<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 26, 1999
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 of (I.R.S. Employer Identification No.)
incorporation or organization)
15 Wellman Avenue,
North Chelmsford, Massachusetts 01863
(Address of principal executive offices) (zip code)
(978) 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 4, 1999
Common Stock, $1 par value 3,232,699 shares
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Page 1 of 12
<PAGE>
COURIER CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
<TABLE>
<CAPTION>
June 26, September 26,
ASSETS 1999 1998
- ------ -------------- --------------
<S> <C> <C>
Current assets:
Cash and cash equivalents $1,859 $722
Accounts receivable, less allowance
for uncollectible accounts 27,047 27,941
Inventories (Note B) 12,008 10,828
Deferred income taxes 1,752 1,758
Other current assets 418 847
-------------- --------------
Total current assets 43,084 42,096
Property, plant and equipment, less
accumulated depreciation: $74,985
at June 26, 1999 and $69,102
at September 26, 1998 29,643 33,257
Real estate held for sale or lease, net 323 336
Goodwill and other intangibles, net 10,925 11,421
Other assets 513 520
-------------- --------------
Total assets $84,488 $87,630
-------------- --------------
-------------- --------------
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
Page 2 of 12
<PAGE>
COURIER CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
<TABLE>
<CAPTION>
June 26, September 26,
LIABILITIES AND STOCKHOLDERS' EQUITY 1999 1998
- ------------------------------------ --------------- ----------------
Current liabilities:
<S> <C> <C>
Current maturities of long-term debt $325 $312
Accounts payable 8,592 9,294
Accrued payroll 4,401 4,319
Accrued taxes 4,114 4,935
Other current liabilities 6,169 6,709
--------------- ----------------
Total current liabilities 23,601 25,569
Long-term debt (Note E) 1,288 6,781
Deferred income taxes 2,517 2,992
Other liabilities 2,614 2,498
--------------- ----------------
Total liabilities 30,020 37,840
--------------- ----------------
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
3,750,000 shares 3,750 3,750
Additional paid-in capital 761 384
Retained earnings 53,566 49,464
Treasury stock, at cost: 514,000 shares
at June 26, 1999 and 578,000
shares at September 26, 1998 (3,609) (3,808)
--------------- ----------------
Total stockholders' equity 54,468 49,790
--------------- ----------------
Total liabilities and stockholders' equity $84,488 $87,630
--------------- ----------------
--------------- ----------------
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
Page 3 of 12
<PAGE>
COURIER CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands except per share amounts)
<TABLE>
<CAPTION>
QUARTER ENDED NINE MONTHS ENDED
-------------------- ----------------------
June 26, June 27, June 26, June 27,
1999 1998 1999 1998
--------- --------- ---------- -----------
<S> <C> <C> <C> <C>
Net sales $40,731 $36,903 $120,512 $111,345
Cost of sales 30,925 27,591 91,144 84,007
--------- --------- ---------- -----------
Gross profit 9,806 9,312 29,368 27,338
Selling and administrative expenses 6,998 6,806 21,187 20,217
Interest expense 121 317 423 1,037
Other income (Note F) -- 2,043 -- 2,043
--------- --------- ---------- -----------
Income before taxes 2,687 4,232 7,758 8,127
Provision for income taxes (Note C) 861 1,660 2,645 2,987
--------- --------- ---------- -----------
Net income $1,826 $2,572 $5,113 $5,140
--------- --------- ---------- -----------
--------- --------- ---------- -----------
Net income per share (Note D):
Basic $0.57 $0.82 $1.60 $1.67
--------- --------- ---------- -----------
--------- --------- ---------- -----------
Diluted $0.55 $0.79 $1.54 $1.59
--------- --------- ---------- -----------
--------- --------- ---------- -----------
Cash dividends declared per share $0.105 $0.093 $0.315 $0.280
--------- --------- ---------- -----------
--------- --------- ---------- -----------
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
Page 4 of 12
<PAGE>
COURIER CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in thousands)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
----------------------
June 26, June 27,
1999 1998
---------- ----------
<S> <C> <C>
Cash provided from operating activities $ 9,412 $ 5,417
---------- ----------
Investment activities:
Capital expenditures (2,273) (3,336)
Proceeds from sale of assets (Note F) -- 4,600
Business acquisition -- (563)
---------- ----------
Cash provided from (used for) investment activities (2,273) 701
---------- ----------
Financing activities:
Repayment of long-term debt (230) (311)
Decrease in long-term borrowings (5,250) (5,753)
Cash dividends (1,011) (865)
Proceeds from stock plans 489 814
---------- ----------
Cash used for financing activities (6,002) (6,115)
---------- ----------
Increase in cash and cash equivalents 1,137 3
Cash at the beginning of the period 722 27
---------- ----------
Cash at the end of the period $ 1,859 $ 30
---------- ----------
---------- ----------
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
Page 5 of 12
<PAGE>
COURIER CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
UNAUDITED FINANCIAL STATEMENTS
The balance sheet as of June 26, 1999, the statements of income for the
three-month and nine-month periods ended June 26, 1999 and June 27,
1998, and the statements of cash flows for the nine-month periods ended
June 26, 1999 and June 27, 1998 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 1998 have
been reclassified in the accompanying financial statements in order to
be consistent with the current year's classification.
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 26, 1998 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 26, 1998.
NEW ACCOUNTING PRONOUNCEMENTS
Effective September 27, 1998, the Company adopted Statement of
Financial Accounting Standards (SFAS) No. 130, "Reporting Comprehensive
Income", and SFAS No. 132, "Employer Disclosures about Pensions and
Other Postretirement Benefits". The adoption of SFAS No. 130 was not
material to the consolidated financial statements due to a lack of any
items defined as other comprehensive income by SFAS No. 130. The
adoption of SFAS No. 132 was also not material to the consolidated
financial statements. The Financial Accounting Standards Board has
issued SFAS No. 131, "Disclosure about Segments of an Enterprise and
Related Information", which will be effective for the Company's Annual
Report for the fiscal year ending September 25, 1999, and SFAS No. 133,
"Accounting for Derivative Instruments and Hedging Activities" (as
amended by SFAS No. 137 in June 1999), which will be effective in the
Company's fiscal year ending September 29, 2001. The Company does not
expect that the implementation of these new standards will be material
to the 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 most
inventories. Inventories consisted of the following:
<TABLE>
<CAPTION>
(000's Omitted)
------------------------
June 26, September 26,
1999 1998
------- -------
<S> <C> <C>
Raw materials $3,327 $3,171
Work in process 5,164 4,903
Finished goods 3,517 2,754
------- -------
Total inventories $12,008 $10,828
------- -------
------- -------
</TABLE>
Page 6 of 12
<PAGE>
COURIER CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
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:
<TABLE>
<CAPTION>
(000's Omitted)
Quarter Ended Nine Months Ended
------------------ --------------------
June 26, June 27, June 26, June 27,
1999 1998 1999 1998
-------- ------- ------- -------
<S> <C> <C> <C> <C>
Federal income taxes at
statutory rate $914 $1,439 $2,638 $2,764
State income taxes, net 52 258 167 334
Goodwill amortization 43 43 129 129
Export related income (222) (65) (343) (169)
Other 74 (15) 54 (71)
-------- ------- ------- -------
Total provision $861 $1,660 $2,645 $2,987
-------- ------- ------- -------
-------- ------- ------- -------
</TABLE>
D. NET INCOME PER SHARE
Following is a reconciliation of the shares used in the calculation of
basic and diluted net income per share. Potentially dilutive shares,
calculated using the treasury stock method, consist of shares issued
under the Company's stock option and stock grant plans.
<TABLE>
<CAPTION>
(000's Omitted)
Quarter Ended Nine Months Ended
------------------- -------------------
June 26, June 27, June 26, June 27,
1999 1998 1999 1998
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Average shares outstanding for basic 3,225 3,119 3,198 3,087
Effect of potentially dilutive shares 98 146 118 138
-------- -------- -------- --------
Average shares outstanding for diluted 3,323 3,265 3,316 3,225
-------- -------- -------- --------
-------- -------- -------- --------
</TABLE>
E. LONG-TERM DEBT
In February 1999, the Company extended the maturity date of its $30
million long-term revolving credit facility for one year to February
2001.
F. OTHER INCOME
In June 1998, the Company completed the sale of a former industrial
facility in Philadelphia which had been vacant. During fiscal 1997, the
Company had completed the consolidation of its operations in
Philadelphia from this older facility to a recently expanded, more
efficient manufacturing facility also in Philadelphia. The selling
price of the facility was $4.6 million, resulting in a pretax gain of
approximately $2.0 million. The after-tax gain of approximately $1.1
million, or $.34 per diluted share, generated approximately $3.2
million of cash after taxes.
Page 7 of 12
<PAGE>
ITEM 2. COURIER CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS:
Sales in the third quarter of fiscal 1999 increased 10% to $40.7 million
compared to $36.9 million in the third quarter of fiscal 1998. Sales from the
Company's core book manufacturing segment were up 10% to $40.3 million for the
quarter primarily due to increased sales to religious and educational publishing
customers. The Company's customized education segment consists of The Home
School and Copyright Management Services (CMS). The Home School, which was
acquired on September 30, 1997, is a direct marketer of books and other
educational products for supplementing or replacing traditional education with
home-based learning. CMS provides customized coursepacks and copyright clearance
services primarily to colleges and universities. Revenues from these two newer
businesses grew more than 50% during the third quarter to $0.4 million. The
Company's fourth quarter historically represents the period of highest market
demand for these educationally oriented ventures.
Gross profit increased to $9.8 million, or 24% of sales, in the third quarter
compared to $9.3 million, or 25% of sales, in the same period last year. The
increase in gross profit reflects the impact of the increased sales volume.
Selling and administrative expenses increased to $7.0 million in the third
quarter from $6.8 million in the same period last year. However, as a percentage
of sales, selling and administrative expenses decreased to 17% in the third
quarter compared to 18% of sales in the corresponding period last year.
Interest expense was $121,000 in the third quarter of fiscal 1999 compared to
$317,000 in the same period last year, reflecting a reduction in average
borrowings of approximately $13 million as well as a slightly lower average
interest rate.
Other income in the third quarter of fiscal 1998 represented a gain from the
sale of a former industrial facility in Philadelphia which had been vacant.
The selling price of the facility was $4.6 million, resulting in a pretax
gain of approximately $2.0 million and an after-tax gain of approximately
$1.1 million, or $.34 per diluted share.
The Company's effective tax rate for the third quarter was 32% compared to 39%
in the third quarter last year. The decrease was due to state and local taxes in
the prior year related to the sale of the Philadelphia facility, as well as an
increased benefit from export related income in fiscal 1999.
Net income for the third quarter of fiscal 1999 was approximately $1.8
million, up 24% over last year's third quarter earnings of approximately $1.4
million, when adjusted to exclude the after-tax gain from the sale of real
estate of approximately $1.1 million, or $.34 per diluted share. Net income
per share on a diluted basis increased 22% to $.55 per share compared to the
corresponding period last year, after adjusting to exclude the real estate
gain. Net income in the third quarter of 1998, including the real estate
gain, was $2.6 million, or $.79 per diluted share. Earnings from the
Company's core book manufacturing operations increased to $2.3 million, 13%
over last year's third quarter, reflecting increased sales volume. The
Company's newer businesses, CMS and The Home School, reduced third quarter
earnings by $.14 per diluted share compared to a reduction of $.17 per
diluted share for the same period last year. Revenues and related earnings
for these businesses, both of which are highly seasonal, are expected to
increase in the fourth quarter coinciding with the months of highest market
demand.
Weighted average shares outstanding increased approximately 58,000 shares over
last year's third quarter largely due to options exercised under the Company's
stock option plans.
For the nine months ended June 26, 1999, the Company reported net income of
approximately $5.1 million, up 27% compared to the same period last year,
after excluding the gain from the sale of real estate. Net income per share
on a diluted basis increased 23% to $1.54 per share compared to the
corresponding period last year, adjusted to exclude the real estate gain. Net
income for the first nine months of 1998, including the real estate gain, was
$5.1 million, or $1.59 per diluted share. Sales for the first nine months were
$120.5 million, up 8% from $111.3 million in the corresponding period of
fiscal
Page 8 of 12
<PAGE>
COURIER CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS (CONTINUED):
1998. The factors impacting third quarter results similarly affected
year-to-date results. Sales from the Company's core book manufacturing
operations increased by 8% to $119.3 million, while related earnings
increased by 20% to $6.7 million compared to the first nine months of fiscal
1998. For the year to date, CMS and The Home School reduced earnings by $.47
per diluted share compared to $.48 per diluted share in the first nine months
of fiscal 1998.
Effective September 27, 1998, the Company adopted Statement of Financial
Accounting Standards (SFAS) No. 130, "Reporting Comprehensive Income", and
SFAS No. 132, "Employer Disclosures about Pensions and Other Postretirement
Benefits". The adoption of SFAS No. 130 was not material to the consolidated
financial statements due to a lack of any items defined as other
comprehensive income by SFAS No. 130. The adoption of SFAS No. 132 was also
not material to the consolidated financial statements. The Financial
Accounting Standards Board has issued SFAS No. 131, "Disclosure about
Segments of an Enterprise and Related Information", which will be effective
for the Company's Annual Report for the fiscal year ending September 25,
1999, and SFAS No. 133, "Accounting for Derivative Instruments and Hedging
Activities" (as amended by SFAS No. 137 in June 1999), which will be
effective in the Company's fiscal year ending September 29, 2001. The Company
does not expect that the implementation of these new standards will be
material to the consolidated financial statements.
LIQUIDITY AND CAPITAL RESOURCES:
During the first nine months of fiscal 1999, operations provided approximately
$9.4 million of cash. Net income was $5.1 million and depreciation and
amortization were $6.4 million. Working capital utilized approximately $1.8
million of cash, largely due to an increase in inventories of approximately $1.2
million.
Investment activities in the first nine months of fiscal 1999 used
approximately $2.3 million of cash for capital expenditures. For the entire
fiscal year, capital expenditures are expected to be approximately $5 to $7
million, which includes approximately $0.6 million related to Year 2000
issues. The Company's Raymond, New Hampshire facility, which had been leased
through June 1996, continues to be vacant pending sale or lease. In addition,
the Company intends to sell the unoccupied and underutilized portions of its
multi-building complex in Westford, MA, which would result in reductions in
building operating costs while maintaining current levels of book
manufacturing at the site.
Financing activities for the first nine months of fiscal 1999 used
approximately $6.0 million of cash, primarily for a $5.5 million reduction in
long-term debt. In addition, dividend payments were $1.0 million. At June 26,
1999, the Company had no borrowings under its $30 million long-term revolving
credit facility. In February 1999, the maturity date of the Company's
revolving credit facility was extended one year to February 2001. On June 29,
1999, the Company repurchased a block of 20,000 shares of its common stock
for $0.5 million because the Company believed the stock was attractively
priced.
YEAR 2000 ISSUE:
THE STATEMENTS IN THE FOLLOWING SECTION INCLUDE "YEAR 2000 READINESS DISCLOSURE"
WITHIN THE MEANING OF THE YEAR 2000 INFORMATION AND READINESS DISCLOSURE ACT.
Historically, many computer programs were written using two digits rather than
four to specify the year. Such software may recognize the year 2000 as "00"
which could result in computer system failures or miscalculations, commonly
referred to as the Year 2000 (Y2K) issue. The Company recognizes the need to
ensure that its operations will not be adversely impacted by a Year 2000
software failure. Incomplete or untimely resolution of the Y2K issue by the
Company, key suppliers, customers and other parties could have a material
adverse effect on the Company's results of operations, financial condition
Page 9 of 12
<PAGE>
COURIER CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
YEAR 2000 ISSUE (CONTINUED):
and cash flows. The Company established a Year 2000 Management Task Force to
address the Y2K issue. This Task Force is coordinating efforts to identify,
assess and implement changes to information technology ("IT") systems and
operational systems such as presses and binders, telecommunications equipment,
building security and environmental controls, and is evaluating the Y2K
readiness of key suppliers, customers and other parties.
Operational systems have been inventoried and assessment has been completed.
Less than 2% of operational systems were found to be non-compliant. Remediation
is in process and is expected to be completed by September 1999.
The Company has substantially completed inventories and assessments of its IT
systems in use at each of its locations and determined that many of the IT
systems were not compliant. The Company is in the process of replacing or
upgrading these systems with enterprise-wide systems across all of the Company's
operations, utilizing a common IT infrastructure which collectively is designed
to give the Company the benefit of new technology with enhanced functionality
and resultant improvements in service and productivity. The replacement of
non-compliant systems is complete at four locations. The remaining two locations
are in process and are expected to be completed on schedule before the end of
the fiscal year.
The Company is actively assessing the Y2K readiness of third parties
(including suppliers, financial institutions and customers) with which it has
a material relationship to identify potentially non-compliant parties. The
Company has performed site visits and is actively working with the key
suppliers of raw materials, such as paper mills and film and plate
manufacturers. The Company believes that its most reasonably likely,
worst-case Y2K scenario may involve non-compliant third parties, including
suppliers of utilities. The Company is assessing the degree of exposure and
risk of non-compliance by such third parties, which could include possible
consequences such as temporary plant disruptions and delays in the receipt of
key materials, the receipt of orders, the delivery of finished products and
the preparation of invoices. The Company is developing contingency plans
specific to these risks as it works with its key suppliers, customers and
other parties. The Year 2000 Task Force will be continually developing
contingency plans and monitoring the Y2K risks throughout 1999.
The Company continues to estimate the cost of achieving Y2K compliance to be
approximately $2 million of which approximately half will be capital
expenditures, primarily for new IT systems. Costs incurred in the first nine
months of fiscal 1999 directly related to Y2K remediation were approximately
$0.7 million bringing total costs to date to approximately $1.5 million, of
which approximately $0.8 million was expensed. The remainder of the Y2K costs
are expected to be incurred during fiscal 1999. The Y2K costs are expected to be
funded through operating cash flows and available credit facilities. The Company
does not separately track all of the internal costs incurred for the Y2K
project, particularly the related payroll costs of its engineering and
information technology groups.
FORWARD-LOOKING INFORMATION:
Statements that describe future expectations, plans or strategies are considered
forward looking. Such statements are subject to certain risks and uncertainties
which could cause actual results to differ materially from those currently
anticipated. Factors that could affect actual results include, among others,
changes in customers' demand for the Company's products, changes in raw material
costs and availability, seasonal changes in customer orders, pricing actions by
competitors, consolidation among customers, success in the integration of
acquired businesses, Year 2000 issues, and general changes in economic
conditions. Although the Company believes that the assumptions underlying the
forward-looking statements are reasonable, any of the assumptions could be
inaccurate, and therefore, there can be no assurance that the forward-looking
statements will prove to be accurate. The forward-looking statements included
herein are made as of the date hereof, and the Company undertakes no obligation
to update publicly such statements to reflect subsequent events or
circumstances.
Page 10 of 12
<PAGE>
COURIER CORPORATION
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
There have been no material changes from the information concerning the
Company's "Quantitative and Qualitative Disclosures About Market Risk" as
previously reported in the Company's Annual Report on Form 10-K for the year
ended September 26, 1998.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit No. Description of Exhibit
----------- ----------------------
27 Financial Data Schedule
(b) Reports on Form 8-K
None.
Page 11 of 12
<PAGE>
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 10, 1999 By: s/JAMES F. CONWAY III
- --------------------------- ---------------------------
Date James F. Conway III
Chairman, President and
Chief Executive Officer
AUGUST 10, 1999 By: s/ROBERT P. STORY, JR.
- --------------------------- ---------------------------
Date Robert P. Story, Jr.
Senior Vice President and
Chief Financial Officer
AUGUST 10, 1999 By: s/PETER M. FOLGER
- --------------------------- ---------------------------
Date Peter M. Folger
Vice President and
Chief Accounting Officer
Page 12 of 12
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-25-1999
<PERIOD-START> SEP-27-1998
<PERIOD-END> JUN-26-1999
<CASH> 1,859
<SECURITIES> 0
<RECEIVABLES> 27,047<F1>
<ALLOWANCES> 1,175
<INVENTORY> 12,008
<CURRENT-ASSETS> 43,084
<PP&E> 104,628
<DEPRECIATION> 74,985
<TOTAL-ASSETS> 84,488
<CURRENT-LIABILITIES> 23,601
<BONDS> 0
0
0
<COMMON> 3,750
<OTHER-SE> 50,718<F2>
<TOTAL-LIABILITY-AND-EQUITY> 84,488
<SALES> 120,512
<TOTAL-REVENUES> 120,512
<CGS> 91,144
<TOTAL-COSTS> 91,144
<OTHER-EXPENSES> 21,072
<LOSS-PROVISION> 115
<INTEREST-EXPENSE> 423
<INCOME-PRETAX> 7,758
<INCOME-TAX> 2,645
<INCOME-CONTINUING> 5,113
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,113
<EPS-BASIC> 1.60
<EPS-DILUTED> 1.54
<FN>
<F1>ACCOUNTS RECEIVABLE ARE NET OF ALLOWANCES
<F2>OTHER SE INCLUDES TREASURY STOCK
</FN>
</TABLE>
