UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended April 30, 1995
Commission file Number 0-5958
SURVIVAL TECHNOLOGY, INC.
-------------------------
(Exact name of registrant as specified in its charter)
Delaware 52-0898764
- ------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2275 Research Blvd., Rockville, MD 20850
- ---------------------------------------- ---------
(Address of principal executive offices) (Zip Code)
(301) 926-1800
- ---------------------------------------------------
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 as of May 31, 1995
- --------------- ---------------------------------
Common Stock 3,086,500 Shares
$.10 par value
<PAGE> 2
SURVIVAL TECHNOLOGY, INC.
FORM 10-Q
For the Quarter ended April 30, 1995
Page No.
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements (Unaudited)
Consolidated Condensed Balance Sheets as of
April 30, 1995 and July 31, 1994......... 3
Consolidated Condensed Statements of Income
for the Three-Month Periods Ended
April 30, 1995 and 1994.................. 5
Consolidated Condensed Statements of Income
for the Nine-Month Periods Ended
April 30, 1995 and 1994.................. 6
Consolidated Condensed Statements of Cash
Flows for the Nine Months Ended
April 30, 1995 and 1994.................. 7
Notes to Consolidated Condensed Financial
Statements ............................. 9
ITEM 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations............................... 10
PART II. OTHER INFORMATION
ITEM 6. Exhibits and Reports on Form 8-K .......... 16
SIGNATURES ......................................... 17
<PAGE> 3
SURVIVAL TECHNOLOGY, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
<TABLE>
<CAPTION>
April 30, July 31,
1995 1994
(unaudited) (audited)
------------ -----------
<S> <C> <C>
ASSETS
Current assets
Cash $ 271,300 $ 65,000
Receivables 5,077,800 5,936,300
Inventories 4,890,200 2,795,300
Prepaid expenses and
other assets 658,500 582,000
Deferred income taxes 848,100 848,100
----------- -----------
Total current assets 11,745,900 10,226,700
----------- -----------
Fixed assets 23,611,600 20,919,700
Less accumulated
depreciation 9,886,500 9,027,000
----------- -----------
13,725,100 11,892,700
----------- -----------
Patents and licenses at
cost less amortization
of $523,500 and $572,800 2,045,600 1,986,500
Other noncurrent assets 36,500 95,300
----------- -----------
$27,553,100 $24,201,200
=========== ===========
</TABLE>
<PAGE> 4
<TABLE>
<CAPTION>
SURVIVAL TECHNOLOGY, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(continued)
April 30, July 31,
1995 1994
(unaudited) (audited)
------------- ------------
<S> <C> <C>
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Note payable to bank $ 4,838,400 $ 1,304,500
Note payable to Syntex 800,000 800,000
Current portion of long-term
debt 410,100 358,900
Accounts payable 1,689,200 1,145,100
Other liabilities and
accrued expenses 1,319,200 1,581,800
---------- -----------
Total current liabilities 9,056,900 5,190,300
Note payable to Syntex 788,400 1,388,400
Other long-term debt 118,000 231,800
Other noncurrent liabilities 457,400 461,300
Deferred income taxes 1,239,400 1,239,400
----------- -----------
Total liabilities 11,660,100 8,511,200
----------- -----------
SHAREHOLDERS' EQUITY:
Common stock, $.10 par value;
10,000,000 shares authorized;
3,085,400 and 3,085,400 shares
issued and outstanding 308,500 308,500
Paid-in capital in excess of
par value 5,072,700 5,072,700
Retained earnings 10,511,800 10,308,800
----------- -----------
Total shareholders' equity 15,893,000 15,690,000
----------- -----------
$27,553,100 $24,201,200
=========== ===========
</TABLE>
See accompanying notes to consolidated condensed financial
statements.
<PAGE> 5
SURVIVAL TECHNOLOGY, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
April 30,
----------------------------
1995 1994
------------- ------------
<S> <C> <C>
Net sales $ 5,592,000 $ 6,048,100
Cost of sales 3,693,000 4,226,300
------------ -----------
Gross profit 1,899,000 1,821,800
------------ -----------
Selling, general &
administrative expense 900,300 1,035,700
Research & development
expense 287,300 283,200
Depreciation and
amortization expense 428,200 312,500
------------ -----------
1,615,800 1,631,400
------------ -----------
Operating income 283,200 190,400
------------ -----------
Other (expense) income:
Interest expense (111,000) (48,500)
Other income 67,300 26,100
------------ -----------
(43,700) (22,400)
------------ -----------
Income before income taxes 239,500 168,000
Provision for income taxes 85,400 65,500
------------ -----------
Net income $ 154,100 $ 102,500
============ ===========
Per common share:
Net income $ .05 $ .03
===== =====
Average number of common
shares outstanding 3,106,700 3,117,200
--------- ---------
</TABLE>
See accompanying notes to consolidated condensed financial
statements.
<PAGE> 6
SURVIVAL TECHNOLOGY, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
April 30,
-----------------------------
1995 1994
------------- ------------
<S> <C> <C>
Net sales $ 17,004,100 $19,021,800
Cost of sales 11,580,000 11,933,400
------------ -----------
Gross profit 5,424,100 7,088,400
------------ -----------
Selling, general &
administrative expense 2,985,200 3,314,300
Research & development
expense 848,100 859,900
Depreciation and
amortization expense 1,155,600 1,047,800
------------ -----------
4,988,900 5,222,000
------------ -----------
Operating income 435,200 1,866,400
------------ -----------
Other (expense) income:
Interest expense (264,000) (112,500)
Other income 146,000 103,500
------------ -----------
(118,000) (9,000)
------------ -----------
Income before income taxes 317,200 1,857,400
Provision for income taxes 114,200 702,900
------------ -----------
Net income $ 203,000 $ 1,154,500
============ ===========
Per common share:
Net income $ .07 $ .37
===== =====
Average number of common
shares outstanding 3,102,300 3,116,500
--------- ---------
</TABLE>
See accompanying notes to consolidated condensed financial
statements.
<PAGE> 7
SURVIVAL TECHNOLOGY, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
April 30,
-------------------------
1995 1994
------------ -----------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 203,000 $1,154,500
Adjustments to reconcile net
income to net cash used for
operating activities
Depreciation and amortization 1,155,600 1,047,800
Gain on fixed asset disposals (63,500)
Deferred lease incentives (22,700) 12,600
Decrease (increase) in
receivables 858,500 (878,600)
(Increase) decrease in
inventories (2,094,900) 61,900
Increase in prepaid expenses
and other assets (104,500) (242,000)
Increase (decrease) in accounts
payable 544,100 (110,300)
Decrease in other liabilities
and accrued expenses (262,600) (63,200)
--------- ---------
Net cash used for
operating activities 276,500 919,200
----------- -----------
Cash flows from investing activities:
Purchases of fixed assets (2,828,200) (2,345,400)
Purchases of patents and
licenses (173,600) (152,500)
Decrease (increase) in other
noncurrent assets 41,500 (1,200)
Increase (decrease) in other
noncurrent liabilities 18,800 (18,400)
---------- -----------
Net cash used for
investing activities (2,941,500) (2,517,500)
----------- ----------
</TABLE>
<PAGE> 8
SURVIVAL TECHNOLOGY, INC.
STATEMENTS OF CASH FLOWS (continued)
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
April 30,
-----------------------
1995 1994
---------- ----------
<S> <C> <C>
Cash flows from financing activities:
Proceeds on note payable
to bank $ 3,533,900 $1,290,100
Payment on note payable
to Syntex (600,000) -
Payment on long-term debt (62,600) (178,600)
Increase in other noncurrent
liabilities 250,000
Proceeds from issuance of
common stock 3,900
---------- ----------
Net cash provided by
financing activities 2,871,300 1,365,400
---------- ----------
Net increase (decrease) in cash $ 206,300 $ (232,900)
========== ==========
Cash at beginning of period $ 65,000 $ 274,700
Cash at end of period 271,300 41,800
---------- ----------
Net increase (decrease) in cash $ 206,300 $ (232,900)
========== ==========
</TABLE>
See accompanying notes to consolidated condensed financial
statements.
<PAGE> 9
SURVIVAL TECHNOLOGY, INC.
FORM 10-Q
For the Quarter ended April 30, 1995
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
A. In the opinion of management, the accompanying
unaudited consolidated condensed financial statements
contain all adjustments (consisting of normal recurring
accruals) necessary to present fairly the Company's
financial position as of April 30, 1995 and July 31,
1994, the results of its operations for the three-month
and nine-month periods ended April 30, 1995 and 1994,
and its cash flows for the nine-month periods ended
April 30, 1995 and 1994. The results of operations
for the three-month and nine-month periods ended April
30, 1995 are not necessarily indicative of the result
that may be expected for the fiscal year ending
July 31, 1995.
B. The significant accounting principles and practices
followed by the Company are set forth in Note 1 of the
Notes to Consolidated Financial Statements in the
Survival Technology, Inc. Annual Report on Form 10-K
for the year ended July 31, 1994.
C. Inventories consisted of the following:
<TABLE>
<CAPTION>
April 30, July 31,
1995 1994
----------- -----------
<S> <C> <C>
Components and subassemblies $ 2,927,200 $ 1,739,200
Material, labor and overhead
costs in process 1,280,900 438,700
Finished goods 915,600 895,200
----------- -----------
5,123,700 3,073,100
Inventory reserve (233,500) (277,800)
----------- -----------
Total $ 4,890,200 $ 2,795,300
=========== ===========
</TABLE>
D. On May 23, 1995, the Company entered into a loan
agreement with The CIT Group/Equipment Financing,
Inc. to assist in financing the Company's capital
investment program targeted to automate production
processes to improve profit margins. This
arrangement will consist of a series of loans
<PAGE> 10
SURVIVAL TECHNOLOGY, INC.
FORM 10-Q
For the Quarter ended April 30, 1995
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(continued)
for the acquisition of production molds, high speed
component preparation and filling equipment and
facility renovations not to exceed a maximum
aggregate of $3 million. Additional terms include
repayment of each loan in sixty (60) equal monthly
installments at an interest rate equal to the
Treasury Yield (as published in the Wall Street
Journal two business days prior to closing on a
loan amount) plus 247 basis points.
ITEM 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
The Quarter and Nine Months in Review
- -------------------------------------
The Company reported net income of $154,100 ($.05 per
share) on sales of $5.6 million for the third quarter of
fiscal 1995 compared with net income of $102,500 ($.03
per share) on sales of $6 million in the same period of
fiscal 1994. Net income totalled $203,000 ($.07 per
share) on sales of $17 million for the nine months ended
April 30, 1995 compared with net income of $1,154,500
($.37 per share) on sales of $19 million during the
nine-months ended April 30, 1994.
Notwithstanding that revenues for the quarter decreased
8%, operating income increased almost 50% as gross margins
improved to 34% in the current quarter compared to 30% in
the same prior year period. This improvement was on the
strength of increased sales of funded R&D revenues which
more than doubled from $292,700 in last year's third
quarter to $682,300 in the current quarter. Operating
income for the nine months ended April 30, 1995 was
adversely affected by lower gross margins which decreased
to 32% compared to 37% in the same prior year period.
Factors contributing to this decrease were the previously
reported shutdown of the Company's St. Louis manufacturing
facility during the first month of fiscal 1995 sales of
lower margin foreign military auto-injectors delivered
during the second and third quarters and lower revenues
from commercial products and funded R&D activities in the
first half of fiscal 1995. The Company's competitive bid
<PAGE> 11
SURVIVAL TECHNOLOGY, INC.
FORM 10-Q
For the Quarter ended April 30, 1995
ITEM 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (continued)
for this foreign military contract anticipated a lower
margin in pursuit of contract award to better position
itself for additional future business.
Commercial products and funded R&D revenues declined
$874,200 (21%) to $3.3 million during the third quarter and
$3.7 million (28%) to $9.7 million and first nine months
of fiscal 1995 compared with the same prior year periods.
These sales declines represent a 21% decrease in the
current quarter and 28% decrease for nine months ended
April 30, 1995 which were primarily due to lower
CytoGuard (R) sales coupled with the absence of revenues
from the Medical Device Division ($361,200 for the quarter
and $1.6 million for the nine months ended April 30, 1995)
which was sold in July 1994. As previously reported,
the Company anticipated a decline in revenues from its
patented CytoGuard Aerosol Protective Device due to a
change in the distribution method from a single unit to
multi-unit package by Bristol-Myers Squibb, STI's
exclusive U.S. distributor for the CytoGuard. CytoGuard
sales were down $689,600 (100%) for the quarter and
$2.3 million (75%) for the first nine months when compare
with the same periods in fiscal 1994. This decline in
revenue was partially offset by EpiPen (R) auto-injector
sales, which increased $223,700 (11%) in the current
quarter and $992,100 (19%) in the first nine months of
fiscal 1995 when compared with the same prior year periods.
Increased sales from military products partially offset
the aforementioned decline in commercial revenues.
Military revenues were $2.3 million in the current quarter
and $7.3 million for the first nine months of fiscal 1995
which represent increases of $418,200 (22%) and
$1.7 million (31%), respectively, over the same periods
in fiscal 1994. These increases were primarily
attributable to sales of foreign military auto-injectors
mentioned above.
In early June 1995, STI responded to the U.S. Department
of Defense ("DoD") solicitation for a three-year extension
on the current industrial base maintenance contract which
expires September 30, 1995, with a new contract award
expected in the first quarter of fiscal 1996. During the
<PAGE> 12
SURVIVAL TECHNOLOGY, INC.
FORM 10-Q
For the Quarter ended April 30, 1995
ITEM 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (continued)
fourth quarter, the Company completed its development of
the Diazepam auto-injector with the submission of a
supplemental New Drug Application ("NDA") by the DoD to
the Food and Drug Administration ("FDA"). This
supplemental NDA is currently under review by the FDA
with approval expected in July/August. Initial deliveries
of the Diazepam auto-injectors are anticipated for the
first quarter of fiscal 1996.
Operating margins are expected to continue improving
during the fourth quarter based on stronger sales of
commercial products. The Company anticipates fiscal 1995
EpiPen sales to improve over prior year levels with
expanded marketing activities by Center Laboratories,
Inc., the exclusive distributor of the EpiPen. During
1995, Center signed a co-marketing agreement for
international markets with ALK, Inc., a Danish company.
The anticipated fiscal 1995 introduction of the new
generation EpiPen, called the EpiE-ZPen (TM) will be
delayed to fiscal 1996 as FDA approval is still pending.
This new injector has additional safety features and
user convenience enhancements to better serve the
consumer market, and will be positioned to expand
epinephrine auto-injector use in U. S. and international
markets.
Selling, general and administrative expenses ("SG&A")
decreased $135,400 (13%) and $329,100 (10%) during the
third quarter and first nine months of the current fiscal
year when compared with the same periods last year. The
current quarter decrease resulted from the absence of SG&A
expenses related to the Medical Device Division (sold in
July 1994) as well as lower expenditures for professional
services. These factors coupled with a lower fiscal
1995 profit sharing accrual in view of lower earnings
contributed to the nine-month decline.
Research and development expenditures remained constant
for the quarter and nine months ended April 30, 1995. The
Company remains focused on development efforts related
to its new generation auto-injector products designed
for outpatient/in-home use. These products target
infrequent injection of medication in acute episodes of
<PAGE> 13
SURVIVAL TECHNOLOGY, INC.
FORM 10-Q
For the Quarter ended April 30, 1995
ITEM 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (continued)
disease as well as treatment of chronically ill patients.
The Company expects R&D expenses in fiscal 1995 to be
comparable to fiscal 1994.
Depreciation and amortization increased $115,700 (37%)
and $107,800 (10%) in the current quarter and first nine
months of fiscal 1995 compared with the corresponding prior
year periods. The Company continues to invest signifi-
cantly in capital expenditures (see "Balance Sheet
Review") and expects depreciation expense for the current
fiscal year to increase over prior year levels. There
will be a continuation of equipment being placed in
service from the third to the fourth quarter of fiscal 1995.
Other expenses, net of other income, increased $21,300 in
the current quarter and $109,000 in the first nine months
of fiscal 1995 when compared with the same prior year
periods. This resulted from increases in interest expense
of $62,500 and $151,500 for the quarter and nine months
ended April 30, 1995 due to higher levels of bank
borrowings as well as the re-initiation of interest
payments on the outstanding note payable to Syntex
Laboratories, Inc. ("see Liquidity and Capital Resources"
following). Also contributing to the current year
increase in other expenses was the absence of a gain
on fixed asset disposals ($63,500) recognized in fiscal
1994. These increases were partially offset by royalty
income of $30,900 for the quarter and $87,400 for the
nine-months ended April 30, 1995 resulting from the sale
of the Medical Device Division to Brunswick Biomedical
Corporation on July 31, 1994.
LIQUIDITY AND CAPITAL RESOURCES
In October 1994, the Company renewed its $5 million line
of credit agreement ("Agreement") with Merrill Lynch
Business Financial Services Inc. ("MLBFS") through
September 1995. Outstanding borrowings under the
Agreement aggregated $4.8 million at April 30, 1995.
The interest rate is the 30-day commercial paper rate
as published in the Wall Street Journal plus 265 basis
points. The Agreement places a $5 million limit on
capital expenditures in any one fiscal year.
<PAGE> 14
SURVIVAL TECHNOLOGY, INC.
FORM 10-Q
For the Quarter ended April 30, 1995
ITEM 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (continued)
Capital expenditures aggregated $2.8 million for the nine
months ended April 30, 1995. The Company relies on its
line of credit facility to satisfy its working capital
and capital expenditure requirements.
The Company will have significant capital needs over
the next five years which will need to be funded
externally. Its manufacturing facility currently
consists of eight separate buildings. The Company
plans to consolidate operations which will result in
the elimination of several manufacturing buildings and
significantly reduce manufacturing costs. Many of
the Company's aseptic filling, assembly and final
packaging processes are labor intensive and in need of
automation. Over the next several years, the Company
plans to purchase high speed drug cartridge preparation
and filling equipment as well as automated assembly and
packaging equipment. This equipment will not only
increase efficiency and capacity, but it will also result
in less human contact with products during the
manufacturing process. Finally, as part of STI's
new product development efforts, the Company must
purchase high cavitation molds for its new automatic
injection devices.
On May 23, 1995, the Company entered into a loan agreement
with The CIT Group/Equipment Financing, Inc. to assist
in financing the capital investment program mentioned
above which should improve profit margins. This
arrangement will consist of a series of loans for the
acquisition of production molds, high speed component
preparation and filling equipment and facility
renovations not to exceed a maximum aggregate of
$3 million. Additional terms include repayment of
each loan in sixty (60) equal monthly installments at
an interest rate equal to the Treasury Yield (as
published in the Wall Street Journal two business
days prior to closing on a loan amount) plus 247
basis points.
The Company will continue to seek additional intermediate
to long-term financing alternatives to underwrite the
capital expenditures needed to keep pace with its long-
range business plan. Proceeds from the CIT loan agreement
<PAGE> 15
SURVIVAL TECHNOLOGY, INC.
FORM 10-Q
For the Quarter ended April 30, 1995
ITEM 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (continued)
coupled with improving operating results in the fourth
quarter are expected to improve the Company's liquidity
position.
In April 1991, the Company signed a Loan Agreement
pursuant to which Syntex Laboratories, Inc. agreed to
lend $5.4 million to the Company to finance working
capital requirements and capital expenditures designed
to increase the production capacity of the Company's
Cartrix (TM) syringe system. Effective January 1,
1993, the outstanding loan balance (approximately
$2.2 million) had a moratorium on principal repayments
and was non-interest bearing through June 30, 1994.
Effective July 1, 1994, the outstanding loan balance
began to bear interest at the same rate of interest the
Company pays on its current commercial line of credit
facility. Principal repayments resumed for the calendar
quarter ended September 30, 1994 at the minimum of
$200,000 per quarter reducing the outstanding loan
balance to $1.6 million at April 30, 1995. The loan is
subject to acceleration upon the occurrence of certain
events.
BALANCE SHEET REVIEW
Working capital at April 30, 1995 was $2.7 million which
represents a $2.3 million (46%) decrease from working
capital of $5 million at July 31, 1994. This decrease
was the result of higher bank borrowings and lower
accounts receivable at the end of the current quarter
which were partially offset by higher levels of
inventory. Receivables decreased $858,500 (14%) due to
lower sales of CytoGuard. Inventories increased
$2.1 million (75%) primarily in support of military
auto-injector orders for the U.S. DoD and foreign
allied government as well as increased orders for the
EpiPen, all scheduled for delivery in the fourth
quarter of fiscal 1995. Also contributing to these
increased inventory levels were component purchases in
anticipation of new product launches, which include the
EpiE-ZPen and the Diazepam auto-injectors. Both of
these new products are pending final approval by the
<PAGE> 16
SURVIVAL TECHNOLOGY, INC.
FORM 10-Q
For the Quarter ended April 30, 1995
ITEM 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (continued)
FDA. Prepaid expenses and other current assets
increased $76,500 (13%) due primarily to the prepayment
of annual FDA user fees during the second quarter of
the current fiscal year.
Notes payable increased $2.9 million (83%) to fund
inventory purchases and capital expenditures.
Accounts payable increased $544,100 (48%) in conjunction
with increased levels of inventory discussed above.
Other liabilities and accrued expenses decreased
$262,600 (17%) due primarily to the payment of various
taxes and employee benefits previously accrued for at
July 31, 1994. Other long-term debt, including the
current portion, decreased $62,600 (11%) as the Company
continued to make payments on its non-interest bearing
note payable to EM Industries, Inc. as well as payments
on capital lease obligations incurred to finance the
Company's fully integrated management information system.
Capital expenditures totalled $2.8 million during the
first nine months of fiscal 1995 which consisted primarily
of improvements designed to automate and validate current
production processes at the Company's St. Louis
manufacturing facility.
PART II - OTHER INFORMATION
ITEM 6. Exhibits and Reports on Form 8-K:
a. Reports on Form 8-K:
There are no reports on Form 8-K filed by the
Registrant during the three months ended
April 30, 1995.
<PAGE> 17
SURVIVAL TECHNOLOGY, INC.
FORM 10-Q
For the Quarter ended April 30, 1995
SIGNATURES
Pursuant to the requirement of the Securities
Exchange Act of 1934, the registrant has duly cause
this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SURVIVAL TECHNOLOGY, INC.
Registrant
June 14, 1995 By: /S/James H. Miller
- ------------- -------------------------
Date James H. Miller
President and
Chief Executive Officer
(Principal Executive
Officer)
June 14, 1995 By: /S/Jeffrey W. Church
- ------------- ------------------------
Date Jeffrey W. Church
Sr. Vice President-Finance
and Chief Financial Officer
(Principal Financial and
Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<FISCAL-YEAR-END> Jul-31-1994
<PERIOD-START> Aug-01-1994
<PERIOD-END> Apr-30-1995
<PERIOD-TYPE> 9-MOS
<CASH> 271,300
<SECURITIES> 0
<RECEIVABLES> 5,077,800
<ALLOWANCES> 22,300
<INVENTORY> 4,890,200
<CURRENT-ASSETS> 11,745,900
<PP&E> 23,611,600
<DEPRECIATION> 9,886,500
<TOTAL-ASSETS> 27,553,100
<CURRENT-LIABILITIES> 9,056,900
<BONDS> 0
0
0
<COMMON> 308,500
<OTHER-SE> 15,584,500
<TOTAL-LIABILITY-AND-EQUITY> 27,553,100
<SALES> 17,004,100
<TOTAL-REVENUES> 17,004,100
<CGS> 11,580,000
<TOTAL-COSTS> 16,568,900
<OTHER-EXPENSES> (146,000)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 264,000
<INCOME-PRETAX> 317,200
<INCOME-TAX> 114,200
<INCOME-CONTINUING> 203,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 203,000
<EPS-PRIMARY> .07
<EPS-DILUTED> .07
</TABLE>
