<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
------------------
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 0-4781
------
MARKET FACTS, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 36-2061602
- --------------------------------- ------------------------------------
(State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or organization)
3040 West Salt Creek Lane, Arlington Heights, Illinois 60005
- ---------------------------------------------------------- --------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (708) 590-7000
--------------
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 [_]
INDICATE THE NUMBER OF SHARES OUTSTANDING OF EACH OF THE REGISTRANT'S CLASSES OF
COMMON STOCK, AS OF THE LATEST PRACTICABLE DATE.
1,933,769 common shares as of October 23, 1995
----------------------------------------------
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
Market Facts, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
As of September 30, 1995 and December 31, 1994
<TABLE>
<CAPTION>
Assets
------
September 30, December 31,
1995 1994
------------- -----------
<S> <C> <C>
Current Assets:
Cash and cash equivalents $ 1,425,982 $ 911,209
Certificate of deposit 50,000 50,000
Accounts receivable:
Trade, less allowance for doubtful accounts of
$795,005 in 1995 and $668,805 in 1994 9,354,470 9,433,470
Other 78,508 128,232
Notes receivable 72,300 59,037
Revenue earned on contracts in progress
in excess of billings 3,281,906 2,394,591
Deferred income taxes 624,578 624,578
Prepaid expenses and other assets 221,256 435,723
- -----------------------------------------------------------------------------------------------
Total Current Assets $15,109,000 $14,036,840
- -----------------------------------------------------------------------------------------------
Other Assets:
Goodwill, net of accumulated amortization 568,023 599,386
Mail panel acquired, net of accumulated amortization 121,905 182,857
- -----------------------------------------------------------------------------------------------
Total Other Assets $ 689,928 $ 782,243
- -----------------------------------------------------------------------------------------------
Property, at cost 25,901,197 24,539,362
Less accumulated depreciation and amortization (9,270,770) (7,676,462)
- -----------------------------------------------------------------------------------------------
Net Property $16,630,427 $16,862,900
- -----------------------------------------------------------------------------------------------
Total Assets $32,429,355 $31,681,983
===============================================================================================
</TABLE>
Page 1
<PAGE>
Market Facts, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
As of September 30, 1995 and December 31, 1994
<TABLE>
<CAPTION>
Liabilities and Stockholders' Equity
------------------------------------
September 30, December 31,
1995 1994
------------- ------------
<S> <C> <C>
Current Liabilities:
Accrued expenses $ 5,406,044 $ 4,393,196
Billings in excess of revenues earned
on contracts in progress 2,347,847 3,712,487
Accounts payable 898,017 995,644
Income taxes 197,958 684,950
Current portion of note payable for acquisition of MFCL 339,127 339,127
Current portion of obligations under capital leases 216,765 185,026
Current portion of long-term debt 102,190 102,190
- -----------------------------------------------------------------------------------------------------------------------------------
Total Current Liabilities $ 9,507,948 $10,412,620
- -----------------------------------------------------------------------------------------------------------------------------------
Long-Term Liabilities:
Long-term debt 10,456,473 10,532,183
Obligations under capital leases, noncurrent portion 605,643 581,710
Note payable for acquisition of MFCL, noncurrent portion 339,126 339,126
Deferred income taxes 39,122 39,122
Other long-term liabilities 2,531 31,037
- -----------------------------------------------------------------------------------------------------------------------------------
Total Long-Term Liabilities $11,442,895 $11,523,178
- -----------------------------------------------------------------------------------------------------------------------------------
Total Liabilities $20,950,843 $21,935,798
- -----------------------------------------------------------------------------------------------------------------------------------
Stockholders' Equity:
Preferred stock, no par value;
500,000 shares authorized; none issued $ --- $ ---
Common stock, $1 par value; 5,000,000 shares authorized;
2,101,237 and 1,973,241 shares issued in 1995 and 1994, respectively 2,101,237 1,973,241
Capital in excess of par value 2,309,387 1,765,776
Cumulative foreign currency translation (48,315) (100,391)
Retained earnings 8,973,364 8,021,066
- -----------------------------------------------------------------------------------------------------------------------------------
$13,335,673 $11,659,692
- -----------------------------------------------------------------------------------------------------------------------------------
Less 167,468 and 184,402 shares in 1995 and 1994, respectively,
of treasury common stock, at cost (1,189,029) (1,310,134)
Less other transactions involving common stock (668,132) (603,373)
- -----------------------------------------------------------------------------------------------------------------------------------
Total Stockholders' Equity $11,478,512 $ 9,746,185
- -----------------------------------------------------------------------------------------------------------------------------------
Total Liabilities and Stockholders' Equity $32,429,355 $31,681,983
===================================================================================================================================
</TABLE>
Page 2
<PAGE>
<TABLE>
<CAPTION>
Market Facts, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings
For The Three Months Ended September 30, 1995 and 1994
Three Months Ended September 30,
--------------------------------
1995 1994
------------ ------------
<S> <C> <C>
Revenue $15,880,200 $16,203,088
- ----------------------------------------------------------------------------------------------------------------
Direct Costs:
Payroll $ 3,439,628 $ 3,396,415
Other expenses 5,462,041 5,549,185
- ----------------------------------------------------------------------------------------------------------------
Total $ 8,901,669 $ 8,945,600
- ----------------------------------------------------------------------------------------------------------------
Gross Margin $ 6,978,531 $ 7,257,488
- ----------------------------------------------------------------------------------------------------------------
Operating Expenses:
Selling $ 607,775 $ 528,118
General and administrative 4,978,938 5,378,691
Contributions to profit-sharing and employee stock ownership plans 114,478 177,446
- ----------------------------------------------------------------------------------------------------------------
Total $ 5,701,191 $ 6,084,255
- ----------------------------------------------------------------------------------------------------------------
Income from operations $ 1,277,340 $ 1,173,233
- ----------------------------------------------------------------------------------------------------------------
Other Income (Expense):
Interest expense $ (281,866) $ (340,655)
Interest income 22,370 18,015
Other income, net 11,740 7,468
- ----------------------------------------------------------------------------------------------------------------
Total $ (247,756) $ (315,172)
- ----------------------------------------------------------------------------------------------------------------
Income Before Provision For Income Taxes $ 1,029,584 $ 858,061
Provision For Income Taxes 481,038 342,150
- ----------------------------------------------------------------------------------------------------------------
Net Income $ 548,546 $ 515,911
================================================================================================================
Earnings per share $ .28 $ .27
================================================================================================================
Common and common equivalent shares 1,984,258 1,892,623
================================================================================================================
Cash dividends declared $ .10 $ .07
================================================================================================================
</TABLE>
Page 3
<PAGE>
<TABLE>
<CAPTION>
Market Facts, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings
For The Nine Months Ended September 30, 1995 and 1994
Nine Months Ended September 30,
-------------------------------
1995 1994
----------- ------------
<S> <C> <C>
Revenue $47,545,204 $40,007,625
- ---------------------------------------------------------------------------------------------------------------
Direct Costs:
Payroll $10,295,817 $ 9,008,379
Other expenses 16,356,023 12,947,953
- ---------------------------------------------------------------------------------------------------------------
Total $26,651,840 $21,956,332
- ---------------------------------------------------------------------------------------------------------------
Gross Margin $20,893,364 $18,051,293
- ---------------------------------------------------------------------------------------------------------------
Operating Expenses:
Selling $ 1,690,883 $ 1,587,579
General and administrative 15,130,776 14,077,004
Contributions to profit-sharing and employee stock ownership plans 540,866 327,542
- ---------------------------------------------------------------------------------------------------------------
Total $17,362,525 $15,992,125
- ---------------------------------------------------------------------------------------------------------------
Income from operations $ 3,530,839 $ 2,059,168
- ---------------------------------------------------------------------------------------------------------------
Other Income (Expense):
Interest expense $ (854,909) $ (937,888)
Interest income 45,859 37,634
Equity in income of MFCL --- 33,668
Other income, net 64,711 38,744
- ---------------------------------------------------------------------------------------------------------------
Total $ (744,339) $ (827,842)
- ---------------------------------------------------------------------------------------------------------------
Income Before Provision For Income Taxes $ 2,786,500 $ 1,231,326
Provision For Income Taxes 1,306,294 491,094
- ---------------------------------------------------------------------------------------------------------------
Net Income $ 1,480,206 $ 740,232
===============================================================================================================
Earnings per share $ .77 $ .39
===============================================================================================================
Common and common equivalent shares 1,929,073 1,899,891
===============================================================================================================
Cash dividends declared $ .28 $ .21
===============================================================================================================
</TABLE>
Page 4
<PAGE>
Market Facts, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For The Nine Months Ended September 30, 1995 and 1994
<TABLE>
<CAPTION>
Nine Months Ended September 30,
-------------------------------
1995 1994
----------- -----------
<S> <C> <C>
Cash Flows From Operating Activities:
Net income $ 1,480,206 $ 740,232
Adjustments to reconcile net income to net cash provided by
(used in) operating activities:
Depreciation and amortization 1,683,605 1,557,606
Undistributed earnings of MFCL --- 31,304
Vesting of restricted stock and demand notes receivable 41,574 35,625
Net gain on disposal of property (28,650) (51,870)
Change in assets and liabilities:
Accounts receivable 165,344 (751,246)
Prepaid expenses and other assets 216,724 (44,574)
Billings in excess of (less than) revenues earned on
contracts in progress (2,249,499) (1,953,488)
Accounts payable and accrued expenses 893,450 (176,099)
Income taxes (487,429) 245,628
- --------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) operating activities $ 1,715,325 $ (366,882)
- --------------------------------------------------------------------------------------------------------------------
Cash Flows From Investing Activities:
Purchases of property (1,173,303) (1,021,495)
Investment in notes receivable (219,445) (156,048)
Proceeds from notes receivable 99,849 156,077
Proceeds from the sale of property 45,157 123,792
Payment for acquisition of MFCL, net of cash acquired --- (134,964)
- --------------------------------------------------------------------------------------------------------------------
Net cash used in investing activities $(1,247,742) $(1,032,638)
- --------------------------------------------------------------------------------------------------------------------
Cash Flows From Financing Activities:
Proceeds from short-term borrowings $ 2,000,000 $ 5,700,000
Repayment of short-term borrowings (2,000,000) (4,100,000)
Proceeds from exercise of stock options 652,855 32,937
Dividends paid (527,908) (374,991)
Reduction in obligations under capital leases and long-term debt (241,424) (243,671)
Proceeds from the sale of treasury stock 139,857 ---
- --------------------------------------------------------------------------------------------------------------------
Net cash provided by financing activities $ 23,380 $ 1,014,275
- --------------------------------------------------------------------------------------------------------------------
Effect of exchange rate changes on cash $ 23,810 $ (8,216)
- --------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in cash and cash equivalents $ 514,773 $ (393,461)
Cash and cash equivalents at beginning of period 911,209 772,986
- --------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of period $ 1,425,982 $ 379,525
====================================================================================================================
Cash Paid During The Period For:
Interest $ 837,081 $ 905,519
Income taxes $ 1,793,723 $ 275,487
====================================================================================================================
Supplemental Schedule of Noncash Financing Activity:
Capital lease obligations incurred on lease of equipment $ 208,465 $ 189,948
Issuance of note payable for acquisition of MFCL $ --- $ 678,253
====================================================================================================================
</TABLE>
Page 5
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Note 1 - Basis of Presentation
- ------------------------------
The accompanying unaudited condensed consolidated financial statements of Market
Facts, Inc. and Subsidiaries (the Company) have been prepared in accordance with
instructions to Form 10-Q. The results of operations for interim periods are
not necessarily indicative of the results to be expected for the entire year.
For further information regarding the Company's most recent completed fiscal
years, refer to the consolidated financial statements included in the Company's
Annual Report on Form 10-K for the year ended December 31, 1994.
Note 2 - Adjustments
- --------------------
The information furnished herein includes all adjustments, consisting of normal
recurring adjustments, which are, in the opinion of management, necessary for a
fair presentation of the interim financial statements.
Note 3 - Foreign Currency Translation
- -------------------------------------
Assets and liabilities of Market Facts of Canada, Ltd. (MFCL), the Company's
only foreign subsidiary, have been translated using the exchange rate in effect
at the balance sheet date. MFCL's results of operations are translated using
the average exchange rate prevailing throughout the period. Resulting
translation gains and losses are reported as a component of stockholders'
equity.
Note 4 - Revenue Recognition
- ----------------------------
The Company recognizes revenue under the percentage of completion method of
accounting. Revenue on client projects is recognized as services are performed.
Losses expected to be incurred on jobs in progress are charged to income as soon
as such losses are known. Revenue earned on contracts in progress in excess of
billings is classified as a current asset. Amounts billed in excess of revenue
earned are classified as a current liability. Client projects are expected to
be completed within a twelve month period.
Page 6
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.
Liquidity and Capital Resources
- -------------------------------
The ratio of current assets to current liabilities was 1.6 to 1 as of September
30, 1995 versus 1.3 to 1 as of December 31, 1994. The improvement in the ratio
is primarily attributable to a reduction in net billings in excess of revenues
earned on contracts in progress of $2,249,499, due to less timely billings on
contracts in progress, an increase in cash of $514,773 and a reduction in income
taxes payable of $487,429. These items were partially offset by an increase in
accounts payable and accrued expenses of $893,450.
Cash increased by $514,773 from December 31, 1994 to September 30, 1995. This
was primarily the result of cash generated from operating activities of
$1,715,325 and proceeds from the exercise of Company stock options of $652,855.
The increase in cash was partially offset by purchases of property of $1,173,303
and payment of dividends of $527,908.
The Company maintains an established $4,000,000 bank line of credit which is
renewed annually. The Company believes that cash flow from future operations,
its ability to secure additional leases and borrowings available from its line
of credit will be adequate to fund property requirements, investing activities
and growth for the foreseeable future.
Results of Operations
- ---------------------
Comparison of Third Quarter 1995 to Third Quarter 1994
- ------------------------------------------------------
During the third quarter of 1995, the Company had revenue of $15,880,200, a
decrease of 2.0% over the same period in 1994.
Gross margin for the third quarter of 1995 was $6,978,531, a decrease of 3.8%
over the same period in 1994. The decrease in gross margin was due to the
decline in revenue. Gross margin as a percentage of revenue was 43.9% during
the third quarter of 1995 compared to 44.8% for the same period in 1994. The
decline in the gross margin percentage is primarily attributable to two factors.
First, the Company is allocating a greater share of internal operating costs
directly to client research projects, though this effect is partially offset by
the Company's ability to recover the additional direct costs through price
increases, and second, the Company has experienced growth in certain types of
business which yield lower gross margin percentages but which require only a
minimal increase in operating expenses.
Operating expenses for the third quarter of 1995 declined by $383,064, a
decrease of 6.3% compared to the same period in 1994. Operating expenses as a
percentage of revenue declined from 37.5% in 1994 to 35.9% in 1995. These
decreases are due primarily to a lower accrual for year end employee bonuses and
an increase in internal operating costs being allocated to client research
projects.
Provision for income taxes for the third quarter of 1995 reflects an effective
income tax rate of 46.7% versus 39.9% in 1994. The increase in the effective
rate is primarily due to higher state and local income taxes.
Net income for the third quarter of 1995 was $548,546 or 3.5% of revenue
compared with $515,911 and 3.2% of revenue during the same period in 1994.
Page 7
<PAGE>
Comparison of First Nine Months of 1995 to First Nine Months of 1994
- --------------------------------------------------------------------
During the first nine months of 1995, the Company had revenue of $47,545,204, an
increase of 18.8% over the same period in 1994. The growth in revenue was due
primarily to higher levels of utilization of research products and services that
are proprietary to the Company and the acquisition of MFCL.
Gross margin for the first nine months of 1995 was $20,893,364, an increase of
15.7% over the same period in 1994. The increase in gross margin was due to the
growth in revenue. Gross margin as a percentage of revenue was 43.9% during the
first nine months of 1995 compared to 45.1% for the same period in 1994. The
decline in the gross margin percentage is primarily attributable to two factors.
First, the Company is allocating a greater share of internal operating costs
directly to client research projects, though this effect is partially offset by
the Company's ability to recover the additional direct costs through price
increases, and second, the Company has experienced growth in certain types of
business which yield lower gross margin percentages but which require only a
minimal increase in operating expenses.
Operating expenses for the first nine months of 1995 rose by $1,370,400, an
increase of 8.6% compared to the same period in 1994. This increase is due
primarily to the increased level of business activity offset by the increase in
internal operating costs being allocated to client research projects. However,
operating expenses as a percentage of revenue declined from 40.0% in 1994 to
36.5% in 1995 primarily as a result of the increase in internal operating costs
being allocated to client research projects and the Company's ability to control
overhead payroll expense.
Provision for income taxes for the first nine months of 1995 reflects an
effective income tax rate of 46.9% versus 39.9% in 1994. The increase in the
effective rate is primarily due to the addition of foreign income taxes for MFCL
and higher state and local income taxes.
Net income for the first nine months of 1995 was $1,480,206 or 3.1% of revenue
compared with $740,232 and 1.9% of revenue during the same period in 1994.
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits.
See Index to Exhibits immediately following the signature page.
(b) Reports on Form 8-K.
None.
Page 8
<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.
Market Facts, Inc.
-------------------------------------------------
(Registrant)
Date: October 23, 1995 Timothy J. Sullivan
--------------------- -------------------------------------------------
Timothy J. Sullivan
Vice President, Treasurer and Assistant Secretary
(Principal Accounting Officer)
Date: October 23, 1995 Glenn W. Schmidt
--------------------- -------------------------------------------------
Glenn W. Schmidt
Executive Vice President, Assistant Secretary
and Assistant Treasurer
(Principal Financial Officer)
Page 9
<PAGE>
INDEX TO EXHIBITS
Exhibit Number Description
- -------------- -----------
(2)\(1)\ Stock Purchase Agreement by and among Market Facts, Inc. and
John C. Robertson and Roberta Robertson dated as of April 27,
1994.
(3)(a)\(5)\ Composite Certificate of Incorporation as Amended and Currently
in Effect.
(3)(b)\(3)\ By-laws as Amended and Currently in Effect.
(4)(a)\(5)\ Article Fourth of Certificate of Incorporation is included in
Exhibit (3)(a) above.
(4)(b)\(6)\ The Stockholder Rights Plan.
(10.1)\(8)\ Term Note dated February 23, 1995 between Market Facts, Inc. and
Verne Churchill.
(10.2)\(8)\ Term Note dated February 23, 1995 between Market Facts, Inc. and
Lawrence Labash.
(10.3)\(8)\ Term Note dated February 23, 1995 between Market Facts, Inc. and
Thomas Payne.
(10.4)\(8)\ Term Note dated February 23, 1995 between Market Facts, Inc. and
Glenn Schmidt.
(10.5)\(8)\ Term Note dated March 1, 1995 between Market Facts, Inc. and
Stephen J. Weber.
(10.6)\(7)\ Promissory Note dated April 1, 1994 between Market Facts, Inc.
and Stephen J. Weber.
(10.7)\(1)\ Employment Agreement by and among Market Facts of Canada, Ltd.,
Market Facts, Inc. and John C. Robertson dated as of April 14,
1994.
(10.8)\(4)\ 1982 Executive Incentive Stock Option Plan.
(10.9)\(3)\ Mortgage and Security Agreement dated April 11, 1990 between
American National Bank and Trust Company as Trustee under Trust
No. 110201-04 and The Manufacturers Life Insurance Company
together with Mortgage Note.
(10.10)\(2)\ Unsecured Note and Procedures Letter between Market Facts, Inc.
and Harris Trust and Savings Bank.
(10.11)\(2)\ Employment Agreement with Verne B. Churchill.
(10.12)\(2)\ Employment Agreement with Lawrence W. Labash.
(10.13)\(2)\ Employment Agreement with Timothy Q. Rounds.
(10.14)\(2)\ Employment Agreement with Glenn W. Schmidt.
Page 10
<PAGE>
Exhibit Number Description
-------------- -----------
(10.15)\(2)\ Employment Agreement with Sanford M. Schwartz.
(10.16)\(2)\ Indemnity Agreement with Jack R. Wentworth.
Substantially identical agreements were also entered into
with the following directors:
William W. Boyd John C. Robertson
Verne B. Churchill Timothy Q. Rounds
Lawrence W. Labash Glenn W. Schmidt
Thomas H. Payne Sanford M. Schwartz
Karen E. Predow-James Wesley S. Walton
(27) Financial Data Schedule.
_____________________
(1) Incorporated by reference to Registrant's Quarterly Report on Form 10-Q for
the quarterly period ended March 31, 1994.
(2) Incorporated by reference to Registrant's Quarterly Report on Form 10-Q for
the quarterly period ended September 30, 1994.
(3) Incorporated by reference to Registrant's Annual Report on Form 10-K for
its fiscal year ended December 31, 1992.
(4) Incorporated by reference to Exhibit No. 10(d) of Registrant's Annual
Report on Form 10-K for its fiscal year ended December 31, 1981, commission
file number 0-4781.
(5) Incorporated by reference to Registrant's Annual Report on Form 10-K/A-1
for its fiscal year ended December 31, 1993.
(6) Incorporated by reference to Exhibit No. 4 of Registrant's Form 8-K dated
August 7, 1989, commission file number 0-4781.
(7) Incorporated by reference to Registrant's Quarterly Report on Form 10-Q/A-1
for the quarterly period ended June 30, 1994.
(8) Incorporated by reference to Registrant's Quarterly Report on Form 10-Q for
the quarterly period ended March 31, 1995.
Page 11
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 1,425,982
<SECURITIES> 50,000
<RECEIVABLES> 10,149,475
<ALLOWANCES> 795,005
<INVENTORY> 0
<CURRENT-ASSETS> 15,109,000
<PP&E> 25,901,197
<DEPRECIATION> 9,270,770
<TOTAL-ASSETS> 32,429,355
<CURRENT-LIABILITIES> 9,507,948
<BONDS> 0
<COMMON> 2,101,237
0
0
<OTHER-SE> 9,377,275
<TOTAL-LIABILITY-AND-EQUITY> 32,429,355
<SALES> 47,545,204
<TOTAL-REVENUES> 47,545,204
<CGS> 26,651,840
<TOTAL-COSTS> 26,651,840
<OTHER-EXPENSES> 17,362,525
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 854,909
<INCOME-PRETAX> 2,786,500
<INCOME-TAX> 1,306,294
<INCOME-CONTINUING> 1,480,206
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,480,206
<EPS-PRIMARY> .77
<EPS-DILUTED> .77
</TABLE>
