UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended March 30, 1997
Commission File Number 0-16852
KOMAG, INCORPORATED
(Registrant)
Incorporated in the State of Delaware
I.R.S. Employer Identification Number 94-2914864
1704 Automation Parkway, San Jose, California 95131
Telephone: (408) 576-2000
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
--- ---
On March 30, 1997, 51,897,255 shares of the Registrant's common stock, $0.01 par
value, were issued and outstanding.
<PAGE>
INDEX
KOMAG, INCORPORATED
Page No.
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements (Unaudited)
Consolidated statements of income--Three months
ended March 30, 1997, and March 31, 1996. . . . . . . . . 3
Consolidated balance sheets--March 30, 1997,
and December 29, 1996 . . . . . . . . . . . . . . . . . . 4
Consolidated statements of cash flows--Three months
ended March 30, 1997, and March 31, 1996. . . . . . . . . 5
Notes to consolidated financial statements--
March 30, 1997 . . . . . . . . . . . . . . . . . . . . . 6-8
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations . . . . .9-13
PART II. OTHER INFORMATION
Item 1. Legal Proceedings . . . . . . . . . . . . . . . . . . . . 14
Item 2. Changes in Securities . . . . . . . . . . . . . . . . . . 14
Item 3. Defaults Upon Senior Securities . . . . . . . . . . . . . 14
Item 4. Submission of Matters to a Vote of Security Holders . . . 14
Item 5. Other Information . . . . . . . . . . . . . . . . . . . . 14
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . 14
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
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<PAGE>
PART I. FINANCIAL INFORMATION
<TABLE>
KOMAG, INCORPORATED
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, except per share data)
(Unaudited)
<CAPTION>
Three Months Ended
-----------------------
March 30 March 31
1997 1996
--------- ---------
<S> <C> <C>
Net sales $ 167,242 $ 152,839
Cost of sales 127,927 88,350
--------- ---------
GROSS PROFIT 39,315 64,489
Operating expenses:
Research, development and engineering 12,013 6,648
Selling, general and administrative 10,145 10,818
--------- ---------
22,158 17,466
--------- ---------
OPERATING INCOME 17,157 47,023
Other income (expense):
Interest income 1,185 2,282
Interest expense (1,467) (106)
Other, net 687 58
--------- ---------
405 2,234
--------- ---------
Income before income taxes, minority interest,
and equity in joint venture income 17,562 49,257
Provision for income taxes 2,986 10,839
--------- ---------
Income before minority interest and equity in
joint venture income 14,576 38,418
Minority interest in net income of consolidated subsidiary 182 180
Equity in net income of unconsolidated joint venture 3,405 4,266
--------- ---------
NET INCOME $ 17,799 $ 42,504
========= =========
Net income per share $ 0.33 $ 0.80
========= =========
Number of shares used in per share computation 53,906 53,093
========= =========
<FN>
See notes to consolidated financial statements
</FN>
</TABLE>
-3-
<PAGE>
<TABLE>
KOMAG, INCORPORATED
CONSOLIDATED BALANCE SHEETS
(In Thousands)
<CAPTION>
March 30 December 29
1997 1996
----------- -----------
(unaudited) (note)
<S> <C> <C>
ASSETS
Current Assets
Cash and cash equivalents $ 93,774 $ 90,741
Short-term investments 16,735 2,500
Accounts receivable less allowances of
$3,018 in 1997 and $3,087 in 1996 72,645 55,676
Accounts receivable from related parties 13,613 8,449
Inventories:
Raw materials 28,401 33,734
Work-in-process 24,068 21,774
Finished goods 9,163 6,452
----------- -----------
Total inventories 61,632 61,960
Prepaid expenses and deposits 7,051 16,192
Deferred income taxes 15,579 15,579
----------- -----------
Total current assets 281,029 251,097
Investment in Unconsolidated Joint Venture 40,068 39,754
Property, Plant and Equipment
Land 9,367 9,367
Building 109,552 110,991
Equipment 725,952 673,210
Furniture 10,747 7,754
Leasehold Improvements 144,304 131,737
----------- -----------
999,922 933,059
Less allowances for depreciation and amortization (317,296) (289,353)
----------- -----------
Net property, plant and equipment 682,626 643,706
Deposits and Other Assets 3,936 3,800
----------- -----------
$ 1,007,659 $ 938,357
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Trade accounts payable $ 52,853 $ 80,089
Accounts payable to related parties 4,722 3,294
Accrued compensation and benefits 19,869 21,835
Other liabilities 3,282 1,913
Income taxes payable 4,017 1,824
----------- -----------
Total current liabilities 84,743 108,955
Long-term Debt 145,000 70,000
Deferred Income Taxes 57,806 57,806
Other Long-term Liabilities 620 497
Minority Interest in Consolidated Subsidiary 3,341 3,159
Stockholders' Equity
Preferred stock -- --
Common stock 519 517
Additional paid-in capital 390,269 388,305
Retained earnings 321,378 303,579
Accumulated foreign currency translation adjustments 3,983 5,539
----------- -----------
Total stockholders' equity 716,149 697,940
----------- -----------
$ 1,007,659 $ 938,357
=========== ===========
<FN>
Note: The balance sheet at December 29, 1996 has been derived from the
audited financial statements at that date.
See notes to consolidated financial statements.
</FN>
</TABLE>
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<PAGE>
<TABLE>
KOMAG, INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
<CAPTION>
Three Months Ended
--------------------
March 30 March 31
1997 1996
-------- --------
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 17,799 $ 42,504
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 28,576 17,931
Provision for losses on accounts receivable 1,034 (324)
Equity in net income of unconsolidated joint venture (3,405) (4,266)
(Gain)/loss on disposal of equipment (79) 127
Deferred rent 123 16
Minority interest in net income of consolidated subsidiary 182 180
Changes in operating assets and liabilities:
Accounts receivable (18,003) 7,823
Accounts receivable from related parties (5,164) (2,541)
Inventories 328 (10,242)
Prepaid expenses and deposits (860) (678)
Trade accounts payable (27,236) 11,609
Accounts payable to related parties 1,428 (4,473)
Accrued compensation and benefits (1,966) (11,616)
Other liabilities 1,369 (550)
Income taxes payable 12,194 1,376
-------- --------
Net cash provided by operating activities 6,320 46,876
INVESTING ACTIVITIES
Acquisition of property, plant and equipment (67,560) (64,390)
Purchases of short-term investments (14,235) (163)
Proceeds from short-term investments at maturity -- 46,688
Proceeds from disposal of equipment 327 20
Deposits and other assets (320) (270)
Dividend distribution from unconsolidated joint venture 1,535 --
-------- --------
Net cash used in investing activities (80,253) (18,115)
FINANCING ACTIVITIES
Increase in long-term obligations 75,000 --
Sale of Common Stock, net of issuance costs 1,966 1,305
Distribution to minority interest holder -- (279)
-------- --------
Net cash provided by financing activities 76,966 1,026
Increase in cash and cash equivalents 3,033 29,787
Cash and cash equivalents at beginning of year 90,741 14,879
-------- --------
Cash and cash equivalents at end of period $ 93,774 $ 44,666
======== ========
<FN>
See notes to consolidated financial statements.
</FN>
</TABLE>
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<PAGE>
KOMAG, INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
MARCH 30, 1997
NOTE 1 - BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of Management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the three-month period ended March 30, 1997
are not necessarily indicative of the results that may be expected for the year
ending December 28, 1997.
For further information, refer to the consolidated financial statements
and footnotes thereto included in the Company's Annual Report on Form 10-K for
the year ended December 29, 1996.
The Company uses a 52-53 week fiscal year ending on the Sunday closest
to December 31. The three-month reporting periods for the comparable years
included in this report are each comprised of thirteen weeks.
-6-
<PAGE>
NOTE 2 - INVESTMENT IN DEBT SECURITIES
The Company invests its excess cash in high-quality, short-term debt
and equity instruments. None of the Company's investments in debt securities
have maturities greater than one year. The following is a summary of the
Company's investments by major security type at amortized cost which
approximates fair value:
Mar 30 Dec 29
(in thousands) 1997 1996
---------- ---------
Corporate debt securities $70,560 $55,618
Mortgage-backed securities 39,353 35,699
Municipal auction rate preferred stock 16,735 2,500
---------- ---------
$126,648 $93,817
========== =========
Amounts included in cash and cash equivalents $109,913 $91,317
Amounts included in short-term investments 16,735 2,500
---------- ---------
$126,648 $93,817
========== =========
The Company utilizes zero-balance accounts and other cash management
tools to invest all available funds including bank balances in excess of book
balances.
NOTE 3 - INCOME TAXES
The estimated annual effective income tax rate for 1997 of 17% is lower
than the 1997 combined federal and state statutory rate of 41% and unchanged
from the effective income tax rate for 1996 of 17%. The difference between the
effective tax rate and the combined statutory rate is primarily due to an
initial five-year tax holiday (commencing in July 1993) for the Company's
wholly-owned thin-film media operation, Komag USA (Malaysia) Sdn. ("KMS").
Assuming KMS fulfills certain commitments under its license to operate within
Malaysia, this initial tax holiday may be extended for an additional five-year
period by the Malaysian government. KMS has also been granted a ten-year tax
holiday for its second and third plant sites in Malaysia. This new tax holiday
has not yet commenced at March 30, 1997.
NOTE 4 - TERM DEBT AND LINES OF CREDIT
In February 1997, the Company increased its total credit facilities to
$265,000,000 through the addition of a new five-year $75,000,000 term loan and a
$15,000,000 increase in an existing credit facility. The term loan expires in
2002. The Company has drawn down $145,000,000 under these facilities.
-7-
<PAGE>
NOTE 5 - EARNINGS PER SHARE
In February 1997, the Financial Accounting Standards Board issued
Statement No. 128, "Earnings per Share", which the Company is required to adopt
for its fiscal year ending December 29, 1997. At that time, the Company will be
required to change the method currently used to compute earnings per share and
to restate all prior periods. Under the new requirements for calculating primary
earnings per share, the dilutive effect of stock options will be excluded. The
impact is expected to result in an increase in primary earnings per share for
the first quarter ended March 30, 1997 and March 31, 1996 of $0.01 and $0.04 per
share, respectively. The Company has not yet determined what the impact of
Statement 128 will be on the calculation of fully diluted earnings per share.
-8-
<PAGE>
KOMAG, INCORPORATED
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations:
The following discussion contains predictions, estimates and other
forward-looking statements that involve a number of risks and uncertainties.
While this outlook represents the Company's current judgment on the future
direction of the business, such risks and uncertainties could cause actual
results to differ materially from any future performance suggested herein.
Factors that could cause actual results to differ include the following: the
rate of improvement in manufacturing efficiencies on magnetoresistive ("MR") and
proximity-inductive products; utilization of manufacturing facilities; industry
supply-demand relationship and related pricing for high-end desktop and
enterprise disk products; vertical integration and consolidation within the
Company's limited customer base; increased competition; extensibility of process
equipment to meet more stringent future product requirements; product
transitions to next-generation products; availability of certain sole-sourced
raw material supplies; execution of planned capacity additions; and the risk
factors listed in the Company's Form 10-K filed in March 1997. The Company
undertakes no obligation to publicly release the result of any revisions to
these forward-looking statements which may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
Revenue
Net sales of thin-film media increased 9% in the first quarter of 1997
relative to the first quarter of 1996. The net effect of a higher unit sales
volume and a slight decrease in the overall average selling price resulted in
the increased net sales. The overall average selling price typically strengthens
only as the result of product transitions to higher-priced, more technologically
advanced product offerings. Price reductions for individual product offerings
are characteristic of the thin-film media industry. The Company began a rapid
transition to new magnetoresistive ("MR") and proximity-inductive product
offerings in the second half of 1996. Sales of these products increased rapidly
and accounted for 76% of unit sales in the first quarter of 1997. The effect of
the sales mix shift to these new higher-priced, next-generation products offset
most of the effect of price reductions on maturing inductive disk products and
resulted in only a slight decrease in the overall average selling price.
In addition to sales of internally produced disk products, the Company
resells products manufactured by its Japanese joint venture, Asahi Komag Co.,
Ltd. (AKCL). Distribution sales of thin-film media manufactured by AKCL were
$2.7 million in the first quarter of 1997
-9-
<PAGE>
compared to $0.3 million in the first quarter of 1996. The Company expects that
distribution sales of AKCL product will remain at a relatively low level
throughout 1997.
During the first quarter of 1997 three customers individually accounted
for at least ten percent of consolidated net sales: Seagate Technology, Inc.
(31%), Western Digital Corporation (26%) and Quantum Corporation, together with
its Japanese manufacturing partner, Matsushita-Kotobuki Electronics Industries,
Ltd. ("MKE") (22%). The Company expects that it will continue to derive a
substantial portion of its sales from relatively few customers. The distribution
of sales among customers may vary from quarter to quarter based on the match of
the Company's product capabilities with specific disk drive programs of the
customers.
Unit production increased approximately 6% in the first quarter of 1997
relative to the first quarter of 1996. Increased production volume typically
occurs due to increased physical capacity (additional sputtering lines) and/or
improvements in manufacturing efficiencies (improved production throughput from
higher yields, better equipment utilization, and shorter process cycle times).
The combination of substantially lower yields for new products and a reduction
in equipment utilization largely offset the effects of a 22% increase in
physical capacity in the first quarter of 1997 relative to the first quarter of
1996. Sputtering cycle times improved slightly between the periods. In the first
quarter of 1996, the Company was primarily producing mature product offerings
with stable, higher yield and utilization rates. Production of the new MR and
proximity product families began in the last half of 1996 at substantially lower
yields. Additionally, increased development time for these new products,
incurred on manufacturing machines, resulted in lower manufacturing equipment
utilization rates.
The Company increased unit output in the first quarter of 1997
approximately 16% relative to the fourth quarter of 1996. The higher sequential
output was primarily due to an increase in manufacturing yields and production
capacity. Equipment utilization also rose slightly on a sequential basis. The
Company expects another strong sequential increase in production output in the
second quarter of 1997 as a result of further yield gains and the addition of
two new production lines. One of these lines will be the Company's first
higher-throughput new design ("ND") sputtering machine. A second ND production
line is expected to be added in Penang in the second half of 1997. The rate of
quarter-to-quarter growth in unit production during the second half of 1997 will
depend, in large measure, on the achievement of further yield gains, the levels
of equipment utilization and throughput, and the effectiveness of the ND
sputtering machines. Given the timing of planned capacity additions and expected
productivity improvements, the growth rate in quarterly production output,
measured on a percentage basis from the prior quarter, will slow during the
second half of 1997.
-10-
<PAGE>
Gross Margin
The gross margin percentage for the first quarter of 1997 was 24%, down
significantly from the 42% gross margin percentage achieved for the first
quarter of 1996. Lower manufacturing yields and reduced equipment utilization
rates in the first quarter of 1997 relative to the first quarter of 1996,
combined with inherently higher product costs for the new MR and advanced
proximity disks, resulted in the lower gross margin percentage. Sequentially,
the Company's gross margin improved from the 12% gross margin percentage
achieved for the fourth quarter of 1996. The Company anticipates that additional
manufacturing yield improvements should result in further gross margin
improvement in the second quarter of 1997. The Company believes that yield and
utilization gains will be necessary to achieve the Company's previously
announced, second half of 1997, targeted gross margin range of 30-35%.
Operating Expenses
Research and development ("R&D") expenses increased 81% ($5.4 million)
in the first quarter of 1997 relative to the first quarter of 1996. In the first
quarter of 1997 the Company completed construction of an R&D facility and
installed a sputtering line devoted exclusively to R&D efforts. The Company
expects to fully test and develop new products and processes on the R&D
sputtering line prior to their introduction into manufacturing. Use of the
dedicated R&D sputtering line for large-scale pilot production runs will
eventually minimize the use of existing manufacturing production lines for this
purpose. Relocation costs related to the move to the new facility, including
costs to move and install existing R&D equipment, amounted to approximately $2.1
million in the first quarter of 1997. The remaining increase resulted from costs
for increased R&D staffing and higher costs related to the new facility. The
Company expects to increase R&D spending to approximately $50 million in 1997
from $29 million in 1996. Costs for the new facility, sputtering line and
additional staffing account for the planned increase.
Selling, general and administrative ("SG&A") expenses decreased
approximately 6% ($0.7 million) in the first quarter of 1997 relative to the
first quarter of 1996. The Company's provisions for bonus and profit sharing
programs decreased $2.4 million between the comparable three-month periods.
Provisions for bad debt increased $1.4 million between the periods. Excluding
provisions for bad debt and the Company's bonus and profit sharing programs,
SG&A expenses increased $0.3 million.
Interest and Other Income/Expense Interest income decreased $1.1
million in the first quarter of 1997 relative to the first quarter of 1996. The
decrease is primarily due to a lower average cash and short-term investment
balance in the current year period. Interest expense increased $1.4 million in
the
-11-
<PAGE>
first quarter of 1997 compared to the first quarter of 1996. The Company
borrowed $145.0 million under its credit facilities between the beginning of
December 1996 and the end of March 1997. The Company had no outstanding debt in
the first quarter of 1996. Other income increased approximately $0.6 million in
the first quarter of 1997 compared to the first quarter of 1996. Other income in
the first quarter of 1997 included approximately $0.8 million of royalty income
from AKCL for sales made by AKCL outside of Japan. No such royalty was received
in the first quarter of 1996.
Income Taxes
The estimated annual effective income tax rate for 1997 of 17% is lower
than the 1997 combined federal and state statutory rate of 41% and unchanged
from the effective income tax rate for 1996 of 17%. The difference between the
effective tax rate and the combined statutory rate is primarily due to an
initial five-year tax holiday (commencing in July 1993) for the Company's
wholly-owned thin-film media operation, Komag USA (Malaysia) Sdn. ("KMS").
Assuming KMS fulfills certain commitments under its license to operate within
Malaysia, this initial tax holiday may be extended for an additional five-year
period by the Malaysian government. KMS has also been granted a ten-year tax
holiday for its second and third plant sites in Malaysia. This new tax holiday
has not yet commenced at March 30, 1997.
Minority Interest in KMT/Equity in Net Income of AKCL
The minority interest in the net income of consolidated subsidiary
represented Kobe Steel USA Holdings Inc.'s ("Kobe USA's") 20% share of Komag
Material Technology, Inc.'s ("KMT's") net income. KMT recorded net income of
$0.9 million in the first quarter of both 1997 and 1996.
The Company records 50% of AKCL's net income as equity in net income of
unconsolidated joint venture. AKCL reported net income of $6.8 million in the
first quarter of 1997, down from $8.6 million in the first quarter of 1996. In
the first quarter of 1997, AKCL sold its entire interest in Headway
Technologies, Inc. ("Headway") for $10.8 million and recorded a gain of $5.3
million (net of tax). In contrast, AKCL's results for the first quarter of 1996
included a writedown of $1.0 million (net of tax) related to its Headway
investment. Excluding the Headway items, AKCL's net income decreased to $1.5
million in the first quarter of 1997 from $9.6 million in the first quarter of
1996. Higher costs and lower yields related to the transition to new MR and
advanced proximity products dampened AKCL's results in the first quarter of 1997
relative to the first quarter of 1996. While AKCL's manufacturing yields
improved sequentially in the first quarter of 1997 from the fourth quarter of
1996, product qualification issues at AKCL will most likely cause the joint
venture's operating performance to decline sequentially between the first and
second quarters of 1997.
-12-
<PAGE>
As a result of the expected decline in AKCL's operating performance and
without the positive effect of the one-time investment gain, AKCL's equity
contribution to the Company is expected to be sharply lower and possibly
negative in the second quarter of 1997.
Liquidity and Capital Resources:
Cash and short-term investments of $110.5 million at the end of the
first quarter of 1997 increased $17.3 million from the end of the prior fiscal
year. Consolidated operating activities generated $6.3 million in cash during
the first three-month period of 1997. The Company borrowed $75.0 million under
its credit facilities and spent $67.6 million on capital requirements during the
first quarter of 1997. Sales of Common Stock under the Company's stock option
program and a dividend received from AKCL during this period generated $2.0
million and $1.5 million, respectively.
Total capital expenditures for 1997 are currently planned at
approximately $290 million. The 1997 capital spending plan includes costs to
equip the Company's two newest back end manufacturing facilities in Penang,
Malaysia and San Jose, California. Additionally, the plan includes costs to
complete and equip the Company's 188,000 square foot research and development
facility and 82,000 square foot administration facility, which were occupied in
February and March 1997, respectively.
Current noncancellable capital commitments total approximately $125
million. The Company believes that in order to achieve its long-term expansion
objectives and maintain and enhance its competitive position, it will need
additional financing for capital expenditures, working capital, and research and
development. The Company believes that it will be able to fund its 1997
expenditures through a combination of cash generated from operations, funds
available from existing bank lines of credit, and existing cash balances.
However, the Company may obtain additional debt or equity financing in 1997 to
maintain adequate cash reserves. If the Company is unable to obtain sufficient
capital it could be required to reduce its capital equipment and research and
development expenditures which could have a material adverse effect on the
Company's results of operations.
-13-
<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
(a) Exhibit 27-Financial Data Schedule
(b) Not Applicable
-14-
<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.
KOMAG, INCORPORATED
(Registrant)
DATE: April 28, 1997 BY: /s/ William L. Potts, Jr.
------------------ --------------------------------------
William L. Potts, Jr.
Senior Vice President and
Chief Financial Officer
DATE: April 28, 1997 BY: /s/ Stephen C. Johnson
----------------- --------------------------------------
Stephen C. Johnson
President and
Chief Executive Officer
-15-
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-28-1997
<PERIOD-START> DEC-30-1996
<PERIOD-END> MAR-30-1997
<EXCHANGE-RATE> 1
<CASH> 93,774
<SECURITIES> 16,735
<RECEIVABLES> 72,570
<ALLOWANCES> 3,018
<INVENTORY> 61,632
<CURRENT-ASSETS> 281,029
<PP&E> 999,922
<DEPRECIATION> (317,296)
<TOTAL-ASSETS> 1,007,659
<CURRENT-LIABILITIES> 84,743
<BONDS> 145,000
<COMMON> 519
0
0
<OTHER-SE> 715,630
<TOTAL-LIABILITY-AND-EQUITY> 1,007,659
<SALES> 167,242
<TOTAL-REVENUES> 167,242
<CGS> 127,927
<TOTAL-COSTS> 127,927
<OTHER-EXPENSES> 12,757
<LOSS-PROVISION> 1,034
<INTEREST-EXPENSE> 1,467
<INCOME-PRETAX> 17,562
<INCOME-TAX> 2,986
<INCOME-CONTINUING> 17,799
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 17,799
<EPS-PRIMARY> 0.33
<EPS-DILUTED> 0.33
</TABLE>
