November 10, 1995
OFIS Filer Support
SEC Operations Center
6842 General Green Way
Alexandria, VA 22312-2413
Dear Sirs:
Pursuant to regulations of the Securities and Exchange
Commission, submitted herewith for filing on behalf of
Family Steak Houses of Florida, Inc., is the Company's
Quarterly Report on Form 10-Q for the fiscal quarter ended
September 27, 1995.
This filing is being effected by direct transmission to the
Commission's EDGAR System.
Very truly yours,
Edward B. Alexander
Secretary/Treasurer
EBA:cs
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the Quarter ended September 27, 1995
Commission File No. 0-14311
FAMILY STEAK HOUSES OF
FLORIDA, INC.
Incorporated under the laws of IRS Employer Identification
Florida No. 59-2597349
2113 FLORIDA BOULEVARD
NEPTUNE BEACH, FLORIDA 32266
Registrant's Telephone No. (904) 249-4197
Indicate by check mark whether the registrant 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_____
Title of each class Number of shares outstanding
Common Stock 10,845,033
$.01 par value As of November 1, 1995
FAMILY STEAK HOUSES OF FLORIDA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 27, 1995
(Unaudited)
Note 1. Basis of Presentation
The accompanying unaudited consolidated financial statements have
been prepared in accordance with generally accepted accounting
principles for interim financial information and the instructions
to Form 10-Q, and do not include all 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)
considered necessary for a fair presentation of the results for
the interim periods have been included. Operating results for
the thirteen and thirty-nine week periods ended September 27,
1995 are not necessarily indicative of the results that may be
expected for the fiscal year ending January 3, 1996. For further
information, refer to the financial statements and footnotes
included in the Company's Annual Report on Form 10-K for the
fiscal year ended December 28, 1994.
The consolidated financial statements include the accounts of the
Company and its wholly-owned subsidiaries. All significant
intercompany profits, transactions and balances have been
eliminated.
Note 2. Earnings Per Share
Earnings per share for the thirteen and thirty-nine weeks ended
September 27, 1995 and September 28, 1994 were computed based on
the weighted average number of common and common equivalent
shares outstanding. Common equivalent shares are represented by
shares under option and stock warrants.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
Quarter Ended September 27, 1995 versus September 28, 1994
The Company experienced a decrease in sales during the third
quarter of 1995 as compared to the same period in 1994 primarily
due to a decline in same store sales. Third quarter sales
decreased 10.5% to $9,816,900 from $10,972,500 for the same
period in 1994. Average sales per restaurant decreased 3.1% in
the third quarter of 1995 from the same period in 1994. Same-
store sales (average unit sales in restaurants that have been
open for at least 18 months and operating during comparable weeks
during the current and prior year) decreased an average of
approximately 5.9%, compared to a 1.1% increase during the third
quarter of 1994. Management believes that the decrease in
comparable store sales is primarily due to the effects of
increasing competition, including several new or remodeled
restaurants opened by competition in areas close to Company
restaurants.
The costs and expenses of the Company's restaurants include
food and beverage, payroll and benefits, depreciation and
amortization, repairs, maintenance, utilities, supplies,
advertising, insurance, property taxes, rents and licenses. The
Company's food, beverage, payroll and benefit costs are believed
to be higher than the industry average as a percentage of sales
as a result of the Company's philosophy of providing customers
with high value of food and service for every dollar a customer
spends. In total, food and beverage, payroll and benefits,
depreciation and amortization and other operating expenses as a
percentage of sales increased to 89.4% in the third quarter of
1995, from 87.4% in the same quarter of 1994, primarily due to
increases in other operating exenses and payroll and benefit
costs as a percentage of sales.
Food and beverage costs as a percentage of sales decreased
to 39.8% in the third quarter of 1995 from 41.1% in the same
period of 1994, primarily due to lower beef costs and sales price
increases implemented in 1994 and 1995.
Payroll and benefits as a percentage of sales increased from
27.0% in the third quarter of 1994 to 28.4% in the same quarter
of 1995, primarily due to increases in compensation to restaurant
managers, and due to reduced hourly labor efficiencies caused by
the decline in same-store sales.
Other operating expenses as a percentage of sales increased
from 14.8% in the third quarter of 1994 to 16.6% in 1995,
primarily due to higher advertising costs and the decline in
same-store sales.
Depreciation and amortization decreased as a percentage of
sales in the second quarter of 1995 compared to 1994, as a result
of certain assets becoming fully depreciated or amortized.
General and administrative expenses as a percentage of sales
increased to 5.9% in the third quarter of 1995, from 5.4% in the
same quarter of 1994, primarily as a result of the fixed nature
of these costs in comparison with the decline in total sales.
Interest and other income increased due to the recognition
of interest income in 1995 from two mortgages, and due to income
from toy vending machines installed in Company restaurants in
1995.
Interest expense decreased from $497,400 during the third
quarter of 1994 to $408,900 in 1995. The decrease was due
primarily to lower outstanding principal balances, resulting from
principal payments made throughout the last twelve months, and
due to a lower interest rate on the Company's obligations to The
Travelers Insurance Company and certain of its affiliates ("The
Travelers Notes").
The effective income tax rates for the quarters ended
September 27, 1995 and September 28, 1994 were 27.1% and (0%),
respectively.
Net earnings for the third quarter of 1995 were $78,200,
compared to a net loss of $29,300 in 1994. Earnings per share
were $.01 for 1995, compared to a loss per share of $.0 in 1994.
Nine Months Ended September 27, 1995 versus September 28, 1994
For the nine months ended September 27, 1995, total sales
decreased 6.8% compared to the same period of 1994, primarily due
to declines in same-store sales and lost revenues from closed
restaurants. Revenues from restaurants closed during 1994
amounted to $1,954,000 for the first three quarters of 1994,
representing a 6.1% decrease in total sales for the nine months
ended September 27, 1995. Same-store sales during the first nine
months of 1995 decreased 1.2%, compared to a decrease of 2.5% in
1994. Average sales per restaurant increased 2.8% for the first
nine months of 1995 from the same period of 1994, due to the
closure of three restaurants with below average sales volumes in
1994.
Food and beverage costs for the nine month period ended
September 27, 1995 was 39.5%, compared to 40.7% for the same
period in 1994, due primarily to lower beef costs and sales price
increases implemented in 1994 and 1995. Payroll and benefits
decreased from 26.9% in 1994 to 26.8% in 1995. The decrease was
primarily due to the closing of restaurants in 1994 which had
experienced high payroll costs as a percentage of sales.
For the nine months ended September 27, 1995, other
operating expenses increased to 15.0% from 13.8% in 1994,
primarily due to increased advertising costs and increased
operating supply costs.
Depreciation and amortization decreased as a percentage of
sales for the nine month period ended September 27, 1995,
compared to the same period of 1994, as a result of certain
assets becoming fully depreciated or amortized.
For the nine months ended September 27, 1995, general and
administrative expenses decreased to 5.6% of sales from 5.8% for
the same period in 1994, primarily due to costs incurred in 1994
associated with the Company's debt restructuring negotiations.
Interest expense decreased for the first nine months of 1995
to $1,273,400 from $1,478,800 for the same period in 1994, due to
reduced principal balances and a lower interest rate on the
Travelers' Notes.
Net earnings for the nine months ended September 27, 1995
were $965,000 or $.08 per share, compared to net losses of
$1,038,700, or $.10 per share for the same period in 1994.
The Company's operations are subject to some seasonal
fluctuations. Revenues per restaurant generally increase from
January through April and decline September through December.
Operating results for the quarter ended September 27, 1995 are
not necessarily indicative of the results that may be expected
for the fiscal year ending January 3, 1996.
The Company's operations for the three months ending
September 27, 1995 experienced decreased same-store sales.
Management intends to increase sales by increasing advertising,
focusing on the value of the Company's product and the Company's
recent remodeling program. However, management anticipates that
it will be difficult to sustain the increases in same store sales
that the Company enjoyed in the last two quarters of 1994 and the
first two quarters of 1995.
In 1993, the Company closed a restaurant and established a
reserve to close two additional restaurants in 1994 (resulting in
a total closed restaurant cost of $2,557,300 in 1993). In April
1994, the Company closed a restaurant in Ft. Pierce, Florida
which had not been included in the 1993 restaurant closing
reserve. The April 1994 restaurant closing resulted in pre-tax
charges to 1994 earnings totaling $816,500, reflecting a
reduction in market value of the property as determined by
appraisal, in addition to costs associated with closing the
restaurant.
During the first fiscal week of 1995, the Company closed and
sold a restaurant not included in the above reserve. The Company
received approximately 20% of the purchase price in cash, and
recorded a mortgage receivable for the balance of the sale. The
gain on this sale was not recognized until the third quarter of
1995 due to uncertainties regarding the ability of the buyer to
open a renovated restaurant at this location. Since the buyer
successfully opened the renovated restaurant in July 1995 and has
made all mortgage payments due to date, the Company recognized
the gain of approximately $152,000 in the third quarter of 1995.
Based on the results of appraisals of Company properties
held for resale, done during the second quarter of 1994, the
Company wrote-down the value of several such properties by a
total of $393,000 in the third quarter of 1994.
Recent Developments
In July 1995 the Company sold its investment in Cross Creek
Barbeque L.C. The Company recognized a gain of approximately
$40,000 on the sale in the third quarter of 1995.
On August 14, 1995, the Company received a notice from The
Travelers Insurance Company that it had sold the Travelers Notes
and certain warrants it holds for purchases of the Company's
common stock (see discussion at Liquidity and Capital Resources
below) to Cerberus Partners, L.P.
Liquidity and Capital Resources
Substantially all of the Company's revenues are derived from
cash sales. Inventories are purchased on credit and are
converted rapidly to cash. Therefore, the Company does not carry
significant receivables or inventories. As a result, working
capital requirements for continuing operations are not
significant.
At September 27, 1995, the Company had a working capital
deficit of $3,281,100, compared to a working capital deficit of
$2,673,300 at December 28, 1994. The increase in the working
capital deficit during the first nine months in 1995 was due
primarily to an increase in the current portion of long-term debt
due in connection with the Company's loan agreements.
Cash provided by operating activities decreased 8.6% to
$2,100,200 in the first nine months of 1995 from $2,297,200 in
the same period of 1994. This decrease is primarily due to
reductions in accrued liabilities as a result of timing
differences in payments.
The Company spent approximately $523,000 in 1992, $1,446,000
in 1993, $1,656,000 in 1994 and $2,204,900 in the first nine
months of 1995 for restaurant renovation and equipment. Capital
expenditures for 1995 and 1996, based on present costs and plans
for expansion, are estimated to be $2,500,000 and $750,000
respectively. The Company projects that cash generated from
operations will be sufficient to fund these improvements.
The reduction in capital expenditures in 1996 reflects the
completion of the Company's recent renovation of many of its
older restaurants. Cash previously used for capital expenditures
will be redirected to meet debt service obligations. As discussed
below, commencing January, 1996, the Company is required to make
an additional $65,000 per month in principal reductions on its
senior debt.
In March 1995, the Company entered into an Amended and
Restated Note Agreement, dated as of February 1, 1995, with The
Travelers Insurance Company and certain of its affiliates ("the
Note Agreement"). The Notes are due May 30, 1998 and provide for
an interest rate of 9.0% with $65,000 monthly in principal
reductions beginning January 1, 1996. As of September 27, 1995,
the outstanding balance due under the Notes was $11,672,800.
The Note Agreement includes detachable Warrants for
purchases of up to 1,750,000 shares of the Company's common stock
at an exercise price of $.40 per share. The Notes are secured by
second mortgages on twenty-two Company restaurant properties.
The Note Agreement provides for various covenants including
prepayment options, the maintenance of prescribed debt service
coverages, limitations on the declaration of cash dividends, sale
of assets, and certain other restrictions.
On August 14, 1995, the Travelers sold the Notes and
Warrants to Cerberus Partners, L.P.. The terms, provisions, and
covenants of the Note Agreement did not change as a result of
this transaction.
Also in March 1995, the Company entered into an Amended and
Restated Loan Agreement with The Daiwa Bank, Limited, and
SouthTrust Bank of Alabama, National Association (the "Bank
Loan") which extends the maturity date of the Bank Loan until May
30, 1998. The Bank Loan bears interest at prime rate plus 0.50%,
with monthly principal payments of $41,250 beginning April 1,
1995 ($67,100 prior to April 1, 1995). The Bank Loan is secured
by first mortgages on twenty-two of the Company's restaurant
properties, and provides for various covenants substantially
consistent with those of the Note Agreement. As of September 27,
1995, the outstanding balance under the Bank Loan was $4,328,000.
Impact of Inflation
Costs of food, beverage, and labor are the expenses most
affected by inflation in the Company's business. Although
inflation has not had a significant impact on the Company in the
past, there can be no assurance that it will not in the future.
A significant portion of the Company's employees are paid at the
federally established statutory minimum wage. Therefore, any
increase in the statutory minimum wage would have an adverse
effect on payroll and benefit costs. At present there are no
statutory minimum wage increases scheduled for 1995. Sales prices
were increased approximately 4% in 1994 and 1% in 1995.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES
See discussion under "Liquidity and Capital Resources"
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) The following exhibits are filed as part of this
report on Form 10-Q, and this list comprises the
Exhibit Index.
No. Exhibit
27.01 Financial Data Schedule.
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.
FAMILY STEAK HOUSES OF FLORIDA, INC.
(Registrant)
/s/ Lewis E. Christman
Date: November 10, 1995 Lewis E. Christman, Jr.
President and CEO
/s/ Edward B. Alexander
Date: November 10, 1995 Edward B. Alexander
Secretary/Treasurer
(Principal Financial and Accounting
Officer)
/s/ Michael J. Walters
Date: November 10, 1995 Michael J. Walters
Controller
Financial Statements
Family Steak House of Florida, Inc.
Consolidated Results of Operations
(Unaudited)
<TABLE>
<CAPTION> For the Quarter ended
---------------------------
September 27, September 28
1995 1994
------------ ------------
<S> <C> <C>
Sales $9,816,900 $10,972,500
Cost and Expenses:
Food and beverage 3,909,600 4,507,600
Payroll and benefits 2,791,900 2,964,600
Depreciation and amortization 440,600 500,200
Other operating expenses 1,633,900 1,618,900
General and administrative 574,900 588,900
Franchise fees 294,500 320,800
Loss on disposition of equipment 45,100 25,000
(Income) from joint venture (40,100) --
(Income) loss from restaurant dispositions (217,900) 13,600
------------ ------------
9,432,500 10,539,600
------------ ------------
Earnings from operations 384,400 432,900
Interest and other income 131,700 35,200
Write-down of property held for resale -- --
Interest expense (408,900) (497,400)
------------ ------------
Income (loss) before income taxes 107,200 (29,300)
Provision for income taxes 29,000 --
------------ ------------
Net income (loss) $78,200 ($29,300)
============ ============
Net income (loss) per common
and equivalent share: $0.01 ($0.00)
============ ============
Weighted average common
and equivalents 11,819,000 10,783,000
============ ============
See accompanying notes to consolidated financial statements.
</TABLE>
Family Steak House of Florida, Inc.
Consolidated Results of Operations
(Unaudited)
<TABLE>
<CAPTION> For the Nine Months ended
---------------------------
September 27, September 28
1995 1994
------------ ------------
<S> <C> <C>
Sales $32,193,200 $34,524,600
Cost and Expenses:
Food and beverage 12,719,800 14,061,000
Payroll and benefits 8,613,200 9,290,600
Depreciation and amortization 1,321,800 1,517,300
Other operating expenses 4,842,100 4,779,700
General and administrative 1,817,600 1,987,500
Franchise fees 965,800 1,254,700
Loss on disposition of equipment 97,100 75,000
Loss from joint venture 5,400 --
(Income) loss from restaurant dispositions (217,900) 816,500
------------ ------------
30,164,900 33,782,300
------------ ------------
Earnings from operations 2,028,300 742,300
Interest and other income 407,800 90,800
Write-down of property held for resale -- (393,000)
Interest expense (1,273,400) (1,478,800)
------------ ------------
Income (loss) before income taxes 1,162,700 (1,038,700)
Provision for income taxes 197,700 --
------------ ------------
Net income (loss) $965,000 ($1,038,700)
============ ============
Net income (loss) per common
and equivalent share: $0.08 ($0.10)
============ ============
Weighted average common
and equivalents 11,568,000 10,783,000
============ ============
See accompanying notes to consolidated financial statements.
</TABLE>
Family Steak House of Florida, Inc.
Consolidated Balance Sheets
(Unaudited)
<TABLE>
<CAPTION> September 27, September 28
1995 1994
------------ ------------
<S> <C> <C>
ASSETS
Current assets:
Cash and equivalents $1,403,400 $1,603,100
Investments 600,300 710,700
Receivables 82,000 104,900
Income taxes receivable -- 332,200
Current portion of notes receivable 152,100 32,500
Inventories 244,900 324,800
Prepaids and other current assets 200,400 475,500
------------ ------------
Total currents assets 2,683,100 3,583,700
Notes receivable 1,290,600 537,500
Property and equipement:
Land 9,342,200 9,677,800
Buildings and improvements 18,799,300 18,726,800
Equipment 11,623,700 11,139,500
------------ ------------
39,765,200 39,544,100
Accumulated depreciation (12,850,000) (12,648,200)
------------ ------------
Net property and equipment 26,915,200 26,895,900
Investment in joint venture -- 100,000
Property held for resale 543,300 1,039,300
Other assets, principally deferred
charges, net of accumulated amortization 590,700 652,200
------------ ------------
$32,022,900 $32,808,600
============ ============
Family Steak House of Florida, Inc.
Consolidated Balance Sheets
(Unaudited)
(Continued)
September 27, September 28
1995 1994
------------ ------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,566,000 $1,462,900
Accrued liabilities 2,922,100 3,942,900
Income taxes payable 91,100 --
Current portion of long-term debt 1,385,000 851,200
------------ ------------
Total Current liabilities 5,964,200 6,257,000
Long-term debt 14,933,000 16,304,800
Deferred revenue 55,200 55,200
Other non-current liabilities -- 198,300
------------ ------------
Total liablities 20,952,400 22,815,300
Shareholders' equity
Preferred stock of $.01 par;
authorized 10,000,000 shares;
none issued -- --
Common stock of $.01 par;
authorized 20,000,000 shares;
Outstanding 10,845,000 in 1995
and 10,725,000 in 1994 108,500 107,300
Additional paid-in-capital 8,113,300 8,002,300
Retained earnings 2,848,700 1,883,700
------------ ------------
Total shareholders' equity 11,070,500 9,993,300
------------ ------------
$32,022,900 $32,808,600
============ ============
See accompanying notes to consolidated financial statements.
</TABLE>
Family Steak House of Florida, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION> For the Nine Months ended
---------------------------
September 27
1995
------------
<S> <C>
Operating activities:
Net earnings (loss) $965,000
Adjustments to reconcile net earnings
to net cash provided by operating activities:
Depreciation and amortization 1,321,800
Director's fees in the form of stock options 30,000
Loss from joint venture 5,400
Income from restaurant dispositions (217,900)
Amortization of loan fees 60,300
Amortization of loan discount 60,800
Loss on disposition of equipment 97,100
Decrease (increase) in:
Receivables (28,900)
Income tax receivable 332,200
Inventories 79,900
Prepaids and other current assets 275,100
Other assets (272,300)
Increase (decrease) in:
Accounts payable 103,100
Income tax payable 91,100
Accrued liabilities (802,500)
------------
Net cash provided by operating activities 2,100,200
------------
Investing activities:
Net proceeds from land held for resale 496,000
Proceeds from sale of restaurant 106,600
Proceeds from notes receivable 60,000
Proceeds from sale of investments 110,400
Proceeds from sale of interest in joint venture 48,600
Capital expenditures (2,204,900)
------------
Net cash used by investing activities (1,383,300)
------------
Financing activities:
Payments on long-term debt (917,800)
Proceeds from the issuance of common stock 1,200
------------
Net cash used by financing activities (916,600)
------------
Net decrease in cash and cash equivalents (199,700)
Cash and cash equivalents - beginning of period 1,603,100
------------
Cash and cash equivalents - end of period 1,403,400
============
Supplemental disclosures of cash flow information:
Cash paid during the period for interest $1,178,600
============
Cash paid during the period for income tax $106,600
============
Non-cash transactions:
Mortgages and notes receivable issued $1,812,000
Warrants issued 81,000
Accrued interest reclassed to long-term debt 100,000
------------
$1,993,000
============
See accompanying notes to consolidated financial statements.
</TABLE>
Family Steak House of Florida, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION> For the Nine Months ended
---------------------------
September 28
1994
------------
<S> <C>
Operating activities:
Net (loss) ($1,038,700)
Adjustments to reconcile net (loss)
to net cash provided by operating activities:
Depreciation and amortization 1,517,300
Director's fees in the form of stock options 25,000
Loss from restaurant disposition 816,500
Write-down of property held for resale 393,000
Amortization of loan fees 74,700
Amortization of loan discount 99,000
Loss on disposition of equipment 75,000
Decrease (increase) in:
Receivables 70,800
Income tax receivable 268,100
Inventories (9,600)
Prepaids and other current assets (368,000)
Other assets (44,500)
Increase (decrease) in:
Accounts payable 102,800
Accrued liabilities 553,200
Other Non-current liabities (237,400)
------------
Net cash provided by operating activities 2,297,200
------------
Investing activities:
Proceeds from sale of land 32,600
Capital expenditures (1,310,800)
------------
Net cash used by investing activities (1,278,200)
------------
Financing activities:
Payments on long-term debt (782,100)
Proceeds from the issuance of common stock 200
------------
Net cash used by financing activities (781,900)
------------
Net increase in cash and cash equivalents 237,100
Cash and cash equivalents - beginning of period 1,513,200
------------
Cash and cash equivalents - end of period $1,750,300
============
Supplemental disclosures of cash flow information:
Cash paid during the period for interest $1,065,200
============
Cash paid during the period for income tax $ --
============
Non-cash transactions:
Equipment from closed restaurants transferred to
other current assets $166,300
Note payable and franchise rights exchanged for
past due franchise fees 1,300,000
------------
$1,466,300
============
See accompanying notes to consolidated financial statements.
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This financial data schedule contains summary financial information extracted
from the company's 1995 3rd quarter 10-q and is qualified in it's entirety
by reference to such financial statements.
</LEGEND>
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 9-MOS
<FISCAL-YEAR-END> JAN-03-1996 JAN-03-1996
<PERIOD-END> SEP-27-1996 SEP-27-1996
<CASH> 1403400 1403400
<SECURITIES> 600300 600300
<RECEIVABLES> 234100 234100
<ALLOWANCES> 0 0
<INVENTORY> 244900 244900
<CURRENT-ASSETS> 2683100 2683100
<PP&E> 39765200 39765200
<DEPRECIATION> (12850000) (12850000)
<TOTAL-ASSETS> 32022900 32022900
<CURRENT-LIABILITIES> 5964200 5964200
<BONDS> 0 0
<COMMON> 8221800 8221800
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 32022900 32022900
<SALES> 9816900 32193200
<TOTAL-REVENUES> 9948600 32601000
<CGS> 3909600 12719800
<TOTAL-COSTS> 9432500 30164900
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 408900 1273400
<INCOME-PRETAX> 107200 1162700
<INCOME-TAX> 29000 197700
<INCOME-CONTINUING> 78200 965000
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 78200 965000
<EPS-PRIMARY> .01 .08
<EPS-DILUTED> .01 .08
</TABLE>
