-----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, k+VxQvnJXuFzhj2JYyB1pZE8NV5nLPQBl5nnuGAvhnUNYN9OGAEy5JbRmfGUl4Tw tBDZaryQ23XdERQx2HfVMA== 0000950123-94-000885.txt : 19940518 0000950123-94-000885.hdr.sgml : 19940518 ACCESSION NUMBER: 0000950123-94-000885 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940331 FILED AS OF DATE: 19940511 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CAMBREX CORP CENTRAL INDEX KEY: 0000820081 STANDARD INDUSTRIAL CLASSIFICATION: 2800 IRS NUMBER: 222476135 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-10638 FILM NUMBER: 94527074 BUSINESS ADDRESS: STREET 1: ONE MEADOWLANDS PLZ CITY: E RUTHERFORD STATE: NJ ZIP: 07073 BUSINESS PHONE: 2018043000 MAIL ADDRESS: STREET 1: ONE MEADOWLANDS PLAZA CITY: E. RUTHERFORD STATE: NJ ZIP: 07073 10-Q 1 CAMBREX CORPORATION FORM 10-Q 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the quarterly period ended March 31, 1994 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from ___________________ to __________________ Commission file number 1-10638 CAMBREX CORPORATION (Exact name of registrant as specified in its charter) DELAWARE 22-2476135 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) ONE MEADOWLANDS PLAZA, EAST RUTHERFORD, NEW JERSEY 07073 (Address of principal executive offices) (201) 804-3000 (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 twelve 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 CORPORATE ISSUERS As of May 1, 1994, there were 5,226,497 shares outstanding of the registrant's Common Stock, $.10 par value. Page 1 of 14 2 CAMBREX CORPORATION AND SUBSIDIARIES Form 10-Q For The Three Months Ended March 31, 1994 Table of Contents Page No. -------- Part I Financial information Condensed consolidated balance sheets as of March 31, 1994 and December 31, 1993 3 Condensed consolidated income statements for the three months ended March 31, 1994 and 1993 4 Condensed consolidated statements of cash flows for the three months ended March 31, 1994 and 1993 5 Notes to condensed consolidated financial statements 6 - 8 Management's Discussion and Analysis of Financial Condition and Results of Operations 9 - 11 Part II Other information Item 4. Matters Submitted to a Vote of Securities Holders 12 Item 6. Exhibits and Reports on Form 8-K 12 Signatures 13 Exhibit 11 - Computation of Earnings Per Share 14 3 Part 1 - FINANCIAL INFORMATION CAMBREX CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands)
March 31, December 31, 1994 1993 --------- ------------ ASSETS Current assets: Cash . . . . . . . . . . . . . . . . . . . . . . . . . . $ 637 $ 161 Trade and other receivables, less allowances for doubtful accounts of $291 and $355 at respective dates . . . . . . . . . . . . . . . . . . 32,457 28,015 Inventories . . . . . . . . . . . . . . . . . . . . . . . . . 35,924 33,730 Deferred tax asset . . . . . . . . . . . . . . . . . . . . . 1,615 1,315 Other . . . . . . . . . . . . . . . . . . . . . . . . . . 3,673 3,557 ------- ------- Total current assets . . . . . . . . . . . . . . . . . . 74,306 66,778 Property, plant and equipment, net . . . . . . . . . . . . . . . 96,662 89,784 Intangible assets, net . . . . . . . . . . . . . . . . . . . . . 8,689 7,621 Other noncurrent assets . . . . . . . . . . . . . . . . . . . . . 507 2,662 ------- ------- Total assets . . . . . . . . . . . . . . . . . . . . . . $180,164 $166,845 ======= ======= LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable and accrued liabilities . . . . . . . . . . $ 21,490 $ 20,872 Income taxes payable . . . . . . . . . . . . . . . . . . . . 3,699 3,409 Current portion of long-term debt . . . . . . . . . . . . . . 4,008 4,000 ------- ------- Total current liabilities . . . . . . . . . . . . . . . 29,197 28,281 Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . 45,770 36,261 Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . 6,287 5,986 Other noncurrent liabilities . . . . . . . . . . . . . . . . . . 8,748 8,748 ------- ------- Total liabilities . . . . . . . . . . . . . . . . . . . 90,002 79,276 ------- ------- Stockholders' equity: Common stock . . . . . . . . . . . . . . . . . . . . . . . . 602 601 Additional paid-in capital . . . . . . . . . . . . . . . . . 72,849 72,627 Retained earnings . . . . . . . . . . . . . . . . . . . . . . 27,717 25,859 Additional minimum pension liability . . . . . . . . . . . . . (692) (1,030) Treasury stock, at cost; 803,532 and 819,049 shares at respective dates . . . . . . . . . . . . . . . . (10,314) (10,488) ------- ------- Total stockholders' equity . . . . . . . . . . . . . . . 90,162 87,569 ------- ------- Total liabilities and stockholders' equity . . . . . . . $180,164 $166,845 ======= =======
See accompanying notes to condensed consolidated financial statements. - 3 - 4 CAMBREX CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED INCOME STATEMENTS (unaudited) (in thousands, except per-share amounts)
Three months ended March 31, ------------------------ 1994 1993 ---- ---- Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 51,047 $ 47,648 Operating expenses: Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . 39,644 35,729 Selling, general and administrative . . . . . . . . . . . . . . . . . . 6,276 6,990 Research and development . . . . . . . . . . . . . . . . . . . . . . . 1,213 1,359 ------- ------- Total operating expenses . . . . . . . . . . . . . . . . . . . . . . 47,133 44,078 ------- ------- Operating profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,914 3,570 Other (income) expenses: Interest expense - net . . . . . . . . . . . . . . . . . . . . . . . . 363 677 Other - net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172 (69) ------- ------- Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . 3,379 2,962 Provision for income taxes . . . . . . . . . . . . . . . . . . . . . . . . 1,251 1,168 ------- ------- Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,128 $ 1,794 ======= ======= Weighted average shares outstanding: Primary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,638 5,169 Fully diluted . . . . . . . . . . . . . . . . . . . . . . . . . . 5,638 5,486 Net income per share: Primary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.38 $ 0.35 ======= ======= Fully diluted . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.38 $ 0.34 ======= =======
See accompanying notes to condensed consolidated financial statements. - 4 - 5 CAMBREX CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in thousands)
Three months ended March 31, ------------------------- 1994 1993 ------- ------- Cash flows from operations . . . . . . . . . . . . . . . . . . . . . . . . $ 5,261 $ 4,834 Changes in assets and liabilities: Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,203) (417) Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (780) (2,925) Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . (14) (157) Accounts payable and accrued liabilities . . . . . . . . . . . . . . . (1,649) (1,002) Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . 188 829 Other noncurrent assets and liabilities . . . . . . . . . . . . . . . . 2,155 1,043 ------- ------- Net cash provided from operations . . . . . . . . . . . . . . . . 1,958 2,205 ------- ------- Cash flows from investing activities: Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . ( 3,861) (2,912) Acquisition of businesses . . . . . . . . . . . . . . . . . . . . . . . ( 7,255) (5,800) ------- ------- Net cash (used in) investing activities . . . . . . . . . . . . . (11,116) (8,712) ------- ------ Cash flows from financing activities: Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (260) ( 236) Long-term debt activity (including current portion): . . . . . . . . . Borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,797 14,000 Repayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . (13,300) (7,738) Proceeds from the issuance of common stock . . . . . . . . . . . . . . 45 184 Proceeds from the sale of treasury stock . . . . . . . . . . . . . . . 352 336 ------- ------ Net cash provided from financing activities . . . . . . . . . . . 9,634 6,546 ------- ------- Net increase in cash . . . . . . . . . . . . . . . . . . . . . . . . . . . 476 39 Cash at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . 161 564 ------- ------- Cash at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 637 $ 603 ======= ======= Supplemental disclosure: Interest paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 502 $ 609 Income taxes paid . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,033 $ 1,726
See accompanying notes to condensed consolidated financial statements. - 5 - 6 CAMBREX CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands) (1) Basis of Presentation Unless otherwise indicated by the context, "Cambrex" or the "Company" means Cambrex Corporation and subsidiaries. The accompanying unaudited Condensed Consolidated Financial Statements have been prepared from the records of the Company. In the opinion of management, the financial statements include all adjustments, consisting of only normal recurring accruals, necessary for a fair presentation of financial position and results of operations in conformity with generally accepted accounting principles. These interim financial statements should be read in conjunction with the financial statements for the year ended December 31, 1993. The results of operations for the three months ended March 31, 1994 are not necessarily indicative of the results to be expected for the full year. (2) Inventories Inventories are stated at the lower of cost, determined on a first-in, first-out basis, or market and include material, labor, and overhead. Inventories at March 31, 1994 and December 31, 1993 consist of the following:
March 31, December 31, 1994 1993 --------- ------------ Finished goods . . . . . . . . . . . . . $17,822 $17,988 Raw materials . . . . . . . . . . . . . 16,382 13,878 Fuel oil and supplies . . . . . . . . . 1,720 1,864 ------ ------ $35,924 $33,730 ====== ======
(3) Earnings Per Common Share The calculation of primary earnings per common share is based on the weighted average number of common shares and common share equivalents outstanding during the applicable period. For 1993, fully diluted earnings per share assumes conversion of the outstanding convertible subordinated notes that were converted in September 1993, and the elimination of related interest expense net of tax. - 6 - 7 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) 4) Acquisition On January 31, 1994, the Company completed the acquisition of the assets of Hexcel Corporation's fine chemicals business located in Middlesbrough, England, for approximately $7,300 and the assumption of certain current liabilities in the amount of $2,700. The facility is now known as Seal Sands Chemicals Ltd. 5) Long-term Debt Long-term debt at March 31, 1994 and December 31, 1993 consists of the following:
March 31, December 31, 1994 1993 ---- ---- Bank credit facilities (a) . . . . . . . . . . . . . . . $ 45,608 $ 36,111 Capital lease . . . . . . . . . . . . . . . . . . . . . 20 - Industrial development revenue bond . . . . . . . . . . 4,150 4,150 ------ ------ Subtotal . . . . . . . . . . . . . . . . . . . 49,778 40,261 Less: current portion . . . . . . . . . . . . . . . . . 4,008 4,000 ------ ------ Total . . . . . . . . . . . . . . . . . . . . $ 45,770 $ 36,261 ====== ======
(a) On January 31, 1994, the Company amended the Revolving Credit and Term Loan Agreement (Credit Agreement) with NBD Bank, N.A., National Westminster NJ, and United Jersey Bank. The new Credit Agreement provides for additional revolving credit facility flexibility as follows: It is designed to allow for automatic extensions of termination date. The current termination date is January 31, 1997. It permits the Company to specify a portion of the borrowing to be designated in various acceptable currencies. Under the Credit Agreement, the interest rate options available approximate London Interbank Offering Rates (LIBOR) for the appropriate currency plus no more than 1 1/2%, or the U.S. Prime Rate. On March 31, 1994, the rate was LIBOR+1%. A commitment fee of between 250/1000 of 1% and 125/1000 of 1% is paid on the unused portion of the revolving credit facilities. Additionally, the restrictive covenant for net worth was updated. All other covenants remain unchanged. The Company met all bank covenants for the first quarter of 1994. 6) Postemployment Benefits Statement of Financial Accounting Standard No. 112 "Employers' Accounting for Postemployment Benefits" (SFAS 112) requires the recognition on an accrual basis of all types of postemployment benefits provided to former or inactive employees subsequent to employment but before retirement. The Company currently provides limited benefits in this regard. The Company will adopt SFAS 112 effective January 1, 1994, and is in the process of performing calculations to determine the impact of SFAS 112 implementation upon the Company's operating results. - 7 - 8 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (7) Contingencies There have been no significant changes in the existing contingencies related to environmental issues. Refer to Form 10-K for the fiscal year ended December 31, 1993. - 8 - 9 CAMBREX CORPORATION AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS Net revenues for the first quarter 1994 increased 7% to $51,047,000 from $47,648,000 reported in the first quarter 1993. The $3,399,000 of increased revenue included sales from the Company's Seal Sands Chemicals Ltd. facility located in England, acquired on January 31, 1994, and sales from the March 12, 1993 acquisition of Viscosity Oil's fiber optic gel business. The first quarter saw increases in specialty and fine chemicals, performance chemicals and agricultural intermediates and additives.
Three months ended March 31, ------------------- (in thousands) 1994 1993 ---- ---- Revenues: Health & pharmaceuticals . . . . . . . . . . . . . . . . . . $ 14,238 $ 14,815 Agricultural intermediates & additives . . . . . . . . . . . 13,914 12,558 Specialty & fine chemicals . . . . . . . . . . . . . . . . . 13,280 11,354 Performance chemicals . . . . . . . . . . . . . . . . . . . . 7,341 5,310 Coatings . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,014 4,867 ------ ------ Total gross revenues . . . . . . . . . . . . . . . . . . . $ 52,787 $ 48,904 ====== ====== Total net revenues . . . . . . . . . . . . . . . . . . . . $ 51,047 $ 47,648 ====== ======
Health and Pharmaceuticals' revenues decreased $577,000 (4%) from 1993. This decrease was primarily due to reduced shipments of Vitamin B3 and its chemical precursors to customers in Europe. This sales decrease was caused by a combination of price competition and product quality issues. Partially offsetting this decrease were sales of a product used as an intermediate for cough syrups and a product used as a reducing agent in pharmaceutical production; sales of these products increased 10% due to shipments to new customers in India and in Europe. Also, a return to a normal sales level of our generic drug for ulcerative colitis resulted in a 40% increase in sales of this product. Agricultural Intermediates and Additives' revenues increased by $1,356,000 (11%) over 1993. Key increases occurred in shipments of a niacinamide intermediate to India and the Asia-Pacific area and in the shipments of feed additives for the poultry industry. New capacity for feed additives was completed in the first quarter 1994. Specialty and Fine Chemicals' revenues increased $1,926,000 (17%) over 1993. The acquisition of Seal Sands Chemicals Ltd. on January 31, 1994 accounted for a total of $2,440,000 in sales of specialty chemicals of which $2,200,000 are new to the Cambrex list of products. Reduced sales in this category include a product exported to a Japanese company for use as a photographic chemical intermediate, a product used in fashioning stone-washed jeans, and products used as catalysts in chemical manufacturing. - 9 - 10 Performance Chemicals' revenues increased $2,031,000 (38%) from prior year. This increase was due to the acquisition of a complimentary fiber optic gel business in March 1993. The increased sales in the first quarter from this acquisition was $1,750,000. All the other telecommunication, encapsulants and adhesive products in this category either maintained or had increased sales levels. Coatings' revenues decreased $853,000 (18%) from 1993. This decline was primarily due to a tolling agreement for biocides products that ended in May 1993. Gross profit in the first quarter 1994 of $11,403,000 (22.3%) compared to $11,919,000 (25%) in the first quarter 1993. The decline in gross profit was due to manufacturing variances caused by lower production volumes, overtime and higher utility costs related to weather problems experienced in most of our plants during January and February. These problems have not been encountered since February and all of our plants are running at normal production levels. Selling, general and administrative expenses as a percentage of net revenues was 14.7% in the first quarter 1994 versus 17.5% in 1993. The first quarter 1994 expense of $7,489,000 was $860,000 below 1993. The major item was recovery of $650,000 in legal costs as part of a settlement with insurance companies relating to coverage of environmental remediation costs. Reduced spending in selling and marketing, research and development and administration, including staff reductions, added to the reduction. Interest expense for the first quarter decreased $314,000 from 1993. This decrease is due to recording the capitalization of interest costs of $175,000 in accordance with Statement of Financial Accounting Standard No. 34, and the elimination of higher interest debt including a capital lease and convertible 9% notes. Other expenses for the first quarter 1994 was $172,000 compared with $69,000 in other income for the first quarter 1993. The key change was a settlement for $250,000 included in 1993, related to the termination of a contract by a customer. Net income for the first quarter 1994 was $2,128,000 compared to $1,794,000 for the first quarter 1993. The earnings per share (fully diluted) in the first quarter 1994 were 38 cents, compared with 34 cents in 1993 (12% increase). Statement of Financial Accounting Standard No. 112 "Employers' Accounting for Postemployment Benefits" (SFAS 112) requires the recognition on an accrual basis of all types of postemployment benefits provided to former or inactive employees subsequent to employment but before retirement. The Company will adopt SFAS 112 effective January 1, 1994, and is in the process of performing calculations to determine the impact of SFAS 112 implementation upon the Company's operating results. - 10 - 11 LIQUIDITY AND CAPITAL RESOURCES The Company's liquidity and capital resources, in the opinion of management, adequately enable the Company to meet its needs for cash. Cash flow from operations decreased by less than $250,000, when compared to the first quarter of 1993, the most significant fluctuation reflecting increases in accounts receivable. The highest expenditures in the quarter were from investing activities. Capital expenditures of $3,861,000 for the first quarter 1994 were $949,000 higher than the prior year. The key capital expenditures were for a new manufacturing facility to meet a customer's requirements. Additional funds were used to acquire the assets of Hexcel Corporation's fine chemicals business located in Middlesbrough, England, now known as Seal Sands Chemicals Ltd. The assets were purchased for approximately $7,300,000 and the assumption of certain current liabilities in the amount of $2,700,000. On January 31, 1994, the Company amended the Revolving Credit and Term Loan Agreement (Credit Agreement) with NBD Bank, N.A., National Westminster NJ, and United Jersey Bank. The new Credit Agreement provides for additional revolving credit facility flexibility as follows: It is designed to allow for automatic extensions of termination date. The current termination date is January 31, 1997. It permits the Company to specify a portion of the borrowing to be designated in various acceptable currencies. Under the Credit Agreement, the interest rate options available approximate London Interbank Offering Rates (LIBOR) for the appropriate currency plus no more than 1 1/2%, or the U.S. Prime Rate. A commitment fee of between 250/1000 of 1% and 125/1000 of 1% is paid on the unused portion of the revolving credit facilities. Additionally, the restrictive covenant for net worth was updated. All other covenants remain unchanged. The quarterly cash dividend declared on January 27, 1994 was paid on February 25, 1994. On April 28, 1994, the Board of Directors declared a quarterly cash dividend on its common stock of 5 cents per share for all shareholders of record as of May 13, 1994. The dividend is payable on May 27, 1994. - 11 - 12 PART II - OTHER INFORMATION CAMBREX CORPORATION AND SUBSIDIARIES Item 4. Matters Submitted to a Vote of Securities Holders. At the annual meeting of stockholders held on April 28, 1994, Cyril C. Baldwin, Jr., George J. W. Goodman, Kathryn Rudie Harrigan, and Robert LeBuhn were elected to hold office as directors of the Company until the 1997 annual meeting of stockholders. The stockholders ratified the approval of the 1993 Senior Executive Stock Option Plan and awards thereunder. Of the 5,208,566 shares represented at the meeting, 3,460,543 votes were cast in favor of the ratification, 616,071 votes were cast against, and 1,629 abstained. The stockholders ratified the approval of the 1994 Stock Option Plan which includes a program of awards for non-employee directors. Of the 5,208,566 shares represented at the meeting, 3,444,043 votes were cast in favor of the ratification, 630,771 votes were cast against, and 3,529 abstained. In addition, the stockholders ratified the appointment of Coopers & Lybrand as the Company's independent accountants for 1994. Of the 5,208,566 shares represented at the meeting, 4,235,333 votes were cast in favor of the ratification of the appointment of Coopers & Lybrand as auditors, 604 votes were cast against, and 900 abstained. Item 6. Exhibits and Reports on Form 8-K a) The exhibit filed as part of this report is listed below. Exhibit No. Description ----------- ------------ 11 Statement of computation of per share earnings. - 12 - 13 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. CAMBREX CORPORATION By /s/ Peter Tracey ----------------------------------------- Peter Tracey Vice President (On behalf of the Registrant and as the Registrant's Principal Financial Officer) Date: May 11, 1994 - 13 - 14 EXHIBIT INDEX -------------- Exhibit Page No. Description No. - - -------- --------------------------------- ------ 11 Statement of computation of per share earnings. EX-11 2 STATEMENT OF PER SHARE EARNINGS 1 EXHIBIT 11 CAMBREX CORPORATION AND SUBSIDIARIES COMPUTATION OF EARNINGS PER SHARE (in thousands)
Three months ended March 31, --------------------- 1994 1993 ---- ---- Income (loss) applicable to common shares: Primary earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,128 $ 1,794 Add: Interest reduction from assumed conversion of convertible subordinated notes (net of taxes): Notes issued June 11, 1985 . . . . . . . . . . . . . . . . . . . . - 34 Notes issued October 3, 1985 . . . . . . . . . . . . . . . . . . . - 20 ------ ------ Fully diluted earnings . . . . . . . . . . . . . . . . . . . . . . . . $ 2,128 $ 1,848 ====== ====== Weighted average number of common shares and common share equivalents outstanding during the period: Common Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,208 4,833 Stock Options . . . . . . . . . . . . . . . . . . . . . . . . . . 430 336 ----- ----- Shares outstanding - primary . . . . . . . . . . . . . . . . . . . . . 5,638 5,169 Notes issued June 11, 1985 . . . . . . . . . . . . . . . . . . . . - 189 Notes issued October 3, 1985 . . . . . . . . . . . . . . . . . . . - 113 Additional stock options . . . . . . . . . . . . . . . . . . . . . - 15 ----- ----- Shares outstanding - fully diluted . . . . . . . . . . . . . . . . . . 5,638 5,486 ===== =====
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