UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
- -----
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended: March 31, 1997
- ----- TRANSACTION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 0-20179
RECYCLING INDUSTRIES, INC.
----------------------------------------
(Exact Name of Registrant as Specified in its Charter)
Colorado 84-1103445
- ------------------------------- -----------------------------------
(State or Other Jurisdiction of (IRS Employer Identification Number)
Incorporation or Organization)
384 Inverness Drive South, Suite 211
Englewood, Colorado 80112
- ------------------------------------------------ ------------
(Mailing Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: (303) 790-7372
Securities Registered Pursuant to Section 12(b) of the Act: None
Securities Registered Pursuant to Section 12(g) of the Act: Common Stock,
$.001 Par Value
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 Issuer's classes
of common stock as of the close of the period covered by this Report.
Number of Shares Outstanding As Of
Class March 31, 1997
- ---------------------------- ---------------------------------
Common Stock, $.001 Par Value 13,555,793
TABLE OF CONTENTS
PART I -- FINANCIAL INFORMATION PAGE
------
Item 1. Financial Statements*
Consolidated Balance Sheets - March 31, 1997
and September 30, 1996 1-2
Consolidated Statements of Earnings for the three
months and six months ended March 31, 1997 and 1996 3-4
Consolidated Statement of Stockholders' Equity
for the six months ended March 31, 1997 5
Consolidated Statements of Cash Flows
for the six months ended March 31, 1997 and 1996 6
Notes to the Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8-11
PART II -- OTHER INFORMATION
Item 6 12
Signatures 13
- -------------------------------
*The accompanying interim financial statements have not been audited
by an independent certified public accountant. Only those statements
corresponding to a fiscal year-end (September 30) are audited.
RECYCLING INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 31, 1997 AND SEPTEMBER 30, 1996
(Thousands of Dollars)
ASSETS
----------
March 31, September 30,
1997 1996
------------- ---------------
CURRENT ASSETS
Cash $ 527 $ 1,450
Accounts receivable,
less allowance for doubtful accounts
of $20 and $10 5,588 4,379
Accounts receivable, related party 86 77
Inventories 2,456 2,473
Deferred income taxes 510 -
Prepaid expenses and deposits 335 392
------------- ---------------
Total Current Assets 9,502 8,771
------------- ---------------
PROPERTY, PLANT AND EQUIPMENT, net 20,455 20,492
------------- ---------------
OTHER ASSETS:
Deferred income taxes 585 800
Other assets, net of amortization 5,040 4,792
------------- ---------------
Total Other Assets 5,625 5,592
------------- ---------------
TOTAL ASSETS $ 35,582 $ 34,855
------------- ---------------
------------- ---------------
See Accompanying Notes to the Consolidated Financial Statements
RECYCLING INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 31, 1997 AND SEPTEMBER 30, 1996
(Thousands of Dollars)
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
March 31, September 30,
1997 1996
-------------- -----------
CURRENT LIABILITIES:
Current maturities of long-term debt $ 3,092 $ 1,707
Current maturities of long-term debt,
related parties 1,293 2,075
Accounts payable 2,688 2,673
Accounts payable - related parties - 61
Income taxes payable - 107
Other current liabilities 412 551
----------- ------------
Total Current Liabilities 7,485 7,174
----------- ------------
LONG-TERM DEBT:
Long-term debt, less current maturities 10,306 10,067
Long-term debt - related parties,
less current maturities 736 1,951
----------- -----------
Total Long-term Debt 11,042 12,018
----------- ------------
Total Liabilities 18,527 19,192
----------- -----------
COMMITMENTS & CONTINGENCIES:
Redeemable common stock,
$.001 par value, 363,636 shares
issued and outstanding 1,500 1,500
----------- -----------
STOCKHOLDERS' EQUITY:
Preferred stock, no par value, 10,000,000
shares authorized
Series C, convertible, 10,000, and 0 shares
issued and outstanding 907 -
Common Stock ($.001 par value), 50,000,000
shares authorized, 13,555,793 and 13,430,793
shares issued and outstanding 13 13
Additional paid-in capital 25,566 25,547
Accumulated deficit (10,931) (11,397)
----------- -----------
Total Stockholders' Equity 15,555 14,163
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 35,582 $ 34,855
----------- -----------
----------- -----------
See Accompanying Notes To The Consolidated Financial Statements
RECYCLING INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
Three Months Ended March 31, 1997 and 1996
(Thousands of dollars except per share amounts)
March 31, 1997 March 31, 1996
--------------- ---------------
Net sales $ 12,741 $ 7,305
Cost of sales and operating expenses 10,361 5,937
-------------- ------------
Gross profit 2,380 1,368
Selling, general and administrative expenses 1,450 797
-------------- ------------
Operating income 930 571
-------------- -----------
Other income (expense):
Interest expense (430) (149)
Miscellaneous 26 -
-------------- ------------
Total other income (expense) (404) (149)
-------------- ------------
Earnings before income taxes and
extraordinary gain 526 422
Extraordinary gain from settlement of debt - 48
-------------- ------------
Earnings before income taxes 526 470
Income tax (expense) benefit 295 (4)
-------------- ------------
Net earnings $ 821 $ 466
-------------- ------------
-------------- ------------
Net earnings available to common
shareholders $ 541 $ 466
-------------- ------------
-------------- ------------
Earnings per common share
Net earnings before extraordinary item $ 0.04 $ 0.04
Extraordinary item - 0.01
-------------- ------------
Earnings per common share $ 0.04 $ 0.05
-------------- ------------
-------------- ------------
Weighted average shares outstanding 14,847,000 10,341,000
------------- ------------
------------- ------------
See Accompanying Notes To The Consolidated Financial Statements
RECYCLING INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
Six Months Ended March 31, 1997 and 1996
(Thousands of dollars except per share amounts)
March 31, 1997 March 31, 1996
--------------- ---------------
Net sales $ 23,502 $ 10,763
Cost of sales and operating expenses 19,813 9,352
------------ ------------
Gross profit 3,689 1,411
Selling, general and administrative expenses 2,663 1,553
------------ ------------
Operating income (loss) 1,026 (142)
------------ ------------
Other income (expense):
Interest expense (889) (245)
Miscellaneous 34 -
------------ ------------
Total other income (expense) (855) (245)
------------ ------------
Earnings (loss) before income taxes and
extraordinary gain 171 (387)
Extraordinary gain from settlement of debt - 48
------------ ------------
Earnings (loss) before income taxes 171 (339)
Income tax benefit 295 437
------------ ------------
Net earnings $ 466 $ 98
------------ ------------
------------ ------------
Net earnings available to common
shareholders $ 186 $ 98
------------ ------------
------------ ------------
Earnings per common share:
Net earnings before extraordinary item $ 0.01 $ 0.01
Extraordinary item - -
------------ ------------
Earnings per common share $ 0.01 $ 0.01
------------ ------------
------------ ------------
Weighted average shares outstanding 14,356,000 9,774,000
------------ ------------
------------ ------------
See Accompanying Notes To The Consolidated Financial Statements
RECYCLING INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
SIX MONTHS ENDED MARCH 31, 1997
(Thousands of Dollars)
<TABLE>
Additional
Preferred Stock Common Stock Paid-in Accumulated
Shares Amount Shares Amount Capital (Deficit) Total
----------------- ----------------- --------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Balances, September 30, 1996 - $ - 13,430,793 $ 13 $ 25,547 $ (11,397) $ 14,163
Preferred stock Series C issued
for cash net of offerings
costs of $93 10,000 907 - - - - 907
Common stock issued on exercise or
conversion of Series I warrants - - 125,000 - 19 - 19
Net earnings for the period - - - - - 466 466
------- -------- ---------- ------- --------- ----------- ---------
Balances, March 31, 1997 10,000 $ 907 13,555,793 $ 13 $ 25,566 $ (10,931) $ 15,555
------- -------- ---------- ------- --------- ------------- ---------
------- -------- ---------- ------- --------- ------------- ---------
</TABLE>
RECYCLING INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended March 31, 1997 and 1996
(Thousands of Dollars)
March 31, March 31,
1997 1996
--------------- ---------------
Operating Activities:
Net Earnings $ 466 $ 98
Adjustments to reconcile net earnings
to net cash (used in) operating
activities:
Depreciation and amortization 1,082 479
Extraordinary gain from
settlement of debts (48)
Deferred income taxes (295) (441)
Changes in Assets and Liabilities:
Accounts receivable (1,209) (1,123)
Inventories 17 (213)
Prepaid expenses and deposits 56 (307)
Accounts payable 15 647
Current liabilities, excluding debt (246) 160
---------- ----------
Net Cash (used in)
Operating Activities (114) (748)
---------- ---------
Investing Activities:
Capital expenditures, net (755) (302)
Note receivable, related party (70) 128
Other assets (537) (804)
---------- ---------
Net Cash (used in)
Investing Activities (1,362) (978)
---------- ---------
Financing Activities:
Proceeds from borrowings 5,348 5,547
Principal payments on borrowings (5,721) (4,918)
Deferred offering costs (93) (125)
Proceeds from issuance of stock 1,019 2,278
---------- ---------
Net Cash Provided by
Financing Activities 553 2,782
---------- ---------
Increase (decrease) in Cash (923) 1,056
CASH, beginning of period 1,450 184
---------- ---------
CASH, end of period $ 527 $ 1,240
---------- ---------
---------- ---------
See Accompanying Notes To The Consolidated Financial Statements
RECYCLING INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
General Information
- -------------------
I. The Financial Statements included herein have been prepared by the
Company without audit except the September 30, 1996 balance sheet, which
was audited. The Statements have been prepared pursuant to the rules and
regulations of the Securities and Exchange Commission and reflect all
adjustments, consisting of only normal recurring accruals which are, in
the opinion of management, necessary for a fair statement of the results
of operations for the periods shown. These Financial Statements should
be read in conjunction with the Financial Statements and notes thereto
included in the Company's latest report on Form 10-K, dated September 30,
1996.
II. The results of operations for the six months ending March 31, 1997 and
1996 are not necessarily indicative of the results to be expected for the
full year.
III. Inventories as of March 31, 1997 and September 30, 1996, consisted of the
following:
March 31, 1997 September 30, 1996
-------------- ------------------
Raw materials $ 1,132 $ 1,302
Finished goods 1,246 1,171
Other 78 -
----------- -----------
Total $ 2,456 $ 2,473
----------- -----------
----------- -----------
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The following discussion should be read in conjunction with the Company's
Consolidated Financial Statements and the notes thereto included elsewhere
herein. Statements included on the following discussion concerning
predictions of economic performance and management's plans and objectives are
forward looking statements. These statements involve risks and uncertainties
that could cause actual results to differ materially from the forward looking
statements. Factors which would cause or contribute to such differences
include, but are not limited to, factors detailed in the Company's
Registration Statement on Form S-1 on file with the Commission, Commission
File No. 333-20289; particularly the "Risk Factors" section; downturns in the
Company's primary markets; disruptions to the Company's operations from acts
of God or extended maintenance; disruptions in the availability or pricing of
raw materials; transportation difficulties; and the unavailability of
financing to complete management's plans and objectives.
LIQUIDITY AND CAPITAL RESOURCES
- ------------------------------------------------------------------------------
March 31, September 30,
(Dollars in millions) 1997 1996
- ------------------------------------------------------------------------------
Current ratio 1.27:1 1.22:1
Working capital $ 2.0 $ 1.6
- ------------------------------------------------------------------------------
Cash used by operating activities for the six months ending March 31, 1997
was $0.1 million compared to $0.7 million for the same period one year
earlier. The improvement in cash from operating activities was primarily
related to net earnings. During the six months ending March 31, 1997,
accounts receivable increased as a result of increased sales volume resulting
from increased demand for ferrous materials.
The Company invested $0.8 million in property, plant and equipment through
March 31, 1997 for general modernization and efficiency upgrades. Planned
capital expenditures during the next year for the Company's existing
facilities are estimated to be $1.5 million. Included in this amount are
capital expenditures for the Company's shredders and materials handling
equipment designed to increase capacity and improve operating efficiencies.
Management anticipates the capital expenditures will be paid with cash from
operations and long-term debt financing.
Subsequent to the end of the second quarter, the Company acquired for $5.7
million substantially all the assets of Addlestone Recycling Corporation (ARC)
located in Metter, Georgia. The purchase price consisted of $5.2 million
payable at closing from long-term debt and $.5 million or 10,000 shares of the
Company's Series D Convertible Preferred Stock (the "Series D Shares") also
delivered at closing. The Series D Shares will automatically convert on April
1, 1999 into the number of shares of the Company's common stock whose average
market price for the ten trading days preceding the date of conversion is
equivalent to $0.5 million plus the amount of all accrued and unpaid dividends
on the Series D Shares to the date of conversion. If a consolidation or
merger of the Company with or into another company or entity occurs and the
Company is not the surviving entity, the Series D Shares will convert
immediately into the number of shares the Company's common stock whose average
market price for the ten trading days preceding the date of consolidation or
merger is equivalent to $0.5 million plus the amount of all accrued and unpaid
dividends on the Series D Shares to the date of conversion. Holders of the
Series D Shares are entitled to dividends on a cumulative basis at an annual
rate of eight percent, payable quarterly in cash. At anytime prior to
April 1, 1999, the Company shall have the right to redeem the outstanding
shares of Series D Preferred Stock, in whole or in part, at a cash redemption
price equal to the sum of $50 per share, and the amount of all accrued but
unpaid dividends on the Series D Preferred Stock. The Company has not assumed
or guaranteed any of the liabilities of ARC.
Subject to completion of definitive documentation, the Company intends to
purchase substantially all the assets of Addlestone International Corporation
(AIC) a metals recycling facility located in Georgetown, South Carolina.
At March 31, 1997 and September 30, 1996, the Company has $10.2 million and
$8.4 million, respectively, outstanding under a three year credit facility
with a lending institution totaling $12.5 million.
Subsequent to the end of the second quarter, the Company entered into a $20
million credit facility with a lending institution replacing the previously
maintained credit facility. The facility has maturity terms ranging from six
months to three years. Utilization of the credit facility is limited by
existing debt covenants.
On December 31, 1996, the Company completed a private placement of $1.0
million of Series C Convertible Preferred Stock (Series C Preferred). Net
proceeds to the Company were $907,000. Each Series C Preferred is
convertible at a discount, without further payment, into the number of shares
of Common Stock determined by dividing ( I ) the sum of a (a) $100 plus (b)
the amount of all accrued dividends on the Series C Preferred by (ii) the
lessor of $1.58125 or 73% of the average reported closing bid price of a
share of Common Stock for the five consecutive trading days immediately
preceding the date of conversion. The discount provision is recognized as an
imputed deemed dividend in the amount of $0.4 million reducing income
available to common shareholders on a pro rata basis from the date of issuance
to the first conversion date that conversion can occur. The funds from
issuing the Series C Preferred were used for general working capital
requirements.
Subsequent to the end of the quarter, Recycling Industries, Inc. gave notice
of it's intention to repurchase by May 30, 1997, all of its' outstanding
Series C Preferred for $1.3 million. The Company will use a combination of
existing cash and financing to fund the repurchase of the Series C Preferred.
Subsequent to March 31, 1997, the Board of Directors of Recycling Industries,
Inc. authorized the repurchase of up to 700,000 shares of common stock in open
market transactions. The Company expects to fund the repurchase of common
stock with cash from operations.
The Company is required to implement Financial Accounting Standards Board
Statement No. 128, "Earnings per Share," in fiscal year 1998. Application
of the new rules would not have a significant impact upon the financial
statements of the Company for the three and six months ending March 31, 1997.
Management intends to continue seeking opportunities for expansion in the
metals recycling business and believes that the Company's liquidity, capital
resources and borrowing capabilities are adequate for its current operations.
The Company may, however, need to raise additional capital to fund the
acquisition and integration of additional metals recycling businesses which is
an integral component of the Company's strategy. The Company may raise such
funds through warrant exercises, bank financing or public or private offerings
of its securities. There can be no assurance that the Company will be able to
secure such additional financing. If the Company is not successful in securing
such financing, the Company's ability to pursue its acquisition strategy may
be impaired and the results of operations for future periods may be adversely
affected.
RESULTS OF OPERATIONS
The Company's operating results depend in large part on its ability to
effectively manage the purchase, processing and sale of scrap metals. The
demand for processed ferrous and non-ferrous scrap is subject to general
economic, industry and market-specific conditions beyond the Company's
control which may result in periodic fluctuations in the sales prices of the
Company's products. The Company seeks to maintain its operating margins by
adjusting the purchase price for raw ferrous and non-ferrous scrap in
response to such fluctuations, subject to local market conditions. Although
the Company is unable to hedge against changes in market prices, it seeks to
minimize this risk by maintaining low inventory levels of raw and processed
scrap.
Net sales for the three and six months ending March 31, 1997 were $12.7
million and $23.5 million, respectively. This is an increase of $5.4
million and $12.7 million, respectively, compared to the same periods one year
earlier. The increase in sales is primarily related to the acquisition of
Mid-America, Weissman and Anglo. The average sales price per ton of prepared
ferrous scrap increased by six percent and three percent for the three and six
months ending March 31, 1997, respectively, compared to the same periods one
year earlier. The increase in the average selling price is primarily
attributable to increased demand for ferrous materials.
Gross profit for the quarter and year-to-date was $2.4 million and
$3.7 million, respectively. This is an increase of $1 million and
$2.3 million, respectively, compared to the same periods one year earlier.
The increase resulted primarily from the acquisition of Mid-America, Weissman
and Anglo.
Operating income for the quarter and year-to-date increased by $0.4 million
and $1.2 million, respectively, compared to the same periods one year earlier.
The increase resulted primarily from acquisitions of Mid-America, Weissman
and Anglo.
Selling, general and administrative (SG&A) expenses for the quarter and year-
to-date totaled $1.5 million and $2.7 million, respectively. S,G&A increased
by $0.7 million and $1.1 million for the quarter and year-to-date,
respectively, compared to the same periods one year earlier. The increase was
primarily the result of acquiring Mid-America, Weissman and Anglo.
Interest expense increased for the quarter and year-to-date by $0.3 million
and $0.6 million, respectively, compared to the same periods one year earlier.
The increase was primarily related to increases in long-term debt to finance
the acquisition of Mid-America, Weissman and Anglo.
During the quarter, the Company recorded a $0.3 million income tax benefit as
a result of utilizing a net operating loss carryforward to offset anticipated
taxable income. Remaining net operating loss carry-overs available through
the year 2011 are approximately $9.3 million.
Net earnings available to common shareholders for the three and six months
ending March 31, 1997 was reduced in computing earnings per common share by an
imputed deemed dividend in the amount of $0.3 million or $0.02 per common
share. The imputed deemed dividend resulted from a discount provision
included in the Series C Preferred issued on December 31, 1996.
The Company does not believe its businesses have been adversely affected by
general inflation.
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
- ----------------------------------------
(a) Exhibits
Number Description
------ -----------
11 Statement regarding computation of per share earnings.
27 Financial data schedule (electronic version only)
(b) Reports on form 8-K. Recycling Industries, Inc. has not filed any
reports on Form 8-K during the three months ending March 31, 1997.
SIGNATURES
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.
Date: May 14, 1997
Recycling Industries, Inc.
By: /s/ Thomas J. Wiens
---------------------------------------------
Thomas J. Wiens, Chairman & Chief Executive Officer
By: /s/ Brian L. Klemsz
---------------------------------------------
Brian L. Klemsz, Principal Financial Officer
EXHIBIT 11
RECYCLING INDUSTRIES, INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER COMMON SHARE
(Thousands of dollars except per share amounts)
<TABLE>
Three Months Ended Six Months Ended
March 31, March 31,
---------------------------- ----------------------------
1997 1996 1997 1996
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Primary earnings
Net earnings $ 821 $ 466 $ 466 $ 98
Imputed deemed dividend on Series C Preferred (280) - (280) -
------------- ------------- ------------- -------------
Net earning available to common shareholders $ 541 $ 466 $ 186 $ 98
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Shares
Weighted average number of
common shares outstanding 13,879,000 10,341,000 13,825,000 9,774,000
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Primary earnings per common share $ 0.04 0.05 $ 0.01 0.01
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Fully diluted earnings
Net earnings $ 821 $ 466 $ 466 $ 98
Imputed deemed dividend on Series C Preferred (280) - (280) -
------------- ------------- ------------- -------------
Net earning available to common shareholders $ 541 $ 466 $ 186 $ 98
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Shares
Weighted average number of
common shares outstanding 13,879,000 10,341,000 13,825,000 9,774,000
Assuming exercise or conversion
of warrants and options 102,000 - 102,000 -
Assuming conversion of convertible
preferred stock 866,000 - 429,000 -
Weighted average number of common
shares outstanding as adjusted 14,847,000 10,341,000 14,356,000 9,774,000
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Fully diluted earnings per common share $ 0.04 0.05 $ 0.01 0.01
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE SEOND
QUARTER 10-Q FILING AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000769879
<NAME> RECYCLING INDUSTRIES, INC.
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-END> MAR-31-1997
<CASH> 527
<SECURITIES> 0
<RECEIVABLES> 5694
<ALLOWANCES> 20
<INVENTORY> 2456
<CURRENT-ASSETS> 9502
<PP&E> 22873
<DEPRECIATION> 2418
<TOTAL-ASSETS> 35582
<CURRENT-LIABILITIES> 7485
<BONDS> 0
0
907
<COMMON> 13
<OTHER-SE> 14635
<TOTAL-LIABILITY-AND-EQUITY> 35582
<SALES> 23502
<TOTAL-REVENUES> 23502
<CGS> 19813
<TOTAL-COSTS> 19813
<OTHER-EXPENSES> 2663
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 889
<INCOME-PRETAX> 171
<INCOME-TAX> (295)
<INCOME-CONTINUING> 466
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 466
<EPS-PRIMARY> .01
<EPS-DILUTED> .01
</TABLE>
