<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES AND EXCHANGE ACT OF 1934
-------------------------------------------
FOR QUARTER ENDED, MARCH 31,1999
COMMISSION FILE NUMBER 0-14358
-------
PARIS CORPORATION
-----------------
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
PENNSYLVANIA 23-1645493
------------ ----------
(STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
122 KISSEL ROAD, BURLINGTON, NEW JERSEY 08016
---------------------------------------------
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE 609-387-7300
------------
INDICATE BY CHECK MARK WHETHER THE REGISTRANT (1) HAS FILED ALL REPORTS
REQUIRED TO BE FILED BY SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF
1934 DURING THE PRECEDING 12 MONTHS AND (2) HAS BEEN SUBJECT TO SUCH FILING
REQUIREMENTS FOR THE PAST 90 DAYS.
YES |X| NO |_|
NUMBER OF SHARES OUTSTANDING AS OF MARCH 31,1999
COMMON STOCK 3,937,517
<PAGE>
PARIS CORPORATION
CONTENTS
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements (Unaudited): PAGE
Consolidated Balance Sheets - March 31, 1999
and September 30, 1998 (audited)..............................3
Consolidated Statements of Income
Three months ended, March 31, 1999 and 1998
Six months ended, March 31, 1999 and 1998.....................4
Consolidated Statements of Cash Flows -
Six months ended, March 31, 1999 and 1998.....................5
Consolidated Statement of Changes in Stockholders'
Equity - September 30, 1998 and March 31, 1999................6
Notes to Consolidated Condensed Financial Statements..........7
ITEM 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations............8 - 12
PART II. OTHER INFORMATION (Items 1 through 5 - not applicable)
ITEM 6. Exhibits and Reports on Form 8-K.............................12
Signatures of Registrant.....................................13
2
<PAGE>
PARIS CORPORATION
CONSOLIDATED BALANCE SHEET
(in thousands)
ASSETS
3-31-99 9-30-98
(Unaudited) (Audited)
----------- ---------
Current assets:
Cash and cash equivalents $ 1,679 $ 4,073
Restricted cash 0 2,140
Investments:
Marketable securities 2,002 1,467
Other 2,957 2,904
Accounts receivable 5,354 3,664
Inventories 4,301 3,456
Prepaid expenses 249 225
Deferred income taxes 136 136
-------- --------
Total current assets 16,678 18,065
Property and equipment, net 1,600 1,561
Deferred tax asset 786 786
Other assets 174 158
-------- --------
Total Assets $ 19,238 $ 20,570
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Note payable, bank $ 0 $ 2,459
Accounts payable and accrued expenses 3,883 2,302
Accrued payroll and related expenses 370 264
Income taxes payable 239 238
Deferred revenue 357 375
-------- --------
Total current liabilities 4,849 5,638
Deferred revenue, net of current portion 397 576
-------- --------
Total Liabilities 5,246 6,214
-------- --------
Commitments:
Shareholders' equity:
Common stock 16 16
Additional paid in capital 8,588 8,588
Retained earnings 7,447 7,797
Accumulated other comprehensive income (106) (163)
Treasury stock (1,953) (1,882)
-------- --------
Total Shareholders' equity 13,992 14,356
-------- --------
Total Liabilities and Shareholders' Equity $ 19,238 $ 20,570
======== ========
See Accompanying Notes
3
<PAGE>
PARIS CORPORATION
CONSOLIDATED STATEMENT OF INCOME
Unaudited
(in thousands, except per share data)
<TABLE>
<CAPTION>
THREE THREE SIX SIX
MONTHS MONTHS MONTHS MONTHS
ENDED ENDED ENDED ENDED
3-31-99 3-31-98 3-31-99 3-31-98
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net Sales $ 9,815 $ 8,227 $ 17,802 $ 17,632
Cost of products sold 8,506 7,308 15,536 16,159
----------- ----------- ----------- -----------
Gross profit 1,309 919 2,266 1,473
----------- ----------- ----------- -----------
Selling expenses 429 430 870 875
General and administrative expenses 555 561 1,051 1,145
Interest expense 15 77 58 161
Gain on sale of building (89) 0 (178) 0
Other (income) expense (48) (167) (136) (264)
----------- ----------- ----------- -----------
Income (loss) before taxes 447 18 601 (444)
Provision (benefit) for income taxes 188 6 240 (151)
----------- ----------- ----------- -----------
Net Income (loss) $ 259 $ 12 $ 361 $ (293)
=========== =========== =========== ===========
Weighted average common and 3,535,645 3,552,645 3,535,645 3,552,645
equivalent shares outstanding
Earnings (Loss) per share - basic $ 0.07 $ 0.003 $ 0.10 $ (0.08)
=========== =========== =========== ===========
Earnings (Loss) per share - diluted $ 0.07 $ 0.003 $ 0.10 $ (0.08)
=========== =========== =========== ===========
</TABLE>
See Accompanying Notes
4
<PAGE>
PARIS CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited
<TABLE>
<CAPTION>
(in thousands) SIX MONTHS SIX MONTHS
ENDED ENDED
3-31-99 3-31-98
---------- ----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (loss) $ 361 $ (293)
------- -------
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:
Depreciation 273 455
Gain on sale of property, and equipment (178) (58)
(Gain) loss on sale of investments 53 (124)
Equity in limited partnership interests (54) 0
Provision for bad debts 60 50
Deferred income tax (benefit) expense 0 75
(Increase) decrease in assets:
Accounts receivable (1,750) 875
Inventories (845) 798
Recoverable income taxes 0 (232)
Prepaid expenses (24) 1
Other assets (16) 34
Increase (decrease) in liabilities:
Accounts payable and accrued expenses 1,384 (449)
Accrued payroll and related expenses 106 (31)
Income taxes payable 1 0
------- -------
Total adjustments (990) 1,394
------- -------
Net cash provided by (used in) operating activities (629) 1,101
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Decrease in restricted cash 2,140 0
Proceeds from sale of investments 414 121
Purchase of investments (944) (682)
Purchase of property and equipment (134) (295)
Proceeds from sale of property and equipment 0 58
------- -------
Net cash provided by (used in) investing activities 1,476 (798)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Sales of treasury stock 21 0
Purchase of treasury stock (92) (146)
Dividend Paid (711) 0
Repayments of note payable, bank (2,459) (798)
------- -------
Net cash provided by (used in) financing activities (3,241) (944)
Net decrease in cash and cash equivalents (2,394) (641)
Cash and cash equivalents, at beginning of period 4,073 2,742
------- -------
Cash and cash equivalents, at end of period $ 1,679 $ 2,101
======= =======
Supplemental disclosures of cash flow information:
Cash paid for interest expense $ 58 $ 161
Cash paid for income taxes $ 241 $ 0
</TABLE>
See Accompanying Notes
5
<PAGE>
PARIS CORPORATION
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDRES' EQUITY
FOR THE YEAR ENDED SEPTEMBER 30, 1998 AND SIX MONTH ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
Accumulated
Other
Common Stock Additional Retained Comprehensive
Shares Amount Paid in Capital Earnings Income
------ ------ --------------- -------- ------
<S> <C> <C> <C> <C> <C>
Balance at October 1, 1997 3,937,517 $ 15,751 $8,588,243 $7,812,962 $ 24,070
COMPREHENSIVE INCOME:
Net loss (15,781)
Other comprehensive income,
Unrealized loss on securities,
net of reclassification adjustment
of gains included in net income (187,482)
-----------------------------------------------------------------------
Comprehensive income
Purchase of 86,786 treasury shares
Sales of 12,000 treasury shares
Balance at September 30, 1998 3,937,517 $ 15,751 $8,588,243 $7,797,181 $(163,412)
--------- --------- ---------- ---------- ---------
Net Income 360,822
Other comprehensive income,
Unrealized gain on securities, net of
reclassification adjustment of gains
included in net income 56,944
-----------------------------------------------------------------------
Comprehensive income
Purchase of 40,400 treasury shares
Sale of 10,400 treasury shares
Dividend Paid (711,055)
-----------------------------------------------------------------------
Balance at March 31, 1999 3,937,517 $ 15,751 $8,588,243 $7,446,948 $(106,468)
<CAPTION>
Treasury Stock
Shares Amount Total
------ ------ -----
<S> <C> <C> <C>
Balance at October 1, 1997 (308,086) $(1,739,736) $14,701,290
COMPREHENSIVE INCOME:
Net loss (15,781)
Other comprehensive income,
Unrealized loss on securities,
net of reclassification adjustment
of gains included in net income (187,482)
-------------------------------------
Comprehensive income (203,263)
-----------
Purchase of 86,786 treasury shares (86,786) (166,501) (166,501)
Sales of 12,000 treasury shares 12,000 24,000 24,000
Balance at September 30, 1998 (382,872) $(1,882,237) $14,355,526
-------- ----------- -----------
Net Income 360,822
Other comprehensive income,
Unrealized gain on securities, net of
reclassification adjustment of gains
included in net income 56,944
-------------------------------------
Comprehensive income
417,766
-----------
Purchase of 40,400 treasury shares (40,400) (91,863) (91,863)
Sale of 10,400 treasury shares 10,400 21,500 21,500
Dividend Paid (711,055)
-------------------------------------
Balance at March 31, 1999 (412,872) $(1,952,600) $13,991,874
</TABLE>
6
<PAGE>
PARIS CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
ACCOUNTING POLICIES:
1. The accompanying unaudited interim consolidated financial statements were
prepared in accordance with generally accepted accounting principles for
interim financial information. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting
principles for complete financial statements. The Summary of Accounting
Policies and Notes to Consolidated Financial Statements included in the
September 30, 1998 Form 10-K should be read in conjunction with the
accompanying statements. These statements include all adjustments
(consisting only of normal recurring accruals) which the Company believes
necessary for a fair presentation of the statements. The interim operating
results are not necessarily indicative of the results for a full year.
2. The Company has agreements with certain customers and vendors which
include potential rebates, commissions, and other liabilities upon the
fulfillment of certain terms and conditions. Management had estimated and
recorded contingent liabilities of approximately $54,000 as of September
30, 1998 related to these agreements and other potential liabilities.
During the six months ended March 31, 1999, management increased the
liability to $66,000, reflecting higher obligations.
3. The Company has adopted FASB #128, "Earnings Per Share" as required. Due
to the anti-dilutive effect of employee stock options outstanding in the
computation of earnings per share, basic and fully diluted earnings per
share are identical.
4. The Company adopted Statement of Financial Accounting Standards No. 130,
"Reporting Comprehensive Income" ("SFAS no. 130"). SFAS No. 130
established new standards for reporting and display of comprehensive
income and its components. Comprehensive income consists of net income and
unrealized gains and loses on certain investments in marketable debt and
equity securities and its presented in the statement of changes in
stockholders' equity. The adoption of SFAS No. 130 had no effect on the
Company's net income or equity.
5. Inventories consist of the following at March 31, 1999 and September 30,
1998:
3/31/99 9/30/98
---------- ----------
Raw Materials $1,118,365 $ 819,331
Work in Progress 41,200 47,594
Finished Goods 3,141,706 2,588,874
---------- ----------
$4,301,271 $3,455,799
========== ==========
7
<PAGE>
PARIS CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
MARCH 31, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Three Months Six Months
- ------------------------------------------------------------------------------------------------------------------------------------
$ % $ %
1999 1998 Change Change 1999 1998 Change Change
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Sales $9,815 $8,227 $1,588 19% $17,802 $17,632 $ 170 1%
- ------------------------------------------------------------------------------------------------------------------------------------
Cost of sales 8,506 7,308 1,198 16% 15,536 16,159 (623) -4%
- ------------------------------------------------------------------------------------------------------------------------------------
Gross profit 1,309 919 390 42% 2,266 1,473 793 54%
- ------------------------------------------------------------------------------------------------------------------------------------
Selling 429 430 (1) 0% 870 875 (5) -1%
- ------------------------------------------------------------------------------------------------------------------------------------
General and administrative expenses 555 561 (6) -1% 1,051 1,145 (94) -8%
- ------------------------------------------------------------------------------------------------------------------------------------
Interest expense 15 77 (62) -81% 58 161 (103) -64%
- ------------------------------------------------------------------------------------------------------------------------------------
Other (income) expense (137) (167) 30 -18% (314) (264) (50) 19%
- ------------------------------------------------------------------------------------------------------------------------------------
Pretax income (loss) 447 18 429 2383% 601 (444) 1,045 -235%
- ------------------------------------------------------------------------------------------------------------------------------------
Income taxes 188 6 182 3033% 240 (151) 391 -259%
- ------------------------------------------------------------------------------------------------------------------------------------
Net income (loss) $ 259 $ 12 $ 247 2058% $ 361 $ (293) $ 654 -223%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Gross Profit
Three Months Comparison
Gross profit for the three months ended March 31, 1999 of $1309M increased $390M
as compared to the same quarter in the prior year. Sales of $9815M increased
$1588M or 19% and cost of sales of $8506M increased $1198M or 16%.
Sales factors
Sales of stock continuous forms of $3351M decreased $911M or 21% due a decline
in unit volume of 11% and a decrease in the average sell price of approximately
10%.
Value-added products distributed through the retail channel reported strong
second quarter revenue. Sales increased $1560M or 159% from the comparable
quarter last year, growing from $982M to $2542M. The increase can be attributed
to an increased customer base and product line. In addition, the Company shipped
a non-recurring order in the amount of $627M to their largest customer in
relation to a special promotion.
The sales of mill dropped commodity cut sheets increased $238M, or 20% from
$1176M to $1415. The increase can be attributed to an increase in unit volume of
11% and an increase in average sell price of 9%.
8
<PAGE>
Sales of the Company's Laser3, DocuGard and HCFA product lines have increased
$327M or 75%. The increase is indicative of the Company's increased focus on
these product lines, including sales and marketing promotions.
The sales of custom products increased $118M or 7% from the same quarter last
year. Revenue from custom cutsheets increased $165M while custom forms declined
$47M, indicative of the market trend.
Sales of miscellaneous products increased $233M on the strength of shipments of
our poly-products line.
Sales returns discounts and allowances of $128M decreased $162M. The decision to
exit the hardware business has led to the decrease in product returns.
Cost factors
The cost of stock continuous form sales of $2879 decreased $912M or 24%
relatively proportionate to the sales decline. In addition, favorable paper
prices contributed to the decline in costs.
Value-added retail product costs increased $1107M or 156% consistent with the
increase in product sales.
The cost of sales for mill dropped commodity cut sheets increased $89M, or 8%,
disproportionate to the increase in sales. The average cost per unit declined
approximately 2%. The gain in gross margin was a result of the higher average
sell price.
The cost of sales for the Company's Laser3, DocuGard and HCFA product lines have
increased $165M, or 47%. The increase is a result of the increase in
unit-volume, offset by a 23% decline in the average cost per unit as a result of
product mix.
Freight and distribution costs increased $188M or 45% in the second quarter
compared to last year. The increase is due to the increased sales volume and
higher warehousing costs of our mill dropped cut sheets.
Six Months Comparison
Gross profit for the six months ended March 31, 1999 of $2266M represented an
increase of $793M or 54% as compared to the same period in the prior year. Sales
of $17802M increased $170M or 1% and cost of sales of $15536M decreased $623M or
4%.
Sales factors
Sales of stock continuous forms decreased $2550M or 27% from $9324M to $6774M.
Unit volume decreased 19% and the average sell price declined approximately 9%.
Value-added retail sales were $3915M as compared to $2030M last year,
representing an increase of $1885M or 93%. In addition to the reasons stated in
the three month comparison, this increase is representative of the strong demand
from inkjet/laser printer users.
As stated in the three month comparison, the Company has increased its focus on
the Laser3, DoucGard and HCFA product lines. The result of this strategy is that
sales have increased $555M or 64% from $863M to $1418M for the six months ended
March 31, 1999.
The sales of custom products increased $89M or 2% from the same period last
year. Revenue from custom cutsheets increased $330M while custom forms declined
$241M.
9
<PAGE>
Sales returns, discounts and allowances have decreased $230M or 47% from $480M
to $250M for the same reasons as stated in the three month comparison.
Cost Factors
The cost of stock continuous forms sales decreased $2189 or 26%, consistent with
the sales decline.
Value-added retail product costs increased $1255M or 84%. The increase in costs
on a percentage basis are slightly trailing the accelerated sales rate. This is
reflective of our increased sales of higher margined products.
The cost of sales for mill dropped commodity cut sheets decreased $148M or 6%
despite an increase in sales volume of 3%. The discrepancy is due to the
increase in the average sell price along with favorable paper costs.
The cost of sales for Laser3, DocuGard and the HCFA product lines have increased
$273M or 40% for the same reasons as stated in the three month comparison.
Freight and distribution costs increased $75M or 7%.
Operating Expenses
Three Months Comparison
Operating expenses remained relatively flat on a quarter to quarter basis.
Selling expenses decreased from $430M to $429 and General and Administrative
expenses declined $6M from $561M to $555M.
Six Months Comparison
Operating expenses were reduced $99M or 5% for the six month period. Sales and
Marketing expenses were reduced $5M or 1%.
General and Administrative expenses decreased $94M or 8%. The decline is a
result of decreased salary and wages of $111M and lower depreciation expense of
$79M. Offsetting these decreases was an additional cost of $80K related to the
Y2K solution. Other sundry expenses increased $16M.
OTHER INCOME AND EXPENSES
Other income, net decreased $30M for the three months ended March 31, 1999 and
increased $50M for the six month period. During the three months ended March 31,
1999 investment related income decreased $75M offset by an increase of $31M in
income related to the amortization of the gain on the sale of the New Jersey
facility. During the six months ended March 31, 1999 investment related income
decreased $85M offset by the gain on the sale of the building of $120M.
10
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES:
Working capital decreased $598M from $12427 million to $11829 million and cash
and cash equivalents decreased $4534M during the six months ended March 31,
1999.
Net cash used in operating activities was $629M. Accounts receivable increased
$1750M due to the high volume of shipments in March. Inventories increased $845M
composed of an increase in finished goods of $553M, raw materials of $299M, and
a decline of work in process of $7M. Accounts payable and accrued expenses
increased $1384M reflecting higher liabilities due in part to the inventory
build.
Net cash provided by investing activities was $1476M due principally to the
decrease in restricted cash of $2140M. The cash is no longer restricted due to
the fact the Company paid down the bank loan relieving the bank of their
security interest in the money market account. The Company used $530M in cash to
purchase marketable securities and $134M was invested in property and equipment.
Net cash used in financing activities was $3241M. The bank line of credit
expired on January 31 1999 and the balance of $2459 was paid off. The Company
will meet future liquidity needs through cash provided by operations and
investing activities while more cost efficient methods of financing are sought
after and reviewed.
During the six months ended March 31, 1999, the Company declared and paid a
special dividend. The special dividend resulted in a reduction of stockholders
equity in the amount of $711M during the period.
In September 1998, the Company began a buy-back program of up to 100,000 shares
of its common stock at prevailing market prices. During the six months ended
March 31, 1999, the Company purchased approximately 40,000 shares at $92M,
offset by the distribution of approximately 10,000 shares of treasury stock at
$22M.
The Company entered into a purchase agreement for a new sheeter press. The press
will support the expansion of our Custom cut sheets and value added retail
papers. Delivery and installation is expected during July of 1999. The total
machine and installation cost will be approximately $700M. The Company plans to
meet this cash requirement internally.
The Company has conducted a comprehensive review of their computer systems to
identify the systems that could be affected by the "Year 2000" issue and has
developed an implementation plan to resolve the issues. Items that are being
addressed under the Company's "Year 2000" compliance program are as follows.
1) Replacement of the main business application software and hardware with
"Year 2000" compliant hardware and software.
2) Replacement of our Electronic Data Interchange application with "Year
2000" compliant software.
3) The upgrade of our automated call-processing and voice-mail software to a
"Year 2000" compliant release.
We believe all other manufacturing, computer systems and communications
equipment are "year 2000" compliant.
In October of 1998, the Company reached an agreement with a software vendor for
the purchase of the replacement of the main business application software. The
Company had the software installed and on site during January 1999 for the
commencement of the employee training program. The estimated cost of the
conversion project is $250M. Included in this estimate is $60M in training and
travel expenses, which will be
11
<PAGE>
charged against income in FY99. In addition to the conversion expense for the
business software, the Company will expend and estimated $45M for the upgrades
of our automated call-processing and voice-mail software.
The Company expects the conversion of the electronic Data Interchange
application and the automated call-processing/voice mail software will be
completed during FY99.
Currently the Company is unable to determine if the conversion of the main
business application software will be completed during FY99. The Company has
identified a contingency plan which will modify their current software to be
"Year 2000" compliant. The approximate cost of this program modification is $50M
and can be installed and tested during a period of two months.
The Company will complete a "Year 2000" compliance survey of all vendors by June
30, 1999, at which time alternative vendors will be identified if there is
exposure due to non "Year 2000" compliance.
PARIS CORPORATION
PART II
OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Computation of Primary Earnings Per Share
Average Number of Common Shares
Outstanding During the Period 3,535,645
=========
(b) Reports on Form 8-K
None.
12
<PAGE>
PARIS CORPORATION
SIGNATURES OF REGISTRANT
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.
PARIS CORPORATION
----------------------------------------
Dominic P. Toscani, Sr.
Chairman of
the Board of Directors
----------------------------------------
William L. Lomanno
Chief Financial Officer
DATE: May 12, 1999
13
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 1,679,221
<SECURITIES> 4,958,726
<RECEIVABLES> 5,815,022
<ALLOWANCES> 461,459
<INVENTORY> 4,301,270
<CURRENT-ASSETS> 16,678,000
<PP&E> 9,015,290
<DEPRECIATION> 7,415,012
<TOTAL-ASSETS> 19,238,000
<CURRENT-LIABILITIES> 4,849,000
<BONDS> 0
0
0
<COMMON> 16,000
<OTHER-SE> 13,976,000
<TOTAL-LIABILITY-AND-EQUITY> 19,238,000
<SALES> 9,815,000
<TOTAL-REVENUES> 9,815,000
<CGS> 8,506,000
<TOTAL-COSTS> 9,490,000
<OTHER-EXPENSES> (122,000)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 15,000
<INCOME-PRETAX> 447,000
<INCOME-TAX> 188,000
<INCOME-CONTINUING> 259,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 259,000
<EPS-PRIMARY> .07
<EPS-DILUTED> .07
</TABLE>
