United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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, 1997
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from...............to...............
Commission file number 0-9378
ENEX RESOURCES CORPORATION
(Exact name of small business issuer as specified in its charter)
Delaware 93-0747806
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Suite 200, Three Kingwood Place
Kingwood, Texas 77339
(Address of principal executive offices)
Issuer's telephone number (713) 358-8401
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the 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
(APPLICABLE ONLY TO CORPORATE ISSUERS)
State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date.
Class Outstanding at May 10, 1997
Common Stock, $.05 par value 1,374,156
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ENEX RESOURCES CORPORATION
CONSOLIDATED BALANCE SHEETS
- --------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
ASSETS 1997 1996
--------------------- ---------------------
(Unaudited)
CURRENT ASSETS:
<S> <C> <C>
Cash and certificates of deposit $ 2,999,227 $ 1,862,281
Accounts receivable:
Managed limited partnerships 526,803 522,283
Oil and gas sales 914,370 1,242,923
Joint owner 188,672 178,291
Prepaid expenses & other current assets 866,538 806,443
Deferred tax asset - current portion 111,953 105,464
--------------------- ---------------------
Total current assets 5,607,563 4,717,685
--------------------- ---------------------
PROPERTY:
Oil & gas properties (Successful efforts
accounting method) Proved mineral
interests and related equipment & facilities:
Direct ownership 6,509,217 6,940,811
Derived from investment in managed
limited partnerships 9,112,089 9,130,403
Furniture, fixtures and other (at cost) 366,291 350,019
--------------------- ---------------------
Total property 15,987,597 16,421,233
--------------------- ---------------------
Less accumulated depreciation,
depletion and amortization 7,950,674 7,988,452
--------------------- ---------------------
Property, net 8,036,923 8,432,781
--------------------- ---------------------
OTHER ASSETS
Receivable from managed limited partnerships 917,285 1,153,267
Deferred tax asset 611,439 635,947
Other accounts receivable 106,797 131,004
Deferred organization expenses and other 4,079 4,694
--------------------- ---------------------
Total other assets 1,639,600 1,924,912
--------------------- ---------------------
TOTAL $ 15,284,086 $ 15,075,378
===================== =====================
</TABLE>
See accompanying notes to consolidated financial statements.
- -------------------------------------------------------------------------------
I-1
<PAGE>
ENEX RESOURCES CORPORATION
CONSOLIDATED BALANCE SHEETS
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
LIABILITIES AND STOCKHOLDER'S EQUITY 1997 1996
-------------------- ---------------------
(Unaudited)
CURRENT LIABILITIES:
<S> <C> <C>
Accounts payable $ 895,664 $ 748,283
COMMITMENTS AND
CONTINGENT LIABILITIES - -
--------------------- -----------------------
TOTAL LIABILITIES 895,664 748,283
--------------------- ---------------------
MINORITY INTEREST 1,445,696 1,564,058
--------------------- -----------------------
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par value;
$5,000,000 shares authorized;
no shares issued
Common stock, $.05 par value;
10,000,000 shares authorized;
1,673,359 shares issued at March 31, 1997 and
at December 31, 1996 83,668 83,668
Additional paid-in capital 10,128,300 10,128,300
Retained earnings 4,876,362 4,374,710
Less cost of treasury stock;
357,830 shares at March 31, 1997 and
326,830 shares at December 31, 1996 (2,145,604) (1,823,641)
--------------------- -----------------------
TOTAL STOCKHOLDERS' EQUITY 12,942,726 12,763,037
--------------------- -----------------------
TOTAL $ 15,284,086 $ 15,075,378
===================== =======================
</TABLE>
See accompanying notes to consolidated financial statements.
- -------------------------------------------------------------------------
I-2
<PAGE>
ENEX RESOURCES CORPORATION
STATEMENTS OF OPERATIONS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED)
THREE MONTHS ENDED
-----------------------------------------------
March 31, March 31,
1997 1996
----------------- -----------------
REVENUES:
<S> <C> <C>
Oil and gas sales $ 1,699,330 $ 1,599,903
Gas plant sales 347,786 212,575
Other revenues 263,026 69,530
----------------- -----------------
Total revenues 2,310,142 1,882,008
----------------- -----------------
EXPENSES:
General and administrative 416,780 477,243
Lease operating and other expenses 571,482 586,001
Gas purchases and plant operating expenses 279,940 159,309
Production taxes 102,230 91,699
Depreciation, depletion and amortization 235,893 263,451
Impairment of assets - 3,909,986
Interest expense - 10,603
----------------- -----------------
Total expenses 1,606,325 5,498,292
----------------- -----------------
Earnings (loss) before minority interest
and income taxes 703,817 (3,616,284)
----------------- -----------------
MINORITY INTEREST (184,144) 19,145
----------------- -----------------
EARNINGS (LOSS) BEFORE INCOME TAXES 519,673 (3,597,139)
----------------- -----------------
INCOME TAX EXPENSE (CREDIT):
Deferred 18,021 (26,602)
----------------- -----------------
NET INCOME (LOSS) $ 501,652 $ (3,570,537)
================= =================
PRIMARY EARNINGS (LOSS) PER SHARE $ 0.35 $ (2.62)
================= =================
FULLY DILUTED EARNINGS (LOSS) PER SHARE $ 0.35 $ (2.62)
================= =================
</TABLE>
See accompanying notes to consolidated financial statements.
- ------------------------------------------------------------------------------
I-3
<PAGE>
ENEX RESOURCES CORPORATION
STATEMENTS OF CASH FLOWS
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
(UNAUDITED) THREE MONTHS ENDED
----------------------------------------
MARCH 31, MARCH 31,
1997 1996
------------------- ------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net income (loss) $ 501,652 $ (3,570,537)
------------------- ------------------
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Depreciation, depletion and amortization 235,893 263,451
Impairment of assets - 3,909,986
Increase in deferred tax asset 18,021 (26,602)
Noncash expense from stock purchase plan - 100,363
Gain from sale of property (237,306) (54,416)
Minority interest share of net income after distributions (118,362) (199,128)
Changes in assets and liabilities:
Decrease in accounts receivable 573,841 323,378
(Increase) in prepaid expenses & other assets (60,109) (175,726)
Increase (decrease) in accounts payable 147,381 (560,182)
------------------- ------------------
Net cash provided by operating activities 1,061,011 10,587
------------------- ------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of property 440,000 69,051
Property additions (42,102) (312,404)
Receipt of payment on notes receivable from
managed limited partnerships - 9,484
------------------- ------------------
Net cash provided (used) by investing activities 397,898 (233,869)
------------------- ------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of long-term debt - (705,000)
Purchase of treasury stock (321,963) -
Proceeds from exercise of stock options - 100,000
------------------- ------------------
Net cash used by financing activities (321,963) (605,000)
------------------- ------------------
NET INCREASE (DECREASE) IN CASH 1,136,946 (828,282)
CASH AT BEGINNING OF YEAR 1,862,281 1,007,144
------------------- ------------------
CASH AT END OF QUARTER $ 2,999,227 $ 178,862
=================== ==================
</TABLE>
See accompanying notes to financial statements.
- ------------------------------------------------------------------------------
I-4
<PAGE>
ENEX RESOURCES CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 1997
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General - Enex Resources Corporation (the "Company") acquires interests
in producing oil and gas properties and manages investment limited
partnerships. At March 31, 1997, the Company served as managing general
partner for the 39 publicly offered limited partnerships of Enex
Program I Partners, L.P., Enex Oil & Gas Income Programs II, III, IV,
V, VI, Enex Income and Retirement Fund, Enex 88-89 Income and
Retirement Fund, and Enex 90-91 Income and Retirement Fund,
(collectively, the "Partnerships"). The Partnerships own $142 million,
at cost, of proved oil and gas properties in which the Company
generally has a 10% interest as the general partner in addition to its
proportional interest as a limited partner of approximately 5% to 55%.
Accumulated depreciation and depletion for such oil and gas properties
at March 31, 1997 was $129 million.
The interim financial information included herein is unaudited;
however, such information reflects all adjustments (consisting solely
of normal recurring adjustments) which are, in the opinion of
management, necessary for a fair presentation of results for the
interim periods.
Income Per Share - Primary and fully diluted earnings per share are
based on the weighted average number of common shares outstanding and
common stock equivalents outstanding during the respective periods.
Common share equivalents include common stock options. Common share
equivalents are not included in the "Quarter ended March 31, 1996"
number of shares because they are antidilutive. The weighted average
number of shares used to compute primary and fully diluted earnings per
common share was:
Primary Fully Diluted
------------- --------------
Quarter ended March 31, 1997 1,423,444 1,423,444
Quarter ended March 31, 1996 1,360,560 1,360,560
2. DEBT
The long-term debt at March 31, 1996 consisted of a $145,000 loan from
a bank under a $2.8 million revolving line of credit collateralized by
substantially all of the assets of the Company. The bank loan proceeds
were primarily utilized to purchase producing oil and gas properties
and additional interests in managed limited partnerships. The bank loan
bore interest at a rate of prime plus three-quarters of one percent
(3/4%) or an average rate of 9.00% in the first quarter of 1996.
Principal payments of $705,000 were made in the first quarter of 1996.
The debt was completely repaid in May, 1996.
I-5
<PAGE>
3. COMMITMENTS AND CONTINGENT LIABILITIES
As general partner, the Company is contingently liable for all debts
and actions of the managed limited partnerships. However, in
management's opinion, the existing assets of the limited partnerships
are sufficient to satisfy any such partnership indebtedness.
4. NOTES RECEIVABLE FROM MANAGED LIMITED PARTNERSHIPS
On December 29, 1994, in order to partially finance the purchase of a
property acquisition, a managed limited partnership borrowed a net
$60,572 from the Company. The resulting note receivable bore interest
at the Company's borrowing rate of prime plus three-fourths of one
percent, or a weighted average 9.00% in the first quarter of 1996.
Principal payments of $9,484 were received on the note receivable in
the first quarter of 1996. The note was completely repaid in the
fourth quarter of 1996.
5. IMPAIRMENT OF ASSETS
The Financial Accounting Standards Board has issued Statement of
Financial Accounting Standard ("SFAS") No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be
Disposed Of," which requires certain assets to be reviewed for
impairment whenever events or circumstances indicate the carrying
amount may not be recoverable. This standard requires the evaluation of
oil and gas assets on an individual property basis versus a
company-wide basis. Prior to this pronouncement, the Company assessed
properties on an aggregate basis. Upon adoption of SFAS 121, the
Company began assessing properties on an individual basis, wherein
total capitalized costs may not exceed the property's fair market
value. The fair market value of each property was determined by H.J.
Gruy and Associates, Inc. ("Gruy"). To determine the fair market value,
Gruy estimated each property's oil and gas reserves, applied certain
assumptions regarding price and cost escalations, applied a 10%
discount factor for time and certain discount factors for risk,
location, type of ownership interest, category of reserves, operational
characteristics, and other factors. In the first quarter of 1996, the
Company implemented SFAS 121 and recognized a non-cash impairment
provision of $3,909,986 for certain oil and gas properties and other
assets due to changes in the overall market for the sale of oil and gas
and significant decreases in the projected production from certain of
the Company's oil and gas properties.
I-6
<PAGE>
6. INCOME TAXES
The Company recognized deferred tax expense of $18,021 in the first
quarter of 1997 and a deferred tax credit of $26,602 in the first
quarter of 1996.
Deferred income taxes reflect the net tax of temporary differences
between the carrying amount of assets and liabilities for financial
reporting purposes and the amount used for income tax purposes. The tax
effects of significant items comprising the Company's net deferred tax
asset as of March 31, 1997, are as follows:
<TABLE>
<CAPTION>
Difference between tax and book net property
<S> <C>
basis $ 319,055
Difference between basis in managed limited
partnerships for financial reporting purposes
and income tax purposes 3,972,432
Intangible drilling costs which remain
capitalized for financial reporting purposes
which were deducted for federal income tax (85,485)
purposes
Net operating loss carryforward 1,001,481
(expires 2009-2011)
Allowance for bad debts not recognized for
income tax purposes 61,997
Timing difference from lawsuit contingency 1,001,481
Other, net 5,619
------------------
Gross deferred tax asset 5,223,628
Valuation allowance (4,500,236)
------------------
Net deferred tax asset recognized $ 723,392
==================
</TABLE>
The difference in basis of the managed limited partnerships is primarily the
result of differences in the underlying properties of the partnerships. The
valuation allowance reserves the net deferred tax asset due to uncertainties
inherent in the oil and gas market. The Company estimated the amount of future
tax benefit to be received from the deferred tax asset using estimated future
net revenues and future tax expenses. The remaining amount of the gross deferred
tax asset is reserved by a valuation allowance. The valuation allowance
increased by $152,543 in the first quarter of 1997. I-7
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR
PLAN OF OPERATION
In the first quarter of 1997, higher oil and gas prices increased oil and gas
revenues and earnings. The Company earned net income of $501,652 or $.35 per
share on total revenues of $2,310,142. In the first quarter of 1996, the Company
recorded a $3.9 million noncash write-down of the Company's assets in accordance
with the Financial Accounting Standards Board's Statement of Financial
Accounting Standard ("SFAS") No. 121, "Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to be Disposed Of," resulting in a
loss of $3.6 million for the first quarter of 1996. Excluding this charge, net
income was $280,989 or $.21 per share in the first quarter of 1996 .
Liquidity and Capital Resources
The higher oil and gas prices in the first quarter of 1997 increased the
Company's cash flow from operations. Cash flow from operating activities
increased to $1,061,011 in the first quarter of 1997 as compared with $10,587
provided by operations in the same period of 1996. This represents an increase
of $1,050,424. The higher cash flow was primarily the result of higher revenues
from the sale of oil and gas coupled with a $147,381 increase in accounts
payable in the first quarter of 1997 as compared to a $560,182 decrease in
accounts payable in 1996. To this cash flow from operations, proceeds from the
sale of property added $440,000 in the first quarter of 1997.
The Company utilized a portion of its cash flow to purchase treasury stock,
accumulating $321,963 in the first quarter of 1997. In the first quarter of
1996, net payments received on notes receivable from managed limited
partnerships added $9,484 and proceeds from the exercise of stock options added
$100,000. In 1996, the Company used its cash flow to repay the bank loan and
purchase additional reserves and limited partnership interests. The Company
repaid $705,000 of the bank loan in the first quarter of 1996. The remaining
$145,000 debt was repaid in May, 1996. A total of $309,805 was used for the
improvement of proved oil and gas properties and the acquisition of limited
partnership interests in 1996. The Company utilized the funds to purchase
partnership interests and drill wells in the Schlensker and Dent acquisitions.
Working capital was $4,711,899 at March 31, 1997 as compared to $3,969,402 at
December 31, 1996. At March 31, 1997, the Company's current ratio was 6.26 to
one and the Company had no long term debt.
Results of Operations
The Company earned net income of $501,652 in the first quarter of 1997. In 1996,
the Company recorded a net loss of $3,570,537, or $2.62 per share. This includes
a $3,909,986 nonrecurring charge due to the implementation of SFAS 121.
Excluding this charge, net income was $280,989 or $.21. The increase in net
income in 1997 was primarily attributable to higher prices for oil and gas.
I-8
<PAGE>
Oil and gas sales were $1,699,330 in the first quarter of 1997 versus $1,599,903
in the corresponding period of 1996. This increase of $99,427 was due primarily
to higher oil and gas prices in 1997. Gas revenues increased by $207,186 or 26%
from $793,740 in the first quarter of 1996 to $1,000,926 in the first quarter of
1997. This increase was primarily a result of a 25% increase in average gas
prices, which increased gas revenues by $201,906. A 1% increase in gas
production increased sales by an additional $5,280. The increase in gas prices
corresponds with higher prices in the overall market for the sale of gas. The
increase in gas production was primarily due to production from wells drilled on
the Sibley Field in the Dent acquisition, partially offset by natural production
declines.
Oil revenues decreased by $107,759, or 13%, from $806,163 in the first quarter
of 1996 to $698,404 in the first quarter of 1997. A 23% decrease in oil
production reduced sales by $181,934. This decrease was partially offset by a
12% increase in average oil prices. The decrease in oil production was primarily
due to natural production declines coupled with the sale of the O'Neil
acquisition in the first quarter of 1997. The increase in average oil prices
corresponds with higher prices in the overall market for the sale of oil.
Gas plant sales increased by $135,211 or 64% from $212,575 in the first quarter
of 1996 to $347,786 in the first quarter of 1997. A 68% increase in the average
sales price of gas plant product increased sales by $140,434. This increase was
partially offset by a 2% decrease in the production of gas plant products. The
increase in the average sales price of gas plant products corresponds with
higher prices in the overall market for the sale of gas plant products.
Other revenues were $263,026 and $69,530 in the first quarter of 1997 and 1996,
respectively. This increase of $193,496 was primarily due to a gain from the
sale of property of $237,306 in 1997 as compared to a $54,416 gain recognized in
the first quarter of 1996. The gain recognized in the first quarter of 1997, was
a result of the sale of the O'Neil acquisition for $440,000.
General and administrative expenses were $416,780 in the first quarter of 1997
versus $477,243 in the corresponding period in 1996. The decrease of $60,463
(13%)was primarily a result of cost reductions implemented in the first quarter
of 1997.
Lease operating and other expenses decreased from $586,001 in the first quarter
of 1996 to $571,482 in the first quarter of 1997. The decrease of $14,519 or 2%
was primarily a result of the changes in production, noted above.
Depletion, depreciation and amortization ("DD&A") expense decreased from
$263,451 in the first quarter of 1996 to $235,893 in the first quarter of 1997.
This represents a decrease of $27,558 or 10%. A 2% decrease in the depletion
rate reduced DD&A expense by $5,458. The changes in production, noted above,
reduced DD&A expense by an additional $22,100. The decrease in the depletion
rate was primarily due to upward revisions of the oil and gas reserves during
December 1996.
In the first quarter of 1997, the Company did not incur any interest expense. In
the first quarter of 1996, the Company incurred $10,603 of interest expense. The
decrease in net interest expense is a result of the repayment of the bank debt
during 1996.
I-9
<PAGE>
In the first three months of 1997, the Company recorded an income tax expense of
$18,021 as compared to a credit of $26,602 in the first quarter of 1996. The
credit and lower the statutory income tax expenses were primarily a result of
the Company's continued utilization of its deferred tax asset which resulted
from the acquisition of properties with a higher tax basis. At March 31, 1997,
the Company had a substantial net deferred tax asset of $5,276,624. Due to
uncertainties inherent in the oil and gas market, a valuation allowance reserved
all but $723,392 of the net deferred tax asset.
Future Outlook
Higher prices for oil and gas in the first quarter of 1997, increased net income
and allowed the Company to increase cash reserves to nearly $3 million and buy
back over $300,000 of its common stock outstanding. Enex has positioned itself
to take advantage of favorable business opportunities.
On April 7, 1997, the Company as General Partner of 34 managed limited
partnerships, mailed proxy material to the limited partners with respect to a
proposed consolidation of the limited partnerships. The terms and conditions of
the proposed consolidation are set forth in such proxy material.
We continue to evaluate potential joint ventures or business combinations in
order to maximize shareholder value. Cash flow will be used to reduce debt and
acquire additional producing properties. The Company has evaluated several
drilling locations for further development. While the Company has no other
material commitments for capital, a line of credit is maintained which allows
the Company to respond to acquisition and investment opportunities.
I-10
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
None
Item 2. Changes in Securities.
None
Item 3. Defaults Upon Senior Securities.
Not Applicable
Item 4. Submission of Matters to a Vote of Security Holders.
Not Applicable
Item 5. Other Information.
Not Applicable
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
(2) Not Applicable
(4) (a) Articles Fourth, Sixth, Seventh,
Fourteenth, Fifteenth, Seventeenth and
Twentieth of the Company's Certificate of
Incorporation and Article II of the
Company's By-Laws. Incorporated by reference
to the Company's Annual Report on Form
10-KSB for the fiscal year ended December
31, 1992, where the same appeared as part of
Exhibits 3(a) and 3(b).
(b) Form of Rights Agreement dated as of
September 4, 1990 between the Company's
predecessor-in-interest, Enex Resources
Corporation, a Colorado corporation (the
"Predecessor") and American Securities
Transfer, Incorporated as Rights Agent,
which includes as exhibits thereto the Form
of Rights Certificate and the Summary of
Rights to Purchase Common Stock.
Incorporated by reference to the
Predecessor's Current Report on Form 8-K,
dated as of September 4, 1990, where the
same appeared as Exhibit 4.
(11) Not Applicable
II-1
<PAGE>
(15) Not Applicable
(18) Not Applicable
(19) Not Applicable
(20) Not Applicable
(23) Not Applicable
(24) Not Applicable
(25) Not Applicable
(28) Not Applicable
(b) Reports on Form 8-K
The Company filed no reports on Form 8-K during the quarter
ended March 31, 1997.
II-2
<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 hereunto duly authorized.
ENEX RESOURCES CORPORATION
(Registrant)
By: /s/ R. E. Densford
------------------
R. E. Densford
Vice President, Secretary
Treasurer and Chief Financial
Officer
May 11, 1997 By: /s/ James A. Klein
-------------------
James A. Klein
Controller and Chief
Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
(Replace this text with the legend)
</LEGEND>
<CIK> 0000314864
<NAME> ENEX RESOURCES CORPORAION
<S> <C>
<PERIOD-TYPE> 3-mos
<FISCAL-YEAR-END> dec-31-1997
<PERIOD-START> jan-01-1997
<PERIOD-END> mar-31-1997
<CASH> 2999227
<SECURITIES> 0
<RECEIVABLES> 1629845
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 5607563
<PP&E> 15987597
<DEPRECIATION> 7950674
<TOTAL-ASSETS> 15284086
<CURRENT-LIABILITIES> 895664
<BONDS> 0
0
0
<COMMON> 10211968
<OTHER-SE> 2730758
<TOTAL-LIABILITY-AND-EQUITY> 15284086
<SALES> 2047116
<TOTAL-REVENUES> 2310142
<CGS> 853652
<TOTAL-COSTS> 1089545
<OTHER-EXPENSES> 416780
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 18021
<INCOME-CONTINUING> 0
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<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 501652
<EPS-PRIMARY> (0.35)
<EPS-DILUTED> (0.35)
</TABLE>
