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FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended January 31, 2000
----------------
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from: ________________ to ________________
Commission file number: 0-5958
------
MERIDIAN MEDICAL TECHNOLOGIES, INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 52-0898764
- ------------------------------- ------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
10240 Old Columbia Road, Columbia, Maryland 21046
- ------------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 410-309-6830
--------------
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 issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding as of February 28, 2000
- ---------------------------- -----------------------------------
Common Stock, $.10 par value 2,994,930 Shares
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<PAGE>
MERIDIAN MEDICAL TECHNOLOGIES, INC.
FORM 10-Q
<TABLE>
<CAPTION>
Page No.
--------
<S> <C> <C>
PART I. FINANCIAL INFORMATION
- ------------------------------
ITEM 1. Consolidated Financial Statements
Consolidated Balance Sheets as of
January 31, 2000 and July 31, 1999............................................................ 4
Consolidated Statements of Operations for
the Three and Six Months Ended January 31, 2000 and 1999...................................... 5
Consolidated Statements of Cash Flows for
the Six Months Ended January 31, 2000 and 1999................................................ 6
Notes to Consolidated Financial Statements...................................................... 7
ITEM 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.............................................................. 8
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk......................................... 10
PART II. OTHER INFORMATION
- --------------------------
ITEM 4. Submission of Matters to a Vote of Security Holders................................................ 10
ITEM 6. Exhibits and Reports on Form 8-K................................................................... 10
SIGNATURES...................................................................................................... 11
EXHIBIT INDEX................................................................................................... 12
</TABLE>
2
<PAGE>
MERIDIAN MEDICAL TECHNOLOGIES, INC.
FORM 10-Q
INTRODUCTION
Meridian Medical Technologies, Inc. ("MMT", "Meridian", or the "Company") is a
medical device and drug delivery system company focusing on Early Intervention
Healthcare and Emergency Medical Technologies. The Company has three areas of
business. The Injectable Drug Delivery Systems business focuses on injectable
drug delivery devices with an emphasis on commercial auto-injectors, the largest
selling of which is the EpiPen. This business also supplies customized drug
delivery system design, pharmaceutical research and development, and sterile
product manufacturing to pharmaceutical and biotechnology companies. The
Cardiopulmonary Systems business focuses on non-invasive cardiac diagnostics and
telemedicine. The Cardiopulmonary Systems business is beginning the
international distribution of the PRIME ECG system, an 80-lead cardiac mapping
system designed for rapid and improved diagnostic accuracy of cardiac ischemia.
Distributors in major European markets are being targeted and, subject to the
completion of negotiations and execution of distribution agreements, will become
distributors of the system over the coming months. A U.S. based FDA approved
clinical study of the PRIME ECG system began in November 1999. Meridian intends
to complete the study by the fourth quarter of calendar 2000. Subject to a
successful completion of the clinical, a 510(k) application will be made to the
FDA for approval to market the product in the U.S. The Government Systems
business focuses on the world-wide market for auto-injectors used for
self-administration of nerve agent antidotes, morphine and diazepam, and markets
to the U.S. and allied governments, as well as local governments for civil
defense applications.
FORWARD LOOKING STATEMENTS
This report contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act with respect to financial performance
and other financial and business matters. Forward-looking statements are
typically identified by future or conditional verbs or similar expressions
regarding events that have yet to occur. These forward-looking statements are
based on the Company's current expectations and are subject to numerous
assumptions, risks and uncertainties. The following factors, among others, could
cause actual results to differ materially from forward-looking statements:
economic and competitive conditions; capital availability or costs; fluctuations
in demand for the Company's products; government procurement timing and
policies; technological challenges associated with the development and
manufacture of the Company's products; commercial acceptance of the Company's
products; delays, costs and uncertainties associated with clinical testing and
government approvals required to market new drugs and medical devices;
availability and quality of raw materials; success and timing of cost reduction
and quality enhancement programs; regulatory compliance; adequacy of product
liability insurance; ability to obtain, timing and success of marketing
representatives and strategic alliances; and adequacy of intellectual property
protection. Additional information is included in our Annual Report on Form
10-K. Meridian assumes no duty to update forward-looking statements.
3
<PAGE>
MERIDIAN MEDICAL TECHNOLOGIES, INC.
FORM 10-Q
PART I. FINANCIAL INFORMATION
- -----------------------------
ITEM 1. Financial Statements
MERIDIAN MEDICAL TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
<TABLE>
<CAPTION>
January 31, July 31,
Assets 2000 1999
------ ---------- ----------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 458 $ 227
Restricted cash 282 278
Receivables, less allowances of $557 and $467, respectively 10,249 9,557
Inventories 9,205 6,889
Deferred income taxes 1,965 1,965
Prepaid income taxes 310 546
Other current assets 911 771
---------- ----------
Total current assets 23,380 20,233
---------- ----------
Property, plant and equipment 21,978 21,407
Less - Accumulated depreciation 6,554 5,581
---------- ----------
Net property, plant and equipment 15,424 15,826
---------- ----------
Deferred financing fees 706 749
Capitalized software costs 1,588 1,588
Excess of cost over net assets acquired, net 6,872 7,403
Other intangible assets, net 1,787 1,952
---------- ----------
Total assets $ 49,757 $ 47,751
========== ==========
Liabilities and Shareholders' Equity
------------------------------------
Current liabilities:
Accounts payable and other accrued liabilities $ 8,235 $ 7,080
Note payable to bank 7,532 7,317
Customer deposits 567 54
Current portion of long-term debt 1,268 1,409
---------- ----------
Total current liabilities 17,602 15,860
---------- ----------
Long-term debt - notes payable, net of discount 17,203 17,582
Long-term debt - other 28 57
Deferred income taxes 1,793 1,793
Other non-current liabilities 770 721
Shareholders' equity:
Common stock
Par value $.10 per share; 18,000,000 shares authorized;
2,994,930 and 2,994,930 shares issued and outstanding 299 299
Additional capital 32,187 32,187
Cumulative translation adjustment 30 (14)
Accumulated deficit (19,890) (20,451)
Unearned stock option compensation (52) (70)
Treasury stock, at cost (213) (213)
----------- -----------
Total shareholders' equity 12,361 11,738
---------- ----------
Total liabilities and shareholders' equity $ 49,757 $ 47,751
========== ==========
</TABLE>
The accompanying notes are an integral part of these
consolidated financial statements.
4
<PAGE>
MERIDIAN MEDICAL TECHNOLOGIES, INC.
FORM 10-Q
MERIDIAN MEDICAL TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
January 31, January 31,
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net sales $ 12,066 $ 9,824 $ 23,821 $ 20,674
Cost of sales 7,296 7,422 14,363 14,095
--------- --------- -------- ---------
Gross profit 4,770 2,402 9,458 6,579
Selling, general, and administrative expenses 1,969 1,549 3,852 3,379
Research and development expenses 716 349 1,233 597
Depreciation and amortization 924 918 1,730 1,820
--------- --------- -------- ---------
3,609 2,816 6,815 5,796
--------- --------- -------- ---------
Operating income (loss) 1,161 (414) 2,643 783
Other (expense) income:
Interest expense (831) (819) (1,674) (1,667)
Other income (expense) 9 366 (49) 377
--------- --------- -------- ---------
(822) (453) (1,723) (1,290)
--------- --------- -------- ---------
Income (loss) before income taxes 339 (867) 920 (507)
Provision for income taxes 132 (93) 359 -
--------- --------- -------- ---------
Net income (loss) $ 207 $ (774) $ 561 $ (507)
========= ========= ======== ==========
Net income (loss) per share:
Basic $ .07 $ (.26) $ .19 $ (.17)
========= ========= ======== =========
Diluted $ .06 $ (.26) $ .17 $ (.17)
========= ========= ======== =========
Weighted average shares:
Basic 2,995 2,993 2,995 2,992
Diluted 3,228 2,993 3,209 2,992
</TABLE>
The accompanying notes are an integral part of these
consolidated financial statements.
5
<PAGE>
MERIDIAN MEDICAL TECHNOLOGIES, INC.
FORM 10-Q
MERIDIAN MEDICAL TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
<TABLE>
<CAPTION>
Six Months Ended
January 31,
2000 1999
---- ----
<S> <C> <C>
OPERATING ACTIVITIES:
Net income (loss) $ 561 $ (507)
Adjustments to reconcile net income (loss) to net
cash provided by (used for) operating activities:
Depreciation and amortization 1,730 1,820
Amortization of notes payable discount and deferred
financing fees 184 75
Changes in assets and liabilities
Receivables (783) (3,256)
Inventories (2,316) (401)
Other current assets 96 (118)
Accounts payable and other accrued liabilities 1,717 (879)
Other 92 333
---------- -----------
Net cash provided by (used for) operating activities 1,281 (2,933)
INVESTING ACTIVITIES
Purchase of fixed assets (571) (403)
Capitalized software costs - (696)
Increase in restricted cash (4) (4)
---------- -----------
Net cash used for investing activities (575) (1,103)
FINANCING ACTIVITIES
Net proceeds from line of credit 215 4,354
Payment on long-term debt (670) (207)
Payment of deferred financing fees (20) (30)
Proceeds from issuance of common stock - 13
---------- -----------
Net cash (used for) provided by financing activities (475) 4,130
---------- -----------
Net increase in cash 231 94
Cash at beginning of period 227 284
---------- -----------
Cash at end of period $ 458 $ 378
========== ===========
</TABLE>
The accompanying notes are an integral part of these
consolidated financial statements.
<PAGE>
MERIDIAN MEDICAL TECHNOLOGIES, INC.
FORM 10-Q
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. In the opinion of management, the accompanying unaudited consolidated
financial statements contain all adjustments (consisting of normal
recurring accruals) necessary to present fairly the Company's financial
position as of January 31, 2000 and July 31, 1999, the results of its
operations for the three-month and six-month periods ended January 31, 2000
and 1999, and its cash flows for the six-month periods ended January 31,
2000 and 1999. The results of operations for the three-month and six-month
periods ended January 31, 2000 are not necessarily indicative of the
results that may be expected for the fiscal year ending July 31, 2000.
Certain prior period amounts have been reclassified to conform to current
period presentation.
2. Inventories consisted of the following:
<TABLE>
<CAPTION>
January 31, July 31,
----------- --------
2000 1999
---- ----
<S> <C> <C>
Components and subassemblies $ 5,020 $ 3,667
Work in process 3,864 3,325
Finished goods 793 335
------------ ------------
9,677 7,327
Less: inventory valuation allowance (472) (438)
------------ ------------
$ 9,205 $ 6,889
============ ============
</TABLE>
3. A reconciliation of net income to comprehensive income is as follows:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
January 31, January 31,
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net income (loss) $ 207 $ (774) $ 561 $ (507)
Foreign exchange translation adjustment 27 167 44 227
--------- --------- -------- ---------
Comprehensive income (loss) $ 234 $ (607) $ 605 $ (280)
========= ========== ======== ==========
</TABLE>
7
<PAGE>
MERIDIAN MEDICAL TECHNOLOGIES, INC.
FORM 10-Q
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
The Quarter and Six Months in Review
MMT's net income was $207,000 ($.07 basic and $.06 diluted earnings per share)
on sales of $12.1 million for the quarter ended January 31, 2000, the second
quarter of fiscal 2000. This compares with a net loss of $774,000 ($0.26 basic
and diluted loss per share) on sales of $9.8 million in the same period of
fiscal 1999. On a year-to-date basis, MMT had net income of $561,000 ($.19 basic
and $.17 diluted earnings per share) on sales of $23.8 million, compared with a
net loss of $507,000 ($0.17 basic and diluted loss per share) on sales of $20.7
million in the same period of fiscal 1999.
Revenues of MMT's three areas of business and total gross profit for the
three-month and six-month periods ended January 31, 2000 and 1999 are as
follows:
<TABLE>
<CAPTION>
Three months ended January 31, Six months ended January 31,
------------------------------ ----------------------------
($thousands) 2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Drug Delivery Systems $ 4,800 $ 1,460 $ 10,923 $ 7,481
Government Systems 7,011 7,905 12,502 12,581
Cardiopulmonary Systems 255 459 396 612
------------- ------------- -------------- --------------
Total Revenues 12,066 9,824 23,821 20,674
============= ============= ============== ==============
Gross Profit $ 4,770 $ 2,402 $ 9,458 $ 6,579
============= ============= ============== ==============
Gross Profit % 39.5% 24.5% 39.7% 31.8%
</TABLE>
Drug Delivery Systems business revenue in the fiscal second quarter ended
January 31, 2000 was $4.8 million, $3.3 million higher than in the comparable
prior year period. The 229% increase in revenue resulted from higher sales of
EpiPens in the current quarter, compared to the same quarter in the prior year,
when free EpiPens were being supplied to fulfill obligations relating to the May
8, 1998 product recall. Year-to-date revenues were $10.9 million for the six
months ended January 31, 2000, compared to $7.5 million for the same period in
the prior year, reflecting the impact of the recall on 1999 revenues. The
Company believes demand for the EpiPen is strong and continues to expect sales
to reach a record level in fiscal 2000. FDA approval for the third generic drug
under the Mylan alliance was received in November 1999.
Government Systems revenues were $7.0 million in the second quarter of fiscal
2000, compared to $7.9 million in the prior year comparable period. The 11.3%
decrease in revenues resulted primarily from lower sales to the USDoD,
reflecting the timing of military procurements. Year-to-date Government Systems
revenues were $12.5 million for the six months ended January 31, 2000, compared
to $12.6 million for the same period of the prior year. The Company continues to
develop the multi-chambered auto-injector (MA), the next-generation military
drug delivery system. The MA features a dual chamber that allows the automatic
injection of two drugs in succession using the same device. A New Drug
Application (NDA) for the MA has been submitted to the FDA on behalf of the U.S.
Army. Production is anticipated to begin in the first half fiscal 2001, subject
to the requisite approvals and government purchase orders.
Cardiopulmonary Systems revenues were $255,000 in the current year fiscal second
quarter compared to $459,000 in the prior year. The lower revenues reflect the
timing of orders. Demand for telemedicine products is now increasing and advance
purchase orders have been received for the second half of fiscal 2000. The
telemedicine line of products includes devices designed to monitor a broad range
of physiologic parameters, primarily focused on blood pressure and ECG. Other
products monitor weight, oxygen content and pulmonary function. On a
year-to-date basis, revenues of $396,000 for the first six months of fiscal 2000
compare to $612,000 for fiscal 1999.
8
<PAGE>
MERIDIAN MEDICAL TECHNOLOGIES, INC.
FORM 10-Q
Progress continues on the PRIME ECG advanced electrocardiac mapping system. The
PRIME ECG is a unique, 80-lead electrocardiac mapping system that offers the
potential to significantly improve the diagnosis and treatment of heart disease.
Clinical trials began in November 1999 at the Medical College of Virginia, and
the Company intends to complete the trials and submit results to the FDA for
marketing approval by the end of calendar 2000. The Company has signed a
distribution agreement for Australia and is actively negotiating distribution
agreements with several companies to market the product in western Europe.
Gross profits were $4.8 million or 39.5% of revenues during the second quarter
of 2000, compared to $2.4 million or 24.5% for the same period of the prior
year. On a year-to-date basis, gross profit of $9.5 million or 39.7% of revenues
in 2000 compares to $6.6 million or 31.8% in 1999. Gross profits improved for
the quarter and year-to-date reflecting the return of EpiPen sales to historical
levels.
Operating costs were $3.6 million in the fiscal 2000 second quarter, compared to
$2.8 million incurred in the second quarter of last year. For the first six
months of the fiscal year, operating costs were $6.8 million compared to $5.8
million last year. Selling, general and administrative expenses (SG&A) were
$420,000 and $473,000 higher for the second quarter and year-to-date,
respectively, compared to prior year, due to the infrastructure investment to
support forecasted operations. R&D costs were also higher for the second quarter
and year-to-date compared to prior year due to certain costs relating to the
PRIME ECG project which qualified for capitalization in the prior year.
Investment in R&D continues to be an objective of the Company.
Interest expense was $831,000 in the second quarter of fiscal 2000, and $1.7
million year-to-date. This is consistent with the comparable periods of the
prior year, reflecting higher market interest rates, offset by lower average
debt balances.
The provision for income taxes in the second quarter of fiscal 2000 was
$132,000, continuing to reflect an estimated effective tax rate of 39% for the
year. The tax provision incorporates estimated benefits from utilization of
operating loss carryforwards, offset by permanent book to tax differences.
Liquidity and Capital Resources
Total cash as of January 31, 2000 was $458,000, an increase of $231,000 from the
prior year ended July 31, 1999. The Company provided $1.3 million from
operations in the first six months of fiscal 2000 attributable mostly to net
income and non-cash depreciation, as well as higher accounts payable, offset by
higher accounts receivable and inventories. Inventories increased $2.3 million
during the first six months of fiscal 2000 as the Company prepares to meet
strong order demand in the third and fourth quarters of fiscal 2000. Investing
activities in the six months of fiscal 2000 used $571,000 of cash for capital
additions. Financing activities used $475,000, primarily from net payments on
existing debt. Availability under the working lines of credit was $1.2 million
at January 31, 2000, which increased subsequent to quarter end due to the
collection of receivables.
Working capital at January 31, 2000 was $5.8 million, up from $4.4 million at
July 31, 1999. The increase was primarily attributable to higher inventories
($2.3 million), offset by higher accounts payable and other accrued liabilities
($1.2 million). At January 31, 2000, accounts receivable were $10.2 million,
representing 70 days-sales-outstanding, and inventories were $9.2 million
representing a turn-over rate of 3.6 times per year.
Year 2000
The Company successfully completed its program to address the Year 2000 (Y2K)
issue as outlined in its Form 10-K for the year ended July 31, 1999. As of the
date of this filing, the Company has experienced no significant adverse effects
on its business or operations as a result of the Year 2000.
9
<PAGE>
MERIDIAN MEDICAL TECHNOLOGIES, INC.
FORM 10-Q
ITEM 3. Quantitative and Qualitative Disclosure About Market Risk
The Company's earnings are affected by fluctuations in the value of the U.S.
dollar, as compared to foreign currencies, as a result of transactions in
foreign markets. At January 31, 2000, the result of a uniform 10% strengthening
or weakening in the value of the dollar relative to the currencies in which the
Company's transactions are denominated would have resulted in an immaterial
increase or decrease in operating income for the six months ended January 31,
2000. This calculation assumes that each exchange rate would change in the same
direction relative to the U.S. dollar. In addition to the direct effects of
changes in exchange rates, which are a changed dollar value of the resulting
sales, changes in exchange rates also affect the volume of sales or the foreign
currency sales price as competitors' services become more or less attractive.
The Company's sensitivity analysis of the effects of changes in foreign currency
exchange rates does not factor in a potential change in sales levels or local
currency prices.
While the Company is exposed to changes in interest rates as a result of its
outstanding debt, the Company does not currently utilize any derivative
financial instruments related to its interest rate exposure. Total short-term
and long-term debt outstanding at January 31, 2000 was $26.0 million, consisting
of $11.4 million in variable rate borrowing and $14.6 million in fixed rate
borrowing. At this level of variable rate borrowing, a hypothetical 10% increase
in interest rates would have decreased pre-tax earnings by approximately $57,000
for the six months ended January 31, 2000. At January 31, 2000, the fair value
of the Company's fixed rate debt outstanding was estimated at $15.0 million. A
hypothetical 10% change in interest rates would not result in a material change
in the fair value of the Company's fixed rate debt.
PART II - OTHER INFORMATION
ITEM 4. Submission of Matters to a Vote of Security Holders
The Company held its annual meeting of stockholders on January 11, 2000 (the
"Annual Meeting"). A total of 2,418,259 shares of common stock were represented
at the Annual Meeting in person or by proxy. The stockholders voted to reelect
James H. Miller as a director with 2,393,274 votes cast for the nominee and
25,335 withheld. The stockholders voted to reelect Robert G. Foster as a
director with 2,406,823 votes cast for the nominee and 11,786 withheld. Bruce M.
Dresner, E. Andrews Grinstead, III and David L. Lougee remained in office as
continuing directors following the meeting. Finally, the stockholders voted to
ratify the selection by the Board of Directors of Ernst & Young LLP as
independent auditors of the Company for the fiscal year with 2,415,720 votes
cast for ratification, 2,219 votes against, and 370 abstentions or
broker-nonvotes.
ITEM 6. Exhibits and Reports on Form 8-K:
(a) Exhibits
Exhibit 27 Financial Data Schedule
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the three months ended January
31, 2000.
10
<PAGE>
MERIDIAN MEDICAL TECHNOLOGIES, INC.
FORM 10-Q
SIGNATURES
Pursuant to the requirement 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.
MERIDIAN MEDICAL TECHNOLOGIES, INC.
-----------------------------------
Registrant
February 28, 2000 By: /S/James H. Miller
----------------- ------------------------------
Date James H. Miller
President and
Chief Executive Officer
(Principal Executive Officer)
February 28, 2000 By: /S/Dennis P. O'Brien
----------------- ------------------------------
Date Dennis P. O'Brien
Vice President-Finance
and Chief Financial Officer
(Principal Financial and
Accounting Officer)
11
<PAGE>
MERIDIAN MEDICAL TECHNOLOGIES, INC.
FORM 10-Q
EXIBIT INDEX
Exhibit No. Description of Exhibit
- ----------- ----------------------
(27.0) Financial Data Schedule
12
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
ACCOMPANYING FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000095676
<NAME> Meridian Medical Technologies, Inc.
<MULTIPLIER> 1,000
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUL-31-2000
<PERIOD-START> AUG-01-1999
<PERIOD-END> JAN-31-2000
<EXCHANGE-RATE> 1
<CASH> 740
<SECURITIES> 0
<RECEIVABLES> 10,806
<ALLOWANCES> 557
<INVENTORY> 9,205
<CURRENT-ASSETS> 23,380
<PP&E> 21,978
<DEPRECIATION> (6,554)
<TOTAL-ASSETS> 49,757
<CURRENT-LIABILITIES> 17,602
<BONDS> 17,203
0
0
<COMMON> 299
<OTHER-SE> 12,062
<TOTAL-LIABILITY-AND-EQUITY> 49,757
<SALES> 23,821
<TOTAL-REVENUES> 23,821
<CGS> 14,363
<TOTAL-COSTS> 14,363
<OTHER-EXPENSES> 6,815
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,674
<INCOME-PRETAX> 920
<INCOME-TAX> 359
<INCOME-CONTINUING> 561
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 561
<EPS-BASIC> 0.19
<EPS-DILUTED> 0.17
</TABLE>
