-----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, VBfPhWDmi9+eRE86bNBvYJJu6iAeXrWoAkPnlhvo3iVDSzAl+yscYlCM7RO717rg ieyd9qxSNWPA7MiXBj6pNw== 0000840467-00-000008.txt : 20000515 0000840467-00-000008.hdr.sgml : 20000515 ACCESSION NUMBER: 0000840467-00-000008 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20000331 FILED AS OF DATE: 20000512 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BECKMAN COULTER INC CENTRAL INDEX KEY: 0000840467 STANDARD INDUSTRIAL CLASSIFICATION: LABORATORY ANALYTICAL INSTRUMENTS [3826] IRS NUMBER: 951040600 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-10109 FILM NUMBER: 627017 BUSINESS ADDRESS: STREET 1: 4300 N HARBOR BLVD STREET 2: PO BOX 3100 CITY: FULLERTON STATE: CA ZIP: 92834-3100 BUSINESS PHONE: 7148714848 MAIL ADDRESS: STREET 1: 4300 N HARBOR BLVD STREET 2: PO BOX 3100 CITY: FULLERTON STATE: CA ZIP: 92834-3100 FORMER COMPANY: FORMER CONFORMED NAME: BECKMAN INSTRUMENTS INC DATE OF NAME CHANGE: 19920703 10-Q 1 10-Q REPORT TO SEC FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 (Mark One) (X)Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2000 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 001-10109 BECKMAN COULTER, INC. (Exact name of registrant as specified in its charter) Delaware 95-104-0600 (State of Incorporation) (I.R.S. Employer Identification No.) 4300 N. Harbor Boulevard, Fullerton, California 92834-3100 (Address of principal executive offices) (Zip Code) (714) 871-4848 (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 ( ). APPLICABLE ONLY TO CORPORATE ISSUERS: Outstanding shares of common stock, $0.10 par value, as of May 1, 2000: 29,358,170 shares. PART I FINANCIAL INFORMATION Item 1. Financial Statements Condensed Consolidated Statements of Operations for the three month periods ended March 31, 2000 and 1999 Condensed Consolidated Balance Sheets as of March 31, 2000 and December 31, 1999 Condensed Consolidated Statements of Cash Flows for the three month periods ended March 31, 2000 and 1999 Notes to Condensed Consolidated Financial Statements Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Item 3. Quantitative and Qualitative Disclosures About Market Risk PART II OTHER INFORMATION Item 1. Legal Proceedings Item 2. Changes In Securities Item 3. Defaults Upon Senior Securities Item 4. Submission of Matters to a Vote of Security-Holders Item 5. Other Information Item 6. Exhibits and Reports on Form 8-K PART I BECKMAN COULTER, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in Millions, Except Amounts Per Share and Share Data) Unaudited
Three Months Ended March 31, 2000 1999 ---- ---- Sales $434.4 $405.1 Cost of sales 231.5 211.2 ------ ------ Gross profit 202.9 193.9 Operating costs and expenses: Selling, general and administrative 115.2 111.8 Research and development 40.9 38.8 ------ ------ Total operating costs and expenses 156.1 150.6 ------ ------ Operating income 46.8 43.3 ------ ------ Nonoperating (income) and expenses: Interest income (1.4) (2.0) Interest expense 18.6 18.2 Other, net (0.8) 2.0 ------ ------ Total nonoperating expenses 16.4 18.2 ------ ------ Earnings before income taxes 30.4 25.1 Income taxes 9.4 8.0 ------ ------ Net earnings $ 21.0 $ 17.1 ====== ====== Basic earnings per share $ 0.72 $ 0.60 Weighted average number of shares outstanding (in thousands) 29,096 28,460 Diluted earnings per share $ 0.70 $ 0.58 Weighted average number of shares and dilutive shares outstanding (in thousands) 30,181 29,558 Dividends declared per share $ 0.16 $ 0.16
See accompanying notes to condensed consolidated financial statements. BECKMAN COULTER, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in Millions, Except Amounts per Share)
March December 31, 31, 2000 1999 ---- ---- Unaudited Assets Current assets: Cash and equivalents $ 9.2 $ 34.4 Trade and other receivables 516.5 566.4 Inventories 346.5 313.1 Other current assets 55.0 52.5 -------- -------- Total current assets 927.2 966.4 Property, plant and equipment, net 295.7 305.9 Goodwill, less accumulated amortization of $29.0 and $26.3 at March 31, 2000 and December 31, 1999, respectively 342.0 344.7 Other intangibles, less accumulated amortization of $51.6 and $46.8 at March 31, 2000 and December 31, 1999 respectively 395.1 399.9 Other assets 69.2 93.9 -------- -------- Total assets $2,029.2 $2,110.8 ======== ======== Liabilities and Stockholders' Equity Current liabilities: Notes payable and current maturities of long-term debt $ 47.8 $ 50.0 Accounts payable, accrued expenses and other liabilities 402.4 474.1 Income taxes 54.9 51.8 -------- -------- Total current liabilities 505.1 575.9 Long-term debt, less current maturities 958.1 980.7 Other liabilities 324.4 326.3 -------- -------- Total liabilities 1,787.6 1,882.9 -------- -------- Stockholders' equity: Preferred stock, $0.10 par value; authorized 10.0 shares; none issued - - Common stock, $0.10 par value; authorized 75.0 shares; shares issued 29.3 and 29.1 at March 31, 2000 and December 31, 1999, respectively; shares outstanding 29.3 and 29.0 at March 31, 2000 and December 31, 1999, respectively 2.9 2.9 Additional paid-in capital 135.0 134.5 Retained earnings 139.3 123.0 Accumulated other comprehensive loss: Cumulative foreign currency translation adjustment (35.6) (24.3) Treasury stock, at cost - (8.2) -------- -------- Total stockholders' equity 241.6 227.9 -------- -------- Total liabilities and stockholders' equity $2,029.2 $2,110.8 ======== ========
See accompanying notes to condensed consolidated financial statements. BECKMAN COULTER, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in Millions) Unaudited
Three Months Ended March 31, 2000 1999 ---- ---- Cash Flows from Operating Activities Net earnings $ 21.0 $ 17.1 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 33.0 37.6 Net deferred income taxes 0.3 (0.6) Proceeds from sales of sales-type lease receivables 29.9 18.7 Changes in assets and liabilities: Trade and other receivables 28.1 (33.4) Inventories (37.6) (11.9) Accounts payable, accrued expenses and other liabilities (68.2) (33.4) Income taxes payable 3.4 4.4 Other 6.2 16.5 ------ ------ Net cash provided by operating activities 16.1 15.0 ------ ------ Cash Flows from Investing Activities Additions to property, plant and equipment (37.1) (35.5) Proceeds from sale of certain clinical chemistry assets 12.0 - Proceeds from sale of property, plant and equipment 0.9 0.6 ------ ------ Net cash used by investing activities (24.2) (34.9) Cash Flows from Financing Activities Dividends to stockholders (4.7) (4.6) Proceeds from issuance of stock 8.6 3.1 Notes payable reductions (1.2) (13.2) Long-term debt borrowings - 35.0 Long-term debt reductions (18.5) (6.2) ------ ------ Net cash (used) provided by financing activities (15.8) 14.1 ------ ------ Effect of exchange rates on cash and equivalents (1.3) 0.2 ------ ------ Decrease in cash and equivalents (25.2) (5.6) Cash and equivalents - beginning of period 34.4 24.7 ------ ------ Cash and equivalents - end of period $ 9.2 $ 19.1 ====== ====== Supplemental Disclosures of Cash Flow Information Cash paid during the period for: Interest $ 17.3 $ 15.4 Income taxes $ 6.3 $ 3.6 Non-cash Investing and Financing Activities: Purchase of equipment under capital lease $ 0.4 $ 2.1 Receivable from sale of certain clinical chemistry assets $ 4.6 $ -
See accompanying notes to condensed consolidated financial statements. BECKMAN COULTER, INC. Notes To Condensed Consolidated Financial Statements March 31, 2000 Unaudited 1. Report by Management - ------------------------- We prepared the accompanying Condensed Consolidated Financial Statements following the requirements of the Securities and Exchange Commission ("SEC") for interim reporting. As permitted under those rules, certain footnotes or other financial information normally required by generally accepted accounting principles ("GAAP") have been condensed or omitted. In addition, we have reclassified certain prior period data to conform to the current presentation. The financial statements include all normal and recurring adjustments that we consider necessary for the fair presentation of our financial position and operating results. To obtain a more detailed understanding of our results, these Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and notes in our annual report on Form 10-K for the year ended December 31, 1999. Revenues, expenses, assets, and liabilities can vary between the quarters of the year. Therefore, the results and trends in these interim financial statements may not be the same as those for the full year. 2. Comprehensive Income - ------------------------- Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive Income", establishes standards for the reporting and display of comprehensive income. Components of comprehensive income include net earnings and foreign currency translation adjustments. The components of comprehensive income are as follows (in millions):
Three Months Ended March 31, 2000 1999 ---- ---- Net earnings $ 21.0 $ 17.1 Foreign currency translation adjustment (11.3) (11.3) ------ ------ Comprehensive income $ 9.7 $ 5.8 ====== ======
3. Earnings Per Share - ----------------------- Statement of Financial Accounting Standards No. 128, "Earnings Per Share", establishes standards for computing and presenting earnings per share (EPS), where: - "basic earnings per share" includes only actual weighted average shares outstanding; and - "diluted earnings per share" includes the effect of any items that are dilutive, such as stock options. The following table summarizes the computation of EPS (in millions, except amounts per share):
Three Months Ended March 31, 2000 1999 ---- ---- Per Per Net Share Net Share Earnings Shares Amount Earnings Shares Amount -------- ------ ------ -------- ------ ------ Basic EPS: Net earnings $21.0 29.1 $0.72 $17.1 28.5 $0.60 Effect of dilutive stock options - 1.1 (0.02) - 1.1 (0.02) ----- ---- ----- ----- ---- ----- Diluted EPS: Net earnings $21.0 30.2 $0.70 $17.1 29.6 $0.58 ===== ==== ===== ===== ==== =====
4. Sale of Receivables - ------------------------ During the three months ended March 31, 2000, we sold certain financial assets (primarily consisting of sales-type lease receivables) as part of our plan to reduce debt. The net book value of financial assets sold was $29.8 million for which we received $29.9 million in cash proceeds. During the three months ended March 31, 1999, we sold similar assets with a net book value of $18.0 million for cash proceeds of $18.7 million. Under the provisions of Statement of Financial Accounting Standards No. 125, "Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities", the transactions were accounted for as sales and as a result the related receivables have been excluded from the accompanying Condensed Consolidated Balance Sheets. We have established a reserve for potential losses, since the sales are subject to certain recourse provisions. 5. Inventories - ---------------- Inventories consisted of the following (in millions):
March 31, 2000 December 31, 1999 -------------- ----------------- Finished products $235.3 $210.9 Raw materials, parts and assemblies 92.6 87.2 Work in process 18.6 15.0 ------ ------ $346.5 $313.1 ====== ======
6. Provision for Restructuring Operations - ----------------------------------------- We recorded a restructuring charge of $4.3 million, $2.6 million after taxes, in the fourth quarter of 1999. The following table details the activity within the accrual for the three months ended March 31, 2000 (in millions):
Facility Consolidation Personnel and and Asset-related Other Write-offs Total ----- ---------- ----- Balance at December 31, 1999: Consolidation of sales, general administrative and technical functions $ 3.0 $ 0.6 $ 3.6 2000 year-to-date activity: Consolidation of sales, general administrative and technical functions (0.9) (0.1) (1.0) ----- ----- ----- Balance at March 31, 2000: Consolidation of sales, general administrative and technical functions $ 2.1 $ 0.5 $ 2.6 ===== ===== =====
We recorded a restructuring charge of $19.1 million, $11.2 million after taxes, in the fourth quarter of 1998. The following table details the activity within the accrual for the three months ended March 31, 2000 (in millions):
Facility Consolidation Personnel and and Asset-related Other Write-offs Total ----- ---------- ----- Balance at December 31, 1999: Consolidation of sales, general administrative and technical functions $ 8.3 $ - $ 8.3 Changes in manufacturing operations 1.1 4.5 5.6 ----- ----- ----- Remaining provision included in accrued expenses at December 31, 1999 $ 9.4 $ 4.5 $13.9 ===== ===== ===== 2000 year-to-date activity: Consolidation of sales, general administrative and technical functions $(0.3) $ - $(0.3) Changes in manufacturing operations (0.3) (3.7) (4.0) ----- ----- ----- Total 2000 year-to-date activity $(0.6) $(3.7) $(4.3) ===== ===== ===== Balance at March 31, 2000: Consolidation of sales, general administrative and technical functions $ 8.0 $ - $ 8.0 Changes in manufacturing operations 0.8 0.8 1.6 ----- ----- ----- Balance at March 31, 2000 $ 8.8 $ 0.8 $ 9.6 ===== ===== =====
In the fourth quarter of 1997, we recorded a restructuring charge of $59.4 million, $36.4 million after taxes. The following table details the activity within the accrual for the three months ended March 31, 2000 (in millions):
Facility Consolidation Personnel and and Asset-related Other Write-offs Total ----- ---------- ----- Balance at December 31, 1999: Consolidation of sales, general administrative and technical functions $ 1.7 $ 1.7 $ 3.4 Changes in manufacturing operations 1.6 - 1.6 ----- ----- ----- Remaining provision included in accrued expenses at December 31, 1999 $ 3.3 $ 1.7 $ 5.0 ===== ===== ===== 2000 year-to-date activity: Consolidation of sales, general administrative and technical functions $(1.2) $(0.6) $(1.8) Changes in manufacturing operations (1.2) - (1.2) ----- ----- ----- Total 2000 year-to-date activity $(2.4) $(0.6) $(3.0) ===== ===== ===== Balance at March 31, 2000: Consolidation of sales, general administrative and technical functions $ 0.5 $ 1.1 $ 1.6 Changes in manufacturing operations 0.4 - 0.4 ----- ----- ----- Balance at March 31, 2000 $ 0.9 $ 1.1 $ 2.0 ===== ===== =====
7. Debt Financing and Guarantor Subsidiaries - --------------------------------------------- In March 1998, we issued $160.0 million of 7.10% Senior Notes due 2003 and $240.0 million of 7.45% Senior Notes due 2008 (the "Offering"). We used the net proceeds of $394.3 million to reduce borrowings and commitments under our bank facilities and for operating purposes. In connection with the Offering, certain of our subsidiaries (the "Guarantor Subsidiaries") jointly, fully, severally, and unconditionally guaranteed such notes. We present below the supplemental condensed financial information (in millions) of the Parent, Guarantor Subsidiaries and Non-Guarantor Subsidiaries. Please note that in this footnote, we used the equity method of accounting for our investments in subsidiaries and the Guarantor Subsidiaries' investments in Non-Guarantor Subsidiaries. This financial information should be read in conjunction with the Condensed Consolidated Financial Statements.
Non- Guarantor Guarantor Subsi- Subsi- Elimina- Consoli- Parent diaries diaries tions dated ------ ------- ------- ----- ----- Condensed Consolidated Balance Sheet March 31, 2000 Assets: Cash and equivalents $(40.2) $ (4.2) $ 53.6 $ - $ 9.2 Trade and other receivables 231.8 6.1 278.6 - 516.5 Inventories 232.1 38.3 125.2 (49.1) 346.5 Other current assets 510.6 811.3 73.5 (1,340.4) 55.0 ------- ------ ------ --------- ------- Total current assets 934.3 851.5 530.9 (1,389.5) 927.2 Property, plant and equipment, net 159.6 82.1 124.5 (70.5) 295.7 Goodwill, net 10.1 323.1 8.8 - 342.0 Other intangibles, net 29.6 362.2 3.3 - 395.1 Other assets 1,334.9 30.2 235.4 (1,531.3) 69.2 -------- -------- ------ --------- -------- Total assets $2,468.5 $1,649.1 $902.9 $(2,991.3) $2,029.2 ======== ======== ====== ========= ======== Liabilities: Notes payable and current maturities of long-term debt $ 9.9 $ 0.7 $ 37.2 $ - $ 47.8 Accounts payable, accrued expenses 279.4 34.2 88.8 - 402.4 Other current liabilities 556.9 295.5 98.9 (896.4) 54.9 -------- -------- ------ --------- -------- Total current liabilities 846.2 330.4 224.9 (896.4) 505.1 Long-term debt, less current maturities 895.8 0.1 62.2 - 958.1 Other liabilities 485.0 642.8 180.6 (984.0) 324.4 -------- -------- ------ --------- -------- Total liabilities 2,227.0 973.3 467.7 (1,880.4) 1,787.6 Total stockholders' equity 241.5 675.8 435.2 (1,110.9) 241.6 -------- -------- ------ --------- -------- Total liabilities and stockholders' equity $2,468.5 $1,649.1 $902.9 $(2,991.3) $2,029.2 ======== ======== ====== ========= ========
Non- Guarantor Guarantor Subsi- Subsi- Elimina- Consoli- Parent diaries diaries tions dated ------ ------- ------- ----- ------ Condensed Consolidated Balance Sheet December 31, 1999 Assets: Cash and equivalents $ (5.3) $ 3.7 $ 36.0 $ - $ 34.4 Trade and other receivables 255.8 6.0 304.6 - 566.4 Inventories 201.0 32.1 122.7 (42.7) 313.1 Other current assets 455.4 725.7 95.4 (1,224.0) 52.5 ------- -------- ------ --------- -------- Total current assets 906.9 767.5 558.7 (1,266.7) 966.4 Property, plant and equipment, net 152.4 84.6 142.3 (73.4) 305.9 Goodwill, net 10.3 325.6 8.8 - 344.7 Other intangibles, net 30.2 366.2 3.5 - 399.9 Other assets 1,457.9 35.8 279.2 (1,679.0) 93.9 -------- -------- ------ --------- -------- Total assets $2,557.7 $1,579.7 $992.5 $(3,019.1) $2,110.8 ======== ======== ====== ========= ======== Liabilities: Notes payable and current maturities of long-term debt $ 4.4 $ 1.1 $ 44.5 $ - $ 50.0 Accounts payable, accrued expenses 368.3 32.7 95.6 (22.5) 474.1 Other current liabilities 530.9 213.1 131.0 (823.2) 51.8 -------- -------- ------ -------- -------- Total current liabilities 903.6 246.9 271.1 (845.7) 575.9 Long-term debt, less current maturities 913.0 0.1 67.6 - 980.7 Other liabilities 513.2 647.9 213.0 (1,047.8) 326.3 -------- -------- ------ -------- -------- Total liabilities 2,329.8 894.9 551.7 (1,893.5) 1,882.9 Total stockholders' equity 227.9 684.8 440.8 (1,125.6) 227.9 -------- -------- ------ -------- -------- Total liabilities and stockholders' equity $2,557.7 $1,579.7 $992.5 $(3,019.1) $2,110.8 ======== ======== ====== ========= ========
[CAPTION] Non- Guarantor Guarantor Subsi- Subsi- Elimina- Consoli- Parent diaries diaries tions dated ------ ------- ------- ----- ----- Condensed Consolidated Statement of Operations Quarter ended March 31, 2000 Sales $330.3 $ 75.7 $222.7 $(194.3) $434.4 Operating costs and expenses: Cost of sales 202.6 55.9 169.5 (196.5) 231.5 Selling, general and administrative 61.3 12.6 41.3 - 115.2 Research and development 24.2 15.4 1.3 - 40.9 ------ ------ ------ ------- ------ Operating income (loss) 42.2 (8.2) 10.6 2.2 46.8 Nonoperating (income) expense 13.8 3.4 (0.7) (0.1) 16.4 ------ ------ ------ ------- ------ Earnings (loss) before income taxes 28.4 (11.6) 11.3 2.3 30.4 Income taxes (benefit) 8.8 (3.1) 3.0 0.7 9.4 ------ ------ ------ ------- ------ Net earnings (loss) $ 19.6 $ (8.5) $ 8.3 $ 1.6 $ 21.0 ====== ======= ====== ====== ======
Non- Guarantor Guarantor Subsi- Subsi- Elimina- Consoli- Parent diaries diaries tions dated ------ ------- ------- ----- ----- Condensed Consolidated Statement of Operations Quarter ended March 31, 1999 Sales $282.0 $88.2 $216.5 $(181.6) $405.1 Operating costs and expenses: Cost of sales 181.2 56.6 151.2 (177.8) 211.2 Selling, general and administrative 51.5 14.0 46.3 - 111.8 Research and development 24.7 12.7 1.4 - 38.8 ------ ----- ------ ------- ------ Operating income (loss) 24.6 4.9 17.6 (3.8) 43.3 Nonoperating (income) expense 28.5 (2.6) 1.1 (8.8) 18.2 ------ ----- ------ ------ ------ Earnings (loss) before income taxes (3.9) 7.5 16.5 5.0 25.1 Income taxes (benefit) (2.0) 1.1 7.1 1.8 8.0 ------ ----- ------ ------ ------ Net earnings (loss) $ (1.9) $ 6.4 $ 9.4 $ 3.2 $ 17.1 ====== ===== ====== ====== ======
Non- Guarantor Guarantor Subsi- Subsi- Consoli- Parent diaries diaries dated ------ ------- ------- ----- Condensed Consolidated Statement of Cash Flows Quarter Ended March 31, 2000 Net cash provided (used) by operating activities $(43.0) $(6.1) $ 65.2 $ 16.1 Cash flows from investing activities: Additions to property, plant and equipment (19.6) (1.5) (16.0) (37.1) Proceeds from sale of instruments leased to customers under operating lease arrangements - - 12.0 12.0 Proceeds from sale of property, plant and equipment - - 0.9 0.9 ------ ----- ----- ----- Net cash (used) provided by investing activities (19.6) (1.5) (3.1) (24.2) ------ ----- ----- ----- Cash flows from financing activities: Dividends to stockholders (4.7) - - (4.7) Proceeds from issuance of stock 8.6 - - 8.6 Notes payable (reductions) borrowings 5.7 (0.3) (6.6) (1.2) Net intercompany (reductions) borrowings 35.4 - (35.4) - Long-term debt reductions (17.3) - (1.2) (18.5) ------ ----- ----- ----- Net cash (used) provided by financing activities 27.7 (0.3) (43.2) (15.8) ------ ----- ----- ----- Effect of exchange rates on cash and equivalents - - (1.3) (1.3) (Decrease) increase in cash and equivalents (34.9) (7.9) 17.6 (25.2) Cash and equivalents - beginning of period (5.3) 3.7 36.0 34.4 ------ ----- ----- ----- Cash and equivalents - end of period $(40.2) $(4.2) $ 53.6 $ 9.2 ====== ===== ===== =====
Non- Guarantor Guarantor Subsi- Subsi- Consoli- Parent diaries diaries dated ------ ------- ------- ----- Condensed Consolidated Statement of Cash Flows Quarter ended March 31, 1999 Net cash provided (used) by operating activities $ 16.0 $(31.6) $ 30.6 $ 15.0 ------ ------ ------ ------ Cash flows from investing activities: Additions to property, plant and equipment (13.0) (1.4) (21.1) (35.5) Proceeds from sale of property, plant and equipment 0.6 - - 0.6 ------ ------ ------ ------ Net cash used by investing activities (12.4) (1.4) (21.1) (34.9) ------ ------ ------ ------ Cash flows from financing activities: Dividends to stockholders (4.6) - - (4.6) Proceeds from issuance of stock 3.1 - - 3.1 Notes payable (reductions) borrowings (11.2) - (2.0) (13.2) Net intercompany (reductions) borrowings (4.8) 34.6 (29.8) - Long-term debt borrowings (reductions) 35.0 (0.3) (5.9) 28.8 ------ ------ ------ ------ Net cash (used) provided by financing activities 17.5 34.3 (37.7) 14.1 ------ ------ ------ ------ Effect of exchange rates on cash and equivalents - - 0.2 0.2 ------ ------ ------ ------ (Decrease) increase in cash and equivalents 21.1 1.3 (28.0) (5.6) Cash and equivalents - beginning of period 4.2 (0.1) 20.6 24.7 ------ ----- ------ ------ Cash and equivalents - end of period $ 25.3 $ 1.2 $ (7.4) $ 19.1 ====== ===== ====== ======
8. Contingencies - ------------------ In December 1999, Streck Laboratories, Inc. served Beckman Coulter and Coulter Corporation with a complaint filed in the United States District Court for the District of Nebraska. The complaint alleges that control products sold by Beckman Coulter and/or Coulter Corporation infringe each of five patents owned by Streck, and seeks injunctive relief, damages, attorney fees and costs. We, on behalf of ourselves and on behalf of Coulter Corporation have answered the complaint and have filed a counterclaim against Streck for patent infringement. At this early stage of this matter, there is no reasonable basis for us to conclude that this litigation could lead to an outcome that would have a material adverse effect on our consolidated operations or financial position. In addition to the above matter, we are involved in a number of other lawsuits, which we consider normal in view of our size and the nature of our business. We do not believe that any liability resulting from any such lawsuits will have a material adverse effect on our operations, financial position or liquidity. 9. Business Segment Information - --------------------------------- Statement of Financial Accounting Standards No. 131, "Disclosures about Segments of an Enterprise and Related Information" requires segments to be determined and reported based on how management measures performance and makes decisions about allocating resources. We are engaged primarily in the design, manufacture and sale of laboratory instrument systems and related products. Our organization has two reportable segments: (1) clinical diagnostics and (2) life science research. The clinical diagnostics segment encompasses diagnostic applications, principally in hospital laboratories. The life science research segment includes life sciences and drug discovery applications in universities, medical schools, and pharmaceutical and biotechnology companies. All corporate activities including financing transactions are captured in a central services "Center", which is reflected in the table below. We evaluate performance based on profit or loss from operations. Although primarily operating in the same industry, reportable segments are managed separately, since each business requires different marketing strategies and has different customers. In the first quarter of 2000, we realigned our geographic reporting structure. Our Latin America operations, which were formerly reported with the "Asia and Rest of World" geographic area, are now reported in the "Americas" geographic area along with our North America operations. Prior year amounts have been reclassified to conform to the current year presentation.
(in millions) For the quarters ended March 31, -------- 2000 1999 ---- ---- Net sales Clinical diagnostics $ 353.1 $ 326.7 Life science research 81.3 78.4 Center - - ------- ------- Consolidated $ 434.4 $ 405.1 ======= ======= Operating income (loss) Clinical diagnostics $ 53.5 $ 54.9 Life science research 5.2 6.3 Center (11.9) (17.9) ------- ------- Consolidated $ 46.8 $ 43.3 ======= ======= Interest income Clinical diagnostics $ (0.7) $ (1.0) Life science research - - Center (0.7) (1.0) ------- ------- Consolidated $ (1.4) $ (2.0) ======= ======= Interest expense Clinical diagnostics $ - $ - Life science research - - Center 18.6 18.2 ------- ------- Consolidated $ 18.6 $ 18.2 ======= =======
March 31, 2000 December 31, 1999 -------------- ----------------- Total assets Clinical diagnostics $1,417.2 $1,460.8 Life science research 184.4 178.4 Center 427.6 471.6 -------- -------- Consolidated $2,029.2 $2,110.8 ======== ========
For the quarters ended March 31, 2000 1999 ---- ---- Sales to external customers Americas $262.3 $238.1 Europe 122.4 120.7 Asia 49.7 46.3 ------ ------ Consolidated $434.4 $405.1 ====== ======
March 31, 2000 December 31, 1999 -------------- ----------------- Long-lived assets Americas $ 768.2 $ 753.2 Europe 252.7 308.0 Asia 81.1 83.2 -------- -------- Consolidated $1,102.0 $1,144.4 ======== ========
10. Recent Accounting Developments - ---------------------------------- In December 1999, the Securities and Exchange Commission ("SEC") issued Staff Accounting Bulletin No. 101 ("SAB 101"). SAB 101 provides the SEC's views in applying generally accepted accounting principles to selected revenue recognition issues. As amended, calendar year-end companies that have not applied the accounting requirements of SAB 101 may report a change in accounting principle no later than June 30, 2000. We are currently evaluating the impact of SAB 101 on our consolidated financial statements and results of operations. 11. Subsequent Event - -------------------- On April 6, 2000, our stockholders approved an amendment to the Certificate of Incorporation to increase the authorized shares of common stock from 75,000,000 to 150,000,000. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Overview - -------- Beckman Coulter, Inc. is a world leader in providing systems that simplify and automate laboratory processes used in all phases of the battle against disease. We design, manufacture, market and service a broad range of laboratory systems consisting of instruments, chemistries, software, and supplies that meet a variety of laboratory needs. Our products are used in a range of applications, from instruments used for pioneering medical research and drug discovery to diagnostic tools found in hospitals and physicians' offices. We compete in market segments that total approximately $28 billion in annual sales worldwide. Our diagnostics product lines cover virtually all blood tests routinely performed in hospital laboratories. For medical and pharmaceutical research, we provide a wide range of systems used in genomic, cellular and protein testing. We have approximately 125,000 systems operating in laboratories around the world, with 68% of annual revenues coming from after- market customer purchases of operating supplies, chemistry kits, and service. We market our products in approximately 130 countries, generating nearly 45% of revenues outside the United States. Results of Operations - --------------------- Sales in the first quarter of 2000 were $434.4 million, an increase of 7.2% (9.2% excluding the effect of foreign currency rate changes) compared to the same period in the prior year. Clinical diagnostics sales were $353.1 million and life science research sales were $81.3 million, an increase of 8.1% and 3.6%, respectively, compared to the same period in 1999. Sales in the Americas, Europe, and Asia geographic areas increased 10.2%, 1.4%, and 7.3%, respectively, during the quarter compared to the same period in the prior year. Increased instrument sales in the Americas, led by placements of our clinical chemistry Synchron LX-20 and immunodiagnostics Access units, contributed to the increase in revenues compared to the same period in the prior year. In the life science research business, our robotic automation/genetic analysis products were the primary contributors to our sales growth, led by placements of CEQ 2000 DNA Analysis systems and Sagian Core systems. Europe sales included a one-time $16.6 million sale (proceeds were comprised of $12.0 million in cash and $4.6 million in notes receivable) of clinical chemistry assets in Spain to a third party distributor offset by continuing softness in the German market and weakening of the Euro. For the quarter ended March 31, 1999, sales generated from the clinical chemistry operations in Spain were $5.4 million. The increase of sales in the Asia markets is the result of a strengthening economy in the Southeast Asia Pacific region. Gross profit as a percentage of sales in the first quarter of 2000 was 46.7%, 1.2 percentage points lower than the same period in the prior year. The decline in gross profit percentage is primarily due to the $16.6 million sale of the clinical chemistry assets in Spain which contributed a lower gross profit than historical company levels. Excluding this one-time transaction, gross profit would have been 47.9%. Selling, general and administrative expenses ("SG&A") increased $3.4 million to $115.2 million or 26.5% of sales in the first quarter of 2000 from $111.8 million or 27.6% of sales in the first quarter of 1999. SG&A, as a percentage of sales, declined in the three month period ended March 31, 2000 as compared to the same period in the prior year due to synergies realized from the Coulter integration. Net earnings for the first quarter of 2000 was $21.0 million or $0.70 per diluted share compared to $17.1 million or $0.58 per diluted share in 1999. The increase in net earnings is primarily due to the various reasons discussed previously. Slightly higher interest rates in 2000 contributed to an increase in interest expense from 1999 to 2000, which in turn had an unfavorable impact on net earnings. Financial Condition - ------------------- As discussed in greater detail in our 1999 annual report, Beckman Coulter is a highly leveraged company. Although the debt-to-capital ratio has declined from 81.9% at December 31, 1999 to 80.6% at March 31, 2000, among other things, our high level of debt: - - increases our vulnerability to general adverse economic and industry conditions; - - could limit our ability to obtain additional financing on favorable terms; and - - requires the dedication of a substantial portion of our cash flow from operations to the payment of principal and interest on indebtedness. In addition, our agreements with our lenders contain a number of covenants, which, among other things, require us to comply with specified financial ratios and tests. At March 31, 2000, we believe that we are in compliance with such financial ratios and tests. We have and will continue to evaluate opportunities to provide additional cash flow by monetizing assets during 2000 and beyond, including sales of certain financial assets (primarily consisting of sales-type lease receivables) and real estate assets. Operating activities provided net cash of $16.1 million in the first three months of 2000 compared to net cash provided of $15.0 million in the first three months of the prior year. The primary contributors were: - - net earnings were $21.0 million in 2000 compared to $17.1 million in 1999; - - proceeds from the sale of sales-type lease receivables were $29.9 million in 2000 compared to $18.7 million in 1999; - - reductions in trade and other receivables contributed $28.1 million in cash compared to $33.4 million cash usage in 1999; - - increases in inventories used $37.6 million in 2000 compared to $11.9 million used in 1999; - - cash paid to settle accounts payable, accrued expenses and other liabilities was $68.2 million in 2000 compared to $33.4 million in 1999. In 2000, investing activities used $24.2 million of net cash consisting of $36.2 million of net capital purchases, offset by $12.0 million in proceeds from the sale of clinical chemistry assets in Spain. In 1999, investing activities used $34.9 million of net cash, primarily for capital purchases. Net cash used by financing activities was $15.8 million for the three-month period in 2000 compared to $14.1 million cash provided in 1999. During the first quarter of 2000, we made $19.7 million in cash payments towards reducing our debt compared to net debt borrowings of $15.6 million, during the same period in the prior year. In addition to the decline in our debt-to-capital ratio mentioned previously, the ratio of current assets to current liabilities ("current ratio") improved to 1.8 at March 31, 2000 from 1.7 at December 31, 1999. The decrease in current assets was primarily due to reductions in cash as a result of debt reduction payments and the decrease in trade and other receivables offset by an increase in net inventories. The decrease in current liabilities was due to cash payments to settle accounts payable, accrued expenses and other liabilities. Based upon current levels of operations and anticipated cost savings and future growth, we believe that our cash flow from operations, together with available borrowings under the credit facility and other sources of liquidity will be adequate to meet our anticipated requirements until the maturity of the credit facility in 2002. However, we cannot give any assurance that our business will continue to generate cash flows at or above current levels or that estimated cost savings or growth can be achieved. Our future operating performance and ability to service or refinance our existing indebtedness, including the credit facility, will be subject to future economic conditions and to financial, business and other factors, many of which are beyond our control. On March 9, 2000, we paid a quarterly cash dividend of $0.16 per share of common stock, for a total of $4.7 million. Business Climate - ---------------- The clinical diagnostics and life science research markets are highly competitive and we encounter significant competition in each market from many manufacturers, both domestic and outside the United States. These markets continue to be unfavorably impacted by the economic weakness in parts of Europe and Asia and government and healthcare cost containment initiatives in general. The life science research market also continues to be affected by consolidations of pharmaceutical companies and governmental constraints on research and development spending, especially outside the United States. In the clinical diagnostics market, attempts to lower costs and to increase productivity have led to further consolidation among healthcare providers in the United States, resulting in more powerful provider groups that continue to leverage their purchasing power to contain costs. Preferred supplier arrangements and combined purchases are becoming more commonplace. Consequently, it has become essential for manufacturers to provide cost-effective diagnostic systems to remain competitive. Cost containment initiatives in the United States and in the European healthcare systems will continue to be factors, which may affect our ability to maintain or increase sales. Future profitability may also be adversely affected if the relative value of the U.S. dollar strengthens against certain currencies. Our new products originate from four sources: - - internal research and development programs; - - external collaborative efforts with individuals in academic institutions and technology companies; - - devices and techniques that are generated in customers' laboratories; and - - business and technology acquisitions. The continuing consolidation trend among United States healthcare providers, mentioned previously, has increased pressure on diagnostic equipment manufacturers to broaden their product offerings to encompass a wider range of testing capability, greater automation and higher volume capacity at a lower cost. With our current broad based product offering, Beckman Coulter is the world's leading manufacturer of hematology systems for the clinical analysis of blood cells, where we have a market share twice the size of our next largest competitor. In addition, Beckman Coulter is considered a technology leader in cell counting and characterization and has a number two position in flow cytometry, which is used for both research and clinical applications. The size and growth of our markets are influenced by a number of factors, including: - - technological innovation in bio-analytical practice; - - government funding for basic and disease-related research (for example, heart disease, AIDS and cancer); - - research and development spending by biotechnology and pharmaceutical companies; - - healthcare spending; and - - physician practice. We expect worldwide healthcare expenditures and diagnostic testing to increase over the long-term, primarily as a result of the following: - - growing demand for services generated by the increasing size and aging of the world population; - - increasing expenditures on diseases requiring costly treatment (for example, AIDS and cancer); and - - expanding demand for improved healthcare services in developing countries. In addition to the business climate factors discussed previously, certain economic factors may influence our business, including: - - currency fluctuations - as nearly 45% of our revenues are generated outside the United States; and - - interest rates - as approximately 40% of our debt is under variable interest rate terms. With our leadership position in automated clinical chemistry and our broad based capability in routine clinical chemistry, we are able to offer a broad range of automated systems that together can perform more than 75% of a hospital laboratory's test volume and essentially all of the tests that are considered routine. We believe we are able to provide significant value-added benefits, enhanced through our expertise in simplifying and automating laboratory processes, to our customers. Recent Accounting Pronouncements - -------------------------------- In December 1999, the Securities and Exchange Commission ("SEC") issued Staff Accounting Bulletin No. 101 ("SAB 101"). SAB 101 provides the SEC's views in applying generally accepted accounting principles to selected revenue recognition issues. As amended, calendar year-end companies that have not applied the accounting requirements of SAB 101 may report a change in accounting principle no later than June 30, 2000. We are currently evaluating the impact of SAB 101 on our consolidated financial statements and results of operations. Forward Looking Statements - -------------------------- This Form 10-Q contains forward-looking statements, including statements regarding, among other items: - our business strategy; - anticipated trends in our business; - our liquidity requirements and capital resources; and - the impact of the euro conversion. These forward-looking statements are based on our expectations and are subject to a number of risks and uncertainties, some of which are beyond our control. These risks and uncertainties include, but are not limited to: - complexity and uncertainty regarding development of new high-technology products; - loss of market share through aggressive competition in the clinical diagnostics and life science research markets; - our dependence on capital spending policies and government funding; - the effect of potential healthcare reforms; - fluctuations in foreign exchange rates and interest rates; - reliance on patents and other intellectual property; - unanticipated reductions in cash flows and difficulty in sales of assets; - unanticipated euro problems; and - other factors that cannot be identified at this time. Although we believe we have the product offerings and resources required to achieve our objectives, actual results could differ materially from those anticipated by these forward-looking statements. There can be no assurance that events anticipated by these forward-looking statements will in fact transpire as expected. Item 3. Quantitative and Qualitative Disclosures About Market Risk The Company's cash flow and earnings are subject to fluctuations due to changes in foreign currency exchange rates and interest rates. The Company attempts to limit its exposure to these market risks through the use of various financial instruments. Assuming a hypothetical 10% strengthening and 10% weakening of the spot exchange rates for the U.S. dollar against the foreign currencies at March 31, 2000, a 10% strengthening of the U.S. dollar would result in a gain in fair value of $19.3 million and a 10% weakening of the U.S. dollar would result in a loss in fair value of $18.8 million in these instruments. With respect to interest rates, a one percentage point increase or decrease in interest rates would decrease or increase current year's pre-tax earnings by $2.8 million. For further discussion of the Company's market risk exposure, refer to the section entitled "Financial Risk Management" included in "Management's Discussion and Analysis" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1999. PART II OTHER INFORMATION Item 1. Legal Proceedings In December 1999, Streck Laboratories, Inc. served Beckman Coulter and Coulter Corporation with a complaint filed in the United States District Court for the District of Nebraska. The complaint alleges that control products sold by Beckman Coulter and/or Coulter Corporation infringe each of five patents owned by Streck, and seeks injunctive relief, damages, attorneys fees and costs. Beckman Coulter for itself and on behalf of Coulter Corporation has answered the complaint and has filed a counterclaim against Streck for patent infringement. At this early stage of this matter, there is no reasonable basis for Beckman Coulter to conclude that this litigation could lead to an outcome that would have a material adverse effect on Beckman Coulter's operations or financial position. 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 annual meeting of the Stockholders of the Company (the "Annual Meeting") was held on April 6, 2000. Three members of the Board of Directors whose terms expired at the 2000 Annual Meeting were elected to new terms expiring at the 2003 Annual Meeting. The number of shares voting were as follows: Votes For Votes Withheld --------- -------------- Peter B. Dervan, Ph.D. 24,617,854 501,533 Gavin S. Herbert 24,614,879 504,508 C. Roderick O'Neil 24,612,514 506,873 The remaining members of the Board of Directors who will continue in office and the year in which their terms expire are: Term expiring 2001: Carolyne K. Davis, Ph.D., Ronald W. Dollens, Charles A. Haggerty and William N. Kelley, M.D. Term Expiring in 2002: Hugh K. Coble, Van B. Honeycutt, John P. Wareham, and Betty Woods. The proposal to amend the Company's Fourth Restated Certificate of Incorporation to increase the amount of authorized shares from 75,000,000 to 150,000,000 was adopted. The vote was 21,752,380 for, 3,319,791 against, and 47,216 abstained. Item 5. Other Information None. Item 6. Exhibits and Reports on Form 8-K a) Exhibits 10.1 2000 Annual Incentive Plan (AIP) 11. Statement re Computation of Per Share Earnings: This information is set forth in Note 3, Net Earnings Per Share of the Condensed Consolidated Financial Statements included in Part I herein. 15. Independent Accountants' Review Report, April 27, 2000 27. Financial Data Schedule for the three month period ended March 31, 2000 b) Reports on Form 8-K None. 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. BECKMAN COULTER, INC. (Registrant) Date: May 10, 2000 by JACK E. SOROKIN Jack E. Sorokin Assistant General Counsel Date: May 10, 2000 by PAUL GLYER Paul Glyer Vice President, Director Financial Planning EXHIBIT INDEX FORM 10-Q, FIRST QUARTER, 2000 Exhibit Number Description - ------- ----------- 10.1 2000 Annual Incentive Plan (AIP) 11. Statement re Computation of Per Share Earnings: This information is set forth in Note 3, Net Earnings Per Share, of the Condensed Consolidated Financial Statements included in Part I herein. 15. Independent Accountants' Review Report, April 27, 2000 27. Financial Data Schedule for the three month period ended March 31, 2000 EX-10.1 2 2000 ANNUAL INCENTIVE PLAN (AIP) Beckman Coulter EXHIBIT 10.1 2000 ANNUAL INCENTIVE PLAN (AIP) WHO PARTICIPATES: Key executives designated by the Chairman of the Board based on qualifying factors established by the Organization and Compensation Committee (the Committee) of the Board of Directors. FUNDING THE AIP: The company must achieve a minimum of (minimum amount) EPS for any funding of AIP awards, regardless of any other financial or non- financial results or individual performance. WHAT IS MEASURED - THE AIP COMPONENTS: There are four financial measurements, as well as the individual performance evaluation, which comprise the 2000 AIP award opportunity. The financial metrics have been selected because they directly align with the company's overall goals and objectives: - Earnings Per Share (EPS) - Company Sales - Pre-tax Margin - Debt/EBITDA The individual performance evaluation is linked to the achievement of your goals and objectives, as well as competency development, established and measured through the Performance Success management process. INDIVIDUAL AIP AWARD DETERMINATION: Individual incentive awards are determined by adding the percentages earned based on the level of achievement for financial measurements and your individual performance evaluation. A pro rata incentive award percentage is calculated for gradations between achievement levels for financial results. The sum of the percentages is multiplied by your annual base pay as of December 31, 2000 to arrive at your award amount. For participants with an individual performance rating of "Needs Improvement", the total incentive award for financial results may be reduced by up to 100%. AIP ADMINISTRATION GUIDELINES: The Committee administers the AIP on behalf of the company. This responsibility includes interpretation of the plan and the sole and absolute discretion to establish plan provisions, performance measures, performance targets, specific award levels and participation eligibility. All Committee interpretations, determinations, and actions will be final, conclusive and binding on all participants. The Committee has authorized the Chairman of the Board as its designee in matters of annual plan administration upon its approval of performance measures and targets. AIP TERMS AND CONDITIONS: 1. All financial results will be measured on an "as reported" basis with no adjustment for any effect of currency fluctuations. 2. The Chairman of the Board or his designee will adjust financial measurements and/or calculations as appropriate for mergers, acquisitions, divestitures and/or other one-time or special qualifying events identified as an exception. 3. To be eligible for an AIP award, a participant must be in active pay status continuously through the last company-scheduled workday of the year. Partial payments may be considered, at the full discretion of the Committee or its designee, for retirees as defined by the company's retirement plan, who leave before the end of the plan year. 4. The Committee or its designee may determine in its sole and absolute discretion, the status and incentive award level for any participant whose responsibilities are changed, and of any key employee who becomes eligible to participate in the plan after the beginning of the performance period. 5. The Committee at any time and from time to time may terminate, suspend, modify or amend the plan. Nothing in this plan or any award granted shall confer on a participant any right to continue in the employ of the company or interfere in any way with the right of the company to terminate any employment. EX-15 3 INDEPENDENT ACCOUNTANTS' REVIEW REPORT Exhibit 15 KPMG LLP Center Tower 650 Town Center Drive Costa Mesa, CA 92626 Independent Accountants' Review Report The Stockholders and Board of Directors Beckman Coulter, Inc.: We have reviewed the condensed consolidated balance sheet of Beckman Coulter, Inc. and subsidiaries as of March 31, 2000, and the related condensed consolidated statements of operations and cash flows for the three-month periods ended March 31, 2000 and 1999. These condensed consolidated financial statements are the responsibility of the Company's management. We conducted our review in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the condensed consolidated financial statements referred to above for them to be in conformity with generally accepted accounting principles. We have previously audited, in accordance with generally accepted auditing standards, the consolidated balance sheet of Beckman Coulter, Inc. and subsidiaries as of December 31, 1999, and the related consolidated statements of operations, stockholders' equity and cash flows for the year then ended (not presented herein); and in our report dated January 27, 2000, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, 1999, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived. (KPMG LLP) Orange County, California April 27, 2000 EX-27 4 FINANCIAL DATA SCHEDULE 3-31-00
5 This schedule contains summary financial information extracted from the Condensed Consolidated Balance Sheet and the Condensed Consolidated Statement of Earnings and is qualified in its entirety by reference to such financial statements. 1,000,000 3-MOS DEC-31-2000 MAR-31-2000 9 0 543 26 347 927 799 503 2029 505 1006 0 0 3 242 2029 434 434 232 232 156 1 19 30 9 21 0 0 0 21 0.72 0.70
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