<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 April 2, 1999
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 May 13, 1999
- --------------------------- ---------------------------
Common shares, no par value 12,379,741
Exhibit Index at Page 14
Page 1 of 16
<PAGE> 2
<TABLE>
WORTHINGTON FOODS, INC. AND SUBSIDIARY
INDEX
<CAPTION>
Page No.
--------
<S> <C>
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets -
April 2, 1999 and December 31, 1998 3-4
Condensed Consolidated Statements of Income -
For the three month periods ended April 2, 1999 and April 3, 1998 5
Condensed Consolidated Statements of Cash Flows -
For the three month periods ended April 2, 1999 and April 3, 1998 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>
4/2/99 12/31/98
------ --------
(UNAUDITED) (AUDITED)
(000'S OMITTED)
<S> <C> <C>
ASSETS
Current Assets
Cash ............................................................... $ 610 $ 1,054
Accounts receivable less allowance ................................. 11,502 13,109
(1999 - $130; 1998 - $100)
Inventories:
Finished goods .................................................. 22,845 18,032
Work in process ................................................. 1,895 1,690
Raw materials ................................................... 6,171 4,872
Packaging materials and supplies ................................ 2,783 2,357
-------- --------
33,694 26,951
Income taxes refundable ............................................ 938 4,936
Prepaid expenses and other ......................................... 5,719 1,686
-------- --------
Total Current Assets ............................................ 52,463 47,736
Property, Plant and Equipment ...................................... 97,160 93,397
Less accumulated depreciation and amortization .................. 32,336 30,860
-------- --------
64,824 62,537
Goodwill ........................................................... 272 352
Trade name ......................................................... 8,304 8,409
Intangible pension asset ........................................... 1,227 1,227
Other intangible assets ............................................ 713 688
-------- --------
10,516 10,676
TOTAL ASSETS .............................................. $127,803 $120,949
======== ========
</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>
4/2/99 12/31/98
------ --------
(UNAUDITED) (AUDITED)
(000'S OMITTED)
<S> <C> <C>
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable (including outstanding checks $2,156 in 1999
and $2,634 in 1998) ...................................... $ 6,313 $ 7,959
Accrued compensation ........................................... 506 765
Other accrued expenses ......................................... 3,509 2,658
Current portion of long-term debt and capital lease obligations 800 800
-------- --------
Total Current Liabilities ................................... 11,128 12,182
Long-Term Liabilities
Long-term debt and capital lease obligations ................... 32,783 26,583
Intangible pension asset ....................................... 1,395 1,395
Deferred income taxes .......................................... 8,154 8,000
-------- --------
Total Long-Term Liabilities ................................. 42,332 35,978
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 12,379,741 shares in 1999 and 12,356,440 in 1998 ....... 12,380 12,356
Additional paid-in capital ..................................... 19,027 18,931
Accumulated other comprehensive income ......................... (168) (168)
Retained earnings .............................................. 43,104 41,670
-------- --------
74,343 72,789
-------- --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY .................. $127,803 $120,949
======== ========
</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
---------------------------
4/2/99 4/3/98
------ ------
(UNAUDITED)
(000'S OMITTED, EXCEPT PER SHARE DATA)
<S> <C> <C>
Net sales ............................................. $ 36,808 $ 31,310
Cost of goods sold .................................... 20,995 17,963
----------- -----------
Gross profit ....................................... 15,813 13,347
Selling and distribution expenses ..................... 10,757 7,889
General and administrative expenses ................... 1,210 959
Research and development expenses ..................... 452 392
----------- -----------
12,419 9,240
----------- -----------
Income from operations ................................ 3,394 4,107
Interest expense ...................................... 512 451
----------- -----------
Income before income taxes ............................ 2,882 3,656
Provision for income taxes ............................ 1,182 1,499
----------- -----------
Net income ............................................ $ 1,700 $ 2,157
=========== ===========
Earnings per share:
Basic ............................................ $ 0.14 $ 0.19
=========== ===========
Diluted .......................................... $ 0.14 $ 0.18
=========== ===========
Dividends per share ................................... $ 0.0215 $ 0.0215
=========== ===========
Weighted average number of common and common equivalent
shares used in computing earnings per share
Basic ............................................ 12,372,764 11,644,570
Diluted .......................................... 12,522,194 11,960,015
</TABLE>
The accompanying notes are an integral part of the condensed consolidated
financial statements.
- 5 -
<PAGE> 6
<TABLE>
WORTHINGTON FOODS, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
<CAPTION>
THREE MONTHS ENDED
---------------------
4/2/99 4/3/98
------ ------
(UNAUDITED)
(000'S OMITTED)
<S> <C> <C>
Operating activities:
Net income ....................................................... $ 1,700 $ 2,157
Adjustments to reconcile net income to net cash provided by
(used for) operating activities:
Depreciation ................................................... 1,512 1,309
Deferred income taxes ......................................... 154 103
Amortization of intangible assets .............................. 194 89
Cash provided by (used for) current assets and liabilities:
Accounts receivable ........................................... 1,606 1,062
Inventories ................................................... (6,743) (5,070)
Prepaid expenses and other .................................... (783) 219
Accounts payable and accrued expenses ......................... (1,054) 817
Income taxes .................................................. 748 1,235
Decrease (increase) in other assets ............................ (33) 7
-------- -------
Net cash provided by (used for) operating activities ............. (2,699) 1,928
Investing activities:
Purchases of property, plant and equipment, net .................. (3,798) (1,601)
-------- -------
Net cash used for investing activities ........................... (3,798) (1,601)
Financing activities:
Proceeds from long-term borrowings ............................... 27,950 8,350
Payments on long-term borrowings ................................. (21,750) (7,766)
Proceeds from the issuance of common shares ...................... 119 156
Dividends paid ................................................... (266) (250)
-------- -------
Net cash provided by financing activities ........................ 6,053 490
Net increase (decrease) in cash .................................... (444) 817
Cash at beginning of period ........................................ 1,054 714
-------- -------
Cash at end of period .............................................. $ 610 $ 1,531
======== =======
</TABLE>
The accompanying notes are an integral part of the condensed consolidated
financial statements.
- 6 -
<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 period ended April 2, 1999 are not necessarily indicative of
the results that may be expected for the year ended December 31, 1999.
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, 1998 (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 April 20, 1999 meeting declared a $0.0215 per
share dividend payable July 30, 1999 to shareholders of record June 18,
1999.
- 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 Condensed
Consolidated Statements of Income expressed as a percentage of net sales for the
periods indicated.
<TABLE>
<CAPTION>
Three Months Ended
------------------
4/2/99 4/3/98
------ ------
<S> <C> <C>
Net sales ............................................... 100.0% 100.0%
Cost of goods sold ...................................... 57.0 57.4
----- -----
Gross profit .......................................... 43.0 42.6
Selling and distribution expenses ....................... 29.2 25.2
General and administrative expenses ..................... 3.3 3.0
Research and development expenses ....................... 1.3 1.3
----- -----
33.7 29.5
----- -----
Income from operations .................................. 9.2 13.1
Interest expense ........................................ 1.4 1.4
----- -----
Income before income taxes .............................. 7.8 11.7
Provision for income taxes .............................. 3.2 4.8
----- -----
Net income .............................................. 4.6% 6.9%
===== =====
Provision for income taxes as a percentage
of income before income taxes .......................... 41.0% 41.0%
===== =====
</TABLE>
FIRST QUARTER OF 1999 COMPARED TO 1998
Net sales for the first quarter ended April 2, 1999 increased approximately
$5,498,000 or 17.6% over the similar prior year period. Net sales in the first
quarter of 1999 to the Company's Specialty Markets (Seventh-day Adventist,
Health Food, and International) increased approximately $279,000 or 2.9% over
the similar prior year period. This increase is attributable to sales increases
in both the Health Food and International markets which increased approximately
$265,000 and $143,000 or 10.4% and 7.2%, respectively, over the similar prior
year period. Net sales in the Seventh-day Adventist market decreased $129,000 or
2.6% from the prior year period. This decrease is attributed to the timing of
customer orders as a moderate price increase went into effect at the end of the
first quarter of 1998. Net sales to Foodservice operations for the first quarter
of 1999 increased slightly to $3,794,000 or 0.5% over the similar prior year
period.
Net sales of Morningstar Farms(R) products to supermarkets in the first quarter
of 1999 increased approximately $5,199,000 or 28.8% over the similar prior year
period. Net sales of Morningstar Farms meat alternative products in the first
quarter of 1999 increased approximately $5,391,000 or 34.4% over the similar
prior year period. Strong category growth, expanded distribution, and the
addition of Harvest Burgers(R) products, contributed significantly to
- 8 -
<PAGE> 9
the first quarter 1999 sales gain. Sales of America's Original Veggie Dogs(R),
MeatFree Buffalo Wings, MeatFree Corn Dogs, and Hard Rock Cafe(R) Veggie
Burgers, which were introduced in 1998, continue to experience impressive growth
as the national roll-out for these products moves forward. Net sales of
Morningstar Farms frozen egg substitutes for the first quarter of 1999 decreased
approximately $192,000 or 8.2% from the similar prior year period.
Gross profit as a percentage of net sales for the first quarter of 1999
increased from 42.6% in 1998 to 43.0% in 1999. The Company's first quarter
results benefited from specific initiatives implemented during 1998 to increase
operating performance and slightly higher prices for Morningstar Farms products
implemented during the first quarter.
Selling and distribution expenses for the first quarter of 1999 increased as a
percentage of net sales from 25.2% in 1998 to 29.2% in 1999. During the second
quarter of 1998 the Company began to pursue an aggressive sales and marketing
strategy and these efforts are being expanded in 1999. A national advertising
campaign targeted to print and broadcast media will be introduced in May 1999
and continue throughout the remainder of this year. Particular emphasis will be
placed on increasing awareness of the Company's products and building brand
loyalty. In addition, new product packaging, developed as a result of consumer
research, will be introduced during the third quarter of 1999. General and
administrative expenses for the first quarter of 1999 increased as a percentage
of net sales from 3.0% in 1998 to 3.4% in 1999, primarily due to increased costs
related to the purchase of Harvest Burgers. Research and development expenses
were comparable to prior year percentages.
Interest expense for the first quarter of 1999 increased approximately $61,000
or 13.5% over the similar prior year period due to higher average borrowing
levels associated with increased inventory levels to support future sales growth
and the $7,800,000 capital expansion project at Zanesville.
Net income for the first quarter of 1999 decreased approximately $457,000 or
21.2% over the similar prior year period. This decrease is primarily
attributable to the increased costs associated with the aggressive sales and
marketing campaign and higher interest and partially offset by increased sales
and gross profit percentage.
LIQUIDITY AND CAPITAL RESOURCES
The Company relies on cash generated from operations and a $35,000,000 revolving
credit facility as its principal sources of liquidity. As of May 13, 1999,
$3,000,000 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.
The Company plans on spending approximately $7,800,000 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. The
distribution center expansion is expected to be completed in the second quarter
of 1999 and will be funded through cash generated from operations and the
revolving credit facility. As of April 30, 1999, $2,024,000 of the $7,800,000
had been spent.
Net cash provided by operating activities during the first quarter of 1999
decreased from the similar prior year period, primarily due to a decrease in net
income and changes in operating assets and liabilities.
Net cash used for investing activities during the first quarter of 1999
increased from the similar prior year period, primarily due to higher
expenditures for property, plant and equipment including the distribution center
expansion at the Zanesville facility.
Net cash provided by financing activities during the first quarter of 1999
increased from the similar prior year period, primarily due to increased
borrowings due to higher capital expenditures for property, plant and equipment
and higher inventory levels to support future sales growth.
- 9 -
<PAGE> 10
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 intends this information to constitute notice under the Year 2000
Information and Readiness Disclosure Act as "Year 2000 Readiness Disclosure."
The YEAR 2000 issue refers to a condition in computer software where a two-digit
field rather that a four-digit field is used to distinguish a calendar year.
Unless corrected, date sensitive software may recognize a date using "00" as the
year 1900 rather that the year 2000. This could result in system failures or
miscalculations causing disruptions to various activities and operations. Such
an uncorrected condition could significantly interfere with the conduct of the
Company's business, including disruption of its supply, manufacturing,
processing, distribution and financial chains.
The Company has conducted an assessment of the YEAR 2000 issue and the potential
effect it will have on the Company and its business. The Company has also
prepared a formal plan for dealing with the YEAR 2000 issue. The plan covers
information systems, financial and administrative systems, process control and
manufacturing operating systems and significant vendors and customers. The
Company is in the process of updating much of its existing software for YEAR
2000 compliance by modifying existing software or obtaining YEAR 2000 compliant
software updates from current software providers. The Company is utilizing
internal personnel, contract programmers and vendors to identify YEAR 2000
noncompliance problems, modify codes and test the modifications.
While the Company believes it has made substantial progress in resolving any
YEAR 2000 issues regarding our company-wide computer mainframe system,
sufficient testing to date has not been completed to fully validate readiness.
Additional testing is planned during the second quarter of 1999. The Company is
planning to complete all necessary YEAR 2000 upgrades and testing of its systems
by June 30, 1999.
The majority of the Company's manufacturing and process equipment is currently
YEAR 2000 compliant, based upon discussions with vendors. Equipment that is
non-compliant will be modified by purchasing YEAR 2000 compliant upgrades or
replacing the equipment. The Company is in the process of updating non-compliant
manufacturing systems. The Company estimates that these systems will be 60%
compliant by June 30, 1999, 80% compliant by August 31, 1999 and 100% compliant
by November 30, 1999.
The Company may also be affected by third-party suppliers that have not modified
their systems to adequately address the YEAR 2000 issue. The Company has
initiated efforts to evaluate the status of suppliers' efforts to resolve YEAR
2000 issues. The Company is monitoring the suppliers' efforts and addressing
options in case of non-compliance. These options include identification of
alternate suppliers and accumulation of inventory to assure production capacity.
All of the Company's critical suppliers have been contacted regarding YEAR 2000
compliance. These activities are intended to provide a means of managing risk,
but cannot eliminate the potential for disruption due to third party failure.
- 10 -
<PAGE> 11
The Company is also dependent upon our customers for sales and cash flow. The
Company has also sent surveys to our customers regarding YEAR 2000 compliance.
Non-compliance by our customers could result in reduced sales, higher accounts
receivable and inventory levels and reduced cash flow to the Company. The
Company believes that its customer base is broad enough to minimize the effects
of a single occurrence; however, we are taking steps to monitor the status of
our customers as a means of determining risks and alternatives.
The possibility exists that the Company could inadvertently fail to correct a
YEAR 2000 problem. However, failure to meet critical dates identified in our
readiness plan would provide advance notice and steps would be taken correct the
problem prior to January 1, 2000. The Company believes that the impact of such
an occurrence would be minor. The Company does not yet have a comprehensive
contingency plan, but has identified a vendor that can provide remote processing
in the event of a YEAR 2000 problem.
The Company continually upgrades its personal computers as part of its annual
capital budget; therefore, the Company does not anticipate any problems
regarding operating systems and ancillary software that resides on the Company's
personal computers. As of April 30, 1999, YEAR 2000 readiness has cost the
Company an estimated $150,000 and is expected to cost approximately $250,000 in
the aggregate to complete, not including internal resources.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements in this Form 10-Q which are not historical facts 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, capital expenditure amounts, uninsured product
liability, the effective detection and remediation of Year 2000 issues by the
Company and its key third party vendors, suppliers and customers 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
- ----------------------------------------------------------
No response required.
- 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
On April 20, 1999, the Annual Meeting of Shareholders was held. The
following directors were elected:
<TABLE>
<CAPTION>
For Withheld Votes Not Cast
--- -------- --------------
<S> <C> <C> <C>
William D. Parker 10,988,221 122,230 1,263,293
David R. Rowe 10,990,363 120,089 1,263,293
</TABLE>
The following directors continued their term of office: Roger D.
Blackwell, Emil J. Brolick, Donald G. Orrick, Francisco J. Perez,
Donald B. Shackelford and Dale E. Twomley.
The shareholders approved by a vote of 9,553,399 to 1,179,745, with
325,466 votes abstained and 51,844 broker non-votes, the Amended and
Restated Worthington Foods, Inc. 1995 Stock Option Plan.
Item 5. Other Information
Not Applicable
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
April 2, 1999.
- 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: May 14, 1999 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 April 2, 1999.
<TABLE>
<CAPTION>
Exhibit No. Page No.
- ----------- --------
<S> <C> <C>
11 Computation of Earnings Per Share 15
27 Financial Data Schedule 16
</TABLE>
- 14 -
<PAGE> 1
EXHIBIT 11
<TABLE>
WORTHINGTON FOODS, INC.
COMPUTATION OF EARNINGS PER SHARE
<CAPTION>
Three Months Ended
---------------------------
4/2/99 4/3/98
------ ------
<S> <C> <C>
Numerator:
Net income ..................................................... $ 1,700,000 $ 2,157,000
=========== ===========
Denominator:
Denominator for basic earnings per share
-- weighted-average shares ................................... 12,372,764 11,644,570
Effective of dilutive securities: Employee stock options ....... 149,430 315,445
----------- -----------
Denominator for diluted earnings per share
-- adjusted weighted-average shares and assumed conversions... 12,522,194 11,960,015
=========== ===========
Basic earnings per share .......................................... $ 0.14 $ 0.19
=========== ===========
Diluted earnings per share ........................................ $ 0.14 $ 0.18
=========== ===========
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> APR-02-1999
<CASH> 610
<SECURITIES> 0
<RECEIVABLES> 11,502
<ALLOWANCES> 130
<INVENTORY> 33,694
<CURRENT-ASSETS> 52,463
<PP&E> 97,160
<DEPRECIATION> 32,336
<TOTAL-ASSETS> 127,803
<CURRENT-LIABILITIES> 11,128
<BONDS> 0
0
0
<COMMON> 12,380
<OTHER-SE> 61,963
<TOTAL-LIABILITY-AND-EQUITY> 127,803
<SALES> 36,808
<TOTAL-REVENUES> 36,808
<CGS> 20,995
<TOTAL-COSTS> 33,414
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 512
<INCOME-PRETAX> 2,882
<INCOME-TAX> 1,182
<INCOME-CONTINUING> 1,700
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,700
<EPS-PRIMARY> 0.14
<EPS-DILUTED> 0.14
</TABLE>
