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 December 31, 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.
2,604,433 Common Shares, par value of $.25 per share were outstanding as
of February 11, 1997.
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 nine-month periods ended
December 31, 1996 and 1995 (Unaudited) 3
Consolidated Balance Sheets at
December 31, 1996 (Unaudited)
and March 31, 1996 4
Consolidated Statements of Cash
Flows for the nine-month periods
ended December 31, 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 Nine Months Ended
December 31, December 31,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Operating Revenues:
Cargo $ 4,763,349 4,804,623 $ 13,604,185 14,117,755
Maintenance and other 4,189,707 3,957,251 11,806,205 11,251,985
8,953,056 8,761,874 25,410,390 25,369,740
Operating Expenses:
Flight operations 3,306,428 3,078,322 9,367,683 9,021,657
Maintenance 3,993,513 3,863,942 11,132,431 11,353,410
General and administrative 1,102,440 1,037,755 3,172,792 2,912,896
Depreciation and amortization 95,681 119,104 317,043 365,887
Facility start-up expense 9,000 - 219,000 -
8,507,062 8,099,123 24,208,949 23,653,850
Operating Income 445,994 662,751 1,201,441 1,715,890
Non-operating Income:
Gain on sale of asset & other - (376) (182,359) (263,457)
Earnings Before Income Taxes 445,994 663,127 1,383,800 1,979,347
Provision For Income Taxes 141,414 309,339 545,370 805,452
Net Earnings $ 304,580 353,788 $ 838,430 1,173,895
Weighted Average Shares 2,793,977 2,982,343 2,803,199 3,048,215
Net Earnings Per Common Share $0.11 $0.12 $0.30 $0.38
<FN>
See notes to
consolidated
financial statements.
</TABLE>
<PAGE>
<TABLE>
AIR TRANSPORTATION HOLDING COMPANY, INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<CAPTION>
December 31, 1996 March 31, 1996
(Unaudited)
<S> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents $ 1,467,956 2,213,841
Short term investments 3,055,412 1,889,819
Accounts receivable, net 2,639,319 3,133,670
Expendable parts and supplies 953,503 725,503
Prepaid expense and other 7,253 61,325
Deferred tax asset, net 344,980 440,000
Total Current Assets 8,468,423 8,464,158
Property and equipment 3,185,702 3,248,834
Less accumulated depreciation (1,852,448) (1,678,980)
1,333,254 1,569,854
Excess Cost of Subsidiary - 33,834
Deferred Tax Asset, Net - 27,838
Other 103,451 124,387
Total Assets $ 9,905,128 10,220,071
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 488,319 1,003,081
Accrued liabilities 1,445,752 1,555,284
Income taxes 216,704 238,113
Current maturities of long term debt 5,174 5,976
Total Current Liabilities 2,155,949 2,802,454
Long-Term Debt, Less Current Maturities - 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; 2,604,433 and
2,725,433 shares issued 651,103 681,358
Additional paid in capital 7,117,798 7,299,045
Deficit (19,722) (566,435)
7,749,179 7,413,968
Total Liabilities and Stockholders' Equity $ 9,905,128 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>
Nine Months Ended
December 31,
1996 1995
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 838,430 1,173,895
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation and amortization 317,043 365,887
Change in deferred tax asset 122,858 292,223
Gain on sale of fixed assets (182,359) (263,157)
Charge in lieu of income taxes 15,837 209,383
Changes in Assets and Liabilities:
Accounts receivable 494,351 1,290,686
Parts and supplies (228,000) (223,794)
Prepaid expense and other 75,008 37,575
Accounts payable (296,327) (1,408,231
)
Accrued expenses (109,532) (197,761)
Income taxes payable (21,409) 160,729
187,470 263,540
Net cash provided by operating activities 1,025,900 1,437,435
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of fixed assets 415,000 450,000
Capital expenditures (295,091) (107,895)
Purchase of short term investments (1,165,593 (653,571)
)
Net cash used in investing activities (1,045,684 (311,466)
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on long-term debt (4,451) (3,209)
Repurchase of common stock (508,215) (748,735)
Proceeds from exercise of stock options 5,000 4,000
Dividend paid (218,435) (200,615)
Net cash used in financing activities (726,101) (948,559)
NET (DECREASE) INCREASE IN CASH AND CASH (745,885) 177,410
EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 2,213,841 979,044
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,467,956 1,156,454
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION:
Cash paid during the period for:
Interest $ 491 664
Income/Franchise taxes 448,223 229,020
<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 December 31, 1996, the Consolidated
Statements of Earnings for the three and nine-month periods ended December 31,
1996 and 1995 and the Consolidated Statements of Cash Flows for the nine-month
periods ended December 31, 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 December 31, 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 December 31 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 $72,000 and
$95,000, respectively, during the nine-months ended December 31, 1996 and
1995. As of December 31, 1996, all of the valuation allowance of
approximately $82,000 relates to potential benefits from post-acquisition
carryforwards. Benefits derived from pre-acquisition carryforwards, amounting
to $16,000 and $265,000, respectively, during the nine-months ended December
31, 1996 and 1995, have been credited directly to goodwill.
The income tax provisions for the three and nine-months ended December
31, 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,
which 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
December 31, 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
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 December 31, 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 December 31, 1996) are
owned by and dry-leased from the Customer, and Short Brothers SD3-30 aircraft
(two aircraft at December 31, 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 nine months ended December 31, 1996, MAS
contributed 10% of the Company's consolidated revenue.
<PAGE>Results of Operations
Consolidated revenue increased $40,000 (.1%) to $25,410,000 and $191,000
(2.2%) to $8,953,000, respectively, for the nine and three-month periods ended
December 31, 1996 compared to their equivalent 1995 periods. The nine-month
period net increase in revenue primarily resulted from decreases in air
freight service revenue related to Company-owned aircraft, one of which was
sold in the current years' second quarter, offset by increased engine overhaul
and parts revenue. The three-month period net increase resulted from
increased engine overhaul, parts and maintenance revenue offset by decreased
Company-owned aircraft revenue.
Operating expenses increased $555,000 (2.3%) to $24,209,000 for the nine-
month period ended December 31, 1996 and $408,000 (5.0%) to $8,507,000 for the
three-month period ended December 31, 1996 compared to their equivalent 1995
periods. The change in operating expenses for the nine-month period consisted
of the following: cost of flight operations increased $346,000 (3.8%),
primarily due to increased wages and travel cost, which were partially offset
by decreased cost for engine reserves; maintenance expense decreased $221,000
(5.7%), primarily as a result of decreased outside contractor services, cost
of parts and stock purchases which offset increased maintenance staffing;
depreciation and amortization decreased $49,000 (13.4%) as a result of
goodwill being fully amortized in the current years' first quarter and
decreased depreciation related to the sale of aircraft in 1996; general and
administrative expense increased $260,000 (8.9%) as a result of increased
insurance and employee benefits, staffing, salary and wage rates. Facility
start-up expenses reflect $219,000 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 $219,000 for the nine-month period
ended December 31, 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 increased the Company's
operating expenses 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 gains
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 decreased $260,000 for the nine-month
period ended December 31, 1996 and decreased $168,000 for the three-month
period ended December 31, 1996 compared to their respective 1995 periods due
to decreased taxable income and changes in the effective tax rates.
Liquidity and Capital Resources
As of December 31, 1996 the Company's working capital amounted to
$6,312,000, an increase of $651,000 compared to March 31, 1996. The net
increase primarily resulted from profitable operations.
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 December 31,
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 nine-month periods ended December 31, 1996 and 1995
resulted in the following changes in cash flow: operating activities provided
$1,026,000 and $1,437,000, investing activities used $1,046,000 and $311,000
and financing activities used $726,000 and $949,000. Net cash decreased
$746,000 and increased $177,000 for the respective nine-month periods ended
December 31, 1996 and 1995.
<PAGE>Liquidity and Capital Resources (cont'd)
Cash provided by operating activities was $411,000 less for the nine-
months ended December 31, 1996 compared to the similar 1995 period principally
due to decreased net earnings and receivable collections. Cash used in
investing activities for the nine-months ended December 31, 1996 was
approximately $735,000 more than the comparable period in 1995, principally
due to purchase of short-term investments. Cash used in financing activities
was $223,000 less in the 1996 nine-month period due to a reduction in the
repurchase of common stock in 1996.
During the nine months ended December 31, 1996 the Company repurchased
125,000 shares of its common stock at a total cost of $508,000. Pursuant to
its previously announced stock repurchase program, $313,000 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 $399,000 for the nine-month period ended December 31, 1996.
Other than the above relocation, and cost related to the start-up of MAS's
component overhaul and repair facility at Kinston, there are currently no
commitments for significant capital. 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 quarter ended December 31,
1996.
<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: February 11, 1996 ___________________________
David Clark, Chief Executive Officer
Date: February 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: February 11, 1996 /s/ David Clark
David Clark, Chief Executive Officer
Date: February 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
</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>
