<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------------------------------------------------
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
---
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended January 31, 1996
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: 33-9464
LOWRANCE ELECTRONICS, INC.
--------------------------------------------------------
(Exact Name of Registrant as Specified in its Charter)
Delaware 44-0624411
- --------------------------- -----------------------------
State of Incorporation IRS Identification Number
12000 East Skelly Drive
Tulsa, Oklahoma 74128
----------------------------------------
(Address of Principal Executive Offices)
Registrant's telephone number, including area code: (918) 437-6881
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 January 31, 1996, there were 3,352,458 shares of Registrant's $0.10 par value
Common Stock outstanding.
<PAGE>
LOWRANCE ELECTRONICS, INC.
--------------------------
FORM 10-Q
---------
INDEX
-----
PAGE
----
PART I. FINANCIAL INFORMATION
ITEM 1. Condensed Consolidated Balance Sheets -
January 31, 1996, 1995, and July 31, 1995........... 3
Consolidated Statements of Operations -
Three Months and Six Months Ended
January 31, 1996 and 1995........................... 4
Consolidated Statements of Cash Flows -
Six Months Ended January 31, 1996 and 1995......... 5
Notes to Condensed Consolidated Financial Statements..... 6 - 8
ITEM 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations....... 9 - 10
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
SIGNATURES ........................................................ 12
-2-
<PAGE>
LOWRANCE ELECTRONICS, INC.
--------------------------
CONDENSED CONSOLIDATED BALANCE SHEETS
----------------------------------------
(IN THOUSANDS)
--------------
<TABLE>
<CAPTION>
Jan. 31, Jan. 31, July 31,
1996 1995 1995
---------- ----------- ---------
(Unaudited) (Unaudited) (Audited)
ASSETS
------
CURRENT ASSETS:
<S> <C> <C> <C>
Cash and cash equivalents $ 349 $ 928 $ 643
Accounts receivable, less allowances 14,487 14,564 10,665
Inventories (Note 2) 22,571 18,147 17,976
Prepaid expenses 572 391 479
Deferred income taxes 2,035 1,744 1,326
------- ------- -------
Total current assets $40,014 $35,774 $31,089
PROPERTY, PLANT, AND EQUIPMENT, net (Note 2) 9,890 8,373 8,691
OTHER ASSETS 581 228 448
------- ------- -------
$50,485 $44,375 $40,228
======= ======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Current maturities of long-term debt (Note 3) $ 7,693 $ 8,438 $ 3,499
Short-term debt (Note 7) - 850 -
Accounts payable 11,615 9,890 7,494
Accrued liabilities 5,253 4,633 5,319
------- ------- -------
Total current liabilities $24,561 $23,811 $16,312
DEFERRED INCOME TAXES 509 411 489
LONG-TERM DEBT, less current
maturities (Note 3) 13,538 8,844 9,975
STOCKHOLDERS' EQUITY:
Preferred stock, 300,000 shares authorized,
none issued - - -
Common stock, $.10 par value,
10,000,000 shares authorized,
3,352,458 shares issued $ 335 $ 335 $ 335
Paid-in capital 5,600 5,600 5,600
Retained earnings 6,106 5,481 7,661
Foreign currency translation adjustment (164) (107) (144)
------- ------- -------
Total stockholders' equity $11,877 $11,309 $13,452
------- ------- -------
$50,485 $44,375 $40,228
======= ======= =======
</TABLE>
The accompanying notes are an integral part of these consolidated balance
sheets.
-3-
<PAGE>
LOWRANCE ELECTRONICS, INC.
--------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS
-------------------------------------
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------------- -------------------------
January 31, January 31, January 31, January 31,
1996 1995 1996 1995
----------- ----------- ----------- -----------
(in thousands) (in thousands)
<S> <C> <C> <C> <C>
NET SALES $20,692 $25,417 $34,659 $39,632
COST OF SALES 13,716 16,925 22,965 26,875
------- ------- ------- -------
Gross profit $ 6,976 $ 8,492 $11,694 $12,757
OPERATING EXPENSES:
Selling and administrative $ 5,912 $ 5,294 $10,887 $10,160
Research and development 844 736 1,606 1,475
Unusual Item (Note 7) - 1,100 - 1,100
------- ------- ------- -------
Total operating expenses $ 6,756 $ 7,130 $12,493 $12,735
------- ------- ------- -------
Operating income (loss) $ 220 $ 1,362 $ (799) $ 22
------- ------- ------- -------
OTHER EXPENSES:
Interest expense 478 $ 344 $ 829 $ 608
Other, net 286 295 593 547
------- ------- ------- -------
Total other expenses $ 764 $ 639 $ 1,422 $ 1,155
------- ------- ------- -------
INCOME (LOSS) BEFORE
INCOME TAXES $ (544) $ 723 $(2,221) $(1,133)
PROVISION (BENEFIT) FOR
INCOME TAXES (164) 278 (666) (375)
------- ------- ------- -------
NET INCOME (LOSS) $ (380) $ 445 $(1,555) $ (758)
======= ======= ======= =======
INCOME (LOSS) PER COMMON SHARE:
NET INCOME (LOSS) PER SHARE $ (.11) $ .13 $ (.46) $ (.23)
======= ======= ======= =======
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 3,352 3,352 3,352 3,352
======= ======= ======= =======
DIVIDENDS NONE NONE NONE NONE
======= ======= ======= =======
</TABLE>
The accompanying notes are an integral part of these consolidated statements.
-4-
<PAGE>
LOWRANCE ELECTRONICS, INC.
--------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
-------------------------------------
(Unaudited) (Note 6)
<TABLE>
<CAPTION>
Six Months Ended
--------------------------
January 31, January 31,
1996 1995
------------ ------------
(in thousands)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (1,555) $ (758)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation 1,303 1,254
Loss on retirement of fixed assets 55 -
Changes in operating assets and liabilities:
Increase in accounts receivable (3,822) (5,406)
Increase in inventories (4,595) (5,269)
Decrease (Increase) in prepaids, deferred
income taxes, and other assets (935) 909
Increase in short-term debt (Note 7) - 850
Increase in liabilities and other 4,055 4,211
-------- --------
Net cash used in operating activities $ (5,494) $ (4,209)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures $ (778) $ (745)
-------- --------
Net cash used in investing activities $ (778) $ (745)
CASH FLOWS FROM FINANCING ACTIVITIES (Note 3):
Borrowings under lines of credit $ 37,060 $ 39,854
Repayments of borrowings under lines of credit (31,749) (34,339)
Borrowings under new term loan agreement 1,506 -
Principal payments on term loans and capital
lease obligations (839) (609)
-------- --------
Net cash provided by financing activities $ 5,978 $ 4,906
-------- --------
Net decrease in cash and cash equivalents $ (294) $ (48)
CASH AND CASH EQUIVALENTS - beginning of period 643 976
-------- --------
CASH AND CASH EQUIVALENTS - end of period $ 349 $ 928
======== ========
</TABLE>
The accompanying notes are an integral part of these consolidated statements.
-5-
<PAGE>
LOWRANCE ELECTRONICS, INC.
--------------------------
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
----------------------------------------------------
(Unaudited)
(1) PRINCIPLES OF PREPARATION
The financial statements included herein have been prepared by the
Company, without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote
disclosures normally included in 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 contained herein are adequate to
make the information presented not misleading. Accounting policies for
the six months ended January 31, 1996, are the same as those outlined in
the Annual Report on Form 10-K filed relative to the year ended July 31,
1995. In the opinion of management, all adjustments necessary for a fair
presentation of interim results of operations have been made to the
interim statements. All such adjustments were of a normal, recurring
nature. The condensed consolidated financial statements should be read in
conjunction with the consolidated financial statements and the notes
thereto included in the Company's Annual Report filed with the Securities
and Exchange Commission on Form 10-K.
(2) BALANCE SHEET DETAIL
Inventories -
-----------
Inventories are priced at the lower of cost (first-in, first-out) or
market and consist of the following:
<TABLE>
<CAPTION>
Jan. 31, Jan. 31, July 31,
1996 1995 1995
--------- --------- ---------
(in thousands)
<S> <C> <C> <C>
Raw materials $ 9,306 $ 8,755 $ 7,670
Work-in-process 4,299 4,289 4,764
Finished goods 9,993 5,922 6,332
Excess, obsolete and realization reserves (1,027) (819) (790)
------- ------- -------
Total inventories $22,571 $18,147 $17,976
======= ======= =======
Property, Plant, and Equipment, Net -
-----------------------------------
Land $ 557 $ 557 $ 557
Building and improvements 3,658 3,330 3,420
Machinery and equipment 19,836 17,411 17,546
Office furniture and equipment 4,549 4,368 4,592
------- ------- -------
28,600 $25,666 $26,115
Less - accumulated depreciation 18,710 17,293 17,424
------- ------- -------
Net property, plant, and equipment $ 9,890 $ 8,373 $ 8,691
======= ======= =======
</TABLE>
-6-
<PAGE>
(3) LONG-TERM DEBT AND REVOLVING CREDIT LINE
Long-term debt and revolving credit line are summarized below:
<TABLE>
<CAPTION>
Jan. 31, Jan. 31, July 31,
1996 1995 1995
-------- -------- --------
(in thousands)
<S> <C> <C> <C>
Revolving credit line $13,004 $11,495 $ 7,693
Term loan 3,405 2,676 2,037
Capitalized equipment lease obligations,
payable in monthly installments of approx-
imately $124,000 including interest at rates
from 7% to 13%, with final payments ranging
from March 1995 through August 1999 4,822 3,111 3,744
------- ------- -------
$21,231 $17,282 $13,474
Less - current maturities 7,693 8,438 3,499
------- ------- -------
Total long-term debt $13,538 $ 8,844 $ 9,975
======= ======= =======
</TABLE>
Future maturities of the above debt obligations at January 31, 1996, are
$7,693,000, $1,747,000, $10,209,000, $679,000 and $903,000 for the years
ending January 31, 1997 through 2001, respectively.
The Company has a $30 million financing facility. The financing consists of
a $3.5 million term loan together with a $26.5 million revolving credit line.
The revolving credit line provides for borrowings based on varying
percentages of qualifying categories of receivables and inventories.
Borrowings against inventories are limited to $11 million in total.
During October 1995, the Company's $30 million financing package was amended.
Significant provisions of the amendment include: 1) The due date was extended
to December 1998 from December 1996; 2) The interest rate for the revolver
was reduced from prime plus 1.00% to prime plus .75%; and 3) The term loan
was funded to its original $3.5 million amount with monthly principal
payments of $23,167 plus interest at prime plus 1.5%. Additional principal
payments of $500,000 will be due on May 31, 1996 and May 31, 1997 with the
remaining principal due in December 1998. In addition to the financing
described above, the Company has arranged a $2.5 million lease line to
finance its qualifying capital additions during fiscal 1996 of which $1.8
million has been utilized as of January 31, 1996.
Current maturities for the revolving credit line are estimated based on
future results and collateral limitations. The terms of the foregoing
agreement include a commitment fee based on the unused portion of the bank
credit line in lieu of compensating balances. The agreement requires, among
other things, that the Company maintain a minimum tangible net worth and
limits the ratio of total liabilities to tangible net worth. Additionally,
the agreement limits capital expenditures and capital leases. Violation of
any of these provisions would constitute an event of default which, if not
cured, would empower the lender to declare all amounts immediately payable.
The Company's indebtedness is collateralized by substantially all of the
Company's assets.
(4) STOCKHOLDERS' EQUITY
During the six months ended January 31, 1996, stockholders' equity changed
for the following items: Net loss of $1,555,000 and a $20,000 increase in
the negative Foreign Currency translation adjustment.
-7-
<PAGE>
(5) INCOME TAXES
The Company has adopted Statement No. 109 of the Financial Accounting
Standards Board which requires an asset and liability approach to financial
accounting and reporting for income taxes. The difference between the
financial statement and tax bases of assets and liabilities is determined and
deferred tax assets or liabilities are computed for those differences that
have future tax consequences. The Company's deferred tax liability arises
solely from the use of accelerated depreciation methods for tax purposes.
The Company has a deferred tax asset resulting from reserves for product
costs, bad debts, and compensation and benefits, as well as the current year
tax benefit associated with the loss through six months. The Company
determined that no valuation allowance is necessary as of January 31, 1996.
(6) CONSOLIDATED STATEMENTS OF CASH FLOWS
The Company acquired $1,779,000 and $138,000 in equipment under capital lease
obligations during the six months ended January 31, 1996, and January 31,
1995, respectively. These transactions were accounted for as non-cash
investing and financing activities and, therefore, are not included in the
Consolidated Statements of Cash Flows. During the six months ended January
31, 1996, and January 31, 1995, the Company paid interest of $829,000 and
$608,000, respectively. Additionally, an income tax refund of $1.1 million
was received during the six months ended January 31, 1995.
(7) UNUSUAL ITEM
On January 10, 1995, the Company entered into a Settlement Agreement with
Computrol, Inc., resolving a patent infringement lawsuit filed against the
Company in November 1993.
The Settlement Agreement called for four payments beginning January 10, 1995,
and ending June 30, 1995, totaling $1,000,000 in exchange for a mutual
release and settlement of the lawsuit. At January 31, 1995, the unpaid
portion of the Settlement Agreement, $850,000, is reflected in the Condensed
Consolidated Balance Sheets as Short-term debt.
The Company also entered into a License Agreement with Computrol, Inc., and
paid a one-time license fee of $100,000. The License Agreement allows the
Company to use the Computrol patent on any new products or the existing
product which was the subject of the lawsuit.
At this time, the Company has no current products that utilize the
technologies covered by this License Agreement and has no immediate plans to
produce and market such products. Accordingly, the $100,000 license fee
along with the $1 million settlement amount was expensed in full in the
three-month period ending January 31, 1995.
(8) FOOTNOTES INCORPORATED BY REFERENCE
Certain footnotes are applicable to the consolidated financial statements but
would be substantially unchanged from those presented on Form 10-K filed with
the Securities and Exchange Commission on October 30, 1995. Accordingly,
reference should be made to the Company's Annual Report filed with the
Securities and Exchange Commission on Form 10-K for the following:
Note Description
---- ------------------------------------------
1 Business and Summary of Significant Accounting Policies
4 Capital Leases
5 Stockholders' Equity and Related Items
6 Retirement Plans
7 Income Taxes
-8-
<PAGE>
PART I, ITEM 2
- --------------
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
RESULTS OF OPERATIONS
- ---------------------
Net sales for the three months ended January 31, 1996, decreased 18.6% compared
to the same period in fiscal 1995. Unit sales decreased 28.2%, and the average
price per unit increased 11.2%. The decrease in unit sales was attributable to,
(1) decreased sales of the Company's Eagle products primarily resulting from
decreased orders from mass merchants, and (2) decreased sales to original
equipment manufacturers (OEM's). The above were partially offset by increased
unit sales of the Company's Global Positioning System (GPS) products. The
increase in the average price per unit resulted from increased sales of the
higher priced GPS products together with the above mentioned decreased sales of
the Eagle products which, for the most part, are offered at lower prices.
Gross profit as a percentage of net sales increased to 33.7% from 33.4% for the
three months ended January 31, 1996, compared to the same period in fiscal 1995.
Net Sales for the six months ended January 31, 1996, decreased 12.6% compared to
the same period in fiscal 1995. Unit sales decreased 23.7% while the average
price per unit increased 13.1%. The decrease in unit sales and increase in the
average selling price results from the factors discussed above, combined with
increased sales of Lowrance brand sonar products during the six months ended
January 31, 1996, when compared to the same period in 1995.
Gross profit as percentage of net sales for the six months ended January 31,
1996, was 33.7% compared to 32.2% for the same period in fiscal 1995. This
increase is primarily attributable to (1) decreased sales of Eagle and OEM
products which historically carry lower margins, and (2) increased sales of
Lowrance products which generally carry higher margins.
Operating expenses as a percentage of net sales for the three months ended
January 31, 1996, were 32.7% compared to 28.1% during the same period in 1995.
Total operating expenses decreased by $374,000. The decrease results from a one
time charge in January 1995 related to the Settlement and Licensing Agreement
with Computrol Inc.. This decline was partially offset by other operating
expense increases, primarily in Advertising and Marketing and Research and
Development. The increase in Advertising and Marketing expense results from the
Company's efforts to expand its retail distribution network and to expand
consumer awareness of its GPS products. The increase in Research and
Development results from the Company's emphasis on new product development,
primarily GPS.
Operating expenses as a percentage of net sales for the six months ended January
31, 1996, were 36.1% compared to 32.1% for the same period in 1995. Total
operating expenses decreased $242,000. The decrease relates to expenses
incurred in fiscal 1995 related to the Computrol settlement. As discussed
above, increases in Advertising and Marketing and Research and Development have
partially offset the decreases.
Interest expense is up for both the three-month and six-month periods ending
January 31, 1996, compared to fiscal 1995 because of higher average borrowing
levels on the Company's term loan and revolving credit facility.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
The Company's working capital needs increase in the fall and winter months as
the Company manufactures and stockpiles its products for the peak sales months
of January through May.
-9-
<PAGE>
The Company's primary sources of liquidity are cash flow from operations and an
accounts receivable and inventory line of credit. The line of credit allows the
Company to borrow certain percentages of its qualifying accounts receivable and
inventories. Borrowings from inventories, however, are limited to $11 million
in total and $3.25 million for raw materials. The terms of the line of credit
are described in Notes to Condensed Consolidated Financial Statements contained
elsewhere in this report.
Net cash used in operating activities increased by $1.3 million during the first
six months of fiscal 1996 compared to the same period in fiscal 1995. This
increase results from a larger net loss, receipt of a $1.1 million income tax
refund in fiscal 1995 and an increase in short-term debt related to the
Computrol settlement in 1995. These items were offset by a decrease in working
capital increases during the first six months of 1996 compared to the same
period in 1995.
Capital expenditures (including leased assets) were $1.7 million higher during
the first six months of fiscal 1996 than the first six months of fiscal 1995 due
to capital additions necessary to expand production capacity and to support
production of new products.
The net cash used in operating activities during the first six months of fiscal
1996 was financed primarily through borrowings under the Company's revolving
line of credit and the increase in the term loan of $1.5 million.
FORWARD LOOKING INFORMATION
- ---------------------------
Current backlog is approximately $13.1 million compared to approximately $20.4
million at January 31, 1995. The decrease in backlog can be attributed to
continuing changes in distribution and customer purchasing patterns, especially
with some of the Company's largest customers. Additionally, the Company was
behind on shipments of product for most of 1994 and during the first six months
of 1995. As a result, during this period, customers were more apt to place
orders in advance. Inventory availability has not been a significant issue for
several months and as a result of this and the distribution and purchasing
pattern changes discussed above, advance orders for the Company's products have
decreased when compared to last year. It should be noted that the backlog
numbers are not necessarily indicative of sales trends for the year. Also,
while the backlog numbers are supported by purchase orders from customers,
cancellations and/or delays of requested delivery times can, and often do,
occur.
Sales during the first six months of 1996 were negatively impacted by a weak
retail environment and a corresponding reluctance on the part of many retailers
to take large early season stocking orders. Additionally, sales were below
expectations due to later than planned shipments of two new portable GPS
products with mapping capabilities. In recent weeks, the Company has seen an
increase in retail sales of its products at certain outlets. Additionally, the
Company plans to begin shipment of its two new GPS products in March and April
and expects that demand for these models will remain strong throughout the
remainder of the year. We believe that these factors will result in increased
sales and profits during the last six months of fiscal 1996 when compared to the
same period in fiscal 1995. Further, the Company expects modest gains in sales
and profits for the entire fiscal year ending July 31, 1996, compared to fiscal
1995.
This report includes forward looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. Management believes that its expectations are based on reasonable
assumptions. No assurances, however, can be given that its goals will be
achieved. It should be noted that the earnings history of the Company has been
sporadic including several years in which the Company incurred a net loss.
Additionally, because of the dynamic environment in which the Company operates,
any one of several factors, including but not limited to perceived general
economic conditions, weather conditions, raw material availability, new product
introductions by competitors or unexpected delays with the Company's new
products currently expected for release during the last six months of 1996,
could rapidly deteriorate, any one of which could cause actual results to differ
materially from those in the forward looking statements included herein.
Management currently expects inventory levels by July 31, 1996, to be above
inventory levels at July 31, 1995. The Company does not expect substantial
realization problems with inventory.
-10-
<PAGE>
PART II -- OTHER INFORMATION
Item 1. Legal Proceedings
-----------------
Not applicable
Item 2. Changes in Securities
---------------------
Not applicable
Item 3. Defaults upon Senior Securities
-------------------------------
Not applicable
Item 4. Submission of Matters to a Vote of Security Holders
---------------------------------------------------
Not applicable
Item 5. Other Information
-----------------
Not applicable
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
Not applicable
-11-
<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.
LOWRANCE ELECTRONICS, INC.
By: /s/ Mark C. Wilmoth
------------------------
Mark C. Wilmoth
Vice President Finance &
Chief Financial Officer
Dated: March 15, 1996
------------------------
-12-
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM QUARTER & 6
MONTHS ENDED 1/31/96 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUL-31-1996
<PERIOD-START> AUG-01-1995
<PERIOD-END> JAN-31-1996
<CASH> 349
<SECURITIES> 0
<RECEIVABLES> 14,999
<ALLOWANCES> 512
<INVENTORY> 22,571
<CURRENT-ASSETS> 40,014
<PP&E> 28,600
<DEPRECIATION> (18,710)
<TOTAL-ASSETS> 50,485
<CURRENT-LIABILITIES> 24,561
<BONDS> 0
0
0
<COMMON> 335
<OTHER-SE> 11,542
<TOTAL-LIABILITY-AND-EQUITY> 50,485
<SALES> 34,659
<TOTAL-REVENUES> 34,659
<CGS> 22,965
<TOTAL-COSTS> 35,458
<OTHER-EXPENSES> 593
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 829
<INCOME-PRETAX> (2,221)
<INCOME-TAX> (666)
<INCOME-CONTINUING> (1,555)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,555)
<EPS-PRIMARY> (.46)
<EPS-DILUTED> (.46)
</TABLE>
