<PAGE> 1
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
X Quarterly Report Under Section 13 or 15 (d) of the Securities Exchange
--- Act of 1934
For Quarter Ended March 31, 1995 Commission File No. 1-10594
H. W. KAUFMAN FINANCIAL GROUP, INC.
-----------------------------------
(exact name of registrant as specified in its charter)
Michigan 38-1903339
------------------------ ---------------------
(State of Incorporation) (I.R.S. Employer
Identification No.)
30833 NORTHWESTERN HIGHWAY
SUITE 220
FARMINGTON HILLS, MI 48334
- ----------------------------------------- -----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (810) 932-9000
Indicated by a check mark whether the registrant (1) has filed all reports
required 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
--- ---
As of April 25, 1995 there were 3,123,137 shares of Common Stock outstanding.
The aggregate market value of the voting stock held by non-affiliates (604,316
shares) based upon the closing price of such stock on the American Stock
Exchange on April 25, 1995 was approximately $3,323,738.
As of March 31, 1995 there were 3,123,137 shares of Common Stock at a par value
of $.0025 per share issued and outstanding.
Documents Incorporated by Reference
-----------------------------------
NONE
<PAGE> 2
H. W. KAUFMAN FINANCIAL GROUP, INC.
FORM 10-Q
TABLE OF CONTENTS
PAGE NUMBER
---- ------
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
Consolidated Balance Sheets at 2 - 3
March 31, 1995 and December 31, 1994
Consolidated Statements of Income for
the three months ended March 31, 1995
and 1994 4
Consolidated Statements of Cash Flows for
the three months ended March 31, 1995
and 1994. 5 - 6
ITEM 2. Management's Discussion and Analysis of
Financial Condition and Consolidated
Results of Operations 7 - 12
PART II. OTHER INFORMATION
ITEM 5. Other Information 13
<PAGE> 3
PART I - FINANCIAL INFORMATION
Item 1. - Financial Statements
The consolidated Financial Statements included herewith have been prepared by
the Company, without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote
disclosures normally included in the Consolidated Financial Statements prepared
in accordance with generally accepted accounting principles have been condensed
or omitted pursuant to such rules and regulations, although the Company
believes that the disclosures are adequate to make the information presented
not misleading.
In the opinion of the Company's Management, the Financial Statements for three
months ended March 31, 1995 and 1994 reflect all adjustments for normal
recurring accruals which are necessary to present a fair statement of the
results for the period then ended. It is suggested that these Financial
Statements be read in conjunction with the audited, consolidated Financial
Statements and notes thereto submitted in the Company's Form 10-K filing for
the year ended December 31, 1994.
The results for the three months ended March 31, 1995, are not necessarily
indicative of the results of the entire year of 1995.
On April 17, 1995, the Company reported a 10% Stock Dividend payable to
shareholders of record as of May 1, 1995. Approximately 311,977 additional
shares of Common Stock will be issued. These transactions will be treated for
accounting purposes as stock splits effected in the form of dividends. The
weighted average number of shares outstanding on the Consolidated Statements of
Income only, have been adjusted to reflect the May 1, 1995 Stock Dividend.
-1-
<PAGE> 4
H. W. KAUFMAN FINANCIAL GROUP, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, December 31,*
1995 1994
----------- -------------
ASSETS
------
<S> <C> <C>
CURRENT:
Cash and cash equivalents $ 8,531,644 $10,370,260
Marketable securities,
market value, Available-for-sale 4,242,742 3,983,853
Receivables:
Trade 23,477,556 23,575,263
Notes 2,897,740 2,456,921
Other 37,080 107,194
Prepaid expenses and other current
assets 916,591 1,000,589
----------- -----------
TOTAL CURRENT ASSETS 40,103,353 41,494,080
----------- -----------
IMPROVEMENTS AND EQUIPMENT:
Furniture, fixtures and equipment 3,621,771 3,319,261
Improvements to leased premises 588,520 583,043
----------- -----------
4,210,291 3,902,304
Less accumulated depreciation and
amortization (1,883,189) (1,689,590)
----------- -----------
NET IMPROVEMENTS AND EQUIPMENT 2,327,102 2,212,714
----------- -----------
OTHER ASSETS:
Goodwill, net of accumulated
amortization of $1,415,789
and $1,338,408 1,499,255 1,481,636
Covenants not to compete, net of
accumulated amortization of
$459,983 and $418,892 429,017 174,108
Other intangible assets, net of
accumulated amortization of
$947,904 and $819,106 2,522,050 1,692,848
Miscellaneous 946,696 849,047
----------- -----------
TOTAL OTHER ASSETS 5,397,018 4,197,639
----------- -----------
$47,827,473 $47,904,433
=========== ===========
</TABLE>
* Condensed from the 1994 Audited Financial Statements
-2-
<PAGE> 5
H. W. KAUFMAN FINANCIAL GROUP, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, December 31,*
LIABILITIES AND STOCKHOLDERS' EQUITY 1995 1994
- ----------- --- ------------- ------ ----------- -----------
<S> <C> <C>
CURRENT LIABILITIES:
Accounts payable:
Insurance companies $30,757,597 $31,559,820
Customer advance payments 2,628,123 2,137,937
Other 650,620 598,603
Accruals:
Taxes, other than on income 1,543,378 2,566,699
Compensation 868,623 2,097,202
Other 468,237 210,666
Dividend Payable 562,165 -0-
Current portion of long-term debt 1,100,000 425,000
----------- -----------
TOTAL CURRENT LIABILITIES 38,578,743 39,595,927
NOTE PAYABLE - LONGTERM DEBT 475,000 425,000
----------- -----------
TOTAL LIABILITIES 39,053,743 40,020,927
DEFERRED REVENUE 2,266,501 1,115,132
STOCKHOLDERS' EQUITY:
Common stock, $.0025 par - 7,500,000
shares authorized; 3,123,043
outstanding in 1995 and 3,123,043
outstanding in 1994 7,808 7,808
Additional paid-in capital 501,509 501,509
Retained earnings 5,951,089 6,357,825
Securities valuation 46,823 (98,768)
----------- ----------
TOTAL STOCKHOLDERS' EQUITY 6,507,229 6,768,374
----------- -----------
$47,827,473 $47,904,433
=========== ===========
</TABLE>
* Condensed from the 1994 Audited Financial Statements
-3-
<PAGE> 6
H. W. KAUFMAN FINANCIAL GROUP INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
1995 1994
----------- -----------
<S> <C> <C>
COMMISSIONS AND FEES $13,355,797 $12,261,510
COST OF COMMISSIONS AND FEES 5,750,676 5,467,569
----------- -----------
Gross profit 7,605,121 6,793,941
----------- -----------
DIVISIONAL OPERATING EXPENSES 5,529,814 5,011,630
GENERAL & ADMINISTRATIVE 1,747,020 1,593,970
----------- -----------
Total operating expenses 7,276,834 6,605,600
----------- -----------
Operating income 328,287 188,341
OTHER INCOME 184,936 109,535
----------- -----------
Income before taxes
on income 513,223 297,876
TAXES ON INCOME 357,792 205,000
----------- -----------
NET INCOME $ 155,431 $ 92,876
=========== ===========
EARNINGS PER SHARE:
NET INCOME $ .05 $ .03
=========== ===========
*WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING 3,435,347 3,424,961
</TABLE>
Interim results are not necessarily indicative of the results of operations for
a full year.
*See page one
-4-
<PAGE> 7
H. W. KAUFMAN FINANCIAL GROUP, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
1995 1994
---------- ----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 155,431 $ 92,876
Adjustments to reconcile net income
to net cash provided (used) by
operating activities:
Depreciation expense 193,599 107,634
Amortization of intangible assets 247,270 248,345
Deferred income taxes ( 77,392) 21,001
Decrease (increase) in accounts
receivable ( 272,998) (2,929,922)
Decrease (increase) in prepaid
expenses and other current assets 64,330 171,020
Decrease (increase) in miscellaneous
assets ( 97,649) 97,437
Increase (decrease) in accounts
payable ( 260,023) 1,874,989
Increase (decrease) in accrued
expenses (1,994,328) (2,244,043)
Increase (decrease) in deferred
revenue 1,151,369 1,115,132
Gain on the sale of marketable
securities -0- ( 2,538)
Abandonment of leasehold improvements -0- 23,678
---------- ------------
Net cash provided (used) by
operating activities ( 890,391) (1,424,391)
---------- ------------
CASH FLOWS FROM INVESTING ACTIVITIES;
Proceeds from the sale of marketable
securities -0- 52,538
Purchase of marketable securities ( 16,238) (134,016)
Purchase of books of business (199,000) (349,000)
Purchase of improvements and equipment (307,987) (504,509)
----------- ----------
Net cash provided (used) by
investing activities (523,225) (934,987)
---------- ----------
</TABLE>
-5-
<PAGE> 8
H. W. KAUFMAN FINANCIAL GROUP, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Concluded)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
1995 1994
--------- -----------
<S> <C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from incentive stock options -0- 3,247
Dividends paid -0- (509,459)
Reduction of long-term debt ( 425,000) -0-
------------ -----------
Net cash provided (used) by
financing activities ( 425,000) (506,212)
------------ -----------
NET INCREASE (DECREASE) IN CASH EQUIVALENTS (1,838,616) (2,865,590)
CASH AND CASH EQUIVALENTS,
beginning of year 10,370,260 9,296,749
------------ -----------
CASH AND CASH EQUIVALENTS,
end of period $8,531,644 $6,431,159
========== ==========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION:
Cash paid during the quarter for:
Income taxes $ -0- $ 330,000
Interest $ 1,044 $ -0-
</TABLE>
-6-
<PAGE> 9
PART I - FINANCIAL INFORMATION
Item 2 - Management's Discussion and Analysis of Financial Condition
and Consolidated Results of Operations
Liquidity and Capital Resources
On March 31, 1995, the Company's financial condition reflected working capital
of $1,524,610, a tangible net worth of $2,056,907 and stockholders' equity of
$5,951,089. This compares to a working capital of $1,433,875, a tangible net
worth of $1,264,212, and stockholders' equity of $5,209,884, at March 31, 1994.
During the past year, the Company had increased profits and received an
additional $1,151,000 in Deferred Revenue. Working Capital remained relatively
unchanged from March 31, 1995 compared to March 31, 1994. This was due to
expenditures for Books of Business of $923,000. The Company has also spent
additional funds in expanding its corporate-wide computer network.
Listed below are some important figures relating to the March 31, 1995
financials with their 1994 counterparts.
<TABLE>
<CAPTION>
MARCH 31,
Description 1995 1994
- ----------- ---- ----
<S> <C> <C>
Total Current Assets $40,103,353 $36,413,838
Total Assets 47,827,473 42,628,792
Total Current Liabilities 38,578,743 34,979,963
Total Liabilities 39,053,743 35,404,963
Retained Earnings 5,951,089 4,684,800
Total Stockholders' Equity 6,507,229 5,209,884
Gross Profit 7,605,121 6,793,941
Net Income before Taxes 513,223 297,876
Net Income after Taxes 155,431 92,876
Net Income per Share $.05 $.03
</TABLE>
-7-
<PAGE> 10
PART I - FINANCIAL INFORMATION
Item 2 - Management's Discussion and Analysis of Financial Condition
and Consolidated Results of Operations (continued)
Results of Operations
The designations "Commission and Fees" on the Consolidated Statements of Income
consist of three components, (1) commissions, (2) fees and (3) profit-sharing
commissions and volume bonuses.
"Commissions" are amounts earned by the Company and are equal to a percentage
ranging from approximately 15% to 22% of the premiums invoiced under
insurance coverage placed by the Company. Commissions are paid by the insurance
carriers that have placed insurance coverages through the Company. Commissions
are somewhat lower when the Company is acting as an insurance broker as
compared to when the Company is acting as an insurance agent under a general
agency agreement with an insurance carrier. Insurance carriers can and do
unilaterally modify commission rates from time to time.
"Fees" are amounts received by the Company for services rendered to the
referring insurance agents, and include inspection fees, policy-writing fees
and underwriting fees. The types of fees that may be charged by the Company
are determined by state regulations and, therefore, vary by state.
"Profit-sharing commissions" are paid by several insurance carriers, but
principally by one carrier, for whom the Company acts as a general agent.
Profit-sharing commissions are based upon a ratio of the amount of premiums
invoiced by the Company for insurance coverages placed with the applicable
insurance carrier and the loss-experience of such insurance carriers under such
coverages during the computation period. Because the volume of business placed
with a carrier and loss-ratios vary from year to year, and because insurance
carriers can and do unilaterally modify profit-sharing commissions to satisfy
their own objectives, the amount of profit sharing commissions may vary
dramatically from period to period. Volume bonuses are additional commissions
paid by several carriers for increased sales. The recognition of
profit-sharing commissions and volume bonuses adds no additional costs to the
Company's operations as all costs attributable to their generation have already
been recorded when the policies are placed with the carrier. Accordingly,
profit-sharing commissions and volume bonuses tend to impact heavily on gross
profit.
-8-
<PAGE> 11
Item 2 - Management's Discussion and Analysis of Financial Condition
and Consolidated Results of Operations (continued)
Commissions and fees are recognized as revenue when the Company invoices the
independent insurance agent for the insurance coverage placed for his client.
Generally, the Company invoices the insurance agent only after a particular
insurance coverage is "bound" (accepted by the insurance carrier and by the
agent's client). Commissions and fees are recognized when invoiced and are not
recognized incrementally over the period of the underlying insurance policy. In
other words, on a 12-month policy, the Company will recognize commissions and
fees at the time the policy is invoiced, rather than recognizing 1/12 of the
premium in each month that the policy is in force. Profit-sharing commissions
are recognized when received or reasonably estimatable from insurance carriers.
Some of the carriers may subsequently adjust the profit-sharing commissions
based on actual policy experience. Adjustments resulting in underpayments are
recorded as accounts receivable in the financial statements, while overpayments
are reflected as deferred revenue and are applied to future profit-sharing
commissions based on the Company's agreement with individual carriers.
"Cost of commissions and fees" consists, almost entirely, of the portion of
gross commissions and fees that is paid by the Company as commissions to the
referring independent insurance agents for doing business through the Company.
"Divisional operating expenses" consists of direct costs and expenses of
operating the branch offices including salaries of branch office managers and
employees, rent, utilities, telephone, employee benefits, payroll taxes, other
expenses and costs incurred directly by or for the benefit of branch offices.
"General and administrative expenses" consists of salaries of executives and
central administrative officers and employees, payroll taxes for such
employees, central computer expenses, general insurance costs, legal and
accounting and other general and administrative expenses and costs deemed
attributable by management to the operations of the Company as a whole.
"Other income (expenses) - net" consists principally of realized gains (or
losses) from investments by the Company in various securities, dividends on
such securities and interest earned by the Company on various short-term
investments.
-9-
<PAGE> 12
PART I - FINANCIAL INFORMATION
Item 2 - Management's Discussion and Analysis of Financial Condition
and Consolidated Results of Operations (continued)
Summaries of results of operations and comparisons for the comparable three
months ended March 31, 1995 and March 31, 1994 and for the prior three months
ended March 31, 1995 compared to the three months ended December 31, 1994.
<TABLE>
<CAPTION>
1st Quarter Ended Percent
MARCH 31, 1995 MARCH 31, 1994 Change
-------------- -------------- ---------
<S> <C> <C> <C>
Commissions & Fee Income $13,355,797 $12,261,510 8.9%
Cost of Commissions & Fees 5,750,676 5,467,569 5.2%
Total Operating Expenses 7,276,834 6,605,600 10.2%
Income Before Income Taxes 513,223 297,876 72.3%
Net Income 155,431 92,876 67.4%
</TABLE>
<TABLE>
<CAPTION>
Three Months Ended Percent
MARCH 31,1995 DECEMBER 31, 1994 Change
------------- ----------------- -------
<S> <C> <C> <C>
Commissions & Fee Income $13,355,797 $13,098,935 2.0 %
Cost of Commissions & Fees 5,750,676 5,842,286 -1.6 %
Total Operating Expenses 7,276,834 6,636,479 9.6 %
Income Before Income Taxes 513,223 783,524 -34.5 %
Net Income 155,431 409,524 -62.1 %
</TABLE>
At the end of the three months ended March 31, 1995, the Company had 36
operating locations in 22 states compared to 32 in the quarter ended March 31,
1994. On June 15, 1994 the Company acquired Alexander Howden, N.A.'s
Cleveland, Ohio office; on October 17, 1994 the Atlanta, Georgia and Newport
Beach, California Books of Business were acquired from Alexander Howden. On
February 15, 1995, the Gerry McLaughlin Agency in St. Louis, Missouri was
acquired. On March 31, 1995, the Company acquired Illinois R. B. Jones, a
former Alexander Howden office.
THREE MONTHS ENDED MARCH 31, 1995 AND 1994
Commissions and fee income increased $1,094,287 or 8.9% to $13,355,797 for the
three months ended March 31, 1995 as compared to $12,261,510 for the three
months ended March 31, 1994 due to expanding sales at new and existing offices.
Profit-sharing commissions in the three months ended March 31, 1995 accounted
for approximately 4.1% of commissions and fees as compared to 2.6% of
commissions and fees for the comparable period in 1994.
-10-
<PAGE> 13
PART I - FINANCIAL INFORMATION (continued)
Gross profit increased $811,180 or 11.9% to $7,605,121 for the three months
ended March 31, 1995 as compared to $6,793,941 for the three months ended March
31, 1994. Gross profit as a percentage of commissions and fees was 56.9% in
the three months ended March 31, 1995 as compared to 55.4% in the three months
ended March 31, 1994. The increase was primarily due to the increase in
profit-sharing commissions.
Total operating expenses, including both divisional and general and
administrative expenses, were $7,276,834 for the three months ended March 31,
1995 compared to $6,605,600 for the three months ended March 31, 1994. Total
operating expenses increased due to higher payroll expense resulting from
recent acquisitions and increases in corporate support staff. Total operating
expenses as a percent of commissions and fee income increased to 54.5% in 1995
as compared to 53.9% in 1994.
Other income increased $75,401 to $184,936 in the period ended March 31, 1995
as compared to $109,535 in the comparable period in 1994. The increase
represented increased dividends and interest on investments.
The Company's provision for income taxes increased to $357,791 for the three
months ended March 31, 1995 as compared to $205,000 for the three months ended
March 31, 1994. The increase in taxes is primarily due to increased
profitability and an increase in State income tax for prior years.
As a result of the forgoing factors, net income increased $62,555 to $155,431
for the three months ended March 31, 1995 as compared to $92,876 for the three
months ended March 31, 1994.
THREE MONTHS ENDED MARCH 31, 1995 AND DECEMBER 31, 1994
Commissions and fee income increased $256,862 to $13,355,797 for the three
months ended March 31, 1995 or 2.0% as compared to $13,098,935 for the three
months ended December 31, 1994. The 2.0% increase in commission and fee income
is attributable to increased sales. The profit sharing and volume bonus
commissions received in the three months ended March 31, 1995 was $545,386
compared to $122,116 for the three months ended December 31, 1994. The
increase in Commission and Fee income was primarily due to increased profit
sharing commissions.
-11-
<PAGE> 14
PART I - FINANCIAL INFORMATION (continued)
Gross profit increased $348,472 or 4.8% to $7,605,121 for the three months
ended March 31, 1995 compared to $7,256,649 for the three months ended December
31, 1994. Gross profit as a percentage of commissions and fees was 56.9% in
the three months ended March 31, 1995 as compared to 55.4% in the three months
ended December 31, 1994. The higher gross profit percentage for the three
months ended March 31, 1995 was primarily due to the larger profit-sharing
commissions recorded during the first quarter of 1995.
Total operating expenses, including both divisional and general and
administrative expenses, increased $640,355 to $7,276,834 for the three months
ended March 31, 1995 from $6,636,479 for the three months ended December 31,
1994. Operating expenses increased due to increased payroll expenses resulting
from recent acquisitions and increases in corporate support staff. Total
operating expenses as a percent of commission and fee income increased to 54.5%
for the three months ended March 31, 1995 as compared to 50.7% for the three
months ended December 31, 1994.
Other income was $184,936 for the period ending March 31, 1995 as compared to
$163,354 for the period ended December 31, 1994.
The company's provision for income taxes decreased to $357,791 for the three
months ended March 31, 1995 compared to a $374,000 for the three months ended
December 31, 1994. The decrease in taxes reflects a decreased profitability in
the first quarter of 1995.
As a result of the forgoing factors net income decreased from $155,431 for the
three months ended March 31, 1995 compared to $409,524 for the three months
ended December 31, 1994.
-12-
<PAGE> 15
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
No information called for by this item is applicable for the
period covered by this report.
Item 2. Changes in Securities
No information called for by this item is applicable for the
period covered by this report.
Item 3. Defaults Upon Senior Securities
Not Applicable
Item 4. Submission of Matters to a Vote of Security Holders
Not Applicable
Item 5. Other Information
Not Applicable
Item 6. Exhibits and Reports of Form 8-K
(a) Exhibits
Exhibit 27, Financial Data Schedule is being filed with this
Form 10-Q.
(b) Reports on Form 8-K
No reports were filed on Form 8-K during the quarter
for which this report is filed.
-13-
<PAGE> 16
H. W. KAUFMAN FINANCIAL GROUP, INC.
AND ITS CONSOLIDATED SUBSIDIARIES
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
H. W. Kaufman Financial Group, Inc.
------------------------------------
Registrant
Date May 11, 1995 /s/ Herbert W. Kaufman
------------------------------------
Herbert W. Kaufman
President
Date May 11, 1995 /s/ Gerald F. Wesolowski
------------------------------------
Gerald F. Wesolowski
Chief Financial Officer
-14-
<PAGE> 17
EXHIBIT INDEX
Exhibit Number Description
- -------------- -----------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
ART. 5 FDS FOR 1ST QUARTER 10-Q WITH YEAR-END DATA
</LEGEND>
<MULTIPLIER> 1
<S> <C> <C>
<PERIOD-TYPE> 3-MOS YEAR
<FISCAL-YEAR-END> DEC-31-1995 DEC-31-1994
<PERIOD-END> MAR-31-1995 DEC-31-1994
<CASH> $8,531,644 $10,370,260
<SECURITIES> $4,242,742 $3,983,853
<RECEIVABLES> $26,375,296 $26,032,184
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> $40,103,353 $41,494,080
<PP&E> $4,210,291 $3,902,304
<DEPRECIATION> $1,883,189 $1,689,590
<TOTAL-ASSETS> $47,827,473 $47,904,433
<CURRENT-LIABILITIES> $38,578,743 $39,595,927
<BONDS> $475,000 $425,000
<COMMON> $7,808 $7,808
0 0
0 0
<OTHER-SE> $6,499,421 $6,760,566
<TOTAL-LIABILITY-AND-EQUITY> $47,827,473 $47,904,733
<SALES> 0 0
<TOTAL-REVENUES> $13,540,733 $52,363,586
<CGS> 0 0
<TOTAL-COSTS> $5,750,676 $22,745,536
<OTHER-EXPENSES> $7,276,834 $26,935,394
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> $513,223 $3,220,324
<INCOME-TAX> $357,792 $1,453,000
<INCOME-CONTINUING> 0 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> $155,431 $1,767,324
<EPS-PRIMARY> $0.05 $0.57
<EPS-DILUTED> 0 0
</TABLE>