FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 1OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended February 28, 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 1-7924
VALLEY RESOURCES, INC.
(Exact name of Registrant as specified in its charter)
Rhode Island 05-0384723
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1595 Mendon Road 02864
Cumberland, Rhode Island (Zip Code)
(Address of principal executive offices)
(401) 334-1188
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months, and (2) has been subject to such filing requirements
for the past 90 days.
Yes X . No ___.
Indicate the number of shares outstanding of each of the issuer's classes of
Common Stock, as of the latest practicable date.
Outstanding at
Class of Common Stock Feb. 28, 1999
$1 Par Value 4,985,129
<PAGE>
VALLEY RESOURCES, INC.
FORM 10-Q
FEBRUARY 28, 1999
Page of
Form 10-Q
PART I: FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Condensed Statements of Earnings--for
the three- and six-months ended February 28, 1999
and 1998........................................................ 3
Consolidated Condensed Balance Sheets--February 28,
1999 and August 31, 1998.................................... 4 & 5
Consolidated Condensed Statements of Cash Flows--for
the six-months ended February 28, 1999 and 1998................. 6
Notes to Consolidated Condensed Financial Statements............ 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations............................. 8
PART II: OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K............................... 11
<PAGE>
PART I: FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
VALLEY RESOURCES, INC. AND SUBSIDIARIES
Consolidated Condensed Statements of Earnings
(Unaudited)
<TABLE>
<CAPTION>
3 Months Ended 6 Months Ended
Feb. 28, Feb. 28, Feb. 28, Feb. 28,
1999 1998 1999 1998
-------- -------- -------- --------
(in thousands except share and per share numbers)
<S> <C> <C> <C> <C>
Operating Revenues:
Utility Gas Revenues $ 23,345 $ 24,830 $ 33,169 $ 34,913
Nonutility Revenues 5,856 5,598 11,302 11,339
---------- ---------- ---------- ----------
Total 29,201 30,428 44,471 46,252
---------- ---------- ---------- ----------
Operating Expenses:
Cost of Gas Sold 12,725 13,688 17,868 19,281
Cost of Sales - Nonutility 3,621 3,800 7,409 7,827
Operations 4,492 4,818 9,103 9,533
Maintenance 428 417 837 815
Depreciation and Amortization 852 825 1,708 1,651
Taxes - Other Than Federal Income 1,330 1,368 2,196 2,220
- Federal Income 1,775 1,593 1,326 1,068
---------- ---------- ---------- ----------
Total 25,223 26,509 40,447 42,395
---------- ---------- ---------- ----------
Operating Income 3,978 3,919 4,024 3,857
Other Income - Net of Tax 81 72 150 122
---------- ---------- ---------- ----------
Total Income 4,059 3,991 4,174 3,979
---------- ---------- ---------- ----------
Interest Charges:
Long-Term Debt 610 611 1,230 1,233
Other 157 149 288 276
---------- ---------- ---------- ----------
Total 767 760 1,518 1,509
---------- ---------- ---------- ----------
Net Income $ 3,292 $ 3,231 $ 2,656 $ 2,470
========== ========== ========== ==========
Average Number of Common
Shares Outstanding 4,976,890 4,970,959 4,980,682 4,955,018
Basic Earnings Per Average Common
Share Outstanding $0.66 $0.65 $0.53 $0.50
Dividends Declared on Common Stock $0.1875 $0.185 $0.375 $0.37
</TABLE>
The accompanying Notes are an integral part of these statements.
<PAGE>
VALLEY RESOURCES, INC. AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
<TABLE>
<CAPTION>
(Unaudited)
Feb. 28, Aug. 31,
1999 1998
-------- --------
(in thousands)
<S> <C> <C>
ASSETS
Utility Plant - Net $ 51,755 $ 51,310
-------- --------
Leased Property - Net 1,926 2,303
-------- --------
Nonutility Property-Net 4,147 4,106
-------- --------
Other Investments 1,659 1,637
-------- --------
Current Assets:
Cash 554 813
Accounts Receivable - Net 16,384 9,684
Deferred Fuel Costs -0- 485
Deferred Unbilled Gas Costs 1,695 438
Fuel and Other Inventories (Note 3) 4,752 5,819
Prepayments 806 1,353
Common Stock held for Dividend Reinvestment-amounting
to 7,899 and 10,116 shares respectively (Note 4) 101 121
-------- --------
Total 24,292 18,713
-------- --------
Deferred Debits:
Recoverable Postretirement Benefits 115 231
Recoverable Vacations Accrued 761 633
Unamortized Debt Discount and Expense 1,678 1,712
Prepaid Pensions 9,606 8,824
Recoverable Deferred FIT 5,997 6,109
Recoverable Transition Obligation 21 21
Other 3,250 2,882
-------- --------
21,428 20,412
-------- --------
Total $105,207 $ 98,481
======== ========
</TABLE>
The accompanying Notes are an integral part of these statements.
<PAGE>
VALLEY RESOURCES, INC. AND SUBSIDIARIES
Consolidated Condensed Balance Sheets (Cont'd)
<TABLE>
<CAPTION>
(Unaudited)
Feb. 28, Aug. 31,
1999 1998
----------- --------
(in thousands)
<S> <C> <C>
CAPITALIZATION & LIABILITIES
Capitalization:
Common Stock $ 4,993 $ 4,993
Paid In Capital 24,779 24,811
Retained Earnings 8,983 8,187
Less: Accounts Receivable from ESOP (2,683) (2,768)
-------- --------
Total Common Stock Equity 36,072 35,223
-------- --------
Long-Term Debt (Less Current Maturities):
8% First Mortgage Bonds, Series Due 2022 20,029 20,039
7.7% Debentures, Due 2027 7,000 7,000
Notes Payable 2,524 2,599
-------- --------
Total Long-Term Debt 29,553 29,638
-------- --------
Total Capitalization 65,625 64,861
-------- --------
Revolving Credit Arrangement 2,400 2,400
-------- --------
Obligation Under Capital Lease 1,149 1,528
-------- --------
Current Liabilities:
Current Maturities of Long-Term Debt 2,289 2,289
Obligation Under Capital Lease 777 775
Notes Payable 5,200 2,300
Accounts Payable 4,892 4,275
Security Deposits & Refund Obligations 974 977
Taxes Accrued 1,586 435
Deferred Fuel Costs 929 -0-
Accrued Interest 727 794
Other 891 741
-------- --------
Total 18,265 12,586
-------- --------
Commitment and Contingencies
Deferred Credits 4,516 4,513
-------- --------
Deferred Federal Income Taxes 13,252 12,593
-------- --------
$105,207 $ 98,481
========= ========
</TABLE>
The accompanying Notes are an integral part of these statements.
<PAGE>
VALLEY RESOURCES, INC. AND SUBSIDIARIES
Consolidated Condensed Statements of Cash Flows (Unaudited)
<TABLE>
<CAPTION>
For the 6 Months
Ended
Feb. 28, Feb. 28,
1999 1998
-------- --------
(in thousands)
<S> <C> <C>
Cash Flows from Operating Activities:
Net Income $ 2,656 $ 2,470
Adjustments to Reconcile Net Income to Net Cash used in
Operating Activities:
Depreciation and Amortization 1,708 1,651
Provision for Uncollectibles 624 1,081
Deferred Federal Income Taxes 659 578
Amortization of ITC (24) (24)
Change in Assets and Liabilities:
Accounts Receivable (7,324) (6,412)
Deferred Fuel Costs 1,414 (64)
Unbilled Gas Costs (1,257) (974)
Fuel and Other Inventories 1,067 1,555
Other Current Assets (215) (174)
Accounts Payable, Accrued Expenses and Current Liabilities 1,764 1,755
Other - Net (35) 485
------- -------
Net Cash Provided by Operating Activities 1,037 1,927
------- -------
Cash Flows from Investing Activities:
Utility Capital Expenditures (1,860) (2,016)
Nonutility Capital Expenditures (336) (641)
Other Investments (23) (17)
------- -------
Net Cash Used by Investing Activities (2,219) (2,674)
------- -------
Cash Flows from Financing Activities:
Dividends Paid (1,859) (1,850)
Capital Stock Transactions (33) 877
Retirement of Long-Term Debt (85) (134)
Increase in Notes Payable 2,900 2,000
------- -------
Net Cash Provided by Financing Activities 923 893
------- -------
Net (Decrease) Increase in Cash (259) 146
Cash - Beginning 813 820
------- -------
Cash - Ending $ 554 $ 966
======= =======
Supplemental Disclosures of Cash Flow Information
Cash Paid During the Period for:
Interest $ 1,585 $ 1,262
======= =======
Federal Income Taxes $ -0- $ -0-
======= =======
Capital Lease Obligations Incurred $ 11 $ 177
======= =======
</TABLE>
The accompanying Notes are an integral part of these statements.
<PAGE>
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
Note 1
- ------
In the opinion of the Corporation, the accompanying unaudited consolidated
condensed financial statements contain all adjustments (consisting of only
normal recurring accruals and matters discussed in "Management's Discussion and
Analysis of Financial Condition and Results of Operations") necessary to present
fairly the financial position at February 28, 1999, the results of operations
for the three- and six-months ended February 28, 1999 and 1998 and Statement of
Cash Flows for the six-months ended February 28, 1999 and 1998.
The results of operations for the three- and six-month periods ended
February 28, 1999 and 1998 are not necessarily indicative of the results to be
expected for the full year.
Note 2
- ------
The Corporation computes basic and diluted earnings per average common
share in accordance with SFAS 128, based on the weighted average number of
shares outstanding during the period.
<TABLE>
<CAPTION>
(Unaudited) (Unaudited)
3 Months Ended 6 Months Ended
February 28, February 28,
1999 1998 1999 1998
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net Income $3,292,123 $3,231,534 $2,655,508 $2,470,453
Weighted average shares outstanding 4,976,890 4,970,959 4,980,682 4,955,018
Basic and diluted earnings per share $0.66 $0.65 $0.53 $0.50
</TABLE>
Note 3
- ------
Inventories - Fuel and Other Inventories:
(in Thousands)
<TABLE>
<CAPTION>
(Unaudited)
February 28, August 31,
1999 1998
------------ ----------
<S> <C> <C>
Fuels (at average cost) $2,259 $3,543
Merchandise and Other (at average cost) 1,154 1,241
Merchandise (at LIFO) 1,339 1,035
------ ------
$4,752 $5,819
====== ======
</TABLE>
Note 4
- ------
Pursuant to the dividend reinvestment plan, stockholders can reinvest
dividends and make limited additional investments in shares of Common Stock.
Shares issued through dividend reinvestment can be acquired on the open market
or original issue.
<PAGE>
PART I - ITEM 2
Management's Discussion and Analysis of Financial
Condition and Results of Operations
Results of Operations
- ---------------------
For the three months ended February 28, 1999 compared to the three months ended
February 28, 1998
The consolidated net income of Valley Resources for the second quarter of
fiscal 1999, was $3,292,100 or $0.66 per share compared to net income of
$3,231,500 or $0.65 per share for the year earlier second quarter. Net income
from utility operations totaled $2,802,500 as compared to $2,959,700 in fiscal
1998's second quarter. Nonutility operations provided net income of $489,600 in
the second quarter of fiscal 1999 as compared to $271,800 in the prior year's
second quarter. The weather-related declines of the utility operations were
offset by nonutility earnings generated from the Corporation's weather
insurance.
Utility gas revenues and volumes for the second quarter of fiscal 1999 and
fiscal 1998 were as follows:
<TABLE>
<CAPTION>
Revenues Volumes (Mcf's)
-------- ---------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Base Firm Sales Service $21,777,500 $23,162,400 3,077,900 3,302,300
Base Firm Transportation 178,200 84,400 151,800 83,300
----------- ----------- --------- ---------
Firm Gas Sales 21,955,700 23,246,800 3,229,700 3,385,600
Interruptible Service 338,800 482,100 1,125,800 1,281,400
PGPA Revenues 876,100 986,200 -- --
Other Revenues 173,900 114,600 -- --
----------- ----------- --------- ---------
Total Utility Gas Revenues $23,344,500 $24,829,700 4,355,500 4,667,000
=========== =========== ========= =========
</TABLE>
Base firm sales service are traditional bundled sales to utility customers.
Base revenues and volumes declined as a result of the impact of warmer weather
on sales in fiscal 1999 and eligible commercial and industrial customers
electing to purchase unbundled service under the firm transportation service
option. Weather during the second quarter of fiscal 1999 was 3.2 percent warmer
than the prior year which negatively impacted firm gas sales.
Firm transportation revenues and volumes increased over the prior year
second quarter from both base firm sales service customers switching to
unbundled service, as mentioned above, and increased utilization of base firm
transportation service by existing customers.
Interruptible service, seasonal and dual-fuel, is provided on a bundled
basis as well as transportation only service. Interruptible sales service
revenues declined $112,400 from the year-earlier quarter level in spite of an 11
percent increase in volumes sold. Revenues from interruptible customers are
benchmarked to competitive fuel prices and gas supply availability. The decline
in interruptible revenues is directly related to the falling price of the
benchmark competitive fuels, primarily fuel oil. Interruptible transportation
revenues declined as a result of customers choosing to move to firm
transportation and, in certain instances, electing an alternate fuel to meet
their energy needs. The margin on interruptible bundled sales is passed through
to firm customers through the PGPA (Purchased Gas Price Adjustment) and has no
impact on operating income.
Nonutility revenues totaled $5,856,300 for the three months ended February
28, 1999, an increase of 4.6 percent over the second quarter in fiscal 1998.
Revenues associated with a weather insurance product (see "Liquidity and Capital
Resources" below) is primarily responsible for the increase. Slightly offsetting
this increase was a decline in retail and propane sales. Retail merchandise
sales continue to experience declines primarily due to lower unit sales of
residential home heating equipment. Propane sales were negatively impacted by a
warmer
<PAGE>
than normal winter season in fiscal 1999. Propane profit margins remained
strong, despite a slight decline in propane gallons sold, due to competitive
pricing and fixed price contracts. Wholesale revenues benefited from a stronger
regional economy and increased sales of existing product lines. AEC (Alternate
Energy Corporation) revenues increased slightly as a result of natural gas
vehicle conversions, although this subsidiary still operates at a loss.
The average cost of gas distributed to firm customers was $3.28 per Mcf
during the second quarter of fiscal 1999 compared to $3.54 per Mcf during the
second quarter of fiscal 1998. Changes in gas costs are recovered from customers
through the PGPA.
The decline in nonutility merchandise sales in the fiscal 1999 period was
responsible for the 4.7 percent decrease in cost of sales-nonutility. Other
operation expense declined slightly from the second quarter of fiscal 1998 as a
result of decreased uncollectible expenses and lower overtime costs in the face
of the warmer weather. Maintenance expenses remained flat when compared to the
prior fiscal year.
For the three months ended February 28, 1999, interest expense remained
flat when compared to the same quarter last year. Interest expense for both
periods continues to be positively impacted by the corporate refinancing and
equity offering completed at the end of fiscal 1997.
For the six months ended February 28, 1999 compared to the six months ended
February 28, 1998
For the six months ended February 28, 1999, the consolidated net income for
Valley Resources was $2,655,500 or $0.53 per share compared to net income of
$2,470,500 or $0.50 per share for the comparable period in the prior fiscal
year. The utility operations provided net income of $2,053,800 compared to
$1,954,300 in the comparable period in the prior fiscal year. Nonutility
operations provided net income of $601,700 for the six month period of fiscal
1999 comparable to $516,200 in the prior year's six month period. Net income for
the six months ended February 28, 1999 was positively impacted by the
Corporation's weather insurance product.
Utility gas revenues and volumes for the six months ended fiscal 1999 and
fiscal 1998 were as follows:
<TABLE>
<CAPTION>
Revenues Volumes (Mcf's)
-------- ---------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Base Firm Sales Service $30,341,300 $32,005,300 4,196,800 4,490,200
Base Firm Transportation 335,900 157,400 285,800 142,100
----------- ----------- --------- ---------
Firm Gas Sales 30,677,200 32,162,700 4,482,600 4,632,300
Interruptible Service 1,056,800 1,228,700 2,588,100 2,831,400
PGPA Revenues 1,209,400 1,340,600 -- --
Other Revenues 225,400 181,200 -- --
----------- ----------- --------- ---------
Total Utility Gas Revenues $33,168,800 $34,913,200 7,070,700 7,463,700
=========== =========== ========= =========
</TABLE>
Base firm sales service revenues and volumes, sold through regulated
tariffs, declined for the six month period of fiscal 1999 primarily as a result
of weather, which was 5.1 percent warmer than the prior year period and 10.2
percent warmer than normal. To a lesser extent, the decline was due to customers
switching to base firm transportation service as mentioned above.
Decreased demand for natural gas from customers with alternate fuel
capabilities produced a 14 percent decline in interruptible revenues in the
fiscal 1999 period as compared to 1998. Sales to interruptible customers are
dependent upon the availability of natural gas and the price of alternate fuels.
Margins earned from interruptible bundled sales are returned to firm customers
through the PGPA and do not impact the profitability of the Corporation.
<PAGE>
Nonutility revenues for the six months ended February 28, 1999 totaled
$11,302,300, a decrease of less than one percent from the fiscal 1998 period.
Nonutility revenues decreased as a result of lower retail merchandise units sold
and a slight decrease in propane revenues, despite an increase in gallons sold.
Propane revenues declined due to the warmer than normal weather impact on
product pricing. Offering fixed price contracts to customers positively impacted
the volume of propane sold. Retail commercial merchandise sales and
installations also declined for the 1999 period. Wholesale sales margins
increased when compared to the prior fiscal period as a result of expanding
product line sales and a stronger regional economy. The total nonutility revenue
decline was mitigated by revenue recorded from the weather insurance product
mentioned above.
Operating expenses for the 1999 six month period were impacted by decreases
in the cost of gas sold and nonutility cost of sales. Decreases in the demand
for natural gas and a decline in the cost of gas contributed to the decrease in
gas costs. The average cost of gas distributed to firm customers was $3.50 per
Mcf for the six months ended February 28,1999 compared to $3.90 per Mcf in the
prior year period. Nonutility cost of sales decreased due to the decrease in
sales mentioned above.
Other operation expenses decreased 4.5 percent for the six months ended
February 28,1999 when compared to the period in the prior fiscal year. Operation
expenses were positively impacted by a decline in uncollectible and general and
administrative expenses.
Interest expense increased less than one percent for the 1999 six month
period when compared to the prior year. Interest expense for both periods
continues to be positively impacted by the 1997 corporate refinancing mentioned
above.
Liquidity and Capital Resources
- -------------------------------
During the second quarter of fiscal 1999 the liquidity position of the
Corporation improved over the first quarter as a result of increased revenues
from winter period sales. Management believes the available financing
arrangements are sufficient to meet cash requirements for the foreseeable
future. The funds available under lines of credit at February 28, 1999, were
$31,800,000 and there were $5,200,000 of short-term borrowings outstanding.
Cash flows were negatively impacted during the second quarter of fiscal
1999 by purchases of natural gas to meet winter sales demand. Sales during the
quarter, although greater than the first quarter, were less than anticipated due
to warmer than normal winter weather which also negatively impacted liquidity.
Also, the warmer weather resulted in the holding of supplemental fuel
inventories which the Corporation had anticipated to be sold.
Construction expenditures declined during the second quarter of fiscal
1999, as planned, due to constraints imposed by local communities during the
winter period, thereby improving liquidity.
The liquidity position of the Corporation is anticipated to improve in the
third quarter, as well, as winter bills are collected. Cash expended on the
construction program are also expected to increase during the third quarter of
fiscal 1999 which will negatively impact cash flows. This increased cash
requirement is expected to be offset by the improved cash flows.
In the first fiscal quarter, the Corporation purchased a weather insurance
product which applies to the winter heating season from November 1998 through
March 1999. This product provides insurance against unfavorable shifts in
weather conditions. The insurance coverage pays the Corporation cash when degree
days for the measurement period fall outside the predetermined variance from
normal. The policy acts like a "collar" in that payments are due the insurer
when weather conditions positively impact revenues above a predetermined limit.
The measurement period occurs at the expiration of the policy. The Corporation
expects to receive a payment from the policy during the third fiscal quarter,
thereby favorably impacting liquidity.
Year 2000 Issues
- ----------------
Certain of the software applications currently in use by the Corporation
are certified to be Year 2000 compliant by the software vendors from whom the
applications were purchased.
<PAGE>
Certain other software applications currently in use by the Corporation are
not Year 2000 compliant. The Corporation has made plans to modify, replace or
upgrade those applications which are not Year 2000 compliant before July 1,
1999. The Corporation is conducting a survey and compiling cost estimates of the
effort involved to perform those modifications, replacements and upgrades.
Currently, management believes that the cost to bring all of its software
applications into Year 2000 compliance will not have a material adverse effect
on the Corporation's results of operations, and involves a remaining capital
outlay of approximately $50,000 to $100,000. There can be no guarantee that the
systems of other companies on which the Corporation's systems rely will be
timely converted, or that a failure to convert by another company, or a
conversion that is incompatible with the Corporation's systems, would not have a
material adverse impact on the Corporation. The Corporation has been in contact
with its primary third party service providers. These companies, including
telephone and electric providers, have indicated that their Year 2000
remediation efforts were in progress and on schedule.
The costs of the project and the date on which the Corporation plans to
complete the Year 2000 modifications are based on management's best estimates,
which were derived utilizing numerous assumptions of future events including the
continued availability of certain resources, third-party modification plans and
other factors. However, there can be no guarantee that these estimates will be
achieved; actual results could differ materially from those plans. Specific
factors that might cause such material differences include, but are not limited
to, the availability and cost of personnel trained in this area, the ability to
locate and correct all relevant computer programs and microprocessors, and
similar uncertainties. The company has and maintains contingency plans,
schedules, functions and responsibilities to insure and maintain services and
minimize interruptions. These responsibilities are active continuously. These
activities are under review to identify changes that may be appropriate. These
discussions and actions are being taken as a precautionary measure.
Forward Looking Statements; Risk and Uncertainties
- --------------------------------------------------
Statements contained in this report that are not historical facts are
forward-looking statements made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. In addition, words such as
"believes," "anticipates," "expects" and similar expressions are intended to
identify forward looking statements. Certain factors that could cause the actual
results to differ materially from those projected in these forward-looking
statements include, but are not limited to: variations in weather, changes in
the regulatory environment, customers' preferences on energy sources, general
economic conditions, increased competition and other uncertainties all of which
are difficult to predict, and many of which are beyond the control of the
Corporation.
PART II: OTHER INFORMATION
Item 6 - Exhibits and Reports on Form 8-K
(a) Financial Data Schedule.
(b) None.
<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.
VALLEY RESOURCES, INC. AND SUBSIDIARIES
S/K. W. HOGAN
----------------------------------------------
K. W. Hogan
Senior Vice President, Chief Financial Officer
and Secretary
April 14, 1999
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> AUG-31-1999
<PERIOD-END> FEB-28-1999
<CASH> 554
<SECURITIES> 0
<RECEIVABLES> 17,420
<ALLOWANCES> (1,036)
<INVENTORY> 4,752
<CURRENT-ASSETS> 24,292
<PP&E> 93,589
<DEPRECIATION> (37,687)
<TOTAL-ASSETS> 105,207
<CURRENT-LIABILITIES> 18,265
<BONDS> 20,029
0
0
<COMMON> 4,993
<OTHER-SE> 31,079
<TOTAL-LIABILITY-AND-EQUITY> 105,207
<SALES> 44,471
<TOTAL-REVENUES> 44,471
<CGS> 25,277
<TOTAL-COSTS> 40,447
<OTHER-EXPENSES> 15,170
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,518
<INCOME-PRETAX> 3,966
<INCOME-TAX> 1,310
<INCOME-CONTINUING> 2,656
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,656
<EPS-PRIMARY> 0.53
<EPS-DILUTED> 0.53
</TABLE>
