UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
(X) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 30, 1997
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
( ) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from to
Commission File Number 0-13084
WARRANTECH CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 13-3178732
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
300 Atlantic Street, Stamford, CT 06901
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (203) 975-1100
(Former name,former address and former fiscal year, if changed since last year)
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.
Class Outstanding at September 30, 1997
Common stock, par value $.007 per share 13,323,898 shares
WARRANTECH CORPORATION AND SUBSIDIARIES
I N D E X
Page No.
PART I - Financial Information:
Item 1. Financial Statements:
Condensed Consolidated Balance Sheet at September 30, 1997
(Unaudited) and March 31, 1997. ............... 3
Condensed Consolidated Statement of Operations
For the Six and Three Months Ended September 30, 1997
and 1996 (Unaudited) .......................... 4
Condensed Consolidated Statement of Cash Flows
For the Six Months Ended September 30, 1997
and 1996 (Unaudited) ......................... 5
Notes to Condensed Consolidated Financial Statements..... 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations ......... 8
PART II - Other Information 11
Signatures ......................................................... 13
WARRANTECH CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
A S S E T S
Sept 30, March 31,
-------------------------------
1997 1997
------------- --------------
(Unaudited)
<S> <C> <C>
Current Assets:
Cash and cash equivalents $ 18,256,547 $ 17,031,925
Investments in marketable securities 329,671 286,099
Accounts receivable, (net of allowances of
$412,095 and $300,328, respectively) 27,336,961 23,290,035
Other receivables, net 6,082,977 3,874,451
Income tax receivable - 115,064
Prepaid expenses and other current assets 2,073,766 1,633,699
------------- --------------
Total Current Assets 54,079,922 46,231,273
------------- --------------
Property and Equipment - Net 11,881,727 10,111,193
------------- --------------
Other Assets:
Excess of cost over fair value of assets acquired
( net of accumulated amortization of
$3,878,731 and $3,637,233, respectively) 3,409,902 3,651,400
Deferred income taxes 2,252,109 2,009,941
Investments in marketable securities 2,056,892 2,041,001
Restricted cash 800,000 800,000
Split dollar life insurance policies 875,542 865,542
Notes receivable - long-term 788,007 42,076
Collateral security fund 199,389 199,389
Other assets 112,961 172,440
------------- --------------
Total Other Assets 10,494,802 9,781,789
------------- --------------
Total Assets $76,456,451 $66,124,255
============= ==============
See accompanying notes to condensed consolidated financial statements.
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES AND COMMON STOCKHOLDERS' EQUITY
Sept 30, March 31,
1997 1997
--------------- --------------
(Unaudited)
<S> <C> <C>
Current Liabilities:
Current maturities of long-term debt and
capital lease obligations $ 1,960,714 $ 1,997,835
Insurance premiums payable 24,619,351 19,602,290
Income taxes payable 1,025,214 -
Accounts and commissions payable 6,839,695 5,261,867
Legal settlements payable 1,400,000 1,635,000
Accrued expenses and other current liabilities 3,402,576 4,132,113
--------------- --------------
Total Current Liabilities 39,247,550 32,629,105
--------------- --------------
Deferred Revenues 5,783,806 5,019,190
--------------- --------------
Long-Term Debt and Capital Lease Obligations 2,280,162 2,491,786
--------------- --------------
Deferred Rent Payable 657,664 702,233
--------------- --------------
Convertible Exchangeable Preferred Stock
- - $.0007 par value
Authorized, 15,000,000 shares
Issued and outstanding 0 shares at September 30, 1997
and March 31, 1997
Common Stockholders' Equity:
Common stock - $.007 par value
Authorized - 30,000,000 shares
Issued - 13,323,898 shares
at September 30, 1997 and 13,261,636 shares
at March 31, 1997 91,347 90,911
Additional paid-in-capital 13,331,099 13,033,185
Unrealized loss on investments, net 3,483 (1,563)
Accumulated translation adjustments (4,392) 16,544
Retained earnings 15,611,798 12,714,914
--------------- --------------
29,033,335 25,853,991
Less: Deferred compensation (52,247) (78,231)
Treasury stock - at cost, 100,000 shares
at September 30, 1997 and March 31, 1997 (493,819) (493,819)
Total Common Stockholders' Equity 28,487,269 25,281,941
--------------- --------------
Total Liabilities, Preferred Stock and
Common Stockholders' Equity $76,456,451 $66,124,255
=============== ==============
</TABLE>
WARRANTECH CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
For the Six Months Ended For the Three Months Ended
September 30, September 30,
---------------------------------- ------------------------------------
1997 1996 1997 1996
-------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Gross revenues $103,518,665 $74,663,459 $50,191,635 $38,663,434
Revenues deferred to future periods (1,165,049) (849,802) (606,841) (388,574)
Deferred revenues earned 354,454 227,794 205,405 134,266
--------------- ---------------- ----------------- ----------------
Net revenues 102,708,070 74,041,451 49,790,199 38,409,126
-------------- ---------------- ----------------- ----------------
Costs and expenses:
Direct costs 74,767,349 53,518,931 35,822,264 27,345,232
Service, selling, and general and administrative 22,023,962 16,024,164 10,817,861 8,613,528
Provision for bad debt expense 108,674 41,156 - -
Depreciation and amortization 1,500,951 1,110,278 774,995 590,390
----------------- ---------------- ----------------- -------------
Total costs and expenses 98,400,936 70,694,529 47,415,120 36,549,150
------------------ ---------------- ----------------- --------------
Income from operations 4,307,134 3,346,922 2,375,079 1,859,976
------------------ ---------------- ----------------- --------------
Gain on sale of equity joint venture - 1,876,480 - -
Other income, net 395,911 175,886 198,532 72,866
--------------- ---------------- ---------------- --------------
Total other income (expense) 395,911 2,052,366 198,532 72,866
------------------ ---------------- ----------------- --------------
Income before provision for income taxes 4,703,045 5,399,288 . 2,573,611 1,932,842
Provision for income taxes 1,806,161 1,964,973 1,003,931 617,762
---------------- ---------------- -------------- --------------
Net income $ 2,896,884 $ 3,434,315 $ 1,569,680 $ 1,315,080
================== ================ =============== ==============
Earnings per share:
Primary $.19 $.24 $.10 $.09
Fully Diluted $.18 $.22 $.10 $.09
Weighted average number of shares outstanding:
Primary 15,548,094 14,514,255 15,567,276 14,718,305
Fully Diluted 15,705,676 15,361,778 15,717,314 15,361,778
</TABLE>
see
accompanying notes to condensed consolidated financial statements.
<TABLE>
<CAPTION>
WARRANTECH CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
For the Six Months
Ended September 30,
----------------------------------------------
1997 1996
--------------------- ---------------------
<S> <C> <C>
Net cash provided by operating activities $ 4,976,983 $ 4,378,428
--------------------- ---------------------
Cash flows from investing activities:
Purchase of property and equipment ( 2,129,103) ( 2,080,423)
Investment in marketable securities (241,562) ( 498,643)
Proceeds from sale of marketable securities 184,225 275,162
--------------------- ---------------------
Net cash (used in) investing activities ( 2,186,440) ( 2,303,904)
Cash flows from financing activities:
(Increase) decrease in notes receivable ( 745,931) 11,836
Proceeds from exercise of common stock options 298,350 -
Payments on capital leases ( 708,340) ( 448,229)
Payments on long-term note payable ( 410,000) ( 410,000)
--------------------- ---------------------
Net cash (used in) provided by financing activities ( 1,565,921) ( 846,393)
Net increase (decrease) in cash and cash equivalents 1,224,622 1,228,131
Cash and cash equivalents at beginning of period 17,031,925 11,859,487
--------------------- ---------------------
Cash and cash equivalents at end of period $ 18,256,547 $ 13,087,618
===================== =====================
Supplemental Cash Flows Information:
Cash Payments for the Periods:
Interest $ 157,962 $ 151,306
===================== =====================
Income taxes $ 902,375 $ 2,982,825
===================== =====================
Noncash Investing and Financing Activities:
Gain on sale of investment in joint venture $ - $ 1,876,480
Purchase of preferred stock - ( 6,420,363)
Note issued in connection with purchase of preferred stock - 2,395,960
Capital lease obligations incurred 869,595 917,326
See accompanying notes to condensed consolidated financial statements.
Page 5
</TABLE>
WARRANTECH CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
(Unaudited)
1. THE COMPANY
Warrantech, through its wholly-owned subsidiaries, Warrantech Automotive, Inc.
Warrantech Consumer Product Services, Inc., Warrantech Help Desk, Inc.,
Warrantech Direct, Inc., Warrantech Home Service Company and Warrantech
International, Inc., markets and administers service contract programs for
retailers, distributors and manufacturers of automobiles, homes, home
appliances, home entertainment products, computers and peripherals, and office
and communication equipment call center services and technical computer
services, in the United States, Puerto Rico, Mexico, Canada, Caribbean, South
America, Central America and the United Kingdom. Additionally, third-party
administrative services are provided to manufacturers of consumer and
automotive products and other business entities requiring such services. The
actual repair service under such extended service contracts and limited
warranties is provided by third party repair facilities and the cost of such
repair services is borne by the insurance companies. The predominant terms of
the contracts and manufacturers' warranties range from twelve (12) to
eighty-four (84) months.
2. BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include all information
and footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the quarter ended September 30, 1997 are
not necessarily indicative of the results that may be expected for the year
ending March 31, 1998. For further information, refer to the consolidated
financial statements and footnotes thereto included in the Company's Form 10-K
for the year ended March 31, 1997.
3. JOINT VENTURE
In July, 1993, the Company and American International Group Inc. ("AIG")
formed a corporate joint venture, Techmark Services Ltd. ("Techmark" or the
"Joint Venture") owned fifty-one percent (51%) by AIG and forty-nine percent
(49%) by the Company.
Page 6
In conjunction with the foregoing alliance, in October, 1993, AIG purchased,
for a price of $6,430,000, options and a special issue of preferred stock which
was convertible into an issue of new shares of common stock which, subsequent
to its issuance, would be equivalent to twenty percent (20%) of the Company's
issued and outstanding common stock. Under the terms of this purchase
agreement, AIG had the right to purchase an increased interest in the Company,
to a maximum of thirty percent (30%) of the Company's issued and outstanding
common stock, if certain operating goals were achieved by the Company.
On April 18, 1996, the Company and AIG consummated an agreement for the
termination of the Techmark Joint Venture (the "Agreement"). Under the terms
of the Agreement, AIG agreed to purchase the Company's forty-nine (49%)
interest in the Joint Venture for $3,762,154 and the Company agreed to
repurchase the 3,234,697 shares of convertible preferred stock held by AIG for
its original redemption value of $6,430,000 and further relinquish their rights
to other options under the original agreement. As a result of this transaction,
the Company no longer has any investment in or liability to the Joint Venture
and will no longer record any equity in the operations of the Joint Venture.
The redemption value will be offset by the amount due the Company from the sale
of its investment, with the net amount due AIG of $2,395,960 resulting in a
three year, non-interest bearing note payable in 11 equal quarterly
installments of $205,000 commencing June 30, 1996 with a final installment of
$140,960 due March 31, 1999. In the event of default by the Company under the
note payable, the Company would be required to reissue to AIG preferred stock
for the remaining amount due at the default date.
At March 31, 1996, the Company's carrying value of its investment amounted to
$1,885,674 which resulted in a gain on the sale of the investment of
$1,876,480, recognized in the first quarter of fiscal 1997.
Also, as part of the agreement, AIG paid the Company $1,480,000 related to
amounts due the Company as of March 31, 1997, under its profit sharing
arrangement. In connection with this payment, the Company issued an
irrevocable letter of credit to the benefit of AIG through December 2002 which
can be drawn upon by AIG in the event the ultimate profit sharing amount due
the Company is less than the amount previously paid. It is anticipated at this
time that no amounts will be due AIG under the letter of credit.
Page 7
WARRANTECH CORPORATION AND SUBSIDIARIES
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Results of Operations
Gross revenues for the six month and three month periods ended September 30,
1997 amounted to $103,518,665 and $50,191,635, respectively as compared with
$74,663,459 and $38,663,434 for the same periods a year ago representing a 39%
and 30% increase for those periods, respectively. The increases in the six and
three month periods are directly attributable to approximately $9 million and
$5 million, respectively, related to new customers in both the consumer product
and automotive businesses and approximately $20 million and $6 million,
respectively, related to volume increases with existing customers and renewals
despite the loss and bankruptcy of two large
accounts.
The net increase in deferred revenues for the six month and three month periods,
ended September 30, 1997 as compared with the same period a year ago is
directly attributable to the increased number of service contracts sold with a
service period greater than one year during that period of time offset in part
by amounts earned on expiring contracts during the same period.
Direct costs are those costs directly related to the production and acquisition
of service contracts. Direct costs were $74,767,349 and $35,822,264 for the
six and three month periods ended September 30, 1997, respectively, as compared
with $53,518,931 and $27,345,232 for the comparable period in Fiscal 1996. The
increase is directly attributable to the volume increases in contracts sold and
a higher level of premium reflecting improved coverage on selected programs.
Service, selling and general and administrative expenses for the six and three
month periods ended September 30, 1997 were $22,023,962 and $10,817,861,
respectively, as compared with $16,024,164 and $8,613,528 for the six and three
month periods ended September 30, 1996. These increases are related to payroll,
payroll related and training costs arising from an increase in head count to
meet the service requirements associated with the increased number of service
contracts being sold as compared with the same levels a year ago and office
facilities expense associated with additional office space.
Page 8
The provision for bad debts results from the write-off of accounts considered
to be uncollectible for the respective periods.
The increase in depreciation and amortization for the six month and three month
periods ended September 30, 1997 over the comparable periods a year ago is the
result of increased depreciation resulting from capital additions related to
the Company's ongoing upgrade of its computer systems and the additional
equipment requirements resulting from the service level increases.
In April 1996, the Company and its international joint venture partner, AIG,
agreed to terminate the joint venture, Techmark Services Ltd., effective
January 1, 1996. Under the terms of the agreement, AIG agreed to purchase the
Company's forty-nine percent (49%) investment in the joint venture for
$3,762,154. As of March 31, 1996, the Company's carrying value of the joint
venture investment amounted to $1,885,674 which resulted in a pre-tax gain
recognized in the three month period ended June 30, 1996 amounting to
$1,876,480 and an after tax gain of $1,144,653 or $0.08 per share.
The provision for income taxes is based on the Company's projection of its
estimated effective tax rate for the fiscal year.
Net income for the six and three month periods ended September 30, 1997 was
$2,896,884 or $.19 per share and $1,569,680 or $.10 per share, respectively, as
compared with $3,434,315 or $.24 per share and $1,315,080 or $.09 per share,
respectively, calculated on the same basis a year ago. The earnings per share
for the three month period ended September 30, 1996 includes the effect of the
gain on the sale of the Company's joint venture in the first quarter of fiscal
1996 of $.08 per share (Refer to Footnote 3).
Liquidity and Financial Resources
The Company has an ongoing relationship with an equipment financing company an
intends to continue financing certain future equipment needs through leasing
transactions. The total amount financed through leasing transactions during the
six and three month periods ended September 30, 1997 amounted to $869,595 and
$323,600, respectively. The Company has a line of credit with a bank which
provides for a maximum aggregate borrowing up to $10 million. The line of
credit is secured by certain accounts receivable and has been renewed and now
expires on August 31, 1998. At September 30, 1997, the Company did not have
any borrowing under the line of credit.
The Company believes that internally generated funds will be sufficient to
finance its current operations for at least the next twelve months. Cash
provided by operations during the six month period ended September 30, 1997
amounted to $4,976,983 which is principally attributable to new accounts as
compared with comparable levels of accounts receivable at September 30, 1996.
Management believes that there are significant opportunities for growth through
acquisitions in the business services industry. In order to take full advantage
of such opportunities a Mergers and Acquisitions team has been formed. While
there can be no assurance that any transactions will materialize, to the extent
that capital resources are required in connection with any proposed transaction,
Page 9
the Company believes that it will be able to meet its needs through a
combination of available cash on hand, borrowings against its available bank
credit line, and additional third-party financing. Based on discussions with
third parties, the Company believes such funding will be available to the
Company if needed on acceptable terms, although such availability cannot be
assured.
In connection with the sale of the Company's joint venture interest to AIG, the
Company agreed to repurchase 3,234,697 shares of convertible exchangeable
preferred stock held by AIG at their redemption value of $6,430,000. This
amount was offset by the amount due the Company for the sale of its investment,
with the net amount due AIG of $2,395,960 resulting in a three year,
non-interest bearing note payable. The note is payable in 11 equal quarterly
installments of $205,000 commencing June 30, 1996, with a final installment of
$140,960 due March 31, 1999. Also, as part of the agreement, AIG agreed to pay
the Company $1,480,000 related to amounts due the Company under its profit
sharing arrangement. In connection with this payment, the Company issued an
irrevocable letter of credit to the benefit of AIG through December 31, 2002
which can be drawn against by AIG in the event that the ultimate profit sharing
amount due the Company is less than the amount paid. It is anticipated at this
time that no amounts will be due AIG under this letter of credit.
The effect of inflation has not been significant to the Company since its
formation.
Page 10
PART II. Other Information
Item 1. Legal Proceedings
A. The Oak Agency, Inc. and The Oak Financial Services, Inc.
(collectively, "Oak") v. Warrantech Dealer Based Services, Inc.
("WDBS").
This matter was tried in the U.S. District court, Northern
District of Illinois, during the week of May 19, 1997. The
following Judgment was entered on July 25, 1997: (I) WDBS is to
pay Oak the sum of $1,507,837.72 which represents commissions
earned by Oak during the period July 1, 1991 through May 31,
1997; (ii) WDBS is to pay Oak $28,500 which represents Oak's
costs of the action; and (iii) WDBS is to pay Oak future
commissions earned on vehicle service contracts sold at any time
on or after June 1, 1997 by a group of automobile dealers
identified by the Court (the "Oak Dealers").
Following entry of this Judgment, both parties filed a number of
motions with the court which resulted in the Judgment being
vacated on August 8, 1997. In a Memorandum and Order, issued on
October 16, 1997, the Court ruled on all pending motions. The
result of this ruling is that the financial terms of the
original Judgment remain unchanged except that WDBS' motion to
remove two automobile dealerships from the group of Oak Dealers
has been granted. The Company believes that the removal of these
dealers will reduce the amount of the award described in clause
(I) above by approximately $264,000 and will have a
corresponding effect on its ongoing obligation to pay
commissions to Oak on business written by the Oak Dealers as
described in clause (iii). The court has asked the parties to
make the necessary revisions to their previous calculations and
to submit a new form of Final Judgment for the court's review.
The Company continues to consider the legal options that will be
available to it following entry of Final Judgment.
B. Intercontinental Brokerage, Incorporated ("IBI") v.
Warrantech Consumer Product Services, Inc. and Warrantech
Corporation (collectively, "Warrantech").
This suit was filed in the 67th District court, Tarrant county,
Texas on October 10, 1997. IBI had provided various insurance
services to and on behalf of Warrantech over a period of years.
Warrantech asserts, however, that it terminated its relationship
with IBI in 1996 and has not requested or used IBI's services
since the date of termination. IBI alleges in this action that
it continued to perform services for Warrantech though June 30,
1997 and that it is entitled to be compensated for these
services under several theories of liability. IBI is seeking
specified damages of up to $1,330,000 as well as such other sums
as the Court may find it is entitled to recover.
The Company presently is preparing its Answer which must be
filed with the court within the statutorily required period.
Although it has not had sufficient time to fully review the
Complaint, the company denies the allegations and is considering
all of the legal rights and remedies available to it.
Page 11
Item 2. Changes in Securities
Not applicable.
Item 3. Defaults Upon Senior Securities
Not applicable.
Item 4. Submission of Matters to Vote of Security Holders
Not applicable.
Item 5. Other Information
Not applicable.
Item 6 (a) Exhibits
(11) Statement re: Computation of Per Share Earnings
(27) Financial Data Schedule
Item 6 (b) Reports on 8-K
None.
Page 12
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.
WARRANTECH CORPORATION
S/N/S Joel San Antonio
Joel San Antonio - Chairman of the Board
(Chief Executive Officer)
Date: November 6, 1997
S/N/S Harris Miller
Harris Miller Executive V.P. Customer Affairs
and Acting Chief Financial Officer
Date: November 6, 1997
Page 13
<TABLE>
<CAPTION>
WARRANTECH CORPORATION AND SUBSIDIARIES
EXHIBIT 11
STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS
(UNAUDITED)
For the Six Months Ended For the Three Months Ended
September 30, September 30,
----------------- -- ------------------- ----------------- -- ----------------
1997 1996 1997 1996
----------------- ------------------- ---------------- -----------------
<S> <C> <C> <C> <C>
Earnings:
Net income $ 2,896,884 $ 3,434,315 $ 1,569,680 $ 1,315,080
================= =================== ================= ================
Weighted average shares outstanding:
Primary:
Common shares 13,190,402 12,989,181 13,204,446 12,989,181
Assumed exercise of stock options 2,357,692 1,525,074 2,362,830 1,729,124
Assumed conversion of preferred stock - - - -
================= =================== ================= ================
15,548,094 14,514,255 15,567,276 14,718,305
================= =================== ================= ================
Fully diluted:
Common shares 13,190,402 12,989,181 13,204,446 12,989,181
Assumed exercise of stock options 2,515,274 2,372,597 2,512,868 2,372,597
Assumed conversion of preferred stock - - - -
================= =================== ================= ================
15,705,676 15,361,778 15,717,314 15,361,778
================= =================== ================= ================
Earnings Per Common Share:
Primary:
Net income $.19 $.24 $.10 $.09
================= =================== ================= ================
Fully diluted
Net income $.18 $.22 $.10 $.09
================= =================== ================= ================
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-END> SEP-30-1997
<CASH> 18,256,547
<SECURITIES> 329,671
<RECEIVABLES> 27,336,961
<ALLOWANCES> 412,095
<INVENTORY> 0
<CURRENT-ASSETS> 54,079,922
<PP&E> 20,256,663
<DEPRECIATION> 8,374,936
<TOTAL-ASSETS> 76,456,451
<CURRENT-LIABILITIES> 39,247,550
<BONDS> 0
<COMMON> 91,347
0
0
<OTHER-SE> 28,395,922
<TOTAL-LIABILITY-AND-EQUITY> 0
<SALES> 0
<TOTAL-REVENUES> 103,518,665
<CGS> 0
<TOTAL-COSTS> 98,400,936
<OTHER-EXPENSES> (553,872)
<LOSS-PROVISION> 108,674
<INTEREST-EXPENSE> 157,961
<INCOME-PRETAX> 4,703,045
<INCOME-TAX> 1,806,161
<INCOME-CONTINUING> 2,896,884
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,896,884
<EPS-PRIMARY> .19
<EPS-DILUTED> .18
</TABLE>
