<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 December 31, 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 (I.R.S. Employer
of incorporation or organization) Identification Number)
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 February 4, 2000 -
22,852,024.
<PAGE> 2
PALM HARBOR HOMES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
<TABLE>
<CAPTION>
DECEMBER 31, MARCH 26,
1999 1999
------------ ---------
<S> <C> <C>
ASSETS (Unaudited)
Cash and cash equivalents $ 49,114 $ 39,413
Investments 19,805 17,167
Receivables 74,762 79,219
Inventories 121,952 122,662
Other current assets 6,098 6,349
--------- ---------
Total current assets 271,731 264,810
Other assets 78,821 82,034
Property, plant and equipment, net 86,451 80,566
--------- ---------
TOTAL ASSETS $ 437,003 $ 427,410
========= =========
LIABILITIES AND SHAREHOLDERS'EQUITY
Accounts payable $ 35,938 $ 41,847
Floor plan payable 130,295 128,852
Accrued liabilities 51,971 53,562
Current portion of long-term debt 247 233
--------- ---------
Total current liabilities 218,451 224,494
Long-term debt, less current portion 2,962 3,149
Deferred income taxes 3,604 4,442
Shareholders' equity:
Common stock, $.01 par value 239 239
Additional paid-in capital 54,149 54,149
Retained earnings 176,037 143,681
--------- ---------
230,425 198,069
Less treasury shares (16,152) (442)
Unearned compensation (2,287) (2,302)
--------- ---------
Total shareholders' equity 211,986 195,325
--------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 437,003 $ 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 NINE MONTHS ENDED
DECEMBER 31, DECEMBER 25, DECEMBER 31, DECEMBER 25,
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net sales $ 187,617 $ 186,054 $ 599,870 $ 581,037
Cost of sales 127,041 129,917 408,274 409,750
Selling, general and
administrative expenses 43,256 40,268 136,876 117,559
------------ ------------ ------------ ------------
Income from operations 17,320 15,869 54,720 53,728
Interest expense (2,700) (2,356) (7,518) (7,356)
Other income 1,179 2,218 5,257 3,617
------------ ------------ ------------ ------------
Income before income taxes 15,799 15,731 52,459 49,989
Income tax expense 6,325 6,291 20,863 19,999
------------ ------------ ------------ ------------
Net income $ 9,474 $ 9,440 $ 31,596 $ 29,990
============ ============ ============ ============
Net income per common share -
basic and diluted $ 0.41 $ 0.40 $ 1.35 $ 1.26
============ ============ ============ ============
Weighted average common
shares outstanding - basic 22,888 23,780 23,348 23,784
============ ============ ============ ============
Weighted average common
shares outstanding - diluted 22,913 23,828 23,380 23,841
============ ============ ============ ============
</TABLE>
See accompanying notes.
2
<PAGE> 4
PALM HARBOR HOMES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
DECEMBER 31, DECEMBER 25,
1999 1998
------------ ------------
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 31,596 $ 29,990
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 6,967 5,541
Amortization 3,033 2,971
Deferred income tax benefit (838) (379)
Gain on sale of loans (2,253) (8,668)
Purchases of stock for long-term incentive plan (986) --
Provision for long-term incentive plan 826 --
Gain on disposition of assets -- (45)
Changes in operating assets and liabilities:
Trade accounts receivable 8,934 (1,685)
Inventories 710 (8,056)
Other current assets 251 (891)
Other assets 180 (2,648)
Accounts payable and accrued liabilities (7,500) 2,285
------------ ------------
Cash provided by operations 40,920 18,415
Loans originated (118,920) (121,329)
Sales of loans 117,456 114,281
------------ ------------
Net cash provided by operating activities 39,456 11,367
INVESTING ACTIVITIES
Purchases of property, plant and equipment (12,852) (13,419)
Purchases of investments (5,562) (17,245)
Sales of investments 2,924 8,087
Proceeds from disposition of assets -- 97
------------ ------------
Net cash used in investing activities (15,490) (22,480)
FINANCING ACTIVITIES
Net proceeds from floor plan payable 1,443 43,182
Payments on line of credit -- (17,000)
Principal payments on notes payable and long-term debt (173) (888)
Net purchases of treasury stock (15,535) (245)
------------ ------------
Net cash (used in) provided by financing activities (14,265) 25,049
Net increase in cash and cash equivalents 9,701 13,936
Cash and cash equivalents at beginning of period 39,413 21,073
------------ ------------
Cash and cash equivalents at end of period $ 49,114 $ 35,009
============ ============
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest $ 7,752 $ 6,923
Income taxes 20,882 21,063
</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. Inventories
Inventories consist of the following (in thousands):
<TABLE>
<CAPTION>
DECEMBER 31, MARCH 26,
1999 1999
------------- -------------
<S> <C> <C>
Raw materials $ 8,899 $ 8,936
Work in process 3,346 3,208
Finished goods - manufacturing 969 247
- retail 108,738 110,271
------------- -------------
$ 121,952 $ 122,662
============= =============
</TABLE>
3. Other Assets
Other assets include goodwill of $67.3 million at December 31, 1999, and
$66.1 million at March 26, 1999, with accumulated amortization of $9.8
million and $6.9 million, respectively.
4. Floor Plan Payable
The Company has a floor plan credit facility totaling $175.0 million from a
financial institution to finance a major portion of its home inventory at
the Company's retail superstores. This facility is secured by a portion of
the Company's home inventory and cash in transit from financial
institutions. The interest rate on the facility is prime (8.50% at December
31, 1999). The agreement is effective until June 30, 2001. The Company had
$130.3 million and $128.9 million outstanding on the floor plan credit
facility at December 31, 1999 and March 26, 1999, respectively.
The Company's floor plan financing agreement permits the Company to earn
interest on investments made with the financial institution, which can be
withdrawn without any imposed restrictions. The Company is eligible to
invest up to fifty percent of the floor plan balance provided that the net
of the floor plan balance and investment balance does not fall below $60.0
million. The interest rate on the outstanding borrowings is prime (8.50% at
December 31, 1999). The Company had $40.0 million and $36.0 million
invested at December 31, 1999 and March 26, 1999, respectively, and has
classified these amounts as Cash and Cash Equivalents in the accompanying
Condensed Balance Sheets.
4
<PAGE> 6
5. 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 (5.82% at December 31, 1999) plus 1.20% or the prime
rate (8.50% at December 31, 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 December 31, 1999 and March 26, 1999.
6. Reclassification
Certain prior period amounts have been reclassified to conform to the
current period presentation.
7. 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 December 31, 1999 and December 25,1998 (in thousands):
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
DECEMBER 31, DECEMBER 25, DECEMBER 31, DECEMBER 25,
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net sales
Retail $ 164,398 $ 147,057 $ 510,717 $ 464,967
Manufacturing 112,323 131,179 374,493 383,175
Financial services 5,926 5,876 18,717 18,614
------------ ------------ ------------ ------------
282,647 284,112 903,927 866,756
Intersegment sales (95,030) (98,058) (304,057) (285,719)
------------ ------------ ------------ ------------
$ 187,617 $ 186,054 $ 599,870 $ 581,037
------------ ------------ ------------ ------------
Income from operations
Retail $ 8,354 $ 5,662 $ 24,027 $ 20,487
Manufacturing 9,002 12,975 32,968 34,487
Financial services 3,271 3,058 10,320 10,062
General corporate expenses (3,971) (4,122) (12,147) (9,445)
------------ ------------ ------------ ------------
16,656 17,573 55,168 55,591
Intersegment profits 664 (1,704) (448) (1,863)
------------ ------------ ------------ ------------
$ 17,320 $ 15,869 $ 54,720 $ 53,728
------------ ------------ ------------ ------------
Interest expense $ (2,700) $ (2,356) $ (7,518) $ (7,356)
Other income 1,179 2,218 5,257 3,617
------------ ------------ ------------ ------------
Income before taxes $ 15,799 $ 15,731 $ 52,459 $ 49,989
============ ============ ============ ============
</TABLE>
5
<PAGE> 7
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 NINE MONTHS ENDED
DECEMBER 31, DECEMBER 25, DECEMBER 31, DECEMBER 25,
1999 1998 1999 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Net sales 100.0% 100.0% 100.0% 100.0%
Cost of sales 67.7 69.8 68.1 70.5
------------- ------------- ------------- -------------
Gross profit 32.3 30.2 31.9 29.5
Selling, general and
administrative expenses 23.1 21.6 22.8 20.2
------------- ------------- ------------- -------------
Income from operations 9.2 8.6 9.1 9.3
Interest expense (1.4) (1.3) (1.3) (1.3)
Other income 0.6 1.2 0.9 0.6
------------- ------------- ------------- -------------
Income before income taxes 8.4 8.5 8.7 8.6
Income tax expense 3.4 3.4 3.5 3.4
------------- ------------- ------------- -------------
Net income 5.0% 5.1% 5.2% 5.2%
============= ============= ============= =============
</TABLE>
6
<PAGE> 8
The following table summarizes certain key sales statistics as of and for the
three and nine months ended December 31, 1999 and December 25, 1998.
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
DECEMBER 31, DECEMBER 25, DECEMBER 31, DECEMBER 25,
1999 1998 1999 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Company homes sold through
Company-owned retail superstores 2,694 2,418 8,485 7,412
Total new homes sold 3,421 3,781 11,229 11,909
Internalization rate (1) 79% 64% 76% 62%
Average new home price - retail $ 59,000 $ 56,000 $ 57,000 $ 55,000
Number of retail superstores at
end of period 132 111 132 111
Homes sold to independent retailers 713 1,258 2,581 3,702
</TABLE>
(1) The internalization rate is the percentage of new homes that are
manufactured by the Company and sold through Company-owned retail
superstores.
The Company's fiscal year consists of 52 or 53 weeks, ending on the Friday
nearest the last day of March each year. The 1999 fiscal year was 52 weeks long
and the 2000 fiscal year is 53 weeks long. Therefore, the three months ended
December 31, 1999 contained 14 weeks while the three months ended December 25,
1998 contained 13 weeks.
THREE MONTHS ENDED DECEMBER 31, 1999 COMPARED TO THREE MONTHS ENDED DECEMBER 25,
1998
NET SALES. Net sales increased 0.8% to $187.6 million in the three
months ended December 31, 1999 from $186.1 million in the three months ended
December 25,1998. This increase reflects a 7.3% increase in the volume of homes
sold through Company-owned retail superstores offset by an overall volume
decline of 9.5%, which includes homes sold to independent retailers. The number
of superstores increased from 111 at the end of the third quarter of fiscal 1999
to 132 at the end of the third quarter of fiscal 2000.
GROSS PROFIT. Gross profit increased 7.9% to $60.6 million in the
quarter ended December 31, 1999 compared to $56.1 million in the quarter ended
December 25, 1998. During the same period, gross profit margin as a percentage
of net sales increased to 32.3% compared to 30.2%. This increase was the result
of selling 79% of the Company's homes through Company-owned retail superstores
in the third quarter of fiscal 2000 versus 64% in the third quarter of fiscal
1999.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES. Selling, general and
administrative expenses increased 7.4% to $43.3 million in the
7
<PAGE> 9
quarter ended December 31, 1999 from $40.3 million in the quarter ended December
25, 1998, primarily due to the Company's continued commitment to brand
advertising, expenses associated with the 21 additional retail superstores, and
performance based compensation expense. As a percentage of net sales, selling,
general and administrative expenses increased, as planned, to 23.1% in the third
quarter of fiscal 2000 from 21.6% in the third 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 decreased $1.0 million to $1.2 million in
the third quarter of fiscal 2000 from $2.2 million in the third quarter of
fiscal 1999. This decrease is the result of gains on sales of investments in the
third quarter of fiscal 1999, which did not occur in the third quarter of fiscal
2000.
NINE MONTHS ENDED DECEMBER 31, 1999 COMPARED TO NINE MONTHS ENDED DECEMBER 25,
1998
NET SALES. Net sales increased 3.2% to $599.9 million in the nine
months ended December 31, 1999 from $581.0 million in the nine months ended
December 25,1998. This increase reflects an increase of 5.4% in the volume of
homes sold through Company-owned retail superstores offset by an overall volume
decline of 5.7%, which includes homes sold to independent retailers. The number
of superstores increased from 111 at the end of the third quarter of fiscal 1999
to 132 at the end of the third quarter of fiscal 2000.
GROSS PROFIT. Gross profit increased 11.9% to $191.6 million in the
nine months ended December 31, 1999 compared to $171.3 million in the nine
months ended December 25, 1998. During the same period, gross profit margin as a
percentage of net sales increased to 31.9% compared to 29.5%. This increase was
the result of production efficiencies at our manufacturing facilities and
selling 76% of the Company's homes through Company-owned retail superstores in
the nine months ended December 31, 1999 versus 62% in the nine months ended
December 25, 1998.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES. Selling, general and
administrative expenses increased 16.4% to $136.9 million in the nine months
ended December 31, 1999 from $117.6 million in the nine months ended December
25, 1998, primarily due to the Company's continued commitment to brand
advertising, expenses associated with the 21 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 22.8% in the nine months ended December 31, 1999 from
20.2% in the nine months ended December 25, 1998. 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 $1.6 million to $5.3 million in
the nine months ended December 31, 1999 from $3.6 million in the nine months
ended December 25, 1998. This increase was primarily the result of gains on the
disposition of certain properties and additional investment income during the
nine months ended December 31, 1999 somewhat offset by gains on sales of
investments which occurred during the nine months ended December 25, 1998.
LIQUIDITY AND CAPITAL RESOURCES. The Company has a floor plan credit
facility totaling $175.0 million from a financial institution to finance a major
portion of its home inventory at the Company's retail superstores. This facility
is secured by a portion of the Company's home inventory and cash in transit from
financial institutions. The interest rate on the facility is prime (8.50% at
December 31, 1999). The agreement is effective until June 30, 2001. The Company
had $130.3 million and $128.9 million outstanding on this floor plan credit
facility at December 31, 1999 and March 26, 1999, respectively.
The Company's floor plan financing agreement permits the Company to
earn interest on investments made with the financial institution, which can be
withdrawn without any imposed restrictions. The Company is eligible to invest up
to fifty percent of the floor plan balance provided that the net of the floor
plan balance and investment balance does not fall below $60.0 million. The
interest rate on the outstanding borrowings is prime (8.50% at December 31,
1999). The Company had $40.0 million and $36.0 million invested at December 31,
1999 and March 26, 1999, respectively, and has classified these amounts as Cash
and Cash Equivalents in the accompanying Condensed Balance Sheets.
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 (5.82% at December 31, 1999) plus 1.20% or the prime rate (8.50% at
December 31, 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.
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 the date
9
<PAGE> 11
of this filing, the Company had invested $15.1 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.
OTHER MATTERS. In calendar years 1997, 1998, and early 1999, the
manufactured housing industry was elevated by easy credit, which inflated
industry-wide wholesale sales and retail inventories to unsustainable levels.
Beginning in mid 1999, the industry was impacted by a general credit tightening,
resulting in declining wholesale shipments, declining margins and lower retail
sales levels for most industry participants. However, the Company's new home
inventory per retail superstore declined for the fifth consecutive quarter and
net sales and net income have plateaued. The impact that these industry
conditions will have on our future results is not clear at this time.
YEAR 2000 ISSUE. The "Year 2000 Issue" refers to computer programs that
use two digits instead of four to record the applicable year. Computer programs
that have date-sensitive software could have been unable to properly categorize
and process dates occurring after December 31, 1999. This could have resulted in
a system failure or miscalculations in the Company's computer programs causing
significant, unanticipated liabilities, expenses and possible disruption of its
business. Prior to December 31, 1999, the Company implemented a plan to modify
or upgrade certain equipment and software necessary to address the Year 2000
Issue. The total costs incurred to complete the plan were significantly less
than $0.5 million.
Subsequent to January 1, 2000, the Company has not experienced any
disruptions or additional costs as a result of the calendar change. However,
because all Year 2000 issues may not reveal themselves until later in 2000, no
assurances can be given that the Company will not experience any interruptions
due to Year 2000 issues. The Company will continue to monitor the issue
throughout the year. Based on the Company's preparations prior to January 1,
2000 and the absence of any problems subsequent to January 1, 2000, no
significant disruptions are anticipated.
Additionally, there was risk of business disruption if Year 2000
Issue-related failures occurred among the Company's lenders, suppliers,
transporters and others upon which the Company relies, but
10
<PAGE> 12
over which the Company has no control. As of the date of this filing, none of
the Company's critical vendors have been found to be non-compliant.
FORWARD-LOOKING INFORMATION. Certain statements contained in this
quarterly report are forward-looking statements within the safe harbor
provisions of the Securities Litigation Reform Act. 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 be aware that all forward-looking statements are
subject to risks and uncertainties and, as a result of certain factors, actual
results could differ materially from these expressed in or implied by such
statements. These risks include political, economic or other factors such as
inflation rates, employment conditions, interest 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; inclement or catastrophic weather conditions affecting
revenues, inventory levels, and insurance reserves; trends to consolidate the
number of production facilities; and management's ability to anticipate
acceptance of new products in the marketplace and to forecast sales and profits
at certain times in certain markets.
11
<PAGE> 13
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 Data 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: February 7, 2000 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
12
<PAGE> 14
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
- ------- -----------
<S> <C>
27 Financial Data Schedule (EDGAR filing only).
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 1999 AND CONSOLIDATED
STATEMENT OF INCOME FOR THE NINE MONTHS ENDED DECEMBER 31, 1999 LOCATED IN THE
COMPANY'S 10Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS AND THE NOTES THERETO.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-2000
<PERIOD-START> MAR-27-1999
<PERIOD-END> DEC-31-1999
<CASH> 49,114
<SECURITIES> 19,805
<RECEIVABLES> 74,762
<ALLOWANCES> 0
<INVENTORY> 121,952
<CURRENT-ASSETS> 271,731
<PP&E> 86,451
<DEPRECIATION> 0
<TOTAL-ASSETS> 437,003
<CURRENT-LIABILITIES> 218,451
<BONDS> 2,962
0
0
<COMMON> 239
<OTHER-SE> 211,747
<TOTAL-LIABILITY-AND-EQUITY> 437,003
<SALES> 599,870
<TOTAL-REVENUES> 599,870
<CGS> 408,274
<TOTAL-COSTS> 408,274
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 7,518
<INCOME-PRETAX> 52,459
<INCOME-TAX> 20,863
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 31,596
<EPS-BASIC> 1.35
<EPS-DILUTED> 1.35
</TABLE>
