<PAGE> 1
FORM 10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1998
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 Number 0-23948
-----------------------
BOYD BROS. TRANSPORTATION INC.
- --------------------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 63-6006515
(State or other jurisdiction of (IRS Employer Identification
incorporation or organization) Number)
3275 Highway 30, Clayton, Alabama 36016
- --------------------------------------------------------------------------------
(Address of principal executive offices)
(Zip Code)
(334) 775-1400
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
Indicate by checkmark 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) Yes X No , 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 August 10, 1998.
Common Stock, $.001 Par Value 4,094,628
- ----------------------------- ---------
(Class) (Number of Shares)
<PAGE> 2
INDEX
<TABLE>
<CAPTION>
Page Number
-----------
<S> <C>
Part I. Financial Information
Item 1. Condensed Consolidated Financial Statements
Condensed Consolidated Balance Sheets
June 30, 1998 and December 31, 1997 3
Condensed Consolidated Statements of Income
Three- and six-month Periods Ended June 30, 1998 and 1997 5
Condensed Consolidated Statements of Cash Flows
Six-month Periods Ended June 30, 1998 and 1997 6
Notes to Condensed Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
Part II. Other Information
Item 4. Submission of Matters to a Vote of Security Holders 11
Item 5. Other Information 11
Item 6. Exhibits and Reports on Form 8-K 11
Signatures 13
</TABLE>
2
<PAGE> 3
BOYD BROS. TRANSPORTATION INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1998 1997
----------- -----------
(UNAUDITED)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 2,621,584 $ 3,417,174
Marketable securities -- 250,000
Accounts receivable
Trade and interline 11,284,022 9,415,737
Other 121,918 117,034
Current portion of net investment in sales-type lease 1,055,525 508,829
Inventories 376,378 263,352
Prepaid tire expense 281,631 904,381
Other prepaid expenses 1,892,990 1,387,587
Deferred income tax 549,776 174,587
----------- -----------
Total current assets 18,183,824 16,438,681
----------- -----------
PROPERTY AND EQUIPMENT:
Land and land improvements 1,159,570 1,046,245
Buildings 3,278,527 3,278,527
Revenue equipment 57,680,206 58,668,742
Other equipment 9,773,948 9,435,642
Leasehold improvements 339,944 339,944
----------- -----------
Total 72,232,195 72,769,100
Less accumulated depreciation and
amortization 27,644,953 23,910,352
----------- -----------
Property and equipment, net 44,587,242 48,858,748
----------- -----------
OTHER ASSETS
Net investment in sales-type lease 2,752,435 1,656,490
Goodwill 4,349,582 4,459,222
Deposits and other assets 178,237 112,861
----------- -----------
Total other assets 7,280,254 6,228,573
TOTAL $70,051,320 $71,526,002
=========== ===========
</TABLE>
See notes to condensed consolidated financial statements.
3
<PAGE> 4
BOYD BROS. TRANSPORTATION INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1998 1997
----------- -----------
(UNAUDITED)
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt $ 5,223,518 $ 5,914,785
Revolving line of credit -- 1,021,849
Accounts payable - trade and interline 2,017,561 1,517,218
Income taxes -- 230,327
Accrued liabilities:
Self-insurance claims 1,746,092 2,122,182
Salaries and wages 1,967,795 1,069,515
Other 1,240,523 778,148
----------- -----------
Total current liabilities 12,195,489 12,654,024
LONG-TERM DEBT 15,605,716 19,251,702
DEFERRED INCOME TAXES 11,133,918 10,165,682
----------- -----------
Total liabilities 38,935,123 42,071,408
----------- -----------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, $.001 par value - 1,000,000
shares authorized; no shares issued and
outstanding
Common stock, $.001 par value - 10,000,000
shares authorized; 4,094,628
shares issued and
outstanding 4,095 4,095
Additional paid-in capital 17,030,222 17,030,222
Retained earnings 14,081,880 12,420,277
----------- -----------
Total stockholders' equity 31,116,197 29,454,594
----------- -----------
TOTAL $70,051,320 $71,526,002
=========== ===========
</TABLE>
See notes to condensed consolidated financial statements.
4
<PAGE> 5
BOYD BROS. TRANSPORTATION INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
1998 1997 1998 1997
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
OPERATING REVENUES $ 30,370,365 $ 19,303,013 $ 58,258,720 $ 36,499,919
OPERATING EXPENSES:
Salaries, wages and
employee benefits 9,434,693 8,599,156 18,346,220 16,127,616
Cost of independent contractors 7,727,734 14,055 14,937,090 14,055
Fuel 2,756,322 2,870,959 5,420,855 5,603,368
Operating supplies 3,359,761 2,236,107 6,298,748 4,424,419
Taxes and licenses 741,698 598,374 1,293,526 1,064,944
Insurance and claims 1,147,895 841,917 2,499,784 1,705,623
Communications and utilities 368,076 306,626 797,878 613,413
Depreciation and amortization 2,435,142 2,340,852 4,893,021 4,512,947
(Gain) Loss on disposition of
property and equipment, net 7,380 (92,981) 7,380 (42,981)
Other 31,260 103,894 266,526 247,203
------------ ------------ ------------ ------------
Total operating expenses 28,009,961 17,818,959 54,761,028 34,270,607
------------ ------------ ------------ ------------
OPERATING INCOME 2,360,404 1,484,054 3,497,692 2,229,312
------------ ------------ ------------ ------------
OTHER INCOME (EXPENSES):
Interest income 15,887 28,217 43,717 47,997
Interest expense (414,300) (328,456) (800,742) (643,381)
Rental income 19,250 -- 19,250 --
------------ ------------ ------------ ------------
Other expenses, net (379,163) (300,239) (737,775) (595,384)
------------ ------------ ------------ ------------
INCOME BEFORE PROVISION FOR
INCOME TAXES 1,981,241 1,183,815 2,759,917 1,633,928
PROVISION FOR INCOME TAXES 778,269 510,840 1,098,269 690,865
------------ ------------ ------------ ------------
NET INCOME $ 1,202,972 $ 672,975 $ 1,661,648 $ 943,063
============ ============ ============ ============
NET INCOME PER SHARE
(Basic and Diluted) $ 0.29 $ 0.18 $ 0.41 $ 0.25
============ ============ ============ ============
WEIGHTED AVERAGE SHARES
OUTSTANDING 4,094,628 3,700,688 4,094,628 3,700,688
============ ============ ============ ============
</TABLE>
See notes to condensed consolidated financial statements.
5
<PAGE> 6
BOYD BROS. TRANSPORTATION INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30,
1998 1997
----------- -----------
(UNAUDITED)
<S> <C> <C>
OPERATING ACTIVITIES:
Net income $ 1,661,648 $ 943,063
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation expense 4,820,097 4,512,947
Amortization of goodwill 72,924 --
Provision for bad debt sales-type leases 666,919 --
(Gain) Loss on disposal of property and equipment, net (1,037,891) (42,981)
Provision for deferred income taxes 1,098,269 690,865
Changes in assets and liabilities provided (used) cash:
Marketable securities -- 100,000
Accounts receivable (1,851,513) (1,795,911)
Deferred income taxes (696,119) (727,867)
Deposits and other assets (884,899) (407,057)
Accounts payable-trade and interline 328,457 (1,033,241)
Accrued liabilities and other current liabilities 1,245,349 1,123,976
----------- -----------
Net cash provided by operating activities 5,423,241 3,363,794
----------- -----------
INVESTING ACTIVITIES:
Purchase of short-term investments 250,000 --
Payments received on lease payments 500,820 --
Capital expenditures-revenue equipment (2,155,888) (7,620,459)
Proceeds from disposals of property and equipment 544,475 1,682,033
----------- -----------
Net cash used in operating activities (860,593) (5,938,426)
----------- -----------
FINANCING ACTIVITIES:
Proceeds from long-term debt 2,684,820 8,285,130
Principal payments on long-term debt (8,043,058) (7,141,109)
----------- -----------
Net cash (used in) provided by financing
activities (5,358,238) 1,144,021
----------- -----------
NET (DECREASE) IN CASH AND CASH EQUIVALENTS (795,590) (1,430,611)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 3,417,174 3,593,206
----------- -----------
BALANCE AT END OF PERIOD $ 2,621,584 $ 2,162,595
=========== ===========
SUPPLEMENTAL NON-CASH INVESTING ACTIVITIES:
Net investment in sales-type leases 2,450,440 --
=========== ===========
</TABLE>
See notes to condensed consolidated financial statements.
6
<PAGE> 7
BOYD BROS. TRANSPORTATION INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
In the opinion of management of Boyd Bros. Transportation, Inc. and
Welborn Transport (The Company), the accompanying unaudited condensed
consolidated financial statements include all normal adjustments considered
necessary to present fairly the financial position as of June 30, 1998, the
results of operations for the three months and six months ended June 30, 1998
and 1997, and cash flows for the six months ended June 30, 1998 and 1997.
Interim results are not necessarily indicative of results for a full year.
The condensed consolidated financial statements and notes are presented
as permitted by Form 10-Q, and do not contain certain information included in
the Company's audited consolidated financial statements and notes for the fiscal
year ended December 31, 1997.
The condensed consolidated financial statements and notes should be
read in conjunction with the summary of accounting policies and notes to the
financial statements included in the Company's Form 10-K for the year ended
December 31, 1997.
2. FINANCIAL STATEMENTS
The condensed consolidated financial statements include the accounts of
Boyd Bros. Transportation, Inc. and its wholly owned subsidiary, Welborn
Transport. All significant intercompany balances, transactions and stockholdings
have been eliminated. FASB Statement No. 130, Reporting Comprehensive Income,
became effective for the Company's consolidated financial statements for the
quarter ended March 31, 1998. This statement had no impact on such financial
statements.
3. ENVIRONMENTAL MATTERS
The Company's operations are subject to certain federal, state and
local laws and regulations concerning the environment. Certain of the Company's
facilities are located in historically industrial areas and, therefore, there is
the possibility of environmental liability as a result of operations by prior
owners as well as the Company's use of fuels and underground storage tanks at
its regional service centers.
7
<PAGE> 8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
OVERVIEW
Boyd Bros. Transportation, Inc., headquartered in Clayton, Alabama is a
flatbed truckload carrier that operates primarily throughout the eastern
two-thirds of the United States, hauling primarily steel products and building
materials. In these markets, Boyd Bros. serves high-volume, time sensitive
shippers that demand time-definite delivery.
Historically, the Company has owned its revenue equipment and operated
through employee operators. The Company's expansion in the past, therefore, has
required significant capital expenditures which have been funded through secured
borrowings. During 1997, as a strategy to expand the Company's potential for
growth without the concomitant increase in capital expenditures typically
related to owned equipment, the Company began adding owner/operators to its
fleet. The Company then accelerated the implementation of this strategy in
December 1997 with the acquisition of Welborn Transport, Inc. which specializes
in short-haul routes using a largely owner/operator fleet.
RESULTS OF OPERATIONS
Operating revenues increased $11,067,352 or 57% for the three-month
period ended June 30, 1998 compared to the same period in 1997 due to increased
demand for the Company's services and higher rates. Revenues attributable to
Welborn Transport accounted for three-fourths of the overall increase in
operating revenues; Welborn Transport was not part of the Company until December
1997. Additionally, revenue per truck increased due to better utilization and
reduced deadhead. Operating revenues increased $21,758,801 or 60% for the
six-month period ended June 30, 1998 compared to the same period in 1997. The
increase is due to the Welborn Transport acquisition and also greater demand for
the Company's services. Additionally, revenue per truck increased due to better
utilization and reduced deadhead.
Total operating expenses increased $10,299,421 or 62% during the
three-month period ended June 30, 1998 compared to the three months ended June
30, 1997. The operating ratio for the second quarter of 1998 was 92.2% compared
to 92.3% for the same period in 1997.
Salaries, wages and benefits increased $835,537 or 9.7% compared to the
second quarter of 1997 from $8,599,156 to $9,434,693. The increase was at a
slower rate than revenues due to Welborn Transport's fleet being predominantly
owner/operator. Fuel costs decreased $114,637 or 4.0% compared to the second
quarter of 1997 from $2,870,959 to $2,756,322. Decreasing fuel cost per gallon,
the increase in owner/operator units, and an increase in fuel efficiency
accounted for the decrease in fuel cost for the second quarter of 1998.
Operating supplies increased $1,123,654 or 50.3% compared to the second quarter
of 1997 from $2,236,107 to $3,359,761. As a percentage of operating revenues,
operating supplies decreased from 11.6% to 11.1% due to the increase of the
owner/operator fleet. Taxes and licenses increased $143,324 or 24.0% compared to
the second quarter of 1997 from $598,374 to $741,698. As a percentage of
operating revenues, taxes and licenses decreased from 3.1% to 2.4% due to the
increase in the owner/operator fleet. Insurance and claims increased $305,978 or
36.3% compared to the second quarter of 1997 from $841,917 to $1,147,895.
Insurance and claims as a percentage of operating revenues decreased from 4.4%
to 3.8%. Communication and utilities increased $61,450 or 20% compared to the
second quarter of 1997 from $306,626 to $368,076. As a percentage of operating
revenues, communication and utilities decreased from 1.6% to 1.2% due to the
increase in the owner/operator fleet. Depreciation and amortization expense
increased $94,290 or 4.0% compared to the second quarter of 1997 from $2,340,852
to $2,435,142. As a percentage of operating revenues, depreciation and
amortization decreased from 12.1% to 8.0% due to the increase in the
owner/operator fleet and an increase in the sales-type lease transactions. The
gain on disposition of property and equipment, net was $7,380 compared with a
loss of $93,981 in the second quarter of 1997 due to an increase in sales-type
leases (related to the sale of equipment to owner/operators). Cost of
independent contractors was $7,727,734 for the three months ended June 30, 1998
compared to $14,055 for the same three months ended June 30, 1997. The Company
had no owner operators until June 1997. Cost of independent contractors
represents net payments made to the owner/operators after certain operating
expenses are deducted, and the cost of independent contractors is offset by any
gain on the sale of assets related to sales-type transactions as well as
interest income and bad debt expense.
8
<PAGE> 9
RESULTS OF OPERATIONS (CONTINUED)
Interest expenses increased $85,844 or 26.1% compared to the second
quarter of 1997 from $328,456 to $414,300. As a percentage of operating
revenues, interest expense decreased from 1.7% to 1.4% due to the increase in
the owner/operator fleet and reduced debt.
Total operating expenses for the year-to-date period ended June 30,
1998 increased $20,490,467 or 60% compared to the same period last year. The
operating ratio year to date June 30, 1998 was 94.0% compared to 93.9% for the
same period last year. The increase was due to the acquisition of Welborn
Transport on December 8, 1997 and also the introduction of the owner/operator
fleet at Boyd Bros. in June 1997. Currently there are 400 owner/operators under
contract with Boyd Bros. Transportation. Salaries and wages increased $2,218,604
or 13.8% during the six-month period ended June 30, 1998 compared to the same
period last year due to increased staffing and wage increases. Operating
supplies increased $1,874,329 or 42.4% during the six-month period ended June
30, 1998 compared to the same period last year due to an increase in
over-the-road maintenance and tire costs. However, operating supplies cost
decreased as a percentage of revenue from 12.1% to 10.8%. Fuel costs decreased
6.1% for the six-month period ended June 30,1998 due to lower cost per gallon
and improved fleet fuel efficiency.
LIQUIDITY AND CAPITAL RESOURCES
The Company's primary cash requirements are for capital expenditures
and operating expenses, including labor costs, fuel costs and operating
supplies. Historically, the Company's primary sources of cash have been from
operations, bank borrowings and issuance of common stock of the Company.
Accounts receivable at June 30, 1998 increased 19.8% or $1,868,285.
This represents 16.10% of total assets at June 30, 1998 versus 13.2% of total
assets at December 31, 1997. The increase is due to the increase in sales volume
and does not represent a change in uncollectible accounts. The days of revenue
in accounts receivable for the period ended June 30, 1998 were 30.1 compared to
29.8 for the same period in 1997. The Company has not recognized any significant
bad debt expense in any of the periods represented relating to trade
receivables. The Company does reserve for bad debts that are related to the
sales-type leases, which were started in June 1997. The provision for such
reserves on sales-type type leases for the quarter ended June 30, 1998 was
$549,000 compared to $0 for the same period in 1997.
Net cash flow provided by operating activities was $5,423,241 during
the first six months of 1998 compared to $3,363,794 during the same period for
1997. The Company had a working capital surplus of $5,988,335 at June 30, 1998.
The Company's bank debt bears interest ranging from LIBOR plus 1.25%
and 7.16% to 7.35% per annum, all payable in monthly installments with
maturities through October 2003. The bank debt is collateralized by revenue
equipment. The Company also has two lines of credit with limits of $1,750,000
and $1,500,000 bearing interest at the bank's 30 day LIBOR rate plus 1.25% and
the prime rate less .125%, respectively. There were no amounts borrowed under
these lines of credit as of June 30, 1998.
Management anticipates increasing the Company's fleet in 1998 by an
aggregate of 75 tractors and 150 trailers net of replacements, at an anticipated
cost of approximately $12,000,000. Management expects to continue financing such
equipment purchases through equipment financing arrangements with various
lenders.
As of June 30,1998 the Company believes that the availability of credit
under both lines of credit and internally generated cash will be adequate to
finance its operations and anticipated capital expenditures through 1998.
YEAR 2000 COMPLIANCE
The inability of computers, software and other equipment utilizing
microprocessors to recognize and properly process data fields containing a
two-digit year is commonly referred to as the year 2000 compliance issue. As the
year 2000 approaches, such systems may be unable to accurately process certain
date-based information.
In 1997, the Company completed a conversion and modification from
existing systems and software to programs that are year 2000 compliant. As of
June 30, 1998, management has determined that the conversion and testing of all
significant systems is complete. All internal and external costs associated with
the Company's year 2000 compliance activities were expensed as incurred. These
costs were not material to the Company's consolidated financial statements.
9
<PAGE> 10
YEAR 2000 COMPLIANCE (CONTINUED)
The Company has plans to communicate with significant customers,
vendors and other third parties with which it does significant business to
determine their year 2000 compliance readiness. However, there can be no
guarantee that the systems of other entities will be timely converted, or that
their failure to convert, or a conversion that is incompatible with the
Company's systems, will not have an adverse effect on the Company.
10
<PAGE> 11
PART II. OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
On May 19, 1998, the Company held its 1998 annual meeting of stockholders. A
total of 3,728,435 shares, or 91.1% of the Company's outstanding shares, were
represented at the meeting either in person or by proxy.
Three directors were nominated by the Company's Board of Directors to serve new
three-year terms expiring in 2001. These nominees, and the voting results for
each, are listed below:
<TABLE>
<CAPTION>
Term Expires For Withheld
------------ --- --------
<S> <C> <C> <C>
Dempsey Boyd 2001 3,726,135 2,300
Boyd Whigham 2001 3,726,435 2,000
Miller Welborn 2001 3,726,435 2,000
</TABLE>
Incumbent directors not standing for election at the 1998 annual meeting of
stockholders and whose terms continued after the meeting were:
<TABLE>
<CAPTION>
Term Expires
------------
<S> <C>
Richard C. Bailey 1999
Paul G. Taylor 1999
Stephen J. Silverman 1999
Donald G. Johnston 2000
Glyn E. Newton 2000
Wyatt Shorter 2000
</TABLE>
Also at the annual meeting, stockholders considered and voted on two additional
items of business:
Stockholders ratified an amendment to the Company's 1994 Stock Option Plan,
increasing the maximum number of shares that may be issued and sold under the
plan. A total of 3,461,085 shares were voted in favor of this proposal, 264,900
shares were voted against, and 2,450 shares abstained.
Stockholders ratified the appointment of Deloitte & Touche LLP as the Company's
independent auditors for the year ending December 31, 1998. A total of 3,695,125
shares were voted in favor of this proposal, 32,310 shares were voted against,
and 1,000 shares abstained.
ITEM 5. OTHER INFORMATION
On July 17, 1998, Donald G. Johnston resigned as President and Chief Executive
Officer of the Company. Mr. Johnston also resigned his position as a director of
the Company, and with his resignation, the board of directors determined that
the size of the board would be reduced to eight members. Miller Welborn was
elected Acting President and Chief Executive Officer of the Company.
Proposals by stockholders intended to be presented at the 1999 annual meeting
must be forwarded in writing and received at the principal executive office of
the Company no later than December 11, 1998, directed to the attention of the
Secretary, for consideration for inclusion in the Company's proxy statement for
the annual meeting of stockholders to be held in 1999. Moreover, with regard to
any proposal by a stockholder not seeking to have such proposal included in the
proxy statement but seeking to have such proposal considered at the 1999 annual
meeting, if such stockholder fails to notify the Company in the manner set forth
above of such proposal no later than February 24, 1999, then the persons
appointed as proxies may exercise their discretionary voting authority if the
proposal is considered at the 1999 annual meeting notwithstanding that
stockholders have not been advised of the proposal in the proxy statement for
the 1999 annual meeting. Any proposals submitted by stockholders must comply in
all respects with the rules and regulations of the Securities and Exchange
Commission and the provisions of the Company's Bylaws and of Delaware law.
11
<PAGE> 12
PART II. OTHER INFORMATION (CONTINUED)
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27 Financial data schedule.
(b) Reports on Form 8-K
No reports on Form 8-K were filed by the Registrant during the quarter
ended June 30, 1998.
12
<PAGE> 13
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 duly authorized.
Boyd Bros. Transportation Inc.
(Registrant)
Date: August 10, 1998 /s/ Richard C. Bailey
------------------------------------------
Richard C. Bailey, Chief Financial Officer
(Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 2,621,584
<SECURITIES> 0
<RECEIVABLES> 15,213,900
<ALLOWANCES> 0
<INVENTORY> 376,378
<CURRENT-ASSETS> 18,183,824
<PP&E> 72,232,195
<DEPRECIATION> 27,644,953
<TOTAL-ASSETS> 70,051,320
<CURRENT-LIABILITIES> 12,195,489
<BONDS> 0
0
0
<COMMON> 4,095
<OTHER-SE> 31,112,102
<TOTAL-LIABILITY-AND-EQUITY> 70,051,320
<SALES> 0
<TOTAL-REVENUES> 58,258,720
<CGS> 0
<TOTAL-COSTS> 54,761,028
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 737,775
<INCOME-PRETAX> 2,759,917
<INCOME-TAX> 1,098,269
<INCOME-CONTINUING> 1,661,648
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,661,648
<EPS-PRIMARY> .41
<EPS-DILUTED> .41
</TABLE>
