FORM 10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
{X} QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Quarterly Period ended March 31, 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 0-5896
JACO ELECTRONICS, INC.
(Exact name of registrant as specified in its charter)
NEW YORK 11-1978958
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
145 OSER AVENUE, HAUPPAUGE, NEW YORK 11788
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code: (516) 273-5500
Indicated 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 report), and (2) has been subject to such
filing requirements for the past 90 days.
YES X NO __
Number of Shares of Registrant's Common Stock Outstanding as of May 12, 1998 -
3,975,721 (Excluding 199,500 Shares of Treasury Stock and 90,000 Shares of
Restricted Stock).
<PAGE>
FORM 10-Q March 31, 1998
Page 2
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
JACO ELECTRONICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
March 31, June 30,
1998 1997
-------------- -------------
ASSETS
Current Assets
<S> <C> <C>
Cash $ 285,741 $ 463,352
Marketable securities 764,359 627,179
Accounts receivable - net 22,728,887 22,008,210
Inventories 36,195,836 33,311,201
Prepaid expenses and other 1,449,354 1,359,617
Prepaid income taxes 299,937 528,243
Deferred income taxes 897,000 750,000
----------- -----------
Total current assets 62,621,114 59,047,802
Property, plant and equipment - net 5,663,763 5,009,045
Deferred income taxes 282,000 244,000
Excess of cost over net assets acquired 4,001,615 4,151,574
Other assets 1,614,331 1,543,257
----------- -----------
$74,182,823 $69,995,678
=========== ===========
</TABLE>
See accompanying notes to condensed consolidated financial statements.
<PAGE>
FORM 10-Q March 31, 1998
Page 3
<TABLE>
<CAPTION>
JACO ELECTRONICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
March 31, June 30,
1998 1997
------------ ------------
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities
<S> <C> <C>
Accounts payable and accrued expenses $ 19,703,465 $ 17,302,127
Current maturities of long term debt and
capitalized lease obligations 681,930 599,239
------------- ------------
Total current liabilities 20,385,395 17,901,366
Long term debt and capitalized lease obligations 16,606,446 15,552,549
Deferred compensation 687,500 650,000
SHAREHOLDERS' EQUITY
Preferred stock - authorized, 100,000 shares,
$10 par value; none issued
Common stock - authorized 10,000,000 shares,
$.10 par value; issued 4,065,721 and 3,975,721
shares respectively, and 3,866,221 and 3,888,221
shares outstanding, respectively 406,572 397,572
Additional paid-in capital 22,334,420 22,180,295
Unrealized gain on marketable securities 164,684 120,200
Retained earnings 15,017,768 13,893,696
Treasury stock (1,419,962) (700,000)
------------ ------------
Total shareholders' equity 36,503,482 35,891,763
---------- ----------
$74,182,823 $69,995,678
=========== ===========
</TABLE>
See accompanying notes to condensed consolidated financial statements.
<PAGE>
FORM 10-Q March 31, 1998
Page 4
<TABLE>
<CAPTION>
JACO ELECTRONICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE MONTHS ENDED MARCH 31,
(UNAUDITED)
1998 1997
----------- ----------
<S> <C> <C>
NET SALES $38,334,936 $38,661,610
----------- -----------
COST AND EXPENSES
Cost of goods sold 30,421,293 30,798,265
---------- ----------
Gross profit 7,913,643 7,863,345
Selling, general and administrative expenses 7,190,963 7,012,577
------------ ------------
Operating profit 722,680 850,768
Interest expense 280,821 266,430
------------ ------------
Earnings before income taxes 441,859 584,338
Income tax provision 179,000 237,000
------------ ------------
NET EARNINGS $ 262,859 $ 347,338
============ ============
Net earnings per common share
Basic and diluted $ 0.07 $ 0.09
============ ============
Weighted average common shares outstanding
Basic 3,798,010 3,888,221
Diluted 3,920,838 3,937,253
============ ============
</TABLE>
See accompanying notes to condensed consolidated financial statements.
<PAGE>
FORM 10-Q March 31, 1998
Page 5
<TABLE>
<CAPTION>
JACO ELECTRONICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE NINE MONTHS ENDED MARCH 31,
(UNAUDITED)
1998 1997
-------------- ------------
<S> <C> <C>
NET SALES $115,001,364 $115,178,339
COST AND EXPENSES
Cost of goods sold 91,071,936 91,187,699
---------- ----------
Gross profit 23,929,428 23,990,640
Selling, general and administrative expenses 21,217,183 20,366,027
---------- ----------
Operating profit 2,712,245 3,624,613
Interest expense 823,173 672,353
----------- ------------
Earnings before income taxes 1,889,072 2,952,260
Income tax provision 765,000 1,196,000
------------ ------------
NET EARNINGS $1,124,072 $1,756,260
========== ==========
Net earnings per common share
Basic $ 0.29 $ 0.45
Diluted $ 0.29 $ 0.44
============== ==============
Weighted average common shares outstanding
Basic 3,856,787 3,902,783
Diluted 3,932,061 3,953,384
========= =========
</TABLE>
See accompanying notes to condensed consolidated financial statements.
<PAGE>
FORM 10-Q March 31, 1998
Page 6
<TABLE>
<CAPTION>
JACO ELECTRONICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES
IN SHAREHOLDERS' EQUITY
FOR THE NINE MONTHS ENDED MARCH 31, 1998
(UNAUDITED)
Unrealized
Additional Gain on
Common Stock Paid-In Marketable Retained Treasury
Shares Amount Capital Securities Earnings Stock
--------------- ------------- ----------------- --------------- ----------------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at July 1, 1997 3,975,721 $ 397,572 $ 22,180,295 $ 120,200 $ 13,893,696 $ (700,000)
Issuance of restricted stock 90,000 9,000 621,000
Deferred compensation expense
Purchase of treasury stock (719,962)
Unrealized gain on marketable
securities - net 44,484
Net earnings 1,124,072
--------------- ------------- ----------------- --------------- ----------------- --------------
Balance at March 31, 1998 4,065,721 $ 406,572 $ 22,801,295 $ 164,684 $ 15,017,768 $ (1,419,962)
=============== ============= ================= =============== ================= ===============
Total
Deferred Shareholders'
Compensation Equity
--------------- -------------
<S> <C> <C> <C>
Balance at July 1, 1997 $ 35,891,763
Issuance of restricted stock $ (540,000) 90,000
Deferred compensation expense 73,125 73,125
Purchase of treasury stock (719,962)
Unrealized gain on marketable
securities - net 44,484
Net earnings 1,124,072
--------------- -------------
Balance at March 31, 1998 $ (466,875) $ 36,503,482
=============== =============
</TABLE>
See accompanying notes to condensed consolidated financial statements.
<PAGE>
FORM 10-Q March 31, 1998
Page 7
<TABLE>
<CAPTION>
JACO ELECTRONICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED MARCH 31,
(UNAUDITED)
1998 1997
----------------- -----------------
Cash flows from operating activities
<S> <C> <C>
Net earnings $ 1,124,072 $ 1,756,260
Adjustments to reconcile net earnings to net
cash provided by (used in)operating activities
Depreciation and amortization 993,183 737,898
Deferred compensation 110,625 37,500
Deferred income tax benefit (215,000) (141,000)
Gain on sale of equipment (10,094)
Provision for doubtful accounts 364,965 220,206
Changes in operating assets and liabilities, net
of effect of acquisitions
Increase in operating assets - net (3,741,708) (1,847,191)
Increase (decrease) in operating liabilities - net 2,401,338 (574,142)
----------------- -----------------
Net cash provided by operating activities 1,037,475 179,437
----------------- -----------------
Cash flows from investing activities
Capital expenditures (783,323) (682,586)
Proceeds from sale of equipment 36,683
Business acquisitions - net (4,694,519)
Increase in marketable securities - net (62,696)
Increase in other assets (171,073) (218,449)
----------------- -----------------
Net cash used in investing activities (1,017,092) (5,558,871)
----------------- -----------------
Cash flows from financing activities
Borrowings under line of credit 112,863,510 118,419,608
Payments under line of credit (111,670,859) (111,773,984)
Principal payments under equipment financing
and term loans (670,683) (375,054)
Purchase of treasury stock (719,962) (700,000)
----------------- -----------------
Net cash (used in) provided by financing activities (197,994) 5,570,570
----------------- -----------------
NET (DECREASE) INCREASE IN CASH (177,611) 191,136
----------------- -----------------
Cash at beginning of period 463,352 164,161
----------------- -----------------
Cash at end of period $ 285,741 $ 355,297
================= =================
Supplemental schedule of non-cash financing and investing activities
Equipment under capital leases $ 614,620 $ 355,824
</TABLE>
See accompanying notes to condensed consolidated financial statements.
<PAGE>
FORM 10-Q March 31, 1998
Page 8
JACO ELECTRONICS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE A - BASIS OF PRESENTATION
1) The accompanying condensed consolidated financial statements reflect all
adjustments, consisting only of normal recurring accrual adjustments, which
are in the opinion of management, necessary for a fair presentation of the
consolidated financial position and the results of operations at and for
the periods presented. Such financial statements do not include all the
information or footnotes necessary for a complete presentation. Therefore,
they should be read in conjunction with the Company's audited consolidated
statements for the year ended June 30, 1997 and the notes thereto included
in the Company's annual report on Form 10-K. The results of operations for
the interim periods are not necessarily indicative of the results for the
entire year.
2) The Company has a $30,000,000 term loan and revolving line of credit
facility with its banks, which are based principally on eligible accounts
receivables and inventories as defined in the agreement. The agreement was
amended to (i) extend the maturity date to September 13, 2000, (ii) change
the interest rate to a rate based on the average 30 day LIBOR rate plus
3/4% to 1 1/4% depending on the Company's performance measured by a
financial ratio effective January 1, 1998 and (iii) changed the
requirements of certain financial covenants. The applicable interest rate
may be adjusted quarterly and borrowings under this facility are
collateralized by substantially all of the assets of the Company.
3) The Board of Directors of the Company has authorized the purchase of up to
250,000 shares of its outstanding common stock under a stock repurchase
program. The purchases may be made by the Company from time to time on the
open market. The Company has made purchases of 199,500 shares of its common
stock as of May 12, 1998 for aggregate consideration of $1,419,962.
4) For interim financial reporting purposes, the Company uses the gross profit
method for computing inventories, which consists of goods held for resale.
5) In February 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 128, "Earnings Per Share," which is
effective for financial statements for both interim and annual periods
ending after December 15, 1997. The new standard eliminates primary and
fully diluted earnings per share and requires presentation of basic and
diluted earnings per share together with disclosure of how the per share
amounts were computed. The Company has adopted this standard and has
restated its earnings per share for prior periods presented.
<PAGE>
FORM 10-Q March 31, 1998
Page 9
<TABLE>
<CAPTION>
The number of shares used in the Company's basic and diluted earnings
per share computations are as follows
Three Months Ended Nine Months Ended
March 31, March 31,
------------------------- ------------------------
1998 1997 1998 1997
----------- ----------- ----------- ------------
Weighted average common shares
outstanding net of treasury shares,
<S> <C> <C> <C> <C>
for basic earnings per share 3,798,010 3,888,221 3,856,787 3,902,783
Common stock equivalents for
stock options and restricted stock 122,828 49,032 75,274 50,601
----------- ----------- ----------- -----------
Weighted average common shares
outstanding for diluted earnings per share 3,920,838 3,937,253 3,932,061 3,953,384
========= ========= ========= =========
</TABLE>
6) During August 1996, and January 1997, the Company purchased QPS
Electronics, Inc. and Corona Electronics, Inc., respectively, both of which
are electronic component distributors. Aggregate consideration paid for the
acquisitions approximated $4,700,000 of which $157,500 was paid through the
issuance of 20,000 shares of the Company's common stock. These acquisitions
have been accounted for by the purchase method and, as such, the fair value
of the assets and liabilities acquired have been recorded on the date of
the respective acquisitions. The respective results of their operations are
included with those of the Company from the date of acquisition. The excess
of the purchase price, over the fair value of the assets acquired,
approximately $3,053,000, is being amortized using the straight-line method
over a period of twenty years. Pro forma historical results of operations
are not presented, as such results would not be materially different from
the historical results of the Company.
7) In December 1997, the shareholders' of the Company approved an amendment to
the Company's 1993 Non-Qualified Stock Option Plan, (the "Plan") to increase the
aggregate number of shares of common stock which may be issued upon exercise of
all options granted under the Plan from 293,000 shares to 600,000 shares.
Additionally, the shareholders' approved the adoption of the Jaco Electronics,
Inc. Restricted Stock Plan (the "Restricted Stock Plan"). The Restricted Stock
Plan, enables the Board of Directors or Plan Committee to have sole discretion
and authority to determine who may purchase restricted stock, the number of
shares, the price to be paid and the restrictions placed upon the stock.
Pursuant to the Restricted Stock Plan, the Board of Directors has authorized the
purchase of 90,000 shares of the Company's common stock by certain employees at
a purchase price of $1.00 per share. Shares purchased are subject to a four-year
vesting period.
<PAGE>
FORM 10-Q March 31, 1998
Page 10
JACO ELECTRONICS, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Statements in this filing, and elsewhere, which look forward in time involve
risks and uncertainties which may effect the actual results of operations. The
following important factors, among others, have affected and, in the future,
could affect the Company's actual results: dependence on a limited number of
suppliers for products which generate a significant portion of the Company's
sales, the effect upon the Company of increases in tariffs or duties, changes in
trade treaties, strikes or delays in air or sea transportation and possible
future United States legislation with respect to pricing and/or import quotas on
products imported from foreign countries, and general economic effect upon
manufacturers, end users of electronic components and electronic component
distributors.
GENERAL
Jaco is a distributor of electronic components and provider of contract
manufacturing and value-added services. Products distributed by Jaco include
semiconductors, capacitors, resistors, electromechanical devices, flat panel
displays (FPD's) and power supplies used in the assembly and manufacturing of
electronic equipment.
The Company's customers are primarily small and medium sized manufacturers. The
trend for these customers has been to shift certain manufacturing functions to
third parties (outsourcing). The Company intends to seek to capitalize on this
trend toward outsourcing by increasing sales of products enhanced by value-added
services. Value-added services currently provided by Jaco consist of configuring
complete computer systems to customer specifications both in tower and desktop
configurations, kitting (e.g. supplying sets of specified quantities of products
to a customer that are prepackaged for ease of feeding the customer's production
lines), automated inventory management services and contract manufacturing
services through the Company's wholly-owned subsidiary, Nexus Custom
Electronics, Inc.
<PAGE>
FORM 10-Q March 31, 1998
Page 11
Results of Operations
The following table sets forth certain items in the Company's statement of
earnings as a percentage of net sales for the periods shown; <TABLE> <CAPTION>
Three Months Ended Nine Months Ended
March 31, March 31,
-------------------------------- ----------------------------------
1998 1997 1998 1997
------------- -------------- --------------- ---------------
<S> <C> <C> <C> <C>
Net Sales 100.0% 100.0% 100.0% 100.0%
Cost of goods sold 79.4 79.7 79.2 79.2
------------- -------------- --------------- ---------------
Gross profit 20.6 20.3 20.8 20.8
Selling, general and
administrative expenses 18.7 18.1 18.4 17.7
------------- -------------- --------------- ---------------
Operating profit 1.9 2.2 2.4 3.1
Interest expense 0.7 0.7 0.7 0.6
------------- -------------- --------------- ---------------
Earnings before income taxes 1.2 1.5 1.7 2.5
Income tax provisions 0.5 0.6 0.7 1.0
------------- -------------- --------------- ---------------
NET EARNINGS 0.7% 0.9% 1.0% 1.5%
============= ============== =============== ===============
</TABLE>
COMPARISON OF THE THREE AND NINE MONTHS ENDED MARCH 31, 1998 AND MARCH 31, 1997
- --------------------------------------------------------------------------------
Net sales for the third quarter and nine months ended March 31, 1998 were $38.3
million and $115.0 million as compared to $38.7 million and $115.2 million for
the three and nine months ended March 31, 1997. This represented a .8% and .2%
decrease in net sales, respectively. The decrease in net sales was primarily the
result of an industry wide reduction in component pricing.
<PAGE>
FORM 10-Q March 31, 1998
Page 12
While the Company continues to sell more components than in previous quarters
and has added new franchises that has begun to result in additional sales, this
was offset by the component price decreases. The Company believes that the
recent addition of new suppliers, the expansion of it's flat panel display
product lines, the addition of several field application engineers and the
continued expansion and enhancement of it's semiconductor group will result in
an increase in sales as market conditions improve.
Gross profit margins for the three and nine months ended March 31, 1998 were
20.6% and 20.8% as compared to 20.3% and 20.8% for the comparable periods of the
prior fiscal year. The Company experienced a slight increase in gross margin for
the three months while remaining constant for the nine months. The Company has
been able to maintain these margins even though there has been a significant
decrease in component pricing by carefully reviewing the purchasing of these
components and the profitability of sales opportunities that arise. The Company
cannot give any assurances that this trend will continue in future periods.
Selling, general and administrative (SG&A) expenses were $7.2 million and $21.2
million for the three and nine months ended March 31, 1998, compared to $7.0
million and $20.4 million last year. The additional costs incurred were due to
the acquisition of Corona Electronics, Inc. ("Corona") during January 1997, the
addition of field application engineers, and the expansion of the flat panel
marketing and semiconductor groups. These increases were partially offset during
the quarter and nine months by management's efforts to reduce costs in non-core
personnel and administrative expenditures. Interest expense increased slightly
to $281,000 this quarter compared to $266,000 last year. The minimal increase
was attributable to the cash outlay, due to the acquisition of Corona that was
completed during the third quarter last year. Net earnings for the three months
ended March 31, 1998 was $263,000, or $.07 per share diluted, as compared to
$347,000, or $.09 per share diluted for the three months ended March 31, 1997.
Net earnings for the nine months ended March 31, 1998 was $1,124,000, or $.29
per share diluted, as compared to $1,756,000, or $.44 per share diluted for the
comparable period last year. The decrease in net earnings was attributable to
flat sales and an increase in SG&A expenses incurred in expanding the
semiconductor and flat-panel display groups, the field application engineer
program and the acquisition of Corona.
LIQUIDITY AND CAPITAL RESOURCES
The Company has a $30,000,000 term loan and revolving line of credit facility
with its banks, which are based principally on eligible accounts receivables and
inventories as defined in the agreement. The agreement was amended to (i) extend
the maturity date to September 13, 2000, (ii) change the interest rate to a rate
based on the average 30 day LIBOR rate plus 3/4 % to 1 1/4% depending on the
Company's performance measured by a financial ratio effective January 1, 1998
and (iii) changed the requirements of certain financial covenants. The
applicable interest rate may be adjusted quarterly and borrowings under this
facility are collateralized by substantially all of the assets of the Company.
<PAGE>
FORM 10-Q March 31, 1998
Page 13
The outstanding balance on the revolving line of credit facility was $15,176,169
at March 31, 1998. The term loan, with a remaining balance of $642,857 at March
31, 1998 requires monthly principal payments of $17,857, together with interest
through September 13, 2000, with a final payment of $107,147 on September 13,
2000. The agreement contains provisions for maintenance of certain financial
ratios, all of which the Company believes it is in compliance with at March 31,
1998, and prohibits the payment of cash dividends.
For the nine months ended March 31, 1998 the Company's net cash provided by
operating activities was $1,037,000 as compared to net cash provided by
operating activities of $179,000 for the nine months ended March 31, 1997. Net
cash used in investing activities decreased to $1,017,000 for the first nine
months of fiscal 1998, as compared to $5,559,000 for the first nine months of
fiscal 1997. The acquisition of QPS Electronics, Inc. and Corona during fiscal
1997 required approximately $4,700,000, which was financed substantially through
additional borrowings from the Company's revolving line of credit. The Company's
cash expenditures may vary significantly from current levels, based on a number
of factors, including, but not limited to, future acquisitions, if any.
On April 15, 1996, the Company's Board of Directors authorized the purchase of
up to 250,000 shares of its common stock under a stock repurchase program.
During fiscal 1998, the Company repurchased 112,000 shares at an average market
price of $6.43 per share. As of May 12, 1998, in the aggregate, the Company has
repurchased 199,500 shares at an average market price of $7.12 per share.
The year 2000 data management issue, which has received wide spread publicity,
is not expected to have a material impact on the Company.
For the first nine months of fiscal 1998 and fiscal 1997 inventory turnover was
3.5x and 3.9x, respectively. The average days outstanding of the Company's
accounts receivable at March 31, 1998 was 53 days, as compared to 55 days at
March 31, 1997. The Company has not experienced any significant trade collection
difficulties during fiscal 1998.
The Company believes that cash flow from operations and funds available under
its credit facility will be sufficient to fund the Company's capital needs for
at least the next twelve months.
INFLATION
Inflation has not had a significant impact on the Company's operations during
the last three fiscal years.
<PAGE>
FORM 10-Q March 31, 1998
Page 14
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
Nothing to Report
Item 2. Changes in Securities and Use of Proceeds
Nothing to Report
Item 3. Defaults Upon Senior Securities
Nothing to Report
Item 4. Submission of Matters to a Vote of Security Holders
Nothing to Report
Item 5. Other Information
Nothing to Report
Item 6. Exhibits and Reports on Form 8-K
a) Exhibits
27. Financial Data Schedule
b) Reports on Form 8-K None
<PAGE>
S I G N A T U R E
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.
JACO ELECTRONICS, INC.
(Registrant)
BY: /s/ Jeffrey D. Gash
Jeffrey D. Gash, Vice President/Finance
(Principal Financial Officer)
DATED: May 15, 1998
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted form the
unaudited condensed consolidated balance sheet as of March 31, 1998
and the unaudited condensed consolidated statement of earnings for the
nine months ended March 31, 1998 and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-START> JUL-01-1997
<PERIOD-END> MAR-31-1998
<CASH> 285,741
<SECURITIES> 764,359
<RECEIVABLES> 23,847,448
<ALLOWANCES> 1,118,561
<INVENTORY> 36,195,836
<CURRENT-ASSETS> 62,621,114
<PP&E> 8,734,386
<DEPRECIATION> 3,070,623
<TOTAL-ASSETS> 74,182,823
<CURRENT-LIABILITIES> 20,385,395
<BONDS> 17,293,946
0
0
<COMMON> 406,572
<OTHER-SE> 36,096,910
<TOTAL-LIABILITY-AND-EQUITY> 74,182,823
<SALES> 115,001,364
<TOTAL-REVENUES> 115,001,364
<CGS> 91,071,936
<TOTAL-COSTS> 91,071,936
<OTHER-EXPENSES> 21,217,183
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 823,173
<INCOME-PRETAX> 1,889,072
<INCOME-TAX> 765,000
<INCOME-CONTINUING> 1,124,072
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,124,072
<EPS-PRIMARY> 0.29
<EPS-DILUTED> 0.29
</TABLE>
