<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15 (d) of The Securities
Exchange Act of 1934
For the fiscal quarter ended May 30, 1998
-----------------------------------------
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 Ext.227
----------------------
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 May 30, 1998 - 3,167,251
- ---------------------------
<PAGE>
INDEX
<TABLE>
<CAPTION>
Part I. Financial Information Page
----
<S> <C>
Consolidated Balance Sheets - May 30, 1998
and August 30, 1997 3, 4
Consolidated Statements of Operations - Three and Nine
Months Ended May 30, 1998 and May 31, 1997 5
Consolidated Statements of Cash Flows - Nine Months Ended
May 30, 1998 and May 31, 1997 6, 7
Notes to Consolidated Financial Statements 8 -10
Management's Discussion and Analysis of Financial Condition
and Results of Operations 11-14
Part II. Other Information 15-16
Index to Exhibits
27. Financial Data Schedule 17
</TABLE>
2
<PAGE>
PART I. FINANCIAL INFORMATION
DMI FURNITURE, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
<TABLE>
<CAPTION>
May 30, Aug. 30,
ASSETS 1998 1997
- ------ ---- ----
<S> <C> <C>
Current assets:
Cash $ 520 $ 512
Restricted cash for debt payments 1,619 1,080
Accounts receivable - net 9,247 9,149
Inventories (Note 4) 14,457 12,262
Other current assets 540 363
Current portion of deferred income taxes (Note 2) 702 792
------- -------
Total current assets 27,085 24,158
Property, plant and equipment - at cost (Note 1) 22,344 20,436
Less accumulated depreciation 10,324 9,479
------- -------
Net property, plant and equipment 12,020 10,957
Other assets 448 436
------- -------
Total Assets $39,553 $35,551
------- -------
------- -------
</TABLE>
See accompanying notes.
3
<PAGE>
DMI FURNITURE, INC.
CONSOLIDATED BALANCE SHEETS
(Continued)
(Amounts in thousands)
<TABLE>
<CAPTION>
May 30, Aug. 30,
LIABILITIES AND STOCKHOLDERS' EQUITY 1998 1997
- ------------------------------------ ---- ----
<S> <C> <C>
Current liabilities:
Trade accounts payable $ 2,960 $ 2,890
Accrued liabilities 2,330 2,719
Accrued dividends on preferred
stock (Note 6) 459 399
Long-term debt due within one year 2,326 2,012
------- -------
Total current liabilities 8,075 8,020
Long-term liabilities:
Long-term debt 15,728 12,846
Accrued pension costs 441 601
Deferred compensation 292 321
Deferred income taxes (Note 2) 502 502
------- -------
16,963 14,270
Stockholders' equity:
Series C convertible preferred stock, $2 par value,
1,995,050 authorized and outstanding 3,990 3,990
Common stock 317 315
Additional paid-in capital 15,378 15,341
Retained deficit (5,170) (6,385)
------- -------
Total stockholders' equity 14,515 13,261
------- -------
Total liabilities and stockholders' equity $39,553 $35,551
------- -------
------- -------
</TABLE>
See accompanying notes.
4
<PAGE>
DMI FURNITURE, INC.
STATEMENTS OF INCOME
(Amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
---------------------- ---------------------
May 30, May 31, May 30, May 31,
1998 1997 1998 1997
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net sales $16,008 $12,530 $46,232 $42,186
Cost of sales 12,251 9,339 35,711 32,160
------- ------- ------- -------
Gross profit 3,757 3,191 10,521 10,026
Selling, general and
administrative expenses 2,627 2,226 7,435 6,528
Plant closing reserve (Note 7) - - - (118)
------- ------- ------- -------
Operating profit 1,130 965 3,086 3,616
Interest expense (net) (246) (238) (711) (799)
Gain on sale of asset (Note 7) - 192 - 192
------- ------- ------- -------
Income before income taxes 884 919 2,375 3,009
Provision for income taxes (Note 2) (335) (349) (900) (1,143)
------- ------- ------- -------
Net income (Note7) $ 549 $ 570 $ 1,475 $ 1,866
------- ------- ------- -------
------- ------- ------- -------
Net income applicable to common stock $ 442 $ 470 $ 1,215 $ 1,541
------- ------- ------- -------
------- ------- ------- -------
Earnings per common share (Notes 3 & 7):
Basic $ 0.14 $ 0.15 $ 0.38 $ 0.50
------- ------- ------- -------
------- ------- ------- -------
Diluted $ 0.09 $ 0.09 $ 0.24 $ 0.31
------- ------- ------- -------
------- ------- ------- -------
</TABLE>
See accompanying notes.
5
<PAGE>
DMI FURNITURE, INC.
STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
May 30, May 31,
1998 1997
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net income (Note 7) $ 1,475 $ 1,866
Adjustments to reconcile net income to
net cash provided (used) by
operating activities:
Depreciation and amortization 845 739
Deferred income taxes (Note 2) 90 332
Pension costs (160) (133)
Gain on sale of asset (Note 7) - (192)
Deferred compensation (29) (45)
Changes in assets and liabilities:
Accounts receivable (98) 501
Inventories (2,195) (1,702)
Other assets (189) 144
Trade accounts payable 70 (194)
Accrued liabilities (Note 7) (355) 773
------- -------
Total adjustments (2,021) 223
------- -------
Net cash provided by
operating activities (546) 2,089
------- -------
Cash flows (used) by
investing activities:
Capital expenditures (1,908) (650)
Proceeds from sale of asset (Note 7) - 192
------- -------
Cash used by investing
activities (1,908) (458)
------- -------
</TABLE>
See accompanying notes.
6
<PAGE>
DMI FURNITURE, INC.
STATEMENTS OF CASH FLOWS
(Continued)
(Amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
May 30, May 31,
1998 1997
---- ----
<S> <C> <C>
Cash flows provided (used) by
financing activities:
Borrowings from line of credit 18,230 12,800
Payments on line of credit (15,778) (13,400)
Additions to long term debt 1,490 -
Payments on long term debt (746) (956)
Restricted cash (539) -
Proceeds from stock options exercised 5 73
Dividends (200) -
------- -------
Cash used by
financing activities 2,462 (1,483)
------- -------
Increase in cash 8 148
Cash - beginning of period 512 97
------- -------
Cash - end of period $ 520 $ 245
------- -------
------- -------
Cash paid for:
Interest $ 682 $ 814
------- -------
------- -------
Income taxes $ 1,063 $ 494
------- -------
------- -------
</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 May 30, 1998 and for the three and
nine months ended May 30, 1998 and May 31, 1997 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 Form 10-K.
The results of operations for the interim periods are not necessarily an
indication of the results to be expected for the full 1998 fiscal year.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
The specific useful lives of property, plant, and equipment are as
follows:
<TABLE>
<CAPTION>
<S> <C>
Building and Leasehold Improvements 8 - 35 yrs.
Machinery and Equipment 3 - 13 yrs.
</TABLE>
(2) Income Taxes
Income tax expense (benefit) consisted of the following (in thousands):
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
May 30, May 31, May 30, May 31,
1998 1997 1998 1997
---- ---- ---- ----
<S> <C> <C> <C> <C>
Current $301 $349 $810 $ 811
Deferred 34 0 90 332
---- ---- ---- ------
Total $335 $349 $900 $1,143
---- ---- ---- ------
---- ---- ---- ------
</TABLE>
8
<PAGE>
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
May 30, May 31, May 30, May 31,
1998 1997 1998 1997
---- ---- ---- ----
<S> <C> <C> <C> <C>
Tax at 34% statutory rate $301 $312 $808 $1,023
State income taxes 34 37 92 120
---- ---- ---- ------
Income Taxes $335 $349 $900 $1,143
---- ---- ---- ------
---- ---- ---- ------
</TABLE>
(3) Earnings Per Common Share
In March 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 128, "Earnings Per Share" ("SFAS No.
128"). This standard modifies disclosure requirements for companies required
to report earnings per share ("EPS") to include presentations of Basic EPS
(which includes no dilution of common stock equivalents) and, if applicable,
Diluted EPS (which reflects the potential dilution of common stock
equivalents). The standard was effective for the Company with the completion
of its fiscal 1998 second quarter.
<TABLE>
<CAPTION>
(Thousands except per share amounts)
Three Months Ended Nine Months Ended
May 30, May 31, May 30, May 31,
1998 1997 1998 1997
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net income $ 549 $ 570 $1,475 $1,866
Less: preferred stock dividends (107) (100) (260) (325)
------ ------ ------ ------
Net income applicable to common
stock $ 442 $ 470 $1,215 $1,541
------ ------ ------ ------
------ ------ ------ ------
Average common shares outstanding 3,167 3,143 3,163 3,102
Common stock equivalents-dilutive
options and convertible preferred
stock 3,004 2,886 2,947 2,882
------ ------ ------ ------
Average shares of common stock
and equivalents outstanding 6,171 6,029 6,110 5,984
------ ------ ------ ------
------ ------ ------ ------
Basic earnings per share $ .14 $ .15 $ .38 $ .50
------ ------ ------ ------
------ ------ ------ ------
(Net income applicable to common stock
divided by average common shares
outstanding)
Diluted earnings per share $ .09 $ .09 $ .24 $ .31
------ ------ ------ ------
------ ------ ------ ------
(Net income divided by average shares
of common stock and equivalents
outstanding)
</TABLE>
9
<PAGE>
(4) Inventories
Inventories were comprised of the following at May 30, 1998 and August
30, 1997:
<TABLE>
<CAPTION>
May 30, 1998 August 30,1997
------------ --------------
<S> <C> <C>
Finished Products $ 9,008,000 $ 6,789,000
Work in Process 514,000 514,000
Raw Materials 4,935,000 4,959,000
----------- -----------
$14,457,000 $12,262,000
----------- -----------
----------- -----------
</TABLE>
(5) Other matters
The Company is currently subject to claims under federal and state
environmental laws based on allegations that the Company had hazardous
substances disposed of at three waste disposal sites. After depositing
$57,000 in a trust fund under the terms of a tentative settlement of claims
arising from one site and paying its portion of preliminary investigation and
remediation costs at the other two sites, the Company retains a reserve of
approximately $45,000 against potential environmental liabilities. Due to
the limited nature of the Company's involvement in these environmental
proceedings, the availability of certain defenses, and the involvement of
many other parties with substantial financial resources in the proceedings,
the Company does not anticipate, based on currently available information,
that potential environmental liabilities arising from these proceedings are
likely to exceed the amount of the Company's reserve by an amount that would
have a material effect on the Company's financial condition, results of
operations or cash flows. Expenses for the year to date were not material.
(6) Dividends
The dividends on Series C Preferred Stock accrued in a fiscal year are
not payable until the following fiscal year.
(7) Plant closing
The Company permanently closed its Gettysburg, Pennsylvania
manufacturing plant and warehouse facilities and consolidated the production
and distribution activities of those operations into its Huntingburg, Indiana
facilities during the second quarter of fiscal 1996. Consolidation of
production and warehousing into the Indiana facilities resulted in lower
manufacturing and warehousing overhead and plant administrative costs. During
the first quarter of fiscal 1997 the Company sold the Gettysburg,
Pennsylvania warehouse and realized gross proceeds of approximately $130,000.
Based upon this transaction approximately $118,000 of the book provision
related to the initial recording of property, plant and equipment was not
needed. During the third quarter of fiscal 1997, the Company sold certain
environmental permits associated with the closed Pennsylvania facility and
realized approximately $192,000 of proceeds from the sale.
10
<PAGE>
The information set forth in "Management's Discussion and Analysis of
Financial Condition and Results of Operations" below and in the other
portions of this report includes forward-looking statements about the
Corporation and its business. For this purpose, the use of words such as
"believes," "anticipates," "plans," "expects," and similar expressions are
intended to identify forward-looking statements. Factors that realistically
could cause results to differ materially from those projected in the
forward-looking statements include the cyclical and seasonal nature of the
furniture market; the availability and cost of raw materials and labor;
availability, terms and deployment of capital; events that disrupt the flow
of goods from off-shore manufacturing sources; merchandising decisions by one
or more of the Company's major customers that adversely affect their
purchases of the Company's furniture products; changes in fashion or tastes;
general conditions in the economy or capital markets; demographic changes;
competition; and other factors identified in "Management's Discussion and
Analysis of Financial Condition and Results of Operations" below, in "Item 1.
Business" of the Company's 1997 Annual Report on Form 10-K, and in the
Company's other filings with the Securities and Exchange Commission.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Revenue - Net sales for the third quarter of fiscal 1998 increased $3,478,000
or 28% from the third quarter of fiscal 1997. This increase was primarily
the result of increased sales of commercial office and home office furniture,
and substantially increased sales to a major customer. This increase was
offset somewhat by decreased sales of promotional priced bedroom furniture.
Office furniture sales increased approximately 8%; sales of home office
furniture and other residential furniture including desks, desk chairs, wall
systems, and occasional tables increased approximately 180%; and sales of
budget priced bedroom furniture decreased approximately 10%.
Net sales for the first nine months of fiscal 1998 increased $4,046,000
or approximately 9.5% from the first nine months of fiscal 1997. This
increase was the result of the reasons mentioned above, further offset by
decreased sales of a product line discontinued in fiscal 1997. Office
furniture sales increased by approximately 8%; sales of home office
furniture and other residential furniture including desks, desk chairs, wall
systems, and occasional tables increased approximately 55%, and bedroom
furniture decreased by approximately 12%.
Gross Margin - The Company's gross margin in the third quarter of fiscal 1998
was 23.5% compared to 25.5% in the third quarter of fiscal 1997. This
decrease in gross margin was primarily the result of lower production levels
and gross margins associated with the promotional
11
<PAGE>
bedroom furniture line as a result of weak demand, as well as lower margin
sales mix than the previous year.
The Company's gross margin in the first nine months of fiscal 1998 was
22.8% compared to 23.8 % in the first nine months of fiscal 1997. This
decrease was primarily the result of the reasons mentioned in the preceding
paragraph.
Selling, General and Administrative (S,G&A) Expense - For the third quarter
of fiscal 1998, S,G&A expense amounted to $2,627,000 or 16.4% of sales
compared to $2,226,000 or 17.8% of sales for the third fiscal quarter of
1997. This decrease as a percent of sales is primarily the result of the
fixed nature of a majority of these expenses relative to the substantial
sales increase, offset somewhat by the sales and marketing related start-up
expenses of the new Wynwood division. For the first nine months of fiscal
1998, S,G&A expense amounted to $7,435,000 or 16.1% of sales compared to
$6,528,000 or 15.5% of sales for the first nine months of fiscal 1997. This
increase is primarily the result of the sales and marketing related start-up
expenses of the new Wynwood division. On September 4, 1997 the Company
announced the formation of the Wynwood division to market better quality
imported wood furniture. The sales and marketing related start-up expenses
totaled approximately $200,000 and $630,000 during the third quarter and
first nine months, respectively, of fiscal 1998. These expenses had the
affect of lowering diluted earnings per common share by $.02 for the third
quarter and $.06 for the first nine months of fiscal 1998.
Interest Expense - For the third quarter of fiscal 1998, net interest was
$246,000 compared to $238,000 for the third quarter of fiscal 1997. This
increase was primarily the result of borrowings to finance higher levels of
accounts receivable and inventory to support the sales growth.
For the first nine months of fiscal 1998, net interest was $711,000
compared to $799,000 for the first nine months of fiscal 1997, or a decrease
of 11%. This decrease was the result of lower borrowing rates resulting
from the Company's amended credit arrangements as well as lower rates in the
financial markets, offset somewhat by the reason mentioned above.
The Company permanently closed its Gettysburg, Pennsylvania
manufacturing plant and warehouse facilities and consolidated the production
and distribution activities of those operations into its Huntingburg, Indiana
facilities during the second quarter of fiscal 1996. Consolidation of
production and warehousing into the Indiana facilities resulted in lower
manufacturing and warehousing overhead and plant administrative costs. During
the first quarter of fiscal 1997 the Company sold the Gettysburg,
Pennsylvania warehouse and realized gross proceeds of approximately $130,000.
Based upon this transaction approximately $118,000 of the book provision
related to the initial recording of property, plant and equipment was not
needed. During the third quarter of fiscal 1997, the Company sold certain
environmental permits associated with the closed Pennsylvania facility and
realized approximately $192,000 of proceeds from the sale.
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
12
<PAGE>
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. The Company's days of sales outstanding of
accounts receivable averaged 54 days for the first nine months of fiscal 1998
and 51 days for the first nine months fiscal 1997. The Company's average
days of inventory on hand averaged 94 days for the first nine months of
fiscal 1998 compared to 93 days for the first nine months of fiscal 1997.
Key elements of the Consolidated Statements of Cash Flows:
<TABLE>
<CAPTION>
Nine Months
1998 1997
---- ----
<S> <C> <C>
Net cash provided by operating activities $ (546,000) $ 2,089,000
Cash used for investing activities (1,908,000) (458,000)
----------- -----------
Net cash flows from operating and investing activities (2,454,000) 1,631,000
Cash used by financing activities 2,462,000 (1,483,000)
----------- -----------
Net change in cash and cash equivalents $ 8,000 $ 148,000
----------- -----------
----------- -----------
</TABLE>
During the first nine months of fiscal 1998 , the Company used cash
flows for operating activities of $546,000 compared to cash flows provided of
$2,089,000 the previous year. The cash flows used in the current year were
primarily to finance increased inventories to support the new Wynwood
division as well as to support higher sales of other furniture. The cash
flows from net income were lower in the current year primarily as a result of
the start-up expenses of the new Wynwood division. Investing activities
required $1,908,000 during the first nine months of fiscal 1998 and $458,000
during the first nine months of fiscal 1997 primarily for capital
expenditures. The increased amount for the current year is primarily a
result of the building project for the new Wynwood division. Financing
activities used $2,462,000 during the first nine months of fiscal 1998
primarily for new borrowings for the building project and higher inventories
previously mentioned, compared to funds used of $1,483,000 primarily in
reduction of debt for the nine month period of the previous year.
The Company is currently subject to claims under federal and state
environmental laws based on allegations that the Company had hazardous
substances disposed of at three waste disposal sites. After depositing
$57,000 in a trust fund under the terms of a tentative settlement of claims
arising from one site and paying its portion of preliminary investigation and
remediation costs at the other two sites, the Company retains a reserve of
approximately $45,000 against potential environmental liabilities. Due to
the limited nature of the Company's involvement in these environmental
proceedings, the availability of certain defenses, and the involvement of
many other parties with substantial financial resources in the proceedings,
the Company does not anticipate, based on currently available information,
that potential environmental liabilities arising from these proceedings are
likely to exceed the amount of the Company's reserve by an amount that would
have a material effect on the Company's financial condition, results of
operations or cash flows. Expenses for the year to date were not material.
See "Item 3. Legal Proceedings."
13
<PAGE>
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.
The Company has received certifications or representations from the
vendors of its critical hardware, system software, and application software
that those products are Year 2000 ready. The Company considers itself to be
Year 2000 systems ready in all material respects.
14
<PAGE>
PART II. OTHER INFORMATION
Item 3. Legal Proceedings
The Company is currently subject to claims under federal and state
environmental laws based on allegations that the Company had hazardous
substances disposed of at three waste disposal sites. After depositing
$57,000 in a trust fund under the terms of a tentative settlement of claims
arising from one site and paying its portion of preliminary investigation and
remediation costs at the other two sites, the Company retains a reserve of
approximately $45,000 against potential environmental liabilities. Due to
the limited nature of the Company's involvement in these environmental
proceedings, the availability of certain defenses, and the involvement of
many other parties with substantial financial resources in the proceedings,
the Company does not anticipate, based on currently available information,
that potential environmental liabilities arising from these proceedings are
likely to exceed the amount of the Company's reserve by an amount that would
have a material effect on the Company's financial condition, results of
operations or cash flows. Expenses for the year to date were not material.
The Company is also a defendant in various lawsuits arising in the
normal course of business, including two other environmental matters. In
management's opinion, these lawsuits are not material to the results of
operations or financial position of the Company, or are adequately covered
by insurance.
15
<PAGE>
Item 6. Exhibits and Reports on Form 8-K
(a) EXHIBITS
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 9, 1998 /s/Joseph G. Hill
--------------------------------------
Joseph G. Hill
Vice President-Finance,
Chief Financial Officer,
Secretary & Treasurer
16
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> AUG-29-1998
<PERIOD-START> AUG-31-1997
<PERIOD-END> MAY-30-1998
<CASH> 2,139
<SECURITIES> 0
<RECEIVABLES> 9,492
<ALLOWANCES> 245
<INVENTORY> 14,457
<CURRENT-ASSETS> 27,085
<PP&E> 22,344
<DEPRECIATION> 10,324
<TOTAL-ASSETS> 39,553
<CURRENT-LIABILITIES> 8,075
<BONDS> 15,728
0
3,990
<COMMON> 317
<OTHER-SE> 10,208
<TOTAL-LIABILITY-AND-EQUITY> 39,553
<SALES> 45,924
<TOTAL-REVENUES> 46,232
<CGS> 45,860
<TOTAL-COSTS> 46,232
<OTHER-EXPENSES> 7,332
<LOSS-PROVISION> 103
<INTEREST-EXPENSE> 711
<INCOME-PRETAX> 2,375
<INCOME-TAX> 900
<INCOME-CONTINUING> 1,475
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,475
<EPS-PRIMARY> 0.38
<EPS-DILUTED> 0.24
</TABLE>
