UNITED STATES
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 June 30, 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 2-44764
BALTEK CORPORATION
-----------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 13-2646117
-------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
10 Fairway Court, P.O. Box 195, Northvale, New Jersey 07647
-------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
201-767-1400
------------
Registrant's telephone number, including area code
(Former name, former address and formal 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 [ ]
Common shares of stock outstanding as of August 7, 1999: 2,523,261 shares
<PAGE>
BALTEK CORPORATION AND SUBSIDIARIES
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
PART I. FINANCIAL INFORMATION:
ITEM 1. FINANCIAL STATEMENTS:
Consolidated Balance Sheets as of June 30, 1999 and December 31, 1998
Consolidated Statements of Income and Retained Earnings for the Three
and Six Months Ended June 30, 1999 and 1998
Consolidated Statements of Cash Flows for the Six Months
Ended June 30, 1999 and 1998
Notes to Consolidated Financial Statements
ITEM 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
PART II. OTHER INFORMATION:
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
<PAGE>
<TABLE>
<CAPTION>
BALTEK CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands, except per share data)
June 30, December 31,
ASSETS 1999 1998
------- -------
(Unaudited)
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents .......................................... $ 1,812 $ 1,056
Accounts receivable, net ........................................... 9,544 6,942
Inventories ........................................................ 19,590 14,667
Prepaid expenses ................................................... 407 425
Other .............................................................. 958 1,148
------- -------
Total current assets ...................................... 32,311 24,238
PROPERTY, PLANT AND EQUIPMENT, Net ................................... 13,354 13,114
TIMBER AND TIMBERLANDS ............................................... 8,181 8,186
OTHER ASSETS ......................................................... 535 539
------- -------
Total assets .............................................. $54,381 $46,077
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable ...................................................... $10,191 $ 4,681
Accounts payable ................................................... 5,343 2,438
Income tax payable ................................................. 147 216
Accrued salaries, wages and bonuses payable ........................ 634 1,440
Accrued expenses and other liabilities ............................. 1,062 876
Current portion of long-term debt .................................. 349 449
Current portion of obligation under capital lease .................. 400 381
------- -------
Total current liabilities ................................. 18,126 10,481
OBLIGATION UNDER CAPITAL LEASE ....................................... 753 961
LONG-TERM DEBT ....................................................... 240 620
UNION EMPLOYEE TERMINATION BENEFITS .................................. 172 235
------- -------
Total liabilities ......................................... 19,291 12,297
------- -------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
BALTEK CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands, except per share data)
June 30, December 31,
1999 1998
(Unaudited)
<S> <C> <C>
STOCKHOLDERS' EQUITY:
Preferred stock, $1.00 par; 5,000,000 shares authorized and unissued -- --
Common stock, $1.00 par; 10,000,000 shares authorized,
2,523,261 shares issued and outstanding .......................... 2,523 2,523
Additional paid-in capital ......................................... 2,157 2,157
Retained earnings .................................................. 30,410 29,100
------- -------
Total stockholders' equity ................................ 35,090 33,780
------- -------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ........................... $54,381 $46,077
======= =======
</TABLE>
See notes to consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
BALTEK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS (UNAUDITED)
(Dollars in Thousands, except per share data)
Three Months Six Months
Ended June 30, Ended June 30,
1999 1998 1999 1998
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
NET SALES ..................................... $ 22,927 $ 17,902 $ 41,026 $ 33,716
COST OF PRODUCTS SOLD ......................... 18,055 13,332 31,451 25,546
SELLING , GENERAL AND
ADMINISTRATIVE EXPENSES ..................... 3,438 3,167 7,062 5,890
----------- ----------- ----------- -----------
Operating income .................. 1,434 1,403 2,513 2,280
----------- ----------- ----------- -----------
OTHER INCOME (EXPENSE):
Interest expense ........................... (371) (393) (633) (692)
Foreign exchange (loss) gain ............... (23) 50 (11) 177
Other, net ................................. 2 1 3 2
----------- ----------- ----------- -----------
Total ............................. (392) (342) (641) (513)
----------- ----------- ----------- -----------
INCOME BEFORE INCOME TAXES .................... 1,042 1,061 1,872 1,767
INCOME TAX PROVISION .......................... 313 319 562 531
----------- ----------- ----------- -----------
NET INCOME .................................... 729 742 1,310 1,236
RETAINED EARNINGS,
BEGINNING OF PERIOD ......................... 29,681 26,335 29,100 25,841
----------- ----------- ----------- -----------
RETAINED EARNINGS,
END OF PERIOD ............................... $ 30,410 $ 27,077 $ 30,410 $ 27,077
=========== =========== =========== ===========
AVERAGE SHARES OUTSTANDING .................... 2,523,261 2,523,261 2,523,261 2,523,261
=========== =========== =========== ===========
EARNINGS PER COMMON SHARE ..................... $ 0.29 $ 0.29 $ 0.52 $ 0.49
=========== =========== =========== ===========
</TABLE>
See notes to consolidated financial statements
<PAGE>
<TABLE>
<CAPTION>
BALTEK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in Thousands)
Six Months
Ended June 30,
1999 1998
------- -------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ......................................... $ 1,310 $ 1,236
Adjustments to reconcile net income to net cash
(used in) provided by operating activities:
Depreciation and amortization .................... 1,618 1,119
Foreign exchange loss (gain) ..................... 11 (177)
Deferred taxes ................................... 25 16
Changes in assets and liabilities, net of the
effect of foreign currency translation:
Accounts receivable .......................... (2,605) (1,406)
Inventories .................................. (4,501) 1,916
Prepaid expenses and other current assets .... 212 (80)
Other assets ................................. (22) 8
Accounts payable and accrued expenses ........ 2,415 29
Income taxes payable.......................... (74) 314
Other ........................................ (78) 5
------- -------
Net cash (used in) provided by operating
activities .............................. (1,689) 2,980
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Net acquisitions of property, plant and equipment .. (1,366) (1,672)
Increase in timber and timberlands ................. (416) (784)
Acquisition of assets of seafood import business.... (491) --
------- -------
Net cash (used in) investing activities .. (2,273) (2,456)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in notes payable, net ..................... 5,510 310
Borrowings of long-term debt ....................... -- 580
Payments of long-term debt ......................... (581) (1,174)
Principal payments under capital lease ............. (191) (168)
------- -------
Net cash provided by (used in) financing
activities .............................. 4,738 (452)
------- -------
EFFECT OF EXCHANGE RATE CHANGES ON CASH .............. (20) 232
------- -------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
BALTEK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in Thousands)
(continued)
Six Months
Ended June 30,
1999 1998
------- -------
<S> <C> <C>
NET INCREASE IN
CASH AND CASH EQUIVALENTS .......................... 756 304
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD ................................ 1,056 1,177
------- -------
CASH AND CASH EQUIVALENTS,
END OF PERIOD ...................................... $ 1,812 $ 1,481
======= =======
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest ......................................... $ 529 $ 506
======= =======
Income taxes ..................................... $ 535 $ 176
======= =======
</TABLE>
See notes to consolidated financial statements.
<PAGE>
BALTEK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
1. BASIS OF PRESENTATION
The information included in the accompanying interim financial statements
is unaudited. In the opinion of management, all adjustments, consisting of
normal recurring accruals necessary for a fair presentation of the results
of operations, financial position and cash flows for the interim periods
presented have been reflected herein. The results of operations for the
interim periods are not necessarily indicative of the results to be
expected for the entire year. The statements should be read in conjunction
with the accounting policies and notes to consolidated financial
statements included in the Company's 1998 Annual Report on Form 10-K.
2. INVENTORIES
Inventories are summarized as follows (amounts in thousands):
<TABLE>
<CAPTION>
June 30, December 31,
1999 1998
------- -------
<S> <C> <C>
Raw materials .......... $ 8,472 $ 6,407
Work-in-process ........ 3,870 4,476
Finished goods ......... 7,248 3,784
------- -------
$19,590 $14,667
======= =======
</TABLE>
3. NOTES PAYABLE
The Company's primary domestic credit facility, which by its original
terms expired on May 31, 1999, has been extended until September 30, 1999.
The Company has also obtained another secured domestic credit facility for
$3 million, which expires on August 31, 1999. The Company is currently
discussing the terms of a new facility with its domestic bank.
4. ACQUISITION
In April 1999, the Company signed an agreement to purchase certain assets
and inventory totaling approximately $500,000 from the seafood importing
subsidiary of Nissho Iwai Corporation. The acquisition increases the
Company's presence in the seafood industry and allows the Company to sell
not only shrimp but many other types of seafood, including lobster, crab
and salmon. Although this acquisition was not formalized until April, the
Company, by mutual informal agreement with Nissho Iwai, effectively
commenced importing operations during the first quarter.
<PAGE>
5. SEGMENT INFORMATION
The Company and its subsidiaries operate in two segments, as a
manufacturer and supplier of core materials to various composite
industries, and in the seafood business as a shrimp producer and seafood
importer. The segments are managed and reported separately because of the
difference in products they produce and markets they serve. The Company
evaluates performance based on operating income, i.e. results of
operations before interest, income taxes and foreign exchange gains and
losses. There are no intersegment sales.
Because of the Company's expanded operations as a result of its entry into
the seafood import business, the segment formerly referred to as "Shrimp"
will hereinafter be described as "Seafood", which more accurately reflects
the Company's diverse operations as a shrimp producer and seafood
importer.
Information about the Company's operations by segment for the three and
six months ended June 30, 1999 and 1998 is as follows (in thousands):
<TABLE>
<CAPTION>
Three Months Six Months
Ended June 30, Ended June 30,
1999 1998 1999 1998
------- ------- ------- -------
<S> <C> <C> <C> <C>
Net Sales to unaffiliated customers
Core materials segment ............ $15,279 $14,105 $28,653 $26,493
Seafood segment ................... 7,648 3,797 12,373 7,223
------- ------- ------- -------
Total net sales ................... $22,927 $17,902 $41,026 $33,716
======= ======= ======= =======
Operating Income
Core materials segment ............ $ 849 $ 973 $ 1,362 $ 1,441
Seafood segment ................... 585 429 1,151 839
------- ------- ------- -------
Total operating income ............ $ 1,434 $ 1,402 $ 2,513 $ 2,280
======= ======= ======= =======
</TABLE>
6. NEW ACCOUNTING STANDARDS
Derivatives and Hedging Activities
In June 1998, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 133, "Accounting
for Derivative and Hedging Activities." This statement requires that all
derivatives be measured at fair value and recognized as either assets or
liabilities on our balance sheet. Changes in the fair values of derivative
instruments will be recognized in either earnings or comprehensive income,
depending on the designated use and effectiveness of the instruments. The
FASB amended this pronouncement in June 1999 to defer the effective date
of SFAS No. 133 for one year.
Under the amended pronouncement, we must adopt SFAS No. 133 no later than
January 1, 2001. The adoption of SFAS No. 133 is not expected to have a
material effect on the Company's results of operations or financial
condition.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
Liquidity and Capital Resources
The primary sources of liquidity historically have been and are
expected to continue to be cash flow generated from operations and available
borrowings under short-term lines of credit. The Company has increased available
borrowings under domestic lines of credit to $10 million to provide for its
anticipated working capital requirements (the Company continues to have lines of
credit in Ecuador and Europe totaling approximately $6 million). The Company's
recently expanded operations as a seafood importer are expected to require a
significant amount of working capital, particularly to finance inventory and
accounts receivable. The Company may, accordingly, seek additional increases in
its working capital facility in the near term to finance its growth. Because of
expected growth in its core materials segment and shrimp producing activities,
the Company may seek long-term financing for significant capital expenditures.
The Company's financial position remains strong. At June 30, 1999, the
Company had working capital of $14.2 million compared to $13.8 million at
December 31, 1998. Inventories and accounts receivable increased during the
quarter as a result of the Company's growth and expansion into seafood
importing. Notes payable also increased during the quarter; the increased
borrowings were used to finance higher levels of working capital.
Results of Operations for the Three and Six Months
Ended June 30, 1999 and 1998
Total sales increased 28% and 22%, respectively, during the three and
six-month periods ended June 30, 1999 as compared to the same period in 1998.
The increase was due to increased core materials sales and significant increases
in seafood sales.
Core material sales were $15,279,000 and $14,105,000 for the three
months ended June 30, 1999 and 1998, respectively, and $28,653,000 and
$26,493,000 for the six months ended June 30, 1999 and 1998, respectively. The
favorable economy continues to result in strong demand in all industries that
use core materials, including the largest customer group, the boating industry.
Many of the Company's end user markets, including boating, are highly cyclical.
Demand within those industries is dependent upon, among other factors,
inflation, interest rates and consumer confidence. Fluctuating interest rates
and other changes in economic conditions make it difficult to forecast short or
long range trends. The increase in core material sales in 1999 compared to 1998
was attributable to higher volume and, to a lesser extent, improved pricing.
Seafood sales were $7,648,000 and $3,797,000 for the three months ended
June 30, 1999 and 1998, respectively, and $12,373,000 and $7,223,000 for the six
months ended June 30, 1999 and 1998 respectively. The increase was the result of
sales of seafood products from the Company's new import business, which began
during the first quarter (see Note 4).
The gross margin declined for the three and six month periods ended
June 30, 1999 compared to the same period in 1998. The margins for the Company's
core products improved slightly, primarily due to improved pricing. The gross
margin from seafood sales decreased, primarily due to lower selling prices for
shrimp products.
<PAGE>
Selling, general and administrative (SG&A) expenses as a percentage of
sales declined in the first six months of 1999 as compared to 1998. The import
business, which began during the first quarter of 1999, had a lower percentage
of S,G&A expenses as compared to the Company's historical relationship. This
reduced S,G&A as a percentage of sales during the first six months and is
expected to continue to reduce the percentage during the remainder of 1999.
Sales and expenses were affected in all periods by the different
exchange rates applied in remeasuring the books of accounts of the Company's
foreign subsidiaries.
Interest expense decreased in the first six months of 1999 as compared
to 1998. In 1999, the Company's short-term borrowings for working capital
purposes in Ecuador were US dollar denominated loans. In 1998, the Company
borrowed money for working capital purposes in Ecuador in local currency (sucre)
denominated loans. These sucre loans bear higher interest rates than U.S. dollar
loans which is partially offset by gains resulting from the devaluation of the
sucre. This practice of using sucre denominated loans increased interest expense
in 1998 but also created a corresponding foreign exchange gain. The Company's
interest rate on U.S. loans was lower in 1999 as compared to 1998 and its
average borrowings were significantly higher in 1999 as compared to 1998. The
level of borrowing in all periods is related to the Company's working capital
needs and cash flows generated from operations.
The Company had a foreign exchange loss of $10,000 and a gain of
$177,000 for the six month periods ended June 30, 1999 and 1998, respectively.
Gains were lower in 1999 due to the Company's shift in borrowings from sucre to
dollar denominated loans described above. In March of 1998, the Ecuadorian
government weakened its currency's trading band against the dollar effectively
devaluing the local currency. Translation gains and losses are mainly caused by
the relationship of the U.S. dollar to the foreign currencies in the countries
where the Company operates, and arise when remeasuring foreign currency balance
sheets into U.S. dollars. The Company utilizes foreign exchange contracts to
hedge certain inventory purchases. The Company does not enter into foreign
currency transactions for speculative purposes. Management is unable to forecast
the impact of translation gains or losses on future periods due to the
unpredictability in the fluctuation of foreign exchange.
The provision for income taxes was at the rate of 30% of pre-tax
earnings for the three and six months ended June 30, 1999 and 1998.
Year 2000
The Year 2000 issue is the result of computer programs being written
using two digits rather than four digits to define the applicable year. Any
program software and hardware, as well as certain equipment and machinery, that
are date sensitive may recognize a date using "00" as the Year 1900 rather than
the Year 2000. This could result in a system failure or miscalculations causing
disruptions of operations, including, among other things, a temporary inability
to process transactions or engage in normal business activities for both the
Company and its customers who rely on its products.
The Company has divided the Year 2000 issue into two main areas:
internal information technology ("IT") and non-IT systems, including embedded
technology such as microprocessors; and external agents including critical
suppliers, customers and other third parties the Company utilizes for various
processing functions.
<PAGE>
During the second quarter of 1999, the Company completed the
implementation of the mission-critical modules of the fully-integrated
Enterprise Resource Planning ("ERP") system purchased from a third party vendor.
The vendor has committed that the ERP software is Year 2000 compliant. The
Company now believes its internal IT systems are Year 2000 compliant. The
Company may decide to utilize additional capabilities of its ERP system and make
use of other information technologies as they become available in the
marketplace. These expenditures will be largely discretionary in that they are
not mission-critical systems and are not expected to be material.
Current plans call for the ERP system to be implemented in the U.S.
only, not in the Company's European or Ecuadorian subsidiaries. The Company has
identified all significant IT and non-IT applications that will require
modification at these locations. The modifications were completed in Ecuador
during the second quarter of 1999 and are expected to be completed in Europe
during the third quarter.
The Company has continued to assess its Year 2000 exposure as it
pertains to non-IT systems, including manufacturing process control and key
third party relationships, such as vendors and customers. This includes the
process of identifying and prioritizing critical suppliers and customers and
communicating with them about their plans and progress in addressing the Year
2000 problem. The Company also utilizes third-party vendors for processing data
and payments, e.g., payroll services, 401(k) plan administration, check
processing, medical benefits processing, etc. Communications with these vendors
to determine the status of their systems was completed during the first quarter
of 1999 and updated as necessary. The individual compliance of these third
parties varied significantly, and it is expected that the Company will continue
to monitor the progress of compliance on an ongoing basis in 1999. Should these
vendors not be compliant in a timely manner, the Company may be required to
process transactions manually or delay processing until such time as the vendors
are Year 2000 compliant.
Although the Company anticipates that minimal business disruption will
occur as a result of Year 2000 issues, there is no guarantee that possible
"worst case" Year 2000 issues of third party vendors and suppliers would not
impact the Company. To date the Company has not developed a formal contingency
plan for non-compliance and will develop such plans as necessary based on
information obtained from third parties, as well as the evaluation of its IT and
non-IT systems.
The future costs of the Company's Year 2000 efforts are expected to be
funded through existing cash resources and future operating cash flows. The
requirements for the correction of Year 2000 issues and the date on which the
Company believes it will complete the Year 2000 modifications are based on
management's current best estimates, which were derived utilizing numerous
assumptions of future events, including the continued availability of certain
resources, third-party modification plans and other factors. However, there can
be no guarantee that these estimates will be achieved and actual results could
differ materially from those anticipated. Specific factors that may cause such
material differences include, but are not limited to, the availability of
personnel trained in this area, the ability to locate and collect all relevant
computer data and similar uncertainties.
* * * * *
<PAGE>
Forward Looking Statements - Cautionary Factors
The foregoing discussion and analysis contains forward-looking
statements regarding the Company. Because such statements include risks and
uncertainties, actual results may differ materially from those expressed or
implied by such forward-looking statements. Factors that could cause actual
results to differ materially include, but are not limited to, economic
conditions in the United States, Europe and Ecuador that affect relative
interest rates, foreign exchange rates and other costs and prices related to the
Company's business.
<PAGE>
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a vote of Security Holders
On May 27,1999 the Company conducted its annual meeting of
shareholders. Of the 2,523,261 shares of the Company's common stock
entitled to vote at the meeting, 2,268,296 shares were present at
the meeting in person or by proxy.
The seven people designated by the Company's board of directors as
nominees for director were elected, with voting as follows:
Nominee Votes For Votes Withheld
------- --------- --------------
Jacques Kohn...... 2,264,484 3,812
Jean Kohn......... 2,264,284 4,012
Henri-Armand Kohn. 2,264,284 4,012
Margot W. Kohn.... 2,263,584 4,712
William F. Nicklin 2,264,884 3,412
Bernard J. Wald... 2,263,709 4,587
Benson J. Zeikowitz 2,264,384 3,912
Stockholders voted to ratify the appointment of Deloitte & Touche
LLP as the independent auditors for the Company for the year ending
December 31, 1999. There were 2,267,721 shares voted in favor of
ratification, 575 votes against and no abstentions.
Item 6. Exhibits and Reports on Form 8-K
(A) Exhibits:
11. An exhibit showing the computation of per-share earnings is
omitted because the computation can be clearly determined from
the material contained in this Quarterly Report on Form 10-Q.
27. Financial Data Schedule.
(B) Reports on Form 8-K:
No report has been filed during the six months ended June 30, 1999.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
BALTEK CORPORATION
(Registrant)
Date: August 13, 1999 /s/Jacques Kohn
---------------
Jacques Kohn
President
Date: August 13, 1999 /s/Ronald Tassello
------------------
Ronald Tassello
Chief Financial Officer and Treasurer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary information extracted from Baltek Corporation and
subsidiaries consolidated financial statements and related exhibits for the six
months ended June 30, 1999 and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> JUN-30-1999
<CASH> 1,812,000
<SECURITIES> 0
<RECEIVABLES> 9,732,000
<ALLOWANCES> 188,000
<INVENTORY> 19,590,000
<CURRENT-ASSETS> 32,311,000
<PP&E> 35,524,000
<DEPRECIATION> 22,170,000
<TOTAL-ASSETS> 54,381,000
<CURRENT-LIABILITIES> 18,126,000
<BONDS> 0
0
0
<COMMON> 2,523,000
<OTHER-SE> 32,567,000
<TOTAL-LIABILITY-AND-EQUITY> 54,381,000
<SALES> 41,026,000
<TOTAL-REVENUES> 41,026,000
<CGS> 31,451,000
<TOTAL-COSTS> 38,513,000
<OTHER-EXPENSES> 641,000
<LOSS-PROVISION> 52,000
<INTEREST-EXPENSE> 633,000
<INCOME-PRETAX> 1,872,000
<INCOME-TAX> 562,000
<INCOME-CONTINUING> 1,310,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,310,000
<EPS-BASIC> 0.52
<EPS-DILUTED> 0.52
</TABLE>
