<PAGE> 1
U.S. Securities and Exchange Commission, Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended January 31, 1997
[ ] 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 2-87778A
THE FLIGHT INTERNATIONAL GROUP, INC.
(Exact name of small business issuer as specified in its charter)
Georgia 58-1476225
(State or other jurisdiction of (I.R.S. Employer Incorporation or
organization) Identification No.)
Newport News/Williamsburg International Airport, Newport News, VA 23602
(Address of principal executive offices)
(804) 886-5500
Issuer's telephone number
(Former name, former address and former fiscal year, if changed since last
report)
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 .
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the issuer has filed all documents and reports required to
be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution
of securities under a plan confirmed by a court. Yes _X_ No ___
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's class of
common equity, as of the latest practicable date: As of March 7, 1997, there
were 1,003,976 shares of the issuer's New Common Stock, par value $.01 per
share, issued and outstanding.
Transitional Small Business Disclosure Format [check one]:Yes ___ No _X_
<PAGE> 2
PART 1
FINANCIAL INFORMATION
ITEM 1. CONDENSED FINANCIAL STATEMENTS
The Flight International Group, Inc. (the "Company") files herewith
condensed consolidated balance sheets of the Company and its subsidiaries as of
January 31, 1997 (unaudited) and April 30, 1996 (the Company's most recent
fiscal year), unaudited condensed consolidated statements of operations for the
three and nine months ended January 31, 1997 and 1996, and unaudited condensed
consolidated statements of cash flows for the nine months ended January 31, 1997
and 1996, together with unaudited condensed notes thereto. In the opinion of
management of the Company, the financial statements reflect all adjustments, all
of which are normal recurring adjustments, necessary to fairly present the
financial condition of the Company for the interim periods presented. Operating
results for any quarter are not necessarily indicative of results for any future
period. The financial statements included in this report on Form 10-QSB should
be read in conjunction with the audited financial statements of the Company and
the notes thereto included in the annual report of the Company on Form 10-KSB
for the year ended April 30, 1996.
<PAGE> 3
THE FLIGHT INTERNATIONAL GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
January 31, 1997 April 30, 1996
(unaudited)
---------------- --------------
<S> <C> <C>
CURRENT ASSETS
Cash $ 107,485 $ 1,178,779
Accounts Receivable, net 2,289,145 1,380,803
Inventories 1,710,054 1,729,503
Prepaid expenses, deposits and other 1,632,817 786,985
------------ ------------
Total current assets 5,739,501 5,076,070
PROPERTY AND EQUIPMENT, NET 4,393,115 4,532,658
OTHER ASSETS 50,132 31,116
------------ ------------
$ 10,182,748 $ 9,639,844
============ ============
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
<PAGE> 4
THE FLIGHT INTERNATIONAL GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
January 31, 1997 April 30 ,1996
(Unaudited)
---------------- --------------
<S> <C> <C>
CURRENT LIABILITIES
Accounts payable $ 465,944 $ 174,286
Deferred revenue 711,632 598,145
Accrued expenses and other 2,064,632 1,580,820
liabilities
Notes Payable 71,461 --
Long-term debt due currently 566,150 599,533
------------ -----------
Total current liabilities 3,879,819 2,952,784
OTHER NON-CURRENT LIABILITIES 1,347,531 1,659,855
LONG-TERM DEBT, LESS CURRENT 3,559,845 4,034,355
MATURITIES
------------ -----------
Total liabilities 8,787,195 8,646,994
------------ -----------
STOCKHOLDERS' EQUITY
Common stock, $.01 par value, 10,000,000 shares
authorized, 998,976 issued and 9,990 9,990
outstanding
Additional paid in capital 988,986 988,986
Treasury stock (1,769) (1,769)
Retained Earnings 398,346 (4,357)
------------ -----------
Total stockholders' equity 1,395,553 992,850
$ 10,182,748 $ 9,639,844
============ ===========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
<PAGE> 5
THE FLIGHT INTERNATIONAL GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
For the Three Months Ended For the Nine Months Ended
January 31, 1997 January 31, 1996 January 31, 1997 January 31, 1996
-------------------------------------- ------------------------------------
<S> <C> <C> <C> <C>
REVENUES $ 4,214,062 $ 2,499,342 $13,280,519 $9,544,077
OPERATING COSTS AND EXPENSES
Costs of services 3,754,596 1,940,939 10,612,703 6,965,174
Depreciation and amortization 143,128 187,794 443,912 613,666
General, corporate and administrative 523,132 408,065 1,503,831 1,380,333
--------------------------------- -------------------------------
Total operating costs and expenses 4,420,856 2,536,798 12,560,446 8,959,173
INCOME (LOSS) BEFORE OTHER (INCOME) (206,794) (37,456) 720,073 584,904
EXPENSES
OTHER (INCOME) EXPENSES
Interest expense 118,978 142,558 313,765 456,017
Income tax 3,338 0 3,605 1,890
--------------------------------- -------------------------------
Total other expenses 122,316 142,558 317,370 457,907
NET INCOME (LOSS) $ (329,110) $ (180,014) $ 402,703 $ 126,997
================================= ===============================
NET INCOME (LOSS) PER COMMON SHARE $ (0.33) $ (0.18) $ 0.40 $ 0.13
================================= ===============================
WEIGHTED AVERAGE NUMBER OF SHARES 998,976 998,976 998,976 998,976
================================= ===============================
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
<PAGE> 6
THE FLIGHT INTERNATIONAL GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
For the Nine Months Ended
January 31, 1997 January 31, 1996
-------------------------------------
<S> <C> <C>
OPERATING ACTIVITIES
Net income (loss) $ 402,703 $ 126,997
Adjustments to reconcile net income (loss)
to net cash provided by (used in) operating
activities
Depreciation and amortization 443,912 613,666
Engine reserve 87,582 158,400
Changes in operating assets and liabilities
Accounts receivable (908,342) 193,399
Inventories 19,449 106,252
Prepaid expenses (845,832) (562,801)
Accounts payable 291,658 73,851
Accrued expenses and other liabilities 396,230 (239,644)
Deferred revenue (198,837) 459,976
-------------------------------
Net cash provided by (used in) operating activities (311,477) 930,096
INVESTING ACTIVITIES
Sale (Purchase) of property and equipment (304,369) (218,079)
Net (increase) decrease in other assets (19,016) (25,824)
-------------------------------
Net cash provided by (used in) investing activities (323,385) (243,903)
FINANCING ACTIVITIES
Short Term Borrowing 71,461 0
Repayment of long-term debt (507,893) (789,116)
-------------------------------
Net cash provided by (used in) financing activities (436,432) (789,116)
NET (DECREASE) INCREASE IN CASH AND
(1,071,294) (102,923)
CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 1,178,779 601,744
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 107,485 $ 498,821
===============================
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest paid 191,723 456,017
Income taxes paid 3,605 1,890
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
<PAGE> 7
THE FLIGHT INTERNATIONAL GROUP, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Flight International Group, Inc. (the "Company") is an aviation
services company that performs military training services using specially
modified commercial aircraft, principally under contracts with the United
States Department of Defense, other government agencies and foreign
countries. In addition, the Company has established a market for training
and testing in the aerospace industry. The Company also operates a fixed
base operation ("FBO") at the Newport News/Williamsburg International
Airport.
The consolidated financial statements include the accounts of the Company
and its wholly owned subsidiaries. All significant intercompany
transactions and balances have been eliminated.
Net income/loss per common share is computed by dividing the net
income/loss by the weighted average number of shares of common stock
outstanding during the period.
2. REORGANIZATION AND EMERGENCE FROM CHAPTER 11
On February 4, 1994, the Company and three of its affiliates, Flight
International, Inc. ("FII"), Flight International of Florida, Inc.
("FIF"), and Flight International Aviation, Inc. ("FIA") filed voluntary
petitions in the United States Bankruptcy Court in the Eastern District of
Virginia (the "Bankruptcy Court") for reorganization under Chapter 11 of
the United States Bankruptcy Code (the "Code"). On December 8, 1994, the
Bankruptcy Court entered an order confirming the Company's joint plan of
reorganization (the "Plan"), and the Plan became effective on December 28,
1994 (the "Effective Date"). For accounting purposes, the effective date
is deemed to be December 31, 1994.
Pursuant to the Plan, a total of 1,000,000 shares of new common stock were
authorized and 998,976 shares were issued. The 9,899,713 shares of common
stock previously outstanding were canceled. The shares of new common stock
were distributed as follows:
(i) 510,000 shares were issued to holders of allowed general unsecured
claims;
(ii) 290,000 shares were issued to members of Flight's management in
exchange for an equity investment of $290,000 in the reorganized company;
(iii) 100,000 shares were issued to the Company's management as
compensation; and
<PAGE> 8
(iv) 98,976 were issued to shareholders of record on December 20, 1994.
Of the 510,000 shares to be issued to holders of allowed general unsecured
claims, approximately 51,000 shares are being held by the Company to
satisfy remaining disputed claims of unsecured creditors. As of the date
of filing this quarterly report, no claims remain in dispute. Certain
resolved claims are awaiting final distribution of shares. The Company
anticipates that a final distribution of the remaining shares will be
completed by April 30, 1997.
3. FRESH START ACCOUNTING
The Company has accounted for the reorganization by using the principles
of fresh start accounting, as required by SOP 90-7. The Company was
required to adopt fresh start reporting because holders of the existing
voting shares immediately prior to filing and confirmation of the Plan
received less than 50% of the voting shares of the emerging entity, and
its reorganization value was less than the total of its post-petition
liabilities and allowed claims. Under the principles of fresh start
accounting, the Company's total assets were recorded at their assumed
reorganization value, with the reorganization value allocated to
identifiable tangible assets on the basis of their estimated fair value.
The Company's net reorganization value was determined to be approximately
$1,000,000. The net reorganization value was based principally on cash
infusions received for the issuance of new common stock and was approved
by the Bankruptcy Court.
As a result of the implementation of fresh start accounting, the financial
statements of the Company after consummation of the plan are not
comparable to the Company's financial statements of prior periods.
4. INCOME TAXES
No provision for federal income taxes has been made by the Company, as it
has substantial Net Operating Loss carry forwards available to offset
against current income.
5. NOTES PAYABLE
On October 16, 1996 the Company entered into a Factoring Agreement (the
"Agreement") with Heller Small Business Finance, a division of Heller
Financial, Inc. ("Heller"). The Agreement granted Heller an assignment of
the CAS-MOS contract accounts receivable and proceeds thereon as
collateral for a line of credit which is expected not to exceed
$2,000,000. The term of the Agreement is two years with an option for FII
to terminate the Agreement after one year if the Company is able to obtain
traditional bank financing. Heller charges a discount fee of .8% of the
invoice amount purchased and an interest rate of prime plus 1% until the
invoice is paid. The Agreement includes a minimum fee to Heller, inclusive
of all interest charges, of $60,000 per annum. The January 31, 1997
balance due Heller of $71,461 is shown in the balance sheet as a Notes
Payable under Current Liabilities.
<PAGE> 9
ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
BACKGROUND AND GENERAL INFORMATION
On February 4, 1994 (the "Petition Date"), the Company and certain of its
subsidiaries (the "Chapter 11 Entities") filed a petition for relief under
Chapter 11 of the Federal Bankruptcy Code (the "Code") in the United States
Bankruptcy Court for the Eastern District of Virginia, Newport News Division
(the "Bankruptcy Court").
On December 28, 1994, a Joint Plan of Reorganization dated August 31,
1994, as amended, confirmed and decreed by order of the Bankruptcy Court (the
"Plan"), became effective. The Plan restructured and satisfied the claims of the
creditors of the Chapter 11 Entities and the interests of shareholders of the
Company.
The Company accounted for the reorganization effected by the Plan through
the principles of "fresh start" accounting, as required by Statement of Position
("SOP") 90-7, "Financial Reporting by Entities in Reorganization Under the
Bankruptcy Code", issued by the American Institute of Certified Public
Accountants. As a result, the financial statements of the Company for the post
bankruptcy period are not comparable in all respects to the Company's financial
statements of prior periods.
In August 1996, the Company was awarded a major government contract. The
Commercial Air Services-Military Operations Support (CAS-MOS) contract is a
derivative of the original government contract won by the Company in 1980 and
operated by the Company until September 1993. The new one year contract, which
can be extended by the government for an additional four years, began October 1,
1996. Annual revenues from this contract are anticipated to be $12 to $22
million; however CAS-MOS replaces $4.5 million in existing business from the
Sentel and Pax River contracts, which expired September 30, 1996. Therefore, the
net increase in revenue from this contract is estimated to be $7.5 to $17.5
million, or an increase of 60% to 140% over fiscal year 1996 actual revenue, and
is expected to constitute a substantial portion of the Company's revenues. The
large range of revenues from this contract is a result of options available to
the United States Navy. The Company does not anticipate any significant problems
in obtaining the resources necessary to service this contract, although there
can be no assurance thereof. Similarly, there can be no assurance that the
government will exercise its options on the CAS-MOS contract.
<PAGE> 10
RESULTS OF OPERATIONS
Revenues
Total revenues for the three months ended January 31, 1997 and 1996 were
$4,214,062 and $2,499,342, respectively. For the nine months ended January 31,
1997 and 1996, total revenues were $13,280,519 and $9,544,077, respectively. The
69% increase in revenue for the three months ended January 31, 1997 is
principally due to contract flying on the new CAS-MOS contract. While all flight
operations revenue increased by 112% during the period, the other segments of
Company revenue declined. Revenues from the fixed base operations ("FBO")
declined 14%, while revenues from maintenance operations declined 29%. The FBO
revenues were low due to decreased traffic through the Newport News/Williamsburg
International Airport. Maintenance revenue declined due to increased maintenance
work on Company aircraft to support contract flying.
For the nine months ended January 31, 1997, revenue is up 39% over the
comparable prior year period. This is principally due to the start-up of the
CAS-MOS contract in October 1996, which has resulted in a 43% increase in flight
operations, and customer aircraft modifications, which resulted in a 75%
increase in maintenance revenues for the period.
Cost of Services
Cost of services for the three months ended January 31, 1997 and 1996 were
$3,754,596 and $1,940,939, respectively. For the nine months ended January 31,
1997 and 1996, the cost of services was $10,612,703 and $6,965,174,
respectively.
The 93% increase in cost of services for the quarter is principally due to
the six additional aircraft and other associated costs required for the CAS-MOS
contract. Cost of services is up 52% year-to-date for the same reason costs
increased for the quarter.
Depreciation and Amortization
Depreciation and amortization for the three months ended January 31, 1997
and 1996 were $143,128 and $187,794, respectively. For the nine months ended
January 31, 1997 and 1996, depreciation and amortization were $443,912 and
$613,666, respectively. The decrease in depreciation for both the three and nine
months ended January 31, 1997 over the comparable prior year period is a result
of the sale and subsequent leaseback of three planes with a total cost basis of
approximately $2,694,000 in April 1996.
<PAGE> 11
General Corporate and Administrative
General corporate and administrative expenses for the three months ended
January 31, 1997 and 1996 were $523,132 and $408,065, respectively. For the nine
months ended January 31, 1997 and 1996, general corporate and administrative
expenses were $1,503,831 and $1,380,333, respectively. The 28% increase in the
quarter is principally due to increased salaries necessary to support the new
CAS-MOS contract. For the nine months ended January 31, 1997, costs are up 9%
over the prior year, again, as a result of the support necessary to manage the
increased revenue.
Interest
Interest expense for the three months ended January 31, 1997 and 1996 was
$118,978 and $142,558, respectively. For the nine months ended January 31, 1997
and 1996, interest expense was $313,765 and $456,017, respectively. The 17% and
31% decreases in interest expense for the three and nine month periods ended
January 31, 1997 over the comparable prior year periods is principally due to
the sale and subsequent leaseback of three planes and the related payoff of
approximately $2,164,000 in long term debt in April 1996. The decrease from the
sale-leaseback is partially offset by interest expenses resulting from
obligations pursuant to the new Factoring Agreement (See Liquidity and Capital
Resources).
Net Income (Loss)
As a result of the foregoing, the Company's loss for the three months
ended January 31, 1997 was $329,110, or $.33 per share of the Company's common
stock, compared with a net loss of $180,014, or $.18 per share for the three
months ended January 31, 1996. For the nine months ended January 31, 1997, the
Company's net income was $402,703, or $.40 per share, compared to $126,997 or
$.13 per share for the nine months ended January 31, 1996. The weighted average
number of shares used in computing per share earnings for all periods was
998,976.
The third quarter has typically been a weak quarter for the Company. The
Thanksgiving and Christmas holiday periods are typically stand down periods for
the military and, thus, utilization of aircraft is weakest during this period.
Further, the Company utilizes these reduced flying periods to schedule
maintenance on aircraft to avoid having the planes down during heavy flying
periods. As a result of the foregoing, gross margins typically are lower during
this quarter.
Liquidity and Capital Resources
The Company has funded its operations primarily through cash flow from
operations, bank indebtedness and a sale-leaseback of certain aircraft effected
in April 1996. The Company's operating activities used cash of $311,477 for the
nine months ended January 31, 1997, while providing $930,096 in the comparable
prior year
<PAGE> 12
period. Cash was used in the current period to fund deposits on additional
aircraft needed for the CAS-MOS contract, as well as additional deposits for two
additional aircraft the Company has leased in connection with other new
business. The Company also signed a lease extension which required a substantial
deposit. Accounts receivable also rose by $908,000, due to the increased volume
from the new CAS-MOS contract partially offset by increases in accounts payable
and accrued expenses.
On October 16, 1996, the Company entered into a Factoring Agreement (the
"Agreement") with Heller Small Business Finance, a division of Heller Financial,
Inc. ("Heller"). The Agreement granted Heller an assignment of the CAS-MOS
contract accounts receivable and proceeds thereon as collateral for a line of
credit which is expected not to exceed $2,000,000. The term of the Agreement is
two years, with an option for FII to terminate the Agreement after one year, if
the Company is able to obtain traditional bank financing. Heller charges a
discount fee of .8% of the invoice amount purchased and an interest rate of
prime plus 1% until the invoice is paid. The Agreement includes a minimum fee to
Heller, inclusive of all interest charges, of $60,000 per annum. The January 31,
1997 balance of $71,461 due Heller is shown in the balance sheet as Notes
Payable under Current Liabilities.
The Company operates in a capital intensive industry. Typically, major
costs are incurred in connection with the initiation of a new contract. These
costs can be reduced through leasing arrangements and advance payments from
customers, if these are obtainable. The Company believes that it will be able to
arrange through available means the financing of these initial contract costs
when necessary, although no assurance can be given.
<PAGE> 13
PART II - OTHER INFORMATION
Item 1. Legal Proceedings. To the best knowledge of the officers and
directors, neither the Company nor any of its officers and directors
are party to any legal proceeding or litigation. The officers and
directors know of no such litigation being threatened or
contemplated.
Item 2. Changes in Securities. None.
Item 3. Defaults Upon Senior Securities. None.
Item 4. Submission of Matters to a Vote of Security Holders.
(a) The Annual Shareholders Meeting of the Company was held on
December 10, 1996.
(b) The following directors were elected or their term of office as a
director continued after the meeting:
David E. Sandlin, Wayne M. Richmon, John R. Bone, C. Lofton
Fouts, James N. Lingan and Vice Admiral Richard M. Dunleavy
(c) The following is a brief description of matters voted upon by
shareholders at the Annual Meeting and the results of the vote:
(i) Proposal to Increase the Authorized Number of Shares of
Capital Stock of the Company from 1,000,000 Shares of New
Common Stock to 10,000,000 Shares of New Common Stock, Par
Value $.01 Per Share: Approved by majority vote of those
shareholders present at the meeting in person or by proxy.
(ii) Election of Directors: Approved by majority vote of those
shareholders present at the meeting in person or by proxy.
(iii) Ratification of BDO Seidman as the Company's Independent
Auditors for the Fiscal Year Ended April 30, 1997: Approved by
majority vote of those shareholders present at the meeting in
person or by proxy.
Item 5. Other Information. None.
Item 6. (a) Exhibits.
<PAGE> 14
Exhibit Number and Description
27.1 Financial Data Schedule
(b) Reports on Form 8-K. None.
<PAGE> 15
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
has caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
Dated: March 10, 1997 THE FLIGHT INTERNATIONAL GROUP,
INC.
By: /s/ David E. Sandlin
---------------------------
David E. Sandlin
Principal Executive Officer
By: /s/ Wayne M. Richmon
---------------------------
Wayne M. Richmon
Principal Financial Officer
<PAGE> 16
EXHIBIT INDEX
Exhibit
Number Description Page
------- ----------- ----
27.1 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the Flight
International Group, Inc.'s unaudited condensed consolidated financial
statements for the quarterly period ended January 31, 1997 and is qualified in
its entirety by reference to such unaudited condensed consolidated financial
statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> APR-30-1996
<PERIOD-START> NOV-01-1996
<PERIOD-END> JAN-31-1997
<CASH> 107,485
<SECURITIES> 0
<RECEIVABLES> 2,341,213
<ALLOWANCES> 52,068
<INVENTORY> 1,710,054
<CURRENT-ASSETS> 5,739,501
<PP&E> 5,571,053
<DEPRECIATION> 1,177,938
<TOTAL-ASSETS> 10,182,748
<CURRENT-LIABILITIES> 3,879,819
<BONDS> 0
9,990
0
<COMMON> 0
<OTHER-SE> 1,385,563
<TOTAL-LIABILITY-AND-EQUITY> 10,182,748
<SALES> 4,214,062
<TOTAL-REVENUES> 4,214,062
<CGS> 3,754,596
<TOTAL-COSTS> 4,420,856
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 118,978
<INCOME-PRETAX> (325,772)
<INCOME-TAX> 3,338
<INCOME-CONTINUING> (329,110)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (329,110)
<EPS-PRIMARY> 0.33
<EPS-DILUTED> 0.33
</TABLE>
