FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended March 31, 1995
Commission File Number 0-14299
SECOM GENERAL CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 87-0410875
(State or other jurisdiction of (I.R.S. Employer I.D. Number)
incorporation or organization)
46035 GRAND RIVER AVENUE 48154
(Address of principal executive offices) (Zip Code)
Registrant's telephone number: (810-305-9410)
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 requirement 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 close of the period covered by this report.
Title of Class Number of Shares Outstanding
Common Stock 4,234,700
(par value $.10 per share)
<PAGE>
SECOM GENERAL CORPORATION
FORM 10-Q
INDEX
Page
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets 1
Consolidated Statements of Operations 3
Consolidated Statements of Cash Flows 4
Notes to Consolidated Financial Statements 5
Item 2. Management's Discussion & Analysis of Financial Condition
and Results of Operations 7
PART II OTHER INFORMATION
Item 1. Legal Proceedings 11
Item 2. Changes in Securities 11
Item 3. Defaults Upon Senior Securities 11
Item 4. Submission of Matters to a Vote of Security Holders 11
Item 5. Other Information 11
Item 6. Exhibits and Reports on Form 8-K 11
<PAGE>
ITEM 1. FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
SECOM GENERAL CORPORATION
Consolidated Balance Sheets
ASSETS
MAR 31 1995 SEP 30 1994
<S> <C> <C>
CURRENT ASSETS
Cash $ 8,900 $ 9,300
Accounts receivable, net 4,999,400 4,277,200
Other receivables 292,600 386,000
Inventories 4,924,000 4,070,000
Prepaids 334,600 366,200
Deferred tax asset 314,700 280,000
TOTAL CURRENT ASSETS $10,874,200 $ 9,388,700
Property, plant & equipment, net $15,370,100 $15,728,800
Cost in excess of net assets acquired 2,453,500 2,527,700
Other assets 143,200 181,200
TOTAL ASSETS $28,841,000 $27,826,400
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
SECOM GENERAL CORPORATION
Consolidated Balance Sheets (continued)
LIABILITIES AND STOCKHOLDERS' EQUITY
MAR 31 1995 SEP 30 1994
<S> <C> <C>
CURRENT LIABILITIES
Bank line of credit $ 4,109,800 $ 3,565,700
Current maturities of long term obligations 1,783,300 1,691,000
Trade accounts payable 3,116,700 2,628,400
Accrued expenses 1,547,400 1,184,100
TOTAL CURRENT LIABILITIES $ 10,557,200 $ 9,069,200
Long term obligations, net of current
maturities $ 5,689,300 $ 7,089,300
Deferred tax liabilities 1,775,700 1,778,100
Other liabilities 28,100 53,100
TOTAL LIABILITIES $ 18,050,300 $ 17,989,700
Stockholders' equity common stock, $.10 par
value 10,000,000 shares authorized:
March 31, 1995 - 4,234,700 shares
September 30, 1994 - 3,700,500 shares $ 423,500 $ 370,100
Additional paid-in capital 16,415,400 15,666,900
Accumulated deficit (6,048,200) (6,200,300)
TOTAL STOCKHOLDERS' EQUITY 10,790,700 9,836,700
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 28,841,000 $ 27,826,400
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
SECOM GENERAL CORPORATION
Consolidated Statements of Operations
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
Mar 31 1995 Mar 31 1994 Mar 31 1995 Mar 31 1994
<S> <C> <C> <C> <C>
NET SALES $ 9,863,300 $ 8,242,400 $ 18,160,700 $ 15,811,800
COST OF SALES 7,670,100 6,471,500 14,804,600 12,416,700
GROSS PROFIT 2,193,200 1,770,900 3,356,100 3,395,100
GENERAL AND ADMINISTRATIVE EXPENSES 1,485,400 1,152,200 2,724,700 2,353,000
INCOME 707,800 618,700 631,400 1,042,100
OTHER INCOME (EXPENSE)
Interest (277,600) (226,300) (569,200) (442,800)
Miscellaneous income (6,100) 44,300 53,500 98,800
INCOME BEFORE PROVISION FOR INCOME TAXES 424,100 436,700 115,700 698,100
PROVISION FOR (BENEFIT FROM) INCOME TAXES 48,100 159,700 (37,200) 263,900
NET INCOME $ 376,000 $ 277,000 $ 152,900 $ 434,200
EARNINGS PER COMMON SHARE
Income $ 0.09 $ 0.07 $ 0.04 $ 0.12
NET INCOME $ 0.09 $ 0.07 $ 0.04 $ 0.12
WEIGHTED AVERAGE SHARES OUTSTANDING 4,199,100 3,978,500 4,143,600 3,514,100
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
SECOM GENERAL CORPORATION
Consolidated Statements of Cash Flows
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
Mar 31 1995 Mar 31 1994 Mar 31 1995 Mar 31 1994
<S> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Income (loss) from operations $ 376,000 $ 277,000 $ 152,900 $ 434,200
Adjustments to reconcile net income to
net cash used in operations:
Depreciation and amortization 577,800 475,300 1,055,500 1,022,100
Provision for (benefit from) deferred
taxes 48,000 159,700 (37,200) 263,900
Increase (decrease) in allowance for
doubtful accounts 16,300 33,600 15,000 165,400
(Gain) loss on sales of assets (7,900) 7,400 (8,400) 12,200
Stock issuances to 401(k) plan 31,700 17,000 54,700 56,000
Other noncash expenses 44,300 44,300
Changes in assets and liabilities that
provided (used) cash:
Accounts and other receivables (989,900) (443,700) (680,800) (388,800)
Inventories (570,300) (735,900) (854,000) (641,900)
Prepaids (4,500) (68,300) 31,600 (168,900)
Other assets (11,000) (8,200) (15,900) (44,100)
Accounts payable 618,700 279,600 534,500 (754,100)
Accrued liabilities 306,300 (116,600) 296,600 (69,100)
Other liabilities (16,600) (241,100) (25,000) (283,600)
Net cash provided (used) by discontinued
operations 8,700 20,200 (34,000) 615,300
Net cash provided (used) by operating
activities 427,600 (344,000) 529,800 218,600
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the disposal of property,
plant & equipment 1,500 8,000 2,000 133,000
Collections on notes receivable 2,400 11,700
Capital expenditures (235,900) (106,400) (566,000) (332,700)
Net cash used by discontinued operations 100,000 100,000
Net cash provided (used) in investing
activities (234,400) 4,000 (564,000) (88,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in bank line of credit 55,500 340,900 544,100 (848,300)
Proceeds from long-term notes payable 122,500 700,000 193,800 2,080,000
Refund of restricted cash to bondholders (700,000) (700,000)
Other issuances of common stock (3,200) 133,200 158,500
Payments on long-term notes payable (338,300) (88,200) (645,400) (351,900)
Payments on capital lease obligations (28,700) (45,100) (58,700) (113,700)
Net cash used by discontinued operations (483,300)
Net cash provided from (used in) financing
activities (192,200) 340,800 33,800 (258,700)
NET INCREASE (DECREASE) IN CASH 1,000 800 (400) (128,100)
CASH, BEGINNING OF PERIOD 7,900 20,000 9,300 148,900
CASH, END OF PERIOD $ 8,900 $ 20,800 $ 8,900 $ 20,800
OTHER CASH FLOW INFORMATION - INTEREST PAID $ 269,300 $ 230,400 $ 527,100 $ 443,200
</TABLE>
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<PAGE>
SECOM GENERAL CORPORATION
Notes to Interim Consolidated Financial Statements
NOTE 1. SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES
General
The consolidated financial statements included herein have been prepared by
Secom General Corporation (the "Company") without audit, pursuant to the rules
and regulations of the Securities and Exchange Commission. Certain information
and footnote disclosures normally included in the consolidated financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to such rules and
regulations, although the Company believes that the disclosures are adequate
so that the information presented is not misleading. In the opinion of
management, the financial statements as of March 31, 1995 reflect all
adjustments (normal recurring accruals) which are necessary to present a fair
statement of the results for the period then ended. These financial statements
should be read in conjunction with the audited consolidated financial
statements and notes thereto included in the Company's 10-K for the fiscal
year ended September 30, 1994.
Business
The Company is a publicly-traded holding company with five wholly-owned
subsidiaries that operate in two business segments:
Tooling
o Form Flow, Inc. ("Form Flow")
o L&H Die, Inc. ("L&H Die")
o Micanol, Inc. ("Micanol")
o Triple Tool, Inc. ("Triple Tool")
Metal Parts Forming
o Uniflow Corporation ("Uniflow")
Principles of consolidation
The interim consolidated financial statements include the accounts of the
Company and its subsidiaries. All significant intercompany accounts and
transactions are eliminated.
Reclassifications
Certain reclassifications have been made to the prior period balances for
comparative purposes.
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<PAGE>
Inventories
Inventories are valued at the lower of cost or market. Cost is determined by
the first-in, first-out (FIFO) method.
Earnings (loss) per share
The earnings (loss) per share of common stock is computed by dividing net
income (loss) by the weighted average number of common shares and common
equivalent shares (primarily warrants and options to purchase common stock
that were outstanding during the periods presented).
NOTE 2. INVENTORIES
Inventories at March 31, 1995 and September 30, 1994 are summarized as follows:
<TABLE>
<CAPTION>
MAR. 31, 1995 SEPT. 30, 1994
<S> <C> <C>
Raw materials $ 760,100 $ 639,000
Work-in-process 2,815,100 2,203,000
Finished goods 1,348,800 1,228,000
$4,924,000 $4,070,000
</TABLE>
NOTE 3. LONG TERM DEBT AND LINE OF CREDIT
Long term debt consists of real estate mortgages, equipment term notes and
bonds, equipment capital leases and subordinated loans. Scheduled principal
payments due for the next year are approximately $1.8 million.
In December 1993, the Company received $1 million by issuing a subordinated
note payable. In November 1994, the note was extinguished in connection with
the exercise of a stock warrant.
In addition to long term debt, the Company and its subsidiaries have a $4.5
million bank line of credit collateralized by all accounts receivable and
inventories. Borrowings on the line ($4.11 million and $3.57 million at March
31, 1995 and September 30, 1994 respectively) are limited to stated
percentages of receivables and inventories and are due on demand. The interest
rate of the line is the prime rate plus 1.5%.
NOTE 4. RELATED PARTY TRANSACTIONS
In November 1994, Manubusiness Opportunities, Inc. ("MOI") exercised a stock
warrant to acquire 500,000 shares of common stock at $2.00 per share. The
exercise consideration was made in conjunction with the extinguishment of a $1
million note that was due from the Company to MOI. For additional information
about the Company's relationship with MOI, refer to the Company's Form 10-K
for the year ended September 30, 1994.
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<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Overview
The Company operates in two segments: Metal Parts Forming and Tooling. A
third segment, plastic molded products, was discontinued in fiscal 1993 and
the operating assets of that segment were sold in November 1993.
Consolidated sales for the quarter were $9,863,300 compared to sales of
$8,242,400 in the same quarter of the prior year; this 20% increase resulted
from a 25% increase in the Metal Parts Forming segment and an 11% increase in
the Tooling segment. For the six month year-to-date period, consolidated sales
were $18,160,700 compared to $15,811,800 for the same period last year, an
increase of 15%. Metal Parts Forming posted a 14% sales increase and Tooling a
11% increase for the comparable six month periods. The sales increases for the
periods described above are generally due to higher customer order volume.
Additionally, about one half of the sales increase for metal parts forming was
due to a catch-up of production orders that were past due. Tooling management
expects incoming sales order volume to continue strong for at least the next
few months. Uniflow management expects incoming orders to remain steady and is
augmenting efforts to attain new orders and customers for its press and header
operations.
Net income for the quarter ended March 31, 1995 was $376,000 or 9 cents per
share, compared to net income of $277,000 or 7 cents per share for the same
quarter last year. The increase in net income is primarily attributable to
higher sales for both segments and improved cost control in Metal Parts
Forming. Net income for the six months ended March 31, 1995 was $152,900 or 4
cents per share, compared to $434,200 or 12 cents per share for the same
period last year. The decrease is the result of larger operating losses at the
Triple Tool and Uniflow units.
Segment Review
<TABLE>
<CAPTION>
Metal Parts Forming (Uniflow)
(in thousands)
Three Months Ended Six Months Ended
3/31/95 3/31/94 3/31/95 3/31/94
-------------- -------------- --------------- --------------
Amount % Amount % Amount % Amount %
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net sales $4,902 100.0 $3,927 100.0 $9,098 100.0 $7,997 100.0
Gross profit 748 15.2 410 10.4 825 9.1 948 11.9
Operating expense 491 10.0 314 8.0 952 10.5 650 8.1
Operating profit 257 (5.2) 96 2.4 (127) (1.3) 298 3.7
</TABLE>
The metal parts forming segment is comprised of Uniflow Corporation, which
manufactures metal parts from steel tube, bar and coil using cold forging and
forming techniques. Uniflow's primary parts are wheel bolts, suspension
ball joint housings and tubular transmission gear housings and various cold
headed product for OEMs.
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<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (continued)
Uniflow's sales increased 25% for the quarter ended March 31, 1995 compared to
the prior year quarter primarily due to higher sales of wheel bolts,
suspension housings and tubular transmission parts. About one-half of the
sales increase was the result of catching up on past-due orders. Uniflow's
sales increase of 13.8% for the six months ended March 31, 1995 compared to
the same period last year is primarily the result of the sales increase
realized in the March 31 quarter. Price increases instituted throughout the
year on the suspension housing parts resulted in an average increase of
approximately 15% per part, which was offset by lower unit volume sales of
approximately 10%. Price increases on other parts averaging approximately 5 -
10% generally have not had an adverse affect on sales of those parts. Sales
generated from Uniflow's cold heading deapartment continue to lag, as capacity
usage on three primary machines was approximately 30% for the current quarter
and year-to-date period. Although management is pursuing various sales
opportunties for the cold heading area, it is diffcult to predict a time frame
when sales will significantly increase for parts manufactured from these
machines. Uniflow's backlog, which typically extends for a 3 - 4 month period
has remained steady; however, increasing efficiencies in production have
resulted in Uniflow catching up on orders that were past-due, thereby creating
additional machine time availability. Consequently, additional emphasis is
being placed on attaining new orders for the press and header operations.
Uniflow's gross profit increased to 15% of sales compared to 10% for the
quarter last year. The improved gross profit is primarily the result of lower
direct labor and material costs. Labor costs were lower due to improved
production scheduling and job preparation (tooling, setup, etc.) and material
costs were lower due to less scrap and enhanced quality control. For the six
month period, the gross profit was 9% of sales compared to 12% in the prior
year period. The year-to-date decline was attributable to significantly lower
factory efficiencies experienced in the quarter ended December 31, 1994,
caused by various factors, including management in transition and inadequate
resource allocation. Management believes within a year (or less) it can
achieve a gross profit that approaches 20% by making further improvements in
reducing factory-related and material costs, and obtaining sales in areas of
excess capacity, namely, in the cold heading area.
Operating expense was 10% of sales for the current quarter compared to 8% of
sales in the prior year quarter. The higher operating expense primarily
reflects the addition of management, engineering and quality personnel to a
level that management believes is necessary to adequately manage and support
Uniflow's current and prospective sales order base.
<TABLE>
<CAPTION>
Tooling*
(in thousands)
Three Months Ended Six Months Ended
3/31/95 3/31/94 3/31/95 3/31/94
-------------- -------------- --------------- --------------
Amount % Amount % Amount % Amount %
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net sales $5,520 100.0 $4,979 100.0 $10,255 100.0 $9,257 100.0
Gross profit 1,412 25.6 1,322 26.6 2,465 24.0 2,377 25.7
Operating expense 682 12.4 467 9.4 1,262 12.3 907 9.8
Operating profit 730 13.2 855 17.2 1,203 11.7 1,470 15.9
<FN>
*includes intercompany activity
</TABLE>
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<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (continued)
The tooling segment, comprised of Form Flow, L & H Die, Micanol and Triple
Tool, provide production tooling for the cold heading and precision stamping
industries.
Tooling sales increased 11% in the current quarter compared to the same period
last year, which was principally derived from increased sales at the Form Flow
and Micanol units. Overall, sales order volume for the tooling segment has
remained strong, except at Triple Tool, which has had difficulty generating a
steady volume at a profitable level. Subsequent to March 31, 1995, management
has decided to move approximately $500,000 of equipment (primarily surface
grinders and EDM machines) from Triple Tool to the additional space being
rented by and adjacent to Form Flow. The remaining Triple Tool equipment, with
a net book value of approximately $1 million, will be sold in May 1995. At
this time, management does not expect to record a significant gain or loss on
the sale of the remaining Triple Tool equipment. The decision to downsize
Triple Tool was made based on its continuing unfavorable operating performance
and on management's assessment that to achieve an acceptable sales level would
take an extended time period (one year or more). Management concluded that by
downsizing Triple Tool, with its uncertain sales outlook, it could accelerate
efforts to expand the other tool companies, which have more certain sales
opportunities in hand through existing key customer accounts.
The gross profit percentage for the current quarter was 25.6% of sales
compared to 26.6% of sales in the same quarter last year. For the six month
comparative periods, gross profit was 24% of sales vs. 25.7% of sales. The
decline in gross profit for the comparative quarter and six months was
primarily attributable to unfavorable results at the Triple Tool unit.
Operating expense was 12.4% of sales in the current quarter compared to 9.4%
in the same quarter last year, while for the six month period operating
expense was 12.3% of sales compared to 9.8% for the six month period last
year. The higher operating expense level for both comparative periods
primarily reflect higher personnel costs, legal costs associated with union
negotiations at the Micanol unit and higher than normal customer related
travel. Management anticipates that these costs will decline as a percentage
of sales with the restructuring of Triple Tool and increases in sales volume
at the other tooling entities.
Corporate and Interest Expense
Unallocated corporate overhead was $272,700 for the quarter ended March 31,
1995 compared to $371,600 in the same prior year quarter. The lower corporate
expense reflects a reduction of personnel and other administrative costs and a
more extensive allocation of costs to the subsidiaries that directly benefit
from those expenditures.
Interest expense for the quarter was $277,600 compared to $226,300 for the
same quarter last year. The higher interest cost reflects higher borrowings
and rising interest rates for the comparative periods.
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<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (continued)
FINANCIAL CONDITION AND LIQUIDITY
Net cash provided by operating activities was $427,600 in the current quarter,
which included $658,600 that was used by working capital items, principally
reflecting higher accounts receivable and inventories that resulted from the
higher sales level. The prior year comparative quarter had net cash of
$344,000 used by operating activities, which included $1,314,000 used by
working capital items, as the Company restored working capital items to normal
operating levels that were constrained in prior periods due to cash flow
problems. Net cash provided (used) by operating activities also included
depreciation and amortization of $577,800 and $475,300, for the March 31, 1995
and 1994 quarters, respectively.
For the six month comparative periods, net cash provided by operating
activities was $529,800 and $218,600, respectively. Changes in working capital
items used ($747,000) and ($1,735,200) for the comparative six month periods,
respectively. The current year use of cash by working capital items is
primarly the result of higher sales, while the prior year use of cash by
working capital items primarily reflected the return of various working
capital items to normal levels that had been constrained due to financial
diffculties experienced by the Company in 1993.
Net cash used in investing activities was $234,400 in the current quarter,
which consisted of production tooling and ancillary factory equipment,
compared to $4,000 in the prior year, which included $100,000 provided by
discontinued operations. The six month comparative periods used $564,000 and
$88,000 respectively in investing activities. The current six month period
included equipment for Form Flow's expansion, other equipment for the tool
companies and production tooling for Uniflow, while the prior year six month
period included proceeds from the sale of a Triple Tool press and expenditures
for production tooling at Uniflow.
Net cash provided (used) by financing activities was ($192,200) in the current
quarter and included scheduled principal payments on long term obligations of
$338,300 and proceeds from equipment financing of $122,500. In the prior
year's comparative quarter, cash provided from financing activities was
$340,800, which included a net increase of $340,900 on the bank line of
credit. Availability under the bank line of credit fluctuates with
changes in accounts receivable and inventory levels. The six month comparable
net cash provided from (used in) financing activities was $33,800 and
($258,700). In the current six month period, net cash provided from the line
of credit and long term notes offset scheduled payments on long term notes. In
the prior year six month period, the Company received proceeds of $2.08
million from long term debt, of which $1 million was derived from a
subordinated note and $1.08 million from bond financing. Also in the prior
year, $483,300 net cash was used by discontinued operations (Tri-Tec Plastics
Corp.).
In November 1994, Manubusiness Opportunities, Inc. ("MOI"), acquired 500,000
shares of common stock by exercising a stock warrant in conjunction with the
extinguishment of a $1 million note due from the Company to MOI. MOI is also a
related party (refer to the Company's Form 10-K for additional information
about MOI).
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<PAGE>
PART II OTHER INFORMATION
Item 1. Legal Proceedings
As indicated in the Company's Form 10-K for the year ended September 30, 1994,
there is pending litigation between the Company and (1) Roy McKnight, former
chairman, C.E.O. and director; and (2) Larry McKnight, former director and
officer. Since the filing of the Form 10-K in December 1994, there have been
no further material developments to report concerning these cases.
Item 2. Changes in Securities
Not applicable
Item 3. Defaults Upon Senior Securities
Not applicable
Item 4. Submission of Matters to a Vote of Securities Holders
The Company's Annual Meeting was held on April 25, 1995 at the Sheraton Inn,
Novi, Michigan. The stockholders elected Greg Adamczyk, Bob Clemente, Rocco
Pollifrone, Ken Thompson, Rich Thompson and Dave Marczak to a one year term as
directors of the Company.
Item 5. Other Information
Not applicable.
Item 6. Exhibits and Reports on Form 8-K
Not applicable.
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<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Company has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
SECOM GENERAL CORPORATION
(Registrant)
By: /s/ Robert A. Clemente Date: May 15, 1995
Robert Clemente
Chairman, President & CEO
By: /s/ David J. Marczak Date: May 15, 1995
David J. Marczak
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1995
<PERIOD-END> MAR-31-1995
<CASH> $ 8,900
<SECURITIES> 0
<RECEIVABLES> 5,384,500
<ALLOWANCES> 92,500
<INVENTORY> 4,924,000
<CURRENT-ASSETS> 10,874,200
<PP&E> 21,338,200
<DEPRECIATION> 5,968,100
<TOTAL-ASSETS> 28,841,000
<CURRENT-LIABILITIES> 10,557,200
<BONDS> 2,500,000
<COMMON> 423,500
0
0
<OTHER-SE> 10,367,200
<TOTAL-LIABILITY-AND-EQUITY> 28,841,000
<SALES> 18,160,700
<TOTAL-REVENUES> 18,160,700
<CGS> 14,804,600
<TOTAL-COSTS> 17,529,300
<OTHER-EXPENSES> 53,500
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 569,200
<INCOME-PRETAX> 115,700
<INCOME-TAX> (37,200)
<INCOME-CONTINUING> 152,900
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 152,900
<EPS-PRIMARY> 0.04
<EPS-DILUTED> 0.04
</TABLE>
