SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(MARK ONE)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
----- EXCHANGE ACT OF 1934
For the quarter ended SEPTEMBER 30, 1999.
OR
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 0-14870
-------
QUIPP, INC.
-----------
(Exact name of registrant as specified in its charter)
FLORIDA 59-2306191
- ------------------------------- ----------------------------------
(State or other jurisdiction of (I.R.S.Employer Identification No.)
incorporation or organization)
4800 N.W. 157TH STREET, MIAMI, FLORIDA 33014
--------------------------------------------
(Address of principal executive offices)
Registrant's telephone number, including area code (305) 623-8700
--------------
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 (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
----- ------
The number of shares of the registrant's common stock $.01 par value,
outstanding at September 30, 1999 was 1,885,144.
1
<PAGE>
QUIPP, INC.
INDEX
<TABLE>
<CAPTION>
PART I - FINANCIAL INFORMATION PAGE
<S> <C> <C>
Item 1 - Consolidated Financial Statements
Consolidated Balance Sheets -
September 30, 1999 and December 31, 1998 3
Consolidated Statements of Income - Three months ended
September 30, 1999 and 1998, and Nine months ended
September 30, 1999 and 1998 4
Consolidated Statements of Cash Flows - Nine months
ended September 30, 1999 and 1998 5
Notes to Consolidated Financial Statements 6-7
Item 2 - Management's Discussion and Analysis of
Financial Condition and Results of Operations 8-11
Item 3 - Quantitative and Qualitative Disclosure about Market Risk 11-12
PART II - OTHER INFORMATION
Item 4 -Exhibits and Reports on Form 8-K 13
</TABLE>
2
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS
QUIPP INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<TABLE>
<CAPTION>
SEPTEMBER 30, 1999 DECEMBER 31, 1998
------------------ -----------------
<S> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents $ 406,029 $ 1,820,956
Securities available for sale - current 9,471,527 18,460,331
Accounts receivable, net 5,984,557 4,388,385
Inventories 3,536,979 2,989,950
Deferred tax asset - current 814,899 814,899
Prepaid expenses and other receivables 768,026 479,761
------------ ------------
TOTAL CURRENT ASSETS 20,982,017 28,954,282
Other assets:
Property, plant and equipment, net 1,932,082 1,837,161
Goodwill 382,447 405,861
Other assets 75,742 80,782
------------ ------------
TOTAL ASSETS $ 23,372,288 $ 31,278,086
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long term debt $ 100,000 $ 100,000
Accounts payable 1,233,882 1,425,757
Accrued salaries and wages 725,372 697,136
Deferred revenues 3,184,372 3,439,314
Income tax payable 279,223 167,704
Contract contingencies 829,646 596,397
Other accrued liabilities 1,325,196 1,407,493
------------ ------------
TOTAL CURRENT LIABILITIES 7,677,691 7,833,801
Noncurrent liabilities:
Long-term debt 950,000 950,000
------------ ------------
TOTAL LIABILITIES 8,627,691 8,783,801
Shareholders' equity:
Common stock - par value $.01 per share, 8,000,000
shares authorized. 1,885,144 and 1,644,994 shares issued
in 1999 and 1998, respectively. 18,852 16,450
Paid-in capital 8,632,356 5,800,581
Retained earnings 6,093,389 16,677,254
------------ ------------
TOTAL SHAREHOLDERS' EQUITY 14,744,597 22,494,285
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 23,372,288 $ 31,278,086
============ ============
</TABLE>
See accompanying notes to the consolidated financial statements.
3
<PAGE>
QUIPP INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 1999 SEPTEMBER 30, 1998 SEPTEMBER 30, 1999 SEPTEMBER 30, 1998
------------------ ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
Net sales $ 7,914,975 $ 7,147,024 $ 23,354,594 $ 19,981,746
Cost of sales 4,993,952 4,358,496 15,055,754 12,289,661
------------ ------------ ------------ ------------
GROSS PROFIT 2,921,023 2,788,528 8,298,840 7,692,085
Other operating income and expense items:
Selling, general and administrative expenses 1,333,503 1,410,404 4,166,051 4,097,727
Research and development expense 100,950 158,568 612,428 509,486
------------ ------------ ------------ ------------
OPERATING PROFIT 1,486,570 1,219,556 3,520,361 3,084,872
------------ ------------ ------------ ------------
Other income and expense:
Interest income 113,645 163,892 454,965 456,856
Interest expense (8,990) (14,028) (26,165) (36,174)
------------ ------------ ------------ ------------
104,655 149,864 428,800 420,682
------------ ------------ ------------ ------------
Income before income taxes 1,591,225 1,369,420 3,949,161 3,505,554
Income tax 502,380 475,021 1,337,018 1,211,134
------------ ------------ ------------ ------------
NET INCOME $ 1,088,845 $ 894,399 $ 2,612,143 $ 2,294,420
============ ============ ============ ============
PER SHARE AMOUNTS:
Basic income per common share 0.58 0.54 1.45 1.41
Diluted income per common share 0.57 0.52 1.41 1.34
Basic number of common and common
equivalent shares outstanding 1,885,144 1,643,864 1,801,613 1,625,890
Weighted average number of common
and common equivalent shares outstanding 1,898,389 1,720,905 1,849,487 1,709,066
</TABLE>
See accompanying notes to the consolidated financial statements.
4
<PAGE>
QUIPP INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
FOR THE NINE MONTHS ENDED
September 30, 1999 September 30, 1998
------------------ ------------------
<S> <C> <C>
Cash provided by operations:
Net income $ 2,612,143 $ 2,294,420
------------ ------------
Reconciliation of net income to net cash
provided by operations:
Depreciation and amortization 168,982 276,413
Changes in operational assets and liabilities:
Accounts receivable, net (1,596,172) (475,943)
Inventories (547,030) 342,524
Other assets, prepaid expenses and other receivables (283,225) (266,074)
Accounts payable and other accrued liabilities (245,935) 72,599
Deferred revenues (254,942) 309,691
Contract contingencies 233,248 --
Income tax payable 111,518 387,357
------------ ------------
Net cash provided by operations 198,587 2,940,987
------------ ------------
Cash flow from investing activities:
Securities available for sale, net 8,988,804 (3,716,026)
Capital expenditures (240,487) (112,426)
------------ ------------
Net cash provided by (used in) investing activities 8,748,317 (3,828,452)
------------ ------------
Cash flow from financing activities:
Special dividend paid on common stock (13,196,008) --
Exercise of stock options 2,834,177 443,250
------------ ------------
Net cash (used in) provided by financing activities (10,361,831) 443,250
------------ ------------
Decrease in cash and cash equivalents (1,414,927) (444,215)
Cash and cash equivalents at the beginning of the year 1,820,956 822,573
------------ ------------
Cash and cash equivalents at the end of the quarter $ 406,029 $ 378,358
============ ============
SUPPLEMENTAL DISCLOSURE OF CASH PAYMENTS MADE FOR:
Interest $ 23,357 $ 32,688
Income Taxes 1,225,000 1,160,566
</TABLE>
See accompanying notes to the consolidated financial statements.
5
<PAGE>
QUIPP, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1 - BASIS OF PRESENTATION
The accompanying consolidated financial statements are unaudited and include the
accounts of Quipp, Inc. and Quipp Systems, Inc. (a wholly owned subsidiary). All
significant intercompany transactions have been eliminated in consolidation. The
accompanying consolidated financial statements have been prepared on a basis
consistent with that used as of and for the year ended December 31, 1998 and, in
the opinion of management, reflect all adjustments (principally consisting of
normal recurring accruals) considered necessary to present fairly the financial
position of Quipp, Inc. as of September 30, 1999, and the results of its
operations for the three and nine months ended September 30, 1999 and the cash
flows for the nine months ended September 30, 1999. The results of operations
for the three and nine months ended September 30, 1999 are not necessarily
indicative of the results to be expected for the full year ending December 31,
1999. These financial statements have been prepared in accordance with generally
accepted accounting principles for interim financial information and the
instructions of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. The consolidated Balance Sheet at December
31, 1998 was derived from audited financial statements, but does not include all
disclosures required by generally accepted accounting principles. Certain
previously reported amounts have been reclassified to conform to the current
period's presentation.
NOTE 2 - INVENTORIES
Inventories at September 30, 1999 include material, labor and factory overhead
and are stated at the lower of cost or market. Cost is determined using the
first-in, first-out (FIFO) method. The composition of inventories at September
30, 1999 and December 31, 1998 is as follows:
September 30, 1999 December 31, 1998
- ------------------------------------------------------------------------------
Raw Materials $2,160,670 $2,616,640
Work In Process 1,271,900 179,388
Finished Goods 104,409 193,922
----------------------------------------
$3,536,979 $2,989,950
NOTE 3 - EARNINGS PER COMMON AND COMMON EQUIVALENT SHARES
Earnings per share amounts are based upon the weighted average number of common
and common equivalent shares outstanding during the year. Common equivalent
shares are excluded from the computation in periods in which they have an
anti-dilutive effect. Basic EPS excludes all dilution, and is based upon the
weighted average number of common shares outstanding during the period. Diluted
EPS reflects the potential dilution that would occur if options, warrants,
convertible securities or other contracts to issue common stock were exercised
or converted into common stock.
6
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NOTE 4 - COMPREHENSIVE INCOME
As of January 1, 1998, the Company adopted the Financial Accounting Standards
Board's Statement of Financial Accounting Standards No. 130, "Reporting
Comprehensive Income" (SFAS 130). This statement establishes standards for
reporting and display of comprehensive income and its components in a full set
of general-purpose financial statements. It does not, however, specify when to
recognize or how to measure items that make up comprehensive income. SFAS 130
was issued to address the concerns over the practice of reporting elements of
comprehensive income directly in equity. Adoption of this statement did not have
a material impact on the Company's financial statements.
NOTE 5 - CONTINGENCIES
In the normal course of business, the Company is exposed to litigation,
including asserted and unasserted claims. In the opinion of management, the
resolution of these matters would not have a material adverse effect on the
Company's financial position, results of operations or liquidity.
7
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
RESULTS OF OPERATIONS: The following table presents statements of income items
expressed as a percentage of net sales for the periods indicated:
<TABLE>
<CAPTION>
Three Months Ended, Nine Months Ended,
September 30, September 30,
-------------------------------- -------------------------------------
1999 1998 1999 1998
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
------------ -------------- --------------- ----------------
<S> <C> <C> <C> <C>
Net sales 100.0% 100.0% 100.0% 100.0%
Gross profit 36.9% 39.0% 35.5% 38.5%
Selling, general and
administrative expenses 16.8% 19.7% 17.8% 20.5%
Research and development 1.3% 2.2% 2.6% 2.5%
Interest income 1.4% 2.3% 1.9% 2.3%
Net income 13.8% 12.5% 11.2% 11.5%
</TABLE>
THREE MONTHS ENDING SEPTEMBER 30, 1999
NET SALES for the three months ended September 30, 1999 were $7,914,975, an
increase of $767,951 (10.7%) over net sales of $7,147,024 in the same period of
the prior year. The increase in net sales was due to stronger domestic sales.
GROSS PROFIT for the three-month period ended September 30, 1999 was $2,921,023,
an increase of $132,495 (4.8%) as compared to $2,788,528 for the corresponding
period in 1998. The decrease of gross profit as a percentage of net sales was
attributable to a higher percentage of original equipment manufacturers (OEM)
equipment sales, which generally have lower margins than products manufactured
by the Company.
SELLING, GENERAL AND ADMINISTRATIVE expenses for the three months ended
September 30, 1999 were $1,333,503, a decrease of $76,901 (5%) as compared to
$1,410,404 for the corresponding period of 1998. The decrease reflects reduced
spending for legal and accounting fees. In 1998, the Company incurred legal and
accounting fees in connection with an aborted business combination transaction
and patent infringement litigation that the Company brought against another
company. The litigation settled in 1998.
RESEARCH AND DEVELOPMENT expenses for the three months ended September 30, 1999
were $100,950, a decrease of $57,618 (36.3%) as compared to $158,568 for the
corresponding period in 1998. The decrease reflects reduced spending for the
Company's new palletizer and gripper conveyer products, which are in the later
stages of development.
INTEREST INCOME for the three months ended September 30, 1999 was $113,645 as
compared to $163,892 for the same period in 1998. The decrease in interest
income reflects lower cash and cash equivalents and securities available for
sale during the third quarter of 1999 due to payment of a $13,196,008 special
dividend in May 1999.
8
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NINE MONTHS ENDING SEPTEMBER 30, 1999
NET SALES for the nine months ended September 30, 1999 were $23,354,594, an
increase of $3,372,848 (16.9%) over net sales of 19,981,746 in the same period
of the prior year. The increase in net sales for the nine months period was
primarily due to stronger domestic sales.
GROSS PROFIT for the nine months ended September 30, 1999 was $8,298,840, an
increase of $606,755 (7.9%) as compared to $7,692,085 for the corresponding
period in 1998. The decrease in gross profit as a percentage of net sales is
primarily due to a higher percentage of sales of original equipment
manufacturers (OEM) equipment, which generally have lower margins than products
manufactured by the Company.
SELLING, GENERAL AND ADMINISTRATIVE expenses for the nine months ended September
30, 1999 were $4,166,051, an increase of $68,324 (1.7%) as compared to
$4,097,727 for the corresponding period in 1998. As a percentage of sales,
selling, general and administrative expenses decreased from 20.5% to 17.8%. The
decrease reflects reduced spending for legal and accounting fees. In 1998, the
Company incurred legal and accounting fees in connection with an aborted
business combination and patent infringement litigation that the Company brought
against another company. The litigation settled in 1998.
RESEARCH AND DEVELOPMENT expenses for the nine months ended September 30, 1999
were $612,428, an increase in of $102,942 (20.2%) as compared to $509,486 for
the corresponding period of 1998. The increase was primarily due to the costs
related to the development of the Company's new palletizer and the gripper
conveyer, which were incurred principally during the first and second quarter of
1999.
INTEREST INCOME for the nine months ended September 30, 1999 was $454,965 as
compared to $456,856 for the same period in 1998. The decrease in interest
income was attributable to lower average balances of cash and cash equivalents
and securities available for sale as a result of the $13,196,008 special
dividend paid in May 1999.
GENERAL
The order backlog as of September 30 1999 was $10,119,131 compared to
$10,556,480 at December 31, 1998 and $6,487,503 at September 30 1998. The
company expects to ship all backlog within the next twelve months.
LIQUIDITY
Cash, and cash equivalents and securities available for sale totaled $9,877,556
compared to $20,281,287 at December 31, 1998, a decrease of $10,403,731 or
51.3%. This decrease was primarily due to the payment to our shareholders of the
special dividend of $13,196,008 on May 10, 1999. This decrease was partially
offset by $2,834,177 received upon the exercise of stock options. Working
capital on September 30, 1999 was $13,304,326, an increase of $1,026,673 from
$12,277,653 at June 30, 1999. This increase principally reflects the Company's
net income of $1,088,846 for the three months ended September 30, 1999. The
Company believes that the cash, cash equivalents and securities available for
sale, together with cash generated from operations will be sufficient to fund
operations at current levels.
9
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YEAR 2000
The Year 2000 issue is the result of computer programs being written using two
digits rather than four to define the applicable year. In other words, date
sensitive software may recognize a date using "00" as the year 1900 rather than
the year 2000. This could result in system failures or miscalculations causing
disruptions of operations, including, among others, a temporary inability to
process transactions, send invoices or engage in similar normal business
activities.
The Company has been engaged in an evaluation of its Year 2000 readiness about
its information technology and non-information technology systems. In addition,
the Company has analyzed its products as they relate to the Year 2000 issue. The
Company has also attempted to analyze Year 2000 issues relating to third parties
with which the Company has a business relationship. The status of the Company's
efforts is as follows:
INTERNAL SYSTEMS AND PRODUCTS
INFORMATION TECHNOLOGY SYSTEMS - The Company's software supplier has advised the
Company that the manufacturing and accounting software used by the Company is
Year 2000 compliant. In addition, the Company's AS400 operating system has been
upgraded, and the Company has received correspondence from the vendor stating
that the software is Year 2000 compliant. The Company began testing its
manufacturing, accounting and operating system during the fourth quarter of
1998. Based upon the results of the Company's testing, and correspondence
received from its software supplier, the Company believes its manufacturing,
accounting, and operating systems are year 2000 compliant.
The Company's manufacturing department was using a computerized data collection
system to record labor time and attendance. This system was not Year 2000
compliant. The Company replaced the software and related hardware in February of
1999 with software and hardware that is certified by the manufacturer to be Year
2000 compliant.
NON-INFORMATION TECHNOLOGY SYSTEMS - The Company's heating, cooling, ventilation
and alarm systems include microprocessor-based components. The heating, cooling
and ventilation systems suppliers have advised the Company that these systems
are not date sensitive. The alarm system was replaced in November 1998 with a
system certified by the manufacturer to be year 2000 compliant.
PRODUCTS - The Company's products are not materially date sensitive. Moreover,
products currently manufactured that have time and date functions are Year 2000
compliant and product notification bulletins have been sent to the customers
regarding Year 2000 issues. Therefore, the Company does not believe it has any
material exposure about its products as a result of the Year 2000 issue.
COSTS OF YEAR 2000 COMPLIANCE - The Company's Year 2000 compliance costs to date
have been approximately $50,000. The Company does not anticipate any additional
material costs relating to Year 2000 compliance.
YEAR 2000 ISSUES RELATING TO THIRD PARTIES
VENDORS - The Company utilizes approximately 360 vendors to supply parts,
materials and components for its various products. The Company has surveyed its
major vendors regarding their Year 2000 status. Several vendors have supplied
letters to the Company stating that they
10
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are either Year 2000 compliant or that they would be Year 2000 compliant by
December 31, 1999. However, the Company is unable to verify this information,
and it is possible that advice received from vendors may be erroneous. Moreover,
certain vendors have not responded to the Company's request for information and
may not be Year 2000 compliant. Nevertheless, the Company believes alternative
sources of supply are available for all required components. Therefore, absent
widespread difficulties affecting several critical vendors, the Company does not
anticipate that vendors' Year 2000 issues would have a material adverse effect
on the Company. In addition, some machine parts could be manufactured in the
Company's in-house machine shop.
The Company has received verbal verification from several of its freight
providers that they are Year 2000 compliant. However, the Company is unable to
verify this information. The Company is not currently aware of the Year 2000
readiness of certain outside service companies, such as telecommunications or
utility providers. The failure of these providers to be Year 2000 compliant
could have a material adverse effect on the Company, which is not currently
quantifiable. In the worst case, the Company's operations could be seriously
disrupted.
CUSTOMERS - The Company's customer base typically changes significantly from
year to year. Since the Company's equipment is designed to have an extended
life, significant repeat orders are not received on a regular basis. As a
result, the Company is unable to predict the identity of most of its major
customers in the Year 2000 and thereafter. Therefore, the Company has not made
an inquiry as to whether the customers' computer driven payment or purchasing
processes is Year 2000 compliant. A customer's Year 2000 issues could cause a
delay in receipt of purchase orders or payment. If Year 2000 issues are
widespread among the Company's customers, the Company's sales and cash flow
could be materially adversely affected.
FORWARD LOOKING STATEMENTS
The statements contained above regarding the shipment of backlog during the next
twelve months; third party statements regarding Year 2000 readiness of their
products, services and systems; costs of Year 2000 measures; consequences of the
failure of Company products and systems, and outside parties to be Year 2000
compliant; and other Year 2000 related matters are forward looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995. A
number of important factors could cause actual results to differ materially from
those in the forward looking statements including, among others, economic
conditions generally and specifically in the newspaper industry, change in
product demand, delays in shipment, cancellation of customer orders,
unanticipated hardware or software problems in connection with upgrades,
unavailability of vendors to replace vendors having Year 2000 difficulties,
inability of the Company to internally fabricate some machine parts and
unanticipated costs of Year 2000 measures.
ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
MARKET RISK
The Company is exposed to various types of market risk, including changes in
interest rates. Market risk is the potential loss arising from adverse changes
in market rates and prices, such as interest rates. The Company does not enter
derivatives or other financial instruments for trading or speculative purposes.
The Company's cash and investments exceed short and long-term debt, therefore,
the exposure to interest rates relates primarily to its investment portfolios.
11
<PAGE>
Due to the short-term maturities of the Company's investments, management
believes that there is no significant risk arising from interest rate
fluctuations. The Company is actively managing the investment portfolios to
increase return on investments, but in order to ensure liquidity, only invests
in instruments with credit quality and where a secondary market exists. The
counterparties are major financial institutions and government agencies. The
Company's investment portfolios did not materially change from June 30, 1999 to
September 30,1999.
12
<PAGE>
PART II - OTHER INFORMATION
ITEM 4 - EXHIBITS AND REPORTS ON FORM 8-K
(a) EXHIBIT NO. DESCRIPTION OF EXHIBIT
----------- ----------------------
(27) Financial Data Schedule
(b) No reports on form 8-K were filed during the quarter for which this
report is filed.
13
<PAGE>
SIGNATURE
Pursuant to 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.
QUIPP, INC.
Date: November 12, 1999 By: /s/ Anthony P. Peri
-----------------------
Anthony P. Peri
President and Chief Executive Officer
By: /s/ Jeffrey S. Barocas
---------------------------
Jeffrey S. Barocas
Chief Financial Officer and Treasurer
14
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Quipp, Inc.,
Quarterly Report on Form 10-Q for the quarter ended September 30, 1999 and is
qualified In its entirety by reference to the Form 10-Q.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> SEP-30-1999
<CASH> 406,029
<SECURITIES> 9,471,527
<RECEIVABLES> 6,205,477
<ALLOWANCES> 220,920
<INVENTORY> 3,536,979
<CURRENT-ASSETS> 20,982,017
<PP&E> 4,232,294
<DEPRECIATION> 2,300,212
<TOTAL-ASSETS> 23,372,288
<CURRENT-LIABILITIES> 7,677,691
<BONDS> 950,000
0
0
<COMMON> 18,851
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 23,372,288
<SALES> 23,354,594
<TOTAL-REVENUES> 23,354,594
<CGS> 15,055,754
<TOTAL-COSTS> 19,834,233
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 26,165
<INCOME-PRETAX> 3,949,161
<INCOME-TAX> 1,337,018
<INCOME-CONTINUING> 2,612,143
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,612,143
<EPS-BASIC> 1.45
<EPS-DILUTED> 1.41
</TABLE>
