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 quarterly period ended April 24, 1999
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 0-549
SCHULTZ SAV-O STORES, INC.
----------------------------------------------------
(Exact Name of Registrant as Specified in its Charter)
WISCONSIN 39-0600405
-------------------------------- ------------------
(State or other jurisdiction (I.R.S. Employer
of incorporation of organization) Identification No.)
2215 UNION AVENUE
SHEBOYGAN, WISCONSIN 53081
---------------------- ----------
(Address of principal (Zip Code)
executive offices)
Registrant's telephone number
including area code 920-457-4433
---------------------------------------------------
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 (of for such shorter period that the
registrant was required to file such reports), and (2) has been subject to the
filing requirements for the past 90 days. Yes X No
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all reports
required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act
of 1934 subsequent to the distribution of securities under a plan confirmed by a
court. Yes No
APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding
of each of the issuer's classes of common stock, as of the latest practicable
date.
As of May 24, 1999, 6,430,179 shares of Common Stock, $0.05 par value, were
issued and outstanding.
<PAGE>
SCHULTZ SAV-O STORES, INC.
FORM 10-Q INDEX
PAGE
NUMBER
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets 3
Unaudited Consolidated Statements of Earnings 4
Unaudited Consolidated Statements of Cash Flows 5
Notes to Unaudited 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
Item 2. Changes in Securities and Use of Proceeds 12
Item 6. Exhibits and Reports on Form 8-K 12
SIGNATURES 12
2
<PAGE>
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
SCHULTZ SAV-O STORES, INC.
CONSOLIDATED BALANCE SHEETS
- - --------------------------------------------------------------------------------
(Unaudited) (Audited)
April 24, January 2,
Assets 1999 1999
- - --------------------------------------------------------------------------------
Current assets:
Cash and equivalents $ 29,432,000 $ 34,334,000
Receivables 9,654,000 6,233,000
Inventories 21,959,000 23,951,000
Other current assets 3,499,000 2,385,000
Deferred Income taxes 4,376,000 4,376,000
- - --------------------------------------------------------------------------------
Total current assets 68,920,000 71,279,000
- - --------------------------------------------------------------------------------
Noncurrent receivable under capital subleases 5,986,000 6,107,000
Property under capital leases, net 2,411,000 2,499,000
Other noncurrent assets 3,325,000 3,524,000
Property and equipment, net 21,146,000 21,687,000
- - --------------------------------------------------------------------------------
$101,788,000 $105,096,000
================================================================================
Liabilities and Shareholders' Investment
- - --------------------------------------------------------------------------------
Current liabilities:
Accounts payable $ 23,257,000 $ 24,798,000
Accrued salaries and benefits 4,869,000 5,040,000
Accrued insurance 3,198,000 3,020,000
Retail repositioning reserve 594,000 685,000
Other accrued liabilities 2,950,000 4,060,000
Current obligations under capital leases 669,000 656,000
Current maturities of long-term debt 148,000 136,000
- - --------------------------------------------------------------------------------
Total current liabilities 35,685,000 38,395,000
- - --------------------------------------------------------------------------------
Long-term obligations under capital leases 9,550,000 9,764,000
Long-term debt 2,948,000 3,021,000
Deferred income taxes 831,000 831,000
Shareholders' investment:
Common stock 438,000 438,000
Additional paid-in capital 14,359,000 14,359,000
Retained earnings 59,095,000 57,792,000
Treasury stock (21,118,000) (19,504,000)
- - --------------------------------------------------------------------------------
Total shareholders' investment 52,774,000 53,085,000
- - --------------------------------------------------------------------------------
$101,788,000 $105,096,000
================================================================================
3
<PAGE>
SCHULTZ SAV-O STORES, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF EARNINGS
------------------------------------------------------------------------------
For the 16-weeks ended
April 24, 1999 April 25, 1998
------------------------------------------------------------------------------
Net sales $ 146,951,000 $ 142,142,000
Costs and expenses:
Cost of products sold 123,155,000 119,079,000
Operating and
administrative expenses 20,965,000 20,301,000
Operating income 2,831,000 2,762,000
Interest income 392,000 305,000
Interest expense (231,000) (271,000)
Earnings before income taxes 2,992,000 2,796,000
Provision for income taxes 1,161,000 1,085,000
------------------------------------------------------------------------------
Net earnings $ 1,831,000 $ 1,711,000
==============================================================================
Earnings per share - basic $ 0.28 $ 0.25
Earnings per share - diluted $ 0.27 $ 0.24
Cash dividends paid per share
of common stock $ 0.08 $ 0.07
Weighted average common shares
and equivalents 6,756,000 7,012,000
4
<PAGE>
SCHULTZ SAV-O STORES, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
- - --------------------------------------------------------------------------------
For the 16-weeks ended
April 24, 1999 April 25, 1998
- - --------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 1,831,000 $ 1,711,000
Adjustments to reconcile net earnings to
net cash flows from operating activities
Depreciation and amortization 1,527,000 1,574,000
Changes in assets and liabilities
Receivables (3,421,000) (1,273,000)
Inventories 1,992,000 110,000
Other current assets (1,032,000) (265,000)
Accounts payable (1,541,000) 2,673,000
Accrued liabilities (1,194,000) (766,000)
- - --------------------------------------------------------------------------------
Net cash flows from operating activities (1,838,000) 3,764,000
- - --------------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Expenditures for property and equipment (787,000) (749,000)
Receipt of principal amounts under capital
sublease agreements 125,000 136,000
Other 2,000 36,000
- - --------------------------------------------------------------------------------
Net cash flows from investing activities (660,000) (577,000)
- - --------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment for acquisition of treasury stock (1,627,000) (673,000)
Payment of cash dividends (528,000) (477,000)
Principal payments under capital lease
obligations (201,000) (205,000)
Principal payments on long-term debt (61,000) (121,000)
Proceeds from exercise of stock options - 232,000
Other 13,000 14,000
- - --------------------------------------------------------------------------------
Net cash flows from financing activities (2,404,000) (1,230,000)
- - --------------------------------------------------------------------------------
CASH AND EQUIVALENTS:
Net change (4,902,000) 1,957,000
Balance, beginning of period 34,334,000 23,124,000
- - --------------------------------------------------------------------------------
Balance, end of period $ 29,432,000 $ 25,081,000
================================================================================
SUPPLEMENTAL CASH FLOW DISCLOSURES:
Interest paid $ 226,000 $ 293,000
Income taxes paid 1,349,000 1,068,000
5
<PAGE>
SCHULTZ SAV-O STORES, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(1) Basis of Presentation
The financial statements included herein have been prepared by the Company,
without audit. Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted, although the Company believes that
the disclosures are adequate to make the information presented not misleading.
The interim financial statements furnished with this report reflect all
adjustments of a normal recurring nature, which are, in the opinion of
management, necessary for a fair statement of the results for the interim
periods presented. It is suggested that these financial statements be read in
conjunction with the audited financial statements and the notes thereto included
in the Company's 1998 annual report to shareholders, as incorporated by
reference in the Company's Form 10-K for the fiscal year ended January 2, 1999.
(2) Interest Expense
- - --------------------------------------------------------------------------------
For the 16 weeks ended
April 24, 1999 April 25, 1998
- - --------------------------------------------------------------------------------
Imputed - capital leases $ 137,000 $ 145,000
Long-term debt 94,000 100,000
Other - 26,000
- - --------------------------------------------------------------------------------
Interest expense $ 231,000 $ 271,000
================================================================================
(3) Other Current Assets
- - --------------------------------------------------------------------------------
April 24, 1999 January 2, 1999
- - --------------------------------------------------------------------------------
Property held for resale $ 1,727,000 $ 578,000
Prepaid expenses 737,000 1,086,000
Retail systems and supplies for resale 633,000 314,000
Receivable under capital subleases 402,000 407,000
- - --------------------------------------------------------------------------------
Other current assets $ 3,499,000 $ 2,385,000
================================================================================
(4) Segment Reporting
The Company adopted FAS Statement No. 131, "Disclosures about Segments of an
Enterprise and Related Information" for its fiscal 1998. Based on management
responsibility, the Company identified two business segments, wholesale and
retail, in which it operates.
The Company's management utilizes several measurement tools in evaluating each
segment's performance and each segment's resource requirements. However, the
principal measurement tools are consistent with the Company's consolidated
financial statements and accordingly are reported on a similar basis. Wholesale
operating profits on sales through the Company's corporate stores are allocated
to the retail segment. The "corporate" heading includes corporate-related items,
principally cash and equivalents. As it relates to operating income, "corporate"
heading includes corporate-related items allocated to the appropriate segments.
6
<PAGE>
Summarized financial information for the first quarters of 1999 and 1998
concerning the Company's reportable segments is shown in the following tables
(in thousands):
- - --------------------------------------------------------------------------------
Sales 1999 1998
- - --------------------------------------------------------------------------------
Wholesale sales $ 122,493 $ 119,357
Intracompany sales (38,304) (37,374)
Net wholesale sales 84,189 81,983
Retail sales 62,762 60,159
- - --------------------------------------------------------------------------------
Total sales $ 146,951 $ 142,142
================================================================================
- - --------------------------------------------------------------------------------
Earnings Before Income Tax 1999 1998
- - --------------------------------------------------------------------------------
Wholesale $ 2,326 $ 2,288
Retail 505 474
Total operating income 2,831 2,762
Interest income 392 305
Interest expense (231) (271)
- - --------------------------------------------------------------------------------
Earnings before income taxes $ 2,992 $ 2,796
================================================================================
(5) Reclassification
Certain first quarter 1998 information previously reported has been reclassified
to conform to the first quarter 1999 presentation.
7
<PAGE>
Item 2. Management's Discussion and Analysisof
Financial Condition and Results of Operations
Results of Operations
- - ---------------------
Selected costs and results as a percent of net sales:
- - --------------------------------------------------------------------------------
For the 16-weeks ended
April 24, 1999 April 25, 1998
- - --------------------------------------------------------------------------------
Cost of products sold 83.8% 83.7%
Operating and administrative expenses 14.3 14.3
Earnings before income taxes 2.0 2.0
Net earnings 1.3 1.2
- - --------------------------------------------------------------------------------
Net Sales
Net sales for the 16-week first quarter ended April 24, 1999 were nearly $147.0
million, compared to $142.1 million for the same period in 1998. The increase of
$4.8 million, or 3.4%, was due to increased retail and wholesale sales volume.
Retail sales for the first quarter of 1999 improved 4.3%, or $2.6 million, to
$62.8 million compared to $60.2 million for the same period last year. This
increase was due primarily to the Appleton market replacement corporate store
that was opened on August 19, 1998. The retail sales increase was achieved
despite the absence of food price inflation during the first quarter of 1999.
Net wholesale sales volume for the first quarter of 1999 increased 2.7%, or $2.2
million, to $84.2 million, compared to $82.0 million for the same quarter in
1998. Net wholesale sales benefited from the completion of franchise facility
projects in Howards Grove, Waupaca and Lomira in 1998 and, to a lesser extent,
in Fort Atkinson in March 1999. Wholesale sales, however, were negatively
impacted by the two consolidations that were completed in November 1998 and
January 1999 resulting in two franchise store closures. Net sales continued to
benefit from the continued success of the Piggly Wiggly Preferred Club(R) Card,
a sophisticated electronic card marketing initiative that rewards shoppers with
instant savings, incentives and promotions. As of April 24, 1999, the Company
had 67 independent franchise-owned supermarkets and 18 corporate stores, all
operating under the Piggly Wiggly banner.
Consistent with the Company's business strategy to continue to expand its
wholesale volume, since April 24, 1999, the Company has completed the following
franchise facility projects:
= opened one new market franchise supermarket approximating 26,000 square
feet in Cottage Grove, Wisconsin; and
= substantially completed the facility expansion projects in Beaver Dam,
Crivitz and Randolph, Wisconsin, thereby increasing the stores' square
footage by approximately 35%.
In addition to these recently completed projects, the Company expects to
complete the expansion of one franchise supermarket in Kiel, Wisconsin during
the second quarter of 1999. The Company anticipates that these franchise stores
will have a positive impact on wholesale sales for the rest of the year. The
expected sales increase from these projects should offset the anticipated
slowdown in sales trend due to increased competitive activity in several of the
Company's market areas; the closure of two franchise stores as part of two
recent consolidations; and the continued lack of any food price inflation.
As part of the Company's continuing efforts to increase its sales, the Company
plans to begin two replacement supermarket projects, one of which is a corporate
store, during the second half of 1999. The Company expects the square footage of
these two stores in Racine and Pardeeville, Wisconsin to double in size from
approximately 30,000 to 60,000 square feet. Both projects are expected to be
completed in 2000.
8
<PAGE>
Cost of Products Sold
Cost of products sold, as a percent of sales, increased 0.1% to 83.8% for the
first quarter of 1999, compared to the same quarter in 1998. The Company's sales
mix of 42.8% retail and 57.2% wholesale for the first quarter of 1999 was
comparable to the 42.4% retail and 57.6% wholesale sales mix for the same
quarter last year. Due to competitive pressures, the Company's gross margin
essentially stayed constant between the periods in spite of a small increase in
higher margin retail sales relative to total sales. Based solely on the
anticipated sales increase from completed franchise facility projects, the
Company expects the wholesale sales mix to increase nominally for the rest of
1999.
Operating and Administrative Expenses
Operating and administrative expenses, as a percent of sales, remained constant
at 14.3% between the first quarters of 1999 and 1998. Total operating and
administrative expenses increased $664,000 for the first quarter of 1999. More
than 60% of the additional expenses was attributable to higher operating
expenses the Company incurred in connection with its newer Appleton replacement
corporate store, compared to the older noncompetitive store that was closed in
August 1998.
Due to the ongoing highly competitive nature of the industry in the Company's
markets, certain Company franchise operators and corporate retail supermarkets
continue to experience operational difficulties in their respective
marketplaces. The Company continues to evaluate various business alternatives
relating to its underperforming operations. The Company's business alternatives
include, but are not limited to, the sale and subsequent conversion of corporate
stores to franchise units, closing stores, or implementing other operational
changes. Similar to certain prior years, implementation of these alternatives
may result in the Company incurring certain repositioning or restructuring
charges for replaced, closed or sold stores. These actions can negatively impact
net earnings in the short-term, but the Company believes that such actions will
help improve the Company's long-term profitability.
Net Earnings
Net earnings for the first quarter of 1999 increased 7.0% to $1.8 million,
compared to $1.7 million for the same period last year. Net earnings for the
first quarter of 1999 benefited from a combination of gross margin contribution
from increased retail and wholesale sales volume, increased interest income from
short-term investment of cash and reduced interest expense due to a reduction in
long-term debt. With continuing improvements in sales and productivity, the
Company's net earnings-to-sales ratio for the first quarter of 1999 improved to
1.3%, compared to 1.2% for the first quarter of 1998. Additionally, the Company
has 25 consecutive quarters of increased earnings over the prior year's
comparable quarter. Diluted earnings per share for the first quarter of 1999
increased 12.5% to $0.27 from $0.24 for the same quarter last year. On a
percentage basis, diluted earnings per share increased more than net earnings
due to additional share repurchases aggregating 333,100 shares since April 25,
1998, which reduced the weighted average common shares and equivalents
outstanding.
9
<PAGE>
Liquidity and Capital Resources
- - -------------------------------
At April 24, 1999, the Company had cash and equivalents totaling $29.4 million.
At year-end 1998, cash and equivalents aggregated $34.3 million. The net cash
utilization of $4.9 million was attributable to certain significant operational,
investing and financing activities as described below.
The Company had net cash outflows from operating activities aggregating $1.8
million during the first quarter of 1999, compared to a net cash inflow of $3.8
million for the same quarter in 1998. The first quarter increase in receivables
of $3.4 million over the 1998 year-end balance was due principally to a $2.0
million increase in short-term financing to the Company's wholesale customers.
The Company expects to settle these short-term financing receivables during the
second and third quarters of 1999. The additional $1.4 million increase was due
to timing of cash receipts. Although inventory levels based on replacement cost
at April 24, 1999 decreased by nearly $2.0 million, this decrement, on an
overall basis, did not positively impact cash flows due to the corresponding
decrease in accounts payable. The cash flow realized from net earnings before
depreciation and amortization for the first quarter of 1999 and 1998 totaled
$3.4 million and $3.3 million, respectively.
The Company incurred $787,000 in capital expenditures during the first quarter
of 1999. More than 85% of the expenditures related to retail store equipment and
technological upgrades. At April 24, 1999, of the fiscal 1999 capital budget of
$3.3 million, the Company has approximately $2.5 million available for the rest
of the year. Total capital expenditures for the first quarter of 1998 were
comparable at $749,000.
The Company repurchased 98,100 shares of its common stock during the first
quarter of 1999 at an aggregate price of $1.6 million as part of the Company's
existing stock repurchase program. During the first quarter of 1998, total
repurchases were only $673,000. First quarter 1999 cash dividend payouts totaled
$528,000 compared to $477,000 for the same period last year. The
quarter-to-quarter cash dividend per share increased to $0.08, or 14.3%, from
$0.07 last year. With the percentage increase in dividends per share higher than
the net earnings percentage increase, the first quarter dividend payout as a
percentage of net earnings increased to 28.8%, compared to 27.9% for the same
period last year.
The Company's working capital position at April 24, 1999 was $33.2 million,
compared to $32.9 million at January 2, 1999. The Company's current ratio at
April 24, 1999 was 1.93 to 1.00 with cash and equivalents constituting $29.4
million of the working capital. The Company also has unsecured revolving bank
credit facilities aggregating $16.0 million which remains available for use in
its entirety. At April 24, 1999, the Company's liquidity position continues to
be very favorable and strong.
Year 2000 Issues
- - ----------------
A team, staffed primarily with internal professionals within the Company's
business systems group and some outside consultants on an as-needed basis,
developed a plan in 1997 to assess its information technology ("IT") and
non-information technology systems. The plan consisted of three main project
phases: (1) to make an inventory listing of all IT and non-IT systems that may
be subject to the year 2000 issue along with an assessment as to the scope of
the issue as it related to these systems; (2) to remediate any and all year 2000
compliance problems; and (3) to test, validate and implement systems subsequent
to remediation.
As of April 24, 1999, the Company believes it is essentially on schedule to
complete all testing, validation and implementation of all IT and non-IT systems
before the end of the year. Based on tests, validation and implementation that
have been completed to date, the Company expects to be year 2000 compliant.
Total year 2000 expenses are not expected to exceed $500,000, of which
approximately $360,000 will be charged to operations during fiscal 1999. During
the first quarter of 1999, the Company incurred nearly $150,000.
10
<PAGE>
As part of the year 2000 project, the Company has identified business
relationships with third parties, including suppliers, vendors, financial
institutions and other service providers, which the Company believes are
critical to its business operations. The Company has been communicating with
these third parties through correspondence and/or interviews to ascertain the
extent to which they are addressing their year 2000 compliance issues. The
Company will continue to assess and monitor the progress of these third parties
in resolving year 2000 issues. The Company undertakes a certain amount of risk
by relying on the third parties' own year 2000 assessments. Because of this, the
Company believes that a key vendor's failure to resolve its year 2000 issues is
the most likely worst case scenario for the Company. Such failure could result
in the Company not being able to procure products from a key vendor on a timely
basis. The Company does not expect this most likely worst case scenario to have
a material adverse impact on its core retail and wholesale businesses due
principally to the Company's network of alternative suppliers and vendors. The
Company will, however, develop contingency plans to work with these key third
parties.
Special Note Regarding Forward-Looking Statements
- - -------------------------------------------------
Certain matters discussed in this Form 10-Q are "forward-looking statements"
intended to qualify for the safe harbors from liability established by the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements can generally be identified as such because the context of the
statement will include words such as the Company "believes," "anticipates,"
"expects" or words of similar import. Similarly, statements that describe the
Company's future plans, objectives, strategies or goals are also forward-looking
statements. Such forward-looking statements are subject to certain risks and
uncertainties including, but not limited, to the following: (i) presence of
intense competitive market activity in the Company's market areas; (ii) ability
to identify and develop new market locations for expansion purposes; (iii)
continuing ability to obtain reasonable vendor marketing funds for promotional
purposes; (iv) ongoing advancing information technology requirements; (v)
ongoing absence of food price inflation; and (vi) the Company's ability to
continue to recruit, train and retain quality franchise and corporate retail
store operators. Due principally to the competitive nature of the industry and
to the quality of its retail store operators, the Company continues to evaluate
various courses of action relating to its underperforming retail operations.
These courses of action include closures, conversions and consolidations of
retail stores. Implementation of these actions can result in certain
repositioning charges to the Company. Shareholders, potential investors and
other readers are urged to consider these factors carefully in evaluating the
forward-looking statements and are cautioned not to place undue reliance on such
forward-looking statements. The forward-looking statements made herein are only
made as of the date of this report and the Company undertakes no obligation to
publicly update such forward-looking statements to reflect subsequent events or
circumstances.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
The Company believes that its exposure to market risks related to changes in
foreign currency exchange rates, interest rate fluctuations and trade accounts
receivable is immaterial.
11
<PAGE>
PART II Other Information
Item 2. Changes in Securities and Use of Proceeds
In accordance with its program for annual compensation of independent directors,
on January 28, 1999, the Company issued 300 shares of its Common Stock to each
of its three non-employee directors that are not otherwise compensated by the
Company for professional services. The Company issued such shares without
registration under the Securities Act of 1933 in reliance on Section 4(2) of
such Act.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 27 Financial Data Schedule.
(b) No reports of Form 8-K were filed by the Company during the first
quarter of fiscal 1999.
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.
SCHULTZ SAV-O STORES, INC.
(Registrant)
May 25, 1999 /s/ Armand C. Go.
------------ -------------------------------------------
(Date) Armand C. Go, Vice President, Treasurer and
Chief Accounting Officer
12
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL
STATEMENTS OF NSCHULTZ, SAV-O STORES, INC. AS OF AND FOR THE FOUR MONTHS ENDED
APRIL 24, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 4-MOS
<FISCAL-YEAR-END> JAN-01-2000
<PERIOD-START> JAN-03-1999
<PERIOD-END> APR-24-1999
<CASH> 29,432,000
<SECURITIES> 0
<RECEIVABLES> 9,654,000 <F1>
<ALLOWANCES> 0 <F1>
<INVENTORY> 21,959,000
<CURRENT-ASSETS> 68,920,000
<PP&E> 58,243,000
<DEPRECIATION> 37,097,000
<TOTAL-ASSETS> 101,788,000
<CURRENT-LIABILITIES> 35,685,000
<BONDS> 2,948,000
438,000
0
<COMMON> 0
<OTHER-SE> 52,336,000
<TOTAL-LIABILITY-AND-EQUITY> 101,788,000
<SALES> 146,951,000
<TOTAL-REVENUES> 146,951,000
<CGS> 123,155,000
<TOTAL-COSTS> 0 <F2>
<OTHER-EXPENSES> 20,965,000 <F2>
<LOSS-PROVISION> 0 <F2>
<INTEREST-EXPENSE> 231,000
<INCOME-PRETAX> 2,992,000
<INCOME-TAX> 1,161,000
<INCOME-CONTINUING> 1,831,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,831,000
<EPS-BASIC> 0.28
<EPS-DILUTED> 0.27
<FN>
<F1> Net of "Allowances for doubtful accounts".
<F2> Amounts included in "Other Costs and expenses".
</FN>
</TABLE>
