<PAGE> 1
U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON DC 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
for the quarterly period ended March 31, 2000
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE
EXCHANGE ACT
for the transition period to
------------------ -----------------
Commission file number 1-7991
BIG SKY TRANSPORTATION CO.
(exact name of small business issuer as specified in its charter)
MONTANA 81-0387503
------- ----------
(state of other jurisdiction of incorporation (I.R.S. employer
or organization) identification no.)
1601 AVIATION PLACE
BILLINGS LOGAN INTERNATIONAL AIRPORT
BILLINGS, MT 59105
(406) 247-3910
----------------
(address of registrant's principal executive offices)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act during the past 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[ ]
State the number of shares outstanding of each of the issuer's classes of common
stock, as of the latest practicable date.
CLASS: 1996 Series Common Stock, no par value
SHARES OUTSTANDING: At March 31, 2000: 1,244,702
<PAGE> 2
BIG SKY TRANSPORTATION CO.
FORM 10-QSB
For the Period-Ended March 31, 2000
CONTENTS
<TABLE>
<CAPTION>
Part I Financial Information
- ------ ---------------------
<S> <C> <C>
Item 1. Financial Statements (condensed format):
Balance Sheets
March 31, 2000 and
June 30, 1999 .........................................................................3
Income Statements
Three and Nine months ended
March 31, 1999 and 2000................................................................4
Cash Flow Statements
Nine months ended March 31, 1999 and 2000..............................................5
Item 2. Management's Discussion and Analysis or Plan of Operation....................................6-11
Part II Other Information
Item 1. Legal Proceedings..............................................................................12
Item 2. Change in Security.............................................................................12
Item 3. Defaults Upon Senior Securities................................................................12
Item 4. Submission of Matter of a Vote of Security Holders.............................................12
Item 5. Other Information..............................................................................12
Item 6 Exhibits and Reports on Form 8-K............................................................13-14
</TABLE>
2
<PAGE> 3
PART I. FINANCIAL INFORMATION, ITEM 1.
Financial Statements
BIG SKY TRANSPORTATION CO.
Balance Sheets
<TABLE>
<CAPTION>
March 31, 2000 June 30, 1999
(unaudited) (audited)
-------------------------------------------
<S> <C> <C>
Assets
Current Assets
Cash $ 107,832 $ 220,294
Restricted Cash 150,539 137,500
Accounts Receivable, net 2,045,835 1,698,313
Income tax refund receivable 92,144 35,603
Expendable parts & supplies, at cost 649,599 444,882
Prepaid expenses 198,732 111,360
Assets held for liquidation 30,000 30,000
Deferred income taxes 356,765 69,000
--------------------- ---------------------
Total Current Assets 3,631,446 2,746,952
Property and Equipment, at Cost
Flight equipment 2,520,091 2,329,732
Facility under capital lease 656,541 456,185
Other property and equipment 483,868 509,031
--------------------- ---------------------
3,660,500 3,294,948
Accumulated depreciation & amortization (581,571) (592,357)
--------------------- --------------------
Net Property & Equipment 3,078,929 2,702,591
--------------------- --------------------
Deposits and Other Assets 93,205 176,991
-------------------- --------------------
Total Assets $ 6,803,580 $ 5,626,534
==================== ====================
Liabilities & Stockholders' Equity
Current Liabilities
Notes payable $ 1,327,535 $ 700,000
Current installments of long-term debt 180,068 190,169
Current installments of capital lease 20,219 267,216
Accounts payable 1,200,653 856,073
Accrued expenses 946,433 596,437
Traffic balances & unused tickets 928,178 296,930
-------------------- --------------------
Total Current Liabilities 4,603,086 2,906,825
-------------------- ---------------------
Long-Term Debt, Excluding Current Installments 1,062,107 1,192,981
Capital Lease, Excluding Current Installments 554,533 -
Stockholders' Equity
Common stock of no par value;
(20,000,000 shares authorized, 1,264,702 and 1,265,302
shares issued) 815,375 814,225
Additional paid-in capital 242,034 242,034
Retained earnings (accumulated deficit) (449,702) 494,322
Less treasury stock (20,000 shares, at cost) (23,853) (23,853)
--------------------- --------------------
Stockholders' Equity 583,854 1,526,728
==================== ====================
Total Liabilities & Stockholder's Equity $ 6,803,580 $ 5,626,534
==================== ====================
</TABLE>
3
<PAGE> 4
BIG SKY TRANSPORTATION CO.
Income Statements
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
March 31, March 31,
2000 1999 2000 1999
--------------- -------------- --------------- -------------
<S> <C> <C> <C> <C>
Operating Revenues:
Passenger $ 2,560,867 $ 2,073,826 $ 7,506,575 $ 5,497,823
Cargo 57,675 58,093 173,972 162,424
Public service 2,743,703 2,390,128 7,899,402 5,273,809
Other 28,421 18,679 90,847 94,762
------------ ------------ ------------ ------------
Total 5,390,666 4,540,726 15,670,796 11,028,818
------------ ------------ ------------ ------------
Operating Expenses:
Flying 2,311,446 1,836,830 6,713,618 4,526,945
Maintenance 1,549,398 837,008 4,182,265 1,946,120
Traffic 1,163,542 1,064,490 3,547,324 2,352,290
Marketing 397,635 336,035 1,138,548 836,297
General/Admin 319,462 315,297 967,689 717,047
Depreciation 77,981 74,648 246,217 155,889
------------ ------------ ------------ ------------
Total 5,819,464 4,464,308 16,795,661 10,534,588
------------ ------------ ------------ ------------
Operating income (loss) (428,798) 76,418 (1,124,865) 494,230
Other Income (Expense)
Interest, net (59,667) (54,556) (170,679) (79,402)
Capital gain (loss) (50) 588 50 (4,230)
------------ ------------ ------------ ------------
Total (59,717) (53,968) (170,629) (83,632)
------------ ------------ ------------ ------------
Income (loss) before taxes (488,515) 22,450 (1,295,494) 410,598
Income tax provision
(benefit) (62,049) 11,310 (351,470) 170,011
------------ ------------ ------------ ------------
Net income (loss) $ (426,466) $ 11,140 $ (944,024) $ 240,587
============ ============ ============ ============
Per share data:
Basic earnings (loss) per
common share $ (.34) $ .01 $ (.76) $ .21
============ ============ ============ ============
Diluted earnings (loss)
per common share $ (.34) $ .01 $ (.76) $ .20
============ ============ ============ ============
</TABLE>
4
<PAGE> 5
BIG SKY TRANSPORTATION CO.
Cash Flow Statements
(unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
March 31,
2000 1999
----------- -----------
<S> <C> <C>
Net cash provided (used):
By operations $ (284,003) $ 497,557
By investing activities (308,312) (1,888,877)
By financing activities 479,853 1,232,432
----------- -----------
Decrease in cash (112,462) (158,888)
Cash at beginning of period 220,294 512,670
----------- -----------
Cash at end of period $ 107,832 $ 353,782
=========== ===========
</TABLE>
5
<PAGE> 6
PART I. FINANCIAL INFORMATION, ITEM 2.
BIG SKY TRANSPORTATION CO.
Management's Discussion and Analysis or
Plan of Operation
Summary of Airline Operating Statistics:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
March 31, March 31,
2000 1999 2000 1999
------------------------------- --------------------------
<S> <C> <C> <C> <C>
Passengers carried 30,365 24,681 94,341 64,017
Average passenger trip (miles) 285 256 272 255
Revenue passenger miles 8,654,524 6,314,843 25,629,846 16,331,991
Available seat miles 26,939,777 22,032,932 77,407,842 50,584,745
Passenger load factor (%) 32.13 28.66 33.11 32.29
Aircraft miles 1,417,883 1,120,369 4,074,097 2,587,954
Yield per revenue passenger mile
(cents) 29.59 32.84 29.30 33.66
Freight pounds enplaned 95,344 78,165 241,729 125,046
Operating cost per available seat
mile (cents) 21.60 20.26 21.70 20.83
Operating break-even load factor
(%) 34.68 28.18 35.49 30.84
</TABLE>
6
<PAGE> 7
Analysis of Results for the Three Months Ended
March 31, 1999 and 2000:
On November 15, 1998 Big Sky Transportation Co. ("Big Sky") began service under
an Essential Air Service ("EAS") contract with the U.S. Department of
Transportation ("DOT") to eight communities in the south central U.S. as
reported in an SEC Form 8-K filing dated October 9, 1998. That service, referred
to as the "DFW" operations, resulted in a large increase in the size and scope
of Big Sky's business. Operating results for the three and nine month periods
ending March 31, 2000 include these services. Operating results for the prior
year three and nine-month periods include DFW operations only from November 15,
1998 to March 31, 1999. Accordingly, Big Sky's results for the quarters ending
March 31, 1999 and 2000 derive from a comparable year-over-year scope of
operations.
<TABLE>
<CAPTION>
Three Months Ended
March 31,
2000 1999
(unaudited) (unaudited) Change
---------------- ---------------- ------------------
<S> <C> <C> <C>
Operating Revenues:
Passenger $2,560,867 $2,073,826 $487,041
Cargo 57,675 58,093 (418)
Public service 2,743,703 2,390,128 353,575
Other 28,421 18,679 9,742
---------------- ---------------- ------------------
Total $5,390,666 $4,540,726 $849,940
================ ================ ==================
</TABLE>
Total operating revenues in the third quarter of 2000 totaled $5.4 million, as
compared to $4.5 million in the same quarter of 1999. Passenger revenues of $2.6
million in the current quarter were $487,000 or 23% greater than the same
quarter last year. Revenue passengers during the quarter ending March 31, 2000
totaled 30,365, an increase of 5,684, or 23%, more than the same quarter in
1999. The average passenger fare during the quarter was $84.34 compared to
$84.03 during the same quarter last year. The increase in passenger revenues is
primarily attributable to new service, initiated February 14, 2000, from
Billings to Denver via Bozeman, and Dallas to Denver via Enid, Oklahoma and
Ponca City, Oklahoma. These flights, referred to collectively as the "Denver"
flights, effectively connect Big Sky's Billings operations with its DFW
operations, providing opportunities for both increased passenger loads and a
means to cycle aircraft from DFW to Billings for maintenance.
Public service revenues in the third quarter of 2000 were $2.7 million compared
to $2.4 million during the same quarter of 1999 - an increase of 15%. The
year-over-year increase is attributable to a higher flight completion
performance in 2000 compared to 1999.
7
<PAGE> 8
<TABLE>
<CAPTION>
Three Months Ended
March 31,
2000 1999
(unaudited) (unaudited) Change
---------------- ---------------- --------------------
<S> <C> <C> <C>
Operating Expenses
Flying $2,311,446 $1,836,830 $ 474,616
Maintenance 1,549,398 837,008 712,390
Traffic 1,163,542 1,064,490 99,052
Marketing 397,635 336,035 61,600
General/Admin. 319,462 315,297 4,165
Depreciation 77,981 74,648 3,333
---------------- ---------------- --------------------
Total $5,819,464 $4,464,308 $1,355,156
================ ================ ====================
</TABLE>
Total operating expenses in the third quarter totaled $5.8 million compared to
$4.5 million in the third quarter of 1999, an increase of 30%.
Flight operations expenses increased $475,000 or 26%, as compared to the third
quarter of 1999. The reasons for this increase were flight crew training costs
related to crew shortages, increases in fuel expense attributable to higher fuel
prices and greater consumption due to expanded services, and increased aircraft
lease expense.
Maintenance expense increased by $712,000, or 85%, over the third quarter of
1999. The increase resulted from an expansion of the fleet to 14 aircraft as of
March 31, 2000 from 12 aircraft as of March 31, 1999 and engine maintenance
expense in excess of engine reserves. In an effort to better manage maintenance
expense, management has taken steps to shift maintenance work from outside
vendors to in-house personnel. Management believes that conducting maintenance
activities in-house will provide opportunities to better manage maintenance
expenses. Actual results may vary depending primarily on the incidence of
non-scheduled maintenance events that are outside Big Sky's control.
Passenger service and sales expenses increased $99,000 (9%) and $62,000 (18%),
respectively over the third quarter of 1999. These increases are consistent with
increased passenger traffic detailed the table above.
8
<PAGE> 9
Analysis of Results for the Nine Months Ended
March 31, 1999 and 2000
<TABLE>
<CAPTION>
Nine Months Ended
March 31,
2000 1999
(unaudited) (unaudited) Change
--------------- ---------------- ---------------
<S> <C> <C> <C>
Operating Revenues:
Passenger $ 7,506,575 $5,497,823 $2,008,752
Cargo 173,972 162,424 11,548
Public service 7,899,402 5,273,809 2,625,593
Other 90,847 94,762 (3,915)
--------------- ------------- ---------------
Total $15,670,796 $11,028,818 $4,641,978
=============== ============= ===============
</TABLE>
Total revenues of $15.7 million for the nine months ending March 31, 2000 were
$4.6 million, or 42%, greater than the nine months ending March 31, 1999.
Approximately 82% of the increase came from the DFW operation for the full
period this year compared to 4 1/2 months of DFW operations in 1999's financial
results. The remaining increase is due to increased passenger revenues in the
Montana region and new service associated with the Denver flights. The increase
in the Montana revenues came from new services, growth in existing markets, and
Big Sky's code-share relationship with Northwest Airlines. Overall, passenger
and public service revenues increased $2.0 million (37%) and $2.6 million (50%),
respectively, for the nine months ending March 31, 2000, as compared to the
nine-month period for the previous year. The total number of revenue passengers
in the current year-to-date period was 47% greater than the prior year.
<TABLE>
<CAPTION>
Nine Months Ended
March 31,
2000 1999
(unaudited) (unaudited) Change
------------- ----------- -----------
<S> <C> <C> <C>
Operating Expenses
Flying $ 6,713,618 $ 4,526,945 $ 2,186,673
Maintenance 4,182,265 1,946,120 2,236,145
Traffic 3,547,324 2,352,290 1,195,034
Marketing 1,138,548 836,297 302,251
General/Admin 967,689 717,047 250,642
Depreciation 246,217 155,889 90,328
----------- ----------- -----------
Total $16,795,661 $10,534,588 $ 6,261,073
=========== =========== ===========
</TABLE>
Total operating expenses for the year-to-date period ending March 31, 2000
totaled $16.8 million compared to $10.5 million in the prior year, an increase
of 59%.
9
<PAGE> 10
Flight operations expenses increased by $2.2 million, or 48%, in the nine months
ending March 31, 2000 as compared to the nine-month period ending March 31,
1999. The increase resulted from fleet expansion, additional flight crews, fuel,
and other related expenses for the DFW operation and other expanded services in
the Montana region. The flight crew shortage, as reported in the first and
second quarter 10-QSB's, also contributed to the increase.
Maintenance expenses were $2.2 million, or 115%, greater in the current nine
month period as compared to the prior year. The increase resulted from expanded
fleet and aircraft utilization associated with new and expanded services, and
non-scheduled engine maintenance and related expense.
Passenger service and sales expenses for the nine-month period ending March 31,
2000 increased $1.2 million (51%) and $302,000 (36%), respectively, over the
prior year-to-date period. These increases are attributable to the DFW operation
and are consistent with increased passenger traffic detailed the table above.
Advertising expense for the DFW operation also contributed to the increase in
sales expense.
General and administrative expenses in the nine months ending March 31, 2000
were $251,000, or 35%, greater than the nine months ending March 31, 1999. The
increase resulted from additional administrative personnel and professional fees
associated with the expanded services.
Depreciation expense was $90,000, or 58%, greater in the current nine-month
period as compared to 1999. This increase is primarily attributable to ground
support equipment, maintenance tooling, rotable spare parts, and additional
computer hardware and software purchased to support the expanded fleet and
operations. Also contributing to the increase was nine months of depreciation on
Big Sky's owned aircraft in 2000. In comparison, Big Sky recorded six months of
depreciation expense in 1999.
Net interest expense increased $5,000 and $91,000 for the three and nine month
periods ending March 31, 2000, respectively, over the same periods in the prior
year. These increases are attributable to increased use of Big Sky's line of
credit and debt service of a construction loan related to the building of a new
corporate office.
The quarter ending March 2000 generated an operating loss of $429,000, and a net
loss of $426,000, compared to operating income of $76,000 and net income of
$11,000 during the same period in 1999. The current quarter's operating loss is
due primarily to a seasonal decline in passenger revenues during the first seven
weeks of the period in addition to higher maintenance, fuel costs and crew
training.
10
<PAGE> 11
For the nine months ending March 31, 2000, the operating loss was $1.1 million
and the net loss was $944,000. This compares to operating income of $494,000 and
net income of $241,000 in the 1999 nine-month period. The abnormal number of
non-scheduled engine maintenance repairs and related costs during the current
year-to-date period was the primary reason for the negative operating results.
The economic effect of these events including repairs, rental expense, and loss
of revenue in the period was approximately $500,000. In addition to the
non-scheduled maintenance described above, the nine-month results were affected
by the pilot shortage problem described in the Form 10-QSB for the quarter
ending December 31, 1999. The pilot shortage problem, resulting in lost revenue
due to cancelled flights, has continued throughout the year. The cost of
addressing pilot shortages was approximately $700,000.
Liquidity and Capital Resources:
A review of current liquidity and capital resources are as follows:
<TABLE>
<CAPTION>
Working Capital Current Ratio
--------------- -------------
<S> <C> <C>
Year-end June 30, 1999 $ (159,873) 0.95:1
Period-ending March 31, 2000 $ (971,640) 0.79:1
<CAPTION>
Long-term Debt Stockholder's
(excluding current portion) Equity
------------------------- ------
<S> <C> <C>
Year-end June 30, 1999 $1,192,981 $ 1,526,728
Period-ending March 31, 2000 $1,616,640 $ 583,854
</TABLE>
Cash and cash equivalents totaled $108,000 at March 31, 2000, a decease of
$112,000. Cash used in operations for the nine months ended March 31, 2000 was
$284,000. Cash used in investing activities was $308,000 during the period.
Big Sky has established a line of credit through First Interstate Bank and Trust
Co. of Billings for an amount of up to $1,500,000. Big Sky uses the line to
supplement timing differences in cash flows. The maximum amount drawn on the
line of credit during the quarter was $1,484,448. The large losses over the past
nine-months have required Big Sky to increase the use of the line of credit.
Management believes that these losses were caused by an abnormal number of
problems, and therefore believes that the line of credit is adequate for Big
Sky's current needs. Management is evaluating options to increase Big Sky's
capitalization to reduce its reliance on the line of credit.
A new two-year EAS contract for the DFW operation became effective December 1,
1999. The contract increases Big Sky's annual subsidy for this operation by
approximately 5% per year over the previous contract. The EAS contract that
covers the Montana communities expires on November 30, 2000.
11
<PAGE> 12
PART II. OTHER INFORMATION
BIG SKY TRANSPORTATION CO.
Item 1. Legal Proceedings
There are no pending legal proceedings in which Big Sky is involved.
Item 2. Changes in Securities and Use of Proceeds
No actions have been taken with respect to the modification of any
class of security other than for exchange for outstanding securities.
No matters have arisen with respect to the use of proceeds from any
securities offering.
Item 3. Defaults Upon Senior Securities
There have been no defaults in the payments of any securities.
Item 4. Submission of Matter to a Vote of Security Holders
On February 29, 2000, Big Sky conducted its Annual Meeting of
Shareholders. As of January 14, 2000, the record date, there were
1,244,462 common shares outstanding and entitled to vote. At the
meeting, the following directors were elected to serve a one-year
term: Jon Marchi, Kim B. Champney, Jack K. Daniels, Craig Denney, Alan
D. Nicholson and Stephen D. Huntington. The minimum number of shares
voting for any director was 815,260. Total number of votes withheld or
abstained, including broker nonvotes, was 46,780. The shareholders
ratified the appointment of Eide Bailly & Co. as Big Sky's auditors
for the 2000-2001 fiscal year by a vote of 861,380. The total number
of votes withheld or abstained including broker nonvotes was 180. The
shareholders also voted to adopt the 1999 Long Term Incentive and
Stock Option Plan by a vote of 654,717. The total number of votes
withheld or abstained including broker nonvotes was 158,023.
Item 5. Other Information
On March 24, 2000, the Board of Directors elected Barbara Nemecek as a
Director of Big Sky, effective April 1, 2000, to serve until the next
Annual Meeting of Shareholders. Dr. Nemecek is a Professor of
Marketing and Dean of the College of Business Administration at
Montana State University-Billings. Dr. Nemecek will also serve as
Chair of the Audit Committee.
12
<PAGE> 13
Item 6. Exhibits and reports on Form 8-K
A) Exhibits
2: The Supplement to Disclosure Statement and Third Plan of
Reorganization filed August 30, 1991 on Company's Form 8-K
report and incorporated herein by reference.
3: (I) and (II) Articles of Incorporation Incorporating
Amendments and Restated Bylaws were filed as Exhibits 2.1 and
2.2 to Form 8-A Registration filed August 23, 1997, and
incorporated herein by reference.
4: (a) Specimen certificate for shares of 1996 Series Common
Stock was filed as Exhibit 1.1 to the 8-A Registration filed
August 23, 1997, and incorporated herein by reference.
10: (a) DOT Order 98-9-12, issued September 14, 1998, selected
Big Sky Airlines as the Essential Air Service carrier for
seven Montana Points with a hub at Billings, Montana, and one
daily trip between Sidney and Bismarck, through November 30,
2000. See Exhibit 10(a) to Form 10-K filed September 25, 1998,
incorporated herein by reference.
(b) DOT Order 98-10-9, issued October 7, 1998 selected Big
Sky Airlines as the Essential Air Service carrier for eight
points in Arkansas, Oklahoma and Texas, with a hub at Dallas,
Texas, through November 30, 1999. See Exhibit 28 to Form
10-QSB filed November 16, 1998, incorporated herein by
reference.
(c) DOT Order 99-12-28, issued December 29, 1999 selected
Big Sky Airlines as the Essential Air Service carrier for
seven points in Arkansas, Oklahoma and Texas, with a hub at
Dallas, Texas, through November 30, 2001. The referenced Order
was filed with Big Sky's Form 10-QSB filed February 14, 2000.
11: A new method for computing earnings per share has been
established by Statement of Accounting Standards No. 128
"Earnings per Share". The new standard requires presentation
of two new amounts, basic and diluted earnings per share. This
standard has been applied retroactively.
15: The accompanying unaudited condensed financial statements
have been prepared by Big Sky in accordance with its
understanding of the rules and regulations of the Securities
and Exchange Commission. These financial statements reflect,
in the opinion of management, for all adjustments (consisting
only of recurring accruals) for fair presentation of
13
<PAGE> 14
the results of operations for the interim periods presented.
However, these financial statements have been prepared in
accordance with instructions to Form 10-QSB and therefore,
do not include all information and footnotes necessary for a
fair presentation of financial position, statement of
operations and cash flows in conformity with
generally-accepted accounting principles. Results of
operations for the three and nine months ended March 31,
2000 and 1999 are not necessarily indicative of the results
to be expected for the full year. Management recommends that
these interim financial statements be read together with the
financial statements and notes included in Big Sky's latest
annual report on Form 10-KSB.
18: No change.
19: Not applicable
20: Not applicable
22: Not applicable
23: Not applicable
24: Not applicable
25: Not applicable
27: Not applicable
B) Reports on Form 8-K
No reports on Form 8-K were filed during the March 31, 2000 quarter.
C) Item 27 Financial Data Schedule
(Only for filings via EDGAR)
14
<PAGE> 15
BIG SKY TRANSPORTATION CO.
Signature
The Registrant, by the undersigned, has signed this report in accordance with
the requirements of the Securities Exchange Act of 1934.
BIG SKY TRANSPORTATION CO.
- --------------------------
Registrant
By: /s/ Kim B. Champney
--------------------
President & CEO
May 15, 2000
15
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 258,371
<SECURITIES> 0
<RECEIVABLES> 2,145,179
<ALLOWANCES> 7,200
<INVENTORY> 649,599
<CURRENT-ASSETS> 3,631,446
<PP&E> 3,660,500
<DEPRECIATION> 581,571
<TOTAL-ASSETS> 6,803,580
<CURRENT-LIABILITIES> 4,603,086
<BONDS> 1,616,640
0
0
<COMMON> 815,375
<OTHER-SE> (231,521)
<TOTAL-LIABILITY-AND-EQUITY> 6,803,580
<SALES> 0
<TOTAL-REVENUES> 15,670,796
<CGS> 0
<TOTAL-COSTS> 16,795,661
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 170,879
<INCOME-PRETAX> (1,295,494)
<INCOME-TAX> (351,470)
<INCOME-CONTINUING> (944,024)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (944,024)
<EPS-BASIC> (0.76)
<EPS-DILUTED> (0.76)
</TABLE>
