| ý   | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934. |
|--------------------|----------------------------------------------------------------------------------------------------|

|  ̈   | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ACT OF      1934. |
|--------------------|--------------------------------------------------------------------------------------------|

| Missouri(State      or other jurisdiction ofincorporation      or organization)                      | 43-1309065(I.R.S.      EmployerIdentification      No.) |
|------------------------------------------------------------------------------------------------------|---------------------------------------------------------|
|                                                                                                 |                                                    |
| 411      Fountain Lakes Blvd.St.      Charles, Missouri(Address      of principal executive offices) |  63301(Zip      Code)                              |

----

|                                             | Page      No.                                                                                                                           |
|--------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|
| Item 1.                                          | Financial Statements      (unaudited).                                                                                             |   |
|                                             | Condensed Consolidated Balance Sheets as      of September 30, 2008 and December 31, 2007.                                         | 3 |
|                                             | Condensed Consolidated Statements      of Operations for the three months and nine months ended September 30,      2008 and 2007.  | 4 |
|                                             | Condensed Consolidated Statements of      Cash Flows for the nine months ended September 30, 2008 and      2007.                   | 5 |
|                                             | Notes to Condensed Consolidated Financial      Statements.                                                                         | 6 |
| Item 2.                                     | Management’s      Discussion and Analysis of Financial Condition and Results      of Operations.                             | 14 |
| Item 3.                                          | Quantitative and Qualitative Disclosures      About Market Risk.                                                                   | 22 |
| Item 4                                           | Controls and Procedures.                                                                                                           | 22 |
| PART      II.  OTHER INFORMATION  |
| Item 1.                                          | Legal Proceedings.                                                                                                                 | 23 |
| Item 1A.                                         | Risk Factors.                                                                                                                      | 23 |
| Item 2.                                          | Unregistered Sales of Equity Securities and Use of      Proceeds.                                                                  | 23 |
| Item 3.                                | Defaults Upon Senior      Securities.                                                                                              | 23 |
| Item 4.                                | Submission of Matters to a Vote of Security      Holders.                                                                          | 23 |
| Item 5.                                     | Other Information.                                                                                                                 | 23 |
| Item 6.                                     | Exhibits.                                                                                                                          | 23 |
| SIGNATURE PAGE                              | 24                                                                                                                                      |
| EXHIBIT INDEX                                    | 25                                                                                                                                      |

----

FINANCIAL INFORMATION

Condensed Consolidated BalanceSheets

|                                                                                                                                                                                           | (Unaudited)             |   |    |                   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|--------|---------|------------------------|--------|
|                                                                                                                                                                                           | September      30, 2008 |   |    | December      31, 2007 |   |
| Assets                                                                                                                                                                                         |                    |   |    |                   |   |   |
| Current      assets:                                                                                                                                                                           |                    |   |    |                   |   |   |
| Cash      and cash equivalents                                                                                                                                                                 |                    | $      | 222     |                   |   | $ | 82 |   |
| Trade      accounts receivable, net of allowance of $233 at September 30,      2008 and $292 at December 31, 2007                                                                              |                    |   | 29,674  |                   |   |   | 29,588 |   |
| Inventories,      net                                                                                                                                                                          |                    |   | 53,231  |                   |   |   | 40,940 |   |
| Prepaid      expenses and other current assets                                                                                                                                                 |                    |   | 2,208   |                   |   |   | 2,135 |   |
| Deferred      income taxes                                                                                                                                                                     |                    |   | 3,236   |                   |   |   | 3,483 |   |
| Income      taxes receivable                                                                                                                                                                   |                    |   | 297     |                   |   |   | 630 |   |
| Total      current assets                                                                                                                                                                      |                    |   | 88,868  |                   |   |   | 76,858 |   |
|                                                                                                                                                                                           |                    |   |    |                   |   |   |   |   |
| Property,      plant and equipment, net                                                                                                                                                        |                    |   | 21,944  |                   |   |   | 19,733 |   |
| Goodwill                                                                                                                                                                                       |                    |   | 48,561  |                   |   |   | 48,670 |   |
| Customer      intangible assets, net                                                                                                                                                           |                    |   | 18,349  |                   |   |   | 19,428 |   |
| Other      assets                                                                                                                                                                              |                    |   | 1,257   |                   |   |   | 1,429 |   |
| Total      assets                                                                                                                                                                              |                    | $      | 178,979 |                   |   | $ | 166,118 |   |
|                                                                                                                                                                                           |                    |   |    |                   |   |   |   |   |
| Liabilities      and shareholders’ equity                                                                                                                                                |                    |   |    |                   |   |   |   |   |
| Current      liabilities:                                                                                                                                                                      |                    |   |    |                   |   |   |   |   |
| Accounts      payable                                                                                                                                                                          |                    | $      | 9,103   |                   |   | $ | 10,681 |   |
| Accrued      expenses                                                                                                                                                                          |                    |   | 11,574  |                   |   |   | 9,997 |   |
| Short-term      deferred gain on sale of real estate                                                                                                                                           |                    |   | 233     |                   |   |   | 233 |   |
| Current      installments of long-term debt and capital lease    obligations                                                                                                                   |                    |   | 554     |                   |   |   | 775 |   |
| Total      current liabilities                                                                                                                                                                 |                    |   | 21,464  |                   |   |   | 21,686 |   |
|                                                                                                                                                                                           |                    |   |    |                   |   |   |   |   |
| Long-term      deferred gain on sale of real estate                                                                                                                                            |                    |   | 3,598   |                   |   |   | 3,773 |   |
| Long-term      debt and capital lease obligations, less current    installments                                                                                                                |                    |   | 25,774  |                   |   |   | 29,022 |   |
| Deferred      income taxes                                                                                                                                                                     |                    |   | 6,810   |                   |   |   | 6,810 |   |
| Total      long-term liabilities                                                                                                                                                               |                    |   | 36,182  |                   |   |   | 39,605 |   |
|                                                                                                                                                                                           |                    |   |    |                   |   |   |   |   |
| Shareholders’      equity:                                                                                                                                                               |                    |   |    |                   |   |   |   |   |
| Common      stock, $0.02 par value per share; authorized 28,000,000 shares;      issued 11,885,028 shares and 11,820,057 shares at September      30, 2008 and December 31, 2007, respectively |                    |   | 238     |                   |   |   | 236 |   |
| Preferred      stock, $0.02 par value per share; authorized 2,000,000 shares;      none issued in both periods                                                                                 |                    |   | -       |                   |   |   | - |   |
| Additional      paid-in capital                                                                                                                                                                |                    |   | 68,976  |                   |   |   | 67,244 |   |
| Treasury      stock, at cost, 364,588 shares at September 30, 2008 and 385,688      shares at December 31, 2007                                                                                |                    |   | (1,730  | )                      |   |   | (1,830 | ) |
| Retained      earnings                                                                                                                                                                         |                    |   | 53,849  |                   |   |   | 39,177 |   |
| Total      shareholders’ equity                                                                                                                                                          |                    |   | 121,333 |                   |   |   | 104,827 |   |
| Total      liabilities and shareholders’ equity                                                                                                                                          |                    | $      | 178,979 |                   |   | $ | 166,118 |   |
|                                                                                                                                                                                           |                    |   |    |                   |   |   |   |   |
| See      accompanying notes to condensed consolidated financial      statements.                                                                                                               |                    |

----

Condensed Consolidated Statements ofOperations

|                                                                             |   |                    |       |   |                   |   |       |   |   |   |       |   |
|----------------------------------------------------------------------------------|--------|-------------------------|------------|--------|------------------------|--------|------------|--------|--------|--------|------------|--------|
|                                                                             |   | Three      Months Ended |       |   | Nine      Months Ended |   |
|                                                                             |   | September      30,      |       |   | September      30,     |   |
|                                                                             |   | 2008                    |       |   | 2007                   |   |       | 2008   |   |   | 2007       |   |
|                                                                             |   |                    |       |   |                   |   |       |   |   |   |       |   |
| Net      sales                                                                   |   | $                       | 61,941     |   |                   | $      | 47,795     |   |   | $      | 187,262    |   |   | $ | 113,906 |   |
| Cost      of sales                                                               |   |                    | 45,058     |   |                   |   | 34,494     |   |   |   | 138,085    |   |   |   | 83,117 |   |
| Gross      profit                                                                |   |                    | 16,883     |   |                   |   | 13,301     |   |   |   | 49,177     |   |   |   | 30,789 |   |
|                                                                             |   |                    |       |   |                   |   |       |   |   |   |       |   |   |   |   |   |
| Selling,      general and administrative expenses                                |   |                    | 8,329      |   |                   |   | 6,396      |   |   |   | 24,714     |   |   |   | 16,338 |   |
| Income      from operations                                                      |   |                    | 8,554      |   |                   |   | 6,905      |   |   |   | 24,463     |   |   |   | 14,451 |   |
|                                                                             |   |                    |       |   |                   |   |       |   |   |   |       |   |   |   |   |   |
| Other      income (expense):                                                     |   |                    |       |   |                   |   |       |   |   |   |       |   |   |   |   |   |
| Interest      income (expense), net                                              |   |                    | (407       | )      |                   |   | (650       | )      |   |   | (1,366     | )      |   |   | (258 | ) |
| Other,      net                                                                  |   |                    | 3          |   |                   |   | (2         | )      |   |   | (5         | )      |   |   | (25 | ) |
| Income      before income taxes                                                  |   |                    | 8,150      |   |                   |   | 6,253      |   |   |   | 23,092     |   |   |   | 14,168 |   |
|                                                                             |   |                    |       |   |                   |   |       |   |   |   |       |   |   |   |   |   |
| Provision      for income taxes                                                  |   |                    | 2,970      |   |                   |   | 2,068      |   |   |   | 8,409      |   |   |   | 4,851 |   |
| Net      income                                                                  |   | $                       | 5,180      |   |                   | $      | 4,185      |   |   | $      | 14,683     |   |   | $ | 9,317 |   |
|                                                                             |   |                    |       |   |                   |   |       |   |   |   |       |   |   |   |   |   |
| Amounts      per common share:                                                   |   |                    |       |   |                   |   |       |   |   |   |       |   |   |   |   |   |
| Net      income per common share                                                 |   | $                       | 0.46       |   |                   | $      | 0.38       |   |   | $      | 1.31       |   |   | $ | 0.84 |   |
|                                                                             |   |                    |       |   |                   |   |       |   |   |   |       |   |   |   |   |   |
| Net      income per common share assuming dilution                               |   | $                       | 0.46       |   |                   | $      | 0.37       |   |   | $      | 1.30       |   |   | $ | 0.83 |   |
|                                                                             |   |                    |       |   |                   |   |       |   |   |   |       |   |   |   |   |   |
| Weighted      average common shares outstanding                                  |   |                    | 11,196,861 |   |                   |   | 11,157,959 |   |   |   | 11,227,970 |   |   |   | 11,155,041 |   |
|                                                                             |   |                    |       |   |                   |   |       |   |   |   |       |   |   |   |   |   |
| Weighted      average dilutive common shares outstanding                         |   |                    | 11,326,771 |   |                   |   | 11,291,108 |   |   |   | 11,350,022 |   |   |   | 11,279,643 |   |
|                                                                             |   |                    |       |   |                   |   |       |   |   |   |       |   |   |   |   |   |
| See      accompanying notes to condensed consolidated financial      statements. |   |

----

Condensed Consolidated Statements of CashFlows

|                                                                             |                                   |   |                                                                                          |                                                                                                     |   |   |                                                                                                     |                                                                                          |   |
|----------------------------------------------------------------------------------|----------------------------------------|--------|-----------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|--------|
|                                                                             |                                   |   | Nine      Months Ended September 30,                                                          |                                                                                                     |
|                                                                             |                                   |   | 2008                                                                                          |                                                                                                     | 2007   |
| Operating      activities:                                                       |                                   |   |                                                                                          |                                                                                                     |   |   |                                                                                                     |                                                                                          |
| Net      income                                                                  |                                   |   | $                                                                                             |           14,683                                       |   |   | $                                                                                                        |           9,317                             |   |
| Adjustments      to reconcile net income to                                      |                                   |   |                                                                                          |                                                                                                     |   |   |                                                                                                     |                                                                                          |
| net      cash provided (used) by operating activities:                           |                                   |   |                                                                                          |                                                                                                     |   |   |                                                                                                     |                                                                                          |
| Depreciation      and amortization                                               |                                   |   |           4,950                             |                                                                                                     |   |   |           3,081                                        |                                                                                          |
| Charges      for bad debt expense                                                |                                   |   |                71  |                                                                                                     |   |   |              195                        |                                                                                          |
| Charges      for inventory obsolescence and valuation                            |                                   |   |              814             |                                                                                                     |   |   |              516                        |                                                                                          |
| Restricted      stock compensation                                               |                                   |   |           1,981                             |                                                                                                     |   |   |              566                        |                                                                                          |
| Changes      in operating assets and liabilities:                                |                                   |   |                                                                                          |                                                                                                     |   |   |                                                                                                     |                                                                                          |
|                                                                             | Trade      accounts receivable         |   |                                                                                          |         (157)                                                    |   |   |                                                                                                     |          (8,903)                                 |   |
|                                                                             | Inventories                            |   |                                                                                          |        (13,105)                                                       |   |   |                                                                                                     |          (4,639)                                 |   |
|                                                                             | Prepaid      expenses and other assets |   |                                                                                          |                  45 |   |   |                                                                                                     |             (743)                 |   |
|                                                                             | Income      taxes                      |   |                                                                                          |              954                        |   |   |                                                                                                     |             530                   |   |
|                                                                             | Accounts      payable                  |   |                                                                                          |          (1,578)                                            |   |   |                                                                                                     |          (1,110)                                 |   |
|                                                                             | Accrued      expenses                  |   |                                                                                          |           956                                          |   |   |                                                                                                     |              787             |   |
| Net      cash provided (used) by operating activities                  |                                   |   |           9,614                             |                                                                                                     |   |   |          (1,977)                                            |                                                                                          |
|                                                                             |                                   |   |                                                                                          |                                                                                                     |   |   |                                                                                                     |                                                                                          |   |
| Investing      activities:                                                       |                                   |   |                                                                                          |                                                                                                     |   |   |                                                                                                     |                                                                                          |
| Additions      to property, plant and equipment                                  |                                   |   |         (6,061)                                       |                                                                                                     |   |   |          (5,197)                                            |                                                                                          |
| Proceeds      from sale of real estate                                           |                                   |   |                -   |                                                                                                     |   |   |           5,920                                        |                                                                                          |
| Proceeds      from sale of equipment                                             |                                   |   |                33  |                                                                                                     |   |   |              1,681                      |                                                                                          |
| Proceeds      from matured debt securities                                       |                                   |   | -                                                                                             |                                                                                                     |   |   |        2,243                                                          |                                                                                          |
| Acquisition      of D3 Technologies, Inc. net cash acquired                      |                                   |   | -                                                                                             |                                                                                                     |   |   |         (59,092)                                                 |                                                                                          |
| Other,      net                                                                  |                                   |   |                                                                                          |               (61)                 |   |   |                                                                                                     |             (200)                 |   |
| Net      cash used by investing activities                                       |                                   |   |         (6,089)                                       |                                                                                                     |   |   |        (54,645)                                                       |                                                                                          |
|                                                                             |                                   |   |                                                                                          |                                                                                                     |   |   |                                                                                                     |                                                                                          |   |
| Financing      activities:                                                       |                                   |   |                                                                                          |                                                                                                     |   |   |                                                                                                     |                                                                                          |
| Proceeds      from issuance of debt                                              |                                   |   |                73  |                                                                                                     |   |   |            39,380                                 |                                                                                          |
| Net      payments on revolving lines of credit                                   |                                   |   |          (2,919)                                 |                                                                                                     |   |   |           (6,500)                                      |                                                                                          |
| Principal      payments on long-term debt and notes payable                      |                                   |   |             (628)                 |                                                                                                     |   |   |             (328)                            |                                                                                          |
| Proceeds      from exercise of stock options                                     |                                   |   |                89  |                                                                                                     |   |   |                  14 |                                                                                          |
| Net      cash (used) provided by financing activities                  |                                   |   |          (3,385)                                 |                                                                                                     |   |   |           32,566                                       |                                                                                          |
|                                                                             |                                   |   |                                                                                          |                                                                                                     |   |   |                                                                                                     |                                                                                          |   |
| Net      increase (decrease) in cash and cash equivalents                        |                                   |   |              140             |                                                                                                     |   |   |        (24,056)                                                       |                                                                                          |
| Cash      and cash equivalents, beginning of year                                |                                   |   |                82  |                                                                                                     |   |   |         24,411                                                   |                                                                                          |
| Cash      and cash equivalents, end of quarter                                   |                                   | $      |                222 |                                                                                                     |   | $      |           355                                          |                                                                                          |
|                                                                             |                                   |   |                                                                                          |                                                                                                     |   |   |                                                                                                     |                                                                                          |   |
| Supplemental      disclosures of cash flow information:                          |                                   |   |                                                                                          |                                                                                                     |   |   |                                                                                                     |                                                                                          |
| Interest      paid                                                               |                                   |   | $                                                                                             |           1,384                                        |   |   | $                                                                                                        |                592 |   |
| Income      taxes paid, net                                                      |                                   | $      |           7,105                             |                                                                                                     |   | $      |           4,224                                        |                                                                                          |
|                                                                             |                                   |   |                                                                                          |                                                                                                     |   |   |                                                                                                     |                                                                                          |   |
| See      accompanying notes to condensed consolidated financial      statements. |

----

Notes to Condensed Consolidated FinancialStatements

----

|                            |   |                                            |   |   |                                           |   |
|---------------------------------|--------|-------------------------------------------------|--------|--------|------------------------------------------------|--------|
|                            |   | Three      Months Ended      September      30, |   |   | Nine      Months Ended      September      30, |   |
|                            |   | 2007                                            |   |   | 2007                                           |   |
|                            |   |                                            |   |   |                                           |   |
| Net      sales                  |   | $                                               | 52,947 |   |                                           | $      | 156,010 |   |
| Net      earnings               |   | $                                               | 4,029  |   |                                           | $      | 9,595 |   |
| Basic      earnings per share   |   | $                                               | 0.36   |   |                                           | $      | 0.86 |   |
| Diluted      earnings per share |   | $                                               | 0.36   |   |                                           | $      | 0.85 |   |

| Tangible      assets, exclusive of cash        |   | $      | 13,195 |   |
|------------------------------------------------|--------|--------|--------|--------|
| Intangible      assets, net of deferred taxes  |   |   | 12,056 |   |
| Goodwill                                       |   |   | 42,908 |   |
| Liabilities      assumed                       |   |   | (9,067 | )      |
| Cost      of acquisition, net of cash acquired |   | $      | 59,092 |   |

|                                       |   | September      30, 2008 |   | December      31, 2007 |
|--------------------------------------------|--------|-------------------------|--------|------------------------|
|                                       |   |                    |   |                   |   |   |   |   |
| Raw      materials                         |   | $                       | 7,541  |                   |   | $ | 6,764 |   |
| Work      in progress                      |   |                    | 10,705 |                   |   |   | 9,470 |   |
| Manufactured      and purchased components |   |                    | 13,290 |                   |   |   | 8,982 |   |
| Finished      goods                        |   |                    | 21,695 |                   |   |   | 15,724 |   |
| Total      inventories                     |   | $                       | 53,231 |                   |   | $ | 40,940 |   |
|                                       |   |                    |   |                   |   |   |   |   |

----

|                            |   | September      30, 2008 |    | December      31, 2007 |
|---------------------------------|--------|-------------------------|---------|------------------------|
|                            |   |                    |    |                   |   |   |   |   |
| Trademarks                      |   | $                       | 4,222   |                   |   |  $ | 4,222 |   |
| Customer      Intangible Assets |   |                    | 17,330  |                   |   |   | 17,330 |   |
| Accumulated      Amortization   |   |                    | (3,203) |                   |   |   | (2,124) |   |
| Intangible      assets, net     |   | $                       | 18,349  |                   |   |  $ | 19,428 |   |
|                            |   |                    |    |                   |   |   |   |   |

|                                                                                                                                                                             | September      30, 2008 |   | December      31, 2007 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|--------|------------------------|
|                                                                                                                                                                             |                    |   |                   |   |
| Capital      Lease Obligations                                                                                                                                                   | $                       | 396    |                   | $ | 636 |   |
| Revolving      lines of credit                                                                                                                                                   |                    | 25,114 |                   |   | 28,034 |   |
| Notes      payable, principal and interest payable monthly, at fixed      rates, ranging from 1.67% to 10.70% at September 30, 2008      and 1.67% to 7.20% at December 31, 2007 |                    | 818    |                   |   | 1,127 |   |
| Total      debt                                                                                                                                                                  |                    | 26,328 |                   | $ | 29,795 |   |
| Less      current installments                                                                                                                                                   |                    | 554    |                   |   | 775 |   |
| Total                                                                                                                                                                            | $                       | 25,774 |                   | $ | 29,022 |   |

----

| Type           | Balance                                  | Interest      Rate Reprice      Date | Base      Rate      | LIBOR      Rate     | Margin | Total      Rate |
|----------------|------------------------------------------|--------------------------------------|---------------------|---------------------|--------|-----------------|
| Base      Rate | $      114 | Not      Applicable                  | 5.00%               | Not      Applicable | 1.125% | 6.125%          |
| LIBOR          |    25,000                 | 02/04/09                             | Not      Applicable | 2.850%              | 1.125% | 3.975%          |
| Total          | $      25,114                            |                                 |                |                |   |            |

----

| Stock      Options                     |   | Shares                                                                                |   | Weighted      Average Exercise Price |                                                                                         |  Weighted      Average Remaining Contractual Life |          | Aggregate      Intrinsic Value |   |
|----------------------------------------|--------|---------------------------------------------------------------------------------------|--------|-------------------------------------------|---------------------------------------------------------------------------------------------------|--------------------------------------------------------|--------------------|--------------------------------|--------|
|                                   |   |                                                                                  |   |                                      |                                                                                              |                                                   |               |                           |   |   |   |
| Outstanding      at January 1, 2008    |   |     131,790                                                       |   | $                                         |              3.23                |                                              |               |                      |   |   |   |
| Granted                                |   |               - |   |                                      |                 - |                                              |               |                      |   |   |   |
| Exercised                              |   |      (21,100)                                                |   |                                      |              4.22                |                                              |               |                      |   |   |   |
| Forfeited      or expired              |   |           (800)                     |   |                                      |              3.11                |                                              |               |                      |   |   |   |
| Outstanding      at September 30, 2008 |   |     109,890                                                       |   | $                                         |              3.04                |                                              |  2.6      yrs |                      | $      |           1,876 |   |
|                                   |   |                                                                                  |   |                                      |                                                                                         |                                                   |          |                           |   |   |
|                                   |   |                                                                                  |   |                                      |                                                                                         |                                                   |          |                           |   |   |

|   | Range      of Exercise Prices |   | Number      of Outstanding      Options |   | Weighted      Average Remaining      Contractual      Life |   | Weighted      Average Exercise      Price |
|--------|-------------------------------|--------|-----------------------------------------|--------|------------------------------------------------------------|--------|-------------------------------------------|
|   | $1.31      - $1.95            |   | 12,000                                  |   | 5.8                                                        |   | $1.31                                     |
|   | $1.96      - $2.90            |   | 66,890                                  |   | 2.0                                                        |   | 2.55                                      |
|   | $2.91      - $4.35            |   | 12,200                                  |   | 2.1                                                        |   | 3.53                                      |
|   | $4.36      - $6.06            |   | 18,800                                  |   | 2.9                                                        |   | 5.56                                      |
|   | Total                         |   | 109,890                                 |   | 2.6                                                        |   | $3.04                                     |
|   |                          |   |                                    |   |                                                       |   |                                      |

----

| Restricted      Stock Awards           |   | Shares |    |   | WeightedAverage      Grant Date      Fair Value |   |
|----------------------------------------|--------|--------|---------|--------|-------------------------------------------------|--------|
| Outstanding      at January 1, 2008    |   |   | 273,876 |   |                                            | $      | 21.27 |   |
| Granted                                |   |   | 73,853  |   |                                            |   | 24.37 |   |
| Vested                                 |   |   | (42,804 | )      |                                            |   | 15.85 |   |
| Forfeited                              |   |   | (4,432  | )      |                                            |   | 23.16 |   |
| Outstanding      at September 30, 2008 |   |   | 300,493 |   |                                            | $      | 22.78 |   |
|                                   |   |   |    |   |                                            |   |   |   |

----

|                                |   |                                  |   |   |                                 |   |   |   |   |   |    |   |
|-------------------------------------|--------|---------------------------------------|--------|--------|--------------------------------------|--------|--------|--------|--------|--------|---------|--------|
|                                |   | Three      Months Ended September 30, |   |   | Nine      Months Ended September 30, |   |
|                                |   | 2008                                  |   |   | 2007                                 |   |   | 2008   |   |   | 2007    |   |
|                                |   |                                  |   |   |                                 |   |   |   |   |   |    |   |
| Net      sales:                     |   |                                  |   |   |                                 |   |   |   |   |   |    |   |
| Aerostructures                      |   | $                                     | 39,411 |   |                                 | $      | 35,829 |   |   | $      | 118,202 |   |   | $ | 101,940 |   |
| Engineering      Services           |   |                                  | 22,852 |   |                                 |   | 11,966 |   |   |   | 70,147  |   |   |   | 11,966 |   |
| Eliminations                        |   |                                  | (322   | )      |                                 |   | -      |   |   |   | (1,087  | )      |   |   | - |   |
|                                |   | $                                     | 61,941 |   |                                 | $      | 47,795 |   |   | $      | 187,262 |   |   | $ | 113,906 |   |
|                                |   |                                  |   |   |                                 |   |   |   |   |   |    |   |   |   |   |   |
|                                |   |                                  |   |   |                                 |   |   |   |   |   |    |   |   |   |   |   |
| Income      from operations:        |   |                                  |   |   |                                 |   |   |   |   |   |    |   |   |   |   |   |
| Aerostructures                      |   | $                                     | 5,923  |   |                                 | $      | 6,009  |   |   | $      | 16,684  |   |   | $ | 13,555 |   |
| Engineering      Services           |   |                                  | 2,638  |   |                                 |   | 896    |   |   |   | 7,872   |   |   |   | 896 |   |
| Eliminations                        |   |                                  | (7     | )      |                                 |   | -      |   |   |   | (93     | )      |   |   | - |   |
|                                |   | $                                     | 8,554  |   |                                 | $      | 6,905  |   |   | $      | 24,463  |   |   | $ | 14,451 |   |
|                                |   |                                  |   |   |                                 |   |   |   |   |   |    |   |   |   |   |   |
|                                |   |                                  |   |   |                                 |   |   |   |   |   |    |   |   |   |   |   |
| Depreciation      and Amortization: |   |                                  |   |   |                                 |   |   |   |   |   |    |   |   |   |   |   |
| Aerostructures                      |   | $                                     | 1,058  |   |                                 | $      | 955    |   |   | $      | 3,124   |   |   | $ | 2,713 |   |
| Engineering      Services           |   |                                  | 620    |   |                                 |   | 368    |   |   |   | 1,826   |   |   |   | 368 |   |
|                                |   | $                                     | 1,678  |   |                                 | $      | 1,323  |   |   | $      | 4,950   |   |   | $ | 3,081 |   |
|                                |   |                                  |   |   |                                 |   |   |   |   |   |    |   |   |   |   |   |
|                                |   |                                  |   |   |                                 |   |   |   |   |   |    |   |   |   |   |   |
| Interest      income (expense):     |   |                                  |   |   |                                 |   |   |   |   |   |    |   |   |   |   |   |
| Aerostructures                      |   | $                                     | -      |   |                                 | $      | -      |   |   | $      | -       |   |   | $ | - |   |
| Engineering      Services           |   |                                  | (5     | )      |                                 |   | -      |   |   |   | (24     | )      |   |   | - |   |
| Corporate                           |   |                                  | (402   | )      |                                 |   | (650   | )      |   |   | (1,342  | )      |   |   | (258 | ) |
|                                |   | $                                     | (407   | )      |                                 | $      | (650   | )      |   | $      | (1,366  | )      |   | $ | (258 | ) |
|                                |   |                                  |   |   |                                 |   |   |   |   |   |    |   |   |   |   |   |
|                                |   |                                  |   |   |                                 |   |   |   |   |   |    |   |   |   |   |   |
| Capital      expenditures:          |   |                                  |   |   |                                 |   |   |   |   |   |    |   |   |   |   |   |
| Aerostructures                      |   | $                                     | 2,448  |   |                                 | $      | 1,461  |   |   | $      | 4,772   |   |   | $ | 5,003 |   |
| Engineering      Services           |   |                                  | 336    |   |                                 |   | 194    |   |   |   | 1,289   |   |   |   | 194 |   |
|                                |   | $                                     | 2,784  |   |                                 | $      | 1,655  |   |   | $      | 6,061   |   |   | $ | 5,197 |   |
|                                |   |                                  |   |   |                                 |   |   |   |   |   |    |   |   |   |   |   |

|               |   |   |        September      30, 2008 |    |   |   |        December      31, 2007 |   |
|--------------------|--------|--------|-------------------------------------|---------|--------|--------|------------------------------------|--------|
|               |   |   |                                |    |   |   |                               |   |
| Goodwill:          |   |   |                                |    |   |   |                               |   |
| Aerostructures     |   |   | $                                   | 5,653   |   |   |                               | $      | 5,653 |   |
| Engineering        |   |   |                                | 42,908  |   |   |                               |   | 43,017 |   |
|               |   |   | $                                   | 48,561  |   |   |                               | $      | 48,670 |   |
|               |   |   |                                |    |   |   |                               |   |   |   |
| Total      assets: |   |   |                                |    |   |   |                               |   |   |   |
| Aerostructures     |   |   | $                                   | 107,073 |   |   |                               | $      | 95,125 |   |
| Engineering        |   |   |                                | 71,906  |   |   |                               |   | 70,993 |   |
|               |   |   | $                                   | 178,979 |   |   |                               | $      | 166,118 |   |
|               |   |   |                                |    |   |   |                               |   |   |   |

----

----

Item 2.  Management’s Discussion andAnalysis of Financial Condition and Results of Operations.

----

|                        | Three      Months Ended |
|-----------------------------|-------------------------|
|                        | September      30, 2008 |   |
|                        | ($      in millions)    |   |
|                        |                    | Aerostructures |   |   | Engineering      Services |   |   | Eliminations |   |   | Total |   |
| Net      sales              |                    |   | $ | 39.4 |   |   | $ | 22.8 |   |   | $ | (0.3 | ) |   | $ | 61.9 |   |
| Cost      of sales          |                    |   |   | 27.6 |   |   |   | 17.7 |   |   |   | (0.3 | ) |   |   | 45.0 |   |
| Gross      profit           |                    |   |   | 11.8 |   |   |   | 5.1 |   |   |   | - |   |   |   | 16.9 |   |
| S,G      & A            |                    |   |   | 5.8 |   |   |   | 2.5 |   |   |   | - |   |   |   | 8.3 |   |
| Income      from operations |                    |   | $ | 6.0 |   |   | $ | 2.6 |   |   | $ | - |   |   | $ | 8.6 |   |
|                        |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                        |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                        | Three      Months Ended |
|                        | September      30, 2007 |   |
|                        | ($      in millions)    |   |
|                        |                    | Aerostructures |   |   | Engineering      Services      (1) |   |   | Eliminations |   |   | Total |   |
| Net      sales              |                    |   | $ | 35.8 |   |   | $ | 12.0 |   |   | $ | - |   |   | $ | 47.8 |   |
| Cost      of sales          |                    |   |   | 24.7 |   |   |   | 9.8 |   |   |   | - |   |   |   | 34.5 |   |
| Gross      profit           |                    |   |   | 11.1 |   |   |   | 2.2 |   |   |   | - |   |   |   | 13.3 |   |
| S,G      & A            |                    |   |   | 5.1 |   |   |   | 1.3 |   |   |   | - |   |   |   | 6.4 |   |
| Income      from operations |                    |   | $ | 6.0 |   |   | $ | 0.9 |   |   | $ | - |   |   | $ | 6.9 |   |
|                        |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| Category                             |   | Three      Months Ended September      30, 2008 |   |   | %      of Total |   |   | Three      Months Ended September      30, 2007 |   |   | %      of Total |   |
|--------------------------------------|--------|-------------------------------------------------|--------|--------|-----------------|--------|--------|-------------------------------------------------|--------|--------|-----------------|--------|
|                                 |   | ($      in millions)                            |   |
| Corporate      and Regional Aircraft |   | $                                               | 13.9   |   |            |   | 35.3   | %                                               |   | $      | 12.4            |   |   |   | 34.6 | % |
| Large      Commercial Aircraft       |   |                                            | 11.3   |   |            |   | 28.7   |                                            |   |   | 11.5            |   |   |   | 32.1 |   |
| Military                             |   |                                            | 10.8   |   |            |   | 27.4   |                                            |   |   | 9.2             |   |   |   | 25.7 |   |
| Technology                           |   |                                            | 1.9    |   |            |   | 4.8    |                                            |   |   | 1.7             |   |   |   | 4.7 |   |
| Other      (1)                       |   |                                            | 1.5    |   |            |   | 3.8    |                                            |   |   | 1.0             |   |   |   | 2.8 |   |
| Total                                |   | $                                               | 39.4   |   |            |   | 100.0  | %                                               |   | $      | 35.8            |   |   |   | 100.0 | % |
|                                 |   |                                            |   |   |            |   |   |                                            |   |   |            |   |   |   |   |   |

----

| Category                 |   | Three      Months Ended September 30, 2008 |   |   | %      of Total |   |   | Two      Months Ended September 30, 2007 |   |   | %      of Total |   |
|--------------------------|--------|--------------------------------------------|--------|--------|-----------------|--------|--------|------------------------------------------|--------|--------|-----------------|--------|
|                     |   | ($      in millions)                       |   |
| Commercial      Aircraft |   | $                                          | 11.0   |   |            |   | 48.2   | %                                        |   | $      | 6.3             |   |   |   | 52.5 | % |
| Corporate      Aircraft  |   |                                       | 7.6    |   |            |   | 33.3   |                                     |   |   | 3.2             |   |   |   | 26.7 |   |
| Military                 |   |                                       | 3.4    |   |            |   | 14.9   |                                     |   |   | 1.7             |   |   |   | 14.2 |   |
| Tooling                  |   |                                       | 0.8    |   |            |   | 3.5    |                                     |   |   | 0.8             |   |   |   | 6.7 |   |
| Total                    |   | $                                          | 22.8   |   |            |   | 100.0  | %                                        |   | $      | 12.0            |   |   |   | 100.0 | % |
|                     |   |                                       |   |   |            |   |   |                                     |   |   |            |   |   |   |   |   |

----

----

|                        | Nine      Months Ended  |   |
|-----------------------------|-------------------------|--------|
|                        | September      30, 2008 |   |
|                        | ($      in millions)    |   |
|                        | Aerostructures          |   | Engineering      Services |   | Eliminations |   | Total |   |
| Net      sales              |                    |   | $ | 118.2 |   |   | $ | 70.1 |   |   | $ | (1.0 | ) |   | $ | 187.3 |   |
| Cost      of sales          |                    |   |   | 83.7 |   |   |   | 55.4 |   |   |   | (1.0 | ) |   |   | 138.1 |   |
| Gross      profit           |                    |   |   | 34.5 |   |   |   | 14.7 |   |   |   | - |   |   |   | 49.2 |   |
| S,G      & A            |                    |   |   | 17.8 |   |   |   | 6.9 |   |   |   | - |   |   |   | 24.7 |   |
| Income      from operations |                    |   | $ | 16.7 |   |   | $ | 7.8 |   |   | $ | - |   |   | $ | 24.5 |   |
|                        |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                        |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                        | Nine      Months Ended  |   |
|                        | September      30, 2007 |   |
|                        | ($      in millions)    |   |
|                        | Aerostructures          |   | Engineering      Services (1) |   | Eliminations |   | Total |   |
| Net      sales              |                    |   | $ | 101.9 |   |   | $ | 12.0 |   |   | $ | - |   |   | $ | 113.9 |   |
| Cost      of sales          |                    |   |   | 73.3 |   |   |   | 9.8 |   |   |   | - |   |   |   | 83.1 |   |
| Gross      profit           |                    |   |   | 28.6 |   |   |   | 2.2 |   |   |   | - |   |   |   | 30.8 |   |
| S,G      & A            |                    |   |   | 15.0 |   |   |   | 1.3 |   |   |   | - |   |   |   | 16.3 |   |
| Income      from operations |                    |   | $ | 13.6 |   |   | $ | 0.9 |   |   | $ | - |   |   | $ | 14.5 |   |
|                        |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| Category                             |   | Nine      Months Ended      September      30, 2008 |   |   | %      of Total |   |   | Nine      Months Ended      September      30, 2007 |   |   | %      of Total |   |
|--------------------------------------|--------|-----------------------------------------------------|--------|--------|-----------------|--------|--------|----------------------------------------------------------|--------|--------|-----------------|--------|
|                                 |   | ($      in millions)                                |   |
| Corporate      and Regional Aircraft |   | $                                                   | 41.5   |   |            |   | 35.1   | %                                                        |   | $      | 36.1            |   |   |   | 35.4 | % |
| Large      Commercial Aircraft       |   |                                                | 34.4   |   |            |   | 29.1   |                                                     |   |   | 33.6            |   |   |   | 33.0 |   |
| Military                             |   |                                                | 32.4   |   |            |   | 27.4   |                                                     |   |   | 24.1            |   |   |   | 23.7 |   |
| Technology                           |   |                                                | 6.3    |   |            |   | 5.3    |                                                     |   |   | 5.0             |   |   |   | 4.9 |   |
| Other      (1)                       |   |                                                | 3.6    |   |            |   | 3.0    |                                                     |   |   | 3.1             |   |   |   | 3.0 |   |
| Total                                |   | $                                                   | 118.2  |   |            |   | 100.0  | %                                                        |   | $      | 101.9           |   |   |   | 100.0 | % |
|                                 |   |                                                |   |   |            |   |   |                                                     |   |   |            |   |   |   |   |   |

----

| Category                 |   | Nine      Months Ended      September      30,2008 |   |   | %      of Total |   |
|--------------------------|--------|----------------------------------------------------|--------|--------|-----------------|--------|
|                     |   | ($      in millions)                               |   |
| Commercial      Aircraft |   | $                                                  | 33.2   |   |            |   | 47.4 | % |
| Corporate      Aircraft  |   |                                               | 23.1   |   |            |   | 33.0 |   |
| Military                 |   |                                               | 9.8    |   |            |   | 14.0 |   |
| Tooling                  |   |                                               | 4.0    |   |            |   | 5.7 |   |
| Total                    |   | $                                                  | 70.1   |   |            |   | 100.0 | % |

----

----

Item 3.  Quantitative and QualitativeDisclosures About Market Risk.

Item 4.  Controls andProcedures.

----

|  Item      1.   | Legal      Proceedings.                                                                                                                                                                                                                                                                              |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                           | We are not a party      to any legal proceedings, other than routine claims and lawsuits arising      in the ordinary course of our business.  We do not believe such      claims and lawsuits, individually or in the aggregate, will have a      material adverse effect on ourbusiness. |

|  Item      1A.  | Risk      Factors.                                                                                                                                                                                         |
|---------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                      | There have been no      material changes to the risk factors as previously disclosed in our 2007      Annual Report on Form 10-K filed with the Securities and Exchange      Commission on March 14, 2008. |

| Item      2.  | Unregistered Sale of Equity Securities and Use of      Proceeds. |
|--------------------|------------------------------------------------------------------|
|               | None.                                                            |

|  Item 3. | Defaults Upon Senior      Securities. |
|---------------|---------------------------------------|
|          | None.                                 |

| Item      4. | Submission of Matters to a Vote of Security      Holders. |
|--------------|-----------------------------------------------------------|
|         | None.                                                     |

| Item      5. | Other      Information. |
|--------------|-------------------------|
|         | None.                   |

| Item      6. | Exhibit. |
|--------------|----------|
|         | None.    |

----

|  SIGNATURES |
|------------------|

|   |   LMI      AEROSPACE, INC.                                         |
|--------|-------------------------------------------------------------------------|
|   |                                                                    |
|   | /s/ Ronald S.      Saks                                                 |
|   | Ronald S.      Saks                                                     |
|   | President      and Chief Executive Officer(Principal Executive Officer) |
|   |                                                                    |
|   | /s/ Lawrence E.      Dickinson                                          |
|   | Chief Financing      Officer and Secretary                              |
|   | (Principal Financial      and Principal AccountingOfficer)              |

----

EXHIBIT INDEX

| 31.1 | Rule      13a-14(a) Certification of Ronald S. Saks, President and Chief Executive      Officer. |
|------|--------------------------------------------------------------------------------------------------|

| 31.2 | Rule      13a-14(a) Certification of Lawrence E. Dickinson, Chief Financial      Officer. |
|------|-------------------------------------------------------------------------------------------|

| 32 | Certification      pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of      Sarbanes-Oxley Act of 2002. |
|----|------------------------------------------------------------------------------------------------------------------------------|