UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Period Ended March 25, 2000
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 0-17237
HOME PRODUCTS INTERNATIONAL, INC.
(Exact name of registrant as specified in its Charter)
Delaware 36-4147027
(State or other jurisdiction of (I.R.S Employer
incorporation or organization) Identification No.)
4501 West 47th Street Chicago, Illinois 60632
(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code (773) 890-1010.
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 [ ]
Common shares, par value $0.01, outstanding as of April 28, 2000 - 7,277,268
<PAGE>
HOME PRODUCTS INTERNATIONAL, INC
INDEX
Page
Number
------
Part I. Financial Information
Item 1. Financial Statements
Condensed Consolidated Balance Sheets ..... 3
Condensed Consolidated Statements of
Operations and Retained Earnings ........ 4
Condensed Consolidated Statements of
Cash Flows .............................. 5
Notes to Condensed Consolidated Financial
Statements .............................. 6
Item 2. Management's Discussion and
Analysis of Financial Condition and Results
of Operations ........................... 8
Item 3. Quantitative and Qualitative
Disclosures About Market Risk ............. 11
Part II. Other Information
Items 1 through 5 are not applicable
Item 6. Exhibits and Reports on Form 8-K. 13
Signature 13
<PAGE>
PART I Financial Information
ITEM 1. Financial Statements
<TABLE>
HOME PRODUCTS INTERNATIONAL, INC.
Condensed Consolidated Balance Sheets
(in thousands, except share amounts)
March 25, December 25,
2000 1999
(unaudited)
------- -------
<S> <C> <C>
Assets
Current assets:
Cash and cash equivalents ............... $ 2,853 $ 4,861
Accounts receivable, net ................ 53,057 59,571
Inventories, net ........................ 25,728 24,064
Prepaid expenses and other current assets 12,693 7,558
------- -------
Total current assets .................. 94,331 96,054
Property, plant and equipment - at cost.... 104,395 98,678
Less accumulated depreciation and
amortization........................... (34,723) (31,420)
------- -------
Property, plant and equipment, net......... 69,672 67,258
Intangible and other assets................ 178,833 180,594
------- -------
Total assets............................... $342,836 $343,906
======= =======
Liabilities and Stockholders' Equity
Current liabilities:
Current maturities of long-term obligations $ 5,558 $ 5,571
Accounts payable ........................ 27,598 23,820
Accrued liabilities ..................... 31,674 33,651
------- -------
Total current liabilities ............. 64,830 63,042
Long-term obligations - net of current
maturities............................... 219,562 221,334
Other liabilities.......................... 2,940 2,908
Stockholders' equity:
Preferred Stock - authorized, 500,000
shares, $.01 par value; - None issued.. - -
Common Stock - authorized 15,000,000
shares, $.01 par value; 8,099,662 shares
issued at March 25, 2000 and 8,068,863
shares issued at December 25, 1999 81 81
Additional paid-in capital .............. 48,899 48,800
Retained earnings ....................... 13,052 14,269
Common stock held in treasury - at cost
822,394 shares at March 25, 2000 and
December 25, 1999...................... (6,528) (6,528)
------- -------
Total stockholders' equity ............ 55,504 56,622
------- -------
Total liabilities and stockholders' equity. $342,836 $343,906
======= =======
The accompanying notes are an integral part of the financial statements.
</TABLE>
<PAGE>
<TABLE>
HOME PRODUCTS INTERNATIONAL, INC.
Condensed Consolidated Statements of Operations and Retained Earnings
(unaudited)
(in thousands, except per share amounts)
Thirteen Weeks Ended
---------------------
March 25, March 27,
2000 1999
------ ------
<S> <C> <C>
Net sales............................. $68,089 $67,799
Cost of goods sold.................... 48,797 45,177
------ ------
Gross profit ...................... 19,292 22,622
Operating expenses
Selling ........................... 10,479 9,910
Administrative .................... 3,872 4,655
Amortization of intangible assets . 1,320 1,365
------ ------
15,671 15,930
------ ------
Operating profit .................. 3,621 6,692
------ ------
Other income (expense)
Interest income ................... 15 70
Interest (expense) ................ (5,137) (4,954)
Other, net ........................ (597) 18
------ ------
(5,719) (4,866)
------ ------
Earnings (loss) before income taxes .. (2,098) 1,826
Income tax benefit (expense).......... 881 (767)
------ ------
Net earnings (loss)................... (1,217) 1,059
Retained earnings at beginning of period 14,269 12,259
------ ------
Retaining earnings at end of period... $13,052 $13,318
====== ======
Net earnings (loss) per common share -
basic............................... $ (0.17) $ 0.14
====== ======
Net earnings (loss) per common share -
diluted............................ $ (0.17) $ 0.13
====== ======
The accompanying notes are an integral part of the financial statements.
</TABLE>
<PAGE>
<TABLE>
HOME PRODUCTS INTERNATIONAL, INC.
Condensed Consolidated Statements of Cash Flows
(unaudited)
(dollars in thousands)
<CAPTION>
Thirteen weeks Ended
------------------------
March 25, March 27,
2000 1999
------- -------
<S> <C> <C>
Operating activities:
Net earnings (loss) ................... $ (1,217) $ 1,059
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization ........ 4,568 4,210
Changes in assets and liabilities:
Decrease in accounts receivable .... 6,514 1,262
(Increase) in inventories .......... (1,664) (2,435)
(Increase) decrease in prepaid
expenses and other current assets. (5,134) 5,604
Increase in accounts payable ....... 3,778 3,061
(Decrease) in accrued liabilities .. (1,977) (205)
Other operating activities, net ...... 470 (381)
------- -------
Net cash provided by operating activities 5,338 12,175
------- -------
Investing activities:
Proceeds on sale of business, net ..... - 4,692
Proceeds from sale of building, net ... - 977
Capital expenditures, net ............. (5,660) (5,326)
------- -------
Net cash (used) provided for investing
activities............................ (5,660) 343
------- -------
Financing activities:
Payments on borrowings ................ (1,750) (8,250)
Net proceeds from borrowings and warrants - 3,500
Payment of capital lease obligation ... (35) (107)
Purchase of treasury stock ............ - (817)
Exercise of stock options, issuance of
common stock under stock purchase plan
and other ........................... 99 74
------- -------
Net cash used by financing activities... (1,686) (5,600)
Net (decrease) increase in cash and cash
equivalents ......................... (2,008) 6,918
Cash and cash equivalents at beginning
of period ........................... 4,861 4,986
------- -------
Cash and cash equivalents at end of
period .............................. $ 2,853 $ 11,904
======= =======
<PAGE>
Supplemental disclosures: Cash paid in the
period for:
Interest .............................. $ 1,990 $ 635
------- -------
Income taxes, net ..................... $ - $ 1,525
------- -------
The accompanying notes are an integral part of the financial statements.
</TABLE>
<PAGE>
HOME PRODUCTS INTERNATIONAL, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(dollars in thousands, except per share amounts)
Note 1. Home Products International, Inc. (the "Company"), based in Chicago,
is a leading designer, manufacturer and marketer of a broad range of value-
priced, quality consumer houseware products. The Company's products are
marketed principally through mass-market trade channels in the United States
and internationally.
The condensed consolidated financial statements include the accounts of
the Company and its subsidiary companies. All significant intercompany
transactions and balances have been eliminated.
The unaudited condensed financial statements included herein as of and
for the thirteen weeks ended March 25, 2000 and for the thirteen weeks ended
March 27, 1999 reflect, in the opinion of the Company, all adjustments
(which include only normal recurring adjustments) necessary for the fair
presentation of the financial position, the results of operations and cash
flows. These unaudited financial statements should be read in conjunction
with the audited financial statements and related notes thereto included in
the Company's 1999 Annual Report on Form 10-K. The results for the interim
periods presented are not necessarily indicative of results to be expected
for the full year.
Note 2. In the first quarter of 2000 the Company incurred $598 of other non
recurring costs associated with the exploration of strategic alternatives
aimed at enhancing shareholder value. Such costs included fees related to
investment bankers, accountants, lawyers and travel expenses. These costs
are included in the "Other income (expense)" section of the Condensed
Consolidated Statements of Operation and Retained Earnings.
Note 3. Inventories are summarized as follows:
March 25, December 25,
2000 1999
------ ------
Finished goods ..................... $16,224 $15,890
Work-in-process .................... 3,288 2,168
Raw materials ...................... 6,216 6,006
------ ------
$25,728 $24,064
====== ======
<PAGE>
<TABLE>
Note 4. The following information reconciles net income (loss) per share -
basic and diluted:
For the 13 Weeks Ended
------------------------
March 25, March 27,
2000 1999
------- ------
<S> <C> <C>
Net income (loss)..................... $ (1,217) $ 1,059
======= ======
Weighted average common shares
outstanding - basic................. 7,277 7,661
Stock options and warrants............ - 221
------- ------
Weighted average common shares
outstanding - diluted............... 7,277 7,882
======= ======
Net earnings (loss) per share - basic. $ (0.17) $ 0.14
======= ======
Net earnings (loss) per share - diluted $ (0.17) $ 0.13
======= ======
</TABLE>
Stock options and warrants are not considered dilutive for the thirteen
week period ended March 25, 2000 because of the loss in the period. Had
there not been a loss in the period, the weighted average common shares
outstanding - diluted would have increased by 374 to 7,651.
Note 5.
In the third quarter of 1999, the Company recorded a $15,000 pretax
charge, comprised of an $8,589 Special Charge and a $6,411 Restructuring and
Other Nonrecurring Charge, (the two together are referred to herein as the
"Charges"). The Charges were incurred in accordance with a plan adopted in
July 1999 to consolidate two of the Company's wholly-owned subsidiaries and
to implement a national branding strategy.
<TABLE>
The first quarter 2000 utilization of the reserve established in
connection with the Charges was as follows:
Reserve Reserve
balance at Activity in balance at
12/25/99 Q1 2000 03/25/00
------- ------- -------
<S> <C> <C> <C>
Inventory $ 4,993 $ 583 $ 4,410
Molds 496 - 496
Elimination of duplicate assets 335 183 152
Employee costs 915 395 520
Other 400 8 392
------- ------- -------
$ 7,139 $ 1,169 $ 5,970
======= ======= =======
</TABLE>
The total activity charged against the accrual in the 13 weeks ended
March 25, 2000 was $1,169, and the non cash costs were $538.
<PAGE>
Note 6. The provision for income taxes is determined by applying an
estimated annual effective tax rate (federal, state and foreign combined) to
income before taxes. The estimated annual effective income tax rate is
based upon the most recent annualized forecast of pretax income and
permanent book/tax differences.
ITEM 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
This commentary should be read in conjunction with the Company's
consolidated financial statements and related footnotes and management's
discussion and analysis of financial condition and results of operations
contained in the Company's Form 10-K for the year ended December 25, 1999.
Thirteen weeks ended March 25, 2000 compared to the thirteen weeks ended
March 27, 1999.
In the discussion and analysis that follows, all references to the
first quarter of 2000 are to the thirteen week period ended March 25, 2000
and all references to the first quarter of 1999 are to the thirteen week
period ended March 27, 1999. The following discussion and analysis compares
the actual results for the first quarter of 2000 to the actual results for
the first quarter of 1999 with reference to the following (in thousands,
except per share amounts; unaudited):
<TABLE>
Thirteen weeks ended
-------------------------------------
March 25, 2000 March 27, 1999
----------------- ----------------
<S> <C> <C> <C> <C>
Net sales.................. $68,089 100.0% $67,799 100.0%
Cost of goods sold......... 48,797 71.7 45,177 66.6
------ ----- ------ -----
Gross profit............. 19,292 28.3 22,622 33.4
Operating expenses......... 15,671 23.0 15,930 23.5
------ ----- ------ -----
Operating profit......... 3,621 5.3 6,692 9.9
Interest expense........... (5,122) (7.5) (4,954) (7.2)
Other income (expense)..... (597) (0.9) 88 0.0
------ ----- ------ -----
Earnings before income taxes (2,098) (3.1) 1,826 2.7
Income tax benefit (expense) 881 1.3 (767) (1.1)
------ ----- ------ -----
Net earnings (loss)........ $(1,217) (1.8)% $ 1,059 1.6%
====== ===== ====== =====
Earnings (loss) per common
share - basic............. $ (0.17) $ 0.14
====== ======
Earnings (loss) per common
share - diluted......... $ (0.17) $ 0.13
====== ======
Weighted average common
shares outstanding - basic. 7,277 7,661
Weighted average common
shares outstanding - diluted 7,277 7,882
</TABLE>
<PAGE>
Net sales. Net sales of $68.1 million in the first quarter of 2000 were
slightly higher than the net sales of $67.8 million in the comparable period
a year ago. General storage products were up 21% ($3.4 million) to a year
ago as a result of the successful storewide HOMZ event by a major retailer.
Other categories were down to last year due to product lines discontinued in
the second half of 1999 as well as inventory reductions by a major retailer.
Sales to this major retailer were down $4.0 million to last year and were
across all categories. The kitchen and closet storage lines were most
impacted by this retailer's cutbacks, declining 21% and 12%, respectively.
Shipments from the Company's new El Paso factory and distribution center
were not significant during the quarter.
Gross profit. Gross profit in the first quarter of 2000 declined to $19.3
million from $22.6 million a year ago and gross profit margins declined 510
basis points. The drop in gross profit is entirely attributable to the
increased cost of plastic resin, the Company's primary raw material
component. Plastic resin costs have increased nearly 50% from the year ago
period, a trend that began in the second quarter of 1999. The cost
increases in plastic resin are attributable to increased demand for plastic
resin beyond the manufacturers' ability to supply. The imbalance in supply
and demand will likely continue for several months until the plastic resin
manufacturers bring more productive capacity on-line. The impact of the
increased plastic resin cost on gross profit was about $3.5 million. Gross
profit was also negatively impacted by the Company's new El Paso facility.
During the first quarter, the Company began to staff the facility and to
test the new production equipment. Costs related to the El Paso facility in
the first quarter were $0.6 million. On a positive note, margins improved
year to year (ignoring the plastic resin impact) as a result of the
favorable changes in product mix brought about by the third quarter 1999
restructuring. During the restructuring, over 1,600 stock keeping units
were eliminated, many of which had lower than acceptable profit margins.
Further, the elimination of so many items helped make the manufacturing
process more efficient.
Operating expenses. Operating expenses of $15.7 million in the first quarter
of 2000 were $0.2 million below the expense level of a year ago and also
declined as a percent of net sales to 23.0% from 23.5%. Administrative
expenses were down $0.8 million as a result of the Company's third quarter
1999 consolidation of all administrative functions. Offsetting some of the
savings were increased distribution and warehousing costs in the Company's
servingware business. The servingware distribution strategy is under review
and costs should be reduced in coming months.
Other, net. Other, net expense for the first quarter of 2000 was
primarily comprised of non recurring fees and expenses associated with the
exploration of strategic alternatives aimed at enhancing shareholder value.
The total expense of $0.6 million included fees related to investment
bankers, accountants, lawyers and travel expenses.
Interest expense. Interest expense of $5.1 million was up slightly from a
year ago. The increase is due to higher average debt levels during the
quarter. Debt averaged $226.0 million in the first quarter of 2000 as
compared to $220.7 million in 1999. Higher debt levels were a result of the
Company's 1999 common stock buyback program ($4.0 million) as well as the
cash funding of the 1999 third quarter restructuring and special charges
($4.0 million).
<PAGE>
Income taxes. As a result of the Company's first quarter pretax loss, a tax
benefit of $0.9 million has been recorded. The tax benefit will be realized
in the second and third quarters of 2000 when pretax profits are expected.
The Company's effective tax rate of 42% is slightly higher than the combined
federal and state statutory rate of 40% due to non-deductible goodwill
amortization.
Net earnings. The Company had a net loss of $1.2 million in the first
quarter of 2000, a loss of $0.17 per diluted common share based on 7.28
million weighted average common shares outstanding (stock options and
warrants are not considered dilutive for the thirteen week period ended
March 25, 2000 because of the loss in the period. Had there not been a loss
in the period, the weighted average common shares outstanding - diluted
would have increased by 374 to 7.65 million). This compares to net earnings
in the first quarter of 1999 of $1.1 million, or $0.13 per diluted common
share based on 7.89 million weighted average common shares outstanding. The
decrease in weighted average common shares outstanding was due to the
Company's common share buyback activity during 1999.
Capital Resources and Liquidity:
Net cash flow was slightly negative in the first quarter. Cash on hand
decreased $2.0 million while debt declined by only $1.8 million. Capital
spending for the quarter was $5.7 million primarily related to the build-out
of the new El Paso facility. Deposits on machines for the El Paso facility
have increased approximately $5.0 million in the quarter but this cash will
be recovered once operating leases are in place to fund the purchase of the
equipment. Such leases are currently being negotiated and are expected to
be put in place during the second quarter.
As compared to the beginning of the year, working capital decreased
from $33.0 million to $29.5 million as of the end of the first quarter of
2000. Working capital declined primarily due to decreases in accounts
receivable on seasonal sales declines.
The Company believes its financing facilities together with its cash
flow from operations will provide sufficient capital to fund operations,
make required debt and interest payments and meet anticipated capital
spending needs.
The Company was in compliance with all loan covenants as of March 25,
2000.
<PAGE>
Management Outlook and Commentary
* The HOMZ brand introduced during 1999 continues to receive good initial
acceptance. The Company will continue to look for sales opportunities
that leverage the brand's effective point of purchase appearance.
* The El Paso facility began shipping during the second quarter. With the
successful opening of the facility, the Company now has an additional
tool by which to gain sales distribution. The opening of the El Paso
facility will not only enhance the Company's sales growth. This facility
will have new, highly efficient manufacturing equipment which will result
in lower production costs as compared to the Company's other
manufacturing locations. In addition, El Paso is a very favorable labor
market that can provide needed manpower at a reasonable rate.
* Sales of laundry, bath and general storage products have historically
been more heavily concentrated in the second and third quarters. This
corresponds to the spring/summer wedding season, new home
buying/formation and the back-to-school season. This trend is expected
to continue in 2000.
* A major retailer has previously announced its intention to consolidate
its general storage vendor base from 35 vendors to less than 10.
Although the Company has been selected to participate in the smaller
vendor base, the retailer's progress to date on the consolidation effort
has gone slower than expected. The Company has not yet realized
additional sales as a result of the vendor consolidation and cannot
predict when such incremental sales may arise.
* The Company's primary raw materials are plastic resin, steel, fabric and
corrugated packaging. Fluctuations in the cost of these materials can
have a significant impact on reported results. Other than plastic resin
(see discussion below), management does not expect to see a significant
change in the cost of these materials as compared to 1999. However the
cost of these items is affected by many variables outside the control of
the company and changes to the current perceived trends are possible.
* Plastic resin represents about 20-25% of the Company's cost of goods
sold. During 1999 and so far in 2000, the cost of plastic resin
increased significantly. This occurred after a several year period of
declining plastic resin costs during which selling prices also declined
in response to competitive pressures. Now that plastic resin costs have
increased, the Company's ability to pass along this increase to its
customers is hampered by both the nature of the retail customer
environment and other competitive factors. However, the Company will
closely monitor the marketplace and will initiate a price increase
consistent with any other competitor's actions. The future cost of
plastic resin is difficult to predict. Plastic resin costs are impacted
by several factors outside the control of the Company including supply
and demand characteristics, oil prices and the overall health of the
economy. Any of these factors could have a positive or negative impact
on plastic resin costs.
* The Company has concluded its exploration of strategic alternatives which
began in the fourth quarter of 1999 when the Company retained the services
of First Union Securities. After considering numerous alternatives,
Management has determined that shareholder value may be better served by
continuing to reinvest corporate energies and resources into the Company.
* The Company will continue to explore acquisition opportunities that will
be accretive to earnings. Management anticipates that the fragmented
nature of the housewares industry will continue to provide significant
opportunities for growth through strategic acquisitions of complementary
businesses. Management intends to acquire businesses at attractive
multiples of cash flow and achieve operational and distribution
efficiencies through integration of common functions.
<PAGE>
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk
Interest Rate Risk. For the 13 week period ended March 25, 2000, the
Company did not experience any material changes in interest rate risk that
would affect the disclosures presented in the Company's Annual Report on
Form 10-K for the 52 week period ended December 25, 1999.
Commodity Risk. The Company is subject to fluctuations in commodity
based raw materials such as plastic resin, steel and griege fabric. There
have been no significant changes in the costs of steel and griege fabric in
the 13 week period ended March 25, 2000. As previously mentioned, the cost
of plastic resin continued to increase in the 13 week period ended March 25,
2000. This trend is expected to continue for a few months until supply
levels increase to meet the demand.
As compared to a year ago, the Company's resin costs, on average,
increased approximately 50%. This increase negatively impacted gross margin
by $3.5 million in the first quarter of 2000. The Company anticipates that
it will consume in excess of 150 million pounds of resin in fiscal 2000.
Forward Looking Statements
This quarterly report on Form 10-Q, including "Management's Discussion
and Analysis of Financial Condition and Results of Operations", "Management
Outlook and Commentary" and "Quantitative and Qualitative Disclosures about
Market Risk" sections contain forward-looking statements within the meaning
of the "safe-harbor" provisions of the Private Securities Litigation Reform
Act of 1995. Such statements are based on management's current expectations
and are subject to a number of factors and uncertainties which could cause
actual results to differ materially from those described in the forward-
looking statements. Such factors and uncertainties include, but are not
limited to: (i) the impact of the level of the Company's indebtedness; (ii)
restrictive covenants contained in the Company's various debt documents;
(iii) general economic conditions and conditions in the retail environment;
(iv) the Company's dependence on a few large customers; (v) price
fluctuations in the raw materials used by the Company (vi) competitive
conditions in the Company's markets; (vii) the seasonal nature of the
Company's business; (viii) the Company's ability to execute its acquisition
strategy; (ix) fluctuations in the stock market; (x) the extent to which the
Company is able to retain and attract key personnel; (xi) relationships with
retailers; and (xii) the impact of federal, state and local environmental
requirements (including the impact of current or future environmental claims
against the Company). As a result, the Company's operating results may
fluctuate, especially when measured on a quarterly basis. The Company
undertakes no obligation to republish revised forward-looking statements to
reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events. Readers are also urged to carefully
review and consider the various disclosures made by the Company which
attempt to advise interested parties of the factors which affect the
Company's business, in this report, as well as the Company's periodic
reports on Forms 10-K, 10-Q and 8-K filed with the Securities and Exchange
Commission.
<PAGE>
PART II Other Information
Item 6. Exhibits and Reports on Form 8-K
a) Exhibit 27 - Financial Data Schedule (only filed electronically with
the SEC.)
b) Reports of Form 8-k. The Company did not issue any Reports on Form
8-k within the 13 weeks ended March 25, 2000.
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 hereunto duly authorized.
Home Products International, Inc.
By: /s/ James E. Winslow
----------------------------------
James E. Winslow
Executive Vice President and
Chief Financial Officer
Dated: May 9, 2000
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-23-2000
<PERIOD-START> DEC-26-1999
<PERIOD-END> MAR-25-2000
<CASH> 2,853
<SECURITIES> 0
<RECEIVABLES> 63,323
<ALLOWANCES> 10,266
<INVENTORY> 25,728
<CURRENT-ASSETS> 94,331
<PP&E> 104,395
<DEPRECIATION> 34,723
<TOTAL-ASSETS> 342,836
<CURRENT-LIABILITIES> 64,830
<BONDS> 225,120
0
0
<COMMON> 81
<OTHER-SE> 55,423
<TOTAL-LIABILITY-AND-EQUITY> 342,836
<SALES> 68,089
<TOTAL-REVENUES> 68,089
<CGS> 48,797
<TOTAL-COSTS> 48,797
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 5,137
<INCOME-PRETAX> (2,098)
<INCOME-TAX> (881)
<INCOME-CONTINUING> (1,217)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,217)
<EPS-BASIC> (0.17)
<EPS-DILUTED> (0.17)
</TABLE>
