<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 2, 1996
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 NO. 0-24788
MACHEEZMO MOUSE RESTAURANTS, INC.
(Exact name of small business issuer as specified in its charter)
<TABLE>
<S> <C>
OREGON 93-0929139
(State or other jurisdiction of (I.R.S. Employer Identification Number)
incorporation or organization)
1020 SW Taylor Street, Suite 685
Portland, Oregon 97205
(Address of principal executive offices) (Zip Code)
</TABLE>
(503) 274-0001
(Issuer's telephone number)
Not applicable.
(Former name, former address and former fiscal year,
if changed since last report)
Check whether the issuer (1) 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 registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
Yes XX No
--
Shares of Common Stock outstanding, at April 30, 1996: 3,920,479
<PAGE>
MACHEEZMO MOUSE RESTAURANTS, INC.
INDEX
Page
PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements
Condensed Balance Sheets at April 2, 1996 and June 27, 1995.... 1
Condensed Statement of Operations for the Twelve Weeks
and Forty Weeks Ended April 2, 1996 and April 4, 1995.......... 2
Condensed Statement of Cash Flows for the Forty Weeks
Ended April 2, 1996 and April 4, 1995.......................... 3
Notes to Unaudited Condensed Financial Statements.............. 4
Item 2 - Management's Discussion and Analysis of Financial
Conditions and Results of Operations...................... 5
PART II - OTHER INFORMATION
Item Exhibits and Reports on Form 8-K ......................... 10
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1 - Financial Statements
MACHEEZMO MOUSE RESTAURANTS, INC.
CONDENSED BALANCE SHEETS
(In thousands, except share amounts)
<TABLE>
<CAPTION>
April 2, June 27,
1996 1995
---------- ---------
(unaudited)
<S> <C> <C>
Assets
Current Assets
Cash and cash equivalents $ 571 $ 489
Short term investments in government securities 2,489 2,442
Inventories 143 110
Non-trade receivable 73 95
Current deferred tax asset 9 9
Other current assets 144 95
---------- ---------
Total current assets 3,429 3,240
Property and equipment, net 4,398 4,431
Long term investments in government securities 499 1,474
Long term deferred tax asset 94 154
Other assets 57 69
---------- ---------
$ 8,477 9,368
---------- ---------
---------- ---------
LIABILITIES AND PREFERRED STOCK,
COMMON STOCK AND OTHER SHAREHOLDERS' EQUITY (DEFICIT)
Current liabilities
Accounts payable 350 463
Accrued payroll and payroll related expenses 184 200
Accrued expenses and other current liabilities 64 50
---------- ---------
Total current liabilities $ 598 $ 713
Other deferred liabilities
Deferred rent expense 173 172
Other liabilities -- 40
---------- ----------
Total liabilities $ 771 $ 925
---------- ---------
---------- ---------
Preferred Stock, Common Stock, and Other Shareholders' Equity (deficit):
Preferred stock, undesignated, 5,000 shares authorized, none issued --
Common stock, 10,000 shares authorized, 3,920
issued and outstanding at April 2, 1996 and 3,913 shares
issued and outstanding at June 27, 1995 10,145 10,130
Paid-in-capital 55 55
Accumulated deficit (2,494) (1,742)
---------- ---------
Total preferred stock, common stock, and other
shareholders' equity (deficit) 7,706 8,443
---------- ---------
$ 8,477 $ 9,368
---------- ---------
---------- ---------
</TABLE>
See Notes to Condensed Financial Statements
1
<PAGE>
MACHEEZMO MOUSE RESTAURANTS, INC.
STATEMENT OF OPERATIONS
(In thousands, except share and per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
For the Twelve For the Forty
Weeks Ended Weeks Ended
--------------------- ------------------------
April 2, April 4, April 2, April 4,
1996 1995 1996 1995
--------- --------- -------- ---------
<S> <C> <C> <C> <C>
Sales $ 2,085 $ 2,367 $ 7,567 $ 7,871
Cost and expenses
Food, beverage and packaging costs 583 624 2,055 2,105
Restaurant labor 702 684 2,472 2,229
Other restaurant operating expenses 546 406 1,771 1,251
Depreciation and amortization 185 134 597 384
General and administrative expenses 412 403 1,555 1,176
-------- -------- -------- --------
Total operating costs and expenses 2,428 2,251 8,450 7,145
-------- -------- -------- --------
Operating income (loss) (343) 116 (883) 726
Other expenses (income)
Interest income (51) (70) (191) (153)
Interest expense -- -- -- 6
Loss on disposal of equipment -- -- -- 3
-------- -------- -------- --------
Income (loss) before income taxes (292) 186 (692) 870
-------- -------- -------- --------
(Benefit) provision for income taxes 25 (5) 60 109
-------- -------- -------- --------
Net income (loss) $ (317) $ 191 $ (752) $ 761
-------- -------- -------- --------
-------- -------- -------- --------
Net income (loss) per share $ (0.08) $ 0.05 $ (0.19) $ 0.21
-------- -------- -------- --------
-------- -------- -------- --------
Shares used in computing
per share amounts 3,920 3,998 3,917 3,655
-------- -------- -------- --------
-------- -------- -------- --------
</TABLE>
See Notes to Condensed Financial Statements
2
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CASH FLOWS
(In thousands) For the Forty Weeks Ended
-------------------------
(Unaudited) April 2, April 4,
1996 1995
----------- ---------
<S> <C> <C>
Cash flows from operating activities
Net income (loss) $ (752) $ 761
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization 597 384
Loss on disposal of equipment -- 3
Discount premium amortization on investments (10) --
Deferred tax assets 60 --
Net changes in operating assets and liabilities:
Inventories (33) (12)
Non-trade receivables 22 (107)
Other current assets (49) (119)
Accounts payable, accrued expenses, and deferred liabilities (154) 392
----------- ---------
Net cash provided (used) by operating activities (319) 1,302
----------- ---------
Cash flows from investing activities:
Acquisition of property and equipment (564) (1,970)
Proceeds from maturity of government securities 1,931 --
Investment securities purchased (993) (2,942)
Decrease (increase) in other assets 12 (14)
----------- ---------
Net cash provided (used) in investing activities: 386 (4,926)
----------- ---------
Cash flows from financing activities
Net cash proceeds from sale of common stock -- 5,871
Proceeds from exercise of stock options 15 48
Payments on line of credit -- (281)
----------- ---------
Net cash provided by financing activities 15 5,638
----------- ---------
Net increase in cash and cash equivalents 82 2,014
----------- ---------
Cash and cash equivalents at beginning of period 489 87
----------- ---------
Cash and cash equivalents at end of period $ 571 $ 2,101
----------- ---------
----------- ---------
Supplemental disclosure of cash flow information:
Cash paid for:
Interest -- $ 8
Income taxes $ 25 $ 166
</TABLE>
See Notes to Condensed Financial Satements
3
<PAGE>
MACHEEZMO MOUSE RESTAURANTS, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. BASIS OF PRESENTATION
The accompanying condensed financial statements of the Company for the
forty weeks ended April 2, 1996 and April 4, 1995 have been prepared in
accordance with generally accepted accounting principles, and with the
instructions to Form 10-QSB. These financial statements have not been audited
by independent public accountants, but include all adjustments (consisting of
normal recurring adjustments) which are, in the opinion of management, necessary
for a fair presentation of the financial condition, results of operations and
cash flows for such periods. However, these results are not necessarily
indicative of results for any subsequent interim period or for a full year.
Certain information and footnote disclosures normally included in
financial statements in accordance with generally accepted accounting
principles have been omitted pursuant to requirements of the Securities and
Exchange Commission. Management believes that the disclosures are sufficient
for interim financial reporting purposes, but should be read in conjunction
with the financial statements and notes thereto included in the Company's
annual report on Form 10-KSB for the year ended June 27, 1995.
Reclassifications have been reflected in year to date financial
statements to conform the presentations to that of April 2, 1996.
2. STOCK INCENTIVE PLAN
In October 1995, the Company, under the 1986 Incentive Stock Option
Plan, granted 26,000 shares at fair market value. At April 2, 1996, 239,812
shares remaining are available for grant.
3. LINE OF CREDIT
In December 1995, the Company obtained an unsecured revolving line of
credit for $600,000. The agreement requires the Company to maintain certain
financial ratios and covenants. Borrowings bear interest rates ranging from
bank's prime rate to the bank's prime rate plus 1/2% and the agreement expires
October 31, 1996. As of April 2, 1996, there were no borrowings under the line
of credit.
4. PROVISION FOR INCOME TAXES
Management estimated that recorded deferred tax assets may not be fully
utilized, and established a valuation reserve resulting in a tax provision of
$60,000 for the forty weeks ended April 2, 1996.
4
<PAGE>
PART I. FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
INTRODUCTION
The Company commenced operations in 1981 with the opening of its first
restaurant in Portland, Oregon. As of April 2, 1996, the Company owned and
operated 22 Macheezmo Mouse restaurants. During the forty weeks ended April 2,
1996, the Company opened two restaurants and closed another. This expansion
affects the comparability of results of operations from period to period. Sales
volume for a new restaurant generally is higher in the first three four-week
periods after the restaurant is opened than in subsequent periods, in part as
the result of special promotional efforts in the opening periods. In addition,
new restaurants may have lower restaurant operating income as a percentage of
sales due to higher fixed costs of operation.
The Company's fiscal year ends on the Tuesday nearest June 30 and is
comprised of fifty-two or fifty-three weeks divided into four quarters of
sixteen, twelve, twelve, and twelve or thirteen weeks, respectively. The 1995
fiscal year comprised fifty-two weeks and fiscal 1996 will comprise fifty-three
weeks. Consequently, consecutive quarter-to-quarter comparisons of the
Company's results of operations may not be meaningful, and results for any
quarter are not necessarily indicative of the actual results for a full fiscal
year.
From time to time the Company may issue forward-looking statements that
involve a number of risks and uncertainties. The following are among the
factors that could cause actual results to differ materially from the forward-
looking statements: business conditions and growth in the restaurant industry
and general economics, both domestic and international; lower than expected same
restaurant sales; competitive factors, including increased competition, new
product offerings by competititors and price pressures; the availability of
labor, food ingredients and beverages at reasonable prices; changes in menu
offerings; and seasonal differences in sales volume. The forward-looking
statements contained in this document regarding industry trends, menu offering
development and introduction, sales and marketing trends, litigation, liquidity
and future business activities should be considered in light of these factors.
RESULTS OF OPERATIONS
The following is a comparative discussion of the results of operations for
twelve and forty weeks ended April 2, 1996. The table sets forth the percentage
relationship to total revenues, unless otherwise indicated, of certain income
statement data. The table also sets forth certain restaurant data for the
periods indicated.
5
<PAGE>
RESULTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
For the Twelve For the Forty
Weeks Ended Weeks Ended
--------------------- -------------------
Income Statement Data: April 2, April 4, April 2, April 4,
1996 1995 1996 1995
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Sales 100.0% 100.0% 100.0% 100.0%
Cost and expenses
Food, beverage and packaging costs 28.0% 26.4% 27.1% 26.7%
Restaurant labor 33.7% 28.9% 32.7% 28.3%
Other restaurant operating expenses 26.2% 17.1% 23.4% 15.9%
Depreciation and amortization 8.9% 5.7% 7.9% 4.9%
General and administrative expenses 19.7% 17.0% 20.6% 15.0%
------ ------ ------ ------
Total operating costs and expenses 116.5% 95.1% 111.7% 90.8%
------ ------ ------ ------
Operating income (loss) (16.5)% 4.9% (11.7)% 9.2%
Other expenses (income)
Interest income (2.5)% (3.0)% (2.6)% (2.0)%
Interest expense -- -- -- 0.1%
Loss on disposal of equipment -- -- -- 0.1%
------ ------ ------ ------
Income (loss) before income taxes (14.0)% 7.9% (9.1)% 11.0%
(Benefit) provision for income taxes 1.2% (0.1)% 0.8% 1.4%
------ ------ ------ ------
Net income (loss) (15.2)% 8.0% (9.9)% 9.6%
------ ------ ------ ------
------ ------ ------ ------
Restaurant operating data:
Number of restaurants
Open at beginning of period 22 17 21 13
Open during period -- 1 2 5
Closed during period -- -- 1 --
Open at end of period 22 18 22 18
</TABLE>
6
<PAGE>
MACHEEZMO MOUSE RESTAURANTS, INC.
RESULTS OF OPERATIONS: TWELVE WEEKS ENDED APRIL 2, 1996
COMPARED TO TWELVE WEEKS ENDED APRIL 4, 1995
SALES. Restaurant sales decreased $282,000 (12%) to $2,085,000 for the third
quarter of fiscal 1996 from $2,367,000 for the third quarter of fiscal 1995.
This decrease was primarily due to lower than anticipated sales volumes for
units opened during fiscal 1995 and a 27% decline in same restaurant sales
compared to the third quarter of fiscal 1995. The Company believes intensified
industry competition and the Company's expansion within existing trade areas
are factors that have had a negative impact on sales. At the end of the third
quarter of fiscal 1996, the Company operated 22 restaurants. "Same restaurant
sales" consist of restaurants open at least one fiscal year plus three
four-week periods.
In response to the results of a marketing research study performed
during the first and second quarter of fiscal 1996, the Company began to
review its current menu and test new menu offerings. During the third
quarter of fiscal 1996, the Company introduced a new menu offering and began
product rollout. The Company will continue to review and test new menu
offerings. In addition, the Company is developing a long-term marketing plan
designed to increase and build customer awareness.
COSTS AND EXPENSES. Food, beverage and packaging expenses increased as a
percentage of sales to 28.0% in the third quarter of fiscal 1996 from 26.4% in
the third quarter of fiscal 1995. This increase was due to higher prices for
tortilla and paper products and the introduction of new menu offerings.
Restaurant labor expense, which consists primarily of restaurant
management and hourly employee wages, payroll taxes, workers' compensation
and group insurance, increased as a percentage of sales to 33.7% in the third
quarter of fiscal 1996 from 28.9% in the third quarter of fiscal 1995. This
percentage increase reflects the effect of the Company's decline in
restaurant sales and an expanded employee benefit package implemented during
the third quarter of fiscal 1996.
Other restaurant operating expenses increased as a percentage of
sales to 26.2% in the third quarter of fiscal 1996 from 17.1% in the third
quarter of fiscal 1995. This increase as a percentage of sales was primarily
due to higher occupancy costs associated with new restaurants and to the
effect of the decline in same restaurant sales. Most of these expenses, such
as rent, utilities and miscellaneous supplies and services are substantially
fixed in nature. As same restaurant sales decline, these expenses increase
as a percentage of revenue. Costs related to the new menu offerings accounted
for a small portion of the percentage of increase.
Depreciation and amortization expense increased as a percentage of
sales to 8.9% in the third quarter of fiscal 1996 from 5.7% in the third
quarter of fiscal 1995 due to higher fixed asset costs associated with new
restaurants and the effect of the decline in same restaurant sales.
General and administrative expenses increased as a percentage of
sales to 19.7% in the third quarter of fiscal 1996 from 17.0% in the third
quarter of fiscal 1995. This increase as a percentage of sales was primarily
due to the effect of the Company's decline in restaurant sales. The dollar
increase was primarily the result of marketing costs associated with the new
menu rollout program. This dollar increase was offset by a decrease in other
overhead expenses as part of the Company's continuing focus on controlling
corporate overhead costs.
OTHER EXPENSES (INCOME). Interest income was $51,000 for the third quarter
of fiscal 1996 compared to $70,000 for the third quarter of fiscal 1995. The
decrease in interest income resulted primarily from the use of invested funds
from the Company's September 1994 initial public offering to finance new
restaurant construction.
7
<PAGE>
PROVISION FOR INCOME TAXES. The effective tax rate for the third quarter of
fiscal 1996 was 8.5% compared to an effective income tax benefit rate of 2.7%
for the same period of fiscal 1995. Management estimated that the recorded
deferred tax assets may not be fully utilized and accordingly have recorded a
valuation allowance against such assets. A valuation reserve of $25,000 was
charged to income tax expense for the third quarter of fiscal 1996.
RESULTS OF OPERATIONS: FORTY WEEKS ENDED APRIL 2, 1996
COMPARED TO FORTY WEEKS ENDED APRIL 4, 1995
SALES. Restaurant sales decreased $304,000 (4%) to $7,567,000 in the first
forty weeks of fiscal 1996 from $7,871,000 for the same period of fiscal 1995.
This decrease was primarily due to lower than anticipated sales volumes for
units opened during fiscal 1995 and a decline in same restaurant sales of 29%
compared to the first forty weeks of fiscal 1995. The Company believes
intensified industry competition and the Company's expansion within existing
trade areas are factors that have had a negative impact on sales.
In response to declining sales, the Company performed a marketing research
study during the first and second quarter of fiscal 1996, to review its market
position and customer base. In response to the results of the marketing
research study, the Company reviewed its current menu and tested new menu
offerings. During the third quarter of fiscal 1996, the Company introduced a
new menu offering and began product rollout. The Company will continue to
review and test new menu offerings. In addition, the Company is developing a
long-term marketing plan designed to increase and build customer awareness.
COSTS AND EXPENSES. Food, beverage and packaging expenses increased as a
percentage of sales to 27.1% in the first forty weeks of fiscal 1996, from 26.7%
for the same period of fiscal 1995. This increase was primarily due to an
increase in the price of paper and beverage costs offset by a slight decrease in
chicken prices.
Restaurant labor expense, which consists primarily of restaurant management
and hourly employee wages, payroll taxes, workers' compensation and group
insurance, increased as a percentage of sales to 32.7% in the first forty weeks
of fiscal 1996 from 28.3% for the same period of fiscal 1995. This percentage
increase reflects the effect of the Company's decline in restaurant sales and an
expanded employee benefit package implemented during quarter three of fiscal
1996.
Other restaurant operating expenses increased as a percentage of sales to
23.4% in the first forty weeks of fiscal 1996 from 15.9% for the same period of
fiscal 1995. This increase as a percentage of sales was due to higher occupancy
costs associated with new restaurants and to the effect of the decline in same
restaurant sales. Most of these expenses, such as rent, utilities and
miscellaneous supplies and services are substantially fixed in nature. As same
restaurant sales decline, these expenses increase as a percentage of revenue.
In addition, occupancy charges relating to the Company's decision not to renew a
restaurant lease accounted for a small portion of the increase.
Depreciation and amortization expense increased as a percentage of sales to
7.9% in the first forty weeks of fiscal 1996 from 4.9% for the same period of
fiscal 1995 due to higher fixed asset costs associated with new restaurants and
the effect of the decline in same restaurant sales. In addition, unamortized
leasehold improvements relating to the Company's decision not to renew a
restaurant lease accounted for a small portion of the increase.
8
<PAGE>
General and administrative expenses increased as a percentage of sales to
20.6% in the first forty weeks of fiscal 1996 from 15.0% for the same period of
fiscal 1995. This increase was primarily due to expenses relating to marketing
research, advertising programs and new product research and development costs.
These increases were slightly offset by a decrease in other corporate overhead
expenses as part of the Company's continuing focus on controlling overhead
costs.
OTHER EXPENSES (INCOME). Interest income was $191,000 for the first forty
weeks of fiscal 1996 compared to $153,000 for the same period of fiscal 1995.
This increase resulted from investment of net proceeds from the Company's
September 1994 initial public offering.
PROVISION FOR INCOME TAXES. The effective income tax rate for the forty weeks
ended April 2, 1996 was 8.6% compared to an effective income tax rate of 12.5%
for the same period of fiscal 1995. Management estimated that the recorded
deferred tax assets may not be fully utilized, and accordingly established a
valuation reserve resulting in a tax provision of $60,000 for the forty weeks
ended April 2, 1996.
LIQUIDITY AND CAPITAL RESOURCES
Historically, the Company has financed its capital requirements through
cash flows from operations and the proceeds from its initial public offering in
September 1994.
For the forty weeks ended April 2, 1996 and April 4, 1995, the Company
invested $564,000 and $1,970,000, respectively, in property and equipment. The
investments were funded by cash from operations and proceeds from the Company's
initial public offering. Cash (used) provided from operating activities for the
forty weeks ended April 2, 1996 and April 4, 1995 was ($319,000) and $1,302,000
respectively.
The Company opened two restaurants and remodeled three restaurants in the
forty weeks ended April 2, 1996. Two restaurant remodels were completed in the
second quarter, with one remodel and two units opening in the first quarter.
In the second quarter of fiscal 1996, the Company obtained an unsecured
revolving line of credit for $600,000. The agreement requires the Company to
maintain certain covenants. Borrowings bear interest rates ranging from bank's
prime rate to the bank's prime rate plus 1/2% and the agreement expires
October 31, 1996. As of April 2, 1996, there were no borrowings under the line
of credit. The Company believes its capital needs in the near future can be
met with proceeds from its initial public offering and its available line of
credit.
SEASONALITY
The Company's restaurants have historically experienced higher average
weekly sales in the first and fourth fiscal quarters. Accordingly, operating
income margins and net income margins have been and are expected to continue to
be higher in each of those quarters than in the second and third quarters.
Furthermore, quarterly results have been, and are expected to continue to be,
substantially affected by the timing of new restaurant openings, in part because
of the Company's policy of expensing pre-opening costs. In addition, the first
quarter includes 16 weeks of operations, compared with 12 weeks for each of the
last three quarters. Consequently, consecutive quarter-to-quarter comparisons
of the Company's results of operations may not be meaningful, and results for
any quarter are not necessarily indicative of the actual results for a full
fiscal year.
9
<PAGE>
PART II. OTHER INFORMATION
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 have been filed during the period for which
this report is filed.
10
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
MACHEEZMO MOUSE RESTAURANTS, INC.
(Registrant)
Dated: 5/16/96 /s/ REX BIRD
--------------------------------------
Rex Bird
President, Chief Operating Officer and
Authorized Officer
11
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED BALANCE SHEETS OF MACHEEZMO MOUSE RESTAURANTS AND AS OF APRIL 2, 1996
AND THE RELATED STATEMENT OF OPERATIONS FOR THE FORTY WEEKS ENDED APRIL 4, 1996.
</LEGEND>
<CIK> 0000928065
<NAME> MACHEEZMO MOUSE RESTAURANTS INC
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> OTHER
<FISCAL-YEAR-END> JUL-2-1996
<PERIOD-START> JUN-28-1995
<PERIOD-END> APR-2-1996
<CASH> 571
<SECURITIES> 2,988
<RECEIVABLES> 73
<ALLOWANCES> 0
<INVENTORY> 143
<CURRENT-ASSETS> 3,429
<PP&E> 6,476
<DEPRECIATION> 2,078
<TOTAL-ASSETS> 8,477
<CURRENT-LIABILITIES> 598
<BONDS> 0
0
0
<COMMON> 10,145
<OTHER-SE> (2,439)
<TOTAL-LIABILITY-AND-EQUITY> 8,477
<SALES> 7,567
<TOTAL-REVENUES> 7,567
<CGS> 2,055
<TOTAL-COSTS> 8,450
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (692)
<INCOME-TAX> 60
<INCOME-CONTINUING> (752)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (752)
<EPS-PRIMARY> (.19)
<EPS-DILUTED> 0
</TABLE>
