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:  September 30, 2006

OR

o                                 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                 to                

Commission file number:  0-23804

Simpson Manufacturing Co., Inc.       

(Exact name of registrant as specified in its charter)

 

5956 W. Las Positas Blvd., Pleasanton, CA 94588

(Address of principal executive offices)

(Registrant’s telephone number, including area code):  (925) 560-9000

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  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act.

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes  oNo  x

The number of shares of the Registrant’s common stock outstanding as of September 30, 2006:         48,170,928

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements.

Simpson Manufacturing Co., Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, unaudited)

		September 30,						December 31,
		2006			2005			2005
ASSETS
Current assets
Cash and cash equivalents		$	104,605		$	104,360		$	131,203
Short-term investments		—			6,303			—
Trade accounts receivable, net		132,946			129,590			101,621
Inventories		229,703			174,783			181,492
Deferred income taxes		11,622			10,160			10,088
Other current assets		5,257			3,598			10,051
Total current assets		484,133			428,794			434,455
Property, plant and equipment, net		190,311			151,724			166,480
Goodwill		44,297			42,901			42,681
Equity method investment		—			222			244
Other noncurrent assets		15,156			16,952			15,855
Total assets		$	733,897		$	640,593		$	659,715
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current portion of long-term debt		$	326		$	545		$	2,186
Trade accounts payable		40,134			41,290			29,485
Accrued liabilities		37,704			30,471			39,076
Income taxes payable		—			3,313			—
Accrued profit sharing trust contributions		6,708			6,013			7,721
Accrued cash profit sharing and commissions		12,213			15,449			10,229
Accrued workers’ compensation		3,312			2,724			3,262
Total current liabilities		100,397			99,805			91,959
Long-term debt, net of current portion		490			1,874			2,928
Other long-term liabilities		1,643			1,352			1,362
Total liabilities		102,530			103,031			96,249
Commitments and contingencies (Note 7)
Minority interest in consolidated variable interest entities		—			—			5,337
Stockholders’ equity
Common stock, at par value		482			482			483
Additional paid-in capital		108,033			89,383			94,398
Retained earnings		511,552			438,773			456,474
Accumulated other comprehensive income		11,300			8,924			6,774
Total stockholders’ equity		631,367			537,562			558,129
Total liabilities and stockholders’ equity		$	733,897		$	640,593		$	659,715

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

2

Simpson Manufacturing Co., Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands except per-share amounts, unaudited)

		Three Months Ended September 30,								Nine Months Ended September 30,
		2006				2005				2006				2005
Net sales		$	226,718				$	233,809		$	683,607				$	642,359
Cost of sales		139,803					140,607			409,259					388,640
Gross profit		86,915					93,202			274,348					253,719
Operating expenses (income):
Research and development and other engineering		4,531					3,519			15,337					10,722
Selling		17,955					15,679			54,105					47,057
General and administrative		22,468					27,282			72,143					76,995
Loss (gain) on sale of assets		(3			)		(2,027		)	110					(2,124		)
		44,951					44,453			141,695					132,650
Income from operations		41,964					48,749			132,653					121,069
Income (loss) in equity method investment, before tax		(1			)		54			(130			)		222
Interest income, net		831					373			2,610					595
Income before income taxes		42,794					49,176			135,133					121,886
Provision for income taxes		15,704					17,569			51,151					45,057
Minority interest		—					—			166					—
Net income		$	27,090				$	31,607		$	83,816				$	76,829
Net income per common share
Basic		$	0.56				$	0.66		$	1.74				$	1.60
Diluted		$	0.56				$	0.65		$	1.71				$	1.58
Cash dividends declared per common share		$	0.08				$	0.05		$	0.24				$	0.15
Number of shares outstanding
Basic		48,120					48,091			48,295					48,024
Diluted		48,587					48,658			48,935					48,532

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

Simpson Manufacturing Co., Inc. and Subsidiaries
Condensed Consolidated Statements of Stockholders’ Equity
for the nine months ended September 30, 2005 and 2006 and the three months ended December 31, 2005
(In thousands except per-share amounts, unaudited)

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

Simpson Manufacturing Co., Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands, unaudited)

		Nine Months Ended September 30,
		2006			2005
Cash flows from operating activities
Net income		$	83,816		$	76,829
Adjustments to reconcile net income to net cash  provided by (used in) operating activities:
Loss (gain) on sale of assets		110			(2,124		)
Depreciation and amortization		19,100			17,850
Deferred income taxes		(2,610		)	(3,794		)
Noncash compensation related to stock plans		5,708			4,798
Loss (income) in equity method investment		130			(222		)
Tax benefit of options exercised		—			1,976
Excess tax benefit of options exercised		(2,048		)	—
Provision for obsolete inventory		188			808
Provision for (recovery of) doubtful accounts		277			(143		)
Minority interest		166			—
Changes in operating assets and liabilities, net of  effects of acquisitions:
Trade accounts receivable		(30,153		)	(41,221		)
Inventories		(46,604		)	15,697
Trade accounts payable		6,430			7,340
Income taxes payable		4,843			8,493
Accrued profit sharing trust contributions		(1,053		)	(1,006		)
Accrued cash profit sharing and commissions		1,969			7,250
Other current assets		(1,672		)	(667		)
Accrued liabilities		1,893			4,015
Other long-term liabilities		410			(97		)
Accrued workers’ compensation		50			(36		)
Other noncurrent assets		(9		)	(245		)
Net cash provided by operating activities		40,941			95,501
Cash flows from investing activities
Capital expenditures		(36,934		)	(31,074		)
Acquisition of minority interest		(9,135		)	—
Proceeds from sale of capital assets		79			4,025
Distributions from equity investment		114			—
Maturities of available-for-sale investments		—			7,000
Sales of available-for-sale investments		—			3,500
Net cash used in investing activities		(45,876		)	(16,549		)
Cash flows from financing activities
Line of credit borrowings		712			724
Repayment of debt and line of credit borrowings		(1,413		)	(1,047		)
Repurchase of common stock		(17,166		)	—
Issuance of Company’s common stock		5,435			2,412
Excess tax benefit of options exercised		2,048			—
Dividends paid		(11,591		)	(7,198		)
Net cash used in financing activities		(21,975		)	(5,109		)
Effect of exchange rate changes on cash		312			(400		)
Net increase (decrease) in cash and cash equivalents		(26,598		)	73,443
Cash and cash equivalents at beginning of period		131,203			30,917
Cash and cash equivalents at end of period		$	104,605		$	104,360
Noncash activity during the period
Noncash capital expenditures		$	3,425		$	2,376
Dividends declared but not paid		$	3,820		$	2,410
Issuance of Company’s common stock for compensation		$	229		$	707

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

Simpson Manufacturing Co., Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

(Unaudited)

1. Basis of Presentation

Principles of Consolidation

The consolidated financial statements include the accounts of Simpson Manufacturing Co., Inc. and its subsidiaries (the “Company”). Investments in 50% or less owned affiliates are generally accounted for using either cost or the equity method. The Company consolidates all variable interest entities where it is the primary beneficiary. All significant intercompany transactions have been eliminated.

Interim Period Reporting

The accompanying unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain information and footnotes required by accounting principles generally accepted in the United States of America have been condensed or omitted. These interim statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s 2005 Annual Report on Form 10-K (the “2005 Annual Report”).

The unaudited quarterly condensed consolidated financial statements have been prepared on the same basis as the audited annual consolidated financial statements and, in the opinion of management, contain all adjustments (consisting of only normal recurring adjustments) necessary to state fairly the financial information set forth therein, in accordance with accounting principles generally accepted in the United States of America. The year-end condensed consolidated balance sheet data were derived from audited financial statements, but do not include all disclosures required by accounting principles generally accepted in the United States of America. The Company’s quarterly results fluctuate. As a result, the Company believes the results of operations for the interim periods are not necessarily indicative of the results to be expected for any future period.

Revenue Recognition

The Company recognizes revenue when the earnings process is complete, net of applicable provision for discounts, returns and incentives, whether actual or estimated based on the Company’s experience. This generally occurs when products are shipped to the customer in accordance with the sales agreement or purchase order, ownership and risk of loss pass to the customer, collectibility is reasonably assured and pricing is fixed or determinable. The Company’s general shipping terms are F.O.B. shipping point, where title is transferred and revenue is recognized when the products are shipped to customers. When the Company sells F.O.B. destination point, title is transferred and the Company recognizes revenue on delivery or customer acceptance, depending on terms of the sales agreement. Service sales, representing aftermarket repair and maintenance and engineering activities, though significantly less than 1% of net sales and not material to the consolidated financial statements, are recognized as the services are completed. If the actual costs of sales returns, incentives, and discounts were to significantly exceed the recorded estimated allowance, the Company’s sales would be adversely affected.

Net Income Per Common Share

Basic net income per common share is computed based on the weighted average number of common shares outstanding. Potentially dilutive securities, using the treasury stock method, are included in the diluted per-share calculations for all periods when the effect of their inclusion is dilutive.

6

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The following is a reconciliation of basic net income (earnings) per share (“EPS”), to diluted EPS:

(inthousands, except per-share amounts)		Three Months Ended, September 30, 2006								Three Months Ended, September 30, 2005
		Income			Shares		Per Share			Income			Shares		Per Share
Basic EPS
Income available to common stockholders		$	27,090		48,120		$	0.56		$	31,607		48,091		$	0.66
Effect of Dilutive Securities
Stock options		—			467		—			—			567		(0.01		)
Diluted EPS
Income available to common stockholders		$	27,090		48,587		$	0.56		$	31,607		48,658		$	0.65

 

		Nine Months Ended September 30, 2006								Nine Months Ended, September 30, 2005
		Income			Shares		Per Share			Income			Shares		Per Share
Basic EPS
Income available to common stockholders		$	83,816		48,295		$	1.74		$	76,829		48,024		$	1.60
Effect of Dilutive Securities
Stock options		—			640		(0.03		)	—			508		(0.02		)
Diluted EPS
Income available to common stockholders		$	83,816		48,935		$	1.71		$	76,829		48,532		$	1.58

 

Anti-dilutive shares attributable to outstanding stock options were excluded from the calculation of diluted net income per share. For the three months ended September 30, 2006 and 2005, 989 thousand and 512 thousand shares subject to stock options were anti-dilutive, respectively. For the nine months ended September 30, 2006 and 2005, 989 thousand and 896 thousand shares subject to stock options were anti-dilutive, respectively.

Accounting for Stock-Based Compensation

The Company maintains two stock option plans under which it may grant incentive stock options and non-qualified stock options, though the Company has granted only non-qualified stock options under these plans. The Simpson Manufacturing Co., Inc. 1994 Stock Option Plan (the “1994 Plan”) is principally for the Company’s employees and the Simpson Manufacturing Co., Inc. 1995 Independent Director Stock Option Plan (the “1995 Plan”) is for its independent directors. The Company generally grants options under each of the 1994 Plan and the 1995 Plan once each year. The exercise price per share under each option granted in January 2006 under the 1994 Plan equaled or exceeded the closing market price per share of the Company’s Common Stock as reported by the New York Stock Exchange for the date when the Company first publicly announced its financial results for 2005. In prior years, stock options were granted under the 1994 Plan with the exercise price equal to or in excess of the closing market price per share of the Company’s Common Stock as reported by the New York Stock Exchange on the last trading day of the preceding year. The exercise price per share under each option granted under the 1995 Plan is at the fair market value on the date specified in the 1995 Plan. Options vest and expire according to terms established at the grant date.

Under the 1994 Plan, no more than 16 million shares of the Company’s common stock may be sold (including shares already sold) pursuant to all options granted under the 1994 Plan. Under the 1995 Plan, no more than 320 thousand

7

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shares of common stock may be sold (including shares already sold) pursuant to all options granted under the 1995 Plan. Options granted under the 1994 Plan typically vest evenly over the requisite service period of four years and have a term of seven years. The vesting of options granted under the 1994 Plan will be accelerated if there is a change in control of the Company. Options granted under the 1995 Plan are fully vested on the date of grant.

As of January 1, 2006, the Company adopted Statement of Financial Accounting Standards (“SFAS”) No. 123R, “Share Based Payment (Revised 2004),” using the modified prospective application approach as the transition method. Prior periods are not restated under this method. The cash flow presentation changed whereby cash inflow from excess tax benefits from the exercise of stock options are presented in the consolidated statements of cash flows as a financing activity, where applicable, rather than as an operating activity, as previously presented. Prior to the adoption of SFAS 123R and since January 1, 2003, when the Company adopted SFAS No. 148, “Accounting for Stock-Based Compensation — Transition and Disclosure,” and SFAS No. 123, “Accounting for Stock Based Compensation,” the Company accounted for stock options on a fair value basis and used the prospective method of applying SFAS No. 123 for the transition. As of January 1, 2006, the Company had no unvested options which were accounted for using the intrinsic value method prescribed in Accounting Principles Board (“APB”) Opinion No. 25, “Accounting for Stock Issued to Employees,” and related interpretations.

The following table represents the Company’s stock option activity for the three and nine months ended September 30, 2006 and 2005:

(in thousands)		Three Months Ended September 30,						Nine Months Ended September 30,
		2006			2005			2006			2005
Stock option expense recognized in operating expenses		$	1,887		$	1,404		$	5,442		$	4,414
Tax benefit of stock option expense in provision for income taxes		692			501			2,063			1,633
Stock option expense, net of tax		$	1,195		$	903		$	3,379		$	2,781
Fair value of shares vested		$	1,846		$	1,404		$	5,681		$	4,414
Proceeds to the Company from the exercise of stock options		$	869		$	1,534		$	5,435		$	2,412
Excess tax benefit from exercise of stock options		$	289		$	1,527		$	2,294		$	1,976

 

		At September 30,
		2006			2005
Stock option cost capitalized in inventory		$	239		$	—

 

The amounts included in cost of sales, selling, or general and administrative expenses depend on the job functions performed by the employees to whom the stock options were granted. Shares of common stock issued on exercise of stock options under the plans are registered under the Securities Act of 1933.

The adoption of SFAS No. 123R had no material effect on the Company’s income from continuing operations, income before tax, net income, or net income per share. The adoption of SFAS No. 123R resulted in $2.0 million in additional cash flows from financing activities for the nine months ended September 30, 2006, which previously would have been reported as cash flows from operating activities under SFAS No. 123.

8

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Had compensation cost for the Company’s stock options for all grants prior to January 1, 2003, been recognized based on the estimated fair value on the grant date under the fair value methodology prescribed by SFAS No. 123, as amended by SFAS No. 148, the Company’s net income and net income per share would have been as follows:

(in thousands, except per-share amounts)		Three Months Ended September 30,			Nine Months Ended September 30,
		2005			2005
Net income, as reported		$	31,607		$	76,829
Add:  Stock-based employee compensation expense included in reported net income, net of related tax effects		903			2,781
Deduct:  Total stock-based employee compensation expense determined under the fair value method for all awards granted prior to January 1, 2003, net of related tax effects		910			2,803
Net income, pro forma		$	31,600		76,807
Net income per share
Basic, as reported		$	0.66		$	1.60
Basic, pro forma		0.66			1.60
Diluted, as reported		0.65			1.58
Diluted, pro forma		0.65			1.58

 

The assumptions used to calculate the fair value of options granted are evaluated and revised, as necessary, to reflect market conditions and the Company’s experience.

Under the 1994 Stock Option plan, the Company allows for full vesting on retirement if the employee becomes “retirement-eligible” by reaching age sixty. Prior to the adoption of SFAS 123R, stock-based employee compensation expense was recorded over the nominal vesting period and if a retirement-eligible employee retired before the end of the vesting period, the Company recorded unrecognized compensation cost at the date of retirement (the “nominal vesting period approach”). The nominal vesting period is four years of service subsequent to the grant date. The “non-substantive vesting period approach” specifies that awards, in substance, become vested when the employee’s retention of the award is no longer contingent on providing service. Under this approach, the unrecorded compensation cost is expensed when that condition is met even if the employee continues providing service to the Company. This would be the case for existing grants when an employee becomes retirement-eligible, as well as when a retirement-eligible employee is granted an award. With the adoption of SFAS No. 123R on January 1, 2006, the Company adopted the non-substantive vesting period approach for new grants that have retirement eligibility provisions. The accounting treatment of options granted to retirement-eligible employees prior to the Company’s adoption of SFAS 123R has not changed and financial statements for periods prior to adoption have not been restated for the effects of adopting SFAS 123R. Therefore, the expense recorded in 2006 comprises stock options that vest under both the non-substantive vesting period approach and the nominal vesting period approach. In contrast, the 2005 expense was calculated using the nominal vesting period approach. The effect on net income of applying the nominal vesting period approach versus the non-substantive vesting period approach was not material to the Company’s results of operations for the three and nine months ended September 30, 2006 and 2005.

Recently Issued Accounting Standards

In June 2006, the Financial Accounting Standards Board (“FASB”) issued FASB Interpretation 48 (“FIN 48”), “Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109.” FIN 48 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This interpretation also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. FIN 48 will be

9

effective for fiscal years beginning after December 15, 2006. Management has not yet determined the effect, if any, on the Company’s financial statements for its fiscal year ending December 31, 2007.

In March 2006, the Emerging Issues Task Force (EITF) issued EITF 06-3 ”How Taxes Collected from Customers and Remitted to Governmental Authorities Should Be Presented in the Income Statement (That Is, Gross versus Net Presentation).” The Task Force agreed that a company should disclose its accounting policy regarding the gross or net presentation of certain taxes. If taxes included in gross revenues are significant, a company should disclose the amount of such taxes for each annual or interim period for which an income statement is presented. Taxes within the scope of EITF 06-3 are those that are imposed on and concurrent with a specific revenue-producing transaction. Taxes assessed on an entity’s activities over a period of time, such as income taxes or gross receipts taxes, are not within the scope of EITF 06-3. EITF 06-3 will be effective for periods beginning after December 15, 2006. Management estimates that the effect on the Company’s financial statements for its fiscal year ending December 31, 2007, or for any quarter of that year will be immaterial.

In September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements.” SFAS No. 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. SFAS No. 157 will be effective for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. Management has not yet determined the effect, if any, on the Company’s financial statements for its fiscal year ending December 31, 2008, or its fiscal quarters within that year. SFAS No. 157 will be applied prospectively as of the beginning of the fiscal year in which it is initially applied.

In September 2006, the Securities and Exchange Commission (“SEC”) issued Staff Accounting Bulletin No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements” (“SAB 108”). SAB 108 expresses the SEC’s views regarding the process of quantifying financial statement misstatements. The interpretations in SAB 108 were issued to address diversity in practice in quantifying financial statement misstatements and the potential under current practice for the build-up of improper amounts on the balance sheet. This statement is effective for the Company’s annual financial statements starting this year. Management continues to evaluate SAB 108 and its effect on the Company’s consolidated financial statements and results of operations. Based on current information, management does not believe that the effect will be material.

Revision in Classification

Historically, the Company has reported research and development and other engineering expenses as a component of cost of sales because of the integration of these departments within the manufacturing environment. On analysis of the current production environment, the Company has determined that it is more appropriate to report these amounts as operating expenses. The Company has elected to make this change to the condensed consolidated statement of operations beginning with the first quarter of 2006. Management has concluded that the effect of this revision in classification for the three and nine months ended September 30, 2005, which was an increase in gross profit of $3.5 million and $10.7 million, respectively, was immaterial. The revision in classification had no effect on the Company’s consolidated income from operations, net income, net income per share, cash flows, or any balance sheet item for any period. The Company believes this change enhances the transparency of its financial statements and is appropriate given the organizational changes that have occurred as the Company has grown.

2. Trade Accounts Receivable, net

Trade accounts receivable consist of the following:

(in thousands)		At September 30,						At December 31,
		2006			2005			2005
Trade accounts receivable		$	137,917		$	133,799		$	105,940
Allowance for doubtful accounts		(2,312		)	(2,196		)	(2,131		)
Allowance for sales discounts and returns		(2,659		)	(2,013		)	(2,188		)
		$	132,946		$	129,590		$	101,621

 

10

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3. Inventories

Inventories consist of the following:

(in thousands)			At September 30,									At December 31,
			2006				2005					2005
Raw materials			$	102,288				$	63,740				$	65,163
In-process products			26,639					25,221					30,207
Finished products			100,776					85,822					86,122
			$	229,703				$	174,783				$	181,492

 

4. Property, Plant and Equipment, net

Property, plant and equipment, net, consists of the following:

(in thousands)		At September 30,						At December 31,
		2006			2005			2005
Land		$	22,786		$	18,451		$	21,720
Buildings and site improvements		114,363			88,045			93,751
Leasehold improvements		4,710			5,921			5,945
Machinery and equipment		174,909			159,819			161,357
		316,768			272,236			282,773
Less accumulated depreciation and amortization		(151,646		)	(134,323		)	(135,570		)
		165,122			137,913			147,203
Capital projects in progress		25,189			13,811			19,277
		$	190,311		$	151,724		$	166,480

 

Included in property, plant and equipment at December 31, 2005, are land, buildings, building improvements and construction-in-progress of consolidated variable interest entities with a net book value of $9.0 million.

5. Investments

Equity Method Investment

The Company has a 35% equity interest in Keymark Enterprises, LLC (“Keymark”), for which it accounts using the equity method. Keymark develops software that assists in the design and engineering of residential structures. The Company’s relationship with Keymark includes the specification of the Company’s products in the Keymark software. The Company has no obligation to make any additional future capital contributions, nor does it intend to provide additional funding, to Keymark. Due to equity losses through September 30, 2006, the carrying amount of the Company’s investment in Keymark has been written down to zero.

Available-for-Sale Investments

As of December 31, 2005, the Company’s available-for-sale investments had either matured or were redeemed. Prior to that, the Company’s investments in all debt securities were classified as available-for-sale investments. As of September 30, 2005, the Company’s investments, classified as short-term investments, were as follows:

(in thousands)

Gross

Gross

Estimated

Amortized

Unrealized

Unrealized

Fair

Cost

Gains

Losses

Value

Debt investments

Municipal bonds

$

6,315

$

—

$

12

$

6,303

 

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6. Debt

Outstanding debt at September 30, 2006 and 2005, and December 31, 2005, and the available credit at September 30, 2006, consisted of the following:

(dollar amounts in thousands)		Available			Debt Outstanding
		Credit at September 30,			at September 30,						at December 31,
		2006			2006			2005			2005
Revolving line of credit, interest at bank’s reference rate less 0.50% (at September 30, 2006, the bank’s reference rate less 0.50% was 7.75%), expires November 2006		$	13,800		$	—		$	—		$	—
Revolving term commitment, interest at bank’s prime rate less 0.50% (at September 30, 2006, the bank’s prime rate less 0.50% was 7.75%), expires October 2007		9,200			—			—			—
Revolving line of credit, interest at the bank’s base rate plus 2% (at September 30, 2006, the bank’s base rate plus 2% was 6.75%), expires September 2007		1,296			—			—			—
Revolving lines of credit, interest rates between 3.3768% and 4.50%		5,359			—			—			—
Term loan, interest at 7.70%, collateralized by real estate, repaid June 2006		—			—			—			1,941
Term loan, interest at bank’s base rate plus 1.65% (at September 30, 2006, the bank’s base  rate plus 1.65% was 6.177%), collateralized by real  estate, repaid March 2006		—			—			—			1,691
Term loan, interest at LIBOR plus 1.375% (at September 30, 2006, LIBOR plus 1.375% was 6.775%), matures May 2008		—			600			900			750
Term loans, interest rates between 4.00% and 5.50%, expirations between 2006 and 2018		—			216			1,519			732
		29,655			816			2,419			5,114
Less current portion of long-term debt					(326		)	(545		)	(2,186		)
Long-term debt, net of current portion					$	490		$	1,874		$	2,928
Available credit		$	29,655

 

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