-----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, ECNQIQwg3vKP7poL4AFEUy7cO/56QAVt9yAuuZBItobT+NyHENO6Fh/1mJU4Cwcv QaTtpo+NBh2OeFil4Jegjg== 0000912057-96-026539.txt : 19961118 0000912057-96-026539.hdr.sgml : 19961118 ACCESSION NUMBER: 0000912057-96-026539 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961114 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: EXPEDITORS INTERNATIONAL OF WASHINGTON INC CENTRAL INDEX KEY: 0000746515 STANDARD INDUSTRIAL CLASSIFICATION: ARRANGEMENT OF TRANSPORTATION OF FREIGHT & CARGO [4731] IRS NUMBER: 911069248 STATE OF INCORPORATION: WA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-13468 FILM NUMBER: 96666025 BUSINESS ADDRESS: STREET 1: 19119 16TH AVE S STREET 2: P.O.BOX 69620 CITY: SEATTLE STATE: WA ZIP: 98188 BUSINESS PHONE: 206-246-3711 MAIL ADDRESS: STREET 1: 19119 16TH AVENUE SOUTH STREET 2: P.O.BOX 69620 CITY: SEATTLE STATE: WA ZIP: 98168-9620 10-Q 1 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 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, 1996 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: 0-13468 EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. (Exact name of registrant as specified in its charter) Washington 91-1069248 (State of other jurisdiction of incorporation or organization) (IRS Employer Identification Number) 999 Third Avenue, Suite 2500, Seattle, Washington 98104 (Address of principal executive offices) (Zip Code) (206) 674-3400 (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 At November 11, 1996, the number of shares outstanding of the issuer's Common Stock was 12,102,252. Page 1 of 14 pages. The Exhibit Index appears on page 13. 1 PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS. EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands, except share data) September 30, December 31, ASSETS 1996 1995 - ------- ------------- ------------ (Unaudited) Current assets: Cash and cash equivalents $ 41,427 36,142 Short term investments 471 457 Accounts receivable, net 161,418 123,793 Deferred Federal and state taxes 5,192 4,113 Other current assets 5,199 3,862 ------------- ------------ Total current assets 213,707 168,367 Property and equipment, net 42,546 28,242 Other assets, net 10,660 7,519 ------------- ------------ $ 266,913 204,128 ------------- ------------ ------------- ------------ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short term borrowings $ 16,663 285 Accounts payable 94,451 72,238 Income taxes 4,565 3,284 Other current liabilities 17,345 11,129 ------------- ------------ Total current liabilities 133,024 86,936 Shareholders' equity: Preferred stock, par value $.01 per share. Authorized 2,000,000 shares; none issued -- -- Common stock, par value $.01 per share. Authorized 40,000,000 shares; issued and outstanding 12,112,927 shares at September 30, 1996, and 12,010,663 at December 31, 1995 121 120 Additional paid-in capital 13,816 13,129 Retained earnings 116,804 100,928 Equity adjustments from foreign currency translation 3,148 3,015 ------------- ------------ Total shareholders' equity 133,889 117,192 ------------- ------------ $ 266,913 204,128 ------------- ------------ ------------- ------------ 2 EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Earnings (In thousands, except share data) (Unaudited)
Three months ended Nine months Ended September 30, September 30, --------------------- ------------------ 1996 1995 1996 1995 ---- ---- ---- ---- Revenues: Airfreight $ 142,071 107,699 350,652 293,325 Ocean freight 44,310 37,355 108,964 90,234 Customs brokerage and import services 18,511 14,114 49,152 40,007 --------- ------- ------- ------- Total revenues 204,892 159,168 508,768 423,566 --------- ------- ------- ------- --------- ------- ------- ------- Operating expenses: Airfreight consolidation 115,778 88,518 282,899 242,042 Ocean freight consolidation 32,881 29,378 81,774 70,234 Salaries and related costs 29,311 22,362 77,952 61,209 Rent 2,264 1,792 6,158 4,959 Other 12,576 9,357 33,972 26,163 --------- ------- ------- ------- Total operating expenses 192,810 151,407 482,755 404,607 Operating income 12,082 7,761 26,013 18,959 Other income, net 459 327 1,611 1,206 --------- ------- ------- ------- Earnings before income taxes 12,541 8,088 27,624 20,165 Income tax expense 4,861 3,073 10,784 7,845 --------- ------- ------- ------- Net earnings $ 7,680 5,015 16,840 12,320 --------- ------- ------- ------- --------- ------- ------- ------- Net earnings per share $.60 $.40 $1.32 $.98 --------- ------- ------- ------- --------- ------- ------- ------- Weighted average number of common shares 12,844,761 12,626,489 12,770,229 12,543,145 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
3 EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)
Three months ended Nine months Ended September 30, September 30, --------------------- ------------------ 1996 1995 1996 1995 ---- ---- ---- ---- Operating Activities: Net earnings $ 7,680 5,015 16,840 12,320 Adjustments to reconcile net earnings to net cash provided by operating activities: Provision for losses on accounts receivable 446 83 1,305 326 Deferred income tax expense (benefit) 132 (560) (421) (95) Depreciation and amortization 2070 1,686 5,899 4,820 Other 235 80 430 207 Changes in operating assets and liabilities: Increase in accounts receivable (19,686) (31,643) (39,804) (49,557) Decrease (Increase) in other current assets 757 (84) (1,365) (2,807) Increase in accounts payable and other current liabilities 11,705 26,303 29,495 36,768 -------- -------- -------- ------- Net cash provided by operating activities 3,339 880 12,379 1,982 -------- -------- -------- ------- Investing Activities: Decrease (Increase) in short- term investments 1,584 (1,239) (17) 279 Purchase of property and equipment (2,602) (2,595) (20,509) (6,482) Other 988 530 (1,746) (371) -------- -------- -------- ------- Net cash used in investing activities (30) (3,304) (22,272) (6,574) -------- -------- -------- ------- Financing Activities: Short-term borrowings, net 2,945 9,769 16,413 13,648 Proceeds from issuance of common stock 1,625 1,402 2,570 1,817 Repurchases of common stock (1,690) (1,360) (2,541) (1,775) Dividends paid -- -- (964) (717) -------- -------- -------- ------- Net cash provided by financing activities 2,880 9,811 15,478 12,973 Effect of exchange rate changes on cash (253) (311) (300) 69 -------- -------- -------- ------- Increase in cash and cash equivalents 5,936 7,076 5,285 8,450 Cash and cash equivalents at beginning of period 35,491 22,801 36,142 21,427 -------- -------- -------- ------- Cash and cash equivalents at end of period $ 41,427 29,877 41,427 29,877 -------- -------- -------- ------- -------- -------- -------- -------
4 EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements Note 1. Summary of Significant Accounting Policies The attached condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. As a result, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. The Company believes that the disclosures made are adequate to make the information presented not misleading. The condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. Certain 1995 amounts have been reclassified to conform to the 1996 presentation. These condensed consolidated financial statements should be read in conjunction with the financial statements and related notes included in the Company's report on Form 10-K as filed with the Securities and Exchange Commission on or about April 1, 1996. Note 2. Stock Transactions On November 12, 1996, the Company announced that the Board of Directors declared a 2-for-1 stock split effected in the form of a stock dividend. The certificates representing additional shares received in the stock dividend will be distributed on or about December 11, 1996 to shareholders of record as of November 25, 1996. The Board of Directors also increased the authorized Common Stock from 40,000,000 to 80,000,000 and this increase will be effective with the filing of the revised Articles of Incorporation with the Secretary of State for the state of Washington during November 1996. 5 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS GENERAL Expeditors International of Washington, Inc. is engaged in the business of global logistics management, including international freight forwarding and consolidation, for both air and ocean freight. The Company also acts as a customs broker in all United States offices, and in many of its other offices. The Company also provides additional services for its customers including value added distribution, purchase order management, vendor consolidation and other logistics solutions. The Company offers domestic forwarding services only in conjunction with international shipments. The Company does not compete for overnight courier or small parcel business. The Company does not own or operate aircraft or steamships. International trade is influenced by many factors, including economic and political conditions in the United States and abroad, currency exchange rates, and United States and foreign laws and policies relating to tariffs, trade restrictions, foreign investments and taxation. Periodically, governments consider a variety of changes to current tariffs and trade restrictions. The Company cannot predict which, if any, of these proposals may be adopted. Nor can the Company predict the effects adoption of any such proposal will have on the Company's business. Doing business in foreign locations also subjects the Company to a variety of risks and considerations not normally encountered by domestic enterprises. In addition to being affected by governmental policies concerning international trade, the Company's business may also be affected by political developments and changes in government personnel or policies in the nations in which it does business. The Company's ability to provide services to its customers is highly dependant on good working relationships with a variety of entities including airlines, ocean carriers and governmental agencies. The Company considers its current working relationships with these entities to be satisfactory. However, changes in space allotments available from carriers, governmental deregulation efforts, "modernization" of the regulations governing customs brokerage, and/or changes in governmental quota restrictions could affect the Company's business in unpredictable ways. Historically, the Company's operating results have been subject to a seasonal trend when measured on a quarterly basis. The first quarter has traditionally been the weakest and the third quarter has traditionally been the strongest. This pattern is the result of, or is influenced by, numerous factors including climate, national holidays, consumer demand, economic conditions and a myriad of other similar and subtle forces. In addition, this historical quarterly trend has been influenced by the growth and diversification of the Company's international network and service offerings. The Company cannot accurately forecast many of these factors nor can the Company estimate accurately the relative influence of any particular factor and, as a result, there can be no assurance that historical patterns, if any, will continue in future periods. A significant portion of the Company's revenues are derived from customers in industries whose shipping patterns are tied closely to consumer demand, and from customers in industries whose shipping patterns are dependent upon just-in-time production schedules. Therefore, the timing of the Company's revenues are, to a large degree, impacted by factors out of the Company's control, such as a sudden change in consumer demand for retail goods and/or manufacturing production delays. Additionally, many customers ship a significant portion of their goods at or near the end of a quarter, and therefore, the Company may not learn of a shortfall in revenues until late in a quarter. To the extent that a shortfall in revenues or earnings was not expected by securities analysts, any such shortfall from levels predicted by securities analysts could have an immediate and adverse effect on the trading price of the Company's stock. 6 RESULTS OF OPERATIONS The following table shows the consolidated net revenues (revenues less consolidation expenses) attributable to the Company's principal services and the Company's expenses for the three and nine-month periods ended September 30, 1996 and 1995, expressed as percentages of net revenues. With respect to the Company's services other than freight consolidation, net revenues are identical to revenues. Management believes that net revenues are a better measure than total revenues of the relative importance of the Company's principal services since total revenues earned by the Company as a freight consolidator include the carriers' charges to the Company for carrying the shipment whereas revenues earned by the Company in its other capacities include only the commissions and fees actually earned by the Company. The table and the accompanying discussion and analysis should be read in conjunction with the condensed consolidated financial statements and related notes thereto which appear elsewhere in this Quarterly Report.
Three months ended September 30, Nine months ended September 30, 1996 1995 1996 1995 -------------------------------- --------------------------------- Percent Percent Percent Percent of net of net of net of net Amount revenues Amount revenues Amount revenues Amount revenues ------ -------- ------ -------- ------ -------- ------ -------- (Amounts in thousands) Net Revenues: Airfreight $ 26,293 47 19,181 47 $67,753 47 51,283 46 Ocean freight 11,429 20 7,977 19 27,190 19 20,000 18 Customs brokerage and import services 18,511 33 14,114 34 49,152 34 40,007 36 -------- --- ------- --- ------- ---- ------- ---- Net revenues 56,233 100 41,272 100 144,095 100 111,290 100 -------- --- ------- --- ------- ---- ------- ---- Operating expenses: Salaries and related costs 29,311 52 22,362 54 77,952 54 61,209 55 Other 14,840 27 11,149 27 40,130 28 31,122 28 -------- --- ------- --- ------- ---- ------- ---- Total operating expenses 44,151 79 33,511 81 118,082 82 92,331 83 -------- --- ------- --- ------- ---- ------- ---- Operating income 12,082 21 7,761 19 26,013 18 18,959 17 Other income, net 459 1 327 1 1,611 1 1,206 1 -------- --- ------- --- ------- ---- ------- ---- Earnings before income taxes 12,541 22 8,088 20 27,624 19 20,165 18 Income tax expense 4,861 8 3,073 7 10,784 7 7,845 7 -------- --- ------- --- ------- ---- ------- ---- Net earnings $ 7,680 14% $ 5,015 13% $ 16,840 12% $12,320 11% -------- --- ------- --- ------- ---- ------- ---- -------- --- ------- --- ------- ---- ------- ----
7 Air freight net revenues increased 37% and 32%, respectively for the three and nine-month periods ended September 30, 1996 as compared with the same period for 1995. This increase was primarily due to (1) increased airfreight tonnage handled by the Company from the Far East, North America and Europe and (2) increased prices charged by airlines which were passed along to customers. Management also believes that the Company was more efficient during the three and nine-month periods ended September 30, 1996 in the handling and routing of shipments through key export gateway locations, particularly in North America. To the extent that it is successful in increasing its concentration of export freight in key export gateway locations, the Company has been able to take advantage of the volume, weight and service-related incentives offered by the direct air carriers. Ocean freight net revenues increased 43% and 36%, respectively for the three and nine-month periods ended September 30, 1996 as compared with the same period for 1995 as a result of a Company decision to aggressively market extremely competitive ocean freight rates to its customers, primarily on freight moving eastbound from the Far East. During the first three months of 1996, there was severe pricing pressure on this lane. Despite falling prices, the Company was able to substantially maintain margins and expand market share, a development management believes to be significant in assessing its strength in the highly competitive transpacific NVOCC (Non-Vessel Operating Common Carrier) market. During the three months ended September 30, 1996, the pricing situation continues to stabilize allowing moderate margin expansion in the third quarter. In addition to increases in the traditional NVOCC and ocean forwarding business, ECMS (Expeditors Cargo Management Systems), the Company's ocean freight consolidation management and purchase order tracking service, provided new business. Customs brokerage and import services increased 31% and 23% for the three and nine-month periods ended September 30, 1996 as compared with the same period for 1995 as a result of (1) the Company's growing reputation for providing high quality service; (2)consolidation within the customs brokerage market as customers seek out customs brokers with the sophisticated computerized capabilities critical to an overall logistics management program, and (3) the growing importance of distribution services as a separate and distinct service offered to existing and potential customers. Salaries and related costs increased during the three and nine-month periods ended September 30, 1996 compared with the same period in 1995 as a result of (1) the Company's increased hiring of sales, operations, and administrative personnel in existing and new offices to accommodate increases in business activity and (2) increased compensation levels. Salaries and related costs have, however, decreased marginally as a percentage of net revenue--a measure that management believes is significant in assessing the effectiveness of corporate cost containment objectives. The relatively consistent relationship between salaries and net revenues is the result of a compensation philosophy that has been maintained since the inception of the Company: offer a modest base salary and the opportunity to share in a fixed and determinable percentage of the operating profit of the business unit controlled by each key employee. Using this compensation model, changes in individual compensation will occur in proportion to changes in Company profits. Management believes that the organic growth in revenues, net revenue and net income for the three and nine-month periods ended September 30, 1996 and 1995 are a direct result of the incentives inherent in the Company's compensation program. Other operating expenses increased for the three and nine-month periods ended September 30, 1996 as compared with the same period in 1995 as rent expense, communications expense, quality and training expenses, and other costs expanded to accommodate the Company's growing operations. Other operating expenses as a percentage of net revenues remained constant for the three and nine-month periods ended September 30, 1996, as compared with the same periods in 1995. 8 Other income, net, increased for the three and nine-month periods ended September 30, 1996 as compared with the same periods in 1995 primarily due to higher interest income from increased cash flow. The Company pays income taxes in the United States and other jurisdictions. In addition the Company pays various other taxes, which are typically included in costs of operations. Effective income tax rates per financial statements during the three and nine-month periods ended September 30, 1996 were virtually constant as compared with the same periods in 1995. Currency and Other Risk Factors International air/ocean freight forwarding and customs brokerage are intensively competitive and are expected to remain so for the foreseeable future. There are a large number of entities competing in various portions of the global logistics industry, however, the Company's primary competition is confined to a relatively small number of companies within this group. While there is currently a marked trend within the industry toward consolidation into large firms with multinational office and agency networks, regional and local broker/forwarders remain a competitive force. Historically, the primary competitive factors in the global logistics industry have been price and quality of service, including reliability, responsiveness, expertise, convenience, and scope of operations. The Company emphasizes quality service and believes that its prices are competitive with those of others in the industry. Recently customers have exhibited a trend toward the more sophisticated and efficient procedures for the management of the logistics supply chain by embracing strategies such as just-in-time inventory management. Accordingly, sophisticated computerized customer service capabilities and a stable worldwide network have become significant factors in attracting and retaining customers. Developing these systems and a worldwide network has added a considerable indirect cost to the services provided to customers. Smaller and middle-tier competitors, in general, do not have the resources available to develop customized systems and worldwide network. As a result, there is a significant amount of consolidation currently taking place in the industry. Management expects that this trend toward consolidation will continue for the short to medium term. Historically, growth through aggressive acquisition has proven to be a challenge for many of the Company's competitors and typically involves the purchase of significant "goodwill", the value of which can be realized in large measure only by retaining the customers and profit margins of the acquired business. As a result, the Company has pursued a strategy emphasizing organic growth supplemented by certain strategic acquisitions. The nature of the Company's worldwide operations necessitates the Company dealing with a multitude of currencies other than the U.S. dollar. This results in the Company being exposed to the inherent risks of the international currency markets and governmental interference. Many of the countries where the Company maintains offices and/or agency relationships have strict currency control regulations which influence the Company's ability to hedge foreign currency exposure. The Company tries to compensate for these exposures by accelerating international currency settlements among these offices or agents. Foreign currency gains and losses recognized during the first three quarters of 1996 and 1995 were immaterial. The Company has traditionally generated revenues from air freight, ocean freight and customs brokerage and other import services. In light of the customer-driven trend to provide customer rates on a door-to-door basis, management foresees the potential, in the medium to long-term, for fees normally associated with customs house brokerage to be de-emphasized and included as a component of other services offered by the Company. 9 Liquidity and Capital Resources The Company's principal source of liquidity is cash generated from operations. At September 30, 1996, working capital was $81 million, including cash and short-term investments of $42 million. The Company had no long-term debt at September 30, 1996. While the nature of its business does not require an extensive investment in property and equipment, the Company is continuously looking for suitable facilities and/or property to acquire at or near airports in certain cities in North America and overseas. The Company expects to spend approximately $31 million on property and equipment in 1996, which is expected to be financed with cash, short-term floating rate and/or long-term fixed-rate borrowings. The Company maintains foreign and domestic borrowings under unsecured bank lines of credit totaling $15 million. At September 30, 1996, the Company was directly liable for $11.1 drawn on these lines of credit and was contingently liable for an additional $13.726 million of standby letters of credit. In addition, the Company maintains a bank facility with its U.K. bank for $7.75 million of which the Company was contingently liable for $7.4 million. Management believes that the Company's current cash position, bank financing arrangements, and operating cash flows will be sufficient to meet its capital and liquidity requirements for the foreseeable future. In some cases, the Company's ability to repatriate funds from foreign operations may be subject to foreign exchange controls. In addition, certain undistributed earnings of the Company's subsidiaries accumulated through December 31, 1992 would, under most circumstances, be subject to some additional United States income tax if distributed to the Company. The Company has not provided for this additional tax because the Company intends to reinvest such earnings to fund the expansion of its foreign activities, or to distribute them in a manner in which no significant additional taxes would be incurred. 10 EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES PART II. OTHER INFORMATION Item 1. LEGAL PROCEEDINGS The Company is ordinarily involved in claims and lawsuits which arise in the normal course of business, none of which currently, in management's opinion, will have a significant effect on the Company's financial condition. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits required by Item 601 of Regulation S-K. Exhibit Number Description ------- ----------- 11.1 Statement re computation of per share earnings (b) Reports on Form 8-K No reports on Form 8-K were filed in the quarter ended September 30, 1996. 11 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. November 13, 1996 /s/ PETER J. ROSE ------------------------------------------------ Peter J. Rose, Chairman and Chief Executive Officer (Principal Executive Officer) November 13, 1996 /s/ R. JORDAN GATES ------------------------------------------------ R. Jordan Gates, Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer) 12 EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES Form 10-Q Index and Exhibits September 30, 1996 Exhibit Number Description Page Number - ------- ----------- ----------- 11.1 Statement re computation of per share earnings 13 EX-11.1 2 EXHIBIT 11.1 EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES Exhibit 11.1 Statement re computation of per share earnings Net earnings per weighted average common share is computed using the weighted average number of common shares and common share equivalents outstanding during each period presented. Common share equivalents represent stock options. Fully diluted earnings per share do not differ materially from primary earnings per share. 14 EX-27 3 EXHIBIT 27 (FDS)
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SET FORTH AS ITEM 1 OF FORM 10-Q FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 9-MOS DEC-31-1996 JAN-01-1996 SEP-30-1996 41,427 471 161,418 0 0 213,707 42,546 0 266,913 133,024 4 0 0 121 133,768 266,913 0 508,768 0 364,673 118,082 0 0 27,624 10,784 0 0 0 0 16,840 1.32 1.32
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