UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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, 1998
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: 000-19320
Ag Services of America, Inc.
(Exact name of registrant as specified in its charter)
Iowa 42-1264455
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2302 West First Street, Cedar Falls, Iowa 50613
(Address of principal executive offices) (Zip Code)
(319) 277-0261
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last
report.)
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.
[X] Yes [ ] No
5,203,004 common shares were outstanding as of July 10, 1998.
<PAGE>
AG SERVICES OF AMERICA, INC.
INDEX
Page
PART I. FINANCIAL INFORMATION
Item 1. Financial statements:
Consolidated condensed balance sheets, May 31, 1998
(unaudited) and February 28, 1998 1
Unaudited consolidated condensed statements of income,
three months ended May 31, 1998 and 1997 2
Unaudited consolidated condensed statements of cash
flows, three months ended May 31, 1998 and 1997 3
Consolidated statement of stockholders' equity,
three months ended May 31, 1998 4
Notes to consolidated condensed financial statements
(unaudited) 5-7
Item 2. Management's discussion and analysis of
financial condition and results of operations 8-12
PART II. OTHER INFORMATION
Item 6. Exhibits and reports on form 8-K: 13
(a) Exhibits
(11) Statement re computation of per share
earnings 14
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
AG SERVICES OF AMERICA, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Dollars in thousands)
<CAPTION>
May 31, February 28
ASSETS 1998 1998*
(Unaudited)
----------- -----------
<S> <C> <C>
CURRENT ASSETS
Cash $1,454 $174
Customer notes receivable, less allowance
for doubtful notes and reserve for
discounts May 31, 1998 $5,904;
February 28, 1998 $2,660 176,176 71,379
Accounts receivable 242 422
Inventories 1,331 2,972
Foreclosed assets held for sale 73 144
Deferred income taxes, net 293 293
Organization costs 22 0
Other current assets 620 1,999
---------- ----------
Total current assets $180,211 $77,383
---------- ----------
LONG-TERM RECEIVABLES AND OTHER ASSETS
Customer notes receivable, less allowance
for doubtful notes May 31, 1998 $659;
February 28, 1998 $1,340 $16,961 $13,696
Foreclosed assets held for resale 48 48
Loan origination fees, less accumulated
amortization May 31, 1998 $142,500;
February 28, 1998 $114,000 429 457
Deferred income taxes, net 124 124
---------- ----------
$17,562 $14,325
---------- ----------
EQUIPMENT, less accumulated depreciation
May 31, 1998 $1,132,094; February 28, 1998
$1,059,000 $1,608 $1,540
---------- ----------
$199,381 $93,248
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable, including current maturities $121,820 $39,328
Outstanding checks in excess of
bank balances 6,591 1,793
Accounts payable 15,692 1,654
Accrued expenses 1,720 802
Income taxes payable 536 0
---------- ----------
Total current liabilities $146,359 $43,577
---------- ----------
LONG-TERM LIABILITIES
Notes payable, less current maturities $6,650 $5,915
---------- ----------
STOCKHOLDERS' EQUITY
Capital stock $22,494 $22,307
Retained earnings 23,878 21,449
---------- ----------
$46,372 $43,756
---------- ----------
$199,381 $93,248
========== ==========
<CAPTION>
*Condensed from Audited Financial Statements.
<FN>
See notes to Consolidated Condensed Financial Statements.
</TABLE>
-1-
<PAGE>
<TABLE>
AG SERVICES OF AMERICA, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF INCOME
Three Months Ended May 31, 1998 and 1997
(Dollars in Thousands, Except Per Share Amounts)
<CAPTION>
1998 1997
---------- ----------
<S> <C> <C>
Net revenues:
Farm inputs $97,720 $78,339
Financing income 3,809 2,436
---------- ----------
$101,529 $80,775
---------- ----------
Cost of revenues:
Farm inputs $92,362 $73,953
Financing expense 1,504 810
Provision for doubtful notes 1,827 1,257
---------- ----------
$95,693 $76,020
---------- ----------
Income before operating expenses
and income taxes $5,836 $4,755
Operating expenses 2,044 1,811
---------- ----------
Income before income taxes $3,792 $2,944
Federal and state income taxes 1,363 1,022
---------- ----------
Net income $2,429 $1,922
========== ==========
Earnings per share
Basic $0.47 $0.37
========== ==========
Diluted $0.45 $0.36
========== ==========
Weighted average shares
Basic 5,192 5,142
========== ==========
Diluted 5,456 5,413
========== ==========
<FN>
See Notes to Consolidated Condensed Financial Statements.
</TABLE>
-2-
<PAGE>
<TABLE>
AG SERVICES OF AMERICA, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
Three Months Ended May 31, 1998 and 1997
(Dollars in Thousands)
<CAPTION>
1998 1997
---------- ----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $2,429 $1,922
Adjustments to reconcile net income
to net cash (used in) operating activities:
Depreciation 82 56
Amortization 28 28
Changes in assets and liabilities (89,372) (56,227)
---------- ----------
Net cash (used in) operating activities ($86,833) ($54,221)
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment (149) (43)
Decrease in foreclosed assets held for sale 70 4
---------- ----------
Net cash (used in) investing activities ($79) ($39)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short term borrowings $101,446 $50,374
Principal payments on short term borrowings (18,953) (505)
Proceeds from long term borrowings 735 --
Increase in excess of outstanding checks
over bank balance 4,798 4,667
(Increase) in loan origination fees -- (571)
Proceeds from issuance of capital stock
upon exercise of options 187 93
Proceeds from issuance of capital stock
under stock purchase plan -- 4
---------- ----------
Net cash (used in) financing activities $88,213 $54,062
---------- ----------
Increase (Decrease) in cash $1,301 ($198)
CASH
Beginning 174 880
---------- ----------
Ending $1,475 $682
========== ==========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash payments for:
Interest $742 $491
Income taxes $71 $109
<FN>
See notes to Consolidated Condensed Financial Statements
</TABLE>
-3-
<PAGE>
<TABLE>
AG SERVICES OF AMERICA, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Quarter Ended May 31, 1998
(Unaudited)
(Dollars in thousands)
<CAPTION>
Capital Stock
-----------------------
Shares Retained
Issued Amount Earnings Total
---------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Balance,
February 28, 1998 $5,177,154 $22,307,485 $21,448,874 $43,756,359
Net income -- -- 2,429,438 2,429,438
Issuance of 22,150
shares of capital
stock upon the
exercise of
options 22,150 186,956 -- 209,106
---------- ----------- ----------- -----------
Balance, May 31, 1998 $5,177,154 $22,307,485 $23,878,312 $46,185,797
========== =========== =========== ===========
<FN>
See Notes to Consolidated Condensed Financial Statements
</TABLE>
<PAGE>
AG SERVICES OF AMERICA, INC.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
Note 1. Basis of Presentation
The accompanying unaudited consolidated condensed financial statements have
been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of
Regulation S-X. Certain information and footnote disclosures normally included
in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted. It is suggested these
interim consolidated condensed financial statements be read in conjunction
with the financial statements and notes thereto included in the Company's
Annual Report for the year ended February 28, 1998. In the opinion of
management, all adjustments (which include only normal recurring adjustments)
necessary for a fair presentation of the financial position, results of
operations and cash flows for the interim periods presented have been made.
Operating results for the three month period ended May 31, 1998 are not
necessarily indicative of the results that may be expected for the year ending
February 28, 1999.
Principles of Consolidation:
The consolidated financial statements include the accounts of Ag Services of
America, Inc. (the Company) and its wholly owned subsidiary, Ag Acceptance
Corporation. All material intercompany balances and transactions have been
eliminated in consolidation.
According to the terms related to the asset backed securitized financing
program as described in Note 3 of the consolidated condensed financial
statements, the Company formed Ag Acceptance Corporation, a wholly owned,
special purpose corporation.
Unless otherwise noted, all amounts present are in thousands except per share
amounts.
Note 2. Commitments and Contingencies
Commitments:
In the normal course of business, the Company makes various commitments that
are not reflected in the accompanying consolidated condensed financial
statements. These include various commitments to
- -5-
<PAGE>
extend credit to customers. At May 31, 1998 and February 28, 1998 the Company
had approximately $80,569 and $69,151, respectively, in commitments to supply
farm inputs. No material losses or liquidity demands are anticipated as a
result of these commitments.
Contingencies:
The Company is named in lawsuits in the ordinary course of business. Counsel
for the Company have advised the Company, while the outcome of various legal
proceedings is not certain, it is unlikely that these proceedings will result
in any recovery which will materially affect the financial position or operating
results of the Company.
The availability of lines of credit to finance operations and the existence of
a multi-peril crop insurance program are essential to the Company's operations.
If the federal multi-peril crop insurance program currently in existence were
terminated or negatively modified and no comparable private or government
program were established, this could have a material adverse effect on the
Company's future operations. The government has from time to time evaluated the
federal multi-peril insurance program and is likely to review the program in
the future, and there can be no assurance about the outcome of such evaluations.
Note 3. Pledged Assets and Related Debt
On March 11, 1997, the Company implemented an asset backed securitized financing
program with a maximum available borrowing amount of $135 million. This
facility was amended and increased to $205 million in March of 1998. Under the
terms of the five-year facility, the Company sells and may continue to sell or
contribute certain notes receivable to Ag Acceptance Corporation ("Ag
Acceptance"), a newly formed, wholly owned, special purpose subsidiary of the
Company. Ag Acceptance pledges its interest in these notes receivable to a
commercial-paper market conduit entity and incurs interest at variable rates in
the commercial paper market. The agreement contains various restrictive cove-
nants including, among others, restrictions on mergers, issuance of stock,
declaration or payment of dividends, transactions with affiliates and requires
the Company to maintain certain levels of equity and pretax earnings.
Advances under the facility are made subject to portfolio performance, financial
covenant restrictions and borrowing base
- -6-
<PAGE>
calculations. At May 31, 1998, the Company had a maximum amount available under
the asset backed securitized financing program of approximately $3.1 million,
based on borrowing base computations as provided by the agreement.
In conjunction with the securitized financing program, Ag Services maintains
an $8.5 million revolving bank line of credit through fiscal 1999. The line
of credit is accessible to cover any potential deficiencies in available funds
financed through the securitization program. At May 31, 1998 the Company had
a maximum amount available under the revolving line of credit of $4.5 million,
based on the borrowing base computation as provided by the agreement.
On April 23, 1998, the Company negotiated an additional bank line of credit with
a maximum available borrowing amount of $20 million. The line of credit is
accessible to cover the Company's funding requirements for its intermediate
loan program. The agreement has a two year term ending February 28, 2000. At
May 31, 1998, approximately $1.9 million was available based on the borrowing
base computation as provided by the agreement.
Note 4. Earnings Per Share
In 1997, the Financial Accounting Standards Board issued Statement No. 128,
"Earnings Per Share." Statement No. 128 replaced the calculation of primary and
fully diluted earnings per share with basic and diluted earnings per share.
Basic earnings per share is computed by dividing net income available to common
stockholders by the weighted average number of shares outstanding. In computing
diluted earnings per share, the dilutive effect of stock options during the
periods presented as well as the effect of contingently issuable shares also
increase the weighted average number of shares.
The Company initially applied statement No. 128 for the year ended February 28,
1998 and has restated all per share information for prior periods to conform to
Statement No. 128.
- -7-
<PAGE>
AG SERVICES OF AMERICA, INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
The following table sets forth percentages of net revenues represented by the
selected items in the unaudited condensed statements of income of the Company
for the three months ended May 31, 1998 and 1997. In the opinion of management,
all normal and recurring adjustments necessary for a fair statement of the
results for such periods have been included. The operating results for any
period are not necessarily indicative of results for any future period.
Percentage
of Net Revenues
---------------
Three Months Ended
May 31,
------------------
1998 1997
-------- --------
Net Revenues:
Farm inputs 96.2% 97.0%
Financing Income 3.8% 3.0%
------- -------
100.0% 100.0%
------- -------
Cost of Revenues:
Farm inputs 91.0% 91.5%
Financing expense 1.5% 1.0%
Provision for doubtful notes 1.8% 1.6%
------- -------
94.3% 94.1%
------- -------
Income before operating
expenses and income taxes 5.7% 5.9%
Operating expenses 2.0% 2.2%
------- -------
Income before income taxes 3.7% 3.7%
Federal and state income taxes 1.3% 1.3%
------- -------
Net income 2.4% 2.4%
======= =======
Net Revenues:
Net revenues increased $20.7 million or 25.7% during the three months ended
May 31, 1998, compared with the three months ended May 31, 1997. The Company
reached this record level through increased market penetration in the
thirty-state market area. Financing income as a percentage of net income grew
to 3.8% for the three months ended May 31, 1998 from 3.0% the previous year.
This growth was a result of the volume of lending under the Company's new
servicing and marketing agreement as well as growth
- -8-
<PAGE>
experienced under the Company's Intermediate Term Financing Program.
Cost of Revenues:
The total cost of revenues increased slightly to 94.3% of net revenues for the
three months ended May 31, 1998 from 94.1% of net revenues for the three months
ended May 31, 1997. The increase in total cost of revenues as a percentage of
net revenues was attributable to the decrease in gross margin on the sale of
farm inputs but was partially offset by an increase in gross margin on financing
income as a percentage of net revenues. The gross margin on the sale of farm
inputs, alone, decreased to 5.5% for the three months ended May 31, 1998 from
5.6% for the three months ended May 31, 1997. The decrease in gross margin
on the sale of farm inputs was a result of slight changes in the product mix
from higher to lower margin farm inputs. The gross margin on financing income,
alone, decreased to 60.5% for the three months ended May 31, 1998 from 66.8%
for the three months ended May 31, 1997. The decrease in gross margin on
financing income was the result of increase leverage. The provision for
doubtful notes was 1.8% and 1.6% of net revenues for the three months ended
May 31, 1998 and 1997, respectively.
The increase is a result of the provision carried on customer notes originated
under the servicing and marketing agreement. No farm input revenues are
recorded under this straight financing agreement. The Company's portfolio
quality continues to improve with market penetration in the area of larger more
financially stable farm operators.
Operating Expenses:
Operating expenses decreased to 2.0% of net revenues for the three months ended
May 31, 1998 from 2.2% of net revenues for the three months ended May 31, 1997.
The decrease is the result of operating expenses increasing at a lower rate
(12.9%) than net revenues (25.7%) for the three months ended May 31, 1998 due to
economies experienced as a result of the Company's improved efficiencies. The
increase in operating expense is attributed primarily to the Company's growth.
Payroll and payroll related expenses increased to $1,429 for the three months
ended May 31, 1998 from $1,201 for the three months ended May 31, 1997.
Net Income:
Net income increased 26.4% to $2,429 for the three months ended May 31, 1998
from $1,922 for the three months ended May 31, 1997. The increase is
attributable to the increase in net revenues and financing income and the
decrease in operating expenses as a percentage of net revenues.
- -9-
<PAGE>
Inflation:
The Company does not believe net revenues and income from continuing operations
were significantly impacted by inflation or changing prices in fiscal 1998 or
the first quarter of fiscal 1999.
Seasonality:
The Company's revenues and income are directly related to the growing cycle for
crops. Accordingly, quarterly revenues and income vary during each fiscal year.
The following table shows the Company's quarterly net revenues and net income
for fiscal 1998 and the first quarter of fiscal 1999. This information is
derived from unaudited consolidated financial statements which include, in the
opinion of management, all normal and recurring adjustments which management
consider necessary for a fair statement of results of those periods. The
operating results for any quarter are not necessarily indicative of the results
for any future period.
Fiscal 1999 Quarter Ended
May 31 August 31 November 30 February 28
------ --------- ----------- -----------
(Dollars in thousands)
Net revenues $101,529
Net income $2,429
Fiscal 1998 Quarter Ended
May 31 August 31 November 30 February 28
------ --------- ----------- -----------
(Dollars in thousands)
Net revenues $80,775 $58,943 $14,225 $32,130
Net income $1,922 $1,935 $1,018 $306
Except for the Eastern corn belt, the Company's primary market area experienced
a normal 1998 crop planting season, as a result, revenues and earnings have
progressed as planned.
Liquidity and Capital Resources:
At May 31, 1998, the Company had working capital of $33,852 an increase of
$6,224 compared to a year ago and an increase of $46 since February 28, 1998.
The components of this net increase, since February 28, 1998, were (i) $1,301
resulting from operating activities, consisting of approximately $2,429 in net
income, $82 in depreciation, $28 in amortization, and the remainder from the net
change in other working capital items, (ii) capital expenditures of
approximately $149 related to the acquisition of equipment and furniture, and
(iii) net proceeds of $187 from the issuance of common stock and upon stock
options exercised.
- -10-
<PAGE>
On March 11, 1997, the Company implemented an asset backed securitized financing
program with a maximum available borrowing amount of $135 million. This
facility was amended and increased to $205 million in March of 1998. Under the
terms of the five year facility, the Company sells and may continue to sell or
contribute certain notes receivable to Ag Acceptance Corporation ("Ag
Acceptance"), a newly formed, wholly owned, special purpose subsidiary of the
Company. Ag Acceptance pledges its interest in these notes receivable to a
commercial-paper market conduit entity and incurs interest at variable rates
in the commercial paper market. The agreement contains various restrictive
covenants, including, among others, restrictions on mergers, issuance
of stock, declaration or payment of dividends, transactions with affiliates, and
requires the Company to maintain certain levels of equity and pretax earnings.
Advances under the facility are made subject to portfolio performance, financial
covenant restrictions and borrowing base calculations. At May 31, 1998, the
Company had a maximum amount available under the asset backed securitized
financing program of approximately $3.1 million, based on borrowing base
computations as provided by the agreement.
In conjunction with the securitized financing program, Ag Services will maintain
an $8.5 million revolving bank line of credit in fiscal 1999. The line of
credit is accessible to cover any potential deficiencies in available funds
financed through the securitization program. All borrowings are collateralized
by substantially all assets of the Company. The agreement requires that the
total outstanding borrowings be repaid in full for 10 consecutive days during
the Company's fiscal second quarter. The agreement contains various restrictive
covenants, including, among others, restrictions on mergers, issuance of stock,
declaration or payment of dividends, loans to stockholders, and requires the
Company to maintain certain levels of equity and pretax earnings. At May 31,
1998, approximately $4.5 million was available based on the borrowing base
computation as provided by the agreement.
On April 23, 1998, the Company negotiated an additional bank line of credit with
a maximum available borrowing amount of $20 million. The line of credit is
accessible to cover the Company's funding requirements for its intermediate loan
program. The terms of the two year agreement allow for three interest rate
alternatives, including (i) variable base rate advances requiring monthly
interest payments at 0.5% above the bank's prime rate, (ii) variable rate
advances requiring monthly interest payments at 2.5% above Fed Fund rates, or
(iii) fixed rate advances requiring interest payments upon maturity at 2.0%
above LIBOR for 30, 60, or 90 day maturities. All borrowings are collateralized
by substantially all assets of the company. The agreement contains various
restrictive covenants, including, among others, restrictions on mergers,
issuance of stock, declaration or payment of dividends, loans to stockholders,
and requires the Company to maintain certain levels of equity and pretax
earnings. These
- -11-
<PAGE>
restrictions are in effect unless the bank's written consent is obtained.
Advances under the line of credit agreement are also subject to portfolio
performance, financial covenant restrictions, and borrowing base calculations.
At May 31, 1998, approximately $1.9 million was available based on the borrowing
base computation as provided by the agreement.
Management believes that the financial resources available to it, including its
asset backed securitization program, its bank lines of credit, trade credit, its
equity, and internally generated funds, will be sufficient to finance the
Company and its operations in the foreseeable future. The Company currently has
no significant capital commitments.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995
Information contained in this report, other than historical information, should
be considered forward looking which reflect Management's current views of future
events and financial performance that involve a number of risks and
uncertainties. The factors that could cause actual results to differ materially
include, but are not limited to, the following: general economic conditions
within the agriculture industry; competitive factors and pricing pressures;
changes in product mix; changes in the seasonality of demand patterns; changes
in weather conditions; changes in agricultural regulations; and other risks
detailed in the Company's Securities and Exchange Commission filings.
- -12-
<PAGE>
AG SERVICES OF AMERICA, INC.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
(11) Statement re computation of per share earnings is attached.
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the period covered by this
report.
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.
AG SERVICES OF AMERICA, INC.
----------------------------
(Registrant)
/s/ Brad D. Schlotfeldt
----------------------------
Brad D. Schlotfeldt
Vice President of Finance & Treasurer
(Principal Financial & Accounting Officer)
Date: July 15, 1998
- -13-
<PAGE>
<TABLE>
AG SERVICES OF AMERICA, INC.
EXHIBIT 11
STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS
<CAPTION>
Three Months Ended
May 31,
------------------
1998 1997
------ ------
<S> <C> <C>
Computation of weighted average number
of basic shares:
Basic:
Common shares outstanding at
beginning of the period 5,177,154 5,135,719
Weighted average number of shares
issued during the period 14,797 6,296
---------- ----------
Weighted average shares outstanding
(basic) 5,191,951 5,142,015
========== ==========
Net income $2,429,438 $1,922,245
========== ==========
Basic earnings per share $0.47 $0.37
========== ==========
Diluted:
Common shares outstanding at
beginning of the period 5,177,154 5,135,719
Weighted average number of shares
issued during the period 14,797 6,296
Weighted average of potential dilutive
shares computed using the treasury
stock method using average market
price during the period:
Options (1) 263,692 271,074
---------- ----------
Weighted average number of common and
common equivalent shares 5,455,643 5,413,089
========== ==========
Net income $2,429,438 $1,922,245
========== ==========
Diluted earnings per share $0.45 $0.36
========== ==========
<CAPTION>
(1) Some of the stock options have not been included because they are
antidilutive.
</TABLE>
14
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> FEB-28-1999
<PERIOD-END> MAY-31-1998
<CASH> 1,453,901
<SECURITIES> 0
<RECEIVABLES> 199,942,128
<ALLOWANCES> 6,563,000
<INVENTORY> 1,330,945
<CURRENT-ASSETS> 180,211,417
<PP&E> 2,739,629
<DEPRECIATION> 1,132,094
<TOTAL-ASSETS> 199,380,823
<CURRENT-LIABILITIES> 146,358,070
<BONDS> 0
0
0
<COMMON> 22,494,441
<OTHER-SE> 23,878,312
<TOTAL-LIABILITY-AND-EQUITY> 199,380,823
<SALES> 97,720,358
<TOTAL-REVENUES> 101,528,948
<CGS> 92,361,480
<TOTAL-COSTS> 92,361,480
<OTHER-EXPENSES> 2,044,420
<LOSS-PROVISION> 1,826,645
<INTEREST-EXPENSE> 1,503,643
<INCOME-PRETAX> 3,792,785
<INCOME-TAX> 1,363,347
<INCOME-CONTINUING> 2,429,438
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,429,438
<EPS-PRIMARY> .47
<EPS-DILUTED> .45
</TABLE>
