SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended: May 31, 1996 Commission File No. 0-15587
------------ --------
EA Engineering, Science, and Technology, Inc.
-----------------------------------------------
(Exact Name of Registrant as Specified in its Charter)
Delaware 52-0991911
---------- ------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) identification No.)
11019 McCormick Road, Hunt Valley, Maryland 21031
-------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number including area code (410) 584-7000
---------------
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
----- -----
NUMBER OF SHARES OF REGISTRANT'S COMMON STOCK
OUTSTANDING AT JULY 12, 1996 6,159,936
-----------
1
<PAGE>
EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. & SUBSIDIARIES
INDEX
Page
----
PART I - FINANCIAL INFORMATION
Consolidated Balance Sheets - Assets.................................. 4
Consolidated Balance Sheets - Liabilities and Stockholders' Equity.... 5
Consolidated Statements of Operations................................. 6
Consolidated Statements of Cash Flows................................. 7
Notes to Consolidated Financial Statements............................ 8
Management's Discussion and Analysis of Financial Condition
and Results of Operations........................................11
PART II - OTHER INFORMATION...............................................14
EXHIBIT 1
Schedule of Weighted Average Shares Outstanding. . . . . . . . . . .16
EXHIBIT 27
Financial Data Schedule.............................................17
2
<PAGE>
PART I - FINANCIAL INFORMATION
The consolidated financial statements included herein for EA Engineering,
Science, and Technology, Inc. & Subsidiaries (the "Company") have been prepared
by the Company, without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. In management's opinion, the interim
financial data presented includes all adjustments (which include only normal
recurring adjustments) necessary for a fair presentation. Certain information
and footnote disclosures normally included in the consolidated financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted pursuant to such rules and regulations. However,
the Company believes that the disclosures are adequate to understand the
information presented. It is suggested that these consolidated financial
statements be read in conjunction with the Company's August 31, 1995
consolidated financial statements and notes thereto included in the Company's
annual report on Form 10-K dated November 22, 1995.
3
<PAGE>
EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
May 31, August 31,
1996 1995
----------- ----------
<S> <C>
CURRENT ASSETS:
Cash and cash equivalents....................... $ 1,310,800 $ 3,813,900
Accounts receivable, net........................ 12,298,500 14,858,100
Costs and estimated earnings in excess of
billings on uncompleted contracts............ 14,016,900 10,735,000
Prepaid expenses and other...................... 2,029,800 1,711,300
----------- -----------
Total Current Assets......................... 29,656,000 31,118,300
----------- -----------
PROPERTY AND EQUIPMENT, at cost:
Furniture, fixtures and equipment............... 14,994,800 14,403,800
Leasehold improvements.......................... 3,682,400 3,652,400
----------- -----------
18,677,200 18,056,200
Less-Accumulated depreciation and amortization.. (15,464,200) (14,255,900)
----------- -----------
Net Property and Equipment................... 3,213,000 3,800,300
----------- -----------
OTHER ASSETS....................................... 1,449,000 1,449,200
----------- -----------
Total Assets................................. $34,318,000 $36,367,800
=========== ===========
</TABLE>
The accompanying notes are an integral part of these balance sheets.
4
<PAGE>
EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
May 31, August 31,
1996 1995
------------ -------------
<S> <C>
CURRENT LIABILITIES:
Accounts payable.................................. $ 5,209,100 $ 5,960,800
Accrued expenses.................................. 622,800 856,500
Accrued salaries, wages and benefits.............. 3,985,200 4,595,700
Income taxes payable.............................. -- 227,600
Current portion of long-term debt................. 705,100 765,500
Billings in excess of costs and estimated
earnings on uncompleted contracts.............. 1,100,000 1,049,300
----------- -----------
Total Current Liabilities...................... 11,622,200 13,455,400
----------- -----------
LONG-TERM DEBT, net of current portion............... 3,651,400 4,032,700
----------- -----------
Total Liabilities 15,273,600 17,488,100
----------- -----------
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value; 10,000,000 shares
authorized; 6,160,600 and 6,091,900 shares
issued and outstanding......................... 61,600 60,900
Preferred stock, $.01 par value; 8,000,000 shares
authorized; none issued........................ -- --
Capital in excess of par value.................... 10,754,100 10,538,700
Retained earnings................................. 8,228,700 8,280,100
----------- -----------
Total Stockholders' Equity..................... 19,044,400 18,879,700
----------- -----------
Total Liabilities and Stockholders' Equity.. $34,318,000 $36,367,800
=========== ===========
</TABLE>
The accompanying notes are an integral part of these balance sheets.
5
<PAGE>
EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
May 31, May 31, May 31, May 31,
1996 1995 1996 1995
----------- ----------- ---------- ----------
<S> <C>
Total revenue............................. $22,339,700 $23,427,100 $ 64,472,600 $ 67,387,300
Less - Subcontractor costs................ (5,708,600) (4,901,400) (15,971,300) (14,167,300)
----------- ----------- ------------ ------------
Net revenue........................... 16,631,100 18,525,700 48,501,300 53,220,000
----------- ----------- ------------ ------------
Operating expenses:
Direct salaries and other operating... 15,359,400 16,160,400 45,831,000 46,363,800
General and administrative............ 792,500 1,168,500 2,465,400 3,417,900
----------- ----------- ------------ ------------
Total operating expenses........... 16,151,900 17,328,900 48,296,400 49,781,700
Income from operations.................... 479,200 1,196,800 204,900 3,438,300
Interest expense, net..................... (73,700) (104,100) (290,600) (309,800)
----------- ----------- ------------ ------------
Income (loss) before income taxes......... 405,500 1,092,700 (85,700) 3,128,500
Provision for (benefit from)
income taxes.......................... 162,200 437,100 (34,300) 1,251,500
----------- ----------- ------------ ------------
Net income (loss)......................... $ 243,300 $ 655,600 $ (51,400) $ 1,877,000
=========== =========== ============ ============
Net income (loss) per share............... $0.04 $0.11 $(0.01) $0.30
====== ===== ====== =====
Weighted average shares outstanding....... 6,194,000 6,186,300 ` 6,127,700 6,164,800
========= ========= ========= =========
</TABLE>
The accompanying notes are an integral part of these statements.
6
<PAGE>
EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Nine Months Ended
-------------------------------
May 31, May 31,
1996 1995
----------- -----------
<S> <C>
CASH FLOWS USED FOR OPERATING ACTIVITIES:
Net income (loss)................................ $ (51,400) $ 1,877,000
Noncash expenses included in net income (loss) -
Depreciation and amortization................ 1,208,300 1,236,700
Deferred income taxes........................ (85,600) --
Current provision for (benefit from)
income taxes.............................. 51,300 851,300
Net (increase) decrease in noncash assets -
Accounts receivable, net..................... 2,559,600 (27,200)
Costs and estimated earnings in excess of
billings on uncompleted contracts.......... (3,281,900) (5,618,600)
Prepaid expenses and other assets............ 14,700 284,500
Net increase (decrease) in nondebt liabilities -
Accounts payable and accrued expenses........ (1,595,900) 274,300
Refunds of income taxes...................... 2,200 13,400
Payments of income taxes..................... (528,500) (681,200)
Billings in excess of costs and estimated
earnings on uncompleted contracts.......... 50,700 142,700
----------- -----------
Net cash flows used for operating activities. (1,656,500) (1,647,100)
------------ ------------
CASH FLOWS FROM (USED FOR) FINANCING ACTIVITIES:
Proceeds from issuance of common stock........... 216,100 736,500
Reduction of long-term debt...................... (441,700) (635,000)
----------- -----------
Net cash flows from (used for) financing
activities................................. (225,600) 101,500
----------- -----------
CASH FLOWS USED FOR INVESTING ACTIVITIES:
Purchase of equipment, net....................... (621,000) (938,700)
----------- -----------
Net cash flows used for investing activities.. (621,000) (938,700)
----------- -----------
NET DECREASE IN CASH AND CASH EQUIVALENTS............ (2,503,100) (2,484,300)
----------- -----------
CASH AND CASH EQUIVALENTS, beginning of period....... 3,813,900 3,988,500
----------- -----------
CASH AND CASH EQUIVALENTS, end of period............. $ 1,310,800 $ 1,504,200
=========== ===========
</TABLE>
The accompanying notes are an integral part of these statements.
7
<PAGE>
EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED MAY 31, 1996 AND 1995
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Basis of Presentation--
The accompanying consolidated financial statements present the accounts of
EA Engineering, Science, and Technology, Inc. (EA) and its wholly-owned
subsidiary, EA Financial, Inc., and its wholly-owned subsidiaries, EA Global,
Inc., and EA Engineering, Science, and Technology de Mexico, S.A. de C.V. (EA de
Mexico). The entities are collectively referred to herein as the "Company." All
significant intercompany transactions have been eliminated in consolidation.
Revenue Recognition--
The Company is a multidisciplinary environmental services and consulting
engineering organization providing a wide range of consulting, engineering,
remediation, and analytical services. These services are generally performed
under time and material, fixed price and cost plus fixed fee contracts which
vary in length from one month to ten years.
The Company accounts for contract revenues and costs under fixed price
contracts using the percentage-of-completion method. The
percentage-of-completion is determined using the "cost-to-cost" method for each
contract cost component. Under this method, direct labor and other contract
costs incurred to date are compared to periodically revised estimates of the
total of each contract cost component at contract completion to determine the
percentage of revenues to be recognized. Revenues from time and material and
cost plus fixed fee contracts are recognized currently as the work is performed.
Provision for estimated losses on uncompleted contracts, to the full extent of
the loss, is made during the period in which the Company first becomes aware
that a loss on a contract is probable.
Contract costs and estimated earnings recognized in excess of amounts billed
are classified as current assets under "costs and estimated earnings in excess
of billings on uncompleted contracts." Billings in excess of contract costs and
estimated earnings are classified as current liabilities under "billings in
excess of costs and estimated earnings on uncompleted contracts."
Generally, contracts provide for the billing of costs incurred and estimated
fees on a monthly basis. Amounts included in "costs and estimated earnings in
excess of billings on uncompleted contracts" in the accompanying financial
statements will be billed within twelve months of the balance sheet date.
Cash and Cash Equivalents--
Cash equivalents consist of obligations and money market instruments with a
purchased original maturity of three months or less, stated at cost, which
approximates market.
8
<PAGE>
Property and Equipment--
Property and equipment are depreciated using the straight-line method over
their estimated useful lives ranging from 3 to 10 years. Leasehold improvements
are amortized over the shorter of the estimated useful life or the term of the
lease.
Major Clients--
For the nine months ended May 31, 1996 and 1995, various agencies of the
federal government provided 53% and 66% of net revenue, and as of May 31, 1996
accounted for approximately 50% of the Company's accounts receivable and costs
and estimated earnings in excess of billings on uncompleted contracts.
Segment Information--
The Company operates within one industry segment, providing a wide range of
consulting, engineering, remediation, and analytical services.
Reclassifications--
Certain prior year balances have been reclassified to conform with current
year presentation.
Supplemental Disclosures of Cash Flow Information--
Cash paid during the nine months ended May 31, 1996 and 1995 for interest
was $370,200 and $376,100, respectively. Retirements of property and equipment
for the same periods were $0 and $45,800, respectively.
Short-term borrowings information for the nine months ended May 31, 1996 and
1995 is as follows:
Nine Months Ended
May 31,
--------------------
1996 1995
------ -----
Balance as of end of period....................... $ -- $ --
Maximum amount outstanding during the period...... 1,721,800 2,462,900
Average outstanding month-end balance during
the period..................................... 263,200 175,200
Weighted average interest rate during the period.. 8.5% 9.0%
Interest rate at the end of period................ 8.3% 9.0%
The Company's debt agreements require that the Company maintain certain
financial ratios.
As of May 31, 1996, the Company restructured its bank financing arrangements
(see Note 2).
Note 2. BANK FINANCING ARRANGEMENTS:
The Company renegotiated its revolving line of credit arrangement with a
commercial bank in May 1996. The new borrowing facility consists of a long-term
revolving line of credit through January 31, 1998 for up to $12,500,000.
Borrowings under the facility are unsecured. Interest is charged at either 90%
9
<PAGE>
of the bank's prime rate or LIBOR + 150 basis points, at the Company's election
on a monthly basis. The interest rate is subject to quarterly modifications
based on certain financial ratios with a maximum rate of the bank's prime or
LIBOR + 200 basis points.
Note 3. NET INCOME (LOSS) PER SHARE:
Net income (loss) per share amounts are based on the weighted average number
of shares of common stock and common stock equivalents outstanding during the
period.
Note 4. PROFIT SHARING AND EMPLOYEE INCENTIVE PLANS:
EA maintains a defined contribution plan covering all employees who are at
least 21 years of age and have completed one year of credited service, as
defined by the plan. The plan provides for discretionary employer contributions
for each fiscal year, in amounts determined annually by the Board of Directors,
and for voluntary employee contributions. The plan also includes a 401(k)
provision, allowing for Company matching contributions. For the nine months
ended May 31, 1996 and 1995, discretionary employer matching contributions were
$555,900 and $535,200, respectively.
The Company also maintains an Incentive Compensation Plan which provides for
both quarterly incentive payouts to all employees and annual incentive payouts
to certain management personnel if pre-determined goals, approved by the Board
of Directors, are exceeded. For the nine months ended May 31, 1995, the total
amount expensed under the incentive plan was $670,000. There was no expense
incurred under the incentive plan for the nine months ended May 31, 1996.
Note 5. STOCK OPTION AND EMPLOYEE STOCK PURCHASE PLANS:
The Company maintains a Stock Option Plan which provides for the grant of
incentive and nonqualified stock options to certain key employees and officers
of the Company. The exercise price of an option granted under the Plan may not
be less than the fair market value of the underlying shares of Common Stock on
the date of the grant. A total of 177,771 options are issued and outstanding as
of May 31, 1996 having an average exercise price of $4.528. There were 394,841
shares available for issuance as of May 31, 1996.
The Company maintains an Employee Stock Purchase Plan to provide eligible
employees the opportunity to purchase shares of the Company's Common Stock
through voluntary payroll deductions. Under the Plan, eligible employees may
purchase shares monthly through payroll deductions at 95% of current market
value at the time of purchase. The Company pays all administrative expenses
related to employee purchases. A total of 218,626 shares remain authorized for
distribution under the Plan as of May 31, 1996.
The Company maintains two Non-Employee Director Stock Option Plans (1995 and
1993) which provide for the granting of nonqualified stock options to its three
non-employee directors. The exercise price of the 30,000 options, which were
outstanding as of May 31, 1996, ranged between $2.445 and $6.125, which equaled
the fair market value at the date of grant. A total of 28,500 options remain
reserved for the Director Stock Option Plans as of May 31, 1996.
10
<PAGE>
EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. & SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
The Company's results of operations are significantly affected by the timing
of the award of contracts, the timing of performance on contracts, and the
extent to which the Company's employees are performing billable tasks as opposed
to engaging in preparing bid proposals and other required non-billable
activities. Due to these factors, the results of operations for interim periods
are not necessarily indicative of the results of operations for longer periods
and interim period comparisons may not be as meaningful as comparisons over
longer periods.
Three Months Ended May 31, 1996
Net revenue for the three months ended May 31, 1996 was $16,631,100, a
decrease of 10.2% from $18,525,700 for the same period in 1995. The decrease was
attributable to lower contract volume associated with the Department of Defense
activities, partially offset by increases in Industrial, State, and Local
Government, and Federal Non-DOD agency activities and increased recovery of
general and administrative expenses and fees on subcontracted work.
Additionally, price competition remains intense within the environmental
services industry, further surpressing revenue levels compared to the prior
year's third quarter.
Direct salaries and other operating costs decreased to $15,359,400 from
$16,160,400, representing 92.4% and 87.2% of net revenue for the three months
ended May 31, 1996 and 1995, respectively. As a percentage of net revenue, the
increase was attributable to decreased staff utilization, increased costs
related to information system enhancements, and increased international
marketing and proposal costs. The increase was partially offset by a decrease in
incentive compensation expense.
General and administrative costs decreased to $792,500 from $1,168,500, and
decreased to 4.8% from 6.3% of net revenue, respectively. The decrease in costs
was related to a decrease in incentive compensation expense and the reduction of
administrative staff particularly in the fourth quarter of fiscal 1995 and first
quarter of fiscal 1996.
As a result of the above factors, income from operations for the three months
ended May 31, 1996 was $479,200 or 2.9% of net revenue compared to income from
operations of $1,196,800 or 6.5% of net revenue for the three months ended May
31, 1995. Interest expense, net, decreased $30,400 for the three months ended
May 31, 1996, compared to the prior year. The net decrease in interest expense
is primarily the result of lower interest rates, and decreasing long-term
principal balances, partially offset by increased borrowings on the revolving
credit facility.
The provision for income taxes was $162,200 for the three months ended May
31, 1996 compared to a provision for income taxes of $437,100 for the three
months ended May 31, 1995, representing effective rates of 40% for both years.
11
<PAGE>
Net income for the three months ended May 31, 1996 was $243,300, 1.5% of net
revenue, compared to net income of $655,600, 3.5% of net revenue for the three
months ended May 31, 1995.
Nine Months Ended May 31, 1996
Net revenue for the nine months ended May 31, 1996 was $64,472,600, a
decrease of 4.3% from $67,387,300 for the same period in 1995. The decrease was
attributable to lower contract volume associated with the Department of Defense
activities, partially offset by increases in Industrial, State, and Local
Government, Federal Non-DOD agency activities, and increased recovery of General
and Administrative expenses and fees on subcontracted work. Price competition
has been intense within the environmental services industy, further surpressing
revenue levels compared to the same period last year.
Direct salaries and other operating costs decreased to $45,831,000 from
$46,363,800, representing 94.5% and 87.1% of net revenue for the nine months
ended May 31, 1996 and 1995, respectively. As a percentage of net revenue, the
increase was attributable to decreased staff utilization, increased costs
related to information system enhancements, and increased international
marketing and proposal costs, offset by decreases in incentive compensation
expense.
General and administrative costs decreased to $2,465,400 from $3,417,900, and
decreased to 5.1% and 6.4% of net revenue, respectively. The decrease in costs
was related to decreases in incentive compensation and the reduction of
administrative staff in the fourth quarter of fiscal 1995.
As a result of the above factors, income from operations for the nine months
ended May 31, 1996 was $204,900, or .4% of net revenue, as compared to income
from operations of $3,438,300, or 6.5% of net revenue, for the nine months ended
May 31, 1995. Interest expense, net, decreased $19,200 for the nine months ended
May 31, 1996, compared to the prior year. The net decrease in interest expense
is primarily the result of lower interest rates and decreasing long-term debt
principal balances, partially offset by increased borrowings under the revolving
line of credit to fund federal subcontracting payment requirements on certain
contracts.
The benefit from income taxes was $34,300 for the nine months ended May 31,
1996, compared to a provision for income taxes of $1,251,500 for the nine months
ended May 31, 1995, representing effective rates of 40% for both years.
Net loss for the nine months ended May 31, 1996 was $51,400, or .1% of net
revenue, compared to net income of $1,877,000, or 3.5% of net revenue for the
nine months ended May 31, 1995.
Liquidity and Capital Resources
Cash and cash equivalents decreased by $2,503,100 for the nine months ended
May 31, 1996. The decrease principally resulted from increases in costs and
estimated earnings in excess of billings on uncompleted contracts, the decrease
in accounts payable and accrued expenses, long-term debt principal repayments,
and income tax payments. This decrease was partially offset by a decrease in
accounts receivable.
12
<PAGE>
The Company's capital expenditures, consisting primarily of purchases of
equipment and leasehold improvements, were approximately $621,000 and $938,700
for the nine months ended May 31, 1996 and 1995, respectively.
During the nine-month period ended May 31, 1996, the Company made repayments
of $441,700 on its long-term debt, decreasing the balance to $4,356,500 as of
May 31, 1996 from the August 31, 1995 balance of $4,798,200. The Company had no
short-term borrowings under its revolving line of credit at May 31, 1996,
consistent with August 31, 1995.
The Company's existing funds, cash from operations, and the available portion
of its $12,500,000 credit arrangement are expected to be sufficient to meet the
Company's present cash needs. Also, as part of its banking arrangements, the
Company has a $2,000,000 available line of credit for equipment financing. The
Company also has access to certain capital equipment financing arrangements
through various equipment suppliers and leasing companies. The Company also
believes it has the ability to raise capital through public or private placement
of debt and will pursue such options as the need arises to expand business
services, facilities, or acquire equipment in conjunction with a review of the
most cost effective means for the Company and its stockholders.
While the Company believes that there is sufficient market demand to support
its contracting capacity, there can be no assurance that this demand will exist
or continue. Although the Company has the ability to reduce its professional
staff in periods of reduced demand, it may choose not to make full reductions in
such periods, with resulting adverse effects on operations.
13
<PAGE>
EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. & SUBSIDIARIES
PART II - OTHER INFORMATION
Item 6
(a)
Exhibits
None
(b)
Reports on Form 8-K
None
14
<PAGE>
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.
EA Engineering, Science, and
Technology, Inc. & Subsidiaries
-------------------------------
(Registrant)
July 12, 1996 By: /s/ Loren D. Jensen
- ------------------ -------------------------
(Signature)
Loren D. Jensen
------------------------
Chairman, President, and
Chief Executive Officer
------------------------
(Title)
July 12, 1996 By: /s/ Joseph A. Spadaro
- ----------------- ---------------------------
(Signature)
Joseph A. Spadaro
---------------------------
Executive Vice President,
Chief Financial Officer
----------------------------
(Title)
15
<PAGE>
EXHIBIT 1
EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC.
SCHEDULE OF WEIGHTED AVERAGE SHARES OUTSTANDING
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
May 31, May 31, May 31, May 31,
1996 1995 1996 1995
------------ ----------- ----------- -----------
<S> <C>
Weighted average shares of common stock 6,155,700 6,061,700 6,127,700 5,965,200
Impact of dilutive stock options of
207,800 and 357,200 as of May 31, 1996
and May 31, 1995, respectively 38,300 124,600 -- 199,600
--------- --------- --------- ---------
Weighted average shares of common stock 6,194,000 6,168,300 6,127,700 6,164,800
========= ========= ========= =========
</TABLE>
16
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> AUG-31-1996
<PERIOD-START> SEP-01-1995
<PERIOD-END> MAY-31-1996
<CASH> 1,310,800
<SECURITIES> 0
<RECEIVABLES> 26,315,400
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 29,656,000
<PP&E> 18,677,200
<DEPRECIATION> 15,464,200
<TOTAL-ASSETS> 34,318,000
<CURRENT-LIABILITIES> 11,622,200
<BONDS> 0
0
0
<COMMON> 61,600
<OTHER-SE> 18,982,800
<TOTAL-LIABILITY-AND-EQUITY> 34,318,000
<SALES> 48,501,300
<TOTAL-REVENUES> 48,501,300
<CGS> 48,296,400
<TOTAL-COSTS> 48,296,400
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 290,600
<INCOME-PRETAX> (85,700)
<INCOME-TAX> (34,300)
<INCOME-CONTINUING> (51,400)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (51,400)
<EPS-PRIMARY> (.01)
<EPS-DILUTED> (.01)
</TABLE>
