<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 July 31, 1999
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 For the Transition Period From _____ to ____
Commission file number 0-22532
ULTIMATE ELECTRONICS, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 84-0585211
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification no.)
321 WEST 84TH AVENUE, SUITE A, THORNTON, COLORADO 80260
(Address of principal executive offices, zip code)
(303) 412-2500
(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
----- -----
The number of outstanding shares of common stock as of September 13, 1999 was
8,238,393.
<PAGE>
ULTIMATE ELECTRONICS, INC.
FORM 10-Q
INDEX
<TABLE>
<S> <C> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements: Page No.
Condensed Consolidated Balance Sheets as of July 31, 1999 (unaudited) and
January 31, 1999 . . . . . . . . . . . . . . . . . . . . . 3
Consolidated Statements of Operations for the three and six months ended
July 31, 1999 and July 31, 1998 (unaudited) . . . . . . . . . . . . 4
Condensed Consolidated Statements of Cash Flows for the six months ended
July 31, 1999 and July 31, 1998 (unaudited) . . . . . . . . . . . . 5
Notes to Condensed Consolidated Financial Statements (unaudited) . . . . . 6
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations . . . . . . . . . . . . . . . . . . . 7
Item 3. Quantitative and Qualitative Disclosures About Market Risk . . . . . . 11
PART II. OTHER INFORMATION
Item 1. Legal Proceedings. . . . . . . . . . . . . . . . . . . . . 11
Item 2. Changes in Securities . . . . . . . . . . . . . . . . . . . 11
Item 3. Defaults Upon Senior Securities. . . . . . . . . . . . . . . . 11
Item 4. Submission of Matters to a Vote of Security Holders . . . . . . . . . 11
Item 5. Other Information . . . . . . . . . . . . . . . . . . . . 12
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . 12
</TABLE>
2
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
ULTIMATE ELECTRONICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except share data)
<TABLE>
<CAPTION>
July 31, January 31,
1999 1999
------------ -----------
(Unaudited)
<S> <C> <C>
ASSETS:
Current assets:
Cash and cash equivalents $ 6,113 $ 4,421
Accounts receivable, net 17,108 17,814
Merchandise inventories 46,722 46,908
Other assets 1,608 1,087
------------ -----------
Total current assets 71,551 70,230
Property and equipment, net 45,118 46,636
Property under capital leases, including related
parties, net 1,564 1,729
Goodwill, net 2,163 2,300
Other assets 992 1,009
------------ -----------
Total assets $ 121,388 $ 121,904
------------ -----------
------------ -----------
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 28,626 $ 29,888
Other current liabilities 13,785 13,602
------------ -----------
Total current liabilities 42,411 43,490
Revolving line of credit 11,978 13,188
Bonds payable 13,000 13,000
Term loans 165 330
Capital lease obligations, including related parties 1,810 1,841
Deferred tax liability 2,380 2,380
Commitments
Stockholders' equity:
Preferred stock, par value $.01 per share
Authorized shares - 10,000,000
No shares issued and outstanding - -
Common stock, par value $.01 per share
Authorized shares - 10,000,000
Issued and outstanding shares, 8,232,645 and
8,160,796 at July 31, 1999 and January 31, 1999 82 81
Additional paid-in capital 34,123 33,912
Retained earnings 15,439 13,682
------------ -----------
Total stockholders' equity 49,644 47,675
------------ -----------
Total liabilities and stockholders' equity $ 121,388 $ 121,904
------------ -----------
------------ -----------
</TABLE>
See accompanying notes to Condensed Consolidated Financial Statements.
3
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ULTIMATE ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(amounts in thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
July 31, July 31,
------------------------- --------------------------
1999 1998 1999 1998
------------ ----------- ------------ -----------
<S> <C> <C> <C> <C>
Sales $ 86,309 $ 71,182 $ 166,612 $ 142,064
Cost of goods sold 59,828 49,279 116,616 101,901
------------ ----------- ------------ ------------
Gross profit 26,481 21,903 49,996 40,163
Selling, general and administrative expenses 23,688 20,675 45,814 41,373
------------ ----------- ------------ ------------
Income (loss) from operations 2,793 1,228 4,182 (1,210)
Interest expense, net 707 1,127 1,388 2,198
------------ ----------- ------------ ------------
Income (loss) before income taxes 2,086 101 2,794 (3,408)
Income tax expense (benefit) 768 43 1,037 (1,255)
------------ ----------- ------------ ------------
Net income (loss) $ 1,318 $ 58 $ 1,757 $ (2,153)
------------ ----------- ------------ ------------
------------ ----------- ------------ ------------
Earnings (loss) per share - Basic $ . 16 $ . 01 $ . 21 $ (. 26)
Earnings (loss) per share - Diluted $ . 15 $ . 01 $ . 20 $ (. 26)
Weighted average shares outstanding - Basic 8,211 8,151 8,187 8,145
Weighted average shares outstanding - Diluted 8,926 8,221 8,866 8,145
</TABLE>
See accompanying notes to Condensed Consolidated Financial Statements.
4
<PAGE>
ULTIMATE ELECTRONICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(amounts in thousands)
<TABLE>
<CAPTION>
Six Months Ended
July 31,
-------------------------
1999 1998
----------- ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash provided by operating activities $ 4,613 $ 1,589
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (1,609) (543)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net paydown on revolving line of credit (1,210) (273)
Principal payments on term loans and capital lease
obligations (314) (292)
Proceeds from exercise of stock options 212 16
----------- ------------
Net cash used in financing activities (1,312) (549)
----------- ------------
Net increase in cash and cash equivalents 1,692 497
Cash and cash equivalents at beginning of period 4,421 2,006
----------- ------------
Cash and cash equivalents at end of period $ 6,113 $ 2,503
=========== ============
</TABLE>
See accompanying notes to Condensed Consolidated Financial Statements.
5
<PAGE>
ULTIMATE ELECTRONICS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
JULY 31, 1999
1. ACCOUNTING POLICIES
The Company's unaudited condensed consolidated financial statements have
been prepared by the Company in accordance with generally accepted
accounting principles for interim financial reporting and the regulations
of the Securities and Exchange Commission for quarterly reporting.
Accordingly, they do not include all information and footnotes required by
generally accepted accounting principles for complete financial statements.
In the opinion of the Company, the statements include all adjustments,
consisting only of normal recurring adjustments, which are necessary for a
fair presentation of the financial position, results of operations and cash
flows for the interim periods. Operating results for the three and six
month periods ended July 31, 1999 are not necessarily indicative of the
results that may be expected for the year ending January 31, 2000. Seasonal
fluctuations in sales of the Company's products result primarily from the
purchasing patterns of individual consumers during the Christmas holiday
season. These patterns tend to moderately concentrate sales in the latter
half of the year, particularly in the fourth quarter. For further
information, refer to the financial statements and footnotes thereto
included in the Company's Annual Report to Stockholders for the year ended
January 31, 1999.
2. PRINCIPLES OF CONSOLIDATION
The unaudited condensed consolidated financial statements include the
accounts of all subsidiaries. All intercompany accounts and transactions
have been eliminated upon consolidation.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Management's discussion and analysis of financial condition and
results of operations and the financial statements and accompanying
notes contain statements that are not historical facts but are
forward-looking statements that involve risks and uncertainties that
could cause future results to vary materially from projected results.
Such statements address activities, events or developments that the
Company expects, believes, projects, intends, estimates, plans or
anticipates will, should, could or may occur, including reference to
future profitability and steps being taken to achieve that result.
Factors that could cause actual results to differ materially from the
Company's projections, forecasts, estimates and expectations include,
but are not limited to, statements about business strategy, expansion
strategy and competition; risks regarding increases in promotional
activities of competitors, changes in consumer buying attitudes, the
presence or absence of new products or product features in the
Company's merchandise categories, changes in the distribution
strategy of the Company's vendors, changes in vendor support for
advertising and promotional programs, changes in the Company's
merchandise sales mix, the results of financing efforts, fluctuations
in consumer demand, the risks associated with Year 2000 issues as
well as general economic conditions. Please refer to a discussion of
these and other factors in the Company's Annual Report on Form 10-K
for the year ended January 31, 1999 and other filings with the
Securities and Exchange Commission. The Company disclaims any intent
or obligation to update publicly these forward-looking statements,
whether as a result of new information, future events or otherwise.
RESULTS OF OPERATIONS
Sales for the three months ended July 31, 1999 increased 21% to $86.3
million from $71.2 million for the three months ended July 31, 1998.
Sales for the six months ended July 31, 1999 were $166.6 million, a
17% increase from sales of $142.1 million for the same period in the
prior year. Sales of comparable stores were up 20% and 17%,
respectively, for the three and six months ended July 31, 1999. As
announced on May 21, 1998, the Company significantly reduced its
computer assortment. Excluding the computer category, comparable
store sales were up 20% for the six months ended July 31, 1999.
Beginning in the fourth quarter of the prior year, the Company began
mailing an 80-plus page color catalog to its customer base on a
quarterly basis. The catalog, along with refinements to the Company's
merchandising and sales systems and a favorable retail electronics
market in general, contributed to the increase in comparable store
sales in the current year.
Gross profit for the three months ended July 31, 1999 increased 21%
to $26.5 million (30.7% of sales) from $21.9 million (30.7% of sales)
for the three months ended July 31, 1998. Gross profit for the six
months ended July 31, 1999 increased to $50.0 million (30.0% of
sales) from $40.2 million (28.3% of sales) for the six months ended
July 31, 1998. For the six months ended July 31, 1999, the improved
gross margins were primarily the result of increased sales in the
Company's higher margin core categories including audio, television
and mobile electronics. The prior year's margin was negatively
impacted by $700,000 in increased inventory reserves recorded in the
first quarter of fiscal 1999 associated with the decision to reduce
the Company's computer assortment.
Selling, general and administrative expenses for the three months
ended July 31, 1999 increased 15% to $23.7 million (27.5% of sales)
from $20.7 million (29.0% of sales) for the three months ended July
31, 1998. Selling, general and administrative expenses for the six
months ended July 31, 1999 increased to $45.8 million (27.5% of
sales) from $41.4 million (29.1% of sales) for the six months ended
July 31, 1998. The decrease in selling, general and administrative
expenses as a percentage of sales was primarily due to the leveraging
of the Company's fixed expenses against the 20% and 17% comparable
store sales increases that the Company achieved in the first and
second quarters of the current year as well as the cost control
measures implemented after the first quarter of the prior year.
As a result of the foregoing, the Company recorded income from
operations of $2.8 million (3.2% of
7
<PAGE>
sales) for the three months ended July 31, 1999, compared to income
from operations of $1.2 million (1.7% of sales) for the three months
ended July 31, 1998. Income from operations for the six months ended
July 31, 1999 was $4.2 million (2.5% of sales) compared to a loss
from operations of $1.2 million (0.8% of sales) for the six months
ended July 31, 1998.
Interest expense decreased to $707,000 and $1.4 million for the three
and six months ended July 31, 1999 from $1.1 million and $2.2 million
for the three and six months ended July 31, 1998. This decrease was
due primarily to lower average amounts outstanding under the
Company's revolving line of credit as well as a reduction in the
interest rate associated with the change in the line of credit from
Norwest Bank to Foothill Capital Corporation.
LIQUIDITY AND CAPITAL RESOURCES
Historically, the Company's primary sources of liquidity for funding
expansion and growth have been net cash from operations, revolving
credit lines, term loans and issuances of common stock. The Company's
primary capital requirements are directly related to expenditures for
new store openings and/or remodeling of existing store locations. The
Company currently operates a total of 30 stores in nine states.
Net cash provided by operations was $4.6 million for the six months
ended July 31, 1999 compared to $1.6 million for the six months ended
July 31, 1998.
In March 1995, the Company issued $13.0 million aggregate principal
amount of 10.25% First Mortgage Bonds and received net proceeds of
$12.3 million. The proceeds of the bond offering were used to fund a
substantial portion of the construction of the Company's warehouse,
offices, service and store facility in Thornton, Colorado. Interest
accrues at a rate of 10.25% per year until maturity or earlier
redemption. The Company is required to redeem $3.25 million aggregate
principal amount of the bonds (reduced to the extent of the bonds
previously purchased or redeemed by the Company) on January 31, 2002
and on January 31 of each of the three years thereafter, at a
redemption price equal to par plus accrued interest to the date of
redemption. The bonds are redeemable at par on or after March 31,
2000 and are secured by the Company's Thornton facility.
The Company intends to expand into select metropolitan areas in the
Rocky Mountain, Midwest and Southwest regions with 30,000 to 36,000
square foot stores. In certain smaller markets, the store size may be
as small 20,000 square feet. With the exception of the Thornton
Facility, all stores are leased. The Company has begun analyzing new
store opportunities in existing markets to replace some of the
Company's smaller locations. In fiscal 2000, the Company expects
to complete construction to expand a Minneapolis, Minnesota store
from 10,000 to 18,000 square feet and to relocate and expand its
Sioux Falls, South Dakota store from 3,200 to 22,000 square feet.
In fiscal 2001, a 10,000 square foot store located in the
Minneapolis/St. Paul area is planned to be relocated to a 35,000
square foot store. The Company also expects to relocate and expand
its Arvada, Colorado store within the next 18 months and will be
analyzing opportunities in the Minneapolis/St. Paul area over the
next few years to relocate and/or expand a number of those locations.
The Company is currently constructing a 36,000 square foot store in
Davenport, Iowa that is expected to open by the end of fiscal 2000.
For fiscal 2001, the Company expects to open six to eight new
stores, primarily in the Phoenix metropolitan area, and eight
to twelve additional stores in fiscal 2002. At the present time, no
leases have been signed for the Phoenix stores but the Company has
entered into letters of intent and is negotiating leases for several
of the sites. The Company currently anticipates opening some of the
Phoenix stores in the second quarter of fiscal 2001 and additional
Phoenix stores prior to the holiday selling season of fiscal 2001.
The cost of these future stores is anticipated to average $3.0
million, depending on tenant allowances and includes preopening
expenses, leasehold improvements, fixtures, equipment and inventory
(net of payables). Preopening expenses for new stores are expected to
average $350,000, and include such items as advertising prior to
opening, recruitment and training of new employees and other costs of
opening stores. In the event of relocations of existing stores,
preopening costs are expected to average $150,000 and will be higher
if the Company is forced to terminate existing store leases prior to
their maturity. The
8
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inventory requirement for the Company's new stores is expected to
average approximately $1.5 million, approximately $750,000 of which
is financed through trade credit.
On September 30, 1998, the Company executed a three-year $40 million
credit agreement with Foothill Capital Corporation (a wholly owned
subsidiary of Norwest Bank). Borrowings under the Company's revolving
line of credit are limited to the lesser of $40 million or 80% of
eligible inventory and a portion of accounts receivable. As of July
31, 1999, the entire $40 million facility was available to the
Company, of which $12.0 million was outstanding. Borrowings bear
interest, payable monthly, based on a blend of LIBOR plus 2.0% and
Norwest Bank's prime rate minus 0.375%. Borrowings are secured by
inventories, accounts receivable, equipment and intangibles. The
facility includes negative covenants which limit the Company's
ability to, among other things, subject to various exceptions, incur
indebtedness, create liens, enter into mergers and consolidations,
issue guarantees, sell or transfer assets, foreign inventory, prepay
or retire any debt owed to third parties, make investments or engage
in transactions with affiliates. The facility also contains covenants
regulating the Company's gross margin, inventory levels, tangible net
worth and capital expenditures. The Company was in compliance with
all borrowing covenants at July 31, 1999.
The Company believes that its cash flow from operations and
borrowings under its current credit facility will be sufficient to
fund the Company's operations and debt repayment for fiscal 2000. To
fund the capital requirements for its anticipated expansion plans
beyond fiscal 2000, the Company may be required to seek additional
financing, which may take the form of expansion of its existing
credit facility, or possibly additional debt or equity financings.
There can be no assurance that the Company will be able to obtain
such funds on favorable terms, if at all.
SEASONALITY
The Company's business is affected by seasonal consumer buying
patterns. As is the case with many other retailers, the Company's
sales and profits have been greatest in the fourth quarter (which
includes the holiday selling season). Operating results are dependent
upon a number of factors, including discretionary consumer spending,
which is affected by local, regional or national economic conditions
affecting disposable consumer income, such as employment, business
conditions, interest rates and taxation. The Company's quarterly
results of operations may fluctuate significantly as a result of a
number of factors, including the timing of new or relocated and
expanded store openings and related expenses, the success of new
stores and the impact of new stores on existing stores, among others.
As the Company has opened additional stores or relocated and expanded
stores within markets it already serves, sales at existing stores
have been adversely affected. Such adverse effects may occur in the
future. The Company's quarterly operating results also may be
affected by increases in merchandise costs, price changes in response
to competitive factors, new and increased competition, product
availability and the costs associated with the opening of new stores.
YEAR 2000
Until recently, most computer programs were written to store only two
digits of date-related information in order to more efficiently
handle and sort data. As a result, these programs were unable to
properly distinguish between dates occurring in the year 1900 and
dates occurring in the year 2000. This is referred to as the "Year
2000 Issue". During fiscal 1999, the Company reviewed all
applications and equipment to evaluate the Company's exposure to the
Year 2000 Issue. The required modifications to existing systems were
identified, and plans were developed for upgrades or remediation. The
Company anticipates that all upgrades and remediation will be
completed by October 31, 1999.
The Company's primary information system software is provided by
Tyler Retail Systems, Inc. ("Tyler") of Clearwater, Florida. This
software operates the vast majority of the Company's systems and has
been evaluated for Year 2000 compliance. Tyler has assured the
Company that with the current software and
9
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the pending upgrade, the Company's system will be Year 2000 compliant
by October 31, 1999. The Company began the upgrade process in the
first quarter of fiscal 2000. The Company believes that no other
significant modifications to the Tyler software will be necessary.
The Company's system review also identified that some older hardware
and software were not Year 2000 compliant. These items were few in
number and have been replaced with Year 2000 compliant products. In
the opinion of the Company, costs of these upgrades will not be
material to the financial condition or operation of the Company. The
Company is also in communication with third parties with whom it does
significant business in order to assess their Year 2000 compliance
and minimize the potential for adverse consequences, if any, that
could result from failure of such entities to address this issue.
Year 2000 issues do present risks that are outside of the control of
the Company, including, but not limited to, the failure of utility
companies to provide electricity, the failure of telecommunication
companies to provide voice and data transfer services, the failure of
financial services companies to process transactions or transfer
funds and the failure of third-party vendors or suppliers to become
Year 2000 compliant. In the event of the failure of the Company or
Tyler to become timely Year 2000 compliant, the Company has not
identified a near-term economically feasible alternative for
operations support, and would be required to resort to manual or
other processing methods. With regard to any Year 2000 failure by
third-party product suppliers, the Company plans to pursue
alternative suppliers for Year 2000 compliant products, however it
anticipates its competitors will be similarly impacted in any such
event. The Company can make no assurances that Year 2000 issues will
not have an adverse effect on the Company's business, financial
condition, or future operations. The information provided in this
disclosure constitutes a "Year 2000 Readiness Disclosure" under the
Year 2000 Information and Readiness Disclosure Act of 1998.
10
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ITEM 3. QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK
OUTSTANDING DEBT OF THE COMPANY. As of July 31, 1999, the Company had
outstanding debt of approximately $25.1 million, $13.0 million of
which bears interest at an annual fixed rate of 10.25%. A
hypothetical 10.0% decrease in interest rates would not have a
material impact on the Company. Increases in interest rates could,
however, increase interest expense associated with future borrowings
by the Company, if any. For example, the Company frequently effects
borrowings under its $40.0 million revolving line of credit for
general corporate purposes, capital expenditures and other purposes
related to expansion of the Company's capacity. Borrowings under the
$40.0 million line of credit bear interest based on a blend of LIBOR
plus 2.0% and Norwest Bank's prime rate minus 0.375%. Borrowings
under this credit facility in the amount of $12.0 million were
outstanding as of July 31, 1999. The Company has not hedged against
interest rate changes.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
From time to time, the Company is a party to certain legal
proceedings arising in the ordinary course of its business.
Management believes that any resulting liability, individually or in
the aggregate, will either be covered by insurance or will not have a
material adverse effect on the Company's financial condition.
ITEM 2. CHANGES IN SECURITIES.
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The 1999 Annual Meeting of Stockholders of Ultimate Electronics, Inc.
was held on June 15, 1999. At the meeting, David J. Workman and
Randall F. Bellows were elected as Class II Directors for three-year
terms expiring at the 2002 Annual Meeting of Stockholders. William J.
Pearse, J. Edward McEntire, Alan E. Kessock and Robert W. Beale
continue their respective terms as Directors of the Company.
The matters voted upon and passed at the Meeting were the election of
the above noted directors and the ratification of the appointment of
Ernst & Young LLP as the Company's independent public accountants for
the fiscal year ending January 31, 2000. The results of the voting on
these matters is outlined in the following table.
<TABLE>
<CAPTION>
VOTES VOTES VOTES
PROPOSAL FOR AGAINST ABSTAINED
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
Election of Directors:
David J. Workman 7,980,892 - 16,074
Randall F. Bellows 7,980,892 - 16,074
Ratification of Ernst & Young LLP 7,974,272 17,802 4,892
</TABLE>
ITEM 5. OTHER INFORMATION.
11
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None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits:
Documents filed with this report:
27 Financial Data Schedule
(b) Reports on Form 8-K:
None.
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.
Ultimate Electronics, Inc.
Date: September 14, 1999 By: /s/ Alan E. Kessock
----------------------------- --------------------------------
Alan E. Kessock
Senior Vice President, Chief Financial
Officer, Secretary and a Director
(Principal Financial and Accounting
Officer)
13
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JAN-31-2000
<PERIOD-START> FEB-01-1999
<PERIOD-END> JUL-31-1999
<CASH> 6,113
<SECURITIES> 0
<RECEIVABLES> 17,513
<ALLOWANCES> 405
<INVENTORY> 46,722
<CURRENT-ASSETS> 71,551
<PP&E> 67,438
<DEPRECIATION> 22,320
<TOTAL-ASSETS> 121,388
<CURRENT-LIABILITIES> 42,411
<BONDS> 26,953
0
0
<COMMON> 82
<OTHER-SE> 49,562
<TOTAL-LIABILITY-AND-EQUITY> 121,388
<SALES> 166,612
<TOTAL-REVENUES> 166,612
<CGS> 116,616
<TOTAL-COSTS> 116,616
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,388
<INCOME-PRETAX> 2,794
<INCOME-TAX> 1,037
<INCOME-CONTINUING> 1,757
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,757
<EPS-BASIC> 0.21
<EPS-DILUTED> 0.20
</TABLE>
