<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934.
For the quarterly period ended March 29, 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 1-14260
WACKENHUT CORRECTIONS CORPORATION
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Florida 65-0043078
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
4200 Wackenhut Drive #100, Palm Beach Gardens, Florida 33410-4243
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
(561) 622-5656
- --------------------------------------------------------------------------------
(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 twelve (12) months (or for such shorter period that the registrant
was required to file such report), and (2) has been subject to such filing
requirements for the past 90 days.
Yes [X] No [ ]
At April 22, 1998, 22,230,497 shares of the registrant's Common Stock were
issued and outstanding.
<PAGE> 2
WACKENHUT CORRECTIONS CORPORATION
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The following consolidated financial statements of Wackenhut Corrections
Corporation, a Florida corporation (the "Company") have been prepared in
accordance with the instructions to Form 10-Q and therefore, omit or condense
certain footnotes and other information normally included in financial
statements prepared in accordance with generally accepted accounting principles.
In the opinion of management, all adjustments (consisting only of normal
recurring accruals) necessary for a fair presentation of the financial
information for the interim periods reported have been made. Results of
operations for the thirteen weeks ended March 29, 1998 are not necessarily
indicative of the results for the entire fiscal year ending January 3, 1999.
Page 2 of 13
<PAGE> 3
WACKENHUT CORRECTIONS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THIRTEEN WEEKS ENDED
MARCH 29, 1998 AND MARCH 30, 1997
(IN THOUSANDS EXCEPT PER SHARE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
THIRTEEN WEEKS ENDED
---------------------------------
MARCH 29, 1998 MARCH 30, 1997
-------------- --------------
<S> <C> <C>
Revenues $71,269 $41,227
Operating expenses (including amounts related
to Parent of $1,989 and $1,565) 59,258 34,400
Depreciation and amortization 2,667 1,148
------- -------
Contribution from operations 9,344 5,679
G&A expense (including amounts related to
The Wackenhut Corp. of $542 and $385) 3,788 2,407
------- -------
Operating income 5,556 3,272
Interest income (including interest (expense)
income related to The Wackenhut Corp. of
$35 and ($50)) 245 532
------- -------
Income before income taxes and equity
income of affiliates 5,801 3,804
Provision for income taxes 2,368 1,469
------- -------
Income before equity income of affiliates 3,433 2,335
Equity income of affiliates, net of income tax
provision of $172 and $154 264 246
------- -------
Net income $ 3,697 $ 2,581
======= =======
Basic earnings per share $ 0.17 $ 0.12
======= =======
Diluted earnings per share $ 0.16 $ 0.11
======= =======
Basic weighted average shares outstanding 22,185 21,945
======= =======
Diluted weighted average shares outstanding 22,816 22,600
======= =======
</TABLE>
The accompanying notes to consolidated financial statements are an integral part
of these statements.
Page 3 of 13
<PAGE> 4
WACKENHUT CORRECTIONS CORPORATION
CONSOLIDATED BALANCE SHEETS
MARCH 29, 1998 AND DECEMBER 28, 1997
(IN THOUSANDS EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
March 29, December 28,
1998 1997
--------- ---------
(UNAUDITED)
<S> <C> <C>
ASSETS
Current Assets:
Cash $ 22,543 $ 28,960
Accounts receivable 48,103 36,755
Other 13,566 9,457
--------- ---------
Total current assets 84,212 75,172
Property and equipment, net 39,150 38,754
Investments in and advances to affiliates 7,505 7,325
Deferred charges, net 12,118 14,218
Unamortized cost in excess of net assets
of acquired companies, net 2,316 2,359
Other 2,501 1,375
--------- ---------
$ 147,802 $ 139,203
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 5,550 $ 6,160
Accrued payroll and related taxes 7,251 8,316
Accrued expenses 14,557 11,717
Deferred tax liability, net 891 391
Current portion of long-term debt 12 12
--------- ---------
Total current liabilities 28,261 26,596
--------- ---------
Deferred income taxes, net 10,093 10,099
--------- ---------
Long-term debt 210 213
--------- ---------
Shareholders' equity:
Preferred stock, $.01 par value,
10,000,000 shares authorized -- --
Common stock, $.01 par value,
30,000,000 shares authorized,
22,223,297 and 22,168,542 shares
issued and outstanding 222 222
Additional paid-in capital 80,908 78,006
Retained earnings 29,920 26,223
Cumulative translation adjustment (1,812) (2,156)
--------- ---------
Total shareholders' equity 109,238 102,295
========= =========
$ 147,802 $ 139,203
========= =========
</TABLE>
The accompanying notes to consolidated financial statements are an integral part
of these balance sheets.
Page 4 of 13
<PAGE> 5
WACKENHUT CORRECTIONS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THIRTEEN WEEKS ENDED
MARCH 29,1998 AND MARCH 30, 1997
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
THIRTEEN WEEKS ENDED
-----------------------------------
MARCH 29, 1998 MARCH 30, 1997
-------------- --------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 3,697 $ 2,581
Adjustments to reconcile net income to net cash (used in)
provided by operating activities--
Depreciation and amortization expense 2,667 1,148
Equity income of affiliates (436) (400)
Changes in assets and liabilities --
(Increase) decrease in assets:
Accounts receivable (10,740) (3,321)
Deferred income tax, asset -- 307
Other current assets (1,841) (3,922)
Other assets (1,077) (4,284)
Increase (decrease) in liabilities:
Accounts payable and accrued expenses 2,120 457
Accrued payroll and related taxes (1,100) (561)
Deferred income taxes, net 2,364 1,291
-------- --------
NET CASH USED IN OPERATING ACTIVITIES (4,346) (6,704)
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Investments in affiliates (222) (788)
Capital expenditures (1,346) (2,557)
Deferred charge expenditures (1,674) (3,336)
-------- --------
NET CASH USED IN INVESTING ACTIVITIES (3,242) (6,681)
-------- --------
</TABLE>
(Continued)
The accompanying notes to consolidated financial statements are an integral part
of these statements.
Page 5 of 13
<PAGE> 6
WACKENHUT CORRECTIONS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THIRTEEN WEEKS ENDED
MARCH 29, 1998 AND MARCH 30, 1997
(IN THOUSANDS)
(UNAUDITED)
(Continued)
<TABLE>
<CAPTION>
THIRTEEN WEEKS ENDED
-----------------------------------
MARCH 29, 1998 MARCH 30, 1997
-------------- --------------
<S> <C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options $ 1,031 $ 136
Retirement of debt (3) (2)
Advances from The Wackenhut Corporation 14,425 15,725
Repayments to The Wackenhut Corporation (14,425) (15,725)
-------- --------
NET CASH PROVIDED BY FINANCING ACTIVITIES 1,028 134
-------- --------
Effect of exchange rate changes on cash 143 (13)
Net decrease in cash (6,417) (13,264)
Cash, beginning of period 28,960 44,368
-------- --------
CASH, END OF PERIOD $ 22,543 $ 31,104
======== ========
SUPPLEMENTAL DISCLOSURES:
Impact on equity from tax benefit related to the
exercise of options issued under the company's non-
qualified stock option plan $ 1,871 $ --
======== ========
</TABLE>
The accompanying notes to consolidated financial statements are an integral part
of these statements.
Page 6 of 13
<PAGE> 7
WACKENHUT CORRECTIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies followed for the quarterly financial reporting are the
same as those disclosed in Note 2 of the Notes To Consolidated Financial
Statements included in the Corporation's Form 10-K filed with the Securities and
Exchange Commission on March 28, 1997 for the fiscal years ended December 28,
1997 , December 29, 1996, and December 31, 1995 except as noted below in
footnote 3. Certain prior year amounts have been reclassified to conform with
current year financial statement presentation.
2. DOMESTIC AND INTERNATIONAL OPERATIONS
A summary of domestic and international operations is presented below:
THIRTEEN WEEKS ENDED
----------------------------------
MARCH 29, 1998 MARCH 30, 1997
-------------- --------------
(in thousands)
REVENUES
Domestic operations $58,841 $33,596
International operations 12,428 7,631
======= =======
Total revenues $71,269 $41,227
======= =======
OPERATING INCOME
Domestic operations $ 4,571 $ 2,232
International operations 985 1,040
------- -------
Total operating income $ 5,556 $ 3,272
======= =======
IDENTIFIABLE ASSETS MARCH 29, 1998 DECEMBER 28, 1997
-------------- -----------------
(in thousands)
Domestic operations $124,893 $120,538
International operations 22,909 18,665
======== ========
Total identifiable assets $147,802 $139,203
======== ========
3. DEFERRED CHARGES
Through December 28, 1997, the Company capitalized and amortized facility
start-up costs, consisting of costs of initial employee training, travel and
other direct expenses incurred in connection with the opening of new facilities,
on a straight-line basis over the lessor of the original contract term plus
renewals or five years. Effective December 29, 1997, the Company modified this
policy to amortize facility start-up costs over the lesser of the initial
contract term or five years. Had this policy been followed in prior periods, the
impact would have been immaterial.
In April 1998, the Financial Accounting Standards Board issued Statement of
Position 98-5 ("SOP 98-5") on Accounting for Costs of Start-up Activities. SOP
98-5 requires the expensing of start-up costs, defined as pre-opening,
pre-operating and pre-contract type costs, as incurred and is effective for
fiscal years beginning after December 15, 1998. If adopted by the Company in
fiscal 1998, the Company
Page 7 of 13
<PAGE> 8
WACKENHUT CORRECTIONS CORPORATION
anticipates a pre-tax write-off of existing unamortized start-up costs of
approximately $18.2 million (or $10.9 million after-tax) to record the
cumulative effect of the change in accounting principle.
4. COMPREHENSIVE INCOME
The Company adopted Statement of Financial Accounting Standards No. 130 ("SFAS
130"), "Reporting Comprehensive Income", effective December 29, 1998. SFAS 130
establishes standards for reporting and display of comprehensive income and its
components in financial statements. The components of the Company's
comprehensive income are as follows (dollars in thousands):
Thirteen Weeks Ended
<TABLE>
<CAPTION>
March 29, March 30,
1998 1997
------- -------
<S> <C> <C>
Net Income $ 3,697 $ 2,581
Foreign currency translation adjustments, net of income tax
(expense)/benefit of ($237) and $46, respectively 344 (73)
------- -------
Comprehensive income $ 3,901 $ 2,508
======= =======
</TABLE>
5. SALE OF FACILITIES TO CORRECTIONAL PROPERTIES TRUST
On April 28, 1998, Correctional Properties Trust ("CPV"), a Maryland real estate
investment trust, sold 6.2 million shares of common stock at $20.00 per share in
an initial public offering. Approximately $113.0 million of the net proceeds of
the offering were used to acquire eight correctional and detention facilities
operated by the Company. The Company received approximately $42 million for the
three facilities owned by it and for its right to acquire four of the other five
facilities and realized a profit on the sale of approximately $18 million which
will be amortized over the ten-year lease term. The eighth facility was
purchased directly from the government entity. Subsequent to the purchase, CPV
is leasing these eight facilities to the Company. CPV was also granted the
option to acquire three additional correctional facilities currently under
development by the Company and the fifteen-year right to acquire and lease back
future correctional and detention facilities developed or acquired by the
Company.
6. EARNINGS PER SHARE
The following table shows the amounts used in computing earnings per share in
accordance with Statement of Financial Accounting Standards No. 128 and the
effects on income and the weighted average number of shares of potential
dilutive common stock (in thousands, except share data).
<TABLE>
<CAPTION>
Thirteen Weeks Ended
March 29, 1998 March 30, 1997
------------------------------ --------------------------
Income Shares Income Shares
------------------------------ --------------------------
<S> <C> <C> <C> <C>
Net Income $ 3,697 $ 2,581
Basic EPS:
Income available to common shareholders $ 3,697 22,185 $ 2,581 21,945
Per share amount $ 0.17 $ 0.12
Effect of Dilutive Securites: $ 0.01 631 $ 0.01 655
Diluted EPS:
Income available to common shareholders $ 3,697 22,816 $ 2,581 22,600
Per share amount $ 0.16 $ 0.11
</TABLE>
Page 8 of 13
<PAGE> 9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
FINANCIAL CONDITION
Reference is made to Item 7, Part II of the Corporation's Annual Report on Form
10-K for the fiscal year ended December 28, 1997, filed with the Securities and
Exchange Commission on February 20, 1998, for further discussion and analysis of
information pertaining to the Corporation's results of operations, liquidity and
capital resources.
On April 28, 1998, the Company sold three facilities and its right to acquire
four additional facilities to Correctional Properties Trust for approximately
$42 million, resulting in a net profit of approximately $18 million which will
be amortized over the ten-year lease term. In connection with the sale, the
Company entered into a ten-year lease with CPV for eight correctional and
detention facilities currently operated by the Company.
FORWARD-LOOKING STATEMENTS: The management's discussion and analysis of
financial condition and results of operations and the April 23, 1998 press
release contain forward-looking statements that are based on current
expectations, estimates and projections about the segments in which the Company
operates. This section of the quarterly report also includes management's
beliefs and assumptions made by management. Words such as "expects",
"anticipates", "intends", "plans", "believes", "seeks", "estimates", and
variations of such words and similar expressions are intended to identify such
forward-looking statements. These statements are not guarantees of future
performance and involve certain risks, uncertainties and assumptions ("Future
Factors") which are difficult to predict. Therefore, actual outcomes and results
may differ materially from what is expressed or forecasted in such
forward-looking statements. The Company undertakes no obligation to update
publicly any forward-looking statements, whether as a result of new information,
future events or otherwise.
Future Factors include increasing price and product/service competition by
foreign and domestic competitors, including new entrants; rapid technological
developments and changes; the ability to continue to introduce competitive new
products and services on a timely, cost effective basis; the mix of
products/services; the achievement of lower costs and expenses; domestic and
foreign governmental and public policy changes including environmental
regulations; protection and validity of patent and other intellectual property
rights; reliance on large customers; technological, implementation and
cost/financial risks in increasing use of large, multi-year contracts; the
outcome of pending and future litigation and governmental proceedings and
continued availability of financing; financial instruments and financial
resources in the amounts, at the times and on the terms required to support the
Company's future business. These are representative of the Future Factors that
could affect the outcome of the forward-looking statements. In addition, such
statements could be affected by general industry and market conditions and
growth rates, general domestic and international economic conditions including
interest rate and currency rate fluctuations and other future factors.
Page 9 of 13
<PAGE> 10
RESULTS OF OPERATIONS
The following discussion and analysis should be read in conjunction with the
Corporation's consolidated financial statements and the notes thereto.
FIRST QUARTER 1998 COMPARED TO FIRST QUARTER 1997:
Revenues increased by 72.9% to $71.3 million in the thirteen weeks ended March
29, 1998 ("First Quarter 1998") from $41.2 million in the thirteen weeks ended
March 30, 1997 ("First Quarter 1997"). Approximately $29.8 million of the
increase in revenues in First Quarter 1998 compared to First Quarter 1997 is
attributable to increased compensated resident days resulting from the opening
of thirteen facilities in 1997 (South Bay Correctional Facility, South Bay,
Florida in February 1997; Travis County Community Justice Center, Travis County,
Texas in March 1997; Bayamon Regional Detention Center, Bayamon, Puerto Rico in
March 1997; Queens Private Correctional Facility, Queens, New York in March
1997; Fulham Correctional Center, Victoria, Australia in March 1997; Villawood
Detention Center, Sydney, Australia in October 1997; Taft Correctional
Institution, Taft, California in December 1997; Maribyrnong Detention Center,
Melbourne, Australia in December 1997; Perth Detention Centre, Perth, Australia
in December 1997; Port Hedland Detention Centre, Port Hedland, Australia in
December 1997; Central Valley Community Correctional Facility, McFarland,
California in December 1997; Desert View Community Correctional Facility,
Adelanto, California in December 1997; and Golden State Community Correctional
Facility, McFarland, California in December 1997), and with the opening of four
facilities in the First Quarter 1998: (Ronald "Opie" McPherson Correctional
Facility, Newport, Arkansas in January 1997; Scott Grimes Correctional Facility,
Newport, Arkansas in January 1997; Karnes County Correctional Center, Karnes
City, Texas, in January 1997; and Broward Work Release Center, Broward County,
Florida in February 1998). The balance of the increase in revenues was
attributable to facilities open during all of both periods.
The number of compensated resident days in domestic facilities increased to
1,540,572 in First Quarter 1998 from 963,788 in First Quarter 1997. Compensated
resident days in Australian facilities increased to 227,284 from 107,198 for the
comparable periods. The average facility occupancy in domestic facilities was
95.6% of capacity in First Quarter 1998 compared to 97.6% in First Quarter 1997.
This slight decrease was due primarily to the ramp-up of four new facilities
during First Quarter 1998.
Operating expenses increased by 72.3% to $59.3 million in First Quarter 1998
compared to $34.4 million in First Quarter 1997. This increase primarily
reflected the seventeen facilities that were opened in 1997 and 1998, as
described above.
Depreciation and amortization increased by 132.3% to $2.7 million in First
Quarter 1998 from $1.1 million in First Quarter 1997. This increase is primarily
attributable to an increase in deferred charge amortization for the thirteen
facilities opened in 1997.
Contribution from operations increased 64.5% to $9.3 million in First Quarter
1998 from $5.7 million in First Quarter 1997. As discussed above, this increase
is attributable to fourteen new facilities that opened in 1997 and 1998. As a
percentage of revenue, contribution from operations decreased to 13.1% in First
Quarter 1998 from 13.8% in First Quarter 1997. This decrease is primarily due to
the increase in deferred charge amortization discussed above.
Page 10 of 13
<PAGE> 11
General and administrative expenses increased by 57.4% to $3.8 million in First
Quarter 1998 from $2.4 million in First Quarter 1997. This increase reflects
costs related to additional infrastructure and continued growth in the Company's
business development efforts. As a percentage of revenue, general and
administrative expenses decreased to 5.3% in the First Quarter 1998 from 5.8% in
the First Quarter 1997.
Operating income increased by 69.8% to $5.6 million in First Quarter 1998 from
$3.3 million in First Quarter 1997. As a percentage of revenue operating income
decreased slightly to 7.8% in First Quarter 1998 from 7.9% in First Quarter 1997
due to the increase in deferred charge amortization, offset by the continued
leveraging of overheads.
Interest income decreased 54% to $245,000 in First Quarter 1998 from $532,000 in
First Quarter 1997. This decrease corresponds directly to a reduction in average
invested cash.
Income before taxes and equity income of affiliates increased by 52.5% to $5.8
million in First Quarter 1998 from $3.8 million in First Quarter 1997 due to the
factors described above.
Provision for income taxes increased to $2.4 million in First Quarter 1998 from
$1.5 million in First Quarter 1997 due to higher taxable income and an estimated
increase in the Company's effective tax rate.
Equity income of affiliates increased 7% to $264,000 in First Quarter 1998 from
$246,000 in First Quarter 1997. Current and prior year performance reflects the
activities of the Company's United Kingdom joint ventures and results from two
expansions at the H.M. Prison Doncaster (Doncaster, England) in 1997, income
earned from two court escort contracts that commenced operations in May 1996 and
the opening of H.M. Prison Lowdham Grange (Nottinghamshire, England) in February
1998.
Net income increased by 43.2% to $3.7 million in First Quarter 1998 from $2.6
million in First Quarter 1997 as a result of the factors described above.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not Applicable
Page 11 of 13
<PAGE> 12
WACKENHUT CORRECTIONS CORPORATION
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The nature of the Corporation's business results in claims or litigation against
the Corporation for damages arising from the conduct of its employees or others.
Except for routine litigation incidental to the business of the Corporation,
there are no pending material legal proceedings to which the Corporation or any
of its subsidiaries is a party or to which any of their property is subject. The
Corporation believes that the outcome of the proceedings to which it is
currently a party will not have a material adverse effect upon its operations or
financial condition.
ITEM 2. CHANGES IN SECURITIES
Not applicable.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable.
ITEM 5. OTHER INFORMATION
The Company filed Amendments No. 4 to Form S-3, Registration Statement under the
Securities Act of 1933 on April 22, 1998 in connection with the public offering
of Correctional Properties Trust, a Maryland real estate investment trust. The
original Form S-3 filing and subsequent amendments are hereby incorporated by
reference into this Quarterly Report on Form 10-Q.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits - 27 Financial Data Schedule (for SEC use only).
(b) Reports on Form 8-K - The Corporation did not file a Form 8-K during
the first quarter of the fiscal year ending January 3, 1999.
Page 12 of 13
<PAGE> 13
WACKENHUT CORRECTIONS CORPORATION
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.
WACKENHUT CORRECTIONS CORPORATION
May 12, 1998 /s/ John G. O'Rourke
------------------------
John G. O'Rourke
Senior Vice President - Finance,
Chief Financial Officer and Treasurer
(Principal Financial Officer)
Page 13 of 13
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEET AT MARCH 29, 1998 AND THE CONSOLIDATED STATEMENT OF
INCOME FOR THE FISCAL PERIOD ENDING MARCH 29, 1998 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-03-1999
<PERIOD-START> DEC-29-1997
<PERIOD-END> MAR-29-1998
<CASH> 22,543
<SECURITIES> 0
<RECEIVABLES> 48,103
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 84,212
<PP&E> 44,749
<DEPRECIATION> 5,599
<TOTAL-ASSETS> 147,802
<CURRENT-LIABILITIES> 28,262
<BONDS> 222
0
0
<COMMON> 222
<OTHER-SE> 109,238
<TOTAL-LIABILITY-AND-EQUITY> 147,802
<SALES> 0
<TOTAL-REVENUES> 71,269
<CGS> 0
<TOTAL-COSTS> 61,925
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 5,802
<INCOME-TAX> 2,368
<INCOME-CONTINUING> 3,697
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,697
<EPS-PRIMARY> .17
<EPS-DILUTED> .16
</TABLE>
