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 March 31, 1999
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 1-8325
MYR GROUP INC.
(Exact name of registrant as specified in its charter)
Delaware 36-3158643
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
1701 W. Golf Road, Tower 3, Suite 1012, Rolling Meadows, Illinois 60008
(Address of principal executive offices) (Zip Code)
(847) 290-1891
Registrant's telephone number, include area code
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 and
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
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of May 11, 1999: 5,969,868
<PAGE>
MYR GROUP INC.
I N D E X
PART I. Financial Information Page No.
--------------------- --------
Item 1. Financial Statements
Condensed Consolidated Balance Sheets -
March 31, 1999 and December 31, 1998 2
Condensed Consolidated Statements of Income -
Three Months Ended March 31, 1999 and 1998 3
Condensed Consolidated Statements of Cash Flows -
Three Months Ended March 31, 1999 and 1998 4
Notes to Condensed Consolidated Financial Statements 5-7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 8-10
PART II. Other Information
Item 1. Legal Proceedings 10
Item 6. Exhibits and Reports on Form 8-K 10
SIGNATURE 11
<PAGE>
<TABLE>
Part I, Item 1
Financial Information
MYR Group Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
<CAPTION>
- ----------------------------------------------------------------------------
March 31 Dec. 31
1999 1998
--------- ---------
(Unaudited) *
- ----------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 530 $ 1,372
Contract receivables including retainage 73,280 68,112
Costs and estimated earnings in excess of
billings on uncompleted contracts 16,151 17,092
Deferred income taxes 6,153 6,153
Other current assets 637 239
---------------------
Total current assets 96,751 92,968
---------------------
Property and equipment: 56,736 56,706
Less accumulated depreciation 41,378 40,604
---------------------
15,358 16,102
---------------------
Other assets 1,399 1,129
---------------------
Total assets $ 113,508 $ 110,199
=====================
<PAGE>
LIABILITIES
Current Liabilities:
Current maturities of long-term debt $ 9,183 $ 7,813
Accounts payable 16,959 14,135
Billings in excess of costs and estimated
earnings on uncompleted contracts 11,257 9,448
Accrued insurance 14,809 13,868
Other current liabilities 14,510 17,528
---------------------
Total current liabilities 66,718 62,792
---------------------
Deferred income taxes 1,052 1,052
Other liabilities 393 393
Long-term debt:
Promissory notes and other debt 916 917
Industrial revenue bond 250 250
Subordinated convertible debentures 3,632 5,447
---------------------
Total long-term debt 4,798 6,614
SHAREHOLDERS' EQUITY
Common stock and additional paid-in capital 7,987 7,009
Retained earnings 35,887 34,335
Restricted stock awards and shareholders' notes
receivable (3,327) (1,996)
---------------------
Total shareholders' equity 40,547 39,348
---------------------
Total liabilities and shareholders' equity $ 113,508 $ 110,199
=====================
*Condensed from audited financial statements
- ----------------------------------------------------------------------------
The "Notes to Condensed Consolidated Financial Statements" are an integral
part of this statement.
</TABLE>
<PAGE>
<TABLE>
MYR Group Inc.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands except per share amounts)
(Unaudited)
- ----------------------------------------------------------------------------
Three Months Ended March 31 1999 1998
- ----------------------------------------------------------------------------
<S> <C> <C>
Contract revenue $ 107,327 $ 110,671
Contract cost 95,569 101,742
-------------------------
Gross profit 11,758 8,929
Selling, general and administrative expenses 8,597 6,739
-------------------------
Income from operations 3,161 2,190
Other income (expense)
Interest income 2 4
Interest expense (275) (445)
Gain on sale of property and equipment 91 47
Miscellaneous (42) 7
-------------------------
Income before taxes 2,937 1,803
Income tax expense 1,175 721
-------------------------
Net income $ 1,762 $ 1,082
=========================================================================
Earnings per share:
Basic $ .31 $ .20
=========================
Diluted $ .27 $ .17
=========================
Dividends per common share $ .0375 $ .035
=========================
Average number of shares outstanding:
Basic 5,740 5,548
=========================
Diluted 6,639 6,621
=========================
- ----------------------------------------------------------------------------
The "Notes to Condensed Consolidated Financial Statements" are
an integral part of this statement.
</TABLE>
<PAGE>
<TABLE>
MYR Group Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
- -------------------------------------------------------------------------
Three Months Ended March 31 1999 1998
- -------------------------------------------------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATIONS
Net income $ 1,762 $ 1,082
Adjustments to reconcile net income to
cash flows from operations
Depreciation and amortization 905 1,248
Amortization of unearned stock awards 84 52
Gain from disposition of assets (91) (47)
Changes in assets and liabilities (546) (8,623)
-------------------------
Cash flows from operations 2,114 (6,288)
-------------------------
CASH FLOWS FROM INVESTMENTS
Expenditures for property and equipment (202) (952)
Proceeds from disposition of assets 101 59
-------------------------
Cash flows from investments (101) (893)
-------------------------
CASH FLOWS FROM FINANCING
Proceeds (repayments) of long term debt (445) 4,156
Proceeds from exercise of stock options 937 8
Issuance of shareholder notes (1,645) -
Purchase of treasury stock (1,491) -
Decrease in deferred compensation - 4
Dividends paid (211) ( 199)
-------------------------
Cash flows from financing (2,855) 3,969
-------------------------
Decrease in cash and cash equivalents (842) (3,212)
Cash and cash equivalents at beginning
of year 1,372 3,757
-------------------------
Cash and cash equivalents at end of period $ 530 $ 545
=========================
- -------------------------------------------------------------------------
The "Notes to Condensed Consolidated Financial Statements" are an
integral part of this statement.
</TABLE>
<PAGE>
MYR Group Inc.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1 - Basis of Presentation
The condensed consolidated balance sheets, statements of income and
statements of cash flows include the accounts of the Company and its
subsidiaries. All material intercompany balances and transactions have
been eliminated.
The financial information included herein is unaudited; however, such
information reflects all adjustments (consisting solely of normal
recurring adjustments) which are, in the opinion of management, necessary
for a fair presentation of results for the interim period.
The results of operations for the three month period ended March 31, 1999
are not necessarily indicative of the results to be expected for the full
year.
2 - Earnings Per Share
Basic and diluted weighted average shares outstanding and earnings per
share on net income are as follows:
<TABLE>
Three months ended March 31
---------------------------
Share Data: 1999 1998
----- -----
<S> <C> <C>
Basic Shares 5,740 5,548
Common equivalent shares 540 714
Shares assumed converted 359 359
----- -----
Diluted shares 6,639 6,621
===== =====
Three months ended March 31
---------------------------
1999 1998
Total Per Share Total Per Share
------- --------- ------- ----------
<S> <C> <C> <C> <C>
Net Income:
Basic $ 1,762 $ 0.31 $ 1,082 $ 0.20
Interest on convertible
subordinated shares 22 22
------- -------
Diluted $ 1,784 $ 0.27 $ 1,104 $ 0.17
======= =======
</TABLE>
<PAGE>
3 - Supplemental Quarterly Financial Information (Unaudited)
(Dollars in thousands, except per share amounts)
<TABLE>
1999 1998
------- --------------------------------------------
Mar. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Year
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Contract revenue $107,327 $110,671 $109,666 $122,282 $116,724 $459,343
Gross profit 11,758 8,929 11,053 12,224 13,014 45,220
Net income 1,762 1,082 2,071 2,285 2,450 7,888
Earnings per share -
Basic: 0.31 0.20 0.37 0.40 0.43 1.40
Earnings per share -
Diluted: 0.27 0.17 0.31 0.34 0.38 1.20
Dividends paid per
share 0.0375 0.035 0.035 0.035 0.035 0.14
Market price:
High 12.00 12.81 14.25 16.88 12.88 16.88
Low 10.06 11.31 11.31 10.69 10.13 10.13
</TABLE>
4 - Pending Accounting Pronouncements
In 1998, the Financial Accounting Standards Board issued SFAS No. 133,
"Accounting for Derivative Instruments and Hedging Activities". SFAS No.
133 establishes accounting and reporting standards for derivative
instruments, including certain derivative instruments embedded in other
contracts, (collectively referred to as derivatives) and for hedging
activities. This standard is effective for years beginning after June 15,
1999. The Company believes the implementation of this pronouncement will
not have a material impact on the Company's reported financial position,
results of operations and cash flows.
<PAGE>
5. Segment Reporting
The Company adopted SFAS No. 131, "Disclosures about Segments of an
Enterprise and Related Information", during the fourth quarter of 1998.
SFAS No. 131 established standards for reporting information about
operating segments in annual financial statements and requires selected
information about operating segments in interim financial reports issued
to stockholders. Operating segments are defined as components of an
enterprise about which separate financial information is available that
is evaluated regularly by the chief operating decision maker, or decision
making group, in deciding how to allocate resources and in assessing
performance. The adoption of SFAS No. 131 did not affect results of
operations or financial position, but did affect the disclosure of
segment information.
The Company is engaged primarily in two segments: infrastructure services
and commercial/industrial construction. The accounting policies of the
operating segments are the same as those described in the summary of
significant accounting policies except that the financial results have
been prepared using a management approach. This approach is consistent
with the basis and manner in which management internally disaggregates
financial information for the purpose of assisting in making internal
operating decisions and is exclusive of corporate selling, general and
administrative expenses, net interest expense and other income.
Identifiable assets include all assets directly identified with the
reportable segments including retentions, accounts receivable, property,
equipment and costs and estimated earnings in excess of billings on
uncompleted contracts. Corporate assets include cash, deferred tax
assets, and other assets that are corporate in nature.
<TABLE>
Infrastructure Commercial/ Corporate
Services Industrial and Other Consolidated
--------- --------- --------- ------------
<S> <C> <C> <C> <C>
Three months ended
March 31, 1999
------------------
Contract revenue $ 73,101 $ 34,226 $ - $ 107,327
Depreciation and
amortization 875 30 84 989
Income before taxes 5,932 542 (3,537) 2,937
Segment assets 65,950 39,301 8,257 113,508
Capital expenditures 181 21 - 202
Three months ended
March 31, 1998
------------------
Contract revenue 50,955 59,716 - 110,671
Depreciation and
amortization 1,168 80 52 1,300
Income before taxes 2,469 1,915 (2,581) 1,803
Segment assets 55,909 60,293 4,587 120,789
Capital expenditures 902 50 - 952
</TABLE>
<PAGE>
Part I Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
for the Three Months Ending March 31, 1999
Results of Operations
Revenue for the quarter was $107.3 million, compared to $110.7 million in
1998. Revenues for the infrastructure segment increased 43.5% over the
prior year. Commercial/industrial revenues were essentially flat with the
prior year after excluding the 1998 revenues from the major hotel and
casino project in Las Vegas, NV that was completed in late 1998.
Gross profit for the quarter was $11.8 million, compared to $8.9 million
in 1998, or an increase of 31.7%. Gross profit as a percentage of
revenue was 11.0% compared to 8.1% in 1998. The 1999 gross profit
percentage increased primarily due to improved productivity in the
infrastructure services business and the completion of a relatively low
margin, cost-plus fixed-fee hotel and casino project in Las Vegas, Nevada
in late 1998. Margin percentages for infrastructure services were
favorably impacted by weather conditions more conducive to outdoor
construction activity during the first quarter of 1999 as compared to the
first quarter last year.
Revenue and gross profit comparisons from quarter to quarter and
comparable quarters of different periods may be impacted by variables
beyond the control of the Company. Such variables include unusual or
unseasonable weather and delays in receipt of construction materials on
projects where the materials are provided to the Company by its clients.
The different mix of the Company's work from period to period can impact
the gross margin percentage. As the percentage of revenue derived from
projects in which the Company supplies materials increases, the gross
profit percentage will generally decrease. As the percentage of revenue
derived from cost-plus work increases, margins may also decrease since
this work involves lower financial risk. Finally, since the Company's
revenues are derived principally from providing construction labor
services, insurance costs, particularly for workers' compensation, are a
significant factor in the Company's contract cost structure.
Fluctuations in insurance reserves for claims under the retrospective
rated insurance programs can have a significant impact on gross margins,
either upward or downward, in the period in which such insurance reserve
adjustments are made.
Selling, general and administrative expenses for the quarter increased
27.6% to $8.6 million, compared to $6.7 million in 1998. The increase
reflects increased training related costs associated with new management
development programs, higher professional fees, costs related to
additional personnel, and higher incentive compensation accruals on
improved profit levels in comparison to the prior year.
Net interest expense for the quarter was $273,000 compared to $441,000 in
1998. This decrease was primarily due to lower average outstanding bank
debt levels in 1999 due to the reduced retention receivable balances on
the major hotel and casino project in Las Vegas, NV.
<PAGE>
Gain on sale of property and equipment was $91,000 compared to $47,000 in
1998. The 1999 gain reflects sales and disposals in our continuing
efforts to modernize the equipment fleet.
Other expense for the quarter was $42,000 compared to other income of
$7,000 in 1998 and consisted primarily of bank fees, offset by cash
discounts.
Income tax expense for the quarter was $1.2 million compared to $721,000
in 1998. As a percentage of income, the effective rate was 40% in 1999
and 1998.
The Company's backlog at March 31, 1999 was $149.4 million, compared to
$140.1 million at December 31, 1998, and $136.5 million at March 31,
1998. Substantially all the current backlog will be completed within
twelve months and approximately 80% will be completed by December 31,
1999.
Liquidity and Capital Resources
The Company has a $20 million revolving credit facility. As of March 31,
1999, there was $6.5 million outstanding under the revolving credit
facility. The Company has outstanding letters of credit with Banks
totaling $4.7 million. The Company anticipates that its credit facility,
cash balances and internally generated cash flows will continue to be
sufficient to fund operations, capital expenditures and debt service
requirements. The Company is also confident that its financial condition
will allow it to meet long-term capital requirements.
In March 1999, the Company's Board of Directors authorized the purchase
of up to 750,000 shares of its common stock. In 1999 and 1998, purchases
under the prior stock repurchase program totaled 144,808 and 19,494
shares at a cost of $1,492,000 and $248,000, respectively.
In March 1999, the Company loaned two officers $1,645,000 in total for
the exercise cost and tax liability associated with exercising options on
347,225 shares that were expiring in 1999. The portion related to the
exercise price, $886,000, is classified in stockholders' equity and the
balance that relates to the withholding taxes paid is included in other
assets.
Capital expenditures for the quarter were $202,000 compared to $952,000
in 1998. Capital expenditures during these periods were used for normal
property and equipment additions, replacements and upgrades. Proceeds
from the disposal of property and equipment for the quarter amounted to
$101,000 and $59,000 in 1998. The Company plans to spend approximately
$5.5 million on capital improvements during 1999.
Cash flows provided from operations amounted to $2.1 million, which was
used for net capital expenditures of $101,000, the purchase of treasury
stock of $1.5 million, dividends paid of $211,000, and the financing of
shareholder stock option exercises of $1.6 million. The Company's
financial condition continues to be strong at March 31, 1999, with
working capital of $30.0 million compared to $30.2 million at December
31, 1998.
<PAGE>
Year 2000 Compliance
The "Year 2000 problem" arose because many existing computer programs use
only the last two digits to refer to a year. Therefore, these computer
programs do not properly recognize a year that begins with "20" instead
of the familiar "19." If not corrected, many computer applications could
fail or create erroneous results. The extent of the potential impact of
the Year 2000 problem is not yet known, and if not timely corrected, it
could affect the global economy.
State of Readiness
In 1997, the Company established an organization wide project to identify
non-compliant items, formulate corrective actions and to implement these
changes to mitigate the year 2000 issue. The Company has identified
three categories of components that require attention:
1. Information technology ("IT") systems, such as mainframes, midranges,
personal computers, software and networks
2. Non-IT systems such as equipment, machinery, climate control, security
and telephone systems, which may contain micro-controllers with
embedded technology
3. Third party IT and Non-IT systems
The table below summarizes the estimated completion percentages of the
three categories and stages that are being undertaken to mitigate the
Year 2000 issue.
<TABLE>
Identification Formulation Implementation
of material of of Planned
items corrective corrective Completion
actions actions
---- ---- --- ---------------
<S> <C> <C> <C> <C>
IT systems 100% 100% 95% September, 1999
Non-IT systems 100% 90% 90% September, 1999
Third party systems 100% 90% 90% September, 1999
</TABLE>
Although the Company has contacted its major suppliers to determine their
readiness regarding the Year 2000 issue and has been assured that they
are working to mitigate its effects, the Company has no way of
determining what level of compliance they will attain by the year 2000.
The Company is currently in the process of contacting its major customers
to evaluate their planned level of compliance. Upon receiving the
responses, the Company will formulate corrective actions. There is no
guarantee that systems of other companies on which the Company's systems
rely will be timely converted and would not have an adverse effect on the
Company's systems.
If all material components are not identified or all appropriate
corrective actions are not taken or are not completed in a timely manner,
the Year 2000 issue could have a material impact on the operations of the
Company.
<PAGE>
Year 2000 Costs
Costs related to the Year 2000 issue are funded through operating cash
flows and are being expensed as incurred. As of December 1998, the
Company has expended funds in remediation efforts, which consisted of
costs associated with modifying the source code of existing software.
This amount has been immaterial to the Company. Based upon the Company's
investigations to date, it estimates the total costs related to the Year
2000 issue would be immaterial. A number of other upgrades have been made
to systems in the normal course of business that mitigate Year 2000
issues. This amount may vary substantially as the Company continues to
evaluate items associated with the Year 2000 issue.
Year 2000 Risks
The most reasonably likely worst case scenario for the Company is the
failure of a supplier to be Year 2000 compliant such that its supply of
needed products or services is interrupted temporarily. This could result
in the Company not being able to fulfill its obligation on a construction
contract, which could cause lost sales and profits and possibly
additional exposure for non-performance and damage claims.
Year 2000 Contingency Plans
The Company is currently evaluating business disruption scenarios,
coordinating the establishment of Year 2000 contingency plans and
identifying and implementing preemptive strategies. Detailed contingency
plans for critical business processes will be developed by September
1999.
The costs of the project and the date on which the Company believes it
will complete the Year 2000 project are based on management's best
estimates, which were derived utilizing numerous assumptions and future
events, including the continued availability of certain resources and
other factors. However, there can be no guarantee that these estimates
will be achieved and actual results could differ materially from those
anticipated. Specific factors that might cause such material differences
include, but are not limited to, the availability and cost of personnel
trained in this area, the ability to locate and correct all relevant
codes, the level of compliance by key suppliers and customers, and
similar uncertainties.
PART II
Item 1. Legal Proceedings
There were no material developments during the quarter relating to legal
proceedings previously reported by the Company.
<PAGE>
Item 4.Submission of Matters to a Vote of Security Holders
The Company held its annual meeting of stockholders on May 10, 1999,
pursuant to notice of meeting and proxy statement sent to stockholders of
the Company. Stockholders elected Messrs. William G. Brown and John M.
Harlan as the Class I directors to serve a term until the annual meeting
of stockholders to be held in the year 2002. Messrs. William G. Brown and
John M. Harlan were the incumbent Class I directors who were nominated
for election by the Board of Directors for re-election. Messrs. Allan E.
Bulley, Jr. (Class II), Bide L. Thomas (Class II) and Charles M. Brennan
III (Class III) continue to serve as directors of the class indicated
after the meeting. The stockholders approved an amendment to Article
Fourth of the Company's Certificate of Incorporation to increase the
authorized shares of common stock from 10,000,000 to 25,000,000 and to
reduce the stated par value from $1.00 to $0.01 per share. The vote on
the proposal was 3,626,428 for, 544,999 against and 8,463 abstained.
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits filed herewith are listed in the Exhibit Index filed as a
part hereof and incorporated herein by reference.
b. No reports on Form 8-K were filed by the Company for the 1st Quarter
of 1999.
CAUTIONARY STATEMENT-- This Report may contain statements which
constitute "forward-looking" information as defined in the Private
Securities Litigation Reform Act of 1995 or by the Securities and
Exchange Commission. Investors are cautioned that any such forward-
looking statements are not guarantees of future performance and actual
results may differ.
<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.
MYR Group Inc.
Date: May 11, 1999 By: /s/
William A. Koertner, Sr. Vice President,
Treasurer, and Chief Financial Officer
(duly authorized representative of registrant
and principal financial officer)
<PAGE>
MYR Group Inc.
Quarterly Report on Form 10Q
for the Quarter Ended March 31, 1998
Exhibit Index
Number Description Page (or Reference)
3 Certificate of Amendment of Amended 13
and Restated Certificate of Incorporation
27 Financial Data Schedules 14
Exhibit 3
CERTIFICATE OF AMENDMENT
OF AMENDED AND RESTATED CERTIFICATE OF INCORPORATION
OF
MYR GROUP INC.
MYR GROUP Inc., a corporation organized and existing under the laws of
the State of Delaware
FIRST: That the first paragraph of ARTICLE FOURTH of the Amended and
Restated Certificate of Incorporation of the Company is amended to read
in its entirety as follows:
"FOURTH: The number of shares of all classes of stock which the
corporation shall have authority to issue is twenty-six million
(26,000,000), of which twenty-five million (25,000,000) shares of par
value of $0.01 each are to be of a class designated as Common Stock and
one million (1,000,000) shares of par value of $1.00 each are to be of a
class designated Preferred Stock. The Preferred Stock shall be issuable
in series."
SECOND: That such amendment has been duly adopted by the Board of
Directors and approved by the holders of a majority of the corporation's
shares of in accordance with the provisions of Section 242 of the General
Corporation Law of the State of Delaware.
IN WITNESS WHEREOF, MYR Group Inc. has caused its corporate seal to be
hereunto affixed and this certificate to be signed by its Senior Vice
President this 10th day of May, 1999.
(Seal) MYR Group Inc.
By_____________________
William A. Koertner
Attest:
______________________
Byron D. Nelson
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> MAR-31-1998
<CASH> 530
<SECURITIES> 0
<RECEIVABLES> 74,191
<ALLOWANCES> 911
<INVENTORY> 0
<CURRENT-ASSETS> 96,751
<PP&E> 56,736
<DEPRECIATION> 41,378
<TOTAL-ASSETS> 113,508
<CURRENT-LIABILITIES> 66,718
<BONDS> 4,798
0
0
<COMMON> 5,970
<OTHER-SE> 34,577
<TOTAL-LIABILITY-AND-EQUITY> 113,508
<SALES> 107,327
<TOTAL-REVENUES> 107,327
<CGS> 95,569
<TOTAL-COSTS> 104,166
<OTHER-EXPENSES> (49)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 275
<INCOME-PRETAX> 2,937
<INCOME-TAX> 1,175
<INCOME-CONTINUING> 1,762
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,762
<EPS-PRIMARY> .31
<EPS-DILUTED> .27
</TABLE>
