<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, 1999
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, 1999, there were 3,768,796 shares of Registrant's $0.10 par value
Common Stock outstanding.
<PAGE>
LOWRANCE ELECTRONICS, INC.
--------------------------
FORM 10-Q
---------
INDEX
-----
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
PART I. FINANCIAL INFORMATION
ITEM 1. Condensed Consolidated Balance Sheets -
January 31, 1999, 1998, and July 31, 1998.................................. 3
Consolidated Statements of Operations -
Three Months and Six Months Ended
January 31, 1999 and 1998.................................................. 4
Consolidated Statements of Cash Flows -
Six Months Ended January 31, 1999 and 1998................................. 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
</TABLE>
2
<PAGE>
LOWRANCE ELECTRONICS, INC.
--------------------------
CONDENSED CONSOLIDATED BALANCE SHEETS
-------------------------------------
(unaudited)
---------
<TABLE>
<CAPTION>
Jan. 31, Jan. 31, July 31,
1999 1998 1998
-------- -------- --------
(in thousands)
<S> <C> <C> <C>
ASSETS
------
CURRENT ASSETS:
Cash and cash equivalents $ 519 $ 586 $ 637
Accounts receivable, less allowances 14,241 18,059 13,742
Inventories (Note 2) 22,045 25,024 25,224
Prepaid expenses 398 616 610
Current deferred income taxes 1,453 1,587 1,457
--------- -------- ---------
Total current assets $ 38,656 $ 45,872 $ 41,670
PROPERTY, PLANT, AND EQUIPMENT, net (Note 2) 8,764 10,343 9,891
OTHER ASSETS 209 722 277
DEFERRED INCOME TAXES 1,553 1,664 409
--------- -------- ---------
$ 49,182 $ 58,601 $ 52,247
========= ======== =========
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
<S> <C> <C> <C>
CURRENT LIABILITIES:
Current maturities of long-term debt (Note 3) $ 3,072 $ 7,070 $ 3,498
Accounts payable 12,862 15,996 15,026
Accrued liabilities 3,558 3,421 3,513
--------- -------- ---------
Total current liabilities $ 19,492 $ 26,487 $ 22,037
LONG-TERM DEBT, less current
maturities (Note 3) 24,185 21,945 23,038
SERIES "A" REDEEMABLE PREFERRED STOCK,
$.50 par value, 70,000 shares authorized and issued - - -
STOCKHOLDERS' EQUITY:
Preferred stock, 230,000 shares authorized,
none issued - - -
Common stock, $.10 par value, 10,000,000 shares
authorized, 3,768,796 shares issued at January 31, 1999
and July 31, 1998, 3,762,296 shares issued at
January 31, 1998 $ 377 $ 376 $ 377
Paid-in capital 7,073 7,059 7,073
Retained earnings (1,647) 3,039 219
Foreign currency translation adjustment (298) (305) (497)
--------- -------- ---------
Total stockholders' equity $ 5,505 $ 10,169 $ 7,172
--------- -------- ---------
$ 49,182 $ 58,601 $ 52,247
========= ======== =========
</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,
1999 1998 1999 1998
--------------- ------------- -------------- -------------
(in thousands) (in thousands)
<S> <C> <C> <C> <C>
NET SALES $ 17,922 $ 20,324 $34,130 $40,363
COST OF SALES 12,080 14,495 23,355 29,193
-------- -------- ------- -------
Gross profit $ 5,842 $ 5,829 $10,775 $11,170
-------- -------- ------- -------
OPERATING EXPENSES:
Selling and administrative $ 4,830 $ 4,490 $ 9,689 $ 9,286
Severance costs 204 - 731 -
Research and development 610 778 1,227 1,568
-------- -------- ------- -------
Total operating expenses $ 5,644 $ 5,268 $11,647 $10,854
-------- -------- ------- -------
Operating income (loss) $ 198 $ 561 $ (872) $ 316
-------- -------- -------- -------
OTHER EXPENSES:
Interest expense $ 761 821 $ 1,502 $ 1,562
Other, net 324 258 588 562
-------- -------- ------- -------
Total other expenses $ 1,085 $ 1,079 $ 2,090 $ 2,124
-------- -------- ------- -------
LOSS BEFORE
INCOME TAXES $ (887) $ (518) $(2,962) $(1,808)
BENEFIT FROM INCOME TAXES (328) (181) (1,096) (633)
-------- -------- ------- -------
NET LOSS $ (559) $ (337) $(1,866) $(1,175)
-------- -------- ------- -------
OTHER COMPREHENSIVE LOSS,
NET OF TAX:
FOREIGN CURRENCY TRANSLATION
ADJUSTMENT $ 54 $ (85) $ 199 $ (108)
-------- -------- ------- -------
COMPREHENSIVE LOSS $ (505) $ (422) $(1,667) $(1,283)
======== ======== ======= =======
LOSS PER COMMON SHARE:
NET LOSS PER SHARE $ (.15) $ (.09) $ (.50) $ (.34)
======== ======== ======= =======
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 3,768 3,584 3,768 3,468
======== ======== ======= =======
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,
1999 1998
------------ -----------
(in thousands)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (1,866) $ (1,175)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation 1,329 1,327
Gain on retirement of fixed assets (25) (4)
Changes in operating assets and liabilities:
Increase in accounts receivable (499) (1,713)
Decrease in inventories 3,179 2,856
(Increase) decrease in prepaids, deferred
income taxes, and other assets (860) 476
Decrease in liabilities and other (1,921) (6,780)
---------- ----------
Net cash used in operating activities $ (663) $ (5,013)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures $ (213) $ (454)
Proceeds from sales of property 25 -
---------- ----------
Net cash used in investing activities $ (188) (454)
CASH FLOWS FROM FINANCING ACTIVITIES (Note 3):
Borrowings under line of credit $ 32,277 $ 39,928
Repayments of borrowings under line of credit (32,335) (40,785)
Borrowings under term loan agreement 1,800 5,000
Principal payments on term loans and capital
lease obligations (1,009) (758)
Other borrowings - 302
Proceeds from issuance of common stock - 1,500
---------- ----------
Net cash provided by financing activities $ 733 $ 5,187
---------- ----------
Net decrease in cash and cash equivalents $ (118) $ (280)
CASH AND CASH EQUIVALENTS - beginning of period 637 866
---------- ----------
CASH AND CASH EQUIVALENTS - end of period $ 519 $ 586
========== ==========
</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, 1999, are the same as those outlined in
the Annual Report on Form 10-K filed relative to the year ended July 31,
1998. 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,
1999 1998 1998
-------- -------- --------
(in thousands)
<S> <C> <C> <C>
Raw materials $ 7,682 $ 9,518 $ 6,127
Work-in-process 3,532 5,984 4,820
Finished goods 12,386 10,738 15,887
Excess, obsolete and realization reserves (1,555) (1,216) (1,610)
-------- -------- --------
Total inventories $ 22,045 $ 25,024 $ 25,224
======== ======== ========
Property, Plant, and Equipment, Net-
-----------------------------------
Land $ 557 $ 557 $ 557
Building and improvements 4,491 4,503 4,354
Machinery and equipment 24,902 24,037 24,990
Office furniture and equipment 3,501 5,142 5,141
-------- -------- --------
$ 33,451 $ 34,239 $ 35,042
Less - accumulated depreciation 24,687 23,896 25,151
-------- -------- --------
Net property, plant, and equipment $ 8,764 $ 10,343 $ 9,891
======== ======== ========
</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,
1999 1998 1998
-------- -------- --------
(in thousands)
<S> <C> <C> <C>
Revolving credit line $ 17,346 $ 17,764 $ 17,404
Term loan 6,871 7,348 5,410
Capitalized equipment lease obligations, payable in
monthly installments of approximately $121,000
including interest at rates from 7% to 12%, with
final payments ranging from February 1999 through November 2001 3,040 3,601 3,722
Other - 302 -
-------- -------- --------
$ 27,257 $ 29,015 $ 26,536
Less - current maturities 3,072 7,070 3,498
-------- -------- --------
Total long-term debt $ 24,185 $ 21,945 $ 23,038
======== ======== ========
</TABLE>
Future maturities of the above debt obligations at January 31, 1999, are
$3,072,000, $7,298,000, and $16,887,000 for the years ending January 31,
2000 through 2002, respectively.
At July 31, 1998, the Company had a $33.9 million financing package which
consisted of $7.4 million in term loans together with a $26.5 million
revolving credit line. The revolving credit line provides for borrowings
up to $26.5 million based on varying percentages of qualifying categories
of receivables and inventories and carried an interest rate of prime plus
1.5%. Borrowing against inventories are limited to $13 million in total.
During September and November 1998, the Company's financing package was
amended. Significant provisions of the amendments included 1) an
additional advance of $1.8 million on an existing term loan. The Company
has two repayment options; (A) repayment of the $1.8 million advance in
February 1999, or (B) amortize the entire $4.8 million term loan
(including the $1.8 million advance) over 60 months beginning in March
1999 with a due date of December 2000. Under either option, principal
payments of $80,000 per month are required beginning in March 1999, and
2) changes in certain financial covenants.
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, limits the ratio of total liabilities to
tangible net worth and requires the Company to maintain a minimum fixed
charge ratio. 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.
7
<PAGE>
(4) STOCKHOLDERS' EQUITY
During the six months ended January 31, 1999, Stockholders' Equity
changed for the following items: Net loss of $1,866,000 and a $199,000
decrease in the negative Foreign currency translation adjustment.
(5) CONSOLIDATED STATEMENTS OF CASH FLOWS
During the six months ended January 31, 1999, and January 31, 1998, the
Company paid interest of $1,454,000 and $1,562,000, respectively.
(6) SEVERANCE COSTS
During the first six months of fiscal 1999, the Company recognized
$731,000 in severance costs related to Tulsa workforce reductions. The
efforts are aimed at reducing costs through headcount elimination as well
as the transferring of certain production related jobs to the Company's
Mexico manufacturing facility. The total number of employees affected was
sixty nine. Through January 31, 1999 approximately forty-nine employees
had been terminated and payments of approximately $315,000 had been made.
The remaining severance benefits are anticipated to be paid throughout
the remainder of fiscal 1999.
(7) REPORTING COMPREHENSIVE INCOME
As of August 1, 1998, the Company adopted Statement of Financial
Accounting Standards No. 130 (SFAS 130), "Reporting Comprehensive
Income." SFAS 130 establishes new rules for the reporting and display of
comprehensive income and its components; however, the adoption of this
Statement had no impact on the Company's net income or stockholder's
equity.
(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 November 13, 1998.
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, 1999, decreased 11.8% when
compared to the same period last year. Unit sales declined by 11% while the
average selling price per unit was unchanged. Unit sales decreased primarily in
low cost permanent mount and portable GPS products. The decline in GPS unit
sales resulted from increased competition, particularly at the lowest price
points.
Gross profit as a percentage of net sales increased to 32.6% from 28.7% for the
three months ended January 31, 1999, compared to the same period in fiscal 1998.
This increase results from price increases on certain models as well as a shift
in mix of products sold toward the Company's higher margin units.
Net sales for the six months ended January 31, 1999 decreased 15.4% when
compared to the same period in fiscal 1998. All of the sales decrease was the
result of a decline in unit sales as the average price per unit was unchanged.
Lower sales of low cost permanent mount and portable GPS products accounted for
the sales decline for the same reasons stated above.
Gross profit as a percentage of net sales for the six months ended January 31,
1999, was 31.6% compared to 27.7% for the same period in fiscal 1998. Gross
margins improved for the same reasons noted above.
Operating expenses, excluding severance costs, as a percentage of net sales for
the three months ended January 31, 1999, were 30.4% compared to 25.9% during the
same period in fiscal 1998. Total costs increased by $172,000. The increases in
cost were primarily to promote and advertise the Company's new CD ROM mapping
GPS and combo GPS/sonar models. These products began shipping late in the fourth
quarter of fiscal 1998.
Operating expenses, excluding severance costs, as a percentage of net sales for
the six months ended January 31, 1999 were 32% compared to 26.9% for the same
period in 1998. Total costs increased $62,000. This increase results from the
factors noted above.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
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 $13 million in
total. The terms of the line of credit are described in Notes to Condensed
Consolidated Financial Statements contained elsewhere in this report.
Traditionally, the Company's near-term liquidity is at its lowest during the
period August through December due to the limits on borrowings against
inventories, cash outlays required to purchase tooling to manufacture new
products, and extended payment terms offered to customers to stimulate sales
during the seasonally slow period. This year's liquidity was tighter than normal
during the fall because of losses incurred during the previous two fiscal years.
It is during this period that the Company begins to manufacture and build-up
inventory levels in anticipation of product demands for the peak sales months of
January through April. By the end of the second quarter sales have historically
increased and the Company's sources of liquidity begin to improve.
During fiscal 1997, the Company began relocating certain of its manufacturing
operations to its new plant in Mexico. The start-up of the new facility in
Mexico was substantially on schedule. However, record low unemployment rates in
Tulsa resulted in excessive turnover of production workers and an inability to
maintain sufficient trained staff to support the Company's substantially
increased production schedule intended to support record demand for its GPS
products. This problem was magnified by management's focus on the start-up of
the new Mexico facility and production delays of the Company's six new sonar
models. These problems caused an excessive build-up of raw material and work-in
process inventories that
9
<PAGE>
the Company could not convert to finished goods until after the peak selling
season. These factors resulted in inventories remaining well above historical
levels throughout fiscal 1997. During fiscal 1998, first and second quarter
sales exceeded 1997 levels for the same periods, however, sales unexpectedly
declined during the third and fourth quarters. The timing of the sales decline
did not allow for reductions of shipments of raw materials from vendors. As a
result, inventory levels during 1998 continued to be higher than historical
levels. Inventory is expected to continue to gradually decline throughout fiscal
1999.
In November 1998, the Company's financing package was amended, giving the
Company additional term borrowings of $1.8 million under an existing term loan
and deferring principal payments until March 1, 1999 on an aggregate total term
loan of $4.8 million (including the additional $1.8 million borrowing). This
amended term loan contains two payment options; 1) repay the $1.8 million
advance in February 1999, then make monthly principal payments of $80,000
beginning March 1, 1999, or 2) amortize the entire $4.8 million term loan with
monthly principal payments of $80,000 beginning March 1, 1999. During February
1999 the Company elected the second option.
Management expects the sources discussed above to satisfy the Company's current
financing needs and expects to be at maximum borrowing limits throughout fiscal
1999. Because the line of credit will be at its maximum during this period, the
Company will be required to delay payments to vendors as it has historically
done. Management does not expect any significant long-term effect from these
delayed payments as most vendors have supplied the Company for many years.
Additionally, because of the additional financing noted above, overall lower
projected inventory levels and an expected return to profitability in fiscal
1999, the Company expects its level of past due payments during the second half
of 1999 to remain below the levels experienced in either fiscal 1997 or 1998.
Capital expenditures were $213,000 during the first six months of fiscal 1999
compared to $454,000 for fiscal 1998.
Outlook
- -------
Current backlog is approximately $10.6 million compared to approximately $10.2
million at the same time last year. It should be noted that fall and winter
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.
During fiscal 1997 and 1998, the Company incurred significant operating losses
and for the last three fiscal years has had negitive cash flows from operations.
In response to the operating results, the Company has addressed operational
problems related to the start-up of it's Mexico manufacturing facility and
related manufacturing operations which are still located in Tulsa, Oklahoma. The
Company has refocused its sales and marketing efforts to, 1) significantly
expand distribution of some of its more popular products under the Lowrance
brand name, and 2) increase expenditures for print advertising and boat show
participation and promotions which had decreased significantly in fiscal 1998.
In addition, as discussed above, the Company and its primary lender amended the
credit agreement to provide for an additional $1.8 million advance under an
existing loan to meet short-term vendor requirements related to past due
payables.
Currently, sales of the Company's products have responded favorably to increased
advertising and promotional visibility as evidenced by a 34% increase in net
sales for February 1999 versus the same month last year. The Company expects
this trend toward higher sales to continue, with third quarter sales for the
three months ended April 30, 1999 to be substantially higher than last year's
sales during the same period.
The Company currently anticipates a return to profitability for fiscal 1999,
primarily as the result of continuing favorable economic and market conditions,
market acceptance of the Company's 1999 product offering, the availability of
the entire product line for a full year, lower costs resulting from a full year
of production in the Company's Mexico facility and lower selling and
administrative costs. 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, interest rate fluctuations, and new product introductions by
competitors, could rapidly deteriorate, any one of which would have an adverse
affect on expected results for the remainder of the year.
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 16, 1999
12
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 6-MOS 6-MOS
<FISCAL-YEAR-END> JUL-31-1999 JUL-31-1999
<PERIOD-START> AUG-01-1998 AUG-01-1997
<PERIOD-END> JAN-31-1999 JAN-01-1998
<CASH> 519 586
<SECURITIES> 0 0
<RECEIVABLES> 15,028 18,482
<ALLOWANCES> (787) (423)
<INVENTORY> 22,045 25,024
<CURRENT-ASSETS> 38,656 45,872
<PP&E> 33,451 34,239
<DEPRECIATION> 24,687 23,896
<TOTAL-ASSETS> 49,182 58,601
<CURRENT-LIABILITIES> 19,492 26,487
<BONDS> 0 0
0 0
0 0
<COMMON> 377 376
<OTHER-SE> 5,128 9,793
<TOTAL-LIABILITY-AND-EQUITY> 49,182 58,601
<SALES> 34,130 40,363
<TOTAL-REVENUES> 34,130 40,363
<CGS> 23,355 29,193
<TOTAL-COSTS> 35,002 40,047
<OTHER-EXPENSES> 588 562
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 1,502 1,562
<INCOME-PRETAX> (2,962) (1,808)
<INCOME-TAX> (1,096) (633)
<INCOME-CONTINUING> (1,866) (1,175)
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> (1,866) (1,175)
<EPS-PRIMARY> .50 .34
<EPS-DILUTED> .50 .34
</TABLE>
