<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q/A Amendment #1
(X) QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1994
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 0-17846
CCAIR, Inc.
Incorporated under the laws of Delaware 56-1428192
(I.R.S. Employer ID No.)
4700 Yorkmont Road, Second Floor
Charlotte, North Carolina 28208
(704) 359-8990
Indicate by a 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.
Class Outstanding at February 6, 1995
Common stock, $0.01 par value 7,381,195
<PAGE>
CCAIR, Inc.
FORM 10-Q/A QUARTERLY REPORT FOR
FISCAL QUARTER ENDED DECEMBER 31, 1994
TABLE OF CONTENTS
PAGE NO.
PART I - FINANCIAL INFORMATION:
ITEM 1. Financial Statements: 3
Condensed Balance Sheets as of
December 31, 1994 and June 30, 1994. 3
Condensed Statements of Income for
the Three and Six Months ended
December 31, 1994 and 1993. 4
Condensed Statements of Cash Flows
for Six Months ended December 31,
1994 and 1993. 5
Notes to Condensed Financial Statements. 6
ITEM 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations. 7
PART II - OTHER INFORMATION:
ITEM 1. Legal Proceedings. 9
ITEM 2. Changes in Securities. 9
ITEM 3. Defaults Upon Senior Securities. 9
ITEM 4. Submission of Matters to a Vote
of Security Holders. 9
ITEM 5. Other Information. 10
ITEM 6. Exhibits and Reports on Form 8-K. 10
SIGNATURES 10
EXHIBIT INDEX E-1
2
<PAGE>
CCAIR, Inc.
PART I - FINANCIAL INFORMATION
ITEM 1. Financial Statements
CONDENSED BALANCE SHEETS
(Unaudited)
___________
<TABLE>
<CAPTION>
December 31, June 30,
1994 1994
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 2,033 $ 651,020
Receivables, net 4,275,588 5,244,782
Inventories, less allowance for
obsolescence of $466,000 3,095,644 3,192,219
Prepaid expenses and deposits 1,059,130 3,154,433
Total current assets 8,432,395 12,242,454
PROPERTY AND EQUIPMENT:
Flight equipment and aircraft 18,468,024 17,842,203
Ground and other equipment and
leasehold improvements 4,310,570 3,919,105
22,778,594 21,761,308
Less accumulated depreciation
and amortization 10,697,510 9,423,875
12,081,084 12,337,433
OTHER ASSETS 45,543 49,075
Total assets $20,559,022 $24,628,962
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable and current
maturities of long-term debt $ 960,492 $ 3,395,830
Current obligations under capital leases 339,473 360,196
Accounts payable 2,705,872 3,011,203
Accrued expenses 4,688,113 5,169,610
Total current liabilities 8,693,950 11,936,839
LONG-TERM DEBT, less current maturities 1,853,065 2,570,438
Capital lease obligations, less
current obligations 3,190,175 3,331,314
Deferred credits, net 963,126 1,293,920
Noncurrent rent obligations 619,602 124,780
Total liabilities 15,319,918 19,257,291
Commitments and contingencies
SHAREHOLDERS' EQUITY:
Common stock, $.01 par value, 10,000,000
shares authorized, 7,381,195 issued and
outstanding at December 31 and June 30, 1994 73,812 73,812
Additional paid-in-capital 16,997,186 16,997,186
Accumulated deficit (11,831,894) (11,699,327)
Total shareholders' equity 5,239,104 5,371,671
Total liabilities and
shareholders' equity $20,559,022 $24,628,962
</TABLE>
See notes to condensed financial statements.
3
<PAGE>
CCAIR, Inc.
CONDENSED STATEMENTS OF INCOME
(Unaudited)
___________
<TABLE>
<CAPTION>
3 Months ended December 31, 6 Months ended December 31,
1994 1993 1994 1993
<S> <C> <C> <C> <C>
OPERATING REVENUES:
Passenger $14,595,693 $15,731,125 $29,986,265 $30,856,938
Public service 156,583 147,724 312,485 334,294
Other 343,575 288,149 705,871 501,571
Total 15,095,851 16,166,998 31,004,621 31,692,803
OPERATING EXPENSES:
Flight operations 4,670,867 6,395,325 10,892,204 12,820,093
Fuel and oil 1,364,504 1,318,989 2,731,237 2,700,839
Maintenance 2,797,195 2,826,299 5,552,615 5,733,330
Ground operations 1,891,686 2,487,174 3,821,358 4,999,916
Advertising, promotions
and commissions 2,127,031 2,159,735 4,461,460 4,520,819
General and administration 1,183,437 1,000,669 2,407,761 2,084,305
Depreciation and amortization 424,641 392,134 854,695 754,657
Total 14,459,361 16,580,325 30,721,330 33,613,959
OPERATING INCOME (LOSS) 636,490 ( 413,327) 283,291 ( 1,921,156)
Interest expense ( 202,797) ( 191,231) ( 408,195) ( 374,979)
Other income (expense), net 3,615 7,673 ( 7,664) ( 24,308)
Net income (loss) $ 437,308 $( 596,885) $( 132,568) $(2,320,443)
EARNINGS (LOSS) PER COMMON SHARE $ .06 $( .09 ) $( .02 ) $( .34 )
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 7,535,163 6,935,891 7,381,195 6,801,239
See notes to condensed financial statements.
4
<PAGE>
CCAIR, Inc.
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
___________
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended December 31,
1994 1993
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $( 132,568) $(2,320,443)
Adjustments to reconcile net loss to
net cash provided by operating activities:
Note discount amortization 168,705 189,776
Depreciation and amortization 2,438,736 2,353,544
Loss on disposal of assets 22,896 6,684
Rental expense in excess
of (less than) payments 254,139 ( 16,290)
Changes in certain assets and liabilities:
Accounts receivable 970,184 ( 689,325)
Inventories 64,477 ( 199,654)
Other note payable ( 801,000) ---
Accounts payable ( 306,322) 455,317
Accrued expenses ( 481,497) 1,928,478
Prepaid expenses and deposits 2,095,303 866,240
Other changes, net ( 86,578) ( 90,111)
NET CASH PROVIDED BY
OPERATING ACTIVITIES 4,206,475 2,484,216
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (2,195,110) (2,742,786)
Proceeds from sale of assets 21,925 1,230
Change in restricted funds --- ( 14,893)
NET CASH USED BY
INVESTING ACTIVITIES (2,173,185) (2,756,449)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock --- 75,015
Issuance of notes and long-term debt 1,393,054 274,125
Reductions of notes and long-term debt (4,075,331) (2,274,548)
NET CASH USED BY
FINANCING ACTIVITIES (2,682,277) (1,925,408)
Net decrease in cash ( 648,987) (2,197,641)
Cash, beginning of period 651,020 2,745,157
CASH, END OF PERIOD $ 2,033 $ 547,516
</TABLE>
See notes to condensed financial statements.
5
<PAGE>
CCAIR, Inc.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
___________
1. Basis of Presentation:
The condensed financial statements included herein have
been prepared by CCAIR, Inc. (the "Company"), without
audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. These condensed
financial statements reflect all adjustments which are, in
the opinion of management, necessary for a fair
statement of results for the interim period. These
adjustments consist solely of normal recurring
adjustments. Certain information and footnote disclosures
normally included in the 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. It is suggested that these
condensed financial statements be read in conjunction
with the financial statements and the notes thereto
included in the Company's annual report for fiscal year
ended June 30, 1994.
2. Earnings (Loss) Per Common Share:
The computation of earnings (loss) per common share is
based on the weighted average number of common shares
outstanding for each period, after considering the effect
of common stock equivalents.
3. Commitments and Contingencies:
The Company is subject to the regulatory authority,
among others, of the Federal Aviation Administration
and the Department of Transportation. These agencies
require compliance with their standards and conduct
safety and compliance audits. Violations, if any, of
these regulations subject the Company to fines or
sanctions. The Company is also subject to other claims
arising in the ordinary course of business. In the
opinion of management, the outcome of these matters would
not have a material adverse impact on the Company's
financial condition or results of operations.
4. Lease Activity:
The Company entered into a revised aircraft lease
agreement with Shorts, effective October 1, 1994, for the
Company's nine Shorts 360 aircraft. This revised
agreement provided for reductions in lease payments
aggregating approximately $94,000 per month for the
remainder of the lease term. In addition, the Company
entered into a revised aircraft agreement with Jet
Acceptance Corporation ("JACO"), effective September 1,
1994, for the Company's twelve Jetstream 31 aircraft.
This revised agreement provided for reductions in
lease payments aggregating approximately $98,000 per
month through December 31, 1995. The Company has
accounted for the modifications to the JACO lease
agreements as they have occurred. As a result, at
December 31, 1994, the Company has recorded a deferred
credit of approximately $271,000 representing the
excess of rent expense recorded on a straight line basis
(reflecting lease payment reductions only through December
31, 1995) over actual payments made from September 1,
1994 through December 31, 1994. This amount, along with
additional amounts accumulated through December 31,
1995 will reduce lease expense over the remaining term of
the leases.
In fiscal 1994, the Company failed to meet certain lease
payment obligations totaling $585,000 under aircraft
lease agreements with Mellon Financial Services
Corporation #3 ("Mellon"), resulting in cancellation of
the related agreements. The Company operated the aircraft
under interim leases with Mellon through November, 1994.
In November, 1994, CIT Leasing Corporation ("CIT"),
acquired the four Dash 8 aircraft from Mellon. The
Company subsequently signed new lease agreements with CIT,
which expire in June, 2007, resulting in an annual
reduction of approximately $516,000 in aircraft rental
payments. As a result, during the second quarter of
fiscal 1995, the Company reversed the $585,000 of accrued
rental payments as a reduction of flight operations
expense.
6
<PAGE>
CCAIR, Inc.
FISCAL QUARTER ENDED DECEMBER 31, 1994
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
General
In the six-month period ended December 31, 1994,
the Company realized the benefits of expense reductions
demonstrated by a decrease of 8.6% in operating expenses over the
prior year period. A decrease in operating revenue due to
declines in fares, however, absorbed the benefits of the expense
reductions and resulted in a net loss of $132,568 or 2(cent) per
share, as compared to a net loss of $2,320,443 or 34(cent) per share in
the six-month period ended December 31, 1993.
The expense reductions were put in place in the
three-month period ended December 31, 1994 and those reductions,
plus a reversal of previously accrued rental expense of
approximately $585,000 (see Note 4), were primarily responsible
for net income of $437,308 or 6(cent) per share in that
three-month period. Those results compared to a net loss of
$596,885 or 9(cent) per share in the same period in the prior year.
Results of Operations
The following table sets forth selected operating
comparisons for the three- and six-month period ended December 31,
1994 and 1993: Airline Operating Statistics
<TABLE>
<CAPTION>
For the Three Months For the Six Months
Ended December 31, Ended December 31,
% %
1994 1993 Change 1994 1993 Change
<S> <C> <C> <C> <C> <C> <C>
Operating revenue $15,095,851 $16,166,998 ( 6.6) $31,004,621 $31,692,803 ( 2.2)
Operating expense $14,459,361 $16,580,325 (12.8) $30,721,330 $33,613,959 ( 8.6)
Revenue passengers carried 218,951 222,025 ( 1.4) 457,084 451,340 1.3
Revenue passenger miles (1) 36,594,480 37,910,254 ( 3.5) 75,146,043 76,985,796 ( 2.4)
Available seat miles (2) 75,927,606 71,116,235 6.8 150,413,466 149,312,465 .7
Passenger load factor (3) 48.2% 53.3% ( 9.6) 50.0% 51.6% ( 3.1)
Passenger breakeven load factor 46.7% 56.2% (16.9) 50.2% 56.2% (10.7)
Yield per revenue passenger
mile (4) 39.9(cent) 41.5(cent)( 3.9) 39.9(cent) 40.1(cent)( .5)
Operating cost per available
seat mile 19.0(cent) 23.3(cent)(18.5) 20.4(cent) 22.5(cent)( 9.3)
Average passenger trip (miles) 167.1 170.7 ( 2.1) 164.4 170.6 ( 3.6)
Average daily aircraft utilization
per plane (block hours) 8.1 7.3 11.0 8.0 7.7 3.9
Average passenger fare $66.66 $70.85 ( 5.9) $65.61 $68.37 ( 4.0)
Average monthly completion factor 95.0% 95.8% ( .9) 95.5% 96.4% ( .9)
</TABLE>
(1) One revenue passenger transported one mile.
(2) The product of the number of aircraft miles and
the number of available seats on each stage, representing
the total passenger capacity offered.
(3) The ratio of revenue passenger miles to available seat
miles, representing the percentage of seats occupied by
revenue passengers.
(4) The operating revenue per revenue passenger mile.
For the Three Months Ended December 31, 1994 Compared to Three Months
Ended December 31, 1993
The Company is reporting an operating income for a
three-month period for the first time since the three-month period
ended March 31, 1993. The operating income of $636,490
represents a significant improvement in operating results over
the operating loss of $413,327 experienced in the three-month
period ended December 31, 1993.
7
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS, continued
Results of Operations, continued
Operating revenue decreased by 6.6% over the prior
year period as demonstrated by comparative decreases in revenue
passengers carried (1.4%), revenue passenger miles (3.5%), yield
per revenue passenger miles (3.9%) and average passenger fares
(5.9%). The Company believes that the decrease in revenue
passengers carried was due, in part, to the public's
hesitancy to fly commuter aircraft as the result of recent
commuter accidents and a lessening demand for
nondiscretionary travel. The decrease in revenue passenger miles
was also related to the replacement of certain destinations in the
Company's service schedule with destinations closer to Charlotte,
North Carolina. The decreases in yield per revenue passenger mile
and average passenger fares were largely the result of significant
fare discounting during the holiday periods of Thanksgiving and
Christmas.
The operating expense reductions in the three-month
period ended December 31, 1994, reflected the Company's efforts
to reduce operating costs during the 1994 calendar year. In the
period, aircraft lease amendments were put into place that
reduced the rental payments on all three of the Company's aircraft
types - Jetstream 31, Shorts 360 and de Havilland Dash 8. In
addition, the Company implemented a salary reduction plan with its
pilots that will be phased back in over eighteen months. Operating
expense was also reduced by approximately $585,000 that
represented a reversal of accrued rental payments previously
due. Ground operations also had a decrease over the prior
year period as a result of lower per passenger service fees
incurred by the Company per agreements with USAir and savings from
the closing of stations in prior periods.
For the Six Months Ended December 31, 1994 Compared to
Six Months Ended December 31, 1993
The Company experienced an operating income of $283,291
or less than 4(cent) per share and a net loss of $132,568 or 2(cent) per
share in the six-month period ended December 31, 1994, as compared
to an operating loss of $1,921,156 or 28(cent) per share and a net
loss of $2,320,443 or 34(cent) per share. The improvement in results
was due to significant reductions in operating expenses.
The comparative increase in operating revenue achieved by
the Company in the three-month period ended September 30, 1994,
was reversed in the following three-month period. The decline was
in passenger revenue brought about by the decrease in
passengers and fare discounting during the holidays of Thanksgiving
and Christmas. During the three-month period ended December
31, 1994, public service and other, primarily charter income, had
increases over the prior year period.
The largest decrease in operating expense was achieved
in flight operations, and was the result of the reductions in
lease expenses and pilot expenses, as well as the reversal of
approximately $585,000 obtained in the three-month period ended
December 31, 1994. Significant reductions were also experienced in
ground operations resulting from lower per passenger service fees
incurred by the Company per agreements with USAir and the
closing of stations in prior periods. These reductions have
brought the operating cost per available seat mile to 20.4(cent) as
compared to 22.5(cent) in the prior year period.
Liquidity and Capital Resources
The cash position of the Company remains critical at
December 31, 1994, but the improved operating results of the
Company should provide cash flow, together with a new line of
credit in the amount of $2.5 million, sufficient for the
Company's operations. The key element to improved operating
results will be the level of the yield per revenue passenger
mile. In the three-month period ended December 31, 1994, the yield
per revenue passenger mile fell to 39.9(cent). The yield per
revenue passenger mile has improved in January, 1995, and the
early part of February, 1995, but the yield could be affected by
fare discounting beyond the control of the Company.
On February 10, 1995, the Company obtained a line of
credit in an amount not to exceed $2.5 million from JSX Capital
Corporation ("JSX"). JSX is an affiliate of Jet Acceptance
Corporation, the leasing company for the Company's fleet of
Jetstream 31 aircraft, and British Aerospace Holdings, Inc., the
company that had previously collateralized the Company's line
of credit from NationsBank, N.A. through a loan purchase
agreement. The line of credit permits the Company to borrow up to
50% of a borrowing base, consisting of the Company's
transportation and nontransportation charges to Airlines
Clearing House, Inc. or such greater amount as JSX shall
determine, but in no event more than $2.5 million. The line of
credit is secured by all of the Company's accounts receivable,
bears interest at prime + 2% and terminates on December 31, 1995,
but may be extended for successive one-year periods.
8
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS, continued
Liquidity and Capital Resources, continued
Negotiations with other lenders for a line of credit were
terminated, due, in part, to the inability of those lenders to
reach satisfactory agreement with British Aerospace Holdings,
Inc. over a new loan purchase agreement.
In the six-month period ended December 31, 1994, the
Company used cash reserves and other sources of cash to reduce
accounts payable and notes payable. The Company is accruing lease
payments at a higher rate than the payments actually made,
aggregating $254,139. This accrual treats the lease reductions in
place until December, 1995, as reducing the total payments
under the leases and applies the reductions pro rata over the
remaining months of the lease terms.
The capital expenditures of $2,195,110 during the
six-month period resulted primarily from expenditures on
major overhauls, betterment and removals of engines and on major
spare parts and assemblies. The Company anticipates an increase
in capital expenditures for overhauls of engines on Dash 8 aircraft
but, at the same time, capital expenditures on the Jetstream 31 and
Shorts 360 aircraft should decrease.
USAir has notified the Company of an increase in service
fees to be effective on March 1, 1995, but the effect of those
increases is not certain because the Company receives monies
from USAir through its servicing agreement for Concourse D. The
Company believes that the increase will not have an adverse effect
on the Company's program to reduce operating costs.
PART II - OTHER INFORMATION
ITEM 1. Legal Proceedings
None to report.
ITEM 2. Changes in Securities
None to report.
ITEM 3. Defaults Upon Senior Securities
None to report.
ITEM 4. Submission of Matters to a Vote of Security Holders
The annual meeting of shareholders of the
Company was held in Charlotte, North Carolina on
November 15, 1994. Of the 7,381,195 shares of
common stock outstanding on the record date,
6,314,331 shares were present by proxy. Those
shares were voted on the matters before the
meeting as follows:
A. Election of Directors:
<TABLE>
<CAPTION>
Name of Director No. Votes For: No. Votes Withheld:
<S> <C> <C>
John A. Adams 6,271,520 42,811
K. Ray Allen 6,270,020 44,311
Kenneth W. Gann 6,271,720 42,611
Gordon Linkon 6,271,720 42,611
Dean E. Painter, Jr. 6,271,620 42,711
</TABLE>
9
<PAGE>
B. Proposal to ratify the selection of
Arthur Andersen LLP. as independent
auditors of the Company for the fiscal
year ending June 30, 1995:
<TABLE>
<CAPTION>
<S> <C> <C>
For: 6,263,346 Against: 39,350 Withholding vote for: 11,635
</TABLE>
ITEM 5. Other Information
None to report.
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit No. Exhibit
4 Specimen Common Stock Certificate. (1)
11 Computation of Earnings Per Share.
(b) Reports on Form 8-K
None.
______________________
(1) Incorporated by reference to Registration Statement on
Form S-1, File No. 33-28967.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
CCAIR, Inc.
By: /s/ Kenneth W. Gann
October 25, 1995 Kenneth W. Gann, President and
Chief Executive Officer
(Principal Executive Officer,
Principal Financial Officer)
10
<PAGE>
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit Filed Sequential
No. Exhibit Herewith At Page No.
<S> <C> <C> <C>
2 Revised Plan of Reorganization
4 Specimen Common Stock
Certificate. (1)
11 Computation of Earnings Per Share E-2
</TABLE>
_____________________
(1) Incorporated by reference to Registration Statement on
Form S-1, File No. 33-28967.
E-1
<PAGE>
PART II, ITEM 6 EXHIBIT 11
CCAIR, Inc.
COMPUTATION OF EARNINGS (LOSS) PER SHARE (1)
<TABLE>
<CAPTION>
Three Months ended December 31,
1994 1993
<S> <C> <C>
Net income (loss) $ 437,308 $( 596,885)
Shares
Weighted average number of
shares outstanding 7,381,195 6,935,891
Assuming exercise of options (2) 153,968 ---
Weighted average number of
shares outstanding,
as adjusted 7,535,163 6,935,891
Income (loss) per share: $ .06 $ ( .09 )
Six Months ended December 31,
1994 1993
Net loss $( 132,568) $(2,320,443)
Shares
Weighted average number of
shares outstanding 7,381,195 6,801,239
Assuming exercise of options (3) --- ---
Weighted average number of
shares outstanding,
as adjusted 7,381,195 6,801,239
Loss per share: $ ( .02 ) $ ( .34 )
</TABLE>
(1) Fully diluted average number of shares outstanding, as
adjusted and earnings (loss) per share are the same as
calculated for primary for the periods presented.
(2) Not reflected in 1993 due to anti-dilutive effect.
(3) Not reflected in 1994 and 1993 due to anti-dilutive effect.
E-2
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
*This schedule contains summary financial information extracted from CCAIR,
Inc. condensed financial statements for the fiscal quarter ended March 31, 1995
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<RESTATED>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1995
<PERIOD-END> MAR-31-1995
<CASH> 448,058
<SECURITIES> 0
<RECEIVABLES> 5,522,603
<ALLOWANCES> 0
<INVENTORY> 3,127,717
<CURRENT-ASSETS> 10,090,314
<PP&E> 23,392,356
<DEPRECIATION> 11,131,187
<TOTAL-ASSETS> 22,397,025
<CURRENT-LIABILITIES> 10,681,828
<BONDS> 0
<COMMON> 73,812
0
0
<OTHER-SE> 4,890,700
<TOTAL-LIABILITY-AND-EQUITY> 22,397,025
<SALES> 0
<TOTAL-REVENUES> 14,960,008
<CGS> 0
<TOTAL-COSTS> 14,986,966
<OTHER-EXPENSES> 5,226
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 242,408
<INCOME-PRETAX> (274,592)
<INCOME-TAX> 0
<INCOME-CONTINUING> (274,592)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (274,592)
<EPS-PRIMARY> ($.04)
<EPS-DILUTED> ($.04)
</TABLE>
