<PAGE>
================================================================================
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended JUNE 30, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission file number 1-12147
DELTIC TIMBER CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 71-0795870
(State or other jurisdiction of (I.R.S. Employer Identification Number)
incorporation or organization)
210 E. Elm Street, P. O. Box 7200, El Dorado, Arkansas 71731-7200
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (870) 881-9400
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Name of each exchange on which registered
Common Stock, $.01 Par Value New York Stock Exchange, Inc.
Series A Participating Cumulative New York Stock Exchange, Inc.
Preferred Stock Purchase Rights
Securities registered pursuant to Section 12(g) of the Act: None
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, and (2) has been subject to such filing requirements
for the past 90 days. Yes X No
--- ---
The aggregate market value of the Common Stock held by non-affiliates of the
registrant, based on the closing sales price of the Common Stock on the New York
Stock Exchange on July 31, 1997, was $ 159,337,591. For purposes of this
computation, all officers, directors, and 5% beneficial owners of the registrant
are deemed to be affiliates. Such determination should not be deemed an
admission that such directors, officers, or 5% benficial owners are, in fact,
affiliates of the registrant.
Number of shares of Common Stock, $.01 Par Value, outstanding at July 31, 1997,
was 12,798,323.
================================================================================
<PAGE>
TABLE OF CONTENTS - SECOND QUARTER 1997 FORM 10-Q REPORT
Page
Numbers
-------
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements 3
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 10
PART II - OTHER INFORMATION
Item 1. Legal Proceedings 13
Item 2. Change in Securities 13
Item 3. Defaults Upon Senior Securities 13
Item 4. Submission of Matters to a Vote of Security Holders 13
Item 5. Other Information 14
Item 6. Exhibits and Reports on Form 8-K 14
Signatures 15
2
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
DELTIC TIMBER CORPORATION
Consolidated Balance Sheets
-------------------------------
(Thousands of dollars)
<TABLE>
<CAPTION>
June 30, Dec. 31,
1997 1996
-------- --------
(unaudited)
<S> <C> <C>
Assets
Current assets
Cash and cash equivalents $ 2,572 16,635
U. S. government securities 1,222 1,527
Accounts receivable, less allowance for doubtful accounts 6,060 5,718
Inventories 6,224 5,436
Prepaid expenses and other current assets 5,807 2,386
-------- -------
Total current assets 21,885 31,702
Investment in real estate held for development and sale 18,474 19,558
Investment in Del-Tin Fiber, L.L.C. 11,750 6,811
Timber and timberlands - net 103,183 90,320
Property, plant, and equipment - net 33,563 28,902
Deferred charges and other assets 3,513 2,785
-------- -------
Total assets $192,368 180,078
======== =======
Liabilities and Stockholders' Equity
Current liabilities
Current maturities of long-term debt $ 1,739 1,698
Notes payable 44 -
Trade accounts payable 4,283 2,031
Accrued taxes other than income taxes 1,263 780
Other accrued liabilities 1,087 942
Income taxes - 493
-------- -------
Total current liabilities 8,416 5,944
Long-term debt 4,002 2,685
Accrued postretirement benefits 2,336 2,187
Deferred credits and other liabilities 3,097 2,554
Stockholders' equity
Preferred stock - -
Common stock 128 128
Capital in excess of par value 68,372 68,372
Retained earnings 106,017 98,208
-------- -------
Total stockholders' equity 174,517 166,708
-------- -------
Total liabilities and stockholders' equity $192,368 180,078
======== =======
</TABLE>
See accompanying notes to consolidated financial statements.
3
<PAGE>
DELTIC TIMBER CORPORATION
Consolidated Statements of Income (Unaudited)
-----------------------------------------------
(Thousands of dollars, except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- --------------------
1997 1996 1997 1996
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net sales $26,581 19,493 50,945 38,811
------- ------ ------ ------
Costs and expenses
Cost of sales 16,912 13,604 30,567 26,388
Depreciation, amortization, and
cost of fee timber harvested 1,162 804 2,422 2,089
General and administrative
expenses 1,308 999 2,942 1,989
------- ------ ------ ------
Total costs and expenses 19,382 15,407 35,931 30,466
------- ------ ------ ------
Operating income 7,199 4,086 15,014 8,345
Interest income 138 691 489 1,369
Interest expense (87) (70) (168) (140)
Other income 65 40 96 407
------- ------ ------ ------
Income before income taxes 7,315 4,747 15,431 9,981
Income taxes (2,771) (1,897) (6,022) (3,980)
------- ------ ------ ------
Net income $ 4,544 2,850 9,409 6,001
======= ====== ====== ======
Net income per Common share* $.36 .22 .74 .47
======= ====== ====== ======
Dividends per Common share $.0625 N/A .125 N/A
======= ====== ====== ======
Average Common shares outstanding
(thousands)* 12,798 12,798 12,798 12,798
======= ====== ====== ======
</TABLE>
* 1996 amounts are presented on a pro forma basis. The distribution of the
Company's Common Stock did not occur until December 31, 1996.
See accompanying notes to consolidated financial statements.
4
<PAGE>
DELTIC TIMBER CORPORATION
Consolidated Statements of Cash Flows (Unaudited)
Six Months Ended June 30
-------------------------------------------------
(Thousands of dollars)
<TABLE>
<CAPTION>
1997 1996
-------- --------
<S> <C> <C>
Operating activities
Net income $ 9,409 6,001
Adjustments to reconcile above income to
net cash provided by operating activities
Depreciation, amortization, and cost of fee
timber harvested 2,422 2,089
Deferred income taxes 248 277
Gains from dispositions of assets (236) (69)
Real estate costs recovered upon sale 1,917 1,560
(Increase)/decrease in operating working
capital other than cash and cash
equivalents (1,766) (3,643)
Other (553) 555
-------- -------
Net cash provided by operating activities 11,441 6,770
-------- -------
Investing activities
Capital expenditures requiring cash (17,556) (4,355)
Net change in purchased stumpage inventory (3,633) (410)
Purchases of U. S. government securities (17,113) -
Maturities of U. S. government securities 17,418 -
Proceeds from dispositions of property, plant, and
equipment 328 97
Net (additions)/reductions to noncurrent receivable
from Murphy - (1,219)
Advances to Del-Tin Fiber, L.L.C. (4,667) -
Capital contribution from Murphy - 314
Other - net 56 (1,743)
-------- -------
Net cash required by investing activities (25,167) (7,316)
-------- -------
Financing activities
Proceeds from long-term borrowings 3,000 -
Repayments of long-term debt (1,738) (355)
Dividends paid (1,600) -
Other - net 1 -
-------- -------
Net cash required by financing activities (337) (355)
-------- -------
Net increase/(decrease) in cash and cash
equivalents (14,063) (901)
Cash and cash equivalents at January 1 16,635 1,431
-------- -------
Cash and cash equivalents at June 30 $ 2,572 530
======== =======
Supplemental disclosures
Cash income taxes paid, net of refunds $ 6,832 430
======== =======
Interest paid $ 290 76
======== =======
Additions to debt - owner financed
purchases of stumpage inventory $ 140 -
======== =======
</TABLE>
5
<PAGE>
DELTIC TIMBER CORPORATION
Consolidated Statements of Stockholders' Equity
-----------------------------------------------
(Thousands of dollars)
<TABLE>
<CAPTION>
June 30, Dec. 31,
1997 1996
---------- ---------
(unaudited)
<S> <C> <C>
Cumulative Preferred Stock - $.01 par, authorized
20,000,000 shares, none issued $ - -
Common Stock - $.01 par, authorized 50,000,000
shares, 12,798,323 shares issued 128 128
Capital in excess of par value 68,372 68,372
Retained earnings
Balance at January 1 98,208 103,860
Net income 9,409 13,161
Dividends declared (1,600) -
Noncash dividends to Murphy - (18,813)
-------- --------
Balance at end of period 106,017 98,208
-------- --------
Total stockholders' equity $174,517 166,708
======== ========
</TABLE>
6
<PAGE>
DELTIC TIMBER CORPORATION
Notes to Consolidated Financial Statements
June 30, 1997
-----------------------------------------------------------
NOTE A - INTERIM FINANCIAL STATEMENTS
The interim financial information included herein is unaudited; however, such
information reflects all adjustments which are, in the opinion of management,
necessary for a fair presentation of the Company's financial position, results
of operations, and cash flows for the interim periods. All such adjustments
are of a normal, recurring nature. The financial statements in Deltic's 1996
Annual Report on Form 10-K include a summary of significant accounting
policies of the Company and should be read in conjunction with this Form 10-Q.
Certain prior period amounts have been reclassified to conform with 1997
presentation format.
NOTE B - NET INCOME PER COMMON SHARE
This amount is computed by dividing net income for each period by the weighted
average number of Common shares outstanding during the period. For 1996, this
amount is presented on a pro forma basis and is calculated based on the number
of shares issued in connection with the spin-off from Murphy Oil Corporation.
The effects of assuming issuance of Common Stock for outstanding stock options
were immaterial and do not impact the amounts presented.
NOTE C - INVENTORIES
Inventories consisted of the following at the balance sheet dates:
<TABLE>
<CAPTION>
June 30, Dec. 31,
1997 1996
-------- --------
<S> <C> <C>
(Thousands of dollars)
Logs $2,729 1,366
Finished products 3,287 3,912
Materials and supplies 208 158
------ -----
$6,224 5,436
====== =====
</TABLE>
7
<PAGE>
DELTIC TIMBER CORPORATION
Notes to Consolidated Financial Statements
June 30, 1997
-----------------------------------------------------------
NOTE D - TIMBER AND TIMBERLANDS
Timber and timberlands consisted of the following at the balance sheet dates:
<TABLE>
<CAPTION>
June 30, Dec. 31,
1997 1996
-------- --------
<S> <C> <C>
(Thousands of dollars)
Purchased stumpage inventory $ 11,005 7,235
Timberlands 37,966 37,401
Fee timber 81,295 71,919
Logging facilities 1,590 1,588
-------- --------
131,856 118,143
Less accumulated costs of fee timber harvested
and facilities depreciation (28,673) (27,823)
-------- --------
$103,183 90,320
======== ========
</TABLE>
NOTE E - PROPERTY, PLANT, AND EQUIPMENT
Property, plant, and equipment consisted of the following at the balance sheet
dates:
<TABLE>
<CAPTION>
June 30, Dec. 31,
1997 1996
-------- --------
<S> <C> <C>
(Thousands of dollars)
Land and land improvements $ 7,330 7,272
Buildings and structures 7,090 6,836
Machinery and equipment 51,819 45,782
-------- -------
66,239 59,890
Less accumulated depreciation (32,676) (30,988)
-------- -------
$ 33,563 28,902
======== =======
</TABLE>
8
<PAGE>
DELTIC TIMBER CORPORATION
Notes to Consolidated Financial Statements
June 30, 1997
--------------------------------------------------------------
NOTE F - BUSINESS SEGMENTS (UNAUDITED)
Information about the Company's business segments is summarized in the
following tables.
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
1997 1996 1997 1996
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Thousands of dollars)
Net sales
Forest Products $23,211 17,357 43,893 35,167
Real Estate 3,127 1,734 5,706 3,045
Agriculture 243 402 1,346 599
------- ------ ------ ------
$26,581 19,493 50,945 38,811
======= ====== ====== ======
Income before income taxes
Forest Products $ 7,595 4,146 15,088 8,939
Real Estate 769 489 2,054 864
Agriculture 15 36 513 5
Corporate (1,180) (585) (2,641 (1,463)
------- ------ ------ ------
Operating income 7,199 4,086 15,014 8,345
Interest income 138 691 489 1,369
Interest expense (87) (70) (168 (140)
Other income 65 40 96 407
------- ------ ------ ------
$ 7,315 4,747 15,431 9,981
======= ====== ====== ======
Depreciation, amortization, and
cost of fee timber harvested
Forest Products $ 937 852 2,007 1,915
Real Estate 95 5 157 10
Agriculture 120 131 239 263
Corporate 10 (184) 19 (99)
------- ------ ------ ------
$ 1,162 804 2,422 2,089
======= ====== ====== ======
Capital expenditures
Forest Products $11,050 362 15,199 647
Real Estate 1,136 1,957 1,705 3,312
Agriculture 294 32 399 145
Corporate 166 85 253 251
------- ------ ------ ------
$12,646 2,436 17,556 4,355
======= ====== ====== ======
</TABLE>
9
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 1997 COMPARED WITH THREE MONTHS ENDED JUNE 30, 1996
Net income for the second quarter of 1997 was $4.5 million, $.36 a share,
an increase of 59 percent when compared to the second quarter of 1996 net income
of $2.8 million, ($.22 a share on a pro forma basis). Net cash provided by
operating activities was $2.8 million compared to $3.5 million in the second
quarter of 1996.
In the current quarter, operating income increased $3.2 million. The
Forest Products segment increased $3.5 million due primarily to a 58-percent
increase in pine sawtimber harvest levels, a 16-percent increase in the average
price for pine sawtimber sold, a 25-percent increase in average finished lumber
sales price, and a 16-percent increase in finished lumber sales volume. Real
Estate operations were up $.3 million as a result of an increase in the number
of residential lots sold and an 18-percent rise in the average sales price.
Agriculture segment results were virtually the same for both periods. The cost
of corporate functions increased $.6 million from a year ago.
Forest Products segment generated net sales of $23.2 million in the current
quarter compared to $17.4 million a year ago. Sales of pine sawtimber increased
$2.3 million as a result of a $56 per thousand board feet Doyle scale ("MBF-DS")
increase in average sales price to $404 per MBF-DS with a 4.5 million board feet
increase in pine sawtimber harvest volume to 12.3 million board feet. Finished
lumber sales increased $3 million due to an $84 per thousand board feet rise in
sales price to $418 and a 16-percent increase in sales volume to 41 million
board feet. Operating income was $7.6 million for the second quarter of 1997
compared to $4.1 million in the second quarter of 1996, an 83-percent increase,
primarily the result of increased sales of pine sawtimber and finished lumber,
partially offset by higher cost of production, including log cost, for sawmill
operations.
Real Estate operations recorded net sales of $3.1 million in the second
quarter of 1997 compared to $1.7 million in the second quarter of 1996.
Residential lot sales at the Company's Chenal Valley development increased by
two to 29 lots and the average sales price increased from $60,000 to $71,000.
The sale of 9.5 acres of undeveloped real estate acreage generated a $.2 million
gain in the current quarter. No commercial development acreage was sold in
either quarter. The acquisition on May 1, 1997 of Chenal Country Club, Inc., the
entity which operates the Club amenity around which the Chenal Valley
development is centered, resulted in net sales of $.7 million in the current
quarter. The acquisition was accomplished by exchanging an interest-bearing
receivable from the club membership which was previously held by Deltic for an
investment in the newly formed incorporated entity. The cost of the clubhouse
and golf course facilities acquired will be accounted for as an additional
amenity for the Chenal Valley development. Real Estate segment operating income
was $.8 million for the second quarter of 1997 compared to $.5 million a year
ago, due primarily to the same factors impacting net sales.
Agriculture segment net sales totaled $.2 million in the current quarter
compared to $.4 million a year ago with break-even results in both periods due
to the seasonality of the Company's farming operations. The majority of crops
grown are harvested in the late-summer and fall seasons.
10
<PAGE>
Corporate operating expense was $1.2 million in the second quarter of 1997
compared to $.6 million a year ago due primarily to increased general and
administrative expenses incurred as an independent, public company.
Interest income decreased $.6 million when compared to the second quarter
of 1996, due mainly to settlement of the interest-bearing receivable from Murphy
Oil Corporation, Deltic's parent prior to the spin-off, and the exchange of the
interest-bearing receivable from the membership of Chenal Country Club in the
acquisition of Chenal Country Club, Inc. as previously discussed. Income tax
expense increased $.9 million for the current quarter from $1.9 million a year
ago due to higher pretax earnings.
SIX MONTHS ENDED JUNE 30, 1997 COMPARED WITH SIX MONTHS ENDED JUNE 30, 1996
For the first six months of 1997, net income totaled $9.4 million, $.74 a
share, compared to net income for the six months ended June 30, 1996 of $6
million ($.47 a share on a pro forma basis). The increase in year-to-date net
income was primarily due to higher operating income from the Forest Products,
Real Estate, and Agriculture operations, partially offset by increased corporate
operating expenses.
Operating income for the first half of 1997 was $15 million, up $6.7
million from 1996. Forest Product operations increased $6.2 million to 15.1
million as the result of a $60/MBF-DS increase in average pine sawtimber price
and sales of an additional 7.4 million board feet of finished lumber over 1996
sales volume at an $84 per thousand board feet higher average lumber price. The
Real Estate segment increased to $2.1 million from $.9 million due primarily to
the sale of a 13-acre commercial tract at $100,000 per acre during the first six
months of 1997. Agriculture operations increased $.5 million as the result of
the first half of 1997 benefiting from the timing of product sales. Corporate
operating expense increased $1.2 million.
Forest Products segment generated net sales of $43.9 million during the six
months ended June 30, 1997, compared to $35.2 million during 1996. Pine
sawtimber sales increased $3.2 million due primarily to an 18-percent increase
in sales volume and a $60/MBF-DS increase in average pine sawtimber sales price
to $406/MBF-DS. Sales of finished lumber increased $5.9 million as the result
of an $84 per thousand board feet rise in average sales price and an increase in
sales volume of ten percent to 77.8 million board feet. Operating income was
$15.1 million for the first half of 1997 compared to $8.9 million in 1996, an
increase of 69 percent, due primarily to increased pine sawtimber and finished
lumber sales.
The Real Estate segment generated net sales of $5.7 million during the
first half of 1997, an increase of 87 percent when compared to $3 million during
1996. Residential lot sales totaled 47 lots compared to 54 in 1996, but the
average sales price of $68,000 was up $15,000 per lot. The first six months of
1997 also benefited from the sale of a 13-acre commercial tract at $100,000 per
acre. Net sales from Chenal Country Club operations of $.7 million and a $.2
million gain from the sale of 9.5 acres of undeveloped real estate acreage were
recorded during the first half of 1997. Operating income for Real Estate
operations of $2.1 million in 1997 increased $1.2 million from the first six
months of 1996, primarily the result of the $1.3 million commercial sale in
1997.
Agriculture operations recorded net sales of $1.3 million in the first six
months of 1997 compared to
11
<PAGE>
$.6 million a year ago resulting in operating income of $.5 million in 1997
compared to break-even results for the first half of 1996 due primarily to the
previously discussed seasonality of Deltic's farming operations. The current
year benefited from the timing of product sales.
Corporate operating expense of $2.7 million during 1997 increased $1.2
million from the first six months of 1996 due to higher general and
administrative expenses.
Interest income was $.9 million lower than the first half of 1996 as the
result of settlement of interest-bearing receivables from Murphy Oil Corporation
and the membership of Chenal Country Club. Income tax expense increased $2
million to $6 million for the first six months of 1997 due to higher pretax
income.
FINANCIAL CONDITION
For the first six months of 1997, net cash provided by operating activities
totaled $11.4 million compared to $6.8 million during the same period in 1996.
Changes in operating working capital, other than cash and cash equivalents,
required cash of $1.8 million for the first half of 1997 and $3.6 million for
the six months ended June 30, 1996.
Capital expenditures required cash of $17.6 million in the current year-to-
date period and $4.4 million a year ago. The increase was primarily the result
of the $9.9 million spent in the Company's planned timberland acquisition
program and the $4.8 million utilized to upgrade and expand sawmill operations.
Total capital expenditures are summarized by segment in the following table.
<TABLE>
<CAPTION>
------------------------------------------
Six Months
Ended June 30,
------------------------------------------
(Thousands of dollars) 1997 1996
------------------------------------------
<S> <C> <C>
Forest Products $15,199 647
Real Estate 1,705 3,312
Agriculture 399 145
Corporate 253 251
------------------------------------------
$17,556 4,355
==========================================
</TABLE>
The net change in purchased stumpage inventory to be utilized in the
Company's sawmill operations required cash of $3.6 million in the first six
months of 1997 and $.4 million in the first half of 1996. During the 1996
period, $1.2 million was advanced to Murphy Oil Corporation. The Company made
advances to Del-Tin Fiber, L.L.C. of $4.7 million and paid dividends of $1.6
million during the first six months of 1997. Borrowings under Deltic's line of
credit provided $3 million, while repayments of long-term debt utilized $1.7
million. These net uses of funds were the primary factors in the $12.3 million
reduction in working capital from $25.8 million at December 31,1996.
12
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
From time to time, the Company is involved in litigation incidental to
its business. Currently, there are no material legal proceedings.
ITEM 2. CHANGES IN SECURITIES
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The first annual meeting of the stockholders of Deltic Timber
Corporation ("Deltic" or "the Company") was held on May 21, 1997. Pursuant to
the provisions of Deltic's Amended and Restated Certificate of Incorporation,
its Board of Directors consist of three classes. Directors hold office for
staggered terms of three years. Set forth below is a listing of the directors
elected at the May 21, 1997 annual meeting, the results of Stockholders' vote at
the annual meeting and the names of the Company's directors whose term of office
continued after the meeting.
Director Votes For Votes Withheld
-------------------------- --------------------- --------------
Robert C. Nolan 11,794,643 146,545
Ron L. Pearce 11,794,643 146,545
Alex R. Lieblong 11,792,814 148,374
Eric M. Heiner (Term expires in 1998)
William L. Rosoff (Term expires in 1998)
John C. Shealy (Term expires in 1998)
O.H. Darling, Jr. (Term expires in 1999)
Rev. Christoph Keller, III (Term expires in 1999)
R. Madison Murphy (Term expires in 1999)
In addition to the election of three Class I directors at the May 21,
1997 annual meeting, the earlier appointment of KPMG Peat Marwick LLP by the
Board of Directors as the Company's independent auditors for 1997 was approved
with 11,926,403 shares voted in favor, 3,951 shares voted in opposition, and
10,834 shares non voted.
13
<PAGE>
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
None.
14
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
DELTIC TIMBER CORPORATION
By: /s/ RON L. PEARCE Date: August 12, 1997
---------------------------------- -----------------------------------
Ron L. Pearce, President
(Principal Executive Officer)
/s/ CLEFTON D. VAUGHAN Date: August 12, 1997
- - ------------------------------------- -----------------------------------
Clefton D. Vaughan, Vice President
Finance and Administration
(Principal Financial Officer)
/s/ EMILY R. EVERS Date: August 12, 1997
- - ------------------------------------- -----------------------------------
Emily R. Evers, Controller
(Principal Accounting Officer)
15
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 6-MOS 6-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1996
<PERIOD-START> JAN-01-1997 JAN-01-1996
<PERIOD-END> JUN-30-1997 JUN-30-1996
<CASH> 2,572 16,635
<SECURITIES> 1,222 1,527
<RECEIVABLES> 6,219 5,872
<ALLOWANCES> 159 154
<INVENTORY> 6,224 5,436
<CURRENT-ASSETS> 21,885 31,702
<PP&E> 66,239 59,890
<DEPRECIATION> 32,676 30,988
<TOTAL-ASSETS> 192,368 180,078
<CURRENT-LIABILITIES> 8,416 5,944
<BONDS> 0 0
0 0
0 0
<COMMON> 128 128
<OTHER-SE> 174,389 166,580
<TOTAL-LIABILITY-AND-EQUITY> 192,368 180,078
<SALES> 50,945 38,811
<TOTAL-REVENUES> 51,530 40,587
<CGS> 30,567 26,388
<TOTAL-COSTS> 32,989 28,477
<OTHER-EXPENSES> 2,942 1,989
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 168 140
<INCOME-PRETAX> 15,431 9,981
<INCOME-TAX> 6,022 3,980
<INCOME-CONTINUING> 9,409 6,001
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 9,409 6,001
<EPS-PRIMARY> .74 .47
<EPS-DILUTED> .74 .47
</TABLE>
