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 Quarter ended Commission file number
April 3, 1999 1-3246
BELL & HOWELL COMPANY
(Exact Name of Registrant as Specified in its Charter)
Delaware 36-3580106
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
5215 Old Orchard Road, Skokie, Illinois 60077-1076
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (847) 470-7100
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 the Registrant's Common Stock, $.001
par value, outstanding as of May 5, 1999 was 23,565,105.
<PAGE>
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION PAGE
Item 1. Financial Statements
Consolidated Statements of Operations for
the Thirteen Weeks Ended April 3, 1999 and
April 4, 1998 .......................................... 1
Consolidated Balance Sheets - Assets at
April 3, 1999 and January 2, 1999 ...................... 2
Consolidated Balance Sheets - Liabilities
and Shareholders' Equity at April 3, 1999 and
January 2, 1999 ........................................ 3
Consolidated Statements of Cash Flows for
the Thirteen Weeks Ended April 3, 1999 and
April 4, 1998 .......................................... 4
Notes to the Consolidated Financial
Statements ............................................. 5
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations ............................................... 8
PART II. OTHER INFORMATION
Item 1. Legal Proceedings .......................................... 13
Item 6. Exhibits and Reports on Form 8-K ........................... 13
SIGNATURE PAGE ........................................................ 14
<PAGE>
<TABLE>
Bell & Howell Company and Subsidiaries
Consolidated Statements of Operations
(Dollars and shares in thousands, except per share data)
(Unaudited)
<CAPTION>
Thirteen Weeks Ended
--------------------------
April 3, April 4,
1999 1998
--------- ---------
<S> <C> <C>
Net sales $ 216,544 $ 201,374
Operating costs and expenses:
Cost of sales 135,901 123,807
Research and development 8,619 9,160
Selling and administrative 57,073 55,741
-------- --------
Total operating costs and expenses 201,593 188,708
Operating income 14,951 12,666
Net interest expense:
Interest income (6,695) (6,294)
Interest expense 12,458 12,339
-------- --------
Net interest expense 5,763 6,045
Earnings from continuing operations
before income taxes 9,188 6,621
Income tax expense 3,675 2,648
-------- --------
Earnings from continuing operations 5,513 3,973
Earnings (loss) from discontinued operations (437) (726)
-------- --------
Net earnings $ 5,076 $ 3,247
======== ========
Net earnings per common share:
Basic:
Earnings from continuing operations $ 0.24 $ 0.17
Earnings (loss) from discontinued operations (0.02) (0.03)
-------- --------
Net earnings per common share $ 0.22 $ 0.14
======== ========
Diluted:
Earnings from continuing operations $ 0.23 $ 0.17
Earnings (loss) from discontinued operations (0.02) (0.03)
-------- --------
Net earnings per common share $ 0.21 $ 0.14
======== ========
Average number of common shares and equivalents outstanding:
Basic 23,375 23,422
Diluted 23,716 23,586
The accompanying Notes to the Consolidated Financial statements
are an integral part of these statements
</TABLE>
-1-
<PAGE>
<TABLE>
Bell & Howell Company and Subsidiaries
Consolidated Balance Sheets
(Dollars in thousands)
Assets
<CAPTION>
April 3, January 2,
1999 1999
--------- -----------
(Unaudited) (Audited)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 9,089 $ 18,074
Accounts receivable 199,924 233,667
Inventory 109,966 98,930
Other current assets 11,951 11,803
-------- --------
Total current assets 330,930 362,474
Property, plant and equipment, at cost 434,979 423,482
Accumulated depreciation (284,785) (275,277)
-------- --------
Net property, plant and equipment 150,194 148,205
Long-term receivables 60,981 66,746
Goodwill, net of accumulated amortization 218,201 208,385
Net assets of discontinued operations 12,166 9,230
Other assets 46,768 41,253
-------- --------
Total assets $ 819,240 $ 836,293
======== ========
The accompanying Notes to the Consolidated Financial Statements
are an integral part of these statements.
</TABLE>
-2-
<PAGE>
<TABLE>
Bell & Howell Company and Subsidiaries
Consolidated Balance Sheets
(Dollars and shares in thousands)
Liabilities and Shareholders' Equity
<CAPTION>
April 3, January 2,
1999 1999
------------ -------------
(Unaudited) (Audited)
<S> <C> <C>
Current liabilities:
Notes payable $ 8,767 $ 3,776
Current maturities of long-term debt 3,326 3,365
Accounts payable 74,928 79,553
Accrued expenses 59,330 83,854
Deferred income 174,785 190,008
-------- --------
Total current liabilities 321,136 360,556
Long-term liabilities:
Long-term debt 451,663 445,240
Other liabilities 66,131 59,719
-------- --------
Total long-term liabilities 517,794 504,959
Shareholders' equity:
Common Stock, $.001 par value, 23,788 shares issued
and 23,551 shares outstanding at April 3, 1999,
and 23,516 shares issued and 23,277 shares outstanding
at January 2, 1999 24 24
Capital surplus 146,307 140,819
Notes receivable from executives (1,540) (2,523)
Retained earnings (deficit) (156,121) (161,197)
Cumulative foreign exchange translation adjustments (2,545) (500)
Treasury stock (5,815) (5,845)
-------- --------
Total shareholders' equity (deficit) (19,690) (29,222)
-------- --------
Total liabilities and shareholders' equity $ 819,240 $ 836,293
======== ========
The accompanying Notes to the Consolidated Financial Statements
are an integral part of these statements.
</TABLE>
-3-
<PAGE>
<TABLE>
Bell & Howell Company and Subsidiaries
Consolidated Statements of Cash Flows
(Dollars in thousands)
(Unaudited)
<CAPTION>
Thirteen Weeks Ended
---------------------------
April 3, April 4,
1999 1998
-------- --------
<S> <C> <C>
Operating Activities:
Earnings from continuing operations $ 5,513 $ 3,973
Depreciation and amortization 14,311 13,826
Changes in operating assets and liabilities:
Accounts receivable 38,136 15,843
Inventory (12,623) (9,656)
Other current assets (233) (1,211)
Long-term receivables 5,765 16,731
Income taxes (2,963) 3,434
Accounts payable (6,879) (7,659)
Accrued expenses (19,406) (7,580)
Deferred income and other long-term liabilities (10,298) (6,894)
Other, net (6,324) (3,848)
------- -------
Net cash provided by continuing operations 4,999 16,959
Net cash provided (used) by discontinued operations (3,373) 7,265
------- -------
Net cash provided by operating activities 1,626 24,224
Investing activities:
Expenditures for property, plant and equipment (9,953) (8,214)
Acquisitions (18,308) (5,046)
------- -------
Net cash used by investing activities (28,261) (13,260)
Financing activities:
Proceeds from short-term debt 5,877 4,886
Repayment of short-term debt (272) (889)
Proceeds from long-term debt 13,330 12,068
Repayment of long-term debt (6,946) (36,270)
Proceeds from Common Stock, net 6,267 210
------- -------
Net cash provided (used) by financing activities 18,256 (19,995)
Effect of exchange rate changes on cash (606) (45)
------- -------
Increase (decrease) in cash and cash equivalents (8,985) (9,076)
Cash and cash equivalents, beginning of period 18,074 13,339
------- -------
Cash and cash equivalents, end of period $ 9,089 $ 4,263
======= =======
The accompanying Notes to the Consolidated Financial Statements
are an integral part of these statements.
</TABLE>
-4-
<PAGE>
Bell & Howell Company and Subsidiaries
Notes to the Consolidated Financial Statements
(Dollars and shares in thousands)
Note 1 - Basis of Presentation
The consolidated financial statements include the accounts
of Bell & Howell Company and its subsidiaries (collectively the
"Company") and have been prepared without independent audit,
except for the balance sheet data as of January 2, 1999.
In the opinion of the Company's management, the consolidated
financial statements include all adjustments necessary to present
fairly the information required to be set forth therein, and such
adjustments are of a normal and recurring nature. Certain
information and footnote disclosures normally included in
financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted.
The Company's management believes, however, that the disclosures
are adequate to make the information presented not misleading.
These financial statements should be read in conjunction with the
Consolidated Financial Statements and the notes thereto included
in Bell & Howell Company's annual report for the fiscal year
ended January 2, 1999.
Note 2 - Significant Accounting Policies
Inventory. The Company uses the last-in, first-out (LIFO)
method of valuing the majority of its domestic inventory. Use of
the LIFO method is predicated on a determination of inventory
quantities and costs at the end of each fiscal year, and
therefore interim determinations of LIFO inventory values and
results of operations are by necessity based on management's
estimates of expected year-end inventory quantities and costs.
The excess of replacement cost over the LIFO values of inventory
was $4,900 at April 3, 1999, and January 2, 1999. The components
of inventory are shown in the table below as of the dates
indicated:
<TABLE>
<CAPTION>
April 3, January 2,
1999 1999
--------- ---------
<S> <C> <C>
Finished products $ 61,187 $ 57,343
Products in process and materials 48,779 41,587
------- -------
Total inventory $109,966 $ 98,930
======= =======
</TABLE>
-5-
<PAGE>
Net Earnings per Common Share. Basic net earnings per
common share is computed by dividing net earnings by the weighted
average number of common shares outstanding during the period.
Diluted net earnings per common share is computed by dividing net
earnings by the weighted average number of common shares
outstanding during the period, and assumes the issuance of
additional common shares for all dilutive stock options
outstanding during the period. A reconciliation of the weighted
average number of common shares and equivalents outstanding in
the calculation of basic and diluted earnings per share is shown
in the table below for the periods indicated:
<TABLE>
<CAPTION>
Thirteen Weeks Ended
------------------------
April 3, April 4,
1999 1998
------- -------
<S> <C> <C>
Basic 23,375 23,422
Dilutive effect of stock options 341 164
------ ------
Diluted 23,716 23,586
====== ======
</TABLE>
Note 3 - Business Segments
The Company, which is organized on the basis of products and
services, has three reportable business segments, Information
Access, Mail and Messaging Technologies and Imaging. The
accounting policies for each of the segments are described in the
Company's annual report for the fiscal year ended January 2, 1999.
Sales and earnings information for the Company's reportable
business segments is shown in the table below for the periods
indicated:
<TABLE>
<CAPTION>
Earnings from Continuing
Net Sales Operations Before Income Taxes
------------------------- ------------------------------
Thirteen Weeks Ended Thirteen Weeks Ended
------------------------- ------------------------------
April 3, April 4, April 3, April 4,
Business Segments 1999 1998 1999 1998
- ----------------- --------- --------- --------- ---------
<S> <C> <C> <C> <C>
Information Access .............. $ 80,019 $ 73,041 $ 8,915 $ 9,830
Mail and Messaging Technologies . 94,457 87,982 6,889 4,913
Imaging ......................... 42,068 40,351 3,074 1,624
-------- -------- -------- --------
Total ......................... 216,544 201,374 18,878 16,367
Corporate expenses .............. (3,927) (3,701)
Interest expense, net ........... (5,763) (6,045)
-------- -------- -------- --------
Consolidated .................... $ 216,544 $ 201,374 $ 9,188 $ 6,621
======== ======== ======== ========
</TABLE>
-6-
<PAGE>
Note 4 - Discontinued Operations
In December 1997, the Company adopted a plan to divest its
postal contracting business, and accordingly the operating
results and net assets of this business have been segregated from
continuing operations. The Consolidated Statements of Operations
separately reflect the earnings (loss) of the postal contracting
business, which includes an allocation of the Company's interest
expense. The Consolidated Balance Sheets separately reflect the
net assets of the postal contracting business as a non-current
asset.
Results from discontinued operations are shown in the table
below for the periods indicated:
<TABLE>
<CAPTION>
Thirteen Weeks Ended
----------------------
April 3, April 4,
1999 1998
-------- --------
<S> <C> <C>
Net sales $ 6,652 $ 3,325
Earnings (loss) before income taxes (728) (1,210)
Income tax expense (benefit) (291) (484)
------- -------
Earnings (loss) from
discontinued operations $ (437) $ (726)
======= =======
</TABLE>
Note 5 - Comprehensive Income
The components of comprehensive income for the Company
include net earnings and unrealized gains and losses relating to
the translation of foreign currency balance sheets.
Comprehensive income is shown in the table below for the periods
indicated:
<TABLE>
<CAPTION>
Thirteen Weeks Ended
----------------------
April 3, April 4,
1999 1998
-------- --------
<S> <C> <C>
Earnings from continuing operations $ 5,513 $ 3,973
Earnings (loss) from discontinued operations (437) (726)
------- -------
Net earnings 5,076 3,247
Other comprehensive income (loss):
Foreign currency translation adjustments (2,045) (464)
------- -------
Comprehensive income $ 3,031 $ 2,783
======= =======
</TABLE>
The foreign currency translation adjustments do not impact
the Company's income tax expense.
-7-
<PAGE>
Item 2.
Management's Discussion and Analysis of
Financial Condition and Results of Operations
This section should be read in conjunction with the
Consolidated Financial Statements of Bell & Howell Company and
Subsidiaries (collectively the "Company") and the notes thereto
included in the annual report for the year ended January 2, 1999.
Results of Operations
First Quarter 1999 Compared to First Quarter 1998
The Company's net sales increased $15.2 million, or 8%, to
$216.5 million in the first quarter of 1999. The increase
primarily resulted from strong sales growth in the Mail and
Messaging Technologies segment as well as the Publishing Services
business within the Information Access segment.
Information Access net sales increased $7.0 million, or 10%,
to $80.0 million in the first quarter of 1999. Within the
Information Access segment (comprised of the Information and
Learning business and the Publishing Services business), the
Company develops and markets information services and systems
that are focused on the needs of its customers in select vertical
niches, including libraries of all kinds (college and university,
elementary and secondary schools, as well as public) and
transportation and vehicle dealers. Net sales of the Information
and Learning business of $43.4 million in 1999 are virtually
constant with the prior year, as a growing electronic
subscription base was offset by slightly lower sales of the more
traditional microfilm and paper products. The electronic
subscription base continued to reflect strong sales of ProQuest
DirectTM (the Company's internet-based product offering), which
was partially offset by lower CD-ROM/tape subscriptions, as
customers migrate to the on-line delivery of information via
the internet. Net sales of the Publishing Services business
increased $7.2 million, or 24%, to $36.6 million due to
increased sales of electronic parts catalogs and ancillary products to
automotive dealerships, increased sales of dealer management
systems to powersports dealerships as well as the acquisition of
Alison Associates, Inc., which provides performance database
products to automotive and powersports manufacturers/dealers. In
addition to new system placements, the Company continued to
experience strong sales of additional software applications
and high contract renewal rates related to previously placed systems.
-8-
<PAGE>
Mail and Messaging Technologies net sales increased $6.5
million, or 7%, to $94.5 million in the first quarter of 1999.
Within the Mail and Messaging Technology segment, the Company
develops and markets a complete range of high volume mail
processing systems and services which increasingly utilize
proprietary software to expand the capabilities and improve the
efficiency and effectiveness of customers' mailing operations.
The higher sales in 1999 resulted from increased shipments of
high volume inserting equipment as well as increased service and
software revenues. Service and software revenues (which are
primarily annuity-based and represent 54% of segment sales)
increased $6.8 million, or 15%, to $51.2 million due to both an
expanded customer base and increased pricing.
Imaging net sales increased $1.7 million, or 4%, to $42.1
million in the first quarter of 1999. Within the Imaging
segment, the Company develops and markets imaging systems and
components that enable its customers to effectively file and
access their documents and records, with a focus on financial
institutions, governmental agencies, and other paper intensive
industries. The increased sales in 1999 resulted from increased
electronic service revenues and greater shipments of production
scanners which were partially offset by lower sales of
micrographic equipment. Service revenues (which are primarily
annuity-based and represent 38% of segment sales) increased $2.7
million, or 20%, to $16.1 million due to both an expanded
customer base and increased pricing.
The Company's cost of sales increased $12.1 million, or 10%,
to $135.9 million in the first quarter of 1999, with the gross
profit (net sales less cost of sales) percentage decreasing by
1.3 percentage points to 37.2%. The lower gross profit
percentage in 1999 resulted from a less profitable product mix,
which was partially offset by increased pricing and improved
manufacturing/service productivity.
Research and development expense of $8.6 million in the
first quarter of 1999 was slightly below the prior year level as
the Company continued to invest significantly in new product
offerings. The Company continually seeks to take advantage of
new product/technology opportunities (with an increased emphasis
on internet capabilities and software solutions) in each of its
businesses. The Company's research and development expenditures
include expenses primarily for database and software development,
information delivery systems and production scanners for the
Information Access and Imaging segments, as well as for new
software driven mail processing systems and stand-alone software
solutions for the Mail and Messaging Technologies segment.
-9-
<PAGE>
Selling and administrative expense increased $1.3 million,
or 2%, to $57.1 million in the first quarter of 1999 reflecting
the Company's increased investment in sales and marketing
resources (which reflects an increase in the sales force in the
Information and Learning business to capitalize on the sales
growth opportunities of internet-based products) as well as
increased distribution costs associated with the higher sales
volumes.
Operating income increased $2.3 million, or 18%, to $15.0
million, while EBITDA (defined as operating income plus
depreciation and amortization) increased $2.8 million, or 11%,
to $29.2 million in the first quarter of 1999.
Information Access operating income decreased $.9 million,
or 9%, to $8.9 million in the first quarter of 1999, as the
benefit of the higher sales volume was more than offset by the
impact of significant investments related to ProQuest DirectTM
for both new product development costs and to provide additional
data center capacity to accommodate future sales growth
opportunities. Information Access EBITDA decreased $.5 million,
or 2%, to $19.5 million in the first quarter of 1999.
Mail and Messaging Technologies operating income increased
$2.0 million, or 40%, to $6.9 million in the first quarter of
1999, as the increased sales, an improved gross profit percentage
(reflecting a more profitable product mix with an emphasis on
software and service), and leveraged operating expenses drove the
profitability improvement. Mail and Messaging Technologies
EBITDA increased $2.1 million, or 31%, to $9.0 million in the
first quarter of 1999.
Imaging operating income increased $1.5 million, or 89%,
to $3.1 million in the first quarter of 1999, reflecting the
increased sales and leveraged operating costs and expenses, as a
greater percentage of segment revenues related to the more
profitable service component of the business. Imaging EBITDA
increased $1.3 million, or 43%, to $4.4 million in the first
quarter of 1999.
Corporate expenses increased $.2 million, or 6%, to $3.9
million in the first quarter of 1999 as productivity improvements
were more than offset by inflationary/other cost increases.
Net interest expense decreased $.3 million, or 5%, to $5.8
million in the first quarter of 1999, primarily reflecting lower
borrowings as the excess of the Company's operating cash flows
over capital expenditure/acquisition costs have been used to
reduce debt outstanding. Net interest income of Bell & Howell
Financial Services Company, the Company's financing subsidiary
remained constant at $2.7 million in the first quarter of 1999.
-10-
<PAGE>
Income tax expense increased in the first quarter of 1999 as
a result of a higher level of pretax profit, with the income tax
rate remaining constant with the prior year.
As a result of changing market and competitive dynamics
within global government postal markets, as well as a review
of its future strategic focus, in December 1997 the Company adopted
a plan to divest its postal contracting business. Accordingly,
the operating results of this business have been segregated from
the Company's continuing operations, and are separately reported
as a discontinued operation in the financial statements. Net
sales for this business increased $3.3 million to $6.7 million in
the first quarter of 1999, with a net loss of $.4 million in the
first quarter of 1999 versus a net loss of $.7 million in the
prior year.
Cash provided by continuing operations was $5.0 million in
the first quarter of 1999, versus $17.0 million in the prior
year. Although EBITDA increased $2.8 million over the prior
year, such increase was more than offset by increased working
capital requirements and increased income tax payments related to
the Company's improved profitability. Cash used by discontinued
operations was $3.4 million in the first quarter of 1999 versus
cash provided by discontinued operations of $7.3 million in the
prior year, as significant collections from international postal
contracts were received in 1998. As a result of investments in
capital expenditures/acquisitions and seasonal working capital
requirements, debt (net of cash and cash equivalents) increased
by $20.4 million to $454.7 million in the first quarter of 1999.
Impact of the Year 2000
Over the past few years, the Company has been assessing the
impact on its products and computer systems of Year 2000 (Y2K)
related issues. The Company's Y2K compliance plans include:
inventorying affected technology and assessing the impact of
the Y2K issue; developing resultant solution plans;
modification/replacement and testing/certification of systems
and software; and developing contingency plans as appropriate.
The Company relies on third party suppliers for systems,
products and services. The Company has a comprehensive supplier
compliance program in place, as the Company could be adversely
impacted if these suppliers do not make the necessary changes to
their own systems/products in a timely manner.
The Company has identified its products that are not currently
Y2K compliant, and which will not be modified or upgraded to become
Y2K compliant. These products and services are at the end of their
natural product life cycle and for most of the affected customers,
newer Y2K compliant replacement products and services have been
-11-
<PAGE>
offered. For these products and services, the Company has provided
notice to customers of its intent not to provide ongoing support of
such products or services after 1999.
The Company has also identified its products and services
that will be modified or upgraded to become Y2K compliant. The
Company has developed plans to provide its customers with such
modifications and upgrades. The completion of these plans could
be adversely affected if these customers do not provide the
Company with sufficient timeframes in which to make such
modifications and upgrades.
A substantial portion of the Company's Y2K initiatives have
been completed to date, with remaining project work expected to
be completed in 1999. Based on such initiatives, and assuming
that remaining issues can be addressed as planned, management
believes that future costs relating to Bell & Howell's Y2K issue
will not have a material adverse impact upon the consolidated
operations or financial condition of the Company. However,
preoccupation with Y2K initiatives in the market in general could
potentially impact customer purchase/installation decisions,
which could adversely affect the Company's sales in fiscal 1999.
Recently Issued Financial Accounting Standards
In June 1998, the Financial Accounting Standards Board
issued Statement of Financial Accounting Standards No. 133,
Accounting for Derivative Instruments and Hedging Activities.
This statement provides a comprehensive standard for the
recognition and measurement of derivatives and hedging
activities. The Company is currently evaluating the impact of
this standard on its financial statements and is required to
adopt this new standard beginning with its fiscal 2000 financial
statements.
-12-
<PAGE>
Part II. Other Information
Item 1. Legal Proceedings.
The Company is involved in various legal proceedings
incidental to its business. Management believes that the outcome
of such proceedings will not have a material adverse effect upon
the consolidated operations or financial condition of the Company.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits:
Index Number Description
None
(b) Reports on Form 8-K.
No reports on Form 8-K were filed for the thirteen weeks
ended April 3, 1999.
-13-
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
Date: May 11, 1999 BELL & HOWELL COMPANY
/s/ James P. Roemer
James P. Roemer
Chairman of the Board
of Directors, President and
Chief Executive Officer
/s/Nils A. Johansson
Nils A. Johansson
Executive Vice President,
Chief Financial Officer
and Director
-14-
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S BALANCE SHEET AND STATEMENT OF OPERATIONS AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-01-2000
<PERIOD-END> APR-03-1999
<CASH> 9089
<SECURITIES> 0
<RECEIVABLES> 214050
<ALLOWANCES> 14126
<INVENTORY> 109966
<CURRENT-ASSETS> 330930
<PP&E> 434979
<DEPRECIATION> 284785
<TOTAL-ASSETS> 819240
<CURRENT-LIABILITIES> 321136
<BONDS> 451663
0
0
<COMMON> 24
<OTHER-SE> (19714)
<TOTAL-LIABILITY-AND-EQUITY> 819240
<SALES> 216544
<TOTAL-REVENUES> 216544
<CGS> 135901
<TOTAL-COSTS> 201593
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 5763
<INCOME-PRETAX> 9188
<INCOME-TAX> 3675
<INCOME-CONTINUING> 5513
<DISCONTINUED> (437)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5076
<EPS-PRIMARY> .22
<EPS-DILUTED> .21
</TABLE>
