<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
----------------------------------
Washington, D.C. 20549
Form 10Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended: June 30, 1997 Commission File No. 1-6963
ORIOLE HOMES CORP.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Florida 59-1228702
- -------------------------------- ------------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
1690 S. Congress Ave., Suite 200 Delray Beach, Fl. 33445
- -------------------------------------------------- -----------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (561) 274-2000
- --------------------------------------------------------------------------------
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, 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 issuers classes of
common stock, as of the close of the period covered by this report.
Class Outstanding at June 30, 1997
- ------------------------------------------ ---------------------------------
Common Stock, Class A, par value $.10 1,874,949
Common Stock, Class B, par value $.10 2,750,575
<PAGE> 2
ORIOLE HOMES CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
ASSETS
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
(Unaudited) (Audited)
------------- -------------
<S> <C> <C>
Cash and cash equivalents $ 6,712,379 $ 2,409,376
------------- -------------
Receivables:
Mortgage notes 275,197 277,205
Income taxes -- 2,398,914
------------- -------------
275,197 2,676,119
Inventories:
Land 70,445,489 90,105,428
Houses and condominiums completed or
under construction 50,086,449 51,080,872
Model houses and condominiums 5,389,513 4,776,274
------------- -------------
125,921,451 145,962,574
Less: Estimated costs of completion
included in inventories 11,558,655 14,184,967
------------- -------------
114,362,796 131,777,607
------------- -------------
Property and equipment (at cost):
Land 2,462,227 7,046,758
Buildings 19,954,974 20,728,053
Furniture, fixtures and equipment 4,858,831 4,724,882
------------- -------------
27,276,032 32,499,693
Less: Accumulated depreciation 9,988,467 9,648,463
------------- -------------
17,287,565 22,851,230
------------- -------------
Other:
Prepaid expenses 2,917,237 2,709,076
Unamortized debt issuance costs 1,620,743 1,810,237
Investment in and advances to joint ventures 4,663,000 6,531,000
Land held for investment (at cost) 2,353,423 2,346,772
Other assets 2,889,558 2,434,473
------------- -------------
14,443,961 15,831,558
------------- -------------
Total Assets $ 153,081,898 $ 175,545,890
============= =============
</TABLE>
See notes to consolidated financial statements
-1-
<PAGE> 3
ORIOLE HOMES CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
LIABILITIES AND SHAREHOLDERS' EQUITY
June 30, December 31,
1997 1996
(Unaudited) (Audited)
------------- -------------
Liabilities:
Line of credit $ 100,000 $ 2,700,000
Mortgage notes payable 12,541,782 12,641,501
Accounts payable 9,649,345 10,742,182
Customer deposits 11,435,732 7,583,571
Accrued expenses and other liabilities 7,023,171 6,588,489
Deferred income taxes 1,845,649 1,387,473
12 1/2% Senior Notes due January 15, 2003,
net of $1,223,003 discount in 1997 and
$1,308,064 discount in 1996 66,240,997 66,155,936
------------- -------------
Total Liabilities 108,836,676 107,799,152
Shareholders' Equity:
Class A common stock, $.10 par value
Authorized - 10,000,000 shares
Issued and outstanding -
1,874,949 in 1997 and in 1996 187,495 187,495
Class B common stock, $.10 par value
Authorized - 10,000,000 shares
Issued and outstanding -
2,750,575 in 1997 and in 1996 275,058 275,058
Additional paid-in capital 19,267,327 19,267,327
Retained earnings 24,515,342 48,016,858
------------- -------------
Total Shareholders' Equity 44,245,222 67,746,738
------------- -------------
Total Liabilities and Shareholders' Equity $ 153,081,898 $ 175,545,890
============= =============
See notes to consolidated financial statements
-2-
<PAGE> 4
ORIOLE HOMES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended Three Months Ended
June 30, June 30,
--------------------------- ---------------------------
1997 1996 1997 1996
----------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Revenues:
Sale of houses and condominiums $ 45,224,074 $40,405,407 $ 25,445,526 $23,704,964
Sale of land 5,500 1,622,356 -- 910,000
Other operating revenues 1,472,039 1,592,049 736,661 815,227
Interest, rentals and other income 2,007,147 1,890,054 1,103,642 1,041,481
Gain on sale of property and
land held for investment, net 501,533 667,124 501,420 646,764
------------ ----------- ------------ -----------
49,210,293 46,176,990 27,787,249 27,118,436
------------ ----------- ------------ -----------
Costs and Expenses:
Cost of houses and condominiums sold 40,217,979 34,190,319 22,419,822 19,885,233
Inventory valuation adjustment 17,050,000 -- 8,350,000 --
Fixed asset valuation adjustment 4,525,000 -- 4,525,000 --
Cost of land sold 3,246 1,683,070 -- 1,030,611
Costs relating to other operating
revenues 1,536,252 1,502,229 822,829 771,149
Selling, general and administrative
expenses 9,338,616 8,539,766 4,973,515 4,299,547
Interest costs incurred 5,061,222 5,675,898 2,473,807 2,810,239
Interest capitalized (deduct) (4,713,245) (5,329,435) (2,313,443) (2,649,495)
------------ ----------- ------------ -----------
73,019,070 46,261,847 41,251,530 26,147,284
------------ ----------- ------------ -----------
Income (loss) before provision for
(benefit from) income taxes (23,808,777) (84,857) (13,464,281) 971,152
Provision for (benefit from) income
taxes (307,261) (31,932) 342,319 365,625
------------ ----------- ------------ -----------
Net Income (Loss) $(23,501,516) $ (52,925) $(13,806,600) $ 605,527
============ =========== ============ ===========
Earnings per Class A and Class B
Common Share:
Net Income (Loss) $ (5.08) $ (.01) $ (2.98) $ .13
============ =========== ============ ===========
Average Number of Class A and Class B
Common Shares Outstanding 4,625,524 4,625,524 4,625,524 4,625,524
============ =========== ============ ===========
Dividends per Class A Common Share $ -- $ -- $ -- $ --
============ =========== ============ ===========
Dividends per Class B Common Share $ -- $ -- $ -- $ --
============ =========== ============ ===========
</TABLE>
See notes to consolidated financial statements
-3-
<PAGE> 5
ORIOLE HOMES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
INCREASE (DECREASE) IN CASH
(Unaudited)
Six Months Ended
June 30,
-------------------------------
1997 1996
---------------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss $(23,501,516) $ (52,925)
------------ ------------
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities
Depreciation 689,322 652,660
Amortization 274,555 263,910
Deferred income taxes 458,176 458,375
Gain on sale of property and equipment and
other assets (501,533) (667,124
(Increase) decrease in operating assets
Receivables 2,400,922 1,777,072
Inventories 487,040 (8,762,718)
Inventory valuation adjustment 17,050,000 --
Fixed asset valuation adjustment 4,525,000 --
Other assets (663,246) (403,214)
Increase (decrease) in operating liabilities
Accounts payable (1,092,837) 2,324,269
Customer deposits 3,852,161 3,882,929
Accrued expenses and other liabilities 434,682 (916,063)
------------ ------------
Total adjustments 27,914,242 (1,389,904)
------------ ------------
Net cash provided by (used in) operating
activities 4,412,726 (1,442,829)
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Return on investment in joint venture 1,868,000 12,000
Land held for investment (6,651) (9,000)
Capital expenditures (331,535) (1,130,447)
Proceeds from the sale of property
and equipment and other assets 1,060,182 4,062,275
------------ ------------
Net cash provided by investing activities 2,589,996 2,934,828
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from mortgage notes -- 12,800,000
Payment of mortgage notes (99,719) (15,103,845)
Borrowings under line of credit agreements 9,100,000 15,500,000
Repayments under line of credit agreements (11,700,000) (16,000,000)
Issuance costs -- (96,236)
------------ ------------
Net cash (used in) financing activities (2,699,719) (2,900,081)
------------ ------------
NET INCREASE (DECREASE) IN CASH 4,303,003 (1,408,082)
CASH AT BEGINNING OF PERIOD 2,409,376 3,275,615
------------ ------------
CASH AT END OF PERIOD $ 6,712,379 $ 1,867,533
============ ============
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the period for:
Interest (net of amount capitalized) $ 262,916 $ 265,923
Income taxes $ -- $ 529
See notes to consolidated financial statements
-4-
<PAGE> 6
FORM 10Q
ORIOLE HOMES CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The consolidated balance sheet as of June 30, 1997, the related
statements of operations and cash flows for the three months and six
months ended June 30, 1997 and 1996 have been prepared by the Company
without audit. In the opinion of the management of the Company, all
adjustments (consisting of normal recurring accruals) necessary for a
fair presentation of the unaudited interim periods have been reflected
herein.
Certain footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles
have been omitted. It is suggested that these consolidated financial
statements be read in conjunction with the financial statements and
notes thereto included in the Company's December 31, 1996 annual report
to shareholders.
Certain balances have been reclassified to conform to the current year
presentation.
2. The results of operations for the three months and six months ended
June 30, 1997 are not necessarily indicative of the results for the
entire year.
3. Affiliated Companies.
The Company does not have investments in affiliated companies.
4. Inventory Valuation Adjustment.
The Company recorded, in the first quarter 1997, an inventory valuation
adjustment of $8,700,000 or $1.88 per common share related to certain
land inventory. The adjustment pertains to land inventory for
approximately 1,000 unsold housing units located in five developments.
The Company recorded, in the second quarter of 1997, an inventory
valuation adjustment of $8,350,000 or $1.81 per common share related to
certain land inventory in the amount of $8,150,000 for approximately
1,200 unsold housing units located in five developments and the
contingent sale portion of a land sale in the amount of $200,000 to
take place later in 1997.
The fair value of those units was determined in accordance with SFAS
121 based on quoted market price in active markets, i.e., the lower of
the Company backlog of actual contract sales or current selling prices.
Deteriorating market conditions during the first and second quarter of
1997 caused the Company to lower selling prices in order to maintain
current sales levels and move current inventory resulting in the
inventory valuation adjustments.
5. Fixed Asset Valuation Adjustment
The Company recorded in the second quarter 1997 a fixed asset valuation
adjustment of $4,525,000 or $.98 per common share related to a rental
apartment project. During the second quarter, management decided to
dispose of this rental apartment project and reduced its carrying
amount to its fair value less cost to sell.
6. The inventory valuation adjustment and the fixed asset adjustment are
based in part on management estimates and assumptions that affect the
reported amounts of assets as well as the reported amounts of revenues
and expenses during the reporting period. Actual results could differ
from these estimates.
-5-
<PAGE> 7
ORIOLE HOMES CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
7. Backlog of Contracts for Sales of Houses and Condominiums
<TABLE>
<CAPTION>
June 30, 1997 December 31, 1996
----------------------- -----------------------
Units Amounts Units Amounts
--------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Single-Family Homes 222 $41,925,626 173 $32,115,231
Multi-Family 217 29,374,831 93 12,695,047
--------- ----------- --------- -----------
Total 439 $71,300,457 266 $44,810,278
========= =========== ========= ===========
</TABLE>
8. Following is a computation of earnings per share:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------------ -------------------------
6/30/97 6/30/96 6/30/97 6/30/96
------------ ---------- ------------ ----------
<S> <C> <C> <C> <C>
Net Income (Loss) $(13,806,600) $ 605,527 $(23,501,516) $ (52,925)
============ ========== ============ ==========
Weighted average number of
common shares outstanding 4,625,524 4,625,524 4,625,524 4,625,524
============ ========== ============ ==========
Earnings (loss) per share $ (2.98) $ .13 $ (5.08) $ (.01)
============ ========== ============ ==========
</TABLE>
9. Credit commitments
On January 13, 1993, the Company issued its 12 1/2% Senior Notes ("Notes"), due
January 15, 2003. The Notes have a face value of $70,000,000 and were issued at
a discount of $1,930,600. The Notes are senior unsecured obligations of the
Company subject to redemption at the Company's option on or after January 15,
1998, at 105% of the principal amount and thereafter at prices declining
annually to 100% of the principal amount on or after January 15, 2001.
The indenture under which the Notes were issued requires sinking fund payments
of $17,500,000 on January 15, 2001 and January 15, 2002.
The indenture contains certain covenants that, among other things, limit the
ability of the Company to incur additional indebtedness, pay dividends or make
certain other distributions, repurchases or issuances of capital stock or
subordinated indebtedness.
On July 13, 1993, the Company entered into a secured revolving loan agreement
with a bank which provides up to $10,000,000 in short-term financing at an
interest rate of prime plus 1 1/2%. This agreement was amended August 23, 1995
to increase the line of credit to $15,000,000 and January 12, 1996 to increase
the line of credit to $20,000,000. On May 9, 1997, the agreement was amended to
reduce the line of credit to $10,000,000 and to reduce the consolidated tangible
net worth requirement to $58,000,000. By letter agreement dated August 22, 1997,
the bank agreed to extend the expiration date to October 1, 1997, reduce the
line of credit to $5,000,000 and reduce the consolidated tangible net worth
requirement to $42,000,000. As of August 22, 1997, the outstanding loan balance
was $4,600,000.
-6-
<PAGE> 8
Grant Thornton LLP
Certified Public Accountants
777 Brickell Avenue
Suite 1200
Miami, FL 33131-2867
Board of Directors
Oriole Homes Corp.
We have reviewed the accompanying consolidated balance sheet of Oriole Homes
Corp. and Subsidiaries as of June 30, 1997, and the related consolidated
statements of operations and cash flows for the three-month and six-month
periods then ended. These financial statements are the responsibility of the
company's management.
We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical review procedures to
financial data, and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit conducted in
accordance with generally accepted auditing standards, the objective of which is
the expression of an opinion regarding the financial statements taken as a
whole. Accordingly, we do not express such opinion.
Based on our review, we are not aware of any material modifications that should
be made to the accompanying consolidated financial statements for them to be in
conformity with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet as of December 31, 1996, and the
related consolidated statements of operations, shareholders' equity, and cash
flows for the year then ended (not presented herein) and in our report dated
March 7, 1997, we expressed an unqualified opinion on those consolidated
financial statements. In our opinion, the information set forth in the
accompanying consolidated balance sheet as of December 31, 1996, is fairly
stated, in all material respects, in relation to the consolidated balance sheet
from which it has been derived.
Grant Thornton LLP
Miami, Florida
August 21, 1997
-7-
<PAGE> 9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL POSITION
RESULTS OF OPERATIONS.
THREE MONTHS ENDED JUNE 30, 1997 COMPARED TO THREE MONTHS ENDED JUNE 30, 1996
The Company's revenues from home sales increased 7.3% to $25.4 million during
the second quarter of 1997 as compared to the same period of 1996. The Company
delivered 162 homes in the 1997 second quarter compared to 125 in the same
period of 1996. The average selling price of homes delivered decreased 17.2%
(from $189,640 to $157,071) caused by a change in the mix of units sold toward
less costly models and reductions in the selling prices of certain units to sell
slow moving inventory. Deteriorating market conditions affected sales in some
projects and contributed to this reduction in selling price. The Company entered
into 193 new contracts with an aggregate dollar value of $31.5 million in the
second quarter of 1997 compared to 184 new contracts with an aggregate dollar
value of $30.5 million in the 1996 period. Other operating revenues amounted to
$.7 million in the period as compared to $.8 million in the same period of 1996.
Interest, rentals and other income and gain on sale of property decreased to
$1.6 million from $1.7 million in the same period of 1996.
As a percentage of home sales, cost of homes sold increased to 88.1% ($22.4
million) in the second quarter of 1997 from 83.9% ($19.9 million) in the same
period of 1996. This increase is mainly attributable to additional interest
capitalized, reduction in selling prices, and features added to houses due to
competitive market conditions.
Selling, general and administrative expenses increased to $5.0 million in the
second quarter of 1997 from $4.3 million in 1996 mainly due to higher
advertising expenses and sales commissions related to a larger volume of
closings. As a percentage of total revenues, the 1997 period reflected 17.9% as
compared to 15.9% in the same period of 1996.
The second quarter of 1997 reflects a net loss of $13.8 million or $2.98 per
share as compared to a net profit of $.6 million or $.13 per share in the
comparable period of 1996. The loss for the 1997 quarter included a noncash,
pretax writedown of $8.4 million pertaining to the carrying cost of certain land
inventories and a revaluation of $4.5 million on the cost of a 480 unit rental
apartment project. During the second quarter, management decided to dispose of
the rental apartment project which reduced its carrying amount to its fair value
less cost to sell. Also included in the 1997 second quarter results is $.3
million profit net of taxes for the sale of leases on certain recreational
facilities.
SIX MONTHS ENDED JUNE 30, 1997, COMPARED TO SIX MONTHS ENDED JUNE 30, 1996
The Company's revenues from home sales increased 11.9% to $45.2 million in the
six month period of 1997 as compared to $40.4 million in the same period of
1996. The Company delivered 282 units in the first six months of 1997 as
compared to 223 units in 1996. The average selling price of homes delivered
decreased 11.5% to $160,369 from $181,190, caused by a change in the mix of
units sold toward less costly models and reductions in the selling prices of
certain units to sell slow moving inventory. Deteriorating market conditions
affected sales in some projects and contributed to this reduction in selling
price. In 1997, 455 new contracts were signed with a value of $71.7 million as
compared to 404 new contracts with a value of $67.1 million in 1996. Other
operating revenues amounted to $1.5 million in the six months of 1997 as
compared to $1.6 million in the same period of 1996.
-8-
<PAGE> 10
Interest, rentals and other income and gain on sale of property amounted to $2.5
million in 1997, compared to $2.6 million in 1996. Cost of sales increased to
$40.2 million in 1997 from $34.2 million in 1996, and as a percentage of home
sales, cost of home sales increased to 88.9% in 1997 from 84.6% in 1996. This
increase is mainly attributable to additional interest capitalized, reduction in
selling prices, and features added to houses due to competitive market
conditions.
Selling, general and administrative expenses increased to $9.3 million in 1997
from $8.5 million in 1996, but as a percentage of total revenues, increased to
19.0% in 1997 from 18.5% in 1996. The increase of $.8 million from 1996 to 1997
periods is mainly due to higher advertising expenses and sales commissions
related to a larger volume of closings.
Net loss increased to $23.5 million in the first six months of 1997, or $5.08
per share compared to a net loss of $.05 million, or $.01 per share in 1996. The
increase in the net loss for the first six months of 1997 was mainly due to
noncash pretax writedowns of $8.7 million in the 1997 first quarter and $8.4 in
the second quarter of 1997 pertaining to the carrying cost of certain land
inventories and a revaluation of $4.5 million on a 480 unit rental apartment
project. During the second quarter, management decided to dispose of the rental
apartment project which required an adjustment to reduce its carrying amount to
its fair value less cost to sell. Also included is a profit net of taxes of $.3
million for the sale of leases on certain recreational facilities.
The dollar amount of the Company's backlog which reflects new sales contracts
that have yet to close increased 14.9% to $71,300,457 (representing 439 units)
as of June 30, 1997 from $62,075,421 (representing 374 units) as of June 30,
1996. The average per unit value of the Company backlog now stands at $162,416,
as compared to $165,977 at the end of the 1996 second quarter.
FINANCIAL CONDITION AND LIQUIDITY
The Company's financing needs depend primarily upon sales volume, asset
turnover, land acquisition and inventory balances. The Company has historically
financed its working capital needs from funds generated through operations,
borrowings and the issuance of common stock.
As of June 30, 1997, the Company has outstanding borrowings of approximately
$78.9 million, including $66.2 million in Senior Notes due 2003. It had
available cash and short term investments of approximately $6.7 million and
available funds of approximately $9.9 million pursuant to its $10 million credit
facility. The Company believes that the funds generated from operations and its
borrowing availability under credit facilities will be sufficient to fund the
Company's foreseeable working capital requirements, with the possible exception
of land acquisitions.
The Company has negotiated an extension of its line of credit to October 1, 1997
and reduced the line from $10,000,000 to $5,000,000 with a commensurate
reduction in the equity requirement from $58,000,000 to $42,000,000.
As of August 22, 1997, $4.6 million of the line has been drawn.
As of June 30, 1997, the Company had invested $4,663,000 in a Joint Venture with
a South Florida building company. The Joint Venture Agreement provides that the
Company is to receive a 15% return plus $2,800 as each developed lot or dwelling
unit is sold, and 5% of the gross sales price on land sales. The Company's
investment and its return are guaranteed by the other Joint Venturer and by the
principal shareholder of the Joint Venturer.
PART II - OTHER INFORMATION
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
The June 30, 1997 unaudited Financial Statements included in this form 10-Q have
been reviewed by Grant Thornton LLP in accordance with established professional
standards and procedures for such a review.
(a) There were no reports on Form 8-K for the three months ended June 30,
1997.
-9-
<PAGE> 11
SIGNATURES
----------
Pursuant to the requirements of Section 13, 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.
ORIOLE HOMES CORP.
------------------
(Registrant)
Date: August 25, 1997 /s/ R.D. LEVY
- --------------------------- ------------------------------------
R.D. Levy,
Chairman of the Board,
Chief Executive Officer,
Director
Date: August 25, 1997 /s/ A. NUNEZ
- --------------------------- ------------------------------------
A. Nunez, Senior Vice President
Treasurer, Chief Financial Officer,
Chief Accounting Officer, Director
-10-
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 6,712,379
<SECURITIES> 0
<RECEIVABLES> 275,197
<ALLOWANCES> 0
<INVENTORY> 114,362,796
<CURRENT-ASSETS> 0
<PP&E> 27,276,032
<DEPRECIATION> (9,988,467)
<TOTAL-ASSETS> 153,081,898
<CURRENT-LIABILITIES> 0
<BONDS> 78,882,779
0
0
<COMMON> 462,553
<OTHER-SE> 43,782,669
<TOTAL-LIABILITY-AND-EQUITY> 153,081,898
<SALES> 45,229,574
<TOTAL-REVENUES> 49,210,293
<CGS> 40,221,225
<TOTAL-COSTS> 63,332,477
<OTHER-EXPENSES> 9,338,616
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 347,977
<INCOME-PRETAX> (23,808,777)
<INCOME-TAX> (307,261)
<INCOME-CONTINUING> (23,501,516)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (23,501,516)
<EPS-PRIMARY> (5.08)
<EPS-DILUTED> (5.08)
<FN>
Company reports on a non-classified balance sheet.
</FN>
</TABLE>
