<PAGE>
Form 10-Q SB
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 September 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 0-20947
On-Site Sourcing, Inc.
(Exact name of registrant as specified in its charter)
DELAWARE 54-1648470
(State or other jurisdiction of (IRS Employer Identification Number)
incorporation or organization)
1111 N. 19th Street, Suite 600, Arlington, VA 22209
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (703) 276-1123
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 September 30, 1997.
Common Stock 0.01 par value Number of Shares
No Class 4,794,021
Preferred Stock 0.01 par value
No Class None
<PAGE>
On-Site Sourcing,Inc.
Index
Part I. Financial Information. Page No.
Item 1. Financial Statements
Balance sheets -
September 30, 1997 and December 31, 1996 3
Statements of Earnings -
Nine and three months ended September 30, 1997 and 1996 4
Statements of Stockholders Equity
Nine and three months ended September 30, 1997 and 1996 5
Statements of Cash Flows -
Nine and three months ended September 30, 1997 and 1996 6
Condensed notes to financial statements 7-11
Item 2. Managements Discussion and Analysis of Financial
Condition and Results of Operations. 11-13
Part II. Other Information
Item 701(f) Form SR Amended 14
Signatures 15
<PAGE>
ON-SITE SOURCING, INC.
BALANCE SHEETS
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
ASSETS (Unaudited)
----------- ----------
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $2,152,973 $1,894,722
Accounts receivable, net 4,077,390 2,697,248
Prepaid supplies 377,619 188,770
Prepaid expenses 132,232 85,967
------- ------
Total current assets 6,740,214 4,866,707
Property and equipment, net 3,672,171 3,573,127
Note receivable officer 25,000 25,000
Other assets 79,496 73,211
------ ------
$10,516,881 $8,538,045
----------- ----------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable trade $754,971 $552,017
Accrued and other liabilities 1,166,860 289,199
Current portion of long-term debt 333,272 182,153
Deferred taxes 303,028 60,154
------- ------
Total current liabilities 2,558,131 1,083,523
Long-term debt net of current portion 945,426 990,683
Deferred rent 77,994 76,129
Deferred taxes 22,400 14,846
Commitments and contingencies
STOCKHOLDERS' EQUITY
Common stock, $.01 par value, 20,000,000
shares authorized 4,794,021, shares issued
and outstanding 47,940 47,940
Preferred stock,$.01 par value, 1,000,000
Shares authorized, no shares issued and
outstanding -
Subscription receivable (50,400) (50,400)
Additional paid in capital 6,351,911 6,351,911
Common stock options outstanding 66,000 16,500
Retained Earnings 497,479 6,913
------- -----
6,912,930 6,372,864
--------- ---------
$10,516,881 $8,538,045
</TABLE>
See notes to financial statements
<PAGE>
ON-SITE SOURCING, INC.
STATEMENTS OF EARNINGS
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30,
1997 1996 1997 1996
(Unaudited) (Unaudited)
----------- --------- ----------- ---------
<S> <C> <C> <C> <C>
Revenue $13,894,768 $6,368,487 $5,168,454 $2,641,926
Costs and expenses
Cost of sales 10,067,691 4,616,899 3,800,858 1,822,890
---------- --------- --------- ---------
Gross Margin 3,827,077 1,7751,588 1,367,596 819,036
Selling expense 1,630,957 663,143 582,546 354,273
Administrative expense 1,306,318 653,757 498,184 267,172
--------- --------- --------- -------
2,937,275 1,316,900 1,080,730 621,445
--------- --------- --------- -------
Earnings from operations 889,802 434,688 286,866 197,591
Other income (expense)
Other income 68,161 62,394 43,338 40,921
Other expense, primarily
interest (103,347) (64,138) (30,626) (14,596)
--------- -------- ------- --------
(35,186) (1,744) 12,712 26,325
--------- -------- ------- --------
Earnings before income
taxes 854,616 432,944 299,578 223,916
Income tax expense 364,050 96,900 130,950 68,400
------- ------- ------- -------
Net Earnings $490,566 $336,044 $168,628 $155,516
------- ------- ------- -------
Net earnings per
common share $0.10 $0.10 $0.03 $0.03
Weighted number of common
shares and common share
equivalents outstanding
during the period 5,067,490 3,402,181 5,067,490 4,821,361
--------- --------- --------- ---------
See notes to financial statements
</TABLE>
<PAGE>
ON-SITE SOURCING, INC.
CONDENSED STATEMENTS OF STOCKHOLDERS EQUITY
(Unaudited)
<TABLE>
<CAPTION>
Common
Additional Stock
Common Common Paid in Options
Shares Stock Capital Outstanding Subtotal
------ ------ ---------- ----------- --------
<S> <C> <C> <C> <C> <C>
Balance at December 31, 1996 4,794,021 $47,940 $6,351,911 $16,500 $6,416,351
Stock options issued 49,500 49,500
Net earnings
--------- ------ ---------- ----------- ---------
Balance at September 30,1997 4,794,021 $47,940 $6,351,911 $66,000 $6,465,851
--------- ------ --------- ----------- ---------
</TABLE>
<TABLE>
<CAPTION>
Subscriptions Retained
Subtotal Receivable Earnings Total
-------- ------------- -------- ---------
<S> <C> <C> <C> <C>
Balance at December 31, 1996 $6,416,351 $(50,400) $ 6,913 $6,372,864
Stock options issued 49,500 49,500
Net earnings 490,566 490,566
--------- ------------- --------- ----------
Balance at September 30, 1997 $6,465,851 $(50,400) $497,479 $6,912,930
---------- ------------- --------- ----------
</TABLE>
<TABLE>
<CAPTION>
Additional Stock
Common Common Paid in Options
Shares Stock Capital Outstanding Subtotal
------ ------ ---------- ----------- --------
<S> <C> <C> <C> <C> <C>
Balance at December 31,1995 2,187,000 $21,870 $488,140 $ 510,010
Sale of common stock 2,600,355 26,004 5,866,361 5,892,365
Receivable Shareholder-
Payments received -
Net earnings -
--------- ------- --------- ----------- ----------
Balance at September 30,1996 4,787,355 $47,874 $6,354,501 - $6,402,375
--------- ------- --------- ----------- ----------
</TABLE>
<TABLE>
<CAPTION>
Retained
Subscriptions (Deficit)
Subtotal Receivable Earnings Total
<S> <C> <C> <C> <C>
Balance at December 31, 1995 $ 510,010 $ $238,327) $ 271,683
Sale of common stock 5,892,365 5,892,365
Receivable Shareholder (115,000) (115,000)
Payments received 64,600 64,600
Net earnings - 336,044 336,044
--------- -------- -------- ---------
Balance at September 30,1996 $6,402,375 $ (50,400) $ 97,717 $6,449,692
See notes to financial statements
</TABLE>
<PAGE>
ON-SITE SOURCING, INC.
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Nine months ended Three months ended
September 30, September 30,
1997 1996 1997 1996
--------- ---------- --------- ---------
<S> <C> <C> <C> <C>
Cash flows from operating activities
Net earnings $ 490,566 $ 336,044 $ 168,628 $ 155,516
Adjustments to reconcile net earnings
to net cash(used in) provided by
operations
Depreciation 536,766 158,358 193,040 73,613
Gain on disposition of equipment (1,030) (1,413) (248) (1,413)
Compensation expense - stock options 49,500 - 16,500 -
Changes in assets and liabilities
(Increase) decrease in accounts
receivable, net (1,380,142)(1,326,866) 801,445 727,527)
(Increase) decrease in prepaid
supplies (188,849) (158,838) 106,991 (91,834)
(Increase) decrease in prepaid
expenses (46,265) - (15,434) -
(Increase) decrease in other assets (6,285) 24,549 (36,483) 50,116
Increase (decrease) in accounts
payable 202,954 57,134 (436,596) (81,475)
Increase (decrease) in accrued
liabilities-trade 877,661 119,821 830,290 21,374)
Increase (decrease) in deferred rent 1,865 15,146 (1) 3,184
Increase in deferred taxes 250,428 93,400 17,328 64,900
------- ------ ------ ------
Total Adjustments 296,603 (1,018,709) 1,476,832 (731,810)
------- ----------- --------- ---------
Net cash provided by (used in)
operations 787,169 (682,665) 1,645,460 (576,294)
------- --------- --------- ---------
Cash flows from investing activities
Capital expenditures (634,780)(1,370,556) (25,310) (842,715)
-------- ---------- -------- ---------
Net cash used in investing activities (634,780)(1,370,556) (25,310) (842,715)
--------- ---------- -------- ---------
Cash flows from financing activities
Proceeds from sale of common stock
and exercise of warrants - 5,841,965 - 5,441,663
Proceeds of long-term debt agreements 1,150,455 751,870 50,455 500,511
Net payments on short term debt
agreement - (283,847) - (533,847)
Payments under long-term debt
agreements (1,044,593) (250,000) (531,327) (207,675)
Net borrowings(payments)
under line of credit - (260,000) - (390,000)
Deferred offering costs - - - 341,084
--------- -------- ------- --------
Net cash provided by (used in)
financing 105,862 5,799,988 (480,872) 5,151,736
------- --------- ------- ---------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 258,251 3,746,767 1,139,278 3,732,727
Cash and cash equivalents, beginning 1,894,722 38,116 1,013,695 52,156
--------- --------- --------- ---------
Cash and cash equivalents, ending $2,152,973 $3,784,883 $2,152,973 $3,784,883
--------- --------- --------- ---------
See notes to financial statements
</TABLE>
<PAGE>
On-Site Sourcing, Inc.
Condensed Notes to Financial Statements
(unaudited)
September 30, 1997
NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying unaudited condensed financial statements have been prepared
pursuant to the rules and regulations of the Securities and Exchange
Commission. Certain information and note disclosures normally included in the
annual financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to those rules
and regulations, although the Company believes that the disclosures made are
adequate to make the information presented not misleading.
In the opinion of management, the accompanying condensed financial statements
reflect all necessary adjustments and reclassifications that are necessary for
fair presentation for the periods presented. It is suggested that these
condensed financial statements be read in conjunction with the financial
statements and the notes filed in the Companys Annual Report on Form 10K-SB.
The results of operations for the nine and three month periods ended September
30, 1997 are not necessarily indicative of the results to be expected for the
full year.
Revenue Recognition
Revenue from facilities management is recognized based on monthly fixed fees
and, in certain cases, variable per copy fees, as contained in facilities
management agreements. Revenue from reprographic and imaging services is
recognized on a per copy or image basis upon completion of the services.
Revenue from the sale of refurbished copiers is recognized when the copiers
are shipped and transfer of title occurs.
Property and Equipment
Property and equipment consists of copy center equipment, office furniture and
fixtures, and delivery equipment. Depreciation is provided for in sufficient
amounts to relate the cost of depreciable assets to operations over their
estimated service lives, ranging from two to ten years. The straight line
method is followed for financial reporting purposes. Accelerated methods are
used for tax purposes.
Software development
The Company capitalizes certain computer software costs, which are amortized
utilizing the straight-line method over the estimated economic lives of the
projects not to exceed one year. All other software development costs are
expensed as incurred.
<PAGE>
On-Site Sourcing, Inc.
Condensed Notes to Financial Statements Continued
(unaudited)
September 30, 1997
Income Taxes
The provision for income taxes presented in the statements of earnings is
based upon the estimated effective tax rate for the year, and is largely
determined by managements estimate as of the interim date of projected
taxable income for the entire fiscal year.
Earnings per Common Share
The Companys common stock was split 100-for-one and 18-for-one in March 1995
and February 1996, respectively. All earnings per share amounts in the
financial statements have been restated to give effect to the stock splits.
Earnings per common share is based on the weighted average number of common
shares and, if dilutive, common equivalent shares outstanding during each
year. Such average shares include the weighted average number of common
shares outstanding (5,049,730 in 1997 and 3,402,181 in 1996) plus the shares
issuable upon exercise of stock options and warrants after the assumed
repurchase of common shares with the related proceeds (122,787 in 1997 and
99,584 in 1996). Options and warrants granted, as well as certain shares
issued during the one-year period prior to the initial public offering, are
treated as outstanding in calculating earnings per share for both periods
presented.
NOTE B CREDIT FACILITIES
During 1997, the Company entered into an agreement for a working capital line
of credit with a financial institution for $2,500,000. The line of credit
bears interest at the financial institutions prime rate or the 30 day LIBOR
rate plus 2.25%, payable monthly. Any remaining principal balance and accrued
interest is due at the maturity date of April 30, 1998. The line of credit is
secured by certain assets of the Company, including accounts receivable and
certain fixed assets. As of September 30, 1997 there were no advances made
under the line of credit.
During 1997, the Company entered into a term note with a financial institution
to provide $1,100,000 to refinance certain capitalized lease obligations. The
note is payable in 48 monthly installments, bears interest at the rate of
9.02%, and matures on April 30, 2001. The note is collateralized by specific
equipment and is subject to certain financial covenants. The balance of the
term note at September 30, 1997 was $962,500.
At various times in 1996 the Company had term notes with a commercial bank in
the aggregate principal of $323,500. The notes were paid in full and retired
in August 1996.
At September 30, 1996, the Company had available a $450,000 working capital
line of credit at the banks prime rate plus 1%. The line of credit matured
on April 1, 1997.
During 1997, the Company financed certain equipment purchases of approximately
$50,500 with terms of 48 months and interest rates of 9%. The balance of these
notes at September 30, 1997 was $49,590.
The Company has financed certain equipment purchases under capitalized leases,
with terms of sixty months.
Transactions with an Officer/Shareholder
During the nine months ended September 30, 1997 and 1996, the Company recorded
the following transaction with an officer/shareholder:
During the nine months ended September 30, 1997 and 1996, the Company
incurred approximately $52,000 and $203,300, respectively, for legal
services rendered by the officer/shareholder. During the nine months ended
September 30, 1997 and 1996, the Company recorded revenue of approximately
$18,400 and $10,000, respectively, for reprographic services. Included in
accounts receivable as of September 30, 1997, is approximately $600 due
from the officer/shareholder.
Transactions with Shareholders
In March 1996, the Company entered into a two-year consulting agreement
with its underwriters/shareholder for financial and marketing services
totaling $60,000 which was paid from the proceeds of the initial public
offering.
<PAGE>
On-Site Sourcing, Inc.
Condensed Notes to Financial Statements Continued
(unaudited)
September 30, 1997
Subscription receivable -- Shareholder
The Company has a note receivable from an officer/director for $89,900 in
connection with the exercise of stock options. The note bears interest at 6%
per year with the remaining principal and interest due April 1, 1998. The
balance of the note at September 30, 1997 was $50,400.
Note receivable Officer
During 1996, the Company entered into a note agreement with an
officer/shareholder in the amount of $25,000. The loan bears interest at the
prime rate of interest and is due in September 1998.
NOTE D COMMITMENTS
The Company has annual rental and lease commitments with a term of one year or
more for its offices and production facilities that expire at various times
through 2006. The minimum annual rent is approximately $800,000.
NOTE E INCENTIVE STOCK OPTION PLANS
In 1997, 1996 and in 1995, the Company adopted incentive stock option plans,
under which pools of 500,000, 200,000 and 510,000, shares respectively have
been reserved. The plans are administered and terms of option grants are
established by the Board of Directors. Under the terms of the plans, options
may be granted to the Companys employees and directors to purchase shares of
common stock. Options become exercisable ratably over a vesting period as
determined by the Board of Directors, and expire over terms not exceeding ten
years from the date of grant, three months after termination of employment, or
one year after the death or permanent disability of the employee. The Board
of Directors determines the option price (not less than fair market value) at
the date of grant.
Pursuant to an employment agreement, the Company had outstanding options to
sell 162,000 shares of common stock to an officer/director of the Company at
an exercise price of $.56 per share. The options, which were fully vested
during 1994, were exercised on March 29, 1996 for $90,000. In connection with
the exercise of the options, the Company loaned $89,900 to the
officer/director. The balance of the note on September 30, 1997 was $50,400.
<PAGE>
On-Site Sourcing, Inc.
Condensed Notes to Financial Statements Continued
(unaudited)
September 30, 1997
At September 30, 1997, the Company had outstanding options to sell 126,000
shares of common stock to an officer/director at an exercise price of $1.11
per share. As of June 30, 1997, the options are fully vested. The options
expire in December 2000.
The Company has outstanding employee stock options for 832,755 shares of
common stock at exercise prices ranging from $1.11 to $3.25 per share. As of
September 30, 1997, 310,503 of the shares are vested with the remainder
scheduled to vest through December 2002. The options expire at various times
through December 2002. The Company granted a total of 60,000 options to its
outside directors which vest quarterly over one year. The fair value of
options granted to outside directors are charged to expense as they vest.
Managements Discussion and Analysis of Financial Conditions and Results of
Operations
On-Site Sourcing, Inc. (On-Site or the Company) provides reprographic,
document management, imaging and facilities management services to law firms,
corporations, non-profit organizations, accounting firms, financial institutions
and other organizations throughout the East Coast of the United States. In
order to meet the highly specialized requirements of each client, On-Site offers
a variety of customized reprographic and facilities management services. The
Company provides reprographic and imaging services 24 hours-per-day, seven days-
per-week including copying, binding, labeling, collating and indexing in support
of complex document-intensive litigation as well as higher volume production of
manuals, brochures and other materials for corporations and non-profit
organizations. On-Site also provides on-premises management of customers
support services including mailroom operations, facsimile transmission, records
and supply room management and copying services.
Nine months 1997 vs. 1996
Revenue for the nine months ended September 30, 1997 increased 118% or
$7,526,281 to $13,894,768 as compared to $6,368,487, recorded for the nine
months ended September 30, 1996. The principal reason for the increase is
increased volume of work orders fulfilled through increased sales volume in the
Arlington, VA, Philadelphia, PA, Atlanta, GA, and New York City facilities.
<PAGE>
For the nine months ended September 30, 1997, cost of sales increased $5,450,792
or 118% over the same period in 1996. Operating margins increased 118% to
$3,827,077, a $2,075,489 increase over the same period last year, due to the
increase in revenue. As a percentage of sales, operating margins were 28% for
the nine months ended September 30, 1997 and 1996, respectively.
Selling expense increased by $967,814 to $1,630,957 over the same period last
year. As a percentage of sales, this represents an increase from 10% for the
nine months ended September 30, 1996 to 12% in the same period in 1997,
primarily due to the addition of personnel, higher commissions associated with
increased revenue, and expansion into new markets.
Administrative expense for the three months ended June 30, 1997 increased
$652,561 to $1,306,318 over the same period last year due primarily to
professional fees, increases in administrative staffing and costs associated
with the expansion into new markets. As a percent of sales, administrative
expense was 9% for the nine month period in 1997 as compared to 10% for the same
period last year.
Earnings from Operations
For the nine months ended September 30, 1997, earnings from operations increased
105% or $455,114 from $434,688 to $889,802. The increase is due to increased
revenue, growth in existing markets, and continued expansion into new markets.
Other income and expenses
Other income increased $33,442 compared to the first nine months of 1996.
Other expense, primarily interest increased $39,209 to $103,347 for the nine
month period ended September 30, 1997 due to financing major equipment
purchases.
Net earnings
For the nine months ended September 30, 1997 the Company generated net earnings
of $490,566 as compared to $336,044 for the same period last year. Earnings per
share for the nine months ended September 30, 1997 and 1996 were $.10 on
5,067,490 share versus 3,402,181 shares outstanding, respectively. The Company
has provided for income taxes of $364,050 versus $96,900 for the nine months
ended September 30, 1997 and 1996, respectively.
Liquidity and Capital Resources at September 30, 1997 and Subsequent Activity
The Company has funded its expansion and growth by utilizing the proceeds of its
initial public offering and long term financing, where appropriate, for
significant capital outlays. The Company anticipates that the net proceeds from
the initial public offering, proceeds from the overallotment options, cash flow
from operations and credit facilities will be sufficient to meet the Companys
expected cash requirements for the next twelve months. There can be no
assurances that unforeseen events may require more working capital than the
Company has at its disposal.
The Company has a secured a $2,500,000 line of credit with a financial
institution. The line of credit bears interest at the financial institutions
prime rate or the 30 day LIBOR rate plus 2.25%, payable monthly. The line of
credit will be utilized to finance accounts receivable and other working capital
needs. As of September 30, 1997 there were no advances under the line. The
Company also has a $1,100,000 term note to refinance certain capital leases at
more favorable interest rates. The note is payable in 48 monthly installments,
bears interest at the rate of 9.02%, and matures on April 30, 2001. The balance
on the note at June 30, 1997 was $962,500.
During the nine months ended September 30, 1997 and 1996, the Companys
principal uses of cash were to fund fixed asset purchases and pay off long-term
debt.
Three Months 1997 vs. 1996
The principal reasons for the increase in revenue from operations and net
earnings for the three months ended September 30, 1997 versus 1996 are outlined
in the discussion of the six month results. There were no material items
adversely impacting the Company.
Revenue for the three months ended September 30, 1997 nearly doubled, increasing
96% to $5,168,454 as compared to $2,641,926 for the three month period ended
September 30, 1996. Cost of sales and the related operating margin were 26% as
compared to 31% for 1996, based in part on increased staffing to support future
growth.
Earnings from operations were $286,866 as compared to $197,591 as a result of
increased revenue resulting from continued expansion into new and existing
markets.
The Company earned $17,363 verses $40,920 from interest on overnight investments
during the three months ended September 30, 1997compared to the same period in
1996. The Company paid $30,625 in interest as compared to $14,220 over the same
period last year.
Net earnings for the three month period ended September 30, 1997 increased 8% to
$168,628 from $155,516 for the same period last year. Earnings per share for
the three month period ended September 30, 1997 and September were $.03 on
5,409,730 shares outstanding compared to 4,821,361shares outstanding for the
three month period ended June 30, 1996.
<PAGE>
Part II. Other Information
Item 701(f). Pursuant to Rule 463 of the Securities Act of 1933 the Company
has previously filed Form SR on October 19, 1996 and April 17, 1997. Pursuant
to Reg. 228.701(f) the company provides the following information which updates
previous From SR filings.
(Form SR, Page 6 Item 11)
<TABLE>
Direct or indirect Direct or indirect
Payments to Payments to
Related parties Others
<S> <C> <C>
Construction of plant,
building and facilities - $176,838
Purchase and installation
of machinery and equipment - 1,384,999
Repayment of indebtedness - 1,606,828
Working Capital - 688,000
Imaging and Scanning
Technology - 512,915
Expansion into New York - 1,062,333
Total - $5,431,913
</TABLE>
<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 hereunto duly authorized.
On-Site Sourcing, Inc.
Date: November 12, 1997
By: /s/ Christopher J. Weiler
Christopher J. Weiler
President and
Chief Executive Officer
By: /s/Joseph Sciacca
Joseph Sciacca
Vice President of Finance and
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 2152973
<SECURITIES> 0
<RECEIVABLES> 4077390
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 6740214
<PP&E> 3672171
<DEPRECIATION> 0
<TOTAL-ASSETS> 10516881
<CURRENT-LIABILITIES> 2558131
<BONDS> 0
0
0
<COMMON> 47940
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 10516881
<SALES> 13894768
<TOTAL-REVENUES> 13894768
<CGS> 10067691
<TOTAL-COSTS> 13004966
<OTHER-EXPENSES> (68161)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 103347
<INCOME-PRETAX> 854616
<INCOME-TAX> 364050
<INCOME-CONTINUING> 490566
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 490566
<EPS-PRIMARY> .10
<EPS-DILUTED> .10
</TABLE>
