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 Quarterly Period Ended March 31, 1999
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 0-24612
ADTRAN, INC.
(Exact name of Registrant as specified in its charter)
Delaware 63-0918200
(State of Incorporation) (I.R.S. Employer
Identification No.)
901 Explorer Boulevard, Huntsville, Alabama 35806-2807
(Address of principal executive offices, including zip code)
(256) 963-8000
(Registrant's telephone number, including area code)
_______________
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 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:
Class Outstanding at April 30, 1999
Common Stock, $.01 Par Value 39,412,479 shares
Page 1 of 15
<PAGE>
ADTRAN, INC.
Quarterly Report on Form 10-Q
For the Quarter Ended March 31, 1999
Table of Contents
Item Page
Number PART I. FINANCIAL INFORMATION Number
1 Financial Statements (unaudited):
Condensed Balance Sheets as of March 31, 1999
and December 31, 1998 (audited) 3
Condensed Statements of Income for the three
months ended March 31, 1999 and 1998 4
Condensed Statements of Cash Flows for the three
months ended March 31, 1999 and 1998 5
Notes to Condensed Financial Statements 6
2 Management's Discussion and Analysis of Financial
Condition and Results of Operations 9
PART II. OTHER INFORMATION
6 Exhibits and Reports on Form 8-K 14
SIGNATURE 15
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ADTRAN, INC.
CONDENSED BALANCE SHEETS
ASSETS
March 31, December 31,
1999 1998
<S> <C> <C>
Current assets:
Cash and cash equivalents $36,574,151 $ 10,009,320
Short-term investments 28,547,550 40,795,068
Accounts receivable, less
allowance for doubtful accounts
of $862,002 and $958,805 in
1999 and 1998, respectively 48,643,334 46,588,319
Other receivables 912,783 697,074
Inventory 55,149,436 65,700,576
Prepaid expenses 1,826,747 1,354,366
Deferred income taxes 2,416,686 2,416,685
-------------------------------
Total current assets 174,070,687 167,561,408
Property, plant and equipment,less
accumulated depreciation of
$32,527,83 and $29,902,941 in
1999 and 1998, respectively 85,872,913 78,894,317
Other assets 220,000 220,000
Long-term investments 55,728,963 55,035,000
--------------------------------
$315,892,563 $301,710,725
================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $10,301,202 $10,980,097
Accrued salaries 2,956,443 1,828,462
Accrued income taxes 5,800,876 1,060,795
Accrued taxes other than
income taxes 304,861 252,548
Warranty liability 1,519,945 1,519,945
Compensated absences 1,523,974 1,384,802
--------------------------------
Total current liabilities 22,407,301 17,026,649
Long term liabilities:
Bonds payable 50,000,000 50,000,000
Deferred income taxes 3,295,140 3,295,140
-------------------------------
Total liabilities 75,702,441 70,321,789
-------------------------------
Stockholders' equity:
Common stock, par value $.01
per share 200,000,000 shares
authorized: 39,430,279 and
39,423,479 shares issued in
1999 and 1998, respectively 394,303 394,235
Additional paid-in capital 90,649,817 90,640,451
Retained earnings 172,680,799 163,570,297
Less treasury stock at cost:
1,120,081 and 1,100,081 shares
in 1999 and 1998, respectively (23,534,797) (23,216,047)
----------------------------------
Total stockholders' equity 240,190,122 231,388,936
---------------------------------
$315,892,563 $301,710,725
=================================
</TABLE>
See notes to condensed financial statements
<PAGE>
<TABLE>
ADTRAN, INC.
CONDENSED STATEMENTS OF INCOME
Audited
Three Months
Ended
March 31,
1999 1998
<S> <C> <C>
Sales $77,162,648 $65,327,234
Cost of sales 37,668,543 29,408,537
---------------------------
Gross profit 39,494,105 35,918,697
Selling, general and administrative expenses 16,594,352 13,257,590
Research and development expenses 9,673,687 8,378,356
---------------------------
Income from operations 13,226,066 14,282,751
Interest expense (570,000) (534,428)
Other income, net 1,043,938 1,354,961
----------------------------
Income before income taxes 13,700,004 15,103,284
Provision for income taxes (4,589,501) (5,210,633)
----------------------------
Net income $ 9,110,503 $ 9,892,651
============================
Weighted average shares outstanding
assuming dilution (1) 38,447,082 39,538,761
============================
Earnings per common share assuming
dilution (1)........ $ .24 $ .25
============================
Earnings per common share - basic $ .24 $ .25
============================
</TABLE>
(1) Assumes exercise of dilutive stock options calculated under the
treasury stock method.
See notes to condensed financial statements
<PAGE>
<TABLE>
ADTRAN, INC.
CONDENSED STATEMENTS OF CASH FLOWS
Unaudited
Three Months Ended
March 31,
1999 1998
<S> <C> <C>
Cash flows from operating activities:
Net income $9,110,503 $9,892,651
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation 2,624,898 1,963,469
Gain on sale of property, plant
and equipment 0 (667)
Loss on short-term investments 37,050 0
Change in operating assets:
Accounts receivable (2,055,016) 3,357,074
Inventory 10,551,140 365,725
Other receivables (215,709) (441,851)
Prepaid expenses (472,382) (890,830)
Change in operating lieabilities:
Accounts payable (678,894) 473,478
Accrued salaries 1,127,980 (174,691)
Accrued income taxes 4,740,081 2,697,849
Accrued taxes other than
income taxes 52,313 70,133
Compensated absences 139,172 180,746
-------------------------
Net cash provided by operating activities 24,961,136 17,493,086
--------------------------
Cash flows from investing activities:
Expenditures for property, plant
and equipment (9,603,494) (3,832,319)
Proceeds from the disposition of
property, plant and 0 10,000
equipment
Redemption (Purchase) of short-term
investments 12,210,468 (25,590,483)
Purchase of long-term investments (693,963) (5,035,000)
---------------------------
Net cash provided by (used in)
investing activitie 1,913,011 (34,447,802)
----------------------------
Cash flows from financing activities:
Proceeds from issuance of common stock 9,434 22,091
Purchase of treasury stock (318,750) 0
--------------------------
Net cash (used in) provided by
financing activities (309,316) 22,091
--------------------------
Net increase (decrease) in cash 26,564,831 (16,932,625)
and cash equivalents
Cash and cash equivalents, beginning 10,009,320 45,340,961
of period -------------------------
Cash and cash equivalents, end of period $36,574,151 $28,408,336
=========================
</TABLE>
See notes to condensed financial statements.
<PAGE>
ADTRAN, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
1. BASIS OF PRESENTATION
The interim condensed balance sheet of ADTRAN, Inc. (the "Company") at
December 31, 1998 has been derived from audited financial statements, but does
not include all disclosures required by generally accepted accounting
principles. The accompanying unaudited condensed financial statements of the
Company have been prepared pursuant to the rules and regulations for reporting
on Form 10-Q. Accordingly, certain information and notes required by generally
accepted accounting principles for complete financial statements are not
included herein. In the opinion of management, all adjustments necessary for a
fair presentation of these interim statements have been included and are of a
normal and recurring nature. Operating results for the three months ended March
31, 1999 are not necessarily indicative of the results that may be expected to
occur for the year ending December 31, 1999. The interim statements should be
read in conjunction with the financial statements and notes thereto included in
the Company's latest Annual Report on Form 1
2. INVENTORY
At March 31, 1999 and December 31, 1998, inventory consisted of the
following:
March 31, December 31,
1999 1998
Raw materials $30,201,434 $39,787,631
Work in progress 10,391,538 7,935,771
Finished goods 14,556,464 17,977,174
----------- -----------
$55,149,436 $65,700,576
3. RECENT ACCOUNTING DEVELOPMENTS
In June 1998, the FASB issued SFAS No. 133, Accounting for Derivative
Instruments and Hedging Activities. SFAS No. 133 requires all derivatives to be
measured at fair value and recognized as either assets or liabilities on the
balance sheet. Changes in such fair value are required to be recognized
immediately in net income to the extent the derivatives are not effective as
hedges. SFAS No. 133 is effective for fiscal years beginning after June 15, 1999
and is effective for interim periods in the initial year of adoption. The
Company does not currently hold any derivative financial instruments.
<PAGE>
4. EARNINGS PER SHARE
A summary of the calculation of basic and diluted earnings per share for
the three months ended March 31, 1999 and 1998 is as follows:
<TABLE>
For the Three Months Ended
March 31, 1999
<S> <C> <C> <C>
Income Shares Per-Share
(Numerator) (Denominator) Amount
BASIC EPS
Income available to common
stockholders $9,110,503 38,326,332 $0.24
EFFECT OF DILUTIVE SECURITIES
Stock Options 120,750
DILUTED EPS
Income available to common
conversions + assumed
conversions $9,110,503 38,447,082 $0.24
For the Three Months Ended
March 31, 1998
Income Shares Per-Share
(Numerator) (Denominator) Amount
BASIC EPS
Income available to common
stockholders $9,892,651 39,301,337 $.25
EFFECT OF DILUTIVE SECURITIES
Stock Options 237,424
DILUTED EPS
Income available to common
stockholders + assumed
conversions $9,892,651 39,538,761 $.25
</TABLE>
<PAGE>
5. SEGMENT INFORMATION
The Company operates two reportable segments - (1) the Carrier Network
Division (formerly Telco) and (2) the Enterprise Network Division (formerly
CPE). The Company evaluates the performance of its segments based on gross
profit; therefore, selling, general and administrative costs, as well as
research and development, interest income/expense, and the provision for taxes
are reported on an entity wide basis only. There are no intersegment revenues.
The table below presents information about the reported sales and gross
profit of the Company for the three months ended March 31, 1999 and 1998. Asset
information by reportable segment is not reported, since the Company does not
produce such information internally.
First Quarter First Quarter
1999 1998
Sales Gross Sales Gross
Profit Profit
(in thousands)
Carrier Network $47,652 $24,407 $40,696 $22,378
Enterprise Network 29,511 15,087 24,631 13,541
-------------------------------------------
Total $77,163 $39,494 $65,327 $35,919
The following table presents sales information by geographic area for the
quarters ended March 31:
Sales (in thousands) First First
Quarter Quarter
1999 1998
United States $74,656 $60,954
Foreign 2,507 4,373
-------------------------
$77,163 $65,327
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Overview
ADTRAN, Inc. (the "Company") designs, develops, manufactures, markets and
services a broad range of high speed digital transmission products utilized by
telephone companies ("Telcos") and corporate end-users to implement advanced
digital data services over existing telephone networks. The Company currently
sells its products to Telcos (including all of the Regional Bell Operating
Companies), what is now referred to by the Company as the Carrier Network
Division, and to private end-users in the Enterprise Network Division (formerly
known as the Customer Premises Equipment or CPE market).
The Company's sales have increased each year due primarily to increases in
the number of units sold to both new and existing customers. These annual sales
increases reflect the Company's strategy of increasing unit volume and market
share through the introduction of succeeding generations of products having
lower selling prices and increased functionality as compared to the prior
generation of a product and to the products of competitors. An important part of
the Company's strategy is to engineer the reduction of the product cost of each
succeeding product generation and then to lower the product's price based on the
cost savings achieved. As a part of this strategy, the Company seeks in most
instances to be a low-cost, high-quality provider of products in its markets.
The Company's success to date is attributable in large measure to its ability to
initially design its products with a view to their subsequent re-design,
allowing efficient enhancements of the product in each succeeding product
generation. This strategy has enabled the Company to sell succeeding generations
of products to existing customers as well as to increase its market share by
selling these enhanced products to new customers.
The Company intends to retain all earnings for use in the development of
its business and does not anticipate paying any cash dividends in the
foreseeable future.
When used in this Form 10-Q, the words "believe," "anticipate," "think,"
"intend," "will be," and similar expressions identify forward-looking
statements. Such statements are subject to certain risks and uncertainties which
could cause actual results to differ materially from those projected. Readers
are cautioned not to place undue reliance on these forward-looking statements
which speak only as of the date hereof. Readers are also urged to carefully
review and consider the various disclosures made by the Company which attempt to
advise interested parties of the factors which affect the Company's business,
including the disclosures made in other periodic reports on Forms 10-K, 10-Q and
8-K filed with the Securities and Exchange Commission.
<PAGE>
RESULTS OF OPERATIONS - THREE MONTHS ENDED MARCH 31, 1999 COMPARED
TO THREE MONTHS ENDED MARCH 31, 1998
SALES
The Company's sales increased 18.1% from $65,327,234 in the three months
ended March 31, 1998 to $77,162,648 in the three months ended March 31, 1999.
The increased sales resulted from an increase in sales volume to existing
customers and from increased market penetration. Carrier Network (formerly known
as Telco) sales increased from $40,696,014 in the three months ended March 31,
1998 to $47,651,669 in the three months ended March 31, 1999. The increase in
Carrier Network sales in the 1999 period resulted primarily from increased sales
of High bit-rate Digital Subscriber Line ("HDSL") products and Integrated
Services Digital Network ("ISDN") products. Carrier Network sales as a
percentage of total sales decreased from 62.3% in the three months ended March
31, 1998 to 61.8% in the three months ended March 31, 1999. Sales of Enterprise
Network (formerly known as CPE) products increased 19.8% from $24,631,220 in the
three months ended March 31, 1998 to $29,510,979 in the three months ended March
31, 1999, as a result of increased sales of "T-1" products, (a digital
transmission link with a capacity of 1.544 megabits per second used
predominantly in North America). As a percentage of total sales, Enterprise
Network sales increased from 37.7% in the three months ended March 31, 1998 to
38.2% in the three months ended March 31, 1999. The financial effect of the
increase in overall unit volume was offset somewhat by lower unit selling prices
for many of the Company's products.
COST OF SALES
Cost of sales increased 28.1% from $29,408,537 in the three months ended
March 31, 1998 to $37,668,543 in the three months ended March 31, 1999, due
primarily to the increased sales mix and volume of the more expensive HDSL
products. As a percentage of sales, cost of sales increased from 45.0%in the
three months ended March 31, 1998 to 48.8% in the three months ended March 31,
1999. Carrier Network cost of sales increased 26.9% from $18,318,666 in the
three months ended March 31, 1998 to $23,244,312 in the three months ended March
31, 1999. Carrier Network cost of sales as a percentage of Carrier Network sales
increased from 45.0% in the three months ended March 31, 1998 to 48.8% in the
three months ended March 31, 1999. Enterprise Network cost of sales increased
slightly from $11,089,871 in the three months ended March 31, 1998 to
$14,424,231 in the three months ended March 31, 1999. Enterprise Network cost of
sales as a percentage of Enterprise Network sales increased from 45.0% in the
three months ended March 31, 1998 to 48.9% in the three months ended March 31,
1999. An important part of the Company's strategy is to reduce the product cost
of each succeeding product generation and then to lower the product's price
based on the cost savings achieved. This strategy sometimes results in
variations in the Company's gross profit margin due to timing differences
between the recognition of cost reductions and the lowering of product selling
prices. In view of the rapid pace of new product introductions by the Company,
this strategy may result in variations in gross profit margins that, for any
particular financial period, can be difficult to predict.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative expenses increased 25.2% from
$13,257,590 in the three months ended March 31, 1998 to $16,594,352 in the three
months ended March 31, 1999. The increase was due to additional sales and
support expenditures necessary as a result of the Company's expanded sales base.
Selling, general and administrative expenses as a percentage of sales increased
from 20.3% in the three months ended March 31, 1998 to 21.5% in the three months
ended March 31, 1999.
RESEARCH AND DEVELOPMENT EXPENSES
Research and development expenses increased 15.5% from $8,378,356 in the
three months ended March 31, 1998 to $9,673,687 in the three months ended March
31, 1999. The increase was due to increased investment in product development
and cost reduction through engineering. As a percentage of sales, research and
development expenses decreased from 12.8% in the three months ended March 31,
1998 to 12.5% in the three months ended March 31, 1999. The Company will
continue to invest in these product development activities because they are
necessary to position the Company to accumulate market share and maintain growth
over the longer term.
INTEREST EXPENSE
Interest expense increased 6.7% from $534,428 in the three months ended
March 31, 1998 to $570,000 in the three months ended March 31, 1999. See
"Liquidity and Capital Resources" below.
NET INCOME
As a result of the above factors, net income decreased slightly from
$9,892,651 in the three months ended March 31, 1998 to $9,110,503 in the three
months ended March 31, 1999. As a percentage of sales, net income decreased from
15.1% in the three months ended March 31, 1998 to 11.8% in the three months
ended March 31, 1999.
LIQUIDITY AND CAPITAL RESOURCES
The Company is continuing a project to expand its facilities in Huntsville
in several phases over the next two years at a cost of approximately
$150,000,000, of which $57,428,780 had been incurred as of March 31, 1999. The
debt associated with $50,000,000 of this project was approved for participation
in an incentive program offered by the Alabama State Industrial Development
Authority (the "Authority") under which the Authority issued $50,000,000 of its
taxable revenue bonds (the "Amended and Restated Bond"), pursuant to such
program and loaned the proceeds from the sale of the Amended and Restated Bond
to the Company. The Company will make payments to the Authority in amounts
necessary to pay the principal of and interest on the Amended and Restated Bond,
which matures on January 1, 2020.
The Company's working capital position increased slightly from $150,534,759
as of December 31, 1998 to $151,663,386 as of March 31, 1999 due to cash
generated from operations. The Company has used, and expects to continue to use,
the cash generated from operations for working capital and other general
corporate purposes, including (i) product development activities to enhance its
existing products and develop new products and (ii) expansion of sales and
marketing activities. Inventory decreased 16% from December 31, 1998 to March
31, 1999. This decrease was attributable to the increased shipments of existing
stock, planned for and built up in 1998.
On March 31, 1997, the Board of Directors authorized the Company to
re-purchase up to 1,000,000 shares of the Company's outstanding common stock. In
October 1998, the Board approved the re-purchase of an additional 2,000,000
shares. As of March 31, 1999, the Company had re-purchased 1,120,081 shares of
its common stock at a total cost of $23,534,797.
Capital expenditures totaling $23,095,854 for the year ended December 31,
1998 and $9,603,494 in the first three months of 1999 were used to expand the
Company's headquarters and to purchase equipment.
At March 31, 1999, the Company's cash on hand of $36,574,151, short- term
investments of $28,547,550 and $10,000,000 available under a bank line of credit
placed the Company's potential cash availability at $75,121,701, of which a
portion is being used to expand the Company's facilities under the incentive
program described above. The Company's $10,000,000 bank line of credit bears
interest at the rate of 87.5 basis points over the 30 day London inter-bank
offered rate. The Company intends to renew its $10,000,000 bank line of credit
upon expiration in May 2000.
The Company intends to finance its operations in the future with cash flow
from operations, amounts available under the bank line of credit, borrowed
taxable revenue bond proceeds, and possible additional public financings. These
available sources of funds are expected to be adequate to meet the Company's
operating and capital needs for the foreseeable future.
YEAR 2000 READINESS DISCLOSURE
The Company conducted a year 2000 program to assess and mitigate the impact
of the year 2000 issue. The Company believes that all critical information
technology and non-information technology hardware and software systems are year
2000 compliant, including, but not limited to, business systems, network
infrastructure, manufacturing equipment, engineering tools, customer products
and plant facilities.
The Company has completed the inventory and assessment phases of its year
2000 program. The Company's operations are not dependent upon older legacy
source code or mainframe computers as is often the case with systems with
significant year 2000 issues. Therefore, there is little or no date-related code
remediation or conversion necessary to maintain normal business activities. The
primary remaining effort in the year 2000 program is to review and validate the
conclusions reached by the Company's year 2000 assessment. The Company does not
believe that costs associated with bringing the Company's computer systems into
full compliance with the year 2000 issue will result in a material expense to
the Company.
In July of 1998, the Company completed the implementation of new business
software and hardware which the Company believes is year 2000 compliant. The
Company upgraded some secondary systems which were identified with minor year
2000 issues. Likewise, testing and year 2000 simulations were performed on all
Company systems to verify date processing capabilities. As of March 31, 1999 all
critical systems have been tested and are believed to be year 2000 compliant.
The Company has also contacted and assessed its suppliers and
subcontractors regarding the year 2000 issue and concluded that those suppliers
and subcontractors, which have a material relationship with the Company, are not
expected to cause significant business interruptions to occur as a result of the
year 2000 issue. The Company's assessment of suppliers has identified those most
critical to the Company's operations and a contingency plan has been drafted to
handle issues in the future. The Company's primary external subcontractors are
conducting their own independent internal year 2000 programs and are being
assisted by the Company with their year 2000 preparations where appropriate.
The Company believes that its products are year 2000 compliant. Company
engineers have confirmed product design specifications and have verified product
date processing functionality. Customers are provided individual responses to
product inquiries and the Company has posted detailed year 2000 information on
its web site. The Company does not believe that it will have any material
exposure to contingencies related to the year 2000 issue for products it has
sold.
Based on information presently available, the Company does not anticipate
any material impact on its financial condition or results of operations from the
effect of the year 2000 issue on its internal systems or on those systems of its
major suppliers and customers. However, there can be no guarantee that the
systems of other companies on which the Company relies will be timely converted,
or that a failure to convert by another company would not have a material
adverse impact on the Company. Furthermore, despite the Company's assessments,
there can be no guarantee that there will not be a year 2000 problem arising
from the Company's own system that may have a material adverse impact on the
Company.
As of March 31, 1999 the Company had spent approximately $140,000 for year
2000 compliance. The Company anticipates spending an additional $40,000 during
1999. The Company does not separately track these internal costs incurred for
the Y2K project. However, this cost consisted primarily of the related payroll
costs of its information systems group.
<PAGE>
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) The following exhibits are being filed with this report.
None
(b) Reports on Form 8-K. None
<PAGE>
SIGNATURE
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.
ADTRAN, INC.
--------------
(Registrant)
Date: May 14, 1999 /s/ John R. Cooper
---------------------------
John R. Cooper
Vice President - Finance and
Chief Financial Officer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED STATEMENT OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND THE
CONDENSED BALANCE SHEET AS OF MARCH 31, 1999 AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000926282
<NAME> ADTRAN, INC.
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLAR
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<EXCHANGE-RATE> 1
<CASH> 36,574,151
<SECURITIES> 28,547,550
<RECEIVABLES> 48,643,334
<ALLOWANCES> 862,002
<INVENTORY> 55,149,436
<CURRENT-ASSETS> 174,070,687
<PP&E> 118,400,752
<DEPRECIATION> 32,527,839
<TOTAL-ASSETS> 315,892,563
<CURRENT-LIABILITIES> 22,407,301
<BONDS> 50,000,000
0
0
<COMMON> 394,303
<OTHER-SE> 240,190,122
<TOTAL-LIABILITY-AND-EQUITY> 315,892,563
<SALES> 77,162,648
<TOTAL-REVENUES> 77,162,648
<CGS> 37,668,543
<TOTAL-COSTS> 37,668,543
<OTHER-EXPENSES> 16,594,352
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 570,000
<INCOME-PRETAX> 13,700,004
<INCOME-TAX> 4,589,501
<INCOME-CONTINUING> 9,110,503
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 9,110,503
<EPS-PRIMARY> .24
<EPS-DILUTED> .24
</TABLE>
