<PAGE>
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-----------------------------------------------------
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES AND EXCHANGE ACT OF 1934
For the Quarter Ended Commission File Number
June 30, 1998 0-15045
BHA Group Holdings, Inc.
-------------------------------------------------
(Exact Name of Registrant as Specified in Its Charter)
<TABLE>
<S> <C>
Delaware 43-1416730
- ---------------------------------- -------------------------------
(State or Other Jurisdiction of (I.R.S. Employer Identification
Incorporation or Organization) Number)
8800 East 63rd Street, Kansas City, Missouri 64133
- ----------------------------------------------------------- ------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (816) 356-8400
------------------
</TABLE>
Indicate by checkmark 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 twelve 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
------- ------
As of July 31, 1998, the number of shares outstanding of the Registrant's Common
Stock was 7,152,316.
<PAGE>
<PAGE>
PART I. FINANCIAL INFORMATION
BHA GROUP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<TABLE>
<CAPTION>
(IN THOUSANDS, EXCEPT SHARE DATA) JUNE 30, SEPTEMBER 30,
1998 1997
--------------- ---------------
<S> <C> <C>
ASSETS
--------
Current assets:
Cash and cash equivalents $ 2,872 $ 2,590
Accounts receivable, less allowance for doubtful
receivables of $988 and $965, respectively 27,119 21,947
Inventories (note 3) 23,468 19,936
Income taxes receivable 271 518
Prepaid expenses 2,058 1,250
Deferred income taxes 1,318 1,216
--------------- ---------------
Total current assets 57,106 47,457
--------------- ---------------
Property, plant and equipment, at cost:
Land and improvements 1,314 1,262
Buildings and improvements 23,267 20,356
Machinery and equipment 35,062 31,616
Office furniture, fixtures and equipment 4,186 3,514
--------------- ---------------
63,829 56,748
Less accumulated depreciation and amortization 27,912 24,537
--------------- ---------------
Net property, plant and equipment 35,917 32,211
--------------- ---------------
Other assets 8,652 7,937
--------------- ---------------
$101,675 $ 87,605
=============== ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current installments of long-term debt $ 3,586 $ 62
Accounts payable 5,911 8,341
Accrued compensation and employee benefit costs 2,646 4,371
Accrued expenses and other current liabilities 2,561 2,551
--------------- ---------------
Total current liabilities 14,704 15,325
--------------- ---------------
Long-term deferred income taxes 3,055 2,947
Long-term debt, excluding current installments 22,651 12,415
Other liabilities 125 --
Shareholders' equity:
Common stock $0.01 par value.
Authorized 20,000,000 shares; issued
8,665,544 and 7,837,789, respectively 87 78
Additional paid-in capital 61,744 47,607
Retained earnings 21,252 27,773
Foreign currency translation adjustment (660) (148)
Unearned compensation (134) (211)
Less cost of 1,497,614 shares and 1,335,210 of
common stock in treasury (21,149) (18,181)
--------------- ---------------
Total shareholders' equity 61,140 56,918
--------------- ---------------
$ 101,675 $ 87,605
=============== ===============
</TABLE>
See accompanying notes to condensed consolidated financial statements.
<PAGE>
<PAGE>
BHA GROUP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE MONTHS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
(IN THOUSANDS, EXCEPT PER SHARE DATA) 1998 1997
---- ----
<S> <C> <C>
Net sales $35,917 $33,054
Cost of sales 24,738 22,480
---------------- ----------------
Gross margin 11,179 10,574
---------------- ----------------
Operating expenses
Selling and advertising expense 4,473 3,849
General and administrative expense 3,650 3,451
---------------- ----------------
Total operating expenses 8,123 7,300
---------------- ----------------
Operating income 3,056 3,274
---------------- ----------------
Interest income (21) (11)
Interest expense 382 304
---------------- ----------------
Earnings before income taxes 2,695 2,981
---------------- ----------------
Income taxes 800 975
================ ================
Net earnings $ 1,895 $ 2,006
================ ================
Basic earnings per common share $ .26 $ .28
Diluted earnings per common share .25 .26
Basic weighted average number of common shares
outstanding 7,178 7,216
Diluted weighted average number of common shares
outstanding 7,679 7,689
</TABLE>
*Earnings per share have been adjusted to reflect the 1998 and 1997 stock
dividend of 10%.
See accompanying notes to condensed consolidated financial statements.
<PAGE>
<PAGE>
BHA GROUP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE NINE MONTHS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
(IN THOUSANDS, EXCEPT PER SHARE DATA) 1998 1997
---- ----
<S> <C> <C>
Net sales $104,819 $97,816
Cost of sales 72,258 67,622
---------------- ----------------
Gross margin 32,561 30,194
---------------- ----------------
Operating expenses
Selling and advertising expense 12,810 10,977
General and administrative expense 10,880 9,836
---------------- ----------------
Total operating expenses 23,690 20,813
---------------- ----------------
Operating income 8,871 9,381
---------------- ----------------
Interest income (35) (25)
Interest expense 995 768
---------------- ----------------
Earnings before income taxes 7,911 8,638
---------------- ----------------
Income taxes 2,525 2,865
---------------- -----------------
Net earnings $ 5,386 $ 5,773
================ ================
Basic earnings per common share $ .75 $ .80
Diluted earnings per common share .70 .77
Basic weighted average number of common shares
outstanding 7,169 7,245
Diluted weighted average number of common shares
outstanding 7,677 7,535
</TABLE>
*Earnings per share have been adjusted to reflect the 1998 and 1997 stock
dividend of 10%.
See accompanying notes to condensed consolidated financial statements.
<PAGE>
<PAGE>
BHA GROUP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
(IN THOUSANDS) 1998 1997
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net earnings: $ 5,386 $ 5,773
Adjustment to reconcile net earnings to net cash
provided by operating activities:
Depreciation and amortization 4,069 3,241
Changes in assets and liabilities:
Accounts receivable (4,371) (2,252)
Inventories (3,108) (143)
Prepaid expenses (798) (544)
Accounts payable (3,071) (2,367)
Accrued expenses and other liabilities (2,641) (1,562)
Income taxes payable 247 (368)
-------------- --------------
Net cash used in operating activities (4,287) (1,778)
-------------- --------------
Cash flows from investing activities:
Acquisition of property, plant and equipment (6,523) (7,084)
Additions to other assets (78) --
Net assets of businesses acquired, excluding cash (1,221) --
-------------- --------------
Net cash used in investing activities (7,822) (7,084)
-------------- --------------
Cash flows from financing activities:
Payment of cash dividend on common stock (591) (538)
Purchase of treasury stock (618) (1,597)
Proceeds from issuance of common stock 272 231
Net stock options exercised 208 --
Proceeds from borrowings under bank term notes -- 7,500
Net proceeds from borrowings under
revolving bank lines of credit 13,736 2,505
Repayments of long-term debt and other long-term
liabilities (104) (1,707)
-------------- --------------
Net cash provided by financing activities 12,903 6,394
-------------- --------------
Effect of exchange rate changes (512) (371)
-------------- --------------
Net increase in cash and cash equivalents 282 717
Cash and cash equivalents at beginning of period 2,590 2,304
-------------- --------------
Cash and cash equivalents at end of period $ 2,872 $ 3,021
============== ==============
</TABLE>
See accompanying notes to condensed consolidated financial statements.
<PAGE>
<PAGE>
BHA GROUP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
FOR THE NINE MONTHS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
(In thousands, except share and per share data) 1998 1997
---- ----
<S> <C> <C>
Common stock:
Balance at beginning period $ 78 $ 71
Issuance of 40,199 and 32,300 shares of common
stock in 1998 and 1997, respectively 1 -
Issuance of 787,556 and 712,351 shares in 1998 and 1997,
respectively, pursuant to a 10% stock dividend 8 7
----------------- -----------------
Balance at end of period 87 78
----------------- -----------------
Additional paid-in capital:
Balance at beginning of period 47,607 33,392
Excess over par value of common stock issued 461 280
Excess over par value of common stock pursuant to a
stock dividend of 10% 13,676 13,790
----------------- -----------------
Balance at end of period 61,744 47,462
----------------- -----------------
Retained earnings:
Balance at beginning of period 27,773 31,963
Net earnings for the period 5,386 5,773
Distribution of 10% stock dividend (11,316) (11,559)
Cash dividends of $.09 per share paid on common
stock during 1998 and 1997 (591) (538)
----------------- -----------------
Balance at end of period 21,252 25,639
----------------- -----------------
Foreign currency translation adjustment:
Balance at beginning of period (148) (138)
Equity adjustment from foreign currency translation (512) (371)
----------------- -----------------
Balance at end of period (660) (509)
----------------- -----------------
Unearned compensation:
Balance at beginning of period (211) (315)
Compensation expense 77 78
----------------- -----------------
Balance at end of period (134) (237)
----------------- -----------------
Treasury stock:
Balance at beginning of period (18,181) (13,277)
Issuance of 136,275 and 115,976 treasury shares
pursuant to a 10% stock dividend during 1998
and 1997, respectively (2,368) (2,244)
Acquisition of 32,800 and 81,879 shares of common stock,
at cost, during 1998 and 1997, respectively (618) (1,597)
Sale of 6,671 and 7,630 treasury shares pursuant to
stock option exercises, net, during 1998 and 1997 18 23
----------------- -----------------
Balance at end of period (21,149) (17,095)
----------------- -----------------
Total shareholders' equity $ 61,140 $ 55,338
================= =================
</TABLE>
See accompanying notes to condensed consolidated financial statements.
<PAGE>
<PAGE>
BHA GROUP HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(1) BASIS OF PRESENTATION
These condensed consolidated financial statements reflect all adjustments
(consisting of normal recurring adjustments) which, in the opinion of
management, are necessary to present fairly the financial position, results of
operations and cash flows for the periods presented in conformity with generally
accepted accounting principles applied on a consistent basis.
These statements should be read in conjunction with the Notes to Consolidated
Financial Statements contained in BHA Group Holdings, Inc.'s Annual Report to
Shareholders for the fiscal year ended September 30, 1997, and with Management's
Discussion and Analysis of Results of Operations and Financial Condition
appearing within this quarterly report.
(2) EARNINGS PER COMMON SHARE
The Company adopted Statement of Financial Accounting Standard No. 128,
"Earnings per Share" during the first quarter ended December 31, 1997. This
statement requires the restatement of earnings per common share to show both a
"basic" and "diluted" earnings per share number. Basic earnings per share is
computed by dividing net earnings by the weighted average number of outstanding
common shares. Diluted earnings per share includes the dilutive effect of common
share equivalents in the computation of earnings per common share.
Stock dividends of 10% were announced in June 1997 and in May 1998. The per
share data and weighted average number of common shares and common equivalents
data in the consolidated financial statements and related notes have been
restated to reflect these stock dividends for all periods presented.
(3) INVENTORIES
BHA Group Holdings, Inc. values its inventory at the lower of cost or market.
Cost is determined using the first-in, first-out (FIFO) method.
Components of inventories at June 30, 1998 and September 30, 1997 were as
follows (in thousands):
<TABLE>
<CAPTION>
JUNE 30, SEPTEMBER 30,
1998 1997
<S> <C> <C>
Raw materials $ 14,752 $ 11,697
Work-in-process 2,140 1,015
Finished goods 6,576 7,224
--------- ---------
Total $ 23,468 $ 19,936
======== ========
</TABLE>
<PAGE>
<PAGE>
(4) ACQUISITION OF BUSINESS
In November 1997, the Company acquired Purificacion y Filtracion, S.L.
(Purfilter), located in Spain, for $1,275,000. The Company included Purfilter's
financial results in its consolidated financials on the date of acquisition.
The acquisition was accounted for as a purchase, with the purchase price
allocated to the assets acquired based upon the estimated fair values as of
the date of acquisition. The excess of the purchase price over the net assets
acquired is being amortized on a straight-line basis over thirty years.
(5) NOTES PAYABLE TO BANKS
The Company has domestic unsecured bank lines of credit amounting to $33,000,000
for working capital purposes and other corporate matters. These lines bear
interest at variable rates based on LIBOR. These lines expire in the following
fiscal years: 1999 - $10,000,000; 2000 - $9,000,000; 2001 - $4,000,000; 2002 -
$10,000,000. The facilities include revolving credit agreements of $19,000,000,
in which the Company pays a 0.25% commitment fee on the unused portion. At June
30, 1998, $18,500,000 was outstanding under all domestic bank lines of credit at
a weighted average interest rate of 6.52%. At September 30, 1997, $4,800,000 was
outstanding under the Company's domestic bank lines of credit.
<PAGE>
<PAGE>
BHA GROUP HOLDINGS, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
NET SALES
BHA Group Holdings, Inc. (the "Company") develops, manufactures and markets
innovative filtration products and services to domestic customers in the U.S.
and Canada and to international customers around the world. The Company's
international focus is truly global with coverage in every major market.
Consolidated net sales increased 7% to $104.8 million from $97.8 million for the
nine months ended June 30, 1998 and 1997, respectively. The increase in
consolidated net sales is attributable to an increase in sales of the Company's
fabric filter products and services in the U.S. and Europe. The Company also
posted higher sales of replacement parts and services for electrostatic
precipitators (ESP's) in the U.S. The increases were offset in part by a
decrease in U.S. export sales to international customers. The Company expects
that U.S. export sales to Asia will remain soft for the remainder of the year
due to current economic conditions in that region.
Net sales for the three months ended June 30, 1998 increased 9% to $35.9 million
from $33.1 million for the same period in the prior year. The increase is due to
strong U.S. sales of both fabric filter replacement parts and rebuilds for
electrostatic precipitators. The current period results include the sales of
Purificacion y Filtracion, S.L. (Purfilter) in Spain, which was acquired in
the first quarter of the current fiscal year.
GROSS MARGIN
Consolidated gross margin as a percentage of sales was 31.1% and 30.9% for the
nine months ended June 30, 1998 and 1997, respectively. The increase in gross
margin percentage was attributable to improved sales of the Company's fine
filtration products in the U.S. and Europe. Consolidated gross margin as a
percentage of sales was 31.1% and 32.0% for the three months ended June 30, 1998
and 1997, respectively. The decline in the gross margin percentage for the third
quarter is primarily due to a decrease in U.S. export sales which typically
carries higher gross margin percentages combined with an increase in the labor
portion of domestic ESP project work at lower gross margin percentages.
OPERATING EXPENSES
Consolidated selling and advertising expense as a percentage of sales was 12.2%
for the nine months ended June 30, 1998 compared to 11.2% for the same period in
1997. Selling and advertising expense for the three months ended June 30, 1998
and 1997 were 12.5% and 11.6%, respectively. The increase in spending is
primarily attributable to the expansion of product development efforts of BHA
Technologies, Inc. for applications outside of the industrial air pollution
control markets.
Consolidated general and administrative expense as a percentage of sales was
10.4% and 10.1% for the nine months ended June 30, 1998 and 1997, respectively.
The increases for the nine month period was attributable to higher costs
associated with improvements made to the Company's information technology
infrastructure. General and administrative expense for the three months ended
June 30, 1998 and 1997 was 10.2% and 10.4%, respectively.
<PAGE>
<PAGE>
NET INTEREST EXPENSE
Net interest expense for the nine months ended June 30, 1998 and 1997 was
$960,000 and $743,000, respectively. Net interest expense was $361,000 for the
three months ended June 30, 1998 and $293,000 for the three months ended June
30, 1997. The increase in net interest expense was attributable to higher bank
borrowings under the Company's credit facilities. Proceeds from the borrowings
were used to fund working capital requirements, the acquisition of Purfilter and
capital expenditures.
INCOME TAXES
The Company's effective income tax rate for the nine months ended June 30, 1998
and 1997 was 32% and 33%, respectively. The effective income tax rate for the
three months ended June 30, 1998 and 1997 was 30% and 33%, respectively. The
decrease in the effective income tax rate is reflective of benefits derived from
our international business.
NET EARNINGS
Net earnings for the nine months ended June 30, 1998 decreased 7% to $5.4
million from $5.8 million for the same period in the prior year with diluted
earnings per share decreasing to $.70 from $.77 in 1997. Net earnings for the
three months ended June 30, 1998 decreased 5% to $1.9 million from $2.0 million
for the three months ended June 30, 1997 with diluted earnings per share
decreasing to $.25 from $.26 in 1997. The decrease in net earnings and
diluted earnings per share for the nine and three month periods occurred as
sales growth did not maintain pace with the increases in selling, general and
administrative expense relating to the development of new business for BHA
Technologies, Inc., the expansion of sales and marketing activities in Asia and
expenditures to improve the Company's information technology infrastructure.
LIQUIDITY AND CAPITAL RESOURCES
Net working capital was $42.4 million at June 30, 1998 compared to $32.1 million
at September 30, 1997. The increase was attributable to increases in accounts
receivable and inventory combined with a decrease in accounts payable and
accrued compensation. The current ratios for June 30, 1998 and September 30,
1997 were 3.9 to 1 and 3.1 to 1, respectively. The Company's cash and cash
equivalents was $2.9 million at June 30, 1998 and $2.6 million at September 30,
1997. Cash used in operating activities of $4.3 million for the nine months
ended June 30, 1998 was attributable to increases in accounts receivable and
inventories.
Investing activities resulted in a net use of cash of $7.8 million and $7.1
million for the nine months ended June 30, 1998 and 1997. Investments for 1998
and 1997 included expenditures for property, plant and equipment and the
acquisition of Purfilter.
During the nine months ended June 30, 1998 and 1997, net cash provided by
financing activities was $12.9 million and $6.4 million, respectively. The
Company's financing activities consisted primarily of borrowings under the
Company's revolving bank lines of credit which were used to fund working capital
requirements and investment activities.
At June 30, 1998 and September 30, 1997, the Company had unused domestic lines
of credit of $14.5 million and $18.2 million, respectively. The Company also had
unused foreign bank lines of credit of $1.2 million at June 30, 1998 and
September 30, 1997, respectively. During the quarter ended June 30, 1998, the
Company obtained additional unsecured lines of credit in the
<PAGE>
<PAGE>
amount of $10 million to provide for short-term cash needs. The Company believes
the cash flow from operations and available credit lines will be sufficient to
meet it capital needs for the foreseeable future.
OTHER INFORMATION
The Company is conducting a comprehensive review of its computer systems to
identify the systems that could be affected by the "Year 2000" issue. The
Company is currently utilizing internal resources to verify that its systems
are Year 2000 compliant. The Company is communicating with its significant
suppliers to evaluate its exposure to their potential Year 2000 issues. The
Company is also evaluating its computer-based products to determine if there are
any Year 2000 issues which might adversely affect the customers to whom they
have been delivered. The costs associated with evaluating and addressing Year
2000 have been charged to expense. Although there can be no assurances, based
on current evaluations, Management expects the Company's Year 2000 issues to
be identified and corrected before the Year 2000, and does not expect the
costs incurred to have a material adverse effect on the Company's results of
operations or financial condition.
NEW ACCOUNTING PRONOUNCEMENTS
During fiscal year 1997 the Financial Accounting Standard Board issued a number
of new pronouncements. Statement of Financial Accounting Standards (SFAS) No.
130, "Reporting Comprehensive Income" is effective for the Company's fiscal
1999. SFAS No. 131, "Disclosures about Segments of an Enterprise and Related
Information", is effective for the Company's fiscal 1999. Management does not
expect the adoption of these statements to have a significant impact on the
consolidated financial statements.
FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements that reflect the Company's
current views with respect to future events and financial performance. The
statements are subject to certain risks and uncertainties that could cause
actual results to differ materially from historical results or those
anticipated. The words "should," "believe," "anticipate," "expect" and other
expressions that indicate future events and trends identify forward-looking
statements. Actual future results and trends may differ materially from
historical results or those anticipated depending on a variety of factors,
including, but not limited to, competition, the performance of newly established
domestic and international operations, demand and price for the Company's
products and services, and other factors. Information on factors that could
affect the Company's financial results is set forth in the Company's filings
with the Securities and Exchange Commission including the report on Form 10K for
the Company's fiscal year ended September 30, 1997.
<PAGE>
<PAGE>
PART II. OTHER INFORMATION
Item 6 - Exhibits and Reports on Form 8-K
(a) Exhibit 11: Computation of earnings per common share
(b) Exhibit 27: Financial Data Schedule
Reports on Form 8-K:
(c) During the quarter ended June 30, 1998, there were no reports on Form
8-K filed by the Company.
<PAGE>
<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.
BHA GROUP HOLDINGS, INC.
(Registrant)
August 14, 1998 By: /s/ James C. Shay
------------------------ -------------------------------
Date (Signature)
James C. Shay
Secretary, Treasurer, Principal Financial
and Accounting Officer
By: /s/ James E. Lund
--------------------------------
(Signature)
James E. Lund
President and
Chief Executive Officer
<PAGE>
<PAGE>
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
11 Computation of Earnings Per Common Share
27 Financial Data Schedule
<PAGE>
<PAGE>
Exhibit 11
BHA GROUP HOLDINGS, INC.
COMPUTATION OF EARNINGS PER COMMON SHARE
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
JUNE 30 JUNE 30
1998 1997 1998 1997
-------------- ------------- ------------- --------------
<S> <C> <C> <C> <C>
(In thousands, except per share
data)
Net earnings $ 1,895 $ 2,006 $ 5,386 $ 5,773
Weighted average number of
common shares:
Basic weighted average
number of outstanding
common shares 7,178 7,216 7,169 7,245
Basic earnings per common
shares: $ .26 $ .28 $ .75 $ .80
-------------- ------------- ------------- --------------
Weighted average number of
common and common stock
equivalent shares:
Dilutive effect (excess of
number of shares
issuable over number
of shares assumed to
be repurchased with
the proceeds of
exercised options
based on the average
market price during
the period) 501 473 508 290
-------------- ------------- ------------- --------------
7,679 7,689 7,677 7,535
-------------- ------------- ------------- --------------
Diluted earnings per common
and common stock
equivalent shares: $ .25 $ .26 $ .70 $ .77
-------------- ------------- ------------- --------------
</TABLE>
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from
unaudited condensed consolidated financial statements for the three months
ended June 30, 1998 and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> JUN-30-1998
<CASH> 2,872
<SECURITIES> 0
<RECEIVABLES> 28,107
<ALLOWANCES> 988
<INVENTORY> 23,468
<CURRENT-ASSETS> 57,106
<PP&E> 63,829
<DEPRECIATION> 27,912
<TOTAL-ASSETS> 101,675
<CURRENT-LIABILITIES> 14,704
<BONDS> 22,651
<COMMON> 87
0
0
<OTHER-SE> 61,053
<TOTAL-LIABILITY-AND-EQUITY> 101,675
<SALES> 30,465
<TOTAL-REVENUES> 35,917
<CGS> 29,461
<TOTAL-COSTS> 24,738
<OTHER-EXPENSES> 8,123
<LOSS-PROVISION> 1
<INTEREST-EXPENSE> 361
<INCOME-PRETAX> 2,695
<INCOME-TAX> 800
<INCOME-CONTINUING> 1,895
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,895
<EPS-PRIMARY> .26
<EPS-DILUTED> .25
</TABLE>
