<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------------
FORM 10-QSB
/ / QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended September 30, 1995
----------------------------
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from to
---------------- ---------------
Commission File No. O-5258
IEH CORPORATION
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
New York 1365549348
- -------------------- ---------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
140 58th Street, Suite 8E, Brooklyn, New York 11220
- --------------------------------------------------------------------------------
(Address of principal executive office)
Registrant's telephone number, including area code: (718) 492-4440
--------------
------------------------------------------------------------------
Former name, former address and former fiscal year,
if changed since last report.
Check whether the Issuer: (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
----- -----
2,303,502 shares of Common Shares, par value $.50 per share,
were outstanding as of November 7, 1995.
<PAGE> 2
IEH CORPORATION
CONTENTS
<TABLE>
<CAPTION>
Page
Number
------
<S> <C>
PART 1 - FINANCIAL INFORMATION:
ITEM 1 - FINANCIAL STATEMENTS
Balance Sheets
September 30, 1995 (Unaudited)
and March 31, 1995 1
Statement of Operations
(Unaudited) for the six months
ended September 30, 1995 and
September 30, 1994 3
Statement of Cash Flows (Unaudited)
for the six months ended September 30, 1995
and September 30, 1994 4
Notes to Financial Statements
(Unaudited) 6
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
13
PART II - OTHER INFORMATION 15
</TABLE>
<PAGE> 3
IEH CORPORATION
BALANCE SHEETS
As of September 30, 1995 and March 31, 1995
<TABLE>
<CAPTION>
September 30, March 31,
1995 1995
------------- ----------
(Unaudited) (Note 1)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash $ 300 $ 300
Accounts receivable,less allowance for
doubtful accounts of $10,062 at Sept 30, 1995,
and March 31, 1995 629,115 793,083
Inventories ( Note 2 ) 986,934 1,020,309
Prepaid expenses and other current assets ( Note 3 ) 84,742 89,001
Other receivables 63,192 35,771
---------- ----------
Total current assets 1,764,283 1,938,464
---------- ----------
PROPERTY, PLANT AND EQUIPMENT,less accumulated
depreciation and amortization of $4,837,180 at
Sept 30, 1995 and $4,704,880 at March 31, 1995 1,596,389 1,630,362
---------- ----------
OTHER ASSETS:
Prepaid pension cost 160,652 160,652
Other assets 48,257 49,007
---------- ----------
208,909 209,659
---------- ----------
Total assets $3,569,581 $3,778,485
========== ==========
</TABLE>
See accompanying notes to financial statements
-1-
<PAGE> 4
IEH CORPORATION
BALANCE SHEETS
As of September 30, 1995 and March 31, 1995
<TABLE>
<CAPTION>
September 30, March 31,
1995 1995
------------- -----------
(Unaudited) (Note 1)
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts receivable financing $ 464,799 $ 585,620
Notes payable, current portion 1,541 15,706
Loan payable, current portion (Note 5) 42,815 43,604
Accrued corporate income taxes 27,752 13,794
Union pension, health and welfare,current portion (Note 6) 120,000 120,000
Accounts payable 1,132,229 953,532
Other current liabilities (Note 4) 181,979 262,892
----------- -----------
Total current liabilities 1,971,115 1,995,148
----------- -----------
LONG-TERM LIABILITIES:
Pension plan payable 439,327 438,651
Notes payable, less current portion 2,247 4,750
Loan payable, less current portion (Note 5) 300,755 320,533
Union pension, health and welfare,long-term (Note 6) 323,662 325,947
----------- -----------
Total long-term liabilities 1,065,991 1,089,881
----------- -----------
Total liabilities 3,037,106 3,085,029
----------- -----------
STOCKHOLDERS' EQUITY:
Common stock, $.50 par value;
10,000,000 shares authorized,
2,303,502 shares issued and outstanding 1,151,751 1,151,751
Capital in excess of par value 1,615,874 1,615,874
Retained earnings, (Deficit) (2,235,150) (2,074,169)
----------- -----------
Total stockholders' equity 532,475 693,456
----------- -----------
Total liabilities and stockholders' equity $ 3,569,581 $ 3,778,485
=========== ===========
</TABLE>
See accompanying notes to financial statements
-2-
<PAGE> 5
IEH CORPORATION
STATEMENT OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended Three Months Ended
------------------------------ ------------------------------
Sept 30, Sept 30, Sept 30, Sept 30,
1995 1994 1995 1994
----------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
REVENUES,net sales $ 1,870,487 $2,651,461 $ 838,839 $1,332,067
----------- ---------- ----------- ----------
COSTS AND EXPENSES:
Cost of products sold 1,474,929 1,979,610 663,885 1,008,789
Selling, general and
administrative 341,046 452,217 142,968 221,191
Interest 69,993 67,590 32,277 37,019
Depreciation and
amortization 132,900 134,400 66,450 66,750
----------- ---------- ----------- ----------
2,018,868 2,633,817 905,580 1,333,749
----------- ---------- ----------- ----------
INCOME (LOSS) BEFORE
INCOME TAXES (148,381) 17,644 (66,741) (1,682)
PROVISION FOR
INCOME TAXES 12,600 12,455 6,300 6,455
----------- ---------- ----------- ----------
NET INCOME (LOSS) $ (160,981) $ 5,189 $ (73,041) $ (8,137)
=========== ========== =========== ==========
NET INCOME (LOSS) PER
COMMON SHARE $ (.07) $ .002 $ (.03) $ (.01)
=========== ========== =========== ==========
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES OUTSTANDING
(in thousands) 2,304 2,304 2,304 2,304
=========== ========== =========== ==========
</TABLE>
See accompanying notes to financial statements
-3-
<PAGE> 6
IEH CORPORATION
STATEMENTS OF CASH FLOWS
Increase (Decrease) in Cash
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
-------------------------------
September 30, September 30,
1995 1994
------------- -------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income(loss) $(160,981) $ 5,189
--------- ---------
Adjustments to reconcile net income(loss)
to net cash used in operating activities:
Depreciation and amortization 132,900 134,400
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 163,968 131,853
(Increase) decrease in inventories 33,375 10,429
(Increase) decrease in prepaid expenses
and other current assets 4,259 28,924
(Increase) decrease in other receivables (27,421) (3,288)
(Increase) decrease in other assets 750 --
(Increase) decrease in prepaid and refundable
income taxes -- 271
(Decrease) increase in accounts payable 178,697 216,704
(Decrease) increase in other current liabilities (80,913) (76,440)
Increase in accrued corporate income taxes payable 13,958 (40,493)
Increase in due to union pension and health and welfare (2,285) 5,175
(Decrease) increase in pension plan payable 676 (30,862)
--------- ---------
Total adjustments 417,964 376,673
--------- ---------
NET CASH USED IN OPERATING ACTIVITIES 256,983 381,862
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment (98,847) (140,541)
--------- ---------
NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES (98,847) (140,541)
--------- ---------
</TABLE>
See accompanying notes to financial statements
-4-
<PAGE> 7
IEH CORPORATION
STATEMENTS OF CASH FLOWS (CONTINUED)
Increase (Decrease) in Cash
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
--------------------------------
September 30, September 30,
1995 1994
------------- -------------
<S> <C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on notes payable $ (16,668) $(223,378)
Proceeds from loan payable -- --
Proceeds from accounts receivable financing -- (12,715)
Principal payments on accounts receivable financing (120,821) (21,350)
Principal payments on loan payable (20,567) 8,249
--------- ---------
NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES (158,056) (249,194)
--------- ---------
INCREASE (DECREASE) IN CASH (--) (7,873)
CASH, beginning of year 300 8,173
--------- ---------
CASH, end of year $ 300 $ 300
========= =========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION, cash paid during the six months for:
Interest $ 69,993 $ 67,590
========= =========
Income Taxes $ 12,600 $ 12,455
========= =========
</TABLE>
See accompanying notes to financial statements
-5-
<PAGE> 8
IEH CORPORATION
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 1- FINANCIAL STATEMENTS:
The accompanying financial statements of IEH Corporation("The Company")
for the six months ended September 30, 1995 and September 30, 1994 have
been prepared in accordance with the instructions to Form 10-QSB and do
not include all of the information and footnotes required by generally
accepted accounting principles. The financial statements have been
prepared by management from the books and records of the Company and
reflect, in the opinion of management, all adjustments (consisting of
normal recurring accruals) necessary for a fair presentation of the
financial position, results of operations, and cash flows of the
Company. These statements should be read in conjunction with the
financial statements and notes thereto included in the Company's annual
report Form 10-KSB for the fiscal year ended March 31, 1995. The
balance sheet at March 31, 1995 has been taken from the audited
financial statements of that date.
NOTE 2- INVENTORIES:
Inventories are comprised of the following:
<TABLE>
<CAPTION>
September 30, March 31,
1995 1995
------------- ---------
(Unaudited)
<S> <C> <C>
Raw materials $552,683 $ 575,144
Work in process 108,563 115,070
Finished goods 325,688 330,095
-------- ----------
$986,934 $1,020,309
======== ==========
</TABLE>
Inventories are priced at the lower of cost (first-in, first -out
method) or market. During the current fiscal year, the Company
established a reserve for obsolescence to reflect net realizable value.
The balance of this reserve as of September 30, 1995 was $24,000.
Inventories at September 30, 1995 are recorded net of this reserve.
-6-
<PAGE> 9
IEH CORPORATION
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 3- PREPAID EXPENSES AND OTHER CURRENT ASSETS:
Prepaid expenses and other current assets are comprised of the
following:
<TABLE>
<CAPTION>
September 30, March 31,
1995 1995
------------- ---------
(Unaudited)
<S> <C> <C>
Prepaid insurance $ 44,529 $ 20,843
Other current assets 18,663 68,158
-------- --------
$ 63,192 $ 89,001
======== ========
</TABLE>
NOTE 4- OTHER CURRENT LIABILITIES:
Other current liabilities are comprised of the following:
<TABLE>
<CAPTION>
September 30, March 31,
1995 1995
------------- ---------
(Unaudited)
<S> <C> <C>
Payroll and vacation accruals $ - $ 15,075
Sales commissions 9,685 7,315
License fees 107,200 75,417
Pension plan payable 26,335 35,049
Other 38,759 130,036
-------- --------
$181,979 $262,892
======== ========
</TABLE>
NOTE 5- LOAN PAYABLE:
On July 22, 1992, the Company obtained a loan of $435,000 from the New
York State Urban Development Corporation, ("UDC") collateralized by
machinery and equipment. The loan is payable over ten years, with
interest rates progressively increasing from 3% to 7%. On May 25, 1995
the UDC increased the rate of interest 1% to 5% per annum retroactive
to March 31, 1995. The balance remaining at September 30, 1995 was
$343,570.
-7-
<PAGE> 10
IEH CORPORATION
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 5- LOAN PAYABLE (CONTINUED):
Aggregate future principal payments are as follows:
<TABLE>
<CAPTION>
Fiscal Year Ending March:
<S> <C>
1995 $ 42,727
1995 43,603
1996 44,543
1997 46,314
Thereafter 166,383
--------
$343,570
========
</TABLE>
As of September 30, 1995, the Company had failed to meet one of the
financial covenants of the loan agreement; namely that the "Company
shall be obligated to maintain a tangible net worth of not less than
$1,000,000 for the duration of the loan". The Company reported tangible
net worth of $532,475 at September 30, 1995. The inability of the
Company to meet this covenant is ascribed to the reported net loss of
$637,899 for the year ended March 26, 1993 which reduced tangible net
worth from $1,467,280 as reported at March 27, 1992.
The Company had previously received a waiver of this covenant from the
UDC through the period ending March 31, 1994. The UDC is presently
reviewing the financial statements of the Company for the year ended
March 31, 1995 with respect to consideration of the granting of an
additional waiver of this covenant.
There are no assurances that the Company will receive any additional
waivers of this covenant through the period ending September 30, 1995.
Should the Company not receive any additional waivers of this covenant,
then it will be deemed to be in default of this loan obligation to the
UDC and the entire loan plus interest will become due and payable.
-8-
<PAGE> 11
IEH CORPORATION
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 6- COMMITMENTS:
The Company has, with the United Auto Workers of America, Local 259, a
collective bargaining multi-employer pension plan. Contributions are
made in accordance with a negotiated labor contract and are based on
the number of covered employees employed per month. With the passage of
the Multi-Employer Pension Amendments Act of 1980 ("The Act"), the
Company may become subject to liabilities in excess of contributions
made under the collective bargaining agreement. Generally, these
liabilities are contingent upon the termination, withdrawal, or partial
withdrawal from the Plan. The Company has not taken any action to
terminate, withdraw or partially withdraw from the Plan nor does it
intend to do so in the future. Under the Act, liabilities would be
based upon the Company's proportional share of the Plan's unfunded
vested benefits which is currently not available. The amount of
accumulated benefits and net assets of such Plan also is not currently
available to the Company. Total contributions charged to operations
under this pension plan were $22,701 for the six months ended September
30, 1995.
In December, 1993, the Company and Local 259 entered into a verbal
agreement whereby the Company would satisfy this debt by the following
payment schedule:
The sum of $10,000 will be paid by the Company each month in
satisfaction of the current arrears until this total debt has
been paid. Under this agreement, the projected payment
schedule for arrears will satisfy the total debt in 49 months.
Additionally, both parties have agreed that current obligatory
funding by the Company will be made on a timely current basis.
Effective February 1, 1995, the Company withdrew from the union's
health and welfare plan,and offered and provided its employees an
alternative health insurance plan.
As of September 30, 1995, the Company reported arrears with respect to
its past contributions to the union's health and welfare plan and
contributions to the pension plan. The amount due the health and
welfare plan was $209,889 and the amount due the pension plan was
$233,773, for a total of $443,662.
Subsequent to the balance sheet date, the Company was notified that the
United Auto Workers of America, Local 259, that in the Union's
determination, the Company had affected a withdrawal liability from the
pension plan, and that the Company's liability was greater than what
the Company has reported.
The Company is contesting the union's determination and at present is
seeking documentation from the union to verify the claim as to
withdrawal and the claimed lability.
-9-
<PAGE> 12
IEH CORPORATION
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 6- COMMITMENTS (CONTINUED):
The Company has a pension plan for its salaried employees. At September
30, 1995, the Company reported a total pension liability of $465,662.
Of this amount, $26,335 is included in other current liabilities, with
the balance of $439,327 being reported as a long-term liability. The
Company has been unable to fund contributions to the Plan and has
applied to the Internal Revenue Service for a waiver of the minimum
funding requirement. Additionally, the Company has applied to the
Pension Benefit Guaranty Corporation for relief and termination of the
Plan. No determination has been made by either the Internal Revenue
Service or the Pension Benefit Guaranty Corporation to the Company's
requests.
NOTE 7- CHANGES IN STOCKHOLDERS' EQUITY:
Retained earnings decreased by $73,041 which represents the net loss
for the three months ended September 30 1995.
-10-
<PAGE> 13
ITEM 2- MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
RESULTS OF OPERATIONS:
The following table sets forth for the periods indicated, sales
revenues and percentages for certain items in the financial data as
such items bear to the revenues of the Company:
<TABLE>
<CAPTION>
Six Months Ended
---------------------------------
September 30, September 30,
1995 1994
------------- -------------
<S> <C> <C>
Revenues, net sales(in thousands) $ 1,870 $ 2,651
-------- --------
Costs and Expenses:
(as a percentage of revenues)
Cost of products sold 78.9% 74.7%
Selling,general and administrative 18.2% 17.0%
Interest expense 3.7% 2.5%
Depreciation and amortization 7.1% 5.1%
-------- --------
Total costs and expenses 107.9% 99.3%
-------- --------
Income (loss) before income taxes (7.9%) .7%
-------- --------
Provision for income taxes (.7%) .5%
-------- --------
Net income (loss) (8.6%) .2%
======== ========
</TABLE>
COMPARATIVE ANALYSIS:
Operating revenues for the six month period ending September 30, 1995 amounted
to $1,870,487 reflecting a 29% decrease versus the prior six month period
ending September 30, 1994 of $2,651,461. The decrease in revenues in this
comparative period reflects a continued decrease in governmental and military
procurement and the Company's efforts to redirect its sales efforts to
commercial electronic sales.
-11-
<PAGE> 14
COMPARATIVE ANALYSIS (continued)
Cost of products sold amounted to $1,474,929 for the six months ended September
30, 1995, or 78.9% of revenues. This reflected a decrease of 25.5% in the cost
of products sold from $1,979,610 or 74.7% of revenues from the comparative six
month period ended September 30, 1994. This decrease is primarily due to the
decrease in revenues as a result of decreased governmental and military
procurement.
Selling, general and administrative expenses were $341,046 or 18.2% of
revenues, compared to $452,217 or 17.0% of revenues for the comparative six
month period ending September 30, 1994. This decrease of 24.6% was attributed
to certain fixed costs remaining constant despite a decline in sales during
this period.
Interest expense was $69,993 or 3.7% of revenues as compared to $67,590 or 2.5%
of revenues for the prior six month period ending September 30, 1994. The
increase in interest expense of 3.6% reflects the higher rates prevailing in
the first fiscal quarter as compared to the prior year.
Depreciation and amortization of $132,900 or 7.1% was reported for the six
months ended September 30, 1995 as compared to $134,400 or 5.1% of revenues for
the prior six month period ending September 30, 1994. This expense as a
percentage of revenues increased as a result of decreased revenues as well as
an increase in the acquisition of machinery and equipment during the six month
period ended September 30, 1995.
The Company reported a net loss of $160,981 for the six month period ended
September 30, 1995, representing a loss of $.07 per common share as compared to
net income of $.002 per common share for the six months ended September 30,
1994. This comparative increase for the three month periods is due to an
overall decrease in revenues during this period.
-12-
<PAGE> 15
ITEM 2- MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
RESULTS OF OPERATIONS:
The following table sets forth for the periods indicated, sales
revenues and percentages for certain items in the financial data as
such items bear to the revenues of the Company:
<TABLE>
<CAPTION>
Three Months Ended
---------------------------------
September 30, September 30,
1995 1994
------------- -------------
<S> <C> <C>
Revenues, net sales(in thousands) $ 839 $ 1,332
-------- --------
Costs and Expenses:
(as a percentage of revenues)
Cost of products sold 79.1% 75.7%
Selling,general and administrative 17.1% 16.6%
Interest expense 3.8% 2.8%
Depreciation and amortization 7.9% 5.0%
-------- --------
Total costs and expenses 107.9% 100.1%
-------- --------
Income (loss) before income taxes (7.9%) (.1%)
-------- --------
Provision for income taxes (.8%) .5%
-------- --------
Net income (loss) (8.7%) (.6%)
======== ========
</TABLE>
COMPARATIVE ANALYSIS:
Operating revenues for the three month period ending September 30, 1995 amounted
to $838,839 reflecting a 37% decrease versus the prior three month period
ending September 30, 1994 of $1,332,067. The decrease in revenues in this
comparative period reflects a continued decrease in governmental and military
procurement and the Company's efforts to redirect its sales efforts to
commercial electronic sales.
-13-
<PAGE> 16
COMPARATIVE ANALYSIS (continued)
Cost of products sold amounted to $663,885 for the three months ended September
30, 1995, or 79.1% of revenues. This reflected a decrease of 34.2% in the cost
of products sold from $1,008,789 or 75.7% of revenues from the comparative
three month period ended September 30, 1994. This decrease is primarily due to
the decrease in revenues as a result of decreased governmental and military
procurement.
Selling, general and administrative expenses were $142,968 or 17.1% of
revenues, compared to $221,191 or 16.6% of revenues for the comparative three
month period ending September 30, 1994. This decrease of 35.4% was attributed
to certain fixed costs remaining constant despite a decline in sales during
this period.
Interest expense was $32,277 or 3.8% of revenues as compared to $37,019 or 2.8%
of revenues for the prior three month period ending September 30, 1994. The
decrease in interest expense of 12.8% reflects the decrease in interest rates
in fiscal 1995 as compared to the prior year.
Depreciation and amortization of $66,450 or 7.9% was reported for the three
months ended September 30, 1995 as compared to $66,750 or 5.0% of revenues for
the prior three month period ending September 30, 1994. This expense as a
percentage of revenues increased as a result of decreased revenues as well as
an increase in the acquisition of machinery and equipment during the three month
period ended September 30, 1995.
The Company reported a net loss of $73,041 for the three month period ended
September 30, 1995, representing a loss of $.03 per common share as compared to
a net loss of $.01 per common share for the three months ended September 30,
1994. This comparative increase for the three month periods is due to an
overall decrease in revenues during this period.
-14-
<PAGE> 17
Item 6. Exhibits and Reports on Form 8-K
Exhibit 27. Financial Data Schedule
SIGNATURES
In accordance with the requirements of the Exchange Act, the
Registrant has duly cause this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
IEH CORPORATION
(Registrant)
November 9, 1995 s/Michael Offerman
------------------
Michael Offerman
President
November 9, 1995 s/Robert Knoth
------------------
Robert Knoth
Chief Financial Officer
15
<PAGE> 18
EXHIBIT INDEX
Exhibit 27. Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM (A) SEC FORM
10 Q-SB FOR THE QUARTER ENDED SEPTEMBER 30, 1995
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-START> JUL-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 300
<SECURITIES> 0
<RECEIVABLES> 639,177
<ALLOWANCES> 10,062
<INVENTORY> 986,934
<CURRENT-ASSETS> 1,764,283
<PP&E> 6,433,569
<DEPRECIATION> 4,837,180
<TOTAL-ASSETS> 3,569,581
<CURRENT-LIABILITIES> 1,971,115
<BONDS> 323,662
<COMMON> 1,151,751
0
0
<OTHER-SE> 1,615,874
<TOTAL-LIABILITY-AND-EQUITY> 3,569,581
<SALES> 1,870,487
<TOTAL-REVENUES> 1,870,487
<CGS> 1,474,929
<TOTAL-COSTS> 1,474,929
<OTHER-EXPENSES> 473,946
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 69,993
<INCOME-PRETAX> (148,381)
<INCOME-TAX> 12,600
<INCOME-CONTINUING> (160,981)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (160,981)
<EPS-PRIMARY> (.07)
<EPS-DILUTED> (.07)
</TABLE>
