UNITED STATES
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 July 26, 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 1-6071
RYMER FOODS INC.
Incorporated in the State of Delaware
IRS Employer Identification No. 36-1343930
4600 South Packers Avenue
Suite 400
Chicago, Illinois 60609
773/927-7777
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
APPLICABLE ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE
PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Section 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.
Yes X No
Registrant had 10,754,093 shares of common stock outstanding as of
September 3,1997.
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PART I - FINANCIAL INFORMATION
(Unaudited)
ITEM 1. Financial Statements
RYMER FOODS INC. AND SUBSIDIARIES
Consolidated Balance Sheets
<S> <C> <C>
July 26, October 26,
1997 1996
(in thousands)
ASSETS
Current Assets:
Receivables, net $ 1,627 $ 2,729
Inventories 4,596 3,272
Other 272 1,170
Total Current Assets 6,495 7,171
Property, Plant and Equipment:
Leasehold improvements 1,796 1,785
Machinery and equipment 7,171 6,735
8,967 8,520
Less accum. depreciation and amortization 7,277 6,899
1,690 1,621
Other:
Assets held for sale or lease 1,150 1,150
Other 450 621
$ 9,785 $ 10,563
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities:
Current portion of borrowings $ 25,176 $ 21,754
Accounts payable 339 558
Accrued interest 1,583 1,421
Accrued liabilities 1,523 1,640
Total Current Liabilities 28,621 25,373
Long-term debt 70 70
Deferred Employee Benefits 691 736
$ 29,382 $ 26,179
Commitments and Contingencies
Stockholders' Deficit:
Common stock, $1 par - 20,000,000 shares
authorized; 10,754,093 shares outstanding
after deducting treasury shares of
225,024 in 1997 and 1996 10,754 10,754
Additional paid-in capital 44,363 44,363
Accumulated deficit (74,714) (70,733)
Total Stockholders' Deficit (19,597) (15,616)
$ 9,785 $ 10,563
See accompanying notes.
</TABLE>
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<TABLE>
RYMER FOODS INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
<S> <C> <C> <C> <C>
Thirteen Weeks Ended Thirty-Nine Weeks Ended
July 26, July 27, July 26, July 27,
1997 1996 1997 1996
(Restated) (Restated)
(in thousands except per share data)
Net sales $ 8,295 $10,301 $ 26,011 $ 32,969
Cost of sales 7,849 9,310 23,807 32,227
Gross profit 446 991 2,204 742
Selling, general and
administrative expenses 1,047 1,300 3,247 3,813
Restructuring costs 672 - 672 -
Operating loss (1,273) (309) (1,715) (3,071)
Interest expense 695 1,016 2,284 3,077
Other income - (4) (18) (10)
Loss from continuing operations (1,968) (1,321) (3,981) (6,138)
Income from discontinued operations - 35 - 188
Net loss $(1,968) $(1,286) $ (3,981) $ (5,950)
Per common share data:
Primary:
Loss from continuing operations $ (.18) $ (.12) $ (.37) $ (.57)
Net loss $ (.18) $ (.12) $ (.37) $ (.55)
Fully diluted:
Loss from continuing operations $ (.18) $ (.12) $ (.37) $ (.57)
Net loss $ (.18) $ (.12) $ (.37) $ (.55)
See accompanying notes.
</TABLE>
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<TABLE>
RYMER FOODS INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(unaudited)
<S> <C> <C>
Thirty-Nine Weeks Ended
July 26, 1997 July 27, 1996
(Restated)
(in thousands)
CASH FLOWS FROM OPERATIONS
Loss from continuing operations $ (3,981) $ (6,138)
Non-cash adjustments to loss:
Depreciation and amortization 498 930
Amortization of other assets 58 106
Provision for bad debts 90 166
Payment-in-kind interest on Senior Notes 523 3,411
Net decrease to accounts receivable 1,012 1,886
Net (increase) decrease to inventories (1,324) 8,268
Net (increase) decrease to other current and long-term assets (52) 268
Net increase (decrease) to accounts payable and accrued expenses 1,629 (2,079)
Net cash flows from operating activities of
continuing operations (1,547) 6,818
Net cash flows from operating activities of
discontinued operations (184) 3,881
Net cash flows from operating activities (1,731) 10,699
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (456) (434)
Repayment on Note from the sale of Rymer Seafood 950 -
Other (20) (33)
Net cash flows from investing activities 474 (467)
CASH FLOWS FROM FINANCING ACTIVITIES
Change in cash overdraft (226) 12
Repayments under line-of-credit facility 23,244 31,527
Borrowings under line-of-credit facility (21,761) (37,297)
Principal payments on debt - (598)
Net cash flows from financing activities of
continuing operations 1,257 (6,356)
Net cash flows from financing activities of
discontinued operations - (3,876)
Net cash flows from financing activities 1,257 (10,232)
Net change in cash and cash equivalents - -
Cash and cash equivalents at beginning of year - -
Cash and cash equivalents at end of third quarter $ - $ -
Supplemental cash flow information:
Interest paid $ 79 $ 420
Income taxes paid, net of refunds $ 10 $ 15
See accompanying notes.
</TABLE>
<PAGE>
RYMER FOODS INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying unaudited consolidated financial statements have
been prepared in accordance with the instructions to Form 10-Q and
therefore do not include all information and footnotes necessary
for a fair presentation of financial position, results of
operations, and cash flows in conformity with generally accepted
accounting principles. The year-end balance sheet data was derived
from audited financial statements, but does not include all
disclosures required by generally accepted accounting principles.
The Company operates on a fiscal year which ends on the last
Saturday in October. References in the following notes to years
and quarters are references to fiscal years and fiscal quarters.
For further information, refer to the Consolidated Financial
Statements and footnotes thereto included in the Company's Annual
Report on Form 10-K for the fiscal year ended October 26, 1996.
The accompanying consolidated financial statements reflect the
operations of the Company's Rymer Seafood subsidiary as a
discontinued operation for accounting purposes.
In management's opinion, the consolidated financial statements
include all normal recurring adjustments which the Company
considers necessary for a fair presentation of the results for the
period. Operating results for the fiscal period presented are not
necessarily indicative of the results that may be expected for the
entire fiscal year.
2. GOING CONCERN
The accompanying consolidated financial statements for Rymer Foods
Inc. and subsidiaries (the "Company") have been prepared assuming
the Company will continue as a going concern.
In the first three quarters of 1997, the Company reported a
decrease in net sales from continuing operations as compared to the
first three quarters of 1996 of 21%. In the fiscal year 1996, the
Company reported a net loss from continuing operations of $7.1
million, the fourth loss from continuing operations before
extraordinary items in the last five years. For the thirty-nine
weeks ended July 26, 1997, the Company had a loss from continuing
operations of approximately $4.0 million. At July 26, 1997, the
Company had a stockholders' deficit of $19.6 million.
These conditions raise substantial doubt about the Company's
ability to continue operating as a going concern. The 1997
consolidated financial statements do not include any adjustments
that might result from the outcome of these uncertainties.
<PAGE>
3. INVENTORIES
Inventories are stated principally at the lower of first-in, first-
out cost or market. The composition of inventories at July 26,
1997 and October 26, 1996 was (in thousands):
July 26, 1997 October 26,
Raw material $ 2,974 $ 1,619
Finished goods 1,622 1,653
Total $ 4,596 $ 3,272
4. BORROWINGS
Long-term debt consists of the following (in thousands):
July 26, Oct 26,
1997 1996
Banks, with interest of 1 1/2%
over prime in 1997 and 1996 $ 1,693 $ 210
Senior Notes due December 15, 2000,
with interest at 11% in 1997
and at 18% in 1996 23,483 21,544
Other 70 70
25,246 21,824
Less amounts classified as current 25,176 21,754
$ 70 $ 70
The prime rate applicable to the Company's outstanding bank note
payable was 8.25% at July 26, 1997 and October 26, 1996.
On August 29, 1997, LaSalle National Bank (LaSalle) extended the
current LaSalle credit agreement from its original termination date
of August 31, 1997 to April 30, 1998. This extension was based on
the fact that Rymer Foods Inc. obtained a confirmation order of its
Chapter 11 bankruptcy allowing it to proceed with its senior note
restructuring. The LaSalle credit agreement provides the Company
with a credit facility of up to $4.0 million. The line of credit
available under this agreement was $2.6 million at July 26, 1997
and October 26, 1996, of which $0.9 million and $2.4 million,
respectively, was unused.
The LaSalle credit agreement contains certain restrictive covenants
which, among other things, limit the amount of indebtedness that
can be incurred by the Company and require the maintenance of
certain financial ratios. During the quarter ended July 26, 1997,
the Company was in default under certain covenants. LaSalle has
waived those defaults as of July 26, 1997.
Substantially all of the Company's property, plant and equipment
and certain current assets are pledged as collateral under the
LaSalle credit agreement.
<PAGE>
The Senior Notes were issued pursuant to the Indenture between the
Company and Continental Stock Transfer & Trust Company, as trustee
(the Indenture). The Senior Notes bear interest at 11% payable
semi-annually in arrears on June 15 and December 15. Through
December 15, 1996, the Company was able to issue additional Senior
Notes in payment of interest to the extent that the Company lacked
sufficient available cash (as defined in the Indenture) to pay the
interest in cash. For interest paid by the issuance of additional
Senior Notes from June 15, 1993 through December 15, 1996, the
interest rate was increased to 18% per annum.
The following table summarizes activity of the Company's Senior
Notes (in thousands):
Senior Notes originally issued in connection
with the 1993 Restructuring $19,977
Interest payment-in-kind on June 15, 1993 1,456
Mandatory redemptions:
June 1994 (1,050)
December 1994 (2,250)
Interest payment-in-kind on December 15, 1995 1,632
Interest payment-in-kind on June 15, 1996 1,779
Interest payment-in-kind on December 15, 1996 1,939
Senior Note principal outstanding at July 26, 1997 $23,483
On August 21, 1997, Rymer Foods Inc.'s prepackaged Chapter 11 plan
of reorganization was confirmed by the Bankruptcy Court for the
Northern District of Illinois. Under the Prepackaged Plan, Rymer
Foods Inc. will implement a 25 into 1 reverse stock split and issue
up to 4,300,000 shares of new common stock. All 11% senior notes
will be eliminated in exchange for new common stock. Rymer Foods
Inc. expects to complete the restructuring and issue the new common
stock by the end of September.
Pursuant to Statement of Position (SOP) 90-7, "Financial Reporting
by Entities in Reorganization Under the Bankruptcy Code", the
Company will adopt "fresh start" reporting as of the effective date
of the Prepackaged Plan. As a result of adopting fresh start
reporting upon emerging from Chapter 11 status, the "new" Company
will have no beginning retained earnings or deficit. In future
reporting periods, the Company's financial statements will be
presented on a different basis than for prior reporting periods
and, therefore, will not be comparable with those financial
statements prepared before the Plan becomes effective.
RYMER FOODS INC. AND SUBSIDIARIES
<PAGE>
Cautionary Statement
The statements in this Form 10-Q, included in this Management's
Discussion and Analysis, that are forward looking are based upon current
expectations and actual results may differ materially. Therefore, the
inclusion of such forward looking information should not be regarded as
a representation by the Company that the objectives or plans of the
Company will be achieved. Such statements include, but are not limited
to, the Company's expectations regarding the operations and financial
condition of the Company. Forward looking statements contained in this
Form 10-Q included in this Management's Discussion and Analysis, involve
numerous risks and uncertainties that could cause actual results to
differ materially including, but not limited to, the effect of changing
economic conditions, business conditions and growth in the meat
industry, the Company's ability to maintain its lending arrangements, or
if necessary, access external sources of capital, implementing current
restructuring plans and accurately forecasting capital expenditures. In
addition, the Company's future results of operations and financial
condition may be adversely impacted by various factors including,
primarily, the level of the Company's sales. Assumptions relating to
budgeting, marketing, product development and other management decisions
are subjective in many respects and thus susceptible to interpretations
and periodic revisions based on actual experience and business
developments, the impact of which may cause the Company to alter its
marketing, capital expenditure or other budgets, which may in turn
affect the Company's financial position and results of operations.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
On March 4, 1997, the Board of Directors of the Company approved a
Restructuring Plan that involved the exchange of existing long term debt
for equity or, in the alternative, a prepackaged bankruptcy. On July 8,
1997, Rymer Foods Inc. announced that its senior note exchange offer did
not receive the necessary noteholder and shareholder acceptances to be
implemented. However, the Company received the requisite approval of
its senior noteholders and shareholders to proceed with its alternative
restructuring strategy, the prepackaged Chapter 11 bankruptcy plan.
Accordingly, on July 8, Rymer Foods Inc. filed a voluntary Chapter 11
case in the United States Bankruptcy Court for the Northern District of
Illinois.
On August 21, 1997, the prepackaged Chapter 11 plan of reorganization
was confirmed. Under the Prepackaged Plan, Rymer Foods Inc. will
implement a 25 into 1 reverse stock split and issue up to 4,300,000
shares of new common stock. All 11% senior notes will be eliminated in
exchange for new common stock. The Company expects to complete the
restructuring and issue the new common stock by the end of September.
Pursuant to SOP 90-7, the Company will adopt "fresh start" reporting as
of the effective date of the prepackaged Chapter 11 Bankruptcy Plan. As
a result of adopting fresh start reporting upon emerging from Chapter 11
status, the "new" Company will have no beginning retained earnings or
deficit. In future reporting periods, the Company's financial
statements will be presented on a different basis than for prior
reporting periods and, therefore, will not be comparable with those
financial statements prepared before the Plan becomes effective.
<PAGE>
General
The Company's consolidated results from operations are generated by its
meat processing operation.
First Three Quarters of 1997 versus First Three Quarters of 1996
Consolidated sales for the first three quarters of 1997 of $26.0 million
decreased from the first three quarters of 1996 by $7.0 million or 21%.
Sales decreased primarily due to lower sales volume, changes in the
sales mix and customer base and customer concerns regarding the
prepackaged Chapter 11 filing by Rymer Foods Inc.
As compared to 1996, consolidated cost of sales decreased by $8.4
million or 26.1% while total gross profit was $2,204,000. As a
percentage of sales, the gross profit increased to 8.5% as compared to
2.3% in 1996. Gross profit increased mainly due to improvements in
operational efficiency. The Company's hourly work force has declined by
approximately 17.3% at the end of the first three quarters of 1997
versus 1996.
Selling, general and administrative expenses decreased by $566,000 or
14.9% in 1997 as compared to 1996. Administrative expenses decreased by
$481,000. Reductions in salaries and related expenses due to headcount
reductions at the meat processing operation and of corporate personnel
contributed to the majority of the decrease. Selling expenses decreased
by $85,000 primarily due to reduced salary expenses due to decreases in
personnel.
During the third quarter of 1997, the Company recorded restructuring
costs of $672,000 for fees and expenses relating to its Senior Note
restructuring plan.
The Company's common stock was suspended from trading on the New York
Stock Exchange on February 19, 1997. Rymer stock currently trades in
the over-the-counter Bulletin Board market under the symbol RYMRQ.
Interest Expense
Interest expense decreased by $793,000 or 26% as compared to 1996. This
decrease is due to lower outstanding loan balances under the LaSalle
credit agreement and a reduction of the interest rate on the
Senior Notes from 18% to 11%. Additionally, the Company stopped
accruing interest on the Senior Notes as of July 8, 1997, the date on
which the prepackaged Chapter 11 bankruptcy plan was filed.
Other Income
The Company earned other income in 1997 and 1996 of $18,000 and $10,000,
respectively, consisting primarily of interest income.
Income Taxes
In both 1997 and 1996, no provision for income taxes was recorded due to
the loss from continuing operations.
<PAGE>
Third Quarter of 1997 versus Third Quarter of 1996
Consolidated sales for the third quarter of 1997 of $8.3 million
decreased from the third quarter of 1996 by $2.0 million or 20%. Sales
decreased primarily due to reduced sales volume caused by increased
competition and customer concerns regarding the prepackaged Chapter 11
filing by Rymer Foods Inc. The Company experienced a decline in unit
sales of approximately 17% and a decrease of 2.5% in the average selling
price.
As compared to 1996, consolidated cost of sales decreased by $1.5
million or 15.7% while total gross profit was $446,000. As a percentage
of sales, the gross profit decreased by 4.2%. Gross profit decreased
compared to 1996 primarily due to a decrease in sales. The hourly work
force has declined by 17% at the end of the third quarter of 1997 versus
1996.
Selling, general and administrative expenses decreased by $.3 million or
19.5% as compared to 1996 primarily due
to lower administrative expenses.
During the third quarter of 1997, the Company recorded restructuring
costs of $672,000 for fees and expenses relating to its Senior Note
restructuring plan.
Interest Expense
Interest expense decreased by $321,000 or 31.6% as compared to 1996.
This decrease is due to lower outstanding loan balances under the
LaSalle credit agreement and a reduction of the interest rate on its
Senior Notes from 18% to 11%. The Company, as permitted by the terms of
its 11% Senior Notes due December 15, 2000, elected to make its December
15, 1996 interest payment on its Senior Notes by issuing additional
Senior Notes in a principal amount equal to the interest payment due.
According to the Senior Note Indenture, the Company accrued Senior Note
interest at the 11% rate after December 15, 1996 through July 8, 1997.
Other Income
The Company earned other income of $4,000 in the third quarter of 1996
which was comprised primarily of interest income.
Income Taxes
In both 1997 and 1996, no provision for income taxes was recorded due to
the loss from continuing operations.
Liquidity and Capital Resources
The Company makes sales primarily on a seven to thirty day balance due
basis. Purchases from suppliers have payment terms generally ranging
from wire transfer at time of shipment to fourteen days.
On August 29, 1997, LaSalle extended the current LaSalle credit
agreement from its original termination date of August 31, 1997 to April
30, 1998. This extension was based on the fact that Rymer Foods Inc.
obtained a confirmation of its Chapter 11 bankruptcy order allowing it
to proceed with its senior note restructuring. The LaSalle credit
agreement provides the Company with a credit facility of up to $4.0
million. During the quarter ended July 26, 1997, the Company was in
default under certain financial covenants. LaSalle has waived those
defaults as of July 26, 1997.
<PAGE>
As permitted by the terms of its 11% Senior Notes, the December 15, 1996
interest payment was made by issuing additional Senior Notes in a
principal amount equal to the interest payment due. The Company was
required to make an interest payment on June 15, 1997 of approximately
$1.3 million in respect to the Senior Notes. The Senior Notes and
related accrued interest will be exchanged for new Common Stock when the
Chapter 11 bankruptcy plan becomes effective.
As discussed in Note 2 to the Consolidated Financial Statements, there
is substantial doubt about the Company's ability to continue as a going
concern.
The Company had total lines of credit available of $2.6 million at July
26, 1997 and October 26, 1996, of which $.9 million and $2.4 million,
respectively, was unused.
The Company anticipates spending approximately $200,000 for capital
expenditures during the fourth quarter of 1997. The expenditures are
primarily for planned improvements at the Meat operation. There are no
specific commitments outstanding related to these planned expenditures.
Such capital expenditures will be financed with cash from operations
and/or bank borrowings.
Seasonality
The quarterly results of the Company are affected by seasonal factors.
Sales are usually lower in the fall and winter.
Impact of Inflation
Raw materials are subject to fluctuations in price. However, the
Company does not expect such fluctuations to materially impact its
competitive position.
Impact of Recent Accounting Pronouncements
In February 1997, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards No. 128, Earnings Per Share
(FAS 128). FAS 128 is designed to improve the EPS information provided
in financial statements by simplifying the existing computational
guidelines, revising the disclosure requirements, and increasing the
comparability of EPS data on an international basis. FAS 128 is
effective for financial statements issued for periods ending after
December 15, 1997. The Company has not yet determined the impact that
adoption of FAS 128 will have on the financial statements.
In February 1997, the FASB issued Statement of Financial Accounting
Standards No. 129, Disclosure of Information about Capital Structure
(FAS 129). FAS 129 establishes standards for disclosing information
about an entity's capital structure. This Statement is effective for
financial statements for periods ending after December 15, 1997. The
Company does not anticipate any impact from this pronouncement as it is
currently complying with the disclosure requirements.
<PAGE>
In June 1997, the FASB issued FAS 130, Reporting Comprehensive Income.
This statement, effective for fiscal years beginning after December 15,
1997, would require the company to report components of comprehensive
income in a financial statement that is displayed with the same
prominence as other financial statements. Comprehensive income is
defined by Concepts Statement No. 6, Elements of Financial Statements as
the change in equity of a business enterprise during a period from
transactions and other events and circumstances from nonowner sources.
It includes all changes in equity during a period except those resulting
from investments by owners and distributions to owners. The Company has
not yet determined its comprehensive income.
Also in June 1997, the FASB issued FAS 131, Disclosure about Segments of
an Enterprise and Related Information. This statement, effective for
financial statements for periods beginning after December 15, 1997,
requires that a public business enterprise reports financial and
descriptive information about its reportable operating segments.
Generally, financial information is required to be reported on the basis
that is used internally for evaluating segment performance and deciding
how to allocate resources to segments. The Company is evaluating this
pronouncement and will make any segment disclosures as necessary.
RYMER FOODS INC. AND SUBSIDIARIES
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits filed:
11 Computations of earnings per share are included in
the Notes to Condensed Consolidated Financial
Statements included in Item 1 of this Form 10-Q.
Exhibits incorporated by reference:
13.1 Annual Report on Form 10-K of Rymer Foods Inc.
for the fiscal year ended October 26, 1996
(incorporated by reference).
Amended Annual Report on Form 10-K/A of Rymer Foods Inc.
for the fiscal year ended October 26, 1996, amended
February 28, 1997 (incorporated by reference).
21.1 Subsidiaries of the Company. (Incorporated by
reference to Exhibit 22 to the Annual Report of
Form 10-K of Rymer Foods Inc. for the fiscal year
ended October 26, 1996.)
(b) Reports on Form 8-K:
The Company filed a curr ent report on Form 8-K dated
July 21, 1997 and August 29, 1997 reporting on its
financial restructuring plan.
<PAGE>
RYMER FOODS INC.
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.
RYMER FOODS INC.
(Registrant)
By /s/ Edward M. Hebert
Edward M. Hebert
Sr. V.P., C.F.O. and Treasurer
Date: September 9, 1997
EXHIBIT 11
COMPUTATION OF EARNINGS (LOSS) PER SHARE
ASSUMING FULL DILUTION
Thirteen Weeks Ended Thirty-Nine Weeks Ended
July 26, July 27, July 26, July 27,
1997 1996 1997 1996
(Restated) (Restated)
(In thousands, except per share amounts)
AVERAGE SHARES OUTSTANDING
1 Average shares outstanding 10,754 10,754 10,754 10,754
2 Net additional shares outstanding
assuming exercise of stock options - - - -
3 Average number of common shares
outstanding 10,754 10,754 10,754 10,754
EARNINGS (LOSSES)
4 Loss from continuing
operations $(1,968) $(1,321) $(3,981) $(6,138)
5 Net loss $(1,968) $(1,286) $(3,981) $(5,950)
PER SHARE AMOUNTS
Loss from continuing
operations (line 4 / line 3) $ (.18) $ (.12) $ (.37) $ (.57)
Net loss
(line 5 / line 3) $ (.18) $ (.12) $ (.37) $ (.55)
NOTE 1 - In all years, earnings per share was calculated using the
treasury stock method.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> OCT-25-1997
<PERIOD-END> JUL-26-1997
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 1,744
<ALLOWANCES> 117
<INVENTORY> 4,596
<CURRENT-ASSETS> 6,495
<PP&E> 8,967
<DEPRECIATION> 7,277
<TOTAL-ASSETS> 9,785
<CURRENT-LIABILITIES> 28,621
<BONDS> 0
0
0
<COMMON> 10,754
<OTHER-SE> 44,363
<TOTAL-LIABILITY-AND-EQUITY> 9,785
<SALES> 8,295
<TOTAL-REVENUES> 8,295
<CGS> 7,849
<TOTAL-COSTS> 1,719
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 695
<INCOME-PRETAX> (1,968)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,968)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,968)
<EPS-PRIMARY> (.18)
<EPS-DILUTED> (.18)
</TABLE>
