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 the Quarter Ended September 30, 1997 Commission File Number 1-10091
HUNTWAY PARTNERS, L.P.
(Exact Name of Registrant as Specified in its Charter)
Delaware 36-3601653
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
25129 The Old Road, Suite 322
Newhall, California
(Address of Principal Executive Offices)
91381
(Zip Code)
Registrant's Telephone Number Including Area Code: (805) 286-1582
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(b) 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 .
QUARTERLY REPORT ON FORM 10-Q
HUNTWAY PARTNERS, L.P.
For the Quarter Ended September 30, 1997
INDEX
Part I. Financial Information Page
Condensed Consolidated Balance Sheets as
of September 30, 1997 and December 31, 1996 3
Condensed Consolidated Statements of
Operations for the Three Months and Nine
Months Ended September 30, 1997 and 1996 4
Condensed Consolidated Statement of
Partners' Capital for the Nine Months
Ended September 30, 1997 4
Condensed Consolidated Statements of Cash
Flows for the Nine Months
Ended September 30, 1997 and 1996 5
Notes to Condensed Consolidated
Financial Statements 6
Management's Discussion and Analysis
of Results of Operations and
Financial Condition 7
Part II. Other Information 12
<TABLE>
HUNTWAY PARTNERS, L.P.
CONDENSED CONSOLIDATED BALANCE SHEETS
<CAPTION>
September 30, December 31,
1997 1996
(Unaudited) (Audited)
<S> <C> <C>
CURRENT ASSETS:
Cash $4,818,000 $5,287,000
Accounts Receivable 6,749,000 5,148,000
Inventories 6,094,000 3,399,000
Prepaid Expenses 649,000 640,000
Total Current Assets 18,310,000 14,474,000
PROPERTY - Net 59,219,000 59,339,000
OTHER ASSETS 524,000 319,000
GOODWILL 1,716,000 1,759,000
TOTAL ASSETS $79,769,000 $75,891,000
CURRENT LIABILITIES:
Accounts Payable $8,188,000 $6,913,000
Current Portion of
Long-Term Obligations 377,000 100,000
Accrued Interest 1,451,000 316,000
Other Accrued Liabilities 1,639,000 1,347,000
Total Current Liabilities 11,655,000 8,676,000
LONG-TERM OBLIGATIONS 27,797,000 28,174,000
PARTNERS' CAPITAL:
General Partners 403,000 390,000
Limited Partners 39,914,000 38,651,000
Total Partners' Capital 40,317,000 39,041,000
TOTAL LIABILITIES AND
PARTNERS' CAPITAL $79,769,000 $75,891,000
</TABLE>
<TABLE>
HUNTWAY PARTNERS, L.P.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
<CAPTION>
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
September 30, September 30,September 30, September 30,
1997 1996 1997 1996
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
SALES $28,505,000 $30,829,000 $71,239,000 $74,137,000
COSTS AND EXPENSES:
Material and Processing
Costs 25,026,000 26,636,000 62,295,000 65,471,000
Selling and
Administration Expenses 1,238,000 906,000 3,407,000 2,696,000
Interest Expense 895,000 1,310,000 2,664,000 3,833,000
Depreciation and
Amortization 654,000 620,000 1,776,000 1,666,000
Total Costs and
Expenses 27,813,000 29,472,000 70,142,000 73,666,000
NET INCOME $692,000 $1,357,000 $1,097,000 $471,000
NET INCOME PER UNIT $0.02 $0.12 $0.04 $0.04
LIMITED PARTNER
EQUIVALENT
UNITS OUTSTANDING 28,175,266 11,673,000 28,114,596 11,673,000
</TABLE>
<TABLE>
HUNTWAY PARTNERS, L.P.
CONDENSED CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL
<CAPTION>
General Limited
Partners Partners Totals
<S> <C> <C> <C>
Balance at January 1, 1997 $390,000 $38,651,000 $39,041,000
Earned Portion of
Option Awards 2,000 177,000 179,000
Net Income for the Nine Months
Ended September 30, 1997 11,000 1,086,000 1,097,000
Balance at September 30, 1997 $403,000 $39,914,000 $40,317,000
</TABLE>
<TABLE>
HUNTWAY PARTNERS, L.P.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
<CAPTION>
Nine Months Nine Months
Ended Ended
September 30, September 30,
1997 1996
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net Income $1,097,000 $471,000
Adjustments to Reconcile
Net Income to Net Cash
Provided by Operating
Activities:
Depreciation and Amortization 1,776,000 1,666,000
Changes in Operating Assets
and Liabilities:
Increase in Accounts Receivable (1,601,000) (3,578,000)
Increase in Inventories (2,658,000) (924,000)
Increase in Prepaid Expenses (9,000) (110,000)
Increase in Accounts Payable 1,275,000 2,232,000
Increase in Accrued Liabilities 1,427,000 3,456,000
NET CASH PROVIDED BY
OPERATING ACTIVITIES 1,307,000 3,213,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to Property (1,407,000) (2,293,000)
Additions to Other Assets (269,000) (743,000)
NET CASH USED BY
INVESTING ACTIVITIES (1,676,000) (3,036,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of Long-term
Obligations (100,000) (100,000)
NET CASH USED BY
FINANCING ACTIVITIES (100,000) (100,000)
NET INCREASE (DECREASE) IN CASH (469,000) 77,000
CASH BALANCE -
BEGINNING OF PERIOD 5,287,000 4,304,000
CASH BALANCE - END OF PERIOD $4,818,000 $4,381,000
INTEREST PAID IN CASH
DURING THE PERIOD $1,529,000 $1,162,000
</TABLE>
HUNTWAY PARTNERS, L.P. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The accompanying condensed consolidated financial statements of Huntway
Partners, L.P. and subsidiary as of September 30, 1997 and for the three
and nine month periods ended September 30, 1997 and 1996 are unaudited
but, in the opinion of management, reflect all adjustments
(consisting only of normal recurring adjustments) necessary for a fair
presentation of such financial statements in accordance with generally
accepted accounting principles. The results of operations for an
interim period are not necessarily indicative of results for a full
year. The condensed consolidated financial statements should be
read in conjunction with the consolidated financial statements and
notes thereto contained in the Partnerships annual report for the
year ended December 31, 1996.
The Financial Accounting Standards Board has issued Statement of Financial
Accounting Standards 128, Earnings per Share (effective for annual and
interim periods ending after December 15, 1997), Statement of Financial
Accounting Standards 129, Disclosure of Information about Capital
Structure (effective for periods ending after December 15, 1997),
Statement of Financial Accounting Standards 130, Reporting
Comphrehensive Income (effective for fiscal years ending after
December 15,1997), and Statement of Financial Accounting Standards
131, Disclosures about Segments of an Enterprise and Related
Information, (effective for fiscal years ending after December 15, 1997).
The Partnership does not believe that adoption of these standards have
or will have an effect on the results of operations.
Crude oil and finished product inventories are stated at cost determined
by the last-in, first-out method, which is not in excess of market.
For the three months ended September 30, 1997 and 1996, the
effect of LIFO was to decrease net income by $828,000 and $100,000,
respectively. For the nine months ended September 30, 1997 the effect
of LIFO was to increase net income by $1,091,000. The effect on the
comparable period of 1996 was to decrease net income by $590,000.
Inventories at September 30, 1997 and December 31, 1996 were as follows:
<TABLE>
<CAPTION>
1997 1996
<S> <C> <C>
Finished Products $3,512,000 $2,533,000
Crude Oil and Supplies 3,683,000 3,058,000
7,195,000 5,591,000
Less LIFO Reserve (1,101,000) (2,192,000)
Total $6,094,000 $3,399,000
</TABLE>
2. CONTINGENCIES
The Partnership is party to a number of lawsuits and other proceedings
arising out of the ordinary course of its business. While the results
of such lawsuits and proceedings cannot be predicted with
certainty, management does not expect that the ultimate liability,
if any, will have a material adverse effect on the consolidated
financial position or results of operations of the Partnership.
The Partnership is not aware of any costs or loss contingencies relating
to environmental laws and regulations that have not been recorded in its
financial statements. However, future environmental costs
cannot be reasonably estimated due to unknown factors. Although
environmental costs may have a significant impact on results of
operations for any single period, the partnership believes that
such costs will not have a material adverse effect on the Partnerships
financial position.
3. FINANCING - SUBSEQUENT EVENT
On October 31, 1997 the Partnership issued $21,750,000 in 9.4% Senior
Subordinated Secured Convertible Notes (the convertible debt) due 2007,
retired $11,707,000 in 12% senior debt, and redeemed 10,758,696 units
or 42% of its total units outstanding. The transaction also reduced
the effective interest rate on the Partnerships $8,600,000 Industrial
Development Bond from 12% to approximately 6% and provided the
Partnership with $2,500,000 in additional working capital. The
Partnership also extended through 2005 its letter of credit arrangement
with its existing bank to continue to collateralize its outstanding
Industrial Development Bond.
The new debt is convertible into equity at $1.50 per unit (subject to
adjustment) at any time after January 15, 1998. The Partnership can
force conversion after October 15, 2000 assuming certain trading
criteria is met. This transaction immediately reduces total units
outstanding to 14,583,958 from 25,342,654. On an as converted basis,
total units will increase to 29,083,958.
As a result of the transaction, the Partnerships long-term obligations
increased from $28,174,000 to $38,217,000 although interest expense
will remain essentially unchanged due to the lower interest rate on
the new convertible debt and the buydown of the approximate 6% interest
spread on the Industrial Development Bond. Accordingly, had this
transaction occurred at the beginning of 1997 net income would
not have been materially impacted but earnings per unit would have
increased to $0.04 and $0.06 for the three and nine month periods
ended September 30, 1997 respectively.
Minimum required cash principal payments, assuming the newly issued
convertible debt does not convert, both before and after the
transactions described above, are as follows:
<TABLE>
<CAPTION>
Before After
<S> <C> <C>
1997 $ - $ -
1998 3,232,000 694,000
1999 3,232,000 694,000
2000 3,232,000 694,000
2001 3,232,000 1,694,000
2002 3,232,000 1,694,000
Thereafter 12,014,000 32,747,000
Total $ 28,174,000 $ 38,217,000
</TABLE>
Upon the conversion of some or all of the convertible debt into
Partnership units, the amount of minimum required cash principal
payments subsequent to 2002 will be reduced by the amount of the debt
so converted.
The agreements also provide for contingent principal payments in 1999
and 2000 of up to $1,000,000 annually on a formula of 66.67% of excess
cash flow as defined.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
The following discussion should be read in conjunction with the
financial statements included elsewhere in this report.
Results of Operations
Huntway is principally engaged in the processing and sale of liquid
asphalt products, as well as the production of other refined petroleum
feedstocks and products such as gas oil, naphtha, kerosene
distillate and heavy (bunker) fuel.
Huntway's ability to generate income depends principally upon the
margins between the prices for its refined petroleum products and
the cost of crude oil, as well as upon demand for liquid asphalt,
which affects both price and sales volume.
Historically, refined petroleum product prices (including prices
for liquid asphalt, although to a lesser degree than Huntways other
refined petroleum products) generally fluctuate with crude oil price
levels. Accordingly, there has not been a relationship between total
revenues and income due to the volatile commodity character of crude
oil prices.
Accordingly, income before interest, depreciation and amortization
provides the most meaningful basis for comparing historical results
of operations discussed below.
A number of uncertainties exist that may affect Huntways future
operations. The Partnerships primary product is liquid asphalt
and some of Huntways competitors produce liquid asphalt as a by-
product and are of much greater size and have much larger financial
resources than the Partnership.
Accordingly, the Partnership has in the past, and may have in the
future, difficulty raising prices in the face of increasing crude
costs. Additionally, crude costs could rise to such an extent
that Huntway may not have sufficient letter of credit availability
to purchase all the crude it needs to sustain operations to
capacity, especially during the summer season. If this occurred,
Huntway would be forced to reduce crude purchases, which could
adversely impact results of operations.
Three Months Ended September 30, 1997 Compared with the Three Months
Ended September 30, 1996
Third quarter 1997 net income was $692,000, or $.02 per unit, versus
1996 third quarter net income of $1,357,000, or $.12 cents per unit.
The decline in results between quarters of $665,000 is principally
attributable to significantly lower light product margins.
Margins on Huntway's light-end products rose in the third quarter
of 1997 commensurate with advancing wholesale gasoline and diesel
prices in California but did not reach the levels experienced in
the third quarter of 1996 when multiple refinery outages on the
west coast created shortages and drove margins to an unusually high
number. In contrast, asphalt margins improved as industry wide
price increases early in the year generally held and crude costs
have remained relatively stable throughout 1997.
The following table sets forth the effects of changes in price and
volume on sales and material and processing costs on the quarter
ended September 30, 1997 as compared to the quarter ended
September 30, 1996:
<TABLE>
<CAPTION>
Material & Barrels
Sales Processing Net Sold
<S> <C> <C> <C> <C>
Three Months ended
September 30, 1996 $30,829,000 $26,636,000 $4,193,000 1,407,000
Effect of changes
in price (1,075,000) (531,000) (544,000)
Effect of changes
in volume (1,249,000) (1,079,000) (170,000) (57,000)
Three Months Ended
September 30, 1997 $28,505,000 $25,026,000 $3,479,000 1,350,000
</TABLE>
The net margin between sales and material and processing costs fell
from $2.98 per barrel for the third quarter of 1996 to $2.58 per
barrel for the third quarter of 1997. This decline in net margin of
$714,000 is primarily attributable to the Partnership's lower light
product margins in the quarter as compared to the unusually high
light product margins experienced in third quarter of 1996. Over all,
light product prices fell by 8% compared to the third quarter of 1996
when multiple refinery outages on the west coast created shortages
and drove prices upwards. Asphalt pricing was consistent with the
comparable quarter of 1996. Over all, sales prices averaged $21.13
per barrel for the third quarter of 1997 as compared to $21.91 per
barrel for the comparable quarter of 1996, a decline of $0.78, or 4%.
This decline in pricing was partially offset by crude costs, which
fell 3% in response to generally higher world wide production levels
as compared to the comparable quarter of 1996. Over all, material and
processing costs averaged $18.54 and $18.93 for the quarters ended
September 30, 1997 and 1996, respectively, a decline of $0.39, or 2%.
Selling, general and administrative costs increased by a $332,000
as compared to the third quarter of 1996 primarily as a result of
increased payroll expense and the timing of incentive plan
accruals.
Interest expense was reduced in the quarter by $415,000 due to
reduced debt levels. In December of 1996, the partnership completed
the restructuring of its indebtedness with its senior and junior
lenders. This resulted in a reduction in long-term debt and
related accrued interest of $71,748,000 and the issuance of
13,786,000 new partnership units in December of 1996.
Nine Months Ended September 30, 1997 Compared with the Nine Months
Ended September 30, 1996
Nine month 1997 net income was $1,097,000, or $.04 per unit, versus
1996 nine months net income of $471,000, or $.04 cents per unit.
The improvement in results between periods of $626,000 is
attributable to reduced interest expense and higher product
margins partially offset by increased selling, general &
administrative expenses. Margins on Huntway's light-end products
fell between periods due to the poor light product margins
experienced in the second quarter as a result of maximum
refinery runs and increasing inventory levels. Asphalt margins
improved as industry wide price increases early in the period
generally held while crude prices fell. Asphalt margins also
benefited as improved operating results in the first quarter,
allowed the Partnership to forego the low-margin fuel oil sales
that it made in 1996 for liquidity purposes.
The following table sets forth the effects of changes in price
and volume on sales and material and processing costs on the
period ended September 30, 1997 as compared to the period ended
September 30, 1996:
<TABLE>
<CAPTION>
Material & Barrels
Sales Processing Net Sold
<S> <C> <C> <C> <C>
Nine Months ended
September 30, 1996 $74,137,000 $65,471,000 $8,666,000 3,451,000
Effect of changes
in price 67,000 (558,000) 625,000
Effect of changes
in volume (2,965,000) (2,618,000) (347,000) (138,000)
Nine Months Ended
September 30, 1997 $71,239,000 $62,295,000 $8,944,000 3,313,000
</TABLE>
The net margin between sales and material and processing costs
improved from $2.51 per barrel for the nine months of 1996 to
$2.70 per barrel for the nine months of 1997. This improvement
in net margin of $278,000 is primarily attributable to the
Partnership's overall improved margin in the period partially
offset by 4% lower volume due to a late start on the paving
portion of a number of large projects. Asphalt prices improved
by 6% compared to the first nine months of 1996 as price
increases put into effect early in the period (after crude price
increases throughout 1996) generally held.
Light product prices, on the other hand, declined by 6% due to
an oversupply of gasoline and diesel fuel in the second quarter.
Over all, sales prices were flat, averaging $21.50 per barrel for
the nine months of 1997 as compared to $21.48 per barrel for the
comparable period of 1996. Crude costs were also relatively stable
between periods declining by 1%. Over all, material and processing
costs averaged $18.80 and $18.97 for the periods ended
September 30, 1997 and 1996, respectively, a decrease of
$0.17 or 1%.
Selling, general and administrative costs increased by $711,000 as
compared to the nine months of 1996 primarily as a result of the timing
of incentive plan accruals and an increase in bad debt
expense as the prior year amount included the recovery of a previously
written off receivable
Interest expense was reduced in the period by $1,169,000 due to reduced
debt levels. In December of 1996, the partnership completed the
restructuring of its indebtedness with its senior and junior lenders.
Due to the volatility inherent in the Partnership's business, past
financial performance should not be considered to be a reliable
indicator of future performance and investors should not use historical
trends to anticipate results or trends in future periods.
Capital Resources And Liquidity
The primary factors that affect the Partnership's cash requirements
and liquidity position are fluctuations in the selling prices of
refined products caused by local market supply and demand factors,
including public and private demand for road construction and
improvement as well as demand for diesel fuel and gasoline and
fluctuations in the cost of crude oil which is impacted by a myriad of
market factors, both foreign and domestic. In addition, capital
expenditure requirements, including costs to maintain compliance
with environmental regulations as well as debt service requirements,
also impact the Partnerships cash needs.
In the first nine months of 1997, operating activities provided
$1,307,000 in cash. The periods net income of $1,097,000 plus
depreciation and amortization of $1,776,000 provided
$2,873,000 in cash. An increase in inventory of $2,658,000 was
partially financed by a similar increase in accounts payable of
$1,275,000. Accrued liabilities increased by $1,427,000 due to the
timing of interest payments, as well as increases in accruals for
property taxes and incentive compensation. Prepaid expenses
consumed $9,000 while accounts receivable experienced a seasonal
increase of $1,601,000.
Investing activities consumed $1,676,000 during the first nine
months of 1997 primarily for refinery equipment including
enhancements to the new polymer facilities and tankage for
our Benicia refinery and improved pipeline connections in Wilmington.
Financing activities consumed $100,000 in the first nine months of
1997 pursuant to a 1993 settlement with the State of Arizona.
In comparison, during the first nine months of 1996, operating
activities provided $3,213,000 in cash. The periods net income
of $471,000 plus depreciation and amortization of $1,666,000
provided $2,137,000 in cash. Seasonal increases in accounts
receivable and inventory of $4,502,000 were partially financed
by a similar seasonal increase in accounts payable of
$2,232,000. Accrued liabilities increased by $3,456,000 as interest
continued to accrue under the then existing debt agreement until
the 1996 debt restructuring was completed in December of 1996.
Prepaid expenses consumed $110,000 primarily due to turnaround costs.
Investing activities consumed $3,036,000 during the first nine months
of 1996 primarily for refinery equipment including new modified
asphalt facilities and tankage for our Benicia refinery.
Financing activities consumed $100,000 in the first nine months of
1996 pursuant to a 1993 settlement with the State of Arizona.
On October 31, 1997 the Partnership issued $21,750,000 in 9.25%
Senior Subordinated Secured Convertible Notes (the convertible debt)
due 2007, retired $11,707,000 in 12% senior debt,
and redeemed 10,758,696 units or 42% of its total units outstanding.
The transaction also reduced the effective interest rate on the
Partnerships $8,600,000 Industrial Development Bond from 12% to
approximately 6% and provided the Partnership with $2,500,000
in additional working capital. The Partnership also extended
through 2005 its letter of credit arrangement with its existing bank to
continue to collateralize its outstanding Industrial Development Bond.
The new debt is convertible into equity at $1.50 per unit (subject to
adjustment) at any time after January 15, 1998. The Partnership can
force conversion after October 15, 2000 assuming certain
trading criteria is met. This transaction immediately reduces total
units outstanding to 14,583,958 from 25,342,654. On an as converted
basis, total units will increase to 29,083,958.
As a result of the transaction, the Partnerships long-term obligations
increased from $28,174,000 to $38,217,000 although interest expense
will remain essentially unchanged due to the lower interest rate on
the new convertible debt and the buydown of the approximate 6%
interest spread on the Industrial development Bond. Minimum required
principal payments are reduced by $2,538,000 in 1998 through 2000
and by $1,538,000 thereafter through 2004 (see Note 3 to Condensed
Consolidated Financial Statements included elsewhere herein).
The Partnership believes its current level of letter of credit
facilities are sufficient to guarantee requirements for crude oil
purchases, collateralization of other obligations and for hedging
activities at current crude price levels. However, due to the
volatility in the price of crude oil, there can be no
assurance that these facilities are adequate. If crude oil prices
were to increase, the Partnership may be required to reduce its
crude oil purchases, which would adversely impact profitability.
At September 30, 1997, the cash position of the Partnership
was $4,818,000. In the opinion of management, cash on hand,
together with anticipated future cash flows, will be sufficient
to meet Huntway's liquidity obligations for the next 12 months.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
The Partnership is party to a number of lawsuits and other
proceedings arising out of the ordinary course of its business.
While the results of such lawsuits and proceedings cannot be predicted
with certainty, management does not expect that the ultimate liability,
if any, will have a material adverse effect on the consolidated
financial position or results of operations of the Partnership other
than as previously reported.
Item 2. Changes in Securities
Not applicable.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
None
(b) Reports on Form 8-K
None
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, on November 14, 1997.
HUNTWAY PARTNERS, L.P.
(Registrant)
By:
Warren J. Nelson
Executive Vice President
and Chief Financial Officer
(Principal Accounting Officer)
- 1 -
- 19 -
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 4818000
<SECURITIES> 0
<RECEIVABLES> 6749000
<ALLOWANCES> 0
<INVENTORY> 6094000
<CURRENT-ASSETS> 18310000
<PP&E> 76491000
<DEPRECIATION> 17272000
<TOTAL-ASSETS> 79769000
<CURRENT-LIABILITIES> 11655000
<BONDS> 27797000
0
0
<COMMON> 39914000
<OTHER-SE> 403000
<TOTAL-LIABILITY-AND-EQUITY> 79769000
<SALES> 28505000
<TOTAL-REVENUES> 28505000
<CGS> 25680000
<TOTAL-COSTS> 25680000
<OTHER-EXPENSES> 1238000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 895000
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 692000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 692000
<EPS-PRIMARY> .02
<EPS-DILUTED> 0
</TABLE>
