<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 31, 1999
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 0-822
------------------------
THE OILGEAR COMPANY
-------------------
(Exact name of registrant as specified in its charter)
Wisconsin 39-0514580
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2300 South 51st Street, Milwaukee, Wisconsin 53219
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (414) 327-1700
- ----------------------------------------------------------------------
NOT APPLICABLE
- --------------------------------------------------------------------------------
(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
------- ------
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Class Outstanding March 31, 1999
- ----------------------------- --------------------------------
Common Stock, $1.00 Par Value 1,988,076
<PAGE> 2
PART I - FINANCIAL INFORMATION Page 2
Item 1. FINANCIAL STATEMENTS.
THE OILGEAR COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<TABLE>
<CAPTION>
Assets March 31, 1999 December 31, 1998
==============================================================================================================================
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 4,275,813 4,058,530
Trade accounts receivable less allowance for doubtful receivables
of $287,739 and $345,365 in 1999 and 1998, respectively 18,216,844 17,639,231
Inventories 28,744,544 30,084,072
Prepaid expenses 511,189 356,897
Other current assets 2,042,874 2,425,476
- ----------------------------------------------------------------------------------------------------------------------------
Total current assets 53,791,264 54,564,206
- ----------------------------------------------------------------------------------------------------------------------------
Property, plant and equipment, at cost
Land 1,060,089 1,124,031
Buildings 11,405,464 11,551,569
Machinery and equipment 47,607,362 47,846,176
Drawings, patterns and patents 3,827,375 3,773,156
- ----------------------------------------------------------------------------------------------------------------------------
63,900,290 64,294,932
Less accumulated depreciation and amortization (35,270,283) (34,814,532)
- ----------------------------------------------------------------------------------------------------------------------------
Net property, plant and equipment 28,630,007 29,480,400
Pension intangible 350,000 350,000
Other assets 6,235,006 6,464,320
- ----------------------------------------------------------------------------------------------------------------------------
$ 89,006,277 90,858,926
============================================================================================================================
<CAPTION>
Liabilities and Shareholders' Equity March 31, 1999 December 31, 1998
==============================================================================================================================
<S> <C> <C>
Current liabilities:
Short-term borrowings $122,540 144,178
Current installments of long-term debt 1,990,255 1,998,180
Accounts payable 5,251,221 7,784,829
Customer deposits 2,543,841 2,218,400
Accrued compensation 2,558,764 2,058,169
Other accrued expenses and income taxes 4,262,116 4,514,690
- ----------------------------------------------------------------------------------------------------------------------------
Total current liabilities 16,728,737 18,718,446
- ----------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Long-term debt, less current installments 24,919,335 24,557,893
Unfunded employee retirement plan costs 1,550,000 1,550,000
Unfunded postretirement health care costs 10,905,000 10,905,000
Other noncurrent liabilities 1,715,893 1,648,355
- ----------------------------------------------------------------------------------------------------------------------------
Total liabilities 55,818,965 57,379,694
- ----------------------------------------------------------------------------------------------------------------------------
Minority interest in consolidated subsidiaries 652,534 631,928
- --------------------------------------------------------------------------------
Shareholders' equity:
Common stock, par value $1 per share, authorized 4,000,000 shares;
issued 1,988,076 and 1,962,538 shares in 1999 and 1998, respectively 1,988,076 1,962,538
Capital in excess of par value 9,471,342 9,227,013
Retained earnings 23,371,304 23,027,483
- ----------------------------------------------------------------------------------------------------------------------------
34,830,722 34,217,034
Add (deduct):
Cost of common shares in treasury
1,975 in 1999, and 0 shares in 1998 (18,769) 0
Notes receivable from employees for purchase
of common stock of the Company (285,013) (193,338)
Other comprehensive income:
- --------------------------------------------------------------------------------
Equity adjustments from foreign currency translations (1,272,162) (456,392)
Equity adjustments for pension liability (720,000) (720,000)
- ----------------------------------------------------------------------------------------------------------------------------
(1,992,162) (1,176,392)
--------------------------------------------
Total shareholders' equity 32,534,778 32,847,304
- ----------------------------------------------------------------------------------------------------------------------------
$89,006,277 90,858,926
============================================================================================================================
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE> 3
THE OILGEAR COMPANY AND SUBSIDIARIES Page 3
CONSOLIDATED STATEMENTS OF EARNINGS
(UNAUDITED)
<TABLE>
<CAPTION>
FOR THREE MONTHS ENDED
MARCH 31
Operations 1999 1998
=========================================================================================================================
<S> <C> <C>
Net sales $23,209,883 21,971,038
Cost of sales 16,590,849 15,574,927
- -------------------------------------------------------------------------------------------------------------------------
Gross profit 6,619,034 6,396,111
Selling, general and
administrative expenses 5,602,920 5,528,828
------------------------------------------------------------------
Operating income 1,016,114 867,283
Interest expense (447,893) (461,756)
Other non-operating income 87,044 135,149
- -------------------------------------------------------------------------------------------------------------------------
Earnings before income taxes 655,265 540,676
Income taxes 152,547 125,000
- -------------------------------------------------------------------------------------------------------------------------
Net earnings before minority interest 502,718 415,676
Net earnings from minority interest 20,606 13,956
- -------------------------------------------------------------------------------------------------------------------------
Net earnings $482,112 401,720
- -------------------------------------------------------==================================================================
Basic earnings per share of common stock 0.25 0.21
==================================================================
Diluted earnings per share of common stock 0.25 0.21
- -------------------------------------------------------==================================================================
Dividend Per Share $0.07 0.07
- -------------------------------------------------------==================================================================
Basic weighted average outstanding shares 1,966,160 1,930,028
- -------------------------------------------------------==================================================================
Diluted weighted average outstanding shares 1,966,440 1,943,308
- -------------------------------------------------------==================================================================
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE> 4
THE OILGEAR COMPANY AND SUBSIDIARIES Page 4
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
FOR THREE MONTHS ENDED
MARCH 31
1999 1998
===============================================================================================================================
<S> <C> <C>
Cash flows from operating activities:
Net earnings $ 482,112 401,720
Adjustments to reconcile net earnings to net cash
provided (used) by operating activities:
Depreciation 936,330 1,024,567
Common stock issued in connection with:
Compensation element of sales to employees
and employee savings plan 41,816 33,585
Minority interest in consolidated subsidiaries 20,606 13,956
Change in assets and liabilities:
Trade accounts receivable (1,061,534) (2,904,984)
Inventories 889,541 (1,136,068)
Prepaid expenses (179,780) 135,355
Accounts payable (2,358,435) 442,378
Customer deposits 409,391 573,592
Accrued compensation 593,693 194,407
Other, net 313,330 (165,818)
- -------------------------------------------------------------------------------------------------------------------------------
Net cash provided (used) by operating activities 87,070 (1,387,310)
- -------------------------------------------------------------------------------------------------------------------------------
Cash flows from investing activities:
Capital expenditures (490,201) (1,377,774)
Investment in subsidiaries 0 0
- -------------------------------------------------------------------------------------------------------------------------------
Net cash used by investing activities (490,201) (1,377,774)
- -------------------------------------------------------------------------------------------------------------------------------
Cash flows from financing activities:
Net borrowings (repayments) under line-of-credit agreements (21,891) (76,627)
Repayment of long-term debt (405,385) (208,251)
Proceeds from issuance of long-term debt 851,787 1,869,710
Capital expenditures funded by restricted cash 227,390 794,487
Dividends paid (138,290) (135,718)
Purchase of treasury stock (18,769) 0
Proceeds from sale of treasury stock 0 0
Proceeds from sale of common stock 100,762 47,112
Payments received on notes receivable from employees 35,614 21,005
- -------------------------------------------------------------------------------------------------------------------------------
Net cash provided by financing activities 631,218 2,311,718
- -------------------------------------------------------------------------------------------------------------------------------
Effect of exchange rate changes on cash (10,804) 23,122
- -------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in cash and cash equivalents 217,283 (430,245)
Cash and cash equivalents:
At beginning of period 4,058,530 3,010,929
- -------------------------------------------------------------------------------------------------------------------------------
At end of period $ 4,275,813 2,580,685
- --------------------------------------------------------------------------------===============================================
Supplemental disclosures of cash flow information:
Cash paid during the period for:
===============================================
Interest $ 421,084 417,929
===============================================
Income taxes $ 48,289 40,873
- --------------------------------------------------------------------------------===============================================
<CAPTION>
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
FOR THREE MONTHS ENDED
MARCH 31
1999 1998
===============================================================================================================================
<S> <C> <C>
Net earnings $ 482,112 401,720
Other comprehensive income (loss):
Foreign currency translation adjustment (815,770) 91,940
- --------------------------------------------------------------------------------===============================================
Total comprehensive income (loss) ($333,658) 493,660
- --------------------------------------------------------------------------------===============================================
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE> 5
PAGE 5
THE OILGEAR COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
BASIS OF PRESENTATION
The financial statements reflect all adjustments which are, in the opinion of
management, necessary for a fair statement of the results for the interim
period. All such adjustments are of a normal recurring nature. Management
assumes the reader will have access to the December 31, 1998 Annual Report, a
copy of which is available upon request. These notes should be read in
conjunction with the Consolidated Financial Statements and the notes thereto in
the 1998 Annual Report.
BUSINESS DESCRIPTION AND OPERATIONS
The Oilgear Company focuses on one segment, the fluid power industry.
The Company provides advanced technology in the design and production of unique
fluid power components, systems and electronic controls. Products include piston
pumps, motors, valves, controls, manifolds, electronic systems and components,
cylinders, reservoirs, skids and meters. Industries that use these products are
primary metals, machine tool, automobile, petroleum, construction equipment,
chemical, plastic, glass, lumber, rubber and food. The products are sold as
individual components or integrated into high performance systems.
INVENTORIES
Inventories at March 31, 1999 and December 31, 1998 consist of the following:
<TABLE>
<CAPTION>
3-31-99 12-31-98
<S> <C> <C>
Raw materials $ 2,629,587 2,601,718
Work in process 22,586,538 23,196,578
Finished goods 5,363,419 6,281,776
30,579,544 32,080,072
LIFO reserve (1,835,000) (1,996,000)
Total $28,744,544 30,084,072
</TABLE>
Inventories stated on the last-in, last-out (LIFO) basis are valued at
$18,920,000 and $19,404,000 at March 31, 1999 and December 31, 1998,
respectively.
EARNINGS PER SHARE
The following table sets forth the computation of basic and diluted earnings per
common share:
<TABLE>
<CAPTION>
Three Months Ended
March 31, 1999 March 31, 1998
<S> <C> <C>
Net income for basic and diluted earnings per share $ 482,112 401,720
Weighted average common shares outstanding 1,966,160 1,930,028
Dilutive stock options 280 13,280
Dilutive average common shares outstanding 1,966,440 1,943,308
Basic earnings per common share $ .25 $ .21
Diluted earnings per common share $ .25 $ .21
</TABLE>
Options to purchase 61,742 shares of common stock with a weighted average
exercise price of $12.22 per share were outstanding at March 31, 1999. Options
to purchase 63,010 shares of common stock with a weighted average exercise price
of $11.91 per share were outstanding at March 31, 1998. Options to purchase
52,687 and 6,471 shares, respectively, of common stock were not included in the
March 31, 1999 and 1998 computation of diluted earnings per share because the
options' exercise prices were greater than the average market price of common
stock during the three month periods then ended.
RECLASSIFICATIONS
Certain 1998 engineering expenses have been reclassified from operating expenses
to cost of sales in the consolidated statements of earnings to conform with the
1999 presentation. The amount reclassified for the three month period ended
March 31, 1998 was approximately $363,000.
<PAGE> 6
Page 6
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
FINANCIAL CONDITION
Work in process and finished goods inventories decreased from their balances at
December 31, 1998 partially due to the shipment of a large components order that
was close to completion on December 31, 1998 but not shipped until January 1999.
A decrease in purchases related to system orders caused accounts payable to
decrease at March 31, 1999 compared to the accounts payable balance at December
31, 1998.
The Company's management believes the Company has adequate means for meeting
future capital needs.
RESULTS OF OPERATIONS
Primarily due to the weak U.S. fluid power market, orders for the first quarter
of 1999 were down by approximately 16% from the record first quarter of 1998.
The lagging demand in the U.S. fluid power market was particularly affected by
sluggish performance in the systems market for the forging, steel and wood
products sectors. Net sales for the first quarter of 1999 were approximately 6%
higher than the first quarter of 1998. While net sales were higher in the first
quarter of 1999, they were less than the orders for the first quarter of 1999
causing the backlog to increase to approximately $23,000,000, or by
approximately 4% from the levels at December 31, 1998.
The cost of goods sold as a percent of net sales increased during the first
quarter of 1999 by approximately 1% when compared to the first quarter of 1998.
Operating expenses stayed flat for the first quarter of 1999 when compared to
the first quarter of 1998.
Interest expense has decreased because interest rates decreased.
Non-operating income consists of the following:
<TABLE>
<CAPTION>
FOR THREE MONTHS ENDED
March 31,1999 March 31, 1998
- ----------------------------------------------------------------------------
<S> <C> <C>
Interest income $60,592 55,719
Foreign currency exchange gain 1,063 50,994
Miscellaneous, net 25,389 28,436
================================================================================
Non-operating income $87,044 135,149
================================================================================
</TABLE>
OTHER MATERIAL MATTERS
On April 20, 1999, the Company changed its policy of issuing previously unissued
shares of its common stock to the Savings Plus Plan (the "Savings Plan"), the
Company's 401(k) plan, to fill the needs of such plan when employees invest new
money in the Company's stock fund maintained by the Savings Plan. The Company
has instituted a policy of using shares of its common stock purchased on the
open market to fill the needs of the Savings Plan. As a result, the trading
volume of the Company's common stock may be affected by such purchases.
YEAR 2000 ISSUE
Some computer software and hardware identify dates by year but omit
which century the year falls into, therefore, these products may be unable to
distinguish between dates in the year 2000 and dates in the year 1900. That
inability (referred to as the "Year 2000 Issue"), if not addressed, could cause
computer applications or equipment using computer software or embedded chip
technology to fail or provide incorrect information when using dates after
December 31, 1999. The Company uses equipment with computer chips to run
many software programs for many of its business application systems including
order entry, engineering, production control, manufacturing, purchasing,
accounting and communications. The Company also manufacturers products that
incorporate components purchased from other manufacturers that contain computer
chips.
STATE OF READINESS
The Company has undertaken various initiatives intended to ensure that
its computer equipment and software will function properly with respect to dates
in the year 2000 and thereafter.
Information systems - The Company is inspecting its computer hardware
to ensure that it will be Year 2000 compliant and expects to finish upgrading or
replacing any equipment not Year 2000 compliant by June 30, 1999. Since most of
the Company's application system software was written by programmers employed by
the Company, that software was reviewed, updated and tested by the Company's
in-house programmers. This project was completed in March 1999. Software
purchased from outside vendors is being upgraded or replaced where necessary.
Manufacturing and facilities - The Company performed an initial review
and testing of its machine controls which did not reveal any problem with the
Year 2000 Issue. The Company is attempting to verify the ability of the machines
using electronic controls with embedded chip technology to properly perform
after December 31, 1999. Security systems and HVAC systems at the Company's
facilities are being tested for compliance with the Year 2000 Issue.
Communications - Telephone, fax, mailing equipment and e-mail systems
have been tested for the Year 2000 Issue and upgraded or replaced when not
compliant. All of these systems have been reviewed and now are Year 2000
compliant.
<PAGE> 7
Page 7
Third party relationships - The Company has mailed letters to its
significant vendors and service providers and is communicating with strategic
customers to determine the extent to which interfaces with such entities are
vulnerable to Year 2000 Issues and whether the products and services purchased
from or by such entities are Year 2000 compliant. All the vendors who replied to
the letter responded that they are addressing the Year 2000 Issue on a timely
basis. A follow-up letter was mailed to vendors who did not reply.
Costs incurred by the Company to date to address the Year 2000 Issue
have not been material and are expected to be less than $200,000. These costs
are expensed when incurred and are funded from operating cash flows.
RISKS AND CONTINGENCY PLANS
Although the Company believes its efforts will adequately address the
Year 2000 Issue internally, it is possible that the Company will be adversely
affected by problems encountered by its vendors or suppliers. Despite any
vendor's or supplier's certification regarding Year 2000 compliance there can be
no assurance that the vendor's or supplier's ability to provide goods and
services will not be adversely affected by the Year 2000 Issue. The most likely
worst case scenario would be that a failure by the Company or one or more of its
vendors or suppliers to adequately and timely address the Year 2000 Issue would
interrupt manufacturing of the Company's products for an undeterminable period
of time. The Company has identified and will continue to identify alternative
vendors should a vendor's ability to meet the Company's raw material and supply
requirements be affected by the Year 2000 Issue. While the Company believes it
can minimize the impact of such non-compliance through the use of these
alternative vendors, a disruption in production could have a material adverse
impact on the Company. The Company does not currently expect to develop a formal
contingency plan concerning the Year 2000 Issue.
GENERAL
The costs of the Company's efforts to address the Year 2000 Issue and
the dates on which the Company believes it will complete such efforts are based
upon management's best estimates, which were derived using numerous assumptions
regarding future events. There can be no assurance that these estimates will
prove to be accurate and actual results could differ materially from those
currently anticipated. Specific factors that could cause such material
differences include, but are not limited to, the Company's ability to identify,
assess, remediate and test relevant computer codes and embedded technology, the
Company's reliance on third-party assurances and the variability of definitions
of "Year 2000 compliance" which may be used by such third parties, and similar
uncertainties.
EURO CONVERSION
The Company has assessed the impact the Euro conversion will have on
its operations with regard to competition, currency risk, contracts, taxation
and information technology. The software needed by the Company to properly
process transactions in the Euro has been upgraded. The Company believes the
conversion to the Euro, which began in January 1999, will not have a material
adverse affect upon its business or its financial condition. However, there can
be no assurance that unforeseen difficulties and costs may not arise.
CAUTIONARY FACTORS
The discussions in this section and elsewhere contain various
forward-looking statements concerning the Company's prospects that are based on
the current expectations and beliefs of management. Forward-looking statements
may also be made by the Company from time to time in other reports and documents
as well as oral presentations. When used in written documents or oral
statements, the words "anticipate", "believe", "estimate", "expect",
"objective", and similar expressions are intended to identify forward-looking
statements. The statements contained herein and such future statements involve
or may involve certain assumptions, risks and uncertainties, many of which are
beyond the Company's control, that could cause the Company's actual results and
performance to differ materially from what is expected. In addition to the
assumptions and other factors referenced specifically in connection with such
statements, the following factors could impact the business and financial
prospects of the Company:
- Factors affecting the Company's international operations,
including relevant foreign currency exchange rates, which can
affect the cost to produce the Company's products or the ability
to sell the Company's products in foreign markets, and the value
in U.S. dollars of sales made in foreign currencies. Other
factors include foreign trade, monetary and fiscal policies; laws,
regulations and other activities of foreign governments, agencies
and similar organizations; and risks associated with having major
facilities located in countries, such as India, Spain and Italy,
which have historically been less stable than the U.S. in several
respects, including fiscal and political stability.
- Factors affecting the Company's ability to hire and retain
competent employees, including unionization of the Company's
non-union employees and changes in relationships with the
Company's unionized employees.
- The risk of strikes or other labor disputes at those locations
that are unionized which could affect the Company's operations.
- Factors affecting the economy generally, including the financial
and business conditions of the Company's customers and the demand
for customers' products and services that utilize Company
products.
- Factors affecting the Company's financial performance or
condition, including tax legislation, unanticipated restrictions
on the Company's ability to transfer funds from its subsidiaries
and changes in applicable accounting principles or environmental
laws and regulations.
- The cost and other affects of claims involving the Company's
products and other legal and administrative proceedings, including
the expense of investigating, litigating and settling any claims.
- Factors affecting the Company's ability to produce products on a
competitive basis, including the availability of raw materials at
reasonable prices.
- Unanticipated technological developments that result in
competitive disadvantages and create the potential for impairment
of existing assets.
- Financial and information system problems resulting from the
advent of the twenty-first century and affecting the Company, its
suppliers or its customers.
<PAGE> 8
Page 8
ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
The Companys' market risk exposure has not changed substanatially from the year
ended December 31, 1998. See item 7A Quantitative and Qualitative Disclosures
About Market Risk in the Company's annual report on Form 10-K for the year ended
December 31, 1998.
<PAGE> 9
Page 10
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits:
See Exhibit Index following the last page of this Form 10-Q which
Exhibit Index is incorporated herein by reference.
(b) Reports on Form 8-K:
No reports on Form 8-K have been filed during the quarter for which
this report is filed.
<PAGE> 10
Page 11
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.
5-13-99 THE OILGEAR COMPANY
- --------------------------------------------------------------------------------
Registrant
/s/ David A. Zuege
------------------------------------------
David A. Zuege
President and CEO
/s/ Thomas J. Price
------------------------------------------
Thomas J. Price
VP-Finance and Corporate Secretary
<PAGE> 11
Page 12
THE OILGEAR COMPANY
COMMISSION FILE NUMBER 0-822
EXHIBIT INDEX
Quarterly Report on Form 10-Q
For the Quarter Ended March 31, 1999
Exhibit
Number
- ------
27 The Oilgear Company Financial Data Schedule for the three
months ended March 31, 1999.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE UNAUDITED
FINANCIAL STATEMENTS OF THE OILGEAR COMPANY FOR THE THREE MONTHS ENDED MARCH 31,
1999 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> MAR-31-1999
<CASH> 4,275,813
<SECURITIES> 0
<RECEIVABLES> 18,216,844
<ALLOWANCES> 287,739
<INVENTORY> 28,744,544
<CURRENT-ASSETS> 53,791,264
<PP&E> 63,900,290
<DEPRECIATION> 35,270,283
<TOTAL-ASSETS> 89,006,277
<CURRENT-LIABILITIES> 16,728,737
<BONDS> 26,909,590
0
0
<COMMON> 11,459,418
<OTHER-SE> 21,075,360
<TOTAL-LIABILITY-AND-EQUITY> 89,006,277
<SALES> 23,209,883
<TOTAL-REVENUES> 23,209,883
<CGS> 16,590,849
<TOTAL-COSTS> 16,590,849
<OTHER-EXPENSES> 5,602,920
<LOSS-PROVISION> 18,825
<INTEREST-EXPENSE> 447,893
<INCOME-PRETAX> 655,265
<INCOME-TAX> 152,547
<INCOME-CONTINUING> 482,112
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 482,112
<EPS-PRIMARY> 0.25
<EPS-DILUTED> 0.25
</TABLE>
