-----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, RYakbADovgekbnEja7xy0djeuP2ybarc+3erLW38lTvmUAhhQEul8RIy3Ij0XxCo wE1CVbK3LwbClieNN903og== 0000071023-99-000016.txt : 19991117 0000071023-99-000016.hdr.sgml : 19991117 ACCESSION NUMBER: 0000071023-99-000016 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19990930 FILED AS OF DATE: 19991115 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NELSON THOMAS INC CENTRAL INDEX KEY: 0000071023 STANDARD INDUSTRIAL CLASSIFICATION: BOOKS: PUBLISHING OR PUBLISHING AND PRINTING [2731] IRS NUMBER: 620679364 STATE OF INCORPORATION: TN FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-13788 FILM NUMBER: 99756543 BUSINESS ADDRESS: STREET 1: 501 NELSON PLACE CITY: NASHVILLE STATE: TN ZIP: 37214-1000 BUSINESS PHONE: 6158899000 MAIL ADDRESS: STREET 1: P O BOX 141000 CITY: NASHVILLE STATE: TN ZIP: 37214-1000 FORMER COMPANY: FORMER CONFORMED NAME: ROYAL PUBLISHERS INC DATE OF NAME CHANGE: 19721019 10-Q 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1999 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 0-4095 THOMAS NELSON, INC. (Exact name of Registrant as specified in its charter) Tennessee 62-0679364 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification numer) 501 Nelson Place, Nashville, Tennessee 37214-1000 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (615) 889-9000 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 At November 9, 1999, the Registrant had outstanding 13,133,976 shares of Common Stock and 1,096,619 shares of Class B Common Stock. PART I Item 1. Financial Statements THOMAS NELSON, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in thousands)
September 30, March 31, September 30, 1999 1999 1998 ------------- ------------ ------------- (Unaudited) (Unaudited) ASSETS Current assets Cash and cash equivalents $ 2,860 $ 609 $ 1,978 Accounts receivable, less allowances of $6,914, $6,982 and $6,988, respectively 82,414 77,298 81,888 Inventories 66,272 65,805 75,504 Prepaid expenses 12,527 12,656 11,383 Deferred tax assets 6,715 6,715 3,276 ------------- ------------ ------------- Total current assets 170,788 163,083 174,029 Property, plant and equipment, net 24,709 25,557 30,051 Other assets 9,016 10,260 9,987 Deferred charges 1,592 1,421 2,086 Goodwill 58,321 55,009 55,783 ------------- ------------ ------------- TOTAL ASSETS $ 264,426 $ 255,330 $ 271,936 ============== ============ ============= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 19,097 $ 16,355 $ 17,054 Accrued expenses 15,233 19,720 20,128 Dividends payable 569 576 590 Income taxes currently payable 2,509 2,793 2,763 Current portion of long-term debt & capital lease obligations 2,441 4,845 3,853 ------------- ------------ ------------- Total current liabilities 39,849 44,289 44,388 Long-term debt 90,066 79,542 95,039 Capital lease obligations - - 6 Deferred tax liabilities 4,432 4,432 3,364 Other liabilities 1,502 1,418 988 Shareholders' equity Preferred stock, $1.00 par value, authorized 1,000,000 shares; none issued - - - Common stock, $1.00 par value, authorized 20,000,000 shares; issued 13,133,976, 13,286,860 and 13,653,090 shares, respectively 13,134 13,287 13,653 Class B common stock, $1.00 par value, authorized 5,000,000 shares; issued 1,096,619, 1,103,524 and 1,106,324 shares, respectively 1,097 1,104 1,106 Additional paid-in capital 43,126 44,537 48,724 Retained earnings 71,220 66,721 64,668 ------------- ------------ ------------- Total shareholders' equity 128,577 125,649 128,151 ------------- ------------ ------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 264,426 $ 255,330 $ 271,936 ============= ============= ============= See Accompanying Notes
THOMAS NELSON, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share data)
Six Months Ended Three Months Ended September 30, September 30, 1999 1998 1999 1998 ----------- ---------- ----------- ----------- (Unaudited) (Unaudited) (Unaudited) (Unaudited) NET REVENUES $ 129,226 $126,439 $ 70,110 $ 70,445 COST AND EXPENSES: Cost of goods sold 71,638 67,484 38,355 37,150 Selling, general and administrative 45,075 46,430 23,271 24,274 Amortization of goodwill and non-compete agreements 763 817 405 409 ----------- ---------- ----------- ----------- Total expenses 117,476 114,731 62,031 61,833 ----------- ---------- ----------- ----------- OPERATING INCOME 11,750 11,708 8,079 8,612 Other income (expense) 249 387 227 - Interest expense 3,144 3,145 1,624 1,655 ----------- ---------- ----------- ----------- Income before income taxes 8,855 8,950 6,682 6,957 Provision for income taxes 3,223 3,311 2,430 2,574 ----------- ---------- ----------- ----------- NET INCOME $ 5,632 $ 5,639 $ 4,252 $ 4,383 =========== =========== =========== =========== Weighted average number of shares outstanding: Basic 14,253 15,886 14,227 15,055 =========== =========== =========== =========== Diluted 14,258 19,160 14,230 18,307 =========== =========== =========== =========== NET INCOME PER SHARE: Basic $ 0.40 $ .0.35 $ 0.30 $ 0.29 =========== =========== =========== =========== Diluted $ 0.40 $ 0.35 $ 0.30 $ 0.27 =========== =========== =========== =========== DIVIDENDS DECLARED PER SHARE $ 0.08 $ 0.08 $ 0.04 $ 0.04 =========== =========== =========== =========== See Accompanying Notes
THOMAS NELSON, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands)
Six Months Ended September 30, -------------------------------- 1999 1998 ------------- -------------- (Unaudited) (Unaudited) CASH FLOWS FROM CONTINUING OPERATING ACTIVITIES: Net income $ 5,632 $ 5,639 Adjustments to reconcile net income to net cash provided by (used in) operations: Depreciation and amortization 4,073 4,422 Changes in assets and liabilities, net of acquisitions and disposals: Accounts receivable, net ( 4,084) ( 16,473) Inventories 1,886 ( 4,914) Prepaid expenses 347 ( 3,206) Accounts payable and accrued expenses ( 5,966) 562 Income taxes currently payable and deferred ( 284) ( 1,523) -------------- -------------- Net cash provided by (used in) continuing operations 1,604 ( 15,493) -------------- -------------- Discontinued operations: Changes in discontinued assets 33 ( 1,349) -------------- -------------- Net cash provided by (used in) discontinued operations 33 ( 1,349) -------------- -------------- Net cash provided by (used in) operating activities 1,637 ( 16,842) -------------- -------------- CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures ( 578) ( 1,384) Proceeds from sales of property, plant and equipment 421 1,408 Purchase of net assets of acquired companies - net of cash received ( 4,069) - Changes in other assets and deferred charges ( 653) ( 2,083) -------------- -------------- Net cash used in investing activities ( 4,879) ( 2,059) -------------- -------------- CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings under line of credit 14,150 20,500 Payments under capital lease obligation ( 11) ( 131) Payments on long-term debt ( 6,019) ( 5,006) Dividends paid ( 1,140) ( 1,290) Proceeds from issuance of common stock 1 47 Common stock repurchased and retired ( 1,649) ( 32,757) Other financing activities 161 ( 197) -------------- -------------- Net cash provided by (used in) financing activities 5,493 ( 18,834) -------------- -------------- Net increase (decrease) in cash and cash equivalents 2,251 ( 37,735) Cash and cash equivalents at beginning of period 609 39,713 -------------- -------------- Cash and cash equivalents at end of period $ 2,860 $ 1,978 ============== ============== Supplemental disclosures of non-cash investing and financing activities: Dividends accrued and unpaid $ 569 $ 590
THOMAS NELSON, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note A - Basis of Presentation The accompanying unaudited consolidated financial statements reflect all adjustments (which are of a normal recurring nature) that are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to SEC rules and regulations. The statements should be read in conjunction with the Summary of Significant Accounting Policies and notes to the consolidated financial statements included in the Company's annual report for the year ended March 31, 1999. The balance sheet and related information in these notes as of March 31, 1999 have been taken from the audited consolidated financial statements as of that date. Certain reclassifications have been made to conform presentation of the fiscal 1999 financial statements with fiscal 2000 presentation. Note B - New Pronouncements Reporting on the Costs of Start-Up Activities: Effective April 1, 1999, the Company adopted Statement of Position 98-5, "Reporting on the Costs of Start-up Activities" ("SOP 98- 5"). SOP 98-5 requires the costs of start-up activities and organization costs, as defined, to be expensed as incurred. The adoption of this pronouncement has not had a material impact on the Company's results of operations, financial condition or cash flows. Note C - Inventories Components of inventories consisted of the following (in thousands):
September 30, March 31, September 30, 1999 1999 1998 ---------- ---------- ---------- (C> Finished goods $ 58,761 $ 56,610 $ 62,702 Raw materials and work in process 7,511 9,195 12,802 ----------- ----------- ----------- $ 66,272 $ 65,805 $ 75,504 =========== =========== ===========
Note D - Cash Dividend On May 20, 1999, the Company's board of directors declared a cash dividend of $.04 per share of Common and Class B Common Stock. The dividend was paid August 16, 1999, to shareholders of record on August 2, 1999. On August 19, 1999, the Company's board of directors declared a cash dividend of $.04 per share of Common and Class B Common Stock. The dividend is payable November 15, 1999 to shareholders of record on November 1, 1999. Note E - Operating Segments The Company adopted SFAS No. 131, "Disclosure About Segments of an Enterprise and Related Information," at March 31, 1999, which changes the way the Company reports information about its operating segments. The Company is organized and managed based upon its products. The Company has two reportable business segments, identified as publishing and gift. The publishing segment primarily creates and markets Bibles, inspirational books and videos. The gift segment primarily designs and markets stationery items including albums, journals, etc. Summarized financial information concerning the Company's reportable segments is shown in the following table. The "Other" column includes corporate related items not allocated to reportable segments (in thousands).
Three Months Ended Publishing Gift Other Total - ------------------- ---------- ----------- ----------- ----------- September 30, 1999: Revenues $ 41,141 $ 28,969 $ - $ 70,110 Operating income 4,073 4,006 - 8,079 Identifiable assets 126,675 72,715 65,036 264,426 September 30, 1998: Revenues $ 41,663 $ 28,782 $ - $ 70,445 Operating income 5,372 3,240 - 8,612 Identifiable assets 135,320 76,577 60,039 271,936
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations OVERVIEW The following table sets forth for the periods indicated certain selected statements of operations data of the Company expressed as a percentage of net revenues and the percentage change in dollars in such data from the prior fiscal year.
Six Months Ended Fiscal September 30, Year-to-Year -------- -------- Increase 1999 1998 (Decrease) -------- -------- ---------- (%) (%) (%) Net revenues Publishing 62.3 58.1 9.7 Gift 37.7 41.9 (8.2) ------- ------- Total net revenues 100.0 100.0 2.2 ------- ------- Expenses Cost of goods sold 55.4 53.4 6.2 Selling, general and administrative 34.9 36.7 (2.9) Amortization of goodwill and non-compete agreements 0.6 0.6 (6.6) ------- ------- Total expenses 90.9 90.7 2.4 -------- ------- Operating income 9.1 9.3 0.4 ======== ======= Net income 4.4 4.5 (0.1) ======== =======
The Company's net revenues fluctuate seasonal- ly, with net revenues in the first fiscal quarter historically being lower than those for the remainder of the year. This seasonality is the result of increased consumer purchases of the Company's products during the traditional holiday periods. In addition, the Company's quarterly operating results may fluctuate significantly due to the seasonality of new product introductions, the timing of selling and marketing expenses and changes in sales and product mixes. This Form 10-Q contains certain forward- looking statements within the meaning of the federal securities laws, which are intended to be covered by the safe harbors created thereby. Those statements include any statement other than with respect to historical fact, but may not be limited to, the discussions of the Company's operating and growth strategy, including its development plans and possible acquisitions. Investors are cautioned that all forward-looking statements involve risks and uncertainties. Actual results could differ materially from those reflected by the forward- looking statements and a number of factors may affect future results, liquidity and capital resources. These factors include softness in the general retail environment, the timing of products being introduced into the market, the level of returns experienced by operating divisions, the level of margins achievable in the marketplace and the ability to minimize operating expenses. Although the Company believes it has the business strategy and resources needed for improved operations, future revenue and margin trends cannot be reliably predicted and may cause the Company to adjust its business strategy during the remainder of fiscal 2000. The Company disclaims any intent or obligation to update forward- looking statements. Results of Operations Net revenues for the first six months of fiscal 2000 increased $2.8 million, or 2.2%, and for the second quarter decreased $300,000, or 0.5%, over the same periods in fiscal 1999. The publishing product net revenues for the first six months increased $7.1 million, or 9.7%, and for the second quarter decreased $500,000, or 1.3%, compared to the prior year. The variances for both periods of fiscal 2000 were negatively impacted by a somewhat higher than expected rate of returned products on book titles published last fiscal year. Net revenues for the first six months were positively impacted by a book from one of the Company's major authors being released in the first quarter of fiscal 2000 with no comparable release in the prior year period. Net revenues from gift products for the first six months decreased $4.3 million, or 8.2%, and for the second quarter increased $200,000, or 0.7%, compared to the prior year. The decreases were primarily due to timing of special product programs with mass merchandisers and the temporary effect of the restructuring of the gift sales force. In fiscal 1999, first quarter revenues reflected a major program with one of our larger mass merchants and there was no comparable program in this year's first quarter. Price increases did not have a material effect on net revenues. The Company's cost of goods sold increased for the first six months of fiscal 2000 by $4.2 million, or 6.2%, and for the second quarter by $1.2 million, or 3.2%, over the same periods in fiscal 1999 and, as a percentage of net revenues, increased to 55.4% for the first six months of fiscal 2000 from 53.4% and for the second quarter to 54.7% from 52.7% in the comparable periods in fiscal 1999. The increase in cost of goods sold, as a percentage of net revenues, for both periods in fiscal 2000 resulted primarily from greater sales this year, compared to last year, of excess publishing inventory sold at or below cost. Selling, general and administrative expenses for the first six months of fiscal 2000 decreased by $1.4 million, or 2.9%, and for the second quarter decreased $1.0 million, or 4.1%, from the same periods in fiscal 1999. These expenses, expressed as a percentage of net revenues, decreased to 34.9% for the first six months of fiscal 2000 versus 36.7% and for the second quarter to 33.2% from 34.5% in the same periods in fiscal 1999. These decreases for both periods were attributable to various cost saving initiatives throughout the Company. However, the Company believes that the selling, general and administrative expenses, as a percentage of revenues, for the full year of fiscal 2000 will be comparable to that for fiscal 1999. Interest expense for the first six months and the second quarter of fiscal 2000 was relatively unchanged when compared to the same period in fiscal 1999. Liquidity and Capital Resources At September 30, 1999, the Company had $2.9 million in cash and cash equivalents. The primary sources of liquidity to meet the Company's future obligations and working capital needs are cash generated from operations and borrowings available under bank credit facilities. At September 30, 1999, the Company had working capital of $130.9 million. On June 10, 1998, the Company announced its intention to repurchase up to three million shares of common stock and/or Class B common stock from time to time in the open market or through privately negotiated transactions. As of September 30, 1999, the Company had repurchased approximately 2.9 million shares of common stock at an aggregate cost to the Company of $39.2 million. Net cash provided by (used in) operating activities was $1.6 million and ($16.8) million for the first six months of fiscal 2000 and 1999, respectively. Cash provided by operations during the first six months of fiscal 2000 was principally attributable to a decrease in inventories. Cash used in operations during the first six months of fiscal 1999 was principally attributable to an increase in accounts receivable. During the first six months of fiscal 2000, capital expenditures totaled approximately $600,000. During the remainder of fiscal 2000, the Company anticipates capital expenditures of approximately $1.7 million primarily consisting of computer and warehousing equipment. The Company's bank credit facilities are unsecured and consist of a $100 million credit facility and a $10 million credit facility (collectively, the "Credit Agreements"). The $100 million credit facility bears interest at either the prime rate or, at the Company's option, LIBOR plus a percentage, subject to adjustment based on certain financial ratios, and matures on December 13, 2005. The $10 million credit facility bears interest at LIBOR plus a percentage, subject to adjustment based on certain financial ratios, and matures on July 31, 2001. At September 30, 1999, the Company had $71 million outstanding under the Credit Agreements, and $39 million available for borrowing. Due to the seasonality of the Company's business, borrowings under the Credit Agreements typically peak during the third quarter of the fiscal year. At September 30, 1999, the Company had outstanding approximately $18.6 million of unsecured senior notes ("Senior Notes"). The Senior Notes bear interest at rates from 6.68% to 8.31% due through fiscal 2006. Under the terms of the Credit Agreements and the Senior Notes, the Company has agreed to limit the payment of dividends and to maintain certain interest coverage and debt-to-total-capital ratios which are similarly calculated for each debt agreement. At September 30, 1999, the Company was in compliance with all covenants of these debt agreements, as amended. Management believes cash generated by operations and borrowings available under the Credit Agreements will be sufficient to fund anticipated working capital requirements for existing operations through the remainder of fiscal 2000. On November 8, 1999, the Company announced that it had exercised options for the purchase of approximately 60% of the outstanding shares of New Life Treatment Centers, Inc. from a group of investors at an approximate purchase price of $13 million. The transaction, which is subject to approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and the negotiation of a definitive purchase agreement prior to closing, is expected to close during the company's third fiscal quarter ending December 31, 1999. The Company anticipates funding the purchase through borrowings under the Credit Agreements. Quantitative and Qualitative Disclosures about Market Risk There have been no material changes in the Company's investment strategies, types of financial instruments held or the risks associated with such instruments which would materially alter the market risk disclosures made in the Company's Annual Report on Form 10-K for the year ended March 31, 1999. Year 2000 Conversion The Company has established a task force to coordinate the assessment and implementation of changes to computer systems and applications necessary to become year 2000 compliant. These actions are necessary to ensure that the systems and applications will recognize and process the year 2000 and beyond with no material adverse effect on customers or disruption to business operations. The task force has also evaluated non-systems issues, e.g. security, elevators, timekeeping, etc., relative to the year 2000. In addition, the task force has been actively communicating with third parties, with whom the Company has material relationships, concerning the status of their year 2000 readiness. These third parties include the Company's financial institutions, as well as selected customers, vendors, landlords and suppliers of telecommunication services and other utilities. As part of the process of attempting to mitigate third-party risks, the task force is collecting and analyzing information from these third parties. To date, no third party has advised the Company that it anticipates specific problems regarding non-performance risk for the year 2000. As of March 31, 1999, the Company had completed all known programming revisions required in its computer systems and has completed initial testing of its systems for receipt of electronic orders, customer invoicing and other processes for transactions dated in year 2000. The Company anticipates that further compliance tests will include electronic and other communications with appropriate customers. The Company engaged consultants to test that specific systems are year 2000 compliant, which tests have been completed. In addition, the Company has also completed remediation it identified as necessary for its non-systems issues. The effect of year 2000 non-compliance on the business of the Company is difficult to predict. The Company believes that possible risks if compliance is not accomplished could include delays in receiving and/or shipping of products and in invoicing to and/or receiving payments from customers in the days immediately after January 1, 2000. The Company considers that its primary risk relates to third parties with whom the Company has material relationships, and over which the Company has no control. At this time, the Company does not believe its year 2000 risks will have a material adverse effect on the Company's results of operations, liquidity or financial condition. The Company expensed approximately $10,000 in costs during the first six months of fiscal 2000, primarily for staff coordination related to being year 2000 compliant, and expects to incur additional costs of less than $50,000 for the remainder of fiscal 2000. These fiscal 2000 costs will include costs for additional staff coordination, and will be expensed as they are incurred. As of March 31, 1999, the task force had completed a contingency plan to address financial and operational problems that might arise on and around January 1, 2000. This contingency plan identifies alternate vendors and back-up processes that do not rely on computers, whenever possible. The following areas have been addressed in the contingency plan: purchasing, product development, distribution, collections, royalties, marketing, sales, facilities and telecommunications. In the event that additional risks are identified, particularly in communicating with third parties, the task force will re-evaluate the plan. PART II Item 6. Exhibits and Reports on Form 8-K (a) Exhibits required by Item 601 of Regulation S-K Exhibit 11- Statement re Computation of Per Share Earnings Exhibit 27- Financial Data Schedule (b) No Form 8-K was filed by the Company during the quarter ended September 30, 1999. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Thomas Nelson, Inc. (Registrant) November 15 , 1999 BY Joe L. Powers - ------------------- ------------------------ Joe L. Powers Executive Vice President (Principal Financial and Accounting Officer) INDEX TO EXHIBITS Exhibit Number - ------- 11 -- Statement re Computation of Per Share Earnings 27 -- Financial Data Schedule (for SEC purposes only) EX-27 2
5 This schedule contains summary financial information from the Company's 10Q for the period ended September 30, 1999 and is qualified in its entirety by reference to such financial statements and the notes thereto. 1,000 6-MOS MAR-31-2000 APR-01-1999 SEP-30-1999 2,860 0 89,328 6,914 66,272 170,788 49,691 24,982 264,426 39,849 90,066 0 0 14,231 114,346 264,426 127,560 129,226 71,638 116,713 763 905 3,144 8,855 3,223 5,632 0 0 0 5,632 0.40 0.40
EX-11 3 EXHIBIT 11 STATEMENT RE-COMPUTATION OF PER SHARE EARNINGS (Dollars in thousands, except per share data)
Six Months Ended Three Months Ended September 30, September 30, 1999 1998 1999 1998 --------- --------- --------- --------- (Unaudited)(Unaudited)(Unaudited)(Unaudited) BASIC EARNINGS PER SHARE: Weighted average shares outstanding 14,253 15,886 14,227 15,055 ======== ======== ======= ======= Net income $ 5,632 $ 5,639 $4,252 $4,383 ======== ======== ======= ======= Income per share $ 0.40 $ 0.35 $ 0.30 $ 0.29 ======== ======== ======= ======= DILUTED EARNINGS PER SHARE: Weighted average shares outstanding 14,253 15,886 14,227 15,055 Dilutive effect of common stock options 5 76 3 80 Convertible notes - 3,198 - 3,172 -------- -------- ------- ------- Total shares 14,258 19,160 14,230 18,307 ======== ======== ======= ======= Net income (F1) $ 5,632 $ 6,699 $ 4,252 $ 4,903 ======== ======== ======== ======= Income per share per share $ 0.40 $ 0.35 $ 0.30 $ 0.27 ======== ======== ======= ======= Adjusted for interest on convertible debt for 1998
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