<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 May 31, 1998
OR
[_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURTIES 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)
781-326-4700
(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:
There were 18,018,481 shares issued and outstanding of $.01 par value, common
stock, as of July 10, 1998.
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES INDEX
<TABLE>
<CAPTION>
Part I. Financial Information PAGE
----
<S> <C>
Item 1. Financial Statements
Consolidated Balance Sheets:
May 31, 1998 and February 28, 1998........................ 1
Consolidated Statements of Operations:
Three Months Ended May 31, 1998 and 1997................... 2
Consolidated Statements of Cash Flows:
Three Months Ended May 31, 1998 and 1997................... 3
Notes to Consolidated Financial Statements....................... 4
Item 2. Management's Discussion and Analysis of Results
of Operations and Financial Condition....................... 5
Part II. Other Information............................................
Item 6. Exhibits and Reports on Form 8-K 9
Signatures....................................................... 10
Exhibit 11....................................................... 11
Exhibit 27....................................................... 12
</TABLE>
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
MAY 31, FEBRUARY 28,
1998 1998
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and equivalents................................... $ 5,427,590 $ 5,498,348
Short-term investments................................. 1,400,000 1,400,000
Accounts receivable - net.............................. 9,830,521 8,073,981
Inventories............................................ 5,055,790 4,883,038
Vendor deposit......................................... 1,432,000 1,432,000
Prepaid expenses and other............................. 170,233 132,154
Deferred income taxes.................................. 1,227,743 1,195,881
------------ ------------
Total current assets............................... 24,543,877 22,615,402
MARKETABLE SECURITIES.................................. 2,056,744
PROPERTY AND EQUIPMENT - Net........................... 10,292,992 9,763,720
OTHER ASSETS - Net..................................... 271,254 281,786
------------ ------------
TOTAL.................................................. $ 37,164,867 $ 32,660,908
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of capital lease
obligations......................................... 1,003,843 746,304
Accounts payable....................................... 3,259,879 2,578,348
Accrued and other liabilities.......................... 968,706 1,016,345
Deposits............................................... 558,543 379,421
Current portion of deferred revenue................... 1,244,052 1,213,693
Accrued compensation................................... 716,736 1,057,895
Accrued taxes.......................................... 304,154 136,993
------------ ------------
Total current liabilities......................... 8,055,913 7,128,999
DEFERRED REVENUE....................................... 3,002,121 2,676,351
DEFERRED INCOME TAXES.................................. 1,019,929 560,148
CAPITAL LEASE OBLIGATIONS.............................. 1,281,464 792,926
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock - $.01 par value; authorized,
35,000,000 shares; issued, 22,265,981 and
22,250,381 at May 31, 1998 and
February 28, 1998, respectively...................... 222,660 222,504
Additional paid-in-capital............................. 59,577,121 59,493,808
Accumulated other comprehensive income................. 880,287
Retained earnings...................................... 8,970,198 5,550,998
Treasury stock, at cost, 4,136,500
and 3,971,500 shares of common stock at
May 31, 1998 and February 28, 1998,
respectively.......................................... (45,844,826) (43,764,826)
------------- ------------
Total stockholders' equity ....................... 23,805,440 21,502,484
------------- ------------
TOTAL.................................................. $ 37,164,867 $ 32,660,908
============ ============
</TABLE>
See notes to consolidated financial statements.
(1)
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
THREE MONTHS ENDED
(Unaudited)
MAY 31, MAY 31,
1998 1997
<S> <C> <C>
Revenues.................................................. $20,264,538 $18,558,153
Cost of goods sold........................................ 8,881,876 8,560,794
----------- -----------
Gross margin.............................................. 11,382,662 9,997,359
----------- -----------
Costs and expenses:
Systems costs and research and
development............................................ 346,836 342,314
Marketing................................................. 4,182,349 3,934,724
General and administrative................................ 2,088,345 1,780,446
Depreciation and amortization............................. 350,618 395,928
----------- -----------
Total.................................................. 6,968,148 6,453,412
----------- -----------
Operating income ......................................... 4,414,514 3,543,947
----------- -----------
Other income (expense):
Interest income........................................... 93,197 184,438
Interest expense.......................................... (48,467) (40,628)
Gain on sale of fixed assets.............................. 47,359 19,497
Gain on sale of marketable securities 1,099,597
----------- -----------
Total.................................................. 1,191,686 163,307
----------- -----------
Income before provision
for income taxes 5,606,200 3,707,254
Provision for income taxes................................ 2,187,000 1,446,000
----------- -----------
Net income ............................................... $ 3,419,200 $ 2,261,254
=========== ===========
Earnings per share:
Basic $ 0.19 $0.12
=========== ===========
Diluted $ 0.17 $0.11
=========== ===========
Weighted average shares:
Basic 18,171,258 19,086,406
=========== ===========
Diluted 19,674,361 20,449,384
=========== ===========
</TABLE>
See notes to consolidated financial statements.
(2)
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MAY 31, MAY 31,
1998 1997
------------ ------------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income..................................................... $ 3,419,200 $ 2,261,254
----------- -----------
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation and
amortization............................................... 687,841 646,869
Provision for doubtful accounts............................. 55,265 31,384
Deferred taxes.............................................. (135,081) (43,162)
Gain on Sale of marketable security......................... (1,099,597)
Increase (decrease) in
cash from changes in
assets and liabilities:
Accounts receivable -net.................................... (1,811,805) 239,036
Inventories................................................. (172,752) 512,205
Prepaid expenses and other.................................. (38,079) 792
Other assets................................................ - 7,976
Accounts payable............................................ 681,531 (278,995)
Accrued and other
liablities................................................. 313,614 522,766
----------- -----------
Total adjustments.............................................. (1,519,063) 1,638,871
----------- -----------
Net cash provided by operating
activities.................................................. 1,900,137 3,900,125
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Expenditures for property
and equipment -net.......................................... (57,581) (941,385)
Purchase of marketable securities.............................. (1,259,170)
Proceeds from sale of marketable securities.................... 1,745,310
----------- -----------
Net cash provided by (used for) investing activities........... 428,559 (941,385)
----------- -----------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Issuance of common stock....................................... 83,469 75,361
Repayment of debt.............................................. (402,923) (269,086)
Repurchase of common stock..................................... (2,080,000) (4,997,808)
----------- -----------
Net cash used for
financing activities........................................ (2,399,454) (5,191,533)
----------- -----------
DECREASE IN CASH
AND EQUIVALENTS............................................. (70,758) (2,232,793)
BEGINNING CASH AND EQUIVALENTS................................. 5,498,348 14,671,700
----------- -----------
ENDING CASH AND EQUIVALENTS.................................... $ 5,427,590 $12,438,907
=========== ===========
</TABLE>
See notes to consolidated financial statements.
(3)
<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
1998 amounts have been reclassified to conform with the fiscal 1999
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 months ended May 31, 1998 and 1997
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 three
months ended May 31, 1998 and 1997 was $48,000 and $41,000, respectively.
Cash paid for income taxes for the three months ended May 31, 1998 and 1997
was $2,137,500 and $480,500, respectively. For the three months ended May
31, 1998 and 1997 the Company incurred capital lease obligations of
$1,149,000 and $294,000, respectively.
4. Earnings per share:
In fiscal 1998 the Company adopted the provisions of Statement of Financial
Accounting Standards ("SFAS") No. 128, "Earnings per Share." All prior
periods have been restated to conform to the provisions of SFAS No. 128.
Basic earnings per share is computed using the weighted average number of
common shares outstanding during the period. Diluted earnings per share
reflects the effect of the Company's outstanding options (using the treasury
stock method), except where such options would be antidilutive.
5. Marketable Securities:
In March 1998 the Company exercised an option to purchase 292,507 common
shares of its United Kingdom licensee, Tracker Network, UK Ltd. for an
aggregate exercise price of $1,259,000. In April 1998 the Company sold
150,000 of these shares and recognized a pre-tax gain of approximately
$1,100,000. The remaining 142,507 shares of the investment are classified as
an available-for-sale security in accordance with SFAS No. 115 in the
Company's Consolidated Balance Sheet with a fair value of approximately
$2,057,000 as of May 31, 1998. The unrealized gain of $880,000 (net of taxes
of $563,000) is reported in other comprehensive income for the three months
ended May 31, 1998.
6. Comprehensive Income:
Effective March 1, 1998, the Company adopted the provisions of SFAS No. 130,
"Reporting Comprehensive Income." Currently, in addition to net income , the
only item which would be included in comprehensive income is unrealized
gains or losses on available-for-sale securities. For the three months ended
May 31, 1998 and 1997, comprehensive income totaled approximately $4,299,000
and $2,261,000, respectively.
(4)
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
RESULTS OF OPERATIONS
THREE MONTHS ENDED MAY 31, 1998 ("FISCAL 1999")
VERSUS THREE MONTHS ENDED MAY 31, 1997 ("FISCAL 1998")
Revenues for the three months ended May 31, 1998 increased by $1,707,000, or 9%,
to $20,265,000 from $18,558,000 for the same period a year earlier. Domestic
revenues increased during the same period by $3,302,000, or 23% to $17,592,000
from $14,290,000 a year earlier. Revenues from product sales and licensing fees
related to international licensing agreements decreased by $1,595,000, or 37%,
to $2,673,000 for the three months ended May 31, 1998 from $4,268,000 for the
same period a year earlier. The increase in domestic revenues was primarily due
to an increase of 28% in the number of LoJack Units sold in existing domestic
markets offset partially by decreased penetrations of optional alarm products as
more vehicles come with factory equipped alarms. The decrease in international
revenues was partially related to a $450,000 decrease in revenues from the sale
of system components and licensee fees which are primarily to new licensees and
are generally non-recurring in nature. The additional decrease of $1,145,000 was
related to lower sales of LoJack Units and related products to existing
licensees, of which approximately $1,000,000 relates to decreased sales to the
Company's licensee in Argentina which has been experiencing financial
difficulties.
Cost of goods sold decreased to 44% of revenues for the three months ended May
31, 1998 from 46% for the same period a year earlier. Domestically cost of sales
decreased to 43% of related revenues from 45% for the same periods primarily as
a result of increased installation efficiencies, lower manufactured cost of the
LoJack Unit, and decreasing penetrations of lower margined optional alarm
products. International costs of sales increased to 50% of related revenues for
the three months ended May 31, 1998 from 49% a year earlier principally the
result of the decrease in non-recurring component sales and license fees.
Systems costs and research and development increased by $5,000 to $347,000 for
the three months ended May 31, 1998 from $342,000 for the same period a year
earlier. An increase in systems costs of $23,000 related to certain markets
which became operational during the first quarter of fiscal 1998 was offset
partially by a decrease of $18,000 in research and development expense due to
the timing of certain work related to a redesign of the LoJack Unit.
Marketing expense increased by $247,000 to $4,182,000 for the three months ended
May 31, 1998 from $3,935,000 for the same period a year earlier. This increase
was primarily related to an increase in marketing salaries and benefits related
to increased domestic sales and expansion to new markets, offset partially by a
decrease in media expense related to the timing of advertising in certain
markets.
General and administrative expense increased by $308,000 to $2,088,000 for the
three months ended May 31, 1998 from $1,780,000 for the same period a year
earlier primarily as the result of increased payroll costs and administrative
expenses related to the increased domestic and international business volume and
market expansions, as well as increases in certain professional and recruiting
fees related to ongoing business.
Depreciation and amortization decreased by $45,000 to $351,000 for the three
months ended May 31, 1998 from $396,000 for the same period a year earlier. This
decrease was the result of LoJack System components in certain older markets
becoming fully depreciated, offset partially by an increase in depreciation
expense from LoJack System components in certain markets which began operations
during the first three months of fiscal 1998, and depreciation expense on
certain computer equipment and software additions.
(5)
<PAGE>
Interest income decreased by $91,000 to $93,000 for the three months ended
May 31, 1998 from $184,000 for the same period a year earlier primarily as the
result of a decrease in the average cash balances available for investment
during the period.
Interest expense increased by $8,000 to $48,000 for the three months ended May
31, 1998 from $40,000 for the same period a year earlier as a result of interest
on additional capital leases of installation vehicles.
Gain on sale of fixed assets increased by $28,000 to $47,000 for the three
months ended May 31, 1998 from $19,000 for the same period a year earlier due to
an increase in the number of fully depreciated installation vehicles sold during
the period in the normal course of business.
Gain on sale of marketable securities was $1,100,000 for the three months ended
May 31, 1998 as the result of the sale of common stock of the Company's United
Kingdom licensee which had been acquired through the exercise of an option in
the related license agreement.
The provision for income taxes increased by $1,899,000 to $5,606,000 for the
three months ended May 31, 1998 from $3,707,000 for the same period a year
earlier as the result of the increase in the Company's taxable income during the
respective periods. The Company's effective tax rate remained at 39% during both
periods.
As a result of the foregoing, net income increased by $1,158,000 to $3,419,000
for the three months ended May 31, 1998 from $2,261,000 for the same period a
year earlier.
LIQUIDITY AND CAPITAL RESOURCES
In the first three months of fiscal 1999 cash and equivalents decreased by
$71,000. Cash flow from operations was $1,900,000, cash flow from investing
activities was $ 428,000 and cash flow used for financing purposes was
$2,399,000. Cash flow from operations included net income of $3,419,000, non-
cash additions to net income of $608,000, less $1,100,000 related to the sale
of a marketable security and decreases from changes in assets and liabilities of
$1,027,000. The decrease in cash flow from changes in assets and liabilities
includes an increase in accounts receivable of $1,812,000 and inventories of
$173,000 both of which were primarily related to the increase in domestic
revenues during the first quarter of fiscal 1999 as compared with the fourth
quarter of fiscal 1998. Prepaid expenses increased by $38,000 primarily due to
prepayments on certain tower leases. These decreases in cash flow were offset
partially by increases in accrued and other liabilities of $314,000 as the
result of an increase in deferred revenue related to sales of lifetime
warranties, an increase in deposits from international licensees for the
purchase of product and equipment, and decreases in accrued compensation related
to the payment of annual management bonuses and decreases in other accrued
liabilities. The increase in accounts payable of $682,000 is primarily related
to the timing of payment on certain media expenses.
Cash flows from investing activities included expenditures for property and
equipment (exclusive of additions under capital leases of $1,149,000) for the
three months ended May 31, 1998 of $58,000. Additionally, the Company purchased
292,507 common shares of its United Kingdom licensee for $1,259,000 under terms
of an option agreement in the related license agreement. A subsequent sale of a
150,000 of these shares netted proceeds to the Company of $1,745,000.
Cash flows used for financing activities included the repurchase of 165,000
shares of the Company's common stock during the three months ended May 31, 1998
for $2,080,000. Total cumulative common shares repurchased under the Company's
stock repurchase program were 4,136,500 as of May 31, 1998. The Company intends
to continue to repurchase shares of its common stock in open market
transactions,
(6)
<PAGE>
from time to time, depending upon the price of the stock. As of May 31, 1998
there are 1,063,500 additional common shares authorized for repurchase under the
Company's existing repurchase program.
As of May 31, 1998 the Company had working capital of $16,488,000. The Company
believes that it can meet its anticipated capital and operating requirements
for the remainder of fiscal 1999 using existing working capital, cash flow from
operations, and if necessary, the Company's $7,500,000 line of credit, which
was unused as of May 31, 1998.
The Company presently is pursuing expansion efforts in several additional
domestic jurisdictions. The Company expects that, pending receipt of necessary
governmental approvals, certain potential expansion markets may become
operational during fiscal 1999. The Company plans to fund these expansions as
well as other capital expenditures during fiscal 1999 using existing working
capital, cash flow from operations, and/or the line of credit. The Company
expects that it will spend approximately $2,500,000 on capital expenditures
(excluding assets purchased under capital lease agreements) during the remainder
of fiscal 1999.
The Company's expansion to additional international markets is achieved through
licensing agreements and has not in the past required capital investment on the
part of the Company. The Company currently has no plans to change this practice.
The Company is also continuing to explore possible investment opportunities,
including , but not limited to, possible acquisitions of, or investments in,
other companies.
NEW ACCOUNTING PRONOUNCEMENTS
Effective January 1, 1998, the Company adopted the provisions of SFAS No. 130,
"Reporting Comprehensive Income" and SFAS No. 131, "Disclosures about Segments
of an Enterprise and Related Information." The adoption of SFAS No. 130 had no
effect on the financial position or results of operations of the Company, but
resulted in the disclosure of comprehensive income of approximately $4,299,000
which was derived from net income and unrealized gains on available-for-sale
marketable securities. With the adoption of SFAS No. 131 and as permitted by the
pronouncement, the Company will provide information about its operating
segments, as determined, in the annual financial statements, and will begin
providing such information on an interim basis for the first quarter of 2000.
YEAR 2000
The company has conducted a review of its computer systems to identify those
areas that could be affected by the "Year 2000" issue and is developing an
implementation plan to resolve the issue. The Company is currently implementing
new accounting and custom software as well as new computer network systems which
have been designed by the vendors to properly process transactions which could
be impacted by the "Year 2000" problem. The Company believes that with certain
modifications to LoJack System components, the "Year 2000" problem will not pose
significant operational problems and costs to complete this process are not
anticipated to be material to its financial position or results of operation in
any given year.
(7)
<PAGE>
CAUTIONARY STATEMENTS
The Private Securities Litigation Reform Act of 1995 contains certain safe
harbors regarding forward-looking statements. From time to time, information
provided by the Company or statements made by its employees may contain
"forward-looking" information which involve risk and uncertainties. Any
statements in this report that are not statements of historical fact are
forward-looking statements (including, but not limited to, statements concerning
characteristics and growth of the Company's objectives and plans for future
operations and the Company's expected liquidity and capital resources). Such
forward-looking statements are based on a number of assumptions and involve a
number of risks and uncertainties, and accordingly, actual results could differ
materially. Factors that may cause such differences include, but are not limited
to: the continued and future acceptance of the Company's products and services,
the rate of growth in the industries of the Company's customers; the presence of
competitors with greater technical, marketing and financial resources; the
Company's ability to promptly and effectively respond to technological change to
meet evolving customer needs; capacity and supply constraints or difficulties;
and the Company's ability to successfully integrate new operations. For a
further discussion of these and other significant factors to consider in
connection with forward-looking statements concerning the Company, reference is
made to Exhibit 99 of the Company's Annual Report on Form 10-K for the fiscal
year ended February 29, 1996.
(8)
<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 6a. Exhibit 11. Statement Regarding Computation of Per Share Earnings
Exhibit 27. Financial Data Schedule
b. No reports on Form 8-K were filed during the quarter for which
this report is filed.
(9)
<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
------------------
Registrant
July 14, 1998 /s/ C. Michael Daley
- ------------- -----------------------------------
Date C. Michael Daley
Chief Executive Officer
July 14, 1998 /s/ Joseph F. Abely
- ------------- -----------------------------------
Date Joseph. F. Abely
President and Chief
Operating Officer
(Principal Financial Officer)
(10)
<PAGE>
STATEMENT REGARDING COMPUTATION OF
PER SHARE EARNINGS
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MAY 31, MAY 31,
1998 1997
---------------- -------------------
<S> <C> <C>
BASIC EARNINGS PER SHARE:
Weighted average number of common
shares outstanding 18,171,258 19,086,406
================ ===================
Net Income $ 3,419,200 $ 2,261,254
================ ===================
Basic earning per share: $ 0.19 $ 0.12
================ ===================
DILUTED EARNINGS PER SHARE:
Weighted average number of common
shares outstanding 18,171,258 19,086,406
Common equivalent shares from
stock options 1,503,103 1,362,978
---------------- -------------------
Total 19,674,361 20,449,384
================ ===================
Net Income $ 3,419,200 $ 2,261,254
================ ===================
Diluted earnings per share $ 0.17 $ 0.11
================ ===================
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM LOJACK CORPORATION FORM 10-Q DATED MAY 31, 1998
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 3-MOS
<FISCAL-YEAR-END> FEB-28-1999 FEB-28-1998
<PERIOD-START> MAR-01-1998 MAR-01-1997
<PERIOD-END> MAY-31-1998 MAY-31-1997
<CASH> 5,427,590 0
<SECURITIES> 1,400,000 0
<RECEIVABLES> 10,529,813 0
<ALLOWANCES> 699,292 0
<INVENTORY> 5,055,790 0
<CURRENT-ASSETS> 24,543,877 0
<PP&E> 27,394,200 0
<DEPRECIATION> 17,101,208 0
<TOTAL-ASSETS> 37,164,867 0
<CURRENT-LIABILITIES> 8,055,913 0
<BONDS> 0 0
0 0
0 0
<COMMON> 222,660 0
<OTHER-SE> 23,582,780 0
<TOTAL-LIABILITY-AND-EQUITY> 37,164,867 0
<SALES> 19,938,234 17,851,010
<TOTAL-REVENUES> 20,264,538 18,558,153
<CGS> 8,881,876 8,560,794
<TOTAL-COSTS> 8,881,876 8,560,794
<OTHER-EXPENSES> 6,968,148 6,453,412
<LOSS-PROVISION> 55,265 31,384
<INTEREST-EXPENSE> 48,467 40,628
<INCOME-PRETAX> 5,606,200 3,707,254
<INCOME-TAX> 2,187,000 1,446,000
<INCOME-CONTINUING> 3,419,200 2,261,254
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 3,419,200 2,261,254
<EPS-PRIMARY> 0.19 0.12
<EPS-DILUTED> 0.17 0.11
</TABLE>
