-----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, QdqVzr4U5Znre1rEoEvjN7uwnn1fr3U7Qrs83DuDO0bLmkje1Y23rVRWBxSBL5cY 7BiCJqEGlXLqwzG867QkpA== 0000311259-98-000010.txt : 19980724 0000311259-98-000010.hdr.sgml : 19980724 ACCESSION NUMBER: 0000311259-98-000010 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980630 FILED AS OF DATE: 19980723 SROS: BSE SROS: NYSE SROS: PCX FILER: COMPANY DATA: COMPANY CONFORMED NAME: EASTERN ENTERPRISES CENTRAL INDEX KEY: 0000311259 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS DISTRIBUTION [4924] IRS NUMBER: 041270730 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-02297 FILM NUMBER: 98670122 BUSINESS ADDRESS: STREET 1: 9 RIVERSIDE RD CITY: WESTON STATE: MA ZIP: 02193 BUSINESS PHONE: 7816472300 FORMER COMPANY: FORMER CONFORMED NAME: EASTERN GAS & FUEL ASSOCIATES DATE OF NAME CHANGE: 19890511 10-Q 1 EASTERN ENTERPRISES FORM 10-Q Form 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1998 --------------------------- OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ------------------- ----------------- Commission File Number 1-2297 EASTERN ENTERPRISES ------------------------------------------------------------- (Exact name of registrant as specified in its charter) MASSACHUSETTS 04-1270730 ------------------------------ ------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 9 RIVERSIDE ROAD, WESTON, MASSACHUSETTS 02493 ------------------------------------------------------------- (Address of principal executive offices) (Zip Code) 781-647-2300 ------------------------------------------------------------- (Registrant's telephone number, including area code) ------------------------------------------------------------- Former name, former address and former fiscal year, if changed since last report. 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 ---- ---- The number of shares of Common Stock outstanding of Eastern Enterprises as of July 22, 1998 was 20,432,396. Form 10-Q Page 2. PART I. FINANCIAL INFORMATION Item 1. FINANCIAL STATEMENTS Company or group of companies for which report is filed: EASTERN ENTERPRISES AND SUBSIDIARIES ("Eastern") Consolidated Statement of Operations - ------------------------------------
Three months ended Six months ended June 30, June 30, (In thousands, except per share amounts) 1998 1997 1998 1997 - -------------------------------------------------------------------------------------------------------------------- Revenues $192,621 $207,856 $535,540 $584,776 Operating costs and expenses: Operating costs 132,681 146,796 368,326 419,355 Selling, general & adminis- trative expenses 26,704 26,497 56,328 55,578 Depreciation & amortization 16,649 15,934 39,890 38,237 -------- -------- -------- -------- 176,034 189,227 464,544 513,170 -------- -------- -------- -------- Operating earnings 16,587 18,629 70,996 71,606 Other income (expense): Interest income 1,493 2,228 4,110 4,333 Interest expense (6,998) (8,535) (15,530) (17,325) Equity in loss of AllEnergy - (1,821) - (3,098) Other, net 777 85 2,067 58 -------- -------- -------- ------- Earnings before income taxes 11,859 10,586 61,643 55,574 Provision for income taxes 4,514 1,548 23,375 18,313 -------- -------- -------- ------- Earnings before extraordinary items 7,345 9,038 38,268 37,261 Extraordinary items,net of tax: Credit for coal miners retiree health care 48,425 - 48,425 - Loss on early extinguishment of debt - - (1,465) - -------- -------- -------- -------- Net earnings $ 55,770 $ 9,038 $ 85,228 $ 37,261 ======== ======== ======== ======== Basic earnings per share before extraordinary items $ .36 $ .44 $ 1.87 $ 1.83 Extraordinary items, net of tax: Credit for coal miners retiree health care 2.37 - 2.37 - Loss on early extinguishment of debt - - (.07) - -------- -------- -------- -------- Basic earnings per share $ 2.73 $ .44 $ 4.17 $ 1.83 ======== ======== ======== ======== Diluted earnings per share before extraordinary items $ .36 $ .44 $ 1.86 $ 1.82 Extraordinary items, net of tax: Credit for coal miners retiree health care 2.35 - 2.35 - Loss on early extinguishment of debt - - (.07) - -------- -------- -------- -------- Diluted earnings per share $ 2.71 $ .44 $ 4.14 $ 1.82 ======== ======== ======== ======== Dividends per share $ .41 $ .40 $ .81 $ .80 ======== ======== ======== ========
The accompanying notes are an integral part of these financial statements. Form 10-Q Page 3. Eastern Enterprises and Subsidiaries - ------------------------------------ Consolidated Balance Sheet - --------------------------
June 30, Dec. 31, June 30, (In thousands) 1998 1997 1997 - ---------------------------------------------------------------------------------------------------------------------- ASSETS Current assets: Cash and short-term investments $ 106,440 $ 175,274 $ 170,087 Receivables, less reserves 96,535 108,575 95,392 Inventories 40,072 56,644 43,064 Deferred gas costs 24,979 66,595 17,048 Other current assets 7,077 5,145 6,607 ---------- ---------- ---------- Total current assets 275,103 412,233 332,198 Property and equipment, at cost 1,561,523 1,516,186 1,466,529 Less--accumulated depreciation 696,945 662,628 640,816 ---------- ---------- ---------- Net property and equipment 864,578 853,558 825,713 Other assets: Deferred post-retirement health care costs 81,247 83,926 86,245 Investments 15,805 15,072 26,042 Deferred charges and other costs, less amortization 68,525 69,568 47,205 ---------- ---------- ---------- Total other assets 165,577 168,566 159,492 ---------- ---------- ---------- Total assets $1,305,258 $1,434,357 $1,317,403 ========== ========== ==========
The accompanying notes are an integral part of these financial statements. Form 10-Q Page 4. Eastern Enterprises and Subsidiaries - ------------------------------------ Consolidated Balance Sheet - --------------------------
June 30, Dec. 31, June 30, (In thousands) 1998 1997 1997 - ----------------------------------------------------------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current debt $ 4,545 $ 44,051 $ 4,583 Accounts payable 39,719 67,740 43,943 Accrued expenses 41,722 37,143 35,420 Other current liabilities 46,372 65,762 59,830 ---------- ------------ ----------- Total current liabilities 132,358 214,696 143,776 Gas inventory financing 29,185 55,502 29,990 Long-term debt 291,461 342,142 345,084 Reserves and other liabilities: Deferred income taxes 124,163 98,863 94,184 Post-retirement health care 94,188 95,120 96,155 Coal miners retiree health care - 57,000 58,949 Preferred stock of subsidiary 29,343 29,326 29,309 Other reserves 87,027 92,647 69,458 ---------- ------------ ----------- Total reserves and other liabilities 334,721 372,956 348,055 Commitments and Contingencies Shareholders' equity: Common stock, $1.00 par value Authorized shares -- 50,000,000 Issued shares -- 20,442,907 at June 30, 1998 and December 31, 1997; 20,441,907 at June 30, 1997 20,443 20,443 20,443 Capital in excess of par value 32,547 32,663 32,716 Retained earnings 464,145 395,662 397,490 Accumulated other comprehensive earnings 780 1,873 2,127 Treasury stock at cost - 11,131 shares at June 30, 1998; 54,928 shares at December 31, 1997 and 88,252 shares at June 30, 1997 (382) (1,580) (2,278) ---------- ----------- ---------- Total shareholders' equity 517,533 449,061 450,498 ---------- ----------- ---------- Total liabilities and shareholders' equity $1,305,258 $ 1,434,357 $1,317,403 ========== =========== ==========
The accompanying notes are an integral part of these financial statements. Form 10-Q Page 5. Eastern Enterprises and Subsidiaries - ------------------------------------ Consolidated Statement of Cash flows - ------------------------------------
Six months ended June 30, (In thousands) 1998 1997 - ------------------------------------------------------------------------------------------------------------------------ Cash flows from operating activities: Net earnings $ 85,228 $ 37,261 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 39,890 38,237 Income taxes and tax credits 2,934 9,771 Net credit for coal miners retiree health care (48,425) - Net loss on early extinguishment of debt 1,465 - Net gain on sale of assets (1,625) - Other changes in assets and liabilities: Receivables 12,040 1,462 Inventories 16,572 18,207 Deferred gas costs 41,616 58,289 Accounts payable (28,021) (30,172) Other (7,202) (604) --------- --------- Net cash provided by operating activities 114,472 132,451 Cash flows from investing activities: Capital expenditures (49,882) (25,915) Proceeds on sale of assets 5,654 - Investments (162) (7,400) Other (115) (727) --------- --------- Net cash used by investing activities (44,505) (34,042) Cash flows from financing activities: Dividends paid (16,732) (16,257) Changes in notes payable (39,700) (56,600) Repayment of long-term debt (52,741) (2,332) Changes in gas inventory financing (26,317) (25,604) Other 1,741 491 --------- --------- Net cash used by financing activities (133,749) (100,302) Net decrease in cash and cash equivalents (63,782) (1,893) Cash and cash equivalents at beginning of year 170,222 159,804 --------- --------- Cash and cash equivalents at end of period 106,440 157,911 Short-term investments - 12,176 --------- --------- Cash and short-term investments $ 106,440 $ 170,087 ========= =========
The accompanying notes are an integral part of these financial statements. Form 10-Q Page 6. EASTERN ENTERPRISES AND SUBSIDIARIES NOTES TO FINANCIAL STATEMENTS June 30, 1998 1. Accounting policies It is Eastern's opinion that the financial information contained in this report reflects all adjustments necessary to present a fair statement of results for the periods reported. All of these adjustments are of a normal recurring nature. Results for the periods are not necessarily indicative of results to be expected for the year, due to the seasonal nature of Eastern's operations. All accounting policies have been applied in a manner consistent with prior periods. Such financial information is subject to year-end adjustments and annual audit by independent public accountants. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted in this Form 10-Q. Therefore these interim financial statements should be read in conjunction with Eastern's 1997 Annual Report filed on Form 10-K with the Securities and Exchange Commission. Earnings per share Basic earnings per share is based on the weighted average number of shares outstanding. Diluted earnings per share gives effect to the exercise of stock options using the treasury stock method, as reflected below:
Three months ended June 30, Six months ended June 30, (In thousands) 1998 1997 1998 1997 - ------------------------------------------------------------------------------------------------------------------------ Weighted average shares 20,429 20,349 20,421 20,339 Dilutive effect of options 151 93 161 91 ------ ------ ------ ------ Adjusted weighted average shares 20,580 20,442 20,582 20,430 ====== ====== ====== ======
2. Change in Accounting Principles Effective January 1, 1998, Eastern adopted Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive Income." This statement requires presentation of the components of comprehensive earnings, including the changes in equity from non-owner sources such as unrealized gains on securities and minimum pension liability adjustments. Eastern's total comprehensive earnings were as follows: Form 10-Q Page 7.
Three months ended June 30, Six months ended June 30, (In thousands) 1998 1997 1998 1997 - ---------------------------------------------------------------------------------------------------------------------- Net earnings $55,570 $ 9,038 $85,228 $37,261 Unrealized gains on securities: Unrealized holding gains arising during period 79 655 557 912 Less: reclassification adjustment for gains included in net earnings (496) - (1,650) - ------- ------- ------- ------- (417) 655 (1,093) 912 ------- ------- ------- ------- Comprehensive earnings $55,153 $ 9,693 $84,135 $38,173 ======= ======= ======= =======
3. Coal Miners Retiree Health Care On June 25, 1998 the U.S. Supreme Court ruled that the Coal Industry Retiree Health Benefit Act of 1992 ("the Coal Act") is unconstitutional as applied to Eastern. Beginning in 1993, Eastern recorded provisions totaling $80.0 million to fund its liability under the Coal Act. As a result of the Supreme Court's decision, Eastern reversed those provisions, less associated expenses, resulting in an extraordinary gain of $74.5 million pre-tax, $48.4 million net or $2.35 per share in the second quarter of 1998. 4. Debt In March 1998, Midland utilized currently available cash to call $50 million of 9.9% First Preferred Ship Mortgage Bonds, due 2008. In extinguishing this debt, Midland recognized an extraordinary charge of $2,254,000 pretax, $1,465,000 net, or $.07 per share. Midland has entered into treasury rate locks in order to hedge the interest rate on long-term debt anticipated to be issued in late 1998. The treasury rate locks are for $75 million at a weighted average 10-year treasury rate of 5.676%. Upon issuance of the debt, any gain or loss realized on the treasury rate lock will be amortized to interest expense over the term of the related debt. 5. Inventories The components of inventories were as follows:
June 30, Dec. 31, June 30, (In thousands) 1998 1997 1997 - ---------------------------------------------------------------------------------------------------------- Supplemental gas supplies $ 29,285 $ 44,590 $ 30,669 Other materials, supplies and marine fuels 10,787 12,054 12,395 -------- -------- -------- $ 40,072 $ 56,644 $ 43,064 ======== ======== ========
Form 10-Q Page 8. 6. Supplemental cash flow information The following are supplemental disclosures of cash flow information:
Six months ended June 30, (In thousands) 1998 1997 - ----------------------------------------------------------------------------------------------------------------- Cash paid during the year for: Interest, net of amounts capitalized $16,194 $16,762 Income taxes $20,625 $ 8,981
Form 10-Q Page 9. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
RESULTS OF OPERATIONS Revenues: Three months ended June 30, (In thousands) 1998 1997 Change - ------------------------------------------------------------------------------------------------------ Boston Gas $126,974 $139,743 (9)% Midland 65,163 68,113 (4)% ServicEdge 484 - nm -------- -------- Total $192,621 $207,856 (7)% ======== ========
Six months ended June 30, 1998 1997 Change - ------------------------------------------------------------------------------------------------------ Boston Gas $407,235 $452,281 (10)% Midland 127,821 132,495 (4)% ServicEdge 484 - nm -------- -------- Total $535,540 $584,776 (8)% ======== ========
Boston Gas Lower revenues for the second quarter of 1998 reflect warmer weather ($15 million) and the migration of customers from firm sales to transportation-only service ($4 million), partially offset by throughput growth and the pass through of higher gas costs. Weather in the second quarter was 3% warmer than normal, in contrast to 24% colder than normal weather in the previous year. The decrease in year-to-date revenues in 1998 reflects warmer weather ($25 million), the pass through of lower gas costs ($23 million) and migration to transportation ($16 million), partially offset by higher non-firm sales and throughput growth. Year-to-date weather was 9% warmer than normal, compared to near normal weather in 1997. Midland Enterprises River transportation markets in the second quarter were nearly unchanged from those experienced in the first quarter of 1998. Weak demand for export coal and grain continued during the quarter, resulting in an oversupply of barges and placing downward pressure on spot and contract renewal rates. The strengthening of the U.S. dollar and the economic problems of Southeast Asia have contributed to the export market weakness. Increased demand for domestic coal by electric utility and industrial customers offset much of the reduced export volume. However, lower fuel prices decreased rates on multi-year contracts containing fuel price adjustment clauses. Second quarter and year-to-date tonnage increased 6% and 8%, respectively, while related ton miles declined 2% for the quarter and 4% year-to-date as compared to 1997. The tonnage increases primarily reflect replacement of reductions in export tonnage with shorter haul domestic movements. Coal tonnage increased 10% and 14% for the quarter and first six months of 1998, respectively, with coal tonnage under multi-year contracts to utility and industrial customers increasing 20% in the quarter and 28% year-to-date. Reduced spot and export coal tonnage was partially offsetting. Non-coal tonnage was flat for the second quarter and 3% lower for 1998 year-to-date, due to significantly lower grain shipments, partially offset by increased aggregate tonnage and towing for others. Form 10-Q Page 10. ServicEdge Revenues for the second quarter of 1998 reflect the commencement of services to customers in April 1998.
Operating Earnings: Three months ended June 30, (In thousands) 1998 1997 Change - ---------------------------------------------------------------------------------------------------------- Boston Gas $12,919 $11,368 14% Midland 7,719 9,103 (15)% ServicEdge (2,520) - nm Headquarters (1,531) (1,842) 17% ------- ------- Total $16,587 $18,629 (11)% ======= =======
Six months ended June 30, 1998 1997 Change - -------------------------------------------------------------------------------------------------------- Boston Gas $64,542 $60,159 7% Midland 13,807 14,531 (5)% ServicEdge (4,657) - nm Headquarters (2,696) (3,084) 13% ------- ------- Total $70,996 $71,606 (1)% ======= =======
Boston Gas Operating earnings for the second quarter of 1998 increased by $1.6 million, reflecting lower operating costs ($5 million) and growth in throughput, partially offset by the margin impact of warmer weather ($5 million). Operating earnings for the first six months of 1998 increased by $4.4 million, reflecting lower operating costs ($8 million), growth in throughput and higher average rates, partially offset by the margin impact of warmer weather ($8 million) and the absence of a pension settlement gain reflected in 1997 ($2 million). The pass through of higher or lower gas costs and migration to transportation-only service have no impact on Boston Gas' operating earnings. The Company earns all of its margins on the local distribution of gas and none on the resale of the commodity. Midland Enterprises Operating earnings for the second quarter and year-to-date 1998 decreased by $1.8 million and $0.7 million, respectively, reflecting weaker market conditions, as described above and adverse operating conditions attributable to El Nino-related storms in 1998, particularly in the Southeast and Gulf regions. These storms continued to cause high water conditions and intermittent operational delays and resulted in increased vessel costs similar to the impact of record flooding on the Ohio River in the comparable period in 1997. In addition, fleet operational efficiency was negatively impacted by the lack of export tonnage, as replacement tonnage did not produce equivalent pattern efficiency. Lower fuel costs partially offset the higher operating costs. Form 10-Q Page 11. ServicEdge ServicEdge's operating losses of $2.5 million for the second quarter and $4.7 million for the first six months of 1998, reflect general and administrative expense associated with starting this new business. Other: Interest income and interest expense for the second quarter of 1998 decreased by $0.7 million and $1.5 million, respectively, primarily reflecting the use of short-term investments to redeem $50 million of Midland debt in March 1998, as discussed in Note 4 of Notes to Financial Statements. Eastern recognized an extraordinary loss of $2.3 million pretax, $1.5 million net, or $.07 per share on redeeming this debt. In 1997, other income includes losses for the quarter and first six months of $1.8 million and $3.1 million, respectively, representing Eastern's share of AllEnergy's operating losses. Eastern sold its investment in AllEnergy in December 1997. In 1998, other, net includes realized gains on investments of $0.5 million for the quarter and $1.6 million year-to-date. In June 1998, The U.S. Supreme Court held the Coal Industry Retiree Health Benefit of 1992 ("Coal Act") to be unconstitutional, as applied to Eastern. As discussed in Footnote 3, the reversal of Coal Act provisions resulted in an extraordinary gain of $74.5 million pre-tax, $48.4 million net, or $2.35 per share in the second quarter of 1998. FORWARD-LOOKING INFORMATION: This report and other company statements and statements issued or made from time to time contain certain "forward-looking statements" concerning projected future financial performance, expected plans or future operations. Eastern cautions that actual results and developments may differ materially from such projections or expectations. Investors should be aware of important factors that could cause actual results to differ materially from the forward-looking projections or expectations. These factors include, but are not limited to: the effect of strategic initiatives on earnings and cash flow, temperatures above or below normal in Boston Gas' service area, changes in market conditions for barge transportation, adverse weather and operating conditions on the inland waterways, uncertainties regarding the start-up of ServicEdge, including expense levels and customer acceptance, changes in economic conditions, including interest rates and the value of the dollar versus other currencies, regulatory and court decisions and developments with respect to Eastern's previously-disclosed environmental liabilities. Most of these factors are difficult to predict accurately and are generally beyond Eastern's control. Form 10-Q Page 12. LIQUIDITY AND CAPITAL RESOURCES Management believes that projected cash flows from operations, in combination with currently available resources and the borrowing discussed below, are more than sufficient to meet Eastern's 1998 capital expenditure and working capital requirements, potential funding of its environmental liabilities, normal debt repayments and anticipated dividend payments to shareholders. Consolidated capital expenditures are budgeted at approximately $110 million, with about 55% at Boston Gas and the balance at Midland. As discussed in Note 3, in March 1998, Midland utilized currently available cash to redeem $50 million of 9.9% First Preferred Ship Mortgage Bonds, due 2008. Midland currently expects to borrow $75 million later in 1998 to refinance the redeemed debt and to fund capital expenditures for barges during 1998 and 1999. Midland has entered into treasury rate locks in order to hedge the interest rate for this debt, as discussed in Note 3. In June 1998, the shareholders of Essex County Gas Company approved the proposed acquisition of that utility by Eastern. The merger, which will be accounted for on a pooling of interests basis, is subject to a number of conditions, including receipt of various state and federal regulatory approvals. Form 10-Q Page 13. PART II. OTHER INFORMATION Item 5. Other Information Discretionary Voting Authority - 45 Day Advance Notice Requirement If a proponent fails to notify Eastern Enterprises by February 1, 1999 of a proposal for consideration at the 1999 Annual Shareholders Meeting, then the proxies named by management with respect to that meeting shall have discretionary voting authority with respect to that proposal. Item 6. Exhibits and Reports on Form 8-K (a) List of Exhibits 27.1 Financial Data Schedule. (b) Report on Form 8-K On June 29, 1998 Eastern filed a Form 8-K which contained the press release announcing that the U.S. Supreme Court declared the Coal Industry Retiree Health Benefit Act of 1992 unconstitutional as applied to Eastern Enterprises. Form 10-Q Page 14. SIGNATURES It is Eastern's opinion that the financial information contained in this report reflects all adjustments necessary to present a fair statement of results for the period reported. All of these adjustments are of a normal recurring nature. Results for the period are not necessarily indicative of results to be expected for the year, due to the seasonal nature of Eastern's operations. All accounting policies have been applied in a manner consistent with prior periods other than changes disclosed in Notes to Financial Statements. Such financial information is subject to year-end adjustments and annual audit by independent public accountants. Pursuant to the requirements of the Securities Exchange Act of 1934, Eastern has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. EASTERN ENTERPRISES By /s/ JAMES J. HARPER ------------------------- James J. Harper Vice President and Controller (Chief Accounting Officer) By /s/ WALTER J. FLAHERTY ------------------------- Walter J. Flaherty Senior Vice President and Chief Financial Officer July 23, 1998 EX-27.1 2 ARTICLE 5
5 This schedule contains summary financial information extracted from the consolidated statement of earnings and the consolidated balance sheets and is qualified in its entirety by reference to such financial statements. 1,000 U.S. DOLLARS 6-MOS DEC-31-1998 JAN-01-1998 JUN-30-1998 1 106,440 0 114,040 17,505 40,072 275,103 1,561,523 696,945 1,305,258 132,358 291,461 20,443 29,343 0 497,090 1,305,258 407,235 535,540 300,676 407,861 41,470 9,116 15,450 61,643 23,375 38,268 0 46,960 0 85,228 4.17 4.14 EPS - Primary is EPS Basic per SFAS 128 EPS - Fully Diluted is EPS - Diluted per SFAS 128
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