-----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, EQ+Wh6GoS452kQBpppUbn9gdGlSFsIL6UNz2aO97kf8SzZvsnVcUd5mGSmZVQ1ER iqdY+3GdjoRQLJmvof0prQ== 0000898430-97-004447.txt : 19971024 0000898430-97-004447.hdr.sgml : 19971024 ACCESSION NUMBER: 0000898430-97-004447 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971023 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: SEC FILE NUMBER: 000-18490 FILM NUMBER: 97699711 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, 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 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, 1997: Class A 3,167,186 Class B 2,485,572 PART 1 - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS - ------ K-SWISS INC. CONSOLIDATED BALANCE SHEETS (Dollar amounts in thousands) ASSETS
September 30, December 31, 1997 1996 ------------- ------------ (Unaudited) CURRENT ASSETS Cash and cash equivalents $ 31,969 $ 34,314 Investment securities 9,619 - Accounts receivable, less allowance for doubtful accounts of $815 and $630 as of September 30, 1997 and December 31, 1996, respectively 21,444 14,702 Inventories 20,548 23,789 Prepaid expenses 5,727 15,674 Deferred taxes 1,839 2,058 -------- -------- Total current assets 91,146 90,537 PROPERTY, PLANT AND EQUIPMENT, net 4,180 3,910 OTHER ASSETS Intangible assets 4,778 5,005 Other 503 823 -------- -------- 5,281 5,828 -------- -------- $100,607 $100,275 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Bank lines of credit $ 612 $ 1,209 Current maturities of capital lease obligations and subordinated debentures 350 302 Trade accounts payable 3,357 3,239 Accrued liabilities 10,462 6,490 -------- -------- Total current liabilities 14,781 11,240 SUBORDINATED DEBENTURES 150 200 DEFERRED TAXES 9,706 9,266 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; 4,103,386 shares issued, 3,172,186 shares outstanding and 931,200 shares held in treasury at September 30, 1997 and 4,087,018 shares issued, 3,585,018 shares outstanding and 502,000 shares held in treasury at December 31, 1996 41 41 Class B-authorized 10,000,000 shares of $.01 par value; issued and outstanding 2,485,572 shares at September 30, 1997 and 2,495,572 shares at December 31, 1996 25 25 Additional paid-in capital 25,175 25,100 Treasury Stock (11,209) (5,221) Retained earnings 62,200 59,675 Foreign currency translation (262) (51) -------- ------- 75,970 79,569 -------- ------- $100,607 $100,275 ======== ========
The accompanying notes are an integral part of 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, ------------------- ------------------- 1997 1996 1997 1996 ----- ---- ---- ---- Revenues $92,449 $89,165 $32,835 $28,781 Cost of goods sold 57,699 59,917 19,417 19,718 ------- ------- ------- ------- Gross profit 34,750 29,248 13,418 9,063 Selling, general and administrative expenses 30,767 26,370 10,593 9,103 ------- ------- ------- ------- Operating profit (loss) 3,983 2,878 2,825 (40) Interest income, net 1,277 1,095 463 519 ------- ------- ------- ------- Earnings before income taxes 5,260 3,973 3,288 479 Income tax expense 2,386 2,296 1,574 198 ------- ------- ------- ------- NET EARNINGS $ 2,874 $ 1,677 $ 1,714 $ 281 ======= ======= ======= ======= Earnings per share $ .48 $ .25 $ .29 $ .04 ======= ======= ======= ======= Weighted average common and common equivalent shares outstanding 5,987 6,598 5,901 6,610
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, -------------------- 1997 1996 --------- -------- Net cash provided by operating activities $ 15,095 $ 7,793 Cash flows from investing activities: Cash paid for acquisition of certain assets and rights of Robey Sportswear - (436) Purchase of investment securities (9,619) - Purchase of property, plant and equipment (775) (313) Proceeds from disposal of property, plant and equipment 8 - -------- ------- Net cash used in investing activities (10,386) (749) Cash flows from financing activities: Net (repayments) borrowings under the bank lines of credit and capital leases (578) 1,629 Purchase of treasury stock (5,988) (1,025) Proceeds from stock options exercised 63 - Income tax benefit of options exercised 12 - Payment of dividends (349) (394) -------- ------- Net cash (used in) provided by financing activities (6,840) 210 Effect of exchange rate changes on cash (214) 92 -------- ------- Net (decrease) increase in cash and cash equivalents (2,345) 7,346 Cash and cash equivalents at beginning of period 34,314 31,431 -------- ------- Cash and cash equivalents at end of period $ 31,969 $38,777 ======== =======
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, 1997 and the results of its operations and its cash flows for the nine and three months ended September 30, 1997 and 1996. The results of operations and cash flows for the nine and three months ended September 30, 1997 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, 1996. 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 under examination by the IRS which has issued Notices of Proposed Adjustment (NOPA's) for those years. In addition, the IRS has reopened its examination of the 1991 and 1992 fiscal years. The IRS has not yet issued an examination report covering the 1991 through 1994 fiscal years, but is expected to do so. Based on the NOPA's for the 1993 and 1994 fiscal years, it is expected that the IRS will issue an examination report proposing adjustments to the Company's income of approximately $10,100,000 for fiscal years 1993 and 1994 combined. It is not clear whether the IRS intends to make any 1991 or 1992 adjustments in addition to, or in lieu of, the proposed adjustments already made in the prior examination report. 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 first proposed assessments for tax years 1991 and 1992 or substantially all of the proposed adjustments 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 aforementioned IRS examinations should not have a material adverse impact on the Company's financial position and results of operations. 3. In February 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 128 (SFAS No. 128), Earnings Per Share. SFAS No. 128 establishes standards of computing and presenting earnings per share (EPS) and applies to entities with publicly held common stock. SFAS No. 128 simplifies the standards for computing earnings per share previously found in APB Opinion No. 15 and makes them comparable to international EPS standards. It replaces the presentation of primary EPS with a presentation of basic EPS. It also requires dual presentation of basic and diluted EPS on the face of the statement of earnings for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. SFAS No. 128 is effective for financial statements issued for periods ending after December 15, 1997; earlier application is not permitted. The pro forma basic and diluted EPS calculated under SFAS No. 128 would approximate primary earnings per share for the Company for the periods ended September 30, 1997 and 1996. 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, -------------------- -------------------- 1997 1996 1997 1996 ------ ------ ------ ------ Revenues 100.0% 100.0% 100.0% 100.0% Cost of goods sold 62.4 67.2 59.1 68.5 Gross profit 37.6 32.8 40.9 31.5 Selling, general and administrative expenses 33.3 29.6 32.3 31.6 Interest income, net 1.4 1.3 1.4 1.8 Earnings before income taxes 5.7 4.5 10.0 1.7 Income tax expense 2.6 2.6 4.8 0.7 Net earnings 3.1 1.9 5.2 1.0
Revenues increased to $32,835,000 for the quarter ended September 30, 1997 from $28,781,000 for the quarter ended September 30, 1996, an increase of $4,054,000 or 14.1%. Revenues increased to $92,449,000 for the nine months ended September 30, 1997 from $89,165,000 for the nine months ended September 30, 1996, an increase of $3,284,000 or 3.7%. These increases for the quarter and nine months were the result of higher average wholesale prices per pair, partially offset by decreases in the volume of footwear sold. The average wholesale price per pair increased to $24.47 and $22.44 for the quarter and nine months ended September 30, 1997 from $20.05 and $20.77 for the quarter and nine months ended September 30, 1996, increases of 22.0% and 8.0% respectively. The increases in the average wholesale prices per pair were primarily attributable to changes in the product and geographic mix of sales. The volume of footwear sold decreased to 1,315,000 pair and 3,926,000 pair for the quarter and nine months ended September 30, 1997 from 1,388,000 pair and 3,996,000 pair for the quarter and nine months ended September 30, 1996. The decrease in the volume of footwear sold for the quarter ended September 30, 1997 was primarily due to a decrease in the lower volume tennis/court category of shoes of 43.3% partially offset by an increase in the higher volume Classic category of 12.9%. Domestic revenues increased 24.2% to $27,148,000 for the quarter ended September 30, 1997 from $21,854,000 for the quarter ended September 30, 1996. Domestic revenues increased 13.4% to $72,635,000 for the nine months ended September 30, 1997 from $64,060,000 for the nine months ended September 30, 1996. International revenues decreased 17.9% to $5,687,000 for the quarter ended September 30, 1997 from $6,927,000 for the quarter ended September 30, 1996. International revenues decreased 21.1% to $19,814,000 for the nine months ended September 30, 1997 from $25,105,000 for the nine months ended September 30, 1996. International revenues, as a percentage of total revenues, decreased to 17.3% for the quarter ended September 30, 1997 as compared with 24.1% for the quarter ended September 30, 1996. International revenues, as a percentage of total revenues, decreased to 21.4% for the nine months ended September 30, 1997 as compared with 28.2% for the nine months ended September 30, 1996. Gross profit margins, as a percentage of revenues, increased to 40.9% for the quarter ended September 30, 1997, from 31.5% for the quarter ended September 30, 1996. Gross profit margins, as a percentage of revenues, increased to 37.6% from 32.8% for the nine months ended September 30, 1997 and 1996, respectively. Gross profit margins increased primarily due to changes in the geographic and product mix of sales, including a decrease in close-out sales. 6 Selling, general and administrative expenses increased to $10,593,000 (32.3% of revenues) for the quarter ended September 30, 1997, from $9,103,000 (31.6% of revenues) for the quarter ended September 30, 1996, an increase of $1,490,000 or 16.4%. Selling, general and administrative expenses increased to $30,767,000 (33.3% of revenues) for the nine months ended September 30, 1997, from $26,370,000 (29.6% of revenues) for the nine months ended September 30, 1996, an increase of $4,397,000 or 16.7%. The increase in the amounts, as well as the percentage of sales, for the quarter and nine months ended September 30, 1997 was primarily the result of an increase in direct advertisement and promotion activities, as well as an increase in the bonus accrual due to an employee incentive program. Net interest income was $463,000 (1.4% of revenues) and $1,277,000 (1.4% of revenues) for the quarter and nine months ended September 30, 1997, respectively, compared to $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, a decrease of $56,000 or 10.8% for the quarter ended September 30, 1997 and an increase of $182,000 or 16.6% for the nine months ended September 30, 1997. For the quarter ended September 30, 1997 as compared to the quarter ended September 30, 1996, the decrease in net interest income was the result of lower average balances partially offset by higher average interest rates on commercial paper. For the nine months ended September 30, 1997 as compared to the nine months ended September 30, 1996, the increase in net interest income was the result of higher average interest rates partially offset by lower average balances on commercial paper. The Company's effective tax rate decreased to 45.4% of earnings before income tax from 57.8% for the nine months ended September 30, 1997 and 1996, respectively, due primarily to recording income taxes relating to a state income tax audit during the nine months ended September 30, 1996. Net earnings increased 510.0% to $1,714,000 for the quarter ended September 30, 1997 from $281,000 for the quarter ended September 30, 1996. Net earnings increased 71.4% to $2,874,000 for the nine months ended September 30, 1997 from $1,677,000 for the nine months ended September 30, 1996. Net earnings for the quarter and nine months ended September 30, 1997 included net losses of the Company's European operations of $262,000 and $1,536,000, respectively. 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. At September 30, 1997 and 1996, domestic footwear futures orders with start ship dates from October 1997 and 1996 through March 1998 and 1997 were approximately $46,955,000 and $27,325,000, respectively. At September 30, 1997 and 1996, international footwear futures orders with start ship dates from October 1997 and 1996 through March 1998 and 1997 were approximately $8,716,000 and $7,819,000, 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 $15,095,000 and $7,793,000 from its operating activities during the nine months ended September 30, 1997 and 1996, respectively. Cash provided by operating activities for the nine months ended September 30, 1997 as compared to the nine months ended September 30, 1996 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 an increase in net earnings. The Company had a net outflow of cash from its investing activities for the nine months ended September 30, 1997 due to the purchase of investment securities and to the purchase of property, plant and equipment. 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 outflow of cash from its financing activities for the nine months ended September 30, 1997 primarily due to the purchase of treasury stock and repayments under the bank lines of credit. In November 1996, the Company extended its share repurchase program from December 1996 to December 1997. Under this program 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. At that time, the authorization was increased by approximately $5,200,000 from $4,800,000 (the remaining amount of the previous $10,000,000 authorization) to $10,000,000. 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 inception under its share repurchase program, the Company purchased an aggregate of 936,200 shares of Class A Common Stock at an aggregate cost totaling approximately $11,294,000. During 1997 and 1998, the Company will need an aggregate of approximately $4,900,000 for the construction of its new headquarters facility. No other material capital commitments exist at September 30, 1997. 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 currently anticipated sources of capital are sufficient to sustain its anticipated capital needs for the remainder of 1997. In March 1997, the Company contracted to sell its Pacoima, California property and opened escrow regarding such sale. The escrow was expected to close in the second quarter of 1997 but the purchaser was unable to close escrow. A new escrow has been entered into with a different party and such escrow is expected to close in the fourth quarter of 1997. The Company's working capital decreased $2,932,000 to $76,365,000 at September 30, 1997 from $79,297,000 at December 31, 1996. 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- Third 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 1997; however, the Company did file a Current Report on Form 8- K on October 15, 1997 relating to the issuance by the Company of a press release regarding the filing by the Company of a Form S-3 Registration Statement covering shares of the Company's Class A Common Stock held by one of its principal stockholders. 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, 1997 By:/S/ GEORGE POWLICK ______________________________________ George Powlick, Vice President Finance and Chief Financial Officer 10 EXHIBIT INDEX -------------- Exhibit Page - ------- ---- 10 Third Amendment to Credit Agreement 12 11 Computation of Earnings Per Share 14 27 Financial Data Schedule 11 EX-10 2 THIRD AMENDMENT TO CREDIT AGREEMENT EXHIBIT 10 THIRD AMENDMENT TO CREDIT AGREEMENT This Third Amendment to Credit Agreement (this "Amendment") is entered into as of July 29, 1997, 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 amendments dated as of June 29, 1995 and August 12, 1996 (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 "July 1, 1998" is amended to read "July 1, 1999." (b) In the definition of "Offshore Rate Interest Period" in Paragraph 1.1, the phrase "twelve (12)" is amended to read "six (6)." (c) Paragraph 8.6 is amended and restated in its entirety 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 Two Million Seven Hundred Eighty Two Thousand Dollars ($62,782,000) 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, 1996; (d) 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 - Finance 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, ------------------- ------------------- 1997 1996 1997 1996 ------ ------ ------ ------ PRIMARY Earnings applicable to common stock $2,874 $1,677 $1,714 $ 281 ====== ====== ====== ====== Weighted average shares: Average shares outstanding 5,915 6,574 5,741 6,560 Net effect of warrants and dilutive stock options based on application of treasury stock method using average market price 72 24 160 50 ------ ------ ------ ------ Total average shares 5,987 6,598 5,901 6,610 ====== ====== ====== ====== Earnings per share $ .48 $ .25 $ .29 $ .04 ====== ====== ====== ======
FULLY DILUTED Fully diluted earnings per share are considered equal to primary earnings per share due to immaterial dilution. EX-27 4 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM CONSOLIDATED BALANCE SHEETS AND CONSOLIDATED STATEMENTS OF EARNINGS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 9-MOS DEC-31-1996 JAN-01-1997 SEP-30-1997 31,969 9,619 22,259 815 20,548 91,146 4,180 0 100,607 14,781 0 0 0 66 75,904 100,607 92,449 92,449 57,699 30,767 0 0 1,277 5,260 2,386 2,874 0 0 0 2,874 0.480 0.480 INTEREST INCOME NET OF INTEREST EXPENSE
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