<PAGE>
================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended: April 30, 1998 Commission file number 001-07763
MET-PRO CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 23-1683282
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
160 Cassell Road, P.O. Box 144
Harleysville, Pennsylvania 19438
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (215) 723-6751
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 and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
--- ---
The number of shares outstanding of the Registrant's common stock (par
value $0.10 per share) is 6,996,298 (as of April 30, 1998).
================================================================================
<PAGE>
MET-PRO CORPORATION
INDEX
PART I - FINANCIAL INFORMATION
<TABLE>
<CAPTION>
Item 1. Financial Statements
<S> <C> <C>
Condensed consolidated balance sheet as of
April 30, 1998 and January 31, 1998......................................................... 2
Condensed consolidated statement of operations for the three-month
periods ended April 30, 1998 and 1997....................................................... 3
Condensed consolidated statement of stockholders' equity for the
three-month periods ended April 30, 1998 and 1997........................................... 4
Condensed consolidated statement of cash flows for the three-month
periods ended April 30, 1998 and 1997....................................................... 5
Notes to condensed consolidated financial statements................................................. 6
Report on review by independent accountants.......................................................... 8
Item 2. Management's discussion and analysis of financial condition
and results of operations................................................................... 9
PART II - OTHER INFORMATION
Item 6(b). Reports on Form 8-K......................................................................... 12
SIGNATURES.................................................................................................... 12
</TABLE>
-1-
<PAGE>
MET-PRO CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(unaudited)
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
<CAPTION>
April 30, January 31,
ASSETS 1998 1998
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Current assets
Cash and cash equivalents $ 9,780,565 $11,253,380
Accounts receivable, net of allowance for doubtful
accounts of approximately $268,000 and
$280,000, respectively 10,128,804 10,664,310
Notes receivable, ESOT -- 200,000
Inventories - Note 3 13,059,777 12,210,749
Prepaid expenses, deposits and other current assets 982,567 723,965
Deferred income taxes 1,014,856 1,014,856
- ------------------------------------------------------------------------------------------------------------------------
Total current assets 34,966,569 36,067,260
Property, plant and equipment, net 13,783,213 13,787,596
Costs in excess of net assets of businesses acquired, net 7,257,982 7,198,915
Other assets 1,159,756 930,469
- ------------------------------------------------------------------------------------------------------------------------
Total assets $57,167,520 $57,984,240
========================================================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------------------------------------------------------------------------------------------
Current liabilities
Current portion of long-term debt $ 1,093,932 $ 1,441,964
Accounts payable 3,207,803 2,648,943
Accrued salaries, wages and expenses 6,845,671 6,523,442
Payroll and other taxes payable 19,832 5,746
Customers' advances 125,379 647,450
- ------------------------------------------------------------------------------------------------------------------------
Total current liabilities 11,292,617 11,267,545
Long-term debt 2,042,813 2,242,047
Other non-current liabilities 268,988 249,037
Deferred income taxes 377,701 384,782
- ------------------------------------------------------------------------------------------------------------------------
Total liabilities 13,982,119 14,143,411
- ------------------------------------------------------------------------------------------------------------------------
Stockholders' equity
Common stock, $.10 par value; 18,000,000 shares
authorized, 7,138,625 shares issued at both dates,
of which 142,327 and 145,152 shares were reacquired
and held in treasury at the respective dates 713,862 713,862
Additional paid-in capital 7,509,362 7,868,357
Retained earnings 37,304,847 37,667,872
Accumulated other comprehensive income (178,282) (219,015)
Treasury stock, at cost (2,164,388) (2,190,247)
- ------------------------------------------------------------------------------------------------------------------------
Net stockholders' equity 43,185,401 43,840,829
- ------------------------------------------------------------------------------------------------------------------------
Total liabilities and stockholders' equity $57,167,520 $57,984,240
========================================================================================================================
</TABLE>
See accompanying notes to condensed consolidated financial statements.
-2-
<PAGE>
<TABLE>
<CAPTION>
MET-PRO CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited)
Three Months Ended
April 30,
1998 1997
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net sales $14,940,888 $14,912,736
Cost of goods sold 9,237,989 9,220,276
- ----------------------------------------------------------------------------------------------------------------------------------
Gross profit 5,702,899 5,692,460
- ----------------------------------------------------------------------------------------------------------------------------------
Operating expenses
Selling 1,407,457 1,387,587
General and administrative 1,637,410 1,701,440
- ----------------------------------------------------------------------------------------------------------------------------------
3,044,867 3,089,027
- ----------------------------------------------------------------------------------------------------------------------------------
Income from operations 2,658,032 2,603,433
Other income, net 190,397 177,496
- ----------------------------------------------------------------------------------------------------------------------------------
Income before taxes 2,848,429 2,780,929
Provision for taxes 1,110,885 1,084,562
- ----------------------------------------------------------------------------------------------------------------------------------
Net income $ 1,737,544 $ 1,696,367
==================================================================================================================================
Earnings per share, basic (1) $ .25 $ .24
Earnings per share, diluted (2) $ .25 $ .24
Cash dividend per share - declared (3) $ .30 $ .27
Cash dividend per share - paid (3) $ .30 $ .27
==================================================================================================================================
</TABLE>
(1) Basic earnings per share are based upon the weighted average number of
common shares outstanding of 7,009,023 on April 30, 1998 and 7,055,665 on
April 30, 1997.
(2) Diluted earnings per share are based upon the weighted average number of
common shares outstanding of 7,071,478 on April 30, 1998 and 7,149,331
on April 30, 1997.
(3) On February 23, 1998, the Company declared a $.30 per share cash dividend
payable on April 24, 1998 to shareholders of record on April 10, 1998. On
February 24, 1997, the Company declared a cash dividend of $.27 per share
payable on April 25, 1997 to shareholders of record on April 11, 1997.
See accompanying notes to condensed consolidated financial statements.
-3-
<PAGE>
<TABLE>
<CAPTION>
MET-PRO CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
(unaudited)
Accumulated
Additional Other
Common Paid-in Retained Comprehensive Treasury
Stock Capital Earnings Income/(Loss) Stock Total
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Balances, January 31, 1998 $713,862 $7,868,357 $37,667,872 ($219,015) ($2,190,247) $43,840,829
Comprehensive income:
Net income 1,737,544
Foreign currency translation 40,733
Total comprehensive income 1,778,277
Dividends paid, $.30 per share (2,100,569) (2,100,569)
Stock option transactions (358,995) 720,315 361,320
Purchase of 44,800 shares of (694,456) (694,456)
treasury stock
- -------------------------------------------------------------------------------------------------------------------------
Balances, April 30, 1998 $713,862 $7,509,362 $37,304,847 ($178,282) ($2,164,388) $43,185,401
=========================================================================================================================
Accumulated
Additional Other
Common Paid-in Retained Comprehensive Treasury
Stock Capital Earnings Income/(Loss) Stock Total
- -------------------------------------------------------------------------------------------------------------------------
Balances, January 31, 1997 $713,862 $8,260,289 $32,467,223 $ 19,121 ($1,107,569) $40,352,926
Comprehensive income:
Net income 1,696,367
Foreign currency translation (108,257)
Total comprehensive income 1,588,110
Dividends paid, $.27 per share (1,915,832) (1,915,832)
Stock option transactions (434,732) 897,752 463,020
Purchase of 22,600 shares of (305,918) (305,918)
treasury stock
- -------------------------------------------------------------------------------------------------------------------------
Balances, April 30, 1997 $713,862 $7,825,557 $32,247,758 ($89,136) ($515,735) $40,182,306
=========================================================================================================================
</TABLE>
See accompanying notes to condensed consolidated financial statements.
-4-
<PAGE>
<TABLE>
<CAPTION>
MET-PRO CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)
Three Months Ended
April 30,
1998 1997
- -----------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
<S> <C> <C>
Net cash provided by operating activities $ 2,231,312 $ 2,726,808
- -----------------------------------------------------------------------------------------------------------------------
Cash flows from investing activities
Proceeds from sale of property and equipment -- 11,139
Acquisitions of property and equipment (321,994) (255,240)
Acquisitions of other intangibles (404,998) --
- -----------------------------------------------------------------------------------------------------------------------
Net cash (used in) investing activities (726,992) (244,101)
- -----------------------------------------------------------------------------------------------------------------------
Cash flows from financing activities
Reduction of debt (547,266) (395,456)
Exercise of stock options 361,320 430,425
Payment of dividends (2,100,569) (1,915,832)
Purchase of treasury shares (694,456) (305,918)
- -----------------------------------------------------------------------------------------------------------------------
Net cash (used in) financing activities (2,980,971) (2,186,781)
- -----------------------------------------------------------------------------------------------------------------------
Effect of exchange rate changes on cash 3,836 (16,045)
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in cash and cash equivalents (1,472,815) 279,881
Cash and cash equivalents at February 1 11,253,380 9,070,976
- -----------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents at April 30 $ 9,780,565 $ 9,350,857
=======================================================================================================================
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the period for:
Interest $ 83,748 $ 87,527
Income taxes $ 422,640 $ 427,565
=======================================================================================================================
</TABLE>
See accompanying notes to condensed consolidated financial statements.
-5-
<PAGE>
MET-PRO CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - PRINCIPLES OF CONSOLIDATION
The condensed consolidated financial statements include the accounts of Met-Pro
Corporation and its wholly owned subsidiaries ("Met-Pro" or the "Company"),
Strobic Air Corporation and Mefiag B.V. All significant intercompany accounts
and transactions have been eliminated in consolidation.
NOTE 2 - BASIS OF PRESENTATION
In the opinion of management, the accompanying unaudited condensed financial
statements contain all adjustments necessary to present fairly the financial
position as of April 30, 1998 and the results of operations for the three-month
periods ended April 30, 1998 and 1997, the statement of stockholder's equity and
the statement of cash flows for the three-month periods then ended. The results
of operations for the three-month period ended April 30, 1998 are not
necessarily indicative of the results to be expected for the full year. These
condensed consolidated financial statements should be read in conjunction with
the audited consolidated financial statements and notes thereto contained in the
Company's Annual Report on Form 10-K for the year ended January 31, 1998.
In June 1997, the Financial Accounting Standards Board (the "FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 130, "Reporting
Comprehensive Income". The Company has adopted SFAS No. 130 in the three-months
ended April 30, 1998. This standard expands or modifies disclosures and has no
impact on the Company's consolidated results of operations, financial position
or cash flows.
In June 1997, the FASB issued SFAS No. 131, "Disclosures about Segments of an
Enterprise and Related Information". SFAS No. 131 establishes standards for the
way public business enterprises report information about segments in annual and
interim financial reports issued to shareholders. It also establishes standards
for related disclosures about products and services, geographic areas and major
customers. SFAS No. 131 is effective for financial statements for fiscal years
beginning after December 15, 1997. Financial statement disclosures for prior
periods are required to be restated. Met-Pro is in the process of evaluating the
disclosure requirements. The adoption of SFAS No. 131 will have no impact on
Met-Pro's consolidated results of operations, financial position or cash flows.
In February 1998, the FASB issued SFAS No. 132, "Employer's Disclosures about
Pensions and Other Postretirement Benefits". SFAS No. 132 establishes standards
for the disclosures of pension and other postretirement benefit plans. It does
not change the measurement and recognition standards for those plans, but does
revise and replace the prior disclosure requirements. SFAS No. 132 is effective
for fiscal years beginning after December 15, 1997. Financial statement
disclosures for prior periods are required to be restated. Met-Pro is in the
process of evaluating the disclosure requirements. The adoption of SFAS No. 132
will have no impact on Met-Pro's consolidated results of operations, financial
position or cash flows.
-6-
<PAGE>
MET-PRO CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 - INVENTORIES
Inventories consisted of the following:
April 30, January 31,
1998 1998
----------- -----------
Raw material $ 5,955,258 $ 5,570,663
Work in process 2,141,804 2,001,618
Finished goods 4,962,715 4,638,468
----------- -----------
$13,059,777 $12,210,749
=========== ===========
NOTE 4 - ACCOUNTANTS' 10-Q REVIEW
Margolis & Company P.C., the Company's auditors, has performed a limited review
of the financial information included herein. Their report on such review
accompanies this filing.
-7-
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors
Met-Pro Corporation and its Wholly Owned Subsidiaries
Harleysville, Pennsylvania
We have reviewed the accompanying condensed consolidated balance sheet of
Met-Pro Corporation and its wholly owned subsidiaries as of April 30, 1998 and
the related condensed consolidated statements of operations, stockholders'
equity and cash flows for the three-month periods ended April 30, 1998 and 1997.
These financial statements are the responsibility of the Company's management.
We conducted our reviews in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures to
financial data and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit conducted in
accordance with generally accepted auditing standards, the objective of which is
the expression of an opinion regarding the financial statements taken as a
whole. Accordingly, we do not express such an opinion.
Based on our reviews, we are not aware of any material modifications that should
be made to the accompanying condensed consolidated financial statements for them
to be in conformity with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the balance sheet as of January 31, 1998 and the related statements
of operations, stockholders' equity, and cash flows for the year then ended (not
presented herein); and in our report dated February 19, 1998, we expressed an
unqualified opinion on those financial statements. In our opinion, the
information set forth in the accompanying condensed consolidated balance sheet
as of January 31, 1998 is fairly stated, in all material respects, in relation
to the balance sheet from which it has been derived.
Certified Public Accountants
Bala Cynwyd, Pennsylvania
May 13, 1998
-8-
<PAGE>
MET-PRO CORPORATION
Item 2. Management's Discussion and Analysis of the Financial Condition and
Results of Operations
Results of Operations:
Three Months Ended April 30, 1998 vs Three Months Ended April 30, 1997
Net sales for the three-month period ended April 30, 1998 were $14,940,888
compared to $14,912,736 for the three-month period ended April 30, 1997, an
increase of $28,152. The length of time required to design, engineer,
manufacture and ship products, especially in the Pollution Control Systems and
Allied Equipment segment of our business, combined with contract requirements,
will cause shipments to vary from quarter to quarter.
The backlog of $5,712,487 at April 30, 1998 was 7.0% lower compared to the
backlog at the beginning of the fiscal year. Bookings of new orders were 15.9%
lower for the three-month period ended April 30, 1998 than for the three-month
period ended April 30, 1997. This does not include an additional $5,841,652 of
orders in house at April 30, 1998 which, according to our longstanding policy,
are not included in the backlog until, as engineered products, complete drawings
have been approved.
Net income for the three-month period ended April 30, 1998 was $1,737,544
compared to $1,696,367 for the three-month period ended April 30, 1997, an
increase of $41,177 or 2.4%. The increase in net income is related to the higher
sales volume and continuing cost controls for the three-month period ended April
30, 1998.
The gross margin for the three-month period ended April 30, 1998 was the same as
the prior year at 38.2%. The constant gross margin can be attributed to
continued production efficiencies in both business segments.
Selling expense increased $19,870 during the three-month period ended April 30,
1998 compared to the same period last year. Selling expense as a percentage of
net sales was 9.4% for the three-month period ended April 30, 1998, a slight
increase compared to the three-month period ended April 30, 1997.
General and administrative expense was $1,637,410 for the three-month period
ended April 30, 1998 compared to $1,701,440 for the same period last year, a
decrease of $64,030. The Company's continued focus on cost controls enables it
to decrease overall general and administrative expenses. General and
administrative expense as a percentage of net sales decreased to 11.0% for the
three-month period ended April 30, 1998 from 11.4% for the same period last
year.
Other income, net, increased $12,901 for the three-month period ended April 30,
1998 compared to the three-month period ended April 30, 1997, due to interest
earned on higher cash balances.
The effective tax rate for the three-month periods ended April 30, 1998 and
April 30, 1997 was 39.0%.
-9-
<PAGE>
MET-PRO CORPORATION
Item 2. Management's Discussion and Analysis of the Financial Condition and
Results of Operations continued...
Liquidity:
The Company's cash and cash equivalents was $9,780,565 on April 30, 1998
compared to $11,253,380 on January 31, 1998, a decrease of $1,472,815. This
decrease is the net result of positive cash flow provided by operating
activities of $2,231,312, proceeds received from the exercise of stock options
of $361,320, offset by payment of the annual cash dividend amounting to
$2,100,569, payments on long-term debt totalling $547,266, purchase of treasury
stock amounting to $694,456, acquisition of other intangibles amounting to
$404,998 and investment in property and equipment amounting to $321,994. The
Company's cash flows from operating activities are influenced by the timing of
shipments and negotiated standard payment terms, including retention associated
with major projects.
Accounts receivable (net) amounted to $10,128,804 on April 30, 1998 compared to
$10,664,310 on January 31, 1998, which represents a decrease of $535,506. The
timing and size of shipments and retainage on contracts, especially in the
Pollution Control Systems and Allied Equipment segment will influence accounts
receivable balances at any point in time.
Inventories were $13,059,777 on April 30, 1998 compared to $12,210,749 on
January 31, 1998, an increase of $849,028. Inventory balances fluctuate
depending upon market demand, the size and timing of orders and long lead times
required.
Current liabilities amounted to $11,292,617 on April 30, 1998 compared to
$11,267,545 on January 31, 1998, an increase of $25,072. Accounts payable,
accrued expenses, and payroll and other taxes payable, offset by the reduction
in the current portion of long-term debt, accounted for the slight increase.
The Company has consistently maintained a high current ratio and has not
utilized either the domestic line of credit or the foreign line of credit
totalling $5.0 million, which are available for working capital purposes. Funds,
in general, have exceeded the current needs of the Company. The Company
presently foresees no immediate or future change in this situation.
Capital Resources and Requirements:
Cash flows provided by operating activities during the three-month period ended
April 30, 1998 amounted to $2,231,312 compared with $2,726,808 in the
three-month period ended April 30, 1997, a decrease of $495,496.
Cash flows used in investing activities during the three-month period ended
April 30, 1998 amounted to $726,992 compared with $244,101 for the three-month
period ended April 30, 1997. The Company's investing activities principally
represent the acquisitions of property, plant and equipment in the two operating
segments. During the three-month period ended April 30, 1998, the Company
acquired certain assets of a distributor of its Stiles-Kem products, located in
the Southeastern United States, for a purchase price of approximately $400,000.
The purchase price was allocated to customer lists, covenants not to compete and
goodwill.
Financing activities during the three-month period ended April 30, 1998 utilized
$2,980,971 of available resources compared to $2,186,781 for the three-month
period ended April 30, 1997. The 1998 activity is the result of the payment of
the annual cash dividend amounting to $2,100,569, reduction of long-term debt
totalling $547,266, plus the purchase of treasury stock totalling $694,456,
offset by proceeds provided by the exercise of stock options totalling $361,320.
-10-
<PAGE>
MET-PRO CORPORATION
Item 2. Management's Discussion and Analysis of the Financial Condition and
Results of Operations continued...
On February 23, 1998, the Board of Directors declared a $.30 per share annual
cash dividend (compared to the $.27 per share cash dividend paid in April, 1997)
payable on April 24, 1998 to stockholders of record on April 10, 1998. The
dividend paid in April 24, 1998 on the Common Stock represented 29.5% of the
prior fiscal year earnings.
Consistent with past practices, the Company will continue to invest in new
product development programs, and to make capital expenditures to support the
on-going operations during the coming year. The Company expects to finance all
capital expenditure requirements through cash flows generated from operations.
Year 2000 Compliance:
During the fiscal year ended January 31, 1998, the Company began to modify its
computer software to correctly process dates for the Year 2000. The Company
presently believes that the modifications to its existing software are complete.
Although the Company does not expect that it will incur material sums prior to
the year 2000 in connection with computer software modifications required in
connection therewith, no assurances can be given as to this, nor as to whether
the Company will not be adversely affected by Year 2000 compliance problems.
Cautionary Statement Regarding Forward Looking Statements:
As a cautionary note to investors, the Company and its representatives may make
oral or written statements from time to time that are "forward-looking
statements". This would include information concerning possible or assumed
future activities, plans, results of operations of the Company and statements
preceded by, followed by or that include the words "believes", "expects",
"anticipates", "intends" or similar expressions. For those statements, the
Company claims the protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995.
There are a number of important factors which could cause actual results to
differ materially from those anticipated. The Company believes that its future
operating results will continue to be subject to quarterly variations based upon
a wide variety of factors including the cyclical nature of both the business
segments and the markets addressed by the Company's products, price erosion,
competitive factors, the timing of new product introductions, changes in product
mix, the availability and extent of utilization of manufacturing capacity,
product obsolescence and the ability to develop and implement new technologies.
The Company's operating results could also be impacted by sudden fluctuations in
customer requirements, currency exchange rate fluctuations and other economic
conditions affecting customer demand and the cost of operations in one or more
of the global markets in which the Company does business. As a participant in
the pollution control and fluid handling industries, the Company operates in a
rapidly changing and highly competitive environment. The Company sells both
custom products to customers, and industrial products; accordingly, changes in
the conditions or composition of any of the Company's customers may have an
impact on the Company. While the Company cannot predict what effect these
various factors may have on its financial results, the aggregate effect of these
and other factors could result in volatility in the Company's future performance
and stock price.
-11-
<PAGE>
MET-PRO CORPORATION
PART II - OTHER INFORMATION
Item 6(b). Reports on Form 8-K:
There were no reports on Form 8-K filed for the three-month period ended
April 30, 1998.
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.
Met-Pro Corporation
-------------------------------------------
(Registrant)
May 27, 1998 /s/ William L. Kacin
-------------------------------------------
William L. Kacin,
President,
Chief Executive Officer and Director
May 27, 1998 /s/ Gary J. Morgan
-------------------------------------------
Gary J. Morgan,
Vice President of Finance,
Secretary and Treasurer, Chief
Financial Officer, Chief Accounting Officer,
and Director
-12-
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-31-1999
<PERIOD-END> APR-30-1998
<CASH> 9,780,565
<SECURITIES> 0
<RECEIVABLES> 10,128,804
<ALLOWANCES> 268,130
<INVENTORY> 13,059,777
<CURRENT-ASSETS> 34,966,569
<PP&E> 26,764,413
<DEPRECIATION> 12,981,200
<TOTAL-ASSETS> 57,167,520
<CURRENT-LIABILITIES> 11,292,617
<BONDS> 3,136,745
<COMMON> 713,862
0
0
<OTHER-SE> 42,471,539
<TOTAL-LIABILITY-AND-EQUITY> 57,167,520
<SALES> 14,940,888
<TOTAL-REVENUES> 14,940,888
<CGS> 9,237,989
<TOTAL-COSTS> 12,282,856
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 79,579
<INCOME-PRETAX> 2,848,429
<INCOME-TAX> 1,110,885
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,737,544
<EPS-PRIMARY> .25
<EPS-DILUTED> .25
</TABLE>
