<PAGE> 1
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 QUARTERLY PERIOD ENDED AUGUST 3, 1996
COMMISSION FILE NUMBER 0-19714
PERFUMANIA, INC.
STATE OF FLORIDA I.R.S. NO. 65-0026340
11701 N.W. 101ST ROAD
MIAMI, FLORIDA 33178
TELEPHONE NUMBER: (305) 889-1600
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 TWELVE (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 NINETY (90) DAYS.
YES X NO
------- -------
COMMON STOCK $.01 PAR VALUE
OUTSTANDING SHARES AT AUGUST 3, 1996 - 7,807,791
<PAGE> 2
TABLE OF CONTENTS
PERFUMANIA, INC.
PART I
FINANCIAL INFORMATION
<TABLE>
<S> <C> <C>
ITEM 1 FINANCIAL STATEMENTS
Consolidated Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Consolidated Statements of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Consolidated Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Notes to Condensed Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . 6
ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF
CONSOLIDATED FINANCIAL CONDITION AND
RESULTS OF OPERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
PART II
OTHER INFORMATION
ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. . . . . . . . . . . . . . . . . . . . . 12
</TABLE>
2
<PAGE> 3
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
PERFUMANIA, INC.
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
August 3, 1996 February 3, 1996
-------------- ----------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 1,154,905 $ 331,028
Trade receivables, net 11,540,192 13,492,118
Advances to suppliers 8,078,867 4,311,660
Inventories, net of reserve of $750,000 64,873,255 56,014,501
Prepaid expenses 1,483,879 1,152,095
Net deferred tax asset 1,884,923 1,254,000
Due from related parties 122,538 122,538
------------ -----------
Total current assets 89,138,559 76,677,940
Property and equipment, net 14,090,921 13,453,780
Leased equipment under capital leases, net 1,433,220 1,606,497
Other assets 1,801,200 1,411,579
Due from related parties 417,763 415,527
------------ -----------
$106,881,663 $93,565,323
============ ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Bank line of credit and current portion of
notes payable $ 27,386,683 $23,553,897
Accounts payable 24,804,711 18,814,302
Accrued expenses and other liabilities 3,776,318 2,903,959
Current portion of obligations under capital leases 338,898 498,348
Due to related parties 740,000 680,000
------------ -----------
Total current liabilities 57,046,610 46,450,506
Other long-term liabilities 1,814,569 1,814,569
------------ -----------
Total liabilities 58,861,179 48,265,075
------------ -----------
Stockholders' equity:
Preferred stock, $.01 par value, 1,000,000 shares
authorized, none issued - -
Common stock, $.01 par value, 25,000,000 shares
authorized, 7,807,791 and 6,707,700 shares issued
and outstanding 78,078 67,077
Capital in excess of par 51,900,229 47,959,464
Treasury stock (365,198) (123,323)
Accumulated deficit (3,592,625) (2,602,970)
------------ -----------
Total stockholders' equity 48,020,484 45,300,248
------------ -----------
$106,881,663 $93,565,323
============ ===========
</TABLE>
See accompanying notes to consolidated financial statements.
3
<PAGE> 4
PERFUMANIA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Thirteen Thirteen Twenty-six Twenty-six
Weeks Ended Weeks Ended Weeks Ended Weeks Ended
August 3, 1996 July 29, 1995 August 3, 1996 July 29, 1995
-------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
Net sales $28,870,964 $27,381,538 $52,091,437 $50,917,580
Cost of goods sold 16,045,773 15,818,044 29,358,299 30,307,063
----------- ----------- ----------- -----------
Gross profit 12,825,191 11,563,494 22,733,138 20,610,517
----------- ----------- ----------- -----------
Operating Expenses:
Selling, general and administrative 10,919,296 10,036,184 21,189,279 20,043,174
Depreciation and amortization 856,237 793,743 1,710,427 1,586,799
----------- ----------- ----------- -----------
Total operating expenses 11,775,533 10,829,927 22,899,706 21,629,973
----------- ----------- ----------- -----------
Income (loss) from operations
before other expense 1,049,658 733,567 (166,568) (1,019,456)
Other expense (720,085) (723,488) (1,454,010) (1,309,715)
----------- ----------- ----------- -----------
Income (loss) before income taxes 329,573 10,079 (1,620,578) (2,329,171)
Provision (benefit) for income taxes 129,636 - (630,923) -
----------- ----------- ----------- -----------
Net income (loss) $ 199,937 $ 10,079 ($ 989,655) ($2,329,171)
=========== =========== =========== ===========
Earnings (loss) per common share $ 0.03 $ 0.00 ($ 0.13) ($ 0.34)
=========== =========== =========== ===========
</TABLE>
See accompanying notes to consolidated financial statements.
4
<PAGE> 5
PERFUMANIA, INC
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Twenty-six Twenty-six
Weeks Ended Weeks Ended
August 3, 1996 July 29, 1995
-------------- ---------------
<S> <C> <C>
Cash flows from operating activities:
Net loss ($989,655) ($2,329,171)
Adjustments to reconcile net loss to net cash
used in operating activities:
Benefit for deferred taxes (630,923)
-
Capitalized preopening costs (354,522) (140,985)
Provision for doubtful accounts 150,000 -
Depreciation and amortization 1,710,427 1,586,799
Loss on disposition 26,070 82,477
Change in assets and liabilities,
(Increase) decrease in:
Trade receivables 1,801,926 (795,829)
Advances to suppliers (3,767,207) (76,760)
Inventories (8,858,754) (3,375,478)
Other current assets (331,784) (280,633)
Tax refund receivable - 372,799
Other assets (189,924) (123,425)
Increase (decrease) in:
Accounts payable 5,990,409 3,346,887
Other current liabilities 912,935 122,048
---------- -----------
Total adjustments (3,541,347) 717,900
---------- -----------
Net cash used in operating activities (4,531,002) (1,611,271)
---------- ------------
Cash flows from investing activities:
Additions to property and equipment (2,040,882) (1,385,213)
Proceeds from sale of other property - 617,914
---------- -----------
Net cash used in investing activities (2,040,882) (767,299)
---------- -----------
Cash flows from financing activities:
Borrowings and repayments under loan payable 6,832,786 2,905,247
Borrowings and repayments from related parties 60,000 -
Repayments and loans to related parties (2,236) (29,468)
Principal payments under capital lease obligations (217,414) (171,030)
Purchases of treasury stock (241,875) -
Proceeds from issuance of common stock 964,500 6,250
---------- -----------
Net cash provided by financing activities 7,395,761 2,710,999
---------- -----------
Increase (decrease) in cash and cash equivalents 823,877 332,429
Cash and cash equivalents at beginning of period 331,028 505,872
---------- -----------
Cash and cash equivalents at end of period $1,154,905 $ 838,301
========== ===========
Supplemental disclosure of cash flow information:
Cash paid for:
Interest $1,770,109 $ 1,438,479
Income Taxes 25,000 35,000
</TABLE>
See accompanying notes to consolidated financial statements.
5
<PAGE> 6
PERFUMANIA, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(1). SIGNIFICANT ACCOUNTING POLICIES
The condensed consolidated financial statements include the accounts of
Perfumania and subsidiaries (the Company). All material intercompany balances
and transactions have been eliminated in consolidation.
The unaudited condensed consolidated financial statements have been prepared
pursuant to the rules and regulations of the Securities and Exchange
Commission. Certain information and note disclosures normally included in
annual financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to those rules
and regulations, although the Company believes that the disclosures made are
adequate to make the information presented not misleading. The financial
information presented herein, which is not necessarily indicative of results to
be expected for the current fiscal year, reflects all adjustments which, in the
opinion of the Company, are necessary for a fair statement of the results for
the periods indicated. It is suggested that these condensed consolidated
financial statements be read in conjunction with the financial statements and
the notes thereto included in the Company's Annual Report on Form 10-K for the
fiscal year ended February 3, 1996.
(2). STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
Common Stock Capital in Treasury Stock
------------ Excess -------------- Retained
Shares Amount of Par Shares Amount Earnings Total
----------- -------- ----------- -------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at
February 3, 1996 6,707,700 $67,077 $47,959,464 23,000 ($123,323) ($2,602,970) $45,300,248
Exercise of
stock options 2,000 20 8,230 - - - 8,250
Sale of
common stock 180,000 1,800 954,450 - - - 956,250
Conversion of
debentures 918,091 9,181 2,978,095 - - - 2,987,266
Purchase of
treasury stock - - - 45,000 (241,875) - (241,875)
Net loss for the
twenty-six weeks
ended August 3, 1996 - - - - - (989,655) (989,655)
--------- ------- ----------- ------ --------- ----------- -----------
Balance at
August 3, 1996 7,807,791 $78,078 $51,900,229 68,000 ($365,198) ($3,592,625) $48,020,484
--------- ------- ----------- ------ --------- ----------- -----------
</TABLE>
6
<PAGE> 7
(3). EARNINGS (LOSS) PER COMMON SHARE
Earnings (loss) per common share are computed by dividing net income (loss) by
the weighted average number of common shares outstanding.
The weighted average number of common shares for the thirteen and twenty-six
weeks ended August 3, 1996 were 7,800,589 and 7,567,541, respectively. The
weighted average number of common shares for the thirteen and twenty-six weeks
ended July 29, 1995 was 6,816,970.
(4). SEGMENT INFORMATION
The Company operates in two industry segments, specialty retail sale and
wholesale distribution of fragrances and related products. Financial
information for these segments is summarized in the following table.
<TABLE>
<CAPTION>
Thirteen Weeks Thirteen Weeks Twenty-six Twenty-six
Ended Ended Weeks Ended Weeks Ended
August 3, 1996 July 29, 1995 August 3, 1996 July 29, 1995
-------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
Sales
Wholesale $ 6,116,339 $ 6,685,715 $11,144,596 $14,600,915
Retail 22,754,625 20,695,823 40,946,841 36,316,665
----------- ----------- ----------- -----------
Total net sales $28,870,964 $27,381,538 $52,091,437 $50,917,580
----------- ----------- ----------- -----------
Cost of goods sold
Wholesale 4,399,570 $ 4,870,252 $ 8,238,967 $10,930,577
Retail 11,646,203 10,947,792 21,119,332 19,376,486
----------- ----------- ----------- -----------
Total cost of goods sold $16,045,773 $15,818,044 $29,358,299 $30,307,063
----------- ----------- ----------- -----------
Gross profit
Wholesale $ 1,716,769 $ 1,815,463 $ 2,905,629 $ 3,670,338
Retail 11,108,422 9,748,031 19,827,509 16,940,179
----------- ----------- ----------- -----------
Total gross profit $12,825,191 $11,563,494 $22,733,138 $20,610,517
----------- ----------- ----------- -----------
</TABLE>
<TABLE>
<CAPTION>
August 3, February 3,
1996 1996
----------- -----------
<S> <C> <C>
Inventory
Wholesale $20,818,840 $17,260,449
Retail 44,054,415 38,754,052
----------- -----------
$64,873,255 $56,014,501
----------- -----------
Number of stores 195 194
</TABLE>
An unaffiliated customer of the wholesale segment accounted for approximately
22% and 3% of the consolidated net sales for the twenty-six weeks ended August
3, 1996 and July 29, 1995, respectively, and 70% and 48% of the consolidated
net trade accounts receivable balance at August 3, 1996 and July 29, 1995,
respectively.
7
<PAGE> 8
(5). ISSUANCE OF STOCK SUBSCRIPTION AND CONVERTIBLE DEBENTURES
On March 21, 1996, the Company executed a Regulation S stock subscription
agreement to sell 180,000 shares of common stock to a non-U.S. person for
approximately $956,000. The proceeds were received in March 1996 and the
shares were subsequently issued in May 1996.
On March 25, 1996, the Company issued $3,000,000 of 5% Convertible Debentures
(the "Debentures") in a Regulation S offering to non-U.S. persons. The
debentures mature on April 1, 1997, and were convertible into shares of common
stock of the Company, at any time after May 21, 1996, at a conversion price for
each share of common stock equal to eighty-five percent of the market price of
common stock on the date of conversion, not to exceed $8.50 per share of common
stock. As of July 19, 1996, all of the debentures had been converted by the
registered holders into an aggregate of approximately 918,000 shares of the
Company's common stock.
(6) SUBSEQUENT EVENT
Through August 13, 1996, the Company has repurchased an additional 20,000
shares of its common stock for approximately $83,000. This repurchase was
previously authorized by the Company's Board of Directors.
8
<PAGE> 9
PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
CONSOLIDATED FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
SEASONALITY
The Company's operations have historically been seasonal, with generally higher
retail sales in the third and fourth fiscal quarters than in the first and
second fiscal quarters. Significantly higher fourth fiscal quarter retail sales
result from increased purchases of fragrances as gift items during the
Christmas holiday season. Wholesale sales also vary by fiscal quarter as a
result of the selection of merchandise available for sale as well as the need
for the Company to stock its retail stores for the Christmas holiday season.
Therefore, the results of any interim period are not necessarily indicative of
the results that might be expected during a full fiscal year.
LIQUIDITY AND CAPITAL RESOURCES
At August 3, 1996 working capital was $32.1 million compared to $30.2 million
at February 3, 1996. The increase was primarily due to the issuance of common
stock for cash and upon conversion of debentures (see Note 5), offset by the
loss for the twenty-six weeks ended August 3, 1996.
Net cash used in operating activities during the twenty-six weeks ended August
3, 1996 was approximately $4.5 million, principally as a result of the net
change in the Company's inventory, trade receivables, and accounts payable, as
well as the net loss for the twenty-six week period. At August 3, 1996,
approximately $1.7 million of the Company's trade receivables were considered
past due compared to $0.7 million at February 3, 1996. Of the $11.5 million in
trade receivables due from unaffiliated customers, $8.1 million was due from
one customer which also accounted for 47.2% of the Company's wholesale sales
during the thirteen weeks ended August 3, 1996. The Company's sales to this
customer are made on an open account terms and since late 1991 the Company has
extended credit terms to this customer of up to one year. The Company has not
experienced any write-offs of accounts receivable from this customer due to
collectibility.
Net cash used in investing activities during the current period was $2.1
million. This represents purchases of furniture, fixtures and equipment for
store openings during the first three quarters.
Net cash provided by financing activities during the current period was
approximately $7.4 million, which was the result of an increase in the
Company's use of its line of credit, along with the issuance of $3 million of
5% convertible debentures, and issuance of 180,000 shares of common stock for
approximately $1.0 million (see Note 5). On March 29, 1996, the Company's $25
million line of credit, which expires on April 30, 1999, was increased to $30
million.
During the thirteen weeks ended August 3, 1996, the Company opened 2 stores and
closed 2 stores. At August 3, 1996, the Company operated 195 stores. The
Company plans to open approximately 30 stores during the remainder of fiscal
1996.
9
<PAGE> 10
RESULTS OF OPERATIONS
COMPARISON OF THE THIRTEEN WEEKS ENDED AUGUST 3, 1996 WITH THE THIRTEEN WEEKS
ENDED JULY 29, 1995.
Net sales increased from $27.4 million in the thirteen weeks ended July 29,
1995 to $28.9 million in the thirteen weeks ended August 3, 1996. Wholesale
sales decreased by 8.5% (from $6.7 million to $6.2 million) and retail sales
increased by 10.0% (from $20.7 million to $22.8 million). The increase in
retail sales was principally due to the increase in the number of stores
operated during the thirteen weeks ended August 3, 1996 compared to the
thirteen weeks ended July 29, 1995. Comparable store sales during the current
period increased 0.3% when compared to last year.
Gross profit increased 10.9% from $11.6 million in the thirteen weeks ended
July 29, 1995 (42.2% of net sales) to $12.8 million in the thirteen weeks
ended August 3, 1996 (44.4% of net sales) primarily due to an increase in gross
profit for the retail division.
Gross profit for the wholesale division decreased from $1.8 million in the
thirteen weeks ended July 29, 1995 to $1.7 million in the thirteen weeks ended
August 3, 1996. As a percentage of net sales, gross profit for the wholesale
division increased from 27.2% in the thirteen weeks ended July 29, 1995 to
28.1% in the thirteen weeks ended August 3, 1996, primarily as a result of
higher margin sales.
Gross profit for the retail division increased to $11.1 million in the thirteen
weeks ended August 3, 1996 from $9.7 million in the thirteen weeks ended July
29, 1995 as a result of higher retail sales. As a percentage of net sales,
gross profit for the retail division increased from 47.1% in the thirteen weeks
ended July 29, 1995 to 48.8% in the thirteen weeks ended August 3, 1996
primarily as a result of less promotional sales of merchandise at lower
margins.
Operating expenses, which include selling, general and administrative expenses
as well as depreciation, increased 8.7% from $10.8 million in the thirteen
weeks ended July 29, 1995 to $11.8 million in the thirteen weeks ended August
3, 1996. The increase was primarily due to costs associated with the operation
of 17 additional stores during the current period.
The Company had a net income of $199,937, or $0.03 per share, in the thirteen
weeks ended August 3, 1996 compared to a net income of $10,079, or $0.00 per
share, in the thirteen weeks ended July 29, 1995. The weighted average number
of common shares outstanding were 7,800,589 for the thirteen weeks ended August
3, 1996 and 6,816,970 for the thirteen weeks ended July 29, 1995.
COMPARISON OF THE TWENTY-SIX WEEKS ENDED AUGUST 3, 1996 WITH THE TWENTY-SIX
WEEKS ENDED JULY 29, 1995.
Net sales increased 2.3% from $50.9 million in the twenty-six weeks ended July
29, 1995 to $52.1 million in the twenty-six weeks ended August 3, 1996. The
increase in net sales was due to a 12.7% increase in retail sales (from $36.3
million to $40.9 million), which was offset by a 23.7% decrease in wholesale
sales (from $14.6 million to $11.1 million).
The decrease in wholesale sales was primarily attributable to a slowdown in
wholesale orders during the thirteen weeks ended May 4, 1996.
The increase in retail sales was principally due to the increase in the number
of stores operated during the twenty-six weeks ended August 3, 1996 compared to
the twenty-six weeks ended July 29, 1995. Comparable store sales during the
twenty-six weeks ended August 3, 1996 increased 2.7% when compared to last
year.
10
<PAGE> 11
Gross profit increased 10.3% from $20.6 million in the twenty-six weeks ended
July 29, 1995 (40.5% of net sales) to $22.7 million in the twenty-six weeks
ended August 3, 1996 (43.6% of net sales) primarily as a result of the increase
in retail sales.
Gross profit for the wholesale division decreased 20.8% from $3.7 million in
the twenty-six weeks ended July 29, 1995 to $2.9 million in the twenty-six
weeks ended August 3, 1996, primarily as a result of lower wholesale sales. As
a percentage of net sales, gross profit for the wholesale division increased
from 25.1% in the twenty-six weeks ended July 29, 1995 to 26.1% in the
twenty-six weeks ended August 3, 1996.
Gross profit for the retail division increased 17.0% from $16.9 million in the
twenty-six weeks ended July 29, 1995 to $19.8 million in the twenty-six weeks
ended August 3, 1996. The retail division's gross margin increased from 46.6%
in the twenty-six weeks ended July 29, 1995 to 48.4% in the twenty-six weeks
ended August 3, 1996.
Operating expenses increased $1.3 million in the twenty-six weeks ended August
3, 1996 compared to the twenty-six weeks ended July 29, 1995. The increase was
primarily due to costs associated with the operation of 15 additional stores.
During the twenty-six weeks ended August 3, 1996 the Company had a net loss of
$989,655 or ($0.13) per share (based on 7,567,541 average common shares
outstanding), compared to a net loss of $2,329,171 or ($0.34) per share (based
on 6,816,970 average common shares outstanding) during the twenty-six weeks
ended July 29, 1995.
11
<PAGE> 12
PART II. OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
On August 21, 1996, the Company held its annual meeting of shareholders. At
the annual meeting, the shareholders elected Simon Falic, Jerome Falic, Ron A.
Friedman, Marc Finer, Robert Pliskin, Daniel J. Manella and Carole Ann Taylor
to the Board of Directors.
The number of votes for and against, abstentions and brokers non-votes with
respect to each director's election was as follows:
<TABLE>
<CAPTION>
TOTAL SHARES SHARES
SHARES VOTED VOTED ABSTAIN/ NON-
VOTED FOR AGAINST WITHHELD VOTES
-------- ----------- -------- -------- -----
<S> <C> <C> <C> <C> <C>
Simon Falic 6,210,903 6,204,353 - 6,550 -
Jerome Falic 6,210,903 6,204,353 - 6,550 -
Marc Finer 6,210,903 6,204,353 - 6,550 -
Ron A. Friedman 6,210,903 6,204,353 - 6,550 -
Robert Pliskin 6,210,903 6,204,353 - 6,550 -
Daniel J. Manella 6,210,903 6,204,353 - 6,550 -
Carole Ann Taylor 6,210,903 6,204,353 - 6,550 -
</TABLE>
12
<PAGE> 13
PERFUMANIA, INC.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused the report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Perfumania, Inc.
------------------------------------
(Registrant)
Date: September 9, 1996 By: /S/ SIMON FALIC
------------------------------------
Simon Falic
Chairman of the Board, President and
Chief Executive Officer
(Principal Executive Officer)
By: /S/ RON A. FRIEDMAN
------------------------------------
Ron A. Friedman
Chief Financial Officer
Treasurer, and Secretary
(Principal Financial and
Accounting Officer)
13
<PAGE> 14
Exhibit Index
27 -- Financial Data Schedule (for SEC use only)
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> FEB-05-1997
<PERIOD-START> FEB-04-1996
<PERIOD-END> AUG-03-1996
<CASH> 1,154,905
<SECURITIES> 0
<RECEIVABLES> 11,540,192
<ALLOWANCES> 0
<INVENTORY> 64,873,255
<CURRENT-ASSETS> 89,138,559
<PP&E> 14,090,921
<DEPRECIATION> 0
<TOTAL-ASSETS> 106,881,663
<CURRENT-LIABILITIES> 57,046,610
<BONDS> 2,153,467
0
0
<COMMON> 78,078
<OTHER-SE> 47,942,406
<TOTAL-LIABILITY-AND-EQUITY> 106,881,663
<SALES> 52,091,437
<TOTAL-REVENUES> 52,091,437
<CGS> 29,358,299
<TOTAL-COSTS> 29,358,299
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (1,620,578)
<INCOME-TAX> (630,923)
<INCOME-CONTINUING> (989,655)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (989,655)
<EPS-PRIMARY> (0.13)
<EPS-DILUTED> (0.13)
</TABLE>
