U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10-QSB
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE TWELVE WEEKS ENDED JULY 6, 1996
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE TRANSITION PERIOD FROM __________ TO ____________
Commission file number 1-12340
GREEN MOUNTAIN COFFEE, INC.
(Exact name of small business issuer as specified in its charter)
Delaware 36-3463683
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
33 Coffee Lane, Waterbury, Vermont 05676
(Address of principal executive offices)
(802) 244-5621
(Issuer's telephone number)
(Former name, former address and former fiscal year,
if changed since last report)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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 August 6, 1996, 3,399,795 shares of common stock of the registrant were
outstanding.
Transitional Small Business Disclosure Format (check one):
YES [ ] NO [X]
<PAGE>
<TABLE>
Part I. Financial Information
Item I. Financial Statements
Green Mountain Coffee, Inc.
Consolidated Balance Sheet
(Dollars in thousands except share data)
<CAPTION>
July 6, 1996 Sept. 30, 1995
____________ ______________
<S> <C> <C>
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $ 496 $ 310
Receivables, less allowances of
$80 at July 6, 1996 and
$63 at Sept. 30, 1995 2,259 2,660
Inventories 2,673 2,766
Other current assets 434 377
Deferred income taxes, net 71 115
---------- ----------
Total current assets 5,933 6,228
Fixed assets, net 8,455 8,127
Other assets, net 358 235
Deferred income taxes, net 856 975
---------- ----------
Total assets $ 15,602 $ 15,565
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 839 $ 618
Current portion of obligation under
capital lease 110 68
Revolving line of credit 325 1,720
Accounts payable 2,440 2,751
Accrued payroll 353 170
Accrued expenses 231 156
---------- ----------
Total current liabilities 4,298 5,483
---------- ----------
Long-term debt 2,682 2,351
---------- ----------
Obligation under capital lease 174 209
---------- ----------
Commitments
Stockholders' equity:
Common stock, $0.10 par value:
Authorized - 10,000,000 shares;
issued and outstanding-
3,399,795 shares at July 6, 1996
and September 30, 1995 340 340
Additional paid-in capital 12,421 12,421
Accumulated deficit (4,313) (5,239)
---------- ----------
Total stockholders' equity 8,448 7,522
Total liabilities and
stockholders equity $ 15,602 $ 15,565
---------- ----------
<FN>
The accompanying Notes to Consolidated Financial Statements are
an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
Green Mountain Coffee, Inc.
Consolidated Statement of Operations
(Dollars in thousands except share data)
<CAPTION>
Twelve weeks ended
July 6, 1996 July 1, 1995
------------ ------------
(unaudited)
<S> <C> <C>
Net sales $ 8,617 $ 7,459
Cost of sales 5,121 4,829
---------- ----------
Gross profit 3,496 2,630
Selling and operating expenses 2,503 2,135
General and administrative expenses 735 571
---------- ----------
Income (loss) from operations 258 (76)
Other income (expense) 6 (3)
Interest expense (89) (107)
---------- ----------
Income (loss) before income taxes 175 (186)
Income tax benefit (expense) (26) 55
---------- ----------
Net income (loss) $ 149 $ (131)
---------- ----------
Net income (loss) per share $ .04 $ (.04)
---------- ----------
Weighted average shares outstanding 3,427,682 3,383,485
---------- ----------
<FN>
The accompanying Notes to Consolidated Financial Statements are
an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
Green Mountain Coffee, Inc.
Consolidated Statement of Operations
(Dollars in thousands except share data)
<CAPTION>
Forty weeks ended
July 6, 1996 July 1, 1995
------------ ------------
(unaudited)
<S> <C> <C>
Net sales $ 28,880 $ 25,223
Cost of sales 17,229 16,394
---------- ----------
Gross profit 11,651 8,829
Selling and operating expenses 7,888 7,187
General and administrative expenses 2,334 1,919
---------- ----------
Income (loss) from operations 1,429 (277)
Other expense (5) (2)
Interest expense (335) (298)
---------- ----------
Income (loss) before income taxes 1,089 (577)
Income tax benefit (expense) (163) 127
---------- ----------
Net income (loss) $ 926 $ (450)
---------- ----------
Net income (loss) per share $ 0.27 $ (0.13)
---------- ----------
Weighted average shares outstanding 3,427,592 3,383,485
---------- ----------
<FN>
The accompanying Notes to Consolidated Financial Statements are
an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
Green Mountain Coffee, Inc.
Consolidated Statement of Cash Flows
(Dollars in thousands)
<CAPTION>
Forty weeks ended
July 6, 1996 July 1, 1995
------------ ------------
(unaudited)
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 926 $ (450)
Adjustments to reconcile net
income (loss) to net cash
provided by (used for)
operating activities:
Depreciation and amortization 1,517 1,227
Loss on disposals of fixed assets 28 14
Provision for doubtful accounts 106 83
Decrease (increase) in long-term
deferred income taxes 119 (72)
Increase in other assets (138) (2)
Changes in working capital:
Receivables 295 (803)
Inventories 93 (197)
Other current assets (57) (286)
Deferred income taxes 44 (36)
Accounts payable (311) 451
Accrued payroll 183 2
Accrued expenses 75 (44)
---------- ----------
Net cash provided by (used for)
operating activities: 2,880 (113)
---------- ----------
Cash flows from investing activities:
Expenditures for fixed assets (1,730) (1,193)
Proceeds from disposals of fixed assets 52 -
---------- ----------
Net cash used for investing
activities: (1,678) (1,193)
---------- ----------
Cash flows from financing activities:
Proceeds from issuance of long-term debt 1,009 286
Repayment of long-term debt (566) (460)
Net change in revolving line of credit (1,395) 1,704
Repayment of note payable to stockholder - (416)
Principal payments under capital lease
obligation (64) -
Net cash provided by (used for)
financing activities (1,016) 1,114
---------- ----------
Net increase (decrease) in cash and
cash equivalents 186 (192)
Cash and cash equivalents at beginning
of period 310 553
---------- ----------
Cash and cash equivalents at end of period $ 496 361
---------- ----------
<FN>
The accompanying Notes to Consolidated Financial Statements are
an integral part of these financial statements.
</TABLE>
<PAGE>
Green Mountain Coffee, Inc.
Notes to Consolidated Financial Statements
1. Basis of Presentation
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-QSB
and Item 310(b) of Regulation S-B. Accordingly, they do not include all of
the information and footnotes required by generally accepted accounting
principles for complete consolidated financial statements.
In the opinion of management, all adjustments (consisting solely of normal
recurring adjustments) considered necessary for a fair statement of the
interim financial data have been included. Results from operations for the
twelve and forty-week periods ended July 6, 1996 are not necessarily
indicative of the results that may be expected for the fiscal year ending
September 28, 1996.
For further information, refer to the consolidated financial statements and
the footnotes included in the annual report on Form 10-KSB for Green Mountain
Coffee, Inc. for the year ended September 30, 1995.
Net income (loss) per share is computed based upon the weighted average
number of common and dilutive common equivalent shares outstanding during the
period.
2. Income Taxes
The Company recognizes deferred tax assets and liabilities for the expected
future tax consequences of events that have been recognized in the Company's
financial statements or tax returns. In estimating future tax consequences,
generally all expected future events other than enactments of changes in the
tax law or rates are considered. Gross deferred tax assets were $1,871,000
and $2,315,000 at July 6, 1996 and September 30, 1995, respectively, and the
Company has established deferred tax asset valuation allowances of $944,000
and $1,225,000, respectively, at the same dates. The net deferred tax assets
were $927,000 and $1,090,000 at July 6, 1996 and September 30, 1995,
respectively.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Results of Operations
General
- - -------
For the forty weeks ended July 6, 1996, Green Mountain Coffee, Inc. (the
"Company" or "Green Mountain") derived approximately 78.2% of its net sales
from its wholesale operation. Green Mountain's wholesale operation sells
coffee to retailers and food service concerns including supermarkets,
restaurants, convenience stores, specialty food stores, hotels, universities
and business offices. The Company also operated twelve retail stores and a
direct mail operation, which accounted for approximately 13.4% and 8.4% of
net sales, respectively, during the same period.
Cost of sales consists of the cost of raw materials including coffee beans,
flavorings and packaging materials, a portion of the Company's rental
expense, the salaries and related expenses of production, distribution and
delivery personnel, depreciation on production equipment and freight and
delivery expenses. Selling and operating expenses consist of expenses that
directly support the sales of the Company's wholesale, retail or direct mail
channels, including marketing and advertising expenses, a portion of the
Company's rental expense, and the salaries and related expenses of employees
directly supporting sales. General and administrative expenses consist of
expenses incurred for corporate support and administration, including a
portion of the Company's rental expense and the salaries and related expenses
of personnel not elsewhere categorized.
The Company's fiscal year ends on the last Saturday in September. The
Company's fiscal year normally consists of 13 four-week periods with the
first, second and third "quarters" ending 16 weeks, 28 weeks and 40 weeks,
respectively, into the fiscal year. Fiscal 1995, which began on September
25, 1994 and ended on September 30, 1995, consisted of 53 weeks with the
fiscal fourth quarter having 13 weeks instead of the normal 12 weeks.
This document may include forward-looking statements about the Company's
revenues and earnings and future plans and objectives. Any such statements
are subject to risks and uncertainties that could cause the actual results to
vary materially. These risks include, but are not limited to, business
conditions in the coffee industry and food industry in general, fluctuations
in availability and cost of green coffee, economic conditions, competition,
weather and special or unusual events.
Twelve weeks ended July 6, 1996 versus twelve weeks ended July 1, 1995
- - ----------------------------------------------------------------------
Net sales increased by $1,158,000 or 15.5% from $7,459,000 for the twelve
weeks ended July 1, 1995 (the "1995 period") to $8,617,000 for the twelve
weeks ended July 6, 1996 (the "1996 period"). Coffee pounds sold, excluding
those sold as beverages through the Company's retail stores, increased by
approximately 24% from the 1995 period to the 1996 period. The difference
between the net sales percentage increase and the coffee pounds sold
percentage increase primarily reflects reductions in Green Mountain's coffee
sales prices during fiscal 1996 as a result of lower green coffee costs.
The 1995 period to 1996 period increase in net sales is attributable to the
wholesale area in which net sales increased by $1,244,000 or 21.6% from
$5,753,000 for the 1995 period to $6,997,000 for the 1996 period. This
increase resulted primarily from the year-over-year growth in the number of
wholesale customer accounts.
Retail net sales increased by $6,000 or 0.6% from $1,029,000 for the 1995
period to $1,035,000 for the 1996 period. This increase was achieved despite
the closing on December 15, 1995 of an espresso cart located in Albany, New
York. Net sales in the direct mail area decreased by $92,000 or 13.6% from
$677,000 for the 1995 period to $585,000 for the 1996 period. The decrease in
direct mail sales resulted primarily from a shift in strategy whereby the
Company focused its mail order solicitations on catalog customers who more
regularly buy from the Company, and decreased the number of low-margin
product promotions.
Green Mountain's gross profit increased by $866,000 or 32.9% from $2,630,000
for the 1995 period to $3,496,000 for the 1996 period. This increase was due
primarily to an increase in sales. Gross profit increased by 5.3 percentage
points as a percentage of sales from 35.3% for the 1995 period to 40.6% for
the 1996 period. This increase was due primarily to the impact of lower
green coffee costs.
Selling and operating expenses increased by $368,000 or 17.2% from $2,135,000
for the 1995 period to $2,503,000 for the 1996 period and increased by .4
percentage points as a percentage of sales from 28.6% for the 1995 period to
29.0% for the 1996 period. The increase in selling and operating expense
includes approximately $161,000 in expenses related to the addition in fiscal
1996 of a national supermarket sales manager and eight people to the
Company's direct sales force in the Boston, Connecticut and Florida markets,
as well as the addition of an advertising manager and designer to the
Company's corporate marketing department. Management believes that without
these investments in future growth, selling and operating expenses as a
percentage of sales would be decreased 1.4 percentage points instead of
increasing .4 percentage points.
General and administrative expenses increased by $164,000 or 28.7% from
$571,000 for the 1995 period to $735,000 for the 1996 period and increased by
.8 percentage points as a percentage of sales from 7.7% for the 1995 period
to 8.5% for the 1996 period. General and administrative expense increases
for the 1996 period reflect the addition of a new trainer to the Company's
human resources department and increased external training materials and
course expenses of approximately $34,000; increased investor relations-
related expenses of approximately $22,000; and increased computer software
upgrades, supplies and software maintenance contract expenses of
approximately $19,000.
As a result of the foregoing, income from operations increased by $334,000
from a loss from operations of $76,000 for the 1995 period to income from
operations of $258,000 for the 1996 period. The income tax benefit
recognized under SFAS 109 was $55,000 for the 1995 period compared to income
tax expense of $26,000 for the 1996 period. Net income increased by $280,000
from a net loss of $131,000 for the 1995 period to net income of $149,000 for
the 1996 period.
Forty weeks ended July 6, 1996 versus forty weeks ended July 1, 1995
- - --------------------------------------------------------------------
Net sales increased by $3,657,000 or 14.5% from $25,223,000 for the forty
weeks ended July 1, 1995 (the "1995 YTD period") to $28,880,000 for the forty
weeks ended July 6, 1996 (the "1996 YTD period"). Coffee pounds sold,
excluding those sold as beverages through the Company's retail stores,
increased by approximately 21% from the 1995 YTD period to the 1996 YTD
period. The difference between the net sales percentage increase and the
coffee pounds sold percentage increase primarily reflects reductions in Green
Mountain's coffee sales prices during fiscal 1996 as a result of lower green
coffee costs.
The 1995 YTD period to 1996 YTD period increase in net sales is attributable
to the wholesale area in which net sales increased by $4,025,000 or 21.7%
from $18,549,000 for the 1995 YTD period to $22,574,000 for the 1996 YTD
period. The wholesale net sales increase resulted primarily from the year-
over-year growth in the number of wholesale customer accounts.
Retail net sales decreased by $58,000 or 1.5% from $3,932,000 for the 1995
YTD period to $3,874,000 for the 1996 YTD period principally due to the
closing during the second quarter of fiscal 1995 of three espresso carts
located at supermarkets, and the closing on December 15, 1995 of an espresso
cart located in Albany, New York. The three supermarket locations were
converted to wholesale supermarket accounts with pre-bagged, bulk and/or
self-service coffee beverage displays. Net sales in the direct mail area
decreased by $310,000 or 11.3% from $2,742,000 for the 1995 YTD period to
$2,432,000 for the 1996 YTD period primarily due to the shift in strategy
during the 1996 YTD period discussed above.
Green Mountain's gross profit increased by $2,822,000 or 32.0% from
$8,829,000 for the 1995 YTD period to $11,651,000 for the 1996 YTD period.
This increase was due primarily to an increase in sales. Gross profit
increased by 5.3 percentage points as a percentage of sales from 35% for
the 1995 YTD period to 40.3% for the 1996 YTD period. This increase was due
primarily to the impact of lower green coffee costs.
Selling and operating expenses increased by $701,000 or 9.8% from $7,187,000
for the 1995 YTD period to $7,888,000 for the 1996 YTD period. However,
selling and operating expenses decreased by 1.2 percentage points as a
percentage of sales from 28.5% for the 1995 YTD period to 27.3% for the 1996
YTD period.
General and administrative expenses increased by $415,000 or 21.6% from
$1,919,000 for the 1995 YTD period to $2,334,000 for the 1996 YTD period and
increased by .5 percentage points as a percentage of sales from 7.6% for the
1995 YTD period to 8.1% for the 1996 YTD period. General and administrative
expenses incurred by the Company during the first quarter of fiscal 1995
reflect the effect of certain cost containment measures in place at that time.
As a result of the foregoing, income from operations increased by $1,706,000
from a loss from operations of $277,000 for the 1995 YTD period to income
from operations of $1,429,000 for the 1996 YTD period. The income tax
benefit recognized under SFAS 109 was $127,000 for the 1995 YTD period
compared to income tax expense of $163,000 for the 1996 YTD period. Net
income increased by $1,376,000 from a net loss of $450,000 for the 1995 YTD
period to net income of $926,000 for the 1996 YTD period.
Liquidity and Capital Resources
- - -------------------------------
The Company had working capital of $1,635,000 and $745,000 at July 6, 1996
and September 30, 1995, respectively. The Company had net cash provided by
operating activities of $2,880,000 in the 1996 YTD period and net cash used
for operating activities of $113,000 in the 1995 YTD period, a $2,993,000
improvement. The net cash provided by operating activities in the 1996 YTD
period resulted primarily from the Company's improved profitability during
the period.
The Company had net cash used for financing activities of $1,016,000 in the
1996 YTD period, and net cash provided by financing activities of $1,114,000
in the 1995 YTD period.
The combined net cash provided by operating and financing activities was used
primarily to fund expenditures for fixed assets. During the 1996 YTD period,
Green Mountain had capital expenditures of $1,730,000 (net of $180,000
financed directly by a capital lease and long-term debt), including $612,000
for equipment on loan to wholesale customers, $438,000 for production
equipment and $376,000 for computer hardware and software. During the 1995
YTD period, Green Mountain had capital expenditures of $1,193,000, including
$609,000 for equipment on loan to wholesale customers, $241,000 for
production equipment and $203,000 for computer hardware and software.
Total currently planned capital expenditures in fiscal 1996 are approximately
$2,400,000, primarily to fund equipment for loan to wholesale customers,
production equipment and computer hardware and software. However, the
Company is constantly reviewing its capital expenditure needs and the actual
amount may increase or decrease from this estimate.
On April 12, 1996, the Company amended its credit facility with Fleet Bank -
NH (Fleet). Under the revised facility, the Company can borrow up to
$1,500,000 under a five-year term promissory note to be repaid in equal
monthly principal installments. The Company drew down $1,000,000 against
such note on April 12, 1996 and drew down the remaining $500,000 on July 31,
1996 subsequent to the end of the 1996 YTD period. The interest rate on all
term debt under the credit facility was reduced to the lesser of the Fleet
base rate (8.25% at July 6, 1996) plus 25 basis points or 275 basis points
above the LIBOR rate for maturities of up to one year.
The rate on the Company's revolving line of credit under the Fleet credit
facility was also reduced to the lesser of the Fleet base rate or 250 basis
points above the LIBOR rate for maturities of up to one year. The term of
the revolving line of credit was also extended by one year to February 28,
1998. The outstanding balance on the revolving line of credit at July 6,
1996 was $325,000, with a total availability under the amended borrowing
base formula of $2,763,000.
The Company expects that cash requirements for the next twelve months will be
satisfied by net cash provided by operating activities and bank and other
borrowings. The Company presently does not anticipate that it will seek
additional funds from public or private convertible debt or equity sources
during the next twelve-month period.
The average cost of the high-quality arabica coffees the Company purchases
decreased during the 1996 YTD period when compared to the 1995 YTD period
and the Company's overall gross profit margin has improved. The Company has
begun to pass such savings on to its customers through price reductions, and
such price reductions are likely to negatively impact the Company's year-to-
year percentage net sales growth rate.
The Company believes that the cost of green coffee will continue to be
volatile throughout the remainder of fiscal 1996, but expects that its
average cost of green coffee in fiscal 1996 will be less than that
experienced in fiscal 1995, although there can be no assurance that this will
be the case. The Company believes that increases in the cost of green coffee
can generally be passed on to customers or absorbed through more efficient
operations, although there can be no assurance that the Company will be
successful in doing so. Similarly, rapid sharp decreases in the cost of
green coffee could also force the Company to lower sales prices before
realizing cost reductions in its green coffee inventory.
To date, Green Mountain has not encountered significant problems with the
availability of the high-quality arabica coffees the Company purchases, but
management expects a tightening in the supply of these coffees that will last
through the Fall until the new crop is harvested and comes to market.
However, the Company believes that there are adequate sources of supply of
high-quality green arabica coffee beans to meet its needs for the foreseeable
future. Because Green Mountain roasts over 25 different types of green
coffee beans to produce its more than 70 different varieties of coffee, if
one type of green coffee bean were to become unavailable or prohibitively
expensive, management believes Green Mountain could substitute another type
of coffee of equal or better quality meeting a similar taste profile, in a
blend or temporarily remove that particular coffee from its product line.
The Company had total net deferred tax assets of $927,000 at July 6, 1996.
These assets are reported net of a deferred tax asset valuation allowance at
that date of $944,000. The Company was profitable in each of the three
fiscal years ended September 26, 1992, September 28, 1991 and September 30,
1990, the fifteen-month period ended September 30, 1989 and the fiscal year
ended June 30, 1988. In fiscal 1993 and fiscal 1994, the Company made
investments in production and distribution capacity and personnel and
marketing expenditures in order to position itself for accelerated growth
and the Company reported net losses for those years. More than half the net
loss for fiscal 1993 was attributable to a one-time, non-cash charge to
compensation expense of $1.3 million resulting from factors related to its
initial public offering. The Company reduced its full-year net loss by 90.8%
from $2,358,000 in fiscal 1994 to $218,000 in fiscal 1995, and has been
profitable in six of its last eight fiscal quarters including the last four
consecutive fiscal quarters. Accordingly, management believes that the net
deferred tax assets are realizable.
Seasonality
- - -----------
Historically, the Company has experienced lower net sales levels in its
second fiscal quarter following high holiday-related levels in its first
fiscal quarter, especially in its retail and direct mail operations,
resulting in less favorable operating results during the second fiscal
quarter. In addition, quarterly results may be affected by a variety of
other factors, including, but not limited to, general economic trends, the
cost of green coffee, competition, marketing programs, weather and special
or unusual events. Because of the seasonality of the Company's business,
results for any quarter are not necessarily indicative of the results that may
be achieved for the full fiscal year.
<PAGE>
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
11 Computation of Net Income (Loss) Per Share of Common Stock.
27 Financial Data Schedule.
(b) No reports on Form 8-K were filed during the twelve weeks
ended July 6, 1996.
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
GREEN MOUNTAIN COFFEE, INC.
Date: August 7, 1996 By: /s/ Robert P. Stiller
-------------- ----------------------------
Robert P. Stiller, President
and Chief Executive Officer
Date: August 7, 1996 By: /s/ Robert D. Britt
-------------- ----------------------------
Robert D. Britt,
Chief Financial Officer,
Treasurer and Secretary
<PAGE>
<TABLE>
Green Mountain Coffee, Inc.
Exhibit 11
Computation of Net Income (Loss) Per Share
<CAPTION>
Twelve weeks ended Forty weeks ended
(unaudited)
<S> <C> <C> <C> <C>
July 6, July 1, July 6, July 1,
1996 1995 1996 1995
---------- ---------- ---------- ----------
Net income (loss) $ 149,000 $(131,000) $ 926,000 $(450,000)
---------- ---------- ---------- ----------
Primary weighted common
shares outstanding:
Common stock 3,399,795 3,383,485 3,399,795 3,383,485
Stock options 27,887 - 27,797 -
--------- --------- --------- ---------
Weighted average shares 3,427,682 3,383,485 3,427,592 3,383,485
Net income (loss) per share $ 0.04 $ (0.04) $ 0.27 $ (.13)
--------- ---------- --------- ----------
<FN>
The accompanying Notes to Consolidated Financial Statements are
an integral part of these financial statements.
</TABLE>
<TABLE> <S> <C>
<S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
balance sheet dated 7/6/96 and the Statement of Operations for the forty
weeks ended 7/6/96 and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<PERIOD-TYPE> OTHER
<FISCAL-YEAR-END> SEP-28-1996
<PERIOD-START> OCT-01-1995
<PERIOD-END> JUL-06-1996
<CASH> 496
<SECURITIES> 0
<RECEIVABLES> 2,339
<ALLOWANCES> 80
<INVENTORY> 2,673
<CURRENT-ASSETS> 5,933
<PP&E> 15,207
<DEPRECIATION> 6,752
<TOTAL-ASSETS> 15,602
<CURRENT-LIABILITIES> 4,298
<BONDS> 2,856
0
0
<COMMON> 340
<OTHER-SE> 8,108
<TOTAL-LIABILITY-AND-EQUITY> 15,602
<SALES> 28,880
<TOTAL-REVENUES> 28,880
<CGS> 17,229
<TOTAL-COSTS> 17,229
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 335
<INCOME-PRETAX> 1,089
<INCOME-TAX> 163
<INCOME-CONTINUING> 926
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 926
<EPS-PRIMARY> .27
<EPS-DILUTED> .27
</TABLE>
