UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE PERIOD ENDED SEPTEMBER 30, 1995
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER 1-5005
SELAS CORPORATION OF AMERICA
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
PENNSYLVANIA 23-1069060
(STATE OR OTHER JURISDICTION OF (IRS EMPLOYER IDENTIFICATION NO.)
INCORPORATION OR ORGANIZATION)
DRESHER, PENNSYLVANIA 19025
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
(215) 646-6600
(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.
(X) YES ( ) NO
INDICATE THE NUMBER OF SHARES OUTSTANDING OF EACH OF THE ISSUER'S CLASSES OF
COMMON STOCK, AS OF THE LATEST PRACTICABLE DATE.
CLASS OUTSTANDING AT OCTOBER 27, 1995
COMMON SHARES, $1.00 PAR VALUE 3,460,050 (exclusive of 242,376
treasury shares)
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SELAS CORPORATION OF AMERICA
I N D E X
Page
Number
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets as of
September 30, 1995 and December 31, 1994 . . . . . 3, 4
Consolidated Statements of Operations for the
Three Months Ended September 30, 1995
and 1994 . . . . . . . . . . . . . . . . . . . . 5
Consolidated Statements of Operations for the
Nine Months Ended September 30, 1995 and 1994. . . 6
Consolidated Statements of Cash Flows
for the Nine Months Ended September 30,
1995 and 1994 . . . . . . . . . . . . . . . . . . 7
Consolidated Statement of Shareholders' Equity
for the Nine Months Ended September 30, 1995 . . . 8
Notes to Consolidated Financial Statements . . . 9, 10, 11
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations . . . . . . . . . . . . . . . . 12, 13, 14
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K . . . . . 15
-3-
SELAS CORPORATION OF AMERICA
Consolidated Balance Sheets
Assets
September 30, December 31,
1995 1994
(Unaudited) (Audited)
Current assets
Cash, including cash equivalents of
$1,326,000 in 1995 and $4,497,000
in 1994 . . . . . . . . . . . . . . . . $ 5,550,217 $ 5,812,508
Accounts receivable (including unbilled
receivables of $2,844,000 in 1995
and $1,695,000 in 1994, less allowance
for doubtful accounts of $551,000 in
1995 and $513,000 in 1994) . . . . . . . 20,190,912 21,480,083
Inventories . . . . . . . . . . . . . . . 9,289,830 8,210,027
Deferred income taxes . . . . . . . . . . 1,551,612 1,414,952
Other current assets . . . . . . . . . . . 1,172,983 1,189,942
Total current assets . . . . . . . . . 37,755,554 38,107,512
Investment in unconsolidated affiliates . . 1,054,705 1,705,080
Property, plant and equipment
Land . . . . . . . . . . . . . . . . . . . 1,149,746 1,102,963
Buildings . . . . . . . . . . . . . . . . 11,782,153 11,332,798
Machinery and equipment . . . . . . . . . 16,693,213 15,162,425
29,625,112 27,598,186
Less: Accumulated depreciation . . . . . 13,028,687 11,291,064
Net property, plant and equipment . . . 16,596,425 16,307,122
Deferred pension cost. . . . . . . . . . . . 337,841 379,178
Notes receivable . . . . . . . . . . . . . 379,239 376,996
Excess of cost over net assets of acquired
subsidiary, less accumulated amortization
of $725,000 and $476,000 . . . . . . . . . 12,541,278 12,790,019
Other assets including patents, less
amortization . . . . . . . . . . . . . . . 415,698 454,416
$69,080,740 $70,120,323
=========== ===========
See accompanying notes to the consolidated financial statements.
-4-
SELAS CORPORATION OF AMERICA
Consolidated Balance Sheets
Liabilities and Shareholders' Equity
September 30, December 31,
1995 1994
(Unaudited) (Audited)
Current liabilities
Notes payable . . . . . . . . . . . . . . $ 3,629,061 $ --
Current maturities of long-term debt . . 1,910,126 2,389,664
Accounts payable . . . . . . . . . . . . 6,412,987 10,563,966
Federal, state and foreign income taxes . 412,319 446,624
Customers' advance payments on contracts 480,679 761,792
Guarantee obligations and estimated future
costs of service . . . . . . . . . . . 1,270,252 1,156,296
Other accrued liabilities . . . . . . . . 5,102,686 4,853,978
Total current liabilities . . . . . . 19,218,110 20,172,320
Long-term debt . . . . . . . . . . . . . . 9,919,283 11,136,028
Pension plan obligation . . . . . . . . . . 450,463 491,800
Other postretirement benefit obligations . 4,008,986 3,939,303
Deferred income taxes . . . . . . . . . . . 1,196,328 1,282,959
Contingencies and commitments
Shareholders' equity
Common shares, $1 par; 10,000,000 shares
authorized; 3,702,426 and 3,697,426
shares issued, respectively . . . . . . 3,702,426 3,697,426
Additional paid-in capital . . . . . . . 13,512,005 13,484,640
Retained earnings . . . . . . . . . . . . 15,771,525 14,886,035
Foreign currency translation adjustment 1,796,174 1,524,372
Minimum pension liability adjustment (112,623) (112,623)
Less: 242,376 common shares held in
treasury, at cost . . . . . . . . . . . (381,937) (381,937)
Total shareholders' equity . . . . . 34,287,570 33,097,913
$69,080,740 $70,120,323
=========== ===========
See accompanying notes to the consolidated financial statements.
-5-
SELAS CORPORATION OF AMERICA
Consolidated Statements of Operations
(Unaudited)
Three Months Ended
September 30, September 30,
1995 1994
Sales, net $15,713,794 $15,490,043
Operating costs and expenses
Cost of sales 11,360,221 10,454,437
Selling, general and
administrative expenses 3,400,626 3,706,519
Operating income 952,947 1,329,087
Interest (expense) (353,835) (335,269)
Interest income 101,282 90,978
Other income (expense), net 23,356 10,973
Income before income taxes 723,750 1,095,769
Income taxes 350,132 508,014
Net income $ 373,618 $ 587,755
=========== ===========
Earnings per common and
common equivalent share $.11 $.17
=========== ===========
Weighted average common and common
equivalent shares outstanding 3,460,000 3,455,000
See accompanying notes to the consolidated financial statements.
-6-
SELAS CORPORATION OF AMERICA
Consolidated Statements of Operations
(Unaudited)
Nine Months Ended
September 30, September 30,
1995 1994
Sales, net $54,159,475 $55,890,361
Operating costs and expenses
Cost of sales 39,673,818 39,767,896
Selling, general and
administrative expenses 10,996,288 10,887,874
Operating income 3,489,369 5,234,591
Interest (expense) (975,208) (977,749)
Interest income 254,450 206,217
Other income (expense), net (38,264) (67,350)
Income before income taxes 2,730,347 4,395,709
Income taxes 1,256,649 1,822,005
Net income $ 1,473,698 $ 2,573,704
=========== ===========
Earnings per common and
common equivalent share $.43 $.75
=========== ===========
Weighted average common and common
equivalent shares outstanding 3,459,000 3,453,000
See accompanying notes to the consolidated financial statements.
-7-
SELAS CORPORATION OF AMERICA
Consolidated Statements of Cash Flows
(Unaudited)
Nine Months Ended
September 30, September 30,
1995 1994
Cash flows from operating activities:
Net income . . . . . . . . . . . . . . . . . $ 1,473,698 $ 2,573,704
Adjustments to reconcile net income to net
cash provided (used) by operating activities:
Depreciation and amortization . . . . . 2,055,713 1,999,090
Equity in (income) of unconsolidated
affiliate . . . . . . . . . . . . . . (15,638) (33,414)
(Gain) on sale of equity in unconsoli-
dated affiliate . . . . . . . . . . . (148,767) --
(Gain) loss on sale of property and
equipment . . . . . . . . . . . . . . (7,789) 9,139
Deferred taxes . . . . . . . . . . . . . (205,405) (181,117)
Changes in operating assets and liabilities:
Decrease in accounts receivable . . 3,292,491 3,402,607
(Increase) in inventories . . . . . . (1,100,264) (762,644)
(Increase) decrease in other assets . 61,190 (1,289,680)
(Decrease) in accounts payable . . . . (5,573,321) (1,925,234)
Increase in accrued expenses . . . . 243,171 1,595,971
Increase (decrease) in customer advances (305,778) 321,651
Increase in other liabilities . . . 34,347 44,601
Net cash provided (used) by operating
activities . . . . . . . . . . . (196,352) 5,754,674
Cash flows from investing activities:
Purchases of property, plant and equipment . (1,597,046) (1,482,633)
Proceeds from sale of property, plant and
equipment . . . . . . . . . . . . . . . 46,024 24,498
Investment in subsidiary . . . . . . . . . . -- (16,601)
Proceeds from sale of equity in unconsolidated
affiliate . . . . . . . . . . . . . . . . 270,666 --
Receipt of dividend from unconsolidated affiliate -- 34,538
Loan made to unconsolidated affiliate . . . -- (288,064)
Net cash provided (used) by
investing activities . . . . . . (1,280,356) (1,728,262)
Cash flows from financing activities:
Proceeds from short-term bank borrowings . . 3,558,894 --
Repayments of short-term bank borrowings . . -- (3,297,501)
Proceeds from long-term debt . . . . . . . . -- 1,100,000
Repayments of long-term debt . . . . . . . . (1,922,618) (1,402,340)
Proceeds from exercise of stock options . . 28,281 124,437
Payment of dividends . . . . . . . . . . . . (588,209) (518,057)
Net cash provided (used) by financing
activities . . . . . . . . . . . 1,076,348 (3,993,461)
Effect of exchange rate changes on cash . . . 138,069 155,680
Net increase (decrease) in cash and cash
equivalents . . . . . . . . . . . . . . . (262,291) 188,631
Cash and cash equivalents, beginning of period 5,812,508 7,147,358
Cash and cash equivalents, end of period . . $ 5,550,217 $ 7,335,989
=========== ===========
See accompanying notes to the consolidated financial statements.
-8-
SELAS CORPORATION OF AMERICA
Consolidated Statement of Shareholders' Equity
Nine Months Ended September 30, 1995
(Unaudited)
Common Stock Additional
Number of Paid-In
Shares Amount Capital
Balance, January 1, 1995 3,697,426 $3,697,426 $13,484,640
Net income
Exercise of 5,000 stock
options 5,000 5,000 27,365
Cash dividends paid
($.06 per share for the
third quarter, $.055
per share for each of
the first two quarters)
Translation gain
Balance, September 30, 1995 3,702,426 $3,702,426 $13,512,005
========= ========== ===========
Foreign Minimum
Currency Pension
Retained Translation Liability
Earnings Adjustment Adjustment
Balance, January 1, 1995 $14,886,035 $ 1,524,372 $(112,623)
Net income 1,473,698
Exercise of 5,000 stock
options
Cash dividends paid
($.06 per share for the
third quarter, $.055
per share for each of the
first two quarters) (588,208)
Translation gain 271,802
Balance, September 30, 1995 $15,771,525 $1,796,174 $(112,623)
=========== ========== =========
Total
Treasury Shareholders'
Stock Equity
Balance, January 1, 1995 $(381,937) $33,097,913
Net income 1,473,698
Exercise of 5,000 stock
options 32,365
Cash dividends paid
($.06 per share for the
third quarter, $.055 per
share for each of the
first two quarters) (588,208)
Translation gain 271,802
Balance, September 30, 1995 $(381,937) $34,287,570
========= ===========
(See accompanying notes to the consolidated financial statements)
-9-
SELAS CORPORATION OF AMERICA
PART I - FINANCIAL INFORMATION
ITEM 1. Notes to Consolidated Financial Statements (Unaudited)
1. In the opinion of management, the accompanying consolidated condensed
financial statements contain all adjustments (consisting of normal
recurring adjustments) necessary to present fairly Selas Corporation of
America's consolidated financial position as of September 30, 1995 and
December 31, 1994, and the consolidated results of its operations for the
three and nine months ended September 30, 1995 and 1994 and consolidated
statements of shareholders' equity and cash flows for the nine months then
ended.
2. The accounting policies followed by the Company are set forth in note 1 to
the Company's financial statements in the 1994 Selas Corporation of
America Annual Report.
3. Inventories consist of the following:
September 30, December 31,
1995 1994
Raw material $2,619,488 $2,281,342
Work-in-process 2,597,804 2,200,579
Finished products and
components 4,072,538 3,728,106
Total $9,289,830 $8,210,027
========== ==========
4. Income Taxes
Consolidated income taxes for the nine month periods ended September 30,
1995 and 1994 are $1,256,000 and $1,822,000 which result in effective tax
rates of 46.0% and 41.4%, respectively. The rate of tax in relation to
pre-tax income in 1995 has been impacted by the settlement of a tax issue
at one of the Company's European subsidiaries in the amount of
approximately $139,000.
5. Legal Proceedings
The Company is a defendant along with a number of other parties in
approximately 210 lawsuits as of December 31, 1994 (650 as of December 31,
1993) alleging that plaintiffs have or may have contracted asbestos-
related diseases as a result of exposure to asbestos products or equipment
containing asbestos sold by one or more named defendants. Due to the non-
informative nature of the complaints, the Company does not know whether
any of the complaints state valid claims against the Company. The Company
is also one of approximately 500 defendants in a class action on behalf of
approximately 2700 present or former employees of a Texas steel mill
alleging that products supplied by the defendants created a poisoned
atmosphere that caused
-10-
SELAS CORPORATION OF AMERICA
PART I - FINANCIAL INFORMATION
ITEM 1. Notes to Consolidated Financial Statements (Continued)
5. Legal Proceedings (Continued)
unspecified physical harm. These cases are being defended by one or more
of the Company's insurance carriers presently known to be "at risk".
Through October 1993, the legal costs of defense of the asbestos and steel
mill cases were shared among the insurance carriers (92%) and the Company
(8%). The lead insurance carrier settled a number of the cases in 1993
and requested that the Company pay a portion of the settlement amount.
The Company declined to do so because no such payment is required by the
express terms of the policies. The lead carrier then purported in October
1993 to abrogate the arrangement under which the defense costs had been
shared, and the Company responded by tendering all of the cases to the
lead carrier and demanding that the lead carrier honor its obligations
under its policies to pay 100% of the cost of defense and 100% of all
settlements and judgments up to the policy limits. The lead carrier
settled approximately 450 claims in 1994 with no request for the Company
to participate in any settlement and has not requested that the Company
participate in any settlement for 1995. Management is of the opinion that
the disposition of these lawsuits will not materially affect the Company's
consolidated financial position or results of operation.
The Company is also involved in other lawsuits arising in the normal
course of business. While it is not possible to predict with certainty
the outcome of these matters, management is of the opinion that the
disposition of these lawsuits will not materially affect the Company's
consolidated financial position or results of operation.
6. Statements of Cash Flows
Supplemental disclosures of cash flow information.
Nine Months Ended
September 30, September 30,
1995 1994
Interest received . . . . . $ 189,795 $ 184,143
Interest paid . . . . . . . $ 867,657 $1,033,925
Income taxes paid . . . . . $1,729,179 $1,383,516
7. Accounts Receivable
At September 30, 1995, the Company had $1,387,408 of trade accounts
receivable due from the major U.S. automotive manufacturers and $2,662,135
of trade accounts receivable due from hearing aid manufacturers. The
Company also had $7,027,354 in receivables from long-term contracts for
customers in the steel industry in North America, Europe and Asia.
-11-
SELAS CORPORATION OF AMERICA
PART I - FINANCIAL INFORMATION
ITEM 1. Notes to Consolidated Financial Statements (Continued)
8. Earnings Per Common and Common Equivalent Share
Earnings per common and common equivalent share are computed based on the
weighted average number of shares outstanding each quarter, giving effect
to the exercise of outstanding stock options, where dilutive.
-12-
SELAS CORPORATION OF AMERICA
PART I - FINANCIAL INFORMATION
ITEM 2: Management's Discussion and Analysis of Financial Condition
and Results of Operations
Consolidated net sales for the three months ended September 30, 1995 increased
to $15.7 million and decreased to $54.2 million for the nine months ended
September 30, 1995 compared to $15.5 million and $55.9 million for the three and
nine months ended September 30, 1994. Net sales for the Company's heat
processing segment were $6.7 million and $24.9 million for the three and nine
months ended September 30, 1995 compared to $6.0 million and $26.8 million for
the same periods in 1994. The increase in sales in this business segment for
the third quarter of 1995 is due to an increase in revenues from engineered
contracts. The decrease in sales for the nine months was caused by a lack of
engineered contracts at the beginning of 1995. Sales and earnings of large
engineered systems contracts are recognized on the percentage-of-completion
method. Such contracts generally require more than twelve months to complete.
Consolidated backlog for this business segment is $30.4 million at September 30,
1995 compared to $19.4 million at September 30, 1994. Net sales for the
precision electromechanical and plastics component segment increased to $6.3
million and $18.5 million for the three and nine months ended September 30, 1995
compared to $5.5 million and $16.8 million for the same periods in 1994. The
improved sales are due to higher sales to the hearing aid industry. Net sales
for the tire holders, lifts and related products segment decreased to $2.7
million and $10.7 million for the three and nine months ended September 30, 1995
compared to $4.1 million and $12.3 million for the same periods in 1994. Lower
sales for the three and nine month periods were due to the loss of the contract
to provide tire lifts for the Chrysler mini-van line.
The Company's consolidated gross profit margin as a percentage of sales
decreased to 27.7% and 26.7% for the three and nine month periods ended
September 30, 1995 compared to 32.5% and 28.8% for the same periods in 1994.
The Company's heat processing segment's gross profit margins were 27.7% and
24.9% for the three and nine month periods ended September 30, 1995 compared to
31.8% and 27.6% for the same periods in 1994. The lower gross profit margins
for the segment are due primarily to lower profit margins on one large
engineered steel contract which is near completion and will be completed in the
fourth quarter of this year. Gross profit margins for the Company's precision
electromechanical and plastic components segment for the three and nine month
periods ended September 30, 1995 were 37.1% and 36% compared to 40.7% and 37%
for the same periods in 1994. The lower gross profit margins for this segment
are due to a change in the mix of products sold. The gross profit margins for
the Company's tire holders, lifts and other products segment decreased to 6.5%
and 15.1% for the three and nine months ended September 30, 1995 compared to
21.9% and 20.4% for the same periods in 1994. The lower gross profit margins
are due to higher labor and material costs which have not been passed on to the
automotive customers through selling price increases, along with a drop in units
produced and sold due to the loss of the Chrysler mini-van contract.
-13-
SELAS CORPORATION OF AMERICA
PART I - FINANCIAL INFORMATION
ITEM 2: Management's Discussion and Analysis of Financial Condition
and Results of Operations (Continued)
Selling, general and administrative expenses for the three month and nine month
periods ended September 30, 1995 were $3,400,000 and $10,996,000 compared to
$3,706,000 and $10,888,000 for the same periods in 1994. The lower costs in the
current quarter are due to cost reductions and the slightly higher costs for the
current nine months of 1% is due to general increases.
Interest income for the three and nine months ended September 30, 1995 increased
to $101,000 and $255,000 compared to $90,000 and $206,000 for the same periods
in 1994. The increase in interest is due in part to higher investments and
higher rates on the investments. Interest expense for the three and nine month
periods ended September 30, 1995 was $353,000 and $975,000 compared to $335,000
and $978,000 for the same period in 1994. The small increase in interest
expense for the quarter is due to additional short-term borrowings in the
current quarter.
Other income (expense) includes a foreign currency gain of $10,000 for the three
months ended September 30, 1995 and a loss of $129,000 for the nine months ended
September 30, 1995 compared to a loss of $8,000 and a gain of $2,000 for the
same periods in 1994.
Consolidated income taxes for the nine month periods ended September 30, 1995
and 1994 are $1,256,000 and $1,822,000 which result in effective tax rates of
46.0% and 41.4%, respectively. The rate of tax in relation to pre-tax income in
1995 has been impacted by the settlement of a tax issue at one of the Company's
European subsidiaries in the amount of approximately $139,000.
Liquidity and Capital Resources
Consolidated net working capital increased to $18.5 million at September 30,
1995 from $17.9 million as of December 31, 1994. The increase is primarily due
to net income of $1.5 million for the nine months ended September 30, 1995,
partially offset by payments of dividends and long-term borrowings. The largest
changes in the components of working capital is increased inventory of $1.1
million, reduction of current liabilities of $1 million and lower accounts
receivable of $1.3 million.
The Company believes that its present working capital position, combined with
funds expected to be generated from operations and the available borrowings
capacity through its revolving credit loan facilities, will be sufficient to
meet its anticipated cash requirements for operating needs and capital
expenditures for 1995.
-14-
SELAS CORPORATION OF AMERICA
PART I - FINANCIAL INFORMATION
ITEM 2: Management's Discussion and Analysis of Financial Condition
and Results of Operations (Continued)
In March 1995, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 121 "Accounting for the Impairment of Long-
Lived Assets and for Long-Lived Assets to be Disposed Of" (Statement No. 121).
The provisions of Statement No. 121 is effective for the Company for years
beginning after December 15, 1995. Management believes that Statement 121 will
have no impact on the Consolidated Financial Statements of the Company.
In October 1995, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 123 "Accounting for Stock-Based Compensation"
(Statement No. 123). The provisions of Statement No. 123 is effective for the
Company for years beginning after December 15, 1995. Management has not
determined the impact, if any, Statement No. 123 will have on the Consolidated
Financial Statements of the Company.
-15-
SELAS CORPORATION OF AMERICA
PART II - OTHER INFORMATION
ITEM 6. Exhibits and Reports on Form 8-K
(b) Reports on Form 8-K - The Company did not file any reports on Form 8-
K during the quarter for which this report is filed.
SELAS CORPORATION OF AMERICA
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.
SELAS CORPORATION OF AMERICA
(Registrant)
Date: November 10, 1995
Robert W. Ross
Vice President and CFO
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF SELAS CORPORATION OF AMERICA FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 5,550,217
<SECURITIES> 0
<RECEIVABLES> 20,742,260
<ALLOWANCES> 551,348
<INVENTORY> 9,289,830
<CURRENT-ASSETS> 37,755,554
<PP&E> 29,625,112
<DEPRECIATION> 13,028,687
<TOTAL-ASSETS> 69,080,740
<CURRENT-LIABILITIES> 19,218,110
<BONDS> 9,919,283
<COMMON> 3,702,426
0
0
<OTHER-SE> 30,585,144
<TOTAL-LIABILITY-AND-EQUITY> 69,080,740
<SALES> 54,159,475
<TOTAL-REVENUES> 54,159,475
<CGS> 39,673,818
<TOTAL-COSTS> 39,673,818
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 12,146
<INTEREST-EXPENSE> 975,208
<INCOME-PRETAX> 2,730,347
<INCOME-TAX> 1,256,649
<INCOME-CONTINUING> 1,473,698
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,473,698
<EPS-PRIMARY> 0.43
<EPS-DILUTED> 0.00
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