<PAGE> 1
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 September 30, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from__________________to_______________________
Commission File Number 1-11442
CHART INDUSTRIES, INC.
------------------------------------------------------------------
(Exact Name of Registrant as Specified in its Charter)
Delaware 34-1712937
- --------------------------------------------------------------------------------
(State or Other Jurisdiction (I.R.S. Employer Identification No.)
of Incorporation or Organization)
5885 Landerbrook Drive, Suite 150, Mayfield Heights, Ohio 44124
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices) (ZIP Code)
Registrant's Telephone Number, Including Area Code: (440) 753-1490
Not Applicable
- --------------------------------------------------------------------------------
(Former Name, Former Address and Former Fiscal Year, if Changed
Since Last Report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or 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
--- ---
At September 30, 1998, there were 23,797,241 outstanding shares of the Company's
Common Stock, $0.01 par value per share.
Page 1 of 15 sequentially numbered pages.
<PAGE> 2
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
The information required by Rule 10-01 of Regulation S-X is
set forth on pages 3 through 8 of this Report on Form 10-Q.
2
<PAGE> 3
CHART INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except per share amounts)
<TABLE>
<CAPTION>
September 30, December 31,
1998 1997
------------------------------------
<S> <C> <C>
ASSETS
Current Assets
Cash and cash equivalents $1,996 $22,095
Accounts receivable 38,612 31,636
Inventories, net 30,664 25,617
Other current assets 5,743 5,501
----------------------------------
Total Current Assets 77,015 84,849
Property, plant & equipment, net 40,247 27,241
Goodwill, net 40,602 15,698
Other assets, net 1,231 1,131
----------------------------------
TOTAL ASSETS $159,095 $128,919
==================================
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $7,363 $8,911
Customer advances 18,319 13,710
Billings in excess of contract revenue 336 3,030
Accrued expenses and other liabilities 26,411 21,514
Current portion of long-term debt 539 558
----------------------------------
Total Current Liabilities 52,968 47,723
Long-term debt 16,003 4,195
Deferred income taxes 544 544
Shareholders' Equity
Preferred stock, 1,000,000 shares authorized, none
issued or outstanding
Common stock, par value $.01 per share -
30,000,000 shares authorized, 24,321,917 and 24,281,510 shares
issued at September 30, 1998 and December 31, 1997, respectively 243 162
Additional paid-in capital 42,695 42,787
Retained earnings 51,690 33,508
Treasury stock, at cost, 524,676 shares at
September 30, 1998 (5,048)
----------------------------------
89,580 76,457
----------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $159,095 $128,919
==================================
</TABLE>
The balance sheet at December 31, 1997 has been derived from the audited
financial statements at that date but does not include all of the information
and footnotes required by generally accepted accounting principles for
complete financial statements.
The accompanying notes are an integral part of these condensed consolidated
financial statements.
3
<PAGE> 4
CHART INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars and shares in thousands, except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
------------------------------- -------------------------------
<S> <C> <C> <C> <C>
Sales $57,823 $51,939 $170,957 $136,137
Cost of products sold 38,080 35,278 110,754 93,834
------------------------------- -------------------------------
Gross Profit 19,743 16,661 60,203 42,303
Selling, general & administrative expenses 9,237 7,356 25,826 19,068
------------------------------- -------------------------------
Operating Income 10,506 9,305 34,377 23,235
Interest expense - net 353 358 746 376
------------------------------- -------------------------------
Income Before Income Taxes 10,153 8,947 33,631 22,859
Income taxes 3,426 3,156 11,737 7,886
------------------------------- -------------------------------
Net Income $ 6,727 $5,791 $ 21,894 $14,973
=============================== ===============================
Net Income per Common Share $0.28 $0.27 $0.91 $0.69
=============================== ===============================
Net Income per Common Share --
assuming dilution $0.28 $0.26 $0.89 $0.67
=============================== ===============================
Shares used in per share calculations 24,087 21,654 24,189 21,753
Shares used in per share calculations --
assuming dilution 24,350 22,208 24,541 22,250
</TABLE>
The accompanying notes are an integral part of these condensed consolidated
financial statements.
4
<PAGE> 5
CHART INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(dollars in thousands)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------ ------------------------
1998 1997 1998 1997
------------------------ ------------------------
<S> <C> <C> <C> <C>
OPERATING ACTIVITIES
Net income $ 6,727 $ 5,791 $ 21,894 $ 14,973
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization 1,406 1,000 4,787 2,364
Contribution of stock to employee benefit plans 297 152 801 490
Increase (decrease) in cash resulting from changes
in operating assets and liabilities:
Accounts receivable (575) (5,496) 2,658 (1,567)
Inventory and other current assets (2,007) 3,313 (2,369) 3,208
Accounts payable and accrued liabilities 206 3,250 (4,148) (891)
Billings in excess of contract revenue and
customer advances 2,905 (519) (2,141) (6,977)
------------------------ ------------------------
Net Cash Provided By Operating Activities 8,959 7,491 21,482 11,600
INVESTING ACTIVITIES
Capital expenditures (765) (1,422) (4,075) (5,661)
Acquisition of Chart Marston (35,324)
Acquisition of Cryenco land and buildings (3,500)
Acquisition of Cryenco (20,128) (20,128)
Other investing activities (245) 43 (734) 239
------------------------ ------------------------
Net Cash Used In Investing Activities (1,010) (21,507) (43,633) (25,550)
FINANCING ACTIVITIES
Borrowings on credit facility 9,250 35,000 27,721 45,250
Repayments on credit facility and long-term debt (13,916) (22,440) (16,097) (30,386)
Treasury stock and stock option transactions (4,135) 14 (5,761) (5,359)
Dividends (1,207) (877) (3,630) (2,644)
------------------------ ------------------------
Net Cash Provided by (Used In) Financing Activities (10,008) 11,697 2,233 6,861
------------------------ ------------------------
Net decrease in cash and cash equivalents (2,059) (2,319) (19,918) (7,089)
Effect of exchange rate changes on cash (228) (181)
Cash and cash equivalents at beginning of period 4,283 4,638 22,095 9,408
------------------------ ------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,996 $ 2,319 $ 1,996 $ 2,319
======================== ========================
</TABLE>
The accompanying notes are an integral part of these condensed consolidated
financial statements.
5
<PAGE> 6
CHART INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
September 30, 1998
Note A - Basis of Preparation
The accompanying unaudited condensed consolidated financial statements of Chart
Industries, Inc. and subsidiaries ("Chart" or the "Company") have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the nine-month period ended September 30,
1998 are not necessarily indicative of the results that may be expected for the
year ending December 31, 1998. For further information, refer to the
consolidated financial statements and footnotes thereto included in the Chart
Industries, Inc. and Subsidiaries' Annual Report on Form 10-K for the year ended
December 31, 1997.
All share and per-share amounts have been adjusted to reflect the 3-for-2 stock
split effective June 30, 1998.
Note B - Inventories
The components of inventory consist of the following:
<TABLE>
<CAPTION>
September 30, December 31,
1998 1997
-----------------------------
<S> <C> <C>
Raw materials $ 14,628 $12,971
Work in process 15,296 11,992
Finished goods 1,008 922
LIFO reserve (268) (268)
-----------------------------
$ 30,664 $25,617
=============================
</TABLE>
6
<PAGE> 7
Note C - Earnings per Share
The following table sets forth the computation of basic and diluted earnings per
share:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
-----------------------------------------------------------
(dollars and shares in thousands, except per share amounts)
-----------------------------------------------------------
<S> <C> <C> <C> <C>
Numerator:
Net income $6,727 $5,791 $21,894 $14,973
Denominator:
Denominator for basic earnings per share -
weighted average shares 24,087 21,654 24,189 21,753
Effect of dilutive securities:
Employee stock options and warrants 263 554 352 497
----------------------------- ---------------------------
Dilutive potential common shares 24,350 22,208 24,541 22,250
============================= ===========================
Net income per share $0.28 $0.27 $0.91 $0.69
============================= ===========================
Net income per share - assuming dilution $0.28 $0.26 $0.89 $0.67
============================= ===========================
</TABLE>
Note D - Revenue Recognition
The Company uses the percentage of completion method of accounting for
significant contracts. Otherwise, revenue is reconized when the products are
completed or shipped. Management performs a monthly assessment of major
significant contracts to determine if contract costs will exceed contract
revenues. For those projects where the estimated costs exceed estimated
revenues, appropriate estimated losses are recorded. The effects of any change
orders are accounted for when agreed to by Chart's customers.
Note E - Acquisitions
On March 27, 1998, the Company, through its wholly-owned subsidiary Chart
Marston Limited ("Chart Marston"), acquired the net assets of the industrial
heat exchanger division of IMI Marston Limited, a wholly-owned subsidiary of IMI
plc., for 21 million Pounds Sterling (approximately U.S. $34.6 million). The
Company borrowed 11 million Pounds Sterling (approximately U.S. $18.5 million)
to fund the acquisition.
On July 31, 1997, the Company acquired all of the outstanding shares of Cryenco
for $20.8 million.
The pro forma unaudited results of operations for the nine months ended
September 30, 1998 and 1997, assuming consummation of both acquisitions as of
January 1, 1997 and only the Chart Marston acquisition as of January 1, 1998,
would not have been materially different than those reported. The pro forma
unaudited sales would have been $178,005 and $179,957 for the nine months ended
September 30, 1998 and 1997, respectively.
7
<PAGE> 8
Note F - Comprehensive Income
As of January 1, 1998, the Company adopted Financial Accounting Standards Board
Statement No. 130, "Reporting Comprehensive Income." Statement 130 establishes
new rules for the reporting and display of comprehensive income and its
components; however, the adoption of Statement 130 had no impact on the
Company's net income or shareholders' equity. Statement 130 requires foreign
currency translation adjustments to be included in other comprehensive income.
The Company did not incur any foreign currency translation adjustments prior to
its acquisition of Chart Marston on March 27, 1998. As a result, total
comprehensive income for the three months ended September 30, 1998 and 1997 was
$6,499 and $5,791, respectively. Total comprehensive income for the nine months
ended September 30, 1998 and 1997 was $21,713 and $14,973, respectively.
8
<PAGE> 9
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
RESULTS OF OPERATIONS
Order intake during the third quarter of 1998 slowed as a result of several
factors: the troubled Asian economies, continued softness in the industrial gas
market and delays in order releases in the hydrocarbon processing market. The
recent rise in the yen will have a positive material effect on the Company's
competitive position going forward. The Company continues to see and respond to
strong inquiry activity for hydrocarbon processing equipment and vacuum system
jobs, and is aggressively working to capitalize on these opportunities in order
to help offset the currently weak industrial gas market.
Sales for the third quarter of 1998 were $57.8 million versus $51.9 million for
the third quarter of 1997, an increase of $5.9 million, or 11.3 percent. The
addition of Chart Marston, acquired on March 27, 1998, contributed $8.9 million
in incremental sales to the third quarter of 1998. Third quarter sales to the
special products market decreased $1.9 million from the third quarter of 1997
primarily due to the LIGO project successfully winding down.
Sales for the nine months ended September 30, 1998 were $171.0 million versus
$136.1 million for the nine months ended September 30, 1997, an increase of
$34.8 million, or 25.6 percent. Cryenco, acquired on July 31, 1997, and Chart
Marston contributed $32.0 million in incremental sales to the first nine months
of 1998.
Gross profit for the third quarter of 1998 was $19.7 million versus $16.7
million for the third quarter of 1997, an improvement of $3.1 million or 18.5
percent. Gross profit margin for the third quarter of 1998 was 34.1 percent
versus 32.1 percent for the third quarter of 1997. Gross profit performance
remained strong largely supported by good margins on the Company's hydrocarbon
processing equipment sales, which accounted for approximately 25 percent of
sales at a gross margin of nearly 48 percent.
Gross profit for the nine months ended September 30, 1998 of $60.2 million, or
35.2 percent of sales, increased 42.3 percent from $42.3 million, or 31.1
percent of sales, for the nine months ended September 30, 1997. The Company was
able to achieve its strong gross profit performance largely due to the support
of the hydrocarbon processing equipment market, which accounted for
approximately 27 percent of sales at a gross margin just over 45 percent.
Selling, general and administrative (SG&A) expense for the third quarter of 1998
increased to $9.2 million from $7.4 million for the third quarter of 1997. SG&A
expense for the nine months ended September 30, 1998 was $25.8 million versus
$19.1 million for the nine months ended September 30, 1997. The increase in SG&A
expense was primarily due to the additions of Cryenco and Chart Marston. Some
implementation refinements in SG&A and gross margin reporting for Chart Marston
are still to be completed. As a percentage of sales, SG&A expense was 16.0
percent for the third quarter of 1998, up from 14.2 percent for the third
quarter of 1997.
9
<PAGE> 10
Net interest expense for the third quarter of 1998 was $353,000 versus $358,000
for the third quarter of 1997. Net interest expense for the nine months ended
September 30, 1998 increased to $746,000, from $376,000 for the nine months
ended September 30, 1997. The increase in net interest expense for the nine
month period was due to borrowings related to the acquisition of Chart Marston.
At September 30, 1998, the Company had outstanding borrowings of $12.2 million
on its $45 million credit facility and was in compliance with all related
covenants.
As a result of the foregoing, the Company reported net income for the third
quarter of 1998 of $6.7 million, or $.28 per share, versus $5.8 million, or $.26
per share, for the third quarter of 1997. Net income for the nine months ended
September 30, 1998 was $21.9 million, or $.89 per share, versus $15.0 million,
or $.67 per share, for the nine months ended September 30, 1997.
LIQUIDITY AND CAPITAL RESOURCES
Cash provided by operations during the third quarter of 1998 was $9.0 million
compared with $7.5 million for the third quarter of 1997. For the nine months
ended September 30, 1998, cash provided by operations was $21.5 million versus
$11.6 million for the nine months ended September 30, 1997. The Company's 1998
third-quarter and year to date cash flow reflects current earnings and
depreciation and amortization as working capital needs were relatively steady
and did not significantly impact cash flow.
Capital expenditures for the third quarter of 1998 were $765,000 compared with
$1.4 million for the corresponding quarter in 1997. For the nine months ended
September 30, 1998, capital expenditures were $4.1 million, versus $5.7 million
for the nine months ended September 30, 1997.
In November 1996, the Board of Directors authorized a program to repurchase
2,250,000 shares of the Company's Common Stock. During the third quarter of
1998, the Company paid $4.1 million to acquire 483,700 shares of its Common
Stock, leaving approximately 700,000 shares able to be repurchased under this
program.
The Company expects sufficient cash flow from operations and available
borrowings to fund principal and interest payments, dividends and capital
expenditures.
BACKLOG
Chart's consolidated firm order backlog at September 30, 1998, was $107.3
million. The Company's ending backlog for the second quarter of 1998 and the
third quarter of 1997 was $134.8 million and $125.6 million, respectively.
Orders for the third quarter of 1998 totaled $30.4 million, compared with orders
of $47.8 million for the second quarter of 1998.
Industrial gas equipment backlog at September 30, 1998, was $55.6 million, down
from $70.2 million at June 30, 1998. Orders for the third quarter of 1998
totaled $18.6 million, compared with $26.2 million for the second quarter of
1998.
10
<PAGE> 11
Hydrocarbon processing equipment backlog at September 30, 1998, was $42.1
million, down from $51.4 million at June 30, 1998. Orders for the third quarter
of 1998 were $5.3 million compared with $12.9 million for the second quarter of
1998. Although the Company experienced a decline in hydrocarbon processing
orders during the third quarter of 1998, this was due to delays in order
authorizations as opposed to project cancellations.
Special products backlog at September 30, 1998, totaled $9.6 million, down from
$13.2 million at June 30, 1998. The balance of the LIGO project, scheduled to be
completed in 1998, accounted for $1.9 million of the September 30, 1998 backlog.
Orders for the third quarter of 1998 were $6.5 million compared with $8.7
million for the second quarter of 1998.
YEAR 2000 PROBLEM
The Year 2000 Problem is the result of the inability of hardware, software and
control systems to properly recognize and process two-digit references to
specific years, beginning with the year 2000. The Year 2000 Problem could result
in system failures or miscalculations causing disruptions of the operations of
the Company, its suppliers and its customers.
In 1997, the Company completed a preliminary assessment of its exposure to the
Year 2000 Problem and determined that no critical software systems would be
impacted that could not be made compliant by January 1, 1999. In June 1998, the
Company initiated a formal assessment plan by identifying a lead person at each
of its locations to be responsible for ensuring that the location will be
compliant. The first phase of the formal assessment plan, which was completed in
the third quarter of 1998, included an inventory of all information technology
systems and control systems with embedded chip technology. Results of the
inventory indicated that all information technology systems are or should be
compliant by the year 2000, primarily because none of these systems involve
internally developed software and compliant versions are readily available. The
necessary modifications to ensure compliance relate primarily to purchased
software and some hardware replacement. The Company produces a limited number of
products utilizing control systems with embedded chip technology, and is
contacting the vendors who provide these embedded chips to determine compliance.
This project will be completed in the first quarter of 1999. The Company
believes that the third parties whose Year 2000 Problems pose the greatest risks
for the Company include its banks that maintain depository accounts, its payroll
processing company, its suppliers of the major materials used in production
processes, its utility providers and its providers of freight services. The
Company has communicated with these third parties to determine if they have an
effective plan in place to address the Year 2000 Problem, and have received
positive responses from the majority of these third parties. However, the
Company provides no assurance that these third parties will be year 2000
compliant or that their noncompliance will not have a material adverse effect on
the Company.
The Company currently estimates that it will spend less than $1 million to
ensure that its information technology systems are compliant, of which more than
half has been committed or spent through September 30, 1998. Accordingly, the
Company expects cash flow from operations and available borrowings to be
sufficient to fund these expenditures.
Based upon the results of year 2000 compliance efforts underway, the Company
believes that all critical information technology systems and control systems
with embedded chip technology will be compliant and will allow the Company to
continue to operate beyond the year 2000 without a material adverse effect on
its results of operations or financial position. However, unanticipated
problems which may be identified in the ongoing year 2000 preparation program
could result in an undetermined financial risk. Based upon the Company's
assessment of its year 2000 compliance and the indicated compliance of the third
parties it has contacted to date, the Company is developing contingency plans
as deemed necessary.
11
<PAGE> 12
FORWARD-LOOKING STATEMENTS
The Company is making this statement in order to satisfy the "safe harbor"
provisions contained in the Private Securities Litigation Reform Act of 1995.
This Quarterly Report on Form 10-Q includes forward-looking statements relating
to the business of the Company. Forward-looking statements contained herein or
in other statements made by the Company are made based on management's
expectations and beliefs concerning future events impacting the Company and are
subject to uncertainties and factors relating to the Company's operations and
business environment, all of which are difficult to predict and many of which
are beyond the control of the Company, that could cause actual results of the
Company to differ materially from those matters expressed or implied by
forward-looking statements. The Company believes that the following factors,
among others, could affect its future performance and cause actual results of
the Company to differ materially from those expressed or implied by
forward-looking statements made by or on behalf of the Company: (a) general
economic, business and market conditions; (b) competition; (c) decreases in
spending by its industrial customers; (d) the loss of a major customer or
customers; (e) ability of the Company to identify, consummate and integrate the
operations of suitable acquisition targets; (f) ability of the Company to manage
its fixed-price contract exposure; (g) its relations with its employees; (h) the
extent of product liability claims asserted against the Company; (i) variability
in the Company's operating results; (j) the ability of the Company to attract
and retain key personnel; (k) the costs of compliance with environmental
matters; (l) the ability of the Company to protect its proprietary
information; and (m) disruption of the Company's business or operations
resulting from the Year 2000 problem.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Not applicable.
12
<PAGE> 13
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits.
See the Exhibit Index on page 15 of this Form 10-Q.
(b) Reports on Form 8-K.
None
13
<PAGE> 14
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.
Chart Industries, Inc.
----------------------------------------
(Registrant)
Date: November 9, 1998 /s/Don A. Baines
------------------------ ----------------------------------------
Don A. Baines
Chief Financial Officer and Treasurer
14
<PAGE> 15
EXHIBIT INDEX
Exhibit Number Description of Document
-------------- -----------------------
27 Financial Data Schedule
15
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 1,996
<SECURITIES> 0
<RECEIVABLES> 38,612
<ALLOWANCES> 0
<INVENTORY> 30,664
<CURRENT-ASSETS> 77,015
<PP&E> 40,247
<DEPRECIATION> 0
<TOTAL-ASSETS> 159,095
<CURRENT-LIABILITIES> 52,968
<BONDS> 16,003
0
0
<COMMON> 243
<OTHER-SE> 89,337
<TOTAL-LIABILITY-AND-EQUITY> 159,095
<SALES> 170,957
<TOTAL-REVENUES> 170,957
<CGS> 110,754
<TOTAL-COSTS> 110,754
<OTHER-EXPENSES> 25,826
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 746
<INCOME-PRETAX> 33,631
<INCOME-TAX> 11,737
<INCOME-CONTINUING> 21,894
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 21,894
<EPS-PRIMARY> 0.91
<EPS-DILUTED> 0.89
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 2,319
<SECURITIES> 0
<RECEIVABLES> 32,886
<ALLOWANCES> 0
<INVENTORY> 24,750
<CURRENT-ASSETS> 63,136
<PP&E> 26,927
<DEPRECIATION> 0
<TOTAL-ASSETS> 106,306
<CURRENT-LIABILITIES> 43,238
<BONDS> 26,372
0
0
<COMMON> 153
<OTHER-SE> 35,964
<TOTAL-LIABILITY-AND-EQUITY> 106,306
<SALES> 136,137
<TOTAL-REVENUES> 136,137
<CGS> 93,834
<TOTAL-COSTS> 93,834
<OTHER-EXPENSES> 19,068
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 376
<INCOME-PRETAX> 22,859
<INCOME-TAX> 7,886
<INCOME-CONTINUING> 14,973
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 14,973
<EPS-PRIMARY> 0.69
<EPS-DILUTED> 0.67
<FN> Basic and diluted earnings per share have been restated in accordance with
FASB Statement No. 128, "Earnings Per Share."
</FN>
</TABLE>
