===============================================================================



                      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 SEPTEMBER 30, 1999


                           COMMISSION FILE NO. 1-3920


                               KINARK CORPORATION
           (Exact name of the registrant as specified in its charter)

              DELAWARE                              71-0268502
       (State of Incorporation)         (I.R.S. Employer Identification No.)

                              2250 EAST 73RD STREET
                            TULSA, OKLAHOMA 74136-6832
                    (Address of principal executive offices)

              Registrant's telephone number:           (918) 494-0964


     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 and 15 (d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.

                                YES  X              NO
                                    ---                ---
     Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of September 30, 1999.

                   Common Stock $ .10 Par Value . . . . . 6,712,159


================================================================================
<TABLE>
                           KINARK CORPORATION AND SUBSIDIARIES

                          INDEX TO QUARTERLY REPORT ON FORM 10-Q

<CAPTION>
                                                                         PAGE
<S>                                                                      <C>
PART I. FINANCIAL INFORMATION

        Forward Looking Statements or Information                          2

        Item 1.   Financial Statements

                  Independent Accountants' Review Report                   3

                  Condensed Consolidated Balance Sheets
                    as of September 30, 1999 (unaudited),
                    and December 31, 1998                                  4

                  Condensed Consolidated Statements of
                    Earnings for the three and nine months
                    ended September 30, 1999 and 1998
                    (unaudited)                                            5

                   Condensed Consolidated Statements of
                     Cash Flows for the nine months ended
                     September 30, 1999 and 1998 (unaudited)               6

                   Notes to Condensed Consolidated Financial
                     Statements for the three and nine months
                     ended September 30, 1999 and 1998
                     (unaudited)                                         7-11

         Item 2.   Management's Discussion and Analysis of
                     Financial Condition and Results of
                     Operations                                          12-16

         Item 3.   Quantitative and Qualitative Disclosures
                     About Market Risks                                    17

PART II. OTHER INFORMATION                                               18-19

SIGNATURES                                                                 20
</TABLE>



FORWARD LOOKING STATEMENTS OR INFORMATION

     Certain statements in this Form 10-Q, including information set forth
under the caption "Management's Discussion and Analysis of Financial Condition
and Results of Operations", constitute "Forward-Looking Statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended.  Such statements are
typically punctuated by words or phrases such as "anticipates," "estimate,"
"should," "may," "management believes," and words or phrases of similar
import.  The Company cautions investors that such forward-looking statements
included in this Form 10-Q, or hereafter included in other publicly available
documents filed with the Securities and Exchange Commission, reports to the
Company's stockholders and other publically available statements issued or
released by the Company involve significant risks, uncertainties, and other
factors which could cause the Company's actual results, performance (financial
or operating) or achievements to differ materially from the future results,
performance (financial or operating) or achievements expressed or implied by
such forward-looking statements.  Factors that could cause or contribute to
such differences could include, but are not limited to, changes in demand,
prices, and the raw materials cost of steel and zinc; changes in economic
conditions of the various markets the Company serves, Year 2000 issues, as
well as the other risks detailed herein and in the Company's reports filed
with the Securities and Exchange Commission.  The Company believes that the
important factors set forth in the Company's cautionary statements at Exhibit
99 to this Form 10-Q could cause such a material difference to occur and
investors are referred to Exhibit 99 for such cautionary statements.

                                      -2-




INDEPENDENT ACCOUNTANTS' REVIEW REPORT


To the Board of Directors and Stockholders of Kinark Corporation:

We have reviewed the accompanying condensed consolidated balance sheet of
Kinark Corporation and subsidiaries (the "Company") as of  September 30, 1999,
and the related condensed consolidated statements of earnings for the three
and nine-month periods ended September 30, 1999 and 1998 and the condensed
consolidated statements of cash flows for the nine months ended September 30,
1999 and 1998.  These financial statements are the responsibility of the
Company's management.

We conducted our reviews in accordance with standards established by the
American Institute of Certified Public Accountants.  A review of interim
financial information consists principally of applying analytical procedures
to financial data and of making inquiries of persons responsible for financial
and accounting matters.  It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, the
objective of which is the expression of an opinion regarding the financial
statements taken as a whole.  Accordingly, we do not express such an opinion.

Based on our reviews, we are not aware of any material modifications that
should be made to such condensed consolidated financial statements for them to
be in conformity with generally accepted accounting principles.

We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet of Kinark Corporation and
subsidiaries as of December 31, 1998, and the related consolidated statements
of earnings, stockholders' equity, and cash flows for the year then ended (not
presented herein); and in our report dated March 3, 1999, we expressed an
unqualified opinion on those consolidated financial statements.  In our
opinion, the information set forth in the accompanying condensed consolidated
balance sheet as of December 31, 1998 is fairly stated, in all material
respects, in relation to the consolidated balance sheet from which it has been
derived.



/s/Deloitte & Touche LLP
Tulsa, Oklahoma
November 12, 1999

                                     -3-



<TABLE>
                       KINARK CORPORATION AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
<CAPTION>
                                                      Unaudited
                                                    SEPTEMBER 30       DEC 31
(Dollars in Thousands)                                  1999            1998
------------------------------------------------------------------------------
<S>                                                    <C>             <C>
ASSETS
Current Assets
     Cash and cash equivalents                         $   132         $   189
     Trade receivables, net of reserves of
       $339 and $169, respectively                       7,043           6,600
     Inventories                                         4,686           4,158
     Investments                                           ---             487
     Prepaid expenses and other assets                     714             984
     Deferred tax asset, net                               501             735
                                                        ------          ------
        TOTAL CURRENT ASSETS                            13,076          13,153
                                                        ------          ------

PROPERTY, PLANT AND EQUIPMENT, AT COST
Land                                                       776             776
Chemical storage facilities                             10,683          10,629
Warehousing equipment                                      779             750
Galvanizing plants and equipment                        23,859          20,006
Other                                                      167             323
                                                        ------          ------
                                                        36,264          32,484
     Less:  Allowance for depreciation                  18,764          16,877
                                                        ------          ------
TOTAL PROPERTY, PLANT & EQUIPMENT, NET                  17,500          15,607
                                                        ------          ------
DEFERRED TAX ASSET, NET                                     85             131
GOODWILL, NET OF ACCUMULATED AMORTIZATION                3,811           3,952
OTHER ASSETS                                               254             265
                                                        ------          ------
TOTAL ASSETS                                           $34,726         $33,108
                                                        ======          ======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
     Trade accounts payable                            $ 1,902         $ 1,770
     Accrued payroll and employee benefits               1,046           1,210
     Other taxes                                           980             979
     Other accrued liabilities                           1,507           1,194
     Current maturities of long-term obligations           819             930
                                                        ------          ------
TOTAL CURRENT LIABILITIES                                6,254           6,083
                                                        ------          ------
PENSION AND RELATED LIABILITIES                            637             652
LONG-TERM OBLIGATIONS                                    9,311           8,590
COMMITMENTS AND CONTINGENCIES (NOTE 6)                     ---             ---
STOCKHOLDERS' EQUITY
Common stock                                               819             819
Additional paid-in capital                              17,364          17,364
Minimum pension liability                                 (112)           (112)
Retained earnings                                        6,433           5,553
Less:  Treasury stock at cost                           (5,980)         (5,841)
                                                        ------          ------
TOTAL STOCKHOLDERS' EQUITY                              18,524          17,783
                                                        ------          ------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY               $34,726         $33,108
                                                        ======          ======
</TABLE>
See notes to condensed consolidated financial statements.

                                     -4-


<TABLE>
                       KINARK CORPORATION AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
                                  Unaudited
<CAPTION>

                                       Three Months Ended    Nine Months Ended
                                          September 30         September 30
(Dollars in Thousands                  ------------------    -----------------
  Except per Share Amounts)              1999      1998        1999      1998
==============================================================================
<S>                                    <C>       <C>         <C>       <C>
SALES                                  $11,504   $12,206     $34,542   $37,280

COSTS AND EXPENSES
     Cost of sales                       8,424     9,511      25,399    28,199
     Selling, general & administrative   1,512     1,665       4,858     5,248
     Depreciation and amortization         764       779       2,221     2,217
                                         -----     -----      ------    ------
      TOTAL COSTS AND EXPENSES          10,700    11,955      32,478    35,664
                                        ------    ------      ------    ------
OPERATING EARNINGS                         804       251       2,064     1,616

OTHER (INCOME) EXPENSE
     Interest expense, net                 171       159         522       485
     Other income                          ---       ---         ---      (309)
      TOTAL OTHER EXPENSE                  171       159         522       176

EARNINGS BEFORE INCOME TAXES               633        92       1,542     1,440

     Income tax expense                    271        40         662       665
                                        ------    ------      ------    ------
NET EARNINGS                           $   362   $    52     $   880   $   775
                                        ======    ======      ======    ======

BASIC EARNINGS PER COMMON SHARE        $   .05   $   .01     $   .13   $   .11

DILUTED EARNINGS PER COMMON SHARE      $   .05   $   .01     $   .13   $   .11
</TABLE>

See notes to condensed consolidated financial statements.

                                     -5-



<TABLE>
                       KINARK CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   Unaudited
<CAPTION>
                                                  Nine Months Ended
                                                    September 30
                                                  ------------------
(Dollars in Thousands)                             1999        1998
====================================================================
<S>                                              <C>          <C>
OPERATING ACTIVITIES
Net earnings                                     $   880      $   775
Adjustments to reconcile net income to net
cash provided by operating activities:
     Depreciation and amortization                 2,221        2,217
     Gain on involuntary conversion of assets        ---         (309)
     (Gain) loss on disposal of assets               (11)           4
     Deferred income taxes                           280          242
     Gain on sale of securities                      (23)         ---
     Change in assets and liabilities:
          Accounts receivable, net                  (443)        (612)
          Inventories and other                     (247)        (853)
          Accounts payable, accrued liabilities
            and other                                267          797
                                                   -----        -----
CASH PROVIDED BY OPERATING ACTIVITIES              2,924        2,261
                                                   -----        -----
INVESTING ACTIVITIES
     Capital expenditures                         (3,973)      (2,493)
     Proceeds from involuntary conversion
       of assets                                     ---          325
     Proceeds from sale of assets                     11           14
     Sale (purchase) of securities                   510         (443)
                                                   -----        -----
NET CASH USED FOR INVESTING ACTIVITIES            (3,452)      (2,597)
                                                   -----        -----
FINANCING ACTIVITIES
     Purchase of common stock for treasury          (139)         ---
     Proceeds from long-term obligations          21,971       13,995
     Payments on long-term obligations           (21,361)     (13,766)
                                                  ------       ------
CASH PROVIDED BY FINANCING ACTIVITIES                471          229
                                                  ------       ------
DECREASE IN CASH AND CASH EQUIVALENTS                (57)        (107)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD     189          259
                                                  ------       ------
CASH AT END OF PERIOD                            $   132      $   152
                                                  ======       ======
</TABLE>
See notes to condensed consolidated financial statements.

                                     -6-



                        KINARK CORPORATION AND SUBSIDIARIES
               NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
          FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
                                   UNAUDITED

NOTE 1.  BASIS OF PRESENTATION
         ---------------------
         The condensed consolidated financial statements included in this
         report have been prepared by Kinark Corporation (the "Company")
         pursuant to the rules and regulations of the Securities and Exchange
         Commission for interim reporting and include all normal and
         recurring adjustments which are, in the opinion of management,
         necessary for a fair presentation.  These financial statements have
         not been audited by an independent accountant.  The condensed
         consolidated financial statements include the accounts of the
         Company and its subsidiaries.

         Certain information and footnote disclosures normally included in
         financial statements prepared in accordance with generally accepted
         accounting principles have been condensed or omitted pursuant to
         such rules and regulations for interim reporting.  The Company
         believes that the disclosures are adequate to make the information
         presented not misleading.  However, these financial statements
         should be read in conjunction with the financial statements and
         notes thereto included in the Company's Annual Report on Form 10-K,
         for the year ended December 31, 1998.  The financial data for
         the interim periods presented may not necessarily reflect the
         results to be anticipated for the complete year.

NOTE 2.  EARNINGS PER COMMON SHARE
         -------------------------
         Diluted earnings  per common share for the periods presented has
         been computed based upon the weighted average number of shares
         outstanding, adjusted for the dilutive effect of stock options, of
         6,712,159 and 6,790,751 for the three months ended September 30, 1999
         and 1998 respectively, and 6,727,840 and 6,807,756 for the nine
         months ended September 30, 1999 and 1998 respectively.  Basic
         earnings per common share has been computed based upon the average
         number of shares outstanding of 6,712,159 and 6,778,345 for the nine
         months ended September 30, 1999 and 1998 respectively,
         and 6,727,840 and 6,778,345 for the nine months ended September 30,
         1999 and 1998 respectively.  The number of options excluded from
         the calculation of diluted earnings per share due to the option
         price being higher than the share value are 328,000 and 138,000 at
         September 30, 1999 and 1998, respectively.

NOTE 3.  INVENTORIES
         -----------
         Inventories consist primarily of raw zinc "pigs," molten zinc in
         galvanizing kettles and other chemicals and materials used in the
         hot dip galvanizing process.  Such inventories are stated at the
         lower of cost or market with market value based on ultimate
         realizable value from the galvanizing process.  Zinc cost is
         determined on a last-in-first-out (LIFO) basis.  Other inventories
         are valued primarily on an average cost basis.

                                     -7-

NOTE 4.  INVESTMENT SECURITIES
         ---------------------
         During the nine months ended September 30, 1999, the Company sold
         all of its investment for proceeds of $510,000 and realized a
         $23,000 gain.

NOTE 5.  DEBT OBLIGATIONS
         ----------------
         In September 1999, the Company entered into a new three-year bank
         credit agreement with total credit facilities of $23,700,000 that
         replaced a previous loan agreement of $13,250,000 scheduled to
         expire in May 2000.  The new agreement provides (i) a $9,000,000
         maximum revolving line of credit for working capital and general
         corporate purposes, (ii) a $1,500,000 revolving capital expenditures
         facility, (iii) a $4,200,000 term loan and (iv) a $9,000,000 maximum
         bridge loan facility.  The new agreement is scheduled to expire
         September 30, 2002.

         The Company's accounts receivable, inventories, fixed assets and the
         stock of its subsidiaries are pledged as collateral under the
         agreement, and the credit agreement is secured by a guaranty from
         each of the Company's subsidiaries.  Amounts borrowed under the
         agreement bear interest at the prime rate of Bank One, Oklahoma
         or the LIBOR rate, at the option of the Company, subject
         to a rate margin adjustment determined by the Company's
         consolidated debt service ratio.  The prime rate margin adjustment
         ranges from minus 50 basis points (0.50%) to plus 25 basis points
         (0.25%).  The LIBOR rate margin adjustment ranges from plus 225
         basis points (2.25%) to plus 300 basis points (3.00%).

         Term loan payments are based on a five-year amortization
         schedule with equal monthly payments of principal and interest,
         and the loan may be prepaid without penalty.  The revolving line
         of credit may be paid down without penalty, or additional funds may
         be borrowed up to the revolver limit.  The credit agreement
         requires the Company to maintain compliance with covenant limits
         for current ratio, debt to tangible net worth ratio,
         debt service coverage ratio and a capital expenditures ratio.
         The Company was in compliance with such covenants at September 30,
         1999.

NOTE 6.  COMMITMENTS AND CONTINGENCIES
         ------------------------------
         As previously reported, North American Galvanizing Company ("NAG")
         received notice in 1997 from the Illinois Environmental Protection
         Agency ("IEPA") that it was a potentially responsible party under the
         Comprehensive Environmental Response, Compensation, and
         Liability Information System ("CERCLIS") in connection with clean-up
         of an abandoned site formerly owned by Sandoval Zinc Co.  Sandoval
         had operated a secondary zinc smelter at the site until it closed in
         1985.  The IEPA notice includes NAG as one of 59 organizations
         which arranged for the treatment and disposal of hazardous
         substances at Sandoval.  The Company is in the process of
         determining the proportional share of substances that NAG shipped to
         Sandoval, and does not believe based on current information that the
         ultimate resolution of this matter will have a material adverse
         impact on the Company's financial position or results of operations.

                                     -8-

         The Company will continue to have environmental compliance costs
         associated with operations in the galvanizing and chemicals
         businesses.  The Company is committed to complying with the
         environmental legislation and regulations affecting its operations.
         Due to the uncertainties associated with future environmental
         technologies, regulatory interpretations, and prospective
         legislative activity, management cannot reasonably attempt to
         quantify potential costs in this area.

         The Company expenses or capitalizes, where appropriate,
         environmental expenditures that relate to current
         operations as they are incurred.  Such expenditures are expensed
         when they are attributable to past operations and are not expected
         to contribute to current or future revenue generation.  The Company
         records liabilities when remediation or other environmental
         assessment or clean-up efforts are probable and the cost can be
         reasonably estimated.  Management believes this policy complies
         with SOP 96-1.

         NAG enters into purchase commitments with domestic and foreign zinc
         producers to purchase certain of its zinc requirements for its hot
         dip galvanizing operations.  Commitments for the future delivery of
         zinc reflect rates quoted on the London Metals Exchange which are
         not subject to future price adjustment.  At September 30, 1999,
         the aggregate commitments for the procurement of zinc were
         approximately $2.5 million, to cover 100% of NAG's estimated
         requirements through 1999 and 33% of the estimated requirements
         for the first quarter of 2000.  Management believes this zinc
         procurement program ensures adequate supplies of zinc and stable
         gross margins from its galvanizing operations.  With respect
         to the zinc purchase commitments, a potential decrease of 10% in
         the market price of zinc from the September 30, 1999 level
         would cause a lost gross margin opportunity of approximately
         $250,000.  However, a favorable impact of a similar amount would
         result from the same hypothetical price movement in the short-term
         spot purchases of zinc.

         On October 12, 1999, Lake River Corporation ("Lake River") received
         notice from a customer of a claim for a material amount to recover
         costs arising from Lake River's alleged shipment of the wrong
         product in May of 1999.  The Company maintains insurance for claims
         of this nature.  The Company and its insurance carrier have not made
         a final determination of the amount of the claim, nor assessed the
         potential joint responsibility of the parties involved.  Accordingly,
         the ultimate amount of the claim is not determinable at this time;
         however, the Company's insurance should cover any such loss.

         Various litigation arising in the ordinary course of business is
         pending against the Company.

         Management believes that resolution of the Company's litigation and
         environmental matters should not materially affect the Company's
         consolidated financial position or liquidity.  Should future
         developments cause the Company to record an additional liability
         for environmental evaluation, clean-up or litigation, the recording
         of such a liability could have a material impact on the results of
         operations for the period involved.

                                     -9-

NOTE 7.  TREASURY STOCK
         --------------
         In 1998, the Board of Directors authorized the Company to
         repurchase up to $1,000,000 of its common stock in open market
         transactions.  Shares repurchased by the Company are recorded as
         "Treasury Stock" and result in a reduction of "Stockholders'
         Equity."  As of September 30, 1999, the Company had purchased 66,000
         shares of its common stock for an aggregate cost of approximately
         $168,000 under this program, including 55,300 shares for $139,000
         in 1999.

NOTE 8.  PROPERTIES
         ----------
         As reported previously, Lake River has operating facilities
         located on approximately 50 acres situated on the Chicago Ship
         Canal in Cook County, Illinois, which are leased as multiple
         parcels from the Metropolitan Water Reclamation District of
         Greater Chicago ("MWRD"), a municipal corporation.  These multiple
         leases have various terms with the earliest expiring at the end of
         1999.  Lake River and MWRD have agreed to renegotiate certain of
         these leases and under procedures required by MWRD, the
         renegotiation process will be opened to competitive bid.  While
         it cannot be known with certainty, Lake River believes that it is
         likely to be the successful bidder for all of the parcels
         required for the continuing conduct of its terminal storage business.

NOTE 9.  SEGMENT DISCLOSURES
         -------------------
         The Company is engaged principally in hot dip galvanizing and also
         conducts business in bulk liquid chemical storage and public
         warehousing.  The services provided by the Company's wholly-owned
         subsidiaries are classified into the following industry segments:
         Galvanizing, Chemical Storage and Warehousing.  Operating
         performance is measured by segment sales and operating earnings
         which includes operating costs, selling and administrative expenses,
         depreciation and amortization.  All of the Company's revenues are
         derived from sales to customers located within the United States
         and there are no inter-segment sales.  The galvanizing segment
         provides corrosion protection for customers' fabricated iron and
         steel structures through the process of immersing the structure into a
         bath of molten zinc.  The chemical storage segment operates a bulk
         liquid terminal for the storage of customers' products and also
         provides specialty chemical bagging and drumming services.  The
         warehousing segment provides public warehousing space, primarily
         for commercial and industrial dry good products.  Corporate
         headquarters expenses were primarily for insurance premiums, audit
         and legal fees, investor relations, travel, voice and data
         communications and salaries.  The corporate headquarters staff is
         comprised of six persons, including the officers of the Company.
         In the first quarter of 1998, other deductions of $183,000 were
         incurred for environmental settlements in the galvanizing segment.

                                     -10-

<TABLE>
<CAPTION>
                             THREE MONTHS ENDED                 NINE MONTHS ENDED
                                SEPTEMBER 30                      SEPTEMBER 30
                         --------------------------       -----------------------------
(Dollars in Thousands)       1999           1998              1999              1998
----------------------------------------------------------------------------------------
<S>                   <C>      <C>     <C>      <C>    <C>       <C>     <C>      <C>
Sales
Galvanizing           $ 9,800   85.2%  $10,091   82.7%  $29,130   84.3%  $30,102   80.8%
Chemical storage        1,210   10.5%    1,222   10.0%    3,855   11.2%    4,003   10.7%
Warehousing               494    4.3%      893    7.3%    1,557    4.5%    3,175    8.5%
-----------------------------------------------------------------------------------------
                      $11,504  100.0%  $12,206  100.0%  $34,542  100.0%  $37,280  100.0%
-----------------------------------------------------------------------------------------
OPERATING EARNINGS
Galvanizing           $ 1,121          $   604          $ 2,74           $ 2,415
Chemical storage           88               13             476               205
Warehousing               (69)             122             (77)              532
Corporate
 headquarters expense    (336)            (488)         (1,084)           (1,353)
Other deductions, net    ----              ---             ---              (183)
-----------------------------------------------------------------------------------------
                          804              251           2,064             1,616
-----------------------------------------------------------------------------------------
Interest expense          171              159             522               485
Other income             ----              ---             ---              (309)
-----------------------------------------------------------------------------------------
                          171              159             522               176
-----------------------------------------------------------------------------------------

Income tax expense        271               40             662               665
-----------------------------------------------------------------------------------------
NET EARNINGS          $   362          $    52         $   880           $   775
-----------------------------------------------------------------------------------------

Capital Expenditures
Galvanizing           $ 1,838          $   966         $ 3,784           $ 2,298
Chemical storage           58               12             157               127
Warehousing                 5                2              29                 3
General corporate        ----               23               3                65
-----------------------------------------------------------------------------------------
                      $ 1,901          $ 1,003         $ 3,973           $ 2,493
-----------------------------------------------------------------------------------------


DEPRECIATION AND AMORTIZATION EXPENSE
Galvanizing           $   645          $   588         $ 1,864           $ 1,708
Chemical storage           88              145             276               396
Warehousing                21               30              55                69
General corporate          10               16              26                44
-----------------------------------------------------------------------------------------
                      $   764          $   779         $ 2,221           $ 2,217
-----------------------------------------------------------------------------------------
                               September 30, 1999    December 31, 1998
                               ------------------    -----------------
TOTAL ASSETS
Galvanizing                            $30,357         $28,380
Chemical storage                         2,280           2,516
Warehousing                                494             680
General corporate                        1,595           1,532
----------------------------------------------------------------------------------------
                                       $34,726         $33,108
-----------------------------------------------------------------------------------------
</TABLE>
                                     -11-


                       KINARK CORPORATION AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS


RESULTS OF OPERATIONS

CONSOLIDATED

     Kinark's net earnings improved in the third quarter of 1999 despite lower
sales in all of its business segments.  Net earnings for the third quarter of
1999 were $362,000, or $.05 per share, compared to net earnings of $52,000, or
$.01 per share in the third quarter of 1999.  For the nine month period ended
September 30, net earnings were $880,000, or $.13 per share, in 1999 versus
$775,000, or $.11 per share, in 1998.  Operating earnings for the third
quarter of 1999 increased 220% to $804,000 compared to $251,000 for the same
period in 1998.  For the nine months ended September 30, 1999, operating
earnings increased 28% to $2,064,000 compared to $1,616,000 for the first nine
months of 1998.

     Sales for the third quarter of 1999 were $11,504,000, a decrease of 5.8%
from $12,206,000 for the same period in 1998.  For the first nine months of
1999, sales decreased 7.3% to $34,542,000 form $37,280,000 for the comparable
period a year ago.  The decrease in 1999 sales results primarily from a
reduction of the customer base for the warehousing segment; while sales in the
chemical storage and galvanizing segments are down from 1998, both segments
narrowed the year-to-year sales difference in the third quarter of 1999.

     Gross profit margin increased to 26.8% for the third quarter ended
September 30, 1999 compared to 22.1% for the same period of 1998.  For the
first nine months of 1999, gross profit margin was 26.5% compared to 24.3% a
year ago.  The third-quarter 1999 increase in gross profit margin was driven
by solid profit improvement in the galvanizing segment over 1998 results.  For
the nine months, galvanizing and chemical storage achieved higher gross profit
margins over 1998 through improvements in productivity and lower indirect
costs.

     Selling, general and administrative expenses ("SG&A") for the third
quarter of 1999 decreased 9.2% to $1,512,000 from $1,665,000 in the same
period a year ago, reflecting the company's continuing efforts to reduce
overhead in all of the business segments and corporate office.  SG&A expenses
of $4,858,000 for the first nine months of 1999 were down 7.4% from $5,248,000
in 1998.

     Net interest expense was $522,000 for the nine months ended September 30,
1999 compared to $485,000 for the same period of 1998, reflecting higher
average borrowings for working capital and capital expenditure programs.  The
company's effective income tax rate for the first nine months of 1999 was
42.9% compared to 46.2% for the same period in 1998.  The rates were higher
than federal statutory rates primarily due to non-deductible amortization of
goodwill and state income taxes.

                                     -12-

GALVANIZING SEGMENT

     NORTH AMERICAN GALVANIZING COMPANY ("NAG").   Operating income of
$1,121,000 for the third quarter of 1999 increased 85.6% from $604,000 in the
third quarter of 1998.  Improvements in labor productivity and zinc-use
efficiency primarily accounted for the increase in operating income, and
reflect NAG's on-going programs for improving underlying profit margins.  For
the first nine months of 1999, operating income was $2,749,000 compared to
$2,415,000 a year ago.  Galvanizing sales of $9,800,000 for the third quarter
of 1999 were down 2.9% from $10,091,000 in the third quarter of 1998.  For the
first nine months of 1999, sales of $29,130,000 were down 3.2% from
$30,102,000 in 1998.  During the third quarter of 1999, increased business
activity drove production tonnage ahead of 1998 for the first time this year
but competitive pricing pressures more than offset the gains in volume.  NAG's
multi-plant operation continues to benefit from market strength in tubular
steel products, steel structures for telecommunications, and infrastructure
projects involving utilities and highway transportation.  In August 1999, NAG
completed a major facilities expansion at its Nashville plant, adding a larger
51-foot kettle to increase capacity and meet the requirements of the market in
the Southeast.

CHEMICAL STORAGE SEGMENT

     LAKE RIVER CORPORATION ("LAKE RIVER").  Operating income for the third
quarter of 1999 was $88,000 versus $13,000 in the third quarter of 1998.  For
the first nine months of 1999, operating income was $476,000 compared to
$205,000 for the same period a year ago.  Third-quarter 1999 sales of
$1,210,000 were approximately even with 1998 sales of $1,222,000.  For the
first nine months of 1999, sales of $3,855,000 were down 3.7% from $4,003,000
for the same period of 1998 as a result of lower drumming activity for
domestic and Asian markets.  Strength in bulk liquid storage, up 17.1% in
volume over the first nine months of 1998, and reductions in SG&A expenses
have contributed to this segment's profit improvement over 1998.

WAREHOUSING SEGMENT

     NORTH AMERICAN WAREHOUSING COMPANY ("NAW").  Declining sales in the third
quarter of 1999 were reflected in this segment's operating loss of $69,000
compared to operating income of $122,000 in the third quarter of 1998.  For
the first nine months of 1999, NAW incurred an operating loss of $77,000
compared to operating income of $532,000 in the first nine months of 1998.
Sales in the third quarter of 1999 were $494,000 compared to $893,000 for the
third quarter of 1998.  For the first nine months of 1999, warehousing sales
were $1,557,000 compared to $3,175,000 for the same period in 1998.  As
previously reported, the decrease in sales commencing mid-1998 primarily
reflects the loss of a major customer that relocated its warehousing outside
of NAW's regional service area.  The company is exploring ways to increase
sales to improve the performance of this segment, including adding regional
distribution services, but cannot predict when and to what extent these
efforts will be successful.

                                     -13-

LIQUIDITY AND CAPITAL RESOURCES

     Net cash provided by operating activities improved to $2,924,000 for the
first nine months of 1999, up 29.3% from $2,261,000 for the same period in
1998.  The improvement in cash generated in 1999 reflected the combination of
stronger operating earnings, a reduction in net working capital requirements
and the utilization of deferred tax benefits arising from prior periods.  The
Company's operations required net working capital of $6,822,000 at September
30, 1999, virtually unchanged from the second quarter of 1999 and reduced 3.5%
from $7,070,000 at the beginning of the year.

     During the first nine months of 1999, proceeds from operating activities
and the sale of investment securities were used to fund the majority of the
Company's capital expenditures of $3,973,000.  A substantial portion of these
expenditures were made in the third quarter to complete the facilities
expansion at NAG's Nashville, Tennessee plant.  Other uses of cash in the
first nine months of 1999 included the purchase of approximately 52,000 shares
of the Company's common stock for $139,000.  Separately, during the same
period, the company sold all of its investment securities and realized cash of
$510,000.

     During the first nine months of 1999, the Company made payments on
long-term obligations of $21,361,000 and received proceeds from long-term
obligations of $21,971,000 for a net increase of $610,000 in total long-term
obligations.  The Company's current credit facility consists of a $9,000,000
revolving line of credit, a term note of $4,200,000, a $1,500,000 capital
expenditures revolver and a $9,000,000 bridge loan facility, under a
three-year bank credit agreement that expires September 30, 2002.  The
Company's availability under the revolving line of credit was $1,768,000 at
September 30, 1999.  The Company believes cash flow from operations and
available credit facilities is sufficient to meet its foreseeable needs for
working capital and planned capital expenditures.

ENVIRONMENTAL MATTERS

     NAG received notice in 1997 from the Illinois Environmental Protection
Agency ("IEPA") that it was a potentially responsible party under the
Comprehensive Environmental Response, Compensation, and Liability Information
System ("CERCLIS") in connection with cleanup of an abandoned site formerly
owned by Sandoval Zinc Co.  Sandoval had operated a secondary zinc smelter at
the site until it closed in 1985.  The IEPA notice includes NAG as one of 59
organizations which arranged for the treatment and disposal of hazardous
substances at Sandoval.  The Company is in the process of determining the
proportional share of substances that NAG shipped to Sandoval, and does not
believe based on current information that the ultimate resolution of this
matter will have a material adverse impact on the Company's financial position
or results of operations.

     The Company's facilities are subject to extensive environmental
legislation and regulations affecting their operations and the discharge of
wastes.  The cost of compliance with such regulations in the first nine months
of 1999 and 1998 was $601,000 and $736,000, respectively.  The disposal and
recycling of waste acids generated by the galvanizing operations represents
the major expenditure in this area.  The Company operates on-site sulphuric
acid recovery systems at three of its galvanizing plants.

                                     -14-

     The Company's other galvanizing plants use hydrochloric acid, which
requires the off-site disposal of waste acids.  Due to the increasing cost of
waste disposal and decreasing availability of approved disposal methods, NAG
is continuing to evaluate alternative waste hydrochloric acid recycling
methods.  Future capital expenditures in this area are expected to increase,
but such expenditures should significantly reduce waste acid disposal expense.

     Environmentally related expenditures at Lake River continue to represent
a relatively small percentage of the Company's total costs.  The majority of
waste disposal costs at Lake River are incurred on behalf of customers and are
reimbursable.  Lake River does not take title to the chemicals stored,
blended, drummed or bagged in its facilities and thus is responsible only for
the proper handling of these materials while under its care, custody, and
control.

     The Company is committed to complying with all federal, state and local
environmental laws and regulations and using its best management practices to
anticipate and satisfy future requirements.  As is typical in the galvanizing
and chemicals businesses, the Company will have additional environmental
compliance costs associated with past, present, and future operations.
Management has committed resources to discovering and eliminating
environmental issues as they arise.  Because of the frequent changes in
environmental technology, laws and regulations management cannot reasonably
attempt to quantify the Company's potential costs in this area.  However, such
costs are expected to increase above their current levels as discussed above.

YEAR 2000 READINESS

     STATE OF READINESS.  Like many companies that rely on computer
technology, Kinark is preparing for the year 2000 by taking steps to insure
that its computers can recognize and use years after 1999 correctly.  If such
a situation were to exist and not be corrected, Year 2000 errors could affect
the Company's ability to invoice customers and pay vendors in a timely manner
and to maintain accurate financial records.  The Company has been working on
the resolution of Year 2000 issues since 1996.  The Company believes that its
primary computer systems serving the corporate headquarters and its
galvanizing operations are structured to accommodate the Year 2000 and beyond,
and the operation of these systems should not be affected by the millennium
change.  Galvanizing contributes approximately 84% of Kinark's consolidated sale
s.  Computer systems serving Kinark's chemical storage and warehousing
operations are in the process of being upgraded to be Year 2000 compliant
during the fourth quarter of 1999.

     COST OF ADDRESSING YEAR 2000 ISSUES.  Kinark's cost to date of addressing
Year 2000 issues is approximately $200,000, and the on-going assessment and
resolution of such issues should not exceed an additional $50,000.  Future
expenditures to make Kinark's computer systems Year 2000 compliant are not
expected to have a material impact on the results of the Company's operations,
liquidity, and capital resources.

     RISKS OF YEAR 2000 ISSUES.  Kinark has substantially determined the state
of Year 2000 compliance by its key suppliers of zinc, the primary commodity
required for its hot dip galvanizing operations.  Kinark historically has not
relied on a sole-source supply for its zinc requirements and expects to
continue that practice.  In addition, Kinark's operations are dependent on

                                     -15-

reliable supplies of electricity and natural gas.  Going forward, Kinark will
be monitoring the progress of its key vendors, as well as its major customers,
service providers and utilities in addressing their Year 2000 issues, and
expects this assessment to be completed during the fourth quarter of 1999.  An
assessment of the "most reasonably likely worst case Year 2000 scenarios" for
Kinark would consider (a) the failure of the Company's computer systems and
(b) disruption of production operations due to computer failures encountered
by a customer, supplier or utility.  With respect to failure of the Company's
computers, the worst case impact would be the additional cost to manually
process daily business operations and attendant delays in completing those
operations.  Kinark does not believe such additional costs would have a
material impact on its operations.  With respect to a disruption of Kinark's
production operations due to a customer's, supplier's or utility's failure to
be Year 2000 compliant, the extent of such disruption is not reasonably
estimable.  Kinark's operations are conducted in widely-disbursed facilities,
serving more than 2,000 commercial and industrial accounts, and the Company
believes this diversity of its operations will help mitigate the risk of a
customer's, supplier's or utility's Year 2000 failure.

     CONTINGENCY PLANS.  Kinark expects to complete a contingency plan in the
fourth quarter of 1999 to handle "the most reasonably likely worst case
scenarios" as discussed above.  With respect to a computer failure that might
affect administrative and production operations, the plan (a) will identify key
functions, such as production scheduling, customer billing, payroll, and
accounts payable; (b) will determine the availability of and provide for
alternative equipment necessary to manually handle those functions;
(c) identify staff personnel qualified for temporary re-assignment to assist
in the manual operations and where necessary, (d) authorize the hiring of
temporary personnel.  In the event of the loss of availability of natural gas,
electricity or zinc supplies required for production operations, the plan will
address contingency measures for each of its operating plants.  Such measures
will include steps to minimize heat loss from kettles containing molten zinc;
time lines for pumping out kettles to maintain kettle structural integrity and
facilitate rapid start-up of the kettle when utilities are re-established
and, designation of alternative sister-plants for the transfer of production
to maintain continuity of deliveries to customers.  The plan will address
alternate methods of receiving delivery of zinc used in the galvanizing
process, including use of Company trucks, in the event normal delivery
services are disrupted.  Guidelines for stock levels of zinc inventory will
be reviewed.  For those operations requiring regulation of temperature for
storage of bulk liquid products, stock levels of fuel used in company-operated
steam boilers will be reviewed.

                                     -16-

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     Kinark's current operations include managing market risks related to
changes in interest rates and zinc commodity prices.

     INTEREST RATE RISK.  Kinark is exposed to financial market risk related
to changing interest rates.  Changing interest rates will affect interest paid
on Kinark's variable rate revolving and term debt.   Amounts borrowed under
this agreement bear interest at prime or LIBOR, at the option of the Company,
subject to rate margin adjustments (see Note 5 to Condensed Consolidated
Financial Statements).  At September 30, 1999, $9,481,000 was outstanding
under the agreement with an effective rate of 8.25%.  The borrowings are due
as follows: $171,000 in 1999 and $723,000 in 2000, $784,000 in 2001 and
$7,803,000 in 2002.   Each increase of 10 basis points in the effective
interest rate would result in an annual increase in interest charges of
approximately $9,500 based on September 30, 1999 outstanding borrowings.  The
actual effect of changes in interest rates is dependent on actual amounts
outstanding which vary under the revolving credit facility.  The Company
monitors interest rates and has sufficient flexibility to renegotiate the loan
agreement, without penalty, in the event market conditions and interest rates
change.

     ZINC PRICE RISK.  NAG enters into purchase commitments with domestic and
foreign zinc producers to purchase certain of its zinc requirements for its
hot dip galvanizing operations.  Commitments for the future delivery of zinc
reflect rates quoted on the London Metals Exchange which are not subject to
future price adjustment.  At September 30, 1999, the aggregate commitments for
the procurement of zinc were approximately $2.5 million, primarily to cover
100% of NAG's estimated requirements for the remainder of 1999 and 33% of the
estimated requirements for the first quarter of 2000.  Management believes
this zinc procurement program ensures adequate supplies of zinc and stable
gross margins from its galvanizing operations.  With respect to the zinc
purchase commitments, a potential decrease of 10% in the market price of zinc
from the September 30, 1999 level would cause a lost gross margin opportunity
of approximately $250,000.  However, a favorable impact of a similar amount
would result from the same hypothetical price movement on the short-term spot
purchases of zinc.

                                     -17-


                                   PART II

                              OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS
         -----------------
         Not applicable.

ITEM 2.  CHANGES IN SECURITIES
         ---------------------
         Not applicable.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES
         -------------------------------
         Not applicable.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
         ---------------------------------------------------
         Not applicable.

ITEM 5.  OTHER INFORMATION
         -----------------
         Not applicable.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K
         --------------------------------
         (a)Exhibits

            3.1  The Company's Restated Certificate of
                 Incorporation (incorporated by reference to
                 Exhibit 3.1 to the Company's
                 Pre-Effective Amendment No. 1 to
                 Registration Statement on Form S-3
                 (Reg. No. 333-4937) filed on June 7, 1996).

            3.2  The Company's Amended and Restated Bylaws
                 (incorporated by reference to Exhibit 3.2
                 to the Company's Quarterly Report on
                 Form 10-Q dated March 31, 1996).

            27   Financial Data Schedule

            99   Cautionary Statements by the Company Related to
                 Forward-Looking Statements

                                     -18-

        (b) Reports on Form 8-K

            The Company did not file any reports on Form 8-K
            during the quarter ended September 30, 1999.

                                     -19-


                                  SIGNATURES


Pursuant to the requirements of Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized:



                                          KINARK CORPORATION
                                       -----------------------
                                              Registrant



                                          /S/Paul R. Chastain
                                        -----------------------
                                            Paul R. Chastain
                                           Vice President and
                                         Chief Financial Officer
                                      (Principal Financial Officer)


Date:   November 12, 1999
        -----------------

                                     -20-


                                 EXHIBIT INDEX

Ex. No.  Description

  3.1    The Company's Restated Certificate of Incorporation (incorporated by
         reference to Exhibit 3.1 to the Company's Pre-Effective Amendment
         No. 1 to Registration Statement on Form S-3 (Reg. No. 333-4937) filed
         on June 7, 1996).

  3.2    The Company's Amended and Restated Bylaws (incorporated by reference
         to Exhibit 3.2 to the Company's Quarterly Report on Form 10-Q dated
         March 31, 1996).

   27    Financial Data Schedule

   99    Cautionary Statements by the Company Related to Forward-Looking
         Statements.