<PAGE> 1
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
FOR THE QUARTERLY PERIOD ENDED DECEMBER 27, 1997
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 1-9929
INSTEEL INDUSTRIES, INC.
------------------------
(Exact name of registrant as specified in its charter)
NORTH CAROLINA 56-0674867
-------------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1373 BOGGS DRIVE, MOUNT AIRY, NORTH CAROLINA 27030
- -------------------------------------------- -----
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 336-786-2141
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes [X] No [ ]
The number of shares outstanding of the registrant's common stock as of
February 12, 1998 was 8,442,512.
<PAGE> 2
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
INSTEEL INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
DECEMBER 27, SEPTEMBER 30,
1997 1997
------------ -------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 149 $ 1,079
Accounts receivable, net 24,447 31,049
Inventories 48,468 44,463
Prepaid expenses and other 1,529 1,702
Net assets of discontinued operations 1,848 1,869
-------- --------
Total current assets 76,441 80,162
Property, plant and equipment, net 85,980 86,401
Other assets 4,883 4,913
-------- --------
Total assets $167,304 $171,476
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 27,252 $ 31,639
Accrued expenses 6,184 9,216
Current portion of long-term debt 2,620 2,620
-------- --------
Total current liabilities 36,056 43,475
Long-term debt 55,586 49,673
Deferred income taxes 5,463 5,989
Other liabilities 1,027 1,017
Shareholders' equity:
Common stock 16,885 16,873
Additional paid-in capital 38,232 38,200
Retained earnings 14,055 16,249
-------- --------
Total shareholders' equity 69,172 71,322
-------- --------
Total liabilities and shareholders' equity $167,304 $171,476
======== ========
</TABLE>
<PAGE> 3
INSTEEL INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands except for per share data)
(Unaudited)
<TABLE>
<CAPTION>
QUARTER ENDED
-----------------------------
DECEMBER 27 DECEMBER 31,
1997 1996
------------ ------------
<S> <C> <C>
Net sales $ 59,919 $ 58,426
Cost of sales 58,444 55,016
-------- --------
Gross profit 1,475 3,410
Selling, general and administrative expense 3,080 2,956
-------- --------
Operating income (loss) (1,605) 454
Interest expense 968 404
Other expense (income) 42 (2)
-------- --------
Earnings (loss) from continuing operations before income taxes (2,615) 52
Provision (benefit) for income taxes (928) 18
-------- --------
Earnings (loss) from continuing operations (1,687) 34
Discontinued operations:
Loss from operations of Insteel Construction Systems net of
income tax benefits of $-, and $165 -- (292)
-------- --------
Loss from discontinued operations -- (292)
-------- --------
Net loss $ (1,687) $ (258)
======== ========
Weighted average shares outstanding (basic and diluted) 8,441 8,435
======== ========
Earnings (loss) per share (basic and diluted):
Earnings (loss) from continuing operations $ (0.20) $ 0.00
Loss from discontinued operations 0.00 (0.03)
-------- --------
Net loss $ (0.20) $ (0.03)
======== ========
Dividends paid per share $ 0.06 $ 0.06
======== ========
</TABLE>
<PAGE> 4
INSTEEL INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
QUARTER ENDED
-----------------------------
DECEMBER 27, DECEMBER 31,
1997 1996
------------ ------------
<S> <C> <C>
OPERATING ACTIVITIES:
Net earnings (loss) from continuing operations $ (1,687) $ 34
Adjustments to reconcile net earnings (loss) to net cash
provided by operating activities:
Depreciation and amortization 2,365 2,110
Accounts receivable, net 6,658 10,193
Inventories (4,005) (5,992)
Accounts payable and accrued expenses (7,419) (2,452)
Other changes (422) 560
-------- --------
Total adjustments (2,823) 4,419
-------- --------
Net cash provided by (used for) operating activities (4,510) 4,453
-------- --------
DISCONTINUED OPERATING ACTIVITIES:
Net cash provided by discontinued operating activities 21 818
INVESTING ACTIVITIES:
Capital expenditures (1,873) (5,319)
Proceeds (payments) on notes receivable (28) 58
-------- --------
Net cash used for investing activities (1,901) (5,261)
-------- --------
FINANCING ACTIVITIES:
Proceeds from long-term debt 32,629 26,196
Principal payments on long-term debt (26,706) (26,698)
Proceeds from stock options 44 --
Dividends paid (507) (506)
-------- --------
Net cash provided by (used for) financing activities 5,460 (1,008)
-------- --------
Net decrease in cash (930) (998)
Cash and cash equivalents at beginning of period 1,079 1,423
-------- --------
Cash and cash equivalents at end of period $ 149 $ 425
======== ========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest $ 1,210 $ 821
Income taxes 485 388
</TABLE>
<PAGE> 5
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands, except per share data)
(1) BASIS OF PRESENTATION
The consolidated unaudited financial statements included herein have
been prepared by the Company 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. These unaudited consolidated financial statements should
be read in conjunction with the financial statements and notes thereto included
in the Company's Annual Report on Form 10-K for the year ended September 30,
1997.
The unaudited consolidated financial statements included herein reflect
all adjustments (consisting only of normal recurring accruals) that the Company
considers necessary for a fair presentation of the financial position, results
of operations and cash flows for all periods presented. The results for the
interim periods are not necessarily indicative of the results for the entire
fiscal year.
(2) CHANGE IN FISCAL YEAR
Effective October 1, 1997, the Company has adopted a 52 or 53 week
fiscal year ending on the Saturday nearest the last day of September in each
year. All references to years relate to fiscal years rather than calendar years.
(3) INVENTORIES
<TABLE>
<CAPTION>
DECEMBER 27, SEPTEMBER 30,
1997 1997
------------ -------------
<S> <C> <C>
Raw materials $25,504 $24,698
Supplies 2,164 2,147
Work in process 1,636 1,730
Finished goods 19,164 15,888
------- -------
Total inventories $48,468 $44,463
======= =======
</TABLE>
(4) DISCONTINUED OPERATIONS
In May 1997, the Company sold its Insteel Construction Systems division
("ICS"), which manufactured and marketed the Insteel 3-D(R) building panel. ICS
has been classified as a discontinued operation in the accompanying financial
statements in accordance with Accounting Principles Board Opinion No. 30.
The operating results of the discontinued ICS division are as follows:
<TABLE>
<CAPTION>
QUARTER ENDED
--------------------------
DECEMBER 27, DECEMBER 31,
1997 1996
------------ ------------
<S> <C> <C>
Net sales $ -- $ 376
Cost of sales -- 424
----- -----
Gross loss -- (48)
Selling, general and administrative expense -- 364
----- -----
Operating loss -- (412)
Interest expense -- 40
Other expense -- 5
----- -----
Loss from operations of Insteel Construction
Systems before income taxes -- (457)
Benefit for income taxes -- (165)
----- -----
Loss from operations of Insteel Construction
Systems $ -- $(292)
===== =====
</TABLE>
<PAGE> 6
The net assets of the discontinued ICS division were valued at the
lower of cost or realizable value. The components of net assets are as follows:
<TABLE>
<CAPTION>
DECEMBER 27, SEPTEMBER 30,
1997 1997
------------ -------------
<S> <C> <C>
Prepaid expenses and other $ 318 $ 323
Property, plant and equipment, net 1,387 1,418
Other assets 780 803
------ ------
Total assets 2,485 2,544
------ ------
Accrued expenses 637 675
------ ------
Total liabilities 637 675
------ ------
Net assets of discontinued operations $1,848 $1,869
====== ======
</TABLE>
(5) EARNINGS PER SHARE
The Company has adopted Statement of Financial Accounting Standards
("SFAS") No. 128, "Earnings Per Share" as of December 27, 1997. SFAS No. 128
replaces the primary and fully diluted earnings per share ("EPS") computations
with basic and diluted EPS. Basic EPS are computed by dividing net earnings by
the weighted average number of common shares outstanding during the period.
Diluted EPS are computed by dividing net earnings by the weighted average number
of common shares and dilutive securities outstanding during the period.
Securities that have the effect of increasing EPS are considered to be
antidilutive and are not included in the computation of diluted EPS. Options to
purchase 491,000 shares and 446,000 shares for the quarters ended December 27,
1997 and December 31, 1996, respectively, were antidilutive and were not
included in the diluted EPS computation.
The reconciliation of basic and diluted EPS is as follows:
<TABLE>
<CAPTION>
QUARTER ENDED
----------------------------
DECEMBER 27, DECEMBER 31,
1997 1996
------------ ------------
<S> <C> <C>
Earnings (loss) from continuing operations (1,687) 34
Loss from discontinued operations -- (292)
------ ------
Net loss (1,687) (258)
====== ======
Weighted average shares outstanding:
Weighted average shares outstanding (basic) 8,441 8,435
Dilutive effect of stock options -- --
------ ------
Weighted average shares outstanding (diluted) 8,441 8,435
====== ======
Earnings (loss) per share (basic and diluted):
Earnings (loss) from continuing operations (0.20) 0.00
Loss from discontinued operations -- (0.03)
------ ------
Net loss (0.20) (0.03)
====== ======
</TABLE>
(6) NEW ACCOUNTING PRONOUNCEMENTS
In June 1997, the Financial Accounting Standards Board ("FASB") issued SFAS No.
130, "Reporting Comprehensive Income" and SFAS No. 131, "Disclosures about
Segments of an Enterprise and Related Information." SFAS No. 130 establishes
standards for reporting and display of comprehensive income and its components.
SFAS No. 131, which is based on the management approach to segment reporting,
establishes requirements to report selected information about operating segments
and related disclosures about products and services, major customers and
geographic areas. As the requirements of these statements only impact financial
statement disclosures, they are not expected to have a material impact on the
Company's consolidated financial position or results of operations. The Company
will adopt SFAS' No. 130 and 131 in its fiscal year 1999.
<PAGE> 7
(7) SUBSEQUENT EVENT
On February 6, 1998, the Company announced that it had sold the inventory and
equipment related to its agricultural fencing product line to Keystone
Consolidated Industries, Inc. for approximately $13.0 million. The purchase
price will be adjusted based upon the actual inventory balances. Under the terms
of the agreement, Keystone will immediately assume the sales and marketing
responsibilities associated with serving Insteel's former customer base. Insteel
will continue manufacturing agricultural fencing products for Keystone as
equipment is relocated to Keystone's production facilities. The relocation of
equipment is expected to occur during the second half of 1998. The Company
expects to record a gain of $2.0 - $3.0 million, net of the estimated
transition-related costs, in its second fiscal quarter.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
RESULTS OF OPERATIONS
STATEMENTS OF EARNINGS - SELECTED DATA
($ in thousands)
<TABLE>
<CAPTION>
QUARTER ENDED
--------------------------------------------------
DECEMBER 27, DECEMBER 30,
1997 CHANGE 1996
------------ -------- ------------
<S> <C> <C> <C>
Net sales $59,919 3% $58,426
Gross profit 1,475 (57)% 3,410
Percentage of net sales 2.5% 5.8%
Selling, general and administrative expense $ 3,080 4% $ 2,956
Percentage of net sales 5.1% 5.1%
Operating income (loss) $(1,605) (454)% $ 454
Percentage of net sales (2.7)% 0.8%
Interest expense $ 968 140% $ 404
Percentage of net sales 1.6% 0.7%
Effective income tax rate 35.5% 34.6%
Earnings (loss) from continuing operations $(1,687) N/M $ 34
Percentage of net sales (2.8)% 0.1%
</TABLE>
Insteel's net sales for the first quarter rose to $59.9 million, a 3%
increase from the year-ago period. Sales growth for the current quarter was
driven by a 4% increase in average selling prices per ton, partially offset by a
1% decline in shipments. Sales of the concrete reinforcing products business
unit rose 8% from the prior year as a result of strong construction markets
together with continued increases in the operating levels of the PC strand
facility. Sales of the wire products business unit fell 1% as industrial wire
and bulk nail sales declined from year-ago levels. Industrial wire sales
decreased 2% primarily due to inventory adjustments at a major customer in
addition to a rationalization of sales transferred from the Virginia facility to
other locations. Bulk nail sales declined 8% from a strong year-ago period
reflecting lower selling values and shipments. Sales for the current quarter
were negatively impacted by the change in the Company's accounting calendar,
which resulted in 4 fewer days compared with the prior year period or a 4%
reduction in the number of shipping days.
Gross margins for the first quarter fell 57% from the prior year,
declining as a percentage of sales to 2.5% from 5.8%. The margin erosion was
primarily driven by start-up losses resulting from the negligible initial sales
of tire bead wire and welding wire during the customer qualification period. The
Company is currently incurring substantially all of the anticipated operating
costs at its Virginia facility related to these new products without significant
offsetting revenue. The Company's other new product initiative, collated
fasteners, also operated at a loss for the quarter due to insufficient sales
volume. Per-unit conversion costs at the Company's other production facilities
increased from the prior year as manufacturing expenses rose disproportionate to
operating volumes. Gross margins were also unfavorably affected by a narrowing
in spreads between selling values and raw material costs relative to year-ago
levels in certain products and markets within the concrete reinforcing business.
<PAGE> 8
Selling, general and administrative expense ("SG&A expense") increased
4% for the first quarter, remaining flat as a percentage of sales at 5.1%. The
increase in SG&A expense was primarily caused by higher selling expenses related
to the Company's new product initiatives.
Interest expense rose sharply for the first quarter from the year-ago
period due to higher borrowings on the Company's revolving credit facility
principally related to funding the capital expenditures for the tire bead wire
and welding wire expansion together with higher inventory levels.
The first quarter results of the prior year reflect a loss of $292,000
from the operations of the Company's Insteel Construction Systems division
("ICS") and the reclassification of the segment as discontinued operations. ICS
manufactured and marketed the Insteel 3-D(R) building panel.
FINANCIAL CONDITION
SELECTED FINANCIAL DATA
($ in thousands)
<TABLE>
<CAPTION>
DECEMBER 27, DECEMBER 31,
1997 1996
------------ ------------
<S> <C> <C>
Net cash provided by (used for) operating activities $ (4,510) $ 4,453
Net cash used for investing activities (1,901) (5,261)
Net cash provided by (used for) financing activities 5,460 (1,008)
Long-term debt 55,586 32,324
Percentage of total capital 45% 31%
Shareholders' equity $ 69,172 $ 72,912
Percentage of total capital 55% 69%
Total capital (long-term debt + shareholders' equity) $ 124,758 $ 105,236
</TABLE>
Operating activities used $4.5 million of cash in the first quarter
while providing $4.5 million in the year-ago period. The principal factor
responsible for the decline was a planned increase in raw material inventories
in anticipation of a probable disruption of supply related to the expiration of
a supplier's labor agreement. Payments of accounts payable increased from the
prior year as a result of disbursements related to raw material purchases.
Investing activities consumed $1.9 million of cash in the first quarter
compared with $5.3 million in the same period last year. Capital expenditures in
the prior year period were higher primarily due to the expansion into tire bead
wire and welding wire.
Financing activities provided $5.5 million of cash in the first quarter
while using $1.0 million in the prior year period. The increase in debt during
the current quarter was principally utilized to fund higher raw material
inventories.
The Company's long-term debt to capital ratio increased to 45% at
December 27, 1997 compared with 31% at December 31, 1996 primarily as a result
of capital expenditures related to the tire bead wire and welding wire expansion
together with higher inventory levels. In January 1996, the Company entered into
a $35.0 million unsecured revolving credit facility that will expire in November
2000, replacing the annual lines of credit that provided total availability of
$20.0 million. In April 1997, the revolving credit facility was amended,
increasing the Company's availability from $35.0 million to $50.0 million. At
December 27, 1997, approximately $6.7 million was available under the facility.
In January 1998, the revolving credit facility was amended, increasing the
Company's availability to $55.0 million and raising the permitted ratio of
funded debt to earnings before interest, taxes, depreciation and amortization
through March 1998. The Company currently expects to fund its capital
expenditure requirements and liquidity needs from a combination of internally
generated funds, the revolving credit facility and additional long-term sources
of financing.
YEAR 2000
The Company has initiated a Year 2000 program to assess and develop
plans to resolve the issue both internally and externally. The Company is
currently in the process of upgrading its business systems to Year 2000
compliant software which is expected to enhance the performance of the Company's
customer service, manufacturing and administrative processes. In addition, the
Company is surveying key suppliers and customers in order to identify potential
Year 2000 problems and determine the appropriate actions to be taken. The
Company does not expect the costs directly associated with
<PAGE> 9
Year 2000 compliance will have a material impact on its consolidated financial
position or results of operations. The Company also does not expect any
significant disruption in operations in the event that any of its suppliers or
customers fail to achieve Year 2000 compliance.
FACTORS THAT MAY AFFECT FUTURE RESULTS
This report contains forward-looking statements that reflect
management's current assumptions and estimates of future performance and
economic conditions. Such statements are made in reliance upon the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are subject to various risks and uncertainties that
could cause actual results to differ materially from those projected, stated or
implied by the statements. Such risks and uncertainties include, but are not
limited to, general economic conditions in the markets in which the Company
operates; unanticipated changes in customer demand, order patterns and inventory
levels; fluctuations in the cost and availability of the Company's primary raw
material, hot rolled steel rod; the Company's ability to raise selling prices in
order to recover increases in steel rod prices; legal, environmental or
regulatory developments that significantly impact the Company's operating costs;
the success of the Company's new product initiatives, including the PC strand,
collated fastener, tire bead wire and welding wire expansions; the inability of
the Company to expedite the qualification process with prospective customers for
tire bead wire and welding wire; the failure of the Company to receive regular
and substantial orders for its new products; and unexpected delays in completion
of the expansion of the PC strand facility.
OUTLOOK
The Company's operating results are impacted by seasonal factors,
particularly in the first quarter of the fiscal year, which has historically
represented the lowest quarterly sales volume. Shipments typically increase in
the second quarter and reach a high point in the third or fourth quarter,
reflecting the buying patterns of the Company's customers.
Domestic wire rod market conditions tightened during the previous year
and prices escalated due to actual and expected production outages at some of
the major producers together with the filing of petitions alleging subsidized
imports and dumping against certain countries exporting into the U.S.. In
November 1997, the U.S. International Trade Commission ("ITC") ruled that while
imports from certain countries were subsidized, such subsidies did not cause or
threaten to cause material injury to domestic producers of wire rod. It is
widely expected that the ITC's final determination on the dumping allegations,
scheduled for March 1998, will be favorable to wire rod consumers. These
developments have expanded the availability of wire rod to the Company,
alleviating the supply constraints that have characterized the market in recent
months. The Company expects that the resolution of the ITC filing together with
recently announced expansions in domestic wire rod capacity should increase
supplier competition and favorably impact quality and availability as the
additional capacity becomes fully operational.
The Company's business strategy continues to be focused on (1) further
expansion into higher value products that offer the potential to generate
significantly more attractive returns than the Company's traditional businesses
and (2) improving the financial performance of the Company's traditional
businesses or redeploying the capital investment into more productive uses.
During 1994 - 1997, the Company built two new production facilities and
reconfigured an existing operation in order to develop the manufacturing
capabilities required to enter the markets for PC strand, collated fasteners,
tire bead wire and welding wire. Sales of these new products are expected to
increase from $33.1 million in 1997 to $100.0 million in 2000 when fully
operational. The Company is proceeding with plans to expand the PC strand
manufacturing facility to its design capacity of approximately $45.0 million in
revenues. The expansion is expected to be completed in April 1998 at an
incremental cost of approximately $1.0 million.
The operating results of the Company will continue to be negatively
impacted until sales of tire bead wire, welding wire and collated fasteners rise
to significant levels. As the Company is currently incurring substantially all
of the anticipated operating costs at these facilities, the incremental impact
of projected increases in volume is expected to significantly improve its
financial performance.
The Company's cash flow is expected to significantly increase through
the remainder of the year as a result of the sale of the agricultural fencing
product line (see Note (7) of Notes to Consolidated Financial Statements), lower
inventory levels, reduced capital expenditure requirements, and gradual
improvement in operating results. Management currently intends to utilize any
excess cash flow generated to pay down debt, thereby reducing interest expense.
<PAGE> 10
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a. Exhibits:
27 - Financial Data Schedule (for SEC use only)
b. Reports on Form 8-K
No reports on Form 8-K were filed by the Registrant during the
quarter ended December 27, 1997.
<PAGE> 11
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.
INSTEEL INDUSTRIES, INC.
Registrant
Date: February 12, 1998 By /s/ H.O. Woltz III
-------------------------------------
H.O. Woltz III
President and Chief Executive Officer
Date: February 12, 1998 By /s/ Michael C. Gazmarian
-------------------------------------
Michael C. Gazmarian
Chief Financial Officer and Treasurer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF INSTEEL INDUSTRIES, INC. FOR THE THREE MONTHS ENDED
DECEMBER 27, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> OCT-03-1998
<PERIOD-END> DEC-27-1997
<CASH> 149
<SECURITIES> 0
<RECEIVABLES> 24,447
<ALLOWANCES> 0
<INVENTORY> 48,468
<CURRENT-ASSETS> 76,441
<PP&E> 85,980
<DEPRECIATION> 0
<TOTAL-ASSETS> 167,304
<CURRENT-LIABILITIES> 36,056
<BONDS> 0
0
0
<COMMON> 16,885
<OTHER-SE> 52,287
<TOTAL-LIABILITY-AND-EQUITY> 167,304
<SALES> 59,919
<TOTAL-REVENUES> 59,919
<CGS> 58,444
<TOTAL-COSTS> 58,444
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 968
<INCOME-PRETAX> (2,615)
<INCOME-TAX> (928)
<INCOME-CONTINUING> (1,687)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,687)
<EPS-PRIMARY> (0.20)
<EPS-DILUTED> (0.20)
</TABLE>
