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 28, 1998
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)
(828) 879-6500
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
As of June 28, 1998, the number of common shares outstanding was 1,572,403.
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ALBA-WALDENSIAN, INC.
Consolidated Balance Sheets
($000's)
<TABLE>
<CAPTION>
June 28, December 31,
1998 1997
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash $6 $2,416
Accounts receivable, net of allowance for
doubtful accounts of $344 and $260, respectively 8,734 7,823
Inventories:
Materials and supplies 3,187 2,554
Work-in-process 6,152 5,045
Finished goods 1,392 3,710
----- -----
Total Inventories 10,731 11,309
------ ------
Deferred income taxes 707 707
Prepaid expenses and other 356 127
--- ---
Total Current Assets 20,534 22,382
------ ------
PROPERTY AND EQUIPMENT 33,043 31,111
Less: accumulated depreciation (18,730) (17,857)
------- ------
Net Property and Equipment 14,313 13,254
------ ------
OTHER ASSETS:
Notes receivable 15 17
Trademarks and patents 460 492
Excess of cost over net assets acquired 7,180 7,474
----- -----
7,655 7,983
----- -----
TOTAL ASSETS $42,502 $43,619
====== ======
</TABLE>
See notes to consolidated financial statements.
<PAGE>
ALBA-WALDENSIAN, INC.
Consolidated Balance Sheets
($000's except share amounts)
<TABLE>
<CAPTION>
June 28, December 31,
1998 1997
---- ----
(Unaudited)
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt $ 538 $ 2,350
Accounts payable 3,116 3,118
Accrued expenses 1,850 1,542
----- -----
Total Current Liabilities 5,504 7,010
LONG-TERM DEBT (Note 2) 8,704 7,452
CAPITAL LEASE OBLIGATION 71 -
DEFERRED INCOME TAX LIABILITY 1,746 1,746
----- -----
Total Liabilities 16,025 16,208
------ ------
STOCKHOLDERS' EQUITY:
Common stock - authorized 3,000,000 shares,
$2.50 par value; issued: 1,886,580 shares in 1998
and 1997; outstanding: 1,572,403 and 1,867,403
in 1998 and 1997, respectively 4,716 4,716
Additional paid-in capital 9,182 9,182
Retained earnings 15,044 13,650
------ ------
28,942 27,548
Less treasury stock - at cost
(314,177 and 19,177 shares in 1998 and 1997,
respectively) (2,465) (137)
----- ----
Total Stockholders' Equity 26,477 27,411
------ ------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $42,502 $43,619
====== ======
</TABLE>
See notes to consolidated financial statements.
<PAGE>
ALBA-WALDENSIAN, INC.
Consolidated Statements of Operations
(Unaudited)
($000's except share amounts)
<TABLE>
<CAPTION>
Three Months Ended Six Month Period Ended
June 28, June 29, June 28, June 29,
1998 1997 1998 1997
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net sales $17,714 $15,872 $36,010 $29,813
Cost of sales 13,196 12,372 27,022 23,309
------ ------ ------ ------
Gross margin 4,518 3,500 8,988 6,504
Selling, general and
administrative expense 3,222 3,000 6,264 6,541
----- ----- ----- -----
Operating income (loss) 1,296 500 2,724 (37)
Interest expense (220) (245) (435) (534)
Interest income 18 8 50 27
Other (41) 130 (92) (169)
-- ------- ---- -----
Total other income (expense) (243) (107) (477) (676)
-
Income (loss) before income taxes 1,053 393 2,247 (713)
Provision for (benefit from)
income taxes 400 149 854 (271)
----- --- --- -----
Net income (loss) $ 653 $244 $1,393 $(442)
======= === ====== ======
Net income (loss) per
common share -
Basic $ .38 $.13 $.78 $(.24)
=== === ==== ======
Diluted $ .36 $.13 $.76 $(.24)
=== ==== ==== ======
</TABLE>
See notes to consolidated financial statements.
<PAGE>
ALBA-WALDENSIAN, INC.
Consolidated Statements of Stockholders' Equity
(Unaudited)
($000's except share amounts)
<TABLE>
<CAPTION>
Additional
Common Paid-In Retained Treasury Stock
Shares Amount Capital Earnings Shares Amount Total
------ ------ ------- -------- ------ ------ -----
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at January 1, 1997 1,886,580 $4,716 $9,182 $14,027 (19,177) $(137) $27,788
Net Loss (442) (442)
--- ---
Balance at June 29, 1997 1,886,580 $4,716 $9,182 $13,585 (19,177) $(137) $27,346
========= ===== ===== ====== ====== === ======
Balance at January 1, 1998 1,886,580 $4,716 $9,182 $13,651 (19,177) $(137) $27,412
Purchase of Treasury Stock (295,000) (2,328) (2,328)
Net Income 1,393 1,393
----- -----
Balance at June 28, 1998 1,886,580 $4,716 $9,182 $15,044 (314,177) $(2,465) $26,477
========= ===== ===== ====== ======= ===== ======
</TABLE>
See notes to consolidated financial statements.
<PAGE>
ALBA-WALDENSIAN, INC.
Consolidated Statements of Cash Flows
(Unaudited)
($000's)
<TABLE>
<CAPTION>
Six Month Periods Ended
June 28, June 29,
1998 1997
<S> <C> <C>
---- ----
OPERATING ACTIVITIES:
Net income (loss) $ 1,393 $ (442)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization 1,216 1,146
Provision for bad debts 90 75
Loss on disposal of property 2 157
Provision for inventory obsolescence 441 423
Changes in operating assets and liabilities providing (using) cash:
Accounts receivable (1,001) (864)
Refundable income taxes -- (121)
Inventories 137 69
Prepaid expenses and other (229) 42
Accounts payable (90) 74
Accrued expenses and other liabilities 308 636
Income taxes payable 88 (169)
Deferred compensation 1 (172)
- ---
Net cash provided by operating activities 2,356 854
----- ---
INVESTING ACTIVITIES:
Capital expenditures (1,770) (1,456)
Proceeds from sale of property - 193
Proceeds from notes receivable 2 6
- -
Net cash used in investing activities (1,768) (1,257)
----- -----
FINANCING ACTIVITIES:
Net borrowings under line of credit agreement 5,490 1,296
Principal payments on notes and Capital Leases (9,824) (1,175)
Proceeds from Issuance of Long Term Debt 3,664 -
Repurchase of Capital Stock (2,328) -
------- -
Net cash (used in) provided by financing activities (2,998) 121
------- ---
NET DECREASE IN CASH (2,410) (282)
CASH AT BEGINNING OF PERIOD 2,416 294
----- ---
CASH AT END OF PERIOD $ 6 $ 12
= ==
</TABLE>
<PAGE>
ALBA-WALDENSIAN, INC.
Consolidated Statements of Cash Flows
(Unaudited)
($000's)
<TABLE>
<CAPTION>
Six Month Periods Ended
June 28, June 29,
1998 1997
---- ----
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
<S> <C> <C>
Cash paid during the period for:
Interest $ 365 $ 479
Income taxes $ 766 $ 20
</TABLE>
See notes to consolidated financial statements.
<PAGE>
ALBA-WALDENSIAN, INC.
Notes to Consolidated Financial Statement
(Unaudited)
1. UNAUDITED FINANCIAL INFORMATION
In the opinion of the Company, the accompanying unaudited consolidated
financial statements contain all adjustments necessary to present fairly the
financial position as of June 28, 1998, and the results of operations for the
three-month and six-month periods ended June 28, 1998, and June 29, 1997. These
unaudited financial statements should be read in conjunction with the Company's
most recent audited financial statements.
The results of operations for the interim periods are not necessarily
indicative of the results to be expected for the full year.
2. BANK DEBT
On December 31, 1997 the Company had both a $3,000,000 seasonal line of
credit and long-term debt agreements with a major bank. The interest rate was
LIBOR plus 2.75%. The seasonal line of credit was scheduled to mature on June
30, 1998, and the long-term debt portion matured on January 5, 1999. There were
no amounts outstanding under the seasonal line of credit at December 31, 1997.
Quarterly principal payments of $587,500 were required under the long-term debt
agreement.
On May 14, 1998, the Company entered into three-year $21,000,000
financing facility with a major bank and retired both the seasonal line of
credit and long-term debt discussed above. The new facility is composed of up to
a $15,000,000 revolving loan, based upon levels of accounts receivable and
inventories, a $3,000,000 term loan and a $3,000,000 credit line to fund future
capital expenditures. The new facility bears interest at Prime plus 0.5% (or at
the option of the Company, portions of the facility may be priced at LIBOR plus
2.5%) and is secured by substantially all of the assets of the Company.
The loan agreement contains requires that the Company maintain certain
levels of tangible net worth and fixed charge coverage ratios as well as
limiting the level of capital expenditures ($5.8 million in 1998) and
prohibiting other financing (in excess of $1.5 million per year). At June 28,
1998 the Company was in compliance with the convenants contained in the loan
agreement.
3. NON-RECURRING CHARGES
During the first quarter of 1997, severance costs of approximately
$401,000 were recorded in connection with the Company's former President and
CEO.
4. ACQUISITION OF COMMON STOCK
On May 15, 1998, investors, including the Company and Mr. Clyde Wm. Engle,
the Company's Chairman and beneficial holder (through Sunstates Corporation) of
a majority of the Company's common stock, purchased from a major bank 938,700
shares of the Company's common stock formerly held by Sunstates Corporation,
pursuant to a private sale of collateral held under a defaulted loan which the
Company's affiliates had with the bank. The Company purchased 295,000 of the
shares at a cost of $2,212,500 plus other estimated transaction costs totaling
$150,000. The Company utilized its existing cash plus funds obtained from the
new $21,000,000 financing facility discussed above to purchase the stock. The
Company intends to hold the 295,000 shares as treasury stock and currently has
no plans for future utilization of those shares.
As a result of these transactions, the Company is no longer a subsidiary of
Sunstates Corporation. Mr. Engle now controls approximately 35% of the Company's
outstanding common stock.
5. SUBSEQUENT EVENT
On August 4, 1998 the Company declared a semi-annual cash dividend of $.075
per share ($117,930) on its common stock payable on August 24, 1998 to
shareholders of record on August 14, 1998. Under the Company's loan agreement
with a bank (see Note 2), dividends may not exceed $787,500 during the
three-year term of the loan.
6. EARNINGS PER SHARE
<TABLE>
<CAPTION>
For the Quarter Ended June 28, 1998
Income Shares Per-Share
(Numerator) (Denominator) Amount
<S> <C> <C> <C>
Basic EPS
Net Income $652,849 1,724,766 $.38
Effect of Dilutive Securities
Stock Options -- 67,750
Diluted EPS
Net Income $652,849 1,792,516 $.36
</TABLE>
<TABLE>
<CAPTION>
For the Six Months Ended June 28, 1998
Income Shares Per-Share
(Numerator) (Denominator) Amount
<S> <C> <C> <C>
Basic EPS
Net Income $1,393,476 1,794,889 $.78
Effect of Dilutive Securities
Stock Options -- 33,875
Diluted EPS
Net Income $1,393,476 1,828,764 $.76
</TABLE>
There were no dilutive securities outstanding during 1997.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Liquidity and Capital Resources
The Company's working capital has remained substantially unchanged from
December 31, 1997, and continues to be adequate to support the Company's
operations. On June 28, 1998, the Company had working capital of $15,030,000
with a ratio of 3.73 to1. This is comparable to $15,372,000 or 3.19 to 1 at
December 31, 1997. The decrease in the amount of working capital reflects the
Company's concerted efforts to reduce inventory levels, which have declined to
$10,731,000 at June 28, 1998, from $11,309,000 at December 31, 1997.
Furthermore, the Company's annual debt amortization requirements are
significantly reduced (current maturities of $538,000 at June 1998 versus
$2,350,000 at December 1997) as a result of the refinancing of its bank debt.
Liquidity needs are primarily affected by and related to capital
expenditures and changes in the Company's business volume. Capital expenditures
through the first six months of 1998 have totaled $1,770,000, reflecting the
acquisition of new seamless knitting machines in response to the increased
demand for the Company's new seamless intimate apparel products. This level of
capital expenditures compares to $1,456,000 for the same six months of 1997.
The Company anticipates that capital expenditures for the entire year of 1998
may exceed $5,000,000.
The Company's liquidity needs, including the stock repurchase, have
been more than adequately provided for with the securing of a new three-year
$21,000,000 financing facility with a major bank (see Note 4 of Notes to
Consolidated Financial Statements). The new financing facility provides a
revolving loan of up to $15,000,000, depending upon levels of accounts
receivable and inventories, a term loan of $3,000,000 and a future capital
expenditure line of $3,000,000. In addition, the Company may secure other
outside financing of capital expenditures of up to $4,500,000 over the
three-year term of the facility.
The purchase on May 15, 1998 of 295,000 shares of the Company's common
stock for approximately $2,362,500 (see Note 4 of Notes to Consolidated
Financial Statements) reduced the company's net worth. However, the acquisition
price per share of $7.50 was significantly less than the Company's book value
per share ($15.08 at March 29, 1998) and accordingly the net book value of the
remaining outstanding shares was increased. At June 28, 1998, the book value per
share of the Company's remaining outstanding common stock was $16.84 per share.
On August 4, 1998 the Company declared a semi-annual cash dividend of
$.075 per share ($117,930) on its common stock payable on August 24, 1998 to
shareholders of record on August 14, 1998. Under the Company's loan agreement
with a bank, dividends may not exceed $787,500 during the three-year term of the
loan.
<PAGE>
Results of Operations
Items as a percentage of sales are reflected in the following table:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 28, June 29, June 28, June 29,
1998 1997 1998 1997
---- ---- ---- ----
(%)
<S> <C> <C> <C> <C>
Net sales 100.0 100.0 100.0 100.0
Cost of sales 74.5 78.0 75.0 78.2
---- ---- ---- ----
Gross margin 25.5 22.0 25.0 21.8
Selling, general and
administrative expenses 18.2 18.9 17.4 21.9
---- ---- ---- ----
Operating income (loss) 7.3 3.1 7.6 (0.1)
Other income (expense), net (1.4) (0.6) (1.3) (2.3)
--- --- --- ---
Income before income taxes 5.9 2.5 6.2 (2.4)
Provision for income taxes 2.2 0.9 2.3 (0.9)
--- --- --- ---
Net income (loss) 3.7 1.6 3.9 (1.5)
</TABLE>
Three Months Ended June 28, 1998 and June 29, 1997
Net sales by division for the second quarter of 1998 compared to the
second quarter of 1997 are set forth in the following table ($000's):
<TABLE>
<CAPTION>
Three Month Period Ended
June 28, June 29, Increase/ % Increase/
1998 1997 (Decrease) (Decrease)
---- ---- ---------- ----------
<S> <C> <C> <C> <C>
Health Products $7,950 $8,130 ($180) (2.2%)
Consumer Products 9,740 6,726 3,014 44.8%
Byford 24 1,016 ($992) (97.6%)
-- ----- ------
Total $17,714 $15,872 $1,842 11.6%
</TABLE>
Sales of Consumer Products increased $3,014,000 during the second
quarter, or 44.8%, over the comparable quarter of 1997. This increase results
primarily from continuing acceptance of the Company's seamless intimate apparel,
led by a new seamless bodysuit introduced in the first quarter. However, even
without the new seamless bodysuits, sales in the second quarter of 1998 were up
10% over the second quarter of 1997. Sales in the Consumer Products Division in
1997 were down due to the loss of circular knit panty business to lower priced
imports and the decision to eliminate the full fashion panty line.
Sales of Health Products decreased $180,000 or 2.2% due to slower than
anticipated acceptance of the Company's redesigned PulStar system.
The decline in Byford sales reflects the Company's decision in the
third quarter of 1997 to no longer distribute the line of men's socks and
sweaters due to poor profitability.
Gross margins increased in 1998 to 25.5% of net sales (22.0% in 1997)
as the result of increased volume, higher margins on new styles and cost
controls.
Selling, general and administrative expenses declined (as a percentage
of net sales) from 18.9% in 1997 to 18.2% in 1998, primarily reflecting the
impact of increased volumes.
Interest expense decreased as a result of lower long-term debt and less
borrowing under the line of credit agreement during the period partially offset
by higher (1%) interest rate in 1998.
Other income in the second quarter of 1997 included several minor
non-recurring gains, including a gain from the sale of certain of the Company's
yarn covering equipment, reflective of a decision to purchase covered yarn from
outside vendors at a lower cost.
As a result of the foregoing, the Company recorded net income of
$653,000 or $0.38 per share in 1998 as compared to income of $244,000 or $.13
per share in 1997.
Six Months Ended June 28, 1998 and June 29, 1997
Net sales by division for the six months of 1998 compared to 1997 are
set forth in the following table ($000's):
<TABLE>
<CAPTION>
Six Month Period Ended
June 28, June 29, Increase/ % Increase/
1998 1997 (Decrease) (Decrease)
---- ---- ---------- ----------
<S> <C> <C> <C> <C>
Health Products $16,373 $15,791 $582 3.7%
Consumer Products 19,541 12,012 7,529 62.7%
Byford 96 2,010 ($1,914) (95.2%)
-- ---- --------
Total $36,010 $29,813 $6,197 20.8%
</TABLE>
Sales of Consumer Products increased $7,529,000 during 1998, or 62.7%,
over 1997. This increase results primarily from continuing acceptance of the
Company's seamless intimate apparel, led by a new seamless bodysuit introduced
in the first quarter. However, even without the new seamless bodysuit, sales for
1998 were up 18% over 1997. Sales in the Consumer Products Division in 1997 were
down due to the loss of circular knit panty business to lower priced imports and
the decision to eliminate the full fashion panty line.
Sales of Health Products increased $582,000 or 3.7% due to strong sales
of treads and cuffs partially offset by shortfalls in sales of stockinette,
dressings and the PulStar system.
The decline in Byford sales reflects the Company's decision in the
third quarter of 1997 to no longer distribute the line of men's socks and
sweaters due to poor profitability.
Gross margins increased in 1998 to 25.0% of net sales (21.8% in 1997)
as the result of increased volume, higher margins on new styles and cost
controls.
Selling, general and administrative expenses declined (as a percentage
of net sales) from 21.9% in 1997 to 17.4% in 1998, primarily reflecting the
impact of increased volumes. Also, included in 1997 expenses was a one-time
charge of approximately $400,000 to record the severance arrangement with the
Company's former President and CEO.
Interest expense decreased as a result of lower long-term debt and less
borrowing under the line of credit agreement during the period partially offset
by higher (1%) interest rate in 1998.
Other expense in 1997 included one-time charges to write-off the full
fashion equipment ($143,000), the write-off of a deposit on a canceled machinery
order ($80,000) and to write down the carrying value of the idle Alba plant that
is being held for sale ($48,000). Other income in 1997 included several minor
non-recurring gains, including a gain from the sale of certain of the Company's
yarn covering equipment, reflective of a decision to purchase covered yarn from
outside vendors at a lower cost.
As a result of the foregoing, the Company recorded net income of $1,393,000
or $.78 per shares in 1998 as compared to a loss of $442,000 or $.24 per share
in 1997.
THIS QUARTERLY REPORT ON FORM 1O-Q, INCLUDING ANY INFORMATION INCORPORTATED
THEREIN BY REFERENCE, MAY CONTAIN, IN ADDITION TO HISTORICAL INFORMATION,
CERTAIN FORWARD-LOOKING STATEMENTS THAT INVOLVE SIGNIFICANT RISKS AND
UNCERTAINTIES. SUCH FORWARD-LOOKING STATEMENTS ARE BASED ON MANAGEMENT'S BELIEF
AS WELL AS ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO,
MANAGEMENT PURSUANT TO THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995. FORWARD-LOOKING STATEMENTS CAN GENERALLY BE
IDENTIFIED AS SUCH BECAUSE THE CONTEXT OF THE STATEMENT USUALLY WILL INCLUDE
WORDS SUCH AS "THE COMPANY BELIEVES"; OR "ANTICIPATES", OR "EXPECTS"; OR WORDS
OF SIMILAR IMPORT. SIMILARLY, STATEMENTS THAT DESCRIBE THE COMPANY'S FUTURE
PLANS, OBJECTIVES, ESTIMATES OR GOALS ARE ALSO FORWARD-LOOKING STATEMENTS. SUCH
STATEMENTS ADDRESS FUTURE EVENTS AND CONDITIONS CONCERNING CAPITAL EXPENDITURES,
EARNINGS, SALES, LIQUIDITY AND CAPITAL RESOURCES, AND ACCOUNTING MATTERS.
THE COMPANY'S ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE EXPRESSED IN, OR
IMPLIED BY, THE FORWARD-LOOKING STATEMENTS CONTAINED HEREIN. FACTORS THAT COULD
CAUSE OR CONTRIBUTE TO SUCH DIFFERENCES INCLUDE, BUT ARE NOT LIMITED TO, THOSE
DISCUSSED IN ITEM 1 - DESCRIPTION OF BUSINESS; AND ELSEWHERE IN THE COMPANY'S
ANNUAL REPORT ON FORM 1O-K FOR THE YEAR ENDED DECEMBER 31, 1997, OR IN
INFORMATION INCORPORATED THERIN BY REFERENCE, AS WELL AS FACTORS SUCH AS FUTURE
ECONOMIC CONDITIONS, ACCEPTANCE BY CUSTOMERS OF THE COMPANY'S PRODUCTS, CHANGES
IN CUSTOMER DEMAND, LEGISLATIVE, REGULATORY AND COMPETITIVE DEVELOPMENTS IN
MARKETS IN WHICH THE COMPANY OPERATES AND OTHER CIRCUMSTANCES AFFECTING
ANTICIPATED REVENUES AND COSTS. THE COMPANY UNDERTAKES NO OBLIGATION TO RELEASE
PUBLICLY THE RESULT OF ANY REVISIONS TO THESE FORWARD LOOKING STATEMENTS THAT
MAY BE MADE TO REFLECT EVENTS OR CIRCUMSTANCES AFTER THE DATE OF THIS ANNUAL
REPORT ON FORM 1O-K OR TO REFLECT THE OCCURRENCE OF OTHER ANTICIPATED EVENTS.
<PAGE>
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on FORM 8-K
a. Exhibits
27. Financial Data Schedule (filed in electronic format only)
b. 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 there unto duly authorized.
ALBA-WALDENSIAN, INC.
Date: August 10, 1998 /s/ Glenn J. Kennedy
--------------------
Vice President and Treasurer
(Chief Financial Officer and
Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-28-1998
<CASH> 6
<SECURITIES> 0
<RECEIVABLES> 9,074
<ALLOWANCES> 344
<INVENTORY> 10,731
<CURRENT-ASSETS> 20,534
<PP&E> 33,043
<DEPRECIATION> 18,730
<TOTAL-ASSETS> 42,502
<CURRENT-LIABILITIES> 5,504
<BONDS> 0
0
0
<COMMON> 4,716
<OTHER-SE> 21,761
<TOTAL-LIABILITY-AND-EQUITY> 42,502
<SALES> 36,010
<TOTAL-REVENUES> 36,010
<CGS> 27,022
<TOTAL-COSTS> 33,286
<OTHER-EXPENSES> 92
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 435
<INCOME-PRETAX> 2,247
<INCOME-TAX> 854
<INCOME-CONTINUING> 1,393
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,393
<EPS-PRIMARY> 0.78
<EPS-DILUTED> 0.76
</TABLE>
