UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20459
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 30, 1996
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 1-6150
ALBA-WALDENSIAN, INC.
(Exact name of registrant as specified in its Charter)
Delaware 56-0359780
(State or other jurisdiction (I.R.S.Employer Identification No.)
of incorporation or organization)
P.O. Box 100, Valdese, N.C. 28690
(Address of principal executive offices)
(Zip Code)
(704) 874-2191
Registrant's telephone number, including area code
NONE
Former name, former address and former fiscal year, if changed since last
report.
Indicate by check mark whether 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
APPLICABLE ONLY TO CORPORATE USERS
Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of the latest practicable date.
As of June 30, 1996, the number of common shares outstanding was 1,867,403.
<PAGE>
ALBA-WALDENSIAN, INC. AND SUBSIDIARIES
INDEX
PAGE
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets 1-2
June 30, 1996 and December 31, 1995
Condensed Consolidated Statements of Current 3
and Retained Earnings for the Three Month and Six
Periods Ended June 30, 1996 and July 2, 1995
Condensed Consolidated Statements of Cash 4-5
Flows for the Six Month Period Ended
June 30, 1996 and July 2, 1995
Notes to Condensed Consolidated Financial 6-9
Statements
Item 2. Management's Discussion and Analysis of 10-12
Financial Condition and Results of Operation
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 13-14
Signatures 15
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ALBA-WALDENSIAN, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
June 30, December 31,
1996 1995 (1)
ASSETS (Unaudited)
CURRENT ASSETS:
Cash $ 13,898 $ 56,009
Accounts receivable,net 9,946,589 9,391,137
Refundable income taxes, net 285,613 437,453
Notes receivable 22,642 21,704
Inventories:
Materials 3,336,931 3,171,091
Work-in-process 5,086,047 4,749,829
Finished goods 8,033,697 7,237,050
Total inventories,net 16,456,675 15,157,970
Prepaid expenses and other 329,903 379,373
Deferred income taxes 480,850 480,850
Total Current Assets 27,536,170 25,924,496
PROPERTY AND EQUIPMENT 30,593,752 29,979,572
LESS ACCUMULATED DEPRECIATION (17,093,482) (16,204,174)
Property, Plant and
Equipment, Net 13,500,270 13,775,398
OTHER ASSETS:
Goodwill(Note 2) 8,642,721 8,957,001
Notes receivable 56,766 60,421
Trademarks and patents 255,948 281,082
Cash value-life insurance 0 331,617
Total Other Assets 8,955,435 9,630,121
TOTAL ASSETS $49,991,875 $49,330,015
(1) The balance sheet at December 31, 1995 has been taken from
the audited consolidated financial statements at that date.
See notes to consolidated condensed financial statements.
1
<PAGE>
ALBA-WALDENSIAN, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
June 30, December 31,
1996 1995(1)
(Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Short term borrowings and lines of credit(Note 3) $2,609,665 $1,267,600
Current maturities of long-term debt(Note 4) 2,350,000 2,350,000
Current maturities of capital lease obligations 0 58,069
Accounts payable 2,918,188 2,773,542
Accrued liabilities:
Labor and profit-sharing 901,173 517,286
Property and payroll taxes 247,836 247,453
Group health claims - estimated 40,139 188,143
Other 541,259 481,801
Income taxes payable 64,990 0
Total Current Liabilities 9,673,250 7,883,894
LONG-TERM DEBT (Note 4) 11,087,500 12,262,500
CAPITAL LEASE OBLIGATIONS - -
DEFERRED COMPENSATION 271,647 330,086
DEFERRED INCOME TAXES 1,385,019 1,385,019
Total Liabilities 22,417,416 21,861,499
COMMITMENTS AND CONTINGENCIES(Notes 2,3, and 4)
STOCKHOLDERS' EQUITY:
Common stock - authorized
3,000,000 shares, $2.50 par
value; issued: 1,886,580 shares
in 1996 and 1995; outstanding:
1,867,403 and 1,867,403 shares
in 1996 and 1995, respectively 4,716,450 4,716,450
Additional paid-in capital 9,182,158 9,182,158
Retained earnings 13,812,487 13,706,544
Total 27,711,095 27,605,152
Less treasury stock - at cost
(19,177 and 19,177 shares in
1996 and 1995, respectively) (136,636) (136,636)
Total Stockholders' Equity 27,574,459 27,468,516
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $49,991,875 $49,330,015
(1) The balance sheet at December 31, 1995 has been taken from the audited
consolidated financial statements at that date.
See notes to consolidated condensed financial statements.
2
<PAGE>
ALBA-WALDENSIAN,INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Current
And Retained Earnings
(Unaudited)
<TABLE>
<CAPTION>
Three Month Period Ended Six Month Period Ended
June 30, July 2, June 30, July 2,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
CURRENT EARNINGS:
Net sales $ 16,296,147 $ 16,252,148 $ 33,675,183 $ 30,630,412
Cost of sales 12,503,941 12,385,693 25,759,634 23,649,262
Gross profit 3,792,206 3,866,455 7,915,549 6,981,150
Selling, general and
administrative expenses 3,478,158 3,228,768 7,117,141 6,186,644
Operating income 314,048 637,687 798,408 794,506
Interest expense (313,707) (391,925) (613,748) (522,367)
Interest income 2,553 5,908 6,593 8,784
Other 5,504 (145,263) (20,320) (136,560)
Total other income(expense) (305,650) (531,280) (627,475) (650,143)
Income before income taxes 8,398 106,407 170,933 144,363
Provision for income taxes 3,192 42,712 64,990 54,858
Net income $ 5,206 $ 63,695 $ 105,943 $ 89,505
Weighted average number of shares
of common stock outstanding 1,867,403 1,864,403 1,867,403 1,863,890
Net income per common share $ .01 $ .03 $ .06 $ .04
RETAINED EARNINGS:
Balance at beginning of period $ 13,807,281 $ 15,389,448 $ 13,706,544 $ 15,361,763
Net income 5,206 63,695 105,943 89,505
Exercise of stock options 0 0 0 1,875
Balance at end of period $ 13,812,487 $ 15,453,143 $ 13,812,487 $ 15,453,153
</TABLE>
See notes to consolidated condensed financial statements.
3
<PAGE>
ALBA-WALDENSIAN, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Six Month Periods Ended
June 30, July 2,
1996 1995
OPERATING ACTIVITIES:
Net income $ 105,943 $ 89,505
Adjustments to reconcile net income
to net cash used in operating activities:
Depreciation and amortization 914,442 946,597
Goodwill amortization 314,280 151,500
Provision for bad debts, net of recoveries 50,725 67,761
Realized loss (gain) on sale of property 0 170,000
Provision for inventory obsolescence 228,290 375,391
Changes in operating assets and
liabilities providing (using) cash:
Accounts receivable (606,177) 18,161
Refundable income taxes 151,840 0
Inventories (1,526,995) (444,711)
Prepaid expenses and other 381,087 (456,545)
Accounts payable 144,646 (121,758)
Accrued and other liabilities 295,724 351,719
Income taxes payable 64,990 46,195
Deferred compensation (58,439) 20,082
Net cash provided by (used in) operating activities 460,356 1,213,897
INVESTING ACTIVITIES:
Capital expenditures (614,180) (822,017)
Payment for purchase of Balfour Healthcare 0 (14,956,086)
Proceeds from sale of property 0 0
Proceeds from notes receivable 2,717 16,263
Net cash used in investing activities (611,463) (15,761,840)
FINANCING ACTIVITIES:
Net borrowings (payments) under line
of credit agreements 1,342,065 292,414
Issuance of long term debt 0 15,000,000
Principal payments on notes and leases (1,233,069) (771,604)
Cash proceeds from exercise of stock options 0 10,781
Net cash provided by (used in) financing activities 108,996 14,531,591
NET INCREASE ( DECREASE) IN CASH (42,111) (16,352)
CASH AT BEGINNING OF PERIOD 56,009 103,952
CASH AT END OF PERIOD $ 13,898 $ 87,600
4
<PAGE>
ALBA-WALDENSIAN, INC. AND SUBSIDIARIES
Consolidated Condensed Statements of Cash Flows
(Unaudited)
Six Month Period Ended
June 30, July 2,
1996 1995
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the year for:
Interest $ 604,158 $ 487,597
Income Taxes $ 0 $ 12,333
See notes to consolidated condensed financial statements.
5
<PAGE>
ALBA-WALDENSIAN, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statement
For the Six and Three Periods Ended June 30, 1996 and July 2, 1995
(Unaudited)
1. UNAUDITED FINANCIAL INFORMATION
In the opinion of the Company, the accompanying unaudited Consolidated
Condensed Financial Statements contain all adjustments necessary to present
fairly the financial position as of June 30, 1996 and the results of operations
for the six and three month periods ended June 30, 1996 and July 2, 1995. The
financial statements are presented as permitted by the instructions to Form 10-Q
and Article 10 of regulation S-X. The accounting policies followed by the
company are set forth in the Company's Annual Report on Form 10-K which is
incorporated by reference.
The results of operations for the six and three month period ended June
30, 1996 are not necessarily indicative of the results to be expected for the
full year. These unaudited financial statements should be read in conjunction
with the Company's most recent audited financial statements.
The three month period for 1996 began April 1, 1996 and ended June 30,
1996. The three month period for 1995 began April 3, 1995 and ended July 2,
1995. The six month period for 1996 began January 1, 1996 and ended June 30,
1996. The six month period for 1995 began January 1, 1995 and ended July 2,
1995.
2. ACQUISITION
On March 6, 1995, the company acquired the Balfour Healthcare Division of
Kayser-Roth Corporation and manufacturing facility in Rockwood, Tennessee
("Balfour") for approximately $15.3 million. The Company financed 100% of the
acquisition price with a revolving loan agreement provided by a bank (See Note
4).
The acquisition has been accounted for using the purchase method of accounting.
The excess of the purchase price over the estimated fair value of the net assets
acquired (goodwill) of $9.428 million is amortized on a straight line basis over
15 years.
The results of operation of the Balfour are included in the accompanying
financial statements since the effective date of the acquisition. The following
unaudited pro forma summary presents the information as if the acquisition had
occurred at the beginning of 1995 after giving effect to certain adjustments,
including amortization of goodwill and interest expense from debt issued to fund
the acquisition and related income tax effects. The total interest expense
included in this pro forma summary is $658,000 in 1995 and $614,000 in 1996.
Goodwill amortization is $314,000 in 1996 and $151,500 in 1995. This pro forma
summary is provided for information purposes only. It is based on historical
information and does not necessarily reflect the actual results that would have
occurred nor is it necessarily indicative of future results of operations.
6
<PAGE>
<TABLE>
<CAPTION>
Actual Pro-forma
Six Month Periods Ended June 30, 1996 July 2, 1995
(Amounts in thousands of dollars, except per share data)
<S> <C> <C>
Net Sales $ 33,675.2 $ 33,285.4
Net Income 105.9 142.9
Earnings per common share $ .06 $ .08
</TABLE>
3. SHORT TERM BORROWINGS AND LINES OF CREDIT
The Company has an agreement with a bank which provides a seasonal line
of credit of up to 5,000,000. In addition this line of credit provides a
sublimit of $1,000,000 to support import letters of credit. Interest is accrued
at the LIBOR rate plus 1 3/4% at June 30,1996. The amount outstanding at June
30, 1996, and December 31, 1995 was $2,609,665 and $1,267,600, respectively. The
line of credit commitment will be automatically reduced by $1,000,000 on both
May 31, 1998 and March 31, 1999. Indebtedness under this agreement is
collateralized by equipment and accounts receivable.
4. LONG TERM DEBT
Long term debt is comprised of:
June 30, December 31
1996 1995
Note Payable-Equipment Loan(a) $ 750,000 $ 1,000,000
Note Payable-Balfour Purchase(b) 12,687,500 13,612,500
Total 13,437,500 14,612,500
Less:Current Maturities 2,350,000 2,350,000
Total Long Term Debt $11,087,500 $12,262,500
(a) Pursuant to a fixed rate term loan agreement dated February 12,
1993, this $2,000,000 note was used to purchase new equipment. Interest accrues
at 6.3% fixed rate and principal payments are made quarterly with the final
payment due December 31, 1997.
(b) Pursuant to variable loan rate term loan agreement dated March 6,
1995, this $15,000,000 note was used to purchase the Balfour Healthcare Division
from Kayser-Roth Corporation. Interest accrues at the rate of LIBOR plus 2% at
June 30, 1996. Principal payments are being made quarterly and began June 30,
1995 with the final payment due June 30, 2000. This loan agreement contains
various loan covenants, as defined, which include maintaining a minimum tangible
net worth, a minimum cash flow and leverage ratio and a limit on capital
spending. The agreement also maintains that any cash dividends paid will not
cause default of any loan covenant as a result of paying those dividends.
7
<PAGE>
The Company has an outstanding interest rate swap agreement under
which the Company receives a variable rate based on LIBOR and pays a fixed rate
of 7.95% on a notional amount of $3,868,561, as determined in one month
intervals through November 31, 1998. The transaction effectively changes a
portion of the Company's interest rate exposure from a variable rate to a fixed
rate. The Company is exposed to a credit loss in the event of nonperformance by
the other party to the interest rate swap agreement. However, the Company does
not anticipate nonperformance by the counterparty.
A substantial portion of the Company's property and equipment, and
accounts receivable are pledged as collateral for the long term debt.
The annual principal maturites of the long term debt at June 30, 1996
were as follows:
1996 $ 1,175,000
1997 2,350,000
1998 2,350,000
1999 2,350,000
2000 5,212,500
Total $ 13,437,500
5. EARNINGS PER SHARE
Net income per common share is calculated on the weighted average number of
shares of common stock outstanding during the period. The effect of dilutive
common stock equivalents is immaterial.
6. LICENSE AGREEMENTS
The Company has a licensing agreement with Coats Viyella International,
UK, in which it is obligated to pay a 5% royalty on all sales of product under
the Byford Apparel label that is not produced by Coats Viyella plus 2.5% on all
sales of Smithsonian Institute product. The Company also has an agreement with
Mr. Ray Shaw, which obligates to Company to pay a 5% royalty on all product sold
under the BBW(R) label.
In connection with the purchase of Balfour Health Products, the Company
is obligated to pay Ms. Ada Shapiro a royalty of 5% of sales up to $1,000,000,
2.5% of sales from $1,000,000 to $2,000,000, and 1.5% of sales over $2,000,000
on two styles of diabetic socks produced by Alba Health Products.
The Company has a licensing agreement with harve' bernard LTD to
manufacture and market a collection of intimate apparel. The Company is
obligated to pay a 5% royalty on all sales of harve' bernard brand product with
a minimum payment of $4,417 per month.
8
<PAGE>
The Company has three other licensing agreements within the Byford
division. A 8% royalty is paid to the United States Golf Association on sales of
product for the U.S Open Golf Championship. The Smithsonian Institute receives a
royalty on sales of related products of 5.5% on sales to $1,000,000 and 7% of
sales above $1,000,000 with a minimum of $10,000 in royalty from the time period
of January 1, 1996 to June 30, 1997. The Greg Norman Division of Reebock
International Limited receives a royalty of 8% of net sales of related product
with a minimum royalty of $55,000 from July 1, 1996 until December 31, 1997. The
minimum increases to $104,000 in 1998 and $150,000 in 1999.
9
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Liquidity and Capital Resources
The Company has good liquidity. On June 30, 1996, the Company had a
current working capital ratio of 2.85 to 1 and working capital of $17,862,920.
This ratio was down from 3.54 to 1 at July 2, 1995 primarily due to a decrease
in inventories and an increase in short term borrowings.
Liquidity needs are primarily affected by and related to capital expenditures
and increased levels of accounts receivable due to the Company's growth. These
needs are adequately being met through available working capital, and are
supplemented by a short-term line of credit of $5,000,000, to cover fluctuations
, as well as a $2,000,000 equipment term loan. In addition, the Company issued
$15,000,000 of long-term debt on March 6, 1995 to purchase the assets of Balfour
Health Products which consisted of accounts receivable, building and equipment,
and inventory.
Results of Operations
Three Month Periods Ended June 30, 1996, and July 2, 1995
Net sales by division for the second quarter of 1996 compared to the
second quarter of 1995 are set forth in the following table.
<TABLE>
<CAPTION>
Three Month Period Ended
June 30 July 2 Increase/ %Increase
1996 1995 (Decrease) (Decrease)
<S> <C> <C> <C> <C>
Consumer Products $ 6,778,000 $ 6,181,773 $ 596,227 9.7%
Health Products 8,033,509 8,438,147 (404,638) (4.8%)
Alba Direct 410,411 607,576 (197,165) (32.5%)
Byford 1,074,233 1,008,611 65,622 6.5%
AWI Retail (6) 16,041 (16,047) (100.0%)
Total $ 16,296,147 $ 16,252,148 $ 43,999 2.7%
</TABLE>
Net Sales as shown in the table above increased by $43,999 or 2.7%.
Consumer Products sales increased primarily as a result of increased sales to
existing customers. Health Products sales declined as a result of weaker sales
to one of its major customers. Alba Direct sales declined as a result of weaker
sales to its domestic and Japanese customers. The Byford Division sales
increased due to increased sock sales. Sweater sales within the Byford Division
actually decreased for the period
Gross Profits for the second quarter of 1996 decreased by $74,249 over
the second quarter of 1995 as a result of sales mix. Although sales increased,
primarily due to the increase in Consumer Products sales, this division has
lower margins than the Health Products and Alba Direct divisions.
10
<PAGE>
Selling, General and Administrative expenses ( as a percentage of sales)
increased from 19.9% in the second quarter of 1995 to 21.3% in the second
quarter of 1996. The primary causes of the increase were contract programming
cost, increase distribution cost caused by smaller shipments, and increases in
salaries and commissions.
Operating income decreased by $323,639 or 50.8% as compared to the
second quarter of 1995. The decrease in operating income, as discussed above,
was caused by lower gross profits and higher selling, general and administrative
expenses.
Total other income/expense aggregated $305,650 of expense as compared to
$531,280 of expense in 1995. Other expense was lower due to a decrease in
interest expense. The Company also had a $170,000 write-down of the value of its
Main Street plant in 1995, such a write-down did not occur in 1996.
Net Income after taxes for the three month period decreased by $58,489
or 91.8%, due to the reasons discussed above.
Six Month Periods Ended June 30, 1996 and July 2, 1995
Net Sales by division for the first six month period of 1996 as compared
to the first six month period of 1995 are set forth in the following table:
<TABLE>
<CAPTION>
Six Month Period Ended
June 30 July 2 Increase/ %Increase
1996 1995 (Decrease) (Decrease)
<S> <C> <C> <C> <C>
Consumer Product $ 13,877,352 $ 12,860,451 $ 1,016,901 7.9%
Health Products 16,720,183 14,545,707 2,174,476 15.0%
Alba Direct 938,693 1,037,821 (99,128) (9.6%)
Byford 2,124,183 2,167,282 (43,099) (2.0%)
AWI Retail 14,772 19,151 ( 4,379) (22.9%)
Total $ 33,675,183 $ 30,630,412 $ 3,044,771 9.9%
</TABLE>
Net sales as shown in the table above, increased by $3,044,771 or 9.9%
Consumer Products sales increased primarily as a result of increased sales to
existing customers. Health Products sales increased as a result of the Balfour
acquisition in March, 1995. The division's sales represent six months of
Balfour sales in 1996, as compared to approximately four months in 1995. Alba
Direct sales declined as a result of weaker sales to its domestic and Japanese
customers. The Byford sales decreased due to a continued weakness in sweater
sales.
Gross Profits for the six moths increased by $934,399 or 13.8% as
compared to a similar period in 1995. Gross profits increased as a result of the
increased sales volume, as discussed above.
11
<PAGE>
Selling, General, and Administrative expenses(as a percentage of sales)
increased from 20.2% in 1995 to 21.1% in 1996. This increase was primarily due
to an increase in goodwill amortization expense, contract programming cost,
salaries, commissions, and an increase in distribution cost caused by smaller
order shipments.
Operating income increased by $3,902 or .5% as compared to the first six
months of 1995. The increase in operating income, as discussed above, was caused
by an increase in sales partially offset by increased Selling, General and
Administrative cost.
Total other income/expense aggregated expense of $627,475 as compared to
expense of $650,143 in 1995. Interest expense increased by $91,381 due to six
months of interest on the bank loan for the Balfour acquisition, compared to
approximately four months in 1995. The increased interest expense was offset by
$170,000 write-down of the value of the Company's Main Street plant in 1995,
such a write-down did not occur in 1996.
Net income after taxes for the first six months of 1996 increased by
$16,438 or 18.4% as compared to the first six moths of 1995, due to the reasons
discussed above.
Items as a percentage of sales are reflected in the following table:
<TABLE>
<CAPTION>
Three Month Periods Ended Six Month Periods Ended
June 30, July 2, June 30, July 2,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Net sales 100.0% 100.0% 100.0% 100.0%
Cost of sales 76.7% 76.2% 76.5% 77.2%
Gross margin 23.3% 23.8% 23.5% 22.8%
Selling, general and
administrative expenses 21.3% 19.9% 21.1% 20.2%
Operating income 2.0% 3.9% 2.4% 2.6%
Other income (expense), net (1.9%) (3.3%) 1.9% 2.1%
Income before income taxes 0.1% 0.6% 0.5% 0.5%
Provision for income taxes 0.0% 0.3% 0.2% 0.2%
Net Income 0.1% 0.3% 0.3% 0.3%
</TABLE>
12
<PAGE>
PART II. OTHER INFORMATION
Items 1,2,3,4, and 5 are inapplicable and have been omitted.
Item 6. Exhibits and Reports on FORM 8-K
a. Exhibits
11. Computation of earnings per share
27. Financial Data Schedule(filed in electronic format only)
b. Form 8-K
None Reported
13
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned there unto duly authorized.
ALBA-WALDENSIAN, INC. AND SUBSIDIARIES
Date:_________ _________________________________________
Thomas I. Nail
Chief Financial Officer and
Principal Accounting Officer
14
<PAGE>
EXHIBIT 11
ALBA-WALDENSIAN, INC. AND SUBSIDIARIES
Calculation of Primary and Fully Dilutive Earnings Per Share
(unaudited)
<TABLE>
<CAPTION>
Three Month Period Ended Six Month Period Ended
June 30, July 2, June 30, July 2,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Primary Earning Per Share
Weighted average number of common
shares outstanding 1,867,403 1,864,403 1,867,403 1,863,890
Net Income(Loss) $ 5,206 $ 63,695 $ 105,943 $ 89,505
Primary Earning Per Share $ .01 $ .03 $ .06 $ .04
Fully Dilutive Earning Per Share
Weighted average number of common
shares outstanding 1,867,403 1,864,403 1,867,403 1,863,890
Common Stock Equivalents(Options) 1,567 12,192 1,567 17,300
1,868,061 1,885,528 1,868,061 1,881,190
Net Income(Loss) $ 5,206 $ 63,695 $ 105,943 $ 89,505
Fully dilutive Earnings Per Share $ .01 $ .03 $ .06 $ .04
</TABLE>
15
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 13,898
<SECURITIES> 0
<RECEIVABLES> 9,946,589
<ALLOWANCES> 0
<INVENTORY> 16,456,675
<CURRENT-ASSETS> 27,536,170
<PP&E> 30,593,752
<DEPRECIATION> 17,093,482
<TOTAL-ASSETS> 49,991,875
<CURRENT-LIABILITIES> 9,673,250
<BONDS> 0
0
0
<COMMON> 4,716,450
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 49,991,875
<SALES> 33,675,183
<TOTAL-REVENUES> 33,681,776
<CGS> 25,759,634
<TOTAL-COSTS> 32,876,775
<OTHER-EXPENSES> 20,320
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 613,748
<INCOME-PRETAX> 170,933
<INCOME-TAX> 64,990
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 109,943
<EPS-PRIMARY> .06
<EPS-DILUTED> .06
</TABLE>
