UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 1997
or
[ ] 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 1-10651
MAVERICK TUBE CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 43-1455766
(State or other jurisdiction of (I.RS. Employer
incorporation or organization) Identification No.)
400 Chesterfield Center
Second Floor
Chesterfield, Missouri 63017
(Address of principal executive offices) (Zip Code)
(314) 537-1314
(Registrant's telephone number, including area code)
Not applicable
(Former name, former address and former fiscal year, if changed since last
report)
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 XX No
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common Stock, $.01 Par Value -- 15,437,474 shares as of January 30, 1998
MAVERICK TUBE CORPORATION AND SUBSIDIARIES
INDEX
PART I. FINANCIAL INFORMATION PAGE NO.
Item 1. Financial statements (Unaudited)
Condensed Consolidated Balance Sheets -- December 31, 1997
and September 30, 1997 3
Condensed Consolidated Statements of Income -- Three
months ended December 31, 1997 and 1996 4
Condensed Consolidated Statements of Cash Flows -- Three
months ended December 31, 1997 and 1996 5
Notes to Condensed Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 7
PART II. OTHER INFORMATION
Item 5. Other Information 12
Item 6. Exhibits and Reports on Form 8-K 12
SIGNATURES 13
<TABLE>
<CAPTION>
MAVERICK TUBE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, September 30,
1997 1997
(Unaudited) (Note)
------------------- --------------------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $434 $2,886
Accounts receivable, less allowances of $355 and
$388 on December 31 and September 30, 1997,
respectively 24,711 27,714
Inventories (see Note 2) 68,510 69,436
Deferred income taxes 5,104 5,104
Prepaid expenses and other current assets 1,010 798
------------------- --------------------
Total current assets 99,769 105,938
PROPERTY, PLANT, AND EQUIPMENT
Less accumulated depreciation (December 31, 1997 -
$28,608; September 30, 1997 - $27,200) 56,991 55,506
OTHER ASSETS 628 620
------------------- --------------------
TOTAL ASSETS $157,388 $162,064
=================== ====================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $28,199 $31,477
Accrued expenses and other liabilities 9,379 12,614
Deferred revenue 9,480 16,251
Current maturities of long-term debt 615 604
------------------- --------------------
Total current liabilties 47,673 60,946
LONG TERM DEBT, less current maturities 8,695 8,879
REVOLVING CREDIT FACILITY 12,050 10,000
DEFERRED INCOME TAXES 4,371 4,371
STOCKHOLDERS' EQUITY
Common stock, $.01 par value;
20,000,000 authorized shares
15437,474 and 15,410,974 issued shares, respectively 154 154
Additional paid-in capital 43,568 43,406
Retained earnings 40,877 34,308
------------------- --------------------
Total stockholders'equity 84,599 77,868
------------------- --------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $157,388 $162,064
=================== ====================
<FN>
...............................................................................................................................
Note: The condensed consolidated balance sheet at September 30, 1997, has been
derived from the audited consolidated financial statements at that date.
...............................................................................................................................
See accompanying notes to condensed consolidated financial statements.
</FN>
</TABLE>
<TABLE>
<CAPTION>
MAVERICK TUBE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share data)
(Unaudited)
Three months ended
December 31
-----------------------------------------
1997 1996
<S> <C> <C>
NET SALES $86,479 $64,190
COSTS and EXPENSES
Cost of goods sold 72,705 57,527
Selling, general and administrative 3,196 2,698
-----------------------------------------
Income from operations 10,578 3,965
OTHER INCOME (EXPENSE)
Interest expense (442) (518)
Other income 50 30
--------------------- --------------------
Income before income taxes 10,186 3,477
PROVISION FOR INCOME TAXES 3,616 869
--------------------- --------------------
NET INCOME $6,570 $2,608
===================== ====================
AVERAGE SHARES OUTSTANDING 15,435,302 14,944,142
BASIC EARNINGS PER SHARE $0.43 $0.18
==================== ====================
DILUTED EARNINGS PER SHARE $0.42 $0.18
==================== ====================
<FN>
See accompanying notes to condensed consolidated financial statements.
</FN>
</TABLE>
<TABLE>
<CAPTION>
MAVERICK TUBE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
Three Months Ended
December 31,
1997 1996
------------------------------
OPERATING ACTIVITIES
<S> <C> <C>
Net income $6,570 $2,608
Adjustments to reconcile net income to net cash used by operating activities:
Depreciation and amortization 1,408 1,356
Provision for accounts receivable allowances (33) 16
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable 3,036 (2,843)
(Increase) decrease in inventories 926 (5,861)
(Increase) decrease in prepaid expenses and other assets (220) 2
(Decrease) in accounts payable (3,278) (3,270)
(Decrease) increase in deferred revenue (6,771) 2,345
(Decrease) increase in accrued liabilities and other expenses (3,235) 3,409
-------------- --------------
Cash used by operating activities (1,597) (2,238)
INVESTING ACTIVITIES
Purchases of property, plant and equipment (2,893) (2,909)
FINANCING ACTIVITIES
Proceeds from borrowings 34,000 29,550
Principal payments on borrowings (32,123) (24,320)
-------------- --------------
1,877 5,230
Net proceeds from sale of common stock 161 --
-------------- --------------
Cash provided by financing activities 2,038 5,230
Increase (decrease) in cash and cash equivalents (2,452) 83
Cash and cash equivalents at beginning of period 2,886 612
-------------- --------------
Cash and cash equivalents at end of period $434 $695
============== ==============
Supplemental disclosures of cash flow information: Cash paid during the period
for:
Interest $471 $569
Income taxes $465 $97
<FN>
See accompanying notes to condensed consolidated financial statements.
</FN>
</TABLE>
MAVERICK TUBE CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
(1) BASIS OF PRESENTATION
The condensed consolidated financial statements include the accounts of
Maverick Tube Corporation (the "Company") and its wholly-owned
subsidiaries. All significant intercompany balances and transactions
have been eliminated.
The accompanying unaudited condensed 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 items) considered necessary for a fair presentation have been
included. Operating results for the three month period ended December
31, 1997, are not necessarily indicative of the results that may be
expected for the year ended September 30, 1998. 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 September 30, 1997.
(2) INVENTORIES
The components of inventories consisted of the following:
December 31, September 30,
1997 1997
(In thousands)
Finished goods $43,170 $41,188
Work-in-process 2,323 3,589
Raw materials 12,675 14,065
In-transit materials 6,470 6,911
Storeroom parts 3,872 3,683
---------------------------------------
$68,510 $69,436
=====================================
Inventories are principally valued at the lower of average cost or
market.
(3) STOCK SPLIT
On August 1, 1997, the Company announced the declaration of a
two-for-one stock split in the form of a 100% stock dividend to all
shareholders of record as of the close of business on August 12, 1997
distributed on August 21, 1997. The outstanding shares, average shares
outstanding and per share data for all periods have been adjusted
to reflect the payment of this dividend.
(4) EARNINGS PER SHARE
In 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 128, Earnings per Share. Statement
128 replaced the previously reported primary and fully diluted earnings
per share with basic and diluted earnings per share. Unlike primary
earnings per share, basic earnings per share excludes any dilutive
effects of options, warrants, and convertible securities. Diluted
earnings per share is very similar to the previously reported fully
diluted earnings per share. All earnings per share amounts for all
periods have been presented, and where necessary, restated to conform
to the Statement 128 requirements.
MAVERICK TUBE CORPORATION AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
Certain statements contained in the "Management's Discussion and Analysis of
Financial Condition and Results of Operations" regarding matters that are not
historical facts (including statements as to the beliefs or expectations of the
Company) are forward-looking statements. Because such forward-looking statements
include risks and uncertainties, actual results may differ materially from those
expressed or implied by such forward-looking statements. For example,
uncertainty continues to exist as to future levels and volatility of oil and gas
price expectations and their effect on drilling levels and demand for the
Company's energy-related products, the future impact of industry-wide draw-downs
of inventories and future import levels. Uncertainty also exists as to the trend
and direction of both product pricing and purchased steel costs. Reference is
made to the "Risk Factors" discussed in Exhibit 99.1 of Maverick's Form 10-K for
its fiscal year ended September 30, 1997.
OVERVIEW
The Company's products consist of electrical resistance welded ("ERW") tubular
products sold primarily into energy and industrial applications in North
America. The Company's energy segment includes Oil Country Tubular Goods (OCTG)
and line pipe which are sold primarily to distributors who supply end users in
the energy industry. The Company's industrial products segment consists of
structural tubing and standard pipe which are sold primarily to distributors who
supply end users in construction, transportation, agriculture and other
industries. Demand for the Company's energy related products depends primarily
upon the number of oil and natural gas wells being drilled in the United States
and Canada, the depth and drilling conditions of these wells and the number of
well completions, which are in turn primarily dependent on oil and natural gas
prices. Domestic consumption of OCTG is supplied by domestic and foreign pipe
products. Given the numerous applications for the Company's industrial products,
sources of demand for such products are diversified. Such demand generally
depends on the general level of economic activity in the construction,
transportation, agricultural, material handling and recreational segments, the
use of structural tubing as a substitute for other structural steel forms, such
as I-beams and H-beams, and draw downs of existing customer inventories.
According to published industry reports, domestic drilling activity rose by 18%
for the quarter ended December 31, 1997, as compared to the same quarter of the
previous year. The Company believes that the domestic consumption of tubular
goods per well drilled has increased proportionately. Natural gas drilling in
the United States increased by 28% during the first quarter of fiscal 1998 as
compared to the comparable period of fiscal 1997, and oil related drilling
increased by 4%. The Company believes that gas and oil drilling increased in
spite of gas and oil price decreases of 3% and 18%, respectively, as compared to
the quarter ended December 31, 1997, due principally to lower finding and
producing costs by end users. Notwithstanding declining oil prices during the
first quarter of fiscal 1988, the trend in overall drilling continued upward, as
drilling at the end of the quarter was 19% higher than the comparable period of
the prior year and 1.4% higher than the quarter average.
Shipments of domestic OCTG increased by 15% during the first quarter ended
December 31, 1997 from the comparable period of the prior year. Import
penetration of the domestic OCTG market increased to an estimated 20.8% during
the quarter as compared to 11.8% during the same quarter last year. Domestic
consumption of OCTG increased 15% during the same period. The domestic OCTG
business was also impacted by an estimated 38% increase in exports during the
quarter ended December 31, 1997, with exports accounting for an estimated 15.0%
of domestic production during the quarter. Maverick's energy related shipments
during the first quarter increased by 21.0% from the same quarter last year and
it's exports increased 81.3% from the same quarter of the previous year as the
Company's shipments to Canada grew. Industry inventory build created 12.1% of
additional demand for OCTG as compared to 3.8% during the same quarter last year
with a substantial portion of the inventory build in seamless products. Maverick
believes that the increased inventory level of OCTG is attributed to consumption
levels which increased by approximately the same magnitude. The Company believes
that the strengthened demand for its OCTG was the result of increased drilling
activity in the Company's traditional markets, principally on shore in the
continental United States and western Canada.
Management estimates the demand for the Company's structural tube (hollow
structural sections or HSS) products increased by 23% in the first quarter of
fiscal 1998 compared to the comparable quarter of last year. In addition,
management estimates that import penetration of HSS product remained relatively
level and inventories of HSS held by distributors were stable during the
quarter, both as compared to the same quarter last year. As a result of these
market conditions, domestic shipments of HSS rose by an estimated 24%. The
Company's shipments of industrial products rose by 37.1%, due to a 57.2%
increase in HSS shipments offset by a 33.8% decrease in standard pipe shipments.
Pricing of OCTG, line pipe and standard pipe was up 8.0%, 7.3%, and 7.8%,
respectively due to improved prime selling prices and a favorable product mix.
Structural product pricing remained relatively flat during the quarter.
Steel costs included in cost of goods sold decreased during the first quarter of
fiscal 1998 by $5 per ton, or 1.4% as compared to the quarter ended December 31,
1996 and by $7 per ton, or 2.0% during the December 31, 1997 quarter as compared
to the quarter ended September 30, 1997. Steel costs during the quarter were
above current replacement costs. The Company's major supplier of steel announced
two price decreases since mid-September which have reduced the Company's current
replacement cost by $35 per ton. Based upon current inventory levels, the
Company estimates that a substantial portion of these cost reductions will be
reflected in cost of goods sold in the second quarter of fiscal 1998. The supply
of steel is continuing to increase with four new steel mills having begun or are
scheduled to begin production of 6.2 million tons of additional hot rolled steel
in 1998. The Company anticipates that these additions have the potential to
further lower the Company's purchase price of hot rolled steel in the future.
RESULTS OF OPERATIONS
In the first quarter of fiscal 1998, total net sales increased $22.3 million, or
34.7% over the comparable period of the preceding fiscal year. Energy products
sales increased $16.9 million or 33.8% for the first quarter, while industrial
products sales increased $5.4 million or 38.0% for the first quarter as compared
with the comparable period in the prior year. These results were attributable
primarily to an increase of 26.7% in the Company's total product shipments, from
105,835 tons in the first fiscal quarter of 1997 to 134,104 tons in the first
fiscal quarter of 1998. Energy tons increased 17,609 tons, or 22.8%, in the
first quarter of 1998 as compared to the first quarter of 1997. Shipments of
industrial products increased 10,660 tons, or 37.2% in the first quarter of 1998
as compared to the first quarter of 1997. The sales and shipments of energy
products during the first fiscal quarter of 1998 increased substantially due to:
(i) increased activity in gas drilling by 28%, (ii) increased activity in oil
drilling by 4% and (iii) an 81.3% increase in Maverick's export sales. However,
the continuation of the current trend in oil prices to any significant extent
could have a negative impact on the OCTG business. The increase in sales and
shipments of industrial products was positively impacted by the Company's
strengthened position in the industrial products market. Average net selling
prices for energy products during the first quarter of fiscal 1998 as compared
to the comparable periods of fiscal 1997 increased by 9.1% from an average of
$647 per ton to $706 per ton. This improvement in selling prices is primarily
due to a substantial increase in demand for OCTG products. See "Overview."
Average net selling price for industrial products during the first quarter of
fiscal 1998, as compared to the comparable period of fiscal 1997 increased 0.6%
from an average of $495 per ton to $498 per ton. This slight increase for the
first quarter was due primarily to an improved selling prices.
Cost of goods sold increased $15.2 million or 26.4% in the first quarter of
fiscal 1998 over the comparable period of fiscal 1997. Energy products cost of
goods sold increased $11.4 million, or 25.5% in the first quarter of fiscal
1998. Industrial products cost of goods sold increased $3.8 million or 29.4% in
the first quarter of fiscal 1998. The overall increase was due primarily to
increased product shipments. However, the overall unit cost per ton of products
sold decreased 0.3% (from an average of $544 to $542) in the first quarter of
fiscal 1998 as compared to the comparable period of fiscal 1997. This decrease
was primarily due to a decrease in delivered steel costs during the fourth
quarter of fiscal 1997 and first quarter of fiscal 1998 resulting in a decrease
of the average prime steel cost of goods sold by $5 per ton over the first
quarter of fiscal 1997. See "Overview." The impact of such decrease in steel
costs was offset somewhat by the higher costing mix of energy products.
Gross profit increased $7.1 million or 106.7% for the first quarter of fiscal
1998 over the comparable period of fiscal 1997. Gross profit for energy products
increased $5.5 million, or 101.9%, while industrial products gross profit
increased approximately $1.6 million or 127.3%. The gross profit as a percentage
of net sales ("gross profit percentage") was 15.93% for the first quarter of
fiscal 1998 compared to 10.38% for the comparable period of fiscal 1997. Energy
gross profit percentage increased from 10.83% to 16.34% for the first quarter of
fiscal 1998, while industrial products increased from 8.81% to 14.51%. Energy
and industrial products gross profit percentage in the first quarter of fiscal
1998 benefited from improved selling prices and decreased steel costs.
Selling, general and administrative expenses increased by $498,000, or 18.5% in
the first quarter of fiscal 1998 over the comparable period of fiscal 1997.
Selling, general and administrative expenses were impacted by increased
industrial products commissions, general wage increases granted as of the
beginning of the 1998 fiscal year and small increases in personnel.
However, selling, general and administrative expenses as a percentage of net
sales in the first quarter of fiscal 1998 was 3.7% as compared to 4.2% for
the comparable period of fiscal 1997.
Interest expense decreased $76,000 or 14.7% in the first quarter of fiscal 1998
compared to the comparable period of fiscal 1997. The decreased interest expense
is primarily due to a lower average outstanding debt balance during the quarter.
The provision for income taxes increased $2.7 million or 316.1% in the first
quarter of fiscal 1998 as compared to the comparable period of fiscal 1997. This
increase is attributable to the higher level of pretax earnings generated by the
Company in the first quarter of 1998 and also a higher effective tax rate as the
Company has fully realized the benefits of existing net operating loss carry-
forwards and alternative minimum tax credits during 1997.
As a result of the increased gross profit and the other factors discussed above,
net income increased $4.0 million in the first quarter of fiscal 1998 from the
comparable period of fiscal 1997.
LIQUIDITY AND CAPITAL RESOURCES
Working capital at December 31, 1997 was $52.1 million, and the ratio of current
assets to current liabilities was 2.1 to 1.0, as compared to September 30, 1997
when working capital was $45.0 million and the ratio of current assets to
current liabilities was 1.7 to 1.0. The increase in working capital was
principally due to a $6.5 million decrease in accounts payable and accrued
liabilities and a $6.8 million decrease in deferred revenue, partially offset by
a $2.5 million decrease in cash and a $3.0 million decrease in accounts
receivable. The decrease in accounts payable and accrued liabilities resulted
from the payment of year end taxes and incentive compensation. The decrease in
deferred revenue is due to the normal increase in shipments of
customer-obligated inventory prior to calendar year-end. The decrease in cash is
due to application of available funds to reduce the balance of the Revolving
Credit Facility. The decrease in accounts receivable is due to an increase in
the collection of customer invoices on customer-obligated inventory. Cash
used in operating activities was $1.6 million for the three months ended
December 31, 1997. The primary source of cash was net income, exclusive of the
impact of non-cash items (primarily depreciation and amortization) of $8.0
million.
During the three months ended December 31, 1997, cash used in investing
activities was $2.9 million, all of which was attributable to purchases of
property, plant and equipment.
Cash provided by financing activities was $2.0 million. The Company's Revolving
Credit Facility increased $2.1 million primarily to partially fund the reduction
in accounts payable and accrued expenses. The Company's other long-term
indebtedness including current maturities was reduced by approximately $173,000.
The Company's capital budget for fiscal 1998 is approximately $9.5 million of
which $2.9 million was expended during the three months ended December 31, 1997.
The budgeted funds are being utilized principally to acquire new equipment for
existing manufacturing facilities. As of December 31, 1997, the Company had an
additional $2.7 million committed for the purchase of equipment.
The Company expects that it will meet its ongoing working capital and capital
expenditure requirements from a combination of cash flow from operations, which
constitutes its primary source of liquidity, and available borrowings under its
Revolving Credit Facility. The Revolving Credit Facility provides for maximum
borrowings up to the lesser of the eligible borrowing base or $27.5 million, and
bears interest at either the prevailing prime rate or an adjusted Eurodollar
rate, plus an interest margin, depending upon certain financial measurements.
The Revolving Credit Facility is secured by the Company's accounts receivable
and inventories and will expire on May 31, 1999. As of December 31, 1997, the
applicable interest rate was 7.12 percent per annum and the Company had $15.1
million in unused availability under the Revolving Credit Facility. As of
December 31, 1997, the Company had $434,000 in cash and cash equivalents.
MAVERICK TUBE CORPORATION AND SUBSIDIARIES
PART II. OTHER INFORMATION
ITEM 5. OTHER INFORMATION
On January 6, 1998, the Company announced the resignation of Charles O.
Struckhoff as Chief Financial Officer who will retire effective January 31,
1998. The Company has not yet announced the appointment of Mr.
Struckhoff's successor.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibit No. Description
11.1 Computation of Earnings per Share
27 Financial Data Schedule
(b) Reports on Form 8-K. No reports on Form 8-K were filed for the
quarterly period for which this report is filed.
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.
Maverick Tube Corporation
(Registrant)
Date: January 30, 1998 /s/ Gregg Eisenberg
-------------------
Gregg Eisenberg
President and Chief Executive Officer
Date: January 30, 1998 /s/ Charles Struckhoff
----------------------
Charles Struckhoff
Vice President -- Finance and Administration
(Chief Financial Officer)
Maverick Tube Corporation
and Subsidiaries
Exhibit 11.1 Computation of Earnings per Share
For quarter ended December 31
------------------------------------
1997 1996
----------------- ----------------
Basic:
Average shares outstanding 15,435,302 14,944,142
Net income used in per share calculation $ 6,570,000 $ 2,608,000
Rounding difference 0.00 0.01
Net income per common share $0.43 $0.18
Diluted:
Average shares outstanding 15,435,302 14,944,142
Net effect of stock options 223,636 139,561
----------------- ----------------
15,658,938 15,083,703
Net income used in per share calculation $ 6,570,000 $ 2,608,000
Rounding difference .00 0.01
Net income per common share $0.42 $0.18
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-START> OCT-01-1997
<PERIOD-END> DEC-31-1997
<CASH> 434
<SECURITIES> 0
<RECEIVABLES> 25,056
<ALLOWANCES> 355
<INVENTORY> 68,510
<CURRENT-ASSETS> 99,769
<PP&E> 85,599
<DEPRECIATION> 28,608
<TOTAL-ASSETS> 157,388
<CURRENT-LIABILITIES> 47,673
<BONDS> 0
0
0
<COMMON> 154
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 157,388
<SALES> 87,860
<TOTAL-REVENUES> 86,479
<CGS> 72,705
<TOTAL-COSTS> 3,196
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 442
<INCOME-PRETAX> 10,186
<INCOME-TAX> 3,616
<INCOME-CONTINUING> 6,570
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6,570
<EPS-PRIMARY> 0.43
<EPS-DILUTED> 0.42
</TABLE>
