SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB Quarterly Report Under Section
13 or 15 (d) of the Securities and Exchange Act of 1934
For the Quarter Ended November 30 , 1997
Commission File Number 01-19001
MILLER DIVERSIFIED CORPORATION
----------------------------------------------------
(Exact Name of Registrant as Specified in its Charter)
Nevada 84-1070932
- ------------------------- ----------------------
(State or other jurisdic- (I.R.S. Employer Iden-
tion of incorporation or tification Number)
organization)
Mailing Address:
P. O. Box 937
La Salle, Colorado 80645
23360 Weld County Road 35
La Salle, Colorado 80645
-------------------------------------
(Address of Principal Executive Office)
(970) 284-5556
--------------------------------------------------
(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
----- -----
Number of shares of Common Stock, par value $.0001, outstanding on January 10,
1998, 6,364,640.
Transitional Small Business Disclosure Format: YES NO X
----- -----
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements
- -----------------------------
MILLER DIVERSIFIED CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
- -------------------------------------------------------------------------------
November 30, August 31,
1997 1997
- -------------------------------------------------------------------------------
ASSETS
- ------
Current Assets:
Cash $ 78,469 $ 359,278
Trade accounts receivable 851,256 483,888
Trade accounts receivable - related parties 81,096 55,685
Account receivable - related party 120,029 8,897
Income tax refunds receivable 94,761 94,761
Inventories 471,693 466,449
Prepaid expenses 25,946 19,337
Current portion of notes receivable-
related party 250,000 250,000
- -------------------------------------------------------------------------------
Total Current Assets 1,973,250 1,738,295
- -------------------------------------------------------------------------------
Property and Equipment:
Feedlot facilities under capital lease
- related party 1,497,840 1,497,840
Equipment 77,453 77,453
Equipment under capital leases - related party 64,092 64,092
Leasehold improvements 92,335 90,403
--------- ---------
1,731,720 1,729,788
Less: Accumulated depreciation and amortization 546,407 525,320
- -------------------------------------------------------------------------------
Total Property and Equipment 1,185,313 1,204,468
- -------------------------------------------------------------------------------
Other Assets:
Securities available for sale 19,404 29,313
Notes receivable - related party 300,000 300,000
Deferred income taxes 176,962 176,962
Deposits and other 1,500 1,500
- -------------------------------------------------------------------------------
Total Other Assets 497,866 507,775
- -------------------------------------------------------------------------------
TOTAL ASSETS $ 3,656,429 $ 3,450,538
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Continued on next page.
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<PAGE>
MILLER DIVERSIFIED CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS - Continued
- -------------------------------------------------------------------------------
November 30, August 31,
1997 1997
- -------------------------------------------------------------------------------
LIABILITIES
-----------
Current Liabilities:
Trade accounts payable $ 572,543 $ 418,686
Accrued expenses 18,898 17,061
Accrued income taxes payable 24,096 --
Customer advance feed contracts 14,907 14,907
Customer advance feed contracts - related parties 40,892 40,892
Current portion of capital lease
obligations-related party 28,266 28,637
- -------------------------------------------------------------------------------
Total Current Liabilities 699,602 520,183
- -------------------------------------------------------------------------------
Capital Lease Obligations - related party 1,009,130 1,015,914
- -------------------------------------------------------------------------------
Total Liabilities 1,708,732 1,536,097
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Commitments
- -------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY
- --------------------
Preferred Stock -- --
Common Stock, par value $.0001 per share; 25,000,000
shares authorized; 6,364,640 issued and outstanding 636 636
Additional Paid-In Capital 1,351,693 1,351,693
Unrealized Gain (Loss) on Securities Available for sale (696) 9,213
Retained Earnings 596,064 552,899
- --------------------------------------------------------------------------------
Total Stockholders' Equity 1,947,697 1,914,441
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 3,656,429 $ 3,450,538
================================================================================
See Accompanying Notes to Unaudited Consolidated Financial Statements.
-3-
<PAGE>
MILLER DIVERSIFIED CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF EARNINGS
- -------------------------------------------------------------------------------
Three Months Ended November 30,
1997 1996
- -------------------------------------------------------------------------------
Revenues:
Feed and other sales $ 2,097,379 $ 2,598,191
Feedlot services 355,447 451,094
Interest 2,269 3,817
Interest on note receivable related party 8,250 3,750
Other 7,436 25,153
- -------------------------------------------------------------------------------
Total Revenues 2,470,781 3,082,005
- -------------------------------------------------------------------------------
Costs and Expenses
Cost of feed and other sales 1,905,115 2,412,250
Cost of feedlot services 282,607 391,618
Selling, general and administrative 187,004 192,939
Interest 164 8,416
Interest on capital leases - related party 28,630 29,610
- -------------------------------------------------------------------------------
Total Costs and Expenses 2,403,520 3,034,833
- -------------------------------------------------------------------------------
Earnings before Income Taxes 67,261 47,172
Income Taxes 24,096 15,648
- -------------------------------------------------------------------------------
NET EARNINGS $ 43,165 $ 31,524
- -------------------------------------------------------------------------------
EARNINGS PER COMMON SHARE AND
COMMON EQUILAVENT SHARE $ .01 $ Nil
- -------------------------------------------------------------------------------
Weighted Average Number of Common and
Common Equilavent Shares Outstanding 6,364,640 6,793,702
- -------------------------------------------------------------------------------
See Accompanying Notes to Unaudited Consolidated Financial Statements.
-4-
<PAGE>
MILLER DIVERSIFIED CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
- --------------------------------------------------------------------------------
Three Months Ended November 30, 1997 1996
- --------------------------------------------------------------------------------
Cash Flows from Operating Activities:
Cash received from customers $ 2,264,604 $ 3,104,670
Cash paid to suppliers and employees (2,484,196) (3,078,756)
Interest received 10,519 7,567
Interest paid (28,795) (34,004)
Taxes paid -- (80,000)
- --------------------------------------------------------------------------------
Net Cash Used by Operating Activities (237,868) (80,523)
- --------------------------------------------------------------------------------
Cash Flows From Investing Activities:
Acquisition of property and equipment (1,933) (7,885)
- --------------------------------------------------------------------------------
Net Cash Used by Investing Activities (1,933) (7,885)
- --------------------------------------------------------------------------------
Cash Flows From Financing Activities:
Proceeds from notes payable 380,000 588,000
Principal payments on:
Short-term notes payable (380,000) (748,000)
Capital lease obligations - related party (7,155) (13,206)
Net increase (decrease) in short-term cattle financing (33,853) 75,929
Increase in cash overdraft -- 168,323
- --------------------------------------------------------------------------------
Net Cash Provided (Used) by Financing Activities (41,008) 71,046
- --------------------------------------------------------------------------------
Net Decrease in Cash (280,809) (17,362)
Cash, Beginning of Period 359,278 86,551
- --------------------------------------------------------------------------------
Cash, End of Period $ 78,469 $ 69,189
- --------------------------------------------------------------------------------
Continued on next page.
-5-
<PAGE>
MILLER DIVERSIFIED CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS - Continued
- --------------------------------------------------------------------------------
Three Months Ended November 30, 1997 1996
- --------------------------------------------------------------------------------
RECONCILIATION OF NET EARNINGS TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:
Net earnings $ 43,165 $ 31,524
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation and amortization expense 21,087 26,526
Changes in assets and liabilities net of
short-term cattle financing:
(Increase) decrease in:
Trade accounts receivable (146,436) (10,660)
Trade accounts receivable - related party (49,222) 89,224
Accounts receivable - related party (111,132) (87,695)
Inventories (168,512) (171,122)
Prepaid expense (6,608) (5,984)
Increase (decrease) in:
Trade accounts payable and accrued expenses 155,694 246,387
Income taxes payable 24,096 (64,352)
Customer advance feed contracts-related parties -- (134,371)
- -------------------------------------------------------------------------------
Net Cash Used by Operating Activities $ (237,868)$ (80,523)
- -------------------------------------------------------------------------------
See Accompaning Notes to Unaudited Consolidated Financial Statements.
-6-
<PAGE>
MILLER DIVERSIFIED CORPORATION AND SUBSIDIARY
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
- ----------------------------------------------------
Securities Available for Sale:
--------------------------------------------------------------------------
Amortized Estimated Gross - Unrealized
Cost Market Value Gains Losses
--------------------------------------------------------------------------
August 31, 1997
Equity Securities $20,100 $29,313 $ 9,213 $ --
November 30, 1997
Equity Securities $20,100 $19,404 $ -- $ 696
In the Consolidated Statements of Cash Flow, the phrase "Short-term cattle
financing" includes changes in feeder cattle inventory held for sale to
customers, accounts receivable for feeder cattle sold to customers, accounts
payable for feeder cattle held for sale to customers, and accounts payable to
customers for slaughter cattle sold. The transactions from which these amounts
are derived do not have a material reflection of the operations of the Company,
and are thus only summarized.
The consolidated balance sheets as of November 30, 1997 and August 31, 1997, the
consolidated statements of earnings for the three months ended November 30, 1997
and 1996 and consolidated statements of cash flows for the three months ended
November 30, 1997 and 1996 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 as allowed by the rules and regulations of the
Securities and Exchange Commission.
In preparation of the above-described financial statements, all adjustments of a
normal and recurring nature have been made. The Company believes that the
accompanying unaudited financial statements contain all adjustments necessary to
present fairly the results of operations and cash flows for the periods
presented. Further, management believes that the disclosures are adequate to
make the information presented not misleading. It is suggested that these
financial statements be read in conjunction with the annual financial statements
and the notes thereto. The operations for the three months period ended November
30, 1997 are not necessarily indicative of the results to be expected for the
year.
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<PAGE>
Item 2 - Management's Discussion and Analysis of Financial Condition
- --------------------------------------------------------------------
and Results of Operations
-------------------------
Results of Operations
A summary of the net earnings (loss) for the first three months of the
fiscal year ended November 30, 1997, compared to the same periods the year
before is as follows:
----------------------------------------------------------------
Three Months Ended November 30
1997 1996 Increase
----------------------------------------------------------------
First Quarter $ 43,165 $ 31,524 $ 11,641
The most significant factor that affects operating results is the average
head numbers of cattle per day ("average head days") in the Company's feedlot
because feed is sold and feedlot services are rendered to the cattle owners.
Sales of feed and feedlot services account for 95% or more of the Company's
revenues. The average head days for the periods being compared were as follows:
----------------------------------------------------------------
Three Months Ended November 30 Decrease
1997 1996
----------------------------------------------------------------
First quarter 15,721 16,377 656
The 656, or 4.0%, decrease in average head days, impacts several areas, as
described below.
Another factor that affected earnings for the three months ended November
30, 1997 and 1996, and that did or will impact average head numbers and earnings
later in the fiscal year, is the Company's "fall calf program". As a service to
customers, the Company purchases for them calves weaned in the fall and places
them with local farmer-feeders who feed and care for the calves until the
following February through April when the cattle are transferred to the
Company's feedlot. These fall calf programs are undertaken on essentially a
breakeven basis; that is, the amounts paid to the farmer-feeders are about the
same as the amounts charged to the customers. The Company offers this service to
improve replacements in February through April when cattle placements are
usually low. The revenues are recorded as sales of feedlot services and the
costs as the cost of feedlot services. Therefore, a high volume in the fall calf
program can reduce the gross profit percentage on sales of feedlot services. For
the quarter ended November 30, 1997, the Company had 2,122 head in its fall calf
program as compared to 3,400 head the previous year. This resulted in a decrease
in the sales and costs of the fall calf program for the three months ended
November 30, 1997 over the same period the previous year of about $144,000 and
had a significant impact of the increase in the gross profit percentage from
sales of feedlot services as noted below. Although a majority of the decrease in
the fall calf program is associated with the decrease in the number of head on
the program, some of the decrease can be attributed to the fact that the
placements in the current quarter started later than in the quarter ended
November 30, 1997, therefore less charges and payments have been made.
Other key factors that affect earnings are the gross profit percentages on
feed and other sales, and on feedlot services. The following is a brief summary
of gross profit and gross profit percentages on feed and other sales:
-8-
<PAGE>
----------------------------------------------------------------------
Three Months Ended November 30 Increase
1997 1996 (Decrease)
----------------------------------------------------------------------
Feed and other sales $2,097,379 $2,598,191 $ (500,812)
Cost of feed and
other sales 1,905,115 2,412,250 (507,135)
----------------------------------------------------------------------
Gross profit $ 192,264 $ 185,941 $ 6,323
Gross profit percentage 9.2% 7.2% 2.0%
A variety of feed ingredients are combined in varying percentages and sold
as various rations. The ingredients are separately marked up so the gross profit
percentage on feed sales is affected by three variables:
(1) the type and quantity of individual rations sold
(2) management's discretionary pricing decisions
(3) feed ingredients sold under customer advance feed contracts which are
not subject to management's discretionary pricing decisions
The $6,323 increase in gross profit from feed and other sales for the
period ended November 30, 1997 from the same period the previous year is a
result of changes in two variables described above. For the period ended
November 30, 1997, more rations were sold which contained a higher percentage of
ingredients that contribute higher gross margins to the gross profit due to
their lower cost and/or markup. In an effort to maintain a competitive edge in
the industry by keeping feeding costs down, as well as build goodwill with its
customers, management lowered the markup on corn for the three months ended
November 30, 1997. Management is not anticipating the continuance of this lower
markup policy into the balance of the fiscal year. Management has implemented
procedures by which certain feedlot services are expected to generate additional
revenues.
The following is a brief summary of the gross profit and gross profit
percentages on sales of feedlot services:
----------------------------------------------------------------------
Three Months Ended November 30, Increase
1997 1996 (Decrease)
----------------------------------------------------------------------
Sales of feedlot services $ 355,447 $ 451,094 $ (95,647)
Cost of feedlot services 282,607 391,618 (109,011)
Gross profit $ 72,840 $ 59,476 $ 13,364
Gross profit percentage 20.5% 13.2% 7.3%
Sales of feedlot services consist primarily of yardage (pen rent) charged
to the owners of the cattle on feed and grain processing charged for the
processing of certain feed ingredients before they can be fed to the cattle.
Yardage charges for the quarter ended November 30, 1997 increased $25,791 or
15.2% from the same period the prior year even though there was a decrease in
the head numbers due to procedural changes as described previously. Grain
processing charges increased $22,400 or 19.2% for the period ended November 30,
1997 due to the mix of ingredients as described above.
-9-
<PAGE>
As previously noted, the sales and cost of sales for the fall calf program
are also included in the sales and cost of sales of feedlot services. If the
fall calf program sales and costs are excluded, the gross profit percentage for
the period ended November 30, 1997 is 21.8% compared to 20.7% for the same
period the previous year.
The cost of feedlot services consists largely of feedlot operating
expenses. The total cost of feedlot services decreased $109,011 for the period
ended November 30, 1997 compared to the same period the prior year. If the fall
calf program costs are excluded, the increase for the period ended November 30,
1997 compared to the same period the prior year is $34,827. Even though there
was a decrease in average head days, changes in the types of ingredients used in
the rations and the need to maintain a stable workforce, has necessitated an
increase in labor costs about $8,300 and equipment fuel and repair costs
increased approximately $11,600. The balance of the change is due to increases
and decreases in various expenses. Management does not anticipate any additional
increases in labor, although labor costs are expected to remain at or slightly
below current levels.
Other revenues decreased $17,717. This decrease is primarily the result of
sale of the Company's Thornton, Colorado property in May 1997. The property had
been used for boarding horses, from which the Company received approximately
$9,200 in rental fees for the period ended November 30, 1996. Due to
corresponding reductions in management, sales and adminstrative costs,
management does not expect loss of revenue from the discontinued operations to
have a negative affect on the Company's earnings. The balance of the increase is
the result of increases and decreases in various secondary revenue producing
activities.
Interest income decreased $1,548 or 40.6% for the period ended November 30,
1997 over the same period the prior year due to the Company's "carrying" or
financing fewer customer feeding charges. This reduction in revenues is
accompanied by a reduction in interest expense, as discussed below, and
therefore does not have a negative affect on the Company's earnings.
Selling, general, and administrative expenses decreased $5,935 for the
period ended November 30, 1997 over the same period the prior year. For the
quarter ended November 30, 1997, the Company incurred $11,800 in customer death
loss adjustments, compared to no adjustments the same period the previous year,
an increase of $11,800. These adjustments, although not required, are made to
customers for the purpose of creating goodwill and/or when management feels that
death losses incurred by a customer are extraordinary in nature. Legal and
accounting fees increased $8,300 for the period ended November 30, 1997 over the
same period the prior year. As a result of the selling of the Thornton, Colorado
property, as described above, the Company realized a decrease of $16,800 in
general, sales and administrative costs that were directly associated with the
management and operation of the property. The balance of the increase in
selling, general, and administrative expenses are various increases and
decreases in several accounts.
Interest expense decreased $8,252 for the period ended November 30, 1997
over the same period the prior year. This is the result of reduced borrowings.
The need to borrow funds was reduced due to the use of the cash received from
the sale of the Thornton, Colorado property, as described previously, for
operations.
Income taxes are directly related to the net earnings before income taxes
and certain assumptions that are made with the estimations. For the period ended
November 30, 1997, income taxes increased $8,448 from the same period the prior
year while pretax income increased $20.089.
-10-
<PAGE>
Liquidity and Capital Resources
- -------------------------------
For the three months ended November 30, 1997, operating activities required
$237,868 more funds than were internally-generated compared to $80,523 for the
same period the previous year, an increase of $157,345. Cash received from
customers for the period decreased $840,066, but cash paid to suppliers and
employees decreased only $594,560, for a total cash decrease of $245,506.
Interest received for the period increased $2,952, while interest paid decreased
$5,209, for a total cash increase of $8,161. For the period ended November 30,
1996, net income tax payments totalled $80,000 compared to no taxes being paid
for the period ended November 30, 1997, a net cash increase of $80,000.
For the three months ended November 30, 1997 the net cash that was used by
investing operations of $1,933 compared to the net cash required by investing
operations the same period the previous year of $7,885, resulting a net cash
increase of $5,952. For the period ended November 30, 1997, acquisition of
property and equipment decreased $5,952.
The net cash used by financing activities was $41,008 for the three months
ended November 30, 1997, a decrease of $112,054 from $71,046 cash provided by
financing activities for the same period the prior year. The change in net
borrowings over repayments of notes and other obligations resulted in a $166,051
decrease in funds used for the three months ended November 30, 1997 compared to
the same period the previous year. Net short-term cattle financing for the three
months ended November 30, 1997 used $33,853 compared to the providing funds the
same period the prior year of $75,929, a decrease in funds provided of $109,782.
The increase in the cash overdraft for the period ended November 30, 1996,
provided an additional $168,323.
The Company's working capital (current assets minus current liabilities)
increased by $55,536 during the three months ended November 30, 1997 from
$1,218,112 at August 31, 1997 to $1,273,648 at November 30, 1997. There were
offsetting increases and decreases to several current assets and current
liabilities as shown on the consolidated balance sheets.
Trade accounts receivable increased by $367,368 for the three months ended
November 30, 1997. Feedlot sales accounts receivable increased $204,100 due to
increased sales; feeder cattle accounts receivable increased $197,100 due to
sales that were made on November 30, 1997. The increase in trade accounts
receivable from related parties is due to the increase in sales to related
parties.
Inventories increased $5,244 due to an increase in the level of company
owned feeder cattle being fed for slaughter inventory on hand of $278,416 and a
decrease in the inventory of feeder cattle held for resale to customers of
$163,268. The inventory level of feed ingredients on hand decreased $109,904.
The amount of feed ingredient inventories on hand at any given time will
fluctuate depending on such variables as anticipated weather conditions,
consumption levels, delivery schedules, and the number of various ingredients
being fed. These fluctuations are the result of normal operations.
The increase in trade accounts payable of $153,857 is due to normal
business transactions.
-11-
<PAGE>
The Company had a revolving line of credit of $200,000 from a local bank
that matured December 31, 1997 and bore interest at 1.5% over the prime rate
(actual rate of 10.00% at November 30, 1997). There was no outstanding balance
at November 30, 1997 which meant that the Company could generate an additional
$200,000 cash if needed under this line of credit. The note was secured by feed
accounts receivable, feed inventories, and equipment. Miller Feeders, Inc. (MFI)
had a $300,000 revolving line of credit at the same local bank for the
procurement of feeder cattle for resale to customers. The line of credit matured
on December 31, 1997 and bore interest at 1.5% over the prime rate (actual rate
of 10.00% at November 30, 1997). There was no outstanding balance at November
30, 1997 which meant that MFI could borrow up to $300,000 to purchase feeder
cattle for resale to customers. The line was secured by feeder cattle
inventories and feeder cattle accounts receivable.
In January 1998 the Company obtained new lines of credit with the local
office of a credit services company. These revolving lines of credit include a
$300,000 operating line of credit, an $850,000 line of credit for the purpose of
feeding Company owned cattle to slaughter and a $2,000,000 line of credit for
the purpose of financing customer cattle and feed purchases. MFI also obtained a
$300,000 revolving line of credit from the same credit services company for the
purpose of procuring feeder cattle for sale to customers. Although not tied
directly to a prime rate, the interest rate on all of the above mentioned lines
of credit are anticipated to have an effective rate of about .5% over prime. All
of the lines of credit are secured by inventories, accounts receivable and
equipment and are guaranteed by two officers/directors and a related party.
The Company had no material commitments for capital expenditures at
November 30, 1997.
Management believes it has adequate financial resources to conduct
operations at present and reasonably anticipated levels.
-12-
<PAGE>
PART II OTHER INFORMATION
Items 1 through 6 None.
- -----------------
-13-
<PAGE>
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.
MILLER DIVERSIFIED CORPORATION
------------------------------
(Registrant)
Date: January 20, 1998 /s/ JAMES E MILLER
-----------------------------------
James E. Miller
President,
Chief Executive Officer,
Chief Financial Officer
Date: January 20, 1998 /s/ STEPHEN R. STORY
-----------------------------------
Stephen R. Story
Secretary-Treasurer
-14-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION FROM FORM 10-QSB FOR
THE THREE MONTHS ENDED NOVEMBER 30, 1997 AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> AUG-31-1998
<PERIOD-END> NOV-30-1997
<CASH> 78,469
<SECURITIES> 19,404
<RECEIVABLES> 1,182,352
<ALLOWANCES> 0
<INVENTORY> 471,693
<CURRENT-ASSETS> 1,973,250
<PP&E> 1,731,720
<DEPRECIATION> 546,407
<TOTAL-ASSETS> 3,656,429
<CURRENT-LIABILITIES> 699,602
<BONDS> 0
0
0
<COMMON> 636
<OTHER-SE> 1,947,061
<TOTAL-LIABILITY-AND-EQUITY> 3,656,429
<SALES> 2,097,379
<TOTAL-REVENUES> 2,470,781
<CGS> 1,905,115
<TOTAL-COSTS> 282,607
<OTHER-EXPENSES> 187,004
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 28,794
<INCOME-PRETAX> 67,261
<INCOME-TAX> 24,096
<INCOME-CONTINUING> 43,165
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 43,165
<EPS-PRIMARY> 0.007
<EPS-DILUTED> 0.007
</TABLE>
