UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 28, 1999
Commission file number 1-7807
Champion Parts, Inc.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Illinois 36-2088911
------------------------------- ---------------------------------
(State or other jurisdiction of I.R.S. Employer Identification No.
incorporation or organization)
751 Roosevelt Road, #7-110, Glen Ellyn, IL 60137
--------------------------------------------------
(Address of principal executive offices)
630-942-8317
----------------------------------------------------
(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 [ ]
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Class Outstanding at March 28, 1999
------------------------------ -----------------------------
Common Shares - $.10 par value 3,655,266
<PAGE> -1-
PART I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
<TABLE>
CHAMPION PARTS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
FOR THE PERIOD ENDING MARCH 28, 1999
<CAPTION>
March 28, 1999 December 27, 1998
-------------- -----------------
(Unaudited) (Audited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash $ 1,083,000 $ 784,000
Accounts receivable, less allowance
for uncollectible accounts of
$339,000 and $448,000 in 1999 and
1998, respectively 4,558,000 4,701,000
Inventories 6,288,000 6,414,000
Prepaid expenses and other assets 451,000 388,000
Deferred income tax asset 347,000 380,000
----------- -----------
Total current assets 12,727,000 12,667,000
PROPERTY, PLANT AND EQUIPMENT:
Land 197,000 197,000
Buildings 7,821,000 7,821,000
Machinery and equipment 12,807,000 12,720,000
----------- -----------
20,825,000 20,738,000
Less: Accumulated depreciation 16,291,000 16,125,000
----------- -----------
4,534,000 4,613,000
Other assets 34,000 39,000
----------- -----------
TOTAL ASSETS $ 17,295,000 $ 17,319,000
============ ============
<FN>
The accompanying notes are an integral part of these statements.
</TABLE>
<PAGE> -2-
<TABLE>
CHAMPION PARTS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
FOR THE PERIOD ENDING MARCH 28, 1999
<CAPTION>
March 28, 1999 December 27, 1998
-------------- -----------------
(Unaudited) (Audited)
<S> <C> <C>
LIABILITIES AND
STOCKHOLDERS' (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 4,479,000 $ 5,297,000
Accrued expenses:
Salaries, wages and benefits 1,230,000 817,000
Other accrued expenses 6,494,000 6,211,000
Taxes other than income 295,000 170,000
Current maturities of L-T debt:
Current mat. - term notes 601,000 601,000
Current mat. - vendor debt 167,000 167,000
Current mat. - IRB Loan 300,000 300,000
---------- ----------
Total current liabilities 13,567,000 13,563,000
DEFERRED INCOME TAXES 351,000 351,000
LONG-TERM DEBT:
L-T notes payable - revolver 549,000 699,000
L-T notes payable - term notes 2,053,000 2,203,000
L-T notes payable - vendors 2,319,000 2,361,000
Industrial revenue bond (IRB) 1,000,000 1,000,000
---------- ----------
Total long-term debt 5,921,000 6,263,000
STOCKHOLDERS' EQUITY (DEFICIT):
Preferred stock - No par value;
authorized, 10,000,000 shares:
issued and outstanding, none -0- -0-
Common stock - $.10 par value;
authorized, 50,000,000 shares:
issued and outstanding 3,655,266 366,000 366,000
Additional paid-in capital l5,578,000 15,578,000
(Accumulated deficit) (18,118,000) (18,385,000)
Accum. other comp.(loss) (370,000) (417,000)
---------- ----------
Total Stockholders' (Deficit) (2,544,000) (2,858,000)
---------- ----------
Total Liabilities and
Stockholders' (Deficit) $ 17,295,000 $ 17,319,000
============ ============
<FN>
The accompanying notes are an integral part of these statements.
</TABLE>
<PAGE> -3-
<TABLE>
CHAMPION PARTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (CONDENSED)
FOR THE PERIOD ENDING MARCH 28, 1999
<CAPTION>
Three Months Ended
---------------------------------
March 28, 1999 March 29, 1998
-------------- --------------
(Unaudited) (Unaudited)
<S> <C> <C>
Net Sales $ 7,005,000 $ 7,009,000
Costs and Expenses:
Cost of products sold 5,869,000 5,694,000
Selling, distribution and admin. 716,000 770,000
---------- ----------
Total costs and expenses 6,585,000 6,464,000
---------- ----------
Operating income 420,000 545,000
Non-operating (income) expense:
Interest expense 155,000 248,000
Other non-operating income (2,000) (17,000)
---------- ----------
Total non-operating expense 153,000 231,000
Earnings before income taxes 267,000 314,000
Income Taxes -0- -0-
---------- ----------
Net Income $ 267,000 $ 314,000
=========== ===========
Weighted Average Common Shares
Outstanding at March 28, 1999 3,655,266 3,655,266
=========== ===========
Earnings per Common Share -
Basic and Diluted:
Net Income per Common Share $ 0.07 $ 0.09
=========== ===========
<FN>
The accompanying notes are an integral part of these statements.
</TABLE>
<PAGE> -4-
<TABLE>
CHAMPION PARTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' (DEFICIT)
FOR THE PERIOD ENDING MARCH 28, 1999
(Unaudited)
<CAPTION>
Accum.
Additional Other
Common Stock Paid-in (Accum. Compreh.
Shares Amount Capital Deficit) Inc/(Loss)
--------- -------- ----------- ----------- ---------
<S> <C> <C> <C> <C> <C>
BALANCE,
Dec. 27, 1998 3,655,266 $ 366,000 $ 15,578,000 $(18,385,000) $(417,000)
Net Income - - - 267,000 -
Foreign currency
translation adj. - - - - 47,000
BALANCE,
March 28, 1999 3,655,266 $ 366,000 $ 15,578,000 $(18,385,000) $(370,000)
--------- -------- ----------- ----------- --------
<FN>
The accompanying notes are an integral part of these statements.
</TABLE>
<PAGE> -5-
<TABLE>
CHAMPION PARTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED MARCH 28, 1999
(Unaudited)
<CAPTION>
Three Months Ended
---------------------------------
March 28, 1999 March 29, 1998
-------------- --------------
<S> <C> <C>
Net Income $ 267,000 $ 314,000
Other comprehensive income
Foreign currency translation adj. 47,000 27,000
------------ ------------
Comprehensive income $ 314,000 $ 341,000
============ ============
<FN>
Components of accumulated other comprehensive income, included in the
Company's consolidated balance sheet, consist of the foreign currency
translation adjustments.
The accompanying notes are an integral part of these statements
</TABLE>
<PAGE> -6-
<TABLE>
CHAMPION PARTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE PERIOD ENDED MARCH 28, 1999
<CAPTION>
Three Months Ended
---------------------------------
March 28, 1999 March 29, 1998
-------------- --------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 267,000 $ 314,000
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation and amortization 171,000 174,000
Provision for inventory write-offs 27,000 115,000
Changes in assets and liabilities:
Accounts receivable 143,000 (1,097,000)
Inventories (gross) 99,000 (524,000)
Accounts payable (818,000) 985,000
Accrued expenses and other 792,000 (67,000)
------------ ------------
Net cash provided/(used)
in operating activities 681,000 (100,000)
------------ ------------
CASH FLOW FROM INVESTING ACTIVITIES:
Capital expenditures (87,000) (10,000)
Proceeds from the sale of assets -0- 5,000
------------ ------------
NET CASH (USED) BY INVESTING ACT. (87,000) (5,000)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings - old line of credit -0- 102,000
Net payments - new revolving loan (150,000) -0-
Payments - vendor note obligations (42,000) (8,000)
Principal payments -- L-T debt (150,000) -0-
------------ ------------
NET CASH PROVIDED (USED) BY FINANCING
ACTIVITIES (342,000) 94,000
------------ ------------
EFFECTS OF EXCHANGE RATE CHANGES
ON CASH 47,000 27,000
------------ ------------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 299,000 (86,000)
------------ ------------
CASH AND CASH EQUIVALENTS:
Beginning of year 784,000 707,000
------------ ------------
CASH AND CASH EQUIVALENTS:
End of quarter $ 1,083,000 $ 621,000
============ ============
<FN>
The accompanying notes are an integral part of these statements.
</TABLE>
<PAGE> -7-
CHAMPION PARTS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note 1. The accompanying financial statements for the three months
ended March 28, 1999 have been prepared, without audit,
pursuant to the rules and regulations of the Securities and
Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared
in accordance with generally accepted accounting principles
have been condensed or omitted pursuant to such rules and
regulations, although the Company believes that the disclosures
are adequate to make the information presented not misleading.
The condensed consolidated financial statements and these notes
should be read in conjunction with the consolidated financial
statements of the Company included in the Company's Annual
Report on Form 10-K for the year ended December 27, 1998.
The consolidated balance sheet at December 27, 1998 has been
derived from the audited financial statements at that date and
condensed.
Note 2. The information furnished herein reflects all adjustments
(consisting only of normal recurring accruals) which are,
in the opinion of management, necessary for a fair presentation
of the results of operations for the interim period. Results of
operations for the three months ended March 28, 1999 are not
necessarily indicative of results to be expected for the entire
year.
Note 3. Inventories are valued at the lower of cost (first-in,
first-out method) or market. A summary of the inventories
follows:
March 28, 1999 December 27, 1998
-------------- -----------------
Raw materials $ 2,725,000 $ 2,491,000
Work-in-process 2,139,000 2,208,000
Finished goods 1,424,000 1,715,000
------------ ------------
Total Inventories $ 6,288,000 $ 6,414,000
============ ============
Included in inventory above were cores of $2.9 million
(March 28, 1999) and $2.6 million (December 27, 1998).
Note 4. For reporting purposes, product and core returns are offset
against gross sales in arriving at net sales. Net returns
for the quarter ending March 28, 1999 were $2,875,000 versus
$2,333,000 during the same period in 1998.
<PAGE> -8-
Note 5. Business Segments - The Company has adopted Statement of
Financial Accounting Standards (SFAS) No. 131," Disclosures
About Segments of an Enterprise and Related Information."
Following the provisions of SFAS No. 131, the Company is
reporting two operating business segments in the same format
as reviewed by the Company's senior management. Segment one,
Fuel Systems & C.V. Assemblies, remanufactures and sells
replacement fuel system components (carburetors and diesel
fuel injection components) and constant velocity drive
assemblies for substantially all makes and models of domestic
and foreign automobiles and trucks. Segment two, Electrical
& Mechanical Products, remanufactures and sells replacement
electrical and mechanical products for passenger car,
agricultural and heavy-duty truck original equipment
applications. Management uses operating income as the measure
of profit or loss by business segment. Segment assets include
amounts specifically identified with each operation. Corporate
assets consist primarily of property and equipment. Business
segment information is as follows:
Three Months Ended
---------------------------------
March 28, 1999 March 29, 1998
-------------- --------------
Revenues:
Fuel Systems & C.V. Assy's $ 5,497,000 $ 5,075,000
Elect. & Mech. Products 1,503,000 1,934,000
------------ ------------
Total Revenues $ 7,005,000 $ 7,009,000
============ ============
Depr. & Amort. Expense:
Fuel Systems & C.V. Assy's $ 59,000 $ 62,000
Elect. & Mech. Products 92,000 97,000
Corporate 20,000 15,000
------------ ------------
Total depr. & amort. $ 171,000 $ 174,000
============ ============
Net Income/(Loss):
Fuel Systems & C.V. Assy's $ 1,016,000 $ 877,000
Elect .& Mech. Products (337,000) (112,000)
Corporate (412,000) (451,000)
------------ ------------
Total Income $ 267,000 $ 314,000
============ ============
Capital Additions:
Fuel Systems & C.V. Assy's $ 73,000 $ -0-
Elect. & Mech. Products 4,000 5,000
Corporate 10,000 5,000
------------ ------------
Total Capital Additions $ 87,000 $ 10,000
============ ============
Total Assets:
Fuel Systems & C.V. Assy's $ 8,153,000 $ 8,880,000
Elect. & Mech. Products 7,661,000 7,710,000
Corporate 1,481,000 1,978,000
------------ ------------
Total assets $ 17,295,000 $ 18,568,000
============ ============
<PAGE> -9-
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
THREE MONTHS ENDED MARCH 28, 1999 COMPARED TO THREE MONTHS ENDED
MARCH 29, 1998
Net sales for the quarter ended March 28, 1999 were $7,005,000, or
$4,000 lower than net sales of $7,009,000 for the same period of 1998.
Gross rebuilding sales increased $623,000, or 7% over 1998 reflecting
an increase in carburetor business with existing customers and increased
constant velocity joint sales to a new original equipment customer.
Partially offsetting these increases were lower heavy-duty and domestic
passenger car product sales reflecting soft orders from two large OEM
customers. Total product and core returns, which are reflected in
reductions to net sales, were 29% and 25% of gross sales in the first
quarter 1999 and 1998, respectively. The higher return percentage in
1999 is a function of the increase in product return volume for the
quarter, which offset the gain in gross sales. The Company has a
customer product return policy to control product and core returns.
It has also established reserves against expected future declining core
values. However, there can be no assurance that these reserves will be
adequate.
Carburetor sales were 78% and 77% of net sales in the first quarter of
1999 and 1998, respectively. The Company continues to be a significant
supplier of carburetors to the aftermarket. Although new vehicles sold
in the United States and Canada are no longer equipped with carburetors,
the Company continues to sell replacement units for older vehicles, many
of which use carburetors. The Company expects that carburetor sales
will decline in future years. In addition, carburetor margins may be
negatively impacted in the future as customers seek to return product
during periods of declining demand.
Cost of products sold were $5,869,000, or 83.8% of net sales in the
first quarter of 1999 compared to $5,694,000, or 81.3% in the first
quarter of 1998. This increase in the cost of products sold as a
percent of net sales is primarily attributed to significantly higher
direct labor costs incurred to meet shipping demand for carburetors.
Reductions in manufacturing overhead expenses Company-wide helped to
partially reduce the unfavorable labor variances.
Selling, distribution and administrative expenses were $716,000 in
the first quarter of 1999 compared to $770,000 in the first quarter
of 1998. The $56,000 improvement over the same period in 1998
reflects lower administrative spending as a result of Company-wide
cost control efforts, and lower professional fees.
Interest expense was $155,000 in the first quarter of 1999 as compared
to $248,000 in the same period of 1998. This reduction is due to
significantly lower interest and fees under the new loan facility, as
well as reduction in the amount of debt outstanding.
As a result of increased cost of goods sold, net income for the 1999
first quarter was $267,000, or 15% lower than net income of $314,000
in the first quarter of 1998.
<PAGE> -10-
LIQUIDITY AND CAPITAL RESOURCES
WORKING CAPITAL
Net working capital at March 28, 1999 was a negative $840,000,
compared to a negative $861,000 at the end of 1998, and a negative
$6,632,000 for the first quarter of 1998. The improvement in working
capital over first quarter 1998 is primarily a reflection of stating
the new four-year loan under long-term debt as compared to current
maturities of long-term debt for the prior facility, which was in
default. This increase also reflects reclassification of $1,000,000
of the Hope facility $1,300,000 Industrial Revenue Bond to long-term
debt, since the bond documents had cross-default provisions. The
$300,000 due on December 1, 1999 is reflected in the current maturities
of long-term debt.
Accounts receivable at March 28,1999, were $4,558,000, or $143,000 (3%)
lower versus the year-end 1998 balance of $4,701,000. Receivables were
also $1,036,000 lower compared to the March 29,1998 ending balance.
The decrease was due to higher collection volume in the first quarter
of 1999.
At March 29, 1999, net inventories were lower by $126,000, compared to
year-end fiscal 1998, due primarily to reductions in work-in-process
and finished goods inventories. Net inventories also decreased by
$313,000 in the first quarter of 1999 versus first quarter 1998 for
the same the same reason.
Accounts payable at the end of the first fiscal quarter were $818,000
less than year-end 1998. The decrease reflects lower expenses and a
reduction in payables for raw materials. Accounts payable were also
$1,440,000 less than the same quarter ending in March 1998. Accrued
expenses and other payables at the end of the fiscal quarter were
$792,000 higher than fiscal year-end 1998. Accounting for this is a
$413,000 increase in salaries, wages and benefits, and a $216,000
increase in accrued reserve for carburetor returns during future
periods of declining demand.
The amount outstanding for the loans under the NationsCredit line
was $3,203,000 on March 29, 1999 versus $3,503,000 for loans
outstanding on December 27, 1998.
<PAGE> -11-
DEBT
On August 6, 1998, the Company entered into an agreement with
NationsCredit Commercial Corporation for a four-year credit facility
to replace its bank financing. At March 29,1999 the balance
outstanding on the new facility was $3,203,000 plus letter of credit
accommodations of $1,993,000. This compares to a loan balance at
December 27, 1998 of $3,503,000 and accommodations of $2,193,000.
The Company is continuing discussions with certain other unsecured
creditors with past due balances to restructure approximately
$1,800,000 of associated indebtedness upon substantially the same
terms as the settlement with the trade creditors. There is no
assurance that any of these creditors will accept the proposal.
FACTORS WHICH MAY AFFECT FUTURE RESULTS
This quarterly report contains forward-looking statements that are
subject to risks and uncertainties, including but not limited to the
following:
The Company expects the existing over-capacity in the automotive
aftermarket and consolidation within its distribution channels to
cause continued selling price pressure for the foreseeable future.
The present competitive environment is causing change in traditional
aftermarket distribution channels resulting in volume retailers gaining
additional market presence at the expense of traditional wholesalers.
In response, the Company has attempted to diversify its customer base
and currently serves all major segments, including automotive warehouse
distributors and jobbers, original equipment manufacturers of automotive
equipment and large volume automotive retailers. The anticipated
decline in sales from the profitable carburetor product line over the
longer term will impact future results. The Company intends to offset
these impacts through development of niche product markets, new product
development, improvements in its manufacturing processes and cost
containment with a strong focus on capacity utilization. There is
no assurance that the Company's efforts will be successful.
The Company's six largest customers accounted for an aggregate of 98%
of the Company's total sales in first quarter of 1999. Given the
Company's current financial condition and its manufacturing cost
structure, the loss of a large customer would have a materially
adverse impact on the Company's financial condition and results
of operations.
While the Company has established reserves for potential environmental
liabilities that it believes to be adequate, there can be no assurance
that the reserves will be adequate to cover actual costs incurred or
that the Company will not incur additional environmental liabilities
in the future.
There can be no assurance that the impact of the Year 2000 issue will
not have a materially adverse impact on the Company's results. See
"Year 2000 Compliance" for additional information.
Accordingly, actual results may differ materially from those set forth
in the forward-looking statements.
<PAGE> -12-
YEAR 2000 COMPLIANCE
In 1997, the Company initiated a project to address Year 2000 issues
and then develop and implement a Year 2000 readiness plan. The first
phase of the readiness plan was to address its current computer
systems and upgrade them to Year 2000 compliance. The Company elected
to embark on a system and hardware conversion utilizing certified
Year 2000 systems technology on a Year 2000 compliant operating
platform. The initial implementation of systems and hardware was
completed in the first Quarter of 1999.
In addition, as a part of the first phase of the readiness plan, the
Company completed an inventory of the software applications currently
running on its personal computers. A plan is being developed to
upgrade, where necessary, all applications software to be Year 2000
compliant by the third quarter of 1999.
The Company has analyzed its products and non-IT systems such as
imbedded chips in production equipment, and found that there are no
material Year 2000 issues.
The second phase of the readiness project is to address Year 2000
issues with significant customers, vendors and service providers,
including electronic commerce. This phase is in an audit and inquiry
phase, and is approximately 75% complete. There can be no assurance
that the systems of other companies and service providers that
interact with the Company will be sufficiently Year 2000 compliant so
as to avoid an adverse impact on the Company's operations, financial
condition and results of operations. Phase two is estimated to be
completed at the end of the second Quarter of 1999. There are no
significant costs associated with this phase.
The third and final phase of this project will be completed before
the end of the third Quarter of 1999. The company expects to resolve
all internal Year 2000 issues and finalize testing of modifications
during this phase. The Company intends to develop a contingency plan
to be completed by the end of the third quarter to address a worst case
scenario for unresolved Year 2000 issues with customers, vendors and
service providers.
The Company does not presently anticipate that the costs to address
the Year 2000 issue will have a material adverse impact on the
Company's financial condition, results of operations or liquidity.
Present estimated costs for remediation are as follows:
Prior Fiscal Years Fiscal 1999
------------------ -----------
Software $ 332,000 $ 200,000
Hardware & Network 62,000 15,000
<PAGE> -13-
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
(27) Financial Data Schedules
(b) No Form 8-K report was filed by the Company during
the most recently completed fiscal quarter.
<PAGE> -14-
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.
CHAMPION PARTS, INC.
--------------------
(Registrant)
DATE: March 17, 1999 By: /s/ Jerry A. Bragiel
-------------- -------------------------
Jerry A. Bragiel
President, Chief Executive Officer
and Principal Financial Officer
By: /s/ Richard W. Simmons
--------------------------
Richard W. Simmons
Corporate Controller
and Secretary
-15-
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
[TYPE] EX-27
[TEXT]
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEETS AND THE CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 28, 1999 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> MAR-28-1999
<CASH> 1083000
<SECURITIES> 0
<RECEIVABLES> 4897000
<ALLOWANCES> 339000
<INVENTORY> 6288000
<CURRENT-ASSETS> 12727000
<PP&E> 20825000
<DEPRECIATION> 16291000
<TOTAL-ASSETS> 17295000
<CURRENT-LIABILITIES> 13567000
<BONDS> 0
0
0
<COMMON> 366000
<OTHER-SE> (2910000)
<TOTAL-LIABILITY-AND-EQUITY> 17295000
<SALES> 7005000
<TOTAL-REVENUES> 7005000
<CGS> 5869000
<TOTAL-COSTS> 6585000
<OTHER-EXPENSES> (2000)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 155000
<INCOME-PRETAX> 267000
<INCOME-TAX> 0
<INCOME-CONTINUING> 267000
<DISCONTINUED> 0
<EXTRAORDINARY> 267000
<CHANGES> 0
<NET-INCOME> 267000
<EPS-PRIMARY> 0.07
<EPS-DILUTED> 0.07
</TABLE>
