SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15 (d)
of the Securities Exchange Act of 1934
[x] Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities Exchange
Act of 1934.
For the Period ended December 31, 1999.
OR
[ ] Transition Report Pursuant to Section 13 or 15 (d) of the Securities
Exchange Act of 1934.
Commission File Number: 0-13143
INNOVEX, INC.
(Exact name of registrant as specified in its charter)
Minnesota 41-1223933
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
530 Eleventh Avenue South, Hopkins, Minnesota 55343-9904
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (612) 938-4155
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
As of February 2, 2000, 14,823,704 shares of the registrant's common stock, $.04
par value per share, were outstanding.
Exhibit Index, page 12
<PAGE>
PART 1: ITEM 1 FINANCIAL INFORMATION
INNOVEX, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
December 31, September 30,
1999 1999
ASSETS (Unaudited) (Audited)
- ------ ------------ ------------
<S> <C> <C>
Current assets:
Cash and equivalents $ 3,969,666 $ 6,231,430
Short-term investments 11,695,000 19,310,000
Accounts receivable, 23,905,962 28,498,621
Inventories 13,293,196 15,891,945
Income taxes receivable 4,540,852 --
Other current assets 6,444,830 6,385,053
------------ ------------
Total current assets 63,849,506 76,317,049
Property, plant and equipment, net of accumulated depreciation
of $20,640,000 and $18,740,000 81,574,858 87,158,237
Intangible and other assets, net of accumulated amortization of
$708,000 and $506,000 7,631,737 4,841,025
Deferred income taxes 10,897,908 10,442,908
Other assets 46,546 46,905
------------ ------------
$164,000,555 $178,806,124
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
Current liabilities:
Current maturities of long-term debt $ 613,233 $ 307,702
Line of credit 14,163,931 9,163,931
Accounts payable 13,012,146 25,104,517
Accrued compensation 831,337 932,573
Income taxes payable -- 592,264
Other accrued liabilities 13,301,434 9,195,392
------------ ------------
Total current liabilities 41,922,081 45,296,379
Long-term debt, less current maturities 26,692,535 26,375,546
Stockholders' equity:
Common stock, $.04 par value; 30,000,000 shares authorized,
14,823,704 and 14,822,104 shares issued and outstanding 592,948 592,884
Capital in excess of par value 16,195,616 16,181,730
Retained earnings 78,597,375 90,359,585
------------ ------------
Total stockholders' equity 95,385,939 107,134,199
------------ ------------
$164,000,555 $178,806,124
============ ============
</TABLE>
See accompanying notes to condensed consolidated financial statements.
Page 2 of 13
<PAGE>
INNOVEX, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended December 31,
1999 1998
---- ----
Net sales $ 44,724,625 $ 22,027,861
Costs and expenses:
Cost of sales 40,009,449 14,951,328
Selling, general and administrative 4,235,842 2,423,189
Engineering 1,704,115 921,506
Restructuring charges 13,785,085 --
Net interest (income) expense 526,829 (394,419)
Net other (income) expense 194,660 (71,510)
------------ ------------
Income (loss) before taxes (15,731,355) 4,197,767
Provision for income taxes (4,562,093) 1,203,000
------------ ------------
Net income (loss) $(11,169,262) $ 2,994,767
============ ============
Net income (loss) per share:
Basic $ (0.75) $ 0.20
============ ============
Diluted $ (0.75) $ 0.20
============ ============
Weighted average shares outstanding:
Basic 14,823,634 14,780,474
============ ============
Diluted 14,823,634 15,062,102
============ ============
See accompanying notes to condensed consolidated financial statements.
Page 3 of 13
<PAGE>
INNOVEX, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended December 31,
1999 1998
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net income (loss) $(11,169,262) $ 2,994,767
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:
Depreciation and amortization 2,988,733 1,784,929
Restructuring and asset impairment charges 13,785,085 --
Other non-cash charges (credits) (120,682) --
Changes in operating assets and liabilities:
Accounts receivable 4,416,659 (2,702,619)
Inventories 2,218,749 (823,831)
Other current assets (59,777) (228,003)
Accounts payable (12,092,370) (82,334)
Other liabilities (2,643,082) 1,995
Income taxes payable (5,588,116) 1,203,000
------------ ------------
Net cash provided by (used in) operating activities (8,264,063) 2,147,904
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (2,909,832) (2,235,383)
Business acquisition (3,750,000) --
Proceeds from sale of assets 3,609 34,522
Purchase of held-to-maturity securities -- (5,160,000)
Maturities of held-to-maturity securities 7,615,000 8,825,000
------------ ------------
Net cash provided by (used in) investing activities 958,777 1,464,139
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on long-term debt 622,520 (20,479)
Net activity on line of credit 5,000,000 --
Proceeds from exercise of stock options 13,950 18,966
Dividends paid (592,948) (517,286)
------------ ------------
Net cash provided by (used in) financing activities 5,043,522 (518,799)
Increase (decrease) in cash and equivalents (2,261,764) 3,093,244
Cash and equivalents at beginning of year 6,231,430 17,021,264
------------ ------------
Cash and equivalents at end of period $ 3,969,666 $ 20,114,508
============ ============
</TABLE>
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest was $607,000 and $15,000 in 1999 and 1998, respectively.
Income tax payments were $107,000 and $-0- in 1999 and 1998, respectively.
See accompanying notes.
Page 4 of 13
<PAGE>
INNOVEX INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - FINANCIAL INFORMATION
The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with the instructions on Form 10-Q and do not include all
of the information and footnotes required by generally accepted accounting
principles for complete financial statements. The unaudited condensed
consolidated financial statements include the accounts of Innovex, Inc. and its
subsidiaries (the "Company") after elimination of all significant intercompany
transactions and accounts. In the opinion of management, all adjustments
(consisting of normal recurring adjustments) necessary for a fair presentation
of operating results have been made. Operating results for interim periods are
not necessarily indicative of results that may be expected for the year as a
whole. The Company utilizes a fiscal year that ends on the Saturday nearest to
September 30. For clarity of presentation, the Company has described all periods
as if they end at the end of the calendar quarter. For further information,
refer to the consolidated financial statements and footnotes included in the
registrant's annual report on Form 10-K for the year ended September 30, 1999.
Preparation of the Company's condensed consolidated financial statements
requires management to make estimates and assumptions that affect reported
amounts of assets and liabilities and related revenues and expenses. Actual
results could differ from these estimates.
NOTE 2 - RESTRUCTURING CHARGES
LEAD WIRE ASSEMBLY PRODUCT LINE DISPOSITION-
During the fourth quarter of fiscal 1999, the Company recorded a charge of
approximately $2,765,000 related to the discontinuation of the lead wire
assembly product line. The charge included approximately $871,000 related to
asset impairment, $1,403,000 for the write off of inventory and supplies,
$197,000 in employee severance, $156,000 in facility abandonment costs and
$138,000 to increase the accounts receivable reserve. The disposition will be
substantially complete by March 2000.
MANUFACTURING OPERATIONS RESTRUCTURING-
The fiscal 2000 first quarter includes a $13,785,085 restructuring charge
related to restructuring the Company's manufacturing operations. The
restructuring is primarily related to moving operations from the Company's Agua
Prieta, Mexico facility to its new facility in Lamphun, Thailand. The charge was
recorded pursuant to a plan announced in November 1999. The charge included
approximately $6,581,000 related to asset impairment of property and equipment,
$380,000 for the write off of inventory and supplies, $176,000 for increasing
the accounts receivable reserve, and accrued liabilities of $2,101,000 for
facility abandonment costs and $4,547,000 in employee severance and benefits.
This restructuring will be substantially complete by September 2000.
As of December 31, 1999, the following amounts were accrued:
Balance at Balance at
September December
30, 1999 Activity 31, 1999
(IN THOUSANDS)
Lead wire product assembly line disposition
Employee severance ........................ $ 197 $ (26) $ 171
Facility abandonment costs ................ 156 -- 156
------- ------- -------
.......................................... 353 (26) 327
Manufacturing network restructure
Employee severance ........................ -- 4,547 4,547
Facility abandonment costs ................ -- 1,740 1,740
------- ------- -------
.......................................... -- 6,287 6,287
Total ............................. $ 353 $ 6,261 $ 6,614
======= ======= =======
Page 5 of 13
<PAGE>
NOTE 3 - EARNINGS PER SHARE
The Company's basic net income per share is computed by dividing net income by
the weighted average number of outstanding common shares. The Company's diluted
net income per share is computed by dividing net income by the weighted average
number of outstanding common shares and common share equivalents relating to
stock options when dilutive. Options to purchase 771,970 shares of common stock
with a weighted average exercise price of $14.72 were outstanding during the
three month period ending December 31, 1999, but were excluded from the
computation of common share equivalents because they were not dilutive. Options
to purchase 191,050 shares of common stock with a weighted average exercise
price of $26.33 were outstanding during the three month period ending December
31, 1998, but were excluded from the computation of common share equivalents
because they were not dilutive.
NOTE 4 - INVENTORIES
Inventories are comprised of the following:
December 31, September 30,
--------------------------
1999 1999
--------------------------
Raw materials and purchased parts $ 7,771,522 $ 8,753,336
Work-in-process and finished goods 5,521,674 7,138,609
--------------------------
$13,293,196 $15,891,945
==========================
PART I: ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
THE COMPANY
On July 7, 1999, Innovex, Inc. and its subsidiaries (the "Company") commenced a
tender offer to purchase all of the issued and outstanding stock of ADFlex
Solutions, Inc. ("ADFlex") at a purchase price of $3.80 per share. The tender
offer closed on August 3, 1999. Approximately 76% of the outstanding shares of
ADFlex were tendered in response to the offer. On August 9, 1999, the Company
consummated the purchase of the tendered shares. The remaining approximately 24%
of ADFlex issued and outstanding common stock not tendered in response to the
tender offer was acquired by the Company through a merger transaction completed
on September 14, 1999. The total ADFlex purchase price, including transaction
costs, change in control payments and all of the issued and outstanding common
stock was approximately $37 million. The Company also obtained credit facilities
totaling in principal amount $40 million, which were utilized to refinance
ADFlex's outstanding debt, pay down current liabilities and pay related
transaction costs. Prior to the acquisition, ADFlex was a leading supplier of
flexible circuit based solutions to the computer, computer peripheral,
communications and consumer electronics industries. Applications for these
flex-based interconnects include cellular phones, hard disk drives, other
storage systems, high-end consumer products, notebook computers, pagers and
personal communication systems. ADFlex's diverse customer and industry base will
reduce Innovex's reliance on the disk drive industry.
Prior to the ADFlex acquisition, the Company had one primary operating group,
Innovex Precision Components. The Company is combining the newly acquired ADFlex
operation into its existing operations of designing and manufacturing flexible
circuits.
Prior to fiscal 1999, the Company operated through three divisions, Precision
Products (Precision), Litchfield Precision Components (LPC) and Iconovex. Each
division had its own administrative, engineering, manufacturing and marketing
organizations. During the quarter ending September 30, 1998, the Company
combined the operations of its two core operating divisions, Precision and LPC
into one operating division, Innovex Precision Components. The combination
merged the rapidly growing LPC flexible circuit fabrication and chemical etching
operations with Precision's high volume fine wire
Page 6 of 13
<PAGE>
manufacturing expertise. The combination also allowed Innovex to leverage
Precision's disk drive industry market and trade knowledge to disk drive
industry flexible circuit applications as the industry transitioned from wire
interconnects.
Prior to the divisional combination, the largest division, Precision, developed,
engineered and manufactured specialty precision electromagnetic products for
original equipment manufacturers ("OEM's"). Lead wire assemblies for the thin
film disk drive market were the division's primary product. Lead wire assemblies
are fine twisted magnet wires that connect the back end electronics of a disk
drive with the inductive or magneto resistive thin film heads that read and
write information on the disk. Since the divisional combination, the lead wire
assembly revenue declined as anticipated. As a result, during the fiscal 1999
fourth quarter, charges of $2.8 million were recorded to account for the
discontinuance of this product line.
LPC, prior to the fiscal 1998 divisional combination, designed and manufactured
highly complex flexible circuitry and chemically machined components for
computer, computer peripheral, medical and other applications. The Company
purchased Litchfield Precision Components, Inc. on May 16, 1996. This
acquisition reduced the Company's reliance on the disk drive industry while
providing an entry into the large and rapidly growing flexible circuit market.
Innovex's flexible circuit operation is one of a limited number of companies in
the world able to produce flexible circuits with line and spacing tolerances of
less than 2 mils for the high-end portion of the flexible circuit market.
The Iconovex subsidiary was established in fiscal 1994 to market and further
develop a technologically advanced software product purchased in November 1993.
In October 1997, Iconovex became the 51% owner of a joint venture with Solutions
Corporation of America. The operations of Iconovex and its joint venture, Smart
Solution, were discontinued in June 1999 as a result of revenue not developing
as expected and the Company recorded a $1.7 million charge related to this
disposition.
Innovex, Inc. was incorporated under the laws of the State of Minnesota in 1972.
Its principal executive offices are located at 530 Eleventh Avenue South,
Hopkins, Minnesota 55343-9904 and its telephone number is (612) 938-4155.
Products are developed and manufactured through the Company's wholly owned
subsidiaries, Innovex Precision Components, Inc., Innovex Southwest, Inc.,
Innovex (Thailand) Ltd. and Innovex Limited. Innovex Precision Components, Inc.
and Innovex Ltd. are Minnesota corporations. Innovex Southwest, Inc. is a
Delaware corporation and Innovex (Thailand) Ltd. is a Thailand corporation.
RESULTS OF OPERATIONS
NET SALES
The Company's net sales from operations totaled $44,725,000 for the quarter, up
103% from $22,028,000 reported in fiscal 1999. The increase in net sales for the
first quarter of fiscal 2000 was due, in part to the increase in flexible
circuit revenue from the disk drive industry. The majority of the increase was
due to revenue generated from the telecommunication, network system, consumer
and other industries related to the acquisition of ADFlex Solutions, Inc. in
August, 1999. These increases offset a reduction in revenue generated from lead
wire interconnects as the disk drive industry completes its transition to
integrated interconnects including the Company's Head Interconnect Flex (HIF)
and Flex Suspension Assembly (FSA). Less than 3 percent of the revenue for the
quarter was generated by lead wire assemblies as compared to 57 percent for the
same quarter last year.
Revenue from the disk drive industry generated 52% of the Company's revenue for
the quarter. In addition, 15% of the revenue was generated by flexible circuits
for network system applications, 14% from telecommunication applications, 8%
from consumer applications and 11% from applications from other industries. The
acquisition of ADFlex has reduced the Company's dependence on the disk drive
industry significantly from its historical levels of 85-90% of revenue. Fiscal
2000 should benefit from continued growth in the demand for high technology
flexible circuit products including the Company's
Page 7 of 13
<PAGE>
HIF, FSA and Bridge Flex. Reductions in lead wire assembly revenue should not
have a significant impact on fiscal 2000 revenue as the transition away from
lead wire assembly interconnects to integrated interconnects was nearly complete
at the end of fiscal 1999. Significant progress was made during fiscal 1999 in
gaining customer acceptance of the Company's FSA product which will be integral
to increasing revenue in the last half of fiscal 2000. Revenue is expected to
increase significantly in fiscal 2000 as a result of the ADFlex acquisition.
GROSS MARGINS
The Company's gross profit as a percent of sales for the quarter decreased to
11%, from the 32% reported for the fiscal 1999 first quarter. The decrease was
due to the quarter results including operating results related to the
acquisition of ADFlex Solutions, Inc. The ADFlex revenue generates a lower gross
margin percent than the high-end Innovex flexible circuit revenue due to the
higher material content of the assembly portion of the business and lower level
of technical tolerances required. Gross margins for the high-end flexible
circuit revenue were lower as compared to the prior year due to reduced yields
and costs related to new capacity installation.
The increase in fiscal 2000 sales volume related to the ADFlex acquisition
should result in an increase in gross margin dollars while causing a decrease in
the overall gross margin percent. The Company anticipates stable to growing
gross margin percents on the pre-acquisition Innovex revenue during fiscal 2000
through improved yield performance and increased utilization of the high volume
manufacturing facility.
OPERATING EXPENSES
Operating expenses were 13.3% of sales for the current quarter, as compared to
15.2% in the prior year's first quarter. The decrease in operating expenses as a
percent of sales for the current year is primarily due to increased revenue as a
result of the ADFlex acquisition. Total operating expenditures increased by
approximately $2.5 million as a result of the ADFlex acquisition. Fiscal 2000
operating expenses as a percent of sales are expected to decrease as a percent
of sales and increase in total as a result of the ADFlex acquisition.
RESTRUCTURING CHARGES
A restructuring charge of $13,785,000 was recorded during the first quarter of
fiscal 2000 related to the restructuring of the Company's manufacturing
operations. The restructuring is primarily related to moving operations from the
Company's Agua Prieta, Mexico facility to its new facility in Lamphun, Thailand.
The majority of this charge includes employee severance, asset impairment of
property and equipment and facility abandonment costs. The restructuring is
expected to significantly reduce operating costs by the end of the fiscal year
as a result of consolidating facilities and the lower Thailand cost structure.
OPERATING PROFIT (LOSS)
The consolidated operating loss of $(15,010,000) in the current quarter was down
from the $3,732,000 profit for the prior year first quarter. The reduction is
primarily due to the restructuring charge recorded during the quarter and the
increase in costs related to the acquired ADFlex operation.
NET INCOME (LOSS)
Consolidated net loss for the fiscal 2000 first quarter was $(11,169,000) as
compared to net income of $2,995,000 for the prior year. Basic and diluted net
loss per share were ($0.75) as compared to net income per share of $0.20 for the
prior year first quarter.
LIQUIDITY AND CAPITAL RESOURCES
Cash and short-term investments decreased to $15.7 million at December 31, 1999
from $25.5 million at September 30, 1999. This decrease was primarily due to the
acquisition of the Company's Thailand subcontractor for $3.8 million, capital
expenditures of $3.0 million and reduction of accounts payable by $12.1 million.
Page 8 of 13
<PAGE>
Accounts receivable and inventory at December 31, 1999 decreased by $4.6 and
$2.6 million from September 30, 1999 due to the lower level of sales activity
toward the end of the quarter.
Accounts payable at December 31, 1999 decreased by $12.1 million primarily due
to the payment of older payables obtained with the ADFlex acquisition and the
lower level of purchasing activity toward the end of the quarter.
Working capital totaled $21.9 million and $31.0 million at December 31, 1999 and
September 30, 1999. The decrease was primarily due to the acquisition of the
Company's subcontractor and capital expenditures made during the quarter.
Since September 30, 1999, the Company has invested $2.9 million in capital
expenditures and $3.8 million to acquire the Company's Thailand subcontractor.
Capital expenditures include FSA attachment equipment, equipment to expand the
high volume flexible circuit manufacturing facility capacity and progress
payments related to the construction of a material manufacturing facility in
Maple Plain, Minnesota. Capital expenditures of approximately $24 million are
expected during the remainder of fiscal 2000. These expenditures will increase
the Company's high volume flexible circuit manufacturing and FSA production
capacities, complete the move of the Mexican operation to Thailand and equip and
complete construction of a facility to produce material for use in flexible
circuit manufacturing.
Existing credit facilities, cash and investments and cash generated from
operations are believed to be sufficient to support Company operations at
current levels and capital expenditures in fiscal 2000. Additional funding may
be required to fund anticipated growth. Management believes the Company's
resources are sufficient to secure any growth related funding requirements.
YEAR 2000 UPDATE
Prior to December 31, 1999, the Company prepared a plan of action to ensure that
it was not adversely affected by the year 2000 equipment and software failures
that may arise in software applications and equipment with embedded logic where
two-year digits are used to define the applicable year. The Company incurred
costs of less than $100,000 to prepare for year 2000 issues.
Based on currently available information, the Company has not experienced any
material adverse impact from year 2000 issues. The Company will continue to
monitor its internal systems, products, supplies and customers on an on going
basis.
FORWARD LOOKING STATEMENTS
Statements included in this Management's Discussion and Analysis of Financial
Condition and Results of Operations, elsewhere in the Company's Form 10-Q and in
future filings by the Company with the SEC, except for the historical
information contained herein and therein, are "forward-looking statements" that
involve risks and uncertainties. These risks and uncertainties include the
timely availability and acceptance of new products, the impact of competitive
products and pricing, interruptions in the Company's operations or those of its
suppliers or major customers as may be caused by problems arising from the year
2000, the successful move of the Mexican operation to Thailand and the
successful integration of the ADFlex acquisition. In addition, a significant
portion of the Company's revenue is generated from the disk drive and
telecommunication industries and any changes in the structure, technology or
outlook of these industries could have a significant impact on the Company's
operations. The Company disclaims any obligation subsequently to revise any
forward-looking statements to reflect subsequent events or circumstances or the
occurrence of unanticipated events.
ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Page 9 of 13
<PAGE>
There were no material changes in the Company's market risk during the
three-month period ended December 31, 1999.
PART II - OTHER INFORMATION
Responses to Items 1 through 5 are omitted since these items are either
inapplicable or the response thereto would be negative.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a) Exhibits
27 Financial Data Schedule
b) Reports on Form 8-K
None.
Page 10 of 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.
INNOVEX, INC.
Registrant
Date: February 11, 2000
By \s\ William P. Murnane
William P. Murnane
President and Chief Executive Officer
By \s\ Douglas W. Keller
Douglas W. Keller
Vice President, Finance
Page 11 of 13
<PAGE>
INDEX TO EXHIBITS
Exhibits Page
27 Financial Data Schedule 13
Page 12 of 13
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S FINANCIAL STATEMENTS INCLUDED IN THE 10-Q FOR THE QUARTER ENDED
DECEMBER 31, 1999 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> SEP-30-2000
<PERIOD-END> DEC-31-1999
<CASH> 3,970
<SECURITIES> 11,695
<RECEIVABLES> 25,432
<ALLOWANCES> 1,526
<INVENTORY> 13,293
<CURRENT-ASSETS> 63,850
<PP&E> 102,215
<DEPRECIATION> 20,640
<TOTAL-ASSETS> 164,001
<CURRENT-LIABILITIES> 41,922
<BONDS> 26,693
0
0
<COMMON> 593
<OTHER-SE> 94,793
<TOTAL-LIABILITY-AND-EQUITY> 164,001
<SALES> 44,725
<TOTAL-REVENUES> 44,725
<CGS> 40,009
<TOTAL-COSTS> 40,009
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 772
<INCOME-PRETAX> (15,731)
<INCOME-TAX> (4,562)
<INCOME-CONTINUING> (11,169)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (11,169)
<EPS-BASIC> (0.75)
<EPS-DILUTED> (0.75)
</TABLE>
