SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter ended September 30, 1997 Commission File Number 0-1227
CHICAGO RIVET & MACHINE CO.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
ILLINOIS 36-0904920
------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
P. O. Box 3061
90l Frontenac Road
Naperville, Illinois 60566
--------------------------------------- ----------
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code (630) 357-8500
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 September 30, 1997
----------------------------- ---------------------------------
COMMON STOCK, $1.00 PAR VALUE 1,170,896 SHARES
DOCUMENTS INCORPORATED BY REFERENCE
(1) Portions of the Company's Interim Report to Shareholders for the
Quarter ended September 30, 1997 are incorporated by reference in Part I
of this Report.
CHICAGO RIVET & MACHINE CO.
INDEX
PART I. FINANCIAL INFORMATION Page No.
Consolidated Balance Sheets at September 30, 1997 2-3
and December 31, 1996.
Consolidated Statements of Operations for the Three
and Nine Months Ended September 30, 1997 and 1996. 4
Consolidated Statements of Retained Earnings for the
Nine Months Ended September 30, 1997 and 1996. 5
Consolidated Statements of Cash Flows for the Nine
Months Ended September 30, 1997 and 1996. 6
Notes to the Consolidated Financial Statements 7-8
Management's Discussion and Analysis of Financial
Condition and Results of Operations 9-10
PART II. OTHER INFORMATION 11-15
CHICAGO RIVET & MACHINE CO.
Consolidated Balance Sheets
September 30, 1997 and December 31, 1996
Assets
September 30, December 31,
1997 1996
------------- ------------
(unaudited)
Current Assets:
Cash and cash equivalents $ 4,409,402 $ 3,215,688
Certificates of deposit 1,296,625 705,407
U. S. Government securities -- 396,815
Accounts receivable - net of allowances 5,563,509 5,028,885
Inventories:
Raw materials 1,470,244 1,715,685
Work in process 1,944,078 2,318,535
Finished goods 2,730,242 2,864,383
----------- -----------
Total inventories 6,144,564 6,898,603
----------- -----------
Deferred income taxes (Note 4) 781,175 813,000
Other current assets 544,514 271,973
----------- -----------
Total Current Assets 18,739,789 17,330,371
----------- -----------
Goodwill, net of amortization -- 8,348
----------- -----------
Property, Plant and Equipment
At Cost:
Land and improvements 1,008,901 982,635
Buildings and improvements 5,464,355 5,464,355
Machines and other 21,452,402 21,221,316
----------- -----------
27,925,658 27,668,306
Less - Accumulated Depreciation 14,636,703 13,680,473
----------- -----------
Net Property, Plant and Equipment 13,288,955 13,987,833
----------- -----------
Total Assets $32,028,744 $31,326,552
=========== ===========
See Notes to the Consolidated Financial Statements
CHICAGO RIVET & MACHINE CO.
Consolidated Balance Sheets
September 30, 1997 and December 31, 1996
Liabilities and Shareholders' Equity
September 30, December 31,
1997 1996
------------- ------------
(unaudited)
Current Liabilities:
Accounts payable $ 1,220,758 $ 1,257,704
Contributions due profit sharing
and pension plans 569,663 522,278
Wages and salaries 1,165,276 754,791
Other accrued expenses (Note 5) 704,946 435,019
Unearned lease revenue 47,799 53,411
Current portion of note payable 1,800,000 1,800,000
Accrued interest expense 110,755 47,250
Federal and state income taxes 380,637 419,339
----------- -----------
Total Current Liabilities 5,999,834 5,289,792
Note Payable 5,400,000 7,200,000
Deferred Income Taxes (Note 4) 1,213,995 1,060,000
----------- -----------
Total Liabilities 12,613,829 13,549,792
----------- -----------
Shareholders' Equity:
Preferred stock, no par value:
authorized 500,000 shares -
none outstanding -- --
Common stock, $1.00 par value:
authorized 4,000,000 shares -
issued and outstanding 1,170,896
and 1,171,496, respectively 1,170,896 1,171,496
Additional paid - in capital 460,016 460,252
Retained earnings 17,784,003 16,145,012
----------- -----------
Total Shareholders' Equity 19,414,915 17,776,760
----------- -----------
Commitments and Contingencies (Note 3) -- --
----------- -----------
Total Liabilities and Shareholders'
Equity $32,028,744 $31,326,552
=========== ===========
See Notes to the Consolidated Financial Statements
CHICAGO RIVET & MACHINE CO.
Consolidated Statements of Operations
For the Three and Nine Months Ended September 30, 1997 and 1996
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
----------------------------- -----------------------------
September 30, September 30
1997 1996 1997 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net sales $ 10,034,719 $ 4,700,714 $ 33,310,288 $ 15,974,223
Lease revenue 87,633 106,314 275,511 319,149
------------ ------------ ------------ ------------
$ 10,122,352 $ 4,807,028 $ 33,585,799 $ 16,293,372
Cost of goods sold and costs
related to lease revenue 6,925,530 3,212,631 23,530,138 11,071,626
------------ ------------ ------------ ------------
Gross profit 3,196,822 1,594,397 10,055,661 5,221,746
Shipping, selling and
administrative expenses 1,729,429 1,092,249 5,320,769 3,523,185
Profit sharing and pension
expenses 110,000 45,000 450,000 150,000
------------ ------------ ------------ ------------
1,357,393 457,148 4,284,892 1,548,561
Other income and expenses:
Interest income from
U.S. Government securities
and certificates of deposit 61,637 95,614 143,235 282,937
Interest Expense (136,146) -- (410,520) --
Gain (loss) from sale/disposal
of leased machines and other
equipment (207,373) 62,339 (64,914) 62,589
Amortization expense -- (6,249) (8,348) (18,747)
Other income, net of other
expense 15,984 2,921 24,557 10,289
------------ ------------ ------------ ------------
Income before income taxes 1,091,495 611,773 3,968,902 1,885,629
Provision for income taxes 387,000 230,000 1,462,000 720,000
------------ ------------ ------------ ------------
Net income $ 704,495 $ 381,773 $ 2,506,902 $ 1,165,629
============ ============ ============ ============
Average common shares
outstanding 1,170,896 1,171,496 1,171,276 1,171,496
============ ============ ============ ============
Per share data:
Net income per share $ .60 $ .33 $ 2.14 $ .99
============ ============ ============ ============
Cash dividends declared
per share $ .18 $ .15 $ .73 $ .75
============ ============ ============ ============
</TABLE>
See Notes to the Consolidated Financial Statements
CHICAGO RIVET & MACHINE CO.
Consolidated Statements of Retained Earnings
For the Nine Months Ended September 30, 1997 and 1996
(unaudited)
September 30,
------------------------------
1997 1996
------------ ------------
Retained earnings at beginning
of period $ 16,145,012 $ 15,251,361
Net income for the nine months ended 2,506,902 1,165,629
Treasury stock retired at cost (12,828) --
Cash dividends declared in the period -
$.73 per share in 1997 and $.75 per
share in 1996 (855,083) (878,622)
Retained earnings at end of period $ 17,784,003 $ 15,538,368
============ ============
See Notes to the Consolidated Financial Statements
CHICAGO RIVET & MACHINE CO.
Consolidated Statements of Cash Flows
For the Nine Months Ended September 30, 1997 and 1996
(unaudited)
September 30,
-----------------------------
1997 1996
----------- ------------
Cash flows from operating activities:
Net income $ 2,506,902 $ 1,165,629
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 1,019,602 491,607
Net gain on the sale of properties 64,915 (62,589)
Deferred income taxes 185,820 72,536
Changes in current assets and
current liabilities:
Accounts receivable, net (534,624) (301,831)
Inventories 754,039 604,706
Accounts payable (36,946) (85,701)
Other accrued expenses 269,927 187,294
Accrued wages and salaries 410,485 (7,171)
Accrued profit sharing 47,385 (176,839)
Taxes payable (38,702) (448,811)
Other, net (214,646) (366,757)
----------- -----------
Net cash provided by operating
activities 4,434,157 1,072,073
----------- -----------
Cash flows from investing activities:
Capital expenditures (687,796) (314,417)
Net proceeds from the sale of
properties 310,507 113,208
Proceeds from the maturity of
held-to-maturity securities 3,277,581 979,253
Purchases of held-to-maturity
securities (3,471,987) (687,120)
Proceeds from the maturity of
available for sale securities -- 7,917,080
Purchases of available for sale
securities -- (2,599,787)
----------- -----------
Net cash provided (used) by
investing activities (571,695) 5,408,217
----------- -----------
Cash flows from financing activities:
Payments under term loan agreement (1,800,000) --
Purchase of Treasury Stock (13,665) --
Cash dividends (855,083) (878,622)
----------- -----------
Net cash used by financing
activities (2,668,748) (878,622)
----------- -----------
Net increase in cash and cash
equivalents 1,193,714 5,601,668
Cash and cash equivalents at
beginning of period 3,215,688 1,349,093
----------- -----------
Cash and cash equivalents at end
of period $ 4,409,402 $ 6,950,761
=========== ===========
Cash paid during the period for:
Income taxes $ 1,314,881 $ 1,096,293
Interest $ 347,015 $ ---
See Notes to the Consolidated Financial Statements
CHICAGO RIVET & MACHINE CO.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. In the opinion of the Company, the accompanying unaudited
financial statements contain all adjustments necessary to present fairly
the financial position of the Company as of September 30, 1997 and
December 31, 1996 and the results of operations and changes in cash flow
for the indicated periods.
The Company uses estimated gross profit rates to determine the cost
of goods sold during interim periods. Actual results could differ from
those estimates and will be adjusted, as necessary, following the
Company's annual physical inventory in the fourth quarter.
The preparation of financial statements in conformity with
generally accepted accounting principles requires 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.
2. The results of operations for the nine month period ending
September 30, 1997 are not necessarily indicative of the results to be
expected for the year.
3. The Company is involved in litigation, from time to time,
including environmental claims, in the normal course of business. With
regard to environmental claims, the Company has been named by state
and/or federal government agencies as a "potentially responsible party"
with respect to certain waste disposal sites. As a potentially
responsible party, the Company may be considered jointly and severally
liable, along with other potentially responsible parties, for the cost of
remediation of these waste sites.
The actual cost of remediation is presently unknown; however,
estimates currently available suggest that the cost of remediation at
these sites will be between $47 million and $85 million. Despite the
joint and several nature of the liability, these proceedings are
frequently resolved on the basis of the quantity and type of waste
disposed by the parties. The actual amount of liability for the Company
is unknown due to disagreement concerning allocation of responsibility,
uncertainties regarding the amount of contribution that will be available
from other parties and uncertainties related to insurance coverage. After
investigation of the quantities and type of waste disposed at these
sites, it is management's opinion that any liability will not be material
to the Company's financial condition. In this regard, the Company has
recorded a liability of approximately $241,000, which is representative
of management's current estimates of anticipated costs associated with
these proceedings. The adequacy of this reserve will be reviewed
periodically as more definitive cost information becomes available.
4. At September 30, 1997 significant deferred tax liabilities and
assets were comprised of the following:
Depreciation $(1,242,401)
-----------
(1,242,401)
Environmental accruals 109,906
Inventory valuations 343,194
Accrued vacation 180,678
Doubtful accounts 69,406
Accrued Pension 47,877
Unearned rental revenue 19,120
Other, net 39,400
-----------
809,581
-----------
$ (432,820)
-----------
5. Other Accrued Expenses - accrued expenses consist of the
following:
September 30, 1997 December 31, 1996
------------------ -----------------
Environmental costs $ 240,764 $ 250,015
Payroll taxes 197,620 95,037
Property taxes 81,378 35,543
All other items 185,184 54,424
--------- ---------
$ 704,946 $ 435,019
========= =========
6. The Company frequently extends credit, generally on the basis of
30-day terms, to various companies in the automotive and appliance
industries. The Company's credit risk is primarily concentrated within
the automotive industry and in the Midwestern United States.
7. All per share data has been restated to give effect to a
two-for-one stock split that occurred on September 19, 1997.
CHICAGO RIVET & MACHINE CO.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Net sales and lease revenues totaled $10,122,352 during the third
quarter of 1997, which compares favorably with net sales and lease
revenues of $4,807,028 recorded during the third quarter of 1996. On a
year to date basis, revenues totaled $33,585,799 for the first nine
months of 1997, compared with $16,293,372 recorded for the first nine
months of 1996. As previously reported, the Company acquired the assets
of H & L Tool Company, Inc. of Madison Heights, MI ("H & L Tool") in
December 1996. All results reported for 1997 reflect the operations of H
& L Tool. The additional revenues generated by H & L Tool continue to
account for the vast majority of the change in revenue from the
corresponding year earlier period.
Net income for the third quarter of 1997 increased to $704,495 or
$.60 per share. This compares favorably with the year earlier period when
earnings amounted to $381,773 or $.33 per share. For the first nine
months of 1997, net income increased to $2,506,902 or $2.14 per share,
compared with the first nine months of 1996 when net income amounted to
$1,165,629 or $.99 per share. Once again, the additional revenues
associated with H & L Tool were the largest single factor contributing to
the increase in third quarter income. Third quarter 1997 results include
a gain of approximately $.10 per share related to the adjustment of
certain cost of sales estimates. This gain was offset by a non-recurring
charge in connection with the write-down in value of certain computer
software that was originally purchased during the second and third
quarters of 1996. Since that time, the software vendor's financial
condition has weakened substantially and the vendor is no longer able to
provide the technical support required to complete the installation of
this software. As a result, the Company has taken a charge of
approximately $.11 per share against third quarter income. The delay
associated with procuring and installing new software is not expected to
have a material adverse effect upon the Company.
Selling, general and administrative expenses incurred during the
third quarter of 1997 increased by approximately $637,000 over the amount
reported for the third quarter of 1996, and the amount of such expenses
incurred for the first nine months of 1997 exceeded the amount incurred
in the year-earlier period by approximately $1,798,000. As has been the
case since the acquisition of H & L Tool, this category of expense has
increased, in absolute terms, primarily due to additional expenses
associated with H & L Tool. When measured as a percentage of sales,
however, this category of expense has declined.
Working capital at the end of the third quarter amounted to
approximately $12.7 million, an increase of approximately $700,000 from
year end 1996. The decline in inventory levels at the end of the third
quarter of 1997 relative to year end 1996 reflects both a reduction in
the overall quantity of inventory on hand as well as the realization of
approximately $190,000 of "step-up" value associated with the acquisition
of inventory at H & L Tool, as discussed in previous reports. Inventory
levels are considered appropriate for the current level of business
activity. Late in 1996, in connection with the purchase of H & L Tool,
the Company borrowed $9.0 million, on an unsecured basis, subject to
certain customary covenants. Under the terms of the note evidencing such
debt, the Company will repay the principal in 20 quarterly installments
of $450,000, plus interest computed on the unpaid balance at a variable
rate that is calculated under one of two methods: the LIBOR rate plus 80
basis points; or the lender's reference rate, less 75 basis points. The
rate is adjusted quarterly and at the end of the third quarter of 1997
was approximately 6.7%. During the third quarter of 1997, the Company
made an extra payment of $450,000 against the principal balance of the
loan. At the end of the quarter, the outstanding principal balance was
$7.2 million. The $1.0 million line of credit originally obtained in
connection with the acquisition was extended through May 1998 and at
September 30, 1997 it remained unused. The Company believes that its
existing cash, cash equivalents, short-term investments and borrowings
will be sufficient to provide adequate working capital through at least
the next twelve months.
The Financial Accounting Standards Board ("FASB") issued Statement
of Financial Accounting Standards ("SFAS") No. 128, "Earnings Per Share"
in February 1997. This statement establishes new standards for computing
and presenting earnings per share. This statement is effective for
financial statements issued for periods ending after December 15, 1997;
earlier adoption is not permitted. Adoption of this statement is not
expected to have a significant impact on the Company's computation and
presentation of earnings per share.
The FASB issued SFAS No. 130, "Reporting Comprehensive Income" in
June 1997. In addition to net income, comprehensive income includes items
recorded directly to stockholders' equity, such as preferred stock
accretion, preferred stock dividends and the income tax benefit related
to the exercise of certain stock options. This statement is effective for
fiscal years beginning after December 15, 1997 and is not expected to
have a significant impact on the Company's financial statement
presentation.
The FASB issued SFAS No. 131, "Disclosures about Segments of an
Enterprise and Related Information" in June 1997. This statement
establishes new standards for reporting information about operating
segments in interim and annual financial statements, and is effective for
fiscal years beginning after December 15, 1997. The Company is currently
evaluating the impact, if any, this statement will have on the
consolidated financial statements.
See the Company's Interim Report to Shareholders for the quarter
ended September 30, 1997 for additional information. This section is
incorporated by reference. The interim report is filed as an exhibit to
this report.
This discussion contains certain "forward looking statements" which
are inherently subject to risks and uncertainties that may cause actual
events to differ materially from those discussed herein. Factors which
may cause such differences in events include, among other things,
fluctuations in general economic conditions, consumer demand, the gain or
loss of a key customer, the price and availability of the Company's
primary raw materials and the ability of the Company to successfully
integrate H & L Tool into its operations. Therefore, readers are
cautioned not to place undue reliance upon such forward-looking
statements.
PART II -- OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
19.1 Interim Report to Shareholders for the quarter
ended September 30, 1997.
27.1 Financial Data Schedule.
(b) Reports on Form 8-K
A Form 8-K was filed on August 22, 1997.
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.
CHICAGO RIVET & MACHINE CO.
(Registrant)
Date: November 10, 1997
/s/ John A. Morrissey
------------------------------------
Chairman of the Board of Directors
and Chief Executive Officer
Date: November 10, 1997
/s/ John C. Osterman
-----------------------------------
President, Chief Operating
Officer and Treasurer (Principal
Financial Officer)
Date: November 10, 1997
/s/ Stephen D. Voss
----------------------------------
Assistant Treasurer and Controller
CHICAGO RIVET & MACHINE CO.
EXHIBITS
INDEX TO EXHIBITS
Exhibit
Number Page
- -------- ----
19.1 Interim Report to Shareholders for the
quarter ended September 30, 1997 14-16
27.1 Financial Data Schedule 17
E X H I B I T S
To Our Shareholders:
The comparative results of operations of Chicago Rivet & Machine
Co. for the third quarter and first nine months of 1997 and 1996 are
summarized below. Results for 1997 include the operations of the
Company's H & L Tool division, which was acquired in December 1996. All
per share data for 1996 and 1997 have been restated to give effect to a
two for one stock split as of September 19, 1997.
Sales and lease revenues during the third quarter of 1997 amounted
to $10,122,352, compared with $4,807,028 recorded during the
corresponding period in 1996. On a year to date basis, 1997 sales and
lease revenues totaled $33,585,799 compared with $16,293,372 recorded
during the first nine months of 1996. While revenues from the sale of the
Company's traditional products continue to be stronger than in 1996,
revenues associated with the Company's H & L Tool operations account for
the majority of the increase in revenues in both the current quarter and
year to date. Historically, the Company's third quarter performance has
been limited by the reduced work schedules associated with vacation
shutdowns that are scheduled by the Company and by many of its major
customers during the third quarter, and this was again the case in 1997.
Net income improved to $704,495 or $.60 per share on 1,170,896
average shares outstanding during the third quarter of 1997, compared
with $381,773 or $.33 per share on 1,171,496 average shares outstanding
during the third quarter of 1996. On a year to date basis, earnings have
improved to $2,506,902 or $2.14 per share on 1,171,276 average shares
outstanding, compared with $1,165,629 or $.99 per share on 1,171,496
average shares outstanding during the first nine months of 1996.
Additional revenues associated with the H & L Tool acquisition was the
prime factor contributing to the improvement in net income. Third quarter
results include a gain of approximately $.10 per share related to the
adjustment of certain cost of sales estimates. This gain was fully offset
by a non-recurring charge in connection with the write-down in value of
certain computer software that was originally purchased during the second
and third quarters of 1996. Since that time, the software vendor's
financial condition has weakened dramatically and the vendor is no longer
able to provide the technical support required to complete the
installation of this software. As a result, the Company has taken a
charge of approximately $.11 per share against third quarter income. The
delay associated with procuring and installing new computer software is
not expected to have a material adverse effect upon the Company's
operations. On a more positive note, in August, the Company made an extra
principal payment in the amount of $450,000 against the term note
associated with the purchase of the assets of H & L Tool Company.
Overall, the Company's performance throughout 1997 has been
excellent. Actions taken to strengthen our sales and marketing efforts
have been successful, and we expect that continued emphasis on sales and
marketing efforts will continue to improve our position in the market. We
will continue to work toward further reductions in the costs of
manufacturing our products while striving to further improve the quality
of both our products and service to our customers.
Respectfully yours,
John A. Morrissey John C. Osterman
Chairman President
October 27, 1997
This discussion contains certain "forward looking statements" which
are inherently subject to risks and uncertainties that may cause actual
events to differ materially from those discussed herein. Factors which
may cause such differences in events include, among other things,
fluctuations in general economic conditions, consumer demand, the gain or
loss of a key customer, the price and availability of the Company's
primary raw materials and the ability of the Company to successfully
integrate H & L Tool into its operations. Therefore, readers are
cautioned not to place undue reliance upon such forward-looking
statements.
CHICAGO RIVET & MACHINE CO.
SUMMARY OF CONSOLIDATED RESULTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30
<TABLE>
<CAPTION>
THIRD QUARTER FIRST NINE MONTHS
-------------------------- --------------------------
1997 1996 1997 1996
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net sales and lease revenue $10,122,352 $ 4,807,028 $33,585,799 $16,293,372
Income before taxes 1,091,495 611,773 3,968,902 1,885,629
Income after taxes 704,495 381,773 2,506,902 1,165,629
Net income per share .60 .33 2.14 .99
Average shares outstanding 1,170,896 1,171,496 1,171,276 1,171,496
- ---------------------------------------------------------------------------------------
(All figures subject to year end audit)
(Per share data restated to give effect to
two for one stock split that occurred on 9/19/97)
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 4,409,402
<SECURITIES> 1,296,625
<RECEIVABLES> 5,683,258
<ALLOWANCES> 119,749
<INVENTORY> 6,144,564
<CURRENT-ASSETS> 18,739,789
<PP&E> 27,925,658
<DEPRECIATION> 14,636,703
<TOTAL-ASSETS> 32,028,744
<CURRENT-LIABILITIES> 5,999,834
<BONDS> 5,400,000
0
0
<COMMON> 1,170,896
<OTHER-SE> 18,244,019
<TOTAL-LIABILITY-AND-EQUITY> 32,028,744
<SALES> 33,310,288
<TOTAL-REVENUES> 33,585,799
<CGS> 23,530,138
<TOTAL-COSTS> 23,530,138
<OTHER-EXPENSES> 5,770,769
<LOSS-PROVISION> 22,500
<INTEREST-EXPENSE> 410,520
<INCOME-PRETAX> 3,968,902
<INCOME-TAX> 1,462,000
<INCOME-CONTINUING> 2,506,902
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,506,902
<EPS-PRIMARY> 2.14
<EPS-DILUTED> 2.14
</TABLE>
