<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 1, 1997
[_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 0-21838
INDUSTRIAL SCIENTIFIC CORPORATION
(Exact name of registrant as specified in its charter)
PENNSYLVANIA 25-1481281
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1001 OAKDALE ROAD, OAKDALE, PA 15071
(Address of principal executive offices) Zip Code
412-788-4353
(Registrant's telephone number, including area code)
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 December 12, 1997, there were 3,375,089 shares of Common Stock, par value
$.01 per share of the Registrant's common stock outstanding.
<PAGE>
INDUSTRIAL SCIENTIFIC CORPORATION AND SUBSIDIARIES
INDEX
-----
<TABLE>
<CAPTION>
Page No.
-------
<S> <C>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
Condensed Consolidated Balance Sheet -
November 1, 1997 and January 25, 1997. 3
Condensed Consolidated Statement of Income -
Three months and Nine months ended
November 1, 1997 and October 26, 1996. 4
Condensed Consolidated Statement of Cash Flows -
Nine months ended November 1, 1997 and
October 26, 1996. 5
Notes to Condensed Consolidated Financial Statements. 6
Item 2. Management's Discussion and Analysis of Results
of Operations and Financial Condition. 8
Item 3. Quantitative and Qualitative Disclosure about
Market Risk Sensitive Instruments. 11
Part II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K. 12
</TABLE>
2
<PAGE>
PART 1. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
INDUSTRIAL SCIENTIFIC CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands, except share data)
<TABLE>
<CAPTION>
November 1, January 25,
1997 1997
------------- ------------
(Unaudited) **
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 3,339 $ 6,879
Short-term investments 12,911 12,380
------------- ------------
16,250 19,259
Accounts receivable, net 5,411 4,791
Inventories 4,005 3,159
Prepaid expenses and other assets 669 335
Deferred income taxes 605 520
------------- ------------
Total current assets 26,940 28,064
Long-term investments 6,890 1,071
Property, plant, and equipment, at cost 14,793 13,596
Less accumulated depreciation and amortization 7,193 6,218
------------- ------------
7,600 7,378
Land 390 390
Intangible assets, net 253 2,149
Other assets 716 166
------------- ------------
Total assets $42,789 $39,218
============= ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,172 $ 1,860
Accrued payroll and related items 1,200 997
Accrued warranty expenses 721 583
Income taxes payable 282 57
Current portion of term debt 370 370
------------- ------------
Total current liabilities 4,745 3,867
Term debt 3,815 4,142
Deferred income taxes ---- 92
------------- ------------
Total liabilities 8,560 8,101
Shareholders' equity:
Preferred stock, without par value; authorized
1,000,000 shares; none issued ---- ----
Common stock, $.01 par value; authorized 15,000,000
shares; issued and outstanding 3,375,089 shares and
3,375,087 at 11/1/97 and at 1/25/97 34 34
Additional paid-in capital 5,471 5,471
Retained earnings 30,078 25,791
Dividends paid (270)
Treasury stock, 60,400 shares at 11/1/97 and
11,800 shares at 1/25/97, at cost (1,084) (179)
------------- ------------
Total shareholders' equity 34,229 31,117
------------- ------------
Total liabilities and shareholders' equity $42,789 $39,218
============= ============
</TABLE>
** - Summarized from audited January 25, 1997 balance sheet.
The accompanying notes are an integral part of the condensed consolidated
financial statements.
3
<PAGE>
INDUSTRIAL SCIENTIFIC CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(Unaudited, in thousands except share data)
<TABLE>
<CAPTION>
For the three months ended For the nine months ended
November 1, October 26, November 1, October 26,
1997 1996 1997 1996
----------- ----------- ----------- ------------
<S> <C> <C> <C> <C>
Net sales $10,236 $8,656 $30,449 $27,089
Cost of goods sold 4,501 3,770 13,523 12,368
----------- ----------- ----------- ------------
Gross profit 5,735 4,886 16,926 14,721
Operating expenses:
Selling 2,216 1,727 6,732 5,479
Research, development and
engineering 798 883 2,287 2,768
Administrative 800 752 2,583 2,321
----------- ----------- ----------- ------------
Total operating expenses 3,814 3,362 11,602 10,568
----------- ----------- ----------- ------------
Operating profit 1,921 1,524 5,324 4,153
Interest income 280 199 744 588
Interest expense (41) (44) (126) (145)
Other income/(expense) --- (10) 20 (27)
Gain on sale of Monitor Group --- --- 580 ---
----------- ----------- ----------- ------------
Income before income taxes 2,160 1,669 6,542 4,569
Provision for income taxes 721 605 2,255 1,590
----------- ----------- ----------- ------------
Net income $ 1,439 $1,064 $ 4,287 $ 2,979
=========== =========== =========== ============
Net income per common share $0.43 $0.31 $1.28 $0.88
=========== =========== =========== ============
Weighted average number of
common and common
equivalent shares outstanding 3,330 3,375 3,348 3,377
=========== =========== =========== ============
</TABLE>
The accompanying notes are an integral part of the condensed consolidated
financial statements.
4
<PAGE>
INDUSTRIAL SCIENTIFIC CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited, in thousands)
<TABLE>
<CAPTION>
For the nine months ended
November 1, October 26,
1997 1996
----------- -----------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 4,287 $ 2,979
Depreciation, amortization and other non-cash items 1,107 1,196
Gain on sale of Monitor Group (580) ---
Changes in operating assets and liabilities (1,413) (77)
---------- ---------
Net cash provided by operating activities 3,401 4,098
Cash flows from investing activities:
Purchase of investments (15,708) (7,820)
Proceeds from maturities of investments 9,358 3,073
Capital expenditures (1,347) (359)
Investment in equity joint venture (241) (267)
Acquisition of McNeill Systems --- (310)
Proceeds from sale of Monitor Group 2,500 ---
---------- ---------
Net cash used in investing activities (5,438) (5,683)
Cash flows from financing activities:
Principal payments on debt (327) (572)
Treasury stock repurchased (906) ---
Dividends paid (270) ---
---------- ---------
Net cash used in financing activities (1,503) (572)
Net decrease in cash and cash equivalents (3,540) (2,157)
Cash and cash equivalents at beginning of period 6,879 7,485
---------- ---------
Cash and cash equivalents at end of period $ 3,339 $ 5,328
========== =========
</TABLE>
The accompanying notes are an integral part of the condensed consolidated
financial statements.
5
<PAGE>
INDUSTRIAL SCIENTIFIC CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(1) Management's Discussion and Analysis of Results of Operations and
Financial Condition which follows these notes contains additional
information on the results of operations and the financial position of
the Company. These comments should be read in conjunction with the
notes.
(2) In the opinion of management, all adjustments, (consisting only of
normal and recurring adjustments), necessary for a fair presentation
of the results of the operations of these interim periods have been
included.
(3) The Company's investments are in investment grade debt securities that
it has the positive intent and ability to hold to maturity and are
carried at amortized cost. These investments in debt securities
exceeded market value by approximately $79,000 and $76,000 at November
1, 1997 and January 25, 1997, respectively.
(4) Inventories consisted of:
<TABLE>
<CAPTION>
November 1, January 25,
1997 1997
(in thousands)
---------- ----------
<S> <C> <C>
At standard costs, which approximate
first-in, first-out cost:
Raw materials $3,228 $2,690
Work in process 643 383
Finished goods 293 245
------ ------
4,164 3,318
Less LIFO reserves 159 159
------ ------
Inventories at LIFO value $4,005 $3,159
====== ======
</TABLE>
continued
6
<PAGE>
(5) The effective tax rate of 34.5% for the nine months ended November 1,
1997 is based upon an estimate of the effective rate for the year
ended January 31, 1998. The principal difference between the effective
tax rate and the federal statutory rate is the effect of foreign sales
corporation benefits, research and experimentation credits, and non-
taxable interest benefits, offset by the effect of state and local
income taxes.
(6) Effective January, 1997, the Financial Accounting Standard Board
(FASB) issued Statement of Financial Accounting Standard (SFAS) No.
128, "Earnings Per Share." The standard is effective for the period
ending after December 15, 1997. SFAS No. 128 specifies the
computation, presentation and disclosure requirements for earnings per
share. The effect of this statement will not be material to the
financial statements. Effective June, 1997, the FASB issued No.131,
"Disclosures about Segments of an Enterprise and Related Information."
The standard is effective for the period ending after December 15,
1997. SFAS No. 131 specifies reporting requirements for operating
segments. Management is currently evaluating the impact of this
statement on future disclosures.
(7) Non-operating income/expense during the nine month period ended
November 1, 1997 includes a gain on the sale of Monitor Group. The
Company completed the sale of its Monitor Group business unit to L.B.
Foster Company on May 7, 1997 for $2,500,000 resulting in a gain of
approximately $580,000.
7
<PAGE>
Part 1. FINANCIAL INFORMATION
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL CONDITION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
The following discussion should be read in conjunction with the attached
unaudited condensed consolidated financial statements and notes thereto for the
periods ended November 1, 1997, and October 26, 1996, and with the Company's
audited financial statements and notes thereto for the fiscal year ended January
25, 1997.
Results of Operations
Quarter ended November 1, 1997, Compared to Quarter Ended October 26, 1996
Net sales for the quarter ended November 1, 1997, ("third quarter 1997") totaled
$10.2 million, an increase of 18.3% from net sales of $8.7 million for the
quarter ended October 26, 1997 ("third quarter 1996"). Sales increases in both
North America and international markets were primarily due to increased
promotional activities and new product introductions.
Gross profit increased $849,000 or 17.4% to $5.7 million for the third quarter
1997 compared to $4.9 million for the third quarter 1996. Gross profit as a
percent of sales declined slightly to 56.0% for the third quarter 1997 compared
to 56.5% for the third quarter 1996. Increased production efficiency was offset
by moderate price discounts in competitive situations.
Operating expenses increased $452,000 or 13.4% to $3.8 million for the third
quarter 1997 compared to $3.4 million for the third quarter 1996. Selling
expense increased $489,000 or 28.3% due to start-up marketing costs associated
with fixed system products which the Company acquired in October 1996,
continuing efforts to increase sales outside North America and increased
commission expense related to higher sales volume. Research, development and
engineering expense decreased $85,000 or 9.6% to $798,000 for the third quarter
1997 compared to $883,000 for the third quarter 1996. Increased new product
development was more than offset by the reduction in expense caused by the sale
of Monitor Group in the second quarter 1997. Excluding the impact of the sale
of Monitor Group, research, development and engineering expense increased 35.3%.
Administrative expense increased $48,000 or 6.4% to $800,000 for the third
quarter 1997 compared to $752,000 for the third quarter 1996. Increases in
performance-related compensation principally account for this increase.
8
<PAGE>
Interest income totaled $280,000 for the third quarter 1997, an increase of
$81,000 compared to $199,000 for the third quarter 1996. Generally higher
invested cash balances and interest rates account for this increase. Interest
expense declined due to reduced debt balances resulting from principal payments
on outstanding loans. Income from the Company's joint venture in Saudi Arabia
was offset by start-up costs associated with the establishment of the Company's
joint venture in China which resulted in no other income reported for the third
quarter 1997, compared to $10,000 for the third quarter 1996.
The effective tax rate for the third quarter 1997 decreased to 33.4% compared to
36.2% for the third quarter 1996 principally due to increased non-taxable
interest income and research and experimentation tax credits.
Net income for the third quarter 1997 totaled $1.4 million or $0.43 per share,
an increase of 35.1% compared to $1.1 million or $0.31 for the third quarter
1996.
Results of Operations
Nine Months Ended November 1, 1997, Compared to Nine Months Ended
October 26, 1996
Net sales for the nine months ended November 1, 1997, totaled $30.4 million, an
increase of $3.4 million or 12.4% compared to net sales of $27.1 million for the
nine months ended October 26, 1996. Increased sales in North America, resulting
from increased sales efforts and new products were partially offset by a decline
in international sales. The nine months ended October 26, 1996, included $2.0
million in sales to the Company's joint venture partner in Saudi Arabia as part
of a long-term exclusive supply agreement.
Gross profit increased 17.4% to $5.7 million for the nine months ended November
1, 1997, compared to $4.9 million for the nine months ended October 26, 1996.
Gross profit as a percent of net sales also increased to 55.6% for the nine
months ended November 1, 1997, compared to 54.3% for the prior period. This
increase in gross profit percent is principally due to lower than average gross
profit realized during the nine months ended October 26, 1996, on sales relating
to the long-term supply agreement due to competitive price negotiation.
Increased sales of replacement parts in 1997, which generally earn a higher than
average gross profit percentage also contributed to the increased gross profit
for the period.
Operating expenses increased $1.0 million or 9.8% to $11.6 million for the nine
months ended November 1, 1997, compared to $10.6 million for the comparable 1996
period. Selling expense increased $1.3 million or 22.9% due to increased
marketing efforts both in North America and internationally, increased
commission and other volume related expenses and start-up marketing costs
associated with fixed system products which the Company acquired in October
1996. Research, development and engineering expense decreased $481,000 or 17.4%
as increased new product development efforts and resulting increased expense
levels were more than offset by the reduction caused by the sale of Monitor
Group in the second quarter 1997. Excluding the impact of the sale of Monitor
Group, research development and engineering expense increased 20.5%.
Administrative expense increased 11.3% or $262,000, primarily due to increased
profit sharing and incentive compensation
9
<PAGE>
resulting from the Company's performance in the nine month period ended November
1, 1997.
Interest income increased $156,000 or 26.5% for the nine months ended November
1, 1997, due to higher investment amounts resulting from positive cash flow and
generally higher interest rates. Interest expense decreased due to lower
outstanding debt balances resulting from continuing principal payments. Other
income consists of the Company's equity earnings in Industrial Scientific Arabia
Ltd., a minority owned subsidiary. The gain on sale of $580,000 is from the sale
of Monitor Group, a developer of portable mass spectrometers which the Company
had acquired in 1995 and sold in the second quarter 1997.
The effective tax rate for the nine months ended November 1, 1997, was 34.5 %
basically equal to the effective rate of 34.8% for the nine months ended October
26, 1996.
Net income for the nine months ended November 1, 1997, totaled $4.3 million or
$1.28 per share, an increase of 43.9% over net income of $3.0 million or $0.88
per share for the nine months ended October 26, 1996.
Liquidity and Capital Resources
Cash flow from operations totaled $3.4 million for the nine months ended
November 1, 1997, compared to $4.1 million for the comparable 1996 period.
Increased net income was offset by increased cash needed to support increased
levels of inventory and accounts receivable relating to higher sales volume.
Capital expenditures totaled $1.3 million for the nine months ended November 1,
1997, compared to $359,000 for the comparable 1996 period. Capital expenditures
in the 1997 period primarily consisted of manufacturing and test equipment to
improve quality and reduce costs, computers and related software to increase
efficiency, and a new phone system. In October 1997, the Company invested
$241,000 in exchange for a 50% interest in the previously announced joint
venture, HEG Industrial Scientific, based in Harbin China. In June 1997, the
Company completed the previously announced sale of Monitor Group for $2.5
million in cash which resulted in a gain of $580,000. During the nine months
ended November 1, 1997, the Company used $906,000 to repurchase shares of its
stock under the previously announced stock repurchase plan. Dividends totaling
$270,000 were paid during the period.
Working capital totaled $21.8 million as of November 1, 1997, compared to $24.2
million as of January 27, 1997, a decrease of $2.4 million, primarily resulting
from a lengthening in the maturities of the Company's investments to increase
interest income which increased long-term investments and decreased working
capital. The Company believes that its cash flow and capital structure provide
adequate flexibility to support the growth of operations and funding capital
spending programs.
10
<PAGE>
Part 1. FINANCIAL INFORMATION
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK SENSITIVE
INSTRUMENTS
The Company currently does not invest excess funds in derivative
financial instruments or other market risk sensitive instruments for
the purpose of managing its foreign currency exchange rate risk or for
any other purpose.
11
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Nothing to report under this item.
ITEM 2. CHANGES IN SECURITIES
Nothing to report under this item.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Nothing to report under this item.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Nothing to report under this item.
ITEM 5. OTHER INFORMATION
Nothing to report under this item.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits.
27.00 Financial Data Schedule. Filed herewith.
99.01 Press release announcing a fourth quarter
dividend of four cents ($.04) per share
dated November 12, 1997. Filed herewith.
99.02 Press release announcing fiscal year 1997
third quarter results dated November 20, 1997. Filed herewith.
(b) Reports on Form 8-K.
None.
12
<PAGE>
SIGNATURE
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.
Industrial Scientific Corporation
(Registrant)
Date: December 12, 1997
By : /s/ James P. Hart
-------------------------------------------------
James P. Hart
Vice-President and Chief Financial Officer
(Principal Financial Officer and Principal
Accounting Officer and an authorized signatory)
13
<PAGE>
EXHIBIT INDEX
-------------
<TABLE>
<CAPTION>
Sequential Page Number
Exhibit No. or Reference
----------- ------------
<S> <C>
27.0 Financial Statement Data. Filed herewith at page 15.
99.01 Press release announcing a fourth quarter
dividend of four cents($.04) per share
dated November 12, 1997. Filed herewith at page 16.
99.02 Press release announcing fiscal year 1997
third quarter results dated November 20, 1997. Filed herewith at page 17.
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-31-1998
<PERIOD-START> JAN-26-1997
<PERIOD-END> NOV-01-1997
<CASH> 3,339,313
<SECURITIES> 12,910,576
<RECEIVABLES> 5,411,670
<ALLOWANCES> 95,669
<INVENTORY> 4,005,023
<CURRENT-ASSETS> 26,940,006
<PP&E> 14,792,842
<DEPRECIATION> 7,192,955
<TOTAL-ASSETS> 42,789,105
<CURRENT-LIABILITIES> 4,752,791
<BONDS> 3,815,496
0
0
<COMMON> 33,751
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 42,789,105
<SALES> 10,235,816
<TOTAL-REVENUES> 10,235,816
<CGS> 4,500,984
<TOTAL-COSTS> 8,314,233
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 41,041
<INCOME-PRETAX> 2,159,668
<INCOME-TAX> 721,000
<INCOME-CONTINUING> 1,438,668
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,438,668
<EPS-PRIMARY> .43
<EPS-DILUTED> .43
</TABLE>
<PAGE>
Exhibit 99.01
[LETTERHEAD APPEARS HERE]
Date: November 12, 1997
Release: Immediate
Contact: James P. Hart, Vice President Finance
Chief Financial Officer
412-490-1843
INDUSTRIAL SCIENTIFIC CORPORATION ANNOUNCES
FOURTH QUARTER DIVIDEND OF FOUR CENTS ($.04) PER SHARE
PITTSBURGH, PA -- Industrial Scientific Corporation (NASDAQ/NM symbol: ISCX )
today announced that the Board of Directors declared a dividend of Four Cents a
share ($.04) payable on December 1, 1997, to stockholders on record as of
November 23, 1997.
Headquartered in Oakdale, Pennsylvania, Industrial Scientific Corporation
designs, manufactures and sells gas monitoring instruments, systems and other
technical products for the preservation of life and property.
<PAGE>
Exhibit 99.02
[LETTERHEAD OF INDUSTRIAL SCIENTIFIC CORPORATION]
Date: November 20, 1997
Release: Immediately
Contact: James P. Hart, Vice President Finance
Chief Financial Officer 412-490-1843
INDUSTRIAL SCIENTIFIC CORPORATION
ANNOUNCES RECORD 1997 THIRD QUARTER RESULTS
PITTSBURGH, PA-- November 20, 1997 -- Industrial Scientific Corporation
(NASDAQ/NMS symbol: ISCX) today reported record results for the third quarter
ended November 1, 1997.
Net income for the third quarter 1997 was $1,439,000 or $0.43 per share, an
increase of 35.2% compared to $1,064,000 or $0.31 per share for the third
quarter 1996. This is the highest quarterly net income ever achieved by the
Company except for the second quarter 1997 which included a $377,000 non-
recurring gain from the sale of Monitor Group. Net sales for the third quarter
1997 totaled $10,236,000 an increase of 18.3% from $8,656,000 for the third
quarter 1996.
Net income for the nine-months ended November 1, 1997, was $4,287,000 or $1.28
per share, an increase of 43.9% over net income of $2,979,000 or $0.88 per share
for the nine-months ended October 26, 1996. As stated above, the nine-months
ended November 1, 1997, included the non-recurring gain on the sale of Monitor
Group which totaled $377,000. Net income excluding this gain increased 31.3% to
$3,910,000. Net sales for the nine-months ended November 1, 1997, increased
12.4% to $30,449,000 compared to $27,089,000 for the nine-months ended October
26, 1996.
Kent D. McElhattan, President and CEO, stated, "Strong financial performance
continued through the third quarter of 1997. Record net income was achieved
when you exclude the gain on the sale of Monitor Group from the second quarter
1997. Year-to-date sales growth of 12.4% is even more impressive when you
consider that 1996 included over two million dollars in sales to our joint
venture partner in Saudi Arabia. Although we anticipate significant future
sales, the nine-months ended November 1, 1997, included very little sales to
this part of the world. Development of the ATX612 Multi-Gas Aspirated Monitor
and the ATX620 Multi-Gas Utility Monitor with patented Infrared Methane
detection was completed during the quarter and shipments of these models have
begun."
Headquartered in Oakdale, Pennsylvania, Industrial Scientific Corporation
designs, manufactures and sells gas monitoring instruments, systems and other
technical products for the preservation of life and property.
<PAGE>
INDUSTRIAL SCIENTIFIC CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statement of Operations
(Unaudited)
(In thousands, except share amounts)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
11/01/97 10/26/96 11/01/97 10/26/96
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net Sales $10,236 $8,656 $30,449 $27,089
Gross profit 5,735 4,886 16,926 14,721
Operating profit 1,921 1,524 5,324 4,153
Net income 1,439 1,064 4,287 2,979
Net income per common share $0.43 $0.31 $1.28 $0.88
Weighted average number of
common and common equivalent shares
outstanding 3,330 3,375 3,348 3,377
</TABLE>
