<PAGE>
U. S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1997
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE TRANSITION PERIOD FROM __________ TO __________
Commission file number 0-12471
COLORADO MEDTECH, INC.
(Exact name of small business issuer as specified in its charter)
COLORADO 84-0731006
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
6175 LONGBOW DRIVE, BOULDER, COLORADO 80301
(Address of principal executive offices)
(303) 530-2660
(Issuer's telephone number)
Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15 (d) of the Exchange Act during the past 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
---- ----
As of April 30, 1997, the Company had 7,094,999 shares of Common Stock
outstanding.
Transitional Small Business Disclosure Format (Check One):
Yes No X
--- ---
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<PAGE>
COLORADO MEDTECH, INC.
FORM 10-QSB
PART I FINANCIAL INFORMATION Page
----
Item 1. Financial Statements:
Consolidated Balance Sheet -
March 31, 1997 3
Consolidated Statements of Operations -
Three and nine-months ended
March 31, 1997 and 1996 5
Consolidated Statements of Cash Flows -
For the nine months ended
March 31, 1997 and 1996 6
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis
of Financial Condition
and Results of Operations 10
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<PAGE>
PART I FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
COLORADO MEDTECH, INC.
CONSOLIDATED BALANCE SHEET
AS OF MARCH 31, 1997
(UNAUDITED)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,235,839
Short-term investments 4,822,020
Accounts receivable, net 6,246,815
Inventories, net 2,258,938
Deferred income taxes and
other assets 1,526,210
-----------
Total current assets 16,089,822
-----------
EQUIPMENT AND FURNITURE, net 548,094
-----------
GOODWILL, net 1,644,942
-----------
LAND, DEFERRED INCOME TAXES
AND OTHER ASSETS 831,327
-----------
TOTAL ASSETS $19,114,185
-----------
-----------
The accompanying notes are an integral part of this balance sheet.
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<PAGE>
COLORADO MEDTECH, INC.
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS OF MARCH 31, 1997
(UNAUDITED)
LIABILITIES AND
SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 3,413,708
Accrued salaries and wages 1,567,056
Accrued product service costs 436,967
Customer deposits 2,726,340
Other accrued expenses 2,155,735
-----------
Total current liabilities 10,299,806
-----------
SHAREHOLDERS' EQUITY:
Common stock 4,361,189
Retained earnings 4,453,190
-----------
Total shareholders' equity 8,814,379
-----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $19,114,185
-----------
-----------
The accompanying notes are an integral part of this balance sheet.
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<PAGE>
COLORADO MEDTECH, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
Three Months Ended Nine Months Ended
March 31, March 31,
--------------------------- --------------------------
1997 1996 1997 1996
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
SALES AND SERVICES $ 8,483,157 $4,811,897 $19,548,531 $13,962,354
COST OF SALES AND SERVICES 5,636,423 3,056,605 12,870,136 9,034,547
----------- ----------- ----------- -----------
GROSS PROFIT 2,846,734 1,755,292 6,678,395 4,927,807
----------- ----------- ----------- -----------
COSTS AND EXPENSES:
Marketing and selling 346,872 267,283 859,299 747,514
Operating, general and
administrative 1,277,792 873,847 3,201,138 2,884,121
Research and development 130,505 42,027 264,330 60,264
----------- ----------- ----------- -----------
Total operating expenses 1,755,169 1,183,157 4,324,767 3,691,899
----------- ----------- ----------- -----------
EARNINGS FROM OPERATIONS 1,091,565 572,135 2,353,628 1,235,908
OTHER INCOME, net 70,892 21,344 181,897 307,809
----------- ----------- ----------- -----------
EARNINGS BEFORE INCOME TAXES 1,162,457 593,479 2,535,525 1,543,717
Provision for income taxes 490,746 217,000 918,746 523,000
----------- ----------- ----------- -----------
NET INCOME $ 671,711 $ 376,479 $ 1,616,779 $ 1,020,717
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
NET INCOME PER COMMON
AND COMMON EQUIVALENT
SHARE:
Primary $ .06 $ .05 $ .16 $ .14
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Fully Diluted $ .06 $ .05 $ .16 $ .13
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
WEIGHTED AVERAGE COMMON
AND COMMON EQUIVALENT
SHARES OUTSTANDING:
Primary 11,381,948 8,139,051 11,169,143 7,469,671
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Fully Diluted 11,381,948 8,202,709 11,169,143 8,132,332
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
The accompanying notes are an integral part of these statements.
-5-
<PAGE>
COLORADO MEDTECH, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED MARCH 31, 1997 AND 1996
(UNAUDITED)
1997 1996
----------- -----------
OPERATING ACTIVITIES:
Net income $ 1,616,779 $ 1,020,717
Adjustment to reconcile net income
to net cash flows from operating actvities-
Deferred tax benefit (80,000) --
Depreciation and amortization 311,983 308,925
Gain on sale of product line -- (121,986)
Change in assets and liabilities-
Accounts receivable, net (2,227,846) (716,029)
Inventories, net (447,709) (601,662)
Prepaid and other assets (135,834) 17,781
Accounts payable and accrued expenses 2,354,724 (19,914)
Customer deposits 76,033 378,371
----------- -----------
Net cash flows from operating
activities 1,468,130 266,203
----------- -----------
INVESTING ACTIVITIES:
Cash paid for purchase of Novel, net (1,126,363) --
Decrease (increase) in short-term investments,
net 586,242 (1,751,648)
Proceeds from sale of product line -- 250,000
Capital expenditures (407,867) (96,596)
----------- -----------
Net cash flows from investing activities (947,988) (1,598,244)
----------- -----------
FINANCING ACTIVITIES:
Issuance of common stock 239,932 --
Purchase of common stock (138,884) --
----------- -----------
Net cash flows from financing activities 101,048 --
----------- -----------
Net change in cash and cash equivalents 621,190 (1,332,041)
Cash and cash equivalents, beginning 614,649 2,144,384
----------- -----------
Cash and cash equivalents, ending $ 1,235,839 $ 812,343
----------- -----------
----------- -----------
The accompanying notes are an integral part of these statements.
-6-
<PAGE>
COLORADO MEDTECH, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
THREE AND NINE MONTHS ENDED MARCH 31, 1997 AND 1996
(UNAUDITED)
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
The financial information is unaudited and should be read in conjunction with
the consolidated financial statements filed with Form 10-KSB on September 27,
1996. The accounting policies utilized in the preparation of the financial
information herein presented are the same as set forth in the Company's
annual consolidated financial statements filed with the Form 10-KSB, except
as modified for interim accounting policies which are within the guidelines
set forth in Accounting Principles Board Opinion No. 28. Certain amounts
have been reclassified in the prior year financial statements to be
consistent with the current year presentation.
In the opinion of management, the accompanying unaudited consolidated
financial statements contain all adjustments necessary to present fairly the
Company's financial position as of March 31, 1997, the results of its
operations for the three and nine-month periods ended March 31, 1997 and 1996
and its cash flows for the nine-month periods ended March 31, 1997 and 1996.
All of the adjustments were of a normal and recurring nature.
The following sets forth the supplemental disclosures of cash flow
information for the nine-month periods ended March 31, 1997 and 1996,
respectively:
1997 1996
---- ----
Cash paid for interest $ 28,970 $ 48,349
Cash paid for income taxes $845,000 $605,000
NOTE 2 - DEBT
On October 30, 1996, the Company renewed a financing arrangement with a bank
that provides for a $4 million revolving line of credit at the lender's prime
rate through October 30, 1997. This credit facility is secured by all
accounts, general intangibles, inventory and equipment. The agreement
contains various restrictive covenants which include, among others,
maintenance of certain financial ratios, maintenance of a minimum tangible
net worth and limitations on annual investments, dividends and capital
expenditures. No amounts had been advanced under the credit facility as of
April 30, 1997.
NOTE 3 - EARNINGS PER SHARE
Earnings per share are computed on the basis of the weighted average shares
outstanding during each period and dilutive common equivalent shares for stock
options and warrants. Primary and fully diluted earnings per share for the
three and nine-month periods ended March 31, 1997 and 1996 are computed under
the treasury stock method. For the three and nine-month periods ended March 31,
1997, net income is increased by approximately $62,000 and $170,000,
respectively, (for both primary and fully diluted earnings per share) of
interest income,
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<PAGE>
net of income taxes, from the investment of proceeds from assumed exercise of
options/warrants in excess of proceeds used to repurchase outstanding shares.
NOTE 4 - STOCK AND STOCK OPTIONS
During the quarter ended March 31, 1997, the Company issued 70,000 shares of
the Company's common stock and granted 294,211 non-qualified stock options to
employees and consultants in connection with the purchase of Novel (see note
5). In February 1997, the Company granted 100,000 incentive stock options to
an officer of Novel. The options to purchase the Company's common stock were
granted at an exercise price ranging from $2.97 to $3.02 per share, which was
the fair market value of the Company's common stock on the dates of the
grants. The options are exercisable for five years from the date of grant.
During the quarter ended December 31, 1996, the Company granted 271,700
incentive stock options to certain employees, including two officers of the
Company. The options to purchase the Company's common stock were granted at
an exercise price of $3.03 per share, which was the fair market value of the
Company's common stock on the date of the grant. The options are exercisable
for five years from the date of grant.
The Company had 104,129 stock options exercised by certain employees,
including an officer of the Company, during the quarter ended March 31, 1997.
During the nine-months ended March 31, 1997, the Company had 206,911 stock
options exercised by certain employees, including two officers of the
Company. The stock options were exercised at a price per share ranging from
$.94 to $2.38. The exercise of the stock options for common stock increased
the equity of the Company by $104,586 and $239,932 for the three and
nine-months ended March 31, 1997.
During the quarter ended March 31, 1997, the Company purchased 46,300 shares
of common stock which decreased the Company's equity by $138,884.
NOTE 5 - ACQUISITION OF NOVEL BIOMEDICAL, INC. ("NOVEL")
In February 1997, the Company completed the acquisition of Novel, located in
Minnesota, which specializes in the custom design, development, and
manufacture of unique disposable medical devices, primarily catheters, used
in angioplasty, minimally invasive surgery, electrophysiology, and
infertility.
The Company acquired Novel for $1,899,196, which included cash, the issuance
of 70,000 shares of common stock, and the grant of 294,211 non-qualified
stock options. The purchase price, less the net assets acquired, resulted in
goodwill of $1,661,557 that will be amortized over a 25 year period. The
accompanying consolidated financial statements include the operating results
of Novel since January 3, 1997, the effective date of the acquisition. The
total purchase price and net cash used for the acquisition of Novel are as
follows:
-8-
<PAGE>
Acquisition of Novel Biomedical, Inc.:
Assets acquired:
Cash $ 226,345
Accounts receivable 461,273
Inventories 108,592
Equipment and furniture 59,890
Other assets 584,131
Goodwill 1,661,557
Liabilities assumed (1,202,592)
-----------
Total purchase price 1,899,196
Less:
Stock and options issued (546,488)
Cash acquired (226,345)
-----------
Cash paid for purchase of Novel, net $ 1,126,363
-----------
-----------
The following unaudited pro forma results of operations of the Company for the
nine-months ended March 31, 1997 and 1996 assumes that the acquisition of Novel
had occurred on July 1, 1996 and 1995. These pro forma results are not
necessarily indicative of the actual results of operations that would have been
achieved nor are they necessarily indicative of future results of operations.
Nine Months Ended March 31,
---------------------------
1997 1996
---- ----
Revenues $20,963,534 $15,000,698
Net Income $ 1,833,528 $ 951,724
Net Income Per Share (Fully Diluted) $ .17 $ .12
-9-
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
As an aid to understanding the Company's operating results, the following table
indicates the percentage relationships of income and expense items to total
revenue for the line items included in the Consolidated Statements of Operations
for the three and nine-month periods ended March 31, 1997 and 1996, and the
percentage change in those items for the three and nine-month periods ended
March 31, 1997, from the comparable periods in 1996.
<TABLE>
Percentage Change From
As a Percentage of Total Revenues Prior Year's Comparable Period
- ------------------------------------------ --------------------------------------------------
Three-Month Period Nine-Month Period Three-Month Period Nine-Month Period
Ended March 31, Ended March 31, Ended March 31, Ended March 31,
- ------------------ ----------------- ------------------- ------------------
1997 1996 1997 1996 LINE ITEMS 1997 1997
---- ---- ---- ---- ---------- ---- ----
% % % % % %
<S> <C> <C> <C> <C> <C> <C>
100.0 100.0 100.0 100.0 Sales and Service 76.3 40.0
66.4 63.5 65.8 64.7 Cost of Sales and Services 84.4 42.5
----- ---- ---- ---- ----- -----
33.6 36.5 34.2 35.3 Gross Profit 62.2 35.5
----- ---- ---- ---- ----- -----
4.1 5.5 4.4 5.3 Marketing and Selling 29.8 15.0
15.1 18.2 16.4 20.7 Operating, Gen'l and Admin 46.2 11.0
1.5 .9 1.3 .4 Research and Development 210.5 338.6
----- ---- ---- ---- ----- -----
20.7 24.6 22.1 26.4 Total Operating Expenses 48.3 17.1
----- ---- ---- ---- ----- -----
12.9 11.9 12.1 8.9 Earnings from Operations 90.8 90.4
.8 .4 .9 2.2 Other Income, Net 232.2 (40.9)
----- ---- ---- ---- ----- -----
13.7 12.3 13.0 11.1 Earnings Before Income Taxes 95.9 64.2
5.8 4.5 4.7 3.8 Provision for Income Taxes 126.2 75.7
----- ---- ---- ---- ----- -----
7.9 7.8 8.3 7.3 Net Income 78.4 58.4
----- ---- ---- ---- ----- -----
----- ---- ---- ---- ----- -----
</TABLE>
-10-
<PAGE>
RESULTS OF OPERATIONS
The Company reported net income of $671,711 and $1,616,779 for the three and
nine-month periods ended March 31, 1997, as compared to $376,479 and
$1,020,717 for the same periods in the prior year. Earnings per share for
the three and nine-months ended March 31, 1997 were $.06 and $.16 calculated
on 11,381,948 and 11,169,143 fully diluted weighted average common shares and
equivalent shares outstanding compared to $.05 and $.13 for the same periods
in the prior year calculated on 8,202,709 and 8,132,332 fully diluted
weighted average common shares and equivalent shares outstanding.
Revenues increased to $8,483,157, or by 76%, and to $19,548,531, or by 40%,
for the three and nine-month periods ended March 31, 1997, as compared to the
same periods in the prior year. The increase in revenues is attributable to
the growth of the Company's base business and the acquisition of Novel
Biomedical, Inc. ("Novel"). The growth of the base business is primarily
represented by the custom development and manufacturing operations of RELA,
Inc. and reflects an increase in the number and size of projects. The
acquisition of Novel contributed approximately $600,000 in revenue during the
quarter ended March 31, 1997.
Gross margins decreased to 34% and 34% from 36% and 35% for the three and
nine-month periods ended March 31, 1997, respectively, compared to the same
periods in 1996. The decrease in the Company's margins is a result of the
shifting composition of the Company's revenues between service and products,
and increased project expenses associated with design and development
services.
Marketing and selling expenses increased 30% and 15% for the three and
nine-month periods ended March 31, 1997, as compared to the same periods in
the prior year. The increase is attributable to increased sales and the
addition of Novel. Marketing and selling expenses as a percentage of total
revenues were approximately 4% for the three and nine-month periods ended
March 31, 1997, compared to approximately 5% for the same periods in the
prior year.
Operating, general and administrative expenses increased 46% and 11% for the
three and nine-month periods ended March 31, 1997, respectively, as compared
to the same periods in the prior year. The increase is attributable to the
overall growth of the business and the addition of Novel. As a percentage of
revenues, operating, general and administrative expenses were 15% and 16% of
revenues for the three and nine-month periods ended March 31, 1997, as
compared to 18% and 21% for the same periods in the prior year.
Research and development expenses increased by $88,478 (211%) and $204,066
(389%) for the three and nine-month periods ended March 31, 1997. The
increase is a result of the Company's greater emphasis on developing
proprietary products. Consistent with the Company's operating plans, the
Company continues to pursue the acquisition or development of new or improved
technology or products. Should the Company identify any such opportunities,
the amount of future research and development expenditures may increase.
Other income increased to $70,892 and decreased to $181,897, respectively,
for the three and nine-month periods ended March 31, 1997. Included in other
income for the nine months ended March 31, 1996 is a gain of approximately
$122,000 from the sale of the cardiopulmonary product lines.
-11-
<PAGE>
The provision for income taxes is 42% and 36% of earnings before income taxes
for the three and nine-month periods ended March 31, 1997, compared to 37%
and 34% for the same periods in the prior year. The Company's provision for
income taxes as a percentage of earnings before income taxes is less than the
ordinary combined Federal and state tax rate of approximately 38% for the
nine-months ended March 31, 1997 and 1996, due to the fact that the Company
reduced the valuation allowance on the deferred tax assets for the
utilization of net operating losses in the three-month periods ended
September 30, 1996 and 1995.
FINANCIAL CONDITION -- LIQUIDITY AND CAPITAL RESOURCES
The Company's primary sources of liquidity have consisted of cash flow from
operations and cash deposits received from customers related to contracts.
Historically, the Company has also utilized proceeds from debt borrowings
and the cash proceeds from private placements of common stock to supplement
its cash resources.
The Company renewed its bank financing arrangement during October 1996 that
provides for a $4 million revolving line of credit at the bank's prime
lending rate. This credit facility, which matures October 30, 1997, is
secured by all accounts, general intangibles, inventory and equipment of the
Company. The agreement contains various restrictive covenants which include,
among others, maintenance of certain financial ratios, maintenance of a
minimum tangible net worth and limitations on annual investments, dividends
and capital expenditures. No amounts had been advanced under this credit
facility as of April 30, 1997.
The ratio of current assets to current liabilities was 1.6 to 1 at March 31,
1997, compared to 1.8 to 1 at June 30, 1996. The decrease in the current
ratio is due to the acquisition of Novel that was primarily a cash
transaction. The Company's working capital increased approximately $357,000
since June 30, 1996. The average number of days outstanding of the Company's
accounts receivable at March 31, 1997 was approximately 68 days, compared to
63 days at June 30, 1996. The Company has granted extended payment terms to
certain customers which increased the average number of days outstanding of
the Company's accounts receivable by 12 days for the nine-month period ended
March 31, 1997.
Cash provided by operations during the nine-month period ended March 31, 1997
was $1,468,000 and increased approximately $1,202,000 compared to the same
period in 1996 as a result of improved profitability and an increase in
accounts payable and accrued expenses.
During the nine-month period ended March 31, 1997, the Company acquired
approximately $408,000 of property and equipment consisting principally of
computer equipment. The Company has no present material commitments for
capital expenditures.
FORWARD -- LOOKING STATEMENTS
Statements contained herein which are not historical facts are
forward-looking statements that are subject to risks and uncertainties that
could cause actual results to differ materially from those set forth in or
implied by such forward-looking statements.
-12-
<PAGE>
SIGNATURES
In accordance with the requirements of the Securities Exchange Act of
1934, the Registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
COLORADO MEDTECH, INC.
-------------------------------
(Registrant)
DATE: May 12, 1997
/s/ JOHN V. ATANASOFF II
-------------------------------
John V. Atanasoff II
Chief Executive Officer
DATE: May 12, 1997
/s/ BRUCE L. ARFMANN
-------------------------------
Bruce L. Arfmann
Chief Financial Officer
-13-
<PAGE>
INDEX TO EXHIBITS
Exhibit Sequential
Number Description Page No.
- ------ ----------- --------
11.1 Computation of Primary and Fully Diluted Earnings Per Share 15
for the Three and Nine-Month Periods Ended March 31, 1997
27 Financial Data Schedule for the Nine-Month Period 16
Ended March 31, 1997
-14-
<PAGE>
Exhibit 11.1
COLORADO MEDTECH, INC.
Statement Re: Computation of Primary and Fully Diluted Earnings Per Share
for the Three and Nine-Month Periods Ended March 31, 1997
<TABLE>
Three-Months Ended Nine-Months Ended
March 31, 1997 March 31, 1997
-------------------------- -----------------------------
Fully Fully
Primary Diluted Primary Diluted
---------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
Net income $ 671,711 $ 671,711 $ 1,616,779 $ 1,616,779
Interest income from investment
of proceeds from assumed exercise
of options/warrants in excess of
proceeds used to repurchase outstanding
shares (see below), net of income taxes
(investment assumed to be made in
U.S. government securities) 61,605 61,328 170,032 169,613
---------- ---------- ---------- -----------
Adjusted net income $ 733,316 $ 733,039 $ 1,786,811 $ 1,786,392
Weighted average common
shares outstanding 7,040,248 7,040,248 6,949,898 6,949,898
Plus - common stock equivalents 5,749,750 5,749,750 5,609,225 5,609,225
Less - use of proceeds from assumed
exercise of options/warrants to
repurchase outstanding shares at the
yearend market price not to exceed
20% of the outstanding shares (1,408,050) (1,408,050) (1,389,980) (1,389,980)
Adjusted weighted common shares
outstanding 11,381,948 11,381,948 11,169,143 11,169,143
Fully diluted net income per share $.06 $.06 $.16 $.16
---------- ---------- ---------- ----------
</TABLE>
-15-
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-QSB
FOR QUARTER ENDED MARCH 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-START> JUL-01-1996
<PERIOD-END> MAR-31-1997
<CASH> 1,235,839
<SECURITIES> 4,822,020
<RECEIVABLES> 6,246,815
<ALLOWANCES> 0
<INVENTORY> 2,258,938
<CURRENT-ASSETS> 16,089,822
<PP&E> 548,094
<DEPRECIATION> 0
<TOTAL-ASSETS> 19,114,185
<CURRENT-LIABILITIES> 10,299,806
<BONDS> 0
0
0
<COMMON> 4,361,189
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 19,114,185
<SALES> 19,548,531
<TOTAL-REVENUES> 19,548,531
<CGS> 12,870,136
<TOTAL-COSTS> 4,324,767
<OTHER-EXPENSES> (181,897)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 2,535,525
<INCOME-TAX> 918,746
<INCOME-CONTINUING> 1,616,779
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,616,779
<EPS-PRIMARY> .16
<EPS-DILUTED> .16
</TABLE>
