UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- --------- EXCHANGE ACT OF 1934
For the quarterly period ended June 28, 1997
------------------------------------------
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- --------- EXCHANGE ACT OF 1934
For the transition period from to
---------------------- --------------------
Commission file number 0-7597
-------------------------------------------------------
COURIER CORPORATION
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
MASSACHUSETTS 04-2502514
- -------------------------------------------------------------------------------
(State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or organization)
15 Wellman Avenue, North Chelmsford, Massachusetts 01863
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(508) 251-6000
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
NO CHANGE
- -------------------------------------------------------------------------------
(Former name,former address and former
fiscal year,if changed since last report.)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by 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.
Class Outstanding at August 1, 1997
- ----------------------------------- -----------------------------------
Common Stock, $1 par value 2,013,709 shares
Page 1 of 14
COURIER CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
<TABLE>
<CAPTION>
June 28, September 28,
ASSETS 1997 1996
------------------ ------------------
<S> <C> <C>
Current assets:
Cash and cash equivalents $25 $33
Accounts receivable, less allowance
for uncollectible accounts 21,980 24,935
Inventories (Note B) 10,755 8,178
Deferred income taxes 1,502 1,580
Other current assets 749 954
------------------ ------------------
Total current assets 35,011 35,680
Property, plant and equipment, less
accumulated depreciation: $63,159
at June 28, 1997 and $58,868
at September 28, 1996 34,463 36,675
Real estate held for sale or lease, net (Note D) 2,782 698
Goodwill, at cost 1,204 1,204
Other assets 497 509
------------------ ------------------
Total assets $73,957 $74,766
================== ==================
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
Page 2 of 14
COURIER CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
<TABLE>
<CAPTION>
June 28, September 28,
LIABILITIES AND STOCKHOLDERS' EQUITY 1997 1996
------------------ ------------------
<S> <C> <C>
Current liabilities:
Current maturities of long-term debt $366 $466
Accounts payable 8,458 9,705
Accrued taxes 4,403 4,835
Other current liabilities 8,078 6,952
------------------ ------------------
Total current liabilities 21,305 21,958
Long-term debt 8,183 9,277
Deferred income taxes 3,344 3,488
Other liabilities 1,314 1,279
------------------ ------------------
Total liabilities 34,146 36,002
------------------ ------------------
Stockholders' equity:
Preferred stock, $1 par value - authorized
1,000,000 shares; none issued
Common stock, $1 par value - authorized
6,000,000 shares; issued 4,500,000 shares 4,500 4,500
Additional paid-in capital 9,072 9,055
Retained earnings 50,559 48,713
Treasury stock, at cost: 2,518,000 shares
at June 28, 1997 and 2,471,000
shares at September 28, 1996 (24,320) (23,504)
------------------ ------------------
Total stockholders' equity 39,811 38,764
------------------ ------------------
Total liabilities and stockholders' equity $73,957 $74,766
================== ==================
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
Page 3 of 14
COURIER CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands except per share amounts)
<TABLE>
<CAPTION>
QUARTER ENDED NINE MONTHS ENDED
---------------------------------- ---------------------------------
June 28, June 29, June 28, June 29,
1997 1996 1997 1996
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Net sales $32,721 $32,928 $95,271 $94,427
Cost of sales 26,212 27,047 75,672 77,258
-------------- -------------- -------------- --------------
Gross profit 6,509 5,881 19,599 17,169
Selling and administrative expenses 5,148 4,962 15,394 14,334
Interest expense 169 210 531 677
Other income (expense) (Note D) 7 26 21 (288)
-------------- -------------- -------------- --------------
Income before taxes 1,199 735 3,695 1,870
Provision for income taxes (Note C) 384 220 1,123 68
-------------- -------------- -------------- --------------
Net income $815 $515 $2,572 $1,802
============== ============== ============== ==============
Net income per share $0.40 $0.25 $1.26 $0.87
============== ============== ============== ==============
Cash dividends declared per share $0.12 $0.12 $0.36 $0.36
============== ============== ============== ==============
Weighted average shares outstanding 2,026,000 2,067,000 2,041,000 2,079,000
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
Page 4 of 14
COURIER CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in thousands)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
-----------------------------------
June 28, June 29,
1997 1996
-------------- --------------
<S> <C> <C>
Cash provided from operating activities $8,072 $1,443
-------------- --------------
Investment activities:
Capital expenditures (5,355) (3,523)
Proceeds from sale of assets (Note D) - 1,792
-------------- --------------
Cash used for investment activities (5,355) (1,731)
-------------- --------------
Financing activities:
Repayment of long-term debt (397) (347)
Increase (decrease) in long-term borrowings (797) 763
Cash dividends (726) (727)
Stock repurchase program (882) -
Proceeds from stock plans 77 226
-------------- --------------
Cash used for financing activities (2,725) (85)
-------------- --------------
Decrease in cash and cash equivalents (8) (373)
Cash at the beginning of the period 33 1,147
-------------- --------------
Cash at the end of the period $25 $774
============== ==============
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
Page 5 of 14
COURIER CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
UNAUDITED FINANCIAL STATEMENTS
------------------------------
The balance sheet as of June 28, 1997, the statements of income for the
quarters ended and the nine-month periods ended June 28, 1997 and June
29, 1996 and the statements of cash flows for the nine-month periods
ended June 28, 1997 and June 29, 1996 are unaudited and, in the opinion
of management, all adjustments necessary for a fair presentation of
such financial statements have been recorded. Such adjustments
consisted only of normal recurring items. Certain amounts for fiscal
1996 have been reclassified in the accompanying financial statements in
order to be consistent with the current year's classifications.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted. The year-end
balance sheet data as of September 28, 1996 was derived from audited
financial statements, but does not include disclosures required by
generally accepted accounting principles. It is suggested that these
interim financial statements be read in conjunction with the Company's
most recent Form 10-K and Annual Report as of September 28, 1996.
In October 1995, the Financial Accounting Standards Board issued SFAS
No. 123, "Accounting for Stock-Based Compensation," which permits
either recording the estimated value of stock-based employee
compensation over the applicable vesting period or disclosing the
unrecorded cost and the related effect on net income per share in the
notes to the financial statements. The Company will continue to apply
current accounting rules for the recording of stock-based compensation
(APB Opinion No. 25) and will comply with the provision of SFAS No. 123
relative to disclosure in the notes to the financial statements which
will be effective with the Company's Annual Report for the fiscal year
ending September 27, 1997.
In March 1997, the Financial Accounting Standards Board issued SFAS No.
128, "Earnings per Share," which is not effective until the first
quarter of the Company's fiscal 1998. This new standard requires dual
presentation of basic and diluted earnings per share ("EPS") on the
face of the statement of income and requires a reconciliation of the
numerators and denominators of basic and diluted EPS calculations. The
results would not materially differ from earnings per share as
presented.
In June 1997, the Financial Accounting Standards Board issued SFAS No.
130, "Reporting Comprehensive Income" which establishes standards for
reporting and display of comprehensive income and its components in a
full set of general-purpose financial statements. This new standard
will require 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. SFAS No. 130 requires that a company (a)
classify items of other comprehensive income by their nature in a
financial statement and (b) display the accumulated balance of other
comprehensive income separately from retained earnings and additional
paid-in capital in the equity section of the balance sheet. This new
standard will be effective in the Company's fiscal year ending
September 25, 1999 and will require reclassification of financial
statements for earlier periods provided for comparative purposes. The
Company has not determined the effects, if any, that SFAS No. 130 will
have on its consolidated financial statements.
Page 6 of 14
COURIER CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Also in June 1997, SFAS No. 131, "Disclosure about Segments of an
Enterprise and Related Information" was issued. This new standard
changes the way that public companies report selected information about
operating segments in annual financial statements and requires that
those companies report selected information about segments in interim
financial reports issued to shareholders. It also establishes standards
for related disclosures about products and services, geographic areas
and major customers. SFAS No. 131 will be effective in the Company's
fiscal year ending September 25, 1999. The Company has not determined
the effects, if any, that SFAS No. 131 will have on the disclosures in
its consolidated financial statements.
B. INVENTORIES
Inventories are valued at the lower of cost or market. Cost is
determined using the last-in, first-out (LIFO) method for substantially
all inventories. Inventories consisted of the following:
(000's Omitted)
-------------------------------
June 28, September 28,
1997 1996
-------------- ---------------
Raw materials $ 2,848 $ 2,901
Work in process 6,221 3,746
Finished goods 1,686 1,531
------- -------
Total inventory $10,755 $ 8,178
======= =======
C. INCOME TAXES
The statutory federal tax rate is 34%. The total tax provision differs
from that computed using the statutory federal tax rate for the
following reasons:
(000's Omitted)
Quarter Ended Nine Months Ended
------------- -----------------
June 28, June 29, June 28, June 29,
1997 1996 1997 1996
------- ------- ------- -------
Federal income taxes at
statutory rate $ 408 $ 250 $ 1,256 $ 636
State income taxes, net 33 18 79 52
Donation of real
estate (Note D) -- -- -- (500)
Export related income (68) (68) (161) (117)
Other 11 20 (51) (3)
------- ------- ------- -------
Total provision $ 384 $ 220 $ 1,123 $ 68
======= ======= ======= =======
Page 7 of 14
COURIER CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
D. OTHER INCOME (EXPENSE)
On March 1, 1996, the Company completed the sale and donation of its
former telephone directory manufacturing facility which had been
vacant. Sales proceeds of $1.8 million for approximately half the site
resulted in a pretax loss of $365,000 which is included in other income
(expense). Tax benefits from the donation of the remainder of the
property resulted in an after-tax gain on the overall transaction of
approximately $250,000 or $.12 per share.
E. SUBSEQUENT EVENT
On July 21, 1997, the Company acquired all of the outstanding capital
stock of Book-mart Press, Inc. ("Book-mart"), a North Bergen, New
Jersey book manufacturer specializing in short to medium runs of
softcover and hardcover books. Book-mart had sales last year of
approximately $11 million. The Company paid approximately $12.7 million
in cash to the former stockholders of Book-mart for their shares of
capital stock. At the time of the closing, Book-mart had approximately
$2.3 million of outstanding bank indebtedness which was subsequently
paid in full. In connection with the acquisition, 11,111 shares of
Courier common stock (based upon a valuation of $18 per share) were
issued to two key executives of Book-mart for non-compete agreements.
In addition, one of such executives was issued 16,667 shares (subject
to a four-year vesting schedule) in connection with an employment
agreement. The acquisition will be accounted for as a purchase and,
accordingly, the results of operations will be included in the
consolidated financial statements from July 21, 1997 forward.
The purchase price was determined in an arm's-length negotiation and
was financed using the Company's existing credit facility with
BankBoston, N.A. and State Street Bank and Trust Company. The amount
available under this facility was extended from $20 million to $30
million in contemplation of the transaction. The facility was also used
by the Company to repay the approximately $2.3 million of Book-mart's
existing bank debt subsequent to the consummation of the acquisition.
Page 8 of 14
COURIER CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS:
----------------------
Sales of $32.7 million in the third quarter of fiscal 1997 were down
slightly from last year's third quarter sales of $32.9 million due to a
continuing drop in paper prices and the paper content of sales.
Excluding the sales value of paper, sales grew by approximately 6% for
the quarter. Sales in the educational market have been particularly
strong this year while software documentation sales have continued to
decline.
Gross profit increased to $6.5 million, or 20% of sales, in the third
quarter from $5.9 million, or 18% of sales, in the same period last
year. The improvement in gross profit reflects increased sales volume
and related capacity utilization, gains in productivity, lower costs
and benefits realized from streamlining software documentation
operations.
Selling and administrative expenses of $5.1 million in the third
quarter of fiscal 1997 were comparable to the same period last year of
$5.0 million. As a percentage of sales, selling and administrative
expenses were 16% compared to 15% in the third quarter last year. The
increase includes expansion of the Company's Copyright Management
Services (CMS) division and expenses that relate to the increase in
profitability.
Interest expense was $169,000 compared to $210,000 in the third quarter
of fiscal 1996 reflecting decreased average borrowings.
The Company's effective tax rate was 32% for the third quarter of
fiscal 1997 as compared to the 30% rate for the corresponding period
last year.
Net income for the third quarter of fiscal 1997 was $815,000 or $.40
per share, compared to $515,000 or $.25 per share in last year's third
quarter. The 58% growth in net income reflects the increase in gross
profit as a percent of sales resulting from increased capacity
utilization, productivity gains and lower costs.
For the nine months ended June 28, 1997, the Company reported net
income of $2.6 million or $1.26 per share, compared to $1.8 million or
$.87 per share for the same period last year. Sales for the first nine
months were $95.3 million versus $94.4 million in the comparable period
of fiscal 1996. The factors impacting third quarter results similarly
affected year-to-date results. In addition, a decrease in the market
price of recycled paper reduced gross profit by approximately $330,000
in the first nine months of fiscal 1997 compared to the same period
last year; however, paper recycling income in the third quarter was
comparable to last year's third quarter. Also, in the first quarter of
fiscal 1997, costs associated with the consolidation of operations in
Philadelphia amounted to approximately $350,000. The consolidation into
a newer, more efficient manufacturing facility was completed in
December 1996. The second quarter of fiscal 1996 includes the Company's
sale and donation of its former telephone directory manufacturing
facility. The sale of approximately half the site resulted in a pretax
loss of $365,000. Tax benefits from the donation of the remainder of
the property resulted in an after-tax gain of approximately $250,000 or
$.12 per share on the overall transaction.
Page 9 of 14
COURIER CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS (CONTINUED):
----------------------------------
In October 1995, the Financial Accounting Standards Board issued SFAS
No. 123, "Accounting for Stock-Based Compensation," which permits
either recording the estimated value of stock-based employee
compensation over the applicable vesting period or disclosing the
unrecorded cost and the related effect on net income per share in the
notes to the financial statements. The Company will continue to apply
current accounting rules for the recording of stock-based compensation
and will comply with the provision of SFAS No. 123 relative to
disclosure in the notes to the financial statements which will be
effective with the Company's Annual Report for the fiscal year ending
September 27, 1997.
In March 1997, the Financial Accounting Standards Board issued SFAS No.
128, "Earnings per Share," which will not be effective until the first
quarter of the Company's fiscal 1998. This new standard will require
the Company to restate all previously reported earnings per share
information to conform with the new pronouncement's requirements. The
results would not materially differ from earnings per share as
presented.
In June 1997, the Financial Accounting Standards Board issued SFAS No.
130, "Reporting Comprehensive Income" which establishes standards for
reporting and display of comprehensive income and its components in a
full set of general-purpose financial statements. This new standard
will require 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. SFAS No. 130 requires that a company (a)
classify items of other comprehensive income by their nature in a
financial statement and (b) display the accumulated balance of other
comprehensive income separately from retained earnings and additional
paid-in capital in the equity section of the balance sheet. This new
standard will be effective in the Company's fiscal year ending
September 25, 1999 and will require reclassification of financial
statements for earlier periods provided for comparative purposes. The
Company has not determined the effects, if any, that SFAS No. 130 will
have on its consolidated financial statements.
Also in June 1997, SFAS No. 131, "Disclosure about Segments of an
Enterprise and Related Information" was issued. This new standard
changes the way that public companies report selected information about
operating segments in annual financial statements and requires that
those companies report selected information about segments in interim
financial reports issued to shareholders. It also establishes standards
for related disclosures about products and services, geographic areas
and major customers. SFAS No. 131 will be effective in the Company's
fiscal year ending September 25, 1999. The Company has not determined
the effects, if any, that SFAS No. 131 will have on the disclosures in
its consolidated financial statements.
Page 10 of 14
COURIER CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES:
--------------------------------
During the first nine months of fiscal 1997, operations provided
approximately $8.1 million of cash. Net income was $2.6 million,
depreciation was $5.5 million and working capital was comparable to
year-end levels.
Investment activities in the first nine months of fiscal 1997 used
approximately $5.4 million of cash for capital expenditures. Capital
expenditures were made primarily for the final phase of the building
expansion at the Company's Philadelphia manufacturing facility and for
upgrades to binding equipment. Capital expenditures for the entire
fiscal year are expected to be approximately $8 million.
In December 1996, the Company completed the consolidation of operations
in Philadelphia from an older, multi-story facility to the recently
expanded, more efficient property. An agreement to sell the multi-story
facility subject to resolution of certain contingencies was scheduled
for closing in July 1997. The agreement did not close and the facility
is presently offered for sale. The Company's Raymond, New Hampshire
facility, which had been leased through June 1996, is now vacant
pending sale or lease. With respect to the Company's former
headquarters in Lowell, Massachusetts, which was vacated in September
1996, the Company has considered various alternatives and is presently
giving priority to donating the property to a not-for-profit
organization in order to eliminate ongoing operating costs and to
generate a tax benefit in excess of the remaining book value of the
property.
Financing activities for the first nine months of fiscal 1997 used
approximately $2.7 million of cash. Dividend payments were $0.7
million, stock repurchases amounted to $0.9 million and long-term debt
was reduced by $1.2 million. In March 1997, the Company replaced it's
$11 million long-term revolving credit facility with Bank of Boston,
N.A. and $10 million informal bank credit line with State Street Bank
and Trust Company with a new $20 million long-term revolving credit
facility involving both of the banks. At June 28, 1997, the Company had
approximately $13.8 million of borrowing capacity available under the
new revolving credit facility. Under the new facility, the Company can
borrow at either LIBOR plus 3/4% or the bank's money market rates
(6.25% at June 28, 1997). The new facility contains restrictive
covenants comparable to the prior revolving credit facility, including
provisions related to the maintenance of working capital, the incurring
of additional indebtedness and a quarterly test of cash flow to debt
service. It also provides for a commitment fee of 1/4% per annum on the
unused portion.
In November 1996, the Company announced a program to repurchase up to
$3 million of its common shares. In April 1997, the Board of Directors
voted to extend the program through October 1997. Through the end of
June 1997, the Company acquired 54,182 shares of common stock at an
average cost of $16.28 per share under this program. There have been no
purchases by the Company since April 1997.
Page 11 of 14
COURIER CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES (CONTINUED):
--------------------------------------------
On July 21, 1997, the Company acquired all of the outstanding capital
stock of Book-mart Press, Inc. ("Book-mart"), a North Bergen, New
Jersey book manufacturer specializing in short to medium runs of
softcover and hardcover books. Book-mart had sales last year of
approximately $11 million. The Company paid approximately $12.7 million
in cash to the former stockholders of Book-mart for their shares of
capital stock. At the time of the closing, Book-mart had approximately
$2.3 million of outstanding bank indebtedness which was subsequently
paid in full. In connection with the acquisition, 11,111 shares of
Courier common stock (based upon a valuation of $18 per share) were
issued to two key executives of Book-mart for non-compete agreements.
In addition, one of such executives was issued 16,667 shares (subject
to a four-year vesting schedule) in connection with an employment
agreement. The acquisition will be accounted for as a purchase and,
accordingly, the results of operations will be included in the
consolidated financial statements from July 21, 1997 forward. The
acquisition is expected to be immediately accretive to the Company's
net income.
The purchase price was determined in an arm's-length negotiation and
was financed using the Company's existing credit facility with
BankBoston, N.A. and State Street Bank and Trust Company. The amount
available under this facility was extended from $20 million to $30
million in contemplation of the transaction. The facility was also used
by the Company to repay the approximately $2.3 million of Book-mart's
existing bank debt subsequent to the consummation of the acquisition.
Page 12 of 14
COURIER CORPORATION
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
------- --------------------------------
(a) Exhibits
Exhibit No. Description of Exhibit
----------- ----------------------
27 Financial Data Schedule
(b) Reports on Form 8-K
A Form 8-K dated August 5, 1997 reporting under Item 2 the acquisition
of all of the outstanding stock of Book-mart Press, Inc.
Page 13 of 14
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company
has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
COURIER CORPORATION
-------------------
(Registrant)
August 11, 1997 By: /s/James F. Conway III
------------------------ -------------------------------------
Date James F. Conway III
Chairman, President and
Chief Executive Officer
August 11, 1997 By: /s/Robert P. Story, Jr.
------------------------ -------------------------------------
Date Robert P. Story, Jr.
Senior Vice President and
Chief Financial Officer
August 11, 1997 By: /s/Peter M. Folger
------------------------ -------------------------------------
Date Peter M. Folger
Vice President and
Chief Accounting Officer
Page 14 of 14
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-27-1997
<PERIOD-START> SEP-29-1996
<PERIOD-END> JUN-28-1997
<CASH> 25
<SECURITIES> 0
<RECEIVABLES> 21,980<F1>
<ALLOWANCES> 994
<INVENTORY> 10,755
<CURRENT-ASSETS> 35,011
<PP&E> 97,622
<DEPRECIATION> 63,159
<TOTAL-ASSETS> 73,957
<CURRENT-LIABILITIES> 21,305
<BONDS> 0
0
0
<COMMON> 4,500
<OTHER-SE> 35,311<F2>
<TOTAL-LIABILITY-AND-EQUITY> 73,957
<SALES> 95,271
<TOTAL-REVENUES> 95,271
<CGS> 75,672
<TOTAL-COSTS> 75,672
<OTHER-EXPENSES> 15,186
<LOSS-PROVISION> 187
<INTEREST-EXPENSE> 531
<INCOME-PRETAX> 3,695
<INCOME-TAX> 1,123
<INCOME-CONTINUING> 2,572
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,572
<EPS-PRIMARY> 1.26
<EPS-DILUTED> 1.26
<FN>
<F1> Receivables are net of allowances for uncollectible accounts.
<F2> Other SE includes treasury stock.
</FN>
</TABLE>
