<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 SEPTEMBER 30, 1999
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM TO
COMMISSION FILE NO. 0-28178
CARBO CERAMICS INC.
(Exact name of registrant as specified in its charter)
DELAWARE 72-1100013
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
600 E. LAS COLINAS BOULEVARD
SUITE 1520
IRVING, TEXAS 75039
(Address of principal executive offices)
(972) 401-0090
(Registrant's telephone number)
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 [ ]
As of October 15, 1999, 14,602,000 shares of the registrant's Common
Stock, par value $.01 per share, were outstanding.
<PAGE>
CARBO CERAMICS INC.
INDEX TO QUARTERLY REPORT ON FORM 10-Q
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION PAGE
<S> <C>
Item 1. Financial Statements
Consolidated Balance Sheets - 3
September 30, 1999 (Unaudited) and December 31, 1998
Consolidated Statements of Income 4
(Unaudited) - Three and nine months ended September 30, 1999 and 1998
Consolidated Statements of Cash Flows 5
(Unaudited) - Nine months ended September 30, 1999 and 1998
Notes to Consolidated Financial Statements 6-7
(Unaudited) - September 30, 1999
Item 2. Management's Discussion and Analysis of Financial 8-10
Condition and Results of Operations
PART II. OTHER INFORMATION
Item 1. Legal proceedings 11
Item 2. Changes in securities 11
Item 3. Defaults upon senior securities 11
Item 4. Submission of matters to a vote of security-holders 11
Item 5. Other information 11
Item 6. Exhibits and reports on Form 8-K 11
Signatures 12
</TABLE>
FORWARD-LOOKING INFORMATION
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements. This Form 10-Q or any other written or
oral statements made by or on behalf of the Company may include forward-looking
statements that reflect the Company's current views with respect to future
events and financial performance. These forward-looking statements are subject
to certain risks and uncertainties that could cause actual results to differ
materially from such statements. This document contains forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995 concerning, among other things, the Company's prospects, developments
and business strategies for its operations, all of which are subject to certain
risks, uncertainties and assumptions. These risks and uncertainties include,
but are not limited to, changes in the demand for oil and natural gas, the
development of alternative stimulation techniques and the development of
alternative proppants for use in hydraulic fracturing. The words "believe",
"expect", "anticipate", "project" and similar expressions identify forward-
looking statements, each of which speaks only as of the date the statement was
made. The Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.
2
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CARBO CERAMICS INC.
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
SEPTEMBER 30,
1999 DECEMBER 31,
(UNAUDITED) 1998
------------- -------------
($ IN THOUSANDS)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents............................................. $ - $ 622
Trade accounts receivable............................................. 13,209 11,300
Inventories:
Finished goods....................................................... 6,714 5,795
Raw materials and supplies.......................................... 4,006 4,432
------------- -------------
Total inventories................................................... 10,720 10,227
Prepaid expenses and other current assets............................. 707 614
Deferred income taxes................................................. 767 1,020
------------- -------------
Total current assets................................................. 25,403 23,783
Property, plant and equipment:
Land and land improvements............................................ 944 459
Buildings............................................................. 6,978 4,613
Machinery and equipment............................................... 87,473 30,772
Construction in progress.............................................. 3,471 51,709
------------- -------------
Total................................................................ 98,866 87,553
Less accumulated depreciation......................................... 14,902 11,909
------------- -------------
Net property, plant and equipment.................................... 83,964 75,644
------------- -------------
Total assets......................................................... $ 109,367 $ 99,427
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank borrowings....................................................... $ 5,309 $ -
Accounts payable...................................................... 1,865 3,634
Accrued payroll and benefits.......................................... 1,938 2,609
Accrued freight....................................................... 1,277 792
Accrued utilities..................................................... 301 350
Accrued income taxes.................................................. 789 266
Other accrued expenses................................................ 354 987
------------- -------------
Total current liabilities............................................ 11,833 8,638
Deferred income taxes.................................................. 4,451 3,520
Shareholders' equity:
Preferred Stock, par value $0.01 per share, 5,000 shares authorized:
none outstanding..................................................... - -
Common Stock, par value $0.01 per share, 40,000,000 shares
authorized: 14,602,000 shares issued and outstanding................. 146 146
Additional paid-in capital............................................ 42,919 42,919
Retained earnings..................................................... 50,018 44,204
------------- -------------
Total shareholders' equity........................................... 93,083 87,269
------------- -------------
Total liabilities and shareholders' equity........................... $ 109,367 $ 99,427
============= =============
</TABLE>
The accompanying notes are an integral part of these statements.
3
<PAGE>
CARBO CERAMICS INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------ ------------------
1999 1998 1999 1998
------- ------- ------- -------
($ IN THOUSANDS, EXCEPT PER SHARE DATA)
<S> <C> <C> <C> <C>
Revenues...................................... $16,888 $22,013 $52,370 $68,394
Cost of goods sold............................ 10,867 10,775 29,369 33,760
------- ------- ------- -------
Gross profit.................................. 6,021 11,238 23,001 34,634
Selling, general and administrative expenses.. 2,130 2,706 9,023 7,563
------- ------- ------- -------
Operating profit.............................. 3,891 8,532 13,978 27,071
Other income (expense):
Interest, net................................ (87) 164 (194) 741
Other, net................................... (1) (37) 14 180
------- ------- ------- -------
(88) 127 (180) 921
------- ------- ------- -------
Income before income taxes.................... 3,803 8,659 13,798 27,992
Income taxes.................................. 1,331 3,293 4,699 10,652
------- ------- ------- -------
Net income.................................... $ 2,472 $ 5,366 $ 9,099 $17,340
======= ======= ======= =======
Earnings per share:
Basic........................................ $ 0.17 $ 0.37 $ 0.62 $ 1.19
======= ======= ======= =======
Diluted...................................... $ 0.17 $ 0.36 $ 0.62 $ 1.17
======= ======= ======= =======
</TABLE>
The accompanying notes are an integral part of these statements.
4
<PAGE>
CARBO CERAMICS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
---------------------
1999 1998
--------- ---------
($ IN THOUSANDS)
<S> <C> <C>
OPERATING ACTIVITIES
Net income............................................................. $ 9,099 $ 17,340
Adjustments to reconcile net income to net cash provided by operating..
activities:
Depreciation......................................................... 2,993 1,587
Deferred income taxes................................................ 1,184 972
Changes in operating assets and liabilities:
Trade accounts receivable........................................... (1,909) (1,031)
Inventories......................................................... (493) (187)
Prepaid expenses and other current assets........................... (93) (268)
Accounts payable.................................................... 99 630
Accrued payroll and benefits........................................ (671) (23)
Accrued freight..................................................... 485 158
Accrued utilities................................................... (49) 40
Accrued income taxes................................................ 523 (102)
Other accrued expenses.............................................. (633) 181
--------- ---------
Net cash provided by operating activities.............................. 10,535 19,297
INVESTING ACTIVITIES
Maturities of investment securities.................................... - 13,905
Purchases of property, plant and equipment............................. (13,181) (30,263)
--------- ---------
Net cash used in investing activities.................................. (13,181) (16,358)
FINANCING ACTIVITIES
Proceeds from bank borrowings.......................................... 15,059 -
Repayments on bank borrowings.......................................... (9,750) -
Dividends paid......................................................... (3,285) (3,285)
--------- ---------
Net cash provided by (used in) financing activities.................... 2,024 (3,285)
--------- ---------
Net decrease in cash and cash equivalents.............................. (622) (346)
Cash and cash equivalents at beginning of period....................... 622 8,899
--------- ---------
Cash and cash equivalents at end of period............................. $ - $ 8,553
========= =========
SUPPLEMENTAL CASH FLOW INFORMATION
Interest paid.......................................................... $ 198 $ -
========= =========
Income taxes paid...................................................... $ 2,992 $ 9,782
========= =========
</TABLE>
The accompanying notes are an integral part of these statements.
5
<PAGE>
CARBO CERAMICS INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
SEPTEMBER 30, 1999
1. BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements of CARBO
Ceramics Inc. 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 only of normal recurring
adjustments, considered necessary for a fair presentation have been included.
The results of the interim periods presented herein are not necessarily
indicative of the results to be expected for any other interim period or the
full year. These financial statements should be read in conjunction with the
consolidated financial statements and notes thereto for the year ended December
31, 1998 included in the Company's Form 10-K Annual Report for the year ended
December 31, 1998.
The consolidated financial statements include the accounts of CARBO Ceramics
Inc. and its wholly owned subsidiaries, CARBO Ceramics Sales Corporation and
CARBO Ceramics (UK) Limited. CARBO Ceramics Sales Corporation was formed on
July 31, 1996 under the laws of Barbados. CARBO Ceramics (UK) Limited was
formed on December 19, 1997 under the laws of Scotland. All significant
intercompany transactions have been eliminated.
2. DIVIDENDS PAID
On July 13, 1999, the Board of Directors declared a cash dividend of $0.075
per common share payable to shareholders of record on July 30, 1999. The
dividend was paid on August 16, 1999.
3. EARNINGS PER SHARE
The following table sets forth the computation of basic and diluted earnings
per share (in thousands, except share and per share data):
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
---------------------- ----------------------
1999 1998 1999 1998
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Numerator for basic and diluted earnings per share:
Net income.......................................... $ 2,472 $ 5,366 $ 9,099 $ 17,340
Denominator:
Denominator for basic earnings per share--
weighted-average shares........................ 14,602,000 14,602,000 14,602,000 14,602,000
Effect of dilutive securities:
Employee stock options............................ 149,929 156,818 87,748 186,413
---------- ---------- ---------- ----------
Dilutive potential common shares................... 149,929 156,818 87,748 186,413
---------- ---------- ---------- ----------
Denominator for diluted earnings per share--
adjusted weighted-average shares................. 14,751,929 14,758,818 14,689,748 14,788,413
========== ========== ========== ==========
Basic earnings per share............................. $ 0.17 $ 0.37 $ 0.62 $ 1.19
========== ========== ========== ==========
Diluted earnings per share........................... $ 0.17 $ 0.36 $ 0.62 $ 1.17
========== ========== ========== ==========
</TABLE>
6
<PAGE>
4. INCOME TAXES
Deferred income taxes reflect the net tax effects of temporary differences
between the carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for income tax purposes. Significant components
of the Company's deferred tax assets and liabilities are as follows:
<TABLE>
<CAPTION>
September 30, December 31,
1999 1998
------------- -------------
<S> <C> <C>
Deferred tax assets: ($ in thousands)
Employee benefits..................... $ 350 $ 436
Inventories........................... 365 356
Other................................. 52 228
------------- -------------
Total deferred tax assets............. 767 1,020
Deferred tax liabilities:
Depreciation.......................... 4,303 3,359
Other................................. 148 161
------------- -------------
Total deferred tax liabilities........ 4,451 3,520
------------- -------------
Net deferred liabilities.............. $ 3,684 $ 2,500
============= =============
</TABLE>
5. BANK BORROWINGS
The Company has a Secured Revolving Credit Agreement (the "Credit
Agreement") with a bank under which it may borrow up to $10.0 million
optionally at either the bank's Base Rate or LIBOR Fixed Rate (as defined in
the Credit Agreement) through December 31, 2000. The weighted-average interest
rate on borrowings against the Credit Agreement was 8.04% for the nine months
ended September 30, 1999. As of September 30, 1999, the Company had an
outstanding balance of $5,309,000 under the Credit Agreement.
6. COMMITMENT
The Company has been operating one of two production lines in its new
manufacturing facility in McIntyre, Georgia since June 1999. As of September
30, 1999, capital expenditures for the plant totaled $59.1 million, including
$255,000 in construction in progress. The Company estimates that it will spend
an additional $500,000 to complete the facility and expects the second
production line to be operational in the fourth quarter of this year.
7
<PAGE>
ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
RESULTS OF OPERATIONS
Three Months Ended September 30, 1999
REVENUES. Revenues for the third quarter 1999 were $16.9 million, a decrease
of 23% from the third quarter 1998. The decrease in revenues was attributable
to a 20% reduction in sales volume due to a reduction in oil and gas drilling
activity and a decrease of approximately 4% in the average selling price due to
competitive pressures. Domestic sales volume decreased by 22% while export
volume decreased by 17%. Sales of lightweight products (CARBOLITE-Registered
Trademark- and CARBOECONOPROP-Registered Trademark-) decreased by 29% while
sales of high strength products (CARBOHSP-TM- and CARBOPROP-Registered
Trademark-) increased by 6%, with CARBOHSP-TM- sales increasing by 32%.
In North America, the majority of the Company's sales are for use in the
stimulation of production in natural gas wells. As a result, sales of the
Company's products are significantly influenced by the level of natural gas
drilling activity in the region. While the number of rigs drilling for natural
gas in the U.S. increased throughout the third quarter of 1999, the average
number or rigs drilling for natural gas was 7% lower than the same period a
year earlier. The number of rigs drilling for natural gas in the U.S. peaked
at 650 in late 1997, averaged 560 in 1998, and fell as low as 362 in April
1999. As of the September 30, 1999 the number of rigs drilling for natural gas
in the U.S. was 597. Management believes that the recent increase in gas
drilling activity in both the U.S. and Canada will result in increased sales
volume of the Company's products during the remainder of 1999. Management
further believes that the long-term worldwide demand for natural gas will
continue to increase due to the abundance, relatively low cost and
environmental benefits of natural gas as a source of energy and that this will
result in increased demand for the Company's products.
GROSS PROFIT. Gross profit for the quarter was $6.0 million or 36% of revenues
as compared to $11.2 million or 51% of revenues for the third quarter 1998.
The most significant factor, other than the decreased sales volumes and pricing
mentioned above, contributing to the decrease in gross profit was an increase
in manufacturing costs associated with the startup and operation of a new
production facility in McIntyre, Georgia. The depreciation on the McIntyre
facility added $1.0 million to cost of goods sold during the third quarter
1999. Operating performance at the McIntyre facility was better than
anticipated during its first full quarter of operation. The plant operated one
of its two production lines at nearly 80% of its stated capacity and variable
manufacturing costs were 2% lower than the Company's New Iberia manufacturing
facility. Gross margins will continue to be adversely affected for the
remainder of the year as the Company expects to continue to operate all three
of its manufacturing facilities, although at less than full capacity, in order
to maintain sufficient inventories of its entire product line in anticipation
of increased demand in 2000.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (SG&A). SG&A expenses were $2.1
million for the third quarter 1999 and $2.7 million for the corresponding
period of 1998. The decreased costs were due to the fact that costs associated
with the startup of the McIntyre facility were expensed in the third quarter of
1998 while all expenses associated with the facility were included in cost of
goods sold following the initial production from the plant in the second
quarter of 1999. Legal expenses and incentive compensation also declined in
the third quarter 1999.
Nine Months Ended September 30, 1999
REVENUES. Revenues for the nine months ended September 30, 1999 were $52.4
million, a decrease of 23% from the same period in 1998. The decrease was due
to an 18% reduction in sales volume due to a reduction in drilling activity and
price reductions brought on by competitive pressures. For the nine months
ended September 30, 1999 the U.S. natural gas rig count was 22 percent lower
than the same period in 1998. However, at the end of September the natural gas
rig count exceeded the year earlier levels for the first time this year.
Domestic sales volume decreased by 23% and export volume by 10% compared to the
comparable period in 1998.
GROSS PROFIT. Gross profit for the nine months ended September 30, 1999 was
$23.0 million or 44% of revenues compared to $34.6 million or 51% of revenues
for the same period in 1998. The decrease was due to decreased sales volume,
decreased selling prices and increased manufacturing costs at all of the
Company's manufacturing
8
<PAGE>
facilities. Increased manufacturing costs were partially offset by lower
freight costs of transporting product from manufacturing facilities to remote
storage facilities.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (SG&A). SG&A expenses were $9.0
million or 17% of revenues for the first nine months of 1999 compared to $7.6
million or 11% of revenues for the same period of 1998. The increased costs
for 1999 were due to start-up costs for the McIntyre facility, the write-off of
Fracmaster, Ltd. receivables in the first quarter and research and development
expenses related to non-oilfield product manufacturing trials, partially offset
by decreased legal expenses and a reduction in incentive compensation due to
the decline in operating results.
LIQUIDITY AND CAPITAL RESOURCES
Cash and cash equivalents totaled a zero balance as of September 30, 1999, a
decrease of $0.6 million from December 31, 1998. The decrease in cash and cash
equivalents was due to cash generated from operations of $10.6 million, net
borrowings of $5.3 million against the Company's line of credit, net of capital
spending of $13.2 million and cash dividends of $3.3 million. Total borrowings
under the Company's line of credit as of September 30, 1999 were $5.3 million.
Capital spending of $13.2 million during the first nine months of 1999 included
$11.0 million related to continuing construction of a new manufacturing
facility in McIntyre, Georgia. Production at the new facility began in early
June. The Company plans to spend an additional $0.5 million for the completion
of the new facility. Funding is expected to be provided by existing cash
balances and cash generated from operations. The Company believes that
existing cash balances, cash generated from operations and, if necessary,
additional borrowing under its line of credit will be sufficient to fund its
operations, dividends and capital spending requirements through the year 2000.
IMPACT OF YEAR 2000
Many currently installed computer systems and software products are coded to
accept, store or report only two digit entries in date code fields. Beginning
in the Year 2000, these date code fields will need to accept four digit entries
to distinguish 21st century dates from 20th century dates. This is the "Year
2000 Issue". As a result, computer systems and software used by many companies
will need to be upgraded to comply with Year 2000 requirements. The Company
could be impacted by year 2000 Issues occurring in its own infrastructure or
faced by its major suppliers, customers, vendors and financial service
organizations. Such Year 2000 Issues could include information errors,
significant information system failures, or failures of equipment, vendors,
suppliers or customers. Any disruption in the Company's operations as a result
of Year 2000 Issues, whether by the Company or a third party, could have a
material adverse effect on the Company's business, financial condition and
results of operations.
The Company previously determined that it would be required to modify or
replace some of its software and certain hardware so that the Company's systems
would properly recognize dates beyond December 31, 1999. The Company presently
believes that it has completed the modifications or replacement of software and
certain hardware necessary to mitigate the Year 2000 Issue, but that if such
modifications and replacements had not been made or completed in a timely
manner, the Year 2000 Issue could have had a material impact on the operations
of the Company.
The Company utilized both internal and external resources to test and
reprogram, replace, or upgrade its software and operating equipment for the
Year 2000 modifications. The total cost of the Year 2000 project was $49,000
with funding provided through operating cash flows. All of the expenditures
were for new hardware and software systems, which were capitalized. All
projects have been completed and no further expenditures are expected.
The Company's actions to resolve the Year 2000 Issue involved the following
four phases: assessment, remediation, testing, and implementation. The Company
has fully completed its assessment of all systems that could be significantly
affected by the Year 2000. The completed assessment indicated that some of the
Company's significant information technology systems could be affected.
However, the major administrative systems (including the general ledger,
billing, and inventory systems) have already been replaced by a Year 2000
compliant system. The assessment also indicated that software and hardware
(embedded chips) used in production and manufacturing systems (hereafter also
referred to as operating equipment) could also be at risk.
9
<PAGE>
Based on a review of its product line, the Company has determined that all of
the products it has sold and will continue to sell are inert and do not require
remediation to be Year 2000 compliant. Accordingly, the Company does not
believe that the Year 2000 presents a material exposure as it relates to the
Company's products. The Company has gathered information about the Year 2000
compliance status of its significant suppliers and subcontractors and will
continue to monitor their compliance.
To date, the Company has completed the remediation phase for its information
technology systems and has completed all anticipated software replacement. The
Company also has completed its testing and has implemented all of its Year 2000
compliant systems.
The remediation of operating equipment was significantly less difficult than
the remediation of the information technology systems because there are minimal
automated systems in the manufacturing process. The Company has completed the
remediation phase of its operating equipment and has completed testing and
implementation.
Currently, the Company has no direct interfaces with third parties. The
Company has surveyed its significant suppliers and subcontractors (external
agents). To date, the Company is not aware of any external agent with a Year
2000 issue that would materially impact the Company's results of operations,
liquidity, or capital resources. However, the Company has no means of ensuring
that external agents will be Year 2000 ready. The inability of external agents
to complete their Year 2000 resolution process in a timely fashion could
materially impact the Company, although the effect of non-compliance by
external agents is not determinable.
Management of the Company believes it has dealt with the Year 2000 issue in an
effective and timely manner by taking the actions noted above. Still,
disruptions in the economy generally resulting from Year 2000 issues could
materially adversely affect the Company. The amount of potential liability and
lost revenue, if any, cannot be reasonably estimated at this time.
The Company has contingency plans for certain critical applications and is
working on such plans for others. These contingency plans involve, among other
actions, manual workarounds, increasing inventories, and adjusting staffing
strategies.
10
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Not applicable
ITEM 2. CHANGES IN SECURITIES
Not applicable
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable
ITEM 5. OTHER INFORMATION
Not applicable
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a. There were no reports filed on Form 8-K during the three months ended
September 30, 1999.
b. Exhibits
27.1 Financial Data Schedule for the interim year to date period ended
September 30, 1999
11
<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.
CARBO CERAMICS INC.
/s/ JESSE P. ORSINI
-------------------------
Jesse P. Orsini
President
& Chief Executive Officer
/s/ PAUL G. VITEK
-------------------------
Paul G. Vitek
Vice President, Finance
Date: October 15, 1999
12
<PAGE>
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit Method of Filing
- ------- -----------------------------
<C> <S> <C>
27.1 Financial Data Schedule..... Filed herewith electronically
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from consolidated
financial statements and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> SEP-30-1999
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 13,209
<ALLOWANCES> 0
<INVENTORY> 10,720
<CURRENT-ASSETS> 25,403
<PP&E> 98,866
<DEPRECIATION> 14,902
<TOTAL-ASSETS> 109,367
<CURRENT-LIABILITIES> 11,833
<BONDS> 0
0
0
<COMMON> 146
<OTHER-SE> 92,937
<TOTAL-LIABILITY-AND-EQUITY> 109,367
<SALES> 52,370
<TOTAL-REVENUES> 52,370
<CGS> 29,369
<TOTAL-COSTS> 29,369
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 194
<INCOME-PRETAX> 13,798
<INCOME-TAX> 4,699
<INCOME-CONTINUING> 9,099
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 9,099
<EPS-BASIC> .62
<EPS-DILUTED> .62
</TABLE>
