U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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 June 30, 1998
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. 33-960-70-LA
THANKSGIVING COFFEE COMPANY, INC.
(Exact name of small business issuer
as specified in its charter)
California 94-2823626
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification Number)
19100 South Harbor Drive
Fort Bragg, California 95437
(Address of principal executive Officers) (Zip Code)
Issuer's telephone number, including area code: (707) 964-0118
(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 Securities Exchange Act of
1934 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 \X\ No \ \
As of August 13, 1998, there were issued and outstanding
1,236,744 shares of common stock of the issuer.
<PAGE>
THANKSGIVING COFFEE COMPANY, INC.
INDEX
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements Page No.
Balance Sheet at June 30, 1998 and
December 31, 1997 . . . . . . . . . . . . . . . . . 1
Statements of Income for the Three Months
Ended June 30, 1998 and June 30, 1997 and for
the Six Months Ended June 30, 1998 and
June 30, 1997 . . . . . . . . . . . . . . . . . . . 3
Statements of Cash Flows for the Six Months
Ended June 30, 1998 and June 30, 1997 . . . . . . . 4
Notes to Financial Statements . . . . . . . . . . . 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations . . . . . . . . . . . . . . . . . . . . 7
PART II. OTHER INFORMATION
Item 1. Legal Proceedings . . . . . . . . . . . . . . . . . 13
Item 2. Changes in Securities . . . . . . . . . . . . . . . 13
Item 3. Defaults Upon Senior Securities . . . . . . . . . . 13
Item 4. Submission of Matters to a vote of Security-
Holders . . . . . . . . . . . . . . . . . . . . . . 13
Item 5. Other Information . . . . . . . . . . . . . . . . . 13
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . 13
<PAGE>
THANKSGIVING COFFEE COMPANY, INC.
Balance Sheet
ASSETS
June 30, 1998 December 31, 1997
Unaudited Audited
CURRENT ASSETS
Cash $89,193 $46,872
Short Term Investments 119 31,519
Accounts Receivable 400,018 417,221
Note Receivable -
Griswold 19,496 56,973
Employee Receivable 4,627 6,041
Inventory 421,715 513,303
Other Receivable & 47,072 180,381
Prepaids _________ _________
Total Current Assets 982,240 1,252,310
PROPERTY AND EQUIPMENT
Property Fixtures &
Equipment 2,091,794 2,045,464
Accumulated (1,131,305) (1,049,873)
Depreciation _________ _________
Total Property &
Equipment 960,489 995,591
OTHER ASSETS
Deposits And Other
Assets 74,195 35,329
Note Receivable -
Griswold 32,027 32,027
Intangibles, Net Of 268,881 281,192
Amortization _________ _________
Total Other Assets 375,103 348,548
Total Assets 2,317,832 2,596,449
========= =========
See accompanying notes to financial statements.
-1-<PAGE>
THANKSGIVING COFFEE COMPANY, INC.
Balance Sheet
LIABILITIES AND STOCKHOLDERS' EQUITY
June 30, 1998 December 31, 1997
Unaudited Audited
CURRENT LIABILITIES
Accounts Payable $502,283 $426,810
Notes Payable - Banks 621,636 621,636
Loan Payable - Shareholder 63,636 24,625
Accrued Liabilities 139,854 74,724
Current Portion of Long- 137,121 108,459
Term Debt _________ _________
Total Current
Liabilities 1,464,530 1,256,254
LONG-TERM LIABILITIES
Notes Payable - Long-Term 336,495 429,044
Notes Payable - Shareholder 0 58,827
Deferred Income Taxes 0 66,535
_________ _________
Total Long Term
Liabilities 336,495 554,406
STOCKHOLDERS' EQUITY
Common Stock - No Par Value
1,960,000 Shares
Authorized; 1,236,744
Shares Issued And
Outstanding At
March 31, 1998 872,816 872,816
Additional Paid-In Capital 24,600 24,600
Unrealized Gain on
Investments 0 3,656
Retained Earnings (380,609) (115,283)
_________ _________
Total Stockholders' 516,807 785,789
Equity _________ _________
Total Liab & Equity 2,317,832 2,596,449
========= =========
See accompanying notes to financial statements.
-2-<PAGE>
THANKSGIVING COFFEE COMPANY, INC.
Statements Of Income (Unaudited)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
1998 1997 1998 1997
Net Sales 1,445,071 1,910,385 2,793,104 2,983,806
Cost Of Sales 860,149 1,071,589 1,719,599 1,512,096
_________ _________ _________ _________
Gross Profit 584,922 838,796 1,073,505 1,471,710
OPERATING EXPENSES
Selling, General &
Administration 596,657 763,402 1,247,520 1,493,640
Depreciation & 40,746 45,608 83,406 72,878
Amortization _________ _________ _________ _________
Total Operating Expenses 637,403 809,010 1,330,926 1,566,518
_________ _________ _________ _________
Operating Income
(Loss) (52,481) 29,786 (257,421) (94,808)
OTHER (INCOME) EXPENSE
Interest (Income) (1,519) (1,082) (1,519) (2,978)
Interest Expense 34,768 42,470 67,243 56,529
Misc. (Income) Expense 1,000 (868) 8,079 (2,668)
_________ _________ _________ _________
Total Other (Income) 34,249 40,520 73,802 50,883
Expense _________ _________ _________ _________
Income (Loss) Before (86,730) (10,734) (331,223) (145,691)
Taxes _________ _________ _________ _________
Tax Expense (Credit) (65,735) 0 (65,897) 0
Net Income (Loss) (20,995) (10,734) (265,325) (145,691)
========= ========= ========= =========
See accompanying notes to financial statements.
-3-<PAGE>
THANKSGIVING COFFEE COMPANY, INC.
Statements Of Cash Flow (Unaudited)
Six Months Ended
June 30, 1998 June 30, 1997
CASH FLOWS FROM OPERATING
ACTIVITIES
Net Income (Loss) $ (265,325) $ (145,691)
Non Cash Items Included Net
Income (Loss)
Depreciation &
Amortization 91,911 72,878
(Increase) Decrease In:
Short Term
Investments 31,400 0
Receivables 18,617 (224,300)
Inventory 91,588 (365,421)
Commodities Options
Account 0 (85,741)
Prepaid Expenses/
Other Receivables 133,308 (31,644)
Deposits/Other (38,866) 0
Increase (Decrease) In:
Accounts Payable 75,473 221,915
Accrued Liabilities 65,132 34,158
Deferred Inc. Taxes (66,535) 0
_______ ________
Net Cash Provided By
Operating Activities 136,703 (523,846)
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchase Of Equipment (45,500) (189,169)
Purchase Of Intangible
Assets 0 6,113
Proceeds from Sale of
Equipment 1,000 0
Unrealized Gain (Loss) on
Investments (3,656) 0
Adjustment to Retained 0 (72,135)
Earnings _______ ________
Net Cash Used By (48,156) (255,191)
Investing Activities _______ ________
See accompanying notes to financial statements.
-4-<PAGE>
THANKSGIVING COFFEE COMPANY, INC.
Statements Of Cash Flow (Unaudited) (continued)
Six Months Ended
June 30, 1998 June 30, 1997
CASH FLOWS FROM FINANCING
ACTIVITIES
(Repayment) Proceeds of
Notes Payable (83,703) 631,537
(Increase) Decrease of
Notes Receivable 37,477 (9,601)
________ ________
Net Cash Used By
Financing Activities (46,226) 621,936
________ ________
Net Increase (Decrease) In
Cash 42,321 (157,101)
Cash, As Of January 1, 1998 46,872 399,038
And 1997 ________ _________
Cash, As Of June 30, 1998 $ 89,193 $ 241,397
And 1997 ======== =========
See accompanying notes to financial statements.
-5-<PAGE>
THANKSGIVING COFFEE COMPANY, INC.
Notes to Financial Statements (Unaudited)
Note 1 - Basis of Presentation
The accompanying unaudited consolidated financial statements
have been prepared in accordance with generally accepted
accounting principles and reflect all adjustments necessary
for a fair presentation of the information reported (which
consists only of normal recurring adjustments). Because the
Company's sales have fluctuated significantly from quarter to
quarter due to the holiday season and due to a variety of
other factors, the results of operations for the six months
ended June 30, 1998 are not necessarily indicative of the
results to be expected for the full year. The consolidated
financial statements should be read in conjunction with the
financial statements, including notes thereto, for the fiscal
years ended December 31, 1997 and 1996, which are included in
the Company's Form 10-K for the year ended December 31, 1997
filed on March 31, 1998.
At June 30, 1998 there were total borrowings of $1,158,888,
including an outstanding balance of $601,636 under the
Company's line of credit agreement with Wells Fargo & Company
("Wells Fargo") which expired on August 10, 1998. The
Company is currently in negotiations with Wells Fargo
regarding this outstanding balance. In connection with these
negotiations, the Company expects that Wells Fargo will
convert the outstanding balance into a term loan with a term
of five years. However, there can be no assurances that
these negotiations will be successful and the outstanding
balance will be so converted. As the credit agreement has
expired, Wells Fargo has the option, at any time, to demand
payment of the outstanding balance which would have an
immediate material and adverse impact on the Company's
business.
-6-<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
This Form 10-QSB contains certain forward looking statements,
which are subject to certain risks and uncertainties,
including but not limited to fluctuations in the availability
and costs of green coffee beans, availability and sufficiency
of trade credit and other financing sources, competition in
the Company's businesses, inability to secure adequate
capital to fund its operating losses and working capital
requirements, inability to successfully implement its
business plan, inability to successfully complete the
negotiations with Wells Fargo regarding the outstanding
balance on the credit line and other risks identified in the
Company's Form 10-K for the year ended December 31, 1997.
On October 10, 1996, the Company completed its public
offering of common stock. 235,744 shares were sold for an
aggregate of $1,118,720. The Company currently has 1,236,744
shares issued and outstanding.
In April of 1998, the Company discontinued its organic rebate
program in which 15 cents per unit of certain organic coffees
was donated to certain nonprofit organizations and
cooperatives. As a result of discontinuing this program, the
Company has realized and will continue to realize an
additional 15 cents of revenue on each unit of these coffees
that is sold. At the end of June 30, 1998, $12,334 in cash
remained in the rebate bank account. The monies are expected
to be distributed by the end of fiscal 1998.
The Company continues to sublease its retail coffee shop in
Fort Bragg, California (the "Cafe") to a third party which
sells the Company's coffee and tea products.
In March of 1998, the Company acquired a new roaster in
accordance with its business plan. The roaster will provide
the Company with additional roasting capacity which the
Company believes will lead to increased operating efficiency.
RESULTS OF OPERATIONS
Three Months Ended June 30, 1998 Compared With Three Months
Ended June 30, 1997
Consolidated net sales for the three months ended June 30,
1998 were $1,445,071, a decrease of 24% from net sales of
$1,910,385 for the same period in 1997. This decrease in net
sales was primarily due to the fact that net sales for the
three months ended June 30, 1997 included coffee bean sales
by the Company's former green bean subsidiary, Sustainable
Harvest, Inc. ("Sustainable Harvest") and retail sales by the
Cafe. Net sales for the three months ended June 30, 1998 do
-7-<PAGE>
not include any such bean sales as Sustainable Harvest was
sold by the Company on December 31, 1997, and the Cafe
discontinued operations at the end February, 1998. The
Company's core sales (exclusive of the sales from Sustainable
Harvest, the Cafe and the Company's retail bakery -- the
"Bakery") grew 7% for the three months ended June 30, 1998
compared to the same period in 1997.
Gross margin (gross profit as a percentage of net sales)
declined from 44% for the three months ended June 30, 1997 to
40% in the same period in 1998. This decrease is in part due
to an accounting change effective October 1, 1997 to record
labor expenses for the Bakery as part of cost of sales,
rather than as part of selling, general and administrative
expenses. In addition, in the three months ended June 30,
1997 the Company posted approximately $84,000 in commodity
gains which decreased the cost of the sales and thereby
increased the gross margin for that period. The Company's
core gross margins (exclusive of the Bakery, the Cafe and
Sustainable Harvest) declined from 55% for the three months
ended June 30, 1997 to 42% in the same period of 1998, due
primarily to higher costs of certain specialty green beans
(including organic, shade grown, Asian and African beans) and
the absence of commodity gains posted in 1997. Management
expects its gross margins to improve through the end of the
year due to the availability of lower-cost green beans for
which the Company has already contracted, as well as unit
price increases in organic, shade grown and other selected
varieties of coffees that began in March of 1998 and will
continue to be phased in through September of 1998. However,
there can be no assurance that the Company will be successful
in implementing price increases without losses in sales
volume or gross margin.
Selling, general and administrative expenses decreased 22%,
from $763,402 (40% of net sales) in the three months ended
June 30, 1997 to $596,657 (41% of net sales) for the same
period in 1998. The decrease in selling, general and
administration expense is primarily due to: an accounting
change effective October 1, 1997 to record labor expenses for
the Bakery as part of cost of sales, rather than as part of
selling, general and administrative expenses; the Company
having no expenses for the Cafe and Sustainable Harvest in
the three months ended June 30, 1998; and a decrease in mail
order expenses. Core selling, general and administrative
expenses (exclusive of the Bakery, the Cafe and Sustainable
Harvest) decreased 1% in the three months ended June 30, 1998
compared to the same period in 1997 mainly due to lower mail
order expenses and decreases in total wages.
Depreciation and amortization expense decreased 11% from
$45,608 for the three months ended June 30, 1997 to $40,746
for the same period in 1998 as a result of differences in the
timing of recording depreciation and amortization expense
-8-<PAGE>
between the first and second quarters of fiscal 1997 as
compared to the first and second quarters of fiscal 1998.
Interest expense decreased 18% from $42,470 for the three
months ended June 30, 1997 to $33,415 for the same period in
1998, as a result of differences in the timing of recording
interest between the first and second quarters of fiscal 1997
as compared to the first and second quarters of fiscal 1998.
Interest expense as a percentage of net sales increased from
2.2% for the three months ended June 30, 1997 to 2.4% for the
three months ended June 30, 1998.
Because the Company incurred a loss for the three months
ended June 30, 1998, it did not incur any tax expense. The
Company recorded a favorable nonrecurring tax credit
adjustment of $65,735 during the three months ended June 30,
1998 to compensate for tax accruals in prior periods that
were deemed unnecessary by management since the Company has
sufficient tax loss carry forwards to offset taxable income
in the foreseeable future.
As a result of the foregoing factors, the Company incurred a
net loss of $20,995 for the three months ended June 30, 1998
compared with a net loss of $10,734 for the three months
ended June 30, 1997.
Six Months Ended June 30, 1998 Compared With Six Months Ended
June 30, 1997.
Consolidated net sales for the six months ended June 30, 1998
were $2,793,104, a decrease of 6% over net sales of
$2,983,806 for the same period in 1997. This decrease was
primarily due to the fact that net sales for the six months
ended June 30, 1998 do not include any sales from Sustainable
Harvest and sales from the Cafe for only the first two months
of fiscal 1998. The Company's core net sales (exclusive of
the Bakery, the Cafe and Sustainable Harvest) grew 11% for
the six months ended June 30, 1998 compared to the same
period in 1997.
Gross margin (gross profit as a percentage of net sales)
decreased from 49% for the six months ended June 30, 1997 to
38% for the same period in 1998. This decrease is in part
due to an accounting change effective October 1, 1997 to
record labor expenses for the Bakery and the Cafe as part of
cost of sales, rather than as part of selling, general and
administrative expenses. In addition, in the six months
ended June 30, 1997 the Company posted approximately $151,000
in commodity gains which decreased the cost of the sales and
thereby increased the gross margin for that period. The
Company's core gross margins (exclusive of revenues from the
Bakery, the Cafe and Sustainable Harvest) declined from 51%
for the six months ended June 30, 1997 to 41% in the same
period of 1998, due primarily to higher costs of certain
-9-<PAGE>
specialty green beans (including organic, shade grown, Asian
and African beans) and the absence of the commodity gains
posted in 1997.
Selling, general and administrative expenses decreased 16%
from $1,493,640 (50% of net sales) in the six months ended
June 30, 1997 to $1,247,520 (45% of net sales) in the six
months ended June 30, 1998. The decrease in selling, general
and administration expense is primarily due to: an accounting
change effective October 1, 1997 to record labor expenses for
the Bakery and the Cafe as part of cost of sales, rather than
as part of selling, general and administrative expenses; the
Company having no expenses associated with Sustainable
Harvest for the six months ended June 30, 1998 and expenses
associated with the Cafe for only the first two months of
fiscal 1998; and decreasing mail order expenses. Core
selling, general and administrative expenses (exclusive of
the Bakery, the Cafe and Sustainable Harvest) increased 4% in
the six months ended June 30, 1998 compared to the same
period in fiscal 1997 due to higher prepaid amortized mail
order expenses.
Depreciation and amortization expense increased 14% from
$72,878 for the six months ended June 30, 1997 to $83,406 for
the same period in 1998 as a result of equipment purchases in
the intervening period.
Interest expense increased 19% from $56,529 for the six
months ended June 30, 1997 to $67,243 for the six months
ended June 30, 1998, as a result of higher borrowings.
Interest expense as a percentage of net sales increased from
1.9% for the six months ended June 30, 1997 to 2.4% for the
six months ended June 30, 1998.
Because the Company incurred a loss for the six months ended
June 30, 1998, it did not incur any tax expense. The Company
recorded a favorable nonrecurring tax credit of $65,735
during the six months ended June 30, 1998 to adjust for tax
accruals in prior periods that were deemed unnecessary by
management since the Company has sufficient tax loss carry
forwards to offset taxable income in the foreseeable future.
As a result of the foregoing factors, the Company incurred a
net loss of $265,325 for the six months ended June 30, 1998
compared with a net loss of $145,691 for the six months ended
June 30, 1997.
LIQUIDITY AND CAPITAL RESOURCES
At June 30, 1998, the Company had a working capital
deficiency of $482,290. Net cash provided by operating
activities was $136,703 for the six months ended June 30,
1998, compared to $523,846 used by operating activities for
the six months ended June 30, 1997. The increase in net cash
-10-<PAGE>
provided by operating activities was primarily due to
decreases in inventory and prepaid expenses and increases in
accounts payable and accrued liabilities offset by a decrease
in deferred income taxes. Inventory decreased by $91,588,
prepaid expenses by $133,308 during the six months ended
June 30, 1998; accounts payable increased by $75,473, accrued
liabilities by $65,132, and deferred income taxes decreased
by $66,535 during the same period. In the corresponding six
month period in fiscal 1997, accounts receivable, inventory
and accounts payable increased by $224,300, $365,421 and
$221,915 respectively.
Net cash used in investing activities, which primarily
consists of expenditures for equipment to service new
accounts and sales growth, was $45,500 for the six months
ended June 30, 1998 as compared to $189,169 during the same
period in fiscal 1997. This decrease is primarily
attributable to a decrease in equipment expenditures in
accordance with management's budget and business plan.
Included in net cash used by financing activities during the
six months ended June 30, 1998 was $83,703 net repayment of
notes payables primarily for equipment capital leases; in the
same period for fiscal 1997 the Company received net proceeds
of $631,537 from notes payable.
At June 30, 1998 the Company had total borrowings of
$1,158,888, including an outstanding balance of $601,636
under the Company's $650,000 line of credit with Wells Fargo
which expired on August 10, 1998. Borrowings under the line
of credit are secured by the Company's accounts receivable,
inventory, equipment, fixtures and improvements. The terms
of this facility contain certain limitations and covenant
restrictions, including limits on the incurrence of
additional indebtedness. The Company is currently in
negotiations with Wells Fargo regarding the outstanding
balance of the line of credit. In connection with these
negotiations, the Company expects that Wells Fargo will
convert the outstanding balance into a term loan with a term
of five years. However, there can be no assurances that
these negotiations will be successful and the outstanding
balance will be so converted. As the credit agreement has
expired, Wells Fargo has the option, at any time, to demand
payment of the outstanding balance which would have an
immediate material and adverse impact on the Company's
business.
The Company is dependent on successfully executing its
business plan to achieve profitable operations, obtaining
additional sources of borrowings (including normal trade
credit), and securing favorable financing arrangements
(including lease financing) to finance its immediate working
capital needs. There can be no assurance that the Company
will be successful in this regard. If the Company is not
-11-<PAGE>
able to convert its credit agreement to a term loan or renew
or replace such agreement on comparable terms or at all, the
Company may be unable to fund its working capital
requirements and the Company's business would be materially
and adversely affected.
The seasonal availability of green bean coffee in the first
quarter of the year and increased sales in the last quarter
historically creates a high use of cash and a buildup in
inventories in the first quarter, with a corresponding
decrease in inventory and increase in cash in the last
quarter. Past seasonal patterns are not necessarily
indicative of future results. There can be no assurance that
sales will increase in future quarters.
-12-<PAGE>
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
- Not Applicable -
ITEM 2. CHANGES IN SECURITIES
- Not Applicable -
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
- Not Applicable -
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
- Not Applicable -
ITEM 5. OTHER INFORMATION
- Not Applicable -
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a. Exhibits
27.1 Financial Data Schedule (electronic
only).
b. Form 8-K
No reports on Form 8-K were filed during the period from
March 31, 1998 through June 30, 1998.
-13-<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.
THANKSGIVING COFFEE COMPANY, INC.
Name Title Date
/s/ Paul Katzeff Chief Executive Officer August 13, 1998
________________
Paul Katzeff
/s/ Joan Katzeff President August 13, 1998
________________
Joan Katzeff
-14-<PAGE>
EXHIBIT INDEX
27.1 Financial Data Schedule (electronic only).
-15-<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
UNAUDITED CONSOLIDATED BALANCE SHEET AND STATEMENTS OF INCOME, WHICH ARE
INCLUDED IN THE COMPANY'S FORM 10-QSB FILED HEREWITH, AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 89
<SECURITIES> 0
<RECEIVABLES> 443
<ALLOWANCES> (38)
<INVENTORY> 422
<CURRENT-ASSETS> 982
<PP&E> 2,091
<DEPRECIATION> (1,131)
<TOTAL-ASSETS> 2,318
<CURRENT-LIABILITIES> 1,465
<BONDS> 336
0
0
<COMMON> 873
<OTHER-SE> (356)
<TOTAL-LIABILITY-AND-EQUITY> 2,318
<SALES> 2,793
<TOTAL-REVENUES> 2,793
<CGS> 1,720
<TOTAL-COSTS> 1,720
<OTHER-EXPENSES> 1,331
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 67
<INCOME-PRETAX> (331)
<INCOME-TAX> (66)
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (265)
<EPS-PRIMARY> (0.21)
<EPS-DILUTED> (0.21)
</TABLE>
