FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Quarterly Report Under Section 13 or 15 (d)
of the Securities Exchange Act of 1934
For Quarter Ended September 30, 1996
Commission File Number 0-11720
AIR TRANSPORTATION HOLDING COMPANY, INC.
(Exact name of registrant as specified in its charter)
Delaware 52-1206400
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Post Office Box 488, Denver, North Carolina 28037
(Address of principal executive offices)
(704) 377-2109
(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
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
2,614,433 Common Shares, par value of $.25 per share were outstanding as
of November 11, 1996.
This filing contains 16 pages.
The exhibit index is on page 15.
<PAGE>
AIR TRANSPORTATION HOLDING COMPANY, INC. AND SUBSIDIARIES
INDEX
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Statements of Earnings
for the three and six-month periods ended
September 30, 1996 and 1995 (Unaudited) 3
Consolidated Balance Sheets at
September 30, 1996 (Unaudited)
and March 31, 1996 4
Consolidated Statements of Cash
Flows for the six-month periods
ended September 30, 1996 and 1995 (Unaudited) 5
Notes to Consolidated Financial
Statements (Unaudited) 6-7
Item 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations 8-11
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 12-14
Exhibit Index 15
Exhibits 1
<PAGE>
<TABLE>
AIR TRANSPORTATION HOLDING COMPANY, INC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
<CAPTION>
Three Months Ended Six Months Ended
September 30, September 30,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Operating Revenues:
Cargo $ 4,467,154 4,760,715 $ 8,840,836 9,313,132
Maintenance and other 3,866,573 3,933,369 7,616,498 7,294,734
8,333,727 8,694,084 16,457,334 16,607,866
Operating Expenses:
Flight operations 3,172,405 3,060,820 6,061,255 5,943,335
Maintenance 3,697,929 4,093,058 7,138,918 7,489,467
General and administrative 1,046,398 915,120 2,070,352 1,875,142
Depreciation and amort 103,598 121,038 221,362 246,783
Facility start-up expenses 167,000 - 210,000 -
8,187,330 8,190,036 15,701,887 15,554,727
Operating Income 146,397 504,048 755,447 1,053,139
Non-operating Income:
Gain on sale of asset & other (180,716) (159) (182,359) (263,081)
Earnings Before Income Taxes 327,113 504,207 937,806 1,316,220
Provision For Income Taxes 198,622 203,649 403,956 496,113
Net Earnings $ 128,491 300,558 $ 533,850 820,107
Weighted Average Shares 2,798,311 3,058,651 2,808,811 3,081,150
Net Earnings Common Share $0.05 $0.10 $0.19 $0.27
<FN>
See notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
AIR TRANSPORTATION HOLDING COMPANY, INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<CAPTION>
September 30, 1996 March 31, 1996
(Unaudited)
<S> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents $ 1,344,776 2,213,841
Short term investments 2,545,412 1,889,819
Accounts receivable, net 2,773,088 3,133,670
Expendable parts and supplies 916,901 725,503
Prepaid expense and other 18,423 61,325
Deferred tax asset, net 345,115 440,000
Total Current Assets 7,943,715 8,464,158
Property and equipment 3,092,024 3,248,834
Less accumulated depreciation (1,768,767) (1,678,980)
1,323,257 1,569,854
Excess Cost of Subsidiary - 33,834
Deferred Tax Asset, Net - 27,838
Other 91,715 124,387
$ 9,358,687 10,220,071
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 134,517 1,003,081
Accrued liabilities 1,605,684 1,555,284
Income taxes 125,957 238,113
Current maturities of long term debt 6,149 5,976
Total Current Liabilities 1,872,307 2,802,454
Long-Term Debt, Less Current Maturities 529 3,649
Stockholders' Equity:
Preferred stock, $1 par value, authorized
10,000,000 shares, none issued -
Common stock, par value $.25; authorized
4,000,000 shares; 2,614,433 and
2,725,433 shares issued 653,603 681,358
7,156,548 7,299,045
Deficit (324,300) (566,435)
7,485,851 7,413,968
$ 9,358,687 10,220,071
<FN>
See notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
AIR TRANSPORTATION HOLDING COMPANY, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<CAPTION>
Six Months Ended
September 30,
1996 1995
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 533,850 820,107
Adjustments to reconcile net earnings to net
cash provided by (used in) operating
activities:
Depreciation and amortization 221,362 246,783
Change in deferred tax asset 122,723 199,258
Gain on sale of fixed assets (182,359) (263,157)
Charge in lieu of income taxes 15,837 142,173
Working capital changes:
Accounts receivable 360,582 958,510
Parts and supplies (191,398) (76,196)
Prepaid expense and other 75,574 25,574
Accounts payable (650,129) (1,324,559)
Accrued expenses 50,400 (334,046)
Income taxes payable (112,156) 7,406
(289,564) (418,254)
Net cash provided by operating activities 244,286 401,853
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of fixed assets 415,000 450,000
Capital expenditures (189,409) (54,477)
Short term investments (655,593) 85,270
Net cash provided by (used in) investing (430,002) 480,793
activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on long-term debt (2,947) (1,257)
Repurchase of common stock (466,967) (269,560)
Exercise of stock options 5,000 4,000
Dividend (218,435) (200,615)
Net cash used in financing activities (683,349) (467,432)
NET (DECREASE) INCREASE IN CASH AND CASH (869,065) 415,214
EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 2,213,841 979,044
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,344,776 1,394,258
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION:
Cash paid during the period for:
Interest $ 390 130
Income/Franchise taxes 384,424 75,579
<FN>
See notes to consolidated financial statements.
</TABLE>
<PAGE>
AIR TRANSPORTATION HOLDING COMPANY, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
A. Financial Statements
The Consolidated Balance Sheet as of September 30, 1996, the Consolidated
Statements of Earnings for the three and six-month periods ended September 30,
1996 and 1995 and the Consolidated Statements of Cash Flows for the six-month
periods ended September 30, 1996 and 1995 have been prepared by Air
Transportation Holding Company, Inc. (the Company) without audit. In the
opinion of management, all adjustments (consisting only of normal recurring
adjustments) necessary to present fairly the financial position, results of
operations and cash flows as of September 30, 1996, and for prior periods
presented, have been made.
It is suggested that these financial statements be read in conjunction
with the financial statements and notes thereto included in the Company's
Annual Report on Form 10-K for the year ended March 31, 1996. The results of
operations for the period ended September 30 are not necessarily indicative of
the operating results for the full year.
B. Income Taxes
The tax effect of temporary differences and net operating loss
carryforwards that gave rise to the Company's deferred tax asset is broken
down between current and noncurrent amounts, where applicable, in the
accompanying consolidated balance sheets.
The Company has recorded a valuation allowance in order to reduce its
deferred tax asset to an amount which is more likely than not to be realized.
Changes in the valuation allowance, related to future utilization of net
operating losses, reduced the provision for income taxes by $42,000 and
$43,000, respectively, during the six-months ended September 30, 1996 and
1995. As of September 30, 1996, all of the valuation allowance of
approximately $112,000 relates to potential benefits from post-acquisition
carryforwards. Benefits derived from pre-acquisition carryforwards, amounting
to $16,000 and $189,000, respectively, during the six-months ended September
30, 1996 and 1995, have been credited directly to goodwill.
The income tax provisions for the three and six-months ended September
30, 1996 and 1995 differ from the federal statutory rate primarily as a result
of state income taxes, changes from book to tax income and adjustment to the
valuation allowance.
The Company completed the utilization of all federal net operating loss
carryforwards available for tax return purposes during the quarter ended
September 30, 1996. These carryforwards resulted in a reduction of goodwill,
until goodwill was reduced to zero in the quarter ended June 30, 1996.
<PAGE>
C. Net Earnings Per Share
Primary earnings per share has been compiled by dividing net earnings by
weighted average number of common shares outstanding during each period.
There was no difference between primary and fully diluted earnings per share.
Shares issuable under employee stock options are considered common share
equivalents and were included in the weighted average common shares as of
September 30, 1996 and 1995.
D. Reclassifications
Certain reclassifications have been made in the 1995 financial statements
to conform with the 1996 presentation.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
Overview
The Company's revenue is generated primarily through its air cargo
subsidiaries, Mountain Air Cargo, Inc. (MAC) and CSA Air, Inc. (CSA), which
are short-haul express air freight carriers flying nightly out of 78 cities,
principally located in 30 states in the eastern half of the United States and
in Puerto Rico, Canada and the Virgin Islands. During the periods covered by
this report, MAC and CSA provided air delivery service exclusively to Federal
Express Corporation (Customer). As of September 30, 1996, MAC and CSA
operated an aggregate of 92 aircraft under agreements with the Customer flying
approximately 78 routes.
Separate agreements cover the three types of aircraft operated by MAC and
CSA--Cessna Caravan, Fokker F-27, and Short Brothers SD3-30. Cessna Caravan
and Fokker F-27 aircraft (a total of 90 aircraft at September 30, 1996) are
owned by and dry-leased from the Customer, and Short Brothers SD3-30 aircraft
(two aircraft at September 30, 1996) are owned by the Company and operated
under wet-lease arrangements. Pursuant to such agreements, the Customer
determines the type of aircraft and schedule of routes to be flown by MAC and
CSA, with all other operational decisions made by the Company. Under the
terms of the dry-lease service agreements, the Company passes through to its
customer certain cost components of its operations without markup-the cost of
fuel, flight crews, landing fees, outside maintenance, parts and certain other
direct operating costs are included in operating expenses and billed to the
customer as cargo and maintenance revenue.
Agreements are renewable annually and may be terminated by the Customer
at any time upon 15 to 30 days' notice. The Company believes that the short
term and other provisions of its agreements with the Customer are standard
within the air freight contract delivery service industry. The Company is not
contractually precluded from providing air freight services to other express
delivery firms and has provided such services to other firms in the past.
Loss of its contracts with the Customer would have a material adverse effect
on the Company.
In 1993, to expand its revenue base, the Company organized Mountain
Aircraft Services, LLC ("MAS") to sell aircraft parts and offer engine
overhaul management and engine component repair services to the commercial and
military aviation industry. For the six months ended September 30, 1996, MAS
contributed 11% of the Company's consolidated revenues.
<PAGE>Results of Operations
Consolidated revenue decreased $151,000 (.9%) to $16,457,000 and $360,000
(4.1%), respectively, for the six and three-month periods ended September 30,
1996 compared to their equivalent 1995 periods. The net changes in revenue
primarily resulted from decreases in air freight service revenue related to
Company-owned aircraft.
Operating expenses increased $147,000 (.9%) to $15,702,000 for the six-
month period ended September 30, 1996 and $3,000 (0%) to $8,187,000 for the
three-month period ended September 30, 1996 compared to their equivalent 1995
periods. The change in operating expenses for the six-month period consisted
of the following: cost of flight operations increased $118,000 (2.0%),
primarily due to increased payroll and travel cost, which were partially
offset by decreased cost for fuel and engine reserves; maintenance expense
decreased $350,000 (4.7%), primarily as a result of decreased outside
contractor services, repairs on aircraft and stock purchases; depreciation
decreased $25,000 (10.3%) as a result of decreased depreciation related to the
sale of aircraft in 1995 and 1996; general and administrative expense
increased $195,000 (10.4%) as a result of increased staffing, salary and wage
rates, and increased insurance and employee benefits. Facility start-up
expenses reflect the $210,000 in cost associated with the Company's start-up
and relocation of maintenance operations to Kinston, N.C.
In August 1996 the Company relocated its MAC and MAS maintenance and
repair operations to a new state-of-the-art 62,000 square foot hangar facility
located at the North Carolina Global TransPark in Kinston, North Carolina.
Relocation and start-up cost amounted to $210,000 and $167,000, respectively,
for the six and three-month periods ended September 30, 1996. Although the
transfer of equipment and personnel to the new facility went smoothly, the
effects of Hurricane Fran, which occurred ten days after the initial
relocation, had damaging and disruptive effects on both the facility, and the
initial start-up of operations. It is estimated that the start-up and
subsequent disruption and diversion of billable personnel to damage control,
set-up and repair affected the Company's operating income by an additional
$120,000.
The $81,000 decrease in non-operating income reflects a $180,000 gain on
sale of an aircraft in the quarter ended September 30, 1996 compared to a
$263,000 gain on disposal of two aircraft in the quarter ended June 30, 1995.
The Company currently has no aircraft available for sale.
<PAGE>
Results of Operations (cont'd)
The provision for income taxes for the six-month period ended September
30, 1996 decreased $92,000 (18.6%)and $5,000 (2.5%) for the three-month period
ended September 30, 1996 compared to their respective 1995 periods due to
decreased taxable income partially offset by increases in effective tax rates.
The effective income tax rate increased to 43% from 38% and to 60% from 40%,
respectively, for the six and three-month periods ended September 30, 1996
versus 1995 due to book to tax income adjustments and second quarter changes
in the tax provision due to non-utilization of deferred tax asset valuation
allowance.
Liquidity and Capital Resources
As of September 30, 1996 the Company's working capital amounted to
$6,071,000, an increase of $410,000 compared to March 31, 1996. The net
increase primarily resulted from profitable operations, as well as a $818,000
decrease in accounts payable and accrued liabilities, a $655,000 increase in
short term investments, partially offset by a $361,000 decrease in accounts
receivable, a $869,000 decrease in cash and a $95,000 decrease in deferred tax
assets.
The Company's accounts receivable and inventory financing line provides
credit in the aggregate of up to $2,250,000 to July 1997. Loans under the line
of credit bear interest at the lender's prime rate.
Substantially all of the Company's assets, excluding aircraft, have been
pledged as collateral under this financing arrangement. As of September 30,
1996 the Company was in a net investment position against its credit line.
Management believes that funds anticipated from operations and existing credit
facilities will provide adequate cash flow to meet the Company's financial
needs for the foreseeable future.
The respective six-month periods ended September 30, 1996 and 1995
resulted in the following changes in cash flow: operating activities provided
$244,000 and $402,000, investing activities used $430,000 and provided
$481,000 and financing activities used $683,000 and $467,000. Net cash
decreased $869,000 and increased $415,000 for the respective six-month periods
ended September 30, 1996 and 1995.
<PAGE>Liquidity and Capital Resources (cont'd)
Cash provided by operating activities was $158,000 less for the six-
months ended September 30, 1996 compared to the similar 1995 period
principally due to decreased net earnings. Cash used in investing activities
for the six-months ended September 30, 1996 was approximately $911,000 more
than the comparable period in 1995, principally due to purchase of short-term
investments. Cash used in financing activities was $216,000 more in the 1996
six-month period due the repurchase of common stock.
During the six months ended September 30, 1996 the Company repurchased
115,000 shares of its common stock at a total cost of $467,000. Pursuant to
its previously announced stock repurchase program, $354,000 remains available
for repurchase of common stock.
The Company's relocation of its aircraft maintenance and repair
operations to Kinston, North Carolina was primarily completed in the quarter
ended September 30, 1996. The relocation reduced the Company's cash flow by
approximately $390,000 for the six-month period ended September 30, 1996.
Other than the above relocation, there are currently no commitments for
significant capital expenditures and none are anticipated during the remainder
of the current fiscal year. The Company paid a $.08 per share cash dividend
in April 1996; no determination has been made whether additional dividends
will be paid in the future.
Impact of Inflation
The Company believes the impact of inflation and changing prices on its
revenues and earnings is not material since the major cost components of its
operations, consisting principally of fuel, aircraft, crew and certain
maintenance costs are passed through to its customer under current contract
terms.
<PAGE>
PART II -- OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
No. Description
3.1 Certificate of Incorporation, as amended, incorporated by reference
to Exhibit 3.1 of the Company's Annual Report on Form 10-K for the
fiscal year ended March 31, 1994
3.2 By-laws of the Company, incorporated by reference to Exhibit 3.2 of
the Company's Annual Report on Form 10-K for the fiscal year ended
March 31, 1996.
4.1 Specimen Common Stock Certificate, incorporated by reference to
Exhibit 4.1 of the Company's Annual Report on Form 10-K for the fiscal year
ended March 31, 1994
10.1 Aircraft Dry Lease and Service Agreement dated February 2, 1994
between Mountain Air Cargo, Inc. and Federal Express Corporation, incorporated
by reference to Exhibit 10.13 to Amendment No. 1 on Form 10-Q/A to the
Company's Quarterly Report on Form 10-Q for the quarterly period ended
December 31, 1993
10.2 Loan Agreement among NationsBank of North Carolina, N.A., the
Company and its subsidiaries, dated January 17, 1995, incorporated by
reference to Exhibit 10.7 to the Company's Quarterly Report on Form 10-Q for
the period ended December 31,1994
10.3 Aircraft Wet Lease Agreement dated April 1, 1994 between Mountain
Air Cargo, Inc. and Federal Express Corporation, incorporated by reference to
Exhibit 10.4 of Amendment No. 1 on Form 10-Q/Q to the Company's Quarterly
Report on Form 10-Q for the period ended September 30, 1994
10.4 Adoption Agreement regarding the Company's Master 401(k) Plan and
Trust, incorporated by reference to Exhibit 10.7 to the Company's
Annual Report on Form 10-K for the fiscal year ended March 31, 1993*
10.5 Form of options to purchase the following amounts of Common Stock
issued by the Company to the following executive officers during the
following fiscal years ended March 31:*
Number of Shares
Executive Officer 1993 1992 1991
J. Hugh Bingham 150,000 150,000 200,000
John J. Gioffre 100,000 100,000 125,000
William H. Simpson 200,000 200,000 300,000
incorporated by reference to Exhibit 10.8 of the Company's Annual
Report on Form 10-K for the fiscal year ended March 31, 1993.
10.6 Premises and Facilities Lease dated November 16, 1995 between Global
TransPark Foundation, Inc. and Mountain Air Cargo, Inc., incorporated by
reference to Exhibit 10.5 to Amendment No. 1 on form 10-Q/A to the Company's
Quarterly Report on Form 10-Q for the period ended December 31, 1995,
10.7 Employment Agreement dated January 1, 1996 between the Company,
Mountain Air Cargo Inc., CSA Air Inc. and Mountain Aircraft
Services, LLC and David Clark, incorporated by reference to Exhibit
10.7 to the Company's Annual Report Form 10-K for the fiscal year
ended March 31, 1996.*
10.8 Employment Agreement dated January 1, 1996 between the Company,
Mountain Air Cargo Inc. and Mountain Aircraft Services, LLC and
William H. Simpson, incorporated by reference to Exhibit 10.8 to the
Company's Annual Report Form 10-K for the fiscal year ended March
31, 1996.*
10.9 Employment Agreement dated January 1, 1996 between the Company,
Mountain Air Cargo Inc. and Mountain Aircraft Services, LLC and John
J. Gioffre, incorporated by reference to Exhibit 10.9 to the
Company's Annual Report Form 10-K for the fiscal year ended March
31, 1996.*
10.10 Employment Agreement dated January 1, 1996 between the Company,
Mountain Air Cargo Inc. and Mountain Aircraft Services, LLC and J.
Hugh Bingham, incorporated by reference to Exhibit 10.10 to the
Company's Annual Report Form 10-K for the fiscal year ended March
31, 1996.*
11.1 Computation of Primary and Fully Diluted Earnings per Common Share
21.1 List of subsidiaries of the Company, incorporated by reference to
Exhibit 21.1 of the Company's Annual Report on Form 10-K for the
fiscal year ended March 31, 1994
27.1 Financial Data Schedule (For SEC use only)
_______________________
* Management compensatory plan or arrangement required to be filed as an
exhibit to this report.
b. Reports on form 8-K
No Current Reports on Form 8-K were filed in the first quarter of the fiscal
1997.
<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 thereunto duly authorized.
AIR TRANSPORTATION HOLDING COMPANY, INC.
(Registrant)
Date: November 11, 1996 ___________________________
David Clark, Chief Executive Officer
Date: November 11, 1996 ___________________________
John J. Gioffre, Vice President-Finance
<PAGE>
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 thereunto duly authorized.
AIR TRANSPORTATION HOLDING COMPANY, INC.
(Registrant)
Date: November 11, 1996 /s/ David Clark
David Clark, Chief Executive Officer
Date: November 11, 1996 /s/ John Gioffre
John J. Gioffre, Vice President-Finance
<PAGE> AIR TRANSPORTATION HOLDING COMPANY, INC.
EXHIBIT INDEX
Exhibit PAGE
11.1 Computation of Primary and Fully Diluted
Earnings Per Common Share........................... 16
<TABLE>
AIR TRANSPORTATION HOLDING COMPANY, INC. AND SUBSIDIARIES
Exhibit 11.1
Computation for Primary and Fully Diluted Earnings Per Common Share
<CAPTION>
Three Months Ended Six Months Ended
1996 1995 1996 1995
<S> <C> <C> <C> <C>
NET EARNINGS $128,491 $300,558 $533,850 $820,107
WEIGHTED AVERAGE COMMON SHARES:
Primary:
Weighted average shares outstanding 2,614,433 2,804,600 2,624,933 2,825,766
Dilutive stock options 183,878 254,051 183,878 255,384
2,798,311 3,058,651 2,808,811 3,081,150
Fully Diluted:
Weighted average shares outstanding 2,614,433 2,804,600 2,624,933 2,825,766
Dilutive stock options 190,921 258,278 190,921 259,611
2,805,354 3,062,878 2,815,854 3,085,377
NET EARNINGS PER COMMON SHARE:
Primary $0.05 $0.10 $0.19 $0.27
Fully Diluted $0.05 $0.10 $0.19 $0.27
<FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
"This schedule contains summary financial information extracted from Air
Transportation Holding Company, Inc. SEC Form 10-Q for period ended September
30, 1996 (identify specific financial statements) and is qualified in its
entirety by reference to such financial statements."
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> SEP-30-1996
<CASH> 1344776
<SECURITIES> 2545412
<RECEIVABLES> 2773088
<ALLOWANCES> 0
<INVENTORY> 916901
<CURRENT-ASSETS> 7943715
<PP&E> 3092024
<DEPRECIATION> 1768767
<TOTAL-ASSETS> 9358687
<CURRENT-LIABILITIES> 1872307
<BONDS> 0
0
0
<COMMON> 653603
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 9358687
<SALES> 16872334
<TOTAL-REVENUES> 16872334
<CGS> 0
<TOTAL-COSTS> 16116887
<OTHER-EXPENSES> (182359)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 937806
<INCOME-TAX> 403956
<INCOME-CONTINUING> 533850
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 533850
<EPS-PRIMARY> 0.19
<EPS-DILUTED> 0.19
</TABLE>
