SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended August 31, 1997
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
1-6699
INTERNATIONAL MULTIFOODS CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 41-0871880
(State or other jurisdiction of
incorporation or organization) (I.R.S. Employer Identification No.)
33 South 6th Street, Minneapolis, Minnesota 55402
(Address of principal executive offices) (Zip Code)
(612) 340-3300
(Registrant's telephone number, including area code)
(not applicable)
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by 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____
The number of shares outstanding of the registrant's Common Stock,
par value $.10 per share, as of September 30, 1997 was 18,461,144.
PART I. FINANCIAL INFORMATION
INTERNATIONAL MULTIFOODS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Earnings
(unaudited)
(in thousands, except per share amounts)
THREE MONTHS ENDED SIX MONTHS ENDED
--------------------- ------------------------
Aug. 31, Aug. 31, Aug. 31, Aug. 31,
1997 1996 1997 1996
- ----------------------------------------------------------------------
Net sales $629,213 $634,499 $1,296,399 $1,260,572
Cost of sales (540,723) (539,729) (1,114,410) (1,076,487)
- ----------------------------------------------------------------------
Gross profit 88,490 94,770 181,989 184,085
Delivery and
distribution (40,101) (41,573) (80,758) (82,004)
Selling, general
and administrative (39,134) (42,836) (84,449) (85,134)
Unusual items - - - (3,600)
- ----------------------------------------------------------------------
Operating earnings 9,255 10,361 16,782 13,347
Interest, net (3,049) (4,440) (7,533) (8,730)
Other income
(expense), net 278 (214) 92 8
- ----------------------------------------------------------------------
Earnings before
income taxes 6,484 5,707 9,341 4,625
Income taxes (1,945) (1,712) (2,802) (1,063)
- ----------------------------------------------------------------------
Net earnings $ 4,539 $ 3,995 $ 6,539 $ 3,562
======================================================================
Net earnings per share
of common stock $ .25 $ .22 $ .36 $ .20
======================================================================
Average shares
of common stock
outstanding 18,234 17,983 18,125 17,981
======================================================================
Dividends per
share of common
stock $ .20 $ .20 $ .40 $ .40
======================================================================
See accompanying notes to consolidated condensed financial statements.
INTERNATIONAL MULTIFOODS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(in thousands)
Condensed
from audited
financial
(Unaudited) statements
Aug. 31, Feb. 28,
1997 1997
- ------------------------------------------------------------------------
Assets
Current assets:
Cash and cash equivalents $ 5,568 $ 8,753
Trade accounts receivable, net 159,020 207,459
Inventories 269,622 283,948
Other current assets 64,620 63,096
- -----------------------------------------------------------------------
Total current assets 498,830 563,256
- -----------------------------------------------------------------------
Property, plant and equipment, net 219,239 225,357
Goodwill, net 86,311 87,641
Other assets 38,602 39,034
- -----------------------------------------------------------------------
Total assets $842,982 $915,288
=======================================================================
Liabilities and Shareholders' Equity
Current liabilities:
Notes payable $ 18,724 $ 88,201
Current portion of long-term debt 30,064 6,790
Accounts payable 204,231 206,966
Other current liabilities 63,678 70,037
- -----------------------------------------------------------------------
Total current liabilities 316,697 371,994
- -----------------------------------------------------------------------
Long-term debt 178,769 202,328
Employee benefits and other liabilities 52,268 51,388
- -----------------------------------------------------------------------
Total liabilities 547,734 625,710
- -----------------------------------------------------------------------
Shareholders' equity:
Common stock 2,184 2,184
Other shareholders' equity 293,064 287,394
- -----------------------------------------------------------------------
Total shareholders' equity 295,248 289,578
- -----------------------------------------------------------------------
Commitments and contingencies
- -----------------------------------------------------------------------
Total liabilities and shareholders' equity $842,982 $915,288
=======================================================================
See accompanying notes to consolidated condensed financial statements.
INTERNATIONAL MULTIFOODS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Cash Flows
(unaudited)
(in thousands)
SIX MONTHS ENDED
---------------------
Aug. 31, Aug. 31,
1997 1996
- ---------------------------------------------------------------------
Cash flows from operations:
Net earnings $ 6,539 $ 3,562
Adjustments to reconcile net earnings
to cash provided by operations:
Depreciation and amortization 15,283 14,970
Deferred income tax expense (benefit) 968 (614)
Provision for losses on receivables 183 2,376
Provision for unusual charges - 3,600
Changes in operating assets and liabilities:
Accounts receivable 47,131 4,879
Inventories 13,703 (25,816)
Other current assets (1,913) 1,072
Accounts payable (1,865) 15,798
Other current liabilities (6,099) (7,062)
Other, net (604) 1,239
- ----------------------------------------------------------------------
Cash provided by operations 73,326 14,004
- ----------------------------------------------------------------------
Cash flows from investing activities:
Capital expenditures (8,834) (13,490)
Proceeds from property disposals 1,304 257
- ----------------------------------------------------------------------
Cash used for investing activities (7,530) (13,233)
- ----------------------------------------------------------------------
Cash flows from financing activities:
Net increase (decrease) in notes payable (68,739) 13,852
Net increase (decrease) in long-term debt 145 (9,500)
Dividends paid (7,263) (7,313)
Proceeds from issuance of common stock 7,748 14
Purchase of treasury stock (799) (16)
Other, net (15) (164)
- ----------------------------------------------------------------------
Cash used for financing activities (68,923) (3,127)
- ----------------------------------------------------------------------
Effect of exchange rate changes on cash
and cash equivalents (58) 163
- ---------------------------------------------------------------------
Net decrease in cash and cash equivalents (3,185) (2,193)
Cash and cash equivalents at beginning of period 8,753 7,508
- ----------------------------------------------------------------------
Cash and cash equivalents at end of period $ 5,568 $ 5,315
======================================================================
See accompanying notes to consolidated condensed financial statements.
INTERNATIONAL MULTIFOODS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements
(unaudited)
(1) In the Company's opinion, the accompanying unaudited consolidated
condensed financial statements contain all adjustments (consisting of
only normal recurring adjustments, except as noted elsewhere in the
notes to the consolidated condensed financial statements) necessary to
present fairly its financial position as of August 31, 1997 and the
results of its operations for the three and six months ended
August 31, 1997 and 1996 and cash flows for the six months ended
August 31, 1997 and 1996. These statements are condensed and, therefore,
do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements.
The statements should be read in conjunction with the consolidated
financial statements and footnotes included in the Company's Annual
Report on Form 10-K for the year ended February 28, 1997. The results of
operations for the three and six months ended August 31, 1997, are not
necessarily indicative of the results to be expected for the full year.
(2) Cost of sales - To more closely match costs with related revenues,
the Company classifies the inflation element inherent in interest rates
on Venezuelan local currency borrowings and the foreign exchange gains
and losses, which occur on such borrowings, as a component of cost of
sales. Cost of sales was not affected for the three months ended
August 31, 1997, but increased by $0.5 million for the six months ended
August 31, 1997. For the three and six months ended August 31, 1996, cost of
sales increased $1.2 million and $1.5 million, respectively.
(3) Interest, net consisted of the following (in thousands):
Three Months Ended Six Months Ended
------------------ ------------------
Aug. 31, Aug. 31, Aug. 31, Aug. 31,
1997 1996 1997 1996
- -----------------------------------------------------------------------
Interest expense $4,536 $4,548 $9,958 $8,937
Capitalized interest - (10) (9) (19)
Non-operating interest income (1,487) (98) (2,416) (188)
- -----------------------------------------------------------------------
Interest, net $3,049 $4,440 $7,533 $8,730
=======================================================================
Cash payments for interest, net of amounts capitalized for the six
months ended August 31, 1997 and 1996 were $10.0 million and
$8.6 million, respectively.
(4) Income taxes - Cash refunds for income taxes for the six months
ended August 31, 1997 were $0.4 million, while cash payments for
income taxes for the six months ended August 31, 1996 were $4.8
million.
(5) Supplemental balance sheet information (in thousands)
Aug. 31, Feb. 28,
1997 1997
- ----------------------------------------------------------------------
Trade accounts receivable, net:
Trade $165,572 $216,798
Allowance for doubtful accounts (6,552) (9,339)
- ----------------------------------------------------------------------
Total trade accounts receivable, net $159,020 $207,459
======================================================================
Inventories:
Raw materials, excluding grain $ 18,089 $ 15,776
Grain 65,963 86,500
Finished and in-process goods 177,455 174,274
Packages and supplies 8,115 7,398
- ----------------------------------------------------------------------
Total inventories $269,622 $283,948
======================================================================
Property, plant and equipment, net:
Land $ 13,363 $ 13,413
Buildings and improvements 93,618 93,099
Machinery and equipment 236,048 228,514
Transportation equipment 6,523 7,194
Improvements in progress 12,901 15,019
- ----------------------------------------------------------------------
362,453 357,239
Accumulated depreciation (143,214) (131,882)
- ----------------------------------------------------------------------
Total property, plant and equipment, net $219,239 $225,357
======================================================================
(6) Segment information (in millions)
Operating
Net Operating Unusual Earnings
Sales Costs Items (Loss)
- -----------------------------------------------------------------------
Three Months Ended August 31, 1997
Foodservice Distribution $ 424.9 $ (417.7) $ - $ 7.2
North America Foods 116.7 (111.4) - 5.3
Venezuela Foods 87.6 (89.0) - (1.4)
Corporate Expenses - (1.8) - (1.8)
- -----------------------------------------------------------------------
Total $ 629.2 $ (619.9) $ - $ 9.3
=======================================================================
Three Months Ended August 31, 1996
Foodservice Distribution $ 432.7 $ (432.3) $ - $ .4
North America Foods 114.4 (110.8) - 3.6
Venezuela Foods 87.4 (78.5) - 8.9
Corporate Expenses - (2.6) - (2.6)
- -----------------------------------------------------------------------
Total $ 634.5 $ (624.2) $ - $10.3
=======================================================================
Six Months Ended August 31, 1997
Foodservice Distribution $ 874.3 $ (863.0) $ - $11.3
North America Foods 232.2 (223.9) - 8.3
Venezuela Foods 189.9 (188.5) - 1.4
Corporate Expenses - (4.2) - (4.2)
- -----------------------------------------------------------------------
Total $1,296.4 $(1,279.6) $ - $16.8
=======================================================================
Six Months Ended August 31, 1996
Foodservice Distribution $ 876.0 $ (870.5) $ - $ 5.5
North America Foods 226.0 (220.3) - 5.7
Venezuela Foods 158.6 (147.6) - 11.0
Corporate Expenses - (5.3) (3.6) (8.9)
- -----------------------------------------------------------------------
Total $1,260.6 $(1,243.7) $(3.6) $13.3
=======================================================================
INTERNATIONAL MULTIFOODS CORPORATION AND SUBSIDIARIES
Management's Discussion and Analysis of Results of
Operations and Financial Condition
(Unaudited)
Results of Operations:
For the second quarter and six months ended August 31, 1997 compared
with the corresponding prior periods
Overview
Fiscal 1998 second-quarter net earnings were $4.5 million, or
25 cents per share, compared with $4 million, or 22 cents per
share a year ago. Net earnings improved on substantially higher
operating earnings in Foodservice Distribution and North America
Foods but was largely offset by an operating loss in the
Venezuela Foods business segment. Consolidated net sales
declined 1% to $629.2 million as a result of lower sales in
Foodservice Distribution.
Net earnings for the six months ended August 31, 1997 were
$6.5 million, or 36 cents per share, compared with $3.6 million,
or 20 cents per share a year ago. Last year's results were
adversely affected by after-tax unusual charges of $2.2 million,
or 12 cents per share, for costs resulting from the resignation
of the Company's former chief executive officer and from business
assessment studies. Consolidated net sales increased 3% to
$1.3 billion primarily because of higher sales in the Venezuela
Foods segment.
Segment Results
Foodservice Distribution second-quarter net sales declined 2% to
$424.9 million, compared with $432.7 million a year ago. Net
sales declined as a result of decisions to relinquish several
low-margin customer accounts in the limited-menu distribution
business and a planned reduction in sales to a major customer of
the Company's food exporting business that distributes food
products in Russia. Net sales in the Company's vending
distribution business increased on higher volumes to the
independent customer segment. Operating earnings were
$7.2 million in the current quarter, compared with $0.4 million
last year. Operating earnings increased as result of a
substantial improvement in vending distribution which had a
modest profit in the current quarter compared with a significant
operating loss a year ago. Vending distribution results improved
as a result of higher volumes, lower delivery and distribution
costs, and a reduction in bad debt expense. Second-quarter
vending distribution results also included a benefit from the
purchase of coffee prior to world-market price increases.
Operating earnings also increased in limited-menu distribution on
lower ingredient and operating costs.
Foodservice Distribution net sales for the six-month period
declined slightly to $874.3 million, compared with $876 million
last year. An increase in vending distribution net sales was
offset by lower sales in the food exporting and limited-menu
distribution businesses. Operating earnings increased 105% to
$11.3 million, compared with $5.5 million last year. Operating
earnings increased on essentially the same factors as noted above
for the second quarter.
North America Foods second-quarter net sales increased 2% to
$116.7 million, compared with $114.4 million last year. Sales
were up on higher volumes in Canadian commercial flour and U.S.
and Canadian bakery mix products. This increase was partially
offset by lower prices in Canadian commercial flour, resulting
from a reduction in worldwide wheat costs, and lower volumes in
Canadian frozen bakery products. Operating earnings increased
47% to $5.3 million, compared with $3.6 million last year.
Operating earnings increased on the higher volumes and on higher
margins, resulting from a more favorable customer mix in the
United States, improved manufacturing efficiencies and lower
ingredient costs.
North America Foods net sales for the six-month period increased
3% to $232.2 million, compared with $226 million last year.
Operating earnings increased 46% to $8.3 million, compared with
$5.7 million last year. Net sales and operating earnings were
affected by essentially the same factors as noted above for the
second quarter.
Venezuela Foods second-quarter net sales were $87.6 million,
compared with $87.4 million a year ago. The small increase in
net sales was the result of higher commercial flour volumes and
prices, which were largely offset by a substantial decline in
consumer corn flour volumes. Volumes declined because of
difficult economic conditions that resulted in a loss of consumer
purchasing power and a continuation of competitive pressures.
Volumes were also affected as a result of the Company being
selected to supply only a small amount of the corn flour to a
Venezuelan government subsidy program. The program is designed
to make available to low-income consumers certain basic food
products at below market prices and involves competitive bids by
suppliers to provide product for a specified period. The
business segment recognized an operating loss of $1.4 million,
compared with operating earnings of $8.9 million last year. In
addition to lower corn flour volumes and competitive pricing
pressures, the operating loss resulted from significantly higher
costs of locally grown grain and distribution. Last year's
second quarter results were positively impacted by the removal of
price and foreign exchange controls and other effects of the
transition to a free-market economy.
Venezuela Foods net sales for the six-month period increased 20%
to $189.9 million compared with $158.6 million last year. Net
sales in the prior year were adversely affected by a significant
devaluation in the free-market exchange rate while the Company
operated under price controls. The Venezuela government
eliminated price controls last year. Operating earnings declined
87% to $1.4 million, compared with $11 million last year.
Current year results were adversely affected by essentially the
same factors as noted above for the second quarter.
The Company expects that the difficult economic and competitive
environment will continue and will result in the Company's
third-quarter Venezuela Foods operating results being
significantly lower than the third quarter last year. The
Company further expects full-year Venezuela Foods operating
earnings to be significantly below last year.
Non-operating Expense and Income
Second-quarter net interest expense declined to $3 million from
$4.4 million a year ago as a result of interest income recognized
on U.S. federal income tax refunds, lower debt levels in North
America and lower interest rates in Canada. For the six-month
periods, net interest expense declined to $7.5 million from
$8.7 million a year ago as a result of increased interest income
and lower interest rates in Canada.
Income Taxes
For the six-month periods, the Company's effective tax rate was
30% in fiscal 1998 compared with 23% in fiscal 1997. Excluding
unusual items, the Company's fiscal 1997 effective tax rate was
30%. The Company's effective tax rate in both periods was
affected by a low effective tax rate in Venezuela. If the
earnings of the Company's Venezuelan operations fall below
currently projected levels, the Company's fiscal 1998 overall
effective tax rate will increase from its current level.
Financial Condition:
Capital Resources and Liquidity
The debt-to-total capitalization ratio decreased to 44% at
August 31, 1997 from 51% at February 28, 1997, primarily as a
result of a reduction in working capital.
Working capital decreased principally on lower inventory and
accounts receivable balances. Inventory was lower due to
improved management throughout the Company, as well as seasonal
factors in Venezuela. The reduction in accounts receivable was
primarily the result of significantly lower sales volume with a
major customer of the Company's food exporting business that
distributes food products in Russia and substantial collections
against a significant fiscal year-end accounts receivable balance
with this customer.
The Company had accounts receivable from the major customer of
the food exporting business of approximately $5 million, a
substantial portion of which is past due. In addition, the
customer has had difficulty in meeting purchase commitments with
the Company as result of business disruptions the customer has
experienced at the ports of destination. As a result, the Company
owns approximately $25 million of inventory that is held for sale
to the customer. In August 1997, the Company and the customer
entered into an exit agreement whereby the Company will deliver
the remaining inventory to the customer upon payment of 75% of
the full purchase price. The remaining 25% will be payable under
notes receivable, which provide for full payment plus interest to
the Company by November 1999. The Company believes that these
notes are fully collectible. The Company was also notified on
September 29, 1997 that a vessel chartered by the customer
carrying approximately $6 million in Company-owned inventory had
been arrested in the port of St. Petersburg, Russia. The Company
believes the seizure is unwarranted but is unable to determine
the extent to which any loss may result from this action or the
extent to which losses, if any, would be covered by insurance.
If the customer is unable to meet its commitments or should the
Company be unable to recover its seized inventory, there could be
a material adverse effect on the Company's results of operations
and financial condition.
On September 23, 1997, the Company announced that it intends to
exit its food exporting business by the end of the fiscal year.
This business was principally involved in the international
trading of food products. Management is currently evaluating a
number of options regarding the disposition of this business. In
fiscal 1997, operating earnings of the food exporting business
were approximately $7.7 million. For the six months ended
August 31, 1997, operating earnings of this business were
approximately $2.7 million. Except for the risk of material loss
associated with a major customer, as discussed above, the Company
does not expect the disposition of the business to result in a
material loss.
In June 1997, the Company announced that it intends to sell its
Canadian frozen bakery business. In fiscal 1997, the business
had net sales of $37 million, had an operating loss and
recognized an $11.4 million charge for asset impairment. The
Company is having discussions with a number of potential buyers
and anticipates the sale to be completed by fiscal year-end. The
Company is currently unable to determine whether the sale will
result in any additional net loss. The proceeds from the sale
will be used to reduce debt.
In July 1997, the Company announced that it will combine its
vending distribution and limited-menu distribution businesses
into a single distribution business to more quickly capitalize on
growth opportunities and achieve cost savings. The Company is
unable to estimate one-time charges, if any, associated with the
combination as specific actions have not yet been determined.
The combination is expected to result in significant long-term
benefits, net of any one-time charges.
PART II
OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
(a) The 1997 Annual Meeting of Stockholders of International
Multifoods Corporation (the "Company") was held on June 20, 1997(the
"Annual Meeting"). Holders of the Company's common stock, par value
$.10 per share, of record on May 1, 1997 were entitled to one vote per
share.
(c) At the Annual Meeting, Gary E. Costley, Nicholas L. Reding
and Jack D. Rehm were elected directors for a term of three years. The
number of votes cast for the election of each director and the number of
votes withheld are as follows:
FOR WITHHELD
Gary E. Costley 15,717,684 375,380
Nicholas L. Reding 15,688,587 404,477
Jack D. Rehm 15,708,539 384,525
The other directors whose term of office as a director continued after
the meeting are James G. Fifield, Robert M. Price, Lois D. Rice,
Richard K. Smucker and Dolph W. von Arx. In addition, effective
September 19, 1997, the Board of Directors of the Company elected
Claire L. Arnold a director of the Company.
With respect to the proposal to approve the Company's 1997
Stock-Based Incentive Plan, there were 15,070,155 votes cast for the
proposal, 831,571 votes cast against the proposal and 191,338
abstentions. There were no broker nonvotes with respect to such matter.
With respect to the proposal to approve the appointment of
KPMG Peat Marwick LLP as independent auditors of the Company for the
fiscal year ending February 28, 1998, there were 15,997,686 votes cast
for the proposal, 42,742 votes cast against the proposal and 52,636
abstentions. There were no broker nonvotes with respect to such matter.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
11. Computation of Earnings Per Common Share.
12. Computation of Ratio of Earnings to Fixed
Charges.
27. Financial Data Schedule.
(b) Reports on Form 8-K
During the quarter ended August 31, 1997, the Company
filed a report on Form 8-K dated June 5, 1997 relating to the
realignment of the Company's North America Foods segment and the
proposed sale of its Canada Frozen bakery unit.
SIGNATURE
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.
INTERNATIONAL MULTIFOODS CORPORATION
Date: October 3, 1997 By /s/ William L. Trubeck
William L. Trubeck
Senior Vice President - Finance and
Chief Financial Officer
(Principal Financial Officer
and Duly Authorized Officer)
EXHIBIT INDEX
11. Computation of Earnings Per Common Share.
12. Computation of Ratio of Earnings to Fixed Charges.
27. Financial Data Schedule.
Exhibit 11
INTERNATIONAL MULTIFOODS CORPORATION AND SUBSIDIARIES
Computation of Earnings per Common Share
(unaudited)
(in thousands, except per share amounts)
THREE MONTHS ENDED SIX MONTHS ENDED
------------------ ------------------
Aug. 31, Aug. 31, Aug. 31, Aug. 31,
1997 1996 1997 1996
- -----------------------------------------------------------------------------
Average shares of
common stock outstanding 18,234 17,983 18,125 17,981
Common stock equivalents 268 2 290 17
- -----------------------------------------------------------------------------
Total common stock and equivalents
assuming full dilution 18,502 17,985 18,415 17,998
=============================================================================
Net earnings
applicable to common stock $4,539 $3,995 $6,539 $3,562
=============================================================================
Earnings per
share of common stock:
Primary $ .25 $ .22 $ .36 $ .20
Fully diluted $ .25 $ .22 $ .36 $ .20
=============================================================================
Primary earnings per share has been computed by dividing
net earnings by the weighted average number of shares of
common stock outstanding during the period. Common stock
options and other common stock equivalents have not
entered into the primary earnings per share computations
since their effect is not significant.
Fully diluted earnings per share has been computed
assuming issuance of all shares for stock options deemed
to be common stock equivalents, using the treasury stock
method.
Exhibit 12
INTERNATIONAL MULTIFOODS CORPORATION AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(unaudited)
(in thousands)
THREE MONTHS ENDED SIX MONTHS ENDED
------------------ ------------------
Aug. 31, Aug. 31, Aug. 31, Aug. 31,
1997 1996 1997 1996
- ---------------------------------------------------------------------------
Earnings before income taxes $ 6,484 $ 5,707 $ 9,341 $ 4,625
Plus: Fixed charges (1) 7,042 6,801 14,808 13,481
Less: Capitalized interest - (10) (9) (19)
- ---------------------------------------------------------------------------
Earnings available to cover
fixed charges $13,526 $12,498 $24,140 $18,087
===========================================================================
Ratio of earnings to fixed charges 1.92 1.84 1.63 1.34
===========================================================================
(1) Fixed charges consisted of the following:
THREE MONTHS ENDED SIX MONTHS ENDED
------------------ ------------------
Aug. 31, Aug. 31, Aug. 31, Aug. 31,
1997 1996 1997 1996
- ---------------------------------------------------------------------------
Interest expense, gross $ 4,536 $ 4,548 $ 9,958 $ 8,937
Rentals (Interest factor) 2,506 2,253 4,850 4,544
- ---------------------------------------------------------------------------
Total fixed charges $ 7,042 $ 6,801 $14,808 $13,481
===========================================================================
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED CONDENSED BALANCE SHEET STATEMENTS OF EARNINGS AND CASH FLOWS
AND ACCOMPANYING NOTES AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS AND NOTES.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> FEB-28-1998
<PERIOD-END> AUG-31-1997
<CASH> 5,568
<SECURITIES> 0
<RECEIVABLES> 165,572
<ALLOWANCES> 6,552
<INVENTORY> 269,622
<CURRENT-ASSETS> 498,830
<PP&E> 362,453
<DEPRECIATION> 143,214
<TOTAL-ASSETS> 842,982
<CURRENT-LIABILITIES> 316,697
<BONDS> 178,769
0
0
<COMMON> 2,184
<OTHER-SE> 293,064
<TOTAL-LIABILITY-AND-EQUITY> 842,982
<SALES> 1,296,399
<TOTAL-REVENUES> 1,296,399
<CGS> 1,114,410
<TOTAL-COSTS> 1,114,410
<OTHER-EXPENSES> 80,758
<LOSS-PROVISION> 183
<INTEREST-EXPENSE> 9,949
<INCOME-PRETAX> 9,341
<INCOME-TAX> 2,802
<INCOME-CONTINUING> 6,539
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6,539
<EPS-PRIMARY> .36
<EPS-DILUTED> 0
</TABLE>
