<PAGE>
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
EXCHANGE ACT OF 1934
For the quarterly period ended: October 5, 1997
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____________________to______________
Commission FILE NUMBER: 1-11012
-------
GLACIER WATER SERVICES, INC.
----------------------------
(Exact name of registrant as specified in its charter)
Delaware 33-0493559
- -------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2261 Cosmos Court, Carlsbad, California 92009
- -------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(760) 930-2420
---------------
(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 issuer's class of
common stock as of the latest practicable date: 3,228,075 shares of common
stock, $.01 par value, outstanding at October 5, 1997.
1
<PAGE>
PART 1 - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
GLACIER WATER SERVICES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
OCTOBER 5, DECEMBER 31,
1997 1996*
---------- ------------
ASSETS (unaudited)
Current assets:
Cash . . . . . . . . . . . . . . . . . . . . . $ 10 $ 11
Accounts receivable. . . . . . . . . . . . . . 290 311
Inventories. . . . . . . . . . . . . . . . . . 2,251 1,701
Prepaid commissions and other. . . . . . . . . 1,044 1,084
------- -------
Total current assets . . . . . . . . . . . . 3,595 3,107
Property and equipment, net of accumulated
depreciation. . . . . . . . . . . . . . . . . . 48,619 37,999
Other assets . . . . . . . . . . . . . . . . . . 6,301 4,961
------- -------
Total assets . . . . . . . . . . . . . . . . . . $58,515 $46,067
------- -------
------- -------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable . . . . . . . . . . . . . . . $ 871 $ 640
Accrued commissions. . . . . . . . . . . . . . 2,193 988
Accrued liabilities. . . . . . . . . . . . . . 1,948 1,654
------- -------
Total current liabilities. . . . . . . . . . 5,012 3,282
Long-term debt . . . . . . . . . . . . . . . . . 26,022 15,820
Deferred income taxes. . . . . . . . . . . . . . 2,979 2,979
Stockholders' equity:
Preferred stock, $.01 par value;
100,000 shares authorized,
no shares issued or outstanding . . . . . . . - -
Common stock, $.01 par value;
10,000,000 shares authorized, 3,228,075 and
3,208,575 shares issued and outstanding,
respectively. . . . . . . . . . . . . . . . . 34 34
Additional paid-in capital . . . . . . . . . . . 15,481 15,284
Retained earnings. . . . . . . . . . . . . . . . 12,550 12,231
Treasury stock; 170,500 shares, at cost. . . . . (3,563) (3,563)
------- -------
Total stockholders' equity . . . . . . . . . . 24,502 23,986
------- -------
Total liabilities and stockholders' equity . . . $58,515 $46,067
------- -------
------- -------
* Amounts derived from audited information
See accompanying notes
2
<PAGE>
GLACIER WATER SERVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except shares and per share data)
(unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
OCTOBER 5, SEPTEMBER 30, OCTOBER 5, SEPTEMBER 30,
1997 1996 1997 1996
---------- ------------- ---------- -------------
<S> <C> <C> <C> <C>
Revenues . . . . . . . . . . . . . . . . . . . $ 17,138 $ 13,709 $ 44,352 $ 35,760
Operating costs and expenses:
Operating expenses . . . . . . . . . . . . . 10,573 8,302 27,482 22,009
Selling, general and administrative
expenses . . . . . . . . . . . . . . . . . 1,992 1,408 5,461 4,155
Depreciation and amortization. . . . . . . . 2,317 1,704 6,515 4,991
Non-recurring acquisition charges. . . . . . 1,721 -- 3,062 --
--------- --------- --------- ---------
Total operating costs and expenses . . . . 16,603 11,414 42,520 31,155
--------- --------- --------- ---------
Income from operations . . . . . . . . . . . . 535 2,295 1,832 4,605
Interest expense (net) and other . . . . . . . 532 174 1,370 553
--------- --------- --------- ---------
Income before income taxes . . . . . . . . . . 3 2,121 462 4,052
Income tax provision (benefit) . . . . . . . . (29) 565 143 1,337
--------- --------- --------- ---------
Net income . . . . . . . . . . . . . . . . . . $ 32 $ 1,556 $ 319 $ 2,715
--------- --------- --------- ---------
--------- --------- --------- ---------
Net income per common and
common equivalent share. . . . . . . . . . . $ .01 $ .46 $ .10 $ .80
--------- --------- --------- ---------
--------- --------- --------- ---------
Weighted average common and
common equivalent shares outstanding . . . . 3,351,034 3,398,650 3,324,525 3,389,893
--------- --------- --------- ---------
--------- --------- --------- ---------
</TABLE>
See accompanying notes
3
<PAGE>
GLACIER WATER SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
NINE MONTHS ENDED
OCTOBER 5, SEPTEMBER 30,
1997 1996
---------- ------------
Cash flows from operating activities:
Net income. . . . . . . . . . . . . . . . . . . . $ 319 $ 2,715
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization . . . . . . . . . 6,515 4,991
Loss on disposal of assets. . . . . . . . . . . 195 --
Change in operating assets and liabilities:
Accounts receivable . . . . . . . . . . . . . . (108) 262
Inventories . . . . . . . . . . . . . . . . . . (383) (711)
Prepaid commissions and other . . . . . . . . . 296 (370)
Payments for prepaid marketing incentives . . . (1,295) (502)
Other assets. . . . . . . . . . . . . . . . . . (61) (139)
Accounts payable, accrued commissions
and other accrued liabilities. . . . . . . . . 1,323 1,285
--------- ---------
Net cash provided by operating activities . . 6,801 7,531
--------- ---------
Cash flows from investing activities:
Purchase of property and equipment. . . . . . . . (241) (411)
Net investment in vending equipment . . . . . . . (7,969) (5,067)
Proceeds from sale of property and equipment 111 --
Purchase of Aqua-Vend . . . . . . . . . . . . . . (9,355) --
--------- ---------
Net cash used in investing activities . . . . (17,454) (5,478)
--------- ---------
Cash flows from financing activities:
Proceeds from long-term borrowings. . . . . . . . 25,140 10,010
Principal payments on long-term borrowings. . . . (14,684) (10,808)
Proceeds from issuance of stock . . . . . . . . . 196 111
Purchase of treasury stock. . . . . . . . . . . . -- (529)
--------- ---------
Net cash provided by (used in)
financing activities 10,652 (1,216)
--------- ---------
Net increase (decrease) in cash . . . . . . . . . . (1) 837
Cash, beginning of period . . . . . . . . . . . . . 11 29
--------- ---------
Cash, end of period . . . . . . . . . . . . . . . . $ 10 $ 866
--------- ---------
--------- ---------
Supplemental disclosure of cash flow information:
Interest paid . . . . . . . . . . . . . . . . . . $ 1,506 $ 702
--------- ---------
--------- ---------
Income taxes paid . . . . . . . . . . . . . . . . $ 365 $ 563
--------- ---------
--------- ---------
See accompanying notes
4
<PAGE>
GLACIER WATER SERVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
October 5, 1997
(unaudited)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CHANGE IN FISCAL YEAR
In the first quarter of 1997, the Company reported that it had
prospectively changed its financial reporting year from a fiscal year of
twelve calendar months ending December 31 to a fiscal year of 52 or 53 weeks
ending on the Friday closest to December 31. In order to more closely align
its fiscal reporting to its business cycle, the Company has modified its
fiscal reporting to end its fiscal year on the Sunday closest to December 31.
Accordingly, the third quarter ended on October 5, 1997 and contained 93
days, and the Company's fiscal year will end on January 4, 1998. The period
from December 31, 1996 to January 3, 1997 is not significant to the Company's
nine-month operations, and has not been reported separately.
BASIS OF PRESENTATION
In the opinion of the Company's management, the accompanying
consolidated financial statements reflect all adjustments (consisting only of
normal recurring accruals) necessary for a fair presentation of the
consolidated financial position of the Company and the consolidated results
of its operations and its cash flows for the three- and nine-month periods
ending October 5, 1997 and September 30, 1996. Although the Company believes
that the disclosures in these financial statements are adequate to make the
information presented not misleading, certain information, including footnote
information, normally included in financial statements prepared in accordance
with generally accepted accounting principles has been condensed or omitted
pursuant to the rules and regulations of the Securities and Exchange
Commission. Results of operations for the period ended October 5, 1997 are
not necessarily indicative of results to be expected for the full year. For
further information, refer to the consolidated financial statements and
footnotes thereto included in the Company's Annual Report on Form 10-K for
the year ended December 31, 1996.
RECLASSIFICATION
Certain prior year amounts have been reclassified to conform to the
current presentation.
2. ACQUISITION
On March 28, 1997, the Company purchased substantially all of the assets
of the Aqua-Vend division of McKesson Water Products Company, a wholly-owned
subsidiary of McKesson Corporation, for $9.0 million in cash plus certain
direct costs, including sales tax on assets purchased. The transaction was
accounted for under the purchase method, and the purchase price and related
direct costs were allocated based on the estimated fair values of assets
acquired and liabilities assumed, as follows (in thousands):
Inventories $ 208
Prepaid expenses 255
Vending equipment 7,565
Other fixed assets 145
Prepaid marketing incentives 1,225
Other non-current assets 110
Sales tax liability (153)
------
$9,355
------
------
5
<PAGE>
GLACIER WATER SERVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
October 5, 1997
(unaudited)
The unaudited consolidated pro forma results of operations for the nine
months ended October 5, 1997 and September 30, 1996 presented below assume
that the transaction occurred as of the beginning of the respective periods
(in thousands, except per share amounts):
Nine Months Ended
October 5, September 30,
1997 1996
---------- -------------
Net revenues $47,580 $48,943
Income from operations 825 3,961
Net income (loss) (689) 2,053
Net income (loss) per common share ($.21) $.61
3. INVENTORIES
Inventories consist of raw materials, repair and spare parts and vending
machines in process of assembly, and are stated at the lower of cost (moving
weighted average) or market. Costs associated with the assembly of vending
machines are accumulated until machines are completed, at which time the
costs are transferred to property and equipment.
At October 5, 1997 and December 31, 1996, inventories consisted
primarily of raw materials and repair and spare parts.
4. SUPPLEMENTARY BALANCE SHEET INFORMATION
Included in Prepaid commissions and other are commission payments made
to certain retailers based on a percentage of estimated quarterly vending
machine revenues, as well as other prepaid expenses incurred in the normal
course of business. Prepaid commissions were $79,000 and $490,000 at October
5, 1997 and December 31, 1996, respectively.
Included in Other assets are prepaid marketing incentives which
represent payments made to the Company's retailers for the placement of the
Company's machines at store locations. Prepaid marketing incentives, net of
accumulated amortization were $5,695,000 and $4,606,000 at October 5, 1997
and December 31, 1996, respectively.
5. NET INCOME PER SHARE
Net income per share of common stock is computed on the basis of the
weighted average shares of common stock outstanding plus common equivalent
shares arising from the effect of dilutive stock options, using the treasury
stock method.
In March 1997, the Financial Accounting Standards Board adopted
Statement No. 128 "Earnings Per Share" ("Statement No. 128"), which is
effective for periods ending after December 15, 1997. Pro forma net income
per share computed pursuant to Statement No. 128 would be $.01 and $.10,
respectively, for the three- and nine-month periods ended October 5, 1997,
and $.46 and $.80, respectively, for the three- and nine-month periods ended
September 30, 1996.
6
<PAGE>
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITIONS AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
OVERVIEW
The Company previously reported that effective January 1, 1997, it had
prospectively changed its fiscal year from twelve calendar months ending
December 31 to a 52- or 53-week fiscal year ending on the Friday closest to
December 31. As a result of this change, the Company's 1997 fiscal quarters
each contain 13 calendar weeks. In order to more closely align its fiscal
reporting to its business cycle, the Company has modified its fiscal
reporting to end its fiscal year on the Sunday closest to December 31.
Accordingly, the third quarter ended on October 5, 1997 and contained 93
days, and the Company's fiscal year will end on January 4, 1998. The change
in fiscal reporting was not applied retroactively, as there would be no
impact on the operating results for the first two quarters.
On March 28, 1997, the Company purchased substantially all of the assets of
the Aqua-Vend division of McKesson Water Products Company, a wholly-owned
subsidiary of McKesson Corporation. The assets purchased included
approximately 3,000 water vending machines. In connection with the
acquisition, the Company developed a detailed integration plan which included
the removal of approximately 600 Aqua-Vend machines from service, the
upgrading and modification of the majority of the remaining Aqua-Vend
machines and the rationalization and relocation of Aqua-Vend machines within
Glacier's network of machines. The revenues and operating costs associated
with these machines from March 29, 1997 are included in the Company's results
of operations.
During the third quarter, the Company substantially completed the Aqua-Vend
integration activities and incurred non-recurring expenses of $1,721,000
related to these activities. As of October 5, 1997, the Company had
incurred total non-recurring expenses of $3,062,000 to complete the
integration of the Aqua-Vend machines. The Company does not expect to incur
any further non-recurring expenses in the fourth quarter.
In addition to the non-recurring expenses described above, the Company also
incurred expenses resulting from certain inefficiencies and redundancies in
its operating and general and administrative areas, related to absorbing the
Aqua-Vend personnel and operations. The Company believes that the Aqua-Vend
operating and administrative activities have now been fully rationalized with
those of Glacier, and all inefficiencies and redundancies have been
eliminated.
During the third quarter, the Company installed 109 new outside machines and
83 in-store machines and removed 326 Aqua-Vend machines, to finish the
quarter with a total of 12,170 machines in operation, compared with 8,894 at
September 30, 1996. Included in the total at October 5, 1997 are 460
in-store machines, compared with 87 at September 30, 1996.
REVENUES
Revenues for the quarter ended October 5, 1997 increased 25.0% to
$17,138,000, from $13,709,000 in the third quarter of 1996. Revenues for the
first nine months of 1997 increased 24.0% to $44,352,000, from $35,760,000 in
the same period last year. The increases are primarily the result of the
increased number of machines in operation throughout the quarter and
nine-month periods. The increases, however, did not keep pace with the 36.8%
increase in the number of machines in operation since September 30, 1996 due
primarily to unusually mild weather during July and August in California, the
Company's largest and most important market.
7
<PAGE>
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITIONS AND RESULTS OF OPERATIONS - (Continued)
COSTS AND EXPENSES
Operating expenses for the quarter increased to $10,573,000, or 61.7% of
revenues, compared to $8,302,000, or 60.6% of revenues in the second quarter
of 1996. Operating expenses for the nine- month period increased to
$27,482,000, or 62.0% of revenues, compared to $22,009,000, or 61.5% of
revenues in 1996. The total dollar increase is due to the additional
commissions and service costs associated with the additional machines in
1997. The absolute increase in costs is due also in part to inefficiencies
in servicing and other short term increases in service costs experienced as
the Company focused its efforts on completing the integration of Aqua-Vend in
the third quarter. These increased costs related to Aqua-Vend are in
addition to the specific costs associated with the Company's identified
integration projects that are reported separately as non-recurring charges.
The increase in operating expenses as a percentage of revenues for both the
quarter and nine-month period is a result of these increases in servicing
costs, as well as the effect of softer revenues in the third quarter,
discussed above.
Selling, general and administrative ("SG&A") expenses for the quarter
increased to $1,992,000, or 11.6% of revenues, compared to $1,408,000, or
10.3% of revenues in the third quarter of 1996. SG&A expenses for the nine
month period increased to $5,461,000, or 12.3% of revenues, compared to
$4,155,000, or 11.6% of revenues in 1996. The increase in total dollars is
due to an increase in the Company's activities supporting and promoting the
in-store machine program, as well as additional administrative expenses
incurred as a result of the Aqua-Vend acquisition. The increase in SG&A as
a percentage of revenues for both the quarter and nine-month period resulted
primarily from the effect of softer sales in the third quarter, discussed
above.
Depreciation and amortization expense for the quarter increased to
$2,317,000, compared to $1,704,000 in the third quarter of 1996. Depreciation
and amortization expense for the nine-month period increased to $6,515,000,
compared to $4,991,000 in the prior year. The increases are the result of the
net installation of approximately 875 new Glacier machines and the addition of
approximately 2,400 Aqua-Vend machines since September 30, 1996.
The Company had expected to incur a total of approximately $3.5 million in
non-recurring expenses related to the integration of Aqua-Vend's operations
with Glacier's. Specifically, the integration plan included costs to close
certain Glacier locations and write-off obsolete assets, to upgrade the
Aqua-Vend machines to Glacier's servicing and operability standards, to
rationalize and relocate equipment between Aqua-Vend and Glacier locations
and to change the signage on Aqua-Vend machines to that used by Glacier. As
of October 5, 1997, the Company has completed substantially all of these
activities at a total cost of $3,062,000. The Company does not expect to
incur any additional costs related to the integration project in the fourth
quarter.
Interest expense for the quarter increased to $532,000, compared to $174,000
in the third quarter of 1996. Interest expense for the nine-month period
increased to $1,370,000 compared to $553,000 in the prior year. The
increases are due to the higher outstanding balances on the Company's bank
line of credit throughout 1997. Borrowings throughout the year were used to
finance the Company's investment in new machines, and to finance the
acquisition of Aqua-Vend.
In the third quarter, the Company recorded an income tax benefit to reflect
the cumulative effect of reducing the effective tax rate from 37.5% to 31%
for the nine-month period ended October 5, 1997. The Company reduced its tax
rate to reflect the impact of certain tax credits, and it expects the tax
rate to approximate 31% for fiscal year 1997. In the third quarter of 1996,
the Company's effective tax
8
<PAGE>
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITIONS AND RESULTS OF OPERATIONS - (Continued)
rate of 26.6% reflects a similar cumulative adjustment to reduce the tax rate
to 33% for the nine-month period ended September 30, 1996.
As a result of the foregoing, net income for the quarter ended October 5, 1997
declined to $32,000, or $.01 per share, from $1,556,000, or $.46 per share in
the prior year. For the nine-month period ended October 5, 1997, net income
declined to $319,000, or $.10 per share, from $2,715,000, or $.80 per share
for the same period last year.
LIQUIDITY AND CAPITAL RESOURCES
The Company's primary sources of liquidity and capital resources are cash
flows from operations and funds available under the Company's bank credit
agreement. The credit agreement provides for borrowings of up to $35 million
and requires monthly interest payments at the bank's prime rate (8.5% per
annum at October 5, 1997) or LIBOR plus 1.75%. The credit agreement provides
for a two-year interest-only revolving period which converts to a five-year
term note due and payable July 1, 2003. The agreement is collateralized by
substantially all assets of the Company and requires, among other things,
that the Company maintain certain debt coverage and other financial ratios.
For the nine-month period ended October 5, 1997, net cash provided by
operations was approximately $6.8 million, the Company made capital
investments in vending machines and other equipment of approximately $8.2
million, and invested approximately $9.4 million in the purchase of
Aqua-Vend. As of October 5, 1997, the Company had a deficit in working
capital of $1.4 million. Because the Company does not have significant trade
accounts receivable and product inventories, working capital will vary from
time to time depending on the timing of payables.
Approximately $26.0 million of borrowings were outstanding and $9.0 million
was available under the credit agreement. The purchase price of the Aqua-Vend
assets was funded by additional borrowings under the Company's credit
agreement. The Company believes its cash flow generated from operations and
borrowings available under its credit agreement will be sufficient to meet
its anticipated operating and capital requirements, including its investment
in vending equipment, for at least the next twelve months.
STATEMENTS IN THIS REPORT THAT ARE NOT PURELY HISTORICAL ARE FORWARD-LOOKING
STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995. THESE FORWARD-LOOKING STATEMENTS WITH RESPECT TO THE FINANCIAL
CONDITION AND RESULTS OF OPERATIONS OF THE COMPANY INVOLVE RISKS AND
UNCERTAINTIES INCLUDING, BUT NOT LIMITED TO, TRADE RELATIONS, DEPENDENCE ON
CERTAIN LOCATIONS AND COMPETITION. FURTHER INFORMATION ON POTENTIAL FACTORS
WHICH COULD AFFECT THE FINANCIAL CONDITION AND RESULTS OF OPERATIONS OF THE
COMPANY ARE INCLUDED IN THE FILINGS OF THE COMPANY WITH THE SECURITIES AND
EXCHANGE COMMISSION, INCLUDING, BUT NOT LIMITED TO, THE COMPANY'S ANNUAL
REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 1996.
9
<PAGE>
PART II - OTHER INFORMATION
ITEM 5. OTHER INFORMATION
On October 28, 1997, the Company filed a lawsuit against Pure-Fill
Corporation ("Pure-Fill") and Dennis E. Disanto, an officer and owner of
Pure-Fill, in the United States District Court for the Southern District of
California. Mr. Disanto currently holds two patents issued by the United
States Patent and Trademark Office which pertain to water vending equipment.
Mr. Disanto has communicated to the Company that certain features of the
Company's indoor water vending machines violate his patents.
On the advice of patent counsel to the Company, the lawsuit was filed by
the Company as a defensive measure against Pure-Fill and Mr. Disanto,
seeking a declaration that the patents held by Mr. Disanto and used by
Pure-Fill relating to water vending machines are invalid under United States
patent law and that the Company's water vending machines do not infringe any
valid claim of the patents. The Company believes that this litigation will
not have a material adverse effect on the Company's business, financial
condition or operating results.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a. EXHIBITS
Exhibit 27. Financial Data Schedule
b. REPORTS ON FORM 8-K
None.
10
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
GLACIER WATER SERVICES, INC.
Date: November 13, 1997 By: /s/ Jerry A. Gordon
-------------------- ------------------------------
Jerry A. Gordon
President and Chief
Operating Officer
Date: November 13, 1997 By: /s/ Brenda K. Foster
-------------------- ------------------------------
Brenda K. Foster
Vice President, Controller
11
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JAN-04-1998
<PERIOD-START> JAN-01-1997
<PERIOD-END> OCT-05-1997
<CASH> 10
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 2,251
<CURRENT-ASSETS> 3,595
<PP&E> 70,350
<DEPRECIATION> (21,731)
<TOTAL-ASSETS> 58,515
<CURRENT-LIABILITIES> 5,012
<BONDS> 0
0
0
<COMMON> 34
<OTHER-SE> 24,468
<TOTAL-LIABILITY-AND-EQUITY> 24,502
<SALES> 44,352
<TOTAL-REVENUES> 44,352
<CGS> 0
<TOTAL-COSTS> 42,520
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,370
<INCOME-PRETAX> 462
<INCOME-TAX> 143
<INCOME-CONTINUING> 319
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 319
<EPS-PRIMARY> .10
<EPS-DILUTED> .10
</TABLE>
