<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
( X ) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1999
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 No. 0-9220
METATEC INTERNATIONAL, INC.
(Exact name of Registrant as specified in its charter)
OHIO 31-1647405
(State of Incorporation) (IRS Employer Identification No.)
7001 Metatec Boulevard
Dublin, Ohio 43017
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (614) 761-2000
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, and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
--- ---
Number of Common Shares outstanding as of November 12, 1999: 6,075,613
Page 1 of 12
<PAGE> 2
METATEC INTERNATIONAL, INC.
<TABLE>
<CAPTION>
INDEX PAGE
----- ----
<S> <C>
Part I : Financial Information
Item 1 - Financial Statements
Condensed Consolidated Balance Sheets as of September 30,
1999 (unaudited) and December 31, 1998 3
Condensed Consolidated Statements of Operations
for the three months ended September 30, 1999
and 1998 (unaudited) 4
Condensed Consolidated Statements of Operations
for the nine months ended September 30, 1999
and 1998 (unaudited) 5
Condensed Consolidated Statement of Shareholders'
Equity for the nine months ended
September 30, 1999 (unaudited) 6
Consolidated Statements of Cash Flows
for the nine months ended September 30,
1999 and 1998 (unaudited) 7
Notes to Condensed Consolidated Financial
Statements (unaudited) 8
Item 2 - Management's Discussion and Analysis of
Financial Condition and Results of Operations 8-11
Item 3 - Quantitative and Qualitative Disclosures about
Market Risk 11
Part II: Other Information
Items 1-6 12
Signatures 12
</TABLE>
Page 2 of 12
<PAGE> 3
PART I - FINANCIAL INFORMATION
<TABLE>
ITEM I. FINANCIAL STATEMENTS
<CAPTION>
METATEC INTERNATIONAL, INC. (Unaudited)
CONDENSED CONSOLIDATED BALANCE SHEETS September 30, December 31,
1999 1998
- ----------------------------------------------------------- ------------- ------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 2,236,530 $ 2,557,221
Accounts receivable, net of allowance for
doubtful accounts of $444,000 and $490,000 20,082,122 21,635,889
Inventory 3,951,668 3,207,460
Prepaid expenses 1,555,929 1,037,945
Prepaid income taxes 388,891 580,879
Deferred income taxes 143,000 143,000
------------- ------------
Total current assets 28,358,140 29,162,394
Property, plant and equipment - net 63,660,785 55,827,054
Goodwill - net 19,508,427 20,453,366
------------- ------------
TOTAL ASSETS $111,527,352 $105,442,814
============= ============
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 12,156,895 $ 12,052,442
Accrued royalties 2,268,302 2,053,691
Accrued personal property taxes 1,100,029 993,399
Other accrued expenses 1,393,211 2,526,684
Accrued payroll 1,873,726 1,598,507
Unearned income 409,018 156,440
Current maturities of long-term debt
and capital lease obligations 5,426,135 3,080,185
------------- ------------
Total current liabilities 24,627,316 22,461,348
Long-term debt and capital lease obligations,
less current maturities 45,855,232 39,506,376
Other long-term liabilities 75,463 45,193
Deferred income taxes 544,121 1,480,000
------------- ------------
Total liabilities 71,102,132 63,492,917
------------- ------------
Shareholders' equity:
Common stock, $.10 par value; authorized 10,083,500 shares;
issued 1999 - 7,157,355 shares; 1998 - 7,153,480 715,736 715,348
Additional paid-in capital 34,229,402 34,218,577
Accumulated other comprehensive income (175,320) 32,963
Retained earnings 11,477,939 12,805,546
Treasury stock, at cost - 1,081,742 shares (5,822,537) (5,822,537)
------------- ------------
Total shareholders' equity 40,425,220 41,949,897
------------- ------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $111,527,352 $105,442,814
============= ============
</TABLE>
See notes to condensed consolidated financial statements.
Page 3 of 10
<PAGE> 4
<TABLE>
METATEC INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
<CAPTION>
Three Months Ended September 30,
--------------------------------
1999 1998
- -------------------------------------------- ------------ -----------
<S> <C> <C>
NET SALES $28,152,547 $18,981,471
Cost of sales 21,302,999 13,491,223
----------- -----------
Gross profit 6,849,548 5,490,248
Selling, general and administrative expenses 8,622,512 4,592,584
Non-recurring expenses 0 330,917
----------- -----------
OPERATING EARNINGS (LOSS) (1,772,964) 566,747
Other income and (expense):
Investment income 1,684 8,222
Interest expense (843,497) (256,435)
----------- -----------
EARNINGS (LOSS) BEFORE INCOME TAXES (2,614,777) 318,534
Income taxes (benefit) (986,000) 139,000
----------- -----------
NET (LOSS) EARNINGS $(1,628,777) $ 179,534
=========== ===========
NET (LOSS) EARNINGS PER COMMON SHARE
Basic $ (0.27) $ 0.03
=========== ===========
Diluted $ (0.27) $ 0.03
=========== ===========
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
Basic 6,075,613 6,053,315
=========== ===========
Diluted 6,092,748 6,064,334
=========== ===========
</TABLE>
See notes to condensed consolidated financial statements.
Page 4 of 12
<PAGE> 5
<TABLE>
METATEC INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
<CAPTION>
Nine Months Ended September 30,
-------------------------------
1999 1998
- --------------------------------------------- ----------- ------------
<S> <C> <C>
NET SALES $88,709,301 $47,783,587
Cost of sales 64,235,856 32,519,761
----------- -----------
Gross profit 24,473,445 15,263,826
Selling, general and administrative expenses 24,236,797 12,328,630
Non-recurring expenses 0 330,917
----------- -----------
OPERATING EARNINGS 236,648 2,604,279
Other income and (expense):
Investment income 23,357 33,202
Interest expense (2,271,612) (395,202)
----------- -----------
EARNINGS (LOSS) BEFORE INCOME TAXES (2,011,607) 2,242,279
Income taxes (benefit) (684,000) 1,009,000
----------- -----------
NET EARNINGS (LOSS) $(1,327,607) $ 1,233,279
=========== ===========
NET EARNINGS (LOSS) PER COMMON SHARE
Basic $ (0.22) $ 0.20
=========== ===========
Diluted $ (0.22) $ 0.20
=========== ===========
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
Basic 6,074,634 6,054,444
=========== ===========
Diluted 6,124,156 6,095,028
=========== ===========
</TABLE>
See notes to condensed consolidated financial statements.
Page 5 of 12
<PAGE> 6
<TABLE>
METATEC INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (UNAUDITED)
<CAPTION>
Additional
Common Paid-in Retained Accumulated Other Treasury
Stock Capital Earnings Comprehensive Income Stock Total
- -------------------------------------- ------ ----------- ----------- -------------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
BALANCE AT DECEMBER 31, 1998 715,348 $34,218,577 $12,805,546 $ 32,963 $(5,822,537) $41,949,897
Net loss (1,327,607) (1,327,607)
Accumulated other comprehensive income (208,283) (208,283)
-----------
Comprehensive Income (1,535,890)
Stock options exercised 388 10,825 11,213
-------- ----------- ----------- --------- ----------- -----------
BALANCE AT SEPTEMBER 30, 1999 $715,736 $34,229,402 $11,477,939 $(175,320) $(5,822,537) $40,425,220
======== =========== =========== ========= =========== ===========
</TABLE>
See notes to condensed consolidated financial statements.
Page 6 of 12
<PAGE> 7
<TABLE>
METATEC INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<CAPTION>
For the nine months ended September 30, 1999 1998
- -------------------------------------------------------------------- ------------ ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings (loss) $ (1,327,607) $ 1,233,279
Adjustments to reconcile net earnings (loss) to net cash provided
by operating activities:
Depreciation and amortization 10,589,488 6,671,749
Net loss on sales of property, plant and equipment (1,873) 70,170
Changes in assets and liabilities:
Accounts receivable 1,292,785 (2,862,897)
Inventory (811,203) 169,044
Prepaid expenses and other assets (1,100,307) (395,418)
Accounts payable and accrued expenses (341,175) 6,291,932
Unearned income 255,775 (41,363)
------------ ------------
Net cash provided by operating activities 8,555,883 11,136,496
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Decrease in long-term note receivable 0 459,289
Purchase of property, plant and equipment (17,405,780) (9,442,050)
Proceeds from the sales of property, plant and equipment 200,750 18,308
Net cash used for acquisition (374,124) (42,132,532)
------------ ------------
Net cash used in investing activities (17,579,154) (51,096,985)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in long-term debt 9,508,383 43,829,287
Payment of long-term debt and capital lease obligations (813,581) (4,063,875)
Stock options exercised 11,213 124,503
Treasury stock acquired 0 (883,138)
------------ ------------
Net cash provided by financing activities 8,706,015 39,006,777
------------ ------------
Effect of exchange rate on cash (3,435) 979
Decrease in cash and cash equivalents (320,691) (952,733)
Cash and cash equivalents at beginning of period 2,557,221 1,381,057
------------ ------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 2,236,530 $ 428,324
============ ============
SUPPLEMENTAL CASH FLOW DISCLOSURES:
Interest paid $ 2,718,740 $ 219,060
============ ============
Income taxes paid $ 99,849 $ 1,548,607
============ ============
Assets purchased by the assumption of a liability $ 1,433,097 $ 1,731,177
============ ============
</TABLE>
See notes to condensed consolidated financial statements.
Page 7 of 12
<PAGE> 8
METATEC INTERNATIONAL, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
1. Basis of presentation - The consolidated balance sheet as of September 30,
1999, the consolidated statements of operations for the three and nine months
ended September 30, 1999 and 1998, the consolidated statement of shareholders'
equity for the nine months ended September 30, 1999, and the consolidated
statements of cash flows for the nine month periods then ended have been
prepared by the Company, without audit. In the opinion of management, all
adjustments, which consist solely of normal recurring adjustments, necessary to
present fairly, in accordance with generally accepted accounting principles, the
financial position, results of operations and changes in cash flows for all
periods presented have been made.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted. These consolidated financial statements should
be read in conjunction with the consolidated financial statements and notes
thereto included in the Company's December 31, 1998 annual report on Form 10-K.
The results of operations for the period ended September 30, 1999 are not
necessarily indicative of the results for the full year.
Certain reclassifications have been made to the 1998 financial statements to
conform with the 1999 presentation.
2. Subsequent Events - During October 1999, the Company made the decision to
close its client services center in Menomonie, Wisconsin by year end. The
Company anticipates recording an approximate $450,000 charge in the fourth
quarter of 1999 for expenses related to the closing.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO THREE
MONTHS ENDED SEPTEMBER 30, 1998 AND THE NINE MONTHS ENDED SEPTEMBER 30, 1999
COMPARED TO NINE MONTHS ENDED SEPTEMBER 30, 1998.
RESULTS OF OPERATIONS
Net sales for the three months ended September 30, 1999 were $28,153,000, an
increase of $9,171,000, or 48% over the same period of the prior year. This
increase resulted primarily from CD-ROM manufacturing sales increasing
$9,404,000 to $26,625,000 for the three months ended, or 55%. This increase was
primarily a result of significant sales attributable to the CD-ROM services
business acquired from Imation Corporation ("Imation") in September 1998. Radio
syndication sales decreased $137,000, or 12%, primarily as a result of some
customers choosing to use CD-Recordable as a distribution method for smaller
size orders. The Company expects this trend to continue in the foreseeable
future. DVD sales accounted for $114,000 for the three months ended September
30, 1999, as compared to $41,000 for the same period of the prior year.
Net sales for the nine months ended September 30, 1999 were $88,709,000, an
increase of $40,926,000, or 86% over the same period of the prior year. This
increase resulted primarily from CD-ROM manufacturing sales increasing
$39,929,000 to $83,113,000 for the nine months ended September 30, 1999, or 92%.
This increase was primarily a result of significant sales attributable to the
CD-ROM services business acquired from Imation. Radio syndication sales
decreased $788,000, or 21%, primarily as a result of some customers choosing to
use CD-Recordable as a distribution method for smaller size orders. The Company
expects this trend to continue in the foreseeable future. DVD sales accounted
for $306,000 for the nine months ended September 30, 1999, as compared to
$142,000 for the same period of the prior year.
Page 8 of 12
<PAGE> 9
Gross profit was 24% of net sales for the three months ended September 30, 1999
as compared to 29% of net sales for the same period of the prior year. This
decrease is primarily attributed to reduced manufacturing capacity utilization
due to significant capacity added in the Dublin facility, price erosion, and
emphasis on current account retention, rather than new customer growth, during
the three months ended September 30, 1999. Gross profit was 28% of net sales for
the nine months ended September 30, 1999 as compared to 32% of net sales for the
same period of the prior year. This decrease is primarily attributed to reduced
manufacturing capacity utilization, price erosion, and emphasis on current
account retention, rather than new customer growth, during the nine month period
ended September 30, 1999.
Selling, general and administrative ("SG&A") expenses were $8,623,000, or 31% of
net sales, for the three months ended September 30, 1999 as compared to
$4,593,000, or 24% of net sales, for same period of the prior year. SG&A
expenses were $24,237,000, or 27% of net sales, for the nine months ended
September 30, 1999 as compared to $12,329,000, or 26% of net sales, for same
period of the prior year.
Investment income was $2,000 and $8,000 for the three month periods ended
September 30, 1999 and 1998, respectively. Investment income was $23,000 and
$33,000 for the nine month periods ended September 30, 1999 and 1998,
respectively.
Interest expense for the three months ended September 30, 1999 was $843,000 as
compared to $256,000 for the same period of the prior year. Interest expense for
the nine months ended September 30, 1999 was $2,272,000 as compared to $395,000
for the same period of the prior year. The increase in interest expense was due
to borrowings under revolving loan and term loan facilities used primarily for
the acquisition of the CD-ROM services business of Imation.
The income tax benefit was $986,000 for the three months ended September 30,
1999, or an effective tax rate of 38%, as compared to a tax expense of $139,000
for the same period of the prior year, or an effective tax rate of 44%. The
lower income tax rate for the three months ended September 30, 1999 is a result
of losses incurred during the three months ended September 30, 1999. The income
tax benefit was $684,000 for the nine months ended September 30, 1999, as
compared to a tax expense of $1,009,000 for the same period of the prior year.
Net losses for the three months ended September 30, 1999 were $1,629,000, or a
net loss per basic and diluted common share of $.27, as compared to net earnings
in the same period of the prior year of $180,000, or net earnings per basic and
diluted common share of $.03. Net losses for the nine months ended September 30,
1999 were $1,328,000, or a net loss per basic and diluted common share of $.22,
as compared to net earnings in the same period of the prior year of $1,233,000,
or net earnings per basic and diluted common share of $.20. The net earnings
decrease was primarily a result of decreased profit margins due to
under-utilization of manufacturing capacities.
FINANCIAL CONDITION - LIQUIDITY AND CAPITAL RESOURCES
The Company financed its business during the nine months ended September 30,
1999 through cash generated from operations, available cash balances and through
the use of debt. Cash flow from operating activities was $8,250,000 for the nine
months ended September 30, 1999, as compared to $11,136,000 for the nine months
ended September 30, 1998.
The Company had cash and cash equivalents of $2,237,000 as of September 30,
1999. In addition, the Company has a five year $20,000,000 revolving loan
facility, of which $17,270,000 was outstanding as of September 30, 1999. A
portion of this revolving loan facility, along with a five year $30,000,000
Page 9 of 12
<PAGE> 10
term loan facility, was used to finance the Imation asset purchase. The
remaining portion of the revolving loan facility is available for general
corporate purposes. Borrowing under these credit facilities bear interest, at
the Company's option, at either the federal funds rate plus 50 basis points or
prime rate (whichever of the two are higher) or the London Interbank Offered
Rate (LIBOR) plus a margin based upon the Company's debt coverage ratio (which
ranges from not less than 75 basis points to not more than 150 basis points).
These credit facilities are secured by a first lien on all non-real estate
business assets of the Company and a pledge of the stock of the Company's
subsidiaries. The Company is currently not in compliance with certain of its
financial covenants, and the bank has waived compliance with these covenants
through September 30, 1999. The next compliance review will occur in February
2000, after the completion of the Company's year-end financial statements. The
Company is working with its banks to modify the financial covenants. There can
be no assurance that the Company will satisfy the financial covenants at the
time of the next compliance review. Furthermore, there can be no assurance that
the bank will continue to waive compliance if the Company fails to satisfy these
covenants in the future. The Company's continued failure to satisfy the
financial covenants could cause the bank to accelerate payment of the credit
facilities, which would have a material adverse effect on the Company's
liquidity.
The Company has a $19 million loan facility with Huntington Capital Corp which
is payable in monthly principal and interest payments based upon a thirty year
amortization schedule and bears interest at a fixed rate of 8.2%. This term loan
facility was used to permanently finance the Company's new Dublin, Ohio
distribution center and to pay down other bank debt. This loan facility is
secured by a first lien on all real property of the Company and letters of
credit in favor of the lender, in an aggregate amount of $2.4 million.
During October 1999, the Company made the decision to close its client services
center in Menomonie, Wisconsin by year end. The Company anticipates recording an
approximate $450,000 charge in the fourth quarter of 1999 for expenses related
to the closing.
Management believes that current cash balances, plus the funds available under
its current and future credit facilities, plus cash to be generated from future
operations should provide sufficient capital to meet the current business needs
of the Company for the foreseeable future. However, the Company's continued
failure to satisfy the financial covenants of its credit facilities could cause
the bank to accelerate payment of such facilities, which would have a material
adverse effect on the Company's liquidity.
YEAR 2000
The Year 2000 issue is the result of computer programs being written using two
digits rather than four to define the year. Any of the Company's computer
programs that have date-sensitive software may recognize a date using "00" as
the year 1900 rather than 2000. This could result in a system failure or
miscalculations causing disruptions of uncertain duration in operations
including, among other things, a temporary inability to process transactions, or
engage in similar normal business activities.
The Company utilizes information technology ("IT") and non-IT systems which are
essential to its operations. Non-IT systems typically include embedded
technology, such as microcontrollers.
The Company created a task force during 1997 to address the Company's Year 2000
issues, and this task force has been actively assessing the Company's Year 2000
readiness since that time. The Company is employing a risk management approach
to minimize potential disruption to business workflow and revenues as well as
customers' and suppliers' businesses. This approach involves the identification,
ranking, correction, and testing of Year 2000 issues as well as the development
of contingency plans for unforeseen or external disruptions. The Company
retained a third party in the second quarter of 1999 to assist in implementing
this approach throughout the enterprise, which grew significantly through
acquisition in 1998.
As of October 15, 1999, all of the Company's headquarters, manufacturing, and
distribution facilities were Year 2000 compliant and had contingency plans in
place to address unforeseen or external disruptions. The Company's task force
has a continuing maintenance program to assure any changes or additions to
systems or vendors are Year 2000 compliant.
Page 10 of 12
<PAGE> 11
The Company currently believes that all Year 2000 issues will be resolved in a
timely manner and that costs associated with Year 2000 compliance issues will
not be material to the Company's financial position or results of operations.
However, there is a risk that third parties will not achieve Year 2000
compliance in a timely manner, which could have an adverse effect on the
Company's operations.
Direct cost for third party assistance with implementation of Year 2000 risk
management was $31,000. The Company currently believes that the only additional
costs associated with Year 2000 compliance issues include in-house time
associated with administration, review and testing of systems. These costs have
not been calculated, but the Company believes the costs are not material.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Except for historical information, all other statements made in this report are
"forward-looking" within the meaning of the Private Securities Litigation Reform
Act of 1995. Such forward-looking statements are subject to certain risks and
uncertainties that could cause the Company's actual results to differ materially
from those projected. Such risks and uncertainties that might cause such a
difference include, but are not limited to, changes in general business and
economic conditions, changes in demand for CD-ROM products, excess capacity
levels in the CD-ROM industry, seasonality, the introduction of new products by
competitors, increased competition (including pricing pressures), changes in
manufacturing efficiencies, changes in technology, failure to achieve Year 2000
compliance by the Company or third party vendors with which it has significant
relationships, and other risks indicated in the Company's filings with the
Securities and Exchange Commission, including Form 10-K for Metatec's year ended
December 31, 1998.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK.
The Company does not use derivative financial instruments in its investment
portfolio. The Company places its investments in instruments that meet high
credit quality standards. The Company does not expect any material loss with
respect to its investment portfolio.
The Company utilizes term and revolving debt with variable interest rates of 75
to 150 basis points above LIBOR, and is therefore affected by changes in market
interest rates. On July 23, 1999, the Company entered into a $19,000,000
ten-year term loan facility with a fixed rate of 8.2%, which converts a portion
of total debt to fixed rate debt. The Company does not expect changes in
interest rates to have a material effect on income or cash flows in fiscal 1999,
although there can be no assurances that interest rates will not significantly
change.
The effect of foreign exchange rate fluctuations on the Company for the three
months ended September 30, 1999 and 1998 was not material.
Page 11 of 12
<PAGE> 12
PART II - OTHER INFORMATION
---------------------------
Items 1-5. Inapplicable.
-------------
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
(a) Exhibits
The exhibits on to this report begin on page --.
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Metatec International, Inc.
/s/ Daniel D. Viren
BY: Daniel D. Viren
Date: November 12, 1999 Senior Vice President and
Chief Financial Officer
(authorized signatory-
principal financial and
accounting officer)
12 of 12
<PAGE> 13
Form 10-Q
Exhibit Index
Exhibit Number Exhibit Description Page Number
- -------------- ------------------- -----------
27 Financial Data Schedule --
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 2,236,530
<SECURITIES> 0
<RECEIVABLES> 20,526,122
<ALLOWANCES> 444,000
<INVENTORY> 3,951,668
<CURRENT-ASSETS> 28,358,140
<PP&E> 101,904,700
<DEPRECIATION> (38,243,915)
<TOTAL-ASSETS> 111,527,352
<CURRENT-LIABILITIES> 24,627,316
<BONDS> 46,474,816
0
0
<COMMON> 715,736
<OTHER-SE> 39,709,484
<TOTAL-LIABILITY-AND-EQUITY> 111,527,352
<SALES> 88,709,301
<TOTAL-REVENUES> 88,709,301
<CGS> 64,235,856
<TOTAL-COSTS> 88,472,653
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 259,369
<INTEREST-EXPENSE> 2,271,612
<INCOME-PRETAX> (2,011,607)
<INCOME-TAX> (684,000)
<INCOME-CONTINUING> (1,327,607)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,327,607)
<EPS-BASIC> (0.22)
<EPS-DILUTED> (0.22)
</TABLE>
