<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
or the transition period from to
Commission file number 0-18443
MEDICIS PHARMACEUTICAL CORPORATION
(Exact name of Registrant as specified in its charter)
Delaware 52-1574808
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
4343 East Camelback Road, Suite 250
Phoenix, Arizona 85018-2700
(Address of principal executive offices)
(602) 808-8800
(Registrant's telephone number,
including area code)
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
YES X NO
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding at October 31, 1997
Class A Common Stock $.014 Par Value 14,080,098
Class B Common Stock $.014 Par Value 281,974
<PAGE> 2
MEDICIS PHARMACEUTICAL CORPORATION
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION Page
----
<S> <C>
Item 1 Financial Statements
Condensed Consolidated Balance Sheets as of
September 30, 1997 and June 30, 1997 3
Condensed Consolidated Statements of Income
for the Three Months Ended September 30, 1997 and 1996 5
Condensed Consolidated Statements of Cash Flows for the
Three Months Ended September 30, 1997 and 1996 6
Notes to the Condensed Consolidated Financial Statements 7
Item 2 Management's Discussion and Analysis of Financial Condition
and Results of Operations 9
PART II. OTHER INFORMATION
Item 6 Exhibits and Reports on Form 8-K 12
SIGNATURES 12
</TABLE>
2
<PAGE> 3
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
MEDICIS PHARMACEUTICAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
September 30, June 30,
1997 1997
------------ ------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 33,092,352 $ 33,623,397
Short-term investments 54,358,701 51,508,611
Accounts receivable, net 7,917,904 6,352,840
Inventories, net 4,294,268 2,981,877
Deferred tax assets 9,423,000 6,257,000
Accrued interest income 1,098,641 651,440
Other current assets 2,684,981 2,167,065
------------ ------------
Total current assets 112,869,847 103,542,230
------------ ------------
Property and equipment:
Furniture and equipment 860,433 755,905
Leasehold improvements 170,000 170,000
Less accumulated depreciation 255,226 213,764
------------ ------------
Net property and equipment 775,207 712,141
------------ ------------
Intangible assets:
Intangible assets related to
product acquisitions 36,999,644 36,999,644
Other intangible assets 1,624,514 1,608,762
Less accumulated amortization 3,765,163 3,325,621
------------ ------------
Net intangible assets 34,858,995 35,282,785
------------ ------------
Other non-current assets 1,000,000 1,000,000
------------ ------------
$149,504,049 $140,537,156
============ ============
</TABLE>
The accompanying notes are an integral part of this statement.
3
<PAGE> 4
MEDICIS PHARMACEUTICAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
September 30, June 30,
1997 1997
------------- -------------
<S> <C> <C>
LIABILITIES
Current liabilities:
Accounts payable $ 4,426,916 $ 4,128,370
Accrued contract costs -- 600,000
Notes payable 5,245 5,245
Accrued incentives 1,011,281 1,671,103
Accrued royalties 840,182 712,432
Other accrued liabilities 1,320,370 1,622,093
------------- -------------
Total current liabilities 7,603,994 8,739,243
------------- -------------
Long-term liabilities:
Notes payable 111,335 111,335
Other non-current liabilities 122,499 121,761
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred Stock, $0.01 par value;
shares authorized: 5,000,000; no shares issued -- --
Class A Common Stock, $0.014 par value;
shares authorized: 50,000,000; issued and
outstanding: 14,043,106 and 13,978,714 at
September 30, 1997 and at June 30, 1997,
respectively 196,603 195,702
Class B Common Stock, $0.014 par value;
shares authorized: 1,000,000; issued and
outstanding: 281,974 at September 30, 1997
and at June 30, 1997 3,948 3,948
Additional paid-in capital 145,248,855 138,973,208
Accumulated deficit (3,783,185) (7,608,041)
------------- -------------
Total stockholders' equity 141,666,221 131,564,817
------------- -------------
$ 149,504,049 $ 140,537,156
============= =============
</TABLE>
The accompanying notes are an integral part of this statement.
4
<PAGE> 5
MEDICIS PHARMACEUTICAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended
-----------------------------
September 30, September 30,
1997 1996
------------ ------------
<S> <C> <C>
Net sales $ 13,911,331 $ 7,268,227
------------ ------------
Operating costs and expenses:
Cost of product revenue 2,545,739 1,954,608
Selling, general and administrative 5,375,610 3,410,390
Research and development 544,121 159,764
Depreciation and amortization 483,557 148,297
------------ ------------
Operating costs and expenses 8,949,027 5,673,059
------------ ------------
Operating income 4,962,304 1,595,168
Interest income 1,196,642 121,624
Interest expense (8,326) (9,331)
Income tax (expense)/benefit (2,399,718) 1,896,224
------------ ------------
Net income $ 3,750,902 $ 3,603,685
============ ============
Net income per common and common
equivalent share $ 0.25 $ 0.31
============ ============
Shares used in computing net income
per common and common equivalent
share 15,188,838 11,635,442
============ ============
</TABLE>
The accompanying notes are an integral part of this statement.
5
<PAGE> 6
MEDICIS PHARMACEUTICAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Three Months Ended
-----------------------------
September 30, September 30,
1997 1996
------------ ------------
<S> <C> <C>
Net income $ 3,750,902 $ 3,603,685
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 483,557 148,297
Accretion of discount on investments (88,489) --
Deferred income tax expense/(benefit) 2,715,000 (2,000,000)
Provision for doubtful accounts and returns (37,000) --
Other non-cash expenses 6,000 5,000
Gain on sale of available-for-sale investments (2,775) --
Change in operating assets and liabilities:
Inventories (1,337,391) 245,194
Accounts receivable (1,503,064) 536,765
Accounts payable 298,546 34,239
Accrued salaries and wages -- (204,750)
Accrued incentives (659,822) (450,604)
Accrued interest income (447,201) --
Accrued royalty 127,750 --
Other current liabilities (301,724) 211,142
Other current assets (517,916) (127,895)
------------ ------------
Net cash provided by operating activities 2,486,373 2,001,073
------------ ------------
Cash flows from investing activities:
Purchase of property and equipment (107,082) (9,997)
Payment of license agreement (615,750) (116,667)
Purchase of available-for-sale securities (23,219,374) --
Sale of available-for-sale securities 9,034,503 --
Maturity of available-for-sale securities 11,500,000 --
------------ ------------
Net cash used in investing activities (3,407,703) (126,664)
------------ ------------
Cash flows from financing activities:
Proceeds from the exercise of stock options 411,174 1,191,440
Payment of other non-current liabilities (20,889) (7,212)
------------ ------------
Net cash (used in)/provided by financing activities 390,285 1,184,228
------------ ------------
Net decrease in cash and cash equivalents (531,045) 3,058,637
Cash and cash equivalents at beginning of period 33,623,397 7,956,050
------------ ------------
Cash and cash equivalents at end of period $ 33,092,352 $ 11,014,687
------------ ------------
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest $ 6,453 $ 7,274
Taxes $ 248,074 $ 79,045
</TABLE>
The accompanying notes are an integral part of this statement.
6
<PAGE> 7
MEDICIS PHARMACEUTICAL CORPORATION
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
1. ORGANIZATION AND BASIS OF PRESENTATION
Medicis Pharmaceutical Corporation and its wholly-owned subsidiaries
("Medicis" or the "Company") is the leading independent pharmaceutical
company in the United States that develops, markets and sells
prescription, doctor dispensed and over-the-counter ("OTC") products and
procedures exclusively to treat dermatological conditions. Emphasizing the
clinical effectiveness, quality, affordability and cosmetic elegance of
its products, the Company has achieved a leading position in the treatment
of acne, acne-related conditions and psoriatic conditions using
prescription pharmaceuticals, while also offering the leading domestic OTC
fade cream product. The Company has built its business through the
successful introduction of the DYNACIN(R) and TRIAZ(R) products for the
treatment of acne, and the acquisition of the LIDEX(R) and SYNALAR(R)
cortico-steroid product lines and the ESOTERICA(R) fade cream product
line. Additionally, Medicis has formed a new business unit, TxSYSTEMS by
Medicis(TM), to market cosmetic dermatology treatments to dermatologists
nationwide for administration and dispensing to patients. The TxSYSTEMS by
Medicis(TM) business unit markets AFIRM(TM), a patented retinol cream, and
BETA-LIFTX(TM), a new skin treatment procedure.
The Financial Accounting Standards Board issued Statement No. 128,
"Earnings per Share", ("SFAS 128") which is required to be adopted in the
quarter ended December 31, 1997. At that time, reporting companies will be
required to change the method currently used to compute earnings per share
and to restate all prior periods. Under the new requirements for
calculating primary earnings per share, the dilutive effect of stock
options will be excluded. The impact would result in an increase in
primary earnings per share for the first quarter ended September 30, 1997
and September 30, 1996 of $0.01 and $0.03 per share, respectively. The
impact of SFAS 128 on the calculation of fully diluted earnings per share
for these quarters is not expected to be material.
The Financial Accounting Standards Board issued Statement No. 131,
"Disclosures About Segments of an Enterprise and Related Information,"
("SFAS 131") which establishes standards for the way that public business
enterprises report information about operating segments in annual
financial statements and requires that those enterprises report selected
information about operating segments in interim financial reports issued
to shareholders. It also establishes standards for related disclosures
about products and services, geographic areas, and major customers. SFAS
131 is effective for financial statements for fiscal years beginning after
December 15, 1997. The adoption of SFAS 131 will have no impact on the
Company's consolidated results of operations, financial condition or cash
flows.
Except as otherwise specified herein, all information in this Form 10-Q
has been adjusted to reflect a 3-for-2 stock split in the form of a 50%
stock dividend paid on March 28, 1997 to holders of record on March 17,
1997.
7
<PAGE> 8
Certain immaterial amounts on the face of the balance sheet have been
reclassified to conform with the current year's presentation.
The financial information is unaudited, but reflects all adjustments,
consisting only of normal recurring accruals, which are, in the opinion of
the Company's management, necessary to a fair statement of the results for
the interim periods presented. Interim results are not necessarily
indicative of results for a full year. The financial statements should be
read in conjunction with the Company's Annual Report on Form 10-K and the
Company's audited financial statements for the fiscal year ended June 30,
1997.
2. NET INCOME PER COMMON AND COMMON EQUIVALENT
Net income per common and common equivalent share have been computed by
using the weighted average number of shares outstanding and common
equivalent shares.
3. CONTINGENCIES
The Company and certain of its subsidiaries, from time to time, are
parties to certain actions and proceedings incident to their business.
Liability in the event of final adverse determinations in any of these
matters is either covered by insurance and/or established reserves or, in
the opinion of management and after consultation with counsel, should not,
in the aggregate, have a material adverse effect on the consolidated
financial position or results of operations of the Company and its
subsidiaries.
4. INVENTORIES
Although the Company utilizes third parties to manufacture and package
inventories held for sale, the Company takes title to certain inventories
and records the associated liability once inventories are manufactured.
Inventories are valued at the lower of cost or market as determined by net
realizable value using the first-in, first-out method. Inventories, net of
reserves, at September 30, 1997 and June 30, 1997 consist of the
following:
<TABLE>
<CAPTION>
September 30, 1997 June 30, 1997
------------------ -------------
<S> <C> <C>
Raw materials $ 551,713 $ 557,520
Work in process -- --
Finished goods 3,742,555 2,424,357
---------- ----------
Total inventories $4,294,268 $2,981,877
========== ==========
</TABLE>
8
<PAGE> 9
5. INCOME TAXES
Income taxes have been provided using the liability method in accordance
with Statement of Financial Accounting Standards No. 109, "Accounting for
Income Taxes." The provision for income taxes (recorded at an effective
rate of 39% for the quarter ended September 30, 1997) reflects
management's estimation of the effective tax rate expected to be
applicable for the full fiscal year. This estimate is reevaluated by
management each quarter based on estimated tax expenses for the year.
The income tax benefit recorded in the first quarter of fiscal 1997 is a
result of management's reduction of the valuation allowance to an amount
the Company believes appropriate. Accordingly, a credit to income tax
benefit was reflected in the quarter ended September 30, 1996
Consolidated Income Statement and the corresponding deferred tax asset on
the Company's Condensed Consolidated Balance Sheet.
At September 30, 1997, the Company took advantage of additional tax
deductions available relating to the exercise of non-qualified stock
options and disqualified dispositions of incentive stock options.
Accordingly, the Company recorded a $5.9 million increase to equity with a
corresponding $0.7 million reduction to taxes payable and a $5.2 million
increase to deferred tax assets. Quarterly adjustments for the exercise of
non-qualified stock options and disqualified dispositions of incentive
stock options may vary as they relate to the intentions of the option
holder.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following discussion should be read in conjunction with the attached
condensed consolidated financial statements and notes thereto and with the
Company's audited financial statements, notes to the consolidated
financial statements and Management's Discussion and Analysis of Financial
Condition and Results of Operations relating thereto included or
incorporated by reference in the Company's Annual Report on Form 10-K for
the fiscal year ended June 30, 1997.
The Company's Form 10-Q contains certain "forward looking statements"
within the meaning of the Private Securities Litigation Reform Act of
1995. In addition, from time to time, the Company or its representatives
have made or may make forward looking statements, orally or in writing.
Such forward looking statements involve known and unknown risks and
uncertainties. The Company's actual actions or results could differ
materially from those anticipated and these forward looking statements as
a result of certain factors including, but not limited to, those factors
discussed in the documents filed by the Company with the Securities and
Exchange Commission from time to time, including the Company's
Registration Statement on Form S-3 and the Company's Annual Report on Form
10-K for the fiscal year ended June 30, 1997. The Company undertakes no
obligation to update any forward looking statements.
9
<PAGE> 10
RESULTS OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 1997 COMPARED TO THE THREE MONTHS
ENDED SEPTEMBER 30, 1996
Net Sales
Net sales for the three months ended September 30, 1997 (the "first
quarter of fiscal 1998") increased 91.4%, or $6.6 million, to $13.9
million from $7.3 million for the three months ended September 30, 1996
(the "first quarter of fiscal 1997"). The Company's net sales increased in
the first quarter of fiscal 1998 primarily as a result of both unit and
dollar sales growth of the Company's prescription products, which include
the LIDEX(R) and SYNALAR(R) products acquired by the Company in February
1997. The Company's prescription products accounted for 88.0% of net sales
in the first quarter of fiscal 1998 and 85.4% in the first quarter of
fiscal 1997. The OTC and doctor-dispensed products accounted for 12.0% of
net sales in the first quarter of fiscal 1998 and 14.6% in the first
quarter of fiscal 1997. The Company continues to invest a majority of its
marketing funds in the Company's prescription products.
Gross Profit
Gross profit during the first quarter of fiscal 1998 increased 113.9%, or
$6.1 million, to $11.4 million from $5.3 million in the first quarter of
fiscal 1997. As a percentage of net sales, gross profit grew to 81.7% in
the first quarter of fiscal 1998 from 73.1% in the first quarter of fiscal
1997, primarily as a result of increased sales in the Company's higher
margin products, LIDEX(R), SYNALAR(R) and TRIAZ(R), and higher average
sales prices for the Company's DYNACIN(R) and ESOTERICA(R) products.
Selling, General and Administrative Expenses
Selling, general and administrative expenses in the first quarter of
fiscal 1998 increased 57.6%, or $2.0 million, to $5.4 million from $3.4
million in the first quarter of fiscal 1997, primarily due to the expenses
associated with sampling and administration of the LIDEX(R) and SYNALAR(R)
products acquired in February 1997, the introduction of two new products,
BETA-LIFTx(TM) and AFIRM(TM), the hiring of a dedicated 13-person sales
force to support the products through the Company's TxSYSTEMS by
MEDICIS(TM) business unit, launched in March 1997, and an increase in the
sampling and advertising of the Company's existing products.
Additionally, selling, general and administrative expenses increased due
to personnel costs attributable to a rise in full-time equivalent
employees, an increase in variable compensation commensurate with
increased sales volume, and cost of living salary adjustments. Selling,
general and administrative expenses in the first quarter of fiscal 1998
decreased 830 basis points as a percentage of sales to 38.6% from 46.9% in
the first quarter of fiscal 1997.
10
<PAGE> 11
Research and Development Expenses
Research and development expenses in the first quarter of fiscal 1998
increased 240.6%, or $384,000, to $544,000 from $160,000 in the first
quarter of fiscal 1997, primarily due to expansion of new product research
and development activities and an increase in costs associated with the
expanded clinical support of the Company's existing products.
Depreciation and Amortization Expenses
Depreciation and amortization expenses in the first quarter of fiscal 1998
increased 226.1%, or $335,000, to $484,000 from $149,000 in the first
quarter of fiscal 1997, primarily due to amortization of the purchase
price of the LIDEX(R) and SYNALAR(R) products acquired in February 1997.
Operating Income
Operating income during the first quarter of fiscal 1998 increased 211.1%,
or $3.4 million, to $5.0 million from $1.6 million in the first quarter of
fiscal 1997. This increase was primarily a result of higher sales volume,
coupled with an 8.6% increase in the Company's gross profit as a
percentage of sales and a decrease of 8.3% in selling, general and
administrative cost as a percentage of sales.
Interest Income
Interest income in the first quarter of fiscal 1998 increased 884.0%, or
$1.1 million, to $1.2 million from approximately $122,000 in the first
quarter of fiscal 1997, primarily due to higher cash equivalent and
short-term investment balances in the first quarter of fiscal 1998,
primarily as a result of the Company's public offering, and the Company's
cash flow from operations.
Income Tax (Expense)/Benefit
Income tax expense during the first quarter of fiscal 1998 increased $4.3
million to an expense of $2.4 million from a benefit of $1.9 million in
the first quarter of fiscal 1997. The provision for income taxes recorded
for the first quarter of fiscal 1998 reflects management's estimate of the
effective tax rate expected to be applicable for the full fiscal year.
This estimate is reevaluated by management each quarter based on forecasts
of income before taxes for the year. The Company's tax provision is
recorded at an effective tax rate of 39% for the first quarter of fiscal
1998. The income tax benefit recorded in the first quarter of fiscal 1997
is a result of management reducing the valuation allowance to an amount
the Company believes appropriate. Accordingly, a credit to income tax
benefit of $2.0 million was reflected in the first quarter of fiscal
1997's Consolidated Income Statement and the corresponding deferred tax
asset on the Company's Condensed Consolidated Balance Sheet.
11
<PAGE> 12
Net Income
Net income during the first quarter of fiscal 1998 increased approximately
4.1%, or approximately $147,000, to $3.7 million from $3.6 million from
the first quarter of fiscal 1997, primarily attributable to an increase in
sales volume, gross margin as a percentage of sales, lower operating
expenses as a percentage of sales, and interest income generated by higher
cash and cash equivalent balances reduced by an effective tax rate of
approximately 39%.
LIQUIDITY AND CAPITAL RESOURCES
At September 30, 1997 and June 30, 1997, the Company had cash, cash
equivalents and short-term investments of approximately $87.5 million and
$85.1 million, respectively. The Company's working capital was $105.3
million and $94.8 million at September 30, 1997 and June 30, 1997,
respectively. The increase in working capital is primarily attributable to
the Company's income from operations of approximately $5.0 million and an
increase in the Company's deferred tax asset of 3.2 million, primarily due
to the exercise of non-qualified stock options and disqualifying
dispositions of incentive stock options offset by a change in the
Company's net operating loss carryforwards related to the Company's income
before taxes.
At September 30, 1997 and June 30, 1997, the Company had inventories of
$4.3 million and $3.0 million, respectively. The increase in the Company's
inventory balance is primarily due to inventory held at the Company's
manufacturers which the Company records as inventory on its balance sheet.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibit
No. 11.1 Computation of Per Share Earnings
(b) No reports on Form 8-K have been filed during the quarter for which this
report is filed.
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.
MEDICIS PHARMACEUTICAL CORPORATION
Date: November 12, 1997 By: /s/ Jonah Shacknai
---------------------------------
Jonah Shacknai
Chairman and Chief Executive Officer
Date: November 12, 1997 By: /s/ Mark A. Prygocki, Sr.
---------------------------------
Mark A. Prygocki, Sr.
Chief Financial Officer and Treasurer
12
<PAGE> 1
EXHIBIT 11.1
COMPUTATION OF PER SHARE EARNINGS
(Thousands except per share amounts)
<TABLE>
<CAPTION>
Three Months
Ended September 30,
1997 1996
------- -------
<S> <C> <C>
PRIMARY
Average shares outstanding 14,313 10,582
Net effect of dilutive stock options -
based on the treasury stock method
using average market price 876 1,053
------- -------
TOTAL 15,189 11,635
------- -------
Net income $ 3,751 $ 3,604
------- -------
Per share amount $ 0.25 $ 0.31
------- -------
FULLY DILUTED
Average shares outstanding 14,313 10,582
Net effect of dilutive stock options -
based on the treasury stock method
using the quarter-end market price,
if higher than the average market price 915 1,161
------- -------
TOTAL 15,228 11,743
------- -------
Net income $ 3,751 $ 3,604
------- -------
Per share amount $ 0.25 $ 0.31
------- -------
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-START> JUL-01-1997
<PERIOD-END> SEP-30-1997
<EXCHANGE-RATE> 1
<CASH> 33,092,352
<SECURITIES> 54,358,701
<RECEIVABLES> 9,005,904
<ALLOWANCES> 1,088,000
<INVENTORY> 4,294,268
<CURRENT-ASSETS> 112,869,847
<PP&E> 1,030,433
<DEPRECIATION> 255,226
<TOTAL-ASSETS> 149,504,049
<CURRENT-LIABILITIES> 7,603,994
<BONDS> 233,834
0
0
<COMMON> 200,551
<OTHER-SE> 141,666,221
<TOTAL-LIABILITY-AND-EQUITY> 149,504,049
<SALES> 13,911,331
<TOTAL-REVENUES> 13,911,331
<CGS> 2,545,739
<TOTAL-COSTS> 2,545,739
<OTHER-EXPENSES> 6,403,288
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (1,188,316)
<INCOME-PRETAX> 6,150,620
<INCOME-TAX> 2,399,718
<INCOME-CONTINUING> 3,750,902
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,750,902
<EPS-PRIMARY> .25
<EPS-DILUTED> .25
</TABLE>
