SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-QSB
(Mark one)
(X) QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1998 OR
( ) TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE EXCHANGE ACT FOR THE
TRANSITION PERIOD FROM TO
--------- --------
Commission file number 0-439
AMERICAN LOCKER GROUP INCORPORATED
- --------------------------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
DELAWARE 16-0338330
(State or other (IRS Employer Identification Number)
jurisdiction of incorporation
or organization)
608 ALLEN STREET, JAMESTOWN, NY 14701
(Address of principal executive offices)
(716)664-9600
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year, if
changed since last report)
Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act during the past 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.
Yes / X / No / /
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE
PRECEDING FIVE YEARS:
Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court.
Yes / / No / / Not Applicable
APPLICABLE ONLY TO CORPORATE ISSUERS:
State the number of shares outstanding of each of the issuer's class of common
stock equity as of the latest practicable date: July 20, 1998
Common Stock $1.00 par value - 2,418,772
Transitional Small Business Disclosure (check one) Yes / / No / X /
<PAGE>
See accompanying notes.
Part I - Financial Information
Item 1 - Financial Statements
American Locker Group Incorporated and Subsidiaries
Consolidated Balance Sheets
<TABLE>
<CAPTION>
June 30, December 31,
1998 1997
---- ----
<S> <C> <C>
Assets
Current assets:
Cash and cash equivalents $1,108,707 $1,154,045
Accounts and notes receivable, less
allowance for doubtful accounts
(1998 $70,673; 1997 $423,733) 5,949,834 4,519,710
Inventories 5,840,756 3,636,528
Prepaid expenses 211,918 89,656
Prepaid federal, state and
foreign income taxes 0 32,515
Deferred income taxes 576,861 576,861
------- -------
Total current assets 13,688,076 10,009,315
Property, plant and equipment:
Land 500 500
Buildings 390,721 511,649
Machinery and equipment 8,097,046 8,004,338
--------- ---------
8,488,267 8,516,487
Less allowances for depreciation and
amortization 7,446,829 7,267,199
--------- ---------
1,041,438 1,249,288
Deferred income taxes 85,122 5,122
------ -----
Total assets $14,814,636 $11,263,725
========== ==========
</TABLE>
2
<PAGE>
American Locker Group Incorporated and Subsidiaries
Consolidated Balance Sheets
<TABLE>
<CAPTION>
June 30, December 31,
1998 1997
---- ----
<S> <C> <C>
Liabilities and stockholders' equity
Current liabilities:
Demand note payable $750,000 $850,000
Accounts payable:
Trade 2,659,666 737,467
Related party 247,510 434,565
------- -------
2,907,176 1,172,032
Commissions, salaries, wages
and taxes thereon 204,096 330,956
Other accrued expenses 413,963 435,232
Current portion of long-term debt 663,000 663,000
------- -------
Total current liabilities 4,938,235 3,451,220
Long-term obligations:
Long-term debt 2,099,500 2,431,000
Pension benefits 522,521 322,521
Postretirement benefits 139,839 139,839
------- -------
2,761,860 2,893,360
Stockholders' equity:
Common stock, $1 par value:
Authorized shares -- 4,000,000
Issued and outstanding shares --
2,418,772 in 1998 and 2,405,780
in 1997 2,418,772 2,405,780
Other capital 36,067 0
Retained earnings 4,829,004 2,662,445
Foreign currency translation adjustment (169,302) (149,080)
--------- ---------
Total stockholders' equity 7,114,541 4,919,145
Total liabilities and stockholders' equity $14,814,636 $11,263,725
See accompanying notes.
</TABLE>
3
<PAGE>
American Locker Group Incorporated and Subsidiaries
Consolidated Statements of Income
<TABLE>
<CAPTION>
Six Months Ended June 30,
1998 1997
---- ----
<S> <C> <C>
Net sales $21,394,533 $13,006,573
Cost of products sold 14,701,805 9,054,907
---------- ---------
6,692,728 3,951,666
Selling, administrative and general
expenses 3,170,805 2,620,542
--------- ---------
3,521,923 1,331,124
Interest income 36,131 15,346
Other (expense) income--net 131,883 74,397
Interest expense (130,723) (60,787)
--------- --------
Income before income taxes 3,559,214 1,360,080
Income taxes 1,382,910 582,301
--------- -------
Net Income $2,176,304 $777,779
========= =======
Earnings per share of common stock:
Basic $0.90 $0.24
==== ====
Diluted 0.86 0.24
==== ====
Dividends per share of common stock: $0.00 $0.00
===== =====
See accompanying notes.
</TABLE>
4
<PAGE>
American Locker Group Incorporated and Subsidiaries
Consolidated Statements of Income
<TABLE>
<CAPTION>
Three Months Ended June 30,
1998 1997
---- ----
<S> <C> <C>
Net Sales $11,604,876 $7,722,976
Cost of products sold 7,958,748 5,389,235
--------- ---------
3,646,128 2,333,741
Selling, administrative and general expenses 1,678,064 1,419,902
1,968,064 913,839
Interest income 19,293 8,137
Other (expense) income--net 67,020 43,629
Interest expense (64,055) (30,254)
-------- --------
Income before income taxes 1,990,322 935,351
Income taxes 743,914 381,378
------- -------
Net Income $1,246,408 $553,973
========= =======
Earnings per share of common stock:
Basic $0.52 $0.17
==== ====
Diluted 0.49 0.17
==== ====
Dividends per share of common stock: $0.00 0.00
==== ====
See accompanying notes.
</TABLE>
5
<PAGE>
American Locker Group Incorporated and Subsidiaries
Consolidated Statements of Cash Flows
<TABLE>
<CAPTION>
Six Months Ended June 30,
1998 1997
---- ----
<S> <C> <C>
Operating activities
Net income $2,176,304 $777,779
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 344,259 296,317
Loss (gain) on disposition of property,
plant and equipment 0 992
Deferred income taxes (credits) (80,000) 0
Pension benefits 200,000 0
Change in assets and liabilities:
Accounts and notes receivable (1,430,124) (843,229)
Inventories (2,204,228) 84,939
Prepaid expenses (122,262) 58,242
Accounts payable and accrued expenses 1,612,615 274,326
Prepaid income taxes 32,515 0
------ -
Net cash provided by operating activities 529,079 649,366
Investing activities
Purchase of property, plant and equipment (136,410) (95,962)
Proceeds from sale of property, plant
and equipment 0 208
- ---
Net cash used in investing activities (136,410) (95,754)
Financing activities
Net (repayment) borrowings under line of credit (100,000) (1,125,000)
Debt repayment (331,500) (300,000)
Common stock purchased and retired (98) (59,711)
Stock options exercised 13,813 0
------ -
New cash used in financing activities (417,785) (1,484,711)
Effect of exchange rate changes on cash (20,222) (6,397)
-------- -------
Net increase (decrease) in cash (45,338) (937,496)
Cash and cash equivalents at
beginning of period 1,154,045 1,229,222
--------- ---------
Cash and cash equivalents at end of period $1,108,707 $291,726
========= =======
Supplemental cash flow information:
Cash paid during the period for:
Interest $130,723 $60,787
======= ======
Income Taxes $1,247,592 $453,556
========= =======
See accompanying notes.
</TABLE>
6
<PAGE>
Notes to Consolidated Financial Statements
American Locker Group Incorporated and Subsidiaries
1. The accompanying unaudited consolidated condensed financial statements have
been prepared in accordance with instructions to Form 10-QSB and, in the
opinion of the Company, include all adjustments, consisting of normal
recurring accruals, considered necessary for a fair presentation of such
condensed financial statements. The condensed financial statements do not
include all information and footnotes normally associated with statements of
results of operations, financial condition, and cash flows prepared in
conformity with generally accepted accounting principles.
2. Provision for income taxes is based upon the estimated annual effective tax
rate.
3. Net income per common share is computed by dividing net income by the
weighted average number of shares outstanding, plus, when dilutive, the
common stock equivalents which would arise from the exercise of stock
options, during the periods.
The Company instituted a four-for-one stock distribution whereby three
additional shares were distributed on June 25, 1998 for every one share
outstanding on the June 4, 1998 record date. All share and per-share amounts
in the accompanying unaudited consolidated financial statements have been
retroactively adjusted to reflect this distribution and the total shares now
outstanding and subject to option. After accounting for the stock
distribution, basic and diluted weighted average shares outstanding were
2,417,261 (3,188,518 in 1997) and 2,544,943 (3,264,662 in 1997) for the six
month period ended June 30, 1998, respectively.
4. Inventories are valued at the lower of cost or market. Cost is determined by
using the last-in, first-out method for substantially all of the inventories.
<TABLE>
<CAPTION>
June 30, December 31,
1998 1997
---- ----
<S> <C> <C>
Raw materials $2,302,070 $1,041,732
Work-in-process 1,760,569 1,559,037
Finished goods 2,611,934 1,869,576
--------- ----------
$6,674,573 $4,470,345
Less allowance to
reduce carrying
value to LIFO (833,817) 833,817
basis --------- -------
$5,840,756 $3,636,528
========== ==========
</TABLE>
7
<PAGE>
Item 2. Management Discussion and Analysis of Financial Condition and Results
of Operations
American Locker Group Incorporated and Subsidiaries
LIQUIDITY AND SOURCES OF CAPITAL
The Company continues to have adequate resources and liquidity to maintain and
expand its operations. Working capital, or the excess of current assets over
current liabilities, at June 30, 1998 was $8,749,841, up $2,191,746 over working
capital of $6,558,095 at December 31, 1997. The increased working capital
resulted primarily from profitable operations during the first six months of
1998. The ratio of current assets to current liabilities was 2.8 to 1 at June
30, 1998, as compared to a ratio of 2.9 to 1 at December 31, 1997. The Company's
$3,000,000 line of credit is available to assist in satisfying future working
capital needs, if required.
The Company anticipates that its requirements for funds for operations and
capital expenditures will be provided principally from cash generated from
future operations.
FIRST SIX MONTHS 1998 VS FIRST SIX MONTHS 1997
Sales for the first six months of 1998 of $21,394,533 were up $8,387,960 or
64.5% compared to sales of $13,006,573 during the same period in 1997. Plastic
locker sales to the United States Postal Service (USPS) accounted for $7,599,194
of increased sales and totaled $15,072,663 compared to $7,473,469 during the
first half of 1997. Cluster Box Units (CBU's) sales were $13,983,872 compared to
$5,488,958 during the first half of 1997. Sales of Outdoor Parcel Lockers
(OPL's) were $1,088,791 compared to $1,984,511 in the first six months of 1997,
a decline of $895,720 or 45.1%. This decline was anticipated and previously
disclosed as all three model CBU's have parcel compartments built in thereby
reducing the demand for separate parcel lockers.
The growth in sales of CBU's, $8,494,914 or 154.8% over last year's first six
months, is directly related to the implementation of USPS procurement policy
that limits purchase of NDCBU's (the steel predecessor to plastic or aluminum
CBU's) in relation to the new CBU's and the Company's ability to maintain its
dominant market share position. As previously reported, the USPS has extended
the Company's national contract through April 14, 1999. Terms of the contract
extension were finalized on April 14, 1998 and established prices and minimum
quantities for the period April 15, 1998 through October 15, 1998.
Under this contract extension, the Company extended lower prices on CBUs in
return for guaranteed minimum shipments of 15,000 CBU's. However, the contract
extension stipulated that the minimum quantity, 15,000 CBU's, must be shipped by
August 1, 1998. The Company increased production rates and inventories on its
CBU product line in order to meet the contract extension stipulation. As of June
30, 1998, the Company has shipped approximately 6,800 CBU's against the 15,000
unit minimum, leaving a balance of approximately 8,200 CBU's to ship against the
minimum. Through continuing discussions with the USPS, the Company anticipates
that all the remaining 8,200 CBU's will be shipped in the Company's third
quarter. By way of comparison, approximately 6,600 and 8,600 CBU's were shipped
in the first and second quarters of 1998, respectively. After completion of the
15,000 minimum, the USPS may purchase additional CBU's at the prices established
in the contract extension, however it is not obligated beyond the 15,000 unit
minimum.
8
<PAGE>
Contract terms for the period October 16, 1998 through April 14, 1999 will be
negotiated prior to October 16, 1998. The Company believes that its CBU pricing
is competitive and that its CBU product line continues to represent the best
value when all factors, including quality of design and construction, long term
durability and service are considered.
All other sales, metal and electronic were $6,321,870 for the first six months
of 1998 compared to $5,533,104 for the first six months of 1997. This increase
of $788,766 or 14.3% relates to a general increase in demand across all markets
served by the Company.
Cost of products sold as a percentage of sales was 68.7% during the first six
months of 1998 compared to 69.6% in the first quarter of 1997. Increased gross
margins are directly related to increased sales volumes although tempered by
previous price concessions.
Selling, general and administrative costs for the first six months of 1998
increased $550,263 over the same period in 1997 due to increased freight, legal,
and pension expenses. Selling, general and administrative expense as a percent
of sales was 14.8% down from 20.1% during the first six months of 1997. The
decrease as a percentage of sales relates primarily to increased sales volume.
Other income-net of $131,883 in the first half of 1998 was up $57,486 from the
same period in 1997.
Interest expense in the first half of 1998 increased $69,936 from the same
period in 1997 as a result of higher outstanding debt.
SECOND QUARTER 1998 VS SECOND QUARTER 1997
Second quarter sales were $11,604,876 up $3,881,900 or 50.3% from the same
period in 1997. Plastic locker sales of $8,366,664 were up 87.3% or $3,899,612
over 1997's second quarter. Sales of other products, metal and electronic
lockers, were $3,238,212 during the second quarter of 1998, 0.5% lower than
1997's.
Cost of products sold as a percentage of sales was 68.6% during the second
quarter of 1998 down from 69.8% during the second quarter of 1997.
Selling, administrative and general expenses as a percent of net sales was 14.5%
during the second quarter of 1998 compared to 18.4% in the second quarter of
1997.
Other income-net of $67,020 in the second quarter of 1998 was up slightly from
$43,629 in the second quarter 1997.
Interest expense in the second quarter of $64,055 increased from $30,254 in the
second quarter of 1997.
9
<PAGE>
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Forward-looking statements in this report, including without limitation,
statements relating to the Company's plans, strategies, objectives,
expectations, intentions and adequacy of resources, are made pursuant to the
Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995.
Investors are cautioned that such forward-looking statements involve risks and
uncertainties including without limitation the following: (i) the Company's
plans, strategies, objectives, expectations, and intentions are subject to
change at any time at the discretion of the Company, (ii) the Company's plans
and results of operations will be affected by the Company's ability to manage
its growth and inventory, and (iii) other risks and uncertainties indicated from
time to time in the Company's filings with the Securities and Exchange
Commission.
Part II
Item 1. Legal Proceedings
As previously reported, four female employees of the Company have alleged in
suits entitled DERR ET AL V. AMERICAN LOCKER GROUP, INC., 94-CV-0515S(M), (US
District Court for Western District of New York) that they were the victims of
sex discrimination in their terminations and/or compensation and seeking
unspecified damages. On March 25, 1998, the Court granted summary judgment in
favor of the Company and dismissed the claims of three of the four plaintiffs.
The appeal period with respect to the dismissals has expired. On June 4, 1998,
the Company entered into a settlement with the remaining plaintiff whereby the
Company agreed to pay a monetary sum of $400,000 in full settlement of all
claims of the remaining plaintiff. The amount of such settlement was fully
reserved on the books of the Company.
Item 5. Other Information
As previously reported, on June 25, 1998, the Company distributed stock
certificates to implement the stock dividend declared on May 19, 1998 pursuant
to which holders of common stock on June 4, 1998 (the "Record Date") received
three additional shares of Company common for each share of Company common stock
held by such holder on the Record Date. As a result of such distribution, the
Company has been advised by NASDAQ that it now satisfies the minimum public
float requirements of NASDAQ. In addition, the Company has been advised that in
the period of time following such share distribution on June 25, 1998 it has
satisfied the NASDAQ requirement that at least two market makers make a market
in the Company common stock. So long as the Company continues to meet NASDAQ
listing criteria, it is expected that the Company will remain listed on the
NASDAQ National Market List.
10
<PAGE>
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 10.1 Second Amendment dated May 19, 1998 to Agreement dated
as of May 21, 1996 between American Locker Group Incorporated and
Edward F. Ruttenberg.
Exhibit 10.2 Fifth Amendment dated May 19, 1998 to Manufacturing
Agreement dated December 28, 1989 between American Locker Security
Systems, Inc. and Signore, Inc.
Exhibit 27.1 Financial Data Schedule dated June 30, 1997
Exhibit 27.2 Financial Data Schedule dated June 30, 1998
(b) Reports on Form 8-K
On May 20, 1998, the Company filed a Report on Form 8-K with respect to
the declaration of the stock distribution to holders of record on June
4, 1998 described in Item 5 above.
11
<PAGE>
S I G N A T U R E
In accordance with the requirements of the Exchange Act, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
AMERICAN LOCKER GROUP INCORPORATED
(Registrant)
/S/HAROLD J. RUTTENBERG
--------------------------------------------
Harold J. Ruttenberg Chairman, Chief
Executive Officer, Treasurer and Principal
Accounting Officer
Date: JULY 23, 1998
12
<PAGE>
EXHIBIT INDEX
Prior Filing
or Sequential
Exhibit No. Exhibit Index Page No. Herein
----------- ------------- ----------------
10.1 Second Amendment dated May 19,
1998 to Agreement dated as of
May 21, 1996 between American
Locker Group Incorporated and
Edward F. Ruttenberg
10.2 Fifth Amendment dated May 19,
1998 to Manufacturing Agreement
dated December 28, 1989 between
American Locker Security Systems,
Inc. and Signore, Inc.
27.1 Financial Data Schedule dated
June 30, 1997
27.2 Financial Data Schedule dated
June 30, 1998
13
<PAGE>
<PAGE>
SECOND AMENDMENT TO AGREEMENT
This Second Amendment made as of May 19, 1998, to Agreement dated
May 21, 1996 between AMERICAN LOCKER GROUP INCORPORATED (the "Company") and
EDWARD F. RUTTENBERG ("Mr. .Ruttenberg")
WHEREAS, the Company and Mr. Ruttenberg are parties to an Agreement
dated May 21, 1996, as amended, (the "Agreement"); and
WHEREAS, the Company and Mr. Ruttenberg wish to make certain
amendments to the Agreement.
NOW, THEREFORE, for good and valuable consideration and intending to
be legally bound hereby, the Company and Mr. Ruttenberg agree as follows:
1. All defined terms used herein shall have the same
definitions set forth in the Agreement.
2. Section 1.5 is hereby amended and restated as follows:
"Term" shall mean the period from the date hereof through
June 30, 1999.
3. Section 3.1 is hereby amended to delete the phrase "$4,170
per month" and to insert in lieu thereof the phrase "$5,417
per month."
4. Except as expressly provided herein, the Agreement shall
remain unamended and in full force and effect.
WITNESS the due execution hereof.
AMERICAN LOCKER GROUP INCORPORATED
By /s/ Harold J. Ruttenberg
-------------------------------------
Title: Chairman, Chief Executive Officer
and Treasurer
/s/ Edward Ruttenberg
-------------------------------------
Edward F. Ruttenberg
<PAGE>
FIFTH AMENDMENT TO MANUFACTURING AGREEMENT
This Fifth Amendment made as of May 19, 1998, to Manufacturing
Agreement dated December 29, 1989 between SIGNORE, INC., a Delaware corporation
("Seller") and AMERICAN LOCKER SECURITY SYSTEMS, INC., a Delaware
corporation ("Buyer").
WHEREAS, Seller and Buyer are parties to a Manufacturing Agreement
dated December 29, 1989, as amended by the First Amendment to Manufacturing
Agreement dated as of May 3, 1995, as further amended by the Second Amendment to
Manufacturing Agreement dated as of March 15, 1996, as further amended by the
Third Amendment to Manufacturing Agreement dated as of May 21, 1996 and as
further amended by the Fourth Amendment to Manufacturing Agreement dated as of
May 20, 1997 (such Manufacturing Agreement, as so amended, the "Amended
Agreement"); and
WHEREAS, Seller and Buyer wish to make certain amendments to the
Amended Agreement.
NOW, THEREFORE, for good and valuable consideration and intending to
be legally bound hereby, Seller and Buyer agree as follows:
1. All defined terms used herein shall have the definitions set
forth in the Amended Agreement.
2. Buyer and Seller acknowledge that as of December 31, 1997, the
Remaining Inventory Value of Locker Inventory (as defined in
Section 3(f) of the Amended Agreement) was $1,301,339.19. In
accordance with the provisions of Section 3(f) of the Amended
Agreement, Buyer has paid to Seller the sum of $41,753.19,
receipt of which is acknowledged by Seller.
Such $41,753.19 payment is calculated as follows:
Actual Inventory 12/31/97 $1,301,339.19
Remaining Inventory Value 1/1/97 1,259,586.00
-------------
Payment Due from Buyer to Seller $ 41,753.19
===============
3. Buyer and Seller agree that Locker Inventory determined on
a pro forma basis as of December 31, 1997 as if all payments
required under Section 2 hereof had been made as of that date
was $1,301,339.19 (i.e. Remaining Locker Inventory as of
January 1, 1997 of $1,259,586 plus the $41,753.19 payment made
by Buyer under Section 2 hereof).
4. Except as expressly provided herein, the Amended Agreement
shall remain unamended and in full force and effect.
<PAGE>
WITNESS the due execution hereof.
SIGNORE, INC.
By /s/ Alexander Ditonto
----------------------------------
Title: Chairman and Chief Executive
Officer
AMERICAN LOCKER SECURITY SYSTEMS, INC.
By /s/ Harold J. Ruttenberg
---------------------------------
Title: Chairman, Chief Executive
Officer and
Treasurer
-2-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Exhibit 27.1
American Locker Group Incorporated
Financial Data Schedule
June 30, 1997
This schedule contains summary financial information extracted from SEC Form
10-QSB and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<CIK> 0000008855
<NAME> AMERICAN LOCKER GROUP INCORPORATED
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<EXCHANGE-RATE> 1.0000
<CASH> 291,726
<SECURITIES> 0
<RECEIVABLES> 4,206,506
<ALLOWANCES> 425,058
<INVENTORY> 3,254,729
<CURRENT-ASSETS> 8,440,718
<PP&E> 8,194,665
<DEPRECIATION> 7,054,308
<TOTAL-ASSETS> 9,581,075
<CURRENT-LIABILITIES> 2,662,357
<BONDS> 400,000
0
0
<COMMON> 3,181,568
<OTHER-SE> 2,888,250
<TOTAL-LIABILITY-AND-EQUITY> 9,581,075
<SALES> 13,006,573
<TOTAL-REVENUES> 13,096,316
<CGS> 9,054,907
<TOTAL-COSTS> 9,054,907
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 6,000
<INTEREST-EXPENSE> 60,787
<INCOME-PRETAX> 1,360,080
<INCOME-TAX> 582,301
<INCOME-CONTINUING> 777,779
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 777,779
<EPS-PRIMARY> .24
<EPS-DILUTED> .24
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Exhibit 27.2
American Locker Group Incorporated
Financial Data Schedule
June 30, 1998
This schedule contains summary financial information extracted from SEC Form
10-QSB and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<CIK> 0000008855
<NAME> AMERICAN LOCKER GROUP INCORPORATED
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<EXCHANGE-RATE> 1.0000
<CASH> 1,108,707
<SECURITIES> 0
<RECEIVABLES> 5,949,834
<ALLOWANCES> 70,673
<INVENTORY> 5,840,756
<CURRENT-ASSETS> 13,688,076
<PP&E> 8,488,267
<DEPRECIATION> 7,446,829
<TOTAL-ASSETS> 14,814,636
<CURRENT-LIABILITIES> 4,938,235
<BONDS> 2,099,500
0
0
<COMMON> 2,418,772
<OTHER-SE> 4,695,769
<TOTAL-LIABILITY-AND-EQUITY> 14,814,636
<SALES> 21,394,533
<TOTAL-REVENUES> 21,562,547
<CGS> 14,701,805
<TOTAL-COSTS> 14,701,805
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 6,000
<INTEREST-EXPENSE> 130,723
<INCOME-PRETAX> 3,559,214
<INCOME-TAX> 1,382,910
<INCOME-CONTINUING> 2,176,304
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,176,304
<EPS-PRIMARY> .90
<EPS-DILUTED> .86
</TABLE>
