-----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, DJdTarVK/lahNf1NqTZLkG/D/7uuNdgMS3uonbI4UhWzPP3PDlv3CUPpTaZ7Pt9F l4h/AP6KwH3R/m99iV09qw== 0000085608-97-000012.txt : 19971111 0000085608-97-000012.hdr.sgml : 19971111 ACCESSION NUMBER: 0000085608-97-000012 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970928 FILED AS OF DATE: 19971110 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: MATEC CORP/DE/ CENTRAL INDEX KEY: 0000085608 STANDARD INDUSTRIAL CLASSIFICATION: STEEL WORKS, BLAST FURNACES & ROLLING & FINISHING MILLS [3310] IRS NUMBER: 060737363 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-04184 FILM NUMBER: 97711921 BUSINESS ADDRESS: STREET 1: 75 SOUTH ST CITY: HOPKINTON STATE: MA ZIP: 01748 BUSINESS PHONE: 5084359039 MAIL ADDRESS: STREET 1: 75 SOUTH STREET CITY: HOPKINTON STATE: MA ZIP: 01748 FORMER COMPANY: FORMER CONFORMED NAME: RSC INDUSTRIES INC DATE OF NAME CHANGE: 19840515 FORMER COMPANY: FORMER CONFORMED NAME: REEVES INDUSTRIES INC DATE OF NAME CHANGE: 19710520 10-Q 1 FORM 10Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 28, 1997 ----------------------------------------- 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 1-4184 -------------------------------------------------- MATEC Corporation - ------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 06-0737363 - ------------------------------- ------------------------- (State or other jurisdiction of (I.R.S Employer incorporation or organization) Identification Number) 75 South St., Hopkinton, Massachusetts 01748 - ---------------------------------------- ------------- (Address of principal executive offices) (Zip Code) (508) 435-9039 - ------------------------------------------------------------------------- (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 --- --- As of November 7, 1997, the number of shares outstanding of Registrant's Common Stock, par value $.05 was 2,733,661. -1- MATEC Corporation Index Page ---- PART I. FINANCIAL INFORMATION Consolidated Condensed Balance Sheets - September 28, 1997 and December 31, 1996 ................ 3 Consolidated Statements of Operations - Three Months and Nine Months Ended September 28, 1997 and September 29, 1996 4 Consolidated Condensed Statements of Cash Flows - Nine Months Ended September 28, 1997 and September 29, 1996 5 Notes to Consolidated Condensed Financial Statements ..... 6-7 Management's Discussion and Analysis of Financial Condition and Results of Operations ..................... 8-11 PART II. OTHER INFORMATION Item 6 - Exhibits and Reports on Form 8-K ................ 12 Signatures ..................................................... 13 -2- PART I - FINANCIAL INFORMATION Item 1. Financial Statements MATEC Corporation and Subsidiaries Consolidated Condensed Balance Sheets (In thousands, except share data) (Unaudited) 9/28/97 12/31/96(a) -------- -------- ASSETS Current assets: Cash and cash equivalents ............................ $ 588 $ 610 Receivables, net ..................................... 3,157 3,716 Inventories .......................................... 3,322 2,890 Deferred income taxes and other current assets ....... 1,032 955 ------- ------- Total current assets ............................... 8,099 8,171 ------- ------- Property, plant and equipment, at cost ................. 12,091 11,980 Less accumulated depreciation ........................ 8,102 7,788 ------- ------- 3,989 4,192 ------- ------- Marketable equity securities ........................... 3,752 2,782 Net assets of discontinued operations .................. 5,740 5,520 Other assets ........................................... 92 78 ------- ------- $21,672 $20,743 ======= ======= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Notes payable ........................................ $ 250 $ 650 Current portion of long-term debt .................... - 200 Accounts payable ..................................... 1,250 1,080 Accrued liabilities .................................. 1,284 1,183 Income taxes ......................................... 243 119 ------- ------- Total current liabilities .......................... 3,027 3,232 ------- ------- Deferred income taxes .................................. 2,071 1,652 Long-term debt ......................................... 1,988 1,984 Stockholders' equity: Preferred stock, $1.00 par value- Authorized 1,000,000 shares; issued none ............ - - Common stock, $.05 par value- Authorized 10,000,000 shares; Issued 3,804,195 shares 190 190 Capital surplus ...................................... 6,443 6,443 Retained earnings .................................... 11,164 10,955 Net unrealized gain on marketable equity securities .. 2,152 1,570 Treasury stock at cost, 1,070,534 and 1,049,467 shares (5,363) (5,283) ------- ------- Total stockholders' equity ...................... 14,586 13,875 ------- ------- $21,672 $20,743 ======= ======= (a) Restated for discontinued operations. See notes to consolidated condensed financial statements. -3- MATEC Corporation and Subsidiaries Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Three Months Ended Nine Months Ended 9/28/97 9/29/96(a) 9/28/97 9/29/96(a) -------- -------- -------- -------- Net sales ....................... $ 4,548 $ 3,499 $ 12,216 $ 14,110 Cost of sales ................... 3,224 2,711 8,919 10,137 ------- ------- -------- -------- Gross profit .................. 1,324 788 3,297 3,973 Operating expenses: Selling and administrative .... 1,043 725 3,010 3,336 Research and development ...... 28 130 95 440 Restructuring ................. - - (90) - ------- ------- -------- -------- 1,071 855 3,015 3,776 Operating profit (loss) ......... 253 (67) 282 197 Other income (expense): Interest expense ............... (62) (79) (187) (271) Other, net ..................... 12 21 17 33 ------- ------- -------- -------- (50) (58) (170) (238) Earnings (loss) from continuing operations before income taxes . 203 (125) 112 (41) Income tax (expense) benefit .... (81) 48 (44) 15 ------- ------- -------- -------- Earnings (loss) from continuing operations ..................... 122 (77) 68 (26) Earnings from discontinued operations, net of income taxes 64 125 141 467 ------- ------- -------- -------- Net earnings .................... $ 186 $ 48 $ 209 $ 441 ======= ======= ======== ======== Earnings (loss) per share: Continuing operations ......... $ .05 $(.03) $ .03 $(.01) Discontinued operations ....... .02 .05 .05 .17 ----- ----- ----- ----- $ .07 $ .02 $ .08 $ .16 ===== ===== ===== ===== Average shares outstanding ...... 2,734 2,774 2,738 2,768 ===== ===== ===== ===== Cash dividends per share ........ $ - $ - $ - $ - ===== ===== ===== ===== (a) Restated for discontinued operations. See notes to consolidated condensed financial statements. -4- MATEC Corporation and Subsidiaries Consolidated Condensed Statements of Cash Flows (In thousands) (Unaudited) Nine Months Ended 9/28/97 9/29/96(a) -------- -------- Cash flows from operating activities: Net earnings (loss) from continuing operations ... $ 68 $ (26) Adjustments to reconcile net earnings to net cash provided by operating activities: Non-cash items ................................. 500 490 Changes in operating assets and liabilities .... 503 817 ------- ------- Net cash provided by operating activities 1,071 1,281 - ---------------------------------------------------------------------- Cash flows from investing activities: Capital expenditures, net ........................ (309) (347) Other, net........................................ (16) (6) ------- ------- Net cash (used) by investing activities (325) (353) - ---------------------------------------------------------------------- Cash flows from financing activities: Net repayments under lines of credit ............. (400) (650) Payments on long-term debt ....................... (200) (228) Purchases of treasury stock ...................... (80) - Stock options exercised .......................... - 45 ------- ------- Net cash (used) by financing activities (680) (833) - ---------------------------------------------------------------------- Cash provided (used) by discontinued operations (88) 126 - ---------------------------------------------------------------------- Net increase (decrease) in cash and cash equivalents (22) 221 Cash and cash equivalents: Beginning of period .............................. 610 695 ------- ------- End of period .................................... $ 588 $ 916 ======= ======= (a) Restated for discontinued operations. See notes to consolidated condensed financial statements. -5- MATEC Corporation and Subsidiaries Notes to Consolidated Condensed Financial Statements 1. Financial Presentation: The interim financial statements are unaudited but, in the opinion of management, reflect all adjustments necessary for fair presentation of results for such periods. The results of operations for any interim period are not necessarily indicative of results for the full year. The accounting policies followed by the Company are set forth in Note 1 to the Company's financial statements in the 1996 MATEC Corporation and Subsidiaries Annual Report which is incorporated by reference in Form 10-KSB for the year ended December 31, 1996. 2. Discontinued Operations: In the third quarter of 1997, the Company adopted a plan to sell its Bergen Cable Technologies, Inc. ("BCT") subsidiary. Disposition alternatives are being considered and discussions are being held with prospective purchasers. The Company expects to realize a gain on the disposition of BCT. BCT had represented the Company's steel cable segment of operations. The operating results of BCT have been reported as discontinued operations, and previously reported financial statements have been restated to reflect this disposition. The operating results of BCT are presented in the Consolidated Statements of Operations under the caption "Earnings from discontinued operations, net of taxes" and include: Three Months Ended Nine Months Ended 9/28/97 9/29/96 9/28/97 9/29/96 ------- ------- ------- ------- (in thousands) Net sales .................. $ 3,785 $ 3,126 $11,107 $ 9,280 Earnings before income taxes 106 201 235 753 Income (taxes) ............. ( 42) (76) (94) (286) Net earnings ............... 64 125 141 467 Net assets of BCT include the following: 9/28/97 12/31/96 ------- -------- (in thousands) Current assets ................... $ 5,458 $ 4,980 Property, plant and equipment, net 2,470 2,252 Current liabilities .............. 2,188 1,712 ------- ------- Net assets of discontinued operations $ 5,740 $ 5,520 ======= ======= All of the assets of BCT, except for real estate, are pledged as collateral against the Company's Term Debt Note ($2 million face amount) due in 2000. -6- 4. Receivables: Receivables consist of the following (in thousands): 9/28/97 12/31/96 ------- -------- Accounts receivable, less allowance for doubtful accounts of $112 and $85 ...... $ 2,991 $ 3,450 Costs and estimated earnings in excess of billings on uncompleted contracts ...... 52 142 Refundable income taxes ................. 114 124 ------- -------- $ 3,157 $ 3,716 ======= ======== 5. Inventories: Inventories consist of the following (in thousands): 9/28/97 12/31/96 ------- -------- Raw materials ....................... $ 980 $ 1,053 Work in process ..................... 1,252 572 Finished goods ...................... 1,090 1,265 ------- ------- $ 3,322 $ 2,890 ======= ======= 6. New Accounting Standards: In February 1997, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No. 128, "Earnings Per Share". The Company will adopt this SFAS in the fourth quarter of 1997, as required and will continue to apply APB Opinion No. 15, "Earnings Per Share" until then. The new Statement specifies the computation, presentation, and disclosure requirements for earnings per share and the new calculation is not expected to have a material effect on the Company's calculations of earnings per share. In February 1997, the FASB issued SFAS No. 129, "Disclosure of Information about Capital Structure" that requires certain disclosures concerning the capital structure of an entity and is effective with the Company's 1997 annual financial statements. Adoption of this Statement is not expected to materially change the Company's capital structure disclosure. In June 1997, the FASB issued SFAS No. 130, "Reporting Comprehensive Income" and SFAS No. 131, "Disclosure about Segments of an Enterprise and Related Information". SFAS No. 130 establishes standards for reporting and displaying comprehensive income and is effective for the Company's 1998 financial statements. Adoption of this Statement will have no effect on the Company's results of operations or financial position. SFAS No. 131 establishes standards for reporting annual and interim operating segment information and is effective for the Company's 1998 annual financial statements and interim reporting beginning in 1999. Adoption of this Statement will have no effect on the Company's financial position or consolidated results of operations. -7- Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources - ------------------------------- Cash and cash equivalents decreased $22,000 during the nine months ended September 28, 1997. The Company's continuing operations generated $1,071,000 in cash during this period, while investing and financing activities used cash of $325,000 and $680,000, respectively. The primary sources of cash from continuing operations were net earnings of $68,000, the net noncash items, mainly depreciation, of $500,000 and $503,000 from the favorable change in operating assets and liabilities. A decrease in receivables and an increase in payables, offset in part by an increase in inventory, were the primary reasons for the decrease in net operating assets. The receivables decrease from the December 31, 1996 level is mainly due to a reduction in the number of days sales in receivables. The increase in accounts payable is mainly attributable to the timing of inventory purchases and the increase in inventory. The main reason for the increase in inventory was the higher level in the instrument segment to support its current backlog of orders. The Company's principal investing activity during the nine months ended September 28, 1997 was the purchase of $309,000 of capital equipment mainly in the electronics segments. These additions are geared toward adding new and upgrading existing production capabilities and processes within this segment. During the nine months ended September 28, 1997, the Company reduced its lines of credit borrowings by $400,000 and its long-term debt by $200,000. At September 28, 1997, the Company's continuing operations unused portion of its lines of credit arrangements was $1,600,000. Management believes that based on its current debt arrangements, its current working capital, and the expected cash flows from operations the Company's resources are sufficient to meet its financial needs in 1997 including a remaining capital expenditures budget of approximately $350,000. -8- Results of Operations -- Overview -- - ------------------------------------ Net sales for the quarter ended September 28, 1997 increased $1,049,000 (30%) from 1996, as higher sales in the electronics were partially offset by lower sales in the instruments segment. During the nine months ended September 28, 1997, net sales decreased $1,894,000 (13%), mainly as a result of decreased sales in the instruments segment. During the quarter ended September 28, 1997, the overall gross profit percentage increased 29% over 1996 as a result of increased margins in both the electronics and instruments segments. During the nine months ended, the overall gross profit percentage decreased slightly from last year due mainly to lower margins in the electronics segment. Total selling and administrative expenses for the quarter ended September 28, 1997 increased $318,000 (44%) over 1996. Selling expenses increased $182,000 mainly as a result of higher expenses in the electronics segment. Administrative expenses increased $136,000 primarily due to the $100,000 severance expense recorded for the former president of the Company. During the nine months ended, selling and administrative expenses decreased $326,000 (10%) from last year mainly as a result of decreased selling expenses in the instruments segment. The reductions in research and development expenses resulted from decreased expenses in the instruments segment. The restructuring credit represents a cash recovery, net of legal expenses, from the sale of one of the product lines in the instruments segment. During the quarter and nine months ended September 28, 1997, the interest expense reductions were due to lower levels of short and long-term debt. Other income (expense), net includes the following (in thousands): Quarter Ended Nine Months Ended 9/28/97 9/29/96 9/28/97 9/26/96 ------- ------- ------- ------- Dividend income ........... $ 16 $ 13 $ 47 $ 39 Real estate operations .... (3) (9) (40) (32) Interest income ........... 1 16 9 20 Other, net ................ (2) 1 1 6 ------- ------- ------- ------- $ 12 $ 21 $ 17 $ 33 ======= ======= ======= ======= The changes in the results of the real estate operations are mainly due to the amounts of rental income earned. During the quarter ended September 29, 1996, interest income resulted mainly from interest received on excise tax refunds. The estimated effective income tax rate for 1997 is 40% compared to 38% in 1996. -9- The Company reported a $253,000 operating profit during the quarter ended September 28, 1997 versus a $67,000 loss in 1996 based on the increased sales level and gross margin, partially offset by higher operating expenses. The net nonoperating expenses decreased slightly from 1996. As a result, the Company reported a $203,000 pre-tax profit from continuing operations during the quarter ended September 28, 1997 compared to a pre-tax loss of $125,000 during the comparable quarter in 1996. Net earnings for the three months ended September 28, 1997 amounted to $186,000 and includes net earnings from discontinued operations of $64,000. This compares to net earnings of $48,000 in 1996, which includes net earnings of $125,000 from discontinued operations. During the nine months ended September 28, 1997, operating profit amounted to $282,000 compared to $197,000 in 1996. The increase performance over 1996 was mainly due the lower operating expenses, partially offset by the the lower gross profit realized on the lower sales volume. Nonoperating expenses decreased $68,000 from 1996 mainly as a result of decreased interest expense. As a result, pre-tax earnings from continuing operations amounted to $112,000 for the nine months ended September 28, 1997 versus a $41,000 loss in the comparable 1996 period. Net earnings for the nine months ended amounted to $209,000 and includes net earnings from discontinued operations of $141,000. This compares to net earnings of $441,000 in 1996, which includes net earnings of $467,000 from discontinued operations. Business Segment Results - ------------------------ The following table presents by segment the amounts and percentages of sales increase (decrease) from the corresponding prior year periods. Quarter Ended Nine Months Ended 9/28/97 9/28/97 --------------- ---------------- Segment (000's) % (000's) % - --------------------- ------- --- ------- --- Electronics ......... $ 1,391 69 $ (2) - Instruments ......... (342) (23) (1,892) (42) ------- ------- Total $ 1,049 30 $(1,894) (13) ======= ======= Electronics - ----------- The sales increase during the quarter ended September 28, 1997 in the electronics segment was primarily due to increased demand and improved market conditions of both the OEM and contract manufacturers in the telecommunications market. During this quarter, the Company began to see a positive turnaround in this market. During the end of the second quarter of 1996, the Company began to see softness in its order input from customers in the telecommunications industry, one of the largest current markets for the Company's products. On a year-to-date basis, sales are level with last year, mainly as a result of the strong current quarter sales. During the quarter ended, the overall gross profit percentage more than doubled from 1996 mainly as a result of the effect of allocating the fixed overhead expenses over the increased sales level. During the nine months ended, the overall gross profit percentage declined slightly from 1996. During the quarter ended, total operating expenses increased (33%) from 1996 mainly as a result of increased sales commission, advertising, and bad debt expense. -10- During the nine months ended September 28, 1997, total operating expenses in the electronics segment remained level with 1996. As a result of the above, the electronics segment reported an operating profit of $361,000 compared to an operating loss of $61,000 in 1996. For the nine months ended September 28, 1997, operating profit amounted to $857,000, a 9% decrease from last year. Instruments - ----------- The lower sales in the instruments segment during the quarter ended September 28, 1997 were mainly due to lower sales to both the colloidal and medical research markets. For the nine months ended, about 60% of the sales decrease was attributable to lower sales of custom test systems to the NDT/NDE markets and the remaining decrease to lower sales to both the colloidal and medical research markets. During the quarter and nine months ended September 28, 1997, the overall gross profit percentage increased 20% and 10%, respectively, over the 1996 comparable periods. The changes in the 1997 sales mix to a greater percentage of instruments sales versus custom test systems and operating efficiencies and cost reductions achieved by the consolidation of this segment into one location were the main reasons for the higher gross profit margins. During the quarter ended, total operating expenses remained level with 1996. For the nine months ended, total operating expenses decreased 31% from 1996 due mainly to lower selling and research and development costs. The selling expense decreases were due to lower personnel, travel and advertising expenses. Decreased personnel and operating supplies and materials were the primary reasons for the lower research and development expense. During the quarter ended September 28, 1997, the instruments segment reported a $57,000 (36%) increase in operating profit over 1996. For the nine months ended September 28, 1997, operating profit amounted to $179,000 compared to $83,000 in 1996. -11- PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (a) Exhibits: 11. Statement re Computation of Per Share Earnings. Filed herein. 27. Financial Data Schedule. Filed for electronic purposes only. (b) Reports on Form 8-K - None -12- 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. MATEC Corporation ------------------------------------ Date: November 10, 1997 By /s/ Ted Valpey, Jr. --------------------------------- Ted Valpey, Jr. Chairman of the Board and President Date: November 10, 1997 By /s/ Michael J. Kroll --------------------------------- Michael J. Kroll, Vice President and Treasurer -13- EX-11 2 EARNINGS PER SHARE MATEC Corporation and Subsidiaries Exhibit 11 Calculation of Earnings Per Share (amounts in thousands, except per share data) Three Months Ended 9/28/97 9/29/96(1) ------- ------- Net earnings (loss) from continuing operations .... $ 122 $ (77) Net earnings from discontinued operations ......... 64 125 ------- ------ Net earnings ...................................... $ 186 $ 48 ======= ====== Calculation of primary earnings per share: - ------------------------------------------ Weighted average common shares outstanding ....... 2,734 2,774 Increase from assumed exercise of stock options and investment of proceeds in treasury stock, based upon average market prices ................ 37 60 ------- ------ Average common stock and common equivalent shares outstanding (B) .......................... 2,771 2,834 ======= ====== Net earnings (loss) per common and common equivalent share (A): Continuing operations .......................... $ .05 $ (.03) Discontinued operations ........................ .02 .05 ------- ------ $ .07 $ .02 ======= ====== Calculation of fully diluted earnings per share: - ------------------------------------------------ Weighted average common shares outstanding ....... 2,734 2,774 Increase from assumed exercise of stock options and investment of proceeds in treasury stock, based upon the higher of average or quarter-end market prices ................................... 37 60 ------- ------ Average common stock and common equivalent shares used to calculate fully diluted earnings per share (B) ................................... 2,771 2,834 ======= ====== Net earnings (loss) per common and common equivalent share assuming full dilution (C): Continuing operations .......................... $ .05 $ (.03) Discontinued operations ........................ .02 .05 ------- ------ $ .07 $ .02 ======= ====== (1) Restated for discontinued operations. (A) Dilution from stock options is less than 3%, therefore primary earnings per share is based on the weighted average number of shares outstanding. (B) The effect of the outstanding warrants is excluded since they do not meet either test of paragraph 37 of APB Opinion 15. (C) Dilution is less than 3%, therefore the primary basis was used for per share calculations. -14- MATEC Corporation and Subsidiaries Exhibit 11 Calculation of Earnings Per Share (amounts in thousands, except per share data) Nine Months Ended 9/28/97 9/29/96(1) ------- ------- Net earnings (loss) from continuing operations .... $ 67 $ (26) Net earnings from discontinued operations ......... 141 467 ------- ------- Net earnings ...................................... $ 208 $ 441 ======= ======= Calculation of primary earnings per share: - ------------------------------------------ Weighted average common shares outstanding ....... 2,738 2,768 Increase from assumed exercise of stock options and investment of proceeds in treasury stock, based upon average market prices ................ 27 54 ------- ------- Average common stock and common equivalent shares outstanding (B) .......................... 2,765 2,822 ======= ======= Net earnings (loss) per common and common equivalent share (A): Continuing operations .......................... $ .03 $ (.01) Discontinued operations ........................ .05 .17 ------- ------- $ .08 $ .16 ======= ======= Calculation of fully diluted earnings per share: - ------------------------------------------------ Weighted average common shares outstanding ....... 2,738 2,768 Increase from assumed exercise of stock options and investment of proceeds in treasury stock, based upon the higher of average or quarter-end market prices ................................... 33 54 ------- ------- Average common stock and common equivalent shares used to calculate fully diluted earnings per share (B) ................................... 2,771 2,822 ======= ======= Net earnings (loss) per common and common equivalent share assuming full dilution (C): Continuing operations .......................... $ .03 $ (.01) Discontinued operations ........................ .05 .17 ------- ------- $ .08 $ .16 ======= ======= (1) Restated for discontinued operations. (A) Dilution from stock options is less than 3%, therefore primary earnings per share is based on the weighted average number of shares outstanding. (B) The effect of the outstanding warrants is excluded since they do not meet either test of paragraph 37 of APB Opinion No. 15. (C) Dilution is less than 3%, therefore the primary basis was used for per share calculations. -15- EX-27 3 FINANCIAL DATA SCHEDULE
5 1,000 9-MOS DEC-31-1997 SEP-28-1997 588 0 3,269 112 3,322 8,099 12,091 8,102 21,672 3,027 1,988 0 0 190 14,396 21,672 12,216 12,216 8,919 8,919 0 36 187 112 44 68 141 0 0 209 .08 .08
-----END PRIVACY-ENHANCED MESSAGE-----