<PAGE>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
_X__ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
ACT OF 1934
For the quarterly period ended November 30, 1995
-------------------------------
or
____ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
ACT OF 1934
For the transition period from _______________ to ________________
Commission File Number 2-74238-B
---------
LOJACK CORPORATION
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Massachusetts 04-2664794
- --------------------------------------------------------------------------------
(State or other jurisdiction of I.R.S. Employer
incorporation or organization) Identification Number
333 Elm Street Dedham, Massachusetts 02026
- --------------------------------------------------------------------------------
(Address of principal executive offices) (ZIP Code)
617 326 4700
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed
since last report)
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 ISSUERS INVOLVED
IN BANKRUPTCY PROCEEDINGS DURING
THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a
plan confirmed by a court. Yes ____ No ____
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's class
of common stock, as of the lastest practicable date.
21,830,016 at January 10, 1996
------------------------------
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
INDEX
<TABLE>
<CAPTION>
Part I. Financial Information Page
----
<S> <C> <C>
Item 1. Financia1 Statements:
Consolidated Balance Sheets:
November 30, 1995 and February 28,
1995.......................................................1
Consolidated Statements of Operations:
Three Months Ended November 30, 1995 and 1994
Nine Months Ended November 30, 1995 and 1994...............2
Consolidated Statements of Cash Flows:
Nine Months Ended November 30, 1995 and 1994...............4
Notes to Consolidated Financial
Statements.................................................6
Item 2.
Management's Discussion and Analysis of Results
of Operations and Financial Condition........................8
Part II. Other Information...........................................12
Item 4. Submission of Matters to a Vote of
Security Holders
Item 6(a) Exhibits and Reports on Form 8-K
Signatures..................................................13
Exhibit 11..................................................14
Exhibit 27..................................................18
</TABLE>
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
November 30, February 28,
1995 1995
---------- --------
(Unaudited)
<S> <C> <C>
CURRENT ASSETS:
Cash and equivalents.......................$30,173,024 $21,665,908
Accounts receivable-net.................... 5,866,837 4,258,555
Inventories................................ 1,928,012 1,845,753
Prepaid expenses and other assets.......... 97,292 63,971
---------- ----------
Total current assets................... 38,065,165 27,834,187
PROPERTY AND EQUIPMENT - NET.................. 8,095,699 8,440,427
OTHER ASSETS-NET.............................. 371,967 420,202
---------- ----------
Total..................................$46,532,831 $36,694,816
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of
capital lease obligations ................$ 530,712 $ 651,854
Accounts payable........................... 3,053,001 2,548,811
Accrued compensation ...................... 535,874 709,069
Current portion of deferred revenue........ 607,596 437,778
Deposits in escrow......................... 1,460,635 718,668
Accrued and other liabilities.............. 1,067,522 800,260
--------- ---------
Total current liabilities............. 7,255,340 5,866,440
--------- ---------
DEFERRED REVENUE.............................. 1,601,686 1,164,411
LONG-TERM DEBT:
Capital lease obligations.................. 942,570 799,246
10% convertible subordinated
debentures................................ 100,000
--------- ---------
Total long-term debt.................. 942,570 899,246
--------- ---------
STOCKHOLDERS' EQUITY:
Common stock - $.01 par value;
authorized, 35,000,000 shares;
issued, 21,769,966 and
21,252,610 shares at November 30,
1995 and February 28, 1995,
respectively............................. 217,700 212,527
Additional paid-in capital................. 54,583,413 53,046,416
Deficit....................................(18,067,878) (24,494,224)
---------- ----------
Total stockholders' equity................. 36,733,235 28,764,719
---------- ----------
Total.................................$46,532,831 $36,694,816
========== ==========
</TABLE>
See notes to consolidated financial statements.
-1-
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three Months Ended
------------------
November 30, November 30,
1995 1994
---------- ---------
(Unaudited) (Unaudited)
<S> <C> <C>
Revenues...................................$13,600,226 $12,009,297
Cost of Goods Sold......................... 6,233,187 5,776,359
--------- ---------
Gross Margin............................... 7,367,039 6,232,938
--------- ---------
Costs and Expenses:
System costs and research and
development............................ 302,453 173,811
Sales & Marketing....................... 2,856,976 2,501,192
General and administrative.............. 1,333,491 1,187,835
Depreciation and amortization........... 437,539 621,343
--------- ---------
Total................................ 4,930,459 4,484,181
--------- ---------
Operating Income .......................... 2,436,580 1,748,757
--------- ---------
Other Income (Expense):
Interest Income.......................... 373,342 214,108
Interest (Expense) ...................... (33,074) (20,773)
Other Income ............................ (26,484) 12,540
------ ------
Total................................. 313,784 205,875
------- -------
Income before Provision for Income
Taxes .................................... 2,750,364 1,954,632
Provision for Income Taxes................. 190,100 144,000
--------- ---------
Net Income ................................ $2,560,264 $1,810,632
========= =========
Earnings per Common Share
and Common Share Equivalent............... $0.11 $0.08
===== =====
Common Shares and Equivalents.............. 23,621,648 22,501,475
========== ==========
</TABLE>
See notes to consolidated financial statements.
-2-
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Nine Months Ended
-----------------
November 30, November 30,
1995 1994
---------- ---------
(Unaudited) (Unaudited)
<S> <C> <C>
Revenues...................................$38,923,799 $31,005,930
Cost of Goods Sold......................... 17,995,078 15,703,640
---------- ----------
Gross Margin............................... 20,928,721 15,302,290
---------- ----------
Costs and Expenses:
System costs and research and
development............................ 876,460 437,267
Sales & Marketing....................... 8,615,921 7,045,358
General and administrative.............. 4,060,118 3,469,175
Depreciation and amortization........... 1,400,790 1,739,011
--------- ---------
Total................................ 14,953,289 12,690,811
---------- ----------
Operating Income .......................... 5,975,432 2,611,479
--------- ---------
Other Income (Expense):
Interest Income ......................... 1,066,950 523,237
Interest (Expense) ...................... (120,313) (280,789)
Other Income............................. 36,378 61,650
------- -------
Total.................................. 983,015 304,098
------- -------
Income before Provision for Income
Taxes ..................................... 6,958,447 2,915,577
Provision for Income Taxes................. 532,100 204,000
--------- -------
Net Income ..... .......................... 6,426,347 2,711,577
Cumulative undeclared preferred
dividends for the period.................. (425,563)
--------- -------
Net Income Applicable to
Common Stockholders....................... $6,426,347 $2,286,014
========= =========
Earnings per Common Share
and Common Share Equivalent:.............. $0.28 $ 0.11
==== ====
Common Shares and Equivalents.............. 23,279,021 20,215,067
========== ==========
</TABLE>
See notes to consolidated financial statements.
-3-
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Nine Months Ended
-----------------
November 30, November 30,
1995 1994
------ ------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ............................... $6,426,347 $2,711,577
--------- ---------
Adjustments to reconcile net income
to net cash provided by
operating activities:
Depreciation and amortization.......... 2,015,000 2,141,460
Increase (decrease) in cash from
changes in assets and liabilities:
Accounts receivable-net............ (1,608,282) (2,192,945)
Inventories........................ (82,259) 22,079
Prepaid expenses and other assets.. (33,321) (7,400)
Other assets....................... 1,067 (46,972)
Accounts payable................... 504,190 40,909
Accrued and other
liabilities. .................... 1,443,126 814,611
--------- -------
Total adjustments................ 2,239,521 771,742
--------- -------
Net cash provided by
operating activities............ $8,665,868 $3,483,319
--------- ---------
</TABLE>
-4-
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Continued)
<TABLE>
<CAPTION>
Nine Months Ended
-----------------
November 30, November 30,
1995 1994
-------- ------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM INVESTING ACTIVITIES:
Expenditures for property and
equipment - net........................$( 964,018) $(1,701,737)
--------- ---------
Net cash used for investing
activities....................... ( 964,018) (1,701,737)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock................ 1,442,170 13,518,566
Repayment of debt....................... (636,904) (548,297)
Preferred dividends paid................ (3,821,626)
Other................................... (10,486)
--------- ---------
Net cash provided by
financing activities............. 805,266 9,138,157
--------- ---------
INCREASE IN CASH AND
EQUIVALENTS............................. 8,507,116 10,919,739
BEGINNING CASH AND EQUIVALENTS........... 21,665,908 8,416,528
---------- ---------
ENDING CASH AND EQUIVALENTS............. $ 30,173,024 $19,336,267
========== ==========
</TABLE>
See notes to consolidated financial statements.
-5-
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The accompanying consolidated financial statements and notes do not include
all of the disclosures made in the Company's Annual Report to Stockholders,
which should be read in conjunction with these statements. Certain fiscal
1995 amounts have been reclassified to conform with the fiscal 1996
presentation. In the opinion of the Company, the statements include all
adjustments necessary for a fair presentation of the quarterly results and
any and all such adjustments were of a normal recurring nature.
2. The results of operations for the three and nine months ended November 30,
1995 and 1994 are not necessarily indicative of the results to be expected
for the full year.
3. Supplemental cash flow information:
Cash paid for interest for the nine months ended November 30, 1995 and 1994
was $121,000 and $612,000, respectively. Cash paid for income taxes for the
nine months ended November 30, 1995 and 1994 were $388,000 and $38,000,
respectively. For the nine months ended November 30, 1995 and 1994 the
Company incurred capital lease obligations totaling $659,000 and $1,281,000
respectively, under lease agreements for new vehicles and equipment.
4. Earnings per share
Earnings per share has been computed by dividing net earnings, after
reduction for preferred stock dividends (when applicable), by the weighted
average number of common shares and equivalents outstanding. Common share
equivalents included in the computation represent shares issuable upon
assumed exercise of stock options and stock purchase warrants (when
applicable), which would have a dilutive effect.
The number of common shares and equivalents for computing primary earnings
per share for the three months ended November 30, 1995 and 1994 were
23,621,648 and 22,501,475, respectively. For the nine months ended November
30, 1995 and 1994, the number of common shares and equivalents used in
computing primary earnings per share were 23,279,021 and 20,215,067,
respectively. Fully diluted and primary earnings per share were the same
for the three and nine months ended November 30, 1995 and 1994.
-6-
<PAGE>
5. Income Taxes
The Company has available a net operating loss carryforward of $19,200,000
at November 30, 1995. FASB 109 provides that a deferred tax asset should be
recognized if it is "more likely then not" that the Company will realize
the tax benefit of such carryforwards. The Company is presently evaluating
its current tax provision in light of this criteria and, if appropriate,
may reduce its provision in future quarters as the result of recording such
a deferred asset.
-7-
<PAGE>
Managements Discussion and Analysis of
Results of Operations and Financial Condition
November 30, 1995
Revenues increased by $1,591,000 and $7,918,000, or 13% and 26%, to $13,600,000
and $38,924,000 for the three and nine months ended November 30, 1995,
respectively, from $12,009,000 and $31,006,000 for the same periods a year
earlier. This increase can be attributed primarily to increased revenues from
the sales of LoJack Units and related products of $1,405,000 and $7,427,000 for
the three and nine months ended November 30, 1995 from the Company's existing
domestic markets as compared with the same periods a year earlier, as well as,
to a lesser extent, revenues related to the expansion markets of Connecticut
(March, 1995) and San Diego and Orange Counties in California (June, 1995) ("the
expansion markets"). Revenues generated from international licensing agreements
increased $186,000 and $491,000 for the three and nine months ended November 30,
1995 as compared to a year earlier. The increases in international revenues were
generated from both product sales and licensing fees.
Cost of goods sold as a percentage of revenues decreased to 46% for the three
and nine months ended November 30, 1995 from 48% and 51% of related revenues for
the same periods a year earlier. Domestically, cost of goods sold decreased to
46% and 47% of related revenues for the three and nine months ended November 30,
1995, respectively from 48% and 51%, respectively, for the same periods a year
earlier. This decrease is primarily the result of a decrease in the
manufacturing cost of a LoJack Unit as well as increased operating efficiencies
realized from economies of scale. Cost of goods sold related to revenues derived
from international licensing agreements decreased to 41% for the three months
ended November 30, 1995 from 46% a year earlier and decreased to 39% for the
nine months ended November 30, 1995 from 49% for the same period a year earlier.
These ratios fluctuate widely from quarter to quarter based upon the mix of
revenues from international product sales and licensing fees.
Systems costs and research and development increased by $129,000 and $439,000 to
$302,000 and $876,000 for the three and nine months ended November 30, 1995,
respectively, from $174,000 and $437,000, respectively for the same periods a
year earlier. These increases are the result of increased research and
development efforts related to improvements to the LoJack Systems (including the
next generation LoJack Unit and Stolen Vehicle Recovery System) as well as
increased systems maintenance and operating costs related to the LoJack System
in markets which were added during the prior fiscal year.
-8-
<PAGE>
Sales and marketing expense increased by $356,000 and $1,571,000 to $2,857,000
and $8,616,000 for the three and nine months ended November 30, 1995 from
$2,501,000 and $7,045,000 for the same periods a year earlier. These increases
are primarily related to advertising and promotional expenses related to the
expansion markets as well as increased support and payroll costs related to
increased sales in existing domestic markets.
General and administrative expenses increased by $146,000 and $591,000 to
$1,333,000 and $4,060,000 for the three and nine months ended November 30,1995,
respectively, from $1,188,000 and $3,469,000 for the same periods a year
earlier. These increases are primarily the result of increased payroll costs and
support service expenses related to the increased level of business during these
fiscal periods as compared with the prior year, as well as expenses relating to
entering into international license agreements.
Depreciation and amortization decreased by $184,000 and $338,000 to $438,000 and
$1,401,000 for the three and nine months ended November 30,1995, respectively,
from $621,000 and $1,739,000 for the same periods a year earlier. These
decreases are the result of a significant amount of property and equipment
becoming fully depreciated during fiscal 1996, being offset partially by an
increase in depreciation expense on property additions related to expansion
markets in fiscal 1995 and 1996.
Interest and other income increased by $120,000 and $518,000 for the three and
nine months ended November 30, 1995, respectively, as compared with the same
periods a year earlier. This primarily is the result of an increase in cash
available for investment as well as an increase in interest rates earned on
investments during the periods.
Interest expense increased by $12,000 for the three months ended November 30,
1995 as compared with a year earlier as a result of interest expense on capital
lease additions during the quarter. Interest expense for the nine months ended
November 30, 1995, decreased by $160,000 as compared with a year earlier
primarily as the result of the absence in the nine month period ending November
30, 1995 of interest expense related to a third party guarantee under a former
line of credit.
Provision for income taxes increased by $46,000 and $328,000 for the three and
nine months ended November 30, 1995 as compared with the same periods a year
earlier as the result of the increase in the Company's taxable income during the
fiscal periods.
As a result of the foregoing, net income increased by $749,000 and $3,715,000 to
$2,560,000 and $6,426,000 for the three and nine months ended November 30, 1995,
respectively, from $1,811,000 and $2,711,000 for the same periods a year
earlier.
-9-
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
As of November 30, 1995, the Company had working capital of $30,810,000 and an
unused line of credit of $4,500,000. The Company is currently finalizing a
renewal of the line of credit and an increase in available borrowings to
$7,500,000.
The Company is currently in negotiations with respect to expansion of the LoJack
System to several other jurisdictions. The Company expects that it will complete
negotiations and expand into certain new markets during fiscal 1997. Capital
expenditures, including those related to market expansions, budgeted for the
remainder of the fiscal year and for fiscal 1997 are estimated to be
approximately $500,000, and $3,000,000 respectively.
For the nine months ended November 30, 1995 the Company realized cash provided
by operations of $8,666,000, compared to $3,483,000 for the same period last
year. This increase is the result of both increased revenues and improved gross
margins on revenues primarily derived from the Company's domestic markets. The
Company believes that its operations, both domestic as well as international
licensing activities, will continue to provide strong cash flow in the future.
The Company continues to investigate possible investment opportunities utilizing
current resources including, but not limited to, possible acquisitions, of or
investments, in other companies in the security industry. To date, the Company
has taken no formal action in this regard. In addition, in December of 1995 the
Company's board of directors authorized a stock repurchase program under which
the Company may repurchase up to 2,200,000 (or approximately 10%) of its
currently outstanding shares of common stock. The Company plans to accomplish
the repurchase program in open market transactions, from time to time, depending
on the price of its stock. The Company plans to use its current working capital
and cash flow from operations to fund this repurchase program. As of January 8,
1996, no shares had been repurchased under this program.
The increase in the Company's accounts receivable of $1,608,282 to $5,866,837 at
November 30, 1995 from $4,258,555 at February 28, 1995 is consistent with the
increase in revenues. The increase in accounts payable of $504,190 to $3,053,001
at November 30, 1995 from $2,548,811 at February 28, 1995 is related to the
overall increase in business volume and increased media spending during the
third quarter of fiscal 1996 as compared with the fourth quarter of fiscal 1995.
-10-
<PAGE>
The Company has available a net operating loss carryforward of $19,200,000 at
November 30, 1995. FASB 109 provides that a deferred tax asset should be
recognized if it is "more likely then not" that the Company will realize the tax
benefit of such carryforwards. The Company is presently evaluating its current
tax provision in light of this criteria and, if appropriate, may reduce its
provision in future quarters as the result of recording such a deferred asset.
The Company believes that its current working capital, cash flow from
operations, and its available line of credit will provide sufficient funding for
its stock repurchase program, capital expenditures and possible investment
opportunities.
-11-
<PAGE>
PART II - OTHER INFORMATION
Item 1. Not Applicable.
Item 2. Not Applicable.
Item 3. Not Applicable
Item 4. Not Applicable
Item 5. Not Applicable
Item 6. Exhibits and Reports on Form 8-K.
a. 11. Statement Regarding Computation of Per Share Earnings.
27. Financial Data Schedule
b. No reports on Form 8-K were filed during the quarter for
which this report is filed.
-12-
<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.
LOJACK CORPORATION
January 8, l996 /s/ C. Michael Daley
- ------------------------- --------------------
Date C. Michael Daley
President and Treasurer
(Chief Executive Officer)
January 8, 1996 /s/ Joseph F. Abely
- ------------------------- -------------------
Date Senior Vice President and
Chief Financial Officer
(Principal Financial and
Accounting Officer)
-13-
<PAGE>
STATEMENT REGARDING COMPUTATION OF
PER SHARE EARNINGS
EXHIBIT 11
<TABLE>
<CAPTION>
Three Months Ended
------------------
November 30, November 30,
1995 1994
---- ----
<S> <C> <C>
Primary:
Earnings:
Net income $2,560,263 $1,810,632
========= =========
Shares:
Weighted average number of common
shares outstanding 21,653,866 21,186,964
Assumed exercise of options
and warrants 1,967,782 1,314,511
--------- ---------
Weighted average number of common
shares for primary calculation 23,621,648 22,501,475
========== ==========
Primary earnings
per share: $0.11 $0.08
==== ====
</TABLE>
-14-
<PAGE>
STATEMENT REGARDING COMPUTATION OF
PER SHARE EARNINGS
EXHIBIT 11
(Continued)
<TABLE>
<CAPTION>
Three Months Ended
------------------
November 30, November 30,
1995 1994
---- ----
<S> <C> <C>
Assuming full dilution:
Earnings:
Net income $2,560,263 $ 1,810,632
========= ==========
Shares:
Weighted average number of common
shares outstanding 21,653,866 21,186,964
Assumed exercise of options and
warrants 1,969,234 1,314,511
---------- ----------
Weighted average number of common
shares assuming full dilution 23,623,100 22,501,475
========== ==========
Fully diluted earnings per share: $0.11 $0.08
==== ====
</TABLE>
-15-
<PAGE>
STATEMENT REGARDING COMPUTATION OF
PER SHARE EARNINGS
EXHIBIT 11
(Continued)
<TABLE>
<CAPTION>
Nine Months Ended
-----------------
November 30, November 30,
1995 1994
---- ----
<S> <C> <C>
Primary:
Earnings:
Net income $6,426,347 $2,711,577
Deduct preferred dividends (425,563)
--------- -------
Income applicable to common
stock $6,426,347 $2,286,014
========= =========
Shares:
Weighted average number of common
shares outstanding 21,456,201 19,306,672
Assumed exercise of options
and warrants 1,822,820 908,395
--------- ----------
Weighted average number of common
shares for primary calculation 23,279,021 20,215,067
========== ==========
Primary earnings per share: $0.28 $0.11
==== ====
</TABLE>
-16-
<PAGE>
STATEMENT REGARDING COMPUTATION OF
PER SHARE EARNINGS
EXHIBIT 11
(Continued)
<TABLE>
<CAPTION>
Nine Months Ended
-----------------
November 30, November 30,
1995 1994
---- ----
<S> <C> <C>
Assuming full dilution:
Earnings:
Net income $6,426,347 $ 2,711,577
Deduct preferred dividends (425,563)
--------- -------
Income applicable to common
stock $6,426,347 $ 2,286,014
========= =========
Shares:
Weighted average number of common
shares outstanding 21,456,201 19,306,672
Assumed exercise of options
and warrants 2,014,120 908,395
---------- ----------
Weighted average number of common
shares assuming full dilution: 23,470,321 20,215,067
========== ==========
Fully diluted earnings per share: $0.28 $0.11
==== ====
</TABLE>
-17-
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 9-MOS
<FISCAL-YEAR-END> FEB-29-1996 FEB-29-1996
<PERIOD-START> SEP-01-1995 MAR-01-1995
<PERIOD-END> NOV-30-1995 NOV-30-1995
<CASH> 30,173,024 30,173,024
<SECURITIES> 0 0
<RECEIVABLES> 6,158,321 6,158,321
<ALLOWANCES> 291,484 291,484
<INVENTORY> 1,928,012 1,928,012
<CURRENT-ASSETS> 38,065,165 38,065,165
<PP&E> 19,907,333 19,907,333
<DEPRECIATION> 11,811,634 11,811,634
<TOTAL-ASSETS> 46,532,831 465,532,831
<CURRENT-LIABILITIES> 7,255,340 7,255,340
<BONDS> 0 0
<COMMON> 217,700 217,700
0 0
0 0
<OTHER-SE> 36,515,535 36,515,535
<TOTAL-LIABILITY-AND-EQUITY> 46,532,831 46,532,831
<SALES> 13,307,226 38,193,466
<TOTAL-REVENUES> 13,600,226 38,923,799
<CGS> 6,233,187 17,995,078
<TOTAL-COSTS> 6,233,187 17,995,078
<OTHER-EXPENSES> 4,930,459 14,953,289
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 33,074 120,313
<INCOME-PRETAX> 2,750,364 6,958,447
<INCOME-TAX> 190,100 532,100
<INCOME-CONTINUING> 2,560,264 6,426,347
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 2,560,264 6,426,347
<EPS-PRIMARY> .11 .28
<EPS-DILUTED> .11 .28
</TABLE>
