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 March 3, 1996 COMMISSION FILE NUMBER 1-5960
CONCORD FABRICS INC.
(Exact name of Registrant as specified in its charter)
DELAWARE 13-5673758
(State or other jurisdiction of (I. R. S. Employer
incorporation or organization) Identification No.)
1359 Broadway, New York, New York 10018
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 760-0300
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 .
2,115,656 shares of Registrant's Class A Common Stock, par value $.50
per share and 1,509,451 shares of Registrant's Class B Common Stock, par
value $.50 per share were outstanding as of March 26, 1996.
1 of 14 <PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED MARCH 3, 1996
INDEX Page Number
PART I. Financial Information
Item 1. Financial Statements
Consolidated Statements of Operations -
Twenty-Six Weeks Ended March 3, 1996
(Unaudited) and February 26, 1995 (Unaudited) 3
Consolidated Balance Sheets - March 3,
1996 (Unaudited), and September 3, 1995 (Derived
from Audited Financial Statements) and
February 26, 1995 (Unaudited) 4-5
Consolidated Statements of Cash Flows -
Twenty-Six Weeks Ended March 3, 1996
(Unaudited) and February 26, 1995 (Unaudited) 6
Notes to Consolidated Financial Statements
(Unaudited) 7-10
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of
Operations 11-12
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K 13
Signature Page 14
2 of 14
<PAGE>
<TABLE>
Item 1. Financial Statements
--------------------
<CAPTION>
CONCORD FABRICS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(Note A)
For the Twenty-Six Weeks Ended For the Thirteen Weeks Ended
------------------------------ -----------------------------
March 3, February 26, March 3, February 26,
1996 1995 1996 1995
------------ ------------ ----------- -----------
<S> <C> <C> <C> <C>
Net Sales ..................... $73,463,198 $95,181,103 $39,152,098 $46,670,809
------------ ------------ ----------- -----------
Cost of Sales ................. 54,223,282 75,425,095 29,008,145 37,386,822
Merchandising Expenses ........ 5,117,962 5,336,975 2,696,147 2,731,249
Selling and Shipping Expenses . 6,178,993 6,582,942 3,118,765 3,275,439
General and Administrative
Expenses ................... 5,822,054 6,829,904 2,952,166 3,366,754
Interest Expense (Net) ........ 958,223 1,158,994 484,687 645,742
------------ ------------ ----------- ------------
Total ................... $72,300,514 $95,333,910 $38,259,910 $47,406,006
------------- ------------ ----------- ------------
Earnings (Loss) before income
taxes and extraordinary item 1,162,684 (152,807) 892,188 (735,197)
Income tax provision (credit) . 548,000 (21,000) 411,000 (263,000)
------------ ----------- ----------- -----------
Earnings (Loss) before extra-
ordinary item .............. 614,684 (131,807) 481,188 (472,197)
Extraordinary item net of
income tax credit (Note D) . -0- (297,266) -0- (297,266)
------------ ----------- ----------- -----------
Net Earnings (Loss) ........... $ 614,684 ($429,073) $ 481,188 ($769,463)
============ =========== =========== ===========
Net Earnings (Loss) per common
share before extraordinary
item ....................... $.17 ($.04) $.13 ($.13)
Extraordinary item ............ -0- ($.08) -0- ($.08)
------------ ----------- ----------- -----------
Net Earnings (Loss) per Common
Share ...................... $.17 ($.12) $.13 ($.21)
============ =========== =========== ===========
Number of shares used in computing
earnings per Common Share .. 3,624,665 3,602,562 3,625,107 3,602,562
============ =========== =========== ===========
Dividend per Common Share ..... NONE NONE NONE NONE
============ =========== =========== ===========
The attached notes are made a part hereof.
</TABLE> 3 of 14<PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Note A)
September 3,
1995
(Derived from
March 3, Audited February 26,
1996 Financial 1995
A S S E T S (Unaudited) Statements) (Unaudited)
- ----------- ------------ ------------ ------------
Current Assets:
Cash .......................... $ 1,186,758 $ 2,362,119 $ 1,385,421
Temporary cash investments (at cost
which approximates market) . -0- -0- 600,000
Income tax refund receivable .. 1,867,000 2,051,000 898,211
Accounts receivable (less
estimated doubtful accounts
of $1,645,000 on March 3,
1996, $1,225,000 on September 3,
1995, and $2,805,000 on
February 26, 1995) ......... 30,158,146 27,909,706 34,815,610
Inventories (Note B) .......... 23,709,535 24,071,426 30,284,320
Prepaid expenses and other
current assets .............. 1,557,388 2,352,403 1,841,496
Deferred income taxes ......... 2,010,000 2,172,000 1,634,000
----------- ----------- -----------
Total Current Assets .......... $60,488,827 $60,918,654 $71,459,058
Property, plant and equipment
(at cost, less depreciation
and amortization of
$5,692,954 on March 3,
1996, $5,101,597 on September 3,
1995, and $6,948,125 on
February 26, 1995) ............ 8,475,886 8,153,913 10,278,575
Property and plant leased to others 2,117,452 2,193,532 2,269,612
Property, plant, & equipment held for sale -
at estimated disposal value ... 2,902,700 3,000,000 -0-
Deferred income taxes ............ -0- -0- 32,000
Other assets ..................... 2,235,661 2,379,826 1,959,785
----------- ----------- -----------
T O T A L .................. $76,220,526 $76,645,925 $85,999,030
=========== =========== ===========
The attached notes are made a part hereof. 4 of 14 <PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Note A)
September 3,
1995
(Derived from
March 3, Audited February 26,
1996 Financial 1995
L I A B I L I T I E S (Unaudited) Statements) (Unaudited)
- --------------------- ------------ ------------ ------------
Current Liabilities:
Notes payable - banks
(Note C) ................... $ 2,000,000 $ 2,000,000 $ 9,000,000
Accounts payable .............. 9,733,676 8,923,439 10,662,311
Accrued expenses and taxes .... 3,237,619 5,370,075 3,721,05
Income taxes payable .......... 222,000 -0- -0-
------------ ------------ ------------
Total Current Liabilities ..... $15,193,295 $16,293,514 $23,383,364
Notes payable - insurance
company (Note D) .............. 20,000,000 20,000,000 20,000,000
Deferred income taxes ............ 214,000 214,000 -0-
Other liabilities ................ 391,090 361,090 321,417
------------ ------------ ------------
Total Liabilities ............. $35,798,385 $36,868,604 $43,704,781
Commitments and contingencies ------------ ------------ ------------
(Note E)
S T O C K H O L D E R S ' E Q U I T Y
Common stock: (Notes F & G)
Class A - $.50 par value
authorized 4,000,000 shares,
issued 2,115,656 shares at
March 3, 1996, 2,105,611
shares September 3, 1995
and 2,093,111 shares at
February 26, 1995. ......... 1,057,828 1,052,805 1,046,555
Class B - $.50 par value
authorized 4,000,000 shares,
issued 1,509,451 shares at
March 3, 1996, 1,509,451
shares at September 3, 1995
and 1,509,451 shares at
February 26, 1995. ......... 754,726 754,726 754,726
Additional paid-in capital ....... 9,087,998 9,062,885 9,031,635
Retained earnings ................ 29,521,589 28,906,905 31,461,333
----------- ----------- -----------
Total Stockholders' Equity .... $40,422,141 $39,777,321 $42,294,249
----------- ----------- -----------
T O T A L .................. $76,220,526 $76,645,925 $85,999,030
=========== =========== ===========
The attached notes are made a part hereof.
5 of 14<PAGE>
<TABLE>
CONCORD FABRICS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
<CAPTION> (Note A)
For the Twenty-Six Weeks Ended
--------------------------------
March 3, February 26,
1996 1995
------------ ------------
Cash flows from operating activities:
<S> <C> <C>
Net earnings (loss) ............................ $ 614,684 ($429,073)
Adjustments to reconcile net earnings (loss) to net
cash (used in) operating activities:
Depreciation and amortization ............. 667,437 922,347
Deferred income tax ....................... 162,000 182,000
Provision for doubtful accounts ........... 420,000 630,000
Changes in assets:
Decrease (increase) in:
Accounts receivable ................. (2,668,440) (446,448)
Inventories ......................... 361,891 800,240
Income tax refunds receivable ....... 184,000 (898,211)
Prepaid expenses and other
current assets .................... 795,015 715,433
Other assets ........................ 144,165 (431,292)
Changes in liabilities:
Increase (decrease) in:
Accounts payable .................... 810,237 (4,528,472)
Accrued expenses and taxes .......... (2,132,456) (3,290,757)
Income taxes payable ................ 222,000 (992,637)
Other liabilities ................... 30,000 19,464
----------- -----------
Net cash (used in) operating activities: ........ (389,467) (7,747,406)
----------- -----------
Cash flows from investing activity:
Purchases of property, plant, and equipment ..... (913,330) (2,244,555)
Proceeds of sale of Washington Plant machinery
and equipment ................................. 97,300 -0-
----------- -----------
Net cash (used in) investing activities: ........... (816,030) (2,244,555)
Cash flows from financing activities:
Increase (decrease) in notes payable - bank ..... -0- (600,000)
Increase in notes payable - insurance company (net) -0- 11,000,000
Sale of common stock (stock option exercised) ... 30,136 -0-
----------- -----------
Net cash provided by financing activities .......... 30,136 10,400,000
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1,175,361) 408,039
----------- -----------
Cash and cash equivalents - beginning of period .... 2,362,119 1,577,382
----------- -----------
CASH AND CASH EQUIVALENTS - END OF PERIOD .......... $1,186,758 $1,985,421
The attached notes are made a part hereof. =========== ==========
</TABLE> 6 of 14 <PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
NOTES TO FORM 10-Q
AS AT MARCH 3, 1996
(Unaudited)
Note A
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with the instructions to Form 10-Q and do not
include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion of
management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair representation have been included. Operating
results for the twenty-six weeks ended March 3, 1996 are not necessarily
indicative of the results that may be expected for the fiscal year ending
September 1, 1996. These statements should be read in conjunction with the
financial statements and notes thereto included in Registrant's annual report
to shareholders and Form 10-K for the fiscal year ended September 3, 1995.
Note B - Inventories:
Inventories are summarized by categories as follows:
March 3, September 3, February 26,
1996 1995 1995
------------ ----------- ------------
Finished goods......... $12,395,129 $12,160,524 $16,878,027
Work-in-process........ 3,214,297 3,253,096 4,707,098
Greige goods and yarn.. 8,100,109 8,657,806 8,699,195
------------ ----------- ------------
Total............... $23,709,535 $24,071,426 $30,284,320
============ =========== ============
The foregoing inventory amounts at March 3, 1996 and February 26, 1995 were
determined from perpetual inventory records maintained by Registrant.
Note C - Notes Payable - Banks:
At March 3, 1996, Registrant had total unused bank lines of credit
aggregating $18,000,000; bank debt was $2,000,000. Amounts borrowed are
generally due in 30 to 90 days. The line of credit arrangements are informal
and cancellable at the banks' option. Registrant is generally expected to
maintain average annual compensating bank balances in consideration of its
average annual bank borrowings. Registrant believes it has been in
substantial compliance with its arrangements and that withdrawal of bank
balances is not legally restricted. The interest rate on amounts outstanding
at March 3, 1996 was 8.25%.
A subsidiary of the Registrant had approximately $1,684,000 of letters
of credit outstanding at March 3, 1996 for merchandise scheduled for future
delivery.
7 of 14<PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
NOTES TO FORM 10-Q
AS AT MARCH 3, 1996
(Unaudited)
Continued
Note D - Notes Payable - Insurance Company:
On November 30, 1994, the Registrant obtained a $20,000,000 loan from John
Hancock Mutual Life Insurance Company. This unsecured loan bears interest at
9.31% a per annum and is repayable in seven equal annual installments
commencing on November 30, 1998. A portion of the loan proceeds was used to
repay the $9,000,000 loan outstanding to the Prudential Insurance Company of
America and a prepayment penalty of $495,000 associated therewith.
The new loan agreement requires maintenance of certain financial ratios and
maintenance of tangible net worth of approximately $36,000,000. The
agreement also prohibits the pledging of assets and restricts dividends and
redemptions of capital stock to $3,000,000 plus 50% of net earnings
subsequent to August 28, 1994; the cumulative amount available for such
payments aggregated approximately $2,332,000 at March 3, 1996.
Note E - Purchase Commitments:
At March 3, 1996, Registrant had outstanding commitments to purchase greige
goods aggregating $4,200,000. At February 26, 1995 outstanding purchase
commitments were approximately $13,400,000.
Note F - Common Stock:
The Class A and Class B shares principally differ as follows:
(1) The Class A shares have a 15% dividend preference and a 10% liquidation
preference with respect to the Class B shares.
(2) Holders of Class A shares are entitled to one vote a share whereas
holders of Class B shares are entitled to ten votes a share.
(3) Holders of Class A shares voting as a separate class are entitled to
elect 25% of Registrant's directors and holders of Class A shares and Class B
shares voting together are entitled to elect the remaining directors.
8 of 14 <PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
NOTES TO FORM 10-Q
AS AT MARCH 3, 1996
(Unaudited)
Continued
(4) Class B shares are convertible into Class A shares on the basis of one
share of Class A shares for each share of Class B shares; Class A shares
have no conversion rights.
Note G - Stock Options:
Pursuant to an Incentive Program adopted on January 10, 1989, awards (as
defined) may be granted to key employees of the Registrant up to a maximum of
500,000 shares of the Registrant's Class A common stock.
On January 10, 1989, options to purchase an aggregate of 150,000 shares of
the Registrant's Class A common stock at $3 a share (fair market value at
such date) was granted to three employees. The options are exercisable in
four annual installments commencing January 10, 1994 and expire ten years
from the date of grant.
On January 9, 1996, options to purchase an aggregate of 200,000 shares of the
Registrant's Class A common stock at $4.625 a share (fair market value at
such date) was granted to two employees. The options are exercisable in four
annual installments commencing January 9, 1997 and expire ten years from the
date of the grant.
Option activity for the twenty-six weeks ended March 3, 1996 is summarized as
follows:
Options Outstanding
-------------------
Shares Available Number of
for Grant Shares Amount
Balance - September 3, 1995 .. 350,000 100,000 $ 300,000
Twenty-Six Weeks Ended
March 3, 1996:
Granted ...................(200,000) 200,000 925,000
Exercised ................. -0- (10,045)* (30,135)
Cancelled ................. -0- (2,455)** (7,365)
------- -------- -----------
Balance - March 3, 1996 ...... 150,000 287,500 $1,187,500
======= ======== ===========
* Exercised upon the retirement of an employee.
** Cancelled as a result of an employee's retirement.
9 of 14 <PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
NOTES TO FORM 10-Q
AS AT MARCH 3, 1996
(Unaudited)
Note H - Earnings (Loss) Per Share:
Earnings (loss) per share are computed by dividing net earnings or (loss) by
common shares outstanding and common stock equivalents. Outstanding options
did not have a material dilutive effect on earnings per share for the
thirteen and twenty-six week periods ended March 3, 1996.
Note I - Chino, California Facility:
In February 1994, the Registrant leased the land and building at the Chino
California facility for a five year period at an annual net rental of
$297,000; the lessee was also granted the option to purchase the land and
building during the lease period for $2,900,000.
Note J - Property, Plant and Equipment Held for Sale:
In the fourth quarter of fiscal 1995 Registrant decided to dispose of its
Washington, Georgia dyeing and finishing plant and has been actively
searching for a buyer; manufacturing operations ceased October 6, 1995.
Registrant provided for estimated expenses during the disposition period in
its fiscal year ended September 3, 1995 and estimates that the net proceeds
of sale will approximate the facility's depreciated cost.
10 of 14 <PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
MARCH 3, 1996
Item 2..........MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
OPERATIONS - Twenty-Six Weeks Ended March 3, 1996 Compared With Twenty-Six
Weeks Ended February 26, 1995.
Fabric sales decreased by 22.8% principally due to a decrease in yardage sold
principally with respect to solid woven fabrics which resulted from the
closing of the Washington, Georgia facility.
Gross profit margin increased from 20.8% in fiscal 1995 to 26.2% in fiscal
1996 primarily due to better performance at Registrant's Milledgeville,
Georgia plant and the discontinuance of operations of the Washington, Georgia
facility.
Selling and shipping expenses declined by 6.1% as a result of the decrease in
Registrant's sales. The decrease was less than the actual sales decrease
because some of Registrant's selling expenses do not vary with sales but
represent sales management costs which are more fixed in nature.
General and administrative expenses declined by 14.8% as a result of a
decline in Registrant's 1) provision for doubtful accounts as there were no
significant customer failures in the current period in contrast with the
1995 twenty-six week experience, 2) consulting fees associated with systems
programming, and 3) administrative costs at the Washington, Georgia
manufacturing facility which was shut-down in October 1995.
Interest expense declined by 17.3% due to decreased short-term borrowing
needs due to lower working capital requirements associated with reduced
business activity.
There were pre-tax earnings of $1,163,000 for the first twenty-six weeks of
fiscal 1996 which compared with a pre-tax loss of $153,000 for the first
twenty-six weeks of fiscal 1995. Net earnings were $615,000 for 1996 and the
net loss was $429,000 for 1995. Registrant's 1995 net loss included an
extraordinary item (net of income tax credit) in the amount of $297,000 paid
to an insurance company as a prepayment penalty.
OPERATIONS - Thirteen Weeks Ended March 3, 1996 Compared With Thirteen Weeks
Ended February 26, 1995.
Fabric sales decreased by 16.1% principally due to a decrease in yardage sold
principally with respect to solid woven fabrics which resulted from the
closing of the Washington, Georgia facility.
Gross profit margin increased from 19.9% in fiscal 1995 to 25.9% in fiscal
1996 primarily due to better performance at Registrant's Milledgeville,
11 of 14<PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
MARCH 3, 1996
Item 2..........MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
Continued
Georgia plant and the discontinuance of operations of the Washington, Georgia
facility.
Selling and shipping expenses declined by 4.8% as a result of the decrease in
Registrant's sales. The decrease was less than the actual sales decrease
because some of Registrant's selling expenses do not vary with sales but
represent sales management costs which are more fixed in nature.
General and administrative expenses declined by 12.3% as a result of a
decline in Registrant's 1) provision for doubtful accounts as there were no
significant customer failures in the current period in contrast with the
second fiscal quarter 1995 experience, 2) consulting fees associated with
systems programming, and 3) administrative costs at the Washington, Georgia
manufacturing facility which was shut-down in October 1995.
Interest expense declined by 24.9% due to decreased short-term borrowing
needs due to lower working capital requirements associated with reduced
business activity.
There were pre-tax earnings of $892,000 for the second quarter of fiscal 1996
which compared with a pre-tax loss of $735,000 for the second quarter of
fiscal 1995. Net earnings were $481,000 for 1996 and the net loss was
$769,000 for 1995. Registrant's 1995 net loss included an extraordinary item
(net of income tax credit) in the amount of $297,000 paid to an insurance
company as a prepayment penalty.
LIQUIDITY AND CAPITAL RESOURCES
During the twenty-six weeks of fiscal 1996, Registrant's operations required
the use of $389,000 cash. $913,000 was used to acquire machinery and
equipment. The sale of Washington plant machinery and equipment provided
$97,000. Cash decreased by $1,175,000 during the period. Working capital
increased by $670,000 for the twenty-six weeks ended March 3, 1996.
Registrant expects its lines of credit and cash flow from operations to be
adequate to finance operations and meet its cash requirements for fiscal
1996.
12 of 14 <PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
FORM 10-Q
PART II
Item 6. Exhibits and reports on Form 8-K
(a) Exhibits - None
(b) No report on Form 8-K was filed by
Registrant during the twenty-six
weeks ended March 3, 1996.
13 of 14
<PAGE>
CONCORD FABRICS INC. AND SUBSIDIARIES
-------------------------------------
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.
CONCORD FABRICS INC.
---------------------------------
Registrant
Date: April 2, 1996 By /s/ Earl Kramer
Earl Kramer
President and Chief Executive
Officer
Date: April 2, 1996 By /s/ Martin Wolfson
Martin Wolfson
Senior Vice President-Treasurer
Chief Financial Officer
14 of 14<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
SECOND QUARTER AND TWENTY-SIX WEEKS ENDED FORM 10-Q AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO IT.
</LEGEND>
<RESTATED>
<CIK> 0000023249
<NAME> CONCORD FABRICS INC.
<MULTIPLIER> 1
<CURRENCY> U. S. DOLLARS
<S> <C> <C> <C> <C>
<PERIOD-TYPE> 6-MOS 6-MOS 3-MOS 3-MOS
<FISCAL-YEAR-END> SEP-01-1996 SEP-03-1995 SEP-01-1996 SEP-03-1995
<PERIOD-START> SEP-04-1995 AUG-29-1994 DEC-04-1995 NOV-28-1994
<PERIOD-END> MAR-03-1996 FEB-26-1995 MAR-03-1996 FEB-26-1995
<EXCHANGE-RATE> 1 1 1 1
<CASH> 1,186,758 1,985,421 1,186,758 1,985,421
<SECURITIES> 0 0 0 0
<RECEIVABLES> 30,158,146 34,815,610 30,158,146 34,815,610
<ALLOWANCES> 0 0 0 0
<INVENTORY> 23,709,535 30,284,320 23,709,535 30,284,320
<CURRENT-ASSETS> 60,488,827 71,459,058 60,488,827 71,459,058
<PP&E> 8,475,886 10,278,578 8,475,886 10,278,575
<DEPRECIATION> 0 0 0 0
<TOTAL-ASSETS> 76,220,526 85,999,030 76,220,526 85,999,030
<CURRENT-LIABILITIES> 15,193,295 23,383,364 15,193,295 23,383,364
<BONDS> 0 0 0 0
0 0 0 0
0 0 0 0
<COMMON> 1,812,554 1,801,281 1,812,554 1,801,281
<OTHER-SE> 0 0 0 0
<TOTAL-LIABILITY-AND-EQUITY> 76,220,526 85,999,030 76,220,526 85,999,030
<SALES> 73,463,198 95,181,103 39,152,098 46,670,809
<TOTAL-REVENUES> 73,463,198 95,181,103 39,152,098 46,670,809
<CGS> 54,223,282 75,425,095 29,008,145 37,386,822
<TOTAL-COSTS> 72,300,514 95,333,910 38,259,910 47,406,006
<OTHER-EXPENSES> 0 0 0 0
<LOSS-PROVISION> 0 0 0 0
<INTEREST-EXPENSE> 958,223 1,158,994 484,687 645,742
<INCOME-PRETAX> 1,162,684 (152,807) 892,188 (735,197)
<INCOME-TAX> 548,000 (21,000) 411,000 (263,000)
<INCOME-CONTINUING> 0 0 0 0
<DISCONTINUED> 0 0 0 0
<EXTRAORDINARY> 0 (297,266) 0 (297,266)
<CHANGES> 0 0 0 0
<NET-INCOME> 614,684 (429,073) 481,188 (769,463)
<EPS-PRIMARY> .17 (.12) .13 (.21)
<EPS-DILUTED> 0 0 0 0
</TABLE>
