<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(MARK ONE)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES
EXCHANGE ACT OF 1934.
For the quarterly period ended June 30, 1997.
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 0-27750
-------
IMPATH INC.
(exact name of registrant as specified in its charter)
<TABLE>
<S> <C> <C>
DELAWARE 8071 13-3459685
(State or other jurisdiction of (Primary Standard Industrial (I.R.S. Employer
incorporation or organization) Classification Code Number) Identification No.)
</TABLE>
1010 THIRD AVENUE, SUITE 302
NEW YORK, NEW YORK 10021
(212) 702-8300
(Address, including zip code, and telephone number,
including area code, of registrant's principal executive offices)
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 (due to initial public offering, ----------------------------------
effective 2/15/96) ------------------
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
CLASS OUTSTANDING AT JUNE 30, 1997
- ----- ----------------------------
Common Stock, par value 5,398,152
$ .005 per share
1
<PAGE>
INDEX
IMPATH INC.
PAGE NUMBER
-----------
PART I FINANCIAL INFORMATION
Item 1 Consolidated Financial Statements (Unaudited):
Consolidated Balance Sheets at June 30, 1997
and December 31, 1996........................................ 3
Consolidated Statements of Operations for the Three and Six
Months Ended June 30, 1997 and June 30, 1996................. 4
Consolidated Statement of Stockholders' Equity for the Six
Months Ended June 30, 1997................................... 5
Consolidated Statements of Cash Flows for the Six
Months Ended June 30, 1997 and June 30, 1996................. 6
Notes to Consolidated Financial Statements................... 7
Item 2 Management's Discussion and Analysis of
Financial Condition and Results of Operations................ 8-10
PART II OTHER INFORMATION
Item 6 Exhibits and Reports on Form 8-K........................... 11-15
2
<PAGE>
IMPATH INC.
Consolidated Balance Sheets
<TABLE>
<CAPTION>
JUNE 30, DEC. 31,
1997 1996
ASSETS (UNAUDITED)
----------- ------------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 3,081,137 $ 941,903
Marketable trading securities 17,085,472 23,395,398
Accounts receivable, net of allowance for doubtful accounts 9,879,203 7,059,812
Prepaid expenses and other current assets 843,496 524,599
Deferred tax assets, net 1,359,285 1,359,285
Investment (50%) in IMPATH Registry 75,000 -
----------- -----------
Total current assets 32,323,593 33,280,997
Fixed assets, less accumulated depreciation and amortization 4,066,470 3,391,965
Deposits and other assets 236,206 98,878
Goodwill, net of accumulated amortization 2,161,087 809,542
----------- -----------
Total Assets $38,787,356 $37,581,382
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of capital lease obligations $ 877,529 $ 704,399
Accounts payable and accrued expenses 679,846 1,116,781
Income taxes payable 268,682 692,193
----------- -----------
Total current liabilities 1,826,057 2,513,373
----------- -----------
Capital lease obligations, net of current portion 1,581,927 1,430,104
Stockholders' equity:
Common stock, $.005 par value 27,026 26,611
Additional paid-in capital 32,593,235 32,357,260
Retained Earnings 2,930,078 1,498,878
----------- -----------
35,550,339 33,882,749
Less:
Cost of 7,088 shares of common stock held in treasury (100) (100)
Notes receivable from officers (18,336) (28,421)
Deferred compensation (152,531) (216,323)
----------- -----------
Total stockholders' equity 35,379,372 33,637,905
----------- -----------
Total Liabilities and Stockholders' Equity $38,787,356 $37,581,382
=========== ===========
</TABLE>
See accompanying notes to consolidated financial statements.
3
<PAGE>
IMPATH INC.
Consolidated Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
-------------------------- -----------------------------
1997 1996 1997 1996
----------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
Revenues:
Net diagnostic and prognostic services $9,249,227 $5,021,886 $17,074,177 $9,716,236
Contract laboratory services 35,912 58,011 55,948 105,686
---------- ---------- ----------- ----------
Total revenues 9,285,139 5,079,897 17,130,125 9,821,922
---------- ---------- ----------- ----------
Operating expenses,
Salaries and related costs 3,836,405 2,257,961 7,074,602 4,513,525
Selling, general and administrative 4,106,433 2,242,402 7,882,419 4,500,990
---------- ---------- ----------- ----------
Total operating expenses 7,942,838 4,500,363 14,957,021 9,014,515
---------- ---------- ----------- ----------
Income from operations 1,342,301 579,534 2,173,104 807,407
Interest income 222,151 334,069 284,796 454,807
Interest expense (63,492) (45,042) (144,912) (90,747)
Gain on trading marketable securities 40,187 - 242,725 -
---------- ---------- ----------- ----------
Income before income tax expense 1,541,147 868,561 2,555,713 1,171,467
Income tax expense (673,424) (369,137) (1,124,513) (503,877)
---------- ---------- ----------- ----------
Net income 867,723 499,424 1,431,200 667,590
Accrued dividends on preferred stock - - - (82,346)
---------- ---------- ----------- ----------
Net income available to common stockholders $ 867,723 $ 499,424 $ 1,431,200 $ 585,244
========== ========== =========== ==========
Net income per share $0.15 $0.09 $0.25 $0.13
========== ========== =========== ==========
Weighted average common and common
equivalent shares outstanding 5,829,000 5,760,000 5,811,000 5,118,000
========== ========== =========== ==========
</TABLE>
See accompanying notes to consolidated financial statements.
4
<PAGE>
IMPATH INC.
Consolidated Statement of Stockholders' Equity
Six Months ended June 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
NOTES
COMMON STOCK ADDITIONAL RECEIVABLE
---------------------- PAID-IN ACCUMULATED TREASURY FROM DEFERRED
SHARES AMOUNT CAPITAL EARNINGS STOCK STOCKHOLDER COMPENSATION TOTAL
----------- --------- ----------- ------------ ------- ------------ -------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balance at December 31,
1996 5,322,286 $26,611 $32,357,260 $1,498,878 $(100) $(28,421) $(216,323) $33,637,905
Common shares issued upon
exercise of stock options 76,686 384 198,167 198,551
Common shares issued upon
exercise of warrant 6,268 31 21,905 21,936
Compensation associated
with stock issuance 15,903 15,903
Repayment of loans to
stockholders 10,085 10,085
Amortization of deferred
compensation 63,792 63,792
Net income for the period
ended June 30, 1997 1,431,200 1,431,200
--------- ------- ----------- ---------- ----- -------- --------- -----------
Balance at June 30, 1997 5,405,240 $27,026 $32,593,235 $2,930,078 $(100) $(18,336) $(152,531) $35,379,372
========= ======= =========== ========== ===== ======== ========= ===========
</TABLE>
See accompanying notes to consolidated financial statements.
5
<PAGE>
IMPATH INC.
Consolidated Statements of Cash Flows
(UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30,
------------------------
1997 1996
----------- -----------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 1,431,200 $ 667,590
Adjustments to reconcile net income
to net cash provided by operating activities-
Depreciation and amortization 758,093 369,607
Provision for uncollectible accounts receivable 2,244,369 1,132,625
Amortization of deferred compensation 63,792 53,160
Changes in assets and liabilities:
(Increase) in accounts receivable (4,588,759) (3,024,939)
(Increase) in prepaid expenses and current assets (318,897) (319,934)
Decrease (increase) in marketable securities 6,309,926 (14,194,148)
(Increase) decrease in deposits and other assets (137,328) 21,276
(Decrease) in accounts payable and accrued expenses (1,356,395) (413,008)
(Decrease) in income taxes payable (423,511) (78,415)
----------- ------------
Total adjustments 2,551,290 (16,453,776)
----------- ------------
Net cash provided (used) by operating activities 3,982,490 (15,786,186)
----------- ------------
Cash flow from investing activities:
Investment in IMPATH Registry (75,000) -
Purchase of Oncogenetics Inc. (750,000) -
Purchase of Immunodiagnostic Inc. customer list (425,000) -
Capital expenditures (440,675) (210,904)
----------- ------------
Net cash used in investing activities (1,690,675) (210,904)
----------- ------------
Cash flows from financing activities:
Issuance of common stock 236,390 26,031,712
Payment of dividends on preferred stock - (560,346)
Repayment of bank loan - (283,333)
Payments of capital lease obligations (399,056) (226,629)
Payments received on officer loans 10,085 2,914
Deferred Registration Costs - 474,179
----------- ------------
Net cash (used) provided by financing activities (152,581) 25,438,497
----------- ------------
Net increase in cash and cash equivalents 2,139,234 9,441,407
Cash and cash equivalents at beginning of period 941,903 1,512,695
----------- ------------
Cash and cash equivalents at end of period $ 3,081,137 $ 10,954,102
=========== ============
</TABLE>
See accompanying notes to consolidated financial statements.
6
<PAGE>
IMPATH INC.
Notes to Consolidated Financial Statements
(unaudited)
GENERAL:
The accompanying unaudited consolidated financial statements have been prepared
by management in accordance with the rules and regulations of the United States
Securities and Exchange Commission.
In the opinion of IMPATH Inc. (the "Company" or "IMPATH"), the accompanying
unaudited consolidated financial statements contain all adjustments, consisting
only of normal recurring adjustments necessary for the fair presentation of the
financial information for all periods presented. Results for the interim periods
are not necessarily indicative of the results for an entire year and do not
include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. These financial
statements should be read in conjunction with the financial statements and the
notes thereto contained in the Company's Annual Report on Form 10-K for the year
ended December 31, 1996.
NET INCOME PER SHARE:
Net income per share is based on the weighted average number of shares of common
stock outstanding after giving effect to the conversion (calculated using the
as-converted method) of the convertible preferred stock that converted upon the
completion of the Company's initial public offering in February 1996. Common
equivalent shares from stock options and warrants are included in the
computation using the treasury stock method to the extent their effect is
dilutive. All stock options and warrants issued within a one year period prior
to the initial public offering have been treated as outstanding before the
completion of the offering.
INVESTMENT:
The Company invested approximately $20,000,000 of the net proceeds from its
initial public offering in a portfolio of short term fixed income securities
that are managed by a Wall Street investment firm. In accordance with Statement
of Financial Accounting Standards No. 115, the Company's investments are being
recorded at fair value with gains and losses reported in the Statement of
Operations. At June 30, 1997, approximately $1,300,000 of securities with
original maturities of three months or less were included as cash equivalents.
The remaining securities included in the investment portfolio with original
maturities that exceed three months are included in current assets.
7
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 1997
COMPARED WITH THREE MONTHS ENDED JUNE 30, 1996
The Company's total revenues for the three months ended June 30, 1997 and 1996
were $9,285,000 and $5,080,000, respectively, representing an increase of
$4,205,000, or 82.8%, in 1997. This growth was primarily attributable to a
56.1% increase in case volume resulting from increased sales and marketing
activities, as well as the successful integration of our two recent acquisitions
- - certain assets of Arizona based Oncogenetics and Florida based
Immunodiagnostic Laboratories. In addition, revenue realization per case
increased due to product mix changes toward cases which carry higher
reimbursement rates, as well as a shift in the payor mix from institutional
billing to third party.
Salaries and related costs for the first three months ended June 30, 1997 and
1996 were $3,836,000 and $2,258,000, respectively, representing an increase of
$1,578,000, or 69.9%, in 1997. This increase was the result of increased
personnel required due to the increase in case volume, as well as personnel
costs incurred in connection with the Company's expansion. Salaries and
related costs, as a percentage of total revenues decreased to 41.3% in 1997 from
44.5% in 1996.
Selling, general and administrative expenses for the three months ended June 30,
1997 and 1996 were $4,106,000 and $2,242,000, respectively, representing an
increase of $1,864,000, or 83.1%, in 1997. This increase was due to an increase
in bad debt expense of approximately $595,000 as a result of higher revenues and
a shift to more revenues requiring copayments. Third-party revenues have
historically had a higher bad debt rate than institutional revenues. In
addition, there was an increase in operating expenses of approximately $416,000
incurred by the Company's new Arizona based cancer testing facility which was
acquired in January, 1997. The Company incurred over $407,000 in higher supply
and courier costs due to increased volume and the logistics required to service
the Company's expanding oncology office based business. Finally, depreciation
and amortization costs increased $225,000 primarily due to the Company's two
recent acquisitions and the development of an outcomes database. The Company
also incurred higher travel related expenses and professional fees associated
with expanded sales, marketing and investor relations activities. Due to the
costs associated with the Company's newly acquired testing facility, selling,
general and administrative expenses as a percentage of total revenues increased
to 44.2% in 1997 from 44.1% in 1996.
Income from operations for the three months ended June 30, 1997 and 1996 was
$1,342,000 and $580,000, respectively, representing an increase of $762,000, or
131.5%, in 1997. The 1997 figure reflects increased Company operating margins
from its core diagnostic and prognostic services as well as the effect on
earnings of the net operating income generated from the Arizona cancer testing
facility which was acquired in January, 1997. As a percentage of total revenues,
income from operations increased to 14.5% in 1997 from 11.4% in 1996.
Other income, net for the three months ended June 30, 1997 and 1996 was $199,000
and $289,000, respectively, representing a decrease of $90,000 in 1997. This
decrease was due to a decrease of approximately $3,500,000 in the amount
invested in fixed income securities. The proceeds from the sale of securities
are being used to fund the Company's expansion and database development
activities.
The tax provision for the three months ended June 30, 1997 of approximately
$673,000 reflects federal, state and local income tax expense. The Company has
estimated its annual effective tax rate for 1997 to be approximately 44% which
is in line with the current provision.
As a result, net income for the three months ended June 30, 1997 and 1996 was
$868,000 and $499,000, respectively, representing an increase of $369,000 or
74.0% in 1997. The increase in net income is due to the effect described above.
8
<PAGE>
SIX MONTHS ENDED JUNE 30, 1997
COMPARED WITH SIX MONTHS ENDED JUNE 30, 1996
The Company's total revenues for the six months ended June 30, 1997 and 1996
were $17,130,000 and $9,822,000, respectively, representing an increase of
$7,308,000 or 74.4%, in 1996. This growth was primarily due to a 52.2% increase
in case volume resulting from increased sales and marketing activities, as well
as the successful integration of our two recent acquisitions-certain assets of
Arizona based Oncogenetics and Florida based Immunodiagnostic Laboratories. In
addition, revenue realization per case increased as a result of product mix
changes toward cases with higher reimbursement rates.
Salaries and related costs for the six months ended June 30, 1997 and 1996 were
$7,075,000 and $4,514,000, respectively, representing an increase of $2,561,000
or 56.7%, in 1997. This increase was due to case volume growth and personnel
costs associated with the Company's recent acquisitions which commenced in
January 1997. Salaries and related costs, as a percentage of total revenues
decreased to 41.3% in 1997 from 46.0% in 1996.
Selling, general and administrative expenses for the six months ended June 30,
1997 and 1996 were $7,882,000 and $4,501,000, respectively, representing an
increase of $3,381,000 or 75.1% in 1997. This increase was due to an increase
in bad debt expense of approximately $1,112,000 associated with higher revenues,
as well as a shift to more revenues requiring copayments. The Company also
incurred $640,000 in additional operating expenses associated with the Company's
new Arizona based cancer testing facility which was acquired in January, 1997.
In addition, the Company incurred over $675,000 in higher supply and courier
costs due to increased volume and the logistics required to service the
Company's rapidly growing oncology office based business. Finally, depreciation
and amortization costs increased approximately $400,000 primarily due to the
Company's two recent acquisitions and the development of an outcomes database.
The Company also incurred higher travel related expenses and professional fees
associated with expanded sales, marketing and investor relations activities. As
a result of these factors, selling, general and administrative expenses as a
percentage of total revenues increased to 46.0% in 1997 from 45.9% in 1996.
Income from operations for the six months ended June 30, 1997 and 1996 was
$2,173,000 and $807,000, respectively, representing an increase of $1,366,000 or
169.3% in 1997. The 1997 figure reflects increased Company operating margins
from its core diagnostic and prognostic services as well as the effect on
earnings of the net operating income generated from the Arizona cancer testing
facility which was acquired in January, 1997. As a percentage of total revenues,
income from operations increased to 12.7% in 1997 from 8.2% in 1996.
Interest income, net for the six months ended June 30, 1997 and 1996 was
$383,000 and $364,000, respectively, representing an increase of $19,000 in
1997. The increase was the result of increased interest income generated from
the proceeds of the Company's initial public offering of common stock in
February 1996, partially offset by increased interest expense due to additional
capital lease obligations.
The tax provision for the six months ended June 30, 1997 of approximately
$1,125,000 reflects federal, state and local income tax expense. The Company
has estimated its annual effective tax rate for 1997 to be approximately 44%
which is in line with the current provision.
As a result, net income for the six months ended June 30, 1997 and 1996 was
$1,431,000 and $668,000, respectively, representing an increase of $763,000 or
114.2%, in 1997. As a percentage of total revenues, net income increased to
8.4% in 1997 from 6.8% in 1996.
9
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
Since inception, the Company has financed its operations through its February
1996 initial public offering, the private issuance of convertible preferred
stock, secured term loans and operating and capital equipment leases. The
Company's working capital and capital expenditure needs have increased and are
expected to continue to increase as the Company expands its existing facilities
and pursues its growth strategy.
The Company's cash and cash equivalent balances at June 30, 1997 and December
31, 1996 were $3,081,000 and $942,000, respectively, representing an increase of
$2,139,000 in 1997. The Company also has approximately $17,000,000 at June 30,
1997 invested in a portfolio of fixed income securities managed by a Wall Street
investment firm.
For the six months ended June 30, 1997, the Company provided net cash from
operating activities of approximately $3,982,000. This increase was primarily
the result of higher net income as well as the sale of marketable trading
securities of $6,310,000. This increase was partially mitigated by an increase
in accounts receivable net of allowance for bad debt of $2,344,000 due to rapid
sales growth. In addition, the Company reduced its accounts payable and accrued
expenses by $1,356,000.
During the first six months of 1997, the Company used approximately $1,250,000
of cash to fund its growth strategy through the acquisition of certain assets of
Oncogenetics and Immunodiagnostic Laboratories, as well as a joint venture with
Medical Registry Services, Inc. In addition, the Company had capital
expenditures of $441,000 during the period. The Company received approximately
$236,000 during the first six months of 1997 through the exercise of incentive
stock options and used approximately $399,000 for the principal payments on
capital lease obligations.
In August 1996, the Company renewed its line of credit at an aggregate amount of
$2,500,000 with the Chase Manhattan Bank. Borrowing under the line will bear
interest at the Chase Manhattan Bank's prime rate. The availability of the line
of credit is subject to the execution of such additional documentation as the
Chase Manhattan Bank may request. As of June 30, 1997 the Company had not drawn
on the line of credit.
The Company's growth strategy is anticipated to be financed through the net
proceeds from the initial public offering, its current cash resources and
existing third-party credit facilities. The Company believes the combination of
these sources will be sufficient to fund its operations and satisfy the
Company's cash requirements for the next 12 months and the foreseeable future.
There may be circumstances, however, that would accelerate the Company's use of
proceeds from the initial public offering. If this occurs, the Company may,
from time to time, incur additional indebtedness or issue, in public or private
transactions, equity or debt securities. However, there can be no assurance
that suitable debt or equity financing will be available to the Company.
IMPACT OF INFLATION AND CHANGING PRICES
The impact of inflation and changing prices on the Company has been primarily
limited to salary, laboratory and operating supplies and rent increases and has
not been material to date to the Company's operations. In the future, the
Company may not be able to raise the prices for its cases by an amount
sufficient to cover the cost of inflation, although the Company is responding to
these concerns by attempting to increase the volume and adjust the product mix
of its business.
10
<PAGE>
ITEM 6 EXHIBITS AND REPORTS ON FORM 8-K
(a) The exhibits required to be filed as part of this Quarterly
Report on Form 10-Q are listed in the attached Index to
Exhibits.
(b) No reports on Form 8-K were filed during the quarter for which
this Quarterly Report on Form 10-Q is filed.
11
<PAGE>
SIGNATURES
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.
Dated: July 30, 1997 IMPATH INC.
-----------
(Registrant)
Dated: July 30, 1997 By /s/ ANU D. SAAD
----------------------------
Anu D. Saad, Ph.D.
President and Chief
Executive Officer
Dated: July 30, 1997 By /s/ JOHN P. GANDOLFO
----------------------------
John P. Gandolfo
Executive Vice President,
Chief Financial Officer
and Principal Accounting
Officer
12
<PAGE>
INDEX TO EXHIBITS
-----------------
<TABLE>
<CAPTION>
Exhibit Page
Number Description Number
- --------- ---------------------------------------------- ------
<S> <C> <C>
11 Statement re Computation of Per Share Earnings
for the Three Months and Six Months ended
June 30, 1997 and June 30, 1996 (Unaudited) 14
27 Financial Data Schedule 15
</TABLE>
13
<PAGE>
EXHIBIT 11
STATEMENT RE COMPUTATION OF PER SHARE EARNINGS
<TABLE>
<CAPTION>
THREE MONTHS SIX MONTHS
ENDED JUNE 30, ENDED JUNE 30,
------------------------ -----------------------
1997 1996 1997 1996
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net income available to common stockholders $ 867,723 $ 499,424 $1,431,200 $ 585,244
Accrued dividends on preferred stock - - - 82,346
---------- ---------- ---------- ----------
Net income for computing net income per share $ 867,723 $ 499,424 $1,431,200 $ 667,590
========== ========== ========== ==========
Weighted average common shares outstanding,
assuming conversion of all preferred stock 5,387,981 5,261,443 5,370,472 4,628,413
Shares of common stock assumed to be issued upon
exercise of common stock options and warrants to
purchase common stock using treasury stock method 441,019 498,557 440,528 489,587
---------- ---------- ---------- ----------
Weighted average number of common and common
equivalent shares outstanding during the period 5,829,000 5,760,000 5,811,000 5,118,000
========== ========== ========== ==========
Net income per share $ 0.15 $ 0.09 $ 0.25 $ 0.13
========== ========== ========== ==========
</TABLE>
14
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 6-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1997
<PERIOD-START> APR-01-1997 JAN-01-1997
<PERIOD-END> JUN-30-1997 JUN-30-1997
<CASH> 3,081,137 3,081,137
<SECURITIES> 17,085,472 17,085,472
<RECEIVABLES> 14,527,607 14,527,607
<ALLOWANCES> 4,648,404 4,648,404
<INVENTORY> 0 0
<CURRENT-ASSETS> 32,323,593 32,323,593
<PP&E> 6,293,877 6,293,877
<DEPRECIATION> 2,227,407 2,227,407
<TOTAL-ASSETS> 38,787,356 38,787,356
<CURRENT-LIABILITIES> 1,826,057 1,826,057
<BONDS> 0 0
0 0
0 0
<COMMON> 27,026 27,026
<OTHER-SE> 35,523,312 35,523,312
<TOTAL-LIABILITY-AND-EQUITY> 38,787,356 38,787,356
<SALES> 9,285,139 17,130,125
<TOTAL-REVENUES> 9,285,139 17,130,125
<CGS> 0 0
<TOTAL-COSTS> 7,942,838 14,957,021
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 63,492 144,912
<INCOME-PRETAX> 1,541,147 2,555,713
<INCOME-TAX> 673,424 1,124,513
<INCOME-CONTINUING> 867,723 1,431,200
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 867,723 1,431,200
<EPS-PRIMARY> 0.15 0.25
<EPS-DILUTED> 0.15 0.25
</TABLE>
