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 quarter ended December 28, 1997
[ ] Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Commission file number: 0-22048
STARCRAFT CORPORATION
(Exact name of registrant as specified in its charter)
Indiana 35-1817634
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Post Office Box 1903
2703 College Avenue
Goshen, Indiana 46526
(Address of principal executive offices/zip code)
Registrant's telephone number, including area code: 219/533-1105
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 the latest practicable date: January 30, 1998 - 4,133,600
shares of Common Stock, without par value.
<PAGE>
STARCRAFT CORPORATION
Form 10-Q
- INDEX -
PART I. FINANCIAL INFORMATION PAGE
Item 1. Financial Statements
Balance Sheets - December 28, 1997 (Unaudited) 1
and September 28, 1997 (Audited)
Statements of Operations (Unaudited) for the
three month periods ended December 28, 1997
and December 29, 1996 2
Statements of Cash Flow (Unaudited) for the three month 3
periods ended December 28, 1997 and December 29, 1996
Notes to Financial Statements 4-7
Item 2. Management's Discussion and Analysis 8-11
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 12
SIGNATURES 13
<PAGE>
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
STARCRAFT CORPORATION
<TABLE>
<CAPTION>
BALANCE SHEETS December 28, 1997 September 28, 1997
----------------- ------------------
ASSETS (Dollars in Thousands)
Current Assets
<S> <C> <C>
Cash and cash equivalents ..................... $ 389 $ 608
Trade receivables, less allowance for
doubtful accounts of $51,000 ............. 6,287 3,977
Manufacturers' rebates receivable ............. 775 692
Recoverable income tax ........................ 3,260 3,300
Inventories ................................... 8,309 9,270
Other ......................................... 614 444
-------- --------
Total current assets ...................... 19,634 18,291
Property and Equipment
Land, buildings, and improvements ............. 5,864 5,857
Machinery and equipment ....................... 5,884 5,608
-------- --------
11,748 11,465
Less accumulated depreciation ................. 3,716 3,491
-------- --------
8,032 7,974
Goodwill, at amortized cost ........................ 1,428 1,453
Other assets ....................................... 53 61
-------- --------
$ 29,147 $ 27,779
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable, trade ....................... $ 4,429 $ 6,354
Accrued expenses:
Warranty .................................. 1,221 1,337
Compensation and related expenses ......... 147 484
Taxes ..................................... 862 1,060
Other ..................................... 1,622 2,045
-------- --------
Total current liabilities .......................... 8,281 11,280
Long Term Debt ..................................... 11,200 5,696
Deferred Income Taxes .............................. 508 508
Shareholders' Equity
Preferred stock, no par value;
authorized but unissued
2,000,000 shares
Common Stock, no par value;
10,000,000 shares authorized
4,133,600 shares issued as of December 28,
1997 and September 28, 1997 ............... 14,016 14,016
Additional paid-in capital .................... 1,008 1,008
Retained Earnings Deficit ..................... (5,866) (4,729)
-------- --------
Total shareholders' equity ............... 9,158 10,295
-------- --------
$ 29,147 $ 27,779
======== ========
</TABLE>
- 1 -
<PAGE>
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
STARCRAFT CORPORATION
STATEMENTS OF OPERATIONS
3 Months Ended
----------------------------------
Dec. 28, 1997 Dec.29, 1996
------------- ------------
(Dollars in Thousands)
Net Sales
Domestic ...................... $ 9,811 $ 12,589
Export ........................ 3,608 5,080
----------- -----------
13,419 17,669
Cost of Goods Sold ................. 12,214 15,641
----------- -----------
Gross profit .................. 1,205 2,028
Operating Expenses
Selling and promotion ......... 1,288 1,711
General and administrative .... 920 1,791
Restructure charge ............ 0 750
----------- -----------
2,208 4,252
----------- -----------
Operating Loss ............ (1,003) (2,224)
Nonoperating (Expense) Income
Interest, net ................. (172) (60)
Other income, net ............. 38 51
----------- -----------
(134) (9)
----------- -----------
Loss Before Income Taxes... (1,137) (2,233)
Income Tax Credit .................. 0 (891)
----------- -----------
NET LOSS ...................... $ (1,137) $ (1,342)
=========== ===========
BASIC AND DILUTIVE LOSS
PER COMMON SHARE ............ $ (0.28) $ (0.33)
=========== ===========
Average Number of Common and
Common Equivalent
Shares Outstanding .............. 4,133,600 4,118,600
=========== ===========
- 2 -
<PAGE>
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
STARCRAFT CORPORATION
STATEMENTS OF CASH FLOW
<TABLE>
<CAPTION>
3 Months Ended
------------------------------
Dec. 28, 1997 Dec. 29, 1996
------------- -------------
(Dollars in Thousands)
Operating Activities
<S> <C> <C>
Net Loss .......................................... $(1,137) $(1,342)
Adjustments to reconcile net loss to
net cash provided by operating
activities:
Depreciation and amortization ................. 258 291
Non-Cash Restructuring
Charges .................................. 0 637
Change in operating
assets and liabilities:
Receivables .......................... (2,353) 4,276
Inventories .......................... 961 725
Other ................................ (170) (997)
Accounts payable ..................... (1,925) (5,603)
Accrued expenses ..................... (1,074) (1,401)
------- -------
Net Cash used in
operating activities ....................... (5,440) (3,414)
Investing Activities
Purchase of property and equipment ................ (283) (276)
Other ............................................. 0 3
------- -------
Net cash used in
investing activities ...................... (283) (273)
Financing Activities
Borrowings on revolving
credit agreements .............................. 5,504 6,400
Repayments on revolving
credit agreements .............................. 0 (3,100)
Payments on long-term debt ........................ 0 (160)
------- -------
Net cash from financing
activities ................................. 5,504 3,140
Decrease in Cash and Cash
Equivalents ....................................... (219) (547)
Cash and cash equivalents at
beginning of period ............................ 608 1,366
------- -------
Cash and cash equivalents at
end of period .................................. $ 389 $ 819
======= =======
</TABLE>
- 3 -
<PAGE>
NOTES TO FINANCIAL STATEMENTS
STARCRAFT CORPORATION
December 28, 1997
- --------------------------------------------------------------------------------
Note 1. Basis of Presentation
The accompanying unaudited financial statements of Starcraft
Corporation (the "Company") have been prepared pursuant to the
rules and regulations of the Securities and Exchange
Commission. Certain information and footnote disclosures
normally included in annual financial statements prepared in
accordance with generally accepted accounting principles have
been condensed or omitted pursuant to those rules and
regulations. Reference is made to the Company's audited
financial statements set forth in its annual report on Form
10-K for its fiscal year ended September 28, 1997. Certain
fiscal year 1997 amounts were reclassified to be consistent
with the fiscal year 1998 classification.
In the opinion of the management of the Company, the unaudited
financial statements contain all adjustments (which include
only normally recurring adjustments) necessary for a fair
statement of the results of operations for the three month
period ended December 28, 1997 and the three month period
ended December 29, 1996. The results of operations for the
three months ended December 28, 1997 are not necessarily
indicative of the results which may be expected for the year
ending September 27, 1998.
Note 2. Inventories
The composition of inventories is as follows
(dollars in thousands):
December 28, 1997 September 28, 1997
----------------- ------------------
Raw Materials $4,828 $4,654
Work in Process 1,744 1,667
Finished Goods 1,737 2,949
----- -----
$8,309 $9,270
------ ------
- 4 -
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
STARCRAFT CORPORATION
- --------------------------------------------------------------------------------
Note 3. Long-Term Debt
On January 12, 1998, the Company entered into an amended
credit agreement with its bank which was effective as of
December 31, 1997. The agreement has a maturity date of
January 31, 1999. Borrowings are limited to specified
percentages of eligible receivables, inventories, and property
and equipment and are subject to maximum limits of $15 million
through March 30, 1998, $12 million from March 31, 1998
through June 29, 1998, and $10 million thereafter. The
carrying amount of the company's line of credit approximates
fair value.
Borrowings pursuant to the agreement bear interest at the
prime rate of the lending bank plus 1% and are secured by
substantially all of the Company's assets. Fees on the unused
commitment range from 0.125% to 0.250% of the avarage daily
unused portion of the available credit based on the Company's
level of interest, taxes, depreciation, and amortization.
Pursuant to the agreement, the Company must, among other
things, maintain a minimum level of tangible net worth of $6.7
million at December 31, 1997, $6.1 million from January 1,
1998 through June 27, 1998, $7.25 million from June 28, 1998
through September 27, 1998 and $7.6 million thereafter. If
these minimum levels are not maintained, any outstanding
balances become payable upon demand of the bank. The Company's
tangible net worth was $7.7 million at December 28, 1997.
In order to maintain the minimum levels of tangible net worth
through 1998, the Company needs to achieve operating results
substantially consistent with its 1998 operating plan. This
plan calls for 1998 net sales to be slightly lower than 1997
net sales. The Company plans to reduce costs of goods sold
through improved plant operating efficiencies, a new pay
system for production line associates, and the reduction of
carrying costs of its chassis by decreasing inventory levels.
In addition, the Company plans to reduce selling, general and
administrative expenses primarily through reductions in
personnel and employee benefits costs.
Note 4. Consignment Arrangements
The Company obtains vehicle chassis for modification from
major vehicle manufacturers ("OEMs") under the consignment and
restricted sale agreements. These agreements generally provide
that (i) the Company may not obtain certificates of origin or
other evidence of ownership of chassis, (ii) modifications
must conform to standards specified by the OEMs, and (iii)
modifications typically are performed only after a sale has
been negotiated with an OEM approved dealer. The Company
generally ships converted chassis only after dealer acceptance
has been approved by the OEM. The OEMs bill the dealer and
provide warranty for the chassis.
- 5 -
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
STARCRAFT CORPORATION
- --------------------------------------------------------------------------------
Note 4. Consignment Arrangements (Continued)
The agreements are secured by various credit arrangements with
the OEMs. The OEMs may require the Company to purchase chassis
in the event that the restricted sales agreements are
terminated. The Company has not been required to purchase any
chassis during the periods covered by the accompanying
financial statements. The Company pays the OEMs a nominal
carrying charge for the first 90 days. After 90 days the
carrying charges accelerate to approximate market interest
rates. Throughout the consignment period, the Company is
subject to the risk of decline in value of the consigned
chassis.
Consistent with the practice in its industry, the Company
accounts for chassis as consignment inventory. Accordingly,
the Company records chassis inventory and related obligations
only in the event they are required to purchase chassis from
the OEM. Provisions for decline in chassis value are
recognized when, in management's estimation, such provisions
are necessary. Provisions for decline in chassis value,
chassis inventory, and chassis sales are not material in the
accompanying financial statements.
At December 28, 1997, the Company had possession of chassis in
the aggregate amount of $17.4 million (of which $8.1 million
was over 90 days).
Note 5. Restructure Charges
In December 1996 the Company completed the consolidation of
its Imperial Automotive Group manufacturing operation into
Starcraft Automotive Group's manufacturing complex in Goshen,
Indiana. The consolidation reduced excess production capacity,
personnel count and fixed overhead expenses. The Company
recorded a $750,000 restructure charge in the first quarter of
fiscal year 1997.
- 6 -
<PAGE>
STARCRAFT CORPORATION
- --------------------------------------------------------------------------------
Note 6. Recently Adopted Accounting Standards
In February 1997 the Financial Accounting Standards Board
issued Statement 128, "Earnings Per Share", which was adopted
by the Company in the first quarter of fiscal year 1998.
Statement 128 replaced the previously reported primary and
fully diluted earnings per share with basic and diluted
earnings per share. Unlike primary earnings per share, basic
earnings per share excludes any dilutive effects of options,
warrants and convertible securities. Diluted earnings per
share is very similar to the previously reported fully diluted
earnings per share. All earnings per share amounts for all
periods have been presented, and where necessary, restated to
conform to the Statement 128 requirements. The impact of
F.A.S. 128 on prior year amounts was not material. The
computation of basic and diluted loss per share follows:
<TABLE>
<CAPTION>
3 Months
---------------------------------------
Dec. 28, 1997 Dec. 29, 1996
------------- -------------
(In thousands, except per share amounts)
<S> <C> <C>
Numerator:
Numerator for basic and
diluted loss per share - loss
available to common
stockholders ($1,137) ($1,342)
=========== ==========
Denominator:
Denominator for basic
loss per share - weighted
average shares 4,134 4,119
Effect of dilutive securities:
Employee stock options (a) (a)
Denominator for diluted loss per __________ __________
share - adjusted weighted
average shares and assumed
conclusions 4,134 4,119
---------- ==========
Basic Loss Per Share ($0.28) ($0.33)
========== =========
Dilutive Loss Per Share ($0.28) ($0.33)
========== =========
</TABLE>
(a) Calculation does not reflect the effect of the employee
stock options outstanding since their effect is antidilutive.
- 7 -
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
STARCRAFT CORPORATION
================================================================================
RESULTS OF OPERATIONS
Comparison of the three months ended December 28, 1997 (First Quarter Fiscal
Year 1998) to the three months ended December 29, 1996
(First Quarter Fiscal Year 1997)
- --------------------------------------------------------------------------------
Net Sales
Net sales declined $4.2 million (24.1%) to $13.4 million in the first quarter of
fiscal 1998. Domestic sales declined 22.1% from prior year levels which was
consistent with an industry decline of 21% as reported by the Recreational
Vehicle Industry Association. Export sales were $3.6 million in the 1998 fiscal
quarter compared to $5.1 million in 1997. The $1.5 million reduction in export
sales is primarily attributable to a $2 million decline in Asian business,
partially offset by an increase in Middle East business. The 1997 first fiscal
quarter benefitted from the early build of 1997 models for the Japan market.
The domestic conversion market continues to decline due to the increased
popularity and availability of sport utility vehicles and factory minivans,
price pressure from higher chassis costs and lower levels of conversion
inventory being held on dealer retail lots. Export sales continue to be impacted
by the strong U.S. dollar and turmoil in the Asian financial markets.
Gross Profit
Gross profit decreased to $1.2 million (9.0% of sales) in the 1998 fiscal first
quarter from $2.0 million (11.5% of sales) in the 1997 period. The decrease in
gross margin as a percent of sales is attributable to the impact of fixed plant
overhead costs on the lower sales volume, offset by cost savings from the
Company's plant consolidation and restructuring efforts in fiscal year 1997.
Selling and promotion expense
Selling and promotion expense decreased approximately $400,000 to $1.3 million
(9.6% of sales) in the first fiscal 1998 quarter compared to $1.7 million (9.7%
of sales) in fiscal 1997. The reduction is due to the lower domestic sales
volume.
General and Administrative Expense
General and administrative expense declined to $.9 million for the 1998 fiscal
first quarter from $1.8 million in fiscal 1997. The decrease is attributable to
the plant consolidations and personnel restructuring that the Company
implemented in fiscal year 1997.
Restructuring Charge
In the first quarter of fiscal year 1997, the Company consolidated its Imperial
Automotive Group manufacturing operation into Starcraft Automotive Group's
manufacturing complex in Goshen, Indiana and recorded a $750,000 restructure
charge.
- 8 -
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
STARCRAFT CORPORATION
================================================================================
Interest Expense
Interest expense increased to $172,000 in the fiscal 1998 first quarter from
$60,000 in fiscal 1997. The increase is due to higher borrowing levels on the
bank credit line.
Income Taxes
The first quarter does not have a tax credit to offset operating losses because
the tax carry back is fully utilized. The fiscal 1997 first quarter benefitted
from a 40% tax credit carry back.
Loss per Share
Loss per share decreased to $0.28 on 4,133,600 average common shares outstanding
for the fiscal 1998 first quarter from $0.33 on 4,118,600 shares for the same
period a year ago.
SEASONALITY AND TRENDS
The Company's sales and profits are dependent on the automotive markets in the
United States and overseas, primarily Japan and Europe, and the OEM's ability to
supply vehicle chassis. The business tends to be seasonal with stronger domestic
sales in March through July and is influenced by a number of factors including
atypical weather for any sales region and OEM programs affecting the price,
supply and delivery of vehicle chassis. General Motors' chassis represented 60%
of the Company's total unit shipments in the first quarter of fiscal 1998
compared to 70% in 1997's fiscal first quarter. The decline in the General
Motors' percentage is due to the introduction of the redesigned Dodge fullsize
van in December, 1997.
The Company's retail dealers had approximately 2,900 units on hand at the end of
December 1997 compared to 3,600 units at the end of December 1996. Conversion
inventory on dealer lots has decreased for the entire industry relative to prior
year levels. The Company believes dealers are stocking fewer conversion products
because of the growing availability of additional vehicle models such as sport
utility vehicles and factory minivans and a general concern by dealers of the
future of the conversion industry. The OEM's have recently increased their
advertising support and dealer training efforts to support vehicle conversion
products.
The strengthened U.S.Dollar and recent turmoil in financial markets in Asia will
pressure the Company's 1998 export sales and margins.
The Company plans to continue to diversify its products and markets in an effort
to stabilize sales. The vehicle conversion business will continue to be the core
business of the Company, but additional strategies will be implemented in an
attempt to reduce the cyclicality and seasonality of the Company's sales. In
1997 the Company acquired National Mobility, a manufacturer of vehicles for the
physically challenged, and entered the commercial shuttle bus business as a
start to its diversification strategy.
The Company has reviewed its information systems for compatability with year
2000. It has plans in place to replace software deemed incompatable with year
2000 in a timely manner and does not anticpate any material adverse effect from
year 2000 compatability issues.
- 9 -
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
STARCRAFT CORPORATION
================================================================================
LIQUIDITY AND CAPITAL RESOURCES
Operations utilized $5.4 million of cash in the first three months of fiscal
1998 compared to $3.4 million in the fiscal 1997 period. Operating cash was used
in the 1998 period to fund the operating loss and a $4.3 million growth in
working capital.
Trade accounts receivable and payable were significantly changed at December 29,
1997 relative to September 28, 1997. Accounts receivable increased $2.4 million
during the first fiscal 1998 quarter primarily due to the international business
which average a 45 day collection period. At December 28, 1997, international
shipments included in accounts receivable were $3.2 million compared to $.3
million at September 28, 1997. Accounts payable decreased $1.9 million in the
first quarter of fiscal 1998 due to the reduction in domestic sales. Inventory
was reduced $1 million primarily in finished goods as prior year models were
reduced.
Capital expenditures for the 1998 quarter were $283,000 primarily for a new
management information system.
The Company's use of cash for operations and investing activities was financed
by bank debt. At the end of December 1997, bank debt was $11.2 million.
On January 12, 1998, the Company entered into an amended credit agreement with
its bank which was effective as of December 31, 1997. The agreement has a
maturity date of January 31, 1999. Borrowings are limited to specified
percentages of eligible receivables, inventories, and property and equipment and
are subject to maximum limits of $15 million through March 30, 1998, $12 million
from March 31, 1998 through June 29, 1998, and $10 million thereafter.
Borrowings pursuant to the agreement bear interest at prime rate of the lending
bank plus 1% and are secured by substantially all of the Company's assets. Fees
on the unused commitment range from 0.125% to 0.250% of the average daily unused
portion of the available credit based on the Company's level of total interest
bearing liabilities compared to consolidated earnings before interest, taxes,
depreciation, and amortization. Pursuant to the agreement, the Company must,
among other things, maintain a minimum level of tangible net worth of $6.7
million at December 31, 1997, $6.1 million from January 1, 1998 through June 27,
1998, $7.25 million from June 28, 1998 through September 27, 1998 and $7.6
million thereafter. If these minimum levels are not maintained, any outstanding
balances become payable upon demand of the bank. The Company's tangible net
worth at December 28, 1997 was $7.7 million.
In order to maintain the minimum levels of tangible net worth through 1998, the
Company needs to achieve operating results substantially consistent with its
1998 operating plan. This plan calls for 1998 net sales to be approximately six
percent less than 1997 net sales. This reduction results primarily from reduced
sales in the core conversion business partially offset by the inclusion of a
full year of National Mobility Corporation's sales in 1998. The Company plans to
reduce cost of goods sold through improved plant operating efficiencies, a new
pay system for production line associates, and the reduction of carrying costs
of its chassis by decreasing inventory levels. In addition, the Company plans to
reduce selling, general and administrative expenses. In December 1997 the
Company reorganized its sales department and adopted a more focused advertising
plan to reduce selling and promotion costs. General and administrative costs
will be reduced primarily through reductions in personnel and the decrease in
certain employee benefits in 1998.
- 10 -
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
STARCRAFT CORPORATION
================================================================================
In addition to the availability of bank financing, the Company has restricted
sales agreements with General Motors Acceptance Corporation, Chrysler Financial
Corporation and Ford Motor Credit. Pursuant to these agreements, the Company
obtains vehicle chassis from the OEM's for 90 days at nominal rates. If the
Company fails to match a chassis with a dealer order within 90 days after
delivery of the chassis to the Company, carrying charges increase to prime rate
plus 1%.
The Company believes that future cashflows from operations, funds available
under its bank revolving credit agreement, and the continued use of OEM
financing arrangements to manage its chassis inventory will be sufficient to
satisfy its anticipated operating needs and capital improvements for 1998.
The foregoing paragraphs contain forward looking statements regarding cost
savings, adequacy of capital resources, seasonality and supply of , and demand
for, the Company's products, all of which are subject to a number of important
factors which may cause the Company's projections to be materially inaccurate.
Some of such factors are described in the Company's Form 10-K for the year ended
September 28, 1997, under "Discussion of Forward-Looking Information".
- 11 -
<PAGE>
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) The following are filed as exhibits to this report.
Exhibit No.
27 Financial Data Schedule.
(b) No reports on Form 8-K were filed during the quarter
for which this report is filed.
- 13 -
<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.
STARCRAFT CORPORATION
(Registrant)
February 6, 1998 By: /s/ Kelly L. Rose
-----------------------------
Kelly L. Rose
Chairman of the Board and
Chief Executive Officer
By: /s/ Michael H. Schoeffler
-----------------------------
Michael H. Schoeffler
President and Chief Financial Officer
- 13 -
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
registrant's unaudited consolidated financial statements for the three months
ended December 28, 1997 and is qualified in its entirety by reference to such
statements.
</LEGEND>
<CIK> 0000906473
<NAME> Starcraft Corporation
<MULTIPLIER> 1,000
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-27-1998
<PERIOD-START> SEP-29-1997
<PERIOD-END> DEC-28-1997
<EXCHANGE-RATE> 1.000
<CASH> 389
<SECURITIES> 0
<RECEIVABLES> 10,373
<ALLOWANCES> 51
<INVENTORY> 8,309
<CURRENT-ASSETS> 19,634
<PP&E> 11,748
<DEPRECIATION> 3,716
<TOTAL-ASSETS> 29,147
<CURRENT-LIABILITIES> 8,281
<BONDS> 11,200
<COMMON> 15,024
0
0
<OTHER-SE> (5,866)
<TOTAL-LIABILITY-AND-EQUITY> 29,147
<SALES> 13,419
<TOTAL-REVENUES> 13,419
<CGS> 12,214
<TOTAL-COSTS> 12,214
<OTHER-EXPENSES> 2,208
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 172
<INCOME-PRETAX> (1,137)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,137)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,137)
<EPS-PRIMARY> (0.28)
<EPS-DILUTED> (0.28)
</TABLE>
