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 EXCHANGE ACT OF 1934
For the quarterly period ended April 4, 1997
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 0-05083
HYDE ATHLETIC INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
Massachusetts 04-1465840
(State or other jurisdiction of (I.R.S. employer identification number)
incorporation or organization)
Centennial Industrial Park, 13 Centennial Drive, Peabody, MA 01960
(Address of principal executive offices)
508-532-9000
(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 [ ]
Class Outstanding as of May 12, 1997
Class A Common Stock-$.33 1/3 Par Value 2,703,227
Class B Common Stock-$.33 1/3 Par Value 3,533,659
---------
6,236,886
HYDE ATHLETIC INDUSTRIES, INC. AND SUBSIDIARIES
INDEX
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets as of April 4, 1997
and January 3, 1997 3
Condensed Consolidated Statements of Income for the
thirteen weeks ended April 4, 1997 and April 5, 1996 4
Condensed Consolidated Statements of Stockholders' Equity for
the thirteen weeks ended April 4, 1997 and April 5, 1996 5
Condensed Consolidated Statements of Cash Flows for the
thirteen weeks ended April 4, 1997 and April 5, 1996 6-7
Notes to Condensed Consolidated Financial Statements --
April 4, 1997 8
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 9-11
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 12
Signature 13
<TABLE> HYDE ATHLETIC INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
ASSETS
<CAPTION> April 4, January 3,
1997 1997
---- ----
<S> <C> <C>
- ---
Current Assets
Cash and cash equivalents $ 2,242,024 $ 2,802,864
Marketable securities 236,128 236,128
Accounts receivable 28,518,220 22,840,161
Inventories 26,652,857 28,632,511
Prepaid expenses and other current assets 3,588,346 3,303,437
----------------- -----------------
Total Current Assets 61,237,575 57,815,101
----------------- -----------------
Property, plant, and equipment, net 9,176,137 9,217,468
----------------- -----------------
Other Assets
Goodwill 1,239,584 1,250,001
Other assets 3,206,432 3,309,156
----------------- -----------------
Total Other Assets 4,446,016 4,559,157
----------------- -----------------
Total Assets $ 74,859,728 $ 71,591,726
================= =================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Notes payable $ 8,031,421 $ 4,237,083
Accounts payable 4,074,632 3,970,194
Accrued expenses and other current liabilities 2,810,534 3,517,047
Current maturities of long term debt 4,032,732 2,484,459
----------------- -----------------
Total Current Liabilities 18,949,319 14,208,783
----------------- -----------------
Long-term debt 3,168,034 4,892,753
----------------- -----------------
Deferred income taxes 1,902,926 1,923,708
----------------- -----------------
Minority interest 490,276 487,865
----------------- -----------------
Stockholders' Equity
Common stock, $.33 1/3 par value 2,145,095 2,145,095
Additional paid in capital 15,581,353 15,581,353
Retained earnings 33,988,158 33,704,957
Accumulated translation (256,799) (233,654)
------------------ ------------------
Total 51,457,807 51,197,751
Less: Unearned compensation (54,844) (65,344)
Treasury stock (1,053,790) (1,053,790)
------------------ ------------------
Total Stockholders' Equity 50,349,173 50,078,617
----------------- -----------------
Total Liabilities and Stockholders' Equity $ 74,859,728 $ 71,591,726
================= =================
See notes to condensed consolidated financial statements
</TABLE>
<TABLE>
HYDE ATHLETIC INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE THIRTEEN WEEKS ENDED APRIL 4, 1997 AND APRIL 5, 1996
(Unaudited)
<CAPTION>
April 4, April 5,
1997 1996
---- ----
<S> <C> <C>
Net sales $ 27,198,879 $ 31,891,893
Other income (expense) (146,855) 249,654
----------------- ---------------
Total revenue 27,052,024 32,141,547
---------------- ---------------
Costs and expenses
Cost of sales 18,315,718 22,587,788
Selling, general and
administrative expenses 7,946,378 7,889,063
Interest expense 280,210 263,198
---------------- ---------------
Total costs and expenses 26,542,306 30,740,049
---------------- ---------------
Income before income taxes
and minority interest 509,718 1,401,498
Provision for income taxes 191,974 526,618
Minority interest in income of
consolidated subsidiaries 34,543 135,411
---------------- ---------------
Net income $ 283,201 $ 739,469
================ ===============
Per share amounts:
Net income $ 0.05 $ 0.12
=============== ===============
Weighted average common shares
and equivalents outstanding 6,269,846 6,225,960
================ ===============
Cash dividends per share of
common stock 0 0
================ ===============
See notes to condensed consolidated financial statements
</TABLE>
<TABLE>
HYDE ATHLETIC INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
FOR THE THIRTEEN WEEKS ENDED APRIL 4, 1997 AND APRIL 5, 1996
(Unaudited)
<CAPTION>
Common Stock Paid-In Retained
Class A Class B Capital Earnings
------ ------ ------ --------
<S> <C> <C> <C> <C>
Balance, January 5, 1996 $ 901,575 $ 1,236,939 $ 15,521,470 $ 32,210,867
Amortization of unearned
compensation -- -- -- --
Net income -- -- -- 739,469
Foreign currency translation
adjustments -- -- -- --
----------- ------------- ------------- -------------
Balance, April 5, 1996 $ 901,575 $ 1,236,939 $ 15,521,470 $ 32,950,336
=========== ============= ============= =============
Balance, January 3, 1997 $ 902,075 $ 1,243,020 $ 15,581,353 $ 33,704,957
Amortization of unearned
compensation -- -- -- --
Net income -- -- -- 283,201
Foreign currency translation
adjustments -- -- -- --
----------- ------------- ------------- -------------
Balance, April 4, 1997 $ 902,075 $ 1,243,020 $ 15,581,353 $ 33,988,158
=========== ============= ============= =============
Treasury Stock Unearned Accumulated Stockholders'
Shares Amount Compensation Translation Equity
------ ------ ------------ ---------- ------
<S> <C> <C> <C> <C> <C>
Balance, January 5, 1996 198,400 ($ 1,053,790) ($ 194,313) ($ 257,694) $ 48,365,054
Amortization of unearned
compensation -- -- 32,175 -- 32,175
Net income -- -- -- -- 739,469
Foreign currency translation
adjustments -- -- -- 50,243 50,243
----------- ------------- ------------- ------------- -------------
Balance, April 5, 1996 198,400 ($ 1,053,790) ($ 162,138) ($ 207,451) $ 49,186,941
=========== ============== ============== ============ =============
Balance, January 3, 1997 198,400 ($ 1,053,790) ($ 65,344) ($ 233,654) $ 50,078,617
Amortization of unearned
compensation -- -- 10,500 -- 10,500
Net income -- -- -- -- 283,201
Foreign currency translation
adjustments -- -- -- (23,145) (23,145)
----------- ------------- ------------- -------------- --------------
Balance, April 4, 1997 198,400 ($ 1,053,790) ($ 54,844) ($ 256,799) $ 50,349,173
=========== ============== ============== ============== =============
See notes to condensed consolidated financial statements.
</TABLE>
<TABLE>
HYDE ATHLETIC INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THIRTEEN WEEKS ENDED APRIL 4, 1997 AND APRIL 5, 1996
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(Unaudited)
<CAPTION>
April 4, April 5,
1997 1996
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net income $ 283,201 $ 739,469
---------------- ---------------
Adjustments to reconcile net income to
net cash
Provided (used) by operating activities:
Depreciation and amortization 397,547 365,645
Deferred income tax benefit (242,962) (162,886)
Provision for bad debts and discounts 1,620,761 1,786,267
Minority interest in income of
consolidated subsidiaries 34,543 135,411
Compensation from stock grants and
stock options 10,500 32,175
Loss on sale of equipment -- 4,372
Writedown of investment in limited partnership 50,000 --
Changes in operating assets and liabilities,
net of effects of foreign currency adjustments:
Decrease (increase) in assets:
Marketable securities -- 157,110
Accounts receivable (7,231,636) (12,795,009)
Inventories 1,679,496 3,512,645
Prepaid expenses and other current
assets (293,502) (105,293)
Increase (decrease) in liabilities:
Accounts payable 148,078 (873,280)
Accrued expenses (494,180) 1,182,437
----------------- ---------------
Total adjustments (4,321,355) (6,760,406)
----------------- ----------------
Net cash used by operating activities (4,038,154) (6,020,937)
----------------- ----------------
Cash flows from investing activities:
Purchases of property, plant and
equipment (244,607) (252,763)
Increase in deferred charges,
and other (260,531) (35,289)
Proceeds from sale of equipment -- 76,896
---------------- ---------------
Net cash used by investing activities (505,138) (211,156)
----------------- ----------------
Cash flows from financing activities:
Net short-term borrowings 3,884,847 (124,697)
Repayment of long term debt
and capital lease obligations (169,418) (108,430)
Proceeds from long-term borrowings -- 419,766
---------------- ---------------
Net cash provided by financing activities 3,715,429 186,639
Effect of exchange rate changes on cash
and cash equivalents 267,023 (73,046)
---------------- ----------------
Net decrease in cash and cash equivalents (560,840) (6,118,500)
Cash and equivalents at, beginning of
period 2,802,864 11,668,316
---------------- ---------------
Cash and equivalents at, end of period $ 2,242,024 $ 5,549,816
================ ===============
Supplemental disclosure of cash flow
information:
Cash paid during the period for:
Incomes taxes $ 30,094 $ 76,595
================ ===============
Interest $ 171,895 $ 60,611
================ ===============
Non-cash investing and financing activities:
Property purchased under capital leases $ 29,750 $ 42,740
================ ===============
See notes to condensed consolidated financial statements
</TABLE>
HYDE ATHLETIC INDUSTRIES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
April 4, 1997
(Unaudited)
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with the instructions to Form 10-Q and, therefore, do not
include all information and footnotes necessary for a fair presentation of
financial position, results of operations, and cash flows in conformity with
generally accepted accounting principle. In the opinion of Management, all
adjustments (consisting solely of normal recurring adjustments) necessary for a
fair presentation have been included. These interim consolidated financial
statements should be read in conjunction with the audited consolidated financial
statements and the notes, thereto, included in the Company's Annual Report on
Form 10-K, as filed with the Securities and Exchange Commission, for the year
ended January 3, 1997. Operating results for thirteen weeks ended April 4,
1997, are not necessarily indicative of the results for the entire year.
NOTE B - INVENTORIES
Inventories at April 4, 1997 and January 3, 1997 consisted of the following:
April 4, January 3,
1997 1997
---- ----
Finished Goods $22,235,825 $22,309,805
Work in Process 390,513 110,559
Raw Materials 4,026,519 6,212,147
----------- -----------
$26,652,857 $28,632,511
=========== ===========
NOTE C - NEW ACCOUNTING PRONOUNCEMENTS
During the first quarter of 1997, the Financial Accounting Standards Board
issued Financial Accounting Standards No. 128 "Earnings Per Share" (SFAS 128).
SFAS 128 is intended to improve the Earnings Per Share ("EPS") information
contained in the financial statements by simplifying the calculation of earnings
per share, revising the disclosure requirements, and achieving comparability
with international accounting standards. SFAS 128 is effective after December
15, 1997. The Company will incorporate SFAS 128 into the Form 10-K filing, with
the Securities and Exchange Commission, for the year ended January 2, 1998. The
Company has not determined the impact of adopting SFAS 128 on the consolidated
financial statements for the fiscal year ended January 2, 1998.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following table sets forth net sales and percentages of net sales of the
Company's product lines in the thirteen weeks ended April 4, 1997 and April 5,
1996:
1997 1996
-------------------- --------------------
$ % $ %
Saucony $21,266,000 78.2% $25,709,000 80.6%
Brookfield 1,982,000 7.3% 3,254,000 10.2%
Other 3,951,000 14.5% 2,929,000 9.2%
----------- ----- ---------- -----
Total $27,199,000 100.0% $31,892,000 100.0%
=========== ====== =========== ======
Thirteen Weeks Ended April 4, 1997 Compared to Thirteen Weeks Ended April 5,
1996
The Company's net sales decreased by 15% to $27,199,000 in the thirteen weeks
ended April 4, 1997 from $31,892,000 in the thirteen weeks ended April 5, 1996.
Net sales of the Company's Saucony products decreased 17% to $21,266,000 in the
thirteen weeks ended April 4, 1997 from $25,709,000 in the thirteen weeks ended
April 5, 1996, due to decreased unit shipments of special make-up and
discontinued merchandise. Saucony domestic net sales decreased 20% to
$14,915,000 in the thirteen weeks ended April 4, 1997 from $18,570,000 in the
thirteen weeks ended April 5, 1996, due to decreased unit shipment volume of
non-current models, offset in part by higher selling prices of the Company's
recently introduced products. Saucony foreign net sales decreased by 11% to
$6,351,000 in the thirteen weeks ended April 4, 1997 from $7,139,000 in the
thirteen weeks ended April 5, 1996, due primarily to decreased unit shipment
volume and to a lesser extent, unfavorable currency exchange rates.
Net sales of the Company's Brookfield products decreased by 39% to $1,982,000 in
the thirteen weeks ended April 4, 1997 from $3,254,000 in the thirteen weeks
ended April 5, 1996. Domestic sales of Brookfield products decreased by 40% to
$1,123,000 in the thirteen weeks ended April 4, 1997 from $1,882,000 in the
thirteen weeks ended April 5, 1996, due to lower unit shipment volume for
certain licensed products and a shift in the sales mix to lower-priced products.
The Company believes this decrease resulted from an oversupply of inventory at
the retail level, combined with marginal acceptance of certain new product
offerings. Foreign sales of Brookfield products decreased 37% to $859,000 in
the thirteen weeks ended April 4, 1997 from $1,372,000 in the thirteen weeks
ended April 5, 1996, due primarily to decreased unit shipment volume.
Net sales of other products increased 35% to $3,951,000 in the thirteen weeks
ended April 4, 1997 from $2,929,000 in the thirteen weeks ended April 5, 1996,
due primarily to increased sales of non-corporate brands realized by the
Company's Australian subsidiary and to a lesser extent, increased sales by the
Company's wholly-owned subsidiary, Quintana Roo, Inc.
Other income (expense) decreased 159% to ($147,000) in the thirteen weeks ended
April 4, 1997 from $250,000 in the thirteen weeks ended April 5, 1996, due
primarily to foreign currency transaction losses on U.S. dollar denominated
obligations held by certain of the Company's foreign subsidiaries and to a
lesser extent, reduced income on lower levels of short-term cash investments and
the partial writedown of the Company's investment in a limited partnership.
The Company's gross profit decreased to $8,883,000 in the thirteen weeks ended
April 4, 1997 from $9,304,000 in the thirteen weeks ended April 5, 1996. The
Company's gross margin percentage increased to 32.7% in the thirteen weeks ended
April 4, 1997 from 29.2% in the thirteen weeks ended April 5, 1996 due primarily
to increased margin for Saucony products. The gross margin increase for Saucony
products resulted from the shipment, in the thirteen weeks ended April 5, 1996,
of a single slow-moving, non-current model. This resulted in a significant
negative impact on the gross margin, decreased sales of other lower-margin
footwear, and to a lesser extent, decreased freight costs and reduced
manufacturing costs. The decline in Brookfield gross margin resulted from a
shift in the sales mix to lower margin domestic Brookfield product.
Selling, general and administrative expenses increased to $7,947,000, or 29.2%
of net sales, in the thirteen weeks ended April 4, 1997 from $7,889,000, or
24.7% of net sales, in the thirteen weeks ended April 5, 1996. Advertising and
promotion expenses decreased $257,000 in the thirteen weeks ended April 4, 1997
due primarily to decreased Saucony domestic television and print media
advertising. Selling expenses decreased by $69,000 in the thirteen weeks ended
April 4, 1997, due to an initiative to reduce commissions on sales of Saucony
products and due to reduced sales of Saucony products. General and
administrative expenses increased $384,000 in the thirteen weeks ended April 4,
1997 due to increased professional fees, both domestic and foreign, increased
costs related to the Company's recently acquired information system, and
increased foreign costs for payroll due to increased staffing at certain of the
Company's foreign subsidiaries.
Interest expense increased 6% to $280,000 in the thirteen weeks ended April 4,
1997 from $263,000 in the thirteen weeks ended April 5, 1996, due to increased
borrowings on the Company's credit facility and increased asset-based borrowing.
The provision for income taxes declined by $335,000 in the thirteen weeks ended
April 4, 1997 as compared to the thirteen weeks ended April 5, 1996 due to a
decrease in the Company's pretax earnings. The effective tax rate increased by
0.1% to 37.7% in the thirteen weeks ended April 4, 1997 from 37.6% in the
thirteen weeks ended April 5, 1996.
LIQUIDITY AND CAPITAL RESOURCES
As of April 4, 1997, the Company's cash and cash equivalents totalled
$2,478,000, a decrease of $561,000 from January 3, 1997. The decrease was the
result of an increase in accounts receivable of $5,611,000, net of the provision
for bad debts and discounts of $1,621,000, offset in part by a decrease of
$1,679,000 in inventory and the depreciation and amortization provision of
$398,000. The increase in accounts receivable is due in part to increased net
sales of the Company's Saucony product in the thirteen weeks ended April 4, 1997
and increased payment terms given to certain of the Company's customers. The
Company's days sales outstanding for its accounts receivable increased to 98
days in the thirteen weeks ended April 4, 1997 from 81 days in the thirteen
weeks ended April 5, 1996. Inventories decreased in the thirteen weeks ended
April 4, 1997 due to improved domestic inventory management. The Company's
inventory turn ratio decreased to 2.7 turns in the thirteen weeks ended April 4,
1997 from 3.6 turns in the thirteen weeks ended April 5, 1996, due to
comparatively higher inventory levels and the significant inventory reduction
realized as the result of the sale of a non-current model in the thirteen weeks
ended April 5, 1996.
For the thirteen weeks ended April 4, 1997, the Company used $4,038,000 of net
cash to finance operating activities, expended $505,000 to acquire capital
assets and information technology, increased short-term borrowings by
$3,885,000, and, expended $169,000 to reduce long-term debt.
Principal factors (other than net income, accounts receivable, provision for bad
debts and discounts and inventory) affecting the operating cash flows in the
thirteen weeks ended April 4, 1997, included an increase in accounts payable of
$148,000 (due to the timing of inventory shipments), an increase in prepaid
expenses of $294,000 (due to advance payments of certain selling and
administrative expenses) and a decrease in accrued expenses of $494,000 (due to
a change in payment terms for sales commissions). The strengthening of the U.S.
dollar increased the value of cash and cash equivalents by $267,000.
As of April 4, 1997, the Company had various commitments for capital
expenditures, including information technology. The Company plans to finance
such expenditures with a mix of internally generated funds and asset-based
lending. The Company believes that these commitments are not significant.
The liquidity of the Company is contingent upon a number of factors, principally
the Company's future operating results. Management believes that the Company's
current cash and cash equivalents, credit facilities and internally generated
funds are adequate to meet its working capital requirements and to fund its
capital investment needs and debt service payments.
INFLATION AND CURRENCY RISK
The effect of inflation on the Company's results of operations over the past
three years has been minimal. The impact of currency fluctuation on the
purchase of inventory by the Company, from foreign suppliers, has been minimal
as the transactions were denominated in U.S. dollars. The Company, however, is
subject to currency fluctuation with respect to the operating results of the
Company's foreign subsidiaries and certain foreign currency denominated
payables.
FASB 128
During the first quarter of 1997, the Financial Accounting Standards Board
issued Financial Accounting Standards No. 128 "Earnings Per Share" (SFAS 128).
SFAS 128 is intended to improve the Earnings Per Share ("EPS") information
contained in the financial statements by simplifying the calculation of earnings
per share, revising the disclosure requirements, and achieving comparability
with international accounting standards. SFAS 128 is effective after December
15, 1997. The Company will incorporate SFAS 128 into the Form 10-K filing, with
the Securities and Exchange Commission, for the year ended January 2, 1998. The
Company has not determined the impact of adopting SFAS 128 on the consolidated
financial statements for the fiscal year ended January 2, 1998.
PART II
OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a. Exhibits
11.00 - Computation of Earnings Per Share
27.00 - Financial Data Schedule
b. Reports on Form 8-K.
None.
SIGNATURE
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.
HYDE ATHLETIC INDUSTRIES, INC.
Date: May 16, 1997 By: /s/Charles A. Gottesman
-----------------------
Charles A. Gottesman
Executive Vice President
Chief Operating Officer
(Duly authorized officer and
principal financial officer)
<TABLE>
HYDE ATHLETIC INDUSTRIES, INC. AND SUBSIDIARIES
EXHIBIT 11 - COMPUTATION OF EARNINGS PER SHARE
<CAPTION>
For the
Thirteen Weeks Ended
--------------------
April 4, April 5,
1997 1996
---- ----
<S> <C> <C>
PRIMARY
Net income applicable to common stock $ 283,201 $ 739,469
----------------- -----------------
Weighted average shares:
Average shares outstanding 6,236,886 6,217,142
Dilutive stock options based upon
application of the treasury stock
method using average market price 32,960 8,818
----------------- -----------------
Total shares 6,269,846 6,225,960
================= =================
Net income per share $ 0.05 $ 0.12
================= =================
FULLY DILUTED
Net income applicable to common stock $ 283,201 $ 739,469
----------------- -----------------
Weighted average shares
Average shares outstanding 6,236,886 6,217,142
Dilutive stock options based upon
application of the treasury stock method
using market price at end of period or
average market price, if greater 33,056 8,818
----------------- -----------------
Total shares 6,269,942 6,225,960
================= =================
Net income per share $ 0.05 $ 0.12
================= =================
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Hyde
Athletic Industries, Inc. Form 10-Q for the period ended April 4, 1997 and is
qualified in its entirety by reference to such 10-Q.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-02-1998
<PERIOD-END> APR-04-1997
<CASH> 2,242,024
<SECURITIES> 236,128
<RECEIVABLES> 28,518,220
<ALLOWANCES> 613,525
<INVENTORY> 26,652,857
<CURRENT-ASSETS> 61,237,575
<PP&E> 16,943,248
<DEPRECIATION> 7,767,111
<TOTAL-ASSETS> 74,859,728
<CURRENT-LIABILITIES> 18,949,319
<BONDS> 3,168,034
0
0
<COMMON> 2,145,095
<OTHER-SE> 48,204,078
<TOTAL-LIABILITY-AND-EQUITY> 74,859,728
<SALES> 27,198,879
<TOTAL-REVENUES> 27,052,024
<CGS> 18,315,718
<TOTAL-COSTS> 18,315,718
<OTHER-EXPENSES> 7,946,378
<LOSS-PROVISION> 115,347
<INTEREST-EXPENSE> 280,210
<INCOME-PRETAX> 509,718
<INCOME-TAX> 191,974
<INCOME-CONTINUING> 283,201
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 283,201
<EPS-PRIMARY> 0.05
<EPS-DILUTED> 0.05
</TABLE>
