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
Exchange Act of 1934
For the quarterly period ended June 30, 1998
OR
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from / / to / /
Commission file number - 1-7525
THE GOLDFIELD CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 88-0031580
(State or other jurisdiction of (IRS employer identification no.)
incorporation or organization)
100 Rialto Place, Suite 500, Melbourne, Florida 32901
(Address of principal executive offices) (Zip code)
(407) 724-1700
(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
There were 26,854,748 shares of common stock, par value $.10 per share, of
The Goldfield Corporation outstanding as of June 30, 1998.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
THE GOLDFIELD CORPORATION
and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Unaudited)
<TABLE>
June 30, December 31,
1998 1997
<S> <C> <C>
ASSETS
Current assets
Cash and cash equivalents $ 3,474,399 $ 4,397,281
Accounts receivable and accrued billings 1,807,826 1,829,644
Current portion of notes receivable 136,638 78,946
Inventories (Note 2) 288,491 218,502
Costs and estimated earnings in excess of
billings on uncompleted contracts 559,458 791,360
Prepaid expenses and other current assets 238,206 74,368
Total current assets 6,505,018 7,390,101
Property, buildings and equipment, net 4,815,041 4,510,158
Notes receivable, less current portion 683,536 672,576
Deferred charges and other assets
Deferred income taxes (Note 3) 548,000 548,000
Land held for sale 74,926 --
Repurchased royalty at cost, net of accumulated
amortization of $319,450 in 1998 and
$210,793 in 1997 (Note 4) -- 108,657
Cash surrender value of life insurance 741,750 737,050
Total deferred charges and other assets 1,364,676 1,393,707
Total assets $13,368,271 $13,966,542
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities $ 717,964 $ 917,279
Billings in excess of costs and estimated
earnings on uncompleted contracts 23,728 73,048
Current portion of deferred gain on
installment sales 17,178 --
Income taxes payable (Note 3) -- 28,731
Total current liabilities 758,870 1,019,058
Deferred gain on installment sales, less
current portion 168,847 113,865
Total liabilities 927,717 1,132,923
Stockholders' equity
Preferred stock, $1 par value per share,
5,000,000 shares authorized; issued and
outstanding 339,407 shares of Series A
7% voting cumulative convertible stock 339,407 339,407
Common stock, $.10 par value per share,
40,000,000 shares authorized; issued
26,872,106 shares 2,687,211 2,687,211
Capital surplus 18,369,860 18,369,860
Accumulated deficit (8,937,204) (8,544,139)
Total 12,459,274 12,852,339
Less common stock in treasury, 17,358
shares, at cost 18,720 18,720
Total stockholders' equity 12,440,554 12,833,619
Total liabilities and stockholders' equity $13,368,271 $13,966,542
See accompanying notes to consolidated financial statements
</TABLE>
THE GOLDFIELD CORPORATION
and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
Three Months Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
<S> <C> <C> <C> <C>
Revenue
Electrical
construction $ 3,144,228 $ 3,559,162 $7,012,443 $6,292,688
Mining 573,932 514,367 920,593 1,029,937
Other income, net 120,138 84,589 201,092 180,564
Total revenue 3,838,298 4,158,118 8,134,128 7,503,189
Costs and expenses
Electrical
construction 2,758,630 2,613,665 6,232,159 4,908,943
Mining 554,674 425,091 896,169 835,726
Depreciation and
amortization 268,374 246,507 527,855 481,530
Impairment loss
(Note 4) 95,618 -- 95,618 --
General and
administrative 396,554 319,340 763,513 621,471
Total costs and
expenses 4,073,850 3,604,603 8,515,314 6,847,670
Income (loss) from
operations before
income taxes (235,552) 553,515 (381,186) 655,519
Income taxes (Note 3) -- 239,000 -- 263,000
Net income (loss) (235,552) 314,515 (381,186) 392,519
Preferred stock
dividends 5,940 5,940 11,879 11,879
Income (loss)
available to common
stockholders $ (241,492) $ 308,575 $ (393,065) $ 380,640
Basic earnings (loss)
per share of
common stock
(Note 5) $ (0.01) $ 0.01 $ (0.01) $ 0.01
Weighted average
number of common
shares outstanding 26,854,748 26,854,748 26,854,748 26,854,748
See accompanying notes to consolidated financial statements
</TABLE>
THE GOLDFIELD CORPORATION
and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
Three Months Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
<S> <C> <C> <C> <C>
Cash flows from operating
activities
Net income (loss) $ (235,552) $ 314,515 $ (381,186) $ 392,519
Adjustments to reconcile net
income (loss) to net
cash provided from (used
by) operating activities
Depreciation and
amortization 268,374 246,507 527,855 481,530
Impairment loss 95,618 -- 95,618 --
Deferred income taxes -- 208,000 -- 232,000
Gain on sale of property
and equipment (6,192) (9,607) (9,403) (38,244)
Cash provided by (used for)
changes in
Accounts receivable and
accrued billings (200,735) (444,846) 21,818 (1,017,598)
Inventories 16,334 (16,286) (69,989) 6,088
Costs and estimated
earnings in excess
of billings on
uncompleted contracts 275,837 510,406 231,902 230,159
Prepaid expenses and
other current assets 5,139 (68,842) (163,838) (215,719)
Land held for sale 179,823 -- (74,926) --
Cash surrender value of
life insurance -- -- (4,700) (4,700)
Accounts payable and
accrued liabilities (100,295) (86,065) (199,315) 54,176
Billings in excess of
costs and estimated
earnings on uncompleted
contracts (2,364) (46,652) (49,320) (60,922)
Deferred gain on
installment sales 70,986 (56) 72,160 (114)
Income taxes payable -- 31,000 (28,731) 31,000
Net cash provided
from (used by)
operating
activities 366,973 638,074 (32,055) 90,175
Cash flows from investing
activities
Proceeds from the disposal
of property and equipment 12,774 10,500 86,847 76,637
Loans granted (188,488) (23,568) (241,327) (33,566)
Collections from notes
receivable 8,413 12,316 172,675 16,731
Purchases of property
and equipment (436,329) (347,936) (897,143) (485,746)
Net cash used by
investing
activities (603,630) (348,688) (878,948) (425,944)
Cash flows from financing
activities
Payments of preferred
stock dividends (5,940) (5,940) (11,879) (11,879)
Net increase (decrease)
in cash and cash
equivalents (242,597) 283,446 (922,882) (347,648)
Cash and cash equivalents
at beginning of period 3,716,996 3,979,104 4,397,281 4,610,198
Cash and cash equivalents
at end of period $3,474,399 $4,262,550 $3,474,399 $4,262,550
Income taxes paid $ -- $ -- $ 28,731 $ --
See accompanying notes to consolidated financial statements
</TABLE>
THE GOLDFIELD CORPORATION
and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 1998
Note 1 - Basis of Presentation
In the opinion of management, the accompanying unaudited interim
consolidated financial statements include all adjustments necessary
to present fairly the financial position of the Company, the results
of its operations and changes in cash flows for the interim periods
reported. These adjustments are of a normal recurring nature. All
financial statements presented herein are unaudited. However, the
balance sheet as of December 31, 1997, was derived from the audited
consolidated balance sheet. These statements should be read in
conjunction with the financial statements included in the Company's
annual report on Form 10-K for the year ended December 31, 1997. The
results of operations for the interim periods shown in this report
are not necessarily indicative of results to be expected for the
fiscal year.
Note 2 Inventories
Inventories consisted of:
<TABLE>
June 30, December 31,
1998 1997
<S> <C> <C>
Materials and supplies $142,070 $110,399
Industrial mineral products 57,582 45,169
Ores in process 88,839 62,934
Total inventories $288,491 $218,502
</TABLE>
Note 3 - Income Taxes
The income tax provision consisted of:
<TABLE>
Three Months Three Months
Ended June 30, Ended June 30,
1998 1997
<S> <C> <C>
Current
Federal $ -- $ 5,000
State -- 26,000
-- 31,000
Deferred
Federal -- 175,000
State -- 33,000
-- 208,000
Total $ -- $239,000
</TABLE>
<TABLE>
Six Months Six Months
Ended June 30, Ended June 30,
1998 1997
<S> <C> <C>
Current
Federal $ -- $ 5,000
State -- 26,000
-- 31,000
Deferred
Federal -- 195,000
State -- 37,000
-- 232,000
Total $ -- $263,000
</TABLE>
Temporary differences and carryforwards which give rise to deferred
tax assets and liabilities consisted of:
<TABLE>
June 30, December 31,
1998 1997
<S> <C> <C>
Deferred tax assets
Depletion, mineral rights and deferred
development and exploration costs $360,000 $ 324,000
Accrued workers' compensation costs 20,000 28,000
Accrued vacation and bonus 58,000 14,000
Property and equipment, principally
due to differences in depreciation
and valuation write-downs 344,000 358,000
Contingent salary payments recorded
as goodwill for tax purposes 10,000 7,000
Net operating loss carryforwards 2,707,000 2,644,000
Investment tax credit carryforwards 9,000 209,000
Alternative minimum tax credit
carryforwards 262,000 262,000
3,770,000 3,846,000
Valuation allowance (3,222,000) (3,298,000)
Total net deferred tax assets 548,000 548,000
Deferred tax liabilities -- --
Net deferred tax assets $ 548,000 $ 548,000
</TABLE>
The Company has recorded a valuation allowance to reflect the
estimated amount of deferred tax assets which may not be realized.
In assessing the realizability of deferred tax assets, management
considers whether it is more likely than not that some portion or
all of the deferred tax assets will not be realized. The ultimate
realization of deferred tax assets is dependent upon the generation
of future taxable income during the periods in which those temporary
differences become deductible. Management considers the projected
future taxable income and tax planning strategies in making this
assessment. The Company decreased the valuation allowance for net
deferred tax assets by $76,000 for the six months ended June 30,
1998 and increased the valuation allowance $81,000 for the three
months ended June 30, 1998.
At June 30, 1998, the Company had tax net operating loss
carryforwards of approximately $2,700,000 available to offset future
regular taxable income, which if unused, will expire from 2000
through 2013.
Additionally, the Company at June 30, 1998 had investment tax credit
carryforwards of approximately $9,000 available to reduce future
Federal income taxes, which if unused, will expire in 2000. In
addition, the Company has alternative minimum tax credit
carryforwards of approximately $262,000, which are available to
reduce future Federal income taxes over an indefinite period.
Note 4 Impairment Loss
Statement of Financial Accounting Standards No. 121, "Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to be
Disposed Of" requires entities to review long-lived assets and
certain identifiable intangibles, to be held and used, for
impairment whenever events or changes in circumstances indicate that
the carrying amount of the asset may not be recoverable.
In connection with a coal mining property in Harlan, Kentucky,
formerly owned by the Company, the Company retains a coal royalty
which provides for a royalty between 1 1/2% to 3%, originally to be
paid until 2002. Effective February 14, 1997, the agreement was
amended to provide for a payment of $20,000 and monthly minimum
payments of $5,000 until all minimum royalties are collected. The
expiration date of the royalty agreement was extended beyond 2002 to
the extent necessary to permit payments of the $150,000 per year
minimum royalties. Since February 1996, Great Western Coal, Inc.
("Great Western") has generally failed to make the required royalty
payments. On July 1, 1998, the Company filed suit against
Great Western for breach of contract. Under the circumstances,
management has determined the royalty interest to be an impaired
asset. The fair value of the Harlan coal royalty has been determined
by management to be zero as there is no open market for the sale of
this royalty and future discounted cash flows have been estimated by
management to be zero. The impairment loss of $95,618 has been
separately identified as a component of continuing operations. The
loss, which was recognized in the second quarter of 1998, has been
included in the Company's operating results from mining.
Note 5 Basic Earnings (Loss) Per Share of Common Stock
Basic earnings (loss) per common share, after deducting dividend
requirements on the Company's Series A Stock of $11,879 in each of
the six month periods ended June 30, 1998 and 1997, were based on
the weighted average number of shares of Common Stock outstanding,
excluding 17,358 shares of Treasury Stock for each of the periods
ended June 30, 1998 and 1997. The inclusion of Common Stock
issuable upon conversion of Series A Stock has not been included in
the per share calculations because such inclusion would not have a
material effect on the earnings (loss) per common share.
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of Operations.
Results of Operations Six Months Ended June 30, 1998 Compared to
Six Months Ended June 30, 1997.
Net Income (Loss)
The Company incurred a net loss of $381,186 for the six months ended
June 30, 1998, compared to net income of $392,519 for the six
months ended June 30, 1997. The net loss for the six months ended
June 30, 1998 included a charge of $95,618 for an impairment loss
related to the Harlan coal royalty as discussed in Note 4. Net
income for the six months ended June 30, 1997 included an income tax
expense of $263,000.
Revenues
Total revenues for the six months ended June 30, 1998 were
$8,134,128, compared to $7,503,189 in the like 1997 period, an
increase of 8%.
Electrical construction revenue increased by 11% in the six months
ended June 30, 1998 to $7,012,443 from $6,292,688 for the six months
ended June 30, 1997. Electrical construction revenue includes the
results of the subsidiary acquired in January 1996, Fiber Optic
Services, which had revenue of $439,002 for the six months ended
June 30, 1998, compared to $589,674 for the six months ended June
30, 1997.
Revenue from mining operations for the six months ended June 30,
1998 was $920,593, compared to $1,029,937 for the six months ended
June 30, 1997, a decrease of 11%.
Operating Results
Electrical construction operations had an operating profit of
$449,495 during the six months ended June 30, 1998, compared to an
operating profit of $1,091,876 during the six months ended June 30,
1997. The decrease in operating results was primarily due to a
decrease in the level of operations and profit margins of Fiber
Optic Services and to losses from a single, long-term unit price
contract. The varying magnitude and duration of electrical
construction projects may result in substantial fluctuation in the
Company's backlog from time to time. At June 30, 1998, the
approximate value of uncompleted contracts was $800,000, compared to
$5,900,000 at June 30, 1997.
During the six months ended June 30, 1998, the operating loss from
mining operations was $233,260, compared to an operating profit of
$32,550 during the six months ended June 30, 1997. The decrease in
operating results from mining operations in 1998 was due to lower
gross margins on off-site construction contracts utilizing existing
mining personnel and equipment and the charge of $95,618 for an
impairment loss relating to the Harlan coal royalty. Operating
profit (loss) includes royalty income and depreciation expense.
St. Cloud Mining Company, a wholly-owned subsidiary of the Company
("St. Cloud"), sold 6,820 tons of natural zeolite during the six
months ended June 30, 1998, compared to 7,941 tons during the six
months ended June 30, 1997.
Surface and underground mining of base and precious metals have been
halted at St. Cloud since the third quarter of 1991 and the first
quarter of 1992, respectively, due to declining prices and mine
grades. St. Cloud's viability is sensitive to the future price of
base and precious metals, particularly silver.
During the six months ended June 30, 1998, The Lordsburg Mining
Company, a wholly-owned subsidiary of the Company ("Lordsburg"),
sold 10,225 tons of construction aggregate material, compared to
15,970 tons sold during the six months ended June 30, 1997.
Production from underground mining at Lordsburg, which was suspended
in February 1994, had previously been intermittent due to low ore
grade and inconsistent smelter demand. The ore produced from the
mine was used by nearby copper smelters as precious metal bearing
siliceous flux. Future demand for underground ores cannot be
determined at this time.
Although the Company has continued limited production of
construction aggregates at Lordsburg, a final decision with respect
to the future operations at Lordsburg has not been reached.
Costs and Expenses
Electrical construction costs were $6,232,159 and $4,908,943 in the
six months ended June 30, 1998 and 1997, respectively. The increase
in costs was attributable to a higher level of operations.
Depreciation and amortization was $527,855 in the six months ended
June 30, 1998, compared to $481,530 in the six months ended June 30,
1997.
General corporate expenses of the Company increased to $798,513 in
the six months ended June 30, 1998, compared to $644,471 in the six
months ended June 30, 1997. The 1998 period included increases in
various categories including consulting expenses relating to the
implementation of new computers and accounting software and the
expensing of previously deferred legal and accounting fees relating
to the start-up costs of a new mining venture.
Results of Operations Three Months Ended June 30, 1998 Compared to
Three Months Ended June 30, 1997.
Net Income (Loss)
The Company incurred a net loss of $235,552 for the three months
ended June 30, 1998, compared to net income of $314,515 for the
three months ended June 30, 1997. The net loss for the three months
ended June 30, 1998 included a charge of $95,618 for an impairment
loss related to the Harlan coal royalty as discussed in Note 4. Net
income for the three months ended June 30, 1997 included an income
tax expense of $239,000.
Revenues
Total revenues for the three months ended June 30, 1998 were
$3,838,298, compared to $4,158,118 in the like 1997 period, a
decrease of 8%.
Electrical construction revenue decreased by 12% in the three months
ended June 30, 1998 to $3,144,228 from $3,559,162 for the three
months ended June 30, 1997. Electrical construction revenue
includes the results of the subsidiary acquired in January 1996,
Fiber Optic Services, which had revenue of $268,354 for the three
months ended June 30, 1998, compared to $355,225 for the three
months ended June 30, 1997.
Revenue from mining operations for the three months ended June 30,
1998 was $573,932, compared to $514,367 for the three months ended
June 30, 1997.
Operating Results
Electrical construction operations had an operating profit of
$197,316 during the three months ended June 30, 1998, compared to an
operating profit of $796,135 during the three months ended June 30,
1997. The decrease in operating results was primarily due to a
decrease in the level of operations and profit margins of Fiber
Optic Services and to losses from a single, long-term unit price
contract.
During the three months ended June 30, 1998, the operating loss from
mining operations was $132,452, compared to an operating profit of
$9,131 during the three months ended June 30, 1997. Operating profit
(loss) includes royalty income and depreciation expense. The
decrease in operating results was primarily a result of the charge
of $95,618 for an impairment loss relating to the Harlan coal
royalty.
St. Cloud sold 3,445 tons of natural zeolite during the three months
ended June 30, 1998, compared to 3,941 tons during the three months
ended June 30, 1997.
Surface and underground mining of base and precious metals have been
halted at St. Cloud since the third quarter of 1991 and the first
quarter of 1992, respectively, due to declining prices and mine
grades. St. Cloud's viability is sensitive to the future price of
base and precious metals, particularly silver.
During the three months ended June 30, 1998, Lordsburg sold 1,149
tons of construction aggregate material, compared to 8,707 tons sold
during the three months ended June 30, 1997.
Costs and Expenses
Electrical construction costs were $2,758,630 and $2,613,665 in the
three months ended June 30, 1998 and 1997, respectively.
Depreciation and amortization was $268,374 in the three months ended
June 30, 1998, compared to $246,507 in the three months ended June
30, 1997.
General corporate expenses of the Company increased to $420,554 in
the three months ended June 30, 1998, compared to $331,340 in the
three months ended June 30, 1997. The 1998 period included increases
in various categories including consulting expenses relating to the
implementation of new computers and accounting software and the
expensing of previously deferred legal and accounting fees relating
to the start-up costs of a new mining venture.
Liquidity and Capital Resources
Cash and cash equivalents at June 30, 1998 were $3,474,399 as
compared to $4,397,281 as of December 31, 1997. Working capital at
June 30, 1998 was $5,746,148, compared to $6,371,043 at December 31,
1997. The Company's ratio of current assets to current liabilities
was 8.6 to 1 at June 30, 1998, compared to 7.3 to 1 at December 31,
1997.
The Company paid cash dividends on its Series A Preferred Stock in
the amount of $11,879 in each of the six month periods ended June
30, 1998 and 1997. No cash dividends have been paid by the Company
on its Common Stock since 1933, and it is not expected that the
Company will pay any cash dividends on its Common Stock in the
immediate future.
Pursuant to an unsecured line of credit agreement between Southeast
Power and SunTrust Bank of Central Florida, N.A. (guaranteed by the
Company), Southeast Power may borrow up to $1,000,000 at the bank's
prime rate of interest. This credit line expires April 30, 1999, at
which time the Company expects to renew it for an additional year.
No borrowings were outstanding under this line of credit during the
six months ended June 30, 1998 and 1997. However, since 1996
$100,000 of this line of credit has been reserved for a standby letter
of credit.
The Company's capital expenditures for the six months ended June 30,
1998 were $897,143, compared to $485,746 for the six months ended
June 30, 1997. The higher level of capital expenditures for the
1998 period was primarily attributable to increase in equipment
purchases in the electrical construction operations.
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security-Holders.
(a) The Annual Meeting of Stockholders was held on June 2, 1998.
(b) This information is omitted pursuant to instruction 3.
(c) At the Annual Meeting of Stockholders, the stockholders elected 5
Directors. Set forth below are the votes cast for the
election of Directors:
For Withheld
John P. Fazzini 20,240,229 1,126,299
Danforth E. Leitner 20,261,129 1,105,399
Dwight W. Severs 20,241,679 1,124,849
John H. Sottile 20,277,089 1,089,439
John M. Starling 20,257,204 1,109,324
The Stockholders also voted to approve the appointment of
KPMG Peat Marwick LLP as Independent Accountants. Votes
cast in favor were 20,847,618, against were 412,628 and
abstaining were 106,232.
The Stockholders also voted to approve the 1998 Executive
Long-Term Incentive Plan. Votes cast in favor were
18,993,246, against were 1,978,515 and abstaining were
364,267. No options have been issued under such plan.
(d) Not applicable.
Item 5. Other Information
Stockholder Proposals
Proposals of stockholders intended to be presented at the Company's
1999 annual meeting of stockholders must be received at the Company's
principal executive offices not later than December 31, 1998 in order
to be included in the Company's proxy statement and form proxy
relating to the 1999 annual meeting.
Pursuant to new amendments to Rule 14a-4(c) of the Securities Exchange
Act of 1934, as amended, if a stockholder who intends to present a
proposal at the 1999 annual meeting of stockholders does not notify
the Company of such proposal on or prior to March 17, 1999, then
management proxies would be allowed to use their discretionary voting
authority to vote on the proposal when the proposal is raised at
the annual meeting, even though there is no discussion of the
proposal in the 1999 proxy statement.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits in accordance with the provisions of Item 601 of
Regulation S-K
None.
(b) Reports on Form 8-K
No Current Report on Form 8-K was filed during the quarter
ended June 30, 1998.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of
1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
THE GOLDFIELD CORPORATION
(Registrant)
Date: August 14, 1998 /s/ Stephen R. Wherry
(Stephen R. Wherry)
Vice President, Treasurer and
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 3,474,399
<SECURITIES> 0
<RECEIVABLES> 1,944,464
<ALLOWANCES> 0
<INVENTORY> 288,491
<CURRENT-ASSETS> 6,505,018
<PP&E> 22,649,715
<DEPRECIATION> 17,834,674
<TOTAL-ASSETS> 13,368,271
<CURRENT-LIABILITIES> 758,870
<BONDS> 0
0
339,407
<COMMON> 2,687,211
<OTHER-SE> 9,413,936
<TOTAL-LIABILITY-AND-EQUITY> 13,368,271
<SALES> 7,933,036
<TOTAL-REVENUES> 8,134,128
<CGS> 7,128,328
<TOTAL-COSTS> 8,515,314
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 95,618
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (381,186)
<INCOME-TAX> 0
<INCOME-CONTINUING> (381,186)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (381,186)
<EPS-PRIMARY> (.01)
<EPS-DILUTED> (.01)
</TABLE>
