<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(Mark One)
( X ) Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the 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 from ______ to _______
Commission File Number: 0-8187
MEDICAL RESOURCE COMPANIES OF AMERICA
(Name of Small Business Issuer in its Charter)
NEVADA 75-2399477
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
4265 KELLWAY CIRCLE, ADDISON, TEXAS 75244
(Address of principal executive offices) (Zip Code)
Issuer's telephone number, including area code: (214) 407-8400
Securities registered pursuant to Section 12(b) of the Act: Common stock, par
value $.01
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the past twelve months
(or for such shorter period that the issuer was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.
YES X NO
--- ---
At October 31, 1995, the issuer had outstanding 17,522,000 shares of par value
$.01 common stock.
1
<PAGE>
Medical Resource Companies of America
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
--------------------
The accompanying unaudited Consolidated Financial Statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB and Item 310 of
Regulation S-B. These financial statements have not been examined by
independent certified public accountants, but in the opinion of management, all
adjustments (consisting of normal recurring accruals) necessary for a fair
presentation of consolidated results of operations, consolidated financial
position and consolidated cash flows at the dates and for the periods indicated,
have been included.
These financial statements do not include all of the information and footnotes
required by generally accepted accounting principles for complete financial
statements. Operating results for the nine month period ended September 30,
1995 are not necessarily indicative of the results that may be expected for the
year ended December 31, 1995. For further information, refer to the
Consolidated Financial Statements and notes thereto included in the Company's
Annual Report on Form 10-KSB for the fiscal year ended December 31, 1994.
2
<PAGE>
Medical Resource Companies of America
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
<TABLE>
<CAPTION>
September 30, December 31,
1995 1994
-------------- ------------
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash $10,567 $ 8,376
Accounts receivable - trade, less
allowance of $191 in 1995 and
$630 in 1994 884 2,079
Loans receivable 1,190 -
Inventories 342 370
Deferred income tax benefit 33 2,185
Real estate under contract of sale - 14,889
Due from affiliates 181 185
Other current assets 1,167 1,274
------- -------
Total current assets 14,364 29,358
REAL ESTATE 3,158 3,204
INVESTMENT IN SECURITIES, AT COST 1,780 1,678
MORTGAGE NOTES RECEIVABLE 6,870 6,700
PROPERTY, PLANT AND EQUIPMENT, AT COST
Land 100 100
Buildings and improvements 767 767
Construction-in-progress 122 -
Equipment and furnishings 398 388
Rental equipment 1,901 1,663
------- -------
3,288 2,918
Less accumulated depreciation 1,317 993
------- -------
1,971 1,925
OTHER ASSETS
Excess of cost of purchased companies
over net assets acquired, net of
accumulated amortization of $493 and
$426 in 1995 and 1994, respectively 1,281 1,347
Patents, net of accumulated amortization
of $287 and $249 in 1995 and 1994,
respectively 560 598
Other 192 414
------- -------
2,033 2,359
------- -------
$30,176 $45,224
======= =======
</TABLE>
3
<PAGE>
Medical Resource Companies of America
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
<TABLE>
<CAPTION>
September 30, December 31,
1995 1994
-------------- ------------
(Unaudited)
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Note payable $ - $ 5,022
Current maturities of long-term
debt 71 379
Long-term debt collateralized by
properties under contract of sale - 8,933
Accounts payable - trade 630 1,319
Accrued expenses 1,355 1,755
Other current liabilities 107 1,479
------- --------
Total current liabilities 2,163 18,887
LONG-TERM DEBT 904 1,110
DEFERRED GAIN 3,083 3,083
STOCKHOLDERS' EQUITY
Series A cumulative preferred stock,
$.10 par value; liquidation value of
$1,085 in 1994; authorized, 10,000
shares; issued and outstanding 1,085
shares in 1994 - 108
Series B cumulative convertible preferred
stock, $.10 par value; liquidation
value of $1,330 and $1,351 in 1995 and
1994,respectively; authorized, 100
shares; issued and outstanding, 13 and
14 shares in 1995 and 1994, respectively 1 1
Series C cumulative convertible preferred
stock, $.10 par value; liquidation
value of $2,000; authorized, issued and
outstanding, 20 shares 2 2
Common stock, $.01 par value; authorized,
100,000 shares; issued, 17,581 and
18,542 shares in 1995 and 1994,
respectively 188 185
Additional paid-in capital 34,361 36,442
Accumulated deficit (8,088) (12,156)
------- --------
26,464 24,582
Less stock purchase notes receivable (2,438) (2,438)
------- --------
24,026 22,144
------- --------
$30,176 $ 45,224
======= ========
</TABLE>
4
<PAGE>
Medical Resource Companies of America
CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts in thousands, except per share data)
<TABLE>
<CAPTION>
For the Three For the Nine
Month Period Ended Month Period Ended
September 30, September 30,
1995 1994 1995 1994
------ ------ ------ ------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Revenue
Sales and rentals of mobility
products $ 772 $ 727 $ 1,659 $ 1,645
Long-term care facilities
operating revenue - 1,944 552 5,977
Real estate operations 149 245 521 1,844
Gain on sales of assets 1,138 850 7,043 3,749
Interest and dividends 383 154 966 374
Other 5 - 14 -
------ ------ ------- -------
2,447 3,920 10,755 13,589
------ ------ ------- -------
Expenses
Cost of mobility products sales
and rentals 443 385 1,275 1,204
Long-term care facilities
operating expenses - 1,264 318 3,817
Real estate operations 83 149 270 1,404
General and administrative 788 1,030 2,371 2,916
Interest 29 677 179 2,290
------ ------ ------- -------
1,343 3,505 4,413 11,631
------ ------ ------- -------
Earnings from continuing
operations before
income taxes 1,104 415 6,342 1,958
Income tax expense 371 141 2,152 666
------ ------ ------- ------
Earnings from continuing
operations 733 274 4,190 1,292
Discontinued operations
Earnings from operations,
net of income taxes - 81 - 135
Gain on disposal,
net of income taxes - - - 530
------ ------ ------- -------
NET EARNINGS 733 355 4,190 1,957
Preferred stock dividend
requirement 48 73 176 254
------- ------ ------- -------
Earnings allocable to common
shareholders $ 685 $ 282 $ 4,014 $ 1,703
======= ====== ======= =======
</TABLE>
5
<PAGE>
Medical Resource Companies of America
CONSOLIDATED STATEMENTS OF EARNINGS - CONTINUED
(Amounts in thousands, except per share data)
For the Three For the Nine
Month Period Ended Month Period Ended
September 30, September 30,
1995 1994 1995 1994
-------- -------- ------- --------
(Unaudited) (Unaudited)
Earnings per share
Continuing operations $ .04 $ .01 $ .23 $ .06
Net earnings $ .04 $ .01 $ .23 $ .09
Weighted average number of common
and equivalent shares outstanding 17,448 18,395 17,755 18,395
6
<PAGE>
Medical Resource Companies of America
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
<TABLE>
<CAPTION>
For The Nine
Month Period Ended
September 30, September 30,
1995 1994
------------- -------------
(Unaudited) (Unaudited)
<S> <C> <C>
Cash flows from operating activities
Net earnings $ 4,190 $ 1,957
Adjustments to reconcile net
earnings to net cash used in
operating activities
Depreciation and amortization 528 1,393
Gain on sales of assets (7,043) (2,739)
Gain on sale of subsidiary - (804)
Recognition of deferred gain - (1,010)
Changes in operating assets
and liabilities
Due from/to affiliates 4 (175)
Accounts receivable 1,195 (469)
Refundable income taxes - 945
Deferred tax benefit 2,152 877
Inventories 28 186
Other current and noncurrent
assets 760 (2,317)
Accounts payable and other
liabilities (2,461) (163)
------- -------
Total adjustments (4,837) (4,276)
------- -------
Net cash used in operating
activities (647) (2,319)
Cash flows from investing activities
Proceeds from sales of assets, net 21,197 25,141
Additions to loans receivable (5,788) -
Repayments of loans receivable 4,599 -
Additions to real estate (33) (458)
Purchase of property and equipment (377) (832)
Sale of subsidiary - (273)
------- -------
Net cash provided by
investing activities 19,598 23,578
</TABLE>
7
<PAGE>
Medical Resource Companies of America
CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED
(Amounts in thousands)
<TABLE>
<CAPTION>
For The Nine
Month Period Ended
September 30, September 30,
1995 1994
--------- ----------
(Unaudited) (Unaudited)
<S> <C> <C>
Cash flows from financing activities
Proceeds from borrowings
Affiliates $ - $ 1,000
Other - 2,752
Payments on debt (14,252) (20,180)
Dividends on preferred stock (122) (130)
Retirement of preferred stock (1,085) -
Purchase of treasury stock (1,301) -
Repurchase of stock options - (178)
-------- --------
Net cash used in
financing activities (16,760) (16,736)
-------- --------
NET INCREASE IN CASH 2,191 4,523
Cash at beginning of period 8,376 1,083
-------- --------
Cash at end of period $ 10,567 $ 5,606
========= ========
</TABLE>
Supplemental information on noncash investing and financing activities is as
follows:
<TABLE>
<CAPTION>
Sale of subsidiary
<S> <C> <C>
Noncash assets $ - $ 4,462
Liabilities - (3,861)
Preferred stock received - (1,678)
Gain on sale of subsidiary - 804
--------- --------
Subsidiary cash $ - $ (273)
========= ========
Conversion of subordinated debenture
Debt retired (200,000)
Common stock issued 200,000
</TABLE>
8
<PAGE>
ITEM 2. Management's Discussion and Analysis of Financial
-------------------------------------------------
Condition and Results of Operations.
------------------------------------
Medical Resource Companies of America and its subsidiaries ("Medical Resource"
or the "Company") is currently focusing its primary efforts on developing and
managing facilities which will provide full service residential retirement and
personal assistance with the Activities of Daily Living (ADLs) as needed for
the elderly. The Company also provides mobility assistance services for all
ages in tourist attractions and airports. Medical Resource's services are
provided through a number of subsidiaries comprising two divisions:
residential retirement care and mobility assistance services. Through its
subsidiary, EquiVest Inc., the Company also owns commercial real estate
investments.
Originally founded in 1974 as a real estate investment trust organized in
California, in May 1991 Medical Resource transferred all its assets to a
Nevada corporation bearing the same name in order to continue operations in a
more conventional incorporated form. Its primary focus was on residential
retirement and healthcare services and products for the elderly and mobility
impaired. During 1994 and early 1995 the Company disposed of its nursing homes
and retirement center properties and changed its healthcare focus to meeting
the full service residential retirement and assisted living needs of the
elderly.
RESIDENTIAL RETIREMENT AND ASSISTED LIVING
- ------------------------------------------
During the past four years a basic strategy of Medical Resource was to acquire
retirement, nursing and other healthcare facilities with the intention of
improving the physical structure, occupancy and management efficiency of those
facilities. Eventually the facilities would be sold to generate profits and
provide working capital to grow the Company and increase stockholders' equity.
The Company began development of a focused full service residential retirement
and assisted living strategy in 1994. Medical Resource believes the overall
demand for alternative lifestyles for the elderly is rapidly increasing.
Providing a residential lifestyle, maximizing choices and independence while
enhancing the quality of life of a growing segment of elderly, upscale
consumers, particularly the frail elderly, is a "growth" industry. Medical
Resource has discussed affiliations and joint ventures with several companies
involved in the full service residential retirement and assisted living
industry. The Company is investigating markets and development sites in
several states with a view toward designing and building a chain of
proprietary assisted living centers. The Company will manage some facilities
and may employ third party managers in others.
In August 1995 the Company began construction of a 48 unit, 96 bed assisted
living center in Denison, Texas. It is anticipated that this design will be
the basic model for future facilities to be built. The Company also has a
facility under construction in Muskogee, Ok. The Company currently has four
sites under contract in the state of Texas. The Company is also investigating
sites in other markets in the state of Texas and in other states.
9
<PAGE>
MOBILITY ASSISTANCE SERVICES
- ----------------------------
The Company, through its subsidiary, Odyssey Mobility Systems, Inc. (Odyssey),
provides electric convenience vehicles (ECVs), manual wheelchairs and
children's strollers to theme parks, zoos and other attractions throughout the
United States. ECVs are three and four wheel battery powered units which
travel approximately 5 miles per hour and are utilized principally by the
elderly and handicapped to assist in their mobility.
Odyssey currently provides its products to theme parks and zoos including
SeaWorld, Disney World, The San Diego Zoo, Busch Gardens and the State Fair of
Texas, among others. The products are supplied either under a lease agreement
or by a concession contract in which Odyssey shares the revenue on an agreed
upon basis. Under certain agreements, Odyssey supplies all personnel and
equipment. The theme park business of Odyssey is highly seasonal.
Approximately 50% of its volume occurs during the summer months when children
are not in school and families take vacations in greater numbers.
The Company, through its subsidiary Aviation Mobility, Inc. (Aviation),
provides manual wheelchairs and aisle chairs to the airline industry for use
in airline terminals to transport the handicapped and elderly throughout the
airport facilities. The products are provided to the airlines on a lease
basis. The Company currently provides products to Continental Airlines, Delta
Airlines and USAir.
EQUIVEST INC.
- -------------
On March 24, 1993, the stockholders of Medical Resource and EquiVest Inc.
("EquiVest") approved the merger of EquiVest into a wholly owned subsidiary of
Medical Resource, which then changed its name to EquiVest Inc. The then
existing shareholders of EquiVest received 3,703,227 shares of Medical
Resource stock.
At the time of the merger, EquiVest was a REIT that owned and managed real
estate properties. Medical Resource has sold and will continue to liquidate
the acquired real estate and use the proceeds for acquisitions and to expand
its existing operations.
As of September 30, 1995, EquiVest owned three retail shopping centers located
in Georgia. The aggregate value of the three centers in accordance with
generally accepted accounting principles was $3,158,000.
10
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
At September 30, 1995 current assets exceeded current liabilities by
$12,201,000. During 1995 the Company continued its program of selling its
non-strategic assets and using the proceeds to acquire additional businesses
and invest in existing operations.
In January 1995 the Company sold "The Fountainview", a retirement center in
West Palm Beach, Florida. The net sales proceeds were approximately
$18,000,000. The Company used approximately $9,000,000 of the proceeds to
repay the mortgage. The balance was used to increase working capital.
Also, in January 1995, the Company used approximately $5,000,000 of its cash
to payoff short-term bank debt.
In May 1995, EquiVest Inc. sold a shopping center in Florida for $750,000.
The proceeds included $600,000 in cash and a mortgage note for $150,000. The
note is due May 24, 2000 and bears interest in rates varying from 8 1/4 to
12 1/4%.
In June 1995 the Company sold it's economic interest in a legal claim with
respect to Wespac Investors Trust III. The Company received proceeds of
$1,085,000. The Company utilized the proceeds to redeem it's outstanding
Series "A" preferred stock for $1,085,000. The preferred stock had a dividend
rate of 12%.
As part of a larger transaction that occurred in 1992, the Company received
the rights to receive interest on certain escrow funds in the year 2028. At
the time of the transaction, for accounting purposes, the Company placed no
value on that right. In August 1995 the Company sold it's rights to the
future interest for $1,138,000 in cash.
The board of directors of the Company has authorized management to re-purchase
up to 1,500,000 shares of the Company's common stock at such prices and times
as management deems appropriate. During the first two quarters of 1995, the
Company has purchased 1,051,000 and 111,000 shares respectively of its common
stock. In October 1995 the Company purchased an additional 60,000 shares of
its common stock.
Odyssey, on a lease or concession basis provides ECVs, wheelchairs and
children's strollers to amusement parks, zoos, and other attractions where
these products are used by the public. In addition, Aviation leases and
maintains wheelchairs for the airline industry for use in airports. Odyssey
and Aviation acquire their products either by producing them or purchasing
them from third parties. These subsidiaries currently have a sufficient
inventory of equipment to service their existing contracts. The Company
anticipates any capital expenditures will be funded by a combination of
internal working capital and credit extended by suppliers.
The Company is embarking on it's plan to build and operate assisted living
facilities. If necessary, the Company could fulfill it's existing commitments
through the use of existing capital; however, the Company anticipates it will
finance the facilities. The Company is currently negotiating with a number of
potential lenders.
11
<PAGE>
RESULTS OF OPERATIONS
- ---------------------
Three and nine month period ended September 30, 1995 compared to three and
nine month period ended September 30, 1994.
Net earnings for the three and nine month period ended September 30, 1995 were
$733,000 and $4,190,000 respectively as compared to $355,000 and $1,957,000
respectively.
Mobility Products
- -----------------
Revenue from Odyssey and Aviation were $772,000 and $1,659,000 for the three
and nine months ended September 30, 1995 as compared to $727,000 and
$1,645,000 for the three and nine months ended September 30, 1994. Expenses
associated with Odyssey and Aviation were $443,000 and $1,275,000 for the
three and nine months ended September 30, 1995 as compared to $385,000 and
$1,204,000 for the three and nine months ended September 30, 1994. During the
first quarter of 1994 the Company was selling ECV's through the use of
distributors. Sales for the three and nine months ended September 30, 1994
were $23,000 and $157,000 and cost of sales were $68,000 and $248,000 for the
three and nine months ended September 30, 1994.
The Company's theme park operation is highly seasonal. The substantial
portion of the Company's revenue occurs in the warm weather months when
children are no longer in school and families take vacation. Revenue is
comparable for the three and nine month periods ended September 30, 1995 and
1994. The increase in expenses between 1995 and 1994 is due to an increase in
insurance costs.
Long Term Care Facilities
- -------------------------
The Company sold "The Fountainview" on January 28, 1995 and recorded a gain of
$5,149,000. During the month of January "The Fountainview" generated revenue
of $552,000 and operating expenses of $318,000. For the three and nine months
ended September 30, 1994 the Company owned both The Fountainview and Rivermont
Retirement Center, a facility which was sold in December 1994. The revenue
and expenses reflected in long term care for 1994 reflect the operations of
both The Fountainview and Rivermont for the entire three and nine month
periods.
Real Estate Operations
- ----------------------
Revenue from real estate operations were $149,000 and $521,000 for the three
and nine months ended September 30, 1995 as compared to $245,000 and
$1,844,000 for the comparable periods in 1994. Costs of operating these
properties were $83,000 and $270,000 for the three and nine months ended
September 30, 1995 as compared to $149,000 and $1,404,000 for the comparable
periods in the prior year. Real estate operations reflect the revenue and
expenses from the EquiVest properties. When the Company acquired EquiVest, it
was the stated intention to sell the acquired assets. The reduced level of
revenue and expenses for EquiVest reflects the ongoing sale of those
properties.
12
<PAGE>
GAIN ON SALE OF ASSETS
- ----------------------
Gain on sales of assets were $1,138,000 and $7,043,000 for the three and nine
months ended September 30, 1995 as compared to $850,000 and $3,749,000 for
comparable periods in 1994.
As part of a larger transaction that occurred in 1992 the Company received the
rights to receive interest on certain escrow funds in the year 2028. At the
time of the transaction, for accounting purposes, the Company placed no value
on that right. In August 1995 the Company sold it's rights to the future
interest for over $1,138,000 in cash.
In June 1995 the Company sold it's economic interest in a legal claim with
respect to Wespac Investors Trust III. The sales price was $1,085,000 and the
Company recorded a gain of $654,000. Separately, the Company acquired in a
private transaction 49% of the outstanding common stock of Wespac Investors
Trust III. The Company immediately sold it's economic interest in that stock
at no gain or loss.
In April 1995 EquiVest sold a shopping center in Florida for $750,000 and
reported a gain of $102,000.
During January 1995 the Company sold the Fountainview and recorded a gain of
$5,149,000.
General and Administrative Expenses
- -----------------------------------
General and administrative expenses were $788,000 and $2,371,000 for the three
and nine months ended September 30, 1995 as compared to $1,030,000 and
$2,916,000 for the comparable periods in 1994. The change is due principally
to the reduction of expenses related to the operations which the Company
disposed of.
Interest Income and Expense
- ---------------------------
Interest and dividend income were $383,000 and $966,000 for the three and nine
month periods ended September 30, 1995 as compared to $154,000 and $374,000
for the comparable periods in 1994. Interest expense was $29,000 and $179,000
for the three and nine months ended September 30, 1995 as compared to $677,000
and $2,290,000 for comparable periods in 1994.
Throughout 1994 and the nine months ended September 30, 1995 the Company
disposed of assets not essential to its long range healthcare strategy. The
proceeds from those sales were used to reduce debt and increase working
capital. The increase in interest income is the result of having more working
capital to invest. The decrease in interest expense is due to the reduction
in debt due both to the payoff of mortgages when real estate assets were sold
and the reduction of corporate debt when the proceeds from the sale of assets
were used to pay off that debt.
13
<PAGE>
Discontinued Operations
- -----------------------
In 1994 management concluded that operations of skilled medical care
facilities such as nursing homes and eating disorder clinics were not in the
best interest of the Company. During 1994 the Company sold all operations
associated with those businesses. The earnings from discontinued operations
for 1994 of $81,000 and $135,000 for the three and nine months ended September
30, 1994 represents the earnings from operations net of income taxes for those
businesses for the three and nine month periods ended September 30, 1994.
14
<PAGE>
PART II. OTHER INFORMATION
ITEM 6. Exhibits and Reports on Form 8-K
--------------------------------
There were no Exhibits and reports on Form 8-K filed by the Company during
the quarter ended September 30, 1995.
15
<PAGE>
MEDICAL RESOURCE COMPANIES OF AMERICA
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
registrant has duly caused this report to be signed on its behalf by
undersigned, thereunto duly authorized.
MEDICAL RESOURCE COMPANIES OF AMERICA
Date: October 27, 1995 By: Gene S. Bertcher
--------------------------
Executive Vice President
Chief Financial Officer
16
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FORM
10QSB CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 30, 1995 AND THE CONSOLIDATED
STATEMENT OF EARNINGS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 1995 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 10,567
<SECURITIES> 0
<RECEIVABLES> 2,265
<ALLOWANCES> 191
<INVENTORY> 342
<CURRENT-ASSETS> 14,364
<PP&E> 3,288
<DEPRECIATION> 1,317
<TOTAL-ASSETS> 30,176
<CURRENT-LIABILITIES> 2,163
<BONDS> 904
<COMMON> 188
0
3
<OTHER-SE> 23,835
<TOTAL-LIABILITY-AND-EQUITY> 30,176
<SALES> 0
<TOTAL-REVENUES> 10,755
<CGS> 0
<TOTAL-COSTS> 1,863
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 179
<INCOME-PRETAX> 6,342
<INCOME-TAX> 2,152
<INCOME-CONTINUING> 4,190
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,190
<EPS-PRIMARY> .23
<EPS-DILUTED> 0
</TABLE>
