FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1997
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 1-4684
Blessings Corporation
(Exact name of registrant as specified in its charter)
Delaware 13-5566477
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
200 Enterprise Drive, Newport News, VA 23603
(Address of principal executive offices)
(Zip Code)
757 887 2100
(Registrant's telephone number, including area code)
None
(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.
Yes x No
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Class Outstanding as of August 1, 1997
Common stock, $.71 par value 10,114,803
<PAGE>
BLESSINGS CORPORATION
INDEX
PAGE NUMBER
PART I: FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Condensed Balance Sheets
June 30, 1997 and December 31, 1996 1
Consolidated Condensed Statements of
Earnings - three and six months ended June 30, 1997 and June
30, 1996 2
Consolidated Condensed Statements of
Cash Flows - three and six months ended June 30, 1997 and June
30, 1996 3
Notes to Consolidated Condensed
Financial Statements 4
Review by Independent Certified
Public Accountants 8
Independent Accountants' Report 9
Letter in Lieu of Consent of Independent Public Accountants
10
Item 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations 11
PART II: OTHER INFORMATION
Item 4. Submission of Matters to A Vote by
Security Holders 14
Item 6. Exhibits and Reports on Form 8-K 14
<PAGE>
PART I. FINANCIAL INFORMATION
BLESSINGS CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
June 30, 1997 December 31, 1996*
---------------- -------------------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash & cash equivalents $ 5,931,900 $ 5,801,800
Accounts receivable less allowance for
doubtful accounts of $1,718,000 &
$1,541,000 20,224,600 22,832,200
Inventories 13,832,300 12,905,700
Prepaid deferred taxes 1,417,900 1,417,900
Prepaid expenses 949,300 1,723,700
------------ --------------
Total Current Assets 42,356,000 44,681,300
------------ --------------
Property, plant and equipment less
accumulated depreciation & amortization
of $41,442,900 & $36,596,200 85,700,000 80,573,600
Goodwill net of accumulated amortization
of $3,189,600 and $2,659,500 23,315,700 23,845,800
Deferred taxes 7,531,900 7,565,400
Other assets 1,473,400 1,410,600
------------ --------------
Total Assets $160,377,000 $158,076,700
============ ==============
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $ 21,287,600 $ 25,025,800
Short-term bank note 1,465,000 --
Income taxes payable 1,302,800 528,700
Current installments on long-term debt 3,386,800 3,744,300
Deferred taxes 1,085,300 1,024,200
------------ --------------
Total Current Liabilities 28,527,500 30,323,000
------------ --------------
Long-term debt 32,690,600 34,253,100
Deferred taxes on income 8,393,000 8,373,800
Deferred supplemental pension liability 2,258,800 1,950,700
Minority interest 12,999,800 11,427,700
Shareholders' Equity:
Common stock 7,252,500 7,252,500
Additional paid in capital 5,967,200 6,012,900
Translation loss (6,255,900) (6,255,900)
Retained earnings 69,547,900 65,631,200
------------ --------------
76,511,700 72,640,700
Common stock in treasury at cost (1,004,400) (892,300)
------------- --------------
Total Shareholders' Equity 75,507,300 71,748,400
------------- --------------
Total Liabilities and Shareholders'
Equity $160,377,000 $158,076,700
============= ==============
See accompanying Notes to Consolidated Condensed Financial Statements.
*The balance sheet at December 31, 1996 has been taken from audited Financial
Statements at that date, and condensed.
<PAGE>
<TABLE>
<CAPTION>
BLESSINGS CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(Unaudited)
3 Months Ended 6 Months Ended
--------------------------------------------- ---------------------------------------
June 30, 1997 June 30, 1996 June 30, 1997 June 30, 1996
-------------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
Continuing Operations:
Net sales $43,185,000 $36,253,400 $88,261,700 $75,786,700
----------- ----------- ----------- -----------
Cost of sales 30,617,400 26,355,000 62,127,700 52,692,600
Selling, general and administrative 7,968,500 6,888,900 15,494,100 13,489,200
Foreign exchange (gain) loss (53,400) 122,700 158,100 165,300
Interest & dividends - net 728,900 651,900 1,443,900 1,373,700
----------- ----------- ----------- -----------
Total costs and expenses 39,261,400 34,018,500 79,223,800 67,720,800
----------- ----------- ----------- ----------
Earnings from operations before provision for
taxes on income and minority interest 3,923,600 2,234,900 9,037,900 8,065,900
----------- ----------- ----------- ----------
Taxes on income
Current 1,568,300 617,100 3,521,000 2,745,900
Deferred (37,900) 235,900 28,100 826,200
------------ ----------- ----------- ----------
Total taxes 1,530,400 853,000 3,549,100 3,572,100
------------ ----------- ----------- ----------
Minority interest in net income of subsidiary 773,400 366,300 1,572,100 1,241,500
------------ ----------- ----------- ----------
Net earnings $ 1,619,800 $ 1,015,600 $ 3,916,700 $ 3,252,300
============ =========== ============ ============
Average number of shares of common
stock outstanding 10,114,869 10,164,637 10,120,128 10,152,196
============ =========== ============ ============
Common stock outstanding at close of period 10,118,669 10,168,504 10,118,669 10,168,504
============ =========== ============ ============
Net earnings per share $ .16 $ .10 $ .39 $ .32
=========== =========== ============ ============
Dividends per share -- $ .10 -- $ .20
=========== =========== ============ ============
See accompanying Notes to Consolidated Condensed Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
BLESSINGS CORPORATION & SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
3 Months Ended 6 Months Ended
----------------------------------- --------------------------------------
June 30, 1997 June 30, 1996 June 30, 1997 June 30, 1996
------------- -------------- ------------- -------------
Cash flows from operating activities:
<S> <C> <C> <C> <C>
Net earnings from operations $ 1,619,800 $ 1,015,600 $ 3,916,700 $ 3,252,300
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 2,636,500 2,213,700 5,281,200 4,516,400
Amortization - goodwill 265,100 265,000 530,100 530,100
Amortization - other 15,000 1,000 30,000 6,000
Minority interest in net income of con-
solidated subsidiary 773,400 366,300 1,572,100 1,241,500
Provision for losses on accounts receivable 90,000 90,000 307,500 180,000
(Gain) loss on sale of assets 131,700 (2,600) 132,700 (21,600)
Change in assets and liabilities:
(Increase) decrease in accounts receivable 1,610,700 (346,100) 2,211,000 (496,600)
(Increase) decrease in inventories 408,200 (952,600) (952,300) (2,727,100)
(Increase) decrease in prepaid expenses 367,400 (230,300) 577,800 (340,700)
Increase (decrease) in accounts payable
& accrued expenses (512,500) (2,053,000) (3,405,000) (1,351,100)
Increase (decrease) in taxes on income 56,500 (820,300) 1,265,100 493,200
Increase (decrease) in deferred taxes
on income (37,900) 72,300 28,100 628,700
(Increase) decrease in other assets (27,600) 105,300 (100,900) (27,400)
Increase (decrease) in other liabilities (466,700) (140,600) (202,100) 129,800
------------ ----------- ------------ ------------
Net cash prov. (req.) by operating activities 6,929,600 (416,300) 11,192,000 6,013,500
------------ ----------- ------------ ------------
Cash flows from investing activities:
Proceeds from disposition of fixed assets 118,800 7,200 137,000 30,900
Capital expenditures (5,284,700) (4,810,300) (10,550,000) (8,277,200)
------------ ----------- ------------ ------------
Net cash required by investing activities (5,165,900) (4,803,100) (10,413,000) (8,246,300)
------------ ----------- ------------ ------------
Cash flows from financing activities:
Increase (decrease) in short-term debt (535,000) -- 1,465,000 2,078,200
Reduction of long-term debt (995,500) (1,535,900) (1,919,900) (13,270,900)
Proceeds from issuance of long-term debt -- -- -- 20,000,000
Issuance and acquisition of treasury stock
- net (67,400) (15,700) (157,800) 414,800
Dividends paid -- (1,016,300) -- (2,028,700)
------------ ----------- ------------ ------------
Net cash prov. (req.) by financing activities (1,597,900) (2,567,900) (612,700) 7,193,400
------------ ----------- ------------ ------------
Effect of exchange rate changes on cash (8,600) (9,000) (36,200) 4,400
----------- ----------- ------------ ------------
Net incr. (decr.) in cash and cash equivalents 157,200 (7,796,300) 130,100 4,965,000
Cash and cash equivalents at beginning of period 5,774,700 16,078,200 5,801,800 3,316,900
=========== ============ ============ ============
Cash and cash equivalents at end of period $ 5,931,900 $ 8,281,900 $ 5,931,900 $ 8,281,900
=========== ============ ============ ============
</TABLE>
See accompanying Notes to Consolidated Condensed Financial Statements.
<PAGE>
BLESSINGS CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED
FINANCIAL STATEMENTS
(See Independent Accountants' Report)
1. The consolidated condensed balance sheet as of June 30, 1997, the
consolidated condensed statements of earnings for the three and six
months ended June 30, 1997 and 1996, and the consolidated condensed
statements of cash flows for the same periods then ended have been
prepared by the Company without audit. The consolidated financial
statements include Nacional de Envases, S.A. de C.V. (NEPSA), the
Company's 60% owned Mexican subsidiary. In the opinion of management,
all adjustments (consisting only of normal recurring accruals)
necessary to present fairly the financial position, results of
operations and cash flows at June 30, 1997, and for all periods
presented have been made. The Company considers all highly liquid debt
instruments purchased with a maturity of three months or less to be
cash equivalents. For accounting policies, see Notes to Consolidated
Financial Statements in the Company's Annual Report to Shareholders for
the fiscal year ended December 31, 1996.
2. The Financial Accounting Standards Board recently issued Statement of
Financial Accounting Standards No. 128 "Earnings Per Share", which is
effective for financial statements for both interim and annual periods
ending after December 15, 1997. Early adoption of the statement is not
permitted. The Company has applied this statement to the 1996 first
half and annual results and to the 1997 first half results and
determined that the adoption of this statement would not have a
material impact on the earnings per share calculations for these
periods. After adoption, all prior period earnings per share
calculations will be restated to comply with this statement.
3. In 1996 the Company translated foreign currency financial statements by
translating balance sheet accounts at the current exchange rate and
income statement accounts at the average exchange rate for the quarter.
Due to hyper-inflation in Mexico, the Company changed the functional
currency from the peso to the dollar effective in January, 1997. As a
result of this change, translation gains and losses previously recorded
in shareholders' equity are now recorded in income.
4. The results of operations for the six months ended June 30, 1997 are
not necessarily indicative of the results to be expected for the full
year.
<PAGE>
5. Inventories:
June 30, 1997 December 31, 1996
Raw Materials $ 9,189,600 $ 10,050,500
Finished Goods 4,642,700 2,855,200
------------ ------------
$ 13,832,300 $ 12,905,700
============ ============
6. Long-term debt:
June 30, 1997 December 31, 1996
Long-term debt consists
of the following:
6.55% Note due 2002 $ 10,000,000 $ 10,000,000
7.22% Note due 2008 10,000,000 10,000,000
NEPSA Credit Agreement 15,625,000 17,187,500
Mexico Bank Loans 452,400 809,900
------------ ------------
$ 36,077,400 $ 37,997,400
Less installments due
within one year 3,386,800 3,744,300
------------ ------------
Due after one year $ 32,690,600 $ 34,253,100
============ ============
For further details, see Note 6 of the Annual Report to Shareholders
for the fiscal year ended December 31, 1996.
7. Shareholders' Equity
During the six months ended June 30, 1997, shareholders' equity
increased as follows:
Net earnings $ 3,916,700
Issuance and acquisition of treasury
stock - net (157,800)
------------
Total increase in shareholders' equity $ 3,758,900
============
<PAGE>
8. Interest and Dividends - Net
3 Months Ended
--------------
June 30, 1997 June 30, 1996
------------- -------------
Interest expense $ 872,100 $ 913,200
Interest income (143,200) (250,900)
Dividend income -- (10,400)
Total interest and --------- ---------
dividends - net $ 728,900 $ 651,900
========= =========
6 Months Ended
--------------
June 30, 1997 June 30, 1996
------------- -------------
Interest expense $1,718,400 $1,901,300
Interest income (274,500) (511,600)
Dividend income -- (16,000)
Total interest and ---------- ----------
dividends - net $1,443,900 $1,373,700
========== ==========
9. During the three and six months ending June 30, 1997, the effective
tax rate was 39.0% and 39.3% respectively compared to 38.2% and 44.3
respectively during the same periods ending June 30, 1996. Income taxes
have been computed based on the estimated annual effective tax rate.
10. The purchase of NEPSA on July 5, 1994, resulted in $26,505,300 of
goodwill. This amount is being amortized on a straight-line basis over
its estimated life of 25 years.
11. Cash payments for interest and income taxes were:
3 Months Ended
--------------
June 30, 1997 June 30, 1996
------------- -------------
Interest $ 547,200 $ 549,300
Income tax $1,129,800 $3,315,000
6 Months Ended
--------------
June 30, 1997 June 30, 1996
------------- -------------
Interest $1,792,200 $1,284,900
Income tax $1,674,100 $4,259,200
<PAGE>
REVIEW BY
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
The Consolidated Condensed Financial Statements as of June 30, 1997 and for the
three and six months then ended have been reviewed prior to filing by Deloitte &
Touche LLP, Independent Certified Public Accountants, in accordance with
established professional standards and procedures for such a review.
The report of Deloitte & Touche LLP commenting upon their review is included as
Part I - Exhibit 1.
<PAGE>
Independent Accountants' Report
To the Board of Directors
Blessings Corporation
Newport News, Virginia
We have reviewed the accompanying consolidated condensed balance sheet of
Blessings Corporation and subsidiaries as of June 30, 1997, and the related
consolidated condensed statements of earnings and cash flows for the three and
six months ended June 30, 1997 and 1996. These financial statements are the
responsibility of the Corporation'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 of 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 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 such consolidated condensed financial statements for them to be in
conformity with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet of Blessings Corporation and
subsidiaries as of December 31, 1996, and the related consolidated statements of
earnings, shareholders' equity, and cash flows for the year then ended (not
presented herein) and in our report dated February 21, 1997, we expressed an
unqualified opinion on those consolidated financial statements. In our opinion,
the information set forth in the accompanying consolidated condensed balance
sheet as of December 31, 1996 is fairly stated, in all material respects, in
relation to the consolidated balance sheet from which is has been derived.
Deloitte & Touche LLP
Richmond, Virginia
July 18, 1997
<PAGE>
July 18, 1997
Board of Directors
Blessings Corporation
Newport News, Virginia
We have made a review, in accordance with standards established by the American
Institute of Certified Public Accountants, of the unaudited interim financial
information of Blessings Corporation and subsidiaries for the three and six
months ended June 30, 1997 and 1996, as indicated in our report dated July 18,
1997; because we did not perform an audit, we expressed no opinion on that
information.
We are aware that our report referred to above, which is included in your
Quarterly Report on Form 10-Q for the quarter ended June 30, 1997, is
incorporated by reference in the following Registration Statements:
Form: Registration Statement No.:
S-8 33-41762
S-8 33-54108
S-8 33-70328
S-8 33-85382
S-8 33-85384
S-8 33-12387
S-8 33-31303
We also are aware that the aforementioned report, pursuant to Rule 436(c) under
the Securities Act of 1933, is not considered a part of the Registration
Statement prepared or certified by an accountant or a report prepared or
certified by an accountant within the meaning of Sections 7 and 11 of that Act.
Deloitte & Touche, LLP
Richmond, Virginia
<PAGE>
<TABLE>
<CAPTION>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
SUMMARY:
The following tables set forth for the period indicated 1) the amounts
and percentages which certain items reflected in the financial data bear to net
sales of the Company and 2) the percentage increase (decrease) of such items as
compared to the indicated prior period:
Relationship to Net Sales
3 Months Ended Percent
--------------------------------------------------------------------------- Increase/(Decrease)
June 30, 1997 Percent June 30, 1996 Percent 1997/1996
------------- ------- ------------- ------- ---------
<S> <C> <C> <C> <C> <C>
Net Sales $43,185,000 100.0 $36,253,400 100.0 19.1
Cost of sales 30,617,400 70.9 26,355,000 72.7 16.2
----------- -------- ----------- ---------
Gross margin 12,567,600 29.1 9,898,400 27.3 27.0
Other costs and
expenses 8,644,000 20.0 7,663,500 21.1 12.8
----------- -------- ----------- ---------
Earnings from operations
before taxes on income
and minority interest 3,923,600 9.1 2,234,900 6.2 75.6
Taxes on income 1,530,400 3.5 853,000 2.4 79.4
----------- -------- ----------- ---------
Minority interest in net
income of subsidiary 773,400 1.8 366,300 1.0 111.1
----------- -------- ----------- ---------
Net earnings $ 1,619,800 3.8 $ 1,015,600 2.8 59.5
=========== ======== =========== ========= ======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MANAGEMENT'S DISCUSSION AND ANALYS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Relationship to Net Sales
6 Months Ended Percent
--------------------------------------------------------------------------- Percentase/(Decrease)
June 30, 1997 Percent June 30, 1996 Percent 1997/1996
------------- ------- ------------- ------- ---------
<S> <C> <C> <C> <C> <C>
Net Sales $88,261,700 100.0 $75,786,700 100.0 16.5
Cost of sales 62,127,700 70.4 52,692,600 69.5 17.9
----------- -------- ----------- ---------
Gross margin 26,134,000 29.6 23,094,100 30.5 13.2
Other costs and
expenses 17,096,100 19.4 15,028,200 19.8 13.8
----------- -------- ----------- ---------
Earnings from operations
before taxes on income
and minority interest 9,037,900 10.2 8,065,900 10.6 12.1
Taxes on income 3,549,100 4.0 3,572,100 4.7 (.6)
---------- -------- ----------- ---------
Minority interest in net
income of subsidiary 1,572,100 1.8 1,241,500 1.6 26.6
----------- -------- ----------- ---------
Net earnings $ 3,916,700 4.4 $ 3,252,300 4.3 20.4
============ ======== =========== ========= =======
</TABLE>
<PAGE>
RESULTS OF OPERATIONS:
Except for the historical information contained herein, the matters discussed in
this quarterly report are forward-looking statements that are based upon a
number of assumptions concerning future conditions that ultimately may prove to
be inaccurate, and which involve risks and uncertainties, including but not
limited to economic, competitive, governmental regulation, legal, currency
valuations and technological factors affecting the Company's operations,
markets, products, services and prices, and other factors discussed in the
Company's filings with the Securities and Exchange Commission.
Net Sales:
Net sales for the second quarter ended June 30,1997 increased 19.1%
over the second quarter 1996. Through the first half, net sales were up by 16.5%
over the comparable period of 1996. The improvement in 1997 was primarily the
result of a domestic unit volume increase of 13% over the prior year's
performance despite the elimination of certain low margin product segments.
NEPSA, the Company's 60% owned Mexican subsidiary, realized a 5% unit volume
increase over the first half of 1996 reflecting an improved Mexican economy as
well as NEPSA's improving market share in its major diaper segment.
Operating Costs and Expenses:
Gross margin for the second quarter was 29.1%, an increase of 1.8
percentage points over last year's second quarter. The higher gross margin was
achieved despite near historic high resin costs and was primarily the result of
the elimination of certain low margin product segments from the sales mix. Other
costs and expenses declined as a percentage of sales reflecting the higher sales
and production levels achieved both domestically and in Mexico.
Taxes on Income:
The effective tax rate for the first half of 1997 was 39.3% compared to
44.3% for the first half of last year. The decreased rate was primarily the
result of an increase in depreciation expense for tax purposes due to
inflationary indexation of fixed assets in Mexico and the availability of
domestic tax credits.
Liquidity and Capital Resources:
As of June 30, 1997, the Company had working capital of $13,828,500
compared to $14,358,300 at year-end, a decrease of $529,800. The ratio of
current assets to current liabilities at the end of the quarter and at year-end
was 1.5 to 1. During the quarter the Company decreased its borrowing against its
revolving credit line to $1 million, leaving $24 million available. In addition,
the Company was utilizing $465,000 against its $12 million short-term credit
line at the end of the quarter.
<PAGE>
PART II. OTHER INFORMATION
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
(a) Blessings Corporation's annual meeting of security
holders was held on May 20, 1997.
(b) Proxies were solicited by Blessings' management
pursuant to Regulation 14 under the Securities
Exchange Act of 1934. There was no solicitation in
opposition to management's eleven (11) nominees for
directors as listed in the proxy statement and all
such nominees were elected.
(c)The shareholders voted 8,581,851 in the affirmative,
282,244 in the negative and 532,846 abstained to adopt
the 1997 Long-Term Incentive Plan. There were no broker
non-votes.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
27. Financial Data Schedule
(b) Reports on Form 8-K: There were no reports on Form
8-K for the three months ended June 30, 1997.
<PAGE>
S I G N A T U R E S
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this to be signed on its behalf by the undersigned
thereunto duly authorized.
BLESSINGS CORPORATION
DATED: August 12, 1997 /s/Wayne A. Durboraw
---------------------------------------
Wayne A. Durboraw, Controller
DATED: August 12, 1997 /s/James P. Luke
---------------------------------------
James P. Luke, Executive Vice President
(Principal Financial Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 5,931,900
<SECURITIES> 0
<RECEIVABLES> 21,942,600
<ALLOWANCES> 1,718,000
<INVENTORY> 13,832,300
<CURRENT-ASSETS> 42,356,000
<PP&E> 127,142,900
<DEPRECIATION> 41,442,900
<TOTAL-ASSETS> 160,377,000
<CURRENT-LIABILITIES> 28,527,500
<BONDS> 32,690,600
0
0
<COMMON> 7,252,500
<OTHER-SE> 68,254,800
<TOTAL-LIABILITY-AND-EQUITY> 160,377,000
<SALES> 43,185,000
<TOTAL-REVENUES> 43,185,000
<CGS> 30,617,400
<TOTAL-COSTS> 39,261,400
<OTHER-EXPENSES> 8,644,000
<LOSS-PROVISION> 1,718,000
<INTEREST-EXPENSE> 728,900
<INCOME-PRETAX> 3,923,600
<INCOME-TAX> 1,530,400
<INCOME-CONTINUING> 1,619,800
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,619,800
<EPS-PRIMARY> .16
<EPS-DILUTED> .16
</TABLE>
