U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
--
X QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
--
EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED September 30, 1995
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--
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
--
EXCHANGE ACT 1934 FOR THE TRANSITION PERIOD FROM
TO ------------
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Commission file number 0-5887
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RTI INC.
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(Exact name of small business issuer as specified in its charter)
NEW YORK 11-2163152
------------------------ ------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
108 Lake Denmark Road, Rockaway, New Jersey 07866
-------------------------------------------------
(Address of principal executive offices) (Zip Code)
(201) 625-8400
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(Issuer's telephone number, including area code)
Check whether the issuer (1) filed all reports required to be
filed by Section l3 or l5(d) of the Exchange Act during the past 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
---- ----
State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date.
November 10, 1995 - 1,076,919 shares of common stock
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Transitional Small Business Disclosure Form Yes No x
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Exhibit Index on sequentially numbered page 15
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Total number of pages 17
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<PAGE>
Part I. Financial Information
Item I. Financial Statements
RTI Inc. and Subsidiaries
Consolidated Balance Sheets
September 30, December 31,
1995 1994
Assets (unaudited)
---------------------------------------- ------------ -----------
Current:
Cash and cash equivalents $ 95,652 $ 172,198
Accounts receivable, net of allowance
for doubtful accounts of $24,000
and $10,000 539,366 541,742
Prepaid expenses and other 36,860 103,975
Restricted deposits 15,771 39,028
----------- -----------
Total current assets 687,649 856,943
Property, plant, equipment and Cobalt 60,
net of accumulated depreciation and
amortization 6,863,277 6,865,198
Certificates of financial assurance -
restricted 150,000 150,000
Deferred financing costs 42,765 48,224
----------- -----------
Total assets $ 7,743,691 $ 7,920,365
=========== ===========
See accompanying notes to consolidated financial statements.
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<PAGE>
RTI Inc. and Subsidiaries
Consolidated Balance Sheets
September 30, December 31,
1995 1994
Liabilities and Stockholders' Equity (unaudited)
---------------------------------------- ------------ -----------
Current:
Current portion of long-term debt
(Note 6 ) $ 792,269 $ 607,600
Accounts payable 100,123 235,172
Accrued expenses (Note 5) 493,400 523,879
----------- -----------
Total current liabilities 1,385,792 1,366,651
Long-term debt, net of current portion
and discount of $49,500 and $66,000
(Note 6) 2,159,529 2,021,713
Other liabilities (Note 7) 839,948 836,510
----------- -----------
Total liabilities 4,385,269 4,224,874
Commitments and contingencies
(Notes 2,3,4,5,6, and 7)
Stockholders' equity (Note 9):
Preferred stock, $.05 par value -
shares authorized 2,000,000;
no shares issued and outstanding -- --
Common stock, $.08 par value -
shares authorized 15,000,000;
issued and outstanding, 1,076,919 86,154 86,175
Additional paid-in capital 16,013,900 16,014,622
Deficit (12,741,632) (12,405,306)
----------- -----------
Total stockholders' equity 3,358,422 3,695,491
----------- -----------
Total liabilities and
stockholders' equity $ 7,743,691 $ 7,920,365
=========== ===========
See accompanying notes to consolidated financial statements.
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<PAGE>
RTI Inc. and Subsidiaries
Consolidated Statements of Operations
(unaudited)
Three Months Ended September 30,
1995 1994
-------- --------
Net sales $1,069,217 $1,040,639
Cost of sales 707,300 575,117
--------- ---------
Gross profit 361,917 465,522
Operating expenses:
Selling, general and
administrative expenses 388,118 458,596
--------- ---------
Income (loss) from operations (26,201) 6,926
Other income (expense):
Investment income, net 2,353 2,081
Expenses of Salem facility,
including interest expense of
$17,161 (Notes 2 and 6) -- (50,645)
Expenses of Rockaway Industrial
Park - Parcel I, including
interest expense of $5,500
in 1995 and 1994 (Notes 3 and 4) (115,391) (28,424)
Other interest expense (Note 8) (67,213) (12,321)
Other income (Note 10) 146,919 --
--------- ---------
Loss before taxes on income (59,533) (82,383)
Taxes on income -- (1,640)
--------- ---------
Net loss $ (59,533) $ (80,743)
========= =========
Net loss per share $ (.06) $ (.08)
========= =========
Weighted average number of common
shares outstanding (Note 9) 1,076,919 1,077,190
========= =========
See accompanying notes to consolidated financial statements.
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<PAGE>
RTI Inc. and Subsidiaries
Consolidated Statements of Operations
(unaudited)
Nine Months Ended September 30,
1995 1994
-------- --------
Net sales $3,226,007 $3,366,905
Cost of sales 2,134,565 1,711,035
---------- ----------
Gross profit 1,091,442 1,655,870
Operating expenses:
Selling, general and
administrative expenses 1,214,466 1,283,143
---------- ----------
Income (loss) from operations (123,024) 372,727
Other income (expense):
Investment income, net 8,947 7,449
Expenses of Salem facility,
including interest expense of
$54,242 (Notes 2 and 6) -- (156,138)
Expenses of Rockaway Industrial
Park - Parcel I, including
interest expense of $16,500
in 1995 and 1994 (Notes 3 and 4) (172,268) (90,901)
Other interest expense (Note 8) (196,900) (41,465)
Other income (Note 10) 146,919 --
---------- ----------
Income (loss) before taxes on income (336,326) 91,672
Taxes on income -- 1,390
---------- ----------
Net income (loss) $ (336,326) $ 90,282
========== ==========
Net income (loss) per share $ (.31) $ .08
========== ==========
Weighted average number of common
shares outstanding (Note 9) 1,077,100 1,077,186
========== ==========
See accompanying notes to consolidated financial statements.
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<PAGE>
RTI Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(unaudited)
( Note 11 )
Nine Months Ended September 30,
1995 1994
--------- ---------
Cash flows from operating activities:
Net income (loss) $(336,326) $ 90,282
--------- ---------
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation and amortization 647,862 502,585
Provision for (recovery of) losses on
accounts receivable 14,500 (2,599)
Discounting of note payable 16,506 16,506
(Increase) decrease in:
Accounts receivable (12,124) 101,643
Restricted deposits 23,257 78,844
Prepaid expenses and other 72,574 (41,796)
Certificates of financial assurance -- (75,000)
Increase (decrease) in:
Accounts payable (135,049) (20,456)
Accrued expenses (30,479) (272,911)
--------- ---------
Total adjustments 597,047 286,816
--------- ---------
Net cash provided by operating activities 260,721 377,098
--------- ---------
Cash flows from investing activities:
Purchases of fixed assets (48,556) (216,521)
Decrease in short-term investments -- 275,801
--------- ---------
Net cash provided by (used in)
investing activities (48,556) 59,280
--------- ---------
Cash flows from financing activities:
Payments on long-term debt (252,968) (297,965)
Payments on other liabilities (35,000) (151,417)
Payments for fractional shares
of common stock (Note 9(a)) (743) --
Proceeds from exercise of stock options -- 219
--------- ---------
Net cash (used in) financing
activities (288,711) (449,163)
--------- ---------
Net decrease in cash and cash equivalents (76,546) (12,785)
Cash and cash equivalents, beginning of year 172,198 379,421
Cash and cash equivalents, end of period $ 95,652 $ 366,636
========= =========
See accompanying notes to consolidated financial statements.
-6-
<PAGE>
RTI Inc. and Subsidiaries
Notes to Consolidated Financial Statements
(Information as of September 30, 1995 and 1994, and for
the three and nine months then ended is unaudited)
1. Unaudited Information
In the opinion of management of RTI Inc. (with its Subsidiaries, the
"Company"), the accompanying unaudited consolidated financial
statements include all adjustments necessary to present fairly, in
all material respects, the Company's financial position as of
September 30, 1995, its results of operations for the three months
and nine months ended September 30, 1995 and 1994, and its cash flows
for the nine months ended September 30, 1995 and 1994. Results of
operations for the nine month period ended September 30, 1995
presented are not necessarily indicative of the results to be
expected for the year ending December 31, 1995. Information included
in the consolidated balance sheet as of December 31, 1994 has been
derived from the Company's audited consolidated financial statements
in its Annual Report on Form 10-KSB for the year ended December 31,
1994, to which reference is made. Certain information included in
audited financial statements and related notes prepared in accordance
with generally accepted accounting principles may have been condensed
or omitted.
2. Salem Facility
In 1986, the Company commenced irradiation processing operations at a
new facility in Salem, New Jersey. This facility is located on land
utilized pursuant to a long-term lease with the City of Salem
Municipal Port Authority. The lease has been accounted for as a
capitalized lease. The lease initially expires in 2004 and permits
an extension. During 1988, the Company suspended operations at this
facility. In October 1994, the Company reopened this facility and
irradiation services are ongoing.
3. Rockaway Industrial Park
The Company owns a 248 acre parcel of land ("Parcel I") in Rockaway,
New Jersey, that is contiguous to the 15 acre operating parcel that
is the site of one of its irradiation processing facilities ("Parcel
II" and, with Parcel I, the "Rockaway Industrial Park"). Since 1985,
the Company has been seeking a buyer for Parcel I. However, the
Company's ability to recover its net investment in Parcel I is
impaired by liabilities accruing from outstanding property taxes on
222 acres of Parcel I for the years 1993, 1994, and 1995, and until
the completion of an environmental cleanup and remediation program
(Note 4).
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<PAGE>
RTI Inc. and Subsidiaries
Notes to Consolidated Financial Statements
(Information as of September 30, 1995 and 1994, and for
the three and nine months then ended is unaudited)
4. Environmental Investigation, and Remediation
As a result of engineering tests that commenced in 1981, the New
Jersey Department of Environmental Protection (the "DEP") issued a
directive in 1986 ordering a remedial investigation and feasibility
study (the "Study") designed to determine the nature and extent of
contamination on the Rockaway Industrial Park property. The Company
agreed to pay the costs of the Study and entered into an Adminis-
trative Consent Order with the DEP. In 1989, the DEP issued a Second
Directive seeking payment for approximately $1,200,000 to pay for an
additional environmental study and DEP oversight costs ("Phase II").
In 1993, the Company entered into an Administrative Consent Order
("ACO II") with the DEP. Cost reimbursement to the DEP under the ACO
II includes applicable DEP expenditures beginning July 1, 1982 and
future DEP oversight. At September 30, 1995, the balance due the DEP
under the ACO II amounted to $687,803, which resulted from billed DEP
expenditures for the period July 1, 1982 to January 20, 1995. The ACO
II, as amended in 1994, requires the outstanding balance of the
Study, Phase II, and DEP oversight costs, to be paid to the DEP in
installments of $35,000 including principal and interest, as billed
by the DEP according to "quarterly" terms. As a result of ongoing DEP
involvement, there can be no assurances that the DEP oversight,
cleanup, and remediation accruals will represent the Company's
ultimate liability.
In addition, the Company has been named a respondent in an environ-
mental proceeding relating to a New Jersey disposal site to which the
Company is alleged to have shipped materials in 1978. The Company has
disclaimed liability and has made no provision for such potential
liability in its financial statements.
5. Accrued Expenses
Accrued expenses consist of the following at September 30, 1995:
Property taxes $ 149,952
Interest expense 29,137
Professional fees and other 117,203
Payroll and related costs 41,337
Environmental cleanup and DEP oversight 155,771
---------
Total $ 493,400
=========
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<PAGE>
RTI Inc. and Subsidiaries
Notes to Consolidated Financial Statements
(Information as of September 30, 1995 and 1994, and for
the three and nine months then ended is unaudited)
6. Long-term debt
Long-term debt consists of the following at September 30, 1995:
City of Salem Municipal Port Authority,
Port Development Revenue Bonds $1,250,000
Notes payable 287,522
Secured Cobalt 60 financing and
capital lease agreements 1,414,276
----------
Total 2,951,798
Less: Current portion 792,269
----------
Total long-term debt $2,159,529
==========
7. Other liabilities
Other liabilities of $839,948 at September 30, 1995 consist of DEP
oversight costs and reserves for site remediation (Note 4).
8. Other Interest Expense
Other interest expense is primarily related to long-term debt and
includes amortization of deferred financing costs.
9. Stockholder's Equity
(a) Common and Preferred Stock Authorized, Issued and Outstanding
Effective May 25, 1995 the Company's Certificate of Incorporation was
amended to effect a one for eight reverse stock split of the common
stock and authorize 2,000,000 shares of preferred stock. No preferred
stock was issued as of September 30, 1995 and the outstanding common
stock at September 30, 1995 was an estimate (since fractional shares
were not issuable) based on the actual number of shares converted one
for eight and the remaining shares to be converted.
(b) Weighted Average Number of Common Shares Outstanding
The computation of the weighted average number of common shares
outstanding for the three month and nine month periods ended September
30, 1995 and 1994 considered the one for eight reverse stock split,
and excluded outstanding options, which were considered antidilutive.
No shares were issued during the nine month period ended September 30,
1995.
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<PAGE>
RTI Inc. and Subsidiaries
Notes to Consolidated Financial Statements
(Information as of September 30, 1995 and 1994, and for
the three and nine months then ended is unaudited)
(c) Stock Options
The Company's 1987 stock option plan (the "Plan") authorizes the
issuance of options for common stock until November 3, 1997. The
options granted may be either incentive stock options which are
exercisable one year or more from the date of grant or nonqualified
stock options which may be exercisable immediately. Details of stock
option transactions for the nine month period ended September 30, 1995
under the 1987 Plan, which reflect the one for eight reverse stock
split effective May 1995 are as follows:
Price per Exercisable
Options Share Options
--------------------------------------
Outstanding at
December 31, 1994 4,623 $6.50 - $7.76 3,205
Granted 1,250 4.00 --
Exercised --
Canceled (937)
----------
Outstanding at
September 30, 1995 4,936 $4.00 - $6.50 2,581
==========
10. Other Income
Other income of $146,919 in 1995 is primarily the net proceeds of
$144,830 from the final settlement of all litigation with Martin A.
Welt, a former officer and director.
11. Statement of Cash Flows
Supplemental disclosures of cash flow information are as follows:
Nine months ended September 30,
1995 1994
----------- -----------
Interest paid $192,095 $ 75,217
Income taxes paid 4,985 3,949
In April 1995, the Company financed a purchase of Cobalt 60 amounting
to $597,000.
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<PAGE>
Item 2.
Management's Discussion and Analysis or Plan of Operation
Reference is made to Item 6 - "Management's Discussion and Analysis or
Plan of Operation" contained in the Company's Annual Report on Form
l0-KSB for its fiscal year ended December 31, 1994 for a discussion
of the Company's financial condition as of December 31, 1994,
including a discussion of the Company's anticipated liquidity and
working capital requirements during 1995.
Comparison of Operations for the Three Month Periods Ended September
30, 1995 and 1994
Net sales for the three months ended September 30, 1995 were
$1,069,217, an increase of 3% from net sales of $1,040,639 for the
same period in 1994. Increased net sales in 1995 were a result of
increased sales volume from new and existing customers partially
offset by lower processing fees resulting from competitive pressures.
Cost of sales in the third quarter of 1995 increased to $707,300 from
$575,117 in the comparable period of 1994. The increase was primarily
due to the operations of the Salem facility which was not in operation
in the third quarter of 1994. As a result, the gross profit percentage
for the third quarter of 1995 decreased to 34% from 45% in the 1994
period.
Selling, general and administrative ("SG&A") expenses of $388,118 for
the third quarter of 1995 decreased 15% from $458,596 for the same
period in 1994. Certain SG&A expenses, such as salaries and profes-
sional fees, were significantly reduced in 1995 compared to the same
expenses in 1994. The SG&A decrease in 1995 was partially offset by
expenses of the Salem facility which was not in operation during the
1994 period.
As a result of the foregoing, the loss from operations for the third
quarter of 1995 was $26,201 as compared to income of $6,926 in the
1994 quarter.
Investment income was $2,353 in the third quarter of 1995 as compared
to $2,081 for the same period in 1994, a result of increased interest
rates.
Expenses of the Salem facility in the third quarter of 1995 were
included in cost of sales, SG&A, and other interest expense. Salem
facility expenses of $50,645 in the third quarter of 1994 reflected
the cost of the idle facility.
Expenses of Rockaway Industrial Park - Parcel I increased to $115,391
in the third quarter of 1995 as compared to $28,424 in 1994. The
increase was due to additional DEP oversight costs billed for DEP
fiscal years 1993, 1994, and 1995 related to the ongoing environmental
remediation (Note 4).
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<PAGE>
Other interest expense of $67,213 in the third quarter of 1995
increased primarily due to the higher interest rate of the long-term
debt (which was converted in December 1994 to a fixed rate of 10% from
a lower floating rate) related to the Salem facility, interest related
to financing additional Cobalt 60 for the Salem facility, and a short-
term loan incurred in the fourth quarter of 1994. Interest expense in
1994 of $12,321 related to Cobalt 60 financing and lease agreements.
Other income of $146,919 in 1995 was primarily the net proceeds of a
litigation settlement of $144,830 (Note 10).
As a result of the foregoing, the Company reported a net loss before
taxes of $59,533 for the third quarter of 1995, as compared to a net
loss before taxes of $82,383 in 1994.
Income tax expense reduction in the third quarter of 1994 was $1,640
which reduced the year to date estimate as of June 30, 1994. The
estimate of income tax expense is the net of regular income tax offset
by the available net operating loss carryforwards for Federal income
taxes and State income taxes.
For the quarter ended September 30, 1995, the Company reported a net
loss of $59,533 or $.06 per share, as compared to net loss of $80,743
or $.08 for the same quarter of 1994.
Comparison of Operations for the Nine Month Periods Ended September
30, 1995 and 1994
Net sales for the nine months ended September 30, 1995 were
$3,226,007, a decrease of 4% from net sales of $3,366,905 for the same
period in 1994. The lower net sales in the nine month period in 1995,
as compared to the same period in 1994, was a result of reduced
product volume and processing demand combined with increased
competitive pricing pressures. Although net sales in the nine month
period of 1995 was lower than the same period of 1994, third quarter
net sales in 1995 were 3% higher than third quarter net sales in 1994,
which indicated a trend of increasing demand for processing into the
fourth quarter of 1995.
Cost of sales for the nine month period of 1995 increased to
$2,134,565 from $1,711,035 in the comparable period of 1994. The
increase was primarily due to the operation of the Salem facility
which was not in operation during the comparable nine month period of
1994. As a result, the gross profit percentage for the nine month
period of 1995 decreased to 34% from 50% in 1994.
SG&A expenses of $1,214,466 for the nine month period of 1995
decreased from $1,283,143 for the same period in 1994. Certain SG&A
expenses, such as salaries and professional fees, were reduced in
1995. The resulting decrease was significantly offset by additional
expenses associated with the Salem facility, which was not in
operation during the 1994 period.
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<PAGE>
As a result of the foregoing, the loss from operations for the nine
month period of 1995 was $123,024 as compared to income of $372,727 in
1994.
Investment income was $8,947 in the nine month period of 1995 as
compared to $7,449 for the same period in 1994, a result of increased
interest rates.
Expenses of the Salem facility in the nine month period of 1995 are
included in cost of sales, SG&A, and other interest expense. Salem
facility expenses of $156,138 in 1994 reflected the cost of the idle
facility during that period.
Expenses of Rockaway Industrial Park - Parcel I increased to $172,268
in the nine month period of 1995 as compared to $90,901 in 1994. The
increase was due to additional DEP oversight costs billed for DEP
fiscal years 1993, 1994, and 1995 related to the ongoing environmental
remediation (Note 4).
Other interest expense of $196,900 in the nine month period of 1995,
increased due to the higher fixed interest rate of the long-term debt
related to the Salem facility (which was converted in December 1994 to
a fixed rate of 10% from a lower floating rate), interest related to
financing of additional Cobalt 60, and a short-term loan incurred in
the fourth quarter of 1994. Interest expense in 1994 of $41,465
related to Cobalt 60 financing and lease agreements.
Other income of $146,919 is primarily the net proceeds of a litigation
settlement of $144,830 (Note 10).
As a result of the foregoing, the Company reported a net loss before
taxes of $336,326 for the nine months of 1995, as compared to net
income before taxes of $90,282 in 1994.
Income tax expense for the nine month period of 1994 was estimated to
be $1,390. The estimate of income tax expense is the net of regular
income tax offset by the available net operating loss carryforwards
for Federal income taxes and State income taxes.
For the nine month period ended September 30, 1995, the Company
reported a net loss of $336,326 or $.31 per share, as compared to net
income of $90,282 or $.08 for the same period of 1994.
Financial Condition
At September 30, 1995, the Company had a working capital deficit of
$698,143, as compared to a working capital deficit of $509,708 at
December 31, 1994. The working capital decrease of $188,435 was
largely due to the operating costs and Cobalt 60 financing related to
the Salem Facility which began operations in October 1994. The
Company's ability to eliminate the working capital deficit is
dependent on increasing the current level of sales revenues and
obtaining external financing. Based on current forecasts, management
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<PAGE>
anticipates that sales revenues will increase during the fourth
quarter of 1995; however, the Company will require financing to meet
its fourth quarter obligations. Accordingly the Company is negotiating
with certain investment bankers for a public or private sale of equity
securities. Management believes that the sale of securities is
feasible, although it may result in significant dilution to existing
stockholders and there is no assurance that it can be timely obtained.
The Company is negotiating and expects to obtain a short-term credit
line of $250,000 (which if obtained will require the pledge of certain
assets) to enable the Company to pay the City of Salem Municipal Port
Authority, Port Development Revenue Bonds annual principal payment of
$250,000 due December 1, 1995.
The Company has received additional DEP ACO II expenditure statements
showing that reimbursable DEP expenditures increased by $154,312 with
respect to DEP fiscal year billing periods of 1993, 1994, and 1995.
The Company has protested certain of these oversight expenditures and
requested that the DEP provide justification. The DEP has temporarily
suspended the Company's obligation to make certain payments due under
the terms of the ACO II and, in cooperation with the DEP, the Company
has paid part of other outstanding DEP billings.
In November 1995, the Company arranged for the acquisition of
additional Cobalt 60 under an existing lease agreement to be installed
in the fourth quarter of 1995 and the first quarter of 1996.
Anticipated sales revenues generated from the additional Cobalt 60 are
projected to be sufficient to meet payments under the lease.
The Company's net cash provided by operating activities in the nine
month period of 1995 was $260,721 as compared to $377,098 for the same
period of 1994. Cash provided by operations in 1995 decreased
primarily due to lower net sales and operating costs related to the
reopened Salem facility. Investing activities in the nine month period
of 1995 used net cash of $48,556 as compared to net cash provided of
$59,280 in 1994, due to the offsetting decrease in short-term
investments in 1994. Net cash used in financing activities during the
nine month period ended September 30, 1995 was $288,711 compared to
net cash used of $449,163 in the 1994 period. The lower amount of net
cash used in financing activities in the 1995 period was primarily a
result of lower amounts paid to the DEP. The net decrease in cash and
cash equivalents in the nine month period ended September 30, 1995 was
$76,546 as compared to a net decrease of $12,785 for the same period
in 1994.
Part II. Other Information
Item 1. Legal Proceedings. - not applicable
Item 2. Changes in Securities. - none
Item 3. Defaults Upon Senior Securities. - not applicable.
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<PAGE>
Item 4. Submission of Matters to a Vote of Securityholders. - none
Item 5. Other Information - none
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
--------
27. Financial Data Schedule
(b) Reports on Form 8-K
-------------------
No reports on Form 8-KSB were filed during the fiscal
quarter with respect to which this report is filed.
-15-
<PAGE>
Signatures
In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
RTI INC.
Date: November 10, 1995 /s/ Theo W. Muller
-------------------------
Theo W. Muller
President
Date: November 10, 1995 /s/ R. Stephen Maico
-----------------------
R. Stephen Maico
Treasurer
Principal Accounting and
Financial Officer
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<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL
INFORMATION EXTRACTED FROM THE REGISTRANT'S
UNAUDITED CONSOLIDATED BALANCE SHEET AS OF
SEPTEMBER 30, 1995 AND UNAUDITED CONSOLIDATED
STATEMENT OF OPERATIONS FOR THE NINE MONTHS
THEN ENDED AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS
<MULTIPLIER> 1
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<PERIOD-TYPE> 9-MOS
<CASH> 95,652
<SECURITIES> 0
<RECEIVABLES> 563,366
<ALLOWANCES> (24,000)
<INVENTORY> 0
<CURRENT-ASSETS> 687,649
<PP&E> 14,885,839
<DEPRECIATION> 8,022,562
<TOTAL-ASSETS> 7,743,691
<CURRENT-LIABILITIES> 1,385,792
<BONDS> 2,159,529
<COMMON> 86,154
0
0
<OTHER-SE> 16,013,900
<TOTAL-LIABILITY-AND-EQUITY> 7,743,691
<SALES> 3,226,007
<TOTAL-REVENUES> 3,226,007
<CGS> 2,134,565
<TOTAL-COSTS> 3,349,031
<OTHER-EXPENSES> (172,268)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (196,900)
<INCOME-PRETAX> (336,326)
<INCOME-TAX> 0
<INCOME-CONTINUING> (336,326)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (336,326)
<EPS-PRIMARY> (.31)
<EPS-DILUTED> (.31)
</TABLE>
