-----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, DAGaKKYDot+NnlRwaKOCagesVmgbBeFep0JPczsU8lnAgosU3pTvuTdAWpw6Uku/ VN0G7WDUe2T8bjbJaM77Tg== 0000898430-99-000552.txt : 19990217 0000898430-99-000552.hdr.sgml : 19990217 ACCESSION NUMBER: 0000898430-99-000552 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990216 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MATTHEWS STUDIO EQUIPMENT GROUP CENTRAL INDEX KEY: 0000855575 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-EQUIPMENT RENTAL & LEASING, NEC [7359] IRS NUMBER: 951447751 STATE OF INCORPORATION: CA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-18102 FILM NUMBER: 99541287 BUSINESS ADDRESS: STREET 1: 3111 N KENWOOD ST CITY: BURBANK STATE: CA ZIP: 91504 BUSINESS PHONE: 8185255200 MAIL ADDRESS: STREET 1: 2405 EMPIRE AVENUE CITY: BURBANK STATE: CA ZIP: 91504 10-Q 1 FORM 10-Q DATED 12/31/1998 United States SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) [X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Period ended December 31, 1998 ----------------- or [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from __________________ to ________________ Commission file number 0-18102 ------- MATTHEWS STUDIO EQUIPMENT GROUP ------------------------------- (Exact name of registrant as specified in its charter) California 95-1447751 ---------- ---------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 3111 North Kenwood Street, Burbank, CA 91505 -------------------------------------- ----- (Address of principal executive offices) (Zip Code) (818) 525-5200 -------------- (Registrant's telephone number, including area code) (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act 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 ___ --- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Common Stock, No Par -------------------- Value 9,200,156 shares as of January 31, 1999. - ----------------------------------------------- Index Matthews Studio Equipment Group and Subsidiaries Part I. Financial Information Item 1. Financial Statements (Unaudited) Condensed consolidated balance sheets - December 31, 1998 and September 30, 1998 Condensed consolidated statements of operations - Three months ended December 31, 1998 and 1997 Condensed consolidated statements of cash flows - Three months ended December 31, 1998 and 1997 Notes to condensed consolidated financial statements - December 31, 1998 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Part II. Other Information Item 6. Exhibits and Reports on Form 8-K Signatures Part I. Financial Information Item I. Financial Statements Matthews Studio Equipment Group and Subsidiaries Condensed Consolidated Balance Sheets ($ in thousands)
December 31, September 30, 1998 1998 ------------ ------------ (Unaudited) (Note) ASSETS: Current Assets: Cash and cash equivalents $ - $ 331 Accounts receivable, less allowance for doubtful accounts of $1,272 at December 31, 1998 and $1,259 at September 30, 1998 9,923 8,981 Current portion of net investment in finance and sales-type leases 343 353 Inventories 3,956 3,783 Prepaid expenses and other current assets 818 536 Income tax refund receivable 965 1,045 Deferred income taxes 1,092 753 -------- -------- Total current assets 17,097 15,782 Property and equipment, net 53,053 51,650 Net investment in finance and sales-type leases, less current portion 213 248 Goodwill less accumulated amortization of $911 at December 31, 1998 and $681 at September 30, 1998 22,801 23,168 Other assets 3,544 3,538 -------- -------- Total assets $ 96,708 $ 94,386 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Accounts payable $ 7,153 $ 4,634 Accrued liabilities 3,572 3,946 Current portion of long-term debt and capital lease obligations 4,522 4,687 -------- -------- Total current liabilities 15,247 13,267 Long-term debt and capital lease obligations less current portion 76,376 74,691 Deferred income taxes 3,815 3,815 Shareholders' equity: Preferred stock - - Common stock 7,153 7,144 Retained earnings 3,699 5,051 -------- -------- 10,852 12,195 Less retired common stock (1,916,450 shares) 9,582 9,582 -------- -------- Total shareholders' equity 1,270 2,613 -------- -------- Total liabilities and shareholders' equity $ 96,708 $ 94,386 ======== ========
Note: The balance sheet at September 30, 1998 has been derived from the audited financial statements at that date. The accompanying notes are an integral part of these consolidated financial statements. Matthews Studio Equipment Group and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) ($ in thousands, except per share data)
Three Months Ended December 31, 1998 1997 Revenues from rental operations $10,064 $ 7,771 Net product sales 4,882 5,686 ------- ------- 14,946 13,457 Costs and expenses: Cost of rental operations 5,950 4,062 Cost of product sales 3,753 3,860 Selling, general and administrative 5,041 4,420 Interest, net 1,893 1,110 ------- ------- 16,637 13,452 Income (loss) before income taxes (1,691) 5 Income taxes provision (benefit) (339) 2 ------- ------- Net income (loss) (1,352) $ 3 ======= =======
Income (loss) per common share, basic and diluted ($0.15) $ 0.00 ====== ====== The accompanying notes are an integral part of these consolidated financial statements. Matthews Studio Equipment Group and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) ($ in thousands)
Three Months Ended December 31, 1998 1997 ----- ----- Operating activities: Net income (loss) $(1,352) $ 3 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Provision for doubtful accounts receivable 14 41 Depreciation and amortization 2,836 1,867 Deferred income taxes (339) - Gain on sale of assets (65) (105) Changes in operating assets and liabilities net of effects from acquisitions: Accounts receivable (956) 832 Inventories (173) (585) Net investment in leases 45 83 Prepaids and other assets (224) 12 Accounts payable and accrued liabilities 2,145 (1,692) Income tax refund receivable 80 - ------- ------- Net cash provided by operating activities 2,011 456 Investing activities: Payment for acquisitions (1,800) Purchase of property and equipment (3,635) (4,227) Proceeds from sale of property and equipment 141 209 ------- ------ Net cash used in investing activities (3,494) (5,818) Financing activities: Proceeds from exercise of stock options 9 12 Proceeds from borrowings 1,843 7,019 Repayment of borrowings (700) (1,495) ------- ------- Net cash provided by financing activities 1,152 5,536 Net increase (decrease) in cash and cash equivalents (331) 174 Cash and cash equivalents at beginning of period 331 393 ------- ------- Cash and cash equivalents at end of period $ - $ 567 ======= =======
The accompanying notes are an integral part of these consolidated financial statements.
Matthews Studio Equipment Group and Subsidiaries Condensed Consolidated Statements of Cash Flows (continued) (Unaudited) ($ in thousands) Three Months Ended December 31, 1998 1997 -------- -------- Schedule of noncash investing and financing transactions: Common stock issued for acquired company $ - $ 884 Capital lease obligations incurred 377 - Additional disclosures: Cash paid during period for: Interest 1,794 1,069
The accompanying notes are an integral part of these consolidated financial statements. Matthews Studio Equipment Group and Subsidiaries Notes to Consolidated Financial Statements (continued) (Unaudited) 1. General Presentation The accompanying unaudited condensed consolidated financial statements of Matthews Studio Equipment Group and Subsidiaries (the "Company") have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended December 31, 1998 are not necessarily indicative of the results that may be expected for the year ending September 30, 1999, due to fluctuations in film production activities. For further information refer to the consolidated financial statements and footnotes thereto included in the Company's annual report on Form 10-K for the year ended September 30, 1998. Business The Company sells, leases and rents audio, video, theatrical, film and production equipment and accessories, to the motion picture, television, corporate, theatrical, video and photography industries. The Company operates in one business segment and provides, as a single source, the necessary production equipment which is otherwise only available by using many different suppliers. The Company supplies equipment such as lights, grip lighting supports, professional video equipment, camera mounts, tripods, pedestals, fluid heads, camera dollies, portable camera cranes, power generators and production trucks. In addition, the Company has fully operational and equipment supplied soundstages and studios. 2. Accounting Policies Principles of Consolidation - The financial statements include the accounts of the Company and its subsidiaries as of the respective date each subsidiary was acquired. All significant intercompany balances and transactions have been eliminated. Use of Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash Equivalents - The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The carrying value of these instruments approximates market value because of their short maturity. Matthews Studio Equipment Group and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) Concentration of Credit Risk - The Company's customers are located around the world and are principally engaged in motion picture and television production, theatrical production, corporate video, commercial photography, or in providing rental equipment to companies in these industries. The Company generally sells on credit terms of 30 days and does not require collateral, except for items sold under capital leases in which it retains a security interest. The Company rents equipment under short-term operating leases on credit terms of generally 30 days and retains a security interest. Fair Values of Financial Instruments - The Statement of Financial Accounting Standards No. 107 "Disclosure About Fair Value of Financial Instruments" ("SFAS No. 107") requires disclosure of fair value information about most financial instruments both on and off the balance sheet, if it is practicable to estimate. SFAS No. 107 excludes certain financial instruments such as certain insurance contracts and all non-financial instruments from its disclosure requirements. A financial instrument is defined as a contractual obligation that ultimately ends with the delivery of cash or an ownership interest in an entity. Disclosure regarding the fair value of financial instruments is derived using external market sources, estimates using present value or other valuation techniques. Cash, accounts receivable, accounts payable, accrued and other liabilities and short-term revolving credit agreements and variable rate long-term debt instruments approximate their fair value. Inventories - Inventories are principally stated at the lower of first-in, first-out cost or market. Other Assets - Included in other assets are loan fees that are being amortized as interest expense over the term of the bank facility. Goodwill - Goodwill represents the excess of cost over the fair value of net assets acquired and is amortized using the straight-line method, generally over 25 years. Useful lives are determined on a case by case basis for each business acquired. The carrying value of goodwill is reviewed if the facts and circumstances suggest that it may be impaired. If this review indicates that goodwill will not be recoverable, as determined based on estimated undiscounted cash flows of the Company over the remaining amortization period, the Company's carrying value would be reduced by the estimated shortfall of discounted cash flows. Property and Equipment - Property and equipment, including items purchased under capital leases, are recorded at cost. Costs incurred for major renewals and betterments that extend the useful life of the assets are capitalized, whereas repair and maintenance costs are charged to expense as incurred. When property is retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in income. Depreciation and amortization is calculated using the straight-line method over the estimated useful lives of the assets as follows: Matthews Studio Equipment Group and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) Rental equipment 5 - 10 years Buildings and improvements 10 - 40 years Other 5 - 10 years Leasehold improvements are amortized over the estimated useful lives, or the term of the related leases, for improvements, whichever is shorter. Revenue Recognition - The Company recognizes revenue from rentals under operating leases in the week in which they are earned and recognizes product sales upon shipment. Per Share Data - During the year ended September 30, 1998, the Company adopted the statement of Financial Accounting Standards No. 128 "Earnings Per Share" ("SFAS No. 128") which established standards for computing and presenting earnings per share ("EPS") for publicly-held common stock or potential common stock. SFAS No. 128 supersedes the standards for computing earnings per share previously found in APB opinion No. 15 "Earnings per Share" and simplifies the standards for computing earnings per share. In addition, SFAS No. 128 replaces the presentation of primary earnings per share with a presentation of basic earnings per share, requires dual presentation of basic and diluted earnings per share on the face of the income statement for all entities with complex capital structures, and requires a reconciliation of the numerator and denominator on the basic earnings per share computation to the numerator and denominator of the diluted earnings per share computation. All periods presented reflect the adoption of SFAS No. 128. Income Taxes - The Company utilizes the liability method to determine the provision for income taxes. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. For the three months ended December 31, 1998 and 1997, an effective income rates of 20% and 40% were utilized, respectively. Long-Lived Assets - Long-lived assets used in operations are reviewed periodically to determine that the carrying values are not impaired and if indicators of impairment are present or if long-lived assets are expected to be disposed of, impairment losses are recorded. Matthews Studio Equipment Group and Subsidiaries Notes to Consolidated Financial Statements (continued) (Unaudited) 3. Earnings Per Share The following is a reconciliation of the computations for basic and diluted EPS:
For the Quarter Ended December 31, --------------------------------------------------------------------------------------------- 1998 1997 ----------------------------------------- ----------------------------------------- Income Shares Per-Share Income Shares Per-Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount ----------- ------------- ----------- ----------- ------------- ---------- Basic EPS: Income available to common stockholders $ (1,352) 9,117 $ (0.15) $ 3 10,987 $ 0.00 ======== ======== Effect of Dilutive Options and warrants 1593 -------- ------ ------ ---- Diluted EPS: Income available to common Stock holders and assumed conversions $ (1,352) 9,117 $ (0.15) $ 3 12,580 $ 0.00 ======== ====== ======== ======= ====== =======
Options to purchase 741,000 shares of common stock at a range of $2.94 to $4.74 per share, and options to purchase 119,000 shares of common stock at a range of $4.13 to $4.74 per share, were outstanding during the quarter ended December 31, 1998 and 1997 respectively, but were not included in the computation of diluted EPS because the options' exercise prices were greater than the average market price of the common shares. The Company applies APB Opinion 25, "Accounting for Stock Issued to Employees," and related Interpretations in accounting for its stock-based compensation plans. Accordingly, no compensation cost has been recognized for its fixed stock option plans. Had compensation cost for the Company's option plans been determined based on the fair value at the grant dates for awards under those plans consistent with the method of FASB Statement 123, "Accounting for Stock-Based Compensation," the Company's net income (loss) and earnings per share would have been reduced to the pro forma amounts indicated below (in thousands, except per share data):
Three Months Ended December 31, 1998 1997 ---- ---- Net income (loss) As reported $ (1,352) $ 3 Pro forma (1,387) (16) Net income (loss) per share, basic and diluted As reported (0.15) - As Pro forma (0.15) -
Matthews Studio Equipment Group and Subsidiaries Notes to Consolidated Financial Statements (continued) (Unaudited) 4. Acquisition and disposition The pro forma results of operations for the three months ended December 31, 1997, assuming consummation of the acquisition of Four Star and Olesen and disposal of the manufacturing operations as of October 1, 1997, are as follows ($ in thousands, except per share data):
Three Months Ended December 31, 1997 ------------------ Net revenue $14,076 Net income (loss) (190) Net income (loss) per common share, basic and diluted (0.02)
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS The Company is including the following cautionary statement in this Form 10-Q to make applicable and take advantage of safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for any forward looking statements made by, or on behalf of, the Company. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements which are other than statements of historical facts. From time to time, the Company may publish or otherwise make available forward-looking statements of this nature. All such subsequent forward-looking statements, whether written or oral, and whether made by or on behalf of the Company, are also expressly qualified by these cautionary statements. Certain statements contained herein are forward- looking statements and accordingly involve risks and uncertainties which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. Results of Operations Overview The Company continued its principal strategy to expand and strengthen its equipment rental operations during the first three months of fiscal 1999. In addition, the Company continued to focus on opportunities to provide its products and services from outlets located in different parts of the United States as well as expanding its product lines. The development of a marketing and distribution network in select geographic marketplaces throughout the United States enabled the Company to improve rental asset utilization and expand the Company's core businesses. Company revenues for the first three months of fiscal 1999 increased to $14,946,000, an increase of $1,489,000 or 11% over the first three months of fiscal 1998. In addition, EBITDA (earnings before interest expense, income taxes, depreciation and amortization) increased to $3,038,000 in the first quarter of fiscal 1999 as compared to $2,982,000 in fiscal 1998. The EBITDA for the first three months of fiscal 1998 included $143,000 from the manufacturing operation which was sold during the fourth quarter of fiscal 1998. Net loss for the first quarter 1999 was $1,352,000 or $0.15 per share compared to net income of $3,000 or $0.00 per share for the same period last year. Components of the Company's operating results are discussed below. Revenues From Rental Operations - ------------------------------- Revenues from rental operations were $10,064,000 for the first three months of fiscal 1999, compared to $7,771,000 for the same period last year, an increase of $2,293,000 or 30%. Approximately 31% of rental revenues were generated by two theatrical rental operations acquired in November 1997 and April 1998. Rental revenue from production equipment rentals, primarily of lighting, grip, power generators and trucks, decreased by approximately $465,000 or 11% to $3,640,000 in the first quarter of fiscal 1999 from $4,105,000, for the same period last year. In addition, revenues from video equipment rentals decreased $175,000 or 6% in the first three months of fiscal 1999, to $2,524,000 from $2,699,000 in the first quarter of fiscal 1998. The decrease is primarily due to industry-wide slowdown. Net Product Sales - ----------------- Net equipment and supply sales were $4,882,000 for the first three months of fiscal 1999, a decrease of $804,000 or 14%, from $5,686,000 for the first three months of fiscal 1998. The decrease is primarily due to the disposal of the manufacturing operations during the fourth quarter of last year. Excluding the manufacturing operations which accounted for $2,569,000 of the net equipment and supply sales of the first quarter of last year, sales increased $1,765,000 or 57% over the first quarter of fiscal 1998. The increase is primarily due to the acquisition of Olesen in November 1997 and the expansion into Las Vegas, Nevada at the end of the third quarter of fiscal 1998. Gross Profit - Rental - --------------------- Gross profit on rental revenues was $4,114,000 or 41% of revenues for the first three months of fiscal 1999 compared to $3,709,000 or 48% in fiscal 1998. The two theatrical rental operations acquired during first and second quarters of fiscal 1998 accounted for approximately $1,969,000 of gross profit on rental revenues. Production equipment rentals, primarily of lighting, grip, power generators and trucks accounted for approximately $1,676,000 and the video equipment rentals accounted for approximately $423,000. The decrease in gross profit percentage resulted primarily from general industry wide slow-down of the production and video equipment rental businesses and the fixed nature of some costs such as depreciation. The Company experienced some price softening and margin erosion as a result of the slow down. Depreciation expense for rental operations was $2,246,000 in the first quarter of 1999 compared to $1,563,000 in 1998. Gross Profit - Sales - -------------------- Gross profit on sales decreased from $1,826,000 in the first quarter of 1998 to $1,129,000 in the first quarter of 1999. Included in the 1998 results is gross profit of $979,000 from the manufacturing subsidiary. As a percentage of sales, gross profit was approximately 23% for the first three months of fiscal 1999, compared to approximately 32% for the same period in fiscal 1998. The lower gross profit percentage realized by the Company was primarily attributable to the increase in expendable supply product sales, which have lower gross profit margins than did the equipment sales of the manufacturing operation. Some margin erosion also resulted from the industry slow down. Selling, General and Administrative - ----------------------------------- Selling, general and administrative expenses were $5,041,000 in the first three months of fiscal 1999 compared to $4,420,000 for the same period in fiscal 1998. As a percent of sales, selling, general and administrative expenses were 34% for the first three months of fiscal 1999 compared to 33% for the same period in fiscal 1998, an increase of $621,000. The dollar increase is due primarily to costs and expenses incurred to expand the operations of the Company, including costs to pursue the growth strategy, improve the foundation for the operations and improve and integrate business systems. These costs were incurred in anticipation of the growth in revenues, which has been impacted by the industry slow down. Interest - -------- Interest increased to $1,893,000 in the first three months of fiscal 1999 from $1,110,000 in the first three months of fiscal 1998. The increase in interest costs is mainly due to additional debt incurred and assumed in acquisitions completed after the first quarter of fiscal 1998, and to the additional capital investment made. Liquidity and Capital Resources - ------------------------------- During the three months ended December 31, 1998, the Company financed its operations from internally generated cash flow and bank borrowings. At December 31, 1998 the Company's working capital was $1,850,000 which was a decrease of $665,000 from its working capital at September 30, 1998. The Company primarily applied cash from additional borrowings from the Company's bank line of $1,843,000 to pay down capital lease obligations and other debt incurred in previous years acquisitions. The major components of the net capital equipment additions were equipment for the Company's theatrical rental operations of approximately $2,677,000 and equipment additions to other rental operations (primarily video rental operations) of approximately $791,000. In January 1999, in connection with the issuance of a $3,000,000 letter of credit by ING in favor of the lenders, the Company amended its bank agreement. As a result, the revolving credit loan was reduced to $61,000,000, the covenants were modified for fiscal 1999 and the effects of prior defaults were eliminated either through waiver or modification of certain covenants. As of the date of the amendment, the Company had approximately $5,100,000 available under its revolving line of credit. During the next twelve months, the Company expects to purchase new capital equipment to allow its operations to be more efficient, support growth and to control cost. The Company expects to finance its capital acquisition program through a combination of cash generated from operations and additional borrowings under its bank line. The Company believes it will have sufficient funds from operations and bank borrowings to meet its anticipated requirements for working capital during the next twelve months. PART II. Other Information Item 6. Exhibits and Reports on Form 8-K (a) The following exhibits are filed herewith: 27 Financial Data Schedule (in Edgar filing only) (b) The Company did not file any reports on Form 8-K during the three months ended December 31, 1998. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this quarterly report on Form 10-Q for the period ending December 31, 1998, to be signed on its behalf by the undersigned hereunto duly authorized. MATTHEWS STUDIO EQUIPMENT GROUP (Registrant) Date: February 11, 1999 By: /S/ Carlos D. DeMattos _____________________________________________ Carlos D. DeMattos Chairman of the Board, President and Chief Executive Officer By: /S/ Alan S. Unger _____________________________________________ Alan S. Unger Chief Financial Officer EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10Q PERIOD ENDED DECEMBER 31, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS 1,000 3-MOS SEP-30-1999 OCT-01-1998 DEC-31-1998 0 0 11,195 1,272 3,956 17,097 81,600 28,547 96,708 15,247 0 0 0 7,153 (5,883) 96,708 4,882 14,946 3,753 9,703 0 14 1,893 (1,691) (339) (1,352) 0 0 0 (1,352) (0.15) (0.15)
-----END PRIVACY-ENHANCED MESSAGE-----