-----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, E+3Ww/DwvAPdJaEAlbAf1SM92J9yoqWlQHCMRURImNg8fUpSs2gpUKDq9NU0TyN0 V3r5N8fByxNAPhfxJczbrw== 0000927796-97-000080.txt : 19970514 0000927796-97-000080.hdr.sgml : 19970514 ACCESSION NUMBER: 0000927796-97-000080 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19960329 FILED AS OF DATE: 19970513 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: LINENS N THINGS INC CENTRAL INDEX KEY: 0001023052 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES [5700] IRS NUMBER: 223463939 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-12381 FILM NUMBER: 97602693 BUSINESS ADDRESS: STREET 1: 6 BRIGHTON RD CITY: CLIFTON STATE: NJ ZIP: 07015 BUSINESS PHONE: 2017781300 MAIL ADDRESS: STREET 1: 6 BRIGHTON RD CITY: CLIFTON STATE: NJ ZIP: 07015 10-Q 1 QUARTERLY REPORT SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 29, 1997 Commission File Number 1-12381 Linens 'n Things, Inc. (Exact name of registrant as specified in its charter) Delaware 22-3463939 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 6 Brighton Road, Clifton, New Jersey 07015 (Address of principal executive offices) (Zip Code) (201) 778-1300 (Registrant's telephone number, including area code) Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No Number of shares outstanding of the issuer's Common Stock: Class Outstanding at May 8, 1997 Common Stock, $0.01 par value 19,267,758 INDEX Part I. - Financial Information Page No. ------- Consolidated Statements of Operations for the Thirteen Weeks Ended March 29, 1997 and March 30, 1996 3 Consolidated Balance Sheets as of March 29, 1997, December 31, 1996 and March 30, 1996 4 Consolidated Statements of Cash Flows for the Thirteen Weeks Ended March 29, 1997 and March 30, 1996 5 Notes to Consolidated Financial Statements 6-7 Independent Auditors' Review Report 8 Management's Discussion and Analysis of Financial Condition and Results of Operations 9-11 Part II. - Other Information 12 LINENS 'N THINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data)
Thirteen Weeks Ended March 29, March 30, 1997 1996 ---------------- ----------- (Unaudited) Net sales $ 179,911 $ 138,167 Cost of sales, including buying and warehousing costs 111,596 87,669 -------------- ------------- Gross profit 68,315 50,498 -------------- ------------- Selling, general and administrative expenses 67,371 51,509 -------------- ------------- Operating profit (loss) 944 (1,011) Interest expense, net 336 2,082 -------------- ------------- Income (loss) before provision for income taxes 608 (3,093) Provision for (benefit from) income taxes 256 (1,307) -------------- -------------- Net income (loss) $ 352 $ (1,786) ============== ============== Per share of common stock: Net income (loss) $ 0.02 $ (0.09) -------------- -------------- Weighted average shares outstanding 19,706 19,268
See accompanying notes to consolidated financial statements. LINENS 'N THINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS As of March 29, 1997, December 31,1996 and March 30, 1996 (in thousands, except per share data)
March 29, December 31, March 30, 1997 1996 1996 ---------- ------------ --------- (Unaudited) (Unaudited) Assets Current assets: Cash and cash equivalents $ 3,048 $ 26,914 $ 4,251 Accounts receivable, net 15,738 17,384 9,633 Inventories 202,166 202,134 180,348 Prepaid expenses and other current assets 9,785 10,360 10,755 ----------- --------- ----------- Total current assets 230,737 256,792 204,987 ----------- --------- ----------- Property and equipment, net 137,862 138,508 111,111 Goodwill, net of accumulated amortization of $5,028 at March 29, 1997 $4,814 at December 31, 1996 and $4,178 at March 30, 1996 22,163 22,376 23,013 Deferred charges and other noncurrent assets, net 6,117 6,281 6,433 ----------- --------- ----------- Total assets $ 396,879 $ 423,957 $ 345,544 ----------- --------- ----------- Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 67,971 $ 92,529 $ 69,427 Accrued expenses and other current liabilities 43,345 53,207 28,706 Short-term debt 5,720 -- -- Due to related parties -- -- 159,854 ----------- --------- ----------- Total current liabilities 117,036 145,736 257,987 Long-term note 13,500 13,500 -- Deferred income taxes and other long-term liabilities 16,264 14,994 12,666 Shareholders' equity: Preferred stock, $.01 par value; 1,000,000 shares authorized; none issued and outstanding -- -- -- Common stock, $.01 par value; 60,000,000 shares authorized; 19,267,758 issued and outstanding at March 29, 1997 and December 31, 1996 193 193 -- Additional paid-in capital 200,189 200,189 42,372 Retained earnings 49,697 49,345 32,519 ----------- --------- ----------- Total shareholders' equity 250,079 249,727 74,891 ----------- --------- ----------- Total liabilities and shareholders' equity $ 396,879 $ 423,957 $ 345,544 ----------- --------- ---------
See accompanying notes to consolidated financial statements. LINENS 'N THINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)
Thirteen Weeks Ended March 29, March 30, 1997 1996 ------------- -------- (Unaudited) Cash flows from operating activities: Net income (loss) $ 352 $ (1,786) Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 4,264 3,538 Deferred income taxes 450 1,559 Loss on disposal of assets 634 172 Changes in assets and liabilities: Decrease in accounts receivable 1,646 4,322 Increase in inventories (32) (3,455) Decrease in prepaid expenses and other current assets 1,099 814 Increase in deferred charges and other noncurrent assets -- (3) Decrease in accounts payable (19,241) (13,556) Decrease in accrued expenses and other liabilities (3,161) (12,584) ------------- ------------ Net cash used in operating activities (13,989) (20,979) ------------- ------------ Cash flows from investing activities: Additions to property and equipment (3,875) (6,889) ------------- ------------ Cash flows from financing activities: Increase in due to related parties -- 41,202 Proceeds from issuance of short-term debt 5,720 -- Decrease in book overdrafts (11,722) (13,305) ------------- ------------ Net cash (used in) provided by financing activities (6,002) 27,897 ------------- ----------- Net (decrease) increase in cash and cash equivalents (23,866) 29 Cash and cash equivalents at beginning of year 26,914 4,222 ------------ ----------- Cash and cash equivalents at end of period $ 3,048 $ 4,251 ------------ -----------
See accompanying notes to consolidated financial statements. LINENS 'N THINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. Business Linens 'n Things, Inc. (formerly Bloomington, MN., L.T., Inc.) and subsidiaries (collectively the "Company") operated 165 stores, including 132 superstores, in 34 states across the United States as of March 29, 1997. The Company's superstores average 33,000 square feet while traditional stores average 10,000 square feet. The Company's newest superstores range between 35,000 and 40,000 gross square feet in size. The Company's stores emphasize a broad assortment of home textiles, housewares and home accessories, carrying both national brand and private label goods. 2. Basis of Presentation The accompanying consolidated financial statements, except for the December 31, 1996 consolidated balance sheet, are unaudited. In the opinion of management, the accompanying consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position of the Company as of March 29, 1997 and March 30, 1996 and the results of operations and cash flows for the respective thirteen weeks then ended. Because of the seasonality of the specialty retailing business, operating results of the Company on a quarterly basis may not be indicative of operating results for the full year. These consolidated financial statements should be read in conjunction with the Company's audited Consolidated Financial Statements for the year ended December 31, 1996, included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission. All significant intercompany accounts and transactions have been eliminated. The December 31, 1996 Consolidated Balance Sheet amounts have been derived from the Company's audited consolidated balance sheet amounts. 3. Initial Public Offering The Company was a wholly-owned subsidiary of CVS Corporation ("CVS"), formerly Melville Corporation, until November 26, 1996, when CVS completed an initial public offering ("IPO") of 13,000,000 shares of the Company's common stock. Subsequent to the IPO, CVS owned approximately 32.5% of the Company's outstanding common stock, having retained 6,267,758 shares. During 1996, CVS acquired 100 shares of common stock of Linens 'n Things Center, Inc. ("LNT Center"), a newly formed California corporation, for $130,010,000. In June, 1996, CVS contributed all outstanding shares of common stock of Bloomington, MN., L.T., Inc. to LNT Center. In addition, CVS made a capital contribution of $28,000,000 to LNT Center during October, 1996. Subsequently, CVS contributed all outstanding shares of common stock of LNT Center to Linens 'n Things, Inc., a newly formed Delaware corporation. The accompanying consolidated financial statements are presented as if Linens 'n Things, Inc. had existed and owned LNT Center and Bloomington, MN., L.T., Inc. throughout 1996. Immediately prior to the consummation of the IPO, the authorized capital stock of the Company was changed from 100 shares of common stock, par value $.01 per share, to 60 million shares of common stock, par value $.01 per share, and each issued and outstanding share of common stock was converted into 192,677.58 shares of common stock. 4. Short-Term Borrowing Arrangements Prior to the IPO, all financing was provided to the Company by CVS. Interest rates charged on borrowings from CVS were based on CVS' commercial paper borrowing rates. In connection with the IPO, the Company repaid all indebtedness to CVS and entered into a three-year, $125.0 million senior revolving credit facility agreement (the "Credit Agreement"). The Credit Agreement contains certain financial covenants, including those relating to the maintenance of a minimum tangible net worth, a minimum fixed charge coverage ratio, and a maximum leverage ratio, as defined in the Credit Agreement. Interest on all borrowings is determined based upon several alternative rates as stipulated in the Credit Agreement. As of March 29, 1997, the Company was in compliance with all terms and conditions of the Credit Agreement. On March 29, 1997, the Company had borrowings under the Credit Agreement of $720,000. LINENS 'N THINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The Credit Agreement allows for $10.0 million in borrowings from uncommitted lines outside of the Credit Agreement. As of March 29, 1997, the Company had $5.0 million in borrowings against the uncommitted lines of credit. The average borrowing rate for the first quarter ended March 29, 1997 was 5.78%. 5. Long-Term Note In conjunction with the IPO, the Company issued a four-year, $13.5 million subordinated note (the "Note") to CVS. The Note contains no principal amortization prior to maturity in December 2000, and requires quarterly interest payments at the 90-day LIBOR rate plus the applicable spread under the Credit Agreement described above. The Note also provides for forgiveness by CVS, at varying amounts, based upon the proceeds from any sales of the Company's common stock by CVS together with the market value of the common stock which CVS continues to own at December 31, 1997. The average borrowing rate on the Note for the first quarter ended March 29, 1997 was 6.8%. 6. Recent Accounting Pronouncement In February 1997, Statement of Financial Accounting Standards No. 128, "Earnings per Share" ("SFAS No. 128") was issued. SFAS No. 128 simplifies the standards for computing earnings per share, and makes the United States standards for computing earnings per share more comparable to international standards. SFAS No. 128 requires the presentation of "basic" earnings per share (which excludes dilution) and "diluted" earnings per share. The Company does not believe the adoption of SFAS No. 128 in fiscal 1997 will have a significant impact on the Company's reported earnings per share. SFAS No. 128 is effective for financial statements issued for periods ending after December 15, 1997 and requires restatement of prior period earnings per share presented. Independent Auditors' Review Report The Board of Directors and Shareholders Linens 'n Things, Inc.: We have reviewed the consolidated balance sheets of Linens 'n Things, Inc. and Subsidiaries as of March 29, 1997 and March 30, 1996, and the related consolidated statements of operations and cash flows for the thirteen-week periods then ended. These consolidated financial statements are the responsibility of the Company's management. We conducted our review in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical review procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the consolidated financial statements referred to above for them to be in conformity with generally accepted accounting principles. We have previously audited, in accordance with generally accepted auditing standards, the consolidated balance sheet of Linens 'n Things, Inc. and Subsidiaries as of December 31,1996 and the related consolidated statements of operations, shareholders' equity, and cash flows for the year then ended (not presented herein); and in our report dated February 4,1997, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 1996, is fairly presented, in all material respects, in relation to the consolidated balance sheet from which it has been derived. /S/ KPMG PEAT MARWICK LLP New York, New York April 15, 1997 LINENS 'N THINGS, INC. AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis should be read in conjunction with the Consolidated Financial Statements of the Company and the notes thereto appearing elsewhere in this document. Results of Operations Thirteen Weeks Ended March 29, 1997 Compared to Thirteen Weeks Ended March 30, 1996 During the thirteen weeks ended March 29, 1997, the Company opened one superstore and closed five stores, as compared to opening three superstores and closing ten stores in the thirteen weeks ended March 30, 1996. At March 29, 1997, the Company operated 165 stores, of which 132 were superstores, as compared to 148 stores, of which 102 were superstores, at March 30, 1996. Store square footage increased 28% to 4,696,000 at March 29, 1997 from 3,680,000 at March 30, 1996. Net sales increased 30.2% to $179.9 million for the thirteen weeks ended March 29, 1997, compared to $138.2 million for the same period last year, primarily as a result of new store openings since March 30, 1996. Comparable store net sales for the thirteen weeks ended March 29, 1997 increased 7.7% at the Company's superstore locations and 5.7% for the Company as a whole. Traditional store net sales were less than 10% of total net sales during the thirteen weeks ended March 29, 1997, and will continue to represent a declining percentage of total net sales throughout the year as more superstores are opened and traditional stores are closed. The Company's average net sales per superstore were $5.6 million for the fifty-two weeks ended March 29, 1997, up from $5.2 million for the same period in 1996. For the fifty-two weeks ended March 29, 1997 average superstore net sales per square foot increased to $173 from $171 in the prior fifty-two week period. Comparable store net sales increased in key product categories of the Company's business and across all major markets. Net sales for the thirteen weeks ended March 29, 1997 reflect the entire Easter selling season, and a milder winter as compared to the same period in 1996. In 1996, the final week of the Easter selling season fell in the second quarter. For the thirteen weeks ended March 29, 1997, while both the "linens" and "things" sides of the business experienced comparable store net sales gains, "things" continued to grow at a faster pace than "linens." For the thirteen weeks ended March 29, 1997, net sales of "things" merchandise increased approximately 45% over the same period in the prior year, while net sales of "linens" merchandise increased approximately 24% for the same period. The increase in net sales of "things" merchandise primarily resulted from the growth in the number of superstore locations which carry a larger line of "things" products as well as the overall expansion of the product categories in existing stores. Gross profit for the thirteen weeks ended March 29, 1997 was $68.3 million, or 38.0% of net sales, compared to $50.5 million, or 36.6% of net sales, in the same period during 1996. The improvements in gross profit were due primarily to lower clearance markdowns, improved margins due to the shift in the merchandise mix towards "things" and lower freight costs as a result of increased utilization of the Company's distribution center during the thirteen weeks ended March 29, 1997 compared to the prior year period. Gross margin for both "linens" and "things" merchandise increased consistent with the Company's consolidated results. The gross margin for "things" merchandise was slightly higher than the gross margin for "linens" merchandise for the first thirteen week periods in both 1997 and 1996. Selling, general and administrative expenses ("SG&A") for the thirteen weeks ended March 29, 1997 were $67.4 million, or 37.5% of net sales, compared to $51.5 million, or 37.3% of net sales in the corresponding period during 1996. During the thirteen weeks ended March 30, 1996, the Company recorded a $0.5 million insurance recovery gain associated with damages to one of its stores caused by severe winter conditions. Excluding this gain, SG&A as a percentage of net sales would have shown an improvement of 20 basis points (37.5% for the thirteen weeks ended March 29, 1997 compared to 37.7% for the same period in the prior year). This improvement is primarily attributable to the sales volume increasing faster than increases in SG&A during the thirteen weeks ended March 29, 1997 compared to the prior year period (excluding the insurance recovery gain). Operating profit for the thirteen weeks ended March 29, 1997 increased to $0.9 million, or 0.5% of net sales, compared to a loss of $1.0 million, or (0.7%) of net sales, during the same period in 1996. Net interest expense (including commitment fees in connection with the $125 million Credit Agreement) for the thirteen weeks ended March 29, 1997 was $336,000 compared to $2.1 million for the thirteen weeks ended March 30, 1996. The reduction in net interest expense is due to a reduction in net average borrowings, which were $7.9 million in the thirteen weeks ended March 29, 1997 as compared to $145.0 million in the same period in 1996. The reduction in net average borrowings is a result of the capital contributions from CVS of $158.0 million in 1996 prior to the IPO and improved operating performance. See "-- Liquidity and Capital Resources." The Company's income tax expense for the thirteen weeks ended March 29, 1997 was $256,000, as compared to a benefit of $1.3 million during the same period in 1996. Net income for the thirteen weeks ended March 29, 1997 increased to $352,000, or $0.02 per share, compared to a net loss of $1.8 million, or ($0.09) per share, during the same period in 1996. Liquidity and Capital Resources The Company's capital requirements have been used primarily for capital investment in new stores, new store inventory purchases and seasonal working capital. The capital requirements and working capital needs have been funded through a combination of internally generated cash from operations, credit extended by suppliers and borrowings from CVS. Net cash used in operating activities for the first quarter of 1997 was $14.0 million compared to $21.0 million for the same period last year. The decrease in cash used during the first quarter of 1997 was due to a $2.1 million increase in profitability and only a slight increase in inventory due to an improved inventory turnover rate compared to the first quarter of 1996. The decrease was also due to a smaller reduction in current liabilities caused by the timing of vendor payments. Net cash used in investing activities during the first quarter of 1997 was $3.9 million compared to $6.9 million in the same period last year. The decrease from the first quarter of 1996 is associated with the timing of the Company's new store openings. Net cash used in financing activities during the first quarter of 1997 was $6.0 million compared to net cash provided by financing activities of $27.9 million for the same period last year. Net cash used during the first quarter of 1997 was primarily the result of the timing of the settlement of vendor payments offset by borrowings of $5.7 million. Net cash provided during the first quarter of 1996 was primarily the result of CVS's funding of the Company's increased working capital needs. The Company has available a $125 million three-year senior revolving credit facility. Management believes that the Company's cash flow from operations and the revolving credit facility will be sufficient to fund anticipated capital expenditures and working capital requirements for at least the next three years. Through December 31, 1996, the Company had not borrowed against this facility. For more discussion, see "Notes to Consolidated Financial Statements." Inflation The Company does not believe that its operating results have been materially affected by inflation during the preceding three years. There can be no assurance, however, that the Company's operating results will not be affected by inflation in the future. Seasonality The Company's business is subject to substantial seasonal variations. Historically, the Company has realized a significant portion of its net sales and substantially all of its net income for the year during the third and fourth quarters, with a majority of net sales and net income for such quarters realized in the fourth quarter. The Company's quarterly results of operations may also fluctuate significantly as a result of a variety of other factors, including the timing of new store openings. The Company believes this is the general pattern associated with its segment of the retail industry and expects this pattern will continue in the future. Consequently, comparisons between quarters are not necessarily meaningful and the results for any quarter are not necessarily indicative of future results. Forward Looking Statements This Quarterly Report to Shareholders contains forward-looking information within the meaning of The Private Securities Litigation Reform Act of 1995. The statements are made a number of times throughout the document and may be identified by use of forward-looking terminology such as "expect", "believe", "will" or similar statements or variations of such terms. Such forward-looking statements involve certain risks and uncertainties including levels of sales, store competition and acceptance of product offerings and fashions and, in each case, actual results may differ materially from such forward-looking information. Certain factors that may cause actual results to differ from such forward-looking statements are included in the "Risk Factors" section of the Company's Registration Statement on Form S-1 as filed with the Securities and Exchange Commission on November 25, 1996 as well as other periodic reports filed by the Company with the Securities and Exchange Commission and you are urged to consider such factors. The Company assumes no obligation for updating any such forward-looking statements. PART II - OTHER INFORMATION Item 6 - Exhibits and Reports on Form 8-K (a) EXHIBIT INDEX Exhibit Number Description 11 Computation of Net Income (Loss) Per Common Share 15 Letter re Unaudited Interim Financial Information 27 Financial Data Schedule (filed electronically with SEC only) (b) Reports on Form 8-K: No Current Reports on Form 8-K were filed by the Company during the three month period ended March 29, 1997. SIGNATURE 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. Linens 'n Things, Inc. (Registrant) James M. Tomaszewski Senior Vice President, Chief Financial Officer Date: May 12, 1997 EX-11 2 COMPUTATION OF NET INCOME (LOSS) PER COMMON SHARE LINENS 'N THINGS, INC. AND SUBSIDIARIES COMPUTATION OF NET INCOME (LOSS) PER COMMON SHARE (in thousands, except per share data)
For the Thirteen Weeks Ended March 29, March 30, 1997 1996 ------------------------------------ (Unaudited) FINANCIAL STATEMENT PRESENTATION Weighted-average number of shares outstanding 19,706 19,268 =================== =================== Net income (loss) applicable to common shares $352 $(1,786) =================== =================== Per-share amounts Net income (loss) per share $0.02 $(0.09) =================== =================== PRIMARY Weighted-average number of shares outstanding 19,706 19,268 =================== =================== Net income (loss) applicable to common shares $352 $(1,786) =================== =================== Per-share amounts Net income (loss) per share $0.02 $(0.09) =================== =================== FULLY DILUTED Weighted-average number of shares outstanding and fully diluted common share equivalents 19,784 19,268 =================== =================== Net income (loss) applicable to common shares $352 $(1,786) =================== =================== Per-share amounts Net income (loss) per share $0.02 $(0.09) =================== ===================
EX-15 3 LETTER RE UNAUDITED INTERIM FINANCIAL INFORMATION Accountants' Acknowledgement Linens 'n Things, Inc. Clifton, New Jersey Board of Directors: Re: Registration Statement Numbers 333-26819 and 333-26827 on Form S-8 With respect to the subject registration statements, we acknowledge our awareness of the use therein of our report dated April 15, 1997 related to our review of interim financial information. Pursuant to Rule 436(c) under the Securities Act of 1933, such report is not considered a part of a registration statement prepared or certified by an accountant or a report prepared or certified by an accountant within the meaning of Sections 7 and 11 of the Act. /S/ KPMG PEAT MARWICK LLP New York, New York May 8, 1997 EX-27 4 EXHIBIT 27 - FDS FILED WITH FORM 10-Q
5 Appendix A to Item 601(c) of Regulation S-K Commercial and Industrial Companies Article 5 of Regulation S-X (in Thousands except per share data) 3-MOS DEC-31-1996 MAR-29-1997 3,048 0 15,738 0 202,166 230,737 178,289 40,247 396,879 117,036 13,500 0 0 193 249,886 396,879 179,911 179,911 111,596 67,371 0 0 336 608 256 352 0 0 0 352 0.02 0.02
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