August 17, 1998
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 July 1, 1998.
This filing is being effected by direct transmission to the Commission's Edgar
System.
Very truly yours,
Loretta C. Abbey
Controller
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 July 1, 1998
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 2,370,200
$0.01 par value As of August 6, 1998
FAMILY STEAK HOUSES OF FLORIDA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
July 1, 1998
(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 twenty-six week
periods ended July 1, 1998 are not necessarily indicative of the
results that may be expected for the fiscal year ending December 30,
1998. 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 31, 1997.
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
Basic earnings per share for the thirteen weeks ended July 1, 1998 and
July 2, 1997 were computed based on the weighted average number of
common shares outstanding. Diluted earnings per share for those
periods have been computed based on the weighted average number of
common shares outstanding, giving effect to all dilutive potential
common shares that were outstanding during the period. Dilutive 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 July 1, 1998 versus July 2, 1997
The Company experienced an increase in total sales during the
second thirteen weeks of 1998 compared to the second thirteen weeks of
1997. 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) in the second quarter of 1998
increased 1.1% from the same period in 1997, compared to a decrease of
8.9% from 1997 as compared to 1996. In addition to the same-store
sales increase, total sales increased due to the opening of a new
store in June 1998.
Management believes that the increase in same-store sales is
primarily due to significant increases in sales at certain restaurants
remodeled by the Company. These remodels included installation of
scatter bars at three restaurants, which resulted in same-store sales
gains at these locations in excess of 20%. These increases were
somewhat offset by decreases in sales at other Company restaurants
caused by the effects of increasing competition, including several new
or remodeled restaurants opened by competitors in areas close to
Company restaurants. Management is seeking to improve sales trends by
focusing on improved restaurant operations, retraining restaurant
employee staffs, remodeling one additional restaurant, and devising
competitive strategies to offset the effects of new competition.
Management plans to sell restaurants which are not meeting sales and
profit expectations, and has listed six restaurants for sale. Proceeds
from any sales of restaurants would be used either to reduce long-term debt
or build new restaurants with more competitive facilities in superior
locations.
Due primarily to the negative effects of increasing competition
on the Company's sales and profitability, in March 1998 the Company
announced that it had retained an investment banking firm specializing
in the restaurant industry to assist the Company in identifying and
evaluating strategic opportunities which would enhance shareholder
value. The Company intends to continue to evaluate strategic
opportunities recommended by the investment banking firm, and to
pursue such strategies it deems appropriate. However, there can be no
assurance that a restructuring or transaction will result from this
process.
Historically, the third and fourth quarters of each fiscal year
are less profitable for the Company than the first and second
quarters. If year-to-date sales trends continue, the Company would
likely incur losses in the third and/or fourth quarters.
The costs and expenses of the Company's restaurants include food
and beverage, payroll, payroll taxes and employee benefits,
depreciation and amortization, repairs, maintenance, utilities,
supplies, advertising, insurance, property taxes and rents. 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 decreased to 87.1%
in the second quarter of 1998, from 89.0% in the same quarter of 1997,
primarily due to a decrease in payroll and benefits costs as a
percentage of sales.
Food and beverage costs as a percentage of sales decreased to
39.2% in the second quarter of 1998 from 39.5% in the same period of
1997, primarily due to sales price increases implemented by the
Company.
Payroll and benefits as a percentage of sales decreased from
29.1% in the second quarter of 1997 to 27.8% in the same quarter of
1998, primarily due to improved results in the Company's workers'
compensation experience.
Other operating expenses as a percentage of sales decreased to
15.6% in the second quarter of 1998 from 15.9% in 1997, primarily due
to a reduction in costs for rented equipment. Depreciation and
amortization remained consistent at 4.6% as a percentage of sales in
the second quarter of 1998 compared to 1997.
General and administrative expenses as a percentage of sales were
6.4% in the second quarter of 1998, compared to 7.9% in the same
quarter of 1997. The decrease was due to costs incurred in 1997 in
response to an unsolicited tender offer. Interest expense increased to
$412,900 during the second quarter of 1998 from $398,400 in 1997. The
increase was due primarily to the borrowing of $1.3 million under the
Company's credit facility in February 1998.
The effective income tax rates for the quarters ended July 1,
1998 and July 2, 1997 were 20.0% and (20.0%), respectively.
Net earnings for the second quarter of 1998 were $23,400,
compared to a net loss of $254,100 in 1997. Earnings per share were
$0.01 for 1998, compared to net loss per share of $.12 in 1997. The
loss in the second quarter of 1997 was primarily due to the costs
associated with the unsolicited tender offer, and to the decline in
same-store sales.
Six Months Ended July 1, 1998 versus July 2, 1997
For the six months ended July 1, 1998, total sales decreased 1.6%
compared to the same period of 1997. Same-store sales decreased 1.0%
for the six months ended July 1, 1998. Management believes the
decrease was primarily due to increased competition.
Food and beverage costs for the six month period ended July 1,
1998 was 39.0%, compared to 39.1% for the same period in 1997. Payroll
and benefits decreased from 28.2% in 1997 to 27.7% in 1998. The
decrease was primarily due to improved results in the Company's
workers' compensation experience.
For the six months ended July 1, 1998, other operating expenses
increased to 15.2% from 15.1% in 1997, primarily due to higher
advertising costs. Depreciation and amortization increased as a
percentage of sales for the six month period ended July 1, 1998,
compared to the same period of 1997, due to additions to property and
equipment over the past year.
For the six months ended July 1, 1998, general and administrative
expenses decreased to 6.1% of sales from 6.7% for the same period in
1997, due to costs incurred in 1997 associated with an unsolicited
tender offer. Interest expense increased for the first six months of
1998 to $808,400 from $788,900 for the same period in 1997, due to
additional interest cost from the borrowing of $1.3 million under the
Company's credit facility in February 1998.
The effective income tax rates for the six-month periods ended
July 1, 1998 and July 2, 1997 were 20.0% and (20.0%), respectively.
Net earnings for the six months ended July 1, 1998 were $188,000,
or $.08 per share, compared to net earnings of $98,700, or $.04 per
share for the same period in 1997.
The Company's operations are subject to some seasonal
fluctuations. Revenues per restaurant generally increase from January
through April and decline from September through December. Operatiing
results for the quarter ended July 1, 1998 are not necessarily
indicative of the results that may be expected for the fiscal year
ending December 30, 1998.
Recent Developments
Possible Delisting of Securities from The Nasdaq Stock Market
The Company's common stock is currently listed on the Nasdaq
National Market. On August 22, 1997, the Securities and Exchange
Commission approved changes to the listing and maintenance
requirements of the National Market. The Company's qualification for
continued listing on this market would require that (i) the Company
maintain at least $4.0 million in net tangible assets, (ii) the
minimum bid price of the Common Stock be $1.00 or more per share,
(iii) there be at least 750,000 shares in the public float, valued at
a minimum of $5.0 million or more, (iv) the Common Stock have at least
two active market makers and (v) the Common Stock be held by at least
400 holders.
On August 12, 1998 the Company received notice from Nasdaq that
it was not in compliance with the public float requirement. According
to Nasdaq, if the Company's public float does not reach the required
$5.0 million for 10 consecutive trading days before November 9, 1998,
the Company's stock will be delisted from the Nasdaq market. The
Company may request a hearing to attempt to maintain its listing prior
to the November 9th deadline. There can be no assurance that such a
hearing would be successful, or that the Company will be able to
maintain its listing on Nasdaq.
If the Company is unable to satisfy the Nasdaq National Market's
maintenance requirements, the Company's securities may be delisted
from the Nasdaq National Market. In such event, trading, if any, in
the Common Stock would thereafter be conducted in the over-the-counter
markets in the so-called "pink sheets" or the National Association of
Securities Dealers, Inc.'s "Electronic Bulletin Board", or, possibly
in the Nasdaq SmallCap Market. Consequently, the liquidity of the
Company's securities could be impaired, not only in the number of
shares that could be bought and sold, but also as a result of delays
in the timing of the transactions, a reduction in the number and
quality of security analysts' and the news media's coverage of the
Company, lower prices for the Company's securities than might
otherwise be attained and a larger spread between the bid and asked
prices for the Company's securities.
In addition, if the Company's securities were to be delisted from
the Nasdaq National Market, the Company's securities could become
subject to Rule 15g-9 under the Exchange Act relating to penny stocks,
which imposes additional sales practice requirements on broker-dealers
which sell such securities to persons other than established customers
and "accredited investors" (generally, individuals with net worth in
excess of $1,000,000 or annual incomes exceeding $200,000, or $300,000
together with their spouses). Commission regulations define a "penny
stock" to be any equity security that is not listed on The Nasdaq
Stock Market or a national securities exchange and that has a market
price (as therein defined) of less than $5.00 per share or with an
exercise price of less than $5.00 per share, subject to certain
exceptions. If the Company's securities were subject to the rules on
penny stocks, the market liquidity for the Company's securities could
be adversely affected.
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 July 1, 1998, the Company had a working capital deficit of
$1,638,700, compared to a working capital deficit of $1,794,700 at
December 31, 1997. The decrease in the working capital deficit during
the first six months in 1998 was due primarily to cash generated from
operations.
Cash provided by operating activities increased to $1,959,200 in
the first six months of 1998 from $1,151,800 in the same period of
1997 This increase is primarily due to decreases in certain current
assets and to increases in certain current liabilities in 1998.
The Company spent approximately $2,342,900 in the first six
months of 1998 for land, leasehold improvements, and restaurant
equipment and improvements. Total capital expenditures for 1998, based
on present costs and plans for expansion, are estimated to be
$4,800,000. The Company projects that cash generated from operations
plus additional borrowing of $1,300,000 under the Company's credit
facility will be sufficient to fund these improvements.
In December 1996, the Company entered into a $15.36 million Loan
Agreement with FFCA Mortgage Corporation ("FFCA"). The Loan Agreement
governs eighteen Promissory Notes payable to FFCA. Each Note is
secured by a mortgage on a Company restaurant property. The Promissory
Notes provide for a term of twenty years and an interest rate equal to
the thirty-day LIBOR rate plus 3.75%, adjusted monthly. The Loan
Agreement provides for various covenants, including the maintenance of
prescribed debt service coverages. As of July 1, 1998, the outstanding
balance due under the loan was $14,506,700.
The Company used the proceeds of the FFCA loan to retire its
Notes with Cerberus Partners, L.P. ("Cerberus") and its loans with the
Daiwa Bank Limited and SouthTrust Bank of Alabama, N.A. In addition,
the Company retired Warrants for 210,000 shares of the Company's
common stock previously held by Cerberus. Cerberus continues to hold
Warrants to purchase 140,000 shares of the Company's common stock at
an exercise price of $2.00 per share.
Also in December 1996, the Company entered into a separate loan
agreement with FFCA under which it was entitled to borrow up to an
additional $4,640,000. This additional financing would be evidenced by
four additional Promissory Notes secured by mortgages on four Company
restaurant properties. The terms and conditions of this loan agreement
are substantially identical to those of the loan agreement described
above. The Company borrowed $1,290,000 under the agreement in February
1998, secured by a mortgage on one restaurant property. The Company
expects to borrow an additional $1,300,000 under the agreement in
August 1998, secured by two restaurant properties. As of July 1, 1998,
the outstanding balance under this loan was $1,283,500.
The Company's ability to initiate any additional borrowing (after
the $1,300,000 in August 1998) under the $4.6 million loan agreement
has expired. The Company's ability to build additional new restaurants
or make other capital improvements is dependent on its ability to
secure new financing.
Information Systems and the Year 2000
The Company initiated the process of preparing its computer
systems and applications for the year 2000 in January 1998. This
process involves modifying or replacing certain hardware and software
maintained by the Company as well as communicating with external
service providers to ensure that they are taking the appropriate
action to remedy their Year 2000 issues. Management expects to have
substantially all of the system and application changes identified and
in process by the end of 1999 and believes that its level of
preparedness is appropriate.
The Company estimates that the total cumulative cost of the
project could range as high as $500,000, which includes both internal
and external personnel costs related to modifying the systems as well
as the cost of purchasing or leasing capital hardware and software.
Purchased hardware and software will be capitalized in accordance with
normal policy. Personnel and all other costs related to the project
are being expensed as accrued.
The costs of the project and the expected completion dates are
based on management's best estimates.
PART II. OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
(a) On June 26, 1998, the Company held its annual meeting
of shareholders to elect directors to serve for the
upcoming year.
(b) The following table sets forth the number of votes for
and against each of the nominees for director.
Nominee For Withheld
Edward B. Alexander 1,977,308 38,166
Glen F. Ceiley 1,972,572 42,902
Lewis E. Christman, Jr 1,974,796 40,678
Jay Conzen 1,974,306 41,168
Joseph M. Glickstein, Jr. 1,973,706 41,768
Richard M. Gray 1,976,480 38,988
G. Alan Howard 1,977,506 37,968
All nominees for director were elected by affirmative
vote of a majority of the 2,015,474 shares of the Company's
common stock represented in person or by proxy at the annual
meeting of shareholders.
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, Jr.
---------------------------------
Date: August 12, 1998 Lewis E. Christman, Jr.
President and CEO
/s/ Edward B. Alexander
---------------------------------
Date: August 12, 1998 Edward B. Alexander
Vice President of Finance
(Principal Financial and Accounting
Officer)
Family Steak Houses of Florida, Inc.
Consolidated Results of Operations
(Unaudited)
<TABLE>
For The Quarters Ended
------------------------
<CAPTION> July 1, July 2,
1998 1997
----------- -----------
<C> <C>
<S>
Sales $9,703,800 $9,447,200
Cost and expenses:
Food and beverage 3,803,500 3,728,700
Payroll and benefits 2,695,000 2,748,000
Depreciation and amortization 444,000 430,100
Other operating expenses 1,510,400 1,497,500
General and administrative expenses 619,300 744,200
Franchise fees 290,600 283,200
Loss from disposition of equipment 42,300 61,000
----------- -----------
9,405,100 9,492,700
----------- -----------
Earnings (loss) from operations 298,700 (45,500)
Interest and other income 143,500 126,400
Interest expense (412,900) (398,400)
----------- -----------
Earnings (loss) before income taxes 29,300 (317,500)
Provision (benefit) for income taxes 5,900 (63,400)
----------- -----------
Net earnings (loss) $23,400 ($254,100)
=========== ===========
Basic earnings per share $0.01 ($0.12)
=========== ===========
Diluted earnings per share $0.01 ($0.11)
=========== ===========
See accompanying notes to consolidated financial statements.
</TABLE>
Family Steak Houses of Florida, Inc.
Consolidated Results of Operations
(Unaudited)
<TABLE>
For The Six Months Ended
------------------------
<CAPTION> July 1, July 2,
1998 1997
----------- -----------
<C> <C>
<S>
Sales $19,694,400 $20,006,300
Cost and expenses:
Food and beverage 7,671,000 7,816,900
Payroll and benefits 5,460,000 5,645,400
Depreciation and amortization 882,300 845,200
Other operating expenses 3,000,300 3,014,700
General and administrative expenses 1,203,700 1,332,000
Franchise fees 590,200 599,800
Loss from disposition of equipment 83,500 78,300
----------- -----------
18,891,000 19,332,300
----------- -----------
Earnings (loss) from operations 803,400 674,000
Interest and other income 239,900 238,400
Interest expense (808,400) (788,900)
----------- -----------
Earnings (loss) before income taxes 234,900 123,500
Provision (benefit) for income taxes 46,900 24,800
----------- -----------
Net earnings (loss) $188,000 $98,700
=========== ===========
Basic earnings per share $0.08 $0.04
=========== ===========
Diluted earnings per share $0.08 $0.04
=========== ===========
See accompanying notes to consolidated financial statements.
</TABLE>
Family Steak Houses of Florida, Inc.
Consolidated Balance Sheets
(Unaudited)
<TABLE>
<CAPTION> July 1, December 31,
1998 1997
------------ ------------
<C> <C>
<S>
ASSETS
Current assets:
Cash and cash equivalents $1,796,700 $696,000
Investments 644,000 600,300
Receivables 68,700 93,200
Current portion of mortgages receivable 68,000 124,900
Income taxes receivable -- 297,900
Inventories 264,500 280,500
Prepaid and other current assets 293,600 311,200
----------- -----------
Total current assets 3,135,500 2,404,000
Mortgages receivable 273,900 308,700
Property and equipment:
Land 9,678,500 9,088,300
Buildings and improvements 22,004,700 19,908,900
Equipment 12,454,200 13,151,600
----------- -----------
44,137,400 42,148,800
Accumulated depreciation (16,439,300) (15,848,500)
----------- -----------
Net property and equipment 27,698,100 26,300,300
Property held for sale 539,600 552,800
Other assets, principally deferred charges,
net of accumulated amortization 850,100 767,000
----------- -----------
$32,497,200 $30,332,800
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,877,400 $1,287,000
Accrued liabilites 2,534,600 2,630,300
Income taxes payable 54,200 --
Current portion of long-term debt 305,000 278,900
Current portion of obligation under
capital lease 3,000 2,500
----------- -----------
Total current liabilities 4,774,200 4,198,700
Long-term debt 15,485,200 14,402,800
Obligation under capital lease 1,054,300 1,056,000
Deferred revenue 27,500 30,800
----------- -----------
Total liabilities 21,341,200 19,688,300
Shareholders' equity:
Preferred stock of $.01 par;
authorized 10,000,000 shares;
none issued -- --
Common stock of $.01 par;
authorized 4,000,000 shares;
outstanding 2,370,200 in 1998 and 2,216,200
shares in 1997 24,100 22,200
Additional paid-in capital 8,577,600 8,256,100
Retained earnings 2,554,300 2,366,200
----------- -----------
Total shareholders' equity 11,156,000 10,644,500
----------- -----------
$32,497,200 $30,332,800
=========== ===========
See accompanying notes to consolidated financial statements.
</TABLE>
Family Steak Houses of Florida, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION> For the Six Months Ended
------------------------
July 1, July 2,
1998 1997
----------- -----------
<C> <C>
<S>
Operating activities:
Net earnings $188,000 $98,700
Adjustments to reconcile net
earnings to net cash provided
by operating activities:
Depreciation and amortization 882,300 845,200
Directors' fees in the form of
stock options 7,500 10,000
Amortization of loan fees 11,900 11,000
Loss on disposal of equipment 83,500 78,300
Decrease (increase) in:
Receivables 24,500 (40,400)
Income taxes receivable 297,900 (83,000)
Inventories 16,000 (28,900)
Prepaids and other
current assets 17,600 (138,700)
Other assets (115,600) (50,900)
Increase (decrease) in:
Accounts payable 590,400 437,200
Accrued liabilities (95,700) 86,600
Income taxes payable 54,200 (84,800)
Deferred revenue (3,300) --
Deferred income taxes -- 11,500
----------- ------------
Net cash provided by operating activities 1,959,200 1,151,800
----------- ------------
Investing activities:
Proceeds from notes receivable 91,700 59,000
(Sale) purchase of investments (43,700) 492,800
Proceeds from sale of property
held for sale 13,200 --
Capital expenditures (2,342,900) (1,436,500)
----------- ------------
Net cash used by investing activities (2,281,700) (884,700)
----------- ------------
Financing activities:
Payments on long-term debt (181,500) (211,500)
Construction draw on capital lease -- 500,100
Proceeds from issuance of long-term debt 1,290,000 --
Payments on capital lease (1,200) (1,400)
Proceeds from the issuance of
common stock 315,900 30,600
----------- ------------
Net cash provided by financing activities 1,423,200 317,800
----------- ------------
Net increase in cash and cash equivalents 1,100,700 584,900
Cash and cash equivalents-beginning of period 696,000 1,750,800
----------- ------------
Cash and cash equivalents-end of period $1,796,700 $2,335,700
=========== ============
Supplemental disclosures of cash information:
Cash paid during the period for interest $915,800 $719,100
=========== ============
Cash paid during the period for income taxes $0 $181,000
=========== ============
See accompanying notes to consolidated financial
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This financial data schedule contains summary financial information extracted
from the Company's 1998 Form 10-Q for the Quarter ended July 1, 1998 and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<RESTATED>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-30-1998
<PERIOD-END> JUL-01-1998
<CASH> 1796700
<SECURITIES> 644000<F1>
<RECEIVABLES> 68700
<ALLOWANCES> 0
<INVENTORY> 264500
<CURRENT-ASSETS> 3135500
<PP&E> 44137400
<DEPRECIATION> 16439300
<TOTAL-ASSETS> 32497200
<CURRENT-LIABILITIES> 4774200
<BONDS> 0
0
0
<COMMON> 24100
<OTHER-SE> 11131900
<TOTAL-LIABILITY-AND-EQUITY> 32497200
<SALES> 9703800
<TOTAL-REVENUES> 9703800
<CGS> 3803500
<TOTAL-COSTS> 9405100
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 412900
<INCOME-PRETAX> 29300
<INCOME-TAX> 5900
<INCOME-CONTINUING> 23400
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 23400
<EPS-PRIMARY> .01
<EPS-DILUTED> .01
<FN>
<F1>Represents investments in certificates of deposits with maturities of less
than one year.
</FN>
</TABLE>
