THIS CONFORMING PAPER FORMAT DOCUMENT IS BEING SUBMITTED
PURSUANT TO RULE 901(d) OF REGULATION S-T
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 September 30, 1998
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 0-16345
SED International Holdings, Inc.
(Exact name of Registrant as specified in its charter)
DELAWARE 22-2715444
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
4916 North Royal Atlanta Drive, Tucker, Georgia 30085
(Address of principal executive offices) (Zip code)
(770) 491-8962
(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 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
At October 20, 1998, there were 9,608,703 shares of Common Stock, $.01 par
value, outstanding.
<PAGE>
SED International Holdings, Inc.
And Subsidiaries
INDEX
Page
PART I. FINANCIAL INFORMATION
Item 1 - Financial Statements:
Condensed Consolidated Balance Sheets 2
Condensed Consolidated Statements of Earnings 3
Condensed Consolidated Statements of Stockholders'
Equity 4
Condensed Consolidated Statements of Cash Flows 5
Notes to Condensed Consolidated Financial
Statements 6
Item 2 - Management's Discussion and Analysis of
Financial Condition and Results of Operations 7-10
PART II. OTHER INFORMATION
Item 1 - Legal Proceedings 11
Item 2 - Changes in Securities 11
Item 3 - Default 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>
<TABLE>
ITEM 1: FINANCIAL STATEMENTS
SED International Holdings, Inc.
And Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, June 30,
ASSETS 1998 1998
(Unaudited)
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 11,323,000 $ 2,693,000
Trade accounts receivable, net 70,207,000 86,298,000
Inventories 65,833,000 141,196,000
Prepaid income taxes -- 3,489,000
Deferred income taxes 1,827,000 1,827,000
Other current assets 2,004,000 1,528,000
------------ ------------
TOTAL CURRENT ASSETS 151,194,000 237,031,000
PROPERTY AND EQUIPMENT, net 9,321,000 9,490,000
INTANGIBLES, net 19,827,000 20,044,000
------------ ------------
$180,342,000 $266,565,000
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade accounts payable $ 71,204,000 $122,959,000
Accrued liabilities 6,965,000 6,331,000
Income taxes payable 60,000 --
------------ ------------
TOTAL CURRENT LIABILITIES 78,229,000 129,290,000
REVOLVING BANK DEBT -- 31,000,000
STOCKHOLDERS' EQUITY:
Preferred Stock
129,500 shares authorized, none issued
Common stock, $.01 par value; 100,000,000 shares
authorized; 10,857,711 shares (September 30, 1998)
and 10,862,211 shares (June 30, 1998) issued 108,000 108,000
Additional paid-in capital 70,631,000 70,659,000
Retained earnings 39,182,000 38,840,000
Cumulative translation cost (552,000) (119,000)
Treasury stock, at cost, 1,249,008 shares
(September 30, 1998) and 345,608 shares
(June 30, 1998) (7,017,000) (2,937,000)
Prepaid compensation - stock awards (239,000) (276,000)
------------ ------------
102,113,000 106,275,000
------------ ------------
$180,342,000 $266,565,000
============ ============
</TABLE>
<PAGE>
<TABLE>
SED International Holdings, Inc.
And Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
Three Months Ended
September 30,
1998 1997
<S> <C> <C>
NET SALES $217,013,000 $214,032,000
------------ ------------
COST AND EXPENSES
Including buying and occupancy expenses 205,788,000 202,425,000
Selling, general, and administrative 10,124,000 6,774,000
Start-up expenses -- 1,400,000
------------ ------------
215,912,000 210,599,000
------------ ------------
OPERATING INCOME 1,101,000 3,433,000
INTEREST EXPENSE 319,000 1,124,000
------------ ------------
EARNINGS BEFORE INCOME TAXES 782,000 2,309,000
INCOME TAXES 440,000 900,000
------------ ------------
NET EARNINGS $ 342,000 $ 1,409,000
============ ============
NET EARNINGS PER COMMON SHARE:
Basic $.03 $.20
Diluted .03 .18
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic 10,253,000 7,238,000
Diluted 10,296,000 7,940,000
</TABLE>
<PAGE>
<TABLE>
SED International Holdings, Inc.
And Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS
OF STOCKHOLDERS' EQUITY
(Unaudited)
Common Stock Additional Cumulative Prepaid
Par Paid-In Retained Translation Treasury Stock Compensation
Shares Value Capital Earnings Adjustment Shares Cost Stock Awards
<S> <C> <C> <C> <C> <C> <C> <C> <C>
BALANCE,
June 30, 1998 10,862,211 $108,000 $70,659,000 $38,840,000 $(119,000) 345,608 $(2,937,000) $(276,000)
Amortization of
stock awards 6,000
Stock awards
cancelled (4,900) (31,000) 31,000
Stock options
exercised 400 3,000
Treasury stock
purchased 903,400 (4,080,000)
Net earnings 342,000
Translation
adjustments (433,000)
---------- -------- ----------- ----------- --------- --------- ----------- ---------
BALANCE,
September 30, 1998 10,857,711 $108,000 $70,631,000 $39,182,000 $(552,000) 1,249,008 $(7,017,000) $(239,000)
========== ======== =========== =========== ========= ========= =========== =========
</TABLE>
See notes to condensed consolidated financial statements.
<PAGE>
<TABLE>
SED International Holdings, Inc.
And Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
September 30,
1998 1997
<S> <C> <C>
OPERATING ACTIVITIES:
Net earnings $ 342,000 $ 1,409,000
Adjustments to reconcile net earnings
to net cash provided by
(used in) operating activities
Depreciation and amortization 889,000 457,000
Compensation - stock awards 6,000 27,000
Changes in assets and liabilities 43,406,000 (18,046,000)
----------- -----------
Net cash provided by (used in)
operating activities 44,643,000 (16,153,000)
----------- -----------
INVESTING ACTIVITIES:
Purchases of equipment, net (503,000) (1,304,000)
Purchase of distribution rights -- (199,000)
----------- ----------
Net cash used in investing activities (503,000) (1,503,000)
----------- ----------
FINANCING ACTIVITIES:
Borrowings (payments) under line of credit, net (31,000,000) 18,000,000
Proceeds from issuance of common stock, net 3,000 391,000
Purchase of treasury stock (4,080,000) (77,000)
----------- ----------
Net cash provided by (used in)
financing activities (35,077,000) 18,314,000
EFFECT OF EXCHANGE RATE CHANGES ON CASH (433,000) --
----------- ----------
NET INCREASE IN CASH AND CASH EQUIVALENTS 8,630,000 658,000
CASH AND CASH EQUIVALENTS, beginning of period 2,693,000 783,000
------------ -----------
CASH AND CASH EQUIVALENTS, end of period $ 11,323,000 $ 1,441,000
============ ===========
</TABLE>
<PAGE>
SED International Holdings, Inc.
And Subsidiaries
NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Three Months Ended September 30, 1998 and 1997
A. Interim Financial Statements:
The accompanying condensed consolidated financial statements of SED
International Holdings, Inc. and its wholly-owned subsidiaries, SED
International, Inc., SED Magna Distribuidora Ltda., SED Magna (Miami),
Inc. and SED International de Colombia Ltda. (collectively, the
"Company") have been prepared without audit. In the opinion of
management, all adjustments (which include only normal recurring
adjustments) considered necessary for a fair presentation have been
included. All intercompany accounts and transactions have been
eliminated. The results of operations for the three months ended
September 30, 1998 are not necessarily indicative of the operating
results for the full year.
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 financial statements be read in conjunction with the
consolidated financial statements and notes thereto included in the
Company's Annual Report on Form 10-K, filed with the Securities and
Exchange Commission for the year ended June 30, 1998.
B. Start-up Expense:
As a result of a transaction with Globelle, Inc. ("Globelle") in June
1997, the Company acquired the distribution rights for certain
significant vendor lines in the United States and subsequently hired
36 experienced sales people formerly with Globelle. Because the
Globelle transaction was not an acquisition of a going business
concern, a transition period followed the close of that transaction
during which the newly-hired sales people became acclimated to the
Company's policies, procedures, and product offerings, and the
inventory of new product lines became stocked at the Company's
warehouses. As a result of this transaction, the Company incurred $1.4
million of start-up expenses during the first fiscal quarter ended
September 30, 1997 reflecting costs associated with the hiring of new
sales people, opening new sales offices and other transition expenses.
C. Stockholders' Equity:
Between September 3, 1998 and September 11, 1998, the Company
repurchased 903,400 shares of its common stock for $4,080,000 in open
market transactions under a previously announced buy-back program.
D. Earnings Per Share:
Beginning with the quarter ended December 31, 1997, earnings per share
("EPS") is computed in accordance with Statement of Financial
Accounting Standards Number ("SFAS") 128. All prior period EPS data
has been restated to conform with SFAS 128. For the periods
presented, the Company's diluted EPS differs from basic EPS solely
from the effect of dilutive stock options.
<PAGE>
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
CONSOLIDATED RESULTS OF OPERATIONS
Three Months Ended September 30, 1998 Compared to Three Months Ended
September 30, 1997
Net sales increased 1.4% or $3.0 million, to $217.0 million in the first
quarter ended September 30, 1998 compared to $214.0 million in the first
quarter ended September 30, 1997. This growth resulted from an increase in
United States domestic net sales, a decline in net sales to customers for
export principally in Latin America and a net increase in in-country net
sales for Brazil (Magna Distribuidora Ltda. acquired in December, 1997 and
operates as SED Magna Distribuidora Ltda.) and Colombia (commenced
operations in May, 1998 and operates as SED International de Colombia
Ltda.). Net sales in the United States increased approximately 14.8%, or
$18.0 million, to $139.3 million in the first quarter ended September 30,
1998 compared to $121.3 million in the first quarter ended September 30,
1997, primarily due to increased sales of printers and computer processors
which was offset by lower sales of mass storage products. Net sales for
export and in-country sales in Brazil and Colombia decreased 16.2%, or
$15.0 million, to $77.7 million in the first quarter ended September 30,
1998 compared to $92.7 million in the first quarter ended September 30,
1997, primarily due to lower export sales of mass storage products which
was offset by in-country sales in Brazil and Colombia. Sales of
microcomputer products represented approximately 90.3% of the Company's
first quarter net sales compared to 84.7% for the same period last year.
Sales of wireless telephone products accounted for approximately 9.7% of
the Company's first quarter net sales compared to 15.3% for the same period
last year.
Gross profit decreased 3.3%, or $.4 million, to $11.2 million in the first
quarter ended September 30, 1998 compared to $11.6 million in the first
quarter ended September 30, 1997. Gross profit as a percentage of net
sales decreased to 5.2% in the first quarter ended September 30, 1998 from
5.4% in the first quarter ended September 30, 1997. The decrease in the
gross profit percentage was primarily due to competitive pricing.
Selling, general and administrative expenses (excluding $1.4 million of
start-up expenses during the quarter ended September 30, 1997) increased
86.8%, or $3.3 million, to $10.1 million in the first quarter ended
September 30, 1998, compared to $6.8 million in the first quarter ended
September 30, 1997. These expenses as a percentage of net sales increased
to 4.7% in the first quarter ended September 30, 1998 compared to 3.2% in
the first quarter ended September 30, 1997. The dollar increase in these
expenses was primarily due to new and expanded U.S. distribution
facilities, and expenses of operations in Latin America. Additionally, the
Company incurred higher charges for uncollectible customer accounts.
As a result of a transaction with Globelle in June 1997, the Company
acquired the distribution rights for certain significant vendor lines in
the United States and subsequently hired 36 experienced salespeople
formerly with Globelle. Because the Globelle transaction was not an
acquisition of a going business concern, a transition period followed the
close of that transaction during which the newly-hired sales people became
acclimated to the Company's policies, procedures and product offerings, and
the inventory of new product lines became stocked at the Company's
warehouses. As a result of this transaction, the Company incurred $1.4
million of start-up expenses during the fiscal quarter ended September 30,
1997
<PAGE>
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS - (continued)
reflecting costs associated with the hiring of new sales people, opening
new sales offices and other transition expenses.
Net interest expense decreased 72.7%, or $.8 million, to $.3 million in
the first quarter ended September 30, 1998 compared to $1.1 million in the
first quarter ended September 30, 1997. The decrease in interest expense
was primarily due to lower average borrowings.
Income tax expense was recorded at an effective annual rate of 56.3% in the
first quarter ended September 30, 1998 compared to 39.0% in the first
quarter ended September 30, 1997. The increase in the effective rate
relates primarily to non-deductible goodwill amortization expense and
valuation allowances on foreign losses.
Liquidity and Capital Resources
The Company's liquidity requirements arise primarily from the funding of
working capital needs, including inventories and trade accounts receivable.
Historically, the Company has financed its liquidity needs largely through
internally generated funds, borrowings under its credit agreement and
vendor lines of credit. The Company derives all of its operating income
and cash flow from its subsidiaries and relies on payments from its
subsidiaries to generate the funds necessary to meet its obligations. As
the Company pursues its growth strategy and acquisition opportunities both
in the United States and in Latin America, management believes that
exchange controls in certain countries may limit the ability of the
Company's present and future subsidiaries in those countries to make
payments to the Company.
Operating activities provided $44.6 million in the first quarter ended
September 30, 1998. The source of cash in the first quarter ended
September 30, 1998 resulted primarily from decreases of $16.1 million in
accounts receivable and $75.4 million in inventory, offset by a $51.8
million decrease in accounts payable.
Investing activities used $.5 million in the first quarter ended September
30, 1998 to purchase equipment.
Financing activities used $35.1 million in the first quarter ended
September 30, 1998. The Company used $31.0 million to repay borrowings
under its line of credit and $4.1 million to repurchase shares of its
common stock.
The Company has a Credit Agreement, which provides for a secured line of
credit of $100.0 million. The Company may borrow at the prime rate offered
by Wachovia Bank, N.A. (8.5% at September 30, 1998) or the Company may fix
the interest rate for periods of 30 to 180 days under various interest rate
options. The Credit Agreement requires a commitment fee of .125% of the
unused commitment. The Credit Agreement is secured by accounts receivable
and inventory and requires maintenance of certain minimum working capital
and other financial ratios and has certain dividend restrictions. The
Credit Agreement expires in August 2000. At September 30, 1998, the
Company had no borrowings under this Agreement. The Company was not in
compliance with certain financial covenants of the Agreement at September
30, 1998. The Company has received waiver of such covenants.
<PAGE>
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS - (continued)
Management believes that the Credit Agreement together with vendor lines of
credit and internally generated funds will be sufficient to satisfy its
working capital needs during fiscal 1999. The Credit Agreement permits up
to $30.0 million to be borrowed for the purpose of financing acquisitions,
subject to a limitation of $15.0 million for any one acquisition, and
further subject to compliance with the other terms of the Credit Agreement.
Inflation and Price Levels
Inflation has not had a significant impact on the Company's business
because of the typically decreasing costs of products sold by the Company.
The Company also receives vendor price protection for a significant portion
of its inventory. In the event a vendor reduces its prices for goods
purchased by the Company prior to the Company's sale of such goods, the
Company generally has been able either to receive a credit from the vendor
for the price differential or to return the goods to the vendor for a
credit against the purchase price. As the Company pursues its growth
strategy to acquire businesses and assets in foreign countries, the Company
may operate in certain countries that have experienced high rates of
inflation and hyperinflation. At this time, management does not expect
that inflation will have a material impact on the Company's business in the
immediate future.
Year 2000
The Company is currently evaluating its major computer software and
operating systems to determine their respective date sensitivity in light
of the possible inability of certain computer programs to handle dates
beyond the year 1999 (the "Year 2000 Issue"). The Company's plans for
dealing with the Year 2000 Issue include the following phases: inventorying
affected technology and assessing potential impact of the Year 2000 Issue;
determining the need for software and operating system upgrades and
replacements; implementing and testing newly installed software and
operating systems; and developing contingency plans. Many of the Company's
software and operating systems have already been updated to the latest
versions available.
The Company relies on third-party suppliers for many systems, products and
services including telecommunications and data center support. The Company
may be adversely impacted if these suppliers do not make necessary changes
to their own systems and products successfully in a timely manner.
The cost to the Company of software and hardware remediation was
approximately $250,000 during fiscal 1998 and is estimated to be $200,000
during fiscal 1999, and $50,000 during fiscal 2000. The total cost of
updating the Company's software and operating systems is currently
estimated at approximately $500,000.
Potential risk factors for the Company relating to the Year 2000 Issue may
include loss of order processing and order shipment capabilities, the
potential inability to effectively manage distribution center inventory,
and potential complications with telephone or e-mail communications. The
Company currently believes that the majority of its mission critical
systems pose a low risk to the Company's overall operational abilities,
because the Company has updated most of its software and operating systems
to recent versions. Furthermore, the Company is currently taking measures
to ensure that its systems that pose a potentially higher risk
<PAGE>
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS - (continued)
to the Company's overall operational abilities will be updated within a
reasonable time frame.
The Company believes that it is taking the appropriate measures to develop
contingency plans that address the likely worst case scenarios relating to
the Year 2000 Issue. Although the Company believes that the measures it is
currently undertaking and intends to undertake will adequately address the
Year 2000 Issue, it has still developed alternative plans should potential
complications arise.
Though essential to the operation of the Company's business, the software
and operating systems that the Company currently utilizes may be
supplemented by manual processing and shipment of orders.
Forward-Looking Information
The matters discussed herein contain certain forward-looking statements
that represent the Company's expectations or beliefs, including, but not
limited to, statements concerning future revenues and future business plans
and non-historical Year 2000 information. When used by or on behalf of the
Company, the words "may," "could," "should," "would," "believe,"
"anticipate," "estimate," "intend," "plan," and similar expressions are
intended to identify forward-looking statements. These statements by their
nature involve substantial risks and uncertainties, certain of which are
beyond the Company's control. The Company cautions that various factors,
including the factors described under the captions "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" contained in the Company's Registration Statement on Form S-3
(SEC File No. 333-35069) as well as general economic conditions and
industry trends, the level of acquisition opportunities available to the
Company and the Company's ability to negotiate the terms of such
acquisition on a favorable basis, a dependence upon and/or loss of key
vendors or customers, the loss of strategic product shipping relationships,
customer demand, product availability, competition (including pricing and
availability), concentrations of credit risks, distribution efficiencies,
capacity constraints and technological difficulties could cause actual
results or outcomes to differ materially from those expressed in any
forward-looking statements of the Company made by or on behalf of the
Company. The Company undertakes no obligation to update any forward-looking
statement.
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
Not applicable
Item 2. Changes in Securities
Not applicable
Item 3. Default Upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
The Company's 1998 Annual Meeting of Stockholders was held on
November 10, 1998 for the following purposes: (i)to elect two
Class I directors for terms to expire at the 2001 Annual Meeting
of Stockholders; (ii) to change the state of incorporation of the
Company from Delaware to Georgia; (iii) to approve an amendment
to the Company's 1997 Stock Option Plan to increase the number of
shares available for issuance by 200,000. The voting results on
the foregoing matters, which were all approved, were as follows:
Proposal 1 - Election of Directors
Nominee For Authority Withheld Against
Stewart Aaron 8,579,803 2,400 -0-
Mark Diamond 8,539,970 49,677 -0-
Proposal 2 - To change the state of incorporation of the Company
from Delaware to Georgia
For Against Abstained Broker Non-Votes
7,828,876 1,254,637 19,450 375,778
Proposal 3 - To approve an amendment to the Company's 1997 Stock
Option Plan to increase the number of shares available for
issuance by 200,000
For Against Abstained Broker Non-Votes
7,265,149 1,774,311 63,503 375,778
Item 5. Other Information
Shareholders who desire the Company to include notice of matter
in the Company's Proxy Statement for its 1999 Annual
Shareholders' Meeting under Rule 14a-4 of the Securities Exchange
Act of 1934 and the by-laws of the Company must submit notice to
the Company's Secretary no later than June 7, 1999.
<PAGE>
Item 6. Exhibits and Reports on Form 8-K
a) Exhibits.
Exhibit
Number Description
27.1 Financial Data Schedule
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 thereunto duly authorized.
SED International Holdings, Inc.
(Registrant)
November 13, 1998 /s/Gerald Diamond
Gerald Diamond
Chief Executive Officer
Chairman of the Board
(Principal Executive Officer)
November 13, 1998 /s/Larry G. Ayers
Larry G. Ayers
Vice President-Finance and
Treasurer
(Principal Accounting Officer)
<PAGE>
EXHIBIT INDEX
Exhibit
Number Description
27.1 Financial Data Schedule
<PAGE>
EXHIBIT 27.1
FINANCIAL DATA SCHEDULE
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM SED
INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS AS OF AND FOR THE PERIOD ENDED SEPTEMBER 30, 1998 AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS.
PERIOD-TYPE 3-MOS
FISCAL-YEAR-END JUN-30-1999
PERIOD-END SEP-30-1998
CASH 11,323,000
SECURITIES 0
RECEIVABLES 70,207,000
ALLOWANCES 3,641,000
INVENTORY 65,833,000
CURRENT-ASSETS 151,194,000
PP&E 9,321,000
ACCUMULATED DEPRECIATION 6,389,000
TOTAL-ASSETS 180,342,000
CURRENT-LIABILITIES 78,229,000
BONDS 0
PREFERRED 0
PREFERRED-MANDATORY 0
COMMON 108,000
OTHER-SE 102,003,000
TOTAL-LIABILITY-AND-EQUITY 180,342,000
SALES 217,013,000
TOTAL-REVENUES 217,013,000
CGS 205,788,000
TOTAL-COSTS 205,788,000
OTHER-EXPENSES 10,124,000
LOSS-PROVISION 0
INTEREST-EXPENSE 319,000
INCOME-PRETAX 782,000
INCOME-TAX 440,000
INCOME-CONTINUING 342,000
DISCONTINUED 0
EXTRAORDINARY 0
CHANGES 0
NET-INCOME 342,000
EPS-BASIC 0.03
EPS-DILUTED 0.03
