SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
___________
Form 10-Q
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 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 0-12329
LCS INDUSTRIES, INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 13-2648333
- ------------------------ ------------------------------------
(State of incorporation) (I.R.S. Employer Identification No.)
120 Brighton Road, Clifton, New Jersey 07012-1694
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (201) 778-5588
-----------------------------
N/A
- --------------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last report
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, and (2) has been subject to such filing
requirements for the past 90 days. Yes ( X ) No ( )
APPLICABLE ONLY TO CORPORATE ISSUERS:
The number of shares outstanding of the registrant's Common Stock, par
value of $.01 per share, as of August 1, 1997, was 4,660,066.
<PAGE>
LCS INDUSTRIES, INC.
AND SUBSIDIARIES
INDEX
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets
As of June 30, 1997 (Unaudited) and
September 30, 1996
Consolidated Statements of Income
For the Three Months and Nine Months Ended
June 30, 1997 and 1996 (Unaudited)
Consolidated Statements of Cash Flows
For the Nine Months Ended
June 30, 1997 and 1996 (Unaudited)
Notes to Consolidated Financial Statements
(Unaudited)
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of Operations
PART II OTHER INFORMATION
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
<PAGE>
<TABLE>
<CAPTION>
LCS INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, September 30,
1997 1996
------------ ------------
(Unaudited)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents ................................... $ 12,157,616 $ 11,893,982
Investments - held-to-maturity .............................. 14,144,605 10,435,026
Accounts receivable (less allowance
for doubtful accounts: June 30 - $548,000
and September 30 - $627,000) ............................ 21,835,198 24,519,050
Prepaid expenses and other current assets ................... 1,818,008 1,596,819
Deferred taxes .............................................. 305,000 338,000
------------ ------------
Total current assets ...................................... 50,260,427 48,782,877
------------ ------------
Investments - available-for-sale, net .......................... 124,419 369,722
Property and equipment, net .................................... 7,164,456 7,549,229
Goodwill (net of accumulated amortization: June
30 - $734,618 and September 30 - $519,855) ................. 7,352,563 7,567,326
Other assets ................................................... 803,159 700,793
------------ ------------
$ 65,705,024 $ 64,969,947
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable ............................................ $ 12,010,700 $ 14,726,387
Accrued salaries and commissions ............................ 2,416,673 2,389,837
Other accrued expenses ...................................... 3,251,261 2,513,841
Income taxes payable ........................................ 383,360 215,635
Current portion of long-term debt ........................... 1,071,096 1,047,989
Current portion of capital lease obligations ................ 330,415 390,399
Deferred revenue ............................................ 5,666,850 8,139,767
------------ ------------
Total current liabilities ................................. 25,130,355 29,423,855
------------ ------------
Long-term debt, net of current portion ......................... 3,528,415 4,331,542
Capital lease obligations, net of current portion .............. 12,621 250,997
Deferred taxes ................................................. 191,000 103,000
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
LCS INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, September 30,
1997 1996
------------ ------------
(Unaudited)
<S> <C> <C>
Stockholders' equity:
Preferred stock $.01 par value; authorized
1,000,000 shares; issued - none
Common stock $.01 par value; authorized
15,000,000 shares; issued June 30 - 4,846,414
shares and September 30 - 4,611,487 shares .............. 48,464 46,115
Common stock issuable ....................................... 1,490,431 1,945,983
Additional paid-in capital .................................. 8,594,492 7,223,263
Retained earnings ........................................... 26,920,575 21,887,737
------------ ------------
37,053,962 31,103,098
Less: treasury stock, at cost, 187,766 shares .............. (207,953) (207,953)
available-for-sale securities valuation adjustment,
net of deferred income taxes ......................... (3,376) (34,592)
------------ ------------
Total stockholders' equity ................................ 36,842,633 30,860,553
------------ ------------
$ 65,705,024 $ 64,969,947
============ ============
See Notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
LCS INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
For the Three and Nine Months Ended June 30,
(Unaudited)
Three Months Nine Months
------------------------------ ------------------------------
1997 1996 1997 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net sales ............................. $ 24,167,753 $ 22,398,255 $ 75,238,106 $ 70,400,069
Cost of sales ......................... 16,451,458 15,232,522 51,758,748 48,153,116
------------ ------------ ------------ ------------
Gross profit ....................... 7,716,295 7,165,733 23,479,358 22,246,953
Selling and administrative expenses ... 4,410,592 4,345,799 13,349,253 12,381,306
Other (income) expense:
Dividend and interest income ....... (365,286) (283,804) (1,051,227) (676,485)
Interest expense ................... 116,820 115,043 350,859 308,342
Loss on investment ................. 954,000 -- 954,000 --
------------ ------------ ------------ ------------
Income before income taxes ............ 2,600,169 2,988,695 9,876,473 10,233,790
Provision for income taxes ............ 1,410,000 1,236,000 4,388,000 4,198,000
------------ ------------ ------------ ------------
Net income ............................ $ 1,190,169 $ 1,752,695 $ 5,488,473 $ 6,035,790
============ ============ ============ ============
Per common and common equivalent share:
Net income ............................ $ .23 $ .34 $ 1.07 $ 1.17
============ ============ ============ ============
Dividends ............................. $ .038 $ .025 $ .10 $ .069
============ ============ ============ ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
LCS INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended June 30,
(Unaudited)
1997 1996
------------ ------------
<S> <C> <C>
Increase (Decrease) in cash and cash equivalents
Cash flows from operating activities:
Net income ......................................... $ 5,488,473 $ 6,035,790
------------ ------------
Adjustments to reconcile net income to net cash
provided by operating
activities:
Depreciation and amortization .................. 1,913,249 1,734,428
Deferred income taxes .......................... 99,000 (92,000)
Provision for doubtful accounts receivable ..... 85,000 90,000
Gain on sale of available-for-sale securities .. (474) --
------------ ------------
Total adjustments .............................. 2,096,775 1,732,428
Changes in operating assets and liabilities:
Accounts receivable ............................ 2,598,852 3,335,915
Prepaid expenses and other current assets ...... (548,675) 596,215
Accounts payable and accrued expenses .......... (1,833,229) (3,805,906)
Income taxes payable ........................... 506,725 1,225,531
Deferred revenue ............................... (2,472,917) 4,407,710
Other assets ................................... (102,366) (421,180)
------------ ------------
Total adjustments and changes .................. 245,165 7,070,713
------------ ------------
Net cash provided by operating activities ..... 5,733,638 13,106,503
------------ ------------
Cash flows from financing activities:
Changes in long-term debt and capital
leases (including current portion):
Borrowings ..................................... -- 2,500,000
Repayments ..................................... (1,196,582) (999,964)
Dividends paid ..................................... (455,635) (291,943)
Exercise of stock options .......................... 493,872 604,162
Employee Stock Purchase Plan and employment
agreement stock purchase proceeds .............. 85,154 117,665
------------ ------------
Net cash (used in) provided by financing activities (1,073,191) 1,929,920
------------ ------------
Cash flows from investing activities:
Additions to property and equipment ................ (1,313,713) (3,085,976)
Net purchases of investments-held-to-maturity ...... (3,083,100) (2,154,765)
------------ ------------
Net cash (used in) investing activities ............ (4,396,813) (5,240,741)
------------ ------------
Cash and cash equivalents:
Net increase in cash and cash equivalents .......... 263,634 9,795,682
Cash and cash equivalents at beginning of period ... 11,893,982 8,630,831
------------ ------------
Cash and cash equivalents at end of period ......... $ 12,157,616 $ 18,426,513
============ ============
Continued on next page.
<PAGE>
LCS INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Continued from previous page.
For the Nine Months Ended June 30, 1997 1996
---------- ----------
<S> <C> <C>
Supplementary disclosures of cash flow information:
Cash paid during the period for:
Interest ................................... $ 233,830 $ 155,185
Income taxes ............................... $3,937,260 $2,589,611
</TABLE>
Supplemental disclosures of non-cash investing
and financing activities:
Valuation adjustment:
For the nine months ended June 30, 1997, the account was adjusted to
reflect an increase in market values of the available-for-sale securities
portfolio of $31,216, net of deferred income taxes. For the nine months
ended June 30, 1996, $22,991, net of deferred income taxes, was added to
the available-for-sale securities valuation adjustment.
Stock Dividend:
On October 24, 1995, 2,061,087 shares of the Company's common stock were
issued as a result of a 2 for 1 stock split paid as a 100% stock
dividend. On January 5, 1996, 360 shares of common stock were paid as
dividends upon exchange of 150 shares of the Company's "old" common
stock.
Acquisition of business:
During the nine month periods ended June 30, 1997 and 1996, $455,552 and
$461,538 of common stock issuable was converted into 38,762 and 34,621
issued shares of the Company's common stock, in accordance with the terms
of the Catalog Resources, Inc. purchase agreement, as amended.
See Notes to Consolidated Financial Statements.
<PAGE>
LCS INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1) In the opinion of management, the accompanying unaudited financial statements
include all adjustments (consisting only of normal recurring accruals) which are
necessary for a fair presentation of results for the periods indicated. Certain
information and footnote disclosures normally included in complete financial
statements prepared in accordance with generally accepted accounting principles
have been omitted. Therefore, these financial statements should be read in
conjunction with the financial statements and the footnotes included in the
Company's Annual Report on Form 10-K for the year ended September 30, 1996. The
results of operations for the nine months ended June 30, 1996 are not
necessarily indicative of the results for the full year. The September 30, 1996
Balance Sheet was derived from the audited Balance Sheet at that date.
2) Effective April 5, 1997, the Company agreed to rescind its acquisition of
McIntyre & King, Ltd. The rescission agreement, dated June 30, 1997, provides
for the return of a portion of the down payment in one year. However, recovery
is uncertain and, therefore, the Company has expensed all payments, advances and
related costs. The loss on investment was $954,000 ($901,000 net of taxes).
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
Results of Operations
Three Months ended June 30, 1997
Sales increased 8% in the quarter ended June 30, 1997 to $24,168,000
from $22,398,000 for the comparable quarter of the prior year. This improvement
is accounted for by a 7% increase in fulfillment services, a 9% increase in list
marketing services and an 8% increase in computer services. Fulfillment
services' increase reflects a 23% increase in catalog fulfillment services, an
18% increase in continuity fulfillment services partially offset by decreases of
81% in inbound telemarketing and 93% in outbound telemarketing services. The
decline in inbound telemarketing services is part of the Company's strategic
plan to de-emphasize this service. The outbound telemarketing decrease resulted
from reduced volume under a contract to provide business-to-consumer services
for a telecommunications company and a reduced customer base. As previously
reported, outbound telemarketing has been made an integral part of the customer
service function within continuity fulfillment. The list marketing revenue
increase resulted primarily from an expanded customer base. Computer services
increase reflects the revenues related to the $40 million contract to provide
computer services through the building of a marketing database for a major
non-U.S. communications company. The contract extends through June, 1998,
subject to termination under certain circumstances. Revenue is recognized on the
percentage-of-completion method of accounting measured by the percentage of
labor hours incurred to date to the total labor hours required for the contract.
Gross profit increased 8% to $7,716,000 for the current quarter from
$7,166,000 in the comparable quarter of 1996. Gross profit margin was 32% in
each period. The increase in gross profit amount resulted primarily from the
increased sales volumes.
Selling and administrative expenses increased 1% to $4,411,000 in the
current quarter from $4,346,000 in the comparable quarter of 1996. Selling and
administrative expenses, as a percentage of sales, were 18% for the current
quarter and 19% for the comparable period in 1996. The decrease in the
percentage of selling and administrative expenses resulted from lower expenses,
as a percentage of sales, at the catalog fulfillment and list marketing
operations.
Net dividend and interest income of $248,000 was realized in the current
quarter compared to $169,000 in the comparable 1996 quarter. Dividend and
interest income increased $81,000 in the current fiscal quarter as a result of a
higher level of funds available for short-term investment and higher interest
rates. The unsecured line of credit available to the Company was not utilized in
either quarter.
The loss on investment of $954,000 ($901,000 net of taxes) recorded in
the current fiscal quarter represents a non-recurring charge for the write-off
of the Company's investment in McIntyre & King, Ltd. ("M&K"). This charge
represents $.18 per share in the current quarter. The Company's Board of
Directors decided to sever the relationship with M&K due to unexpected operating
losses that would have required unacceptable demands on management's time and
the financial support required to attempt to return M&K to profitability. As a
result, effective April 5, 1997, the Company agreed to rescind its acquisition
of M&K. The rescission agreement, dated June 30, 1997, provides for the return
of a portion of the down payment in one year. However, recovery is uncertain
and, therefore, the Company expensed all payments, advances and all related
costs.
<PAGE>
The effective tax rate in the current fiscal quarter was 54 per cent
compared to 41 per cent in the comparable period of the prior fiscal year. The
Company has not currently anticipated realizing sufficient capital gains during
the tax carryforward period to offset capital losses related to M&K, therefore,
no tax benefit has been recorded.
Net income was $1,190,000 ($.23 per share) in the current quarter
compared to $1,753,000 ($.34 per share) in the comparable 1996 quarter. The loss
on investment, as described above, amounted to $.18 per share in the current
quarter.
Nine Months ended June 30, 1997
Sales increased 7% for the nine months ended June 30, 1997 to $75,238,000
from $70,400,000 for the comparable period of the prior year. This improvement
is represented by a 9% increase in fulfillment services, an 8% increase in list
marketing services and a 1% increase in computer services. The fulfillment
services increase includes 18% increases in both the continuity fulfillment and
catalog fulfillment operations partially offset by a decrease of 78% in outbound
telemarketing. Explanations of these fluctuations are the same as described in
the current quarter section above. The increase in computer services sales
reflects the revenues related to the $40 million contract with a non-U.S.
communications company, as described in the current quarter section above. The
comparable period of fiscal 1996 also included sales from the completion of
another major project in North America for a telecommunications company while
launching the above described continuing project.
Gross profit increased 6% to $23,479,000 for the nine month period from
$22,247,000 in the comparable period of 1996. Gross profit margin was 31%
compared to 32% in the prior year. The increase in gross profit amount resulted
primarily from the increased sales volumes.
Selling and administrative expenses increased 8% to $13,349,000 from
$12,381,000. Selling and administrative expenses, as a percentage of sales, were
18% for both nine month periods. The increase in the amount of selling and
administrative expenses reflects the costs associated with the incremental
fulfillment and list marketing sales.
Net dividend and interest income of $700,000 was realized in the current
period compared to $368,000 in 1996. Dividend and interest income increased
$374,000 in the current nine month period as a result of a higher level of funds
available for short-term investment. The increase in interest expense period
over period of $43,000 resulted from interest expense from a $2,500,000
five-year term loan entered into by Catalog Resources, Inc. in March, 1996. A
portion of the proceeds ($.715 million) was not received until June, 1996 and,
therefore, did not fully impact the prior year period. The unsecured line of
credit available to the Company was not utilized in either period.
Refer to the current period section for a description of the loss on
investment of $954,000 ($901,000 net of taxes). This loss amounted to $.18 per
share in the nine month period.
The effective tax rate for the nine month period in fiscal 1997 was 44
per cent compared to 41 per cent in 1996. Refer to the current period section
for an explanation of this increase.
Net income was $5,488,000 ($1.07 per share) in the current period
compared to $6,036,000 ($1.17 per share) in the comparable 1996 period.
<PAGE>
Financial Condition, Liquidity and Capital Resources
Working capital was $25,130,000 at June 30, 1997. Fluctuations in the
components of working capital resulted primarily from the increases in cash and
cash equivalents and investments held-to-maturity and a decrease in accounts
payable partially offset by a decrease in accounts receivable and an increase in
other accrued expenses.
For the nine month period, cash generated by operations decreased
$7,373,000 over such amounts generated in the comparable period of the prior
year. This decrease was primarily the result of decreases in deferred revenue of
$6,681,000, income taxes payable of $719,000 and net income of $547,000 and
increases in prepaid expenses and other current assets of $1,145,000 and
accounts receivable of $737,000, partially offset by increases in accounts
payable of $1,973,000, depreciation and amortization of $179,000 and deferred
taxes of $191,000 and a decrease in other assets of $319,000.
In the nine month period ended June 30, 1997, financing activities used
funds of $1,073,000 compared to providing funds of $1,930,000 in 1996. In both
periods, the repayment of debt was the primary use of funds and amounted to
$1,197,000 in 1997 and $1,000,000 in 1996. In 1996, $2,500,000 was borrowed
under the terms of a five year term loan to substantially fund the expansion of
warehouse and office facilities at CRI. Cash used for investing activities, in
the current period, decreased $844,000 compared to 1996 due to reduced additions
to property and equipment of $1,772,000 partially offset by net purchases of
investments held-to-maturity of $928,000.
Pursuant to the purchase agreement, as amended, with CRI, the Company is
obligated to pay to CRI's selling shareholders, in cash or stock, up to an
aggregate of $10,000,000. Under such purchase agreement, the Company paid
$1,012,500 (one-half in cash and one-half in stock) on January 1, 1997. Further,
such amounts will be payable each January 1 through 2002 totaling a maximum of
$5,062,500. The discounted value of these future payments was recorded at
September 30, 1995 since it is probable that the future earnings levels will be
attained which will require the maximum payments to be made.
Management believes cash generated from current operations and other
liquid assets combined with the available bank credit line and the five year
term loan mentioned above will be sufficient to meet cash flow needs during the
fiscal year.
<PAGE>
PART II OTHER INFORMATION
Item 5. Other Information.
(a) On June 5, 1995, the Company's Registration Statement (Registration
No. 33-59935) on Form S-3 (the "Registration Statement") was declared effective
to register under the Securities Act of 1933 and Rule 415 thereunder the
continuous resale, by Prospectus dated June 5, 1995 (the "Prospectus"), of up to
232,452 shares of Common Stock of the Company which the Company by that date had
issued to the former stockholders (the "Selling Stockholders") of the Company's
Catalog Resources, Inc. ("CRI") subsidiary pursuant to an Agreement dated April
1, 1993, as amended, among the Company, CRI and the Selling Stockholders. On
October 24, 1995, the Company effected a 2 for 1 stock split by paying a 100%
stock dividend on all shares of its Common Stock outstanding on October 6, 1995
(the "Stock Split"), including the 232,452 shares covered by the Registration
Statement and Prospectus.
Pursuant to Rule 416 under the Securities Act of 1933 and the Company's
Undertakings set forth in Item 17 of Part II of the Registration Statement, the
Company hereby amends the Registration Statement and the Prospectus to reflect
the effect of the Stock Split by doubling each reference in the Registration
Statement and/or the Prospectus to a specific number of shares of the Company's
Common Stock.
(b) On August 7, 1997, the Company announced the appointment of Mr.
William Rella as President and Chief Operating Officer. Mr. Rella's most recent
position was President of the Continuity Fulfillment and related Computer
Services Division. Mr. Arnold J. Scheine remains Chairman and Chief Executive
Officer and will remain head of International Telecommunications. Also announced
was the resignation of Mr. Marvin Cohen, a founder of the Company, from the
Board of Directors. Mr. Rella has been appointed to the Board of Directors for
the remainder of Mr. Cohen's term. Mr. Cohen, who will continue as the Executive
Vice President and Secretary of the Company, expressed no disagreement with the
Company's operations, policies or practices.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibit 11 - Computation of earnings per share.
(b) Reports on Form 8-K - LCS Industries, Inc. filed a Form 8-K dated
June 9, 1997, in which the Company announced its decision to take a
non-recurring charge of approximately $1,000,000 to net income for the third
quarter ending June 30, 1997 as the result of its decision to write off the
entire investment in McIntyre and King, Ltd., a United Kingdom-based
telemarketing, fulfillment and mailing services company acquired in April, 1997.
The actual loss on investment charged to net income was $901,000.
<PAGE>
SIGNATURES
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.
Date: Clifton, New Jersey
August 8, 1997
LCS INDUSTRIES, INC.
(Registrant)
By: /s/ Arnold J. Scheine
---------------------
Arnold J. Scheine
Chairman
(Chief Executive Officer)
By: /s/ Pat R. Frustaci
-------------------
Pat R. Frustaci
Vice President-Finance
(Chief Financial Officer)
LCS INDUSTRIES, INC.
Commission File No. 0-12329
------
Quarterly Report on Form 10-Q
for the
Nine Months Ended June 30, 1997
EXHIBIT
<PAGE>
INDEX TO EXHIBIT
Exhibit
No. Description
--- -----------
11 Statement re: Computation of Per Share Earnings
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT 11
LCS INDUSTRIES, INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE AND
COMMON EQUIVALENT SHARE
For the Three and Nine Months Ended June 30,
(Unaudited)
Three Months Nine Months
------------------------- -------------------------
1997 1996 1997 1996
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Weighted average shares outstanding .......... 4,654,374 4,399,717 4,612,317 4,299,128
Weighted average - dilutive stock options .... 359,968 636,540 372,048 681,877
Shares issuable in connection with the
acquisition of Catalog Resources, Inc. .... 121,713 160,475 121,713 160,475
---------- ---------- ---------- ----------
5,136,055 5,196,732 5,106,078 5,141,480
========== ========== ========== ==========
Net income ................................... $1,190,169 $1,752,695 $5,488,473 $6,035,790
Earnings per share and common equivalent share $ .23 $ .34 $ 1.07 $ 1.17
========== ========== ========== ==========
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> JUN-30-1997
<CASH> 12,157,616
<SECURITIES> 14,144,605
<RECEIVABLES> 22,383,198
<ALLOWANCES> 548,000
<INVENTORY> 180,000
<CURRENT-ASSETS> 50,260,427
<PP&E> 18,530,529
<DEPRECIATION> 11,366,073
<TOTAL-ASSETS> 65,705,024
<CURRENT-LIABILITIES> 25,130,355
<BONDS> 0
0
0
<COMMON> 48,464
<OTHER-SE> 36,794,169
<TOTAL-LIABILITY-AND-EQUITY> 65,705,024
<SALES> 0
<TOTAL-REVENUES> 75,238,106
<CGS> 0
<TOTAL-COSTS> 51,758,748
<OTHER-EXPENSES> 13,349,253
<LOSS-PROVISION> 85,000
<INTEREST-EXPENSE> 350,859
<INCOME-PRETAX> 9,876,473
<INCOME-TAX> 4,388,000
<INCOME-CONTINUING> 5,488,473
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,488,473
<EPS-PRIMARY> 1.07
<EPS-DILUTED> 1.07
</TABLE>
