<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended December 27, 1997 Commission File No. 0-1915
THOMASTON MILLS, INC.
- --------------------------------------------------------------------------------
GEORGIA 58-0460470
- ------------------------------------ ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
115 East Main Street, P.O. Box 311, Thomaston, Georgia 30286
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (706) 647-7131.
---------------
Indicate the number of shares outstanding of each of the issuer's classes of
Common Stock, as of the close of the period covered by this report.
Class A Common Stock $1 Par Value - 5,620,518 Shares including
710,888 Treasury Shares
Class B Common Stock $1 Par Value - 1,873,506 Shares including
243,140 Treasury Shares
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 for
the past 90 days.
Yes X No
----- -----
<PAGE> 2
INDEX
THOMASTON MILLS, INC. AND SUBSIDIARY
PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Condensed consolidated balance sheets -- December 27, 1997 and
June 28, 1997
Condensed consolidated statements of operations -- three months
ended December 27, 1997 and three months ended December 28, 1996
and six months ended December 27, 1997 and six months ended
December 28, 1996.
Condensed consolidated statements of cash flows -- six months
ended December 27, 1997 and six months ended December 28, 1996.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Item 2. Change in Securities
Item 3. Defaults upon Senior Securities
Item 4. Submission of Matters to a vote of Security Holders
Item 5. Other information
Item 6. Exhibits and Reports on Form 8-K
SIGNATURES
<PAGE> 3
PART 1 - FINANCIAL INFORMATION
THOMASTON MILLS, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
<TABLE>
<CAPTION>
DEC. 27, 1997 JUNE 28, 1997
------------- -------------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash & cash equivalents $ 1,369 $ 1,886
Accounts receivable, less allowance of $500 39,182 50,140
Inventories--Note B 57,938 48,729
Refundable income taxes 2,278 2,898
Other current assets 2,904 2,097
-------- --------
TOTAL CURRENT ASSETS 103,671 105,750
PROPERTY, PLANT AND EQUIPMENT 250,896 247,506
Less allowances for depreciation 163,645 158,133
-------- --------
87,251 89,373
OTHER ASSETS 2,383 2,574
-------- --------
$193,305 $197,697
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 8,967 $ 16,060
Accrued liabilities 8,331 8,529
Current portion of long-term debt
and capital lease obligations 2,999 3,034
-------- --------
TOTAL CURRENT LIABILITIES 20,297 27,623
OBLIGATIONS UNDER CAPITAL LEASE -
LESS CURRENT PORTION 1,529 1,100
LONG-TERM DEBT 68,659 62,917
DEFERRED INCOME TAXES 5,758 5,757
OTHER LIABILITIES 1,019 839
SHAREHOLDERS' EQUITY
Class A Common Stock--5,620,518 shares
outstanding including 710,888 treasury shares at
September 28, 1997 and June 28, 1997 5,621 5,621
Class B Common Stock--1,873,506 shares
outstanding including 243,140 treasury shares at
September 28, 1997 and June 28, 1997 1,873 1,873
Additional paid-in capital 8,904 8,904
Retained earnings 85,065 88,483
-------- --------
101,463 104,881
Less treasury stock - at cost 5,420 5,420
-------- --------
96,043 99,461
-------- --------
$193,305 $197,697
======== ========
</TABLE>
NOTE: The Balance Sheet at June 28, 1997 has been
derived from the Audited Financial Statements at that
date. See Notes to Condensed Financial Statements.
<PAGE> 4
THOMASTON MILLS, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Thousands except Share and Per Share Data)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
Dec. 27, 1997 Dec. 28, 1996 Dec. 27, 1997 Dec. 28, 1996
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Net sales $ 68,036 $ 68,172 $ 141,248 $ 137,085
Cost of sales 61,438 63,518 132,743 128,367
----------- ----------- ----------- -----------
6,598 4,654 8,505 8,718
Selling, general
and administrative expenses 4,915 4,913 10,069 10,132
----------- ----------- ----------- -----------
1,683 (259) (1,564) (1,414)
Other income 72 100 175 163
----------- ----------- ----------- -----------
1,755 (159) (1,389) (1,251)
Interest expense 1,215 957 2,542 1,786
----------- ----------- ----------- -----------
Income (loss) before
income taxes 540 (1,116) (3,931) (3,037)
Provision for income taxes
(benefit) 205 (424) (1,494) (1,154)
----------- ----------- ----------- -----------
Net income (loss) $ 335 $ (692) (2,437) (1,883)
=========== =========== =========== ===========
Wgt. Average Number of Shares - Basic 6,539,996 6,539,996 6,539,996 6,539,996
Basic earnings (loss) per share $ 0.0500 $ (0.1100) (0.3700) (0.2900)
Wgt. Average Number of Shares - Diluted 6,551,466 6,539,996 6,539,996 6,539,996
Diluted earnings (loss) per share $ 0.0500 $ (0.1100) $ (0.3700) $ (0.2900)
Dividends paid per share $ 0.0750 $ 0.0750 $ 0.0750 $ 0.0750
</TABLE>
<PAGE> 5
THOMASTON MILLS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
<TABLE>
<CAPTION>
SIX MONTHS ENDED SIX MONTHS ENDED
DECEMBER 27, 1997 DECEMBER 28, 1996
----------------- -----------------
<S> <C> <C>
OPERATING ACTIVITIES
Net income (loss) $ (2,437) $ (1,883)
Adjustments to reconcile net income (loss)
to net cash provided by operating
activities:
Depreciation and amortization 8,494 9,029
Loss on sale of property, plant
and equipment 0 161
Changes in operating assets and
liabilities:
Accounts receivable 10,958 6,023
Inventories (9,209) (6,726)
Other assets 4 (1,221)
Accounts payable and accrued expenses (7,111) (8,112)
-------- --------
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES 699 (2,729)
INVESTING ACTIVITIES
Purchases of property, plant and equipment (6,373) (2,876)
Less capital lease obligations incurred 664 0
-------- --------
Cash for property, plant and equipment (5,709) (2,876)
Proceeds from sales of property, plant
and equipment 2 1
-------- --------
NET CASH USED IN INVESTING
ACTIVITIES (5,707) (2,875)
FINANCING ACTIVITIES
Proceeds from revolving lines of credit
and long-term debt 8,664 29,000
Less capital lease obligations incurred (664) 0
-------- --------
Cash proceeds from borrowings 8,000 29,000
Principal payments on revolving lines of
credit, long-term debt and capital lease
obligations (2,528) (22,550)
Cash dividends paid (981) (981)
-------- --------
NET CASH PROVIDED BY
FINANCING ACTIVITIES 4,491 5,469
-------- --------
DECREASE IN CASH
AND CASH EQUIVALENTS (517) (135)
Cash and cash equivalents at beginning
of period 1,886 2,077
-------- --------
Cash and cash equivalents at end
of period $ 1,369 $ 1,942
======== ========
</TABLE>
<PAGE> 6
THOMASTON MILLS, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 27, 1997
NOTE A -- BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Rule 10-01 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the three month period ended December 27,
1997 are not necessarily indicative of the results that may be expected for the
year ending June 27, 1998. Certain Fiscal 1997 balances have been reclassified
to conform with the Fiscal 1998 classifications. For further information, refer
to the consolidated financial statements and footnotes thereto included in the
Company's annual report for the year ended June 28, 1997.
NOTE B -- INVENTORIES
The components of inventory consist of the following:
<TABLE>
<CAPTION>
(Dollars in Thousands)
DECEMBER 27, 1997 June 28, 1997
----------------- -------------
<S> <C> <C>
Raw materials $ 8,709 $ 9,197
Work in process 33,290 32,012
Finished products 31,161 22,742
LIFO reserve (15,222) (15,222)
-------- --------
$ 57,938 $ 48,729
======== ========
</TABLE>
<PAGE> 7
NOTE C -- NET INCOME (LOSS) PER COMMON SHARE
The Company adopted Statement of Financial Accounting Standards ("SFAS") No. 128
"Earnings per Share" in its second quarter ended on December 27, 1997. SFAS No.
128 replaced the previously reported primary and fully diluted earnings per
share with basic and diluted earnings per share. Unlike primary earnings per
share, basic earnings per share excludes any dilutive effects of options,
warrants and convertible securities. Diluted earnings per share is very similar
to the previously reported fully diluted earnings per share. All earnings per
share amounts for all periods have been presented and where necessary, restated
to conform to SFAS No. 128 requirements.
The following table sets forth the computation of the numerator and denominator
used in the calculation of basic and diluted earnings per share:
<TABLE>
<CAPTION>
(Dollars in Thousands except Share and Per Share Date)
Three Months Ended Six Months Ended
Dec. 27, 1997 Dec. 28, 1996 Dec. 27, 1997 Dec. 28, 1996
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Numerator:
Net income (loss) from continuing operations $ 335 $ (692) $ (2,437) $ (1,883)
----------- ----------- ----------- -----------
Numerator for basic and diluted earnings per share $ 335 $ (692) $ (2,437) $ (1,883)
----------- ----------- ----------- -----------
Denominator:
Denominator for basic earnings per share -
Weighted average shares 6,539,996 6,539,996 6,539,996 6,539,996
Dilutive effect of potential common shares -
Employee stock options 11,470 N/A N/A N/A
----------- ----------- ----------- -----------
Denominator for diluted earnings per share -
adjusted weighted-average shares and
assumed conversions 6,551,466 6,539,996 6,539,996 6,539,996
----------- ----------- ----------- -----------
Basic earnings per share $ 0.0500 $ (0.1100) $ (0.3700) $ (0.2900)
----------- ----------- ----------- -----------
Diluted earnings per share $ 0.0500 $ (0.1100) $ (0.3700) $ (0.2900)
----------- ----------- ----------- -----------
Potentially dilutive common shares related to
options outstanding:
Not considered in calculation due to net loss N/A 7,583 6,607 6,725
----------- ----------- ----------- -----------
Not considered in calculation due to average
price of Company's common stock exceeding
exercise price of options 605,669 538,000 632,326 538,000
----------- ----------- ----------- -----------
</TABLE>
<PAGE> 8
THOMASTON MILLS, INC. AND SUBSIDIARY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
RESULTS OF OPERATIONS
Sales of $68,036,000 for the second quarter ended December 27, 1997 were down
slightly from sales of $68,172,000 for the second quarter last year. Sales of
$141,248,000 for the six months ended December 27, 1997 were up 3% over sales of
$137,085,000 for the comparable six months last year. Although the sales mix for
the second quarter fiscal year 1998 reflected more profitable margins, this
improvement in margins was offset by decreased volume during the quarter.
Cost of sales for the quarter just ended decreased to $61,438,000 or 90.3% of
sales. For the second quarter fiscal year 1997, cost of goods sold were
$63,518,000 or 93.2% of sales. For the first six months of fiscal years 1998 and
1997, cost of goods sold as a percentage of sales was 94.0% and 93.6%,
respectively. Raw material cost decreases in the second quarter and first six
months of fiscal year 1998 continue to be offset by high fixed costs per unit
due to low capacity utilization of the Company's manufacturing facilities.
Gross profit for the second quarter fiscal year 1998 increased $1,944,000 to
9.7% of sales as compared to gross profit of 6.8% of sales for the second
quarter last year. For the first six months of this fiscal year, the Company
generated gross profit of 6.0% of sales. For the first six months of last fiscal
year, gross profit was 6.4% of sales.
Selling, general and administrative expenses were 7.2% of sales for the second
quarter this year and last year. For the six months ended December 27, 1997,
selling, general and administrative expenses were 7.1% of sales as compared to
7.4% of sales for the six months ended December 28, 1996. The Company strives to
maintain selling, general and administrative expenses at a low percentage of
sales ratio.
Other income during second quarter fiscal year 1998 was $72,000 and $100,000 for
fiscal year 1997 second quarter. Other income relates to miscellaneous equipment
sales and interest earned on the Company's short-term investments of cash.
Interest expense increased $258,000 from $957,0000 in second quarter fiscal year
1997 to $1,215,000 in second quarter fiscal year 1998. For the first six months
of fiscal year 1998, interest expense was $2,542,000 as compared to $1,786,000
for the first six months of fiscal year 1997. This increase was the result of
increased borrowings under the Company's various credit agreements.
Income tax expense (benefit) for the second quarter and first six months of
fiscal years 1998 and 1997 was 38% of taxable income (loss), which approximates
the statutory income tax rate for the tax jurisdictions in which the Company
operates.
For the second quarter fiscal year 1998, the Company generated net income of
$335,000 or $.05 per share as compared to a second quarter fiscal year 1997 net
loss of $692,000 or $.11 per share. For the six months ended December 27, 1997,
the Company sustained a loss of
<PAGE> 9
$2,437,000 or $.37 per share as compared to a net loss of $1,883,000 or $.29 per
share for the six months ended December 28, 1996.
LIQUIDITY AND CAPITAL RESOURCES
The Company continues to maintain a strong financial position. At December 27,
1997, working capital was $83,374,000 as compared to $80,990,000 at December
28,1996. The ratio of current assets to current liabilities was 5.11:1 at
December 27, 1997 and 5.62:1 at December 28, 1996.
Financing activities provided cash flow of $4,491,000 during the six months
ended December 27, 1997. The primary use of funds was $5,709,000 in purchases of
property, plant and equipment. Operating activities used funds of $699,000.
During first quarter fiscal year 1997, the Company completed the financing for
an expansion of the Lakeside Comforter Plan and an addition of a new dye range.
This project began in the fourth quarter of fiscal year 1996. Financing was
provided with $18,000,000 in taxable Industrial Revenue Bonds issued through the
Thomaston-Upson County Industrial Development Authority. These bonds will be
retired over a fifteen year period with only interest payable for the first
three years. Proceeds from the sale of the bonds were applied to the Company's
revolving credit facility until needed for the project.
During the fourth quarter of fiscal year 1997, the Company revised and expanded
its revolving credit agreement with a group of banks to provide for unsecured
borrowings of up to $39,000,000. At December 27, 1997, $4,000,000 was unborrowed
and available under this agreement.
INVENTORIES
Inventories at December 27, 1997 and December 28, 1996 were $57,938,000 and
$49,436,000, respectively. Total inventory turns on an average annualized rate
were 4.6 times for the first six months of fiscal year 1998 and 5.2 times for
the first six months of fiscal year 1997.
RAW MATERIALS
The Company's primary raw material is cotton. As a commodity, cotton is traded
on established markets and periodically experiences price fluctuations. The
Company monitors the cotton market and buys its cotton from brokers. The Company
has not had and does not anticipate any material difficulty in obtaining cotton.
In order to assure a continuous supply of cotton, the Company enters into cotton
purchase contracts for several months in advance of delivery which either
provide for (1) fixed quantities to be purchased at a pre-determined price, or
(2) fixed quantities to be purchased at a price to be determined (at a later
date). When the Company sells its product to its customers, the cost of cotton
under existing cotton purchase contracts is taken into account in calculating
the price for the Company's product. The Company generally attempts to match
product sales contracts with fixed price cotton purchase contracts and uses
market price cotton contracts to anticipate future needs and subsequent product
sales contracts. To the extent prices are sometimes fixed in advance of
shipment, the Company may benefit from its cotton purchase contracts to the
extent prices thereafter rise, or incur increased cost to the extent prices
thereafter fall.
<PAGE> 10
GATT
In December 1993, 117 countries reached an agreement under the General Agreement
on Tariffs and Trade that would cover new areas of trade, further cut tariffs
and strengthen multilateral free-trade rules by creating a World Trade
Organization (WTO) as its successor. This agreement was ratified by the United
States Congress and went into effect on July 1, 1995. As part of this new
agreement, the Multifiber Arrangement (MFA) under which textile and apparel
trade had been controlled, will be phased out along with its import quotas over
a ten-year period. Tariffs on textiles will be cut by an average of 11.6% over
ten years. A weighted average tariff for products sold by Thomaston Mills, if
imported, would be cut by 8.8%. Under the agreement, quotas on the least
sensitive import products will be phased out over the first five years and
quotas on the most sensitive import products will not be affected until the
latter part of the ten-year period.
The WTO agreement contains some provisions which may have a favorable impact on
the textile industry. An assembly rule of origin amendment makes it illegal for
a non-WTO member country to assemble garments from pieces cut in a member
country and then export the garments as originating in the country where they
were cut. Additionally, the agreement preserves the authority of the President
of the United States to control imports from non-WTO countries such as Taiwan or
China.
Although the WTO agreement may reduce the cost of certain imported textiles, the
Company believes that upgraded technology resulting in increased productivity
and lower costs will enable it to compete in a global market.
FORWARD-LOOKING STATEMENTS
Certain of the above statements contained herein under the caption "Management's
Discussion and Analysis of Financial Condition and Results of Operations"
constitute "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1996. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievements of the Company to be materially
different from any future results, performance or achievements expressed or
implied by such forward-looking statements. Such factors include, among other
things, business conditions, volatility of commodities markets, ability to
control operating costs, developing successful new products and maintaining
effective pricing and promotion of its products.
<PAGE> 11
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
(a) As of December 27, 1997, there were no material pending
legal proceedings, other than routine litigation incidental
to its business, to which the Company was a party or to
which any property of the Company was subject. Such routine
legal proceedings are not believed to be material to the
Company.
(b) Not applicable
ITEM 2. CHANGE IN SECURITIES
(a) (b) Not applicable.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
(a) (b) Not applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The election of directors, approval of the Company's 1997 Stock
Option Plan and selection of Ernst & Young as the Company's
independent auditors were approved by the holders of the Company's
Class B Common Stock at the Annual Meeting of Shareholders held on
October 2, 1997. Set forth below are the results of the voting:
<TABLE>
<CAPTION>
Votes Votes
For Against Abstentions
----------- --------- -------------
<S> <C> <C> <C>
Election of Directors
Thomas D. Adams, Jr 1,517,138 0 9,295
C. Ronald Barfield 1,517,138 0 9,295
Archie H. Davis 1,517,138 0 9,295
H. Stewart Davis 1,517,138 0 9,295
George H. Hightower 1,517,138 0 9,295
George H. Hightower, Jr 1,517,138 0 9,295
Neil H. Hightower 1,517,138 0 9,295
William H. Hightower, Jr 1,517,138 0 9,295
Rosser R. Raines 1,517,138 0 9,295
Dr. Jerry M. Williamson 1,517,138 0 9,295
Dom H. Wyant 1,517,138 0 9,295
Approval of 1997 Stock Option Plan 1,297,431 57,760 171,242
Selection of Ernst & Young 1,516,633 7,500 3,362
</TABLE>
<PAGE> 12
ITEM 5. OTHER INFORMATION
Not Applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
13.1 Quarterly Report to Shareholders dated
December 27, 1997.
27.0 Financial Data Schedule (for SEC purposes only)
(b) The Company did not file any reports on Form
8-K during the three months ended December 27, 1997.
<PAGE> 13
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.
Thomaston Mills, Inc.
Neil H. Hightower
-------------------
Neil H. Hightower
President and Chief
Date: February 12, 1998 Executive Officer
______________________
Rosser R. Raines
-----------------------------
Rosser R. Raines
Treasurer-Principal Financial
Date: February 12, 1998 Officer
______________________
<PAGE> 1
EXHIBIT 13.1
[THOMASTON MILLS LOGO] NEWS
RELEASE
================================================================================
SECOND QUARTER REPORT
1998
TO THE SHAREHOLDERS:
Thomaston Mills returned to profitability for the second fiscal quarter ended
December 27, 1997. The Company earned $335,000 net after taxes or $.05 per
share for the quarter. Sales were $68,036,000, about even with the second
quarter a year ago. Cost reduction efforts contributed to the improved results.
The Company has made progress, but we still have a long way to go. Capacity
utilization continues to be our biggest challenge. The Company ran close to
capacity in October, but capacity was under utilized in November and December.
Denim pricing has slipped due to an oversupply of the fabric. Some denim
production has been switched to greige twill which can be dyed on the New Dye
Range.
Cotton prices have been inching down, and this should be helpful to the Company
going forward. Several new accounts have been added in the Consumer Products
area, and this will be beneficial when we begin shipping to these new accounts.
The Rattlers Brand Division has been sold to Eugene J. Rutter, Jr. in New
Orleans, Louisiana, and we expect a smooth transition of that business to
occur. Thomaston Mills will retain the Northside Building used for Rattlers
products for future uses.
The management of Thomaston Mills is committed to continued improvement, and we
are still optimistic that fiscal year ending June 1998 will be profitable for
Thomaston Mills.
Sincerely,
/s/ Neil H. Hightower
- ---------------------
Neil H. Hightower
President and CEO
January 20, 1998
THOMASTON MILLS, INC.
POST OFFICE BOX 311
THOMASTON, GEORGIA 30286-0004
<PAGE> 2
THOMASTON MILLS, INC.
CONDENSED STATEMENTS OF OPERATIONS
(Dollars in Thousands except Per share Data)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
DECEMBER 27, December 28, DECEMBER 27, December 28,
1997 1996 1997 1996
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net sales $ 68,036 $ 68,172 $ 141,248 $ 137,085
Cost of sales 61,438 63,518 132,743 128,367
- ------------------------------------------------------------------------------------------------
6,598 4,654 8,505 8,718
Selling, general and
administrative expenses 4,915 4,913 10,069 10,132
Other income (expense)-net 72 100 175 163
- ------------------------------------------------------------------------------------------------
1,755 (159) (1,389) (1,251)
Interest expense 1,215 957 2,542 1,786
- ------------------------------------------------------------------------------------------------
Income (loss) before income taxes 540 (1,116) (3,931) (3,037)
Provision for income taxes (benefit) 205 (424) (1,494) (1,154)
- ------------------------------------------------------------------------------------------------
Net income (loss) $ 335 $ (692) $ (2,437) $ (1,883)
================================================================================================
Average Number of Shares 6,551,466 6,547,579 6,539,996 6,546,744
Basic and diluted earnings
(loss) per share $ 0.0500 $ (0.1100) $ (0.3700) $ (0.2900)
Dividends paid per share $ 0.0750 $ 0.0750 $ 0.1500 $ 0.1500
================================================================================================
</TABLE>
CONDENSED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
<TABLE>
<CAPTION>
DECEMBER 27, December 28,
1997 1996
- -----------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Current Assets
Cash and cash equivalents $ 1,369 $ 1,942
Accounts receivable 39,682 44,800
Less allowance for uncollectible accounts (500) (415)
Inventories 57,938 49,436
Other current assets 5,182 2,743
- -----------------------------------------------------------------------------------
Total Current Assets 103,671 98,506
Property, Plant and Equipment 250,896 236,056
Less allowance for depreciation (163,645) (151,748)
Other assets 2,383 2,120
- -----------------------------------------------------------------------------------
$ 193,305 $ 184,934
===================================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 8,967 $ 7,440
Accrued liabilities 8,331 7,052
Current portion of capital lease obligations 351 376
Current portion of long-term debt 2,648 2,648
- ----------------------------------------------------------------------- -----------
Total Current Liabilities 20,297 17,516
Obligations under capital leases 1,529 1,294
Long-term debt 68,659 52,807
Deferred income taxes 5,758 6,874
Other liabilities 1,019 236
Shareholders' Equity 96,043 106,207
- ----------------------------------------------------------------------- -----------
$ 193,305 $184,934
===================================================================================
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-27-1998
<PERIOD-START> JUN-29-1997
<PERIOD-END> DEC-27-1997
<CASH> 1,369
<SECURITIES> 0
<RECEIVABLES> 39,682
<ALLOWANCES> 500
<INVENTORY> 57,938
<CURRENT-ASSETS> 103,671
<PP&E> 250,896
<DEPRECIATION> 163,645
<TOTAL-ASSETS> 193,305
<CURRENT-LIABILITIES> 20,297
<BONDS> 33,659
0
0
<COMMON> 7,494
<OTHER-SE> 88,549
<TOTAL-LIABILITY-AND-EQUITY> 193,305
<SALES> 68,036
<TOTAL-REVENUES> 68,108
<CGS> 61,438
<TOTAL-COSTS> 61,438
<OTHER-EXPENSES> 4,915
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,215
<INCOME-PRETAX> 540
<INCOME-TAX> 205
<INCOME-CONTINUING> 335
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 335
<EPS-PRIMARY> .05
<EPS-DILUTED> .05
</TABLE>
