(Mark One)

X

QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended May 31, 2003
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 0-11631

Delaware (State or other jurisdiction of incorporation or organization)

36-2852993
(I.R.S. Employer Identification No.)

1300 S. Wolf Road
P.0. Box 5065
Des Plaines, Illinois

60017-5065
(Zip code)

(Address of principal executive offices)

Registrant's telephone number, including area code:

(847) 827-9880

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Name of each exchange on which registered

Common Stock, $.001 par value

The NASDAQ SmallCap Market

 Securities registered pursuant to Section 12(g) of the Act: None

(in thousands)

May 31,

November 30,

2003

2002

(Unaudited)

(Unaudited)

Assets

Current:

     Cash

$

1,702

$

1,221

     Accounts receivable, less allowance for doubtful accounts of $916

     and $926

36,925

32,225

     Inventories, net

24,911

22,870

     Prepaid expenses and miscellaneous

5,201

4,724

               Total current assets

68,739

61,040

Property and equipment:

     Land

7,343

7,267

     Building and improvements

33,682

33,376

     Tools and dies

13,001

12,116

     Machinery and equipment

8,050

7,690

     Computer equipment

9,094

8,963

     Office furniture and equipment

3,573

3,213

74,743

72,625

Less accumulated depreciation and amortization

(32,683

)

(30,619

)

               Net property and equipment

42,060

42,006

Other assets:

     Goodwill

12,138

11,766

     Deferred financing costs, net of accumulated amortization of $5,076

      and $4,426

5,267

5,917

     Miscellaneous

3,341

3,123

               Total other assets

20,746

20,806

Total assets

$

131,545

$

123,852

Liabilities and Stockholders' Deficit

Current:

   Accounts payable

$

11,328

$

10,960

   Accrued liabilities

16,270

18,471

   Short term borrowings

9,350

6,050

   Current maturities of long-term debt

3,901

4,681

   Total current liabilities

40,849

40,162

Long-term debt, less current maturities

153,492

155,626

Deferred income taxes payable

3,771

3,215

Commitments and Contingencies

Stockholders' Deficit

  Preferred stock, Series A and B convertible $.001

     par value, $100 stated value, 5,000,000 shares

     authorized and 1,063,500 shares issued.

145,950

140,283

  Common stock, $.001 par value;

     Shares authorized 45,000,000;

     Issued 2,529,534

2

2

  Paid-in capital

1,035

1,035

  Accumulated other comprehensive income (loss)

696

(772

)

  Shareholder note receivable

(200

)

(200

)

  Accumulated deficit

(214,050

)

(215,499

)

  Total stockholders' deficit

(66,567

)

(75,151

)

Total liabilities and stockholders' equity

$

131,545

$

123,852

(In Thousands Except For Share Amounts)

Three Months Ended

May 31,

May 31,

2003

2002

(Unaudited)

(Unaudited)

Net sales

$

49,981

$

46,376

Cost of sales

24,532

22,554

Gross profit

25,449

23,822

Selling, general and administrative expenses

14,964

13,409

   Operating income

10,485

10,413

Other income (expense):

   Interest expense

(4,025

)

(4,283

)

   Interest and dividend income

4

2

   Unrealized gain on interest rate swap

427

527

   Miscellaneous

40

39

      Total other income (expense)

(3,554

)

(3,715

)

Income before taxes on income

6,931

6,698

Taxes on income

2,633

2,538

Net income

4,298

4,160

Less: preferred dividends

2,861

2,644

Net income available to common shareholders

$

1,437

$

1,516

Net income per common share (basic and diluted)

$

.57

$

.61

(In Thousands Except For Share Amounts)

Six Months Ended

May 31,

May 31,

2003

2002

(Unaudited)

(Unaudited)

Net sales

$

93,504

$

87,782

Cost of sales

46,651

43,621

Gross profit

46,853

44,161

Selling, general and administrative expenses

29,147

26,482

Costs of terminated acquisition

-

3,050

   Operating income

17,706

14,629

Other income (expense):

   Interest expense

(8,134

)

(8,680

)

   Interest and dividend income

7

6

   Unrealized gain on interest rate swap

1,690

754

   Miscellaneous

56

57

      Total other income (expense)

(6,381

)

(7,863

)

Income before taxes on income

11,325

6,766

Taxes on income

4,209

2,564

Net income

7,116

4,202

Less: preferred dividends

5,667

5,236

Net income (loss) available to common shareholders

$

1,449

$

(1,034

)

Net income (loss) per common share (basic and diluted)

$

.57

$

(.41

)

(In Thousands)

Six Months Ended

May 31, 2003

(Unaudited)

Accumulated deficit, beginning of period

(215,499

)

Preferred dividend

(5,667

)

Net income, six months ended May 31, 2003

7,116