SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 30, 1995
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 0-8493
STEWART & STEVENSON SERVICES, INC.
(Exact name of registrant as specified in its charter)
Texas 74-1051605
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2707 North Loop West, Houston, Texas 77008
(Address of principal executive offices) (Zip Code)
(713) 868-7700
(Registrant's telephone number, including area code)
not applicable
(Former name, former address and former fiscal year,
if changed since last report)
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.
Common Stock, Without Par Value 33,026,815 Shares
(Class) (Outstanding at April 30, 1995)
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
The following information required by Rule 10-01 of Regulation S-X is provided
herein for Stewart & Stevenson Services, Inc. and Subsidiaries (the "Company"):
Consolidated Condensed Statement of Financial Position -- April 30, 1995 and
January 31, 1995.
Consolidated Condensed Statement of Earnings -- Three Months Ended April 30,
1995 and 1994.
Consolidated Condensed Statement of Cash Flows -- Three Months Ended April 30,
1995 and 1994.
Notes to Consolidated Condensed Financial Statements.
<TABLE>
STEWART & STEVENSON SERVICES, INC.
CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL POSITION
(Dollars in thousands)
<CAPTION>
April 30 January 31
1995 1995
___________ __________
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and equivalents $ 4,796 $ 3,987
Accounts and notes receivable, net 205,948 186,814
Recoverable costs and accrued profits
not yet billed 260,916 227,467
Inventories:
Engineered Power Systems 180,247 224,729
Distribution 123,281 121,273
Excess of current cost over LIFO values (50,676) (50,135)
___________ __________
252,852 295,867
Other 128 364
___________ __________
TOTAL CURRENT ASSETS 724,640 714,499
PROPERTY, PLANT AND EQUIPMENT 233,568 230,215
Allowances for depreciation and
amortization (102,292) (98,355)
___________ __________
131,276 131,860
OTHER ASSETS 29,004 29,257
___________ __________
$ 884,920 $875,616
=========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable $ 88,000 $ 42,000
Accounts payable 101,924 164,474
Billings on uncompleted contracts in
excess of incurred costs 20,590 11,284
Current income taxes 50,478 42,240
Other current liabilities 45,112 51,156
___________ __________
TOTAL CURRENT LIABILITIES 306,104 311,154
LONG-TERM DEBT 116,883 116,900
DEFERRED INCOME TAXES 7,830 8,038
ACCRUED POSTRETIREMENT BENEFITS 15,252 15,252
DEFERRED COMPENSATION 5,272 5,269
SHAREHOLDERS' EQUITY
Common Stock, without par value, 50,000,000
shares authorized; 33,038,635 and 33,009,635
shares issued at April 30, 1995 and January
31, 1995, respectively, including 11,820
shares held in treasury 162,930 162,057
Retained earnings 270,682 256,979
___________ __________
433,612 419,036
Less cost of treasury stock (33) (33)
___________ __________
TOTAL SHAREHOLDERS' EQUITY 433,579 419,003
___________ __________
$ 884,920 $875,616
=========== ==========
See accompanying notes to consolidated condensed financial statements.
</TABLE>
<TABLE>
STEWART & STEVENSON SERVICES, INC.
CONSOLIDATED CONDENSED STATEMENT OF EARNINGS
(In thousands, except per share data)
<CAPTION>
Three Months Ended
April 30
__________________________
1995 1994
__________ __________
(Unaudited)
>s> <C> <C>
Sales $289,022 $259,155
Cost of sales 240,480 218,609
__________ __________
Gross profit 48,542 40,546
Selling and administrative expenses 21,661 17,234
Interest expense 2,950 1,039
Other income, net (322) (557)
__________ __________
24,289 17,716
__________ __________
Earnings before income taxes 24,253 22,830
Income taxes 8,128 7,596
__________ __________
Earnings of consolidated companies 16,125 15,234
Equity in net loss of
unconsolidated affiliates (110) (205)
__________ __________
Net earnings $ 16,015 $ 15,029
========== ==========
Weighted average number of shares of
Common Stock outstanding 33,008 32,942
========== ==========
Net earnings per share $ .49 $ .46
========== ==========
Cash dividends per share $ .07 $ .06
========== ==========
See accompanying notes to consolidated condensed financial statements.
</TABLE>
<TABLE>
STEWART & STEVENSON SERVICES, INC.
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
(Dollars in thousands)
<CAPTION>
Three Months Ended
April 30
___________________________
1995 1994
__________ __________
(Unaudited)
<S> <C> <C>
Operating Activities
Net earnings $ 16,015 $ 15,029
Adjustments to reconcile net earnings to net cash
used in operating activities:
Depreciation and amortization 6,066 5,700
Deferred income taxes, net (208) (432)
Change in operating assets and liabilities:
Receivables (19,134) (20,506)
Recoverable costs and accrued profits not
yet billed (33,449) (3,765)
Inventories 43,015 38,906
Accounts payable (62,550) (40,549)
Billings on uncompleted contracts in excess
of incurred costs 9,306 (11,824)
Current income taxes 8,238 6,061
Other current liabilities (6,077) (5,114)
Other--principally long-term assets and liabilities 410 (5,477)
__________ __________
Net Cash Used In Operating Activities (38,368) (21,971)
Investing Activities
Expenditures for property, plant and equipment (5,919) (6,742)
Disposal of property, plant and equipment 519 270
__________ __________
Net Cash Used In Investing Activities (5,400) (6,472)
Financing Activities
Additions to long-term borrowings 33 25,216
Payments on long-term borrowings (17) (25,472)
Borrowings and payments on short-term notes payable 46,000 25,000
Dividends paid (2,312) (1,976)
Exercise of stock options 873 295
__________ __________
Net Cash Provided By Financing Activities 44,577 23,063
__________ __________
Increase (Decrease) in cash and equivalents 809 (5,380)
Cash and equivalents, February 1 3,987 7,788
__________ __________
Cash and equivalents, April 30 $ 4,796 $ 2,408
========== ==========
Supplemental disclosure of cash flow information:
Net cash paid during the period for:
Interest payments $ 2,243 $ 867
Income tax payments $ 408 $ 2,206
See accompanying notes to consolidated condensed financial statements.
</TABLE>
STEWART & STEVENSON SERVICES, INC.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
Note A--Basis of Presentation and Significant Accounting Policies
The accompanying consolidated condensed financial statements have been prepared
in accordance with Rule 10-01 of Regulation S-X for interim financial
statements required to be filed with the Securities and Exchange Commission and
do not include all information and footnotes required by generally accepted
accounting principles for complete financial statements. However, the
information furnished reflects all normal recurring adjustments which are, in
the opinion of management, necessary for a fair statement of the results for
the interim periods. The results of operations for the three months ended
April 30, 1995 are not necessarily indicative of the results that will be
realized for the fiscal year ending January 31, 1996.
The accounting policies followed by the Company in preparing interim
consolidated financial statements are similar to those described in the "Notes
to Consolidated Financial Statements" in the Company's January 31, 1995 Form
10-K.
The Company's fiscal year begins on February 1 of the year indicated and ends
on January 31 of the following year. For example, "Fiscal 1995" commenced on
February 1, 1995 and ends on January 31, 1996.
Net earnings per share of Common Stock are computed by dividing net earnings by
the weighted average number of shares outstanding. Common Stock equivalents
(outstanding options to purchase shares of Common Stock) are excluded from the
computations as they are insignificant. The weighted average number of shares
outstanding for the three months ended April 30, 1995 includes 29,000 shares
issued pursuant to exercise of stock options.
Note B--Commitments and Contingencies
Major contracts for military systems are performed over extended periods of
time and are subject to changes in scope of work and delivery schedules.
Pricing negotiations on changes and settlement of claims often extend over
prolonged periods of time. The Company's ultimate profitability on such
contracts will depend not only upon the accuracy of the Company's cost
projections, but also the eventual outcome of an equitable settlement of
contractual issues with the U.S. Government.
On May 3, 1995, an indictment was returned by a federal Grand Jury in Houston,
Texas, accusing the Company, a former consultant and four employees, including
the Company's President, of one count of major fraud against the United States,
four counts of false statements and one count of conspiracy to commit major
fraud, make false statements and interfere with the administration of a foreign
military sale. All of the counts arise from a 1987 subcontract to supply
diesel generator sets for installation at long-range radar sites in Saudi
Arabia (the "Peace Shield"). The indictment alleges that a former employee of
the general contractor for the Peace Shield program, who later became a
consultant to the Company, conspired with the Company and the other defendants
to award the subcontract to the Company. The indictment also alleges that the
government was defrauded out of approximately $5 million in connection with
cost savings arising from a change order under the Peace Shield contract and
that the Company made false statements relating to cost estimates in connection
with such change order. The Company and each individual have denied all
charges under the indictment and the case is pending in the United States
District Court, Southern District of Texas, Houston Division. The Company is
not able to make a reasonable estimate of the fines or penalties that could be
imposed under the Federal Sentencing Guidelines in the event of a conviction
under the indictment. Such fines and penalties could be substantial and
adversely affect the Company's financial position and results of operations.
A conviction could also adversely affect the Company's ability to participate
in future government contracts. See Management's Discussion and Analysis of
Financial Condition and Results of Operations.
Also in connection with the Peace Shield contract, the Company has been advised
that the former consultant of the Company referred to above filed a suit for
himself and the United States of America alleging that the Company supplied
false information in violation of the False Claims Act (the "Act"), engaged in
common law fraud and misapplied costs. Under the provisions of the Act, the
suit has not been served upon the Company pending an investigation of the case
by the U. S. Department of Justice and a determination as to whether the
Department of Justice will intervene and pursue the matter on behalf of the
United States. The suit is pending in the United States District Court,
Southern District of Texas, Houston Division, and alleges treble damages of $21
million plus unspecified penalties. The Company cannot predict the outcome of
this action or the likelihood that substantial damages will result. However,
the Company intends to vigorously defend this case if it is served upon the
Company.
On May 16, 1995, C. Daniel Chill filed a purported class action suit in the
United States District Court, Southern District of Texas, Houston Division,
against the Company and three of its officers and directors on behalf of
himself and all persons that purchased shares of Common Stock between May 2,
1994 and May 3, 1995. An amended complaint was filed on June 7, 1995. The
suit alleges that the Company violated various sections of and rules under the
Securities Exchange Act of 1934 and common law by disseminating material false
and misleading information, failing to disclose material information and
failing to correct earlier statements that were no longer true, all relating to
the Peace Shield investigation and indictment. The suit claims unspecified
compensatory and punitive damages. The Company cannot predict the outcome of
this action or the likelihood that substantial damages will result. However,
the Company will vigorously defend this case and believes that this case will
be resolved without any material affect on the Company's financial condition or
results of operations.
The Company has not established any reserves or accruals for any potential
liability that may be subsequently found in any of the foregoing cases.
The Company is a defendant in a number of other lawsuits relating to
contractual, product liability, personal injury and warranty matters and
otherwise of the type normally incident to the Company's business. Management
is of the opinion that such lawsuits will not result in any material liability
to the Company.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
The following discussion should be read in conjunction with the attached
condensed consolidated financial statements and notes thereto, and with the
Company's audited financial statements and notes thereto for the fiscal year
ended January 31, 1995.
RESULTS OF OPERATIONS
The following table sets forth for the periods indicated the percentage of
sales represented by certain items reflected in the Company's Consolidated
Condensed Statement of Earnings.
<TABLE>
<CAPTION>
Three Months Ended
April 30
1995 1994
______ ______
<S> <C> <C>
Sales 100.0% 100.0%
Cost of sales 83.2 84.4
______ ______
Gross profit 16.8 15.6
Selling and administrative expenses 7.5 6.6
Interest expense 1.0 .4
Other income, net (.1) (.2)
______ ______
8.4 6.8
______ ______
Earnings before income taxes 8.4 8.8
Income taxes 2.8 2.9
______ ______
Earnings of consolidated companies 5.6 5.9
Equity in net loss of
unconsolidated affiliates (.1) (.1)
______ ______
Net earnings 5.5% 5.8%
====== ======
</TABLE>
Sales for the first quarter of the year ended January 31, 1996 ("Fiscal 1995")
increased 11.5% to $289,022,000 compared to sales of $259,155,000 for the same
period of the year ended January 31, 1995 ("Fiscal 1994").
The Distribution segment was the primary contributor to the Company's sales
growth increasing $17,803,000 (23%) in the first quarter of Fiscal 1995
compared to the same period in Fiscal 1994. This increase is mainly
attributable to the acquisition of the assets and business of Power Application
& Mfg., Co. ("PAMCO"), a Waukesha distributor for the western United States,
during the fourth quarter of Fiscal 1994. The distribution of product lines
acquired from PAMCO contributed sales of $11,153,000 in the first quarter of
Fiscal 1995. Excluding sales relating to the PAMCO acquisition, the
Distribution segment's increase of 8% in the first quarter of Fiscal 1995 over
the same period in Fiscal 1994 reflects the continued growth of the economies
of territories serviced by the Company and improved market penetration of the
products distributed.
The Engineered Power Systems (EPS) segment sales increased $6,962,000 (5%) for
the first quarter of Fiscal 1995 compared to the same period in Fiscal 1994.
The sales growth in the EPS segment is attributed to the gas turbine group.
Gas turbine product support continued its strong sales performance increasing
sales $13,409,000 (71%) in the first quarter of Fiscal 1995 over the same
period in Fiscal 1994. Gas turbine product support consists of the servicing
of customers' equipment and the long-term contracting for the operation and
maintenance of the customers' power plants. The increase in gas turbine
product support sales includes $4,073,000 in sales arising from the acquisition
of certain operations from CPS International, Inc., a provider of operating and
maintenance services for turbine and reciprocating engine driven equipment
acquired in the third quarter of Fiscal 1994. Turbine-driven generator sales
decreased $4,582,000 (4%) as compared to the first quarter of Fiscal 1994. The
diesel group produced mixed results in the first quarter of Fiscal 1995
compared to the same period in Fiscal 1994. Petroleum product sales increases
of $2,757,000 (34%) were offset by decreases in airline product sales and
diesel generator sales of $1,410,000 (18%) and $2,517,000 (76%), respectively.
The Tactical Vehicle Systems (TVS) segment sales increased $4,841,000 (19%) for
the first quarter of Fiscal 1995 compared to the same period in Fiscal 1994.
The increase in TVS sales reflects the increase in truck production under the
"Family of Medium Tactical Vehicles" (FMTV) contract to 320 trucks in the first
quarter of Fiscal 1995 compared to 237 trucks in the same period in Fiscal
1994.
The gross profit margin of 16.8% for the first quarter of Fiscal 1995 improved
as compared to 15.6% of the same period in Fiscal 1994. This increase in gross
margin reflects improved production efficiencies in the gas turbine group and
higher margins on the contracts recognized into revenue during the first
quarter of Fiscal 1995 compared to the same period in Fiscal 1994.
Selling and administrative expenses for the first quarter of Fiscal 1995
increased as a percentage of sales to 7.5% compared to 6.6% for the same period
in Fiscal 1994. The significant portion of this increase is attributable to
the two acquisitions made in the second half of Fiscal 1994 and to the
increased administrative costs related to the establishment of an international
infrastructure, primarily for gas turbine product support, in advance of the
commencement of the associated revenue generation.
Interest expense for the first quarter of Fiscal 1995 increased to $2,950,000,
up from $1,039,000 for the same period in Fiscal 1994. This increase is due to
an increase in both interest rates and outstanding debt.
Net earnings of $16,015,000 ($.49 per share) for the three months ended April
30, 1995 represents a 6.6% increase compared to $15,029,000 ($.46 per share)
for the three months ended April 30, 1994. This growth in earnings is
primarily the result of the increases in sales discussed above.
GOVERNMENT CONTRACTS STATUS
Initial Operation Test and Evaluation under the FMTV Contract was restarted in
April 1995. These tests have been completed and the Company expects the FMTV
program to be certified for full rate production during the last half of Fiscal
1995. Under the terms of the FMTV contract, all vehicles produced before
certification must be retrofitted with any changes required by test results or
specification changes ordered by the government. The Company has scheduled the
retrofit to occur during the fourth quarter of Fiscal 1995.
The Company is currently in low rate initial production. The current fiscal
year's planned production quantity is scheduled for completion by the end of
the third quarter. Full rate production is expected to commence after receipt
of program certification and completion of the retrofit program.
EFFECT OF CERTAIN LITIGATION
On May 3, 1995, the Company and four current employees, including the Company's
President, were indicted by a federal Grand Jury on six counts arising out of a
1987 subcontract to supply diesel generator sets for installation in Saudi
Arabia. See Note B to the Consolidated Condensed Financial Statements. Based
on the indictment, the Company has been suspended from bidding on or receiving
any new contracts or extending any existing contracts with agencies of the
executive branch of the federal government or receiving the benefit of federal
assistance payments. Moreover, a conviction of the Company on the charges set
forth in the indictment could result in an ineligibility from receiving
government contracts for up to three years.
Under the regulations governing suspension, existing contracts are not
affected. In addition, the Department of the Army has determined that there
are compelling reasons that would permit the extension or renewal of the
Company's FMTV contract at any time prior to September 30, 1995. Any vehicles
under contract prior to that date will not be affected by the suspension.
The suspension will affect all future procurement and nonprocurement activity
of the federal government and may affect the procurement activities of certain
state and local governments. Except for sales pursuant to the FMTV contracts,
direct and indirect sales to agencies of the federal government did not make a
material contribution to any of the Company's business segments during Fiscal
1994 and are not expected to make a material contribution in the future.
Nonprocurement activity affected by the suspension includes the receipt of
grants and loans from the federal government and sales that are directly or
indirectly funded by loans from agencies of the federal government. The
Company is not the direct recipient of any grants or loans from agencies of the
federal government but regularly sells equipment and services to recipients of
loans from Export Import Bank, Overseas Private Investment Corporation and
other such agencies. If alternative financial facilities are not available or
are unacceptable to the Company's customers, the suspension could prevent the
Company from bidding for or receiving contracts with those customers and the
loss of such customers could materially affect the results of operations in the
future.
UNFILLED ORDERS
The Company's unfilled orders consist of written purchase orders, letters of
intent, and oral commitments. These unfilled orders are generally subject to
cancellation or modification due to customer relationships or other conditions.
Purchase options are not included in unfilled orders until exercised. Unfilled
orders at April 30, 1995 and at the close of Fiscal 1994 were as follows:
<TABLE>
<CAPTION>
April 30 January 31
1995 1995
__________ __________
(Dollars in millions)
<S> <C> <C>
Engineered Power Systems
Equipment $ 396.3 $ 416.0
Operations and Maintenance 315.5 311.6
__________ __________
711.8 727.6
Distribution 47.5 40.0
Tactical Vehicle Systems 987.0 1,017.8
__________ __________
Total $1,746.3 $1,785.4
========== ==========
</TABLE>
Although no assurance can be given, the Company expects sales of the Engineered
Power Systems segment to continue to be weighted in favor of turbine-driven
equipment because of the large number of unfilled orders for these units, the
number of proposals that are presently outstanding and the current worldwide
need for additional electrical generating capacity.
Unfilled orders of the Tactical Vehicle Systems segment consists principally of
the contracts awarded in October 1991, by the United States Department of the
Army, to manufacture medium tactical vehicles.
CAPITAL EXPENDITURES AND COMMITMENTS
Capital spending for property, plant and equipment of $5,919,000 for the first
quarter of Fiscal 1995 was comparable to $6,742,000 for the same period in
Fiscal 1994. These amounts are consistent with the historical capital
expenditure levels of the Company.
LIQUIDITY AND SOURCES OF CAPITAL
Long-term borrowings at April 30, 1995 decreased slightly from the end of
Fiscal 1994. The Company has $105,000,000 in committed credit facilities which
were fully utilized at April 30, 1995 and at the end of Fiscal 1994. The
Company has additional banking relationships which provide uncommitted
borrowing arrangements. These short-term borrowings increased to $88,000,000
at April 30, 1995 from $42,000,000 at the end of Fiscal 1994. This debt
increase of $46,000,000 is principally a result of the timing of customer
progress payments for contracts-in-process of the EPS segment's gas turbine
group. The Company's working capital needs can fluctuate significantly
depending on the progress payment streams of contracts-in-process. The Company
regularly bids on large commercial contracts which, if awarded to the Company,
could also affect working capital needs. The Company may expand its
Distribution and EPS segments by selective acquisition of additional
distribution territories and product lines. In the event that such activities
create a need for working capital or capital expenditures in excess of existing
committed lines of credit, the Company may seek to convert its uncommitted
borrowing arrangements to committed credit facilities, to borrow under other
long-term financing sources or to issue additional equity securities. The
Company's current credit facilities appear adequate to meet its foreseeable
cash requirements.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
See Note B to the Consolidated Condensed Financial Statements.
Item 5. Other Information.
On June 8, 1995, the Company's President and Chief Executive Officer, Mr. Bob
H. O'Neal, and three managers were placed on administrative leave as a result
of the indictment of the Company and such individuals and the suspension of the
Company. See Note B to the Consolidated Condensed Financial Statements and
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations. Mr. Robert L. Hargrave, the Company's Vice President, Treasurer
and Chief Financial Officer, has been appointed as the Acting Chief Executive
Officer during the term of Mr. O'Neal's administrative leave.
Item 6. Exhibits and Reports on Form 8-K.
(a) The following exhibits are filed as a part of this report pursuant to
Item 601 of Regulation S-K.
27 Financial Data Schedule
(b) The following reports on Form 8-K were filed during the three
months ended April 30, 1995.
Form 8-K Reporting Date - March 7, 1995.
Items Reported - Item 5. Other Events (Rights Agreement).
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.
STEWART & STEVENSON SERVICES, INC.
Date: June 14, 1995 By: /s/ Robert L. Hargrave
_____________ ______________________
Robert L. Hargrave
Group Vice President, Chief Financial
Officer & Treasurer
(Principal Financial Officer)
EXHIBIT INDEX
Exhibit Number and Description
27 Financial data schedule
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM SEC FORM
10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-31-1996
<PERIOD-END> APR-30-1995
<CASH> 4,796
<SECURITIES> 0
<RECEIVABLES> 207,511
<ALLOWANCES> (1,563)
<INVENTORY> 513,768
<CURRENT-ASSETS> 724,640
<PP&E> 233,568
<DEPRECIATION> (102,292)
<TOTAL-ASSETS> 884,920
<CURRENT-LIABILITIES> 306,104
<BONDS> 116,883
<COMMON> 162,930
0
0
<OTHER-SE> 270,649
<TOTAL-LIABILITY-AND-EQUITY> 884,920
<SALES> 289,022
<TOTAL-REVENUES> 289,022
<CGS> 240,480
<TOTAL-COSTS> 240,480
<OTHER-EXPENSES> 24,289
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,950
<INCOME-PRETAX> 24,253
<INCOME-TAX> 8,128
<INCOME-CONTINUING> 16,015
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 16,015
<EPS-PRIMARY> .49
<EPS-DILUTED> .49
</TABLE>
