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 December 31, 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 0-14061
STEEL TECHNOLOGIES INC.
(Exact name of registrant as specified in its charter)
Kentucky 61-0712014
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
15415 Shelbyville Road, Louisville, KY 40245
----------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(502) 245-2110
(Registrant's telephone number, including area code)
Not applicable
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Sections 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
There were 10,930,317 shares outstanding of the Registrant's common stock as of
January 31, 2000.
1
<PAGE>
STEEL TECHNOLOGIES INC.
INDEX
Page Number
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets December 31, 1999
(Unaudited) and September 30, 1999 (Audited) ...................... 3
Condensed Consolidated Statements of Income and Comprehensive
Income Three months ended December 31, 1999 and 1998 (Unaudited) .. 4
Condensed Consolidated Statements of Cash Flows
Three months ended December 31, 1999 and 1998 (Unaudited) ......... 5
Notes to Condensed Consolidated Financial Statements (Unaudited) .. 6-8
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations ............................................. 9-12
Item 3. Quantitative and Qualitative Disclosures About Market
Risk .............................................................. 12
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K .................................. 12
2
<PAGE>
Part I. - FINANCIAL INFORMATION
Item 1. Financial Statements
STEEL TECHNOLOGIES INC.
Condensed Consolidated Balance Sheets
<TABLE>
<CAPTION>
(In thousands) December 31 September 30
- --------------------------------------------------------------------------------
1999 1999
(Unaudited) (Audited)
-------------------------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents ................... $ 13,952 $ 12,578
Trade accounts receivable, net .............. 58,891 54,389
Inventories ................................. 83,750 80,625
Deferred income taxes ....................... 2,566 2,426
Prepaid expenses and other assets ........... 450 474
--------- ---------
Total current assets ..................... 159,609 150,492
Property, plant and equipment, net ............. 110,456 107,953
Investments in corporate joint ventures ........ 20,262 19,858
Goodwill, net of amortization .................. 9,570 9,664
Other assets ................................... 1,115 1,138
--------- ---------
$ 301,012 $ 289,105
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable ............................ $ 44,208 $ 44,649
Accrued liabilities ......................... 7,409 9,139
Income taxes payable ........................ 2,421 595
Long-term debt due within one year .......... 6,691 6,691
--------- ---------
Total current liabilities ................ 60,729 61,074
Long-term debt ................................. 102,041 90,209
Deferred income taxes .......................... 13,181 12,904
Other long term liabilities .................... 383 479
--------- ---------
Total liabilities ........................ 176,334 164,666
--------- ---------
Commitments and contingencies .................. -- --
Shareholders' equity:
Preferred stock ............................. -- --
Common stock ................................ 17,156 17,140
Treasury stock .............................. (9,911) (7,123)
Additional paid-in capital .................. 4,908 4,909
Retained earnings ........................... 114,297 111,311
Accumulated other comprehensive loss ........ (1,772) (1,798)
--------- ---------
Total shareholders' equity ................ 124,678 124,439
--------- ---------
$ 301,012 $ 289,105
========= =========
</TABLE>
The accompanying notes are an integral part of the condensed consolidated
financial statements.
3
<PAGE>
STEEL TECHNOLOGIES INC.
Condensed Consolidated Statements of Income
<TABLE>
<CAPTION>
In thousands, except per share results) Three Months Ended
(Unaudited) December 31
- --------------------------------------------------------------------------------
1999 1998
---------------------
<S> <C> <C>
Sales ................................................ $104,890 $ 98,203
Cost of goods sold ................................... 91,669 85,249
-------- --------
Gross profit .................................... 13,221 12,954
Selling, general and administrative expenses ......... 6,568 6,359
Equity in net income of unconsolidated
corporate joint venture ............................ 404 116
-------- --------
Operating income ................................... 7,057 6,711
Interest expense, net ................................ 1,344 1,705
-------- --------
Income before income taxes ........................ 5,713 5,006
Provision for income taxes ........................... 2,062 2,015
-------- --------
Net income ........................................ $ 3,651 $ 2,991
======== ========
Weighted average number of common
shares outstanding-diluted ........................ 11,186 11,439
======== ========
Diluted earnings per common share .................... $ 0.33 $ 0.26
======== ========
Weighted average number of common
shares outstanding-basic .......................... 11,095 11,427
======== ========
Basic earnings per common share ...................... $ 0.33 $ 0.26
======== ========
Cash dividends per common share ...................... $ 0.06 $ 0.05
======== ========
</TABLE>
Condensed Consolidated Statements of Comprehensive Income
<TABLE>
<CAPTION>
(In thousands) Three Months Ended
(Unaudited) December 31
- --------------------------------------------------------------------------------
1999 1998
---------------------
<S> <C> <C>
Net income ........................................... $ 3,651 $ 2,991
Foreign currency translation adjustment............ (26) --
------- --------
Comprehensive income ................................. $ 3,625 $ 2,991
======= ========
</TABLE>
The accompanying notes are an integral part of the condensed consolidated
financial statements.
4
<PAGE>
STEEL TECHNOLOGIES INC.
Condensed Consolidated Statements of Cash Flows
<TABLE>
<CAPTION>
(In thousands) Three months ended
(Unaudited) December 31
- --------------------------------------------------------------------------------
1999 1998
---------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income ......................................... $ 3,651 $ 2,991
Adjustments to reconcile net income to net cash
(used in) provided by operating activities:
Depreciation ................................... 3,182 3,056
Amortization ................................... 94 94
Deferred income taxes .......................... 137 406
Equity in net income of unconsolidated corporate
joint venture .................................. (404) (116)
Gain on sale of assets ......................... (19) (14)
Increase (decrease) in cash resulting from
changes in:
Trade accounts receivable ................ (4,474) (5,584)
Inventories .............................. (3,105) (3,046)
Prepaids expenses and other assets ....... 48 (1,324)
Accounts payable ......................... (379) 7,221
Accrued liabilities and income taxes ..... (56) 2,132
-------- --------
Net cash (used in) provided by operating activities ... (1,325) 5,816
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment ......... (5,772) (3,707)
Proceeds from sale of property, plant and equipment 55 1,304
Investment in unconsolidated joint venture ......... (600)
------ --------
Net cash used in investing activities ................. (5,717) (3,003)
------ --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long-term debt ....................... 12,000 7,000
Principal payments on long-term debt ............... (168) (167)
Cash dividends on common stock ..................... (665) (573)
Repurchase of common stock ......................... (2,788) (2,024)
Net issuance of common stock ....................... 16
Net issuance of common stock under
stock option plans ............................... 75
-------- --------
Net cash provided by financing activities ............. 8,395 4,311
-------- --------
Effect of exchange rate changes on cash ............... 21 (108)
-------- --------
Net increase in cash and cash equivalents ............. 1,374 7,016
Cash and cash equivalents, beginning of year .......... 12,578 4,778
-------- --------
Cash and cash equivalents, end of period .............. $ 13,952 $ 11,794
======== ========
Supplemental Cash Flow Disclosures:
Cash payment for interest ............................. $ 1,719 $ 1,759
======== ========
Cash payment for income taxes ......................... $ 364 $ --
======== ========
</TABLE>
The accompanying notes are an integral part of the condensed consolidated
financial statements.
5
<PAGE>
STEEL TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. BASIS OF PRESENTATION:
The condensed consolidated balance sheet as of December 31, 1999 and the
condensed consolidated statements of income, comprehensive income and cash flows
for the three months ended December 31, 1999 and 1998 have been prepared by the
Company without audit. In the opinion of management, all adjustments (which
include only normal recurring adjustments) necessary to present fairly the
financial position, results of operations and cash flows at December 31, 1999
and for all periods presented have been made.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted. It is suggested that these condensed financial
statements be read in conjunction with the financial statements and notes
thereto included in the Company's annual report to shareholders for the year
ended September 30, 1999. The results of operations for the three months ended
December 31, 1999 are not necessarily indicative of the operating results for
the full year.
2. INVENTORIES:
<TABLE>
<CAPTION>
Inventory consists of:
(In thousands) December 31 September 30
- --------------------------------------------------------------------------------
1999 1999
Unaudited Audited
-------------------------
<S> <C> <C>
Raw materials .................................... $ 68,137 $ 64,139
Finished goods and work in process ............... 15,613 16,485
---------- ----------
$ 83,750 $ 80,624
========== ==========
</TABLE>
6
<PAGE>
3. NET INCOME PER SHARE COMPUTATIONS:
The following is a reconciliation of the denominator of the basic and diluted
per share computations:
<TABLE>
<CAPTION>
Three Months Ended
(In thousands, except per share results) December 31
- --------------------------------------------------------------------------------
1999 1998
----------------------
<S> <C> <C>
Net income ............................................ $ 3,651 $ 2,991
--------- ---------
Shares (denominator) used for diluted
per share computations:
Weighted average shares of common stock
outstanding ................................... 11,095 11,427
Plus: dilutive effect of stock options ............ 91 12
--------- ---------
Diluted weighted average shares ............ 11,186 11,439
--------- ---------
Shares (denominator) used for basic per
share computations:
Weighted average shares of common stock
outstanding .................................... 11,095 11,427
--------- ---------
Net income per share data:
Diluted ........................................... $ 0.33 $ 0.26
========= =========
Basic ............................................. $ 0.33 $ 0.26
========= =========
</TABLE>
Options to purchase 70,000 and 566,000 shares for the three months ended
December 31, 1999, and 1998, respectively were excluded from the calculations
above because the exercise prices on the options were greater than the average
market price of the Company's stock during the periods.
4. ACQUISITION:
On January 12, 2000 the Company completed the purchase of Custom Steel, Inc. and
Custom Steel Processing Corp., collectively referred to as Custom Steel. The
purchase price included $13,350,000 in cash and the assumption of $5,400,000 of
liabilities. Additional contingent payments of up to $3,540,000 may also be made
during the next three years. The company financed the acquisition with existing
credit facilities. The Custom Steel acquisition will be accounted for under the
purchase method of accounting. Accordingly, the result of the operations of
Custom Steel will be included in the consolidated financial statements from the
date of acquisition.
7
<PAGE>
5. IMPACT OF RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS:
In June 1998, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 133, "Accounting for Derivative Instruments
and Hedging Activities" ("SFAS No. 133"). In general, SFAS No. 133 requires that
all derivatives be recognized as either assets or liabilities in the balance
sheet at their fair value, and sets forth the manner in which gains and losses
thereon are to be recorded. The treatment of such gains or losses is dependent
upon the type of exposure, it any, for which the derivative is designated as a
hedge. As amended by Statement of Financial Accounting Standards No. 137,
"Accounting for Derivative Instruments and Hedging Activities - Deferral of the
effective date for FASB Statement No 133," This standard is effective for the
Company's financial statements beginning October 1, 2001, with early adoption
permitted. Management of the Company anticipates that the adoption of SFAS No.
133 will not have a material impact on the Company's results of operations or
its financial position.
8
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
When used in the following discussion, the word "expects" and other similar
expressions are intended to identify forward-looking statements, which are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements are subject to certain risks
and uncertainties that could cause actual results to differ materially from
those projected. Specific risks and uncertainties include, but are not limited
to, general business and economic conditions; cyclicality of demand in the steel
industry, specifically in the automotive market; work stoppages; risks of
business interruptions affecting automotive manufacturers; competitive factors
such as pricing and availability of steel; reliance on key customers; ability
to integrate acquisitions; and potential equipment malfunctions. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date hereof. The Company undertakes no obligation to
republish revised forward-looking statements to reflect the occurrence of
unanticipated events or circumstances after the date hereof.
Results of Operations
- ---------------------
Steel Technologies posted record first quarter sales of $104,890,000 for the
fiscal quarter ended December 31, 1999, an increase of 7% from sales of
$98,203,000 for the first quarter ended December 31, 1998. Tons shipped of
Company-owned steel products in the first quarter of fiscal 2000 increased
approximately 8% compared to the first quarter of fiscal 1999 while the average
selling price of Company-owned steel products for the first quarter fiscal 2000
declined approximately 2% from the previous year. The Company focuses
significant resources on the automotive industry and generates a major portion
of business from selling manufacturing component parts to the automotive
industry. The Company continues to increase market share and to develop a
substantial amount of new business with both existing and new customers.
The gross profit margin was 12.6% in the first quarter of fiscal 2000 compared
to 13.2% in the first quarter of fiscal 1999. The decreases are primarily the
result of an increase in raw material prices and a reduction in toll processing
revenues as compared to the first quarter of last year. Strong demand for steel
products and the effort of the domestic steel industry to curtail unfair trade
practices of certain foreign steel importers have significantly reduced the
amount of imported flat rolled products flowing into the United States. As a
result, the supply of steel from foreign producers has declined significantly in
recent months, and resulted in the domestic producers increasing raw material
prices. The Company expects further increases in raw material costs in 2000 and
as a result, expects gross margins to be negatively impacted in the event that
the Company is unable to pass along corresponding sales price increases to its
customers. Production cost efficiencies and product mix improvements may
positively impact gross margins and somewhat offset rising raw material costs.
Additionally, an increase in the use of the Company's pickling facility and
blanking lines are expected to increase the amount of higher margin toll
processing revenue for the remaining of fiscal 2000. Toll processing, primarily
of customer-owned steel, generates higher gross margin percentages than the
traditional processing of Company-owned steel.
9
<PAGE>
Steel Technologies continues to actively manage the level at which sales,
general and administrative costs are added to its cost structure. Sales, general
and administrative costs increased approximately 3% for the current quarter
compared to the comparable period last year. The increase was primarily
attributable to additional marketing expenses to support sales growth and recent
capacity expansions in Ohio, South Carolina and Mexico. Sales, general and
administrative expenses were 6.3% and 6.5% of sales for the first quarter of
fiscal 2000 and 1999, respectively.
The Company's share of the income of Mi-Tech Steel, Inc., (Mi-Tech) an
unconsolidated corporate joint venture, was $404,000 for the first quarter of
fiscal 2000 and $116,000, for the first quarter of fiscal 1999. Improvements in
demand for Mi-Tech products and services positively impacted Mi-Tech's
profitability for the first quarter of fiscal 2000 as compared to the comparable
period of fiscal 1999. The Company expects a similar contribution from Mi-Tech
for the remaining quarters of fiscal 2000.
Net Interest expense was $1,344,000 and $1,705,000 for the first quarter of
fiscal 2000 and 1999, respectively. The decrease is primarily attributable to a
higher amount of interest income from Mexico and a reduction in interest expense
from amortizing a gain generated by terminating an interest rate swap agreement
in fiscal 1999. The company expects higher interest expense in subsequent
quarters due to the generally higher level of market interest rates as a result
of Federal Reserve monetary policy.
The effective income tax rate was approximately 36.1% and 40.5%, respectively
for the first quarter of fiscal 2000 and 1999, respectively. The net decrease
arises from an increase in the benefit due to a higher percentage of overall
earnings from the Mi-Tech joint venture.
Liquidity and Capital Resources
- -------------------------------
At December 31, 1999, Steel Technologies had $98,880,000 of working capital,
maintained a current ratio of 2.6:1 and had total debt at 47% of total
capitalization. The Company continues to manage the levels of accounts
receivable, inventories and other working capital items in relation to the
trends in sales and the overall market. For the first three months of fiscal
2000, increased inventory levels and higher accounts receivables without any
changes in the payables contributed to the use of $1,325,000 of cash from
operations. Cash flows from operations and available borrowing capabilities are
expected to meet the needs of the Company throughout fiscal 2000.
Capital expenditures for the three months of fiscal 2000 totaled $5,772,000. The
major expenditures were for the construction of the new Metamoros, Mexico
facility, the completion of the Ohio plant expansion and other capacity
expansion projects. Steel Technologies continues to expand production capacity
and processing facilities to serve the growing needs of customers. For fiscal
2000, the capital additions to all facilities, including the completion of the
construction of the Metamoros, Mexico facility, expansion of Steel Technologies
processing capabilities and the recently completed acquisition of Custom Steel
are expected to approximate $26,000,000.
On January 12, 2000 the Company completed the purchase of Custom Steel, Inc. and
Custom Steel Processing Corp., collectively referred to as Custom Steel. The
purchase price included $13,350,000 in cash and the assumption of $5,400,000 of
liabilities. Additional contingent payments of up to $3,540,000 may also be made
during the next three years. The company financed the acquisition with existing
credit facilities. The Custom Steel acquisition will be accounted for under the
purchase method of accounting. Accordingly, the result of the operations of
Custom Steel will be included in the consolidated financial statements from the
date of acquisition.
Steel Technologies maintains an equity investment of approximately $12,814,000
in its 90%-owned Mexican subsidiary.
10
<PAGE>
As of January 1, 1999, the Mexican subsidiary uses the peso as the functional
currency and the assets and liabilities of the Mexican subsidiary are translated
into U.S. dollars at the period end rate of exchange, and revenues and expenses
are translated at average rates of exchanges in effect during the periods.
Resulting translation adjustments are reported as a component of comprehensive
income. Foreign currency transaction gains and losses are included in net income
when incurred. Prior to January 1, 1999, the Mexican economy was considered
hyper-inflationary. Accordingly, the Company used the monetary/non-monetary
method of accounting for foreign currency translation. Under the
monetary/non-monetary method, non-monetary assets and liabilities were
translated at historical rates of exchange and the functional currency was the
U.S. dollar.
The Company maintains an investment of approximately $1,000,000, principally in
the preferred stock of Processing Technology, Inc., a corporate joint venture
accounted for using the cost method.
Pursuant to a joint venture agreement, Steel Technologies has guaranteed
$8,250,000 of the bank financing required for the working capital purposes of
Mi-Tech. Additional equity contributions to the joint venture are not expected
for the foreseeable future, but if required would be financed with available
funds from the Company's bank line of credit.
Steel Technologies has a $100,000,000 line of credit agreement expiring on
December 31, 2001, with various variable options on the interest rate, none of
which are greater than the bank's prime. During the first quarter of fiscal 2000
the Company borrowed $12,000,000 for working capital needs. At December 31,
1999, there was $69,000,000 outstanding on the credit facility. In January 2000,
the company borrowed $13,000,000 for the purchase of Custom Steel.
The line of credit is expected to be sufficient to finance the capital
expenditure plans as well as the working capital needs for fiscal 2000. At this
time the Company has no known material obligations, commitments or demands that
must be met beyond the next twelve months other than the ten-year private
placement notes and the unsecured bank line of credit. The ten-year notes
require principal payments through March 2005 and the line of credit is expected
to be renewed at the end of the term. Any additional funds will be used for
growth, including strategic acquisitions, investment in joint ventures,
construction of new plant capacity, and investment in production and processing
capabilities. The form of such financing may vary depending upon the prevailing
market and related conditions, and may include short or long-term borrowings or
the issuance of debt or equity securities.
At December 31, 1999, Steel Technologies had $108,732,000 of long-term debt
outstanding. Under various debt agreements, the Company agrees to maintain
specified levels of working capital and net worth, maintain certain ratios and
limit the addition of substantial debt. The Company is in compliance with all
loan covenants, and none of these covenants would restrict the completion of
currently planned capital expenditures.
On January 22, 1998, the Board of Directors approved a plan under which Steel
Technologies may repurchase up to 1,500,000 shares of its common stock. Shares
11
<PAGE>
may be purchased from time to time at prevailing prices in open market
transactions, subject to market conditions, share price and other
considerations. From the inception of the program, the company repurchased
approximately 1,096,000 shares of common stock, including 216,000 during the
first quarter of fiscal 2000.
Steel Technologies believes all manufacturing facilities are in compliance with
applicable federal and state environmental regulations. The Company is not
presently aware of any fact or circumstance, which would require the expenditure
of material amounts for environmental compliance.
Year 2000 Compliance
- --------------------
Steel Technologies' Year 2000 project (Project) addressed the issue of using two
digits, rather than four, to define the century. Any programs with a time
sensitive software may recognize a date using "00" as the year 1900 rather than
the year 2000, which could result in miscalculations or systems failures.
The Project focused primarily in the following areas: infrastructure,
applications, manufacturing, first party suppliers and customers. The
infrastructure section consisted of hardware and systems software other than
application software. The application software section included both the
conversion of application software that is not Year 2000 compliant and, where
applicable, the replacement of software. The manufacturing section of the
Project related to the hardware, software and associated embedded computer chips
that are used in the operation of all facilities. The first party suppliers and
customers section included the process of identifying and prioritizing critical
suppliers and customers and communicating with them about their plans and
progress in addressing the Year 2000 problem. All areas of The Project and
contingency planning were completed by December 31, 1999.
The total cost related to becoming Year 2000 compliant was not material to the
Company's financial position. The estimated cost of the Year 2000 Project was
approximately $200,000 of which approximately $150,000 was expensed in the first
nine months of fiscal 1999 and $50,000 was expensed as of the end of the
Company's fiscal year ended September 30, 1998. The Company did not incur any
additional material Year 2000 costs during the first quarter of fiscal 2000.
The company did not experience any material Year 2000 difficulties on January 1,
2000.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
There has been no material change during the first three months ended December
31, 1999 from the disclosures about market risk provided in the Company's Annual
Report on Form10-K for the year ended September 30, 1999.
Part II. - Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) The following exhibit is filed as a part of this report:
EXHIBIT 27 -- FINANCIAL DATA SCHEDULE
12
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
STEEL TECHNOLOGIES INC.
(Registrant)
By ___________________________________
Joseph P. Bellino
Chief Financial Officer
(Principal Financial and
Chief Accounting Officer)
Dated February 3, 2000
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
condensed consolidated balance sheet at December 31, 1999 and condensed
consolidated statement of income for the three months ended December 31, 1999
and is qualified in its entirety by reference to such statements.
</LEGEND>
<CIK> 0000771790
<NAME> Steel Technologies Inc.
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-mos
<FISCAL-YEAR-END> SEP-30-2000
<PERIOD-START> OCT-01-1999
<PERIOD-END> DEC-31-1999
<CASH> 13,952
<SECURITIES> 0
<RECEIVABLES> 60,010
<ALLOWANCES> (1,119)
<INVENTORY> 83,750
<CURRENT-ASSETS> 159,609
<PP&E> 184,346
<DEPRECIATION> (73,890)
<TOTAL-ASSETS> 301,012
<CURRENT-LIABILITIES> 60,729
<BONDS> 108,732
0
0
<COMMON> 17,156
<OTHER-SE> 107,522
<TOTAL-LIABILITY-AND-EQUITY> 301,012
<SALES> 104,890
<TOTAL-REVENUES> 104,890
<CGS> 91,699
<TOTAL-COSTS> 91,699
<OTHER-EXPENSES> 6,164
<LOSS-PROVISION> 81
<INTEREST-EXPENSE> 1,344
<INCOME-PRETAX> 5,713
<INCOME-TAX> 2,062
<INCOME-CONTINUING> 3,651
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,651
<EPS-BASIC> .33
<EPS-DILUTED> .33
</TABLE>
