UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
FOR THE PERIOD ENDED NOVEMBER 30, 1999
OR
[ ] Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
COMMISSION FILE NUMBER 0-26774
TST/IMPRESO, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 75-1517936
--------------------------------- -------------------
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
652 SOUTHWESTERN BOULEVARD
COPPELL, TEXAS 75019
(Address of principal executive offices)
TELEPHONE NUMBER (972) 462-0100
(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 [ ]
Indicate the number of shares outstanding of each of the issurers' classes of
Common Stock as of the latest practical date.
Class of Common Stock Shares outstanding at January 13, 2000
--------------------- --------------------------------------
$0.01 Par Value 5,292,780
<PAGE>
TST/IMPRESO, INC. AND SUBSIDIARIES
FORM 10-Q
NOVEMBER 30, 1999
INDEX
PART 1. FINANCIAL INFORMATION PAGE NUMBER
Item 1. Consolidated Financial Statements:
Interim Consolidated Balance Sheets as of November,
30, 1999, (Unaudited) and August 31, 1999 1
Interim Consolidated Statements of Operations for the
Three Months Ended November 30, 1999, and 1998
(Unaudited) 3
Interim Consolidated Statements of Cash Flows for the
Three Months Ended November 30, 1999, and 1998
(Unaudited) 4
Notes to Interim Consolidated Financial Statements 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 11
SIGNATURES 12
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<TABLE>
<CAPTION>
TST/IMPRESO, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
November 30, 1999 August 31, 1999
(Unaudited)
----------------- ---------------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 55,579 $ 22,629
Trade accounts receivable, net of allowance for
doubtful accounts of $160,000 at November 30, 1999
and $130,397 at August 31, 1999 8,068,256 6,295,988
Income tax receivable -- 478,909
Investments in marketable securities 11,088 11,088
Inventories 22,182,244 18,801,015
Prepaid expenses and other 220,773 200,739
Deferred income tax assets 85,135 44,335
------------ ------------
Total current assets 30,623,075 25,854,703
------------ ------------
Property, plant and equipment, at cost 17,026,808 16,845,961
Less-Accumulated depreciation (9,540,568) (9,635,739)
------------ ------------
Net property, plant and equipment 7,486,240 7,210,222
------------ ------------
Other assets 72,532 19,453
------------ ------------
Total assets $ 38,181,847 $ 33,084,378
============ ============
The accompanying notes are an integral part of these consolidated balance sheets.
</TABLE>
1
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<TABLE>
<CAPTION>
TST/IMPRESO, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
November 30,1999 August 31,1999
(Unaudited)
---------------- --------------
<S> <C> <C>
Current liabilities:
Accounts payable $10,425,655 $ 9,053,907
Accrued liabilities 2,077,962 1,678,862
Current maturities of long-term debt 114,018 28,179
Line of credit 9,192,451 6,357,787
Prepetition liabilities:
Current maturities of long-term debt 33,797 35,233
----------- -----------
Total current liabilities 21,843,883 17,153,968
----------- -----------
Deferred income tax liability 744,041 727,865
Long-term portion of prepetition debt, net of current maturities 231,378 884,785
Long-term debt, net of current maturities 2,663,621 1,744,487
----------- -----------
Total liabilities 25,482,923 20,511,105
----------- -----------
Commitments and contingencies
Stockholders' equity:
Preferred Stock, $.01 par value; 5,000,000 shares authorized;
0 shares issued and outstanding -- --
Common Stock, $.01 par value; 15,000,000 shares authorized;
5,292,780 shares issued and outstanding 52,928 52,928
Warrants 110 110
Additional paid-in capital 6,319,572 6,319,572
Retained earnings 6,326,314 6,200,663
----------- -----------
Total stockholders' equity 12,698,924 12,573,273
----------- -----------
Total liabilities and stockholders' equity $38,181,847 $33,084,378
=========== ===========
The accompanying notes are an integral part of these consolidated balance sheets.
</TABLE>
2
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<TABLE>
<CAPTION>
TST/IMPRESO, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
November 30,
1999 1998
----------- -----------
<S> <C> <C>
Net sales $16,508,353 $14,272,022
Cost of sales 14,603,992 12,551,715
----------- -----------
Gross Profit 1,904,361 1,720,307
----------- -----------
Other costs and expenses:
Selling, general and administrative 1,481,180 1,296,598
Interest expense 243,406 181,733
Other expenses (income), net 2,949 19,221
----------- -----------
Total other costs and expenses 1,727,535 1,497,552
----------- -----------
Income before income tax expense 176,826 222,755
Income tax expense (benefit):
Current 75,800 84,199
Deferred (24,624) 1,856
----------- -----------
Net income $ 125,650 $ 136,700
=========== ===========
Net income per common share (basic and diluted) $ .02 $ .03
=========== ===========
Weighted average shares outstanding 5,292,780 5,292,780
The accompanying notes are an integral part of these consolidated financial statements.
</TABLE>
3
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<TABLE>
<CAPTION>
TST/IMPRESO, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended
November 30,
1999 1998
----------- -----------
<S> <C> <C>
Cash Flows From Operating Activities
Net Income $ 125,650 $ 136,700
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities-
Depreciation and amortization 154,675 120,358
Increase (decrease) in deferred income taxes (24,624) 1,856
(Increase) decrease in accounts receivable, net (1,772,268) 691,471
Increase in inventories (3,381,229) (81,523)
Increase in prepaid expenses and other (20,034) (15,080)
Increase in other noncurrent assets (53,079) (8,436)
Increase in accounts payable 1,371,748 1,241,772
Increase (decrease) in accrued liabilities 399,100 (198,762)
Decrease in Federal Income Tax receivable 478,909 --
----------- -----------
Net cash (used in) provided by operating activities (2,721,152) 1,888,356
----------- -----------
Cash Flows From Investing Activities:
Additions to property, plant and equipment (458,453) (52,065)
Sales of property, plant, and equipment, net 27,760 10,500
----------- -----------
Net cash used in investing activities (430,693) (41,565)
----------- -----------
Cash Flows From Financing Activities:
Borrowings (payments) on line of credit, net 2,834,664 (1,682,022)
Payments on prepetition debt (654,843) (15,156)
Borrowings (payments) on post petition debt, net 1,004,974 (7,950)
----------- -----------
Net cash provided by (used) in financing activities 3,184,795 (1,705,128)
----------- -----------
Net increase in cash and cash equivalents 32,950 141,663
Cash and cash equivalents, beginning of period 22,629 117,840
----------- -----------
Cash and cash equivalents, end of period $ 55,579 $ 259,503
=========== ===========
The accompanying notes are an integral part of these consolidated financial statements.
</TABLE>
4
<PAGE>
TST/IMPRESO, INC. AND SUBSIDIARIES
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. ORGANIZATION AND NATURE OF BUSINESS
TST/Impreso, Inc., a Delaware corporation, is a manufacturer and distributor to
dealers and other resellers of paper and film products for commercial and home
use in domestic and international markets. TST/Impreso, Inc.'s product line
consists of standard continuous computer stock business forms; thermal facsimile
paper; cut sheet products such as copy paper, ink jet paper, digital photo paper
and transparencies; fine business stationary; point of sale and cash register
machine rolls; high speed laser roll paper; wide format engineering rolls; wide
format ink jet media; and processed laser cut sheets. TST/Impreso, Inc. has
three wholly owned subsidiaries: Big Time Paper, Inc., TST/Impreso of
California, Inc., and Texas Stock Tab of West Virginia, Inc. Each subsidiary was
formed to support activities of TST/Impreso, Inc. (referred to collectively with
its consolidated subsidiaries as the "Company").
2. INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
In the opinion of management, the unaudited Interim Consolidated Financial
Statements of the Company include all adjustments, consisting only of normal
recurring adjustments, necessary for a fair presentation of the Company's
financial position as of November 30, 1999, and its results of operations for
the three months ended November 30, 1999 and 1998. Results of the Company's
operations for the interim period ended November 30, 1999, may not be indicative
of results for the full fiscal year. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted
pursuant to the rules and regulations promulgated by the Securities and Exchange
Commission (the "SEC").
The unaudited Interim Consolidated Financial Statements should be read in
conjunction with the Audited Consolidated Financial Statements and accompanying
notes of the Company and its subsidiaries, included in the Company's Form 10-K,
as amended by Form 10-K/A (the "Company's Form 10-K"), for the fiscal year ended
August 31, 1999 ("Fiscal 1999"), File Number 0-26774. Accounting policies used
in the preparation of the unaudited Interim Consolidated Financial Statements
are consistent in all material respects with the accounting policies described
in the Notes to Consolidated Financial Statements in the Company's Form 10-K.
3. INVENTORIES
Inventories are stated at the lower of cost (principally on a first-in,
first-out basis) or market and include material, labor, and factory overhead.
Inventories consisted of the following:
November 30, August 31,
1999 1999
------------ ------------
Finished Goods $ 5,858,335 $ 5,126,046
Raw Materials 15,510,759 12,826,083
Supplies 764,989 783,964
Work-in-process 48,161 64,922
------------ ------------
Total $ 22,182,244 $ 18,801,015
============ ============
5
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<TABLE>
<CAPTION>
4. LONG -TERM DEBT AND LINE OF CREDIT:
The following is a summary of long-term debt and line of credit:
November 30, August 31,
1999 1999
------------ ------------
<S> <C> <C>
Note payable to a commercial financial corporation under a revolving credit
line maturing May 2001, secured by inventories, trade accounts receivable,
equipment, goodwill associated with the Company's trademark IMPRESO (no
value on financial statements), and a personal guarantee by the trustee of a
trust which is a principal shareholder of the Company, interest payable
monthly at prime plus1/4% (8.5% at November 30, 1999). $ 9,192,451 $ 6,357,787
Note payable to a commercial financial corporation, secured, payable in
monthly installments, interest at 1.3%, maturing June 2001. 8,936 9,862
Note payable to a commercial financial corporation, payable in monthly
installments, interest at 7.25%, maturing December 2002. 45,467 48,980
Note payable to a bank secured by property, payable in monthly installments
of $14,391 (including interest at 4.5% above the 11th District Cost of Funds
rate, 9.5% at November 30, 1999) maturing August 2008. 1,695,721 1,698,720
Note payable to a commercial financial corporation, secured, payable in
monthly installments, interest rate of 6.7%, maturing July 2003. 14,253 15,103
Note payable to a bank, secured by property, payable in monthly
installments, of $8,170, interest rate at 8.5% for 5 years, interest at
prime plus 0.25% thereafter, maturing December 2009. 646,681 --
Note payable to a commercial financial corporation, payable in monthly
installments, interest rate at 10.27%, maturing September 2004. 243,912 --
Note payable to a commercial financial corporation, payable in monthly
installments, interest rate at 11.17%, maturing November 2004. 106,602 --
Note payable to a commercial financial corporation, payable in monthly
installments, interest rate at 6.9%, maturing August 2004. 16,068 --
Note payable to a bank, secured by property, payable in monthly installments
of $4,815 (including interest at 6%) through May 2003, at which time the
remaining balance becomes due and payable. -- 546,120
Other notes payable, secured by one or more of the following: a personal
guarantee by the trustee of a trust which is a principal shareholder of the
Company, and certain property, plant, and equipment, maturity dates to 2023,
interest rates ranging from 4% to 8%. 265,174 373,899
------------ ------------
Total 12,235,265 9,050,471
Less-Current maturities (9,340,266) (6,421,199)
------------ ------------
Long term debt $ 2,894,999 $ 2,629,272
============ ============
</TABLE>
6
<PAGE>
The revolving credit line is limited to the lesser of $13,000,000 or a
percentage of eligible trade accounts receivable and inventories, as defined.
The remaining availability under the revolving credit line was $3.7 million as
of November 30, 1999. The line of credit, as amended, has restrictive covenants
requiring the maintenance of a minimum tangible net worth and working capital
requirements, as defined. As of November 30, 1999, the Company was in compliance
with all covenants.
5. SUPPLEMENTAL CASH FLOW INFORMATION
Three Months Ended
November 30,
1999 1998
-------- --------
Cash paid during the period for:
Interest $243,406 $181,733
Income taxes $ 17,014 $ 18,332
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS FOR THE INTERIM PERIODS ENDED NOVEMBER 30, 1999, AND 1998
Net Sales---Net sales increased from $14.3 million in the three months ended
November 30, 1998, ("First Quarter 1999"), to $16.5 million for the three months
ended November 30, 1999 ("First Quarter 2000"), an increase of 15.7%, as a
result of the increased sales of branded products.
Gross Profit---Gross profit increased from $1.7 million in the First Quarter
1999 to $1.9 million in the First Quarter 2000, an increase of approximately
10.7%. The increase of gross profit was primarily the result of increased sales.
Our gross profit margin decreased to 11.5% for the First Quarter 2000, as
compared to 12% for the corresponding period of the prior year. The decreased
gross profit margin resulted from increased raw material costs which were not
fully passed on to our customers.
Selling, General, and Administrative Expenses--- SG&A expenses increased from
$1.3 million in the First Quarter 1999, to $1.5 million in the First Quarter
2000, an increase of 14.2%. SG&A as a percentage of net sales remained constant
at 9%. SG&A expenses increased as a dollar amount during this period, as
compared to the corresponding period of the prior year, due to increased
marketing costs, such as slotting fees and entertainment expenses.
Interest Expense---Interest expense increased from $182,000 in the First Quarter
1999 to $243,000 in the First Quarter 2000, an increase of $62,000, or
approximately 33.9%. The increase was primarily attributable to financing
acquisitions of property and equipment, and an increase in inventory which
increased the outstanding borrowing under our line of credit.
Income Taxes---Our income tax expense for the First Quarter 2000 decreased to
$51,176, as compared to $86,055 for the corresponding period of the prior year.
The decrease in income tax expense was the result of a deferred tax benefit
applied to the fiscal year ending August 31, 2000.
7
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
Working capital increased to $8.8 million at November 30, 1999, from $8.7
million at August 31, 1998. This represented an increase of 1.0%, primarily
attributable to a $3.4 million increase in our inventory, partially offset by an
approximate $1.4 million increase in accounts payable, and a $ 2.8 million
increase in borrowing under our line of credit.
In May 1999, we entered into an agreement with a bank for a two-year renewal of
our revolving line of credit. The loan is secured by, among other things,
inventory, trade receivables, equipment and a personal guarantee of Marshall
Sorokwasz, Chairman of the Board and President of our company and trustee of a
trust which is a principal shareholder of our company. Available borrowings
under this line of credit, which accrues interest at the prime rate of interest
plus 1/4% (8.5% at November 30, 1999), are based upon specified percentages of
eligible accounts receivable and inventories. As of November 30, 1999, there was
a $3.7 million borrowing capacity remaining under the $13 million line of
credit. The renewed loan has more favorable terms, including an increase in the
line from $12 million to $13 million, a decreased interest rate ranging from
prime plus 1/2% to prime plus 1/4% based upon financial performance, and an
increased percentage of borrowing based on inventory.
On November 22, 1999, we entered into a loan agreement with Valley Bank-East,
National Association to co-fund the construction of a new building and the
refinance of the mortgage of our existing facility in West Virginia. On December
30, 1999, we entered into an agreement with the West Virginia Economic
Development Association on the same project. The new building will be
constructed on our property adjacent to our West Virginia plant, will be
approximately 50,000 square feet, and will be used to store inventory which is
currently stored at a public warehouse location. The additional debt we will
incur at the conclusion of the construction will be approximately $870,000 at
the anticipated completion date of May 2000.
We believe that the funds available under the loan and loan commitment for the
addition to our West Virginia facility, the revolving credit facility, cash and
cash equivalents, trade credit, and internally generated funds will be
sufficient to satisfy our requirements for working capital and capital
expenditures for at least the next twelve months. Such belief is based on
certain assumptions, including the continuation of current operations and no
extraordinary adverse events, and there can be no assurance that such
assumptions are correct. In addition, expansion of our operations due to demand
for the new types and brands of product we manufacture may require us to obtain
additional capital to add new manufacturing facilities. We anticipate if that
should occur, the funds required for the new facilities would be generated
through securities offerings or additional debt. There can be no assurance that
any additional financing will be available if needed, or, if available, will be
on acceptable terms.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are not exposed to market risks such as foreign currency exchange rates, but
are exposed to risks such as variable interest rates. Market risk is the
potential loss arising from adverse changes in market prices and rates. We do
not have supply contracts with any of our foreign vendors. All foreign vendors
are paid in United States currency. In addition, our international sales of
finished goods are insignificant. Accordingly, there are not sufficient factors
to create a material foreign exchange rate risk; therefore, we do not use
exchange commitments to minimize the negative impact of foreign currency
fluctuations.
We had both fixed-rate and variable-rate debts as of November 30, 1999. The fair
market value of long-term variable interest rate debt is subject to interest
rate risk. Generally the fair market value of variable interest rate debt will
decrease as interest rates fall and increase as interest rates rise.
8
<PAGE>
The estimated fair value of our total long-term fixed rate and floating rate
debt approximates fair value.
As of November 30, 1999, we did not own derivative or other financial
instruments for trading or speculative purposes.
Based upon our market risk sensitive debt outstanding at November 30, 1999,
there was no material exposure to our financial position or results of
operations.
INVENTORY MANAGEMENT; RAW MATERIALS
We believe that it is necessary to maintain a large inventory of finished goods
and raw materials to adequately service our customers. Because we are currently
manufacturing and distributing new brands and types of products, our raw
material and finished goods inventory requirements have increased over prior
years. Therefore, we have substantially increased our inventory levels. In
addition, increasing international sourcing of raw materials has impacted
delivery cycles resulting in our expanding inventory to accommodate less
frequent, larger shipments. We bear the risk of increases in the prices charged
by our suppliers and decreases in the prices of raw materials held in our
inventory. If prices for products held in our finished goods inventory decline
or if prices for raw materials required by us decline, or if new technology is
developed that renders obsolete products distributed by us and held in
inventory, our business could be materially adversely affected.
MARKET CONDITIONS
During the third quarter of fiscal 1999, our suppliers began increasing the
price of raw materials resulting in our implementing a price increase for our
finished goods. As a result of another price increase by our suppliers in the
First Quarter 2000, we began the implementation of another price increase on
finished goods.
Management believes that raw material paper costs will continue to increase into
the second quarter of fiscal 2000 and then stabilize. Although the finished
goods price increase in the third quarter of fiscal 1999 was successfully
implemented, resistance by customers to finished goods price increases in the
First Quarter 2000 has created downward pressure on finished goods selling
prices, which has resulted in lower profit margins. If selling prices for
products manufactured by us cannot increase in relationship to raw material cost
increases, or if prices for products manufactured by us decline as a result of
market pressures, our results of operations could be materially adversely
affected.
SEASONALITY
We may be subject to certain seasonal fluctuations in that orders for products
may decline over the summer months. However, we do not believe that such
fluctuations have a material adverse effect on our results of operations.
YEAR 2000
Total costs of remediation of all information and non-information technology was
approximately $180,000. No adverse events occurred on January 1, 2000.
9
<PAGE>
SUBSEQUENT EVENTS
On December 28, 1999, we received notice from the Nasdaq Stock Market that we
are in compliance with Marketplace Rule 4450(a)(2), minimum market value of
public float.
On March 7, 2000, at our annual shareholders meeting, the shareholders will vote
on a proposal to create a parent holding company, named Impreso.com, Inc., which
will trade under the symbol ZCOM. Impreso.com, Inc. will hold the shares of
TST/Impreso, Inc. and a sibling subsidiary, Hotsheet.com, Inc.
The purpose of this transaction is to organize our different business segments
into separate companies which we believe will enable us to more rapidly respond
to opportunities and to more easily expand our HotSheet web portal site
business.
On December 15, 1999, we executed a consulting contract with Direct Marketing
Consultants, Inc., to locate and engage suitable experts, employees, and
investors in Hotsheet.com. We initially intend to raise $10 million, through
private placements, for approximately 10% to 15% of the equity of Hotsheet.com,
Inc. to finance the operations and growth of the HotSheet web portal. There can
be no assurance, however, that such financing can be obtained, or if available,
will be on acceptable terms.
FORWARD-LOOKING STATEMENTS
Management's Discussion and Analysis of Financial Condition and the Results of
Operations and the sections of this Form 10-Q contain "forward-looking
statements" about our prospects for the future, such as our ability to generate
sufficient working capital, our ability to continue to maintain sales to justify
capital expenses, and our ability to generate additional sales to meet business
expansion. Such statements are subject to certain risks and uncertainties which
could cause actual results to differ materially from those projected, including
availability of raw materials, availability of thermal facsimile, computer,
laser and color ink jet paper, to the cyclical nature of the industry in which
we operate, the potential of technological changes which would adversely affect
the need for our products, price fluctuations which could adversely impact the
large inventory we require, loss of any significant customer, and termination of
contracts essential to our business. Parties are cautioned not to rely on any
such forward-looking statements or judgments in making investment decisions.
10
<PAGE>
PART II: OTHER INFORMATION
ITEM 6: EXHIBITS AND REPORTS ON FORM 8-K
EXHIBIT NO. DESCRIPTION OF EXHIBITS
- ----------- -----------------------
(a) 27 Financial data schedule.
(b) No reports on Form 8-K were filed during the quarter ended
November 30, 1999.
11
<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.
Dated: January 13, 2000
TST/ Impreso, Inc.
(Registrant)
/s/ MARSHALL SOROKWASZ
----------------------------
Marshall Sorokwasz
Chairman of the Board, Chief
Executive Officer, President
and Director
/s/ SUSAN ATKINS
----------------------------
Susan Atkins
Vice President and
Chief Financial Officer
12
<PAGE>
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION OF EXHIBITS
- ----------- -----------------------
27 Financial data schedule.
13
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000947219
<NAME> TST/IMPRESO, INC.
<MULTIPLIER> 1,000
<CURRENCY> USD
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> AUG-31-2000
<PERIOD-START> SEP-01-1999
<PERIOD-END> NOV-30-1999
<EXCHANGE-RATE> 1
<CASH> 55,579
<SECURITIES> 11,088
<RECEIVABLES> 8,228,256
<ALLOWANCES> 160,000
<INVENTORY> 22,182,244
<CURRENT-ASSETS> 30,623,075
<PP&E> 17,026,808
<DEPRECIATION> 9,540,568
<TOTAL-ASSETS> 38,181,847
<CURRENT-LIABILITIES> 21,843,883
<BONDS> 0
53,038
0
<COMMON> 0
<OTHER-SE> 12,645,886
<TOTAL-LIABILITY-AND-EQUITY> 38,181,847
<SALES> 16,508,353
<TOTAL-REVENUES> 16,508,353
<CGS> 14,603,992
<TOTAL-COSTS> 14,603,992
<OTHER-EXPENSES> 2,949
<LOSS-PROVISION> 160,000
<INTEREST-EXPENSE> 243,406
<INCOME-PRETAX> 176,826
<INCOME-TAX> 51,176
<INCOME-CONTINUING> 125,650
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 125,650
<EPS-BASIC> .02
<EPS-DILUTED> .02
</TABLE>
