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 April 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
May 21, 1997.
<PAGE>
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PART I - FINANCIAL INFORMATION
(Unaudited)
ITEM 1. Financial Statements
RYMER FOODS INC. AND SUBSIDIARIES
Consolidated Balance Sheets
April 26, October 26,
1997 1996
(in thousands)
<S> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents $ 199 $ -
Receivables, net 1,672 2,729
Inventories 3,706 3,272
Other 384 1,170
Total Current Assets 5,961 7,171
Property, Plant and Equipment:
Leasehold improvements 1,790 1,785
Machinery and equipment 7,043 6,735
8,833 8,520
Less accumulated depreciation & amortization 7,154 6,899
1,679 1,621
Other:
Assets held for sale or lease 1,150 1,150
Other 480 621
$ 9,270 $ 10,563
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities:
Current portion of borrowings,
including amounts to related parties $ 23,483 $ 21,754
Accounts payable 327 558
Accrued interest 942 1,421
Accrued liabilities 1,371 1,640
Total Current Liabilities 26,123 25,373
Long-term debt 70 70
Deferred Employee Benefits 707 736
$ 26,900 $ 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 (72,747) (70,733)
Total Stockholders' Deficit (17,630) (15,616)
$ 9,270 $ 10,563
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
RYMER FOODS INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
Thirteen Weeks Ended Twenty-Six Weeks
April 26, April 27, April 26, April 27,
1997 1996 1997 1996
(Restated) (Restated)
<S> <C> <C> <C> <C>
(in thousands except per share data)
Net sales $ 9,438 $10,689 $ 17,716 $ 22,668
Cost of sales 8,383 10,918 15,958 22,917
Gross profit (loss) 1,055 (229) 1,758 (249)
Selling, general and
administrative expenses 1,143 1,189 2,200 2,513
Operating loss (88) (1,418) (442) (2,762)
Interest expense 710 1,051 1,589 2,061
Other income (8) - (18) (6)
Loss from continuing
operations (790) (2,469) (2,013) (4,817)
Income from discontinued
operations - 121 - 153
Net loss $ (790) $(2,348) $(2,013) $(4,664)
Per common share data:
Primary:
Loss from continuing
operations $ (.07) $ (.23) $ (.19) $ (.45)
Net loss $ (.07) $ (.22) $ (.19) $ (.43)
Fully diluted:
Loss from continuing
operations $ (.07) $ (.23) $ (.19) $ (.45)
Net loss $ (.07) $ (.22) $ (.19) $ (.43)
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
RYMER FOODS INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(unaudited)
Twenty-Six Weeks Ended
April 26, 1997 April 27, 1996
(Restated)
<S> <C> <C>
(in thousands)
CASH FLOWS FROM OPERATIONS
Loss from continuing operations $ (2,013) $ (4,817)
Non-cash adjustments to loss:
Depreciation and amortization 344 521
Amortization of other assets 58 100
Provision for bad debts 60 166
Payment-in-kind interest on Senior Notes 523 1,730
Net dec to accounts receivable 997 1,824
Net (inc) dec to inventories (434) 7,155
Net (inc) dec to other current and
long-term assets (164) 423
Net inc (dec) to accounts payable and
accrued expenses 936 (1,754)
Net cash flows from operating activities of
continuing operations 307 5,348
Net cash flows from operating activities of
discontinued operations (166) 3,278
Net cash flows from operating activities 141 8,626
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (322) (405)
Repayment on Note from the sale of
Rymer Seafood 950 -
Other (12) (34)
Net cash flows from investing activities 616 (439)
CASH FLOWS FROM FINANCING ACTIVITIES
Change in cash overdraft (348) (80)
Repaymts under line-of-credit facility (13,168) (60,182)
Borrowings under line-of-credit facility 12,958 52,156
Principal payments on debt - (81)
Net cash flows from financing activities (558) (8,187)
Net change in cash and cash equivalents 199 -
Cash and cash equivalents at beginning of year - -
Cash and cash equivalents at end of second qtr $ 199 $ -
Supplemental cash flow information:
Interest paid $ 44 $ 316
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 Rymer Foods Inc.'s (the Company's or Rymer'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 have been
prepared assuming the Company will continue as a going concern.
In the first half of 1997, the Company reported a decrease in
net sales from continuing operations as compared to the first
half of 1996 of 22%. 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
item in the last five years. At April 26, 1997, the Company had
a stockholders' deficit of $17.6 million.
Additionally, based on current forecasts, the Company does not
expect to have sufficient available cash in fiscal 1997 to make
the June 15, 1997 11% Senior Notes interest payment. This will
result in an event of default at which time the Senior Notes
will become due and payable. The Company does not expect to
have the funds available to repay the Senior Notes.
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 p rincipally at the lower of first-in,
first-out cost or market. The composition of inventories at
April 26, 1997 and October 26, 1996 was (in thousands):
April 26, 1997 October 26, 1996
Raw material $ 2,526 $ 1,619
Finished goods 1,180 1,653
Total $ 3,706 $ 3,272
4. BORROWINGS
Long-term debt consists of the following (in thousands):
April 26, October 26,
1997 1996
Banks, with interest of 1 1/2%
over prime in 1996 and 1997$ - $ 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
23,553 21,824
Less amounts classified as current 23,483 21,754
$ 70 $ 70
The prime rate applicable to the Company's outstanding bank note
payable was 8.25% at October 26, 1996.
LaSalle has extended the current LaSalle Credit Agreement to
July 31, 1997 from the original termination date of April 7,
1997. In addition, LaSalle has reduced the credit facility from
a maximum of $5 million to $4 million. The line of credit is
based on borrowing base availability calculations. The line of
credit available under this agreement was $2.1 million at April
26, 1997 and $2.6 million, of which $2.4 million was unused, at
October 26, 1996.
The Company's bank agreements contain certain restrictive
covenants which, among other things, limit the amount of
indebtedness incurred by the Company and its subsidiaries and
require the maintenance of certain financial ratios by the
Company and its subsidiaries. During the quarter ended April
26, 1997, the Company was in violation of certain covenants.
LaSalle has agreed to waive those covenants as of April 26,
1997. The Company also expects to be in violation of certain of
its covenants with LaSalle during the third quarter. LaSalle
may continue to waive such covenants on a month-to-month basis.
However, there can be no assurance that LaSalle will continue
to issue such waivers.
<PAGE>
Substantially all of the Company's property, plant and equipment
and certain current assets are pledged as collateral under the
bank agreement.
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 lacks 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 April 26, 1997 $23,483
Based on current forecasts, the Company does not expect to have
sufficient available cash in fiscal 1997 to make the June 15,
1997 11% Senior Notes interest payment. This will result in an
event of default at which time the Senior Notes will become due
and payable. Therefore, the Senior Notes have been classified
as a current liability on the April 26, 1997 and October 26,
1996 balance sheets. The Company plans to restructure its 11%
Senior Notes in an effort to improve its liquidity. There can
be no assurances that such a restructuring will occur.
In accordance with Statement of Financial Accounting Standards
No. 107, "Disclosures About Fair Value of Financial
Instruments", the Company has estimated the fair value of its
bank debt using interest rates that are similar to those that
are currently available for issuance of debt with similar credit
risk, terms and maturities. The fair value of the Company's
Senior Notes is estimated based on recent transactions. The
estimated fair value of the Company's Senior Notes at April 26,
1997 was 40% of the face amount of the Senior Notes or
approximately $9.4 million.
<PAGE>
5. INCOME TAXES
The Company provides for income taxes in accordance with the
provisions of Statement of Financial Accounting Standards No.
109, "Accounting for Income Taxes" (SFAS 109). The Company's
deferred tax asset is related primarily to its operating loss
carryforward for tax reporting purposes which approximated $38.6
million at April 26, 1997 and October 26, 1996. The Company
recorded a valuation allowance amounting to the entire deferred
tax asset balance because the Company's financial condition, its
lack of a history of consistent earnings, possible limitations
on the use of carryforwards, and the expiration dates of certain
of the net operating loss carryforwards give rise to uncertainty
as to whether the deferred tax asset is realizable.
RYMER FOODS INC. AND SUBSIDIARIES
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. Certain of these factors are described in the description
of the Company's business, operations and financial condition
contained in this Form 10-Q. 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.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
On March 4, 1997, the Board of Directors of Rymer Foods Inc.
approved a plan that involves the exchange of existing long term
debt for equity. The Company filed an S-4 registration statement
for review and comment with the Securities and Exchange Commission
(SEC) on March 18, 1997. The plan has been submitted to
shareholders and noteholders for their approval at the annual
meeting. The debt for equity recapitalization calls for approval
by holders of the majority of the Company's outstanding common
stock for the restructuring and issuance of new shares of common
stock. The new stock will be used to retire at least 95% of the
Company's Senior Notes, which is its principal long term debt.
After giving effect to a 25 to 1 reverse stock split and the Senior
Notes Restructuring, it is estimated that there will be
approximately 4.1 million common shares outstanding. Approval of
the plan will likely result in a dilution of the current
shareholders' equity by 90%. If approved, holders of the Company's
11% Senior Notes due in 2000 will be issued a yet-to-be determined
number of shares of the Company's new common stock for each $1,000
of principal and accrued interest to date. The annual meeting,
originally scheduled for April 16, 1997, has been rescheduled to
July 8, 1997. If the restructuring is successful, the exchange of
these notes will eliminate at least 95% of all long term debt from
the Company's capital structure, a move the Company believes is
necessary to ensure the Company's long term viability.
General
The Company's consolidated results from operations are generated by
its meat processing operation.
First Half of 1997 versus First Half of 1996
Consolidated sales for the first half of 1997 of $17.8 million
decreased from the first half of 1996 by $5.0 million or 22%.
Sales decreased primarily due to lower sales volume and changes in
the sales mix and customer base. The decrease was mainly in the
low margin market segments which the Company has de-emphasized in
1997.
As compared to 1996, consolidated cost of sales decreased by $7.0
million or 30.4% while total gross profit was $1,758,000. As a
percentage of sales, the gross margin increased to 9.9% as compared
to (1.1%) in 1996. Gross profit increased mainly due to
operational efficiency improvements. The Company's hourly work
force has declined by approximately 11.7% at the end of the first
half of 1997 versus 1996.
Selling, general and administrative expenses decreased by $313,000
or 12.5% in 1997 as compared to 1996. Administrative expenses
decreased by $215,000. 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 $98,000 primarily due to reduced
salary expenses due to decreases in personnel.
<PAGE>
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 RYMR.
Interest Expense
Interest expense decreased by $472,000 or 23% as compared to 1996.
This decrease is due to repayments under the LaSalle line of
credit such that by April 26, 1997, the Company had no loan balance
outstanding with LaSalle and reduction of the interest rate on the
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 is accruing Senior Note interest at the 11% rate after
December 15, 1996.
Other Income
The Company earned other income in 1997 and 1996 of $18,000 and
$6,000, 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.
Second Quarter of 1997 versus Second Quarter of 1996
Consolidated sales for the second quarter of 1997 of $9.4 million
decreased from the second quarter of 1996 by $1.3 million or 12%.
Sales decreased primarily due to reduced sales volume caused by
increased competition.
The Company experienced a decline in unit sales of approximately
23% primarily due to increased competition. The Company
experienced an increase of 14.2% in the average selling price.
As compared to 1996, consolidated cost of sales decreased by $2.5
million or 23.2% while total gross profit was $1,055,000. As a
percentage of sales, the gross margin increased to 11.2% as
compared to (2.1%) in 1996.
Gross profit increased compared to 1996 primarily due to a decrease
in cost of goods sold. Factory expenses declined by 12% due to
decreases in maintenance and depreciation expense. Warehouse
expenses decreased due to a reduction in employees. The hourly
work force has declined by 13% at the end of the second quarter of
1997 versus 1996.
Selling, general and administrative expenses decreased by $.5
million or 3.9% as compared to 1996. Administrative expenses
decreased by $1.0 million. Selling expenses increased by $0.5
million.
<PAGE>
Interest Expense
Interest expense decreased by $341,000 or 32.4% as compared to
1996. This decrease is due to repayments under the LaSalle line of
credit such that by April 26, 1997, the Company had no loan balance
outstanding with LaSalle and reduction of theinterest rate on the
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
interest payment due. According to the Senior Note Indenture, the
Company is accruing Senior Note interest at the 11% rate after
December 15, 1996.
Other Income
The Company earned other income of $8,000 in the second quarter of
1997 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.
LaSalle has extended the current LaSalle Credit Agreement to July
31, 1997 from the original termination date of April 7, 1997. In
addition, LaSalle has reduced the credit facility from $5 million
to $4 million based on borrowing base availability calculations.
During the quarter ended April 26, 1997, the Company was in
violation of certain covenants. LaSalle has agreed to waive those
covenants as of April 26, 1997, and may continue to waive such
covenants on a month-to-month basis. However, there can be no
assurance that LaSalle will continue to issue such waivers.
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 is required to make an interest payment on June 15, 1997 of
approximately $1.3 million in respect to the Senior Notes. The
Company does not expect to have sufficient available cash to make
this required interest payment. Failure to make the June 1997
payment within 30 days of the due date constitutes an event of
default under the terms of the indenture at which time the 11%
Senior Notes will become due and payable. Accordingly, the Senior
Notes have been classified as a current liability on the Company's
consolidated balance sheet. An event of default under the
indenture is an event of default under the Company's bank agreement
with LaSalle also.
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.
<PAGE>
The Company had total lines of credit available of $2.1 million at
April 26, 1997 and $2.6 million at October 26, 1996, of which $2.1
million and $2.4 million, respectively, was unused.
The Company anticipates spending approximately $800,000 for capital
expenditures in 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>
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:
None
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, Senior Vice President,
Chief
Financial Officer and Treasurer
Date: June 10, 1997
EXHIBIT 11
COMPUTATION OF EARNINGS (LOSS) PER SHARE
ASSUMING ASSUMING
PRIMARY DILUTION FULL DILUTION
Thirteen Weeks Ended Thirteen Weeks Ended
April 26, April 27, April 26, April 27,
1997 1996 1997 1996
(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 $ (790) $ (2,469) $(2,013) $ (4,817)
5 Net loss $ (790) $ (2,348) $(2,013) $ (4,664)
PER SHARE AMOUNTS
Loss from continuing
operations (line 4 / line 3) $ (.07) $ (.23) $ (.19) $ (.45)
(a)
Net loss
(line 5 / line 3) $ (.07) $ (.22) $ (.19) $ (.43)
NOTE 1 - In all years, earnings per share was calculated using the
treasury stock method.
(a) Amount is anti-dilutive; accordingly, primary earnings per
share is disclosed for reporting purposes in accordance with
generally accepted accounting principles.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-25-1997
<PERIOD-END> APR-26-1997
<CASH> 199
<SECURITIES> 0
<RECEIVABLES> 1,775
<ALLOWANCES> 103
<INVENTORY> 3,706
<CURRENT-ASSETS> 5,961
<PP&E> 8,833
<DEPRECIATION> 7,154
<TOTAL-ASSETS> 9,270
<CURRENT-LIABILITIES> 26,123
<BONDS> 0
0
0
<COMMON> 10,754
<OTHER-SE> 44,363
<TOTAL-LIABILITY-AND-EQUITY> 9,270
<SALES> 17,716
<TOTAL-REVENUES> 17,716
<CGS> 15,958
<TOTAL-COSTS> 2,200
<OTHER-EXPENSES> (18)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,589
<INCOME-PRETAX> (2,013)
<INCOME-TAX> 0
<INCOME-CONTINUING> (2,013)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,013)
<EPS-PRIMARY> (.19)
<EPS-DILUTED> (.19)
</TABLE>
