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 June 30, 1997
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission File Number 1-13082
KENNETH COLE PRODUCTIONS, INC.
(Exact name of registrant as specified in its charter)
New York 13-3131650
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
152 West 57th Street, New York, NY 10019
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 265-1500
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 ( )
Indicate the number of shares of each of the issuer's classes of common stock,
as of the latest practicable date:
Class August 12, 1997
-----
Class A Common Stock ( $.01 par value) 7,369,556
Class B Common Stock ( $.01 par value) 5,785,398
<PAGE>
Kenneth Cole Productions, Inc.
Index to 10-Q
<TABLE>
<CAPTION>
Part I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements (Unaudited)
Consolidated Balance Sheets as of June 30, 1997 and December 31, 1996 .................. 3
Consolidated Statements of Income for the three month and six month
periods ended June 30, 1997 and 1996 ................................................... 5
Consolidated Statement of Changes in Shareholders' Equity for the six
month period ended June 30, 1997 ....................................................... 6
Consolidated Statements of Cash Flows for the six month periods
ended June 30, 1997 and 1996 ........................................................... 7
Notes to Consolidated Financial Statements ............................................. 8
Item 2. Management's Discussion and Analysis of Results of Operations
and Financial Condition ................................................................ 9
Part II. OTHER INFORMATION
Item 1. Legal Proceedings ...................................................................... 13
Item 2. Changes in Securities .................................................................. 13
Item 3. Defaults Upon Senior Securities ........................................................ 13
Item 4. Submission of Matters to a Vote of Security Holders .................................... 13
Item 5. Other Information ...................................................................... 14
Item 6. Exhibits and Reports on Form 8-K ....................................................... 14
Signatures ...................................................................................... 15
Index of Exhibits ............................................................................... 16
</TABLE>
2
<PAGE>
Kenneth Cole Productions, Inc. and Subsidiaries
Consolidated Balance Sheets
June 30, December 31,
1997 1996
-------------------------
(Unaudited)
Assets
Current assets:
Cash $ 1,406,000 $ 1,626,000
Due from factors 20,155,000 17,976,000
Accounts receivable, net 2,731,000 3,339,000
Inventories 29,302,000 29,265,000
Prepaid expenses and other current assets 871,000 1,001,000
Deferred taxes 755,000 755,000
-------------------------
Total current assets 55,220,000 53,962,000
Property and equipment
Furniture and fixtures 3,939,000 3,234,000
Machinery and equipment 3,348,000 2,916,000
Leasehold improvements 6,838,000 6,610,000
-------------------------
14,125,000 12,760,000
Less accumulated depreciation and amortization 4,324,000 3,428,000
-------------------------
Net property and equipment 9,801,000 9,332,000
-------------------------
Other assets:
Deferred taxes 145,000 145,000
Deposits and sundry 2,137,000 1,816,000
-------------------------
Total other assets 2,282,000 1,961,000
-------------------------
Total assets $67,303,000 $65,255,000
=========================
See accompanying notes to consolidated financial statements.
3
<PAGE>
Kenneth Cole Productions, Inc. and Subsidiaries
Consolidated Balance Sheets
<TABLE>
<CAPTION>
June 30 December 31,
1997 1996
---------------------------
(Unaudited)
<S> <C> <C>
Liabilities and shareholders' equity
Current liabilities:
Accounts payable $ 6,644,000 $ 12,738,000
Accrued expenses and other current liabilities 2,153,000 2,376,000
Advances due under revolving credit facility and
current portion of long-term debt 4,405,000 489,000
Income taxes payable 331,000 1,247,000
Deferred license income 575,000 89,000
----------------------------
Total current liabilities 14,108,000 16,939,000
----------------------------
Deferred rent payable 710,000 521,000
Other non-current liabilities 1,498,000 1,196,000
Shareholders' equity
Preferred stock, par value $1.00, 1,000,000 shares
authorized, none outstanding
Class A common stock, par value $.01,
20,000,000 shares authorized, 7,369,556
and 7,353,179 outstanding in 1997
and 1996 74,000 74,000
Class B common stock, par value $.01,
6,000,000 shares authorized, 5,785,398 outstanding 58,000 58,000
Additional paid-in capital 19,306,000 19,104,000
Cumulative translation adjustment 71,000
Retained earnings 31,478,000 27,432,000
Deferred compensation (69,000)
----------------------------
Total shareholders' equity 50,987,000 46,599,000
----------------------------
Total liabilities and shareholders' equity $ 67,303,000 $ 65,255,000
============================
</TABLE>
See accompanying notes to consolidated financial statements.
4
<PAGE>
Kenneth Cole Productions, Inc. and Subsidiaries
Consolidated Statements of Income
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30 June 30
------------------------------- --------------------------------
1997 1996 1997 1996
------------------------------- --------------------------------
<S> <C> <C> <C> <C>
Net sales $ 40,352,000 $ 35,019,000 $ 85,262,000 $ 70,129,000
Cost of goods sold 26,375,000 20,707,000 53,669,000 41,032,000
------------------------------- --------------------------------
Gross profit 13,977,000 14,312,000 31,593,000 29,097,000
Licensing and other income 1,212,000 639,000 2,268,000 1,155,000
Selling, general and administrative and
shipping and warehousing
13,779,000 10,399,000 26,919,000 20,649,000
------------------------------- --------------------------------
Operating income 1,410,000 4,552,000 6,942,000 9,603,000
------------------------------- --------------------------------
Interest (income) expense, net 87,000 (26,000) 199,000 15,000
Income before provision for income taxes 1,323,000 4,578,000 6,743,000 9,588,000
Provision for income taxes 529,000 1,877,000 2,697,000 3,931,000
------------------------------- --------------------------------
Net income $ 794,000 $ 2,701,000 $ 4,046,000 $ 5,657,000
=============================== ================================
Net income per share $ .06 $ .20 $ .30 $ .42
=============================== ================================
</TABLE>
See accompanying notes to consolidated financial statements.
5
<PAGE>
Kenneth Cole Productions, Inc. and Subsidiaries
Consolidated Statement of Changes in Shareholders' Equity
(Unaudited)
<TABLE>
<CAPTION>
Class A Class B
Common Stock Common Stock
------------ ------------ Total Cummulative
Number Number Common Translation
of shares Amount of shares Amount Stock Adjustment
--------- ------ --------- ------ ----- ----------
Shareholders' equity
<S> <C> <C> <C> <C> <C> <C>
January 1, 1997 7,353,179 $74,000 5,785,398 $58,000 $132,000
Exercise of Stock 16,377
Options
Net Income
Translation Adjustment 71,000
Amortization of
deferred compensation
==============================================================================
Shareholders' equity 7,369,556 $74,000 5,785,398 $58,000 $132,000 $71,000
June 30, 1997
==============================================================================
<CAPTION>
Additional Deferred
Paid-in Retained Compen-
Capital Earnings sation Total
------- -------- ------ -----
<S> <C> <C> <C> <C>
Shareholders' equity
January 1, 1997 $19,104,000 $27,432,000 ($69,000) $46,599,000
Exercise of Stock
Options 202,000 202,000
Net Income 4,046,000 4,046,000
Translation Adjustment 71,000
Amortization of 69,000 69,000
deferred compensation
========================================================
Shareholders' equity $19,306,000 $31,478,000 $50,987,000
June 30, 1997
========================================================
</TABLE>
See accompanying notes to consolidated financial statements.
6
<PAGE>
Kenneth Cole Productions, Inc. and Subsidiaries
Consolidated Statements of Cash Flows (Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
June 30
1997 1996
--------------------------
<S> <C> <C>
Cash flows from operating activities
Net income $ 4,046,000 $ 5,657,000
Adjustments to reconcile net income to net cash
(used in) provided by operating
activities:
Depreciation and amortization 896,000 479,000
Amortization of deferred compensation 69,000 116,000
Provision for doubtful accounts 5,000
Changes in assets and liabilities:
Increase in due from factors (2,179,000) (3,638,000)
Decrease (increase) in accounts receivable 603,000 (108,000)
Increase in inventories (37,000) (5,915,000)
Decrease in prepaid expenses and other current assets 130,000 274,000
Increase in deposits (321,000) (443,000)
Decrease in accounts payable (6,094,000) (545,000)
(Decrease) increase in income taxes payable (848,000) 1,869,000
Increase in accrued expenses and other current liabilities 239,000 487,000
Increase in other non-current liabilities 491,000 286,000
--------------------------
Net cash used in operating activities (3,000,000) (1,481,000)
Cash flows from investing activities
Acquisition of property and equipment, net (1,365,000) (1,236,000)
--------------------------
Net cash used in investing activities (1,365,000) (1,236,000)
Cash flows from financing activities
Proceeds from revolving line of credit, net 3,940,000 1,485,000
Proceeds from exercise of stock options 134,000 64,000
--------------------------
Net cash provided by financing activities 4,074,000 1,549,000
Effect of exchange rate changes on cash 71,000
--------------------------
Net decrease in cash (220,000) (1,168,000)
Cash, beginning of period 1,626,000 2,204,000
--------------------------
Cash, end of period $ 1,406,000 $ 1,036,000
==========================
Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest $ 245,000 $ 62,000
Income taxes $ 3,545,000 $ 1,857,000
</TABLE>
See accompanying notes to consolidated financial statements.
7
<PAGE>
Kenneth Cole Productions, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
(Unaudited)
General
The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information. Accordingly, they do not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements. The data contained in these financial statements are
unaudited and are subject to year end adjustment, however, in the opinion of
management, all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included. Operating results for the
three and six month periods ended June 30, 1997 are not necessarily indicative
of the results that may be expected for the year ended December 31, 1997. For
further information, refer to the consolidated financial statements and
footnotes thereto included in the Company's annual report on Form 10-K for the
year ended December 31, 1996.
The balance sheet at December 31, 1996 was derived from the audited financial
statements.
Earnings Per Share
The Company calculates earning per share ("EPS") in accordance with Accounting
Principles Board Opinion 15, "Earning per share" ("APB 15"). Earning per share
is based on the weighted average number of shares of common stock and common
stock equivalents, if dilutive, outstanding during each period.
In March 1997, the Financial Accounting Standards Board (the "FASB") issued
Statement of Financial Accounting Standards No. 128, "Earning per Share"
("SFAS128"), which upon adoption will supersede APB 15 and is intended to
simplify and harmonize the EPS calculations in the United States with those
common in other countries and to present two EPS calculations: (i) basic
earnings per common share which is computed by dividing net income by the
weighted average number of shares of common stock outstanding during the periods
presented, and (ii) diluted earnings per common share, which is determined on
the assumption that options issued to employees are exercised and repurchased at
the average price for the periods presented. SFAS 128 is effective for financial
statements for the year ended December 31, 1997. Under SFAS 128, basic earnings
per share for the three and six month period ended June 30, 1997 would be $.06
and $.31 per share.
8
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
The following table sets forth the Company's condensed consolidated statements
of income in thousands of dollars and as a percentage of net sales for the
quarter ended June 30, 1997 and June 30, 1996 and for the six months ended June
30, 1997 and June 30, 1996.
<TABLE>
<CAPTION>
Three Months ended
------------------
June 30, 1997 June 30, 1996
------------- -------------
(in thousands)
<S> <C> <C> <C> <C>
Net sales $40,352 100.0% $35,019 100.0%
Gross Profit 13,977 34.6 14,312 40.9
Licensing income 1,212 3.0 639 1.8
Selling, general and
administrative expenses 13,779 34.1 10,399 29.7
Operating income 1,410 3.5 4,552 13.0
Interest expense (income), net 87 .2 (26) 0.1
Income before income taxes 1,323 3.3 4,578 13.1
Income tax expense 529 1.3 1,877 5.4
Net income 794 2.0 2,701 7.7
Six Months ended
----------------
June 30, 1997 June 30, 1996
------------- -------------
(in thousands)
Net sales $ 85,262 100.0% $ 70,129 100.0%
Gross Profit 31,593 37.1 29,097 41.5
Licensing income 2,268 2.6 1,155 1.6
Selling, general and
administrative expenses 26,919 31.6 20,649 29.4
Operating income 6,942 8.1 9,603 13.7
Interest expense, net 199 .2 15 0.0
Income before income taxes 6,743 7.9 9,588 13.7
Income tax expense 2,697 3.2 3,931 5.6
Net income 4,046 4.7 5,657 8.1
</TABLE>
9
<PAGE>
Three Months Ended June 30, 1997 Compared to Three Months Ended June 30, 1996
Net sales increased $5.3 million, or 15.2%, to $40.4 million for the three
months ended June 30, 1997 compared with net sales of $35.0 million for the
three months ended June 30, 1996. Net sales of the Company's wholesale
operations, excluding sales to its retail division, increased $1.5 million, or
5.6%, to $29.0 million from $27.5 million. This increase was primarily due to an
increase in sales from Kenneth Cole branded men's footwear and Kenneth Cole
Reaction branded footwear. The increases were partially offset by a decrease in
sales of Kenneth Cole ladies footwear compared to the prior year, due to less
than expected sell-throughs at retail. Sales through the Company's retail and
outlet stores increased $3.8 million, or 50.3%, to $11.3 million for the three
months ended June 30, 1997, compared to the three months ended June 30, 1996.
This increase reflects the sales from twenty-seven stores which generated a 7.2%
increase in comparable store sales, the sales from nine stores open for the
entire second quarter of 1997, which were not open in the second quarter of 1996
and the sales from two stores which opened during the second quarter of 1997.
Gross profit was $14.0 million for the three months ended June 30, 1997, a
decrease of approximately $300,000, or 2.3%, from $14.3 million for the three
months ended June 30, 1996. As a percentage of net sales, gross profit was 34.6%
compared to 40.9%. This decrease in gross profit was primarily attributable to
lower than expected sell-throughs, which resulted in excess wholesale
inventories, which were disposed of at significant discounts. The decrease in
gross profit percentage is partially offset by an increase in retail store sales
as a percentage of total sales (retail gross margins being higher than wholesale
gross margins as a percentage of net sales).
The Company continues to expand its licensing efforts, resulting in an increase
in licensing income of approximately $600,000, or 89.7%, for the three months
ended June 30, 1997 compared to the three months ended June 30, 1996. This
increase reflects both incremental revenues from newly licensed products and
continually maturing existing licenses.
Selling, general and administrative expenses, including shipping and warehousing
costs, were $13.8 million (34.1% of net sales) for the three months ended June
30, 1997 compared to $10.4 million (29.7% of net sales) for the three months
ended June 30, 1996. The increase in selling, general and administrative
expenses as a percentage of net sales is primarily due to the additional retail
stores (which carry a higher expense level than the wholesale division) and
lower than planned wholesale sales, resulting in higher fixed overhead costs as
a percentage of sales.
As result of the foregoing, operating income decreased 69.0% to $1.4 million
(3.5% of net sales) from $4.6 million (13.0% of net sales) for the three months
ended June 30, 1997 and June 30, 1996, respectively.
10
<PAGE>
Six Months Ended June 30, 1997 Compared to Six Months Ended June 30, 1996
Net sales were $85.3 million in the first six months of 1997 compared to $70.1
million in the prior year's period, an increase of $15.2 million or 21.6%. Net
sales of the Company's wholesale operations, excluding sales to its retail
division increased $8.0 million or 14.2% to $65.1 million in the six months from
$57.0 million in last year's same period. This increase was due to increases in
volume from Kenneth Cole branded men's footwear, Unlisted branded women's
footwear and Unlisted and Kenneth Cole Reaction handbags. The sales volume
increase for these product lines were partially offset by a decline in sales
volume from Kenneth Cole branded ladies footwear. Sales through the Company's
retail and outlet stores increased $7.0 million or 53.8% to $20.1 million. This
increase reflects an 11.4% comparable store sales increase, the sales of eight
stores open for the entire first half of 1997, which were not open in the first
half of 1996 and the sales of three stores opened during the first six months of
1997.
Gross profit was $31.6 million in the six month period ended June 30, 1997, an
increase of $2.5 million or 8.6% from $29.1 million in the comparable period
last year. As a percentage of net sales, gross profit was 37.1% compared to
41.5%. This decrease was primarily due to lower than expected sell-throughs at
retail, which resulted in excess wholesale inventories, which were disposed of
at significant discounts.
Selling, general and administrative expenses, including shipping and warehousing
costs, were $26.9 million (31.6% of net sales) in the six month period of 1997
and $20.6 million (29.4% of net sales) in the comparable period last year. The
increase is attributable to the hiring of additional personnel to support the
Company's growth. The increase as a percentage of net sales is due to the
additional retail and outlet stores, which carry a higher expense level as a
percentage of sales than the wholesale division and lower than planned wholesale
sales, resulting in a higher percentage of fixed overhead costs.
As a result of the above, operating income decreased 27.7% in the six month
period of 1997 to $6.9 million (8.1% of net sales) from $9.6 million (13.7% of
net sales) in the same period last year.
11
<PAGE>
Liquidity and Capital Resources
The Company uses cash flows from operations and borrowings under its revolving
credit agreement as the primary sources of financing for its expansion and
seasonal requirements. Cash requirements vary from time to time as a result of
the timing of the receipt of merchandise from suppliers and the delivery by the
Company of merchandise to its customers. Cash used in operating activities was
$3.0 million for the six months ended June 30, 1997, compared to $1.4 million
for the six months ended June 30, 1996. The increase in cash used in operating
activities is attributable, in part, to the timing of the payment of income
taxes and trade payables. At June 30, 1997 and December 31, 1996, working
capital was $41.1 million and $37.0 million, respectively.
The Company currently has a line of credit, which allows for borrowings, letter
of credits and bankers acceptances up to a maximum of $25.0 million to finance
working capital requirements.
Capital expenditures totaled $1.4 million and $1.2 in the six months ended June
30, 1997 and 1996, respectively. Capital expenditures relate primarily to the
Company's retail and outlet store expansion and to the further development and
enhancement of the Company's management information systems.
The Company believes that cash flows from operations and borrowings under its
existing credit facility will be sufficient to satisfy the Company's working
capital requirements for the next twelve months.
Inflation and Currency Fluctuations
The Company believes that inflation and the effect of foreign currency
fluctuations has not had a material effect on the Company's results of
operations. The Company enters into forward exchange contracts to hedge the
purchase price of inventories purchased in foreign currencies.
Important Factors Relating to Forward Looking Statements
This report contains certain forward looking statements, as defined in The
Private Securities Litigation Reform Act of 1994, with respect to cash flows
from operations. The forward-looking statements contained in this Form 10-Q were
prepared by management and are qualified by, and subject to, significant
business, economic, competitive, regulatory and other uncertainties and
contingencies, all of which are difficult or impossible to predict and many of
which are beyond the control of the Company. Accordingly, there can be no
assurance that the forward-looking statements contained in this Form 10-Q will
be realized or that actual results will not be significantly higher or lower.
12
<PAGE>
Part II - OTHER INFORMATION
Item 1. Legal Proceedings. Incorporated by reference to the Financial Statements
included herein in Part I, Item I. See Notes to Consolidated Financial
Statements - Contingencies.
Item 2. Changes in Securities. None
Item 3. Defaults Upon Senior Securities. None
Item 4. Submission of Matters to a Vote of Security Holders.
(a) Kenneth Cole Productions, Inc. Annual Meeting of Shareholders was held
on May 29, 1997.
(b) Election of Directors - All nominees were elected through proxies
solicited pursuant to Regulation 14A under the Securities and Exchange
Act of 1934. There was no solicitation in opposition to management's
nominees as listed in the Proxy Statement, and each of the nominees
were elected to hold office until the next Annual Meeting of
Shareholders.
(c) Matters voted on at the Annual Meeting of Shareholders include the
election of directors the ratification of the selection of the
independent public accountants, and the amendment of the Kenneth Cole
1994 Employee Stock Option Plan to increase by 500,000 the number of
shares authorized for issuance.
The results of the election of directors were as follows:
For Withheld
--- --------
Paul Blum 63,936,401 109,400
Kenneth D. Cole 63,936,401 109,400
Maria Cuomo Cole 63,936,401 109,400
Robert C. Grayson 63,936,401 109,400
Denis F. Kelly 6,082,421 109,400
Jeffrey G. Lynn 6,082,421 109,400
Stanley A. Mayer 63,936,201 109,600
Holders of 6,191,821 shares of Class A Common Stock and 5,785,398 shares of
Class B Common Stock, constituting approximately 98.2% of the shares
entitled to vote, were present in person or by proxy at the Annual Meeting
of Shareholders. Each record holder of Class A Common Stock is entitled to
one vote per share, and each record holder of Class B Common Stock is
entitled to 10 votes per share. Holders of Class A Common Stock voted
separately to elect Jeffrey G. Lynn and Denis Kelly.
13
<PAGE>
With regard to the ratification of the appointment of Ernst & Young LLP as
the independent certified public accountants, the results were as follows:
FOR AGAINST ABSTAIN
--- ------- -------
64,040,456 3,345 2,000
With regard to the resolution to amend the Kenneth Cole 1994 Employee Stock
Option Plan to increase by 500,000 the number of shares authorized for
issuance thereunder, the results were as follows:
FOR AGAINST ABSTAIN
--- ------- -------
59,970,573 2,802,498 4,620
Item 5. Other Information. None
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits:
27 Financial Data Schedule.
(b) Reports on Form 8-K: The Company did not file any reports on Form 8-K
during the three months ended June 30, 1997.
14
<PAGE>
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.
Kenneth Cole Productions, Inc.
------------------------------
Registrant
August 12, 1997 /s/ STANLEY A. MAYER
----------------------
Stanley A. Mayer
Executive Vice President and
Chief Financial Officer
15
<PAGE>
INDEX OF EXHIBITS
Sequential
Exhibit Number: Description Page No.
- - --------------- ----------- --------
27 Financial Data Schedule. 17
16
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
KENNETH COLE PRODUCTIONS, INC. CONSOLIDATED BALANCE SHEET AS OF JUNE 30,
1997, AND THE CONSOLIDATED STATEMENT OF INCOME FOR THE SIX MONTHS ENDED
JUNE 30, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 1,406
<SECURITIES> 0
<RECEIVABLES> 22,951
<ALLOWANCES> 65
<INVENTORY> 29,302
<CURRENT-ASSETS> 55,220
<PP&E> 14,125
<DEPRECIATION> 4,324
<TOTAL-ASSETS> 67,303
<CURRENT-LIABILITIES> 14,108
<BONDS> 0
0
0
<COMMON> 132
<OTHER-SE> 50,855
<TOTAL-LIABILITY-AND-EQUITY> 67,303
<SALES> 85,262
<TOTAL-REVENUES> 85,262
<CGS> 53,669
<TOTAL-COSTS> 53,669
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 199
<INCOME-PRETAX> 6,743
<INCOME-TAX> 2,697
<INCOME-CONTINUING> 4,046
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,046
<EPS-PRIMARY> .30
<EPS-DILUTED> .30
</TABLE>
