SECURITIES AND EXCHANGE COMMISSION DRAFT
Washington, DC 20549
FORM 10-Q
(Mark one)
(X) QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1999 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
- ------------------------------ -----------------------------------
(Sate of other jurisdiction of (IRS Employer Identification number)
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: April 27, 1999
Common Stock $1.00 par value - 2,498,772
1
<PAGE>
Part I - Financial Information
Item 1 - Financial Statements
<TABLE>
American Locker Group Incorporated and Subsidiaries
Consolidated Balance Sheets
<CAPTION>
MARCH 31, December 31,
1999 1998
------------- ------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 1,195,484 $ 1,188,007
Accounts and notes receivable,
less allowance for doubtful
accounts (1999 $219,136; 1998
$216,062) 3,894,296 4,062,802
Inventories 6,230,968 6,312,131
Prepaid expenses 108,990 150,808
Prepaid federal, state and foreign
income taxes 773,941 0
Deferred income taxes 501,477 501,477
------------ ------------
Total current assets 12,705,156 12,215,225
Property, plant and equipment:
Land 500 500
Buildings 389,720 388,795
Machinery and equipment 8,533,747 8,408,983
------------ ------------
8,923,967 8,798,278
Less allowances for depreciation and
Amortization 7,818,986 7,681,632
------------ ------------
1,104,981 1,116,646
Deferred income taxes 137,645 137,645
------------ ------------
Total assets $ 13,947,782 $ 13,469,516
============ ============
</TABLE>
2
<PAGE>
<TABLE>
American Locker Group Incorporated and Subsidiaries
Consolidated Balance Sheets
<CAPTION>
MARCH 31, December 31,
1999 1998
------------ ------------
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Demand note payable $ 0 $ 0
Accounts payable 1,409,393 1,574,809
Commissions, salaries, wages and
taxes thereon 142,998 639,822
Other accrued expenses 671,536 600,582
Federal, state and foreign income taxes
thereon 0 82,941
Current portion of long-term debt 200,000 200,000
------------- ------------
Total current liabilities 2,423,927 3,098,154
Long-term obligations:
Long-term debt 483,323 533,333
Pension benefits 625,030 573,973
------------- ------------
1,108,353 1,107,306
Stockholders' equity:
Common stock, $1 par value:
Authorized shares --- 4,000,000
Issued and outstanding shares
--- 2,498,772 in 1999 and 2,422,772
in 1998 2,498,772 2,422,772
Other capital 538,492 74,867
Retained earnings 7,568,794 6,976,987
Accumulated other comprehensive loss (190,556) (210,570)
------------ ------------
l stockholders' equity 10,415,502 9,264,056
------------ ------------
Total liabilities and stockholders' equity $ 13,947,782 $ 13,469,516
============ ============
</TABLE>
See accompanying notes.
3
<PAGE>
<TABLE>
American Locker Group Incorporated and Subsidiaries
Consolidated Statements of Income
<CAPTION>
THREE MONTHS ENDED MARCH 31,
1999 1998
------------- --------------
<S> <C> <C>
Net sales $ 7,857,688 $ 9,789,657
Cost of products sold 5,533,975 6,743,057
------------- --------------
2,323,713 3,046,600
Selling, administrative and general expenses 1,381,526 1,492,741
------------- --------------
942,187 1,553,859
Interest income 13,053 16,838
Other (expense) income--net 66,800 64,863
Interest expense (26,122) (66,668)
------------- --------------
Income before income taxes 995,913 1,568,892
Income taxes 404,111 638,996
------------- --------------
Net Income $ 591,807 $ 929,896
============= ==============
Earnings per share of common stock:
Basic 0.24 $ 0.38
============= ==============
Diluted 0.23 0.37
============= ==============
Dividends per share of common stock: $ 0.00 $ 0.00
============= ==============
</TABLE>
See accompanying notes.
4
<PAGE>
<TABLE>
American Locker Group Incorporated and Subsidiaries
Consolidated Statements of Cash Flows
<CAPTION>
THREE MONTHS ENDED MARCH 31,
1999 1998
------------ ------------
<S> <C> <C>
Operating activities
Net Income $ 591,807 $ 929,896
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 112,228 170,560
Gain on disposition of property, plant and
equipment (202) 0
Pension and other benefits 51,057 0
Change in assets and liabilities:
Accounts and notes receivable 168,506 (470,633)
Inventories 81,163 (688,226)
Prepaid expenses 41,818 (33,518)
Accounts payable and accrued expenses (674,227) 917,975
Income taxes (288,941) 0
------------ ------------
Net cash provided by operating activities 83,209 826,054
INVESTING ACTIVITIES
Purchase of property, plant and equipment (100,361) (19,394)
------------ ------------
Net cash used in investing activities (100,361) (19,394)
FINANCING ACTIVITIES
Net repayment under line of credit 0 (850,000)
Debt repayment (50,010) (165,750)
Common stock issued 54,625 13,813
------------ ------------
Net cash provided by (used in) financing
activities 4,615 (1,001,937)
Effect of exchange rate changes on cash 20,014 5,925
------------ ------------
Net increase (decrease) in cash 7,477 (189,352)
Cash and cash equivalents at beginning of period 1,188,007 1,154,045
------------ -----------
Cash and cash equivalents at end of period $ 1,195,484 $ 964,693
============ =============
Supplemental cash flow information:
Cash paid during the period for:
Interest $ 21,881 $ 66,658
$
============ =============
Income Taxes $ 758,000 325,092
============ =============
</TABLE>
See accompanying notes.
5
<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 generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q.
Accordingly, the condensed financial statements do not include all of the
information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of the Company's
management, all adjustments, consisting of normal recurring accruals,
considered necessary for a fair presentation of such condensed financial
statements have been included. Operating results for the three month period
ended March 31, 1999 are not necessarily indicative of the results that may
be expected for the year ended December 31, 1999.
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. Basic and diluted weighted average shares
outstanding were 2,463,216 (2,415,748 in 1998) and 2,545,823 (2,534,764 in
1998) respectively at March 31, 1999.
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>
MARCH 31, December 31,
1999 1998
---------- ------------
<S> <C> <C>
Raw materials $2,169,818 $1,763,210
Work-in-process 1,726,406 2,023,542
Finished goods 2,795,253 2,985,888
---------- ----------
$6,691,477 $6,772,640
Less allowance to
reduce carrying
value to LIFO
basis 460,509 460,509
---------- ----------
$6,230,968 $6,312,131
========== ==========
</TABLE>
5. Total comprehensive income consisting of net income and foreign currency
translation adjustment was $611,821 and $935,821 for the three months ended
March 31, 1999 and March 31, 1998 respectively.
6
<PAGE>
Item 2. Management Discussion and Analysis of Financial Condition and Results
of Operations
American Locker Group Incorporated and Subsidiaries
FIRST THREE MONTHS 1999 VS FIRST THREE MONTHS 1998
First quarter 1999 sales were $7,857,688 compared to $9,789,657 in the first
quarter of 1998. This was a decrease of $1,931,969 or 19.7%. Plastic locker
sales to the United States Postal Service (USPS) in the first quarter were
$5,401,781 compared to $6,705,999 during the same period in 1998. Cluster Box
Units (CBUs) accounted for $5,007,972 of this year's first quarter plastic
locker sales versus $6,133,693 the same period in 1998. Sales of Outdoor Parcel
Lockers (OPLs) were $393,809 compared to $572,306 in the first quarter of 1998,
a decline of $178,497 or 31.2%. This decline was anticipated and previously
disclosed as all three model CBUs have built-in parcel compartments. Sales of
metal, mechanical and electronic lockers were $2,455,907 in the first quarter
this year, a decrease of $627,751 or 20.4% over last year's $3,083,658.
The decline in sales of CBUs relates to fewer units in total purchased by the
USPS compared to last year's first quarter and also to lower selling prices per
unit. The Company has maintained its dominant market share position and USPS
procurement policy continues to limit purchase of NDCBUs (the steel predecessor
to plastic or aluminum CBUs) in relation to the new CBUs. However, USPS
accumulation of CBU inventories in the third quarter of 1998 and USPS operating
losses associated with deferring a postal rate increase for six months resulted
in lower CBU purchases in the fourth quarter of 1998 and first quarter of 1999.
Based on current information available to the Company, the Company believes that
the long term outlook for CBU volumes remains favorable in light of continued
USPS commitment to the CBU and its operating cost reduction benefits. Also, the
USPS has announced that effective September 15, 1999 it will discontinue
purchase of NDCBUs and decertify the unit for further installations. Therefore,
total CBU volumes are expected to be positively effected by replacement of older
NDCBU installations.
As previously reported, the USPS has extended the Company's national contract
through April 14, 2000. Terms of the extension were finalized on April 14, 1999
and set prices and minimum quantities for the period through April 14, 2000. The
Company lowered prices on CBUs by approximately one-third of one percent
(0.33%). The contract minimum quantity is one and is solely a legal minimum, not
indicative of USPS requirements. As previously disclosed, total CBU demand is
influenced by a number of factors over which the Company has no control,
including but not limited to: Postal budgets, policies, financial performance,
domestic new housing starts, and the weather as these units are installed
outdoors. The CBU is a modernization of the NDCBU (which the USPS has purchased
for 20 years) and is an integral part of the USPS delivery cost reduction
program identified as Centralized Delivery.
The two CBU competitors, each with an aluminum CBU, also received one-year
contract extensions. The Company has maintained its dominant market share
position and believes our CBU prices are competitive. The Company believes its
CBU product line continues to represent the best value when all factors,
including price, quality of design and construction, long term
7
<PAGE>
durability and service are considered.
Consolidated costs of products sold as a percentage of sales was 70.4% during
the first quarter of 1999 compared to 68.9% in the first quarter of 1998.
Decreased gross margins are directly related to decreased sales volumes and
previous price concessions, as partially offset by cost reduction efforts of the
Company.
Selling, general and administrative costs for the first quarter of 1999 compared
to the same period in 1998 ($1,381,526 - 1999; $1,492,741 - 1998), decreased
7.5%. Selling, general and administrative costs represented 17.6% of sales in
the first quarter of 1999, up from 15.2% of sales for the same period in 1998.
Interest income was $13,053 in the first quarter of 1999 compared to $16,838
in the first quarter of 1998.
Interest expense of $26,122 in the first quarter of 1999 decreased $40,546 from
1998 due to a decrease in the balance outstanding under the Company's term loan
agreements.
LIQUIDITY AND SOURCES OF CAPITAL
The Company continues to have adequate resources and liquidity to maintain and
expand its operations. Working capital at March 31, 1999 was $10,281,229, up
$1,164,158 over working capital of $9,117,071 at December 31, 1998. The ratio of
current assets to current liabilities was 5.24 to 1 at March 31, 1999, as
compared to a ratio of 3.94 to 1 at December 1998. Cash provided by operations
was $83,209 during the first three months of 1999, compared to $826,054 provided
by operating activities for the same period in 1998. 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.
YEAR 2000 PROJECT UPDATE
The Year 2000 (Y2K) issue relates to the fact that many computers, computer
programs, and embedded microchips support only two digits to specify a year in
the date field. Therefore, if not corrected, these systems may fail or create
erroneous results in dealing with matters which refer to dates after December
31, 1999. The Company is aware of the issues and has actively pursued corrective
action since late 1996. Following is a project status update as of March 31,
1999.
A. Assessment
Assessment of the Company's Information Technology (IT) systems was completed
in 1997. Based on results of the assessment, the Company determined that
complete replacement of its IT system was the best course of action.
Assessment of the Company's non-IT systems with embedded microchips (security
systems, telephones, etc.) began in the first quarter of 1998 and is now
complete. No systems required renovation and none are critical to the
Company's production process.
8
<PAGE>
B. Renovation
Renovation by replacement of the Company's IT system is proceeding on
schedule. New IT software that is certified Y2K compliant has been purchased,
installed, and modeled using actual Company data. The new IT system is
running on a new Novell network of personal computers that is also certified
Y2K compliant.
Total project expenditures through March 31, 1999 were $180,000 for hardware,
software, and implementation consulting fees. This represents over 70% of the
total projected project cost.
C. Validation
Validation and final testing of the new IT system has commenced with
full-scale Company data starting January 1, 1999 and is currently 80%
complete.
D. Implementation
Final implementation of the new IT system is scheduled for the second quarter
1999, depending on validation results. However, our current IT system will
run parallel until the new system is completely validated.
E. Third Party Assessment
The Company surveyed its entire vendor base during the third quarter of 1998.
Final results were compiled during the fourth quarter 1998. The Company has
verified that its major vendors are working towards Y2K compliance and that
reasonable contingency plans are in place to allow the Company's production
of its products to continue. Also, the Company as normal policy, maintains
adequate inventory of all but the most expensive components (those supplied
by vendors noted above) to safeguard against short term interruptions. The
Company has also built and will maintain a large inventory of completed CBUs
in order to ensure on-time deliveries to the USPS in spite of any Y2K related
interruptions in production. No single customer's failure to address the Y2K
issue, other than the United States Postal Service (USPS), would have a
material effect on the Company.
Worst Case Risks and Contingency Plans
In 1998, the Company's contract with the United States Postal Service (USPS)
accounted for over 70% of the Company's revenues. Any interruption or slowing of
USPS orders or payments as a result of Y2K related issues would have a material
adverse effect on the Company's results of operations, liquidity, and/or
financial condition. However, through communication with the USPS and assessment
of USPS representations related to their Y2K project status, the Company does
not anticipate Y2K related interruptions in USPS orders or payments.
In the event that a Y2K related slowdown or stoppage in USPS orders does occur,
the Company has a contingency plan whereby CBU inventory levels would be reduced
and orders for incoming materials would be delayed or cancelled in order to free
working cash. The Company's $3,000,000 line of credit, as well as other
financial instruments, may be utilized if necessary.
9
<PAGE>
The forward looking statements contained in the Year 2000 Project Update should
be read in conjunction with the Company's disclosures under the heading "Safe
Harbor Statement under the Private Securities Litigation Reform Act of 1995."
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 Matters
In September 1998 and subsequent months, the Company was named as an additional
defendant in 32 cases pending in state court in Massachusetts. The plaintiffs in
each such case assert that the Company manufactured and furnished to various
shipyards components containing asbestos during the period from 1948 to 1972 and
that injuries resulted from exposure to such products. The assets of this
division were sold by the Company in 1973. Based upon investigations conducted
by the Company to date, the Company has discovered no evidence that the former
division manufactured or supplied any products containing asbestos. Therefore,
barring the discovery of contrary evidence, the Company does not anticipate that
these actions will have any substantial impact on the Company's operations or
financial condition. Defense of these cases has been assumed by the Company's
insurance carrier, subject to a customary reservation of rights
In December 1998, the Company was named as a defendant in a lawsuit titled
"ROBERTA RAIPORT, ET AL. V. GOWANDA ELECTRONICS CORP. AND AMERICAN LOCKER GROUP,
INC." pending in the State of New York Supreme Court, County of Cattaragus. The
suit involves property located in Gowanda, New York which was sold by the
Company to Gowanda Electronics Corp. prior to 1980. The plaintiffs, current or
former property owners in Gowanda, New York, assert that defendants each
operated machine shops at the site during their respective periods of ownership
and that as a result of such operation soil and groundwater contamination
occurred which has adversely affected the plaintiffs and the value of
plaintiffs' properties. The plaintiffs assert a number of causes of action and
seek compensatory damages of $5,000,000 related to alleged diminution of
property values, $3,000,000 for economic losses and "disruption to plaintiffs'
lives," $10,000,000 for "nuisance, inconveniences and disruption to plaintiffs'
lives," $25,000,000 in punitive damages, and $15,000,000 to establish a "trust
account" for monitoring indoor air quality and other remedies." The Company
believes that its potential liability with respect to this site, if any, is
diminimus. Therefore, based on the information currently available, management
does not believe the outcome of this suit will have a substantial impact on the
Company's operations or financial condition. Defense of this case has been
assumed by the Company's insurance carrier, subject to a customary reservation
of rights.
10
<PAGE>
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit 10 Material Contracts U.S. Postal Service Contract
Modification #M010 to #072368-96-B-0741, dated April 14, 1999.
(b) Exhibit 27.1 Financial Data Schedule dated March 31, 1999.
(c) Exhibit 27.2 Financial Data Schedule dated March 31, 1998
(Restated).
(d) The Company did not file any reports on Form 8-K during the
three months ended March 31, 1999.
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/Edward F. Ruttenberg
----------------------------------
Edward F. Ruttenberg
Chairman and Chief Executive Officer
Date: May 6, 1999
12
<PAGE>
EXHIBIT 10
U. S. POSTAL SERVICE: CONTRACT/ORDER MODIFICATION
1. MODIFICATION NO.:M010 TO CONTRACT/ORDER NO.: 072368-96-B-0741
2 a. DATE ISSUED: 04/15/99 b. REQUEST NO.: 99-02580
c. FINANCE NO: 072368 SSN/TIN: 16-1068506
3. CONTRACTOR: 4. ISSUED BY:
ROY GLOSSER U S POSTAL SERVICE
AMERICAN LOCKER SECURITY PURCHASING & MATLS SERVICE CENTER
PO BOX 489 3300 S PARKER RD SUITE 400
JAMESTOWN NY 14702-0489 AURORA CO 80014-3500
(800) 828-9118 FOR INFORMATION CALL:
Patricia D. Kain
303/369-1248
[email protected]
ACO CODE: 072368
The above number contract/order is modified as set forth in Block 6, by
supplement agreement entered into pursuant to authority of the Contracting
Officer. The contractor is required to sign and return one copy of this
modification to the Issuing Office.
6. DESCRIPTION OF MODIFICATION:
REFERENCE: NATIONAL CONTRACTS - CENTRAL DELIVERY EQUIPMENT
1. This contract is extended for a one year term from 04/15/99 through
04/14/2000.
2. New Pricing, as listed on Page 2, is effective 04/15/1999.
3. The following items are deleted from the contract effective 09/11/1999:
Item 04, NDCBU Type I
Item 05, NDCBU Type II
Item 06, NDCBU Type III
Item 08a, NDCBU Pedestal
Except as provided herein, all terms and conditions of the document
referenced in Block 1, as heretofore changed, remain unchanged and in full
force and effect.
7. ACCOUNTS PAYABLE DATA X is not , is changed, see
--- ---
Previous Grand Total:
Value of Modification:
New Grand Total:
The supplier X is not is required to sign and return an original and
--- --- ---
copy(ies) of this modification to the issuing Office (See Block 4).
8. SIGNATURES: SUPPLIER U.S. POSTAL SERVICE
/s/ Roy J. Glosser 4/14/98 /s/ Patricia D. Kain 4/14/98
--------------------------------------- --------------------------------
Signature Date Signature Date
Roy J. Glosser Patricia D. Kain
--------------------------------------- --------------------------------
Name of Person Authorized to Sign Title Contracting Officer
<PAGE>
CONTRACT/ORDER MODIFICATION DESCRIPTION - Continuation Page 2 of 2 Pages
1. MODIFICATION NO.: 010 CONTRACT/ORDER/AGREEMENT: 072368-96-B-0741
3. DESCRIPTION OF MODIFICATION
NEW PRICING EFFECTIVE 04/15/1999
ITEM 01: CBU TYPE I $861.00
ITEM 02: CBU TYPE II $892.00
ITEM 03: CBU TYPE III $923.00
ITEM 07: OPL $244.00
PRICING FOR THE FOLLOWING ITEMS REMAINS THE SAME:
ITEM 08: REPLACEMENT PEDESTALS
ITEM 08b: OPL $ 75.00
ITEM 08c: CBU TYPE I $110.00
CBU TYPE II $150.00
CBU TYPE III $110.00
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Exhibit 27.1
American Locker Group Incorporated
Financial Data Schedule
March 31, 1999
</LEGEND>
<CIK> 0000008855
<NAME> AMERICAN LOCKER GROUP INCORPORATED
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> DEC-31-1998
<PERIOD-END> MAR-31-1999
<EXCHANGE-RATE> 1.0000
<CASH> 1,195,484
<SECURITIES> 0
<RECEIVABLES> 3,894,296
<ALLOWANCES> 219,136
<INVENTORY> 6,230,968
<CURRENT-ASSETS> 12,705,156
<PP&E> 8,923,967
<DEPRECIATION> 7,818,986
<TOTAL-ASSETS> 13,947,782
<CURRENT-LIABILITIES> 2,423,927
<BONDS> 483,323
0
0
<COMMON> 2,498,772
<OTHER-SE> 7,916,730
<TOTAL-LIABILITY-AND-EQUITY> 13,947,782
<SALES> 7,857,688
<TOTAL-REVENUES> 7,937,541
<CGS> 5,533,975
<TOTAL-COSTS> 5,533,975
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 26,122
<INCOME-PRETAX> 995,913
<INCOME-TAX> 404,111
<INCOME-CONTINUING> 591,807
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 591,807
<EPS-PRIMARY> .24
<EPS-DILUTED> .23
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Exhibit 27.2
American Locker Group Incorporated
Financial Data Schedule
March 31, 1998
(Restated)
</LEGEND>
<CIK> 0000008855
<NAME> AMERICAN LOCKER GROUP INCORPORATED
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> DEC-31-1997
<PERIOD-END> MAR-31-1998
<EXCHANGE-RATE> 1.0000
<CASH> 964,693
<SECURITIES> 0
<RECEIVABLES> 4,990,343
<ALLOWANCES> 427,187
<INVENTORY> 4,324,754
<CURRENT-ASSETS> 11,012,340
<PP&E> 8,544,104
<DEPRECIATION> 7,445,982
<TOTAL-ASSETS> 12,115,584
<CURRENT-LIABILITIES> 3,519,195
<BONDS> 2,265,250
0
0
<COMMON> 2,415,748
<OTHER-SE> 3,453,031
<TOTAL-LIABILITY-AND-EQUITY> 12,115,584
<SALES> 9,789,657
<TOTAL-REVENUES> 9,871,358
<CGS> 6,743,057
<TOTAL-COSTS> 6,743,057
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 66,668
<INCOME-PRETAX> 1,568,892
<INCOME-TAX> 638,996
<INCOME-CONTINUING> 929,896
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 929,896
<EPS-PRIMARY> .38
<EPS-DILUTED> .37
</TABLE>
