FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended August 31, 1996
Commission File Number 0-1500
EVANS, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 36-1050870
(State or other jurisdiction of (IRS Employer
Incorporation or organization) Identification Number)
36 South State Street, Chicago, Illinois 60603
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code 312-855-2000
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: as of October 11,
1996 4,918,301 shares of common stock, $.20 par value, were outstanding.
<PAGE>
EVANS, INC. AND SUBSIDIARIES
INDEX
Page No.
Part I. Financial Information --------
Condensed Consolidated Balance Sheets -
August 31, 1996, August 26, 1995
and March 2, 1996 2
Condensed Consolidated Statements of Operations -
Thirteen and Twenty-six weeks ended
August 31, 1996 and August 26, 1995 3
Condensed Consolidated Statements of Cash Flows -
Twenty-six weeks ended August 31, 1996
and August 26, 1995 4
Notes to Condensed Consolidated Financial Statements 5 - 6
Management's Discussion and Analysis of Financial
Condition and Results of Operations 7 - 9
Part II. Other Information 10
Signatures 11
Index to Exhibits 12
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
Evans, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
<CAPTION>
August 31, August 26, March 2,
1996 1995 1996
------------ ------------ ------------
<S> <C> <C> <C>
ASSETS
- ------
Current assets:
Cash and cash equivalents $764,000 $931,000 $1,378,000
Accounts receivable (net) 12,577,000 13,547,000 15,984,000
Merchandise inventories 17,445,000 16,946,000 14,761,000
Prepaid expenses and other assets 1,244,000 765,000 1,154,000
Deferred income taxes 1,583,000
------------ ------------ ------------
Total current assets 33,613,000 32,189,000 33,277,000
------------ ------------ ------------
Property and equipment 20,931,000 22,893,000 20,716,000
Accumulated depreciation and
amortization (10,831,000) (12,416,000) (10,293,000)
------------ ------------ ------------
Net property and equipment 10,100,000 10,477,000 10,423,000
Other assets 3,353,000 2,870,000 3,469,000
------------ ------------ ------------
$47,066,000 $45,536,000 $47,169,000
============ ============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Current liabilities:
Notes payable $11,707,000 $9,724,000 $9,219,000
Current portion of long-term debt 1,043,000 692,000 1,043,000
Accounts payable 7,361,000 8,050,000 7,769,000
Accrued liabilities 5,784,000 7,123,000 5,461,000
------------ ------------ ------------
Total current liabilities 25,895,000 25,589,000 23,492,000
------------ ------------ ------------
Long-term debt 1,569,000 2,612,000 1,888,000
------------ ------------ ------------
Other liabilities 11,000 11,000 11,000
------------ ------------ ------------
Shareholders' equity:
Preferred stock, 3,000,000 shares
authorized, none issued
Common stock, 6,333,433 shares
issued 1,267,000 1,267,000 1,267,000
Capital in excess of par value 15,660,000 15,660,000 15,660,000
Retained earnings 7,262,000 4,995,000 9,449,000
------------ ------------ ------------
24,189,000 21,922,000 26,376,000
------------ ------------ ------------
Treasury stock (1,415,134 shares
at cost) (4,598,000) (4,598,000) (4,598,000)
------------ ------------ ------------
Total shareholders' equity 19,591,000 17,324,000 21,778,000
------------ ------------ ------------
$47,066,000 $45,536,000 $47,169,000
============ ============ ============
<FN>
See accompanying notes to condensed consolidated financial statements.
</FN>
</TABLE>
- 2 -
<PAGE>
<TABLE>
Evans, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Thirteen weeks ended Twenty-six weeks ended
-------------------------- --------------------------
Aug. 31, Aug. 26, Aug. 31, Aug. 26,
1996 1995 1996 1995
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net sales $6,754,000 $7,999,000 $15,593,000 $20,299,000
Service revenues 4,220,000 4,328,000 8,884,000 9,309,000
------------ ------------ ------------ ------------
10,974,000 12,327,000 24,477,000 29,608,000
------------ ------------ ------------ ------------
Costs and expenses:
Cost of goods and
services sold, buying
and occupancy costs 7,706,000 8,978,000 16,197,000 20,956,000
Selling and general
expenses 5,239,000 5,396,000 11,169,000 12,021,000
Provision for doubtful
accounts 86,000 102,000 199,000 250,000
Interest expense 354,000 324,000 687,000 604,000
Other income, net (5,000) -- (5,000) (3,000)
------------ ------------ ------------ ------------
13,380,000 14,800,000 28,247,000 33,828,000
------------ ------------ ------------ ------------
Loss before credit
for income taxes (2,406,000) (2,473,000) (3,770,000) (4,220,000)
Credit for income taxes 1,010,000 -- 1,583,000 --
------------ ------------ ------------ ------------
Net loss ($1,396,000) ($2,473,000) ($2,187,000) ($4,220,000)
============ ============ ============ ============
Net loss per common
share ($0.28) ($0.50) ($0.44) ($0.86)
------------ ------------ ------------ ------------
Cash dividends per
common share -- -- -- --
Weighted average number
of common shares
outstanding 4,918,301 4,918,301 4,918,301 4,918,301
============ ============ ============ ============
<FN>
See accompanying notes to condensed consolidated financial statements.
</FN>
</TABLE>
- 3 -
<PAGE>
<TABLE>
Evans, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
Twenty-six weeks ended
-------------------------------
Aug. 31, 1996 Aug. 26, 1995
------------- -------------
<S> <C> <C>
Cash Flows from Operating Activities:
Net loss ($2,187,000) ($4,220,000)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 681,000 691,000
Provision for doubtful accounts 199,000 250,000
Change in assets and liabilities:
Accounts receivable 3,208,000 3,308,000
Merchandise inventories (2,684,000) (545,000)
Prepaid expenses and other current assets (90,000) (253,000)
Deferred income taxes (1,583,000) 0
Other assets 13,000 100,000
Accounts payable (408,000) (2,627,000)
Accrued liabilities 323,000 193,000
Other liabilities 0 (5,000)
------------ ------------
Net cash used in operating activities (2,528,000) (3,108,000)
Cash Flows from Investing Activities:
Proceeds from the sale of property
and equipment 5,000 10,000
Additions to property and equipment (260,000) (484,000)
------------ ------------
Net cash used in investing activities (255,000) (474,000)
Cash Flows from Financing Activities:
Proceeds from short-term borrowing 2,488,000 1,654,000
Principal payments on long-term debt (319,000) (41,000)
------------ ------------
Net cash provided by financing activities 2,169,000 1,613,000
------------ ------------
Net decrease in cash and cash equivalents (614,000) (1,969,000)
Cash and cash equivalents at beginning
of period 1,378,000 2,900,000
------------ ------------
Cash and cash equivalents at end of period $764,000 $931,000
============ ============
Supplemental Disclosures of Cash Flow Information:
- --------------------------------------------------
Cash paid during the period for:
Interest $583,000 $532,000
Income taxes 75,000 15,000
<FN>
See accompanying notes to condensed consolidated financial statements.
</FN>
</TABLE>
- 4 -
<PAGE>
EVANS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. The financial information included herein was prepared in conformity
with generally accepted accounting principles and such principles were
applied on a basis consistent with those reflected in the 1996 Form
10-K Annual Report filed with the Securities and Exchange Commission.
The accompanying financial data should be read in conjunction with
the notes to consolidated financial statements contained in the 1996
Form 10-K Annual Report.
The information furnished herein, other than the Condensed Consolidated
Balance Sheet as of March 2, 1996, is unaudited and includes all adjustments
and accruals consisting only of normal recurring adjustments which
are, in the opinion of management, necessary for a fair statement of
results for the interim periods. The Condensed Consolidated Balance
Sheet as of March 2, 1996 has been derived from, and does not include
all the disclosures contained in the audited financial statements as
of and for the year ended March 2, 1996.
2. Because of the seasonal nature of the Company's business, operating
results for the first twenty-six weeks are not considered to be indicative
of the results that may be expected for the full year. Historically,
the Company realizes a major portion of its annual revenues and most
of its earnings in the fourth quarter of its fiscal year.
3. Common share equivalents were not included in the computation of
earnings per share for the thirteen and twenty-six weeks ended August
31, 1996 and August 26, 1995, because the periods resulted in net losses
and the effect would be antidilutive.
4. Certain reclassifications have been made to the Condensed Consolidated
Balance Sheets for August 26, 1995 and March 2, 1996 and the Condensed
Consolidated Statement of Cash Flows for the twenty-six weeks ended
August 26, 1995 to conform to the presentation for August 31, 1996.
Such reclassifications did not effect the previously reported operating
results.
5. On October 11, 1996, the Company amended its revolving credit agreement
to reflect its current operating condition.
- 5 -
<PAGE>
EVANS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, continued
(Unaudited)
6. On September 27, 1996, the Company entered into a contract, subject
to due diligence on behalf of the purchaser, to sell its property in
Fort Worth, Texas for $350,000. The purchase agreement, as contemplated,
is expected to close no later than December 13, 1996. Proceeds will be
used to pay down long-term debt as required by the loan agreement.
7. Subsequent to the second quarter of fiscal 1997, the Company, pursuant
to the Evans, Inc. 1994 Stock Option Program, granted 41,500 options
to 62 key employees at the price of $2.25 being 100% of market value
on the date of grant.
- 6 -
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Liquidity and Capital Resources
Cash and cash equivalents at August 31, 1996 were $764,000 as compared
to $1,378,000 at March 2, 1996. The decrease was due to cash used
in operating activities of $2,528,000 and cash used in investing activities
of $255,000, partially offset by cash provided by financing activities
of $2,169,000.
The cash used in operating activities was due primarily to the net
loss of $2,187,000, an increase in merchandise inventories of $2,684,000
due to the seasonal nature of the Company's business and a decrease
in accounts payable of $408,000, partially offset by a decrease in
accounts receivable of $3,208,000.
The cash used in investing activities was largely the result of additions
to property and equipment of $260,000.
The cash provided by financing activities was due primarily to an increase
in notes payable of $2,488,000, partially offset by principal payments
on long-term debt of $319,000.
Working capital at August 31, 1996 was $7,718,000 as compared to $9,785,000
at March 2, 1996.
The revolving line of credit which expires May 31, 1998 is considered
adequate to finance seasonal inventory requirements as well as commitments
for capital expenditures during fiscal 1997.
Results of Operations
Total revenues for the second quarter ended August 31, 1996 decreased
$1,353,000 (11.0%) as compared to the same period last year. Overall,
fur merchandise sales were comparable with the prior year. Included
in the second quarter were $335,000 in sales associated with a successful
store closing event related to the termination of the Company's license
agreement with Strawbridge & Clothier partially offset by a $261,000
(8.8%) decrease at comparable locations and an $81,000 decrease associated
with locations closed subsequent to the second quarter of the prior
year. Women's ready-to-wear sales decreased $1,238,000 (25.0%) due
primarily to a decrease of $1,088,000 (22.6%) in sales at comparable
locations and a decrease of $150,000 in sales associated with a Company
owned location closed subsequent to the second quarter of the prior
year. Service revenues decreased $108,000 (2.5%) due primarily to
a decrease of $210,000 in sales associated with locations closed subsequent
to the second quarter of the prior year partially offset by an increase
of $102,000 (2.6%) in sales at comparable locations.
- 7 -
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Results of Operations, continued
Total revenues for the first six months decreased $5,131,000 (17.3%)
as compared to the same period last year. Fur merchandise sales decreased
$1,573,000 (19.1%) due primarily to a $1,150,000 (15.6%) decrease in
sales at comparable locations and a $758,000 decrease in sales associated
with locations closed during and subsequent to the first quarter of
the prior year. These decreases were partially offset by $335,000
in sales associated with a successful store closing event as a result
of the termination of the Company's license agreement with Strawbridge
& Clothier. Women's ready-to-wear sales decreased $3,133,000 (26.0%)
due primarily to a $2,467,000 (21.7%) decrease in sales at comparable
locations and a $666,000 decrease in sales associated with two Company
owned locations closed during and subsequent to the first quarter of
the prior year. The decrease in women's ready-to-wear sales at comparable
locations is indicative of the fiercely competitive retail atmosphere in
women's apparel. Service revenues decreased $425,000 (4.6%) due primarily
to a $688,000 decrease in sales associated with locations closed during
and subsequent to the first quarter of the prior year, partially offset
by an increase of $263,000 (3.1%) in sales at comparable locations.
Cost of goods and services sold, buying and occupancy costs as a percentage
of total revenues for the second quarter and first six months decreased
(70.2% versus 72.8% and 66.2% versus 70.8%, respectively) in comparison
with the prior year periods. Cost of goods and services sold as a
percentage of total revenues for the second quarter and first six months
decreased (49.4% versus 52.2% and 47.1% versus 53.5%, respectively)
due primarily to the Company's continuing to achieve higher gross margins
on merchandise sales. Buying costs as a percentage of total revenues
for the second quarter and first six months were comparable with prior
year levels. Occupancy costs as a percentage of total revenues for
the second quarter were comparable with the same period last year.
Occupancy costs as a percentage of total revenues for the first six
months increased (15.4% versus 14.3%) due primarily to the impact of
fixed rental costs as measured against the overall decrease in sales.
Total selling and general expenses decreased $157,000 (2.9%) and $852,000
(7.1%) for the second quarter and first six months, respectively, as
compared to the prior year periods. Payroll and related fringe benefits
decreased $161,000 (4.1%) and $618,000 (7.4%) for the second quarter
and first six months, respectively, due primarily to costs associated
with locations closed during and subsequent to the first quarter of
the prior year and staff reductions initiated subsequent to the second
quarter of the prior year. Advertising expense decreased $58,000 (16.9%)
and $292,000 (19.5%) for the second quarter and first six months, respectively.
- 8 -
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Results of Operations, continued
Interest expense for the second quarter and first six months increased
$30,000 (9.3%) and $83,000 (13.7%) respectively, due primarily to higher
average short-term borrowings as compared to the prior year periods.
The lower pre-tax losses for the second quarter and first six months
($2,406,000 versus $2,473,000 and $3,770,000 versus $4,220,000, respectively)
were due largely to the increase in gross margin percentages and the
decrease in selling and general expenses in comparison with the same
periods last year.
The income tax credits for the second quarter and first six months
of the prior year were offset by increases in the Company's valuation
allowance with respect to the future tax benefits of the net operating
losses as a result of the uncertainty of their ultimate realization.
- 9 -
<PAGE>
PART II - OTHER INFORMATION.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Part I. Exhibit 4.53
Amendment No. 6 to Loan and Security Agreement between
Registrant and Transamerica Business Credit Corporation.
Exhibit 11
Computation of earnings per share.
(b) Reports on Form 8-K -- There were no reports on Form 8-K
filed during the thirteen weeks ended August 31, 1996.
Items other than those listed are omitted because they are not required.
- 10 -
<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
of the undersigned thereunto duly authorized.
EVANS, INC.
DATE: October 11, 1996 PATRICK J. REGAN
PATRICK J. REGAN
President and
Chief Executive Officer
DATE: October 11, 1996 WILLIAM E. KOZIEL
WILLIAM E. KOZIEL
Vice President and
Chief Financial Officer
- 11 -
<PAGE>
EVANS, INC. AND SUBSIDIARIES
Exhibit Page Nos.
4.53 13 - 14
11 15
- 12 -
<PAGE>
AMENDMENT NO. 6 TO LOAN AND SECURITY AGREEMENT
AMENDMENT NO. 6, dated as of October 11, 1996, between TRANSAMERICA
BUSINESS CREDIT CORPORATION ("Lender"), and EVANS, INC. ("Borrower"),
and Borrower's wholly-owned Subsidiaries, KOSLOW'S, INC. ("Koslow")
and EVANS - ROSENDORF OF MARYLAND, INC. ("Rosendorf") (Koslow and Rosendorf
individually, a "Borrowing Subsidiary", and collectively, "Borrowing
Subsidiaries").
Lender and Borrower and Borrowing Subsidiaries are parties to a Loan
and Security Agreement dated as of May 31, 1995, as amended by Amendment
No. 1 to Loan and Security Agreement dated as of October 3, 1995, by
Amendment No. 2 to Loan and Security Agreement dated as of November
20, 1995, by Amendment No. 3 to Loan and Security Agreement dated as
of January 5, 1996, by Amendment No. 4 to Loan and Security Agreement
dated as of May 30, 1996, and by Amendment No. 5 to Loan and Security
Agreement dated as of July 5, 1996 (the "Loan and Security Agreement").
Lender, Borrower and Borrowing Subsidiaries desire to amend the Loan
and Security Agreement in certain respects and, accordingly, the parties
hereto agree as follows:
1. Definitions. Except as otherwise provided herein, the terms defined
in the Loan and Security Agreement are used herein as defined therein.
2. Amendment. Effective as of August 31, 1996, Section 7.3(E) of
the Loan and Security Agreement is amended and restated as follows:
"(E) Average Inventory Days (i) at the end of the second Fiscal Quarter
of the 1997 Fiscal Year, of not more than 420, (ii) at the end of the
third Fiscal Quarter of the 1997 Fiscal Year, of not more than 208,
and (iii) at the end of each Fiscal Quarter, commencing with the fourth
Fiscal Quarter of the 1997 Fiscal Year, not more than the number set
opposite such Fiscal Quarter in the following schedule:
Fiscal Quarter Average Inventory Days
First 300
Second 375
Third 200
Fourth 125"
3. Term Note B. The maturity date of Term Note B is extended to the
earlier of (a) the date on which Borrower sells its owned Real Property
commonly described as 405 West Seventh Street, Fort Worth, Texas, or
(b) December 31, 1996.
4. Representation and Warranty. Borrower and each Borrowing Subsidiary
represents and warrants to Lender that the execution and delivery by
Borrower and each Borrowing Subsidiary of this Amendment No. 6 are
within Borrower's and each Borrowing Subsidiary's corporate power,
have been duly authorized by all necessary or proper corporate action,
- 13 -
<PAGE>
are not in contravention of any provision of Borrower's or either Borrowing
Subsidiary's Articles or Certificate of Incorporation or By-Laws, will
not violate any law or regulation, or any order or decree of any court
or governmental instrumentality, will not conflict with or result in
the breach or termination of, constitute a default under, or accelerate
any performance required by, any indenture, mortgage, deed of trust,
lease, agreement or other instrument to which Borrower or either Borrowing
Subsidiary is a party or by which Borrower or either Borrowing Subsidiary
or any of its property is bound and do not require the consent or approval
of any governmental body, agency, authority or any other person.
4. Miscellaneous. Except as herein provided, the Loan and Security
Agreement shall remain unchanged and in full force and effect. This
Amendment No. 6 may be executed in any number of separate counterparts,
each of which shall, collectively and separately, constitute one agreement.
This Amendment No. 6 and the obligations arising hereunder shall be
governed by, and construed and enforced in accordance with, the laws
of the State of Illinois applicable to contracts made and performed
in such state, without regard to the principles thereof regarding conflict
of laws, and any applicable laws of the United States of America.
IN WITNESS WHEREOF, this Amendment No. 6 has been duly executed as
of the day and year specified at the beginning hereof.
TRANSAMERICA BUSINESS CREDIT EVANS, INC.
CORPORATION
By: MATTHEW N. MCALPINE By: WILLIAM E. KOZIEL
Name: MATTHEW N. MCALPINE Name: WILLIAM E. KOZIEL
Title: Senior Account Executive Title: Vice President and
Chief Financial Officer
KOSLOW'S, INC.
By: WILLIAM E. KOZIEL
Name: WILLIAM E. KOZIEL
Title: Vice President and
Chief Financial Officer
EVANS - ROSENDORF OF
MARYLAND, INC.
By: WILLIAM E. KOZIEL
Name: WILLIAM E. KOZIEL
Title: Vice President and
Chief Financial Officer
- 14 -
<PAGE>
<TABLE>
EXHIBIT 11
EVANS, INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
<CAPTION>
Thirteen weeks ended Twenty-six weeks ended
-------------------------- --------------------------
Aug. 31, Aug. 26, Aug. 31, Aug. 26,
1996 1995 1996 1995
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Primary:
--------
Weighted average
shares outstanding 4,918,301 4,918,301 4,918,301 4,918,301
Incremental shares
for exercise of
stock options 99,165 -- 42,487 --
------------ ------------ ------------ ------------
Adjusted number of
common shares
outstanding 5,017,466 4,918,301 4,960,788 4,918,301
============ ============ ============ ============
Net loss ($1,396,000) ($2,473,000) ($2,187,000) ($4,220,000)
============ ============ ============ ============
Net loss per share ($0.28) ($0.50) ($0.44) ($0.86)
======= ======= ======= =======
Fully diluted:
--------------
Weighted average
shares outstanding 4,918,301 4,918,301 4,918,301 4,918,301
Incremental shares
for exercise of
stock options 160,900 -- 160,900 --
------------ ------------ ------------ ------------
Adjusted number of
common shares
outstanding 5,079,201 4,918,301 5,079,201 4,918,301
============ ============ ============ ============
Net loss ($1,396,000) ($2,473,000) ($2,187,000) ($4,220,000)
============ ============ ============ ============
Net loss per share ($0.27) ($0.50) ($0.43) ($0.86)
======= ======= ======= =======
- 15 -
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> Mar-01-1997
<PERIOD-START> Mar-03-1996
<PERIOD-END> Aug-31-1996
<CASH> 764,000
<SECURITIES> 0
<RECEIVABLES> 12,577,000
<ALLOWANCES> 0
<INVENTORY> 17,445,000
<CURRENT-ASSETS> 33,613,000
<PP&E> 20,931,000
<DEPRECIATION> 10,831,000
<TOTAL-ASSETS> 47,066,000
<CURRENT-LIABILITIES> 25,895,000
<BONDS> 0
0
0
<COMMON> 1,267,000
<OTHER-SE> 18,324,000
<TOTAL-LIABILITY-AND-EQUITY> 47,066,000
<SALES> 15,593,000
<TOTAL-REVENUES> 24,477,000
<CGS> 11,536,000
<TOTAL-COSTS> 16,197,000
<OTHER-EXPENSES> (5,000)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 687,000
<INCOME-PRETAX> (3,770,000)
<INCOME-TAX> 1,583,000
<INCOME-CONTINUING> (2,187,000)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,187,000)
<EPS-PRIMARY> .44
<EPS-DILUTED> .44
</TABLE>
