SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended October 3, 1998 - Commission file Number 0-17038
Concord Camera Corp.
(Exact names of registrant as specified in its charter)
New Jersey 13-3152196
(State or other Jurisdiction (I.R.S. Employer
of Incorporation) Identification No.)
35 Mileed Way, Avenel, New Jersey 07001
(Address of principal executive office) (Zip code)
732/499-8280
(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_____
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common Stock, no par value -- 11,214,451 shares as of October 30, 1998
------------------------------
Page 1 of 11
Exhibit Index on Page 10
1
<PAGE>
<TABLE>
PART 1. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
Concord Camera Corp.
Consolidated Balance Sheets
<CAPTION>
October 3, June 30,
1998 1998
(unaudited)
<S> <C> <C>
Current assets:
Cash $23,774,815 $7,119,699
Accounts receivable, net 15,984,457 19,961,534
Inventories 23,508,537 21,458,595
Prepaid expenses and other current assets 4,353,603 3,238,129
------------- -------------
Total current assets 67,621,412 51,777,957
Plant and equipment, net 17,155,960 15,930,486
Goodwill, net 622,576 727,633
Other assets 4,431,207 3,645,703
------------- -------------
Total assets $89,831,155 $72,081,779
=========== ===========
Current liabilities:
Short-term debt $11,163,685 $10,822,012
Current portion of long-term debt 36,747 35,676
Current obligations under capital leases 892,375 870,173
Accounts payable 15,117,516 14,213,757
Accrued expenses 6,237,259 4,418,604
Income taxes payable 608,994 379,662
Other current liabilities 451,326 224,781
-------------- -------------
Total current liabilities 34,507,902 30,964,665
Deferred income taxes 689,169 689,169
Senior Notes 14,850,000 -
Long-term debt 351,197 2,460,784
Obligations under capital leases 1,178,073 1,409,865
Other long-term liabilities 452,548 452,548
-------------- -------------
Total liabilities 52,028,889 35,977,031
------------ -----------
Stockholders' equity:
Common stock, no par value, 40,000,000 authorized; 11,214,451
issued as of October 3, and June 30, 1998. 40,094,559 40,094,559
Paid in capital 850,786 850,786
Retained earnings (deficit) 836,173 (1,622,215)
Notes receivable arising from common stock purchase agreements (2,801,555) (2,765,463)
----------- -----------
38,979,963 36,557,667
Less: treasury stock, at cost; 234,183 and 63,553 shares, respectively (1,177,697) (452,919)
----------- ------------
Total stockholders' equity 37,802,266 36,104,748
------------ ------------
Total liabilities and stockholders' equity $89,831,155 $72,081,779
=========== ===========
See accompanying notes to consolidated financial statements
</TABLE>
2
<TABLE>
Concord Camera Corp.
Consolidated Income Statements
<CAPTION>
(Unaudited)
For the quarters ended
October 3, 1998 September 30, 1997
<S> <C> <C>
Net sales $31,023,827 $19,806,282
Cost of products sold 22,580,881 14,512,582
------------- ------------
Gross profit 8,442,946 5,293,700
Selling expenses 2,393,179 1,696,467
General and administrative expenses 2,456,330 2,385,189
Financial expenses 805,189 398,921
Other (income) expense, net 86,095 (70,172)
Legal expenses and settlement costs 14,765 41,594
------------- -----------
Income before income taxes 2,687,388 841,701
Provision for income taxes 229,000 70,282
--------------- ---------------
Net Income $2,458,388 $771,419
============= =============
Weighted average common shares outstanding- basic 11,139,915 10,880,473
Incremental shares using treasury stock method 720,636 378,098
--------------- --------------
Weighted average common shares outstanding-diluted 11,860,551 11,258,571
============= ============
Basic earnings per share $0.22 $0.07
================= ================
Diluted earnings per share $0.21 $0.07
================= ================
See accompanying notes to consolidated financial statements.
</TABLE>
3
<PAGE>
<TABLE>
Concord Camera Corp.
Consolidated Statements of Cash Flows
<CAPTION>
(Unaudited)
For the quarters ended
October 3, 1998 September 30, 1997
<S> <C> <C>
Cash flows from operating activities:
Net income $2,458,388 $771,419
------------ -------------
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization 1,011,546 838,298
Interest income on notes receivable arising from common stock agreements (36,092) (36,092)
Change in assets and liabilities:
(Increase) decrease in accounts receivable 3,977,077 (1,175,384)
(Increase) in inventories (2,049,942) (5,603,256)
(Increase) in prepaid expenses and other current assets (1,141,291) (925,411)
(Increase) decrease in other assets (913,893) 499,945
Increase in accounts payable 903,759 6,370,692
Increase in accrued expenses 1,818,655 562,102
Increase in income taxes payable 229,332 70,000
Increase (decrease) in other current liabilities 226,537 (129,619)
Increase in deferred income taxes - 45
------------ -----------
Total adjustments 4,025,688 471,320
----------- -------------
Net cash provided by operating activities 6,484,076 1,242,739
----------- ------------
Cash flows from investing activities:
Purchase of property, plant and equipment (1,977,749) (851,076)
Purchase of Treasury Stock (724,778) -
----------- ------------------
Net cash (used in) investing activities (2,702,527) (851,076)
----------- -------------
Cash flows from financing activities:
Net borrowings under short-term debt agreements 341,673 543,707
Net borrowings (repayments) of long-term debt 12,741,484 (8,005)
Principal payments under capital lease obligations (209,590) (153,835)
------------ --------------
Net cash provided by financing activities 12,873,567 381,867
------------ -------------
Net increase in cash 16,655,116 773,530
Cash at beginning of period 7,119,699 5,297,820
------------ ------------
Cash at end of period $23,774,815 $6,071,350
=========== ===========
See accompanying notes to consolidated financial statements. See Note 3
Supplemental disclosure of cash flow information.
</TABLE>
4
CONCORD CAMERA CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
October 3, 1998
(unaudited)
Note 1 - General
In the opinion of Concord Camera Corp. ("the Company"), the accompanying
unaudited financial statements contain all adjustments, including normal
recurring adjustments, necessary for the fair presentation of the Company`s
financial position as of October 3, 1998, and the results of operations and cash
flows for the periods ended October 3, 1998 and September 30, 1997.
The Notes to Consolidated Financial Statements, which are included in the
Company's 1998 Form 10-K Annual Report, should be read with the accompanying
financial statements.
In 1997, the Financial Accounting Standards Board ("FASB") issued Statement No.
128, Earnings per Share ("Statement 128"). Statement 128 replaced the
calculation of primary and fully-diluted earnings per share with basic and
diluted earnings per share. Unlike primary earnings per share, basic earnings
per share excludes any dilutive effects of options, warrants and convertible
securities. Diluted earnings per share are calculated on a basis similar to
fully-diluted earnings per share. All applicable earnings per share amounts have
been presented, and where necessary, restated to conform to the Statement 128
requirements.
Note 2 - Inventories
Inventories are comprised of the following:
October 3, June 30,
1998 1998
Raw materials and components $ 14,311,422 $ 13,033,653
Finished goods 9,197,115 8,424,942
------------- -------------
$23,508,537 $21,458,595
=========== ===========
Note 3 - Supplemental Disclosures of Cash Flow Information:
For the Quarter ended
October 3, September 30,
1998 1997
Cash paid for interest $ 700,250 $ 321,401
=========== ===========
Cash paid for taxes $ - $ 807
=========== ===========
5
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
AND FINANCIAL CONDITION
Results of Operations
The quarter ended October 3, 1998 compared to the quarter ended September 30,
1997.
Total revenues for the quarters ended October 3, 1998 and September 30,
1997 were approximately $31,024,000 and $19,806,000, respectively, an increase
of approximately $11,218,000 or 56.6%. The increase in revenues for the first
quarters of Fiscal 1999 over the first quarters of Fiscal 1998 resulted
principally from increases in sales to retail and OEM customers, including a
full quarters of production of the Company's Advanced Photo System traditional
cameras.
Sales by Concord Camera HK Limited ("Concord HK") for the quarters
ended October 3, 1998 and September 30, 1997 were approximately $27,160,000 and
$15,836,000, respectively, an increase of approximately $11,324,000 or 71.5%.
The increase is due primarily to the increases in sales to retail and OEM
customers. OEM sales for the quarters ended October 3, 1998 and September 30,
1997 were approximately $20,905,000 and $10,938,000, respectively, an increase
of approximately $9,967,000 or 91.1%. Retail sales for the quarters ended
October 3, 1998 and September 30, 1997 were approximately $6,255,000 and
$4,898,000, respectively, an increase of approximately $1,357,000 or 27.7%.
These increases were due to increases in traditional and single-use camera
revenues by the Company's retail and OEM customers.
Consolidated sales of Concord Americas for the quarters ended October
3, 1998 and September 30, 1997 were approximately $1,968,000 and $2,501,000,
respectively, a decrease of approximately $533,000 or 21.3%. This decrease in
sales was offset by an increase in sales to certain Concord Americas customers
on an F.O.B. Hong Kong basis from Concord HK. During the quarters ended October
3, 1998 and September 30, 1997, Concord Americas customers purchased
approximately $3,803,000 and $2,632,000, respectively, from Concord HK, an
increase of approximately $1,171,000 or 44.5%. If this increase were added to
the quarters ended October 3, 1998 American sales, sales of traditional cameras
to Concord Americas customers would have increased by 12.4%.
Consolidated sales of Concord Camera Europe for the quarters ended
October 3, 1998 and September 30, 1997, were approximately $1,896,000 and
$1,469,000, respectively, an increase of approximately $427,000 or 29.1%. In
addition, certain European customers increased merchandise purchases on an
F.O.B. Hong Kong basis from Concord HK. During the quarters ended October 3,
1998 and September 30, 1997, European customers purchased approximately
$2,440,000 and $1,881,000, respectively, from Concord HK, an increase of
approximately $559,000 or 29.7%. If this increase were added to the sales for
the quarters ended October 3, 1998, European sales to European customers would
have increased by 29.4%.
Gross Profit
Gross profit, expressed as a percentage of sales, increased to 27.2%
for the quarter ended October 3, 1998 from 26.7% for the quarter ended September
30, 1997. This increase was primarily the result of more favorable absorption of
manufacturing overhead and labor utilization resulting from the increased sales
and manufacturing volume and efficiencies. At the same time, product development
costs associated with new products increased from $764,000 for the quarter ended
September 30, 1997 to $1,244,000 for the quarter ended October 3, 1998.
Expenses
As a percentage of sales, operating expenses consisting of selling, general
and administrative and financial expenses decreased to 18.2% in the quarter
ended October 3, 1998 from 22.6% in the quarter ended September 30, 1997.
Operating
6
<PAGE>
expenses increased to $5,655,000 in the quarter ended October 3, 1998 from
$4,481,000 in the quarter ended September 30, 1997, an increase of $1,174,000 or
26.2%.
Selling expenses increased to $2,393,000 or 7.7% of net sales in the
quarter ended October 3, 1998 from $1,696,000 or 8.6% of net sales in the
quarter ended September 30, 1997. The increase was primarily attributable to
Company's increased sales volume and increases in royalty expenses and
promotional allowances partially offset by the benefits from the consolidation
of warehouse facilities undertaken by the Company in Fiscal 1996.
General and Administrative expenses increased to $2,456,000 or 7.9% of
net sales in the quarter ended October 3, 1998 from $2,385,000 or 12.0% of net
sales in the quarter ended September 30, 1997.
Financial expenses increased to $805,000 or 2.6% of net sales for the
quarter ended October 3, 1998 from $398,000 or 2.0% of net sales in the quarter
ended September 30, 1997. Such increase was primarily a result of an increase in
average debt outstanding during the quarter ended October 3, 1998.
Litigation and settlement costs in the quarters ended October 3, 1998
and September 30, 1997 were approximately $15,000 and $42,000, respectively, a
decrease of approximately $27,000. The costs were incurred in connection with
non-operating matters, primarily the arbitration against Jack C. Benun, the
Company's former chairman & ceo.
Other (Income) Expense, Net
Other expense, net was approximately $86,000 in the quarter end October
3, 1998 versus $70,000 of other income, net in the quarter ended September 30,
1997. Other (income) expense, net includes directors' fees, certain public
relations costs, foreign exchange gains and losses and interest income.
Income Taxes
The Company's provision for income taxes for the quarter ended October
3, 1998 is primarily related to the earnings of the Company's Far East and
domestic operations, net of benefits relating to operating loss carryforwards
and overpayments/refunds of the Company's other subsidiaries.
Net Income
As a result of the matters described above, the Company had net income
of approximately $ $2,458,000 or $0.21 per diluted share in the quarter ended
October 3, 1998 as compared to net income of $771,000 or $.07 per diluted share
in the quarter ended September 30, 1997. The Company achieved its profit plan
for the first quarter and is in line to achieve its previously announced
projected profit of $7 to $8 million or $0.58 to $0.66 per diluted share for the
current fiscal year.
Liquidity and Capital Resources
At October 3, 1998, the Company had working capital of $33,114,000 as
compared to $20,813,000 at June 30, 1998. Cash flow provided by operating
activities was approximately $6,484,000 and $1,243,000 for the quarters ended
October 3, 1998 and September 30, 1997, respectively. Capital expenditures for
the quarters ended October 3, 1998 and September 30, 1997 were approximately
$1,978,000 and $851,000, respectively. The Company's principal funding
requirement has been,
7
<PAGE>
and is expected to continue to be, the financing of accounts receivable and
inventory. Additionally, the combined United States operation is dependent upon
funding received from the foreign operations.
Senior Notes Payable. On July 30, 1998, the Company consummated a private
placement of $15 million of senior notes. The notes bear interest at 11%, and
the maturity date is July 15, 2005. Interest payments are due quarterly. The
agreement contains certain restrictive covenants relating to, among other
things, incurrence of additional indebtedness and dividend and other payment
restrictions affecting subsidiaries.
Mortgage Payable. On April 9, 1998, the Company entered into a 15 month
$2,100,000 mortgage loan agreement that is secured by the Company-owned
manufacturing facilities located in Baoan County, Shenzhen Municipal, PRC and
bears interest at 12.986%. The mortgage loan agreement requires monthly payments
of interest only and a balloon payment of $2,100,000 on July 9, 1999.
Non-Notification Factoring with Recourse Facility. During the last quarter of
Fiscal 1998, Concord HK consummated a $10,000,000 Non-Notification Factoring
with Recourse Facility (the "Factoring Facility") that is guaranteed by the
Company, is secured by certain accounts receivables of the Company's Hong Kong
operations and bears interest at 1.5% above the prime lending rate. Availability
is subject to advance formulas based on eligible accounts receivable with no
minimum borrowings. The Company utilized the Factoring Facility during the
fourth quarter of Fiscal 1998 to replace a one-year $1,500,000 revolving credit
facility with a U.S. bank. At October 3, 1998, approximately $5,944,000 was
outstanding and classified as short-term debt.
U.S. Credit Facility. The Company has a $4,500,000 credit facility (the "U.S.
Credit Facility") which expires on May 31, 1999 that is secured by accounts
receivable, inventory and other related assets of the Company's United States
operations and bears interest at 1.5% above the prime lending rate, which was
8.5% at October 3, 1998. Availability is subject to advance formulas based on
eligible inventory and accounts receivable with interest calculated on borrowing
of $1,500,000. At October 3, 1998, approximately $1,502,000 was outstanding and
classified as short-term debt under the U.S. Credit Facility.
Hong Kong Credit Facilities. Concord HK has credit facilities (the "HK
Facilities") that provide Concord HK with up to $6,900,000 of financing as
follows: letters of credit and standby letters of credit of up to $2,825,000,
overdraft and packing loans of up to $3,600,000 and an installment loan of
$475,000. The installment loan was utilized in part to repay the outstanding
mortgage obligation on the Hong Kong office property. As of October 3, 1998,
approximately $2,014,000 was utilized under the HK Facilities. Approximately
$1,406,000 of the total $2,014,000 utilized was in the form of trade finance,
including but not limited to import letters of credit. The HK Facilities, which
are payable on demand, bear interest at 2% above the prime lending rate for
letters of credit and 2.25% above the prime lending rate for overdraft and
packing loans. At October 3, 1998, the prime lending rate was 10%. In connection
with the HK Facilities, Concord HK has placed a $1,288,000 time deposit with the
lender which is included in prepaid and other current assets at October 3, 1998
and such deposit is pledged as collateral for the HK Facilities. In addition,
all amounts outstanding under the HK Facilities are guaranteed by Concord.
Canadian Working Capital Facility. On November 25, 1996, the Company obtained a
$990,000 working capital facility (the "Canadian Facility") with a Canadian bank
which is secured by accounts receivable, inventory and other related assets of
the Company's Canadian operations and bears interest at 1% above the prime
lending rate, which was 7.5% at October 3, 1998. Availability under the Canadian
Facility is subject to advance formulas based on eligible accounts receivable
and seasonal inventory eligibility with no minimum borrowings and is subject to
monthly covenant requirements. At October 3, 1998, approximately $211,000 was
outstanding and classified as short-term debt.
8
<PAGE>
Other Arrangements and Future Cash Commitments. Management believes that
anticipated cash flow from operations together with financing from the Senior
Notes Payable, the Factoring Facility, the U.S. Credit Facility, the HK
Facilities, and the Canadian Facility , or replacement facilities, will be
sufficient to fund its operating cash needs for the foreseeable future.
Impact of Year 2000
The Year 2000 issue is the result of computer-controlled systems using two
digits rather than four to define the applicable year. For example, computer
programs that have time-sensitive software may recognize a date ending in "00"
as the year 1900 rather than the year 2000. This could result in system failure
or miscalculations causing disruptions of operations including, among other
things, a temporary inability to process transactions, send invoices, or engage
in similar normal business activities.
Based on an assessment, the Company determined that it will be required to
modify or replace portions of its software and hardware so that its systems will
function properly with respect to dates in the year 2000 and thereafter. The
Company presently believes that with modifications to existing software and
conversions to new software and hardware, the Year 2000 issue will not pose
significant operational problems for its systems. However, if such modifications
and conversions are not made, or are not completed in timely fashion, the Year
2000 problems could have a material impact on the operations of the Company.
The Company is continuing to contact all of its significant suppliers and large
customers to determine the extent to which the Company's interface systems are
vulnerable to those third parties' failure to remediate their own Year 2000
issues. The Company's total Year 2000 project cost and estimates to complete
include the estimated costs and time associated with the impact of third party
Year 2000 issues. Based on presently available information, the Company's total
Year 2000 project cost is approximately $100,000. However, there can be no
guarantee that the systems of other companies on which the Company's systems
rely will be converted on a timely basis and will not have a material adverse
effect on the Company's systems.
The Company is actively engaged in utilizing both internal and external
resources to reprogram, or replace, and test its software and hardware for Year
2000 compliance. The Company's objective is to complete the Year 2000 project
not later than July 1, 1999, which is prior to any anticipated impact on its
operating systems. The Fiscal 1999 cost of the Year 2000 project is not expected
to have a material effect on the results of operations.
The costs of the project and the date which the Company has established to
complete the Year 2000 modifications are based on management's best estimates,
which were derived utilizing numerous assumptions of future events, including
the continued availability of certain resources, third party modification plans
and other factors. However, there can be no guarantee that these estimates will
be achieved and actual results could differ materially from those anticipated.
Specific factors that might cause such material differences include, but are not
limited to, the availability and cost of personnel trained in this area, the
ability to locate and correct all relevant computer codes, and similar
uncertainties.
Forward-Looking Statements
The statements contained in this report that are not historical facts are
"forward-looking statements" (as such term is defined in the Private Securities
Litigation Reform Act of 1995) which can be identified by the use of
forward-looking terminology such as; "estimates," "projects," "anticipates,"
"expects," "intends," "believes," or the negative thereof or other variations
thereon or comparable terminology, or by discussions of strategy that involve
risks and uncertainties. The
9
<PAGE>
Company's actual results could differ materially from those anticipated in such
forward-looking statements. Management wishes to caution the reader that these
forward-looking statements, such as statements regarding development of the
Company's business, the Company's anticipated capital expenditures and other
statements contained in this report regarding matters that are not historical
facts are only estimates or predictions. No assurance can be given that future
results will be achieved; actual events for results may differ materially as a
result of risks facing the Company or actual results differing from the
assumptions underlying such statements. In particular, expected revenues could
be adversely affected by production difficulties or economic conditions
adversely affecting the market for the Company's products. To obtain the results
expected from the introduction of the Company's new products will require timely
completion of development, successful ramp-up of full-scale production on a
timely basis and customer and consumer acceptance of those products. In
addition, the Company's OEM agreements require an ability to meet high quality
and performance standards, successful implementation of production at greatly
increased volumes and an ability to sustain production at greatly increased
volumes as to all of which there can be no assurance. There also can be no
assurance that products under development will be successfully developed or that
once developed such products will be commercially successful.
Item 3. QUANTATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company operates on a worldwide basis and its results may be adversely or
positively affected by fluctuations of various foreign currencies against the
U.S. Dollar, specifically, the Canadian Dollar, German Mark, British Pound
Sterling, French Francs, and Japanese Yen. Each of the Company's foreign
subsidiaries purchases its inventories in U.S. Dollars and sells them in local
currency, thereby creating an exposure to fluctuations in foreign currency
exchange rates. Certain components needed to manufacture cameras are purchased
in Japanese Yen. The impact of foreign exchange transactions is reflected in the
profit and loss statement. The Company's hedging activities are immaterial and
as of October 3, 1998, there were no forward-exchange contracts outstanding. The
Company continues to analyze the benefits and costs associated with hedging
against foreign currency fluctuations.
PART 2. OTHER INFORMATION
a. Item 6. Reports on Form 8-K
None
b. Exhibits
Exhibit No. Exhibit
27 Financial Data Schedule
10
<PAGE>
S I G N A T U R E
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.
CONCORD CAMERA CORP.
(Registrant)
BY: /s/Harlan I. Press
(Signature)
Harlan I. Press
Corporate Controller and Assistant Secretary
DULY AUTHORIZED AND PRINCIPAL ACCOUNTING
OFFICER
DATE: November 12, 1998
11
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Concord
Camera Corp.'s consolidated financial statements as of October 3, 1998 and the
results of operations for the quarter ended October 3, 1998 and is qualified in
its entiriety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUL-03-1999
<PERIOD-END> OCT-3-1998
<CASH> $23,774,815
<SECURITIES> 0
<RECEIVABLES> 16,536,187
<ALLOWANCES> 551,730
<INVENTORY> 23,508,537
<CURRENT-ASSETS> 67,621,411
<PP&E> 33,210,140
<DEPRECIATION> (16,054,181)
<TOTAL-ASSETS> 89,831,154
<CURRENT-LIABILITIES> 34,507,894
<BONDS> 15,201,197
0
0
<COMMON> 40,094,559
<OTHER-SE> (2,292,285)
<TOTAL-LIABILITY-AND-EQUITY> 89,831,155
<SALES> 31,023,827
<TOTAL-REVENUES> 31,023,827
<CGS> 22,580,881
<TOTAL-COSTS> 5,669,463
<OTHER-EXPENSES> 86,095
<LOSS-PROVISION> 25,925
<INTEREST-EXPENSE> 702,913
<INCOME-PRETAX> 2,687,388
<INCOME-TAX> 229,000
<INCOME-CONTINUING> 2,458,388
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,458,388
<EPS-PRIMARY> $0.22
<EPS-DILUTED> $0.21
</TABLE>
