<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 March 31, 1998
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 000-23213
YOUNG INNOVATIONS, INC.
(Exact name of registrant as specified in its charter)
Missouri 43-1718931
(State or other jurisdiction of incorporation (I.R.S. Employer
or organization) Identification No.)
13705 Shoreline Court East, Earth City, Missouri 63045
(Address of principal executive offices)
(Zip Code)
(314) 344-0010
(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
------- --------
Number of shares outstanding of the Registrant's Common Stock at April 30,
1998:
6,772,796 shares of Common Stock, par value $.01 per share
1
<PAGE> 2
PART 1
FINANCIAL INFORMATION
Item 1. Financial Statements.
YOUNG INNOVATIONS, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
MARCH 31 DECEMBER 31
1998 1997
---- ----
ASSETS (UNAUDITED)
CURRENT ASSETS:
<S> <C> <C>
Cash and cash equivalents................................................ $ 1,596 $12,761
Trade accounts receivable, net of allowance for doubtful accounts of $121
and $80, respectively.................................................... 3,209 2,774
Inventories.............................................................. 2,776 2,239
Other current assets..................................................... 1,518 1,316
------- -------
Total current assets................................................... 9,099 19,090
------- -------
PROPERTY, PLANT AND EQUIPMENT............................................... 11,351 7,441
------- -------
MARKETABLE SECURITIES....................................................... -- 100
------- -------
OTHER ASSETS................................................................ 592 656
------- -------
INTANGIBLE ASSETS........................................................ 28,597 18,142
------- -------
Total assets........................................................... $49,639 $45,429
------- -------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Revolving line of credit................................................. $ -- $ --
Current maturities of long-term debt..................................... -- --
Accounts payable and accrued liabilities................................. 4,645 2,715
------- -------
Total current liabilities................................................ 4,645 2,715
------- -------
LONG-TERM DEBT.............................................................. -- --
------- -------
NONCURRENT LIABILITIES...................................................... 450 456
------- -------
DEFERRED INCOME TAXES....................................................... 1,050 1,050
------- -------
STOCKHOLDERS' EQUITY:
Common stock, voting, $.01 par value, 25,000,000 shares authorized,
6,772,796 and 6,710,296 shares issued and outstanding in 1998 and
1997, respectively..................................................... 68 67
Additional paid-in capital............................................... 26,083 25,131
Unrealized gain on marketable securities, net of tax..................... -- 9
Retained earnings........................................................ 17,652 16,310
Common stock in treasury, at cost, 39,914 and 41,834 shares.............. (309) (309)
------- -------
Total stockholders' equity............................................. 43,494 41,208
------- -------
Total liabilities and stockholders' equity............................. $49,639 $45,429
------- -------
</TABLE>
The accompanying notes are an integral part of these statements.
2
<PAGE> 3
YOUNG INNOVATIONS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31
------------------
1998 1997
------ ------
<S> <C> <C>
NET SALES....................................................... $7,167 $6,549
COST OF GOODS SOLD.............................................. 3,049 2,693
------ ------
Gross profit...................................... 4,118 3,856
SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES................................................ 2,112 1,927
------ ------
Income from operations............................ 2,006 1,929
------ ------
OTHER INCOME (EXPENSE)
Interest expense........................................ -- (307)
Other income (expense), net............................. 161 5
------ ------
161 (302)
------ ------
Income before provision for income taxes.......... 2,167 1,627
PROVISION FOR INCOME TAXES...................................... 823 603
------ ------
Net income........................................ $1,344 $1,024
====== ======
BASIC EARNINGS PER SHARE........................................ $ 0.20 0.23
====== ======
DILUTED EARNINGS PER SHARE...................................... $ 0.20 0.23
====== ======
BASIC WEIGHTED AVERAGE SHARES OUTSTANDING....................... 6,731 4,409
====== ======
DILUTED WEIGHTED AVERAGE SHARES
OUTSTANDING............................................. 6,790 4,409
====== ======
The accompanying notes are an integral part of these statements.
</TABLE>
3
<PAGE> 4
YOUNG INNOVATIONS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31
-----------------
1998 1997
CASH FLOWS FROM OPERATING ACTIVITIES: ------ ------
<S> <C> <C>
Net Income $ 1,344 $ 1,024
-------- --------
Adjustments to reconcile net income to cash flows from
operating activities --
Depreciation and amortization 383 302
Gain (loss) on sale of property, plant and equipment (22) 2
Changes in assets and liabilities --
Trade accounts receivable 528 476
Inventories 77 97
Other current assets (39) (34)
Other assets 534 (25)
Accounts payable and accrued liabilities (225) 416
-------- --------
Total adjustments 1,236 1,234
-------- --------
Net cash flows from operating activities 2,580 2,258
-------- --------
CASH FLOWS FROM INVESTING ACTIVITES:
Payments for acquisitions, net of cash acquired (13,584) --
Purchases of property, plant and equipment (227) (212)
Proceeds from sale of property,plant and equipment 13 11
Proceeds from marketable securities 100 102
Payments on notes receivable -- 8
-------- --------
Net cash flows from investing activities (13,698) (91)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Equity issuance costs (47) --
Proceeds from sale of treasury stock -- 26
Payments of long-term debt -- (1,700)
Proceeds from line of credit -- 225
Payments on line of credit -- (604)
-------- --------
Net cash flows from financing activities (47) (2,053)
-------- --------
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (11,165) 114
CASH AND CASH EQUIVALENTS, beginning of period 12,761 (102)
-------- --------
CASH AND CASH EQUIVALENTS, end of period $ 1,596 $ 12
======== ========
The accompanying notes are an integral part of these statements.
</TABLE>
4
<PAGE> 5
YOUNG INNOVATIONS, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1998
(Dollars in thousands, except share data)
GENERAL
In the opinion of the Company, the accompanying consolidated financial
statements contain all adjustments (consisting of only normal recurring
adjustments) necessary to present fairly the financial position as of March 31,
1998 (unaudited) and the unaudited results of operations and cash flows for the
three months ended March 31, 1998 and March 31, 1997. The financial statements
have been prepared in accordance with the requirements of Form 10-Q and
consequently do not include all the disclosures normally made in an Annual
Report on Form 10-K. Accordingly, the consolidated financial statements
included herein should be reviewed in conjunction with the financial
statements and the footnotes thereto included in the Company's 1997 Annual
Report on Form 10-K.
The results of operations for the three months ended March 31, 1998 are not
necessarily indicative of the results to be expected for the full year.
1. DESCRIPTION OF BUSINESS:
Young Innovations, Inc. and its subsidiaries (the Company) designs,
manufactures and markets single-use supplies, autoclavable instruments, X-ray
machines and other products used by dental professionals, primarily in
preventive dentistry, diagnostics and infection control. The Company
manufactures and markets metal and disposable prophy angles, cups and brushes
that are integral components used in the cleaning and polishing of teeth by
dental professionals. The Company's manufacturing facilities are located in
Missouri, California, Indiana and Texas. The Company markets its products to
dental professionals worldwide through a network of medical and dental product
distributors.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
PRINCIPLES OF CONSOLIDATION
The consolidated financial statements include the accounts of Young
Innovations, Inc. formed in July 1995 and its direct and indirect wholly owned
subsidiaries, Young Dental Manufacturing Company, Lorvic Holdings, Inc., The
Lorvic Corporation, Young Dental International, Inc., Denticator International,
Inc. (Denticator) and Panoramic Corporation (Panoramic). Panoramic is
included since its acquisition on February 27, 1998. All significant
intercompany accounts and transactions are eliminated in consolidation.
3. ACQUISITIONS:
On February 27, 1998, the Company through a wholly-owned subsidiary,
acquired substantially all of the assets and assumed certain liabilities of
Panoramic, an Indiana corporation.The purchase price was financed principally
through cash from the remaining net proceeds of the Company's initial public
offering and additionally through the issuance of $1,000 (62,500 shares) of the
Company's common stock.The acquisition of Panoramic was accounted for as a
purchase transaction. The purchase price was allocated based upon preliminary
estimates of fair value. Differences between the amounts included herein, if
any, and final allocations of purchase price are not expected to have a
material effect on the Company's financial statements.
The excess of purchase price over the estimated fair value of net assets
acquired was $10,425 , is comprised of goodwill, a non-compete covenant and
customer database programs and is being amortized over 40, 2 and 5 years,
respectively. The preliminary purchase price allocation is as follows:
<TABLE>
<S> <C>
Trade accounts receivable...................................... $ 962
Inventories.................................................... 616
Other current assets........................................... 163
Property, plant and equipment.................................. 3,924
Other assets................................................... 19
Intangible assets.............................................. 10,425
Current liabilities............................................ (1,181)
Noncurrent liability........................................... (44)
-------
Payments, cash and stock ...................................... $14,884
=======
</TABLE>
5
<PAGE> 6
The results of operations for Panoramic are included in the consolidated
financial statements since February 27, 1998.
The following unaudited pro forma information presents a summary of
consolidated results of operations of the Company and Panoramic as if the
acquisition had occurred at the beginning of 1998 and 1997, with pro forma
adjustments to give effect to amortization of goodwill and certain other
adjustments, together with related income tax effects. The unaudited pro forma
information does not purport to be indicative of the results of operations
had these transactions been completed as of the assumed dates or which may be
obtained in the future.
<TABLE>
<CAPTION>
THREE MONTHS THREE MONTHS
ENDED ENDED
MARCH 31, MARCH 31,
1998 1997
---- ----
(UNAUDITED) (UNAUDITED)
<S> <C> <C>
Net sales.............................. $8,591 $8,411
Net income............................. 1,362 944
Basic and diluted earnings per share... .20 .21
</TABLE>
4. INVENTORIES:
Inventories consist of the following:
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
1998 1997
---- ----
(UNAUDITED)
<S> <C> <C>
Finished products........................... $ 809 $ 824
Work in process............................. 1,078 975
Raw materials and supplies.................. 991 543
------ ------
2,878 2,342
Reserve for obsolete and excess inventories. (102) (103)
------ ------
Total inventories........................... $2,776 $2,239
====== ======
</TABLE>
5. COMMON STOCK:
The Company issued $1,000 (62,500 shares) of its common stock on February
27, 1998 as part of the consideration for the acquisition of the assets and
liabilities of Panoramic (see Note 3).
6. STOCK OPTIONS:
The Company granted to four former Panoramic employees, who are currently
employees of the Company, stock options to purchase 40,000 shares of the
Company's common stock at an exercise price equal to the closing price of the
Company's common stock on February 27, 1998, the date of closing and the date
of the grant. Each of the options first become exercisable as to 25% of the
shares subject to the options on January 1, 1999, and becomes exercisable as to
an additional 25% on January 1 of each year from 2000 to 2002.These options
expire in ten years from the grant date or, in the event of termination of
employment, at the election of the Company, upon: (i) a cash payment of the
amount by which the fair value of the options exceed the exercise price for
such options; or (ii) the execution of a consulting agreement in which case the
options terminate upon the termination of the consulting agreement.
6
<PAGE> 7
A summary of the options outstanding and exercisable at March 31, 1998 is
as follows:
<TABLE>
<CAPTION>
WEIGHTED
RANGE OF AVERAGE
EXERCISE EXERCISE
SHARES PRICES PRICE
------ --------------- --------
<S> <C> <C> <C>
Outstanding, beginning of year 234,600 $12.00--$13.50 $12.03
Granted....................... 45,000 $17.00--$17.50 $17.06
Exercised..................... -- -- --
Forfeited..................... 1,600 $12.00 $12.00
-------
Outstanding, end of quarter... 278,000 $12.00 --$17.50 $12.85
=======
Exercisable at end of quarter. 35,000 $12.00 --$17.50 $13.00
=======
</TABLE>
In accordance with SFAS No. 123, "Accounting for Stock-Based
Compensation," the Company elected APB Opinion No. 25, "Accounting for Stock
Issued to Employees," and related interpretations in accounting for the Plan.
Accordingly, no compensation cost has been recognized for the Plan.
7. EARNINGS PER SHARE:
During 1997, the Company adopted Statement of Financial Accounting
Standards No. 128, Earnings per Share. Basic earnings per share (Basic EPS) is
computed by dividing net income by the weighted average number of shares of
common stock outstanding during the period. Diluted earnings per share (Diluted
EPS) include the dilutive effect of stock options, if any, using the treasury
stock method. For the first quarter ended March 31,1998, the weighted average
shares outstanding during the period of 6,731,129, used for Basic EPS, was
increased by the dilutive impact of stock options of 58,831, for a total of
6,789,960 shares used for Diluted EPS.
8. RELATED-PARTY TRANSACTIONS:
In connection with the acquisition of Denticator on July 22, 1996,an
employment agreement (the Agreement) with Denticator's President and Chief
Executive Officer (the Individual) was executed. On April 6,1998, the Company
agreed to an amendment (the Amendment) to the Agreement. The Agreement required
the Company to deliver common stock in the number of shares equal to $800
divided by the last reported sale price to the Individual if the Individual is
employed by the Company on July 22, 1998. The Agreement also required the
Company to repurchase up to 40% of the stock if the Individual provided 10 days
advance written notice to the Company before delivery of the common stock. The
Amendment requires the Company to pay cash in the amount of $800 on July 22,
1998 with no delivery of any common stock to the Individual if the Individual
is employed by the Company on July 22, 1998. The Company is accruing $800
evenly over the two year period and recorded $100 of compensation expense for
each of the quarters ended March 31, 1998 and March 31,1997. As of March 31,
1998, accounts payable and accrued liabilities include $676 related to this
Agreement.
7
<PAGE> 8
9. CONTINGENCIES:
On May 30, 1997, two former employees of Young Dental and a corporation
formed by them (the "Adverse Parties") filed a Petition against Young Dental in
the Circuit Court for the City of St. Louis, Missouri (the "Current Action").
The Current Action results from an action brought in 1993 by Young Dental
against the Adverse Parties in the Federal District Court for the Eastern
District of Missouri (the "Prior Action"), alleging, among other things, patent
infringement and misappropriation of trade secrets. The Prior Action was
resolved in favor of the Adverse Parties. In the Current Action, consisting of
three counts alleging malicious prosecution and three counts alleging abuse of
process related to the Prior Action, the Adverse Parties seek actual damages in
unspecified amounts in excess of $25 and, in a separate count, seek punitive
damages. The Adverse Parties also seek to recover their attorneys' fees
incurred in the Prior Action, which they claim exceed $750. While the Current
Action, which is scheduled for trial late in 1998, is still in the discovery
stage, based upon the advice of legal counsel, the Company believes it has
adequate defenses to each of plaintiffs' claims and intends to defend the
Current Action vigorously.
The Internal Revenue Service (the "IRS") examined Lorvic's federal income
tax returns for the years ended March 31, 1992 through 1995, and proposed
deficiencies in federal income taxes for those years in an aggregate amount of
$766 due to the classification of certain intangible assets. Lorvic filed
petitions with the United States Tax Court contesting these proposed
deficiencies and the matter was tried in January 1998. The parties are
currently briefing their positions, and the Company anticipates a decision from
the Tax Court within the next year. In accordance with the stock purchase
agreement pursuant to which the Company acquired Lorvic in May 1995, the
previous stockholders of Lorvic are responsible for the settlement of this
matter to the extent of $700 held in an escrow fund, together with earnings
thereon, plus an additional $200 to cover any interest and penalties related to
such matters. While there can be no such assurance, the Company believes the
escrowed amounts will be sufficient to satisfy these deficiencies in full for
all affected years if required.
In the opinion of management, the ultimate outcome of these claims and
lawsuit will not have a material adverse effect on the financial position or
results of operations of the Company.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
RESULTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 1998 COMPARED TO THREE MONTHS ENDED MARCH 31, 1997
NET SALES
Net sales increased $618,000, or 9.4%, to $7.2 million in 1998 from $6.5
million in 1997. The increase was primarily attributable to the acquisition of
Panoramic Corporation on February 27, 1998.
8
<PAGE> 9
GROSS PROFIT
Gross profit increased $262,000, or 6.8%, to $4.1 million in 1998 from
$3.9 million in 1997. Gross margin decreased to 57.5% of net sales in 1998
from 58.9% in 1997. Gross profit benefited from the acquisition of Panoramic
and production improvements at Denticator. The Company's gross margin
decreased as a result of Panoramic which historically has lower margins. Gross
margins at Denticator improved as a result of its injection molding operations
versus this same quarter in 1997 when Denticator was purchasing its DPA
components from an outside vendor.
SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES
SG&A expenses increased $185,000, or 9.6%, to $2.1 million in 1998 from
$1.9 million in 1997. As a percent of net sales, SG&A expenses increased to
29.5% in 1998 from 29.4% in 1997. SG&A expenses primarily increased due to the
addition of Panoramic. Excluding the Panoramic acquisition, SG&A expenses
decreased $55,000. Legal costs relating to the countersuit brought by two former
employees and research and development expenses related to prototype tooling
and services on product development projects increased.
INCOME FROM OPERATIONS
Income from operations increased $77,000 or 4.0%, to $2.0 million in 1998
from $1.9 million in 1997.
INTEREST EXPENSE
Interest expense decreased $307,000 to $0 in 1998 from $307,000 in 1997.
The decrease was due to the retirement of all of the Company's bank debt from
the net proceeds of the Company's initial public offering in November, 1997.
OTHER INCOME (EXPENSE)
Other income (expense) increased $156,000 to $161,000 in 1998 from $5,000
in 1997 primarily due to interest income earned in the first two months of the
current year quarter (prior to the Panoramic acquisition) on the net proceeds
from the initial public offering in excess of what was used to retire bank
debt.
PROVISION FOR INCOME TAXES
Provision for income taxes increased $220,000 for 1998 to $823,000 from
$603,000 for 1997 as a result of a 33% increase in the income before income
taxes versus the year ago period and an effective tax rate of 38% versus 37% in
the year earlier quarter.
LIQUIDITY AND CAPITAL RESOURCES
Historically, the Company has financed its operations primarily through
cash flow from operating activities and, to a lesser extent, through borrowings
under its credit facilities. Net cash flow from operating activities was $2.6
million for the quarter ended March 31, 1998 compared to $2.3 million in the
prior year quarter. Capital expenditures for property, plant and equipment
were $227,000 in the first quarter of 1998 in line with the Company's estimates
for the year. Consistent with the Company's historical capital expenditures,
future capital expenditures are expected to include injection molding
equipment, computer numeric controlled equipment and upgrades to production
machinery and data processing.
9
<PAGE> 10
On November 10, 1997, the Company used $13.2 million of the $25.2 million
net proceeds from its initial public offering to repay the balance outstanding
under its Revolving Credit and Term Loan Agreement. The Company used the $12
million balance of such net proceeds to provide a portion of the $13.6 million
used by the Company to buy assets and repay debt of Panoramic. In February
1998, the Company's lending bank provided a one-year commitment, subject to
final documentation and the absence of any material advers change in the
Company, to provide the Company with a line of credit for up to $15 million on
an unsecured basis. Borrowings under the line would bear interest at the
90-day LIBOR rate plus 100 basis points.
On May 30, 1997, two former employees of Young Dental and a corporation
formed by them (the "Adverse Parties") filed a Petition against Young Dental in
the Circuit Court for the City of St. Louis, Missouri (the "Current Action").
The Current Action results from an action brought in 1993 by Young Dental
against the Adverse Parties in the Federal District Court for the Eastern
District of Missouri (the "Prior Action"), alleging, among other things, patent
infringement and misappropriation of trade secrets. The Prior Action was
resolved in favor of the Adverse Parties. In the Current Action, consisting of
three counts alleging malicious prosecution and three counts alleging abuse of
process related to the Prior Action, the Adverse Parties seek actual damages in
unspecified amounts in excess of $25 and, in a separate count, seek punitive
damages. The Adverse Parties also seek to recover their attorneys' fees incurred
in the Prior Action, which they claim exceed $750. While the Current Action,
which is scheduled for trial late in 1998, is still in the discovery stage,
based upon the advice of legal counsel, the Company believes it has adequate
defenses to each of plaintiffs' claims and intends to defend the Current Action
vigorously.
The Internal Revenue Service (the "IRS") examined Lorvic's federal income
tax returns for the years ended March 31, 1992 through 1995, and proposed
deficiencies in federal income taxes for those years in an aggregate amount of
$766 due to the classification of certain intangible assets. Lorvic filed
petitions with the United States Tax Court contesting these proposed
deficiencies and the matter was tried in January 1998. The parties are
currently briefing their positions, and the Company anticipates a decision from
the Tax Court within the next year. In accordance with the stock purchase
agreement pursuant to which the Company acquired Lorvic in May 1995, the
previous stockholders of Lorvic are responsible for the settlement of this
matter to the extent of $700 held in an escrow fund, together with earnings
thereon, plus an additional $200 to cover any interest and penalties related to
such matters. While there can be no such assurance, the Company believes the
escrowed amounts will be sufficient to satisfy these deficiencies in full for
all affected years if required.
Anticipated internal cash flows and borrowings under the Company's
anticipated line of credit facility are expected to provide sufficient
liquidity for working capital needs, capital expenditures and potential
acquisitions through 1998.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Not required.
10
<PAGE> 11
PART II
OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits.
Number Description
------ -----------
27 Financial Data Schedule
(b) Reports on Form 8-K.
One report on Form 8-K was filed by the Company during the
quarter ended March 31, 1998. The report, filed on March 11, 1998,
included information regarding the acquisition of Panoramic; the
report did not include any financial statements.
Signature
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.
YOUNG INNOVATIONS, INC.
May 15, 1998 /s/ Michael W. Eggleston
- ------------ ----------------------------
Date Michael W. Eggleston
Vice President, Treasurer and
Chief Financial Officer
11
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM REGISTRANT'S
UNAUDITED FINANCIAL STATEMENTS AS OF MARCH 31, 1998 AND FOR THE QUARTER THEN
ENDED 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> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 1,596
<SECURITIES> 0
<RECEIVABLES> 3,330
<ALLOWANCES> 121
<INVENTORY> 2,776
<CURRENT-ASSETS> 9,099
<PP&E> 16,768
<DEPRECIATION> 5,417
<TOTAL-ASSETS> 49,639
<CURRENT-LIABILITIES> 4,645
<BONDS> 0
0
0
<COMMON> 68
<OTHER-SE> 43,426
<TOTAL-LIABILITY-AND-EQUITY> 49,639
<SALES> 7,167
<TOTAL-REVENUES> 7,167
<CGS> 3,049
<TOTAL-COSTS> 3,049
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 41
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 2,167
<INCOME-TAX> 823
<INCOME-CONTINUING> 1,344
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,344
<EPS-PRIMARY> .20
<EPS-DILUTED> .20
</TABLE>
