================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Quarterly Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
for the quarterly period ended March 31, 1997
Commission File Number 0-28840
INFORMATION MANAGEMENT RESOURCES, INC.
(Exact name of Registrant as specified in its charter)
Florida 59-2911475
(State or Other Jurisdiction of (I.R.S. Employer Identification No.)
Incorporation or Organization)
26750 U.S. Highway 19 North, Suite 500, Clearwater, Florida 34621
(Address of principal executive offices and zip code)
813-797-7080
(Registrant's telephone number, including area code)
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports, and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
------ ------
As of May 12, 1997, there were 9,753,732 outstanding shares of the
Registrant's Common Stock, par value $.10 per share.
<PAGE>
INFORMATION MANAGEMENT RESOURCES, INC.
Table of Contents
-----------------
Part I - Financial information
------------------------------
Page
----
Item 1. Consolidated Balance Sheets
as of March 31, 1997 and December 31, 1996......... 3
Consolidated Statements of Income
for the Three Month Periods Ended
March 31, 1997 and 1996............................. 4
Consolidated Statements of Cash Flows
for the Three Month Periods Ended
March 31, 1997 and 1996............................. 5
Notes to Consolidated Financial Statements.......... 6
Item 2. Management's Discussion and Analysis of Results of
Operations and Financial Condition.................. 8
Part II - Other Information
---------------------------
Item 1. Legal Proceedings.................................. 11
Item 5. Other Information.................................. 11
Item 6. Exhibits and Reports on Form 8-K................... 11
2
<PAGE>
INFORMATION MANAGEMENT RESOURCES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
------------ ------------
(Unaudited)
ASSETS
<S> <C> <C>
Current assets:
Cash and cash equivalents .............................. $ 12,816,503 $ 24,081,743
Marketable securities .................................. 11,750,043 5,643,535
Accounts receivable .................................... 8,216,282 5,669,626
Unbilled work in process ............................... 3,199,256 1,073,965
Accounts receivable, affiliate ......................... -- 646,220
Notes receivable, affiliate ............................ -- 533,750
Other current assets ................................... 1,438,894 890,341
------------ ------------
Total current assets ............................. 37,420,978 38,539,180
Property and equipment, net of accumulated depreciation ... 6,962,269 3,702,918
Capitalized software costs, net of accumulated amortization 744,405 719,978
Note receivable, affiliate ................................ -- 158,750
Deposits and other assets ................................. 513,938 437,716
Goodwill, net of accumulated amortization ................. 10,347,648 5,394,569
------------ ------------
Total assets ..................................... $ 55,989,238 $ 48,953,111
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Revolving credit loans ................................. $ 1,071,319 $ --
Accounts payable ....................................... 1,653,895 1,364,043
Accrued expenses ....................................... 4,622,871 2,878,049
Income tax payable ..................................... 935,192 476,750
Deferred income taxes .................................. 250,000 257,832
Current portion of long-term debt ...................... 232,680 --
Current maturities of capital lease obligations ........ 91,507 55,444
Current portion of notes payable-shareholders .......... -- 813,754
Deferred revenue ....................................... 2,624,980 1,964,576
------------ ------------
Total current liabilities ........................ 11,482,444 7,810,448
Long-term debt ............................................ 698,039 --
Deferred income taxes ..................................... 384,423 634,396
Other liabilities ......................................... 88,808 84,879
------------ ------------
Total liabilities ................................ 12,653,714 8,529,723
------------ ------------
Minority interest ......................................... 73,638 67,107
------------ ------------
Shareholders' equity:
Preferred stock ........................................ -- --
Common stock ........................................... 975,373 964,909
Additional paid-in capital ............................. 40,311,694 38,841,667
Retained earnings ...................................... 2,100,775 669,034
Cumulative foreign currency translation adjustment ..... (125,956) (119,329)
------------ ------------
Total shareholders' equity ....................... 43,261,886 40,356,281
------------ ------------
Total liabilities and shareholders' equity ....... $ 55,989,238 $ 48,953,111
============ ============
The accompanying notes are an integral part of these consolidated financial statements.
</TABLE>
3
<PAGE>
INFORMATION MANAGEMENT RESOURCES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended
March 31
---------------------------
1997 1996
------------ ------------
Revenues ....................................... $ 14,347,229 $ 6,089,685
Cost of revenues ............................... 8,041,965 3,489,373
------------ ------------
Gross profit .......................... 6,305,264 2,600,312
Selling, general and administrative expenses ... 3,920,701 1,576,007
Goodwill amortization .......................... 271,401 14,688
------------ ------------
4,192,102 1,590,695
------------ ------------
Income from operations ................ 2,113,162 1,009,617
Other (expense) income:
Interest expense ...................... (66,872) (63,297)
Interest income and other ............. 244,316 1,163
Loss in equity investment ............. -- (16,014)
------------ ------------
Total other (expense) income .......... 177,444 (78,148)
------------ ------------
Income before provision for income taxes and
minority interest ..................... 2,290,606 931,469
Provision for income taxes ..................... 852,167 75,386
------------ ------------
Income before minority interest ....... 1,438,439 856,083
Minority interest in net income ................ (6,698) (153,731)
------------ ------------
Net income ............................ $ 1,431,741 $ 702,352
============ ============
Pro forma income data (unaudited):
Historical net income .......................... $ 1,431,741 $ 702,352
Pro forma adjustment to income tax expense ..... -- 279,525
------------ ------------
Pro forma net income ........................... $ 1,431,741 $ 422,827
============ ============
Pro forma net income per share ................. $ 0.10 $ 0.04
============ ============
Weighted average common and
common stock equivalent shares
outstanding .......................... 14,629,312 11,175,082
============ ============
The accompanying notes are an integral part
of these consolidated financial statements.
4
<PAGE>
INFORMATION MANAGEMENT RESOURCES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended March 31
----------------------------
1997 1996
------------ ------------
<S> <C> <C>
Cash flows from operating activities:
Net income ......................................................... $ 1,431,741 $ 702,264
Adjustment to reconcile net income to cash provided by (used in)
operating activities:
Depreciation and amortization ................................... 610,956 170,121
Loss in equity investment ....................................... -- 16,014
Minority interest in net income ................................. 6,698 153,731
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable and unbilled work-in-process ............. (1,324,440) (226,323)
Accounts receivable-affiliate ................................ -- (2,823)
Other current assets ......................................... 177,409 37,483
Deposits and other assets .................................... (76,222) (107,325)
Accounts payable ............................................. (477,152) 22,189
Accrued expenses ............................................. (956,067) (491,152)
Income tax payable ........................................... 388,813 --
Deferred income taxes ........................................ (257,805) 14,690
Deferred revenue ............................................. 281,581 200,459
Other liabilities ............................................ 12,331 (1,905)
------------ ------------
Total adjustments ............................................ (1,613,898) (214,841)
------------ ------------
Net cash provided by (used in) operating activities .......... (182,157) 487,423
------------ ------------
Cash flows from investing activities:
Investment in marketable securities ................................ (6,106,508) --
Additions to capitalized software costs ............................ (150,000) (94,465)
Additions to property and equipment ................................ (2,724,752) (89,024)
Increase in equity investment and loans to affiliate ............... -- (392,500)
Acquisition of subsidiaries, net of cash received .................. (2,703,870) --
------------ ------------
Net cash used in investing activities ........................ (11,685,130) (575,989)
------------ ------------
Cash flows from financing activities:
Net borrowings from revolving credit line .......................... 136,248 397,989
Proceeds from long-term debt ....................................... 930,719 --
Payments on long-term debt ......................................... -- (243,750)
Payments on notes payable-shareholder .............................. (822,156) (240,042)
Payments on capital lease obligations .............................. (28,350) (48,658)
Proceeds from issuance of common stock ............................. 391,915 --
Purchase of treasury stock at cost ................................. -- (50,000)
------------ ------------
Net cash provided by (used in) financing activities .......... 608,376 (184,461)
------------ ------------
Effect of exchange rate changes ....................................... (6,329) 31,747
------------ ------------
Net decrease in cash and cash equivalents ............................. (11,265,240) (241,280)
Cash and cash equivalents at beginning of year ........................ 24,081,743 1,620,968
------------ ------------
Cash and cash equivalents at end of period ............................ $ 12,816,503 $ 1,379,688
============ ============
The accompanying notes are an integral part of these consolidated financial statements.
</TABLE>
5
<PAGE>
INFORMATION MANAGEMENT RESOURCES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 1997
(Unaudited)
1. BASIS OF PRESENTATION
In the opinion of management, the accompanying consolidated financial
statements have been prepared in conformity with generally accepted accounting
principles and include all adjustments, consisting only of all normal recurring
adjustments, necessary for a fair presentation. The results of operations for
the three month period ended March 31, 1997 are not necessarily indicative of
the results to be expected for the full year. These interim condensed
consolidated financial statements should be read in conjunction with the audited
consolidated financial statements for the year ended December 31, 1996, which
are contained in the Company's Annual Report on Form 10-K as filed with the
Securities and Exchange Commission.
2. ACCOUNTING POLICIES
(a) PRINCIPLES OF CONSOLIDATION - The consolidated financial statements
include the accounts of Information Management Resources, Inc. ("IMR" or the
"Company"), its wholly owned subsidiaries and its effectively controlled foreign
subsidiary. All significant intercompany balances and transactions have been
eliminated.
(b) MARKETABLE SECURITIES - The Company currently invests in only high
quality, short-term investments which it classifies as available-for-sale. As
such there were no significant differences between amortized cost and estimated
fair value at March 31, 1997. Additionally, because investments are short-term
and are generally allowed to mature, realized gains and losses have been minimal
through March 31, 1997.
The following table presents the estimated fair value of marketable
securities by category:
March 31,
1997
--------------
Municipal debt securities................ $ 11,375,556
Certificates of deposit - foreign........ 213,534
Interest income receivable............... 160,953
-------------
$ 11,750,043
=============
The maturity of the above marketable securities at March 31, 1997,
is between one and two years.
(c) NET INCOME PER SHARE - Net income per common and common equivalent
share is computed using the weighted average number of common and dilutive
common equivalent shares outstanding during each period. Shares of stock
issuable pursuant to stock options have been included where their effect is
dilutive. Fully diluted earnings per common share are not presented as they are
not materially different from primary earnings per share. Dilutive common
equivalent shares consist of stock options (using the treasury stock method).
(d) RECLASSIFICATION - Recruiting expenses have been reclassified from
cost of revenues to selling, general and administrative expenses for the three
months ended March 31, 1996 to conform to the new classification of these
expenses for the three months ended March 31, 1997.
6
<PAGE>
INFORMATION MANAGEMENT RESOURCES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 1997
(Unaudited)
3. PRO FORMA NET INCOME
Prior to November 1996, the Company elected to be taxed as an S
Corporation under the provisions of the Internal Revenue Code whereby taxable
income is generally reported by the shareholders on their individual income tax
returns. In connection with the Company's initial public offering, the S
Corporation election was terminated on November 11, 1996 and subsequently the
Company became subject to U.S. federal and state income taxes as a C
Corporation.
To properly reflect the Company's results of operations, the provision for
income taxes has been adjusted, on a pro forma basis, as if the Company had been
subject to federal and state income taxes at the marginal rates for the three
months ended March 31, 1996 as a C Corporation.
4. ACQUISITIONS
LINK GROUP HOLDINGS LIMITED AND INFORMATION MANAGEMENT RESOURCES (U.K.)
LIMITED ("IMR-U.K. Acquisition") - On February 10, 1997 (effective January 8,
1997), the Company acquired 100% of the outstanding stock of Link Group Holdings
Limited ("Link"), a United Kingdom limited liability company. Link provides
transitional software outsourcing solutions to the information technology
departments of large businesses located in the U.K. In exchange for Link's
common stock, Link's shareholders received $2.1 million in cash and 71,708
shares of the Company's common stock. In addition, $1.6 million in cash is
payable to Link's former shareholders one year from closing (included in accrued
expenses). The Link acquisition is accounted for as a purchase pursuant to the
provisions of APB Opinion No. 16. The purchase price was allocated to the assets
acquired and liabilities assumed based on their estimated fair values. The
excess of the purchase price over the net assets acquired (goodwill) is
amortized over a period not to exceed ten years.
Coincident with the above acquisition, the Company also acquired 10.5% of
Information Management Resources (U.K.) Limited (IMR-U.K.) from the Company's
majority shareholder and his spouse for $520,000 in cash. The purchase price was
determined through negotiations between the Company and the shareholder and his
spouse. The excess of the $520,000 purchase price over the net assets acquired
was charged as a reduction in equity.
Prior to the above acquisitions, the Company owned 39.5% of IMR-U.K. and
Link owned 50% of IMR- U.K. After the IMR-U.K. acquisition, the Company
effectively owned 100% of both Link and IMR-U.K.
MOVIETONE, LTD. - In March 1997, the Company acquired 100% of the
outstanding stock of Movietone, Ltd. (an Indian limited liability company) for
approximately $1.7 million in cash. Movietone, Ltd. has no significant ongoing
activities and its only significant asset is a building located in the Santacruz
Electronics Export Processing Zone in Bombay, India. The acquisition is recorded
as a purchase pursuant to the provisions of APB Opinion No. 16. The entire
purchase price was allocated to the building as it approximates its fair value.
7
<PAGE>
INFORMATION MANAGEMENT RESOURCES, INC. AND SUBSIDIARIES
MANAGEMENT DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Except for historical information contained herein, some matters discussed
in this report constitute forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The Company notes that a variety of
risk factors could cause the Company's actual results and experience to differ
materially from the anticipated results or other expectations expressed in the
Company's forward-looking statements. Reference is made in particular to the
discussion set forth below in this report and set forth in the Company's Annual
Report on Form 10-K as filed with the Securities and Exchange Commission.
RESULTS OF OPERATIONS
FOR THE THREE MONTH PERIODS ENDED MARCH 31, 1997 AND 1996
The following information should be read in conjunction with the
consolidated financial statements and the notes thereto and in conjunction with
Management's Discussion and Analysis of Financial Condition and Results of
Operations in the Company's Annual Report on Form 10-K as filed with the
Securities and Exchange Commission.
For the three months ended March 31, 1997, revenues increased to $14.3
million representing a 135.6% increase over the prior year's comparable period.
The IMR-UK acquisition (see Note 4 of the Consolidated Financial Statements)
accounted for $3.9 million of the revenue increase. The remaining $4.4 million
of increased revenues were primarily attributable to the continued expansion of
the Year 2000 service offering in the U.S. operations. The information
technology ("IT") industry is currently focused on resolving the Year 2000
problem, as many existing computer systems run software programs permitting only
two-digit entries for years and therefore cannot properly process dates in the
next century. The Gartner Group, a recognized industry source, has estimated
that the world-wide costs (including in-house costs) to resolve the Year 2000
problem could range from $300 billion to $600 billion. First quarter revenues
from the Company's Year 2000 services increased to $6.2 million (including
IMR-U.K. revenues), compared to less than $0.5 million for the first quarter of
1996.
The Company's transitional outsourcing services (software development,
application maintenance and migration, and re-engineering services), revenues
were $5.7 million (including IMR-U.K. revenues) for the first quarter of 1997
compared to $4.1 million for the first quarter of 1996.
Professional services revenues for the first quarter of 1997 were $2.3
million (including IMR-U.K. revenues) compared to $1.0 million for the first
quarter of 1996.
Gross profit increased to $6.3 million in the first quarter of 1997
compared to $2.6 million in the prior comparable period. As a percentage of
revenue, gross profit increased to 44.0% in the first quarter of 1997 compared
to 42.7% in 1996. The Company's gross profit percentage increased for the U.S.
and India operations, however, the U.K. operations partially offset this
increase as the newly acquired company had a substantial portion of lower margin
professional service business.
8
<PAGE>
INFORMATION MANAGEMENT RESOURCES, INC. AND SUBSIDIARIES
MANAGEMENT DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(CONTINUED)
FOR THE THREE MONTH PERIODS ENDED MARCH 31, 1997 AND 1996 (CONTINUED)
For the three months ended March 31, 1997, selling, general and
administrative (SG&A) expenses increased to $3.9 million, compared to $1.6
million in 1996. As a percentage of revenues, SG&A expenses for the three months
ended March 31, 1997 increased to 27.3% from 25.9% for the same period in 1996.
The increase is attributable to the inclusion of IMR-U.K. SG&A expenses,
regionalization of operations, additional costs associated with being a public
company, and increases in costs related to expanding the Company's
administrative support staff. The Company is currently expanding SG&A expense in
anticipation of increasing business volume in late 1997 and 1998.
Goodwill amortization increased to approximately $271,000 for the three
months ended March 31, 1997 from approximately $15,000 for the three months
ended March 31, 1996. This increase reflects the acquisition of 64.0% of
IMR-India in the second half of 1996 and the IMR-U.K. acquisition effective
January 8, 1997.
As a percentage of revenues, income from operations for the three months
ended March 31, 1997 decreased to 14.7% from 16.6% in the comparable period in
1996. As a percentage of revenues, 1.7% of this decrease was attributable to the
expanded goodwill amortization described above. Operating income for the first
quarter of 1997 was $2.1 million compared to $1.0 million in the prior
comparable period, representing a 110.0% increase.
The Company realized net other income of approximately $177,000 in the
first quarter of 1997 compared to net other expense of approximately $78,000 in
the prior comparable period. Other expense in the first quarter of 1996 included
a loss related to the Company's equity investment in IMR-U.K. of approximately
$16,000 and interest expense of approximately $63,000. During the first quarter
of 1997, the Company recognized approximately $244,000 in investment income from
the investment of the remaining net proceeds from its initial public offering
and incurred approximately $67,000 of interest expense related primarily to
credit facilities in India and the U.K. and shareholder notes payable.
The provision for income taxes increased to approximately $852,000 at
March 31, 1997 from approximately $75,000 at March 31, 1996. This increase is
due to increased earnings and the Company's termination of its Subchapter S
Corporation tax status in conjunction with its initial public offering in
November 1996. Prior to this termination the provision for income taxes only
reflected taxes related to IMR-India.
The pro forma effect as if the Company was a C corporation during the
first quarter of 1996 is provided. Pro forma total income tax for the first
quarter of 1997 was approximately $852,000 compared to approximately $355,000 in
the first quarter of 1996. This represents an effective tax rate of 37.2% and
38.1% for the periods ended March 31, 1997 and March 31, 1996, respectively. The
decrease in the effective tax rate reflects a greater portion of profits
generated by the operations in India which has favorable tax rates.
9
<PAGE>
INFORMATION MANAGEMENT RESOURCES, INC. AND SUBSIDIARIES
MANAGEMENT DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(CONTINUED)
FOR THE THREE MONTH PERIODS ENDED MARCH 31, 1997 AND 1996 (CONTINUED)
Minority interest in net income decreased to approximately $7,000 for the
three months ended March 31, 1997 from approximately $154,000 in the prior
comparable period. This represents that portion of net income which is allocated
to IMR-India minority shareholders. This decrease was a result of the
acquisition of 64.0% of IMR-India by IMR-U.S. during late 1996.
Net income for the first quarter of 1997 is approximately $1.4 million or
$.10 per share compared to pro forma net income of approximately $423,000 or
$.04 per share in the prior comparable period.
As of March 31, 1997, the Company had a current ratio of 3.3 to 1, highly
liquid assets (cash, cash equivalents and marketable securities) of $24.6
million and available bank lines of credit of $6.3 million. The Company
continuously reviews its future cash requirements, together with its available
bank lines of credit and internally generated funds. The Company believes it
will meet all working capital obligations and fund further development of its
business for at least the next 12 months.
10
<PAGE>
INFORMATION MANAGEMENT RESOURCES, INC. AND SUBSIDIARIES
Part II. Other Information
ITEM 1. LEGAL PROCEEDINGS
The Company is not a party to any pending material litigation.
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
1. The Registrant filed a report on Form 8-K on January 10, 1997
under Item 4 indicating a change in the certifying accountant of
Information Management Resources (India) Ltd. a majority owned
subsidiary of Information Management Resources Inc.
2. The Registrant filed a report on Form 8-K on January 27, 1997
under Item 2 containing information related to the IMR-U.K.
Acquisition.
3. The Registrant filed a report on Form 8-K on March 14, 1997
under Item 9 indicating the issuance of common stock related to
the acquisition of Link Group Holdings Limited.
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.
INFORMATION MANAGEMENT RESOURCES, INC.
Date May 13, 1997 /s/ Satish K. Sanan
------------------------------- ----------------------------------------
Satish K. Sanan
Chief Executive Officer
Date May 13, 1997 /s/ John R. Hindman
------------------------------- ----------------------------------------
John R. Hindman
Chief Financial Officer
12
<PAGE>
INFORMATION MANAGEMENT RESOURCES, INC. AND SUBSIDIARIES
EXHIBIT INDEX
Exhibit
Number Description Page
- ------ ----------- ----
11 Computation of earnings per common share for the
three month periods ended March 31, 1997 and 1996.......14
27 Financial Data Schedule.................................15
13
EXHIBIT NUMBER 11
INFORMATION MANAGEMENT RESOURCES, INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER COMMON SHARE
(Unaudited)
Three Months Ended
March 31
-------------------------
1997 1996
----------- -----------
Pro forma net income ............................... $ 1,431,741 $ 422,827
=========== ===========
Shares:
Weighted average number of common shares
outstanding ................................... 9,747,358 6,404,020
Assuming conversion of options issued and
outstanding ................................... 4,881,954 4,771,062
----------- -----------
Weighted average common and
common stock equivalent shares outstanding .... 14,629,312 11,175,082
=========== ===========
Pro forma net income per share ..................... $ 0.10 $ 0.04
=========== ===========
14
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FINANCIAL
STATEMENTS OF INFORMATION MANAGEMENT RESOURCES, INC. AND SUBSIDIARIES FOR THE
PERIOD ENDED MARCH 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 12,816,503
<SECURITIES> 11,750,043
<RECEIVABLES> 8,216,282
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 37,420,978
<PP&E> 8,939,209
<DEPRECIATION> 1,976,940
<TOTAL-ASSETS> 55,989,238
<CURRENT-LIABILITIES> 11,482,444
<BONDS> 698,039
0
0
<COMMON> 975,373
<OTHER-SE> 42,286,513
<TOTAL-LIABILITY-AND-EQUITY> 55,989,238
<SALES> 0
<TOTAL-REVENUES> 14,347,229
<CGS> 0
<TOTAL-COSTS> 8,041,965
<OTHER-EXPENSES> 4,192,102
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 66,772
<INCOME-PRETAX> 2,290,606
<INCOME-TAX> 852,167
<INCOME-CONTINUING> 1,438,439
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,431,741
<EPS-PRIMARY> .10
<EPS-DILUTED> .10
</TABLE>
