This Conforming Paper Format Document is being submitted pursuant to Rule
901(d) of Regulation S-T.
Hastings Manufacturing Company and Subsidiaries
Condensed Consolidated Financial Statements
June 30, 1995 and 1994
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
___________________________________________________________________________
___________________________________________________________________________
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended Commission File Number
MARCH 31, 1996 1-3574
HASTINGS MANUFACTURING COMPANY
(Exact name of registrant as specified in its charter)
MICHIGAN 38-0633740
(State or other Jursidiction (I.R.S. Employer
of Incorporation or Organization) Identification No.)
325 NORTH HANOVER STREET
HASTINGS, MICHIGAN 49058
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: 616-945-2491
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 ______
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
<TABLE>
<CAPTION>
OUTSTANDING AT
CLASS APRIL 22, 1996
<S> <C> <C>
Common stock, $2 par value 388,813 shares
</TABLE>
___________________________________________________________________________
___________________________________________________________________________
Hastings Manufacturing Company and Subsidiaries
Form 10-Q
Contents
____________________________________
PART I. FINANCIAL INFORMATION
PAGE
Item 1. Financial Statements:
Report on Review by Independent Certified Public
Accountants 3
Condensed Consolidated Balance Sheets -
March 31, 1996 and December 31, 1995 4-5
Condensed Consolidated Statements of Operations -
Three Months Ended March 31, 1996 and 1995 6
Condensed Consolidated Statements of Cash Flows -
Three Months Ended March 31, 1996 and 1995 7
Notes to Condensed Consolidated Financial Statements 8-9
Review by Independent Certified Public Accountants 10
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 11-14
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 15
SIGNATURES 16
-2-
Report on Review by Independent Certified Public Accountants
_____________________________________________________
Board of Directors
Hastings Manufacturing Company
Hastings, Michigan
We have reviewed the accompanying condensed consolidated balance sheets of
Hastings Manufacturing Company and subsidiaries as of March 31, 1996, and
the related condensed consolidated statements of operations and cash flows
for the three-month periods ended March 31, 1996 and 1995, included in the
accompanying Securities and Exchange Commission Form 10-Q for the period
ended March 31, 1996. These condensed consolidated financial statements
are the responsibility of the Company's management.
We conducted our reviews in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical
procedures to financial data and making inquiries of persons responsible
for financial and accounting matters. It is substantially less in scope
than an audit conducted in accordance with generally accepted auditing
standards, the objective of which is the expression of an opinion regarding
the financial statements taken as a whole. Accordingly, we do not express
such an opinion.
As described in Note 6, the Company sold its filter product line assets
effective September 3, 1995.
Based on our reviews, we are not aware of any material modifications that
should be made to the accompanying condensed consolidated financial
statements for them to be in conformity with generally accepted accounting
principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet as of December 31, 1995, and the
related consolidated statements of operations, stockholders' equity and
cash flows for the year then ended (not presented herein). In our report
dated March 1, 1996, we expressed an unqualified opinion on those
consolidated financial statements. In our opinion, the information set
forth in the accompanying condensed consolidated balance sheet as of
December 31, 1995, is fairly stated in all material respects in relation to
the consolidated balance sheet from which it has been derived.
/S/ BDO SEIDMAN, LLP
BDO Seidman, LLP
Grand Rapids, Michigan
April 22, 1996
-3-
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
<TABLE>
Hastings Manufacturing Company and Subsidiaries
Condensed Consolidated Balance Sheets
____________________________________
<CAPTION>
MARCH 31, DECEMBER 31,
1996 1995
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash $ 874,859 $ 1,909,506
Accounts receivable, less allowance
for possible losses of $225,000 5,927,742 6,584,392
Refundable income taxes 219,664 226,037
Inventories:
Finished products 6,936,974 6,544,211
Work in process 670,457 769,917
Raw materials 2,690,732 2,621,566
Prepaid expenses and other assets 78,852 131,166
Future income tax benefits 2,033,578 2,108,578
TOTAL CURRENT ASSETS 19,432,858 20,895,373
PROPERTY AND EQUIPMENT
Land and improvements 648,767 648,266
Buildings 4,115,899 4,045,784
Machinery and equipment 16,712,496 16,061,415
21,477,162 20,755,465
Less accumulated depreciation 13,274,022 12,902,944
NET PROPERTY AND EQUIPMENT 8,203,140 7,852,521
INTANGIBLE PENSION ASSET 1,222,783 1,222,783
FUTURE INCOME TAX BENEFITS 6,547,891 6,548,202
OTHER ASSETS 1,054,343 1,028,689
$36,461,015 $37,547,568
</TABLE>
-4-
<TABLE>
Hastings Manufacturing Company and Subsidiaries
Condensed Consolidated Balance Sheets
____________________________________
<CAPTION>
MARCH 31, DECEMBER 31,
1996 1995
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable to banks $ 2,400,000 $ 1,500,000
Accounts payable 489,945 2,487,870
Accruals:
Compensation 388,501 384,909
Pension plan contribution 801,887 659,387
Taxes other than income 201,981 204,992
Miscellaneous 502,050 459,719
Current portion of postretirement
benefit obligation 1,541,126 1,541,126
Current maturities of
long-term debt 1,560,500 1,560,500
TOTAL CURRENT LIABILITIES 7,885,990 8,798,503
LONG-TERM DEBT,
less current maturities 3,125,000 3,490,625
PENSION AND DEFERRED COMPENSATION
OBLIGATIONS, less current portion 4,451,869 4,457,614
POSTRETIREMENT BENEFIT OBLIGATION,
less current portion 15,645,303 15,575,848
TOTAL LIABILITIES 31,108,162 32,322,590
STOCKHOLDERS' EQUITY
Preferred stock, $2 par value,
authorized and unissued
500,000 shares -- --
Common stock, $2 par value,
1,750,000 shares authorized;
388,813 shares issued
and outstanding 777,626 777,626
Additional paid-in capital 119,318 119,318
Retained earnings 6,975,643 6,854,865
-5-
Cumulative foreign currency
translation adjustment (593,304) (600,401)
Pension liability adjustment (1,926,430) (1,926,430)
TOTAL STOCKHOLDERS' EQUITY 5,352,853 5,224,978
$36,461,015 $37,547,568
</TABLE>
See accompanying independent accountants' review report and notes to
condensed consolidated financial statements.
-6-
<TABLE>
Hastings Manufacturing Company and Subsidiaries
Condensed Consolidated Statements of Operations
____________________________________
<CAPTION>
Three months ended March 31, 1996 1995
<S> <C> <C>
NET SALES $11,364,412 $16,334,723
COST OF SALES 8,302,914 12,504,031
Gross profit 3,061,498 3,830,692
EXPENSES
Advertising 101,974 303,575
Selling 981,632 1,542,875
General and administrative 1,793,061 2,143,238
Interest, net 66,116 241,050
Other, net (124,448) (2,724)
Total expenses 2,818,335 4,228,014
Income (loss) before
income tax expense (benefit) 243,163 (397,322)
INCOME TAX EXPENSE (BENEFIT) 84,000 (147,000)
NET INCOME (LOSS) $ 159,163 $ (250,322)
NET INCOME (LOSS) PER SHARE
OF COMMON STOCK $ .41 $ (.64)
AVERAGE SHARES OF
COMMON STOCK OUTSTANDING 388,813 388,668
DIVIDENDS PER SHARE OF COMMON STOCK $ .10 $ .10
</TABLE>
See accompanying independent accountants' review report and notes to
condensed consolidated financial statements.
-7-
<TABLE>
Hastings Manufacturing Company and Subsidiaries
Condensed Consolidated Statements of Cash Flows
____________________________________
<CAPTION>
Three months ended March 31, 1996 1995
<S> <C> <C>
OPERATING ACTIVITIES
Net income (loss) $ 159,163 $ (250,322)
Adjustments to reconcile net
income (loss) to net cash
for operating activities:
Depreciation 358,681 531,072
Deferred income taxes 75,000 --
Change in postretirement
benefit obligation 69,455 (8,656)
Changes in operating
assets and liabilities:
Accounts receivable 658,198 1,256,714
Refundable income taxes 6,718 50,055
Inventories (359,902) (922,892)
Prepaid expenses and other
current assets 52,345 12,779
Other assets (18,329) 9,353
Accounts payable and accruals (1,818,993) (1,061,602)
Net cash for operating activities (817,664) (383,499)
INVESTING ACTIVITIES
Capital expenditures (705,717) (245,784)
Investment of proceeds from
filter sale escrow (7,504) --
Net cash for investing activities (713,221) (245,784)
FINANCING ACTIVITIES
Proceeds from issuance of notes
payable to banks 2,700,000 5,645,605
Principal payments on notes
payable to banks (1,800,000) (4,939,090)
Principal payments on long-term debt (365,625) (429,067)
Dividends paid (38,924) (38,867)
Net cash from financing activities 495,451 238,581
EFFECT OF EXCHANGE RATE CHANGES ON CASH 787 272
-8-
NET DECREASE IN CASH (1,034,647) (390,430)
CASH, beginning of period 1,909,506 485,034
CASH, end of period $ 874,859 $ 94,604
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION
Cash paid during the period for:
Interest $ (126,762) $ 245,360
Income taxes, net of refunds (39) (197,392)
</TABLE>
See accompanying independent accountants' review report and notes to
condensed consolidated financial statements.
-9-
Hastings Manufacturing Company and Subsidiaries
Notes to Condensed Consolidated Financial Statements
____________________________________
NOTE 1 In the opinion of the management of Hastings Manufacturing Company
and subsidiaries (Company), the accompanying unaudited condensed
consolidated financial statements include all normal recurring
adjustments considered necessary to present fairly the financial
position as of March 31, 1996, and the results of operations and
cash flows for the three months ended March 31, 1996 and 1995.
Certain 1995 amounts have been reclassified to conform to the 1996
presentation.
NOTE 2 The results of operations for the three months ended March 31,
1996, are not necessarily indicative of the results for all of
1996.
NOTE 3 Net income (loss) per share is determined based on the weighted
average number of shares of common stock outstanding during each
period.
NOTE 4 The condensed consolidated financial statements include the
accounts of the Company and its wholly-owned subsidiaries. All
significant intercompany balances, transactions and stockholdings
have been eliminated.
The accompanying consolidated financial statements are condensed
and do not contain all of the information and footnote disclosures
required by generally accepted accounting principles for complete
financial statements.
NOTE 5 Under the terms of a debt agreement, the Company is subject to
specific limitations and restrictions pertaining to working
capital, net worth, dividends, etc. The Company has obtained a
waiver from the bank for its noncompliance with certain of these
limitations and restrictions.
On March 13, 1996, the Company terminated its interest rate swap
agreement with a commercial bank. This agreement, having a
notional principal amount at the time of termination of
$6,487,500, effectively limited the Company's interest rate
exposure to a fixed rate of 6.92% on its floating rate borrowings.
At termination, the Company received $204,500 from the bank as a
result of favorable interest rates. This amount is included in
other, net expenses in the accompanying 1996 condensed consolidated
statement of operations.
-10-
At the same time, in order to continue to limit its interest rate
exposure, the Company entered into an interest rate collar
agreement with a current notional principal amount of $3 million.
This agreement provides for a cap rate on floating rate borrowings
of 8.25% and a related floor rate of 6.75%.
NOTE 6 As disclosed in Note 2 to the Company's consolidated financial
statements included in its 1995 Annual Report on Form 10-K,
effective on September 3, 1995, the Company entered into an
agreement and sold its filter product line assets to CLARCOR Inc.
(CLARCOR) of Rockford, Illinois. The Company and CLARCOR also
entered into a Transition Agreement on that date whereby the
Company continues to manufacture and supply certain filters and
filter component parts to CLARCOR through a transition period,
which is expected to be completed by mid-1996. The Transition
Agreement also provides for reimbursement to the Company of certain
administrative costs directly related to the manufacture and
supply of filters and filter components to CLARCOR.
Total filter-related assets were as follows:
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
1996 1995
<S> <C> <C> <C>
Accounts receivable $ 800,000 $ 765,000
Inventory 1,110,000 1,458,000
$1,910,000 $2,223,000
</TABLE>
Of the total $720,400 employee severance benefits accrued and
expensed relating to the sale, $222,100 was paid through March 31,
1996 ($75,200 was paid during the three months ended March 31,
1996).
Expense reimbursement for the three months ended March 31, 1996,
included in net sales, amounted to $473,600.
Sales, exclusive of the above expense reimbursement, and estimated
operating profit (loss) amounts for filter operations were
approximately as follows:
<TABLE>
<CAPTION>
Three months ended March 31, 1996 1995
<S> <C> <C> <C>
Sales $2,728,000 $8,342,000
Estimated operating profit (loss) $ 297,000 $ (517,000)
</TABLE>
-11-
Hastings Manufacturing Company and Subsidiaries
Review by Independent Certified Public Accountants
____________________________________
The March 31, 1996 and 1995, condensed consolidated financial statements
included in this filing on Form 10-Q have been reviewed by BDO Seidman,
LLP, Independent Certified Public Accountants, in accordance with
established professional standards and procedures for such a review.
-12-
Hastings Manufacturing Company and Subsidiaries
Management's Discussion and Analysis of
Financial Condition and Results of Operations
____________________________________
As disclosed in the Company's September 30, 1995 Form 10-Q and December 31,
1995 Form 10-K, and as further updated in Note 6 to the accompanying
condensed consolidated financial statements, the Company sold its filter
operations and assets effective September 3, 1995 to CLARCOR Inc. of Rockford,
Illinois. Under the terms of a Transition Agreement associated with that sale,
results from certain filter operations continue to impact the Company's
financial results. Those items are noted in greater detail within the various
subheadings below.
NET SALES
Net sales in the first quarter of 1996 declined $4,970,311, or 30.4%, from
$16,334,723 in the first quarter of 1995 to $11,364,412. As disclosed in Note
6, sales volume from filter operations declined from $8,324,000 in the first
quarter of 1995 to $2,728,000 this quarter. As such, net sales from the
remaining product lines generated a net increase of $644,000, or 8%.
Increased piston ring activity in the first quarter of 1996 resulted in this
remaining product improvement. The Company experienced higher volume within
its traditional distributor, original equipment and private brand piston ring
markets. The distributor activity reflects new account activity as the
Company refocused its marketing efforts following the sale of its filter
operations. The original equipment volume reflects a level of continued
strength in the general economy while the private brand improvement reflects
the phasing in of several new accounts, which had only a minimal impact in
early 1995. The Company's export sales level was lower in the first
quarter of 1996 compared to the first quarter of 1995. The Company's
primary export representative has targeted a reduction in its 1996 volume
reflecting lower anticipated export sales and an internal inventory
reduction program. The Company's favorable inventory position through the
first quarter of 1996 further supported the sales improvement as a stronger
order fill level was maintained.
Net sales in the first quarter of 1995 decreased $549,760, or 3.5%, from
the first quarter of 1994. The decline primarily resulted from the 1994
inclusion of proceeds from the sale of technology and equipment to a
foreign customer and the Company's inability to meet total customer demands
during the first quarter of 1995 due to inventory shortages.
COST OF SALES AND GROSS PROFIT
Cost of sales during the first quarter of 1996 decreased $4,201,117, or
33.6%, from $12,504,031 in the first quarter of 1995 to $8,302,914. The 1995
first quarter's cost of sales, reported as $11,304,031 in the March 31, 1995
-13-
Hastings Manufacturing Company and Subsidiaries
Management's Discussion and Analysis of
Financial Condition and Results of Operations
____________________________________
Form 10-Q, has been restated to reflect the reclassification of various
operating expenses into cost of sales as begun in the first quarter of 1996.
These expenses include the group health care costs associated with production
personnel and distribution costs associated with product handling and shipping.
The resulting gross profit margin for the first quarter of 1995 is 23.5%. The
primary contributor to that relationship is the noted reduction of filter
volume in the current year. The filter product line historically generated
a lower gross profit margin than did the remaining product lines. Within
the remaining product lines, the gross profit margin declined slightly from
the 1995 results due primarily to a change in sales mix. The sales increase
noted within the original equipment and private brand markets generates a
lower margin than the distributor based markets. The product cost
components of material, labor and overhead have held quite steady through
the past year with only minimal impact upon the gross margin results. The
first quarter of 1996 was, however, favorably impacted by a reduction in
the LIFO inventory reserve as the remaining filter inventory owned by the
Company was reduced. This inventory reduction, with a corresponding LIFO
reserve decline, should continue through the next several quarters.
The previously reported 1995 first quarter's gross profit margin declined
from the first quarter of 1994. The 1994 results had been favorably
impacted by the margin realized on the technology and equipment sales.
EXPENSES
Total expenses during the first quarter of 1996, excluding net interest,
decreased $1,234,745, or 31.0%, from $3,986,964 for the first quarter of
1995 to $2,752,219. The filter operations sale is a primary factor in this
relationship as the Company scaled back various programs and personnel
relative to the refocused operations. Advertising expenses reflect the absence
of all filter related materials combined with lower support personnel costs and
reduced cooperative advertising programs. Selling expenses also reflect a
significant reduction in sales staff levels and support costs combined with
the near elimination of inventory conversion costs as previously required
within the filter markets. General and administrative expenses reflect
lower support personnel levels combined with a general reduction in most of
the office support cost line items. Most of the operating expenses have
now been rolled back to reflect the future direction of the remaining
operations. As discussed in Note 6, however, certain support costs,
included in general and administrative expenses, have continued through
the transition period. Those items are billed back to the purchaser on a
monthly basis. The other, net expense category reflects a net income
amount in the comparative periods. The 1995 results reflect the impact of
-14-
Hastings Manufacturing Company and Subsidiaries
Management's Discussion and Analysis of
Financial Condition and Results of Operations
____________________________________
several immaterial factors. The 1996 first quarter results, however,
reflect the impact of several significant items. As detailed in Note 5 to
the condensed consolidated financial statements, the results for the
first quarter of 1996 reflect a gain of $204,500 from the termination of an
interest rate swap agreement during a temporary, favorable upturn in interest
rates. That income amount was partially offset in this first quarter by
approximately $80,000 of costs associated with the relocation of products
from the Knoxville facility to the Hastings, Michigan facility. That
relocation, scheduled to be completed by late May 1996, will likewise
negatively impact operations in the second quarter of 1996.
INTEREST, NET
The interest, net amount decreased $174,934, or 72.6%, from $241,050 in the
first quarter of 1995 to $66,116 in the first quarter of 1996. Following
the sale of the filter operations, various short-term and long-term debt
obligations were liquidated. While some debt balances remain in place,
certain invested funds, dedicated to near-term and long-term capacity
improvements, remain on-hand as well. The net impact from these factors,
lower net borrowings and earnings on the invested funds, resulted in the
favorable reduction.
Interest expense increased $26,937, or 12.6%, in the first quarter of 1995
from the first quarter of 1994. The level of outstanding debt during the
first quarter of 1995 was higher than that of the first quarter of 1994.
In addition, the interest rate carried on the variable-rate debt in
excess of the Company's swap agreement balance was higher in early 1995
than the rate in early 1994.
LIQUIDITY AND CAPITAL RESOURCES
The Company's primary cash requirements are for operating expenses,
including labor costs and raw materials, and for funding accounts
receivable, capital expenditures and long-term debt service. Historically,
the Company's primary sources of cash have been from operations and from
bank borrowings. The sale of the Company's filter product line assets and
operations in September 1995 had, however, a significant impact upon
relationships of the various cash flow activities. Following the full
divestiture of the filter operations, and the restructuring required
to support the smaller organization, the Company expects to generate
sufficient future cash flows from operations and bank borrowings to fund
its growth and operating needs.
-15-
Hastings Manufacturing Company and Subsidiaries
Management's Discussion and Analysis of
Financial Condition and Results of Operations
____________________________________
During the first quarter of 1996, the Company applied net cash of $817,664
to operating activities. Inventories increased through the first quarter
of 1996 as the Company targeted its order fill capabilities. In addition, the
Company reduced the level of its accounts payable and accrued liabilities
during the first quarter of 1996 via scheduled payments to vendors and the
liquidation of accruals from year-end activities. The first quarter
traditionally absorbs a high level of these accrual liquidations. Such
cash needs were partly offset by a reduction in trade accounts receivable,
depreciation on the remaining capital assets and by the first quarter's net
income results.
During the first quarter of 1995, the Company applied net cash of $383,499
to operating activities. The 1995 first quarter's operating activities'
factors were similar to the 1996 items with increased inventories and
decreased payables and accruals offset by a decline in accounts receivable.
During the first quarter of 1996, the Company invested $705,717 in capital
expenditures. This included new equipment to expand certain production
capabilities within the existing facilities and to upgrade sections of
those facilities relative to the relocation of piston ring, tool and
printed materials inventories to Hastings, Michigan. The Company
anticipates the full year 1996 capital expenditures to slightly exceed the
1995 total of $2,053,626 as it continues to enhance its piston ring
manufacturing capabilities. Certain funds resulting from the filter
operations sale have been targeted for most of that anticipated outlay.
While the Company relied in part upon allocated funding for the capital
expenditures outlays, the use of net cash for operations activities in
the first quarter of 1996 required added reliance upon its short-term credit
lines as detailed in the financing activities section of the cash flow
statement. With the balance of funding required for the completion of the
inventory move scheduled in the second quarter, some further reliance upon
those lines may be necessary. As of March 31, 1996, the Company had available
approximately $4.1 million of unused capacity under its short-term lines of
credit. Despite the near-term cash flow needs driven by the pending
relocation, the Company believes that current financing agreements with its
lenders, along with the cash flow generated by future operating activities
and funds targeted for capital expenditures, will be sufficient to meet its
working capital, capital expenditure and dividend requirements through
1996.
-16-
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits. The following document is filed as an exhibit to
this report on Form 10-Q:
EXHIBIT
NUMBER DOCUMENT
27 Financial Data Schedule
(b) Reports on Form 8-K. No reports on Form 8-K have been filed
during the quarter for which this report is filed.
-17-
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on his behalf by the
undersigned thereunto duly authorized.
HASTINGS MANUFACTURING COMPANY
Date: MAY 15, 1996 By: /S/ MONTY C. BENNETT
Monty C. Bennett
Its Vice-President, Employee Relations,
Secretary and Director
Date: MAY 15, 1996 By: /S/ THOMAS J. BELLGRAPH
Thomas J. Bellgraph
Its Vice President, Finance
-18-
EXHIBIT INDEX
EXHIBIT
NUMBER DOCUMENT
27 Financial Data Schedule
-19-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE HASTINGS MANUFACTURING COMPANY AND SUBSIDIARIES FORM
10-Q FOR THE THREE MONTHS ENDED MARCH 31, 1996, AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 874,859
<SECURITIES> 0
<RECEIVABLES> 5,927,742
<ALLOWANCES> 225,000
<INVENTORY> 10,298,163
<CURRENT-ASSETS> 19,432,858
<PP&E> 21,477,162
<DEPRECIATION> 13,274,022
<TOTAL-ASSETS> 36,461,015
<CURRENT-LIABILITIES> 7,885,990
<BONDS> 4,685,500
<COMMON> 777,626
0
0
<OTHER-SE> 4,575,227
<TOTAL-LIABILITY-AND-EQUITY> 36,461,015
<SALES> 11,364,412
<TOTAL-REVENUES> 11,364,412
<CGS> 8,302,914
<TOTAL-COSTS> 8,302,914
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 55,000
<INTEREST-EXPENSE> 138,384
<INCOME-PRETAX> 243,163
<INCOME-TAX> 84,000
<INCOME-CONTINUING> 159,163
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 159,163
<EPS-PRIMARY> .41
<EPS-DILUTED> .41
</TABLE>
