<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1999
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 0-25283
CORINTHIAN COLLEGES, INC.
(Exact name of registrant as specified in its charter)
Delaware 33-0717312
(State or other jurisdiction of (I.R.S. Employer
Incorporation or organization) Identification No.)
6 Hutton Centre Drive, Suite 400, Santa Ana, California
(Address of principal executive offices)
92707
(Zip Code)
(714) 427-3000
(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 ____
---
At November 10, 1999, 10,345,623 shares of Common Stock and Nonvoting Common
Stock of the Registrant were outstanding.
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CORINTHIAN COLLEGES, INC. AND SUBSIDIARIES
INDEX
<TABLE>
<CAPTION>
PART I - FINANCIAL INFORMATION PAGE NO.
- ------------------------------ --------
<S> <C>
Item 1. Financial Statements
Condensed Consolidated Balance Sheets at
June 30, 1999 and September 30, 1999............................. 3
Condensed Consolidated Statements of Operations for the
three months ended September 30, 1998 and 1999................... 4
Condensed Consolidated Statements of Cash Flows for the
three months ended September 30, 1998 and 1999................... 5
Notes to Condensed Consolidated Financial Statements............. 6
Item 2. Management's Discussion and Analysis of Financial................ 7
Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosure about Market Risk........ 10
PART II - OTHER INFORMATION
- ---------------------------
Item 6. Exhibits......................................................... 10
SIGNATURES.......................................................................... 11
- ----------
</TABLE>
2
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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
CORINTHIAN COLLEGES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
<TABLE>
<CAPTION>
June 30, September 30,
1999 1999
---------- -------------
(Unaudited)
<S> <C> <C>
ASSETS
-----------------------------------------------------------------------------
CURRENT ASSETS:
Cash and cash equivalents...................................................... $ 1,787 $ 3,947
Restricted cash................................................................ 10 10
Marketable investments......................................................... 14,501 13,125
Accounts receivable, net of allowance for doubtful accounts of
$3,258 and $3,430 at June 30, 1999 and September 30, 1999,
respectively .............................................................. 11,385 15,711
Student notes receivable, net of allowance for doubtful accounts of
$463 and $380 at June 30, 1999 and September 30, 1999, respectively......... 1,959 1,366
Deferred income taxes.......................................................... 1,901 1,960
Prepaid expenses and other current assets...................................... 4,037 4,208
---------- -------------
Total current assets........................................................ 35,580 40,327
PROPERTY AND EQUIPMENT, net......................................................... 10,981 10,844
OTHER ASSETS:
Intangibles, net of accumulated amortization of $3,110 and $3,383 at June 30,
1999 and September 30, 1999, respectively..................................... 21,218 20,945
Student notes receivable, net of allowance for doubtful accounts of
$1,435 and $1,167 at June 30, 1999 and September 30, 1999, respectively....... 5,175 4,806
Deposits and other assets...................................................... 903 1,004
---------- -------------
TOTAL ASSETS............................................................... $ 73,857 $ 77,926
========== =============
LIABILITIES AND STOCKHOLDERS' EQUITY
-----------------------------------------------------------------------------
CURRENT LIABILITIES:
Accounts payable............................................................... $ 4,828 $ 4,517
Accrued compensation and related liabilities................................... 5,749 5,005
Accrued expenses............................................................... 618 929
Accrued interest............................................................... 34 32
Income tax payable............................................................. 1,848 2,181
Prepaid tuition................................................................ 3,257 5,254
Current portion of long-term debt.............................................. 138 139
---------- -------------
Total current liabilities.................................................. 16,472 18,057
---------- -------------
LONG-TERM DEBT, net of current portion.............................................. 3,396 3,361
---------- -------------
OTHER LONG-TERM LIABILITIES......................................................... - 1
---------- -------------
DEFERRED INCOME TAXES............................................................... 453 608
---------- -------------
STOCKHOLDERS' EQUITY:
Common Stock, $0.0001 par value:
Common Stock, 40,000 shares authorized, 9,169 shares
issued and outstanding at June 30, 1999 and September 30, 1999,
respectively.............................................................. 1 1
Nonvoting Common Stock, 2,500 shares authorized, 1,177 shares issued
and outstanding at June 30, 1999 and September 30, 1999 respectively..... - -
Additional paid-in capital.................................................. 49,609 49,609
Unrealized loss on marketable investments................................... - (17)
Retained earnings........................................................... 3,926 6,306
---------- -------------
Total stockholders' equity............................................... 53,536 55,899
---------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY............................... $ 73,857 $ 77,926
========== =============
</TABLE>
See accompanying notes.
3
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CORINTHIAN COLLEGES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands except per share data)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
September 30,
---------------------------------
1998 1999
----------------- --------------
<S> <C> <C>
NET REVENUE.............................................. $30,296 $38,644
------- -------
OPERATING EXPENSES:
Educational services................................ 17,978 21,561
General and administrative.......................... 3,289 3,875
Marketing and advertising........................... 7,636 9,479
------- -------
Total operating expenses........................ 28,903 34,915
------- -------
Income from operations.......................... 1,393 3,729
INTEREST EXPENSE, (INCOME), net.......................... 903 (374)
------- -------
Income before provision for income taxes........ 490 4,103
PROVISION FOR INCOME TAXES............................... 195 1,724
------- -------
NET INCOME............................................... $ 295 $ 2,379
======= =======
INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS:
Net income.......................................... $ 295 $ 2,379
Less preferred stock dividends...................... (132) -
------- -------
Net income attributable to common stockholders...... $ 163 $ 2,379
======= =======
INCOME (PER SHARE) ATTRIBUTABLE TO COMMON STOCKHOLDERS:
Basic............................................... $ 0.03 $ 0.23
======= =======
Diluted............................................. $ 0.02 $ 0.23
======= =======
Weighted average number of common shares outstanding:
Basic............................................... 5,236 10,346
======= =======
Diluted............................................. 7,327 10,397
======= =======
</TABLE>
See accompanying notes.
4
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CORINTHIAN COLLEGES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
--------------------------
September 30,
--------------------------
1998 1999
------- -------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income................................................................... $ 295 $ 2,379
Adjustments to reconcile net income to net cash
provided by (used in) operating activities--
Depreciation and amortization............................................. 821 901
Deferred income taxes..................................................... - 96
Changes in assets and liabilities:
Accounts receivable..................................................... (1,250) (4,326)
Student notes receivable................................................ (42) 962
Prepaid expenses and other assets....................................... (1,508) (272)
Accounts payable........................................................ 404 (311)
Accrued expenses........................................................ 125 (435)
Income tax payable...................................................... (910) 333
Prepaid tuition......................................................... 1,424 1,997
------- -------
Net cash provided by (used in) operating activities....................... (641) 1,324
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Change in marketable investments, net....................................... - 1,376
Capital expenditures........................................................ (716) (489)
Unrealized loss on marketable investments................................... - (17)
------- -------
Net cash provided by (used in) investing activities....................... (716) 870
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under long-term debt............................................. 1,200 -
Principal repayments on long-term debt...................................... (2,032) (34)
------- -------
Net cash used in financing activities..................................... (832) (34)
------- -------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS........................... (2,189) 2,160
CASH AND CASH EQUIVALENTS, beginning of period................................. 2,402 1,787
------- -------
CASH AND CASH EQUIVALENTS, end of period....................................... $ 213 $ 3,947
======= =======
</TABLE>
See accompanying notes.
5
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CORINTHIAN COLLEGES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1 - The Company and Basis of Presentation
Corinthian Colleges, Inc. (the "Company") is in the business of
operating degree and non-degree granting private, for-profit post-secondary
schools devoted to career program training primarily in the medical, technical
and business fields.
The accompanying unaudited consolidated financial statements have been
prepared on the same basis as the annual consolidated financial statements and,
in the opinion of management, reflect all adjustments, which include only normal
recurring adjustments, necessary to present fairly the financial condition and
results of operation of the Company. These consolidated financial statements and
notes thereto are unaudited and should be read in conjunction with the Company's
audited financial statements included in the Company's Report on Form 10K, as
filed with the Securities and Exchange Commission (the "SEC") on September 27,
1999. The results of operations for the three months ended September 30, 1999
are not necessarily indicative of results that could be expected for the entire
fiscal year.
The consolidated financial statements as of September 30, 1999 and for
the three months then ended are consolidated and include the accounts of the
Company and its wholly-owned subsidiaries. All significant intercompany balances
and transactions have been eliminated in consolidation.
Note 2 - Marketable Investments
Statement of Financial Accounting Standards (SFAS) No. 115, "Accounting
For Certain Debt and Equity Securities" requires that all applicable investments
be classified as trading securities, available-for-sale securities or held-to-
maturity securities. The Company does not currently have any trading securities
or held-to-maturity securities.
Securities classified as available-for-sale may be sold in response to
changes in interest rates, liquidity needs and for other purposes.
Available-for-sale securities are carried at fair value and include all debt and
equity securities not classified as held-to-maturity or trading. Unrealized
holding gains and losses for available-for-sale securities are excluded from
earnings and reported, net of any income tax effect, as a separate component of
stockholders' equity. Realized gains and losses for securities classified as
available-for-sale are reported in earnings based on the adjusted cost of the
specific security sold.
Note 3 - Weighted Average Number of Common Shares Outstanding
The table below indicates the weighted average number of common share
calculations used in computing basic and diluted net income per common share
utilizing the treasury stock method (in thousands):
<TABLE>
<CAPTION>
Three Months Ended
September 30,
1998 1999
------- -------
<S> <C> <C>
Basic common shares outstanding...................... 5,236 10,346
Effects of dilutive securities:
Warrants.......................................... 968 -
Non-vested executive Common Stock................. 276 -
Non-vested executive Nonvoting Common Stock....... 827 -
Stock options..................................... 20 51
------- -------
Diluted common shares outstanding:................... 7,327 10,397
======= =======
</TABLE>
6
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Note 4 - Post Retirement Benefit Obligation
The Company has elected to provide certain postretirement benefits to
certain key employees. Accordingly, the Company has adopted SFAS No. 106
"Accounting For Postretirement Benefits Other Than Pensions". The adoption of
SFAS No. 106 did not have a material effect on the Company's consolidated
financial position or results of operations.
Note 5 - Comprehensive Income
The Company was required to adopt SFAS No. 130 "Reporting Comprehensive
Income." The adoption of this pronouncement did not have a material impact on
the Company's presentation of financial position or results of operations.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
This Quarterly Report on Form 10-Q contains statements that may
constitute "forward-looking statements" as defined by the U.S. Private
Securities Litigation Reform Act of 1995. Such forward-looking statements can be
identified by the use of forward-looking terminology such as "believes,"
"estimates," "anticipates," "continues," "contemplates," "expects," "may,"
"will," "could," "should" or "would," or the negatives thereof. Those statements
are based on the intent, belief or expectation of the Company as of the date of
this Quarterly Report. Any such forward-looking statements are not guarantees of
future performance and may involve risks and uncertainties that are outside the
control of the Company. Results may differ materially from the forward-looking
statements contained herein as a result of changes in governmental regulations,
including those governing student financial aid, the effect of competitive
pressures on the Company's tuition pricing, and other factors, including those
discussed under the heading entitled "Additional Risks Related to the Business"
in the Company's Annual Report on Form 10K (File No. 0-25283) and in the other
documents periodically filed by the Company with the Securities and Exchange
Commission. The Company expressly disclaims any obligation to release publicly
any updates or revisions to any forward-looking statement contained herein to
reflect any change in the Company's expectations with regard thereto or any
change in events, conditions or circumstances on which any such statement is
based. The following discussion of the Company's results of operations and
financial condition should be read in conjunction with the interim unaudited
condensed financial statements of the Company and the notes thereto included
herein and in conjunction with the information contained in the aforementioned
Report on Form 10K.
Results of Operations
Three Months Ended September 30, 1999 Compared to Three Months Ended September
30, 1998
Net revenues increased $8.3 million, or 27.6%, from $30.3 million in
the first quarter of fiscal 1999 to $38.6 million in the first quarter of fiscal
2000, due primarily to a 14.4% increase in the average student population during
the quarter and a 10.5% increase in the average tuition rate per student. At
September 30, 1999, the total student population was 17,291, compared with
15,034 at September 30, 1998.
Educational services expense increased $3.6 million, or 19.9%, from
$18.0 million in the first quarter of fiscal 1999 to $21.6 million in the first
quarter of fiscal 2000, due primarily to the increase in student population,
wage increases for employees, higher bad debt expense resulting from higher
revenue, cost of two new locations opened in third quarter of fiscal 1999, and
higher rent from certain school relocations to larger upgraded facilities and
annual lease escalations. As a percentage of net revenue, educational services
expense decreased from 59.3% to 55.8%.
General and administrative expense increased $0.6 million, or 17.8%,
from $3.3 million in the first quarter of fiscal 1999 to $3.9 million in the
first quarter of fiscal 2000, primarily as a result of (i) additional
headquarters staff to support operations, (ii) wage increases for employees, and
(iii) increased
7
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performance bonus accrual. As a percentage of net revenue, general and
administrative expense decreased from 10.9% to 10.0%.
Marketing and advertising expense increased $1.8 million, or 24.1%,
from $7.6 million in the first quarter of fiscal 1999 to $9.5 million in the
first quarter of fiscal 2000, primarily as a result of increased advertising
expenditures due both to an increase in the quantity of advertisements and
general cost inflation for advertising products and increased staff costs
resulting from wage increases and additional high school admissions
representatives. As a percentage of net revenue, marketing and advertising
expense decreased from 25.2% to 24.5%.
Net interest income was $0.4 million in the first quarter of fiscal
2000 versus net interest expense of $0.9 million in the first quarter of fiscal
1999, or an improvement of $1.3 million, due primarily to the repayment of debt
with a portion of the proceeds from the Company's initial public offering in
February 1999 and interest income from short-term investments.
The Company's effective income tax rate increased from 39.8% in the
first quarter of fiscal 1999 to 42.0% in the first quarter of fiscal 2000 due to
timing impacts.
Net income increased $2.1 million, or 706.4%, from $0.3 million in the
first quarter of fiscal 1999 to $2.4 million in the first quarter of fiscal
2000, due primarily to the factors discussed above.
Tuition Price Increases
The 10.5% increase in the average tuition rate per student for the
quarter ended September 30, 1999, resulted from a combination of (i) tuition
price increases averaging approximately 7.0%, (ii) an increase in the percentage
of students in higher cost programs, and (iii) the effect of graduation and
attrition of students in the degree granting colleges that had fixed tuition
contracts significantly below the prevailing rate being charged new students.
Under prior ownership, students in these colleges were guaranteed a fixed
tuition price for the duration of their programs. Thus, any subsequent tuition
price increases applied only to new students. Subsequent to the Company's
acquisition of these colleges, the pricing mechanism has been changed so that
tuition increases now affect both new students and continuing students. However,
the Company honored the fixed price commitment to those students already in
school when the Company acquired the colleges. The result is a greater increase
in the average tuition rate per student than the actual period to period tuition
price increase because of the period to period mix impact of new to
"grandfathered" students. The Company expects that the majority of the remaining
"grandfathered" students will graduate or discontinue by the end of fiscal 2000.
After that time, the Company expects period to period increases in the average
tuition rate per student to more closely track the actual tuition price
increases implemented period to period. Accordingly, the average tuition rate
increases discussed herein are not necessarily indicative of average rate
increases that may occur in the future.
Seasonality and Other Factors Affecting Quarterly Results
The Company's revenues normally fluctuate as a result of seasonal
variations in its business, principally in its total student population. Student
population varies as a result of new student enrollments and student attrition.
Historically, the Company's colleges have had lower student populations in the
first fiscal quarter than in the remainder of the year. The Company's expenses,
however, do not vary as significantly as student population and revenue. The
Company expects quarterly fluctuations in operating results to continue as a
result of seasonal enrollment patterns. Such patterns may change, however, as a
result of acquisitions, new school openings, new program introductions and
increased high school enrollments. The operating results for any quarter are not
necessarily indicative of the results that could be expected for the full fiscal
year or for any future period.
8
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Liquidity and Capital Resources
Cash provided by operating activities totaled $1.3 million in the first
quarter of fiscal 2000 compared to $0.6 million used in operating activities in
the same period of fiscal 1999. The Company had $22.3 million of working capital
as of September 30, 1999 compared to $19.1 million of working capital as of June
30, 1999. The increase in working capital was due primarily to favorable
operating results during the period.
Capital expenditures decreased from $0.7 million in the quarter ended
September 30, 1998 to $0.5 million in the same period in 1999. The decrease was
due to the timing of capital expenditures in fiscal 1999 for the upgrading of
school equipment and facilities and purchases of additional equipment to
accommodate the increasing student population. Capital expenditures for fiscal
2000 are expected to increase as the student population increases and the
Company continues to upgrade and expand current facilities and equipment and add
new campuses.
The Company believes that its current working capital and expected
cash flow from operations, supplemented from time to time by borrowings from the
revolving credit facility with Union Bank of California, will provide adequate
funds for ongoing operations, planned routine capital expenditures, planned
expansion to new locations and debt service during the term of the revolving
credit agreement.
The Company leases all of its facilities except five. The Company
expects that future commitments on existing leases will be paid from cash flow
from operations.
Year 2000 Compliance
Introduction. In 1997, the Company began the process of identifying
necessary changes to its computer programs and hardware and assessing the
progress of its significant vendors in their remediation efforts to address the
Year 2000 computer problem. The discussion below details the Company's efforts
to ensure Year 2000 compliance.
State of Readiness. The Company identified and evaluated the readiness
of its internal and third party information technology and non-information
technology systems which, if not Year 2000 compliant, could have a direct major
impact to the Company. This evaluation identified the following initial areas of
concern: (i) the Company's accounting and financial reporting system, (ii) the
Company's proprietary student database system (Schools Automation System or
"SAS"), (iii) the systems of third party vendors which process student financial
aid applications and loans for the Company, and (iv) the Department of
Education's (the "DOE's") systems for processing and disbursing student
financial aid.
The Company's accounting and financial reporting system has been
upgraded with the provider's latest release which is certified to be Year 2000
compliant. The Company's SAS system was not initially compliant and a project
plan was developed to bring this system into compliance. The remediation project
is now complete and fully tested.
The Company also assessed the state of readiness of its major servers
and shared hardware devices, and those hardware systems which were not already
Year 2000 compliant have been made so through upgrades of operating system
software.
Based on its assessment and its vendors' representations, the Company
believes that the systems of its significant third party vendors which provide
student financial aid and loan processing are already Year 2000 compliant.
The Company is highly dependent on student funding provided through
Title IV of the Higher Education Act and administered by the DOE. Processing of
student applications for this funding and actual disbursement of a significant
portion of these funds are accomplished through the DOE's computer systems.
According to the DOE, their systems have now been renovated, independently
validated and verified, and certified to be Year 2000 compliant. However, the
Company is not able to independently
9
<PAGE>
verify the DOE's assertions, and any significant problems in the DOE's systems
could result in interruption of funding for the Company's students and have a
material adverse impact on the Company, its business and results of operations.
Year 2000 Costs. The Company has completed all expected spending on its
Year 2000 remediation projects.
Risks from Year 2000 Issues. The Company believes the greatest Year
2000 compliance risk, in terms of magnitude of risk, is that the DOE's systems
experience a failure, despite its public pronouncement that its systems are now
Year 2000 compliant, and Title IV funding for the Company's students could be
interrupted for a period of time. Other than public comments provided by the
DOE, the Company is unable to predict the likelihood of this risk occurring. Any
significant interruption of this funding could have a material adverse effect on
the Company's results of operations, liquidity and financial condition. As
mentioned earlier, the Company is dependent upon DOE assertions as to the
completion of their remediation efforts. As of the date of this Quarterly
Report, the latest public pronouncement by the DOE indicated its remediation
work was completed and implemented prior to the end of March 1999.
Contingency Plans. At this time, the Company believes its systems are
materially Year 2000 compliant and is satisfied that its significant vendors are
already compliant. As such, the Company has not developed any specific
contingency plans to address an unforeseen Year 2000 computer failure. Based on
the DOE's assertion that it is Year 2000 compliant, the Company also has not
developed a contingency plan to deal with a failure of the DOE's systems because
of the Year 2000 problem.
Item 3. Quantitative and Qualitative Disclosure about Market Risk
The Company does not utilize interest rate swaps, forward or option
contracts on foreign currencies or commodities, or other types of derivative
financial instruments. The only assets or liabilities of the Company which are
subject to risks from interest rate changes are (i) the mortgage debt of the
Company in the aggregate amount of $3.5 million, (ii) notes receivable from
students for the aggregate amount of $6.2 million, and (iii) marketable
investments of $13.1 million, all at September 30, 1999. The mortgage debt of
the Company, the student notes receivable, and the marketable investments are
all at fixed interest rates. The Company does not believe it is subject to
material risks from reasonably possible near-term changes in market interest
rates.
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits:
27 Financial Data Schedule.
(b) Reports on Form 8-K:
None.
10
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CORINTHIAN COLLEGES, INC.
/s/ David G. Moore
November 10, 1999 ----------------------------------------
David G. Moore
President and Chief Executive Officer
(Principle Executive Officer)
/s/ Frank J. McCord
November 10, 1999 ----------------------------------------
Frank J. McCord
Executive Vice President and
Chief Financial Officer
(Principle Accounting Officer)
11
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEET, INCOME STATEMENTS AND STATEMENTS OF CASH FLOWS AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-START> JUL-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 3,957
<SECURITIES> 13,125
<RECEIVABLES> 26,860
<ALLOWANCES> 4,977
<INVENTORY> 0
<CURRENT-ASSETS> 40,327
<PP&E> 17,099
<DEPRECIATION> 6,255
<TOTAL-ASSETS> 77,926
<CURRENT-LIABILITIES> 18,057
<BONDS> 3,500
0
0
<COMMON> 1
<OTHER-SE> 55,898
<TOTAL-LIABILITY-AND-EQUITY> 77,926
<SALES> 0
<TOTAL-REVENUES> 38,644
<CGS> 0
<TOTAL-COSTS> 34,915
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 2,204
<INTEREST-EXPENSE> (374)
<INCOME-PRETAX> 4,103
<INCOME-TAX> 1,724
<INCOME-CONTINUING> 2,379
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,379
<EPS-BASIC> 0.23
<EPS-DILUTED> 0.23
</TABLE>
