SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
(X) Quarterly report for the quarterly 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 1-9601
K-V PHARMACEUTICAL COMPANY
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 43-0618919
- --------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
2503 SOUTH HANLEY ROAD, ST. LOUIS, MISSOURI 63144
- --------------------------------------------------------------------------------
(Address or principal executive offices)
(Zip Code)
(314) 645-6600
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
- --------------------------------------------------------------------------------
(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 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
---- ----
Title of Class of Number of Shares
Common Stock Outstanding as of this Report Date
----------------- ----------------------------------
Class A Common Stock, par
value $.01 per share 12,191,300
-------------------
Class B Common Stock, par
value $.01 per share 6,571,970
--------------------
<PAGE>
PART I
FINANCIAL INFORMATION
<PAGE>
KV PHARMACEUTICAL COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months and Nine Months Ended December 31, 1999 and 1998
(Unaudited)
(Dollars in 000's, except per share information)
For the Three For the Nine
Months Ended Months Ended
-------------------- --------------------
12/31/99 12/31/98 12/31/99 12/31/98
-------- -------- -------- --------
Revenues $38,792 $27,022 $107,596 $79,097
------- ------- -------- -------
Costs and Expenses:
Manufacturing costs 16,234 13,506 48,459 43,306
Research and development 2,137 1,628 6,040 4,934
Selling and administrative 10,433 5,731 28,880 15,918
Amortization of intangible
assets 611 42 1,680 124
-------- ------- -------- -------
Total Costs and Expenses 29,415 20,907 85,059 64,282
------ ------- ------- -------
Operating income 9,377 6,115 22,537 14,815
------- ------- ------- -------
Other income (expense):
Interest expense (485) (106) (1,569) (332)
Interest and other income 320 445 545 1,077
------- ------- --------- -------
Total other income (expense) (165) 339 (1,024) 745
------ ------- --------- -------
Income before income taxes 9,212 6,454 21,513 15,560
Provision for income taxes 3,498 2,434 8,172 5,907
------- ------- -------- -------
Net Income $5,714 $4,020 $13,341 $ 9,653
====== ====== ======= =======
Net income per Common Share
Basic $0.30 $0.21 $0.70 $0.51
===== ===== ===== =====
Diluted $0.28 $0.20 $0.66 $0.48
===== ===== ===== =====
See accompanying Notes to Financial Statements
3
<PAGE>
<TABLE>
<CAPTION>
KV PHARMACEUTICAL COMPANY AND SUBSIDIARIES
COMPREHENSIVE INCOME
For the Three Months and Nine Months Ended December 31, 1999 and 1998
(Unaudited)
(Dollars in 000's)
For the Three For the Nine
Months Ended Months Ended
----------------------- ---------------------
12/31/99 12/31/98 12/31/99 12/31/98
--------- -------- -------- --------
<S> <C> <C> <C> <C>
Net income $5,714 $4,020 $13,341 $9,653
------ ------ ------- ------
Other comprehensive income, net of tax:
Unrealized losses on securities:
Unrealized holding losses arising during period (5) - (38) -
Reclassification adjustment for losses on
the sale of securities included in net income 22 - 63 -
-------- --------- -------- ---------
Other comprehensive income 17 - 25 -
-------- --------- -------- ---------
Comprehensive Income $5,731 $4,020 $13,366 $9,653
====== ====== ======= ======
</TABLE>
4
<PAGE>
KV PHARMACEUTICAL COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, 1999 and March 31, 1999
(Dollars in 000's, except per share information)
(Unaudited)
12/31/99 03/31/99
----------- --------
ASSETS
Current Assets:
Cash and equivalents $ 3,337 $ 2,617
Marketable securities available-for-sale - 7,523
Receivables, less allowance for
doubtful accounts of $1,083 and $631
at December 31 and March 31,
respectively 26,111 18,988
Receivable, arbitration award - 13,253
Inventories 27,651 23,653
Deferred income taxes 3,379 3,379
Prepaid and other current assets 172 168
---------- ----------
Total Current Assets 60,650 69,581
Property and equipment, less
accumulated depreciation 28,528 18,967
Intangibles and other assets,
net of amortization 47,261 39,442
---------- ---------
TOTAL ASSETS $136,439 $127,990
======== ========
LIABILITIES
Current Liabilities:
Accounts payable $ 8,609 $ 8,667
Accrued liabilities 12,863 17,090
Current maturities of long-term debt 1,652 712
---------- ----------
Total Current Liabilities 23,124 26,469
Long-term debt 23,875 31,490
Deferred income taxes 379 379
Other long-term liabilities 2,296 2,104
---------- ----------
TOTAL LIABILITIES 49,674 60,442
-------- --------
SHAREHOLDERS' EQUITY
7% Cumulative Convertible Preferred
Stock, $.01 par value; $25.00 stated and
liquidation value; 840,000 shares authorized;
issued and outstanding - 240,000 and 241,000
shares at December 31 and March 31,
respectively (convertible into Class A shares
at a ratio of 3.75 to one) 2 2
Class A and Class B Common Stock, $.01 par value:
150,000,000 and 75,000,000 shares authorized,
respectively; Class A-issued 12,226,919 and
11,923,319 at December 31 and March 31 122 120
Class B-issued 6,607,589 and 6,393,867
at December 31 and March 31 (convertible
into Class A shares on a one-for-one basis) 66 64
Additional paid-in capital 40,693 34,531
Retained earnings 45,937 32,911
Accumulated comprehensive loss - (25)
Less: Treasury Stock, 35,619 shares each of
Class A and Class B Common Stock, at cost (55) (55)
--------- ----------
TOTAL SHAREHOLDERS' EQUITY 86,765 67,548
-------- ----------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $136,439 $127,990
======== ========
See accompanying Notes to Financial Statements
5
<PAGE>
KV PHARMACEUTICAL COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
For the Nine Months Ended December 31, 1999 and 1998
(Unaudited)
(Dollars in 000's)
1999 1998
OPERATING ACTIVITIES
Net Income $13,341 $9,653
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 3,223 1,317
Deferred compensation 192 389
Changes in operating assets and liabilities:
(Increase) decrease in receivables (7,123) 2,515
Decrease in receivable arbitration award 13,253 -
(Increase) in inventories (3,998) (6,474)
(Increase) decrease in prepaids and other
assets (1,038) 200
(Decrease) in accounts payable and
accrued liabilities (4,285) (75)
-------- ---------
NET CASH PROVIDED BY OPERATING ACTIVITIES 13,565 7,525
-------- --------
INVESTING ACTIVITIES
Purchase of property and equipment, net (11,104) (3,917)
Sale of marketable securities 7,548 -
Product acquisition (3,033) -
-------- ---------
NET CASH (USED IN) INVESTING ACTIVITIES (6,589) (3,917)
-------- --------
FINANCING ACTIVITIES
Principal payments on long-term debt (9,607) (500)
Issuance of long-term debt 2,000 -
Dividends paid on Preferred Stock (315) (316)
Exercise of Common Stock options 1,666 444
-------- --------
NET CASH (USED IN) FINANCING ACTIVITIES (6,256) (372)
------ --------
INCREASE IN CASH AND CASH EQUIVALENTS 720 3,236
CASH AND CASH EQUIVALENTS AT:
BEGINNING OF YEAR 2,617 18,158
-------- --------
END OF PERIOD $ 3,337 $21,394
======= =======
Non-cash investing and financing activities:
Portion of product acquisition
acquired through issuance of:
Short-term debt 933 -
Common stock 4,500 -
See accompanying Notes to Financial Statements
6
<PAGE>
NOTES TO SUMMARIZED FINANCIAL INFORMATION
NOTE A - BASIS OF PRESENTATION
The interim financial statements presented here have been prepared in
conformity with the accounting principles and practices and methods of applying
the same (including consolidating practices) reflected in the Annual Report of
the Company on Form 10-K for the year ended March 31, 1999 filed with the
Commission, except that detailed footnotes and schedules are not included.
Reference is hereby made to the footnotes and schedules contained in the Annual
Report. All significant intercompany balances and transactions have been
eliminated and, in the opinion of management, all adjustments, which are of a
normal recurring nature only, necessary to present a fair statement of the
results of the Company and its subsidiaries have been made.
NOTE B - INVENTORIES
Inventories consist of ($ in 000's):
December 31, 1999 March 31, 1999
----------------- --------------
Finished products $11,366 $11,411
Work-in-process 3,795 2,282
Raw materials and supplies 12,490 9,960
-------- ---------
$27,651 $23,653
======= =======
7
<PAGE>
<TABLE>
<CAPTION>
NOTE C - EARNINGS PER SHARE
The following table sets forth the computation of basic and diluted
earnings per share:
For the Three Months Ended For the Nine Months Ended
--------------------------- -----------------------------
Numerator ($ in 000's): 12/31/99 12/31/98 12/31/99 12/31/98
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net income $ 5,714 $ 4,020 $13,341 $ 9,653
Preferred Stock dividends (105) (105) (315) (316)
------- -------- --------- ---------
Numerator for basic earnings per
share--income available to common
stockholders 5,609 3,915 13,026 9,337
Effect of dilutive securities:
Preferred Stock dividends 105 105 315 316
------- -------- -------- -------
Numerator for diluted earnings per
share-income available to
common stockholders after
assumed conversions $5,714 $4,020 $13,341 $ 9,653
====== ====== ======= =======
Denominator:
Denominator for basic earnings per
share--weighted-average shares 18,762 18,220 18,609 18,187
------ ------ ------ ------
Effect of dilutive securities:
Employee stock options 737 922 637 900
Convertible Preferred Stock 900 904 900 904
-------- -------- -------- ---------
Dilutive potential Common Shares 1,637 1,826 1,537 1,804
------- ------- -------- --------
Denominator for diluted earnings
per share--adjusted weighted-average
shares and assumed conversions 20,399 20,046 20,146 19,991
====== ====== ====== ======
Basic Earnings per Share (1): $0.30 $0.21 $0.70 $0.51
===== ===== ===== =====
Diluted Earnings per Share (1) (2): $0.28 $0.20 $0.66 $0.48
===== ===== ===== =====
<FN>
(1) The two-class method for Class A and Class B Common Stock is not
presented because the earnings per share are equivalent to the if
converted method since dividends were not declared or paid and each class
of common stock has equal ownership of the Company.
(2) Employee stock options to purchase 123,250 shares at December 31, 1999
and 500 shares at December 31, 1998 of Class A and Class B Common Stock
are not included in the computation of diluted earnings per share because
their exercise price was greater than the average market price during the
quarter and as such are considered anti-dilutive.
</FN>
</TABLE>
8
<PAGE>
NOTE D - SEGMENT FINANCIAL INFORMATION
The reportable segments of the Company are branded products, specialty
generics, specialty materials and manufacturing and contract services. Segment
operating results are measured based on income before taxes. Each segment's
operating results are determined based on its direct expenses. Corporate
expenses for shared services and research and development are managed as
separate cost centers. The majority of the revenues in manufacturing and
contract services are intersegment revenues between that segment and the branded
products and specialty generics segments.
<TABLE>
<CAPTION>
Mfg. & Corporate
Branded Specialty Specialty Contract Expenses and All
Products Generics Material Services Eliminations Other Consolidated
-------- -------- -------- -------- ------------ ----- ------------
For the Three Months Ended
December 31, 1999 ($ in 000's)
- -------------------------------
<S> <C> <C> <C> <C> <C> <C>
Revenues $7,602 $25,458 $ 4,652 $12,306 $(11,287) $ 61 $38,792
Depreciation and amortization 17 37 35 504 601 10 1,204
Income before income taxes 1,884 12,518 1,055 581 (6,718) (108) 9,212
Capital expenditures 6 66 90 4,969 - - 5,131
For the Three Months Ended
December 31, 1998 ($ in 000's)
- -------------------------------
Revenues - 22,861 3,090 9,165 (8,192) 98 27,022
Depreciation and amortization - 19 19 365 33 9 445
Income before income taxes (434) 10,789 377 96 (4,434) 60 6,454
Capital expenditures - 22 66 1,932 - - 2,020
For the Nine Months Ended
December 31, 1999 ($ in 000's)
- ------------------------------
Revenues 14,812 77,133 13,014 34,049 (31,651) 239 107,596
Depreciation and amortization 43 100 103 1,295 1,656 26 3,223
Income before income taxes 2,310 35,300 2,819 926 (20,067) 225 21,513
Total assets 7,305 25,507 - 45,793 49,482 8,352 136,439
Capital expenditures 40 268 129 10,667 - - 11,104
For the Nine Months Ended
December 31, 1998 ($ in 000's)
- -------------------------------
Revenues - 65,808 10,116 22,035 (19,156) 294 79,097
Depreciation and amortization - 54 60 1,078 102 23 1,317
Income before income taxes (434) 28,178 1,520 (605) (13,324) 225 15,560
Total assets - 15,624 6,557 49,230 5,106 1,440 77,957
Capital expenditures - 37 90 3,790 - - 3,917
</TABLE>
9
<PAGE>
NOTE E - LONG-TERM DEBT
In December 1999, the Company amended its "Revolving Note" agreement
with LaSalle National Bank to extend the "Revolving Credit Maturity Date" from
October 15, 2000 to October 15, 2002. All other terms and conditions of the
agreement remained the same.
NOTE F - SUBSEQUENT EVENT
Subsequent to December 31, 1999, the Company received an arbitration
award related to a breach of contract. The terms of the contract provided for
private binding arbitration between the parties which resulted in the Company
receiving an award of approximately $3.7 million, net of applicable taxes and
related expenses/reimbursements. The award will be reflected in the financial
statements for the fourth quarter and fiscal year ending March 31, 2000.
Any forward-looking statements set forth in this Report are necessarily
subject to significant uncertainties and risks. When used in this Report, the
words "believes," "anticipates," "intends," "expects," and similar expressions
are intended to identify forward-looking statements. Actual results could be
materially different as a result of various possibilities. Readers are cautioned
not to place undue reliance on forward-looking statements, which speak only as
of the date hereof. The Company undertakes no obligation to publicly release the
results of any revisions to these forward-looking statements which may be made
to reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.
Item 2: Management's Discussion and Analysis of Results of Operations, and
Liquidity and Capital Resources
------------------------------------------------------------------
(a) Results of Operations ($ in 000's)
Revenues. Consolidated net revenues for the third quarter of fiscal
2000 ended December 31, 1999 increased $11.8 million, or 44%, and year-to-date
consolidated net revenues increased $28.5 million, or 36%, over the same periods
last year. The increase in revenues after elimination of inter-segment revenues,
was due to higher sales in the Company's three marketing segments ($ in 000's):
Quarter Year-to-Date
--------------------- ------------------------
Increase Increase
vs. Prior vs. Prior
Revenues Year Revenues Year
-------- --------- -------- ---------
Branded Products $ 7,602 $ 7,602 $ 14,812 $14,812
Specialty Generics 25,458 2,597 77,133 11,325
Specialty Materials 4,477 1,487 12,725 2,898
All other 1,255 84 2,926 (536)
-------- ---------- ---------- ----------
Total $38,792 $11,770 $107,596 $28,499
======= ======= ======== =======
Branded product sales through the Company's Ther-Rx subsidiary are all
incremental to the prior year given the start-up of the business late in the
fourth quarter of last fiscal year. The branded business has been built by
acquiring products with established brand name recognition and existing
distribution and through the introduction of internally developed products.
Acquired products include Micro-K(R) Extencaps, a potassium chloride supplement
that Ther-Rx began selling at the beginning of the fiscal year, and the
PreCare(R) prenatal caplet that was acquired in August. Ther-Rx also introduced
three internally developed products during the year under the PreCare(R) family
of womens' health care pharmaceuticals. These products include PreCare(R)
Chewable, a chewable prenatal vitamin; PremesisRx(TM), a product designed to
reduce pregnancy related nausea; and PreCare(R) Conceive(TM), a nutritional
preconception supplement specifically designed for use by both men and women
prior to conception. The Company plans to continue to pursue a product
development strategy focused on womens' health care and expects to launch
additional products in the coming months.
Specialty generic sales through the Company's ETHEX subsidiary
increased for the quarter and year-to-date due to new product introductions
($1.1 and $2.7 million, respectively), higher volume ($.9 and $5.1 million,
respectively) and price increases ($.6 and $3.5 million, respectively).
Specialty materials sales through the Company's Particle Dynamics
subsidiary increased for the quarter by $1.6 million, or 51% and year-to-date by
$2.9 million, or 29%, due primarily to higher volume on an expanded customer
base.
Costs and Expenses. Manufacturing costs as a percent of revenue
declined for the quarter and year-to-date due to the effects of favorable
pricing and product mix. The improvement in product mix reflects the increase in
the relative contribution of higher margin brand sales and the decrease in lower
margin generic sales. For the quarter, manufacturing costs declined to 41.8%
from 50.0% in the prior year and for the year-to-date to 45.0% from 54.8% last
year. The components of the change are shown in the following table:
% Revenues
----------------------------
Quarter Year-to-Date
------- ------------
FY 99 Manufacturing Costs 50.0% 54.8%
Change due to:
Product Volume and Mix (7.1) (7.7)
Pricing (3.1) (3.1)
Cost Changes 2.0 1.0
----- -----
FY 00 Manufacturing Costs 41.8% 45.0%
==== ====
Research and development expense increased $.5 million, or 31%, for the
quarter and $1.1 million, or 22%, for the year-to-date compared to the same
periods of the prior year. The increase in expense in both periods is due
primarily to an increase in the number of clinical testing programs in which the
Company is involved.
Selling and administrative expenses increased $4.7 million, or 82%, for
the quarter and $13 million, or 81%, for the year-to-date compared to the same
periods of the prior year. The increase in both periods is due primarily to the
Company's investment in establishing the sales force for its Ther-Rx branded
products marketing division. Selling expenses associated with this effort were
$4 million for the quarter and $9.2 million for the year-to-date. Selling and
marketing expenses in ETHEX increased $.3 million and $1.7 million for the
quarter and year-to-date, respectively.
Amortization expense increased $.6 million for the quarter and $1.6
million for the year-to-date due to the amortization of product rights acquired
in March 1999 and August 1999.
Interest expense, net of interest income, increased $.5 million in the
quarter and is up $1.8 million for the year-to-date on higher borrowings
incurred to finance product acquisitions.
Net Income. As a result of the factors described above, net income
improved $1.7 million, or 42%, to $5.7 million for the quarter ending December
31, 1999 compared to the same period last year. For the nine months ended
December 31, 1999, net income improved $3.7 million, or 38%, to $13.3 million
compared to the same period of the prior year.
(b) Liquidity and Capital Resources
-------------------------------
Cashflow. Cash provided by operating activities was $13.6 million for
the first nine months of fiscal 2000, an increase of $6.0 million, or 80%, over
the first nine months of fiscal 1999. The increase in operating cash flow
compared with last year was due to an increase in net income before depreciation
and amortization of $5.6 million and the receipt of a $13.3 million arbitration
award. These increases were partially offset by a $12.6 million increase in the
net use of working capital over the same period last year. The increase in the
Company's working capital requirement relates primarily to higher accounts
receivable, ($9.6 million) associated with sales growth and the effect of new
product introductions in Ther-Rx and ETHEX. In addition, the Company's accrued
income tax liability declined by $5.3 million from last year-end due to the
taxes paid in the first quarter of this year in connection with the arbitration
award recorded in fiscal 1999.
Investing activities for the first nine months of fiscal 2000 included
cash outlays for capital expenditures of $11.1 million and product acquisitions
of $3 million, partially offset by cash provided by the sale of $7.5 million of
marketable securities. Capital expenditures were primarily for production
equipment, laboratory improvements and the upgrade of the Company's business
software and network systems. The Company acquired the worldwide rights to
PreCare(R) in August for approximately $8.5 million, consisting of $3 million
cash, $4.5 million Class A Common Stock and a $1 million note. Marketable
securities were sold to pay down long-term debt and fund these expenditures.
Financing activities included reduction of long-term debt of $9.6
million and additional borrowings of $2 million to fund working capital
requirements and additional capital expenditures.
The Company believes that existing cash, together with cash generated
from operating activities and funds available under its credit facility, will be
adequate to fund operating activities for the presently foreseeable future,
including the payment of short-term and long-term obligations, capital
improvements, product development activities and the expansion of marketing
capabilities for the brand pharmaceutical business.
Balance Sheet and Ratios. The following table shows selected balance
sheet data and financial ratios as of December 31 and year-end March 31, 1999:
December 1999 March 1999
------------- ----------
($ in 000's)
Working capital $37,526 $43,112
Long-term debt 23,875 31,490
Shareholders' equity 86,765 67,548
Working capital ratio 2.6 2.6
Long-term debt to equity .3 .5
Working capital decreased $5.6 million during the first nine months of
fiscal 2000 compared with the balance at the end of fiscal 1999. Current assets
decreased $8.9 million, or 13%, while current liabilities decreased $3.3
million, or 13%. The decrease in current assets was due primarily to the
collection of the $13.3 million arbitration award, which was used to reduce
long-term debt. Current liabilities decreased due primarily to a $5.3 million
reduction in accrued income taxes resulting from the taxes paid on the
arbitration award in the first quarter.
The long-term debt to equity ratio improved during the first nine
months of fiscal 2000 due to the $7.6 million net reduction in long-term debt
and the increase in shareholders' equity attributable to the Company's net
income for the period.
Inflation. Although at reduced levels in recent years, inflation
continues to apply upward pressure on the cost of goods and services used by the
Company. However, the Company believes that the net effect of inflation on its
operations was minimal during the first nine months of fiscal 2000 and fiscal
1999. In addition, changes in the mix of products sold and the effect of
competition have made a comparison of changes in selling prices less meaningful
relative to changes in the overall rate of inflation during the first nine
months of fiscal 2000 and fiscal 1999.
Year 2000 Project. Like other companies, KV Pharmaceutical Company
could be adversely affected if the computer systems the Company, its suppliers
or customers use do not properly process and calculate date-related information
and data from the period surrounding and including January 1, 2000.
Additionally, this issue could impact non-computer systems and devices including
production equipment. While the Company's project to assess and correct Y2K
related issues has been completed, and the Company has not experienced any
significant Y2K related events, interactions with other companies' systems make
it difficult to conclude there will not be future effects. Consequently, at this
time, management cannot provide assurances that the Y2K issue will not have an
impact on the Company's operations.
<PAGE>
Item 3: Exhibits and Reports on Form 8-K.
---------------------------------
a) Exhibits - None.
b) The Company did not file any reports on Form 8-K during the quarter
ended December 31, 1999.
<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.
KV PHARMACEUTICAL COMPANY
Date: February 14, 2000 By: /s/ Marc S. Hermelin
--------------------------- --------------------------
Marc S. Hermelin
Vice Chairman of the Board
Date: February 14, 2000 By: /s/ Gerald R. Mitchell
---------------------------- --------------------------
Gerald R. Mitchell
Vice President - Finance
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-2000
<PERIOD-START> APR-01-1999
<PERIOD-END> DEC-31-1999
<CASH> 3,337
<SECURITIES> 0
<RECEIVABLES> 25,740
<ALLOWANCES> 371
<INVENTORY> 27,651
<CURRENT-ASSETS> 60,650
<PP&E> 28,528
<DEPRECIATION> 0
<TOTAL-ASSETS> 136,439
<CURRENT-LIABILITIES> 23,124
<BONDS> 23,875
0
2
<COMMON> 188
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 136,439
<SALES> 107,596
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 48,459
<OTHER-EXPENSES> 36,600
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,024
<INCOME-PRETAX> 21,513
<INCOME-TAX> 8,172
<INCOME-CONTINUING> 13,341
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 13,341
<EPS-BASIC> .70
<EPS-DILUTED> .66
</TABLE>
