-----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, H5FYlISg6aoLkO2XWMSedHZxH6Z7nz3iTtphNCIYUSH4F/yMSiG+70n+wZnr+4/A XappcpbpI1MwnXPqhVDl9g== 0000893816-97-000018.txt : 19970918 0000893816-97-000018.hdr.sgml : 19970918 ACCESSION NUMBER: 0000893816-97-000018 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970731 FILED AS OF DATE: 19970915 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: COMPUTER OUTSOURCING SERVICES INC CENTRAL INDEX KEY: 0000893816 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROCESSING & DATA PREPARATION [7374] IRS NUMBER: 133252333 STATE OF INCORPORATION: NY FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-20824 FILM NUMBER: 97680303 BUSINESS ADDRESS: STREET 1: 360 WEST 31ST ST STREET 2: 11TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10001 BUSINESS PHONE: 2125643730 10QSB 1 U. S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-QSB QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: July 31, 1997 Commission file number: 0-20824 COMPUTER OUTSOURCING SERVICES, INC. (Exact name of small business issuer as specified in its charter) New York 13-3252333 (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) 360 West 31st Street New York, New York 10001 (Address of principal executive offices) (212) 564-3730 (Issuer's telephone number) Check whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act 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 [ ] There were 3,789,850 shares of the registrant's Common Stock, $0.01 par value, outstanding as of September 12, 1997. Transitional Small Business Disclosure Form (check one); Yes [ ] No [X] Page 1 of 14 PART I - FINANCIAL INFORMATION ITEM 1. Financial Statements COMPUTER OUTSOURCING SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS July October 31, 1997 31, 1996 ------------- ------------- (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents ................... $ 394,651 $ 1,083,545 Trade accounts receivable, net of allowance for doubtful accounts of $364,545 and $305,874 .................................. 4,424,040 3,716,343 Refundable income taxes ..................... 90,928 62,988 Prepaid expenses ............................ 822,894 699,005 Other current assets ........................ 304,548 125,850 ---------- ---------- 6,037,061 5,687,731 ---------- ---------- PROPERTY and EQUIPMENT, net ................... 3,021,177 3,132,847 ---------- ---------- OTHER ASSETS: Deferred software costs, net ................ 2,321,603 1,912,505 Intangibles, net ............................ 7,644,195 7,764,535 Due from related parties, net ............... 135,843 106,472 Security deposits and other non-current assets .................................... 646,870 705,307 ---------- ---------- 10,748,511 10,488,819 ---------- ---------- TOTAL ASSETS .................................. $ 19,806,749 $ 19,309,397 ========== ========== See Notes to Consolidated Interim Financial Statements Page 2 of 14 COMPUTER OUTSOURCING SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Continued) July October 31, 1997 31, 1996 ------------- ------------- (Unaudited) LIABILITIES and STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable ............................ $ 1,545,412 $ 1,535,816 Revolving line of credit (Note 2) ........... 500,000 - Current portion of long-term debt ........... 819,004 1,054,352 Current portion of capitalized lease obligations ............................... 197,075 195,979 Accrued expenses and taxes .................. 1,632,114 1,757,355 Customer deposits and other current liabilities ............................... 207,729 282,075 ---------- ---------- 4,901,334 4,825,577 ---------- ---------- LONG-TERM LIABILITIES: Long-term debt .............................. 1,190,513 1,629,234 Capitalized lease obligations ............... 226,012 284,775 Deferred income taxes ....................... 1,014,495 837,219 Deferred rental credit ...................... 142,413 - Stock option obligation ..................... - 133,146 ---------- ---------- 2,573,433 2,884,374 ---------- ---------- STOCKHOLDERS' EQUITY: Preferred stock, $0.01 par value; 1,000,000 shares authorized, none issued ............ - - Common stock, $0.01 par value; 7,000,000 shares authorized; shares issued and out- standing, 3,789,850 and 3,734,848.......... 37,898 37,348 Additional paid-in capital .................. 9,445,683 9,233,952 Retained earnings ........................... 2,857,184 2,363,278 Deferred costs arising from a financing and consulting agreement .................. (8,783) (35,132) ----------- ----------- 12,331,982 11,599,446 ---------- ---------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY .... $ 19,806,749 $ 19,309,397 ========== ========== See Notes to Consolidated Interim Financial Statements Page 3 of 14 COMPUTER OUTSOURCING SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Nine Months Ended Three Months Ended July 31, July 31, -------------------------- -------------------------- 1997 1996 1997 1996 ------------ ------------ ------------ ------------ REVENUES ........... $ 24,289,530 $ 21,576,396 $ 8,118,468 $ 7,259,305 ---------- ---------- ---------- ---------- COSTS and EXPENSES: Data processing costs .......... 16,211,149 13,456,003 5,461,668 4,536,229 Selling and promotion costs 1,937,622 1,887,842 609,063 531,248 General and administrative expenses ....... 5,074,895 5,493,559 1,673,923 1,944,477 Interest expense, net of interest income ......... 209,964 257,207 67,915 75,962 ---------- ---------- ---------- ---------- 23,433,630 21,094,611 7,812,569 7,087,916 ---------- ---------- ---------- ---------- INCOME BEFORE PROVISION FOR INCOME TAXES ..... 855,900 481,785 305,899 171,389 PROVISION FOR INCOME TAXES ............ 342,400 235,000 122,000 81,015 ---------- ---------- ---------- ---------- NET INCOME ......... $ 513,500 $ 246,785 $ 183,899 $ 90,374 ========== ========== ========== ========== INCOME PER COMMON SHARE AND SHARE EQUIVALENTS ...... $ 0.13 $ 0.06 $ 0.05 $ 0.02 ========== ========== ========== ========== WEIGHTED AVERAGE NUMBER OF COMMON SHARES AND SHARE EQUIVALENTS OUTSTANDING ...... 3,929,188 3,799,739 3,980,807 3,869,360 ========== ========== ========== ========== See Notes to Consolidated Interim Financial Statements Page 4 of 14 COMPUTER OUTSOURCING SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended July 31, ------------------------------ 1997 1996 ------------- ------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income..................................... $ 513,500 $ 246,785 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization ............... 1,726,280 1,452,940 Deferred income taxes ....................... 177,276 158,804 Decrease/(increase) in: Trade accounts receivable ................. (732,892) 228,282 Refundable taxes .......................... (27,940) 285,674 Prepaid expenses .......................... (123,889) (170,590) Other current assets ...................... (178,698) 82,384 Security deposits and other noncurrent assets .................................. (179,263) 8,677 Increase/(decrease) in: Accounts payable .......................... (994) 197,731 Accrued expenses and taxes ................ (101,846) (427,577) Customer deposits and other current liabilities ............................. (74,346) 59,619 ---------- ---------- Net cash provided by operating activities ... 997,188 2,122,729 ---------- ---------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment .......... (440,574) (465,047) Disposal of equipment ....................... 2,074 60,992 Settlement of contingencies relating to acquisitions ............................. (36,762) (111,607) Increase in deferred software costs ......... (744,920) (804,764) ----------- ----------- Net cash used in investing activities ....... $ (1,220,182) $ (1,320,426) ----------- ----------- Continued on Next Page See Notes to Consolidated Interim Financial Statements Page 5 of 14 COMPUTER OUTSOURCING SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited - Continued) Nine Months Ended July 31, ------------------------------ 1997 1996 ------------- ------------- CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of long-term debt ................. $ (814,872) $ (1,314,516) Proceeds from borrowings under the revolving line of credit ............................ 500,000 - Proceeds from issuance of long-term debt .... - 268,173 Repayments of amounts by related parties, net .............................. 22,733 50,391 Repayments of capital leases ................ (173,761) (151,229) ----------- ----------- Net cash used in financing activities ....... (465,900) (1,147,181) ----------- ----------- Net decrease in cash and cash equivalents ... (688,894) (344,878) Cash and cash equivalents at the beginning of the period.............................. 1,083,545 1,406,016 ---------- ---------- Cash and cash equivalents at the end of the period..................................... $ 394,651 $ 1,061,138 ========== ========== SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid during the period for: Interest .................................. $ 236,903 $ 293,549 ========== ========== Income taxes .............................. $ 91,958 $ 49,747 ========== ========== SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: New capitalized leases for data processing equipment ................................. $ 122,300 $ 135,202 ========== ========== For the nine months ended July 31, 1997 and 1996, $19,594 and $35,109 (net of tax benefits), respectively, were accreted through a charge to retained earnings in connection with a stock option. See Notes to Consolidated Interim Financial Statements Page 6 of 14 COMPUTER OUTSOURCING SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY NINE MONTHS ENDED JULY 31, 1997 (Unaudited) Deferred Costs in Connection with a Financing/ Common Par Paid in Retained Consulting Shares Value Capital Earnings Agreement Total ------------------------------------------------------------------ Balances, October 31, 1996 ..... 3,734,848 $37,348 $9,233,952 $2,363,278 $(35,132) $11,599,446 Common Stock issued in connection with a covenant not to compete .. 15,000 150 54,225 54,375 Exercises of stock option ... 40,002 400 157,506 157,906 Amortization of deferred costs in connection with a financing and consulting agreement 26,349 26,349 Accretion in connection with stock option obligation, net ...... (19,594) (19,594) Net income . 513,500 513,500 ------------------------------------------------------------------ Balances, July 31, 1997 ..... 3,789,850 $37,898 $9,445,683 $2,857,184 $ (8,783) $12,331,982 ================================================================== See Notes to Consolidated Interim Financial Statements Page 7 of 14 COMPUTER OUTSOURCING SERVICES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS 1. BASIS OF PRESENTATION The Consolidated Balance Sheet as of July 31, 1997, and the Consolidated Statements of Income and the Consolidated Statements of Cash Flows for the nine month periods ended July 31, 1997 and 1996, have been prepared by the Company without audit. In the opinion of management, all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows for the periods indicated have been made. The results of operations for the periods ended July 31, 1997 and 1996 are not necessarily indicative of the operating results for the full fiscal years. Certain reclassifications have been made to the prior periods to conform to the current presentation. Certain disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. These consolidated interim financial statements should be read in conjunction with the Company's Annual Report on Form 10-KSB for the fiscal year ended October 31, 1996. The consolidated financial statements include the accounts of Computer Outsourcing Services, Inc. and its wholly-owned subsidiaries (collectively, the "Company"). All significant intercompany balances and transactions have been eliminated. 2. DEBT At July 31, 1997, the Company was indebted to a bank for three term loans under a Term Loan Agreement ("Agreement") originally aggregating $2,620,000. The proceeds of these loans were used for acquisitions. The Agreement provides for monthly principal and interest payments in varying amounts through May 2000, with interest computed at the bank's prime rate. As last amended on March 20, 1997, the term loans bear interest, at the Company's option, at either the Adjusted Eurodollar Rate (as defined) plus 2.25%, or the bank's prime rate. An aggregate of $1,062,500 was outstanding at July 31, 1997 under this facility. Substantially all of the assets of the Company are pledged as collateral for this indebtedness. In March 1997, the Company and the bank entered into an additional agreement for a revolving line of credit whereby the Company may borrow up to an additional $1,500,000. Interest on these borrowings, when made, may be at either of the rates discussed above. $500,000 was outstanding on this line at July 31, 1997. The line of credit expires on April 30, 1998. Page 8 of 14 COMPUTER OUTSOURCING SERVICES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Continued) 3. STOCK OPTIONS The Company applies the provisions of APB Opinion 25 and related Interpretations in accounting for its stock options. Accordingly, no compensation cost has been recognized for stock options granted. The excess, if any, of the fair market value of shares on the measurement date over the exercise price is charged to operations each year as the options become exercisable. Had compensation cost for these options been determined using the Black-Scholes option-pricing model described in FASB Statement 123 (which permits, but does not require, companies to recognize as expense over the vesting period the fair value of all stock-based awards, measured as of the date of grant), the Company would record aggregate compensation expense of approximately $155,331 which would be expensed over the options' vesting period as follows: Fiscal Years Ended October 31, ------------------ 1997 $74,409 1998 31,334 1999 31,335 2000 9,126 2001 9,127 -------- $155,331 ======== The assumptions used in the option-pricing model include a risk-free interest rate of 6.5%, expected lives of three to five years, and expected volatility of 45%. The pro forma impact of following the provisions of FASB Statement 123 on the Company's net income and net income per share would be as follows: Nine Months Ended July 31, 1997 ----------------- Net income - as reported $513,500 ======== - pro forma $468,111 ======== Net income per common share - as reported $0.13 ===== - pro forma $0.11 ===== Net income per common share has been calculated using the weighted average number of shares of common stock outstanding during the period. Page 9 of 14 COMPUTER OUTSOURCING SERVICES, INC. AND SUBSIDIARIES ITEM 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations --------------------------------------------- RESULTS OF OPERATIONS, NINE MONTH PERIODS ENDED JULY 31, 1997 AND 1996 During the period ended July 31, 1997, revenues increased $2,713,000 to $24,290,000, an increase of 13% over the period ended July 31, 1996. The Company's Information Processing Division recorded a revenue increase of $2,278,000 and the Pay USA Division recorded an increase of $435,000. Data processing costs increased $2,755,000 to $16,211,000 (66.7% of revenues) during the current period compared to $13,456,000 (62.4% of revenues) in the prior year's period. The Information Processing Division's data processing costs increased $2,296,000 to $12,332,000, compared to $10,036,000 in the prior period. The increase as a percentage of revenues is attributable to the mix of services provided in the current period compared to the prior year's period. The Pay USA Division's data processing costs increased $459,000 to $3,879,000. The Company continued the process of standardizing the Pay USA Division into one processing system and consolidating the computer operations of the Information Processing Division. Until the total integration of operations is completed, including payroll system standardization, the Company will continue to experience higher costs due to the cost of the conversion effort and the duplication of facilities and personnel. Selling and promotion costs decreased $50,000 to $1,938,000, but decreased 0.7% as a percentage of revenues. An increase of $255,000 in the Pay USA Division was partially offset by a decrease of $205,000 in the Information Processing Division. The decrease as a percentage of revenues resulted from the consolidation of the sales and marketing efforts in the Information Processing Division. General and administrative expenses decreased $419,000 to $5,075,000 in the current period, a decrease of 4.6% as a percentage of revenues, as the Company continues to be successful in holding down administrative costs while growing revenue. Net interest expense decreased $47,000 to $210,000 in the current period primarily as a result of a decreased level of outstanding debt. For the period ended July 31, 1997, the provision for income taxes was $342,000 at an effective tax rate of 40%. For the comparable period of the prior year, the provision for income taxes was $235,000, a 49% effective tax rate. The decrease in the effective tax rate is the result of the amortization of nondeductible goodwill having less of an impact on a higher level of earnings, coupled with the increased investment in high quality, low risk tax exempt securities. The Company recorded a profit of $514,000 ($0.13 per share) for the period ended July 31, 1997 compared to a profit of $247,000 ($0.06 per share) for the period ended July 31, 1996. Page 10 of 14 COMPUTER OUTSOURCING SERVICES, INC. AND SUBSIDIARIES RESULTS OF OPERATIONS, QUARTERS ENDED July 31, 1997 AND 1996 During the quarter ended July 31, 1997, revenues increased $859,000 to $8,118,000, an increase of 12% over the quarter ended July 31, 1996. The Company's Information Processing Division recorded a revenue increase of $706,000, and the Pay USA Division recorded an increase of $153,000. Data processing costs increased $925,000 to $5,462,000 (67.3% of revenues) during the current quarter compared to $4,536,000 (62.5% of revenues) in the prior year's quarter. The Information Processing Division's data processing costs increased $766,000 and the Pay USA division's data processing costs increased $159,000. The increases in revenues and data processing costs were as a result of factors noted in the nine month discussion above. Selling and promotion costs increased $78,000 to $609,000, an increase of 0.2% as a percentage of revenues. An increase of $102,000 in the Pay USA Division was partially offset by a decrease of $24,000 in the Information Processing Division, as that division undergoes a consolidation of its marketing efforts. General and administrative expenses decreased $271,000 to $1,674,000 in the current quarter, a decrease of 6.2% as a percentage of revenues. Net interest expense decreased $8,000 to $68,000 in the current quarter. For the quarter ended July 31, 1997, the provision for income taxes was $122,000, an effective tax rate of 39.9%. For the comparable quarter of the prior year, the provision for income taxes was $81,000, a 47.3% effective tax rate. The decreases in general and administrative expenses, net interest expense, and the tax provision resulted from the same factors noted in the nine month discussion above. The Company recorded a profit of $184,000 ($0.05 per share) for the quarter ended July 31, 1997 compared to a profit of $90,000 ($0.02 per share) for the quarter ended July 31, 1996. LIQUIDITY AND CAPITAL RESOURCES During the nine months ended July 31, 1997, the Company generated approximately $997,000 from operating activities. This amount includes depreciation and amortization of $1,727,000 and deferred income taxes of $177,000 offset by, among other things, an increase in accounts receivable of $733,000 and various other operating uses of cash. The Company used cash in investing activities of approximately $1,220,000 during the period ended July 31, 1997, principally by investing $441,000 for the purchase of equipment and $745,000 for product enhancements. For the period, the Company used cash of approximately $466,000 in financing activities, primarily by using $815,000 in repayments of long-term debt and $174,000 in repayments of capital leases, partially offset by $500,000 in proceeds from a revolving line of credit. Page 11 of 14 COMPUTER OUTSOURCING SERVICES, INC. AND SUBSIDIARIES LIQUIDITY AND CAPITAL RESOURCES (Continued) As of July 31 1997, the Company had cash and cash equivalents of $395,000 and working capital of $1,136,000. Its current ratio (i.e., the ratio of current assets to current liabilities) was 1.23 to 1, and the ratio of total liabilities to equity was 0.61 to 1. At July 31, 1997, the Company was indebted to a bank for three term loans under a Term Loan Agreement ("Agreement") originally aggregating $2,620,000. The proceeds of these loans were used for acquisitions. The Agreement provides for monthly principal and interest payments in varying amounts through May 2000, with interest computed at the bank's prime rate. As last amended on March 20, 1997, the term loans bear interest, at the Company's option, at either the Adjusted Eurodollar Rate (as defined) plus 2.25%, or the bank's prime rate. An aggregate of $1,062,500 was outstanding at July 31, 1997 under this facility. Substantially all of the assets of the Company are pledged as collateral for this indebtedness. In March 1997, the Company and the bank entered into an additional agreement for a revolving line of credit whereby the Company may borrow up to an additional $1,500,000. Interest on these borrowings, when made, may be at either of the rates discussed above. $500,000 was outstanding on this line at July 31, 1997. The line of credit expires on April 30, 1998. Management believes that its cash flow from operations and its available line of credit will be sufficient to fund the Company's operations for at least the next twelve months. The Company continues to seek acquisition opportunities that fit the Company's long-term strategy. Any material acquisitions may require funding in excess of the level of current and projected operating cash flows, and would require additional debt and/or equity funding. Page 12 of 14 COMPUTER OUTSOURCING SERVICES, INC. AND SUBSIDIARIES PART II - OTHER INFORMATION ITEM 4 - Submission of Matters to a Vote of Security Holders --------------------------------------------------- The Annual Meeting of Stockholders of the Company was held on May 5, 1997, at which the following actions were taken: (1) Eight directors of the Company were elected for terms of one year, or until their respective successors are duly elected and qualified. The following table lists the name of each candidate for director, and the number of shares voted for or withheld from each candidate: Shares Voted Shares Nominee For Election Withheld ------- ------------ -------- Zach Lonstein 3,246,594 128,300 Jeffrey Millman 3,246,594 128,300 Anton P. Donde 3,246,594 128,300 Robert B. Wallach 3,246,594 128,300 Eugene Monosson 3,246,594 128,300 James D. Gerson 3,246,594 128,300 Howard Waltman 3,246,594 128,300 John C. Platt 3,246,594 128,300 (2) The Company's 1992 Stock Option and Stock Appreciation Rights Plan (the "Plan") was amended to increase the number of shares which may be granted under the Plan from 700,000 to 1,200,000. There were 2,447,983 shares voted in favor of the amendment, 209,270 shares voted against the amendment, and 717,641 abstentions and broker nonvotes. ITEM 6 - Exhibits and Reports on Form 8-K (a) Exhibits: None (b) Reports on Form 8-K: None Page 13 of 14 COMPUTER OUTSOURCING SERVICES, INC. AND SUBSIDIARIES 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. COMPUTER OUTSOURCING SERVICES, INC. /s/ ----------------------------------- September 12, 1997 Zach Lonstein Principal Executive Officer /s/ ----------------------------------- September 12, 1997 Laurence L. Carpenter Acting Principal Accounting Officer Page 14 of 14 EX-27 2
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE COMPANY'S QUARTERLY REPORT ON FORM 10-QSB FOR THE PERIOD ENDED JULY 31, 1997, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENT. 9-MOS OCT-31-1997 JUL-31-1997 394,651 0 4,788,585 364,545 0 6,037,061 8,085,918 5,064,741 19,806,749 4,901,334 2,932,604 0 0 37,898 12,294,084 19,806,749 0 24,289,530 0 16,211,149 7,012,517 129,000 238,813 855,900 342,400 513,500 0 0 0 513,500 0.13 0.13 INCLUDES REVOLVING CREDIT LINE AND CURRENT PORTION OF DEBT AND LEASES EQUAL TO $1,516,079
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