<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended Commission File
March 31, 1998 Number 1-3552
- --------------------- ---------------
SCOPE INDUSTRIES
------------------------------------------------------
(Exact name of Registrant as specified in its charter)
California 95-1240976
- ------------------------------- ----------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
233 Wilshire Blvd., Ste.310, Santa Monica, CA 90401
- --------------------------------------------- -----
(Address of principal executive office) (ZIP Code)
Registrant's telephone number, including area code (310) 458-1574
--------------
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 preceeding 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 April 21, 1998
- -------------------------- -----------------------------
Common Stock, no par value 1,125,342
<PAGE> 2
SCOPE INDUSTRIES AND SUBSIDIARIES
INDEX
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Part I. Financial Information:
Consolidated Balance Sheets -
March 31, 1998 and June 30, 1997 3
Consolidated Statements of Income -
Three Months Ended
March 31, 1998 and 1997 4
Consolidated Statements of Income -
Nine Months Ended
March 31, 1998 and 1997 5
Consolidated Statements of Cash Flows -
Nine Months Ended
March 31, 1998 and 1997 6
Notes to Consolidated Financial Statements 7
Management's Discussion and Analysis of
Results of Operations and
Financial Condition 10
Part II. Other Information:
Item 2. Increases and Decreases in
Outstanding Securities and
Indebtedness 13
Item 6. Exhibits and Reports on Form 8-K 13
Signatures 13
</TABLE>
-2-
<PAGE> 3
PART I. FINANCIAL INFORMATION
SCOPE INDUSTRIES AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
MARCH 31 JUNE 30
1998 1997
----------- -----------
(UNAUDITED) (AUDITED)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 4,484,798 $ 5,946,050
Treasury bills (par value $33,500,000 at
March 31, 1998 and $24,000,000 at
June 30, 1997) 32,597,798 23,540,939
Accounts and notes receivable, less allowance
for doubtful accounts of $176,769 at March
31, 1998 and $159,167 at June 30, 1997 2,857,836 1,637,066
Inventories 467,127 584,401
Deferred income taxes 705,000 675,000
Prepaid expenses and other current assets 390,939 379,654
----------- -----------
TOTAL CURRENT ASSETS 41,503,498 32,763,110
----------- -----------
NOTES RECEIVABLE 1,059,165 232,276
----------- -----------
PROPERTY AND EQUIPMENT:
Machinery and equipment 23,272,211 22,551,992
Land, buildings and improvements 10,226,285 9,652,554
----------- -----------
33,498,496 32,204,546
Less accumulated depreciation and amortization 23,065,230 22,016,611
----------- -----------
10,433,266 10,187,935
----------- -----------
OTHER ASSETS:
Deferred charges and other assets 4,256 256,006
Investments available for sale-at fair value 31,800,319 15,539,706
Other equity investments-at cost 1,006,000 2,505,000
----------- -----------
32,810,575 18,300,712
----------- -----------
$85,806,504 $61,484,033
=========== ===========
LIABILITIES AND SHAREOWNERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 814,752 $ 1,104,205
Other accrued liabilities 1,288,143 1,255,321
Accrued payroll and related employee benefits 869,118 940,631
Income taxes payable 3,205,510 534,231
----------- -----------
TOTAL CURRENT LIABILITIES 6,177,523 3,834,388
----------- -----------
DEFERRED INCOME TAXES 6,250,000
----------- -----------
12,427,523 3,834,388
----------- -----------
SHAREOWNERS' EQUITY:
Common stock, no par value, 5,000,000 shares
authorized; shares issued and outstanding
March 31, 1998 1,130,352
June 30, 1997 1,168,665 4,138,462 4,138,462
Retained earnings 51,306,659 45,513,699
Net unrealized gain on investments 17,933,860 7,997,484
----------- -----------
73,378,981 57,649,645
----------- -----------
$85,806,504 $61,484,033
=========== ===========
</TABLE>
The accompanying notes are an integral part of these statements.
-3-
<PAGE> 4
SCOPE INDUSTRIES AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31
----------------------------
1998 1997
----------- -----------
<S> <C> <C>
REVENUES:
Sales $ 4,709,027 $ 5,473,282
Vocational school revenues 1,136,429 1,129,391
----------- -----------
5,845,456 6,602,673
----------- -----------
OPERATING COSTS AND EXPENSES:
Cost of sales 3,433,989 3,740,035
Vocational school expenses 868,334 882,964
Depreciation and amortization 498,676 533,618
General and administrative 1,023,830 879,965
----------- -----------
5,824,829 6,036,582
----------- -----------
20,627 566,091
Investment and other income 8,791,385 2,562,004
----------- -----------
Income before income taxes 8,812,012 3,128,095
Provision (benefit) for income taxes 3,460,000 (640,000)
----------- -----------
NET INCOME $ 5,352,012 $ 3,768,095
=========== ===========
NET INCOME PER SHARE - BASIC $ 4.73 $ 3.18
NET INCOME PER SHARE - DILUTED $ 4.69 $ 3.15
Average shares outstanding - Basic 1,132,002 1,186,690
Dilutive effect of stock options 9,324 7,963
----------- -----------
Average shares outstanding - Diluted 1,141,326 1,194,653
</TABLE>
The accompanying notes are an integral part of these statements.
-4-
<PAGE> 5
SCOPE INDUSTRIES AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
MARCH 31
----------------------------
1998 1997
----------- -----------
<S> <C> <C>
REVENUES:
Sales $15,775,574 $20,020,116
Vocational school revenues 3,429,603 3,410,966
----------- -----------
19,205,177 23,431,082
----------- -----------
OPERATING COSTS AND EXPENSES:
Cost of sales 11,098,539 12,005,375
Vocational school expenses 2,654,003 2,594,839
Depreciation and amortization 1,534,372 1,582,453
General and administrative 3,090,113 2,877,687
----------- -----------
18,377,027 19,060,354
----------- -----------
828,150 4,370,728
Investment and other income 13,805,497 19,033,221
----------- -----------
Income before income taxes 14,633,647 23,403,949
Provision for income taxes 5,665,000 5,450,000
----------- -----------
NET INCOME $ 8,968,647 $17,953,949
=========== ===========
NET INCOME PER SHARE - BASIC $ 7.84 $ 15.08
NET INCOME PER SHARE - DILUTED $ 7.78 $ 15.00
Average shares outstanding - Basic 1,143,706 1,190,325
Dilutive effect of stock options 9,093 6,874
----------- -----------
Average shares outstanding - Diluted 1,152,799 1,197,199
Cash dividends declared per share $ 1.00 $ 1.25
</TABLE>
The accompanying notes are an integral part of these statements.
-5-
<PAGE> 6
SCOPE INDUSTRIES AND SUBSDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
MARCH 31
-------------------------------
1998 1997
------------ ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 8,968,647 $ 17,953,949
Adjustments to reconcile net income to net
cash flows from operating activities:
Depreciation and amortization 1,534,372 1,582,453
Gains on investments available for sale (12,432,382) (17,309,726)
Gains on sale of equipment (4,055) (3,952)
Deferred income taxes 30,000 (2,115,000)
Changes in operating assets and liabilities:
Accounts and notes receivable (1,388,859) 1,172,610
Inventories 117,274 (29,364)
Prepaid expenses and other current assets (11,285) 110,561
Accounts payable and accrued liabilities (328,144) (929,528)
Income taxes payable 2,671,279 1,243,589
Other assets 16,750 39,552
------------ ------------
Net cash flows from (used in) operating activities (826,403) 1,715,144
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of U.S. Treasury bills (32,056,859) (29,323,899)
Maturities of U.S. Treasury bills 23,000,000 8,035,000
Purchase of property and equipment (1,891,716) (1,099,496)
Disposition of property and equipment 116,068 22,846
Purchase of long-term notes receivable (658,800)
Purchase of investments available for sale (334,702) (3,181,872)
Purchase of other equity investments (1,001,000)
Disposition of investments available for sale 15,367,847 27,497,783
------------ ------------
Net cash flows from investing activities 2,540,838 1,950,362
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends to shareowners (1,133,352) (1,491,132)
Repurchases of common stock (2,042,335) (1,777,543)
Proceeds from stock options exercised 119,000
Change in bank overdraft (159,864)
------------ ------------
Net cash used in financing activities (3,175,687) (3,309,539)
------------ ------------
Net change in cash and cash equivalents (1,461,252) 355,967
Cash and cash equivalents at beginning
of period 5,946,050 1,721,939
------------ ------------
Cash and cash equivalents at end of period $ 4,484,798 $ 2,077,906
============ ============
Noncash investing transaction:
Acquired stock of OSI Systems, Inc. in
exchange for cancellation of a loan by
the exercise of warrants issued as a
condition of the loan $ 2,500,000
============
</TABLE>
The accompanying notes are an integral part of these statements.
-6-
<PAGE> 7
SCOPE INDUSTRIES AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
MARCH 31, 1998
1. In the opinion of the Registrant, the accompanying unaudited
consolidated financial statements contain all adjustments (consisting of
only normal recurring accruals) necessary to present fairly Scope
Industries' financial position as of March 31, 1998 and June 30, 1997,
and the results of its operations for the three and nine months ended
March 31, 1998 and 1997. The accounting policies followed by the Company
are set forth in Note 1 of its financial statements in its 1997 Annual
Report which is incorporated by reference on Form 10-K.
2. The Financial Accounting Standards Board has issued Statement of
Financial Accounting Standards (SFAS) No. 128, "Earnings Per Share."
SFAS 128 requires the disclosure of basic earnings per share which
replaces primary earnings per share, and diluted earnings per share,
which replaces fully diluted earnings per share. Primary earnings per
share is based on the weighted average number of shares of common stock
outstanding and the dilutive effect of options and other common stock
equivalents. Basic earnings per share does not consider any dilution.
Diluted earnings per share is similar to fully diluted earnings per
share, which considers all potentially dilutive securities.
SFAS 128 became effective for the Registrant with its December 31, 1997
financial statements. All earnings per share data presented for prior
periods has been restated to conform to the new standard.
Diluted earnings per share is less than basic earnings per share because
the assumed increase in the average number of common shares outstanding
resulting from the assumed exercise of outstanding options in periods in
which the average market price of the Registrant's common shares
exceeded the related option exercise prices.
3. Quarterly results of operations are not necessarily indicative of the
results to be expected for the full year.
4. Treasury bills consisted of the following: (at adjusted cost which
approximates fair value)
<TABLE>
<CAPTION>
March 31 June 30
1998 1997
----------- ------------
<S> <C> <C>
Held to maturity $ $ 22,591,800
Available for sale 32,597,798 949,139
----------- ------------
$32,597,798 $23,540,939
=========== ============
</TABLE>
5. Inventories consisted of the following:
<TABLE>
<CAPTION>
March 31 June 30
1998 1997
----------- ----------
<S> <C> <C>
Finished products $ 196,597 $ 255,850
Raw materials 83,654 134,968
Operating supplies 186,876 193,583
----------- ----------
$ 467,127 $ 584,401
=========== ==========
</TABLE>
-7-
<PAGE> 8
SCOPE INDUSTRIES AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
MARCH 31, 1998
(CONTINUED)
6. Investments consisted of the following:
<TABLE>
<CAPTION>
Net Unrealized
Gains Before
Provision For
Cost Income Taxes Fair Value
---- ------------ ----------
<S> <C> <C> <C>
At March 31, 1998:
Investments available
for sale $5,316,459 $26,483,860 $31,800,319 (a)
Other equity
investments 1,006,000 1,006,000 (b)
At June 30, 1997:
Investments available
for sale $5,417,222 $10,122,484 $15,539,706
Other equity
investments 2,505,000 2,505,000(a)(b)
</TABLE>
(a) At June 30, 1997 the Registrant held 1,875,000 shares of OSI Systems,
Inc. (OSI) common stock. At June 30, 1997 the shares of OSI were not
publicly traded. The Registrant's June 30, 1997 holdings of OSI were
classified as "other equity investments" and valued at their cost of
$2,500,000.
In October 1997, an initial public offering of OSI common stock
occurred. Included in the public offering were 227,097 shares sold by
the Registrant. Proceeds of $2,821,173 were received from the sale of
those shares and a pre-tax gain of $2,518,378 resulted from the October
1997 transaction. The Registrant, as a condition of participating in the
initial public offering, has agreed to refrain from disposing of any of
its remaining 1,647,903 shares for a six month period following the
public offering.
In accordance with Financial Accounting Standards Board (FASB)
guidelines, the Registrant's March 31, 1998 financial statements
classify the OSI holdings as "available for sale" investments whose fair
value of $18,950,885 was determined by the March 31, 1998 closing bid
price for OSI as reported by NASDAQ.
(b) No quoted prices are available for these securities.
-8-
<PAGE> 9
SCOPE INDUSTRIES AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
MARCH 31, 1998
(CONTINUED)
7. During the nine month period ended March 31, 1998, investment gains of
$12,432,382 were recognized in the determination of income. Unrealized
investment holding gains (excluded from income but reported, net of
income taxes, as a separate component of shareowners' equity) increased
by $9,936,376 to $17,933,860 at March 31, 1998 from $7,997,484 at June
30, 1997.
During the nine months ended March 31, 1997, investment gains of
$17,309,726 were recognized and included as income. Unrealized
investment holding gains, (excluded from income but reported, net of
income taxes, as a separate component of shareowners' equity) decreased
by $9,326,194 to $5,041,813 at March 31, 1997 from $14,368,007 at June
30, 1996.
8. The provision for income taxes for the nine months ended March 31, 1998
represents an effective rate of 38.7% for federal and state income
taxes. For the nine month period ended March 31, 1997 the effective rate
for income taxes was 23.3%. In the 1997 period, deferred tax benefits
were recognized, which reduced the provision for income taxes to an
effective rate that was lower than statutory federal income tax rate.
-9-
<PAGE> 10
SCOPE INDUSTRIES AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
RESULTS OF OPERATIONS
Net income for the third quarter ended March 31, 1998 increased 42.0% from the
third quarter last year to $5,352,012 or $4.69 per share-diluted, compared to
$3,768,095 or $3.15 per share. Total operating revenues for this year's third
quarter were 11.5% less than the revenues for the same quarter last year. Waste
Material Recycling segment sales for the current quarter fell 12.2% from last
year's third quarter revenues. Tonnage volume in this year's third quarter was
6.5% less than tonnage for the same quarter last year. Unit selling prices were
6.3% below prices in last year's third quarter. Commodity prices for corn and
other grains in the quarter just ended were below the prices that prevailed last
year. Waste Material Recycling segment unit pricing closely follows these
commodity prices. Operating costs for the Waste Material Recycling segment
decreased 8.5% from the costs of the same quarter last year. The segment's sales
revenues decline being greater than the reduction of costs, caused lower current
quarter profit margins compared to the margins of the comparable quarter last
year. Vocational School Group revenues this quarter were 0.6% above the revenues
for the comparable quarter last year. The Group's operating costs for the
quarter were 1.6% lower in the current quarter than in the comparable quarter
last year.
Investment and other income for the quarter ended March 31, 1998 was $8,791,385
compared to $2,562,004 for the same three months last year. The investment
income included gains of $8,304,221 from sales of investments during the current
period and $1,891,071 in gains from investment sales in the prior year's third
quarter. The major source of the gains in the current quarter was from
dispositions of equity securities of Lone Star Industries, Inc.
that had been held for several years.
For the nine months ended March 31, 1998, net income was $8,968,647 or $7.78 per
share-diluted. Last year's comparable nine months' net income was $17,953,949 or
$15.00 per share. Revenues for the nine months ended March 31, 1998 were 18.0%
below the revenues for the comparable nine months last year. Lower corn prices
prevailing for the current year have caused unit selling prices of Dried Bakery
Product to be 21.6% below last year's average selling price for the comparable
nine months. Although volume of Dried Bakery Product has been comparable for the
nine month periods, the lower unit prices have caused revenues to decline. The
Waste Material Recycling segment continues to operate profitably but at lower
margins. The Vocational Schools Group segment operated with a small net loss for
the current nine month period compared to profitable operations for the
comparable nine month period last year.
Investment and other income for the nine months ended March 31, 1998 was
$13,805,497. This includes gains of $12,432,382 from sales of investments.
Investment and other income was $19,033,221 including $17,309,726 of investment
gains for the comparable nine months last year.
-10-
<PAGE> 11
SCOPE INDUSTRIES AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
(CONTINUED)
EARNINGS PER SHARE
The Financial Accounting Standards Board has issued Statement of Financial
Accounting Standards (SFAS) No. 128, "Earnings Per Share." SFAS 128 requires the
disclosure of basic earnings per share which replaces primary earnings per
share, and diluted earnings per share, which replaces fully diluted earnings per
share. Primary earnings per share is based on the weighted average number of
shares of common stock outstanding and the dilutive effect of options and other
common stock equivalents. Basic earnings per share does not consider any
dilution. Diluted earnings per share is similar to fully diluted earnings per
share, which considers all potentially dilutive securities.
SFAS 128 became effective for the Company with the December 31, 1997 financial
statements. All earnings per share data presented for prior periods has been
restated to conform to the new standard. Diluted earnings per share is less than
basic earnings per share because the assumed increase in the average number of
common shares outstanding resulting from the assumed exercise of outstanding
options in periods in which the average market price of the Company's common
shares exceeded the related option exercise prices.
FINANCIAL POSITION
Working Capital was $35,325,975 at March 31, 1998. It was $28,928,722 at June
30, 1997. The working capital ratio at March 31, 1998 was 6.7 and at June 30,
1997 was 8.5.
During the nine months ended March 31, 1998, the Company sold investment
securities whose aggregate proceeds totaled $15,367,847. A portion of the long
term investment position in Lone Star Industries, Inc. has been liquidated. At
March 31, 1998, investments held included $26,483,860 in unrealized gains based
on fair values that exceed adjusted costs for investment securities.
Shareowners' equity at March 31, 1998 reflects $17,933,860 for net unrealized
gains on investments after a provision for deferred taxes. The unrealized
holding gains are excluded from earnings.
The Company, as a result of its investment in OSI Systems, Inc. in 1990, was in
October 1997, OSI's largest single shareholder although not a controlling
shareholder. In October 1997, OSI Systems, Inc. completed an initial public
offering of its common stock. The Company sold 227,097 shares of OSI as a
participant in the public offering. A pre-tax gain of $2,518,378 was recognized
on the transaction. The Company still holds 1,647,903 OSI Shares. As a condition
of participating in the public offering, the Company agreed to refrain from
disposing of any of its remaining shares for a period that expired on April 1,
1998. Upon the establishment of public stock trading of OSI in October 1997, the
Company changed the classification of the investment holdings in OSI in
accordance with Financial Accounting Standards Board (FASB) guidelines. The
holding is now classified as an "available-for-sale" investment and is valued at
fair value. Fair value of the OSI holdings at March 31, 1998 was $18,950,885
which was determined by the March 31, 1998 closing bid price for OSI as reported
by NASDAQ.
-11-
<PAGE> 12
SCOPE INDUSTRIES AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
(CONTINUED)
TAXES
The provision for income taxes for the nine month period ended March 31, 1998 is
$5,665,000 and represents an effective rate of 38.7% for federal and state
income taxes. For the first nine months of the prior fiscal year, the income tax
provision was $5,450,000 and the effective tax rate was 23.3%. Deferred tax
benefits were recognized during the prior fiscal year, which reduced the
provision for income taxes to an effective rate that was lower than the statuary
federal income tax rate.
FORWARD LOOKING STATEMENTS
Forward looking statements included in the Management's Discussion and Analysis
of Results of Operations and Financial Condition and elsewhere in this quarterly
report are subject to risks and uncertainties that could affect actual future
results. Potential risks and uncertainties include, but are not limited to,
general business conditions, unusual volatility in equity and interest rate
markets, disruptions in the availability or pricing of raw materials,
transportation difficulties, changing government educational aid policies, or
disruption of operations from acts of God.
-12-
<PAGE> 13
SCOPE INDUSTRIES AND SUBSIDIARIES
PART II. OTHER INFORMATION
Item 2. Increases and Decreases in Outstanding Securities and
Indebtedness.
Increases and decreases in outstanding equity securities in the nine
months ending March 31, 1998 were as follows:
<TABLE>
<CAPTION>
Common Stock
No Par Value
---------
<S> <C>
Shares outstanding June 30, 1997 1,168,665
Shares purchased and retired
during the nine months (38,313)
---------
Shares outstanding March 31, 1998 1,130,352
=========
</TABLE>
A corporate resolution requires the retirement of all reacquisitions of
common stock. During the nine months ended March 31, 1998, the
Registrant purchased and retired 38,313 shares of common stock at a cost
of $2,042,335.
Item 6. Exhibits and Reports on Form 8-K.
(A) Exhibits - None
(B) No Form 8-K was filed for the quarter ended March 31,
1998.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized and accepting responsibility
as the signatory.
SCOPE INDUSTRIES
(Registrant)
DATE: May 6, 1998 /s/ John J. Crowley
--------------------- -------------------------------------
John J. Crowley, Vice President
and Chief Financial Officer
-13-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEET AT MARCH 31, 1998 AND THE CONSOLIDATED STATEMENT OF
INCOME FOR THE NINE MONTHS ENDED MARCH 31, 1998 AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-START> JUL-01-1997
<PERIOD-END> MAR-31-1998
<CASH> 4,484,798
<SECURITIES> 32,806,319
<RECEIVABLES> 3,034,605
<ALLOWANCES> 176,769
<INVENTORY> 467,127
<CURRENT-ASSETS> 41,503,498
<PP&E> 33,498,496
<DEPRECIATION> 23,065,230
<TOTAL-ASSETS> 85,806,504
<CURRENT-LIABILITIES> 6,177,523
<BONDS> 0
0
0
<COMMON> 4,138,462
<OTHER-SE> 69,240,519
<TOTAL-LIABILITY-AND-EQUITY> 85,806,504
<SALES> 15,775,574
<TOTAL-REVENUES> 19,205,177
<CGS> 11,098,539
<TOTAL-COSTS> 18,377,027
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 14,633,647
<INCOME-TAX> 5,665,000
<INCOME-CONTINUING> 8,968,647
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 8,968,647
<EPS-PRIMARY> 7.84<F1>
<EPS-DILUTED> 7.78
<FN>
<F1>The term "Primary" should read as "Basic".
</FN>
</TABLE>
