<PAGE>
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 June 30, 1995
---------------------------------
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition from ___________________ to ________________________
Commission file number 0-4979
------------------
SQUARE INDUSTRIES, INC.
(Exact name of Registrant as specified in its Charter)
NEW YORK 13-2610905
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
921 Bergen Avenue, Jersey City, New Jersey 07306
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (201) 798-0090
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 12 months (or for such shorter period that the issuer was
required to file such reports), and (2) has been subject to filing requirements
for the past 90 days.
Yes X No
Shares of Common Stock outstanding at June 30, 1995: 1,166,356
<PAGE>
SQUARE INDUSTRIES, INC. AND SUBSIDIARIES
INDEX
PART I.
Page No.
--------
Consolidated Balance Sheets -
June 30, 1995 (unaudited) and December 31,
1994 (audited) 2-3
Consolidated Statements of Operations - for
the six and three months ended June 30, 1995
and 1994 (unaudited) 4
Consolidated Statements of Cash Flows for
the six months ended June 30, 1995 and 1994
(unaudited) 5-6
Notes to Consolidated Financial Statements 7-10
Management's Discussion and Analysis of Results of
Operations and Financial Condition 11-13
PART II.
Other Information 14
SIGNATURES 15
<PAGE>
SQUARE INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, 1995 December 31, 1994
(Unaudited) (Audited)
----------- ---------
ASSETS
Current Assets:
Cash $ 1,510,000 $ 1,226,000
Trade and other receivables 395,000 781,000
Prepaid expenses 1,850,000 1,660,000
Other current assets 498,000 555,000
Prepaid and refundable income taxes 437,000 353,000
----------- -----------
Total current assets 4,690,000 4,575,000
----------- -----------
Property, Equipment and Improvements, net 25,058,000 25,067,000
----------- -----------
Other Assets:
Deferred expenses (net of amortization) 2,092,000 890,000
Security deposits and other assets 2,128,000 1,932,000
----------- -----------
4,220,000 2,822,000
----------- -----------
$33,968,000 $32,464,000
=========== ===========
See accompanying notes to consolidated financial statements
<PAGE>
SQUARE INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, 1995 December 31, 1994
(Unaudited) (Audited)
----------- ---------
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 1,153,000 $ 830,000
Accrued expenses 4,410,000 4,400,000
Accrued local rent tax (Note 4) 1,220,000 1,189,000
Current portion of long-term debt (Note 2) 1,094,000 1,210,000
Other liabilities 394,000 479,000
------------ ------------
Total current liabilities 8,271,000 8,108,000
------------ ------------
Deferred Rent 2,721,000 2,433,000
------------ ------------
Long-Term Debt - less current portion (Note 2) 17,794,000 17,059,000
------------ ------------
Deferred Taxes 174,000 174,000
------------ ------------
Security Deposits - Customers 280,000 257,000
------------ ------------
Stockholders' Equity:
Common stock, $.01 par value;
authorized 2,000,000 shares;
issued, 1,218,389 shares and 1,205,689 shares 12,000 12,000
Common stock, subscribed 12,500 shares as
of December 31, 1994 -0- 119,000
Additional paid-in capital 3,278,000 3,158,000
Retained earnings 1,883,000 1,529,000
Less:
Treasury stock at cost, 52,033 shares as of
June 30, 1995 and 12,837 shares as of
December 31, 1994 (236,000) (59,000)
Notes receivable for common stock subscribed -0- (119,000)
Cumulative translation adjustment (209,000) (207,000)
------------ ------------
4,728,000 4,433,000
------------ ------------
$ 33,968,000 $ 32,464,000
============ ============
</TABLE>
See accompanying notes to consolidated financial statements
<PAGE>
SQUARE INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
For The Six Months Ended For The Three Months Ended
June 30, June 30,
------------------------- --------------------------
1995 1994 1995 1994
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Parking service revenue $30,704,000 $29,325,000 $15,372,000 $15,253,000
Service station revenue 1,971,000 1,943,000 1,012,000 1,027,000
---------- ---------- ---------- ----------
Total revenues 32,675,000 31,268,000 16,384,000 16,280,000
---------- ---------- ----------- -----------
Costs and expenses:
Cost of parking services 25,304,000 26,049,000 12,592,000 12,846,000
Operating costs - service station 2,026,000 1,972,000 1,051,000 1,038,000
General and administrative expenses 3,561,000 3,490,000 1,712,000 1,694,000
Provision for local rent tax (Note 4) 30,000 30,000 15,000 15,000
Interest 1,020,000 847,000 532,000 470,000
Write-off of assets -0- 478,000 -0- -0-
---------- ---------- ----------- -----------
Total costs and expenses 31,941,000 32,866,000 15,902,000 16,063,000
Earnings (Loss) from Parking and ---------- ---------- ----------- -----------
Service Station Operations 734,000 (1,598,000) 482,000 217,000
Provision (Benefit) For Income Taxes
(Note 6) 380,000 (540,000) 234,000 70,000
---------- ---------- ----------- -----------
Net Earnings (Loss) $ 354,000 $ (1,058,000) $ 248,000 $ 147,000
========== ============ =========== ===========
Earnings (Loss) Per Share (Note 5) $ 0.28 $ (0.89) $ 0.21 $ 0.12
========== ============ =========== ===========
Computation of Shares -
Weighted average of common stock
outstanding and subscribed (Note 5) 1,245,131 1,192,787 1,166,356 1,192,852
========== ============ =========== ===========
</TABLE>
See notes to consolidated financial statements
<PAGE>
SQUARE INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
For The Six Months Ended
June 30,
1995 1994
---- ----
<S> <C> <C>
Cash Flows From Operating Activities:
Net earnings (loss) $ 354,000 $(1,058,000)
Adjustments to reconcile net earnings (loss) to net cash provided by
(used in) operating activities:
Amortization of:
Deferred expenses 20,000 17,000
Lease acquisition costs 9,000 55,000
Excess of cost over fair market value
of net assets acquired -0- 103,000
Depreciation and amortization 789,000 849,000
Write-off of assets -0- 478,000
Equity adjustment for foreign currency translations (2,000) (23,000)
Increase (decrease) in cash from
changes in assets and liabilities:
Trade and other receivables 386,000 (285,000)
Prepaid expenses and other current assets (191,000) (570,000)
Prepaid and refundable income taxes (84,000) (367,000)
Deferred expenses, net (1,222,000) (11,000)
Security deposits and other assets (205,000) (105,000)
Accounts payable, accrued expenses,
accrued local rent tax and other liabilities 279,000 1,060,000
Deferred rent 288,000 (266,000)
Security deposits - customers 23,000 35,000
---------- ----------
Net cash provided by (used in) operating activities 444,000 (88,000)
---------- ----------
</TABLE>
<PAGE>
SQUARE INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
For The Six Months Ended
June 30,
1995 1994
--------- ---------
<S> <C> <C>
Cash Flows From Investing Activities:
Additions to land, buildings, equipment
and improvements $ (780,000) $ (560,000)
----------- -----------
Net cash used in investing activities (780,000) (560,000)
----------- -----------
Cash Flows From Financing Activities:
Proceeds from borrowings 1,700,000 2,665,000
Payments and current maturities on long-term debt (1,081,000) (1,551,000)
Proceeds from exercise of stock options and warrants 1,000 1,000
----------- -----------
Net cash provided by financing activities 620,000 1,115,000
----------- -----------
Net Increase in Cash 284,000 467,000
Cash, Beginning of Period 1,226,000 623,000
----------- -----------
Cash, End of Period $ 1,510,000 $ 1,090,000
=========== ===========
Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for:
Interest $ 1,005,000 $ 863,000
Income taxes, net of refunds received $ 574,000 $ (82,000)
</TABLE>
Supplemental Schedule of Noncash Financing Activities:
An officer/stockholder satisfied the balance of his note receivable to the
Company, including accrued interest of $57,637, which note had been issued in
connection with the exercise of a warrant to purchase shares of common stock by
transferring 39,196 shares of common stock to the Company. The market value of
the stock at the date of the transfer was $176,382. As a result, the Company
issued to the officer/stockholder 12,500 shares of common stock.
See accompanying notes to financial statements
<PAGE>
SQUARE INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1995
NOTE 1 - The accompanying consolidated balance sheet as of June 30, 1995 and
the consolidated statements of operations for the six and three months
ended June 30, 1995 and 1994 and the consolidated statements of cash
flows for the six months ended June 30, 1995 and 1994, respectively,
are unaudited, but in the opinion of the Company, all adjustments
(consisting of normal recurring accruals) necessary to present fairly
the results of operations for such periods have been made. The
financial statements should be read in conjunction with the Annual
Report on Form 10K of the Company, for the period ended December 31,
1994.
The Company changed, effective December 31, 1994, its fiscal year end
from the last day in February to December 31st. As a result, the
comparative 1994 financial statements have been restated to conform to
current period presentation.
The accompanying consolidated financial statements include the
accounts of a foreign subsidiary and all domestic subsidiaries. All
significant intercompany accounts and transactions have been
eliminated.
The results of operations for the six and three months ended June 30,
1995 are not necessarily indicative of the results to be expected for
the full year.
NOTE 2 - Long-term debt consisted of the following:
Interest Rate June 30, 1995
------------- -------------
Notes Payable 7.25% - 10% $ 1,284,000
Mortgages payable 7% - 11% 4,186,000
Bank Loan:
Facility I Prime + 2% 11,730,000
Facility II 11.35% 1,688,000
------------
18,888,000
Less current portion 1,094,000
------------
$17,794,000
============
<PAGE>
NOTE 2 - (continued)
Facility I, as last amended on October 11, 1994, provides for a line
of credit of $12,800,000, and is subject to the aggregate face amount
of outstanding letters of credit plus unpaid drawings not exceeding
$1,500,000. All outstanding amounts under Facility I, mature May 31,
1997. On October 11, 1994, the Facility I interest rate was adjusted
to prime + 2%, a 1/2% increase in the rate which was effective as of
July 1, 1994, an increase from the previous rate of prime + 1%. The
prime rate was 9% at June 30, 1995.
Facility II is a term loan to be paid in consecutive quarterly
payments. The amount of the quarterly payments is $225,425, with the
last payment to be made on May 31, 1997. The Company may elect, with
the consent of the bank, to convert all or part (but not less than
$1,000,000) of the Facility II term loan into a Designated Rate Loan,
meaning a term loan for a period chosen by the Company in excess of
one year and bearing interest at a fixed-rate then designated by the
bank.
Certain subsidiaries of the Company periodically acquire land/or
buildings with a view to their future use in whole or in part as
parking facilities. The properties are generally purchased subject to
long-term mortgages. The mortgages vary in their payment terms and
interest rates, some requiring only the payment of interest during the
first five years.
The mortgages payable are collateralized by the underlying assets
which have a book value of $5,781,400. The two facility loans are
collateralized by the stock of subsidiaries of the Company, except
those whose stock may not be pledged because of prohibitions in leases
and mortgages.
Debt covenants, under the Credit Agreement as amended, include a
limitation on indebtedness under mortgage obligations and financial
covenants as to maintenance of minimum net worth, total liabilities to
net worth and operating cash flow ratios. The covenants were amended
as of October 11, 1994. Prior modifications of the covenants had been
made as of June 14, 1994, June 14, 1993, and June 4, 1992. The
modifications were made effective, respectively, as of August 31,
1994, February 28, 1994, February 28, 1993, and May 31, 1992 and
thereby cured the prior defaults by the Company and permitted the
Company to be in compliance with the financial covenants as of the
effective date and for the period through the date hereof.
<PAGE>
Aggregate maturities on long-term debt are as follows:
Year Ending June 30,
1996 $ 1,094,000
1997 12,587,000
1998 24,000
1999 1,063,000
2000 3,837,000
Remainder 283,000
----------
$18,888,000
===========
NOTE 3 - FOREIGN OPERATIONS (CANADA)
Summarized information relating to the Canadian operation is as
follows:
June 30, 1995 December 31, 1994
------------- -----------------
Total assets $594,000 $589,000
Total liabilities 1,346,000 1,231,000
Deficiency in assets (752,000) (642,000)
For the six-month periods ended June 30, 1995 and June 30, 1994, net
loss for the Canadian operation was $108,000 and $168,000,
respectively.
NOTE 4 - The Company received notices of determination from a municipal local
authority for commercial rent tax which relate to the period June 1,
1978 through May 31, 1987 assessing the Company, net of payments, an
aggregate of $907,005. The Company believes that the provision, which
covers these assessments, possible future assessments, and related
expenses through June 30, 1995, is adequate.
NOTE 5 - EARNINGS PER SHARE
Earnings (loss) per share has been computed using the weighted average
number of shares of common stock outstanding and subscribed and the
dilutive effect, if any, of common stock equivalents outstanding.
Common stock equivalents were not included in the computation of loss
per share for the six months ended June 30, 1994 since their effect
was anti-dilutive.
NOTE 6 - INCOME TAXES
The provision for income taxes of $380,000 for the six month period
ended June 30, 1995 is based on the effective tax rate expected for
<PAGE>
the year and includes (i) federal income taxes, (ii) income taxes of
state and local jurisdictions for which the Company's operations were
profitable and for which no net operating loss benefit is available
and (iii) minimum corporate taxes for certain subsidiaries. No changes
have been made to the deferred tax asset valuation allowances since
Management is not able to conclude that realization of these deferred
tax assets is more likely than not as a result of the Company's
earnings history. Reductions to the valuation allowance will be
recorded when, in the opinion of management, the Company's ability to
generate taxable income for a period of time is more certain.
The income tax benefit of $540,000 for the six month period ended June
30, 1994 reflects the benefit applicable to the loss for the period
less minimum corporate taxes for certain subsidiaries.
NOTE 7 - CONTINGENCIES
Litigation:
Various lawsuits against the Company have arisen in the course of the
Company's business. In certain of these matters, large and/or
indeterminate amounts are sought. In the opinion of the Company, any
uninsured ultimate liability which could result from such litigation
would not have a material adverse effect on the Company's financial
position or the results of its operations.
Letters of Credit:
As of June 30, 1995, the Company's contingent debt amounted to
approximately $1,025,500 under standby Letters of Credit issued
pursuant to terms of its line of credit (Facility I).
NOTE 8 WRITE-OFF OF ASSETS
During the six months ended June 30, 1994, the Company wrote off
leasehold acquisition costs, deferred expenses, and other
miscellaneous charges relating to certain locations.
<PAGE>
SQUARE INDUSTRIES, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS
AND FINANCIAL CONDITION
Results of Operations
---------------------
The improved operating results recorded for the 1994 fiscal year (the 10 months
ended December 31, 1994) continued into the current year. Parking service
revenues for the six months ended June 30, 1995 (the "1995 Six-Month Period")
and the three months ended June 30, 1995 (the "1995 Three-Month Period") were
greater by $1,379,000 (4.7%) and $119,000 (0.8%) than those for the six months
ended June 30, 1994 (the "1994 Six-Month Period) and the three months ended June
30, 1994 (the "1994 Three-Month Period"), respectively. The principal reason for
the continued improvement was the increased patronage (the aggregate parking
capacity was approximately the same as of June 30, 1995 and June 30, 1994)
largely due to mild winter weather in the regions in which the Company operates
as compared with one of the most severe winters in the Company's history in 1994
which caused a sharp curtailment of traffic near the Company's parking
locations.
The increase in revenues was achieved while parking operating costs were reduced
by $745,000 (2.9%) between the six-month comparative periods and $254,000 (2.0%)
between the three-month comparative periods. The percentages of parking
revenues, represented by such costs, were reduced from 88.8% to 82.4% between
the six-month comparative periods and from 84.2% to 81.9% between the
three-month comparative periods. The lower costs and improved percentages were
principally due to a net reduction of four in the number of parking locations
operated by the Company, including termination of several unprofitable locations
which were the source of the $478,000 of asset write-offs in the 1994 Six-Month
Period, partially offset by a modest increase in labor costs resulting from a
new labor agreement the Company executed during the latter part of the 1995
Six-Month Period. Another labor agreement is expected to be executed by December
31, 1995 and to result in a further modest increase in labor costs.
The Company's gasoline station operation remained marginal due to the intense
competition which adversely affects the industry and the area in which the
Company's station is located. Operation of the station produced losses for the
1995 and 1994 Six-Month Periods of ($55,000) and ($29,000), respectively,
despite a $28,000 increase in revenues between the two periods and a $15,000
revenue reduction and losses for the 1995 and 1994 Three-Month Periods of
($39,000) and ($11,000), respectively. The gasoline station results reflect the
higher gasoline and oil prices.
General and administrative expenses increased by only $71,000, or 2.0% between
the six-month comparative periods and $18,000 (1.1%) between the three-month
comparative periods. The slight increases reflect principally modest increases
in salaries and professional fees, partially offset by reductions due to the
fewer locations under supervision and operating economies. The costs as a
<PAGE>
percentage of parking revenues (gasoline station operations require
insignificant amounts of such expenses) were substantially the same -- a
decrease from 11.9% to 11.6% for the six-month comparative periods and 11.1% for
each of the three-month comparative periods.
The increases in interest expense of $173,000 (20.4%) and $62,000 (13.2%),
respectively, between the six-month and three-month comparative periods were
primarily the result of the higher interest rates caused by both increases in
the rate provided by the amendments effected in June and October 1994 to the
Company's credit facility and increases in the prime rate.
The comparatively large provisions for income taxes of $380,000 (51.8%) for the
1995 Six-Month Period and $234,000 (48.5%) for the 1995 Three-Month Period as
compared with a ($540,000) (33.8%) benefit for the 1994 Six-Month Period and a
$70,000 (32.3%) for the 1994 Three-Month Period were the result of (i) the
exclusion of the approximately $108,000 loss for the 1995 Six-Month Period and
the approximately $55,000 loss for the 1995 Three-Month Period suffered by the
Company's Canadian operations in the determination of the provision for federal
income taxes, and (ii) minimum corporate taxes imposed by the States of New
York, Pennsylvania and New Jersey and the City of New York, and, with respect to
the 1994 Six-Month Period, also the loss for the period partially offset by the
foregoing minimum corporate taxes.
Liquidity and Capital Resources
-------------------------------
As of June 30, 1995, the Company had a slight increase in its working capital
deficit ($3,581,000) from the working capital deficit ($3,533,000) as of
December 31,1994.
The Company's Credit Agreement with its bank lender was amended on June 13,
1994, effective as of February 28, 1994, to extend the maturity of the credit
facility from June 30, 1994 to June 30, 1995, increase the interest rate as of
July 31, 1994 by 1/2% per annum, modify the financial covenants retroactive to
December 1, 1993 and provide for the payment to the lender of a $50,000 fee. The
retroactive modification of the covenants permitted the Company to be in
compliance with the covenants as of February 28, 1994 and through June 13, 1994.
On October 11, 1994, the agreement was further amended to, among other things,
extend the maturity of the facility to May 31, 1997, increase the interest rate
as of October 11, 1994 to prime plus 2%, modify certain financial covenants
retroactive to August 31, 1994, and provide for the payment of an additional
$50,000 fee to the lender. The covenant modifications permitted the Company to
comply with the covenants as of August 31, 1994 through the date hereof.
Operating activities provided net cash of $444,000 for the six months ended June
30, 1995 as compared to the use of cash in the net amount of ($88,000) in the
1994 Six-Month Period from such activities. The principal causes for the
difference are the materially better operating results, faster payment of
receivables, and reduced amounts of prepaid expenses and prepaid income taxes
for the 1995 Six-Month Period due to consolidation of certain subsidiaries and
<PAGE>
overpayment of taxes in prior periods, partially offset by a material increase
for the 1995 Six-Month Period in deferred expenses (net), primarily due to
adjustments of rents and the $478,000 writeoff of assets in the 1994 Six-Month
Period.
Cash used in investing activities, consisting of additions to land, buildings,
equipment and improvements amounted to $780,000 net for the 1995 Six-Month
Period, $220,000 more than amounts expended or accrued during the 1994 Six-Month
Period for this purpose. The Company anticipates capital expenditures of not
more than $1,500,000 for the year ending December 31, 1995 to be financed from
the Company's operations, borrowings and joint ventures with equity
co-venturers.
The Company derived net cash from financing activities of $620,000 and
$1,115,000, respectively, during the 1995 Six-Month Period and the 1994
Six-Month Period, with the difference resulting from lesser borrowings under the
credit facility offset partially by lower loan payments during the 1995
Six-Month Period.
As a result of the foregoing, the Company increased its cash balances by
$284,000 and $467,000 for the 1995 Six-Month Period and the 1994 Six-Month
Period, respectively.
As of August 7, 1995, the Company had borrowed the full amount under its line of
credit. In anticipation of the lower revenues which are generally experienced by
the Company's operations during the months of July and August, the Company
entered into agreements with Messrs. Lowell Harwood, Chairman of the Board, and
Sanford Harwood, Assistant Chairman of the Board of Directors and Secretary of
the Company, pursuant to which each agreed to make available for working capital
purposes to the Company $350,000, or an aggregate of $700,000, with the amounts
to be extended to be made equally by each, to bear interest at the rate the
Company pays on loans from its principal bank lender (currently NatWest USA --
prime plus 2%) and to be payable on demand. In July 1995 the Company borrowed an
aggregate of $500,000 under the agreements, all of which was outstanding as of
August 7, 1995. The Company anticipates that the loans will be repaid in full by
December 31, 1995. The Company believes that the funds which are available from
time to time under its loan facilities, additional mortgage loans with respect
to properties acquired or developed, and funds generated from its operations
will be sufficient to finance its capital and operational requirements for the
12 months ended June 30, 1996.
<PAGE>
PART II--OTHER INFORMATION
Item 6. --Exhibits and Report on Form 8-K
(a) Exhibits
27. Financial Data Schedule
(b) No reports on Form 8-K have been filed during the quarter ended
June 30, 1995.
<PAGE>
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.
SQUARE INDUSTRIES, INC.
S/ Sanford Harwood
------------------
Sanford Harwood
Assistant Chairman
S/ Marvin Fruchtman
-------------------
Marvin Fruchtman
Treasurer and
Chief Financial Officer
Dated: August 14, 1995
<TABLE> <S> <C>
<ARTICLE> 5
<NAME> SQUARE INDUSTRIES, INC.
<CIK> 0000093134
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> $1,510,000
<SECURITIES> 0
<RECEIVABLES> 395,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 4,690,000
<PP&E> 25,058,000
<DEPRECIATION> 0
<TOTAL-ASSETS> 33,968,000
<CURRENT-LIABILITIES> 8,271,000
<BONDS> 0
<COMMON> 12,000
0
0
<OTHER-SE> 4,716,000
<TOTAL-LIABILITY-AND-EQUITY> 33,968,000
<SALES> 0
<TOTAL-REVENUES> 32,675,000
<CGS> 0
<TOTAL-COSTS> 27,330,000
<OTHER-EXPENSES> 3,591,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,020,000
<INCOME-PRETAX> 734,000
<INCOME-TAX> 380,000
<INCOME-CONTINUING> 354,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 354,000
<EPS-PRIMARY> $0.28
<EPS-DILUTED> $0.28
</TABLE>
