<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
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 1-10538
GAMMA BIOLOGICALS, INC.
(Exact name of registrant as specified in its charter)
Texas 74-1668436
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3700 Mangum Road, Houston, Texas 77092
(Address of principal executive offices) (Zip code)
(713) 681-8481
(Registrant's telephone number, including area code)
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 [ ]
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
At November 10, 1995: 4,545,984 Shares
<PAGE>
PART I. FINANCIAL INFORMATION
GAMMA BIOLOGICALS, INC.
Consolidated Balance Sheets
(Unaudited)
<TABLE>
<CAPTION>
ASSETS SEPTEMBER 30, 1995 MARCH 31, 1995
------------------ --------------
(UNAUDITED)
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents............. $ 1,458,960 $ 1,795,854
Short-term investments................ 2,082,963 2,094,112
Receivables - net of allowance for
doubtful accounts of $209,123 and
$201,668, respectively............... 3,431,537 3,987,349
Inventories........................... 4,097,722 3,807,495
Prepaid expenses...................... 429,378 514,334
Deferred taxes........................ 128,700 124,400
----------- -----------
Total current assets............ 11,629,260 12,323,544
----------- -----------
PROPERTY - at cost, net of accumulated
depreciation and amortization of
$5,369,101 and $5,084,309,respectively. 4,836,520 4,190,560
CASH VALUE OF LIFE INSURANCE............. 1,627,865 1,531,998
OTHER ASSETS............................. 300,967 337,806
----------- -----------
TOTAL............................ $18,394,612 $18,383,908
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term
obligations........................... $ 510,338 $ 602,746
Accounts payable - trade............... 417,910 565,649
Dividends payable...................... 113,566 113,528
Accrued salaries and other expenses.... 315,890 366,446
----------- -----------
Total current liabilities........ 1,357,704 1,648,369
----------- -----------
LONG-TERM OBLIGATIONS.................... 2,798 19,263
----------- -----------
DEFERRED TAXES........................... 275,100 262,600
----------- -----------
SHAREHOLDERS' EQUITY..................... 16,759,010 16,453,676
----------- -----------
TOTAL............................ $18,394,612 $18,383,908
=========== ===========
</TABLE>
See notes to unaudited consolidated financial statements.
2
<PAGE>
GAMMA BIOLOGICALS, INC.
Statements of Consolidated Income
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
------------------------ ------------------------
SEPTEMBER 30, SEPTEMBER 30,
------------------------ ------------------------
1995 1994 1995 1994
----------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
NET SALES............................... $ 4,331,561 $4,300,750 $8,419,798 $8,643,865
COST OF SALES........................... 1,920,354 1,901,384 3,837,027 3,944,404
----------- ---------- ---------- ----------
GROSS MARGIN............................ 2,411,207 2,399,366 4,582,771 4,699,461
----------- ---------- ---------- ----------
OPERATING EXPENSES:
Selling............................... 871,105 906,293 1,729,696 1,764,695
General and administrative............ 585,949 569,344 1,133,465 1,110,166
Shipping and warehouse................ 243,968 181,257 472,482 339,484
Research and development.............. 328,715 259,132 628,957 473,160
----------- ---------- ---------- ----------
Total operating expense....... 2,029,737 1,916,026 3,964,600 3,687,505
----------- ---------- ---------- ----------
OPERATING INCOME........................ 381,470 483,340 618,171 1,011,956
----------- ---------- ---------- ----------
OTHER INCOME (EXPENSE):
Interest income.................. 67,931 60,385 136,875 108,692
Interest expense................. (17,661) (16,560) (32,050) (34,874)
Other - net...................... (1,456) (20,242) 22,279 (38,566)
----------- ---------- ---------- ----------
Other income - net............ 48,814 23,583 127,104 35,252
----------- ---------- ---------- ----------
INCOME BEFORE INCOME TAXES.............. 430,284 506,923 745,275 1,047,208
INCOME TAXES............................ 126,700 196,250 221,200 383,500
----------- ---------- ---------- ----------
NET INCOME.............................. $ 303,584 $ 310,673 $ 524,075 $ 663,708
=========== ========== ========== ==========
Weighted average number of common and
common equivalent shares outstanding. 4,597,956 4,692,499 4,597,511 4,693,202
----------- ---------- ---------- ----------
Net income per common and common
equivalent share..................... $.07 $.07 $.11 $.14
=========== ========== ========== ==========
</TABLE>
See notes to unaudited consolidated financial statements.
3
<PAGE>
GAMMA BIOLOGICALS, INC.
Statements of Consolidated Changes in Shareholders' Equity
(Unaudited)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
-----------------------------------------------------
SEPTEMBER 30,
-----------------------------------------------------
1995 1994
-------------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------- ----------- ------------
<S> <C> <C> <C> <C>
COMMON STOCK
Balance, beginning of period......... 4,700,303 $ 470,030 4,700,078 $ 470,008
Exercise of stock options............ 3,000 300
---------- ------------ ---------- -----------
Balance, end of period.......... 4,703,303 470,330 4,700,078 470,008
---------- ------------ ---------- -----------
CAPITAL IN EXCESS OF PAR
Balance, beginning of period.... 13,482,615 13,481,763
Exercise of stock options....... 8,130
---------- ------------ ---------- -----------
Balance, end of period.......... 13,490,745 13,481,763
---------- ------------ ---------- -----------
RETAINED EARNINGS
Balance, beginning of period.... 3,619,289 2,609,496
Net income...................... 524,075 663,708
Dividends declared.............. (227,171) (229,562)
---------- ------------ ---------- -----------
Balance, end of period.......... 3,916,193 3,043,642
---------- ------------ ---------- -----------
UNREALIZED INVESTMENT LOSS
Balance, beginning of period.... (87,683)
Current period unrealized loss.. (5,819)
---------- ------------ ---------- -----------
Balance, end of period.......... (93,502)
---------- ------------ ---------- -----------
TREASURY STOCK
Balance, beginning of period.... (159,169) (1,118,258) (99,952) (853,469)
Purchase of treasury stock...... (8,200) (38,419)
---------- ------------ ---------- -----------
Balance, end of period.......... (159,169) (1,118,258) (108,152) (891,888)
---------- ------------ ---------- -----------
TOTAL SHAREHOLDERS' EQUITY............. 4,544,134 $ 16,759,010 4,591,926 $16,010,023
========== ============ ========== ===========
</TABLE>
See notes to unaudited consolidated financial statements.
4
<PAGE>
GAMMA BIOLOGICALS, INC.
Statements of Consolidated Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
-----------------------------
SEPTEMBER 30,
-----------------------------
1995 1994
-------------- -------------
<S> <C> <C>
[INCREASE (DECREASE) IN CASH]
Cash flows from operating activities:
Cash received from customers.......... $ 8,975,066 $ 8,656,162
Interest received..................... 74,517 67,703
Cash paid to suppliers and employees.. (7,849,923) (8,249,306)
Interest paid......................... (32,050) (34,874)
Income taxes paid..................... (200,000) (385,000)
------------ ------------
Net cash provided by operating
activities........................... 967,610 54,685
------------ ------------
Cash flows from investing activities:
Property additions.................... (965,075) (400,083)
Increase in cash value of life
insurance............................ (95,867) (134,551)
Purchase of investments............... (955,449) (2,997,977)
Proceeds from investments............. 1,030,868 2,091,695
Proceeds from sale of equipment....... 8,595 32,640
------------ ------------
Net cash used in investing
activities.......................... (976,928) (1,408,276)
------------ ------------
Cash flows from financing activities:
Payments on long-term
obligations........................... (108,873) (105,544)
Exercise of stock options............. 8,430
Purchase of treasury stock............ (38,419)
Dividends paid........................ (227,133) (230,008)
------------ ------------
Net cash used in financing
activities........................... (327,576) (373,971)
------------ ------------
Net decrease in cash.................... (336,894) (1,727,562)
Cash and cash equivalents at beginning
of period.............................. 1,795,854 3,175,265
------------ ------------
Cash and cash equivalents at end of
period................................. $ 1,458,960 $ 1,447,703
============ ============
</TABLE>
5
<PAGE>
GAMMA BIOLOGICALS, INC.
Statements of Consolidated Cash Flows
(Unaudited)
Reconciliation of Net Income to
Net Cash Provided by Operating Activities
<TABLE>
<CAPTION>
SIX MONTHS ENDED
------------------------
SEPTEMBER 30,
------------------------
1995 1994
----------- -----------
<S> <C> <C>
Net Income............................... $ 524,075 $ 663,708
Adjustments to reconcile net income to
cash provided by operating activities:
Depreciation........................ 319,013 257,681
Amortization of goodwill............ 73,517
Loss on sale of fixed assets........ 102 42,875
Decrease in accounts receivable..... 584,768 55,248
Gain on sale of investments......... (93,226) (40,989)
Increase in inventory............... (290,227) (258,486)
(Increase) decrease in prepaid
expenses........................... 76,361 (117,676)
(Increase) decrease in other assets. 36,839 (75,637)
Decrease in accounts payable........ (147,739) (150,448)
Decrease in accrued salaries and
other expenses..................... (42,356) (395,108)
---------- ----------
Net Cash Provided by
Operating Activities............. $ 967,610 $ 54,685
========== ==========
</TABLE>
Supplemental Schedule of Non-Cash Investing and Financing Activities:
The company entered into various capital leases for new equipment, which
increased the company's property and long-term debt by $119,389 in 1994.
See notes to unaudited consolidated financial statements.
6
<PAGE>
GAMMA BIOLOGICALS, INC.
Notes to Consolidated Financial Statements
(Unaudited)
1. Reconciliation of statutory rate with effective United States income tax
rate:
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
------------------ -----------------
SEPTEMBER 30, SEPTEMBER 30,
------------------ -----------------
<S> <C> <C> <C> <C>
1995 1994 1995 1994
---- ---- ---- ----
Statutory rate............... 34.0% 34.0% 34.0% 34.0%
Increase (decrease)
resulting from:
Exempt export earnings.... (3.8) (4.4)
Life insurance premiums... .8 .9
Amortization of goodwill.. 2.5 2.4
Other-net................. (1.5) 2.2 (.7) .2
---- ---- ---- ----
Effective tax rate............. 29.5% 38.7% 29.8% 36.6%
==== ==== ==== ====
</TABLE>
The provision for deferred income taxes is based on the liability method
prescribed by SFAS No. 109, "Accounting for Income Taxes", which was adopted by
the company during the first quarter of 1994. A deferred income tax liability or
asset is recognized for temporary differences between the tax basis of assets
and liabilities and their reported amounts in the financial statements that will
result in net taxable or deductible amounts in future years. Significant
components of the company's deferred tax assets (liabilities) are as follows:
<TABLE>
<CAPTION>
SEPTEMBER 30, 1995 MARCH 31, 1995
------------------- ---------------
<S> <C> <C>
Allowance for bad debts.............. $ 71,100 $ 68,600
Inventory costs capitalized.......... 57,600 50,800
Other................................ 5,000
------------------- ---------------
Net current deferred tax asset...... 128,700 124,400
------------------- ---------------
Difference between book and tax
basis of property, plant and
equipment........................... (253,000) (254,000)
Other................................ (22,100) (8,600)
------------------- ---------------
Net noncurrent deferred tax
liability.......................... (275,100) (262,600)
------------------- ---------------
Net deferred tax liability........... $ (146,400) $ (138,200)
=================== ===============
</TABLE>
2. Net income per common and common equivalent share is computed using
weighted average number of shares and dilutive equivalent shares
outstanding during each period. The weighted average number of shares for
the three month period ended September 30 was 4,597,956 in 1995 and
4,692,499 in 1994; for the six month period then ended, 4,597,511 in 1995
and 4,693,202 in 1994.
7
<PAGE>
3. Inventories are valued at the lower of cost or market value, based on the
cost method summarized below:
<TABLE>
<CAPTION>
SEPTEMBER 30, 1995 MARCH 31, 1995
------------------ --------------
<S> <C> <C>
First-in, first out:
Finished products................. $1,947,696 $1,540,278
Products in process............... 388,459 650,443
------------------ --------------
2,336,155 2,190,721
------------------ --------------
Specific identification:
Raw material...................... 938,124 840,289
Finished instrument systems....... 3,624 3,648
------------------ --------------
941,748 843,937
------------------ --------------
Average:
Supplies.......................... 819,819 772,837
------------------ --------------
Total............................ $4,097,722 $3,807,495
================== ==============
</TABLE>
4. INVESTMENTS
The company adopted SFAS No. 115, "Accounting for Certain Investments in
Debt and Equity Securities" in 1994. In accordance with this Statement, the
company classified its investment in equity securities as "available for
sale", which was reported at fair value. Unrealized holding gains and losses
are reported in a separate component of shareholders' equity until realized.
These securities were sold in August 1995. The company has the positive
intent and ability to hold its investments in debt securities to maturity;
these investments are reported at amortized cost. Investments in debt and
equity securities are summarized as follows:
<TABLE>
<CAPTION>
UNREALIZED CARRYING
TYPE CLASSIFICATION FAIR VALUE GAIN (LOSS) VALUE
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Six months ended September 30, 1995
Debt securities:
U.S. Government:
Federal Natl Mtg Assn - due
11/29/95 Held to maturity $ 990,400 $ 4,083 $ 986,317
Treasury Notes - due 3/31/96 Held to maturity 997,500 854 996,646
Certificates of Deposit - due
3/11/96 Held to maturity 100,000 100,000
-----------------------------------------
Total debt securities 2,087,900 4,937 2,082,963
-----------------------------------------
Total investments $2,087,900 $ 4,937 $2,082,963
=========================================
Six months ended September 30, 1994
Equity securities:
Common stock Available for sale $ 8,806 $ (681) $ 8,806
Debt securities:
U.S. Government:
Federal Home Loan Banks - due
3/27/95 Held to maturity 1,004,380 (1,783) 1,006,163
Treasury Notes - due 3/31/96 Held to maturity 983,130 (6,807) 989,937
Federal Farm Credit Banks -
due 9/1/95 Held to maturity 998,130 (3,162) 1,001,292
Certificates of Deposit - due
3/13/95 Held to maturity 100,000 100,000
-----------------------------------------
Total debt securities 3,085,640 (11,752) 3,097,392
-----------------------------------------
Total investments $3,094,446 $ (12,433) $3,106,198
=========================================
</TABLE>
8
<PAGE>
5. In the opinion of management, the unaudited consolidated condensed
financial statements for Gamma Biologicals, Inc. (the "company") includes
all adjustments (consisting solely of normal recurring adjustments)
necessary for a fair presentation of the financial position of the company
as of September 30, 1995, the results of operations of the three and six
month periods ended September 30, 1995 and 1994 and cash flows for the six
month periods ended September 30, 1995 and 1994. Although management
believes the disclosures in these financial statements are adequate to make
the information presented not misleading, certain information and footnote
disclosures normally included in annual financial statements prepared in
accordance with generally accepted accounting principles have been
condensed or omitted pursuant to the rules and regulations of the
Securities and Exchange Commission. The results of operations for the
periods ended September 30, 1995 are not necessarily indicative of the
results to be expected for the full year.
6. LONG-TERM OBLIGATIONS
Long-term obligations consist of:
<TABLE>
<CAPTION>
SEPTEMBER 30, 1995 MARCH 31, 1995
--------------------- --------------
<S> <C> <C>
Mortgage note, due monthly through
1995.............................. $461,931 $508,434
Other obligations.................. 51,205 113,575
-------- --------
513,136 622,009
Less current portion.............. 510,338 602,746
-------- --------
Total long-term obligations........ $ 2,798 $ 19,263
======== ========
</TABLE>
The mortgage note bears interest at the bank's base rate, but not less than
7% nor more than 13%. At September 30, 1995, the note bore interest at
9.75%. The mortgage note is collaterized by a first lien on the company's
land and building. Subsequent to September 30, 1995, the mortgage note, due
November 2, 1995, was extended with no significant changes in terms or
conditions. The new note matures November 2, 2000.
7. SALES BY GEOGRAPHIC AREA
The company operates within one dominant segment - the manufacture and sale
of blood bank and diagnostic products - and has no customer which accounts
for 10% or more of its total sales. The company operates in one geographic
area, the United States, from which it sells to numerous countries.
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
------------------------ ------------------------
SEPTEMBER 30, SEPTEMBER 30,
------------------------ ------------------------
1995 1994 1995 1994
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net sales to unaffiliated customers:
United States.................. $3,146,710 $3,102,841 $6,137,258 $6,222,045
Europe......................... 383,644 388,768 771,468 866,471
Pacific Region................. 326,714 334,874 607,810 632,029
Mexico, Central and South
America....................... 247,795 228,933 406,744 482,027
Middle East.................... 159,615 170,585 368,186 296,562
Other.......................... 67,083 74,749 128,332 144,731
----------- ----------- ----------- -----------
Total....................... $4,331,561 $4,300,750 $8,419,798 $8,643,865
=========== =========== =========== ===========
</TABLE>
9
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
RESULTS OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 1995
Company sales for the three months ended September 30, 1995 remained constant
compared with the same period in 1994. Decreases in domestic sales of STS-M
reagents and disposables and instrument service contract revenue were offset by
sales of the new SegmentSampler and increased sales of recently licensed
monoclonal reagents. Internationally, sales to Mexico recovered from a first
quarter slump, and sales to Brazil showed a dramatic increase with the
appointment of a new dealer.
Gross margin as a percentage of sales remained at 56% in 1995 due to the
positive effect of reduced travel and personnel expenses related to discontinued
STS-M service contracts combined with decreased sales of lower-margin STS-M
disposables and the contribution of higher-margin SegmentSampler sales.
Selling expenses decreased 4% due to lower personnel costs resulting from a
reorganization of the international sales function in August 1994. General and
administrative expenses increased 3%, due primarily to legal fees related to
patent applications covering the ReACT and biosensor technologies. Shipping
and warehouse expenses increased 35% compared with the same period in 1994 due
to supply price increases, along with increased staffing and depreciation
expense related to the first phase of the bar coding system installed in March
1995. The bar coding system, when complete, is expected to provide significant
long-term benefits to the shipping, warehousing and manufacturing functions.
Research and development expenses increased 27% in 1995 due to costs
associated with the ongoing electro-biosensor research and development costs for
the ReACT project.
Interest income increased due to increased funds invested and higher interest
rates in the current period. Interest expense increased slightly due to higher
interest rates.
The provision for income taxes fell in 1995 due to lower pretax earnings.
SIX MONTHS ENDED SEPTEMBER 30, 1995
Net income for the six months ended September 30, 1995 remained relatively
constant compared with the same period in 1994. A 29% decrease in pre-tax
income was offset by a 42% decrease in income taxes. The decrease in pre-tax
income was due primarily to lower first quarter sales and the increases in
operating expenses as outlined above for the three month period ended September
30, 1995.
10
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
Net cash flows increased approximately $1,391,000 during the six month period
ended September 30, 1995 compared with the same period in 1994. Operating cash
flows improved by $913,000 due to collection of international receivables, the
absence of payments of license fees that affected 1994 operating cash flows, and
lower income tax payments. A $565,000 increase in capital expenditures for
manufacturing modernization partially offset the gains in operating cash flows.
Management expects that capital expenditures will continue to be higher than
usual for the next 12 months to complete all planned improvements. Management
also believes that operating cash flows will be sufficient to meet future
operating needs.
The terms of the company's mortgage note agreement dated November 2, 1990
required a balloon payment of approximately $450,000 at maturity in 1995.
Subsequent to September 30, 1995, the agreement was extended through November
2000, with no significant changes in terms or conditions.
During the current period, we ordered the first production lots of ReACT
microcolumn centrifuges and incubators that should be available for sale
internationally in mid-1996. Deliveries should begin in December 1995. We
continue to evaluate potential manufacturing sites outside the United States,
since FDA approval to market ReACT in the United States may take as long as two
years. Regarding electro-biosensor research, additional funding of $155,000 has
been committed to one of the research centers for 1996, and will be disbursed in
the third and fourth quarters.
The company's existing capital resources, consisting of $3,500,000 in cash and
short-term investments and a $1,500,000 revolving credit line, should be
sufficient to support planned product development and capital improvements
during the next 12 months.
11
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits, Part II
(27) Article 5 Financial Data Schedule
(b) Reports on Form 8-K - None
12
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed in its behalf by the
undersigned thereunto duly authorized.
GAMMA BIOLOGICALS, INC.
November 10, 1995 By: /s/ John J. Moulds
--------------------------
John J. Moulds
President
(Chief Operating Officer)
November 10, 1995 By: /s/ Margaret J. O'Bannion
--------------------------
Margaret J. O'Bannion
Vice President - Finance
(Chief Financial Officer)
13
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
(CONSOLIDATED BALANCE SHEETS AND STATEMENTS OF CONSOLIDATED INCOME) AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-END> SEP-30-1995
<CASH> 1,458,960
<SECURITIES> 2,082,963
<RECEIVABLES> 3,640,660
<ALLOWANCES> 209,123
<INVENTORY> 4,097,722
<CURRENT-ASSETS> 11,629,260
<PP&E> 10,205,621
<DEPRECIATION> 5,369,101
<TOTAL-ASSETS> 18,394,612
<CURRENT-LIABILITIES> 1,357,704
<BONDS> 2,798
<COMMON> 470,330
0
0
<OTHER-SE> 16,288,680
<TOTAL-LIABILITY-AND-EQUITY> 18,394,612
<SALES> 8,419,798
<TOTAL-REVENUES> 8,419,798
<CGS> 3,837,027
<TOTAL-COSTS> 2,831,135
<OTHER-EXPENSES> 1,103,964
<LOSS-PROVISION> 29,501
<INTEREST-EXPENSE> 32,050
<INCOME-PRETAX> 745,275
<INCOME-TAX> 221,200
<INCOME-CONTINUING> 524,075
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 524,075
<EPS-PRIMARY> .11
<EPS-DILUTED> .11
</TABLE>
