<PAGE>
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 Quarter 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 Number 0-6516
DATASCOPE CORP.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 13-2529596
- ------------------------------- -------------------
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
14 Philips Parkway, Montvale, New Jersey 07645-9998
---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (201) 391-8100
- --------------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last
report:
Indicate by check mark whether the registrant
(1) has filed all reports required to be filed by Section 13 or 15(d)
of the Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the registrant was
required to file such reports), and
(2) has been subject to such filing requirements for the past 90
days.
YES X NO
----- -----
Number of Shares of Company's Common Stock outstanding as of October 29, 1999:
14,988,681.
<PAGE>
Datascope Corp. and Subsidiaries
Management's Discussion and Analysis of
Results of Operations and Financial Condition
Results of Operations
First quarter of fiscal 2000 compared to the corresponding period last
year.
Net Sales
Net sales of $63.5 million in the first quarter of fiscal 2000
increased $7.8 million or 14% from $55.7 million last year.
Sales of the Cardiac Assist / Monitoring Products segment increased
$3.3 million or 7% to $46.8 million from $43.5 million.
Sales of Cardiac Assist products increased 7% to $25.2 million due
to excellent worldwide market acceptance of the Company's two
major products introduced in the last 18 months; the
premium-priced Profile 8 Fr. balloon catheter and the System 98
balloon pump. The Company believes it increased its leading market
share as a result of sales gains made in the first quarter.
Patient Monitoring product sales were $21.6 million in the first
quarter, an increase of 8% over last year's sales of $20.0
million. The increase was attributable to increased sales of newer
monitors including the Expert(TM), Accutorr(R) Plus, MR Monitor
and Visa II central stations. An expanded worldwide selling
organization also contributed to the sales increase.
Sales of the Collagen Products / Vascular Grafts segment increased $4.5
million or 37% to $16.7 million from $12.2 million.
Sales of VasoSeal(R) VHD arterial puncture sealing devices were
$12 million in the first quarter, or 46% above last year.
VasoSeal's sales growth reflects continued strong market growth,
excellent clinical performance and the expansion of its direct
sales and clinical support organization in the United States.
During the first quarter, VasoSeal(R) ES, the second generation
product, was introduced in the U.S. and international markets.
VasoSeal ES is expected to complement the VasoSeal VHD product and
strengthen VasoSeal's competitive position. VasoSeal ES is based
on the proprietary extravascular technology of VasoSeal VHD and
features a one-size-fits-all design that eliminates multiple sizes
and the measurement of skin-to-artery distance.
Sales of Vascular grafts rose 18% to $4.6 million, attributable to
sales of new products. In particular, sales of InterGard(R)
Silver, the world's first anti-microbial vascular graft increased
substantially after its successful launch in Europe last
<PAGE>
year. The InterGard Silver graft is expected to continue to
contribute to higher sales and market share.
The stronger U.S. dollar compared to major European currencies
decreased total sales by approximately $300 thousand in the first
quarter of fiscal 2000.
Gross Profit (Net Sales Less Cost of Sales)
The gross profit percentage was 62.0% for the first quarter of fiscal
2000 compared to 61.2% last year, with the increase primarily
attributable to increased sales of higher margin products.
Research and Development (R&D)
R&D expenses, as a percentage of sales, were 10.4% in the first quarter
of fiscal 2000 compared to 14.1% last year.
R&D expenses of $6.6 million in the first quarter of fiscal 2000,
declined $1.2 million or 16%, primarily due to cost savings from the
restructuring program implemented in the second half of last year and
reduced development expenses in Patient Monitoring.
Selling, General & Administrative Expenses (SG&A)
SG&A expenses, as a percentage of sales, were 41.9% in the first
quarter of fiscal 2000 compared to 42.2% in the corresponding period
last year.
SG&A expenses increased $3.1 million or 13% in the first quarter as a
result of higher selling expenses in the VasoSeal, Patient Monitoring
and Cardiac Assist product lines and increased corporate expenses.
The stronger U.S. dollar compared to major European currencies
decreased SG&A expenses by approximately $43 thousand in the first
quarter of fiscal 2000.
Interest Income and Expense
Interest income was $0.9 million in the first quarter of fiscal 2000
compared to $1.1 million last year. The 19% lower interest income was
attributable to a $7.1 million or 9% decrease in the average investment
portfolio, from $74.9 to $67.8, and a decline in the average yield to
5.1% from 5.4%. The decline in the average investment portfolio was
driven by cash used for the stock repurchase program, increased
inventory to support new product introductions and increased capital
expenditures related to the new Patient Monitoring facility in Mahwah,
New Jersey.
Net Earnings
Net earnings in the first quarter of fiscal 2000 were $4.83 million or
$0.30 per diluted share compared to $2.7 million, or $0.17 per diluted
share. The increase in earnings reflects (a) sales growth in all
product lines (b) a more profitable product mix (c) the
<PAGE>
cost savings from the restructuring program in the second half last
year and (d) a comparison to a relatively weak first quarter last year.
Liquidity and Capital Resources
Working capital was $124.9 million at September 30, 1999 compared to
$125.4 million at June 30, 1999 and the current ratio was 3.8:1
compared to 4.0:1.
In the first quarter of fiscal 2000 cash provided by operations was
$8.1 million, primarily attributable to net earnings, increased
accounts payable and depreciation and amortization, and lower accounts
receivable. Net cash used in investing activities was $0.8 million,
primarily attributable to the purchase of $3.3 million of property,
plant and equipment and purchases of marketable securities, partially
offset by maturities of marketable securities. Net cash used in
financing activities was $9.3 million, attributable to the stock
repurchase program ($10.3 million), partially offset by cash received
from exercise of stock options.
On September 14, 1999 we announced a program to buy $30 million of our
common stock. In September, we completed our second stock repurchase
program to buy $20 million of our common stock which was announced in
August 1998.
Management believes that the Company's financial resources are
sufficient to meet its projected cash requirements.
The moderate rate of current U.S. inflation has not significantly
affected the Company.
Year 2000
The Year 2000 issue is a term used to describe problems that may occur
when computer systems are unable to accurately interpret dates after
December 31, 1999. These problems result from the fact that many
software programs use the two digits "00" to represent the Year 2000.
Starting in fiscal 1998 we commenced a program to identify, remediate,
test and develop contingency plans for the Year 2000 issue in our
computer information systems (CIS), products, vendors, suppliers and
customers.
As of November 12th, 1999, the results of our Year 2000 Program were
as follows:
Computer Information Systems All internal computer systems are Year
2000 compliant.
Products We determined that all currently marketed patient monitor and
intra-aortic balloon pump products are Year 2000 compliant or are not
affected because the product does not contain a date field in the
software. A small number of patient monitor products that are no longer
manufactured are not Year 2000 compliant. In these cases, we offer an
upgrade to any customer requiring Year 2000 compliance for their
monitor, to be paid for by the customer.
<PAGE>
Third Party Vendors and Suppliers We solicited statements of
compliance from our key outside vendors and suppliers with respect to
their CIS and products. All parties responded and informed us that they
are currently compliant or plan to be compliant by December 31, 1999.
Customers We solicited statements of compliance from our key customers
with respect to their CIS. Approximately 71% have responded and
informed us that they are currently compliant or have plans to be
compliant by December 31, 1999. In the event that our key customers are
unable to certify that they will be Year 2000 compliant, we will be
assessing the accounts receivable collection risk of such key
customers. Follow up requests continue to be sent to those customers
that have not responded.
During the remainder of 1999 we will continue our efforts to monitor
the progress and obtain and evaluate responses of our key vendors,
suppliers and customers.
Costs The cost to modify the computer software programs used in our
CIS is covered by existing service agreements with the software
vendors. The assessments, testing and verification of our CIS products
was performed by existing staff and no significant outside resources
were required. Despite the use of internal resources for the Year 2000
Program, there was no significant deferral of other CIS projects. We do
not currently anticipate that any remaining cost for the Year 2000
Program will be material to our financial condition or results of
operations.
The Year 2000 issue presents far-reaching implications, some of which
cannot be anticipated with any degree of certainty. Satisfactorily
addressing the Year 2000 issue is dependent on many factors, some of
which are not completely within our control, such as third-party
remediation plans and other factors. There can be no assurance that the
Year 2000 issue will not have a negative impact on our business
operations or financial statements because we rely on Year 2000
compliance from third parties, including our suppliers, vendors and
customers.
Euro Conversion
As part of the European Economic and Monetary Union (EMU), a single
currency (Euro) will replace the national currencies of most of the
European countries in which we conduct our business. The conversion
rates between the Euro and the participating nations' currencies have
been fixed irrevocably as of January 1, 1999. During a transition
period from January 1, 1999 to December 31, 2001 parties may settle
transactions using either Euro or the participating country's national
currency. The participating national currencies will be removed from
circulation between January 1, 2002 and June 30, 2002 and replaced by
Euro notes and coinage. Full conversion of all affected country
operations to the Euro currency is expected to be completed by the time
national currencies are removed from circulation.
We are currently involved in the phased conversion to the Euro and the
effects on revenues, costs and various business strategies are being
assessed. We are able to conduct business in both the Euro and national
currencies on an as needed basis, as required by the European Union.
<PAGE>
The cost of software and business process conversion is not
expected to be material to our financial condition or results of
operations.
Information Concerning Forward Looking Statements
This Management's Discussion and Analysis of Results of Operations and
Financial Condition includes forward-looking statements that involve
risks and uncertainties because of the possibility that market
conditions may change, particularly as the result of competitive
activity in the cardiac assist, vascular sealing device and other
markets served by us, and because of our dependence on our suppliers
for certain patient monitoring and collagen products. Additional risks
are our ability to successfully introduce and gain market acceptance
for new products, continued demand for our products generally, the
rapid and significant changes that characterize the medical device and
life science research industries and the ability to continue to respond
to such technological changes, information provided to us by third
parties concerning their Year 2000 readiness, and because the timing of
regulatory approvals is uncertain, as well as other risks detailed from
time to time in documents filed by Datascope with the Securities and
Exchange Commission.
Quantitative and Qualitative Disclosures About Market Risk
Due to the global nature of our operations, we are subject to the
exposures that arise from foreign exchange rate fluctuations. Our
objective in managing our exposure to foreign currency fluctuations is
to minimize net earnings volatility associated with foreign exchange
rate changes. We enter into foreign currency forward exchange contracts
to hedge foreign currency transactions which are primarily related to
certain receivables denominated in foreign currencies. Our hedging
activities do not subject us to exchange rate risk because gains and
losses on these contracts offset losses and gains on the assets,
liabilities and transactions being hedged. A portion of the net foreign
transaction gain or loss is reported in our statement of consolidated
earnings in cost of sales and the balance in other income and expense.
We do not use derivative financial instruments for trading purposes.
As of September 30, 1999, we had $5.2 million of foreign exchange
forward contracts outstanding, all of which were in European
currencies. The foreign exchange forward contracts generally have
maturities that do not exceed 12 months and require us to exchange
foreign currencies for U.S. dollars at maturity, at rates agreed to
when the contract is signed.
<PAGE>
Datascope Corp. and Subsidiaries
Consolidated Balance Sheets
(In thousands)
<TABLE>
<CAPTION>
Sept 30, June 30,
1999 1999
----------- -----------
Assets (unaudited) (a)
<S> <C> <C>
Current Assets:
Cash and cash equivalents $ 2,482 $ 4,572
Short-term investments 50,145 45,539
Accounts receivable less allowance for
doubtful accounts of $1,265 and $1,192 56,630 64,289
Inventories 50,470 42,747
Prepaid expenses and other current assets 9,722 9,439
--------- ---------
Total Current Assets 169,449 166,586
Property, Plant and Equipment, net of accumulated
depreciation of $55,389 and $53,353 66,265 63,321
Non-Current Marketable Securities 13,385 20,496
Other Assets 20,084 19,091
--------- ---------
$ 269,183 $ 269,494
========= =========
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $ 14,163 $ 10,565
Accrued expenses 13,438 10,721
Accrued compensation 9,609 13,804
Deferred revenue 4,219 4,380
Taxes on income 3,106 1,695
--------- ---------
Total Current Liabilities 44,535 41,165
Other Liabilities 13,991 13,874
Stockholders' Equity
Preferred stock, par value $1.00 per share:
Authorized 5 million shares; Issued, none -- --
Common stock, par value $.01 per share:
Authorized, 45 million shares; Issued and
outstanding, 16,718 and 16,663 shares 167 167
Additional paid-in capital 53,598 52,570
Treasury stock at cost, 1,756 and 1,416 shares (41,427) (31,079)
Retained earnings 203,751 198,921
Accumulated other comprehensive income (5,432) (6,124)
--------- ---------
210,657 214,455
--------- ---------
$ 269,183 $ 269,494
========= =========
</TABLE>
(a) Derived from audited financial statements
See notes to consolidated financial statements
<PAGE>
Datascope Corp. and Subsidiaries
Statements of Consolidated Earnings
(In thousands, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
September 30,
--------------------------------
1999 1998
-------- --------
<S> <C> <C>
Net Sales $ 63,500 $ 55,700
-------- --------
Costs and Expenses:
Cost of sales 24,124 21,594
Research and development
expenses 6,587 7,834
Selling, general and
administrative expenses 26,606 23,509
-------- --------
57,317 52,937
-------- --------
Operating Earnings 6,183 2,763
Other (Income) Expense:
Interest income (867) (1,072)
Interest expense 2 6
Other, net 48 (56)
-------- --------
(817) (1,122)
-------- --------
Earnings Before Taxes on Income 7,000 3,885
Taxes on Income 2,170 1,204
-------- --------
Net Earnings $ 4,830 $ 2,681
======== ========
Earnings Per Share, Basic $ 0.32 $ 0.17
======== ========
Weighted average common
shares outstanding, Basic 15,206 15,417
======== ========
Earnings Per Share, Diluted $ 0.30 $ 0.17
======== ========
Weighted average common
shares outstanding, Diluted 16,093 15,860
======== ========
</TABLE>
See notes to consolidated financial statements
<PAGE>
Datascope Corp. and Subsidiaries
Statements of Consolidated Cash Flows
(Dollars in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
September 30,
---------------------------
1999 1998
-------- --------
<S> <C> <C>
Operating Activities:
Net cash provided by (used in) operating activities $ 8,103 $ (1,101)
-------- --------
Investing Activities:
Capital expenditures (3,282) (2,490)
Purchases of marketable securities (14,499) (5,374)
Maturities of marketable securities 17,003 20,530
-------- --------
Net cash (used in) provided by investing activities (778) 12,666
-------- --------
Financing Activities:
Treasury shares acquired under repurchase programs (10,348) (11,694)
Exercise of stock options and other 1,028 119
-------- --------
Net cash used in financing activities (9,320) (11,575)
-------- --------
Effect of exchange rates on cash (95) 54
-------- --------
(Decrease) increase in cash and cash equivalents (2,090) 44
Cash and cash equivalents, beginning of period 4,572 3,364
-------- --------
Cash and cash equivalents, end of period $ 2,482 $ 3,408
======== ========
Supplemental Cash Flow Information
Cash Paid (refunded) during the period for:
Income taxes $ 726 $ (1,018)
-------- --------
Non-cash transactions:
Net transfers of inventory to fixed assets
for use as demonstration equipment $ 2,171 $ 2,706
-------- --------
</TABLE>
See notes to consolidated financial statements
<PAGE>
Datascope Corp. and Subsidiaries
Notes to Consolidated Financial Statements
(Unaudited, in thousands except per share data)
1. Basis of Presentation
The consolidated financial statements include the accounts of Datascope Corp.
and its subsidiaries (the "Company" - which may be referred to as "our", "us" or
"we").
The consolidated balance sheet as of September 30, 1999 and the statements of
consolidated earnings and cash flows for the three month periods ended September
30, 1999 and 1998 have been prepared by the Company, without audit. In our
opinion, all adjustments (which include only normal recurring adjustments) have
been made that are necessary to present fairly the financial position, results
of operations and cash flows for all periods presented.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted. We suggest that you read these condensed
consolidated financial statements in conjunction with the financial statements
and notes included in our Annual Report on Form 10-K for the fiscal year ended
June 30, 1999. The results of operations for the period ended September 30, 1999
are not necessarily indicative of a full year's operations.
We have reclassified certain prior year information to conform with the current
year presentation.
2. Inventories
Inventories are stated at the lower of cost or market, with cost determined on a
first-in, first-out basis.
-------- --------
Sept 30, June 30,
1999 1999
------- -------
Materials $18,727 $15,788
Work in Process 7,664 6,229
Finished Goods 24,079 20,730
------- -------
$50,470 $42,747
======= =======
3. Stockholders' Equity
Changes in the components of stockholders' equity for the three months ended
September 30, 1999 were as follows:
Net income $4,830
Foreign currency translation adjustments 692
Common stock and additional paid-in
capital effects of stock option activity 1,028
Purchases under stock repurchase plans (10,348)
-------
Total decrease in stockholders' equity ($3,798)
=======
<PAGE>
Datascope Corp. and Subsidiaries
Notes to Consolidated Financial Statements
(Unaudited, in thousands except per share data)
4. Earnings Per Share
In accordance with Financial Accounting Standard No. 128, "Earnings Per Share",
we disclose both Basic and Diluted Earnings Per Share. The reconciliation of
Basic Earnings Per Share to Diluted Earnings Per Share is as follows:
<TABLE>
<CAPTION>
- --------------------------- ---------------------------------------- ----------------------------------------
For Three Months Ended September 30, 1999 September 30, 1998
- --------------------------- ---------------------------------------- ----------------------------------------
Net Per Share Net Per Share
Basic EPS Earnings Shares Amount Earnings Shares Amount
- --------- -------- ------ --------- -------- ------ ---------
<S> <C> <C> <C> <C> <C> <C>
Earnings available to
common shareholders $4,830 15,206 $ 0.32 $2,681 15,417 $ 0.17
Diluted EPS
Options issued to employees -- 887 (0.02) -- 443 --
------ ------ ------ ------ ------ ------
Earnings available to
common shareholders
plus assumed conversions $4,830 16,093 $ 0.30 $2,681 15,860 $ 0.17
====== ====== ====== ====== ====== ======
</TABLE>
5. Comprehensive Income
We adopted Statement of Financial Accounting Standards No. 130, "Reporting
Comprehensive Income" (SFAS No. 130) in our fiscal year 1999. This statement
requires that we disclose comprehensive income and its components, including net
income, minimum pension liability adjustments, unrealized gains and losses on
available-for-sale securities and foreign currency translation adjustments. Our
comprehensive income for the three months ended September 30, 1999 and 1998 is
shown below. SFAS No. 130 has had no effect on our reported results of
operations or financial position.
-------- ------
1999 1998
-------- ------
Net earnings $4,830 $2,681
Foreign currency translation 692 1,377
-------- ------
Total comprehensive income $5,522 $4,058
======== ======
<PAGE>
Datascope Corp. and Subsidiaries
Notes to Consolidated Financial Statements
(Unaudited, in thousands except per share data)
6. Segment Information
Our business is the development, manufacture and sale of medical devices. We
have two reportable segments, Cardiac Assist / Monitoring Products and Collagen
Products / Vascular Grafts.
The Cardiac Assist / Monitoring Products segment includes intra-aortic balloon
pumps and catheters that are used in the treatment of vascular disease and
electronic physiological monitors that provide for patient safety and management
of patient care.
The Collagen Products / Vascular Grafts segment includes extravascular
hemostasis devices which are used to seal arterial puncture wounds to stop
bleeding after cardiovascular catheterization procedures and a proprietry line
of knitted and woven polyester vascular grafts and patches for reconstructive
vascular and cardiovascular surgery.
We have aggregated our product lines into two segments based on similar
manufacturing processes, distribution channels, regulatory environments and
customers. Management evaluates the revenue and profitability performance of
each of our product lines to make operating and strategic decisions. We have no
intersegment revenue. Net sales and operating margin are shown below.
<TABLE>
<CAPTION>
Cardiac Collagen
Assist / Products / Corporate
Monitoring Vascular and
Products Grafts Other Consolidated
- ---------------------------------------------------- ---------------- ---------------- -------------- ------------
Three months ended September 30,1999
- ----------------------------------------------------
<S> <C> <C> <C> <C>
Net sales to external customers $46,818 $16,682 -- $63,500
-------------------------------------------------------------
Operating margin $3,151 $3,491 ($459) $6,183
-------------------------------------------------------------
- ---------------------------------------------------
Three months ended September 30,1998
- ---------------------------------------------------
Net sales to external customers $43,558 $12,142 -- $55,700
-------------------------------------------------------------
Operating margin $3,102 $284 ($623) $2,763
-------------------------------------------------------------
Reconciliation to consolidated
earnings before income taxes : 1999 1998
- ------------------------------- ---- ----
Consolidated operating margin $6,183 $2,763
Interest income, net 865 1,066
Other (expense) income (48) 56
------ -------
Consolidated earnings before taxes $7,000 $3,885
====== =======
</TABLE>
<PAGE>
Datascope Corp. and Subsidiaries
Notes to Consolidated Financial Statements
(Unaudited, in thousands except per share data)
7. Restructuring Program
In the second half of fiscal 1999, we recorded pre-tax restructuring charges
totaling $3.43 million, or $0.14 per share, related to the following cost
reduction programs; (a) lease termination costs and asset writedowns related to
the closing of InterVascular's Clearwater, Florida leased manufacturing
facility, (b) employee severance expenses related to workforce reductions and
closing of the Clearwater facility and (c) writedown of certain Genisphere fixed
assets based on our revised market entry strategy for the 3DNA technology.
A summary of the restructuring charges and remaining liability at September 30,
1999 is shown below.
<TABLE>
<CAPTION>
Clearwater
Florida Genisphere
Plant Employee Asset
Closure Severance Writedown Total
------- ------------ ----------- -----
<S> <C> <C> <C> <C>
Fiscal 1999 restructuring charges $880 $1,674 $875 $3,429
Utilized through September 30, 1999 535 971 875 2,381
---- ------ ---- ------
Remaining liability at September 30, 1999 $345 $703 -- $1,048
==== ====== ==== ======
</TABLE>
<PAGE>
Part II:
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits
none
b. Reports on Form 8-K. No reports on Form 8-K have been filed during
the quarter for which this report is filed.
<PAGE>
Form 10-Q
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.
DATASCOPE CORP.
Registrant
By: \s\ Lawrence Saper
-------------------------------
Chairman of the Board and
Chief Executive Officer
By: \s\ Leonard S. Goodman
-------------------------------
Vice President, Treasurer and
Chief Financial Officer
Dated: November 12, 1999
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-START> JUL-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 2,482
<SECURITIES> 50,145
<RECEIVABLES> 57,895
<ALLOWANCES> (1,265)
<INVENTORY> 50,470
<CURRENT-ASSETS> 169,449
<PP&E> 121,654
<DEPRECIATION> (55,389)
<TOTAL-ASSETS> 269,183
<CURRENT-LIABILITIES> 44,535
<BONDS> 0
0
0
<COMMON> 167
<OTHER-SE> 210,490
<TOTAL-LIABILITY-AND-EQUITY> 269,183
<SALES> 63,500
<TOTAL-REVENUES> 63,500
<CGS> 24,124
<TOTAL-COSTS> 24,124
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 6
<INCOME-PRETAX> 7,000
<INCOME-TAX> 2,170
<INCOME-CONTINUING> 4,830
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,830
<EPS-BASIC> 0.32
<EPS-DILUTED> 0.30
</TABLE>
