<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 MARCH 31, 1996
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, 18,896,551 shares outstanding as of May
6, 1996.
===============================================================================
<PAGE> 2
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
----
PART I: FINANCIAL INFORMATION
<S> <C>
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>
March 31, March 31,
Assets 1996 December 31, Liabilities and stockholders' equity 1996 December 31,
(unaudited) 1995 (unaudited) 1995
--------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C>
Current assets: Current liabilities:
Cash and cash equivalents $ 3,606,503 $ 3,985,459 Current maturities of long-term obligations $ 154,716 $ 151,019
Accounts receivable, net 1,259,182 871,968 Accounts payable 622,495 137,308
Prepaid expenses 188,503 182,132 Accrued payroll 56,390 79,235
Deferred tax asset 48,000 134,000 Accrued fees 155,907 143,582
---------- ----------
Total current assets 5,102,188 5,173,559 Accrued taxes 14,643 149,318
---------- ----------
Accrued other 278,712 113,045
Deferred revenue 229,955 441,200
--------- ----------
Property and equipment: Total current liabilities 1,512,818 1,214,707
--------- ----------
Land, primarily disposal site 11,804,536 11,337,667 Long-term obligations, less current
Building and improvements 322,692 150,793 maturities 4,676,875 4,094,450
Vehicles and equipment 4,446,463 3,105,178 Accrued Royalties 1,133,728 1,207,591
Closure obligations 1,575,184 1,511,647
---------- ----------
16,573,691 14,593,638 Deferred tax liability 176,000 161,000
Less: accumulated depreciation (6,687,319) (6,224,889) Minority interest 61,568 61,564
---------- ---------- --------- ----------
Total liabilities 9,136,173 8,250,959
--------- ----------
Net property and equipment 9,886,372 8,368,749
---------- ----------
Stockholders' equity:
Preferred stock, authorized 5,000,000 shares,
$.01 par value; none issued or outstanding - -
Common stock, authorized 50,000,000 shares,
Other assets: $.10 par value; issued and outstanding
Cost in excess of net assets o 18,896,551 shares in 1996 and 18,662,605
acquired businesses, net of shares in 1995 1,889,655 1,866,260
amortization 1,310,975 1,067,701 Additional paid-in capital 6,547,715 6,191,110
Funds held in escrow 985,535 985,535 Change in unrealized losses 67,046 67,046
Other 44,501 41,772 Accumulated deficit (311,018) (738,059)
---------- ---------- --------- ----------
Total other assets 2,341,011 2,095,008 Total stockholders' equity 8,193,398 7,386,357
---------- ---------- --------- ----------
Total assets $17,329,571 $15,637,316 Total liabilities & stockholders' equity $17,329,571 $15,637,316
========== ========== ========== ==========
</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
March 31,
------------------------------
1996 1995
----------- -----------
<S> <C> <C>
Net revenues $ 2,256,873 $ 2,334,924
Cost and expenses:
Operating 1,111,699 1,337,439
Selling, general and administrative 390,449 353,058
----------- -----------
Income from operations 754,725 644,427
Other income (expense):
Other income, primarily interest 48,144 15,580
Interest expense (90,782) (92,152)
----------- -----------
Income from operations before income taxes 712,087 567,855
Income tax provision 285,046 266,657
----------- -----------
Net income $ 427,041 $ 301,198
=========== ===========
Earnings per common and common equivalent share $0.02 $0.02
=========== ===========
Weighted average common and common equivalent
shares 20,407,460 18,881,066
=========== ===========
</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>
Three Months Ended
-------------------------------
March 31, March 31,
1996 1995
---------- ----------
<S> <C> <C>
Cash Flows from operating activities:
Net income $ 427,041 $ 301,198
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization 477,879 637,095
Non cash interest expense - 80,823
Non cash closure costs 63,537 165,086
Loss (gain) on sale of equipment (1,179) 918
Deferred taxes 101,000 -
Changes in assets and liabilities:
Accounts receivable (232,740) (118,822)
Prepaid expenses 3,976 (14,149)
Accounts payable & accrued liabilities 134,367 (170,629)
Deferred revenue (211,245) (371,498)
---------- ----------
Net cash provided by operating activities 762,636 510,022
---------- ----------
Cash flows from investing activities:
Additions to property and equipment (737,387) (1,402,966)
Proceeds from the sale of equipment 11,000 150
Funds held in escrow and other 1,953 (821)
Acquisition of business, net of cash acquired (301,522) -
---------- ----------
Net cash used in investing activities (1,025,956) (1,403,637)
---------- ----------
Cash flows from financing activities:
Payment of debt and capital lease obligations (115,636) (105,917)
---------- ----------
Net cash used in financing activities (115,636) (105,917)
---------- ----------
Decrease in cash and cash equivalents (378,956) (999,532)
Cash and cash equivalents, beginning of period 3,985,459 1,633,398
---------- ----------
Cash and cash equivalents, end of period $3,606,503 $ 633,866
========== ==========
</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 March 31, 1996 and March 31, 1995
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 expected for a full year. These statements should be read
in conjunction with the Company's Annual Report for 1995 on Form 10-K dated
March 29, 1996.
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 $175,000 and $90,000 for income taxes
and $99,000 and $9,000 for interest during the three months ended March 31,
1996 and March 31, 1995, respectively.
<TABLE>
<CAPTION>
3 MONTHS ENDED MARCH 31,
SIGNIFICANT NON-CASH TRANSACTIONS 1996 1995
---- ----
<S> <C> <C>
Purchase of equipment and vehicles
financed by notes payable. 104,118
Assumption of debt associated with
purchase of business 614,000
Capital expenditures included in
quarter end accounts payable but not
yet paid 291,184
</TABLE>
Income Taxes
The current provision for income taxes at March 31, 1996 consists of
Federal income tax expense of $138,000 and state income tax expense of $46,000.
The deferred income tax provision is $101,000 which represents the use of AMT
tax credits. The income tax provision for the period
5
<PAGE> 7
ended March 31, 1995 consisted of $216,000 representing the decrease in the
deferred tax asset for the recognition of net operating loss carryforwards and
$51,000 for state estimated taxes.
3) ISSUANCE OF 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 utilized
the feature of issuing additional Debentures in payment of interest 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 through March 31, 1996 on the
Debentures amounts to $85,000. 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.
4) ACQUISITION
On March 21, 1996, the Company acquired North Florida Sweeping, Inc.
("NFS"), a street sweeping and solid waste rolloff collection company located
in Jacksonville, FL. The consideration given of $1,349,000 consisted of
$280,000 of common stock (233,946 shares of the Company's stock valued at
$1.197 per share as agreed to between the parties) cash of $355,000, assumption
of NFS debt in the amount of $614,000 and 75,000 common stock warrants that are
exercisable at $1.25 per share. The Company also extended the warrant
agreement to February 2, 1998 to Allen & Company in connection with the
purchase of NFS for investment advisory services provided to the Company. The
Company assigned a value of $100,000 to this modification in accordance with
FASB 123 (accounting for stock based compensation).
The acquisition was accounted for by the purchase method of
accounting, and accordingly, the consideration given has been allocated to the
assets acquired and the liabilities assumed based on the estimated fair values
at the date of acquisition. The excess of the purchase price over the fair
value of the assets acquired was approximately $257,000 and has been recorded
as goodwill, which is being amortized on a straight line basis over 20 years.
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 March 31, 1996 consisted of collection
revenues of $818,000, disposal revenues of $1,164,000, transfer revenues of
$218,000 and sweeping revenues of $57,000. Collection revenues increased 18%,
disposal revenues decreased 19% over first quarter 1995 results. There were no
related sweeping revenues for the first quarter of 1995. Sweeping operations
commenced on March 22, 1996 with the acquisition of North Florida Sweeping,Inc.
("NFS"), and results are for a partial month. The increase in collection
revenues is primarily attributed to higher levels of commercial and municipal
services. Lower disposal revenues principally reflect the decreased volumes at
the Pecan Row Landfill and excludes all intercompany activity.
Operating expenses related to the collection, disposal, transfer
activities and sweeping for the quarter ended March 31, 1996, consisted of
collection expenses of $367,000, disposal expenses of $620,000, transfer
expenses of $88,000 and sweeping expenses of $37,000. Costs and expenses for
collection operations increased 17% over the first quarter of 1995. Disposal
operating costs decreased 34% from the first quarter of 1995. The increases in
collection costs were principally related to higher operating levels in 1995.
The decrease in disposal costs resulted from 1) decreased volumes compared to
the first quarter of 1995 and 2) a reduction in cell related amortization rates
due to the Company's obtaining a permit modification to expand the landfill
vertically. The Company's cell related amortization rates decreased by $3.40
per ton or $193,000 for the first quarter of 1996. Transfer station cost
increased 6% due to increased volumes.
Selling, general and administrative expenses for collection, disposal
and collection activities in the first quarter ended March 31, 1996, were
$74,000, $79,000 and $1,000, respectively, as compared to $70,000, $79,000 and
$1,000 for the first quarter of 1995. Sweeping administration expenses for the
first quarter of 1996 were $4,000 with no comparable expenses in 1995.
Corporate overhead for the most recent three months was $217,000 as compared to
$202,000 in the first quarter of 1995. The increase in corporate overhead
resulted primarily from increased professional fees and related expenses.
Net income for the quarter ended March 31, 1996 was $427,000. Higher
operating levels and decreased cell related amortization costs during this
first quarter of 1996 resulted in a $126,000 improvement over the 1995 first
quarter results.
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.
7
<PAGE> 9
<TABLE>
<CAPTION>
THREE MONTHS THREE MONTHS
ENDED ENDED
MARCH 31, 1996 MARCH 31, 1995
-------------- --------------
<S> <C> <C>
Revenues:
Disposal $1,163,356 $1,432,905
Collection 818,284 694,728
Transfer 218,364 207,291
Sweeping 56,869 --
---------- ----------
Total 2,256,873 2,334,924
Operating Expenses (1) 587,718 546,445
---------- ----------
Gross Margin before non-cash items 1,669,155 1,788,479
Selling, General and Administrative (2) $ 158,738 $ 142,579
---------- ----------
Operating Cash Flow from disposal,
collection, transfer and sweeping companies (3) $1,510,417 $1,645,900
========== ==========
</TABLE>
- ----------------------------
1. Excludes depreciation and non-cash closure costs of $523,981 and
$790,994 for period ending March 31, 1996 and 1995, respectively.
2. Excludes amortization expense of $14,223. No corporate overhead has
been allocated, $217,488 and $202,697 for the period ending
March 31, 1996 and 1995, respectively.
3. Capital expenditures were $977,071 and $837,130 for the period ending
March 31, 1996 and 1995, respectively which resulted in free cash
flow of $533,346 and $808,770 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 March 31, 1996, the
Company had positive working capital of $3,589,370 as compared with $3,958,852
at December 31, 1995. The decrease in working capital resulted primarily from
the purchase of NFS in the first quarter of 1996.
The Company's operating performance is expected to be sufficient to
support corporate overhead and other expenses during 1996. Management believes
that current working capital and internally generated funds will be sufficient
to meet the Company's working capital requirements during 1996.
Ongoing Capital Requirements and Expansion
Historically, the Company has relied primarily 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 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.
8
<PAGE> 10
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 $2,600,000 in 1996. The Company expects
that it will fund such estimated capital expenditures from existing cash, cash
generated from operations and equipment lease financing.
Acquisitions
The Company's business strategy includes the acquisition, on
financially attractive terms, of additional solid waste management companies as
well as related sanitation and infrastructure maintenance business. Such
acquisitions may be accomplished through the issuance of the Company's common
stock, cash on hand, or may require cash in excess of the Company's current
cash available. Although GeoWaste's improved operating results and financial
performance are expected to improve its access to any financing which may be
necessary to acquire such businesses, there can be no assurance that such
additional financing can be obtained on terms acceptable, to the Company.
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. The Company intends to pursue the further expansion of the Pecan
Row Landfill through the permitting of a new facility near or adjacent to the
existing site.
On March 21, 1996 the Company acquired North Florida Sweeping Inc.,
("NFS"), a street sweeping and solid waste roll off collection company located
in Jacksonville, Florida. The consideration given of $1,349,000 consisted of
$280,000 worth of stock (233,946 shares valued at 1.197 per share), cash of
$355,000, assumption of debt in the amount of $614,000 and 75,000 warrants
issued at $1.25 per share. The Company also extended the warrant agreement to
February 2, 1998 to Allen & Company in connection with the purchase of NFS for
investment advisory services provided to the Company. The Company assigned a
value of $100,000 to this modification in accordance with FASB 123 (accounting
for stock based compensation).
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 March 31, 1996 - Exhibit 11.1
Three month period ended March 31, 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
May 15, 1996
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 March 31, 1996. . . . . . . . . .. . . . . . . . . . 13
11.2 Computation of Net Earnings Per Share
for the three month period ended March 31, 1995. . . . . . . . . . . . . . . . . . . 14
27 Financial Data Schedule (for SEC use only) . . . . . . . . . . . . . . . . . . . . .
</TABLE>
12
<PAGE> 1
EXHIBIT 11.1
GEOWASTE INCORPORATED AND SUBSIDIARIES
COMPUTATION OF NET EARNINGS PER SHARE
FOR THE THREE MONTHS ENDED MARCH 31, 1996
<TABLE>
<CAPTION>
Fully
Primary Diluted
---------- ----------
<S> <C> <C>
Weighted Average Common Shares
outstanding . . . . . . . . . . . . . . . . . . . . . . . . 18,838,065 18,838,065
Convertible debt . . . . . . . . . . . . . . . . . . . . . -- 2,774,475
Stock options and warrants outstanding . . . . . . . . . . 1,527,975 1,931,504
--------- -----------
Weighted average shares of common shares outstanding . . . 20,366,040 23,544,044
========== ==========
Net income . . . . . . . . . . . . . . . . . . . . . . . . $ 427,042 $ 509,581
============ ===========
Earnings per share . . . . . . . . . . . . . . . . . . . . $ .02 $ .02
============ ===========
</TABLE>
13
<PAGE> 1
EXHIBIT 11.2
GEOWASTE INCORPORATED AND SUBSIDIARIES
COMPUTATION OF NET EARNINGS PER SHARE
FOR THE THREE MONTHS ENDED MARCH 31, 1995
<TABLE>
<CAPTION>
Fully
Primary Diluted
---------- ----------
<S> <C> <C>
Weighted Average Common Shares
outstanding . . . . . . . . . . . . . . . . . . . . . . . 18,662,605 18,662,605
Convertible debt . . . . . . . . . . . . . . . . . . . . . -- 2,745,903
Stock options and warrants outstanding . . . . . . . . . . 218,461 396,345
------------ -----------
Weighted average shares of common shares outstanding . . . 18,881,066 21,804,853
============ ===========
Net income . . . . . . . . . . . . . . . . . . . . . . . . $ 301,198 $ 382,021
============ ===========
Earnings per share . . . . . . . . . . . . . . . . . . . . $ .02 $ .02
============ ===========
</TABLE>
14
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<CURRENCY> US DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<EXCHANGE-RATE> 1
<CASH> 3,606,503
<SECURITIES> 0
<RECEIVABLES> 1,259,182
<ALLOWANCES> 18,355
<INVENTORY> 0
<CURRENT-ASSETS> 5,102,188
<PP&E> 16,573,691
<DEPRECIATION> 6,687,319
<TOTAL-ASSETS> 17,329,571
<CURRENT-LIABILITIES> 1,512,818
<BONDS> 0
1,889,655
0
<COMMON> 0
<OTHER-SE> 6,303,743
<TOTAL-LIABILITY-AND-EQUITY> 17,329,571
<SALES> 2,256,873
<TOTAL-REVENUES> 2,256,873
<CGS> 1,111,699
<TOTAL-COSTS> 1,111,699
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 90,782
<INCOME-PRETAX> 712,087
<INCOME-TAX> 285,046
<INCOME-CONTINUING> 427,041
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 427,041
<EPS-PRIMARY> .02
<EPS-DILUTED> .02
</TABLE>
