UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(MARK ONE)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER 333-64373
COMPUTER TECHNOLOGY ASSOCIATES, INC.
(Exact name of registrant as specified in its charter)
COLORADO 84-0797618
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
6903 ROCKLEDGE DRIVE, BETHESDA, MARYLAND 20817
(Address of principal executive offices) (Zip Code)
(301) 581-3200
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. YES[X] No [ ]
Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of SEPTEMBER 30, 1999.
COMMON STOCK, $.01 PAR VALUE 8,977,120
(Class) (Number of Shares)
<PAGE>
COMPUTER TECHNOLOGY ASSOCIATES, INC.
FORM 10-Q
FOR THE QUARTER ENDED SEPTEMBER 30, 1999
INDEX
PART I. -- FINANCIAL INFORMATION
Item 1. Financial Statements:
Condensed Consolidated Balance Sheets
September 30, 1999 and December 31, 1998
Consolidated Statements of Operations
Three months and six months ended September 30, 1999 and 1998
Condensed Consolidated Statements of Cash Flows
Six months ended September 30, 1999 and 1998
Notes to Condensed Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
PART II. -- OTHER INFORMATION
Item 1. Legal Proceedings
Item 2. Changes in Securities
Item 3. Defaults Upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
* * * * * *
Signature
<PAGE>
PART I. -- FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
COMPUTER TECHNOLOGY ASSOCIATES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
($000's except for share amounts)
<TABLE>
<CAPTION>
September 30,
1999
DECEMBER 31, 1998 (UNAUDITED)
----------------- ---------------
<S> (C) <C>
ASSETS
Current assets:
Cash and cash equivalents $ - $ -
Accounts receivable, net 48,909 38,171
Other current assets 1,145 2,690
Recoverable income taxes 237
------ ------
Total current assets 50,054 41,098
Furniture and equipment, net 3,748 3,694
Costs in excess of net assets - 6,018
acquired
Other assets, net 3,546 3,974
----- -----
$57,348 $54,784
------- -------
</TABLE>
See accompanying notes to the unaudited condensed consolidated financial
statements.
<PAGE>
COMPUTER TECHNOLOGY ASSOCIATES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
($000's except for share amounts)
<TABLE>
<CAPTION>
DECEMBER 31, 1998 SEPTEMBER 30,
1999
(UNAUDITED)
----------------- --------------
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable--line of credit $16,223 $17,746
Current portion of long-term debt 1,667 1,667
Accounts payable 10,576 5,551
Accrued expenses 4,156 3,589
Excess of billings over costs and
contract prepayments 1,109 556
Other current liabilities 240 89
Income taxes payable 19 -
Deferred income taxes 3,822 3,927
------ ------
Total current liabilities 37,812 33,125
------ ------
Long-term debt, less current portion 1,667 417
Other long-term liabilities 2,135 2,585
Stockholders' equity:
Preferred stock, $1.00 par value
1,000,000 shares authorized and
none issued - -
Common Stock, $.01 par value,
20,000,000 shares authorized and
10,000,000 shares issued 100 100
Capital in excess of par value 7,855 9,066
Retained earnings 15,438 15,515
------ ------
23,393 24,681
Notes receivable from employees (698) (698)
Treasury stock, at cost (6,961) (5,326)
(1,415,905 shares in 1998 and
______________ shares in 1999)
------ ------
Total stockholders' equity 15,734 18,657
------- -------
$57,348 $54,784
======= =======
</TABLE>
See accompanying notes to the unaudited condensed consolidated financial
statements.
<PAGE>
COMPUTER TECHNOLOGY ASSOCIATES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
--------------------------------------
($000'S EXCEPT FOR PER SHARE AMOUNTS)
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------- -------------------
1998 1999 1998 1999
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Contract revenues $30,372 $24,683 $83,105 $83,011
Cost of contract revenues 23,723 24,295 65,412 69,805
Selling, general and 2,403 10,920
administrative expenses 4,033 10,891
Other expenses 489 459 1,258 1,288
----- ----- ----- -----
Operating profit 2,127 (2,474) 5,544 998
Interest expense 289 321 854 869
----- ----- ----- -----
Income before income taxes 1,838 (2,795) 4,690 129
Income taxes 690 (1,118) 1,760 52
----- ----- ----- -----
INCOME FROM CONTINUING (1,677) 77
OPERATIONS 1,148 2,930
Loss from discontinued - - (2,482) -
operations, net of income
taxes
------ ------ ------ ------
Net income (loss) $ 1,148 (1,677) $ 448 $ 77
------ ---- ------ ------
Earnings (loss) per share:
CONTINUING OPERATIONS $ 0.13 $(0.19) $ 0.34 $0.01
DISCONTINUED OPERATIONS - - (0.29) -
------- ------ ------- ------
$ 0.13 $(0.19) $ 0.05 $0.01
------ ------ ------ -------
Earnings (loss) per share
- -assuming dilution:
CONTINUING OPERATIONS $ 0.13 $(0.19) $ 0.32 $0.01
DISCONTINUED OPERATIONS - - (0.27) -
------ ------ ------- ------
$ 0.13 $(0.19) $ 0.05 $0.01
======= ====== ======= ======
</TABLE>
See accompanying notes to the unaudited condensed consolidated financial
statements.
<PAGE>
<TABLE>
<CAPTION>
COMPUTER TECHNOLOGY ASSOCIATES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
-----------------------------------------------
($000'S)
(UNAUDITED)
NINE MONTHS ENDED
SEPTEMBER 30,
-----------------
1998 1999
------- --------
<S> <C> <C>
Operating activities:
Net income (loss) $ 448 $ 77
Non-cash expenses, net 2,090 2,353
Changes in assets and 2,449
liabilities, net 1,556
--- ---
Net cash provided by operating 4,879
activities 4,094
--- -----
Investing activities:
Investments in furniture
and equipment (1,577) (1,264>
Investment in acquired
subsidiary - (3,298)
---- ------
Net cash used in investing
activities (1,577) (4,562)
----- -------
Financing activities:
Net borrowings under bank
line of credit agreement 1,851 1,380
Purchases of treasury stock (2,639) (447)
Repayment of long-term debt (1,750) (1,250)
Other financing activities,
Net 21 -
------ ------
Net cash used in
financing activities (2,517) (317)
--- ---
Net increase (decrease) in cash and
cash equivalents $ - $ -
----- -----
</TABLE>
See accompanying notes to the unaudited condensed consolidated financial
statements.
<PAGE>
COMPUTER TECHNOLOGY ASSOCIATES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1. Basis of Presentation
In the opinion of management, the accompanying unaudited condensed
consolidated financial statements contain all adjustments, consisting only of
normal recurring adjustments, necessary to present fairly the Company's
financial position as of September 30, 1999 and the results of its operations
and its cash flows for the periods ended September 30, 1998 and 1999. The
results of operations presented are not necessarily indicative of the results
that may be expected for the year ending December 31, 1999.
The accompanying financial statements should be read in conjunction with
the audited financial statements for the year ended December 31, 1998 which
are contained in the Company's Annual Report on Form 10-K filed with the
Securities and Exchange Commission.
The provision for income taxes in the statements of operations has been
computed using the estimated annual effective tax rate expected to be
applicable for the full year.
The Company implemented a reorganization which resulted in a change in
its Operating Segments into Federal and Non-Federal Segments. Certain
prior year balances have been reclassified to conform with the current
period presentation.
<PAGE>
NOTE 2. EARNINGS PER SHARE
The following table sets forth the computation of basic and diluted
earnings per share:
<TABLE>
<CAPTION>
THREE MONTHS ENDED
SEPTEMBER 30,
------------------
1998 1999
(IN THOUSANDS, EXCEPT
FOR SHARE DATA)
-------------------------
<S> <C> <C>
Numerator:
Income from continuing operations $ 1,148 $ (1,677)
Loss from discontinued operations - -
------ ------
Net income (loss) for both basic
and diluted earnings per share $ 1,148 $ (1.677)
Denominator:
Denominator for basic earnings per
share --- Weighted average shares
outstanding 8,701,457 8,996,349
Dilutive potential common shares:
Employee stock options 371,091 623,790
--------- ---------
Denominator for diluted earnings per
share --- Adjusted weighted average
shares and assumed conversions 9,072,548 9,620,139
========= =========
</TABLE>
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
------------------
1998 1999
---- ----
(IN THOUSANDS, EXCEPT
FOR SHARE DATA)
Numerator:
<S> <C> <C>
Income from continuing operations $ 2,930 $ 77
Loss from discontinued operations (2,482) -
------ -------
Net income (loss) for both basic
and diluted earnings per share $ 448 $ 77
Denominator:
Denominator for basic earnings per
share --- Weighted average shares
outstanding 8,706,064 8,782,339
Dilutive potential common shares:
Employee stock options 446,602 623,790
--------- ---------
Denominator for diluted earnings per
share --- Adjusted weighted average
shares and assumed conversions 9,152,666 9,406,129
========= =========
</TABLE>
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
and Results of Operations
FORWARD-LOOKING STATEMENTS
In addition to historical information, this Quarterly Report contains
forward-looking statements relating to such matters as anticipated financial
performance, business prospects and similar matters. The Private Securities
Litigation Reform Act of 1995 provides a safe harbor for forward-looking
statements. In order to comply with the terms of the safe harbor, the Company
notes that a variety of factors could cause the Company's actual results and
experience to differ materially from the anticipated results or other
expectations expressed in the Company's forward-looking statements. The risks
and uncertainties that may affect the operation, performance, development and
results of the Company's business include, but are not limited to, those
matters discussed herein in the section entitled "Management's Discussion and
Analysis of Financial Condition and Results of Operations." The words
"believe," "expect," "anticipate," "project" and similar expressions identify
forward-looking statements. Readers are cautioned not to place undue reliance
on these forward-looking statements, which reflect management's analysis only
as of the date hereof. The Company undertakes no obligation to publicly revise
these forward-looking statements to reflect events or circumstances that arise
after the date hereof.
RESULTS OF OPERATIONS
The following tables set forth certain items in the Company's
Consolidated Statements of Operations as a percentage of contract revenues:
<TABLE>
<CAPTION>
Three months Nine months
Ended Ended
September 30, September30,
----------- -----------
1998 1999 1998 1999
<S> <C> <C> <C> <C>
Contract revenues 100.0% 100.0% 100.0% 100.0%
Cost of contract revenues 78.1 98.4 78.7 84.1
Selling, general and administrative
expenses 13.3 9.7 13.1 13.2
Other expenses 1.6 1.9 1.5 1.6
---- ---- ---- ----
Operating profit 7.0 (10.0) 6.7 1.2
Interest expense 1.0 1.3 1.0 1.0
---- ---- ---- ----
Income before income taxes 6.0 (11.3) 5.7 0.2
Provision for income taxes 2.3 (4.5) 2.1 0.1
---- ---- ---- ----
Income from continuing operations 3.7 (6.8) 3.6 0.1
Loss from discontinued operations 0.0 - (3.0) -
----- ----- ----- -----
Net income (loss) 3.7 (6.8) 0.6 0.1
==== ==== ==== ====
</TABLE>
The following tables set forth certain items in the Company's Statements
of Operations by operating segment:
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
(In thousands of dollars) SEPTEMBER 30, SEPTEMBER 30,
-------------- --------------
1998 1999 1998 1999
<S> <C> <C> <C> <C>
Contract revenues:
Federal $15,736 $12,512 $49,479 $42,559
Non-Federal 14,636 12,171 33,626 40,452
------- ------- ------- -------
$30,372 $24,683 $83,105 $83,011
======= ======== ======= =======
Operating profit (loss):
Federal 474 370 1,966 3,877
Non-Federal 2,142 (2,385) 4,836 (1,591)
Non-Federal
------ ------ ------ ------
2,616 (2,015) 6,802 2,286
Other Expenses 489 459 1,258 1,288
------ ------ ------ ------
$2,127 $ (2,474) $5,544 $ 998
====== ====== ====== ======
</TABLE>
THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO
THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 1998
CONTRACT REVENUES. Contract revenues declined 19% to $24.7 million for the
three months ended September 30, 1999 from $30.4 million for the three months
ended September 30, 1998. Contract revenues remained virtually unchanged at
$83.0 million for the nine months ended September 30, 1999 compared with $83.1
million for the nine months ended September 30, 1998. Declining revenues in
the quarter are attributable to the completion of several large federal
programs including a contract with the Air Force Space Command in Colorado
Springs.
Federal contract revenues decreased 20% to $12.5 million for the three
months ended September 30, 1999 from $15.7 million for the three months ended
September 30, 1998. Contract revenues decreased 14% to $42.6 million for the
nine months ended September 30, 1999 from $49.5 million for the nine months
ended September 30, 1998.
Non-federal contract revenues decreased 17% to $12.2 million for the three
months ended September 30, 1999 from $14.6 million for the three months ended
September 30, 1998. This decrease is due to the completion of several large
Year 2000 contracts during the year that had contributed heavily to revenue in
the third quarter of 1998. Contract revenues increased 20% to $40.5 million
for the nine months ended September 30, 1999 from $33.6 million for the nine
months ended September 30, 1998. The increase in non-federal revenue for the
nine-month period ending September 30, 1999 compared to the comparable period
in 1998 stems from the large number of Year 2000 embedded effort contracts
acquired in the first half of this year.
COST OF CONTRACT REVENUES. Cost of contract revenues increased to $24.3
million, or 98.4% of contract revenues, for the three months ended September
30, 1999, from $23.7 million, or 78.1% of contract revenues, for the
comparable period in 1998. Cost of contract revenues increased to $69.8
million, or 84.1% of contract revenues, for the nine months ended September
30, 1999, from $65.4 million, or 78.7% of contract revenues, for the
comparable period in 1998. Losses on two large state contracts recognized in
1999 combined with higher than expected overhead costs resulted in higher
costs of contract revenues.
SG&A. Selling, general and administrative expenses (SG&A) decreased to
$2.4 million, or 9.7% of contract revenues, for the three months ended
September 30, 1999, from $4.0 million, or 13.3% of contract revenues, for the
comparable period in 1998. SG&A remained virtually unchanged at $10.9 million,
or 13.2% of contract revenues, for the nine months ended September 30, 1999,
compared with $10.9 million, or 13.1% of contract revenues, for the comparable
period in 1998. Indirect cost saving measures enacted by the Company in
reaction to declining revenues in the quarter account for the decrease in SG&A
expense for the three month period ended September 30, 1999 compared to the
comparable period in 1998.
OTHER EXPENSES. Other expenses remained unchanged at $0.4 million but
increased as a percent of revenue to 1.9% for the three months ended September
30, 1999, from 1.6% of contract revenues, for the comparable period in 1998.
Other expenses were $1.3 million, or 1.6% of contract revenues, for the nine
months ended September 30, 1999, virtually unchanged from last year.
OPERATING PROFIT. As a result of the foregoing, the Company's operating
profit decreased to $(2.5) million, or (10.0)% of contract revenues, for the
three months ended September 30, 1999, from $2.1 million, or 7.0% of contract
revenues, for the comparable period in 1998. Operating profit decreased to
$1.0 million, or 1.2% of contract revenues, for the nine months ended
September 30, 1999, from $5.5 million, or 6.7% of contract revenues, for the
comparable period in 1998.
The Federal Group's operating profit decreased from $0.5 million to $0.4
million in the three months ended September 30, 1999 compared to the same
period last year. For the nine months ended September 30, 1999, operating
profit increased to $3.9 million from $2.0 million in the comparable period in
1998. These significant increases are due primarily to the higher margin Year
2000 embedded systems contracts.
The non-federal Group experienced an operating loss of $2.4 million and
$1.6 million for the three months and nine months ended September 30, 1999,
respectively, compared to an operating profit of $2.1 million and $4.8 million
for the comparable periods in 1998. The operating loss is due primarily to
operating losses of $4.0 million on two contracts with the State of Texas
which are now complete.
The Rey Consulting Group had an operating loss of $0.1 million for the
period.
LIQUIDITY AND CAPITAL RESOURCES
Operations provided $4.9 million of cash during the first nine months of
1999, primarily from the net income after adjustment for non-cash expenses of
$2.4 million and other working capital changes of $2.4 million. Cash used in
investing activities was $4.6 million comprised of $3.3 million for the
acquisition of the Rey Consulting Group and $1.3 million for purchases of
furniture and equipment. Cash used in financing activities was $0.3 million,
primarily from net borrowings under the bank line of credit agreement of $1.4
million offset by $0.4 million for purchases of treasury stock and $1.3
million for repayments of long-term debt.
The Company has a credit facility with a bank providing the ability to
borrow up to $23 million, including a revolving facility of $18 million and a
$5 million term facility. At September 30, 1999, there was $17.7 million
outstanding on the revolving facility and $2.1 million outstanding on the term
facility.
The Company believes that cash flow from operations and available bank
borrowings will provide adequate funds for continued operations for the next
twelve months.
The Company has been unable to comply with certain of the original
financial covenants of its bank credit facility at September 30, 1999, due to
operating losses incurred. The Company and its bank have agreed to
modifications of the covenants through the original maturity of the credit
facility on September 30, 2000 and relaxed covenants for the quarter ending
September 30, 1999. The bank and the Company have also agreed to a higher
effective interest rate for the remainder of the term or until the Company can
comply with the original financial covenants.
The Company believes it has good relationships with its bank and that the
bank will continue to work with the Company as it seeks to improve its
financial condition. The Company anticipates that it will be able to enter
into a new credit facility that includes a long term, revolving credit
commitment. However, the inability of the Company to renew its existing credit
facility or to obtain a replacement credit facility on the same or similar
terms could have a material adverse effect on the Company' liquidity,
financial condition and results of operations.
OTHER MATTERS
On September 13, 1999, the Company made a loan to Dr. Velez of $750,000
for the purchase of a new home related to his relocation to the Company's
California offices. The note is payable upon demand not later than September
13, 2004 and bears no interest. The note is collateralized by a like amount of
value in Dr. Velez's shares of the Company's stock.
The Company has assigned certain individuals to identify and correct Year
2000 compliance issues. Information Technology ("IT") systems with non-
compliant code are expected to be modified or replaced with systems that are
Year 2000 compliant. The individuals are also responsible for investigating
the readiness of suppliers, customers, and other third parties along with the
development of contingency plans where necessary.
All IT systems have been inventoried and assessed for compliance, and
detailed plans are in place for required system modifications or replacements.
Systems conversion and testing activities are underway with virtually all of
the systems already compliant. Additional work, where necessary, will continue
through the fourth quarter. Inventories and assessments of non-IT systems have
been completed. Progress of the Year 2000 compliance program is continuously
being monitored by senior management.
The Company has identified critical suppliers, customers and other third
parties and has surveyed their Year 2000 remediation programs. Risk
assessments and contingency plans, where necessary, will be finalized by the
year-end 1999. The Company does not expect any material disruption of its
systems or processes as a result of the Year 2000.
Incremental costs directly related to Year 2000 issues are estimated to
be $575,000 to be incurred between 1998 and 1999 of which $525,000 (or 91%)
has been spent to date. Approximately 10% of the total estimated spending
represents costs to modify existing systems. Costs incurred prior to 1998 were
immaterial. This estimate assumes that the Company will not incur significant
Year 2000 related costs on behalf of suppliers, customers or other third
parties.
The Company's most likely potential risk is the inability of some
customers to order and pay on a timely basis. Contingency plans for Year 2000-
related interruptions are being developed and will include, but not be limited
to, the development of emergency backup and recovery procedures, remediation
of existing systems parallel with installation of new systems and
identification of alternate suppliers. All plans have been essentially
completed by the end of the third quarter of 1999.
The Company's Year 2000 efforts are ongoing and its overall plan, as well
as the consideration of contingency plans, will continue to evolve as new
information becomes available. While the Company anticipates no major
interruption of its business activities, that will be dependent, in part, upon
the ability of third parties to properly remediate their IT and non-IT systems
in a timely manner. Although the Company has implemented the actions described
above to address third party issues, it has no ability to influence the
compliance actions of such parties. Accordingly, while the Company believes
its actions in this regard should have the effect of reducing Year 2000 risks,
it is unable to eliminate the ultimate effect Year 2000 risks will have on the
Company's operating results.
<PAGE>
PART II. -- OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
In September 1999, the U.S. Court of Federal Appeals rendered its
decision in a claim brought by the Company against the General
Services Administration (GSA). The court found for the GSA. The
Company was seeking $1.1 million. The Company had reserved amounts in
anticipation of this finding. Consequently, the Company expects no
material change in its results of operations as a result of the
Court's decision. The Company is considering an appeal.
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
No reports on Form 8-K were filed during the quarter ended September 30,
1999.
<PAGE>
SIGNATURE
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.
COMPUTER TECHNOLOGY ASSOCIATES, INC.
NOVEMBER 15, 1999 /S/ GREGORY H. WAGNER
---------------------
Gregory H. Wagner
Executive Vice President,
Chief Financial Officer,
Principal Accounting Officer
and Treasurer
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<CAPTION>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 40662
<ALLOWANCES> 2491
<INVENTORY> 0
<CURRENT-ASSETS> 41098
<PP&E> 10355
<DEPRECIATION> 6661
<TOTAL-ASSETS> 54784
<CURRENT-LIABILITIES> 33125
<BONDS> 0
<COMMON> 100
0
0
<OTHER-SE> 18557
<TOTAL-LIABILITY-AND-EQUITY> 54784
<SALES> 83011
<TOTAL-REVENUES> 83011
<CGS> 69805
<TOTAL-COSTS> 69805
<OTHER-EXPENSES> 12208
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 869
<INCOME-PRETAX> 129
<INCOME-TAX> 52
<INCOME-CONTINUING> 77
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 77
<EPS-BASIC> .01
<EPS-DILUTED> .01
</TABLE>
