FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended: 3/31/95 Commission File Number: 0-16479
PEOPLES TELEPHONE COMPANY, INC.
(Exact Name of registrant as specified in its charter)
NEW YORK 13-2626435
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) I.D. No.)
2300 NORTHWEST 89TH PLACE, MIAMI, FLORIDA 33172
(Address of principal executive offices) (Zip Code)
Registrant's telephone number: (305) 593-9667
--------------------
Indicate by check mark whether the Registrant has (1) 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. [X] Yes ___ No
As of April 30, 1995, the number of shares outstanding of the Registrant's
Common Stock was 16,051,875.
<PAGE>
PEOPLES TELEPHONE COMPANY, INC.
CONSOLIDATED BALANCE SHEET
(IN THOUSANDS)
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
ASSETS 1995 1994
------------- -----------
(UNAUDITED)
<S> <C> <C>
Current assets
Cash and cash equivalents........................................... $ 6,721 $ 7,663
Account receivable net of allowance for doubtful accounts of
$5,236 and $6,035.................................................. 16,550 17,682
Inventory........................................................... 3,324 2,981
Prepaid expenses and other current assets.......................... 4,030 3,276
Net assets of discontinued operations............................... 27,380 28,375
---------- ---------------
Total current assets............................................. 58,005 59,977
Property and equipment, net........................................... 74,514 76,379
Location contracts, net............................................... 31,075 31,877
Goodwill, net......................................................... 6,020 6,221
Intangible assets, net................................................ 2,636 2,802
Other assets, net..................................................... 12,628 11,882
Deferred income taxes................................................. 3,396 1,453
---------- ---------------
Total assets..................................................... $ 188,274 $ 190,591
========== ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Notes payable and current maturities of long-term debt.............. $ 18,540 $ 14,286
Current portion of obligations under capital leases................. 2,314 2,738
Accounts payable and accrued expenses............................... 22,039 22,799
Accrued interest payable............................................ 755 1,061
Income and other taxes payable...................................... 2,491 2,691
----------- ---------------
Total current liabilities........................................ 46,139 43,575
Notes payable and long-term debt...................................... 89,862 94,390
Obligations under capital leases...................................... 3,460 3,911
Deferred gain on sale of assets....................................... 3,400 -
---------- ---------------
Total liabilities................................................ 142,861 141,876
---------- ---------------
Minority interest..................................................... - -
Commitments and contingencies ........................................ - -
Shareholders' equity.................................................. - -
Preferred stock; $.01 par value; 4,300
shares authorized; none issued and outstanding.................... - -
Convertible preferred stock; Series A, $.01 par value; 100 shares
authorized; none issued and outstanding........................... - -
Convertible preferred stock; Series B, $.01 par value; 600 shares
authorized; none issued and outstanding........................... - -
Common stock; $.01 par value; 25,000 shares authorized;
15,850 and 15,789 shares issued and outstanding................... 159 158
Capital in excess of par value...................................... 58,078 58,143
Accumulated deficit ................................................ (12,824) (9,586)
---------- --------------
Total shareholders' equity....................................... 45,413 48,715
---------- --------------
Total liabilities and shareholders' equity....................... $ 188,274 $ 190,591
========== ==============
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
2
<PAGE>
PEOPLES TELEPHONE COMPANY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED
MARCH 31,
---------------------------------------------------
1995 1994
------------ ------------
<S> <C> <C>
Revenues
Coin calls ............................................. $ 19,061 $ 17,857
Non-coin calls.......................................... 8,271 6,968
Service and other....................................... 122 301
------------ ------------
Total revenues....................................... 27,454 25,126
Costs and expenses
Telephone charges....................................... 8,491 8,189
Commissions............................................. 6,297 4,277
Field service and collection............................ 4,628 4,916
Depreciation and amortization........................... 4,741 4,112
Selling, general and administrative..................... 2,368 2,582
Interest................................................ 1,479 989
------------ ------------
Total costs and expenses............................. 28,004 25,065
(Loss) income from continuing operations before taxes..... (550) 61
Benefit from (provision for) income taxes................. 206 (23)
------------ ------------
(Loss) income from continuing operations ................. (344) 38
------------ ------------
Discontinued operations
Income from operations, net of tax provision of $536.... - 893
(Loss) income on disposition............................. - -
------------ ------------
Income from discontinued operations..................... - 893
Extraordinary loss from extinguishment of debt, net....... (2,894) -
------------
Net (loss) income.................................... $ (3,238) $ 931
============= ============
Earnings (loss) per common share
Loss from continuing operations.......................... $ (.02) $ -
Income from discontinued operations...................... - .06
Extraordinary loss from extinguishment of debt, net...... (.18) -
------------ ------------
Net (loss) income.................................... $ (.20) $ .06
============= ============
Weighted average common and common equivalent shares
outstanding.............................................. 15,829 16,425
============ ============
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
3
<PAGE>
PEOPLES TELEPHONE COMPANY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED, IN THOUSANDS)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED
MARCH 31,
-------------------------------------------
1995 1994
------------ ------------
<S> <C> <C>
Cash flows from operating activities:
Net (loss) income............................................ $ (3,238) $ 931
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization.............................. 4,741 4,112
Deferred income taxes...................................... (1,943) 23
Extraordinary loss from extinguishment of debt............. 2,894 -
Changes in assets and liabilities:
Decrease (increase) in accounts receivable................. 1,132 (3,989)
Increase in inventory...................................... (343) (2,254)
Increase in prepaid expenses and other current assets...... (754) (29)
Decrease (increase) in other assets........................ 1,610 (3,495)
Decrease in accounts payable and accrued expenses.......... (760) (5,880)
(Decrease) increase in accrued interest.................... (306) 103
(Decrease) increase in taxes payable....................... (200) 673
Net effect of discontinued operations...................... (1,855) 1,852
------------ ------------
Net cash provided by (used in) operating activities............. 978 (7,953)
------------ ------------
Cash flow from investing activities:
Payments of acquisitions and certain contracts............... (435) (2,072)
Property and equipment additions............................. (1,272) (3,506)
Proceeds from sales of assets................................ 1,000 -
Investment in joint ventures................................. - (1,067)
------------ ------------
Net cash used in investing activities........................... (707) (6,645)
------------ ------------
Cash flow from financing activities:
Net (payment) borrowings under note payable to bank.......... (274) 11,890
Debt issuance costs.......................................... - (1,318)
Principal payments under capital lease obligations........... (875) (321)
Officer loans................................................ (190) -
Exercise of stock options and warrants....................... 126 1,029
------------ ------------
Net cash (used in) provided by financing activities............. (1,213) 11,280
------------ ------------
Net decrease in cash and cash equivalents....................... (942) (3,318)
Cash and cash equivalents at beginning of period................ 7,663 4,529
------------ ------------
Cash and cash equivalents at end of period...................... $ 6,721 $ 1,211
============ ============
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
4
<PAGE>
PEOPLES TELEPHONE COMPANY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1995 AND MARCH 31, 1994
(UNAUDITED)
NOTE 1 - UNAUDITED INTERIM INFORMATION:
The accompanying interim consolidated financial data is unaudited; however,
in the opinion of management, the interim data includes all adjustments,
consisting of only normal recurring adjustments, necessary for a fair
statement of the results for the interim periods.
The results of operations for the three months ended March 31, 1995 are not
necessarily indicative of the results to be expected for the year ending
December 31, 1995.
NOTE 2 - EARNINGS PER SHARE:
The treasury stock method was used to determine the dilutive effect of the
options and warrants on earnings per share data. For 1994, the calculation
of earnings per common share assuming full dilution had no effect. For
1995, common stock equivalents were excluded since the effect would be
anti-dilutive. Therefore, fully diluted earnings per share is not
presented.
See earnings (loss) per common share calculation as summarized on page 7.
NOTE 3 - LONG-TERM DEBT:
On March 22, 1995, the Company amended certain terms contained in its Third
Amended Loan Agreement (the "Amendment"). Under the Amendment, the $125
million revolving line of credit was reduced to $100 million, with monthly
principal reductions of $1.5 million commencing on May 1, 1995 and all
outstanding principal balances due in full on May 31, 1996. The new
facility bears interest at the Bank's prime rate plus 2% beginning April 1,
1995 and reduces certain restrictive covenants for 1995 which, among other
things, require the Company to maintain certain net worth and cash flow
levels and places certain restrictions on the payment of dividends.
As a result of the Amendment, the Company has recorded an extraordinary
loss of $4.6 million for the write-off of deferred financing costs, net of
the income tax benefit of approximately $1.7 million.
The Company has retained an investment banking firm to undertake a Rule
144A offering of approximately $85 million in Senior Notes due 2002. In
connection with the completion of the Senior Note offering, which is
expected to close by early June 1995, the Company will enter into a new $40
million revolving credit facility. Proceeds from the sale of the Notes
together with borrowings under the new credit facility will be used to
refinance the existing $100 million credit facility, which will provide the
Company with approximately $23 million undrawn and available under the new
credit facility. The Notes offered will not be registered under the
Securities Act and may not be offered or resold in the United States absent
registration or an applicable exemption from the registration requirements.
There can be no assurance that the contemplated refinancing will be
completed, or if completed, that it will be on terms favorable to the
Company.
5
<PAGE>
NOTE 4 - DISCONTINUED OPERATIONS:
During February 1995, the Company sold its prepaid calling card business
to Global Link Teleco Corporation ("Global Link") for approximately $6.3
million. The Company received $1.0 million in cash, $5.3 million in notes
receivable and 9.9% of the outstanding common stock of Global Link. For
financial accounting purposes, the net gain of approximately
$3.4 million will be deferred until cash is received.
NOTE 5 - SUBSEQUENT EVENTS:
During April 1995, the Company settled a dispute with one of its vendors
which resulted in a reduction of the amounts owed. Accounts payable and
telephone charges have been reduced by approximately $1.3 million in
the accompanying financial statements to reflect this settlement.
6
<PAGE>
PEOPLES TELEPHONE COMPANY, INC.
COMPUTATION OF EARNINGS (LOSS) PER COMMON SHARE
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
----------------------------------------------
1995 1994
------------ ------------
<S> <C> <C>
(Loss) income from continuing operations.................................. $ (344) $ 38
Income from discontinued operations....................................... - 893
Extraordinary loss from extinguishment of debt, net....................... (2,894) -
------------ ------------
Net (loss) income......................................................... $ (3,238) $ 931
============= ============
Number of shares:
Weighted average common shares outstanding................................ 15,829 15,611
Add: Net additional shares issuable(1).................................... - 814
------------ ------------
Weighted average shares used in the per share computation................. 15,289 16,425
============ ============
Earnings per common and common equivalent share
Loss from continuing operations........................................... $ (.02) $ -
Income from discontinued operations....................................... - .06
Extraordinary loss from extinguishment of debt, net....................... (.18) -
------------ ------------
Net (loss) income......................................................... $ (.20) $ 0.06
============= ============
<FN>
(1) Assumes exercise of outstanding common stock equivalents (options and
warrants) at the beginning of the period, net of the 20% limitation on
the assumed repurchase of stock.
</FN>
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
7
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following discussion and analysis compares the quarter ended March
31, 1995 to the quarter ended March 31, 1994, and should be read in
conjunction with the consolidated financial statements and notes thereto
appearing elsewhere in this Form 10-Q. The financial results discussed
below relate to continuing operations which primarily consist of the public
pay telephone business.
REVENUES
The Company primarily derives its revenues from coin and non-coin
calls. Coin revenue is generated exclusively from calls made by depositing
coins in the Company's public pay telephones. Coin revenue represented
approximately 69.4% and 71.1% of total revenues from continuing operations
for the quarters ended March 31, 1995 and 1994, respectively. Coin revenue
increased 6.7% to $19.1 million during the quarter ended March 31, 1995
compared to the same period in 1994. This revenue growth was primarily
attributable to growth in the Company's installed base of public pay
telephones. The Company's installed public pay telephone base increased to
approximately 40,000 at March 31, 1995 from approximately 35,700 at March
31, 1994. The decline in coin revenues per telephone was primarily
attributable to the addition of telephones between periods having a lower
average coin revenue per telephone than did the Company's installed base
during the first quarter of 1994.
Non-coin revenue represented approximately 30.1% and 27.7% of total
revenues from continuing operations for the quarters ended March 31, 1995
and 1994, respectively. Non-coin revenue is derived from calling card
calls, credit card calls, collect calls and third party billed calls. For
the quarter ended March 31, 1995, revenues from non-coin calls increased
18.7% to approximately $8.3 million, compared to the quarter ended March
31, 1994. The increase was primarily attributable to the increase in the
Company's installed base of public pay telephones described above and the
increase in the number of calls completed through the Company's private
label operator service program during the quarter ended March 31, 1995,
compared to the same period in 1994.
The Company records the total amount the end user pays for the call
(net of taxes) as revenue when the call is completed through the Company's
private label operator service. In contrast, the Company records as revenue
the amount it receives from the third-party operator service provider which
represents a negotiated percentage of the total amount the caller pays for
the call. The Company used its private label operator service or a third
party operator service provider based on which service the Company believed
netted it the highest gross margin from the call.
OPERATING EXPENSES
Operating expenses include telephone charges, commissions, field
service and collection expenses and selling, general and administrative
expenses. Telephone charges consist of local line charges to LECs which
include costs of basic service and transport of local coin calls, long
distance transmission charges and network costs and billing, collection and
validation costs. Commissions represent payments to Property Owners for
revenues generated by public pay telephones located on their properties.
Field service and collection expenses represent the costs of servicing and
maintaining the telephones on an ongoing basis, costs of collecting coin
from the telephones, and other related operational costs. Selling, general
and administrative expenses primarily consist of payroll and related costs,
legal and other professional fees, promotion and advertising expenses,
property, gross receipt and certain other taxes, corporate travel and
entertainment, and various other expenses. Total operating expenses were
approximately 79.3% and 79.5% of total revenues from continuing operations
for the quarters ended March 31, 1995 and 1994, respectively.
8
<PAGE>
Telephone charges decreased as a percentage of total revenues from
continuing operations to 30.9% for the quarter ended March 31, 1995,
compared to 32.5% for the same period in 1994. Telephone charges for the
1995 quarter include a reduction of interexchange carrier expenses related
to a settlement with a service provider for certain billing errors and
underpayment of operator service revenue of approximately $1.3 million.
This reduction was offset by an increase in telephone charges as a result
of the increase in the installed public pay telephone base and an increase
in the number of calls completed through the Company's private label
operator service program during the quarter ended March 31, 1995, compared
to the same period in 1994. The Company pays the costs incurred to
transmit, bill, collect and validate the call when the call is completed
through its private label operator services. In contrast, the Company
incurs no such cost when a third party operator service provider completes
the call. Telephone charges for the 1994 y quarter included one-time income
adjustments of approximately $0.6 million for a contract signing bonus and
volume discounts credited to the Company by certain of its service
providers.
Commissions as a percentage of total revenues from continuing
operations were approximately 22.9% and 17.0% for the quarters months ended
March 31, 1995 and 1994, respectively. The increase in commissions as a
percentage of revenues was primarily attributable to (1) higher commission
rates paid in connection with the recently obtained Atlanta Hartsfield
International Airport account and (2) the $0.6 million reduction of
commission expense in the 1994 first quarter resulting from prior estimated
commission overpayments.
Field service and collection expenses as a percentage of total
revenues from continuing operations was 16.9% and 19.6% for the first
quarter of 1995 and 1994, respectively. The decrease in these expenses was
primarily attributable to the Company's efforts to reduce operating
expenses which were commenced in June 1994 and included the downsizing of
the Company's field personnel. Selling, general and administrative expenses
decreased to 8.6% of total revenues from continuing operations in the 1995
first quarter versus 10.3% for the 1994 first quarter. The decrease in
selling, general and administrative expenses was primarily attributable to
the cost reduction plan and reengineering efforts commenced by the Company
in June 1994.
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION
EBITDA from continuing operations increased by approximately $0.5
million to $5.7 million for the quarter ended March 31, 1995, compared to
the same period in 1994. This increase was primarily attributable to the
growth in the Company's installed base of public pay telephones and the
decrease in telephone charges as a percentage of revenue as a result of the
settlement with a service provider mentioned above, which was partially
offset by the increase in commission expense noted above.
DEPRECIATION AND AMORTIZATION
Depreciation is based on the cost of the telephones, booths,
pedestals, and other enclosures, related installation costs and line
interconnection charges and is calculated on a straight-line method using a
ten-year useful life. Amortization is primarily based on acquisition costs
including location contracts, goodwill and non-competition provisions and
is calculated on a straight-line method using estimated useful lives
ranging from five to 20 years. Depreciation and amortization increased to
$4.7 million for the quarter ended March 31, 1995, compared to $4.1 million
for the same period in 1994. The increase in depreciation and amortization
is primarily attributable to increases in the number of installed public
pay telephones that resulted from acquisitions during 1994. Depreciation
and amortization as a percentage of total revenues from continuing
operations increased to 17.3% during the first quarter of 1995 compared to
16.4% for the first quarter of 1994. This increase was primarily
attributable to the increase in the number of acquired public pay
telephones and the decrease in coin revenue noted above.
9
<PAGE>
INTEREST EXPENSE
In the first quarter of 1995, interest expense increased 49.7% to $1.5
million. The increase was primarily attributable to increased bank
borrowings under the Existing Credit Agreement. In addition, the Company
experienced higher interest rates under the Existing Credit Agreement
during 1995 which is consistent with overall increases in market interest
rates.
PROVISION FOR INCOME TAXES
The Company's benefit from (provision for) income taxes increased
approximately $0.2 million for the quarter ended March 31, 1995 from the
1994 period primarily due to a loss from continuing operations before taxes
of approximately $0.6 million in the first quarter of 1995, compared to
income from continued operations before taxes of approximately $61,000 for
the first quarter of 1994.
NET INCOME (LOSS) FROM CONTINUING OPERATIONS
The Company had a net loss from continuing operations of approximately
$0.3 million for the quarter ended March 31, 1995 compared to net income
from continued operations of approximately $38,000 for the same period in
1994.
EXTRAORDINARY ITEM
The Company had an extraordinary loss from the write-off of deferred
financing costs associated with the early extinguishment of debt of
approximately $4.6 million, net of the related income tax benefit of $1.7
million.
LIQUIDITY AND CAPITAL RESOURCES
During the first quarter of 1995, the Company financed its operations
primarily from operating cash flow. For the quarter ended March 31, 1995,
the Company's operating cash flow was $1.0 million compared to $(8.0)
million for the same period in 1994.
The Company's working capital was approximately $11.9 million, with a
current ratio of 1.26 to 1, at March 31, 1995. This is compared to working
capital of $16.4 million and a current ratio of 1.38 to 1 at December 31,
1994. The decrease in the Company's working capital and current ratio was
primarily attributable to an additional $4.5 million of debt repayments due
within 12 months of March 31, 1995 under the amended terms of the Existing
Credit Agreement, as compared to December 31, 1994.
As a result of operating losses, including losses from the
Discontinued Operations, the Company was not in compliance with certain of
the financial covenants in the Existing Credit Agreement as of December 31,
1994. The Existing Credit Agreement was amended on March 22, 1995 to (i)
reduce the size of the Existing Credit Agreement to $100.0 million, (ii)
shorten the maturity of the Existing Credit Agreement from February 17,
1998 to May 31, 1996 and provide for monthly principal payments of $1.5
million commencing May 1, 1995 and (iii) amend the covenants in the
Existing Credit Agreement to make them less restrictive through the end of
1995.
In an effort to extend its debt maturities to reflect the long-term
nature of its assets and to provide increased operational and financial
flexibility to take advantage of growth opportunities in its core public
pay telephone business, the Company has commenced a private placement of
approximately $85 million in Senior Notes due 2002 (the "Notes") with
completion of the offering of the Notes which is expected to close by early
June 1995, the Company will enter into
10
<PAGE>
a new $40 million revolving credit facility. Proceeds from the sale of
the Notes together with borrowings under the new credit facility will be
used to refinance the existing credit facility, which is expected to
provide the Company with approximately $23 million undrawn and available
under the new credit facility. The Notes offered in the private placement
will not be registered under the Act and may not be offered or resold in
the United States absent registration or an applicable exemption from the
registration requirements. The Note Offering is conditioned upon the
completion of the new credit facility and the new credit facility is
conditioned upon the completion of the Note Offering. There can be no
assurance that the contemplated refinancing will be completed, or if
completed that it will be on terms favorable to the Company.
DISCONTINUED OPERATIONS
During December 1994, in an effort to return its focus to its core
public pay telephone business, the Company's Board of Directors approved
the divestiture of its inmate telephone, prepaid calling card and
international telephone centers and cellular telephone rental operations.
During February 1995, the Company sold its prepaid calling card
business to Global Link Teleco Corporation formerly known as Phone Zone
Teleco Corporation ('Global Link') for approximately $6.3 million. The
Company received $1.0 million in cash, $5.3 million in promissory notes and
9.9% of the outstanding common stock of Global Link (increasing the
Company's equity stake to 19.9% of the common stock of Global Link). For
financial accounting purposes, the net gain of approximately $3.4 million
will be deferred until cash on the notes is received. The 1994 financial
statements included a net loss after income taxes of approximately $1.3
million for losses from January 1, 1994 through February 15, 1995, the
divestiture date.
The Company is in the process of divesting the remaining business
segments and has recorded provisions for the estimated impairment of asset
values and losses from January 1, 1994 through the estimated divestiture
date for its inmate telephone, international telephone center and cellular
telephone rental operations in the December 31, 1994 financial statements.
11
<PAGE>
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
Reports on Form 8-K
On March 2, 1995, the Company filed a Current Report on Form 8-K which
reported the sale of substantially all of the Company's prepaid telephone
calling card assets to Global Link Teleco Corporation.
On May 12, 1995, the Company filed a Current Report on Form 8-K which
reported the issuance of the Company's Press Release dated May 10, 1995
concerning the Company's refinancing plan, a copy of which was filed
pursuant to Rule 135c(d) under the Securities Act of 1933, as amended.
12
<PAGE>
SIGNATURE
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.
PEOPLES TELEPHONE COMPANY, INC.
Date: May 12, 1995 /S/ BONNIE S. BIUMI
-------------------------------
Bonnie S. Biumi
Chief Financial Officer
13
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000819694
<NAME> PEOPLES TELEPHONE COMPANY, INC.
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<CASH> 6,721,000
<SECURITIES> 0
<RECEIVABLES> 21,786,000
<ALLOWANCES> (5,236,000)
<INVENTORY> 3,324,000
<CURRENT-ASSETS> 58,005,000
<PP&E> 119,624,000
<DEPRECIATION> (45,110,000)
<TOTAL-ASSETS> 188,274,000
<CURRENT-LIABILITIES> 46,139,000
<BONDS> 0
<COMMON> 0
0
159,000
<OTHER-SE> 45,254,000
<TOTAL-LIABILITY-AND-EQUITY> 188,274,000
<SALES> 27,454,000
<TOTAL-REVENUES> 27,454,000
<CGS> 19,416,000
<TOTAL-COSTS> 26,525,000
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,479,000
<INCOME-PRETAX> (550,000)
<INCOME-TAX> 206,000
<INCOME-CONTINUING> (344,000)
<DISCONTINUED> 0
<EXTRAORDINARY> (2,894,000)
<CHANGES> 0
<NET-INCOME> (3,238,000)
<EPS-PRIMARY> (.20)
<EPS-DILUTED> (.20)
</TABLE>
