<PAGE> 1
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
For the Quarter ended September 30, 1997 Commission File Number 1-9335
-------------
SCHAWK, INC.
(Exact name of Registrant
as specified in its charter)
DELAWARE
(State or other jurisdiction of incorporation or organization)
36-2545354
(I.R.S. Employer Identification No.)
1695 RIVER ROAD
DES PLAINES, ILLINOIS
(Address of principal executive office)
60018
(Zip Code)
847-827-9494
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12 (b) of the Act:
Title of Each Class Name of Exchange on Which Registered
------------------- -------------------------------------
CLASS A COMMON STOCK, NEW YORK STOCK EXCHANGE
$.008 PAR VALUE
Indicated 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
--- ---
The number of shares outstanding of each of the issuer's classes of common stock
as of September 30, 1997, are:
19,803,739 shares, Common Stock, $.008 par value
------------------------------------------------
DOCUMENTS INCORPORATED BY REFERENCE
Pursuant to the Securities Exchange Act of 1934 Release 15502 and Rule
240.03(b), the pages of this document have been numbered sequentially. The total
number of pages contained herein is 15.
<PAGE> 2
PART I
Schawk, Inc.
Condensed Consolidated Balance Sheets
(In Thousands)
<TABLE>
<CAPTION>
September 30,
1997 December 31,
(unaudited) 1996
----------------------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents ......................................... $ 1,878 $ 483
Short term investments ............................................ 18,967 --
Trade accounts receivable, less allowance for doubtful accounts
of $598 in 1997 and $760 in 1996 ................................ 22,012 19,294
Inventories ....................................................... 5,287 3,675
Prepaid expenses and other ........................................ 2,460 6,258
Current assets of Plastics business held for sale ................. -- 27,495
Deferred income taxes ............................................. 472 590
--------------------------
Total current assets ................................................. 51,076 57,795
Marketable securities ................................................ 33,354 --
Property and equipment, net .......................................... 27,795 27,453
Property and equipment of Plastics business held for sale ............ -- 48,788
Excess of cost over net assets acquired, less accumulated amortization
of $4,179 in 1997 and $3,449 in 1996 .............................. 12,414 13,158
Other assets of Plastics business held for sale ...................... -- 9,593
Other assets ......................................................... 4,912 4,053
--------------------------
Total assets ......................................................... $ 129,551 $ 160,840
==========================
LIABILITIES AND STOCKHOLDERS EQUITY
Current liabilities:
Trade accounts payable ............................................ $ 3,633 $ 4,116
Accrued expenses .................................................. 9,819 8,786
Income taxes payable .............................................. 7,654 --
Notes payable to stockholders ..................................... -- 5,765
Current liabilities of Plastics business held for sale ............ -- 7,270
Notes payable to banks ............................................ 4,200 9,586
Current portion of long-term debt and capital lease obligations ... 391 391
--------------------------
Total current liabilities ............................................ 25,697 35,914
Long-term debt ....................................................... 40,000 62,500
Capital lease obligations ............................................ 4,963 5,285
Other ................................................................ 1,116 1,217
Deferred income taxes ................................................ 4,372 3,187
Deferred income taxes of Plastics business held for sale ............. -- 3,811
STOCKHOLDERS EQUITY:
Common stock ...................................................... 159 168
Preferred stock ................................................... -- --
Additional paid-in capital ........................................ 78,318 77,928
Retained earnings (Deficit) ....................................... (23,491) (26,987)
Unrealized gain on available for sale securities .................. 1,558 --
Cumulative foreign currency translation adjustment ................ (212) --
--------------------------
56,332 51,109
Treasury stock, at cost ........................................... (2,929) (1,523)
Notes receivable from employees ................................... -- (660)
--------------------------
53,403 48,926
--------------------------
Total liabilities and stockholders equity ........................... $ 129,551 $ 160,840
==========================
</TABLE>
See accompanying notes.
2
<PAGE> 3
Schawk, Inc.
Condensed Consolidated Statements of Operations
Three Months Ended September 30, 1997 and 1996
(Unaudited)
(In Thousands, Except Per Share Amounts)
<TABLE>
1997 1996
--------------------
<S> <C> <C>
Net sales............................................ $ 29,568 $ 22,972
Cost of sales ....................................... 16,523 13,045
Selling, general, and administrative expenses ....... 7,872 6,109
--------------------
Operating income .................................... 5,173 3,818
Other income (expense)
Interest and dividend income ..................... 843 95
Interest expense ................................. (918) (1,173)
Other ............................................ 422 --
--------------------
347 (1,078)
--------------------
Income from continuing operations before income
taxes............................................. 5,520 2,740
Income tax provision ................................ 2,208 1,096
--------------------
Income from continuing operations ................... 3,312 1,644
Income from discontinued operations ................. -- 577
--------------------
Net income .......................................... 3,312 2,221
Preferred dividends ................................. 285 313
--------------------
Net income available for common shares .............. $ 3,027 $ 1,908
====================
Primary and fully diluted earnings per share:
Continuing operations ............................ $ 0.15 $ 0.07
Discontinued operations .......................... -- 0.03
--------------------
Total ............................................... $ 0.15 $ 0.10
====================
Weighted average number of common and common
equivalent shares outstanding .................... 19,904 19,607
Dividends per Class A common share .................. $ 0.065 $ 0.065
</TABLE>
See accompanying notes.
3
<PAGE> 4
Schawk, Inc.
Condensed Consolidated Statements of Operations
Nine Months Ended September 30, 1997 and 1996
(Unaudited)
(In Thousands, Except Per Share Amounts)
<TABLE>
1997 1996
--------------------
<S> <C> <C>
Net sales ........................................... $ 85,157 $ 63,881
Cost of sales ....................................... 47,853 36,398
Selling, general, and administrative expenses ....... 23,527 17,953
--------------------
Operating income .................................... 13,777 9,530
Other income (expense)
Interest and dividend income ..................... 2,149 326
Interest expense ................................. (2,791) (3,299)
Other ............................................ 563 85
--------------------
(79) (2,888)
--------------------
Income from continuing operations before income
taxes............................................. 13,698 6,642
Income tax provision ................................ 5,479 2,487
--------------------
Income from continuing operations ................... 8,219 4,155
Income from discontinued operations ................. -- 1,866
--------------------
Net income .......................................... 8,219 6,021
Preferred dividends ................................. 855 939
--------------------
Net income available for common shares .............. $ 7,364 $ 5,082
====================
Primary and fully diluted earnings per share:
Continuing operations ............................ $ 0.37 $ 0.17
Discontinued operations .......................... -- 0.09
--------------------
Total ............................................... $ 0.37 $ 0.26
====================
Weighted average number of common and common
equivalent shares outstanding .................... 19,879 19,463
Dividends per Class A common share .................. $ 0.195 $ 0.195
</TABLE>
See accompanying notes
4
<PAGE> 5
Schawk, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Nine Months Ended September 30, 1997 and 1996
(In Thousands)
<TABLE>
1997 1996
--------------------
<S> <C> <C>
Operating activities
Net income .......................................................... $ 8,219 $ 6,021
Adjustments to reconcile net income to cash provided by operating
activities:
Depreciation and amortization .................................. 5,309 11,759
Deferred income taxes .......................................... 1,303 491
Gain realized on sale of marketable securities ................. (567) --
Changes in operating assets and liabilities, net of effects from
acquisitions:
Trade accounts receivable .................................. (2,718) 2,851
Inventories ................................................ (1,612) (2,274)
Prepaid expenses and other ................................. 3,798 162
Trade accounts payable and accrued expenses ................ (3,394) 426
Income taxes payable ....................................... (6,432) --
--------------------
Net cash provided by operating activities ........................... 3,906 19,436
Investing activities
Proceeds from disposal of operating division ........................ 93,485 5,000
Proceeds from sale of marketable securities ......................... 2,789 --
Proceeds from disposal of property and equipment .................... 441 --
Purchase of marketable securities ................................... (52,985) --
Purchases of property and equipment ................................. (5,458) (9,912)
Acquisitions, net of cash acquired .................................. -- (6,826)
Other ............................................................... (749) (1,441)
--------------------
Net cash provided by (used in) investing activities ................. 37,523 (13,179)
Financing activities
Proceeds from sale of common stock .................................. 390 --
Proceeds from long term note collected .............................. -- 4,034
Proceeds from debt .................................................. -- 3,035
Principal payments on debt .......................................... (27,886) (7,590)
Principal payments on capital lease obligations ..................... (322) --
Principal payments on notes payable to stockholders ................. (5,765) --
Cash dividends ...................................................... (4,723) (2,618)
Purchase of common stock ............................................ (1,389) (1,269)
Other ............................................................... (127) 70
--------------------
Net cash provided by (used in) financing activities ................. (39,822) (4,338)
Effect of foreign currency exchange rates ........................... (212) (397)
--------------------
Net increase in cash and cash equivalents ........................... 1,395 1,522
Cash and cash equivalents beginning of period ....................... 483 1,917
--------------------
Cash and cash equivalents end of period ............................. $ 1,878 $ 3,439
====================
Supplementary disclosure of cash flow information:
Dividends issued in the form of Class A common stock ................ $ 6 $ 2,104
Cash paid for interest .............................................. 3,091 3,336
Cash paid for income taxes .......................................... 10,876 2,689
Note received for sale of operating division ........................ -- 2,619
Common stock issued in connection with acquisitions ................. -- 3,800
</TABLE>
See accompanying notes.
5
<PAGE> 6
Schawk, Inc.
Notes to Condensed Consolidated Interim Financial Statements
(Thousands of dollars, except per share data)
NOTE 1. BASIS OF PRESENTATION
The condensed consolidated financial statements have been prepared pursuant to
the rules and regulations of the Securities and Exchange Commission. Certain
information and footnote disclosures normally included in annual financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted pursuant to such rules and regulations, although
the Company believes the disclosures included are adequate to make the
information presented not misleading. In the opinion of management, all
adjustments necessary for a fair presentation for the periods presented have
been reflected and are of a normal recurring nature. These financial statements
should be read in conjunction with the consolidated financial statements and the
notes thereto for the three years ended December 31, 1996.
The Company consummated the sale of its Plastics business segment on February 7,
1997 for cash of $93,485 plus or minus working capital adjustments. The
Company recorded a loss of $33 million in the fourth quarter of 1996 to
adjust the carrying value of the net assets of this business to net realizable
value at December 31, 1996, and to reflect the related settlement of
shareholder litigation. The consolidated statements of operations for
the three and nine months ended September 30, 1996 have been restated to
segregate the discontinued operations, and the accounts of the discontinued
operations have been segregated in the balance sheet at December 31, 1996.
NOTE 2. INTERIM RESULTS
Results of operations for the interim periods are not necessarily indicative of
the results to be expected for the year.
NOTE 3. DESCRIPTION OF BUSINESS
Schawk, Inc. is a leading provider of digital imaging prepress services for
the consumer products industry in the United States and Canada. The Company
offers a complete line of high quality prepress services, digital image
management, digital photography and art production. The Company also
provides services for point-of-sale, advertising and direct mail.
NOTE 4. INVENTORIES
Inventories consist of the following:
<TABLE>
<CAPTION>
September 30 December 31
1997 1996
---- ----
<S> <C> <C>
Raw materials ............................. $ 1,336 $ 1,512
Work in process ........................... 4,686 2,898
--------- ---------
6,022 4,410
Less: LIFO reserve......................... (735) (735)
--------- ---------
$ 5,287 $ 3,675
========= =========
</TABLE>
6
<PAGE> 7
NOTE 5. PROPERTY AND EQUIPMENT
Property and equipment consist of the following:
<TABLE>
<CAPTION>
September 30 December 31
1997 1996
---- ----
<S> <C> <C>
Land and improvements ........................ $ 522 $ 522
Building and improvements .................... 7,794 7,794
Machinery and equipment ...................... 52,828 47,370
Leasehold improvements ....................... 3,209 3,209
Building and improvements under
capital leases............................. 7,500 7,500
-------- --------
71,853 66,395
Accumulated depreciation and amortization .... (44,058) (38,942)
-------- --------
$ 27,795 $ 27,453
======== ========
</TABLE>
NOTE 6. EARNINGS PER SHARE
In February 1997, the Financial Accounting Standards Board issued Statement No.
128, Earnings Per Share, which is required to be adopted on December 31, 1997.
At that time, the Company will be required to change the method currently used
to compute earnings per share and to restate all prior periods. Under the new
requirements for calculating primary earnings per share, the dilutive effect of
stock options will be excluded. The impact is not expected to have a material
impact on primary or fully diluted earnings per share for the three and nine
month periods ended September 30, 1997.
NOTE 7. INVESTMENTS
The Company has adopted Statement of Financial Accounting Standards (SFAS) No.
115, Accounting for Certain Investments in Debt and Equity Securities, which
requires that investments in debt securities and marketable equity securities be
designated as trading, held-to-maturity or available-for-sale. Management
determines the appropriate classification of its securities at the time of
purchase and reevaluates such designation as of each balance sheet date. At
September 30, 1997 all of the Company's investments were classified as available
for sale. Unrealized appreciation on these securities totaled $2,597 ($1,558 net
of tax effects) at September 30, 1997 and is included as a separate component of
stockholders' equity. Available-for-sale securities are carried at fair value,
with unrealized gains and losses, net of income taxes, reported in a separate
component of stockholders' equity. Realized gains and losses and declines in
value judged to be other-than-temporary on available for sale securities are
included in investment income. The cost of securities sold is based on the
specific identification method. Interest and dividends on securities classified
as available-for-sale are included in investment income.
7
<PAGE> 8
The following table is a summary of available for sale securities at September
30, 1997:
<TABLE>
<CAPTION>
Gross
Unrealized Estimated Fair
Cost Gains Value
---- ---------- --------------
<S> <C> <C> <C>
Equity securities and equity
mutual funds $ 8,297 $ 2,158 $10,455
U.S. Treasury and U.S.
Government notes 6,323 23 6,346
Corporate bonds 3,285 15 3,300
Bond mutual funds 31,819 401 32,220
------- ------- -------
$49,724 $ 2,597 $52,321
======= ======= =======
</TABLE>
During the nine month period ended September 30, 1997 marketable equity
available-for-sale securities were sold with a fair value at date of sale of
$2,789 with a gross realized gain of $567.
The following table is a summary of available-for-sale securities by maturity
date:
<TABLE>
<CAPTION>
Estimated Fair
Cost Value
---- --------------
<S> <C> <C>
Due in one year or less $20,077 $20,245
Due after one year through five years 20,841 21,107
Due after five years through ten years 509 514
------- -------
Total debt securities 41,427 41,866
Equity securities 8,297 10,455
------- -------
$49,724 $52,321
======= =======
</TABLE>
Amounts shown as short term investments on the condensed consolidated balance
sheet at September 30, 1997 represent management's estimates of amounts
available for current operations.
8
<PAGE> 9
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
(Thousands of dollars, except per share amounts)
On February 7, 1997, the Company closed the sale of the Plastics business
segment and received cash of $93,485. A final adjustment (the amount to be
determined) will be made based on working capital as of the date of the closing.
The statements of operations for the three and nine month periods ended
September 30, 1996 have been restated to segregate the operations of the
Plastics Group.
NET SALES of $29,568 for the third quarter of 1997 represents a 28.7%
increase from sales of $22,972 from continuing operations for the same period
in 1996. The third quarter sales growth included an increase of sales to
existing clients of approximately 13.9% with the remaining growth of 14.8%
resulting from the 1996 acquisitions in Canada, Atlanta and Connecticut. Net
sales for the first nine months of 1997 also increased 33.3% to $85,157 from
$63,881 in 1996, with growth of approximately 12.4% from existing customers
and 20.9% from acquisitions. The Company has acquired several new customers
during 1997 and has experienced additional revenues from its preexisting
client base.
COST OF SALES for the third quarter of 1997 decreased to 55.9% from
56.8% of net sales in the third quarter of 1996, and decreased to 56.2% from
57.0% for the nine month period ended September 30, 1997 due to greater
operating efficiencies on increased volume.
OPERATING INCOME increased 35.5% to $5,173 in the third quarter
of 1997 from operating income from continuing operations of $3,818 in the
third quarter of 1996. This increase was due largely to the increased sales
volume and operating efficiencies. Selling, general and administrative
expenses increased by $1,763 for the third quarter but remained level as a
percentage of sales. For the first nine months of 1997 operating income
increased 44.6% to $13,777 due to increased sales volume and operating
efficiencies. Although selling, general and administrative expenses increased
$5,574 for the nine month period, they decreased as a percentage of sales
from 28.1% in 1996 to 27.6% in 1997.
INTEREST INCOME increased to $843 for the third quarter of 1997 compared with
$95 for the third quarter of 1996 due to the invested balances on hand as a
result of the sale of the Plastics Group. Interest expense for the third quarter
decreased to $918 in 1997 from $1,173 in 1996 as the Company retired debt with
the proceeds of the sale. For the nine month period the Company also experienced
an increase in interest income to $2,149 in 1997 from $326 in 1996 due to the
increase in invested balances. Additionally, interest expense decreased for the
first nine months of 1997 to $2,791 from $3,299 in 1996 as a result of the
repayment of debt with proceeds of the sale of the Plastics Group.
OTHER INCOME for the third quarter of 1997 of $422 is primarily the gain on the
sale of investments as the Company liquidated a portion of its equity portfolio
and reinvested in bond funds.
INCOME FROM CONTINUING OPERATIONS increased 101.5% to $3,312 for the
third quarter of 1997 compared with $1,644 in 1996 and increased 97.8% to
$8,219 from the first nine months of 1997 versus $4,155 for the first nine
months of 1996 due to increased sales volume, greater operating efficiencies,
and the application of the proceeds from the sale of the Plastics Group.
NET INCOME increased to $3,312 in the third quarter of 1997 from $2,221 in the
third quarter of 1996, which included $577 of income from the discontinued
Plastics Group and increased to $8,219 for the first nine months of 1997 from
$6,021 for the nine months of 1996, which included $1,866 of income from the
Plastics Group.
PRIMARY AND FULLY DILUTED EARNINGS PER SHARE FROM CONTINUING
OPERATIONS increased 114.3% to $0.15 for the third quarter of 1997 from $0.07
for the third quarter of 1996. Primary and fully diluted earnings per share of
$0.10 for the third quarter of 1996 included $0.03 from the discontinued
Plastics Group. Weighted average shares outstanding increased to 19,904 in
1997 from weighted average shares outstanding of 19,607 in 1996 due primarily
to the Company's conversion of Series A preferred stock into Class A commons
shares during 1996, stock issued in connection with acquisitions during the
second half of 1996, issuance of Class A common shares under the Company's
dividend reinvestment plan, offset by the Company's purchase of outstanding
shares. Primary and fully diluted earnings per share from continuing
operations increased 117.6% to
9
<PAGE> 10
$0.37 for the first nine months of 1997 from $0.17 for the first nine months of
1996. Primary and fully diluted earnings per share of $0.26 for the first nine
months of 1996 included $0.09 from the discontinued Plastics Group. Weighted
average shares outstanding increased to 19,879 for the first nine months of 1997
from 19,463 for the first nine months of 1996 for the reasons previously
described.
LIQUIDITY AND CAPITAL RESOURCES
Long-term debt and capital lease obligations decreased to $44,963 as of
September 30, 1997 from $67,785 as of December 31, 1996 as the Company repaid
debt with the proceeds from the sale of the Plastics Group. The Company had
$20,845 of available cash and short term investments at September 30, 1997. The
Company's current ratio at September 30, 1997 was 2.0 with available working
capital of $25,379 compared to a current ratio on December 31, 1996 of 1.6 with
available working capital of $21,881.
The Company believes that the current level of working capital and the cash
generated from future operations will be sufficient to meet its needs for
working capital and capital expenditures.
Capital expenditures of $5,458 were made during the first nine months of 1997
for machinery, equipment and automation to expand production facilities and
improve productivity.
The Company held invested balances of $52,321 at September 30, 1997
representing proceeds of the sale of the Plastics Group in bond mutual funds,
equity mutual funds, U.S. Treasury and U.S. Government notes, corporate Bonds
and equity securities. These funds are available for sale to provide for
acquisitions and general Corporate requirements. Unrealized appreciation
on these investments of $2,597 ($1,558 net of tax effects) at September 30,
1997 has been excluded from earnings in the Company's statement of
operations, and has been included as a separate component of stockholders'
equity.
DISCLOSURE REGARDING FORWARD LOOKING STATEMENTS
Any statements contained herein regarding the Company's expectations for future
industry trends, future revenue or its growth strategy constitute "forward
looking statements" within the meaning of 21E of the Securities Exchange Act of
1934, as amended, and are subject to the safe harbor created thereby. Although
the Company believes that the expectations reflected in any such forward looking
statements are reasonable, it can give no assurance that such expectations will
prove to be correct. Important factors that could cause actual results to differ
materially from the Company's expectations include without limitation, changes
in industry trends, conditions in the economy of the United States or Canada or
the Company's markets, and the ability of the Company to implement its growth
strategy through acquisitions, start-up-operations or otherwise. No assurance
can be given that the forward looking statements will prove to be accurate.
10
<PAGE> 11
PART II - OTHER INFORMATION
Items 1, 2, 3, 4 and 5 are not applicable and have been omitted.
Item 14. Exhibits and Reports on Form 8-K
(A) Exhibits
Exhibit 11 - Calculation of net income per common share.
(B) Reports on Form 8-K
Form 8-K dated July 8, 1997.
(C) Exhibit 27 - Financial Data Schedule
11
<PAGE> 12
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities indicated on the 27th day of October, 1997.
SCHAWK, INC.
- ------------
(Registrant)
/s/ David A. Schawk
- ------------------------
President, Chief Executive Officer and Director
/s/ Dennis D. Wilson
- ------------------------
Director of Financial Reporting and Chief Accounting Officer
12
<PAGE> 1
EXHIBIT 11
Schawk, Inc.
Computation of Net Income Per Common and Common Equivalent Shares
(In thousands, except per share data)
<TABLE>
<CAPTION>
Three months ended September 30
1997 1996
---- ----
<S> <C> <C>
Primary:
Average number of shares used to compute primary
earnings per share .................... 19,822 19,543
Common stock issuable upon assumed conversion of
stock option exercises ................ 82 64
------- -------
Total .......................................... 19,904 19,607
======= =======
Net income available for Class A common shares:
Net income ..................................... $ 3,312 $ 2,221
Less preferred dividends ....................... 285 313
------- -------
Net income available for Class A common
shares................................. $ 3,027 $ 1,908
======= =======
Primary earnings per share ..................... $ 0.15 $ 0.10
Fully diluted:
Average number of shares used to compute fully
diluted earnings per share ............ 19,822 19,543
Common stock issuable upon assumed conversion
of stock option exercises ............ 82 64
------- -------
19,904 19,607
======= =======
Net income available for Class A common shares:
Net income ................................ $ 3,312 $ 2,221
Less preferred dividends .................. 285 313
------- -------
Net income available for Class A common
shares................................. 3,027 $ 1,908
======= =======
Fully diluted earnings per share ............... $ 0.15 $ 0.10
</TABLE>
<PAGE> 2
<TABLE>
<CAPTION>
Nine months ended September 30
1997 1996
---- ----
<S> <C> <C>
Primary:
Average number of shares used to compute primary
earnings per share .................... 19,834 19,377
Common stock issuable upon assumed conversion of
stock option exercises ................ 45 86
------- -------
Total .......................................... 19,879 19,463
======= =======
Net income available for Class A common shares:
Net income ..................................... $ 8,219 $ 6,021
Less preferred dividends ....................... 855 939
------- -------
Net income available for Class A common
shares..................................... $ 7,364 $ 5,082
======= =======
Primary earnings per share ..................... $ 0.37 $ 0.26
Fully diluted:
Average number of shares used to compute fully
diluted earnings per share ............ 19,834 19,377
Common stock issuable upon assumed conversion
of stock option exercises ............ 45 86
------- -------
19,879 19,463
======= =======
Net income available for Class A common shares:
Net income ................................ $ 8,219 $ 6,021
Less preferred dividends .................. 855 939
------- -------
Net income available for Class A common
shares..................................... $ 7,364 $ 5,082
======= =======
Fully diluted earnings per share ............... $ 0.37 $ 0.26
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1997
<PERIOD-END> SEP-30-1997 SEP-30-1997
<CASH> 1,878 1,878
<SECURITIES> 18,967 18,967
<RECEIVABLES> 22,610 22,610
<ALLOWANCES> 598 598
<INVENTORY> 5,287 5,287
<CURRENT-ASSETS> 51,076 51,076
<PP&E> 71,853 71,853
<DEPRECIATION> 44,058 44,058
<TOTAL-ASSETS> 129,551 129,551
<CURRENT-LIABILITIES> 25,697 25,697
<BONDS> 44,963 44,963
0 0
0 0
<COMMON> 159 159
<OTHER-SE> 53,244 53,244
<TOTAL-LIABILITY-AND-EQUITY> 129,551 129,551
<SALES> 29,568 85,157
<TOTAL-REVENUES> 29,568 85,157
<CGS> 16,523 47,853
<TOTAL-COSTS> 16,523 47,853
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 918 2,149
<INCOME-PRETAX> 5,520 13,698
<INCOME-TAX> 2,208 5,479
<INCOME-CONTINUING> 3,312 8,219
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 3,312 8,219
<EPS-PRIMARY> 0.15 0.37
<EPS-DILUTED> 0.15 0.37
</TABLE>
