UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED: MARCH 31, 2000
----------------
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE
EXCHANGE ACT
For the transition period from to
COMMISSION FILE NUMBER 000-27959
LAREDO INVESTMENT CORP.
(Exact name of small business issuer as specified in its charter)
NEVADA 77-0517964
- -------------------------------------------------------------------------------
(State or other jurisdiction (IRS Employer
of incorporation or organization) Identification No.)
SUITE 1450, 1075 WEST GEORGIA STREET, VANCOUVER, BC, CANADA, V6B 3C9
------------------------------------------------------------------------------
(Address of principal executive offices)
(604) 460-8440
Issuer's telephone number
(Former name, former address and former fiscal year, if changed since
last report.)
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practical date: MARCH 31, 2000 29,000,000
--------------------------
Transitional Small Business Disclosure Format (check one).
YES ; NO X
---- ---
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
INDEPENDENT ACCOUNTANT'S REPORT
Laredo Investment Corp.
We have reviewed the accompanying balance sheets of Laredo Investment
Corp. as of March 31, 2000, and the related statements of operations, and cash
flows for the three month period then ended. These financial statements are the
responsibility of the Company's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures to
financial data and making inquiries of persons responsible for financial and
accounting matters. 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 statement 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 for them to be in
conformity with generally accepted accounting principles.
Respectfully submitted
/S/ ROBISON, HILL & CO.
Certified Public Accountants
Salt Lake City, Utah
May 12, 2000
<PAGE>
LAREDO INVESTMENT CORP.
BALANCE SHEETS
March 31, December 31,
2000 1999
--------- ---------
ASSETS
Current Assets:
Cash and cash equivalents .................. $ 126,497 $ --
Receivables ................................ 278,362 192,339
Inventory .................................. 100,087 140,020
Prepaid expense ............................ 857 857
--------- ---------
Total Current Assets .................. 505,803 333,216
--------- ---------
Property and equipment:
Manufacturing Equipment .................... 387,089 206,998
Office Equipment ........................... 14,526 10,934
Furniture & Fixtures ....................... 1,245 1,245
Vehicles ................................... 5,026 5,026
Leasehold improvements ..................... 3,521 3,521
--------- ---------
411,407 227,724
Less accumulated depreciation .............. (37,797) (28,924)
--------- ---------
373,610 198,800
--------- ---------
Total Assets .......................... $ 879,413 $ 532,016
========= =========
<PAGE>
LAREDO INVESTMENT CORP.
BALANCE SHEETS
(Continued)
March 31, December 31,
2000 1999
--------- ---------
LIABILITIES
Current Liabilities:
Accounts payable and accrued liabilities ......... $ 191,788 $ 267,393
Short-term notes payable ......................... 415,401 33,346
Related party loans .............................. 65,170 63,481
Current portion long-term debt ................... 20,036 20,479
--------- ---------
Total Current Liabilities ................... 692,395 384,699
--------- ---------
Long-term debt ................................... 114,658 120,600
--------- ---------
Total Liabilities ........................... 807,053 505,299
--------- ---------
STOCKHOLDERS EQUITY
Common Stock - $0.001 par value .................
100,000,000 shares authorized .................
15,000,000 issued and outstanding ............. 15,000 15,000
Common Stock to be issued ........................ 14,000 14,000
Additional paid-in capital ....................... 4,711 (29,000)
Currency translation adjustment .................. (166) --
Retained deficit ................................. 38,815 26,717
--------- ---------
Total Stockholders' Equity .................. 72,360 26,717
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ....... $ 879,413 $ 532,016
========= =========
See accompanying notes and accountants' report.
<PAGE>
LAREDO INVESTMENT CORP.
STATEMENTS OF OPERATIONS
For the three months ended
March 31,
-----------------------------
2000 1999
------------ ------------
Revenues ..................................... $ 571,139 $ 458,419
Cost of Revenues ............................. 404,366 334,949
------------ ------------
Gross Margin ................................. 166,773 123,470
Expenses
Selling & Marketing ....................... 11,303 28
General & Administrative .................. 95,650 85,935
------------ ------------
106,953 85,963
------------ ------------
Net Loss from Operations ..................... 59,820 37,507
------------ ------------
Other Income (Expense)
Interest, Net ............................. (9,643) (4,132)
Currency Exchange, Net .................... -- --
------------ ------------
Net Loss Before Income Taxes ................. 50,177 33,375
Income Tax Expense ........................... (7,527) (5,006)
------------ ------------
Net Loss To Common Stockholders .............. $ 42,650 $ 28,369
============ ============
Basic and Diluted Loss Per Common Share ...... $ -- $ --
============ ============
WEIGHTED AVERAGE NUMBER OF COMMON SHARES ..... 16,092,308 25,000,000
============ ============
See accompanying notes and accountants' report.
<PAGE>
LAREDO INVESTMENT CORP.
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
For the three months ended
March 31,
----------------------
2000 1999
--------- ---------
Cash Flows From Operating Activities
<S> <C> <C>
Net loss for the period .............................. $ 42,650 $ 28,369
Adjustments to reconcile net loss to net cash
Provided by operating activities
Depreciation and Amortization ...................... 8,873 6,136
Decrease (Increase) in Receivables ................. (86,023) (91,105)
Decrease (Increase) in inventory ................... 39,933 97,934
Decrease (Increase) in prepaid expense ............. -- 795
Decrease in accounts payable and accrued liabilities (75,605) (34,803)
--------- ---------
Net Cash Provided by (Used in) Operating Activities ..... (70,172) 7,326
--------- ---------
Cash Flows From Investing Activities
Purchase of property and equipment ................... (183,683) --
--------- ---------
Net Cash Provided by Investing Activities ............... (183,683) --
--------- ---------
Cash Flows From Financing Activities
Payments on short-term notes payable ................. (26,497) --
Proceeds from short-term notes payable ............... 414,175 --
Principle payment on long-term debt .................. (7,326) (7,326)
--------- ---------
Net Cash Provided by Financing Activities ............... 380,352 (7,326)
--------- ---------
Increase (Decrease) in Cash ............................. 126,497 --
Cash at beginning of period ............................. -- --
--------- ---------
Cash at End of Period ................................... $ 126,497 $ --
========= =========
Supplemental Disclosure of Interest and Income Taxes Paid
Interest paid during the period ...................... $ 764 $ 4,544
========= =========
Income taxes paid during the period .................. $ -- $ --
========= =========
</TABLE>
Supplemental Disclosure of Non-cash Investing
and Financing Activities: None
See accompanying notes and accountants' report.
<PAGE>
LAREDO INVESTMENT CORP.
NOTES TO FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2000
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
This summary of accounting policies for Laredo Investment Corp. ( the
"Company") is presented to assist in understanding the Company's financial
statements. The accounting policies conform to generally accepted accounting
principles and have been consistently applied in the preparation of the
financial statements.
The unaudited financial statements as of March 31, 2000 and for the
three months then ended reflect, in the opinion of management, all adjustments
(which include only normal recurring adjustments) necessary to fairly state the
financial position and results of operations for the three months. Operating
results for interim periods are not necessarily indicative of the results which
can be expected for full years.
ORGANIZATION AND BASIS OF PRESENTATION
The Company was incorporated under the laws of the State of Nevada on
December 18, 1996. The Company ceased all operating activities during the period
from December 18, 1996 to July 9, 1999 and was considered dormant. On July 9,
1999, the Company obtained a Certificate of renewal from the State of Nevada.
From July 9, 1999 to January 21, 2000, the Company was in the development stage.
On January 21, 2000, the Company entered into an Acquisition Agreement
with GFR Nutritionals, Ltd., a British Columbia corporation, (GFR), Richard
Pierce and Lucretia Schanfarber (the GFR Majority Shareholders) to acquire their
shares representing 100% of the outstanding common stock of GFR in exchange for
19,000,000 newly issued shares of the Company's restricted common stock. The
transaction has been recorded as a reverse merger.
NATURE OF BUSINESS
The Company specializes in formulating, blending, encapsulating and
packing nutritional products. The Company's operations are located in the
province of British Columbia, Canada.
CASH AND CASH EQUIVALENTS
For purposes of the statement of cash flows, the Company considers all
highly liquid debt instruments purchased with a maturity of three months or less
to be cash equivalents to the extent the funds are not being held for investment
purposes.
<PAGE>
LAREDO INVESTMENT CORP.
NOTES TO FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2000
(Continued)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
INVENTORIES
Raw materials inventory is stated at a lower of weighted average cost
and replacement value. Inventories of work in progress is stated at the lower of
weighted average cost and net realizable value.
DEPRECIATION
Fixed assets are stated at cost. Depreciation and amortization is
calculated on a straight-line basis over the estimated useful lives of the
assets as follows:
Asset Rate
- ------------------------------------------------ -----------------
Manufacturing equipment 10 years
Furniture and fixtures 5 years
Office equipment 5 years
Leasehold improvements Term of lease
Automobile 3 years
Maintenance and repairs are charged to operations; betterments are
capitalized. The cost of property sold or otherwise disposed of and the
accumulated depreciation thereon are eliminated from the property and related
accumulated depreciation accounts, and any resulting gain or loss is credited or
charged to income.
The Company has adopted the Financial Accounting Standards Board SFAS
No., 121, "Accounting for the Impairment of Long-lived Assets." SFAS No. 121
addresses the accounting for (i) impairment of long-lived assets, certain
identified intangibles and goodwill related to assets to be held and used, and
(ii) long-live lived assets and certain identifiable intangibles to be disposed
of. SFAS No. 121 requires that long-lived assets and certain identifiable
intangibles be held and used by an entity be reviewed for impairment whenever
events or changes in circumstances indicate that the carrying amount of an asset
may not be recoverable. If the sum of the expected future cash flows from the
used of the asset and its eventual disposition (undiscounted and without
interest charges) is less than the carrying amount of the asset, an impairment
loss is recognized.
<PAGE>
LAREDO INVESTMENT CORP.
NOTES TO FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2000
(Continued)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
REVENUE RECOGNITION
Revenue is recognized from sales of product at the time of shipment to
customers.
FOREIGN CURRENCY TRANSLATION
The Company's primary functional currency is the Canadian dollar.
Monetary assets and liabilities resulting from transactions with foreign
suppliers and customers are translated at year-end exchange rates while income
and expense accounts are translated at average rates in effect during the year.
Gains and losses on translation are included in income.
PERVASIVENESS OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles required management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
EARNINGS PER SHARE
The reconciliations of the numerators and denominators of the basic and
diluted earnings per share computations are as follows:
Per-Share
INCOME SHARES AMOUNT
---------- --------- ----------
(Numerator)(Denominator)
For the three months ended March 31, 2000
Basic & Diluted Earnings per Share
Net Income to common shareholders ....... $ 42,650 16,134,958 $ --
========== ========== ==========
For the three months ended March 31, 1999
Basic & Diluted Earnings per Share
Net Income to common shareholders ....... $ 28,369 25,000,000 $ --
========== ========== ==========
<PAGE>
LAREDO INVESTMENT CORP.
NOTES TO FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2000
(Continued)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
INCOME TAXES
The Company accounts for income taxes under the provisions of SFAS No.
109, "Accounting for Income Taxes." SFAS No.109 requires recognition of deferred
income tax assets and liabilities for the expected future income tax
consequences, based on enacted tax laws, of temporary differences between the
financial reporting and tax bases of assets and liabilities.
RECLASSIFICATIONS
Certain reclassifications have been made in the 1999 financial
statements to conform with the 2000 presentation.
NOTE 2 - INVENTORY
As of March 31, 2000 and December 31, 1999, Inventory consists of the
following:
2000 1999
-------- --------
Raw materials .......................... $ 92,412 $106,760
Work in process ........................ 7,675 33,260
-------- --------
Total Inventory ........................ $100,087 $140,020
======== ========
NOTE 3 - RELATED PARTY TRANSACTIONS
As of March 31, 2000, accrued management fees of GFR of approximately
$54,000 ($78,000 Canadian) are due to a major shareholder. As at March 31, 2000,
accounts payable includes approximately $84,000 ($122,000 Canadian) owing to the
Company's major shareholders.
<PAGE>
LAREDO INVESTMENT CORP.
NOTES TO FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2000
(Continued)
NOTE 4 - PROMISSORY NOTES
March 31, December 31,
2000 1999
---------- ----------
Promissory note, repayable to related parties upon
demand, including interest at 12% ................... $ 65,170 $ 63,481
Promissory note, repayable upon demand including
interest at 1% over prime (9%) ..................... 415,401 --
---------- ----------
Total .................................................. $ 480,571 $ 63,481
========== ==========
NOTE 5 - LONG-TERM DEBT
March 31, December 31,
2000 1999
---------- ----------
TDBank Small Business loan, repayable
in monthly instalments of $3,972,
including interest at 10.15%, maturing
March 15, 2004, secured by certain
manufacturing equipment of the Company ............... $ 134,694 $ 141,079
Less current portion of long-term debt ................. 20,036 20,479
---------- ----------
$ 114,658 $ 120,600
========== ==========
Principal payments due on long-term debt for each of the five years
subsequent to March 31, 2000 and thereafter are as follows:
Year ending: Amount
- --------------------------- ------------------
2000 $ 14,836
2001 21,614
2002 23,913
2003 26,456
2004 29,270
Thereafter 18,605
------------------
Total $ 134,694
==================
<PAGE>
LAREDO INVESTMENT CORP.
NOTES TO FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2000
(Continued)
NOTE 6 - ECONOMIC DEPENDENCE
During 2000, the Company sold approximately $538,000 or 94% of sales to
Prairie Naturals Inc. Future operations of the Company depend on continuation of
the manufacturing arrangement with Prairie Naturals Inc.
NOTE 7 - COMMITMENTS
The Company has entered into a lease agreement for its manufacturing
and office facilities with the Company's major shareholder and other parties.
The rental charges are approximately $41,000 ($60,000 Canadian) per year. The
lease expires December 31, 2001.
The minimum future lease payments under these leases for the next five
years are:
Year Ended Real Property
December 31,
- ------------------------- -----------------
2000 $ 41,000
2001 41,000
2002 -
2003 -
2004 -
Thereafter -
-----------------
Total minimum future lease payments $ 82,000
=================
The leases generally provides that insurance, maintenance and tax
expenses are obligations of the Company. It is expected that in the normal
course of business, leases that expire will be renewed or replaced by leases on
other properties.
NOTE 8 - STOCK SPLIT
On May 6, 1999 the Board of Directors authorized a 1,000 to 1 stock
split, changed the authorized number of shares to 100,000,000 shares and the par
value to $.001 for the Company's common stock. As a result of the split, 999,000
shares were issued. All references in the accompanying financial statements to
the number of common shares and per-share amounts for 1999 have been restated to
reflect the stock split.
<PAGE>
LAREDO INVESTMENT CORP.
NOTES TO FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2000
(Continued)
NOTE 8 - STOCK SPLIT (CONTINUED)
On November 15, 1999 the majority shareholder returned 400,000 shares
to the Company. On the same day the Company's Board of Directors authorized a 25
to 1 stock split of the remaining 600,000 shares of the Company's $.001 par
value common stock. As a result of the split, 14,400,000 shares were issued, and
Paid-In Capital was reduced by $14,400. All references in the accompanying
financial statements to the number of common shares and per-share amounts for
1999 have been restated to reflect the stock split.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
GENERAL - This discussion should be read in conjunction with Management's
Discussion and Analysis of Financial Condition and Results of Operations in the
Company's annual report on Form 10-KSB for the year ended December 31, 2000.
The Company is currently working on securing additional private label
manufacturing contracts. The key target for private label sales are wholesale
distributors of health food nutrition products. The Company is also pursuing
opportunities for direct sales to consumers through the Internet.
RESULTS OF OPERATIONS -
March 31, March 31,
2000 1999
-------- --------
Sales .............................................. $571,139 $458,419
Cost of Sales ...................................... 404,366 334,949
Gross Profit ....................................... 166,773 123,470
Gross Profit Margin ................................ 29.2% 26.9%
Selling, General & Administrative Expenses ......... 106,953 85,963
Administrative Expenses as a % of sales ............ 18.7% 18.8%
94% of first quarter 2000 sales were to Prairie Naturals Inc., a related party
wholesale distributor for which the Company manufactures private label products.
The Company has an verbal arrangement to manufacture, on an as-ordered basis,
private label products that Prairie Naturals Inc. distributes under the Prairie
Naturals Inc. name. The Company also has an exclusive written contract to
manufacture one product that Prairie Naturals Inc, distributes for a third party
private label.
Operating margins in first quarter 2000 were 29% of sales revenue compared to
27% for first quarter 1999. Cost of Sales includes the cost of raw materials
used in manufacturing, production labor costs and an applicable share of
overhead expenses. General and administrative expenses were approximately 19% of
sales in first quarter 2000 and 1999.
The Company anticipates realizing economies of scale as production volumes
increase. Selling, general and administrative expenses include advertising
expenses which will increase due to the Company's plan to expand marketing
efforts.
LIQUIDITY AND CAPITAL RESOURCES - The Company requires working capital
principally to fund its current operations for which the Company has relied on
short-term and long-term borrowings.
The Company's working capital ratio was 0.73:1 as at March 31, 2000. Finished
goods inventory balances at March 31, 2000 were minimal. Generally, the Company
has been shipping goods immediately upon completion. As business volumes
increase, finished goods inventory will be required to be kept on hand.
<PAGE>
Current liabilities include a $65,000 ($95,000 Canadian) promissory note payable
to a party related to the shareholder, which bears interest at 12% annually.
These funds are repayable on demand however, the request for repayment occurring
at this time is not expected.
Also included in current liabilities is a $415,000 note payable to third
parties, which bear interest at 1% over prime(9%). These funds are repayable on
demand however, the Company has the option to repay the amounts with options to
purchase shares of the Company's common stock or with section 144 shares.
The Company has a small business loan outstanding with a balance of
approximately $135,000 ($196,000 Canadian) as at March 31, 2000. This loan bears
interest at 10.15% over a 5 year term. Only the principal portion of this loan
that is repayable in the next fiscal year has been included in the working
capital calculations.
The Company acquired an additional $184,000 of manufacturing equipment in first
quarter 2000 and anticipates acquiring and additional $30,000 in fiscal 2000 in
order to meet demands for new private label sales. Plant renovations costing
$35,000 are also expected to be completed in fiscal 2000. These expenditures
will be financed through private placement of shares. Increased sales volumes
will also necessitate hiring additional operations, sales and administrative
personnel.
Cash flows. Operating activities used cash of approximately $70,000 for the
three months ended March 31, 2000.
Investing activities have used cash of approximately $184,000 for the three
months ended March 31, 2000. Investing activities primarily represent purchases
of manufacturing equipment and office equipment.
Financing activities provided cash of approximately $380,000 for the three
months ended March 31, 2000. Financing activities primarily represent proceeds
from short-term demand notes with interest at rates from 10% to 12%.
The Company expects future development and expansion will be financed through
cash flow from operations and other forms of financing such as the sale of
additional equity and debt securities, capital leases and other credit
facilities. There are no assurances that such financing will be available on
terms acceptable or favorable to the Company.
EFFECT OF INFLATION - The Company does not anticipate any financial impact,
whether beneficial or detrimental, as a result of inflation.
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None.
ITEM 2. CHANGES IN SECURITIES
On January 21, 2000, the Company entered into an Acquisition Agreement
with GFR Nutritionals, Ltd., a British Columbia corporation, (GFR), Richard
Pierce and Lucretia Schanfarber (the GFR Majority Shareholders) to acquire their
shares representing 100% of the outstanding common stock of GFR in exchange for
19,000,000 newly issued shares of the Company's restricted common stock.
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
The Company filed a report on Form 8-K reporting "Item 1. Changes in
Control of the registrant " on May 2, 2000.
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
LAREDO INVESTMENT CORP.
(Registrant)
DATE: MAY 15, 2000 BY: /S/ RICHARD PIERCE
-------------------- ---------------------
Richard Pierce
President, C.E.O., Director
DATE: MAY 15, 2000 BY: /S/ MARC CASAVANT
-------------------- --------------------
Marc Casavant
C.F.O.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
BALANCE SHEET OF LAREDO INVESTMENT CORP. AS OF MARCH 31, 2000 AND THE RELATED
STATEMENTS OF OPERATIONS AND CASH FLOWS FOR THE THREE MONTHS THEN ENDED AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 126
<SECURITIES> 0
<RECEIVABLES> 278
<ALLOWANCES> 0
<INVENTORY> 100
<CURRENT-ASSETS> 506
<PP&E> 411
<DEPRECIATION> 38
<TOTAL-ASSETS> 879
<CURRENT-LIABILITIES> 692
<BONDS> 0
0
0
<COMMON> 29
<OTHER-SE> 43
<TOTAL-LIABILITY-AND-EQUITY> 879
<SALES> 571
<TOTAL-REVENUES> 571
<CGS> 404
<TOTAL-COSTS> 404
<OTHER-EXPENSES> 107
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 10
<INCOME-PRETAX> 50
<INCOME-TAX> 7
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
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<NET-INCOME> 43
<EPS-BASIC> 0.00
<EPS-DILUTED> 0.00
</TABLE>
