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 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 0-12329
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 (973) 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 May 1, 1998, was 4,839,160.
<PAGE>
LCS INDUSTRIES, INC.
AND SUBSIDIARIES
INDEX
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets
As of March 31, 1998 (Unaudited) and
September 30, 1997
Consolidated Statements of Operations
For the Three Months and Six Months Ended
March 31, 1998 and 1997 (Unaudited)
Consolidated Statements of Cash Flows
For the Six Months Ended
March 31, 1998 and 1997 (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 6. Exhibits and Reports on Form 8-K
<PAGE>
<TABLE>
<CAPTION>
LCS INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, September 30,
1998 1997
------------ ------------
(Unaudited)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents ................................... $ 16,971,920 $ 14,619,271
Investments - held-to-maturity .............................. 13,907,735 14,410,101
Accounts receivable (less allowance
for doubtful accounts: March 31 - $550,000
and September 30 - $496,000) ............................ 19,173,083 23,163,774
Prepaid expenses and other current assets ................... 1,453,208 1,460,990
Deferred taxes .............................................. 417,000 684,000
------------ ------------
Total current assets ...................................... 51,922,946 54,338,136
------------ ------------
Investments - available-for-sale, net .......................... 1,516 123,708
Property and equipment, net .................................... 6,514,982 7,093,790
Goodwill (net of accumulated amortization: March
31 - $949,380 and September 30 - $806,204) ................. 7,137,801 7,280,977
Other assets ................................................... 803,258 672,656
------------ ------------
$ 66,380,503 $ 69,509,267
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable ............................................ $ 11,835,723 $ 14,798,326
Accrued salaries and commissions ............................ 2,702,865 3,127,141
Other accrued expenses ...................................... 2,775,688 3,899,876
Income taxes payable ........................................ 531,548 290,407
Current portion of long-term debt ........................... 1,049,881 1,087,511
Current portion of capital lease obligations ................ 29,260 211,580
Deferred revenue ............................................ 1,573,699 4,124,699
------------ ------------
Total current liabilities ................................. 20,498,664 27,539,540
------------ ------------
Long-term debt, net of current portion ......................... 2,768,915 3,444,533
Deferred taxes ................................................. 189,000 249,000
Deferred compensation .......................................... 282,269 --
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
LCS INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(continued(
March 31, September 30,
1998 1997
------------ ------------
(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 March 31 - 5,009,145
shares and September 30 - 4,854,847 shares .............. 50,091 48,548
Common stock issuable ....................................... 1,071,532 1,490,431
Additional paid-in capital .................................. 9,406,614 8,702,971
Retained earnings ........................................... 32,675,923 28,245,206
------------ ------------
43,204,160 38,487,156
Less: Treasury stock, at cost, March 31 - 205,996 shares
and September 30 - 187,766 ...................... (562,505) (207,953)
Available-for-sale securities valuation adjustment,
net of deferred income taxes .................... -- (3,009)
------------ ------------
Total stockholders' equity ................................ 42,641,655 38,276,194
------------ ------------
$ 66,380,503 $ 69,509,267
============ ============
</TABLE>
See Notes to Consolidated Financial Statements
<PAGE>
<TABLE>
<CAPTION>
LCS INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three and Six Months Ended March 31,
(Unaudited)
Three Months Six Months
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net sales ............................. $ 23,966,725 $ 24,839,137 $ 49,612,885 $ 51,070,353
Cost of sales ......................... 16,550,120 17,059,924 34,321,874 35,307,290
------------ ------------ ------------ ------------
Gross profit .......................... 7,416,605 7,779,213 15,291,011 15,763,063
Selling and administrative expenses ... 3,995,264 4,443,888 8,175,767 8,938,661
Other (income) expense:
Dividend and interest income ....... (385,670) (348,982) (806,250) (685,941)
Interest expense ................... 82,687 109,578 179,393 234,039
Other income ....................... -- -- (210,000) --
------------ ------------ ------------ ------------
Income before income taxes ............ 3,724,324 3,574,729 7,952,101 7,276,304
Provision for income taxes ............ 1,529,000 1,462,000 3,169,000 2,978,000
------------ ------------ ------------ ------------
Net income ............................ $ 2,195,324 $ 2,112,729 $ 4,783,101 $ 4,298,304
============ ============ ============ ============
Per common and common equivalent share:
Basic earnings ........................ $ .46 $ .45 $ 1.00 $ .94
============ ============ ============ ============
Diluted earnings ...................... $ .43 $ .41 $ .92 $ .84
============ ============ ============ ============
Dividends ............................. $ .038 $ .038 $ .075 $ .063
============ ============ ============ ============
</TABLE>
See Notes to Consolidated Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
LCS INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended March 31,
(Unaudited)
1998 1997
------------ ------------
<S> <C> <C>
Increase (Decrease) in cash and cash equivalents
Cash flows from operating activities:
Net income ........................................ $ 4,783,101 $ 4,298,304
------------ ------------
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization ................. 1,420,323 1,247,865
Deferred income taxes ......................... 205,000 75,000
Provision for doubtful accounts receivable .... 80,000 60,000
Deferred compensation ......................... 282,269 --
Gain on sale of available-for-sale securities . -- (474)
------------ ------------
Total adjustments ............................. 1,987,592 1,382,391
Changes in operating assets and liabilities:
Accounts receivable ........................... 3,910,691 1,699,086
Prepaid expenses and other current assets ..... (463,977) 80,231
Accounts payable and accrued expenses ......... (4,502,283) (1,737,229)
Income taxes payable .......................... 504,063 165,429
Deferred revenue .............................. (2,551,000) (650,920)
Other assets .................................. (130,602) 31,684
------------ ------------
Total adjustments and changes ................. (1,245,516) 970,672
------------ ------------
Net cash provided by operating activities ......... 3,537,585 5,268,976
------------ ------------
Cash flows from financing activities:
Changes in note payable, long-term debt and capital
leases (including current portion):
Repayments .................................... (1,410,602) (923,503)
Dividends paid .................................... (352,333) (282,569)
Exercise of stock options ......................... 124,972 470,932
Employee Stock Purchase Plan and employment
agreement proceeds ............................ 49,962 62,590
------------ ------------
Net cash used in financing activities ............. (1,588,001) (672,550)
------------ ------------
Cash flows from investing activities:
Additions to property and equipment ............... (698,339) (739,962)
Net sales (purchases) of investments .............. 1,101,404 (799,231)
------------ ------------
Net cash provided by (used in) investing activities 403,065 (1,539,193)
------------ ------------
Cash and cash equivalents:
Net increase in cash and cash equivalents ......... 2,352,649 3,057,233
Cash and cash equivalents at beginning of period .. 14,619,271 11,893,982
------------ ------------
Cash and cash equivalents at end of period ........ $ 16,971,920 $ 14,951,215
============ ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
LCS INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended March 31,
(Unaudited)
1998 1997
------------ ------------
<S> <C> <C>
Supplementary disclosures of cash flow information:
Cash paid during the period for:
Interest $ 167,851 $ 170,117
Income taxes $ 2,133,432 $ 2,892,559
</TABLE>
Supplemental disclosures of non-cash investing
and financing activities:
Valuation adjustment:
In fiscal 1998, the valuation adjustment account is no longer required as
a result of selling the available-for-sale securities portfolio to which
the valuation adjustment related. For the six months ended March 31,
1997, the account was adjusted to reflect an increase in market values of
the available-for-sale securities portfolio of $31,181, net of deferred
income taxes.
Stock dividends:
On October 7, 1997, 144 shares of the Company's common stock were paid as
dividends upon exchange of 33 shares of the Company's "old" common stock.
Treasury stock:
For the six months ended March 31, 1998, 18,230 shares of the Company's
outstanding Common Stock were received in exchange for options exercised
covering 132,000 shares of Common Stock.
Long-term debt and acquisition of business:
As a result of Amendment No. 2 of the Catalog Resources, Inc. purchase
agreement, (as explained in Note 3 to the Consolidated Financial
Statements), additional long-term debt of $506,250 was recorded, offset
by charges to common stock issuable of $418,899 and additional paid-in
capital of $87,351 during fiscal 1998. For the six month period ended
March 31, 1997, $455,552 of common stock issuable was converted into
38,762 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 (as amended by Form 10-K/A-1) for the year
ended September 30, 1997. The results of operations for the six months ended
March 31, 1998 are not necessarily indicative of the results for the full year.
The September 30, 1997 Balance Sheet was derived from the audited Balance Sheet
at that date.
2) Effective October 1, 1997, the Company adopted the provisions of Statement of
Financial Accounting Standards ("SFAS") No. 128, "Earnings per Share", issued in
March, 1997. The Statement requires dual presentation of basic and diluted
earnings per share by entities with complex capital structures. Basic earnings
per share includes no dilution and is computed by dividing income available to
common shareholders by the weighted-average number of common shares outstanding
for the period. Diluted earnings per share reflects the potential dilution of
securities that could share in the earnings of the Company. The prior year's
earnings per share amounts have been restated to reflect the provisions of SFAS
No. 128.
3) On December 30, 1997, the Company and former shareholders of Catalog
Resources, Inc. agreed to Amendment No. 2 of the purchase agreement dated April
1, 1993 and amended August 1, 1994. This Amendment provides for the payment made
January 2, 1998 of $1,012,500 to be 100% in cash compared to the previously
agreed 50% in cash and 50% in Common Stock of the Company, subject to a maximum
number of shares to be issued of 660,000. Accordingly, the current portion of
long-time debt at December 31, 1997 was increased by $506,250 (50% of the
$1,012,500 payment). This was offset by a reduction in common stock issuable of
$418,899, representing the present value at September 30, 1995 of the originally
anticipated stock issuance, and a charge to additional paid-in capital of
$87,351.
As a result of Amendment No. 2, the parties have agreed to reduce the maximum
number of shares issuable under the amended agreement by the shares which would
have been issued on January 2, 1998 based on the provisions of the original
agreement. The revised maximum number of shares issuable is 628,020 of which
538,287 shares have been previously issued.
4) On January 6, 1998, the Company announced it had entered into an additional
one-year agreement to provide computer services for a major non-U.S.
communications company. Total revenue of $6 million is expected and the
assignment will commence July 1, 1998 immediately following the conclusion of
the current three-year project.
5) Other income for the six months ended March 31, 1998 represents a payment
from McIntyre and King, Ltd. ("M&K") representing final settlement of a portion
of the down-payment made in connection with the 1997 rescinded purchase
agreement. During fiscal 1997, the Company had written off its entire investment
in M&K since any recovery, at that time, was uncertain.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
Results of Operations
Three Months ended March 31, 1998
Sales declined 4% in the quarter ended March 31, 1998 to $23,967,000
from $24,839,000 for the comparable quarter of the prior year. This decrease is
accounted for by a 3% increase in fulfillment services offset by decreases of
18% and 3% in computer and list marketing services, respectively. The
fulfillment services improvement reflects a 17% increase in continuity services
partially offset by decreases of 68% in telemarketing services and 10% in
catalog fulfillment. The increase in continuity services is primarily a result
of increased billings to existing customers. The decrease in telemarketing
services is in line with the Company's program to de-emphasize this activity.
The decrease in catalog fulfillment reflects the impact of the loss of billings
to several customers upon their acquisition by third parties. The lower computer
services revenues reflect reduced billings, when compared to the prior year, for
the last phase of the three-year $40 million contract to build and manage a
marketing database for a major non-U.S. communications company. The initial
contract will be completed by June 30, 1998. As announced on January 6, 1998,
the Company has entered into an additional $6 million one-year contract with
this non-U.S. communications company to provide computer services commencing
July 1, 1998. The decline in list management revenues reflects business
attrition offset by the acquisition of new customers. In addition, a significant
new list management customer will continue billing list renters until the end of
its fiscal year. As a result, the current quarter includes only commissions for
services provided.
Gross profit decreased 5% to $7,417,000 for the current quarter from
$7,779,000 in the comparable quarter of 1997. Gross profit margin was 31% in
each period. The decrease in gross profit amount resulted primarily from the
decline in sales.
Selling and administrative expenses decreased 10% to $3,995,000 in the
current quarter from $4,444,000 in the comparable quarter of 1997. Selling and
administrative expenses, as a percentage of sales, were 17% in the current
quarter and 18% in the 1997 comparable period. The decrease in the amount and
percentage of sales of selling and administrative expenses is primarily the
result of the lower executive compensation, travel and communication expenses.
Net dividend and interest of $303,000 was realized in the current
quarter compared to $239,000 in the comparable 1997 quarter. Dividend and
interest income increased $37,000 in the current fiscal quarter as a result of a
higher level of funds available for short-term investment coupled with higher
interest rates during the current quarter. The decrease in interest expense
quarter over quarter of $27,000 resulted primarily from reduced debt and capital
lease obligations. The unsecured line of credit held available to the Company
was not utilized in either quarter.
Net income was $2,195,000 ($.43 per share-diluted) in the current quarter
compared to $2,113,000 ($.41 per share-diluted) in the comparable 1997 quarter.
<PAGE>
Six Months ended March 31, 1998
Sales decreased 3% for the six months ended March 31, 1998 to
$49,613,000 from $51,070,000 for the comparable period of the prior year. This
decline is represented by a 1% increase in fulfillment services offset by
decreases of 17% and 1% in computer and list marketing services, respectively.
The increase in fulfillment services reflects an increase in continuity services
of 20% partially offset by decreases of 75% in telemarketing and 11% in catalog
fulfillment. The increase in continuity services is primarily a result of
increased billings to existing customers. The decrease in telemarketing services
is in line with the Company's program to de-emphasize this activity. The
decrease in catalog fulfillment reflects the impact of the loss of billings to
several customers upon their acquisition by third parties. The lower computer
services revenues reflect reduced billings, when compared to the prior year, for
the last phase of the three-year $40 million contract to build and manage a
marketing database for a major non-U.S. communications company. The initial
contract will be completed by June 30, 1998. As announced on January 6, 1998,
the Company has entered into an additional $6 million one-year contract with
this non-U.S. communications company to provide computer services commencing
July 1, 1998. The decline in list management revenues reflects business
attrition offset by the acquisition of new customers. In addition, a significant
new list management customer will continue billing list renters until the end of
its fiscal year. As a result, the current period includes only commissions for
services provided.
Gross profit decreased 3% to $15,291,000 for the six month period from
$15,763,000 in the comparable period of 1997. Gross profit margin was 31% in
each six month period. The decrease in gross profit amount resulted primarily
from decreased sales.
Selling and administrative expenses decreased 9% to $8,176,000 from
$8,939,000 in 1997. Selling and administrative expenses, as a percentage of
sales, were 16% for the current six month period and 18% in the prior year. The
decrease in the amount and percentage of selling and administrative expenses is
primarily the result of lower executive compensation, travel and communication
expenses.
Net dividend and interest of $627,000 was realized in the current six
month period compared to $452,000 in the comparable period in 1997. Dividend and
interest income increased $120,000 in the current six month period as a result
of a higher level of funds available for short-term investment coupled with
higher interest rates. The decrease in interest expense period over period of
$55,000 resulted primarily from reduced debt and capital lease obligations. The
unsecured line of credit held available to the Company was not utilized in
either period.
During the six month period, a payment of $210,000 was received from
McIntyre & King, Ltd. ("M&K") and recorded as other income. This payment
represents final settlement of a portion of the down-payment made in connection
with the 1997 rescinded purchase agreement. During fiscal 1997, the Company had
written off its entire investment in M&K since any recovery, at that time, was
uncertain.
Net income was $4,783,000 ($.92 per share-diluted) in the current period
compared to $4,298,000 ($.84 per share-diluted) in the comparable 1997 period.
<PAGE>
Financial Condition, Liquidity and Capital Resources
Working capital was $31,424,000 at March 31, 1998 compared to
$26,799,000 at September 30, 1997. The working capital increase resulted from a
decrease in current assets of $2,415,000 while current liabilities decreased
$7,041,000. The decease in current assets was primarily the result of lower
accounts receivable-net ($3,991,000) and investments-held-to- maturity
($502,000) offset by an increase in cash and cash equivalents ($2,353,000). The
decrease in current liabilities resulted primarily from lower accounts payable
($2,963,000), deferred revenue ($2,551,000) and other accrued liabilities
($1,124,000). At December 31, 1997, the ratio of long-term debt to equity was
.08 to 1.
For the six month period, cash generated by operations decreased
$1,731,000 over such amounts generated in the comparable period of the prior
year. This decrease was the result of decreases in adjustments to net income and
changes in operating assets and liabilities ($2,216,000) offset by an increase
in net income ($485,000). The decrease in adjustments to net income and changes
in operating assets and liabilities resulted primarily from decreases in
accounts payable and accrued expenses ($2,765,000) and deferred revenue
($1,901,000) partially offset by a decrease in accounts receivable ($2,212,000).
In the six month period ended March 31, 1998, funds used by financing
activities increased $915,000 compared to the comparable period of the prior
year. The increased usage resulted from increased repayment of debt ($487,000),
reduced receipts from the exercise of stock options ($346,000) and increased
payment of dividends ($70,000). For the same period, cash provided by investing
activities increased $1,942,000 as a result of a net sale of investments
($1,900,000) and reduced additions to property and equipment ($42,000).
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 (100% in cash - see Note 3 to the consolidated financial statements
for further explanation) on January 2, 1998. Further, such amounts will be
payable January 1 through 2002 totaling a maximum of $4,050,500. The discounted
value of these future payments was recorded at September 30, 1995 since it was
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.
Year 2000 Issues
Certain of the Company's operational computer programs use two digits to
identify a year in the date field which does not consider the impact, if any, of
the upcoming change in the century. The Company anticipates, at a cost not
material to financial results, the timely completion of any programming needed
to address this issue and result in successful computer processing in the year
2000 and beyond.
<PAGE>
PART II OTHER INFORMATION
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. did not file any
reports on Form 8-K during the quarter ended March 31, 1998.
<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
May 11, 1998
LCS INDUSTRIES, INC.
(Registrant)
By: /s/William Rella
----------------
William Rella
President
(Chief Executive Officer)
By: /s/Pat R. Frustaci
------------------
Pat R. Frustaci
Vice President-Finance
(Chief Financial Officer)
<PAGE>
LCS INDUSTRIES, INC.
Commission File No. 0-12329
---------
Quarterly Report on Form 10-Q
for the
Six Months Ended March 31, 1998
EXHIBIT
<PAGE>
INDEX TO EXHIBIT
Exhibit
No. Description
--- -----------
11 Statement re: Computation of Per Share Earnings
<TABLE>
<CAPTION>
LCS INDUSTRIES, INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE AND
COMMON EQUIVALENT SHARE
For the Three and Six Months Ended March 31,
(Unaudited)
Three Months Six Months
------------------------- -------------------------
1998 1997 1998 1997
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Basic earnings per share:
Weighted average shares outstanding .......... 4,801,861 4,649,076 4,774,356 4,591,288
Net income.................................... 2,195,324 $ 2,112,729 $ 4,783,101 $ 4,298,304
Basic earnings per share...................... $ .46 $ .45 $ 1.00 $ .94
Diluted earnings per share
Weighted average shares outstanding........... 4,801,861 4,649,076 4,774,356 4,591,288
Weighted average - dilutive stock options .... 253,011 356,906 314,921 378,089
Shares issuable in connection with the
acquisition of Catalog Resources, Inc. .... 89,733 121,713 89,733 121,713
---------- ---------- ---------- ----------
5,144,605 5,127,695 5,179,010 5,091,090
========== ========== ========== ==========
Net income ................................... $2,195,324 $2,112,729 $4,783,101 $4,298,304
Diluted earnings per share and common
equivalent share.............................. $ .43 $ .41 $ .92 $ .84
========== ========== ========== ==========
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> MAR-31-1998
<CASH> 16,971,920
<SECURITIES> 13,907,735
<RECEIVABLES> 19,723,083
<ALLOWANCES> 550,000
<INVENTORY> 181,140
<CURRENT-ASSETS> 51,922,946
<PP&E> 19,651,675
<DEPRECIATION> 13,136,693
<TOTAL-ASSETS> 66,380,503
<CURRENT-LIABILITIES> 20,498,664
<BONDS> 0
0
0
<COMMON> 50,091
<OTHER-SE> 42,591,564
<TOTAL-LIABILITY-AND-EQUITY> 66,380,503
<SALES> 0
<TOTAL-REVENUES> 49,612,885
<CGS> 0
<TOTAL-COSTS> 34,321,874
<OTHER-EXPENSES> 8,175,767
<LOSS-PROVISION> 80,000
<INTEREST-EXPENSE> 179,393
<INCOME-PRETAX> 7,952,101
<INCOME-TAX> 3,169,000
<INCOME-CONTINUING> 4,783,101
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,783,101
<EPS-PRIMARY> 1.00
<EPS-DILUTED> .92
</TABLE>
