<PAGE>
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 March 31, 2000
OR
[ ] Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Commission File Number 0-21872
ALDILA, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 13-3645590
(State or other jurisdiction of (I.R.S. Employer Identification Number)
incorporation or organization)
12140 COMMUNITY ROAD, POWAY, CALIFORNIA 92064
(Address of principal executive offices)
(858) 513-1801
(Registrant's Telephone No.)
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
--- ---
As of May 11, 2000 there were 15,462,204 shares of the Registrant's common
stock, par value $0.01 per share, outstanding.
- -------------------------------------------------------------------------------
1
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ALDILA, INC.
TABLE OF CONTENTS
FORM 10-Q FOR THE QUARTERLY PERIOD
ENDED MARCH 31, 2000
<TABLE>
<CAPTION>
Page
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<S> <C> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets at
March 31, 2000 and December 31, 1999 3
Consolidated Statements of Operations for the
three months ended March 31, 2000 and 1999 4
Consolidated Statements of Cash Flows for the
three months ended March 31, 2000 and 1999 5
Notes to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
PART II OTHER INFORMATION
Item 1. Legal Proceedings 12
Item 2. Changes in Securities 12
Item 3. Defaults Upon Senior Securities 12
Item 4. Submission of Matters to a Vote of Security Holders 12
Item 5. Other Information 12
Item 6. Exhibits and Reports on Form 8-K 12
Signatures 13
</TABLE>
2
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
ALDILA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
2000 1999
------------ ------------
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 5,068 $ 4,077
Marketable securities -- 4,513
Accounts receivable 7,654 4,807
Inventories 9,336 12,326
Deferred tax assets 4,010 4,010
Prepaid expenses and other current assets 695 741
------------ ------------
Total current assets 26,763 30,474
PROPERTY, PLANT AND EQUIPMENT 10,327 11,298
INVESTMENT IN JOINT VENTURE 7,248 7,181
TRADEMARKS AND PATENTS 13,724 13,833
GOODWILL 44,413 44,770
DEFERRED FINANCING FEES 223 256
OTHER ASSETS 203 191
------------ ------------
TOTAL ASSETS $ 102,901 $ 108,003
------------ ------------
------------ ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 3,061 $ 3,258
Accrued expenses 1,983 3,693
Income taxes payable 805 167
Long-term debt, current portion 8,000 8,000
------------ ------------
Total current liabilities 13,849 15,118
LONG-TERM LIABILITIES:
Long-term debt 4,000 8,000
Deferred tax liabilities 6,286 6,338
Deferred rent liabilities 37 398
------------ ------------
Total liabilities 24,172 29,854
------------ ------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par value; authorized 5,000,000 shares;
no shares issued
Common stock, $.01 par value; authorized 30,000,000 shares;
issued and outstanding 15,462,204 shares 155 155
Additional paid-in capital 42,627 42,627
Retained earnings 35,947 35,367
------------ ------------
Total stockholders' equity 78,729 78,149
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 102,901 $ 108,003
------------ ------------
------------ ------------
</TABLE>
See notes to consolidated financial statements.
3
<PAGE>
ALDILA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
----------------------------
2000 1999
------------ ------------
<S> <C> <C>
NET SALES $ 16,713 $ 10,563
COST OF SALES 13,727 8,274
------------ ------------
Gross profit 2,986 2,289
------------ ------------
SELLING, GENERAL AND ADMINISTRATIVE 1,878 1,865
AMORTIZATION OF GOODWILL 357 357
PLANT CONSOLIDATION (566) --
------------ ------------
Operating income 1,317 67
------------ ------------
OTHER EXPENSE (INCOME):
Interest expense 288 334
Other, net (137) 7
Equity in earnings of joint venture (38) --
------------ ------------
INCOME (LOSS) BEFORE INCOME TAXES 1,204 (274)
PROVISION FOR INCOME TAXES 624 33
------------ ------------
NET INCOME (LOSS) $ 580 $ (307)
------------ ------------
------------ ------------
NET INCOME (LOSS) PER COMMON SHARE - BASIC $ 0.04 $ (0.02)
------------ ------------
------------ ------------
NET INCOME (LOSS) PER COMMON SHARE,
ASSUMING DILUTION $ 0.04 $ (0.02)
------------ ------------
------------ ------------
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING 15,462 15,462
------------ ------------
------------ ------------
WEIGHTED AVERAGE NUMBER OF COMMON
AND COMMON EQUIVALENT SHARES 15,576 15,462
------------ ------------
------------ ------------
</TABLE>
See notes to consolidated financial statements.
4
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ALDILA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED
(IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
-----------------------------
2000 1999
------------ ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 580 $ (307)
Adjustments to reconcile net income (loss) to net cash
provided by (used for) operating activities:
Depreciation and amortization 1,073 1,585
Loss on disposal of fixed assets -- 9
Changes in assets and liabilities:
Accounts receivable (2,847) (2,484)
Inventories 2,990 (27)
Prepaid expenses and other current assets 34 278
Accounts payable (197) (277)
Accrued expenses (1,187) (703)
Income taxes payable 638 (623)
Deferred tax liabilities (52) (52)
Deferred rent liabilities (361) (30)
------------ ------------
Net cash provided by (used for) operating activities 671 (2,631)
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment, net (126) (644)
Investment in marketable securities 4,513 --
Investment in joint venture (67) --
------------ ------------
Net cash provided by (used for) investing activities 4,320 (644)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under line of credit -- 1,700
Principal payments on long-term debt (4,000) --
------------ ------------
Net cash provided by (used for) financing activities (4,000) 1,700
------------ ------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 991 (1,575)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 4,077 1,972
------------ ------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 5,068 $ 397
------------ ------------
------------ ------------
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest $ 500 $ 630
Income taxes $ 10 $ 473
</TABLE>
See notes to consolidated financial statements.
5
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ALDILA, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
1. BASIS OF PRESENTATION
The consolidated balance sheet as of March 31, 2000 and the consolidated
statements of operations and of cash flows for the three month period ended
March 31, 2000 and 1999, are unaudited and reflect all adjustments of a
normal recurring nature which are, in the opinion of management, necessary
for a fair presentation of the financial position and results of operations
for the interim periods presented. The consolidated balance sheet as of
December 31, 1999 was derived from the Aldila Inc. and subsidiaries' (the
"Company's") audited financial statements. Operating results for the interim
periods presented are not necessarily indicative of results to be expected
for the fiscal year ending December 31, 2000. These consolidated financial
statements should be read in conjunction with the Company's December 31, 1999
consolidated financial statements and notes thereto.
2. INVENTORIES
Inventories consist of the following (in thousands):
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
---- ----
<S> <C> <C>
Raw materials $5,411 $6,026
Work in process 1,980 3,658
Finished goods 1,945 2,642
------------ ------------
Inventories $9,336 $12,326
------------ ------------
------------ ------------
</TABLE>
3. LONG-TERM DEBT
SENIOR NOTES -- The Company placed $20.0 million in principal amount of
senior notes with an institutional investor on November 30, 1993. $12.0
million in principal remains outstanding at March 31, 2000. The notes bear
interest at 6.13%, payable semi-annually on March 31, and September 30.
Semi-annual principal payments of $4.0 million are due on March 31 and
September 30 through September 30, 2001. The senior notes contain certain
restrictions, including limitations on additional borrowings, the payment of
dividends and capital stock repurchases. Under the most restrictive provision
of the note agreement, the Company must meet consolidated fixed charge
coverage ratios at specified levels. As of March 31, 2000, the Company was in
compliance with all covenants under the senior notes. The fair value of the
fixed rate senior notes approximates their carrying amount based on the
estimated current incremental borrowing rates for similar obligations with
similar terms.
6
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REVOLVING CREDIT AGREEMENT -- On July 9, 1999, Aldila Golf, a
wholly-owned subsidiary of the Company, entered into a Loan and Security
Agreement (the "Agreement") with a financial institution which provides
Aldila Golf with up to $12.0 million in secured financing. The Agreement has
a three year term and is secured by substantially all of the assets of Aldila
Golf and guaranteed by the Company. Advances under the Agreement are made
based on eligible accounts receivables and inventories of Aldila Golf Corp.
and bear interest at the Adjusted Eurodollar rate (as defined) plus 2.5% or
at the bank reference rate at the election of the Company. The Agreement
requires the Company to maintain a minimum level of tangible net worth (as
defined). As of March 31, 2000, the Company was in compliance with all
covenants under the Agreement and there were no outstanding borrowings.
4. COMMITMENT AND CONTINGENCIES
The Company completed a Lease Termination Agreement ("Agreement") with
the landlord of the Rancho Bernardo manufacturing facility subsequent to
December 31, 1999. The Agreement allows the Company to buy itself out of the
remaining years (through 12/31/2001) of the lease for a sum of $900,000. The
Agreement was finalized and the payment was made on February 18, 2000. As
such, the Company recovered approximately $0.6 million against previously
taken plant consolidation charges.
7
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
OVERVIEW - BUSINESS CONDITIONS
The Company is principally engaged in the business of designing,
manufacturing and marketing graphite (carbon fiber based composite) golf club
shafts, with approximately 89% of its net sales resulting from sales to golf
club manufacturers for inclusion in their clubs. As a result, the Company's
operating results are substantially dependent not only on demand by its
customers for the Company's shafts, but also on demand by consumers for clubs
including graphite shafts such as the Company's.
In 1998, the Company established a manufacturing facility in Evanston,
Wyoming for the production of carbon fiber. During 1998 and through the first
ten months of 1999, the Company used the material from this facility to
satisfy a significant portion of its internal demand for carbon fiber in the
manufacturing of golf club shafts. During 1999, the Company also produced and
sold carbon fiber from this facility to other unrelated entities for the
manufacture of other carbon-based products. On October 29, 1999, SGL Carbon
Fibers and Composite, Inc. ("SGL") purchased a 50% interest in the Company's
carbon fiber manufacturing operation. The Company and SGL entered into an
agreement to operate the facility as a limited liability company with equal
ownership interests between the venture partners. The Company and SGL also
entered into supply agreements with the new entity, Carbon Fiber Technology
LLC ("CFT"), for the purchase of carbon fiber at cost plus an agreed mark-up.
Profits and losses of CFT will be shared equally by the partners. The Company
anticipates that the carbon fiber from this facility will primarily be
consumed by the joint venture partners; however, any excess carbon fiber
produced at this facility could be marketed for sale to unrelated third
parties. The Company does not expect third party sales at CFT nor the sale of
graphite prepreg to have a significant effect on either its sales or
profitability for several years.
Historically, graphite shafts have principally been offered by
manufacturers of higher priced, premium golf clubs, and the Company's sales
have been predominantly of premium graphite shafts. However, in recent years
the Company has realized substantial sales growth in the value priced segment
of the graphite shaft market. The Company now competes aggressively with
primarily United States based shaft manufacturers for premium graphite shafts
and also against primarily foreign based shaft manufacturers for lower priced
value shaft sales. The Company continues to maintain a broad customer base in
the premium shaft market segment. While the Company's market share in the
value segment is not as great as the premium segment, the Company has
advanced rapidly in securing new customers in this segment in recent years.
Presently, there exists substantial excess graphite shaft manufacturing
capacity both in the United States and in other countries. This has had the
effect, and is expected by management to continue to have the effect for at
least the next several years, of decreasing the selling prices of the
Company's shafts. Although the Company's gross profit margin is being
adversely affected by the reduction in selling prices, the adverse effects on
gross margin have been mitigated to some extent by efforts being taken by the
Company to control costs, including obtaining lower prices for its raw
materials and manufacturing its own graphite prepreg, and should be
8
<PAGE>
mitigated to some extent in the future as the Company increases the
percentage of its shafts being manufactured in countries with lower labor and
overhead costs.
In recent years, the Company's results of operations have been
materially affected on several occasions by dramatic year-to-year changes in
sales to an individual golf club manufacturer customer. Such changes can
result either from decisions by the customer to increase or decrease shaft
purchases from an alternative supplier or from the traditional volatility in
consumer demand for specific clubs. The Company believes that this volatility
is likely to continue in the future, particularly as club manufacturers seek
to gain competitive advantages through an increased rate of technological
innovation in club design. The Company's results will benefit whenever it has
an opportunity to supply shafts for the latest "hot" club and will be
adversely affected whenever sales of clubs containing Aldila shafts drop
dramatically. In particular, in recent years, a significant portion of the
Company's sales has tended to be concentrated among several customers,
thereby making the Company's results of operations dependent to a large
extent on continued sales to Taylor Made, Callaway and Ping. In 1999, sales
to Taylor Made Golf, Callaway Golf Company and Ping represented 17%, 12% and
10%, respectively, of the Company's total net sales. The Company expects
Taylor Made, Callaway and Ping to continue to be the Company's largest
customers, at least through 2000. The Company believes that while it will
often not be possible to predict, with any certainty, shifts in demand for
particular clubs, the Company's broad range of club manufacturer customers
should reduce in some cases the extent of the impact on the Company's
financial results.
RESULTS OF OPERATIONS
FIRST QUARTER 2000 COMPARED TO FIRST QUARTER 1999
NET SALES. Net sales increased $6.1 million, or 58.2%, to $16.7 million
for the first quarter ended March 31, 2000 (the "2000 Period") from $10.6
million for the first quarter ended 1999 (the "1999 Period"). The increase in
net sales was attributable to increased shaft unit sales to the Company's
club manufacturer customers which was partially offset by a decrease in the
average selling price of shafts sold. Shaft unit sales increased 110% in the
2000 Period as compared to the 1999 Period, and the average selling price of
shafts sold decreased 15%, partly as a result of a change in product mix to
lower priced value shafts.
GROSS PROFIT. Gross profit increased $0.7 million, or 30.4%, to $3.0
million for the 2000 Period from $2.3 million for the 1999 Period as a result
of the increase in net sales and less expensive carbon fiber consumed in the
2000 Period. The Company's gross profit margin decreased to 17.9% in the 2000
Period compared to 21.7% in the 1999 Period as a result of lower average
selling prices for shafts. Gross profit margin was also negatively impacted
in the 2000 Period from the carry over of higher cost inventories from 1999.
The impact of the 1999 higher cost inventories resulted in an approximate 28%
reduction in gross profit reported. Gross profit in the 2000 Period was
impacted positively by a $67,000 adjustment for inventory reserves.
9
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OPERATING INCOME. Operating income increased $1.2 million, or 1865.7%,
to $1.3 million for the 2000 Period from $0.1 million for the 1999 Period,
and increased as a percentage of net sales to 7.9% in the 2000 Period
compared to 0.6% in the 1999 Period. Selling, general and administrative
expense decreased as a percentage of net sales to 11.2% for the 2000 Period
compared to 17.7% for the 1999 Period, primarily as a result of the increase
in net sales. In addition, operating income was positively impacted in the
2000 Period by the recovery of $0.6 million in previously taken plant
consolidation charges.
INCOME (LOSS) BEFORE INCOME TAXES. Income (loss) before income taxes
increased $1.5 million to $1.2 million for the 2000 Period from $(0.3)
million for the 1999 Period. The majority of the increase is attributed to
the increase in operating income. In addition, income (loss) before income
taxes was positively impacted in the 2000 Period by $0.1 million of other-net
income and $38,000 in equity in earnings of CFT.
INCOME TAXES. The Company recorded a provision for income taxes of $0.6
million in the 2000 Period compared to $33,000 in the 1999 Period, which was
primarily as a result of the effect of the Company's non-deductible
amortization of goodwill on the pretax loss.
LIQUIDITY AND CAPITAL RESOURCES
The Company has in place a $12.0 million revolving credit facility from
a financial institution which is secured by substantially all the assets of
Aldila Golf and guaranteed by the Company. Borrowings under the line of
credit bear interest, at the election of the Company, at the bank reference
rate or at the adjusted Eurodollar rate plus 2.5%. Availability for
borrowings under the Line of Credit was approximately $5.5 million as of
March 31, 2000. The Company has $12.0 million in principal amount of senior
notes outstanding which bear interest at 6.13%. Semi-annual principal
payments of $4.0 million, plus accrued interest, are due on March 31 and
September 30 through September 30, 2001.
Cash (including cash equivalents) provided by operating activities in
the 2000 Period was $0.7 million compared to $2.6 million used for operating
activities for the 1999 Period. This increase resulted principally from the
increase in net income and a decrease in cash used for working capital items
in the 2000 Period as compared to the 1999 Period. The Company used $0.1
million for capital expenditures during the 2000 Period. Management
anticipates capital expenditures to approximate $0.7 million for 2000. The
Company may also incur capital expenditures over the next several years to
expand and enhance the production capacity of the CFT operation in Evanston,
Wyoming in order to take advantage of new opportunities brought to CFT and
further reduce production costs for the carbon fiber acquired by the Company,
in addition to an obligation to support one half of CFT's fixed annual cost.
The Company believes that it will have adequate cash resources, including
anticipated cash flow and borrowing availability to meet its obligations at
least through 2001.
The Company may from time to time consider the acquisition of businesses
complementary to the Company's business. The Company could require additional
debt financing if it were to engage in a material acquisition in the future.
10
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SEASONALITY
Because the Company's customers have historically built inventory in
anticipation of purchases by golfers in the spring and summer, the principal
selling season for golf equipment, the Company's operating results have been
affected by seasonal demand for golf clubs, which has generally resulted in
the highest sales occurring in the second quarter. The timing of customers'
new product introductions has frequently mitigated the impact of seasonality
in recent years.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995
With the exception of historical information (information relating to
the Company's financial condition and results of operations at historical
dates or for historical periods), the matters discussed in this Management's
Discussion and Analysis of Financial Condition and Results of Operations are
forward-looking statements that necessarily are based on certain assumptions
and are subject to certain risks and uncertainties. These forward-looking
statements are based on management's expectations as of the date hereof, that
necessarily contain certain assumptions and are subject to certain risks and
uncertainties. The Company does not undertake any responsibility to update
these statements in the future. The Company's actual future performance and
results could differ from that contained in or suggested by these forward
looking statements as a result of a variety of factors.
The Company's Report on Form 10-K for the year ended December 31, 1999 (the
"Form 10-K") presents a more detailed discussion of these and other risks
related to the forward-looking statements in this 10-Q, in particular under
"Business Risks" in Part I, Item 1 of the Form 10-K and Management's
Discussion and Analysis of Financial Condition and Results of Operations" in
Part I, Item 7 of the Form 10-K. The forward-looking statements in this 10-Q
are particularly subject to the risks that
- our principal customers will not continue to increase their orders
over last year;
- our principal customers will be unwilling to satisfy a significant
portion of their demand with shafts manufactured in Mexico or China
instead of with shafts manufactured in the United States;
- we will not achieve success marketing shafts to club assemblers
based in China;
- our international operations will be adversely affected by political
instability, currency fluctuation, export/import regulation and other
risks typical of multi-national operations, particularly those
operating in less developed countries; and
- our joint venture with SGL Carbon Fibers and Composites, Inc. will be
unsuccessful.
11
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PART II - OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
Not applicable.
Item 2. CHANGES IN SECURITIES
Not applicable.
Item 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable
Item 5. OTHER INFORMATION
Not applicable.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibit 11.1 - Statement re: Computation of Net Income per
Common Share
(b) Exhibit 27.1 - Financial Data Schedule
(c) Reports on Form 8-K:
No reports on Form 8-K were filed by the Registrant during
the quarter ended March 31, 2000.
12
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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.
Dated: ALDILA, INC.
May 11, 2000 /s/ Robert J. Cierzan
------------------------------------
Robert J. Cierzan
Vice President, Finance
Signing both in his capacity as
Vice President and as Chief
Accounting Officer of the Registrant
13
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EXHIBIT 11.1
ALDILA, INC. AND SUBSIDIARIES
COMPUTATION OF NET INCOME PER COMMON SHARE - UNAUDITED
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
Three months ended
March 31,
-----------------------------
2000 1999
------------ ------------
<S> <C> <C>
BASIC:
Net income (loss) $ 580 $ (307)
Weighted average number of common shares outstanding 15,462 15,462
------------ ------------
Net income (loss) per common share $ 0.04 $ (0.02)
------------ ------------
------------ ------------
ASSUMING DILUTION:
Net income (loss) $ 580 $ (307)
Weighted average number of common shares outstanding 15,462 15,462
The number of shares resulting from the assumed exercise of
stock options reduced by the number of shares which could
have been purchased with the proceeds from such exercise,
using the average market price during the period 114 -
------------ ------------
Weighted average number of common and
common equivalent shares 15,576 15,462
------------ ------------
Net income (loss) per common share, assuming dilution $ 0.04 $ (0.02)
------------ ------------
------------ ------------
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S REPORT ON FORM 10-Q FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2000 AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 5,068
<SECURITIES> 0
<RECEIVABLES> 7,654
<ALLOWANCES> 0
<INVENTORY> 9,336
<CURRENT-ASSETS> 26,763
<PP&E> 10,327
<DEPRECIATION> 0
<TOTAL-ASSETS> 102,901
<CURRENT-LIABILITIES> 13,849
<BONDS> 4,000
0
0
<COMMON> 155
<OTHER-SE> 78,574
<TOTAL-LIABILITY-AND-EQUITY> 102,901
<SALES> 16,713
<TOTAL-REVENUES> 16,713
<CGS> 13,727
<TOTAL-COSTS> 15,605
<OTHER-EXPENSES> (209)<F1>
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 288
<INCOME-PRETAX> 1,204
<INCOME-TAX> 624
<INCOME-CONTINUING> 580
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 580
<EPS-BASIC> 0.04
<EPS-DILUTED> 0.04
<FN>
<F1>GOODWILL AMORTIZATION - 357 PLANT CONSOLIDATION - (566)
</FN>
</TABLE>
