U. S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark one)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1998
[ ] 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 0-18552
Pennichuck Corporation
(Exact name of small business issuer as specified in its charter)
New Hampshire 02-0177370
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
Four Water Street, Nashua, New Hampshire 03061
(Address of principal executive offices) (Zip Code)
(603) 882-5191
(Issuer's telephone number)
Not applicable
(Former name, former address and former fiscal year,
if changed since last report)
Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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
State the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practical date:
Common Stock, $1.00 Par Value -- 1,221,523 shares as of October 1, 1998
INDEX
PENNICHUCK CORPORATION AND SUBSIDIARIES
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION PAGE NUMBER
- ---------------------------------- -----------
<S> <C> <C>
Item 1. Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets-
September 30, 1998 and December 31, 1997 3
Condensed Consolidated Statements of Income-
Nine months and quarter ended
September 30, 1998 and 1997 4
Condensed Consolidated Statements of Cash Flows-
Nine months ended September 30, 1998 and 1997 5
Notes to Condensed Consolidated Financial
Statements-September 30, 1998 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 7-13
PART II. OTHER INFORMATION
Item 1. Legal Proceedings Not Applicable
Item 2. Changes in Securities Not Applicable
Item 3. Defaults upon Senior Securities Not Applicable
Item 4. Submission of Matters to a Vote of Security Holders Not Applicable
Item 5. Other Information Not Applicable
Item 6. Exhibits and Reports on Form 8-K 14
SIGNATURES 14
</TABLE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
PENNICHUCK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
September 30 December 31
1998 (In thousands) 1997
-----------------------------------------
ASSETS (Unaudited) (Restated)
<S> <C> <C>
Property, Plant and Equipment
Land $ 1,330 $ 424
Buildings 22,288 19,539
Equipment 53,225 45,415
Construction work in progress 511 139
77,354 65,517
Less accumulated depreciation 19,963 16,561
----------------------------------
57,391 48,956
Current Assets
Cash 529 448
Restricted cash 875 906
Accounts receivable, net 2,823 1,755
Inventory 360 208
Other current assets 102 497
----------------------------------
4,689 3,814
Other Assets
Land development costs 2,305 2,408
Deferred charges, net 2,187 1,752
Investment in real estate
partnerships 419 310
----------------------------------
TOTAL ASSETS $66,991 $57,240
==================================
STOCKHOLDERS' EQUITY AND LIABILITIES
Common stock-par value $1 per share $ 1,226 $ 1,213
Paid in capital 5,407 5,230
Retained earnings 9,293 8,199
Treasury stock, at cost (59) (53)
----------------------------------
15,867 14,589
Minority Interest 314 --
Long Term Debt, less current portion 33,451 26,578
Current Liabilities
Current portion of long term debt 100 100
Accounts payable 404 408
Accrued interest payable 481 351
Other accrued liabilities 1,782 927
----------------------------------
2,767 1,786
Other Liabilities
Contributions in aid of construction 9,113 8,979
Other liabilities and deferred credits 5,479 5,308
----------------------------------
TOTAL STOCKHOLDERS' EQUITY & LIABILITIES $66,991 $57,240
==================================
</TABLE>
See notes to condensed consolidated financial statements.
PENNICHUCK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
<TABLE>
<CAPTION>
Quarter Ended Nine Months Ended
September 30 September 30
-------------------------------------------
1998 1997 1998 1997
---- ---- ---- ----
(restated) (restated)
(In thousands, except per share amounts)
<S> <C> <C> <C> <C>
Revenues
Water utility operations $4,626 $3,355 $11,136 $8,652
Real estate operations and other 1,778 217 2,157 416
-------------------------------------------
6,404 3,572 13,293 9,068
Operating expenses
Water utility operations 2,700 2,129 7,194 5,995
Real estate operations and other 1,319 32 1,454 109
-------------------------------------------
4,019 2,161 8,648 6,104
Operating income 2,385 1,411 4,645 2,964
Other income 4 24 29 35
Interest expense (599) (475) (1,681) (1,325)
-------------------------------------------
Income before income taxes 1,790 960 2,993 1,674
Provision for income taxes 700 371 1,157 637
-------------------------------------------
Net income before minority interest 1,090 589 1,836 1,037
Minority interest in Westwood
Park, LLC (41) -- (41) --
-------------------------------------------
Net income $1,049 $ 589 $ 1,795 $1,037
===========================================
Net income per common share:
Basic $ .85 $ .49 $ 1.46 $ .87
Diluted $ .84 $ .48 $ 1.44 $ .86
Dividends paid per common share $ .19 $ .17 $ .57 $ .51
Weighted average number of shares
Outstanding:
Basic 1,233,797 1,202,535 1,229,604 1,198,207
Diluted 1,248,460 1,215,957 1,242,801 1,212,273
</TABLE>
See notes to condensed consolidated financial statements.
PENNICHUCK CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
Nine Months Ended
September 30
----------------------
1998 1997
---- ----
(restated)
(in thousands)
<S> <C> <C>
CASH PROVIDED (USED) BY:
Operating Activities $ 2,705 $ 3,009
Investing Activities:
Purchase of property, plant and equipment (9,767) (5,218)
(Increase) decrease in restricted cash 31 (1,252)
Receipt of contributions in aid of construction 234 101
(Increase) decrease in partnership investments 210 (62)
----------------------
(9,292) (6,431)
Financing Activities:
Payments on long-term debt (2,339) (1,121)
Proceeds from issuance of long-term debt 9,212 5,035
Increase in minority interest 314 --
Payment of common dividends (701) (597)
Proceeds from dividend reinvestment plan & other 182 96
----------------------
6,668 3,413
INCREASE (DECREASE) IN CASH 81 (8)
CASH AT BEGINNING OF PERIOD 448 346
----------------------
CASH AT END OF PERIOD $ 529 $ 338
======================
<FN>
Supplemental Cash Flow Information. Interest paid was $1,335,000 and
$1,191,000 for the nine months ended September 30, 1998 and 1997,
respectively. Income taxes paid were $414,000 and $226,000 for the nine
months ended September 30, 1998 and 1997, respectively.See notes to
condensed consolidated financial statements.
</FN>
</TABLE>
PENNICHUCK CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
September 30, 1998
NOTE A - BACKGROUND
The financial statements include the accounts of Pennichuck
Corporation (the "Company") and its wholly-owned subsidiaries, Pennichuck
Water Works, Inc. ("Pennichuck"), Pennichuck East Utility, Inc. ("Pennichuck
East"), Pittsfield Aqueduct Company, Inc. ("Pittsfield"), Pennichuck Water
Service Corporation (the "Service Corporation") and the Southwood
Corporation ("Southwood"). All significant intercompany accounts have been
eliminated in consolidation.
NOTE B - BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with generally accepted accounting
principles for interim financial information and with the instructions to
Form 10-QSB and Item 310 of Regulation S-B. 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)
considered necessary for a fair presentation have been included. Operating
results for the three month and nine month periods ended September 30, 1998
are not necessarily indicative of the results that may be expected for the
year ending December 31, 1998. The Balance Sheet amounts shown under the
December 31, 1997 column have been derived from the audited financial
statements of the Company as contained in its Annual Report to Shareholders
as restated for the merger with Pittsfield, which is discussed in Note C
below, and as such are unaudited. For further information, refer to the
consolidated financial statements and footnotes thereto included in the
Company's annual report on Form 10-KSB for the year ended December 31, 1997.
Diluted earnings per share were computed by dividing actual net income
by the adjusted weighted average number of shares of common stock which
include the effect of any dilutive unexercised stock options.
NOTE C - RESTATEMENT FOR MERGER WITH PITTSFIELD
On January 30, 1998, we merged with Pittsfield by exchanging 49,428 of
our shares for substantially all of the outstanding common stock of
Pittsfield. We used the pooling-of-interests method to account for this
merger. This methodology requires us to add Pittsfield's historical
financial statements with our historical financial statements for all
periods which are shown prior to January 30, 1998. All of the previous
financial reports that we have issued have been restated to include the
effect of Pittsfield for those years.
PART I. Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
In Management's Discussion and Analysis we explain the general
financial condition and the results of operations for the Company and its
operating subsidiaries including:
* What factors affect our business,
* What our earnings and costs were in the first nine months of 1998
and 1997 as well as during the third quarter of 1998 and 1997,
* Why those earnings and costs were different from the year
before,
* Where our earnings come from,
* How all of this affects our overall financial condition,
* What our expenditures for capital projects are expected to be in
1998 and
* Where cash will come from to pay for this year's capital
expenditures.
As you read Management's Discussion and Analysis, please refer to our
Condensed Consolidated Financial Statements contained in this Report.
Results of Operations
Nine Months Ended September 30, 1998 Compared to Nine Months Ended
September 30, 1997
In this section, we discuss the factors that affected our earnings for
the first nine months of 1998 and 1997. Our consolidated revenues are
generally seasonal due to the overall significance of the water sales of our
water utility business as a percent of consolidated revenues. Water revenues
are typically at their lowest point during the first and fourth quarters of
the calendar year. However, water revenues in the second and third quarters
tend to be greater because of increased water consumption by our residential
customers during the late spring and summer months. In addition, our
consolidated revenues are significantly affected by sales of major real
estate parcels which may occur from time to time (see discussion below).
For the nine month period that ended on September 30, 1998, our
consolidated net income was nearly $1.8 million, or $1.46 per common share
compared to $1.04 million, or $.87 per common share for the same period in
1997. The consolidated revenues from all of our business activities thus far
in 1998 were $13.3 million, representing a $4.23 million, or 46.6%, increase
over last year. As we discuss below, that increase in consolidated operating
revenues is principally attributable to:
* our water utility operations which now include the operating
activities of Pennichuck and our two new subsidiaries, Pennichuck
East and Pittsfield and
* a major land sale which occurred in the third quarter of
1998.
Water Utility Operations
The operating revenues from our water utility operations totaled $11.1
million for the first nine months of 1998. Compared to the same period in
1997, this represents a $2.5 million increase in water revenues. There are
several reasons for that increase:
* First, our largest water utility, Pennichuck, was granted a
permanent rate increase of approximately 16.8% by the New Hampshire
Public Utilities Commission ("NHPUC") effective on April 1, 1998.
Beginning on that date, we were authorized to increase our rates on
water billings to our customers. Through the first nine months of
1998, our water utility revenues include approximately $950,000
relating to that rate increase.
* Second, Pittsfield's revenues more than doubled from $160,000 in
1997 to $352,000 thus far in 1998. The 120% increase in
Pittsfield's revenues resulted from a 101% rate increase which was
approved by the NHPUC in December 1997. We were granted that
increase in rates principally to allow us to recover the costs
associated with a $900,000 water treatment facility completed in
October 1997.
* The third major factor affecting our increased water revenues was
the addition of our newly created water subsidiary, Pennichuck
East. Pennichuck East was formed in April 1998 and serves
approximately 3,600 customers in southern New Hampshire. Pennichuck
East contributed approximately $1,236,000 in water revenues during
its first six months of operations in 1998.
Our actual expenses of operating our water utility business include such
broad categories as:
* water treatment and purification,
* pumping and other distribution system functions,
* general and administrative functions,
* depreciation on existing operating assets,
* taxes other than income taxes.
On a combined basis, those utility operating expenses increased by
$1.2 million to $7.2 million for the nine months ended September 30, 1998.
The principal reasons for that increase were:
* $691,000 relating to the addition of Pennichuck East during the
second and third quarters of 1998,
* $210,000 of additional depreciation expense resulting from a higher
composite depreciation rate which we began using on April 1, 1998
(from 2.15% to 2.44%) and nearly $6 million of new plant assets,
and
* $156,000 of additional water treatment and miscellaneous
administrative expenses incurred in the nine months of 1998 over
the same period in 1997.
Contract Operations
In April 1998, the Service Corporation signed a five year contract
with the neighboring Town of Hudson, New Hampshire ("Hudson"). We will
provide certain operations and maintenance functions for Hudson in exchange
for a fixed monthly fee as agreed upon by us and Hudson. So far in 1998,
revenues from this contract and other non-regulated operating activities
have totaled $295,000. For the same period in 1997, revenues from our
Service Corporation were approximately $57,000 consisting of $43,000 from
contract operations and $14,000 from sundry leases and rents.
Real Estate Operations
For the nine months ended September 30, 1998 and 1997, we recognized
revenues from our real estate business activities of $1.82 million and
$312,000, respectively. Real estate revenues in the third quarter of 1998
include $1.3 million from the sale of land by Westwood Park LLC
("Westwood"), of which Southwood is a 60% owner. In addition, Southwood has
recognized $442,000 in revenues earned through its Bowers Pond LLC joint
venture and $66,000 of option fee income earned under a development option
agreement with a regional developer.
The operating expenses associated with our real estate activities have
increased from $107,000 in 1997 to $1.23 million in 1998. Of that increase,
approximately $1.1 million relates to the allocable land and infrastructure
costs for the major land parcel that we sold in the third quarter of 1998.
The remaining expenses are primarily for property taxes on Southwood's real
estate holdings which for the first nine months of 1998 were $57,000
compared to $75,000 in same period of 1997.
Results of Operations -- Three Months Ended September 30, 1998
Compared to Three Months Ended September 30,
1997
For the three month period which ended on September 30, 1998, our
consolidated net income was $1.05 million or $.85 per share compared to
$589,000, or $.49 per share in 1997. Our consolidated revenues for the third
quarter in 1998 increased substantially from $3.57 million in 1997 to $6.4
million in 1998 for the reasons that we discuss below.
Water Utility Operations
Our water utility operations in 1998 now include not only Pennichuck
and Pittsfield but also Pennichuck East. For the third quarter in 1998, our
water utility revenues have increased to $4.6 million or nearly 38 percent
over the same quarter last year. The factors which contributed to that
revenue growth were principally:
* additional water revenues of nearly $700,000 from Pennichuck
East,
* approximately $480,000 from the rate increase which was approved
for Pennichuck by the NHPUC effective April 1, 1998 and
* $43,000 from a 101% rate increase which was approved for Pittsfield
in December 1997.
The combined operating expenses of all of our utility operations for
the three months which ended on September 30, 1998 totaled $2.7 million, or
$571,000 more than last year. This increase reflects $350,000 for the
additional costs that we incurred for the operations of Pennichuck East. The
remainder of the increased costs related principally to Pennichuck's
operations resulting from:
* additional depreciation expense and property taxes on new property
which we placed in service since the third quarter of 1997
and
* additional water treatment and purification costs incurred in the
operation of our treatment facility.
Real Estate and Contract Operations
Revenues that we recorded from our unregulated activities, such as
real estate and contract operations, increased significantly from $217,000
in the third quarter of 1997 to nearly $1.8 million in the third quarter of
1998. That increase is made up of:
* $1.3 million resulting from a major land sale made by Westwood in
September 1998,
* $130,000 from the sale of additional homes by Bowers Pond LLC and
* $139,000 from contract revenues under our new operations contract
with the Town of Hudson.
The operating expenses associated with our real estate and other non-
regulated activities increased by nearly $1.3 million - the principal
component of which is approximately $1.1 million for the allocable land and
infrastructure cost for Westwood's major land sale. The remainder of our
increased costs for unregulated activities were primarily due to additional
contract operations costs and additional general corporate costs.
Liquidity and Financial Condition
In the following paragraphs, we discuss the financial condition of the
Company and its wholly-owned subsidiaries. This discussion focuses primarily
on the changes in our consolidated balance sheet accounts from December 31,
1997 to September 30, 1998 and on the adequacy of capital needed for our
business activities.
The primary source of cash which we need for normal operating
activities, capital projects and dividend payments to our shareowners is the
operating cash flow which we generate from day to day activities. However,
during those periods where operating cash flow is not sufficient, we borrow
funds under a revolving loan facility (the "Loan Agreement") with our bank,
Fleet Bank-NH ("Fleet"). The Loan Agreement allows us to borrow up to $4.5
million at interest rates tied to Fleet's cost of funds or LIBOR, whichever
is lower. At September 30, 1998, we had borrowed $2.5 million under the Loan
Agreement and the average interest rate of those borrowings was 6.93%. The
maturity date of all amounts borrowed under the Loan Agreement, or to be
borrowed in the next 14 months, is June 30, 2000. As a result, we have
classified our outstanding bank borrowings at September 30, 1998 under the
caption of "Long Term Debt" in the Condensed Consolidated Balance Sheets.
During the first quarter of 1998, we refinanced a $1.1 million
mortgage note issued by Pittsfield to a local bank using the Loan Agreement.
On April 24, 1998, we refinanced $1.5 million of outstanding indebtedness
under the Loan Agreement into a seven year note. The note is payable
interest only for seven years at a fixed rate of 6.50% and is secured by,
among other things, the guarantees of Southwood and the Service Corporation.
We purchased Pennichuck East's assets with the proceeds of two bank
loans totaling $7.5 million. Those loans of $4.5 million and $3.0 million
are for terms of 7 years and 2 years, respectively, and are classified as
"Long term Debt" in the Condensed Consolidated Balance Sheet at September
30, 1998. In connection with these two notes, we entered into certain
interest rate swap agreements which fix the interest rates at 6.50% and
6.20%, respectively, for the term on these notes.
Our capital expenditures totaled $6.0 million and $3.2 million in 1997
and 1996, respectively. For 1998, we expect that our total expenditures for
capital projects will be approximately $3.6 million. Practically all of our
planned capital expenditures in 1998 are for projects relating to our water
utility business. Those projects include:
* the replacement of 8,800 linear feet of pre-1900 distribution
mains,
* the addition of more efficient motor starters on Pennichuck's major
electric pumps at its treatment plant,
* the reconstruction of one of Pennichuck's dams, and
* the relocation of distribution mains to accommodate ongoing State
highway construction projects.
The remaining items in the Company's 1998 capital budget reflect
expenditures for ongoing, routine investment in new meters, services,
distribution mains and hydrants.
For the first nine months of 1998, we have invested $2.65 million in
capital projects. That amount does not include the purchase of $7.5 million
of water utility assets by Pennichuck East in April 1998. For the rest of
1998, we expect that the cash flow from our normal operating activities,
together with available short-term borrowings from our bank, will be
sufficient to fund the remaining planned capital expenditures.
The Condensed Consolidated Balance Sheet at September 30, 1998 also
reflects a line item captioned "Minority interest" totaling $314,000. This
represents a 40% interest held by a third party in Westwood Park LLC
("Westwood"), a real estate development venture. Southwood owns the
remaining 60% majority interest in Westwood, whose financial statements are
included in the accompanying consolidated financial statements at September
30, 1998. In May 1998, Westwood sold a tract of land to a third party for
approximately $1.3 million. The terms of that sale required Westwood to use
the sales proceeds to construct the necessary access road and infrastructure
for the purchaser. We have recorded the unexpended cash from this sale in
the line item captioned "Restricted Cash" at September 30, 1998.
Year 2000 Issue
We have performed an exhaustive review of our hardware and software
systems in order to determine the level of readiness to meet the next
millenium. Because we own some operating assets which pre-date 1900, we have
been aware of the potential Year 2000 problem well before the recent
publicity and in fact, 8 digit dates have been a requirement for all in-
house software developed since 1987. The Year 2000 issue has also been
addressed and included in all computer migration and upgrades since 1990.
As part of our Year 2000 project planning, the Company identified
mission-critical applications and implemented a 5 year plan in early 1994 to
replace or upgrade both hardware and software. Our central computer
platform, consisting primarily of minicomputer servers, is not completely
Year 2000 ready. However, those servers that are not year 2000 ready are
expected to be retired and replaced with Year 2000 ready servers within the
next 12 months.
Additionally, all of our software applications have been evaluated to
identify any Year 2000 problems, their importance to our operations and
efficiencies to be gained with newer and updated software. A software
development schedule has been created based on this risk assessment with the
most critical applications being implemented first. At this time, our NT
network, financial accounting, billing, customer service information and
meter management, human resources and SCADA management systems are Year 2000
ready. Our remaining software systems for work orders, inventory control,
and various maintenance programs are 90% compliant and are expected to be
fully ready by the end of 1998.
We are currently in the process of identifying all external vendors
who provide and/or require date dependent information and those customers
who are material to our operations to ensure that they will be in compliance
with the Year 2000 issue. Once identified, we will contact each vendor and
significant customer to determine its Year 2000 status. For any vendors or
customers who are determined to be critical to our operations, we will
develop a disaster recovery plan containing alternative action plans in the
event of vendor non-compliance. We anticipate having all critical resource
alternative plans in place by May 1999.
New Accounting Standards
We adopted Statement of Financial Accounting Standards ("SFAS") No.
128, "Earnings Per Share" for the year ended December 31, 1997. This
accounting statement replaces primary earnings per share with basic earnings
per share. Basic earnings per share is calculated by dividing earnings
available to common shareholders by the weighted average shares outstanding.
SFAS No. 128 also requires us to present diluted earnings per share, which
is calculated similarly to fully-diluted earnings per share.
During the second quarter of 1997, the Financial Accounting Standards
Board issued SFAS No. 130, "Reporting Comprehensive Income" and SFAS No.
131, "Disclosures About Segments of an Enterprise and Related Information."
Although adoption of these two Statements is not required until fiscal years
beginning after December 15, 1997, we do not believe that our Company will
be materially affected by the new reporting standards set forth in those
Statements.
In June 1998, the Financial Accounting Standards Board also issued
SFAS No. 133, "Accounting for Derivative Instruments and Hedging
Activities." Although SFAS No. 133 is effective for fiscal years beginning
after June 15, 1999, we have not yet evaluated or determined the impact,
timing or method of adoption of this accounting statement.
PART II. OTHER INFORMATION
Item 6. EXHIBITS AND REPORTS ON FORM 8-K:
(a) No exhibits are filed herewith.
(b) The following report on Form 8-K was filed during the third
quarter of 1998:
Press release announcing the Company's three for two stock split
filed on August 20, 1998
SIGNATURES
In accordance with the requirements of the Exchange Act, the Registrant has
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
Pennichuck Corporation
(Registrant)
Date: November 2, 1998 /s/ Maurice L. Arel
Maurice L. Arel, President and
Principal Executive Officer
Date: November 2, 1998 /s/ Charles J. Staab
Charles J. Staab, Vice President,
Treasurer and Principal Financial
Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
<CASH> 529,000
<SECURITIES> 875,000
<RECEIVABLES> 2,848,000
<ALLOWANCES> (25,000)
<INVENTORY> 360,000
<CURRENT-ASSETS> 4,689,000
<PP&E> 77,354,000
<DEPRECIATION> (19,963,000)
<TOTAL-ASSETS> 66,991,000
<CURRENT-LIABILITIES> 2,767,000
<BONDS> 33,451,000
0
0
<COMMON> 1,226,000
<OTHER-SE> 14,641,000
<TOTAL-LIABILITY-AND-EQUITY> 66,991,000
<SALES> 13,293,000
<TOTAL-REVENUES> 13,293,000
<CGS> 8,648,000
<TOTAL-COSTS> 8,648,000
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,681,000
<INCOME-PRETAX> 2,993,000
<INCOME-TAX> 1,157,000
<INCOME-CONTINUING> 1,795,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,795,000
<EPS-PRIMARY> 1.46
<EPS-DILUTED> 1.44
</TABLE>
