______________________________________________________________________
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(mark one)
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended July 31, 1995
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For transition period from ________________ to _________________
0-16438
(Commission File Number)
NATIONAL TECHNICAL SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
Delaware 95-4134955
(State of Incorporation) (IRS Employer
Identification
number)
24007 Ventura Boulevard, Calabasas, California
(Address of registrant's principal executive office)
(818) 591-0776 91302
(Registrant's telephone number) (Zip 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
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. YES [x] NO [ ]
The number of shares of common stock, par value $.01 per share,
outstanding as of July 31, 1995 was 6,657,027.
_________________________________________________________________
1 <PAGE>
<PAGE>
NATIONAL TECHNICAL SYSTEMS, INC. AND SUBSIDIARIES
Index
PART I. FINANCIAL INFORMATION Page No.
Financial Statements:
Condensed Consolidated Balance Sheets
July 31, 1995 and January 31, 1995 3
Condensed Consolidated Statements of Income
Six Months Ended July 31, 1995 and 1994 4
Condensed Consolidated Statements of Income
Three Months Ended July 31, 1995 and 1994 5
Condensed Consolidated Statements of Cash Flows
Six Months Ended July 31, 1995 and 1994 6
Notes to the Condensed Consolidated
Financial Statements 7
Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
PART II. OTHER INFORMATION & SIGNATURE 14
2 PAGE
<PAGE>
PART I -- FINANCIAL INFORMATION
NATIONAL TECHNICAL SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (unaudited)
July 31, January 31,
Assets 1995 1995
-------- ----------
Current assets:
Cash $ 1,286,000 $ 1,696,000
Receivables, less allowance for doubtful
accounts of $621,000 at July 31, 1995 and
$577,000 at January 31,1995 10,842,000 9,680,000
Inventories 2,293,000 2,082,000
Deferred income taxes 460,000 434,000
Prepaid expenses 794,000 757,000
---------- ----------
Total current assets 15,675,000 14,649,000
Property, plant and equipment, at cost 41,175,000 40,413,000
Less: accumulated depreciation 24,525,000 23,500,000
---------- ----------
Net property, plant and equipment 16,650,000 16,913,000
Intangible assets 421,000 529,000
Property held for sale 544,000 544,000
Other assets 388,000 433,000
---------- ----------
Total Assets $ 33,678,000 $ 33,068,000
========== ==========
Liabilities and Stockholders' Equity
Current liabilities:
Short term borrowings $ 4,600,000 $ 0
Accounts payable 2,976,000 2,866,000
Accrued expenses 1,780,000 1,627,000
Income taxes payable 0 184,000
Current installments of long-term debt 1,965,000 2,060,000
---------- ----------
Total current liabilities 11,321,000 6,737,000
Long-term debt, excluding current installments 5,658,000 10,045,000
Deferred income taxes 1,607,000 1,455,000
Minority Interest 139,000 0
Stockholders' equity:
Common stock of $.01 par value. Authorized, 66,000 66,000
20,000,000; issued and outstanding 6,651,000 as
of July 31, 1995 and 6,650,000 as of January
31, 1995
Additional paid-in capital 10,494,000 10,480,000
Retained earnings 4,393,000 4,285,000
---------- ----------
Total stockholders' equity 14,953,000 14,831,000
---------- ----------
Total Liabilities and Stockholders' Equity $ 33,678,000 $ 33,068,000
========== ==========
See accompanying notes to Condensed
Consolidated Financial Statements.
3 PAGE
<PAGE>
NATIONAL TECHNICAL SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income (unaudited)
for Six Months Ended July 31, 1995 and 1994
1995 1994
---------- ---------
Revenues $ 20,488,000 $ 19,266,000
Cost of sales 15,950,000 14,526,000
---------- ----------
Gross profit 4,538,000 4,740,000
Selling, general and administrative expense 3,377,000 3,485,000
---------- ---------
Operating income 1,161,000 1,255,000
Other income (expense):
Interest expense, net (602,000) (591,000)
Other 13,000 1,000
---------- ----------
Total other expense (589,000) (590,000)
---------- ----------
Income before income taxes and minority 572,000 665,000
interest
Income taxes 258,000 300,000
---------- ----------
Income before minority interest 314,000 365,000
Minority Interest 12,000 0
---------- ----------
Net income $ 302,000 $ 365,000
========== =========
Primary and fully diluted net income per $ 0.05 $ 0.06
common share ========== =========
Weighted average number of common shares and
common stock equivalents outstanding 6,652,000 6,614,000
========== =========
See accompanying notes to Condensed
Consolidated Financial Statements.
4 PAGE
<PAGE>
NATIONAL TECHNICAL SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income (unaudited)
for Three Months Ended July 31, 1995 and 1994
1995 1994
---------- ----------
Revenues $ 10,883,000 $ 9,134,000
Cost of sales 8,417,000 6,724,000
---------- ----------
Gross profit 2,466,000 2,410,000
Selling, general and administrative expense 1,661,000 1,770,000
---------- ----------
Operating income 805,000 640,000
Other income (expense):
Interest expense, net (298,000) (343,000)
Other 35,000 30,000
---------- ----------
Total other expense (263,000) (313,000)
---------- ----------
Income before income taxes and minority 542,000 327,000
interest
Income taxes 244,000 148,000
---------- ----------
Income before minority interest 298,000 179,000
Minority Interest 10,000 0
---------- ----------
Net income $ 288,000 $ 179,000
========== ==========
Primary and fully diluted net income per $ 0.04 $ 0.03
common share ========== ==========
Weighted average number of common shares and
common stock equivalents outstanding 6,652,000 6,614,000
========== ==========
See accompanying notes to Condensed
Consolidated Financial Statements.
5 PAGE
<PAGE>
NATIONAL TECHNICAL SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (unaudited)
for Six Months Ending July 31, 1995 and 1994
1995 1994
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 302,000 $ 365,000
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 1,163,000 1,158,000
Provision for losses on receivables 44,000 96,000
Deferred income taxes 126,000 154,000
Gain on sale of assets (5,000) 0
Net changes in assets and liabilities:
Accounts receivable (1,206,000) 971,000
Inventories (211,000) 232,000
Prepaid expenses (37,000) (149,000)
Other assets 32,000 (56,000)
Accounts payable 110,000 (1,576,000)
Accrued expenses 153,000 131,000
Income taxes (184,000) (63,000)
Undistributed earnings of affiliate 12,000 0
--------- ---------
Net cash provided by operating activities 299,000 1,263,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment (779,000) (1,767,000)
Proceeds on sale of fixed assets 5,000 0
--------- ---------
Net cash used for investing activities (774,000) (1,767,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long-term debt 213,000 2,006,000
Repayments of current and long-term debt (95,000) (1,997,000)
Cash dividends paid (67,000) (66,000)
Proceeds from stock options exercised 14,000 27,000
--------- ---------
Net cash provided by (used for) financing 65,000 (30,000)
activities --------- ---------
Net decrease in cash (410,000) (534,000)
Beginning cash balance 1,696,000 1,419,000
--------- ---------
ENDING CASH BALANCE $ 1,286,000 $ 885,000
========= =========
See accompanying notes to Condensed
Consolidated Financial Statements.
6 PAGE
<PAGE>
NATIONAL TECHNICAL SYSTEMS, INC. AND SUBSIDIARIES
Notes to the Condensed Consolidated Financial Statements
1. In accordance with instructions to Form 10-Q the
accompanying financial statements and notes have been
condensed and, therefore, do not contain all disclosures
required by generally accepted accounting principles. These
statements should be read in conjunction with the financial
statements and notes thereto included in the Registrant's
Form 10-K for the year ended January 31, 1995.
2. The statements presented as of and for the six-month periods
ended July 31, 1995 and 1994 are unaudited. In Management's
opinion, all adjustments have been made to present fairly
the results of such unaudited interim periods. All such
adjustments are of a normal recurring nature.
3. While the Registrant's business is not materially seasonal,
the quarterly results of operations should not be construed
as representing pro rata results of the Registrant's fiscal
year.
4. Income taxes for the interim periods are computed using the
effective tax rates estimated to be applicable for the full
fiscal year. The Registrant expects to pay state and
alternative minimum federal income taxes for the fiscal year
ended January 31, 1996.
5. Net income per share for the six-month periods ended July
31, 1995 and 1994 was computed by dividing net income by the
weighted average number of common shares outstanding during
the periods. Common stock equivalents were excluded because
their effect was immaterial or antidilutive.
6. The consolidated financial statements include the accounts
of the Registrant and its wholly owned and financially
controlled subsidiaries. All significant intercompany
balances and transactions have been eliminated in
consolidation.
7. Inventories consist of accumulated costs applicable to
uncompleted contracts and are stated at actual cost which is
not in excess of estimated net realizable value.
8. Cash paid for interest and taxes for the six months ended
July 31, 1995 was $600,000 and $317,000 respectively. Cash
paid for interest and taxes for the six months ended July
31, 1994 was $514,000 and $96,000 respectively.
9. On January 17, 1995, the Board of Directors declared a cash
dividend of $.01 per share to shareholders of record on
February 10, 1995. The cash dividend, which totaled
$67,000, was paid on February 24, 1995.
10. Minority interest in the Registrant's NQA-USA, Inc.
subsidiary is a result of 50% of the stock of NQA-USA, Inc.
being issued to NQA-UK in December 1994. Profits are shared
65% to NQA-USA, Inc. and 35% to NQA-UK.
7 PAGE
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following discussion should be read in conjunction with the
consolidated quarterly financial statements and notes thereto.
All information is based upon operating results of National
Technical Systems, Inc. for the six months ended July 31.
(tabular header information: Dollars in thousands)
---------------------------------------------------
RESULTS OF OPERATIONS
---------------------
REVENUES
--------
Six months ended July 31 1995 % Change 1994
------- -------- -------
Technical services $16,369 3.5% $15,811
Environmental services 980 1,026.4% 87
Registration services 1,018 72.0% 592
Contract labor services 2,121 (23.6%) 2,776
------- --------- ------
Total net revenue $20,488 6.3% $19,266
======= =======
For the six months ended July 31, 1995, consolidated revenues
increased by $1,222,000 or 6.3% when compared to the same period
in 1994. In 1995, the technical services segment revenues
increased as a result of increases in its traditional defense and
aerospace related business. The Registrant s environmental
services segment revenues increased by $893,000 as a result of
continuing efforts by the Registrant to market its new lines of
business. Revenues in the registration services segment also
showed continued revenue growth of $426,000. The contract labor
segment revenues decreased by $655,000, reflecting the continuing
effects of a declining backlog and more competitive market for
nuclear contract labor services.
It is anticipated by the Registrant that revenues in the
technical services segment will improve slightly and remain
approximately consistent with last year s levels, while revenues
in both the environmental services segment and the registration
services segment should continue to increase at a more moderate
rate for the remainder of fiscal 1996. It is further anticipated
that revenues in the contract labor services segment will
continue at current levels through the end of the fiscal year.
8 <PAGE>
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GROSS PROFIT
-------------
Six months ended July 31 1995 % Change 1994
--------- --------- ---------
Technical services $3,682 (6.2%) $3,925
% to segment revenue 22.5% 24.8%
Environmental services 147 412.8% (47)
% to segment revenue 15.0% (54.0%)
Registration services 364 29.1% 282
% to segment revenue 35.8% 47.6%
Contract labor services 345 (40.5%) 580
% to segment revenue 16.3% 20.9%
Total $4,538 (4.3%) $4,740
% to total net revenue 22.1% 24.6%
Gross profit as a percentage of net revenues decreased in the six
months ended July 31, 1995 when compared to the same quarter in
1994. This decrease was due to pricing pressures from increased
competition in the technical services and contract labor services
segments. The Registrant anticipates the competitive environment
for aerospace and defense testing and contract labor services to
persist. In addition, due to the decline in gross profits, the
Registrant initiated an aggressive cost reduction program which
included reductions in its workforce and consolidations of some
of its operations. Therefore, barring any unforeseen
circumstances, gross profits should increase slightly and return
to fiscal 1995 levels by the end of fiscal 1996.
SELLING, GENERAL & ADMINISTRATIVE
---------------------------------
Six months ended July 31 1995 % Change 1994
--------- --------- ---------
Technical services $2,498 (8.7%) $2,737
% to segment revenue 15.3% 17.3%
Environmental services 98 653.8% 13
% to segment revenue 10.0% 14.9%
Registration services 240 114.3% 112
% to segment revenue 23.6% 18.9%
Contract labor services 488 (15.1%) 575
% to segment revenue 23.0% 20.7%
Corporate 53 10.4% 48
Total S G & A $3,377 (3.1%) $3,485
% to total net revenue 16.5% 18.1%
Selling, general and administrative expenses as a percentage of
net revenues decreased in the six months ending July 31, 1995
compared to the same period in 1994 as a result of managements
cost reduction programs and increased revenues. These reductions
were offset by increases in the environmental services and
registration services segments which are reflective of the cost
9 PAGE
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of pursuing business in these growing segments of the Registrant.
The Registrant continues to look for ways to reduce costs but
remain effective in these areas.
INTEREST EXPENSE
----------------
Net interest expense increased $11,000 in the six months ending
July 31, 1995 when compared to the same period in 1994. This
increase was principally due to higher interest rates on
existing loans and increases in the term loan and line of credit
balances.
INCOME TAXES
------------
The income tax provisional rate for the first six months of 1995
and 1994 reflects a rate in excess of the U.S. federal statutory
rate primarily due to the inclusion of state income taxes. The
Registrant's provision for the six months ending July 31, 1995
was slightly less than the same period in 1994 due to the lower
income before taxes in 1995. Management has determined that it
is more likely than not that the deferred tax asset will be
realized on the basis of offsetting it against deferred tax
liabilities. It is the Registrant's intention to evaluate the
realizability of the deferred tax asset quarterly by assessing
the need for a valuation account.
NET INCOME
-----------
The decrease in net income in the six months ending July 31, 1995
compared to the same period in 1994 was due to lower gross profit
margins and slightly higher interest costs.
REVENUES
--------
Quarter ended July 31 1995 % Change 1994
------- --------- ---------
Technical services $ 8,491 15.1% $7,374
Environmental services 622 740.5% 74
Registration services 555 44.9% 383
Contract labor services 1,215 (6.8%) 1,303
------- ------
Total net revenue $10,883 19.1% $9,134
======= ======
For the three months ended July 31, 1995, consolidated revenues
increased by $1,749,000 or 19.1% when compared to the same period
in 1994. In 1995, the technical services segment revenues
increased as a result of increases in its traditional defense and
aerospace related business in addition to increases in the
nuclear related business. The Registrant s environmental
services segment revenues increased by $548,000 as a result of
continuing efforts by the Registrant to market its new lines of
business. Revenues in the registration services segment also
showed continued revenue growth of $172,000. The contract labor
segment revenues decreased by $88,000, reflecting the continuing
10 <PAGE>
<PAGE>
effects of a declining backlog and more competitive market for
nuclear contract labor services.
It is anticipated by the Registrant that revenues in the
technical services segment will improve slightly and remain
approximately consistent with last year s levels, while revenues
in both the environmental services segment and the registration
services segment should continue to increase at a more moderate
rate for the remainder of fiscal 1996. It is further anticipated
that revenues in the contract labor services segment will
continue at current levels through the end of the fiscal year.
GROSS PROFIT
------------
Quarter ended July 31 1995 % Change 1994
--------- --------- ---------
Technical services $2,021 (2.8%) $2,079
% to segment revenue 23.8% 28.2%
Environmental services 62 203.3% (60)
% to segment revenue 10.0% (81.1%)
Registration services 246 24.2% 198
% to segment revenue 44.3% 51.7%
Contract labor services 137 (29.0%) 193
% to segment revenue 11.3% 14.8%
Total $2,466 2.3% $2,410
% to total net revenue 22.7% 26.4%
Gross profit as a percentage of net revenues decreased in the
quarter ended July 31, 1995 when compared to the same quarter in
1994. This decrease was due to pricing pressures from increased
competition in the technical services and contract labor services
segments. The Registrant anticipates the competitive environment
for aerospace and defense testing and contract labor services
will persist for the foreseeable future. However, the market for
automotive testing should show some improvement. In addition,
due to the decline in gross profits, the Registrant initiated an
aggressive cost reduction program which included reductions in
its workforce and consolidations of certain of its operations.
Therefore, barring any unforeseen circumstances, gross profits
should increase slightly and return to fiscal 1995 levels by the
end of fiscal 1996.
11 <PAGE>
<PAGE>
SELLING, GENERAL & ADMINISTRATIVE
---------------------------------
Quarter ended July 31 1995 % Change 1994
--------- --------- ---------
Technical services $1,222 (13.0%) $1,405
% to segment revenue 14.4% 19.1%
Environmental services 48 269.2% 13
% to segment revenue 7.7% 17.6%
Registration services 104 67.7% 62
% to segment revenue 18.7% 16.2%
Contract labor services 259 (2.6%) 266
% to segment revenue 21.3% 20.4%
Corporate 28 16.7% 24
Total S G & A $1,661 (6.2%) $1,770
% to total net revenue 15.3% 19.4%
Selling, general and administrative expenses as a percentage of
net revenues decreased in the three months ending July 31, 1995
compared to the same period in 1994 as a result of management s
ongoing cost containment efforts. These reductions were offset
by increases in the environmental services and registration
services segments which are reflective of the cost of pursuing
business in these growing segments of the Registrant. The
Registrant continues to look for ways to reduce costs but remain
effective in these areas.
INTEREST EXPENSE
----------------
Net interest expense decreased $45,000 in the quarter ending
July 31, 1995 when compared to the same period in 1994. This
decrease was principally due to decreases in the term loan and
line of credit balances.
INCOME TAXES
------------
The income tax provisional rate for the quarters of 1995 and
1994 reflects a rate in excess of the U.S. federal statutory rate
primarily due to the inclusion of state income taxes. The
Registrant's provision for the quarter ending July 31, 1995 was
higher than the same period in 1994 due to the increase in income
before taxes and minority interest. Management has determined
that it is more likely than not that the deferred tax asset will
be realized on the basis of offsetting it against deferred tax
liabilities. It is the Registrant's intention to evaluate the
realizability of the deferred tax asset quarterly by assessing
the need for a valuation account.
NET INCOME
----------
The increase in net income in the quarter ending July 31, 1995
compared to the same period in 1994 was due to increased revenues
along with a reduction in costs.
12 <PAGE>
<PAGE>
BUSINESS ENVIRONMENT
--------------------
Revenues in the Registrant s defense-related test business
continued to be very competitive due to the ongoing cutbacks and
consolidations in the aerospace and defense industry. The
Registrant has, however, maintained a significant volume of work
at lower prices compared to last year. After a detailed market
analysis, the Registrant has decided, as part of its aggressive
cost reduction program, to discontinue its aerospace test
operations at its Hartwood, Virginia facility. This facility
will continue to operate in support of the Registrant s Marine
Corps support contract in the Virginia area as well as providing
a base of operation for the Registrant s national sales office.
The Registrant plans to sell some of the aerospace test assets at
this facility to others and reallocate the majority of the
remaining assets to its other NTS laboratories. Also, at the end
of the Marine Corps support contract, the Registrant will decide
whether to liquidate or lease out the real property. It is
anticipated by the Registrant that the discontinuance of
operations at this facility will not have a material affect on
earnings nor the Registrant s ability to service its current
customer base.
The Registrant's strategy of establishing strategic alliances and
winning work from companies that have downsized or discontinued
their own testing operations has mitigated the trends in the
defense-related business to some degree. Furthermore, the
Registrant s strategy of growth through diversification has been
successful with the continued revenue growth in ISO registration
services and environmental services. Because of the foregoing,
as well as other factors affecting the Registrant's operating
results, past financial performance should not be considered to
be a reliable indicator of future performance and investors
should not use historical trends to anticipate results or trends
in future periods.
LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
In the six months ended July 31, 1995, cash provided by
operations decreased by $964,000 when compared to the same period
in 1994. Major items contributing to this decrease were
significant increases in accounts receivable balances partially
offset by increases in accounts payable and accrued expense
balances.
Net cash used in investing activities in the six-month period
ended July 31, 1995 decreased $993,000 when compared to the same
period in 1994. The Registrant anticipates that its capital
spending level in fiscal 1996 will continue to be lower than
fiscal 1995. The actual level of spending will be dependent on a
variety of factors, including general economic conditions, bank
covenants and the Registrant's operating requirements.
In the six-month period ended July 31, 1995, net cash provided by
financing activities consisted of increases in the bank term
loans and lines of credit of $213,000 and proceeds from the
13 <PAGE>
<PAGE>
exercise of stock options of $14,000, offset by debt reduction on
short term and long term debt of $95,000 and payment of a $0.01
per share dividend. During fiscal 1995 the Registrant s
revolving lines of credit with Bank of America NT & SA and Sanwa
Bank California were extended to June 1996. During the six-
month period ended July 31, 1995, long term debt decreased by
$4,595,000 from the same period in 1994. This was due primarily
to the reclassification of the revolving lines of credit as
current liabilities. The Registrant is currently negotiating
with its existing banks to renew its lines of credit. Management
believes, based upon its current profitable operations and
discussions with its banks, that these lines will be renewed.
The Registrant also has a term loan agreement with Bank of
America NT & SA and Sanwa Bank California for an aggregate amount
of $5,000,000 payable in monthly installments of $83,000 through
August 31, 1998 and an additional $1,000,000 loan with Sanwa Bank
California entered into in January 1995 with payments of $16,667
through January 31, 2000.
Management is not aware of any significant demands for capital
funds that may materially affect the short or long-term liquidity
in the form of large fixed asset acquisitions, unusual working
capital commitments or contingent liabilities. The Registrant's
future working capital will be provided from operations,
supplemented by its bank credit lines. The Registrant's bank
revolving lines of credit, which currently aggregate $5,000,000
for short-term liquidity needs had $400,000 available at July 31,
1995.
14 <PAGE>
<PAGE>
PART II. OTHER INFORMATION
-------- -----------------
Item 6. Exhibits and Reports on Form 8-K
------- --------------------------------
During the quarter ended July 31, 1995
the registrant did not file a current report
on Form 8-K
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.
NATIONAL TECHNICAL SYSTEMS, INC.
Date: September 13, 1995 By: /s/ Lloyd Blonder
___________________________
Lloyd Blonder
Senior Vice President
Chief Financial Officer
(Signing on behalf of the
registrant and as principal
financial officer)
15 <PAGE>
<PAGE>
EXHIBIT INDEX
-------------
Exhibit Page
No. Description No.
---------------------------------------------------------------------
27 Financial Data Schedule 17
16 <PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JAN-31-1996
<PERIOD-END> JUL-31-1995
<CASH> 1,286
<SECURITIES> 0
<RECEIVABLES> 10,842
<ALLOWANCES> 621
<INVENTORY> 2,293
<CURRENT-ASSETS> 15,675
<PP&E> 41,175
<DEPRECIATION> 24,525
<TOTAL-ASSETS> 33,678
<CURRENT-LIABILITIES> 11,321
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 33,678
<SALES> 20,488
<TOTAL-REVENUES> 20,488
<CGS> 15,950
<TOTAL-COSTS> 15,950
<OTHER-EXPENSES> 3,966
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 602
<INCOME-PRETAX> 560
<INCOME-TAX> 258
<INCOME-CONTINUING> 302
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 302
<EPS-PRIMARY> 0.05
<EPS-DILUTED> 0.05
</TABLE>
