UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For quarterly period ended June 30, 1997
------------------
Commission file number: 0-15975
LabOne, Inc.
----------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 48-0952323
---------- --------------
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
10310 West 84th Terrace
Lenexa, Kansas 66214
----------------------------- -------
(Address of principal executive offices) (Zip Code)
(913)-888-1770
--------------------------------
(Registrant's telephone number, including area code)
N/A
------------------------------------
(Former name, former address, former fiscal year,
if changed since last report)
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 outstanding of only class of Registrant's common stock,
$.01 par value, as of July 31, 1997 - 13,113,710 net of 1,886,290 shares
held as treasury stock.
Page 1 of 11
<TABLE> PART I. FINANCIAL INFORMATION
ITEM 1 - Financial Statements
LabOne, Inc. and Subsidiary
Consolidated Balance Sheets
<S> <C> <C>
June 30, December 31,
1997 1996
ASSETS --------- ---------
Current assets:
Cash and cash equivalents $ 3,917,504 3,613,454
Short-term investments 18,545,879 27,781,974
Accounts receivable-trade, net of allowance for doubtful
accounts of $862,367 in 1997 and $657,558 in 1996 13,315,374 9,598,707
Inventories, net of write-off allowance of $45,735 in 1997
and $0 in 1996 2,239,746 1,360,164
Prepaid expenses and other current assets 2,023,306 2,074,538
Deferred income taxes 682,206 682,206
---------- ----------
Total current assets 40,724,015 45,111,043
Investments with maturities of more than one year, at cost 503,217 504,292
Property, plant and equipment 54,609,395 52,642,497
Less accumulated depreciation 37,072,580 35,751,529
---------- ----------
Net property, plant and equipment 17,536,815 16,890,968
Other assets:
Intangible assets, net of accumulated amortization 5,739,952 2,098,987
Deferred income taxes - noncurrent 285,348 114,683
Deposits and other assets 21,063 23,202
---------- ----------
Total assets $64,810,410 64,743,175
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,420,554 2,971,376
Income taxes payable 16,907 -
Payable to Seafield Capital Corporation 27,775 26,217
Accrued payroll and benefits 3,692,879 2,802,566
Other accrued expenses 467,956 393,811
Other current liabilities 122,391 99,912
---------- ----------
Total liabilities 7,748,462 6,293,882
Stockholders' equity:
Preferred stock, $.01 par value per share;
1,000,000 shares authorized, none issued - -
Common stock, $.01 par value per share; 40,000,000 shares
authorized, 15,000,000 shares issued 150,000 150,000
Additional paid-in capital 13,642,023 13,546,121
Equity adjustment from foreign currency translation (582,345) (543,959)
Retained earnings 65,826,000 67,494,437
---------- ----------
79,035,678 80,646,599
Less treasury stock of 1,887,109 shares in
1997 and 1,915,835 shares in 1996 21,973,730 22,197,306
---------- ----------
Total stockholders' equity 57,061,948 58,449,293
---------- ----------
Total liabilities and stockholders' equity $64,810,410 64,743,175
========== ==========
See accompanying notes to consolidated financial statements and management's
discussion and analysis of financial condition and results of operations.
Page 2
</TABLE>
<TABLE>
LabOne, Inc. and Subsidiary
Consolidated Statements of Earnings
<S> <C> <C> <C> <C>
Three months ended June 30, Six Months Ended June 30,
1997 1996 1997 1996
---------- ---------- ---------- ----------
Sales $ 20,307,489 14,767,797 38,047,474 28,045,642
Cost of sales 10,636,249 7,883,730 20,086,354 15,361,051
---------- ---------- ---------- ----------
Gross profit 9,671,240 6,884,067 17,961,120 12,684,591
Selling, general and administrative expenses 7,099,483 5,864,755 13,530,389 11,650,094
---------- ---------- ---------- ----------
Earnings from operations 2,571,757 1,019,312 4,430,731 1,034,497
Other income 281,170 455,606 709,471 827,068
---------- ---------- ---------- ----------
Earnings before income taxes 2,852,927 1,474,918 5,140,202 1,861,565
Income tax expense 1,166,427 689,845 2,094,220 857,147
---------- ---------- ---------- ----------
Net earnings $ 1,686,500 785,073 3,045,982 1,004,418
========== ========== ========== ==========
Earnings per common share $ 0.13 0.06 $ 0.23 0.08
====== ====== ===== =====
Dividends per common share $ 0.18 0.18 $ 0.36 0.36
====== ====== ===== =====
Weighted average common shares outstanding 13,309,189 13,302,377 13,327,078 13,246,051
========== ========== ========== ==========
</TABLE>
See accompanying notes to consolidated financial statements and management's
discussion and analysis of financial condition and results of operations.
Page 3
LabOne, Inc. and Subsidiary
Consolidated Statement of Stockholders' Equity
Six Months Ended June 30, 1997
<TABLE>
<CAPTION>
Additional Foreign Total
Common paid-in currency Retained Treasury stockholders'
stock capital translation earnings stock equity
<S> <C> <C> <C> <C> <C> <C>
Balance at
December 31, 1996 $150,000 13,546,121 (543,959) 67,494,437 (22,197,306) 58,449,293
Net earnings 3,045,982 3,045,982
Cash dividends
($0.36 per share) (4,714,419) (4,714,419)
Stock options
exercised, net
(24,778 shares) 70,734 179,161 249,895
Directors' stock issued
(3,948 shares) 25,168 44,415 69,583
Equity adjustment
from foreign
currency
translation (38,386) (38,386)
-------- ---------- -------- ---------- ----------- ----------
Balance at
June 30, 1997 $150,000 13,642,023 (582,345) 65,826,000 (21,973,730) 57,061,948
======== ========== ======== ========== =========== ==========
</TABLE>
See accompanying notes to consolidated financial statements and management's
discussion and analysis of financial condition and results of operations.
Page 4
LabOne, Inc. and Subsidiary
Consolidated Statements of Cash Flows
Six months ended June 30,
1997 1996
--------- ---------
Cash provided by (used for) operations:
Net earnings $ 3,045,982 1,004,418
Adjustments to reconcile net earnings
to net cash provided by operations:
Depreciation and amortization 2,183,620 1,914,359
(Gain) loss on disposal of property
and equipment (111,570) 96,468
Directors' stock compensation 69,583 70,195
Provision for deferred taxes (174,559) (319,189)
Change in short term trading portfolio, net 14,332,855 (590,819)
Changes in:
Accounts receivable (3,716,667) (955,742)
Inventories (879,582) (382,107)
Prepaid expenses and other current assets 51,232 1,398,512
Accounts payable 449,178 356,178
Income taxes payable 16,907 (34,556)
Payable to Seafield Capital Corporation 1,558 (19,131)
Accrued payroll & benefits 890,313 363,946
Accrued expenses 74,145 (226,036)
Other current liabilities 22,479 19,470
---------- ----------
Net cash provided by operations 16,255,474 2,695,966
---------- ----------
Cash provided by (used for) investment transactions:
Purchases of investments held to maturity (10,190,477) (13,355,031)
Proceeds from maturities of investments held
to maturity 5,232,335 18,594,571
Property, plant and equipment, net (2,383,890) (787,628)
Acquisition of intangible assets, net (4,128,274) -
Other 2,139 10,845
---------- ----------
Net cash provided by (used for)
investment transactions (11,468,167) 4,462,757
---------- ----------
Cash provided by (used for) financing transactions:
Issuance of treasury stock, net of proceeds
from the exercise of stock options 249,895 67,613
Cash dividends (4,714,419) (4,704,106)
---------- ----------
Net cash used for financing transactions (4,464,524) (4,636,493)
---------- ----------
Effect of foreign currency translation (18,733) (292)
---------- ----------
Net increase in cash and cash equivalents 304,050 2,521,938
Cash and cash equivalents - beginning of period 3,613,454 2,993,128
---------- ----------
Cash and cash equivalents - end of period $ 3,917,504 5,515,066
========== ==========
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Income Taxes $ 2,409,334 913,605
========== ==========
See accompanying notes to consolidated financial statements and management's
discussion and analysis of financial condition and results of operations.
Page 5
LabOne, Inc. and Subsidiary
Notes to Consolidated Financial Statements
June 30, 1997 and 1996
The accompanying consolidated financial statements include the accounts
of LabOne, Inc. and its wholly-owned subsidiary Lab One Canada Inc. (a
Canadian corporation). All significant intercompany transactions have
been eliminated in consolidation.
The financial information furnished herein is unaudited; however, in the
opinion of management, it reflects all adjustments which are necessary to
fairly state the Company's financial position at June 30, 1997, and
December 31, 1996, and the results of its operations and cash flows for
the periods ended June 30, 1997 and 1996. The financial statements have
been prepared in conformity with generally accepted accounting principles
appropriate in the circumstances, and included in the financial statements
are certain amounts based on management's estimates and judgments.
The financial information herein is not necessarily representative of a
full year's operations because levels of sales, capital additions and
other factors fluctuate throughout the year. These same considerations
apply to all year-to-year comparisons. See the Company's Annual Report
on Form 10-K for the year ended December 31, 1996, for additional
information not required by this report Form 10-Q.
The weighted average shares includes the common stock equivalents of
stock options.
In February 1997, the Financial Accounting Standards Board issued Statement
No.128, "Earnings Per Share" which revises the calculation and presentation
provisions of Accounting Principles Board Opinion 15 and related
interpretations. Statement No. 128 is effective for the Company's fiscal year
ending December 31, 1997. Retroactive application will be required. The
Company believes the adoption of Statement No. 128 will not have a significant
effect on its reported earnings per share. In February 1997, the Financial
Accounting Standards Board issued Statement No. 129, "The Disclosure of
Information About Capital Structure" effective for the Company's fiscal year
ending December 31, 1997. The Company believes the adoption of Statement No.
129 will not have any significant impact.
Effective January 30, 1997, LabOne acquired certain assets, inventory and
customer lists, of GIB Laboratories, Inc., a subsidiary of Prudential
Insurance Company of America, for $4.6 million. Concurrently, Prudential's
Individual Insurance Group made a multi-year commitment to use LabOne as its
exclusive provider of risk assessment testing services. The acquisition was
accounted for using the purchase method. Accordingly, the purchase price was
allocated to assets acquired based on their fair values. The total cost in
excess of tangible net assets acquired was $4.1 million and is being
amortized on a straight-line basis over 15 years.
Page 6
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
<TABLE>
RESULTS OF OPERATIONS
- ---------------------
<S> <C> <C> <C> <C> <C> <C>
Selected financial data:
Three Months Ended June 30, % Increase Six Months Ended June 30, % Increase
1997 1996 1997 1996
----------- ----------- -------- ----------- ----------- --------
Sales $ 20,307,489 14,767,797 38% 38,047,474 28,045,642 36%
Net earnings 1,686,500 785,073 115% 3,045,982 1,004,418 203%
Earnings per common share $0.13 0.06 $0.23 0.08
Cash dividends per common share $0.18 0.18 $0.36 0.36
</TABLE>
The Company provides high-quality laboratory services to insurance companies,
physicians and employers.
LabOne provides risk-appraisal laboratory services to the insurance industry.
The tests performed by the Company are specifically designed to assist an
insurance company in objectively evaluating the mortality and morbidity risks
posed by policy applicants. The majority of the testing is performed on
specimens of individual life insurance policy applicants. The Company also
provides testing services on specimens of individuals applying for individual
and group medical and disability policies.
LabOne's clinical testing services are provided to the healthcare industry to
aid in the diagnosis and treatment of patients. LabOne operates only one
highly automated and centralized laboratory, which the Company believes has
significant economic advantages over other conventional laboratory
competitors. LabOne markets its clinical testing services to the payers of
healthcare--insurance companies and self-insured groups. The Company does
this through Lab Card(TM), a Laboratory Benefits Management (LBM) program.
The Lab Card Program provides laboratory testing at reduced rates as compared
to traditional laboratories. It uses a unique benefit design that shares the
cost savings with the patient, creating an incentive for the patient to help
direct laboratory work to LabOne. Under the Program, the patient incurs no
out-of-pocket expense when the Lab Card is used, and the insurance company or
self-insured group receives substantial savings on its laboratory charges.
The Company's Lab Card program covered approximately 1.3 million lives as of
June 30, 1997. Additionally, LabOne had a signed backlog of approximately
450,000 additional lives to be covered by the program.
LabOne is certified by the Substance Abuse and Mental Health Services
Administration (SAMHSA) to perform substance abuse testing services for
federally regulated employers and is currently marketing these services
throughout the country to both regulated and nonregulated employers. The
Company's rapid turnaround times and multiple testing options help clients
reduce downtime for affected employees and meet mandated drug screening
guidelines.
Effective January 30, 1997, LabOne acquired certain assets, including customer
lists, of GIB Laboratories, Inc., a subsidiary of Prudential Insurance Company
of America. Concurrently, Prudential's Individual Insurance Group agreed to
use LabOne as its exclusive provider of risk assessment testing services. At
the time of the purchase, GIB served approximately 5% of the insurance
laboratory testing market.
Page 7
SECOND QUARTER ANALYSIS
Net sales increased 38% to $20.3 million in the second quarter 1997 from $14.8
million in the second quarter 1996 due to increases in all business segments.
Insurance segment revenue increased to $15.9 million during the second quarter
1997 as compared to $12.8 million in the same quarter last year. The increase
was due to an increase in market share and an increase in oral fluid testing
on applicants applying for smaller face-amount policies. The total number of
insurance applicants tested in the second quarter 1997 increased by 20% as
compared to the same quarter last year. Average revenue per applicant
increased 1% during the same periods due to an increase in the number of tests
requested per specimen. Insurance kit and container revenue increased, due
primarily to an increase in the number of blood and oral fluid kits sold.
Clinical (diagnostic) laboratory revenue increased 134% from $0.9 million in
the second quarter 1996 to $2.1 million in 1997 due to an 88% increase in
testing volumes and a 25% increase in the average revenue per patient.
Substance abuse testing (SAT) revenue increased 123% from $1.0 million in the
second quarter 1996 to $2.3 million in 1997 primarily due to increased testing
volumes.
Cost of sales increased $2.8 million in the second quarter 1997 as compared to
the prior year, due primarily to increases in supplies and payroll. Insurance
kit supplies increased due to the higher volume of kits sold and the increase
in cost of oral fluid kits for HIV testing. Payroll and lab supplies
increased due to the increased specimen volumes tested in each segment.
Clinical cost of sales expenses were $2.0 million as compared to $1.6 million
in the second quarter 1996. SAT cost of sales expenses were $1.7 million as
compared to $0.8 million in the second quarter 1996.
As a result of the above factors, gross profit for the quarter increased $2.8
million (40%) from $6.9 million in 1996 to $9.7 million in 1997. Clinical
gross profit increased to $39,000 in the second quarter 1997 from a loss of
$0.7 million in the second quarter 1996. SAT gross profit increased to $0.6
million in the second quarter 1997 from $0.2 million last year.
Selling, general and administrative expenses increased $1.2 million (21%) in
the second quarter 1997 as compared to the prior year, due primarily to
increases in payroll expenses, travel and printing expenses. These were
partially offset by a decrease in consulting and severance expenses. Clinical
expenses, including allocated overhead, were $1.9 million as compared to $1.2
million in 1996. SAT expenditures, including allocations, were $0.7 million
as compared to $0.5 million last year. The overhead allocation to the
clinical and SAT testing segments for the second quarter 1997 was $0.8 million
as compared to an allocation of $0.5 million in 1996.
Operating income increased from $1.0 million in the second quarter 1996 to
$2.6 million in 1997. The insurance segment increased $1.5 million. The
clinical segment maintained an operating loss of $1.9 million. The SAT
segment improved $0.1 million from an operating loss of $0.3 million in the
second quarter 1996 to a loss of $0.2 million in 1997.
Investment income decreased $0.2 million due primarily to less funds available
for investment.
The effective income tax rate declined from 47% in 1996 to 41% in 1997 due to
exit taxes on the intercompany dividend from the Canadian subsidiary in 1996.
The combined effect of the above factors resulted in net earnings of $1.7
million or $0.13 per share in the second quarter 1997 as compared to $0.8
million, or $0.06 per share, in the same period last year.
Page 8
YEAR-TO-DATE ANALYSIS
Revenue in the six month period ended June 30, 1997 was $38.0 million as
compared to $28.0 million in the same period last year. The increase of $10.0
million is due to increases in insurance laboratory revenue of $3.8 million,
SAT revenue of $2.1 million, clinical laboratory revenue of $2.0 million and
kit revenue of $2.0 million.
The total number of insurance applicants tested in the six month period
increased by 21% as compared to last year, while average revenue per
applicant declined 1%. Kit and container revenue increased $2.0 million due
primarily to an increase in the number of full blood and oral fluid kits sold
and the increased price of oral fluid kits for HIV testing.
SAT revenue increased from $1.9 million in 1996 to $4.1 million in 1997 due to
a 121% increase in testing volumes. Clinical laboratory revenue increased
from $1.7 million during the first six months of 1996 to $3.7 million for the
same period in 1997 due to increased testing volumes and higher revenue per
patient.
Cost of sales increased $4.7 million year to date as compared to the prior
year. This increase is due primarily to increases in payroll, laboratory
supplies and kit expenses. Payroll increased 21%, and lab supplies increased
32% due to the larger volume of all specimen types processed. Insurance kit
expense increased due to the higher volume of kits sold and the increase in
cost of oral fluid kits for HIV testing. Clinical cost of sales expenses were
$4.0 million as compared to $3.1 million during the first six months of 1996.
SAT cost of sales expenses were $3.1 million as compared to $1.5 million
during 1996.
As a result of the above factors, gross profit for the first six months
increased from $12.7 million in 1996 to $18.0 million in 1997. Clinical gross
profit improved from a loss of $1.4 million in 1996 to a loss of $0.3 million
in 1997. SAT gross profit increased to $0.9 million in the first six months
of 1997 from $0.4 million last year.
Selling, general and administrative expenses increased $1.9 million (16%) in
the six month period ended June 30, 1997 as compared to the prior year due
primarily to increases in payroll expenses, travel and printing expenses.
Payroll expense increased due to bonus accruals and a 13% increase in
headcount. Clinical expenditures were $3.7 million as compared to
$2.5 million in 1996. SAT expenses increased from $1.0 million in 1996 to
$1.5 million in 1997. The overhead allocation to the clinical and SAT
segments for the period was $1.5 million as compared to an allocation of $0.9
million in 1996.
Operating income increased from $1.0 million in the first six months of 1996
to $4.4 million in 1997, primarily due to an increase in the insurance segment
operating income of $3.5 million. The clinical segment had an operating loss
of $4.0 million for the six month period ended June 30, 1997 due to increased
corporate overhead allocations offsetting operating improvements over 1996.
The SAT segment improved from an operating loss of $0.6 million in 1996 to a
loss of $0.5 million in 1997.
Investment income decreased $0.3 million primarily due to less funds available
for investment. Other non operating income increased $0.2 million.
The effective income tax rate declined from 46% in 1996 to 41% in 1997 due to
exit taxes on the Canadian dividend in 1996.
Page 9
The combined effect of the above factors resulted in net earnings of $3.0
million or $0.23 per share in the six month period ended June 30, 1997 as
compared to $1.0 million or $0.08 per share in the same period last year.
FINANCIAL POSITION, LIQUIDITY AND CAPITAL RESOURCES
LabOne's working capital position decreased by $5.8 million to $33.0 million
at June 30, 1997, from $38.8 million at December 31, 1996. This decrease is
primarily due to dividends paid, and the purchase of GIB laboratory assets and
customer lists. Net trade accounts receivable increased 39% over the balance
at December 31, 1996, primarily due to increasing sales in all three divisions
in 1997.
Net additions to property, plant and equipment and intangibles were $6.5
million in the six month period as compared to $0.8 million in 1996. The
increase is primarily due to the purchase of the assets and customer lists of
GIB Laboratories. There were 3,948 shares of treasury stock issued for
directors' stock compensation. The total number of shares of stock held in
treasury at June 30, 1997, was approximately 1.9 million shares at a total
cost of $22.0 million, or $11.64 per share.
In May 1997, LabOne's Board of Directors declared the regular quarterly
dividend of $0.18 per common share. This dividend was paid on June 3, 1997,
to stockholders of record as of May 27, 1997, and totaled approximately $2.4
million. The board will review the dividend payment policy on a periodic
basis. There are currently no restrictions that would limit the Company's
ability to make future dividend payments.
The Company had no borrowings in the second quarter 1997. The Company expects
to fund operations and future dividend payments from a combination of cash
reserves and cash flow from operations. In July 1997, LabOne signed an
agreement to purchase 51.61 acres of vacant land in Lenexa, Kansas. This
agreement for $2.2 million is contingent upon LabOne's approval of certain
economic incentives from the City of Lenexa.
LabOne is planning to construct a 270,000 square foot facility to house all of
its corporate, laboratory and warehouse operations. This facility is expected
to cost approximately $17 million and may be financed with an industrial
revenue bond for $25 million. The remaining funds would be used to purchase
additional laboratory, computer and general operations equipment. At June 30,
1997, LabOne had total cash and investments of $23.0 million as compared to
$31.9 million at December 31, 1996.
PART II. OTHER INFORMATION
Item 4. - Submission of Matters to a Vote of Security Holders.
(a) The annual stockholders' meeting was held on May 8, 1997.
(c) Brief description of each matter voted:
(1) Election of directors. For Messrs. Brewer, Hespe, Jacobs, Patterson,
Rifkind, Sadler, Seward, Thompson, Walker and Wright, there were 12,430,696
shares voted in favor thereof and 18,681 shares withheld. For Mr. William D.
Grant there were 12,430,296 shares voted in favor thereof and 19,081 shares
withheld. For Mr. W. Thomas Grant II, there were 12,430,496 shares voted in
favor thereof and 18,881 shares withheld. For Mr. Schweiker, there were
12,430,096 shares voted in favor thereof and 19,281 shares withheld. There
were 0 abstentions and 0 broker nonvotes for all directors.
Page 10
(2) Election to ratify the appointment of KPMG Peat Marwick LLP as
independent certified public accountants of the corporation and its subsidiary
for the present fiscal year. Of the 12,466,697 shares voted, 12,449,377 were
voted in favor thereof and 9,340 were opposed. There were 7,980 abstentions
and 0 broker nonvotes.
Item 5. - Exhibits and Reports on Form 8-K
(a) Exhibits
27. Financial Data Schedule - as filed electronically by the
Registrant in conjunction with this second quarter 1997 Form 10-Q.
(b) Reports on Form 8-K
A Form 8-K current report dated July 1, 1997, was filed with the
Commission reporting under Other Events that discussions between LabOne and
Seafield Capital Corporation, which owns 82% of LabOne, regarding a possible
merger between the two companies were terminated.
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.
LabOne, Inc.
Date: August 12, 1997 By /s/ Kurt E. Gruenbacher
Kurt E. Gruenbacher, V.P. Finance and CAO
Date: August 12, 1997 By /s/ Robert D. Thompson
Robert D. Thompson, Executive V.P., COO,
CFO and Treasurer
Page 11
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
second quarter 1997 Form 10-Q for LabOne, Inc. and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000816151
<NAME> LABONE, INC.
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 3,917,504
<SECURITIES> 18,545,879
<RECEIVABLES> 14,177,741
<ALLOWANCES> 862,367
<INVENTORY> 2,239,746
<CURRENT-ASSETS> 40,724,015
<PP&E> 54,609,395
<DEPRECIATION> 37,072,580
<TOTAL-ASSETS> 64,810,410
<CURRENT-LIABILITIES> 7,748,462
<BONDS> 0
0
0
<COMMON> 150,000
<OTHER-SE> 56,911,948
<TOTAL-LIABILITY-AND-EQUITY> 64,810,410
<SALES> 0
<TOTAL-REVENUES> 38,047,474
<CGS> 0
<TOTAL-COSTS> 20,086,354
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 5,140,202
<INCOME-TAX> 2,094,220
<INCOME-CONTINUING> 3,045,982
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,045,982
<EPS-PRIMARY> 0.23
<EPS-DILUTED> 0.23
</TABLE>
