<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 March 1, 1997 Commission File No.: 1-14130
MSC INDUSTRIAL DIRECT CO., INC.
(Exact name of registrant as specified in its charter)
New York 11-3289165
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
151 Sunnyside Blvd.
Plainview, NY 11803-1592
(Address of principal executive offices, including zip code)
(516) 349-7100
(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
----- -----
Shares of Common Stock, par value $.001, outstanding as of April 10, 1997:
Class A - 14,853,429 Class B - 18,975,000
<PAGE>
MSC INDUSTRIAL DIRECT CO., INC.
INDEX
PART I. FINANCIAL INFORMATION Page No.
ITEM 1. Consolidated Financial Statements (Note 1)
Consolidated Balance Sheets -
March 1, 1997 and August 31, 1996 3
Consolidated Statements of Income -
Thirteen and twenty-six weeks ended March 1, 1997 and
March 2, 1996 4
Consolidated Statement of Shareholders' Equity -
Twenty-six weeks ended March 1, 1997 5
Consolidated Statements of Cash Flows -
Twenty-six weeks ended March 1, 1997 and March 2, 1996 6
Notes to Consolidated Financial Statements 7
ITEM 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 10
PART II. OTHER INFORMATION
ITEM 6. Exhibits and Reports on Form 8-K 13
SIGNATURES 14
Page 2
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM I. Consolidated Financial Statements
MSC INDUSTRIAL DIRECT CO., INC.
Consolidated Balance Sheets
<TABLE>
<CAPTION>
(in thousands, except share data) March 1, August 31,
1997 1996
--------- ---------
ASSETS (unaudited) (audited)
<S> <C> <C>
Current Assets:
Cash and cash equivalents $ 2,940 $ 1,679
Accounts receivable, net of allowance for doubtful
accounts of $1,751 and $1,319, respectively 57,042 41,042
Inventories 176,266 152,620
Due from officers, employees and affiliated companies 716 1,052
Prepaid expenses and other current assets 1,975 1,792
Deferred income tax assets 9,027 9,920
Prepaid Federal income tax payments 4,512 4,512
--------- ---------
Total current assets 252,478 212,617
--------- ---------
Property, Plant and Equipment, net 47,695 38,989
--------- ---------
Other Assets:
Goodwill 16,072 8,224
Other 4,493 5,654
--------- ---------
20,565 13,878
--------- ---------
$ 320,738 $ 265,484
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 10,878 $ 13,270
Accrued liabilities 32,689 31,568
Income taxes payable -- 1,508
Current portion of long-term debt 51 2,486
--------- ---------
Total current liabilities 43,618 48,832
Long-Term Notes Payable 21,282 42,191
Other Long-Term Liabilities 84 110
Deferred Income Tax Liabilities 1,927 1,780
--------- ---------
Total liabilities 66,911 92,913
--------- ---------
Shareholders' Equity:
Class A common stock; $0.001 par value; 100,000,000 shares authorized;
14,851,858 and 8,311,394 shares, respectively, issued and outstanding 15 8
Class B common stock; $0.001 par value; 50,000,000 shares authorized;
18,975,000 shares and 23,475,000 shares, respectively, issued and outstanding 19 24
Additional paid-in capital 210,811 145,628
Retained earnings 45,263 29,482
--------- ---------
256,108 175,142
Deferred stock compensation (2,281) (2,571)
--------- ---------
Total shareholders' equity 253,827 172,571
--------- ---------
$ 320,738 $ 265,484
========= =========
</TABLE>
The accompanying notes are an integral part of these
consolidated balance sheets.
Page 3
<PAGE>
MSC INDUSTRIAL DIRECT CO., INC.
Consolidated Statements of Income
(unaudited)
<TABLE>
<CAPTION>
Thirteen Weeks Ended Twenty-Six Weeks Ended
------------------------ ------------------------
March 1, March 2, March 1, March 2,
(in thousands, except per share data) 1997 1996 1997 1996
--------- --------- --------- ---------
(Note 1) (Note 1)
<S> <C> <C> <C> <C>
Net Sales $ 104,685 $ 74,631 $ 196,899 $ 144,312
Cost of Goods Sold 61,975 43,945 115,922 84,604
Gross Profit 42,710 30,686 80,977 59,708
Operating Expenses 28,035 20,381 54,938 40,637
--------- --------- --------- ---------
Income from Operations 14,675 10,305 26,039 19,071
--------- --------- --------- ---------
Other Income (Expense):
Interest income 143 548 349 549
Interest expense (88) (521) (206) (1,207)
Other income (expense), net (131) 88 (98) 222
--------- --------- --------- ---------
(76) 115 45 (436)
--------- --------- --------- ---------
Income before Provision for Income Taxes 14,599 10,420 26,084 18,635
Income Tax Provision (Credit) (Note 3) 5,768 (530) 10,303 (303)
--------- --------- --------- ---------
Net Income $ 8,831 $ 10,950 $ 15,781 $ 18,938
========= ========= ========= =========
Net Income per Common Share (Note 4) $ 0.26 $ 0.47
========= =========
Weighted Average Number of Common Shares Outstanding 34,139 33,835
========= =========
</TABLE>
The accompanying notes are an integral part of these
consolidated statements.
Page 4
<PAGE>
MSC INDUSTRIAL DIRECT CO., INC.
Consolidated Statement of Shareholders' Equity
(unaudited)
<TABLE>
<CAPTION>
(in thousands) Class A Class B
Common Stock Common Stock Additional Deferred
------------------ ------------------- Paid-In Retained Stock
Shares Amount Shares Amount Capital Earnings Compensation Total
-------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Twenty-six weeks ended March 1, 1997:
Balance, August 31, 1996 (Note 1) 8,311 $ 8 23,475 $ 24 $145,628 $ 29,482 $ (2,571) $172,571
Exchange of Class B common stock for
Class A common stock 4,500 5 (4,500) (5) -- -- -- --
Secondary public offering of common stock,
net of costs of offering of $3,306 2,000 2 -- -- 64,442 -- -- 64,444
Exercise of common stock options 39 -- -- -- 741 -- -- 741
Net income -- -- -- -- -- 15,781 -- 15,781
Amortization of deferred stock compensation -- -- -- -- -- -- 290 290
-------- -------- -------- -------- -------- -------- -------- --------
Balance, March 1, 1997 14,850 $ 15 18,975 $ 19 $210,811 $ 45,263 $ (2,281) $253,827
======== ======== ======== ======== ======== ======== ======== ========
</TABLE>
The accompanying notes are an integral part of this
consolidated statement.
Page 5
<PAGE>
MSC INDUSTRIAL DIRECT CO., INC.
Consolidated Statements of Cash Flows
(unaudited)
<TABLE>
<CAPTION>
(in thousands) Twenty-Six Weeks Ended
------------------------
March 1, March 2,
1997 1996
--------- ---------
<S> <C> <C>
Cash Flows from Operating Activities:
Net income $ 15,781 $ 18,938
--------- ---------
Adjustments to reconcile net income to net cash
Provided by (used in) operating activities:
Deferred income taxes -- (3,966)
Depreciation and amortization 2,497 1,285
Provision for doubtful accounts 519 397
Gain on disposal of property and equipment -- (33)
Changes in operating assets and liabilities, net of effect from
acquisitions:
Accounts receivable (11,192) (8,673)
Inventories 5,147 (24,064)
Prepaid expenses and other current assets 988 (402)
Other assets 1,190 (447)
Accounts payable and other current liabilities (9,462) 6,511
Other long-term liabilities 121 126
--------- ---------
(10,192) (29,266)
--------- ---------
Net cash provided by (used in) operating activities 5,589 (10,328)
--------- ---------
Cash Flows from Investing Activities:
Expenditures for property, plant and equipment (8,724) (9,046)
Cash paid for acquisitions, net of cash acquired (27,171) --
--------- ---------
Net cash used in investing activities (35,895) (9,046)
--------- ---------
Cash Flows from Financing Activities:
Net proceeds from public offering of common stock 64,444 131,509
Net proceeds from exercise of common stock options 741 --
Long-term borrowings 10,672 52,540
Repayments of long-term debt (44,626) (64,866)
Repayments of subordinated debt to shareholders -- (11,778)
Repayments from officers, employees and affiliates 336 791
Distributions to shareholders -- (61,963)
--------- ---------
Net cash provided by financing activities 31,567 46,233
--------- ---------
Net Increase in Cash and Cash Equivalents 1,261 26,859
Cash and Cash Equivalents - beginning of period 1,679 681
--------- ---------
Cash and Cash Equivalents - end of period $ 2,940 $ 27,540
========= =========
</TABLE>
The accompanying notes are an integral part of these
consolidated statements.
Page 6
<PAGE>
Notes to Consolidated Financial Statements
(in thousands except per share data)
(unaudited)
1. MSC Industrial Direct Co., Inc. ("MSC" or the "Company") was incorporated
in the State of New York on October 25, 1995, as a holding company for the
purpose of (i) issuing 8,050 shares of Class A Common Stock in an initial
public offering ("IPO") and (ii) issuing 24,000 shares of Class B Common
Stock to the shareholders of Sid Tool Co., Inc. (the "Operating
Subsidiary") in exchange for their then outstanding 30 shares of common
stock of the Operating Subsidiary immediately prior to the effective date
of MSC's IPO.
MSC did not have any significant operating activity from its inception
until December 20, 1995, the closing date of the IPO.
The consolidated financial statements for the twenty-six weeks ended March
2, 1996 include the results of operations of the operating subsidiary only,
through the date of the IPO, and of MSC's consolidated results of
operations thereafter. All references to a year are to the Company's fiscal
year, which ends on the Saturday nearest August 31 of such year.
2. Reference is made to the Notes to Consolidated Financial Statements
contained within the Company's audited financial statements for the year
ended August 31, 1996 included in the Company's annual report on Form 10-K.
In the opinion of management, the interim unaudited financial statements
included herein reflect all adjustments necessary, consisting of normal
recurring adjustments, for a fair presentation of such data on a basis
consistent with that of the audited data presented therein. The results of
operations for interim periods are not necessarily indicative of the
results to be expected for a full year.
3. As a result of the IPO, the Operating Subsidiary no longer qualified as a
Subchapter "S" corporation, and became subject to "C" corporation taxation.
The provision for income taxes for the twenty-six weeks ended March 2, 1996
reflects "S" corporation rates through the date of the IPO, and "C"
corporation rates thereafter.
On September 25, 1996, the Company completed a secondary offering of 6,500
shares of Class A Common Stock, of which 2,000 shares were sold by the
Company and 4,500 shares were converted from Class B to Class A Common
Stock and sold by existing shareholders. Net proceeds received by the
Company as a result of this offering were approximately $64,444.
Page 7
<PAGE>
4. Net income per common share was computed by dividing the Company's net
income by the weighted average number of common shares and common share
equivalents outstanding during the thirteen and twenty-six week periods
ended March 1, 1997. Pro forma net income for the thirteen and twenty-six
week periods ended March 2, 1996 reflects the pro forma effect of "C"
corporation taxation as follows:
<TABLE>
<CAPTION>
Thirteen Twenty-Six
Weeks Ended Weeks Ended
March 2, 1996 March 2, 1996
------------- -------------
<S> <C> <C>
Income before provision for income taxes $10,420 $18,635
Pro forma provision for income taxes 4,115 7,361
------- -------
Pro forma net income $ 6,305 $11,274
======= =======
Pro forma net income per common share $ 0.20 $ 0.39
======= =======
Pro forma weighted average number of
common shares outstanding 31,086 29,281
======= =======
</TABLE>
5. During the third quarter of 1996, the Company announced that it would be
relocating its multi-location Long Island, New York warehouse and
distribution center operation to a new, single-location, Company-owned
facility near Harrisburg, Pennsylvania. The Pennsylvania distribution
center commenced shipping in September 1996, and became fully operational
during the second quarter of fiscal 1997. The estimated cost associated
with the relocation of the Company's existing Long Island facilities is
approximately $8,600, which is primarily comprised of personnel relocation
and severance costs, lease abandonment costs, and moving and disposal
costs, and this amount has been reflected as a charge to income from
operations for the year ended August 31, 1996. Costs of approximately
$4,754 were charged against the liability as of March 1, 1997, and the
remaining $3,846 is included in accrued liabilities in the accompanying
consolidated balance sheet as of March 1, 1997.
6. The Company provides for income taxes in accordance with Statement of
Financial Accounting Standards ("SFAS") No. 109, "Accounting for Income
Taxes". Under the asset and liability method specified by SFAS No. 109, the
deferred tax amounts included in the balance sheet are determined based on
the differences between the financial statement and tax bases of assets and
liabilities as measured by the enacted tax rates that will be in effect
when these differences reverse. Differences between assets and liabilities
for financial statement and tax return purposes are principally related to
inventories and certain accrued liabilities. Deferred income tax assets and
liabilities were initially established during 1996 due to the Company's
taxation as a "C" Corporation since the closing date of its IPO in December
1995.
Page 8
<PAGE>
7. During March 1995, SFAS No. 121, "Accounting for the Impairment of
Long-Lived Assets to be Disposed of", was issued by the Financial
Accounting Standards Board ("FASB"). This statement establishes financial
accounting and reporting standards for the impairment of long-lived assets,
certain identifiable intangibles, and goodwill related to those assets to
be held and used, and for long-lived assets and certain identifiable
intangibles to be disposed of. This statement is effective for financial
statements for fiscal years beginning after December 15, 1995 (fiscal 1997
for the Company).
During October 1995, the FASB issued SFAS No. 123, "Accounting for
Stock-Based Compensation". This statement establishes financial accounting
and reporting standards for stock-based employee compensation plans. The
provisions of SFAS No. 123 encourage entities to adopt a fair value based
method of accounting for stock compensation plans; however, these
provisions also permit the Company to continue to measure compensation
costs under pre-existing accounting pronouncements. If the fair value based
method of accounting is not adopted, SFAS No. 123 requires pro forma
disclosures of net income and net income per share in the notes to the
financial statements. The accounting requirements of SFAS No. 123 are
effective for transactions entered into in fiscal years that begin after
December 15, 1995. The disclosure requirements of SFAS No. 123 are
effective for financial statements for fiscal years beginning after
December 15, 1995 (fiscal 1997 for the Company).
The effect, if any, on the consolidated financial statements, of
implementation of SFAS No. 121 is not expected to be material. The Company
will adopt the provisions of SFAS No. 123 by providing the pro forma
disclosures in its annual report on Form 10-K for fiscal 1997.
In March 1997, the FASB issued SFAS No. 128, "Earnings per Share" ("EPS").
This statement establishes standards for computing and presenting EPS,
replacing the presentation of currently required primary EPS with a
presentation of Basic EPS. For entities with complex capital structures,
the statement requires the dual presentation of both Basic EPS and Diluted
EPS on the face of the consolidated statements of operations. Under this
new standard, Basic EPS is computed based on weighted average shares
outstanding and excludes any potential dilution; Diluted EPS reflects
potential dilution from the exercise or conversion of securities into
common stock or from other contracts to issue common stock and is similar
to the currently required fully diluted EPS. SFAS No. 128 is effective for
financial statements issued for periods ending after December 15, 1997 (the
second quarter of fiscal 1998 for the Company), including interim periods,
and earlier application is not permitted. When adopted, the Company will be
required to restate its EPS data for all periods presented. The Company
does not expect the impact of the adoption of this statement to be material
to previously reported EPS amounts.
Page 9
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Certain information set forth herein contains forward-looking statements, as
such term is defined in Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Such statements are subject to
certain risks and uncertainties discussed herein, which could cause actual
results to differ materially from those in the forward-looking statements.
Overview
MSC Industrial Direct Co., Inc. ("MSC" or the "Company") was formed in October
1995 as a holding company to hold all of the outstanding capital stock of Sid
Tool Co., Inc. (the "Operating Subsidiary"), which has conducted business since
1941.
MSC is one of the largest direct marketers of a broad range of industrial
products to small and mid-sized industrial customers throughout the United
States. The Company distributes a full line of industrial products, such as
cutting tools, abrasives, measuring instruments, machine tool accessories,
safety equipment, fasteners, welding supplies and electrical supplies, intended
to satisfy its customers' maintenance, repair and operations ("MRO") supplies
requirements. The Company offers approximately 323,000 stock keeping units
("SKUs") through its 3,560 page master catalog and weekly, monthly and quarterly
specialty and promotional catalogs, newspapers and brochures, which are
supported by three distribution centers and over 40 customer service locations.
Most of the Company's products are carried in stock, and orders for these
products are typically fulfilled on the day the order is received.
Results of operations reflect the operations of the Operating Subsidiary only,
for all periods through December 20, 1995, the date of the Company's initial
public offering, and of the Company and its subsidiaries subsequent to that
date.
During the twenty-six week period ended March 1, 1997, the Company completed the
acquisitions of Brooks Precision Supply, Inc., Dolin Supply Co. Inc., Anderson
Industrial Supply, Inc., and Enco Manufacturing Company, all of which are
engaged in similar businesses to that of MSC.
The Company is recording an annual non-cash charge of approximately $0.6 million
from fiscal 1996 through fiscal 2000, related to deferred compensation resulting
from the issuance of restricted stock to certain employees.
Results of Operations -
Thirteen weeks ended March 1, 1997 and March 2, 1996
Net sales increased by $30.1 million, or 40.3%, to $104.7 million in the second
quarter of 1997 from $74.6 million in the second quarter of 1996. This increase
was attributable to an increase in sales to the Company's existing customers, an
increase in the number of active customers and the effect of the acquisitions
made subsequent to March 2, 1996. The increase in sales to existing customers
was derived primarily from an increase in the number of SKUs offered.
Page 10
<PAGE>
Gross profit increased by $12.0 million, or 39.2%, to $42.7 million in the
second quarter of 1997, from $30.7 million in the second quarter of 1996,
primarily attributable to increased sales. As a percentage of sales, gross
profit decreased from 41.1% to 40.8%, resulting primarily from slightly lower
margins realized from customers and product lines gained through the Company's
acquisitions.
Operating expenses increased by $7.6 million, or 37.6%, to $28.0 million in the
second quarter of 1997, from $20.4 million in the second quarter of 1996. As a
percentage of sales, operating expenses decreased from 27.3% to 26.8%, as a
result of both operating efficiencies and the distribution of fixed expenses
over a larger revenue base.
Net income decreased by $2.2 million, to $8.8 million in the second quarter of
1997 from $11.0 million in the second quarter of 1996, but increased by $2.5
million as compared with pro forma 1996 net income of $6.3 million, which gives
pro forma effect to "C" corporation taxation for the entire quarter. The
increase in net income on a pro forma basis is primarily attributable to
increased sales and a reduction of operating expenses as a percentage of sales.
Results of Operations -
Twenty-six weeks ended March 1, 1997 and March 2, 1996
Net sales increased by $52.6 million, or 36.4%, to $196.9 million during the
first half of 1997 from $144.3 million in the first half of 1996. This increase
was attributable to an increase in sales to the Company's existing customers, an
increase in the number of active customers and the effect of the acquisitions
made subsequent to March 2, 1996. The increase in sales to existing customers
was derived primarily from an increase in the number of SKUs offered.
Gross profit increased by $21.3 million, or 35.6%, to $81.0 million in the first
half of 1997, from $59.7 million in the first half of 1996, primarily
attributable to increased sales. As a percentage of sales, gross profit
decreased from 41.4% to 41.1%, resulting primarily from slightly lower margins
realized from customers and product lines gained through the Company's
acquisitions.
Operating expenses increased by $14.3 million, or 35.2%, to $54.9 million in the
first half of 1997, from $40.6 million in the first half of 1996. As a
percentage of sales, operating expenses decreased from 28.2% to 27.9%, as a
result of both operating efficiencies and the distribution of fixed expenses
over a larger revenue base.
Net income decreased by $3.1 million, to $15.8 million in the first half of 1997
from $18.9 million in the first half of 1996, but increased by $4.5 million as
compared with pro forma 1996 net income of $11.3 million, which gives pro forma
effect to "C" corporation taxation for the entire period. The increase in net
income on a pro forma basis is primarily attributable to increased sales and a
reduction of operating expenses as a percentage of sales.
Page 11
<PAGE>
Liquidity and Capital Resources
The Company's primary capital needs have been to fund (i) the working capital
requirements necessitated by its sales growth and (ii) prior to the
reorganization (see Note 1 to the consolidated financial statements),
distributions to its then existing shareholders, primarily to satisfy their tax
liabilities resulting from the previous "S" corporation status of the Operating
Subsidiary. The Company's sources of financing have historically been from
operations, bank borrowings under its $80 million credit facility, subordinated
loans from shareholders, and a portion of the proceeds from the 1996 IPO and
1997 secondary offering. The Company completed its IPO on December 20, 1995, and
outstanding subordinated debt to shareholders and credit facility debt as of
that date were repaid out of the net proceeds. Subsequent bank borrowings were
repaid out of the proceeds from the secondary offering completed in September
1996. The Company anticipates that its cash flows from operations and available
lines of credit will be adequate to support its operations and its growth for
the immediate future and for at least the next 24 months.
In March 1996, the Company commenced shipments from its Elkhart, Indiana
distribution center, which provides next day service to most of the midwestern
United States. As a result of the opening of this facility, the Company
significantly increased its inventories to provide for future orders from the
distribution center.
Net cash provided by operating activities increased $15.9 million to $5.6
million from a net cash usage of $10.3 million for the twenty-six week periods
ended March 1, 1997 and March 2, 1996, respectively. The net usage of cash in
1996 was primarily due to purchases of inventory in connection with the initial
stocking of the Elkhart distribution center and introduction of new products.
Net cash used in investing activities for the twenty-six week periods ended
March 1, 1997 and March 2, 1996 was approximately $35.9 million and $9.0
million, respectively. The increase is primarily attributable to cash paid for
acquisitions during 1997.
Net cash provided by financing activities during the twenty-six week periods
ended March 1, 1997 and March 2, 1996 was approximately $31.5 million and $46.2
million, respectively. The change of $14.7 million is primarily attributable to
the difference between the proceeds received from the completion of the
Company's aforementioned public offerings, net of the existing long-term debt
repaid with such proceeds.
Page 12
<PAGE>
PART II. OTHER INFORMATION
ITEM 6. Exhibits and Reports on Form 8-K
( a ) No exhibits have been filed during the quarter for which
this report is filed.
( b ) No reports on Form 8-K have been filed during the quarter
for which this report is filed.
Page 13
<PAGE>
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.
MSC INDUSTRIAL DIRECT CO., INC.
(Registrant)
Dated: April 11, 1997 By: /s/ Mitchell Jacobson
------------------- ------------------------------------------
Mitchell Jacobson
President and Chief Executive Officer
Dated: April 11, 1997 By: /s/ Shelley M. Boxer
------------------- ------------------------------------------
Shelley M. Boxer
Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)
Page 14
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> AUG-30-1997
<PERIOD-START> DEC-01-1996
<PERIOD-END> MAR-01-1997
<CASH> 2,940
<SECURITIES> 0
<RECEIVABLES> 58,793
<ALLOWANCES> (1,751)
<INVENTORY> 176,266
<CURRENT-ASSETS> 252,478
<PP&E> 67,196
<DEPRECIATION> (19,501)
<TOTAL-ASSETS> 320,738
<CURRENT-LIABILITIES> 43,618
<BONDS> 0
0
0
<COMMON> 34
<OTHER-SE> 253,793
<TOTAL-LIABILITY-AND-EQUITY> 320,738
<SALES> 104,685
<TOTAL-REVENUES> 104,685
<CGS> 61,975
<TOTAL-COSTS> 61,975
<OTHER-EXPENSES> 28,035
<LOSS-PROVISION> 519
<INTEREST-EXPENSE> 88
<INCOME-PRETAX> 14,599
<INCOME-TAX> 5,768
<INCOME-CONTINUING> 8,831
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 8,831
<EPS-PRIMARY> 0.26
<EPS-DILUTED> 0.26
</TABLE>
