<PAGE>
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 March 31, 1997
OR
[ ] Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period from to .
Commission File No. 1-11822
-------------------------------------------------------
TRANSCOR WASTE SERVICES, INC.
-------------------------------------------------------
(Exact name of registrant as specified in its charter)
Florida 65-0369288
------------------------ ---------------------------------------
(State of incorporation) (I.R.S. Employer Identification No.)
1502 Second Avenue, East, Tampa, Florida 33605
-------------------------------------------------------
(Address of registrant's principal executive offices,
including zip code)
(813) 248-5885
-------------------------------------------------------
(Registrant's telephone number, including area code)
Not applicable
-------------------------------------------------------
(Former name, former address, and former fiscal year,
if changed since last report)
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 [ ]<PAGE>
Applicable Only to Issuers Involved in Bankruptcy
Proceedings During the Preceding Five Years
Indicate by a check mark whether the registrant has filed all
documents and reports required to be filed by Sections 12, 13, or
15(d) of the Securities Exchange Act of 1934 subsequent to the
distribution of securities under a plan confirmed by a court.
Yes [ ] No [ ]
Applicable Only to Corporate Issuers
The number of shares of Common Stock outstanding on May 14, 1997, was
4,010,000 shares.<PAGE>
TRANSCOR WASTE SERVICES, INC.
FORM 10-Q
INDEX
PAGE
PART I. FINANCIAL INFORMATION
Item 1. Consolidated balance sheets at December 31,
1996 and March 31, 1997 (unaudited) . . . . 1 - 2
Consolidated statements of operations for
the three months ended March 31, 1996
and 1997 (unaudited) . . . . . . . . . . . . . . 3
Consolidated statements of cash flows for
the three months ended March 31, 1996
and 1997 (unaudited) . . . . . . . . . . . . . . 4
Notes to consolidated financial statement . . 5 - 7
Item 2. Management's discussion and analysis of
financial condition and results of
operations . . . . . . . . . . . . . . . . . 8 - 10
PART II. OTHER INFORMATION
Item 1. Legal proceedings . . . . . . . . . . . . . . . . 10
Item 2. Changes in securities . . . . . . . . . . . . . . 10
Item 3. Defaults upon senior securities . . . . . . . . . 10
Item 4. Submission of matters to a vote of security
holders . . . . . . . . . . . . . . . . . . . . . 10
Item 5. Other information . . . . . . . . . . . . . . . . 10
Item 6. Exhibits and reports on Form 8-K . . . . . . . . . 10
Signatures . . . . . . . . . . . . . . . . . . . . 11
Exhibit 11 Calculation of income (loss) per share . . . . 12<PAGE>
SECURITIES AND EXCHANGE COMMISSION FORM 10-Q
PART I - FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
TRANSCOR WASTE SERVICES, INC.
CONSOLIDATED BALANCE SHEETS
ASSETS
December 31, March 31,
1996 1997
------------- -------------
(unaudited)
Current assets:
Cash . . . . . . . . . . . . . . . . .$ 1,437,788 $ 1,328,102
Due from affiliate . . . . . . . . . . 1,953,236 1,953,236
Accounts receivable - trade, net . . . 6,230,484 6,298,074
Costs and estimated earnings in excess
of billings on uncompleted
contracts . . . . . . . . . . . . . . 230,869 701,672
Income tax refund receivable . . . . . 422,567 376,973
Deferred income taxes . . . . . . . . . 639,079 639,079
Other current assets . . . . . . . . . 255,552 92,020
------------- -------------
Total current assets . . . . . . . . . 11,169,575 11,389,156
------------- -------------
Property and equipment, net . . . . . . . 26,115,277 26,634,965
Intangible assets, net . . . . . . . . . 898,853 864,677
Due from affiliate . . . . . . . . . . . 6,840,516 7,127,607
Other assets . . . . . . . . . . . . . . 985,608 1,419,734
------------- -------------
$ 46,009.829 $ 47,436,139
============= =============
See accompanying notes.<PAGE>
TRANSCOR WASTE SERVICES, INC.
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
December 31, March 31,
1996 1997
------------- -------------
(unaudited)
Current liabilities:
Accounts payable, trade . . . . . . . .$ 4,255,150 $ 4,538,955
Accrued expenses . . . . . . . . . . . 4,536,778 4,680,065
Billings in excess of costs and
estimated earnings on uncompleted
contracts . . . . . . . . . . . . . . 170,771 182,137
Due to affiliate . . . . . . . . . . . 368,199 1,159,335
Current portion of long-term debt . . . 3,453,168 3,689,995
------------- -------------
Total current liabilities . . . . . . 12,784,066 14,250,487
------------- -------------
Long-term debt, including debt owed to
KVN of $2,003,258 at December 31, 1996
and March 31, 1997 . . . . . . . . . . 16,807,059 16,746,663
Deferred income taxes . . . . . . . . . . 3,299,355 3,299,355
Commitments and contingencies . . . . . . - -
Stockholders' equity:
Preferred stock, $.001 par value;
1,000,000 shares authorized; none
issued and outstanding . . . . . . . . - -
Capital stock, $.001 par value;
10,000,000 shares authorized;
4,010,000 shares issued and
outstanding . . . . . . . . . . . . . 4,010 4,010
Capital in excess of par value . . . . 12,193,547 12,193,547
Retained earnings . . . . . . . . . . . 969,798 990,083
------------- -------------
Less treasury stock, at cost 13,167,355 13,187,640
(10,000 shares) . . . . . . . . . . . (48,006) (48,006)
------------- -------------
Total stockholders' equity . . . . . . 13,119,349 13,139,634
------------- -------------
$ 46,009,829 $ 47,436,139
============= =============
See accompanying notes.<PAGE>
TRANSCOR WASTE SERVICES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended
March 31,
---------------------------
1996 1997
------------- -------------
(unaudited) (unaudited)
Revenue . . . . . . . . . . . . . . . . .$ 11,058,965 $ 12,342,968
Expenses:
Operating expenses . . . . . . . . . . 9,305,113 9,893,256
Selling, general, and administrative
expenses . . . . . . . . . . . . . . . 1,720,797 2,107,788
------------- -------------
Operating income . . . . . . . . . . . . 33,055 341,924
Interest expense . . . . . . . . . . . . 325,891 308,669
------------- -------------
Income (loss) before provision for income
taxes . . . . . . . . . . . . . . . . . (292,836) 33,255
Provision for income taxes (benefit) . . (114,206) 12,970
------------- -------------
Net income (loss) . . . . . . . . . . . .$ (178,630)$ 20,285
============= =============
Share data:
Primary income (loss) per share . . . .$ (.04)$ .01
Fully diluted income (loss) ============= =============
per share . . . . . . . . . . . . . .$ (.04)$ .01
============= =============
Weighted average number of shares
outstanding used in computations:
Primary . . . . . . . . . . . . . . . 3,991,319 4,024,902
============= =============
Fully diluted . . . . . . . . . . . . 3,991,319 4,024,902
============= =============
See accompanying notes.<PAGE>
TRANSCOR WASTE SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three months ended
March 31,
---------------------------
1996 1997
------------- -------------
(unaudited) (unaudited)
Cash flows from operating activities:
Net income (loss) . . . . . . . . . . .$ (178,630)$ 20,285
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation . . . . . . . . . . . . 861,241 960,709
Loss on disposal of equipment . . . . 28,787 12,949
Changes in operating assets and
liabilities:
Accounts receivable . . . . . . . . 432,956 (67,590)
Costs and estimated earnings in
excess of billings on uncompleted
contracts . . . . . . . . . . . . 424,668 (470,803)
Income tax refund receivable . . . (52,033) 45,594
Other assets . . . . . . . . . . . (65,716) (312,021)
Accounts payable . . . . . . . . . (913,001) 283,805
Accrued expenses . . . . . . . . . 189,704 143,287
Billings in excess of costs and
estimated earnings on uncompleted
contracts . . . . . . . . . . . . (178,983) 11,366
------------- -------------
Total adjustments . . . . . . . . . . 727,623 607,296
Net cash provided by operating ------------- -------------
activities . . . . . . . . . . . . . . 548,993 627,581
------------- -------------
Cash flows from investing activities:
Capital expenditures . . . . . . . . . (794,369) (1,423,743)
Proceeds from sale of property and
equipment . . . . . . . . . . . . . . 15,400 6,000
------------- -------------
Net cash used by investing activities . . (778,969) (1,417,743)
------------- -------------
Cash flows from financing activities:
Proceeds from long-term debt . . . . . 611,259 1,031,532
Repayment of long-term debt . . . . . . (938,308) (855,101)
Repayment of advances from KVN . . . . 653,984 504,045
Proceeds from stock warrants . . . . . 60,000 -
------------- -------------
Net cash provided by financing
activities . . . . . . . . . . . . . . 386,935 680,476
------------- -------------
See accompanying notes.<PAGE>
TRANSCOR WASTE SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Continued)
Three months ended
March 31,
---------------------------
1996 1997
------------- -------------
(unaudited) (unaudited)
Net increase (decrease) in cash . . . . . 156,959 (109,686)
Cash, beginning of period . . . . . . . . 3,414,479 1,437,788
------------- -------------
Cash, end of period . . . . . . . . . . .$ 3,571,438 $ 1,328,102
============= =============
See accompanying notes.<PAGE>
TRANSCOR WASTE SERVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Organization and summary of significant accounting policies
Basis of presentation - TransCor Waste Services, Inc. (the
Company ) was formed on November 6, 1992, as a subsidiary of Kimmins
Corp. ( KVN ). KVN owns approximately 74 percent of the outstanding
common stock of the Company. The Company provides solid waste
management services to commercial, industrial, residential, and
municipal customers in the state of Florida.
These financial statements of the Company omit or condense certain
footnotes and other information normally included in the financial
statements prepared in accordance with generally accepted accounting
principles. In the opinion of the Company, all adjustments necessary
for fair presentation of the financial information for the interim
periods reported have included. Such adjustments consist only of
normal recurring items.
Certain amounts in the 1996 consolidated financial statements have
been reclassified to conform to the 1997 presentation.
Intangible assets - Intangible assets consist primarily of the
excess of cost over fair market value of the net assets of the
acquired business, which will be amortized on a straight-line basis
over twenty years, and customer contracts, which will be amortized on
a straight-line basis over five years. Amortization expense was
approximately $25,000 and $34,000 for the three months ended March
31, 1996 and 1997, respectively. Accumulated amortization was
$191,000 and $225,000 at December 31, 1996, and March 31, 1997,
respectively.
Other assets - Other assets consist primarily of pre-contract
costs associated with residential solid waste management contracts
obtained during 1995 and 1996, which are being amortized on a
straight-line basis over five years, the term of the contracts, and
loan costs, which are amortized over the term of the loans.
Amortization expense was $33,000 and $41,000 for the three months
ended March 31, 1996 and 1997, respectively. Accumulated
amortization was $296,000 and $337,000 at December 31, 1996, and
March 31, 1997, respectively.
Earnings per share - Net income (loss) per share is computed based
on the weighted average number of shares of capital stock and stock
options outstanding. Fully diluted earnings per share assumes that
the convertible subordinated debt was converted into common stock as
of the beginning of the year and that the interest expense thereon,
net of taxes, was added to net income (loss).<PAGE>
TRANSCOR WASTE SERVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2. Property and equipment, net
December 31, March 31,
1996 1997
------------- -------------
(unaudited)
Land . . . . . . . . . . . . . . . . .$ 4,610,323 $ 4,610,323
Buildings and improvements . . . . . . 5,621,962 5,633,547
Vehicles . . . . . . . . . . . . . . . 13,459,891 14,106,684
Waste containers and equipment . . . . 12,508,751 13,220,577
Furniture and fixtures . . . . . . . . 547,739 569,302
Construction in progress . . . . . . . 33,462 35,631
------------- -------------
36,782,128 38,176,064
Less accumulated depreciation. . . . . (10,666,851) (11,541,099)
------------- -------------
$ 26,115,277 $ 26,634,965
============= =============
Property and equipment is recorded at cost. Depreciation is
provided using the straight-line method over estimated useful lives,
which range from 3 to 30 years. Depreciation expense was $804,000
and $885,000 for the three months ended March 31, 1996 and 1997,
respectively.<PAGE>
TRANSCOR WASTE SERVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
3. Long-term debt
December 31, March 31,
1996 1997
------------- -------------
(unaudited)
Notes payable, due through February 1,
2002, payable in monthly installments
with interest at varying rates up to
9.5 percent, collateralized by
equipment . . . . . . . . . . . . . .$ 13,055,213 $ 13,311,293
Convertible subordinated term note
with KVN, interest payable in monthly
installments, principal due December
1, 2003, interest at bank's base rate
plus 1 percent . . . . . . . . . . . . 2,003,258 2,003,258
Mortgage notes, principal and interest
payable in monthly installments through
August 1, 2010, interest at varying
rates up to prime plus 1.5 percent,
collateralized by land and buildings . 5,201,756 5,122,107
------------- -------------
20,260,227 20,436,658
Less current portion . . . . . . . . . (3,453,168) (3,689,995)
------------- -------------
$ 16,807,059 $ 16,746,663
============= =============
As of March 31, 1997, the Company has guaranteed a loan agreement
on behalf of KVN and other subsidiaries of KVN in connection with the
Kimmins Employee Stock Ownership Plan, which had an outstanding
balance of $1,800,000 that is recorded in the financial statements of
KVN.
The debt agreements contain certain covenants, the most restrictive
of which require, for KVN, maintenance of a consolidated tangible net
worth, as defined, of not less than $15,900,000, maintenance of a
debt to consolidated tangible net worth ratio of no more than 3.5 to
1.0, consolidated debt service coverage ratio of at least 1.0 to 1.0,
and a fixed charge coverage ratio of not less than 1.0 to 1.0. In
addition, the covenants prohibit the payment of dividends by the
Company without lender approval. For all periods presented, the
Company believes that KVN had complied with or obtained waivers for
all loan covenants.<PAGE>
TRANSCOR WASTE SERVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
4. Stockholders' equity
The Company has authorized 1,000,000 shares of preferred stock
with a par value of $.001 per share, none of which has been issued.
Such preferred stock may be issued in series and will have such
designations, rights, preferences, and limitations as may be fixed by
the Board of Directors.
The convertible subordinated term note is convertible into 400,652
shares of the Company's capital stock at the time the market value
per share equals or exceeds $9.00 for twenty consecutive trading
days.
Warrants to purchase 100,000 shares of the Company's common stock
at $6.00 per share were issued in 1993 to the underwriters of the
Company's initial public offering. Warrants to purchase 10,000
shares of common stock were exercised during March 1996. The
remaining warrants are exercisable through March 25, 1998.<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
COMPARISON OF THREE MONTHS ENDED MARCH 31, 1997 AND 1996
Revenue for the three months ended March 31, 1997, was
$12,343,000, representing an increase of $1,284,000 or approximately
12 percent from $11,059,000 for the three months ended March 31,
1996. The increase in total revenue was primarily attributable to
the Company's demolition operations, which generated revenue of
approximately $3,937,000 for the three months ended March 31, 1997,
compared to approximately $2,502,000 for the same period in 1996.
Operating expenses for the three months ended March 31, 1997, were
$9,893,000, representing an increase of $588,000 or approximately 6
percent from $9,305,000 for the three months ended March 31, 1996.
Operating expenses include fees charged by landfills for waste
disposal (which to date has been the largest component of the
Company's operating expenses), direct labor costs associated with the
collection, transfer, and recycling of waste, and depreciation. The
increase in operating expenses was attributable primarily to volume-
related increases in certain major operational expenses; such as,
landfill fees and direct labor costs.
Selling, general, and administrative expenses for the three months
ended March 31, 1997, were $2,108,000, representing an increase of
$387,000 or 22 percent from $1,721,000 for the three months ended
March 31, 1996. The dollar and percentage increase in selling,
general, and administrative expenses is primarily attributable to
increased overhead costs, such as administrative, sales, and
marketing costs that are associated with higher expected levels of
operations.
Interest expense, net of interest income, for the three months
ended March 31, 1997, was $309,000 as compared to $326,000 for the
three months ended March 31, 1996. The average amount of debt
outstanding was consistent between periods.
The Company's income tax provision was calculated using a rate of
approximately 39 percent for the three month periods ended March 31,
1997 and 1996.
As a result of the foregoing, the Company recorded net income of
$20,000 for the three months ended March 31, 1997, as compared to a
net loss of $179,000 for the three months ended March 31, 1996.<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
At March 31, 1997, the Company had working capital deficit of
$2,861,000 compared to a working capital deficit of $1,614,000 at
December 31, 1996. Working capital was impacted by increases in
accounts payable, accrued expenses and current portion of long-term
debt. Current financial resources, anticipated funds from
operations, and repayment of receivables from affiliate (if needed)
are expected to be adequate to meet cash requirements in the year
ahead and the foreseeable future. At March 31, 1997, the Company had
cash of $1,328,000.
Net cash provided by operating activities during the three months
ended March 31, 1997, was $628,000 compared to $549,000 for the three
months ended March 31, 1996. The increase in cash provided by
operating activities was due primarily to net income earned during
1997, net of changes in certain operating assets and liabilities
(primarily costs and estimated earnings in excess of billings on
uncompleted contracts and accounts payable). Net cash used by
investing activities during the three months ended March 31, 1997,
was $1,417,000, as compared to $779,000 during the three months ended
March 31, 1996, primarily due to capital expenditures for the
purchase of vehicles and equipment. Net cash provided by financing
activities during the three months ended March 31, 1997, was $680,000
as compared to $387,000 for the three months ended March 31, 1996,
primarily as a result of higher levels of debt borrowings.
During the three months ended March 31, 1997 and 1996, the
Company's average trade receivables were outstanding for 47 and 49
days, respectively. Both averages were based on first quarter
revenue annualized and compared to the trade receivable balances at
quarter end. Management believes that the number of days outstanding
for its receivables approximates industry norms. Credit is extended
based on an evaluation of the customer's financial condition. Credit
losses are provided for in the financial statements and have been
within management's expectations.
During the three months ended March 31, 1997 and 1996, the
Company's average trade payables were extended for 35 and 25 days,
respectively. Both averages were based on first quarter operating
and selling, general, and administrative expenses annualized and
compared to trade payable balances at quarter end.
In addition to its own debt, the Company has also guaranteed the
indebtedness (an aggregate of approximately $1,920,000 and $1,800,000
at December 31, 1996, and March 31, 1997, respectively) of the
Kimmins' Employee Stock Ownership Plan Trust, in which employees of
the Company participate.<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
(Continued)
Certain of KVN s debt agreements with a financial institution
contain certain covenants, the most restrictive of which requires,
for KVN, maintenance of a consolidated tangible net worth, as
defined, of not less than $15,900,000, maintenance of a debt to
consolidated tangible net worth ratio of no more than 3.5 to 1.0,
consolidated debt service coverage ratio of not less than 1.0 to 1.0,
and a fixed charge coverage ratio of not less than 1.0 to 1.0. In
addition, the covenants prohibit the payment of dividends by the
Company without lender approval. For all periods presented, the
Company believes that KVN had complied with or obtained waivers for
all loan documents.
The Company intends to expand the range of services offered, while
increasing the size and scope of the customer base for its current
operations. Expansion of the Company's operations, however, will be
dependent upon, among other things, its ability to attract new
customers, successfully manage growth, provide additional services on
a profitable basis, and obtain the resources necessary to pursue
other opportunities.
During February 1997, the Company agreed to purchase 18 rear-end
load vehicles at a total cost of approximately $2,326,000.
Historically, inflation has not had a material effect on the
Company's operations. If inflation increases, the Company will
attempt to increase its prices to offset its increased expenses. No
assurance can be given, however, that the Company will be able to
adequately increase its prices in response to inflation.
Forward-Looking Information
The foregoing discussion in Management s Discussion and Analysis
of Financial Condition and Results of Operations contains forward-
looking statements that reflect management s current views with
respect to future events and financial performance. Such statements
involve risks and uncertainties, and there are certain important
factors that could cause actual results to differ materially from
those anticipated. Some of the important factors that could cause
actual results to differ materially from those anticipated. Some of
the important factors that could cause actual results to differ
materially from those anticipated include, but are not limited to,
economic conditions, competitive factors, and other uncertainties,
all of which are difficult to predict and many of which are beyond
the control of the Company. Due to such uncertainties and risk,
readers are cautioned not to place undue reliance on such forward-
looking statements, which speak only as of the date hereof.<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES (continued)
Effect of Inflation
Inflation has not had, and is not expected to have, a material
impact upon the Company s operations. If inflation increases, the
Company will attempt to increase its prices to offset its increased
expenses. No assurance can be given, however, that the Company will
be able to adequately increase its prices in response to inflation.
PART II - OTHER INFORMATION
Item 1. Legal proceedings
During April 1997, Kimmins Recycling Corp. ( KRC ), a subsidiary
of the Company, filed a claim in the Fourth Judicial Circuit Court of
Florida against the Consolidated City of Jacksonville, Duval County,
Florida. This action challenges the propriety of the City of
Jacksonville, Non-Residential Solid Waste Collection and
Transportation Franchise Ordinance (the Franchise Ordinance ). KRC
believes that, among other things, the Franchise Ordinance impairs
the flow of interstate commerce in violation to the Commerce Clause
of the United States Constitution. KRC is seeking declaratory and
injunctive relief within the jurisdiction of the court and recovery
of damages in excess of $15,000.
Item 2. Changes in securities
None
Item 3. Defaults upon senior securities
None
Item 4. Submission of matters to a vote of security holders
None
Item 5. Other information
None
Item 6. Exhibits and reports on Form 8-K
(a) The following documents are filed as exhibits
to this Form 10-Q:
11. - Calculation of income (loss) per share
27. - Financial Data Schedule (for SEC use only)
(b) No reports on Form 8-K were filed during the
quarter for which this report is filed.<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
TRANSCOR WASTE SERVICES, INC.
Date: May 14, 1997 By: /s/Ira D. Cohen
-------------------------- ----------------------------
Ira D. Cohen
President (Principal
Executive Officer)
Date: May 14, 1997 By: /s/Norman S. Dominiak
-------------------------- ----------------------------
Norman S. Dominiak
Treasurer and Chief
Financial Officer
(Principle Accounting and
Financial Officer)
<PAGE>
EXHIBIT 11
TransCor Waste Services, Inc.
Calculation of Income (Loss) Per Share
Three Months Ended March 31, 1996 and 1997 (unaudited)
1996 1997
------------- -------------
Primary income (loss) per common share:
Net income (loss) . . . . . . . . . . . .$ (178,630)$ 20,285
============= =============
Weighted average shares of common stock
outstanding:
Average shares outstanding . . . . . . 3,991,319 4,000,000
Assumed exercise of stock options . . - 24,902
------------- -------------
Weighted average shares of common stock
outstanding - primary . . . . . . . . . 3,991,319 4,024,902
============= =============
Primary income (loss) per share . . . . .$ (.04)$ .01
============= =============
Fully diluted income (loss) per
common share:
Net income (loss) . . . . . . . . . . . .$ (178,630)$ 20,285
============= =============
Weighted average shares of common stock
outstanding:
Average shares outstanding . . . . . . 3,991,319 4,000,000
Assumed exercise of stock options . . . - 24,902
------------- -------------
Weighted average shares of common stock
outstanding - fully diluted . . . . . . 3,991,319 4,024,902
============= =============
Fully diluted income (loss) per share . .$ (.04)$ .01
============= =============<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 1,328,102
<SECURITIES> 0
<RECEIVABLES> 6,845,463
<ALLOWANCES> (547,389)
<INVENTORY> 0
<CURRENT-ASSETS> 11,389,156
<PP&E> 38,176,064
<DEPRECIATION> (11,541,099)
<TOTAL-ASSETS> 47,436,139
<CURRENT-LIABILITIES> 14,250,487
<BONDS> 0
0
0
<COMMON> 4,010
<OTHER-SE> 13,135,624
<TOTAL-LIABILITY-AND-EQUITY> 47,436,139
<SALES> 12,342,968
<TOTAL-REVENUES> 12,342,968
<CGS> 9,893,256
<TOTAL-COSTS> 9,893,256
<OTHER-EXPENSES> 2,107,788
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 308,669
<INCOME-PRETAX> 33,255
<INCOME-TAX> 12,970
<INCOME-CONTINUING> 20,285
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 20,285
<EPS-PRIMARY> .01
<EPS-DILUTED> .01
</TABLE>
