UNITED STATES 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 quarterly period ended July 31, 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: 0-15535
LAKELAND INDUSTRIES, INC.
- --------------------------------------------------------------------------------
(Exact name of Registrant as specified in it's charter)
Delaware 13-3115216
- -------------------------------- ------------------------------------
(State of incorporation) (IRS Employer Identification Number)
711-2 Koehler Avenue, Ronkonkoma, New York 11779
- --------------------------------------------------------------------------------
(Address of principal executive offices)
(516) 981-9700
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
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
------- -------
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date:
Common Stock, $.01 par value, outstanding at
September 13, 1999 - 2,660,500 shares.
<PAGE>
LAKELAND INDUSTRIES, INC.
AND SUBSIDIARIES
FORM 10-Q
The following information of the Registrant and its subsidiaries is
submitted herewith:
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<CAPTION>
PART I - FINANCIAL INFORMATION:
Item 1. Financial Statements:
Page
----
<S> <C>
Introduction ....................................................................................1
Condensed Consolidated Balance Sheets - July 31, 1999 and January 31, 1999..........................2
Condensed Consolidated Statements of Income - Three Months
and Six Months Ended July 31, 1999 and 1998.........................................................3
Condensed Consolidated Statement of Stockholders' Equity
for the Six Months Ended July 31, 1999..............................................................4
Condensed Consolidated Statements of Cash Flows - Six Months
Ended July 31, 1999 and 1998........................................................................5
Notes to Condensed Consolidated Financial Statements................................................6
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations...............8
PART II - OTHER INFORMATION:
Item 6. Exhibits and Reports on Form 8-K....................................................................None
Signatures ...................................................................................10
</TABLE>
<PAGE>
LAKELAND INDUSTRIES, INC.
AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements:
Introduction
The condensed consolidated financial statements included herein have been
prepared by the Company, without audit, pursuant to the rules and regulations of
the Securities and Exchange Commission and reflect all adjustments which are, in
the opinion of management, necessary to present fairly the consolidated
financial information required therein. Certain information and note disclosures
normally included in financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted pursuant to such
rules and regulations, although the Company believes that the disclosures are
adequate to make the information presented not misleading. It is suggested that
these condensed consolidated financial statements be read in conjunction with
the consolidated financial statements and the notes thereto included in the
Company's Annual Report on Form 10-K filed with the Securities and Exchange
Commission for the year ended January 31, 1999.
The results of operations for the three-month and six-month periods ended
July 31, 1999 and 1998 are not necessarily indicative of the results to be
expected for the full year.
CAUTIONARY STATEMENTS
This report may include "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements are all statements other than
statements of historical fact included in this report, including, without
limitation, the statements under the heading "Management's Discussion and
Analysis of Financial Condition and Results of Operations" regarding the
Company's financial position and liquidity, the Company's strategic
alternatives, future capital needs, development and capital expenditures
(including the amount and nature thereof), future net revenues, business
strategies, and other plans and objectives of management of the Company for
future operations and activities.
Forward-looking statements are based on certain assumptions and analyses
made by the Company in light of its experience and its perception of historical
trends, current conditions, expected future developments and other factors it
believes are appropriate under the circumstances. These statements are subject
to a number of assumptions, risks and uncertainties, and factors in the
Company's other filings with the Securities and Exchange Commission (the
"Commission"), general economic and business conditions, the business
opportunities that may be presented to and pursued by the Company, changes in
law or regulations and other factors, many of which are beyond the control of
the Company. Readers are cautioned that these statements are not guarantees of
future performance, and the actual results or developments may differ materially
from those projected in the forward-looking statements. All subsequent written
and oral forward-looking statements attributable to the Company or persons
acting on its behalf are expressly qualified in their entirety by these
cautionary statements.
1
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<CAPTION>
LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
July 31, January 31,
1999 1999
(Unaudited) (Derived from audited
financial statements)
<S> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents ........................... $ 729,764 $ 1,436,083
Accounts receivable, net of allowance for
doubtful accounts of $200,000 at July 31, 1999 and
January 31, 1999 .................................. 6,584,092 6,743,341
Inventories ......................................... 16,971,479 16,110,910
Deferred income taxes ............................... 567,000 567,000
Other current assets ................................ 628,806 461,231
----------- -----------
Total current assets ....................... 25,481,141 25,318,565
Property and equipment, net of accumulated
depreciation of $2,766,000 at July 31, 1999
and $2,619,000 at January 31, 1999 ................ 1,667,347 1,326,261
Excess of cost over fair value of net assets
acquired, net of accumulated amortization
of $246,000 at July 31, 1999 and
$236,000 at January 31, 1999 ...................... 298,804 308,798
Other assets ........................................ 148,626 206,847
----------- -----------
$27,595,918 $27,160,471
=========== ===========
<PAGE>
<CAPTION>
LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
July 31, January 31,
1999 1999
(Unaudited) (Derived from audited
financial statements)
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable .................................... $ 2,626,755 $ 1,455,190
Current portion of long-term liabilities ............ 9,613,293 10,777,863
Accrued expenses and other current liabilities ...... 530,450 682,148
----------- -----------
Total current liabilities ...................... 12,770,498 12,915,201
Long-term liabilities ............................... 455,020 464,762
Deferred income taxes ............................... 56,000 56,000
Commitments and Contingencies
Stockholders' Equity
Preferred stock, $.01 par;
1,500,000 shares authorized; none issued
Common stock, $.01 par;
10,000,000 shares authorized;
2,660,500 shares issued and outstanding
at July 31, 1999 and January 31, 1999 ............. 26,605 26,605
Additional paid-in capital .......................... 6,199,656 6,199,656
Retained earnings ................................... 8,088,139 7,498,247
----------- -----------
Total stockholders' equity ..................... 14,314,400 13,724,508
----------- -----------
$27,595,918 $27,160,471
=========== ===========
</TABLE>
See notes to condensed consolidated financial statements.
2
<PAGE>
<TABLE>
<CAPTION>
LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME (UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED
July 31, July 31,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Net Sales ................................. $ 13,940,948 $ 13,854,419 $ 29,396,610 $ 29,896,116
Cost of Goods Sold ........................ 11,758,063 11,013,068 24,621,953 23,876,031
------------ ------------ ------------ ------------
Gross Profit .............................. 2,182,885 2,841,351 4,774,657 6,020,085
Operating Expenses ........................ 1,883,100 1,735,863 3,540,867 3,444,623
------------ ------------ ------------ ------------
Operating Profit .......................... 299,785 1,105,488 1,233,790 2,575,462
Other Income/(Expense), net ............... 14,985 9,046 29,277 21,879
Interest Expense .......................... (169,082) (207,587) (338,175) (375,742)
------------ ------------ ------------ ------------
Income before Income Taxes ................ 145,688 906,947 924,892 2,221,599
Provision for Income Taxes ................ 60,000 355,000 335,000 868,000
------------ ------------ ------------ ------------
Net Income ................................ $ 85,688 $ 551,947 $ 589,892 $ 1,353,599
============ ============ ============ ============
Net Income per common share:
Basic ................................ $ .03 $ .21 $ .22 $ .52
============ ============ ============ ============
Diluted .............................. $ .03 $ .20 $ .22 $ .50
============ ============ ============ ============
Weighted average common shares outstanding:
Basic ................................ 2,660,500 2,645,102 2,660,500 2,627,787
============ ============ ============ ============
Diluted .............................. 2,689,760 2,698,514 2,686,502 2,692,720
============ ============ ============ ============
</TABLE>
See notes to condensed consolidated financial statements.
3
<PAGE>
<TABLE>
<CAPTION>
LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED)
Six months ended July 31, 1999
Additional
Common Stock Paid-in Retained
Shares Amount Capital Earnings Total
------ ------ ------- -------- -----
<S> <C> <C> <C> <C> <C>
Balance, January 31, 1999 2,660,500 $26,605 $6,199,656 $7,498,247 $13,724,508
Net income 589,892 589,892
--------- ------- ---------- ---------- -----------
Balance, July 31, 1999 2,660,500 $26,605 $6,199,656 $8,088,139 $14,314,400
========= ======= ========== ========== ===========
</TABLE>
See notes to condensed consolidated financial statements.
4
<PAGE>
<TABLE>
<CAPTION>
LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
SIX MONTHS ENDED
July 31,
1999 1998
----------- -----------
<S> <C> <C>
Cash Flows from Operating Activities:
Net Income .............................................. $ 589,892 $ 1,353,599
Adjustments to reconcile net income to net cash provided
by (used in) operating activities:
Depreciation and amortization ........................... 236,063 235,041
Decrease (increase) in accounts receivable .............. 159,249 (9,590)
Decrease (increase) in inventories ...................... (860,569) (801,693)
Decrease (increase) in other current assets ............. 167,575) (100,604)
Decrease (increase) in other assets ..................... 58,221 23,559
Increase (decrease) in accounts payable, accrued
expenses and other liabilities ........................ 1,010,125 (2,812,271)
----------- -----------
Net cash provided (used in) by operating
activities ............................................ 1,025,406 (2,111,959)
Cash Flows from Investing Activities:
Purchases of property and equipment ..................... (567,155) (102,602)
Cash Flows from Financing Activities:
Proceeds from exercise of stock options ................. -- 100,869
Net borrowings (reduction) under line of credit agreement (1,164,570) 3,137,871
----------- -----------
Net cash (used in) provided by financing activities ..... (1,164,570) 3,238,740
----------- -----------
Net (decrease) increase in cash ......................... (706,319) 1,024,179
Cash and cash equivalents at beginning of period ........ 1,436,083 222,700
----------- -----------
Cash and cash equivalents at end of period .............. $ 729,764 $ 1,246,879
=========== ===========
Supplemental disclosures of cash flow information:
Cash paid during period for:
Interest ............................................ $ 282,071 $ 300,679
=========== ===========
Income taxes ........................................ $ 370,000 $ 742,185
=========== ===========
</TABLE>
See notes to condensed consolidated financial statements.
5
<PAGE>
LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
A. Business
Lakeland Industries, Inc. and Subsidiaries (the "Company"), a Delaware
corporation, organized in April 1982, is engaged primarily in the
manufacture of disposable and reusable protective work clothing. The
principal market for the Company's products is the United States. No
customer accounted for more than 10% of net sales during the six month
periods ended July 31, 1999 and 1998.
B. Principles of Consolidation
The accompanying condensed consolidated financial statements include
the accounts of the Company and its wholly-owned subsidiaries, Laidlaw,
Adams & Peck, Inc. (formerly Fireland Industries, Inc.), Lakeland
Protective Wear, Inc. (a Canadian corporation) and Lakeland de Mexico S.A.
de C.V. (a Mexican corporation) and Weifang Lakeland Safety Products, Co.,
Ltd. (a Chinese corporation). All significant intercompany accounts and
transactions have been eliminated.
C. Inventories:
Inventories consist of the following:
<TABLE>
<CAPTION>
July 31, January 31,
1999 1999
---- ----
<S> <C> <C>
Raw materials......................................... $3,155,439 $2,461,225
Work-in-process....................................... 4,470,226 3,618,901
Finished goods........................................ 9,345,814 10,030,784
----------- ------------
$16,971,479 $16,110,910
=========== ============
</TABLE>
Inventories are stated at the lower of cost or market. Cost is
determined on the first-in, first-out method.
D. Earnings Per Share:
Basic earnings per share are based on the weighted average number of
common shares outstanding without consideration of potential common stock.
Diluted earnings per share are based on the weighted average number of
common and potential common shares outstanding. The calculation takes into
account the shares that may be issued upon exercise of stock options,
reduced by the shares that may be repurchased with the funds received from
the exercise, based on the average price during the period.
6
<PAGE>
The following table sets forth the computation of basic and diluted
earnings per share:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
July 31, July 31,
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Numerator
Net income $85,688 $551,947 $589,892 $1,353,599
======= ======== ======== ==========
Denominator
Denominator for basic earnings per share
(Weighted-average shares) 2,660,500 2,645,102 2,660,500 2,627,787
Effect of dilutive securities:
Stock options 29,260 53,412 26,002 64,933
------ ------ ------ ------
Denominator for diluted earnings per share
(adjusted weighted-average shares) and
assumed conversions 2,689,760 2,698,514 2,686,502 2,692,720
========= ========= ========= =========
Basic earnings per share $.03 $.21 $.22 $.52
==== ==== ==== ====
Diluted earnings per share $.03 $.20 $.22 $.50
==== ==== ==== ====
</TABLE>
E. Revolving Credit Facility:
At July 31, 1999, the balance outstanding under the Company's secured
$16 million revolving credit facility amounted to $9,563,293. This facility
is collateralized by substantially all of the assets of the Company,
guaranteed by certain of the Company's subsidiaries and expires on November
30, 1999, however, $3 million of this line expired on August 31, 1999.
Borrowings under the facility bear interest at a rate per annum equal to
the one-month LIBOR or the 30-day commercial paper rate, as defined, plus
1.75%. The facility requires the Company to maintain a minimum tangible net
worth, at all times. The Company is presently in the process of negotiating
the renewal of the facility.
F. Major Supplier
The Company purchased approximately 75.1% of its raw materials from one
supplier under licensing agreements during the six month period ended July
31, 1999. The Company expects this relationship to continue for the
foreseeable future. If required, similar raw materials could be purchased
from other sources; although, the Company's competitive position in the
marketplace could be affected.
G. Commitments
On June 1, 1999, the Company entered into a 5 year lease agreement with
River Group Holding Co. LLP for a 40,000 sq. ft. warehouse facility located
next to the existing facility in Decatur, Alabama. River Group Holding, Co.
LLP is a limited liability partnership made up of the Directors and certain
officers of the Company. The annual rent for this facility is $199,100 and
the Company is the sole occupant of the facility.
7
<PAGE>
LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
ITEM 2.
Six months ended July 31, 1999 compared to the six months ended
July 31, 1998.
Net Sales. Net sales for the six months ended July 31, 1999 decreased
$499,000 or 1.7% to $29,397,000 from $29,896,000 for the six months ended July
31, 1998. The decrease in sales was principally attributable to competitive
conditions, product mix and that the prior year period was aided by a price
increase effective March 1, 1998.
Gross Profit. Gross profit for the six months ended July 31, 1999 decreased
by $1,245,00 0 or 20.7% to $4,775,000 or 16.2% of net sales from $6,020,000 or
20.1% of net sales, for the six months ended July 31, 1998. The Gross profit
decreased principally as a result of inefficiencies in manufacturing due to the
start up phase of automated equipment and plant expansion and relocation, which
is expected to be completed by the year end. A decrease in unit sales and lower
margin product mix contributed to this decrease.
Operating Expenses. Operating expenses for the six months ended July 31,
1999 increased by $96,000 or 2.5% to $3,541,000, or 12.1% of nets sales, from
$3,445,000, or 11.5% of net sales, for the six months ended July 31,1998.
Operating expenses as a percentage of net sales increased to 12.1% from 11.5%
principally as a result of increased freight, commissions, payroll and expenses
related to the addition of in-house regional sales managers (commencing in the
fourth quarter of fiscal 1999).
Interest Expense. Interest expense for the six months ended July 31, 1999
decreased by $38,000 or 10.1% to $338,000 from $376,000 for the six months ended
July 31, 1998. The decrease in interest expense was mainly due to lower interest
costs reflecting a decrease in average borrowings under the Company's credit
facility.
Income Tax Expense. The effective tax rate for the six months ended July
31, 1999 and 1998 of 36% and 39%, respectively deviates from the Federal
statutory rate of 34%, mainly attributable to state income taxes.
Net Income. As a result of the foregoing, net income for the six months
ended July 31, 1999 decreased by $764,000 to net income of $590,000 from net
income of $1,354,000 for the six months ended July 31, 1998.
Three months ended July 31, 1999 compared to the three months ended
July 31, 1998.
Net Sales. Net sales for the three months ended July 31, 1999 increased
$87,000 or .6% to $13,941,000 from $13,854,000 for the three months ended July
31, 1998. The increase in sales was negatively affected by the meeting of
competitive price conditions and the mix of products sold.
Gross Profit. Gross profit for the three months ended July 31, 1999
decreased by $658,000 or 23.2% to $2,183,000 or 15.7% of net sales from
$2,841,000 or 20.5% of net sales, for the three months ended July 31, 1998.
Gross profit decreased as a result of inefficiencies incurred in manufacturing
due to the start up phase of additional automated equipment and plant expansion
and relocation., which is expected to be completed by year end. Lower margin
sales of certain products also contributed to this decrease.
Operating Expenses. Operating expenses for the three months ended July 31,
1999 increased by $147,000 or 8.5% to $1,883,000, or 13.5% of net sales, from
$1,736,000, or 12.5% of net sales, for the three months ended July 31,1998.
Operating expenses as a percentage of net sales increased to 13.5% from 12.5%
principally as a result of increased freight, commissions and payroll and
expenses related to the addition of in-house regional sales managers.
Interest Expense. Interest expense for the three months ended July 31, 1999
decreased by $39,000 or 18.6% to $169,000 from $208,000 for the three months
ending July 31, 199. The decrease in interest expense was mainly due to lower
interest costs reflecting a decrease in average borrowings under the Company's
credit facility.
Income Tax Expense. The effective tax rate for the three months ended July
31, 1999 and 1998 of 41% and 39%, respectively deviates from the Federal
statutory rate of 34%, mainly attributable to state income taxes.
Net Income. As a result of the foregoing, net income for the three months
ended July 31, 1999 decreased by $466,000 to net income of $86,000 from net
income of $552,000 for the three months ended July 31, 1998.
8
<PAGE>
LIQUIDITY and CAPITAL RESOURCES
Liquidity and Capital Resources. The Company's working capital is equal to
$ 12,711,000 at July 31, 1999. The Company's primary sources of funds for
conducting its business activities have been from cash flow provided by
operations and borrowings under its revolving credit facility. The Company
requires liquidity and working capital primarily to fund increases in
inventories and accounts receivable associated with sales growth and, to a
lesser extent, for capital expenditures.
Net cash provided by operating activities was $1,025,000 for the six
months ended July 31, 1999 and was due primarily to the increase in accounts
payable of $1,010,000.
Net cash used in financing activities of $1,165,000 was attributable to
net repayment of the revolving credit facility during the period.
The long-term revolving credit facility permits the Company to borrow
up to a maximum of $16 million. The agreement expires on November 30, 1999 and
has therefore been classified as a short-term liability in the accompanying
balance sheet at July 31, 1999. $3 million of this facility expired on August
31, 1999. Borrowings under the revolving credit facility amounted to
approximately $9,563,000 million at July 31, 1999. Management has commenced
renewal negotiations with respect to this facility.
The Company believes that cash flow from operations and the revolving
credit facility (upon renewal) will be sufficient to meet its currently
anticipated operating, capital expenditures and debt service requirements for at
least the next 12 months.
Foreign Currency Activity
The Company's foreign exchange exposure is principally limited to the
relationship of the U.S. Dollar to the Canadian Dollar.
Year 2000 Compliance
The Year 2000 issue is the result of computer programs which were written
using two digits rather than four to define the applicable year. For example,
date-sensitive software may recognize a date using "00" as the Year 1900, rather
than the Year 2000. Such misrecognition 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 substantially completed its program to prepare computer
systems and applications for the Year 2000. The Company expects to incur minimal
additional internal staff costs, consulting and other expenses related to
enhancements necessary to complete the systems for the Year 2000. Management
believes that the estimated costs to complete the program will not be material
to the Company.
In addition, the Company has inquired of its major suppliers about their
progress in identifying and addressing problems related to the Year 2000.
Certain of the Company's major suppliers have informed the Company that such
suppliers do not anticipate problems in their business operations due to Year
2000 compliance issues. The Company is currently unable to determine the extent
to which Year 2000 issues will affect its other suppliers, or to the extent to
which it would be vulnerable to the suppliers' failure to remediate any of their
Year 2000 problems. Although no assurance can be given that all of the Company's
major suppliers' systems will be Year 2000 compliant, the Company believes that
the risk is not significant.
Item 6......................Exhibits and Reports on Form 8-K:
a - None
b - No reports on Form 8-K were filed during the three month
period ended July 31, 1999.
9
<PAGE>
_________________SIGNATURES_________________
Pursuant to the requirements of Section 13 or 15 (d) 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.
LAKELAND INDUSTRIES, INC.
-------------------------
(Registrant)
Date: September 13, 1999 /s/Raymond J. Smith
------------------ -------------------
Raymond J. Smith,
President and
Chief Executive Officer
Date: September 13, 1999 James M. McCormick
------------------ ------------------
James M. McCormick,
Vice President and Treasurer
(Principal Accounting Officer)
10
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JAN-31-2000
<PERIOD-END> JUL-31-1999
<CASH> 729,764
<SECURITIES> 0
<RECEIVABLES> 6,584,092
<ALLOWANCES> 0
<INVENTORY> 16,971,479
<CURRENT-ASSETS> 25,481,141
<PP&E> 1,667,347
<DEPRECIATION> 0
<TOTAL-ASSETS> 27,595,918
<CURRENT-LIABILITIES> 12,770,498
<BONDS> 0
0
0
<COMMON> 26,605
<OTHER-SE> 14,287,795
<TOTAL-LIABILITY-AND-EQUITY> 27,595,918
<SALES> 29,396,610
<TOTAL-REVENUES> 29,396,610
<CGS> 24,621,953
<TOTAL-COSTS> 3,540,867
<OTHER-EXPENSES> (29,277)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 338,175
<INCOME-PRETAX> 924,892
<INCOME-TAX> 335,000
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 589,892
<EPS-BASIC> .22
<EPS-DILUTED> .22
</TABLE>
