UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended May 31, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____ to _____
Commission file number: 0-18926
INNOVO GROUP INC.
(Exact name of registrant as specified in its charter)
Delaware 11-2928178
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
1808 North Cherry Street, Knoxville, Tennessee 37917
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (423) 546-1110
Securities registered pursuant to Section 12 (b) of the Act:
NONE
Securities registered pursuant to Section 12 (g) of the Act:
Common Stock, $.10 par value per share
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 ___
As of July 6, 1999, 6,299,032 shares of common stock were
outstanding.
PART 1 : FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Condensed Consolidated Balance Sheets as of May 31, 1999 and
November 30, 1998
Condensed Consolidated Statements of Operations for the three
months ended May 31, 1999 and 1998
Condensed Consolidated Statements of Operations for the six
months ended May 31, 1999 and 1998
Condensed Consolidated Statements of Cash Flows for the six
months ended May 31, 1999 and 1998
Notes to Consolidated Financial Statements
INNOVO GROUP INC AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(000's except for share data)
5/31/99 11/30/98
------- --------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ -- $1,078
Accounts receivable net of allowance 689 708
Inventories 1,846 1,101
Prepaid expenses 318 267
------ ------
TOTAL CURRENT ASSETS 2,853 3,154
PROPERTY, PLANT and EQUIPMENT, net 3,842 4,037
OTHER ASSETS 127 41
------ ------
TOTAL ASSETS $6,822 $7,232
====== ======
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable $ 756 $ 914
Current maturities of long-term debt 87 270
Accounts payable 1,099 1,139
Accrued expenses 672 906
------ ------
TOTAL CURRENT LIABILITIES 2,614 3,229
LONG-TERM DEBT, less current maturities 2,196 2,234
OTHER -- 47
------ ------
TOTAL LIABILITIES 4,810 5,510
------ ------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Common stock, $0.10 par - shares
Authorized 15,000,000
Issued 6,299,032 in 1999,
5,387,113 in 1998 629 538
Additional paid-in capital 31,540 30,282
Promissory note - officer (703) (703)
Deficit (27,028) (25,969)
Treasury stock (2,426) (2,426)
------ ------
TOTAL STOCKHOLDERS' EQUITY 2,012 1,722
------ ------
TOTAL LIABILITIES and STOCKHOLDERS' EQUITY $6,822 $7,232
====== ======
See accompanying notes to consolidated condensed financial
statements
INNOVO GROUP INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(000's except per share data)
Three Months Ended
5/31/99 5/31/98
------- -------
NET SALES $1,026 $1,568
COST OF GOODS SOLD 576 1,006
------- -------
Gross profit 450 562
OPERATING EXPENSES
Selling, general and administrative 876 879
Depreciation and amortization 57 89
------- -------
933 968
LOSS FROM OPERATIONS (483) (406)
INTEREST EXPENSE (101) (101)
OTHER INCOME (EXPENSE), net 77 12
------- -------
LOSS BEFORE INCOME TAXES (507) (495)
INCOME TAXES (BENEFIT) -- --
LOSS FROM CONTINUING OPERATIONS (507) (495)
DISCONTINUED OPERATIONS
Results from Thimble Square operations 80 (85)
------- -------
NET LOSS $ (427) $ (580)
======= =======
LOSS PER SHARE:
Continuing operations $(0.09) $(0.11)
Discontinued operations $0.01 $(0.02)
Net loss $(0.07) $(0.13)
WEIGHTED AVERAGE SHARES OUTSTANDING 5,900 4,473
See accompanying notes to consolidated condensed
financial statements
INNOVO GROUP INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(000's except per share data)
Six Months Ended
5/31/99 5/31/98
------- -------
NET SALES $ 2,091 $ 3,528
COST OF GOODS SOLD 1,315 2,197
------- -------
Gross profit 776 1,331
OPERATING EXPENSES
Selling, general and administrative 1,676 1,797
Depreciation and amortization 120 183
------- -------
1,796 1,980
LOSS FROM OPERATIONS (1,020) (649)
INTEREST EXPENSE (192) (185)
OTHER INCOME (EXPENSE), net 114 23
------- -------
LOSS BEFORE INCOME TAXES (1,098) (811)
INCOME TAXES (BENEFIT) -- --
LOSS FROM CONTINUING OPERATIONS (1,098) (811)
DISCONTINUED OPERATIONS
Results from Thimble Square operations 39 (184)
------- -------
NET LOSS $(1,059) $ (995)
======= =======
LOSS PER SHARE:
Continuing operations $(0.19) $(0.18)
Discontinued operations $0.01 $(0.04)
Net loss $(0.19) $(0.22)
WEIGHTED AVERAGE SHARES OUTSTANDING 5,667 4,465
See accompanying notes to consolidated condensed
financial statements
INNOVO GROUP INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(000's except per share data)
Six Months Ended
5/31/99 5/31/98
------- -------
CASH FLOWS FROM OPERATING ACTIVITIES
Operating Activities of Discontinued
Operations $ (10) $ (204)
Operating Activities of Continuing
Operations (1,926) (958)
------- -------
Cash Used by Operating Activities (1,936) (1,162)
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES
Dispositions of Property, Plant & Equipment 176 --
Capital Expenditures (132) (52)
------- -------
Cash Provided (Used) by Investing Activities 44 (52)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES
Additions to Notes Payable -- 1,624
Repayments on Notes Payable (158) (885)
Repayments of Long -Term Debt (221) (51)
Additions to Long -Term Debt -- 650
Proceeds from Issuance of Common Stock 1,193 --
------- -------
Cash Provided by Financing Activities 814 1,338
------- -------
NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS (1,078) 124
CASH AND CASH EQUIVALENTS, at beginning of
period 1,078 469
------- -------
CASH AND CASH EQUIVALENTS, at end of period $ -- $ 593
======= =======
See accompanying notes to consolidated condensed financial statements
INNOVO GROUP INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Principles of consolidation
The accompanying condensed consolidated financial statements include the
accounts of Innovo Group Inc. ("Innovo Group") and its wholly owned
subsidiaries (collectively the "Company"). All significant intercompany
transactions and balances have been eliminated. The condensed consolidated
financial statements included herein have been prepared by the Company, without
audit, pursuant to the rules and regulations of the Securities and Exchange
Commission. Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to such rules and
regulations, although the Company believes that the disclosures are adequate to
make the information presented not misleading. These condensed consolidated
financial statements and the notes thereto should be read in conjunction with
the consolidated financial statements included in the Company's Annual Report on
Form 10-K for the year ended November 30, 1998
In the opinion of the management of the Company, the accompanying
unaudited condensed consolidated financial statements contain all necessary
adjustments to present fairly the financial position, the results of operations
and cash flows for the periods reported.
The results of operations for the periods noted in this document are not
necessarily indicative of the results expected for the full year.
NOTE 2 - INVENTORY
Inventories are stated at the lower of cost, as determined by the first-
in, first-out method, or market.
Inventories consisted of the following:
May 31, November 30,
1999 1998
---------- -----------
(000's) (000's)
Finished goods $ 753 $ 766
Work-in-process 18 18
Raw materials 1,111 353
---------- -----------
1,882 1,137
Less inventory reserve (36) (36)
---------- -----------
$1,846 $ 1,101
NOTE 3 - NOTES PAYABLE
Notes payable consisted of the following:
May 31, November 30,
1999 1998
------ ------
(000's) (000's)
Accounts receivable factoring facility $ 407 $ 439
Bank credit facility 349 349
Other -- 126
------ ------
$ 756 $ 914
====== ======
As of November 30, 1998, Thimble Square had a note payable to a bank
secured by the Pembroke, Georgia facility. This loan bore interest at the rate
of 2.75 points over the prime rate per annum. The loan balance of approximately
$126,000 was paid off when the Pembroke facility was sold in December 1998.
During February 1999, the Company obtained an extension on the credit
facility with First Independent Bank of Gallatin. This facility expires in
February 2000 and bears interest at the rate of 11.75% per annum.
NOTE 4 - LONG-TERM DEBT
Long-term debt consisted of the following:
May 31, November 30,
1999 1998
-------- ------------
(000's) (000's)
First mortgage loan $ 734 $ 754
Non-recourse first mortgage on
Florida property 714 727
Thimble Square SBA loan -- 179
Capital lease obligation 185 194
Bank promissory note secured by
receivable from an officer of
the Company 650 650
------ ------
Total long-term debt 2,283 2,504
Less current maturities (87) (270)
------ ------
$ 2,196 $ 2,234
The Thimble Square SBA loan was repaid in conjunction with the December
1998 sale of a manufacturing facility in Pembroke, Georgia.
NOTE 5 - STOCKHOLDERS' EQUITY
On December 14, 1998, the Company registered and issued 45,000 shares on
an S-8 filing as payment for legal consulting services. This stock was issued
for $91,564. In May, the Company issued 45,919 to a former officer of the
Company for future services valued at $64,074.
During February and May of 1999, the Company issued 200,000 shares to
certain officers of the company for consideration of $350,000.
During the second quarter of 1999, the Company sold 621,000 shares in
private placement transactions for consideration of $842,750. The stock was
sold at prices ranging from $1.00 per share to $1.65 per share.
NOTE 6 : SUBSEQUENT EVENTS
On June 22, 1999 the Company signed a short term promissory note to an
officer of the company for $192,000. This note bears interest at 8.5% and
expires on August 31, 1999. The proceeds from this note were used to purchase
goods from the Orient to fill orders that were currently placed with the
Company.
ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
Results of Operations
The following table sets forth the Statement of Operations for the three
months and six months ended May 31, 1999 and 1998.
Three Months Ended Six Months Ended
5/31/99 5/31/98 5/31/99 5/31/98
------- ------- ------- -------
Net Sales $1,026 $1,568 $2,091 $3,528
Costs of Goods Sold 576 1,006 1,315 2,197
------ ------ ------ ------
Gross Profit 450 562 776 1,331
Selling, General & Administrative 876 879 1,676 1,797
Depreciation & Amortization 57 89 120 183
------ ------ ------ ------
Income (Loss) from Operations (483) (406) (1,020) (649)
Interest Expense (101) (101) (192) (185)
Other Income (Expense) 77 12 114 23
------ ------ ------ ------
Income (Loss) Before Income Taxes (507) (495) (1,098) (811)
Income Taxes -- -- -- --
------ ------ ------ ------
Income (Loss) from Continuing
Operations (507) (495) (1,098) (811)
Discontinued Operations 80 (85) 39 (184)
------ ------ ------ ------
Net Loss $ (427) $ (580) $(1,059) $ (995)
====== ====== ====== ======
Comparison of the Three Months Ended May 31, 1999 to the Three Months Ended
May 31, 1998
Net Sales for the quarter ended May 31 decreased $542,000 or 34.6% from
$1,568,000 in 1998 to $1,026,000 in 1999. This decrease is primarily the result
of the timing of the Company's back to school orders for 1998 and 1999 and a
reduction in the sales for Nasco Products International, Inc. The Company began
shipments of the back to school orders for 1998 during May of 1998. These same
orders for 1999 were not shipped until June of 1999 due to delays in the goods
imported from the orient. The Nasco Products International, Inc. sales are
reduced from the previous year due to the Company's German distributor going out
of business. Nasco Products International, Inc has subsequently hired a new
German distributor.
The gross margin percentage increased eight percentage points from 35.8%
in 1998 to 43.9% in 1999 due primarily to improved purchasing of raw materials
for the Company's craft line and efficiencies generated in production. The
production efficiencies are in large part due to the movement of the production
facility to Knoxville, Tennessee.
Selling, General and Administrative costs remained largely unchanged from
the second quarter of 1998 to the second quarter of 1999.
Depreciation and Amortization expenses decreased $32,000 or 36.2% from the
second quarter of 1998 to the second quarter of 1999 due to the lack of
significant purchases of fixed assets during 1998 and 1999. Depreciation
expense should slowly decrease over time as the Company's equipment continues to
age.
Interest expense for the three months ended May 31, 1998 and 1999 was
essentially unchanged due to the lack of significant changes in financing from
1998 to 1999.
Other Income increased $65,000 from the three month period ended May 31,
1998 to the three month period ended May 31, 1999. This increase is primarily
the result of adjustments to state income and federal payroll taxes payable
during the second quarter of 1999. The accruals were adjusted to actual after
the returns were prepared.
Comparison of the Six Months Ended May 31, 1999 to the Six Months Ended May
31, 1998
Net Sales for the six months ended May 31 decreased $1,437,000 or 40.7%
from $3,528,000 in 1998 to $2,091,000 in 1999. This decrease is primarily the
result of a large order for Nasco Products International, Inc. during the first
quarter of 1998 that was not duplicated for 1999 and the timing of the back to
school shipments noted above. The Nasco Products International order was not
duplicated in 1999 due to a change in the Company's German distributor. The
previous distributor went out of business during 1999. Nasco Products
International, Inc has subsequently replaced the failed German distributor.
The gross margin percentage remained unchanged from the six months ended
May 31, 1998 to the six months ended May 31, 1999. Increases in the gross
margin due to efficiencies generated in the move of the production facility to
Knoxville, Tennessee and improved purchasing of raw materials for the craft line
were offset by a large close-out order that was placed during the first quarter
of 1999.
Selling, General and Administrative costs decreased $121,000 or 6.7% from
1998 to 1999 due to decreased royalties from the reduced sales to Nasco Products
International Inc. and cost reductions resulting from the move of the corporate
office and the Innovo, Inc. manufacturing facility to Knoxville, Tennessee
during December 1999.
Depreciation and Amortization expenses decreased $63,000 or 34.4% from the
six months ended May 31, 1998 to the six months ended May 31, 1999 due to the
lack of significant purchases of fixed assets during 1998 and 1999.
Depreciation expense should slowly decrease over time as the Company's equipment
continues to age.
Interest expense for the six months ended May 31, 1998 and 1999 was
essentially unchanged due to the lack of significant changes in financing from
1998 to 1999.
Other Income increased $91,000 from the six month period ended May 31,
1998 to the six month period ended May 31, 1999. This increase is primarily the
result of adjustments to state income and federal payroll taxes payable during
the second quarter of 1999. The accruals were adjusted to actual after the
returns were prepared.
Liquidity and Capital Resources
Innovo Group is a holding company and its principal assets are the common
stock of the operating subsidiaries. As a result, to satisfy its obligations
Innovo Group is dependent on cash obtained from the operating subsidiaries,
either as loans, repayments of loans made by Innovo Group to the subsidiary, or
distributions, or on the proceeds from the issuance of debt or equity securities
by Innovo Group.
Cash flows from operations were a negative $1,936,000 for the six months
ended May 31, 1999. The primary reasons were a net loss from continuing
operations of $1,098,000, a reduction in accrued expenses of $234,000 and an
increase in inventory of $745,000. The purchase of materials to satisfy the
back to school orders generated the increase in inventory. The materials
purchased will be shipped out during the third quarter of 1999.
The Company anticipates improved financial performance for the remainder
of fiscal year 1999 due to additional product lines and an improved marketing
effort.
The Company's principal credit facility for working capital is its
December 1997 factoring agreement with First American National Bank ("First
American"). Under this facility, First American advances up to 90% of approved
invoices. There is no established limit on the facility. First American
charges Innovo 1% for the first 15 days an invoice is outstanding and .05% per
day thereafter until paid, up to a maximum of 6%. The facility is secured by a
first position on accounts receivable and inventory and personal guarantees of
certain members of the Board of Directors and management. Prior to the
agreement with First American, the Company factored its receivables with another
lender. The facility can be terminated upon thirty days written notice by
either party.
In connection with the Company's discontinuance of its apparel
manufacturing operations it disposed of its former Thimble Square operations and
its assets. On December 10, 1998, the Company completed the sale of Thimble
Square's Pembroke facility from which it realized net proceeds of approximately
$176,000 which together with available cash was used to pay a $179,000 long-term
mortgage and a $126,000 short term note.
In December 1997, the Company had negotiated a line of credit at First
Independent Bank for $350,000 collateralized by equipment
and the guarantees of certain officers. A total of $349,000 had been
drawn under this facility which matured on December 30, 1998. In February 1999,
the bank renewed the facility extending its due date to February 27, 2000.
During the first six months of 1999, the Company received $1,192,750 for
the issuance of 821,000 shares of Common Stock. Of the shares sold, 200,000
shares were sold to officers of the Company. These shares totaled $350,000. In
addition to the 821,000 shares sold during the first six months, 90,919 shares
were issued for services rendered. These shares were valued at $155,638.
Based on the foregoing, the Company believes that working capital will be
sufficient to fund operations and required debt reductions during fiscal 1999.
The Company believes that any additional capital, to the extend needed, could
be obtained from the sale of equity securities or short-term working capital
loans. However, there can be no assurance that this or other financing will be
available if needed. The inability of the Company to be able to fulfill any
interim working capital requirements would force the Company to constrict its
operations.
Year 2000
The Company uses various types of technology in the operations of its
business. Some of this technology incorporates date identification functions;
however, some of these date identification functions were developed to use only
two digits to identity a year. These date identification functions, if not
corrected, could cause their relating technology to fail or create erroneous
results by or at the year 2000.
The Company has assessed the impact of Year 2000 issues on its information
and non-information technology systems. As part of this process, the Company
retained the services of an independent contractor with experience in analyzing
and addressing Year 2000 issues, from whom the Company purchased $10,000 of
computer equipment. The Company has also retained an additional independent
consultant to assist in the conversion of the Company's existing operating
system to a Year 2000 compliant platform. The other software used by the
Company, billing, inventory control, job costing and other accounting functions
is currently Year 2000 compliant.
The Company has also developed a plan to address the impact that Year 2000
issues of its vendors and customers may have on the Company's operations. The
Company is currently finalizing its evaluation of the materiality of its vendor
and customer relationships and has initiated communications with certain of its
significant vendors and customers to identity and minimize disruptions to the
Company's operations and to assist in resolving Year 2000 issues. The Company
expects to have substantially completed its evaluation during the third quarter
of fiscal 1999; however, there can be no assurances that the systems and
products of other companies on which the Company relies will not have an adverse
effect on the Company's business, operations or financial condition. In the
event that completion of the Company's Year 2000 evaluation of its vendors and
customers is not assured by the end of 1999, the Company intends to determine
appropriate contingency plans.
As of July 6, 1999 the Company had incurred approximately $20,000 in costs
related to the Year 2000 issue. The Company believes that additional costs
related to the Year 2000 issue, which are not currently expected to exceed
$20,000, will not be material to the Company's business, operations or financial
condition. All other efforts to date with respect to Year 2000 compliance issues
have involved the time of existing personnel with no identifiable additional
cost to the Company. However, estimates of Year 2000 related costs are based on
numerous assumptions and there is no certainty that estimates will be achieved
and actual costs could be materially greater than anticipated. The Company
anticipates that it will fund its additional Year 2000 costs from current
working capital.
Forward-Looking Statements
This report contains some forward-looking statements made pursuant to the
"safe harbor" provisions of the Private Securities Litigation Reform Act of 1995
which involve substantial risks and uncertainties including, without limitation,
continued acceptance of the Company's product, product demand, competition,
capital adequacy and the potential inability to raise additional capital if
required. These forward-looking statements can generally be identified by the
use of forward-looking words like "may," "will," "except," "anticipate,"
"intend," "estimate," "continue," "believe" or other similar words. Similarly,
statements that describe our future expectations, objectives and goals or
contain projections of our future results of operations or financial condition
are also forward-looking statements. Our future results, performance or
achievements could differ materially from those expressed or implied in these
forward-looking statements.
PART II: OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Reference is hereby made to Part I, Item 3 of the Company's Annual
Report filed on Form 10-K for the year ended November 30, 1998, which is
incorporated herein by reference.
ITEM 2. CHANGES IN SECURITIES
During the six months ended May 31, 1999, the Company issued 911,919 shares
of the company in consideration of $1,348,388. These shares were issued for a
combination of cash and a reduction of liabilities.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit 27. Financial Data Schedule (included only in the electronically
filed version of this report.
(b) Reports on Form 8-K
None
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
INNOVO GROUP INC.
By:\s\ Samuel J. Furrow
________________________
Samuel J. Furrow
Chairman of the Board and Chief Executive Officer
July 14, 1999
Pursuant to the requirements of the Securities Exchange Act of 1934, this
Report has been signed by the following persons on behalf of the Registrant in
the capacities and on the dates indicated.
Signature and Title Date
- ---------------------------- -------------
/s/Samuel J. Furrow Chief Executive Officer July 14, 1999
- --------------------
Samuel J. Furrow
Chairman of the Board,
Chief Executive Officer
and Director
/s/Bradley T. White Chief Financial Officer July 14, 1999
- --------------------
Bradley T. White
Treasurer
EXHIBIT 27 - FINANCIAL DATA SCHEDULE
[ARTICLE] 5
[MULTIPLIER] 1,000
<TABLE>
<S> <C> <C>
[PERIOD-TYPE] 3-MOS 6-MOS
[FISCAL-YEAR-END] NOV-30-1999 NOV-30-1999
[PERIOD-END] MAY-31-1999 MAY-31-1999
[CASH] 0 0
[SECURITIES] 0 0
[RECEIVABLES] 755 755
[ALLOWANCES] 66 66
[INVENTORY] 1846 1846
[CURRENT-ASSETS] 2853 2853
[PP&E] 6040 6040
[DEPRECIATION] 2198 2198
[TOTAL-ASSETS] 6822 6822
[CURRENT-LIABILITIES] 2614 2614
[BONDS] 3039 3039
[PREFERRED-MANDATORY] 0 0
[PREFERRED] 0 0
[COMMON] 629 629
[OTHER-SE] 1383 1383
[TOTAL-LIABILITY-AND-EQUITY] 6822 6822
[SALES] 1026 2091
[TOTAL-REVENUES] 1026 2091
[CGS] 576 1315
[TOTAL-COSTS] 576 1315
[OTHER-EXPENSES] 921 1767
[LOSS-PROVISION] 12 29
[INTEREST-EXPENSE] 101 192
[INCOME-PRETAX] (507) (1098)
[INCOME-TAX] 0 0
[INCOME-CONTINUING] (507) (1098)
[DISCONTINUED] 80 39
[EXTRAORDINARY] 0 0
[CHANGES] 0 0
[NET-INCOME] (427) (1059)
[EPS-BASIC] (0.07) (0.22)
[EPS-DILUTED] (0.07) (0.22)
</TABLE>
