SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Quarter Ended March 31, 1996
Commission File Number 0-15353
----------------------------
SAZTEC INTERNATIONAL, INC.
California 33-0178457
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification Number)
43 Manning Road, Billerica, Massachusetts 01821
(Address of Principal Executive Office)
508-262-9600
(Registrant's Telephone Number)
---------------
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
--- ---
The number of shares outstanding of registrant's Common Stock at April 30, 1996,
was 12,513,651 shares.
<PAGE>
SAZTEC INTERNATIONAL, INC.
FORM 10-QSB
QUARTER ENDED MARCH 31, 1996
CONTENTS
Page
----
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements:
Consolidated Statements of Operations --
Three months ended March 31, 1996 and 1995 3
Consolidated Statements of Operations --
Nine months ended March 31, 1996 and 1995 4
Consolidated Balance Sheets -- March 31, 1996 and
June 30, 1995 5
Consolidated Statements of Cash Flows --
Nine months ended March 31, 1996 and 1995 6 - 7
Notes to Consolidated Financial Statements --
March 31, 1996 and 1995 8 - 9
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 10 - 12
PART II - OTHER INFORMATION
Item 1. Legal Proceedings 13
Item 2. Changes in Securities 13
Item 3. Defaults Upon Senior Securities Not Applicable
Item 4. Submission of Matters to a Vote of Security Holders 13
Item 5. Other Information 13
Item 6. Exhibits and Reports on Form 8-K 13
Signatures 14
<PAGE>
SAZTEC INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
---- ----
<S> <C> <C>
Revenues $2,685,100 $3,501,719
Cost of services 1,852,622 2,772,882
---------- -----------
Gross profit 832,478 728,837
Selling, general & administrative expense 691,192 1,589,257
---------- -----------
Profit (Loss) from operations 141,286 (860,420)
Loss on disposal of division (401,763)
Interest expense (25,628) (64,296)
---------- -----------
Profit (Loss) before provision for income taxes 115,658 (1,326,479)
Benefit for income taxes (84) (21,616)
---------- -----------
Net profit (loss) $115,742 $(1,304,863)
========== ===========
Income (Loss) per share of common stock:
Net income (loss) applicable to common
stockholders $.01 $(.11)
========== ===========
Weighted average number of shares 12,652,319 12,075,184
========== ===========
</TABLE>
See accompanying notes.
<PAGE>
SAZTEC INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED MARCH 31, 1996 AND 1995
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
---- ----
<S> <C> <C>
Revenues $ 8,041,397 $10,669,163
Cost of services 5,791,798 8,671,924
----------- -----------
Gross profit 2,249,599 1,997,239
Selling, general & administrative expense 2,474,932 3,671,182
----------- -----------
Loss from operations (225,333) (1,673,943)
Gain (loss) on disposal of division 231,154 (401,763)
Interest expense (101,176) (128,853)
----------- -----------
Loss before provision for income taxes (95,355) (2,204,559)
Provision for income taxes 9,010
----------- -----------
Net loss $(104,365) $(2,204,559)
=========== ===========
Loss per share of common stock:
Net loss applicable to common stockholders $(.01) $(.19)
=========== ===========
Weighted average number of shares 12,523,070 11,361,643
=========== ===========
</TABLE>
See accompanying notes.
<PAGE>
SAZTEC INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 31, 1996 AND JUNE 30, 1995
<TABLE>
<CAPTION>
ASSETS
March 31, June 30,
Current assets 1996 1995
---- ----
(Unaudited)
<S> <C> <C>
Cash and cash equivalents $ 140,286 $ 644,101
Restricted cash 45,827 38,010
Accounts receivable, less allowance for doubtful accounts 2,118,017 2,215,771
Work in process 749,844 580,842
Prepaid expenses and other current assets 126,819 160,076
----------- -----------
Total current assets 3,180,793 3,638,800
Property and equipment, net 689,249 1,164,048
Other assets
Goodwill and other intangible assets, less accumulated amortization 177,854 208,182
Deposits and other assets 137,328 144,632
----------- -----------
Total assets $ 4,185,224 $ 5,155,662
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
March 31, June 30,
Current liabilities 1996 1995
---- ----
(Unaudited)
Notes payable $ 120,000 $ 650,091
Current portion of long-term debt and capital lease obligations 138,108 193,320
Common stock subject to repurchase 45,000 100,000
Accounts payable 1,284,162 1,028,708
Accrued liabilities 555,103 1,350,596
Customer deposits 625,008 1,085,479
----------- ----------
Total current liabilities 2,767,381 4,408,194
Long-term debt and capital lease obligations 479,799 105,686
Accrued expenses, non-current 354,335
Common stock subject to repurchase 55,000
Stockholders' equity
Commonstock-no par value; 20,000,000 shares authorized; 12,513,651
shares issued at March 31, 1996, and 12,543,851 shares issued
at June 30, 1995 11,134,811 11,134,811
Contributed capital 14,498 14,498
Accumulated deficit (10,477,566) (10,373,201)
Cumulative translation adjustment (143,034) (134,326)
----------- ----------
Total stockholders' equity 528,709 641,782
----------- ----------
Total liabilities and stockholders' equity $ 4,185,224 $ 5,155,662
=========== ===========
</TABLE>
See accompanying notes.
<PAGE>
SAZTEC INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED MARCH 31, 1996 AND 1995
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
---- ----
Cash flows from operating activities:
<S> <C> <C>
Net loss $(104,365) $(2,204,559)
Adjustments to reconcile net loss to net cash
(used in) provided by operating activities:
Depreciation and amortization 428,794 1,053,884
Provision for bad debts 16,186 14,198
(Gain) Loss on sale of assets (26,751) 345,457
Gain on sale of assets of divisions sold (231,154)
Write-off of work in process related to litigation 139,839
Other 13,299 16,286
Changes in assets and liabilities:
Accounts receivable (36,449) 1,154,890
Work in process (370,665) 123,79
Prepaid expenses and other current assets (22,914) (121,349)
Deposits and other assets 6,845 1,290
Accounts payable 425,689 (340,786)
Accrued liabilities (565,087) 97,990
Customer deposits and non-current accrued expenses 265,663 499,561
Income taxes payable (26,879)
--------- -----------
Net cash (used in) provided by operating activities (87,949) 640,660
--------- -----------
Cash flows from investing activities:
Additions to property and equipment (49,917) (252,618)
Proceeds from the sale of property and equipment 74,905 30,644
Payments received on notes receivable 12,663 93,413
(Increase) decrease in restricted cash (7,826) 71,021
--------- -----------
Net cash provided by (used in) investing activities 29,825 (57,540)
--------- -----------
Cash flows from financing activities:
Principal payments on debt and capital lease
obligations (146,709) (412,227)
Borrowings on notes payable 2,621,001 3,951,143
Payments on notes payable (2,879,478) (4,124,588)
Payments on common stock repurchase obligation (60,000)
Net proceeds from issuance of common stock 729,688
--------- -----------
Net cash (used in) provided by financing activities (405,186) 84,016
--------- -----------
Effect of exchange rate changes on cash (40,505) 9,079
--------- -----------
Net (decrease) increase in cash (503,815) 676,215
Cash at beginning of period 644,101 386,263
--------- -----------
Cash at end of period $ 140,286 $ 1,062,478
========= ===========
</TABLE>
See accompanying notes.
<PAGE>
SAZTEC INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED MARCH 31, 1996 AND 1995
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
---- ----
<S> <C> <C>
Supplemental schedule of non-cash investing and financing activities:
Purchase of property and equipment through issuance of notes payable and
capital lease obligations $205,061
========
Purchase of outstanding minority interest of Saztec Europe, Ltd through
issuance of common stock; increase in goodwill $ 53,625
========
Supplemental disclosures of cash flow information: Cash paid during the
period for:
Interest $112,160 $124,420
======== ========
Income taxes $ 38,758
========
</TABLE>
See accompanying notes.
<PAGE>
SAZTEC INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1996 AND 1995
Note 1. Accounting Policies
-------------------
The accompanying unaudited consolidated financial statements include all
adjustments (consisting only of normal recurring accruals) which, in the opinion
of management, are necessary for a fair presentation of financial position,
results of operations and cash flows. Results of operations for interim periods
are not necessarily indicative of results to be expected for a full year.
Certain reclassifications have been made to the fiscal 1995 financial statements
to conform with the current year's presentation.
Note 2. Common Stock
------------
In connection with the Company's acquisition of the outstanding minority
interest of Saztec Europe, Ltd. in 1991, the Company granted a put option to the
selling shareholders to repurchase 120,000 shares at $2.00 per share. The put
option is exerciseable at 10,000 shares ($20,000) per quarter through April,
1996. During the quarters ended September 30 and December 31, 1995 10,000 shares
of common stock at $20,000 were repurchased by the Company in each quarter
pursuant to the terms of the put option. For the quarter ended March 31, 1996
5,100 shares at $10,200 were repurchased. Of the stock repurchased during the
periods and in prior periods, $90,200 remained payable to the selling
shareholders at March 31, 1996.
Note 3. Sale of Divisions
-----------------
In June 1995, management agreed to sell the assets of the Knightswade Microfilm
Division, based in Winchester, England and in August 1995, the Marketing
Fulfillment Division based in Billerica, Massachusetts. The sales of both
divisions were completed on September 1, 1995. Operating results for both
divisions for the three months ended September 30, 1995 and the three and nine
months ended March 31, 1995 were as follows:
3 MONTHS 3 MONTHS 9 MONTHS
SEPTEMBER 30, 1995 MARCH 31, 1995 MARCH 31, 1995
------------------ -------------- --------------
Revenue $312,965 $736,368 $2,100,012
Gross profit (loss) (13,102) 129,354 286,617
Operating profit (loss) $(45,173) $45,735 $18,828
Gain on sale of division $231,154
Gain on sale of division includes gains and losses on sales of assets, severance
costs, and related closedown costs. A loss provision of $145,000 for the sale of
the Knightswade Microfilm Division was recognized in the quarter ended June 30,
1995.
<PAGE>
In June, 1995, the Company completed the sale of the U.K.-based Financial
Transaction Processing Division. During the quarter ended March 31, 1995 the
Company recorded an expected loss on disposal of $401,763, which included an
estimated loss of $63,108 from operations from April 1, 1995 until the date of
disposal. The following table summarizes division performance for the three and
nine month periods ending March 31, 1995.
3 months ended March 31, 1995 9 months ended March 31, 1995
----------------------------- -----------------------------
Revenue $247,298 $1,029,488
Gross loss (32,238) (31,889)
Operating loss $(78,056) $(126,455)
Note 4. Litigation
----------
On December 14, 1995, an order was entered granting the Summary Judgement motion
of Digital Equipment Corporation ("DEC") in the case in which the Company had
sued DEC in connection with a contract that had been terminated by DEC in 1993.
The decision effectively terminated the Company's claim against DEC. While the
Company believes that its case was meritorious, it determined during the period
for appeal, that it would be an imprudent use of the Company's resources to
pursue an appeal. The loss of the claim resulted in the Company's writing off of
the $139,839 work in process reserve maintained in connection with the contract.
The action was taken in the third quarter of the fiscal year, as a prior period
adjustment to the quarter in which the decision was rendered.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
Revenue for the nine months ended March 31, 1996, declined to $8,041,397 from
$10,669,163 for the nine months ended March 31, 1995, a decrease of $2,627,766,
or (24.6%). Excluding the revenue of the three divisions sold since September
30, 1994 (see Note 3), revenue for the nine months ended March 31, 1996, was
$7,728,399 compared to $7,539,664 for the same period in the prior year, an
increase of $188,735, or 2.5%. Revenue for the quarter ended March 31, 1996, net
of divisions sold, increased $167,048 over the same quarter in the prior year,
to $2,685,100.
U.S. revenue for the nine months ended March 31, 1996, excluding the divisions
sold, showed an improvement over the same period in the prior year, increasing
$197,567 to $3,525,204 from $3,327,637. European revenue, excluding the
divisions sold, held steady, showing a decrease of $8,832 over the nine month
period in the prior year, to $4,203,195. The sales mix in the United States and
Europe was relatively unchanged from the prior year period. Foreign revenue
continues to comprise 53-55% of consolidated revenues as expected. Revenue from
foreign sources comprised 54% of consolidated revenues, net of divisions sold,
for the first nine months of the current year as compared with 53% in the prior
year. Management expects revenue in both Europe and the United States to
maintain the improved level recognized in the third quarter through the fourth
quarter of the current fiscal year.
Gross profit of 31% of sales was achieved at $832,478 for the three months ended
March 31, 1996 compared to 25.1% at $631,722 , net of divisions sold, for the
third quarter of the prior year. The continued improved performance in the third
quarter of the current year raised the percentage to 29.4% for the nine month
period as compared with a gross profit percentage of 23.1% , net of divisions
sold, for the prior year nine month period. This improvement was effected
through consolidations in operations, increased efficiency of equipment put into
production through June 30, 1995, compensation rate reductions and management
restructuring efforts.
As a dollar amount, selling, general and administrative (SG&A) expenses for the
nine month period decreased $1,196,250 to $2,474,932 from $3,671,182 for the
same period in the prior year. Net of the current year second quarter charge of
$139,839 to write off work in process related to litigation and the prior year
third quarter charges of $411,134 against Castle Microfilm Ltd (Knightswade),
SG&A expense decreased $924,955 in the current year nine month period compared
to the nine month period in the prior year. For the quarter ended March 31, 1996
SG&A decreased to $691,192 from $1,178,123 (net of the $411,134 charges) for the
third quarter of the prior year. SG&A expense as a percentage of sales net of
one-time charges noted above is detailed in the following table:
SG&A as a Percent of Revenue
Quarter ended: Current Year Prior Year
- -------------- ------------ ----------
September 30 38.9% 27.3%
December 31 28.9% 30.5%
March 31 24.2% 33.6%
The increase in the first quarter as a percentage of sales is primarily the
result of lower total revenues for the quarter, the time lag between enacting
cost reduction measures and receiving the benefits therefrom, and the fixed
nature of many costs of operating the Company. Selling expenses per quarter
continued to decline through the third quarter of the current year. Selling
expenses for the third quarter of the current year were $218,702 compared with
$405,669 for the third quarter of the prior year. The decreases in both selling
and administrative expenses were primarily the result of disposals of divisions
since the prior year period. Other income for the six month period consists
mainly of amounts reported for the quarter ended September 30, 1995, of $52,199.
Gain on the disposition of assets in the ordinary course of business accounted
for $25,439 of this amount, with the balance being primarily favorable
adjustments to prior-period accruals for relocation costs from Dayton, Ohio and
Kansas City, Missouri to Billerica, Massachusetts, and estimated legal fees.
Other income for the same period in the prior year was $87,280, consisting
primarily of reversal of annual reserves accrued over a five year period
pursuant to employment contracts with four individuals. The additional
compensation was contingent upon attainment of certain performance goals which
were not met.
Income from operations of $141,286 for the quarter increased $833,067 compared
to a loss from operations net of divisions sold of $691,781 for the third
quarter of the prior year. Loss from operations for the nine month period, net
of divisions sold, for the current year decreased to $(225,333) from a
$(987,471) loss recognized in the prior year.
Net loss for the nine months ended March 31, 1996, was $(104,365) which includes
the benefit of a $231,154 gain on the sale of divisions reported in the quarter
ended Septermber 30, 1995, and a charge of $(139,839) against work in process
related to litigation in the second quarter. Net loss for the nine month period
in the prior year was $(2,204,559). This figure includes a charge for the
expected loss on the sale of FTP Swindon of $(401,763) and charges related to
Castle Microfilm Ltd for write-off of intangible assets recorded pursuant to
acquisition, lease abandonment, and employee termination costs, of $(411,134).
Cash flow from operating activities suffered from the loss for the nine months
and the increase in work in process over June 30, 1995 amounts. Work in process
increases are due primarily to a single large contract; management expects this
figure to be reduced as deliveries are made on the project in the fourth quarter
of the current year. Cash position was further hampered by cash used in
financing activities to meet required payments on equipment notes payable and to
reduce the amount outstanding on the line of credit. These payments, however
were crucial to negotiation of a new agreement with the Company's primary
lender. Cash generated from operations adjusted for non-cash amounts and
excluding changes in asset and liability accounts for the current nine-month
period of $235,848 is improved from the prior year shortfall of $(774,7374).
Capital Resources and Liquidity
- -------------------------------
The Company had a revolving credit agreement secured by accounts receivable,
work in process, property and equipment and other assets, bearing interest at
the lender's prime rate plus 4.0%. Available borrowings were 80% of domestic
trade receivables less than 90 days old, with an aggregate maximum borrowing
level that declined in steps from $650,000 on August 15, 1995, to $450,000 on
November 30, 1995. On September 30, 1995, the Company had borrowed $597,843
under the credit line. The credit line was payable in full on December 31, 1995.
The credit agreement contained various restrictive covenants that required,
among other things, the maintenance of a minimum level of stockholders' equity.
Due to the losses incurred through December 31, 1995, the Company was not in
compliance with that level and was technically in default of the agreement.
However, the lender continued to extend borrowings to the Company under the
credit agreement.
The Company entered into a new revolving credit agreement with the lender to
borrow $450,000 to replace the matured note at the lender's prime rate plus 4%.
Maximum borrowings under the new agreement decline $10,000 per month beginning
February 1, 1996. Unpaid principal amounts are due July 1, 1997. Available
borrowing is unchanged from the above matured note. The new agreement contains
covenants which require a minimum consolidated net stockholders' equity of
$500,000 and a ratio of consolidated total indebtedness to consolidated net
worth not to exceed 8:1. The Company was in compliance with all covenants
contained in the new agreement at March 31, 1996.
The Company's unrestricted cash balance of $140,286 on March 31, 1996 has
decreased by $503,815 compared to $644,101 on June 30, 1995. At March 31, 1996,
the Company's working capital was $413,412 , compared to a deficit of $769,394
at June 30, 1995. The improvement in working capital was primarily due to the
reclassification from current to non-current liabilities of the long-term
portion of the note payable to the bank of $271,614; a note given for trade
payables of $136,317 at 8% interest, with payments of $4,000 per month through
February 28, 1999, of which $87,721 is classified as long-term; and an agreement
entered into to repay amounts owed on the common stock repurchase over 31 months
at 8% interest, of which $55,000 is classified as long-term, at March 31, 1996.
The Company's working capital deficit at June 30, 1995, reflected a decrease of
$1,387,253 from the positive level of $617,859 on June 30, 1994, primarily due
to net operating losses.
The Company's ability to continue as a going concern is dependent upon its
ability to achieve its fiscal year 1996 operating plan. This plan includes the
disposition of unprofitable operations, disposition of profitable operations not
included in the Company's long-term business mission, renewal or replacement of
the line of credit, decreases in production and administration costs, and
increasing imaging revenues.
As described in Note 3, the Company has sold its Financial Transaction
Processing and Knightswade Microfilm Divisions. The Marketing Fulfillment
Division was also sold, because the division was not in line with the Company's
long-term business mission. As reported above, a new borrowing facility is in
place through July, 1997. As noted in the "Results of Operations" section above,
decreases in costs have been realized and are expected to continue. Further
administrative cost reductions are expected to be realized through the
consolidation of operations in Billerica, Massachusetts in the United States and
Ardrossan, Scotland in the United Kingdom. In December, 1995 the Company
completed a realignment and integration of its sales force, which has resulted
in reductions in selling costs. Imaging revenues decreased $10,578 to $739,569
in the nine month period ending March 31, 1996 over the prior year nine month
period. Management expects to maintain current revenue levels in all divisions
through the fourth quarter of fiscal year 1996.
The Company's continued existence is also dependent upon continuing to improve
its liquidity in the near future. Working capital could be adversely affected by
the failure to significantly reduce losses in the last quarter of fiscal 1996.
The Company is exploring opportunities for additional private placements. There
can be no assurance that the Company will be successful in these efforts. The
failure of the Company to solve its liquidity pressures could directly affect
the ability of the Company to operate as a going concern.
<PAGE>
SAZTEC INTERNATIONAL, INC.
MARCH 31, 1996 FORM 10-QSB
PART II - OTHER INFORMATION
ITEM 1. Legal Proceedings
-----------------
Refer to the Form 10-QSB/A for the quarter ended December 31, 1995.
ITEM 2. Changes in Securities
---------------------
Subsequent to December 31, 1995 the Company executed a new note to its prime
lender to replace its revolving line of credit agreement. The new agreement does
not change the rights of any holders of its securities.
ITEM 4. Submission of Matters to a Vote of Security Holders
---------------------------------------------------
The Annual Meeting of Shareholders was held February 22, 1996. All directors
were re-elected for one year. There was no solicitation in opposition to
management nominees. The results of other actions at the meeting are as follows:
1. Proposal to ratify appointment of Grant Thornton LLP as independent
certifying accountants for the year ended June 30, 1996:
For: 6,398,183
Against: 4,500
Abstain: 22,000
ITEM 5. Other Information
-----------------
As of November 10, 1995, the Company was not in compliance with the NASDAQ
SmallCap Market capital and surplus requirements. The Company's common stock was
subsequently delisted from the NASDAQ SmallCap Market and is now listed in the
OTC Bulletin Board.
ITEM 6. Exhibits and Reports on Form 8-K
--------------------------------
(a) Exhibits
The following Exhibit is filed by attachment to this Form 10-QSB:
Exhibit
Number Description of Exhibit Page
- ------ ---------------------- ----
27 Financial Data Schedule 15
(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.
Dated: May 14, 1996
SAZTEC INTERNATIONAL, INC.
--------------------------
(Registrant)
By: /s/ Thomas K. O'Loughlin
----------------------------
Thomas K. O'Loughlin
Treasurer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
SAZTEC INTERNATIONAL, INC.
FORM 10-QSB FOR MARCH 31, 1996 - EXHIBIT 27
FINANCIAL DATA SCHEDULE
UNDER ARTICLE 5 OF REGULATION S-X
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-END> MAR-31-1996
<CASH> 140,286
<SECURITIES> 0
<RECEIVABLES> 2,109,712
<ALLOWANCES> 38,252
<INVENTORY> 796,401
<CURRENT-ASSETS> 3,180,793
<PP&E> 4,060,468
<DEPRECIATION> 3,371,219
<TOTAL-ASSETS> 4,185,224
<CURRENT-LIABILITIES> 2,767,381
<BONDS> 479,799
0
0
<COMMON> 11,134,811
<OTHER-SE> (128,534)
<TOTAL-LIABILITY-AND-EQUITY> 4,185,224
<SALES> 0
<TOTAL-REVENUES> 8,041,397
<CGS> 0
<TOTAL-COSTS> 5,791,798
<OTHER-EXPENSES> (231,154)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 101,176
<INCOME-PRETAX> (95,355)
<INCOME-TAX> 9,010
<INCOME-CONTINUING> (104,365)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (104,365)
<EPS-PRIMARY> (.01)
<EPS-DILUTED> (.01)
</TABLE>
