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<SEC-DOCUMENT>0000790730-06-000003.txt : 20061114
<SEC-HEADER>0000790730-06-000003.hdr.sgml : 20061114
<ACCEPTANCE-DATETIME>20060411113500
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000790730-06-000003
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20060411

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AMERON INTERNATIONAL CORP
		CENTRAL INDEX KEY:			0000790730
		STANDARD INDUSTRIAL CLASSIFICATION:	CONCRETE GYPSUM  PLASTER PRODUCTS [3270]
		IRS NUMBER:				770100596
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1130

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		245 S LOS ROBLES AVE
		CITY:			PASADENA
		STATE:			CA
		ZIP:			91101
		BUSINESS PHONE:		6266834000

	MAIL ADDRESS:	
		STREET 1:		245 S LOS ROBLES AVE
		CITY:			PASADENA
		STATE:			CA
		ZIP:			91101

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AMERON INC/DE
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<HTML>

<HEAD>
<TITLE>April 10</TITLE>
</HEAD>

<BODY>

<P class="MsoNormal">April 10, 2006</P>
<P class="MsoNormal">&nbsp;</P>
<P class="MsoNormal" align="right" style="text-align: right"><I><U>VIA FAX
202-772-9368 and U.S. MAIL</U></I></P>
<P class="MsoNormal" style="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P class="MsoNormal" style="margin-top: 0; margin-bottom: 0">Mr. John Cash</P>
<P class="MsoNormal" style="margin-top: 0; margin-bottom: 0">Accounting Branch Chief</P>
<P class="MsoNormal" style="margin-top: 0; margin-bottom: 0">United States Securities and Exchange Commission</P>
<P class="MsoNormal" style="margin-top: 0; margin-bottom: 0">Division of Corporate Finance</P>
<P class="MsoNormal" style="margin-top: 0; margin-bottom: 0">Mail Stop 7010</P>
<P class="MsoNormal" style="margin-top: 0; margin-bottom: 0">Washington, D.C.&nbsp; 20549-7010</P>
<P class="MsoNormal" style="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><B>RE:&nbsp;&nbsp;&nbsp;&nbsp; Ameron International Corporation</B></P>
<P class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Form 10-K for Fiscal Year Ended November 30,
2005</B></P>
<P class="MsoNormal" style="margin-top: 0; margin-bottom: 0"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; File No. 1-9102</B></P>
<P class="MsoNormal">Dear Mr. Cash:</P>
<P class="MsoNormal">This letter is the response of Ameron International
Corporation (&quot;Ameron&quot; or the &quot;Company&quot;) to your comment letter dated March 9,
2006.&nbsp; As you requested, in order to facilitate your review, the numbered
responses in this letter correspond to those contained in your letter.&nbsp; Your
comments are repeated in italics, followed by the Company's response in normal
font.</P>
<P class="MsoNormal"><B><U>Form 10-K for the Year Ended November 30, 2005</U></B></P>
<P class="MsoNormal"><B><U>Item 1 - Business</U></B></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><I>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We note your disclosures concerning backlog in Item 1(f)(v) of your filing.&nbsp; In
future filings, please quantify the amount of backlog that you expect will not
be filled in the current fiscal year.&nbsp; Refer to Item 101(c)(viii) of Regulation
S-K.&nbsp; In this regard, we note your statement that a "substantial portion&quot; of
your backlog is expected to be filled during 2006.</I></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><I>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I>In future filings of Form 10-K, the Company will quantify the
amount of backlog that is not expected to be filled in the next fiscal year.&nbsp;
Backlog as of November 30, 2005 totaled $207.7
million.&nbsp; Of that amount, $23.9 million, or 11.5% of total backlog, was not
expected to be converted into sales during 2006.</P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><B><U>Item 7
- - Management's Discussion and Analysis</U></B></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><B><U>
Critical Accounting Policies and Estimates</U></B></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><I>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We assume from your disclosures that losses under your self insurance are
capped.&nbsp; Please confirm our assumption.&nbsp; If our assumption is correct, please
disclose those caps in future filings, as we believe this information provides
your investors with valuable information about your liquidity.</I></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><I>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I>The Company purchases insurance from third-party insurance
companies subject to various self-insured retention levels or deductibles.&nbsp; In
future filings, the self-insurance limits will be disclosed.&nbsp; In Form 10-Q for
the first quarter ended March 5, 2006, the Company
reported that the current self-insurance limits are $1.0 million per workers'
compensation claim, $.1 million per general or product liability claim, and $.25
million per vehicle claim.</P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><B><U>
Liquidity and Capital Resources</U></B></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><I>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We read in Item 1(f)(vii) of your filing that your sales terms normally require
payment within 30 to 60 days after shipment.&nbsp; However, based on the numbers in
your financial statements, it appears that your accounts receivable only turn
about four times each year.&nbsp; Please explain to us why your accounts receivable
turnover appears low in relation to your sales terms.&nbsp; In future filings, please
briefly address this matter in the analysis of your liquidity.</I></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><I>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I>The Company's sales terms normally require payment within 30 to
60 days after shipment.&nbsp; Overall, accounts receivable turnover for the year
ended November 30, 2005, based on sales of $704.6 million and a trade receivable
balance of $175.6 million, was 4.0 times, or 91.3 days' sales outstanding.&nbsp;
Overall, the accounts receivable turnover and days' sales outstanding
measurement appear low compared to the Company's normal sales terms due to a
number of factors.&nbsp; Included in trade receivables at November 30, 2005 were
unbilled receivables of $29.7 million under the percentage-of-completion method
of revenue recognition.&nbsp; The level of such unbilled receivables is highlighted
in Note 3 of the Notes to Consolidated Financial Statements.&nbsp; This treatment
adversely affected accounts receivable turnover and days' sales outstanding by
approximately .8 turns and 15 days.&nbsp; Other major factors that adversely affect
overall accounts receivable turnover include contract retention amounts in some
of the industries served by the Company and the nature of some of the
industries, customers and geographic areas the Company serves.&nbsp; For example,
customary payment practice in certain foreign countries tends to be greater than
the Company's normal sales terms.&nbsp; In future filings, the Company will discuss
accounts receivable turnover performance.</P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><I>4. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In future filings, please revise your analysis of cash flows to address all
periods presented on your consolidated statements of cash flows.&nbsp; We believe
that this analysis provides valuable insight into your liquidity for those same
periods and allows your investors to more easily identify trends.&nbsp; Please refer
to Section 4.B. of our Release 33-8350, available on our website at <U>
www.sec.gov/rules/interp/33-8350.htm</U>.</I></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><I>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I>In future filings, the Company will discuss all periods
presented in the consolidated statements of cash flows.&nbsp; The discussion and
analysis will focus on explaining material changes in operating, investing and
financing cash flows in both quantitative and qualitative terms.</P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><I>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We read that you expect to contribute $16.6 million to your US pension plan in
2006.&nbsp; Based on your disclosures in Note 15, this amount appears significantly
higher than your contributions in previous years.&nbsp; Please tell us, and revise
future quarterly and annual filings to address, the factors behind this increase
in your annual pension contribution, including whether you expect this increased
level of contribution to continue in the future.</I></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The increase in pension contributions from $3.7 million in fiscal year 2005 to
$16.6 million expected to be made in fiscal year 2006 results primarily from two
factors.&nbsp; The <B>first factor</B> is that an Additional Funding Charge ("AFC")
applies for the first time to the Company's U.S. pension plan.&nbsp; Under applicable
funding rules, the AFC generally applies if a plan's funding level (i.e., assets
divided by liabilities) is less than 90%.&nbsp; Although the funding level was less
than 90% for the last three years, an exemption from the AFC, which does not
apply for the current year, was available for the prior two years.&nbsp; </P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The <B>second factor</B> is that pension contributions for two plan years will
be made during 2006.&nbsp; That is, the $16.6 million pension contribution includes
$7.8 million for the 2004/2005 plan year and $8.8 million for the first three
quarters of the 2005/2006 plan year.&nbsp; Since contributions for a plan year are
not required to be made within a given fiscal year, there can be variances in
the timing of contributions from plan years to fiscal years.</P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
There are a number of factors that could significantly increase or decrease the
estimated future pension contribution requirement, such as changes in
population, market returns, benefit levels and interest rates.&nbsp; However,
assuming no change in other pension assumptions, it is anticipated that the AFC
requirement would be in effect for another three years.&nbsp; Thereafter, annual
pension contributions would decline to under $5 million.&nbsp; </P>
<P class="MsoNormal" style="margin-left: .5in">In future Form 10-Q and Form 10-K
filings, the Company will discuss factors underlying the annual pension
contribution for the current fiscal year and for future years to the extent
known.<B><I>&nbsp; </I></B></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><B><U>Results
of Operations:&nbsp; 2005 Compared with 2004</U></B></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><I>6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We refer you to your current segmental analysis of sales and gross profit.&nbsp; In
future filings, when you indicate that multiple factors contributed to a change
in your results, please quantify the impact of each factor where possible.&nbsp;
Please refer to Item 303(a)(3) of Regulation S-K, including Item 303(a)(3)(iii),
and to our Release 33-8350.</I></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><I>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I>In future filings where the Company discusses factors that
contributed to changes in sales or gross profit, a quantification of those
factors will be provided to the extent possible.&nbsp; In the Form 10-Q filed for the
first quarter ended March 5, 2006, the Company provided a more detailed analysis
and quantification of sales and gross profit changes.</P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><I>7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In future filings, please revise your analysis of gross profit to quantify and
analyze your gross profit as a percentage of revenues for each segment.&nbsp; In this
regard, your current discussion only quantifies the change in gross profit for
each segment, without quantifying gross profit itself or analyzing its change in
relation to the change in revenues.&nbsp; We remind you that one of the objectives of
MD&amp;A is to give readers a view of the Company through the eyes of management.</I></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In future filings, the Company will expand the disclosure of gross profit and
gross profit as a percentage of revenue for each segment.&nbsp; In the Form 10-Q
filed for the first quarter ended March 5, 2006, the Company provided a
quantification of factors contributing to the change in gross profit for each
segment and disclosed the gross profit as a percentage of revenue for each
segment.</P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><B><U>Item 8
- - Financial Statements and Supplementary Data</U></B></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><B><U>Note 1
- - Summary of Significant Accounting Policies </U></B></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><B><U>Revenue
Recognition</U></B></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><I>8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We read that your Water Transmission Group primarily recognizes revenue under
the percentage of completion method.&nbsp; We have the following comments:</I></P>
<UL>
  <LI>
  <P class="MsoNormal" margin-left: .5in"><I>Please tell us, and disclose in future filings, your
methodology for determining earned revenue and costs of earned revenue for each
period.&nbsp; We believe that this is an important aspect of your accounting policy
to disclose to your investors, since there are two alternative approaches.&nbsp;
Refer to paragraphs 79-81 of SOP 81-1.</I></P></LI>
  <LI>
  <P class="MsoNormal" margin-left: .5in"><I>Please tell us if your contracts involve significant change
orders or claims.&nbsp; If so, please tell us, and disclose in future filings, how
you account for such change orders or claims.</I></P></LI>
</UL>
<P class="MsoNormal" style="margin-left: .5in">In Note 1 of the Notes to
Consolidated Financial Statements, the Company disclosed that the Water
Transmission Group recognizes revenue using the percentage of completion
methodology.&nbsp; Of the two approved alternatives under paragraphs 79-81 of SOP
81-1, the Company uses Alternative A.&nbsp; Revenue for the period is estimated by
multiplying total estimated contract revenue by the percentage of completion and
then subtracting the amount of previously recognized revenue.&nbsp; Cost for the
period is estimated by multiplying total estimated contract cost by the
percentage of completion and then subtracting the amount of previously
recognized cost.&nbsp; The percentage of completion is based on the completed units
of production methodology.</P>
<P class="MsoNormal" style="margin-left: .5in">The contracts do not normally
involve significant change orders.&nbsp; Accounting for change orders is based on the
degree of probability of whether a change in contract price will occur.&nbsp; For
change orders where it is not probable that a change in contract price will
occur, costs for the period are treated as costs of the contract performance.&nbsp;
For change orders where it is probable that a change in contract price will
occur and that amount can be reasonably estimated, contract revenue and contract
cost are recognized.&nbsp; Claims incurred during the job are charged to the costs of
contract performance.&nbsp; Revenues from claims are recognized only when the amounts
have been received or awarded.&nbsp; All recognition is based on the percentage of
completion methodology.&nbsp; </P>
<P class="MsoNormal" style="margin-left: .5in">In the Form 10-Q filed for the
first quarter ended March 5, 2006, the Company has disclosed the methodology
used for reporting earned revenue and earned cost along with the accounting for
change orders and claims. </P>
<P class="MsoNormal"><B><U>Net Income per Share</U></B></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><I>9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Please provide to us, and disclose in future filings, the information required
by paragraph 40 of SFAS 128.</I></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In future filings, the Company will include a schedule detailing the computation
of net income per share.&nbsp; In the Form 10-Q filed for the first quarter ended
March 5, 2006, the Company provided the required information as shown below:</P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp; </FONT> <U><FONT size="2">Three Months Ended</FONT></U></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>March 5, 2006</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT> <U><FONT size="2">February 27, 2005</FONT></U></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Numerator:</FONT></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; Net Income <I>($Thousands)</I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3,611</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT> <U><FONT size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 481</FONT></U></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Denominator for basic income per
share:</FONT></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; Weighted-average shares
outstanding, basic&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>&nbsp; 8,614,269</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT> <U>
<FONT size="2">8,342,338</FONT></U></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Denominator for diluted income
per share:</FONT></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; Weighted-average shares
outstanding, basic&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; 8,614,269&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8,342,338</FONT></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; Dilutive effect of stock
options&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>&nbsp;&nbsp;&nbsp;&nbsp; 171,772</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>
<U><FONT size="2">&nbsp;&nbsp;&nbsp; 177,521</FONT></U></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; Weighted-average shares
outstanding, diluted&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>&nbsp; 8,786,041</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT> <U>
<FONT size="2">8,519,859</FONT></U></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic net income per
share&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>$&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.42</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>
<U><FONT size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .06</FONT></U></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted net income per
share&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;.41</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>
<U><FONT size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .06</FONT></U></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in">
&nbsp;</P>
<P class="MsoNormal"><B><U>Note 10 - Debt</U></B></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><I>10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Please revise future filings to disclose all information required by Article</I></P>
<P class="MsoNormal" style="margin-left: .5in"><I>5-02(22) of Regulation S-X.&nbsp;
In this regard, you should disclose the maturity date of each issuance of debt
and the interest terms of your variable debt, such as LIBOR plus 2 percent, in
addition to quantifying those variable rates as of period end.&nbsp; Please ensure
that the maturity dates that you disclose conform to the information seen in
your future five-year maturity table.</I></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In future filings, the Company will disclose all information required by Article 5-02(22) of Regulation S-X.&nbsp; In
the Form 10-Q filed for the first quarter ended March 5, 2006, the Company
provided the maturity date of all outstanding debt and the current interest rate
of all outstanding variable debt and the terms for determining variable interest
rates.&nbsp; As requested, the maturity dates referenced have been verified to the
five-year maturity table.</P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><B><U>Note 14
- - Commitments and Contingencies</U></B></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><I>11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We note the Company reached a settlement with McDermott in May 2005.&nbsp; Tell us
and disclose in future filings the details surrounding the settlement, including
quantification of the amount paid and any amounts that were previously accrued
for this matter.</I></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><I>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I>Please reference the Company's Form 10-Q for the quarter ended
May 29, 2005 where it was reported under Note 10 of the Notes to Consolidated
Financial Statements that a settlement was reached with McDermott in May 2005.&nbsp;
Also reported was that costs, including legal and settlement costs, for the
quarter ended May 29, 2005 associated with the McDermott suits totaled $4.9
million.&nbsp; The Company had accrued $1.0 million in fiscal year 2004 for the
estimated settlement costs for this matter.</P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><B><U>Note 17
- - Segment Information</U></B></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><I>12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Based on the description of your business, it is unclear to us that you only
have four reportable segments.&nbsp; Specifically, we note your Infrastructure
Products Group appears to contain several businesses, including a ready-mix
concrete and aggregates business, a concrete pipe business, and a concrete and
steel poles business.&nbsp; Please provide us with the following information to help
us better understand how your presentation complies with paragraph 17 of SFAS
131 and EITF 04-10:</I></P>
<UL>
  <LI>
  <P class="MsoNormal" margin-left: .5in"><I>Please briefly describe your management structure to us, with a
focus on how your segments are managed.&nbsp; Specifically identify your chief
operating decision maker (CODM) and your segment manager for the Infrastructure
Products Group segment, as these terms are defined in SFAS 131.</I></P></LI>
  <LI>
  <P class="MsoNormal" margin-left: .5in"><I>Tell us how you determined that your Infrastructure Products
Group was a single reportable segment under SFAS 131.&nbsp; Your response should
specifically address the lowest level of discrete financial information
contained in the reports that are viewed by your CODM to manage your business
and assess performance of your segments.&nbsp; If the reports viewed by your CODM do
not present information below the consolidated Infrastructure Products Group
level, please help us to understand how your CODM is able to effectively manage
those disparate businesses without more detailed information.</I></P></LI>
</UL>
<P class="MsoNormal" style="margin-left: .5in">The Company's management
structure includes four segment managers who report to the chief operating
decision maker, who is the Company's Chief Executive Officer.&nbsp; Each of the
operating segments, including the Infrastructure Products Group, has a separate
segment manager who is responsible for operating activities, financial results,
financial forecasts and preparation of business plans.&nbsp; The Company's chief
operating decision maker assesses the performance of each segment and is
responsible for the allocation of resources to the segments.</P>
<P class="MsoNormal" style="margin-left: .5in">While the Infrastructure
Products Group consists of two primary business units, the Hawaii Division and
the Pole Products Division, the Group is managed as a single operating segment
by a single segment manager due to many similarities in the production process,
the products, and the markets and customers the two divisions share.&nbsp; Financial
reports to the Company's Board of Directors are prepared on this basis.&nbsp; The
chief operating decision maker also receives financial reports on this basis
and, as with all Company operating segments, also receives detailed
manufacturing plant level financial performance data which represent the lowest
level of discrete financial information contained in the reports reviewed by the
chief operating decision maker.</P>
<P class="MsoNormal" style="margin-left: .5in">The Company's four operating
segments also constitute four reportable segments under SFAS No. 131.&nbsp; Under the
basic principles of SFAS No. 131, segment reporting is based on the way
management organizes the segments within the enterprise for making operating
decisions and assessing performance.&nbsp; The Company believes its presentation of
four operating segments (the Performance Coatings &amp; Finishes,
Fiberglass-Composite Pipe, Water Transmission and Infrastructure Products
Groups) is consistent with this principle.</P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><I>13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We note your tabular presentation of segmental information and have the
following comments:</I></P>
<UL>
  <LI>
  <P class="MsoNormal" margin-left: .5in"><I>Based on your current disclosures, it is unclear to us what
measure of segmental profit or loss is used by your CODM to allocate resources
among and assess the performance of your segments.&nbsp; Please provide us with this
information and revise Note 17 in future filings to clarify this matter.</I></P>
  </LI>
  <LI>
  <P class="MsoNormal" margin-left: .5in"><I>We read in the narrative preceding this table that you have
allocated certain selling, general and administrative expenses to the various
segments based on &quot;assumptions believed to be appropriate in the
circumstances.&quot;&nbsp; Please provide us, and disclose in future filings, a more
detailed explanation of how these costs are allocated.&nbsp; Refer to paragraph 31(b)
of SFAS 131.</I></P></LI>
</UL>
<P class="MsoNormal" style="margin-left: .5in">In Notes to Consolidated
Financial Statements in the Company's Form 10-K for the year ended November 30,
2005, Note 17 did not clearly disclose what the primary measurements are that
the CODM utilizes to assess performance and to allocate resources among the
Company's segments.&nbsp; In future Form 10-K and Form 10-Q filings, the Company will
expand the disclosure to describe the criteria used to assess performance and
allocate resources. &nbsp;In future filings, the Company will also explain the
methodology used to allocate certain selling, general and administrative
expenses.&nbsp; In the Company's Form 10-Q for the first quarter ended March 5, 2006,
the following disclosure was included:</P>
<P class="MsoNormal" style="margin-left: .5in">&quot;The Company's Chief Operating
Decision Maker (&quot;CODM&quot;) is the Chief Executive Officer who primarily reviews the
sales and income before interest, income taxes and equity in earnings of joint
venture for each operating segment in making decisions about allocating
resources and assessing performance.&nbsp; Similarly, the disclosure in Note
17-Segment Information did not fully describe how selling, general and
administrative expenses are allocated to the Company's segments.&nbsp; In the
Company's Form 10-Q for the first quarter ended March 5, 2006, the following
more detailed explanation was included:</P>
<P class="MsoNormal" style="margin-left: .5in">The Company allocates certain
selling, general and administrative expenses to operating segments utilizing
assumptions believed to be appropriate in the circumstances.&nbsp; Costs of shared
services (e.g., costs of Company-wide insurance programs or benefit plans) are
allocated to the reportable segments based on revenue, wages, or net assets
employed.&nbsp; Other items not related to current operations or of an unusual
nature, such as adjustments to reflect inventory balances of certain steel
inventories under the last-in, first-out (&quot;LIFO&quot;) method, certain unusual legal
costs and expenses, interest expense and income taxes, are not allocated to the
reportable segments.&quot;</P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><I>14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We note your disclosures by geographic areas.&nbsp; If sales to any individual
foreign country are material, or if long-lived assets located in any individual
foreign country are material, please revise future filings to separately
disclose this information.&nbsp; Also, please revise future filings to clarify your
basis for attributing revenues to particular geographic areas or countries, such
as based on your location that made the sale, or based on the location of the
customer who purchased the goods.&nbsp; Please refer to paragraph 38 of SFAS 131.</I></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><I>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I>In response to the inquiry regarding disclosures by geographic
area under Note 17 of the Notes to Consolidated Financial Statements, in the
Company's Form 10-K for the year ended November 30, 2005, sales to an individual
foreign country did not represent 10% or more of consolidated sales.&nbsp; Also, no
long-lived assets were located in an individual foreign country that represented
10% or more of consolidated long-lived assets.</P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company reports sales by geographic areas based on the location of the
Company's plants that made the sale.&nbsp; In future Form 10-K filings, the Company
will clarify the basis for attributing revenues to particular geographic areas
or countries.&nbsp; </P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><B><U>Item 9A
- - Controls and Procedures</U></B></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><I>15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We note your Chief Executive Officer and Chief Financial Offer concluded the
Company's disclosure controls and procedures &quot;...are effective in timely alerting
them to material information relating to the Company (including its consolidated
subsidiaries) required to be included in the Company's periodic Commission
filings.&quot;&nbsp; Confirm and revise future filings to clarify, if true, that your
officers concluded that your disclosure controls and procedures are effective to
ensure that information required to be disclosed by you in the reports that you
file or submit under the Exchange Act is recorded, processed, summarized and
reported, within the time periods specified in the Commission's rules and forms
and is accumulated and communicated to management, including the Chief Executive
Officer and Chief Financial Officer, or persons performing similar functions, as
appropriate to allow timely decisions regarding required disclosure.&nbsp; Refer to
Exchange Act Rule 13a-15(e) for the definition of disclosure controls and
procedures.&nbsp; Alternatively, your officers may conclude that the Company's
disclosure controls and procedures are &quot;effective&quot; without defining disclosure
controls and procedures.</I></P>
<P class="MsoNormal" style="margin-left: .5in">In its Form 10-Q filed for the
first quarter ended March 5, 2006, the Company has concluded that &quot;Based on
their evaluation as of March 5, 2006, the principal executive officer and
principal financial officer of the Company have concluded that the Company's
disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)
under the Securities Exchange Act of 1934) are effective to ensure that the
information required to be disclosed by the Company in the reports that it files
or submits under the Securities Exchange Act of 1934 is recorded, processed,
summarized and reported within the time periods specified in SEC rules and forms
and is accumulated and communicated to management, including the Chief Executive
Officer and Chief Financial Officer, as appropriate to allow timely decisions
regarding required disclosure.&quot;</P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><I>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I>The Company confirms that a similar representation could have
been made as of November 30, 2005.</P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><B><U>
Schedule II - Valuation and Qualifying Accounts and Reserves</U></B></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in">16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <I>
We note that your reserve for self-insured programs increased by approximately
48% during the fiscal year.&nbsp; We also note that this increase appears to be
driven by the $6.0 million amount labeled &quot;reclassifications and other.&quot;&nbsp; Please
tell us what this amount represents and how you accounted for it.&nbsp; Please revise
this schedule in future filings to briefly describe any material amounts shown
in this &quot;other&quot; column. &nbsp;Also, please revise the title of this schedule in
future filings to clarify that this is Schedule II.&nbsp; Refer to Article 5-04(c) of
Regulation S-X and Article 12-09 of Regulation S-X.</I></P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in"><I>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I>As reported in Note 7 of the Notes to Consolidated Financial
Statements, the Company revised its presentation of the balance of
self-insurance reserves at November 30, 2005 to reflect the gross amount of
liabilities without netting against a stop/loss recoverable of $6.3 million from
insurance companies.&nbsp; Stop/loss recoverable is included in other receivables in
Note 3.&nbsp; The effect of this revision was shown in the &quot;Reclassification and
Other&quot; column of the financial statements schedule.</P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In future Form 10-K filings, the Company will describe any material amounts
shown in the &quot;Reclassification and Other&quot; column of Schedule II.&nbsp; Additionally,
per Article 5-04(c) of Regulation S-X and Article 12-09 of Regulation S-X, the
Company will ensure that the schedule titled &quot;Valuation and Qualifying Accounts
and Reserve&quot; will be labeled as Schedule II.</P>
<P class="MsoNormal" style="text-indent: -.5in; margin-left: .5in">The Company
understands and acknowledges that:</P>
<UL>
  <LI>
  <P class="MsoNormal" margin-left: .5in">the Company is responsible for the adequacy and accuracy of the
disclosure in the filing;</P></LI>
  <LI>
  <P class="MsoNormal" margin-left: .5in">staff comments or changes to disclosure in response to staff
comments do not foreclose the Commission from taking any action with respect to
the filing; and</P></LI>
  <LI>
  <P class="MsoNormal" margin-left: .5in">the Company may not assert staff comments as a defense in any
proceeding initiated by the Commission or any person under the federal
securities laws of the United States.</P></LI>
</UL>
<P class="MsoNormal">If additional information is required or further
clarification is necessary, please do not hesitate to contact me.</P>
<P class="MsoNormal">Sincerely,</P>
<P class="MsoNormal" style="margin-top: 0; margin-bottom: 0">James R. McLaughlin</P>
<P class="MsoNormal" style="margin-top: 0; margin-bottom: 0">Senior Vice President,</P>
<P class="MsoNormal" style="margin-top: 0; margin-bottom: 0">Chief Financial Officer &amp; Treasurer</P>

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