<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15 (d) of The Securities
Exchange Act of 1934
For the fiscal quarter ended June 3, 1995
-----------------------------------------
Commission File Number 0-4173
-----------------------------
DMI FURNITURE, INC.
-------------------
(Exact name of registrant as specified in its charter)
DELAWARE 41-0678467
-------- ----------
(State of incorporation) (IRS employer ID number)
One Oxmoor Place, 101 Bullitt Lane, Louisville, Kentucky 40222
--------------------------------------------------------------
(Address of principal executive offices)
Registrant's telephone number with area code: (502) 426-4351
-------------
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 Registrant's classes of
Common Stock as of the last practicable date.
Class - Common Stock, Par Value $.10 per Share
- -----
Outstanding at June 3, 1995 - 2,970,026
- --------------------------
<PAGE>
INDEX
Part I. Financial Information Page
Consolidated Balance Sheets - June 3, 1995
and August 27, 1994 3, 4
Consolidated Statements of Income - Three and Nine Months
Ended June 3, 1995 and May 28, 1994 5
Consolidated Statements of Cash Flows - Nine
Months Ended June 3, 1995 and
May 28, 1994 6, 7
Notes to Consolidated Financial Statements 8-10
Management's Discussion and Analysis
of Financial Condition and Results
of Operations 11-13
Part II.Other Information 14
Index to Exhibits
11. Calculations of Earnings Per Share 15
27. Financial Data Schedule 16
<PAGE>
PART I. FINANCIAL INFORMATION
DMI FURNITURE, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
<TABLE>
<CAPTION>
Unaudited
-------
June 3, Aug.27,
ASSETS 1995 1994
------ ------- -------
<S> <C> <C>
Current assets:
Cash $238 $202
Restricted cash for debt payments 2 244
Accounts receivable - net 9,401 9,873
Inventories (Note 4) 15,378 14,592
Other current assets 448 300
Current portion of deferred income taxes (Note 2) 936 1,310
------- -------
Total current assets 26,403 26,521
Notes receivable - 107
Property, plant and equipment - at cost 21,389 20,923
Less accumulated depreciation 9,302 8,553
------- -------
Net property, plant and equipment 12,087 12,370
Other assets:
Intangible pension asset 532 532
Other 383 511
------- -------
915 1,043
------- -------
$39,405 $40,041
------- -------
------- -------
</TABLE>
See accompanying notes.
3
<PAGE>
DMI FURNITURE, INC.
CONSOLIDATED BALANCE SHEETS
(Continued)
(Amounts in thousands)
<TABLE>
<CAPTION>
Unaudited
-------
June 3, Aug.27,
LIABILITIES AND STOCKHOLDERS' EQUITY 1995 1994
- ------------------------------------ ------- -------
<S> <C> <C>
Current liabilities:
Trade accounts payable $4,722 $5,393
Accrued liabilities 1,834 2,206
Accrued dividends on preferred
stock (Note 7) 462 505
Long-term debt due within one year 988 959
------- -------
Total current liabilities 8,006 9,063
Long-term liabilities:
Long-term debt 19,396 19,393
Accrued pension costs 927 994
Deferred compensation 479 534
Deferred income taxes (Note 2) 40 40
------- -------
20,842 20,961
Stockholders' equity:
Series C convertible preferred stock,
$2 par value, 2,020,000 authorized
and outstanding 4,040 4,040
Common stock 296 296
Additional paid-in capital 15,096 15,006
Retained deficit (8,829) (9,279)
Minimum pension liability (46) (46)
------- -------
Total stockholders' equity 10,557 10,017
------- -------
$39,405 $40,041
------- -------
------- -------
</TABLE>
See accompanying notes.
4
<PAGE>
DMI FURNITURE, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
---------------------- ----------------------
June 3, May 28, June 3, May 28,
1995 1994 1995 1994
------- ------- ------- -------
<S> <C> <C> <C> <C>
Net sales (Note 1) $14,775 $14,398 $50,949 $45,577
Cost of sales 12,246 11,969 41,912 37,207
------- ------- ------- -------
Gross profit 2,529 2,429 9,037 8,370
Selling, general and
administrative expenses 2,029 1,946 6,503 6,104
------- ------- ------- -------
Operating profit 500 483 2,534 2,266
Interest expense (net) (470) (331) (1,407) (932)
------- ------- ------- -------
Income before provision for income
taxes, cumulative effect of a change in
accounting principle and extraordinary item 30 152 1,127 1,334
Provision for income taxes (Note 2) (11) (46) (417) (497)
------- ------- ------- -------
Income before cumulative effect of a change
in accounting principle and extraordinary item 19 106 710 837
Cumulative effect of a change in
accounting for income taxes (Note 2) - - - 1,795
------- ------- ------- -------
Income before extraordinary item 19 106 710 2,632
Extraordinary item--extinguishment of debt net
of $22,000 tax benefit (Note 8) - (50) - (50)
------- ------- ------- -------
Net income $19 $56 $710 $2,582
------- ------- ------- -------
------- ------- ------- -------
Income per share before cumulative
effect of a change in accounting
principle and extraordinary item $.00 $.02 $.12 $.14
Cumulative effect per share of a
change in accounting for income
taxes (Note 2) - - - .31
Extraordinary item (Note 8) - (.01) - (.01)
------- ------- ------- -------
Earnings per common share (Note 3) $.00 $.01 $.12 $.44
------- ------- ------- -------
------- ------- ------- -------
</TABLE>
See accompanying notes.
5
<PAGE>
DMI FURNITURE, INC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
--------------------------------------
June 3, May 28,
1995 1994
------------ ------------
Cash flows from operating activities:
<S> <C> <C>
Net income $710 $2,582
Adjustments to reconcile net income to
net cash provided (used) by
operating activities:
Depreciation and amortization 749 597
Deferred income taxes (Note 2) 374 (1,398)
Pension costs (67) (5)
Deferred compensation (55) (47)
Changes in assets and liabilities:
Accounts receivable 472 (677)
Inventories (786) (1,577)
Other assets 79 (63)
Trade accounts payable (671) 1,943
Accrued liabilities (372) (134)
--------- ----------
Total adjustments (277) (1,361)
--------- ----------
Net cash provided by
operating activities 433 1,221
--------- ----------
Cash flows provided (used) by
investing activities:
Capital expenditures (Note 5) (466) (3,589)
Payments received on notes receivable 8 10
EDRB cash held in trust (Note 5) - (500)
--------- ----------
Cash used by investing
activities (458) (4,079)
--------- ----------
</TABLE>
See accompanying notes.
6
<PAGE>
DMI FURNITURE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(continued)
(Amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
-------------------------
June 3, May 28,
1995 1994
-------- ---------
<S> <C> <C>
Cash flows provided (used) by
financing activities:
Net borrowings under line-of-credit
agreement $873 $650
Payments on long term debt (841) (351)
Additions to long term debt (Note 5) - 3,420
Cash dividends on preferred stock (303) (303)
Proceeds from stock options exercised 90 149
--------- ----------
Cash provided (used) by
financing activities (181) 3,565
--------- ----------
Increase (decrease) in cash (206) 707
Cash- beginning of period 446 42
--------- ----------
Cash- end of period $240 $749
====== ======
Cash paid for:
Interest $1,377 $853
====== ======
Income taxes $59 $0
====== ======
</TABLE>
See accompanying notes.
7
<PAGE>
DMI FURNITURE, INC.
Notes to Consolidated Financial Statements
(1) FINANCIAL STATEMENTS AND ORGANIZATION
The consolidated financial statements include DMI Furniture, Inc. and its
wholly owned subsidiary, DMI Management, Inc. ("Company"). The financial
statements included herein at June 3, 1995 and for the three and nine months
ended June 3, 1995 and May 28, 1994 are unaudited but include all adjustments
which are, in the opinion of management, necessary to a fair presentation of the
results of operations and financial position for the periods covered herein.
These financial statements should be read in conjunction with the financial
statements and notes thereto included in the Company's latest annual report on
10-K.
The results of operations for the interim periods are not necessarily an
indication of the results to be expected for the full 1995 fiscal year. The
nine month period ended June 3, 1995 included forty weeks as compared to
thirty-nine weeks for the period ended May 28, 1994.
(2) INCOME TAXES
During the first quarter of fiscal 1994, the Company adopted Statement of
Financial Accounting Standard No. 109, Accounting for Income Taxes ("SFAS No.
109"). SFAS 109 requires recognition of deferred tax assets and liabilities for
the expected future tax consequences of events that have been included in the
financial statements or tax returns. Under this method, deferred tax assets and
liabilities are determined based on the difference between the financial
statement and tax bases of assets and liabilities using enacted tax rates in
effect for the year in which the differences are expected to reverse. In
accordance with this statement, the Company recognized deferred tax assets
reflecting the benefit expected to be realized from the utilization of net
operating loss carryforwards ("NOLs"), alternative minimum tax credits
carryforwards, and deductible temporary differences.
In adopting SFAS No. 109, as of August 29, 1993, the Company recorded
approximately $1,931,000 of deferred tax assets and $136,000 of deferred tax
liabilities, resulting in a net deferred tax asset of $1,795,000. Such amount
has been reflected during the first quarter of fiscal 1994 in the Consolidated
Statements of Income as the cumulative effect of an accounting change.
8
<PAGE>
Income tax expense consisted of the following (in thousands):
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
Jun. 3, May 28, Jun. 3, May 28,
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
Current $1 $4 $35 $87
Deferred 10 42 382 410
---- ---- ---- ----
Total $11 $46 $417 $497
---- ---- ---- ----
---- ---- ---- ----
</TABLE>
The deferred tax provision relates mainly to the utilization of the
Company's NOLs.
The provision for income taxes differs from that computed at the federal
statutory corporate tax rate as follows (in thousands):
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
Jun. 3, May 28, Jun. 3, May 28,
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
Tax at 34% statutory
rate $10 $46 $383 $448
State income taxes 1 0 34 49
---- ---- ---- ----
Income Taxes $11 $46 $417 $497
---- ---- ---- ----
---- ---- ---- ----
</TABLE>
(3) EARNINGS PER COMMON SHARE
Earnings per common share are based on the weighted average number of
common and common equivalent shares outstanding during the period, and assumes
the conversion of the Series C Preferred Stock into common stock.
(4) INVENTORIES
Inventories were comprised of the following at June 3, 1995 and August 27,
1994:
<TABLE>
<CAPTION>
June 3, 1995 August 27,1994
------------ --------------
<S> <C> <C>
Finished Products $7,750,000 $7,846,000
Work in Process 786,000 950,000
Raw Materials 6,842,000 5,796,000
----------- -----------
$15,378,000 $14,592,000
----------- -----------
----------- -----------
</TABLE>
9
<PAGE>
(5) ECONOMIC DEVELOPMENT REVENUE BOND FINANCING
On November 12, 1993, the Company completed a $3,420,000 City of
Huntingburg, Indiana Adjustable Rate Economic Development Revenue Bond Series
1993 financing through Bank One, Columbus, NA. The bonds mature annually over
ten years and are secured by an irrevocable letter of credit issued by Bank One,
Indianapolis, NA. The proceeds of the bond issue were used to finance the costs
of the acquisition, construction, and equipping of manufacturing and
distribution facilities in Huntingburg, Indiana.
(6) OTHER MATTERS
The Company has been identified as a potentially responsible party in six
government investigations and actions relating to waste disposal facilities
which may be subject to remedial action under Superfund. These proceedings are
based on allegations that the Company had hazardous waste substances disposed of
at the state permitted facilities in question. These proceedings under Superfund
involve many waste generators in addition to the Company and seek to allocate or
recover costs associated with site investigation and cleanup, which costs could
be substantial. The Company has a reserve of $150,000 against potential
liabilities under the above actions. Management does not believe there is a
reasonable likelihood that the potential liabilities the Company may incur in
connection with these environmental proceedings will have a material effect on
the Company's future financial condition or results of operations.
(7) DIVIDENDS
Dividends of $260,000 were charged to retained earnings for the nine months
ended June 3, 1995. The dividends on Series C Preferred Stock accrued in a
fiscal year are not payable until the following fiscal year.
(8) BOND REFINANCING
During the third fiscal quarter of fiscal 1994, the Company called
$2,940,000 of its 1989 Economic Development Revenue Bonds for redemption and
refinancing into lower interest rate bonds. The actual redemption and
refinancing took place on June 15, 1994. The Company wrote off the call
premium and unamortized costs on the 1989 bonds totaling approximately $72,000
($50,000 net of related tax benefits) during the third fiscal quarter. The loss
has been reflected as an extraordinary item in the consolidated statements of
income for the three and nine months ended May 28, 1994. The new bonds provided
an initial interest rate approximately 3% lower than the 1989 issue.
10
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Revenue - Net sales for the third quarter of fiscal 1995 increased $377,000 or
3% over the third quarter of fiscal 1994. This increase was the result of
increased sales of residential desks, computer desks, accent furniture and
chairs, as well as increased sales to outside trade customers of lumber and
fabricated wood parts by the Company's sawmill/dimension parts plant. These
increases were partially offset by decreased sales of bedroom furniture.
Net sales for the first nine months of fiscal 1995 increased $5,372,000 or
12% over the first nine months of fiscal 1994. The first nine months of fiscal
1995 included 40 weeks as compared to 39 weeks the previous year. This increase
was also the result of increased sales of residential desks, computer desks,
accent furniture and chairs, office furniture, as well as sales increases to
outside trade customers of lumber and fabricated wood parts by the Company's
sawmill/dimension parts plant. These increases were partially offset by
decreased sales of bedroom furniture.
Gross Margin - The Company's gross margin in the third quarter of fiscal 1995
was 17.1% compared to 16.9% in the third quarter of fiscal 1994. This increase
in gross margin was primarily the result of selling price increases effective
in the fourth quarter of fiscal 1994 and the second quarter of fiscal 1995 and
higher margin product sales mix.
The Company's gross margin in the first nine months of fiscal 1995 was
17.7% compared to 18.4% in the first nine months of fiscal 1994. This decrease
in gross margin was primarily the result of higher lumber and related material
costs as well as promotional priced sales and lower margin product sales mix.
Selling, General and Administrative (S,G&A) Expense - For the third quarter of
fiscal 1995, S,G&A expense amounted to $2,029,000 or 13.7% of sales compared to
$1,946,000 or 13.5% of sales for the third fiscal quarter of 1994.
For the first nine months of fiscal 1995, S,G&A expense amounted to
$6,503,000 or 12.8% of sales compared to $6,104,000 or 13.3% of sales for the
first nine months of fiscal 1994. This decrease as a percentage of sales is the
result of these expenses increasing at a lower rate than sales increases due to
the semi-fixed nature of many S,G&A expenses.
Interest Expense - For the third quarter of fiscal 1995, net interest was
$470,000 compared to $331,000 for the third quarter of fiscal 1994. This
increase was the result of a higher prime interest rate as well as higher bank
debt balances than in the previous year to finance the higher levels of accounts
receivable and inventories to support the Company's growth during this period.
11
<PAGE>
For the first nine months of fiscal 1995, net interest was $1,407,000
compared to $932,000 for the first nine months of fiscal 1994. This increase
was the result of a higher prime interest rate as well as higher bank debt
balances than in the previous year to finance the higher levels of accounts
receivable and inventories to support the Company's rapid growth during this
period.
Cumulative effect of a change in accounting for income taxes - During the first
quarter of fiscal 1994, the Company adopted Statement of Financial Accounting
Standard No. 109, ACCOUNTING FOR INCOME TAXES ("SFAS No. 109"). In adopting
SFAS No. 109, the Company recorded a credit of $1,795,000 in the first quarter
of fiscal 1994. Such amount has been reflected in the Consolidated Statements
of Income as the cumulative effect of an accounting change. See Note 2 to the
consolidated financial statements.
Extraordinary Item - During the third quarter of fiscal 1994, the Company called
$2,940,000 of its 1989 Economic Development Revenue Bonds for redemption and
refinancing into lower interest rate bonds. The actual redemption and
refinancing took place on June 15, 1994. The Company wrote off the call premium
and unamortized costs on the 1989 bonds totaling approximately $72,000 ($50,000
net of related tax benefits) during the third fiscal quarter. The loss has been
reflected as an extraordinary item in the consolidated statements of income for
the three and nine months ended May 28, 1994. The new bonds provide an initial
interest rate approximately 3% lower than the 1989 issue.
Liquidity and Capital Resources - Demands for funds relate to payments for raw
materials and other operating costs, debt obligations, accrued preferred stock
dividends and capital expenditures. The Company's ability to generate cash
adequate to meet short and long term needs is dependent on the collection of
accounts receivable and from its ability to borrow funds. During the first
quarter of fiscal 1994, the Company completed a $3.4 million bond offering to
fund an expansion project. See Note 5 to the consolidated financial statements
for more information. The Company's days of sales outstanding of accounts
receivable averaged 52 days for the first nine months of fiscal 1995 compared to
55 days for the first nine months of fiscal 1994. This slight improvement in
the collection period is the result of more timely payments by a major customer.
The Company's average days of inventory on hand averaged 96 days for the first
nine months of fiscal 1995 compared to 93 days for the first nine months of
fiscal 1994. This increase is due to the initial build-up of inventory for new
imported products as well as temporary increased inventory of certain raw
material board products. The Company's order backlog at June 3, 1995 was
approximately $13,025,000, a 32% increase from approximately $9,882,000 at the
same time last year.
12
<PAGE>
Key elements of the Consolidated Statements of Cash Flows:
<TABLE>
<CAPTION>
Nine Months
1995 1994
---- ----
<S> <C> <C>
Net cash provided by operating activities $433,000 $1,221,000
Cash used for investing activities (458,000) (4,079,000)
--------- ---------
Net cash flows from operating and investing activities (25,000) (2,858,000)
Cash provided (used) by financing activities (181,000) 3,565,000
--------- ---------
Net change in cash and cash equivalents $(206,000) $ 707,000
--------- ---------
--------- ---------
</TABLE>
During the first nine months of fiscal 1995, the Company provided cash
flows from operating activities of $433,000 compared to cash flows provided of
$1,221,000 the previous year primarily due to a decrease in accounts payable.
Investing activities required $458,000 during the first nine months of fiscal
1995 primarily for capital expenditures as compared to $4,079,000 the previous
year which was primarily for the Huntingburg expansion project. Financing
activities used $181,000 during the first nine months of fiscal 1995 in
reduction of debt compared to provided $3,565,000 the same nine months of the
previous year which was primarily from the Company's $3.4 million Economic
Development Revenue Bond.
The Company has been identified by the EPA or other parties as a potentially
responsible party ("PRP") in six government investigations and actions relating
to waste disposal facilities that may be subject to remedial action under
Superfund or similar state statutes. These proceedings are based on allegations
that hazardous substances from the Company's plants were disposed of at these
sites. At each site, many other parties have been named as PRPs or identified
as potentially responsible for remediation, and the group of PRPs undertaking
remediation includes many companies, including "Fortune 500" companies, believed
to have substantial financial resources. The Company has not determined to what
extent, if any, potential environmental liabilities may be covered by
insurance. The Company has paid a portion of the costs of preliminary
investigation and remediation at three sites, and has agreed to settle claims
against it made by PRPs at two sites. With respect to these six sites, the
total amount paid by the Company to date or subject to possible settlement is
less than $22,000. The Company has a reserve of $150,000 against potential
liabilities under the above actions. Management does not believe there is a
reasonable likelihood that the potential liabilities the Company may incur in
connection with these environmental proceedings will have a material effect on
the Company's future financial condition or results of operations.
The Company does not believe any events are probable which would materially
change its present liquidity position, which is adequate to satisfy known
demands for funds for operations and to pay bank and other debt.
13
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
The Company is involved in six environmental proceedings at this time. Due
to the limited nature of the Company's involvement in these proceedings, the
availability of certain defenses, and the involvement of other parties with
substantial financial resources in the proceedings, the Company does not believe
there is a reasonable likelihood that the potential liabilities the Company may
incur in connection with these proceedings will have a material adverse effect
on the Company's future financial condition or results of operations. For
further information regarding the Company's involvement in environmental
proceedings, see Item 3 to the Company's Annual Report on Form 10-K for the
fiscal year ended August 27, 1994.
Item 6. Exhibits and Reports on Form 8-K
(a) EXHIBITS
11. Calculations of earnings per share.
27. Financial Data Schedule
(b) REPORTS ON FORM 8-K
None.
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.
DMI FURNITURE, INC.
(Registrant)
Date: July 14, 1995 /s/Joseph G. Hill
------------------
Joseph G. Hill
Vice President-Finance,
Chief Financial Officer,
Secretary & Treasurer
14
<PAGE>
EXHIBIT 11.
DMI FURNITURE, INC.
CALCULATIONS OF EARNINGS PER SHARE
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
-------------------------- -------------------------
June 3, May 28, June 3, May 28,
1995 1994 1995 1994
---------- ------------ ---------- ----------
<S> <C> <C> <C> <C>
Income before cumulative effect of a
change in accounting principle
and extraordinary item $19,000 $106,000 $710,000 $837,000
Cumulative effect of a change in
accounting for income taxes - - - 1,795,000
Extraordinary item - (50,000) - (50,000)
---------- ------------- ---------- ----------
Net income $19,000 $56,000 $710,000 $2,582,000
========= ========= ========= =========
Average shares of common stock
and common equivalents
outstanding:
Average common shares
outstanding 2,970,026 2,961,172 2,970,026 2,945,255
Common stock equivalents--
dilutive options and convertible
preferred stock 2,751,614 2,892,318 2,755,622 2,864,283
---------- ------------- ---------- ----------
Average shares of common
stock and common stock
equivalents outstanding 5,721,640 5,853,490 5,725,648 5,809,538
========= ========= ========= =========
Income per share before cumulative
effect of a change in accounting principle
and extraordinary item $.00 $.02 $.12 $.14
Cumulative effect per share of a
change in accounting for income taxes - - - .31
Extraordinary item - (.01) - (.01)
-------- -------- -------- --------
Earnings per common share $.00 $.01 $.12 $.44
===== ===== ===== =====
</TABLE>
15
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> AUG-27-1994
<PERIOD-START> AUG-28-1994
<PERIOD-END> JUN-03-1995
<CASH> 240
<SECURITIES> 0
<RECEIVABLES> 9,707
<ALLOWANCES> 306
<INVENTORY> 15,378
<CURRENT-ASSETS> 26,403
<PP&E> 21,389
<DEPRECIATION> 9,302
<TOTAL-ASSETS> 39,405
<CURRENT-LIABILITIES> 8,006
<BONDS> 0
<COMMON> 15,392
0
4,040
<OTHER-SE> (8,875)
<TOTAL-LIABILITY-AND-EQUITY> 39,405
<SALES> 50,313
<TOTAL-REVENUES> 50,949
<CGS> 41,277
<TOTAL-COSTS> 41,912
<OTHER-EXPENSES> 6,311
<LOSS-PROVISION> 192
<INTEREST-EXPENSE> 1,407
<INCOME-PRETAX> 1,127
<INCOME-TAX> 417
<INCOME-CONTINUING> 710
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 710
<EPS-PRIMARY> .12
<EPS-DILUTED> .12
</TABLE>
