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 30, 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 1-8634
Temple-Inland Inc.
(Exact name of registrant as specified in its charter)
Delaware 75-1903917
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
303 South Temple Drive, Diboll, Texas 75941
(Address of principal executive offices) (Zip Code)
(409) 829-2211
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year,
if changed since last report.)
Indicate 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 the 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 the latest practicable date:
Number of common shares outstanding
Class as of March 30, 1996
Common Stock (par
value $1.00 per share) 55,562,415
The Exhibit Index appears on page 19 of this report.
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<PAGE>2
PART I. FINANCIAL INFORMATION
FINANCIAL STATEMENTS
Summarized Statements of Income
Parent Company (Temple-Inland Inc.)
Unaudited
First Quarter
1996 1995
(in millions)
Revenues
Net sales $ 661.6 $ 660.8
Financial services earnings 24.7 14.2
686.3 675.0
Costs and Expenses
Cost of sales 525.9 510.1
Selling and administrative 62.5 59.6
588.4 569.7
Operating Income 97.9 105.3
Interest - net (26.7) (16.6)
Other .2 1.0
Income Before Taxes 71.4 89.7
Taxes on income 25.0 31.4
Net Income $ 46.4 $ 58.3
See notes to consolidated financial statements.
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<PAGE>3
Summarized Balance Sheets
Parent Company (Temple-Inland Inc.)
Unaudited
March 30, December 30,
1996 1995
(in millions)
ASSETS
Current Assets
Cash $ 15 $ 15
Receivables, less allowances of
$9 million in 1996 and $8
million in 1995 304 285
Inventories:
Work in process and finished goods 105 99
Raw materials 252 239
357 338
Prepaid expenses 18 15
Total current assets 694 653
Investment in Financial Services 614 605
Property and Equipment
Buildings 486 469
Machinery and equipment 3,435 3,323
Less allowances for depreciation and
amortization (1,754) (1,702)
2,167 2,090
Construction in progress 157 225
2,324 2,315
Timber and timberlands--less depletion 453 445
Land 29 28
Total property and equipment 2,806 2,788
Other Assets 156 167
Total Assets $ 4,270 $ 4,213
See notes to consolidated financial statements.
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<PAGE>4
Summarized Balance Sheets - Continued
Parent Company (Temple-Inland Inc.)
Unaudited
March 30, December 30,
1996 1995
(in millions)
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 140 $ 138
Accrued expenses 140 157
Employee compensation and benefits 15 37
Current portion of long-term debt 3 5
Total current liabilities 298 337
Long-Term Debt 1,558 1,489
Deferred Income Taxes 257 259
Postretirement Benefits 134 132
Other Liabilities 30 21
Shareholders Equity 1,993 1,975
Total Liabilities and Shareholders Equity $ 4,270 $ 4,213
See notes to consolidated financial statements.
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<PAGE>5
Summarized Statements of Cash Flows
Parent Company (Temple-Inland Inc.)
Unaudited
First Quarter
1996 1995
(in millions)
Cash Provided by (Used for) Operations
Net income $ 46.4 $ 58.3
Adjustments to reconcile net income to net cash:
Depreciation and depletion 60.8 51.8
Deferred taxes (1.3) 10.8
Unremitted earnings of affiliates (15.0) (8.5)
Receivables (19.6) (41.5)
Inventories (11.0) (28.2)
Prepaid expenses - 3.9
Accounts payable and accrued expenses (40.2) (1.1)
Other 5.7 (11.4)
25.8 34.1
Cash Provided by (Used for) Investments
Capital expenditures (55.5) (79.6)
Other (2.5) 4.5
(58.0) (75.1)
Cash Provided by (Used for) Financing
Change in debt, net 55.9 52.3
Purchase of stock for treasury (7.1) (.2)
Cash dividends paid to shareholders (16.6) (15.1)
Other .3 .4
32.5 37.4
Effect of exchange rate changes on cash and
cash equivalents - .3
Net (decrease) in cash and
cash equivalents .3 (3.3)
Cash and cash equivalents at beginning
of period 14.7 13.0
Cash and cash equivalents at end of period $ 15.0 $ 9.7
See notes to consolidated financial statements.
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<PAGE>6
Summarized Statements of Income
Temple-Inland Financial Services
Unaudited
First Quarter
1996 1995
(in millions)
Interest income
Mortgage-backed and investment securities $ 49.7 $ 50.6
Loans receivable and mortgage loans held
for sale 101.8 80.8
Assisted assets - 6.1
Other earning assets 5.7 5.5
Total interest income 157.2 143.0
Interest expense
Deposits 78.4 73.9
Borrowed funds 29.5 29.1
Total interest expense 107.9 103.0
Net interest income 49.3 40.0
Provision for loan losses 6.2 5.3
Net interest income after provision for
loan losses 43.1 34.7
Noninterest income
Loan servicing fees 13.7 9.8
Loan origination and marketing 6.6 1.2
Other 20.8 19.9
41.1 30.9
Noninterest expense
Compensation and benefits 25.2 22.1
Other 34.3 29.3
Total noninterest expense 59.5 51.4
Income before taxes 24.7 14.2
Taxes on income 9.7 5.7
Net Income $ 15.0 $ 8.5
See notes to consolidated financial statements.
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<PAGE>7
Summarized Balance Sheets
Temple-Inland Financial Services
Unaudited
March 31, December 31,
1996 1995
(in millions)
ASSETS
Cash and cash equivalents $ 295 $ 343
Mortgage loans held for sale 232 106
Loans receivable 4,952 4,764
Mortgage-backed and investment
securities 3,316 3,424
Other assets 613 574
TOTAL ASSETS $ 9,408 $ 9,211
LIABILITIES
Deposits $ 6,368 $ 6,377
Securities sold under repurchase
agreements 1,880 1,604
Federal Home Loan Bank advances 55 155
Other borrowings 126 113
Other liabilities 365 357
TOTAL LIABILITIES 8,794 8,606
SHAREHOLDER'S EQUITY 614 605
TOTAL LIABILITIES AND SHAREHOLDER'S
EQUITY $ 9,408 $ 9,211
See notes to consolidated financial statements.
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<PAGE>8
Summarized Statements of Cash Flows
Temple-Inland Financial Services
Unaudited
First Quarter
1996 1995
(in millions)
Cash Provided by (Used for) Operations
Net income $ 15.0 $ 8.5
Adjustments to reconcile net income
to net cash:
Amortization, accretion and depreciation 7.6 5.7
Provision for loan losses 6.2 5.3
Receivable from FDIC 7.2 5.2
Mortgage loans held for sale (76.4) 62.3
Collections and remittances on loans
serviced for others, net (9.7) 31.6
Other (35.5) (14.9)
(85.6) 103.7
Cash Provided by (Used for) Investments
Purchases of mortgage-backed and investment
securities held-to-maturity (.1) -
Purchases of mortgage-backed and investment
securities available-for-sale (1.7) (53.7)
Maturities of mortgage-backed and investment
securities held-to-maturity 75.0 99.0
Maturities of mortgage-backed and investment
securities available-for-sale 21.3 11.0
Proceeds from sales of loans and mortgage-
backed and investment securities available-
for-sale 4.3 192.6
Loans originated net of principal collected (194.5) (585.7)
Reduction in covered assets - 51.3
Other (14.8) (11.9)
(110.5) (297.4)
Cash Provided by (Used for) Financing
Net decrease in deposits (8.2) (22.6)
Net increase in securities sold under repurchase
agreements and short-term borrowings 227.2 277.2
Change in debt, net (89.3) 7.5
Other 18.2 34.0
147.9 296.1
Net increase in cash and cash equivalents (48.2) 102.4
Cash and cash equivalents at beginning of period 343.1 301.8
Cash and cash equivalents at end of period $ 294.9 $ 404.2
See notes to consolidated financial statements.
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<PAGE>9
Consolidated Statements of Income
Temple-Inland Inc. and Subsidiaries
Unaudited
First Quarter
1996 1995
(in millions)
Revenues
Manufacturing net sales $ 661.6 $ 660.8
Financial services revenues 198.3 173.9
859.9 834.7
Costs and Expenses
Manufacturing costs and expenses 588.4 569.7
Financial services expenses 173.6 159.7
762.0 729.4
Operating Income 97.9 105.3
Parent company interest - net (26.7) (16.6)
Other .2 1.0
Income Before Taxes 71.4 89.7
Taxes on income 25.0 31.4
Net Income $ 46.4 $ 58.3
Earnings per share $ .84 $ 1.04
Dividends Paid Per Share of Common Stock $ .30 $ .27
Weighted Average Shares Outstanding 55.6 56.1
See notes to consolidated financial statements.
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<PAGE>10
Consolidated Balance Sheets
Temple-Inland Inc. and Subsidiaries
March 30, 1996
Unaudited
Parent Financial
Company Services Consolidated
(in millions)
ASSETS
Cash and cash equivalents $ 15 $ 295 $ 310
Mortgage loans held for sale - 232 232
Loans receivable - 4,952 4,952
Mortgage-backed and investment
securities - 3,316 3,316
Trade and other receivables 304 - 302
Inventories 357 - 357
Property & equipment 2,806 77 2,883
Other assets 174 536 661
Investment in affiliates 614 - -
TOTAL ASSETS $ 4,270 $ 9,408 $13,013
LIABILITIES
Deposits $ - $ 6,368 $ 6,368
Securities sold under repurchase
agreements and Federal Home
Loan Bank advances - 1,935 1,935
Other liabilities 328 365 679
Long-term debt 1,558 126 1,684
Deferred income taxes 257 - 220
Postretirement benefits 134 - 134
TOTAL LIABILITIES $ 2,277 $ 8,794 11,020
SHAREHOLDERS' EQUITY
Preferred stock - par value $1 per share:
authorized 25,000,000 shares; none issued -
Common stock - par value $1 per share:
authorized 200,000,000 shares; issued
61,389,552 shares including shares held
in the treasury 61
Additional paid-in capital 304
Translation and other adjustments (21)
Retained earnings 1,804
2,148
Cost of shares held in the treasury:
5,827,137 shares (155)
TOTAL SHAREHOLDERS' EQUITY 1,993
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $13,013
See the notes to the consolidated financial statements.
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<PAGE>11
Consolidated Balance Sheets
Temple-Inland Inc. and Subsidiaries
December 30, 1995
Unaudited
Parent Financial
Company Services Consolidated
(in millions)
ASSETS
Cash and cash equivalents $ 15 $ 343 $ 358
Mortgage loans held for sale - 106 106
Loans receivable - 4,764 4,764
Mortgage-backed and investment
securities - 3,424 3,424
Trade and other receivables 285 - 283
Inventories 338 - 338
Property & equipment 2,788 76 2,864
Other assets 182 498 627
Investment in affiliates 605 - -
TOTAL ASSETS $ 4,213 $ 9,211 $12,764
LIABILITIES
Deposits $ - $ 6,377 $ 6,377
Securities sold under repurchase
agreements and Federal Home
Loan Bank advances - 1,759 1,759
Other liabilities 358 357 702
Long-term debt 1,489 113 1,602
Deferred income taxes 259 - 217
Postretirement benefits 132 - 132
TOTAL LIABILITIES $ 2,238 $ 8,606 10,789
SHAREHOLDERS' EQUITY
Preferred stock - par value $1 per share:
authorized 25,000,000 shares; none issued -
Common stock - par value $1 per share:
authorized 200,000,000 shares; issued
61,389,552 shares including shares held
in the treasury 61
Additional paid-in capital 306
Translation and other adjustments (14)
Retained earnings 1,773
2,126
Cost of shares held in the treasury:
5,731,411 shares (151)
TOTAL SHAREHOLDERS' EQUITY 1,975
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $12,764
See the notes to the consolidated financial statements.
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<PAGE>12
Consolidated Statements of Cash Flows
Temple-Inland Inc. and Subsidiaries
Unaudited
First Quarter
1996 1995
Cash Provided by (Used for) Operations (in millions)
Net income $ 46.4 $ 58.3
Adjustments to reconcile net income to net cash:
Depreciation and depletion 63.0 53.8
Amortization and accretion 5.4 3.8
Deferred taxes 6.7 16.5
Receivable from FDIC 7.2 5.2
Trade and other receivables (19.6) (41.5)
Accounts payable and accrued expenses (39.9) (7.0)
Inventories (11.0) (28.2)
Mortgage loans held for sale (76.4) 62.3
Increase (decrease) in collections and
remittances on loans serviced for
others, net (9.7) 31.6
Other (31.9) (17.0)
(59.8) 137.8
Cash Provided by (Used for) Investments
Capital expenditures (59.4) (88.0)
Purchases of mortgage-backed and investment
securities held-to-maturity (.1) -
Purchases of mortgage-backed and investment
securities available-for-sale (1.7) (53.7)
Maturities of mortgage-backed and investment
securities held-to-maturity 75.0 99.0
Maturities of mortgage-backed and investment
securities available-for-sale 21.3 11.0
Proceeds from sales of mortgage-backed and
investment securities available-for-sale 4.3 192.6
Loans originated net of principal collected (194.5) (585.7)
Reduction in covered assets - 51.3
Other (13.4) 1.0
(168.5) (372.5)
Cash Provided by (Used for) Financing
Additions to debt 166.9 74.4
Payments of debt (200.2) (14.5)
Net increase in short-term borrowings and
repurchase agreements 227.2 277.2
Cash dividends paid to shareholders (16.6) (15.1)
Net decrease in deposits (8.2) (22.6)
Other 11.3 34.1
180.4 333.5
Effect of exchange rate changes on cash and
cash equivalents - .3
Net increase (decrease) in cash and cash
equivalents (47.9) 99.1
Cash and cash equivalents at beginning of period 357.8 314.8
Cash and cash equivalents at end of period $ 309.9 $ 413.9
See notes to consolidated financial statements.
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<PAGE>13
TEMPLE-INLAND INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited interim consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. However, because certain assets and
liabilities are in separate corporate entities, the consolidated assets are
not available to satisfy all consolidated liabilities. In the opinion of
management, all adjustments (consisting only of normal accruals) considered
necessary for a fair presentation have been included. For further
information, refer to the consolidated financial statements and footnotes
included in, or incorporated into, Temple-Inland Inc.'s (the "Company") Annual
Report on Form 10-K for the fiscal year ended December 30, 1995.
The consolidated financial statements include the accounts of Temple-Inland
Inc. and all subsidiaries in which the Company has more than a 50 percent
equity ownership. All material intercompany amounts and transactions have
been eliminated.
Included as an integral part of the consolidated financial statements are
separate summarized financial statements for the Company's primary business
groups.
The Parent Company (Temple-Inland Inc.) summarized financial statements
include the accounts of Temple-Inland Inc. and its manufacturing subsidiaries
with the Financial Services subsidiaries and the 20 percent to 50 percent
owned companies being reflected in the financial statements on the equity
basis.
The Temple-Inland Financial Services Group summarized financial statements
include savings bank, mortgage banking and real estate development activities
and insurance operations.
The Company adopted FASB Statement No. 121, Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to be Disposed Of as of December
31, 1995. The effect of the implementation of Statement No. 121 was not
material to the consolidated financial statements.
NOTE B - CONTINGENCIES
There are pending against the Company and its subsidiaries lawsuits and claims
arising in the regular course of business.
In the opinion of management, recoveries, if any, by plaintiffs or claimants
that may result from the foregoing litigation and claims will not be material
in relation to the consolidated financial statements of the Company and its
subsidiaries.
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<PAGE>14
MANAGEMENT'S DISCUSSION AND ANALYSIS
Results of Operations
Results of operations, including information regarding the Company's principal
business segments, are shown below:
First Quarter
1996 1995
(in millions)
Revenues
Corrugated container $ 447.4 $ 433.4
Bleached paperboard 95.1 94.7
Building products 119.1 132.7
Manufacturing net sales 661.6 660.8
Financial services 198.3 173.9
Total revenues $ 859.9 $ 834.7
Income
Corrugated container $ 72.9 $ 64.8
Bleached paperboard (10.3) 7.5
Building products 15.6 23.7
Operating profit 78.2 96.0
Financial services 24.7 14.2
102.9 110.2
Corporate expenses (5.0) (4.9)
Parent company interest - net (26.7) (16.6)
Other - net .2 1.0
Income before taxes 71.4 89.7
Taxes on income 25.0 31.4
Net income $ 46.4 $ 58.3
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<PAGE> 15
First Quarter 1996 vs. First Quarter 1995
First quarter earnings of $46.4 million, or $.84 per share, represent a
decrease of 19 percent from the $58.3 million, or $1.04 per share, earned in
the first quarter of 1995. Revenues increased to $860 million, from $835
million in the comparable 1995 quarter.
The corrugated container group recorded first quarter operating earnings of
$72.9 million. Although this is an increase from the $64.8 million earned in
the first quarter of 1995, it represents a significant decline from this
segment s record earnings that were achieved in the third quarter of 1995. As
the U.S. economy slowed in the second half of 1995, demand for containerboard
and corrugated containers softened. This trend continued in the first quarter
leading to a significant decline in prices for containerboard and corrugated
containers. As in the last two quarters of 1995, the Company curtailed
production during the quarter to control inventory levels.
The bleached paperboard group lost $10.3 million in the quarter compared with
operating earnings of $7.5 million in the first quarter of 1995. This loss
was a result of continued weak demand for bleached paperboard and the
resulting decline in pricing. The Company limited production in the quarter
to manage inventory levels. The start-up of the new bleached paperboard
machine remained on schedule with paperboard quality meeting specifications
and market requirements. The cost associated with running the machine at less
than capacity due to market weakness also had a negative effect on earnings in
the quarter.
The Company's building products group reported first quarter operating
earnings of $15.6 million. Although this is a decline from the $23.7 million
earned in the first quarter of 1995, it represents a significant increase from
the $8.9 million earned in last year s fourth quarter. Lumber prices during
the quarter were above fourth quarter levels, but remain well below year ago
levels. During the quarter, the Company experienced operating losses of $1.3
million associated with initial production runs in the new Hope, Arkansas
particleboard plant. By the end of March, most of the operational problems
were resolved and the plant had achieved A grade certification for all major
product thicknesses. The demand for panel products (particleboard, fiberboard
and gypsum) strengthened during the quarter, which coupled with the additional
production from the new particleboard plant, should have a positive impact on
earnings in the second quarter.
The financial services group reported first quarter earnings of $24.7 million,
up 74 percent from the first quarter of 1995. This improvement in earnings
was the result of Guaranty Federal Bank continuing to increase the loan
portfolio which is 60 percent of total earning assets. In addition, Guaranty
continues to improve its operating efficiencies, thereby lowering costs.
Net interest expense increased to $26.7 million in the first quarter of 1996
compared with $16.6 million in the first quarter of last year. Capitalized
interest decreased from $9.7 million in the first quarter of 1995 to $1.4
million in the first quarter of 1996 due to the completion of the bleached
paperboard group s modernization and expansion projects. Interest expense
increased slightly due to higher levels of debt outstanding.
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<PAGE>16
Financial Condition
The Company's financial condition continues to be strong. Internally
generated funds, existing credit facilities and the capacity to issue long-
term debt are sufficient to fund projected capital expenditures, to service
existing debt, to pay dividends and to meet normal working capital
requirements. During the first quarter of 1996, the Parent Company s debt
increased $55.9 million mainly through issuance of commercial paper and bank
debt primarily to cover capital expenditures. Debt maturities of $97.4
million during the first quarter of 1996 were refinanced through commercial
paper and bank borrowings.
Guaranty Federal Bank continues to meet all three regulatory requirement
formulae set out under the Financial Institution Reform, Recovery and
Enforcement Act of 1989 ("FIRREA").
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<PAGE>17
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
The information set forth in Note B to Notes to Consolidated
Financial Statements in Part I of this report is incorporated
by reference thereto.
Item 2. Changes in Securities.
None.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Submission of Matters to a Vote of Security Holders.
The Company held its annual meeting of stockholders on May 3,
1996, at which a quorum was present. The table below sets
forth the number of votes cast for, against or withheld, as
well as the number of abstentions and broker non-votes for each
matter voted upon at that meeting.
Abstentions
Against or and Broker
Matter For Withheld Non-votes
1. Election of three Directors
(a) Anthony M. Frank 49,086,562 363,379 -
(b) Walter P. Stern 49,091,741 358,200 -
(c) Charlotte Temple 48,915,873 534,068 -
2. Ratification of appointment
of Ernst & Young LLP 49,270,634 67,803 111,504
Item 5. Other Information.
None.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits.
Regulation S-K
Exhibit Number
(11) Statement re computation of per share earnings.
(27) Financial Data Schedule
(b) Reports on Form 8-K. During the three months ended March
30, 1996, the Company did not file any reports on Form 8-
K.
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<PAGE>18
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.
TEMPLE-INLAND INC.
(Registrant)
Date: May 10, 1996 By /s/ David H. Dolben
David H. Dolben
Vice President and
Chief Accounting Officer
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<PAGE>19
EXHIBIT INDEX
The following is an index of the exhibits filed herewith. The page reference
set forth opposite the description of exhibits included in such index refers
to the pages under the sequential numbering system prescribed by Rule 0-3(b)
under the Securities Exchange Act of 1934.
Regulation S-K
Exhibit Sequential
Number Page Number
(11) Statement re computation of
per share earnings. 20
(27) Financial Data Schedule 21
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<PAGE>20
EXHIBIT (11)
TEMPLE-INLAND INC. AND SUBSIDIARIES
STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS
(in thousands, except for per share data)
13 Weeks Ended
March 30, April 1,
1996 1995
Primary
Average common shares outstanding . . . . . 55,565 56,065
Net effect of dilutive stock options
based on treasury stock method using
average market price . . . . . . . . . . 3 73
Weighted average shares outstanding 55,568 56,138
Net income . . . . . . . . . . . . . . . $ 46,426 $ 58,290
Earnings per share . . . . . . . . . . . $ .84 $ 1.04
Fully Diluted
Average common shares outstanding . . . . . 55,565 56,065
Net effect of dilutive stock options
based on treasury stock method
using the closing market price, if
higher than average market price . . . . 55 73
Weighted average shares outstanding . . 55,620 56,138
Net income . . . . . . . . . . . . . . . $ 46,426 $ 58,290
Earnings per share . . . . . . . . . . . $ .83 $ 1.04
-20-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
CONSOLIDATED BALANCE SHEETS AND CONSOLIDATED INCOME STATEMENTS FOR
TEMPLE-INLAND INC. AND SUBSIDIARIES AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-28-1996
<PERIOD-END> MAR-30-1996
<CASH> 310
<SECURITIES> 0
<RECEIVABLES> 302
<ALLOWANCES> 0
<INVENTORY> 357
<CURRENT-ASSETS> 0
<PP&E> 2,883
<DEPRECIATION> 0
<TOTAL-ASSETS> 13,013
<CURRENT-LIABILITIES> 0
<BONDS> 1,684
0
0
<COMMON> 61
<OTHER-SE> 1,932
<TOTAL-LIABILITY-AND-EQUITY> 13,013
<SALES> 662
<TOTAL-REVENUES> 860
<CGS> 588
<TOTAL-COSTS> 762
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 27
<INCOME-PRETAX> 71
<INCOME-TAX> 25
<INCOME-CONTINUING> 46
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 46
<EPS-PRIMARY> 0.84
<EPS-DILUTED> 0.83
</TABLE>
