<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended AUGUST 31, 1998 Commission File Number 0-13394
VIDEO DISPLAY CORPORATION
(Exact name of registrant as specified on its charter)
GEORGIA 58-1217564
(State or other jurisdiction of (I.R.S.Employer
incorporation or organization) Identification No.)
1868 TUCKER INDUSTRIAL DRIVE, TUCKER, GEORGIA 30084
(Address of principal executive offices)
Registrant's telephone number including area code: 770-938-2080
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by section 13 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 issuer's classes of
common stock, as of the latest practical date:
Class Outstanding at August 31, 1998
- ------------------------- -------------------------------
Common Stock, No Par Value 3,976,312
<PAGE>
VIDEO DISPLAY CORPORATION
INDEX
<TABLE>
<CAPTION>
Page
<S> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (unaudited)
Consolidated balance sheets - August 31, 1998 and
February 28, 1998 3-4
Consolidated statements of operations -
Fiscal quarter and six months ended August 31, 1998 and 1997 5
Consolidated statements of shareholders' equity -
Twelve months ended February 28, 1998 and the six months
ended August 31, 1998 6
Consolidated statements of cash flows - Six months
ended August 31, 1998 and August 31, 1997 7-8
Notes to consolidated financial statements -
August 31, 1998 9-11
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 12-13
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 14
Item 2. Changes in Securities 14
Item 3. Defaults upon its Senior Securities 14
Item 4. Submission of Matters to a Vote of Security Holders 14
Item 5. Other Information 14
Item 6. Exhibits and reports on Form 8-K 14
SIGNATURES
</TABLE>
2
<PAGE>
VIDEO DISPLAY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
AUGUST 31, February 28,
1998 1998
UNAUDITED (NOTE A)
------------ -------------
<S> <C> <C>
Assets
Current assets:
Cash and cash equivalents (including restricted cash
of $34,000) $ 2,198,000 $ 2,598,000
Notes and accounts receivable, less allowance for
possible losses of $421,000 and $370,000 6,478,000 6,776,000
Inventories 23,256,000 21,491,000
Prepaid expenses 1,209,000 1,710,000
------------ ------------
Total current assets 33,141,000 32,575,000
Property, plant and equipment:
Land 470,000 435,000
Buildings 3,643,000 3,449,000
Machinery and equipment 15,255,000 14,605,000
------------ ------------
19,368,000 18,489,000
Accumulated depreciation and amortization (14,499,000) (13,776,000)
------------ ------------
4,869,000 4,713,000
Excess of cost over net assets acquired, net of
accumulated amortization of $1,351,000 and
$1,207,000 2,108,000 1,832,000
Other assets 1,660,000 1,462,000
------------ ------------
Total assets $ 41,778,000 $ 40,582,000
============ ============
</TABLE>
The accompanying notes are an integral part of these statements.
3
<PAGE>
VIDEO DISPLAY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - CONTINUED
LIABILITIES AND SHAREHOLDERS' EQUITY
<TABLE>
<CAPTION>
AUGUST 31, February 28,
1998 1998
UNAUDITED (NOTE A)
------------ -------------
<S> <C> <C>
Liabilities and Shareholders' Equity
Current liabilities:
Revolving lines of credit (Note E) $ 3,499,000 $ 5,279,000
Notes payable to officers and shareholders (Note E) 1,394,000 2,900,000
Accounts payable 3,204,000 3,108,000
Accrued liabilities 2,479,000 3,872,000
Current maturities of long-term debt (Note D) 975,000 975,000
----------- -----------
Total current liabilities 11,551,000 16,134,000
Long-term debt (Note D) 4,798,000 1,016,000
Convertible subordinated debentures 1,775,000 1,775,000
Deferred income taxes 256,000 311,000
Minority interests 193,000 200,000
Commitments and contingencies --- ---
Shareholders' equity
Preferred stock, no par value - shares authorized 2,000,000;
none issued and outstanding --- ---
Common stock, no par value - shares authorized 10,000,000;
issued and outstanding shares 3,976,000 3,932,000 3,465,000
Additional paid-in capital 92,000 92,000
Retained earnings 20,722,000 19,094,000
Net unrealized loss on marketable equity securities (243,000) (206,000)
Currency translation adjustments (1,298,000) (1,299,000)
----------- -----------
Total shareholders' equity 23,205,000 21,146,000
----------- -----------
Total liabilities and shareholders' equity $41,778,000 $40,582,000
=========== ===========
</TABLE>
The accompanying notes are an integral part of these statements.
4
<PAGE>
VIDEO DISPLAY CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
Quarter Ended August 31, Six Months Ended August 31,
1998 1997 1998 1997
----------- ----------- ----------- --------------
<S> <C> <C> <C> <C>
Net sales $13,762,000 $14,212,000 $28,801,000 $28,534,000
Cost of goods sold 8,265,000 8,775,000 17,746,000 18,120,000
----------- ---------- ---------- -----------
Gross profit 5,497,000 5,437,000 11,055,000 10,414,000
Operating expenses:
Selling and delivery 1,121,000 1,030,000 2,262,000 2,228,000
General and administrative 2,853,000 2,672,000 5,584,000 5,386,000
----------- ---------- ---------- -----------
3,974,000 3,702,000 7,846,000 7,614,000
Operating profit 1,523,000 1,735,000 3,209,000 2,800,000
Other income (expense)
Interest expense (214,000) (317,000) (444,000) (668,000)
Other, net (106,000) 20,000 (92,000) 16,000
----------- ---------- ---------- -----------
(320,000) (297,000) (536,000) (652,000)
Income before minority interest 1,203,000 1,438,000 2,673,000 2,148,000
Minority interest expense (income) (7,000) --- (8,000) 4,000
----------- ---------- ---------- -----------
Income before income taxes 1,210,000 1,438,000 2,681,000 2,144,000
Income taxes 479,000 552,000 1,054,000 746,000
----------- ---------- ---------- -----------
Net Income $ 731,000 $ 886,000 $1,627,000 $ 1,398,000
=========== ========== ========== ===========
Basic earnings per share of common
stock $ 0.19 $ 0.22 $ 0.41 $ 0.35
=========== ========== ========== ===========
Fully diluted earnings per share of
common stock $ 0.17 $ 0.21 $ 0.37 $ 0.33
=========== ========== ========== ===========
Basic weighted average shares
outstanding 3,942,000 3,997,000 3,942,000 3,997,000
=========== ========== ========== ===========
Fully diluted weighted average shares
outstanding 4,479,000 4,438,000 4,479,000 4,438,000
=========== ========== ========== ===========
</TABLE>
The accompanying notes are an integral part of these statements.
5
<PAGE>
VIDEO DISPLAY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
For the Twelve Months Ended February 28, 1998 and
the Six Months Ended August 31, 1998
<TABLE>
<CAPTION>
Net Unrealized
Loss on
Foreign Noncurrent
Currency Additional Marketable
Common Retained Translation Paid In Equity
Stock Earnings Adjustments Capital Securities
------------ ----------- ------------ ---------- ---------------
<S> <C> <C> <C> <C> <C>
Balance at February 28 1997 $3,529,000 $15,553,000 $(1,311,000) $92,000 $(120,000)
Net income for the year --- 3,541,000 --- --- ---
Currency translation adjustment --- --- 12,000 --- ---
Repurchase of common stock (271,000) --- --- --- ---
Conversion of debt to common stock 150,000 --- --- --- ---
Issuance of common stock under stock
option plan 57,000 --- --- --- ---
Unrealized loss on marketable equity
securities --- --- --- --- (86,000)
---------- ----------- ----------- ---------- ---------
Balance at February 28, 1998 $3,465,000 $19,094,000 $(1,299,000) $92,000 $(206,000)
Issuance of common stock under stock
option plan 22,000 --- --- --- ---
Net income for quarter --- 1,628,000 --- --- ---
Currency translation adjustment --- --- 1,000 --- ---
Repurchase of common stock (93,000) --- --- --- ---
Issuance of stock in exchange for
stock in equity investee 93,000 --- --- --- ---
Issuance of stock in conjunction
with acquisition of MII 445,000 --- --- --- ---
---------- ----------- ----------- ---------- ---------
Balance at August 31, 1998 $3,932,000 $20,722,000 $(1,298,000) $92,000 $(243,000)
========== =========== =========== ========== =========
</TABLE>
6
<PAGE>
Video Display Corporation
STATEMENTS OF CASH FLOWS
For the Six months ended August 31,
<TABLE>
<CAPTION>
1998 1997
------------- ------------
<S> <C> <C>
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ 521,000 $ 670,000
INVESTING ACTIVITIES
Purchase of property, plant and equipment (701,000) (140,000)
Purchase of assets of Wintron, Inc. (400,000) ---
Purchase of stock of MII (50,000)
Increase in other assets (174,000) (21,000)
------------ -----------
Net cash used in investing activities (1,325,000) (161,000)
FINANCING ACTIVITIES
Proceeds from long-term debt and lines of credit 20,789,000 5,886,000
Proceeds from exercise of stock option 22,000 ---
Repurchase of common stock (93,000) ---
Proceeds on note receivable 51,000 45,000
Payments on long-term debt and lines of credit (20,365,000) (6,605,000)
------------ -----------
Net cash used in financing activities 404,000 (674,000)
Effect of exchange rates on cash --- 58,000
------------ -----------
Net increase in cash (400,000) (107,000)
Cash, beginning of period 2,598,000 1,043,000
------------ -----------
Cash, end of period $ 2,198,000 $ 936,000
============ ===========
NONCASH TRANSACTIONS
Issuance of company stock for equity investment
in Infodex $ 93,000 $ ---
Issuance of company stock in conjunction of
investment in MII 446,000 ---
------------ -----------
$ 539,000 $ ---
============ ===========
</TABLE>
The accompanying notes are an integral part of these statements.
7
<PAGE>
VIDEO DISPLAY CORPORATION
STATEMENTS OF CASH FLOWS
For the Six Months ended August 31,
<TABLE>
<CAPTION>
1998 1997
------------ ------------
<S> <C> <C>
RECONCILIATION OF NET EARNINGS FROM CONTINUING
OPERATIONS TO NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
Net earnings from continuing operations $ 1,627,000 $ 512,000
ADJUSTMENTS TO RECONCILE NET EARNINGS TO NET CASH PROVIDED
BY OPERATIONS:
Depreciation and amortization 808,000 424,000
Amortized interest on note receivable (18,000) (9,000)
Decrease in allowance for doubtful accounts 51,000 (3,000)
CHANGES IN OPERATING ASSETS AND LIABILITIES NET OF EFFECTS
FROM ACQUISITIONS:
Decrease in accounts receivable 382,000 613,000
(Increase) decrease in inventory (1,345,000) 374,000
(Increase) decrease in prepaid expenses 104,000 (207,000)
Increase (decrease) in accounts payable and accrued expenses (1,080,000) (1,039,000)
Increase (decrease) in minority interest (8,000) 5,000
----------- -----------
NET CASH PROVIDED BY (USED IN) CONTINUING OPERATIONS $ 521,000 $ 670,000
=========== ===========
</TABLE>
The accompanying notes are an integral part of these statements.
8
<PAGE>
VIDEO DISPLAY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The consolidated financial statements include the accounts of the Company and
its majority owned subsidiaries after elimination of all significant
intercompany accounts and transactions.
The balance sheet at February 28, 1998 has been derived from the audited
financial statements at that date but does not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements.
In the opinion of management, the accompanying unaudited consolidated financial
statements reflect all adjustments "consisting of only normal accruals"
necessary to present fairly the Company's consolidated financial position as of
August 31, 1998 and the Consolidated Statement of earnings for the six months
ended August 31, 1998 and 1997.
NOTE B - INVENTORIES
Inventories are stated at the lower of cost (first in, first out) or market.
<TABLE>
<CAPTION>
Inventories consist of:
August 31, February 28,
1998 1998
----------- ------------
<S> <C> <C>
Raw materials $ 3,072,000 $ 2,925,000
Finished goods 20,184,000 18,566,000
----------- -----------
$23,256,000 $21,491,000
=========== ===========
</TABLE>
NOTE C - ACQUISITIONS
In March 1998, the Company purchased the inventory and equipment of Wintron,
Inc. for $400,000 cash.
In June 1998, the Company acquired Mengel Industries, Inc. for $50,000 cash and
the issuance of 44,000 shares of the Company's common stock.
The following table summarized the unaudited pro forma consolidated results of
operations of the Company, assuming the acquisitions had occurred at the
beginning of the following fiscal period. The pro forma financial information is
not necessarily indicative of what would have occurred had the acquisitions been
made as of that date, nor is it indicative of future results of operations.
9
<PAGE>
VIDEO DISPLAY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
The pro forma amounts give effect to appropriate adjustments for the fair value
of the net assets acquired, amortization of the excess of the purchase price
over the net assets acquired interest expense and income taxes.
<TABLE>
<CAPTION>
Three months ended Six months ended
August 31, August 31,
1998 1997 1998 1997
----------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Net sales $13,762,000 $15,027,000 $29,293,000 $30,094,000
Earnings from continuing operations 1,523,000 1,669,000 3,200,000 2,692,000
Net earnings $ 731,000 $ 824,000 $ 1,618,000 $ 1,306,000
=========== =========== =========== ===========
Basic earnings per share $ 0.19 $ 0.21 $ 0.41 $ 0.33
=========== =========== =========== ===========
Fully diluted earnings per share $ 0.17 $ 0.19 $ 0.36 $ 0.29
=========== =========== =========== ===========
</TABLE>
NOTE D - LONG-TERM DEBT
Long-term debt consisted of the following:
<TABLE>
<CAPTION>
AUGUST 31, February 28,
1998 1998
----------- ------------
<S> <C> <C>
Revolving credit facility. $ 4,237,000 ---
Term loan facility. 773,000 $ 1,200,000
Mortgage payable to bank; monthly principal
payments of $3,000 plus interest at 8.6%;
collateralized by land and building with a
net book value of $701,000 at August 31, 1998. 250,000 271,000
Note payable to industrial development authority;
monthly payment of $4,000 including interest at
6.5%; collateralized by land and building with a
net book value of $410,000 at August 31, 1998. 131,000 149,000
Note payable to bank; monthly principal payments
of $7,800 including interest at 8.25%; collateralized
by computer equipment with a net book value of
$586,000 at August 31, 1998. 354,000 329,000
Other 28,000 42,000
----------- -----------
$ 5,773,000 $ 1,991,000
Less current portion 975,000 975,000
----------- -----------
$ 4,798,000 $ 1,016,000
=========== ===========
</TABLE>
10
<PAGE>
Video Display Corporation
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE E - LINES OF CREDIT
During early 1998, the Company refinanced its loan agreement ("Agreement") to
provide for a $4,500,000 line of credit with its primary bank and $3,500,000
with a second bank secured by substantially all assets of the Company. In
conjunction with this refinancing, the Company borrowed $2,800,000 from the CEO
to pay down the original line of credit. The line of credit had a termination
date of July 1, 1998. The line of credit bears interest at the bank's base rate
(8.5% and 8.25% as of February 28, 1998 and 1997 respectively) plus 1/2%. A
commitment fee of 1/2% is charged on the unused portion of the line of credit.
Borrowings under the line of credit are limited by eligible accounts receivable
and inventory, as defined. Total amount available under the lines of credit was
approximately $257,000 and $2,521,000 as of August 31, 1998 and February 28,
1998. The outstanding balance on the line was $5,279,000 as of February 28,
1998. The Agreement contains affirmative and negative covenants including
requirements related to tangible net worth, indebtedness to tangible net worth,
cash flow coverage, and restricts dividend payments, capital expenditures and
acquisitions. Substantially all of the Company's retained earnings are
restricted based upon these covenants.
Subsequent to February 28, 1998, the Company amended its line of credit with the
primary bank to extend the termination date to July 1, 2000 and to lower the
interest rate to a fixed rate of 7.25% per annum. The commitment fee of 1/2% on
the unused portion was also eliminated. All other terms remained the same as
the original line of credit. This amendment necessitates the reclassification
of the revolver to long term debt. The Company does not anticipate problems
renewing the line of credit with the secondary bank. Additionally, subsequent
to February 28, 1998, the note payable to officer has been repaid.
NOTE F - SUPPLEMENTAL CASH FLOW INFORMATION
<TABLE>
<CAPTION>
AUGUST 31, August 31,
1998 1997
----------- ----------
<S> <C> <C>
Cash paid for:
Interest $ 444,000 $668,000
Income taxes, net of refunds $2,913,000 $776,000
</TABLE>
11
<PAGE>
PART I
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Results of Operations
- ---------------------
The following table sets forth, for the six months ended August 31, 1998 and
1997, the percentages which selected items in the Statements of Income bear to
total revenues:
<TABLE>
<CAPTION>
Fiscal Quarter Six Months
Ended August 31, Ended August 31,
1998 1997 1998 1997
------ ------ ------ -------
<S> <C> <C> <C> <C>
Sales
CRT and components 62.2% 59.3% 61.4% 57.0%
Wholesale electronic parts 37.8 40.7 38.6 43.0
----- ----- ----- -----
100.0% 100.0% 100.0% 100.0%
Cost and expenses
Cost of goods sold 60.1% 61.7% 61.6% 63.5
Selling and delivery 8.1 7.3 7.9 7.8
General and administrative 20.7 18.8 19.4 18.9
----- ----- ----- -----
88.9 87.8 88.9 90.2
Income from Operations 11.1 12.2 11.1 9.8
Interest expense (1.6) (2.2) (1.5) (2.3)
Other income (expense) (0.7) 0.1 (0.3) ---
----- ----- ----- -----
Income before income taxes 8.8 10.1 9.3 7.5
Provision for income taxes 3.5 3.9 3.7% 2.6%
----- ----- ----- -----
Net income 5.3% 6.2% 5.6% 4.9%
===== ===== ===== =====
</TABLE>
Net Sales
- ---------
Consolidated net sales decreased $450,000 or 3.2% and increased $267,000 or 0.9%
for the three and six months ended August 31, 1998 as compared to the same
period one year ago. CRT division sales were up 1.6% or $137,000 and $1,420,000
or 8.7% for the three and six months ended August 31, 1998. The wholesale
consumer electronic parts division sales decreased 10.1% or $587,000 and
$1,153,000 or 9.4% for the same comparative periods.
The net increase in sales of the CRT division is primarily attributable to
internal growth of the Company's newest divisions, MII and Wintron, which added
$773,000 and $1,247,000 for the three and six months ended August 31, 1998. The
remaining net increase in six month CRT sales and decreases in three month of
CRT sales is a result of a slowing of demand in color TV tubes after the
completion of filling backlogged requirements of one of the Company's major
accounts.
12
<PAGE>
The decline in revenues from the wholesale consumer electronic parts segment is
attributed to a reduction in sales to major electronics distributors during the
periods compared. The Company is seeking other opportunities to increase higher
margin consumer electronic sales including a voice activated electronic parts
ordering system and implementation of a world wide web parts inquiry and order
system.
Gross margins
- -------------
Consolidated gross profit margins as a percentage of sales increased from 38.3%
for the quarter ended August 31, 1997 to 39.9% for the quarter ended August 31,
1998. Gross margins were 38.4% versus 36.5% for the same comparative six month
period. The overall increases in margins can be attributed to increases of
bulk purchases of primarily television CRTs at reduced prices being sold in the
current period and higher plant utilization whereby increases in volume did not
correspondingly increase overhead rates. Additionally, revisions in product mix
increase margins as well.
Operating expenses
- ------------------
Selling and general and administrative expenses increased slightly in dollar
amounts and in percentage of sales in the comparative three and six months ended
August 31, 1998 and 1997 from 26.1% to 28.8% and 26.7% to 27.3%. The increase
is due primarily to the additions of SG&A of the newest locations of Wintron and
MII. These additions added $229,000 and $305,000 for the comparative three and
six month periods.
The Company continues to seek ways to reduce operating expenses.
Interest expense
- ----------------
Interest expense decreased $103,000 for the three months and $224,000 for the
six months ended August 31, 1998 compared to the same periods a year ago.
Interest rates were lowered to 7.25% on the Company's primary credit facility.
Additionally, principal amounts outstanding have been lowered.
Income taxes
- ------------
The Company's effective tax rate for the second quarter of fiscal 1998 was 39.5%
as compared to 38.3% for the same period a year ago. The difference in the
effective tax rate is attributable to the utilization of the tax loss carry
forward at the Mexican facility in previous quarters.
Liquidity and capital resources
- -------------------------------
The Company's working capital was $21,590,000 at August 31, 1998 as compared to
$16,441,000 at February 28, 1998. The increase includes a reclassification of
the Company's revolving credit facility from short term to long term due to the
amendment extending the note until July 31, 1000. Also included in the increase
is net assets acquired during the first half of the current year which added
$789,000 to working capital.
13
<PAGE>
PART II
Item 1. Legal Proceedings
No new legal proceedings or material changes in existing litigation
occurred during the quarter ending August 31, 1998.
Item 2. Changes in Securities
None.
Item 3. Defaults upon Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other information
None
Item 6. Exhibits and Reports on Form 8-K
The Company did not file any reports on Form 8-K during the six months
ended August 31, 1998.
14
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereto duly authorized.
VIDEO DISPLAY CORPORATION
October 14, 1998 By: /s/ Ronald D. Ordway
----------------------------------
Ronald D. Ordway
Chief Executive Officer
By: /s/ Carol D. Franklin
----------------------------------
Carol D. Franklin
Chief Financial Officer and Secretary
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> FEB-28-1999
<PERIOD-START> MAR-01-1998
<PERIOD-END> AUG-31-1998
<CASH> 2,198,000
<SECURITIES> 0
<RECEIVABLES> 6,899,000
<ALLOWANCES> 421,000
<INVENTORY> 23,256,000
<CURRENT-ASSETS> 33,141,000
<PP&E> 19,368,000
<DEPRECIATION> 14,499,000
<TOTAL-ASSETS> 41,778,000
<CURRENT-LIABILITIES> 11,551,000
<BONDS> 6,573,000
0
0
<COMMON> 3,932,000
<OTHER-SE> 19,273,000
<TOTAL-LIABILITY-AND-EQUITY> 41,778,000
<SALES> 28,801,000
<TOTAL-REVENUES> 28,801,000
<CGS> 17,746,000
<TOTAL-COSTS> 25,592,000
<OTHER-EXPENSES> 84,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 444,000
<INCOME-PRETAX> 2,681,000
<INCOME-TAX> 1,054,000
<INCOME-CONTINUING> 1,627,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,627,000
<EPS-PRIMARY> $0.41
<EPS-DILUTED> $0.37
</TABLE>
