0000931763-95-000134.txt : 19950815 0000931763-95-000134.hdr.sgml : 19950815 ACCESSION NUMBER: 0000931763-95-000134 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950814 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: EAGLE BANCSHARES INC CENTRAL INDEX KEY: 0000783604 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 581640222 STATE OF INCORPORATION: GA FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-14379 FILM NUMBER: 95563077 BUSINESS ADDRESS: STREET 1: 4305 LYNBURN DR CITY: TUCKER STATE: GA ZIP: 30084-4441 BUSINESS PHONE: 4049086690 MAIL ADDRESS: STREET 1: 4304 LYNBURN DRIVE CITY: TUCKER STATE: GA ZIP: 30084 10-Q 1 FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1995 ------------- 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 0-14379 --------- EAGLE BANCSHARES, INC. -------------------------------------------------------------------- (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) Georgia 58-1640222 ------------------------------- ------------------------ (STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.) 4305 Lynburn Drive, Tucker, Georgia 30084-4441 ----------------------------------------------------------------- (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE) (404) 908-6690 ---------------------------------------------------- (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE) Not Applicable ---------------------------------------------------------------------- (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 ------- ------ APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS: Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes No NOT APPLICABLE ----- ------ ----------------- APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Class Outstanding at July 31, 1995 ------------------- ---------------------------- Common Stock, $1.00 Par Value 1,556,100 shares Index of Exhibit on Page 15 EAGLE BANCSHARES, INC. AND SUBSIDIARIES FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 1995 TABLE OF CONTENTS Page Number PART I. Financial Information Item 1. Financial Statements Consolidated Statements of Financial Condition at June 30, 1995 and March 31, 1995 3 Consolidated Statements of Income - Three months ended June 30, 1995 and 1994 4 Consolidated Statements of Cash Flows - Three months ended June 30, 1995 and 1994 5 Notes to Consolidated Financial Statements 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 8 PART II. Other Information Item 1. Legal Proceedings 12 Item 2. Changes in Securities 12 Item 3. Defaults upon Senior Securities 12 Item 4. Submission of Matters to a Vote of Security Holders 12 Item 5. Other Information 12 Item 6. Exhibits and Reports on Form 8-K 12 Signatures 14 Index of Exhibits 15 2 EAGLE BANCSHARES, INC. CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (in thousands except per share data)
JUNE 30, March 31, 1995 1995 -------------------------------------------------------------------------- ASSETS: Cash and amounts due from banks $ 7,650 $ 6,214 Interest-bearing deposits 85 144 Loans receivable held for sale 48,369 41,220 Investment securities available for sale 20,440 20,939 Investment securities held to maturity 56,620 57,599 Loans receivable, net 319,553 303,906 Stock in Federal Home Loan Bank, at cost 6,291 5,984 Premises and equipment 9,161 8,299 Real estate acquired in settle of loans, net 583 615 Real estate held for development and sale 8,918 6,620 Accrued interest receivable 3,236 2,996 Other assets 4,431 2,781 -------------------------------------------------------------------------- Total assets $485,337 457,317 -------------------------------------------------------------------------- LIABILITIES AND STOCKHOLDERS EQUITY LIABILITIES: Deposits $305,754 286,315 Advance payments by borrowers for property taxes and insurance 2,230 2,187 Federal Home Loan Bank advances 117,125 119,953 Deferred income taxes 586 441 Drafts outstanding 20,238 10,778 Accrued expenses and other liabilities 4,656 4,007 -------------------------------------------------------------------------- Total liabilities 450,589 423,681 -------------------------------------------------------------------------- STOCKHOLDERS EQUITY: Common stock, $1.00 par value, 10,000,000 shares authorized, 1,707,000 and 1,694,500 issued in June and March, respectively 1,707 1,695 Additional paid-in capital 8,298 8,200 Retained earnings, substantially restricted 25,753 25,075 Net unrealized gain on investment securities available for sale 319 46 Employee Stock Ownership Plan (ESOP) debt - (11) Unamortized restricted stock (253) (293) Treasury stock, 150,900 shares at cost (1,076) (1,076) -------------------------------------------------------------------------- Total stockholders equity 34,748 33,636 -------------------------------------------------------------------------- TOTAL LIABILITIES AND STOCKHOLDERS EQUITY $485,337 $457,317 --------------------------------------------------------------------------
3 EAGLE BANCSHARES, INC. CONSOLIDATED STATEMENT OF INCOME
(Unaudited) Three Months Ended (in thousands except per share data) June 30, 1995 1994 ------------------------------------------------------------ Interest income: Interest on loans $8,376 $5,608 Interest on mortgage-backed securities 439 511 Interest on investment securities and other interest earning assets 1,177 915 ------------------------------------------------------------ Total interest income 9,992 7,034 ------------------------------------------------------------ Interest expense: Interest on deposits 3,782 2,654 Interest on borrowings 1,867 447 ------------------------------------------------------------ Total interest expense 5,649 3,101 ------------------------------------------------------------ Net interest income 4,343 3,933 Provision for loan losses - 182 ------------------------------------------------------------ Net interest income after provision for loan losses 4,343 3,751 ------------------------------------------------------------ Other income: Mortgage production fees 1,065 1,069 Service charges 157 139 Gain on sale of loans - 71 Gain on sale of mortgage-backed securities - 14 Miscellaneous 474 383 ------------------------------------------------------------ Total other income 1,696 1,676 ------------------------------------------------------------ Other expenses: Salaries and employee benefits 2,704 2,506 Net occupancy expense 499 455 Provision for losses on real estate owned - 10 Federal insurance premium 160 144 Marketing Expense 102 86 Data processing 266 190 Miscellaneous 651 587 ------------------------------------------------------------ Total other expenses 4,382 3,978 ------------------------------------------------------------ Income before income taxes 1,657 1,449 Income tax expense 590 550 ------------------------------------------------------------ Net income $1,067 $ 899 ------------------------------------------------------------ EARNINGS PER SHARE $.69 $.58 ------------------------------------------------------------
4 EAGLE BANCSHARES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (in thousands) Three Months ended June 30, 1995 1994 ------------------------------------------------------------- Cash flows from operating activities: Net income $ 1,067 $ 899 Adjustments to reconcile net income to net cash used in operating activities: Depreciation, amortization and accretion 913 196 Provision for loan losses - 182 Provision for losses on real estate owned - 10 Loss (gain) on sale of real estate 11 (8) Gain on sale of loans - (71) Gain on sale of mortgage-backed securities - (14) Amortization of restricted stock award 40 110 Amortization of deferred loan fees (424) (474) Proceeds from sale of loans receivable 80,528 80,576 Originations of loans held for sale (87,677) (75,687) Changes in assets and liabilities: (Increase) decrease in accrued interest receivable (240) (723) Decrease (increase) in other assets (1,775) (1,641) Increase (decrease) in drafts outstanding 9,460 1,813 Increase (decrease) in accrued expense and other liabilities 794 (485) ------------------------------------------------------------- Net cash provided by (used in) $ 2,697 $ 4,683 operating activities ------------------------------------------------------------- Cash flows from investing activities: Purchase of investment securities available for sale - (9,112) Proceeds from sale of investment securities available for sale - 5,123 Purchases of investment securities held to maturity - (22,192) Principle payments received on investments available for sale 447 1,362 Principle payments received on investments held to maturity 836 416 Proceeds from maturities of investment securities held to maturity - 1,000 Proceeds from maturities of investment securities available for sale 464 - Loan originations, net of repayments (15,403) (13,666) Purchases of loans receivable - (3,395) Proceeds from sale of real estate acquired in settlement of loans 58 516 Purchases of FHLB stock (307) - Purchase of premises and equipment (1,506) (777) Additions to real estate held for development and sale (2,298) - ------------------------------------------------------------- Net cash (used in) provided by investing activities $(17,709) $(40,725) -------------------------------------------------------------
5 EAGLE BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED (Unaudited) (in thousands)
Three Months ended June 30, 1995 1994 ------------------------------------------------------------- Cash flows from financing activities: Net change in time deposits 22,100 12,111 Net change in demand deposit accounts (2,661) 11,424 Repayment of FHLB advances and other borrowings (87,787) (20,961) Proceeds from FHLB advances and other borrowings 84,959 33,479 Dividends paid (386) (302) Principal reduction of ESOP debt 11 53 Proceeds from exercise of stock options 110 37 Increase (decrease) in advance payments from borrowers for property taxes and insurance 43 701 ------------------------------------------------------------- Net cash (used in) provided by financing activities 16,389 36,542 ------------------------------------------------------------- Net (decrease) increase in cash and cash equivalents 1,377 500 Cash and cash equivalents at beginning of year 6,358 7,858 ------------------------------------------------------------- Cash and cash equivalents at end of period $ 7,735 $ 8,358 ------------------------------------------------------------- ------------------------------------------------------------- Supplemental disclosure of cash paid during period for: ------------------------------------------------------------- Interest $ 5,739 $ 3,060 ------------------------------------------------------------- Income taxes $ 530 $ 520 ------------------------------------------------------------- Supplemental schedule of noncash investing and financing activities: ------------------------------------------------------------- Acquisition of real estate in settlement on loans $ 258 $ 203 ------------------------------------------------------------- Loans made to finance real estate $ 295 $ 575 -------------------------------------------------------------
See accompanying notes to consolidated financial statements 6 EAGLE BANCSHARES, INC. AND SUBSIDIARIES NOTES TO INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 1995 A. BASIS OF PRESENTATION: The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions for preparation of the Securities and Exchange Commission Form 10-Q. Accordingly, they do not include all of the information and disclosures required for fair presentation in accordance with generally accepted accounting principles. These financial statements should therefore be read in conjunction with management's discussion and analysis of financial condition and results of operations included in this report and the complete annual report for the year ended March 31, 1995, which has been filed with the Company's most recent Form 10-K. In the opinion of management, all eliminations and normal recurring adjustments considered necessary for fair presentation have been included. Operating results for the three month period ended June 30, 1995, are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 1996. B. RECLASSIFICATION OF PRIOR PERIOD AMOUNTS: Certain reclassifications have been made in the Company's financial statements for the prior fiscal period to conform to the classifications used in the financial statements for the current fiscal period. 7 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS ----------------------------------------------------------------------- OF OPERATIONS ------------- LIQUIDITY AND CAPITAL RESOURCES The Companys Asset and Liability Committee manages liquidity to ensure that there is sufficient cash flow to satisfy demands for credit, deposit withdrawals and other Company needs. Traditional sources of liquidity include deposits, FHLB advances and payments on loans. Savings deposits are highly dependent upon market and other conditions largely outside the Company's control; while loan principal repayments are a relatively stable source of funds. The Companys deposits increased 6.8% during the quarter from $286,315,000 at March 31, 1995 to $305,754,000 at June 30, 1995. This increase was primarily in certificates of deposit with maturities of one year or less. Under current regulations, the Association is required to maintain liquid assets at five percent or more of its net withdrawable deposits plus short-term borrowings (due in one year or less). The Association has traditionally maintained liquidity levels above the regulatory minimum and management anticipates this trend will continue. At June 30, 1995, the Association's liquidity ratio was 5.2%. Beginning April 1, 1995, the Company formed an operating subsidiary, PrimeEagle Mortgage and consolidated all real estate lending activities into this business unit. This business unit generates revenues by originating construction loans, permanent mortgage loans and Small Business Administration loans (SBA). The permanent mortgage and SBA loans are sold to investors. During the current quarter, PrimeEagle Mortgage originated approximately $88,000,000 first mortgage loans and $81,000,000 were sold and funded by investors. During the quarter ended June 1994, $76,000,000 first mortgage loans were originated and approximately $81,000,000 were funded by investors. The Company manages the funding requirements of these loans primarily with short term advances from the FHLB. In addition, outstanding commitments to originate loans, exclusive of the undisbursed portion of loans in process, increased to approximately $19.3 million at June 30, 1995 from $5.7 million at March 31, 1995. 8 REGULATORY CAPITAL The Financial Institution Reform, Recovery, and Enforcement Act (FIRREA) of 1989 established minimum capital requirements for thrift institutions. FIRREA requires savings and loan associations to have core capital of at least 3% of total assets and tangible capital of at least 1.5% of total assets. Additionally, institutions are required to meet a risk-based capital requirement consisting of 8% of the value of risk weighted assets. The Association's regulatory capital exceeds each of the above mentioned capital requirements and allows Tucker Federal to be classified as a Well Capitalized Institution under current OTS standards. Management anticipates that the Association will continue to meet the capital requirements. At June 30, 1995 the Association's regulatory capital and the required minimum amount according to FIRREA are summarized as follows:
--------------------------------------------------- Regulatory Required Excess Capital Capital Capital --------------------------------------------------- Tangible Capital $30,412 $ 7,174 $23,238 Core Capital $30,412 $14,348 $16,064 Risk-based Capital $33,800 $26,889 $ 6,911 ---------------------------------------------------
RESULTS OF OPERATIONS Net income for the three months ended June 30, 1995 was $1,067,000 or $.69 per share compared to $899,000 or $.58 per share for the three month period ended June 30, 1994. The increase in net income is attributable to an increase in net interest income and a reduced provision for loan losses. Net interest income increased 10% for the quarter ending June 30, 1995, to $4,343,000 from $3,933,000 for the quarter ending June 30, 1994. The increase is primarily the result of an increase in loans receivable. 9 NET INTEREST SPREAD A major factor influencing the profitability of the Company is the difference between the interest earned on assets and the interest paid on liabilities. This is referred to as the "net interest spread". The Company's net interest spread changes due to the repricing of assets and liabilities at different times in the economic cycle. Since this time last year the Companys net interest spread decreased 80 basis points to 3.74% for the three months ended June 30, 1995 from 4.54% for the three months ended June 30, 1994. The decreasing trend in the Company's net interest spread was anticipated by management as the cost of interest bearing liabilities increased beginning in early 1995. The overall interest earned on interest earning assets increased 37 basis points from 8.81% for the three months ended June 30, 1994 to 9.18% for the same period ended June 30, 1995. Additionally, the cost of interest bearing liabilities increased 117 basis points from 4.27% for the three months ended June 30, 1994 to 5.44% for the three months ended June 30, 1995. The following table summarizes the net interest spread for the periods indicated.
Three Month Period Ended June 30, 1995 1994 ------------------------- Weighted average yield on all interest earning assets 9.18% 8.81% Weighted average cost of all interest bearing liabilities 5.44% 4.27% -------------------------------------------------------------------------------- Net interest spread 3.74% 4.54% --------------------------------------------------------------------------------
OTHER INCOME Other income remained virtually unchanged at $1,696,000 for the three months ended June 30, 1995 compared to $1,676,000 for the three months ended June 30, 1994. The largest portion of the Companys non-interest income is generated by mortgage banking activities and mortgage production fees. Mortgage production fees represented 63 percent of total other income for the quarter ending June 30, 1995 versus 64 percent for the same quarter ended June 30, 1994. These fees are directly correlated to the volume of loans originated and sold. Loans sold and funded in the secondary market remained unchanged for the first quarter ended June 30, 1995 and June 30, 1994 at $81,000,000. For the three month period ended June 30, 1994, the Company sold mortgage-backed securities from it available for sale portfolio of approximately $5.1 million. The gain recorded on the sales was $14,000. The Company did not record any gains from the sale of loans or mortgage-backed securities for the same period ended June 30, 1995. Management does not rely on the sale of loans and mortgage-backed securities as a continuing source of income. OTHER EXPENSES Other expenses increased 10.2% for the three month period ended June 30, 1995 to $4,382,000 compared to $3,978,000 for the comparable period ending June 30, 1994. The increase is in part due to the increase in salaries and benefits from $2,506,000 for the first quarter ended June 30, 1994 to $2,704,000 for the first 10 quarter ended June 30, 1995. The increase is caused by the addition of new loan production staff . In addition, the Companys data processing expense increased as a result of the growth in the number of checking accounts and the loan servicing portfolio. RESERVE FOR LOAN LOSSES Asset quality at June 30, 1995, showed continuing strength with nonperforming assets to total assets at 0.22% compared to 0.27% at March 31, 1995. As a result, no provision for loan losses was recorded. Loan loss reserves totaled $3,388,000 at June 30, 1995 and $3,362,000 at March 31, 1995. At June 30, 1995, reserves represented 1.1% of loans receivable and real estate owned and 180.25% of problem assets. Management believes that the reserves for losses on loans are adequate based upon management's evaluation of, among other things, estimated value of the underlying collateral, loan concentrations, specific problem loans, and economic conditions that may affect the borrower's ability to repay and such other factors as, in management's judgment, deserve recognition under existing economic conditions. While management uses available information to recognize losses on loans, future additions to the allowances may be necessary based on changes in economic conditions and composition of the Association's loan portfolio. The following table summarizes problem assets for the periods indicated. NON-ACCRUAL LOANS & REAL ESTATE OWNED
June 30, March 31, March 31, March 31, March 31, (dollars in thousands) 1995 1995 1994 1993 1992 ----------------------------------------------------------------------------------- Non-accrual loans: Residential real estate $ 487 603 780 2,057 1,051 Commercial real estate - - - - - Consumer - - 7 - 87 --------------------------------------------------------------------------------------------------------------------------- Total $ 487 603 787 2,057 1,138 --------------------------------------------------------------------------------------------------------------------------- Potential problem loans 810 954 - 2,165 - Loans contractually delinquent 90 days & still accruing - - - - - Troubled debt restructurings - - - - - --------------------------------------------------------------------------------------------------------------------------- Total problem loans $ 1,297 1,557 787 4,222 1,138 --------------------------------------------------------------------------------------------------------------------------- Real estate owned, net $ 583 615 671 2,137 3,696 --------------------------------------------------------------------------------------------------------------------------- Total problem assets $ 1,880 2,172 1,458 6,359 4,834 --------------------------------------------------------------------------------------------------------------------------- Total problem assets/ Total assets .39% .47% .46% 1.98% 1.60% --------------------------------------------------------------------------------------------------------------------------- Loan loss reserve/ Total problem assets 180.25% 154.79% 229.70% 38.06% 18.45% ---------------------------------------------------------------------------------------------------------------------------
11 PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS ----------------- There are no material pending legal proceedings to which the Company, the Association or any subsidiary is a party or to which any of their property is subject. ITEM 2. CHANGES IN SECURITIES --------------------- None ITEM 3. DEFAULTS UPON SENIOR SECURITIES ------------------------------- None ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS --------------------------------------------------- The 1995 Annual Meeting of Shareholders of Eagle Bancshares, Inc. was held on July 20, 1995. A total of 1,307,576 shares of common stock which equals 84.11% of the 1,554,600 shares outstanding as of the record date were represented in person or by proxy. The Board of Directors submitted three proposals to be voted upon by shareholders: (i) the election of Weldon A. Nash, Jr. and Conrad J. Sechler, Jr. to serve as Directors for a three year term; (ii) the approval of the 1995 Employees Stock Incentive Plan; and (iii) the ratification of the Board of Directors' appointment of Arthur Anderson LLP to serve as independent auditors for the fiscal year ending March 31, 1996. Weldon A. Nash, Jr. and Conrad J. Sechler, Jr. were elected to serve as Directors for a three year period and until their successors are duly elected and qualified. Shareholder votes for the election of Directors are set forth below :
Broker For Withheld Nonvotes --------- -------- -------- Weldon A. Nash, Jr. 1,086,076 221,500 None Conrad J. Sechler, Jr. 1,269,513 38,063 None
The Directors whose names are set forth below will continue to serve for the remainder of their terms, as indicated. Director Term Expires* -------- ------------- Richard B. Inman, Jr. 1996 Charles J. Alford, Jr. 1996 Conrad J. Sechler, Sr. 1996 George G. Thompson 1998 Richard J. Burrell 1998 * The term of office will expire on the later of the date of the annual meeting of shareholders for the year indicated when their replacements are duly elected and qualified. The shareholders approved the 1995 Employees Stock Incentive Plan with 915,050 voting for, 102,056 voting against, 24,254 abstaining from voting and 266,216 broker nonvotes. 12 The appointment by the Board of Directors of Arthur Andersen to serve as independent auditors for the fiscal year ending March 31, 1996, was ratified by the shareholders. The shareholders voted 1,303,985 for Arthur Andersen, 1421 voted against and 2,170 abstained from voting. ITEM 5. OTHER INFORMATION ----------------- None ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K ---------------------------------- (11) Computation of per share earnings Reports on Form 8-K None 13 SIGNATURES Pursuant to the requirements of the Securities Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. EAGLE BANCSHARES, INC. (Registrant) Date: August 14, 1995 /s/ Conrad J. Sechler, Sr. -------------------------- Conrad J. Sechler, Sr. Chairman of the Board, Chief Executive Officer and Duly Authorized Representative Pursuant to the requirements of the Securities Act of 1934, this report has been signed below by the following persons on behalf of the Registrant in the capacities and on the dates indicated. Date: August 14, 1995 /s/ Zelma B. Martin -------------------- Zelma B. Martin Principal Financial and Accounting Officer Date: August 14, 1995 /s/ Conrad J. Sechler, Sr. -------------------------- Conrad J. Sechler, Sr. Chairman of the Board 14 EAGLE BANCSHARES, INC. INDEX OF EXHIBITS
Exhibit Number Description Page No. ------- ----------------------------------------- --------- 11 Computation of per share earnings 16
15 EX-11 2 COMPUTATION OF SHR EARNED EXHIBIT 11 EAGLE BANCSHARES, INC. Statement re: Computation of per share earnings The following computation set forth the calculation of primary earnings per share and fully diluted earnings per share for the three months ending June 30, 1995.
Three months ending June 30, 1995 --------------------------------- Primary Fully Diluted -------------------------------------------------------------------------------- Net income per share: $.69 $.69 -------------------------------------------------------------------------------- Weighted average number of common shares outstanding 1,543,721 1,543,721 Increase due to assumed exercise of dilutive stock options 20,984 30,159 -------------------------------------------------------------------------------- Adjusted weighted average number of common and common equivalent shares outstanding 1,564,705 1,573,880 --------------------------------------------------------------------------------
The dilutive effect of common stock equivalents on earnings per share is less than 3% of the quarter ending June 30, 1995; therefore, simple weighted average shares outstanding are used in computing earnings per share. EX-27 3 FINANCIAL DATA SCHEDULE
9 1,000 3-MOS MAR-31-1996 APR-01-1995 JUN-30-1995 7,650 85 0 0 20,440 56,620 58,234 319,553 3,388 485,337 305,754 0 4,656 0 1,707 0 0 33,041 485,337 8,376 1,177 439 9,992 3,782 5,649 4,343 0 0 4,382 1,657 0 0 0 1,067 .69 .69 9.18 487 0 0 810 3,362 8 34 3,388 0 0 0