FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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 September 30, 1997
--------------------
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 1-4684
---------------------
Blessings Corporation
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 13-5566477
- -------------------------------- --------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
200 Enterprise Drive, Newport News, VA 23603
- -------------------------------------------------------------------------------
(Address of principal executive offices)
(Zip Code)
757 887 210
- -------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
None
- -------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if
changed since last report)
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
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Class Outstanding as of November 1, 1997
- ---------------------------- -------------------------------------
Common stock, $.71 par value 10,116,800
<PAGE>
BLESSINGS CORPORATION
INDEX
PAGE NUMBER
PART I: FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Condensed Balance Sheets
September 30, 1997 and December 31, 1996 1
Consolidated Condensed Statements of
Earnings - three and nine months ended
September 30, 1997 and September 30, 1996 2
Consolidated Condensed Statements of
Cash Flows - three and nine months ended
September 30, 1997 and September 30, 1996 3
Notes to Consolidated Condensed
Financial Statements 4
Review by Independent Certified
Public Accountants 8
Independent Accountants' Report 9
Letter in Lieu of Consent of Independent
Public Accountants 10
Item 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations 11
PART II: OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 14
<PAGE>
PART I. FINANCIAL INFORMATION
BLESSINGS CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
September 30, 1997 December 30,
1996*
-------------------- ---------------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash & cash equivalents $ 5,096,900 $ 5,801,800
Accounts receivable less allowance for
doubtful accounts of $1,811,000 &
$1,541,000 21,959,800 22,832,200
Inventories 12,400,200 12,905,700
Prepaid deferred taxes 1,417,900 1,417,900
Prepaid expenses 1,635,900 1,723,700
------------ ------------
Total Current Assets 42,510,700 44,681,300
------------ ------------
Property, plant and equipment less
accumulated depreciation & amortization
of $43,915,800 & $36,596,200 87,822,200 80,573,600
Goodwill net of accumulated amortization
of $3,454,600 and $2,659,500 23,050,700 23,845,800
Deferred taxes 7,254,500 7,565,400
Other assets 1,717,800 1,410,600
------------ ------------
Total Assets $162,355,900 $158,076,700
============ ============
LIABILITIES & SHAREHOLDERS' EQUITY Current Liabilities:
Accounts payable and accrued expenses $ 22,636,400 $ 25,025,800
Income taxes payable 1,388,100 528,700
Current installments on long-term debt 3,291,500 3,744,300
Deferred taxes 1,170,000 1,024,200
------------ -------------
Total Current Liabilities 28,486,000 30,323,000
------------ -------------
Long-term debt 31,909,400 34,253,100
Deferred taxes on income 8,399,100 8,373,800
Deferred supplemental pension liability 2,265,000 1,950,700
Minority interest 13,872,500 11,427,700
Shareholders' Equity:
Common stock 7,252,500 7,252,500
Additional paid in capital 5,967,200 6,012,900
Translation loss (6,255,900) (6,255,900)
Retained earnings 71,509,900 65,631,200
------------- -------------
78,473,700 72,640,700
Common stock in treasury at cost (1,049,800) (892,300)
------------- -------------
Total Shareholders' Equity 77,423,900 71,748,400
------------- -------------
Total Liabilities and Shareholders'
Equity $162,355,900 $158,076,700
============= =============
See accompanying Notes to Consolidated Condensed Financial Statements.
*The balance sheet at December 31, 1996 has been taken from audited Financial
Statements at that date, and condensed.
<PAGE>
<TABLE>
<CAPTION>
BLESSINGS CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(Unaudited)
3 Months Ended 9 Months Ended
----------------------------------- ---------------------------------------
September 30, September 30, September 30, September 30,
1997 1996 1997 1996
----------------- ---------------- ----------------- ----------------
Continuing Operations:
<S> <C> <C> <C> <C>
Net sales $43,707,700 $40,008,000 $131,969,400 $115,794,700
----------- ----------- ------------ ------------
Cost of sales 31,946,100 30,162,600 94,073,800 82,855,200
Selling, general and administrative 6,869,500 7,029,200 22,363,600 20,518,400
Foreign exchange (gain) loss (139,400) 75,800 18,700 241,100
Interest & dividends - net 663,300 636,800 2,107,200 2,010,500
----------- ----------- ------------ ------------
Total costs and expenses 39,339,500 37,904,400 118,563,300 105,625,200
----------- ----------- ------------ ------------
Earnings from operations before provision for
taxes on income and minority interest 4,368,200 2,103,600 13,406,100 10,169,500
----------- ----------- ------------ ------------
Taxes on income
Current 1,331,700 1,658,300 4,852,700 4,404,200
Deferred 201,800 (1,162,400) 229,900 (336,200)
----------- ----------- ------------ ------------
Total taxes 1,533,500 495,900 5,082,600 4,068,000
----------- ----------- ------------ ------------
Minority interest in net income of subsidiary 872,700 430,400 2,444,800 1,671,900
----------- ----------- ------------ ------------
Net earnings $ 1,962,000 $ 1,177,300 $ 5,878,700 $ 4,429,600
=========== =========== ============ ============
Average number of shares of common
stock outstanding 10,114,803 10,159,871 10,118,353 10,154,754
=========== =========== ============ ============
Common stock outstanding at close of period 10,114,803 10,142,604 10,114,803 10,142,604
=========== =========== ============ ============
Net earnings per share $ .19 $ .12 $ .58 $ .44
=========== =========== ============ ============
Dividends per share $ -- $ .10 $ -- $ .30
=========== =========== ============ ============
See accompanying Notes to Consolidated Condensed Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
BLESSINGS CORPORATION & SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
3 Months Ended 9 Months Ended
---------------------------------- --------------------------------
September 30, September 30, September 30, September 30,
1997 1996 1997 1996
------------- ------------- ------------- --------------
Cash flows from operating activities:
<S> <C> <C> <C> <C>
Net earnings from operations $ 1,962,000 $ 1,177,300 $ 5,878,700 $ 4,429,600
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 2,670,700 2,610,200 7,951,900 7,126,600
Amortization - goodwill 265,100 265,000 795,200 795,100
Amortization - other 15,000 4,000 45,000 10,000
Minority interest in net income of con-
solidated subsidiary 872,700 430,400 2,444,800 1,671,900
Provision for losses on accounts receivable 90,000 180,000 397,500 360,000
(Gain) loss on sale of assets (26,500) 71,000 106,200 49,400
Change in assets and liabilities:
(Increase) decrease in accounts receivable (1,627,700) (1,734,700) 583,300 (2,231,300)
(Increase) decrease in inventories 1,490,300 832,500 538,000 (1,894,600)
(Increase) decrease in prepaid expenses (710,300) 349,700 (132,500) 9,000
Increase (decrease) in accounts payable
& accrued expenses 636,100 1,374,800 (2,768,900) 23,700
Increase (decrease) in taxes on income (219,900) 957,600 1,045,200 1,450,800
Increase (decrease) in deferred taxes
on income 201,800 (1,034,000) 229,900 (405,300)
(Increase) decrease in other assets 73,700 (330,100) (27,200) (357,500)
Increase (decrease) in other liabilities 318,800 207,400 116,700 337,200
----------- ----------- ------------ ------------
Net cash prov. (req.) by operating activities 6,011,800 5,361,100 17,203,800 11,374,600
----------- ----------- ------------ ------------
Cash flows from investing activities:
Proceeds from disposition of fixed assets 52,500 19,100 189,500 50,000
Capital expenditures (4,619,200) (6,751,200) (15,169,200) (15,028,400)
Decrease in notes receivable 25,000 25,000 25,000 25,000
----------- ----------- ------------ ------------
Net cash required by investing activities (4,541,700) (6,707,100) (14,954,700) (14,953,400)
----------- ----------- ------------ ------------
Cash flows from financing activities:
Increase (decrease) in short-term borrowings (1,465,000) -- -- 2,078,200
Reduction of long-term debt (876,600) (914,200) (2,796,500) (14,185,100)
Proceeds from issuance of long-term debt -- -- -- 20,000,000
Issuance and acquisition of treasury stock
- net (45,400) (237,500) (203,200) 177,300
Dividends paid -- (1,016,800) -- (3,045,500)
----------- ----------- ------------ ------------
Net cash prov. (req.) by financing activities (2,387,000) (2,168,500) (2,999,700) 5,024,900
----------- ----------- ------------ ------------
Effect of exchange rate changes on cash 81,900 6,700 45,700 11,100
----------- ----------- ------------ ------------
Net incr. (decr.) in cash and cash equivalents (835,000) (3,507,800) (704,900) 1,457,200
Cash and cash equivalents at beginning of period 5,931,900 8,281,900 5,801,800 3,316,900
----------- ----------- ------------ ------------
Cash and cash equivalents at end of period $ 5,096,900 $ 4,774,100 $ 5,096,900 $ 4,774,100
=========== =========== ============ ============
See accompanying Notes to Consolidated Condensed Financial Statements.
</TABLE>
<PAGE>
BLESSINGS CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED
FINANCIAL STATEMENTS
(See Independent Accountants' Report)
1. The consolidated condensed balance sheet as of September 30, 1997, the
consolidated condensed statements of earnings for the three and nine
months ended September 30, 1997, and 1996, and the consolidated
condensed statements of cash flows for the same periods then ended have
been prepared by the Company without audit. The consolidated financial
statements include Nacional de Envases, S.A. de C.V. (NEPSA), the
Company's 60% owned Mexican subsidiary. In the opinion of management,
all adjustments (consisting only of normal recurring accruals)
necessary to present fairly the financial position, results of
operations and cash flows at September 30, 1997, and for all periods
presented have been made. The Company considers all highly liquid debt
instruments purchased with a maturity of three months or less to be
cash equivalents. For accounting policies, see Notes to Consolidated
Financial Statements in the Company's Annual Report to Shareholders for
the fiscal year ended December 31, 1996.
2. In February, 1997, the Financial Accounting Standards Board (FASB)
issued Statement of Financial Accounting Standards (SFAS) No. 128,
"Earnings Per Share", which is effective for financial statements for
both interim and annual periods ending after December 15, 1997. Early
adoption of the statement is not permitted. The Company has applied
this statement to the three quarters ending September 30, 1996, to the
annual results for 1996 and to the results for the same three quarters
in 1997 and determined that the adoption of this statement would not
have a material impact on the earnings per share calculations for these
periods. After adoption, all prior period earnings per share
calculations will be restated to comply with this statement.
In June, 1997, the FASB issued SFAS No. 130, "Reporting Comprehensive
Income". This statement establishes standards for reporting and display
of comprehensive income and its components in a full set of
general-purpose financial statements. The effect of adopting the new
standard is not expected to be significant as the Company does not
currently have material items of other comprehensive income disclosed
outside the statement of operations. The standard will be adopted for
the Company's 1998 fiscal year.
Also in June 1997, the FASB issued SFAS No. 131, "Disclosure about
Segments of an Enterprise and Related Information". The statement
requires enterprises to report financial and descriptive information
about its operating segments, products and services, countries and
major customers, as well as reconciliations of segment financial
information to corresponding amounts in the general-purpose financial
statements.
3. In 1996 the Company translated foreign currency financial statements by
translating balance sheet accounts at the current exchange rate and
income statement accounts at the average exchange rate for the quarter.
Due to hyper-inflation in Mexico, the Company changed the functional
currency from the peso to the dollar effective in January, 1997. As a
result of this change, translation gains and losses previously recorded
in shareholders' equity are now recorded in income.
4. The results of operations for the nine months ended September 30, 1997
are not necessarily indicative of the results to be expected for the
full year.
<PAGE>
5. Inventories:
September 30, 1997 December 31, 1996
Raw Materials $ 8,541,500 $ 10,050,500
Finished Goods 3,858,700 2,855,200
------------ ------------
$ 12,400,200 $ 12,905,700
============ ============
6. Long-term debt:
September 30,1997 December 31, 1996
Long-term debt consists
of the following:
6.55% Note due 2002 $ 10,000,000 $ 10,000,000
7.22% Note due 2008 10,000,000 10,000,000
NEPSA Credit Agreement 14,843,700 17,187,500
Mexico Bank Loans 357,200 809,900
------------ ------------
$ 35,200,900 $ 37,997,400
Less installments due
within one year 3,291,500 3,744,300
------------ ------------
Due after one year $ 31,909,400 $ 34,253,100
============ ============
For further details, see Note 6 of the Annual Report to Shareholders
for the fiscal year ended December 31, 1996.
7. Shareholders' Equity
During the nine months ended September 30, 1997,
shareholders' equity increased as follows:
Net earnings $ 5,878,700
Issuance and acquisition of treasury
stock - net (203,200)
------------
Total increase in shareholders' equity $ 5,675,500
============
8. Interest and Dividends - Net
3 Months Ended
September 30, 1997 September 30, 1996
Interest expense $ 813,100 $ 888,600
Interest income (149,800) (251,800)
Total interest and --------- ---------
Dividends - net $ 663,300 $ 636,800
========= =========
9 Months Ended
September 30, 1997 September 30, 1996
Interest expense $2,531,500 $2,789,900
Interest income (424,300) (763,400)
Dividend income -- (16,000)
Total interest and ---------- ----------
dividends - net $2,107,200 $2,010,500
========== ==========
9. During the three and nine months ending September 30, 1997, the
effective tax rate was 35.1% and 37.9% respectively compared to 23.6% and 40.0%
respectively during the same periods ending September 30, 1996. Income taxes
have been computed based on the estimated annual effective tax rate.
10. The purchase of NEPSA on July 5, 1994, resulted in $26,505,300 of
goodwill. This amount is being amortized on a straight-line basis over its
estimated life of 25 years.
<PAGE>
11. Cash payments for interest and income taxes were:
3 Months Ended
September 30, 1997 September 30, 1996
Interest $1,056,100 $1,130,100
Income tax $ 892,000 $ 823,700
9 Months Ended
September 30, 1997 September 30, 1996
Interest $2,848,300 $2,415,000
Income tax $2,566,100 $5,082,900
<PAGE>
REVIEW BY
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
The Consolidated Condensed Financial Statements as of September 30, 1997 and for
the three and nine months then ended have been reviewed prior to filing by
Deloitte & Touche LLP, Independent Certified Public Accountants, in accordance
with established professional standards and procedures for such a review.
The report of Deloitte & Touche LLP commenting upon their review is included as
Part I - Exhibit 1.
<PAGE>
Independent Accountants' Report
To the Board of Directors
Blessings Corporation
Newport News, Virginia
We have reviewed the accompanying consolidated condensed balance sheet of
Blessings Corporation and subsidiaries as of September 30, 1997, and the related
consolidated condensed statements of earnings and cash flows for the three and
nine months ended September 30, 1997 and 1996. These financial statements are
the responsibility of the Corporation's management.
We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical procedures to financial
data and of making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with generally accepted auditing standards, the objective of which is the
expression of an opinion regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to such consolidated condensed financial statements for them to be in
conformity with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet of Blessings Corporation and
subsidiaries as of December 31, 1996, and the related consolidated statements of
earnings, shareholders' equity, and cash flows for the year then ended (not
presented herein) and in our report dated February 20, 1996, we expressed an
unqualified opinion on those consolidated financial statements. In our opinion,
the information set forth in the accompanying consolidated condensed balance
sheet as of December 31, 1996 is fairly stated, in all material respects, in
relation to the consolidated balance sheet from which is has been derived.
Deloitte & Touche LLP
Richmond, Virginia
October 17, 1997
<PAGE>
October 17, 1997
Board of Directors
Blessings Corporation
Newport News, Virginia
We have made a review, in accordance with standards established by the American
Institute of Certified Public Accountants, of the unaudited interim financial
information of Blessings Corporation and subsidiaries for the three and nine
months ended September 30, 1997 and 1996, as indicated in our report dated
October 17, 1997; because we did not perform an audit, we expressed no opinion
on that information.
We are aware that our report referred to above, which is included in your
Quarterly Report on Form 10-Q for the quarter ended September 30, 1997, is
incorporated by reference in the following Registration Statements:
Form: Registration Statement No.:
S-8 33-41762
S-8 33-54108
S-8 33-70328
S-8 33-85382
S-8 33-85384
S-8 33-12387
S-8 33-31303
S-8 33-35611
We also are aware that the aforementioned report, pursuant to Rule 436(c) under
the Securities Act of 1933, is not considered a part of the Registration
Statement prepared or certified by an accountant or a report prepared or
certified by an accountant within the meaning of Sections 7 and 11 of that Act.
Deloitte & Touche, LLP
Richmond, Virginia
<PAGE>
<TABLE>
<CAPTION>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
SUMMARY:
The following tables set forth for the period indicated 1) the amounts
and percentages which certain items reflected in the financial data bear to net
sales of the Company and 2) the percentage increase (decrease) of such items as
compared to the indicated prior period:
Relationship to Net Sales Percent
3 Months Ended Increase/(Decrease)
_______________________________________________________________________
September 30, 1997 Percent September 30, 1996 Percent 1997/1996
__________________ _______ __________________ _______ _________
<S> <C> <C> <C> <C> <C>
Net Sales $43,707,700 100.0 $40,008,000 100.0 9.2
Cost of sales 31,946,100 73.1 30,162,600 75.4 5.9
------------ ------ ------------ ------
Gross margin 11,761,600 26.9 9,845,400 24.6 19.5
Other costs and
expenses 7,393,400 16.9 7,741,800 19.4 (4.5)
------------ ------ ----------- ------
Earnings from operations
before taxes on income
and minority interest 4,368,200 10.0 2,103,600 5.3 107.7
Taxes on income 1,533,500 3.5 495,900 1.2 209.2
------------ ------ ----------- ------
Minority interest in net
income of subsidiary 872,700 2.0 430,400 1.1 102.8
------------ ------ ----------- ------
Net earnings $ 1,962,000 4.5 $ 1,177,300 2.9 66.7
============ ====== ============ ====== =======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Relationship to Net Sales Percent
9 Months Ended Increase/(Decrease)
_____________________________________________________________________
September 30, 1997 Percent September 30, 1996 Percent 1997/1996
__________________ _______ __________________ _______ _________
<S> <C> <C> <C> <C> <C>
Net Sales $131,969,400 100.0 $115,794,700 100.0 14.0
Cost of sales 94,073,800 71.3 82,855,200 71.6 13.5
------------- ------ ------------- ------
Gross margin 37,895,600 28.7 32,939,500 28.4 15.0
Other costs and
expenses 24,489,500 18.6 22,770,000 19.7 7.6
------------- ------ ------------- ------
Earnings from operations
before taxes on income
and minority interest 13,406,100 10.2 10,169,500 8.8 31.8
Taxes on income 5,082,600 3.9 4,068,000 3.5 24.9
------------- ------ ------------- ------
Minority interest in net
income of subsidiary 2,444,800 1.9 1,671,900 1.4 46.2
------------- ------ -------------- ------
Net earnings $ 5,878,700 4.5 $ 4,429,600 3.8 32.7
============= ====== ============= ====== ======
</TABLE>
<PAGE>
RESULTS OF OPERATIONS:
Except for the historical information contained herein, the matters discussed in
this quarterly report are forward-looking statements that are based upon a
number of assumptions concerning future conditions that ultimately may prove to
be inaccurate, and which involve risks and uncertainties, including but not
limited to economic, competitive, governmental regulation, legal, currency
valuations and technological factors affecting the Company's operations,
markets, products, services and prices, and other factors discussed in the
Company's filings with the Securities and Exchange Commission.
Net Sales:
A net sales increase of $16.2 million for the nine months ending
September 30, 1997, over the same period in 1996 is the result of aggressive
marketing programs in both the United States and Mexico. While the market for
healthcare films remains highly competitive in both countries, the Company has
recorded year-to-date volume gains of 9% in both the United States and Mexico
compared to the prior year, despite the discontinuation of certain low margin
product segments.
Operating Costs and Expenses:
During the quarter, gross margin improved by 2.3 percentage points,
reflective of the Company's marketing emphasis on higher margin product
segments, coupled with a downward trend of polyolefin raw materials which has
resulted in a $.06 per pound reduction in polypropylene prices and a $.04 per
pound reduction in polyethylene prices since the highs hit by each during the
summer. In addition, other costs and expenses have been favorably impacted by
improved safety performance and resultant lower worker's compensation premiums
in 1997.
Taxes on Income:
The effective tax rate as of September 30, 1997 was 37.9% compared to
40.0% for the same period last year. The decrease was primarily the result of a
lower effective tax rate due to an increase in the availability of tax credits
in Mexico.
Liquidity and Capital Resources:
As of September 30, 1997, the Company had working capital of
$14,024,700 compared to $14,358,300 at year-end, a decrease of $333,600. The
ratio of current assets to current liabilities at the end of the quarter and at
year-end was 1.5 to 1. During the quarter, the Company repaid $1 million
borrowed against its revolving credit line and $465,000 borrowed against its
short-term credit line. The Company has $25 million and $12 million available
against its revolving and short-term credit lines respectively.
PART II. OTHER INFORMATION
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
27. Financial Data Schedule
(b) Reports on Form 8-K: There was one report on Form 8-K which
was filed with the Commission on November 3, 1997. The 8-K
related to a press release announcing that the Company had
entered into a non-binding letter of intent to acquire the
remaining 40% of its 60% owned subsidiary in Mexico, Nacional
de Envases Plasticos, S. A. de C. V. (NEPSA).
<PAGE>
S I G N A T U R E S
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this to be signed on its behalf by the undersigned
thereunto duly authorized.
BLESSINGS CORPORATION
DATED: November 12, 1997 /s/Wayne A. Durboraw
_______________________________________
Wayne A. Durboraw, Controller
DATED: November 12, 1997 /s/James P. Luke
_______________________________________
James P. Luke, Executive Vice President
(Principal Financial Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 5,096,900
<SECURITIES> 0
<RECEIVABLES> 23,770,800
<ALLOWANCES> 1,811,000
<INVENTORY> 12,400,200
<CURRENT-ASSETS> 42,510,700
<PP&E> 131,738,000
<DEPRECIATION> 43,915,800
<TOTAL-ASSETS> 162,355,900
<CURRENT-LIABILITIES> 28,486,000
<BONDS> 31,909,400
0
0
<COMMON> 7,252,500
<OTHER-SE> 70,171,400
<TOTAL-LIABILITY-AND-EQUITY> 162,355,900
<SALES> 43,707,700
<TOTAL-REVENUES> 43,707,700
<CGS> 31,946,100
<TOTAL-COSTS> 39,339,500
<OTHER-EXPENSES> 7,393,400
<LOSS-PROVISION> 1,811,000
<INTEREST-EXPENSE> 813,100
<INCOME-PRETAX> 4,368,200
<INCOME-TAX> 1,533,500
<INCOME-CONTINUING> 1,962,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,962,000
<EPS-PRIMARY> .19
<EPS-DILUTED> .19
</TABLE>
