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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1999
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Commission File Number 0-28174
The Lamaur Corporation
(Exact name of registrant as specified in its charter)
Delaware 68-0301547
(State or other jurisdiction of (I.R.S. Employer
incorporation of organization) Identification No.)
One Lovell Avenue, Mill Valley CA 94941
(Address of principal executive offices) (Zip Code)
(415) 380-8200
(Registrant's telephone number, including area code)
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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 [ ] No [ X ]
At April 30, 1999, there were 7,309,561 shares of the Registrant's $.01 par
value Common Stock outstanding.
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<PAGE>
This quarterly report on Form 10-Q contains historical information and
forward-looking statements. Statements looking forward in time are included in
this Form 10-Q pursuant to the "safe harbor" provision of the Private Securities
Litigation Reform Act of 1995. This Form 10-Q includes forward-looking
statements including but not limited to those regarding future performance of
the retail brands, the Company's ability to attain any particular level of sales
or to be profitable in the future, the Company's ability to meet working capital
requirements, the Company's ability to be in compliance with its loan agreement,
and the Company's expectations regarding the sale of assets or its ability to
achieve other strategic initiatives. These statements involve known and unknown
risks and uncertainties that may cause the Company's actual results in future
periods to be materially different from any future performance suggested herein.
Further, the Company operates in an industry sector where securities values may
be volatile and may be influenced by economic and other factors beyond the
Company's control. In the context of the forward-looking information provided in
this Form 10-Q and in other reports, please refer to the discussions of risk
factors and investment considerations detailed in, as well as the other
information contained in, the Company's filings with the Securities and Exchange
Commission.
<PAGE>
THE LAMAUR CORPORATION
Index to Form 10-Q
March 31, 1999
Page
----
Part I - Financial Information
Item 1. Condensed Financial Statements (Unaudited)
Balance Sheets as of March 31, 1999 and December 31, 1998 4
Statements of Operations for the Three Months Ended
March 31, 1999 and 1998 5
Statements of Cash Flows for the Three Months Ended
March 31, 1999 and 1998 6
Notes to Condensed Financial Statements for the Three
Months Ended March 31, 1999 and 1998 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations for the Three
Months Ended March 31, 1999 and 1998 9
Part II - Other Information
Item 1. Legal Proceedings 12
Item 2. Changes in Securities 12
Item 3. Defaults Upon Senior Securities 12
Item 4. Submission of Matters to a Vote of Security Holders 12
Item 5. Other Information 12
Item 6. Exhibits and Reports on Form 8-K 12
Signature 13
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. CONDENSED FINANCIAL STATEMENTS
THE LAMAUR CORPORATION
CONDENSED BALANCE SHEETS
(In thousands, except share and per share data)
(Unaudited)
March 31, December 31,
1999 1998
----------- -----------
ASSETS
Current Assets:
Cash and cash equivalents $ 359 $ 568
Accounts receivable, net 8,409 10,244
Inventories 8,966 7,969
Prepaid expenses and other current assets 996 511
----------- -----------
Total Current Assets 18,730 19,292
Property, Plant and Equipment, Net 16,907 17,392
Other Assets 24 28
----------- -----------
Total Assets $ 35,661 $ 36,712
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 10,932 $ 10,056
Accrued expenses 2,556 2,623
Accrued salaries, wages and
employee-related expenses 1,218 1,147
Current portion of long-term debt 3,356 3,350
----------- -----------
Total Current Liabilities 18,062 17,176
Long-Term Debt 7,565 8,290
Stockholders' Equity
Preferred stock, $.01 par value, 4,000,000
shares authorized:
Series A Preferred stock, $.01 par value,
1,000,000 shares issued and outstanding at
March 31, 1999 and December 31, 1998
($10.0 million liquidation preference) 8,500 8,500
Series B Preferred stock, $.01 par value,
763,500 shares issued and outstanding at
March 31, 1999 and December 31, 1998
($5.0 million liquidation preference) 5,000 5,000
Common stock, $.01 par value, 12,000,000 shares
authorized, 7,309,561 and 5,939,761 shares
issued and outstanding at March 31, 1999 and
December 31, 1998, respectively 73 59
Additional paid-in-capital 20,410 20,356
Stock subscriptions receivable (50) (50)
Accumulated deficit (23,899) (22,619)
----------- -----------
Total Stockholders' Equity 10,034 11,246
----------- -----------
Total Liabilities and Stockholders' Equity $ 35,661 $ 36,712
=========== ===========
See notes to financial statements.
<PAGE>
THE LAMAUR CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
March 31,
-----------------------
1999 1998
--------- ---------
Net Sales $ 13,047 $ 22,832
Cost of Goods Sold 8,774 13,041
--------- ---------
Gross Margin 4,273 9,791
Selling, General and Administrative Expenses 5,279 8,415
--------- ---------
Operating (Loss) Income (1,006) 1,376
Interest Expense 321 813
Other Income 47 53
--------- ---------
Net (Loss) Income (1,280) 616
Dividends on Series B Preferred Stock (100) (100)
--------- ---------
Net (Loss) Income Available to Common Shareholders $ (1,380) $ 516
========= =========
Basic (Loss) Income per Common Share $ (0.21) $ 0.09
========= =========
Weighted Average Common Shares Outstanding - Basic 6,686 5,765
========= =========
Diluted (Loss) Income per Common Share $ (0.21) $ 0.08
========= =========
Weighted Average Common Shares Outstanding - Diluted 6,686 6,488
========= =========
See notes to financial statements.
<PAGE>
THE LAMAUR CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended
March 31,
-----------------------
1999 1998
--------- ----------
Cash Flows From Operating Activities:
Net (loss) income $ (1,280) $ 616
Adjustments to reconcile net (loss) income to
net cash provided by operating activities:
Loss on disposal of assets 2 3
Non-cash compensation expense 168 --
Depreciation and amortization 506 492
Effect of changes in:
Receivables 1,835 1,950
Inventories (997) 838
Prepaid expenses and other assets (485) 123
Payables 776 (1,168)
Accrued expenses 4 (2,571)
--------- ---------
Net cash provided by operating activities 529 283
Cash Flows From Investing Activities
Additions to property, plant and equipment (19) (114)
--------- ---------
Cash Flows From Financing Activities:
Repayments under revolving credit agreement, net (664) (844)
Repayments of long-term debt (55) (404)
--------- ---------
Net cash used in financing activities (719) (1,248)
--------- ---------
Net Decrease in Cash and Cash Equivalents (209) (1,079)
Cash and Cash Equivalents at Beginning of Period 568 6,465
--------- ---------
Cash and Cash Equivalents at End of Period $ 359 $ 5,386
========= =========
See notes to financial statements.
<PAGE>
THE LAMAUR CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998
(Unaudited)
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1. ORGANIZATION AND OPERATIONS
The Lamaur Corporation ("the Company") develops, formulates, manufactures,
and markets personal hair care products, consisting of shampoos, conditioners,
hair sprays, and other styling aids, for the consumer market and, until July
1998, the professional hair care market. In addition, the Company develops,
formulates, and manufactures hair care, personal care, and household products
for third parties. In July 1998, the Company sold its professional salon brands
and related inventory to Zotos International, Inc., a subsidiary of Shiseido
Co., Ltd., Tokyo, Japan ("Zotos") for net proceeds of $10.0 million. Proceeds
were used primarily to pay down borrowings under the credit agreement with
Norwest Business Credit and to pay down extended accounts payable.
2. SIGNIFICANT ACCOUNTING POLICIES
The accompanying condensed financial statements are unaudited and include
all adjustments, consisting of only normal recurring accruals, that management
considers necessary to fairly present the results for such periods. These
financial statements should be read in conjunction with the financial statements
and notes contained in The Lamaur Corporation's Annual Report on Form 10-K for
the year ended December 31, 1998. Results for interim periods are not
necessarily indicative of results for the full year.
Earnings Per Share - Basic EPS is calculated using income available to
common shareholders divided by the weighted average number of common shares
outstanding during the year. Diluted EPS is similar to basic EPS except that the
weighted average number of common shares outstanding is increased to include the
number of additional common shares that would have been outstanding if the
dilutive potential common shares, such as options, had been issued. The treasury
stock method is used to calculate dilutive shares, which reduces the gross
number of dilutive shares by the number of shares purchasable from the proceeds
of the options assumed to be exercised. In loss years, diluted EPS equals basic
EPS.
Comprehensive Income - Comprehensive income equals net income.
Reclassifications - Certain prior year amounts have been reclassified in
the accompanying financial statements in order to conform with the 1999
presentation.
Inventories are stated at the lower of weighted average cost or market and
include the following:
March 31, December 31,
1999 1998
------------ ------------
(In thousands)
Finished goods $ 5,561 $ 4,542
Work in process 11 164
Raw materials 3,394 3,263
------------ ------------
Total $ 8,966 $ 7,969
============ ============
<PAGE>
THE LAMAUR CORPORATION
NOTES TO FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998 (continued)
(Unaudited)
- --------------------------------------------------------------------------------
3. STOCK OPTION PLANS
In January 1999, the Company issued 1,369,800 shares of its Common Stock to
certain employees and directors. The stock grants were made in conjunction with
the cancellation of outstanding options held by employees and directors. These
shares have vesting schedules ranging from two years to two and one-half years.
The Company recorded compensation expense of approximately $168,000 in
connection with these stock grants. The Company has the right under certain
conditions to repurchase unvested shares at the market price at the date of
grant. 1,129,800 of the shares were issued pursuant to the Company's 1997 Stock
Plan.
4. DISCLOSURES ABOUT SEGMENTS OF AN ENTERPRISE AND RELATED INFORMATION
The Company's operating segments include the Retail Group, Salon Group, and
the Custom Manufacturing Group. As the Retail and Salon Groups have similar
economic characteristics, they have been aggregated into one reportable segment
called the Retail and Salon Group. The Company evaluates performance based on
contribution before fixed expenses. The accounting policies of the segments are
the same as those of the Company.
The Company does not allocate fixed expenses by segment for internal
reporting or decision making purposes and therefore has not disclosed operating
profit by segment. The majority of the Company's fixed expenses are shared
expenses of both reporting segments and consist principally of administration
and manufacturing overhead. The Company's products are manufactured on common
production lines and therefore the Company does not analyze fixed assets or
capital expenditures by segment.
The Company's reportable segments have separate sales departments, and
although the products are similar, they are sold and marketed differently. The
Retail and Salon Group sells hair care products including shampoos,
conditioners, hair sprays, and other styling aids. These products are
distributed to consumer retail outlets and until July 1998, professional salon
and specialty shops. Products sold by the Retail and Salon Group require
substantial marketing support to maintain their sales. The Custom Manufacturing
Group develops and formulates hair care, personal care, and household products
for third parties. This group is service oriented and no significant marketing
is required to support its sales.
Following is the financial information related to the Company's segments
at March 31, 1999 and 1998:
1999 1998
--------- ---------
(In thousands)
Net sales
Retail and Salon Group $ 7,823 $ 19,305
Custom Manufacturing Group 5,224 3,527
--------- ---------
Total net sales 13,047 22,832
Profit before fixed expenses
Retail and Salon Group 1,651 6,193
Custom Manufacturing Group 1,305 983
--------- ---------
Total profit before fixed expenses 2,956 7,176
Fixed expenses 3,962 5,800
--------- ---------
Operating (loss) income (1,006) 1,376
Interest expense 321 813
Other income 47 53
--------- ---------
Net (loss) income $ (1,280) $ 616
========= =========
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998
HISTORICAL RESULTS OF OPERATIONS
Total net sales for the quarter ended March 31, 1999 were $13.0 million,
compared with $22.8 million for the same period in 1998, a decrease of $9.8
million or 42.9%. The decrease is due to the decline in sales of the Company's
retail and salon brands. Willow Lake(R), Style(R), Color Soft(TM), Perma
Soft(R), and Salon Style(R) (retail brands) and the salon brands had sales
declines of $11.1 million during the quarter ended March 31, 1999 as compared
with the same period in 1998. Style(R), Perma Soft(R), and Salon Style(R) have
continued to decline in sales since management began its turnaround efforts in
the first quarter of 1996. Management believes that sales of these and the
Company's other retail brands are likely to continue to decline. The decrease in
net sales of the professional salon brands for the quarter ended March 31, 1999
is attributable to the sale of these brands to Zotos on July 31, 1998. The
Company continues to manufacture certain of these professional salon brands for
Zotos which are sold by the Custom Manufacturing Group at a lower markup over
cost.
Gross margin as a percentage of net sales was 32.8% for the three months
ended March 31, 1999, as compared with 42.9% for the same period in 1998. The
decline in the gross margin as a percentage of net sales for the three months
ended March 31, 1999 is principally due to the sale of lower-margin promotional
merchandise for the Willow Lake(R) line, and a change in product mix. In
addition, as a result of the sale of the professional salon brands and a
decrease in sales of the Company's retail brands, Custom Manufacturing sales,
which are lower margin sales, represented a greater percentage of net sales
resulting in a reduced gross margin as a percentage of sales.
Selling, general and administrative expenses (SG&A) were $5.3 million or
40.5% of net sales for the three months ended March 31, 1999, as compared with
$8.4 million or 36.9% of net sales for the same period last year, a decrease of
$3.1 million. The decrease is principally attributed to reduced marketing
expenses of $2.0 million and reduced freight and brokerage as a result of the
decrease in sales. In addition, personnel, travel and other expenses declined as
a result of the Company's cost cutting efforts and the sale of the professional
salon brands to Zotos. The Company's strategy in 1999 is to focus its limited
resources to support the Willow Lake(R) brand with advertising and consumer
promotion and also to provide limited promotional support for the other retail
brands. There can be no assurance concerning the future performance of Willow
Lake(R) and other brands or the Company's ability to attain any particular level
of sales or to be profitable in the future with the lower level of marketing
support.
Interest expense decreased to $0.3 million for the three months ended
March 31, 1999, as compared with $0.8 million in the same period last year. The
decrease in interest expense is principally attributable to lower borrowings and
lower interest rates under the Company's revolving line of credit and term loan
with Norwest Business Credit.
As a result of the foregoing factors, the net loss for the three months
ended March 31, 1999 was $1.3 million compared with net income of $0.6 million
for the same period in 1998.
LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 1999, the amounts outstanding under the Company's revolving
and term loan facilities were $6.7 million and $3.1 million, respectively, as
compared with $7.4 million and $3.1 million, respectively, as of December 31,
1998. The interest rates on the loans are variable and are tied to Norwest
Bank's base rate which at March 31, 1999 was 7.75%. As of March 31, 1999, the
interest rates on the revolving line of credit and the term loan facility were
10.25% and 10.5%, respectively.
In March 1999, the Company renegotiated the terms and covenants of its loan
agreement with Norwest in the Fifth Amendment to the Amended and Restated Credit
and Security Agreement. This amendment provides for increased advance rates on
eligible receivables and inventory of three percentage points and five
percentage points, respectively. The Company incurred a fee of $100,000 in
conjunction with this amendment, $50,000 of which is not payable until August 1,
1999.
Under the terms of the term loan, the Company may borrow up to $3.1
million. The term loan is due on demand and is payable in full by September 1,
1999.
<PAGE>
Both credit facilities are secured by virtually all the assets of the
Company. Additionally, the credit facilities restrict the payment of dividends,
the Company's ability to incur additional indebtedness and require the Company
to comply with certain financial loan covenants regarding profitability, minimum
net worth, and capital expenditures. As of March 31, 1999, the Company was in
compliance with its financial loan covenants. No assurance can be given that
such compliance will continue.
Total accounts payable exceeding their normal payment terms were
approximately $5.8 million as of March 31, 1999. Because the Company has
announced its intent to obtain financing through a new credit facility and/or
the sale of its manufacturing operations and related assets, major trade
creditors and other creditors have extended their "normal" terms to allow the
Company additional time to make payments. In August 1998, the Company used a
portion of the proceeds from the sale of its professional salon brands to reduce
its extended accounts payable. The Company is operating its business to preserve
working capital in order to pay the Company's current and extended obligations.
To date the Company has been able to make timely shipments to its customers.
In January 1999, the Company issued 1,369,800 shares of its Common Stock to
certain employees and directors. The stock grants were made in conjunction with
the cancellation of outstanding options held by employees and directors. These
shares have vesting schedules ranging from two years to two and one-half years.
The Company recorded compensation expense of approximately $168,000 in
connection with these stock grants. The Company has the right under certain
conditions to repurchase unvested shares at the market price at the date of
grant. 1,129,800 of the shares were issued pursuant to the Company's 1997 Stock
Plan. Management and the Board of Directors believed it was essential to offer
such package in order to retain employees and preserve the value of the
enterprise while the Company evaluated and pursued alternatives.
As of March 31, 1999, the Company is $700,000 in arrears on the payment of
dividends on its Series B preferred stock. The preferred stock provides for an
annual dividend of $400,000, payable in quarterly installments.
The Company's ability to continue operations is dependent on its ability
to generate sufficient cash flow to meet its obligations as they become due, to
comply with the terms and conditions of the amended financing agreement, to
obtain additional financing or refinancing, to reduce aged payables, to reduce
its cost structure, and attain sales and operating levels to be profitable.
In 1998, the Company implemented its cost reduction program which
included a reduction in its workforce and an overall reduction in operating
expenses. The Company will continue to evaluate sales and operating performance
and, if necessary, initiate further cost reductions.
The Company's strategy in 1999 is to focus its limited resources to support
the Willow Lake(R) brand with advertising and consumer promotion and also to
provide limited promotional support for the other retail brands.
The continuing operation of the Company's business is not likely to lead to
improved financial results in the near term. Therefore, in order to pay
creditors and to provide an opportunity to increase the value of the Company's
stock, the Company must sell additional assets, obtain additional financing, or
obtain new business through alternative channels. Management has been actively
pursuing each of these. While no assurance can be given that it will be
successful, management believes that it has made progress towards these
objectives, and is continuing to pursue all avenues to ensure that it can meet
the Company's obligations to creditors.
YEAR 2000
Many computer systems were not designed to properly handle dates beyond
the year 1999. Additionally, these systems may not properly handle certain dates
in 1999. Failure to process dates properly could result in failure or disruption
of the Company's information systems and/or processing equipment. To be Year
2000 compliant, computer systems must correctly process dates before and after
the Year 2000, recognize the Year 2000 as a leap year, accept and display dates
unambiguously and correctly process dates for non-date functions such as
archiving.
Disruptions to the Company's operations may also occur if key suppliers or
customers experience disruptions in their ability to purchase, supply or
transact with the Company due to Year 2000 issues. The Year 2000 readiness of
infrastructure suppliers (utilities, government agencies such as customs, and
shipping organizations) will be critical to the Company's ability to avoid
disruption of its operations.
<PAGE>
The Company installed an enterprise-wide software solution in December
1996. At that time, some modules of the system were not Year 2000 compliant. A
newer release of the same software is certified to be compliant by the software
vendor. The Company's current activity surrounds upgrading to this newer
release. It is the Company's intent to test the functionality and make the
necessary Company-specific modifications to the software. This process is
currently underway and should be completed during the third quarter in 1999. The
Company's contingency plan would be to use the certified-compliant software
without Company-specific modifications. The computer operating system is
certified to be Year 2000 compliant by the vendor.
The Company is also reviewing its computer-dependent manufacturing
activities to determine the necessary hardware and software changes. For all
non-mainframe applications such as personal computers, production-related
equipment, etc., an inventory has been taken of the hardware and software
involved. The Company has researched the status of these items and determined a
course of action to assure compliance. This process is currently scheduled to be
completed by the end of the third quarter in 1999. The Company's electronic data
interchange system, which receives orders from its customers, has already been
certified to be Year 2000 compliant by the software vendor.
The Company will perform remediation procedures concurrent with its
assessment planning. The Company intends to use internal and external resources
to implement, replace and test software and related assets affected by the Year
2000 issue. The Company currently believes that the remediation costs of the
Year 2000 issue will not be material to the Company's results of operations or
financial position and will be absorbed by the Company through normal operating
budgets. The Company does not expect any incremental costs associated with its
Year 2000 remediation activities to be significant. Cumulatively through March
31, 1999, the Company has not incurred a material amount of remediation
expenses.
The Company is working with key suppliers and customers to determine
whether the suppliers' operations and the products and services that they
provide are Year 2000 capable or to monitor their progress toward Year 2000
compliance. The Company has sent questionnaires to its suppliers who furnish
product or services to the Company. The Company may choose to identify those
suppliers it deems critical and pursue other methods of assuring readiness. The
Company is also in the process of surveying customers to determine the status of
their Year 2000 efforts.
While the Company currently expects that the Year 2000 issue will not pose
significant operational problems, delays in adequately addressing Year 2000
issues, or a failure to fully identify all Year 2000 dependencies in the
Company's systems and in the systems of its suppliers, customers and financial
institutions could have material adverse consequences, including delays in the
production, delivery or sale of products. In addition, time and cost estimates
are based on currently available information and are management's best
estimates. However, no assurance can be given that these estimates will be
achieved, and actual results may differ materially from those anticipated.
<PAGE>
PART II - OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
On November 2, 1998, a class action and derivative lawsuit was filed by the
stockholders (on behalf of themselves and the Company) in the Delaware Court of
Chancery in and for New Castle County alleging that the defendant Board of
Directors breached their fiduciary duties to the Company and failed to disclose
certain information in the Company's 1998 Proxy Statement. Plaintiffs seek
injunctive relief, damages, and a recision of all actions approved at the
November 2, 1998 Annual Meeting. In addition, the plaintiffs are seeking the
appointment of a receiver for the Company and changes in the disclosures to
correct what they allege are errors and costs and attorney's fees. The Company
believes the lawsuit is without merit and will defend the action in the best
interest of the stockholders. No discovery has been commenced against the
Company, only minimal discovery has been conducted by plaintiffs, and no
significant dates have been set in the litigation.
Item 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
In January 1999, the Company issued 1,369,800 shares of its Common Stock to
certain employees and directors. The stock grants were made in conjunction with
the cancellation of outstanding options held by employees and directors. These
shares have vesting schedules ranging from two years to two and one-half years.
The Company recorded compensation expense of approximately $168,000 in
connection with these stock grants. The Company has the right under certain
conditions to repurchase unvested shares at the market price at the date of
grant. 1,129,800 of the shares were issued pursuant to the Company's 1997 Stock
Plan. Management and the Board of Directors believed it was essential to offer
such package in order to retain employees and preserve the value of the
enterprise while the Company evaluated and pursued alternatives.
Item 3. DEFAULTS UPON SENIOR SECURITIES
On March 31, 1999, the Company failed to pay a dividend of $100,000 on its
Series B Preferred Stock and is in arrears in the aggregate amount of $700,000.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
Item 5. OTHER INFORMATION
None.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
27 Financial Data Schedule
(b) Reports on Form 8-K:
None.
<PAGE>
SIGNATURE
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.
THE LAMAUR CORPORATION
(Registrant)
------------------------------------------
/s/ John D. Hellmann
Vice President - Finance and Chief Financial Officer
(Principal Financial and Accounting Officer)
DATE: May 14, 1999
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<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
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<RECEIVABLES> 8,868
<ALLOWANCES> 459
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<BONDS> 7,565
0
13,500
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