SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER
SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For Quarterly Period Ended March 31, 2000
Commission File Number 0-2098
HAHN AUTOMOTIVE WAREHOUSE, INC.
(Exact name of Registrant as specified in its charter)
NEW YORK 16-0467030
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
415 West Main Street Rochester, New York 14608
(Address of principal executive offices) (Zip Code)
(716)235-1595
(Registrant's telephone number, including area code)
<PAGE 1>
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
YES X NO
Number of shares outstanding of the registrant's common stock,
par value $.01 per share, on May 12, 2000; 4,745,014.
HAHN AUTOMOTIVE WAREHOUSE, INC.
Index
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets -
March 31, 2000 and September 30, 1999
Condensed Consolidated Statements of Operations -
for the six months and three months ended March 31,
2000 and March 31, 1999
Condensed Consolidated Statements of Cash Flows -
for the six months ended March 31, 2000 and
March 31, 1999
Condensed Consolidated Statements of Comprehensive
Income - for the six months and three months ended
March 31, 2000 and March 31, 1999
Notes to Condensed Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
<PAGE 2>
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other
Item 6. Exhibits and Reports on Form 8-K
SIGNATURES
<TABLE>
HAHN AUTOMOTIVE WAREHOUSE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, except share data)
<CAPTION>
ASSETS 3/31/00 9/30/99
(Unaudited
)
<S> <C> <C>
Current Assets:
Cash $78 $81
Marketable Securities 725 685
Trade Accounts Receivable (Net of
Allowance for Doubtful Accounts) 16,766 17,577
Inventory 42,567 44,501
Other Current Assets 3,063 3,009
Total Current Assets 63,199 65,853
Property, Equipment, and Leasehold
Improvements, net 6,329 6,892
Other Assets 6,977 6,978
$76,505 $79,723
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current portion of long-term debt
and capital lease obligations $1,322 $1,541
Accounts payable 11,928 12,377
Compensation related liabilities 1,428 1,673
Discontinued Operations 214 604
Other accrued expenses 3,671 4,271
Total Current Liabilities 18,563 20,466
Obligations Under Credit Facility 35,832 36,611
Notes Payable-Officers and
Affiliates 1,720 1,736
Long-Term Debt 1,579 1,704
Capital Lease Obligations 2,996 3,196
Other Liabilities 2,150 2,237
Total Liabilities 62,840 65,950
Shareholders' Equity:
Common stock (par value $.01 per
share; authorized 20,000,000
shares; issued and outstanding
4,745,014) 47 47
Additional Paid-in Capital 25,975 25,975
Retained Earnings (12,473) (12,339)
Accumulated Other Comprehensive
Income 116 90
Total Shareholders' Equity 13,665 13,773
$76,505 $79,723
</TABLE>
<PAGE 3>
<TABLE>
HAHN AUTOMOTIVE WAREHOUSE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, except for share and per share data)
(Unaudited)
<CAPTION>
For the 6
Months Ended
March 31, March 31,
2000 1999
<S> <C> <C>
Net sales $60,425 $62,216
Cost of Products Sold 37,129 38,917
Gross Profit 23,296 23,299
Selling, General and
Administrative Expense 20,876 21,384
Depreciation and Amortization 895 807
Operating Income 1,525 1,108
Interest Expense (1,920) (1,805)
Interest and Service Charge
Income 179 156
Income (Loss) Before Taxes (216) (541)
Income Taxes (Refundable) (82) (206)
Net Income (Loss) ($134) ($335)
Basic and Diluted Earnings Per
Share:
Net Income (Loss) ($0.03) ($0.07)
Basic and Diluted Weighted
Average Number of Shares 4,745,014 4,745,014
HAHN AUTOMOTIVE WAREHOUSE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, except for share and per share data
(Unaudited)
<CAPTION>
For the 3
Months Ended
March 31, March 31,
2000 1999
<S> <C> <C>
Net sales $30,927 $32,347
Cost of Products Sold 19,065 20,433
Gross Profit 11,862 11,914
Selling, General and
Administrative Expense 10,433 10,801
Depreciation and Amortization 430 419
Operating Income 999 694
Interest Expense (979) (885)
Interest and Service Charge
Income 77 83
Income (Loss) Before Taxes 97 (108)
Income Taxes (Refundable) 38 (41)
Net Income (Loss) $59 ($67)
Basic and Diluted Earnings Per
Share:
Net Income (Loss) $0.01 ($0.01)
Basic and Diluted Weighted
Average Number of Shares 4,745,014 4,745,014
</TABLE>
<PAGE 4>
<TABLE>
HAHN AUTOMOTIVE WAREHOUSE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(In Thousands)
(Unaudited)
<CAPTION>
6 Mo. Ended 6 Mo. Ended
3/31/00 3/31/99
<S> <C> <C>
Cash flows from operating
activities:
Net income (Loss) ($134) ($335)
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and amortization 895 807
Provision for doubtful
accounts and notes 273 314
Change in assets and liabilities:
Trade receivables 538 (356)
Inventory 1,934 (175)
Other assets (223) 56
Accounts payable and other
accrued expenses (1,785) 383
Net cash provided by
operating activities 1,498 694
Cash flows from investing
activities:
Additions to property, equip.
and leasehold improvements, net (162) (292)
Net cash used in investing
activities (162) (292)
Cash flows from financing
activities:
Net borrowings under (payment
of) line of credit (781) (446)
Proceeds from long-term debt
and demand notes 0 182
Payments of long-term debt and
demand notes (296) (115)
Payment of notes payable-
officers and affiliates (80) (73)
Payment of capital lease
obligations (182) (165)
Net cash used in
financing activities (1,339) (617)
Net increase (decrease) in cash (3) (215)
Cash at beginning of year 81 329
Cash at end of period 78 114
Supplemental disclosures of cash
flow information
Cash paid during the quarter
for:
Interest $1,740 $1,630
Income taxes paid $26 $12
</TABLE>
<PAGE 5>
HAHN AUTOMOTIVE WAREHOUSE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Thousands)
(Unaudited)
For the Six Months For the Three Months
ended March 31 ended March 31
2000 1999 2000 1999
Net Income (Loss) ($134) ($335) $59 ($67)
Unrealized Gain (Loss)
on Marketable Securities,
Net of Tax $26 ($43) $46 ($26)
Comprehensive Net Income
(Loss) ($108) ($378) $105 ($93)
<PAGE 6>
HAHN AUTOMOTIVE WAREHOUSE, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Summary of Significant Accounting Policies
Basis of Presentation
The condensed interim consolidated financial statements included
herein have been prepared by the Company, without audit, pursuant
to the rules and regulations of the Securities and Exchange
Commission. The interim financial statements reflect all
adjustments which are, in the opinion of management, necessary to
fairly present such information. Although the Company believes
that the disclosures included on the face of the interim
consolidated financial statements and in the footnotes herein are
adequate to make the information presented not misleading,
certain information and footnote disclosures, including
significant accounting policies, normally included in financial
statements prepared in accordance with generally accepted
accounting principles, have been condensed or omitted pursuant to
such rules and regulations. It is suggested that all condensed
consolidated financial statements contained herein be read in
conjunction with the financial statements and the notes thereto
included in the Company's Annual Report for the fiscal year ended
September 30, 1999, on Form 10-K, filed with the Securities and
Exchange Commission, Washington, D.C. 20549. This information may
be obtained through the web site of the Securities and Exchange
Commission, EDGAR Filing section, at http://www.sec.gov.
Operating results for the six month period ended March 31, 2000
are not necessarily indicative of the results that may be
expected for the entire fiscal year.
2. Earnings Per Share
The Company presents earnings per share ("EPS") in accordance
with Statement of Financial Accounting Standards ("SFAS") No.
128, "Earnings per Share". SFAS No. 128 requires dual
presentation of basic EPS and diluted EPS on the face of the
statements of operations. Basic EPS is computed using net income
(loss) divided by the weighted-average number of common shares
outstanding for the period. Diluted EPS reflects the potential
dilution that could occur from common shares issuable through
stock-based compensation including stock options.
<PAGE 7>
BASIC AND DILUTED EARNINGS PER SHARE
Six Months Three Months
Ended March 31 Ended March 31
2000 1999 2000 1999
Basic and Diluted
Shares Outstanding:
Weighted average number of shares
outstanding 4,745,014 4,745,014 4,745,014 4,745,014
Net income (loss) ($134) ($335) $59 ($67)
Basic and Diluted EPS ($.03) ($.07) $.01 ($.01)
The exercise of outstanding stock options has not been included
in the calculation of diluted EPS since the effect would be
antidilutive because all outstanding options were out of the
money as of March 31, 2000.
3. Debt (in thousands)
Long-term debt consists of the following:
3/31/00 9/30/99
Credit Facility Agreement 36,332 37,113
Notes Payable-Officers and Affiliates 1,763 1,843
Other Long-term Debt 1,968 2,264
Less Current Maturities (932) (1,169)
$39,131 $40,051
The Company is subject to a Credit Facility Agreement that
expires on October 22, 2002 and provides a revolving credit note,
subject to a borrowing base, up to a maximum of $50.0 million.
Borrowings under the Credit Facility Agreement bear interest at
an annual rate equal to, at the Company's option, either (a)
LIBOR plus 1.75% to 2.5%, dependent upon the Company's financial
performance, or (b) the bank prime rate plus 0% to .75%,
dependent upon the Company's financial performance. LIBOR and
prime were 6.2% and 9.0%, respectively, at March 31, 2000. The
unused portion of the Credit Facility bears interest at an annual
rate of .25% to .375%.
As of May 12, 2000, the Company had an outstanding balance of
$36.0 million under the Credit Facility.
<PAGE 8>
The Credit Facility is collateralized by substantially all of the
Company's assets and contains covenants and restrictions,
including limitations on indebtedness, liens, leases, mergers and
sales of assets, investments, dividends, stock purchases and
other payments in accordance with capital stock and cash flow
coverage requirements. Restrictive covenants include maintenance
of a minimum tangible net worth and a minimum fixed charge
coverage ratio. The Company was in compliance with all
covenants, as amended, at March 31, 2000.
The Company has outstanding promissory notes ("Notes") with the
estate of the former Chairman of the Board of Directors and with
the President and Chief Executive Officer of the Company, in the
original aggregate amount of $2,150,000. The Notes, which are
due in October, 2003, bear interest which is payable monthly, at
the annual rate of 12%. The Company is also subject to a number
of other debt agreements, including a mortgage, which comprise
the balance of the long-term debt.
HAHN AUTOMOTIVE WAREHOUSE, INC.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
The discussions set forth in this form 10-Q may contain forward-
looking comments. Such comments are based upon the information
currently available to the management of the Company and
management's perception thereof as of the date of this report.
Actual results of the Company's operations could materially
differ from those indicated in the forward-looking comments. The
difference could be caused by a number of factors including, but
not limited to, those discussed under the heading "Important
Information Regarding Forward-Looking Statements" in the
Company's Annual Report on Form 10-K, for the fiscal year ended
September 30, 1999, which has been filed with the United States
Securities and Exchange Commission (the "Commission"). That
Annual Report may be obtained by contacting the Commission's
public reference operations or through the worldwide web site at
http://www.sec.gov, EDGAR Filing section. Readers are strongly
encouraged to obtain and consider the factors listed in the 1999
Annual Report and any amendments or modifications thereof when
evaluating any forward-looking comments concerning the Company.
Results of Operations - three months ended March 31, 2000 compared
to three months ended March 31, 1999.
<PAGE 9>
The Company's net sales declined $1.4 million, or 4.4%, to $30.9
million, for the fiscal quarter ended March 31, 2000, from $32.3
million, for the same fiscal quarter last year. A major
factor causing the net sales decline was the general softness in
the auto parts aftermarket caused by various factors, which include
improved vehicle manufacturing and performance, longer vehicle
warranties, leased vehicles and increased competition in all
segments of distribution. Another factor causing the decline in
net sales was the closing of three underperforming Advantage Auto
Stores and one Direct Distribution Center. For the quarter, on a
comparable location basis, and in comparison to the same quarter
last year, net sales decreased by 8.2% at the full service
Distribution Centers, while the Advantage Auto Stores and the
Direct Distribution Centers had increases of 4.0% and 4.3%,
respectively.
Gross profit for the current quarter decreased $52,000 as
compared to the second quarter of fiscal 1999. This decline
resulted from a decrease in net sales which was partially offset
by an increase in gross profit margin. Gross profit expressed as
a percentage of net sales increased to 38.4% from 36.8%. This is
primarily due to the increase in the net sales at the Advantage
Auto Stores as a percentage of total Company net sales and a
focused effort to sell slow moving product at a higher margin.
Selling, general and administrative expense decreased $368,000
from $10.8 million in the second quarter of fiscal 1999, to $10.4
million, for the comparable quarter of fiscal 2000. This is
primarily due to the Company's efforts to control and reduce
expenses. As a percentage of net sales, selling, general and
administrative expense increased to 33.7% from 33.4%. The
percentage increase is a result of the net sales decline.
As a result of the factors discussed above, operating income
increased to $999,000 for the second quarter of fiscal 2000, from
$694,000, for the second quarter of fiscal 1999. As a percentage
of net sales, operating income increased to 3.2% from 2.1% in the
same three month period of fiscal 1999.
Depreciation and amortization increased $11,000 from $419,000
during the corresponding quarter last year, to $430,000 during
the second quarter of the current fiscal year. This increase is
attributable to the purchase of computer equipment at the
expiration of their lease and was partially offset by certain
assets becoming fully depreciated.
Interest expense increased $94,000 to $979,000 from $885,000 for
the same quarter of the previous fiscal year. This increase is
primarily the result of increased interest rates.
<PAGE 10>
As a result of the factors discussed above, the Company had a net
profit of $59,000 in the current fiscal year's second quarter,
compared to a net loss of $67,000 for the same quarter of the
previous fiscal year.
Results of Operations - six months ended March 31, 2000 compared
to six months ended March 31, 1999.
The Company's net sales decreased $1.8 million or 2.9%, from
$62.2 million for the six months ended March 31, 1999, to $60.4
million for the corresponding six months of fiscal 2000. A major
factor causing the net sales decline was the general softness in
the auto parts aftermarket caused by various factors, which
include improved vehicle manufacturing and performance, longer
vehicle warranties, leased vehicles and increased competition in
all segments of distribution. During this six month period the
Company closed three underperforming Advantage Auto Stores and
one Direct Distribution Center. On a comparable location basis,
for the same period during the previous fiscal year, net sales
declined by 7.0% at the Distribution Centers, while increasing
4.4% at the Advantage Auto Stores and 6.6% at the Direct
Distribution Centers.
Despite the decline in net sales, gross profit dollars for the
first six months of the current fiscal year remained even with
the same period of the previous fiscal year at $23.3 million.
This was due to an increase in gross profit margin. As a
percentage of net sales, gross profit increased to 38.6% from
37.4% for the previous year. This percentage increase is
primarily due to the increase in Advantage Stores net sales as a
percentage of total Company net sales and a focused effort to
sell slow moving product at a higher margin.
Selling, general and administrative expense declined $508,000,
from $21.4 million for the first six months of fiscal 1999, to
$20.9 million, in the same period of fiscal 2000. This decline
is primarily due to the Company's efforts to control and reduce
expenses. As a percentage of net sales, selling, general and
administrative expense increased to 34.5% from 34.4% in the
previous fiscal year. This percentage increase was due to a
decline in net sales as discussed above.
Depreciation and amortization increased $88,000 from $807,000 in
fiscal 1999 compared to $895,000 for the same period in the
current fiscal year. This increase is primarily the result of
the purchase of computers at the end of their lease in the fourth
quarter of fiscal year 1999.
<PAGE 11>
As a result of the factors discussed above, operating income
increased to $1.5 million for the first six months of fiscal 2000
from $1.1 million for the first six months of fiscal 1999. As a
percentage of net sales, operating income increased to 2.5% from
1.8% in the same six month period of fiscal 1999.
Interest expense increased $115,000, in the first six months of
fiscal 2000, to $1.9 million. This increase is primarily
attributable to increased interest rates.
As a result of these factors, the Company reported a net loss of
$134,000, or $.03 per share for the six month period ended March
31, 2000, compared to a net loss of $335,000 or $.07 per share
for the first six months of fiscal 1999.
LIQUIDITY AND CAPITAL RESOURCES
During the first six months of fiscal 2000, operations provided
net cash of $1,498,000. This is largely due to a decrease in
inventory of $1,934,000 and trade accounts receivable of
$538,000, plus a non-cash item of depreciation and amortization
of $895,000. These were partially offset by a decrease in
accounts payables and other accrued expenses of $1,808,000.
Investing activities consist mainly of routine replacement of
computer equipment and leasehold improvements. Capital
expenditures were $162,000 during the first six months of fiscal
2000 compared to $292,000 during the same period of the previous
fiscal year. The Company anticipates making capital
expenditures of approximately $250,000 during the remainder of
the current fiscal year.
Financing activities during the six months of fiscal 2000
consumed $1,339,000 of cash. This is primarily due to decreased
net borrowings under the Company's credit facility and payments
on long-term debt. As of May 12, 2000 the Company had $2.3
million available under its revolving credit facility.
In the future, the Company expects to make minor strategic
acquisitions of jobbing stores to the extent that its debt
service and other funding requirements permit. The Company's
ability to open new distribution centers will depend on its
ability to negotiate extended payment terms with vendors, which
initially minimizes additional working capital requirements. The
Company believes that it will be able to continue to obtain such
financing.
<PAGE 12>
The Company's principal sources of liquidity for its operational
requirements are internally generated funds, borrowings under its
revolving credit facility, leasing arrangements and extended
payment terms from vendors. In the absence of unforeseen
circumstances, the Company anticipates that these sources will
provide sufficient working capital to operate its business, make
expected capital expenditures and to meet its liquidity needs for
the next twelve months.
Year 2000
The Company has experienced no Year 2000 disruptions with
vendors, customers, or the Company's own software or hardware as
of May 12, 2000.
Seasonality
The Company's business is somewhat seasonal in nature, primarily
as a result of the impact of weather conditions on the demand for
automotive aftermarket products. Historically, the Company's net
sales and gross profits have been higher in the second half of
each fiscal year than in the first half.
Business Segment Information
Effective September 30, 1999, the Company adopted the provisions
of SFAS No. 131, "Disclosures about Segments of an Enterprise and
Related Information." This statement establishes annual and
interim reporting standards for an enterprise's operating
segments and related disclosures about its products, services,
geographic areas and major customers. Adoption of this statement
had no impact on the Company's consolidated financial position,
results of operations or cash flows. Comparative information for
earlier years has been restated. Restatement of comparative
information for interim periods in the initial year of adoption
is to be reported for interim periods in the second year of
application. The Company reports its operating results in two
segments: direct distribution and full service distribution.
Segment selection was based on internal organizational structure,
the way in which the operations are managed and their performance
evaluated by management and the Company's Board of Directors, the
availability of separate financial results and materiality
considerations. The accounting policies of the segments are the
same as those described in the summary of significant accounting
policies. The Company evaluates performance based on operating
profits of the respective business units.
<PAGE 13>
Information concerning the Company's Business Segments for the
six months of fiscal years 2000 and 1999, is as follows (dollars
in thousands):
2000 1999
Net Sales to Customers
Full Service Distribution $51,756 $53,294
Direct Distribution 8,669 8,922
Total Net Sales to Customers $60,425 $62,216
Operating Income
Full Service Distribution $1,551 $991
Direct Distribution (26) 117
Total Operating Profit $1,525 $1,108
Interest Expense (1,920) (1,805)
Other Income 179 156
Consolidated Loss Before taxes ($216) ($541)
Identifiable Assets
Full Service Distribution $70,397 $71,262
Direct Distribution 6,108 6,412
Total Identifiable Assets $76,505 $77,674
Capital Expenditures
Full Service Distribution $158 $285
Direct Distribution 4 7
Total Capital Expenditure $162 $292
Depreciation and Amortization
Full Service Distribution $815 $712
Direct Distribution 80 95
Total Depreciation and
Amortization $895 $807
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
(a) The Company held its Annual Meeting of Shareholders on
March 15, 2000.
(b) At said Annual Meeting of Shareholders the following
nominees were elected to the Board of Directors for a
term of two years ending in 2002:
<PAGE 14>
Eli N. Futerman
William A. Buckingham
Nathan Lewinger
Gordon E. Forth
The number of votes cast for the election of directors were as
follows:
Votes
Votes For Withheld
Eli N. Futerman 2,734,797 261,259
William A. Buckingham 2,734,797 261,259
Nathan Lewinger 2,734,797 261,259
Gordon E. Forth 2,734,797 261,259
There were no broker non-votes.
The terms of the following directors, expiring in 2001,
continued after the meeting:
Daniel J. Chessin
Stephen B. Ashley
E. Philip Saunders
Item 5. Other
The Company believes that iAutoparts.com is an innovative
approach to the auto parts aftermarket distribution model. It
will extend the Company's reach directly to the consumer,
entering new geographical and customer markets, and further
expand its distribution mix. As of March 31, 2000, more than
4,142 users registered vehicles on iAutoparts.com and the Web
site experienced in excess of 3.8 million page views ("hits")
since the inception of this site. iAutoparts.com is the first
online automotive parts store powered by the industry's leading
CCI/Triad ePartExpert electronic parts catalog. The Web site
guides users through a logical search to ensure accurate
automotive parts selection. ePartExpert provides technical tips,
parts specifications and suggestions for related parts.
iAutoparts.com offers more that two million nationally branded
automotive hard parts and maintenance items in inventory,
representing in excess of $42.6 million in automotive parts on
hand and available for immediate delivery. To date, iAutoparts
has had nominal sales.
<PAGE 15>
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
(b) Reports on Form 8-K
None
SIGNATURES
Pursuant to the requirements of the Securities and Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.
HAHN AUTOMOTIVE WAREHOUSE, INC.
(Registrant)
By: s//Eli N. Futerman
Eli N. Futerman
President and C.E.O.
By: s//Peter J. Adamski
Peter J. Adamski
Vice President - Finance and
Chief Financial Officer
Dated: May 12, 2000
<PAGE 16>
Exhibit 27
Selected financial information as required for Edgar
electronic filing for the six months ended March 31, 2000.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-END> MAR-31-2000
<CASH> 78
<SECURITIES> 725
<RECEIVABLES> 16,766
<ALLOWANCES> 0
<INVENTORY> 42,567
<CURRENT-ASSETS> 63,199
<PP&E> 6,329
<DEPRECIATION> 0
<TOTAL-ASSETS> 76,505
<CURRENT-LIABILITIES> 18,563
<BONDS> 0
0
0
<COMMON> 47
<OTHER-SE> 13,618
<TOTAL-LIABILITY-AND-EQUITY> 76,505
<SALES> 60,425
<TOTAL-REVENUES> 60,425
<CGS> 37,129
<TOTAL-COSTS> 21,771
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,920
<INCOME-PRETAX> (216)
<INCOME-TAX> (82)
<INCOME-CONTINUING> (134)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (134)
<EPS-BASIC> (.03)
<EPS-DILUTED> (.03)
</TABLE>
