<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant To Section 13 or 15 (d)
of the Securities Exchange Act of 1934
For the quarterly period ended March 31, 1998 Commission file number 1-5951
CMI CORPORATION
--------------------------------------------------------
(Exact name of registrant as specified in its charter)
Oklahoma 73-0519810
- -------------------------- --------------------------------------
(State of Incorporation) (I.R.S. Employer Identification No.)
I-40 & Morgan Road, P.O. Box 1985
Oklahoma City, Oklahoma 73101
------------------------------------------ ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (405) 787-6020
--------------
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.
Voting Class A Common Stock Par Value $.10
and Voting Common Stock Par Value $.10 21,500,645
- ------------------------------------------ -------------------------------
(Title of each class) (Outstanding at May 13, 1998)
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<PAGE>
CMI CORPORATION
Index
Page
----
PART I. Financial Information
Condensed Consolidated Balance Sheets -
March 31, 1998 (Unaudited), December 31, 1997
and March 31, 1997 (Unaudited) 3
Condensed Consolidated Statements of Operations -
Three Months Ended March 31, 1998 and 1997 (Unaudited) 4
Condensed Consolidated Statements of Changes in Common
Stock and Other Capital -
Three Months Ended March 31, 1998 (Unaudited), and the
Years Ended December 31, 1997 and December 31, 1996 5
Consolidated Statements of Cash Flows -
Three Months Ended March 31, 1998 and 1997 (Unaudited) 6
Notes to Condensed Consolidated Financial Statements 7
Management's Discussion and Analysis of
Financial Condition and Results of Operations 10
PART II. Other Information
Item 1. Legal Proceedings 12
Item 2. Changes in Securities 12
Item 3. Defaults Upon Senior Securities 12
Item 4. Submission of Matters to a Vote of 13
Security Holders
Item 5. Other Information 13
Item 6. Exhibits and Reports on Form 8-K 13
Signatures 13
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<PAGE>
PART I - FINANCIAL INFORMATION
CMI CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
March 31 December 31 March 31
1998 1997 1997
(Unaudited) * (Unaudited)
----------- ----------- -----------
Current assets:
Cash & cash equivalents $ 9,242 7,131 10,123
Receivables, net 28,950 26,917 23,472
Inventories
Finished equipment 30,762 28,618 26,766
Work-in-process 10,754 14,910 10,505
Raw materials & parts 39,756 25,143 22,211
-------- ------- -------
Total inventories 81,272 68,671 59,482
Other current assets 695 579 271
Deferred tax asset 5,633 5,300 5,879
-------- ------- -------
Total current assets 125,792 108,598 99,227
Property, plant & equipment 58,358 56,739 48,009
Less accumulated depreciation 37,862 37,288 35,336
-------- ------- -------
Net property, plant & equipment 20,496 19,451 12,673
Long-term receivables 2,068 2,509 352
Other assets, principally goodwill 7,433 6,970 1,032
Deferred tax assets 6,900 6,900 9,100
-------- ------- -------
$162,689 144,428 122,384
======== ======= =======
Current liabilities:
Current maturities of long-term debt $ 208 259 204
Accounts payable 18,078 14,655 11,660
Accrued liabilities 13,423 9,647 8,503
-------- ------- -------
Total current liabilities 31,709 24,561 20,367
Long-term debt 61,269 49,274 34,051
Common stock & other capital:
Class A common stock & common stock 2,151 2,151 2,107
Other capital 67,560 68,442 65,859
-------- ------- -------
Total common stock & other capital 69,711 70,593 67,966
-------- ------- -------
$162,689 144,428 122,384
======== ======= =======
* Condensed from audited financial statements.
See notes to condensed consolidated financial statements.
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<PAGE>
CMI CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(dollars in thousands, except per share data)
Three Months Ended
March 31
------------------
1998 1997
---- ----
Net revenues $44,022 41,713
------- ------
Costs and expenses:
Cost of goods sold 34,283 31,314
Marketing and administrative 7,124 6,152
Engineering and product development 1,796 1,434
Product line relocation costs 940 -
------- ------
44,143 38,900
------- ------
Operating earnings (loss) (121) 2,813
------- ------
Other expense (income):
Interest expense 1,090 713
Interest income (202) (163)
Other, net (16) 3
------- ------
Earnings (loss) before income taxes (993) 2,260
Income tax expense (benefit) (326) 836
------- ------
Net earnings (loss) $ (667) 1,424
======= ======
Share data:
Net earnings (loss) applicable to common shares $ (667) 1,424
Weighted average outstanding common shares:
Basic 21,501 21,005
Diluted 21,501 21,152
Net earnings (loss) per average outstanding
common share:
Basic $ (.03) .07
======= ======
Diluted $ (.03) .07
======= ======
Dividends per common share $ .01 .01
======= ======
See notes to condensed consolidated financial statements.
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<PAGE>
CMI CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN COMMON STOCK
AND OTHER CAPITAL
(dollars in thousands)
<TABLE>
<CAPTION>
======================================================================================================
COMMON STOCK CLASS A COMMON STOCK ADDITIONAL
------------ -------------------- PAID-IN TREASURY RETAINED
SHARES AMOUNT SHARES AMOUNT CAPITAL STOCK EARNINGS
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance December 31,
1995 621 $ - 20,381,383 $2,038 $46,001 $ - $11,360
Net earnings - - - - - - 5,461
Dividends declared
and accretion on
preferred stock - - - - - - (272)
Dividends paid,
common stock - - - - - - (205)
Exercise of stock
options - - 86,000 9 111 - -
--- --- ---------- ------ ------- --- -------
Balance December 31,
1996 621 - 20,467,383 2,047 46,112 - 16,344
Net earnings - - - - - - 3,165
Purchase of treasury
stock - - - - - (32) -
Dividends paid,
common stock - - - - - - (851)
Common stock issued - - 75,000 8 367 - -
Exercise of stock
warrants - - 600,000 60 2,190 - -
Exercise of stock
options - - 364,000 36 1,147 - -
--- --- ---------- ------ ------- --- -------
Balance December 31,
1997 621 - 21,506,383 2,151 49,816 (32) 18,658
(The information which
follows is unaudited)
Net Loss - - - - - - (667)
Retired voting common
stock (19) - - - - - -
Retired treasury stock - - (6,340) - (32) 32 -
Dividends paid,
common stock - - - - - - (215)
--- --- ---------- ------ ------- --- -------
Balance March 31, 1998
(Unaudited) 602 $ - 21,500,043 $2,151 $49,784 $ - $17,776
=== === ========== ====== ======= === =======
</TABLE>
See notes to condensed consolidated financial statements.
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<PAGE>
CMI CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(dollars in thousands)
Three Months Ended
March 31
------------------
1998 1997
---- ----
OPERATING ACTIVITIES
Net earnings (loss) $ (667) 1,424
Adjustments to reconcile net earnings (loss) to net
cash provided by (used in) operating activities:
Depreciation 617 614
Amortization 75 12
Loss (gain) on sale of assets (15) 4
Change in assets and liabilities:
Receivables (2,033) (5,615)
Inventories (12,601) (785)
Other, current assets (116) (84)
Accounts payable 3,423 5,251
Accrued liabilities 3,776 320
Deferred tax asset (333) 821
Long-term receivables 441 -
Other, non-current assets, net of amortization
of goodwill (539) 10
-------- ------
Net cash and cash equivalents provided by (used in)
operating activities (7,972) 1,972
-------- ------
INVESTING ACTIVITIES
Proceeds from sale of assets 21 101
Capital expenditures (1,667) (1,045)
------ ------
Net cash and cash equivalents used in investing
activities (1,646) (944)
-------- ------
FINANCING ACTIVITIES
Payments on long-term debt (56) (104)
Net borrowings on revolving credit note 12,000 -
Proceeds from stock warrants exercised - 2,250
Payment of common stock dividends (215) (211)
-------- ------
Net cash and cash equivalents provided by
financing activities 11,729 1,935
-------- ------
Increase in cash and cash equivalents 2,111 2,963
Cash and cash equivalents at beginning of period 7,131 7,160
-------- ------
Cash and cash equivalents at end of period $ 9,242 10,123
======== ======
See notes to condensed consolidated financial statements.
-6 of 13-
<PAGE>
CMI CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(1) The interim condensed consolidated financial information has been
prepared in conformity with generally accepted accounting principles
applied, in all material respects, on a basis consistent with the
consolidated financial statements included in the annual report filed
with the Securities Exchange Commission for the preceding fiscal year.
The financial information as of March 31, 1998 and 1997 and for the
interim periods ended March 31, 1998 and 1997 included herein is
unaudited; however, such information reflects all adjustments consisting
of only normal recurring adjustments, which are, in the opinion of
management, necessary to a fair presentation of the results for the
interim periods.
(2) The results of operations for the three months ended March 31, 1998 are
not necessarily indicative of the results to be expected for the full
year. The Company is in a seasonal business, whereas normally at least
60 percent of the Company's revenues occur in the first six months of
each calendar year.
(3) In February 1997, the Financial Accounting Standards Board issued SFAS
No. 128, "Earnings Per Share." SFAS No. 128 revised the previous
calculation methods and presentations of earnings per share. The
statement requires that all prior-period earnings per share data be
restated. The Company adopted SFAS No. 128 in the fourth quarter of 1997
as required by the statement. The effect of adopting SFAS No. 128 did
not result in a change to the Company's 1997 first quarter earnings per
share data, as previously reported, except the previously reported
amounts for earnings per share were restated using basic earnings per
share and diluted earnings per share.
Under the provisions of SFAS No. 128, basic earnings per share is
computed by dividing net earnings (loss) applicable to common stock by
the weighted average number of common shares outstanding for the period.
Diluted earnings per share reflects the potential dilution that could
occur if the Company's outstanding stock options were exercised
(calculated using the treasury stock method).
Options to purchase 435,000 shares of common stock at $4.13 to $6.13
per share were outstanding during the three months ended March 31, 1998,
but were not included in the computation of diluted earnings per share
because the effect would be anti-dilutive. The options remained
outstanding at March 31, 1998.
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<PAGE>
The following table reconciles the net earnings (loss) applicable to
common shares and weighted average common shares outstanding used in the
calculation of basic and diluted earnings per common share (in thousands,
except per share data):
Three Months Ended
March 31
------------------
1998 1997
---- ----
Net earnings (loss) applicable to common shares,
basic and diluted $ (667) 1,424
======= ======
Weighted average number of common shares
outstanding - basic 21,501 21,005
Dilutive effect of potential common shares
issuable upon exercise of employee stock
options and stock purchase warrants - 147
------- ------
Weighted average number of common shares
outstanding - diluted 21,501 21,152
======= ======
Earnings (loss) per share:
Basic $ (.03) .07
======= ======
Diluted $ (.03) .07
======= ======
(4) Certain reclassifications have been made to the prior interim period to
conform to the 1998 presentation.
(5) There have been no material changes in related party transactions since
the annual report filed for the preceding fiscal year.
(6) Commitments and Contingencies
-----------------------------
The Company and its subsidiaries are parties to various leases relating
to plants, warehouses, office facilities, transportation vehicles, and
certain other equipment. Real estate taxes, insurance, and maintenance
expenses are normally obligations of the Company. It is expected that in
the normal course of business, the majority of the leases will be renewed
or replaced by other leases. Leases do not provide for dividend
restrictions, debt, or future leasing arrangements. All leasing
arrangements contain normal leasing terms without unusual purchase
options or escalation clauses.
At March 31, 1998, the Company was contingently liable as guarantor for
certain accounts receivable sold with recourse of approximately
$3,800,000 through September 2006.
-8 of 13-
<PAGE>
The accompanying March 31, 1998 and December 31, 1997 condensed
consolidated balance sheet reflect the preliminary allocation of the
purchase price for substantially all of the assets of Rexworks', Inc.
TRASHMASTER Landfill Compactor product line and three hard materials
grinding machines as consummated by the Company on December 17, 1997.
The purchase price allocation has not been finalized due to certain
pre-acquisition contingencies identified by the Company relating to
impairment of assets and contingent liabilities. Accordingly, goodwill
associated with the acquisition may increase in 1998.
(7) Litigation
----------
As previously disclosed, on November 22, 1995, certain attorneys,
previously engaged by the Company in connection with prior patent
litigation, filed suit against the Company in the Circuit Court of Cook
County, Illinois. On December 20, 1995, the case was removed to the
United States District Court for the Northern District of Illinois,
Eastern Division. The attorneys are seeking to recover approximately
$1.4 million of legal fees and costs alleged to be owing by the Company,
together with prejudgement and postjudgment interest and other costs.
There are numerous other claims and pending legal proceedings that
generally involve product liability and employment issues. These cases
are, in the opinion of management, ordinary routine matters incidental to
the normal business conducted by the Company. In the opinion of the
Company's management after consultation with outside legal counsel, the
ultimate disposition of such proceedings, including the case above, will
not have a materially adverse effect on the Company's consolidated
financial position, liquidity or future results of operations.
(8) Comprehensive Earnings
----------------------
The Company adopted the provisions of SFAS No. 130, "Reporting
Comprehensive Income," on January 1, 1998. SFAS No. 130 establishes
standards for reporting and display of "comprehensive income" and its
components in a set of financial statements. It requires that all items
that are required to be recognized under accounting standards as
components of comprehensive income be reported in a financial statement
that is displayed with the same prominence as other financial statements.
Through March 31, 1998, the Company does not have any items included in
comprehensive income that are not already included in the Company's
statement of operations.
-9 of 13-
<PAGE>
CMI CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
- ---------------------
The Company reported revenues of $44,022,000 for the three months ended March
31, 1998, compared to revenues of $41,713,000 for the three months ended March
31, 1997, an increase of 5.5%. The Company reported a net loss of $667,000, or
three cents per share, basic and diluted, for the three months ended March 31,
1998, compared to net earnings of $1,424,000, or seven cents per share, basic
and diluted, for the three months ended March 31, 1997.
The first quarter was both an exciting and disappointing time for the Company.
The Company's order levels were good but shipments were below plan. The
shortfall in shipments was primarily in road machines. Additionally,
manufacturing disruption and reduced efficiencies caused by the accelerated move
of the recently acquired compactor and grinder products from Milwaukee to
Oklahoma City impacted shipments. Included in the Company's first quarter
results was approximately $1.0 million of pretax costs associated with moving
the two product lines acquired from Rexworks, Inc. in December 1997. The factors
causing the delays in shipments of road machines were partially resolved in
April 1998 resulting in increased shipments.
The Company's factory modernization plan at Oklahoma City that has been
discussed in previous quarters is moving ahead, even though the long lead times
on many of the larger items is making it slower than originally expected.
Gross margin for the three months ended March 31, 1998 was 22.1% compared to
24.9% for the three months ended March 31, 1997. Contributing to the decrease
in margins was the disruptions caused by early relocation from Milwaukee. In
addition, the Company's product mix during the three months ended March 31, 1998
also negatively impacted margins since sales of asphalt plant products result in
lower margins than road machines.
Marketing and administrative expenses increased $972,000 for the three months
ended March 31, 1998. As a percentage of revenues, marketing and administrative
expenses increased to 16.2% for the three months ended March 31, 1998 from 14.9%
for the three months ended March 31, 1997. The increase as a percentage of
revenues is primarily due to the shortfall in shipments during the three months
ended March 31, 1998.
Engineering and product development expenses increased $362,000 for the three
months ended March 31, 1998. As a percentage of revenues engineering and
product development expenses increased to 4.1% for the three months ended March
31, 1998 from 3.5% for the three months ended March 31, 1997. The Company
continues to be committed to product development and enhancement.
Interest expense increased to $1,090,000 for the three months ended March 31,
1998, compared to $713,000 for the three months ended March 31, 1997. The
increase in interest expense is due to additional borrowings on the Company's
revolving line of credit.
The Company's effective tax rate was approximately 37% for both three month
periods ended March 31, 1998 and 1997. The Company's quarterly tax rates are
estimates of its expected annual effective federal and state income tax rates.
The combined effective income tax rate for 1997 was approximately 37 percent and
the Company expects a comparable annual effective rate in 1998.
-10 of 13-
<PAGE>
Liquidity and Capital Resources
- -------------------------------
Working capital at March 31, 1998 was $94,083,000 compared to $78,860,000 at
March 31, 1997, an increase of $15,223,000. The increase in working capital is
due to an increase in inventories of $21,790,000, and an increase in receivables
of $5,478,000; offset by, an increase in accounts payable of $6,418,000 and an
increase in accrued liabilities of $4,920,000. The current ratio was 3.97-to-1
at March 31, 1998 compared to 4.87-to-1 at March 31, 1997. The increase in
inventories primarily work-in-process and raw materials and purchased parts from
December 31, 1997 is largely the result of increased production and an increased
sales backlog.
Cash used in operating activities for the three months ended March 31, 1998 was
$7,972,000 compared to cash provided by operating activities of $1,972,000 for
the three months ended March 31, 1997. The significant change in cash from
operations is largely due to decreased earnings from operations and increased
inventories. Financing activities for the three months ended March 31, 1998
provided an additional $11,729,000, which included $12,000,000 of borrowings
from the Company's revolving line of credit, which was necessary due to the cash
used in operations.
Capital expenditures are budgeted at $11,000,000 for 1998 and will be financed
using internally generated funds and leasing programs. These capital
expenditures will be used to improve the Company's manufacturing and product
support efficiencies. Capital expenditures were $1,667,000 for the three months
ended March 31, 1998 compared to $1,045,000 for the three months ended March 31,
1997.
The Company's $30,000,000 unsecured senior notes mature from September 2000 to
September 2006. The Company's $40,000,000 unsecured revolving line of credit
matures September 2000. As of March 31, 1998, the Company had utilized
$27,000,000 of the unsecured revolving line of credit. Other long-term debts
have maturity dates through September 2010 and are expected to be paid or
refinanced when due.
For the period ended March 31, 1998, the Company was not in compliance with one
debt covenant related to the $30,000,000 senior notes. The covenant was the
"Fixed Charge Coverage Ratio" which requires a ratio of 2.00:1. The Company has
obtained an amendment allowing exclusion of the non-cash charges recorded during
the fourth quarter of 1997 and the relocation costs incurred during the quarter
ended March 31, 1998. After exclusion of these amounts, the ratio was 2.20:1.00
at March 31, 1998.
As of March 31, 1998, the Company also was not in compliance with one debt
covenant related to its $40,000,000 line of credit. The covenant was the
"Liabilities to Net Worth" which requires a ratio of 1.25:1. The Company has
obtained a waiver from the lender as of March 31, 1998. To allow for additional
acquisitions, the Company has negotiated with the lender to change the
"Liabilities to Net Worth" ratio to 1.75:1.
During the first quarter of 1998 the Company paid a quarterly cash dividend of
one cent per share on March 18, 1998, to holders of record at the close of
business on March 12, 1998. It is the Board of Directors present intention to
continue paying quarterly cash dividends.
-11 of 13-
<PAGE>
Income Taxes
- ------------
The benefits of future tax deductions and credits not utilized by the Company in
the past are reflected as an asset to the extent the Company assesses that
future operations will "more likely than not" be sufficient to realize such
benefits. For the period ended March 31, 1998, the Company has assessed its
past earnings history and trends, sales backlog, budgeted sales, and expiration
dates of future tax deductions and credits. As a result, the company has
determined it is "more likely than not" that the $12,533,000 of future tax
deductions and credits will be utilized. The ultimate realization of the
deferred tax assets will require aggregate taxable income of approximately $33
million to $38 million in future years.
Impact of Year 2000 Issue
- -------------------------
An issue exists for all companies that rely on computers as the Year 2000
approaches. The "Year 2000" problem is the result of past practices in the
computer industry of using two digits rather than four to identify the
applicable year. This practice will result in incorrect results when computers
perform arithmetic operations, comparisons or data field sorting involving years
later than 1999. In connection with the plant re-engineering program the
Company is currently implementing a new manufacturing and financial reporting
system which is Year 2000 compliant.
The Company anticipates that it will be able to test its entire system using its
internal programming staff and outside computer consultants and intends to make
any necessary modifications to prevent disruption to its operations. Future
costs in connection with any such modifications and completion of implementation
are not expected to be material.
Forward Looking Statements
- --------------------------
Statements of the Company or management's intentions, beliefs, anticipations,
expectations and similar expressions concerning future events contained in this
report constitute "forward looking statements" as defined in the Private
Securities Litigation Reform Act of 1995. As with any future event, there can
be no assurance that the events described in forward looking statements made in
this report will occur or that the results of future events will not vary
materially from those described in the forward looking statements made in this
report. Important factors that could cause the Company's actual performance and
operating results to differ materially from the forward looking statements
include, but are not limited to, highway funding, adverse weather conditions,
general economic conditions and political changes both domestically and
overseas.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
None.
ITEM 2. CHANGES IN SECURITIES.
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
None.
-12 of 13-
<PAGE>
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None.
ITEM 5. OTHER INFORMATION.
None.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits required by Item 601 of Regulation S-K are as follows:
Exhibit No.
-----------
27 Financial Data Schedule
(b) The Company did not file any report on a Form 8-K during the fiscal
quarter ended March 31, 1998.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: May 13, 1998 /s/ Jim D. Holland
----------------- ------------------------------------
Jim D. Holland
Senior Vice President,
Chief Financial Officer & Treasurer
-13 of 13-
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 9,242
<SECURITIES> 0
<RECEIVABLES> 28,950
<ALLOWANCES> 0
<INVENTORY> 81,272
<CURRENT-ASSETS> 125,792
<PP&E> 58,358
<DEPRECIATION> 37,862
<TOTAL-ASSETS> 162,689
<CURRENT-LIABILITIES> 31,709
<BONDS> 61,269
0
0
<COMMON> 2,151
<OTHER-SE> 67,560
<TOTAL-LIABILITY-AND-EQUITY> 162,689
<SALES> 44,022
<TOTAL-REVENUES> 44,022
<CGS> 34,283
<TOTAL-COSTS> 44,143
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,090
<INCOME-PRETAX> (993)
<INCOME-TAX> (326)
<INCOME-CONTINUING> (667)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (667)
<EPS-PRIMARY> ($0.03)
<EPS-DILUTED> ($0.03)
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 10,123
<SECURITIES> 0
<RECEIVABLES> 23,472
<ALLOWANCES> 0
<INVENTORY> 59,482
<CURRENT-ASSETS> 99,227
<PP&E> 48,009
<DEPRECIATION> 35,336
<TOTAL-ASSETS> 122,384
<CURRENT-LIABILITIES> 20,367
<BONDS> 34,051
0
0
<COMMON> 2,107
<OTHER-SE> 65,859
<TOTAL-LIABILITY-AND-EQUITY> 122,381
<SALES> 41,713
<TOTAL-REVENUES> 41,713
<CGS> 31,314
<TOTAL-COSTS> 38,900
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 713
<INCOME-PRETAX> 2,260
<INCOME-TAX> 836
<INCOME-CONTINUING> 1,424
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,424
<EPS-PRIMARY> $0.07
<EPS-DILUTED> $0.07
</TABLE>
