<PAGE> 1
UNITED STATES 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 September 24, 1999
Commission file number 0-26188
PALM HARBOR HOMES, INC.
---------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Florida 59-1036634
- ------------------------------- ---------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification Number)
incorporation or organization)
15303 Dallas Parkway, Suite 800, Addison, Texas 75001-4600
---------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
972-991-2422
-----------------------------------------------------
(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) Yes X No__ and (2) has been subject to such
filing requirements for the past 90 days. Yes X No .
--- ----
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Shares of common stock $.01 par value, outstanding on October 29, 1999 -
22,883,116.
<PAGE> 2
PALM HARBOR HOMES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
<TABLE>
<CAPTION>
SEPTEMBER 24, MARCH 26,
1999 1999
-------------- --------------
ASSETS (Unaudited)
<S> <C> <C>
Cash and cash equivalents $ 38,633 $ 39,413
Investments 19,301 17,167
Receivables 83,980 79,219
Inventories 128,637 122,662
Other current assets 5,604 6,349
-------------- --------------
Total current assets 276,155 264,810
Other assets 80,829 82,034
Property, plant and equipment, net 83,225 80,566
-------------- --------------
TOTAL ASSETS $ 440,209 $ 427,410
============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable $ 41,076 $ 41,847
Floor plan payable 137,500 128,852
Accrued liabilities 50,105 53,562
Current portion of long-term debt 242 233
-------------- --------------
Total current liabilities 228,923 224,494
Long-term debt, less current portion 3,025 3,149
Deferred income taxes 3,947 4,442
Shareholders' equity:
Common stock, $.01 par value 239 239
Additional paid-in capital 54,149 54,149
Retained earnings 166,372 143,681
-------------- --------------
220,760 198,069
Less treasury shares (13,755) (442)
Unearned compensation (2,691) (2,302)
-------------- --------------
Total shareholders' equity 204,314 195,325
-------------- --------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 440,209 $ 427,410
============== ==============
</TABLE>
See accompanying notes.
1
<PAGE> 3
PALM HARBOR HOMES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
SEPTEMBER 24, SEPTEMBER 25, SEPTEMBER 24, SEPTEMBER 25,
1999 1998 1999 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Net sales $ 193,678 $ 190,853 $ 412,253 $ 394,983
Cost of sales 130,168 133,000 281,233 279,833
Selling, general and
administrative expenses 46,509 38,382 93,620 77,291
------------- ------------- ------------- -------------
Income from operations 17,001 19,471 37,400 37,859
Interest expense (2,436) (2,750) (4,818) (5,000)
Other income 2,741 715 4,078 1,399
------------- ------------- ------------- -------------
Income before income taxes 17,306 17,436 36,660 34,258
Income tax expense 6,799 7,011 14,538 13,708
------------- ------------- ------------- -------------
Net income $ 10,507 $ 10,425 $ 22,122 $ 20,550
============= ============= ============= =============
Net income per common share -
basic and diluted $ 0.45 $ 0.44 $ 0.94 $ 0.86
============= ============= ============= =============
Weighted average common
shares outstanding - basic 23,428 23,786 23,595 23,787
============= ============= ============= =============
Weighted average common
shares outstanding - diluted 23,459 23,845 23,631 23,847
============= ============= ============= =============
</TABLE>
See accompanying notes.
2
<PAGE> 4
PALM HARBOR HOMES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
SEPTEMBER 24, SEPTEMBER 25,
1999 1998
-------------- --------------
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 22,122 $ 20,550
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 4,493 3,580
Amortization 2,021 1,969
Deferred income tax benefit (495) (257)
Gain on sale of loans (6,087) (5,303)
Purchases of stock for long-term incentive plan (939) --
Provision for long-term incentive plan 550 --
Gain on disposition of assets -- (45)
Changes in operating assets and liabilities:
Trade accounts receivable 2,992 1,799
Inventories (5,975) 4,627
Other current assets 745 (535)
Other assets (816) (1,153)
Accounts payable and accrued liabilities (4,228) 5,581
-------------- --------------
Cash provided by operations 14,383 30,813
Loans originated (80,093) (88,678)
Sales of loans 78,996 83,821
-------------- --------------
Net cash provided by operating activities 13,286 25,456
INVESTING ACTIVITIES
Purchases of property, plant and equipment (7,152) (8,601)
Purchases of investments (5,058) (35,142)
Sales of investments 2,924 4,658
Proceeds from disposition of assets -- 97
-------------- --------------
Net cash used in investing activities (9,286) (38,988)
FINANCING ACTIVITIES
Net proceeds from floor plan payable 8,648 26,961
Payments on line of credit -- (17,000)
Principal payments on notes payable and long-term debt (115) (834)
Net purchases of treasury stock (13,313) (162)
-------------- --------------
Net cash (used in) provided by financing activities (4,780) 8,965
-------------- --------------
Net decrease in cash and cash equivalents (780) (4,567)
Cash and cash equivalents at beginning of period 39,413 21,073
-------------- --------------
Cash and cash equivalents at end of period $ 38,633 $ 16,506
============== ==============
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest $ 5,096 $ 4,680
Income taxes 15,368 15,412
</TABLE>
See accompanying notes.
3
<PAGE> 5
PALM HARBOR HOMES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Basis of Presentation
The condensed consolidated financial statements reflect all
adjustments, which include only normal recurring adjustments, which
are, in the opinion of management, necessary for a fair and accurate
presentation. Certain footnote disclosures normally included in
financial statements prepared in accordance with generally accepted
accounting principles have been omitted. The condensed consolidated
financial statements should be read in conjunction with the audited
financial statements for the year ended March 26, 1999. Results of
operations for any interim period are not necessarily indicative of
results to be expected for a full year.
2. Stock Dividend
On June 30, 1998, the Board of Directors of the Company declared a
5-for-4 stock split effected in the form of a 25% stock dividend to
shareholders of record on July 14, 1998. The stock dividend was paid on
July 28, 1998. Historical common share and per share data for fiscal
1999 have been adjusted to reflect the stock split.
3. Inventories
Inventories consist of the following (in thousands):
<TABLE>
<CAPTION>
SEPTEMBER 24, MARCH 26,
1999 1999
--------------- ---------------
<S> <C> <C>
Raw materials $ 9,255 $ 8,936
Work in process 3,601 3,208
Finished goods - manufacturing 1,074 247
- retail 114,707 110,271
--------------- ---------------
$ 128,637 $ 122,662
=============== ===============
</TABLE>
4. Other Assets
Other assets include goodwill of $67.1 million at September 24, 1999
and $66.1 million at March 26, 1999, with accumulated amortization of
$8.8 million and $6.9 million, respectively.
5. Floor Plan Payable
The Company has floor plan credit facilities totaling $150.0 million
from financial institutions to finance a major portion of its home
inventory at the Company's retail superstores. These facilities are
secured by a portion of the Company's home inventory and cash in
transit from financial institutions. Interest rates range from prime
(8.25% at September 24, 1999) to prime minus .50%. The Company had
$137.5 million and $128.9 million outstanding on these floor plan
credit facilities at September 24, 1999 and March 26, 1999,
respectively.
The Company's floor plan financing agreement with one of the financial
institutions permits the Company to earn interest on investments made
with the financial institution, which can be withdrawn without any
imposed restrictions. The interest rate on the outstanding borrowings
is prime (8.25% at September 24, 1999). The agreement also calls for a
minimum of $50.0
4
<PAGE> 6
million to be maintained as the outstanding balance on the related
credit facility. The agreement is effective until December 31, 1999.
The Company had $36.0 million invested at September 24, 1999 and March
26, 1999 and has classified these amounts as Cash and Cash Equivalents
in the accompanying Condensed Consolidated Balance Sheets.
6. Line of Credit
The Company has a $25.0 million unsecured revolving line of credit from
a financial institution for general corporate purposes. The line of
credit bears interest, at the option of the Company (under certain
conditions), at either the LIBOR rate (5.26% at September 24, 1999)
plus .625% or the prime rate (8.25% at September 24, 1999) minus 1.0%.
The line of credit contains provisions regarding minimum net worth
requirements and certain indebtedness limitations, which would limit
the amount available for future borrowings.
On June 28, 1999, the line of credit agreement was amended to provide a
$10.0 million unsecured revolving line of credit and a $15.0 million
uncommitted line of credit. The amended line is available through June
27, 2000 and requires an annual commitment fee of up to $12,500. The
Company had zero outstanding on the line of credit at September 24,
1999 and March 26, 1999.
7. Reclassification
Certain prior period amounts have been reclassified to conform to the
current period presentation.
5
<PAGE> 7
8. Business Segment Information
The Company operates primarily in three business segments, retail
sales, manufacturing and financial services. The following table
summarizes information with respect to the Company's business segments
for the periods ending September 24, 1999 and September 25,1998 (in
thousands):
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
SEPTEMBER 24, SEPTEMBER 25, SEPTEMBER 24, SEPTEMBER 25,
1999 1998 1999 1998
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Net sales
Retail $ 168,282 $ 158,207 $ 346,319 $ 317,910
Manufacturing 121,861 123,849 262,170 251,996
Financial services 6,220 6,060 12,791 12,738
-------------- -------------- -------------- --------------
296,363 288,116 621,280 582,644
Intersegment sales (102,685) (97,263) (209,027) (187,661)
-------------- -------------- -------------- --------------
$ 193,678 $ 190,853 $ 412,253 $ 394,983
============== ============== ============== ==============
Income from operations
Retail $ 7,271 $ 6,945 $ 15,673 $ 14,825
Manufacturing 11,301 11,604 23,966 21,512
Financial services 3,344 3,507 7,049 7,004
General corporate expenses (4,556) (2,781) (8,176) (5,323)
-------------- -------------- -------------- --------------
17,360 19,275 38,512 38,018
Intersegment profits (359) 196 (1,112) (159)
-------------- -------------- -------------- --------------
$ 17,001 $ 19,471 $ 37,400 $ 37,859
============== ============== ============== ==============
Interest expense $ (2,436) $ (2,750) $ (4,818) $ (5,000)
Other income 2,741 715 4,078 1,399
-------------- -------------- -------------- --------------
Income before taxes $ 17,306 $ 17,436 $ 36,660 $ 34,258
============== ============== ============== ==============
</TABLE>
6
<PAGE> 8
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
See pages 1 through 5.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
The following table sets forth certain items of the Company's statement of
income as a percentage of net sales for the period indicated.
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
SEPTEMBER 24, SEPTEMBER 25, SEPTEMBER 24, SEPTEMBER 25,
1999 1998 1999 1998
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Net sales 100.0% 100.0% 100.0% 100.0%
Cost of sales 67.2 69.7 68.2 70.8
-------------- -------------- -------------- --------------
Gross profit 32.8 30.3 31.8 29.2
Selling, general and
administrative expenses 24.0 20.1 22.7 19.6
-------------- -------------- -------------- --------------
Income from operations 8.8 10.2 9.1 9.6
Interest expense (1.3) (1.4) (1.2) (1.3)
Other income 1.4 0.4 1.0 0.4
-------------- -------------- -------------- --------------
Income before income taxes 8.9 9.2 8.9 8.7
Income tax expense 3.5 3.7 3.5 3.5
-------------- -------------- -------------- --------------
Net income 5.4% 5.5% 5.4% 5.2%
============== ============== ============== ==============
</TABLE>
7
<PAGE> 9
The following table summarizes certain key sales statistics as of and for the
three and six months ended September 24, 1999 and September 25, 1998.
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
SEPTEMBER 24, SEPTEMBER 25, SEPTEMBER 24, SEPTEMBER 25,
1999 1998 1999 1998
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Company homes sold through
Company-owned retail superstores 2,798 2,513 5,791 4,994
Total new homes sold 3,604 3,919 7,808 8,128
Internalization rate(1) 78% 64% 74% 61%
Average new home price - retail $ 58,000 $ 55,000 $ 57,000 $ 54,000
Number of retail superstores at
end of period 129 104 129 104
Homes sold to independent retailers 751 1,131 1,868 2,444
</TABLE>
(1) The internalization rate is the percentage of new homes that are
manufactured by the Company and sold through Company-owned retail
superstores.
THREE MONTHS ENDED SEPTEMBER 24, 1999 COMPARED TO THREE MONTHS ENDED SEPTEMBER
25, 1998
NET SALES. Net sales increased 1.5% to $193.7 million in the three months
ended September 24, 1999 from $190.9 million in the three months ended September
25,1998. The 1.5% increase in net sales was primarily due to an increase in the
volume of homes sold through Company-owned retail superstores. Net sales were
also impacted by the increase in retail stock inventory as the number of
Company-owned retail superstores increased from 104 at the end of the second
quarter of fiscal 1999 to 129 at the end of the second quarter of fiscal 2000.
GROSS PROFIT. Gross profit increased 2.4% to $63.5 million in the quarter
ended September 24, 1999 compared to $57.9 million in the quarter ended
September 25, 1998. During the same period, gross profit margin as a percentage
of net sales increased to 32.8% compared to 30.3%. This increase was the result
of selling 78% of the Company's homes through Company-owned retail superstores
in the second quarter of fiscal 2000 versus 64% in the second quarter of fiscal
1999.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES. Selling, general and
administrative expenses increased 21.2% to $46.5 million in the quarter ended
September 24, 1999 from $38.4 million in the quarter ended September 25, 1998,
primarily due to a planned increase in promotion and advertising expenditures,
expenses associated with the 25 additional retail superstores, and performance
based compensation expense. As a percentage of net sales, selling, general and
administrative expenses
8
<PAGE> 10
increased, as planned, to 24.0% in the second quarter of fiscal 2000 from 20.1%
in the second quarter of fiscal 1999. This increase is due to the growth in the
Company's retail operations which, generally, have higher selling, general and
administrative expenses as a percentage of net sales as compared to wholesale
operations.
OTHER INCOME. Other income increased $2.0 million to $2.7 million in the
second quarter of fiscal 2000 from $0.7 million in the second quarter of fiscal
1999. This increase was primarily the result of gains on the disposition of
certain properties and additional investment income.
SIX MONTHS ENDED SEPTEMBER 24, 1999 COMPARED TO SIX MONTHS ENDED SEPTEMBER 25,
1998
NET SALES. Net sales increased 4.4% to $412.3 million in the six months
ended September 24, 1999 of fiscal 2000 from $395.0 million in the six months
ended September 25,1998. The 4.4% increase in net sales was primarily due to an
increase in the volume of homes sold through Company-owned retail superstores.
Net sales were also impacted by the increase in retail stock inventory as the
number of Company-owned retail superstores increased from 104 at the end of the
second quarter of fiscal 1999 to 129 at the end of the second quarter of fiscal
2000.
GROSS PROFIT. Gross profit increased 13.8% to $131.0 million in the six
months ended September 24, 1999 compared to $115.2 million in the six months
ended September 25, 1998. During the same period, gross profit margin as a
percentage of net sales increased to 31.8% compared to 29.2%. This increase was
the result of production efficiencies at our manufacturing facilities and
selling 74% of the Company's homes through Company-owned retail superstores in
the six months ended September 24, 1999 versus 61% in the six months ended
September 25, 1998.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES. Selling, general and
administrative expenses increased 21.1% to $93.6 million in the six months ended
September 24, 1999 from $77.3 million in the six months ended September 25,
1998, primarily due to a planned increase in promotion and advertising
expenditures, expenses associated with the 25 additional retail superstores, and
performance-based compensation expense. As a percentage of net sales, selling,
general and administrative expenses increased, as planned, to 22.7% in the six
months ended September 24, 1999 from 19.6% in the six months ended September 25,
1998. This increase is due to the growth in the Company's retail
9
<PAGE> 11
operations which, generally, have higher selling, general and administrative
expenses as a percentage of net sales as compared to wholesale operations.
OTHER INCOME. Other income increased $2.7 million to $4.1 million in the
six months ended September 24, 1999 from $1.4 million in the six months ended
September 25, 1998. This increase was primarily the result of gains on the
disposition of certain properties and additional investment income.
LIQUIDITY AND CAPITAL RESOURCES. The Company has floor plan credit
facilities totaling $150.0 million from financial institutions to finance a
major portion of its home inventory at the Company's retail superstores. These
facilities are secured by a portion of the Company's home inventory and cash in
transit from financial institutions. Interest rates range from prime (8.25% at
September 24, 1999) to prime minus .50%. The Company had $137.5 million and
$128.9 million outstanding on these credit facilities at September 24, 1999 and
March 26, 1999, respectively.
The Company's floor plan financing agreement with one of the financial
institutions permits the Company to earn interest on investments made with the
financial institution, which can be withdrawn without any imposed restriction.
The interest rate on the outstanding borrowings is prime (8.25% at September
24,1999). The agreement also calls for a minimum of $50.0 million to be
maintained as the outstanding balance on the related credit facility. The
agreement is effective until December 31, 1999. The Company expects to renew the
current credit facility or obtain a similar facility with another financial
institution. The Company had $36.0 million invested at September 24, 1999 and
March 26, 1999 and has classified these amounts as Cash and Cash Equivalents in
the accompanying Condensed Consolidated Balance Sheets.
The Company has a $10.0 million unsecured revolving line of credit and a
$15.0 million uncommitted line of credit for general corporate purposes. The
line of credit bears interest, at the option of the Company (under certain
conditions), at either the LIBOR rate (5.26% at September 24, 1999) plus .625%
or the prime rate (8.25% at September 24, 1999) minus 1.0%. The line of credit
contains provisions regarding minimum net worth requirements and certain
indebtedness limitations which would limit the amount available for future
borrowings. The line is available through June 27, 2000 and requires an annual
commitment fee of up to $12,500. The Company had zero outstanding on the line of
credit at September 24, 1999 and March 26, 1999.
10
<PAGE> 12
In June 1999, the Company's Board of Directors authorized, subject to
certain business and market conditions, the use of up to $20.0 million to
repurchase the Company's common stock. As of October 29,1999, the Company had
invested $14.7 million in the common stock buyback program.
The Company believes that cash flow from operations, together with floor
plan financing and the revolving line of credit, will be adequate to support its
working capital, currently planned capital expenditure needs and future share
repurchases in the foreseeable future. The Company may, from time to time,
obtain additional floor plan financing for its retail inventories. Such practice
is customary in the industry. However, because future cash flows and the
availability of financing will depend on a number of factors, including
prevailing economic and financial conditions, business and other factors beyond
the Company's control, no assurances can be given in this regard.
YEAR 2000 ISSUE. The "Year 2000 Issue" is the result of computer programs
that use two digits instead of four to record the applicable year. Computer
programs that have date-sensitive software may be unable to properly categorize
and process dates occurring after December 31, 1999. This could result in a
system failure or miscalculations in the Company's computer programs causing
significant, unanticipated liabilities, expenses and possible disruption of its
business.
Based on an assessment by the Company of operating, financial and
management information systems, the Company implemented a plan during the third
quarter of fiscal 1997 to modify or upgrade certain equipment and software
necessary to address the Year 2000 Issue. Costs are estimated to be
significantly less than $0.5 million. The plan is designed to utilize resources
from within the Company with minimal impact on other non-Year 2000 Issue
management information system projects. Under the plan, all modifications and
upgrading of critical systems were completed by September 30, 1999. The Company
is currently testing the modifications and expects testing to be complete by
December 31, 1999.
Additionally, risk of business disruption exists if Year 2000
Issue-related failures occur among the Company's lenders, suppliers,
transporters and others upon which the Company relies, but over which the
Company has no control. There can be no guarantee that the systems of these
third parties on which the Company relies will be modified on a timely basis and
will not have an adverse effect on the Company's systems or operations. The
Company is maintaining contact with these critical third parties to determine
the extent to which the Company would be affected if there were Year 2000
Issue-related
11
<PAGE> 13
failures among these third parties. To date no known Year 2000 Issue-related
failures among these third parties exist.
There are no formal contingency plans in place if the company does not
complete all Year 2000 management information system projects. The Year 2000
Issue is being closely monitored, and additional measures will be taken as risks
are determined.
FORWARD-LOOKING INFORMATION. Certain statements contained in this report
are forward-looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934. Management is unaware of any trends or
conditions that could have a material adverse effect on the Company's
consolidated financial position, future results of operations or liquidity.
However, investors should also be aware of factors, which could have a negative
impact on prospects and the consistency of progress. These include political,
economic or other factors such as inflation rates, recessionary or expansive
trends, taxes and regulations and laws affecting the business in each of the
Company's markets; competitive product, advertising, promotional and pricing
activity; dependence on the rate of development and degree of acceptance of new
product introductions in the marketplace; and the difficulty of forecasting
sales at certain times in certain markets.
12
<PAGE> 14
PART II. OTHER INFORMATION
Item 1. Legal Proceedings - Not applicable
Item 2. Changes in Securities - Not applicable
Item 3. Defaults upon Senior Securities - Not applicable
Item 4. Submission of Matters to a Vote by Security Holders - not
applicable
Item 5. Other Information - Not applicable
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibit 27 - Financial Date Schedule (EDGAR filing
only).
(b) Reports on Form 8-K - Not applicable
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 thereto duly authorized.
Date: November 2, 1999
Palm Harbor Homes, Inc.
----------------------------------------
(Registrant)
By: /s/ Kelly Tacke
----------------------------------------
Kelly Tacke
Chief Financial and Accounting Officer
By: /s/ Lee Posey
----------------------------------------
Lee Posey
Chairman of the Board
13
<PAGE> 15
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
- ------- -----------
<S> <C>
27 Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 24, 1999 AND CONSOLIDATED
STATEMENT OF INCOME FOR THE SIX MONTHS ENDED SEPTEMBER 24, 1999 LOCATED IN THE
COMPANY'S 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS AND THE NOTES THERETO.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-2000
<PERIOD-START> MAR-27-1999
<PERIOD-END> SEP-24-1999
<CASH> 38,633
<SECURITIES> 19,301
<RECEIVABLES> 83,980
<ALLOWANCES> 0
<INVENTORY> 128,637
<CURRENT-ASSETS> 276,155
<PP&E> 83,225
<DEPRECIATION> 0
<TOTAL-ASSETS> 440,209
<CURRENT-LIABILITIES> 228,923
<BONDS> 3,025
0
0
<COMMON> 239
<OTHER-SE> 204,075
<TOTAL-LIABILITY-AND-EQUITY> 440,209
<SALES> 412,253
<TOTAL-REVENUES> 412,253
<CGS> 281,233
<TOTAL-COSTS> 281,233
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 4,818
<INCOME-PRETAX> 36,660
<INCOME-TAX> 14,538
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 22,122
<EPS-BASIC> .94
<EPS-DILUTED> .94
</TABLE>
