-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, L2hCQO2TCds63xtJ/qW+kq9NQscLZp61u3bz3qP+msjjT5/WBOZ8w2MUMmasnDS9 rp0depSkwLjTAINflpnIHw== 0000950152-95-001038.txt : 19950518 0000950152-95-001038.hdr.sgml : 19950518 ACCESSION NUMBER: 0000950152-95-001038 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950515 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PRATT & LAMBERT UNITED INC CENTRAL INDEX KEY: 0000079920 STANDARD INDUSTRIAL CLASSIFICATION: 2851 IRS NUMBER: 160594810 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-00994 FILM NUMBER: 95539329 BUSINESS ADDRESS: STREET 1: 75 TONAWANDA ST CITY: BUFFALO STATE: NY ZIP: 14207 BUSINESS PHONE: 7168736000 MAIL ADDRESS: STREET 1: 75 TONAWANDA STREET CITY: BUFFALO STATE: NY ZIP: 14207 FORMER COMPANY: FORMER CONFORMED NAME: PRATT & LAMBERT INC DATE OF NAME CHANGE: 19920703 10-Q 1 PRATT & LAMBERT UNITED, INC. FORM 10-Q 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTER ENDED MARCH 31, 1995 - - ------------------------------------ COMMISSION FILE NUMBER 1-994 - - ---------------------------- PRATT & LAMBERT UNITED, INC. NEW YORK 16-0594810 - - -------- ---------- 75 TONAWANDA STREET, BUFFALO, NY 14207 716-873-6000 *INDICATE BY CHECK MARK WHETHER THE REGISTRANT (1) HAS FILED ALL REPORTS REQUIRED TO BE FILED BY SECTIONS 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 DURING THE PRECEDING 12 MONTHS AND (2) HAS BEEN SUBJECT TO SUCH FILING REQUIREMENTS FOR THE PAST 90 DAYS. YES X NO ----- ----- NUMBER OF COMMON SHARES, PAR VALUE $.01 PER SHARE OUTSTANDING ON: MARCH 31, 1995 10,621,867 SHARES 2 PRATT & LAMBERT UNITED, INC. AND SUBSIDIARY COMPANIES ----------------------------------------------------- INDEX -----
PART I. FINANCIAL INFORMATION Page No. - - ------------------------------ -------- Consolidated Condensed Balance Sheet - March 31, 1995 and 1994 and December 31, 1994 2 Consolidated Income Statement - Three Months Ended March 31, 1995 and 1994 3 Statement of Consolidated Cash Flows - Three Months Ended March 31, 1995 and 1994 4 Notes to Consolidated Condensed Financial Statements 5 Management's Discussion and Analysis of Financial Condition and Results of Operations 6-7 Exhibit A - Earnings Per Share Computation 8 Incorporation of Certain Information by Reference 9 Pro Forma Condensed Consolidated Financial Information: (i) Pro Forma Condensed Consolidated Statements of Operations for the Three Months ended March 31, 1994 (Unaudited) 10-11 (ii) Notes to the Pro Forma Condensed Consolidated Statements of Operations for the Three Months ended March 31, 1994 (Unaudited) 12 PART II. OTHER INFORMATION 13-14
3 PART I. FINANCIAL INFORMATION PRATT & LAMBERT UNITED, INC. AND SUBSIDIARY COMPANIES CONSOLIDATED CONDENSED BALANCE SHEET (Unaudited)
March 31 December 31 -------- ----------- 1995 1994 1994 ---- ---- ---- (Thousands of Dollars) ASSETS ------ Current Assets: Cash and Cash Equivalents $ 1,969 $ 3,245 $ 3,370 Receivables 80,595 45,919 66,644 Less - Allowance for Losses 3,440 3,496 3,470 ------- ------- ------- Receivables - Net 77,155 42,423 63,174 Inventories: Manufactured Products 44,594 25,694 35,877 Raw Materials 24,952 14,775 24,958 Sundries 1,540 1,343 1,491 ------- ------- ------- Total Inventories 71,086 41,812 62,326 Prepaid Expenses 9,790 5,821 9,459 ------- ------- ------- Total Current Assets 160,000 93,301 138,329 ------- ------- ------- Property, Plant and Equipment - At Cost 106,316 80,176 104,379 Less - Accumulated Depreciation 59,534 44,926 58,021 ------- ------- ------- Property, Plant and Equipment - Net 46,782 35,250 46,358 Goodwill - Net of Amortization 94,794 244 95,395 Other Assets 11,876 6,328 11,461 ------- ------- ------- Total Assets $313,452 $135,123 $291,543 ======= ======= ======= LIABILITIES AND SHAREHOLDERS' EQUITY ------------------------------------ Current Liabilities: Dividends Payable $ 1,593 $ 839 $ 1,590 Short-Term Debt 25,900 16,300 16,600 Current Maturities of Long-Term Debt 840 1,903 851 Accounts Payable 50,742 21,608 36,483 United States and Canadian Income Taxes 660 414 502 Other Current Liabilities 15,685 10,444 17,173 ------- ------- ------- Total Current Liabilities 95,420 51,508 73,199 ------- ------- ------- Other Liabilities (Current Maturities Included in Current Liabilities): Long-Term Debt 71,182 20,083 71,103 Deferred Income Taxes 6,825 4,688 6,845 ------- ------- ------- Total Other Liabilities 78,007 24,771 77,948 ------- ------- ------- Shareholders' Equity: Common Stock at Par Value 134 8,401 134 Additional Paid-In Capital 98,481 9,109 98,261 Retained Earnings 69,113 67,984 69,205 Cumulative Translation Adjustments (1,781) (818) (1,372) ------- ------- ------- Total 165,947 84,676 166,228 Less -- Treasury Stock - At Cost 25,922 25,832 25,832 ------- ------- ------- Total Shareholders' Equity 140,025 58,844 140,396 ------- ------- ------- Total Liabilities and Shareholders' Equity $313,452 $135,123 $291,543 ======= ======= ------- See accompanying Notes to Consolidated Condensed Financial Statements
4 PRATT & LAMBERT UNITED, INC. AND SUBSIDIARY COMPANIES CONSOLIDATED INCOME STATEMENT ----------------------------- (Unaudited)
Three Months Ended ------------------ March 31, March 31, --------- --------- 1995* 1994 ---- ---- (000's omitted except per share data) Net sales $109,894 $57,370 Cost of sales 81,612 39,917 Gross profit 28,282 17,453 Selling, administrative and general expenses 24,297 16,784 Income from operations 3,985 669 Interest expense 1,683 382 Interest income 66 18 Other income - net 303 153 Income before taxes on income 2,671 458 Taxes on income 1,170 179 Net income 1,501 279 Per common share earnings $.14 $.05 Per common share earnings - assuming full dilution $.14 $.05 Average common shares outstanding 10,615 5,586 *Note: Only the 1995 results include the sales and earnings of United Coatings, which merged with the company on August 4, 1994.
The following pro forma information was prepared under the assumption that the merger with United Coatings was effective on January 1, 1994.
Three Months Ended ------------------ March 31, March 31, --------- --------- 1995 1994 ---- ---- (000's omitted except per share data) Net sales $109,894 $98,789 Net income 1,501 1,738 Per common share earnings $.14 $.16 Per common share earnings - assuming full dilution $.14 $.16 Average common shares outstanding 10,615 10,586 See accompanying Notes to Consolidated Condensed Financial Statements
-3- 5 PRATT & LAMBERT UNITED, INC. AND SUBSIDIARY COMPANIES STATEMENT OF CONSOLIDATED CASH FLOWS ------------------------------------ (Unaudited)
Three Months Ended March 31 -------- 1995 1994 ---- ---- (Thousands of Dollars) Cash Flows from Operating Activities: Net Income $ 1,501 $ 279 Adjustments to Reconcile Net Income to Net Cash Used for Operating Activities: Depreciation 1,701 1,283 Amortization of Goodwill and Other Intangibles 646 5 Deferred Income Taxes (20) 144 Provision for Losses on Accounts Receivable (30) (167) Gain on Disposition of Property (148) 0 Changes in Operating Assets and Liabilities: (Increase) Decrease in Current Assets: Receivables (13,915) (2,580) Inventories (8,752) (3,517) Prepaid Expenses (330) (10) Increase (Decrease) in Current Liabilities: Accounts Payable 14,199 2,581 United States and Canadian Income Taxes 65 (773) Other Current Liabilities (1,794) (2,662) (Increase) Decrease in Other Assets (459) 263 ------- ------- Net Cash Used for Operating Activities (7,336) (5,154) ------- ------- Cash Flows from Investing Activities: Additions to Property, Plant and Equipment (2,156) (1,716) Proceeds from Disposition of Property 361 87 ------- ------ Net Cash Used for Investing Activities (1,795) (1,629) ------- ------ Cash Flows from Financing Activities: Dividends Paid (1,590) (837) Borrowings of Short-Term Debt 9,300 8,600 Payments on Long-Term Debt, Including Capitalized Leases (106) (199) Proceeds from Exercise of Stock Options 220 37 Purchase of Treasury Stock from Related Parties (90) 0 ------- ------ Net Cash Provided by Financing Activities 7,734 7,601 ------- ------ Effect of Exchange Rate Changes on Cash (4) (16) ------- ------ Net Increase (Decrease) in Cash (1,401) 802 Cash, Beginning of Period 3,370 2,443 ------- ------ Cash, End of Period $ 1,969 $ 3,245 ------- ------ See accompanying Notes to Consolidated Condensed Financial Statements
-4- 6 PRATT & LAMBERT UNITED, INC. AND SUBSIDIARY COMPANIES ----------------------------------------------------- NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS ---------------------------------------------------- 1. In the opinion of management, the accompanying unaudited consolidated condensed financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position as of March 31, 1995, March 31, 1994 and December 31, 1994 and the results of operations and cash flows for the three-month periods ended March 31, 1995 and 1994. 2. Results of operations for the three-month periods ended March 31, 1995 and 1994 are not necessarily indicative of the results to be expected for the full year due to the seasonal nature of the paint industry. -5- 7 PRATT & LAMBERT UNITED, INC. AND SUBSIDIARY COMPANIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL ------------------------------------------------- CONDITION AND RESULTS OF OPERATIONS ----------------------------------- Summary of significant income statement changes:
Increase (Decrease) in Comparing the Three Months Ended March 31, 1995 and 1994 ----------------------- (Thousands of Dollars) Net Sales $52,524 91.6% Cost of Sales 41,695 104.5 Selling, Administrative and General Expenses 7,513 44.8 Interest Expense 1,301 N/A Taxes on Income 991 N/A Net Income 1,222 N/A
RESULTS OF OPERATIONS: - - --------------------- On August 4, 1994, the company merged with United Coatings, Inc., a leading producer of paint for the private label market. Under the terms of the merger agreement, the company purchased all of United's outstanding stock for 5,000,000 shares of the company's common stock, approximately $17,000,000 in cash and the assumption of United's debt. As the merger has been recorded under the purchase method of accounting, United's operations since August 4, 1994, have been included in the company's 1994 financial statements. Goodwill recorded in the accompanying financial statements is lower than that used in previous pro forma statements due to the change in the company's stock price that occurred between the announcement and merger dates. Consolidated net sales increased to $109,894,000 in the first quarter of 1995 when compared to the $57,370,000 recorded in the first quarter of 1994. While sales of Pratt & Lambert branded products were higher during the 1995 quarter as a result of a new line of contractor paints introduced late last year, sales of paint products in the aggregate increased primarily as the result of the merger with United Coatings. Sales of specialty chemicals increased moderately during the 1995 quarter as strong demand for the company's industrial coatings and construction adhesives were partially offset by lower sales to the government. The increase in cost of sales, selling, administrative and general expenses and interest expense were primarily the result of the merger. Assuming that the merger with United Coatings had occurred prior to January 1, 1994, consolidated sales were $109,894,000 in 1995, an increase of $11,105,000 or 11.2% when compared to 1994 pro forma sales. While the company benefited from the sales advance, raw material costs increased at a rate faster than the company could implement selling price adjustments and higher interest rates negatively impacted the company's first quarter results. As a result, net income was $1,501,000 in the first quarter of 1995 versus the pro forma net income of $1,738,000 in the first quarter of 1994 while earnings per share in the two periods were $.14 and $.16, respectively. -6- 8 LIQUIDITY AND CAPITAL RESOURCES: - - ------------------------------- During the first quarter of 1995 the company borrowed under its lines of credit in order to finance the seasonally higher levels of inventories and accounts receivable required for its paint business. Historically, the company has increased its borrowings during the first quarter of each year and anticipates that such borrowings will be repaid by year end. To effect the merger with United Coatings and to refinance United's then existing debt, in 1994 the company borrowed $50,000,000 under a new revolving credit and term loan agreement. The company continues to maintain a favorable financial position with a current ratio of 1.7 to 1 at March 31, 1995. In addition to internal sources, the company has $43,000,000 in lines of credit to meet its short-term financing requirements. At March 31, 1995, the company had available $17,100,000 in unused credit under the above agreements. In addition, the company has revolving credit and term loan agreements which provide for borrowings of up to $70,000,000, all of which was outstanding at March 31, 1995. At March 31, 1995, the company had an authorization from the Board of Directors to purchase up to 250,200 shares of the company's common stock. Although the company did not use the authorization to purchase any of its common stock during 1994, 1993 or 1992, the company has made such purchases in prior years. Generally, the company utilizes its bank arrangements to effect such transactions and, based upon historical cash flow, management does not envision that the authorized stock repurchase program will interfere with the funding of future operational needs. As is common in the chemical industry, the company has been notified that it is a potentially responsible party with respect to hazardous waste at several sites. The company has accrued for the estimated cost of its participation in the clean-up and, based upon current information, management believes that there will not be a material future charge to earnings due to these sites. Environmental regulations have limited in the past and will likely further limit in the future the volatile organic content of the company's products. Based upon the technologies that the company has developed, management believes that in the aggregate the movement to environmentally compliant products will have a beneficial impact on the company's future operations. There were no material commitments for capital expenditures at March 31, 1995. It is anticipated that the majority of 1995 capital expenditure requirements will be financed from internal sources. Management believes that the company is well positioned financially, with ample cash flow to meet general operating needs. -7- 9 PART I - EXHIBIT A PRATT & LAMBERT UNITED, INC. AND SUBSIDIARY COMPANIES EARNINGS PER SHARE COMPUTATION
LINE THREE MONTHS ENDED NO. MARCH 31 1995 1994 ---- ---- 1. Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,501,000 $ 279,000 ========== ========= EARNINGS PER COMMON SHARE AND COMMON EQUIVALENT SHARES - ASSUMING NO DILUTION: Shares: Average number of common shares outstanding . . . . . . . . . . . . . . . . 10,615,129 5,585,767 Incremental shares - Dilutive stock options (A) . . . . . . . . . . . . . . 147,803 148,739 ---------- --------- 2. Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,762,932 5,734,506 ========== ========= 3. Decremental shares - Anti-dilutive stock options (A) . . . . . . . . . . . . 1,080 3,030 ========== ========= 4. Earnings per common share and common equivalent share - Assuming no dilution (1/2) . . . . . . . . . . . . . . . . . . . . . . . . . $.14 $.05 ========== ========= 5. Earnings per common share and common equivalent share - Assuming no dilution adjusted for anti-dilutive effect of common stock options 1/(2-3) . . . . . . . . . . . . . . . . . . . . . . . $.14 $.05 ========== ========= EARNINGS PER COMMON SHARE AND COMMON EQUIVALENT SHARES - ASSUMING FULL DILUTION: Shares: Average number of common shares outstanding . . . . . . . . . . . . . . . . 10,615,129 5,585,767 Incremental shares - Dilutive stock options (A) . . . . . . . . . . . . . . 206,842 149,391 ---------- --------- 6. Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,821,971 5,735,158 ========== ========= 7. Decremental shares - Anti-dilutive stock options (A) . . . . . . . . . . . . 0 2,973 ========== ========= 8. Earnings per common share and common equivalent share - Assuming full dilution adjusted for dilutive effect of stock options (1/6) . . . . . . . . . . . . . . . . . . . . . . . . . . . $.14 $.05 ========== ========= 9. Earnings per common share and common equivalent share - Assuming full dilution adjusted for anti-dilutive effect of stock options 1/(6-7) . . . . . . . . . . . . . . . . . . . . . . . . . . $.14 $.05 ========== ========= (A) Detail computations omitted because of insignificant number of shares and effect on total earnings per share.
-8- 10 INCORPORATION OF CERTAIN INFORMATION BY REFERENCE - - ------------------------------------------------- The following documents are hereby incorporated into this 10-Q in lieu of filing Form 8-K: (l) Pratt & Lambert's annual report on Form 10-K for the fiscal year ended December 31, 1994. (2) Pratt & Lambert's quarterly report on Form 10-Q ended March 31, 1994. (3) Pratt & Lambert's quarterly report on Form 10-Q ended June 30, 1994. (4) Pratt & Lambert United's quarterly report on Form 10-Q ended September 30, 1994. (5) United Coatings, Inc. audited financial statements on Form S-4 for the fiscal year ended December 31, 1993. (6) Pro Forma Condensed Consolidated Financial Information on Form S-4 for the three months ended March 31, 1994 (unaudited). -9- 11 PRO FORMA CONDENSED CONSOLIDATED -------------------------------- STATEMENTS OF OPERATIONS ------------------------ FOR THE THREE MONTH PERIOD ENDED MARCH 31, 1994 (Unaudited) The following unaudited pro forma condensed consolidated statements of operations gives effect to the acquisition of United Coatings by Pratt & Lambert assuming that the acquisition was consummated as of December 31, 1993 and assumes that the acquisition was accounted for as a purchase. The unaudited pro forma condensed consolidated statements of operations consolidates the historical statements of operations of Pratt & Lambert and of United Coatings for the three month period ended March 31, 1994. The pro forma data reflects the acquisition of United Coatings Common Stock in exchange for 5,000,000 shares of Pratt & Lambert Common Stock and approximately $17,000,000 of cash which was financed through a new revolving credit/term loan agreement. The following unaudited pro forma condensed consolidated statements of operations include pro forma adjustments to the unaudited consolidated statement of operations for the three month period ended March 31, 1994 contained in this filing, of a recurring nature which give effect to the consummation on or prior to the closing as if it had occurred as of December 31, 1993. The pro forma adjustments are described in the accompanying notes to the pro forma condensed consolidated statement of operations and should be read in conjunction with such pro forma condensed consolidated statement of operations. Such pro forma statements should also be read in conjunction with Pratt & Lambert United's consolidated financial statements and notes set forth in this filing. The following pro forma condensed consolidated statements of operations do not purport to be indicative of the actual results that would have occurred had the transaction been consummated December 31, 1993 or of the future results of operations which will be obtained as a result of the consummation of the transaction. -10- 12 Pro Forma Condensed Consolidated Statements of Operations For the Three Month Period Ended March 31, 1994-Unaudited (In thousands of dollars except per share amounts)
Pratt & United Pro Forma Lambert Coatings Adjustments Pro Forma ---------- ---------- ----------- ----------- Net Sales $57,370 $41,419 $98,789 Cost of Sales 39,917 32,518 ($500)(1) 71,935 ---------- ---------- ----------- ----------- Gross Profit 17,453 8,901 500 26,854 Selling, Administrative and General Expenses 16,784 5,468 (95)(2) 22,157 ---------- ---------- ----------- ----------- Income from Operations 669 3,433 595 4,697 Interest Expense-Net 364 63 490 (4) 917 Other Income (Expense) 153 (4,400) 4,400 (6) 153 Amortization 661 (3) 661 ---------- ---------- ----------- ----------- Income Before Taxes 458 (1,030) 3,844 3,272 Provision for Income Taxes 179 100 1,255 (5) 1,534 ---------- ---------- ----------- ----------- Net Income $279 ($1,130) $2,589 $1,738 ========== ========== =========== =========== Earnings per common share and common equivalent share $0.05 ($3.77) $0.16 Earnings per common share-assuming full dilution $0.05 ($3.77) $0.16 See notes to pro forma condensed consolidated statement of operations.
-11- 13 PRATT & LAMBERT UNITED, INC. AND SUBSIDIARIES NOTES TO THE PRO FORMA COMBINED CONDENSED ----------------------------------------- STATEMENT OF OPERATIONS ----------------------- The following adjustments have been made to reflect the pro forma recurring effect of the transaction directly attributable to the agreement as if the transaction were consummated on December 31, 1993: 1. To reflect negotiated volume discounts with vendors of its principal raw materials. 2. To reflect the reduction of United Coatings' legal, accounting and investment banking fees which would not have been incurred during 1994 had the transaction been consummated on December 31, 1993. 3. To reflect amortization expense for the following as required by purchase accounting:
Three Month -------------- Period Ended -------------- March 31, -------------- 1994 -------------- Amortization of goodwill over an estimated life of 40 years $605,000 Amortization of write up of property over estimated lives of 3 to 8 years 56,000 -------- $661,000 ========
4. To reflect increased interest expense because of additional long-term debt levels necessary to consummate the transaction. Interest expense is calculated using the interest rate (approximately 4.7%) for the three month period ended March 31, 1994. Each 1/8% change in the rate will effect net income by approximately $60,000 or approximately a half a cent per share. 5. To reflect the income taxes associated with the change of United Coatings' status from an S to a C corporation as well as the estimated income tax effects of the recurring transactions described above, as contemplated in the Merger Agreement. 6. To reflect the reversal of the United Coatings senior executive deferred compensation agreement expense which would not have been incurred during 1994 had the transaction been consummated on December 31, 1993. -12- 14 PART II. OTHER INFORMATION - - --------------------------- ITEM 5. OTHER INFORMATION Please refer to the incorporation of certain information by reference and the pro forma financial information in Part I on pages 10 through 12 relating to the acquisition of United Coatings, Inc. by Pratt & Lambert, Inc. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) EXHIBITS 27 - Financial Data Schedule (b) Reports on Form 8-K. There were no reports on Form 8-K filed for the three months ended March 31, 1995. -13- 15 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. PRATT & LAMBERT UNITED, INC. -------------------------------- (Registrant) Date May 12, 1995 "J. J. CASTIGLIA" ----------------------- -------------------------------- J. J. Castiglia President Date May 12, 1995 "J. R. BOLDT" ----------------------- -------------------------------- J. R. Boldt Vice President - Finance -14- EX-27 2 PRATT & LAMBERT UNITED, INC. EXHIBIT 27
5 1 3-MOS DEC-31-1995 JAN-01-1995 MAR-31-1995 1,969,000 0 80,595,000 3,440,000 71,081,000 160,000,000 106,316,000 59,534,000 313,452,000 94,420,000 0 134,000 0 0 139,891,000 313,452,000 109,894,000 109,894,000 81,612,000 81,612,000 1,314,000 0 1,683,000 2,671,000 1,170,000 1,501,000 0 0 0 1,501,000 .14 .14
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