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 quarter ended October 2, 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 Number 0-22053
GENERAL BEARING CORPORATION
---------------------------
(Exact name of registrant as specified in its charter)
Delaware 13-2796245
-------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
44 High Street, West Nyack, New York 10994
------------------------------------ -----
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (914) 358-6000
Securities registered pursuant to Section12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act:
Common Stock $.01 par value per share
-------------------------------------
(Title of class)
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.
|X| Yes |_| No
At November 15, 1999, the Registrant had issued and outstanding 3,924,950
shares of common stock, $.01 par value per share.
<PAGE>
CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION
FOR THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements, which are statements other than those
of historical fact, including, without limitation, ones identified by the use of
the words "anticipates," "estimates," "expects," "intends," "plans," "predicts,"
and similar expressions. In this Quarterly Report such statements may relate,
among other things, to the recoverability of deferred taxes, likely industry
trends, the continued availability of credit lines, the suitability of
facilities, access to suppliers and implementation of joint ventures and
marketing programs. Such forward looking statements involve important risks and
uncertainties that could cause actual results to differ materially from those
expected by the Company, and such statements should be read along with the
cautionary statements accompanying them and mindful of the following additional
risks and uncertainties possibly affect the Company: the possibility of a
general economic downturn, which is likely to have an important impact on
historically cyclical industries such as manufacturing; significant price,
quality, quantity or marketing efforts from domestic or overseas competitors;
the loss of, or substantial reduction in orders from, a major customer; the loss
of, or failure to attain additional quality certifications; changes in U.S. or
foreign government regulations and policies, including the imposition of
antidumping orders on the Company or any of its suppliers; a significant
judgment or order against the Company in a legal or administrative proceeding;
and potential delays in implementing planned sales and marketing expansion
efforts and the failure of their effectiveness upon implementation.
<PAGE>
GENERAL BEARING CORPORATION
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED OCTOBER 2, 1999
TABLE OF CONTENTS
PART I
PAGE NO.
--------
Item 1. Financial Statement . . . . . . . . . . . . . . . . 2 - 6
Item 2. Management's Discussion and Analysis of Results of
Operations and Financial Condition . . . . . . . . . 7 - 10
PART II
Item 1. Legal Proceedings . . . . . . . . . . . . . . . . . . 11
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . 11
Signature . . . . . . . . . . . . . . . . . . . .. . . . . . . 12
1
<PAGE>
FINANCIAL STATEMENTS OF
GENERAL BEARING CORPORATION AND SUBSIDIARIES
Item 1. CONSOLIDATED BALANCE SHEETS
(In Thousands - Except for Shares and Per Share Data)
<TABLE>
<CAPTION>
Oct. 2, Jan. 2,
1999 1999
-------- --------
ASSETS (Unaudited)
<S> <C> <C>
Current:
Cash $ 11 $ 29
Accounts receivable - trade, less allowance for
doubtful accounts of $187 and $200 6,081 5,772
Inventories 18,624 16,423
Prepaid expense and other current assets 756 358
Advances to affiliates 1,261 940
Advances to parent 308 --
Deferred tax asset 426 437
-------- --------
Total current assets 27,467 23,959
Fixed assets, net 3,384 3,277
Investments in affiliates 1,928 1,695
Advances to affiliate 437 423
Deferred tax asset -- 956
Other assets 71 28
-------- --------
Total Assets $ 33,287 $ 30,338
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current:
Note payable - bank $ 9,096 $ 8,126
Accounts payable:
Trade 1,009 1,271
Affiliate -- 3
Parent -- 94
Accrued expenses and other current liabilities 1,273 1,128
Current maturities of long-term debt 63 286
-------- --------
Total current liabilities 11,441 10,908
Long-term debt, less current maturities
Bank -- 557
Other 440 440
Affiliate 986 954
-------- --------
Total long-term debt 1,426 1,951
Deferred taxes 187 --
Commitments and contingencies
Stockholders' equity:
Preferred stock par value $.01 per share - shares authorized 1,000,000
none issued and outstanding -- --
Common stock par value $.01 per share - shares authorized 19,000,000
issued and outstanding 3,924,950 and 3,918,950 shares 39 39
Additional paid-in capital 28,800 28,758
Deficit (8,606) (11,318)
-------- --------
Total stockholders' equity 20,233 17,479
-------- --------
Total liabilities and stockholders' equity $ 33,287 $ 30,338
======== ========
</TABLE>
See accompanying notes to condensed consolidated financial statements
2
<PAGE>
FINANCIAL STATEMENTS OF
GENERAL BEARING CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(In Thousands - Except for Shares and Per Share Data)
<TABLE>
<CAPTION>
Thirty-nine weeks ended Thirteen weeks ended
----------------------- --------------------
Oct. 2, Sept. 26, Oct. 2, Sept. 26,
1999 1998 1999 1998
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Sales $ 39,845 $ 32,730 $ 11,687 $ 11,382
Cost of sales 27,565 22,308 8,103 7,818
----------- ----------- ----------- -----------
Gross Profit 12,280 10,422 3,584 3,564
Selling, general and administrative expenses 7,532 6,822 2,451 2,171
----------- ----------- ----------- -----------
Operating income 4,748 3,600 1,133 1,393
Net interest expense 533 563 123 209
Equity in income of affiliates (83) -- (67) --
Gain on sale of equipment -- (350) -- (55)
----------- ----------- ----------- -----------
Income before income taxes 4,298 3,387 1,077 1,239
Income tax 1,586 1,323 379 471
----------- ----------- ----------- -----------
Net Income $ 2,712 $ 2,064 $ 698 $ 768
=========== =========== =========== ===========
Net income per common share:
Basic $ 0.69 $ 0.53 $ 0.18 $ 0.20
----------- ----------- ----------- -----------
Diluted $ 0.69 $ 0.52 $ 0.18 $ 0.20
----------- ----------- ----------- -----------
Weighted average number of common shares:
Basic 3,921,620 3,913,376 3,924,225 3,918,950
----------- ----------- ----------- -----------
Diluted 3,928,111 3,992,067 3,929,901 3,926,382
----------- ----------- ----------- -----------
</TABLE>
See accompanying notes to condensed consolidated financial statements
3
<PAGE>
FINANCIAL STATEMENTS OF
GENERAL BEARING CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In Thousands)
<TABLE>
<CAPTION>
Thirty-nine weeks ended
-----------------------
Oct. 2, Sept. 26,
1999 1998
------- -------
<S> <C> <C>
Cash flows from operating activities:
Net Income $ 2,712 $ 2,064
Add (deduct) noncash items charged (credited) to income:
Deferred income taxes 1,154 1,180
Depreciation and amortization 374 424
Equity in income of affiliates (83) --
Loss / (gain) on disposal of fixed assets 4 (350)
Add (deduct) changes in operating assets and liabilities:
Accounts receivable (308) (1,136)
Inventories (2,200) (4,043)
Prepaid expenses and other assets (446) 24
Due to (from) affiliates (307) 211
Accounts payable and accrued expenses (117) (369)
------- -------
Net cash provided by (used in) operating activities 783 (1,995)
------- -------
Cash flows from investing activities:
Investments in affiliates, net (150) (936)
Fixed asset purchases (481) (976)
Proceeds from sale of fixed assets -- 694
------- -------
Net cash used in investing activities (631) (1,218)
------- -------
Cash flows from financing activities:
Proceeds from sale of common shares, net 42 133
Repayment of long-term debt - bank (557) (167)
Repayment of current maturity - bank (223) --
Increase in note payable - bank 970 3,582
Increase in other long-term debt -- 504
Repayment of long-term debt and other balances - parent (402) (845)
------- -------
Net cash provided by (used in) financing activities (170) 3,207
------- -------
Net decrease in cash (18) (6)
Cash, beginning of period 29 118
------- -------
Cash, end of period $ 11 $ 112
======= =======
Cash paid during 39 weeks for:
Interest 542 599
Income taxes 628 56
</TABLE>
See accompanying notes to condensed consolidated financial statements
4
<PAGE>
GENERAL BEARING CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of The accompanying unaudited condensed consolidated
Presentation financial statements have been prepared in accordance with
generally accepted accounting principles for interim financial
information and with the instruction to Form 10-Q and
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 solely
of normal recurring accruals) considered necessary for a fair
presentation have been included. Operating results for the
thirty-nine weeks ended October 2, 1999 are not necessarily
indicative of the results that may be expected for the year
ending January 1, 2000. For further information, refer to the
consolidated financial statements and footnotes thereto
included in the Company's annual report on Form 10-K for the
year ended January 2, 1999.
2. Earnings The calculation of diluted earnings per share includes
per Share the effect of outstanding options and warrants to the extent
they are dilutive.
3. Long Term Due to favorable interest rates, the Company
Debt consolidated the remaining term loan balance ($669,000) into
the existing revolving credit facility during June 1999.
4. Litigation There has been no material change in litigation since
the events reported in the Company's 10-Q for the fiscal
quarter ended July 3, 1999.
5. Segment During 1998, the Company, adopted Statement of Financial
Information Accounting Standards No. 131 ("SFAS 131"), Disclosures about
Segments of an Enterprise and Related Information. SFAS 131
supersedes SFAS 14, Financial Reporting for Segments of a
Business Enterprise, replacing the "industry segment" approach
with the "management" approach. The management approach
designates the internal reporting that is used by management
for making operating decisions and assessing performance as
the source of the Company's reportable segments.
The Company operates in two divisions: the OEM Division,
which supplies Original Equipment Manufacturers (OEM's), and
the Distribution Division, which serves distributors that
supply the repair and maintenance aftermarket and small OEM's.
The two divisions supply principally in the United States.
The accounting policies of the segments are the same as
those described in the summary of significant accounting
policies outlined in the Company's 10-K for the fiscal year
ended January 2, 1999. The Company evaluates segment
performance based on operating income.
The following table presents information about the
Company's business segments.
5
<PAGE>
GENERAL BEARING CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands)
<TABLE>
<CAPTION>
Year to Date October 2, 1999
OEM DISTRIBUTOR OTHER TOTAL
-------------------------------------------
<S> <C> <C> <C> <C>
Net sales from external customers $29,419 $10,426 $ -- $39,845
Gross profit 6,721 5,559 -- 12,280
Operating income 2,745 2,003 -- 4,748
Depreciation / amortization 299 75 -- 374
Capital expenditures 301 31 149 481
Total assets 19,980 7,137 6,170 33,287
Year to Date September 26, 1998
OEM DISTRIBUTOR OTHER TOTAL
-------------------------------------------
Net sales from external customers $21,772 $10,958 $ -- $32,730
Gross profit 4,847 5,575 -- 10,422
Operating income 1,401 2,199 -- 3,600
Depreciation / amortization 285 139 -- 424
Capital expenditures 763 35 178 976
Total assets 16,732 7,735 7,248 31,715
Quarter Ended October 2, 1999
OEM DISTRIBUTOR OTHER TOTAL
-------------------------------------------
Net sales from external customers $ 8,446 $ 3,241 $ -- $11,687
Gross profit 1,888 1,696 -- 3,584
Operating income 609 524 -- 1,133
Depreciation / amortization 106 27 -- 133
Capital expenditures 108 20 47 175
Total assets 19,980 7,137 6,170 33,287
Quarter Ended September 26, 1998
OEM DISTRIBUTOR OTHER TOTAL
-------------------------------------------
Net sales from external customers $ 7,877 $ 3,505 $ -- $11,382
Gross profit 1,810 1,754 -- 3,564
Operating income 682 711 -- 1,393
Depreciation / amortization 119 45 -- 164
Capital expenditures 28 22 62 112
Total assets 16,732 7,735 7,248 31,715
</TABLE>
Depreciation expense was allocated based on material, labor, and overhead.
6
<PAGE>
Item 2. Management's Discussion and Analysis of Results of Operations and
Financial Condition
Results of Operations
Sales. Sales for the third fiscal quarter of 1999 were $11,687,000, an
increase of $305,000 or 3% compared to the same period in 1998. OEM sales
represented 72% of total sales for the third quarter of 1999 compared to 69% of
total sales for 1998. Third quarter sales in the OEM Division increased 7% over
1998 while Distribution Division sales decreased 8%. On a year-to-date basis,
sales were $39,845,000, an increase of $7,115,000 or 22% compared to the same
period in 1998. OEM sales represented 74% and 67% of total year-to-date sales
for 1999 and 1998, respectively. OEM sales are ahead of the prior period by 35%
primarily as a result of new business won during 1998 and 1999. The largest
dollar increase was in tapered roller bearings, where the Company is a primary
supplier to the heavy duty truck trailer market. Also significant are increases
in sales of ball bearings and new sales of a drive line component to the
automotive industry. Sales in the Distribution Division are 5% lower in 1999 as
softness in the industrial aftermarket offset higher pricing.
Gross Profit. Gross profit was $3,584,000 or 30.7% of sales in the third
fiscal quarter of 1999 compared to $3,564,000 or 31.3% of sales in the third
fiscal quarter in 1998. Gross profit percentage of sales (GP%) was adversely
impacted by product mix as a result of the growth in sales to original equipment
manufacturers combined with reduced higher margin sales to the industrial
aftermarket. GP% for the OEM Division was 22.4% in the third fiscal quarter of
1999 compared to 23.0% in 1998. This is primarily due to product mix and
introductory pricing necessary to increase market share. GP% for the
Distribution Division was 52.3% in the third fiscal quarter of 1999 compared to
50.0% in 1998 mainly due to product mix. On a year-to-date basis, gross profit
was $12,280,000 or 30.8% of sales in 1999 compared to $10,422,000 or 31.8% of
sales in 1998. GP% for the OEM Division was 22.8% compared to 22.3% for 1998.
The increase is primarily due to the higher sales volume, partially offset by
the factors discussed above. GP% for the Distribution Division was 53.3%
compared to 50.9% for 1998 due to higher pricing and product mix.
Selling, General and Administrative Expenses. Selling, general and
administrative expenses (S,G&A) as a percentage of sales were 21.0% in the third
fiscal quarter of 1999 compared to 19.1% in the third fiscal quarter in 1998.
S,G&A increased by $280,000. This is primarily attributable to increases in
salaries ($120,000) to help support the Company's growth, as well as increases
in outside warehousing ($53,000), commissions ($50,000), professional fees
($31,000), and freight to customers ($29,000). On a year-to-date basis, selling,
general and administrative expenses were 18.9% in 1999 compared to 20.8% in
1998. This reduction reflects the effect of the Company's increased sales
volume. Year-to-date, S,G&A increased $710,000 compared to 1998. The increase is
mainly due to the aforementioned increase in salaries ($408,000), as well as
increases in promotion ($52,000) and various variable costs such as outside
warehousing ($136,000), commissions ($119,000), and freight to customers
($85,000), partially offset by lower professional fees ($109,000) and travel and
entertainment ($102,000).
7
<PAGE>
Operating Income. Operating income of $1,133,000 for the third fiscal
quarter of 1999 represents a 19% decrease compared to the same period in 1998.
The decrease in operating income in the OEM Division of 11% from 1998 to
$609,000 was due primarily to reduced gross profit caused by product mix and
introductory pricing. Operating income in the Distribution Division decreased
26% from 1998 to $524,000 mainly due to lower sales. On a year-to-date basis,
operating income of $4,748,000 in 1999 represents a 32% increase compared to
1998. The OEM Division year-to-date increase of 96% over 1998 to $2,745,000 is
mainly due to increased sales volume partially offset by increased S, G & A
needed to support its growth. The Distribution Division year-to-date operating
income is 9% lower than 1998 as lower sales volume was only partially offset by
higher pricing.
Interest Expense, net. Net interest expense was $123,000 for the third
fiscal quarter of 1999 compared to $209,000 during the same period in 1998. As a
percentage of sales, net interest expense was 1.1% and 1.8% for the third
quarter of 1999 and 1998, respectively. This improvement is mainly attributable
to an interest rate adjustment that was retroactive to June 1998. On a
year-to-date basis, net interest expense was $533,000 in 1999 compared to
$563,000 in 1998. This decrease is primarily due to the aforementioned refund
partially offset by higher debt needed to fund inventory and receivables growth
created by normal business expansion.
Income Tax. For the third fiscal quarter of 1999, the Company had an
effective tax rate of 35.2% compared to 38.0% for 1998. On a year-to-date basis,
the Company had an effective tax rate of 36.9% compared to 39.1% in 1998.
Effective tax rates are based on estimated year end effective rates.
Net Income. As a result of the factors discussed above, net income for the
third fiscal quarter of 1999 decreased by 9% to $698,000 or $.18 per basic and
diluted share from $768,000 or $.20 per basic and diluted share in 1998. On a
year-to-date basis, net income increased by 31% to $2,712,000 or $.69 per basic
and diluted share from $2,064,000 or $.53 and $.52 per basic and diluted share,
respectively, in 1998.
Financial Condition, Liquidity and Capital Resources
The Company's primary sources of capital have been net cash provided by
operating activities, a term loan, sale of common stock and financing from
affiliates. Working capital requirements also have been financed by a Revolving
Credit Facility. The primary demands on the Company's capital resources have
been the need to fund inventory and receivables growth created in normal
business expansion. At January 2, 1999 and October 2, 1999, the Company had
working capital of $13,051,000 and $16,026,000, respectively.
Cash provided by operating activities during the first nine months of 1999
was $783,000. Cash provided from net income and deferred income taxes was
partially offset by increased inventory and accounts receivable. The primary
reasons for the inventory increase are to support current and future increased
sales volume in tapered journal bearings, automotive ball bearings and truck
size tapered roller bearings.
8
<PAGE>
Cash used in investing activities during the first nine months of 1999
included $481,000 for capital expenditures. An additional $150,000 was invested
in Ningbo General Bearing Co., Ltd., one of our joint ventures.
Cash used in financing activities during the first nine months of 1999 was
$170,000. During June 1999, the Company repaid its term loan via a transfer to
the revolving credit facility due to favorable interest rates and borrowing
availability. Additionally, the Company has made a loan to its Parent.
At October 2, 1999, the Company had outstanding debt of $9,096,000 under
its Revolving Credit Facility and had further availability of approximately $3.0
million.
The Company believes that funds generated from continuing operations,
capital lease financing and borrowing under the existing and any future
Revolving Credit Facilities will be sufficient to finance the Company's
anticipated working capital and capital expenditure requirements for at least
the next 24 months.
Year 2000 Compliance
The "Year 2000" problem refers to and arises from deficient computer
programs and related products, such as embedded chips, which do not properly
recognize or process a year that begins with "20" instead of "19". If not
corrected, many computer applications could fail or create erroneous results.
The extent of the potential impact of the Year 2000 problem is not yet known,
and if not timely corrected, it could affect the global economy.
A. The Company's Readiness:
1. (i) Information Technology (IT) systems: The Company has conducted a
comprehensive review of its computer systems to identify those that could be
affected by the Year 2000 issue. The Company has made changes or installed
upgrades where necessary. The Company has conducted a successful system-wide
test of all software to ensure that our systems, operating properly in 1999,
will remain operational in 2000. (ii) Non IT systems: Non IT systems are those
which typically include "embedded" technology such as microcontrollers and
chips. The Company has evaluated the effect of the Year 2000 problem on non IT
systems and has found these systems compliant.
2. Third Parties: Due to the pervasive use of computers by the Company in
its dealings with suppliers, customers, financial institutions, and other third
parties, the Year 2000 problem could have a material impact on the Company if
not timely addressed by such third parties. To assess third party readiness, the
Company has surveyed its principal suppliers and financial institutions and
received responses which indicate that all such parties have adequately
addressed the problem. While the company has not surveyed its customers, it has
received surveys from its principal customers which indicate that they are also
addressing the problem.
B. Cost: The Company has not allocated anticipated year 2000 remediation costs
among the various systems which may be affected but believes that total
remediation costs will be immaterial.
9
<PAGE>
C. Risks: The Company believes that the greatest risk presented by the year 2000
problem is from third parties, such as suppliers, financial institutions,
utility providers, etc. who may not have adequately addressed the problem. A
failure of any such third party's computer or other applicable systems in
sufficient magnitude could materially and adversely affect the Company. The
Company is not presently able to quantify this risk but believes that it is
minimal based upon the surveys and letters it has received.
D. Contingency Plans: The Company has been documenting its Year 2000 contingency
plan and anticipates that the documentation will be finalized by December 15,
1999. This plan includes detailed manual procedures for every department should
the Year 2000 problem cause an interruption in computer services. Also, the
Company will issue a comprehensive set of year-end reports prior to January 1,
2000 to ensure that the necessary information is available to conduct business
in an uninterrupted fashion until any problems are resolved. The procedures will
include paper back up of the transactions executed during downtime, if any, to
enable the Company to transfer these transactions to the computer system when it
becomes available.
Inflation
The effect of inflation on the Company has not been significant during the
last two fiscal years.
Quantitative and Qualitative Disclosure about Market Risk
Interest Rate Risk
The Company's primary market risks are fluctuations in interest rates and
variability in interest rate spread relationships (i.e., prime to LIBOR spreads)
on its bank debt. The Company does not use derivative financial instruments.
The Company's management believes that fluctuations in interest rates in
the near term would not materially affect the Company's consolidated operating
results, financial position or cash flows as the Company has limited risks
related to interest rate fluctuations.
Foreign Currency Risk
The Company does not use foreign currency forward exchange contracts or
purchased currency options to hedge local currency cash flows or for trading
purposes. All sales arrangements with international customers are denominated in
U.S. dollars. Only a small fraction of the Company's purchases are denominated
in foreign currency. Due to this limited activity, the Company does not expect
any material loss with respect to foreign currency risk.
10
<PAGE>
PART II
Item 1. Legal Proceedings
There have been no material developments in any of the Company's legal
matters subsequent to the events reported in the Company's 10-Q filed August 17,
1999.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit 27. Financial Data Schedule
(b) The Registrant has not filed any reports on Form 8-K during the
quarter ended October 2, 1999.
11
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this Quarterly Report on Form 10-Q to be signed on
its behalf by the undersigned, thereunto duly authorized.
Date: November 16, 1999.
GENERAL BEARING CORPORATION
---------------------------
(Registrant)
/s/ David L. Gussack
-------------------------------
David L. Gussack
President
/s/ Barry A. Morris
-------------------------------
Barry A. Morris
Chief Financial Officer
12
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JAN-01-2000
<PERIOD-END> OCT-02-1999
<CASH> 11
<SECURITIES> 0
<RECEIVABLES> 6,268
<ALLOWANCES> 187
<INVENTORY> 18,624
<CURRENT-ASSETS> 27,467
<PP&E> 6,637
<DEPRECIATION> 3,253
<TOTAL-ASSETS> 33,287
<CURRENT-LIABILITIES> 11,441
<BONDS> 0
0
0
<COMMON> 39
<OTHER-SE> 20,194
<TOTAL-LIABILITY-AND-EQUITY> 33,287
<SALES> 39,845
<TOTAL-REVENUES> 39,845
<CGS> 27,565
<TOTAL-COSTS> 27,565
<OTHER-EXPENSES> 7,532
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 533
<INCOME-PRETAX> 4,298
<INCOME-TAX> 1,586
<INCOME-CONTINUING> 2,712
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,712
<EPS-BASIC> .69
<EPS-DILUTED> .69
</TABLE>
