UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
X Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
---
Exchange Act of 1934 for the Quarterly Period Ended June 30, 1996
Transition Report Pursuant to Section 13 or 15(d) of the Securities
---
Exchange Act of 1934
COMMISSION FILE NUMBER 1-5103
BARNWELL INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 72-0496921
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1100 ALAKEA STREET, SUITE 2900, HONOLULU, HAWAII 96813
(Address of principal executive offices) (Zip code)
(808) 531-8400
(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
requirement for the past 90 days.
Yes X No
----- -----
As of August 12, 1996 there were 1,322,052 shares of common stock, par value
$0.50 per share, outstanding.
<PAGE>
BARNWELL INDUSTRIES, INC.
-------------------------
AND SUBSIDIARIES
----------------
INDEX
-----
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements
Condensed Consolidated Balance Sheets
June 30, 1996 and September 30, 1995 (Unaudited)
Consolidated Statements of Operations and Retained Earnings
three and nine months ended June 30, 1996 and 1995 (Unaudited)
Condensed Consolidated Statements of Cash Flows
nine months ended June 30, 1996 and 1995 (Unaudited)
Notes to Condensed Consolidated Financial Statements (Unaudited)
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
PART II. OTHER INFORMATION:
Item 6. Exhibits and reports on Form 8-K
<PAGE>
<TABLE>
<CAPTION>
BARNWELL INDUSTRIES, INC.
-------------------------
AND SUBSIDIARIES
----------------
CONDENSED CONSOLIDATED BALANCE SHEETS
-------------------------------------
(Unaudited, see Note A below)
June 30, September 30,
1996 1995
------------- ------------
<S> <C> <C>
ASSETS
- ------
CURRENT ASSETS:
Cash $ 3,365,000 $ 2,976,000
Accounts receivable 2,353,000 2,485,000
Other current assets 553,000 663,000
------------- ------------
TOTAL CURRENT ASSETS 6,271,000 6,124,000
INVESTMENT IN LAND 1,044,000 648,000
OTHER ASSETS 851,000 1,011,000
NET PROPERTY AND EQUIPMENT 21,790,000 20,997,000
------------- ------------
TOTAL ASSETS $ 29,956,000 $ 28,780,000
============= ============
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
CURRENT LIABILITIES:
Accounts payable $ 1,307,000 $ 1,065,000
Accrued expenses 610,000 523,000
Other current liabilities 1,357,000 893,000
------------- ------------
TOTAL CURRENT LIABILITIES 3,274,000 2,481,000
------------- ------------
LONG-TERM DEBT 11,100,000 11,100,000
------------- ------------
DEFERRED INCOME TAXES 4,598,000 4,837,000
------------- ------------
STOCKHOLDERS' EQUITY:
Common stock, par value $.50 per share:
Authorized, 4,000,000 shares
Issued, 1,642,797 shares 821,000 821,000
Additional paid-in capital 3,103,000 3,103,000
Retained earnings 13,731,000 12,891,000
Foreign currency translation adjustments and other (1,966,000) (1,748,000)
Treasury stock, at cost, 320,745 shares (4,705,000) (4,705,000)
------------- ------------
TOTAL STOCKHOLDERS' EQUITY 10,984,000 10,362,000
------------- ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 29,956,000 $ 28,780,000
============= ============
<FN>
Note A: The balance sheet at September 30, 1995 has been taken from the audited
financial statements at that date and condensed.
See Notes to Condensed Consolidated Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
BARNWELL INDUSTRIES, INC.
-------------------------
AND SUBSIDIARIES
----------------
CONSOLIDATED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS
-----------------------------------------------------------
(Unaudited)
Three months ended Nine months ended
June 30, June 30,
------------------------- --------------------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues:
Oil and natural gas $ 2,710,000 $ 2,490,000 $ 7,980,000 $ 7,780,000
Contract drilling 480,000 670,000 1,890,000 3,170,000
Interest income and other 230,000 130,000 630,000 460,000
----------- ----------- ----------- -----------
3,420,000 3,290,000 10,500,000 11,410,000
----------- ----------- ----------- -----------
Cost and expenses:
Oil and natural gas operating 825,000 795,000 2,571,000 2,561,000
Contract drilling operating 332,000 521,000 1,357,000 2,316,000
General and administrative 773,000 791,000 2,317,000 2,882,000
Depreciation, depletion and
amortization 794,000 708,000 2,405,000 2,191,000
Interest expense 180,000 201,000 550,000 535,000
Minority interest in losses - (18,000) - (262,000)
----------- ----------- ----------- -----------
2,904,000 2,998,000 9,200,000 10,223,000
----------- ----------- ----------- -----------
Earnings before income taxes 516,000 292,000 1,300,000 1,187,000
Provision for income taxes 236,000 152,000 460,000 707,000
----------- ----------- ----------- -----------
NET EARNINGS 280,000 140,000 840,000 480,000
Retained earnings -
beginning of period 13,451,000 12,581,000 12,891,000 12,439,000
Cash dividends declared - - - (198,000)
----------- ----------- ----------- -----------
Retained earnings - end of period $13,731,000 $12,721,000 $13,731,000 $12,721,000
=========== =========== =========== ===========
NET EARNINGS PER COMMON SHARE $ 0.21 $ 0.11 $ 0.63 $ 0.36
=========== =========== =========== ===========
Cash dividends declared per share $ - $ - $ - $ 0.15
=========== =========== =========== ===========
<FN>
See Notes to Consolidated Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
BARNWELL INDUSTRIES, INC.
-------------------------
AND SUBSIDIARIES
----------------
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
-----------------------------------------------
(Unaudited)
Nine months ended
June 30,
-----------------------------
1996 1995
----------- ------------
<S> <C> <C>
Cash Flows from Operating Activities:
Net earnings $ 840,000 $ 480,000
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation, depletion, and amortization 2,405,000 2,191,000
Deferred income taxes (192,000) (1,313,000)
Minority interest in losses - (262,000)
----------- -----------
3,053,000 1,096,000
All other 1,073,000 (383,000)
----------- -----------
Net cash provided by operating activities 4,126,000 713,000
----------- -----------
Cash Flows from Investing Activities:
Capital expenditures - oil and gas segment (3,861,000) (2,549,000)
Additions to investment in land (536,000) (108,000)
Capital expenditures - contract drilling and other (60,000) (144,000)
Proceeds from sales of oil and gas property and
equipment 410,000 289,000
Decrease (increase) in long-term other assets 208,000 (9,000)
----------- -----------
Net cash used in investing activities (3,839,000) (2,521,000)
----------- -----------
Cash Flows from Financing Activities:
Net contributions from
joint venture minority interest owner 140,000 -
Long-term debt borrowings - 2,000,000
Payment of dividends - (198,000)
----------- -----------
Net cash provided by financing activities 140,000 1,802,000
----------- -----------
Effect of exchange rate changes on cash (38,000) (66,000)
----------- -----------
Net increase (decrease) in cash 389,000 (72,000)
Cash at beginning of period 2,976,000 4,198,000
----------- -----------
Cash at end of period $ 3,365,000 $ 4,126,000
=========== ===========
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest $ 578,000 $ 544,000
=========== ===========
Income taxes $ 161,000 $ 2,971,000
=========== ===========
<FN>
See Notes to Condensed Consolidated Financial Statements
</TABLE>
<PAGE>
BARNWELL INDUSTRIES, INC.
-------------------------
AND SUBSIDIARIES
----------------
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
----------------------------------------------------
(Unaudited)
1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
-------------------------------------------
The Condensed Consolidated Balance Sheet as of June 30, 1996, the
Consolidated Statements of Operations and Retained Earnings for the three and
nine months ended June 30, 1996 and 1995, and the Condensed Consolidated
Statements of Cash Flows for the nine months ended June 30, 1996 and 1995 have
been prepared by Barnwell Industries, Inc. (referred to herein together with its
subsidiaries as "Barnwell" or the "Company") without audit. In the opinion of
management, all adjustments (which include only normal recurring adjustments)
necessary to present fairly the financial position, results of operations and
cash flows at June 30, 1996 and for all periods presented have been made.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted. It is suggested that these condensed
consolidated financial statements be read in conjunction with the financial
statements and notes thereto included in the Company's September 30, 1995 annual
report to stockholders. The results of operations for the period ended
June 30, 1996 are not necessarily indicative of the operating results for the
full year.
A reclassification of oil and gas segment capital expenditures has been
made to the Condensed Consolidated Statements of Cash Flows for the nine months
ended June 30, 1995 to conform to the classification used in the Condensed
Consolidated Statements of Cash Flows for the nine months ended June 30, 1996.
2. EARNINGS PER COMMON SHARE
-------------------------
Earnings per share for the three and nine months ended June 30, 1996 are
based on 1,324,373 and 1,324,521, respectively, of weighted average outstanding
common shares during each period, after consideration of the dilutive effect of
outstanding stock options and convertible securities. Earnings per share for
the three and nine months ended June 30, 1995 are based on weighted average
outstanding common shares of 1,322,052.
3. INCOME TAXES
------------
The components of the provision for income taxes for the three and nine
months ended June 30, 1996 and 1995 are as follows:
Three months ended Nine months ended
June 30, June 30,
-------------------------- ------------------------
1996 1995 1996 1995
---------- ---------- --------- ----------
Current - U.S. $ 10,000 $1,440,000 $ 35,000 $1,490,000
Current - Foreign 551,000 252,000 617,000 530,000
---------- ---------- --------- ----------
Total - Current 561,000 1,692,000 652,000 2,020,000
---------- ---------- --------- ----------
Deferred - U.S. (10,000) (1,470,000) (35,000) (1,520,000)
Deferred - Foreign (315,000) (70,000) (157,000) 207,000
---------- ---------- --------- ----------
Total - Deferred (325,000) (1,540,000) (192,000) (1,313,000)
---------- ---------- --------- ----------
$ 236,000 $ 152,000 $ 460,000 $ 707,000
========== ========== ========= ==========
<PAGE>
4. NEW STATEMENT OF FINANCIAL ACCOUNTING STANDARDS
-----------------------------------------------
In October 1995, the Financial Accounting Standards Board issued SFAS 123,
"Accounting for Stock-Based Compensation." SFAS 123 establishes a new, fair
value based method of measuring stock-based compensation, but does not require
an entity to adopt the new method for purposes of preparing its basic financial
statements. For entities not adopting the new method, SFAS 123 requires
disclosure in the footnotes of proforma net earnings and earnings per share
information as if the fair value based method had been adopted. Adoption of
SFAS 123 is required for no later than the Company's year ending September 30,
1997. The Company has not yet determined if it will adopt the fair value based
method of accounting for stock-based compensation for purposes of preparing its
basic financial statements.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
-----------------------------------------------------------------------
OF OPERATIONS
-------------
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
Net cash flows provided by operating activities for the nine months ended
June 30, 1996 totaled $4,126,000, as compared to $713,000 for the first nine
months of the prior year, an increase of $3,413,000. This increase is largely
attributable to income tax payments of $2,971,000 in the prior year period, of
which $1,350,000 was related to the April 30, 1995 expiration of the option
under which Hualalai Development Company (formerly Kaupulehu Makai Venture)
could have acquired Kaupulehu Developments' leasehold interest in conservation
zoned property in North Kona, Hawaii; the remaining prior year income tax
payments relate to Canadian income taxes. Cash and working capital at
June 30, 1996 were $3,365,000 and $2,997,000, respectively.
The Company's revolving credit facility with its Canadian bank has been
renewed through March 1, 1997 for $15,000,000 Canadian dollars (reduced from the
prior year amount of $16,000,000 Canadian dollars) or its U.S. dollar equivalent
of approximately $11,000,000. If after March 1997 the facility is converted to
a five-year term loan, the Company has agreed to the following repayment
schedule of the then outstanding balance: year 1 - 30%; year 2 - 27%; year
3 - 16%; year 4 - 14%; year 5 - 13%. The Company had approximately $1,900,000
of available credit under the facility at June 30, 1996.
The Dunvegan Unit owners have approved the construction of a sour natural
gas plant which will enable the Company to process and sell production from
currently shut in sour gas wells, as well as generate additional gas processing
fees from non-unit natural gas. The Company estimates that capital expenditures
for this plant will total approximately $900,000. Approximately $470,000 of
this amount was incurred as of June 30, 1996 with the remainder estimated to be
incurred by September 30, 1996.
<PAGE>
During the quarter ended June 30, 1996, the Company invested $1,051,000 in
oil and natural gas properties, as compared to $623,000 during the prior year's
third quarter. Additionally, the Company sold two non-core, non-producing
properties for $410,000 during the three months ended June 30, 1996, as compared
to $289,000 of proceeds from a property sale during the same period in the prior
year; no revenue or income was recognized as these proceeds were credited to the
full cost pool. The increase in capital expenditures was due to $190,000 of
expenditures towards the construction of the aforementioned sour natural gas
plant in the Dunvegan area and the Company's participation in the drilling of 4
wells in Alberta, Canada and North Dakota as follows:
Productive Productive
Oil Wells Gas Wells Dry Holes Total Wells
----------- ----------- ----------- ------------
Exp. Dev. Exp. Dev. Exp. Dev. Exp. Dev.
---- ---- ---- ---- ---- ---- ---- ----
Gross 1.00 - - 2.00 - 1.00 1.00 3.00
Net 0.12 - - 0.18 - 0.25 0.12 0.43
During the nine months ended June 30, 1996, the Company invested $3,861,000
in oil and natural gas properties, as compared to $2,549,000 during the prior
year period, by participating in the construction of the aforementioned sour
natural gas plant and in the drilling of 27 wells in Alberta, Canada and North
Dakota as follows:
Productive Productive
Oil Wells Gas Wells Dry Holes Total Wells
----------- ----------- ----------- ------------
Exp. Dev. Exp. Dev. Exp. Dev. Exp. Dev.
---- ---- ---- ---- ---- ---- ---- ----
Gross 2.00 8.00 3.00 7.00 2.00 5.00 7.00 20.00
Net 0.27 1.82 0.59 0.83 0.42 0.67 1.28 3.32
In addition to participating in well drilling activities, the Company
participated in the successful recompletion of 2 gas wells (0.15 net well) and 3
oil wells (0.76 net well) during the nine months ended June 30, 1996.
Subsequent to June 30, 1996, the Company participated in the drilling of 3
wells. These 3 wells were dry and abandoned.
"Net well" refers to Barnwell's aggregate participating interest in a given
number of gross wells. For example, a 50% interest in a well represents one
gross well, but 0.50 net well. The gross figure includes Barnwell's interest,
as well as the portion owned by others.
The Company expects to invest a total of approximately $5,000,000 in oil
and gas properties in fiscal 1996, including the aforementioned $900,000 of
estimated expenditures for the Dunvegan sour natural gas plant.
The Company invested $536,000 towards the rezoning of the North Kona,
Hawaii, property held by Kaupulehu Developments, a 50.1% owned joint venture,
and invested $60,000 in contract drilling assets for the nine months ended
June 30, 1996.
<PAGE>
In June of 1996, the Company received the approval of the Land Use
Commission of the State of Hawaii ("LUC") of Kaupulehu Developments' petition
filed in 1993 for reclassification of approximately 1,000 acres of land into the
Urban District for resort/residential development. Subsequent to this approval,
a notice of appeal was filed with the Third Circuit Court of the State of Hawaii
by parties seeking to reverse the LUC's decision. The Company cannot predict
the outcome of this appeal.
RESULTS OF OPERATIONS
- ---------------------
Oil and Gas
- -----------
SELECTED OPERATING STATISTICS
-----------------------------
Average Prices
------------------------------------------------
Three months ended Increase
June 30, (Decrease)
------------------------ ------------------
1996 1995 $ %
--------- --------- -------- -------
Oil (Bbls)* $ 18.57 $ 17.86 0.71 4
Liquids (Bbls)* $ 14.55 $ 12.17 2.38 20
Gas (MCF)** $ 1.19 $ 0.98 0.21 21
Nine months ended Increase
June 30, (Decrease)
------------------------ ------------------
1996 1995 $ %
--------- --------- -------- -------
Oil (Bbls)* $ 16.38 $ 15.73 0.65 4
Liquids (Bbls)* $ 12.96 $ 11.32 1.64 14
Gas (MCF)** $ 1.12 $ 1.06 0.06 6
Net Sales Volumes
------------------------------------------------
Three months ended Increase
June 30, (Decrease)
------------------------ ------------------
1996 1995 Units %
--------- --------- -------- -------
Oil (Bbls)* 52,000 48,000 4,000 8
Liquids (Bbls)* 17,000 29,000 (12,000) (41)
Gas (MCF)** 1,008,000 1,039,000 (31,000) (3)
Nine months ended Increase
June 30, (Decrease)
------------------------- ------------------
1996 1995 Units %
--------- ---------- -------- -------
Oil (Bbls)* 153,000 151,000 2,000 1
Liquids (Bbls)* 60,000 71,000 (11,000) (15)
Gas (MCF)** 3,416,000 3,473,000 (57,000) (2)
*Bbls = stock tank barrel equivalent to 42 U.S. gallons
**MCF = 1,000 cubic feet
Oil and natural gas revenues increased $220,000 (9%) for the three months
ended June 30, 1996, as compared to the same period in 1995, due primarily to
21% and 20% increases in the prices of natural gas and natural gas liquids,
respectively. The increases were partially offset by 3% and 41% decreases in
sales volumes of natural gas and natural gas liquids, respectively.
Oil and natural gas revenues increased $200,000 (3%) for the nine months
ended June 30, 1996, as compared to the same period in 1995, due primarily to
6% and 14% increases in the prices of natural gas and natural gas liquids,
respectively, partially offset by 2% and 15% decreases in sales volumes of
natural gas and natural gas liquids, respectively.
<PAGE>
Contract Drilling
- -----------------
Contract drilling revenues and costs are associated with water well
drilling and water pump installation in Hawaii. Contract drilling revenues
decreased $190,000 (28%) and $1,280,000 (40%), respectively, for the three and
nine months ended June 30, 1996, as compared to the same periods in 1995, due to
lower water well drilling and pump installation activity in the current year
periods. As a result of the lower activity, operating profit before
depreciation decreased $321,000 (38%) for the nine months ended June 30, 1996,
as compared to the same period in 1995. However, as there were no drilling
difficulties encountered during the current quarter, operating profit before
depreciation as a percentage of revenues increased to 31% and 28% for the three
and nine months ended June 30, 1996, respectively, as compared to 22% and 27% in
the three and nine month periods of the prior year, respectively. As a result
of continuing competitive pressures within the industry due to lower demand for
water well drilling in Hawaii, the Company expects operating profit before
depreciation, in dollars and as a percentage of revenues, to be lower during the
last quarter of the 1996 fiscal year as compared to the quarterly average of the
current nine month period.
Interest Income and Other
- -------------------------
Interest income and other increased $100,000 (77%) and $170,000 (37%) for
the three and nine months ended June 30, 1996, respectively, as compared to the
same periods in 1995, due to increases in natural gas processing income, chiefly
from non-unit gas processed at the Dunvegan gas plant, partially offset by
decreases in interest income as a result of lower average cash balances.
General and Administrative Expenses
- -----------------------------------
General and administrative expenses decreased $565,000 (20%) for the nine
months ended June 30, 1996, as compared to the same period in 1995, as
$428,000 of costs incurred by Kaupulehu Developments for the rezoning of
leasehold property under option were included in general and administrative
expenses during the nine months ended June 30, 1995. For the nine months
ended June 30, 1996, rezoning costs incurred by Kaupulehu Developments were
related to leasehold property no longer under option and were accordingly
capitalized and included in investment in land. The remaining decrease was
largely attributable to a reduction in personnel costs.
<PAGE>
Depreciation, Depletion and Amortization
- ----------------------------------------
Depreciation, depletion and amortization increased $86,000 (12%) and
$214,000 (10%) for the three and nine months ended June 30, 1996, respectively,
as compared to the same periods in 1995, due to an increase in depletion,
partially offset by decreased depreciation expense. Depletion increased due a
higher depletion rate partially due to the current year's estimated capital
expenditures for the Dunvegan sour natural gas plant, which does not result in
an increase in reserves. Depreciation decreased because certain water well
drilling assets became fully depreciated during the prior fiscal year.
Interest Expense
- ----------------
Interest expense decreased $21,000 (10%) for the three months ended
June 30, 1996, as compared to the same period in 1995, due to slightly lower
average loan balances and interest rates and the capitalization of interest
costs related to the Company's investment in land in the current period.
Income Taxes
- ------------
In November 1995, officials of the U.S. and Canada formally ratified a new
agreement amending the Canada-U.S. Tax Treaty that reduces the Canadian Branch
tax, effective January 1, 1996, from 10% to 6% and, effective January 1, 1997,
to 5%. This change resulted in the recognition of a deferred income tax benefit
of $290,000 in the first quarter ended December 31, 1995, which is included in
the nine months ended June 30, 1996.
New Statement of Financial Accounting Standards
- -----------------------------------------------
In October 1995, the Financial Accounting Standards Board issued SFAS 123,
"Accounting for Stock-Based Compensation." SFAS 123 establishes a new, fair
value based method of measuring stock-based compensation, but does not require
an entity to adopt the new method for preparing its basic financial statements.
For entities not adopting the new method, SFAS 123 requires disclosure in the
footnotes of proforma net earnings and earnings per share information as if the
fair value based method had been adopted. Adoption of SFAS 123 is required for
no later than the Company's year ending September 30, 1997. The Company has not
yet determined if it will adopt the fair value based method of accounting for
stock-based compensation for purposes of preparing its basic financial
statements.
<PAGE>
PART II. OTHER INFORMATION
Item 6. Exhibits and reports on Form 8-K
None.
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.
BARNWELL INDUSTRIES, INC.
-------------------------
(Registrant)
/s/ Russell M. Gifford
-------------------------
Russell M. Gifford
Vice President and
Chief Financial Officer
Date: August 13, 1996
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from
Barnwell Industries Inc.'s 1996 third quarter 10-QSB and is
qualified in its entirety by reference to such 10-QSB.
</LEGEND>
<CIK> 0000010048
<NAME> BARNWELL INDUSTRIES INC.
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> JUN-30-1996
<CASH> 3365
<SECURITIES> 0
<RECEIVABLES> 2416
<ALLOWANCES> 63
<INVENTORY> 70
<CURRENT-ASSETS> 6271
<PP&E> 51634
<DEPRECIATION> 29844
<TOTAL-ASSETS> 29956
<CURRENT-LIABILITIES> 3274
<BONDS> 11100
0
0
<COMMON> 821
<OTHER-SE> 10163
<TOTAL-LIABILITY-AND-EQUITY> 29956
<SALES> 9870
<TOTAL-REVENUES> 10500
<CGS> 3928
<TOTAL-COSTS> 3928
<OTHER-EXPENSES> 2405
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 550
<INCOME-PRETAX> 1300
<INCOME-TAX> 460
<INCOME-CONTINUING> 840
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 840
<EPS-PRIMARY> .63
<EPS-DILUTED> 0
</TABLE>
