<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 for the quarterly period ended
March 31, 1996.
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 for the transition period from
__________ to _________
Commission File Number: 0-12697
Dynatronics Corporation
-----------------------------------------
(Exact name of registrant as specified in its charter)
Utah 87-0398434
- ------------------------------ ------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
7030 Park Centre Drive, Salt Lake City, UT 84121
- ------------------------------------------ ----------
(Address of principal executive offices) (ZIP Code)
(801) 568-7000
---------------------------------------------------
(Registrant's telephone number, including area code)
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.
X Yes No
----- -----
The number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date is:
Class Outstanding at March 31, 1996
- -------------------------- -----------------------------
Common Stock, No Par Value 7,984,747 shares
<PAGE>
DYNATRONICS CORPORATION
TABLE OF CONTENTS
Page Number
-----------
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Balance Sheets
March 31, 1996, and June 30, 1995 1
Condensed Statements of Income
Three and Nine Months Ended March 31, 1996,
and March 31, 1995 2
Condensed Statement of Stockholders' Equity
Nine Months Ended March 31, 1996 3
Condensed Statements of Cash Flows
Nine Months Ended March 31, 1996,
and March 31, 1995 4
Notes to Condensed Financial Statements 5
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of Operations 8
Part II. OTHER INFORMATION 12
<PAGE>
DYNATRONICS CORPORATION
Condensed Balance Sheets
<TABLE>
<CAPTION>
March 31 June 30
ASSETS 1996 1995
---------- ----------
<S> <C> <C>
Current assets:
Cash and cash equivalents $1,137,075 779,054
Trade accounts receivable, less allowance for doubtful
accounts of $61,271 in March and $50,729 in June 1,360,911 941,017
Income tax refund receivable 0 19,095
Related party and other receivables 12,369 236,021
Inventories (note 3) 1,476,752 1,767,030
Prepaid expenses 49,866 48,300
Deferred tax asset-current 135,310 53,006
---------- ----------
Total current assets 4,172,283 3,843,523
Net property and equipment (note 4) 2,568,682 2,663,171
Excess of cost over book value of minority interest
acquired, net of accumulated amortization of
$111,932 in March and $105,348 in June 151,430 158,014
Deferred tax asset-noncurrent 196,415 178,123
Other assets 423,948 344,497
---------- ----------
$7,512,758 7,187,328
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current installments of long-term debt $ 107,153 101,345
Current installments of capital lease obligations 25,499 44,742
Accounts payable 121,656 131,138
Accrued expenses 333,290 247,026
Income taxes payable 40,966 0
---------- ----------
Total current liabilities 628,564 524,251
<PAGE>
Long-term debt, excluding current installments 2,005,331 2,086,438
Capital lease obligations, excluding current installments 6,748 22,671
Deferred compensation 347,700 290,262
---------- ----------
Total long-term liabilities, excluding
current installments 2,359,779 2,399,371
---------- ----------
Total liabilities 2,988,343 2,923,622
Stockholders' equity:
Common stock, no par value. Authorized 50,000,000
shares; issued and outstanding 7,984,747 shares in
March and 7,943,897 in June 1,695,204 1,653,818
Retained earnings 2,829,211 2,609,888
---------- ----------
Total stockholders' equity 4,524,415 4,263,706
---------- ----------
$7,512,758 7,187,328
========== ==========
</TABLE>
See accompanying notes to condensed financial statements.
1
<PAGE>
DYNATRONICS CORPORATION
Condensed Statements Of Income
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
March 31 March 31
1996 1995 1996 1995
---------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
Net sales $ 1,633,092 1,402,662 4,958,410 4,651,592
Cost of sales 872,606 811,154 2,638,708 2,649,847
------------- ----------- ----------- -----------
Gross profit 760,486 591,508 2,319,702 2,001,745
Selling, general, and administrative expenses 488,077 404,210 1,454,019 1,309,957
Research and development expenses 133,504 123,920 426,515 432,919
------------- ----------- ----------- -----------
Operating income (loss) 138,905 63,378 439,168 258,869
Other income (expense):
Interest income 11,308 3,644 29,111 10,793
Interest expense (38,290) (40,695) (116,949) (124,574)
Other income, net 38,595 36,364 125,864 138,232
Write-off of ITEC note receivable 0 0 (228,824) 0
------------- ----------- ----------- -----------
Total other income (expense) 11,613 (687) (190,798) 24,451
Income before income taxes 150,518 62,691 248,370 283,320
Income tax expense (benefit) 61,443 42,399 29,047 125,564
------------- ----------- ----------- -----------
Net income $ 89,075 20,292 219,323 157,756
============= =========== =========== ===========
<PAGE>
Net income per common share and common
share equivalents (note 2): $ 0.01 0.00 0.03 0.02
============= =========== =========== ===========
Weighted average number of common shares
and common share equivalents outstanding 7,984,121 7,934,008 7,964,438 7,923,810
</TABLE>
See accompanying notes to condensed financial statements.
2
<PAGE>
DYNATRONICS CORPORATION
Condensed Statement of Stockholders' Equity
Nine Months ended March 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
Total
Common Retained stockholders'
stock earnings equity
----------- ------------- -------------
<S> <C> <C> <C>
Balances at June 30, 1995 $ 1,653,818 2,609,888 4,263,706
Issuance of 40,850 shares of common stock
upon exercise of employee stock options 35,744 - 35,744
Income tax benefit from nonemployee
exercise of stock options 5,642 - 5,642
Net income - 219,323 219,323
-------------- ------------ -------------
Balances at March 31, 1996 $ 1,695,204 2,829,211 4,524,415
============== ============ =============
</TABLE>
See accompanying notes to condensed financial statements.
3
<PAGE>
DYNATRONICS CORPORATION
Condensed Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
March 31,
1996 1995
--------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 219,323 157,756
Adjustments to reconcile net income to net cash provided
by (used in) operating activities:
Depreciation and amortization of property and equipment 129,601 141,991
Other amortization 6,584 6,584
Provision for doubtful accounts 9,000 9,000
Provision for inventory obsolescence 72,000 72,000
Provision for warranty reserve 82,832 110,932
Decrease (increase) in deferred tax assets (100,596) 73,958
Decrease (increase) in operating assets:
Receivables (205,242) (703,078)
Inventories 218,278 (104,015)
Prepaid expenses and other assets (81,017) (71,238)
Increase (decrease) in operating liabilities:
Trade accounts payable and accrued expenses (6,050) (265,012)
Deferred compensation 57,438 54,945
Income taxes payable 65,703 86,356
----------- -----------
Net cash provided by (used in) operating activities 467,854 (429,821)
----------- -----------
Cash flows from investing activities:
Capital (expenditures) source (35,112) (27,650)
----------- -----------
Net cash provided by (used in) investing activities (35,112) (27,650)
----------- -----------
Cash flows from financing activities:
Principal payments under capital lease obligations (35,166) (51,285)
Principal payments on long-term debt (75,299) (69,910)
Proceeds from sale of common stock 35,744 23,572
----------- -----------
Net cash provided by (used in) financing activities (74,721) (97,623)
----------- -----------
Net increase (decrease) in cash and cash equivalents 358,021 (555,094)
Cash and cash equivalents at beginning of period 779,054 871,008
----------- -----------
Cash and cash equivalents at end of period $ 1,137,075 315,914
============= ===========
Supplemental cash flow information
Cash paid for interest (net of amounts capitalized) 116,949 124,574
Cash paid for income taxes 88,900 250
Supplemental disclosure of non-cash investing
and financing activities
Long-term debt incurred for fixed assets 0 0
Capital lease obligations incurred for property and equipment 0 19,990
</TABLE>
See accompanying notes to condensed financial statements.
4
<PAGE>
DYNATRONICS CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
March 31, 1996
(Unaudited)
NOTE 1. PRESENTATION
The financial statements as of March 31, 1996 and for the nine
months then ended were prepared by the Company without audit
pursuant to the rules and regulations of the Securities and
Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared
in accordance with generally accepted accounting principles
have been condensed or omitted pursuant to such rules and
regulations. In the opinion of management, all necessary
adjustments to the financial statements have been made to
present fairly the financial position and results of
operations and cash flows. All adjustments were of a normal
recurring nature. The results of operations for the
respective periods presented are not necessarily indicative of
the results for the respective complete years. The Company
has previously filed with the SEC Annual Reports on Form 10-K
under the name of Dynatronics Corporation and/or Dynatronics
Laser Corporation which included audited financial statements
for the three years ending June 30, 1995, 1994, and 1993. It
is suggested that the financial statements contained in this
filing be read in conjunction with the statements and notes
thereto contained in the Company's 10-K filing.
NOTE 2. EARNINGS PER SHARE
Earnings per common share and common share equivalents are
computed by dividing net income by the weighted average number
of shares of common stock and common stock equivalents
outstanding during the period. Common stock equivalents
include shares issuable upon exercise of the Company's stock
options.
NOTE 3. INVENTORIES
Inventories consisted of the following:
March 31 June 30
1996 1995
------------ ------------
Raw Materials $1,142,735 $1,201,587
Finished Goods 404,930 611,207
Inventory Reserve (70,913) (45,764)
---------- ----------
$1,476,752 $1,767,030
========== ==========
<PAGE>
NOTE 4. PROPERTY AND EQUIPMENT
Property and equipment were as follows:
March 31 June 30
1996 1995
-------- --------
Land $ 589,920 589,920
Building 1,935,297 1,935,297
Machinery and equipment, and
equipment under capital lease 741,588 706,475
---------- ----------
3,266,805 3,231,692
Less accumulated depreciation
and amortization 698,123 568,521
---------- ----------
$2,568,682 2,663,171
========== ==========
NOTE 5. STOCK OPTIONS GRANTED
At the November 28, 1995 Annual Shareholders Meeting, the
shareholders approved the Company's 1995 amended and restated
stock option plan authorizing an additional 500,000 options to
purchase common stock of the Company. A total of 1,000,000
options are authorized under the plan. During the quarter
ended March 1996, the Company granted 166,026 options to
employees, officers and directors of the Company with an
exercise price of $1.08 which are exercisable after a minimum
of one year according to a vesting plan and expire from five
to seven years from date of grant. During 1994, 448,895 options
under the 1992 plan were granted to employees, officers and
directors of the Company with an exercise price of $0.875 which
became exercisable after August 19, 1994 and expire five years
from date of grant. As of March 31, 1996, 67,790 of the above
options had been exercised. In 1994, the Board of Directors
granted options to a non-employee, of which 150,075 options
remain outstanding and are exercisable at a price of $0.875
per share.
NOTE 6. GUARANTEE OF PROMISSORY NOTE
In fiscal 1995 the board of directors voted to approve the
guarantee of a $500,000 bank loan to ITEC Attractions, an
affiliate of the Company. At March 31, 1996 the loan and the
loan guarantee remained outstanding. On January 25, 1996,
ITEC filed for Chapter 11 bankruptcy. Under the provisions of
ITEC's proposed plan of reorganization, including a purchase
agreement from an outside party, proceeds to Dynatronics from
the bankruptcy were anticipated to be sufficient to repay the
loan. The purchase offer was later withdrawn. Subsequent to
March 31, 1996, Dynatronics performed on its guarantee by
paying to the commercial bank $491,279, which represents
the total obligation under
<PAGE>
the guarantee including principal, interest and bank charges.
The Company now holds the bank's note as an additional
receivable from ITEC for the above amount, the collectability
of which is uncertain. ITEC is currently formulating a new
plan of reorganization. Dynatronics' ability to recover from
ITEC on the note will be dependent upon the efficacy and terms
of the new plan. The Company expects to have sufficient
information to record the uncollectible amount and make a
final disposition of this matter in the fourth quarter.
NOTE 7. OTHER RECEIVABLES
Included in the $236,021 of related party and other
receivables at June 30, 1995 is $228,824 due from ITEC
Attractions related to unpaid amounts under services
agreement, loan guarantee fee, and other miscellaneous
expenses. Due to ITEC's Chapter 11 bankruptcy filing on
January 25, 1996 this $228,824 note receivable was written off
as of December 31, 1995 because the bankruptcy proceeds
payable to Dynatronics under the provisions of ITEC's plan of
reorganization, as originally filed, were not expected to be
sufficient to pay this debt.
NOTE 8. ASSET ACQUISITION
On May 1, 1996, the Company acquired the assets of Superior
Orthopaedic Supplies for approximately $1,750,000 which was
financed with cash of approximately $700,000, approximately
$200,000 in assumed liabilities, Company common stock of
440,000 shares, and a promissory note for $550,000 amortized
over 10 years at 7 percent interest with a balloon payment due
at the end of three years. The company also paid an estimated
$100,000 in acquisition related costs.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Results of Operations
- ---------------------
Sales for the quarter ended March 31, 1996 increased 16
percent to $1,633,092 as compared to $1,402,662 in the same
quarter last year. Sales for the nine month period increased
6.6 percent to $4,958,410 as compared to $4,651,592 in the
prior year period. These increases are due primarily to the
new "50 Series" product line which has received strong market
acceptance. The "50 Series" products incorporate technology
that significantly lowers the cost of manufacturing as well as
significantly reducing the physical dimensions of the devices
when compared to their predecessor devices.
Gross Margins as a percentage of sales increased to 46.6
percent during the reporting quarter as compared to 42.2
percent in the prior year period. This increase is also due
to the new "50 Series" products, which carry higher margins
than the Company's previous products.
Selling, General and Administrative (SG&A) expenses for the
reporting period increased $83,867 as compared to the same
quarter last year while SG&A expenses for the nine month
period increased $144,062 over the prior year period. This
increase is primarily related to higher labor expenses.
Research and development expenses in the reporting quarter
increased 7.7 percent compared to the prior year period while
expenses for the nine month period remained comparable to
expenses in the same period last year. The Company continues
its commitment to supplying technologically advanced devices
that will maintain its competitive edge in the future. The
increase in research and development expenses for the quarter
is related to development of new products slated for
introduction in fiscal 1997.
Operating income for the reporting quarter totalled $138,905
as compared to $63,378 for the same quarter last year. This
119 percent increase is due to the higher margins associated
with the new "50 Series" products and the 16 percent increase
in sales volume for the quarter. These same factors are
responsible for the 70 percent increase in operating profits
for the nine month period ended March 31, 1996 compared to the
same nine month period last year.
For the quarter ended December 31, 1995, the Company recorded
a write off of $228,824 related to a note receivable due from<PAGE>
<PAGE>
ITEC Attractions. ITEC, an affiliate of the Company, filed a
voluntary petition under Chapter 11 of the Federal Bankruptcy
Code on January 25, 1996. Based on the plan of reorganization
filed by ITEC in January, the Company did not expect
bankruptcy proceeds to be sufficient to pay the note
receivable owed to Dynatronics. Therefore, the Company wrote
off the receivable in the second quarter.
In prior years, the Company had, for purposes of financial
reporting, written off the value of its original investment in
ITEC. However, there remained a tax basis in the stock.
Since, according to the filed plan of reorganization by ITEC,
the stock has become worthless, the Company was able to
recognize a tax benefit in the second quarter associated with
the write off of the Company's tax basis in the ITEC stock.
The net after-tax effect of all aspects of the ITEC bankruptcy
as reflected in the financial statements of the second quarter
was to reduce net earnings by approximately $68,000.
Income before tax for the reporting quarter, increased 140
percent to $150,518 as compared to $62,691 during the same
quarter of the prior year. Income before tax for the nine
month period decreased to $248,370 as compared to $283,320 in
the prior year period primarily due to the ITEC write off
discussed above. Exclusive of the ITEC write off, income
before tax for the nine month period ended March 31, 1995, was
$477,194, a 68 percent improvement over the same period last
year.
Net income for the reporting quarter increased to $89,075 as
compared to $20,292 for the same quarter in the prior year.
Net income for the nine month period increased to $219,323 as
compared to $157,756 in the prior year period based on the
improved sales together with the higher margins associated
with the "50 Series" products. Exclusive of the effects of
the ITEC transactions recorded in the second quarter, net
income would have risen to approximately $287,000 for the nine
month period ended March 31, 1996, an increase of 82 percent
over the previous year's earnings of $157,756.
During the reporting quarter, the Company announced its intent
to acquire the assets of Superior Orthopaedic Supplies, a
manufacturer of medical supplies and disposable products for
the physical medicine market. The acquisition became
effective on May 1, 1996. With the addition of Superior's
products to the Company's existing line of capital equipment,
Dynatronics has become a single-source supplier for the
physical medicine market which management anticipates will
lead to greater market penetration both domestically and
internationally. Superior reported 1995 sales of $2,137,000.
<PAGE>
The addition of Superior sales should increase Company sales by
about 33 percent in fiscal 1997.
Liquidity and Capital Resources
- -------------------------------
The Company expects that revenues from operations, together
with available sources of borrowing, will be adequate to meet
its working capital needs related to its business and its
planned capital expenditures for the upcoming operating
period.
The Company continues to maintain a liquid position. The
current ratio at March 31, 1996 was 6.6 to 1 as compared to
7.3 to 1 at June 30, 1995. Current assets represent 56% of
total assets.
Trade accounts receivable are from the Company's dealer
network and are generally considered to be within term. All
accounts payable are within term with the Company continuing
its policy of taking advantage of any and all payment
discounts available.
The Company maintains a revolving line of credit in the amount
of $1,000,000 with a commercial bank. No amounts were
outstanding on this line of credit at March 31, 1996. However,
on April 30, 1996, the Company was required to repay the ITEC
loan it had guaranteed with a commercial bank plus interest
and fees in the amount of $491,279. This loan was paid off
using the Company's revolving line of credit facility and
existing cash balances.
Inventory levels decreased by $290,278 to $1,476,752 at March
31, 1996, as compared to $1,767,030 at June 30, 1995 due to
the increase in sales during the reporting quarter.
Another direct effect of the sales increase is evidenced by
the higher Accounts Receivable of $1,360,911 at March 31, 1996
compared to $941,017 at June 30, 1995. At the same time, cash
balances increased to $1,137,075 at March 31, 1996 as compared
to $779,054 at June 30, 1995 due to increased profits and
positive cash flow from operations.
Long-term debt and capital lease obligations excluding current
installments at March 31, 1996 totalled $2,012,079, comprised
primarily of the mortgage loan on the Company's office and
manufacturing facility.
On May 1, 1996, the Company acquired the assets of Superior
Orthopaedic Supplies for approximately $1.75 million which was
financed through a combination of cash, Company stock, assumed
<PAGE>
liabilities, and notes. At closing the Company paid to the
sellers approximately $700,000 in cash and in addition paid
an estimated $100,000 in fees and expenses related to the
acquisition.
Business Plan
- -------------
The Company developed the new "50 Series" product line to
address the specific market need for lower cost, high value
products while at the same time restoring more profitable
gross margins. The first in this series, the Dynatron 150
Ultrasound device, was introduced in February, 1994. The next
two devices, the Dynatron 550 and Dynatron 850 were introduced
in August, 1994. The new Dynatron 650 and Dynatron 950
introduced in the second quarter of the current fiscal year
complete the "50 Series" product line. The "50 Series"
devices are the primary reason for the strong increases in the
Company's sales and operating profits over the past two years.
As expected, the "50 Series" is a particularly attractive
product line in the international market. Due to its low
price and compact size, the Company has received inquiries
from around the world to purchase these devices. While
international markets are slower to cultivate and develop, the
Company feels it can expand its international presence
significantly with the "50 Series". In May, 1995, the Company
announced the signing of an agreement with a major Japanese
distributor of medical devices. While the Company has
experienced difficulty in securing the necessary government
approvals to commence exporting to Japan, efforts continue and
management expects to begin shipment of product before the end
of the 1996 calendar year. To boost sales efforts
internationally, the Company hired an experienced manager of
international sales at the end of the second quarter. During
the reporting quarter, international sales outside of North
America have been the highest in the Company's history.
With the recent acquisition of Superior Orthopaedic Supplies,
the Company plans to expand distribution of Superior's product
line of soft goods and disposable products through
Dynatronics' dealer network. Offering a broad product line is
of strategic importance as clinics continue to consolidate and
develop centralized purchasing which favors single source
suppliers for their medical device and supplies needs.
The Company recognizes the need to continually upgrade and re-
engineer existing products as well as introduce new products.
The ongoing effort to accomplish these objectives is reflected
<PAGE>
in the Research and Development expenditures which are running
at approximately eight percent of sales for nine months ended
March 31, 1996. As a result, the Company anticipates being
able to reduce costs of manufacturing without sacrificing
value or features. The continuing commitment to Research and
Development enables Dynatronics to be a technological leader
in the market. The quest to improve the product line is a
never ending project. New products and engineering
improvements are being constantly evaluated and developed.
The Company anticipates introducing two new product lines in
fiscal 1997.
The Company's marketing strategy includes the development of
niche markets, increased emphasis on international sales, lead
generation through direct marketing efforts as well as the
introduction of new products. The emphasis on introducing new
products specifically designed to lower costs of production
while providing leading-edge technology at competitive prices
has positioned the Company well for the future.
Another avenue to increase sales and profits being pursued by
management is that of strategic business alliances, mergers or
acquisitions such as the Superior Orthopaedics acquisition
discussed above. The Company continues to evaluate additional
acquisition opportunities which could enhance and broaden the
Company's product line.
The Company does continue to support research into areas of
potential efficacy of its low-power laser device. Should any
such research provide evidence deemed sufficient for
submission to the U.S. Food and Drug Administration, the
Company would give consideration to submitting a Pre-Market
Approval Application for the laser to the FDA.
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
-----------------
There are no material legal proceedings pending to
which the Company or any of its subsidiaries is a
party or of which any of their property is the
subject which require disclosure in this statement.
Item 2. Changes in Securities
---------------------
Not applicable.
Item 3. Defaults Upon Senior Securities
-------------------------------
Not applicable.
Item 4. Submission of Matters to a Vote of Security Holders
---------------------------------------------------
Not applicable.
Item 5. Other Information
-----------------
Not applicable.
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
A) Not applicable.
B) Not applicable.
<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.
DYNATRONICS CORPORATION
-------------------------
Registrant
Date 5/14/96 /s/ Kelvyn H. Cullimore, Jr.
-------------------- ------------------------------
Kelvyn H. Cullimore, Jr.
President
Chief Executive Officer
Date 5/14/96 /s/ Keith E. Turner
-------------------- ------------------------------
Keith E. Turner
Treasurer
Chief Accounting Officer and
Principal Financial Officer
<PAGE>
[ARTICLE] 5
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
BALANCE SHEET AND STATEMENT OF INCOME 3/31/96 AND IS QUALIFIED IN
ITS ENTIRETY BY SUCH FINANCIAL STATEMENTS.
<TABLE>
<S> <C>
[PERIOD-TYPE] 9-MOS
[FISCAL-YEAR-END] JUN-30-1996
[PERIOD-START] JUL-01-1995
[PERIOD-END] MAR-31-1996
[CASH] 1,137,075
[SECURITIES] 0
[RECEIVABLES] 1,422,182
[ALLOWANCES] 61,271
[INVENTORY] 1,476,752
[CURRENT-ASSETS] 4,172,283
[PP&E] 3,266,805
[DEPRECIATION] 698,123
[TOTAL-ASSETS] 7,512,758
[CURRENT-LIABILITIES] 628,564
[BONDS] 2,012,079
[COMMON] 1,695,204
[PREFERRED-MANDATORY] 0
[PREFERRED] 0
[OTHER-SE] 2,829,211
[TOTAL-LIABILITY-AND-EQUITY] 7,512,758
[SALES] 4,958,410
[TOTAL-REVENUES] 4,958,410
[CGS] 2,638,708
[TOTAL-COSTS] 2,638,708
[OTHER-EXPENSES] 0
[LOSS-PROVISION] 10,542
[INTEREST-EXPENSE] 116,949
[INCOME-PRETAX] 248,370
[INCOME-TAX] 29,047
[INCOME-CONTINUING] 219,323
[DISCONTINUED] 0
[EXTRAORDINARY] 0
[CHANGES] 0
[NET-INCOME] 219,323
[EPS-PRIMARY] .028
[EPS-DILUTED] .028
</TABLE>
