<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
/X/ QUARTERLY REPORT PURSUANT TO SECTION 12 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 000-28052
EN POINTE TECHNOLOGIES, INC
(Exact name of registrant as specified in its charter)
State or other jurisdiction of I.R.S. Employer I. D.
incorporation or organization: Delaware Number: 75-2467002
100 N. Sepulveda Blvd., 19th Floor
El Segundo, California 90245
(Address of principal executive offices) (ZIP CODE)
Registrant's telephone number, including area code: (310) 725-5200
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
--- ---
As of February 16, 1999, 5,934,635 shares of Common Stock of the Registrant
were issued and outstanding.
<PAGE>
INDEX
En Pointe Technologies, Inc.
<TABLE>
<CAPTION>
<S> <C> <C>
PART I FINANCIAL INFORMATION Page
- ------ --------------------- ----
Item 1 Financial Statements
Condensed Consolidated Balance Sheets - December 31,
1998 and September 30, 1998 3
Condensed Consolidated Statements of Operations - Three
months ended December 31, 1998 and 1997 4
Condensed Consolidated Statements of Cash Flows -
Three months ended December 31, 1998 and 1997 5
Notes to Condensed Consolidated Financial
Statements - December 31, 1998 6
Item 2 Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
PART II OTHER INFORMATION
Item 1 Legal Proceedings 11
Item 6 Exhibits and Reports on Form 8-K 11
SIGNATURES 12
</TABLE>
2
<PAGE>
En Pointe Technologies, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
<TABLE>
<CAPTION>
December 31, September 30,
1998 1998
------------ -------------
(Unaudited)
ASSETS:
<S> <C> <C>
Current assets:
Cash $ 2,711 $ 3,365
Restricted cash 1,428 1,999
Marketable securities 3262 --
Accounts receivable, net 116,173 101,956
Inventories 5,897 7,009
Prepaid expenses and other current assets 643 448
-------- --------
Total current assets 130,114 114,777
Property and equipment, net of accumulated
depreciation 15,730 16,113
Other assets 1,076 1,677
-------- --------
Total assets $146,920 $132,567
-------- --------
-------- --------
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Borrowings under lines of credit $ 79,090 $ 79,598
Accounts payable 17,681 8,838
Accrued liabilities 6,464 5,015
Other current liabilities 620 564
Current portion of notes payable 799 790
Deferred taxes 1,248 141
-------- --------
Total current liabilities 105,902 94,946
Notes payable 8,364 6,602
-------- --------
Total liabilities 114,266 101,548
Stockholders' equity:
Common stock 6 6
Additional paid-in capital 18,880 18,757
Treasury stock -- (6)
Retained earnings 12,175 12,262
Unrealized holding gains 1593 --
-------- --------
Total stockholders' equity: 32,654 31,019
-------- --------
Total liabilities and stockholders' equity $146,920 $132,567
-------- --------
-------- --------
</TABLE>
See Notes to Condensed Consolidated Financial Statements
3
<PAGE>
EN POINTE TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
Three months ended
December 31
-------------------------
1998 1997
-------- --------
<S> <C> <C>
Net sales $170,607 $130,189
Cost of sales 157,225 116,798
-------- --------
Gross profit 13,382 13,391
Selling and marketing expenses 8,765 8,130
General and administrative expenses 3,940 2,956
-------- --------
Operating income 677 2,305
Interest expense 855 427
Other income, net (31) (53)
-------- --------
Income (loss) before income taxes (147) 1,931
Provision for income taxes (60) 792
-------- --------
Net income (loss) $ (87) $ 1,139
-------- --------
-------- --------
Net income (loss) per share:
Basic $ (0.01) $ 0.19
-------- --------
-------- --------
Diluted $ (0.01) $ 0.18
-------- --------
-------- --------
Weighted average shares outstanding:
Basic 5,924 5,843
-------- --------
-------- --------
Diluted 5,924 6,302
-------- --------
-------- --------
</TABLE>
See Notes to Condensed Consolidated Financial Statements
4
<PAGE>
EN POINTE TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
Three months ended
December 31,
--------------------------
1998 1997
------- -------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ (87) $ 1,139
Adjustments to reconcile net income (loss) to
net cash used by operations:
Depreciation and amortization 686 372
Deferred compensation 7
Allowance for inventory and doubtful accounts (142) 90
Net change in operating assets and
liabilities (2,200) (3,080)
------- -------
Net cash provided (used) by operating activities (1,743) (1,472)
Cash flows from investing activities:
Purchase of property and equipment (303) (1,643)
------- -------
Net cash used by investing activities (303) (1,643)
Cash flows from financing activities:
Net borrowings (payments) under lines of credit (508) 854
Proceeds from notes payable 2000 --
Payment on notes payable (229) (91)
Proceeds from sales of stock to employees 129 303
------- -------
Net cash provided by financing activities 1,392 1,066
------- -------
Decrease in cash $ (654) $(2,049)
------- -------
------- -------
Supplemental disclosures of cash flow
information:
Interest paid $ 855 $ 277
------- -------
------- -------
Income taxes paid $ 2,198 $ 150
------- -------
------- -------
Long-term debt acquired in purchase of plant $4,000
-------
-------
Unrealized gain on equity holdings, net of taxes $ 1,593
-------
-------
</TABLE>
See Notes to Condensed Consolidated Financial Statements
5
<PAGE>
EN POINTE TECHNOLOGIES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1 - BASIS OF PRESENTATION AND GENERAL INFORMATION
In the opinion of management, the unaudited condensed consolidated balance
sheet of En Pointe Technologies, Inc. (the "Company" or "En Pointe") at
December 31, 1998, and the unaudited condensed consolidated statements of
income and unaudited condensed consolidated statements of cash flows for the
interim periods ended December 31, 1998 and 1997 include all adjustments
(consisting only of normal recurring adjustments) necessary to present fairly
these financial statements.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. The year-end balance sheet data
was derived from audited financial statements, but does not include
disclosures required by generally accepted accounting principles. Operating
results for the three months ended December 31, 1998 are not necessarily
indicative of the results that may be expected for the year ending September
30, 1999. It is suggested that these condensed statements be read in
conjunction with the Company's most recent Form 10-K and Annual Report as of
September 30, 1998.
The preparation of financial statements in conformity with generally accepted
accounting principles requires Management to make certain estimates and
assumptions that affect the reported amount of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reported period. Significant estimates in these financial statements include
allowances for uncollectible accounts receivable and for unreimbursed product
returns and the net realizable value of rebates. Actual results could differ
from those estimates.
This Form 10-Q contains forward-looking statements which involve risks and
uncertainties. The Company's actual results may differ significantly from the
results discussed in the forward-looking statements and their inclusion
should not be regarded as a representation by the Company or any other person
that the objectives or plans will be achieved. Factors that might cause such
a difference include, but are not limited to, competitive, technological,
financial and business challenges making it more difficult than expected to
continue to sell information technology products and services. The Company
may be unable to retain existing key sales, technical and management
personnel; there may be other material adverse changes in the information
technology industry or in the Company's operations or business, and any or
all of these factors may affect the Company's ability to continue its current
rate of sales growth or may result in lower sales volume than currently
experienced.
Certain important factors affecting the forward-looking statements made
herein include, but are not limited to (I) A Significant portion of the
Company's sales continuing to be to certain large customers, (II) Continued
dependence by the Company on certain Allied Distributors, (III) Continued
downward pricing pressures in the information technology market, (IV) The
decision by the Company to expand its sales force into various new geographic
territories (V) Quarterly fluctuations in results (VI) Seasonal patterns of
sales and client buying behaviors (VII) Changing economic influences in the
industry (VIII) The development by competitors of new or superior delivery
technologies or entry in the market by new competitors (IX) Dependence on
intellectual property rights (X)Delays in product development (XI)The
company's dependence on key personnel, and potential influence by executive
6
<PAGE>
officers and principal stockholders (XII) Volatility of the company's stock
price (XIII) Delays in the receipt of orders or in the shipment of products
(XIV) Any delay in execution of the company's system development plans (XV)
Loss of minority ownership status (XVI) Planned or unplanned changes in the
quantity and/or quality of the suppliers available for the company's products
(XVII) Changes in the costs or availability of products (XVIII) Interruptions
in transport or distribution (XIX) General business conditions in the
economy. Assumptions relating to budgeting, marketing, and other management
decisions are subjective in many respects and thus susceptible to
interpretations and periodic revisions based on actual experience and
business developments, the impact of which may cause the Company to alter its
marketing, capital expenditure or other budgets, which may in turn affect the
Company's business, financial position, results of operations and cash flows.
The reader is therefore cautioned not to place undue reliance on
forward-looking statements contained herein and to consider other risks
detailed more fully in the Company's most recent Form 10-K and Annual Report
as of September 30, 1998.
NOTE 2 - RECENTLY ISSUED ACCOUNTING STANDARDS
Effective October 1, 1998, the Company adopted Statement of Financial
Accounting Standards (SFAS) No. 130, "Reporting Comprehensive Income." This
Statement requires that companies disclose comprehensive income, which
includes net income and unrealized gains and losses on marketable securities
classified as available-for-sale. The unrealized gain of $1.6 million in
marketable securities for the three months ended December 31, 1998 is net of
a taxes of $1.1 million.
In June 1997, the Financial Accounting Standards Board ("FASB") issued a new
Statement, SFAS No. 131, "Disclosures about Segments of an Enterprise and
Related Information", which establishes new requirements for the reporting of
segment information by public companies. It supersedes SFAS No. 14, Financial
Reporting for Segments of a Business Enterprise, and is effective for the
annual financial statements of fiscal years beginning after December 15,
1997. The new framework for segment reporting is referred to as the
management approach. It is intended to give analysts and other
financial-statement users a view of the company "through the eyes of
management", by looking to a company's internal management reporting
structure as the basis for determining the company's external segments, as
well as the basis for determining the information that is to be disclosed for
those segments. The Company is currently assessing the impact this Statement
will have on the consolidated financial statements.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The forward-looking statements included in Management's Discussion and
Analysis of Financial Condition and Results of Operations, which reflect
management's best judgment based on factors currently known, involve risks
and uncertainties. Actual results could differ materially from those
anticipated in these forward-looking statements as a result of a number of
factors, including but not limited to those discussed below. Forward-looking
information provided by En Pointe pursuant to the safe harbor established by
recent securities legislation should be evaluated in the context of these
factors.
The following table sets forth certain financial data as a percentage of net
sales for the periods indicated:
7
<PAGE>
<TABLE>
<CAPTION>
Three Months Ended
December 31,
------------------
1998 1997
------ ------
<S> <C> <C>
Net sales...................................... 100.0% 100.0%
Cost of sales.................................. 92.2 89.7
----- -----
Gross Profit................................. 7.8 10.3
Selling and marketing expenses................. 5.1 6.2
General and administrative expenses............ 2.3 2.3
----- -----
Operating income............................. 0.4 1.8
Interest expense............................... 0.5 0.3
Other income, net.............................. -- --
----- -----
Income (loss) before taxes................... (0.1) 1.5
Provision for income taxes..................... 0.0 0.6
----- -----
Net income (loss)............................ (0.1)% 0.9%
----- -----
----- -----
</TABLE>
COMPARISON OF THE FIRST QUARTER ENDED DECEMBER 31, 1998 (FISCAL 1999) AND
1997 (FISCAL 1998)
NET SALES. Net sales increased $40.4 million, or 31.0% to $170.6 in
the first quarter of fiscal 1999 from $130.2 million in fiscal 1998. The
increase in sales was attributable to sales to new customers, increased sales
to existing customers, and increased sales of value-added services. Four new
branches contributed $9.2 million in net sales. Firstsource.com, an Internet
business acquired in June of 1998, contributed $4.7 million for the quarter.
Services revenues increased $2.4 million, or 88.6% to $5.0 million in the
first quarter of fiscal 1999 from $2.6 million in the prior fiscal year quarter
and were 2.9% of total net sales versus 2.0% in the prior fiscal year
quarter. Sales under the IBM contract accounted for 17.9% of total sales in
the first quarter of fiscal 1999 compared with 24.0% for the prior fiscal year
quarter.
GROSS PROFIT. Gross profits remained constant at $13.4 million, but
declined as a percentage of net sales to 7.8% in the first quarter of fiscal
1999 as compared to 10.3% in prior fiscal year quarter and 8.7% in the prior
sequential quarter. Contributing to the decline in gross margins were two
large sales approximating $14 million in total that were at substantially
discounted profit margins. In addition, Firstsource sales of $4.7 million
also bore discounted profit margins. The Ontario configuration center also
had an adverse impact on gross profits due to operations being at less than full
capacity.
SELLING AND MARKETING EXPENSES. Selling and marketing expenses
increased $0.6 million, or 7.8% to $8.8 million in the first quarter of
fiscal 1999, from $8.1 million in prior fiscal year quarter, primarily as a
result of increased net sales volume. As a percentage of net sales,
however, selling and marketing decreased to 5.1% in 1999 from 6.2% in 1998.
GENERAL AND ADMINISTRATIVE EXPENSES. General and administrative
expenses increased $0.9 million, or 33.3% to $3.9 million in the first
quarter of fiscal 1999, from $3.0 million in the prior fiscal year quarter,
primarily as a result of hiring additional personnel necessary to support the
increase in sales and other administrative duties. As a percentage of net
sales, however, general and administrative expenses held firm at 2.3% for
both fiscal periods as well as for the prior sequential quarter.
8
<PAGE>
OPERATING INCOME. Operating income decreased $1.6 million, or 70.6%, to
$0.7 million in the first quarter of fiscal 1999 from $2.3 million in prior
fiscal year quarter. The decrease was primarily a result of flattening of gross
profit margins which were insufficient to cover the increase in operating
expenses resulting from the increase in sales volume. Operating income, as a
percent of net sales, declined to 0.4% in the first fiscal quarter of 1999
from 1.8% in the 1998 fiscal quarter.
INTEREST EXPENSE. Interest expense increased $0.4 million, or 100.2% to
$0.9 million in the first quarter of fiscal 1999 from $0.4 million in the
prior fiscal quarter. The increase in interest expense was primarily due to
increased borrowing under lines of credit, which at the end of the first
quarter of fiscal 1999 had increased $27.5 million or 53.4%. The borrowing
was used primarily to fund the $34.8 million (42.8%) growth in accounts
receivable.
NET INCOME. Net income decreased $1.2 million, to a net loss of $87
thousand in the first quarter of fiscal 1999 from $1.1 million in the prior
fiscal quarter. The decrease in the first quarter of fiscal 1999 was
primarily a result of flattening of gross profit margins which were
insufficient to cover the $1.6 million (14.6%) increase in operating expenses
resulting from the increase in sales volume.
LIQUIDITY AND CAPITAL RESOURCES
During the three months ended December 31, 1998 operating activities used
cash totaling $1.7 million compared to $1.5 million used in the prior fiscal
year. The largest consumer of cash was the growth of accounts receivable
related to the Company's sales expansion. In the first quarter of fiscal
1999, $14.1 million in cash was so expended, while only $4.6 million was used
in the prior fiscal quarter. Historically, the Company has satisfied its
accounts receivable cash requirements principally by borrowings under its
lines of credit. The Company's accounts receivable balance (before
allowances for returns, price protection, and doubtful accounts) at December
31, 1998 and September 30, 1998, was $118.1 million and $103.9 million,
respectively. The number of days' sales outstanding in accounts receivable
increased to 62 days from 58 days, as of December 31, 1998 and September 30,
1998, respectively.
At December 31, 1998, restricted cash amounted to $1.4 million and
related principally to unexpended funds from the $3.5 million of equipment
financing targeted for the Ontario integration, repair, and RMA facility. It
is anticipated that the remaining restricted funds will be applied against
the $3.5 million indebtedness included in notes payable.
Investing activities used cash totaling $0.3 million during the three
months ended December 31, 1998 compared with $1.6 million in the prior fiscal
quarter. Warehouse equipment for the Ontario facility and computer related
purchases were the principal uses for the $0.3 million in expenditures.
Financing activities provided net cash totaling $1.4 million during the
three months ended December 31, 1998. Two long-term notes at 8% due on
September 30, 2000 and 2001 from IBMCC for $1 million each provided the
majority of the financing cash flow.
As of December 31, 1998, the Company had approximately $4.1 million in
cash, including $1.4 million in restricted cash, and working capital of
$24.2 million. The Company has several revolving credit facilities
collateralized by accounts receivable and all other assets of the Company,
including a $73 million line with IBMCC. As of December 31, 1998, such lines
of credit provided for maximum aggregate borrowings of approximately $105.0
million, of which approximately $79.1 million was outstanding.
9
<PAGE>
Outstanding borrowings under the IBMCC line of credit bears interest at
prime less .25%. The line of credit is automatically renewable on an annual
basis unless notification of an election not to renew is made by either the
Company or creditor on or prior to the annual renewal date. Borrowings are
collateralized by substantially all of the Company's assets. In addition,
the line of credit contains certain financing and operating covenants
relating to net worth, liquidity, profitability, repurchase of indebtedness
and prohibition on payment of dividends, as well as restrictions on the use
of proceeds obtained under the line. The Company has obtained a waiver for
non-compliance with certain IBMCC loan covenants at December 31, 1998.
Because of a planned reduction in the scope of operations of the Ontario
configuration facility the Company believes that it will not be able to
recover all of the costs associated with its construction. As a result, the
Company plans to sell and lease back the facility and in doing so anticipates
a non-recurring charge of approximately $5.5 to $6.5 million in connection
with the sale. Because the plan has not been implemented, it is not possible
to quantify the financial impact or its timing.
The Firstsource.com acquisition made in June of 1998 was the Company's
entry into the rapid growth Internet sales arena. Typical of Internet sales
operations, Firstsource.com for the quarter ended December 31, 1998 realized
a loss of $0.4 million. With the significant investment required to
fully launch Firstsource before it can reach a break even point, the Company
believes that a strategic relationship with one or more financial investors
will be necessary and is actively pursuing that course.
YEAR 2000
The Company is aware of the issues associated with the programming code
in existing computer systems as the year 2000 approaches. The "Year 2000"
problem is concerned with whether computer systems will properly recognize
date sensitive information when the year changes to 2000. Systems that do
not properly recognize such information could generate erroneous data or
cause a system to fail. The Year 2000 problems are pervasive and complex as
virtually every company's computer operations may be affected in some way.
As a result of the Company's analysis of its computer programs and operations,
it has reached the conclusion that its own business systems, including its
computer systems are not fully prepared for Year 2000 although management
believes that corrections planned by the Company will not seriously impact or
have a material adverse effect on the Company's expenses, business, including
data gathering and interpretation, or its operations.
It is possible, however, that "Year 2000" problems incurred by the
customers or suppliers of the Company could have a negative impact on future
operations and financial performance of the Company, although the Company has
not been able to specifically identify any such problems among its suppliers.
The Company believes that it will not be dependent upon any single supplier
or customer for its equipment or supplies or sales in the Year 2000; it has
contacted its primary suppliers to determine if they are developing plans to
address processing transactions which may impact the Company. Furthermore,
the Year 2000 problem may impact other entities with which the Company
transacts business and the Company cannot predict the effect of the Year 2000
problem on such entities or the resulting effect on the Company. The Company
has not yet developed a contingency plan to operate in the event that any
non-compliant customer or supplier systems that materially impact the Company
are not remedied in a timely manner and has not yet determined a time table
for developing such a plan. As a result, if preventative and/or corrective
actions by the Company or those entities with which the Company does business
are not made in a timely manner, the Year 2000 issue could have a material
adverse effect on the Company's business, financial condition and results of
operations. However, based on its analysis to date, the expenses of the
Company's efforts to identify and address such problems, or the expenses or
liabilities to which the Company may become subject as a result of such
problems, are not expected to have a material adverse effect on the Company's
business, financial position, results of operations or cash flows. As well,
the purchasing patterns of existing and potential customers may be affected
by Year 2000 problems, which could cause fluctuations in the Company's sales
volumes.
10
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
There are various claims and legal actions pending against the
Company. In the opinion of management, the outcome of such claims
and litigation will not have a material adverse effect upon the
Company's financial position or results of operations. There have
been no material changes in the legal proceedings reported in the
Company's Annual Report on Form 10-K for the year ended September 30,
1998.
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits
Exhibit
Number Description
------- -----------
11 Computation of Earnings Per Common Share
27 Financial Data Schedule for the quarter ended
December 31, 1998
b. The Company did not file any reports on Form 8-K during the three
months ended December 31, 1998.
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.
En Pointe Technologies, Inc.
-----------------------------
(REGISTRANT)
Date: February 16, 1999 By: /s/ Javed Latif
-------------------------------------
Javed Latif, Chief Financial Officer
12
<PAGE>
EN POINTE TECHNOLOGIES, INC.
COMPUTATION OF EARNINGS PER COMMON SHARE
EXHIBIT 11
<TABLE>
<CAPTION>
Three Months ended
BASIC December 31,
(in thousands, except per share data) --------------------
1998 1997
-------- -------
<S> <C> <C>
Net income $ (87) $1,139
------- ------
------- ------
Basis for computation of basic earnings
per common:
Beginning balance of shares outstanding 5,900 5,779
Weighted average number of shares
issued during the period 24 64
------- ------
Total weighted shares outstanding during period 5,924 5,843
------- ------
------- ------
Earnings per share $ (0.01) $ 0.19
------- ------
------- ------
Three Months ended
DILUTED December 31,
(in thousands, except per share data) ------------------
1998 1997
------- ------
Net income $ (87) $1,139
------- ------
------- ------
Basic for computation of diluted earnings
per common and common equivalent share:
Weighted average number of shares
outstanding during period 5,924 5,843
Weighted average (incremental) common
share equivalents after considering the effects
of options and warrants, exercised and
canceled during the period and after assumed
repurchase of treasury shares - 459
------- ------
Total weighted shares 5,924 6,302
------- ------
------- ------
Earnings per share $(0.01) $ 0.18
------- ------
------- ------
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-START> OCT-01-1998
<PERIOD-END> DEC-31-1998
<CASH> 2,711
<SECURITIES> 3,262
<RECEIVABLES> 118,057
<ALLOWANCES> 1,884
<INVENTORY> 6,897
<CURRENT-ASSETS> 130,114
<PP&E> 20,773
<DEPRECIATION> 5,043
<TOTAL-ASSETS> 146,920
<CURRENT-LIABILITIES> 105,902
<BONDS> 8,364
0
0
<COMMON> 6
<OTHER-SE> 32,648
<TOTAL-LIABILITY-AND-EQUITY> 146,920
<SALES> 165,627
<TOTAL-REVENUES> 170,607
<CGS> 157,225
<TOTAL-COSTS> 169,930
<OTHER-EXPENSES> (31)
<LOSS-PROVISION> (73)
<INTEREST-EXPENSE> 855
<INCOME-PRETAX> (147)
<INCOME-TAX> (60)
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (87)
<EPS-PRIMARY> (.01)
<EPS-DILUTED> (.01)
</TABLE>
