UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1999
[ _ ] 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 0-15057
--------
P.A.M. TRANSPORTATION SERVICES, INC.
------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 71-0633135
-------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Highway 412 West, Tontitown, Arkansas 72770
-------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrants telephone number, including area code: (501) 361-9111
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:
Class Outstanding at August 5, 1999
----- -----------------------------
Common Stock, $.01 Par Value 8,413,757
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
<PAGE>
P.A.M. TRANSPORTATION SERVICES, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
<TABLE>
<CAPTION>
June 30, December 31,
1999 1998
---- ----
(unaudited) (note)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 2,308 $ 5,963
Receivables:
Trade, net of allowance 25,427 20,816
Other 572 63
Equipment held for sale 414 505
Operating supplies and inventories 393 458
Deferred income taxes 130 19
Prepaid expenses and deposits 6,478 3,860
Income taxes refundable 155 38
--------- ---------
Total current assets 35,877 31,722
Property and equipment, at cost 170,856 133,860
Less: accumulated depreciation (48,854) (42,429)
--------- ---------
Net property and equipment 122,002 91,431
Other assets:
Excess of cost over net assets acquired 9,114 2,277
Non compete agreement 461 297
Other 1,290 744
--------- ---------
Total other assets 10,865 3,318
--------- ---------
Total assets $ 168,744 $ 126,471
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $ 18,389 $ 13,362
Trade accounts payable 14,714 8,494
Other current liabilities 8,753 5,178
--------- ---------
Total current liabilities 41,856 27,034
Long-term debt, less current portion 62,632 44,816
Non compete agreement 196 0
Deferred income taxes 16,425 13,164
Shareholders' equity:
Common stock 84 83
Additional paid-in capital 18,890 18,814
Retained earnings 28,661 22,560
--------- ---------
Total shareholders' equity 47,635 41,457
--------- ---------
Total liabilities and shareholders' equity $ 168,744 $ 126,471
========= =========
</TABLE>
Note: The balance sheet at December 31, 1998 has been derived from the audited
financial statements at that date but does not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements. See notes to condensed consolidated financial statements.
<PAGE>
P.A.M. TRANSPORTATION SERVICES, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Operating revenues $ 53,675 $ 36,012 $ 105,066 $ 71,451
Operating expenses:
Salaries, wages and benefits 23,310 16,252 45,712 32,433
Operating supplies 8,719 6,490 16,879 13,353
Rent/purchased transportation 3,293 253 7,323 474
Depreciation and amortization 4,649 3,588 8,879 7,045
Operating taxes and licenses 2,914 1,886 5,765 4,025
Insurance and claims 2,098 1,489 4,096 2,952
Communications and utilities 591 409 1,201 758
Other 1,124 696 2,107 1,345
(Gain) loss on sale of equipment (90) 25 (113) 73
--------- --------- --------- ---------
46,608 31,088 91,849 62,458
--------- --------- --------- ---------
Operating income 7,067 4,924 13,217 8,993
Other income (expense)
Interest expense (1,479) (1,027) (2,884) (1,857)
--------- --------- --------- ---------
(1,479) (1,027) (2,884) (1,857)
Income before income taxes 5,588 3,897 10,333 7,136
Income taxes --current 488 623 1,072 741
--deferred 1,806 858 3,160 2,035
--------- --------- --------- ---------
2,294 1,481 4,232 2,776
Net income $ 3,294 $ 2,416 $ 6,101 $ 4,360
========= ========= ========= =========
Net income per common share:
Basic $ 0.39 $ 0.29 $ 0.73 $ 0.53
========= ========= ========= =========
Diluted $ 0.39 $ 0.29 $ 0.72 $ 0.52
========= ========= ========= =========
Average common shares outstanding-Basic 8,377,960 8,299,702 8,360,178 8,292,906
========= ========= ========= =========
Average common shares outstanding-Diluted 8,457,711 8,473,015 8,449,431 8,461,769
========= ========= ========= =========
</TABLE>
See notes to condensed consolidated financial statements.
<PAGE>
P.A.M. TRANSPORTATION SERVICES, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)
(in thousands)
<TABLE>
<CAPTION>
Six months Ended
June 30,
1999 1998
---- ----
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 6,101 $ 4,360
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 8,879 7,045
Non compete agreement amortization 196 220
Provision for deferred income taxes 3,160 2,034
(Gain)/loss on retirement of property and equipment (113) 73
Changes in operating assets and liabilities:
Accounts receivable 469 (569)
Prepaid expenses and other current assets (1,897) (506)
Accounts payable 4,389 298
Accrued expenses 1,688 272
--------- ---------
Net cash provided by operating activities 22,872 13,227
INVESTING ACTIVITIES
Purchases of property and equipment (28,704) (23,174)
Acquisition of business, net of cash acquired (9,642) 0
Proceeds from sales of assets 2,750 2,277
Lease payments received on direct financing leases 582 0
--------- ---------
Net cash used in investing activities (35,014) (20,897)
FINANCING ACTIVITIES
Borrowings under lines of credit 100,491 80,441
Repayments under lines of credit (100,491) (85,663)
Borrowings of long-term debt 18,469 20,807
Repayments of long-term debt (10,058) (9,159)
Proceeds from exercise of stock options 76 116
--------- ---------
Net cash provided by financing activities 8,487 6,542
--------- ---------
Net decrease in cash and cash equivalents (3,655) (1,128)
Cash and cash equivalents at beginning of period $ 5,963 $ 6,401
--------- ---------
Cash and cash equivalents at end of period $ 2,308 $ 5,273
========= =========
</TABLE>
See notes to condensed consolidated financial statements.
<PAGE>
P.A.M. TRANSPORTATION SERVICES, INC.
AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
JUNE 30, 1999
NOTE A: 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-Q and Article 10 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. In management's opinion, all adjustments (consisting of
normal recurring accruals) necessary for a fair presentation have been included.
Operating results for the six-month period ended June 30, 1999 are not
necessarily indicative of the results that may be expected for the year ended
December 31, 1999. For further information, refer to the consolidated financial
statements and the footnotes thereto included in the Company's annual report on
Form 10-K for the year ended December 31, 1998.
NOTE B: NOTES PAYABLE AND LONG-TERM DEBT
- ----------------------------------------------
In the first six months of 1999, the Company's subsidiaries, P.A.M. Transport,
Inc., P.A.M. Dedicated Services, Inc., Choctaw Express, Inc. and Decker
Transport Co., Inc. entered into installment obligations for the purchase of
revenue equipment in the amounts of approximately $8.9 million, $2.1 million,
$3.1 million and $4.5 million, respectively. These obligations are payable in
36, 48 and 60 monthly installments at interest rates ranging from 6.34% to
6.97%.
NOTE C: NEW ACCOUNTING PRONOUNCEMENT
- ----------------------------------------
In June 1998, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 133, "Accounting for Derivative Instruments
and Hedging Activities". The Statement establishes accounting and reporting
standards requiring that every derivative instrument be recorded in the balance
sheet as either an asset or liability at its fair value. The Company has
determined that the adoption of this statement will have no material effect on
its financial statements.
<PAGE>
PART I - FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
FORWARD-LOOKING INFORMATION
- ----------------------------
Certain information included in this Quarterly Report on Form 10-Q contains
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements may relate to
financial results and plans for future business activities, and are thus
prospective. Such forward-looking statements are subject to risks,
uncertainties and other factors which could cause actual results to differ
materially from future results expressed or implied by such forward-looking
statements. Potential risks and uncertainties include, but are not limited to,
general economic conditions, competition and other uncertainties detailed in
this report and detailed from time to time in other filings by the Company with
the Securities and Exchange Commission.
THREE MONTHS ENDED JUNE 30, 1999 VS. THREE MONTHS ENDED JUNE 30, 1998
- --------------------------------------------------------------------------------
For the quarter ended June 30, 1999, revenues increased 49.0% to $53.7 million
as compared to $36.0 million for the quarter ended June 30, 1998. The main
factors for the increase were an increase in the average number of tractors from
1,051 in the second quarter of 1998 to 1,449 in the second quarter of 1999, of
which 251 additional units were attributable to the acquisition of Decker
Transport Co., Inc. ("Decker"), and an increase in the average rate per mile
charged by the Company in the second quarter of 1999 as compared to the second
quarter of 1998, also primarily related to the Decker acquisition.
The Company's operating ratio increased to 86.8% in the second quarter of 1999
compared to 86.3% in the second quarter of 1998.
Salaries, wages and benefits decreased from 45.1% of revenues in the second
quarter of 1998 to 43.4% of revenues in the second quarter of 1999. The
decrease relates primarily to the brokerage operations acquired in connection
with the Decker acquisition in which revenues are generated through the use of
outside transportation services and not Company paid drivers.
Operating supplies and expenses decreased from 18.0% of revenues in the second
quarter of 1998 to 16.2% of revenues in the second quarter of 1999. The
decrease relates primarily to a lower price paid for diesel fuel, and to costs,
including fuel, associated with the brokerage operations acquired in connection
with the Decker acquisition being combined and paid to other transportation
companies in the form of purchased transportation.
Rent and purchased transportation increased from 0.7% of revenues in the second
quarter of 1998 to 6.1% of revenues in the second quarter of 1999. The increase
relates primarily to the Decker acquisition which purchases transportation
services from other transportation companies in order to support its brokerage
operations.
Depreciation and amortization decreased from 10.0% of revenues in the second
quarter of 1998 to 8.7% of revenues in the second quarter of 1999. The decrease
relates primarily to the Decker acquisition which utilizes outside
transportation companies' drivers and equipment in order to perform its
brokerage activities.
The Company's effective tax rate increased from 38.0% in the second quarter of
1998 to 41.0% in the second quarter of 1999. This increase is related to
payments made to Decker drivers in the form of a per diem which is only
partially deductible by the Company for federal and state income tax purposes.
SIX MONTHS ENDED JUNE 30, 1999 VS. SIX MONTHS ENDED JUNE 30, 1998
- -----------------------------------------------------------------------------
For the six months ended June 30, 1999, revenues increased 47.0% to $105.1
million as compared to $71.4 million for the six months ended June 30, 1998. The
main factors for the increase were an increase in the average number of tractors
from 1,028 for the first six months of 1998 to 1,427 for the first six months of
1999, of which 256 additional units were attributable to the Decker acquisition,
and an increase in the average rate per mile charged by the Company for the
first six months of 1999 as compared to the first six months of 1998, also
primarily related to the Decker acquisition.
The Company's operating ratio remained constant at 87.4% for the periods
compared.
Salaries, wages and benefits decreased from 45.4% of revenues in the first six
months of 1998 to 43.5% of revenues in the first six months of 1999. The
decrease relates primarily to the brokerage operations acquired in connection
with the Decker acquisition in which revenues are generated through the use of
outside transportation services and not Company paid drivers.
Operating supplies and expenses decreased from 18.7% of revenues in the first
six months of 1998 to 16.1% of revenues in the first six months of 1999. The
decrease relates primarily to a lower price paid for diesel fuel, and to costs,
including fuel, associated with the brokerage operations acquired in connection
with the Decker acquisition being combined and paid to other transportation
companies in the form of purchased transportation.
Rent and purchased transportation increased from 0.7% of revenues in the first
six months of 1998 to 7.0% of revenues in the first six months of 1999. The
increase relates primarily to the Decker acquisition which purchases
transportation services from other transportation companies in order to support
its brokerage operations.
Depreciation and amortization decreased from 9.9% of revenues in the first six
months of 1998 to 8.5% of revenues in the first six months of 1999. The
decrease relates primarily to the Decker acquisition which utilizes outside
transportation companies' drivers and equipment in order to perform its
brokerage activities.
The Company's effective tax rate increased from 38.9% in the first six months of
1998 to 40.9% in the first six months of 1999. This increase is related to
payments made to Decker drivers in the form of a per diem which is only
partially deductible by the Company for federal and state income tax purposes.
LIQUIDITY AND CAPITAL RESOURCES
- ----------------------------------
During the first six months of 1999, the Company generated $22.9 million in cash
from operating activities. Investing activities used $35.0 million in cash in
the first six months of 1999. Financing activities generated $8.5 million in
the first six months of 1999 primarily from long-term borrowings.
The Company's principal subsidiary, P.A.M. Transport, Inc., has a $15.0 million
secured bank line of credit subject to borrowing limitations. This line of
credit represents a general "working capital" line of credit at an interest rate
of LIBOR as of the first day of the month plus 1.40% (6.44% at June 30, 1999).
Outstanding advances on this line of credit were approximately $4.0 million at
June 30, 1999 consisting entirely of letters of credit. The Company's borrowing
base limitation at June 30, 1999 was $11.0 million. The line of credit is
guaranteed by the Company and the first $7.5 million matures on May 31, 2000
while the remaining $7.5 million matures on May 31, 2001.
In addition to cash flow from operations, the Company uses its existing line of
credit on an interim basis to finance capital expenditures and repay long-term
debt. Longer-term transactions, such as installment notes (generally three to
five year terms at fixed rates), are typically entered into for the purchase of
revenue equipment; however, the Company purchased additional revenue equipment
during the first six months of 1999 at a cost of approximately $8.6 million
using its existing line of credit. In addition, P.A.M. Transport, Inc., P.A.M.
Dedicated Services, Inc., Choctaw Express, Inc. and Decker Transport Co., Inc.,
subsidiaries of the Company, entered into installment obligations during the
first six months of 1999 for the purchase of revenue equipment in the amounts of
approximately $8.9, $2.1, $3.1 and $4.5 million, respectively, payable in 36, 48
and 60 monthly installments at interest rates ranging from 6.34% to 6.97%.
During the remainder of 1999, the Company plans to replace 184 tractors and 200
trailers which would result in additional debt of approximately $12.1 million.
Management expects that the Company's existing working capital and its available
line of credit will be sufficient to meet the Company's capital commitments as
of June 30, 1999, to repay indebtedness coming due in the current year, and to
fund its operating needs during the remainder of fiscal 1999.
<PAGE>
ACQUISITION OF DECKER TRANSPORT CO., INC.
- ----------------------------------------------
On January 11, 1999, the Company closed the purchase of substantially all of the
assets and assumed certain liabilities of Decker Transport Co., Inc., a
truckload carrier located in New Jersey. The Company acquired assets, which
consisted primarily of revenue equipment and trade accounts receivable, totaling
approximately $21.0 million and assumed liabilities, which consisted primarily
of installment note obligations and trade accounts payable, totaling
approximately $14.1 million. In connection with this acquisition, the Company
issued to the seller an installment note in the amount of $4.0 million at an
interest rate of 6% and paid cash of approximately $9.8 million utilizing
existing cash and its line of credit.
The purchase price has been allocated to assets and liabilities based on their
estimated fair values as of the date of acquisition. Goodwill was recorded as a
result of the purchase allocation and it is being amortized over a 25-year
period. The Company also entered into three-year Non-competition Agreements
with eight shareholders or officers/employees of Decker Transport Co., Inc.
The acquisition has been accounted for under the purchase method, effective
January 11, 1999, with the operations of Decker included in the Company's
financial statements since that date. The following pro forma financial
information is based on the audited consolidated financial statements of P.A.M.
Transportation Services, Inc. for the year ended December 31, 1998 and from the
audited combined financial statements of Decker Transport Co., Inc. and Van
Houten Ltd. for the year ended December 31, 1998 and adjusted as if the
acquisition had occurred on January 1, 1998, with certain assumptions made that
management believes to be reasonable. This information is for comparative
purposes only and does not purport to be indicative of the results of operations
that would have occurred had the transaction been completed at the beginning of
the period or indicative of the results that may occur in the future.
<TABLE>
<CAPTION>
1998
(unaudited)
----------------
(in thousands, except per share data)
<S> <C>
Operating revenue $ 191,616
Income from operations 17,402
Income before income tax provision 11,813
Net income 7,239
Earnings per share -basic .87
Earnings per share -diluted .86
Weighted average shares -basic 8,306
Weighted average shares -diluted 8,444
</TABLE>
<PAGE>
YEAR 2000
- ----------
Many companies may face a potentially serious information systems problem
because their computer software applications and operational programs may not
properly recognize calendar dates beginning in the Year 2000. This problem
could force computers to either shut down or provide incorrect data or
information causing a temporary inability to process transactions. Accordingly,
a disruption of normal business activities may occur.
The Company began the process of identifying the changes required to its
computer programs and hardware in 1997 and has completed its Year 2000
assessment consisting of an analysis of all information systems, data and voice
networks, physical plants, rolling stock electronic systems and external
suppliers and customers. The Company has determined its overall risk due to
Year 2000 failures and has developed a strategy to repair or replace any system
determined to be non-compliant. The Company anticipates funding all Year 2000
related expenditures, which are currently estimated at $100,000, from operating
cash flows and as of June 30, 1999 the Company had incurred costs of
approximately $25,000 related to Year 2000 issues.
All information systems requiring replacement or remediation are under a vendor
software maintenance contract, which includes an upgrade to a Year 2000
compatible version. The software vendor has released its Year 2000 compatible
version, which has been installed and is being used. This version has passed
all of the Company's Year 2000 tests and the Company believes that this software
is Year 2000 compliant.
The Company has surveyed its major suppliers and customers as well as secondary
suppliers and customers for their state of readiness. Major suppliers and
customers whose responses indicate they may not be Year 2000 compatible in a
timely fashion are being monitored on a monthly basis. The Company has also
issued certification requests to the software companies on which its computer
programs rely seeking assurance that they will be Year 2000 compliant.
Approximately 97% of the questionnaires have been returned. Respondents have
indicated that they are currently Year 2000 compliant or will be in advance of
the Year 2000.
The Company's contingency plans relative to the Year 2000 have not been
finalized. These plans are evolving as the testing of systems progresses and
the Company's subsidiaries continue to convert to Year 2000 compliant software.
During the conversion phase management will develop and modify a "worst case
scenario" contingency plan based on testing and conversion results.
The related costs and projected completion dates for Year 2000 compatability are
based upon management's best estimates. However, management cannot predict with
certainty the impact on the Company's business, financial condition, and results
of operations if customers and suppliers fail or delay to address Year 2000
issues.
<PAGE>
PART II. OTHER INFORMATION
------------------------------
Item 3. Quantitative and Qualitative Disclosure about Market Risk.
- ----------------------------------------------------------------------------
The Company's General Line of Credit agreement provides for borrowings,
which bear interest at variable rates based on the LIBOR. At June 30, 1999, the
Company had approximately $4.0 million outstanding pursuant to the General Line
of Credit. The Company believes that the effect, if any, of reasonably possible
near-term changes in interest rates on the Company's financial position, results
of operations, and cash flows should not be material.
All customers are required to pay for the Company's services in U.S.
dollars and the Company does not engage in hedging transactions relating to
diesel fuel or any other commodity.
Item 4. Submission of Matters to a Vote of Security Holders.
- ------------------------------------------------------------------------
The 1999 Annual Meeting of Stockholders of the Company was held on May 20,
1999. At the meeting, the following persons were elected as directors to serve
for a term of one year and until their successors are elected and qualified:
Robert W. Weaver, Daniel C. Sullivan, Matthew T. Moroun, Charles F. Wilkins,
Fredrick P. Calderone and Joseph J. Casaroll.
The results of voting with respect to the election of directors were as follows:
Votes Votes
FOR WITHHELD
--- --------
Robert W. Weaver 8,226,103 3,400
Daniel C. Sullivan 8,226,103 3,400
Charles F. Wilkins 8,226,103 3,400
Matthew T. Moroun 8,225,103 3,400
Fredrick P. Calderone 8,226,103 3,400
Joseph J. Casaroll 8,223,103 3,400
Item 5. Other Information.
- -------------------------------
Any proposal to be presented at the 2000 Annual Meeting of Stockholders
must be received at the principal executive offices of the Company not later
than December 21, 1999, directed to the attention of the Secretary, for
consideration for inclusion in the Company's proxy statement and form of proxy
relating to that meeting. Any such proposals must comply in all respects with
the rules and regulations of the Securities and Exchange Commission.
In connection with the Company's Annual Meeting of Stockholders to be held
in 2000, if the Company does not receive notice of a matter or proposal to be
considered by March 5, 2000, then the persons appointed by the Board of
Directors to act as the proxies for such Annual Meeting (named in the form of
proxy) will be allowed to use their discretionary voting authority with respect
to any such matter or proposal at the Annual Meeting, if such matter or proposal
is properly raised at the Annual Meeting and put to a vote.
Item 6. Exhibits and Reports on Form 8-K.
- --------------------------------------------------
(a) The following exhibits are filed with this report:
11.1 - Statement Re: Computation of Diluted Earnings Per Share.
27.1 - Financial Data Schedule (for SEC use only).
(b) Reports on Form 8-K
None.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
P.A.M. TRANSPORTATION SERVICES, INC.
Dated: August 5, 1999 By: /s/ Robert W Weaver
---------------------------------
Robert W. Weaver
President and Chief Executive Officer
(principal executive officer)
Dated: August 5, 1999 By: /s/ Larry J. Goddard
---------------------------------
Larry J. Goddard
Vice President-Finance, Chief Financial
Officer, Secretary and Treasurer
(principal accounting and financial officer)
EXHIBIT (11)----STATEMENT RE: COMPUTATION OF DILUTED EARNINGS PER SHARE
Diluted earnings per share computations assumes the exercise of stock purchase
warrants and options to purchase shares of common stock. The shares assumed
exercised are based on the weighted average number of warrants and options
outstanding during the period and only include those warrants and options whose
average share price during the period exceeds its related exercise price. The
net additional shares issuable are calculated based on the treasury stock
method and are added to the weighted average number of shares outstanding during
the period.
<TABLE>
<CAPTION>
DILUTED EARNINGS PER SHARE FOR THE PERIOD ENDED JUNE 30, 1999 Three Months Six Months
- ------------------------------------------------------------- ---------- ----------
<S> <C> <C>
Actual net income (A) $ 3,293,764 $ 6,101,339
========== ==========
Assumed exercise of stock options and warrants 243,797 261,995
Application of assumed proceeds ($1,406,368 and $1,461,052)
toward repurchase of outstanding common stock at an average
market price of $8.573 and $8.458, respectively. (164,046) (172,742)
---------- ----------
Net additional shares issuable 79,751 89,253
========== ==========
Adjustment of shares outstanding:
Weighted average common shares outstanding 8,377,960 8,360,178
Net additional shares issuable 79,751 89,253
---------- ----------
Adjusted shares outstanding (B) 8,457,711 8,449,431
========== ==========
Net income per common share (A) divided by (B) $ 0.39 $ 0.72
========== ==========
DILUTED EARNINGS PER SHARE FOR THE PERIOD ENDED JUNE 30, 1998 Three Months Six Months
- -------------------------------------------------------------- ---------- ----------
Actual net income (A) $ 2,415,875 $ 4,359,548
========== ==========
Assumed exercise of stock options and warrants 326,050 326,050
Application of assumed proceeds ($1,629,244) toward
repurchase of outstanding common stock at an average
market price of $10.667 and $10.365, respectively (152,737) (157,187)
---------- ----------
Net additional shares issuable 173,313 168,863
========== ==========
Adjustment of shares outstanding:
Weighted average common shares outstanding 8,299,702 8,292,906
Net additional shares issuable 173,313 168,863
---------- ----------
Adjusted shares outstanding (B) 8,473,015 8,461,769
========== ==========
Net income per common share (A) divided by (B) $ 0.29 $ 0.52
========== ==========
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<EXCHANGE-RATE> 1
<CASH> 2308
<SECURITIES> 0
<RECEIVABLES> 26642
<ALLOWANCES> 643
<INVENTORY> 393
<CURRENT-ASSETS> 35877
<PP&E> 170856
<DEPRECIATION> 48854
<TOTAL-ASSETS> 168744
<CURRENT-LIABILITIES> 41856
<BONDS> 62632
<COMMON> 84
0
0
<OTHER-SE> 47551
<TOTAL-LIABILITY-AND-EQUITY> 168744
<SALES> 0
<TOTAL-REVENUES> 105066
<CGS> 0
<TOTAL-COSTS> 91849
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2884
<INCOME-PRETAX> 10333
<INCOME-TAX> 4232
<INCOME-CONTINUING> 6101
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6101
<EPS-BASIC> .73
<EPS-DILUTED> .72
</TABLE>
