Form 10-Q Quarterly Report
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended February 26, 2000
-------------------------------
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 1-5901
---------------------------------------------------------
Fab Industries, Inc.
--------------------
(Exact name of registrant as specified in its charter)
Delaware 13-2581181
(State or other jurisdiction of (I.R.S. Employer)
incorporation or organization) Identification No.)
200 Madison Avenue, New York, N.Y. 10016
- --------------------------------------------------------------------------------
(Address of principal executive office) (Zip Code)
(212) 592-2700
(Registrant's telephone number, including area code)
-------------------------------------------------------------------------------
N/A
- -------------------------------------------------------------------------------
(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__
CLASS Shares Outstanding at April 10, 2000
- ----------------------------------- ------------------------------------
Common stock, $.20 par value 5,353,516
<PAGE>
FAB INDUSTRIES INC. AND SUBSIDIARIES
TABLE OF CONTENTS
PART 1 - FINANCIAL INFORMATION PAGE
Table of Contents 1
Condensed Consolidated Statements of Operations
13 Weeks ended February 26, 2000 and February 27, 1999 2
Condensed Consolidated Balance Sheets (Asset Section)
February 26, 2000 and November 27, 1999 3
Condensed Consolidated Balance Sheets (Liabilities and
Stockholders' Equity Section) February 26, 2000
and November 27, 1999 4
Condensed Consolidated Statements of Stockholders'
Equity 13 Weeks ended February 26, 2000 5
Condensed Consolidated Statements of Cash Flows
13 Weeks ended February 26, 2000 and February 27, 1999 6
Notes to Condensed Consolidated Financial Statements 7
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 13
Management's Discussion and Analysis of Financial Condition
and Results of Operations 14
SIGNATURES 17
1
<PAGE>
FAB INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE 13 WKS ENDED
------------------------------------------
February 26, 2000 February 27, 1999
------------------------------------------
Net sales $28,339,000 $29,007,000
Cost of goods sold 25,888,000 28,761,000
------------ ------------
Gross profit 2,451,000 246,000
Selling, general and administrative
expenses 3,338,000 3,875,000
-------------- ------------
Operating (loss) (887,000) (3,629,000)
-------------- ------------
Other income (expense):
Interest and dividend income 862,000 837,000
Interest expense (11,000) (13,000)
Net gain on investment securities 422,000 319,000
------------ ------------
Total other income 1,273,000 1,143,000
-------------- ------------
Income (loss) before taxes 386,000 (2,486,000)
Income tax expense (benefit) 82,000 (671,000)
------------ ------------
Net income (loss) $ 304,000 $ (1,815,000)
Earnings (loss) per share: (Note 5)
Basic $0.06 $(0.33)
Diluted $0.06 $(0.33)
Cash dividends declared per share $0.175 $0.175
See notes to condensed consolidated financial statements.
2
<PAGE>
FAB INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
A S S E T S
-----------
AS OF
-----------------------------------
February 26, November 27,
2000 1999
-----------------------------------
Current Assets:
Cash and cash equivalents (Note 2) $ 7,622,000 $ 6,078,000
Investment securities available-for-sale
(Note 3) 58,505,000 57,752,000
Accounts receivable-net of allowance of
$1,600,000 and $1,500,000 for doubtful
accounts 19,287,000 21,417,000
Inventories (Note 4) 23,054,000 24,002,000
Other current assets 1,937,000 2,215,000
-------------- -------------
Total current assets 110,405,000 111,464,000
-------------- -------------
Property, plant and equipment - at cost 131,479,000 131,021,000
Less: Accumulated depreciation 96,137,000 94,612,000
-------------- -------------
35,342,000 36,409,000
Other assets 4,266,000 4,305,000
-------------- -------------
$150,013,000 $152,178,000
============== ============
See notes to condensed consolidated financial statements.
3
<PAGE>
FAB INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
L I A B I L I T I E S and
---------------------------
S T O C K H O L D E R S' E Q U I T Y
---------------------------------------
AS OF
-----------------------------------
February 26, November 27,
2000 1999
-----------------------------------
Current liabilities:
Accounts payable $ 7,446,000 $ 7,191,000
Corporate income and other taxes 1,186,000 1,553,000
Accrued payroll and related expenses 1,189,000 1,829,000
Dividends payable 937,000 946,000
Other current liabilities 630,000 562,000
Deferred income taxes 287,000 517,000
------------ ------------
Total current liabilities 11,675,000 12,598,000
------------ ------------
Obligations under capital leases - net of
current maturities 397,000 409,000
Other noncurrent liabilities 3,313,000 3,313,000
Deferred income taxes 5,260,000 5,070,000
------------ ------------
Total liabilities 20,645,000 21,390,000
------------ ------------
Stockholders' equity 129,368,000 130,788,000
------------ ------------
$150,013,000 $152,178,000
============ ============
See notes to condensed consolidated financial statements.
4
<PAGE>
FAB INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
FOR THE 13 WEEKS ENDED FEBRUARY 26, 2000
<TABLE>
<CAPTION>
Loan to
Employee Accumulated Treasury
Common Stock * Additional Stock Other Stock
Number of Paid-in Retained Ownership Comprehensive Number of
Total Shares Amount Capital Earnings Plan Income (Loss) Shares Cost
- ------------------------------------------------------------------------------------------------------------------------------------
Balance at
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
November 27, 1999 $130,788,000 6,591,944 $1,319,000 $6,967,000 $161,445,000 ($5,537,000) ($411,000) (1,188,389) ($32,995,000)
Net Income 304,000 304,000
Change in net
unrealized holding
loss on investment
securities available-for-
sale, net of taxes (239,000) (239,000)
--------
Total comprehensive
income 65,000
Cash dividends (937,000) (937,000)
Purchase of
treasury stock (548,000) (50,039) (548,000)
----------------------------------------------------------------------------------------------------------------
Balance at
February 26, 2000 $129,368,000 6,591,944 $1,319,000 $6,967,000 $160,812,000 ($5,537,000) ($650,000) (1,238,428) ($33,543,000)
(Unaudited) ================================================================================================================
</TABLE>
* Common stock $0.20 par value - 15,000,000 shares authorized.
Preferred stock $1.00 par value - 2,000,000 shares authorized, none issued. See
notes to condensed consolidated financial statements.
5
<PAGE>
FAB INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 13 WKS ENDED
-----------------------------------
February 26, November 27,
2000 1999
-----------------------------------
OPERATING ACTIVITIES:
Net Income (Loss) $304,000 ($1,815,000)
Adjustments to reconcile net income
to net cash provided by operating
activities:
Provision for doubtful accounts 175,000 100,000
Depreciation and amortization 1,525,000 1,617,000
Deferred income taxes 119,000 (6,000)
Net gain on investment securities (422,000) (319,000)
Compensation under restricted stock plan - 12,000
Decrease (increase) in:
Accounts receivable 1,955,000 5,993,000
Inventories 948,000 2,240,000
Other current assets 278,000 (745,000)
Other assets 39,000 80,000
(Decrease) increase in:
Accounts payable 255,000 (2,244,000)
Accruals and other liabilities (960,000) (1,356,000)
------------- ------------
Net cash provided by
operating activities 4,216,000 3,557,000
------------- ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment (458,000) (1,530,000)
Proceeds from sales of investment securities - 1,208,000
Acquisition of investment securities (729,000) (709,000)
------------- ------------
Net cash used in
investing activities (1,187,000) (1,031,000)
------------- ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchase of treasury stock (548,000) (3,196,000)
Dividends (937,000) (948,000)
Exercise of stock options - 54,000
------------- ------------
Net cash used in financing activities (1,485,000) (4,090,000)
------------- ------------
Increase (decrease) in cash and cash equivalents 1,544,000 (1,564,000)
Cash and cash equivalents, beginning of period 6,078,000 6,078,000
------------- ------------
Cash and cash equivalents, end of period $7,622,000 $4,514,000
============= ============
See notes to condensed consolidated financial statements.
6
<PAGE>
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of presentation:
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information and the instructions to Form 10-Q and Rule 10-01
of Regulation S-X of the Securities and Exchange Commission. Accordingly, they
do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. In the opinion
of management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. Operating
results for the 13 weeks ended February 26, 2000 are not necessarily indicative
of the results that may be expected for the entire fiscal year ending December
2, 2000. The balance sheet at November 27, 1999 has been derived from the
audited balance sheet at that date. For further information, refer to the
consolidated financial statements and footnotes thereto included in the
Company's Annual Report on Form 10-K for the fiscal year ended November 27,
1999.
2. Cash and cash equivalents consist of the following (in thousands):
February 26, 2000 November 26, 1999
----------------- -----------------
Cash $1,416 $2,078
Tax-free short-term debt instruments 6,206 4,000
------ ------
$7,622 $6,078
====== ======
7
<PAGE>
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
3. Investment Securities:
At February 26, 2000 and November 27, 1999 investment securities
available-for-sale consist of the following (in thousands):
<TABLE>
<CAPTION>
Gross Gross
Unrealized Unrealized
Holding Holding Fair
February 26, 2000 (Unaudited) Cost Gain Loss Value
- ----------------------------- ---- ---- ---- -----
<S> <C> <C> <C> <C>
Equities $ 1,225 $ - ($ 38) $ 1,187
U.S. Treasury obligations
and cash equivalents 15,937 - 15,937
Tax-exempt obligations 21,959 17 ( 583) 21,393
Corporate bonds 20,466 15 ( 493) 19,988
-------- --------- --------- --------
$ 59,587 $ 32 ( $1,114) $58,505
======== ========= ========= =======
</TABLE>
<TABLE>
<CAPTION>
Gross Gross
Unrealized Unrealized
Holding Holding Fair
November 27, 1999 Cost Gain Loss Value
- ----------------- ---- ---- ---- -----
<S> <C> <C> <C> <C>
Equities $ 1,224 $ - ($ 25) $ 1,199
U.S. Treasury obligations 12,587 1 - 12,588
Tax-exempt obligations 24,168 55 ( 380) 23,843
Corporate bonds 20,457 19 ( 354) 20,122
-------- --------- ------- -------
$ 58,436 $ 75 ($ 759) $57,752
======== ========= ======= =======
</TABLE>
8
<PAGE>
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
4. Inventories:
The Company's inventories are valued at the lower of cost or market. Cost is
determined principally by the last-in, first-out (LIFO) method with the
remainder being determined by the first-in, first-out (FIFO) method. Because the
inventory valuation under the LIFO method is based upon an annual determination
of inventory levels and costs as of the fiscal year-end, the interim LIFO
calculations are based on management's estimates of expected year-end inventory
levels and costs.
February 26, 2000 November 27, 1999
----------------- -----------------
Raw materials $ 6,522,000 $ 7,337,000
Work in process 7,963,000 7,871,000
Finished goods 8,569,000 8,794,000
------------ -----------
Total $ 23,054,000 $24,002,000
============ ===========
Approximate percentage of
inventories valued
under LIFO valuation 55% 53%
Excess of FIFO valuation
over LIFO valuation $ 3,000,000 $ 3,000,000
============ ===========
5. Earnings Per Share:
Basic and diluted earnings (loss) per share for the 13 weeks ended
February 26, 2000 and February 27, 1999 are calculated as follows:
Net
Income Per-share
(loss) Shares Amount
------ ------ ------
For the 13 weeks ended February 26, 2000:
Basic and diluted earnings per share $304,000 5,373,856 $0. 06
-------- --------- ------
For the 13 weeks ended February 27, 1999:
Basic and diluted loss per share ($1,815,000) 5,435,028 ($0.33)
------------ --------- -------
9
<PAGE>
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
6. Segment Information:
The Company's chief operating decision-maker is considered to be the
Chief Executive Officer (CEO). The Company's CEO evaluates both consolidated and
disaggregated financial information in deciding how to allocate resources and
assess performance. The Company has identified three reportable segments based
upon the primary markets it serves: Apparel Fabrics, Home Fashions and
Accessories and Other.
Apparel Fabrics: The Company is a major manufacturer of warp and circular knit
fabrics and raschel laces. The Company's textile fabrics are sold to a wide
variety of manufacturers of ready-to-wear and intimate apparel for men, women,
and children, including dresses and sportswear, children's sleepwear,
activewear, swimwear, and recreational apparel.
Home Fashions and Accessories: The Company uses its own textile fabrics
internally to produce 100% cotton jersey sheets, flannel and satin sheets, as
well as blankets, comforters and other bedding products which the Company sells
to department and specialty stores, catalogues and mail order companies as well
as airlines and healthcare institutions. The Company's textile fabrics are also
sold to manufacturers of home furnishings.
Other: The Company produces a line of ultrasonically, hot melt adhesive, flame
and adhesive bonded products for apparel, environmental, health care, industrial
and consumer markets. The Company's textile fabrics are sold to manufacturers of
industrial fabrics and upholstery fabrics for residential and contact markets.
The Company also sells retail over-the-counter fabrics.
The Company neither allocates to the segments nor bases segment
decisions on the following:
- Interest and dividend income
- Interest expense
- Net gain on investment securities
- Income tax expense or benefit
Many of the Company's assets are used by multiple segments. While
certain assets such as Inventory and Property, Plant and Equipment are
identifiable by segment, an allocation of the substantial remaining assets is
not meaningful.
(in thousands)
<TABLE>
<CAPTION>
Home Fashions
First Quarter Ended 02/26/00 Apparel and Accessories Other Total
- ---------------------------- ------- --------------- ----- -----
<S> <C> <C> <C> <C>
External sales $22,937 $2,958 $2,444 $28,339
Intersegment sales 2,706 25 71 2,802
Operating income/(loss) (1,561) 681 (7) (887)
Depreciation expense 1,361 14 119 1,494
Segment assets 51,002 2,505 4,576 58,083
Capital expenditures 257 - 195 452
</TABLE>
10
<PAGE>
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
Home
Fashions
and
First Quarter Ended 02/27/99 Apparel Accessories Other Total
- ---------------------------- ------- ----------- ----- -----
<S> <C> <C> <C> <C>
External sales $23,342 $3,583 $2,082 $29,007
Intersegment sales 3,407 22 187 3,616
Operating income/(loss) (3,224) 88 (493) (3,629)
Depreciation expense 1,465 14 101 1,580
Segment assets 56,367 5,068 4,562 65,997
Capital expenditures 1,040 19 469 1,528
</TABLE>
Revenues 2000 1999
- -------- ---- ----
Total external sales for segments $28,339 $29,007
Intersegment sales for segments 2,802 3,616
Elimination of intersegment sales (2,802) (3,616)
------- -------
Total consolidated sales $28,339 $28,339
======= =======
Profit or Loss 2000 1999
- -------------- ---- ----
Total operating income (loss) for segments $ (887) $(3,629)
Total other income 1,273 1,143
------- -------
Income (loss) before taxes on income $ 386 $(2,486)
======= =======
Assets 2000 1999
- ------ ---- ----
Total segments assets $58,083 65,997
Assets not allocated to segments 91,930 6,181
-------- --------
Total consolidated assets $150,013 $152,178
========= ========
Other Significant Items 2000 1999
- ----------------------- ---- ----
Depreciation expense $ 1,494 $ 1,580
Not allocated to segments 31 7
-------- -------
Consolidated total $ 1 ,525 $ 1,617
======== =======
Capital expenditures $ 452 $ 1,528
Not allocated to segments 6 2
-------- -------
Consolidated total $ 458 $ 1,530
======== =======
11
<PAGE>
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
7. Comprehensive Income (Loss):
Accumulated other comprehensive income (loss) is comprised of
unrealized holding gain (loss) related to available-for-sale securities.
Comprehensive income (loss) was $65,000 and ($1,927,000) for the quarter ended
February 26, 2000 and February 27, 1999, respectively.
8. Contingencies:
A number of claims and lawsuits seeking unspecified damages and other
relief are pending against the Company. It is impossible at this time for the
Company to predict with any certainty the outcome of such litigation. However,
management is of the opinion based upon information presently available, that it
is unlikely that any liability, to the extent not provided for through insurance
or otherwise, would be material in relation to the Company's consolidated
financial position.
12
<PAGE>
PART II. OTHER INFORMATION
--------------------------------
Item 6. Exhibits and Reports on Form 8-K
----------------------------------------
a) Exhibits: No exhibits are filed herewith except for Exhibit 27 which
is filed with EDGAR filing only.
b) Reports on Form 8-K: The Registrant did not file any Current Reports
on Form 8-K during the quarter ending February 26, 2000.
13
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
First Quarter
Fiscal 2000 Compared to Fiscal 1999
- -----------------------------------
Net sales for the first quarter of fiscal 2000 were $28,339,000 as
compared to $29,007,000 in the similar 1999 period, a decrease of $668,000 or
2.3%. Business conditions within the domestic textile industry remained
depressed, and the Company continued to experience competitive market
conditions, both domestic and foreign. U.S. firms are forced to compete against
a flood of cheap imports and falling demand for U.S. goods overseas. These
factors have continued to exert downward pressure on the Company's sales levels.
Certain of the Company's products enjoyed stronger customer demand.
Overall Company gross margins for the quarter improved to 8.6% from
0.8% last year. Margins were aided by improved product mix and lower cost
structures. The Company has intensified its cost control programs. In the 1999
quarter, a reduction in LIFO reserves arising from lower average FIFO cost
levels benefited margins in the amount of $1,095,000. In the current quarter, no
adjustments to LIFO inventory reserves were required.
Selling, general and administrative expenses in the current quarter
decreased by $537,000, or 13.9%. Reduced expenses related primarily to
incentive-based compensation, lower related salaries and salesmen commissions.
As a percentage of sales, such costs decreased to 11.8% from 13.4%.
14
<PAGE>
The effective income tax rate for the current quarter was 21.2% as
against a tax benefit in the comparative 1999 period.
As a result of these factors, quarterly net income was $304,000,
compared to net loss of $(1,815,000) in last year's first quarter.
For the current quarter, basic and diluted earnings per share were
$0.06 compared to basic and diluted losses of $(0.33) per share in last years'
first quarter.
Liquidity and Capital Resources
- -------------------------------
Operating activities provided cash of $4,216,000 and $3,557,000, for
the 13 weeks ended February 26, 2000 and February 27, 1999 respectively. Of this
increase, $2,119,000 relates to comparative changes in net income, $1,023,000 in
other current assets and $2,895,000 to accounts payable, accruals and other
liabilities. These increases were offset by reductions of $4,038,000 in accounts
receivable and $1,292,000 in inventories.
Capital expenditures for the quarter were approximately $450,000
compared to approximately $1.5 million in the comparative 1999 first quarter.
During the quarter, the Company repurchased 50,039 shares of its common
stock at an average price of $11.05. The Company intends to continue to purchase
its shares of common stock from time-to-time, as market conditions warrant and
price criteria are met.
The Company declared a quarterly dividend of $0.175 per share, payable
April 21, 2000, to stockholders of record as of March 15, 2000.
Stockholders' equity was $129,368,000 ($24.16 book value per share) at
February 26, 2000, as compared to $130,788,000,
15
<PAGE>
($24.20 book value per share) at the previous fiscal year-end November 27, 1999,
and $131,522,000 ($24.29 book value per share) at the end of the comparative
1999 first quarter.
Management believes that the current financial position of the company
is more than adequate to internally fund any future expenditures to maintain,
modernize and expand its manufacturing facilities, and pay dividends.
Pending Accounting Pronouncements
- ---------------------------------
In June 1998, the FASB issued FAS 133, "Accounting for Derivative
Instruments and Hedging Activities", effective for years beginning after June
15, 1999. The effective date has been delayed to June 15, 2000, the Company's
fiscal year 2001, as a result of the FASB's issuance in August 1999 of FAS 137,
"Accounting for Derivative Instruments and Hedging Activities - Deferral of the
Effective date of FASB Statement No. 133". FAS 133 requires that all derivatives
be recorded on the balance sheet at fair value. Derivatives that are not hedges
must be adjusted to fair value through income. If the derivative is a hedge,
depending on the nature of the hedge, changes in the fair value of derivatives
are either offset against the change in the fair value of assets, liabilities,
or firm commitments through earnings or recognized in other comprehensive income
until the hedged item is recognized in earnings. The ineffective portion of a
derivative's change in fair value will be immediately recognized in earnings.
The Company has not yet determined what the effect of FAS 133 will be on the
earnings and financial position of the Company.
FORWARD LOOKING INFORMATION
- ---------------------------
Certain statements in this report are "forward looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995. All
forward looking statements involve risks and uncertainties. In particular, any
statement contained herein, in press releases, written statements or other
documents filed with the Securities and Exchange Commission, or in the Company's
communications and discussions with investors and analysts in the normal course
of business through meetings, phone calls and conference calls, regarding the
consummation and benefits of future acquisitions, as well as expectations with
respect to future sales, operating efficiencies and product expansion, are
subject to known and unknown risks, uncertainties and contingencies, many of
which are beyond the control of the Company, which may cause actual results,
performance or achievements to differ materially from anticipated results,
performances or achievements. Factors that might affect such forward looking
statements include, among other things, overall economic and business
conditions; the demand for the Company's goods and services; competitive factors
in the industries in which the Company competes; changes in government
regulation; changes in tax requirements (including tax rate changes, new tax
laws and revised tax law interpretations); interest rate fluctuations and other
capital market conditions, including foreign currency rate fluctuations:
economic and political conditions in international markets, including
governmental changes and restrictions on the ability to transfer capital across
borders; the ability to achieve anticipated synergies and other cost savings in
connection with acquisitions; the timing, impact and other uncertainties of
future acquisitions.
16
<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 thereunto duly authorized.
Dated: April 10, 2000 FAB INDUSTRIES, INC.
By: /s/ David A. Miller
------------------------------
David A. Miller
Vice President-Finance, Treasurer
and Chief Financial Officer
(Principal Financial and
Accounting Officer)
17
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-02-2000
<PERIOD-END> FEB-26-2000
<CASH> 7,622
<SECURITIES> 58,505
<RECEIVABLES> 19,287
<ALLOWANCES> 1,600
<INVENTORY> 23,054
<CURRENT-ASSETS> 110,405
<PP&E> 131,479
<DEPRECIATION> 96,137
<TOTAL-ASSETS> 150,013
<CURRENT-LIABILITIES> 11,675
<BONDS> 397
0
0
<COMMON> 1,319
<OTHER-SE> 128,049
<TOTAL-LIABILITY-AND-EQUITY> 150,013
<SALES> 28,339
<TOTAL-REVENUES> 28,339
<CGS> 25,888
<TOTAL-COSTS> 25,888
<OTHER-EXPENSES> 3,338
<LOSS-PROVISION> 175
<INTEREST-EXPENSE> 11
<INCOME-PRETAX> 386
<INCOME-TAX> 82
<INCOME-CONTINUING> 304
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 304
<EPS-BASIC> .06
<EPS-DILUTED> .06
</TABLE>
