<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1998
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 1-5881
------
BROWN & SHARPE MANUFACTURING COMPANY
------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 050113140
-------- ---------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Precision Park, 200 Frenchtown Road, North Kingstown, Rhode Island 02852
-------------------------------------------------------------------------
(Address of principal executive offices and zip code)
(401) 886-2000
--------------
(Registrant's telephone number, including area code)
---------------------------------------------------------------------------
(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 Sections 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; 12,886,946 shares of Class A
common stock, 512,156 shares of Class B Common Stock, par value $1 per share,
outstanding as of March 31, 1998.
Page 1
<PAGE>
PART I. FINANCIAL INFORMATION
---------------------
Item 1. FINANCIAL STATEMENTS*
- ------ --------------------
BROWN & SHARPE MANUFACTURING COMPANY
------------------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS
-------------------------------------
(Dollars in Thousands Except Per Share Data)
(Unaudited)
<TABLE>
<CAPTION>
For the Quarter Ended Mar.31,
-----------------------------
1998 1997
---- ----
<S> <C> <C>
Net sales $85,723 $70,802
Cost of sales 57,519 46,257
Research and development expense 2,746 2,626
Selling, general and
administrative expense 21,289 19,860
------- -------
Operating profit 4,169 2,059
Interest expense 1,468 1,434
Other (expense) income, net (38) 322
------- -------
Income before income taxes 2,663 947
Income tax provision 613 190
------- -------
Net income $ 2,050 $ 757
======= =======
Net income
per common share:
Basic and diluted $ .15 $ .06
======= =======
Weighted average shares
outstanding 13,341,215 13,302,123
========== ==========
</TABLE>
* The accompanying notes are an integral part of the financial statements.
Page 2
<PAGE>
BROWN & SHARPE MANUFACTURING COMPANY
------------------------------------
CONSOLIDATED BALANCE SHEETS
---------------------------
(Dollars in Thousands)
<TABLE>
<CAPTION>
Mar. 31, 1998 December 31, 1997
-------------- ------------------
<S> <C> <C>
ASSETS (Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $ 24,427 $ 20,458
Accounts receivable, net of allowances for
doubtful accounts of $2,882 and $3,456 106,375 106,072
Inventories 74,564 73,430
Deferred income taxes 1,274 1,274
Prepaid expenses and other current assets 4,961 5,176
-------- --------
Total current assets 211,601 206,410
Property, plant and equipment:
Land 6,530 6,627
Buildings and improvements 40,895 41,211
Machinery and equipment 84,553 85,405
-------- --------
131,978 133,243
Less-accumulated depreciation 82,202 82,470
-------- --------
49,776 50,773
Goodwill, net 9,032 9,211
Other assets 33,081 33,680
-------- --------
$303,490 $300,074
======== ========
LIABILITIES AND SHAREOWNERS' EQUITY
Current Liabilities:
Notes payable and current
installments of long-term debt $ 3,631 $ 3,995
Accounts payable 46,837 44,532
Accrued expenses and income taxes 46,154 44,699
-------- --------
Total current liabilities 96,622 93,226
Long-term debt 71,812 72,067
Long-term liabilities 18,182 18,283
SHAREOWNERS' EQUITY:
Preferred stock, $1 par value;
authorized 1,000,000 shares -
Common stock:
Class A, par value $1; authorized 30,000,000
shares; issued and outstanding 12,909,538 shares
in 1998 and 12,821,867 shares in 1997 12,910 12,822
Class B, par value $1; authorized 2,000,000 shares;
issued and outstanding 512,156 shares in 1998
and 513,065 shares in 1997 512 513
Additional paid in capital 112,433 111,772
(Deficit) Earnings employed in business (8,707) (10,757)
Accumulated other comprehensive income 181 2,603
Treasury stock: 42,592 shares in 1998 and
in 1997 at cost (455) (455)
-------- --------
Total shareowners' equity 116,874 116,498
-------- --------
$303,490 $300,074
======== ========
</TABLE>
Page 3
<PAGE>
BROWN & SHARPE MANUFACTURING COMPANY
------------------------------------
CONSOLIDATED STATEMENT OF CASH FLOWS
------------------------------------
(Dollars in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
For the Three-Months Ended Mar. 31,
-----------------------------------
1998 1997
---- ----
<S> <C> <C>
CASH PROVIDED BY (USED IN) OPERATIONS:
Net income $ 2,050 $ 757
Adjustment for Noncash Items:
Depreciation and amortization 3,484 2,475
Unfunded pension 89 100
Deferred compensation - 15
Termination indemnities 132 708
Changes in Working Capital:
(Increase) Decrease in accounts receivable (1,865) 11,793
Increase in inventories (2,889) (11,190)
Decrease in prepaid expenses
and other current assets 112 1,253
Increase (Decrease) in accounts payable
and accrued expenses 5,351 (1,679)
------- --------
Net Cash Provided by Operations 6,464 4,232
------- --------
INVESTMENT TRANSACTIONS:
Capital expenditures (3,026) (1,753)
Sale of an investment 891 -
Investment in other assets (752) 2,292
------- --------
Cash (Used in) Investment Transactions (2,887) 539
------- --------
FINANCING TRANSACTIONS:
Increase in short-term debt 257 1,239
Principal payments of long-term debt (378) (1,409)
Other financing activities 703 70
------- --------
Cash Provided by (Used in) Financing Transactions 582 (100)
------- --------
EFFECT OF EXCHANGE RATE CHANGES ON CASH (190) (1,145)
------- --------
CASH AND CASH EQUIVALENTS:
Increase during the period 3,969 3,526
Beginning balance 20,458 20,158
------- --------
Ending balance $24,427 $ 23,684
======= ========
SUPPLEMENTARY CASH FLOW INFORMATION:
Interest paid $ 338 $ 821
======= ========
Taxes paid $ 287 $ 62
======= ========
</TABLE>
* The accompanying notes are an integral part of the financial statements.
Page 4
<PAGE>
BROWN & SHARPE MANUFACTURING COMPANY
------------------------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
(Dollars in Thousands)
1. The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and
Article 10 of Regulations 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 of normal recurring accruals)
considered necessary for a fair presentation have been included. Operating
results for the quarter ended March 31, 1998 are not necessarily indicative
of the results that may be expected for the year ended December 31, 1998.
For further information, refer to the consolidated financial statements and
footnotes thereto included in the Brown & Sharpe Manufacturing Company's
annual report on Form 10-K for the year ended December 31, 1997.
2. Cash and cash equivalents are comprised of cash-on-hand deposits in banks
and short-term marketable securities with a maturity at acquisition of
three months or less.
3. The composition of inventory is as follows:
<TABLE>
<CAPTION>
Mar. 31, 1998 Dec. 31, 1997
------------- -------------
<S> <C> <C>
Parts, raw materials, and supplies $31,344 $29,760
Work in process 18,264 17,341
Finished goods 24,956 26,329
------- -------
$74,564 $73,430
======= =======
</TABLE>
4. The composition of long-term liabilities is as follows:
<TABLE>
<CAPTION>
Mar. 31, 1998 Dec. 31, 1997
------------- -------------
<S> <C> <C>
Other long-term liabilities $ 2,283 $ 2,270
Deferred income taxes 2,069 2,001
Unfunded accrued pension cost 5,240 5,297
Termination indemnities 8,590 8,715
------- -------
$18,182 $18,283
======= =======
</TABLE>
5. Income taxes include provisions for federal, foreign and state income taxes
and are based on the Company's estimate of effective income tax rates for
the full year. The tax provision for the first three months of 1998 and
1997 is $613 and $190, respectively.
Page 5
<PAGE>
6. The following table sets forth the computation of basic and diluted
earnings per share:
<TABLE>
<CAPTION>
1998 1997
------- -------
<S> <C> <C>
Numerator:
Net income $ 2,050 $ 757
Denominator:
Denominator for basic earnings per share:
Weighted average shares 13,341 13,202
Effect of dilutive securities:
Employee stock options 149 251
------- -------
Denominator for diluted earnings per share:
Weighted average shares and
assumed conversions 13,490 13,453
======= =======
Basic Earnings Per Share $ .15 $ .06
======= =======
Diluted Earnings Per Share $ .15 $ .06
======= =======
</TABLE>
7. As of January 1, 1998, the Company adopted Statement 130, Reporting
Comprehensive Income. Statement 130 establishes new rules for the
reporting and display of comprehensive income and its components; however,
the adoption of this Statement had no impact on the Company's net income or
shareholders' equity. Statement 130 requires unrealized gains or losses on
the Company's foreign currency translation adjustments, which prior to
adoption were reported separately in shareholders' equity, to be included
in other comprehensive income. Prior year financial statements have been
reclassified to conform to the requirements of Statement 130.
Accumulated other comprehensive income, net of related tax, at March 31,
1998 and December 31, 1997 is composed of foreign currency translation
adjustments amounting to $181 and $2,603, respectively.
Components of comprehensive income (loss) are as follows:
<TABLE>
<CAPTION>
For the Quarter Ended Mar.31,
-------------------------------
1998 1997
-------------- ---------------
<S> <C> <C>
Net Income $ 2,050 $ 757
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments (2,422) (9,287)
------- -------
Comprehensive (loss) $ (372) $(8,530)
======= =======
</TABLE>
8. Labor Relations. The Company is involved in litigation which arose out of
a strike which began in October of 1981 by approximately 1,800 production
employees represented by the International Association of Machinists and
Aerospace Workers ("IAM") at the Company's Rhode Island operations. After
commencement of the strike, the IAM filed charges with the National Labor
Relations Board ("NLRB") alleging that the Company engaged in unfair labor
practices during contract negotiations that precipitated the strike. On
August 28, 1990, the NLRB dismissed the IAM's charges. The IAM appealed
the decision to the U.S. Court of Appeals for the District of Columbia
Circuit. On November 29, 1991, the Court accepted the legal reasoning
advanced by the NLRB and the Company in support of the NLRB's earlier
decision of dismissal, but ordered the NLRB to further clarify and support
its decision. The NLRB reaffirmed its original dismissal of the IAM's
charges, and the IAM appealed that decision. On April 7, 1995, the Court
vacated the NLRB's earlier decision favorable to the Company and remanded
the case to the
<PAGE>
NLRB for a decision on whether the charges should be dismissed or a trial
on the merits should proceed. On August 16, 1996, the NLRB issued a second
supplemental decision and order finding in favor of the Company and
dismissing the IAM complaint. Following an unsuccessful request for a re-
hearing and reconsideration of the NLRB's ruling, the IAM once again
appealed the NLRB's decision to the U.S. Court of Appeals. On December 12,
1997, the Court denied the IAM's petition for a review of the NLRB's
decision dismissing the charges against the Company. In March of 1998, the
IAM filed a petition for a writ of certiorari in the United States Supreme
Court requesting the Supreme Court to review and vacate the Appeals Court
decision and remand the case to the NLRB for further proceedings. The NLRB
and the Company as intervenor have filed their briefs in opposition to the
petition. Management continues to believe the possibility of an adverse
decision in this matter is remote. If, however, the case were ultimately
decided on the merits against the Company and the strike converted to an
unfair labor practice strike, the Company could be liable for back wages
for those striking employees, subject to mitigation for certain statutory
offsets, whose strike action is determined to be based on the unfair labor
practices.
Environmental. On March 1, 1995, the Company received a notice from the
State of New York asserting a claim against it, along with a group of
approximately ten other companies, to recover costs incurred by the New
York State Department of Environmental Conservation to clean up a waste
disposal site in Poughkeepsie, New York. The State has alleged that the
Company's former subsidiary, Standard Gage Company, Poughkeepsie, New York,
acquired in 1987 and merged with and into the Company in 1991, contributed
hazardous waste to the site for disposal and that the Company is a PRP as
the surviving corporation to the merger. The total claim asserted by the
State against all parties is approximately $500,000, with no volumetric
assignment of responsibility having yet been determined; however, the State
has expressed a willingness to settle its claim with all PRPs receiving the
notice. The Company is continuing efforts to settle this claim and believes
that any potential loss it might incur as a result of any involvement or
settlement at this site would not be material.
On April 20, 1998, the Company received a notice of responsibility letter
from the Rhode Island Department of Environmental Management informing it
that the Company is one of a group of at least twenty-five other companies
similarly notified that have responsibility under State environmental laws
and RIDEM regulations to perform investigation and remedial clean-up action
at the closed Sanitary Landfill site in Cranston, RI. The RIDEM has
indicated it believes the total cost of remediation of the Site to be in
the range of $3 to $4 million, and that there are numerous other
responsible parties who were not notified of their responsibility. The
Company is working with the notified group of responsible parties and the
State to determine its response action at the Site. At this time, the
Company does not believe it was a major contributor of industrial waste to
the site or that its potential liability at the site is material.
Product Liability and Other Litigation Incidental to the Business. The
Company is involved in a number of product liability claims and lawsuits by
plaintiffs seeking monetary damages for personal injury which arose out of
and were incidental to the sale of products manufactured by the Company in
its discontinued metal cutting machine tool and fluid power businesses and
certain other litigation and claims incidental to the conduct of its
business. The potential liability of the Company for these claims and suits
is adequately covered by insurance or reserves established for such
contingencies. The Company is contesting or defending these claims and
suits and management believes that the ultimate liability, if any,
resulting from these matters will not have a material effect on the
Company's financial position.
Page 7
<PAGE>
BROWN & SHARPE MANUFACTURING COMPANY
------------------------------------
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
- ------- OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
------------------------------------------------
RESULTS OF OPERATIONS
(Quarter Ended March 31, 1998 compared to Quarter Ended March 31, 1997)
Sales.
Sales for the first quarter of 1998 were $85.7 million compared with the first
quarter of 1997 or $70.8 million, which is 21.1% above the 1997 level. First
quarter sales for 1998 would have been $2.3 million higher than reported in
1998, if foreign denominated sales had been translated at 1997 foreign exchange
rates. The reduced U.S. Dollar value of 1998 foreign sales, which results from
translating the 1998 foreign denominated sales using lower exchange rates, is
due to the continued strength of the U.S. Dollar. When 1998 first quarter sales
are translated at the first quarter of 1997 exchange rates, the first quarter of
1998 sales amount to $88 million, a $17.2 million increase over 1997. The $17.2
million sales increase was caused by a $16.1 million increase in the Measuring
Systems Division ("MS") sales with the remaining $1.1 million increase divided
equally between Precision Measuring Instruments Division ("PMI") and Custom
Metrology Division("CM").
The $16.1 million increase in MS sales was primarily due to an approximate $5
million increase in the sales of the new Gage 2000/Derby and Chameleon measuring
system products, which were introduced in 1997, and an increase of approximately
$7.5 million sales of more fully configured horizontal arm machines. In
addition, 1998 MS sales increased approximately $2.3 million due to the
inclusion of the sales of Automation Software, Inc. ("ASI"), which had been
accounted for by the equity method in 1997 until the Company's acquisition of
the remaining 50% interest of ASI in the third quarter of 1997. The remaining
$2.3 million increase in 1998 was due to increased sales of various products
throughout the entire MS division.
Sales for PMI were up $0.6 million due to increased sales volume in Europe which
was partially offset by reduced volume in the United States. Sales for CM were
up $0.5 million due to increased sales volume of can gauging machines.
Earnings.
The Company's net income for the first quarter of 1998 was $2.1 million, which
compared with $0.8 million for the same period in 1997.
The Company had an operating profit of $4.2 million in the first quarter of 1998
compared to $2.1 million in 1997 for the same period. Gross profit for the
first quarter of 1998 was $28.2 million, or 32.9%, of sales. This compares
with a 1997 gross profit of $24.5 million, or 34.7% of sales. The $3.7 million
increase in 1998 gross profit comes primarily from MS. The 1.8% decrease in
gross margin is due to lower margins of 1.5% for MS, which is due to slightly
lower margins for more fully configured CMMs that was partially offset by
improved gross margins for the Gage/2000 and Chameleon measuring systems. In
addition, PMI's gross margin in 1998 was also 1.5% lower than 1997 due to
product mix. CM's gross margin in 1998 was also lower than 1997, bringing the
overall gross margin in 1998 to 32.9%.
Selling, general and administrative expenses ("SG&A") in the first quarter of
1998 were 24.8% of sales as compared to 28.1% for the period in 1997. SG&A
expenses were $1.4 million higher in 1998 due to the inclusion of Automation
Software, Inc., acquired in the third quarter of 1997, of approximately $0.9
million of SG&A and and increase in agents commissions of $0.5 million.
Other income (expense) is lower in the first quarter of 1998 by $0.4 million as
compared to the same period in 1997. This is due to a loss of $0.2 million on
the sale of shares of a public company which had
Page 8
<PAGE>
been acquired in 1997 for common stock of an investment in an unrelated business
which had been held for several years.
Results in the first quarter of 1998 included a $0.6 million tax provision as
compared to $0.2 million in the first quarter of 1997. The effective tax rate
in the first quarter of 1998 was 23% as compared to 20% in the same period in
1997. The increase is due primarily to a change in the tax law in a foreign
jurisdiction in 1998.
LIQUIDITY AND CAPITAL RESOURCES
Over the last several years, prior to the 1996 equity offering, the Company had
funded its working capital, capital expenditure, research and development and
other cash needs from operating cash flows, sales proceeds from discontinued
businesses, borrowings under short-term credit facilities, and an aggregate of
$33.5 million of term and mortgage indebtedness incurred in 1994. In October
1996, the Company completed a $48 million public equity offering of 4.4 million
new shares of common stock. In November 1997, the final phase of the planned
restructuring of the Company's balance sheet was completed when the Company
entered into two financing arrangements to refinance certain existing debt
obligations of about $45.0 million and provide additional financing for future
needs of the Company. One of the borrowings was a $50.0 million private
placement of senior notes with a 10 year maturity and an interest rate of 7.29%.
The other arrangement was a $30.0 million three year syndicated multi-currency
revolving credit facility with four banks. 65% of the shares of certain of the
Company's foreign subsidiaries are pledged as security under the 1997
financings.
$11.7 million of the private placement was used to repay a bridge loan incurred
two months earlier to pay a portion of the $25.0 million notes payable due
September 28, 1997, the balance of which was paid with internally generated
funds. $13.0 million of the private placement was used to retire the 9 1/4%
convertible subordinated debentures, and the remaining balance is cash available
for payment of the $6.8 million mortgage when it matures in 1999 and to fund
certain of the Company's development plans and for other general corporate
purposes. As of March 31, 1998, the Company has not borrowed any amount under
the revolving credit facility described above. At March 31, 1998, the Company's
outstanding indebtedness was $75.4 million (including the current portion) of
long-term debt. There was no short-term debt outstanding at March 31, 1998.
The Company's cash and cash equivalents at March 31, 1998 were $24.4 million.
At December 31, 1997, the annual maturities of the Company's long-term debt were
$4.0 million, $9.0 million, $3.8 million, $12.1 million, and $7.8 million for
1998, 1999, 2000, 2001, and 2002, respectively, and $39.4 million thereafter.
Management believes that the two 1997 financing arrangements and the 1996 public
equity offering and the further additional borrowing capacity the offering
allows along with the available existing short- and long-term borrowings, cash
on hand and future cash flow from operations will be sufficient to meet
foreseeable cash requirements of the Company for the next three to four years.
Significant acquisitions or strategic partnerings could, however, increase the
Company's capital requirements, and in such event the Company might seek to
raise additional debt or equity.
CASH FLOW. Net cash provided by operations in the first quarter of 1998 was
$6.5 million, as compared to net cash provided by operations of $4.2 million in
1997. For the quarter ended March 31, 1998, net income of $2.1 million
increased by depreciation and other non-cash items of $3.7 million, further was
increased by decreases in working capital of $0.7 million. For the quarter
ended March 31, 1997, net income of $0.8 million, increased by depreciation and
other non-cash items of $3.3 million was increased by decreases in working
capital of $0.1 million.
Net cash used in investment transactions in 1998 was $2.9 million as compared to
net cashed provided by investment transactions during 1997 of $0.5 million.
During the first quarter of 1998, investment transactions included capital
expenditures of $3.0 million. Also during the quarter, the Company sold an
Page 9
<PAGE>
investment for $0.9 million which was offset partially by investing in other
assets $0.8 million. During the first quarter of 1997, investment transactions
included capital expenditures of $1.8 million.
Cash provided by financing transactions was $0.6 million during the first
quarter of 1998 compared with $0.1 million used by financing transactions for
the same period in 1997. Financing transactions during 1998 consisted of an
increase of $0.3 million in short-term borrowings, offset by principal payments
of long-term debt of $0.4 million. Financing transactions during the same
period in 1997 consisted of a $1.2 million increase in short-terms borrowings,
offset by principal payments of $1.4 million of long-term debt.
WORKING CAPITAL. Working capital of $115.0 million at March 31, 1998 increased
from $113.2 million at December 31, 1997 principally due to an increase in cash
and a decrease in short-term debt partially offset by an increase of inventories
and receivables. Inventories increased to $74.6 million at March 31, 1998, an
increase of $1.2 million from the end of 1997, and accounts receivable increased
$0.3 million from December 31, 1997. In addition, total short- and long-term
borrowing of $75.4 million at March 31, 1998 compared to $76.1 million at
December 31, 1997.
PRODUCT DESIGN AND MANUFACTURING ENGINEERING. The Company invested $4.2
million, or 4.9% of sales, and $4.0 million, or 5.6% of sales, respectively, for
product design and manufacturing engineering for the first quarters of 1998 and
1997.
FORWARD-LOOKING INFORMATION
This section and other portions of this report include certain forward-looking
statements about the Company's sales, expenditures,and various risks and
uncertainties, including those set forth in "Risk Factors". Such statements are
subject to risks that could cause the actual results or needs to vary materially
from those currently anticipated by the Company. These risks are discussed in
"Risk Factors" in the Company's Report on Form 10-K for the year 1997.
Page 10
<PAGE>
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
- ------ --------------------------------
A. See Exhibit Index annexed.
B. No Form 8-K was filed during the quarter ended March 31, 1998.
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.
BROWN & SHARPE MANUFACTURING COMPANY
By: /s/ Charles A. Junkunc
------------------------------------------
Charles A. Junkunc
Vice President and Chief Financial Officer
(Principal Financial Officer)
May 13, 1998
Page 11
<PAGE>
BROWN & SHARPE MANUFACTURING COMPANY
------------------------------------
EXHIBIT INDEX
-------------
27. Financial Data Schedule.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> DEC-31-1997
<PERIOD-END> MAR-31-1998
<CASH> 24,427
<SECURITIES> 0
<RECEIVABLES> 109,257
<ALLOWANCES> 2,882
<INVENTORY> 74,564
<CURRENT-ASSETS> 6,235
<PP&E> 131,978
<DEPRECIATION> 82,202
<TOTAL-ASSETS> 303,490
<CURRENT-LIABILITIES> 96,623
<BONDS> 0
0
0
<COMMON> 13,422
<OTHER-SE> 103,452
<TOTAL-LIABILITY-AND-EQUITY> 303,490
<SALES> 85,323
<TOTAL-REVENUES> 85,323
<CGS> 0
<TOTAL-COSTS> 57,519
<OTHER-EXPENSES> 24,035
<LOSS-PROVISION> 38
<INTEREST-EXPENSE> 1,468
<INCOME-PRETAX> 2,663
<INCOME-TAX> 613
<INCOME-CONTINUING> 2,050
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,050
<EPS-PRIMARY> 0.15
<EPS-DILUTED> 0.15
</TABLE>
