<PAGE>
FORM 10-Q
---------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(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, 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 0-12808
---------------------
Cade Industries, Inc.
--------------------------------------------------------
(Exact name of registrant as specified in its charter)
Wisconsin 39-1371038
- --------------------------------- ------------------------
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
2365 Woodlake Drive, Suite 120, Okemos, Michigan 48864
------------------------------------------------------
(Address of principal executive offices)
(Zip Code)
(517) 347-1333
------------------------------------------------------
(Registrant's telephone number, including area code)
------------------------------------------------------
(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 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
--- ---
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practical date.
Common stock, $0.001 Par Value--21,968,627 shares as of
August 6, 1998
<PAGE>
INDEX
CADE INDUSTRIES, INC.
---------------------
<TABLE>
<CAPTION>
PAGE
<S> <C>
PART I - FINANCIAL INFORMATION
- ------------------------------
Item 1. Financial Statements
Condensed Consolidated Balance Sheets 1
Condensed Consolidated Statements of
Income for the three months ended
June 30, 1998 and 1997 3
Condensed Consolidated Statements of Income
for the Six Months Ended June 30, 1998
and 1997 4
Condensed Consolidated Statements of Cash Flows
for the six months ended June 30, 1998
and 1997 5
Notes to Condensed Consolidated Financial
Statements 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations 9
Item 3. Quantitative and Qualitative Disclosures About
Market Risk 11
PART II - OTHER INFORMATION
- ---------------------------
Item 1. Legal Proceedings 12
Item 2. Changes in Securities and Use of Proceeds 12
Item 4. Submission of Matters to a Vote of Security Holders 12
Item 5. Other Information 12
Item 6. Exhibits and Reports on Form 8-K 13
</TABLE>
<PAGE>
PART I, ITEM 1 - FINANCIAL STATEMENTS
CONDENSED CONSOLIDATED BALANCE SHEETS
CADE INDUSTRIES, INC.
<TABLE>
<CAPTION>
June 30,
1998 December 31,
(Unaudited) 1997*
------------ ------------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 157,870 $ 1,093,176
Trade accounts receivable - net 13,178,254 12,687,969
Costs and estimated earnings in excess
of billings on uncompleted contracts 2,430,187 2,053,922
Inventories:
Finished goods and work in progress 8,514,532 7,227,176
Materials and supplies 7,525,128 6,571,791
----------- -----------
16,039,660 13,798,967
Deferred income taxes 1,154,000 1,154,000
Prepaid expenses and other current assets 785,416 413,132
----------- -----------
TOTAL CURRENT ASSETS 33,745,387 31,201,166
PROPERTY, PLANT AND EQUIPMENT
Land and improvements 737,365 737,365
Buildings 6,959,870 6,934,411
Machinery and equipment 12,294,334 11,430,507
Tooling 12,660,765 12,447,568
----------- -----------
32,652,334 31,549,851
Less accumulated depreciation and amortization 14,618,416 13,887,690
----------- -----------
18,033,918 17,662,161
INTANGIBLE AND OTHER ASSETS
Goodwill - net 5,431,103 5,552,849
Other assets 228,115 153,715
----------- -----------
5,659,218 5,706,564
----------- -----------
$57,438,523 $54,569,891
=========== ===========
</TABLE>
1
(Continued)
<PAGE>
CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)
CADE INDUSTRIES, INC.
<TABLE>
<CAPTION>
June 30,
1998 December 31,
(Unaudited) 1997*
----------- -----------
<S> <C> <C>
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Note payable to bank $ 850,000 $ 1,460,000
Current portion of long-term debt 2,968,609 3,012,998
Trade accounts payable 4,455,747 5,190,782
Employee compensation and amounts withheld 2,077,940 2,471,638
Billings in excess of costs and estimated
earnings on uncompleted contracts 8,168,628 5,626,388
Accrued expenses 2,493,617 1,609,611
Accrued income taxes 649,860 395,088
----------- -----------
TOTAL CURRENT LIABILITIES 21,664,401 19,766,505
LONG-TERM DEBT 9,525,556 10,682,554
DEFERRED INCOME TAXES 788,000 788,000
SHAREHOLDERS' EQUITY
Preferred Stock, 10% cumulative, non-voting,
stated value $300 per share; authorized 500
shares, none issued
Common Stock, par value $.001 per share;
authorized 100,000,000 shares, issued
22,348,859 shares (22,238,859 shares in 1997) 22,349 22,239
Additional paid-in capital 9,491,975 9,360,968
Retained earnings 16,473,695 14,475,571
----------- -----------
25,988,019 23,858,778
Less cost of Common Stock in treasury
(310,232 and 350,055 shares in 1998 and
1997, respectively) 527,453 525,946
----------- -----------
25,460,566 23,332,832
----------- -----------
$57,438,523 $54,569,891
=========== ===========
</TABLE>
* The balance sheet at December 31, 1997 has been derived from the audited
financial statements at that date.
See notes to condensed consolidated financial statements.
2
<PAGE>
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
CADE INDUSTRIES, INC.
<TABLE>
<CAPTION>
Three Months Ended
June 30
------------------------------------
1998 1997
----------- -----------
<S> <C> <C>
Sales $24,098,408 $12,952,885
Operating expenses:
Cost of sales 18,752,711 9,826,307
Selling, general and administrative expenses 3,542,038 2,149,744
----------- -----------
22,294,749 11,976,051
----------- -----------
INCOME FROM OPERATIONS 1,803,659 976,834
Interest expense - net 325,972 190,891
----------- -----------
INCOME BEFORE INCOME TAXES 1,477,687 785,943
Income taxes 398,000 248,000
----------- -----------
NET INCOME $ 1,079,687 $ 537,943
=========== ===========
NET INCOME PER SHARE
Basic $ 0.05 $ 0.02
Diluted 0.05 0.02
</TABLE>
See notes to condensed consolidated financial statements.
3
<PAGE>
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
CADE INDUSTRIES, INC.
<TABLE>
<CAPTION>
Six Months Ended
June 30
------------------------------------
1998 1997
----------- -----------
<S> <C> <C>
Sales $46,011,756 $25,308,442
Operating expenses:
Cost of sales 35,390,047 19,202,420
Selling, general and administrative expenses 7,129,456 4,253,579
----------- -----------
42,519,503 23,455,999
----------- -----------
INCOME FROM OPERATIONS 3,492,253 1,852,443
Interest expense - net 654,129 376,057
----------- -----------
INCOME BEFORE INCOME TAXES 2,838,124 1,476,386
Income taxes 840,000 467,000
----------- -----------
NET INCOME $ 1,998,124 $ 1,009,386
=========== ===========
NET INCOME PER SHARE
Basic $ 0.09 $ 0.05
Diluted 0.09 0.05
</TABLE>
See notes to condensed consolidated financial statements.
4
<PAGE>
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
CADE INDUSTRIES, INC.
<TABLE>
<CAPTION>
Six Months Ended June 30
------------------------------------------
1998 1997
---- ----
<S> <C> <C>
NET CASH PROVIDED BY (USED IN):
OPERATING ACTIVITIES $ 2,302,347 $ 657,255
INVESTING ACTIVITIES
Additions to property, plant and equipment (1,577,475) (1,420,473)
Other (36,625)
----------- -----------
(1,577,475) (1,457,098)
FINANCING ACTIVITIES
Increase (decrease) in note payable to bank (610,000) 960,000
(Payments) of long-term debt - net of new
borrowing proceeds (1,201,387) (30,869)
Exercise of stock options 93,125 3,828
Purchase of common stock for treasury (28,910) (127,268)
Other 86,994 63,722
----------- -----------
(1,660,178) 869,413
----------- -----------
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (935,306) 69,570
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 1,093,176 21,606
----------- -----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 157,870 $ 91,176
=========== ===========
</TABLE>
See notes to condensed consolidated financial statements.
5
<PAGE>
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
CADE INDUSTRIES, INC.
JUNE 30, 1998
NOTE A -- BASIS OF PRESENTATION
- -------------------------------
The condensed consolidated financial statements as of and for the three and six
month periods ended June 30, 1998 and 1997, have been prepared by the Company
without audit, pursuant to the rules and regulations of the Securities and
Exchange Commission. In the opinion of management, such condensed consolidated
financial statements reflect all adjustments necessary (consisting only of
normal recurring accruals) for a fair presentation. 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 year ended December 31, 1997.
NOTE B -- EARNINGS PER SHARE
- ----------------------------
The following table sets forth the computation of basic and diluted earnings per
share:
<TABLE>
<CAPTION>
Three Months Ended June 30 Six Months Ended June 30
---------------------------- ----------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Numerator:
Numerator for basic and diluted earnings
per share - income available to
common shareholders $ 1,079,687 $ 537,943 $ 1,998,124 $ 1,009,386
=========== =========== =========== ===========
Denominator:
Denominator for basic earnings per share -
weighted average shares 22,034,891 21,683,270 22,007,499 21,696,631
Effect of dilutive stock options - potential
common shares 710,286 344,131 633,284 316,713
----------- ------------ ----------- -----------
Denominator for diluted earnings per share -
adjusted weighted-average shares 22,745,177 22,027,401 22,640,783 22,013,344
=========== =========== =========== ===========
Basic Earnings Per Share $ 0.05 $ 0.02 $ 0.09 $ 0.05
=========== =========== =========== ===========
Diluted Earnings Per Share $ 0.05 $ 0.02 $ 0.09 $ 0.05
=========== =========== =========== ===========
</TABLE>
6
<PAGE>
NOTE C -- SUBSEQUENT EVENT
- --------------------------
On August 4, 1998 the Board of Directors of the Company adopted a shareholder
rights plan and declared a rights dividend of one common stock purchase right
for each share of common stock outstanding on August 7,1998 and provided that
one right would be issued with each share of common stock thereafter issued.
The shareholder rights plan provides that in the event a person or group
acquires or seeks to acquire 15% or more of the outstanding common stock of the
Company, the rights, subject to certain limitations, will become exercisable.
Each right, once exercisable, initially entitles the holder thereof (other than
the acquiring person whose rights are canceled) to purchase from the Company one
share of common stock at an initial exercise price of $15, subject to
adjustment, or, upon the occurrence of certain events, common stock of the
Company or common stock of an acquiring company having a market value equivalent
to two times the exercise price. Subject to certain conditions, the rights are
redeemable by the Board of Directors for $.0001 per right and are exchangeable
for shares of common stock. The rights have no voting power and expire on
August 3, 2008. The Company filed a Form 8-K with the Securities and Exchange
Commission on August 7, 1998, which provides a full description of the plan.
NOTE D -- NEW ACCOUNTING PRONOUNCEMENTS
- ---------------------------------------
The Financial Accounting Standards Board has issued Statement of Financial
Accounting Standards (SFAS) No. 130, "Reporting Comprehensive Income," which is
effective for financial statements issued after December 15, 1997, and requires
all items of comprehensive income be reported in a financial statement that is
displayed with the same prominence as other financial statements. Other
comprehensive income may include foreign currency items, minimum pension
liability adjustments and unrealized gains and losses on certain investments in
debt and equity securities. The accumulated balance of other comprehensive
income must be displayed separately from retained earnings and additional paid-
in capital in the equity section of a statement of financial position. The
Company has adopted this accounting standard effective January 1, 1998, as
required, and currently there are no items that qualify as "other comprehensive
income." Accordingly, no separate statement has been presented herein.
In June 1997 the Financial Account Standards Board issued Statement of Financial
Accounting Standards No. 131, "Disclosures about Segments of an Enterprise and
Related Information." This Statement establishes standards for the way public
companies report information about operating segments and requires select
information be reported in both interim and annual reports. The Statement is
effective for fiscal years beginning after December 15, 1997, but need not be
applied to interim financial statements in the initial year of application,
although restatement of interim periods presented is required in subsequent
interim reports. The Company is required to adopt this standard for the year
ended December 31, 1998.
In February 1998 the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 132, "Employers' Disclosures about Pensions
and Other Postretirement Benefits." This Statement revises employers'
disclosures about pension and other postretirement benefit plans. It does not
change the measurement or recognition of those plans. This Statement
standardizes the disclosure requirements for pensions and
7
<PAGE>
other postretirement benefits to the extent practicable, requires additional
information on changes in the benefit obligations and fair values of plan assets
that will facilitate financial analysis, and eliminates certain disclosures.
Restatement of disclosures for earlier periods is required. This Statement is
effective for the Company's financial statements for the year ending December
31, 1998.
8
<PAGE>
PART I, ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
CADE INDUSTRIES, INC.
RESULTS OF OPERATIONS
---------------------
SALES
- -----
The Company's net sales of $24,098,000 in the second quarter of 1998 represented
an increase of 86.0% or $11,146,000 from the same quarter of 1997, while net
sales of $46,012,000 for the six months ended June 30, 1998, represented an
increase of $20,703,000 or 81.8% compared to the same six month period of the
prior year. The higher sales for both the second quarter and six month periods
primarily reflect increased demand for aircraft products, the Company's
continued product diversification and increased sales of jet engine test
facilities and related ground testing equipment as a result of the October 1997
acquisition of Central Engineering Company and its subsidiaries ("Cenco") which
contributed revenues of $8.6 million and $15.4 million, respectively. The
Company's operations, excluding Cenco, had increased revenues of 19.4% and 21.0%
from the three and six month periods ended June 30, 1997, respectively,
resulting from higher sales of engine and airframe components, engine test
equipment and repair and overhaul services.
At June 30, 1998, the Company's backlog was $87.7 million ($41.3 million at June
30, 1997) which includes both firm orders supported by customer purchase orders
with fixed delivery dates, and blanket purchase orders against which customers
issue production releases covering relatively short time periods. Cenco's order
backlog was $36.9 million of the Company's June 30, 1998 total $87.7 million
backlog. Overhaul and repair orders are not included in the order backlog due
to their very short lead times. These sales currently represent about 25% of
the Company's total annual sales.
COST OF SALES
- -------------
Cost of sales for the second quarter of 1998 increased $8,926,000 or 90.8% from
the same quarter of 1997 and for the six months ended June 30, 1998 increased
$16,188,000 or 84.3% from the comparable period in 1997. The increases for both
the quarter and six-month periods were primarily due to the higher sales
(including subcontract revenue) in 1998. Cost of sales as a percent of sales
increased to 77.8% in the second quarter of 1998 from 75.9% in the 1997 second
quarter and for the six months ended June 30, 1998 increased to 76.9% from 75.9%
in the comparable period of 1997. Material cost of sales as a percent of sales
increased in both the three and six-month periods of 1998 due to the inclusion
of the operations of Cenco, the Company's newest subsidiary, which manufactures
jet engine test facilities and certain related ground testing equipment. A
portion of Cenco's revenues derives from contracts to manufacture engine test
facilities that involve building construction by subcontractors. These
subcontract costs, which are expensed as material costs, are passed on to
customers at margins that may fall short of historical manufacturing results.
The increase in the material cost percentage for both the 1998 three and six-
month periods was partially offset by decreases in overhead, labor and tooling
amortization costs as a percent of sales. The largest percentage decrease was
in
9
<PAGE>
overhead cost of sales, which resulted from continued cost containment efforts
and the spreading of fixed manufacturing costs over a larger revenue base.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
- --------------------------------------------
Selling, general and administrative expenses ("administrative expenses") as a
percent of sales were 14.7% and 16.6% for the second quarters of 1998 and 1997,
respectively, and 15.5% and 16.8% for the six months ended June 30, 1998 and
1997, respectively. The decreased percentages of administrative expenses from
the 1997 periods are primarily the result of the significant increase in sales
and the corresponding spreading of these costs over a larger sales base.
Actual amounts expended increased by $1,392,000 ($778,000 attributable to Cenco)
from the second quarter of 1997 to the same quarter of 1998 and by $2,876,000
($1,570,000 attributable to Cenco) from the six months ended June 30, 1997 to
the same period in 1998. Factors contributing to the higher dollar level of
administrative expenditures (excluding Cenco) were increased marketing costs,
professional and consulting fees relating to development of internal production
and information systems, certain insurance costs, expenses related to public and
investor relations efforts, administrative staff and related costs and travel-
related costs incurred to support the higher current and expected sales volumes.
NET INTEREST EXPENSE
- --------------------
Net interest expense as a percent of sales was approximately 1.5% for both the
second quarters of 1998 and 1997 and for both the six-month periods ended June
30, 1998 and 1997. Actual interest expense for the second quarter of 1998
increased by $135,000 to $326,000 and for the six months ended June 30, 1998
increased by $278,000 to $654,000. The increases in the net amount of interest
expense were due to the additional debt associated with the acquisition of
Cenco, which were partially offset by reduced interest expense on short-term
borrowings as a result of decreased line of credit usage.
INCOME TAX EXPENSE
- ------------------
Income taxes were $398,000 or 1.7% of sales in the 1998 second quarter, compared
to $248,000 or 1.9% of sales for the same quarter of 1997. Income taxes as a
percent of sales was 1.8% for both the six month periods ended June 30, 1998 and
1997, while the actual amount increased by $373,000 to $840,000. The effective
tax rate is lower than the statutory rate due primarily to the lower tax rate of
the Company's foreign sales corporation.
NET INCOME
- ----------
Net income of $1,080,000 in the 1998 second quarter represents an increase in
after-tax earnings of $542,000 or 101%, from the 1997 second quarter. Net
income of $1,998,000 for the first six months of 1998 represents an increase in
after-tax earnings of $989,000, or 98%, from the comparable period of 1997.
Factors contributing to these changes were discussed above.
10
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
The Company has historically met its working capital and longer term capital
needs through operating cash flow, short and long-term bank debt and leasing
arrangements on certain items of capital equipment. The Company financed its
1997 acquisition of Cenco with long-term bank debt and the issuance of 250,000
shares of its common stock.
During the first half of 1998, capital was used principally to fund the
Company's inventory and accounts receivable. Management expects to slightly
reduce its present level of investment in inventory during 1998 and to increase
its present level of investment in plant facilities, production and information
system technology, tooling and equipment for improved manufacturing efficiency
and quality enhancement. The Company will also continue to seek acquisition
opportunities to expand and/or diversify its markets.
At the end of the quarter, the Company maintained a $9,000,000 unsecured credit
line with a bank, $4,626,000 of which was available at June 30, 1998, after
consideration of actual line of credit usage and credit line commitments to
support foreign exchange contracts and letters of credit. The Company also had
outstanding approximately $11,173,000 of secured term debt, and $1,323,000 of
subordinated notes.
The Company is currently studying the potential impact of year 2000 issues on
its business and internal operations. The study is also directed at estimating
amounts to be expended relative to year 2000 issues and their impact on the
Company's operations, liquidity and capital resources. To date, no material
amount has been expended on year 2000 issues. Based on the review of its
computer operations to date, the Company believes the costs associated with
transitioning its current computer environment to one that is fully year 2000
compliant is not material to its results of operations or its liquidity and
capital resources, although the total cost of compliance with these issues is
not yet known.
Management believes that expected increased revenues and on-going emphasis on
working capital management will provide cash flow from operations. As a result,
the Company's cash flow from operations, its current credit facilities and
available financing opportunities are felt to be adequate to finance its current
operations and capital expenditure requirements at present and anticipated
levels.
Certain of the information contained in Item 2 is of a forward looking nature
and is subject to various uncertainties. See Item 5.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
- -------
Not applicable.
11
<PAGE>
PART II -- OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
- -------
The Company is not involved in any material pending legal proceedings other than
ordinary routine litigation incidental to its business.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
- -------
On August 4, 1998 the Company adopted a shareholder rights plan. See financial
statement footnote disclosure and the Form 8-K filed with the Securities and
Exchange Commission on August 7, 1998 which provides a full description of the
plan.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
- -------
The results of the Company's annual meeting on May 5, 1998 were reported in the
prior Form 10-Q and the response is incorporated by reference herein.
ITEM 5. OTHER INFORMATION
- -------
The Company's officers may, when appropriate, make public statements that
contain forward looking information as to industry conditions and the Company's
sales and earnings. Forward looking information is subject to risks and
uncertainties that may significantly impact expected results. Among the
factors that could cause actual results to differ materially from those which
are anticipated are the following: business conditions generally and conditions
specifically in the aircraft and aerospace industries; timing of receipt and
delivery of orders; the timing and satisfactory completion of engine test
facilities; price fluctuations for raw materials and labor; competitive factors,
including price competition from other suppliers of similar products and
overhaul and repair services; risk of obsolescence of tooling inventory before
full amortization on project costs; cancellation of orders; foreign currency
exchange rates, the ability to obtain effective hedges against fluctuations in
currency exchange rates; and foreign trade and fiscal policies.
Pursuant to Rule 14a-5(e) under the Securities Exchange Act of 1934, as amended
effective June 29, 1998:
(1) The deadline for submitting shareholder proposals for inclusion in the
Company's proxy statement and form of proxy for the Company's 1999 annual
meeting of shareholders pursuant to Rule 14a-8 is November 30, 1998.
(2) The date after which notice of a shareholder proposal submitted outside the
processes of Rule 14a-8 is considered untimely is February 7, 1999.
12
<PAGE>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
- -------
(a) The following exhibit is filed herewith:
Exhibit 27. Financial Data Schedule
(b) The Company has not filed any Reports on Form 8-K during the quarter for
which this report is filed.
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 thereunto duly authorized.
CADE INDUSTRIES, INC.
---------------------
August 12, 1998
By /s/ Edward B. Stephens
______________________________
Edward B. Stephens
Vice President, Treasurer and
Chief Financial Officer
<PAGE>
CADE INDUSTRIES, INC.
* * *
EXHIBIT INDEX
TO
QUARTERLY REPORT ON FORM 10-Q FOR THE PERIOD ENDED
JUNE 30, 1998
EXHIBIT INCORPORATED HEREIN FILED
NUMBER DESCRIPTION BY REFERENCE TO: HEREWITH
- ------ ----------- ------------------- --------
27 Financial Data
Schedule X
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
THE CADE INDUSTRIES, INC. QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER ENDED
JUNE 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FORM 10-Q.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 157,870
<SECURITIES> 0
<RECEIVABLES> 13,423,254
<ALLOWANCES> 245,000
<INVENTORY> 16,039,660
<CURRENT-ASSETS> 33,745,387
<PP&E> 32,652,334
<DEPRECIATION> 14,618,416
<TOTAL-ASSETS> 57,438,523
<CURRENT-LIABILITIES> 21,664,401
<BONDS> 9,525,556
0
0
<COMMON> 22,349
<OTHER-SE> 25,438,217
<TOTAL-LIABILITY-AND-EQUITY> 57,438,523
<SALES> 46,011,756
<TOTAL-REVENUES> 46,011,756
<CGS> 35,390,047
<TOTAL-COSTS> 35,390,047
<OTHER-EXPENSES> 7,129,456
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 654,129
<INCOME-PRETAX> 2,838,124
<INCOME-TAX> 840,000
<INCOME-CONTINUING> 1,998,124
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,998,124
<EPS-PRIMARY> .09
<EPS-DILUTED> .09
</TABLE>
