<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended July 4, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period _____________ to _______________
Commission file number: 0-14275
Edac Technologies Corporation
(Exact name of registrant as specified in its charter)
Wisconsin 39-1515599
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) Identification No.)
1806 New Britain Avenue, Farmington, CT 06032
(Address of principal executive offices)
(860) 677-2603
(Registrant's telephone number, including area code)
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. Yes X No ____
APPLICABLE ONLY TO CORPORATE ISSUERS:
On August 14, 1998 there were outstanding 4,259,380 shares of the
Registrant's Common Stock, $0.0025 par value per share.
<PAGE> 2
PART 1 FINANCIAL INFORMATION
ITEM 1 FINANCIAL STATEMENTS
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
For the quarter ended Six months ended
----------------------- ------------------
July 4 June 30 July 4 June 30
1998 1997 1998 1997
------------ ------------ --------- ----------
<S> <C> <C> <C> <C>
Sales $10,625,889 $ 9,297,395 $23,332,014 $18,851,721
Cost of sales 8,254,242 8,158,150 18,650,179 16,607,196
----------- ----------- ---------- -----------
2,371,647 1,139,245 4,681,835 2,244,525
Selling, general and
and administrative
expenses 1,147,081 707,178 2,262,442 1,370,652
---------- ----------- ---------- -----------
INCOME FROM OPERATIONS 1,224,566 432,067 2,419,393 873,873
Non-operating income
(expense):
Interest expense (277,306) (169,868) (504,351) (375,643)
Other 18,709 219 28,613 20,149
--------- ----------- -------- ----------
(258,597) (169,649) (475,738) (355,494)
INCOME BEFORE
INCOME TAXES 965,969 262,418 1,943,655 518,379
Provision for
income taxes 309,000 0 621,000 0
----------- ----------- --------- ---------
NET INCOME $ 656,969 $ 262,418 $1,322,655 $ 518,379
=========== ============= ========== ==========
Basic earnings per
common share $ 0.16 $ 0.06 $ 0.31 $ 0.12
=========== ============ ============ =========
Diluted earnings per
common share $ 0.15 $ 0.06 $ 0.29 $ 0.12
=========== ============ ============ =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE> 3
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
July 4 December 31
1998 1997
(Unaudited) (Note)
------------- --------------
ASSETS
CURRENT ASSETS:
Cash $ 16,121 $ 137,620
Trade accounts receivable 7,402,419 3,903,329
Inventories 11,792,704 10,186,211
Prepaid expenses and other 618,704 44,138
Deferred income taxes 924,469 924,469
------------ ------------
TOTAL CURRENT ASSETS 20,754,417 15,195,767
PROPERTY, PLANT, AND EQUIPMENT 26,721,888 15,229,285
less-accumulated depreciation 8,147,473 7,644,959
------------ ------------
18,574,415 7,584,326
OTHER ASSETS
Cost in excess of net assets
Of business acquired 10,614,294 -
Other 1,387,704 1,069,483
------------ ------------
TOTAL OTHER ASSETS 12,001,998 1,069,483
------------ ------------
$ 51,330,830 $ 23,849,576
============ ============
Note: The balance sheet at December 31, 1997 has been derived from the audited
financial statements at that date.
The accompanying notes are an integral part of these financial statements.
<PAGE> 4
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
July 4 December 31
1998 1997
(Unaudited) (Note)
------------ -------------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Revolving line of credit $ 7,803,710 $ 4,107,482
Current portion of long-term debt 1,396,206 1,018,928
Trade accounts payable 4,390,043 3,342,721
Employee compensation and
amounts withheld 1,541,313 1,380,272
Customer deposits 595,891 -
Accrued expenses 1,729,871 845,528
------------ ------------
TOTAL CURRENT LIABILITIES 17,457,034 10,694,931
LONG-TERM DEBT,
less current portion 24,667,835 5,368,882
OTHER LIABILITIES 9,000 9,000
DEFERRED INCOME TAXES 891,000 891,000
COMMITMENTS AND CONTINGENT
LIABILITIES (NOTE B)
SHAREHOLDERS' EQUITY:
Common stock, par value $.0025 per
share; 10,000,000 shares authorized;
issued and outstanding--4,259,380
in 1998 and 3,834,550 in 1997 10,648 9,586
Additional paid-in-capital 8,826,096 8,768,504
Retained earnings(deficit) 27,445 (1,295,210)
------------ ------------
8,864,189 7,482,880
Less deferred ESOP compensation
expense (77,778) (116,667)
Less unfunded accrued pension costs (480,450) (480,450)
------------ ------------
8,305,961 6,885,763
$ 51,330,830 $ 23,849,576
============ ============
Note: The balance sheet at December 31, 1997 has been derived from the audited
financial statements at that date.
The accompanying notes are an integral part of these financial statements.
<PAGE> 5
EDAC TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Six Months Ended
------------------
July 4 June 30
------------ ------------
1998 1997
------------ ------------
Operating Activities:
Net income $1,322,655 $ 518,379
Depreciation and amortization 644,135 485,135
Changes in working capital items (167,846) (118,322)
Other (19,737) (13,723)
---------- ----------
Net cash provided by
operating activities 1,779,207 871,469
Investing Activities:
Additions to property, plant
and equipment (5,294,257) (783,484)
Proceeds from sales of property
plant and equipment 39,605 6,441
Acquisition of
Apex Machine Tool Co. (19,853,700) -
Other 433,880 (141,814)
---------- ----------
Net cash used in investing
activities (24,674,472) (918,857)
Financing Activities:
Increase (decrease) in revolving
line of credit 3,696,228 133,394
Payment of equipment lines - (541,153)
Issuance of long term debt 20,955,772 541,153
Payments of long term debt (1,279,541) (240,777)
Financing fees (657,347) -
Proceeds from exercise of options
for common stock 58,654 28,125
---------- ----------
Net cash provided by (used in)
financing activities 22,773,766 (79,258)
Decrease in cash (121,499) (126,646)
Cash at the beginning of year 137,620 195,382
---------- ----------
Cash at end of period $ 16,121 $ 68,736
========== ==========
The accompanying notes are an integral part of these financial statements.
<PAGE> 6
EDAC TECHNOLOGIES CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
JULY 4, 1998
NOTE A -- BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements have been prepared
in accordance with the generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Rule 10-01 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals and adjustments to previously established loss
provisions) considered necessary for a fair presentation have been included.
Operating results for the six month period ending July 4, 1998 are not
necessarily indicative of the results that may be expected for the year ending
January 2, 1999. For further information, refer to the financial statements and
footnotes thereto included in the Company's annual report on Form 10-K for the
year ended December 31, 1997.
The Company has changed its quarter end dates beginning with the first quarter
of 1998. Quarter end dates for 1998 are April 4, 1998, July 4, 1998, October 3,
1998 and January 2, 1999. This change did not result in a material difference
for the three or six month periods ended July 4, 1998.
New Accounting Standard: In June 1997, the Financial Accounting Standards Board
issued SFAS No. 130, "Reporting Comprehensive Income". This statement
established standards for separately reporting comprehensive income and its
components (revenues, expenses, gains and losses) in a full set of general
purpose financial statements. Components of comprehensive income represent
changes in equity resulting from transactions and other events and circumstances
from nonowner sources. The Company adopted the standard on January 1, 1998. The
adoption of this standard did not require any additional disclosure for the
three or six month periods ended July 4, 1998.
Earnings per Share: On July 1, 1998 the Company paid a ten percent stock
dividend to all shareholders of record as of June 16, 1998. In accordance with
SFAS No.128, "Earnings Per Share", earnings per share calculations for prior
periods presented on the accompanying financial statements and on Exhibit 11
have been restated based on the new number of shares.
NOTE B -- ACQUISITION OF APEX MACHINE TOOL COMPANY, INC.
On June 29, 1998, the Company completed its acquisition of the net assets of
Apex Machine Tool Company, Inc.(Apex). In addition, the Company purchased two
buildings from certain shareholders of Apex. This transaction was accounted for
as an asset purchase; accordingly the purchase price was allocated to assets
acquired based upon their estimated fair market value at the date of acquisition
as follows:
<PAGE> 7
Accounts receivable 2,735,406
Inventories 1,480,152
Receivable from former
Apex shareholders 470,922
Prepaid expense and other 31,311
Property plant & equipment 6,315,700
Covenant not to compete 100,000
Cost in excess of net assets
of business acquired 10,614,294
Accounts payable and
Accrued expenses (1,894,085)
------------
Total purchase price 19,853,700
The receivable from the former shareholders of Apex represents the adjustment to
the purchase price for the difference in adjusted net book value of Apex Machine
Tool Company from November 30, 1997 to June 29, 1998. A contingent purchase
option was also executed calling for the purchase of 55 Spring Lane in
Farmington, CT for $1,135,600 which was not closed as of July 4, 1998. The
acquisition was principally funded through borrowings under the Company's
revolving credit facility and borrowing under a $14,000,000 term promissory note
with the Company's principal lender due as follows: (a) monthly principal
payments of $83,333 commencing July 1, 1999 and continuing through June 1, 2002,
(b) monthly payments of $250,000 commencing on July 1, 2002 and continuing
through June 1, 2003 and (c) monthly payments of $333,333 commencing July 1,
2003 and continuing through June 1, 2005. Interest is charged monthly at LIBOR
plus 1 1/2. The seller also provided a seller note totaling $2,710,687 relating
to the purchase of the two buildings used in the operation of Apex. This note
requires interest at the rate of 10.12% and is payable on January 1, 2000.
Proforma financial statements relating to the acquisition of Apex will be filed
with the Securities and Exchange Commission by September 14, 1998 under the Form
8K/A.
<PAGE> 8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Sales. The Company's sales increased $1,328,494 or 14.3% for the three months
and $4,480,293 or 23.8% for the six months ended July 4, 1998 compared to the
comparable periods of 1997. These increases are mainly due to increased sales in
the Large Turning and Precision Engineered Solutions areas.
Cost of Sales. Cost of sales as a percent of sales decreased by 10.0% of sales
for the three months and by 8.2% for the six month periods ended July 4, 1998
compared to the comparable periods of 1997. This was achieved by increased sales
in the higher margin divisions and the spreading of fixed overhead over higher
production levels. Margins in all divisions were enhanced by continuous
improvement techniques such as Kaizen, Lean Thinking, pull systems and Just in
Time.
Selling, General & Administrative. Selling, general and administrative costs
increased $439,903 for the three months and $891,790 for the six months ended
July 4, 1998 compared to the comparable periods of 1997. The increase is due to
increased personnel related expenses, selling expenses, professional expenses
and advertising and promotional expenses.
Interest. Interest expense increased $107,438 or 63.2% for the three months and
$128,708 or 34.3% for the six months ended July 4, 1998. This was due to higher
outstanding bank debt used to acquire new machinery.
Liquidity and Capital Expenditures. Working capital as of July 4, 1998 has
decreased by $1,203,453 since December 31, 1997. Capital expenditures of
$5,294,257 have been funded by the Company's bank and an equipment financing
company.
The Apex acquisition was principally funded through borrowings under the
Company's revolving credit facility and borrowing under a $14,000,000 term
promissory note with the Company's principal lender due as follows: (a) monthly
principal payments of $83,333 commencing July 1, 1999 and continuing through
June 1, 2002, (b) monthly payments of $250,000 commencing on July 1, 2002 and
continuing through June 1, 2003 and (c) monthly payments of $333,333 commencing
July 1, 2003 and continuing through June 1, 2005. Interest is charged monthly at
LIBOR plus 1 1/2. The seller also provided a seller note totaling $2,710,687
relating to the purchase of the two buildings used in the operation of Apex.
This note requires interest at the rate of 10.12% and is payable on January 1,
2000.
Management believes that the funds generated from operations and its credit
facilities will be sufficient to meet the Company's cash requirements for 1998.
Certain matters described in this report are forward-looking statements and are
subject to risks and uncertainties that could cause actual results to differ
materially from those projected.
<PAGE> 9
PART 11 -- OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
11 Statement re: computation of earnings per share
27 Financial Data Schedule
(b) Reports on Form 8-K
Current Report dated June 30, 1998
<PAGE> 10
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.
EDAC TECHNOLOGIES CORPORATION
August 17, 1998 By /s/ Ronald G. Popolizio
---------------------------------
Ronald G. Popolizio, Chief Financial
Officer and duly authorized officer
<PAGE> 11
EXHIBIT INDEX
<TABLE>
<CAPTION>
Page Number
in Sequential
NUMBER DESCRIPTION Numbering System
- ------ ----------- ----------------
<S> <C> <C>
11 Statement Regarding Computation of
Per Share Earnings
27.1 Financial Data Schedule
27.2 Financial Data Schedule
99.1 Asset Purchase Agreement dated as of May 13, 1998 by (1)
and among Edac Technologies Corporation, Apex Acquisition Corp.,
Apex Machine Tool Company, Inc., Gerald S. Biondi, James G Biondi
and Michael Biondi.
99.2 Purchase Agreement dated as of May 13, 1998 by and (1)
between Edac Technologies Corporation, Gerald S. Biondi, James G.
Biondi and Michael Biondi providing for the acquisition of the real
estate located at 17 and 21 Spring Lane, Farmington, Connecticut.
99.3 Guaranty Agreement dated as of June 30, 1998 by and (1)
among Edac Technologies Corporation, as guarantor, Apex Acquisition
Corporation, Gerald S. Biondi, James G. Biondi and Michael Biondi
pursuant to which Edac Technologies Corporation has guaranteed all
of the Obligations of Apex Acquisition Corporation under the real
estate purchase agreement.
99.4 Promissory note payable by Apex Acquisition Corporation to (1)
Gerald S. Biondi, James G. Biondi and Michael Biondi under the real
estate purchase Agreement.
99.5 Purchase agreement dated as of May 13, 1998 by and (1)
Between Edac Technologies Corporation, Gerald S.
Biondi and James G. Biondi providing for the
Acquisition, after the satisfaction of certain
Pre-closing conditions, by Edac Technologies
Corporation or its wholly owned subsidiary of the
property located at 55 Spring Lane, Farmington,
Connecticut.
99.6 Eleventh Amendment to Loans and Security Agreement, (1)
Modification of Notes and Reaffirmation of Guaranties
Dated as of June 30, 1998 by and among Fleet National
Bank, Edac Technologies Corporation, Gros-Ite
Industries, Inc. and Apex Acquisition Corporation.
99.7 Second Amended and Restated Promissory note dated as of June 30,
1998 in the original principal amount of $13 million payable by Edac
Technologies Corporation to Fleet National Bank.
</TABLE>
<PAGE> 12
<TABLE>
<CAPTION>
<S> <C> <C>
99.8 Term Promissory Note dated June 30, 1998 in the (1)
principal amount of $14 million payable by Edac
Technologies Corporation to Fleet National Bank.
99.9 Fourth Modification of Construction to Permanent Loan (1)
Promissory Note and Open-End Construction to Permanent Mortgage Deed
dated as of June 30, 1998 by and among Edac Technologies Corporation
and Fleet National Bank.
99.10 Ninth Modification Agreement to Open-End Mortgage Deed dated as (1)
of June 30, 1998 by and between Edac Technologies Corporation and
Fleet National Bank.
99.11 Guaranty Agreement dated as of June 30, 1998 from each (1)
of Apex Acquisition Corporation and Gros-Ite Industries,
Inc. to Fleet National Bank.
99.12 Open-End Mortgage Deed, Security Agreement, Collateral (1)
Assignment of Rents and Financing Statement dated as of June 30,
1998 by and between Edac Technologies Corporation and Fleet National
Bank.
99.13 Security Agreement dated as of June 30, 1998 by and (1)
Between Apex Acquisition Corporation and Fleet National
Bank.
99.14 Hazardous Substances and Indemnity Agreement dated as of (1)
June 30, 1998 by and among Edac Technologies
Corporation, Apex Acquisition Corporation, Gros-Ite
Industries, Inc. and Fleet National Bank.
</TABLE>
(1) Exhibit incorporated by reference to the Company's current report on Form
8-K dated June 30, 1998.
<PAGE> 1
(11)--STATEMENT RE: COMPUTATION OF EARNINGS PER SHARE
EDAC TECHNOLOGIES CORPORATION
<TABLE>
<CAPTION>
Three months ended Six months ended
------------------------- ------------------------
July 4 June 30 July 4 June 30
1998 1997 1998 1997
---------- ------------- ---------- ------------
<S> <C> <C> <C> <C>
Basic:
Weighted average
shares outstanding (A) 4,233,845 4,175,096 4,225,925 4,156,763
Net income $ 656,969 $ 262,418 $1,322,655 $ 518,379
========== =========== ========== ==========
Basic earnings
per common share $ 0.16 $ 0.06 $ 0.31 $ 0.12
=========== =========== ========= ==========
Diluted:
Weighted average
shares outstanding (A) 4,233,845 4,175,096 4,225,925 4,156,763
Net effect of dilutive
stock options based on
the treasury stock method
using average market price 296,028 230,856 286,042 212,212
---------- ---------- --------- ----------
Totals 4,529,873 4,405,952 4,511,967 4,368,975
========= ========== ========= ==========
Net income $ 656,969 $ 262,418 $1,322,655 $ 518,379
========== ========== ========== ==========
Diluted earnings
per common share $ 0.15 $ 0.06 $ 0.29 $ 0.12
=========== =========== ========== ==========
</TABLE>
(A) Retroactively restated for the effect of the 10% stock dividend paid on July
1, 1998 to holders of record on June 16, 1998.
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JAN-2-1999
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUL-04-1998
<CASH> 16,121
<SECURITIES> 0
<RECEIVABLES> 7,402,419
<ALLOWANCES> 184,532
<INVENTORY> 11,792,704
<CURRENT-ASSETS> 20,754,417
<PP&E> 26,721,888
<DEPRECIATION> 8,147,473
<TOTAL-ASSETS> 51,330,830
<CURRENT-LIABILITIES> 17,457,034
<BONDS> 24,667,835
0
0
<COMMON> 10,648
<OTHER-SE> 8,295,313
<TOTAL-LIABILITY-AND-EQUITY> 51,330,830
<SALES> 23,332,014
<TOTAL-REVENUES> 23,332,014
<CGS> 18,650,179
<TOTAL-COSTS> 20,912,621
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 62,502
<INTEREST-EXPENSE> 504,351
<INCOME-PRETAX> 1,943,655
<INCOME-TAX> 621,000
<INCOME-CONTINUING> 1,322,655
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,322,655
<EPS-PRIMARY> .31
<EPS-DILUTED> .29
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<RESTATED>
<S> <C> <C> <C> <C>
<PERIOD-TYPE> 3-MOS YEAR 9-MOS 6-MOS
<FISCAL-YEAR-END> JAN-02-1999 DEC-31-1997 DEC-31-1997 DEC-31-1997
<PERIOD-START> JAN-01-1998 JAN-01-1997 JAN-01-1997 JAN-01-1997
<PERIOD-END> APR-04-1998 DEC-31-1997 SEP-30-1997 JUN-30-1997
<CASH> 98,161 137,620 96,120 68,736
<SECURITIES> 0 0 0 0
<RECEIVABLES> 5,095,819 3,903,329 3,427,903 3,797,100
<ALLOWANCES> 153,281 125,000 96,639 77,733
<INVENTORY> 9,654,678 10,186,211 10,050,166 8,838,166
<CURRENT-ASSETS> 15,879,320 15,195,767 14,489,347 13,597,755
<PP&E> 18,474,051 15,229,285 14,585,655 13,673,848
<DEPRECIATION> 7,911,359 7,644,959 7,511,172 7,864,671
<TOTAL-ASSETS> 27,236,287 23,849,576 22,105,873 19,929,825
<CURRENT-LIABILITIES> 11,510,592 10,694,931 10,019,673 8,963,744
<BONDS> 7,254,801 5,368,882 4,957,018 4,388,489
0 0 0 0
0 0 0 0
<COMMON> 9,586 9,586 9,585 9,510
<OTHER-SE> 7,561,308 6,876,177 6,600,189 6,048,805
<TOTAL-LIABILITY-AND-EQUITY> 27,236,287 23,849,576 22,105,873 19,929,825
<SALES> 12,706,125 38,229,389 28,254,482 18,851,721
<TOTAL-REVENUES> 12,706,125 38,229,389 28,254,482 18,851,721
<CGS> 10,395,937 32,287,962 24,474,966 16,607,196
<TOTAL-COSTS> 11,511,298 35,828,240 27,224,402 18,333,342
<OTHER-EXPENSES> 0 0 0 0
<LOSS-PROVISION> 31,251 47,287 0 0
<INTEREST-EXPENSE> 227,045 765,200 561,608 375,643
<INCOME-PRETAX> 977,686 1,717,148 1,030,080 518,379
<INCOME-TAX> 312,000 21,000 0 0
<INCOME-CONTINUING> 665,686 1,696,148 1,030,080 518,379
<DISCONTINUED> 0 0 0 0
<EXTRAORDINARY> 0 0 0 0
<CHANGES> 0 0 0 0
<NET-INCOME> 665,686 1,696,148 1,030,080 518,379
<EPS-PRIMARY> .16 .41 .25 .12
<EPS-DILUTED> .15 .39 .24 .12
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<RESTATED>
<CURRENCY> US DOLLARS
<S> <C> <C> <C>
<PERIOD-TYPE> 3-MOS 3-MOS YEAR
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1996 DEC-31-1995
<PERIOD-START> JAN-01-1997 JAN-01-1996 JAN-01-1995
<PERIOD-END> MAR-01-1997 MAR-31-1996 DEC-31-1995
<EXCHANGE-RATE> 1 1 1
<CASH> 43,703 75,702 158,077
<SECURITIES> 0 0 0
<RECEIVABLES> 3,386,843 3,094,907 1,650,840
<ALLOWANCES> 77,733 40,000 40,000
<INVENTORY> 8,748,181 10,017,451 11,280,037
<CURRENT-ASSETS> 13,082,712 14,309,043 14,215,151
<PP&E> 13,252,818 12,765,439 12,733,254
<DEPRECIATION> 7,790,808 7,046,612 6,850,794
<TOTAL-ASSETS> 18,936,816 20,280,504 20,352,130
<CURRENT-LIABILITIES> 8,137,416 9,111,123 9,166,482
<BONDS> 4,504,010 4,825,160 4,919,019
0 0 0
0 0 0
<COMMON> 9,447 9,134 9,134
<OTHER-SE> 5,752,943 5,400,087 5,322,495
<TOTAL-LIABILITY-AND-EQUITY> 18,936,816 20,280,504 20,352,130
<SALES> 9,554,326 7,553,532 0
<TOTAL-REVENUES> 9,554,326 8,013,974 24,563,934
<CGS> 8,449,046 7,136,940 22,656,651
<TOTAL-COSTS> 9,112,520 7,136,940 22,656,651
<OTHER-EXPENSES> 0 0 0
<LOSS-PROVISION> 0 0 0
<INTEREST-EXPENSE> 205,775 208,025 618,156
<INCOME-PRETAX> 255,961 58,148 (1,083,219)
<INCOME-TAX> 0 0 0
<INCOME-CONTINUING> 255,961 58,148 (1,083,219)
<DISCONTINUED> 0 0 0
<EXTRAORDINARY> 0 0 0
<CHANGES> 0 0 0
<NET-INCOME> 255,961 58,148 (1,083,219)
<EPS-PRIMARY> .06 .01 (.27)
<EPS-DILUTED> .06 .01 (.27)
</TABLE>
