<PAGE>
FORM 10-QSB - Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[ X ] Quarterly Report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934.
For the period ended March 31, 2000
-----------------
or
[ ] Transition Report Pursuance to Section 13 or 15(d) of the Securities
Exchange act of 1934.
For the transition period from to
Commission File Number 0-27513
----------
PRIME RATE INCOME & DIVIDEND ENTERPRISES, INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Colorado 84-1308436
------------------------------ ---------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization Identification No.)
2525 Fifteenth Street, Suite 3H, Denver, CO 80211
----------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(303) 480-5037
--------------------------------------------------
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year, if changed
since last report.)
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.
[ X ] Yes [ ] No
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a
plan confirmed by a court.
[ ] Yes [ ] No
APPLICABLE ONLY TO CORPORATE ISSUERS:
As of March 31, 2000, Registrant had 652,492 shares of common stock, $1.00
par value, outstanding.
<PAGE>
INDEX
Page
Number
Part I. Financial Information
Item I. Financial Statements
Review Report of Independent
Certified Public Accountant 2
Consolidated Balance Sheets as of
March 31, 2000 (Unaudited) and
June 30, 1999 3
Consolidated Statements of Income,
Three Months Ended March 31, 2000
and March 31, 1999 (Unaudited) 4
Consolidated Statements of Income,
Nine Months Ended March 31, 2000
and March 31, 1999 (Unaudited) 5
Consolidated Statements of Cash Flows,
Three Months Ended March 31, 2000
and March 31, 1999 (Unaudited) 6
Consolidated Statements of Cash Flows,
Nine Months Ended March 31, 2000
and March 31, 1999 (Unaudited) 7
Notes to Consolidated Financial Statements 8
Item 2. Management's Discussion and Analysis of
Financial Conditions and Results of
Operations 12
Part II. Other Information 14
1
<PAGE>
REVIEW REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT
The Board of Directors
Prime Rate Income and Dividend Enterprises, Inc.
Denver, Colorado 80211
We have reviewed the accompanying consolidated balance sheet of
Prime Rate Income and Dividend Enterprises, Inc. as of March 31,
2000, and the related consolidated statements of income and cash
flows for the three and nine months then ended, in accordance with
Statements on Standards for Accounting and Review Services issued
by the American Institute of Certified Public Accountants. All
information included in these financial statements is the
representation of the management of Prime Rate Income and Dividend
Enterprises, Inc.
A review of interim financial statements consists principally of
inquiries of Company personnel responsible for financial matters
and analytical procedures applied to financial data. It is
substantially less in scope than an audit conducted in accordance
with generally accepted auditing standards, the objective of which
is the expression of an opinion regarding the financial statements
taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications
that should be made to the accompanying financial statements in
order for them to be in conformity with generally accepted
accounting principles.
Miller and McCollom
Certified Public Accountants
7400 West 14th Avenue, Suite 10
Lakewood, CO 80215
April 6, 2000
2
<PAGE>
PRIME RATE INCOME & DIVIDEND ENTERPRISES, INC.
AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
ASSETS
March 31, June 30,
2000 1999
------------ -----------
<S> <C> <C>
Current Assets:
Cash $ 116,523 $ 445,158
Receivable, broker 57,699 -
Certificates of purchase, real estate
foreclosures - 197,247
Mortgage notes receivable, current portion 121,100 111,108
Mortgage note receivable, related party - 139,079
Sale proceeds receivable - 246,500
Investment in marketable securities 2,362,003 -
Other 16,799 26,831
--------- ---------
Total Current Assets 2,674,124 1,165,923
Real estate, net of accumulated deprec-
iation of $8,510 at March 31, 2000 and
$5,500 at June 30, 1999 542,911 234,817
Transportation equipment, net of accumulated
depreciation of $8,375 at March 31, 2000 and
$6,125 and June 30, 1999 6,625 8,875
Mortgage notes receivable, net of current
portion 957,302 795,356
----------- -----------
TOTAL ASSETS $ 4,180,962 $ 2,204,971
=========== ===========
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $ 11,347 $ 8,158
Notes payable, current portion 30,405 10,005
Income taxes payable 374,112 41,689
Deferred taxes payable, current portion 262,163 2,104
Other 20,703 24,598
----------- -----------
Total Current Liabilities 698,730 86,554
Deferred taxes payable, long term 27,595 27,595
Notes payable, net of current portion 189,770 18,872
----------- -----------
TOTAL LIABILITIES 916,095 133,021
----------- -----------
Stockholders' Equity:
Preferred stock, $10.00 par value, 1,000,000
shares authorized, none issued & outstanding - -
Common stock, $1.00 par value, 10,000,000
shares authorized, 652,492 shares issued
and outstanding at March 31, 2000 and
611,290 shares at June 30, 1999 652,492 611,290
Additional paid-in capital 1,145,838 975,408
Appreciation of marketable securities 406,759 -
Retained earnings 1,059,778 485,252
--------- ---------
TOTAL STOCKHOLDERS' EQUITY 3,264,867 2,071,950
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 4,180,962 $ 2,204,971
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
PRIME RATE INCOME & DIVIDEND ENTERPRISES, INC.
AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31, March 31,
2000 1999
--------- ---------
<S> <C> <C>
Revenue:
Consulting income $ 896,048 $ -
Rent income 1,650 5,250
Interest income 33,411 43,564
Dividend income 2,933 -
Gain on sale of stock 75,885 -
Gain on disposition of asset - 41
----------- -----------
1,009,927 48,855
----------- -----------
Operating Expenses:
Depreciation 7,810 1,125
Interest 3,528 -
Contract services 5,174 -
Auditing and accounting 848 -
Stock issued for services 71,990 -
Other - 8,975
---------- ----------
89,350 10,100
---------- ----------
Net income before provision
for income taxes 920,577 38,755
Provision for income taxes 364,288 14,908
----------- -----------
Net income $ 556,289 $ 23,847
=========== ===========
Per Share $ .85 $ .04
=========== ===========
Weighted Average Shares Outstanding 652,492 608,916
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
PRIME RATE INCOME & DIVIDEND ENTERPRISES, INC.
AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
March 31, March 31,
2000 1999
------------ --------------
<S> <C> <C>
Revenue:
Consulting income $ 896,048 $ -
Rent income 4,950 14,710
Interest income 79,982 112,889
Dividend income 2,933 -
Gain on sale of stock 75,885 -
Gain on disposition of asset (3,534) 2,800
Other income 1,139 6,400
----------- -----------
1,057,403 136,799
----------- -----------
Operating Expenses:
Depreciation 10,060 3,886
Interest 5,594 257
Contract services 6,558 -
Auditing and accounting 1,742 9,615
Directors fees 3,500 -
Stock issued for services 71,990 -
Other 9,323 19,597
----------- ----------
108,767 33,355
----------- ----------
Net income before provision
for income taxes 948,636 103,444
Provision for income taxes 374,109 37,398
----------- -----------
Net income $ 574,527 $ 66,046
=========== ===========
Per Share $ .88 $ .11
=========== ===========
Weighted Average Shares Outstanding 652,492 608,916
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
PRIME RATE INCOME & DIVIDEND ENTERPRISES, INC.
AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31, March 31,
2000 1999
----------- -------------
<S> <C> <C>
Cash Flows Operating Activities:
Net income $ 556,289 $ 23,847
Depreciation 7,810 1,125
Increase in income taxes payable 364,291 14,908
Increase in deferred income taxes payable 260,059 -
Increase in accounts payable and accrued
expenses 7,723 4,949
(Increase) in receivable, broker (57,699) -
Stock issued for services 71,990 3,500
Other 8,339 (28,014)
---------- -----------
Net Cash Provided by Operating Activities 1,218,802 20,315
---------- ----------
Cash Flows from Investing Activities:
(Investments) in marketable securities (1,955,244) -
(Investments) in certificates of purchase - (65,153)
Proceeds from redemptions of certificates
of purchase 244,206
(Investment) in equipment (4,800) -
(Investment) in property (311,105) -
(Investment) in notes receivable (306,733) (105,000)
Collection of notes receivable 3,290 5,622
Collection of notes receivable, related parties 599,313 -
Other - 123,849
---------- ----------
Net Cash Provided by (Used in) Investing
Activities (1,975,279) 203,524
----------- ----------
Cash Flows from Financing Activities:
Common stock and paid-in capital 131,504 -
Proceeds from bank notes payable 200,000 -
(Repayment of) bank notes payable (1,492) (263,742)
(Repayment of) mortgage notes payable (2,453) (1,324)
----------- -----------
Net Cash Provided by (Used in) Financing
Activities 327,559 (265,066)
----------- -----------
(Decrease) in Cash (428,918) (41,227)
Cash, Beginning of Period 545,441 74,039
----------- ----------
Cash, End of Period $ 116,523 32,812
=========== ===========
Interest Paid $ 3,528 $ 8,634
=========== ===========
Income Taxes Paid $ - $ -
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
PRIME RATE INCOME & DIVIDEND ENTERPRISES, INC.
AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
March 31, March 31,
2000 1999
--------- ---------
<S> <C> <C>
Cash Flows Operating Activities:
Net income $ 574,527 $ 66,046
Depreciation 10,060 3,886
Increase (decrease) in income taxes
payable 332,423 (4,923)
Increase in deferred income taxes payable 260,059 -
Increase in accounts payable and
accrued expenses 3,189 3,350
(Increase) in receivable, broker (57,699) -
Stock issued for services 75,490 3,500
Other 6,137 (27,362)
----------- -----------
Net Cash Provided by Operating Activities 1,204,186 44,497
----------- -----------
Cash Flows from Investing Activities:
(Investments) in marketable securities (1,955,244) -
(Investments) in certificates of purchase - (1,239,554)
Proceeds from redemptions of certificates
of purchase 197,247 971,346
(Investment) in equipment (4,800) (511)
(Investment) in property (311,105) (105,000)
(Investment) in note receivable (306,733) -
Collection of notes receivable 134,795 95,873
Collection of notes receivable, related party 139,079 -
Collection of sale proceeds receivable 246,500 -
Other - 140,755
---------- ----------
Net Cash (Used in) Investing Activities (1,860,261) (137,091)
----------- -----------
Cash Flows from Financing Activities:
Common stock and paid-in capital 136,142 -
Proceeds from bank notes payable 200,000 810,100
(Repayment of) bank notes payable (1,492) (749,628)
(Repayment of) mortgage notes payable (7,210) (5,295)
----------- -----------
Net Cash Provided by Financing Activities 327,440 55,177
---------- ----------
(Decrease) in Cash (328,635) (37,417)
Cash, Beginning of Period 445,158 70,229
----------- ----------
Cash, End of Period $ 116,523 32,812
=========== ===========
Interest Paid $ 5,594 $ 41,948
=========== ===========
Income Taxes Paid $ 32,020 $ 42,321
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
PRIME RATE INCOME & DIVIDEND ENTERPRISES, INC.
AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2000
(Unaudited)
(1) Condensed Financial Statements
- ----------------------------------
The financial statements included herein have been prepared by
Prime Rate Income & Dividend Enterprises, Inc. (Company) without
audit, pursuant to the rules and regulations of the Securities
and Exchange Commission. Certain information and footnote
disclosures normally included in the financial statements
prepared in accordance with generally accepted accounting
principles have been condensed or omitted as allowed by such
rules and regulations, and Prime Rate Income & Dividend
Enterprises, Inc. believes that the disclosures are adequate to
make the information presented not misleading. It is suggested
that these financial statements be read in conjunction with the
June 30, 1999 audited financial statements and the accompanying
notes thereto. While management believes the procedures followed
in preparing these financial statements are reasonable, the
accuracy of the amounts are in some respect's dependent upon the
facts that will exist, and procedures that will be accomplished
by Prime Rate Income & Dividend Enterprises, Inc. later in the
year.
The management of Prime Rate Income & Dividend Enterprises, Inc.
believes that the accompanying unaudited condensed financial
statements contain all adjustments (including normal recurring
adjustments) necessary to present fairly the operations and cash
flows for the periods presented.
(2) Business of the Company
- ---------------------------
The Company has during the nine month period ended March 31, 2000
expanded its business to include providing assistance to
companies in becoming publicly traded. The Company continues to
have significant investments in real estate and real estate
mortgages.
8
<PAGE>
PRIME RATE INCOME & DIVIDEND ENTERPRISES, INC.
AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2000
(Unaudited)
(3) Related Party Transactions
- ------------------------------
On March 31, 2000, the Company issued 25,622 of its restricted
common stock to its principal shareholders for various marketable
securities. The Company's common stock was recorded at $5.00 per
share, the book value per share at that date and the marketable
securities were recorded at the closing price of the securities
on that date.
On January 31, 2000, the Company's President exchanged his
interest in two loft residential/commercial condominium units in
Denver, Colorado as partial repayment of amounts owed to the
Company. The President acquired these units on January 28, 2000
and exchanged the units at his cost at $311,105 with a mortgage
assumed of approximately $200,000, resulting in a debt repayment
of $110,901.
Also on January 31, 2000, the Company's President and another
shareholder exchanged certain marketable securities for debt
repayment to the Company totaling $518,438. Of the $518,438 of
marketable securities, $40,939 were sold prior to March 31, 2000
at a gain of $16,760.
(4) Stock Issued for Services
- -----------------------------
On March 31, 2000, the Company issued 14,000 shares of its common
stock for services valued at $5.00 per share. Such services
included consulting services, management advisory services,
investment planning and accounting. In addition, 580 shares were
issued for services in January 2000 at $3.43 per share, for
accounting services. None of the shares were issued to officers
and directors of the Company. The Company intends to register
the shares through an S-8 registration.
(5) Stock Options
- -----------------
On March 31, 2000, the Company granted options to acquire 200,000
shares to its President, and 100,000 shares each to two non-
officer stockholders of the Company. The options are exercisable
at any time through June 30, 2002 at $5.00 per share. The
Company intends to register such options and the underlying
shares through an S-8 registration.
9
<PAGE>
PRIME RATE INCOME & DIVIDEND ENTERPRISES, INC.
AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2000
(Unaudited)
(6) Consulting Income
- ---------------------
During the nine month period ended March 31, 2000, the Company
earned $896,048 in consulting fee income related to providing
assistance to companies in being able to trade their stock
publicly. The Company records consulting fee income equal to the
closing trading price on the date of receipt of free trading
securities and 90% of the trading price for restricted
securities. Of the $896,048 of securities received for
consulting fees, $146,875 were sold prior to March 31, 2000 at a
gain of $59,125.
(7) Marketable Equity Securities
- --------------------------------
In accordance with the Statement of Financial Accounting
Standards number 115, investments in securities may be classified
in these categories:
a) Held-to-maturity are investments in debt securities in which
the Company has the positive intent and ability to hold the
security to maturity. These investments are reported at
amortized cost.
b) Trading securities are securities which are bought and held
principally for the purpose of selling them in the near
term. These securities are valued at market with unrealized
gains or losses recorded in operations.
c) Available for sale securities are securities not classified
as held-to-maturity or trading. These securities are valued
at market with unrealized gains or losses recorded in
stockholder's equity.
At March 31, 2000, the Company had available for sale security
investments in the following companies:
Name Exchange
------------------------------ -----------------
Pilgrim Prime Rate Trust (PPR) NY Stock Exchange
EmedSoft.com, Inc. (MED) AMEX
Odyssey Marine Exploration (OMEX) OTCBB
GoOnline Networks Corporation (GONT) OTCBB
MPEG Super Site, Inc. (MPSS) OTCBB
Kelly's Coffee Group, Inc. (KLYS) OTCBB
10
<PAGE>
PRIME RATE INCOME & DIVIDEND ENTERPRISES, INC.
AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2000
(Unaudited)
(7) Marketable Equity Securities, Continued
- -------------------------------------------
Total Total
Total Market Value Unrealized
Recorded Cost March 31, 2000 Appreciation
------------- -------------- ------------
$ 1,695,185 $ 2,362,003 $ 666,818
Provision for Deferred Income Taxes (260,059)
Unrealized appreciation, net of
deferred income taxes $ 406,759
As of March 31, 2000, there was no unrealized depreciation on
any marketable securities.
(8) Management Agreement
- ------------------------
On March 31, 2000, the Company's Board of Directors agreed to
enter into a management agreement whereby the Company's
President, through an entity owned by him would be compensated
for services in an amount equal to 25% of the Company's net
income before income taxes commencing April 1, 2000 on net income
earned after March 31, 2000. This agreement may be terminated at
any time without notice by any officer of the Company.
(9) Transient Investment Company
- --------------------------------
By reason of the fact that the Company, at March 31, 2000, temporarily
owned securities and/or cash exceeding 50% of the Company's total
assets, the Company may be deemed a transient investment company as
defined in Rule 3a-2 under the Investment Company Act of 1940.
11
<PAGE>
ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Prime Rate Income & Dividend Enterprises, Inc. (the "Company") was
organized as a Colorado corporation on May 1, 1995. The Company is
principally in the real estate ownership and rental business. The
Company also invests in mortgage notes receivable and certificates
of purchase related to real estate foreclosures. Certain statements
in the Report are forward-looking. Actual results of future events
could differ materially. The Company has not encountered any
difficulty with the year 2000 effect on any of its activities, and
does not expect any in the future.
The following discussion of the financial condition and results of
operations of the Company relates to the three (3) and nine (9)
months ended March 31, 2000 and 1999, and should be read in
conjunction with the financial statements and notes thereto included
elsewhere in this Report.
Results of Operations
- ---------------------
Revenue for the three and nine month periods ended March 31, 2000
decreased from the three and nine month periods ended March 31, 1999
as follows:
1999 2000 Increase
-------- ----------- ---------
Three Months Ended March 31, $ 48,855 $ 1,009,927 $ 961,072
Nine Months Ended March 31, $136,799 $ 1,057,403 $ 920,604
Revenue increased principally due to consulting fees received as
more fully described in Note 6 to the financial statements.
Operating expenses were $10,100 during the three month period ended
March 31, 1999 as compared to $89,350 during the three month period
ended March 31, 2000. Operating expenses were $33,355 during the
nine month period ended March 31, 1999 as compared to $108,767
during the nine month period ended March 31, 2000. Operating
expenses increased principally due to the issuance of common stock
for services.
Net income after provision for income taxes amounted to $556,289
during the three month period ended March 31, 2000 as compared to
$23,847 during the three month period ended March 31, 1999, an
increase of $532,442. Net income after provision for income taxes
amounted to $574,527 during the nine month period ended March 31,
2000 as compared to $66,046 during the nine month period ended March
31, 1999, an increase of $508,481.
12
<PAGE>
Liquidity and Capital Resources
- -------------------------------
Working capital was $1,975,394 at March 31, 2000 as compared to
$1,079,369 at June 30, 1999. The Company's stockholders' equity was
$3,264,867 at March 31, 2000 as compared to $2,071,950 at June 30,
1999. The increase in stockholders' equity related principally to
the net income recognized for the nine months ended March 31, 2000
and the unrealized appreciation of marketable equity securities.
The Company has made no commitments that would require any material
increase in capital resources. The Company's financial condition
has not been affected by the modest inflation of the recent past.
The Company believes that future inflation, if any, would not
materially affect the results of operations. Also the values and
rental rates on the Company's real estate could be affected by
future inflation, in any.
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 2. Changes in Securities
None.
Item 3. Defaults upon Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K
None.
EX-27 Financial Data Schedule
<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, thereunto duly authorized.
(Registrant) PRIME RATE INCOME & DIVIDEND ENTERPRISES, INC.
BY(Signature) /s/Michael L. Schumacher
(Date) April 14, 2000
(Name and Title Michael L. Schumacher, Chief Executive
Officer and Principal Accounting Officer
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
balance sheet and statements of operations found on pages 3-4 of the
Company's Form 10-Q of the fiscal quarter ended 3-31-00, and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-END> MAR-31-2000
<CASH> 116,523
<SECURITIES> 2,362,003
<RECEIVABLES> 178,799
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,674,124
<PP&E> 551,421
<DEPRECIATION> 8,510
<TOTAL-ASSETS> 4,180,962
<CURRENT-LIABILITIES> 698,730
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 4,180,962
<SALES> 0
<TOTAL-REVENUES> 1,009,927
<CGS> 0
<TOTAL-COSTS> 89,350
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,528
<INCOME-PRETAX> 920,577
<INCOME-TAX> 364,288
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 556,289
<EPS-BASIC> .85
<EPS-DILUTED> .85
</TABLE>
