<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD
ENDED SEPTEMBER 30, 1996
/ / 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 0-6354
AMERICAN VANGUARD CORPORATION
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C>
DELAWARE 95-2588080
(State or other jurisdiction of (I.R.S. Employer
Incorporation or organization) Identification Number)
4100 East Washington Boulevard, Los Angeles, California 90023
_______________________________________________________ _____
(Address of principal executive offices) (Zip Code)
</TABLE>
(213) 264-3910
(Registrant's telephone number, including area code)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(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 (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
_____ _____
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
DURING THE PRECEDING FIVE YEARS
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes No
_____ ______
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common Stock, $.10 Par Value -- 2,522,079 shares as of September 30,
1996.
<PAGE> 2
AMERICAN VANGUARD CORPORATION
INDEX
PART I - FINANCIAL INFORMATION Page Number
-----------
Item 1.
Financial Statements:
Consolidated Statements of Income
for the three and nine months ended
September 30, 1996 and 1995 1
Consolidated Balance Sheets
as of September 30, 1996 and
December 31, 1995. 2
Consolidated Statements of Cash Flows
for the nine months ended
September 30, 1996 and 1995 4
Notes to Consolidated Financial
Statements 6
Item 2.
Management's Discussion and Analysis of
Financial Condition and Results of
Operations 8
PART II - OTHER INFORMATION 13
SIGNATURE PAGE 14
<PAGE> 3
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
For the three months For the nine months
ended September 30 ended September 30
-------------------------------- ---------------------------------
1996 1995 1996 1995
----------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net sales $ 9,094,300 $ 11,138,200 $ 29,407,400 $ 34,815,000
Cost of sales 5,401,800 6,971,300 18,295,700 21,650,700
----------- ------------ ------------ ------------
Gross profit 3,692,500 4,166,900 11,111,700 13,164,300
Operating expenses 3,419,900 3,663,100 9,797,400 11,784,000
----------- ------------ ------------ ------------
Operating income 272,600 503,800 1,314,300 1,380,300
Interest expense (230,400) (218,500) (687,300) (750,000)
Interest income 2,200 1,600 6,600 5,600
----------- ------------ ------------ ------------
Income before
income taxes 44,400 286,900 633,600 635,900
Income taxes expense (17,800) (114,700) (257,000) (256,900)
----------- ------------ ------------ ------------
Net income $ 26,600 $ 172,200 $ 376,600 $ 379,000
=========== ============ ============ ============
Net income per share $ .01 $ .07 $ .15 $ .15
=========== ============ ============ ============
Weighted average number
of shares 2,521,862 2,551,069 2,522,006 2,552,784
=========== ============ ============ ============
</TABLE>
See accompanying notes to consolidated financial statements.
1
<PAGE> 4
AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
September 30, Dec. 31,
1996 1995
----------- -----------
(Unaudited) (Note)
<S> <C> <C>
Current assets:
Cash $ 417,200 $ 331,600
Receivables:
Trade 8,757,400 15,228,300
Other 59,000 257,700
----------- -----------
8,816,400 15,486,000
----------- -----------
Inventories 12,105,800 8,269,600
Prepaid expenses 828,200 581,000
----------- -----------
Total current assets 22,167,600 24,668,200
Property, plant and
equipment, net 12,981,800 13,680,400
Land held for development 210,800 210,800
Cost in excess of assets
acquired, net 417,000 442,100
Deferred charges, net 60,500 57,900
Other assets 277,900 281,600
----------- -----------
$36,115,600 $39,341,000
=========== ===========
</TABLE>
See accompanying notes to consolidated financial statements.
2
<PAGE> 5
AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
September 30, Dec. 31,
1996 1995
------------ ------------
(Unaudited) (Note)
<S> <C> <C>
Current liabilities:
Current installments of
long-term debt $ 1,265,200 $ 1,265,600
Accounts payable 1,447,200 2,810,800
Accrued expenses 2,060,100 3,530,900
Income taxes payable -- 1,366,300
------------ ------------
Total current liabilities 4,772,500 8,973,600
Note payable to bank 5,600,000 3,900,000
Long-term debt, excluding
current installments 4,611,600 5,539,500
Deferred income taxes 2,922,500 2,922,500
------------ ------------
Total liabilities 17,906,600 21,335,600
------------ ------------
Stockholders' Equity:
Preferred stock, $.10
par value per share;
authorized 400,000
shares; none issued -- --
Common stock, $.10 par
value per share;
authorized 10,000,000
shares; issued 2,564,429
shares in 1996 and
2,331,371 shares in 1995 256,400 233,100
Additional paid-in
capital 3,879,000 1,688,200
Retained earnings 14,370,100 16,345,600
------------ ------------
18,505,500 18,266,900
Treasury stock at cost
(47,350 shares) (296,500) (261,500)
------------ ------------
Total stockholders' equity 18,209,000 18,005,400
------------ ------------
$ 36,115,600 $ 39,341,000
============ ============
</TABLE>
Note: The balance sheet at December 31, 1995 has been derived from the audited
financial statements at that date (Note 1).
See accompanying notes to consolidated financial statements.
3
<PAGE> 6
AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(UNAUDITED)
<TABLE>
<CAPTION>
Increase (decrease) in cash 1996 1995
----------- -----------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 376,600 $ 379,000
Adjustments to reconcile net income
to net cash provided by
operating activities:
Depreciation and amortization 1,761,700 2,711,300
Changes in assets and liabilities
associated with operations:
Decrease in receivables 6,669,600 8,660,500
Increase in inventories (3,836,200) (1,886,400)
Decrease (increase) in
prepaid expenses (247,200) 432,400
Decrease in accounts
payable (1,363,600) (370,000)
Decrease in other payables
and accrued expenses (2,837,100) (4,396,100)
----------- -----------
Net cash provided by
operating activities 523,800 5,530,700
----------- -----------
Cash flows from investing activities:
Capital expenditures (951,600) (429,400)
Increase in deferred charges (12,000) (226,400)
Net increase in other noncurrent
assets (73,300) (114,600)
----------- -----------
Net cash used in
investing activities (1,036,900) (770,400)
----------- -----------
</TABLE>
(Continued)
4
<PAGE> 7
AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(UNAUDITED)
<TABLE>
<CAPTION>
Increase (decrease) in cash 1996 1995
----------- -----------
<S> <C> <C>
Cash flows from financing activities:
Net borrowings (repayments) under
line of credit agreement $ 1,700,000 $(3,000,000)
Increase in long-term debt 96,600 --
Principal payments on long-term debt (1,024,900) (1,602,800)
Acquisition of treasury stock (35,000) (156,000)
Payment of cash dividends (138,000) --
----------- -----------
Net cash provided by (used
in) financing activities 598,700 (4,758,800)
----------- -----------
Net increase in cash 85,600 1,500
Cash at beginning of year 331,600 317,700
----------- -----------
Cash as of September 30 $ 417,200 $ 319,200
=========== ===========
</TABLE>
On March 15, 1996, the Company distributed 233,058 shares of Common Stock in
connection with a 10% Common Stock dividend to stockholders of record as of
February 29, 1996. As a result of the stock dividend, Common Stock was increased
by $23,300, additional paid-in capital was increased by $2,190,800, and retained
earnings was decreased by $2,214,100 (Note 4).
See accompanying notes to consolidated financial statements.
5
<PAGE> 8
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles
for interim financial information and with the instructions to Form
10-Q and Article 10 of Regulation S-X. Accordingly, they do not include
all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion
of management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation, have been
included. For further information, refer to the consolidated financial
statements and footnotes thereto included in the Company's Annual
Report on Form 10-K for the year ended December 31, 1995. Operating
results for the three and nine-month periods ended September 30, 1996
are not necessarily indicative of the results that may be expected for
the year ending December 31, 1996.
2. Inventories - The components of inventories consist of the following:
<TABLE>
<CAPTION>
Sept. 30, 1996 Dec. 31, 1995
-------------- -------------
<S> <C> <C>
Finished products $ 9,908,700 $6,001,600
Raw materials 2,197,100 2,268,000
----------- ----------
$12,105,800 $8,269,600
=========== ==========
</TABLE>
3. Property, plant and equipment at September 30, 1996 and December 31,
1995, consists of the following:
<TABLE>
<CAPTION>
Sept. 30, Dec. 31,
1996 1995
----------- -----------
<S> <C> <C>
Land $ 2,382,600 $ 2,319,800
Buildings and improvements 3,808,500 3,539,900
Machinery and equipment 20,622,000 19,998,800
Office furniture and fixtures 1,025,100 971,800
Automotive equipment 105,000 105,000
Construction in progress 768,700 825,000
----------- -----------
28,711,900 27,760,300
Less accumulated depreciation 15,730,100 14,079,900
----------- -----------
$12,981,800 $13,680,400
=========== ===========
</TABLE>
6
<PAGE> 9
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
4. On February 5, 1996, the Company announced that the Board of Directors
declared a cash dividend of $.06 per share as well as a 10% stock
dividend. Both dividends were distributed on March 15, 1996 to
stockholders of record at the close of business on February 29, 1996.
The cash dividend was paid on the number of shares outstanding prior to
the 10% stock dividend. Stockholders entitled to fractional shares
resulting from the 10% stock dividend received cash in lieu of such
fractional share based on $9.50 per share, the closing price of the
Company's stock on February 29, 1996. Weighted average number of shares
for all periods presented have been restated to reflect the 10% stock
dividend.
5. Repurchase of Common Stock - During the nine months ended September 30,
1996, the Company repurchased (open market purchase) 5,000 shares of
common stock for an aggregate price of $35,000. All of the repurchased
shares are held in treasury for use in conjunction with the Company's
1994 Stock Option Plan and other general corporate purposes.
6. Earnings Per Share - Earnings per share is computed by dividing net
income by the weighted average number of shares outstanding, after
giving effect to the stock dividend described in note 4, during the
respective period.
7. Long-term Debt and Credit Arrangements - Substantially all of the
Company's assets not otherwise specifically pledged as collateral on
existing loans and capital leases are pledged as collateral under the
Company's credit agreements with its primary bank.
8. Reclassification - Certain items have been reclassified in the prior
period consolidated financial statements to conform with the September
30, 1996, presentation.
7
<PAGE> 10
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
RESULTS OF OPERATIONS
QUARTER ENDED SEPTEMBER 30:
The Company reported net income of $26,600 or $.01 per share for the third
quarter ended September 30, 1996 as compared to net income of $172,200 or $.07
per share for the same period in 1995. Net sales decreased $2,043,900 or 18% to
$9,094,300 for the quarter ended September 30, 1996 from $11,138,200 for the
same period in 1995. The primary reason for the decline in sales and net income
is due to a continuing softness in pest populations as a result of unanticipated
weather conditions which began in the second quarter of 1996. As a result, there
was a decline in usage of certain of the Company's products.
Gross profits decreased to $3,692,500 for the three months ended September 30,
1996 from $4,166,900 for the same period in 1995. Despite the decline in overall
gross profits, the gross profit percentage increased by 4% to 41% for the
quarter ended September 30, 1996 from 37% for the quarter ended September 30,
1995. The increase in the gross profit percentage was primarily attributable to
sales mix of products.
Operating expenses, which are net of other income, decreased by $243,200 to
$3,419,900 for the quarter ended September 30, 1996 as compared to $3,663,100
for the same period in 1995.
The differences in operating expenses by specific departmental costs are as
follows:
- Selling and regulatory expenses increased by $202,900 to
$1,104,800 in the third quarter of 1996 from $901,900 in the
third quarter of 1995. Approximately $65,000 of the increase
was incurred upgrading the quality of the Company's product
label guide and promoting the Company's business. Operating
expenses of GemChem, Inc., the Company's marketing subsidiary,
increased approximately $86,000 in connection with the
challenge of obtaining new business as well as maintaining and
increasing business with continuing customers. The balance of
the increase relates to increases in rebates and royalties on
certain of the Company's products.
- General and administrative expenses increased $99,900 to
$918,400 in the third quarter of 1996 from $818,500 in the
third quarter of 1995 primarily attributable to expenses
incurred by Environmental Mediation, Inc. ("EMI"), the
Company's environmental consulting
8
<PAGE> 11
subsidiary, which had just begun operations in the Spring of
1995 and has grown and become fully operational since that
time.
- Research and development expenses decreased by $426,400 from
$1,076,100 in the third quarter of 1995 to $649,700 in the
third quarter of 1996 primarily due to a decrease in costs
incurred to generate scientific data related to registration
of the Company's products. This decrease is primarily
attributable to a decrease in research and development costs
in connection with PCNB, Bidrin(R), and DDVP products.
- Shipping and receiving costs decreased by $119,600 from
$866,600 in the third quarter of 1995 to $747,000 in the third
quarter of 1996 which was primarily attributable to lower
freight costs due to the reduction in sales in the third
quarter of 1996.
Interest costs were $230,400 during the three months ended September 30, 1996 as
compared to $218,500 for the same period in 1995. The average level of borrowing
under the Company's line of credit agreement was $4,687,000 for the third
quarter of 1996 as compared to $5,484,000 for the same period in 1995. The
average level of long-term debt was $6,069,000 for the third quarter of 1996 as
compared to $3,450,000 for the same period in 1995. On a combined basis, the
Company's average debt for the third quarter of 1996 was $10,756,000 as compared
to $8,934,000 for the third quarter of 1995. Although average debt was higher in
the third quarter of 1996 as compared to the same quarter in 1995, lower
effective interest rates in the three months ended September 30, 1996 as
compared to the same period in 1995 result in the relatively small net increase
in interest costs of $11,900 in the third quarter of 1996.
Weather patterns can have an impact on the Company's operations. Weather
conditions influence pest population by impacting gestation cycles for
particular pests and the effectiveness of some of the Company's products, among
other factors. The end user of some of the Company's products may, because of
weather patterns, delay or intermittently disrupt field work during the planting
season which may result in a reduction of the use of some of the Company's
products.
Because of elements inherent to the Company's business, such as differing and
unpredictable weather patterns, crop growing cycles, changes in product mix of
sales, ordering patterns that may vary in timing, and promotional/early order
programs, measuring the Company's performance on a quarterly basis, (gross
profit margins on a quarterly basis may vary significantly) even when such
comparisons are favorable, is not as meaningful an indicator as full-year
comparisons. Because most of the
9
<PAGE> 12
Company's cost structure is fixed, at least in the short-term, the combination
of variable revenue streams, changing product mixes, and a fixed cost structure
results in varying quarterly levels of profitability.
NINE MONTHS ENDED SEPTEMBER 30:
The Company reported net income of $376,600 or $.15 per share for the nine month
period ended September 30, 1996 as compared to net income of $379,000 or $.15
per share for the same period in 1995. Although profits were comparable for the
nine month periods ended September 30, 1996 and 1995, net sales decreased
$5,407,600 or 16% to $29,407,400 for the nine months ended September 30, 1996
from $34,815,000 for the same period in 1995. All of the decrease in sales
occurred during the second and third quarters of 1996 and was primarily due to
unanticipated weather conditions which had an adverse impact on sales of certain
of the Company's pesticide related products. The most significant decreases were
in sales of Bidrin(R) and Naled products which declined by $7,921,000 from 1995
sales levels. Increased sales of Metam Sodium products during the nine months
ended September 30, 1996 helped to offset the declines in sales of Bidrin(R) and
Naled products. The Company was able to generate net income for the nine months
ended September 30, 1996 comparable to net income for the nine months ended
September 30, 1995 due to reductions in operating expenses which are discussed
below.
Gross profits declined to $11,111,700 for the first nine months of 1996 from
$13,164,300 for the same period in 1995. The gross profit margin, however,
remained stable at 38% during the nine months ended September 30, 1996 and 1995.
The stability in the gross profit margin is attributable to the differences in
the sales mix of the Company's products during the nine month periods ended
September 30, 1996 and 1995.
Operating expenses decreased by $1,986,600 to $9,797,400 for the first nine
months of 1996 from $11,784,000 for the same period in 1995.
The differences in operating expenses by specific departmental costs are as
follows:
- Selling and regulatory expenses decreased by $1,012,300 during
the nine months ended September 30, 1996 primarily as a result
of reduced royalties and rebates on decreased sales levels.
- General and administrative expenses increased $417,200 in the
first nine months of 1996 which was primarily attributable to
increases in environmental consulting (which includes EMI) and
outside professional fees.
10
<PAGE> 13
- Research and development expenses decreased $1,694,900 in the
first nine months of 1996 primarily as a result of reduced
costs incurred to generate scientific data related to the
registration of the Company's products. This decrease is
primarily attributable to a decrease in research and
development costs in connection with PCNB, NAA, Bidrin(R),
Metam Sodium and DDVP products.
- Shipping and receiving costs increased by $303,400 primarily
as a result of increased sales activity of Metam Sodium
products as well as increased movement to and expansion of
Metam Sodium storage sites throughout the United States.
Interest costs were $687,300 during the nine months ended September 30, 1996 as
compared to $750,000 for the same period in 1995. The average level of borrowing
under the Company's line of credit agreement was approximately $4,159,000 for
the first nine months of 1996 as compared to $7,073,000 for the same period in
1995. The average level of long-term debt was $6,334,000 for the nine months
ended September 30, 1996 as compared to $3,803,000 for the same period in 1995.
On a combined basis, the Company's average debt for the nine months ended
September 30, 1996 was $10,493,000 as compared to $10,876,000 for the first nine
months of 1995. Lower effective interest rates during 1996 accompanied by
slightly lower average debt account for the reduction in interest costs for the
nine months ended September 30, 1996.
LIQUIDITY AND CAPITAL RESOURCES
Working capital was $17,395,100 at September 30, 1996 reflecting an increase of
$1,700,500 over working capital of $15,694,600 at December 31, 1995. With net
income of $376,600, depreciation and amortization of $1,761,700 and a reduction
in receivables of $6,669,600 the Company generated cash flow of $8,807,900 the
substantial portion of which was used to increase inventories by $3,836,200,
reduce trade accounts payable by $1,363,600 and reduce accrued expenses and
other payables by $2,837,100. Inventories were increased to meet expected sales
forecasts, however, as noted above, actual sales did not achieve forecasted
sales due to the weather's impact on pest populations during the nine months
ended September 30, 1996. It is anticipated that inventories will be liquidated
in the ordinary course of business. The decrease in accrued expenses and other
payables related primarily to payments of product rebates and royalties to
customers and payment of 1995 income tax liabilities. Additionally, the Company
declared and paid cash dividends of $138,000 during the nine months ended
September 30, 1996 and made capital improvements of $951,600. These
expenditures primarily improve and/or maintain the existing capacity of the
Company's manufacturing facility, and address the Company's continual effort to
adapt its manufacturing process to the environmental control standards of its
various controlling agencies.
The Company had $4,900,000 in availability under its fully-secured $10,500,000
long-term line of credit as of September 30,
11
<PAGE> 14
1996, a decrease of $1,700,000 from the amount available of $6,600,000 as of
December 31, 1995. The Company made principal payments on its long-term debt and
capital leases of $1,024,900 during the nine months ended September 30, 1996.
Management believes current financial resources (working capital and short-term
borrowing arrangements) and anticipated funds from operations will be adequate
to meet financial needs during the next twelve months. Management also believes,
to continue to improve its working capital position and maintain flexibility in
financing interim needs, it is prudent to explore alternate sources of
financing.
The Company, from time to time, may discuss forward-looking information. Except
for the historical information contained in this report, all forward-looking
statements are estimates by the Company's management and are subject to various
risks and uncertainties that may cause results to differ from management's
current expectations. Such factors include weather conditions, changes in
regulatory policy, and other risks as detailed from time to time in the
Company's SEC reports and filings. All forward-looking statements, if any, in
this report represent the Company's judgment as of the date of this report. The
Company disclaims, however, any intent or obligation to update forward-looking
statements.
12
<PAGE> 15
PART II. OTHER INFORMATION
The Company was not required to report any matters or changes for any items of
Part II except as disclosed below.
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 27 - FDS
(b) The Company did not file any reports on Form 8-K during the three months
ended September 30, 1996.
13
<PAGE> 16
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.
AMERICAN VANGUARD CORPORATION
Dated: November 13, 1996 By: /s/ Eric G. Wintemute
_________________________________
Eric G. Wintemute
President,
Chief Executive Officer
and Director
Dated: November 13, 1996 By: /s/ J. A. Barry
_________________________________
J. A. Barry
Vice President
Chief Financial Officer,
Treasurer and Director
14
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 417,200
<SECURITIES> 0
<RECEIVABLES> 8,816,400
<ALLOWANCES> 0
<INVENTORY> 12,105,800
<CURRENT-ASSETS> 22,167,600
<PP&E> 28,711,900
<DEPRECIATION> 15,730,100
<TOTAL-ASSETS> 36,115,600
<CURRENT-LIABILITIES> 4,772,500
<BONDS> 11,476,800
0
0
<COMMON> 256,400
<OTHER-SE> 17,952,600
<TOTAL-LIABILITY-AND-EQUITY> 36,115,600
<SALES> 29,407,400
<TOTAL-REVENUES> 29,407,400
<CGS> 18,295,700
<TOTAL-COSTS> 18,295,700
<OTHER-EXPENSES> 9,797,400
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 680,700
<INCOME-PRETAX> 633,600
<INCOME-TAX> 257,000
<INCOME-CONTINUING> 376,600
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 376,600
<EPS-PRIMARY> .15
<EPS-DILUTED> .15
</TABLE>
