<PAGE> 1
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 July 3, 1998
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: 0-19887
WORTHINGTON FOODS, INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
OHIO 31-0733120
------------------------ ------------------------------------
(State of incorporation) (IRS Employer Identification Number)
900 PROPRIETORS ROAD, WORTHINGTON, OH 43085
---------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (614) 885-9511
Not Applicable
----------------------------------------------------
(Former name, former address and formal fiscal year,
if changed since last report.)
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 |_|
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Class Outstanding at July 29, 1998
--------------------------- ----------------------------
Common shares, no par value 11,750,859
Exhibit Index at Page 14
Page 1 of 16
<PAGE> 2
WORTHINGTON FOODS, INC. AND SUBSIDIARY
INDEX
<TABLE>
<CAPTION>
Page No.
--------
<S> <C>
PART I FINANCIAL INFORMATION
Item 1.Financial Statements
Condensed Consolidated Balance Sheets -
July 3, 1998 and December 31, 1997.............................................. 3-4
Condensed Consolidated Statements of Income -
For the three month and six month periods ended July 3, 1998 and July 4, 1997... 5
Condensed Consolidated Statements of Cash Flows -
For the six month periods ended July 3, 1998 and July 4, 1997................... 6
Notes to Condensed Consolidated Financial Statements.............................. 7
Item 2.Management's Discussion and Analysis of Financial Condition
and Results of Operations........................................................ 8-11
Item 3.Quantitative and Qualitative Disclosures About Market Risk.............................. 11
PART II OTHER INFORMATION....................................................................... 12
Item 1. Legal Proceedings................................................................... 12
Item 2. Changes in Securities and Use of Proceeds........................................... 12
Item 3. Defaults Upon Senior Securities..................................................... 12
Item 4. Submission of Matters to a Vote of Security Holders................................. 12
Item 5. Other Information................................................................... 12
Item 6. Exhibits and Reports on Form 8-K.................................................... 12
Signature .................................................................................. 13
Exhibit Index.................................................................................. 14
Exhibit 11 - Computation of Earnings Per Share.......................................... 15
Exhibit 27 - Financial Data Schedule.................................................... 16
</TABLE>
- 2 -
<PAGE> 3
ITEM 1.
FINANCIAL STATEMENTS
- --------------------
<TABLE>
WORTHINGTON FOODS, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
<CAPTION>
7/3/98 12/31/97
------ --------
(UNAUDITED) (AUDITED)
(000'S OMITTED)
<S> <C> <C>
ASSETS
Current Assets
Cash ............................................. $ 1,521 $ 714
Accounts receivable less allowance ............... 9,601 9,755
(1998 - $148; 1997 - $100)
Inventories:
Finished goods ............................... 16,614 13,875
Work in process .............................. 1,506 1,038
Raw materials ................................ 5,882 3,453
Packaging materials and supplies ............. 2,455 1,668
-------- -------
26,457 20,034
Income taxes refundable .......................... 206 1,230
Prepaid expenses and other ....................... 4,524 3,387
-------- -------
Total Current Assets ......................... 42,309 35,120
Property, Plant and Equipment
Land ......................................... 781 781
Building and improvements .................... 26,436 25,712
Machinery and equipment ...................... 55,533 53,677
Furniture and fixtures ....................... 2,745 2,714
Construction in progress ..................... 2,146 1,768
-------- -------
87,641 84,652
Less accumulated depreciation and
amortization ................................ 28,252 25,640
-------- -------
59,389 59,012
Goodwill ......................................... 513 675
Other intangible assets .......................... 643 679
-------- -------
1,156 1,354
TOTAL ASSETS ........................... $102,854 $95,486
======== =======
</TABLE>
The accompanying notes are an integral part of the condensed consolidated
financial statements.
- 3 -
<PAGE> 4
<TABLE>
WORTHINGTON FOODS, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
<CAPTION>
7/3/98 12/31/97
------ --------
(UNAUDITED) (AUDITED)
(000'S OMITTED)
<S> <C> <C>
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable (including outstanding checks of $1,476 in 1998
and $1,292 in 1997) ...................................... $ 6,058 $ 4,731
Accrued compensation ........................................... 711 513
Other accrued expenses ......................................... 3,428 2,262
Current portion of long-term debt and capital lease
obligations ................................................... 2,067 2,501
-------- -------
Total Current Liabilities .................................. 12,264 10,007
Long-Term Liabilities
Long-term debt and capital lease obligations ................... 22,083 22,333
Deferred income taxes .............................................. 7,038 6,730
-------- -------
Total Long-Term Liabilities ................................ 29,121 29,063
Shareholders' Equity
Preferred shares, no par value, authorized 2,000,000 shares,
none issued ............................................... -- --
Common shares, $1.00 stated value, authorized 30,000,000 shares,
issued 11,746,081 shares in 1998 and 11,580,507 in 1997 ... 11,746 11,580
Additional paid-in capital ..................................... 10,529 10,165
Retained earnings .............................................. 39,194 34,671
-------- -------
61,469 56,416
-------- -------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ................. $102,854 $95,486
======== =======
</TABLE>
The accompanying notes are an integral part of the condensed consolidated
financial statements.
- 4 -
<PAGE> 5
<TABLE>
WORTHINGTON FOODS, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
------------------ ----------------
7/3/98 7/4/97 7/3/98 7/4/97
------ ------ ------ ------
(UNAUDITED)
(000'S OMITTED, EXCEPT PER SHARE DATA)
<S> <C> <C> <C> <C>
Net sales .......................... $36,038 $31,398 $67,348 $57,887
Cost of goods sold ................. 19,814 17,947 37,777 33,502
------- ------- ------- -------
Gross profit .................... 16,224 13,451 29,571 24,385
Selling and distribution expenses .. 9,634 7,581 17,523 13,730
General and administrative
expenses .......................... 866 892 1,825 1,784
Research and development expenses .. 420 333 812 706
------- ------- ------- -------
10,920 8,806 20,160 16,220
------- ------- ------- -------
Income from operations ............. 5,304 4,645 9,411 8,165
Interest expense ................... 440 411 891 787
------- ------- ------- -------
Income before income taxes ......... 4,864 4,234 8,520 7,378
Provision for income taxes ......... 1,994 1,699 3,493 2,988
------- ------- ------- -------
Net income ......................... $ 2,870 $ 2,535 $ 5,027 $ 4,390
======= ======= ======= =======
Earnings per share:
Basic ......................... $ 0.25 $ 0.22 $ 0.43 $ 0.38
======= ======= ======= =======
Diluted ....................... $ 0.24 $ 0.21 $ 0.42 $ 0.37
======= ======= ======= =======
Dividends per share ................ $0.0215 $ 0.02 $ 0.043 $ 0.04
======= ======= ======= =======
Weighted average number of common
and common equivalent shares used in
computing earnings per share
Basic ......................... 11,723,816 11,517,857 11,683,762 11,488,176
Diluted ....................... 12,088,541 12,006,918 12,024,979 11,981,971
</TABLE>
Note: 1997 share amounts have been adjusted to reflect the four-for-three share
split in December, 1997.
The accompanying notes are an integral part of the condensed consolidated
financial statements.
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<PAGE> 6
<TABLE>
WORTHINGTON FOODS, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
<CAPTION>
SIX MONTHS ENDED
----------------
7/3/98 7/4/97
------ ------
(UNAUDITED)
(000'S OMITTED)
<S> <C> <C>
Operating activities:
Net income .................................................. $ 5,027 $ 4,390
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation .............................................. 2,645 2,139
Deferred income taxes .................................... 308 277
Amortization of intangible assets ......................... 161 178
Cash provided by (used for) current assets and liabilities:
Accounts receivable ..................................... 154 (2,067)
Inventories ............................................. (6,423) (5,257)
Prepaid expenses and other .............................. (1,137) (1,367)
Accounts payable and accrued expenses ................... 2,691 1,616
Income taxes ............................................ 1,023 1,021
Decrease in other assets .................................. 37 69
-------- --------
Net cash provided by operating activities ................... 4,486 999
Investing activities:
Purchases of property, plant and equipment, net ............. (3,021) (7,972)
-------- --------
Net cash used for investing activities ...................... (3,021) (7,972)
Financing activities:
Proceeds from long-term borrowings .......................... 24,200 40,199
Payments on long-term borrowings ............................ (24,884) (32,933)
Proceeds from the issuance of common shares ................. 529 382
Dividends paid .............................................. (503) (432)
-------- --------
Net cash (used for) provided by financing activities ........ (658) 7,216
Net increase in cash .......................................... 807 243
Cash at beginning of period ................................... 714 811
-------- --------
Cash at end of period ......................................... $ 1,521 $ 1,054
======== ========
</TABLE>
The accompanying notes are an integral part of the condensed consolidated
financial statements.
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<PAGE> 7
WORTHINGTON FOODS, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. The accompanying condensed consolidated financial statements
(unaudited) include the accounts of Worthington Foods, Inc. and
Subsidiary.
The information furnished reflects all adjustments (all of which were
of a normal recurring nature) which are, in the opinion of management,
necessary to fairly present the condensed consolidated financial
position, results of operations, and cash flows on a consistent basis.
Operating results for the three month and six month periods ended July
3, 1998 are not necessarily indicative of the results that may be
expected for the year ended December 31, 1998.
The accompanying condensed consolidated financial statements
(unaudited) are presented in accordance with the requirements for Form
10-Q and consequently do not include all the disclosures normally
required by generally accepted accounting principles. Reference should
be made to the Company's Form 10-K for the fiscal year ended December
31, 1997 (File No. 0-19887) for additional disclosures including a
summary of the Company's accounting policies, which have not
significantly changed. The Company's policy is that each fiscal year
includes four, thirteen week periods.
2. The Board of Directors at its July 21, 1998 meeting declared a $0.0215
per share dividend payable October 30, 1998 to shareholders of record
September 18, 1998.
- 7 -
<PAGE> 8
ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
- --------------------------------------------------------------------------
OPERATIONS
- ----------
RESULTS OF OPERATIONS
The following table sets forth selected items from the Company's Consolidated
Statements of Income expressed as a percentage of net sales for the periods
indicated.
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
------------------ ----------------
7/3/98 7/4/97 7/3/98 7/4/97
------ ------ ------ ------
<S> <C> <C> <C> <C>
Net sales ................................ 100.0% 100.0% 100.0% 100.0%
Cost of goods sold ....................... 55.0 57.2 56.1 57.9
----- ----- ----- -----
Gross profit ........................... 45.0 42.8 43.9 42.1
Selling and distribution expenses ........ 26.7 24.1 26.0 23.7
General and administrative expenses ...... 2.4 2.8 2.7 3.1
Research and development expenses ........ 1.2 1.1 1.2 1.2
----- ----- ----- -----
30.3 28.0 29.9 28.0
----- ----- ----- -----
Income from operations ................... 14.7 14.8 14.0 14.1
Interest expense ......................... 1.2 1.3 1.3 1.4
----- ----- ----- -----
Income before income taxes ............... 13.5 13.5 12.7 12.7
Provision for income taxes ............... 5.5 5.4 5.2 5.2
----- ----- ----- -----
Net income ............................... 8.0% 8.1% 7.5% 7.5%
===== ===== ===== =====
Provision for income taxes as a percentage
of income before income taxes ............ 41.0% 40.1% 41.0% 40.5%
===== ===== ===== =====
</TABLE>
SECOND QUARTER OF 1998 COMPARED TO 1997
Net sales for the second quarter and six month period ended July 3, 1998
increased approximately $4,640,000 and $9,461,000 or 14.8% and 16.3% over the
similar prior year periods. Net sales for the second quarter of 1998 to the
Company's Specialty Markets (Seventh-day Adventist, Health Food, and
International) decreased approximately $246,000 or 2.3% from the similar prior
year period. This decrease is primarily attributable to lower International
sales for the quarter due to the timing of customer orders. For the six month
period, net sales to the Company's Specialty Markets increased approximately
$1,023,000 or 5.6% over the similar prior year period. The six month increase in
sales is more in line with Company expectations.
Net sales to Foodservice operations for the second quarter and six month period
of 1998 increased approximately $1,520,000 and $2,511,000 or 47.1% and 40.0%
over the similar prior year periods. Foodservice continues to benefit from
increased sales to existing accounts as well as several new customers. Strong
business relationships that have been created by the Company's sales force with
the decision makers in foodservice operations are expected to continue to
increase sales.
- 8 -
<PAGE> 9
Net sales of Morningstar Farms(R) products to supermarkets in the second quarter
and six month period of 1998 increased approximately $3,365,000 and $5,926,000
or 19.1% and 17.9% over the similar prior year periods. Net sales of Morningstar
Farms meat alternative products in the second quarter and six month period of
1998 increased approximately $3,599,000 and $6,660,000 or 23.5% and 23.9% over
the similar prior year periods. The gain in sales continues to be attributed to
increased retail movement, increased distribution in supermarkets, and solid
acceptance of new and existing products. Distribution for America's Original
Veggie Dogs(TM) and Meat-free Corn Dogs continues to increase as initial
customer acceptance has been better than anticipated. The Company will be
introducing MSF Meat-free Buffalo Wings during the third quarter. These spicy
appetizers will start to appear on the frozen shelves of supermarkets in time
for the fall finger-food season. The Company's entry into the refrigerated meat
case began in the first quarter of 1998 with the rollout of five refrigerated
products in Modified Atmosphere Packaging (MAP). Sales of these products are
less than the Company projected at the beginning of the year, as there continues
to be out-of-stock problems with the meat case managers. The Company strongly
believes the concept is right and is working through the execution problems at
retail. Net sales of Morningstar Farms frozen egg substitutes for the second
quarter and six month period of 1998 decreased approximately $233,000 and
$733,000 or 9.8% and 14.0% from the similar prior year periods.
Gross profit as a percentage of net sales for the second quarter of 1998
increased from 42.8% in 1997 to 45.0% in 1998. For the six month period of 1998,
gross profit increased from 42.1% in 1997 to 43.9% in 1998. The increased gross
profit percentages are primarily attributable to the 3% price increase
implemented at the beginning of the second quarter, relatively stable material
prices, and ongoing efforts from the Company's consulting programs to control
variable costs and improve manufacturing efficiencies.
Selling and distribution expenses as a percentage of net sales for the second
quarter and six month period of 1998 increased from 24.1% and 23.7% in 1997 to
26.7% and 26.0% in 1998. Aggressive marketing and advertising expenditures were
made during the first half of 1998 to leverage the Company's market leadership
position in meat alternative products. Several significant advertising and
promotional programs were implemented during the second quarter of 1998 to
attempt to raise the awareness of the Company's products among consumers and
also reach the Company's target market in the most efficient manner. This
resulted in increased sales and distribution of the Company's products. General
and administrative expenses for the second quarter and six month period of 1998
decreased as a percentage of net sales from 2.8% and 3.1% in 1997 to 2.4% and
2.7% in 1998. This decrease is primarily the result of efficiencies gained
through higher sales volume. Research and development expenses remain comparable
to prior year percentages.
Interest expense for the second quarter and six month period of 1998 increased
approximately $29,000 and $104,000 or 7.1% and 13.2% over the similar prior year
periods. The increase is attributed to higher average borrowing levels
associated with increased inventory levels to support future sales growth and
the $11,500,000 capital expansion project at Zanesville which was completed
during September, 1997.
Net income for the second quarter and six month period of 1998 increased
approximately $335,000 and $637,000 or 13.2% and 14.5% over the similar prior
year periods. This increase is the result of increased sales and increased gross
profit percentages, partially offset by higher selling, general and
administrative expenses as a percentage of net sales, higher interest costs and
a higher tax rate.
LIQUIDITY AND CAPITAL RESOURCES
The Company relies on cash generated from operations and a $25,000,000 revolving
credit facility as its principal sources of liquidity. As of July 29, 1998,
$8,225,000 of this credit facility was unused. The Company believes that this
borrowing capability plus internally generated funds will be adequate to finance
current growth levels into the foreseeable future.
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<PAGE> 10
Due to the research and technology of refrigerated products not yet being
complete, the Company has postponed the $6,000,000 expansion at Zanesville to
produce America's Original Veggie Dogs and future refrigerated products. The
Company plans on spending approximately $7,500,000 to expand the frozen
distribution center in Zanesville. This expansion will allow the Company to
maintain higher finished goods inventory to support future sales growth.
Approximately $4,000,000 of the $7,500,000 will be spent during 1998 with the
remainder being spent in 1999. The distribution center expansion is expected to
be completed early in the second quarter of 1999 and will be funded through cash
generated from operations and the revolving credit facility. As of July 29,
1998, none of the $7,500,000 had been spent.
Net cash provided by operating activities for the six month period of 1998
increased over the similar prior year period due to an increase in net income
and changes in operating assets and liabilities.
Net cash used for investing activities during the six month period of 1998
decreased from the similar prior year period, primarily due to lower
expenditures for property, plant and equipment at Zanesville. During the first
six months of 1997, the Company had begun the $11,500,000 expansion project at
the Zanesville facility.
Net cash used for financing activities for the six month period of 1998
increased from the similar prior year period, primarily due to lower borrowings
for capital expenditures of property, plant and equipment and increased cash
from operations which was used to pay debt.
INFLATION
Although inflation has slowed in recent years, the Company continues to seek
ways to moderate any inflationary impact. To the extent possible based on
competitive conditions, the Company passes increased costs on to its customers
by increasing sales prices over time.
The Company uses the LIFO method of accounting for raw materials, packaging
materials and the materials content of work-in-process and finished goods. Under
this method, the cost of products sold reported in the financial statements
approximates current costs.
COMPLIANCE WITH ENVIRONMENTAL PROTECTION REGULATIONS
The Company does not anticipate that compliance with federal, state, and local
regulations with respect to the discharge of materials into the environment, or
otherwise relating to the protection of the environment, will have a material
effect on capital expenditures, earnings, or the competitive position of the
Company.
YEAR 2000
The Company has developed preliminary plans to address the possible exposures
related to the impact on its computer and operating systems of the year 2000.
Key financial and operational systems are being assessed and plans are being
developed to address system modifications required by December 31, 1999. The
Company expects that these modifications will be addressed and completed by
January 1, 1999. The Company has also established a preliminary plan to
determine the status of its suppliers in addressing their year 2000 compliance.
The financial impact of making the required changes is not expected to be
material to the Company's consolidated financial position, results of operations
or cash flows.
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<PAGE> 11
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements in this Form 10-Q which are not historical fact are
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements involve known and unknown risks,
uncertainties and other factors that may cause actual results to differ
materially. Such risks, uncertainties and other factors include, but are not
limited to, changes in general economic conditions, fluctuation in interest
rates, increases in raw material costs, level of competition, market acceptance
of new and existing products, price competition, the ability to deliver products
with acceptable profit margins, risks inherent in International development,
success of the Company's new user marketing strategy, capital expenditure
amounts, uninsured product liability, unforeseen technological issues associated
with Year 2000, and other factors described in detail in the Company's filings
with the Securities and Exchange Commission and communication to shareholders.
ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
- ----------------------------------------------------------
Not Applicable
- 11 -
<PAGE> 12
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Not Applicable
Item 2. Changes in Securities and Use of Proceeds
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
As discussed in the Company's Proxy Statement for the 1998
Annual Meeting of Shareholders, any qualified shareholder
of the Company who intends to submit a proposal to the
Company at the 1999 Annual Meeting of Shareholders must
submit such proposal to the Company not later than
November 17, 1998 to be considered for inclusion in the
Company's Proxy Statement and form of Proxy (the "Proxy
Materials") relating to that meeting. If a shareholder
intends to present a proposal at the 1999 Annual Meeting
of Shareholders, but has not sought the inclusion of such
proposal in the Company's Proxy Materials, such proposal
must be received by the Company prior to January 30, 1999
or the Company's management proxies for the 1999 Annual
Meeting will be entitled to use their discretionary voting
authority should such proposal then be raised, without any
discussion of the matter in the Company's Proxy Materials.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 11. Computation of Earnings Per Share
Exhibit 27. Financial Data Schedule
(b) No report on Form 8-K was filed during the fiscal
quarter ended July 3, 1998.
- 12 -
<PAGE> 13
SIGNATURE
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.
WORTHINGTON FOODS, INC.
----------------------------
(Registrant)
Date: August 5, 1998 By: /S/ WILLIAM T. KIRKWOOD
------------------- ----------------------------
William T. Kirkwood
Executive Vice President and
Chief Financial Officer
- 13 -
<PAGE> 14
EXHIBIT INDEX
Filed with Worthington Foods, Inc. Quarterly Report on Form 10-Q for the Quarter
Ended July 3, 1998.
Exhibit No. Page No.
----------- --------
11 Computation of Earnings Per Share 15
27 Financial Data Schedule 16
- 14 -
<PAGE> 1
EXHIBIT 11
<TABLE>
WORTHINGTON FOODS, INC.
COMPUTATION OF EARNINGS PER SHARE
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
------------------ ----------------
7/3/98 7/4/97 7/3/98 7/4/97
------ ------ ------ ------
<S> <C> <C> <C> <C>
Basic:
Weighted average number of common
shares outstanding ............................. 11,723,816 11,517,857 11,683,762 11,488,176
=========== =========== =========== ===========
Net income ..................................... $ 2,870,000 $ 2,535,000 $ 5,027,000 $ 4,390,000
=========== =========== =========== ===========
Earnings per share ............................. $ 0.25 $ 0.22 $ 0.43 $ 0.38
=========== =========== =========== ===========
Diluted:
Weighted average number of common
shares outstanding ........................... 11,723,816 11,517,857 11,683,762 11,488,176
Net effect of dilutive stock options based
on the treasury stock method using the
average market price during the period ....... 364,725 489,061 341,217 493,795
----------- ----------- ----------- -----------
Weighted average common and common
equivalent shares used in computing
earnings per share ........................... 12,088,541 12,006,918 12,024,979 11,981,971
=========== =========== =========== ===========
Net income ..................................... $ 2,870,000 $ 2,535,000 $ 5,027,000 $ 4,390,000
=========== =========== =========== ===========
Earnings per share ............................. $ 0.24 $ 0.21 $ 0.42 $ 0.37
=========== =========== =========== ===========
</TABLE>
Note: 1997 share amounts have been adjusted to reflect the four-for-three share
split in December, 1997.
- 15 -
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUL-03-1998
<CASH> 1,521
<SECURITIES> 0
<RECEIVABLES> 9,601
<ALLOWANCES> 148
<INVENTORY> 26,457
<CURRENT-ASSETS> 42,309
<PP&E> 87,641
<DEPRECIATION> 28,252
<TOTAL-ASSETS> 102,854
<CURRENT-LIABILITIES> 12,264
<BONDS> 0
0
0
<COMMON> 11,746
<OTHER-SE> 49,723
<TOTAL-LIABILITY-AND-EQUITY> 102,854
<SALES> 67,348
<TOTAL-REVENUES> 67,348
<CGS> 37,777
<TOTAL-COSTS> 57,937
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 891
<INCOME-PRETAX> 8,520
<INCOME-TAX> 3,493
<INCOME-CONTINUING> 9,411
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,027
<EPS-PRIMARY> 0.43
<EPS-DILUTED> 0.42
</TABLE>
