UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20459
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 28, 1997
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 1-6150
ALBA-WALDENSIAN, INC.
(Exact name of registrant as specified in its Charter)
Delaware 56-0359780
(State or other jurisdiction (I.R.S.Employer Identification No.)
of incorporation or organization)
P.O. Box 100, Valdese, N.C. 28690
(Address of principal executive offices)(Zip code)
(704) 879-6500
Registrant's telephone number, including area code
NONE
Former name, former address and former fiscal year, if changed
since last report.
Indicate by check mark whether 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
As of September 28, 1997, the number of common shares outstanding was 1,867,403.
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ALBA-WALDENSIAN, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
<TABLE>
<S> <C> <C>
September 28, December 31,
1997 1996
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash $585,805 $294,447
Accounts receivable, net of allowance
for doubtful accounts of $255,636
and $275,000, respectively 10,450,000 9,712,667
Refundable income taxes 23,041 --
Inventories:
Materials and supplies 2,773,037 2,877,822
Work-in-process 5,425,909 4,168,965
Finished goods 3,369,529 5,295,871
--------- ---------
Total inventories 11,568,475 12,342,658
---------- ----------
Deferred income taxes 452,091 452,091
Prepaid expenses and other 278,855 303,142
------- -------
Total Current Assets 23,358,267 23,105,005
---------- ----------
PROPERTY AND EQUIPMENT 31,151,807 31,359,652
LESS: ACCUMULATED DEPRECIATION (17,609,249) (17,821,356)
---------- ----------
Net Property and Equipment 13,542,558 13,538,296
---------- ----------
OTHER ASSETS:
Notes receivable 39,364 47,920
Trademarks and patents 412,090 445,510
Excess of cost over net assets acquired 7,621,256 8,062,580
--------- ---------
8,072,710 8,556,010
--------- ---------
TOTAL ASSETS $44,973,535 $45,199,311
========== ==========
</TABLE>
See notes to consolidated financial statements.
<PAGE>
ALBA-WALDENSIAN, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
<TABLE>
<S> <C> <C>
September 28, December 31,
1997 1996
---- ----
(Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Short term borrowings and lines
of credit(Note 2) $ - $ -
Current maturities of long-term debt 2,350,000 2,350,000
Accounts payable 2,432,662 1,900,024
Accrued expenses:
Payroll and profit-sharing 1,312,013 605,372
Property and payroll taxes 293,207 169,554
Group health claims 515,396 241,872
Other 317,663 356,080
Income taxes payable - 169,324
------------ -------
Total Current Liabilities 7,220,941 5,792,226
LONG-TERM DEBT (Note 2) 8,737,500 9,912,500
DEFERRED COMPENSATION 31,993 232,160
DEFERRED INCOME TAX LIABILITY 1,474,014 1,474,014
--------- ---------
Total Liabilities 17,464,448 17,410,900
---------- ----------
STOCKHOLDERS' EQUITY:
Common stock - authorized 3,000,000 shares,
$2.50 par value; issued: 1,886,580
shares in 1997 and 1996; outstanding:
1,867,403 in 1997 and 1996 4,716,450 4,716,450
Additional paid-in capital 9,182,158 9,182,158
Retained earnings 13,747,115 14,026,439
---------- ----------
27,645,723 27,925,047
Less treasury stock - at cost
(19,177 shares) (136,636) (136,636)
------- --------
Total Stockholders' Equity 27,509,087 27,788,411
---------- ----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $44,973,535 $45,199,311
========== ==========
</TABLE>
See notes to consolidated financial statements.
<PAGE>
ALBA-WALDENSIAN, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
<TABLE>
<S> <C> <C> <C> <C>
Three Months Ended Nine Months Ended
September 28, September 29, September 28, September 29,
1997 1996 1997 1996
---- ---- ---- ----
Net sales $15,389,916 $16,279,071 $45,202,763 $49,954,254
Cost of sales 12,205,100 12,584,736 35,513,875 38,344,370
---------- ---------- ---------- ----------
Gross profit 3,184,816 3,694,335 9,688,888 11,609,884
Selling, general and
administrative expenses 2,685,572 3,309,221 9,226,864 10,426,362
--------- --------- --------- ----------
Operating income 499,244 385,114 462,024 1,183,522
Interest expense (269,819) (381,732) (778,809) (995,480)
Interest income 17,735 6,777 45,076 13,370
Other 14,143 26,944 (179,597) 6,626
------ ------ ------- ---------
Total other income (expense) (237,941) (348,011) (913,270) (975,484)
-
Income (loss) before income taxes 261,303 37,103 (451,246) 208,038
Provision for (benefit from)
income taxes 98,842 13,660 (171,922) 78,652
------ ------ ------- ------
Net income (loss) $ 162,461 $ 23,443 $ (279,324) $129,386
======= ====== ======= =======
Net income (loss) per
common share $ .09 $ .01 $ (.15) $ .07
=== === ==== ===
Weighted average number of
shares
of common stock outstanding 1,867,403 1,867,403 1,867,403 1,867,403
========= ========= ========= =========
</TABLE>
See notes to consolidated financial statements.
<PAGE>
ALBA-WALDENSIAN, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<S> <C> <C>
Nine Month Periods Ended
September 28, September 29,
1997 1996
---- ----
OPERATING ACTIVITIES:
Net income (loss) $ (279,324) $ 129,386
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization 1,293,535 1,310,495
Goodwill amortization 441,324 499,090
Provision for bad debts 92,548 30,587
Loss on disposal of property 137,815
Provision for inventory obsolescence 625,081 448,747
Changes in operating assets and
liabilities providing (using) cash:
Accounts receivable (828,509) (1,081,550)
Refundable income taxes (23,041) 437,453
Inventories 149,102 (115,784)
Prepaid expenses and other 24,287 431,263
Accounts payable 532,638 (1,191,547)
Accrued expenses and other liabilities 1,065,400 545,708
Income taxes payable (169,324) 178,202
Deferred compensation (200,167) (77,708)
------- ------
Net cash provided by operating activities 2,861,365 1,544,342
--------- ---------
INVESTING
ACTIVITIES:
Capital expenditures (1,614,293) (1,230,877)
Proceeds from sale of property 212,102 --
Proceeds from notes receivable 7,184 6,558
----- -----
Net cash used in investing activities (1,395,007) (1,224,319)
--------- ---------
FINANCING ACTIVITIES:
Net borrowings under line
of credit agreement -- 1,457,758
Principal payments on long-term debt (1,175,000) (1,820,569)
--------- ---------
Net cash provided by financing activities (1,175,000) (362,811)
----------- ---------
NET INCREASE IN CASH 291,358 (42,788)
CASH AT BEGINNING OF PERIOD 294,447 56,009
------- ------
CASH AT END OF PERIOD $ 585,805 $ 13,221
======= ======
</TABLE>
<PAGE>
ALBA-WALDENSIAN, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<S> <C> <C>
Nine Month Periods Ended
September 28, September 29,
1997 1996
---- ----
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest $ 670,244 $ 992,934
Income taxes $ 20,617 $ 0
</TABLE>
See notes to consolidated financial statements.
<PAGE>
ALBA-WALDENSIAN, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statement
(Unaudited)
1. UNAUDITED FINANCIAL INFORMATION
In the opinion of the Company, the accompanying unaudited consolidated
financial statements contain all adjustments necessary to present fairly the
financial position as of September 28, 1997, and the results of operations for
the three and nine month periods ended September 28, 1997, and September 29,
1996. These unaudited financial statements should be read in conjunction with
the Company's most recent audited financial statements.
The results of operations for the three and nine months period ended
September 28, 1997, are not necessarily indicative of the results to be expected
for the full year.
The three-month period for 1997 began June 30, 1997, and ended
September 28, 1997. The three-month period for 1996 began July 1, 1996, and
ended September 29, 1996. The nine-month period for 1997 began January 1, 1997,
and ended September 28, 1997. The nine-month period for 1996 began January 1,
1996, and ended September 29, 1996.
2. BANK DEBT
The Company has both a seasonal line of credit and long-term debt
agreements with a major bank. On March 28, 1997, the Company renegotiated the
terms of these agreements wherein the seasonal line of credit was reduced from
$5,000,000 to $3,000,000. For both the seasonal line and the long-term
agreements, the interest rate was increased to LIBOR plus 2.75% (formerly LIBOR
plus 1.75% for the seasonal line and LIBOR plus 2% for the long-term debt).
Additionally, the terms of certain financial covenants were revised to more
closely reflect the current level of the Company's operations.
Seasonal Line of Credit
The Company has an agreement with a bank, which provides a seasonal
line of credit of up to $3,000,000. In addition, this line of credit provides a
sub-limit of $1,000,000 to support import letters of credit. Interest is accrued
at the LIBOR rate plus 2.75% at September 28, 1997. The line of credit
commitment will be automatically reduced by $1,000,000 on both May 31, 1998, and
March 31, 1999. Indebtedness under this agreement is collateralized by
inventory, equipment and accounts receivable.
Long-Term Debt
<TABLE>
<S> <C> <C>
Long-term debt is comprised of:
September 28, December 31,
1997 1996
Note Payable-Equipment Loan(a) $ 250,000 $ 500,000
Note Payable-Balfour Purchase (b) 10,837,500 11,762,500
------------ -----------
Total 11,087,500 12,262,500
Less: Current Maturities 2,350,000 2,350,000
------------- -----------
Total Long-Term Debt $ 8,737,500 $ 9,912,500
</TABLE>
(a) Pursuant to a fixed rate term loan agreement dated February 12,
1993, this $2,000,000 note was used to purchase new equipment. Interest accrues
at 6.3% fixed rate and principal payments are made quarterly with the final
payment due December 31, 1997.
(b) Pursuant to variable loan rate term loan agreement dated March 6,
1995, this $15,000,000 note was used to purchase the Balfour Healthcare Division
from Kayser-Roth Corporation. Interest accrues at the rate of LIBOR plus 2.75%
at September 28, 1997. Principal payments are being made quarterly and began
June 30, 1995, with the final payment due June 30, 2000. This loan agreement
contains various loan covenants, as defined, which include maintaining a minimum
tangible net worth, a minimum cash flow and leverage ratio and a limit on
capital spending. The agreement also maintains that any cash dividends paid will
not cause default of any loan covenant as a result of paying those dividends.
The Company has outstanding interest rate swap agreements under
which the Company receives a variable rate based on LIBOR and pays a fixed rate
of 7.95% to 8.03% on notional amounts of $3,342,806 and $3,868,561,
respectively, as determined in one month intervals through November 31, 1998.
The transaction effectively changes a portion of the Company's interest rate
exposure from a variable rate to a fixed rate. The Company is exposed to a
credit loss in the event of nonperformance by the other party to the interest
rate swap agreement. However, the Company does not anticipate nonperformance by
the counterparty.
A substantial portion of the Company's inventory, property and
equipment, and accounts receivable are pledged as collateral for the long-term
debt.
The annual principal maturities of the long term debt at September 28,
1997, were as follows:
1997 1,175,000
1998 2,350,000
1999 2,350,000
2000 5,212,500
---------
Total $11,087,500
===========
3. NON-RECURRING CHARGES
During the first quarter of 1997, severance costs of approximately
$401,000 were recorded in connection with the Company's former President and
CEO.
4. NEW ACCOUNTING PRONOUNCEMENTS
The Company will adopt Statement of Financial Accounting Standards No. 128,
"Earnings Per Share" ("SFAS No. 128") on December 31, 1997. This statement is
not expected to have a material impact on the Company's reporting of Earnings
Per Share.
In June 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No.130, "Reporting Comprehensive Income"
("SFAS No. 130"). SFAS No.130 establishes standards for the reporting and
displaying of comprehensive income and its components (revenues, expenses, gains
and losses) in a full set of general-purpose financial statements. SFAS No.130
requires the disclosure of an amount that represents total comprehensive income
and the components of comprehensive income in a financial statement. The
pronouncement is effective for fiscal years beginning after December 15, 1997,
and is not expected to have a material impact on the Company's financial
statements.
In June 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No.131, "Disclosures about Segments of an
Enterprise and Related Information" ("SFAS No. 131"). SFAS No.131 establishes
standards for determining an entity's operating segments and the type and level
of financial information to be disclosed in both annual and interim financial
statements. SFAS No.131 also establishes standards for related disclosures about
products and services, geographic areas and major customers. The pronouncement
is effective for periods beginning after December 15, 1997, and its adoption
could result in the Company having to segment its operating activities.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Liquidity and Capital Resources
Although the Company's working capital has decreased by $1,175,453
since December 31, 1996, the available working capital continues to be adequate
to support the Company's operations and reflects an improved ratio over the
comparable period of the prior year. The working capital decline is primarily
reflected in higher accounts payable and higher accrued expenses. On September
28, 1997, the Company had a current working capital of $16,137,326 with a ratio
of 3.23 to1. This is comparable to $17,312,779 or 3.99 to 1 at December 31,
1996, and $17,534,010 or 3.06 to 1 at September 29, 1996. The decrease in the
amount of working capital reflects the Company's concerted efforts to reduce
inventory levels, which have declined to $11,568,475 at September 28, 1997, from
$12,342,658 at December 31, 1996, and $14,825,007 at September 29, 1996.
Liquidity needs are primarily affected by and related to capital
expenditures and changes in the Company's business volume. These needs are
adequately being met through available working capital, and are supplemented by
a short-term line of credit of $3,000,000, to cover fluctuations. Capital
expenditures through the first nine months of 1997 have totaled $1,614,293,
reflecting renovations to existing plants and the purchase of new, more
efficient knitting equipment. This level of capital expenditures compares to
$1,230,877 for the same nine months of 1996 and $1,524,893 for the full 1996
year. The Company anticipates that capital expenditures for the entire year of
1997 will total approximately $2,000,000.
The Company has both a seasonal line of credit and long-term debt
agreements with a major bank. On March 28, 1997, the Company renegotiated the
terms of these agreements wherein the seasonal line of credit was reduced from
$5,000,000 to $3,000,000. For both the seasonal line and the long-term
agreements, the interest rate was increased to LIBOR plus 2.75% (formerly LIBOR
plus 1.75% for the seasonal line and LIBOR plus 2% for the long-term debt).
Additionally, the terms of certain financial covenants were revised to more
closely reflect the current level of the Company's operations.
<PAGE>
Results of Operations
Items as a percentage of sales are reflected in the following table:
<TABLE>
<S> <C> <C> <C> <C>
Three Month Periods Ended Nine Month Periods Ended
September 28, September 29, September 28, September 29,
1997 1996 1997 1996
Net sales 100.0% 100.0% 100.0% 100.0%
Cost of sales 79.3% 77.3% 78.6% 76.8%
----------- -------- ------- -------
Gross profit 20.7% 22.7% 21.4% 23.2%
Selling, general and
administrative expenses 17.5% 20.3% 20.4% 20.9%
---------- -------- ------ -------
Operating income 3.2% 2.4% 1.0% 2.3%
Other income (expense), net (1.5%) (2.2%) (2.0%) (1.94%)
----------- ---------- ------- -------
Income before income taxes 1.7% 0.2% (1.0%) 0.4%
Provision for income taxes (0.6%) (0.1%) 0.4% (0.1%)
-------- --------- ------- -------
Net Income 1.1% 0.1% (0.6%) 0.3%
======= ======= ====== ======
</TABLE>
Three Month Periods Ended September 28, 1997, and September 29, 1996
Net sales by division for the third quarter of 1997 compared to the third
quarter of 1996 are set forth in the following table.
<TABLE>
<S> <C> <C> <C> <C>
Three Month Period Ended
September 28, September 29, Increase/ %Increase/
1997 1996 (Decrease) (Decrease)
------- ------ ----------- ----------
Health Products $ 7,659,542 $8,098,032 $ (438,490) (5.4%)
Consumer Products 5,673,645 6,267,956 (594,311) (9.5%)
Alba Direct 449,682 477,806 (28,124) (5.9%)
Byford 1,607,047 1,435,277 171,770 12.0%
------------ ----------- -------------
Total $15,389,916 $16,279,071 $ (889,155) (5.5%)
</TABLE>
Net Sales as shown in the table above decreased by $889,155 or 5.5%.
Health Products sales are down primarily due to the loss of a substantial
portion of its dressing business (down 63.9%) to foreign competition, softness
in stockinette sales (down 15.4%) and problems with the Company's recently
redesigned PulStar stocking system (down 51.8%). These declines were partially
offset by an increase in tread sales (up 12.6%). Consumer Products intimate
apparel sales volume decreased 24.6%, primarily as a result of a loss of
circular knit panty business to lower priced imports and the Company's decision
to eliminate the Full Fashion panty line by mid-year. The Full Fashion loss was
offset in part by converting customers to the seamless panty line, which
continues to show strengthening throughout the year. The decline in intimates'
volume was partially offset by a 34.5% increase in sales of hosiery during the
quarter. Due to marginal profitability, the Company has decided to no longer be
a distributor for the Byford product line. During the third quarter of 1997, the
Company sold a substantial portion of its Byford sock inventories for
approximately $573,000, representing an amount slightly in excess of the cost of
such inventories. The Company anticipates that substantially all remaining
Byford inventories will be disposed of by the end of 1997 with a loss of
approximately $200,000, which has been fully provided for in the accompanying
financial statements. Byford sales totaled $3,616,747 for the first nine months
of 1997 and $5,291,000 for the full year of 1996. The effect of dropping the
Byford line will not have a material impact on the Company's continued
profitability.
Gross profits were $509,519 lower in the third quarter of 1997 due
primarily to the disposition of a significant portion of the Byford sock
inventories at a price only slightly in excess of the Company's cost. Excluding
Byford, gross profits for the third quarter of 1997 decreased only 0.1%, from
21.9% to 21.8%.
Due to lower sales volume and tighter cost controls, the selling,
general and administrative expenses decreased by $623,649 or from 20.3% of net
sales in the third quarter of 1996 to 17.5% in the third quarter of 1997.
However, the Company cannot state with certainty that it will be able to
maintain such tight control over these costs for the remainder of 1997.
Interest Expense decreased in the third quarter of 1997 as a result of
lower long-term debt and less borrowing under the line of credit agreement
during the period partially offset by higher (1%) interest rate in 1997.
As a result of the foregoing, the Company recorded an after tax profit
of $162,461 for the third quarter of 1997 as compared to a net income of $23,443
for the third quarter of 1996.
Nine Month Periods Ended September 28, 1997 and September 29, 1996
Net Sales by division for the first nine months of 1997 as compared to
the first nine-month period of 1996 are set forth in the following table:
<TABLE>
<S> <C> <C> <C> <C>
Nine Months Ended
September 28, September 29, Increase/ %Increase/
1997 1996 (Decrease) (Decrease)
Health Products $23,450,864 $24,818,215 $ (1,367,351) (5.5%)
Consumer Products 16,836,467 20,145,309 (3,308,842) (16.4%)
Alba Direct 1,298,685 1,416,499 (117,814) (8.3%)
Byford 3,616,747 3,559,459 57,288 1.6%
AWI Retail 0 14,772 (14,772) 100.0%
----------------- ------------- ---------------
Total $45,202,763 $49,954,254 $ (4,751,491) (9.5%)
</TABLE>
Net Sales as shown in the table above decreased by $4,751,491 or 9.5%.
Health Products sales are down primarily due to the loss of a substantial
portion of its dressing business (down 26.4%) to foreign competition, softness
in stockinette sales (down 12.5%) and problems with the Company's recently
redesigned Pul Star stocking system (down 53.9%). These declines were partially
offset by an increase in cuff sales (up 9.4%). Consumer Products sales of
intimate apparel decreased 22.0%, primarily as a result of a loss of circular
knit panty business to lower priced imports and the Company's decision to
eliminate the Full Fashion panty line by mid-year. The Full Fashion loss was
offset in part by converting customers to the seamless panty line. Hosiery sales
were down 4.6% for the 1997 year to date, but as noted above, hosiery sales were
up in the third quarter of 1997. Alba Direct sales declined due to lower sales
to Japan. (See discussion above regarding the Company's decision to no longer
distribute the Byford product line.)
Gross profits decreased from 23.2% to 21.4% due to the disposition of a
significant portion of the Byford sock inventories (see discussion above)
combined with a lower volume of production causing manufacturing overhead cost
per unit to increase and the resistance of the marketplace to any attempt to
pass along manufacturing cost increases.
Selling, general and administrative expenses (as a percentage of sales)
decreased from 20.9% to 20.4% in the first nine months of 1997 as compared to
the first nine months of 1996. Actual selling, general and administrative
expenses decreased $1,199,498. Due to lower volumes and tighter cost controls,
the Company was able to reduce distribution, marketing and selling expenses for
the nine months of 1997 by $1,340,739. However, this was partially offset by a
one-time charge to record the severance arrangement with the Company's former
President and CEO.
Interest Expense decreased in the nine months of 1997 as a result of
lower long-term debt and less borrowing under the line of credit agreement
during the period partially offset by higher (1%) interest rate in 1997.
Other expense increased primarily as a result of one-time charges to
write-off the full fashion equipment ($143,000) and to write down the carrying
value of the idle Alba plant that is being held for sale ($48,000). Other income
reflected several minor non-recurring gains, including a gain from the sale of
certain of the Company's yarn covering equipment, reflective of a decision to
purchase covered yarn from outside vendors at a lower cost.
As a result of the foregoing, the Company recorded an after tax loss of
$279,324 for the nine months of 1997 as compared to a net income of $129,386 for
the comparable period of 1996.
<PAGE>
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on FORM 8-K
a. Exhibits
27. Financial Data Schedule (filed in electronic format only)
b. Form 8-K
None
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 there unto duly authorized.
ALBA-WALDENSIAN, INC. AND SUBSIDIARIES
Date: November 12, 1997 /s/ Glenn J. Kennedy
--------------------
Vice President and Treasurer
(Chief Financial Officer and
Principal Accounting Officer)
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-28-1997
<CASH> 585,805
<SECURITIES> 0
<RECEIVABLES> 10,705,636
<ALLOWANCES> 255,636
<INVENTORY> 11,568,475
<CURRENT-ASSETS> 23,358,267
<PP&E> 31,151,807
<DEPRECIATION> 17,609,249
<TOTAL-ASSETS> 44,973,535
<CURRENT-LIABILITIES> 7,220,941
<BONDS> 0
0
0
<COMMON> 4,716,450
<OTHER-SE> 22,792,637
<TOTAL-LIABILITY-AND-EQUITY> 44,973,535
<SALES> 45,202,763
<TOTAL-REVENUES> 45,202,763
<CGS> 35,513,875
<TOTAL-COSTS> 44,740,739
<OTHER-EXPENSES> 179,597
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 733,733
<INCOME-PRETAX> (451,246)
<INCOME-TAX> (171,922)
<INCOME-CONTINUING> (279)324)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (279,324)
<EPS-PRIMARY> (0.15)
<EPS-DILUTED> (0.15)
</TABLE>
