<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, 1999 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 August 6, 1999
- ------------------------------------- ---------------------------------
Common Stock, Class A, par value $.10 1,864,149
Common Stock, Class B, par value $.10 2,761,375
<PAGE> 2
PART 1 - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
ORIOLE HOMES CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
June 30, December 31,
1999 1998
(Unaudited) (Audited)
------------ ------------
<S> <C> <C>
Cash and cash equivalents $ 20,712,925 $ 10,557,772
------------ ------------
Receivables
Mortgage notes 263,144 953,284
Inventories
Land 52,933,517 59,059,535
Homes completed or under construction 35,335,831 42,763,798
Model houses and condominiums 4,339,657 4,360,514
------------ ------------
92,609,005 106,183,847
Less estimated costs of completion
included in inventories 9,910,937 9,080,857
------------ ------------
82,698,068 97,102,990
------------ ------------
Property and equipment, at cost
Land 156,506 517,554
Buildings 3,285,188 3,505,343
Furniture, fixtures and equipment 3,270,288 3,445,563
------------ ------------
6,711,982 7,468,460
Less accumulated depreciation 3,879,847 4,070,613
------------ ------------
2,832,135 3,397,847
------------ ------------
Property and equipment held for sale, at cost -- 11,956,165
Investments in and advances to joint ventures 3,262,133 3,288,596
Land held for investment, at cost -- 2,127,009
Other
Prepaid expenses 982,694 1,719,517
Unamortized debt issuance costs 882,850 1,111,696
Other assets 3,220,529 3,011,589
------------ ------------
5,086,073 5,842,802
------------ ------------
Total assets $114,854,478 $135,226,465
============ ============
</TABLE>
See notes to the consolidated financial statements
-1-
<PAGE> 3
ORIOLE HOMES CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS' EQUITY
<TABLE>
<CAPTION>
June 30, December 31,
1999 1998
(Unaudited) (Audited)
------------ ------------
<S> <C> <C>
Liabilities
Line of credit $ 10,000 $ 10,000
Mortgage notes payable 3,061,600 15,970,385
Accounts payable and accrued liabilities 9,944,726 11,664,858
Customer deposits 4,085,168 5,095,182
Senior notes 49,585,814 55,507,312
------------ ------------
Total liabilities 66,687,308 88,247,737
Shareholders' equity
Class A common stock, $.10 par value
Authorized - 10,000,000 shares,
issued and outstanding -
1,864,149 in 1999 and in 1998 186,415 186,415
Class B common stock, $.10 par value
Authorized - 10,000,000 shares,
issued and outstanding -
2,761,375 in 1999 and in 1998 276,138 276,138
Additional paid-in capital 19,267,327 19,267,327
Retained earnings 28,437,290 27,248,848
------------ ------------
Total shareholders' equity 48,167,170 46,978,728
------------ ------------
Total liabilities and shareholders' equity $114,854,478 $135,226,465
============ ============
</TABLE>
See notes to the 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,
-------------------------------- --------------------------------
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Revenues
Sales of homes $ 44,198,085 $ 38,497,335 $ 19,581,677 $ 13,165,057
Other operating revenues 1,896,685 1,995,904 962,629 1,024,981
Interest, rentals and other income 1,591,405 1,654,351 547,748 722,832
Gain on sale of property and
equipment held for sale, net 3,745,618 -- 3,745,618 --
Gain (loss) on sale of land held for
investment and other assets, net 1,828,753 790,581 (38,638) 599,668
------------ ------------ ------------ ------------
53,260,546 42,938,171 24,799,034 15,512,538
------------ ------------ ------------ ------------
Costs and Expenses
Cost of homes sold 39,991,093 33,246,929 17,555,700 11,232,729
Inventory valuation adjustment 2,480,695 -- 2,480,695 --
Costs relating to other
operating revenues 1,657,625 1,622,507 854,610 767,545
Selling, general and
administrative expenses 7,701,100 7,817,984 3,704,453 3,601,873
Interest costs incurred 3,778,822 4,562,278 1,729,796 2,244,133
Interest capitalized (deduct) (3,537,231) (3,829,190) (1,635,204) (1,825,078)
------------ ------------ ------------ ------------
52,072,104 43,420,508 24,690,050 16,021,202
------------ ------------ ------------ ------------
Income (loss) before provision for
(benefit from) income taxes 1,188,442 (482,337) 108,984 (508,664)
Provision for (benefit from) income taxes -- -- -- --
------------ ------------ ------------ ------------
Net income (loss) $ 1,188,442 $ (482,337) $ 108,984 $ (508,664)
============ ============ ============ ============
Net income (loss) per Class A and B
common share available for common
stockholders - Basic $ .26 $ (.10) $ .03 $ (.11)
============ ============ ============ ============
Weighted average number of common
stock outstanding - Basic 4,625,524 4,625,524 4,625,524 4,625,524
============ ============ ============ ============
Net income (loss) per Class A and B
common share available for common
stockholders - Diluted $ .26 $ (.10) $ .03 $ (.11)
============ ============ ============ ============
Weighted average number of common
stock outstanding - Diluted 4,625,524 4,625,524 4,625,524 4,625,524
============ ============ ============ ============
</TABLE>
See notes to consolidated financial statements
-3-
<PAGE> 5
ORIOLE HOMES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
------------ ------------
1999 1998
------------ ------------
<S> <C> <C>
Cash flows from operating activities
Net income (loss) $ 1,188,442 $ (482,337)
Adjustments to reconcile net income (loss) to net
cash provided by operating activities
Depreciation 624,546 615,461
Amortization 386,348 403,927
Gain on sale of property and land held for investment, net (5,574,371) (790,581)
(Increase) decrease in operating assets
Receivables 690,140 766,656
Inventories 14,546,466 5,904,875
Other assets 527,883 (211,587)
Increase (decrease) in operating liabilities
Accounts payable and accrued liabilities (1,720,132) (2,018,751)
Customer deposits (1,010,014) 904,401
------------ ------------
Total adjustments 8,470,866 5,574,401
------------ ------------
Net cash provided by operating activities 9,659,308 5,092,064
------------ ------------
Cash flows from investing activities
Return on investment in joint ventures 26,463 614,687
Capital expenditures (344,389) (404,680)
Proceeds from the sale of property and equipment 19,801,556 1,210,779
------------ ------------
Net cash provided by investing activities 19,483,630 1,420,786
------------ ------------
Cash flows (used in) financing activities
Payment of mortgage notes (12,908,785) (107,087)
Repurchase of senior notes (6,079,000) (5,050,000)
------------ ------------
Net cash (used in) financing activities (18,987,785) (5,157,087)
------------ ------------
Net increase in cash and cash equivalents 10,155,153 1,355,763
Cash and cash equivalents at beginning of period 10,557,772 19,830,523
------------ ------------
Cash and cash equivalents at end of period $ 20,712,925 $ 21,186,286
============ ============
Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest (net of amount capitalized) $ 523,377 $ 869,240
Income taxes $ -- $ 2,627
</TABLE>
See notes to consolidated financial statements
-4-
<PAGE> 6
ORIOLE HOMES CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The consolidated balance sheet as of June 30, 1999 and the related
statements of operations and cash flows for the three months and six
months ended June 30, 1999 and 1998 of Oriole Homes Corp. (together with
its consolidated subsidiaries, the "Company") have been prepared by the
Company without audit. In the opinion of 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, 1998 annual report on Form
10K.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the financial statements
and accompanying notes. Actual results could differ from those estimates.
Certain reclassifications have been made to conform to the current year
presentation.
2. The results of operations for the three months and the six months ended
June 30, 1999 are not necessarily indicative of the results for the
entire year.
3. Inventory valuation adjustment
Statement of Financial Accounting Standards ("SFAS") No. 121 requires
that long-lived assets held and used by the Company be reviewed for
impairment whenever events or changes indicate that the net book value of
the asset may not be recoverable. An impairment loss is recognized if the
sum of the undiscounted expected future cash flows from the use of the
assets is less than the net book value of the assets. The Company
periodically reviews the carrying value of its assets and, if such
reviews indicate the potential for lack of recovery of the net book
value, adjusts the assets accordingly.
In this regard, the Company recorded in the second quarter of 1999 a
non-cash inventory valuation adjustment totaling $2,480,695 or $.54 per
common share, reducing certain land inventory to its estimated fair value
less cost to sell. The inventory adjustment pertained to approximately 84
unsold housing units located in two developments.
4. Backlog of contracts for sales of homes:
<TABLE>
<CAPTION>
June 30, 1999 December 31, 1998
-------------------------- --------------------------
Units Amounts Units Amounts
-------- ----------- -------- -----------
<S> <C> <C> <C> <C>
Single-family 110 $18,604,718 129 $22,256,303
Multi-family 68 9,712,518 83 11,297,006
-------- ----------- -------- -----------
Total 178 $28,317,236 212 $33,553,309
======== =========== ======== ===========
</TABLE>
-5-
<PAGE> 7
ORIOLE HOMES CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
5. Senior notes
On January 13, 1993, the Company issued 12 1/2% senior notes ("Senior
Notes"), due January 15, 2003. The Senior Notes have a face value of
$70,000,000 and were issued at a discount of $1,930,600. The Senior 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.
Under the terms of the indenture ("Indenture"), the Company must make
Senior Notes sinking fund payments of $17,500,000 by January 15, 2001 and
January 15, 2002. The Indenture also contains provisions restricting the
amount and type of indebtedness the Company may incur, the purchase by
the Company of its stock and the payment of cash dividends. At June 30,
1999, the payment of cash dividends is prohibited and will be restricted
until the Company posts cumulative net income in excess of $62,100,000.
During the six months ended June 30, 1999, the Company repurchased
$6,079,000 of Senior Notes to be used as part of the sinking fund and has
accumulated $19,787,000 toward the $17,500,000 payments due January 15,
2001 and 2002.
6. Line of credit
The Company may borrow up to $10,000,000 at an interest rate of prime
plus 1.5% under a revolving loan agreement (line of credit) with a bank,
secured by a mortgage on certain real property. At June 30, 1999,
$9,990,000 was available under this line of credit. The loan agreement
expires July 1, 2000.
The line of credit can be used to finance ongoing development and
construction of residential real estate and short-term capital needs and
only requires monthly interest payments. The loan agreement contains
typical restrictions and covenants, the most restrictive of which are:
a. the Company shall maintain, at all times through the life
of the loan, a consolidated tangible net worth of not less
than $42,000,000, and;
b. the Company's ability to incur additional debt is
restricted.
7. Income taxes
At June 30, 1999, the Company has no deferred tax benefit related to its
net operating losses as the Company's ability to realize these benefits
is not "more likely than not" as defined by SFAS Statement No. 109
"Accounting for Income Taxes".
-6-
<PAGE> 8
ORIOLE HOMES CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
8. Gain on sale of property and equipment held for sale
On June 30, 1999, the Company sold a 480 unit rental apartment complex
for a gain of $3.75 million. A portion of the gross proceeds of $19.2
million was used to reduce the balance of related long-term debt by $12.2
million.
9. Segment information
The Company has the following two reportable segments: home building and
rental operations. The homebuilding segment develops and sells
residential properties and planned communities. The rental operations
segment consists of 529 units in two separate properties. Selected
segment information is set forth below (in thousands):
<TABLE>
<CAPTION>
Six Months Ending Three Months Ending
June 30, June 30,
---------------------- ----------------------
1999 1998 1999 1998
$ $ $ $
------- ------- ------- -------
<S> <C> <C> <C> <C>
Revenues
Home Building 47,288 40,709 19,941 14,398
Rental Operations 1,896 1,996 962 1,025
Other 4,077 233 3,896 89
------- ------- ------- -------
Total 53,261 42,938 24,799 15,512
======= ======= ======= =======
Segment net income (loss)
Home Building (2,961) (926) (3,805) (778)
Rental Operations 238 373 107 257
Other 3,911 71 3,807 13
------- ------- ------- -------
Total 1,188 (482) 109 (508)
======= ======= ======= =======
</TABLE>
10. Commitments and contingencies
The Company is involved, from time to time, in litigation arising in the
ordinary course of business, none of which is expected to have a material
adverse effect on the Company's consolidated financial position or
results of operations.
The Company is also subject to the normal obligations associated with
entering into contracts for the purchase, development and sale of real
estate in the routine conduct of its business.
-7-
<PAGE> 9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 1999 COMPARED TO THREE MONTHS ENDED JUNE 30, 1998
The Company's revenues from home sales increased $6.4 million (48.7%)
to $19.6 million during the second quarter of 1999 as compared to the comparable
quarter of 1998 primarily as a result of an increase in the number of homes
delivered. Oriole delivered 125 homes in the 1999 second quarter compared to 82
in the same period in 1998. The average selling price of homes delivered
decreased from $160.5 to $156.7. The number of contracts signed at 113 and the
aggregate dollar value of those contracts at $18.0 million decreased in the 1999
second quarter from 144 and $22.3 million, respectively, from the same period in
1998.
During the quarter ended June 30, 1999, the Company sold a 480 unit
rental apartment complex for a gain of $3.75 million. A portion of the gross
proceeds of $19.2 million was used to reduce the balance of related long-term
debt by $12.2 million.
Other non-homebuilding revenues decreased $0.9 million during the
second quarter of 1999 as compared to the same period in 1998 primarily due to
the sale of certain properties which had been held for investment.
Cost of home sales increased to $17.6 million (56.3%) in the second
quarter of 1999 from $11.2 million in the second quarter of 1998 as a result of
an increase in the number of home delivered. As a percentage of home sales, cost
of sales increased to 89.7% from 85.3% in the second quarter of 1999 primarily
due to the decrease in average selling price previously mentioned.
Selling, general and administrative expenses decreased as a percentage
of revenues to 14.9% from 23.2% for the same period in 1998 due to the increase
in revenues related to home deliveries and the sales of property and equipment.
The Company generated net income for the quarter ended June 30, 1999 of
$0.1 million compared to a net loss of $0.5 million during the same period in
1998. Included in the 1999 period is a non-cash pre-tax charge of $2.5 million
representing an inventory valuation adjustment affecting the value of land
inventory for approximately 84 unsold housing units located in two developments.
The Company determined that this inventory valuation adjustment was appropriate
because it would have to continue selling homes in these developments at prices
lower than originally anticipated in order to meet market conditions while
accumulated capitalized interest adversely affected the cost of goods sold.
Earnings before interest, taxes, depreciation and amortization,
inclusive of the 1999 non-cash inventory evaluation adjustments, (EBITDA)
increased $3.5 million to $4.8 million in the second quarter of 1999 as compared
to the same period in 1998 primarily due to the increase in the gain on sale of
property and equipment during this period.
SIX MONTHS ENDED JUNE 30, 1999 COMPARED TO SIX MONTHS ENDED JUNE 30, 1998
The Company's revenues from home sales increased $5.7 million (14.8%)
to $44.2 million during the six month period of 1999 as compared to 1998 as a
result of the number of homes delivered. Oriole delivered 289 homes in the first
six months of 1999 compared to 233 in the same period in 1998. The average
selling price of homes delivered decreased from $165.2 to $152.9. The number of
contracts signed at 255 and the aggregate dollar value of those contracts at
$39.0 million decreased in the 1999 first six months from 308 and $48.1 million,
respectively, from the same period in 1998.
Non-homebuilding revenues increased to $9.1 million in the six month
period of 1999 from $4.4 million primarily due to the sale of certain properties
which had been held for investment.
Cost of home sales increased to $40.0 million (20.3%) in 1999 from
$33.2 million in 1998 as a result in the increase in the number of homes
delivered. As a percentage of home sales, cost of sales increased to 90.5% from
86.4% in the first six months of 1998. This increase was primarily the result of
the decrease in the average selling price previously mentioned.
-8-
<PAGE> 10
Selling, general and administrative expenses remained at approximately
the same level in the first six months of 1999 when compared to the same period
in 1998. These expenses decreased as a percentage of revenues to 14.5 % from
18.2% for the same period in 1998 due to the increase in revenues related to
home deliveries and the sales of property and equipment.
The Company's net income for the first six months of 1999 was $1.2
million, or $0.26 per share, as compared to a net loss of $0.5 million, or $0.10
per share in 1998. Net income was decreased by a non-cash pre-tax charge of $2.5
million, or $0.54 per share to write-down the value of certain inventory to its
fair market value less cost to sell and net income was increased by $4.8 million
due to the sales of property and equipment.
EBITDA, inclusive of the 1999 non-cash inventory valuation adjustments,
increased $4.8 million to $8.7 million in the first six months of 1999 from $3.8
million in 1998 primarily due to the increase in the gain on sales of properties
and equipment during this period.
LIQUIDITY AND CAPITAL RESOURCES
The Company's cash requirements vary from period to period depending
upon changes in inventory, land acquisition and development requirements,
construction in progress and, to a lesser extent, the Company's current net
income. The Company obtains funds for its cash requirements from operations, the
sale of investment property and borrowings. In connection with land acquisitions
and development, the Company may borrow money secured by land and improvements.
During the first six months of 1999, the Company used a portion of
available cash provided by both the sales of investment properties and
operations to purchase $6.1 million of Senior Notes and reduce other long-term
debt by $12.2 million. At June 30, 1999, the Company had approximately $20.7
million in cash and cash equivalents and the availability of substantially all
of it's $10.0 million revolving line of credit. The Company believes that these
resources are sufficient to provide for its cash requirements through June 30,
2000.
FORWARD LOOKING STATEMENTS
Certain statements made in this document, including certain statements
made in Management's Discussion and Analysis, contain "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,
regarding the expectations of management with respect to revenues,
profitability, marketplace conditions, adequacy of funds from operations and
regulatory conditions applicable to the Company, among other things.
Management cautions the these statements are qualified by their terms
and/or important factors, many of which are outside the control of the Company,
that could cause actual results and events to differ materially from the
statements made herein, including, but not limited to the following: changes in
consumer preferences, increases in interest rates, a reduction in labor
availability, increases in the cost of labor and materials, changes in the
regulatory environment particularly as relates to zoning and land use,
competitive pricing pressures and the general state of the economy, both
nationally and in the Company's market.
YEAR 2000
The Company has assessed, and formulated a plan to resolve, its
information technology ("IT") and non-IT system year 2000 issues. The Company is
in the process of replacing its software systems and applications in their
entirety. The Company had been advised that both the new replacement systems and
applications, as well as the upgraded systems and applications will cause its IT
system to be fully year 2000 compliant. The Company expects to test its systems
and applications for year 2000 compliance in conjunction with its cost of its
new or upgraded software systems and applications during July, 1999. The Company
does not consider any other IT or any non-IT systems of the Company to be
critical to Company operations and if non-capable for year 2000, the only effect
would be inconvenience.
-9-
<PAGE> 11
There will be no incremental additional cost for acquiring a software and
applications system that is year 2000 compliant and the Company does not
anticipate that testing or any other measure relating to implementing its plan
for year 2000 compliance will result in costs that would have a material impact
on future earnings.
The Company has and is consulting with its subcontractors and suppliers
regarding their year 2000 readiness and has been advised that they will be year
2000 compliant in all material respects. In any event, the Company believes that
it would not be difficult to find alternative subcontractors and suppliers in
the event that one of its existing subcontractors and suppliers are unable to
satisfactorily perform as the result of failure to be year 2000 compliant.
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
Exhibits and Reports on Form 8K
(a) Exhibits
Exhibit 27-Financial Data Schedule
(b) There were no reports on Form 8-K filed for the three months ended
June 30, 1999.
-10-
<PAGE> 12
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 6, 1999 /s/ R.D. Levy
--------------------------------------
R.D. Levy,
Chairman of the Board,
Chief Executive Officer,
Director
Date: August 6, 1999 /s/ J. Pivinski
--------------------------------------
J. Pivinski, Vice President - Finance,
Treasurer, Chief Financial Officer
-11-
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 20,712,925
<SECURITIES> 0
<RECEIVABLES> 263,144
<ALLOWANCES> 0
<INVENTORY> 82,698,068
<CURRENT-ASSETS> 0
<PP&E> 6,711,982
<DEPRECIATION> 3,879,847
<TOTAL-ASSETS> 114,854,478
<CURRENT-LIABILITIES> 0
<BONDS> 52,647,414
0
0
<COMMON> 462,553
<OTHER-SE> 47,704,617
<TOTAL-LIABILITY-AND-EQUITY> 114,854,478
<SALES> 44,198,085
<TOTAL-REVENUES> 53,260,546
<CGS> 39,991,093
<TOTAL-COSTS> 44,129,413
<OTHER-EXPENSES> 7,701,100
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 241,651
<INCOME-PRETAX> 1,188,442
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,188,442
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,188,442
<EPS-BASIC> .26
<EPS-DILUTED> .26
</TABLE>
