<PAGE> 1
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------------------------
FORM 10-Q
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED MARCH 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:
0-25834
---------------------------
EASCO, INC.
(Exact name of Registrant as specified in its charter)
DELAWARE 94-3157362
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) identification no.)
706 SOUTH STATE STREET, GIRARD, OHIO
(Address of principal executive office)
44420
(Zip Code)
(330) 545-4311
(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
--- ---
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
CLASS OUTSTANDING AT APRIL 29, 1999
----- -----------------------------
Common Stock, $0.01 Par Value 9,452,541
<PAGE> 2
INDEX
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
PART I. FINANCIAL INFORMATION
Item 1 - Financial Statements
Condensed Consolidated Balance Sheets as of March 31, 1999 and December 31, 1998 .................3
Condensed Consolidated Statements of Operations for the three months ended
March 31, 1999 and 1998........................................................................4
Condensed Consolidated Statements of Cash Flows for the three months ended
March 31, 1999 and 1998........................................................................5
Notes to Condensed Consolidated Financial Statements............................................6-7
Item 2 - Management's Discussion and Analysis of Financial Condition and Results of
Operations.....................................................................................8-12
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K............................................................13
Signature...........................................................................................14
</TABLE>
2
<PAGE> 3
PART I. FINANCIAL INFORMATION
EASCO, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
1999 1998
----------------- -----------------
(Unaudited)
<S> <C> <C>
ASSETS
Current assets:
Cash and equivalents $ 10,548 $ 14,057
Receivables, net 46,477 37,261
Inventories 24,768 25,248
Other current assets 4,162 4,353
----------------- -----------------
Total current assets 85,955 80,919
----------------- -----------------
Property, plant and equipment, net 80,710 81,576
Goodwill, net 51,344 51,722
Other assets 7,298 6,383
================= =================
Total assets $ 225,307 $ 220,600
================= =================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 23,700 $ 21,136
Accrued insurance obligations 2,107 1,954
Accrued payroll 5,687 4,106
Other current liabilities 9,440 9,742
----------------- -----------------
Total current liabilities 40,934 36,938
Long-term debt 91,131 91,158
Deferred income taxes 16,665 16,665
Accrued pension benefits 1,440 1,785
Accrued postretirement benefits 2,903 2,906
Other non-current liabilities 6,413 7,000
----------------- -----------------
Total liabilities 159,486 156,452
----------------- -----------------
Commitments and contingencies - -
Stockholders' equity:
Preferred Stock, $.01 par value, authorized
1,000,000 shares; none issued or outstanding - -
Common Stock, $.01 par value, authorized
40,000,000 shares; 12,480,561 issued and
at March 31, 1999 and December 31, 1998,
respectively 124 124
Paid-in capital 82,457 82,457
Retained earnings 15,492 13,819
Less: treasury stock, 3,028,020 shares (32,252) (32,252)
----------------- -----------------
Total stockholders' equity 65,821 64,148
----------------- -----------------
Total liabilities and stockholders' equity $ 225,307 $ 220,600
================= =================
</TABLE>
The accompanying notes are an integral part of these statements.
3
<PAGE> 4
EASCO, INC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
-------------------------------------
MARCH 31, MARCH 31,
1999 1998
------------------ -----------------
<S> <C> <C>
Net sales:
Product $ 67,899 $ 65,451
Tolling fees 13,674 15,403
------------ ------------
81,573 80,854
Cost of products sold 70,492 71,205
------------ ------------
Gross profit 11,081 9,649
Selling, general and administrative 5,316 4,124
Amortization of goodwill and other 414 414
Management fees 225 225
Unusual item - (3,041)
------------ ------------
Operating profit 5,126 7,927
Interest expense (net) 2,179 2,052
------------ ------------
Income before income tax 2,947 5,875
Income tax provision 1,179 2,467
------------ ------------
Net income $ 1,768 $ 3,408
============ ============
Basic earnings per share $ 0.19 $ 0.33
============ ============
Diluted earnings per share $ 0.18 $ 0.32
============ ============
Weighted average number of
common shares 9,452,541 10,444,159
============ ============
Weighted average number of
common shares - assuming dilution 9,622,873 10,795,919
============ ============
</TABLE>
The accompanying notes are an integral part of these statements.
4
<PAGE> 5
EASCO, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
-----------------------------
MARCH 31, MARCH 31,
1999 1998
------------ ------------
<S> <C> <C>
Cash flows from operations:
Net income $ 1,768 $ 3,408
Adjustments to reconcile net income to net cash flows
from operating activities:
Depreciation 2,176 1,721
Amortization of goodwill and other intangibles 414 414
Amortization of deferred debt issue costs 150 144
Stock compensation expense - 52
Gain on sale of assets - (3,041)
Changes in operating assets and liabilities:
Increase in receivables (9,216) (3,152)
Decrease in inventories 480 5,942
Decrease in other current assets 191 226
Increase in other assets (1,101) (98)
Increase (decrease) in other accounts payable,
accruals, and other current liabilities 3,995 (13,235)
Increase in deferred taxes (net) - 76
Decrease in other noncurrent liabilities (934) (1,358)
-------- --------
Net cash used for operating activities (2,077) (8,901)
-------- --------
Cash flows from investing activities:
Proceeds from sale of assets - 13,225
Property additions (net) (1,310) (5,070)
-------- --------
Net cash (used for) provided by investing activities (1,310) 8,155
-------- --------
Cash flows from financing activities:
Issuance of Common Stock - 324
Decrease in notes payable (27) -
Cash dividends paid (95) (104)
-------- --------
Net cash (used for) provided by financing activities (122) 220
-------- --------
Net decrease for the period (3,509) (526)
Cash and cash equivalents, beginning of period 14,057 8,470
======== ========
Cash and cash equivalents, end of period $ 10,548 $ 7,944
======== ========
</TABLE>
The accompanying notes are an integral part of these statements.
5
<PAGE> 6
EASCO, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 1999 AND 1998
(UNAUDITED)
1. Basis of Presentation
The accompanying unaudited condensed consolidated financial statements
include the accounts of Easco, Inc. (the "Company") and its wholly-owned
subsidiary Easco Corporation ("Easco") and Easco's wholly-owned subsidiary,
Dolton Aluminum Company, Inc. ("Dolton"). These condensed financial statements
have been prepared in accordance with generally accepted accounting principles
for interim financial statements and accordingly do not include all of the
information and disclosures generally required for complete financial
statements. In the opinion of management, all adjustments considered necessary
for a fair presentation have been made.
2. Inventories
At March 31, 1999 and December 31, 1998, inventories consist of:
<TABLE>
<CAPTION>
March 31, December 31,
1999 1998
---------- ------------
<S> <C> <C>
Raw materials $ 3,301 $ 4,886
Work-in-process 9,342 9,113
Finished goods 10,224 11,249
------- -------
Total at FIFO cost 22,867 25,248
Add: excess of LIFO cost over
FIFO values 1,901 -
------- -------
Total $24,768 $25,248
======= =======
</TABLE>
Inventories are valued at the lower of cost or market, with cost
determined using the last-in, first-out (LIFO) method.
3. Unusual Item
In the first quarter of 1998, the Company realized a pre-tax,
non-recurring gain of $3.0 million related to the sale of its vinyl extrusion
operations. The transaction was recorded as an asset sale and involved the
transfer of all assets and liabilities associated with the vinyl extrusion
operations.
4. Contingencies
Litigation
Lawsuits and claims are filed from time to time against the Company in
the ordinary course of business. Management of the Company, after reviewing
developments to date with legal counsel, is of the opinion that the outcome of
such matters will not have a material adverse effect on the Company's financial
condition, results of operations or liquidity.
6
<PAGE> 7
Environmental Matters
The Company is subject to a wide variety of environmental laws which
continue to be adopted and amended. While the ultimate extent of the Company's
liability for pending or potential fines, penalties, remedial costs, claims and
litigation relating to environmental laws and health and safety matters and
future capital expenditures that may be associated with environmental laws
cannot be determined at this time, management continually assesses the Company's
environmental contingencies. The Company has recorded a reserve of $3.4 million
at March 31, 1999.
7
<PAGE> 8
ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
OVERVIEW
Easco, Inc. is the largest independent extruder of soft alloy aluminum products
in the United States and is a leading producer of painted extrusions. The
Company operates 21 aluminum extrusion presses and three casting facilities. The
Company's products include standard and custom profiles, conduit and drawn
tubing.
Demand was strong in most of the Company's markets during the first quarter of
1999. Order rates were healthy, particularly in the transportation sector where
truck trailer manufacturers and step van body manufacturers continue to report
record build rates. Based on customer feedback, the Company anticipates that
these markets will remain strong through the balance of 1999. The recreational
vehicle market also continues to show strength with customers anticipating a
modest increase over 1998 shipment levels.
The market strength was offset somewhat in the first quarter of 1999 by narrower
differentials between the cost of scrap aluminum (the Company's main raw
material) and primary aluminum. This resulted in narrower margins, and can be
primarily attributed to winter weather conditions and reduced automobile body
recycling at scrap yards which combined to lower the available supply of
aluminum scrap, increasing metal costs in the short-term. The Company believes
these factors will begin to reverse during the second quarter and spreads will
widen to more "normal" levels.
The Company's painting operations are realizing improved operating efficiencies
as a result of recent capital projects. In addition, the Dolton, Illinois
operations continue to improve, and this facility is now contributing positively
to the Company's profitability on a consistent basis. These improvements have
been partially offset by increased unit costs in the extrusion manufacturing
operations as expenditures for process improvements at certain facilities,
particularly the Burlington, North Carolina operation, are not yet being fully
recouped through increased operating efficiencies. The Company expects this
condition to begin to reverse later in 1999.
8
<PAGE> 9
BASIS OF PRESENTATION:
The following table sets forth, for the periods shown, certain of the
Company's unaudited performance statistics.
<TABLE>
<CAPTION>
Three Months Ended
MARCH 31, MARCH 31,
1999 1998
----------- -----------
(AMOUNTS IN MILLIONS, EXCEPT PER POUND DATA)
<S> <C> <C>
Net sales $ 81.6 $ 80.9
Gross profit 11.1 9.6
Unusual item - 3.0
Operating profit 5.1 7.9
Net income $ 1.8 $ 3.4
Pounds shipped:
Company-owned material 59.9 52.7
Customer Conversion Program 22.0 27.2
------- -------
Total pounds shipped 81.9 79.9
======= =======
Other performance measures:
Operating profit $ 5.1 $ 7.9
Non-cash and nonrecurring charges (income):
Depreciation and amortization 2.6 2.1
Unusual item - (3.0)
------- -------
Adjusted EBITDA $ 7.7 $ 7.0
======= =======
Gross profit per pound $ 0.136 $ 0.120
Adjusted EBITDA per pound $ 0.094 $ 0.088
</TABLE>
Aluminum Price Fluctuation Management Programs. Under its Customer Conversion
Program, the Company's customers supply aluminum directly to the Company, and
the Company converts this aluminum into finished product for an agreed tolling
charge. Accordingly, neither net sales nor cost of products sold reflect the raw
material cost for these sales, and, depending upon the degree to which aluminum
is customer-supplied, net sales and cost of products sold will fluctuate without
regard to underlying business activity. Combined with the Company's turnover of
its aluminum inventory and the Company's metal hedging strategies, this program
serves to minimize the impact of aluminum price changes on the Company.
RESULTS OF OPERATIONS FOR THE THREE MONTH PERIODS
ENDED MARCH 31, 1999 AND 1998
Net sales for the first quarter of 1999 increased 0.9% to $81.6 million
from $80.9 million in the first quarter of 1998. This increase was primarily due
to a 3.5% increase in aluminum pounds shipped and a shift in the mix of
shipments from toll conversion to Company supplied metal products. These factors
were offset, in part, by lower aluminum prices during the 1999 period.
For the quarter ended March 31, 1999, gross profit was $11.1 million,
an increase of 15.6% over $9.6 million for the same period in 1998. This
increase was largely a result of improved production efficiencies at the
Company's painting operations and improved results at its Dolton, Illinois
facility. These improvements were offset somewhat by higher unit costs in the
extrusion operations where spending on process improvements is not yet being
fully recouped through improved operations.
9
<PAGE> 10
Selling, general and administrative expenses increased 29.2% from $4.1
million in the first quarter of 1998 to $5.3 million in the same period of 1999.
This increase was primarily due to increased payroll costs and to increased
legal expenses.
During the first quarter of 1998, the Company recorded a pre-tax
unusual gain of $3.0 million related to the sale of the Company's vinyl
extrusion operations. The gain is net of any expenses related to the negotiation
and completion of the sales agreement.
Operating profit for the quarter ended March 31, 1999 decreased to $5.1
million from $7.9 million for the same period in 1998. Excluding the unusual
item, operating income for the three months ended March 31, 1998 was $4.9
million. The increase, excluding the unusual item, was primarily a result of the
factors discussed above.
Net interest expense for the first quarter of 1999 was slightly higher
than the same period in 1998. The increase was due to interest on industrial
development revenue bonds that were issued in November 1998 for the Ahoskie,
North Carolina expansion project and lower investable cash balances due to the
Company's stock repurchase in August, 1998.
For the quarter ended March 31, 1999, net income was $1.8 million
compared to a net income of $3.4 million for the quarter ended March 31, 1998.
Excluding the unusual item, net income for the 1998 period would have been $1.6
million. Income taxes were applied at the Company's estimated effective annual
rate. This rate differs from the federal statutory rate primarily due to
non-deductible goodwill and state taxes.
FINANCIAL CONDITION; LIQUIDITY AND CAPITAL RESOURCES
The Company's principal sources of funds are cash on hand, cash flow
from operations and borrowings under a $40 million revolving credit facility
with a syndicate of banks. There were no borrowings and $9.5 million of letters
of credit outstanding under the revolving credit facility as of March 31, 1999.
Availability under the revolving credit facility was $30.5 million as of March
31, 1999.
Working capital at March 31, 1999 was $45.0 million compared to $44.0
million at December 31, 1998. This increase was principally due to higher
accounts receivable from increased sales offset in part by higher accounts
payable.
Capital expenditures totaled $1.3 million for the first three months of
1999 compared to $5.1 million in the same period of 1998. The Company intends to
incur capital spending of approximately $11.0 million for the remainder of 1999.
The Company is making these expenditures to purchase, modernize or upgrade
extrusion production equipment and to maintain facilities. The Company intends
to fund the costs of these capital projects out of the Company's operating cash
flow and borrowings, if necessary, under the revolving line of credit.
At March 31, 1999, long-term debt primarily consisted of $85.0 million
of 10% Senior Notes, due 2001 and a $6.0 million note with Hertford County,
North Carolina for industrial revenue development bonds due 2015, issued by
Hertford County, North Carolina for the Company's Ahoskie, North Carolina billet
casting expansion. At December 31, 1998, long-term debt consisted solely of the
Senior Notes. The Company has no scheduled principal amortization requirements
with respect to any of its debt until 2000.
The Company believes that its cash flow from operations and available
sources of borrowings will be sufficient to finance its anticipated cash
requirements at least until the expiration date of the Company's revolving
credit facility in 2000, at which time the Company would expect to renew or
replace that facility.
RISK MANAGEMENT
In the normal course of business, the Company enters into forward fixed
price arrangements with certain of its customers. The aluminum cost component of
the forward sales contracts is typically fixed for the duration of the
contracts. In order to hedge its exposure to aluminum price volatility under
these forward sales contracts, the Company may enter into aluminum futures
contracts based on the scheduled deliveries of product. The Company is exposed
to losses in the event of non-performance by the counterparties to these
agreements. However, the Company only uses recognized brokerage firms for the
purchase of aluminum futures contracts and does not anticipate non-performance
by these counterparties. Gains and losses on aluminum futures contracts are
deferred and recognized as product is shipped in satisfaction of the hedged
sales contracts.
10
<PAGE> 11
At March 31, 1999, the Company was a party to aluminum futures
contracts with a nominal value of $18.3 million. These aluminum futures
contracts cover approximately 30.6 million pounds of aluminum at prices expected
to be settled financially in cash as they reach their respective settlement
dates. As of March 31, 1999, the nominal value of the aluminum futures contracts
was approximately $860,000 greater than market value.
YEAR 2000
The Company has been evaluating and adjusting all known date-sensitive
systems and equipment for Year 2000 compliance. The majority of the Company's
business processing applications operate on mainframe computer systems. The
assessment phase on these systems was completed during the first quarter of
1998. Over 95% of the required coding conversions on the business processing
applications have occurred to date. The Company anticipates completing all known
remaining coding conversions during the second quarter of 1999. All of the
compliance work was performed or is expected to be performed by Company
employees.
The testing phase of the Company's Year 2000 efforts is scheduled to be
completed by the third quarter of 1999. Testing will continue for all existing
systems and ongoing new releases and enhancements to ensure readiness.
The total estimated cost of converting the Company's systems is less
than $500,000, which is being expensed as incurred. Substantially all of the
cost is related to reprogramming or replacement of software. As of March 31,
1999, the Company estimates approximately one-half of this amount has been
incurred.
The Company has recently upgraded or replaced substantially all of its
hardware as part of an operational decision to improve its information system.
These hardware upgrades or replacements have been tested for Year 2000
compliance. All of the Year 2000 costs are being funded through operating cash
flow and are an immaterial part of the Company's information technology budget.
The Company's information systems group has deferred some minor information
technology projects to address the Year 2000 issue.
In addition to internal Year 2000 compliance activities, the Company is
communicating with others that interface with the Company's systems or that
support the uninterrupted operation of the systems, to determine the extent to
which those companies are addressing their Year 2000 compliance. Where possible,
the Company is testing such interfaces and intends to continue testing
throughout 1999. There can be no assurance that there will not be an adverse
effect on the Company if third parties, such as utility companies or scrap metal
suppliers, do not convert their systems in a timely manner. However, management
believes that ongoing communication with and assessment of these third parties
will minimize these risks.
Although the Company does not anticipate any material business
disruption will occur as a result of Year 2000 issues, potential risks include,
but are not limited to, loss of communications links with plant locations, loss
of electric or gas power and inability to perform normal business activities
such as customer invoicing and issuance of vendor purchase orders.
To date, the Company has not established a contingency plan for
possible Year 2000 issues. Where needed, the Company will develop contingency
plans based on actual testing and assessment of the inherent risks.
CAUTIONARY STATEMENT
The statements in the second, third and fourth paragraphs of the
section titled "Overview" concerning anticipated events are forward looking
statements as such term is used under the Private Securities Litigation Reform
Act of 1995. The Company's performance may be affected by many uncertainties
that exist in the Company's operations and business environment that may cause
actual performance to differ materially from performance suggested by any
forward looking statements.
Demand for the Company's products is cyclical in nature and subject to
changes in general market conditions that affect demand. The Company's customers
operate primarily in industries (e.g., building and construction and
transportation) that are affected by changes in economic conditions, which in
turn can affect orders for extrusions. The Company and the extrusion industry
generally operate without significant order backlogs. As a result, economic
slowdowns and recessions could adversely affect the extrusion industry and the
Company. The Company's performance may also be affected by other risks and
uncertainties that may cause actual performance to differ materially from any
forward-looking statements, including but not limited to the following: the
Company's level of utilization of its extrusion capacity and the impact of
capacity utilization on costs; the Company's ability to increase its market
share, which may be necessary to maximize capacity utilization, and the costs
associated with any such effects; the highly competitive nature of the extrusion
industry and the relatively greater capitalization and lower levels of
indebtedness of certain competitors, particularly integrated aluminum producers;
developments with respect to contingencies such as environmental matters and
litigation; the impact on variable costs of changes in labor market conditions
and energy and raw materials costs
11
<PAGE> 12
(primarily aluminum); seasonal variations in the extrusion business which is
generally stronger in the second and third quarters and weaker in the first and
fourth quarters; whether the Company's management team hired in late 1996 will
be able to improve operations and profitability as planned; whether and to what
extent the Company's capital expenditures can achieve reductions in variable
costs; whether the Company's computer systems will be successfully updated to
address the "Year 2000" issue, and at what cost, and whether and to what extent
the Company's customer and supplier relationships are adversely affected by this
issue; and the Company's ability to integrate and operate acquired facilities on
a profitable basis. For further information see the section titled "Cautionary
Statement" in Part I, Item 1 of the Company's annual report on Form 10-K.
12
<PAGE> 13
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) List of Exhibits
11.1 Computation of earnings per share for the three months ended March 31,
1999 and 1998.
(b) Reports on Form 8-K
None
13
<PAGE> 14
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
EASCO, INC.
April 29, 1999 /s/ Terry D. Smith
--------------------------------
Terry D. Smith
Executive Vice President and Chief Financial Officer
Secretary and Treasurer
(Principal Accounting Officer duly authorized
to sign on behalf of the Registrant)
14
<PAGE> 1
EXHIBIT 11.1
EASCO, INC.
CALCULATION OF EARNINGS PER COMMON SHARE
(NUMBERS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
--------------------------
MARCH 31, MARCH 31,
1999 1998
------------ ----------
(UNAUDITED)
<S> <C> <C>
Weighted average shares of Common Stock
issued 12,480 12,449
Less: Treasury Stock outstanding 3,028 2,005
------- -------
Weighted average shares of Common Stock
issued and outstanding 9,452 10,444
Add: Weighted average shares of Common
Stock equivalents (stock options) 171 352
------- -------
Weighted average shares of Common
Stock and Common Stock equivalents
outstanding 9,623 10,796
======= =======
Net income $ 1,768 $ 3,408
======= =======
Basic earnings per share $ 0.19 $ 0.33
======= =======
Diluted earnings per share $ 0.18 $ 0.32
======= =======
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 10,548
<SECURITIES> 0
<RECEIVABLES> 48,568
<ALLOWANCES> 2,091
<INVENTORY> 24,768
<CURRENT-ASSETS> 85,955
<PP&E> 118,671
<DEPRECIATION> 37,961
<TOTAL-ASSETS> 225,307
<CURRENT-LIABILITIES> 40,934
<BONDS> 91,131
124
0
<COMMON> 0
<OTHER-SE> 65,697
<TOTAL-LIABILITY-AND-EQUITY> 225,307
<SALES> 67,899
<TOTAL-REVENUES> 81,573
<CGS> 70,492
<TOTAL-COSTS> 75,808
<OTHER-EXPENSES> 639
<LOSS-PROVISION> 60
<INTEREST-EXPENSE> 2,179
<INCOME-PRETAX> 2,947
<INCOME-TAX> 1,179
<INCOME-CONTINUING> 1,768
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,768
<EPS-PRIMARY> 0.19
<EPS-DILUTED> 0.18
</TABLE>
