<PAGE> 1
CONFORMED
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
AND EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1995
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
AND EXCHANGE ACT OF 1934
For the transition period from __________________ to _____________________
Commission file number 1-542
GROSSMAN'S INC.
- --------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 38-0524830
- ----------------------------------------- -----------------------
(State or other jurisdiction of (I.R.S. Employer
in corporation or organization) Identification No.)
200 Union Street
Braintree, Massachusetts 02184
- ----------------------------------------- -----------------------
(Address of principal executive offices) (Zip Code)
(617) 848-0100
- --------------------------------------------------------------------------
(Registrant's telephone number, including area code)
Not applicable
- --------------------------------------------------------------------------
(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 Sections 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter
periods 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 the issuer's classes of
common stock, as of the latest practicable date.
Common Stock - $.01 Par Value - 25,782,176 shares as of May 4, 1995,
exclusive of 355,171 shares held as treasury shares.
1
<PAGE> 2
GROSSMAN'S INC.
FORM 10-Q
QUARTER ENDED MARCH 31, 1995
INDEX
<TABLE>
<CAPTION>
Page Number
-----------
<S> <C>
PART I. FINANCIAL INFORMATION
- -----------------------------
ITEM 1. FINANCIAL STATEMENTS
GROSSMAN'S INC. AND SUBSIDIARIES
Consolidated Balance Sheets
March 31, 1995, December 31, 1994 and March 31, 1994.......... 3
Consolidated Statements of Operations
Three Months Ended March 31, 1995 and 1994.................... 5
Consolidated Statements of Cash Flows
Three Months Ended March 31, 1995 and 1994.................... 6
Notes to Unaudited Interim Consolidated Financial Statements.... 7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.................................. 10
PART II. OTHER INFORMATION
- --------------------------
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K........................... 14
SIGNATURES......................................................... 15
</TABLE>
2
<PAGE> 3
PART I. FINANCIAL INFORMATION
- -----------------------------
ITEM 1. FINANCIAL STATEMENTS
<TABLE>
GROSSMAN'S INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(Unaudited)
<CAPTION>
March 31, December 31, March 31,
1995 1994 1994
--------- ------------ ---------
<S> <C> <C> <C>
ASSETS
- ------
CURRENT ASSETS
Cash and cash equivalents $ 917 $ 3,034 $ 2,009
Receivables, less allowance of
$4,450 in 1995, $4,157 at
December 31, 1994 and $4,734
at March 31, 1994 for doubtful
accounts 14,529 19,449 14,932
Inventories 124,890 116,602 134,538
Other current assets 10,167 9,048 9,492
-------- -------- --------
Total current assets 150,503 148,133 160,971
PROPERTY, PLANT AND EQUIPMENT,
net of accumulated depreciation
of $59,473 in 1995, $61,435 at
December 31, 1994 and $60,866
at March 31, 1994 103,695 114,897 126,309
INVESTMENT IN AND ADVANCES TO
UNCONSOLIDATED AFFILIATE 1,020 1,896 1,489
OTHER ASSETS 1,413 1,694 2,166
-------- -------- --------
TOTAL ASSETS $256,631 $266,620 $290,935
======== ======== ========
</TABLE>
The accompanying notes are an integral part of these unaudited interim
consolidated financial statements.
3
<PAGE> 4
<TABLE>
GROSSMAN'S INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(Unaudited)
<CAPTION>
March 31, December 31, March 31,
1995 1994 1994
--------- ------------ ---------
<S> <C> <C> <C>
LIABILITIES AND
STOCKHOLDERS' INVESTMENT
CURRENT LIABILITIES
Accounts payable and accrued
liabilities $ 92,137 $ 89,816 $106,179
Accrued interest 696 1,555 1,322
Current portion of long-term debt
and capital lease obligations
14% Debentures, due
January 1, 1996 16,201 - -
Mortgage notes and capital
lease obligations 11,556 13,278 18,515
-------- -------- ---------
Total current liabilities 120,590 104,649 126,016
REVOLVING TERM NOTE PAYABLE 41,252 29,888 33,043
LONG-TERM DEBT AND CAPITAL LEASE
OBLIGATIONS 9,721 30,039 36,496
PENSION LIABILITY 3,827 4,348 15,480
OTHER LIABILITIES 12,131 17,051 15,173
--------- --------- ---------
Total liabilities 187,521 185,975 226,208
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' INVESTMENT
Common stock, $.01 par value:
Shares authorized - 50,000
Shares issued - 26,137 in 1995
and 1994 261 261 261
Additional paid-in-capital 155,840 155,840 155,842
Retained earnings (accumulated
deficit) (74,680) (64,008) (69,930)
Minimum pension liability (10,576) (10,576) (20,528)
Cumulative foreign currency
translation adjustment (872) - -
Less shares in treasury, at cost -
355 in 1995,
359 at December 31, 1994, and
378 at March 31, 1994 (863) (872) (918)
--------- --------- ---------
Total stockholders' investment 69,110 80,645 64,727
--------- --------- ---------
TOTAL LIABILITIES AND
STOCKHOLDERS' INVESTMENT $256,631 $266,620 $290,935
========= ========= =========
</TABLE>
The accompanying notes are an integral part of these unaudited interim
consolidated financial statements.
4
<PAGE> 5
<TABLE>
GROSSMAN'S INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
<CAPTION>
Three Months Ended
March 31,
-----------------------
1995 1994
---- ----
<S> <C> <C>
SALES $126,770 $135,076
COST OF SALES 95,777 101,465
--------- ---------
Gross Profit 30,993 33,611
OPERATING EXPENSES
Selling and administrative 37,702 37,335
Depreciation and amortization 3,011 3,157
Store preopening expense 135 192
--------- ---------
40,848 40,684
--------- ---------
OPERATING LOSS (9,855) (7,073)
OTHER EXPENSES (INCOME)
Interest expense 2,197 1,881
Other (392) (257)
--------- ---------
1,805 1,624
EQUITY IN NET LOSS OF UNCONSOLIDATED AFFILIATE 198 -
--------- ---------
LOSS BEFORE INCOME TAXES (11,858) (8,697)
CREDIT FOR INCOME TAXES (1,186) (870)
--------- ---------
NET LOSS $(10,672) $ (7,827)
========= =========
PER COMMON SHARE (PRIMARY AND FULLY DILUTED)
Net loss $ (0.41) $ (0.30)
========= =========
WEIGHTED AVERAGE SHARES AND EQUIVALENT
SHARES OUTSTANDING 25,782 25,725
========= =========
</TABLE>
The accompanying notes are an integral part of these unaudited interim
consolidated financial statements.
5
<PAGE> 6
<TABLE>
GROSSMAN'S INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, except per share data)
(Unaudited)
<CAPTION>
Three Months Ended
March 31,
-----------------------
1995 1994
---- ----
<S> <C> <C>
OPERATING ACTIVITIES:
Net loss $(10,672) $ (7,827)
Adjustments to reconcile net loss to net cash
(used for) operating activities:
Depreciation and amortization 3,011 3,157
Net gain on disposals of property (46) (38)
Provision for losses on account receivable 341 389
Undistributed loss of unconsolidated affiliate 198 -
(Increase) decrease in assets:
Receivables 4,579 5,430
Inventories (8,288) (12,718)
Other assets 480 234
Increase (decrease) in accounts payable and
accrued and other liabilities (3,984) 2,557
--------- ---------
Total adjustments (3,709) (989)
--------- ---------
NET CASH (USED FOR) OPERATING ACTIVITIES (14,381) (8,816)
INVESTING ACTIVITIES:
Capital expenditures (1,153) (1,027)
Proceeds from sales of property, net 9,243 1,483
Investment in unconsolidated affiliate (194) -
--------- ---------
NET CASH PROVIDED BY INVESTING ACTIVITIES 7,896 456
FINANCING ACTIVITIES:
Payments on long-term debt and capital lease
obligations (7,005) (1,958)
Proceeds from mortgage financings - 95
Net borrowings from revolving term note
payable 11,364 9,883
Issuance of common stock 9 186
--------- ---------
NET CASH PROVIDED BY FINANCING ACTIVITIES 4,368 8,206
Net decrease in cash and cash equivalents (2,117) (154)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 3,034 2,163
--------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 917 $ 2,009
========= =========
</TABLE>
The accompanying notes are an integral part of these unaudited interim
consolidated financial statements.
6
<PAGE> 7
GROSSMAN'S INC. AND SUBSIDIARIES
NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1995
NOTE 1 - BASIS OF PRESENTATION
- ------------------------------
The accompanying Unaudited Interim Consolidated Financial Statements have
been prepared in conformity with generally accepted accounting principles
applied on a consistent basis and, in the opinion of management, include
all adjustments, consisting of normal recurring accruals, necessary for a
fair presentation of the results for the interim periods. The results of
operations for the interim periods are not necessarily indicative of
results to be expected for the year.
These interim consolidated financial statements should be read in
conjunction with the consolidated financial statements and related notes
contained in the Annual Report on Form 10-K of Grossman's Inc. for the
year ended December 31, 1994. The balance sheet as of December 31, 1994
has been derived from the audited financial statements as of that date.
The Unaudited Interim Consolidated Financial Statements include the
accounts of Grossman's Inc. and its wholly-owned subsidiaries (the
"Company") after elimination of intercompany balances and transactions.
The Company's fiscal year end is December 31. The Company records
activity in quarterly accounting periods of equal length, ending on the
last Saturday of each quarter. The differences in amounts presented and
those which would have been presented using actual quarter end dates are
not material.
Certain amounts in the consolidated financial statements for prior years
have been reclassified to conform to the current year presentation. Such
reclassifications had no effect on previously reported results of
operations.
<TABLE>
NOTE 2 - LONG-TERM DEBT AND REVOLVING CREDIT AGREEMENT
- ------------------------------------------------------
Long-term debt consists of the following (in thousands):
<CAPTION>
March 31, December 31, March 31,
1995 1994 1994
--------- ------------ ----------
<S> <C> <C> <C>
14% Debentures, due January 1, 1996 $16,201 $16,201 $16,201
Mortgage notes 10,795 15,759 22,388
Capital lease obligations 10,482 11,357 16,422
------- ------- -------
37,478 43,317 55,011
Less current portion 27,757 13,278 18,515
------- ------- -------
$ 9,721 $30,039 $36,496
======= ======= =======
</TABLE>
7
<PAGE> 8
NOTE 2 - LONG-TERM DEBT AND REVOLVING CREDIT AGREEMENT (CONTINUED)
- ------------------------------------------------------------------
In March 1995, available borrowings, including letters of credit up to $15
million, under the Company's loan and security agreement with BankAmerica
Business Credit, Inc., were increased from $60 million to $75 million. At
March 31, 1995, cash borrowings under this revolving credit agreement
totalled $41.3 million and outstanding letters of credit totalled $11.5
million. The maximum total borrowings under this agreement during the
three months ended March 31, 1995 were $57.9 million, including letters of
credit of $11.5 million. The weighted average annual interest rate on
borrowings during the three months ended March 31, 1995 was 9.4%.
In March 1995, the Company sold its Manchester, Connecticut distribution
center, and repaid outstanding debt on the property of $4.2 million.
Additional related secured debt totalling $643 thousand is due in May
1995.
<TABLE>
NOTE 3 - ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
- -------------------------------------------------
Accounts payable and accrued liabilities consist of the following (in
thousands):
<CAPTION>
March 31, December 31, March 31,
1995 1994 1994
--------- ------------ ---------
<S> <C> <C> <C>
Accounts payable $62,368 $59,383 $ 74,317
Accrued salaries, wages,
commissions and related taxes 6,635 6,007 5,901
Accrued taxes other than income
and franchise 2,545 3,107 2,965
Accrued store closing costs 3,298 2,240 2,847
Accrued insurance 10,740 10,618 10,173
Other accrued liabilities 6,551 8,461 9,976
------- -------- --------
$92,137 $89,816 $106,179
======= ======= ========
</TABLE>
<TABLE>
NOTE 4 - OTHER LIABILITIES
- --------------------------
Other long-term liabilities consist of the following (in thousands):
<CAPTION>
March 31, December 31, March 31,
1995 1994 1995
--------- ------------ ---------
<S> <C> <C> <C>
Accrued insurance claims $ 7,889 $ 8,014 $ 9,424
Accrued store closing costs 3,572 8,307 5,014
Other accrued liabilities 670 730 735
------- ------- -------
$12,131 $17,051 $15,173
======= ======= =======
</TABLE>
8
<PAGE> 9
<TABLE>
NOTE 5 - INVESTMENT IN UNCONSOLIDATED AFFILIATE
- -----------------------------------------------
The Company has a 50% interest in a Mexican retailer of building materials
and related products. Summarized operational information for this joint
venture, which began operations in the second quarter of 1994, is as
follows (in thousands):
<CAPTION>
Three months ended
March 31, 1995
------------------
<S> <C>
Gross revenue $2,407
Cost of sales and expenses 2,803
-------
Net loss $ (396)
=======
Company's interest in net loss $ (198)
=======
</TABLE>
During the first quarter of 1995, the Company reduced its investment in
this joint venture by $872 thousand, and recorded a corresponding
adjustment to stockholders' investment, to reflect a devaluation of the
Mexican peso in relation to the U.S. dollar.
9
<PAGE> 10
ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FINANCIAL CONDITION
MARCH 31, 1995 COMPARED WITH DECEMBER 31, 1994
- ----------------------------------------------
The first quarter is one in which the Company prepares for the start of
the spring selling season. Financial condition at March 31, 1995 reflects
the buildup of inventory, a related increase in payables and term
financing, and the seasonal operating loss. In addition, during the first
quarter of 1995 the Company completed certain property sales and related
paydowns on long-term debt.
Working capital of $29.9 million declined by $13.6 million from the prior
year end, principally due to a $16.2 million reclassification to current
maturity of 14% Debentures, due January 1, 1996. Accounts receivable,
principally related to credit extended to contractors, declined by 25.3%,
consistent with the 28.0% decline for the corresponding period one year
ago. Inventory at March 31, 1995 totalled $124.9 million, representing a
7.1%, or $8.3 million, seasonal increase from year end. From one year
ago, inventory declined by 7.2%, reflecting 18 Eastern Division store
closings, offset in part by Contractors' Warehouse openings in Dayton,
Ohio in June 1994 and Indianapolis, Indiana in January 1995. Three
additional Contractors' Warehouse stores are planned to open later in
1995. Two Mr. 2nd's Bargain Outlets have also opened since one year ago,
in Woonsocket, Rhode Island and Schenectady, New York. The increase in
inventory was financed by a $3.0 million increase in accounts payable,
supplemented by borrowings under the Company's revolving credit agreement.
Borrowings under the revolving credit agreement, which were also used for
other seasonal requirements, increased by $11.4 million since year end.
During the quarter, the Company sold its Eastern Division Distribution
Center located in Manchester, Connecticut and repaid outstanding debt of
$4.2 million. Additional related secured debt totalling $643 thousand is
due in May 1995.
The Company continues to market properties vacated as a result of closing
a total of 40 stores since 1993. Of the 22 owned stores within this
group, nine were sold prior to 1995, two were sold in 1995, one in the
first quarter of 1995 and one early in the second quarter, three are under
agreement to be sold, and one was reopened as a Mr. 2nd's Bargain Outlet.
Of the 18 leased properties within this group, 10 leases have been
terminated, three leases are due to be terminated in 1995, and one store
was reopened as a Mr. 2nd's Bargain Outlet. Proceeds received in the
first quarter from the sale of the distribution center and the closed
store property totalled $9.2 million. It is anticipated that sales of the
remaining owned properties will be sold over a period of years, resulting
in a liquidity improvement at the time of each respective sale.
Property, plant and equipment declined by $11.2 million since year end,
reflecting property sales, offset in part by $1.2 million in capital
expenditures. Capital expenditures were made principally to support the
store openings.
10
<PAGE> 11
During the first quarter of 1995, the Company recorded an adjustment of
$872 thousand, reducing the investment in its 50% owned Mexican joint
venture, to reflect a devaluation of the Mexican peso in relation to the
U.S. dollar. A corresponding adjustment was made to stockholders'
investment.
RESULTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 1995 COMPARED WITH THREE MONTHS
ENDED MARCH 31, 1994
- ------------------------------------------------------------
The Company's first quarter historically has been a period of low sales
activity with resultant operating losses, as fewer do-it-yourself home
improvement projects and construction activities in the Company's markets
are undertaken during the winter months. First quarter sales have
historically been less than 20% of full year sales.
<TABLE>
The following table shows comparative sales results by store type (dollars
in millions):
<CAPTION>
Three Months
Ended March
------------------
1995 1994
---- ----
<S> <C> <C>
SALES
Grossman's Stores
Retail Sales $ 32.1 $ 43.4
Professional Sales 33.3 34.9
------ ------
Total Grossman's Stores 65.4 78.3
Mr. 2nd's Bargain Outlet Stores 10.3 8.5
------ ------
Total Eastern Division 75.7 86.8
Contractors' Warehouse Division 51.1 48.3
------ ------
Total $126.8 $135.1
====== ======
% OF TOTAL SALES
Grossman's Stores
Retail Sales 25.4% 32.1%
Professional Sales 26.2 25.8
------ ------
Total Grossman's Stores 51.6 57.9
Mr. 2nd's Bargain Outlet Stores 8.1 6.3
------ ------
Total Eastern Division 59.7 64.2
Contractors' Warehouse Division 40.3 35.8
------ ------
Total 100.0% 100.0%
====== ======
</TABLE>
11
<PAGE> 12
<TABLE>
THREE MONTHS ENDED MARCH 31, 1995 COMPARED WITH THREE MONTHS
ENDED MARCH 31, 1994 (CONTINUED)
- ------------------------------------------------------------
<CAPTION>
Three Months
Ended March
------------------
1995 1994
---- ----
<S> <C> <C>
SALES % INCREASE (DECREASE)
VERSUS PRIOR YEAR
Grossman's Stores
Retail Sales (26.0)% (18.1)%
Professional Sales (4.6) (16.5)
------- -------
Total Grossman's Stores (16.5) (17.4)
Mr. 2nd's Bargain Outlet Stores 21.2 (7.6)
------- -------
Total Eastern Division (12.8) (16.5)
Contractors' Warehouse Division 5.8 28.5
------- -------
Total (6.1)% (4.6)%
======= =======
COMPARABLE STORE SALES %
INCREASE (DECREASE)
VERSUS PRIOR YEAR
Grossman's Stores
Retail Sales (5.3)% (3.4)%
Professional Sales 14.8 13.3
------- -------
Total Grossman's Stores 4.0 3.4
Mr. 2nd's Bargain Outlet Stores 12.9 (4.9)
------- -------
Total Eastern Division 5.0 2.6
Contractors' Warehouse Division (6.6) 0.3
------- -------
Total 0.3 % 1.9 %
======= =======
TOTAL NUMBER OF STORES
Grossman's Stores 72 89
Mr. 2nd's Bargain Outlet Stores 20 18
Contractors' Warehouse Division 13 11
------- -------
Total Number of Stores 105 118
======= =======
</TABLE>
Sales and operating results in the three months ended March 31, 1995
were affected by the following:
- - The 1994 sales results include stores closed in the latter part of
1994.
- - During the majority of the first quarter of 1995, nearly all Eastern
Division stores were undergoing remodeling designed to better
attract professional customers.
12
<PAGE> 13
- - The 1995 sales results include the results of two Contractors'
Warehouse stores and two Mr. 2nd's Bargain Outlet stores which were
not open during the comparable period in 1994. Contractors'
Warehouse stores were opened in Dayton, Ohio in June 1994 and in
Indianapolis, Indiana in January 1995. Mr. 2nd's Bargain Outlet
stores were opened in Woonsocket, Rhode Island in December 1994 and
in Schenectady, New York in March 1995.
- - Sales results were affected by declining selling prices for wood
building materials, which represent over 25% of the Company's sales
mix. Commodity lumber prices have declined as much as 30% since one
year ago.
- - In California, heavy rainfall during the months of January and March
1995 dampened sales. The renovation of most affected homes, often
dependent on both receipt of insurance proceeds and dryer building
conditions, is not expected to begin until later in the second
quarter.
Comparable store sales results in the East continue to be indicative of
the Company's strategy to strengthen the appeal of stores to target
customers - contractors, remodelers and serious do-it-yourselfers.
Comparable increases in professional sales have offset a decline in retail
sales, reflective of increasingly competitive conditions. Contractors'
Warehouse comparable store sales results are indicative of the wet
conditions during the first quarter of 1995 and the continuing slowing
economy in Southern California.
Gross profit declined by $2.6 million as the result of the sales decline
and a decline in gross margin from 24.9% in 1994 to 24.4% in 1995. The
decline in gross margin reflects the increase in sales mix toward
professional sales, including Contractors' Warehouse, from 61.6% of total
sales in the first quarter of 1994 to 66.5% of total sales in the first
quarter of 1995. Additionally, margins on commodity lumber have declined
concurrent with the price decline discussed above.
Selling and administrative expenses in the first quarter of 1995 reflect
store openings and additional expenses, principally payroll, related to
Eastern Division store modifications. These modifications, designed to
attract professional sales, were completed in all Grossman's stores in
time for the spring selling season. These additional expenses are
expected to be recovered during the balance of the year. As a result of
these expenses, selling and administrative expense increased as a
percentage of sales to 29.7% in 1995, as compared to 27.6% in 1994.
Interest expense increased from $1.9 million in the first quarter of 1994
to $2.2 million in the first quarter of 1995, reflecting both an increase
in average revolving credit and the rate on such borrowings. The weighted
average rate on revolver borrowings increased from 6.9% in 1994 to 9.4% in
1995.
The 1995 first quarter results include $198 thousand net loss related to
the Company's 50% owned Mexican joint venture, which began operations
during the 1994 second quarter.
13
<PAGE> 14
PART II. OTHER INFORMATION
- ---------------------------
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) EXHIBITS
11(a) Statement re computation of earnings per share, filed
herewith.
(b) REPORTS ON FORM 8-K
The Company did not file any reports on Form 8-K during the
three months ended March 31, 1995.
14
<PAGE> 15
SIGNATURES
- ----------
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
GROSSMAN'S INC.
Company
by /s/ Sydney L. Katz
-------------------------------------
Sydney L. Katz
President and Chief Executive Officer
DATE: May 4, 1995
15
Exhibit 11a
- -----------
Statement re computation of earnings per share.
EXHIBIT 11(a)
<TABLE>
GROSSMAN'S INC.
COMPUTATION OF EARNINGS PER SHARE
(in thousands, except per share data)
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
--------------------
1995 1994
---- ----
<S> <C> <C>
Net loss for primary and fully
diluted earnings per share $(10,672) $(7,827)
========= ========
Weighted average number of shares
outstanding 25,782 25,725
Net effect of dilutive stock options - -
Total weighted average shares
outstanding and common stock
equivalents used in primary
calculation of earnings per share 25,782 25,725
Additional dilution from stock
options - -
Total weighted average shares
outstanding and common stock
equivalents used in fully diluted
calculation of earnings per share 25,782 25,725
========= ========
Primary loss per share $ (0.41) $(0.30)
========= ========
Fully diluted loss per share $ (0.41) $(0.30)
========= ========
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> 917
<SECURITIES> 0
<RECEIVABLES> 18,979
<ALLOWANCES> 4,450
<INVENTORY> 124,890
<CURRENT-ASSETS> 150,503
<PP&E> 163,168
<DEPRECIATION> 59,473
<TOTAL-ASSETS> 256,631
<CURRENT-LIABILITIES> 120,590
<BONDS> 50,973
<COMMON> 261
0
0
<OTHER-SE> 68,849
<TOTAL-LIABILITY-AND-EQUITY> 256,631
<SALES> 126,770
<TOTAL-REVENUES> 126,770
<CGS> 95,777
<TOTAL-COSTS> 95,777
<OTHER-EXPENSES> 40,848
<LOSS-PROVISION> 135
<INTEREST-EXPENSE> 2,197
<INCOME-PRETAX> (11,858)
<INCOME-TAX> (1,186)
<INCOME-CONTINUING> (10,672)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (10,672)
<EPS-PRIMARY> (0.41)
<EPS-DILUTED> (0.41)
</TABLE>
