-----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, HPWvgvpJxLuejW7Zv8faaSO5E93hTEtL4+dIKn57iHhrW7j3rl45dR67YAfyDObX Ya41DQHgn1Tm2PwNOjC9mA== 0000898430-96-004918.txt : 19961027 0000898430-96-004918.hdr.sgml : 19961027 ACCESSION NUMBER: 0000898430-96-004918 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961024 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: K SWISS INC CENTRAL INDEX KEY: 0000862480 STANDARD INDUSTRIAL CLASSIFICATION: FOOTWEAR, (NO RUBBER) [3140] IRS NUMBER: 954265988 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-18490 FILM NUMBER: 96647451 BUSINESS ADDRESS: STREET 1: 20664 BAHAMA ST CITY: CATSWORTH STATE: CA ZIP: 91311 BUSINESS PHONE: 8189983388 MAIL ADDRESS: STREET 1: 20664 BAHAMA ST CITY: CATSWORTH STATE: CA ZIP: 91311 10-Q 1 FORM 10-Q 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 September 30, 1996 ----------------------------- 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 0-18490 ------- K-SWISS INC. - ------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 95-4265988 - ------------------------------------------------------------------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 20664 Bahama Street, Chatsworth, CA 91311 - ------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) 818-998-3388 - ------------------------------------------------------------------------------- (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 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: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Shares of common stock outstanding at October 21, 1996: Class A 3,583,851 Class B 2,495,572 PART 1 - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS - ------ K-SWISS INC. CONSOLIDATED BALANCE SHEETS (Dollar amounts in thousands) ASSETS
September 30, December 31, 1996 1995 ------------- ------------ (Unaudited) CURRENT ASSETS Cash and cash equivalents $ 38,777 $ 31,431 Accounts receivable, less allowance for doubtful accounts of $660 and $873 as of September 30, 1996 and December 31, 1995, respectively 20,645 14,764 Inventories 23,372 41,203 Prepaid expenses 8,606 1,197 Deferred taxes 4,351 4,191 -------- -------- Total current assets 95,751 92,786 PROPERTY, PLANT AND EQUIPMENT, net 3,360 3,570 OTHER ASSETS Intangible assets 5,070 5,096 Other 835 926 -------- -------- 5,905 6,022 -------- -------- $105,016 $102,378 ======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES Bank lines of credit $ 2,051 $ 371 Current maturities of capital lease obligations and subordinated debentures 252 43 Trade accounts payable 1,998 4,529 Accrued liabilities 7,113 4,660 -------- -------- Total current liabilities 11,414 9,603 CAPITAL LEASE OBLIGATIONS 1 6 SUBORDINATED DEBENTURES 250 500 DEFERRED TAXES 8,542 8,200 STOCKHOLDERS' EQUITY Preferred Stock-authorized 2,000,000 shares of $.01 par value; none issued and outstanding - - Common Stock: Class A-authorized 18,000,000 shares of $.01 par value; 4,085,851 shares issued, 3,985,851 shares outstanding and 100,000 shares held in treasury at September 30, 1996, and 4,085,851 shares issued and outstanding at December 31, 1995 41 41 Class B-authorized 10,000,000 shares of $.01 par value; issued and outstanding 2,495,572 shares at September 30, 1996 and December 31, 1995 25 25 Additional paid-in capital 25,088 25,088 Treasury Stock (1,025) - Retained earnings 60,743 59,460 Foreign currency translation (63) (545) -------- -------- 84,809 84,069 -------- -------- $105,016 $102,378 ======== ========
The accompanying notes are an integral part of these statements. 2 K-SWISS INC. CONSOLIDATED STATEMENTS OF EARNINGS (Amounts in thousands, except per share amounts) (Unaudited)
NINE MONTHS THREE MONTHS ENDED SEPTEMBER 30, ENDED SEPTEMBER 30, ------------------- ------------------- 1996 1995 1996 1995 ------- -------- -------- ------- Revenues $89,165 $101,853 $28,781 $29,361 Cost of goods sold 59,917 63,478 19,718 19,527 ------- -------- ------- ------- Gross profit 29,248 38,375 9,063 9,834 Selling, general and administrative expenses 26,370 27,960 9,103 8,396 ------- -------- ------- ------- Operating profit (loss) 2,878 10,415 (40) 1,438 Interest income, net 1,095 494 519 254 ------- -------- ------- ------- Earnings before income taxes 3,973 10,909 479 1,692 Income tax expense 2,296 4,359 198 676 ------- -------- ------- ------- NET EARNINGS $ 1,677 $ 6,550 $ 281 $ 1,016 ======= ======== ======= ======= Earnings per share $.25 $.98 $.04 $.15 ======= ======== ======= ======= Weighted average common and common equivalent shares outstanding 6,598 6,656 6,610 6,625
The accompanying notes are an integral part of these statements. 3 K-SWISS INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) (Unaudited)
NINE MONTHS ENDED SEPTEMBER 30, ------------------- 1996 1995 -------- -------- Net cash provided by operating activities $ 7,793 $14,708 Cash flows from investing activities: Cash paid for acquisition of certain assets and rights of Robey Sportswear (436) - Proceeds from maturity of investment securities - 5,102 Purchase of property, plant and equipment (313) (254) ------- ------- Net cash (used in) provided by investing activities (749) 4,848 Cash flows from financing activities: Net borrowings (repayments) under the bank lines of credit and capital leases 1,629 (2,739) Proceeds from stock options exercised - 55 Income tax benefit of options exercised - 9 Purchase of treasury stock (1,025) - Payment of dividends (394) (396) ------- ------- Net cash provided by (used in) financing activities 210 (3,071) Effect of exchange rate changes on cash 92 (69) ------- ------- Net increase in cash and cash equivalents 7,346 16,416 Cash and cash equivalents at beginning of period 31,431 10,717 ------- ------- Cash and cash equivalents at end of period $38,777 $27,133 ======= =======
The accompanying notes are an integral part of these statements. 4 K-SWISS INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the consolidated financial position of K-Swiss Inc. (the "Company") as of September 30, 1996 and the results of its operations and its cash flows for the nine and three months ended September 30, 1996 and 1995. The results of operations and cash flows for the nine and three months ended September 30, 1996 are not necessarily indicative of the results to be expected for any other interim period or the full year. These consolidated financial statements should be read in combination with the audited consolidated financial statements and notes thereto for the year ended December 31, 1995. 2. The federal income tax returns of the Company for the years ended 1990, 1991 and 1992 are under examination by the Internal Revenue Service (IRS). In December 1995, the IRS issued its report proposing additional taxes of approximately $3,850,000 plus penalties and interest. The Company is appealing the IRS assessment. Also, the federal income tax returns of the Company for the years ended 1993 and 1994 are currently in preliminary stages of examination by the IRS. Although no assurance can be given regarding the outcome of such examinations, the Company believes that any taxes which might become payable as a result of the proposed assessments for tax years 1990, 1991 and 1992 as well as any reasonably foreseeable assessments for tax years 1993 and 1994 would not result in additional expense recognized in the financial statements other than interest and penalties, if any, as the Company has recorded deferred income taxes on the untaxed portion of unremitted earnings of a foreign subsidiary. Therefore, management believes that resolution of the IRS examinations should not have a material adverse impact on the Company's financial position and results of operations. 3. During the period from October 1, 1996 through October 21, 1996, in accordance with its previously announced share repurchase program, the Company purchased an additional 402,000 shares of its common stock for approximately $4,196,000. 5 ITEM 2. - ------ MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Results of Operations The following table sets forth, for the periods indicated, the percentage of certain items in the consolidated statements of earnings relative to revenues.
NINE MONTHS THREE MONTHS ENDED SEPTEMBER 30, ENDED SEPTEMBER 30, -------------------- -------------------- 1996 1995 1996 1995 ------ ----- ----- ----- Revenues 100.0% 100.0% 100.0% 100.0% Cost of goods sold 67.2 62.3 68.5 66.5 Gross profit 32.8 37.7 31.5 33.5 Selling, general and administrative expenses 29.6 27.5 31.6 28.6 Interest income, net 1.3 0.5 1.8 0.9 Earnings before income taxes 4.5 10.7 1.7 5.8 Income tax expense 2.6 4.3 0.7 2.3 Net earnings 1.9 6.4 1.0 3.5
Revenues decreased to $28,781,000 for the quarter ended September 30, 1996 from $29,361,000 for the quarter ended September 30, 1995, a decrease of $580,000 or 2.0%. Revenues decreased to $89,165,000 for the nine months ended September 30, 1996 from $101,853,000 for the nine months ended September 30, 1995, a decrease of $12,688,000 or 12.5%. These decreases resulted from a decrease in the volume of footwear sold to 3,996,000 pair for the nine months ended September 30, 1996 from 4,605,000 pair for the nine months ended September 30, 1995 and a decrease in the average wholesale price per pair. The volume of footwear sold increased to 1,388,000 pair for the quarter ended September 30, 1996 from 1,303,000 pair for the quarter ended September 30, 1995. The increase in the volume of footwear sold for the quarter ended September 30, 1996 was primarily the result of increased sales of the Classic, tennis/court and children's categories of shoes of 13.8%, 13.0% and 12.5%, respectively, partially offset by a 58.2% decrease in the outdoor category of shoes, which has been discontinued. The average wholesale price per pair decreased by 7.3% to $20.05 for the quarter ended September 30, 1996 from $21.64 for the quarter ended September 30, 1995. The average wholesale price per pair was $20.77 and $21.21 for the nine months ended September 30, 1996 and 1995, respectively. The decrease in the average wholesale price per pair is primarily attributable to the increase in the volume of canvas product sold which carries relatively lower wholesale prices per pair. Domestic revenues increased 5.4% to $21,854,000 for the quarter ended September 30, 1996 from $20,725,000 for the quarter ended September 30, 1995. Domestic revenues decreased 16.9% to $64,060,000 for the nine months ended September 30, 1996 from $77,045,000 for the nine months ended September 30, 1995. International revenues decreased 19.8% to $6,927,000 for the quarter ended September 30, 1996 from $8,636,000 for the quarter ended September 30, 1995. International revenues increased 1.2% to $25,105,000 for the nine months ended September 30, 1996 from $24,808,000 for the nine months ended September 30, 1995. International revenues, as a percentage of total revenues, decreased to 24.1% for the quarter ended September 30, 1996 as compared with 29.4% for the quarter ended September 30, 1995. International revenues, as a percentage of total revenues, increased to 28.2% for the nine months ended September 30, 1996 as compared with 24.4% for the nine months ended September 30, 1995. International revenues increased for the nine months ended September 30, 1996 due primarily to the sales of apparel made by the Company's newly acquired Netherlands' subsidiary. Gross profit margins, as a percentage of revenues, decreased to 31.5% for the quarter ended September 30, 1996, from 33.5% for the quarter ended September 30, 1995. Gross profit margins, as a percentage of revenues, decreased to 32.8% from 37.7% for the nine months ended September 30, 1996 and 1995, respectively. Gross profit margins decreased primarily due to changes in the geographic and product mix of sales, including an increase in close-out sales. 6 Selling, general and administrative expenses increased to $9,103,000 (31.6% of revenues) for the quarter ended September 30, 1996, from $8,396,000 (28.6% of revenues) for the quarter ended September 30, 1995, an increase of $707,000 or 8.4%. Selling, general and administrative expenses decreased to $26,370,000 (29.6% of revenues) for the nine months ended September 30, 1996, from $27,960,000 (27.5% of revenues) for the nine months ended September 30, 1995, a decrease of $1,590,000 or 5.7%. The increase in the amounts, as well as the percentage of sales, for the quarter ended September 30, 1996 was primarily the result of an increase in the bonus accrual due to the implementation of an incentive program, as well as an increase in direct advertisement, promotion activities, and product development. The decrease in the amounts for the nine months ended September 30, 1996 was primarily the result of increased bad debt expense recorded during the nine months ended September 30, 1995, due to the unexpected bankruptcies of two of the Company's larger customers. In addition, reductions were made for potential contributions to the employee's profit sharing plan for the nine months ended September 30, 1996. In addition, for the nine months ended September 30, 1996, the increase in selling, general and administrative expenses, as a percentage of sales, was primarily the result of an increase in direct advertisement, promotion activities and product development. Net interest income was $519,000 (1.8% of revenues) and $1,095,000 (1.3% of revenues) for the quarter and nine months ended September 30, 1996, respectively, compared to $254,000 (0.9% of revenues) and $494,000 (0.5% of revenues) for the quarter and nine months ended September 30, 1995, respectively, an increase of $265,000 and $601,000 or 104.3% and 121.7%, respectively. For the quarter and nine months ended September 30, 1996 as compared to the quarter and nine months ended September 30, 1995, the increase in net interest income was the result of higher average balances, partially offset by lower average rates, on commercial paper investments. This increase was partially offset by interest expense recorded relating to taxes assessed as a result of a state income tax audit, for the nine months ended September 30, 1996. The Company's effective tax rate increased to 57.8% of earnings before income tax from 40.0% for the nine months ended September 30, 1996 and 1995, respectively, due primarily to recording income taxes relating to a state income tax audit. Net earnings decreased 72.3% to $281,000 for the quarter ended September 30, 1996 from $1,016,000 for the quarter ended September 30, 1995. Net earnings decreased 74.4% to $1,677,000 for the nine months ended September 30, 1996 from $6,550,000 for the nine months ended September 30, 1995. Net earnings for the quarter and nine months ended September 30, 1996 included net losses of the Company's European operations of $593,000 and $1,360,000, respectively. Net earnings for the quarter and nine months ended September 30, 1995 included net losses incurred by the Company's Canadian operations of $85,000 and $410,000, respectively, and for the Company's European operations net profits for the quarter ended September 30, 1995 of $148,000 and net losses for the nine months ended September 30, 1995 of $43,000. In January 1996, K.Swiss Canada adopted a voluntary liquidation program and an independent distributor was appointed to serve the Canadian market. At September 30, 1996 and 1995, domestic footwear futures orders with start ship dates from October 1996 and 1995 through March 1997 and 1996 were approximately $27,325,000 and $26,972,000, respectively. At September 30, 1996 and 1995, international footwear futures orders with start ship dates from October 1996 and 1995 through March 1997 and 1996 were approximately $7,819,000 and $11,840,000, respectively. "Backlog", as of any date, represents orders scheduled to be shipped within the next six months. Backlog does not include orders scheduled to be shipped on or prior to the date of determination of backlog. The orders are not necessarily indicative of revenues for subsequent periods because: (1) the mix of "futures" and "at-once" orders can vary significantly from quarter to quarter and year to year and (2) the rate of customer order cancellations can also vary from quarter to quarter and year to year. 7 Liquidity and Capital Resources The Company generated cash of $7,793,000 and $14,708,000 from its operating activities during the nine months ended September 30, 1996 and 1995, respectively. Cash provided by operating activities for the nine months ended September 30, 1996 as compared to the nine months ended September 30, 1995 varied primarily due to changes in accounts receivable, inventories, prepaid expenses (principally a prepayment to secure inventory purchases) and other assets, and accounts payable and accrued liabilities as well as a decrease in net earnings. The Company had a net outflow of cash from its investing activities for the nine months ended September 30, 1996 due primarily to the purchase of certain assets and rights of a small apparel brand where products are primarily sold in the Netherlands. The Company had a net inflow of cash from its investing activities for the nine months ended September 30, 1995 due to the maturity of investment securities. The Company had a net inflow of cash from its financing activities of $210,000 for the nine months ended September 30, 1996 due primarily to borrowings under its bank lines of credit, partially offset by a purchase of treasury stock. Depending on the Company's future growth rate, funds may be required by operating activities. With continued use of its revolving credit facility and internally generated funds, the company believes its present and anticipated sources of capital are sufficient to sustain its capital needs for the remainder of 1996. In November 1995, the Company announced a share repurchase program whereby the Company may purchase, from time to time as market conditions warrant, up to $10,000,000 of its Class A Common Stock on the open market through December 1996. The Company adopted this program because it believes repurchasing its shares can be a good use of excess cash depending on the Company's array of alternatives. From the period August 14, 1996 through October 21, 1996 (the date before the filing of this Form 10-Q), the Company made purchases under this program of 502,000 shares at an aggregate cost totaling approximately $5,221,000. The Company's working capital increased $1,154,000 to $84,337,000 at September 30,1996 from $83,183,000 at December 31, 1995. 8 PART II - OTHER INFORMATION ITEM 1: Legal Proceedings. ----------------- None. ITEM 2: Changes in Securities. --------------------- None. ITEM 3: Defaults Upon Senior Securities. ------------------------------- None. ITEM 4: Submission of Matters to a Vote of Security Holders. --------------------------------------------------- None. ITEM 5: Other Information. ----------------- None. ITEM 6: Exhibits -------- (a) Exhibits 10- Second Amendment to Credit Agreement 11- Computation of Earnings Per Share 27- Financial Data Schedule (b) Reports on Form 8-K There were no reports filed on Form 8-K during the third quarter of 1996. 9 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. K-Swiss Inc. Date: October 22, 1996 By: /s/George Powlick ---------------------------------- George Powlick, Vice President Finance and Chief Financial Officer 10 EXHIBIT INDEX -------------- Exhibit Page - ------- ---- 10 Second Amendment to Credit Agreement 12 11 Computation of Earnings Per Share 14 27 Financial Data Schedule 11 EX-10 2 SECOND AMENDMENT TO CREDIT AGREEMENT EXHIBIT 10 SECOND AMENDMENT TO CREDIT AGREEMENT This Second Amendment to Credit Agreement (this "Amendment") is entered into as of August 12 , 1996, between Bank of America National Trust and ------------ Savings Association ("Bank") and K-Swiss, Inc. ("Borrower"), with reference to the following: Recitals -------- A. Bank and Borrower are parties to that certain Credit Agreement dated as of March 25, 1994, as modified by an amendment dated as of June 29, 1995 (as amended, the "Credit Agreement"). B. Bank and Borrower now desire to further amend the Credit Agreement on the terms and conditions set forth below. Agreement --------- NOW, THEREFORE, the parties hereto agree as follows: 1. Definitions. Capitalized terms not otherwise ----------- defined in this Amendment shall have the meanings ascribed to them in the Credit Agreement. 2. Amendments. The Credit Agreement shall be ---------- amended as follows: (a) In the definition of "Availability Period" in Paragraph 1.1, the date "May 1, 1997" is amended to read "July 1, 1998." (b) In the definition of "Credit Limit" in Paragraph 1.1, the amount "Fifty Million Dollars ($50,000,000)" is amended to read "Thirty Million Dollars ($30,000,000)". (c) Subparagraph 2.4(d) is amended in full to read as follows: "(d) Borrower shall pay Bank negotiation fees of the greater of one quarter percent(0.25%) of the amount of each drawing or Ninety Dollars ($90), and other fees at the times and in the amounts Bank advises Borrower from time to time as being generally applicable to commercial letters of credit issued by Bank, including without limitation amendment, discrepancy, and cancellation fees." (d) Paragraph 3.1 is amended in full to read as follows: "3.1 Unused Commitment Fee (Advances). -------------------------------- Intentionally omitted;" (e) Paragraph 8.6 is amended in full to read as follows: "8.6 Effective Tangible Net Worth. Maintain at --------------------------------- all times on a consolidated basis effective Tangible Net Worth plus Subordinated Debt of at least Sixty Seven Million Two Hundred Thirty Four Thousand Dollars ($67,234,000) plus the sum of seventy-five percent (75%) of net income after income taxes (without subtracting losses) earned in each fiscal year commencing after December 31, 1995; 12 (f) Paragraph 8.9 is amended to add the following sentence: "For purposes of the foregoing calculation, the total of all advances outstanding at any one time under the Revolving Facility shall be a current liability." (g) Paragraph 8.10 is amended in full to read as follows: "8.10 Maximum Debt Requirement. Repay any advances in ------------------------ full, and not to draw any additional advances on the Revolving Facility, for a period of at least thirty (30) consecutive calendar days during the period from the date of this Agreement through July 1, 1997, and during each subsequent twelve-month period during the Availability Period. For purposes of this paragraph, "advances" does not include undrawn amounts of outstanding letters of credit;" (h) Except as hereby amended, all of the terms and conditions of the Credit Agreement shall remain in full force and effect. 3. Representations and Warranties. Borrower represents and ------------------------------ warrants to Bank that: (a) no Event of Default has occurred and is continuing under the Credit Agreement, (b) the representations and warranties in the Credit Agreement are true as of the date of this Amendment, (c) this Amendment is within Borrower's powers, has been duly authorized, and does not conflict with Borrower's organizational papers,and (d) this Amendment does not conflict with any law, agreement, or obligation by which Borrower is bound. IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first above written. BANK OF AMERICA NATIONAL TRUST K-SWISS, INC. AND SAVINGS ASSOCIATION By: /s/ Richard J. Pankow By: /s/ George Powlick -------------------------- --------------------- Richard J. Pankow George Powlick Vice President Vice President 13 EX-11 3 COMPUTATION OF EARNINGS PER SHARE EXHIBIT 11 COMPUTATION OF EARNINGS PER SHARE (Amounts in thousands, except per share amounts)
NINE MONTHS THREE MONTHS ENDED SEPTEMBER 30, ENDED SEPTEMBER 30, ------------------- ------------------- 1996 1995 1996 1995 ----- ----- ----- ----- PRIMARY Earnings applicable to common stock $1,677 $6,550 $ 281 $1,016 ===== ===== ===== ===== Weighted average shares: Average shares outstanding 6,574 6,577 6,560 6,578 Net effect of warrants and dilutive stock options based on application of treasury stock method using average market price 24 79 50 47 ----- ----- ----- ----- Total average shares 6,598 6,656 6,610 6,625 ===== ===== ===== ===== Earnings per share $ .25 $ .98 $ .04 $ .15 ===== ===== ===== =====
FULLY DILUTED Fully diluted earnings per share are considered equal to primary earnings per share due to immaterial dilution. 14 EX-27 4 FINANCIAL DATA SCHEDULE
5 This schedule contains summary financial information extracted from Consolidated Balance Sheets and Consolidated Statements of Operations and is qualified in its entirety by reference to such financial statements. 1,000 9-MOS DEC-31-1995 JAN-01-1996 SEP-30-1996 38,777 0 21,305 (660) 23,372 95,751 3,360 0 105,016 11,414 0 0 0 66 84,743 105,016 89,165 89,165 59,917 26,370 0 0 (1,095) 3,973 2,296 1,677 0 0 0 1,677 .25 .25 Interest Income net of Interest Expense
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