-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ru2mfp4RT8Rjk1ZFuEmriho0dBVJA3YViFRr5PlQK7Wl3Fyn405pkmfmIZwvK36D ZCjZMov2uueBpVbRYsnqdA== 0000801558-00-000001.txt : 20000215 0000801558-00-000001.hdr.sgml : 20000215 ACCESSION NUMBER: 0000801558-00-000001 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19991231 FILED AS OF DATE: 20000214 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CANNON EXPRESS INC CENTRAL INDEX KEY: 0000801558 STANDARD INDUSTRIAL CLASSIFICATION: TRUCKING (NO LOCAL) [4213] IRS NUMBER: 710650141 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-13917 FILM NUMBER: 541975 BUSINESS ADDRESS: STREET 1: 1457 ROBINSON STREET 2: P O BOX 364 CITY: SPRINGDALE STATE: AR ZIP: 72765 BUSINESS PHONE: 5017519209 MAIL ADDRESS: STREET 1: PO BOX 364 STREET 2: PO BOX 364 CITY: SPRINGDALE STATE: AR ZIP: 72765 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ( X )QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 1999 ( )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. 0-16386 CANNON EXPRESS, INC. (Exact name of registrant as specified in its charter) Delaware 71-0650141 (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 1457 Robinson P.O. Box 364 Springdale, Arkansas 72765 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (501) 751-9209 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 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 of $.01 par value common stock outstanding at February 4, 2000: 3,192,861 INDEX CANNON EXPRESS, INC. and SUBSIDIARIES PART 1 -- FINANCIAL INFORMATION ITEM 1 -- Financial Statements (Unaudited) Consolidated Balance Sheets as of December 31, 1999 and June 30, 1999...............................1 Consolidated Statements of Income and Retained Earnings for the Three Months and Six Months Ended December 31, 1999 and 1998.....3 Consolidated Statements of Cash Flows for the Six Months Ended December 31, 1999 and 1998......................4 Notes to Consolidated Financial Statements.................................5 ITEM 2 -- Management's Discussion and Analysis of Financial Condition and Results of Operations......................................6 PART II -- OTHER INFORMATION ITEM 1 -- Legal Proceedings ...............................................* ITEM 2 -- Changes in Securities............................................* ITEM 3 -- Defaults Upon Senior Securities..................................* ITEM 4 -- Submission of Matters to a Vote of Security-Holders.............10 ITEM 5 -- Other Information................................................* ITEM 6 -- Exhibits and Reports on Form 8-K................................10 *No information submitted under this caption. PART 1. ITEM 1. Financial Statements (Unaudited) Cannon Express, Inc. and Subsidiaries Consolidated Balance Sheets December 31 June 30 1999 1999 (Unaudited) (Note) Assets Current assets: Cash and cash equivalents $8,366,607 $9,683,794 Receivables, net of allowance for doubtful accounts (December 31, 1999-$222,405; June 30, 1999-$199,579): Trade 10,943,864 8,896,331 Other 977,073 1,963,418 Current portion of net investment in sales-type leases 9,482,733 - Prepaid expenses and supplies 2,049,729 1,627,778 Deferred income taxes 1,973,000 1,907,000 Total current assets 33,793,006 24,078,321 Property and equipment: Land, buildings and improvements 1,238,523 1,230,945 Revenue equipment 57,958,532 80,264,223 Service, office and other equipment 2,960,486 2,885,076 62,157,541 84,380,244 Less allowances for depreciation 23,990,283 35,918,227 38,167,258 48,462,017 Other assets: Receivable from stockholders 23,406 23,406 Restricted cash 2,381,084 2,381,084 Marketable securities 542,550 593,110 Net investment in sales-type leases, less current portion 18,965,467 - Other 288,223 429,815 Total other assets 22,200,730 3,427,415 $94,160,994 $75,967,753 Note: The balance sheet at June 30, 1999 has been derived from the audited consolidated balance sheet at that date but it does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. See notes to consolidated financial statements. Cannon Express, Inc. and Subsidiaries Consolidated Balance Sheets (Continued) December 31 June 30 1999 1999 (Unaudited) (Note) Liabilities and stockholders' equity Current liabilities: Trade accounts payable $1,330,594 $1,849,931 Accrued expenses: Insurance reserves 3,684,874 3,295,528 Other 5,151,821 2,246,756 Federal and state income taxes payable 1,995,993 2,707,890 Current portion of long-term debt 13,345,022 16,861,875 Total current liabilities 25,508,304 26,961,980 Long-term debt, less current portion 46,072,865 25,999,343 Deferred income taxes 4,269,000 4,809,000 Other liabilities 20,050 27,569 Stockholders' equity: Common stock: $.01 par value; authorized 10,000,000 shares; issued 3,252,986 shares 32,654 32,654 Additional paid-in capital 3,747,575 3,747,575 Retained earnings 14,884,732 14,709,630 Unrealized depreciation on marketable securities, net of income taxes (173,922) (119,734) 18,491,039 18,370,125 Less treasury stock, at cost (60,125 shares) 200,264 200,264 18,290,775 18,169,861 $94,160,994 $75,967,753 Note: The balance sheet at June 30, 1999 has been derived from the audited consolidated balance sheet at that date but it does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. See notes to consolidated financial statements. Cannon Express, Inc. and Subsidiaries Consolidated Statements of Income and Retained Earnings Three Months Ended Six Months Ended December 31 December 31 1999 1998 1999 1998 (Unaudited) (Unaudited) Operating revenue $21,290,792 $24,091,602 $44,206,225 $48,754,019 Operating expenses and costs: Salaries, wages and fringe benefits 6,245,036 9,489,795 13,542,986 18,145,892 Operating supplies and expenses 4,878,073 7,359,623 10,913,324 15,232,271 Taxes and licenses 1,014,838 1,451,409 2,140,407 2,766,816 Insurance & claims 1,269,907 1,419,018 2,759,861 2,267,059 Depreciation and amortization 774,500 2,483,914 1,521,986 5,934,833 Rents and purchased transportation 6,776,925 880,475 11,578,737 1,979,096 Other 768,137 546,917 1,501,131 1,121,557 21,727,416 23,631,151 43,958,432 47,447,524 Operating income (loss) (436,624) 460,451 247,793 1,306,495 Other income(expense) Interest expense (843,903) (748,908) (1,495,372) (1,561,276) Other income 76,526 60,317 182,681 127,833 (767,377) (688,591) (1,312,691) (1,433,443) Income (loss) before income taxes (1,204,001) (228,140) (1,064,898) (126,948) Federal and state income taxes Current 277,000 820,000 163,000 1,342,000 Deferred (1,155,000) (908,000) (1,403,000) (1,391,000) (878,000) (88,000) (1,240,000) (49,000) Net income (loss) (326,001) (140,140) 175,102 (77,948) Retained earnings at beginning of period 15,210,733 15,259,206 14,709,630 15,197,014 Retained earnings at end of period $14,884,732 $15,119,066 $14,884,732 $15,119,066 Basic earnings (loss) per share ($0.10) ($0.04) $0.05 ($0.02) Average shares outstanding 3,205,276 3,192,861 3,205,276 3,192,861 Diluted earnings (loss) per share ($0.10) ($0.04) $0.05 ($0.02) Diluted shares outstanding 3,205,276 3,219,236 3,209,069 3,232,057 See notes to consolidated financial statements. Cannon Express, Inc. and Subsidiaries Consolidated Statements of Cash Flows Six Months Ended December 31 1999 1998 (Unaudited) Operating activities Net income (loss) $ 175,102 $ (77,948) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 3,974,200 6,975,842 Provision for losses on accounts receivable 30,000 30,000 Benefit for deferred income taxes (1,436,000) (1,391,000) Gain on disposal of equipment (2,450,013) (1,041,008) Changes in operating assets and liabilities: Accounts receivable (1,091,188) (1,031,649) Prepaid expenses and supplies (421,951) 540,399 Accounts payable, accrued expenses, taxes payable, and other liabilities (1,147,901) 854,159 Other assets 2,243,180 - Net cash provided by (used in) operating activities (124,571) 4,858,795 Investing activities Purchases of property and equipment (3,682,474) (114,290) Investment in outside driver training facility (37,550) (280,000) Net increase in restricted cash - (564) Proceeds from equipment sales 12,612,140 2,306,120 Net cash provided by investing activities 8,892,116 1,911,266 Financing activities Proceeds from long-term borrowing 3,599,485 5,500,000 Principal payments on long-term debt and capital lease obligations (13,684,217) (6,410,791) Net cash used in financing activities (10,084,732) (910,791) Increase (decrease) in cash and cash equivalents (1,317,187) 5,859,270 Cash and cash equivalents at beginning of period 9,683,794 3,817,505 Cash and cash equivalents at end of period $ 8,366,607 $ 9,676,775 See notes to consolidated financial statements. Notes to Consolidated Financial Statements (Unaudited) Note A - Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10 - Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three month and six month periods ended December 31, 1999 are not necessarily indicative of the results that may be expected for the year ended June 30, 2000. For further information, refer to the Company.s consolidated financial statements and notes thereto included in its Form 10 - K for the fiscal year ended June 30, 1999. Note B - Net Income Per Share Three Months Ended Six Months Ended December 31 December 31 1999 1998 1999 1998 (Unaudited) (Unaudited) Average shares outstanding 3,205,276 3,192,861 3,205,276 3,192,861 Net effect of dilutive stock options - 26,375 3,793 39,196 Diluted shares outstanding 3,205,276 3,219,236 3,209,069 3,232,057 Net income (loss) for the period ($326,001) ($140,140) $175,102 ($77,948) Basic earnings (loss) per share ($.10) ($.04) $.05 ($.02) Diluted earnings (loss) per share ($.10) ($.04) $.05 ($.02) Note C - Legal Proceedings The Company is a party to routine litigation incidental to its business, primarily involving claims for personal injuries and property damage incurred in the transportation of freight. Management believes that adverse results in one or more of these cases would not have a material adverse effect on profitability or financial position. Additionally, the Company has been charged by the Equal Employment Opportunity Commission ("EEOC") with discriminatory hiring practices. The Company is unable to predict the final outcome of this charge or the range of any possible penalties imposed. ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Results of Operations -- Second Quarter Operating revenue for the second quarter of fiscal 2000 (ended December 31, 1999) was $21,290,792 compared to $24,091,602 for the second quarter of fiscal 1999, representing a decrease of $2,800,810 or 11.6% for the period. At December 31, 1999, the Company's fleet consisted of 728 trucks and 2,165 trailers, while on December 31, 1998, the Company's fleet consisted of 848 trucks and 2,345 trailers. Logistics and intermodal revenue for the second quarter of fiscal 2000 increased by $718,719 from $861,649 for the second quarter of fiscal 1999 to $1,580,368 for the same period of fiscal 2000. The Company's revenue continued to be negatively impacted by a shortage of qualified drivers to operate its trucks during the second quarter of fiscal 2000. The Company traded in some of its trucks early due to the driver shortage and is replacing its older trucks with new trucks emphasizing driver comfort and convenience. In January of 2000 the Company implemented an increase in drivers' starting base pay ranging from 2 to 4 cents per mile. The Company believes that it may be necessary to provide additional pay increases for its drivers in the future. Salaries, wages, and fringe benefits, made up primarily of drivers. wages, decreased as a percentage of revenue to 29.3% in the second quarter of fiscal 2000 from 39.4% in the second quarter of fiscal 1999. This decrease was largely due to the Company's smaller fleet and to the Company's implementation of its lease program for owner operators. Company drivers were awarded approximately $163,000 in bonuses for the three-month period ended December 31, 1999 as compared with $256,000 awarded during the three-month period ended December 31, 1998. Additionally, an annual safety bonus of $265,000 was paid in December 1999, as compared to $337,000 paid in December 1998. Operating supplies and expenses, as a percentage of revenue, decreased to 22.9% in the second quarter of fiscal 2000 from 30.5% in the comparable period of fiscal 1999. Operating taxes and licenses also decreased to 4.8% of revenue in fiscal 2000 from 6.0% in fiscal 1999. Insurance and claims were 6.0% of revenue in fiscal 2000, increasing from 5.9% of revenue in fiscal 1999. Depreciation and amortization decreased to 3.6% of revenue in fiscal 2000 from 10.3% in the same period of fiscal 1999. This decrease was due to a gain on sale of equipment of $1,137,700 which was realized in the second quarter of fiscal 2000 as compared to a gain of $975,670 in the second quarter of 1999. Rents and purchased transportation increased to 31.8% of revenue in fiscal 2000 from 3.7% in fiscal 1999 primarily due to payments made to the Company's owner operators and to increased logistics activities. Operating revenue for the second quarter of 2000 decreased by 11.6% over the comparable period of 1999, while operating expenses decreased by $1,903,735 or 8.1%. Accordingly, the Company.s operating ratio increased to 102.1% in the second fiscal quarter of 2000 from 98.1% in the same period of fiscal 1999. Interest expense increased to 4.0% of revenue in the second quarter of fiscal 2000 from 3.1% recorded in the second quarter of fiscal 1999 due to the increase in long term debt. ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations - Cont'd The Company recognized a previously unrealized tax benefit, the result of a revenue equipment leasing transaction entered into during fiscal year 1995. Consequently, the Company recognized a deferred income tax credit of $415,000 during the quarter ended December 31, 1999. During fiscal 1998, income tax consequences of certain equipment leasing transactions were recorded in the financial statements in reliance on opinion of tax counsel. Net loss for the second quarter of fiscal 2000 ended December 31, 1999 was ($326,001) ($.10 loss per share) compared to net loss of ($140,140) ($.04 loss per share) during the comparable period of fiscal 1999, a decrease of $185,861 or 132.6% for the period. Results of Operations - Six Month Period Operating revenue for the first six months of fiscal 2000 ended December 31, 1999 was $44,206,225 compared to $48,754,019 for the comparable period of fiscal 1999, representing a decrease of $4,547,794 or 9.3%. Logistics and intermodal revenue for the six-month period of fiscal 2000 increased by $1,898,494 over the comparable period in fiscal 1999. As in the three-month period, a continued shortage of qualified drivers impaired the Company's ability to produce revenue. Salaries, wages, and fringe benefits decreased to 30.6% of revenue in the six-month period of fiscal 2000 from the 37.2% reported in the six-month period of fiscal 1999. Operating supplies and expenses decreased to 24.7% of revenue in fiscal 2000 from 31.2% in fiscal 1999. Taxes and licenses decreased to 4.8% of revenue during fiscal 2000 from 5.7% in fiscal 1999. Insurance and claims were 6.2% of revenue in fiscal 2000, increasing from 4.6% of revenue in fiscal 1999. Depreciation and amortization, as a percentage of revenue, decreased to 3.4% of revenue in fiscal 2000 from 12.2% in the same period of fiscal 1999. This decrease was due to a gain on sale of equipment of $2,450,013 which was realized in the six-month period of fiscal 2000 as compared to a gain of $1,041,008 in the six-month period of 1999. Rents and purchased transportation increased to 26.2% of revenue in the first six months of fiscal 2000 from 4.1% during the comparable period of fiscal 1999. As was the case in the three-month period, this increase was caused primarily by payments made to the Company's owner operators and by increased logistics activities. Operating revenue for the first six months of 2000 decreased by 9.3% over the comparable period of 1999, while operating expenses decreased by $1,058,702 or 81.0%. Accordingly, the Company's operating ratio increased to 99.4% for the first six months of 2000 from 97.3% in the same period of fiscal 1999. Interest expense increased to 3.4% of revenue in the first six months of fiscal 2000 from 3.2% recorded in the first six months of fiscal 1999. The Company recognized a previously unrealized tax benefit, the result of a revenue equipment leasing transaction entered into during fiscal year 1995. Consequently, the Company recognized a deferred income tax credit of $830,000 during the six-month period ended December 31, 1999. ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations-Cont'd Net income for the first six months of fiscal 2000 ended December 31, 1999 was $175,102 ($.05 earnings per diluted share) compared to net loss of ($77,948) ($.02 loss per share) during the comparable period of fiscal 1999, an increase of $253,050 for the six-month period. Fuel Cost and Availability The Company, and the motor carrier industry as a whole, is dependent upon the availability and cost of diesel fuel. Fuel costs continued to increase in the second quarter of fiscal 2000, averaging 26 cents per gallon higher than in the same quarter of fiscal 1999. For the six months period ended December 31, 1999, the average cost per gallon was 22 cents higher than in the same period of fiscal 1999. Although average price per gallon was higher, the Company's total cost of fuel decreased due to the smaller fleet and because owner operators are responsible for purchasing their own fuel. Although the Company has currently implemented fuel surcharges for its customers, there is no assurance that any future increases in fuel costs can be passed through to the Company's customers. Historically, increases in fuel costs have been passed through to the Company's customers, either in the form of fuel surcharges, or if deemed permanent in nature, through increased rates. Further cost increases or shortages of fuel could affect the Company's future profitability. Liquidity and Capital Resources The Company's primary sources of liquidity have been cash flows generated from operations and proceeds from borrowings. The Company typically extends credit to its customers, billing freight charges after delivery. Accordingly, the ability of the Company to generate cash to satisfactorily meet its ongoing cash needs is substantially dependent upon timely payment by its customers. The Company has not experienced significant uncollectible accounts receivable. Operating activities used cash flows of $.1 million for the first six months of fiscal 2000 compared to $4.9 million provided during the same period of fiscal 1999. Cash flows from operations in the first two quarters of fiscal 2000 were the result of $.2 million net income, $4.0 million in depreciation offset by $2.5 million from gain on sale of equipment, and $1.8 million used in other working capital assets and liabilities. Investing activities provided net cash of $8.9 million during the first six months of fiscal 2000 compared to $1.9 million net cash used in the same period of fiscal 1999. Financing activities used net cash of $10.1 million during the first two quarters of fiscal 2000 compared to $1.0 million in fiscal 1999. The Company's working capital increased by $11.2 million to $8.3 million at December 31, 1999 from a deficit of $2.9 million at June 30, 1999. Approximately $9.5 million of this increase is due to the net investment in sales-type leases resulting from the owner-operator program. Historically, working capital needs have been met from cash generated from operations. Management believes that the Company's working capital is sufficient for its short-term needs. ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations-Cont'd Like other truckload carriers, the Company experiences significant driver turnover. Management anticipates that competition for qualified drivers will intensify. The Company seeks to attract drivers by advertising job openings, encouraging referrals from existing employees and providing a training program for applicants whose experience does not meet the Company's minimum requirements, however, no assurance can be made that the Company will not continue to experience a shortage of drivers in the future. The Company was caught in a cycle of large demand for new trucks and long lead times for new truck orders. Due to the manufacturer's lead time for new trucks, the Company was unable to secure any replacement trucks on schedule and was forced to make expensive non-warranty repairs to its older equipment. During the first six months of fiscal 2000, the Company has taken delivery of 408 new trucks and has sold 408 trucks, causing no change in its fleet of 728 at December 31, 1999. The sale of these trucks resulted in a gain of approximately $1,650,000. The Company has entered into an agreement to purchase 390 new trucks for its fleet with deliveries beginning in January of 2000 and continuing through October of 2000. The cost of the new trucks, net of trade-ins, will be approximately $20,088,000. The new truck specifications include features that afford the driver a higher level of comfort and appeal than the older models being traded in. Management believes that these new trucks, when placed in service, will reduce maintenance costs and time lost for repairs. In order to improve its operating results, the Company has implemented a new program in which owner-operators may qualify to lease/purchase a truck and be paid a percentage of the Company's revenue to operate it under a contract with the Company to haul freight for its customers. Management believes that an owner-operator fleet will improve results in the Company's driver retention efforts. Additionally, certain costs associated with truck ownership will pass from the Company to the owner-operator. During the first six months of fiscal 2000, the Company also sold 149 of its 48 foot trailers resulting in a gain of approximately $800,000. The Company plans to convert the majority of its trailer fleet to 53 foot trailers in the future in order to allow it to compete for freight from the increasing number of customers who require 53 foot trailers for some or all of their shipments. The Company has entered into an agreement to purchase 200 new 53 foot trailers beginning in March of 2000. The Company currently owns and operates 896 of the 53 foot trailers and 1,269 of the 48 foot trailers. Forward-Looking Statements This report contains forward-looking statements that are based on assumptions made by management from information currently available to management. These statements address future plans, expectations and events or conditions concerning various matters such as the results of the Company's sales efforts as set forth in the discussion of results of operations, capital expenditures, litigation and capital resources, and accounting matters. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, actual results could differ materially from those currently reported. ITEM 3. Quantitative and Qualitative Disclosure about Market Risk The Company is exposed to cash flow and interest rate risk due to changes in interest rates with respect to its long-term debt. See Note 2 to the Consolidated Financial Statements in the Company's Annual Report for fiscal year ended June 30, 1999 for details on the Company's long-term debt. PART II OTHER INFORMATION ITEM 1. Legal Proceedings The Company is a party to routine litigation incidental to its business, primarily involving claims for personal injuries and property damage incurred in the transportation of freight. Management believes that adverse results in one or more of these cases would not have a material adverse effect on profitability or financial position. Additionally, the Company has been charged by the Equal Employment Opportunity Commission ("EEOC" ) with discriminatory hiring practices. The Company is unable to predict the final outcome of this charge or the range of any possible penalties imposed. ITEM 4. Submission of Matters to a Vote of Security Holders On November 16, 1999, the Annual Meeting of Stockholders was held in Springdale, Arkansas. The only matter submitted to a vote of the stockholders was the reelection of Dean G. Cannon, Rose Marie Cannon, Uvalde R. Lindsey, and Roy E. Stanley to the Company's current Board of Directors whose terms expired in 1999. Over 99% of the shares present or represented by proxy were voted in favor of management's nominees. ITEM 6. Exhibits and Reports on Form-8K No reports on Form 8-K were filed during the three months ended December 31, 1999. 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. CANNON EXPRESS, INC. (Registrant) Date: February 14, 2000 /s/ Dean G. Cannon President, Chairman of the Board, Chief Executive Officer and Chief Accounting Officer Date: February 14, 2000 /s/ Rose Marie Cannon Secretary, Treasurer and Director EX-27 2
5 6-MOS JUN-30-2000 DEC-31-1999 8,366,607 542,550 12,143,342 222,405 0 33,793,006 62,157,541 23,990,283 94,160,994 25,508,304 0 0 0 32,654 0 94,160,994 44,206,225 44,206,225 0 43,958,432 0 0 1,495,372 (1,064,898) (1,240,000) 0 0 0 0 175,102 .05 .05
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