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 period ended July 31, 1999.
___ 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 0-15407
Circuit Systems, Inc.
(Exact name of registrant as specified in charter)
Illinois 36-2663010
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
2400 East Lunt Avenue, Elk Grove Village, Illinois 60007
(Address of principal executive offices) (Zip Code)
(847) 439 - 1999
(Registrant's telephone number, (Former name, former address and
including area code) 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 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 .
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDING DURING THE PRECEDING FIVE YEARS
Indicate by check mark whether the registrant has filed all documents
and reports required to be filed by Sections 12, 13, or 15 (d) of the
Securities Exchange Act of 1934 subsequent to the distribution of
securities under a plan confirmed by a court. Yes No
APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares
outstanding of each of the issuer's classes of common stock, as of the
latest practicable date, August 31, 1999: 3,926,020
<PAGE>
CIRCUIT SYSTEMS, INC.
AND SUBSIDIARIES
INDEX
PART I. FINANCIAL INFORMATION Page
Number
------
Item 1. Financial Statements
Consolidated Condensed Balance Sheets 3
Consolidated Condensed Statements of 4
Operations
Consolidated Condensed Statements of 5
Cash Flows
Notes to Consolidated Condensed 6
Financial Statements
Item 2. Management's Discussion and Analysis of 7
Financial Condition And Results of Operations
Item 3. Quantitative and Qualitative Disclosures 10
about Market Risks
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 10
SIGNATURES 11
<PAGE>
<TABLE>
CIRCUIT SYSTEMS, INC.
AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(UNAUDITED)
<CAPTION>
ASSETS 07/31/99 04/30/99
---------- ----------
<S> <C> <C>
CURRENT ASSETS
CASH AND CASH EQUIVALENTS $ 44,896 $ 1,463,336
ACCOUNTS RECEIVABLE, LESS
ALLOWANCE OF $175,000 14,235,178 13,048,378
INVENTORIES
RAW MATERIALS 4,865,016 4,007,914
WORK IN PROCESS 2,405,525 2,451,106
FINISHED GOODS 3,387,604 3,073,442
---------- ----------
10,658,145 9,532,462
REFUNDABLE INCOME TAXES 579,000 579,000
DEFERRED INCOME TAXES 309,000 309,000
PREPAID EXPENSES 63,773 103,707
---------- ----------
TOTAL CURRENT ASSETS 25,889,992 25,035,883
INVESTMENT IN AFFILIATE 3,252,775 3,211,083
PROPERTY, PLANT AND EQUIPMENT - AT COST
BUILDING AND IMPROVEMENTS 15,683,799 15,206,521
MACHINERY AND EQUIPMENT 56,401,792 53,454,625
AUTOMOTIVE EQUIPMENT 226,922 226,922
---------- ----------
72,312,513 68,888,068
LESS ACCUMULATED DEPRECIATION 29,802,706 28,082,923
---------- ----------
42,509,807 40,805,145
LAND 3,040,453 3,040,453
---------- ----------
45,550,260 43,845,598
OTHER ASSETS
GOODWILL, NET 6,376,447 6,487,447
DEPOSITS AND SUNDRY 1,446,509 1,335,757
---------- ----------
TOTAL OTHER ASSETS 7,822,956 7,823,204
---------- ----------
TOTAL ASSETS $82,515,983 $79,915,768
========== ==========
<PAGE>
LIABILITIES AND EQUITY
CURRENT LIABILITIES
CURRENT MATURITIES OF LONG-TERM
OBLIGATIONS $ 7,408,707 $ 7,854,208
ACCOUNTS PAYABLE 14,749,154 9,252,421
ACCRUED LIABILITIES 2,528,984 2,461,738
INCOME TAXES PAYABLE - -
---------- ----------
TOTAL CURRENT LIABILITIES 24,686,845 19,568,367
LONG-TERM OBLIGATIONS 40,471,655 41,512,604
DEFERRED INCOME TAXES 2,235,182 2,556,000
COMMITMENTS AND CONTINGENCIES - -
SHAREHOLDERS' EQUITY
COMMON STOCK 2,191,168 2,191,168
RETAINED EARNINGS 12,931,133 14,087,629
---------- ----------
TOTAL SHAREHOLDERS' EQUITY 15,122,301 16,278,797
---------- ----------
TOTAL LIABILITIES AND EQUITY $82,515,983 $79,915,768
========== ==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS
</TABLE>
<PAGE>
<TABLE>
CIRCUIT SYSTEMS, INC.
AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
THREE MONTHS ENDED
7/31/99 7/31/98
------------ -----------
<S> <C> <C>
NET SALES $ 23,359,056 $ 22,553,713
COST OF GOODS SOLD 21,952,643 19,501,218
------------ -----------
GROSS PROFIT 1,406,413 3,052,495
SALES AND MARKETING EXPENSES 1,139,129 794,165
ADMINISTRATIVE EXPENSES 1,193,173 913,051
RESTRUCTURING CHARGE - 1,520,000
------------ -----------
2,332,302 3,227,216
OPERATING LOSS (925,889) (174,721)
OTHER (INCOME) DEDUCTIONS
INTEREST EXPENSE 985,384 727,179
EQUITY IN EARNINGS OF
UNCONSOLIDATED AFFILIATE (41,692) (3,789)
MINORITY INTEREST IN LOSS
OF SUBSIDIARY - (31,782)
RENTAL INCOME (105,159) (104,060)
SUNDRY (26) 11,690
------------ -----------
838,507 599,238
LOSS BEFORE INCOME TAXES (1,764,396) (773,959)
INCOME TAX BENEFIT (607,900) (275,000)
------------ -----------
NET LOSS $ (1,156,496) $ (498,959)
============ ===========
PER SHARE DATA:
NET LOSS PER COMMON SHARE-BASIC $ (.29) $ (.11)
============ ===========
NET LOSS PER COMMON SHARE-DILUTED $ (.29) $ (.11)
============ ===========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS
</TABLE>
<PAGE>
<TABLE>
CIRCUIT SYSTEMS, INC.
AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<CAPTION>
THREE MONTHS ENDED
07/31/99 07/31/98
---------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
NET LOSS $(1,156,496) $ (498,959)
ADJUSTMENTS TO RECONCILE NET LOSS TO
NET CASH PROVIDED BY OPERATING ACTIVITIES:
DEPRECIATION AND AMORTIZATION 1,839,783 1,302,416
GAIN ON SALE OF EQUIPMENT - -
MINORITY INTEREST IN LOSS OF SUBSIDIARY - (31,782)
DEFERRED INCOME TAXES (320,818) 175,000
EQUITY IN EARNINGS OF UNCONSOLIDATED
AFFILIATE (41,692) (3,789)
CHANGES IN ASSETS AND LIABILITIES,
NET OF EFFECTS FROM DIVESTITURE
ACCOUNTS RECEIVABLE (1,186,800) 2,279,298
INVENTORIES (1,125,683) (529,438)
PREPAID EXPENSES 39,934 (32,654)
OTHER ASSETS (110,752) 244,456
ACCOUNTS PAYABLE AND ACCRUED
LIABILITIES 5,563,979 (2,114,463)
---------- -----------
TOTAL ADJUSTMENTS 4,657,951 1,289,044
---------- -----------
NET CASH PROVIDED BY OPERATIONS 3,501,455 790,085
CASH FLOWS FROM INVESTING ACTIVITIES:
CAPITAL EXPENDITURES (3,433,445) (746,814)
PROCEEDS FROM SALE OF EQUIPMENT - -
---------- -----------
NET CASH USED IN INVESTING ACTIVITIES (3,433,445) (746,814)
CASH FLOWS FROM FINANCING ACTIVITIES:
NET BORROWINGS (PAYMENTS) UNDER
LINE OF CREDIT 500,000 (189,900)
REPURCHASE OF COMMON STOCK - -
PROCEEDS FROM LONG-TERM OBLIGATIONS - 365,750
PAYMENTS ON LONG-TERM OBLIGATIONS (1,986,450) (1,514,269)
---------- -----------
NET CASH USED IN FINANCING ACTIVITIES (1,486,450) (1,338,419)
EFFECT OF FOREIGN EXCHANGE RATE CHANGES - 7,326
DECREASE IN CASH (1,418,440) (1,287,822)
---------- -----------
CASH AT THE BEGINNING OF THE PERIOD 1,463,336 1,531,526
---------- -----------
CASH AT THE END OF THE PERIOD $ 44,896 $ 243,704
========== ===========
<PAGE>
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION:
CASH PAID (RECEIVED) DURING THE PERIOD FOR:
INTEREST $ 997,796 $ 689,461
INCOME TAXES - (105,876)
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING
AND FINANCING ACTIVITIES:
DIVESTITURE OF NET INVESTMENT IN CIRCUIT
SYSTEMS (INDIA) LIMITED AND CIRCUIT SIGMA
INDIA LIMITED IN SATISFACTION OF CERTAIN
ACCRUED LIABILITIES AND REPURCHASE
OF COMMON STOCK $ - $ 1,270,049
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS
</TABLE>
<PAGE>
CIRCUIT SYSTEMS, INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
1. These interim Consolidated Condensed Financial Statements
should be read in conjunction with the Consolidated Financial
Statements and notes included in the Company's April 30, 1999
Annual Report and Form 10-K.
2. In the opinion of the Company, the accompanying unaudited
condensed consolidated financial information reflects all
adjustments (consisting only of normal recurring accruals)
necessary for a fair presentation of the statements contained
herein.
3. These consolidated statements are presented in accordance with
the requirements of Form 10-Q and consequently may not include
all disclosures normally required by generally accepted
accounting principles normally made in the Company's Annual
Report and Form 10-K.
4. The following table illustrates a reconciliation of the basic
and diluted earnings per share calculations:
Three Months Ended
7/31/99
------------------
Net Loss $(1,156,496)
==========
Shares Per Share Amount
--------- ----------
Basic Loss per Share 3,926,020 $ (.29)
Effect of Dilutive
Securities:
Stock Options N/A N/A
--------- ----------
Diluted Loss per Share 3,926,020 $ (.29)
========= ==========
Three Months Ended
7/31/98
------------------
Net Loss $ (498,959)
==========
Shares Per Share
Amount
--------- ----------
Basic Loss per Share 4,503,296 $ (.11)
Effect of Dilutive
Securities:
Stock Options N/A N/A
--------- ----------
Diluted Loss per Share 4,503,296 $ (.11)
========= ==========
<PAGE>
5. The provisions of Statement of Financial Accounting Standards
No. 130 "Reporting Comprehensive Income" requires that an
entity report, by major components and as a single total, the
change in its net assets during the period from non-
shareholder resources. Total comprehensive income (loss) for
the quarters ended July 31, 1999 and 1998 was $(1,156,496)
and $(417,973), respectively.
6. On September 10, 1999, the Company acquired all of the
outstanding shares of stock of Infovision, Inc.
("Infovision"). Infovision specializes in two markets: 1) the
rendering of consulting and programming services and currently
has approximately 55 full-time consultants, and 2) the
development and licensing of a certain software product, which
is being finalized for general release, which documents a
company's ISO procedures, with internet/intranet capabilities.
The purchase price of $3,750,000 (plus acquisition costs)
consists of cash of $1,440,000, subordinated term notes of
$1,785,000 with installment terms ranging from two to five
years and $525,000 of the Company's common stock. The
Company's president/CEO and his wife own 14% of the Infovision
common stock and affiliates of the president/CEO own 36% of
the Infovision common stock.
Infovision has total assets of approximately $800,000 and
total liabilities of approximately $1,600,000, which includes
a note payable and accrued interest to the Company's
president/CEO of approximately $1,150,000. It is anticipated
that based upon the terms of the purchase agreement,
approximately $950,000 of the note payable and accrued
interest will be converted into Company stock and the
remaining $200,000 will be paid in cash within the next four
months.
The acquisition will be accounted for under the purchase
method. The cash portion of the purchase price will be funded
by a $1,000,000 increase in the Company's installment note to
its commercial lender and the remainder from its line of
credit.
The excess of the purchase price, including direct costs of
acquisition over the net assets acquired of approximately
$4,675,000 will be amortized to operations over 15 years.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This discussion contains forward-looking statements that involve risks
and uncertainties, including Year 2000 matters. The Company's actual
results could differ materially from those discussed herein. Factors
that could cause or contribute to such differences include, but are
not limited to, those discussed herein, as well as those discussed in
the Company's Annual Report on Form 10-K for the year ended April
30, 1999. Reliance on these forward-looking statements reflect
management's analysis only as of the date hereof. The Company
undertakes no obligation to publicly release the results of any
revision to these forward-looking statements which may be made to
reflect events or circumstances after the date hereof or to reflect
the occurrence of unanticipated events. Although the Company believes
the expectations expressed in such forward-looking statements are
based on reasonable assumptions within the bounds of its knowledge of
its business, a number of factors could cause actual results to differ
materially from those expressed in any forward-looking statements,
whether oral or written, made by or on behalf of the Company. Many of
these factors have previously been identified in filings or statements
made by or on behalf of the Company. The Company does not intend to
update these forward-looking statements.
Reference to "IL" hereinafter refers to the Company's Illinois
operations only; reference to "CST" refers to Circuit Systems of
Tennessee; reference to "CSIL" refers to Circuit Systems (India)
Limited; reference to "SVPC" refers to SVPC Circuit Systems, Inc.
Net sales for the quarter ended July 31, 1999, were $23,359,000,
increasing by 3.6% when compared to $22,554,000 for the same quarter
last year. The net sales of IL, CST, and SVPC for fiscal 2000 were
$15,986,000, $3,965,000 and $3,408,000, respectively, as compared to
$16,737,000, $5,205,000 and $0, respectively, for fiscal 1999. The
fiscal 1999 sales also included revenues of $612,000 from CSIL, which
was divested as of July 27, 1998. The increase in sales is due to the
inclusion of SVPC which was partially offset by decreases in IL and
CST sales of $751,000 and $1,240,000, respectively, compared to the
prior year. The decrease in IL and CST sales is due to pricing
decreases and decreased demand from the current customer base. Net
sales to four customers accounted for approximately $12,279,000 or 53%
for the quarter ended July 31, 1999, compared to five customers
representing approximately $ 13,818,000 or 61% of net sales for the
same quarter last year.
Gross profit for the quarter was $1,406,000 or 6.0% of net sales,
compared to $3,052,000 or 13.5% of net sales for the same quarter last
year. The gross profit of IL, CST and SVPC for fiscal 2000 were
$1,853,000, $(413,000) and $(34,000), respectively, as compared to
$2,719,000 and $238,000 for IL and CST, respectively, for fiscal 1999.
CSIL had a gross profit of $95,000 for fiscal 1999. The gross margin
for IL has been impacted by a slight reduction in volume, continued
pricing pressure and an overall increase in occupancy costs with the
addition of a new facility which is not currently in production.
CST's margin has been negatively impacted this quarter due to a
combination of a decrease in sales volume, pricing and product mix.
SVPC is impacted by volume, pricing, a higher than average scrap rate
in May and June and the failure of certain production equipment which
<PAGE>
resulted in an increase in outside service costs. Overall margins
have and will continue to be impacted as a result of continued pricing
pressures driven by Far East competitors. Realignment of certain
manufacturing processes within existing facilities and the
installation of machinery and building improvements in the new
manufacturing facility in IL continued during the first quarter and
will continue through the next quarter.
Sales and marketing and administrative expenses for the quarter were
$2,332,000 or 10.0% of net sales, compared to $1,707,000 or 7.6% of
net sales for the same quarter last year. Operating expenses have
increased primarily due to the acquisition of SVPC, which have
increased these expenses by $670,000 during the current quarter.
IL expenses have increased by $112,000 due to an increase in
customer service personnel, commissions (based on a change in the mix
of commissionable sales), professional fees and bad debt expense. CST
expenses were relatively unchanged from the same period last year.
Operating expenses in fiscal 1999 also included a restructuring charge
of $1,520,000 relating to the reorganization of the Company's
management and plant operations. The majority of the charge related
to severance and other termination benefits for an executive
vice president and five other managers and supervisors. Excluding the
restructuring charge, income from operations was $1,345,000 or 6.0%
of net sales in fiscal 1999 compared to a loss from operations of
$926,000 or 4% of net sales in fiscal 2000.
Other deductions-net were $838,000 for the current quarter compared to
$599,000 for the same quarter last year. Interest expense increased
to $985,000 in fiscal 2000 from $727,000 in fiscal 1999 due to the
SVPC acquisition in December 1998, increased borrowings under the line
of credit to fund additional working capital needs and an increase in
installment obligations to fund equipment purchases and the new
facility expansion. The equity in the earnings of SigmaTron increased
to $42,000 for the current quarter compared to $4,000 for the same
period last year.
The effective income tax rate for the quarter ended July 31, 1999 is
34.5%, compared to the fiscal 1999 effective rate of 35.5%. The lower
effective income tax rates are due to the inability to recognize the
tax benefits of certain state and foreign (in fiscal 1999) net
operating losses.
The net loss and diluted loss per share for the quarter ended July
31, 1999 were $1,156,000 and $.29, respectively, compared to a net
loss and diluted loss per share of $499,000 and $.11, respectively,
for the same period last year.
LIQUIDITY AND CAPITAL RESOURCES
The Company has historically financed its operations, capital
expenditures and debt payment requirements through its line of credit,
other collateralized borrowings and cash generated from operations.
<PAGE>
The Company's line of credit agreement allows for maximum borrowings
of $17,000,000 (as amended) and is limited to 85% of eligible
accounts receivable, 75% of eligible finished goods (not to exceed
$2,500,000), 50% of eligible raw material inventory (not to exceed
$2,000,000) and 60% of the fair market value of the Company's
investment in SigmaTron (not to exceed $2,000,000). At July 31, 1999,
there was approximately $2,150,000 of unused credit available under
the line of credit. The agreement contains certain covenants which
restrict the amount of dividends the Company could pay, capital stock
redemptions, and capital expenditures. Other financial covenants
pertain to the maintenance of specified debt to tangible net worth and
debt service ratios and minimum EBITDA and tangible net worth as
defined. At July 31, 1999, the Company was in violation of its debt
to tangible net worth covenant and is anticipating that it will be
waived by the bank.
During August 1999, the Company converted accounts payable for
equipment purchases into new term obligations of approximately
$1,700,000.
On September 10, 1999, the Company acquired all of the outstanding
shares of stock of Infovision, Inc. ("Infovision"). Infovision
specializes in two markets: 1) the rendering of consulting and
programming services and currently has approximately 55 full-time
consultants, and 2) the development and licensing of a certain
software product, which is being finalized for general release,
which documents a company's ISO procedures, with internet/intranet
capabilities. The purchase price of $3,750,000 (plus acquisition
costs) consists of cash of $1,440,000, subordinated term notes of
$1,785,000 with installment terms ranging from two to five years and
$525,000 of the Company's common stock. The Company's president/CEO
and his wife own 14% of the Infovision common stock and affiliates of
the president/CEO own 36% of the Infovision common stock.
Infovision has total assets of approximately $800,000 and total
liabilities of approximately $1,600,000, which includes a note payable
and accrued interest to the Company's president/CEO of approximately
$1,150,000. It is anticipated that based upon the terms of the
purchase agreement, approximately $950,000 of the note payable and
accrued interest will be converted into Company stock and the
remaining $200,000 will be paid in cash within the next four months.
The acquisition will be accounted for under the purchase method. The
cash portion of the purchase price will be funded by a $1,000,000
increase in the Company's installment note to its commercial lender
and the remainder from its line of credit.
The excess of the purchase price, including direct costs of
acquisition, over the net assets acquired of approximately $4,675,000
will be amortized to operations over 15 years.
The Company has purchase commitments as of July 31, 1999 of
approximately $2,200,000 for future deliveries of machinery and
equipment. The Company intends to finance such purchases through
collateralized borrowings and existing cash flow. The amount of
anticipated capital expenditures will frequently change based on
future changes in business plans.
<PAGE>
The Company's backlog at July 31, 1999 is approximately $24,500,000,
compared to $20,000,000 at July 31, 1998. Backlog is comprised of
orders for which artwork has been received, a delivery date has been
scheduled and the Company anticipates it will manufacture and deliver
the order. The majority of the July 31, 1999 backlog is scheduled to
be shipped within approximately 4 months. The reliability of backlog
as an indicator of future sales varies substantially with the make-up
of customers' orders and the Company's scheduled production and
delivery dates. A significant portion of the Company's backlog at any
time may be subject to cancellation or postponement without penalty.
YEAR 2000 COMPLIANCE
During the first quarter, the Company continued its Year 2000
compliance project as previously discussed in its 1999 Form 10-K.
The Company has substantially completed its internal assessments of
operations, equipment, etc. within each of its plants. The Company
has completed the implementation of its Enterprise Resource Planning
("ERP") II systems within the IL operations and is approximately 75%
complete with the same ERP modules it intends to utilize within its
CST facility. In addition, the Company has selected, purchased and
begun implementation of a human resource/payroll software program.
Management intends to run this program simultaneous with its current
software module within the IL operations during December and intends
to "go live" on January 1, 2000. SVPC and CST currently outsource
this function, but will implement the same program in the first part
of calendar 2000.
The Company has formed its team of officers and managers to develop a
detailed contingency plan to address each of its facilities. The
teams have met on several occasions and intend to complete their
formal plans by the end of October.
The Company has expended approximately $600,000 in external costs and
it anticipates it will spend an additional $250,000 for hardware,
software and implementation costs prior to December 31. These
estimates are subject to change as additional information and
assessments become available.
The Company's assessments and plans to complete its Year 2000 project
are based upon management's best estimates, which were derived
utilizing presently available information and numerous assumptions
about future events such as availability of certain resources, ability
to identify and correct relevant codes and other uncertainties. The
Company believes that its compliance with Year 2000 issues will not
have a material adverse impact on its business, operations or
financial condition.
Item 3. Quantitative and Qualitative Disclosures about Market Risks
Not Applicable.
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a)Exhibits - None
(b)Reports on Form 8-K - None
<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, registrant's principal financial officer,
thereunto duly authorized.
Circuit Systems, Inc.
(registrant)
September 13, 1999 /s/ James E. Robbs
James E. Robbs
Chief Financial Officer
(Principal Financial Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY OF FINANCIAL
INFORMATION EXTRACTED FROM FORM 10 - Q AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> APR-30-2000
<PERIOD-END> JUL-31-1999
<CASH> 44,896
<SECURITIES> 0
<RECEIVABLES> 14,410,178
<ALLOWANCES> 175,000
<INVENTORY> 10,658,145
<CURRENT-ASSETS> 25,889,992
<PP&E> 75,352,966
<DEPRECIATION> 29,802,706
<TOTAL-ASSETS> 82,515,983
<CURRENT-LIABILITIES> 24,686,845
<BONDS> 40,471,655
0
0
<COMMON> 2,191,168
<OTHER-SE> 12,931,133
<TOTAL-LIABILITY-AND-EQUITY> 82,515,983
<SALES> 23,359,056
<TOTAL-REVENUES> 23,459,056
<CGS> 21,952,643
<TOTAL-COSTS> 21,952,643
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 28,167
<INTEREST-EXPENSE> 985,384
<INCOME-PRETAX> (1,764,396)
<INCOME-TAX> (607,900)
<INCOME-CONTINUING> (1,156,496)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,156,496)
<EPS-BASIC> (.29)
<EPS-DILUTED> (.29)
</TABLE>
