<PAGE>
- -------------------------------------------------------------------------------
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 September 27, 1997
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 No. 33-9875
----------------------------------
BOSTON ACOUSTICS, INC.
(Exact name of registrant as specified in its charter)
Massachusetts 04-2662473
(State or other jurisdiction (I.R.S. employer
of incorporation or identification no.)
organization)
300 Jubilee Drive
Peabody, Massachusetts 01960
(Address of Principal Executive Offices) (Zip Code)
(978) 538-5000
(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 []
There were 3,307,669 shares of Common Stock issued and outstanding as of
November 1, 1997.
- --------------------------------------------------------------------------------
<PAGE>
Boston Acoustics, Inc.
INDEX
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Part I: Financial Information
Item 1. Financial Statements
Consolidated Balance Sheets (Unaudited)-
March 29, 1997 and September 27, 1997 4
Consolidated Statements of Income (Unaudited)-
Three months and Six months ended September 28, 1996
and September 27, 1997 6
Consolidated Statements of Cash Flows (Unaudited)-
Six months ended September 28, 1996 and
September 27, 1997 7
Notes to Unaudited Consolidated Financial Statements 8
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 10
Part II: Other Information
Items 1 through 6 13
Signatures 14
</TABLE>
2
<PAGE>
PART I: FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENTS
3
<PAGE>
Boston Acoustics, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
ASSETS
<TABLE>
<CAPTION>
MARCH 29, 1997 SEPTEMBER 27, 1997
-------------- ------------------
<S> <C> <C>
Current Assets:
Cash and cash equivalents.............................................. $ 4,937,232 $ 980,144
Short-term investments................................................. 2,594,454 675,553
Accounts receivable, net of reserves of
approximately $411,000
and $430,000, respectively........................................... 9,328,881 12,916,770
Inventories............................................................ 9,540,757 13,352,407
Deferred income taxes.................................................. 791,000 791,000
Prepaid expenses and other current assets.............................. 809,761 362,605
-------------- ------------------
Total current assets................................................ 28,002,085 29,078,479
-------------- ------------------
Property and Equipment, at cost:
Land................................................................... 1,433,365 1,433,365
Building............................................................... 7,012,347 7,025,557
Machinery and equipment................................................ 7,414,269 7,883,542
Office equipment and furniture......................................... 1,597,499 1,724,077
Motor vehicles......................................................... 373,177 267,551
-------------- ------------------
17,830,657 18,334,092
Less-accumulated depreciation
and amortization..................................................... 6,936,205 7,445,385
-------------- ------------------
10,894,452 10,888,707
-------------- ------------------
Other Assets:
Long-term investments.................................................. 1,022,164 --
Other assets........................................................... 2,311,411 2,040,370
-------------- ------------------
Total other assets................................................... 3,333,575 2,040,370
-------------- ------------------
$ 42,230,112 $ 42,007,556
-------------- ------------------
-------------- ------------------
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements.
4
<PAGE>
Boston Acoustics, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY
<TABLE>
<CAPTION>
MARCH 29, 1997 SEPTEMBER 27, 1997
-------------- ------------------
<S> <C> <C>
Current Liabilities:
Accounts payable.............................................................. $ 1,020,146 $ 2,836,328
Accrued payroll and payroll-
related expenses............................................................ 1,210,101 1,341,528
Dividends payable............................................................. 523,279 413,462
Current maturity of line of credit............................................ -- 2,825,000
Other accrued expenses........................................................ 499,446 989,634
Accrued income taxes.......................................................... 68,135 393,163
-------------- ------------------
Total current liabilities................................................ 3,321,107 8,799,115
-------------- ------------------
Line of credit (Note 4)....................................................... -- 15,475,000
Commitments
Shareholders' Equity:
Common stock, $.01 par value
Authorized--6,000,000 shares
Issued--4,602,954 and 4,622,620
shares at March 29, 1997 and
September 27, 1997, respectively......................................... 46,029 46,226
Additional paid-in capital.................................................... 4,973,409 5,424,401
-------------- ------------------
Retained earnings............................................................. 38,322,082 40,607,781
-------------- ------------------
43,341,520 46,078,408
Less-Treasury stock, 416,720 and 1,309,921
shares at March 29, 1997 and
September 27, 1997, respectively, at cost................................... 4,432,515 28,344,967
-------------- ------------------
Total shareholders' equity................................................ 38,909,005 17,733,441
-------------- ------------------
$ 42,230,112 $ 42,007,556
-------------- ------------------
-------------- ------------------
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
5
<PAGE>
Boston Acoustics, Inc. and Subsidiaries
Consolidated Statements of Income
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
---------------------------- ----------------------------
<S> <C> <C> <C> <C>
SEPTEMBER 28, SEPTEMBER 27, SEPTEMBER 28, SEPTEMBER 27,
1996 1997 1996 1997
------------- ------------- ------------- -------------
Net sales........................................... $ 12,199,188 $ 18,135,969 $ 23,251,045 $ 30,551,245
Cost of goods sold.................................. 7,172,450 10,909,372 13,449,191 17,883,510
------------- ------------- ------------- -------------
Gross profit...................................... 5,026,738 7,226,597 9,801,854 12,667,735
------------- ------------- ------------- -------------
Selling and
marketing expenses................................ 1,789,233 1,944,403 3,359,305 3,748,072
General and
administrative expenses........................... 727,793 1,162,937 1,312,010 2,080,942
Engineering and
development expenses.............................. 770,051 587,049 1,502,143 1,563,349
------------- ------------- ------------- -------------
Total expenses................................. 3,287,077 3,694,389 6,173,458 7,392,363
------------- ------------- ------------- -------------
Income from operations......................... 1,739,661 3,532,208 3,628,396 5,275,372
Interest income..................................... 116,422 45,699 263,039 142,613
Interest expense.................................... (5,861) (374,560) (10,868) (441,404)
------------- ------------- ------------- -------------
Income before provision
for income taxes............................. 1,850,222 3,203,347 3,880,567 4,976,581
Provision for income taxes.......................... 647,000 1,227,000 1,358,000 1,866,000
------------- ------------- ------------- -------------
Net income....................................... $ 1,203,222 $ 1,976,347 $ 2,522,567 $ 3,110,581
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Net income per common share......................... $ .28 $ .58 $ .58 $ .83
------------- ------------- ------------- -------------
Weighted average number of
common and common
equivalent shares
outstanding....................................... 4,313,499 3,388,454 4,355,990 3,745,680
------------- ------------- ------------- -------------
Dividends per share................................. $ .125 $ .125 $ .25 $ .25
------------- ------------- ------------- -------------
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
6
<PAGE>
Boston Acoustics, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
--------------------------------------
<S> <C> <C>
SEPTEMBER 28, 1996 SEPTEMBER 27, 1997
------------------ ------------------
Cash flows from operating activities:
Net income............................................................. $ 2,522,567 $ 3,110,581
Adjustments to reconcile net income to net cash
provided by (used in) operating activities-
Depreciation and amortization.......................................... 785,482 809,523
Compensation expense related to restricted
stock and warrants................................................... -- 181,012
Changes in assets and liabilities, net of acquisition of
Snell Acoustics in Fiscal 1997-
Accounts receivable.................................................... (348,827) (3,587,889)
Inventories............................................................ (202,925) (3,811,650)
Prepaid expenses and other current assets.............................. (18,500) 447,156
Accounts payable....................................................... 329,994 1,816,182
Accrued payroll and other accrued expenses............................. 3,992 621,615
Accrued income taxes................................................... (34,843) 325,028
------------------ ------------------
Net cash provided by (used in) operating activities.................. 3,036,940 (88,442)
------------------ ------------------
Cash flows from investing activities:
Acquisition of Snell Acoustics......................................... (2,602,475) --
Purchase of property and equipment, net................................ (927,961) (503,435)
Purchase of held-to-maturity investments............................... (1,604,391) --
Purchase of available-for-sale investments............................. (250,000) --
Proceeds from sale of available-for-sale investments................... 825,857 --
Proceeds from sale of held-to-maturity investments..................... 3,148,536 2,941,065
Increase in other assets............................................... (15,316) (29,301)
------------------ ------------------
Net cash provided by (used in) investing activities.................. (1,425,750) 2,408,329
------------------ ------------------
Cash flows from financing activities:
Dividends paid......................................................... (1,096,625) (934,700)
Purchase of treasury stock............................................. (2,698,925) (23,912,452)
Proceeds from line of credit........................................... -- 21,125,000
Payments on line of credit............................................. -- (2,825,000)
Proceeds from exercise of stock options................................ -- 270,177
------------------ ------------------
Net cash used in financing activities................................ (3,795,550) (6,276,975)
------------------ ------------------
Decrease in cash and cash equivalents..................................... (2,184,360) (3,957,088)
Cash and cash equivalents, beginning of period............................ 4,702,299 4,937,232
------------------ ------------------
Cash and cash equivalents, end of period.................................. $ 2,517,939 $ 980,144
------------------ ------------------
Supplemental Disclosure of NonCash Financing Activities:
Dividends payable...................................................... $ 534,538 $ 413,462
------------------ ------------------
Supplemental Disclosure of Cash Flow Information:
Cash paid for income taxes............................................. $ 1,444,020 $ 1,540,582
------------------ ------------------
Cash paid for interest................................................. $ 10,868 $ 441,404
------------------ ------------------
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements.
7
<PAGE>
BOSTON ACOUSTICS, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(1) BASIS OF PRESENTATION
The unaudited 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 include, in the opinion of
management, all adjustments (consisting only of normal recurring adjustments)
necessary for a fair presentation of interim period results. Certain
information and footnote 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. The Company believes, however, that its disclosures are adequate
to make the information presented not misleading. The results for the three
and six-month periods ended September 27, 1997 are not necessarily indicative
of results to be expected for the full fiscal year. These financial
statements should be read in conjunction with the Company's Annual Report
included in its Form 10-K for fiscal year ended March 29, 1997.
(2) INVENTORIES
Inventories are stated at the lower of cost (first-in, first-out) or
market and consist of the following:
<TABLE>
<CAPTION>
MARCH 29, 1997 SEPTEMBER 27,1997
-------------- -----------------
<S> <C> <C>
Raw materials and work-in process............................................. $ 5,889,305 $ 6,203,727
Finished goods................................................................ 3,651,452 7,148,680
-------------- -----------------
$ 9,540,757 $ 13,352,407
-------------- -----------------
-------------- -----------------
</TABLE>
Work-in-process and finished goods inventories consist of materials,
labor and manufacturing overhead.
(3) NET INCOME PER COMMON SHARE
Net income per common share for the three-month and six-month periods
ended September 27, 1997 are based upon the weighted average number of shares
of common stock outstanding and the dilutive effect of common stock
equivalents (stock options). Fully diluted earnings per share have not been
presented as the amounts would not differ significantly from primary earnings
per share. Net income per common share for the three-month and six-month
periods ended September 28, 1996 are based upon the weighted average number
of common shares outstanding. Common stock equivalents (stock options) were
not considered in the calculation of net income per share as their effect was
not significant.
On March 31, 1997, the Financial Accounting Standards Board issued SFAS
No. 128, Earnings per Share. SFAS No. 128 establishes standards for computing
and presenting earnings per share and applies to entities with publicly held
common stock or potential common stock. SFAS No. 128 is effective for annual
and interim periods ending after December 15, 1997, and early adoption is not
permitted. When adopted by the Company, SFAS No. 128 will require restatement
of prior year's earnings per share. The Company believes that the adoption of
SFAS No. 128 will not have a material effect on its financial statements.
8
<PAGE>
(4) REDEMPTION OF COMMON STOCK AND LINE OF CREDIT
On June 13, 1997, the Company repurchased an aggregate of 898,201 shares
of its common stock from the estates of its co-founder, Francis L. Reed, and
his wife, Dorothea T. Reed. The shares were repurchased at $26 5/8 per share
or a total of approximately $23,915,000. Funds to complete the repurchase
were obtained from an unsecured $25 million revolvoing line of credit
agreement with a bank. At September 27, 1997 the Company had drawn down
approximately $18.3 million on this line of credit.
(5) STOCK OPTIONS
The following is a summary of stock option activity for the six months
ended September 27, 1997:
<TABLE>
<CAPTION>
WEIGHTED
NUMBER OF PRICE AVERAGE
OPTIONS RANGE PRICE
----------- ----------------- -----------
<S> <C> <C> <C>
Outstanding at March 29, 1997........................................... 158,667 $ 17.00-$19.50 $ 18.55
Options granted......................................................... 100,000 $ 21.00 $ 21.00
Options exercised....................................................... (14,666) $ 17.00-$19.25 $ 18.57
Options canceled........................................................ (1,000) $ 19.50 $ 19.50
----------- ----------------- -----------
Outstanding at September 27, 1997....................................... 243,001 $ 17.00-$21.00 $ 19.51
----------- ----------------- -----------
Exercisable at September 27, 1997....................................... 40,417 $ 17.00-$21.00 $ 20.45
----------- ----------------- -----------
</TABLE>
9
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
The following table sets forth the results of operations for the
three-month and six-month periods ended September 28, 1996 and September 27,
1997 expressed as percentages of net sales.
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
-------------------------------- --------------------------------
<S> <C> <C> <C> <C>
SEPTEMBER 28, SEPTEMBER 27, SEPTEMBER 28, SEPTEMBER 27,
1996 1997 1996 1997
--------------- --------------- --------------- ---------------
Net sales............................................ 100.0% 100.0% 100.0% 100.0%
Cost of goods sold................................... 58.8 60.2 57.8 58.5
----- ----- ----- -----
Gross profit........................................ 41.2 39.8 42.2 41.5
----- ----- ----- -----
Selling and marketing
expenses........................................ 14.6 10.7 14.5 12.3
General & administrative
expenses........................................ 6.0 6.4 5.6 6.8
Engineering & development
expenses........................................ 6.3 3.2 6.5 5.1
----- ----- ----- -----
26.9 20.3 26.6 24.2
----- ----- ----- -----
Income from operations.............................. 14.3 19.5 15.6 17.3
Interest income (expense), net....................... 0.9 (1.8) 1.1 (1.0)
----- ----- ----- -----
Income before provision for
income taxes....................................... 15.2 17.7 16.7 16.3
Provision for income taxes........................... 5.3 6.8 5.9 6.1
----- ----- ----- -----
Net income.......................................... 9.9% 10.9% 10.8% 10.2%
----- ----- ----- -----
</TABLE>
Net sales increased 49 percent, from approximately $12,199,000 during the
second quarter of fiscal 1997 to approximately $18,136,000 during the second
quarter of fiscal 1998. For the six months ended September 27, 1997 net sales
increased approximately 31% from $23,251,000 to approximately $30,551,000.
The overall sales increase was primarily due OEM sales of our new
MicroMedia-TM- speaker system to Gateway 2000, Inc., and in addition includes
sales growth in our international business.
10
<PAGE>
The Company's gross margin for the three-month and six-month periods ended
September 27, 1997 decreased as a percentage of net sales due primarily to a
shift in the sales mix to loudspeaker models with slightly lower margins,
particularly OEM sales of our multimedia speaker systems.
Total operating expenses increased in absolute dollars but decreased as a
percentage of net sales during both the three-month and six-month periods
ended September 27, 1997. Selling and marketing expenses have increased in
absolute dollars primarily due to increased salaries and benefits relating to
additional personnel, as well as increased advertising and literature costs
associated with new product introductions of the Snell Acoustics subsidiary.
General and administrative expenses have increased in absolute dollars for
both the three-month and six-month periods due primarily to costs associated
with the operating results of the Snell subsidiary. Engineering and
development expenses for the three-month period decreased in absolute dollars
while remaining relatively stable for the six-month period ended September
27, 1997 primarily due to lower product development expenses compared to the
same periods a year ago.
Interest income of a year ago was replaced by net interest expense during the
three-month and six-month periods ended September 27, 1997 primarily due to
the utilization of working capital and borrowings under the Company's line of
credit in conjunction with the common stock repurchase in June 1997.
The Company's effective income tax rate increased from 35% for both the
three-month and six-month periods ended September 28, 1996 to 38% and 37.5%
for the three-month period and the six-month period ended September 27, 1997,
respectively. The increase is primarily due to the decrease in tax-free
instruments held by the Company which resulted in a reduction of tax benefits
derived by the Company's Massachusetts securities corporation.
Net income for the second quarter increased 64%, from approximately
$1,203,000 in fiscal 1997 to $1,976,000 in fiscal 1998 while earnings per
share increased from $.28 to $.58 per share. Net income for the six-month
period ended September 27, 1997 increased 23% from approximately $2,523,000
in fiscal 1997 to approximately $3,111,000 in fiscal 1998, while earnings per
share for the six-month period increased from $.58 to $.83 per share. The
increase in net income for the three and six-month periods ended September
27, 1997 is primarily the result of the increased sales growth, which was
offset by the decrease in interest income and the operating loss by the Snell
subsidiary included in the consolidated results of operations.
The Company has received initial orders pursuant to its contract with Gateway
2000, Inc., and the Company expects to receive, under the minimum purchase
terms of the contract, significant additional orders from Gateway. Since the
contract does not contain a schedule with which Gateway must comply in
placing orders, orders by Gateway may fluctuate significantly from quarter to
quarter over the term of the contract. Assuming Gateway places orders in the
quantity required under the contract by March 1998, a substantial portion of
the Company's revenues for the current fiscal year is expected to be derived
from its contract with Gateway.
LIQUIDITY AND CAPITAL RESOURCES
As of September 27, 1997 the Company's working capital was approximately
$20,279,000. The Company's cash and cash equivalents were approximately
$980,000, and short-term investments were approximately $676,000. The
Company's cash and cash equivalents at September 27, 1997 decreased by
approximately $3,957,000 from March 29, 1997 primarily as a result of the
repurchase of common stock during June 1997 and the increase in inventory and
accounts receivable relating to the Company's OEM business. The Company has
two lines of credit with two banking institutions totaling $26,500,000. At
September 27, 1997 the Company had borrowings totaling $18,300,000 under one
line of credit.
The Company believes that its resources are adequate to meet its
requirements for working capital and capital expenditures through the next
twelve months.
11
<PAGE>
Cautionary Statements
The Private Securities Litigation Reform Act of 1995 contains certain safe
harbors regarding forward-looking statements. From time to time, information
provided by the Company or statements made by its directors, officers, or
employees may contain "forward-looking" information which involve risk and
uncertainties. Any statements in this report that are not statements of
historical fact are forward-looking statements (including, but not limited
to, statements concerning the characteristics and growth of the Company's
market and customers, the Company's objectives and plans for future
operations, possible acquisitions, and the Company's expected liquidity and
capital resources). Such forward-looking statements are based on a number of
assumptions and involve a number of risks and uncertainties, and accordingly,
actual results could differ materially. Factors that may cause such
differences include, but are not limited to: the continued and future
acceptance of the Company's products, the rate of growth in the audio
industry; the presence of competitors with greater technical marketing and
financial resources; the Company's ability to promptly and effectively
respond to technological change to meet evolving consumer demands; capacity
and supply constraints or difficulties; and the Company's ability to
successfully integrate new operations. For a further discussion of these and
other significant factors to consider in connection with forward-looking
statements concerning the Company, reference is made to Exhibit 99 of the
Company's Annual Report on Form 10-K for fiscal year March 30, 1996.
12
<PAGE>
PART II: OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
At the Annual Meeting of the Shareholders of the Company held on August
12, 1997, shareholders acted affirmatively to elect nominees for directors
proposed by management. Each Director is to serve until the next Annual
Meeting of Shareholders and thereafter until his/her successor is elected
and qualified.
<TABLE>
<CAPTION>
VOTES VOTES
"FOR" "WITHHELD"
---------- ---------------
<S> <C> <C>
Andrew G. Kotsatos............................................................. 3,128,553 18,746
Fred E. Faulkner, Jr........................................................... 3,127,653 19,646
George J. Markos............................................................... 3,125,353 21,946
Lisa M. Mooney................................................................. 3,128,053 19,246
Gerald Walle................................................................... 3,125,253 22,046
</TABLE>
Shareholders also approved the 1997 Stock Plan. A total of 2,854,600
votes were cast in favor of the proposal, 133,398 votes were cast against,
and there were 27,341 abstentions.
Shareholders also voted to ratify the action of the Directors in
selecting Arthur Andersen LLP as auditors of the Company. A total of
3,125,885 votes were cast in favor of the proposal, 3,114 votes were cast
against, and there were 18,300 abstentions.
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a) Exhibits
Exhibit 27 -- Financial Data Schedule
b) Reports on Form 8-K
No reports on Form 8-K were filed during the quarter ended
September 27, 1997.
13
<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.
BOSTON ACOUSTICS, INC.
REGISTRANT
DATE: NOVEMBER 1, 1997 BY: S/ANDREW G. KOTSATOS
---------------------
ANDREW G. KOTSATOS
DIRECTOR, CHIEF EXECUTIVE OFFICER
AND TREASURER
DATE: NOVEMBER 1, 1997 BY: S/FRED E. FAULKNER, JR.
-----------------------
FRED E. FAULKNER, JR.
PRESIDENT AND CHIEF
OPERATING OFFICER
14
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from The
Company's Financial Statements in its quarterly report on Form 10-Q for the
quarterly period ended September 27, 1997 and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<CIK> 0000805268
<NAME> BOSTON ACOUSTICS, INC.
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-28-1998
<PERIOD-END> SEP-27-1997
<CASH> 980144
<SECURITIES> 675553
<RECEIVABLES> 12916770
<ALLOWANCES> 430000
<INVENTORY> 13352407
<CURRENT-ASSETS> 29078479
<PP&E> 18334092
<DEPRECIATION> 7445385
<TOTAL-ASSETS> 42007556
<CURRENT-LIABILITIES> 8799115
<BONDS> 15475000
0
0
<COMMON> 46226
<OTHER-SE> 46032182
<TOTAL-LIABILITY-AND-EQUITY> 42007556
<SALES> 30551245
<TOTAL-REVENUES> 30551245
<CGS> 17883510
<TOTAL-COSTS> 7392363
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 441404
<INCOME-PRETAX> 4976581
<INCOME-TAX> 1866000
<INCOME-CONTINUING> 3110581
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3110581
<EPS-PRIMARY> .83
<EPS-DILUTED> .83
</TABLE>
