<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------------
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
------------------------------
For Quarter Ended March 31, 1996 Commission file number 0-11656
THE WENDT-BRISTOL HEALTH SERVICES CORPORATION
A Delaware Corporation I.R.S. No. 22-1807533
Two Nationwide Plaza, Suite 760, Columbus, Ohio 43215
Registrant's Telephone No. (614) 221-6000
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 issuer's classes of
Common Stock, as of the latest practicable date.
EACH OF THE FOLLOWING CLASSES ARE REGISTERED ON THE AMERICAN STOCK EXCHANGE.
<TABLE>
<CAPTION>
Class Outstanding at April 30, 1996
----- -----------------------------
<S> <C>
Common Stock, par value 5,736,020
$.01 per share
Common Stock Purchase Warrants 414,538 (1)
</TABLE>
(1) Upon exercise, represents 1,139,980 shares of The
Wendt-Bristol Health Services Corporation.
<PAGE> 2
THE WENDT-BRISTOL HEALTH SERVICES CORPORATION
FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1996
THE WENDT-BRISTOL HEALTH SERVICES CORPORATION
AND SUBSIDIARIES
I N D E X
Part I Page No.
Financial Statements:
Consolidated Balance Sheets - December 31, 1995 and
March 31, 1996 (Unaudited) 3-4
Consolidated Statements of Operations (Unaudited)
Three Months Ended March 31, 1996 and 1995 5
Consolidated Statements of Cash Flow (Unaudited)
Three Months Ended March 31, 1996 and 1995 6-7
Notes to Consolidated Financial Statements 8-10
Management's Discussion and Analysis of Financial Condition
and Results of Operations 11-13
Part II
Signatures 14
Exhibits:
Exhibit 27 EDGAR Financial Data Schedule 15
2
<PAGE> 3
THE WENDT-BRISTOL HEALTH SERVICES CORPORATION
FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1996
THE WENDT-BRISTOL HEALTH SERVICES CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS AT MARCH 31, 1996 AND DECEMBER 31, 1995
ASSETS
<TABLE>
<CAPTION>
March 31 December 31
1996 1995
---- -----------
(Unaudited)
<S> <C> <C>
Current assets:
Cash $ 207,839 $ 35,825
------------ ------------
Restricted cash 165,907 163,962
------------ ------------
Receivables:
Trade, net of allowance for doubtful
accounts of $ 306,000 (March)
and $340,000 (December) 2,499,588 2,678,551
Notes receivable 87,492 49,920
Miscellaneous 830,326 858,032
------------ ------------
3,417,406 3,586,503
------------ ------------
Inventories 509,583 489,042
Prepaid expenses and other 539,764 549,774
------------ ------------
Total current assets 4,840,499 4,825,106
------------ ------------
Property, plant and equipment 19,669,975 19,531,862
Less: Accumulated depreciation and
amortization (5,472,871) (5,243,057)
------------ ------------
14,197,104 14,288,805
------------ ------------
Investments and other assets:
Notes and other receivables, net of current portion 384,298 395,912
Notes receivable from officers, employees and
related parties, net of amounts payable 901,834 863,509
Life insurance premiums receivable 794,368 758,795
Excess of cost over assets of businesses
and subsidiaries acquired, less amortization 632,325 637,729
Deferred charges 810,483 776,622
Other assets 262,934 260,847
------------ ------------
Total investments and other assets 3,786,242 3,693,414
------------ ------------
$ 22,823,845 $ 22,807,325
============ ============
</TABLE>
(Continued)
The accompanying notes are an integral part of the financial statements.
3
<PAGE> 4
THE WENDT-BRISTOL HEALTH SERVICES CORPORATION
FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1996
THE WENDT-BRISTOL HEALTH SERVICES CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Continued)
AS AT MARCH 31, 1996 AND DECEMBER 31, 1995
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
March 31 December 31
1996 1995
---- ----
(Unaudited)
<S> <C> <C>
Current liabilities:
Accounts payable $ 2,673,508 $ 2,836,474
Accrued expenses and other liabilities:
Salaries and wages 415,929 451,718
Taxes, other than federal income taxes 1,038,418 1,315,508
Interest 74,982 87,520
Stock purchase agreement payable 625,000 625,000
Other 1,610,999 1,987,634
Long-term obligations classified as current 1,005,049 2,760,789
Federal income taxes payable 77,391 100,000
------------ ------------
Total current liabilities 7,521,276 10,164,643
------------ ------------
Long-term obligations, less amounts classified
as current 10,423,565 7,880,566
------------ ------------
Total liabilities 17,944,841 18,045,209
------------ ------------
Minority interests 244,593 219,541
------------ ------------
Stockholders' equity:
Common stock: $.01 par;
authorized: 12,000,000 shares
issued: 8,243,480 shares 82,435 82,435
Capital in excess of par 10,264,751 10,274,974
Retained earnings (deficit) (2,789,716) (2,872,818)
------------ ------------
7,557,470 7,484,591
Treasury stock, at cost, 2,507,460 shares (March)
and 2,523,722 shares (December) (2,923,059) (2,942,016)
------------ ------------
Total stockholders' equity 4,634,411 4,542,575
------------ ------------
$ 22,823,845 $ 22,807,325
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE> 5
THE WENDT-BRISTOL HEALTH SERVICES CORPORATION
FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1996
THE WENDT-BRISTOL HEALTH SERVICES CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months ended March 31
---------------------------
1996 1995
---- ----
<S> <C> <C>
Revenues:
Net sales $ 707,977 $ 676,647
Service income 4,613,177 4,536,382
----------- -----------
5,321,154 5,213,029
----------- -----------
Costs and expenses:
Cost of sales 495,679 491,058
Selling, general and administrative
expenses, net 4,298,241 4,190,555
----------- -----------
4,793,920 4,681,613
----------- -----------
Operating income before depreciation 527,234 531,416
Depreciation 229,812 305,208
----------- -----------
Operating income 297,422 226,208
----------- -----------
Other income (expense):
Minority interests in (earnings) losses, net (25,052) 1,178
Interest expense (212,209) (305,494)
Other, net 29,355 22,796
----------- -----------
(207,906) (281,520)
----------- -----------
Income (loss) before income taxes 89,516 (55,312)
Income tax expense (6,414) --
----------- -----------
Net income (loss) $ 83,102 $ (55,312)
=========== ===========
Income (loss) per common share $ 0.01 $ (0.01)
=========== ===========
Weighted average shares outstanding 5,720,830 7,551,805
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE> 6
THE WENDT-BRISTOL HEALTH SERVICES CORPORATION
FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1996
THE WENDT-BRISTOL HEALTH SERVICES CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months ended March 31
-----------------------------
1996 1995
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 83,102 $ (55,312)
----------- -----------
Adjustments required to reconcile net income
to net cash provided by operating activities:
Amortization, depreciation and other, net 235,216 308,762
Provision for losses on notes and accounts receivable 19,228 52,237
Minority interest in earnings of consolidated subsidiaries 25,052 (1,178)
Changes in assets and liabilities:
Receivables 183,441 (269,798)
Merchandise inventories (20,541) 3,747
Prepaid expenses and other current assets 18,744 118,806
Accounts payable (162,966) (269,089)
Accrued expenses and other liabilities (702,052) (253,806)
Federal income taxes payable (22,609) (44,000)
Deferred charges and other (35,946) (31,413)
----------- -----------
Total adjustments (462,433) (385,732)
----------- -----------
Net cash used in operating activities (379,331) (441,044)
----------- -----------
Cash flows from investing activities:
Purchase of minority interest from limited partners -- (130,000)
Collection of miscellaneous receivable -- 1,700,000
(Increase) decrease in notes receivable (25,958) 33,227
Disbursements to related parties
and former affiliates, net (69,898) (68,333)
Utilization of or (deposit) to restricted cash (1,945) 162,303
Capital expenditures (68,604) (42,383)
----------- -----------
Net cash provided by (used in) investing activities (166,405) 1,654,814
----------- -----------
Cash flows from financing activities:
Proceeds from warrants exercised -- 3,750
Principal payments of long-term obligations (326,488) (1,039,367)
Proceeds from long-term obligations 1,044,238 --
Net borrowings from securitization program -- (278,500)
----------- -----------
Net cash provided by (used in) financing activities 717,750 (1,314,117)
----------- -----------
Net increase (decrease) in cash 172,014 (100,347)
Cash at beginning of period 35,825 182,042
----------- -----------
Cash at end of period $ 207,839 $ 81,695
=========== ===========
</TABLE>
(Continued)
The accompanying notes are an integral part of the financial statements.
6
<PAGE> 7
THE WENDT-BRISTOL HEALTH SERVICES CORPORATION
FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1996
THE WENDT-BRISTOL HEALTH SERVICES CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months ended March 31
---------------------------
1996 1995
---- ----
<S> <C> <C>
Supplemental disclosures of cash flow information
Cash paid during the three months for:
Interest $ 224,747 $ 329,100
Income taxes $ 28,000 $ 44,000
Supplemental disclosures of noncash investing and financing activity:
A partnership, of which the Company is the managing general partner
purchased equipment which was financed by entering into an installment
finance agreement
Increase in equipment cost, net $ 69,509
Increase in long-term obligations (69,509)
Common stock of the Company (2,000,000 shares) and common stock of a
subsidiary (300,000 shares) were exchanged for 30,000 shares of preferred
stock, par value $100 per share, owned by the Company in Life Holdings,
Inc.
Decrease in investment in preferred stock, at cost $(3,000,000)
Decrease in minority interest 512,653
Increase in treasury stock 2,487,347
A subsidiary of the Company has sold the operating assets, net of
associated liabilities to a related party in exchange for an interest
bearing note.
Increase in notes receivable from officers, employees and related
parties, net of amounts payable:
Note arising in transaction $ 574,949
Other (55,936)
Decrease in accounts payable 48,624
Decrease in accrued expenses and other liabilities 83,006
Decrease in trade and miscellaneous receivables (4,668)
Decrease in inventories (126,703)
Decrease in prepaid expenses and other current assets (38,409)
Decrease in property, plant and equipment, net (240,079)
Decrease in deferred charges (500)
Decrease in other assets (240,284)
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE> 8
THE WENDT-BRISTOL HEALTH SERVICES CORPORATION
FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1996
THE WENDT-BRISTOL HEALTH SERVICES CORPORATION
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. MANAGEMENT'S REPRESENTATION
In the opinion of management, the accompanying unaudited consolidated
financial statements contain all adjustments (consisting only of normal
adjustments and recurring accruals) necessary to present fairly The
Wendt-Bristol Health Services Corporation ("Wendt-Bristol" or
"Company") and subsidiaries consolidated financial position as at March
31, 1996 and December 31, 1995 and the consolidated results of its
operations for the three months ended March 31, 1996 and 1995 as well
as the cash flows for the respective three months. The results of
operations for any interim period are not necessarily indicative of
results for the full year. THESE FINANCIAL STATEMENTS SHOULD BE READ IN
CONJUNCTION WITH THE FINANCIAL STATEMENTS AND NOTES THERETO CONTAINED
IN THE WENDT-BRISTOL ANNUAL REPORT FILED AS FORM 10-K FOR THE YEAR
ENDED DECEMBER 31, 1995, WHICH IS HEREBY INCORPORATED BY REFERENCE.
2. INCOME TAXES
The Company utilizes the provisions of SFAS No. 109, which requires the
use of the liability method of accounting for deferred income taxes. As
a result, the Company has recognized a deferred tax liability, a
deferred tax asset and a valuation allowance against the deferred tax
assets. A summary of the December 31, 1995 attributes is as follows:
<TABLE>
<S> <C>
Deferred tax assets $2,000,200
Less: valuation allowance 300,000
----------
1,700,200
Deferred tax liabilities 1,530,800
----------
Net deferred tax asset $ 169,400
==========
</TABLE>
During 1996, the Company does not expect to incur any current Federal
tax liability since they will be able to utilize net operating loss
carry forwards to reduce taxable income to zero.
8
<PAGE> 9
THE WENDT-BRISTOL HEALTH SERVICES CORPORATION
FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1996
THE WENDT-BRISTOL HEALTH SERVICES CORPORATION
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
2. INCOME TAXES (CONTINUED)
State and local taxes are summarized as follows:
<TABLE>
<CAPTION>
Three months ended March 31,
----------------------------
1996 1995
---- ----
<S> <C> <C>
State and local taxes:
Current expense $ 6,414 $ -
======= =====
</TABLE>
3. STOCKHOLDERS' EQUITY
At March 31, 1996 there were 414,538 Common Stock purchase warrants
outstanding, exercisable at $3.75 per warrant. Each warrant, upon
exercise, provides two and three quarters (2 3/4) shares of the
Company's common stock and a Series II warrant (issuable upon
completion of appropriate Securities and Exchange Commission filings)
exercisable for two shares at $3.00/share. The Warrants' expiration
dates, as amended by the Board of Directors in April 1996, are May 1,
1997 for the initial Warrant and May 1, 1998 for the Series II
Warrants. There were no warrants exercised during the three months
ended March 31, 1996.
Earnings per share were computed using the weighted average number of
shares outstanding (net of Treasury shares) during each period. The
common stock equivalents (warrants and options) are anti-dilutive,
thereby yielding similar primary and fully diluted per share amounts.
4. SUBSEQUENT EVENTS
A. On April 1, 1996, the Company re-financed a mortgage at the Diagnostics
and Radiology Center, operated by a partnership of which a subsidiary
is the general partner. The mortgage of $712,500 bears a fixed interest
rate of 9.41%, payable in monthly installments through April, 2005,
with any remaining balance due on that date. Funds provided from the
mortgage are for working capital related to the expansion of operations
at the facility.
(Continued)
9
<PAGE> 10
THE WENDT-BRISTOL HEALTH SERVICES CORPORATION
FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1996
THE WENDT-BRISTOL HEALTH SERVICES CORPORATION
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
4. SUBSEQUENT EVENTS (CONTINUED)
B. During April, 1996, the Company re-financed the mortgage relating to
the New Jersey property leased by the purchaser of its former
manufacturing division. The mortgage was initially due on October 1,
1995 but the Company received a short-term extension from the lender;
therefore, the entire balance of approximately $1,640,000 was
classified as current on the December 31,1995 Balance Sheet. Terms of
the new five-year $1,700,000 mortgage include amortization on a ten
year basis, a five year renewal option and interest at prime plus three
percent.
Each of the above re-financing transactions are reflected in the
classification of long-term debt in the March 31, 1996 Balance Sheet.
10
<PAGE> 11
THE WENDT-BRISTOL HEALTH SERVICES CORPORATION
FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1996
THE WENDT-BRISTOL HEALTH SERVICES CORPORATION
AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
NOTE: REFERENCE SHOULD BE MADE TO THE NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS HEREIN.
FINANCIAL CONDITION
Management believes that the Company's financial condition continues to be
strengthened through the concentration of efforts to develop its Health Care
Services business. As a result of the emphasis on health services, rather than
manufacture or distribution, Management believes that the Company has
established a focused growth plan that is evidenced by the $138,000 increase in
net income for the first three months of 1996 from a net loss of $55,000 in 1995
to net income of $83,000 in 1996.
In addition to the aforementioned, the mortgage on the Company's New Jersey
property was refinanced in April 1996 resulting in a reclassification of
approximately $1,517,000 from current liabilities to long-term debt (see Note
4).
Working capital increased approximately $2,659,000 during the three months ended
March 31, 1996, due mostly from an equipment refinancing in March 1996 and the
refinancing of the New Jersey mortgage (see Form 10-K Note 15 and Note 4
herein). Current assets increased approximately $15,000, due mostly from an
increase in cash of approximately $172,000 partially offset by a decrease of
approximately $169,000 in receivables. Current liabilities decreased
approximately $2,643,000, due primarily from reductions in current portion of
long-term debt ($1,756,000 - most of which was reclassified to long-term),
accrued expenses other ($377,000), accrued taxes other than federal income taxes
($277,000), and accounts payable ($163,000). Such reductions in liabilities were
accomplished as a result of the 1996 re-financings.
LIQUIDITY AND CAPITAL RESOURCES
The Company improved its working capital during the first quarter of 1996 by
re-financing most of its equipment and replacing its balloon mortgage on the New
Jersey property (due April, 1996) with a mortgage that matures in 2001 (see Note
4). On March 27, 1996 the Company, through several of its subsidiaries,
re-financed most of its equipment; the total amount refinanced of $1,700,000
bears an interest rate of 12-1/8% with the balance amortizing over sixty months.
With the proceeds, the Company paid off existing debt of approximately
$1,023,000 and used the remainder for working capital needs.
11
<PAGE> 12
THE WENDT-BRISTOL HEALTH SERVICES CORPORATION
FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1996
THE WENDT-BRISTOL HEALTH SERVICES CORPORATION
AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
LIQUIDITY AND CAPITAL RESOURCES (CONTINUED)
The Company, at its Diagnostic and Radiology Center operated by a limited
partnership of which a subsidiary is general partner, is obtaining additional
imaging techniques such as angiography and fluoroscopy early in the third
quarter of 1996. The cost of such equipment, approximately $745,000, will be
financed through the Partnership by a favorable vendor financing program.
Also, the Company is currently in negotiations with a finance company to secure
additional working capital funds to replace the accounts receivable
securitization program that was terminated in 1995. Management believes, based
upon discussions, the new credit facility will be in place by the end of May,
1996. As a result of this transition, the Company has experienced cash flow
difficulties from time to time, but has maintained good working relationships
with its vendors.
Management further believes the present resources available, the accounts
receivable financing program indicated above, as well as profitable operations
will meet anticipated requirements for operations of the business. There are no
further material commitments for capital expenditures.
RESULTS OF OPERATIONS 1996-1995
Consolidated revenues from operations for the three months ended March 31, 1996
increased approximately $108,000 or 2.1% over the same period in 1995. Net sales
increased approximately $31,000 while service revenues increased approximately
$77,000 over the same period in 1995. Revenues at the Alzheimer's Center
increased approximately $347,000 due to increased occupancy and higher rates
while revenues declined approximately $141,000 at another nursing home (due to
lower rates and occupancy levels which are expected to be temporary) and
$164,000 in the Home Care subsidiary. The Home Care subsidiary has been
demonstrating an increasing number of visits in 1996 as compared to the second
half of 1995.
Cost of sales increased approximately $5,000 for the three months ended March
31, 1996 while gross margin improved slightly in the 1996 quarter from 29.4% in
1995 to 30.0% in 1996.
Selling, general and administrative expenses increased approximately $108,000
over the same period in 1995. Increases of $141,000 at the Alzheimer's Center
and $78,000 at the Diagnostic and Radiology Center were partially offset by a
decrease of $113,000 in Home Care. The increases at the Alzheimer's Center were
attributable to higher staffing levels due to higher occupancy than the previous
year while the increases at the Diagnostics Center were due mostly to the
transition of a switch to a new radiology group that is providing MRI and C-T
radiology services to the Center via telecommunications technology. The decline
in expenses in Home Care is in conjunction with the decline in service revenues
over the same period in 1995; however, it is anticipated that these costs will
be more cost justified as the number of visits increase during 1996.
12
<PAGE> 13
THE WENDT-BRISTOL HEALTH SERVICES CORPORATION
FOR 10-Q FOR THE QUARTER ENDED MARCH 31, 1996
THE WENDT-BRISTOL HEALTH SERVICES CORPORATION
AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
RESULTS OF OPERATIONS 1996-1995 (CONTINUED)
Interest expense decreased approximately $93,000 for the three months ended
March 31, 1996 as compared to the same period in 1995, mostly due to the
termination of the accounts receivable securitization program.
13
<PAGE> 14
THE WENDT-BRISTOL HEALTH SERVICES CORPORATION
FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1996
PART II SIGNATURES
--------------------------------
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.
THE WENDT-BRISTOL HEALTH SERVICES CORPORATION
(Registrant)
May 14, 1996 By: /s/ Sheldon A. Gold
-----------------------------------
Sheldon A. Gold
President
(Principal Executive, Financial and
Accounting Officer)
May 14, 1996 By: /s/ Charles R. Cicerchi
-----------------------------------
Charles R. Cicerchi
Vice-President, Finance
14
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 373746
<SECURITIES> 0
<RECEIVABLES> 2805588
<ALLOWANCES> 306000
<INVENTORY> 509583
<CURRENT-ASSETS> 4840499
<PP&E> 19669975
<DEPRECIATION> 5472871
<TOTAL-ASSETS> 22823845
<CURRENT-LIABILITIES> 7521276
<BONDS> 10423565
0
0
<COMMON> 82435
<OTHER-SE> 4551976
<TOTAL-LIABILITY-AND-EQUITY> 22823845
<SALES> 707977
<TOTAL-REVENUES> 5321154
<CGS> 495679
<TOTAL-COSTS> 495679
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 212209
<INCOME-PRETAX> 89516
<INCOME-TAX> 6414
<INCOME-CONTINUING> 83102
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 83102
<EPS-PRIMARY> .01
<EPS-DILUTED> .01
</TABLE>
