<PAGE> 1
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d) of the
Securities Exchange Act of 1934
For The Quarter Ended September 30, 1997
Commission File Number 0-19544
AUTOCAM CORPORATION
A Michigan Corporation
I.R.S. Employer Identification No. 38-2790152
4070 East Paris Avenue, Kentwood, Michigan 49512
Telephone: (616) 698-0707
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, and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
------ ------
The number of Common Shares outstanding at November 3, 1997 was 5,732,997.
1 of 15
<PAGE> 2
INDEX
PART I - FINANCIAL INFORMATION PAGE NO.
--------------------- --------
Item 1. Financial Statements
Consolidated Balance Sheets as of September 30 and
June 30, 1997 5
Consolidated Statements of Operations for the Three Months
Ended September 30, 1997 and 1996 6
Consolidated Statements of Cash Flows for the Three Months
Ended September 30, 1997 and 1996 7
Notes to Consolidated Financial Statements 8 - 9
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 10 - 14
PART II - OTHER INFORMATION
-----------------
Item 1. Legal Proceedings - None.
Item 2. Changes in Securities - None.
Item 3. Default Upon Senior Securities - None.
Item 4. Submission of Matters to a Vote of Security Holders - The following
matters were submitted to a vote of the Company's common
shareholders at its annual shareholders meeting on October 21, 1997:
a. The following directors of the Company were
elected to serve until the meeting of shareholders in 2000
and until their successors are elected (amounts shown in
parentheses represent the number of votes cast for,
against or withheld, and abstentions, respectively):
(i) John C. Kennedy (5,231,797, 0, 178,419)
(ii) Kenneth K. Rieth (5,231,397, 0, 178,819)
(iii) Mark J. Bissell (5,230,079, 0, 180,137)
2
<PAGE> 3
INDEX - CONTINUED
Item 4. Submission of Matters to a Vote of Security Holders - Concluded
The following directors of the Company continued as
directors until the annual meeting of shareholders in the
year indicated parenthetically and until their successors
are elected:
Warren A. Veltman (1998)
Robert L. Hooker (1998)
David J. Wagner (1999)
Kim Korth (1999)
b. A proposal to ratify the selection of Deloitte &
Touche LLP as independent auditors for the Company for the
fiscal year ending June 30, 1998. Shareholder votes were
cast as follows: 5,394,254 for; 11,952 against or
withheld; and, 4,010 abstentions. Based on this
tabulation of votes, the proposal was approved.
c. A proposal to amend Sections 5 and 6 of the
Autocam Corporation 1991 Incentive Stock Option Plan (the
"Plan") to increase the number of shares of the Company's
Common Stock available for issuance upon the exercise of
options granted thereunder to 750,000 shares and to make
all employees of the Company eligible for awards pursuant
to the Plan. Shareholder votes were cast as follows:
5,181,176 for; 201,111 against or withheld; and, 27,929
abstentions. Based on this tabulation of votes, the
proposal was approved.
Item 5. Other Information - None.
Item 6. Exhibits and Reports on Form 8-K - The Company filed a Form 8-K
Report, dated June 30, 1997, as amended by Form 8-K/A, filed
September 9, 1997, to report under Item 2 of the Form 8-K the
acquisitions of certain assets and the assumption of certain
liabilities of Dowagiac Manufacturing Company, Inc., and
Hamilton-Pax, Inc. (together, "The Hamilton Group"). In the
Form 8-K Report, as amended, the Company filed the combined
financial statements of the businesses acquired which included:
- Report of Independent Auditors
- Combined Balance Sheets as of March 31, 1997 (unaudited) and
December 31, 1996
- Combined Statements of Operations for the Three Months
Ended March 31, 1997 (unaudited) and for the Year Ended December
31, 1996
- Combined Statements of Shareholders' Equity for the
Three Months Ended March 31, 1997 (unaudited) and for the Year
Ended December 31, 1996
- Combined Statements of Cash Flows for the Three Months
Ended March 31, 1997 (unaudited) and for the Year Ended December
31, 1996
- Notes to Combined Financial Statements
3
<PAGE> 4
INDEX - CONCLUDED
Item 6. Exhibits and Reports on Form 8-K - Concluded
The Company also filed pro forma consolidating financial
information which included:
- Description of Consolidating Pro Forma Financial Information
- Consolidating Pro Forma Balance Sheet as of March 31, 1997
- Consolidating Pro Forma Statements of Operations for
the Nine Months Ended March 31, 1997 and for the Year Ended June
30, 1996.
- Notes to Consolidating Pro Forma Financial Information
4
<PAGE> 5
AUTOCAM CORPORATION & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
SEPTEMBER 30, 1997 JUNE 30, 1997
------------------ -------------
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash $ 486,897 $ 2,510,500
Accounts receivable 8,080,850 8,841,516
Inventories 5,396,663 5,444,420
Prepaid expenses and other 945,750 722,020
----------- -----------
TOTAL CURRENT ASSETS 14,910,160 17,518,456
PROPERTY, PLANT AND EQUIPMENT, NET 55,062,931 53,291,418
OTHER LONG-TERM ASSETS 13,030,173 12,827,954
----------- -----------
TOTAL ASSETS $83,003,264 $83,637,828
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term obligations $ 6,170,424 $ 5,905,541
Accounts payable 4,852,802 4,398,050
Accrued liabilities 3,023,817 2,911,939
----------- -----------
TOTAL CURRENT LIABILITIES 14,047,043 13,215,530
LONG-TERM OBLIGATIONS, NET OF CURRENT MATURITIES 22,356,824 25,191,778
DEFERRED TAXES 8,102,000 7,802,000
DEFERRED CREDITS AND OTHER 696,040 813,550
SHAREHOLDERS' EQUITY:
Preferred stock - 200,000 shares authorized; no
shares issued or outstanding
Common stock - 10,000,000 shares authorized;
5,730,521 and 5,711,587 shares issued and
outstanding as of September 30 and June 30,
1997, respectively 26,397,344 26,270,940
Deferred compensation (607,083) (645,833)
Retained earnings 12,011,096 10,989,863
----------- -----------
TOTAL SHAREHOLDERS' EQUITY 37,801,357 36,614,970
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $83,003,264 $83,637,828
=========== ===========
</TABLE>
See notes to consolidated financial statements.
5
<PAGE> 6
AUTOCAM CORPORATION & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED
SEPTEMBER 30,
----------------------------
1997 1996
------------- -------------
<S> <C> <C>
Sales $17,429,456 $14,647,819
Cost of sales 14,015,745 11,317,214
----------- -----------
Gross profit 3,413,711 3,330,605
Selling, general and administrative 1,000,698 796,035
Other operating expenses 51,875 51,875
----------- -----------
Income from operations 2,361,138 2,482,695
Interest and other expense, net 607,815 326,761
----------- -----------
Income before tax provision 1,753,323 2,155,934
Tax provision 617,800 752,139
----------- -----------
NET INCOME $ 1,135,523 $ 1,403,795
=========== ===========
NET INCOME PER SHARE $ .20 $ .24
=========== ===========
Weighted average shares outstanding 5,818,679 5,755,394
Dividends declared per share $ .02
</TABLE>
See notes to consolidated financial statements.
6
<PAGE> 7
AUTOCAM CORPORATION & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED
SEPTEMBER 30,
----------------------------
1997 1996
------------- -------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 1,135,523 $ 1,403,795
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 1,752,058 1,302,470
Deferred taxes 300,000 250,000
Changes in assets and liabilities that provided
(used) cash:
Accounts receivable 715,188 1,084,646
Inventories 47,757 (91,142)
Prepaid expenses and other (235,553) (193,787)
Other long-term assets 141,697 53,446
Accounts payable 454,752 70,672
Accrued liabilities 111,878 711,555
Deferred credits and other (117,510) (26,777)
----------- -----------
NET CASH PROVIDED BY OPERATING ACTIVITIES 4,305,790 4,564,878
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures and deposits on equipment (3,668,825) (2,791,196)
Proceeds from sale of equipment 45,000
Payment of life insurance premiums and other (147,613) (122,775)
----------- -----------
NET CASH USED IN INVESTING ACTIVITIES (3,771,438) (2,913,971)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments on line of credit, net (1,525,000)
Proceeds from issuance of long-term obligations 625,000 800,000
Principal payments of long-term obligations (1,670,071) (963,724)
Cash dividends paid (114,289)
Proceeds from exercise of employee stock options 126,405
-----------
NET CASH USED IN FINANCING ACTIVITIES (2,557,955) (163,724)
----------- -----------
Net increase (decrease) in cash (2,023,603) 1,487,183
Cash at beginning of period 2,510,500 1,466,751
----------- -----------
Cash at end of period $ 486,897 $ 2,953,934
=========== ===========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest $ 552,326 $ 376,650
Income taxes 18,750
</TABLE>
See notes to consolidated financial statements.
7
<PAGE> 8
AUTOCAM CORPORATION & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
1. BASIS OF PRESENTATION
The accompanying unaudited interim consolidated financial statements
(the "Financial Statements") of Autocam Corporation and its wholly-owned
subsidiaries (together, the "Company") have been prepared pursuant to
the rules and regulations of the Securities and Exchange Commission.
Accordingly, the Financial Statements do not include all the information
and footnotes normally included in the annual consolidated financial
statements prepared in accordance with generally accepted accounting
principles. All significant intercompany accounts and transactions have
been eliminated in consolidation.
In the opinion of management, the Financial Statements reflect all
adjustments (consisting only of normal recurring adjustments) necessary
to present fairly such information in accordance with generally accepted
accounting principles. These Financial Statements should be read in
conjunction with the financial statements and footnotes thereto included
in the Company's Annual Report on Form 10-K for the fiscal year ended
June 30, 1997.
Weighted average shares outstanding and earnings per share for the three
months ended September 30, 1996 have been restated to give effect to a
5% share dividend declared on October 24, 1996 and paid on November 28,
1996 to shareholders of record on November 12, 1996.
RECLASSIFICATIONS - Certain reclassifications have been made to the
Balance Sheet as of June 30, 1997 in order to conform with the September
30, 1997 presentation.
2. INVENTORIES
Inventories are summarized as follows:
<TABLE>
<CAPTION>
SEPTEMBER 30, 1997 JUNE 30, 1997
------------------ -------------
<S> <C> <C>
Raw materials $1,324,290 $1,389,735
Production supplies 1,034,012 1,163,588
Work in-process 2,076,842 2,073,987
Finished goods 961,519 817,110
---------- ----------
TOTAL INVENTORIES $5,396,663 $5,444,420
========== ==========
</TABLE>
8
<PAGE> 9
AUTOCAM CORPORATION & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONCLUDED
SEPTEMBER 30, 1997
3. PROPERTY, PLANT AND EQUIPMENT, NET
Property, plant and equipment is summarized by major classification as
follows:
<TABLE>
<CAPTION>
SEPTEMBER 30, 1997 JUNE 30, 1997
------------------ -------------
<S> <C> <C>
Land $ 1,843,725 $ 1,842,781
Buildings 6,940,441 6,869,861
Leasehold improvements 400,697 340,014
Machinery and equipment 62,269,639 59,268,918
Furniture and fixtures 2,755,281 2,543,855
Construction in progress 50,260 57,546
------------ ------------
TOTAL 74,260,043 70,922,975
Accumulated depreciation and amortization (19,197,112) (17,631,557)
------------ ------------
PROPERTY, PLANT AND EQUIPMENT, NET $ 55,062,931 $ 53,291,418
============ ============
</TABLE>
4. LONG-TERM OBLIGATIONS
Long-term obligations consist of the following (interest rates are as of
September 30, 1997):
<TABLE>
<CAPTION>
SEPTEMBER 30, 1997 JUNE 30, 1997
------------------ -------------
<S> <C> <C>
Term notes with banks, 6.4% to 9.25% $21,258,828 $21,599,739
Mortgage payable to bank, 9.35% 1,017,135 1,039,234
Second mortgage payable to bank, 7% 993,432 1,007,829
Revolving credit note with bank, 8% 5,257,853 6,782,853
Capital lease obligation, 7.8% 667,664
-------------
TOTAL 28,527,248 31,097,319
Less current maturities 6,170,424 5,905,541
------------------ -------------
LONG-TERM $22,356,824 $25,191,778
================== =============
</TABLE>
5. INCOME TAXES
Income taxes were provided at effective rates of 35.2% and 34.9% for the
quarters ended September 30, 1997 and 1996, respectively. These amounts
include provision for California Unitary tax which is levied on an
allocated portion of the Company's net income at a rate of 9.3%, and
South Carolina income tax which is levied on net income generated by the
South Carolina operations at a rate of 5%.
9
<PAGE> 10
AUTOCAM CORPORATION AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
SEPTEMBER 30, 1997
Certain matters discussed in the following pages include forward looking
statements which include risks and uncertainties including but not
limited to economic, competitive, governmental and technological factors
affecting Autocam Corporation and its wholly-owned subsidiaries'
(together, the "Company") operations, markets, products, services and
prices.
RESULTS OF OPERATIONS
The following table presents, for the periods indicated, the components
of the Company's Consolidated Statements of Operations as a percentage
of sales:
<TABLE>
<CAPTION>
THREE MONTHS ENDED
SEPTEMBER 30,
--------------------
1997 1996
--------- ---------
<S> <C> <C>
Sales 100.0% 100.0%
Cost of sales 80.5% 77.3%
-------- --------
Gross profit 19.5% 22.7%
Selling, general and administrative 5.7% 5.4%
Other operating expenses .3% .4%
-------- --------
Income from operations 13.5% 16.9%
Interest and other expense, net 3.5% 2.2%
-------- --------
Income before tax provision 10.0% 14.7%
Tax provision 3.5% 5.1%
-------- --------
NET INCOME 6.5% 9.6%
======== ========
</TABLE>
10
<PAGE> 11
AUTOCAM CORPORATION AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - CONTINUED
SEPTEMBER 30, 1997
SALES - CONTINUED
The following table indicates the Company's sales (in thousands) and
percentage of total sales by product application for the three month
periods ended September 30, 1997 and 1996:
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
----------------------------------------------
1997 1996
---------------------- ----------------------
<S> <C> <C> <C> <C>
Automotive:
Fuel systems $10,172 58.4% $10,701 73.1%
Braking systems 4,043 23.2 1,715 11.7
Other 427 2.4 220 1.5
---------- --------- ---------- ---------
Total automotive 14,642 84.0 12,636 86.3
Medical devices 1,870 10.7 1,628 11.1
Computer electronics 670 3.9 378 2.6
Other 247 1.4 6
</TABLE>
Sales of components for fuel system applications were $10,172,000 for
the three months ended September 30, 1997, a decrease of 5% from sales
of the same period in the prior year. Longer than expected model
changeover shutdowns and labor work stoppages at certain of the
Company's largest customer's facilities negatively impacted sales to
this market. These declines were partially offset by $874,000 in
incremental sales of gasoline and diesel fuel injection components to
other customers. Sales of fuel system components to the Company's
largest customer in this market represented 32% and 48% of total Company
sales during the three months ended September 30, 1997 and 1996,
respectively.
Sales of braking system components for the three months ended September
30, 1997 were $4,043,000, an increase of $2,328,000 over the first
quarter of fiscal 1997. This increase can be attributed almost entirely
to the acquisition of certain assets and assumption of certain
liabilities of Dowagiac Manufacturing Company, Inc. and Hamilton-Pax,
Inc. (together, "The Hamilton Group"), a manufacturer of precision
automotive braking system components (the "Acquisition"), on June 30,
1997. Exclusive of the effects of the Acquisition, sales to this market
declined $585,000 when comparing the two periods presented. During
fiscal 1997, a customer eliminated certain components manufactured by
the Company which were no longer utilized on its new generation system.
Sales of medical device components were $1,870,000 for the three months
ended September 30, 1997, an increase of 15% as compared to the same
period in the prior year. During the second half of fiscal 1997, the
Company began manufacturing precision-machined metal components for
innovative cardiovascular surgical device manufacturers, commonly known
as coronary stents. The sale of these components is the primary reason
for the sales increase between the periods presented.
11
<PAGE> 12
AUTOCAM CORPORATION AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - CONTINUED
SEPTEMBER 30, 1997
SALES - CONCLUDED
Sales of components for computer electronic applications were $670,000
during the three months ended September 30, 1997, a 77% increase from
the same period in fiscal 1997. This increase is attributable to the
production and sale of key components used in computer microprocessor
subassemblies during the first quarter of fiscal 1998.
Management believes that year-over-year sales growth in fiscal 1998 will
approximate 30%. Growth is expected to be generated primarily from
increasing sales of automotive braking system and computer electronics
components. Braking system component sales increases are expected to be
driven by shipments of The Hamilton Group components which should
approximate $13,000,000 in fiscal 1998. Increasing sales to the
computer electronics industry are expected to be generated by shipments
of computer microprocessor subassembly components. The Company expects
sales of these components to grow significantly over the next nine
months.
GROSS PROFIT
Gross profit for the three months ended September 30, 1997 represented
19.5% of sales verses 22.7% of sales in the first quarter of fiscal
1997. The Company suffered larger than previously experienced declines
in orders from its largest automotive customer due to seasonal model
changeover shutdowns and labor work stoppages at customer facilities.
Also, the Company is in the midst of several new program start-ups for
fuel systems customers. Typically, margins are lower in the early
stages of a new program and improve as the Company's continuous
improvement methodology streamlines manufacturing processes.
Management expects that fiscal 1998 gross profit, as a percentage of
sales, will improve significantly over the next nine months, as compared
to the first quarter. The following factors are expected to contribute
to this improvement:
- - Growth in demand for new fuel systems program components should allow for
improved labor and equipment utilization typically gained through
continuous improvement activities.
- - The expected addition of new computer electronics business will allow for
the full utilization of equipment and labor which had been underutilized
as a result of the reduction in other computer electronics and anti-lock
braking system business.
- - The integration of The Hamilton Group's operations and the implementation
of continuous improvement concepts employed by Autocam are expected to
result in improved margins on products manufactured in the Dowagiac,
Michigan and Gaffney, South Carolina facilities.
12
<PAGE> 13
AUTOCAM CORPORATION AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - CONTINUED
SEPTEMBER 30, 1997
SELLING, GENERAL AND ADMINISTRATIVE
Selling, general and administrative expenses, as a percentage of sales,
were 5.7% and 5.4% during the three months ended September 30, 1997 and
1996, respectively. These expenses increased monetarily and as a
percentage of sales due to the Acquisition. Management expects that
selling, general and administrative expenses, as a percentage of sales,
will decline slightly from current levels over the remainder of fiscal
1998 as the integration of The Hamilton Group is expected to eliminate
certain redundant costs.
OTHER OPERATING EXPENSES
Other operating expenses represent the straight-line amortization of
employment and deferred compensation agreements between the Company and
a key employee.
INTEREST AND OTHER EXPENSE, NET
Net interest and other expense for the three months ended September 30,
1997 increased $281,000 from the same period in the previous year. This
increase is due primarily to an 89% increase in average borrowings
outstanding during the quarter ended September 30, 1997 in order to
finance the Acquisition.
Management anticipates that interest expense, as a percentage of sales,
over the next nine months will remain consistent with, or slightly
below, first quarter levels, as the Company begins retiring the
Acquisition debt.
TAX PROVISION
Income tax has been provided at rates of 35.2% and 34.9% for the three
months ended September 30, 1997 and 1996, respectively. Tax provisions
for both periods include provisions for California Unitary and South
Carolina corporate income taxes.
Management expects the Company's effective tax rate to approximate 35%
for the remainder of fiscal 1998.
LIQUIDITY AND CAPITAL RESOURCES
New equipment placed into service and deposits paid on future equipment
purchases during the quarter ended September 30, 1997 totaling $4.2
million were financed through operating cash flows and bank borrowings
($3.6 million) and operating lease agreements ($554,000).
13
<PAGE> 14
AUTOCAM CORPORATION AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - CONCLUDED
SEPTEMBER 30, 1997
LIQUIDITY AND CAPITAL RESOURCES - CONCLUDED
In order to meet demand primarily from automotive and computer
electronics customers, management will purchase $13.1 million of
equipment and invest $2.1 million in facilities over the next nine
months (on which deposits of $2.4 million had been placed as of
September 30, 1997). Management expects to finance these purchases with
cash on hand, operating cash flows, operating leases, and bank
borrowings, including its equipment line of credit ($5,375,000 in
availability as of September 30, 1997) which allows the Company to
retire borrowings over a period not to exceed six years with either
variable or fixed interest rates.
Management believes that the Company has adequate credit facilities and
cash available to meet its working capital needs through fiscal 1998.
The Company has a $13,500,000 revolving line of credit, $1,500,000 of
which was reserved for foreign currency futures contracts as of
September 30, 1997, and $1,000,000 of which was reserved for a letter of
credit associated with the Acquisition. As of September 30, 1997, the
remaining availability under the revolving line of credit was
$5,742,000. Management anticipates retiring current maturities of
long-term obligations with cash on hand ($487,000 as of September 30,
1997) and future operating cash flows. As of September 30, 1997, $5.3
million of the Company's long-term debt was subject to variable interest
rates.
14
<PAGE> 15
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.
Date: November 12, 1997
Autocam Corporation
/s/ John C. Kennedy
-------------------
John C. Kennedy
Principal Executive Officer
/s/ Warren A. Veltman
-------------------
Warren A. Veltman
Principal Financial and
Accounting Officer
15
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-START> JUL-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 486,897
<SECURITIES> 0
<RECEIVABLES> 8,080,050
<ALLOWANCES> 0
<INVENTORY> 5,396,663
<CURRENT-ASSETS> 14,910,160
<PP&E> 74,260,043
<DEPRECIATION> 19,197,112
<TOTAL-ASSETS> 83,003,264
<CURRENT-LIABILITIES> 14,047,043
<BONDS> 22,356,824
0
0
<COMMON> 26,397,344
<OTHER-SE> 11,404,013
<TOTAL-LIABILITY-AND-EQUITY> 83,003,264
<SALES> 17,429,456
<TOTAL-REVENUES> 17,429,456
<CGS> 14,015,745
<TOTAL-COSTS> 14,015,745
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 607,815
<INCOME-PRETAX> 1,753,323
<INCOME-TAX> 617,800
<INCOME-CONTINUING> 1,135,523
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,135,523
<EPS-PRIMARY> .20
<EPS-DILUTED> .20
</TABLE>
