FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(Mark one)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE QUARTER ENDED JUNE 30, 1996
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER: 0-7513
ARTISTIC GREETINGS INCORPORATED
(Exact name of registrant as specified in its charter)
DELAWARE 16-0909929
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
ONE KOMER CENTER
ELMIRA, NEW YORK 14902
(607) 737-5235
(Address of principal executive offices, including Registrant's telephone
number)
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.
[ X ] Yes [ ] No
As of July 31, 1996, the Registrant had 6,543,751 shares of its common stock
issued and outstanding.
<PAGE>
PAGE NO.
Part I. Financial Information
Item 1. Financial Statements
Balance Sheets 3
Unaudited Statements of Operations 4
Unaudited Statements of Cash Flows 5
Unaudited Notes to Condensed Financial Statements 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 8
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders 12
Item 6. Exhibits and Reports on Form 8-K 12
Signatures 13
Exhibit Index 14
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
ARTISTIC GREETINGS INCORPROATED
BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
IN THOUSANDS OF DOLLARS, EXCEPT PER SHARE DATA (Unaudited)
ASSETS
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 534 $ 529
Marketable securities:
Trading at market (cost $2,452
in 1996 and $1,704 in 1995) 2,709 1,926
Available for sale, at market
(cost $9 in 1996 and $651 in 1995) 18 653
Trade receivables - net 1,242 1,803
Income taxes receivable - 900
Inventories:
Finished goods 891 798
Work-in-process 694 492
Raw materials and supplies 1,810 4,559
Prepaid advertising 4,622 6,116
Prepaid expenses and other 171 27
TOTAL CURRENT ASSETS 12,691 17,803
Deferred advertising 2,412 3,537
Property, plant and equipment - net 16,206 16,869
Cash surrender value of life insurance 335 308
Other assets 60 137
TOTAL ASSETS $ 31,704 $ 38,654
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable to bank $ - $ -
Current portion of long-term debt 1,954 1,777
Accounts payable - trade 8,193 13,993
Accrued liabilities 1,519 991
Customer advances 263 237
TOTAL CURRENT LIABILITIES 11,929 16,998
Long-term debt 6,500 9,593
Other liabilities 433 483
TOTAL LIABILITIES 18,862 27,074
Common stock subject to put option - 500,000 shares 2,187 2,032
STOCKHOLDERS' EQUITY:
Common stock, par value $.10:
Authorized: 10,000,000 shares
Issued: 6,037,720 shares in 1996;
6,037,720 shares in 1995 604 604
Additional paid-in capital 11,027 11,028
Unrealized gains on marketable securities
held as available for sale,
net of tax effect 1 1
Retained earnings .................................... (46) (1,149)
11,586 10,484
Less: Treasury stock, at cost (215,356 and
216,427 shares in 1996 and
1995, respectively) (931) (936)
TOTAL STOCKHOLDERS' EQUITY 10,655 9,548
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $31,704 $38,654
</TABLE>
THE ACCOMPANYING NOTES TO CONDENSED FINANCIAL STATEMENTS ARE AN INTEGRAL PART
OF THESE FINANCIAL STATEMENTS.
<PAGE>
ARTISTIC GREETINGS INCORPORATED
UNAUDITED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
QUARTER ENDED SIX-MONTHS ENDED
June 30, June 30,
IN THOUSANDS OF DOLLARS, EXCEPT PER SHARE DATA 1996 1995 1996 1995
<S> <C> <C> <C> <C>
Net sales $ 22,250 $ 18,982 $ 49,258 $ 40,469
Cost of sales 8,931 7,422 19,982 15,527
Gross profit 13,319 11,560 29,276 24,942
Selling, advertising, general and
administrative expenses 12,535 11,887 27,401 27,045
INCOME (LOSS) FROM OPERATIONS 784 (327) 1,875 (2,103)
Other income (expense)
Interest and dividend income 11 120 79 225
Net unrealized gains on trading securities 8 84 52 147
Net realized gains (losses) on marketable
securities 44 (71) 83 (98)
Interest expense (187) (220) (518) (366)
Other (230) 31 (469) 245
INCOME (LOSS) BEFORE TAXES 430 (383) 1,102 (1,950)
Provision for (benefit from) income taxes 0 (146) 0 (684)
NET INCOME (LOSS) $ 430 $ (237) 1,102 (1,266)
Net income (loss) per common and common
equivalent share $ 0.07 $ (0.04) $ 0.17 $ (0.21)
Weighted average number of common shares
outstanding 6,321,940 6,008,564 6,321,617 5,926,939
</TABLE>
THE ACCOMPANYING NOTES TO CONDENSED FINANCIAL STATEMENTS ARE AN INTEGRAL PART
OF THESE FINANCIAL STATEMENTS.
<PAGE>
ARTISTIC GREETINGS INCORPORATED
UNAUDITED STATEMENTS OF CASH FLOWS
IN THOUSANDS OF DOLLARS, EXCEPT PER SHARE DATA
<TABLE>
<CAPTION>
SIX MONTHS ENDED
June 30, June 30,
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net income (loss) $ 1,102 $ (1,266)
Adjustments to reconcile net income
(loss) to net cash provided by
(used in) operating activities:
Depreciation and amortization 1,279 1,053
Net unrealized gains on trading securities (52) (147)
Net realized (losses) gains on marketable securities (83) 98
Purchase of trading securities (1,653) (1,271)
Proceeds from sale of trading securities 1,006 262
Amortization of interest credit from
New York State Urban
Development Corporation grant (50) -
Accretion of common stock subject to put option 156 -
Increase in cash surrender value of life insurance (28) (38)
(Increase) decrease in assets:
Trade receivables 561 (163)
Income taxes receivable 900 (154)
Inventories 2,454 (1,234)
Prepaid advertising, prepaid expenses and other 1,427 (4,077)
Deferred advertising 1,125 1,508
Increase (decrease) in liabilities:
Checks-in-transit (625) (931)
Accounts payable - trade (5,175) 664
Accrued liabilities 528 (440)
Customer advances 25 694
Deferred income taxes - (344)
Federal and state taxes payable - -
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES 2,897 (5,786)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment (615) (4,211)
Purchase of marketable securities - (935)
Proceeds from sale of marketable securities 633 6,180
NET CASH PROVIDED BY INVESTING ACTIVITIES 18 1,034
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of amounts received under lines of credit (13,754) (21,185)
Proceeds received under lines of credit 11,713 19,417
Proceeds from long-term borrowings - 5,000
Proceeds from issuance of common stock,
treasury stock and options exercised 4 1,881
Repayment of long-term debt (874) (392)
NET CASH (USED IN) PROVIDED BY
FINANCING ACTIVITIES (2,911) 4,721
Net increase (decrease) in cash and cash equivalents 4 (31)
Cash and cash equivalents at beginning of period 529 149
Cash and cash equivalents at end of period $ 533 $ 118
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid (received) during the period for:
Interest $ 379 $ 360
Income taxes, net of refunds received 906 (131)
</TABLE>
THE ACCOMPANYING NOTES TO CONDENSED FINANCIAL STATEMENTS ARE AN INTEGRAL PART
OF THESE FINANCIAL STATEMENTS.
<PAGE>
ARTISTIC GREETINGS INCORPORATED
NOTES TO CONDENSED FINANCIAL STATEMENTS
In thousands of dollars, except per share data
NOTE 1. STATEMENT OF MANAGEMENT
The condensed financial statements included herein have been prepared by
the Company, without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements, prepared in accordance
with generally accepted accounting principles, have been condensed or omitted
pursuant to such rules and regulations, although the Company believes that the
disclosures are adequate to make the information presented not misleading. The
Company incorporated reclassifications of 1995 information to conform to the
current presentations of its financial statements included herein. It is
suggested that these condensed financial statements be read in conjunction with
the financial statements and the notes thereto included in the Company's 1995
report on Form 10-K.
In the opinion of management, the information contained herein reflects all
adjustments that are of a normal recurring nature and necessary to provide a
fair statement of the results of operations for the periods presented in the
statements of operations included herein.
NOTE 2. FORM 10-K
Reference is made to the following footnotes included in the Company's 1995
report on Form 10-K:
1. Summary of Significant Accounting Policies
2. Marketable Securities
3. Inventories
4. Property, Plant and Equipment
5. Accrued Liabilities
6. Income Taxes
7. Leases
8. Debt
9. Defined Contribution Savings Plan
10. Stock Options
11. Stockholders' Equity
12. Related Party Transactions
13. Commitments and Contingencies
14. Supplemental Disclosure of Noncash Investing and Financing Activity
15. New Accounting Standards
NOTE 3. NET INCOME PER SHARE
Net income or loss per common and common equivalent share is computed on
the basis of the weighted average of common and common equivalent shares
outstanding during the period. The weighted average number of shares
outstanding was 6,540,842 for the quarter ended June 30, 1996 and 6,008,564 for
the quarter ended June 30, 1995.
The weighted average number of shares outstanding was 6,540,519 for the
six-month period ended June 30, 1996 and 5,926,939 for the six-month period
ended June 30, 1995.
NOTE 4. SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITY.
On May 30, 1995 (the "Acquisition Date"), the Company acquired certain
assets of Valcheck Company in exchange for 500,000 shares of the Company's
common stock. The common stock was issued at a price of $3.75 per share for an
aggregate of $1,875. The common stock is puttable to the Company, at the
Seller's option, on the second anniversary of the Acquisition Date at $5 per
share.
Fair value of assets acquired $ 1,875
Less: common stock issued 1,875
Cash paid $ -
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.
(Dollars in thousands, except per share data)
Results of Operations:
NET SALES
Second quarter sales of $22,250 were 17.2% higher than the $18,982 revenues for
the comparable 1995 period. This increase resulted primarily from a 41.7%
increase in check sales from $7,509 in the second quarter of 1995 to $10,642 in
1996. This growth is attributable to the increase in the Company's check-
customer base, an increase in the Company's free standing insert advertising
circulation, the acquisition of customers in May of 1995 as a result of the
acquisition of assets of Valcheck Company (the "Valcheck Acquisition") and the
increase in the Company's reorder customers relative to its first-time
customers. For the second quarter of 1996, a decrease in revenues for
personalized name and address products (consisting of labels, MiniPrinters(R),
self-inking stamps and certain other products generally sold through mass media
channels ("personalized products")) was approximately offset by increased
catalog sales. Personalized products sales of $8,026 in the second quarter of
1996 were 15.6% lower than sales of $9,514 in the second quarter of 1995 due to
advertising reductions to improve profitability but which lowered sales volume.
Catalog sales of $2,518 in the second quarter of 1996 were 133.8% above the
sales of $1,077 in the comparable period for 1995 as a result of an increase in
catalog mailings to certain selected prospective customers.
For the six months ended June 30, 1996, sales of $49,258 were 21.7% higher than
the $40,469 revenues reported for the comparable 1995 period. Check sales
through June 30, 1996 were $22,180, representing a 65.3% increase from the
$13,419 reported for the comparable period in 1995. Revenues for personalized
products decreased 12.3% for the six months of 1995 from $21,880 to $19,186 in
1996. Catalog shipments were 82.9% higher at $5,356 through June 30, 1996 as
compared to $2,929 in 1995. The factors for year-to-year changes in revenue
for the six-month period are the same as outlined above for the second quarter.
COST OF SALES
The major components of cost of goods sold are materials, which consist
primarily of paper and gift items; direct labor; and manufacturing overhead.
The cost of materials in the second quarter of 1996 increased 24.4% to $4,487
from $3,608 in the second quarter of 1995, which reflects a 1.2% increase as a
percentage of sales from the prior period. The increase as a percentage of
sales is primarily the result of the increase in subcontracting of a portion of
check personalization and fulfillment as well as the increase in check
production, with its relatively higher material content as a percent of sales.
Material costs for higher catalog sales volume more than offset volume-related
decreases in material costs for personalized products.
The cost of materials for the first six months of 1996 increased 36.7% to
$10,463 from $7,652 in the first half of 1995, which reflects a 2.3% increase
as a percentage of sales from year to year. The increase as a percentage of
sales is due to the reasons outlined above for the second quarter. Material
costs for higher catalog sales volume more than offset volume-related decreases
in material costs for personalized products.
Direct labor was up 12.5% from $1,533 in the second quarter of 1995 to $1,725
in the comparable period of 1996. This represents a decrease of 0.3% as a
component of net sales during that period. The increased amount is due to
higher telemarketing effort to support higher catalog volume and increasing
check reorders. Partially offsetting the higher telemarketing labor were
decreases in check-production labor due to manufacturing efficiencies and
subcontracting a portion of check printing in 1996 versus all internal
production in the second quarter of 1995.
Direct labor was up 13.4% from $3,212 in the first half of 1995 to $3,643 in
the first half of 1996. This represents a decrease of 0.5% as a component of
net sales during that period. The same reasons as above for quarterly direct
labor changes apply to the six-month changes from 1995 to 1996.
Manufacturing overhead increased 22.7% to $2,718 in the second quarter of 1996
from $2,215 in the comparable period of 1995, however, such increase only
represents a 0.5% increase as a component of sales between periods. Telephone
expense increased due to a higher proportion of telemarketing for catalog
orders and increasing check reorders. Employee benefits increased
substantially between periods as a result of both overall higher employment
levels and the conversion of long-term temporary personnel to full-time status.
Finally, depreciation expense increased by 26.0% from $362 in the second
quarter of 1995 to $456 in the comparable period of 1996, as a result of the
purchase and refurbishment of the Company's new manufacturing facility,
Artistic Plaza, in addition to the purchase of check-printing equipment to
support volume increases.
Manufacturing overhead increased 27.7% to $5,875 in the first half of 1996 from
$4,599 in the comparable period of 1995, however, such increase only represents
a 0.6% increase as a component of sales between periods. Year-to-year changes
through June 30 are due to the same reasons as discussed above, in addition to
volume-related increases in areas such as supplies and equipment maintenance.
SELLING, GENERAL AND ADMINISTRATIVE (SG&A)
The three largest components of SG&A expenses are advertising, postage and
labor.
Advertising expense increased 2.0% to $8,747 in the second quarter of 1996 from
$8,577 in the comparable period of 1995, which represents a decrease of 5.9% as
a component of sales. Although advertising for personalized products decreased
by 25.2% from the second quarter of 1995 due to downsizing efforts to improve
profitability, such decrease was more than offset by a 39.0% increase in
advertising for checks, as the Company took advantage of increased availability
of circulation resulting from an advertising agreement with Valassis
Communications, Inc. that was entered into in connection with the Valcheck
Acquisition and a 289.7% increase in catalog advertising to take advantage of
improved catalog profitability through more targeted advertising placement.
Advertising expense decreased 4.0% to $19,186 in the first half of 1996 from
$19,978 in the comparable period of 1995, which represents a decrease of 10.4%
as a component of sales. These changes through June 30, 1996, compared to the
period through June 30, 1995, are the result of the same factors as outlined
above for the second quarter. For the six months, personalized products
advertising decreased 27.5%, while checks and catalog advertising increased
45.3% and 64.9%, respectively.
Postage and shipping expense in the second quarter of 1996 increased to $1,985
from $1,650 in the comparable period of 1995, representing a .2% increase as a
component of sales. Such aggregate increase in postage and shipping expense,
and as a percentage of sales, is attributable primarily to check volume
increases, which packages are generally heavier and cost more to ship than
other product lines.
Postage and shipping expense for the first six months of 1996 increased 21.9%
to $4,417 from $3,622 in the comparable period of 1995. However, such increase
represents the same percentage as a component of sales as in 1995. The factors
causing the increase in expense are the same as above for the second quarter.
Other administrative expense increased in the second quarter of 1996 by 4.2% to
$1,803 from $1,731 in the comparable period of 1995, representing a reduction
of 1.0% as a component of sales. This reduction as a percentage of sales is
substantially the result of the increase in revenues. The increase in expenses
is mostly attributable to higher personnel-related costs, maintenance expense
and amortization of transaction costs related to the Valcheck Acquisition.
Partially offsetting these increases were lower utilities expenses.
Other administrative expense increased in the first six months of 1996 by 8.0%
to $3,799 from $3,517 in the comparable period of 1995, representing a
reduction of 1.0% as a component of sales. This reduction as a percentage of
sales is substantially the result of the increase in revenues. The increase in
expenses is primarily due to higher legal costs, personnel-related expense and
amortization of transaction costs related to the Valcheck acquisition.
OTHER EXPENSE (INCOME)
The Company incurred other expenses of $354 in the second quarter of 1996, a
change from $56 expense in the comparable period of 1995. Bonus/profit sharing
accruals increased based on income from operations. Interest expense decreased
15.0% to $187 in the second quarter of 1996 from $220 in the comparable period
of 1995, which represents a decrease of .3% as a component of sales. The
decrease in interest expense was due to a reduction of borrowing originally
incurred to support the expansion of facilities and working capital for the
growth of the check business. Additionally, in June 1995 the Company began to
accrete a monthly expense to account for the increase of the value of the
common stock subject to a put option granted to Valcheck (the "Valcheck put
option") in the Valcheck Acquisition.
The Company incurred other expenses of $773 in the first six months of 1996, a
change of 605.2% from ($153) other income in the comparable period of 1995.
The primary reasons for this change are increases in bonus/profit sharing
accruals based on income from operations, in addition to accretion of the value
of the Valcheck put option as mentioned above.
TAX PROVISION
No tax provision was recorded in the second quarter of 1996 as compared to a
tax benefit recorded in the prior period of $146, based on the Company's
expectation that it will recognize a tax benefit for its net operating loss
carryforward. No tax provision was recorded in the first six months of 1996 as
compared to a tax benefit recorded in the prior period of $684, also based on
the Company's expectation that it will recognize a tax benefit for its net
operating loss carryforward.
NET INCOME
For the reasons discussed above, the Company's net income in the second quarter
of 1996 increased 281.4% to $430 or $0.07 per share, from a net loss in the
prior period of $237 or $0.04 per share. The Company's net income in the first
half of 1996 increased 187.1% to $1,102 or $0.17 per share, from a net loss in
the prior period of $1,266 or $0.21 per share.
<PAGE>
LIQUIDITY & CAPITAL RESOURCES
Cash and cash equivalents, combined with marketable securities, totaled $3,108
at December 31, 1995 and $3,261 at June 30, 1996. Total current liabilities
decreased by $5,069 or 29.8% from $16,998 at December 31, 1995 to $11,929 at
June 30, 1996. The decrease in long-term debt from $9,593 at December 31, 1995
to $6,500 at June 30, 1996 was the result of the paydown of the revolving line
of credit and repayment of long-term debt. Notes payable to bank was reduced
from $4,962 at December 31, 1995 to $2,921 at June 30, 1996. Accounts payable
was reduced by 41.4% from $13,993 at the end of 1995 to $8,193 at June 30,
1996. At June 30, 1996, the Company had total borrowing capacity of $6,045 in
its secured line of credit with its bank of which total approximately $3,124
remained available for borrowing as of such date. The Company believes that it
has sufficient resources from its present cash and cash equivalent position,
cash flow from operations and its line of credit to meet its current
obligations. The Company also believes that its cash and cash equivalent
position, combined with operating revenues and its existing credit line, will
be sufficient to finance its internal growth and capital expenditures needs and
meet its obligations under its credit facility during the next twelve months.
<PAGE>
PART II - OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The Company held its annual meeting of stockholders on May 2, 1996.
At that meeting, two proposals were acted upon. The first was the
election of the Company's Board of Directors. Stuart Komer, Lyndon E.
Goodridge, Norman S. Edelcup, Alan F. Schultz, Irving Stone and Morry
Weiss were each re-elected as a Director of the Company for a one-year
term. The detail concerning the votes cast for, against and withheld
from voting with respect to each such Director is as follows:
Votes:
NAME FOR AGAINST WITHHELD
S. Komer 4,128,215 5,400 8,575
L. Goodridge 4,133,125 490 8,575
N. Edelcup 4,130,875 2,740 8,575
A. Schultz 4,131,475 2,140 8,575
I. Stone 4,128,975 4,640 8,575
M. Weiss 4,131,425 2,190 8,575
There were no other Directors whose terms of office continued after this
Meeting.
Also at this meeting, the Company's stockholders ratified the selection of
Arthur Andersen LLP as the Company's independent auditors for its 1996 fiscal
year. The detail concerning the votes cast for, against and abstaining from
voting with respect to this Proposal is as follows:
Votes:
FOR AGAINST ABSTAINING
4,132,741 8,934 515
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
a) Exhibits. See Exhibit Index.
b) Reports on Form 8-K. None.
<PAGE>
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.
ARTISTIC GREETINGS INCORPORATED
Dated: August 13, 1996 By: /s/Robert E. Johnson
Robert E. Johnson
Senior Vice President Finance and
Chief Financial Officer
<PAGE>
EXHIBIT INDEX
EXHIBIT
NUMBER DESCRIPTION LOCATION
11 Statement re: computation of See Note 3 to the Financial
per share earnings Statements contained in this
report
27 Financial Data Schedule Filed only with EDGAR filing,
per Regulation S-K,
Rule 601(c)(1)(v)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S FORM 10-Q FOR ITS QUARTER ENDED JUNE 30, 1996 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000007610
<NAME> ARTISTIC GREETINGS INCORPORATED
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-1-1996
<PERIOD-END> JUN-30-1996
<EXCHANGE-RATE> 1
<CASH> 534
<SECURITIES> 2,727
<RECEIVABLES> 1,305
<ALLOWANCES> 63
<INVENTORY> 3,395
<CURRENT-ASSETS> 12,691
<PP&E> 17,485
<DEPRECIATION> 1,279
<TOTAL-ASSETS> 31,704
<CURRENT-LIABILITIES> 11,929
<BONDS> 6,500<F1>
0
0
<COMMON> 604
<OTHER-SE> 10,051
<TOTAL-LIABILITY-AND-EQUITY> 31,704
<SALES> 49,258
<TOTAL-REVENUES> 49,258
<CGS> 19,982
<TOTAL-COSTS> 47,383
<OTHER-EXPENSES> 255
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 518
<INCOME-PRETAX> 1,102
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,102
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,102
<EPS-PRIMARY> 0.17
<EPS-DILUTED> 0.17
<FN>
<F1>Long-term debt.
</FN>
</TABLE>
