<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 30, 1997
-----------------------------------
Commission File Number 0-25428
----------------------
MEADOW VALLEY CORPORATION
- -------------------------------------------------------------------------------
(Exact Name of registrant as specified in its charter)
NEVADA 88-0328443
- --------------------------------------------------------------------------------
(State or other Jurisdiction of (I.R.S.Employer Identification Number)
incorporation or organization)
4411 South 40th Street, Suite D-11, Phoenix, AZ 85040
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(602) 437-5400
- --------------------------------------------------------------------------------
(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 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 X No
--------- _______
Number of shares outstanding of the issuer's common stock:
Class Outstanding at October 31, 1997
----- -------------------------------
Common Stock, $.001 par value 3,601,250 shares
<PAGE>
MEADOW VALLEY CORPORATION
INDEX
REPORT ON FORM 10-Q
FOR THE QUARTER ENDED SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION Page
Number
------
Item 1. Financial Statements
<S> <C>
Condensed Consolidated Statements of Operations -
Nine Months Ended September 30, 1997 and
September 30, 1996 3
Condensed Consolidated Statements of Operations -
Three Months Ended September 30, 1997 and
September 30, 1996 4
Condensed Consolidated Balance Sheets -
As of September 30, 1997 and December 31, 1996 5
Condensed Consolidated Statements of Cash Flows -
Nine Months Ended September 30, 1997 and
September 30, 1996 6
Notes to Condensed Consolidated Financial Statements 7-8
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations 9-11
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 12
</TABLE>
2
<PAGE>
MEADOW VALLEY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
----------------------------
1997 1996
------------ ------------
<S> <C> <C>
(UNAUDITED) (UNAUDITED)
Contract revenues........................... $ 103,132,598 $ 98,670,783
Cost of contract revenues................... 97,518,432 95,848,306
------------- ------------
Gross profit................................ 5,614,166 2,822,477
General and administrative expenses......... 3,913,567 2,095,156
------------- ------------
Income from operations...................... 1,700,599 727,321
------------- ------------
Other income (expense):
Interest income............................. 449,336 492,200
Interest expense............................ (476,286) (433,434)
Other income................................ 10,418 70,926
------------- ------------
(16,532) 129,692
------------- ------------
Income before income taxes.................. 1,684,067 857,013
Income taxes................................ 650,000 317,095
------------- ------------
Net income.................................. $ 1,034,067 $ 539,918
============= ============
Net income per share........................ $ .29 $ .15
============= ============
Weighted average common shares outstanding.. 3,601,250 3,601,250
============= ============
</TABLE>
3
<PAGE>
MEADOW VALLEY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
THREE MONTHS ENDED
SEPTEMBER 30,
---------------------------
1997 1996
------------ ------------
<S> <C> <C>
(UNAUDITED) (UNAUDITED)
Contract revenues........................... $ 42,262,154 $37,604,862
Cost of contract revenues................... 39,973,460 36,243,175
------------ -----------
Gross profit................................ 2,288,694 1,361,687
General and administrative expenses......... 1,435,612 817,833
------------ -----------
Income from operations...................... 853,082 543,854
------------ -----------
Other income (expense):
Interest income............................. 191,776 180,953
Interest expense............................ (175,272) (167,590)
Other income (expense)...................... (5,258) 28,921
------------ -----------
11,246 42,284
------------ -----------
Income before income taxes.................. 864,328 586,138
Income taxes................................ 322,000 216,872
------------ -----------
Net income.................................. $ 542,328 $ 369,266
============ ===========
Net income per share........................ $ .15 $ .10
============ ===========
Weighted average common shares outstanding.. 3,601,250 3,601,250
============ ===========
</TABLE>
4
<PAGE>
MEADOW VALLEY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
1997 1996 *
--------------- ------------
<S> <C> <C>
Assets: (UNAUDITED)
Current Assets:
Cash and cash equivalents..................................................... $ 3,881,619 $ 1,440,519
Restricted cash............................................................... 1,311,115 1,415,577
Accounts receivable........................................................... 22,524,289 26,861,458
Prepaid expenses and other.................................................... 746,432 836,086
Notes receivable - related party.............................................. 257,575 257,575
Notes receivable - other...................................................... 1,930 1,855
Costs and estimated earnings in excess of billings on
uncompleted contracts........................................................ 6,544,053 3,726,328
------------ ------------
Total Current Assets.................................................. 35,267,013 34,539,398
Property and equipment, net........................................................ 8,728,499 5,278,390
Refundable deposits................................................................ 157,466 247,740
Notes receivable - other........................................................... 209,499 210,602
Goodwill, net...................................................................... 1,760,828 1,820,850
Tradename, net..................................................................... 15,221 24,354
------------ ------------
Total Assets........................................................... $46,138,526 $42,121,334
============ ============
Liabilities and Stockholders' Equity:
Current Liabilities:
Notes payable - related party................................................. $ 500,000 $ 500,000
Notes payable - other......................................................... 548,662 266,220
Obligations under capital leases.............................................. 272,797 254,364
Accounts payable.............................................................. 16,906,622 19,629,807
Accrued liabilities........................................................... 2,144,460 1,777,334
Billings in excess of costs and estimated earnings on
uncompleted contracts........................................................ 7,611,993 3,372,853
Income tax payable............................................................ 201,966 -
------------ ------------
Total Current Liabilities.............................................. 28,186,500 25,800,578
Deferred income taxes.............................................................. 12,610 12,610
Notes payable - related party...................................................... 3,000,000 3,000,000
Notes payable - other.............................................................. 1,699,725 987,467
Obligations under capital leases................................................... 528,855 643,910
------------ ------------
Total Liabilities...................................................... 33,427,690 30,444,565
------------ ------------
Stockholders' Equity:
Preferred stock - $.001 par value; 1,000,000 shares
authorized, none issued and outstanding...................................... - -
Common stock - $.001 par value; 15,000,000 shares
authorized, 3,601,250 issued and outstanding ................................ 3,601 3,601
Additional paid-in capital.................................................... 10,943,569 10,943,569
Capital adjustment............................................................ (799,147) (799,147)
Retained earnings............................................................. 2,562,813 1,528,746
------------ ------------
Total Stockholders' Equity............................................. 12,710,836 11,676,769
------------ ------------
Total Liabilities and Stockholders' Equity............................. $46,138,526 $42,121,334
============ ============
</TABLE>
* Derived from audited financial statements
5
<PAGE>
MEADOW VALLEY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
----------------------------
1997 1996
------------- ------------
Increase (Decrease) in Cash and Cash Equivalents: (UNAUDITED) (UNAUDITED)
<S> <C> <C>
Cash flows from operating activities:
Cash received from customers................................ $ 108,860,735 $ 87,478,931
Cash paid to suppliers and employees........................ (103,420,849) (88,660,031)
Interest received........................................... 481,873 509,129
Interest paid............................................... (176,476) (145,991)
Income taxes paid........................................... (300) (907,212)
------------- -------------
Net cash provided by (used in) operating activities.. 5,744,983 (1,725,174)
------------- -------------
Cash flows from investing activities:
Decrease in restricted cash................................. 104,462 741,522
Purchase of AKR Contracting tradename....................... - (36,531)
Collection of notes receivable - other...................... 1,028 435
Proceeds from sale of property and equipment................ 181,574 97,008
Proceeds from sale of rental property....................... - 16,866
Purchase of property and equipment.......................... (3,084,171) (1,592,809)
------------- -------------
Net cash used in investing activities................ (2,797,107) (773,509)
------------- -------------
Cash flows from financing activities:
Repayment of notes payable - other.......................... (293,448) (70,087)
Repayment of capital lease obligations...................... (213,328) (73,460)
------------- -------------
Net cash used in financing activities................ (506,776) (143,547)
------------- -------------
Net increase (decrease) in cash and cash equivalents........... 2,441,100 (2,642,230)
Cash and cash equivalents at beginning of period............... 1,440,519 5,357,904
------------- -------------
Cash and cash equivalents at end of period..................... $ 3,881,619 $ 2,715,674
============= =============
</TABLE>
6
<PAGE>
MEADOW VALLEY CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Nature of Corporation:
Meadow Valley Corporation (the "Company") was organized under the laws of
the State of Nevada on September 15, 1994. The principal business purpose
of the Company is to operate as the holding company of Meadow Valley
Contractors, Inc. (MVC), Ready Mix, Inc. (RMI) and Prestressed Products
Incorporated (PPI). MVC is a general contractor, primarily engaged in
the construction of structural concrete highway bridges and overpasses, and
the paving of highways and airport runways in the states of Nevada,
Arizona, Utah and New Mexico. MVC was acquired by the Company as of
October 1, 1994. RMI is a producer and retailer of ready-mix concrete
operating in the Las Vegas metropolitan area. PPI manufactures and erects
prestressed products primarily in the Southern Nevada area.
2. Presentation of Interim Information:
The amounts included in this report are unaudited; however, in the opinion
of management, all adjustments necessary for a fair statement of results
for the stated periods have been included. These adjustments are of a
normal recurring nature. Certain information and footnote disclosures
normally included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed or omitted.
It is suggested that these condensed consolidated financial statements be
read in conjunction with the audited financial statements and notes thereto
included in the Company's Annual Form 10-K under the Securities Exchange
Act of 1934 as filed with the Securities and Exchange Commission. The
results of operations for the nine months ended September 30, 1997 are not
necessarily indicative of operating results for the entire year.
3. Notes Payable- other:
Summary of third quarter additions to Notes payable - other and their
balance at September 30, 1997:
6.78% note payable, with monthly payments of $1,707, due 8/27/01
collateralized by equipment................................... $ 70,290
6.60% note payable, with monthly payments of $2,378, due 9/02/01
collateralized by equipment................................... 100,100
9.00% note payable, with monthly payments of $3,290, due 8/08/02
collateralized by equipment................................... 156,389
7.30% note payable, with monthly payments of $4,071, due 7/01/01
collateralized by equipment................................... 159,841
-------
486,620
Less: current maturities included in current liabilities...... 109,475
-------
$377,145
========
Following are maturities of long-term debt for each of the next 5 years:
1998..................................................... $109,475
1999..................................................... 116,517
2000..................................................... 124,126
2001..................................................... 104,649
2002..................................................... 31,853
--------
$486,620
========
7
<PAGE>
MEADOW VALLEY CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
4. Lines of Credit:
At September 30, 1997, the Company had available from a commercial bank a
$2,000,000 operating line of credit ("line of credit") at an interest rate
of the commercial bank's prime plus .50%, and a $2,000,000 operating line
of credit at an interest rate of the commercial bank's prime plus .25%. At
September 30, 1997, nothing had been drawn on either of the lines of
credit. Under the lines of credit, the Company is required to maintain
certain levels of working capital, to promptly pay all its obligations and
is precluded from conveying, selling or leasing all or substantially all of
its assets. At September 30, 1997, the Company was in full compliance will
all such covenants. The lines of credit expire September 15, 1998.
5. Commitments:
During the quarter ended September 30, 1997 the Company purchased
construction vehicles under capital leases expiring in the year 2002. The
assets and liabilities under capital leases are recorded at the lower of
the present value of the minimum lease payments or the fair value of the
assets. The assets are depreciated over their related lease terms.
Minimum future lease payments under the above mentioned capital leases as
of September 30, 1997 for each of the next five years and in aggregate
are:
<TABLE>
<CAPTION>
Year Ended September 30, 1997 Amount
--------------------------------------------- --------
<S> <C>
1998......................................... $ 20,583
1999......................................... 19,454
2000......................................... 18,327
2001......................................... 15,787
2002......................................... 4,542
--------
Total minimum lease payments................. 78,693
Less: Executory costs........................ (2,495)
--------
Net minimum lease payments................... 76,198
Less: Amount representing interest........... (13,214)
--------
Present value of net minimum lease payments.. $ 62,984
========
</TABLE>
6. Subsequent Events:
During October 1997, the Company executed five-year employment agreements
with three of its executive officers that provide for an annual salary and
various other benefits and incentives. The total commitment, excluding
benefits and incentives amount to $1,525,000.
8
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
GENERAL
The following is management's discussion and analysis of certain
significant factors affecting the Company's financial position and operating
results during the periods included in the accompanying condensed consolidated
financial statements.
Except for the historical information contained herein, the matters set
forth in this report are forward-looking statements within the meaning of the
"safe harbor" provisions of the Private Securities Litigation Reform Act of
1995. These forward-looking statements are subject to risks and uncertainties
that may cause actual results to differ materially. The Company disclaims any
intent or obligation to update these forward-looking statements.
RESULTS OF OPERATIONS
The following table sets forth, for the nine months and the three months
ended September 30, 1997 and 1996, certain items derived from the Company's
Condensed Consolidated Statements of Operations expressed as a percentage of
contract revenue.
<TABLE>
<CAPTION>
Nine months ended Three months ended
September 30, September 30,
--------------- ---------------
1997 1996 1997 1996
--------------- ---------------
<S> <C> <C> <C> <C>
Contract revenue 100.0% 100.0% 100.0% 100.0%
Gross profit 5.4 2.9 5.4 3.6
General and administrative expense 3.8 2.1 3.4 2.2
Interest income .4 .4 .4 .4
Interest expense .5 .4 .4 .4
Income before income taxes 1.6 .9 2.0 1.6
Net income after income taxes 1.0 .5 1.3 1.0
</TABLE>
NINE MONTHS ENDED SEPTEMBER 30, 1997 COMPARED TO NINE MONTHS ENDED SEPTEMBER
30, 1996
Revenue and Backlog. Revenue for the nine months ended September 30, 1997
("interim 1997") was $103.1 million compared to $98.7 million for the nine
months ended September 30, 1996 ("interim 1996"). The increase in revenue was
the result of slight reduction in contract revenue of $3.1 million offset in
part by a $7.3 million increase in revenue generated from construction materials
production and manufacturing sold to non-affiliates. Backlog increased 41% to
approximately $141 million at September 30, 1997, from approximately $100
million at September 30, 1996. Revenue is impacted in any one period by the
backlog at the beginning of the period.
Gross Profit. As a percentage of revenue, consolidated gross profit margin
increased from 2.9% for interim 1996 to 5.4% for interim 1997. The increase in
MVC's gross profit margin was the result of lower gross profit margins in
interim 1996 due to (i) erratic weather conditions that delayed the completion
of a project and (ii) cost overruns. Gross profit margins are affected by a
variety of factors including construction delays and difficulties due to weather
conditions, availability of materials, the timing of work performed by other
subcontractors and the physical and geological condition of the construction
site.
General and Administrative. General and administrative expenses increased
from $2,095,156 for interim 1996 to $3,913,567 for interim 1997. The increase
results primarily from expenses of $1,240,388 associated with the Company's
expansion in the Utah market and the Company's wholly-owned ready-mix concrete
and
9
<PAGE>
precast/prestressed products subsidiaries which commenced operations in early
1997. The remainder of the increase was $337,512 in corporate labor and a
variety of costs including costs in excess of $35,000 related to enhancements in
the safety plan, $59,000 of expenses related to non-recurring consulting studies
and $87,000 related to increased corporate travel.
Interest Income and Expense. Interest income for interim 1997 decreased to
$449,336 from $492,200 for interim 1996 due to a decrease in cash reserves
resulting primarily from the expansion into the production and manufacturing of
construction materials and the purchase of construction equipment. Interest
expense increased for interim 1997 to $476,286 from $433,434 for interim 1996
due to additional debt incurred related to the purchase of land, crushing,
screening and conveying equipment and construction vehicles and equipment.
Net Income After Income Taxes. Net income after income taxes was
$1,034,067 for interim 1997 as compared to $539,918 for interim 1996. The
increase, offset somewhat by increased general and administrative expenses
discussed above, resulted from higher interim 1997 gross profit margins.
THREE MONTHS ENDED SEPTEMBER 30, 1997 COMPARED TO THREE MONTHS ENDED SEPTEMBER
30, 1996
Revenue and Backlog. Revenue for the three months ended September 30, 1997
("interim 1997") was $42.3 million compared to $37.6 million for the three
months ended September 30, 1996 ("interim 1996"). The slight increase in
revenue was the result of a $.6 million increase in contract revenue and a $4.0
million increase in revenue generated from construction materials production and
manufacturing sold to non-affiliates. Backlog increased 41% to approximately
$141 million at September 30, 1997, from approximately $100 million at
September 30, 1996. Revenue is impacted in any one period by the backlog at the
beginning of the period.
Gross Profit. As a percentage of revenue, consolidated gross profit margin
increased from 3.6% for interim 1996 to 5.4% for interim 1997. While enhanced
somewhat by the construction materials production and manufacturing gross profit
margin, the increase in gross profit margin was primarily the result of MVC's
lower gross profit margins in interim 1996 due to (i) erratic weather conditions
that delayed the completion of a project and (ii) cost overruns. The gross
profit margins are affected by a variety of factors including construction
delays and difficulties due to weather conditions, availability of materials,
the timing of work performed by other subcontractors and the physical and
geological condition of the construction site.
General and Administrative. General and administrative expenses increased
from $817,833 for interim 1996 to $1,435,612 for interim 1997. The increase
results primarily from expenses of $584,761 associated with the Company's
expansion in the Utah market and the Company's wholly-owned ready-mix concrete
and precast/prestressed products subsidiaries which commenced operations in
early 1997.
Interest Income and Expense. Interest income for interim 1997 increased to
$191,776 from $180,953 for interim 1996 due to a increase in cash reserves
resulting primarily from increase profit margins. Interest expense increased
for interim 1997 to $175,272 from $167,590 for interim 1996 due to additional
debt incurred related to the purchase of land, crushing, screening and conveying
equipment and construction vehicles and equipment offset, in part, by a decrease
in interest expense related to interest bearing retention payables.
Net Income After Income Taxes. Net income after income taxes was $542,328
for interim 1997 as compared to $369,266 for interim 1996. The increase, offset
somewhat by increased general and administrative expenses discussed above,
resulted from higher interim 1997 gross profit margins.
LIQUIDITY AND CAPITAL RESOURCES
The Company's primary need for capital has been to finance expansion and
capital expenditures. Historically, the Company's primary source of cash has
been from operations. Revenue growth has required additional capital to finance
expanded receivables, retentions and capital expenditures and address
fluctuations in the work-in-process billing cycle.
10
<PAGE>
The following table sets forth for the nine months ended September 30, 1997
and 1996, certain items from the condensed consolidated statements of cash
flows.
<TABLE>
<CAPTION>
Nine months ended
September 30,
----------------------------
1997 1996
----------- -----------
<S> <C> <C>
Cash Flows Provided by (Used in) Operating Activities $ 5,744,983 $(1,725,174)
Cash Flows (Used) in Investing Activities (2,797,107) (773,509)
Cash Flows (Used) in Financing Activities (506,776) (143,547)
</TABLE>
Although the Company expects increased profitability as operations
improve, cash is required to finance expansion, contract retention receivables
and accounts receivable. In general, cash flows from projects are negative
until a project is approximately 15% complete, then become positive during the
middle approximately 70% of the project, and again become negative during the
final approximately 15% of the project.
Accounts receivable and net billings in excess of costs ("costs") at
September 30, 1997, were approximately $21.5 million versus $26.9 million at
September 30, 1996 a decrease of 25%. The Company contracts primarily with
public sector customers, which it believes significantly reduces exposure to
conventional bad debts. Accordingly, based on the Company's history of no
material delays in the collection of accounts receivable, no material allowance
was established for potentially uncollectible accounts at September 30, 1997.
Cash used by investing activities during interim 1997 was approximately
$2,800,000, and included the receipt of retentions held in a restricted cash
account of approximately $100,000 and proceeds from the sale of property and
equipment of approximately $200,000, offset by $3,100,000 in equipment
purchases. Cash used by investing activities during interim 1996 was
approximately $800,000, and included the receipt of retentions held in a
restricted cash account of approximately $700,000 and proceeds from the sale of
property and equipment of approximately $100,000, offset by $1,600,000 in
equipment purchases.
Cash used in financing activities during interim 1997 included
approximately $213,000 repayment of capital lease obligations and $293,000
repayment of notes payable. Cash used in financing activities during interim
1996 included approximately $73,000 repayment of capital lease obligations and
$70,000 repayment of notes payable.
The Company currently has available from a commercial bank a $2,000,000
operating line of credit ("line of credit") at an interest rate of the
commercial bank's prime plus .50%, and a $2,000,000 operating line of credit at
an interest rate of the commercial bank's prime plus .25%. At September 30,
1997, nothing had been drawn on either of the lines of credit.
The Company anticipates financing approximately $500,000 of the $1.4
million already paid in connection with the construction of the existing ready-
mix batch plant and building. It is anticipated that a substantial portion of
the costs of a planned second ready-mix plant and related equipment will be
financed through operating leases and that a second site may not require the
purchase of land. Currently, the Company is leasing 40 ready-mix trucks with
estimated annual lease payments of $885,000.
Management believes that the Company's cash reserves, together with
its lines of credit, its capacity to arrange capital and operating leases and
its anticipated cash flow from operations, are sufficient to fund its cash
requirements for the next 12 months and that the Company's working capital will
be adequate to fund its short term and long term requirements.
11
<PAGE>
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(b) Reports on Form 8-K
The Company did not file any reports on Form 8-K during the
three months ended September 30, 1997.
12
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act as of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MEADOW VALLEY CORPORATION
(Registrant)
By /s/ Gary W. Burnell
---------------------------------
Gary W. Burnell
Chief Financial Officer
By /s/ Julie L. Bergo
---------------------------------
Julie L. Bergo
Principal Accounting Officer
13
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM MEADOW
VALLEY CORP & SUB AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 5,192,734
<SECURITIES> 0
<RECEIVABLES> 29,325,917
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 35,267,013
<PP&E> 9,594,170
<DEPRECIATION> 865,671
<TOTAL-ASSETS> 46,138,526
<CURRENT-LIABILITIES> 28,186,500
<BONDS> 6,550,039
0
0
<COMMON> 3,601
<OTHER-SE> 12,707,235
<TOTAL-LIABILITY-AND-EQUITY> 46,138,526
<SALES> 103,132,598
<TOTAL-REVENUES> 103,132,598
<CGS> 97,518,432
<TOTAL-COSTS> 97,518,432
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 476,286
<INCOME-PRETAX> 1,684,067
<INCOME-TAX> 650,000
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,034,067
<EPS-PRIMARY> .29
<EPS-DILUTED> 0
</TABLE>
