<PAGE>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1997
Commission File Number: 0-27968
METEOR INDUSTRIES, INC.
--------------------------------------------------
(Exact Name of Issuer as Specified in its Charter)
COLORADO 84-1236619
- ------------------------------- ---------------------------------
(State or Other Jurisdiction of (I.R.S. Employer Identification
Incorporation or Organization) Number)
216 SIXTEENTH STREET, SUITE 730
DENVER, COLORADO 80202
----------------------------------------
(Address of Principal Executive Offices)
(303) 572-1137
-------------------------------
(Registrant's Telephone Number,
Including Area Code)
Check whether the Issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the Issuer was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days.
Yes X No___
There were 4,130,228 shares of the Registrant's $.001 par value common stock
outstanding as of September 30, 1997.
<PAGE>
METEOR INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEET
September 30, December 31,
1997 1996
ASSETS (Unaudited)
Current assets
Cash and cash equivalents $ 304,954 $ 151,992
Restricted Cash 1,420,768 928,355
Accounts receivable-trade, net
of allowance 10,724,898 5,134,276
Accounts receivable, related party 63,611 109,149
Notes receivable 78,756 736,045
Inventory 3,743,196 1,221,729
Other current assets 46,692 206,401
Total current assets 16,382,875 8,487,947
Property, plant and equipment, net 13,786,418 8,277,368
Other assets
Notes receivable, related party 1,044,501 1,598,430
Investments in closely held businesses 1,197,341 1,285,407
Other assets 592,832 784,579
Total other assets 2,834,674 3,668,416
TOTAL ASSETS $33,003,967 $20,433,731
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable, trade $ 5,896,711 $ 3,512,257
Bank overdraft -- 170,308
Current portion, long-term debt 2,466,052 2,176,357
Accrued expenses 1,208,430 212,940
Taxes payable 1,389,046 730,034
Revolving credit facility 4,180,509 2,141,027
Total current liabilities 15,140,748 8,942,923
Long-term debt 1,876,707 445,774
Deferred tax liability 2,275,509 1,773,240
Minority interest in subsidiary 4,526,741 4,151,903
Total liabilities 23,819,705 15,313,840
Shareholders' equity
Common stock, $.001 par value; authorized
10,000,000 shares, 4,130,228 and 3,310,138
shares issued and outstanding,
respectively 4,130 3,310
Paid-in capital 6,352,399 2,660,973
Retained earnings 2,827,733 2,455,608
Total shareholders' equity 9,184,262 5,119,891
Total liabilities and share-
holders' equity $33,003,967 $20,433,731
The accompanying notes are an integral part of the financial statements.
-2-
<PAGE>
METEOR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended September 30, 1997 and 1996
(Unaudited)
September 30, September 30,
1997 1996
Net sales $27,280,844 $16,152,325
Cost of sales 23,452,139 13,474,885
Gross profit 3,828,705 2,677,440
Selling, general and adminis-
trative expenses 3,106,910 2,043,903
Depreciation 336,862 209,937
Total expenses 3,443,772 2,253,840
Income from operations 384,933 423,600
Other income and (expense)
Interest income 158,276 94,256
Interest expense (138,627) (126,337)
Other income (16,483) --
Gain (loss) on sale of assets 27,625 (2,500)
Total other (expenses) income 30,791 (34,581)
Income before income taxes
and minority interest 415,724 389,019
Provision for income taxes 162,132 151,718
Income before minority interest 253,592 237,301
Minority interest 98,255 95,316
Net income $ 155,337 $ 141,985
Net income per common share $ .04 $ .04
The accompanying notes are an integral part of the financial statements.
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<PAGE>
METEOR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Nine Months Ended September 30, 1997 and 1996
(Unaudited)
September 30, September 30,
1997 1996
Net sales $55,441,108 $45,530,883
Cost of sales 47,058,161 37,735,245
Gross profit 8,382,947 7,795,638
Selling, general and adminis-
trative expenses 7,108,197 6,042,709
Depreciation 775,893 643,515
Total expenses 7,884,090 6,686,224
Income from operations 498,857 1,109,414
Other income and (expense)
Interest income 389,008 281,170
Interest expense (341,254) (376,290)
Other Income 480,807 --
Gain (loss) on sale of assets 72,975 28,605
Total other (expense) income 601,536 (66,515)
Income before income taxes
and minority interest 1,100,393 1,042,899
Provision for income taxes 429,153 406,731
Income before minority interest 671,240 636,168
Minority interest 299,115 285,948
Net income $ 372,125 $ 350,220
Net income per common share $ .10 $ .11
The accompanying notes are an integral part of the financial statements.
-4-
<PAGE>
METEOR INDUSTRIES, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Nine Months Ended September 30, 1997 and 1996
(Unaudited)
September 30, September 30,
1997 1996
Cash flows from operating activities
Net income $ 372,125 $ 350,220
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 775,893 643,515
Gain (loss) on disposal of property
& equipment (72,975) (28,605)
Deferred income taxes 540,784 (70,935)
Minority interest 299,115 285,948
(Increase) decrease in accounts receivable 806,894 (1,011,922)
(Increase) in inventories (288,420) 20,739
(Increase) decrease in other current assets 132,956 28,302
Increase in accounts payable (2,577,945) 449,230
Increase (decrease) in accrued liabilities 553,179 58,407
Increase (decrease) in taxes payable 536,834 541,498
(Increase) in other assets 147,345 (257,618)
Net cash provided by operating activities 1,225,785 1,008,779
Cash flows from investing activities
Acquisition of Fleischli, net of cash acquired (3,960,792) --
Proceeds from sale of property 364,962 --
Purchases of property, equipment and
investments (2,626,746) (918,813)
Investment in closely held business 88,066 --
Payments on notes receivable 1,273,575 24,892
Net cash used by investing activities (4,860,935) (893,921)
Cash flows from financing activities
Payments on revolving credit facilities (60,518) (420,149)
Decrease in bank overdraft (170,308) (71,657)
Payments on long-term debt (878,024) (299,440)
Borrowings 847,129 523,255
Restricted cash 357,587 (242,007)
Sale of stock 3,692,246 706,995
Net cash provided by financing activities 3,788,112 196,997
Net increase in cash and equivalents 152,962 311,855
Cash and equivalents, beginning of period 151,992 95,150
Cash and equivalents, end of period $ 304,954 $ 407,005
The accompanying notes are an integral part of the financial statements.
-5-
<PAGE>
METEOR INDUSTRIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
(Unaudited)
NOTE 1 -- BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Meteor Industries, Inc.("Meteor" or "Company") was incorporated on December
22, 1992, as a Colorado based holding company. Graves Oil & Butane Co., Inc.
("Graves"), which was acquired effective September 1, 1993, is a wholesale and
retail distributor of petroleum products primarily in northern New Mexico,
Colorado, Arizona and Utah. Graves also operates retail gasoline and
convenience stores in northern New Mexico and Colorado. El Boracho, Inc.,
which was acquired September 1, 1993, holds a liquor license for use by an
Albuquerque, New Mexico convenience store. Hillger Oil Company ("Hillger"),
which was acquired effective April 1, 1995, is a wholesale and retail
distributor of petroleum products primarily in southern New Mexico and
Arizona. In addition, Hillger operates and owns through a subsidiary, Hatch
Pyramid LLC, retail gasoline and convenience stores in southern New Mexico.
Capco Resources, Inc. ("CRI"), is a holding Company involved in the
development of a power project in Pakistan. The acquisition of CRI was
accounted for as a reverse acquisition with CRI treated as the acquirer. In
1996 the Company transferred its ownership of CRI to Meteor Holdings LLC
("MHL"). Innovative Solutions and Technologies, Inc. ("IST") is involved in
providing environmental consulting. Fleischli Oil Company, Inc. ("Fleischli")
which was acquired effective August 1, 1997, is a wholesale distributor of
petroleum products primarily in Wyoming, Colorado and Nevada.
PRINCIPLES OF CONSOLIDATION AND ORGANIZATION - The consolidated financial
statements include the accounts of Meteor Industries, Inc., and its wholly
owned subsidiaries, Graves, including its wholly owned subsidiary, El Boracho,
Inc., Hillger including its 75% owned subsidiary Hatch Pyramid LLC, Fleischli,
IST and Meteor's 73% owned subsidiary, Meteor Holdings LLC. All significant
intercompany transactions and balances have been eliminated in consolidation.
These unaudited financial statements have been prepared in accordance with
generally accepted accounting principles for interim financial information.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of management, such interim statements reflect all adjustments
(consisting of normal recurring accruals) necessary to present fairly the
financial position and the results of operations and cash flows for the
interim periods presented. The results of operations for these interim
periods are not necessarily indicative of the results to be expected for the
full year. These financial statements should be read in conjunction with the
audited consolidated financial statements and footnotes for the year ended
December 31, 1996, filed with the Company's Form 10-K.
Earnings per common and common equivalent share are computed by dividing the
net income by the weighted average number of common shares. The number of
shares used in the earnings per share computation for the three and nine
months ended September 30, 1997, is 4,130,228 and 3,718,006, respectively; and
for the three and nine months ended September 30, 1996, is 3,294,903 and
3,114,903, respectively.
-6-
<PAGE>
NOTE 2 - NEW ACCOUNTING PRONOUNCEMENTS
In February, 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 128, "Earnings per Share" ("SFAS No.
128"). The standard requires presentation of earnings per share on a "basic"
(only actual shares outstanding) and "fully diluted" (actual shares
outstanding plus the effect of other dilutive securities) basis. At this
time, the Company does not expect the adoption of SFAS No. 128 to have a
material impact on the Company's earnings per share.
NOTE 3 - ACQUISITIONS AND PRO FORMA FINANCIAL INFORMATION
The following unaudited pro forma combined statements of earnings for the nine
months ended September 30, 1997 and 1996 combine the historical financial
information for the Company and Fleischli assuming the acquisition was
consummated at the beginning of the periods presented. The pro forma
statements include the results of operations of the Company and the
acquisition, along with adjustments which give effect to events that are
directly attributable to the transactions and which are expected to have a
continuing impact.
This unaudited pro forma financial information does not purport to represent
the results of operations that actually would have resulted had the purchase
occurred on the date specified, nor should it be taken as indicative of the
future results of operations.
-7-
<PAGE>
Meteor Industries, Inc.
Pro Forma Consolidated Statement of Operations
For the Nine Months Ended September 30, 1997 and 1996
(Unaudited)
1997 1996
REVENUES
Sales $102,895,686 $111,552,283
Cost of sales 88,844,169 96,812,353
Gross profit 14,051,517 14,739,930
EXPENSES
Selling, general and administrative 11,755,935 11,623,920
Depreciation 1,160,957 1,163,275
Total expenses 12,916,892 12,787,195
Income from operations 1,134,625 1,952,735
OTHER INCOME AND (EXPENSES)
Interest income 389,448 281,170
Interest expense (582,341) (646,086)
Other 484,332 --
Gain on sale of assets 73,605 51,493
Total other income 365,044 (313,423)
Income before income taxes and
minority interest 1,499,669 1,639,312
Provision for income taxes 584,871 639,332
Income before minority interest 914,798 999,980
Minority interest 299,115 285,948
Net income $ 615,683 $ 714,032
Net income per common share $ .17 $ .23
Weighted average shares 3,718,006 3,114,903
-8-
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS FOR METEOR INDUSTRIES, INC.
This Report contains forward-looking statements within the meaning of the
"safe harbor" provisions of the Private Securities Litigation Reform Act of
1995. Such statements are based on management's current expectations and are
subject to a number of factors and uncertainties which could cause actual
results to differ materially from those described in the forward-looking
statements.
LIQUIDITY AND CAPITAL RESOURCES
Net cash provided by operating activities totaled $1,225,785 for the nine
months ended September 30, 1997 compared to $1,008,779 for the period ended
September 30, 1996. The increase in cash provided is primarily related to the
collections of accounts receivable.
As of September 30, 1997, the Company had working capital of $1,242,127
compared to a working capital deficit of $(454,976) at December 31, 1996. The
increase in the working capital is due primarily to sale of stock and partial
collection of a loan to a related party.
Net cash used by investing activities totaled $4,860,935 for the nine months
ended September 30, 1997, compared to cash used of $893,921 for the period
ended September 30, 1996. The increase is primarily a result of the
acquisition of Fleischli and purchase of property and equipment which is
offset by partial collection of a loan to related party.
Because of the Company's continued expansion and development efforts, the
Company's liquidity requirements have increased and are expected to continue
to increase as a result of the need to reduce the Company's existing debt
related to prior acquisitions. During the year the Company raised $3,692,246
in net proceeds from the sale of common stock and warrants.
Net cash provided by financing activities totaled $3,788,112 for the nine
months ended September 30, 1997 compared to $196,997 for the period ended
September 30, 1996. The increase in cash provided is primarily related to
sale of stock, which is offset by payments of notes payable and revolving line
of credit.
The Company has three revolving bank credit facilities with Norwest Business
Credit, Inc. - one for $5 million, a second one for $3 million, and a third
one for $1.5 million. The credit lines are subject to the borrowing base of
the Company's subsidiaries, as defined and on September 30, 1997, $4,180,509
was borrowed against the facilities. The Company has been in default on
timely filing of information with the lender. The Company was also in default
of the net worth requirements for one of the subsidiaries, which default has
been corrected. The lender waived these defaults. The Company is and will
continue to be in default in timely filing of information and it is expected
that the lender will continue to waive the timely filing violations.
The Company has a term loan with a New Mexico bank which is due in January,
1998 and a term loan with Norwest Business Credit, Inc. which is due in June,
1998. The balances at September 30, 1997, were $70,017 and $93,741,
respectively. The loans are collateralized by real estate and buildings and
equipment and require approximately $29,000 per month in payments.
-9-
<PAGE>
At September 30, 1997, the Company owned 50% of a limited liability company
which in June, 1996, acquired a convenience store for $610,000 using financing
through Phillips Performance Fund. The balance of the loan at September 30,
1997 was $476,761. The Company is a co-signer on this loan which has a term of
10 years. The Company records its investment using the equity method, which
reflects only the Company's share of the net worth of the LLC.
The Company owns 75% of a limited liability company which in December, 1996,
acquired a convenience store for $415,000 using seller financing. The loan
has quarterly payments of $14,000 and a term of 7 years. The balance of the
loan at September 30, 1997, was $288,409.
The Company owns 100% of a limited liability company which in July, 1997
acquired a convenience store using Phillips Performance Fund financing. The
balance on the loan at September 30, 1997, was $659,696.
The Company owns 100% of a limited liability company which in September, 1997
acquired a convenience store using seller financing of $180,000. The loan has
monthly payments of $1,773 for a term of 10 years.
A subsidiary of the Company has preferred stock outstanding which requires no
periodic payments but accrues an 8% dividend and must be redeemed for
$3,543,000 plus accrued dividends at the holder's request any time after
September 15, 2000 unless earlier converted into common stock pursuant to its
terms. This preferred stock is treated as a minority interest on the balance
sheet and recorded at its discounted value.
At September 30, 1997, the Company owed the founder of one of its subsidiaries
$1,645,075 payable due October 1, 1997. $670,000 of the amount owed was
offset by payments on notes receivable from the founder also due October 1,
1997. The Company paid this debt by drawing down its line of credit.
The Company is obligated to pay lease costs of approximately $102,000 monthly
for land, building, facilities, and equipment.
In order to pay its subsidiary preferred stock and other obligations, the
interest and dividends on such obligations and other expenses, the Company
must generate cash flow from operations which exceeds that which has been
achieved in the past. In addition, even if historical cash flow is exceeded
throughout the terms of its obligations, the Company will probably be required
to raise capital or refinance its existing debt in order to pay its
obligations as they become due. During the second quarter the Company sold
690,000 shares of stock.
The Company utilizes underground tanks at various locations to store petroleum
products and is therefore subject to various federal and state statutes
concerning environmental protection, as well as the New Mexico Ground Water
Protection Act and the Wyoming Water Pollution from Underground Storage Tank
Corrective Action Act of 1990. The various federal and state statutes are
designed to identify environmental damage, identify hazardous material and/or
operations, regulate operations engaged in hazardous activities, and establish
procedures for remedial action as necessary.
The states of New Mexico and Wyoming have recognized the potential cleanup
costs resulting from regulations, and have established corrective action
accounts. The purpose of the accounts is to provide monetary assistance in
both assessing site
-10-
<PAGE>
damage and correcting the damage where such costs are in excess of certain
limits. Assistance is not available to repair or replace underground tanks or
equipment. The laws specify requirements which must have been met for an
applicant to be eligible, including a provision that payments will be made in
accordance with regulations and states that payment from the accounts are
limited to amounts in those accounts. The Company is responsible for any
contamination of land it owns or leases; however, the Company's
responsibilities may be limited as a result of possible claims for
reimbursement from third parties. The Company has accrued for site assessment
and related clean up costs approximately $315,000.
The Company maintains detailed inventory records and performs tank and line
tightness tests on a regular basis on all underground storage tanks.
Management has assessed the environmental contingencies and does not
anticipate any potential liabilities that will have a material adverse effect
on the consolidated financial position, results of operation, or liquidity of
the Company.
RESULTS OF OPERATIONS
COMPARISON OF THE THREE MONTHS ENDED SEPTEMBER 30, 1997 TO SEPTEMBER 30, 1996
The Company is primarily engaged in the business of marketing and distributing
refined petroleum and related products through its commercial operations,
convenience store operations and environmental services.
The Company's sales for the three months ended September 30, 1997, increased
$11,128,519 or 69% to $27,280,844 from $16,152,325 for the comparable 1996
period. The increase is primarily related to acquisitions and offset by
decreases in fuel prices at its convenience stores and in commercial sales to
certain customers. Management has discontinued some commercial sales which had
low margins and high operating costs.
The Company's cost of sales for the three months ended September 30, 1997,
increased $9,977,254 or 74% to $23,452,139 (86% of sales) from $13,474,885(83%
of sales) for the comparable 1996 period. The increase is primarily related
to acquisitions and offset by decreases in fuel costs and decreased commercial
sales to certain customers.
The Company's gross profit for the three months ended September 30, 1997,
increased $1,151,265 to $3,828,705 from $2,677,440 for the comparable 1996
period. The increase is primarily related to acquisitions and offset by a
decrease in sales volumes to certain customers and a decrease in gasoline
margins. Gasoline margins are dictated by competition in a given area and the
Company has limited control over such margins. The company also had
approximately $100,000 in profit from its investment in CRI in 1996 and none
in 1997.
The Company's selling, general and administrative expenses for three months
ended September 30, 1997, increased $1,063,007 or 52% to $3,106,910 from
$2,043,903 for the comparable 1996 period. The increase is primarily due to
acquisitions and offset by reduced expenses at the subsidiary levels, however
such savings have been offset by an increase in corporate overhead. The
Company's corporate overhead has increased due to acquisition activity and
capital raising activities.
-11-
<PAGE>
The Company's depreciation and amortization for the three months ended
September 30, 1997, increased $126,925 or 60% to $336,862 from $209,937 for
the comparable 1996 period. The increase is primarily related to acquisitions.
The Company's other income for the three months ended September 30, 1997,
increased $65,372 to $30,791 from $(34,581) for the comparable 1996 period.
The increase is primarily related to an increase in interest income due to
increased slow paying accounts receivable and gain on sale of assets.
The Company's provision for income taxes for the three months ended September
30, 1997, was computed using an effective tax rates of 39%.
COMPARISON OF THE NINE MONTHS ENDED SEPTEMBER 30, 1997 TO SEPTEMBER 30, 1996
The Company's sales for the nine months ended September 30, 1997, increased
$9,910,225 to $55,441,108 from $45,530,883 for the comparable 1996 period.
The increase in revenues is primarily due to acquisitions offset by decreases
in volumes sold to certain customers and the prices its charges for its
products.
The Company's cost of sales for the nine months ended September 30, 1997,
increased $9,322,916 to $47,058,161 from $37,735,245 for the comparable 1996
period. The increase in costs of sales is due to acquisitions and offset by a
decrease in sales to certain customers.
The Company's gross profit for the nine months ended September 30, 1997,
increased by $587,309 to $8,382,947 from $7,795,638 for the comparable 1996
period. The increase in gross profits is primarily related to acquisitions
offset by lower sales and decreased margins for gasoline at the retail level.
Retail gasoline margins are dictated by competition in a given area and the
Company has no control over such margins. The Company also had approximately
$208,000 in profit from its investment in CRI in 1996 and none in 1997.
The Company's selling, general and administrative expenses were for the nine
months ended September 30, 1997, increased $1,065,488 to $7,108,197 from
$6,042,709 for the comparable 1996 period. The increase in expenses is
primarily related to acquisitions and offset by combining the operations of
Hillger, Graves and Fleischli and realizing the benefits of overhead
reduction and reduction of certain operating costs.
The Company's depreciation for the nine months ended September 30, 1997,
increased $132,378 to $775,893 from $643,515 for the comparable 1996 period.
The increase in depreciation expense is due primarily to acquisitions and
property acquisitions.
The Company's other income for the nine months ended September 30, 1997,
increased $668,051 to $601,536 compared to $(66,515) for the comparable 1996
period. The increase is primarily related to acquisitions; an increase in
interest income of $107,838 related to the notes and slow paying accounts
receivable; a reduction in interest expense of $35,036 due to a reduction in
long term debt, and an increase of $480,807 due to settlement of an insurance
claim.
The Company's provision for income taxes for the three months ended September
30, 1997, was computed using an effective tax rates of 39%.
-12-
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings. None.
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) Exhibit 27 Financial Data Schedule Filed herewith
electronically
(b) Reports on Form 8-K.
The Company filed a Current Report on Form 8-K dated August 25,
1997, and two amendments thereto on October 16, 1997 and October 27, 1997,
with respect to the Company's acquisition of Fleischli Oil Company.
-13-
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the Issuer caused
this Report to be signed on its behalf by the undersigned, thereunto duly
authorized.
METEOR INDUSTRIES, INC.
By: /signed/ Dennis R. Staal
Dennis R. Staal, Treasurer(Chief
Financial and Accounting Officer)
Dated: November 14, 1997
-14-
<PAGE>
EXHIBIT INDEX
EXHIBIT METHOD OF FILING
- ------- -----------------------------
27. FINANCIAL DATA SCHEDULE Filed herewith electronically
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
consolidated balance sheets and consolidated statements of operations found on
pages 3, 4 and 5 of the Company's Form 10-Q for the year to date, and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1997
<CASH> 1,725,722
<SECURITIES> 0
<RECEIVABLES> 10,867,265
<ALLOWANCES> 0
<INVENTORY> 3,743,196
<CURRENT-ASSETS> 46,692
<PP&E> 20,029,493
<DEPRECIATION> (6,243,075)
<TOTAL-ASSETS> 33,003,967
<CURRENT-LIABILITIES> 15,140,748
<BONDS> 0
<COMMON> 4,130
0
0
<OTHER-SE> 9,180,132
<TOTAL-LIABILITY-AND-EQUITY> 33,003,967
<SALES> 55,441,108
<TOTAL-REVENUES> 55,441,108
<CGS> 47,058,161
<TOTAL-COSTS> 7,884,090
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 341,254
<INCOME-PRETAX> 1,100,393
<INCOME-TAX> 429,153
<INCOME-CONTINUING> 671,240
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 372,125
<EPS-PRIMARY> .10
<EPS-DILUTED> .10
</TABLE>
