<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934. For the Quarterly period ended December 31, 1998; or
[ ] Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934. For the transition period from ____________________
to ___________________.
Commission File Number: 0-27186
RAYTEL MEDICAL CORPORATION
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C>
DELAWARE 94-2787342
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
</TABLE>
2755 CAMPUS DRIVE, SUITE 200, SAN MATEO, CALIFORNIA 94403
(Address of principal executive offices) (Zip code)
(650) 349-0800
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes [X] No [ ]
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
<TABLE>
<CAPTION>
CLASS SHARES OUTSTANDING AS OF JANUARY 29, 1999
----- -----------------------------------------
<S> <C>
COMMON STOCK
($.001 PAR VALUE) 8,714,610
</TABLE>
<PAGE> 2
RAYTEL MEDICAL CORPORATION AND SUBSIDIARIES
INDEX
<TABLE>
<CAPTION>
PAGE
----
<S> <C> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets as of
December 31, 1998 and September 30, 1998...................... 3
Condensed Consolidated Statements of Operations
for the three months ended December 31, 1998 and 1997.......... 4
Condensed Consolidated Statements of Cash Flows
for the three months ended December 31, 1998 and 1997.......... 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations............................ 7
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.................................. 12
SIGNATURE.................................................................. 13
</TABLE>
2
<PAGE> 3
PART 1. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
RAYTEL MEDICAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1998 AND SEPTEMBER 30, 1998
(000'S OMITTED)
ASSETS
<TABLE>
<CAPTION>
DECEMBER 31, SEPTEMBER 30,
1998 1998
--------- ---------
(UNAUDITED)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 7,716 $ 7,463
Receivables, net 33,052 35,504
Prepaid expenses and other 3,426 3,996
--------- ---------
Total current assets 44,194 46,963
Property and equipment, less accumulated
depreciation and amortization 20,920 19,681
Intangible assets, less accumulated amortization 54,667 55,497
Other 45 45
--------- ---------
Total assets $ 119,826 $ 122,186
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt and
capital lease obligations $ 1,955 $ 1,962
Accounts payable 4,189 4,649
Accrued compensation and benefits 3,807 2,920
Accrued liabilities 6,370 6,264
--------- ---------
Total current liabilities 16,321 15,795
Long-term debt and capital lease obligations,
net of current portion 32,388 35,035
Deferred liabilities 165 1,405
Minority interest in consolidated entities 3,066 3,460
--------- ---------
Total liabilities 51,940 55,695
--------- ---------
Stockholders' equity:
Common stock 9 9
Additional paid-in capital 61,845 61,790
Common stock to be issued 1,114 1,124
Retained earnings 8,540 7,190
--------- ---------
71,508 70,113
Less treasury stock, at cost (3,622) (3,622)
--------- ---------
Total stockholders' equity 67,886 66,491
--------- ---------
Total liabilities and stockholders' equity $ 119,826 $ 122,186
========= =========
</TABLE>
3
<PAGE> 4
RAYTEL MEDICAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31, 1998 AND 1997
(UNAUDITED)
(000'S OMITTED, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
DECEMBER 31,
1998 1997
-------- --------
<S> <C> <C>
Revenues:
Pacing, CEDS and Holter $ 11,717 $ 11,352
Diagnostic imaging service 4,780 4,291
Heart center, practice management and other 9,308 10,221
-------- --------
Total revenues 25,805 25,864
-------- --------
Costs and expenses:
Operating costs 11,844 12,348
Selling, general and administrative 9,115 8,234
Depreciation and amortization 2,069 2,153
-------- --------
Total costs and expenses 23,028 22,735
-------- --------
Operating income 2,777 3,129
Interest expense 672 729
Other expense (income) (177) (70)
Minority interest 69 260
-------- --------
Income before income taxes 2,213 2,210
Provision for income taxes 863 884
-------- --------
Net income $ 1,350 $ 1,326
======== ========
Net income per share:
Basic $ .16 $ .15
======== ========
Diluted $ .15 $ .14
======== ========
Weighted average shares:
Basic 8,667 8,919
======== ========
Diluted 9,077 9,539
======== ========
</TABLE>
<PAGE> 5
RAYTEL MEDICAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED DECEMBER 31, 1998 AND 1997
(UNAUDITED)
(000'S OMITTED)
<TABLE>
<CAPTION>
DECEMBER 31,
1998 1997
------- -------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 1,350 $ 1,326
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 2,069 2,153
Minority interest 69 260
Pay out of deferred compensation (1,245) --
Other, net (2) 12
Changes in operating accounts:
Receivables, net 2,452 (289)
Prepaid expenses and other 570 842
Accounts payable (460) (1,658)
Accrued liabilities and other 993 (498)
------- -------
Net cash provided by operating activities 5,796 2,148
------- -------
Cash flows from investing activities:
Capital expenditures (2,080) (1,083)
Other, net (4) (380)
------- -------
Net cash used in investing activities (2,084) (1,463)
------- -------
Cash flows from financing activities:
Repurchase of company stock -- (373)
Income distributions to noncontrolling investors (466) (432)
(Paydown of) proceeds from line of credit (2,648) 733
Principal repayments of debt (392) (474)
Other, net 47 234
------- -------
Net cash used in financing activities (3,459) (312)
------- -------
Net increase in cash and cash equivalents 253 373
Cash and cash equivalents at beginning of period 7,463 7,873
------- -------
Cash and cash equivalents at end of period $ 7,716 $ 8,246
======= =======
</TABLE>
5
<PAGE> 6
The accompanying unaudited condensed consolidated financial statements of
Raytel Medical Corporation (the "Company") have been prepared in accordance with
the instructions to Form 10-Q and do not include all of the information and
notes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments considered
necessary for a fair presentation have been included. Operating results for the
three months ended December 31, 1998 are not necessarily indicative of results
that may be expected for the year ending September 30, 1999. For further
information, refer to the consolidated financial statements and notes included
in the Company's Annual Report on Form 10-K for the year ended September 30,
1998.
For the three months ended December 31, 1998 and 1997, basic and diluted
earnings per share are calculated as follows:
<TABLE>
<CAPTION>
For the three months
ended December 31,
--------------------
(000's omitted, except per share amounts) 1998 1997
------ ------
<S> <C> <C>
BASIC EARNINGS PER SHARE:
Net income $1,350 $1,326
====== ======
Weighted average shares outstanding 8,667 8,919
====== ======
Per share $ .16 $ .15
====== ======
DILUTED EARNINGS PER SHARE:
Net income $1,350 $1,326
====== ======
Weighted average shares outstanding 8,667 8,919
Shares to be issued 151 132
Options 259 416
Warrants -- 72
------ ------
9,077 9,539
====== ======
Per share $ .15 $ .14
====== ======
</TABLE>
Certain options and warrants to purchase shares of common stock were
outstanding during the three months ended December 31, 1998 and 1997, but were
not included in the computation of diluted earnings per share because their
exercise prices were greater than the average market price of the common shares
for the period. The options and warrants outstanding and their exercise prices
are as follows:
<TABLE>
<CAPTION>
For the three months
ended December 31,
---------------------------------
(000's omitted, except per share amounts) 1998 1997
------ ------
<S> <C> <C>
Options and warrants outstanding 482,814 900
Range of exercise prices $4.75 - $13.50 $12.63 - $13.50
</TABLE>
6
<PAGE> 7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
This discussion and analysis includes a number of forward-looking
statements which reflect the Company's current views with respect to future
events and financial performance. These forward-looking statements are subject
to certain risks and uncertainties, including those discussed under "Business
Environment and Future Results" and elsewhere in this Item, that could cause
actual results to differ materially from historical results or those
anticipated. In this Item, the words "anticipates," "believes," "expects,"
"intends," "future" and similar expressions identify forward-looking statements.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof.
OVERVIEW
The Company generates the majority of its revenues from the provision of
transtelephonic monitoring services for cardiac pacemaker patients ("Pacing"),
cardiac event detection services ("CEDS") and Holter, diagnostic imaging
services and cardiac catheterization procedures.
Following the Company's initial public offering in December 1995, the
Company has entered into a series of transactions which have expanded its heart
center and physician practice management businesses. As a result, revenue is
also being provided from: Raytel Heart Center at Granada Hills ("RHCGH")
beginning on February 1, 1996; the management of Southeast Texas Cardiology
Associates II P.A. ("SETCA") beginning on September 18, 1996; the management of
Comprehensive Cardiology Consultants, a Medical Group, Inc. ("CCMG") beginning
on November 1, 1996; and Cardiovascular Ventures, Inc. ("CVI") beginning on
August 15, 1997, which included the multi-specialty physician practice, Heart
and Family Health Institute ("HFHI") and seven cardiovascular diagnostic
facilities.
Under certain practice management contracts, revenues are recognized
pursuant to long-term arrangements with physician groups under which the Company
provides the physician group with a full range of services, including, but not
limited to, office space, specialized clinical and procedural facilities,
medical equipment, data processing and medical record keeping, billing and
collection procedures and services, non-physician licensed personnel, such as
nurses and technicians, as well as office staff and administrative personnel. In
the case of SETCA and CCMG, the Company's practice management revenues are
derived from the physician groups' revenues, generally as a purchased service,
except for certain physician compensation and employment benefits, which are
paid by the physician group on a priority basis. Under the above management
services arrangements, the Company's practice management revenues represent
approximately 66% and 56% of the revenues of the physician groups for the three
months ended December 31, 1998 and 1997, respectively. For HFHI, the Company
recognizes 100% of all medical revenue as the physicians are employees of the
Company.
On October 9, 1997, the Company announced it had entered into an agreement
with The Baptist Hospital of Southeast Texas ("Baptist") to develop a Raytel
Cardiovascular Center at the hospital. Under the agreement, Raytel will manage
the cardiovascular center, which will provide the entire continuum of
cardiovascular services, including diagnostic, therapeutic and patient
management programs. Among other duties, Raytel will be responsible for the
day-to-day operations of the heart center, including administrative support,
information systems management, marketing and public relations activities. The
Company began operations at Baptist during its fourth quarter of fiscal 1998.
However, due to the acquisition of Baptist by Memorial Hermann Hospital System,
the agreement is currently being renegotiated by the parties. Therefore during
the first quarter of fiscal 1999, the Company has only recognized revenue to the
extent of expenses.
7
<PAGE> 8
RESULTS OF OPERATIONS
Revenues. Pacing, CEDS and Holter revenues increased by $365,000, or 3.2%,
from $11,352,000 for the three months ended December 31, 1997 to $11,717,000 for
the three months ended December 31, 1998, due primarily to higher revenues from
Pacing primarily as a result of higher reimbursement rates. Diagnostic imaging
service revenues increased by $489,000, or 11.4%, from $4,291,000 for the three
months ended December 31, 1997 to $4,780,000 for the three months ended December
31, 1998, due primarily to increases in revenues at certain centers due to an
increase in volume. Heart Center, practice management and other revenues
decreased by $913,000, or 8.9%, from $10,221,000 for the three months ended
December 31, 1997 to $9,308,000 for the three months ended December 31, 1998,
due primarily to lower volumes at the cardiovascular diagnostic facilities and
at RHCGH.
As a result of the foregoing factors, total revenues decreased by $59,000,
or 0.2%, from $25,864,000 for the three months ended December 31, 1997 to
$25,805,000 for the three months ended December 31, 1998.
Operating Expenses. Operating costs and selling, general and administrative
expenses increased by $377,000, or 1.8%, from $20,582,000 for the three months
ended December 31, 1997 to $20,959,000 for the three months ended December 31,
1998, due primarily to slight increases in costs and expenses in transtelephonic
monitoring and diagnostic imaging services, partially offset by slight
reductions in costs and expenses in cardiovascular diagnostic services and at
RHCGH. Operating costs and selling, general and administrative expenses as a
percentage of total revenues increased from 79.6% for the three months ended
December 31, 1997 to 81.2% for the three months ended December 31, 1998. At
RHCGH operating expenses were slightly in excess of revenues for both periods.
Depreciation and Amortization. Depreciation and amortization expense
decreased by $84,000, or 3.9%, from $2,153,000 for the three months ended
December 31, 1997 to $2,069,000 for the three months ended December 31, 1998,
and decreased as a percentage of revenues from 8.3% for the three months ended
December 31, 1997 to 8.0% for the three months ended December 31, 1998.
Operating Income. As a result of the foregoing factors, operating income
decreased by $352,000, or 11.2% from $3,129,000 for the three months ended
December 31, 1997 to $2,777,000 for the three months ended December 31, 1998.
Interest Expense. Interest expense decreased by $57,000, or 7.8%, from
$729,000 for the three months ended December 31, 1997 to $672,000 for the three
months ended December 31, 1998 due primarily to a decrease in debt.
Other Expense (Income). Other income increased by $107,000 due primarily to
a series of insignificant items.
Minority Interest. Minority interest decreased by $191,000 or 73.5%, from
$260,000 for the three months ended December 31, 1997 to $69,000 for the three
months ended December 31, 1998 due primarily to decreased incomes in certain
cardiovascular diagnostic facilities.
Income Taxes. The provision for income taxes decreased by $21,000, or 2.4%,
from $884,000 for the three months ended December 31, 1997 to $863,000 for the
three months ended December 31, 1998 as a result of a lower effective tax rate.
Net Income. As a result of the foregoing factors, net income increased by
$24,000, or 1.8%, from $1,326,000 for the three months ended December 31, 1997
to $1,350,000 for the three months ended December 31, 1998.
8
<PAGE> 9
BUSINESS ENVIRONMENT AND FUTURE RESULTS
The Company's future operating results may be affected by various trends in
the healthcare industry as well as by a variety of other factors, some of which
are beyond the Company's control.
The healthcare industry is undergoing significant change as third-party
payors attempt to control the cost, utilization and delivery of healthcare
services. Substantially all of the Company's revenues are derived from Medicare,
HMOs, and commercial insurers and other third-party payors. Both government and
private payment sources have instituted cost containment measures designed to
limit payments made to healthcare providers by reducing reimbursement rates,
limiting services covered, increasing utilization review of services,
negotiating prospective or discounted contract pricing, adopting capitation
strategies and seeking competitive bids. Although the Company's total revenues
have increased in each of the last three fiscal years, revenue growth of the
Company's Pacing operations during that period has been negatively impacted by
Medicare reimbursement rate reductions. Additional reimbursement rate reductions
applicable to the Company's Pacing procedures became effective on January 1,
1997. These reductions had a negative effect on the Company's operating results
for the first quarter of fiscal 1998. The Company's Pacing operations have been
favorably impacted since January 1, 1998 due to an increase in Medicare
reimbursement rates effective on that date. However, effective January 1, 1999
the Company expects a slight decrease in these reimbursement rates. The Company
cannot predict with any certainty whether or when additional reductions or
changes in Medicare or other third-party reimbursement rates or policies will be
implemented. There can be no assurance that future changes, if any, will not
adversely affect the amounts or types of services that may be reimbursed to the
Company, or that future reimbursement of any service offered by the Company will
be sufficient to cover the costs and overhead allocated to such service.
From time to time Congress considers legislation to reduce Medicare and
Medicaid expenditures. Future legislation of this type could have a material
adverse effect on the Company's business, financial condition and operating
results. Governmental agencies promulgate regulations which mandate changes in
the method of delivering services which could have a material adverse effect on
the Company's business.
A key element of the Company's long-range strategy is the development and
operation of integrated heart centers and the acquisition of healthcare
providers specializing in cardiology related services and the assets of
physician practices and other businesses related to its current operations. The
success of the Company's existing and future heart centers and physician
practices will depend upon several factors, including the Company's ability to:
obtain and operate in compliance with appropriate licenses; control costs and
realize operating efficiencies; educate patients, referring physicians and
third-party payors about the benefits of such heart centers; and provide
cost-effective services that meet or exceed existing standards of care.
An element of the Company's strategy is to expand, in part, through
acquisitions and investments in complementary healthcare businesses. The
implementation of this strategy may place significant strain on the Company's
administrative, operational and financial resources and increase demands on its
systems and controls. There can be no assurances that businesses acquired by the
Company, either recently or in the future, will be integrated successfully and
profitably into the Company's operations, that suitable acquisitions or
investment opportunities will be identified, or that any such transactions can
be consummated.
Providers of healthcare services are subject to numerous federal, state and
local laws and regulations that govern various aspects of their business. There
can be no assurance that the Company will be able to obtain regulatory approvals
that may be required to expand its services or that new laws or regulations will
not be enacted or adopted that will have a material adverse effect on the
Company's business, financial condition or operating results.
9
<PAGE> 10
The healthcare businesses in which the Company is engaged are highly
competitive. The Company expects competition to increase as a result of ongoing
consolidations and cost-containment pressures, among other factors.
The trading price of the Company's Common Stock could be subject to wide
fluctuations in response to quarterly variations in the Company's operating
results, shortfalls in such operating results from levels forecasted by
securities analysts and other events or factors. In addition, the stock market
has, from time to time, experienced extreme price and volume fluctuations that
have particularly affected the market prices of companies in the healthcare
service industries and that have often been unrelated to the operating
performance of the affected companies. Announcements of changes in reimbursement
policies of third-party payors, legislative or regulatory developments, economic
news and other external factors may have a significant impact on the market
price of healthcare stocks.
LIQUIDITY AND CAPITAL RESOURCES
The Company acquired CDS in June 1996 for cash in the amount of
$14,254,000, SETCA in September 1996 for cash in the amount of $4,010,000 and
CCMG in November 1996 for cash in the amount of $427,000 and CVI in August 1997
for cash in the amount of $16,980,000 plus $280,000 paid during fiscal 1998. At
December 31, 1998, the Company had working capital of $27,873,000, compared to
$31,168,000 at September 30, 1998. At December 31, 1998, the Company had cash
and temporary cash investments of $7,716,000. At December 31, 1998, $25,578,000
was outstanding under the Company's line of credit.
The Company batch-bills Medicare insurance carriers for most cardiac
testing services performed during the first few months of each calendar year.
This practice results in a temporary build-up of accounts receivable during the
Company's second and third fiscal quarters and the collection of these
receivables primarily during the subsequent fourth fiscal quarter.
The Company has a revolving line of credit with two banks in the amount of
$45,000,000 to fund working capital needs, future acquisitions, equipment
purchases and other business needs. Amounts outstanding under the line of credit
bear interest based on a defined formula and are subject to certain covenants.
The line of credit expires in August 1999 at which time any outstanding balance
will be converted to a five-year term loan.
The Company's long-term capital requirements will depend on numerous
factors, including the rate at which the Company develops and opens new heart
centers or acquires existing heart centers, physician practices or other
businesses, if any. The Company believes that its cash and cash equivalent
balances, together with amounts available from bank borrowings and cash
generated by its operating activities, will be adequate to meet the Company's
anticipated needs for working capital and capital expenditures through fiscal
1999.
YEAR 2000 COMPLIANCE
The Company is aware of the issues associated with the programming code in
existing computer systems as the Year 2000 approaches. Many existing computer
programs use only two digits instead of four to identify a year in the date
field. The Company has completed a thorough review of its material computer
applications. The Company has begun installation of a new billing and collection
system as well as a new accounting system. These new systems are Year 2000
compliant. The Company had planned on replacing them regardless of the Year 2000
issue. There are other systems at certain cardiovascular diagnostic facilities
recently acquired by the Company which may not be Year 2000 compliant, however,
the Company anticipates that all such systems will be replaced by its new
systems before the Year 2000. There can be no assurances that any systems at
companies purchased by or affiliated with the Company in the future will be Year
2000 compliant or, if not, will be converted on a timely basis. At the present
time, the Company does not anticipate that the cost for it to become Year 2000
compliant will have a material impact on the Company's financial statements.
10
<PAGE> 11
The Company has initiated a program to determine whether the computer
applications of its significant vendors will be upgraded in a timely manner. The
Company has also initiated a program to determine whether embedded applications
which control medical and other equipment will be affected. The Company has not
yet completed these reviews. The Company has begun discussions with its payors
to determine the status of their systems. The nature of the Company's business
is such that any failure to these types of applications may have a material
adverse effect on its business.
Because of the many uncertainties associated with Year 2000 compliance
issues, and because the Company's assessment is necessarily based on information
from third-party vendors, payors and suppliers, there can be no assurance that
the Company's assessment is correct or as to the materiality or effect of any
failure of such assessment to be correct. At the present time, the Company has
not developed a contingency plan relative to Year 2000 compliance.
11
<PAGE> 12
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
A. EXHIBITS:
The following exhibits are filed as a part of this Report:
<TABLE>
<CAPTION>
Exhibit
Number Title
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<S> <C>
27 Financial data schedule
</TABLE>
B. REPORTS ON FORM 8-K:
The Company filed no reports on Form 8-K during the quarter ended December
31, 1998.
12
<PAGE> 13
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
RAYTEL MEDICAL CORPORATION
Dated: February 10, 1999 By: /s/ E. Payson Smith, Jr.
----------------------------------------
E. Payson Smith, Jr.
Senior Vice President and Chief
Financial Officer (duly authorized
officer and principal financial officer)
13
<PAGE> 14
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit
Number Title Page
- ------- ----- ----
<S> <C> <C>
27 Financial data schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM RAYTEL
MEDICAL CORPORATION AND SUBSIDIARIES FINANCIAL STATEMENTS AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-START> OCT-01-1998
<PERIOD-END> DEC-31-1998
<CASH> 7,716
<SECURITIES> 0
<RECEIVABLES> 33,052<F1>
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 44,194
<PP&E> 42,400
<DEPRECIATION> 21,480
<TOTAL-ASSETS> 119,826
<CURRENT-LIABILITIES> 16,321
<BONDS> 0
0
0
<COMMON> 9
<OTHER-SE> 67,877
<TOTAL-LIABILITY-AND-EQUITY> 119,826
<SALES> 0
<TOTAL-REVENUES> 25,805
<CGS> 0
<TOTAL-COSTS> 23,028
<OTHER-EXPENSES> (108)
<LOSS-PROVISION> 0<F2>
<INTEREST-EXPENSE> 672
<INCOME-PRETAX> 2,213
<INCOME-TAX> 863
<INCOME-CONTINUING> 1,350
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,350
<EPS-PRIMARY> 0.16
<EPS-DILUTED> 0.15
<FN>
<F1>Represents net receivables.
<F2>Included in TOTAL-COSTS.
</FN>
</TABLE>
