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
For the quarter ended Commission file number
June 30, 1998 0-22837
TRAILER BRIDGE, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 13-3617986
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
10405 New Berlin Road E.
Jacksonville, FL 32226 (904) 751-7100
(address of principal (Zip Code) (Registrant's
executive offices) telephone number)
_________________________
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 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 June 30, 1998, 9,777,500 shares of the registrant's common
stock, par value $.01 per share, were outstanding.
<PAGE>
PART I
FINANCIAL INFORMATION
Item 1. Financial Statements.
The interim financial statements contained herein reflect all
adjustments which, in the opinion of management, are necessary for a fair
statement of the financial condition and results of operations for the
periods presented. They have been prepared in accordance with the
instructions to Form 10-Q and do not include all the information and
footnotes required by generally accepted accounting principles for
complete financial statements.
Operating results for the three and six month periods ended June 30,
1998 are not necessarily indicative of the results that may be expected
for the year ending December 31, 1998. In the opinion of management, the
information set forth in the accompanying balance sheet is fairly stated
in all material respects.
These interim financial statements should be read in conjunction with
the Company's audited financial statements for the three years ended
December 31, 1997 that appear in the Company's report on Form 10K.
Statements of Operations for the
Three and Six Month Periods Ended
June 30, 1998 and 1997 (unaudited) Page 3
Balance Sheets as of
June 30, 1998 and December 31, 1997 (unaudited) Page 4
Statements of Cash Flows for the
Six Months Ended June 30, 1998 and 1997 (unaudited) Page 5
Notes to Financial Statements as of
June 30, 1998 Page 6
<PAGE>
<TABLE>
TRAILER BRIDGE, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Three Months Six Months
Ended June 30, Ended June 30,
----------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------- ------------ ------------
<S> <C> <C> <C> <C>
OPERATING REVENUES ..................... $ 18,408,322 $ 16,170,687 $ 34,755,725 $ 32,616,753
OPERATING EXPENSES:
Salaries wages, and benefits ........ 3,931,179 12,089,167 7,824,621 15,493,434
Rent and purchased transportation:
Related Party .................... 1,829,100 1,911,000 3,638,100 3,801,000
Other ............................ 4,276,614 2,370,451 7,568,984 4,691,288
Fuel ................................ 1,381,577 1,375,321 2,720,289 2,932,754
Operating and maintenance
(exclusive of depreciation shown
separately below) ................ 3,957,817 3,022,278 7,200,223 6,227,894
Taxes and licenses .................. 116,885 75,690 248,082 231,927
Insurance and claims ................ 409,253 412,967 909,240 934,579
Communications and utilities ........ 212,359 135,999 354,466 270,447
Depreciation and amortization ....... 891,088 659,551 1,625,409 1,348,567
Other operating expenses ............ 991,578 851,693 1,969,397 1,670,394
----------- ----------- ----------- -----------
17,997,450 22,904,117 34,058,811 37,602,284
----------- ----------- ----------- -----------
OPERATING INCOME (LOSS)................. 410,872 (6,733,430) 696,914 (4,985,531)
NONOPERATING INCOME
(EXPENSE):
Interest expense, net:
Related Party .................... - (94,266) - (185,666)
Other ............................ (203,100) (165,299) (388,697) (337,315)
Gain on sale of equipment,
net .............................. 100,455 1,676 128,965 1,676
----------- ----------- ----------- -----------
(102,645) (257,889) (259,732) (521,305)
----------- ----------- ----------- -----------
INCOME (LOSS) BEFORE PROVISION AND
PRO FORMA PROVISION FOR
INCOME TAXES ........................ 308,227 (6,991,319) 437,182 (5,506,836)
PROVISION FOR INCOME TAXES ............. (159,129) (31,245) (218,928) (60,935)
----------- ----------- ----------- -----------
NET INCOME (LOSS) BEFORE PRO FORMA
PROVISION FOR INCOME TAXES........... 149,098 (7,022,564) 218,254 (5,567,771)
PRO FORMA BENEFIT FOR
INCOME TAXES (Note 2) ............... - 1,768,574 - 1,223,044
----------- ----------- ----------- -----------
PRO FORMA NET INCOME (LOSS)
(Note 2)............................. $ 149,098 $ (5,253,990) $ 218,254 $ (4,344,727)
=========== =========== =========== ===========
PRO FORMA NET INCOME (LOSS) PER
SHARE (Note 2) ...................... $ 0.02 $ (0.79) $ 0.02 $ (0.65)
=========== =========== =========== ===========
PRO FORMA WEIGHTED AVERAGE
SHARES OUTSTANDING .................. 9,777,500 6,672,500 9,777,500 6,672,500
=========== =========== =========== ===========
</TABLE>
<PAGE>
<TABLE>
TRAILER BRIDGE, INC.
BALANCE SHEETS
(Unaudited)
<CAPTION>
June 30, December 31,
1998 1997
------------- --------------
<S> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents $ 4,189,911 $ 14,277,445
Trade receivables, less allowance for doubtful
accounts of $773,891 and $1,165,874 8,741,376 7,852,992
Other receivables 493,431 35,947
Prepaid expenses 1,193,763 764,975
------------ -------------
Total current assets 14,618,481 22,931,359
Property and Equipment, net 50,863,497 30,282,611
Goodwill, less accumulated amortization of
$287,932 and $264,543 881,010 904,399
Restricted Cash and Investments 8,841,876 20,283,047
Other Assets 2,290,434 2,493,041
------------ -------------
TOTAL ASSETS 77,495,298 76,894,457
============ =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable 3,260,821 2,137,251
Other accrued liabilities 2,484,665 3,398,858
Current portion of notes payable 3,943,504 3,156,142
Current portion of capital lease obligations 41,066 35,908
Unearned revenue 125,861 163,084
Due to affiliate 40,200 60,300
------------ -------------
Total current liabilities 9,896,117 8,951,543
Notes Payable, less current portion 33,422,956 33,960,518
Capital Lease Obligations, less current portion 98,014 122,439
------------ -------------
TOTAL LIABILITIES 43,417,087 43,034,500
------------ -------------
Commitments
Stockholders' Equity:
Preferred stock, $.01 par value, 1,000,000 shares
authorized; no shares issued or outstanding - -
Common stock, $.01 par value, 20,000,000 shares
authorized; 9,777,500 shares issued and
outstanding in 1998 and 1997 97,775 97,775
Additional paid-in capital 37,982,818 37,982,818
Accumulated deficit in earnings (4,002,382) (4,220,636)
------------ -------------
Total stockholders' equity 34,078,211 33,859,957
------------ -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 77,495,298 76,894,457
============ =============
</TABLE>
<PAGE>
<TABLE>
TRAILER BRIDGE, INC.
STATEMENTS OF CASH FLOWS
For the six months ended June 30, 1998 and June 30, 1997
(Unaudited)
<CAPTION>
June 30, June 30,
1998 1997
------------ ------------
<S> <C> <C>
Operating activities:
Net income (loss) $ 218,254 $ (5,567,771)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation and amortization 1,625,409 1,348,567
Provision for doubtful accounts 192,346 234,493
Deferred income taxes 253,402 0
Noncash compensation 0 8,528,670
Gain on sale of fixed assets (128,645) (1,676)
Decrease (increase) in:
Trade receivables (1,080,730) 507,656
Other receivables (457,484) 0
Prepaid expenses (428,788) 198,554
Increase (decrease) in:
Accounts payable 1,123,570 40,744
Accrued liabilities (914,193) 470
Due to (from) affiliate (20,100) 0
Unearned revenue (37,223) (107,582)
----------- -----------
Net cash provided by operating
activities 345,818 5,182,125
----------- -----------
Investing activities:
Decrease in due to affiliate 0 1,697,011
Purchases & construction of property,
plant & equipment (22,813,819) (6,486,180)
Proceeds from sale of equipment 783,890 9,616
Decrease (increase) in deposits/other 133,959 (8,589,345)
Decrease for restricted cash and investments 11,441,171 0
----------- -----------
Net cash used in investing activities (10,454,799) (13,368,898)
----------- -----------
Financing activities:
Proceeds from borrowing on notes payable 1,746,591 12,523,622
Principal payments on notes payable (1,496,791) (2,053,062)
Debt issue costs (209,086) 0
Dividends 0 (1,185,750)
Principal payments under capital lease
obligations (19,267) (22,978)
----------- -----------
Net cash provided by financing
activities 21,447 9,261,832
----------- -----------
Net (decrease) increase in cash and cash
equivalants (10,087,534) 1,075,059
Cash and Cash Equivalents, beginning
of the period 14,277,445 1,658,921
----------- -----------
Cash and Cash Equivalents, end of
the period 4,189,911 2,733,980
=========== ===========
Supplemental cash flow information and
noncash investing and financing activities:
Unrecognized loss from like-kind
exchange transactions 610,041 0
</TABLE>
<PAGE>
TRAILER BRIDGE, INC.
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1998
The accompanying unaudited financial statements include all
adjustments, consisting of normal recurring accruals, which the Company
considers necessary for a fair presentation of the results of operations
for the periods shown. The financial statements have been prepared in
accordance with the instructions to Form 10-Q and, therefore, do not
include all information and footnotes necessary for a fair presentation of
financial position, results of operations and cash flows in conformity
with generally accepted accounting principles. The results of operations
for any interim period are not necessarily indicative of the results to be
expected for the full year. For further information, refer to the
Company's audited financial statements for the three years ended December
31, 1997 that appear in the Form 10-K.
2. PRO FORMA INFORMATION
Pro Forma Adjustments. Upon closing of the Company's initial public
offering, the Company's status as an S Corporation terminated. The pro
forma adjustments reflect a provision for income taxes that would have
been incurred had the Company not been organized under Subchapter S of the
Internal Revenue Code. The effective rate differs from the statutory rate
of 34% due to state income taxes (net of Federal income tax benefits),
amortization of goodwill and other nondeductible expenses and due to the
utilization of the net operating loss carryforwards of a corporation
acquired in 1992.
Pro Forma Net Income Per Share. Pro forma net income per share
reflects a 15,700-for-1 stock split that became effective with the
Company's stock offering.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations.
RESULTS OF OPERATIONS:
Three Months Ended June 30, 1998 and 1997
-----------------------------------------
The Company had total revenue of $18,408,322 for the three months
ended June 30, 1998, an increase of $2,237,635 or 13.8% compared to the
three months ended June 30, 1997. Core trailer volume to Puerto Rico
increased 29.2% compared to the year earlier period and total car and
other vehicle volume was up 21.6% compared to the year earlier period. As
a result, core trailer revenue to Puerto Rico increased $1,559,341 or
19.5% compared to the year earlier period and car and other vehicle
revenue increased $692,766 or 20.8% compared to the year earlier period.
Revenue from shipper owned or leased equipment moving to Puerto Rico
increased $183,380 or 17.0% primarily due to an increase in flatbed
volume. While trailer volume from Puerto Rico increased 22.1%, related
revenue increased only $170,120 or 7.8% compared to the year earlier
period due to continued rate pressure on the limited volumes moving
inbound from Puerto Rico. Non-Puerto Rico revenue of $1,080,454
represented a decrease of 24.2% from the year earlier period as available
tractor capacity was utilized more in Puerto Rico traffic lanes.
For the three month period ending June 30, 1998 operating income
was $410,872, a decrease of $1,384,368 or 77.1% from the $1,795,240
operating income before a non-recurring charge in the year earlier period.
Operating income was lower primarily because, while total revenue was up
13.8%, the Company incurred additional costs related to the operation of
54% more vessel capacity during most of the period. In addition, the
continuing competitive pressures on overall freight rates mitigated the
favorable effect that would have otherwise resulted from the 32.2% and
22.1% increases in total trailer volume to and from Puerto Rico. As a
result, The Company's operating ratio was 97.8% during the second quarter
of 1998 compared to the 88.9% operating ratio during the year earlier
period, exclusive of the non-recurring charge. Net interest expense of
$203,100 was down $56,465 or 21.8% compared to the year earlier period as a
result of an increase in earnings from temporary investments and the
capitalization of interest related to the construction of five new
vessels. During the period, the Company also had a gain of $100,455
related to the sale of older trailer equipment.
Income before income taxes for the three months ended June 30,
1998 was $308,227, a decrease of $1,229,124 or 80.0% from the year earlier
period, exclusive of the non-recurring charge. After income taxes, net
income for the three months ended June 30, 1998 was $149,098, or 84.0%
below pro forma net income of $933,785, for the year earlier period,
exclusive of the non-recurring charge, during which Trailer Bridge
operated as an S Corporation. Net income per share was $.02 for the
second quarter compared to $.14 for the year earlier period, exclusive of
the non-recurring charge.
For the three month period ending June 30, 1998 total volume to and
from Puerto Rico including cars and other vehicles grew 27.1% compared to
the year earlier period, roughly one-half the 54% increase in vessel
capacity growth. Total Puerto Rico revenue only increased 17.8% over the
year earlier period, implying a 7.5% reduction in the overall average
yield on the Company's Puerto Rico business compared to the same period
last year due to heightened rate activity in all segments.
Six Months Ended June 30, 1998 and 1997
---------------------------------------
Operating revenue increased $2.1 million or 6.6%, from $32.6 million
for the six months ended June 30, 1997 to $34.8 million for the six months
ended June 30, 1998. The increase was primarily due to increased trailer
and new vehicle volume to Puerto Rico partially offset by lower rates.
Salaries, wages and benefits increased $859,857 or 12.3%, from $6.9
million for the six months ended June 30, 1997, excluding a non-recurring
compensation charge, to $7.8 million for the six months ended June 30,
1998. The increase was primarily due to an overall increase in healthcare
expenses, increased administrative headcount and more company truck
drivers.
Rent and purchased transportation increased $2.7 million or 32.0%,
from $8.5 million for the six months ended June 30, 1997 to $11.2 million
for the six months ended June 30, 1998. The increase was primarily due to
the increased tug charter hire required for the two additional vessels and
to a lesser extent the increase in the number of partner carrier trucks
employed to service the additional inland transportation requirements.
Fuel expense decreased $212,465 or 7.2%, from $2.9 million for the
six months ended June 30, 1997 to $2.7 million for the six months ended
June 30, 1998. The decrease was directly related to lower fuel prices.
Overall fuel consumption increased due to the additional tugs.
Operating and maintenance expenses increased $1.0 million or 15.6%,
from $6.2 million for the six months ended June 30, 1997 to $7.2 million
for the six months ended June 30, 1998. The increase was primarily a
result of the increased volume, mostly marine terminal related expense
resulting from the increase to twice weekly Puerto Rico service.
Taxes and licenses increased $16,155 or 7.0%, from $231,927 for the
six months ended June 30, 1997 to $248,082 for the six months ended June
30, 1998. The increase relates to property taxes incurred during 1998 at
the new facility completed in the third quarter of 1997.
Insurance and claims expense decreased $25,339 or 2.7%, from $934,579
for the six months ended June 30, 1997 to $909,240 for the six months
ended June 30, 1998. The decrease primarily relates to lower claim volume
on used vehicles.
Communications and utilities expense increased $84,019 or 31.1%, from
$270,447 for the six months ended June 30, 1997 to $354,466 for the six
months ended June 30, 1998. The increase relates to increased voice
communication volume associated with increased headcount in addition to
increased utilities associated with operating the new facility.
Depreciation and amortization expense increased $276,842 or 20.5%,
from $1.3 million for the six months ended June 30, 1997 to $1.6 million
for the six months ended June 30, 1998. The increase relates to the two
new vessels and related revenue equipment, primarily containers and
chassis.
Other operating expenses increased $299,003 or 17.9%, from $1.7
million for the six months ended June 30, 1997 to $2.0 million for the six
months ended June 30, 1998. The increase relates to increased sales
expenses and professional fees. The increase in professional fees is
primarily related to Year 2000 compliance.
Interest expense net of interest income decreased $134,284 or 25.7%,
from $522,981 for the six months ended June 30, 1997 to $388,697 for the
six months ended June 30, 1998. The decrease was a result of an increase
in earnings from temporary investments and the capitalization of interest
related to the construction of five new vessels.
Trailer Bridge also had a gain of $128,965 related to the sale of
older trailer equipment for the six months ended June 30, 1998.
LIQUIDITY AND CAPITAL RESOURCES
The Company's financial condition remained strong. At June 30, 1998,
available cash amounted to $4.2 million, working capital was $4.7 million
and stockholders equity was equal to $34.1 million.
Net cash provided by operating activities was $345,818 for the first
six months of 1998, compared with $5.1 million in 1997.
Net cash used in investing activities was $10.4 million in 1998 and
$13.4 million in 1997. The investment spending was primarily for the two
new vessels and the related revenue equipment, primarily 53' containers
and chassis.
The vessels were funded primarily from Title XI financing and the
revenue equipment was funded primarily from the remaining proceeds of the
Company's IPO in 1997. On July 21, 1998, BankBoston approved a $25 million
revolving credit/term loan facility that can be utilized for general
corporate purposes.
Management believes that cash flow from operations combined with the
Company's borrowing capacity under it's revolving credit/term loan
facility will be adequate to meet the Company's debt service requirements,
fund continued growth, and meet working capital needs.
YEAR 2000
The Company developed a plan during 1997 to deal with the Year 2000
problem. The Year 2000 problem is the result of computer programs being
written using two digits rather than four to define the applicable year.
The Company's plan provides for the conversion efforts to be completed by
the end of 1998. The total cost of the project is currently estimated to
be $200,000 and is being funded through operating cash flows. The Company
is expensing all costs associated with these systems changes as the costs
are incurred. As of June 30, 1998, approximately $45,000 had been expensed
since the project was initiated.
FORWARD-LOOKING STATEMENTS
This report may contain statements that may be considered as forward-
looking or predictions concerning future operations. Such statements are
based on management's belief or interpretation of information currently
available. These statements and assumptions involve certain risks and
uncertainties and management can give no assurance that such expectations
will be realized. Among all the factors and events that are not within the
Company's control and could have a material impact on future operating
results are general economic conditions, cost and availability of diesel
fuel, adverse weather conditions and competitive rate fluctuations.
PART II
OTHER INFORMATION
Item 2. Changes in Securities and Use of Proceeds
In July 1997, the Company effected an initial public offering (the
"Offering") of its Common Stock, par value $.01 per share, pursuant to a
Registration Statement on Form S-1 (File No. 333-28221) that was declared
effective by the Securities and Exchange Commission on July 23, 1997. The
Offering commenced on July 24, 1997. The closing of the Offering occurred
on July 29, 1997 with respect to 2,700,000 shares of Common Stock offered
by the Company. An over-allotment option was exercised by the Company's
underwriters on August 25, 1997 with respect to 405,000 shares.
The following table summarizes the number of shares of Common Stock
and aggregate offering price of the shares registered for the account of
the Company and the amount and aggregate offering price sold:
<TABLE>
For the account of the Company
<CAPTION>
Aggregate Offering Aggregate Offering
Price Price
Amount registered of amount registered Amount Sold of amount sold
----------------- -------------------- ----------- ------------------
<C> <C> <C> <C>
3,105,000 $ 31,050,000 3,105,000 $31,050,000
</TABLE>
The following table summarizes the gross proceeds to the Company, the
expenses incurred for the Company's account, and the net proceeds to the
Company in connection with the issuance and distribution of Common Stock
by the Company in the Offering:
Gross proceeds: $ 31,050,000
Underwriting discounts and commissions: $ 2,173,500
Other expenses: $ 385,525
-----------
Total expenses: $ 2,558,025
-----------
Net proceeds $ 28,490,975
===========
The following table summarizes the amounts of net Offering proceeds
to the Company used for the purposes listed through the date of this
report:
Use of Proceeds Amount
--------------- ------
Funding S Corporation Dividend $ 6,000,000
Purchase of machinery and equipment: $ 12,595,363
Repayment of indebtedness $ 4,825,227
Down payment on new vessels $ 2,416,984
Working Capital/Temporary investments $ 2,653,401
Item 4. Submission of Matters to a Vote of Security Holders
The Company held its 1998 annual meeting of stockholders on May 20,
1998. The proposals submitted to a vote and the results of the vote are
set forth below.
1. Election of Directors. At the meeting, shareholders voted to
re-elect the Board of Directors' nominees. The vote was as follows:
Shares Voted Shares
Nominee For Nominee Withheld
------- ------------ --------
Artis E. James 9,527,427 9,400
John D. McCown 9,523,027 13,800
M.P. McLean 9,523,027 13,800
Kenneth G. Younger 9,527,927 8,900
2. Approval of Stock Purchase Plan. At the meeting, shareholders
approved the Company's Employee Stock Purchase Plan (the "Plan"). A total
of 9,517,264 shares were voted in favor of the Plan, 16,000 shares were
voted against, and 3,563 shares abstained.
Item 5. Other Information
The deadline for submission of shareholders proposals pursuant to
Rule 14a-8 under the Securities Exchange Act of 1934, as amended ("Rule
14a-8") for inclusion in the Company's proxy statement for its 1999 Annual
Meeting of Shareholders is December 24, 1998. After March 9, 1999, notice
to the Company of a shareholder proposal submitted otherwise than
pursuant to Rule14a-8 will be considered untimely, and the persons named
in the proxies solicited by the Company's Board of Directors for its 1999
Annual Meeting of Shareholders may exercise discretionary voting power
with respect to any such proposal as to which the Company does not receive
timely notice.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
Exhibit Page Number or Incorporated
Number Description by Reference to
------- ----------- ---------------------------
27 Financial Data Schedule Page 14 of sequentially
numbered pages
(b) Reports on Form 8-K - None
<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 thereto duly authorized.
TRAILER BRIDGE, INC.
Date: August 14, 1998 By: /s/ John D. McCown
John D. McCown
Chairman and Chief
Executive Officer
Date: August 14, 1998 By: /s/ Mark A. Tanner
Mark A. Tanner
Vice President of Administration
and Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONDENSED
FINANCIAL STATEMENTS OF TRAILER BRIDGE, INC. AS OF AND FOR THE THREE MONTHS
ENDED JUNE 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> APR-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 4,189,911
<SECURITIES> 0
<RECEIVABLES> 9,515,267
<ALLOWANCES> (773,891)
<INVENTORY> 0
<CURRENT-ASSETS> 14,618,481
<PP&E> 55,798,989
<DEPRECIATION> (4,935,492)
<TOTAL-ASSETS> 77,495,298
<CURRENT-LIABILITIES> 9,896,117
<BONDS> 33,520,970
0
0
<COMMON> 97,775
<OTHER-SE> 33,980,436
<TOTAL-LIABILITY-AND-EQUITY> 77,495,298
<SALES> 0
<TOTAL-REVENUES> 18,408,322
<CGS> 0
<TOTAL-COSTS> 17,997,450
<OTHER-EXPENSES> 102,645
<LOSS-PROVISION> 192,346
<INTEREST-EXPENSE> 203,100
<INCOME-PRETAX> 308,227
<INCOME-TAX> 159,129
<INCOME-CONTINUING> 149,098
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 149,098
<EPS-PRIMARY> .02
<EPS-DILUTED> .02
</TABLE>
