FORM 10-QSB
U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(Mark one)
|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Quarter Ended December 31, 1997
|_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _______________ to _______________
Commission file number: 0-15967
EFI ELECTRONICS CORPORATION
(Exact name of small business issuer as specified in its charter)
Delaware 75-2072203
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
1751 South 4800 West, Salt Lake City, Utah 84104
(Address of principal executive offices)
Registrant's telephone number, including area code: (801) 977-9009
|X| Check 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 past twelve 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.
Number of shares of the registrant's common stock outstanding at
February 13, 1998: 5,494,484
<PAGE>
INDEX TO FORM 10-QSB
PART I FINANCIAL INFORMATION PAGE
Item 1. Financial Statements
Balance Sheets as of December 31, 1997 (Unaudited) and
March 31, 1997 ............................................ 3
Statements of Earnings for the three months
ended December 31, 1997 and 1996 (Unaudited)............... 4
Statements of Earnings for the nine months
ended December 31, 1997 and 1996 (Unaudited).............. 5
Statements of Cash Flows for the nine months
ended December 31, 1997 and 1996 (Unaudited)............... 6
Notes to Financial Statements (Unaudited).................7 - 8
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations..............................................9 - 11
PART II OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K........................ 12
Signatures....................................................... 12
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
BALANCE SHEETS
DECEMBER 31, 1997 MARCH 31, 1997
(Unaudited) (as Restated)
ASSETS
Current assets:
<S> <C> <C>
Cash and cash equivalents $ 7,287 $ 10,123
Receivables 3,416,461 3,010,255
Inventories 3,894,878 2,674,607
Prepaid expenses 175,314 42,791
- ------------------------------------------------------------------------------------------------------------
Total current assets 7,493,940 5,737,776
Property - net 2,396,612 1,658,901
Investment in joint venture 141,875 209,219
Other assets 63,435 88,872
- ------------------------------------------------------------------------------------------------------------
Total assets $ 10,095,862 $ 7,694,768
============================================================================================================
LIABILITIES
Current liabilities:
Revolving line of credit $ 3,395,148 $ 3,198,381
Current maturities of notes payable 587,414 531,690
Current maturities of capital lease obligations 99,912 -0-
Accounts payable 997,341 1,142,637
Reserve for customer warranty 246,420 293,992
Accrued income taxes payable -0- 113,309
Accrued liabilities 792,701 354,958
- ------------------------------------------------------------------------------------------------------------
Total current liabilities 6,118,936 5,634,967
Capital lease obligations, less current maturities 267,437 -0-
Notes payable, less current maturities 832,551 1,048,000
- ------------------------------------------------------------------------------------------------------------
Total liabilities 7,218,924 6,682,967
- ------------------------------------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY
Common stock 528 422
Additional paid-in capital 2,625,962 926,925
Retained earnings 460,448 294,454
- ------------------------------------------------------------------------------------------------------------
3,086,938 1,221,801
Less:Stock subscriptions and notes receivable
from management (210,000) (210,000)
- ------------------------------------------------------------------------------------------------------------
Total stockholders' equity 2,876,938 1,011,801
- ------------------------------------------------------------------------------------------------------------
Total liabilities and stockholders' equity $ 10,095,862 $ 7,694,768
============================================================================================================
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF EARNINGS (Unaudited)
For the three months ended December 31, 1997 1996
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net sales $ 4,248,981 $ 3,613,694
Cost of sales 2,699,293 2,508,439
- ------------------------------------------------------------------------------------------------------------
Gross profit 1,549,688 1,105,255
- ------------------------------------------------------------------------------------------------------------
Operating expenses:
Selling, general and
administrative 1,028,230 883,408
Research and development 236,108 130,850
- ------------------------------------------------------------------------------------------------------------
Total operating expenses 1,264,338 1,014,258
- ------------------------------------------------------------------------------------------------------------
Earnings from operations 285,350 90,997
Other income/(expense):
Equity/(loss) in earnings of joint venture (79,375) 25,875
Interest expense (135,522) (115,506)
Other, net (37,765) 81
- ------------------------------------------------------------------------------------------------------------
Total other expense (252,662) (89,550)
- ------------------------------------------------------------------------------------------------------------
Earnings before income taxes 32,688 1,447
Income taxes -0- -0-
- ------------------------------------------------------------------------------------------------------------
Net earnings $ 32,688 $ 1,447
============================================================================================================
Earnings per common and common
equivalent share $ 0.01 $ 0.00
============================================================================================================
Weighted average common and common
equivalent shares outstanding 5,273,096 4,213,674
============================================================================================================
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF EARNINGS (Unaudited)
For the nine months ended December 31, 1997 1996
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net sales $ 12,079,263 $ 10,282,056
Cost of sales 7,741,446 6,833,501
- ------------------------------------------------------------------------------------------------------------
Gross profit 4,337,817 3,448,555
- ------------------------------------------------------------------------------------------------------------
Operating expenses:
Selling, general and
administrative 3,104,695 3,007,218
Research and development 605,811 386,367
- ------------------------------------------------------------------------------------------------------------
Total operating expenses 3,710,506 3,393,585
- ------------------------------------------------------------------------------------------------------------
Earnings from operations 627,311 54,970
Other income/(expense):
Equity in earnings of joint venture 23,375 77,625
Interest expense (398,892) (333,330)
Other, net (85,800) 1,632
- ------------------------------------------------------------------------------------------------------------
Total other expense (461,317) (254,073)
- ------------------------------------------------------------------------------------------------------------
Earnings/(loss) before income taxes 165,994 (199,103)
Income taxes -0- -0-
- ------------------------------------------------------------------------------------------------------------
Net earnings/(loss) $ 165,994 $ (199,103)
============================================================================================================
Earnings/(loss) per common and common
equivalent share $ 0.04 $ (0.05)
============================================================================================================
Weighted average common and common
equivalent shares outstanding 4,704,084 3,684,219
============================================================================================================
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CASH FLOWS (Unaudited)
For the nine months ended December 31, 1997 1996
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Cash flows provided from operating activities:
Net earnings (loss) $ 165,994 $ (199,103)
Adjustments to reconcile net earnings/(loss) to net cash
provided by/(used in) operating activities:
Depreciation 442,657 523,878
Amortization 40,497 75,539
Equity in earnings of joint venture (23,375) (77,625)
Changes in operating assets and liabilities:
Receivables (406,206) (148,975)
Inventories (1,220,271) (342,696)
Prepaid expenses (173,020) (52,107)
Other assets 25,437 7,036
Accounts payable (145,296) 49,193
Reserve for customer warranty (47,572) (106,491)
Accrued income taxes payable (113,309) -0-
Accrued liabilities 437,743 61,906
- ------------------------------------------------------------------------------------------------------------
Net cash used in operating activities (1,016,721) (209,445)
- ------------------------------------------------------------------------------------------------------------
Cash flows from investing activities:
Capital expenditures (761,601) (317,372)
Distribution from joint venture 90,719 -0-
- ------------------------------------------------------------------------------------------------------------
Net cash used in investing activities (670,882) (317,372)
- ------------------------------------------------------------------------------------------------------------
Cash flows from financing activities:
Net borrowings under revolving line of credit 196,767 133,154
Principal payments under notes payable (364,725) (102,200)
Proceeds from borrowings under notes payable 205,000 -0-
Principal payments under capitalized lease obligations (51,418) -0-
Proceeds from exercise of stock options 3,787 -0-
Proceeds from issuance of common stock 1,695,356 498,500
- ------------------------------------------------------------------------------------------------------------
Net cash provided by financing activities 1,684,767 529,454
- ------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in cash and cash equivalents (2,836) 2,637
Cash and cash equivalents at beginning of period 10,123 8,518
- ------------------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of period $ 7,287 $ 11,155
============================================================================================================
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Income taxes $ 113,309 $ -0-
Interest $ 402,991 $ 321,451
============================================================================================================
Supplemental disclosures of non-cash investing and financing activities:
Subordinated debt plus accrued interest exchanged for
455,423 shares of common stock $ -0- $ 521,834
============================================================================================================
Supplemental disclosures of capitalized lease obligations:
Capitalized lease obligations $ 418,767 $ -0-
============================================================================================================
</TABLE>
See notes to financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
In the opinion of management, the accompanying financial statements contain
adjustments, consisting of normal recurring accruals, necessary for a fair
presentation of the financial position of EFI Electronics Corporation (the
"Company") as of December 31, 1997 and March 31, 1997, and the results of its
operations and its cash flows for the nine months ended December 31, 1997 and
1996. The results of operations for the three and nine months ended December 31,
1997 are not necessarily indicative of the results that may be expected for the
year ending March 31, 1998.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted as specified by the instructions to Form 10-QSB
and Item 310 of Regulation S-B. It is suggested that these financial statements
and related notes be read in conjunction with the Company's 1997 Form 10-KSB
included in the Annual Report to Shareholders.
1. RECEIVABLES
<TABLE>
<CAPTION>
Receivables consist of the following:
December 31,1997 March 31, 1997
(Unaudited)
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Trade and other receivables $ 2,914,667 $ 3,124,292
Receivable from joint venture 534,902 234,340
- ------------------------------------------------------------------------------------------------------------
3,449,569 3,358,632
Allowance for doubtful accounts (33,108) (348,377)
- ------------------------------------------------------------------------------------------------------------
Total Receivables $ 3,416,461 $ 3,010,255
============================================================================================================
2. INVENTORIES
Inventories consist of the following:
December 31, 1997 March 31, 1997
(Unaudited)
- ------------------------------------------------------------------------------------------------------------
Raw materials $ 2,356,533 $ 1,367,125
Work-in-process 651,442 498,178
Finished goods 886,903 809,304
- ------------------------------------------------------------------------------------------------------------
Total $ 3,894,878 $ 2,674,607
============================================================================================================
</TABLE>
3. NET EARNINGS (LOSS) PER COMMON SHARE
Net earnings/(loss) per common and common equivalent share is computed based on
the number of common and dilutive common stock equivalent shares outstanding and
is adjusted for the assumed conversion of shares issuable upon exercise of
options or warrants, after the assumed repurchase of common shares with the
related proceeds. Stock subscriptions receivable are treated as outstanding
shares for purposes of this computation.
In February 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standard (SFAS) 128, "Earnings per Share." SFAS 128 is
effective for financial statements for periods ending after December 15, 1997,
and requires companies to report both basic and diluted earnings per share.
Basic earnings per share does not include the addition of common stock
equivalents to the shares outstanding. Diluted earnings per share requires the
addition of common stock equivalents to the shares outstanding. Average shares
outstanding is the denominator used in basic earnings per share calculations.
Accordingly, basic earnings per share will be higher than diluted earnings per
share. This statement replaces Accounting Principles Board (APB) 15. The effect
of adopting SFAS 128 will not materially effect the Company's earnings per
share.
<PAGE>
NOTES TO FINANCIAL STATEMENTS - Continued (Unaudited)
4. REVOLVING LINE OF CREDIT, CAPITAL LEASE OBLIGATIONS AND NOTES
PAYABLE
At December 31 and March 31, 1997, notes payable and revolving line of credit,
the carrying value of which approximates fair value, consisted of the following:
<TABLE>
<CAPTION>
December 31, 1997 March 31, 1997
(Unaudited)
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Revolving line of credit $ 3,395,148 $ 3,198,381
============================================================================================================
Capitalized lease obligations $ 367,349 $ -0-
Less current maturities (99,912) -0-
- ------------------------------------------------------------------------------------------------------------
Capitalized lease obligations (less current maturities) $ 267,437$ -0-
============================================================================================================
Notes payable:
Collateralized promissory note $ 881,057 $ 1,040,000
Uncollateralized subordinated note - director 350,000 500,000
Uncollateralized note to former officer 4,410 39,690
Collateralized promissory note - machinery 184,498 -0-
- ------------------------------------------------------------------------------------------------------------
1,419,965 1,579,690
Less current maturities (587,414) (531,690)
- ------------------------------------------------------------------------------------------------------------
Total notes payable, less current maturities $ 832,551 $ 1,048,000
============================================================================================================
</TABLE>
The revolving line of credit provides for borrowings up to $3,700,000 based on
certain asset ratios and contains financial covenants, the most restrictive of
which require that the Company maintain not less than $2,150,000 of net worth
plus subordinated debt. At December 31, 1997, the Company was in compliance with
these covenants.
5. LEASES
The Company entered into an operating lease for a new building and consolidated
its operations into this facility in November 1997. The address of this location
is 1751 South 4800 West, Salt Lake City, Utah 84104. This facility is located in
an industrial park and consists of over 56,000 square feet. The Company has
signed a 12 year lease through October 31, 2009, with monthly lease payments of
$22,586 plus taxes, insurance and maintenance.
6. SUBSEQUENT EVENTS
On January 1, 1998, the Company completed the acquisition of 50% of the
outstanding shares of EFI Electronics Europe SL, a Spanish Company having its
principal place of business in Barcelona, Spain ("EFI Spain"). The Company owned
the remaining 50% of the shares of EFI Spain prior to the acquisition. EFI Spain
was a joint venture between the Company and third parties which was organized to
engage in European distribution of the products of the Company.
The purchase price for the shares was $400,000 U.S., subject to adjustment based
upon final audited statements of EFI Spain, and 220,000 shares of the Company's
Common Stock. The purchase price and number of shares offered was determined
through arms'-length negotiations conducted by principals of the Company and the
principal shareholder of EFI Spain. There was no material relationship between
the shareholders of EFI Spain and the Company or any of its affiliates, any
director or officer of the Company, or any associate of any such director or
officer.
<PAGE>
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
General:
The following discussion should be read in conjunction with the financial
statements and notes thereto contained elsewhere herein.
Results of Operations:
Net Sales for the three months ended December 31, 1997, increased by $635
thousand (18%) compared to the three months ended December 31, 1996. Net sales
for the nine months ended December 31, 1997 increased by approximately $1.8
million (17%) over the same period in 1996. These increases are due to (1)
increasing growth in the Company's bid-spec and utility businesses, (2)
continued growth in international sales, and (3) growth in government sales.
Electrical distribution and private label channel sales were slightly lower than
in previous periods.
Gross Profit on sales for the three months ended December 31, 1997, increased by
$444 thousand (40%) compared to the three months ended December 31, 1996. Gross
profit for the nine months ended December 31, 1997 was $889 thousand (26%)
higher compared to gross profit for the nine months ended December 31, 1996.
These increases are due to the significant increases in revenue compared to the
same periods in 1996. Gross profit as a percentage of sales for the three and
nine months ended December 31, 1997 increased 5 and 2 percentage points,
respectively, over the same periods ended in 1996 as a result of pricing
adjustments with the Company's affiliate in Spain (see "Other income/expense"
below).
Operating Expenses for the three months ended December 31, 1997 increased by
$250 thousand (25%), compared to the three months ended December 31, 1996.
Operating expenses for the nine months ended December 31, 1997 increased by $317
thousand (9%) as compared to the same period in 1996. Operating expenses as a
percentage of sales for the nine months ended December 31, 1997 decreased by
three percentage points as compared to the nine months ended December 31, 1996.
The changes in operating expenses are described below:
Research and development expenses increased $105 thousand for the three
months ended December 31, 1997, as compared to the same period ended
December 31, 1996. Research and development expenses increased $219
thousand form the nine months ended December 31, 1997 as compared to the
nine months ended December 31, 1996. The Company is incurring significant
expenses for re-certification of all existing products to new UL
standards.
Selling, general and administrative expenses increased $145 thousand for
the three months ended December 31, 1997 as compared to December 31, 1996.
Increases occurred in several categories, including travel, occupancy
expense and incentive compensation. Selling, general and administrative
expenses increased by $97 thousand for the nine months ended December 31,
1997 as compared to the same period ended December 31, 1996.
Other income/(expense) for the three months ended December 31, 1997
declined $163 thousand as a result of 1) losses on the disposition of
equipment and leasehold improvements related to moving the Company's
facility in November and 2) reduction of year to date equity in earnings
from a joint venture resulting from retroactive pricing adjustments from
the Company to this affiliate in preparation for an acquisition of 100%
ownership in this joint venture partner as of January 1, 1998.
<PAGE>
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations, continued
Net Earnings for the three months ended December 31, 1997, increased to $33
thousand, an increase of $32 thousand compared to net earnings of $1 thousand
for the three months ended December 31, 1996. These changes resulted from
improvements in revenue and gross profit offset partially by increases in
operating expenses. Net earnings for the nine months ended December 31, 1997
increased to $166 thousand, an improvement of $365 thousand, compared to a net
loss of $199 thousand for the same period ended in 1996.
Liquidity and Capital Resources:
Cash Flows Used In Operating Activities for the nine months ended December 31,
1997, resulted in a net use of cash of $1.0 million compared to $209 thousand
used in the nine months ended December 31, 1996. The items that influenced this
increase are described below:
Receivables increased by $406 thousand (13%) net of bad debt allowance as
a result of significant increases in sales and price adjustments to the
Company's Spanish affiliate.
Inventories increased by $1.2 million (46%). A portion of this increase is
related to increasing sales. The balance of this increase is related to
increases to support shipments in January for a new Private Label
customer.
Accounts payable decreased by $145 thousand during the first nine months
of fiscal 1998. The Company has continued to improve its position with
suppliers due, in part, to the proceeds from the sale of common stock
received during the second quarter of fiscal 1998. The Company has
maintained adequate relationships with its suppliers and remains on "open
account" with all significant vendors.
Accrued liabilities increased $438 thousand for the period ended December
31, 1997. This increase is due to increases in incentive compensation
related to profitability, payroll and fringe benefits, real property
taxes, personal property taxes and accrued payables of inventory which are
affected by timing of actual payments made.
Cash Flows used in Investing Activities increased for the nine months ended
December 31, 1997 by $354 thousand compared to the nine months ended December
31, 1996. The major reason for this increase is due to an investment in a state
of the art axial component insertion machine in the first quarter and tooling
purchases for new products.
Cash Flows provided from Financing Activities increased by $1.2 million for the
nine months ended December 31, 1997 compared to the nine months ended December
31, 1996. The largest portion of this increase is due to the sale of common
stock to an outside Investor. A smaller portion of the increase is due to a note
in the amount of $205,000 incurred to finance the insertion. These were offset
by repayments of notes payable of $365 thousand, capitalized lease obligations
of $51 thousand and borrowings on the revolving line of credit of $197 thousand.
<PAGE>
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations, continued
Factors Affecting Future Results:
The Company has generated net earnings for the current quarter and year to date
and has received a significant equity capital infusion. Based on expected future
revenues, management believes it can fund its operations from internally
generated cash flows. Management's expectations are subject to risks and
uncertainties that include, but are not limited to, the Company's dependence on
several key customers.
This Form 10-QSB contains forward-looking statements within the meaning of that
term in the Private Securities Litigation Reform Act of 1995 (Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934).
Additional written or oral forward-looking statements may be made by the Company
from time to time, in filings with the Securities and Exchange Commission or
otherwise. Readers are cautioned not to place undue reliance on any
forward-looking statements contained herein, which speak only as of the date
hereof. The Company undertakes no obligation to publicly release the result of
any revisions to these forward-looking statements that may be made to reflect
events or circumstances after the date hereof or to reflect the occurrence of
unexpected events.
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
A) Exhibits.
Exhibit 11 - Computation of Earnings Per Share
Exhibit 27 - Financial Data Schedule
B) Reports on Form 8-K.
None.
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.
EFI ELECTRONICS CORPORATION
(Registrant)
Date: February 13, 1998
/s/ Richard D. Clasen
---------------------
Richard D. Clasen
Chief Executive Officer, President and
Director (Principal Executive Officer)
/s/ David G. Bevan
------------------
David G. Bevan
Chief Financial Officer, Executive Vice
President & Secretary (Principal
Financial Officer)
EFI Electronics Corporation
Exhibit 11 - Computation of Earnings (Loss) per Share
December 31, 1997 and 1996
Weighted Average Common and Common Equivalent Shares Outstanding
Nine months ended December 31, 1997
Shares Weighted Average
Outstanding Shares Outstanding
----------- ------------------
Common shares outstanding, March 31, 1997: 4,216,174 4,216,174
Additional shares outstanding due to:
Stock issued 1,058,310 487,910
Stock split 0 0
Stock acquired (Treasury) 0 0
Stock retired 0 0
---------- ----------
Common shares outstanding December 31, 1997: 5,274,484 4,704,084
========== ==========
Weighted Average Common and Common Equivalent Shares Outstanding
Nine months ended December 31, 1996
Shares Weighted Average
Outstanding Shares Outstanding
----------- ------------------
Common shares outstanding, March 31, 1996: 3,173,822 3,173,822
Additional shares outstanding due to:
Stock issued 1,039,852 510,397
Stock split 0 0
Stock acquired (Treasury) 0 0
Stock retired 0 0
---------- ----------
Common shares outstanding December 31, 1996: 4,213,674 3,684,219
========== ==========
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> DEC-31-1997
<CASH> 7,287
<SECURITIES> 0
<RECEIVABLES> 2,914,667
<ALLOWANCES> 33,108
<INVENTORY> 3,894,878
<CURRENT-ASSETS> 7,493,940
<PP&E> 5,279,063
<DEPRECIATION> 2,882,451
<TOTAL-ASSETS> 10,095,862
<CURRENT-LIABILITIES> 6,118,936
<BONDS> 1,099,988
0
0
<COMMON> 528
<OTHER-SE> 2,876,410
<TOTAL-LIABILITY-AND-EQUITY> 10,095,862
<SALES> 12,081,663
<TOTAL-REVENUES> 12,079,263
<CGS> 7,741,446
<TOTAL-COSTS> 3,710,506
<OTHER-EXPENSES> 62,425
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 398,892
<INCOME-PRETAX> 165,994
<INCOME-TAX> 0
<INCOME-CONTINUING> 165,994
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 165,994
<EPS-PRIMARY> 0.04
<EPS-DILUTED> 0.04
</TABLE>
