,203 $ 2,812 ----------------- ------------------ ----------------- ------------------ Weighted average shares outstanding 10,744 10,493 Shares representing unearned compensation (12) (12) Equivalent shares under option plans 132 127 ----------------- ------------------ Total 10,864 10,608 ----------------- ------------------ ----------------- ------------------ Diluted earnings per share $ 0.11 $ 0.27 ----------------- ------------------ ----------------- ------------------
13 EX-27 3 EXHIBIT 27
5 1,000 3-MOS DEC-31-1999 JAN-01-1999 MAR-31-1999 4,237 0 58,648 (326) 46,122 123,092 66,916 (37,685) 199,242 47,381 54,891 0 0 2,724 86,580 199,242 58,953 58,953 46,971 46,971 9,579 0 563 2,021 818 1,203 0 0 0 1,203 0.11 0.11
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