SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
/ X / QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
------ SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
------ SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
-------------------- --------------------
Commission File No. 1-13048
HEALTHY PLANET PRODUCTS, INC.
-------------------------------
(Exact name of registrant as specified in its charter)
Delaware 94-2601764
------------ --------------
(State or other jurisdiction of (I.R.S. Employer Identification Number)
incorporation or organization)
1129 N. McDowell Blvd., Petaluma, California 94954
- --------------------------------------------- -------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (707) 778-2280
- -------------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last
report.
Check whether the Issuer (1) filed all reports required to be filed by
Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the past
90 days.
Yes X No
-------- -------
As of October 27, 1995, there were issued and outstanding 1,735,694
shares of common stock of the registrant (exclusive of 254,675 shares of voting
Series D Preferred Stock convertible into 254,675 shares of common stock).
Page 1 of 14
<PAGE>
HEALTHY PLANET PRODUCTS, INC.
INDEX
Page
----
Form 10-QSB Cover Page 1
Index 2
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheet at September 30, 1995 3
Statements of Income for the three-months ended 5
and nine months ended September 30, 1995 and 1994
Statements of Cash Flows for the three-months ended 6
and nine months ended September 30, 1995 and 1994
Notes to the Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 9
PART II. 0THER INFORMATION
Item 6. Exhibits and Reports on Form 8-K, Signature 14
Page 2 of 14
<PAGE>
PART I
FINANCIAL INFORMATION
Item 1. Financial Statements
HEALTHY PLANET PRODUCTS, INC.
BALANCE SHEET
ASSETS
September 30,
1995
--------------
(Unaudited)
CURRENT ASSETS
Cash $2,684,488
Accounts receivable - net of allowances for doubtful
accounts and returns of $380,187 2,215,008
Inventories 920,477
Advance on royalties 117,624
Prepaid expenses 50,256
Deferred income taxes 512,000
----------
Total current assets 6,499,853
----------
PROPERTY AND EQUIPMENT, at cost, net of accumulated
depreciation and amortization 449,615
----------
OTHER ASSETS
Deferred income taxes 1,400,000
Security deposits 12,300
Publishing rights - net of accumulated
amortization of $250,253 84,370
Other 3,423
----------
Total other assets 1,500,093
----------
Total assets $8,449,561
==========
The accompanying notes are an integral
part of these financial statements.
Page 3 of 14
<PAGE>
HEALTHY PLANET PRODUCTS, INC.
BALANCE SHEET (Continued)
LIABILITIES AND SHAREHOLDERS' EQUITY
September 30,
1995
--------------
(Unaudited)
CURRENT LIABILITIES
Accounts payable $ 671,369
Royalties payable 83,775
Commissions payable 149,560
Accrued wages, bonus' and payroll taxes 184,550
Accrued liabilities 17,464
-----------
Total current liabilities 1,106,718
ACCRUED RENT PAYABLE 90,465
-----------
TOTAL LIABILITIES 1,197,183
-----------
SHAREHOLDERS' EQUITY
Common stock, $.01 par value, 12,000,000 shares
authorized, 1,727,750 shares issued and outstanding 17,277
Preferred stock, Series B, $.10 par value, with
aggregate liquidation preferences of $150,120,
14,250 shares authorized, 1,251 shares issued
and outstanding 126
Preferred stock, Series D, $.10 par value, with
aggregate liquidation preferences of $1,301,389
371,009 shares authorized, 254,675 issued and
outstanding 25,467
Additional paid-in capital 12,365,499
Accumulated deficit (5,155,991)
-----------
Total Shareholders' Equity 7,252,378
-----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 8,449,561
===========
The accompanying notes are an integral
part of these financial statements.
Page 4 of 14
<PAGE>
<TABLE>
HEALTHY PLANET PRODUCTS, INC.
STATEMENT OF INCOME
(Unaudited)
<CAPTION>
Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------- -------------------------------
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
NET SALES $2,590,692 $2,032,323 $4,627,557 $3,323,516
COST OF GOODS SOLD 1,072,773 834,651 1,763,299 1,212,912
---------- ---------- ---------- ----------
GROSS PROFIT 1,517,919 1,197,672 2,864,258 2,110,604
---------- ---------- ---------- ----------
OPERATING EXPENSES:
Selling, shipping and marketing 415,908 329,221 811,188 619,097
General and administrative 505,465 439,255 1,276,223 1,018,127
---------- ---------- ---------- ----------
921,373 768,476 2,087,411 1,637,224
---------- ---------- ---------- ----------
OPERATING INCOME 596,546 429,196 776,847 473,380
---------- ---------- ---------- ----------
OTHER INCOME:
Interest income 27,920 145 97,194 38,881
Interest expense -- (1,796) -- (1,796)
Other income 1,495 85 1,749 682
---------- ---------- ---------- ----------
29,415 (1,566) 98,943 37,767
---------- ---------- ---------- ----------
INCOME BEFORE TAXES 625,961 427,630 875,790 511,147
PROVISION FOR INCOME TAXES (760,717) (150,000) (882,417) (149,200)
NET INCOME 1,386,678 577,630 1,758,207 660,347
DIVIDENDS ACCUMULATED
ON PREFERRED STOCK -- -- (6,755) (6,755)
---------- ---------- ---------- ----------
INCOME APPLICABLE TO COMMON STOCK $1,386,678 $ 577,630 $1,751,452 $ 653,592
========== ========== ========== ==========
EARNINGS PER SHARE $ .67 $ .30 $ .85 $ .33
========== ========== ========== ==========
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 2,071,195 1,950,037 2,050,191 1,948,416
========== ========== ========== ==========
<FN>
The accompanying notes are an integral
part of these financial statements.
</FN>
</TABLE>
Page 5 of 14
<PAGE>
<TABLE>
HEALTHY PLANET PRODUCTS, INC.
STATEMENT OF CASH FLOWS
(Unaudited)
<CAPTION>
Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------- -------------------------------
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 1,386,678 $ 577,630 $ 1,758,207 $ 660,347
Non-cash items included in net income
Depreciation and amortization 39,137 28,983 109,255 81,410
Increase in allowances for
doubtful accounts and returns 229,595 133,952 175,969 50,180
Change in inventory reserves 95,000 -- 14,203 (25,000)
Increase in deferred income taxes (762,750) (150,000) (902,000) (150,000)
Changes in:
Accounts receivables (1,634,479) (1,489,941) (1,381,147) (1,465,831)
Inventories 87,828 169,019 (240,054) (221,970)
Advances on royalties 153,055 92,396 (117,624) (1,622)
Prepaid expenses 58,130 70,984 (24,229) 33,579
Accounts payable 201,231 (36,239) 445,105 103,919
Royalties payable 10,308 62,050 3,551 (47,779)
Commissions payable 108,740 70,802 25,686 (15,228)
Accrued wages, bonus' and payroll taxes 93,331 39,311 58,278 (9,181)
Accrued liabilities 4,930 2,154 (13,443) (21,261)
Accrued rent payable (33) 3,717 3,650 13,972
----------- ----------- ----------- -----------
Net cash provided (used) by
operating activities 70,701 (425,182) (84,593) (1,014,465)
----------- ----------- ----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of equipment and
color separations (10,921) (6,336) (287,946) (112,732)
Increase in publishing rights (600) (19,035) (20,756) (47,203)
Other -- -- 86,200 --
----------- ----------- ----------- -----------
Net cash used by investing activities (11,521) (25,371) (222,502) (159,935)
----------- ----------- ----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from stock options exercised 47,500 -- 296,250 --
Proceeds from warrants exercised 188,493 -- 188,493 --
Costs on registration of warrants (40,697) -- (40,697) --
Line of credit -- 100,000 -- 100,000
----------- ----------- ----------- -----------
Net cash from financing activities 195,296 100,000 444,046 100,000
----------- ----------- ----------- -----------
INCREASE (DECREASE) IN CASH 254,476 (350,553) 136,951 (1,074,400)
CASH, BEGINNING OF PERIOD 2,430,012 1,975,044 2,547,537 2,698,891
----------- ----------- ----------- -----------
CASH, END OF PERIOD $ 2,684,488 $ 1,624,491 $ 2,684,488 $ 1,624,491
=========== =========== =========== ===========
SUPPLEMENTARY CASH FLOW INFORMATION INCLUDES THE FOLLOWING:
Cash paid during the period for:
Interest $ -- $ 1,797 $ -- $ 1,797
Income taxes $ 2,033 $ -- $ 19,583 $ 800
<FN>
The accompanying notes are an integral part of these statements.
</FN>
</TABLE>
Page 6 of 14
<PAGE>
HEALTHY PLANET PRODUCTS, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 - BASIS OF PRESENTATION
The 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 principals have been omitted pursuant to such rules and regulations.
It is believed, however, that the disclosures are adequate to make the
information presented not misleading.
The financial statements, in the opinion of management, reflect all
adjustments necessary to fairly state the financial position and the results of
operations. These results are not necessarily to be considered indicative of the
results for the entire year.
NOTE 2 - INVENTORIES
Inventories consist of the following:
September 30,
1995
----
Raw materials $ 68,668
Work-in-process 408,375
Finished goods 443,434
---------
$ 920,477
NOTE 3 - PROPERTY AND EQUIPMENT
Property and equipment consist of the following:
September 30,
1995
----
Machinery, equipment and leasehold improvements $ 747,287
Color separations 300,510
Furniture and fixtures 72,664
Computer software 38,171
----------
1,158,632
Less accumulated depreciation and amortization (709,017)
$ 449,615
==========
Page 7 of 14
<PAGE>
HEALTHY PLANET PRODUCTS, INC.
NOTES TO FINANCIAL STATEMENTS (Continued)
(Unaudited)
NOTE 4 - INCOME TAXES
As of January 1, 1995, the Company had available federal net operating
loss and investment tax credit carryforwards of approximately $7,100,000 and
$15,600 to be applied against future federal taxable income, of which $3,816,000
are subject to a limitation under Section 382 of the Internal Revenue Code of
$476,950 per year. Due to the 15 year net operating loss carryforward period and
the Section 382 annual limitation, the Company expects to not be able to utilize
approximately $658,000 of Federal net operating loss. The Company has available
approximately $1,133,000 of California net operating losses which can be carried
forward and offset against future taxable income. These loss carryforwards
expire through 1999. Also available are approximately $16,000 of alternative
minimum tax credit carryforwards to reduce future federal and California regular
income taxes over an indefinite period. In 1992, when the Company adopted FAS
109, Accounting for Income Taxes, it reduced the deferred income tax benefit of
these loss carryforwards by establishing a valuation allowance. However, as of
September 30, 1995, due to the Company's profitability since 1992 and
anticipated future results, management has removed the entire valuation
allowance. Based on anticipated growth in future years, the Company believes it
will fully utilize available Federal net operating losses by the year 2002 and
California net operating losses by 1996.
As a result of the expected utilization of these carryforwards, a
deferred tax asset was derived as follows:
Net operating loss carryforwards $1,795,000
AMT carryforwards 16,000
Other 101,000
----------
1,912,000
Deferred income taxes expected
to be utilized currently (512,000)
----------
Deferred income taxes $1,400,000
==========
Page 8 of 14
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Sales
For the nine months ended September 30, 1995, the Company's net sales
were $4,627,557. This reflected an increase of $1,304,041 or 39.2% versus the
prior year's level of $3,323,516. This increase was a result of a combination of
a 16% price increase on counter cards phased in during the beginning of the
year, and an increase in unit sales of the Company's lines of products. Sales of
the Sierra Club line increased 36% while sales of all the other lines increased
61% to result in the overall increase of 39.2%.
For the three months ended September 30, 1995, net sales amounted to
$2,590,692 which reflected an increase of $558,369 or 27% versus the prior year
level of $2,032,323. Sales of the Company's Sierra Club line increased 27.9% on
a period to period basis. This increase was the result of the price increase and
increased unit sales.
Gross Profit
For the nine months ended September 30, 1995, gross profit amounted to
$2,864,258 or 61.9% of sales. For the comparable prior year quarter, gross
profit amounted to $2,110,604 or 63.5% of sales. Increased sales of lower
margined packaged goods and non-counter card products combined with increased
export sales accounted for the planned decline in gross margin percentage.
For the three months ended September 30, 1995, gross profit amounted to
$1,517,919 or 58.6% of sales. For the comparable prior year quarter, gross
profit amounted to $1,197,672 or 58.9% of sales. Increased sales of lower
margined holiday boxed cards accounted for the gross margin period to period
percentage decline.
Operating Expenses
For the nine months ended September 30, 1995, selling, shipping and
marketing expenses amounted to $811,188 reflecting an increase of $192,091
versus the prior year's level of $619,097. Higher incremental commissions and
shipping expenses associated with increased sales principally contributed to the
period to period increase.
For the three months ended September 30, 1995, selling, shipping and
marketing expenses amounted to $415,908 reflecting an increase of $86,687 versus
last year's level of $329,221. Higher commissions and shipping expenses on
increased sales accounted for the increase.
General and administrative expenses amounted to $1,276,223 for nine
months ended September 30, 1995, reflecting an increase of $258,096 versus last
year's level of $1,018,127. The period to period increase was a result of one
time non recurring costs associated with the Company's move to the American
Stock Exchange, increased professional fees and budgeted increases in office and
warehouse expenditures in support of increased sales.
Page 9 of 14
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULT OF OPERATIONS (Continued)
Operating Expenses (Continued)
For the three months ended September 30, 1995, general and
administrative expenses amounted to $505,465 reflecting an increase of $66,210
versus the prior year level of $439,255. Anticipated increases in staffing,
warehouse space and supplies to support a sales increase accounted for the year
to year increase.
Income Taxes
As of January 1, 1995, the Company had available federal net operating
and investment tax credit carryforwards of approximately $7,100,000 and $15,600,
respectively, to be applied against future federal taxable income, of which
$3,816,000 is subject to a limitation under Section 382 of the Internal Revenue
Code. Due to the 15-year net operating loss carryforward period and the Section
382 annual limitation, the Company does not expect to be able to utilize
approximately $658,000 of these losses, which expire through 2006. The Company
also has available approximately $1,133,000 of California net operating losses
that can be carried forward and offset against future taxable income. These loss
carryforwards expire through 1999. Also available are approximately $16,000 of
alternative minimum tax credit carryforwards to reduce future federal and
California regular income taxes over an indefinite period.
Effective January 1992, the Company adopted provisions of Statement of
Financial Account Standards No. 109 (FAS 109), Accounting for Income Taxes,
which requires recognition of deferred tax liabilities and assets for expected
future tax consequences of events that have been included in the financial
statements or tax returns. Under FAS 109, the Company is allowed to recognize
currently the future benefits of its net operating loss carryforwards. As a
result of the expected utilization of the Company's net operating loss
carryforwards, a deferred tax asset as of September 30, 1995, was derived as
follows:
Net operating loss carryforwards $1,795,000
AMT carryforwards 16,000
Other timing differences 101,000
----------
1,912,000
Deferred income taxes expected to
be utilized currently (512,000)
Deferred income taxes $1,400,000
==========
Management of the Company believes it is more likely than not the tax
benefits of the net operating loss carryforwards will be realized. Management's
belief is based on the Company's actual profitable results in excess of initial
projections in each of the years 1992, 1993, 1994, and for the nine months ended
September 30, 1995. The Company has estimated its future taxable income based on
actual results for the years 1992 through 1994. In utilizing the net operating
loss carryforward, the Company projected net income growth in 1992 through 1994
Page 10 of 14
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULT OF OPERATIONS (Continued)
Income Taxes (Continued)
of approximately 10 percent per year; and, in each year, actual results exceeded
projections.
Based on these results, the Company is conservatively projecting net
income growth of 10 percent per year through 2000 and 5 percent per year
thereafter. During the nine months ended September 30, 1995, the Company's
actual results are ahead of the original forecast. As a result, it is expected
approximately $500,000 of deferred income taxes will be utilized in 1995 to
offset current year's income. Based on anticipated growth, the Company believes
it will fully utilize available federal net operating losses by the year 2002
and California net operating losses by 1996.
The foregoing constitutes management's best estimates based upon
current conditions and most recent results of operations. These include
management's forecast of increased sales, reduced costs due to continued
automation of packaging and expected cost savings due to larger orders of
materials. Operating expenses have also been adjusted to account for increased
sales and administrative costs. Due to the past low inflation rates, the
forecasts were not adjusted for inflation, as it is expected the effects would
be minimal. Results of operations in future years are subject to many conditions
beyond the control of management and which affect the amount of taxable income
that may be generated in future years and the Company's resultant ability to
fully utilize the deferred income tax asset. Such conditions include: general
economic; the Company's ability to maintain its present gross margins;
competition generally and specifically relating to greeting cards having
environmental and wildlife theme; the Company's ability to continue to renew its
principal Sierra Club license agreement, which presently expires on December 31,
2005; and continuity of present management. The Company has not contemplated the
use of any new tax planning strategies in calculating the deferred income tax
asset.
Income
Net income amounted to $1,758,207 for the nine months ended September
30, 1995 representing $.85 per share. Included in this result was $.43 per share
due to the adoption of FAS 109, Accounting for income taxes. For the nine months
ended September 30, 1994 net income amounted to $660,347 or $.33 per share.
Included in this result was $.08 per share due to the adoption of FAS 109,
Accounting for income taxes. The comparative per share data is based on weighted
average shares outstanding in each of the respective periods.
Balance Sheet
Total assets amounted to $8,449,561 as of September 30, 1995 versus the
December 31, 1994 level of $5,724,481, reflecting an increase of $2,725,080. The
period to period increase was caused by increases in cash, receivables, royalty
advances, inventory, prepaid expenses, capital expenditures and deferred taxes.
Included in cash as of September 30, 1995 was $444,046 due to the exercise of
stock options and warrants net of registration costs
Page 11 of 14
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULT OF OPERATIONS (Continued)
Balance Sheet (Continued)
approximating $41,000. Total current liabilities amounted to $1,106,718 at
September 30, 1995 versus the December 31, 1994 level of $587,541. The increase
was a result of the build-up of trade payables, seasonal commissions and
bonuses.
Liquidity and Capital Resources
At September 30, 1995, the Company's working capital was $5,393,135
reflecting a 30% increase over working capital at December 31, 1994 of
$4,140,479. Cash of $84,593 was used during the period to support operating
activities. Cash of $287,946 was used during the period for capital
expenditures. The major purchase was an automated boxing machine which will
improve the Company's capacity and efficiency.
The present primary sources of the Company's liquidity have been cash
internally generated from operations, proceeds obtained by the Company through
the public sale of its securities, and the availability of a secured line of
credit. The Company has a $500,000 secured line of credit from Westamerica Bank.
The Company draws on this line from time to time on a short term basis. As of
September 30, 1995, there was no outstanding amount under this line of credit.
Effects of Inflation
The Company does not view the effects of inflation as having a material
effect upon its business. Increases in paper and labor costs have been offset by
increases in the price of the Company's cards and through higher print runs,
which have reduced the unit cost of the Company's card product. While the
Company has in the past increased its prices to its customers, it has maintained
its relative competitive price position within the general range of greeting
cards.
Page 12 of 14
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits
Exhibit No. Description
----------- -----------
11 Computation of Earnings Per Share
27 Financial Data Schedule
b. Reports on Form 8-K
During the quarter ended September 30, 1995, the following
reports on Form 8-K were filed by the registrant:
Date of Report Item Reported Description of Item
-------------- ------------- -------------------
August 17, 1995 Item 5. Other Events Report on Annual
Meeting of
Stockholders held on
August 11, 1995.
SIGNATURES
In accordance with the requirements of the Securities Exchange Act, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
HEALTHY PLANET PRODUCTS, INC.
(Registrant)
DATED: November 7, 1995 by: /s/ Bruce A. Wilson
--------------------
Bruce A. Wilson
President, Chief Executive, Chief
Operating and Chief Financial Officer.
Page 13 of 13
<TABLE>
HEALTHY PLANET PRODUCTS, INC.
COMPUTATION OF EARNINGS PER SHARE
EXHIBIT II
<CAPTION>
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
Sept. 30, 1995 Sept. 30, 1994 Sept. 30, 1995 Sept. 30, 1994
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Primary earnings per share
Net income $1,386,678 $ 577,630 $1,758,207 $ 660,347
Cumulative dividends on preferred stock -- -- (6,755) (6,755)
---------- ---------- ---------- ----------
Income applicable to common stock $1,386,678 $ 577,630 $1,751,452 $ 653,592
========== ========== ========== ==========
Shares
Weighted average number of common
shares outstanding 1,701,061 1,522,216 1,625,387 1,522,031
Add dilutive effect of conversion of preferred
stock and outstanding options and warrants,
as determined by the application of the
treasury stock method 370,134 427,821 424,756 426,385
---------- ---------- ---------- ----------
2,071,195 1,950,037 2,050,191 1,948,416
========== ========== ========== ==========
Primary earnings per share $ .67 $ .30 $ .85 $ .33
========== ========== ========== ==========
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<PERIOD-START> JAN-01-1995
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 2,684,448
<SECURITIES> 0
<RECEIVABLES> 2,595,195
<ALLOWANCES> 380,187
<INVENTORY> 920,477
<CURRENT-ASSETS> 6,499,853
<PP&E> 1,158,632
<DEPRECIATION> 709,187
<TOTAL-ASSETS> 8,449,561
<CURRENT-LIABILITIES> 1,106,718
<BONDS> 0
<COMMON> 17,277
0
25,593
<OTHER-SE> 7,209,508
<TOTAL-LIABILITY-AND-EQUITY> 8,449,561
<SALES> 4,627,557
<TOTAL-REVENUES> 4,726,500
<CGS> 1,763,299
<TOTAL-COSTS> 3,850,710
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 875,790
<INCOME-TAX> (882,417)
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,751,452
<EPS-PRIMARY> .85
<EPS-DILUTED> .85
</TABLE>
