<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Quarterly Report Under Section 13 or 15 (d) of
The Securities Exchange Act of 1934
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 14 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2000
[ ] TRANSITION REPORT PURSUANT OR SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Commission File No. 0-7770
MCCLAIN INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
Michigan 38-1867649
State of Incorporation IRS Employer I.D. No.
6200 Elmridge Road
Sterling Heights, Michigan 48310
(810) 264-3611
(Address of principal executive offices and telephone number)
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 .
--- ---
Indicate the number of shares outstanding of each of the issuer's
classes of common stock as of May 4, 2000.
Common Stock, No Par Value 4,586,084
- -----------------------------------------------------------------------------
Class Number of Shares
1 of 15
<PAGE> 2
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
McCLAIN INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
ASSETS MARCH 31 SEPTEMBER 30,
2000 1999
(UNAUDITED)
----------- ------------
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $2,575,673 $1,908,397
Accounts receivable, (Net) 16,920,847 20,140,166
Inventories 63,563,786 63,281,785
Net investment in sales-type leases, current portion 7,200,000 5,900,000
Prepaid expenses 582,011 237,129
------------ ------------
TOTAL CURRENT ASSETS 90,842,317 91,467,477
------------ ------------
PROPERTY, PLANT AND EQUIPMENT, NET 22,738,272 23,236,170
------------ ------------
NET INVESTMENT IN SALES-TYPE LEASES, NET OF
CURRENT PORTION 13,950,972 12,871,973
------------ ------------
OTHER ASSETS 2,493,747 2,348,369
------------ ------------
TOTAL OTHER ASSETS 130,025,308 129,923,989
============ ============
LIABILITIES AND STOCKHOLDERS' INVESTMENT
CURRENT LIABILITIES
Accounts payable $19,895,347 $21,775,139
Current portion of long-term debt 4,500,000 4,450,000
Accrued expenses 5,801,332 4,682,156
Federal and state income taxes 471,840 1,870,217
------------ ------------
TOTAL CURRENT LIABILITIES 30,668,519 32,777,512
Long-term debt, net of current portion 64,192,907 62,648,684
Product liability 1,089,079 1,406,828
Deferred income taxes 2,200,000 2,200,000
------------ ------------
TOTAL LIABILITIES 98,150,505 99,033,024
------------ ------------
STOCKHOLDERS' INVESTMENT 31,874,803 30,890,965
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' INVESTMENT $130,025,308 $129,923,989
============ ============
See notes to condensed consolidated financial statements
</TABLE>
2 of 15
<PAGE> 3
MCCLAIN INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
MARCH 31, MARCH 31,
------------------------- -------------------------
2000 1999 2000 1999
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net sales $38,334,080 $31,856,781 $67,926,698 $59,013,687
Cost of sales 31,809,115 26,080,107 55,814,549 48,394,916
----------- ----------- ----------- -----------
GROSS PROFIT 6,524,965 5,776,674 12,112,149 10,618,771
Selling, general and administrative
expenses 4,251,512 3,891,727 8,181,442 7,338,270
----------- ----------- ----------- -----------
INCOME FROM OPERATIONS 2,273,453 1,884,947 3,930,707 3,280,501
----------- ----------- ----------- -----------
OTHER INCOME (EXPENSE)
Interest expense (1,435,795) (771,449) (2,694,049) (1,634,525)
Interest income 526,588 395,792 994,921 759,731
Other, net (153,632) (56,635) (295,695) (102,266)
----------- ----------- ----------- -----------
OTHER EXPENSE - NET (1,062,839 (432,292 (1,994,823 (977,060)
----------- ----------- ----------- -----------
INCOME BEFORE INCOME TAXES 1,210,614 1,452,655 1,935,884 2,303,441
Income taxes 411,000 494,000 658,000 783,000
----------- ----------- ----------- -----------
NET INCOME $799,614 $958,655 $1,277,884 $1,520,441
=========== =========== =========== ===========
Net income per share:
Basic $0.17 $0.20 $0.28 $0.32
=========== ============ =========== ============
Assuming dilution $0.17 $0.20 $0.28 $0.32
=========== ============ =========== ============
</TABLE>
See notes to condensed consolidated financial statements
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<PAGE> 4
MCCLAIN INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED
<TABLE>
<CAPTION>
SIX MONTHS ENDED
MARCH 31,
---------------------------------
2000 1999
---------- ----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,277,884 $1,503,137
Adjustments to reconcile net income to
net cash (used) provided by operating activities
Depreciation and amortization 1,691,535 1,656,548
Common stock issued to directors for services 16,484 10,114
Net changes in operating assets and liabilities which
provided (used) cash:
Current assets excluding cash & cash equivalents 1,292,436 (8,038,942)
Other assets (1,491,697) (915,820)
Accounts payable (1,879,792) 2,400,263
Accrued expenses 1,119,176 492,725
Federal and state income taxes (1,398,377) (37,113)
---------- ----------
NET CASH (USED) PROVIDED BY OPERATING ACTIVITIES 627,649 (2,929,088)
---------- ----------
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of plant and equipment (926,217) (2,131,787)
Payments (made on) received from liabilities assumed upon the
Galion acquisition (317,749) 286,766
---------- ----------
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES (1,243,966) (1,845,021)
---------- ----------
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal increase of long term debt 1,594,223 4,722,872
Repurchase of common stock (310,630) (76,378)
---------- ----------
NET CASH (USED) PROVIDED BY FINANCING ACTIVITIES 1,283,593 4,646,494
---------- ----------
---------- ----------
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS 667,276 (127,615)
---------- ----------
Cash and cash equivalents, beginning of period 1,908,397 1,924,006
---------- ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD $2,575,673 $1,796,391
========== ==========
</TABLE>
See notes to condensed consolidated financial statements
4 of 15
<PAGE> 5
MCCLAIN INDUSTRIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
SIX MONTHS ENDED MARCH 31, 2000
1. Basis of Presentation
The accompanying unaudited Consolidated Financial Statements of McClain
Industries, Inc. and subsidiaries (the "Company") have been prepared in
accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Rule
10-01 of Regulation S-X. Accordingly, such Statements do not include
all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion
of management, all adjustments consisting of normal recurring items
considered necessary for a fair presentation have been included.
Operating results for the six-month period ended March 31, 2000 are not
necessarily indicative of the results that may be expected for the year
ending September 30, 2000. 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 year ended September 30,
1999.
2. Inventories
Inventories at March 31, 2000 and September 30, 1999 are summarized as
follows:
<TABLE>
<CAPTION>
(Unaudited)
March 31, 2000 September 30, 1999
------------ ------------
<S> <C> <C>
Materials and Supplies $ 21,960,385 $ 19,416,535
Work in Process 6,100,106 5,555,977
Finished Goods 12,606,888 11,120,913
Chassis 22,896,407 27,188,360
------------ ------------
$ 63,563,786 $ 63,281,785
============ ============
</TABLE>
3. Earnings per Common Share and Common Equivalent Share:
Earnings per share are computed using the weighted average number of
common shares outstanding during the periods, including a dual
presentation and reconciliation of "basic" and "diluted" per share
amounts. Diluted reflects the potential dilution of all common stock
equivalents for the periods ended March 31, 2000 and 1999 options to
purchase 134,684 and 259,464 shares, respectively, were excluded from
the computation of earnings per share because the options' exercise
prices were greater than the average market price of the common shares.
5 of 15
<PAGE> 6
MCCLAIN INDUSTRIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
SIX MONTHS ENDED MARCH 31, 2000
4. Depreciation
For the six months ended March 31, 2000 and 1999, depreciation charges
were $1,424,115 and $1,419,471, respectively. Accumulated depreciation
totaled $22,333,555 and $21,046,447 at March 31, 2000 and September 30,
1999, respectively.
5. Contingencies
Product Liability
As a manufacturer of industrial products, the Company is occasionally
subjected to various product liability claims. Such claims typically
involve personal injury or wrongful death associated with the use or
misuse of the Company's products. The Company is currently defending
certain legal proceedings involving allegations of product liability
relating to products manufactured and sold by the Company.
Historically, such claims have not resulted in material losses to the
Company in any one year, and the Company maintains product liability
insurance in amounts believed by management to be adequate.
McClain E-Z Pack, Inc., as successor to Galion Holding Company (GHC),
pursuant to an indemnification it provided to the seller in connection
with GHC's July 1992 acquisition of the Galion operations, is currently
defending a number of legal proceedings involving product liability
claims arising out of products manufactured and sold prior to the
acquisition. These claims are covered by insurance and many of these
cases have been settled. In addition, the acquisition agreement called
for the seller to share in the payment of certain costs related to the
defense of these cases. On December 29, 1998 the Company reached a
settlement agreement with the seller, the terms of which called for the
Company to release the seller from its obligations related to product
liability claims under the Galion acquisition agreement in exchange for
a cash payment of $1,050,000.
A reserve to provide for these product claims was established at the
acquisition date. Since many of the cases have been settled and
insurance coverage exists, management believes that the ongoing costs
to defend these claims will not exceed the amount accrued on the
accompanying consolidated balance sheet at March 31, 2000.
Nevertheless, it is not possible to predict the ultimate outcome of any
product liability claim, and any such claim not fully covered by
insurance, as well as adverse publicity from a product claim, could
have a material adverse effect on the Company.
6 of 15
<PAGE> 7
MCCLAIN INDUSTRIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
SIX MONTHS ENDED MARCH 31, 2000
Environmental Matters
The Company's operations are subject to extensive federal, state and
local regulation under environmental laws and regulations concerning,
among other things, emissions into the air, discharges into the waters
and the generation, handling, storage, transportation, treatment and
disposal of waste and other materials. Inherent in manufacturing
operations and in owning real estate is the risk of environmental
liabilities as a result of both current and past operations, which
cannot be predicted with certainty. The Company has incurred and will
continue to incur costs, on an ongoing basis, associated with
environmental regulatory compliance in its business.
Labor Union Matters
Certain of the Company's hourly employees are represented by various
labor unions pursuant to collective bargaining agreements which expire
between June 2000 and November 2002.
On February 23, 1995, the National Labor Relations Board (NLRB)
conducted an election in response to a petition filed by a local union
(Union) to represent the hourly employees at the Company's Macon,
Georgia plant. The ballots of certain employees were challenged as
ineligible. The Union filed charges asserting that the Company
committed various unfair labor practices, which affected the election
results, and that the challenged ballots should be counted. On October
17, 1996, the NLRB upheld the unfair labor practice charges and on
November 5, 1996, the NLRB determined that the results of the election
were in favor of the Union. The Company continues to vigorously defend
against the unfair labor practice allegations. The Company does not
believe a final decision upholding the Union certification or the
unfair labor practice charges would have a material adverse effect on
the Company. The Company believes that relations with the hourly
employees at McClain of Georgia are generally satisfactory. There have
been no work stoppages due to labor difficulties.
Other Legal Matters
The Company is also involved in routine litigation incidental to its
business. Management believes that the resolution of these matters will
not materially affect the consolidated financial statements.
7 of 15
<PAGE> 8
MCCLAIN INDUSTRIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
SIX MONTHS ENDED MARCH 31, 2000
6. Year 2000 Compliance
The Company did not experience any significant disruptions in its
operations that were related to the Year 2000 issue.
7. Segment Information
The Company operates in three principal operating segments 1)
Manufactured Equipment, 2) Truck Chassis Sales, and 3) Leasing
Operations. Management evaluates the performance of its operating
segments separately to individually monitor the different factors
affecting performance. The Company measures the performance of its
operating segments based on net revenue and operating income. Income
taxes are managed on a Company-wide basis. Segment performance is also
evaluated based on profit or loss before income taxes.
8 of 15
<PAGE> 9
MCCLAIN INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
SIX MONTHS ENDED MARCH 31, 2000
Information regarding the Company's operating segments follows for the three
months ended March 31, 2000 and 1999 follows:
<TABLE>
<CAPTION>
Manufacturing Truck Leasing
Operations Group Operations Totals
------------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
2000
Net sales $28,065,838 $10,268,242 $0 $38,334,080
Lease revenues $0 0 1,450,250 1,450,250
Operating income (loss) $2,231,545 (118,822) 160,730 2,273,453
Interest expense, net $708,475 472,328 254,992 1,435,795
Income (loss) before
income taxes $1,643,475 (600,150) 167,289 1,210,614
Identifiable assets $84,452,910 23,150,563 22,421,835 130,025,308
Capital expenditures $454,230 0 0 454,230
Depreciation and
amortization $847,582 0 0 847,582
1999
Net sales $25,445,169 $6,411,612 $0 $31,856,781
Lease revenues $0 0 947,438 947,438
Operating income $1,476,680 283,331 124,936 1,884,947
Interest expense, net $377,626 238,144 155,679 771,449
Income before
income taxes $1,187,015 109,984 155,656 1,452,655
Identifiable assets $81,428,817 16,290,401 11,830,135 109,549,353
Capital expenditures $1,807,008 0 0 1,807,008
Depreciation and
amortization $855,795 0 0 855,795
</TABLE>
9 of 15
<PAGE> 10
MCCLAIN INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
SIX MONTHS ENDED MARCH 31, 2000
Information regarding the Company's operating segments follows for the six
months ended March 31, 2000 and 1999 follows:
<TABLE>
<CAPTION>
Manufacturing Truck Leasing
Operations Group Operations Totals
------------- ------------- ------------ ------------
<S> <C> <C> <C> <C>
2000
Net sales $50,913,900 $17,012,798 $0 $67,926,698
Lease revenues $0 0 2,638,507 2,638,507
Operating income (loss) $3,591,700 (58,407) 397,414 3,930,707
Interest expense, net $1,324,212 886,391 483,446 2,694,049
Income (loss) before
income taxes $2,494,709 (962,798) 403,973 1,935,884
Identifiable assets $84,452,910 23,150,563 22,421,835 130,025,308
Capital expenditures $926,217 0 0 926,217
Depreciation and
amortization $1,691,535 0 0 1,691,535
1999
Net sales $45,367,615 $13,646,072 $0 $59,013,687
Lease revenues $0 0 1,712,087 1,712,087
Operating income (loss) $2,372,582 590,514 317,405 3,280,501
Interest expense, net $1,087,414 238,144 308,967 1,634,525
Income (loss) before
income taxes $1,538,149 417,167 348,125 2,303,441
Identifiable assets $81,428,817 16,290,401 11,830,135 109,549,353
Capital expenditures $2,131,787 0 0 2,131,787
Depreciation and
amortization $1,656,548 0 0 1,656,548
</TABLE>
10 of 15
<PAGE> 11
MCCLAIN INDUSTRIES, INC.
ITEM TWO. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
Overview
The following discussion should be read in conjunction with the
condensed consolidated financial statements, including the notes
thereto, appearing elsewhere in this report.
Selected financial data for the Company for the periods indicated:
<TABLE>
<CAPTION>
(Unaudited) (Unaudited)
Three Months Ended Six Months Ended
March 30, March 31,
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net Sales $38,334,080 $31,856,781 $67,926,698 $59,013,687
Net Income 799,614 958,655 1,277,884 1,520,441
Net Earnings Per Common
Share (Basic and Diluted) $ .17 .20 $ .28 $ .32
</TABLE>
<TABLE>
<CAPTION>
(Unaudited)
As of As of
March 31, September 30,
2000 1999
------------ ------------
<S> <C> <C>
Working Capital $ 60,173,798 $ 58,689,965
Total Assets 130,025,308 129,923,989
Long-Term Debt 64,192,907 62,648,684
Stockholder's Investment 31,874,803 30,890,965
Common shares outstanding
(Basic and Diluted) 4,600,268 4,684,439
Current Ratio 2.96:1 2:79:1
Long-Term Debt to Equity
Stockholders' Investment 2.01:1 2.03:1
</TABLE>
11 of 15
<PAGE> 12
MCCLAIN INDUSTRIES, INC.
The following table presents, as a percentage of net sales, certain selected
financial data for the Company for the periods indicated:
<TABLE>
<CAPTION>
(Unaudited) (Unaudited)
Three Months Ended Six Months Ended
March 31, March 31,
2000 1999 2000 1999
-------------------------------------
<S> <C> <C> <C> <C>
Net Sales 100.00% 100.00% 100.00% 100.00%
Cost of Sales 82.98 81.94 82.17 82.05
------ ------ ------ ------
Gross Profit 17.02 18.06 17.83 17.95
Selling, General &
Administrative Expenses 11.09 12.22 12.04 12.44
------ ------ ------ ------
Operating Income 5.93 5.84 5.79 5.51
Other Expenses ( 2.77) ( 1.36) ( 2.94) ( 1.66)
------ ------ ------ ------
Income before Income Taxes 3.16 4.48 2.85 3.85
Income Taxes ( 1.07) ( 1.53) ( 0.97) ( 1.31)
------ ------ ------ ------
Net Income 2.09% 2.95% 1.88% 2.54%
------ ------ ------ ------
</TABLE>
12 of 15
<PAGE> 13
MCCLAIN INDUSTRIES, INC.
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
Net sales increased 20.3% to $38.3 million for the quarter ended March
31, 2000 (Quarter 2000) from $31.9 million for the quarter ended March 31, 1999
(Quarter 1999). The increase was due primarily to strong sales by the Company's
McClain Commodities and McClain Truck divisions. Sales for McClain Commodities
increased 35.9% or $3.5 million for the Quarter 2000 over the Quarter 1999,
while McClain Truck sales increased 63.0% or $3.4 million during the Quarter
2000 compared to the Quarter 1999. Sales of the Company's other product lines
were flat for the Quarter 2000 compared to the Quarter 1999. The sales of the
McClain Truck division accounted for 22.9% of the Company's sales for the
Quarter 2000 compared to 16.9% of the Company's sales for the Quarter 1999.
Cost of goods sold increased to 83.0% for the Quarter 2000 from 81.9%
for the Quarter 1999. The gross profit margin on manufactured products decreased
to 22.0% for the Quarter 2000 compared to 21.5% for the Quarter 1999. The gross
profit margin for the McClain Truck division decreased to 3.7% for the Quarter
2000 from 6.1% for the Quarter 1999 due to tighter margins on the dump truck
chassis sold by the Company that result from continued softness in the dump
truck market.
Selling, General & Administrative Expenses increased slightly to 11.09%
of net sales for the Quarter 2000 from 12.22% of net sales for the Quarter 1999
due primarily to increased sales.
Net Income for the quarter decreased to 2.09% of sales for the quarter
2000 from 2.95% for the quarter 1999. This decrease was due primarily to the
additional interest costs of carrying the increased debt necessary to fund the
Company's expanded truck inventory. 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 year ended September 30, 1999.
Net sales increased 15.1% to $67.9 million for the six months ended
March 31, 2000 (six months 2000) from $59.0 million for the six months ended
March 31, 1999 (six months 1999). The increase was due primarily to strong sales
by the Company's McClain Commodities and McClain Truck divisions. Sales for
McClain Commodities increased 23.8% or $4.5 million for the six months 2000 over
the six months 1999, while McClain Truck sales increased 21.3% or $2.5 million
during the six months 2000 compared to the six months 1999. Sales of the
Company's other product lines were flat for the six months 2000 compared to the
six months 1999. The sales of the McClain truck division accounted for 20.7% of
the Company's sales for the six months 2000 compared to 19.7% of the Company's
sales for the six months 1999.
Cost of goods sold increased to 82.2% for the six months ended March
2000 from 82.0% for the six months ended March 1999 due primarily to the higher
percentage of truck sales discussed previously. The gross profit margin on
manufactured products increased to 22.4% for
13 of 15
<PAGE> 14
the six months 2000 compared to 22.0% for the six months 1999. This increase is
the result of increased production, providing overhead reductions at certain of
the Company's manufacturing facilities. The gross profit margin for the McClain
Truck division decreased to 4.2% for the six months 2000 from 6.3% for the six
months 1999 due to tighter margins on the dump truck chassis sold by the Company
that result from continued softness in the dump truck market.
Selling, General & Administrative Expenses decreased to 12.04% of net
sales for the six months 2000 from 12.44% of net sales for the six months 1999
as a result of the increased sales volume.
Net Income for the quarter decreased to 1.88% of sales for the six
months 2000 from 2.54% for the six months 1999. This decrease was due primarily
to the additional interest costs of carrying the increased debt necessary to
fund the Company's expanded truck inventory. 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 year ended September 30, 1999.
The Company had working capital of $60.2 million at March 31, 2000
compared to $58.7 million at September 30, 1999. The ratio of current assets to
current liabilities was 2.96:1 at March 31, 2000 and 2.79:1 at September 30,
1999. The Company's cash and cash equivalents totaled $2.6 million at March 31,
2000. Cash flows provided by operations were $.6 million for the six months
ended March 31, 2000.
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<PAGE> 15
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
McCLAIN INDUSTRIES, INC.
Date: May 5, 2000 By: Kenneth D. McClain
---------------------------- -------------------------------
Kenneth D. McClain, President
Date: May 5, 2000 By: Mark S. Mikelait
---------------------------- ----------------------------------
Mark S. Mikelait, Treasurer
15 of 15
<PAGE> 16
]
Exhibit Index
-------------
<TABLE>
<CAPTION>
Exhibit No. Description
- ----------- -----------
<S> <C>
27 Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 2,575,673
<SECURITIES> 0
<RECEIVABLES> 16,920,847
<ALLOWANCES> 0
<INVENTORY> 63,563,786
<CURRENT-ASSETS> 90,842,317
<PP&E> 45,071,827
<DEPRECIATION> 22,333,555
<TOTAL-ASSETS> 130,025,308
<CURRENT-LIABILITIES> 30,668,519
<BONDS> 0
0
0
<COMMON> 4,452,002
<OTHER-SE> 27,422,801
<TOTAL-LIABILITY-AND-EQUITY> 130,025,308
<SALES> 0
<TOTAL-REVENUES> 67,926,698
<CGS> 55,814,549
<TOTAL-COSTS> 55,814,549
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,694,049
<INCOME-PRETAX> 1,935,884
<INCOME-TAX> 658,000
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,277,884
<EPS-BASIC> .28
<EPS-DILUTED> .28
</TABLE>
