<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For The Quarterly Period Ended March 31, 1996
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 NO. 0-15098
JONES MEDICAL INDUSTRIES, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE 43-1229854
(STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER IDENTIFICATION NO.)
INCORPORATION OR ORGANIZATION)
1945 CRAIG ROAD, ST. LOUIS, MISSOURI 63146
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (314) 576-6100
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 .
--------- --------
NUMBER OF SHARES OUTSTANDING OF REGISTRANT'S COMMON STOCK AS OF APRIL 29,
1996: 16,645,563
PAGE 1 OF 17
<PAGE> 2
JONES MEDICAL INDUSTRIES, INC.
<TABLE>
INDEX
-----
<CAPTION>
Part I - Financial Information PAGE
NUMBER
------
<S> <C>
Item 1. Financial Statements
Condensed Consolidated Balance Sheets -
December 31, 1995 and March 31, 1996 3
Condensed Consolidated Statements of Income -
three months ended March 31, 1995 and 1996 4
Condensed Consolidated Statements of Stockholders'
Equity - three months ended March 31, 1995 and 1996 5
Condensed Consolidated Statements of Cash Flows -
three months ended March 31, 1995 and 1996 6 - 7
Notes to Condensed Consolidated Financial
Statements 8 - 11
Item 2. Management's Discussion and Analysis
of Results of Operations and Financial
Condition 12 - 15
Part II - Other Information
Item 1. Exhibits and reports on Form 8K 16
Signatures 17
</TABLE>
- 2 -
<PAGE> 3
<TABLE>
JONES MEDICAL INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
<CAPTION>
December 31, December 31,
1995 1996
------------ ------------
ASSETS (Unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 5,410,601 $ 7,076,736
Accounts receivable, less allowance for doubtful accounts of
$128,712 at December 31, 1995 and $139,212 at March 31, 1996 7,132,458 7,185,654
Inventories 10,746,630 12,442,609
Deferred income taxes 933,790 933,790
Prepaid expenses and other 788,670 1,310,097
----------- ------------
Total current assets 25,012,149 28,948,886
Net property, plant and equipment 15,442,617 15,788,185
Intangible assets, net 32,935,165 58,447,613
Other assets 1,306,712 1,800,799
----------- ------------
$74,696,643 $104,985,483
=========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 4,775,141 $ 4,272,955
Current portion of long-term debt 5,633,330 31,633,330
Income taxes payable 871,401 2,613,351
Dividends payable 283,605 357,808
----------- ------------
Total current liabilities 11,563,477 38,877,444
Long-term debt 9,124,986 8,580,543
Deferred income taxes 4,118,046 4,118,047
Contingencies and commitments (Note 8) - -
Stockholders' equity:
Preferred stock, $.01 par value; 1,000,000
shares authorized, 1,056 issued and outstanding
at December 31, 1995 and 281 at March 31, 1996 10 2
Common stock, $.04 par value; 30,000,000
authorized, 14,178,129 issued and outstanding
at December 31, 1995 and 14,336,713 at March 31, 1996 567,126 573,469
Contributed capital (including effects of
unearned compensation and related amortization) 19,544,584 20,139,958
Retained earnings 29,778,414 32,696,020
----------- ------------
Total stockholders' equity 49,890,134 53,409,449
----------- ------------
$74,696,643 $104,985,483
=========== ============
See accompanying notes.
</TABLE>
- 3 -
<PAGE> 4
JONES MEDICAL INDUSTRIES, INC.
<TABLE>
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<CAPTION>
Three Months Ended
March 31,
---------------------------
1995 1996
---- ----
<S> <C> <C>
Sales $11,458,547 $17,377,123
Cost of sales 5,267,494 7,834,535
----------- -----------
Gross profit on sales 6,191,053 9,542,588
Selling, general and administrative expenses:
Selling 1,901,290 2,374,184
General and administrative 827,751 1,158,132
Amortization 313,920 529,301
----------- -----------
Total selling, general and administrative
expenses 3,042,961 4,061,617
----------- -----------
Operating income 3,148,092 5,480,971
Other income (expense)
Interest income 50,373 63,725
Interest expense (50,065) (261,421)
Other expense (312) (367)
----------- -----------
Income before income taxes 3,148,088 5,282,908
Income taxes 1,101,830 2,007,505
----------- -----------
Net income $ 2,046,258 $ 3,275,403
=========== ===========
Average shares outstanding 14,271,849 14,998,325
Earnings per share $ .14 $ .22
=========== ===========
See accompanying notes.
</TABLE>
- 4 -
<PAGE> 5
<TABLE>
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(UNAUDITED)
Three Months Ended March 31, 1995 and 1996
<CAPTION>
Number of shares Preferred Common Contributed Retained
Preferred Common Stock Stock Capital Earnings Total
--------- ------ --------- ------ ----------- -------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at December 31, 1994 99,919 13,846,519 $999 $553,862 $19,454,811 $21,480,692 $41,490,364
Exercise of stock options - 1,800 - 72 3,828 - 3,900
Restricted Stock:
Amortization of unearned
compensation - - - - 7,500 - 7,500
Net income - - - - - 2,046,258 2,046,258
Cash dividend declared - common
stock ($.017 per share) - - - - - (228,621) (228,621)
Cash dividend declared - preferred
stock ($.04 per share) - - - - - (3,996) (3,996)
------ ---------- ---- -------- ----------- ----------- -----------
Balance at March 31, 1995 99,919 13,848,319 $999 $553,934 $19,466,139 $23,294,333 $43,315,405
====== ========== ==== ======== =========== =========== ===========
Balance at December 31, 1995 1,056 14,178,129 $10 $567,126 $19,544,584 $29,778,414 $49,890,134
Exercise of stock options - 156,550 - 6,262 587,947 - 594,209
Restricted stock:
Amortization of unearned
compensation - - - - 7,500 - 7,500
Conversion of preferred (775) 2,034 (8) 81 (73) - -
Net income - - - - - 3,275,403 3,275,403
Cash dividend declared -
common stock ($.025 per
share) - - - - - (357,786) (357,786)
Cash dividend declared -
preferred stock ($.04 per
share) - - - - - (11) (11)
------ ---------- ---- -------- ----------- ----------- -----------
Balance at March 31, 1996 281 14,336,713 $ 2 $573,469 $20,139,958 $32,696,020 $53,409,449
====== ========== ==== ======== =========== =========== ===========
See accompanying notes.
</TABLE>
- 5 -
<PAGE> 6
JONES MEDICAL INDUSTRIES, INC.
<TABLE>
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended March 31, 1995 and 1996
<CAPTION>
Cash flows used from operating activities: 1995 1996
---- ----
<S> <C> <C>
Net income $ 2,046,258 $ 3,275,403
Non-cash adjustments:
Depreciation and amortization 523,317 835,740
Provision for uncollectibles 9,000 10,500
Loss on asset sales - 14,043
Change in assets and liabilities:
Accounts receivable (478,725) (63,696)
Inventories (1,638,909) (1,695,979)
Prepaid expenses and other assets (317,173) (1,015,514)
Accounts payable and accrued expenses 1,006,077 (502,186)
Income taxes payable 1,085,452 1,741,950
----------- -----------
Net cash from operating activities 2,235,297 2,600,261
----------- -----------
Cash flows used for investing activities:
Proceeds from sale of assets - 179,348
Acquisition of Tapazole(R) - (8,041,750)
Additions to property, plant and equipment (341,007) (837,885)
----------- -----------
Net cash used for investing activities (341,007) (8,700,287)
----------- -----------
Cash flows from (used for) financing activities:
Proceeds from debt - 8,000,000
Repayment of long-term debt (3,911,240) (544,443)
Payment of dividends (234,758) (283,605)
Proceeds from exercise of stock options 11,400 594,209
----------- -----------
Net cash from (used for) financing activities (4,134,598) 7,766,161
----------- -----------
Increase (decrease) in cash and temporary investments (2,240,308) 1,666,135
Cash and temporary investments, beginning of period 7,031,765 5,410,601
----------- -----------
Cash and temporary investments, end of period $ 4,791,457 $ 7,076,736
=========== ===========
See accompanying notes.
</TABLE>
- 6 -
<PAGE> 7
JONES MEDICAL INDUSTRIES, INC.
<TABLE>
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CON'T)
(UNAUDITED)
Three Months Ended March 31, 1995 and 1996
Supplemental Disclosures of Cash Flow Information:
- --------------------------------------------------
<CAPTION>
Cash paid during the three months for: 1995 1996
---- ----
<S> <C> <C>
Interest $ 50,065 $ 203,849
=========== ===========
Income taxes $ - $ 266,056
=========== ===========
See accompanying notes.
</TABLE>
- 7 -
<PAGE> 8
JONES MEDICAL INDUSTRIES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1995 AND 1996
1. GENERAL
-------
The unaudited interim financial information reflects all
adjustments (consisting only of normal recurring accruals) which
management considers necessary for a fair presentation of the
results of operations for such periods and is subject to year
end adjustments. Certain footnote disclosures normally included
in financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted
from the unaudited interim financial information as permitted by
rules and regulations of the Securities and Exchange Commission.
Management believes that the disclosures made are adequate to
make the information presented not misleading. The results for
the interim periods are not necessarily indicative of results
for the full year. It is suggested that these financial
statements be read in conjunction with the Company's audited
financial statements and notes thereto for the year ended
December 31, 1995, included in the 1995 Annual Report.
2. PRINCIPLES OF CONSOLIDATION
---------------------------
The consolidated financial statements include the accounts of
the Company and its wholly-owned subsidiaries. All significant
inter-company accounts and transactions have been eliminated.
3. EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE
-----------------------------------------------
Earnings per common and common equivalent share are based on the
weighted average number of shares of common stock and common
stock equivalents outstanding during the period (14,271,849 for
the three months ended March 31, 1995 and 14,998,325 for March
31, 1996.) The computation assumes that outstanding stock
options were exercised and the proceeds used to purchase common
shares. It also assumes that the preferred stock was converted
to shares of common stock.
8
<PAGE> 9
4. INVENTORIES
-----------
Inventories are valued at the lower of cost on a first-in,
first-out basis or market.
Inventories are comprised as follows:
<TABLE>
<CAPTION>
December 31, March 31,
1995 1996
(Unaudited)
------------ -----------
<S> <C> <C>
Raw material $ 4,870,595 $ 4,964,717
Work-in-process 1,099,582 1,810,350
Finished goods 4,776,453 5,667,542
----------- -----------
$10,746,630 $12,442,609
=========== ===========
</TABLE>
5. PROPERTY, PLANT AND EQUIPMENT
-----------------------------
Property, plant and equipment are as follows:
<TABLE>
<CAPTION>
December 31, March 31,
1995 1996
(Unaudited)
------------ -----------
<S> <C> <C>
Land $ 2,158,144 $ 2,158,144
Building and improvements 8,558,253 8,611,880
Equipment and furniture 7,409,091 7,998,346
Automobiles 381,984 381,984
----------- -----------
18,507,472 19,150,354
Less accumulated depreciation and
amortization 3,064,855 3,362,169
----------- -----------
$15,442,617 $15,788,185
=========== ===========
</TABLE>
9
<PAGE> 10
6. INTANGIBLE ASSETS
-----------------
Intangible assets are as follows:
<TABLE>
<CAPTION>
December 31, March 31,
1995 1996
(Unaudited)
------------ -----------
<S> <C> <C>
Distribution systems, trademarks
and licenses $24,336,110 $48,336,110
Customer list 6,084,967 6,084,967
Restrictive covenants and other
intangibles 3,142,328 5,184,078
Goodwill 4,255,298 4,255,298
----------- -----------
37,818,703 63,860,453
Less accumulated amortization 4,883,538 5,412,840
----------- -----------
$32,935,165 $58,447,613
=========== ===========
</TABLE>
7. INCOME TAXES
------------
The provisions for income taxes at March 31, 1995 and 1996 of
$1,101,830 and $2,007,505, respectively, are based on an
estimated effective annual income tax rate of 35.0% and 38.0%,
respectively.
8. CONTINGENCIES
-------------
The Company currently carries product liability coverage of
$10,000,000 per occurrence and $10,000,000 in the aggregate on
a "claims made" basis. There is no assurance that the Company's
present insurance will cover any potential claims that may be
asserted in the future. In addition, the Company is subject to
legal proceedings and claims which arise in the ordinary course
of business.
9. COMMON STOCK SPLIT
------------------
On February 7, 1996, the Board of Directors declared a three-
for-two stock split effected in the form of a stock dividend to
be paid on March 1, 1996 to holders of record on February 23,
1996. The financial statements, including stock option, share
and per share data, have been retroactively adjusted to reflect
the split.
10
<PAGE> 11
10. ACQUISITION
-----------
TAPAZOLE(R)
-----------
On March 18 1996, the Company entered into a perpetual
licensing agreement with Eli Lilly and Company ("Lilly") for
the exclusive United States marketing rights to the
Tapazole(R) product line. The purchase price of approximately
$26.0 million was financed short-term with bank debt of $8.7
million and Lilly financing of $17.3 million for six months.
Approximately $24.0 million was allocated to the perpetual
license with an amortizable life of 30 years, and $2.0
milllion was allocated to a restrictive covenant with an
amortizable life of 10 years. In connection with the
acquisition, the Company entered into a manufacturing
agreement with Lilly whereby Lilly will manufacture and supply
the Company with Tapazole(R) for a period of at least ten
years. In addition, the Company agreed to pay Lilly royalties
totalling 5% of net sales of Tapazole(R) for a period of ten
years.
11. COMMON STOCK OFFERING AND SUBSEQUENT EVENTS
-------------------------------------------
On February 26, 1996, the Company filed with the Securities
and Exchange Commission a Registration Statement on Form S-3
relating to the offering of 2,300,000 shares of its Common
Stock. The proceeds from the equity offering will be used for
repayment of certain indebtedness and for general corporate
purposes, including the possible acquisition of product lines
or businesses.
On April 3, 1996 and April 23, 1996 the Company sold a total
of 2,300,000 shares of common stock as contemplated in the
Company's Registration on Form S-3. Net proceeds of the
common stock offering were approximately $75,000,000.
11
<PAGE> 12
PART I - FINANCIAL INFORMATION
------------------------------
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
- --------------------------------------------------------------------------
FINANCIAL CONDITION
- -------------------
The following table sets forth, for the two interim periods indicated, the
percentages which certain components of the Consolidated Statements of Income
bear to product net sales and the percentage change of such components (based on
aggregate dollars) as compared to the prior year.
<TABLE>
<CAPTION>
PERCENTAGE
INCREASE
(DECREASE)
AGGREGATE
THREE MONTHS ENDED DOLLAR
MARCH 31, AMOUNT
------------------ ----------
1995 1996
---- ----
<S> <C> <C> <C>
Sales 100.0% 100.0% 51.7%
Cost of sales 46.0 45.1 48.7
Gross profit margin 54.0 54.9 54.1
Selling, general and administrative expenses:
Selling 16.6 13.7 24.9
General and administrative 7.2 6.7 39.9
Amortization 2.7 3.0 68.6
Total selling, general and
administrative expenses 26.6 23.4 33.5
Operating income 27.5 31.5 74.1
Interest income 0.4 0.4 26.5
Interest (expense) (0.4) (1.5) 422.2
Other (expense) 0.0 0.0 17.6
Income before income taxes 27.5 30.4 67.8
Provision for income taxes 9.6 11.6 82.2
Net income 17.9 18.8 60.1
</TABLE>
12
<PAGE> 13
RESULTS OF OPERATIONS
SALES
- -----
The following summarizes approximate sales activity by product
category for the first quarter ended March 31;
<TABLE>
<CAPTION>
SALES BY PRODUCT CATEGORY
1995 % 1996 %
---- - ---- -
<S> <C> <C> <C> <C>
Pharmaceutical products $ 4,560,000 39.8 $ 8,850,000 50.9
Vitamin and Nutritional
Supplement products 6,899,000 60.2 8,527,000 49.1
----------- ----- ----------- -----
Total Sales $11,459,000 100.0 $17,377,000 100.0
=========== ===== =========== =====
</TABLE>
Sales for the first quarter ended March 31, 1996 increased 51.7%
compared to the first quarter ended March 31, 1995. Sales increased
due to higher pharmaceutical sales resulting from inclusion of
Brevital(R) sales in 1996, seven days of Tapazole(R) sales
(purchased March 18, 1996) and a full quarter of sales to Johnson
and Johnson compared to two weeks of sales in 1995.
Sales of pharmaceutical products increased 94.1% for first quarter
of 1996. This increase is attributed to an 82.5% increase in
branded pharmaceuticals and an increase of 154.0% in contract
manufacturing.
Sales of vitamin and nutritional supplement products increased
23.6%. The Bronson product line was up 16.3% with the MD
Pharmaceutical product line (sold exclusively in military
commissaries) decreasing 22.3%. Contract vitamins increased 95.7%
due to increased sales efforts.
GROSS PROFIT
- ------------
Gross profit during the first quarter of 1996 in the aggregate,
increased 54.1% over the first quarter of 1995. As a percentage of
sales, margins increased from 54.0% in the 1995 first quarter to
54.9% in the 1996 first quarter as a result of sales of higher
margin products.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
- --------------------------------------------
Selling expenses increased 24.9% during the first quarter of 1996 compared to
the same quarter of 1995, as a result of additional royalties paid on
Brevital(R) and Tapazole(R), the formation of a professional services department
established to service medical professionals for the Bronson pharmaceutical
line, increased catalogue costs due to larger mailings and seven hospital
salesmen being
13
<PAGE> 14
added, thereby increasing the critical care sales force from ten at year-end
1995, to seventeen at March 31, 1996. As a percentage of sales these expenses
were approximately 3% lower from first quarter, 1995.
General and administrative expenses increased 39.9% in the aggregate
during the first quarter of 1996 due to annual salary increases and
the implementation of a new computer system. However, these
expenses were down modestly, as a percentage of sales, during the
first quarter of 1996 from the 1995 first quarter.
Amortization expenses associated with intangible assets included in
selling, general and administrative expenses increased 68.6% during
the first quarter of 1996 as compared to the first quarter of 1995
as a result of additional amortization on intangible assets acquired
in connection with the Brevital(R) and Tapazole(R) acquisitions.
OPERATING INCOME
- ----------------
Operating income during the first quarter of 1996 increased 74.1%,
in the aggregate, over the first quarter of 1995 as a result of an
increase in gross profits and a reduction of operating expenses.
For the same reason operating income increased, as a percentage of
sales, during the 1996 first quarter over the 1995 first quarter.
OTHER INCOME (EXPENSES)
- -----------------------
Interest income was up 26.5% during the first quarter of 1996 due to
larger cash balances on hand as compared to those of the 1995 first
quarter. Interest expense was up 422.2% due to the increase in both
short and long term debt.
INCOME TAXES
- ------------
The provision for income taxes for the first quarter of 1996
increased due to the effective tax rate increasing to 38% from 35%
for the same period of 1995. The increase in the effective tax rate
is expected due to the additional percent on profits over
$10,000,000 as well as the possibility of less tax credits.
NET INCOME
- ----------
Earnings per share increased 57% during the first quarter of 1996 to
$.22 per share on 14,998,325 average shares outstanding compared to
$.14 for the first quarter of 1995, on 14,271,849 average shares
outstanding during the 1995 first quarter.
14
<PAGE> 15
FINANCIAL CONDITION
- -------------------
Balance Sheet Information
- -------------------------
At March 31, 1996 the Company's current ratio declined to 0.74:1
from 2.2:1 at December 31, 1995 due to the short term debt
associated with the Tapazole(R) acquisition on March 18, 1996. For
the same reason working capital declined from $13.4 million at
December 31, 1995 to a negative $10.0 million at March 31, 1996.
Debt as a percentage of equity increased from 29.6% at December 31,
1995 to 75.3% at March 31, 1996.
The dramatic change in these ratios from December 31, 1995 to March
31, 1996 is due to the short term debt associated with the
Tapazole(R) acquisition of March 18, 1996. On March 28, 1996 a
secondary offering was completed with proceeds of approximately
$75.0 million, net of expenses, being received in April, 1996.
Therefore, in April these ratios are significantly improved.
Inventories were up at March 31, 1996 over December 31, 1995
principally from the purchase of Tapazole(R) inventory from Eli
Lilly and Company and the replacing of lower inventory levels due to
customer year-end loading of inventory.
Accounts receivable decreased in days outstanding from 46 days at
December 31, 1995 to 37.8 days at March 31, 1996.
15
<PAGE> 16
PART II - OTHER INFORMATION
---------------------------
ITEM 1. LEGAL PROCEEDINGS
- --------------------------
None.
ITEM 6. EXHIBITS AND REPORTS ON FROM 8-K
- -----------------------------------------
EXHIBITS
- --------
27. Financial Data Schedule
REPORTS ON FORM 8-K
- -------------------
The Registrant filed two (2) Current Reports on Form 8-K during the
quarter for which this Report on Form 10-Q is filed. The first Form
8-K was dated March 7, 1996 and reported, pursuant to Item 5 of Form
8-K, the Registrant's entering into an Agreement in Principle to
acquire from Eli Lilly and Company, an exclusive license to market
and distribute Tapazole(R) in the United States. The second Form
8-K was dated March 18, 1996 and reported, pursuant to Item 2 of Form
8-K, the Registrant's acquisition from Eli Lilly and Company of an
exclusive license to market and distribute Tapazole(R) in the United
States pursuant to a License Agreement dated as of March 18, 1996.
No financial statements were required to be submitted with the
Current Reports on Form 8-K.
16
<PAGE> 17
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.
JONES MEDICAL INDUSTRIES, INC.
Date: May 10, 1996 By: /s/ Dennis M. Jones
----------------------- -----------------------------------
Dennis M. Jones, President
Date: May 10, 1996 By: /s/ Judith A. Jones
----------------------- -----------------------------------
Judith A. Jones,
Executive Vice President and
Principal Financial and
Accounting Officer
17
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 7,076,736
<SECURITIES> 0
<RECEIVABLES> 7,324,866
<ALLOWANCES> 139,212
<INVENTORY> 12,442,609
<CURRENT-ASSETS> 28,948,886
<PP&E> 19,150,354
<DEPRECIATION> 3,362,169
<TOTAL-ASSETS> 104,985,483
<CURRENT-LIABILITIES> 38,877,444
<BONDS> 8,580,543
<COMMON> 573,469
2
0
<OTHER-SE> 52,835,978
<TOTAL-LIABILITY-AND-EQUITY> 104,985,483
<SALES> 17,377,123
<TOTAL-REVENUES> 17,377,123
<CGS> 7,834,535
<TOTAL-COSTS> 7,834,535
<OTHER-EXPENSES> 367
<LOSS-PROVISION> 10,500
<INTEREST-EXPENSE> 261,421
<INCOME-PRETAX> 5,282,908
<INCOME-TAX> 2,007,505
<INCOME-CONTINUING> 3,275,403
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,275,403
<EPS-PRIMARY> .22
<EPS-DILUTED> .22
</TABLE>
