SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------------------------------
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended: March 30, 1996 Commission File Number: 0-18671
NUTRAMAX PRODUCTS, INC.
(Exact name of registrant as specified in its charter)
Delaware 061200464
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
9 Blackburn Drive, Gloucester, Massachusetts 01930
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (508) 283-1800
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____
As of May 9, 1996 there were 8,521,452 shares of Common Stock, par value $.001
per share, outstanding.
<PAGE>
NUTRAMAX PRODUCTS, INC. AND SUBSIDIARIES
Thirteen Weeks Ended March 30, 1996
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements.
Condensed Consolidated Statements of Operations -
Thirteen Weeks and Twenty-Six Weeks ended March 30, 1996
and April 1, 1995 (Unaudited) 4
Condensed Consolidated Balance Sheets -
March 30, 1996 (Unaudited) and September 30, 1995 5
Condensed Consolidated Statements of Cash Flows -
Twenty-Six Weeks ended March 30, 1996 and April 1, 1995 6
Notes to Condensed Consolidated Financial Statements (Unaudited) 7-8
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations. 9-12
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 12
2
<PAGE>
NUTRAMAX PRODUCTS, INC. AND SUBSIDIARIES
Thirteen Weeks Ended March 30, 1996
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
3
<PAGE>
NUTRAMAX PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Thirteen Weeks Ended Twenty-Six Weeks Ended
March 30, April 1, March 30, April 1,
1996 1995 1996 1995
----------- ------------- ----------- -----------
<S> <C> <C> <C> <C>
NET SALES $ 19,824,000 $ 15,055,000 $ 37,972,000 $ 30,178,000
COST OF SALES 14,279,000 10,776,000 26,849,000 21,297,000
------------ ------------ ------------ ------------
GROSS PROFIT 5,545,000 4,279,000 11,123,000 8,881,000
SELLING, GENERAL & ADMINISTRATIVE EXPENSES 2,888,000 2,192,000 5,695,000 4,396,000
------------ ------------ ------------ ------------
OPERATING INCOME 2,657,000 2,087,000 5,428,000 4,485,000
OTHER CREDITS (CHARGES):
Interest expense (361,000) (382,000) (691,000) (741,000)
Other (76,000) 110,000 (300,000) 228,000
------------ ------------ ------------ ------------
INCOME BEFORE INCOME TAX EXPENSE 2,220,000 1,815,000 4,437,000 3,972,000
INCOME TAX EXPENSE 858,000 704,000 1,745,000 1,623,000
------------ ------------ ------------ ------------
NET INCOME $ 1,362,000 $ 1,111,000 $ 2,692,000 $ 2,349,000
============ ============ ============ ============
EARNINGS PER SHARE $ .16 $ .13 $ .32 $ .28
============ ============ ============ ============
WEIGHTED AVERAGE SHARES OUTSTANDING 8,520,000 8,520,000 8,520,000 8,520,000
============ ============ ============ ============
</TABLE>
See notes to condensed consolidated financial statements.
4
<PAGE>
NUTRAMAX PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
March 30, September 30,
1996 1995
----------- -------------
(Unaudited) (See Note)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash $ -- $ 503,000
Accounts receivable, net 9,816,000 9,050,000
Inventories 16,679,000 12,497,000
Deferred income taxes 907,000 977,000
Prepaid expenses and other 424,000 525,000
----------- -----------
TOTAL CURRENT ASSETS 27,826,000 23,552,000
PROPERTY, PLANT AND EQUIPMENT, net 26,914,000 23,714,000
GOODWILL, net 13,696,000 13,978,000
OTHER ASSETS 2,048,000 1,830,000
----------- -----------
$70,484,000 $63,074,000
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 4,839,000 $ 6,191,000
Accrued payroll and related taxes 543,000 366,000
Accrued expenses - other 361,000 939,000
Current maturities of long-term debt 12,544,000 1,904,000
----------- -----------
TOTAL CURRENT LIABILITIES 18,287,000 9,400,000
LONG-TERM DEBT, less current maturities 8,185,000 12,550,000
DEFERRED INCOME TAXES AND OTHER LIABILITIES 2,087,000 1,891,000
STOCKHOLDERS' EQUITY 41,925,000 39,233,000
----------- -----------
$70,484,000 $63,074,000
=========== ===========
</TABLE>
Note: The balance sheet at September 30, 1995 has been condensed from the
audited financial statements at that date.
See notes to condensed consolidated financial statements.
5
<PAGE>
NUTRAMAX PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Twenty-Six Weeks Ended
March 30, April 1,
1996 1995
----------- --------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 2,692,000 $ 2,349,000
Adjustments to reconcile net income to net cash
provided by operating activities:
Non cash items primarily depreciation and amortization 2,198,000 1,833,000
Increase (decrease), net of effect from acquisition:
Accounts receivable 425,000 635,000
Inventories (2,688,000) (1,588,000)
Prepaid expenses and other 101,000 251,000
Accounts payable (1,069,000) (1,047,000)
Accrued payroll and related taxes 45,000 (117,000)
Accrued expenses - other (298,000) (132,000)
Federal and state taxes payable (385,000) (208,000)
---------- ----------
Net cash provided by operating activities 1,021,000 1,976,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition-Oral Care, net of cash acquired (2,538,000) --
Acquisition-feminine hygiene assets (2,367,000) --
Purchases of property and equipment (2,490,000) (2,199,000)
Deferred packaging costs (395,000) (94,000)
----------- ------------
Net cash used in investing activities (7,790,000) (2,293,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings 7,220,000 930,000
Debt repayments (954,000) (490,000)
------------ ------------
Net cash provided by financing activities 6,266,000 440,000
------------ -----------
NET INCREASE (DECREASE) IN CASH (503,000) 123,000
CASH:
Beginning of period 503,000 376,000
------------ -----------
End of period $ -- $ 499,000
============ ===========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Income taxes paid $ 1,932,000 $ 1,786,000
============ ===========
Interest paid $ 583,000 $ 526,000
============ ===========
</TABLE>
See notes to condensed consolidated financial statements.
6
<PAGE>
NUTRAMAX PRODUCTS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note A - Condensed Consolidated Financial Statements
The condensed consolidated balance sheet as of March 30, 1996, the condensed
consolidated statements of operations for the thirteen and twenty-six weeks
ended March 30, 1996 and April 1, 1995, and the condensed consolidated
statements of cash flows for the twenty-six weeks then ended have been prepared
by the Company without audit. In the opinion of the Company, all adjustments
(consisting only of normal, recurring adjustments) necessary to present fairly
the financial position, results of operations and cash flows at March 30, 1996,
and for all periods presented, have been made.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted. These condensed financial statements should be
read in conjunction with the financial statements and notes thereto included in
the Company's September 30, 1995 Annual Report on Form 10-K. The results of
operations for the period ended March 30, 1996 are not necessarily indicative of
the operating results for the full year.
Note B - Acquisitions
Effective October 23, 1995, the Company acquired substantially all of the assets
and assumed certain liabilities of Mi-Lor Corporation, Professional Brushes,
Inc. and Codent Dental Products, Inc. ("Oral Care") which manufacture and market
toothbrushes, dental floss and related products for store brand markets. The
purchase price consisted of $1,800,000 in cash and liabilities assumed of
$363,000, and the transaction resulted in related expenses of approximately
$375,000.
On February 29, 1996, the Company purchased certain of the assets, including
machinery and inventory, of the Hospital Specialties Division of the
Tranzonic Companies related to the manufacture and sale of feminine hygiene
products. The purchase price consisted of $2,367,000 in cash which was
financed with long term debt (see Note D). The transaction has been accounted
for by the purchase method of accounting.
Note C - Inventories
Inventories are stated at the lower of cost (first-in, first-out method) or
market.
March 30, September 30,
1996 1995
----------- -------------
Raw materials $ 7,360,000 $ 5,278,000
Finished goods 7,873,000 6,088,000
Work-in-process 678,000 417,000
Machine parts and factory supplies 768,000 714,000
----------- -----------
$16,679,000 $12,497,000
=========== ===========
The inventory associated with the Oral Care and feminine hygiene acquisitions
resulted in an increase in inventory of $2,696,000 as compared to September 30,
1995.
7
<PAGE>
Note D - Long-Term Debt
On December 30, 1995, the Company's revolving credit facility was increased
$1,000,000 to $9,000,000. On February 29, 1996, the revolving credit
facility was increased an additional $1,000,000 to $10,000,000. The revolving
credit facility was temporarily increased an additional $1,000,000 to
$11,000,000 on March 27, 1996 in anticipation of an IDB (Note F) refinancing to
take place. The temporary $1,000,000 line extension ended April 29, 1996. In
addition, on February 29, 1996 the Company obtained a $2,750,000 term loan,
with the same commercial lender, for the feminine hygiene acquisition (see Note
B), payable February 29, 1997 at interest rates comparable to the Company's
existing line of credit, which as of November 30, 1995 was reduced to LIBOR plus
1.5%. The term loan interest rate was also reduced at the same time to LIBOR
plus 2.25%.
Long term debt decreased $4,365,000 as a result of the transfer of the revolving
credit facility and a mortgage to short term debt, offset by the additional
lines recently obtained. The revolving credit facility expires in December 1996.
The mortgage requires a final payment of approximately $670,000 on February
28, 1997. As of March 30, 1996, $9,980,000 was outstanding under the Company's
revolving credit facility and $1,000,000 was available based on management
estimates of eligible accounts receivable and inventory.
Note E - Special Committee
The Board of Directors of MEDIQ Incorporated ("MEDIQ"), a 47% owner of the
Company, has undertaken a process of exploring alternative ways to maximize
MEDIQ's shareholder value, which could include the disposition of its holdings
in the Company. In fiscal 1995, the Company formed a Special Committee of its
Board of Directors to explore strategic alternatives for the Company. The
Special Committee retained Wasserstein Parella & Co. as financial advisors to
seek opportunities for the Company to enhance shareholder value. The financial
statements contain a charge of $23,000 and $184,000, before taxes, related to
the activities of the Special Committee for the quarter and six month period
respectively.
Note F - Subsequent Event
On May 3, 1996, the Company completed a $4,200,000 Massachusetts Industrial
Finance Agency Variable Rate Industrial Development Revenue Bond financing
("IDB") for the purpose of partially funding the Oral Care acquisition and for
capital expenditures made and scheduled to be made over the next twelve months
for the Oral Care operation. As of May 3, 1996 $1,670,000 of the proceeds
of the bond were used to partially repay a portion of the Company's existing
credit facility. The variable interest rate on the bond at the time of closing
was 3.9% and is payable monthly. Principal payments are funded monthly and are
payable annually beginning May 1, 1997 at $400,000 per year, through May 1,
2003, $200,000 due May 1, 2004 and $100,000 per year thereafter through May 1,
2016. Proceeds received from the bond have been or will be used for new asset
purchases at the Oral Care manufacturing operation. It is anticipated that all
proceeds will be expended by December 31, 1996. The IDB is supported by a letter
of credit with State Street Bank and Trust Company and contains certain
financial covenants with respect to minimum quarterly net earnings,
tangible net worth, indebtedness to net worth ratios and cash flows. The IDB
contains certain restrictions including limiting capital expenditures, made for
the Oral Care operation, to $10,000,000 over the next three years.
8
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
General
The following discussion addresses the financial condition of the
Company as of March 30, 1996 and its results of operations for the thirteen and
twenty-six week periods then ended, compared with the same periods last year.
This discussion should be read in conjunction with the Management's Discussion
and Analysis section included in the Company's Annual Report on Form 10-K for
the year ended September 30, 1995 (pages 8-10) to which the reader is directed
for additional information.
Some of the information presented in this report constitutes forward
looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Although the Company believes that its expectations are
based on reasonable assumptions within the bounds of its knowledge of its
business and operation, there can be no assurance that actual results will not
differ materially from its expectations. Factors which could cause actual
results to differ from expectations include the timing and amount of new product
introductions by the Company, the timing of orders received from customers, the
gain or loss of significant customers, changes in the mix of products sold,
competition from brand name and other private label manufacturers, seasonal
changes in the demand for the Company's products, increases in the cost of
raw materials and changes in the retail market for health and beauty aids in
general. For additional information concerning these and other important factors
which may cause the Company's actual results to differ materially from
expectations and underlying assumptions, please refer to the Company's Annual
Report on Form 10-K for the year ended September 30, 1995 and other reports
filed with the Securities and Exchange Commission.
Results of Operations
On October 23, 1995, the Company acquired substantially all of the
assets and assumed certain liabilities of Mi-Lor Corporation, Professional
Brushes, Inc. and Codent Dental Products, Inc. ("Oral Care") which manufacture
and market toothbrushes, dental floss and related products for the store brand
market. The purchase price consisted of $1,800,000 in cash and liabilities
assumed of $363,000, and the transaction resulted in related expenses of
$375,000. This acquisition represents the addition of the Company's Oral Care
product line.
On February 29, 1996, the Company purchased certain of the assets,
including machinery and inventory, of the Hospital Specialties division of
the Tranzonic Companies related to the manufacture and sale of feminine hygiene
products. The purchase price consisted of $2,367,000 in cash which was financed
with long term debt (see Note D).
9
<PAGE>
The following table sets forth, for all periods indicated, the
percentage relationship that items in the Company's Condensed Consolidated
Statements of Operations bear to net sales.
<TABLE>
<CAPTION>
Thirteen Weeks Ended Twenty-Six Weeks Ended
-------------------- ----------------------
March 30, April 1, March 30, April 1,
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
NET SALES 100% 100% 100% 100%
COST OF SALES 72 72 71 71
---- ---- ---- ----
GROSS PROFIT 28 28 29 29
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 15 14 15 14
---- ---- ---- ----
OPERATING INCOME 13 14 14 15
OTHER CREDITS (CHARGES) (2) (2) (2) (2)
---- ---- ---- ----
INCOME BEFORE INCOME TAX EXPENSE 11 12 12 13
INCOME TAX EXPENSE 4 5 5 5
---- ---- ---- ----
NET INCOME 7% 7% 7% 8%
==== ==== ==== ====
</TABLE>
Thirteen Weeks Ended March 30, 1996 Compared with Thirteen Weeks Ended
April 1, 1995
Net sales in 1996 increased $4,769,000 to $19,824,000, as compared to
$15,055,000 for the prior year quarter. The increase in net sales was primarily
attributable to $1,937,000 of sales of Oral Care products, $668,000 of
sales of Adult Liquid Nutrition products (introduced in March 1995), Cough/Cold
products which showed strength in both contract and private label sales
accounted for $1,343,000, and Feminine Hygiene sales increased $674,000
which resulted from continued increases in market penetration.
Gross profit for 1996 was $5,545,000 which was 28% of net sales, as
compared to $4,279,000 for the prior year quarter, and as a percentage of net
sales was comparable to the prior year quarter.
Selling, general and administrative expenses for 1996 were $2,888,000,
or 15% of net sales, as compared to $2,192,000, or 14% of net sales for the
prior year quarter. The increase of $696,000 is primarily attributable to
freight and commission expense related to increased sales. The percentage
increase is related to product mix relative to freight costs for the quarter.
Interest expense for 1996 was $361,000, as compared to $382,000 in the
prior year quarter. This decrease was primarily attributable to lower interest
rates.
Other charges for the quarter were $76,000, primarily consisting of
research and development costs. The prior year quarter was comprised primarily
of gains on the sale of equipment.
The effective income tax rate for the quarter was 39% which was
comparable to the prior year quarter.
Twenty-Six Weeks Ended March 30, 1996 Compared with Twenty-Six Weeks Ended
April 1, 1995
Net sales for 1996 were $37,972,000, an increase of $7,794,000, or 26%,
over sales of $30,178,000 in the prior year period. Of the increase, $3,460,000
was attributable to sales of Oral
10
<PAGE>
Care, Adult Liquid Nutrition increased $1,728,000, Cough/Cold sales increased
$1,872,000 and Feminine Hygiene products accounted for the majority of the
remaining increase.
Gross profit for 1996 was $11,123,000 or 29% of net sales, as compared
to $8,881,000 for the prior year period, and as a percentage of net sales was
comparable to the prior year period.
Selling, general and administrative expenses for 1996 were $5,695,000
or 15% of net sales, as compared to $4,396,000, or 14% of net sales in the prior
year period. The increase of $1,299,000 was primarily attributable to increased
freight and commission expense related to the increased sales. The percentage
increase was primarily attributable to product mix related to freight costs.
.
Interest expense for 1996 was $691,000, as compared to $741,000 in the
prior year period. This decrease was primarily attributable to lower interest
rates.
Other charges for 1996 were $300,000 primarily consisting of costs
associated with the Special Committee of the Board of Directors and Wasserstein,
Parella & Co., its financial advisors, as well as research and development
costs.
The effective income tax rate for the first twenty six weeks of fiscal
1996 was 39%, as compared to 41% in the prior year period. The decrease relates
to the implementation of tax planning strategies undertaken in 1995 to maximize
state tax benefits.
Liquidity and Capital Resources
As of March 30, 1996 the Company had working capital of $9,452,000 as
compared to working capital of $14,152,000 as of September 30, 1995. The
decrease in working capital was primarily attributable to the reclassification
of long-term debt to current debt offset by increased inventories and accounts
receivable.
Net cash provided by operating activities was $1,021,000 for the
twenty-six weeks ended March 30, 1996, as compared to $1,976,000 in the prior
year period. This decrease was primarily attributable to increased inventory
levels to support anticipated sales growth of Oral Care and Adult Liquid
Nutrition product categories.
Net cash used in investing activities was $7,790,000 for 1996,
consisting primarily of the Oral Care and feminine hygiene asset acquisitions
and capital expenditures of $2,490,000. The assets associated with the Oral
Care and feminine hygiene acquisitions resulted in an increase in net property,
plant and equipment of $3,214,000 and in inventories of $2,696,000 as
compared to September 30, 1995. The Company anticipates additional capital
expenditures of approximately $3,500,000 for the remainder of fiscal 1996,
$2,200,000 of which will be financed from the proceeds of the IDB (defined
below). The remaining expenditures relate primarily to additional capacity and
are expected to be financed through cash generated from operations.
Net cash provided by financing activities was $6,266,000 for 1996,
which consisted of borrowings under the line of credit facility of $7,220,000
primarily for the Oral Care and feminine hygiene asset acquisitions as well as
equipment purchases, offset by debt repayments of $954,000.
11
<PAGE>
On December 30, 1995, the Company's revolving credit facility was
increased $1,000,000 to $9,000,000. On February 29, 1996, the revolving credit
facility was increased an additional $1,000,000 to $10,000,000. The revolving
credit facility was temporarily increased an additional $1,000,000 to
$11,000,000 on March 27, 1996 in anticipation of the IDB refinancing to take
place. The temporary $1,000,000 line extension ended April 29, 1996. In
addition, on February 29, 1996 the Company obtained a $2,750,000 term loan, with
the same commercial lender, for the feminine hygiene acquisition (see Note B),
payable February 29, 1997 at interest rates comparable to the Company's existing
line of credit, which as of November 30, 1995 was reduced to LIBOR plus 1.5%.
The term loan interest rate was also reduced at the same time to LIBOR plus
2.25%.
On May 3, 1996, the Company completed a $4,200,000 Massachusetts
Industrial Finance Agency Variable Rate Industrial Development Revenue Bond
financing ("IDB") for the purpose of partially funding the Oral Care acquisition
and for capital expenditures made and scheduled to be made over the next twelve
months for the Oral Care operation. As of May 3, 1996 $1,670,000 of the
proceeds of the bond were used to partially repay a portion of the Company's
existing credit facility. The variable interest rate on the bond at the time of
closing was 3.9% and is payable monthly. Principal payments are funded monthly
and are payable annually beginning May 1, 1997 at $400,000 per year, through May
1, 2003, $200,000 due May 1, 2004 and $100,000 per year thereafter through May
1, 2016. Proceeds received from the bond have been or will be used for new asset
purchases for the Oral Care manufacturing operation. It is anticipated that all
proceeds will be expended by December 31, 1996. The IDB is supported by a letter
of credit with State Street Bank and Trust Company and contains certain
financial covenants with respect to minimum quarterly net earnings, tangible net
worth, indebtedness to net worth ratios and cash flows. The IDB contains certain
restrictions including limiting capital expenditures, made for the Oral Care
operation, to $10,000,000 over the next three years.
The Company believes that its existing working capital and anticipated
funds to be generated from operations will be sufficient to meet the Company's
operating and capital needs. Depending upon future growth of the business,
additional financing may be required. In addition, it is anticipated that the
balance of the Company's revolving credit facility due December 1996 will be
refinanced at maturity.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
Exhibit 27 - Financial Data Schedule appears on page 14.
(b) Reports on Form 8-K.
No reports on Form 8-K were filed in the quarter ended March
30, 1996.
12
<PAGE>
NUTRAMAX PRODUCTS, INC. AND SUBSIDIARIES
Thirteen Weeks Ended March 30, 1996
SIGNATURE
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.
NutraMax Products, Inc.
----------------------------
(Registrant)
May 9, 1996
- -----------------
(Date) /s/ Robert F. Burns
------------------------------
Robert F. Burns
Vice President and
Chief Financial Officer
13
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-28-1996
<PERIOD-END> MAR-30-1996
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 10,511
<ALLOWANCES> 695
<INVENTORY> 16,679
<CURRENT-ASSETS> 27,826
<PP&E> 38,183
<DEPRECIATION> 11,269
<TOTAL-ASSETS> 70,484
<CURRENT-LIABILITIES> 18,287
<BONDS> 8,185
0
0
<COMMON> 9
<OTHER-SE> 41,916
<TOTAL-LIABILITY-AND-EQUITY> 70,484
<SALES> 37,972
<TOTAL-REVENUES> 37,972
<CGS> 26,849
<TOTAL-COSTS> 26,849
<OTHER-EXPENSES> 5,695
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 691
<INCOME-PRETAX> 4,437
<INCOME-TAX> 1,745
<INCOME-CONTINUING> 2,692
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,692
<EPS-PRIMARY> .32
<EPS-DILUTED> .32
</TABLE>
