<PAGE> 1
================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
________________________
FORM 10-Q
(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, 1995
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period ____________________ to ____________________
COMMISSION FILE NUMBER 0-9278
__________________________
GEOWASTE INCORPORATED
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
___________________________
STATE OF INCORPORATION: DELAWARE I.R.S. EMPLOYER ID. NO. 36-2751684
SUITE 208, 24 CATHEDRAL PLACE
ST. AUGUSTINE, FL 32084
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
(904) 824-0201
(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 [ ]
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Common Stock, $0.10 Par Value, 18,662,605 shares outstanding as of
November 10, 1995.
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<PAGE> 2
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
----
<S> <C>
PART I: FINANCIAL INFORMATION
ITEM I: FINANCIAL STATEMENTS (Unaudited)
Consolidated Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Consolidated Statements of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Consolidated Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-6
ITEM 2: Management's Discussion and Analysis of Financial
Condition and Results of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-9
PART II: OTHER INFORMATION
ITEM 1: LEGAL PROCEEDINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
ITEM 2: CHANGES IN SECURITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
ITEM 3: DEFAULTS UPON SENIOR SECURITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
ITEM 4: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS . . . . . . . . . . . . . . . . . . . . . . . . 10
ITEM 5: OTHER INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
ITEM 6: EXHIBITS AND REPORTS ON FORM 8-K . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
</TABLE>
<PAGE> 3
GEOWASTE INCORPORATED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
September 30,
Assets 1995 December 31,
(unaudited) 1994
------------- -------------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 3,636,810 $ 1,633,398
Accounts receivable, net 984,231 1,013,228
Prepaid expenses 183,760 119,894
Deferred tax asset 83,000 525,000
----------- -----------
Total current assets 4,887,801 3,291,520
----------- -----------
Property and equipment:
Land, primarily disposal site 11,295,377 10,663,213
Building and improvements 150,793 149,372
Vehicles and equipment 3,145,380 2,551,785
----------- -----------
14,591,550 13,364,370
Less: accumulated depreciation (5,735,220) (3,914,197)
----------- -----------
Net property and equipment 8,856,330 9,450,173
----------- -----------
Other assets:
Cost in excess of net assets of
acquired businesses, net of
amortization 1,115,532 1,138,881
Funds held in escrow 612,010 588,971
Other 46,475 58,412
----------- -----------
Total other assets 1,774,017 1,786,264
----------- -----------
Total assets $15,518,148 $14,527,957
=========== ===========
<CAPTION>
September 30,
Liabilities and stockholders' equity 1995 December 31,
(unaudited) 1994
-------------- -------------
<S> <C> <C>
Current liabilities:
Current maturities of long-term obligations $ 153,317 $ 167,971
Accounts payable 160,089 849,104
Accrued payroll 69,171 80,700
Accrued fees 140,231 154,459
Acrrued taxes 84,000 90,000
Accrued other 121,861 49,772
Deferred revenue 873,242 564,212
----------- -----------
Total current liabilities 1,601,911 1,956,218
Long-term obligations, less current
maturities 5,420,106 5,539,195
Closure obligations 1,370,642 891,175
Deferred tax liability 139,000 229,000
Minority interest 61,829 63,547
----------- -----------
Total liabilities 8,593,488 8,679,135
----------- -----------
Stockholders' equity:
Preferred stock, authorized 5,000,000
shares, $.01 par value; none issued
or outstanding
Common stock, authorized 50,000,000 shares,
$.10 par value; issued and outstanding
18,662,605 shares in 1995 and 1994 1,866,260 1,866,260
Additional paid-in capital 6,191,110 6,191,110
Change in unrealized value 8,969 (8,179)
Accumulated deficit (1,141,679) (2,200,369)
----------- -----------
Total stockholders' equity 6,924,660 5,848,822
----------- -----------
Total liabilities & stockholders' equity $15,518,148 $14,527,957
=========== ===========
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
2
<PAGE> 4
GEOWASTE INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------------- -------------------------------
1995 1994 1995 1994
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net revenues $ 2,176,717 $ 1,856,867 $ 6,845,734 $ 4,846,148
Cost and expenses:
Operating 1,307,592 1,133,688 4,024,080 2,856,879
Selling, general & administrative 386,488 357,398 1,112,251 1,120,336
----------- ----------- ----------- -----------
Income from operations 482,637 365,781 1,709,403 868,933
Other income (expense):
Other income, primarily interest 30,422 14,140 114,766 40,154
Interest expense (95,280) (89,450) (279,479) (272,519)
----------- ----------- ----------- -----------
Income from operations
before income taxes 417,779 290,471 1,544,690 636,568
Income tax provision (58,043) 34,265 486,000 86,840
----------- ----------- ----------- -----------
Net income $ 475,822 $ 256,206 $ 1,058,690 $ 549,728
=========== =========== =========== ===========
Earnings per common
and common equivalent share $ 0.02 $ 0.01 $ 0.05 $ 0.03
=========== =========== =========== ===========
Weighted average common and
common equivalent shares 20,176,613 18,811,929 19,591,254 19,000,317
=========== =========== =========== ===========
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
3
<PAGE> 5
GEOWASTE INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
-----------------------------
September 30, September 30,
1995 1994
------------- -------------
<S> <C> <C>
Cash Flows from operating activities:
Net income $1,058,690 $ 549,728
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 1,884,180 1,333,523
Non cash interest expense 80,823 227,680
Non cash closure costs 479,467 334,643
Gain on sale of equipment (3,208) (2,246)
Deferred taxes 352,000 -
Changes in assets and liabilities:
Accounts receivable 28,998 (301,603)
Prepaid expenses (63,866) (109,482)
Accounts payable & accrued liabilities (82,847) 166,482
Deferred revenue 309,030 18,355
---------- ----------
Net cash provided by operating activities 4,043,267 2,217,080
---------- ----------
Cash flows from investing activities:
Additions to property and equipment (1,733,597) (1,859,130)
Proceeds from the sale of equipment 13,170 90,484
Funds held in escrow and other (744) (44,762)
---------- ----------
Net cash used in investing activities (1,721,171) (1,813,408)
---------- ----------
Cash flows from financing activities:
Payment of debt and capital lease obligations (318,684) (304,453)
---------- ----------
Net cash used in financing activities (318,684) (304,453)
---------- ----------
Increase in cash and cash equivalents 2,003,412 99,219
Cash and cash equivalents, beginning of period 1,633,398 1,209,259
---------- ----------
Cash and cash equivalents, end of period $3,636,810 $1,308,478
========== ==========
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
4
<PAGE> 6
GEOWASTE INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1) BASIS OF PRESENTATION
In the opinion of management, the unaudited consolidated financial
statements for the interim periods ended September 30, 1995 and September 30,
1994 reflect all adjustments, including normally recurring accruals, necessary
to present fairly the financial condition and results of operations of the
Company for and as of the periods and dates indicated. Certain information and
footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been condensed or
omitted in accordance with the rules of the Securities and Exchange Commission.
Operating reports for interim periods are not necessarily indicative of the
results that can be effected for a full year. These statements should be read
in conjunction with the Company's Annual Report for 1994 on Form 10-K dated
March 30, 1995.
2) SIGNIFICANT ACCOUNTING POLICIES
Earnings Per Common Share
Earnings per common and common equivalent share is computed using the
weighted average number of common and common equivalent shares (stock options,
warrants and conversion of subordinated notes) outstanding during each period.
Consolidated Statements of Cash Flows
For purposes of reporting cash flows, the Company considers all
certificates of deposit and time deposits with original maturities of three
months or less to be cash equivalents.
The Company paid approximately $152,000 and $3,000 for income taxes
and $194,000 and $39,000 for interest during the nine months ended September
30, 1995 and September 30, 1994, respectively.
<TABLE>
<CAPTION>
Nine Months Ended September 30,
Significant non-cash transactions 1995 1994
---- ----
<S> <C> <C>
o Purchase of equipment and vehicles $104,118 $140,010
financed by notes payable
o Purchased land in exchange for a - 24,000
note payable
</TABLE>
Income Taxes
During the third quarter of 1995 the Company elected to adopt Section
468 of the Internal Revenue Code which allows current deductions for future
closure costs with respect to the Company's landfill (subject to limitations).
These deductions were previously deferred for income tax purposes while being
expensed currently for financial statement purposes.
At September 30, 1995, and as a result of adopting Section 468, the
Company had approximately $109,000 of net operating loss carryforwards
available to offset future income through 2009.
5
<PAGE> 7
The current provision for income taxes at September 30, 1995 consists
of the following:
<TABLE>
<S> <C>
Current
Federal $ 66,000
State 68,000
--------
134,000
--------
Deferred
Federal 352,000
State 0
--------
352,000
--------
Income tax provision $486,000
========
</TABLE>
The difference between the actual income tax provision and the tax
provision computed by applying the statutory federal income tax rate to income
before taxes is attributable to the following:
<TABLE>
<CAPTION>
Amount Percentage
------ ----------
<S> <C> <C>
Tax computed using federal statutory rate $540,000 35
State income taxes, net of federal income
tax effect 126,000 8
Utilization of net operating loss carryforward
created due to IRC Section 468 election (157,000) (11)
Other (23,000) (1)
-------------------
$486,000 31
===================
</TABLE>
The components of deferred tax assets and liabilities, as of September
30, 1995, were as follows:
<TABLE>
<S> <C>
Current deferred tax assets:
Alternate minimum tax credit $ 77,000
Net operating loss carryforwards 38,000
Reserve for bad debts 6,000
Valuation allowance (38,000)
---------
Total current deferred tax assets $ 83,000
=========
Long term deferred tax liability:
Depreciation $(139,000)
=========
</TABLE>
The change in the valuation allowance from December 31, 1994 to
September 30, 1995 was due primarily to the utilization of net operating loss
carryforwards.
3) SUBORDINATED DEBT
On March 5, 1992, the Company completed a private placement of $3
million in Convertible Subordinated Debentures due March 31, 1997 (the
"Debentures"). The Debentures have a term of five years and bear interest at
the rate of 8.5% per annum, payable quarterly. Interest is payable in either
cash or additional Debentures at the Company's option. The Company has
utilized this feature for each quarter since the issuance of the Debentures, up
to and including the quarter ended March 31, 1995. Beginning with the second
quarter of 1995, the Company chose to pay interest of $82,500 per quarter
rather than issue additional Debentures. Total interest paid this year on the
Debentures amounts to $165,000. The Debentures are convertible into the
Company's common stock at a conversion rate of $1.40 per share. Pursuant to
the terms of the Debentures, the Company is obligated to subordinate certain
subsequent issuances of debt to the rights of the holders of the Debentures.
The Debentures subject the Company to certain covenants, certain prepayment and
conversion obligations and certain restrictions with respect to the declaration
and payment of dividends.
6
<PAGE> 8
ITEM 2 GEOWASTE INCORPORATED AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
Net sales for the quarter ended September 30, 1995 consisted of
collection revenues of $658,000, disposal revenues of $1,313,000 and transfer
revenues of $206,000. Collection revenues decreased 2% and disposal revenues
increased 11% over third quarter 1994 results. The decrease in collection
revenues is primarily attributed to the loss of a municipal contract. There
were no related transfer revenues for the third quarter of 1994. Transfer
operations commenced in the fourth quarter of 1994. Net sales for the nine
months ended September 30, 1995 consisted of collection revenues of $2,065,000,
disposal revenues of $4,161,000 and transfer revenues of $620,000. For the
nine months ended September 30, 1995 collection revenues increased 12% and
disposal revenues increased 38% over 1994 results. Higher disposal revenues
principally reflect the increased volumes at the Pecan Row Landfill and
excludes all intercompany activity.
Operating expenses related to the collection, disposal and transfer
activities for the quarter ended September 30, 1995, consisted of collection
expenses of $296,000, disposal expenses of $924,000 and transfer expenses of
$88,000. Costs and expenses for collection operations decreased 1% from the
third quarter of 1994. Disposal operating costs increased 11% over the third
quarter of 1994. The decrease in collection costs is principally related to
lower operating levels in 1995. The increase in disposal costs resulted from
the costs associated with increased disposal volumes. Operating expenses
related to the collection, disposal and transfer activities for the nine months
ended September 30, 1995, consisted of collection expenses of $909,000,
disposal expenses of $2,864,000 and transfer expenses of $250,000. Prior year
nine month figures for collection and disposal were $766,000 and $2,091,000
respectively. There are no related nine month 1994 transfer expenses.
Selling, general and administrative expenses for collection and
disposal activities in the third quarter ended September 30, 1995, were $71,000
and $73,000, respectively, as compared to $63,000 and $59,000 for the third
quarter of 1994. Transfer administration expenses for the third quarter of
1995 were $1,000 with no comparable expenses in 1994. Corporate overhead for
the most recent three months was $242,000 as compared to $235,000 in the third
quarter of 1994. Selling, general and administrative expenses (excluding
corporate overhead) for collection and disposal activities in the nine months
ended September 30, 1995 were $216,000 and $235,000, respectively, as compared
to $209,000 and $168,000 in 1994. Corporate overhead for the nine months ended
September 30, 1995 was $656,000, as compared to $743,000 in 1994.
Net income for the quarter ended September 30, 1995 was $476,000 and
for the nine months ended September 30, 1995 was $1,059,000. During the third
quarter the Company elected to adopt Section 468 of the Internal Revenue code
which allows current deductibility of closure costs (subject to limitations).
The tax provision was adjusted to reflect this election. Higher operating
levels and decreased corporate charges along with the aforementioned tax
election during this third quarter of 1995 resulted in a $220,000 and $509,000
improvement for the quarter and nine month period respectively, over comparable
1994 results.
7
<PAGE> 9
SELECTED FINANCIAL DATA OF THE REGISTRANT'S OPERATIONS
The table below sets forth certain financial data of the Company's collection,
transfer and disposal operations in Georgia and Florida. These operating
results do not include the corporate overhead expenses of the parent, which are
associated with the operation of the Company as a public entity and the pursuit
of the Company's business strategy of acquiring additional disposal and
collection operations. The Company believes that the operating information set
forth below is an accurate representation of the operating results of the
Georgia and Florida operations on a stand-alone basis.
<TABLE>
<CAPTION>
THREE MONTHS THREE MONTHS
ENDED ENDED
Revenues: SEPT 30,1995 SEPT 30, 1994
------------ -------------
<S> <C> <C>
Disposal $1,312,976 $1,184,040
Collection 658,128 672,827
Transfer 205,613 --
---------- ----------
Total 2,176,717 1,856,867
Operating Expenses (1) 559,624 500,873
---------- ----------
Gross Margin 1,617,093 1,355,994
Selling, General and Administrative (2) 136,840 115,050
---------- ----------
Operating Cash Flow $1,480,253 $1,240,944
========== ==========
</TABLE>
____________________________
1. Excludes depreciation and non-cash closure costs of $747,968 and
$632,815 for period ending September 30, 1995 and 1994, respectively.
2. Excludes amortization expense of $7,782. No corporate overhead has
been allocated, $241,866 and $235,565 for the period ending September
30, 1995 and 1994, respectively.
3. Capital expenditures were $194,059 and $849,430 for the period ending
September 30, 1995 and 1994, respectively which resulted in free cash
flow of $1,286,194 and $391,514 in the related quarters.
Liquidity and Capital Resources
The Company is in a service industry and has neither significant
inventory nor seasonal variations in receivables. At September 30, 1995, the
Company had positive working capital of $3,300,690 as compared with $1,335,302
at December 31, 1994. The increase in working capital resulted primarily from
the increased revenues and improved operating efficiencies of the Company's
operating entities.
The Company's improved operating performance is expected to be
sufficient to support corporate overhead and other expenses. Management
believes that current working capital and internally generated funds will be
sufficient to meet the Company's working capital requirements for the
foreseeable future.
Ongoing Capital Requirements and Expansion
The Company has relied on the private placement of debt and equity
securities in order to provide it with the cash required for capital
expenditures, acquisitions, and to partially fund operating activities. Set
forth below is a discussion of the Company's primary ongoing cash requirements
and
8
<PAGE> 10
the means by which it expects to meet these requirements in the future.
Operating Activities
The Company anticipates that the cash generated from operating
activities will be sufficient to provide the cash required for these
activities.
Capital Expenditures
The Company expects to make capital expenditures on an ongoing basis
for improvements to, and expansion of, its landfill and for equipment
purchases. The Company estimates that the capital expenditures required for
its existing operations will amount to $1,900,000 in 1995. The Company expects
that it will fund such estimated capital expenditures from existing cash, cash
generated from operations and equipment lease financing.
The development and permitting of new disposal facilities requires
significant capital expenditures over an extended period. Any growth of the
Company through the permitting of new disposal facilities or the lateral
expansion of its existing disposal facility would require substantial capital
expenditures.
Acquisitions
The Company's business strategy includes the acquisition of, or
combination with, solid waste management companies on financially attractive
terms. The Company competes with other solid waste disposal and collection
companies, some of which have significantly greater resources than the Company,
with respect to potential acquisitions and business combinations. Therefore,
there can be no assurance that the Company will be able to consummate
acquisitions or combinations on terms acceptable to the Company.
9
<PAGE> 11
PART II: OTHER INFORMATION
Item 1. Legal Proceedings:
Not applicable.
Item 2. Changes in Securities:
Not applicable.
Item 3. Defaults upon Senior Securities:
Not applicable.
Item 4. Submission of matters to a Vote of Security Holders:
Not applicable.
Item 5. Other Information:
Not applicable.
Item 6. Exhibits and Reports on Form 8-K:
(a) Exhibits:
Computation of Net Earnings and Net Loss Per
Share:
Three month period ended September 30, 1995
- Exhibit 11.1
Nine month period ended September 30, 1995
- Exhibit 11.2
Financial Data Schedule (for SEC use only) - Exhibit
27
(b) Reports on Form 8-K:
None
10
<PAGE> 12
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.
GEOWASTE INCORPORATED
---------------------
(Registrant)
/s/ Raymond F. Chase
----------------------------------------
Raymond F. Chase
Vice President and Chief Financial Officer
November 13, 1995
11
<PAGE> 13
Exhibit Index
<TABLE>
<CAPTION>
Sequentially
Numbered
Exhibit Pages
- ------- -------------
<S> <C> <C>
11.1 Computation of Net Earnings Per Share
for the three month period ended September 30, 1995. . . . . . . . . . . . . . . . . . . . . . . . . . 13
11.2 Computation of Net Earnings Per Share
for the nine month period ended September 30, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . 14
27 Financial Data Schedule (for SEC use only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
</TABLE>
12
<PAGE> 1
EXHIBIT 11.1
GEOWASTE INCORPORATED AND SUBSIDIARIES
COMPUTATION OF NET EARNINGS PER SHARE
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1995
<TABLE>
<CAPTION>
Fully
Primary Diluted
------- -------
<S> <C> <C>
Weighted Average Common Shares
outstanding . . . . . . . . . . . . . . . . . . . . . . . 18,662,605 18,662,605
Convertible debt . . . . . . . . . . . . . . . . . . . . . -- 2,774,475
Stock options and warrants outstanding . . . . . . . . . . 1,514,008 2,028,952
----------- -----------
Weighted average shares of common shares outstanding . . .
20,176,613 23,466,032
=========== ===========
Net income . . . . . . . . . . . . . . . . . . . . . . . .
$ 475,822 $ 558,361
=========== ===========
Earnings per share . . . . . . . . . . . . . . . . . . . .
$ .02 $ .02
=========== ===========
</TABLE>
13
<PAGE> 1
EXHIBIT 11.2
GEOWASTE INCORPORATED AND SUBSIDIARIES
COMPUTATION OF NET EARNINGS PER SHARE
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995
<TABLE>
<CAPTION>
Fully
Primary Diluted
------- -------
<S> <C> <C>
Weighted Average Common Shares
outstanding . . . . . . . . . . . . . . . . . . . . . . . 18,662,605 18,662,605
Convertible debt . . . . . . . . . . . . . . . . . . . . . -- 2,774,475
Stock options and warrants
outstanding . . . . . . . . . . . . . . . . . . . . . . . . 928,649 2,322,338
----------- -----------
Weighted average shares of common shares outstanding . . .
19,591,254 23,759,418
=========== ===========
Net income . . . . . . . . . . . . . . . . . . . . . . . .
$ 1,058,690 $ 1,304,591
=========== ===========
Earnings per share . . . . . . . . . . . . . . . . . . . .
$ .05 $ .05
=========== ===========
</TABLE>
14
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 3,636,810
<SECURITIES> 0
<RECEIVABLES> 984,231
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 4,887,801
<PP&E> 14,591,550
<DEPRECIATION> 5,735,220
<TOTAL-ASSETS> 15,518,148
<CURRENT-LIABILITIES> 1,601,911
<BONDS> 0
<COMMON> 1,866,260
0
0
<OTHER-SE> 5,058,400
<TOTAL-LIABILITY-AND-EQUITY> 15,518,148
<SALES> 6,845,734
<TOTAL-REVENUES> 6,845,734
<CGS> 4,024,080
<TOTAL-COSTS> 4,024,080
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 279,479
<INCOME-PRETAX> 1,544,690
<INCOME-TAX> 486,000
<INCOME-CONTINUING> 1,058,690
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,058,690
<EPS-PRIMARY> .05
<EPS-DILUTED> .05
</TABLE>
