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UNITED STATES
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 DECEMBER 31, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FROM TO
Commission File Number 0-21728
BARNETT INC.
(Exact Name of Registrant as Specified in its Charter)
DELAWARE 59-1380437
(State of Incorporation) (I.R.S. Employer
Identification Number)
3333 LENOX AVENUE
JACKSONVILLE, FLORIDA 32254
(Address of Principal Executive Offices) (Zip Code)
(904)384-6530
(Registrant's Telephone Number Including Area Code)
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 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 ninety (90) days.
Yes X No
16,247,444 shares of Common Stock, $.01 par value, were issued and outstanding
as of January 31, 2000.
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BARNETT INC.
INDEX TO FORM 10-Q
PAGE
----
PART I. FINANCIAL INFORMATION
- ------- ---------------------
Item 1. Financial Statements
Consolidated Balance Sheets as of December 31, 1999
and June 30, 1999 3-4
Consolidated Statements of Income for the Six Months
and Three Months Ended December 31, 1999 and 1998 5
Consolidated Statements of Cash Flows for the Six
Months Ended December 31, 1999 and 1998 6
Notes to Consolidated Financial Statements 7-8
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 9-13
PART II. OTHER INFORMATION
- --------------------------
Item 6. Exhibits and Reports on Form 8-K 13
SIGNATURES 14
- -----------
2
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PART I. FINANCIAL INFORMATION
- -----------------------------
ITEM 1. FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
BARNETT INC.
------------
CONSOLIDATED BALANCE SHEETS
---------------------------
DECEMBER 31, 1999 AND JUNE 30, 1999
($ IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
ASSETS
DECEMBER 31, JUNE 30,
1999 1999
---- ----
(UNAUDITED)
<S> <C> <C>
CURRENT ASSETS:
Cash $ 4,308 $ 3,421
Accounts receivable, net 38,130 35,914
Inventories 60,036 52,733
Prepaid expenses 3,393 2,873
--------- ---------
Total current assets 105,867 94,941
--------- ---------
PROPERTY AND EQUIPMENT:
Leasehold improvements 9,054 8,265
Furniture and fixtures 5,080 4,662
Machinery and equipment 21,979 19,352
Building and improvements 7,286 7,281
--------- ---------
43,399 39,560
Less accumulated depreciation and amortization (18,380) (15,978)
--------- ---------
Property and equipment, net 25,019 23,582
COST OF BUSINESSES IN EXCESS OF NET ASSETS ACQUIRED, NET 26,966 27,353
DEFERRED TAX ASSETS, NET 857 857
OTHER ASSETS 2,775 2,453
--------- ---------
$ 161,484 $ 149,186
========= =========
</TABLE>
The accompanying Notes to Consolidated Financial Statements are an
integral part of these statements.
3
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<TABLE>
<CAPTION>
BARNETT INC.
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1999 AND JUNE 30, 1999
($ IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
LIABILITIES AND STOCKHOLDERS' EQUITY
DECEMBER 31, JUNE 30,
1999 1999
---- ----
(UNAUDITED)
<S> <C> <C>
CURRENT LIABILITIES:
Accounts payable $ 24,628 $ 20,061
Accrued liabilities 3,496 4,061
Accrued income taxes 103 151
Accrued interest 343 342
-------- --------
Total current liabilities 28,570 24,615
-------- --------
Long-Term Debt 33,000 33,000
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value per share:
Authorized 40,000 shares; Issued and outstanding
16,247 shares at December 31, 1999 and 16,218 at
June 30, 1999 162 162
Paid-in capital 48,152 47,937
Retained earnings 51,600 43,472
-------- --------
Total stockholders' equity 99,914 91,571
-------- --------
$161,484 $149,186
======== ========
</TABLE>
The accompanying Notes to Consolidated Financial Statements are an
integral part of these statements.
4
<PAGE> 5
<TABLE>
<CAPTION>
BARNETT INC.
------------
CONSOLIDATED STATEMENTS OF INCOME
---------------------------------
(UNAUDITED)
FOR THE SIX MONTHS AND THREE MONTHS ENDED DECEMBER 31, 1999 AND 1998
($ IN THOUSANDS, EXCEPT PER SHARE DATA)
SIX MONTHS ENDED THREE MONTHS ENDED
DEC. 31 DEC. 31
------- -------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net sales $138,472 $110,511 $ 71,072 $ 58,120
Cost of sales 93,386 74,057 47,720 38,842
-------- -------- -------- --------
Gross profit 45,086 36,454 23,352 19,278
Selling, general and
administrative expenses 30,590 24,178 15,373 12,600
-------- -------- -------- --------
Operating income 14,496 12,276 7,979 6,678
Interest expense, net 969 66 482 65
-------- -------- -------- --------
Income before income taxes 13,527 12,210 7,497 6,613
Provision for income taxes 5,397 4,704 2,985 2,548
-------- -------- -------- --------
Net income $ 8,130 $ 7,506 $ 4,512 $ 4,065
======== ======== ======== ========
Basic earnings per share $ 0.50 $ 0.46 $ 0.28 $ 0.25
Diluted earnings per share $ 0.50 $ 0.46 $ 0.28 $ 0.25
Weighted average shares outstanding:
Basic 16,233 16,212 16,247 16,212
Diluted 16,235 16,223 16,251 16,216
</TABLE>
The accompanying Notes to Consolidated Financial Statements are an
integral part of these statements.
5
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<TABLE>
<CAPTION>
BARNETT INC.
------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
-------------------------------------
(UNAUDITED)
FOR THE SIX MONTHS ENDED DECEMBER 31, 1999 AND 1998
($ IN THOUSANDS)
DECEMBER 31,
1999 1998
---- ----
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 8,130 $ 7,506
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization 2,789 2,164
Changes in assets and liabilities:
Increase in accounts receivable, net (2,216) (4,475)
Increase in inventories (7,303) (10,493)
Increase in prepaid expenses (520) (767)
Changes in other assets (322) (47)
Increase in accounts payable 4,567 3,677
Decrease in accrued liabilities (612) (85)
-------- --------
Net Cash Provided by (Used in) Operating Activities 4,513 (2,520)
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures, net (3,841) (3,975)
-------- --------
Net Cash Used in Investing Activities (3,841) (3,975)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under credit agreement -- 23,778
Repayments under credit agreement -- (17,491)
Net proceeds from issuance of common stock-stock options, grants 215 78
Issuance of common stock -- 1
-------- --------
Net Cash Provided by Financing Activities 215 6,366
-------- --------
NET INCREASE (DECREASE) IN CASH 887 (129)
BALANCE, BEGINNING OF PERIOD 3,421 450
-------- --------
BALANCE, END OF PERIOD $ 4,308 $ 321
======== ========
</TABLE>
The accompanying Notes to Consolidated Financial Statements are an
integral part of these statements.
6
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BARNETT INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
---------------------------------------
(UNAUDITED)
DECEMBER 31, 1999
NOTE 1 - BASIS OF PRESENTATION
The consolidated financial statements include the accounts of Barnett Inc. (a
Delaware corporation) and its wholly owned subsidiary, U.S. Lock Corporation
(collectively, the "Company"). All material intercompany transactions have been
eliminated.
The consolidated statements of income for the six months and three months ended
December 31, 1999 and 1998, the consolidated balance sheet as of December 31,
1999 and the consolidated statements of cash flows for the six months ended
December 31, 1999 and 1998 have been prepared by the Company without audit,
while the consolidated balance sheet as of June 30, 1999 was derived from
audited financial statements. In the opinion of management, these financial
statements include all adjustments, all of which are normal and recurring in
nature, necessary to present fairly the financial position, results of
operations and cash flows as of December 31, 1999 and for all periods presented.
Certain information and footnote disclosures normally included in annual
financial statements prepared in accordance with generally accepted accounting
principles have been consolidated or omitted. The Company believes that the
disclosures included are adequate and provide a fair presentation of interim
period results. Interim financial statements are not necessarily indicative of
financial position or operating results for an entire year. It is suggested that
these consolidated interim financial statements be read in conjunction with the
audited financial statements and the notes thereto included in the Company's
Annual Report on Form 10-K for the fiscal year ended June 30, 1999 filed with
the Securities and Exchange Commission.
NOTE 2 - BUSINESS
The Company operates in a single business segment -- the distribution of
plumbing, electrical, hardware and security hardware products, utilizing mail
order catalogs and a telesales program. The Company's various products are
economically similar and do not require separate segment reporting.
NOTE 3 - SUPPLEMENTAL CASH FLOW INFORMATION
Cash payments during the six months ended December 31, 1999 and 1998 included
income taxes of $5.6 million and $5.1 million, respectively, and interest of
$1.0 million and $14,000, respectively.
NOTE 4 - BUSINESS ACQUISITION
On January 8, 1999, Barnett Inc. acquired the U.S. Lock ("U.S. Lock") division
of WOC, Inc., an indirect wholly-owned subsidiary of Waxman Industries, Inc. for
a cash purchase price of approximately $33.0 million and the assumption of
liabilities of approximately $2.0 million. The effective date of the U.S. Lock
acquisition was January 1, 1999.
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The acquisition of U.S. Lock was accounted for as a purchase. Accordingly, the
purchase price was allocated to the net assets acquired based upon their
estimated fair market values. The excess of the purchase price over the
estimated fair value of net assets acquired amounted to approximately $23.0
million. This has been accounted for as goodwill and is being amortized over 40
years using the straight line method.
The following unaudited pro forma information presents a summary of consolidated
results of operations of Barnett Inc. and U.S. Lock as if the acquisition had
occurred at the beginning of fiscal year 1999, with pro forma adjustments to
give effect to amortization of goodwill, interest expense on acquisition debt
and certain other adjustments, together with related income tax effects (dollars
in thousands, except per share data).
<TABLE>
<CAPTION>
Three Months Six Months
Ended 12-31-98 Ended 12-31-98
- --------------------------------------------------------------------------------------
<S> <C> <C>
Net sales $64,932 $123,873
Net income $4,103 $7,572
Earnings per share $0.25 $0.47
- --------------------------------------------------------------------------------------
</TABLE>
NOTE 5 - EARNINGS PER SHARE
Basic earnings per share is calculated based on weighted average number of
shares of common stock outstanding. Diluted earnings per share is calculated
based on the weighted average number of shares of common stock outstanding and
common stock equivalents, consisting of outstanding stock options. Common stock
equivalents are determined using the treasury method for diluted shares
outstanding. The difference between diluted and basic shares outstanding are
common stock equivalents from stock options outstanding in the six months and
three months ended December 31, 1999 and 1998.
NOTE 6 - IMPACT OF ACCOUNTING STANDARDS
In June 1998, FASB issued SFAS No. 133, "Accounting for Derivative Instruments
and Hedging Activities". The statement establishes accounting and reporting
standards for derivative instruments (including certain derivative instruments
embedded in other contracts). SFAS No. 133 is effective for fiscal years
beginning after June 15, 2000. The adoption of this standard is not expected to
have a material impact on reported results of the Company's operations.
NOTE 7 - ACCOUNTING CHANGE
In the first quarter of fiscal year 2000, the Company adopted Statement of
Position ("SOP")No. 98-5, "Reporting on the Costs of Start-Up Activities" which
requires expensing these costs as incurred, rather than capitalizing and
subsequently amortizing such costs. The adoption of this SOP resulted in certain
balance sheet re-classifications in addition to write-offs charged directly to
operations, of the costs capitalized as of June 30, 1999.
8
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
-------------------------------------------------
CONDITION AND RESULTS OF OPERATIONS
-----------------------------------
This Quarterly Report contains certain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995 that are based
on the beliefs of the Company and its management. When used in this document,
the words "expect", "believe", "intend", "may", "should", "anticipate", and
similar expressions are intended to identify forward- looking statements. Such
forward looking statements reflect the current view of the Company with respect
to future events and are subject to certain risks, uncertainties and assumptions
including, but not limited to, the risk that the Company may not be able to
implement its growth strategy in the intended manner, risks associated with
currently unforeseen competitive pressures and risks affecting the Company's
industry such as increased distribution costs and the effects of general
economic conditions. In addition, the Company's business, operations, and
financial condition are subject to the risks, uncertainties and assumptions
which are described in the Company's reports and statements filed from time to
time with the Securities and Exchange Commission, including this Report. Should
one or more of these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from those
described herein as anticipated, believed, estimated, expected or intended.
OVERVIEW
The Company is a direct marketer and distributor of an extensive line of
plumbing, electrical, hardware and security hardware products to approximately
73,000 active customers throughout the United States, the Caribbean and South
America. Effective January 1, 1999, the Company acquired U.S. Lock, a division
of WOC, Inc., a wholly-owned subsidiary of Waxman Industries, Inc., for a cash
purchase price of $33.0 million and the assumption of liabilities estimated at
approximately $2.0 million. The Company offers approximately 21,000 name brand
and private label products through its industry-recognized Barnett(R) and U.S.
Lock(R) catalogs and telesales operations. The Company markets its products
through six distinct, comprehensive catalogs that target professional
contractors, independent hardware stores, maintenance managers, liquid propane
gas ("LP Gas") dealers and locksmiths. The Company's staff of over 140
knowledgeable telesales, customer service and technical support personnel work
together to serve customers by assisting in product selection and offering
technical advice. To provide rapid delivery and a strong local presence, the
Company has established a network of 42 distribution centers strategically
located in 36 major metropolitan areas throughout the United States and Puerto
Rico. Through these local distribution centers, approximately 70% of the
Company's orders are shipped to the customer on the same day the order is
received. The remaining 30% of the orders are picked up by the customer at one
of the Company's local distribution centers. The Company's strategy of being a
low-cost, competitively priced supplier is facilitated by its volume of
purchases and offshore sourcing of a significant portion of its private label
products. Products are purchased from over 650 domestic and foreign suppliers.
9
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RESULTS OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1999 COMPARED WITH
SIX MONTHS ENDED DECEMBER 31, 1998
NET SALES
Net sales increased $28.0 million, or 25.3%, to $138.5 million in the six months
ended December 31, 1999 from $110.5 million in the corresponding prior year
period. Approximately 87.7% of the increase in the Company's net sales was
derived from the Company's telesales operations, primarily resulting from
increased sales by existing telesalespersons and the addition of 22
telesalespersons acquired with U.S. Lock, compared to the prior year period. The
remainder of the net sales increase was attributable to the Company's outside
sales force, integrated account management teams, factory direct programs and
the Company's export division. New customers garnished from the Company's
promotional flyer campaigns contributed approximately $6.0 million to the net
sales increase for the six months ended December 31, 1999. Also contributing to
the net sales increase for the six month period was revenue from new product
introductions approximating $5.9 million.
Last year, the Company began an integration of its outside sales force with its
telesales force. The integrated account management provides synergies with
improved customer knowledge, as well as superior customer service and quicker
response times. These integrated account management teams produced revenue
increases in six months ending December 31, 1999 exceeding 20%. Additionally,
the Company's export division, primarily consisting of a small dedicated
international telesales staff, garnished revenue increases in excess of 27%.
Furthermore, the Company continues to invest in its factory direct programs
whereby products are shipped directly to the customer from certain suppliers and
manufacturers. These programs yielded more than 30% revenue increases in the six
months ended December 31, 1999.
The Company opened its 41st distribution center in Orlando, Florida in October
1999 and its 42nd distribution center in Phoenix, Arizona in December 1999. The
sales contribution from these new distribution centers was not significant for
the current six month period.
GROSS PROFIT
Gross profit increased by 23.7% to $45.1 million in the six months ended
December 31, 1999 from $36.5 million in the corresponding prior year period.
Gross profit margins decreased to 32.6% for the six months ended December 31,
1999 from 33.0% for the same period last year, primarily as a result of the
aforementioned increased activity in the Company's direct sales programs, which
typically carry much lower gross profit margins than the Company's warehouse
shipments.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative ("SG&A") expenses increased 26.5% to $30.6
million for the six months ended December 31, 1999, from $24.2 million for the
comparable prior year period. The increase is primarily due to combining the
expenses of U.S. Lock along with the occupancy and other expenses related to the
opening of two new distribution centers in the current fiscal year. Increased
wages and training costs related to personnel turnover in various distribution
centers, also contributed to the increased expense level, as well as the
amortization of goodwill related to the U.S. Lock acquisition.
10
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PROVISION FOR INCOME TAXES
The provision for income taxes increased $0.7 million or 14.7% to $5.4 million
for the six months ended December 31, 1999 from $4.7 million for the six months
ended December 31, 1998, primarily as a result of increased operating income and
the non-deductibility of the goodwill amortization.
THREE MONTHS ENDED DECEMBER 31, 1999 COMPARED WITH
THREE MONTHS ENDED DECEMBER 31, 1998
NET SALES
Net sales increased $13.0 million, or 22.3%, to $71.1 million in the three
months ended December 31, 1999 from $58.1 million in the corresponding prior
year period. Approximately 89.7% of the increase in the Company's net sales was
derived from the Company's telesales operations, primarily resulting from
increased sales by existing telesalespersons and the addition of 22
telesalespersons acquired with U.S. Lock, compared to the prior year period. The
remainder of the net sales increase was attributable to the Company's outside
sales force, integrated account management teams, factory direct programs and
the Company's export division. New customers garnished from the Company's
promotional flyer campaigns contributed approximately $2.2 million to the net
sales increase for the three months ended December 31, 1999. Also contributing
to the net sales increase for the three month period was revenue from new
product introductions approximating $3.0 million.
As noted above, last fiscal year, the Company began an integration of its
outside sales force with its telesales force. The integrated account management
provides synergies with improved customer knowledge, as well as superior
customer service and quicker response times. These integrated account management
teams produced revenue increases in three months ending December 31, 1999
exceeding 19%. Additionally, the Company's export division, primarily consisting
of a small dedicated international telesales staff, garnished revenue increases
in excess of 24%. Furthermore, the Company continues to invest in its factory
direct programs whereby products are shipped directly to the customer from
certain suppliers and manufacturers. These programs yielded more than 38%
revenue increases in the three months ended December 31, 1999.
The Company opened its 41st distribution center in Orlando, Florida in October
1999 and its 42nd distribution center in Phoenix, Arizona in December 1999. The
sales contribution from these new distribution centers was not significant for
the current three month period.
GROSS PROFIT
Gross profit increased by 21.1% to $23.4 million in the three months ended
December 31, 1999 from $19.3 million in the corresponding prior year period.
Gross profit margins decreased to 32.9% for the three months ended December 31,
1999 from 33.2% for the same period last year, primarily as a result of the
aforementioned increased activity in the Company's direct sales programs, which
typically carry much lower gross profit margins than the Company's warehouse
shipments.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative ("SG&A") expenses increased 22.0% to $15.4
million for the three months ended December 31, 1999, from $12.6 million for the
comparable prior year
11
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period. The increase is primarily due to combining the expenses of U.S. Lock
along with the occupancy and other expenses related to the opening of two new
distribution centers in the current fiscal year. Increased wages and training
costs related to personnel turnover in various distribution centers, also
contributed to the increased expense level, as well as the amortization of
goodwill related to the U.S. Lock acquisition.
PROVISION FOR INCOME TAXES
The provision for income taxes increased $0.4 million or 17.2% to $3.0 million
for the three months ended December 31, 1999 from $2.5 million for the three
months ended December 31, 1998, primarily as a result of increased operating
income and the non-deductibility of the goodwill amortization.
YEAR 2000
The Year 2000 issue is the result of computer programs being written using two
digits rather than four to define the applicable year. Computer programs that
have date-sensitive software may recognize a date using "00" as the year 1900
rather than the year 2000. This could result in a system failure or in
miscalculations causing disruptions to operations, including, among other
things, a temporary inability to process transactions, to send invoices to
customers, or to engage in similar normal business activities. The Year 2000
issue affects virtually all companies and organizations.
The Company had identified all computer-based systems and applications
(including embedded systems) that were not Year 2000 compliant and determined
what revisions, replacements or updates were needed to achieve compliance.
Management believes that all of the systems are compliant currently.
The Company had put in place project teams dedicated to implementing a Year 2000
solution. The teams actively worked to achieve the objectives of Year 2000
compliance. The work included the modification of certain existing systems,
replacing hardware and software for other systems, the creation of contingency
plans, and surveying suppliers of goods and services with whom the Company does
business.
The Company used standard methodology with three phases for the Year 2000
compliance project. Phase I included conducting a complete inventory of
potentially affected areas of the business (including information technology and
non-information technology), assessing and prioritizing the information
collected during the inventory, and completing project plans to address all key
areas of the project. Phase II included the remediation and testing of all
mission critical areas of the project, surveying suppliers of goods and services
with whom the Company does business, and the creation of contingency plans to
address potential Year 2000 related problems. Phase III of the project included
the remediation and testing of non- mission critical areas of the project, and
the implementation of contingency plans as may be necessary. The Company
completed all phases of this project as of September 30, 1999.
The Company used both internal and external resources to reprogram, replace, and
test the software and hardware for Year 2000 compliance. Year 2000 work for
mission critical and most non-mission critical systems and testing of all system
revisions is complete. The expenses associated with this project included both a
reallocation of existing internal resources plus the use of outside services.
Project expenses to date amount to an estimated $35,000.
12
<PAGE> 13
In addition to addressing internal systems, the Company's Year 2000 project team
surveyed suppliers of goods and services with whom the Company does business.
This was done to determine the extent to which the Company is vulnerable to
failures by third parties to remedy their own Year 2000 issues. However, there
can be no guarantee that the systems of other companies, including those on
which the Company's systems interact, will be timely converted. A failure to
convert by another company on a timely basis or a conversion by another company
that is incompatible with the Company's systems, may have an adverse effect on
the Company.
Based on the information available at the time of this filing, the Company has
not experienced any significant Year 2000 related issues that would have an
adverse effect on the Company's business operations and financial condition.
There can be no assurance, however, that all potential Year 2000 related issues
have been discovered.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
a) Exhibits:
(27) Financial Data Schedule
b) No Reports on Form 8-K were filed.
All other items in Part II are either inapplicable to the Company during the
quarter ended December 31, 1999, the answer is negative or a response has been
previously reported and an additional report of the information need not be made
pursuant to the instructions to Part II.
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.
BARNETT INC.
REGISTRANT
DATE: FEBRUARY 1, 2000 By: /s/ Andrea Luiga
Andrea Luiga
Chief Financial Officer
(principal financial and
accounting officer)
14
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-START> JUL-01-1999
<PERIOD-END> DEC-31-1999
<CASH> 4,308
<SECURITIES> 0
<RECEIVABLES> 40,220
<ALLOWANCES> (2,090)
<INVENTORY> 60,036
<CURRENT-ASSETS> 105,867
<PP&E> 43,399
<DEPRECIATION> (18,380)
<TOTAL-ASSETS> 161,484
<CURRENT-LIABILITIES> 28,570
<BONDS> 0
0
0
<COMMON> 162
<OTHER-SE> 99,752
<TOTAL-LIABILITY-AND-EQUITY> 161,484
<SALES> 138,472
<TOTAL-REVENUES> 138,472
<CGS> 93,386
<TOTAL-COSTS> 93,386
<OTHER-EXPENSES> 30,131
<LOSS-PROVISION> 459
<INTEREST-EXPENSE> 969
<INCOME-PRETAX> 13,527
<INCOME-TAX> 5,397
<INCOME-CONTINUING> 8,130
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 8,130
<EPS-BASIC> 0.50
<EPS-DILUTED> 0.50
</TABLE>
