CONFORMED
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period _______________________ to _________________________
Commission File Number 1-12902
-------------
FRONTIER ADJUSTERS OF AMERICA, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Arizona 86-0477573
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
45 East Monterey Way, Phoenix, AZ 85012
- --------------------------------------------------------------------------------
(Address of principal executive offices)
(602) 264-1061
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
- --------------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last report
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
Number of shares of Common Stock outstanding on April 30, 1997 4,605,358
----------
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements
- -----------------------------
FRONTIER ADJUSTERS OF AMERICA, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, 1997 June 30, 1997
-------------- -------------
(unaudited) (*)
<S> <C> <C>
ASSETS
------
CURRENT ASSETS
Cash and cash equivalents $1,308,205 $ 534,540
Investments 1,244,887 1,249,463
Receivables 1,528,573 1,549,185
Prepaid expenses 182,124 288,893
Other 165,151 159,451
---------- ----------
TOTAL CURRENT ASSETS 4,428,940 3,781,532
---------- ----------
PROPERTY AND EQUIPMENT 2,435,366 2,436,167
Less accumulated depreciation and amortization 676,638 881,766
---------- ----------
1,758,728 1,554,401
---------- ----------
OTHER ASSETS
Cost of subsidiary in excess of net tangible assets acquired 213,817 213,817
Less accumulated amortization 176,240 174,508
---------- ----------
37,577 39,309
Receivables (Long term) 354,000 327,000
Investments (Long term) 751,207 750,730
Other 391,205 422,780
---------- ----------
1,533,989 1,539,819
---------- ----------
TOTAL ASSETS $7,721,657 $6,875,752
========== ==========
LIABILITIES
-----------
CURRENT LIABILITIES
Accounts payable $ 29,717 $ 11,666
Accrued expenses 384,978 263,806
Franchisee/licensee remittance payable 407,792 135,518
Current portion long term liability 26,046 24,672
Other 228,745 149,308
---------- ----------
TOTAL CURRENT LIABILITIES 1,077,278 584,970
---------- ----------
LONG TERM LIABILITY 40,273 59,983
---------- ----------
STOCKHOLDERS' EQUITY
Common stock 47,820 47,820
Additional paid in capital 2,148,470 2,148,470
Treasury stock (529,584) (485,219)
Other (7,616) (6,691)
Retained earnings 4,945,016 4,526,419
---------- ----------
6,604,106 6,230,799
---------- ----------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $7,721,657 $6,875,752
========== ==========
</TABLE>
*Condensed from audited financial statements.
The accompanying notes are an integral part of these condensed statements.
2
<PAGE>
FRONTIER ADJUSTERS OF AMERICA, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
March 31, March 31,
----------------------- ------------------------
1997 1996 1997 1996
------ ------ ------ ------
<S> <C> <C> <C> <C>
REVENUES
Continuing licensee and
franchisee fees $3,993,862 $3,695,428 $1,305,133 $1,253,200
Adjusting fees 660,627 462,202 180,632 143,434
---------- ---------- ---------- ----------
4,654,489 4,157,630 1,485,765 1,396,634
---------- ---------- ---------- ----------
COST AND EXPENSES
Compensation and employee benefits 1,854,557 1,457,540 591,675 508,900
Office 283,675 286,646 81,316 81,816
Advertising and promotion 261,176 320,333 121,088 134,397
Depreciation and amortization 173,974 136,297 59,807 47,740
Provision for doubtful accounts 135,000 115,000 45,000 45,000
Other 564,655 588,100 195,622 157,786
---------- ---------- ---------- ----------
3,273,037 2,903,916 1,094,508 975,639
---------- ---------- ---------- ----------
INCOME FROM OPERATIONS 1,381,452 1,253,714 391,257 420,995
---------- ---------- ---------- ----------
OTHER INCOME (EXPENSE)
Interest income 113,738 105,272 39,562 35,149
Other (Net) 52,956 20,570 6,419 4,272
---------- ---------- ---------- ----------
TOTAL OTHER INCOME (EXPENSE) 166,694 125,842 45,981 39,421
---------- ---------- ---------- ----------
INCOME BEFORE INCOME TAXES 1,548,146 1,379,556 437,238 460,416
INCOME TAXES 610,899 542,982 172,101 181,475
---------- ---------- ---------- ----------
NET INCOME $ 937,247 $ 836,574 $ 265,137 $ 278,941
========== ========== ========== ==========
Weighted Average Shares
outstanding 4,608,489 4,619,120 4,605,358 4,609,658
========== ========== ========== ==========
NET INCOME PER COMMON SHARE $ .20 $ .18 $ .06 $ .06
========== ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these condensed statements.
3
<PAGE>
FRONTIER ADJUSTERS OF AMERICA, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Nine Months Ended March 31, 1997 and 1996
<TABLE>
<CAPTION>
1997 1996
---------- ----------
<S> <C> <C>
NET INCOME $ 937,247 $ 836,574
---------- ----------
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization:
Operations 173,974 136,297
Other 1,092 --
(Gain) on disposition of property and equipment (24,775) (1,667)
Allowance for doubtful accounts (7,542) 115,000
Change in assets and liabilities:
(Increase) decrease in:
Receivables 228,903 333,495
Prepaid expenses 106,769 56,299
Other (57,130) (58,833)
Increase (decrease) in:
Accounts payable 18,051 59,425
Accrued expenses 121,172 (34,847)
Franchisee and licensee remittance payable 272,274 (66,285)
Other 79,437 34,577
---------- ----------
Total adjustments 912,225 573,461
---------- ----------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 1,849,472 1,410,035
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (283,171) (74,306)
Investments purchased (1,948,737) (1,982,602)
Proceeds from sales of investments 2,000,000 2,000,000
License acquisition (85,500) (64,000)
Payments on License acquisition (68,336) (17,057)
Advances to licensees and franchisees (2,883,089) (2,951,987)
Collections of advances to licensees and franchisees 2,756,041 2,711,148
---------- ----------
NET CASH PROVIDED (USED IN) BY INVESTING ACTIVITIES (512,792) (378,804)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash dividends (518,650) (485,108)
Common stock repurchased (44,365) (95,817)
---------- ----------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (563,015) (580,925)
---------- ----------
NET INCREASE (DECREASE) IN CASH 773,665 450,306
Cash at beginning of the period 534,540 358,960
---------- ----------
Cash at the end of the period $1,308,205 $ 809,266
========== ==========
Supplemental disclosures of Cash Flow information
Cash paid during the period
Income taxes $ 632,349 $ 577,767
Interest $ 6,095 $ 5,457
</TABLE>
The accompanying notes are an integral part of these condensed statements.
4
<PAGE>
FRONTIER ADJUSTERS OF AMERICA, INC.
AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
(1) Basis of Presentation
---------------------
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
statement of results of operations for the interim periods.
The results of operations for the three and nine month periods ended March
31, 1997 are not necessarily indicative of the results to be expected for
the full year.
(2) Supplemental Cash Flow Information
----------------------------------
On August 19, 1996, the Company reacquired the license for the St.
Petersburg/Clearwater, Florida territory. The purchase price was $75,000 to
be paid $25,000 on date of purchase and monthly payments of $2,000 plus
interest at the prime rate plus 2%. As of December 31, 1996, the Company had
paid the $25,000 down and $6,000 towards the balance. On January 6, 1997,
the Company paid $44,000 representing the balance of the purchase price at
that date.
Item 2 - Management's Discussion and Analysis of Financial Condition and
Results of Operations
The statements contained in this Report on Form 10-Q that are not purely
historical are forward looking statements within the meaning of Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, including statements regarding the
Company's "expectations", "anticipation", "intentions", "beliefs", or
"strategies" regarding the future. Forward looking statements include
statements regarding revenue, margins, expenses, and earnings analysis with
regard to the Company or with regard to the Company's licensees and
franchisees for the remainder of fiscal 1997 and thereafter; improvement of,
and growth in the number of, licensees and franchisees; future spending on
marketing and product development strategy; and liquidity and anticipated
availability of cash for operations, acquisitions, or payment of dividends.
All forward looking statements included in this document are based on
information available to the Company on the date of this Report, and the
Company assumes no obligation to update any such forward looking statement.
It is important to note that the Company's actual results could differ
materially from those in such forward looking statements. Among the factors
that could cause actual results to differ materially are the factors
discussed in this Report, including but not limited to the extent and nature
of natural disasters in geographic areas serviced by the Company or by its
licensees and franchisees; management decisions by insurance companies and
self-insureds to increase or decrease the degree to which they contract for
services offered by the Company, its licensees or franchisees; the Company's
ability to identify and attract new qualified licensees and franchisees; the
Company's ability to successfully manage offices reacquired from existing
licensees and franchisees; and uninsured liability for acts or omissions of
the Company's employees, licensees, or franchisees.
Financial Condition
-------------------
The Company has historically financed its growth and on going operations
with cash generated from operations. In the nine months ended March 31,
1997, the Company's operations generated $1,849,000 in cash.
Compared to the last fiscal year, the most significant item affecting cash
provided by the Company's operations is the $272,000 increase in franchisee
and licensee remittance payable. The Company, pursuant to agreements with
its licensees and franchisees, acts as a collection agent for all of its
licensees. The Company remits to its licensees the collections, less the
on-going license fee and any amounts due the Company, such as loan
repayments, errors and omissions insurance premium. The day of the week that
the Company's fiscal period ends, therefore, can have a significant effect
on the reported amount that is due to licensees and franchisees.
5
<PAGE>
The Company's financial statements as of March 31, 1997 reflect net
collections payable to franchisees for two days of $408,000 and as of June
30, 1996 which reflects collections for one day of $136,000.
In August 1996 the Company acquired 14,300 shares of the Company's common
stock at a cost of $44,365. The repurchase was authorized by the Board of
Directors as they believed that at the current price level the Company's
common stock was an excellent investment.
The Company's Board of Directors in May 1996, approved an increase in the
Company's annual dividend rate from 14 cents per share to 15 cents per share
effective with the 3.75 cents per share cash dividend paid on June 10, 1996.
The increase reflects the Board's policy that shareholders participate in
the Company's growth.
Through its capital investment program, the Company replaces obsolete or
outdated equipment and invests in new equipment and furnishings to maintain
or increase the productivity of the Company and its employees. The Company
anticipates investing between $100,000 to $200,000 in fiscal 1997 for
equipment and furnishings pursuant to its capital investment program.
Additionally, in October 1996 the Company acquired a parcel of land and
building adjacent to its Corporate offices. The purchase price was $170,000
and was paid during the second quarter of the Company's current fiscal year.
In March 1997 the company acquired the operations of its licensee in Las
Vegas / Henderson, Nevada for a purchase price of $50,000. The Company paid
the purchase price net of certain amounts owed by the prior Licensee to the
Company. The Company began operating the office on April 1, 1997.
Management believes that the Company will be able to fund all of its cash
requirements (i.e. current operations, capital asset acquisition and the
payment of dividends) from currently available cash funds generated from
operations.
The Company's ratio of current assets to current liabilities was 4.11 to 1
as of March 31, 1997 and 6.46 to 1 as of June 30, 1996.
Results of Operations - Nine Months Ended March 31, 1997 Compared to Nine
----------------------------------------------------------------------------
Months Ended March 31, 1996
---------------------------
Revenues
--------
The Company's revenues increased 12% or $497,000 to $4,654,000 during the
nine months ended March 31, 1997 from $4,158,000 in the same period of the
prior fiscal year. This increase represents a combined $198,000 increase in
adjusting and risk management fees and a $299,000 increase in continuing
licensee and franchisee fees.
The increase of $198,000 in adjusting and risk management fees from $462,000
in the nine months ended March 31, 1996 to $661,000 for the nine months
ended March 31, 1997 represents a 43% increase. A substantial portion of
this increase is related to a major storm that occurred in mid August 1996
in the Phoenix, Arizona metropolitan area where the Company has claims
offices. Claims resulting from this storm provided the Company with $100,000
in adjusting services revenues in the nine months ended March 31, 1997.
Additionally, the Company had an increase in fees of $70,000 from its Tucson
office which was acquired from a licensee in the first quarter of the prior
fiscal year. The balance of the increase represents an increase in the
demand for the services provided by Company owned offices.
The Company's revenues from continuing licensee and franchisee fees
increased 8% or $298,000 from $3,695,000 in the nine months ended March 31,
1996 to $3,994,000 in the nine months ended March 31, 1997. This increase
reflects the benefit to the Company's licensees and franchisees from an
increase in claims as insurance companies and self-insureds use their
services due to an increase in volume of claims. Also, to a greater degree,
this increase reflects the effect of new licensees and franchisees and rate
increases.
The Company's revenues are affected by numerous matters including the work
loads of other companies and claims presented by their clients. The Company
has, however, seen growth in licensee and franchisee fees paid. The Company
is committed to continue its work to improve existing and to add qualified
licensees and it will
6
<PAGE>
continue to see growth in licensee and franchisee fees collected in the
future. However, recent competition with respect to nationwide purchasers of
the services of the Company's licensees and franchisees has become
significantly more competitive. The Company attempts to procure nationawide
accounts for services on behalf of its licensees and franchisees. Should the
Company be unable to procure such accounts on terms as favorable as in the
past, or should the Company fail to be the successful bidder on such
accounts and be unable to replace the accounts the Company's results of
operations could be materially adversely affected. In addition, the
Company's results of operations are affected by the revenues from its Tucson
operation and will begin to be affected by the revenues from the recently
purchased Las Vegas/Henderson operations. The Las Vegas/Henderson operation
had gross billings of $158,000 for the former Licensee in the previous
twelve months ending March 31, 1997. For the reasons set forth above, the
Company is unable to project its future revenues.
Compensation and Fringe Benefits
--------------------------------
Compensation and fringe benefits represent approximately 57% of the
Company's costs and expenses and represent the largest single item of
expense. These expenses increased 27% or $397,000 from $1,458,000 in the
nine months ended March 31, 1996 to $1,855,000 in the current nine month
period. This increase is the result of the addition of an Executive Vice
President to the Company's management team, additional employees hired
including temporary employees to handle increased work loads in the
Corporate office, increased bonus related to the Company's rising income and
cost of living and merit increases given to employees.
Expenses Other Than Compensation and Fringe Benefits
----------------------------------------------------
The Company's expenses other than compensation and fringe benefits decreased
$28,000 during the nine months ended March 31, 1997 as compared to the same
period of the prior fiscal year. The principal items affecting these
expenses are a $19,000 decrease in legal expenses, a $37,000 increase in
depreciation expense due to capital expenditures in the current fiscal year,
and a $59,000 decrease in advertising and promotion expense representing
advertising not placed in the current year that was placed in the previous
year.
The balance of the Company's costs and expenses have not significantly
changed from the same period of the prior year.
Income Taxes
------------
The Company's income taxes for the nine months ended March 31, 1997 were 39%
of its income before taxes, or approximately the same as they were in the
same period of the prior fiscal year. Changes made in the tax laws by
various states and by the federal government have not had a material affect
on the Company's current overall tax rates, however, this could change at
any time.
Other Income
------------
The Company's other income increased $41,000 or 32% from $126,000 in the
nine months ended March 31, 1996 to $167,000 in the current nine month
period. The most significant items affecting other income are a $7,000
increase in miscellaneous income, a $8,000 increase in interest income and a
$23,000 gain on the disposition of capital equipment.
Net Income
----------
The Company's net income for the nine months ended March 31, 1997, increased
$101,000 or 12% from $837,000 in the nine months ended March 31, 1996 to
$937,000 in the current period. The most significant items affecting net
income were the $497,000 increase in revenues, the $397,000 increase in
compensation and fringe benefits, and the $41,000 increase in other income.
7
<PAGE>
Results of Operations - Three Months Ended March 31, 1997 Compared to Three
----------------------------------------------------------------------------
Months Ended March 31, 1996
---------------------------
Revenues
--------
The Company's revenues increased 6% or $89,000 to $1,486,000 in the three
months ended March 31, 1997 from $1,397,000 in the same period of the prior
fiscal year. This increase represents a combined $37,000 increase in
adjusting and risk management fees and a $52,000 increase in continuing
licensee and franchisee fees.
The increase of $37,000 in adjusting and other fees of Company owned offices
from $143,000 in the three months ended March 31, 1996 to $181,000 in the
three months ended March 31, 1997 represents a 26% increase. The increase
reflects an increase in the demand for the Company's services as well as
revenues from the Company's Tucson operation acquired in August of 1995.
The Company's revenues from continuing licensee and franchisee fees
increased 4% or $52,000 from $1,253,000 in the three months ended March 31,
1996 to $1,305,000 in the three months ended March 31, 1997. This increase
reflects the benefit of the Company's licensees and franchisees from an
increase in claims as insurance companies and self-insureds used their
services due to an increase in volume of claims. Also, to a greater degree,
this increase reflects the effect of new licensees and franchisees and rate
increases.
The Company's revenues are affected by numerous matters including the work
loads of other companies and claims presented by their clients. The Company
has, however, seen growth in licensee and franchisee fees paid. The Company
is committed to continue its work to improve existing and to add qualified
licensee and franchisees to the Frontier network and the Company believes
that it will continue to see growth in licensee and franchisee fees
collected in the future. However, recent competition with respect to
nationwide purchasers of the services of the Company licensees and
franchisees has become significantly more competitive. The Company attempts
to procure nationwide accounts for services on behalf of its licensees and
franchisees. Should the Company be unable to procure such accounts on terms
as favorable as in the past, or should the Company fail to be the successful
bidder on such accounts and be unable to replace the accounts, the Company's
results of operations could be materially adversely affected. In addition,
the Company's results of operations are affected by the revenues from its
Tucson operation and will begin to be affected by the revenues from the
recently purchased Las Vegas/Henderson operations. The Las Vegas/Henderson
operation had gross billing of $158,000 for the former licensee in the
previous twelve months ending March 31, 1997. For the reasons set forth
above, the Company is unable to project its future revenues.
Compensation and Fringe Benefits
--------------------------------
Compensation and fringe benefits represented approximately 54% of the
Company's costs and expenses and represent the largest single item of
expense. These expenses increased 16% or $83,000 from $509,000 in the three
months ended March 31, 1996 to $592,000 in the three months ended March 31,
1997. The increase is the result of the addition of an Executive Vice
President to the Company's management team, the addition of employees to
handle the increased work load in the corporate office, increased bonuses
tied to income and for cost of living and merit raises given to employees.
Expenses Other Than Compensation and Fringe Benefits
----------------------------------------------------
The Company's expenses other than compensation and fringe benefits increased
$36,000 during the three months ended March 31, 1997 as compared to the same
quarter of the prior fiscal year. The principal items affecting these
expenses were a $39,000 increase in legal expenses and a $13,000 decrease in
advertising and promotion expenses, and a $12,000 increase in depreciation
expense.
The balance of the Company's costs and expenses did not significantly
changed from the same period of the prior fiscal year.
Income Taxes
------------
The Company's income taxes for the three months ended March 31, 1997, were
39% of its income before taxes, or approximately the same as they were in
the same period of the prior fiscal year. Changes made in the tax laws by
various states and by federal government did not have a material affect on
the Company's overall tax rates, however, this could change at any time.
8
<PAGE>
Other Income
------------
The Company's other income increased $7,000 or 17% from $39,000 in the three
months ended March 31, 1996 to $46,000 in the three months ended March 31,
1997. The most significant items affecting other income was a $4,000
increase in interest income and a $3,000 increase in miscellaneous income.
Net Income
----------
The Company's net income for the three months ended March 31, 1997 decreased
$14,000 from $279,000 in the three months ended March 31, 1997 to $265,000.
The most significant items affecting net income were the $89,000 increase in
revenues, the $83,000 increase in compensation and fringe benefits and the
$36,000 increase in other expenses.
PART II: OTHER INFORMATION
Item 1 - Legal Proceedings
In August 1995, Mark Brockbank and Alan Bird individually and on behalf of
certain Underwriters at Lloyd's, London, a client of a former franchisee of
the Company, filed a complaint against multiple defendants, including the
Company, in the District Court of Dallas County, Texas. The complaint arises
from the alleged embezzlement of over $700,000 by the former franchisee. The
complaint alleges claims against the Company including breach of contract,
breach of fiduciary duty, negligence, negligent supervision, negligent
misrepresentation and negligent licensing. The complaint seeks unspecified
damages from the Company. The Company's insurance carrier is defending the
suit subject to a reservation of rights. The Company is vigorously
contesting the plaintiff's allegations as to the Company and believes that
its defenses are meritorious. The Company does not believe that the results
of this litigation will have a material adverse effect on the Company's
results of operations.
From time to time in the normal course of its business, the Company is named
as a defendant in lawsuits. The Company does not believe that it is subject
to any such lawsuits or litigation or threatened lawsuits or litigation that
will have a material adverse effect on the Company or its business.
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.
FRONTIER ADJUSTERS OF AMERICA, INC.
Date: 5/12/97 /s/ William J. Rocke
------------------- ------------------------------------------
William J. Rocke, Chief Executive Officer/
Chairman of the Board, Director
Date: 5/12/97 /s/ Jean E. Ryberg
------------------- ------------------------------------------
Jean E. Ryberg, President, Director
9
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL
INFORMATION EXTRACTED FROM THE CONDENSED
CONSOLIDATED BALANCE SHEET AT MARCH 31, 1997
(Unaudited) AND THE CONDENSED CONSOLIDATED
STATEMENT OF INCOME FOR THE NINE MONTHS
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-START> JUL-01-1996
<PERIOD-END> MAR-31-1997
<CASH> 1,308,205
<SECURITIES> 1,244,887
<RECEIVABLES> 1,766,031
<ALLOWANCES> 237,458
<INVENTORY> 0
<CURRENT-ASSETS> 4,428,940
<PP&E> 2,435,366
<DEPRECIATION> 676,638
<TOTAL-ASSETS> 7,721,657
<CURRENT-LIABILITIES> 1,077,278
<BONDS> 40,273
0
0
<COMMON> 47,820
<OTHER-SE> 6,556,286
<TOTAL-LIABILITY-AND-EQUITY> 7,721,657
<SALES> 0
<TOTAL-REVENUES> 4,654,489
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3,138,037
<LOSS-PROVISION> 135,000
<INTEREST-EXPENSE> 5,984
<INCOME-PRETAX> 1,548,146
<INCOME-TAX> 610,899
<INCOME-CONTINUING> 937,247
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 937,247
<EPS-PRIMARY> .20
<EPS-DILUTED> .20
</TABLE>
