-----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, ETbNM0AZKwE1s4uV1WuUwak7v/OrIZL/5cnLR8G9/sMhVOvqQcgcUmgvqgJHiE0b 9fzDdosAxS1lMaNtV3YGug== 0000864906-98-000001.txt : 19980218 0000864906-98-000001.hdr.sgml : 19980218 ACCESSION NUMBER: 0000864906-98-000001 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980217 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: LUNAR CORP CENTRAL INDEX KEY: 0000864906 STANDARD INDUSTRIAL CLASSIFICATION: ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845] IRS NUMBER: 391200501 STATE OF INCORPORATION: WI FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-18643 FILM NUMBER: 98542810 BUSINESS ADDRESS: STREET 1: 313 W BELTLINE HIGHWAY CITY: MADISON STATE: WI ZIP: 53713 BUSINESS PHONE: 6082742663 MAIL ADDRESS: STREET 1: 313 WEST BELTLINE HIGHWAY CITY: MADISON STATE: WI ZIP: 53713 10-Q 1 QUARTERLY REPORT FOR QUARTER ENDING 12/31/97 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 quarterly period ended December 31, 1997 OR / / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 0-18643 LUNAR CORPORATION (Exact name of registrant as specified in its charter) Wisconsin 3845 39-1200501 (State of (Primary Standard Industry (IRS Employer Incorporation) Classification Code Number) Identification No.) 313 West Beltline Highway Madison, Wisconsin 53713 608-274-2663 (Address, including zip code, and telephone number, including area code, of Registrant's principal executive offices) 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 January 31, 1998, 8,782,685 shares of the registrant's Common Stock, $0.01 par value, were outstanding. LUNAR CORPORATION AND SUBSIDIARIES FORM 10-Q For the quarterly period ended December 31, 1997 TABLE OF CONTENTS PART I - FINANCIAL INFORMATION Page Item 1. Financial statements Consolidated Balance Sheets December 31, 1997, and June 30, 1997 3 Consolidated Statements of Income Three and Six Months Ended December 31, 1997 and 1996 5 Consolidated Statements of Cash Flows Six Months Ended December 31, 1997 and 1996 6 Notes to Consolidated Financial Statements 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 9 Item 3. Quantitative and Qualitative Disclosure About Market Risk 11 PART II - OTHER INFORMATION Item 1. Legal Proceedings 12 Item 2. Changes in Securities 12 Item 3. Defaults Upon Senior Securities 12 Item 4. Submission of Matters to a Vote of Security Holders 12 Item 5. Other Information 13 Item 6. Exhibits and Reports on Form 8-K 13 SIGNATURES 14 EXHIBIT INDEX 15 PART 1. FINANCIAL INFORMATION ITEM 1. Financial Statements LUNAR CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets - ------------------------------------------------------------------------------ Assets - ------------------------------------------------------------------------------ December 31, June 30, 1997 1997 (Unaudited) (Audited) - ------------------------------------------------------------------------------ Current Assets: Cash and cash equivalents $ 4,698,203 $ 14,417,155 Marketable securities 7,754,646 5,891,350 Receivables: Trade, less allowance for doubtful accounts of $2,670,000 at December 31, 1997 and $2,602,000 at June 30, 1997 25,963,510 25,468,881 Other 777,142 1,061,558 - ------------------------------------------------------------------------------ 26,740,652 26,530,439 Inventories 13,355,409 9,373,490 Deferred income taxes 1,350,000 2,291,000 Other current assets 396,689 84,790 - ------------------------------------------------------------------------------ Total Current Assets 54,295,599 58,588,224 Property, Plant and Equipment--At Cost: Buildings and improvements 2,394,843 2,376,763 Furniture and fixtures 689,823 680,413 Machinery and other equipment 5,877,279 5,276,267 - ------------------------------------------------------------------------------ 8,961,945 8,333,443 Less accumulated depreciation and amortization 4,568,105 3,889,838 - ------------------------------------------------------------------------------ 4,393,840 4,443,605 Land 138,858 138,858 - ------------------------------------------------------------------------------ 4,532,698 4,582,463 Long-term trade accounts receivable 2,057,642 2,485,022 Long-term marketable securities 26,990,541 16,592,053 Patents and other intangibles, net of accumulated amortization of $1,380,132 at December 31, 1997 and $1,185,613 at June 30, 1997 730,507 850,867 Other 179,988 183,954 - ------------------------------------------------------------------------------ $88,786,975 $83,282,583 ============================================================================== See accompanying notes to consolidated financial statements LUNAR CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets - ------------------------------------------------------------------------------ Liabilities and Shareholders' Equity - ------------------------------------------------------------------------------ December 31, June 30, 1997 1997 (Unaudited) (Audited) - ------------------------------------------------------------------------------ Current Liabilities: Accounts payable $ 4,025,615 $ 4,209,485 Customer advances and deferred income 812,901 639,707 Income taxes payable 2,685,632 2,375,955 Accrued liabilities: Commissions payable 2,280,135 2,146,189 Compensation payable 329,276 290,913 Property, payroll, and other taxes 242,632 141,906 Accrued warranty and installation expenses 3,117,000 2,984,000 Other 307,947 251,036 - ------------------------------------------------------------------------------ Total Current Liabilities 13,801,138 13,039,191 Shareholders' Equity: Common stock--authorized 25,000,000 shares of $.01 par value; issued and outstanding 8,773,985 shares at December 31, 1997 and 8,721,425 at June 30, 1997 87,740 87,214 Capital in excess of par value 26,461,556 26,500,942 - ------------------------------------------------------------------------------ 26,549,296 26,588,156 Retained earnings 48,447,862 43,706,139 Unrealized appreciation in marketable securities 94,786 34,220 Cumulative translation adjustment (106,107) (85,123) - ------------------------------------------------------------------------------ 74,985,837 70,243,392 - ------------------------------------------------------------------------------ $88,786,975 $83,282,583 ============================================================================== See accompanying notes to consolidated financial statements LUNAR CORPORATION AND SUBSIDIARIES Consolidated Statements of Income (Unaudited) Three months ended Six months ended December 31, December 31, December 31, December 31, 1997 1996 1997 1996 - ------------------------------------------------------------------------------ Revenues $ 21,583,633 $20,516,096 $40,416,062 $39,430,735 - ------------------------------------------------------------------------------ Operating Expenses Cost of sales 9,919,032 9,031,731 18,705,757 17,409,209 Research and development 1,746,807 1,424,599 3,366,517 2,584,877 Selling and marketing 4,678,250 4,405,687 9,223,412 8,374,020 General and administrative 1,065,042 1,106,264 2,199,290 2,226,024 - ------------------------------------------------------------------------------ 17,409,131 15,968,281 33,494,976 30,594,130 - ------------------------------------------------------------------------------ Income From Operations 4,174,502 4,547,815 6,921,086 8,836,605 - ------------------------------------------------------------------------------ Other Income (Expense): Interest income 477,404 365,026 955,902 707,847 Settlement of lawsuit - 1,828,905 - 1,828,905 Other (603,176) 150,742 (839,265) (46,907) - ------------------------------------------------------------------------------ (125,772) 2,344,673 116,637 2,489,845 - ------------------------------------------------------------------------------ Income Before Income Taxes 4,048,730 6,892,488 7,037,723 11,326,450 Income Tax Expense 1,320,000 2,347,000 2,296,000 3,880,000 - ------------------------------------------------------------------------------ Net Income $ 2,728,730 $ 4,545,488 $ 4,741,723 $ 7,446,450 ============================================================================== Basic Earnings Per Share $0.31 $0.53 $0.54 $0.87 ============================================================================== Diluted Earnings Per Share $0.30 $0.50 $0.52 $0.82 ============================================================================== Weighted Average Number of Common Shares 8,759,643 8,555,430 8,737,739 8,534,661 ============================================================================== Weighted Average Number of Common and Dilutive Potential Common Shares 9,109,849 9,076,316 9,111,073 9,073,781 ============================================================================== See accompanying notes to consolidated financial statements LUNAR CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows (Unaudited) - ------------------------------------------------------------------------------ Six months ended December 31, December 31, 1997 1996 - ------------------------------------------------------------------------------ Cash Flows From Operating Activities: Net income $4,741,723 $7,446,450 Adjustments to Reconcile Net Income to Net Cash Provided By (Used In) Operating Activities: Depreciation and amortization 1,089,283 667,386 Changes in assets and liabilities: Receivables 221,133 8,696,558 Inventories (3,981,919) (1,160,440) Other current assets (311,899) (208,148) Deferred income taxes 941,000 (273,000) Accounts payable (204,854) 647,821 Customer advances and deferred income 173,194 12,750 Accrued liabilities 462,946 (53,615) Income taxes payable 309,677 1,170,620 - ------------------------------------------------------------------------------ Net Cash Provided By Operating Activities 3,440,284 16,946,382 - ------------------------------------------------------------------------------ Cash Flows From Investing Activities: Purchases of marketable securities (14,512,714) (1,000,000) Sales and maturities of marketable securities 2,095,000 851,600 Additions to property, plant and equipment (628,502) (862,392) Patents and other intangibles (74,159) (68,330) - ------------------------------------------------------------------------------ Net Cash Used In Investing Activities (13,120,375) (1,079,122) - ------------------------------------------------------------------------------ Cash Flows From Financing Activities: Proceeds from exercise of stock options 380,043 375,316 Income tax benefit from stock option exercises 659,221 1,057,477 Repurchase of common stock (1,078,125) - - ------------------------------------------------------------------------------ Net Cash Provided by (Used In) Financing Activities (38,861) 1,432,793 - ------------------------------------------------------------------------------ Net increase (decrease) in cash and cash equivalents (9,718,952) 17,300,053 Cash and cash equivalents at beginning of period 14,417,155 8,001,582 - ------------------------------------------------------------------------------ Cash and Cash Equivalents at end of period $ 4,698,203 $25,301,635 ============================================================================== Supplemental Disclosure of Cash Flow Information: Income taxes paid $ 413,000 $ 2,170,000 ============================================================================== See accompanying notes to consolidated financial statements LUNAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (1) BASIS OF PRESENTATION The consolidated financial statements of Lunar Corporation (the "Company") presented herein, without audit except for balance sheet information at June 30, 1997, have been prepared pursuant to the rules of the Securities and Exchange Commission for quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by generally accepted accounting principles. These statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended June 30, 1997, included in the Company's Form 10-K as filed with the Securities and Exchange Commission on September 26, 1997. The consolidated balance sheet as of December 31, 1997, the consolidated statements of income for the three and six months ended December 31, 1997 and 1996, and the consolidated statements of cash flows for the six months ended December 31, 1997 and 1996 are unaudited but, in the opinion of management, include all adjustments (consisting of normal, recurring adjustments) necessary for a fair presentation of results for these interim periods. The Company has reclassified the presentation of certain prior year information to conform with the current presentation format. The results of operations for the three and six months ended December 31, 1997, are not necessarily indicative of the results to be expected for the entire fiscal year ending June 30, 1998. (2) INVENTORIES Inventories are stated at the lower of cost or market; cost is determined principally by the first-in, first-out method. Inventories are broken down as follows: - ------------------------------------------------------------------------------ December 31, June 30, 1997 1997 (Unaudited) (Audited) - ------------------------------------------------------------------------------ Finished goods and work in progress $ 5,839,882 $2,909,854 Materials and purchased parts 7,515,527 6,463,636 -------------------------- $13,355,409 $9,373,490 ========================== (3) SHAREHOLDERS' EQUITY On April 22, 1997, the Company approved a stock repurchase program pursuant to which it may repurchase up to 1,000,000 shares of its common stock from time to time based upon market conditions and other factors. The Company has repurchased 55,000 shares under this program as of February 13, 1998. (4) EARNINGS PER COMMON SHARE Effective December 31, 1997, the Company has adopted the provisions of Statement of Financial Accounting Standards No. 128, Earnings per Share. Statement No. 128 replaces the previously reported primary and fully diluted earnings per share with basic and diluted earnings per share. Basic earnings per share are computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share are computed by dividing net income by the weighted average number of shares of common stock outstanding plus the number of additional common shares that would have been outstanding if common shares had been issued for outstanding stock options, calculated according to the treasury stock method. All earnings per share amounts for all periods presented have been restated to conform to the requirements of Statement No. 128. Item 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS Equipment sales and other revenue increased 5% to $21,584,000 in the three months ended December 31, 1997 from $20,516,000 in the three months ended December 31, 1996. For the six months ended December 31, 1997 equipment sales and other revenue increased 2% to $40,416,000 from $39,431,000 in the six months ended December 31, 1996. Sales by product line are summarized as follows: Revenues by Product (in thousands) Three Months Ended Six Months Ended ------------------------- ------------------------- December 31, December 31, December 31, December 31, 1997 1996 1997 1996 ------------------------- ------------------------- X-ray densitometry $16,253 $16,902 $29,110 $32,187 Ultrasound densitometry 1,381 1,597 2,708 2,786 Orthopedic Imaging 2,180 1,085 4,874 2,266 Service Revenue 1,361 614 2,768 1,417 Other 409 318 956 775 ------------------------- ------------------------- $21,584 $20,516 $40,416 $39,431 ========================= ========================= The decrease in x-ray densitometry sales may have been influenced by customer uncertainty in the United States over Medicare reimbursement rates. The preliminary 1998 axial reimbursement rates that were published in mid-1997 were significantly lower than the 1997 rates. However, when the final 1998 rates were published, the Health Care Financing Administration (HCFA) actually increased the 1998 rates to $131 from $121 in 1997. The increase in Orthopedic Imaging sales is primarily due to increased unit sales of Artoscan dedicated MRI and Orthopedic C-Arm (ORCA) systems. The increase in service revenue is primarily due to the growing installed base of densitometers in the United States. Cost of sales as a percentage of equipment sales averaged approximately 46% in the three and six month periods ended December 31, 1997, compared to 44% in the three and six month periods ended December 31, 1996. The increase is the result of a higher mix of orthopedic imaging equipment which have lower gross profit margins and a somewhat lower average sell price for densitometers. Research and development expenditures increased to $1,747,000 in the three months ended December 31, 1997 from $1,425,000 in the three months ended December 31, 1996 and increased to $3,367,000 in the six months ended December 31, 1997 from $2,585,000 in the six months ended December 31, 1996. The Company increased research and development expenditures for ultrasound and peripheral X-ray densitometry products during the three and six month periods ended December 31, 1997. Sales and marketing expenses were $4,678,000 in the three months ended December 31, 1997, compared to $4,406,000 in the three months ended December 31, 1996, representing an increase to 22% from 21% as a percentage of equipment sales. For the six months ended December 31, 1997, sales and marketing expenses were $9,223,000 compared to $8,374,000 for the six month ended December 31, 1996, representing an increase to 23% from 21% as a percentage of equipment sales. These increases are primarily the result of a higher mix of sales directly to international end-users, whereby the Company pays agent commissions. General and administration expenses decreased to $1,065,000 in the three months ended December 31, 1997 from $1,106,000 in the three months ended December 31, 1996, and decreased to $2,199,000 in the six months ended December 31, 1997 from $2,226,000 in the six months ended December 31, 1996. Interest income was $477,000 and $956,000 in the three and six months ended December 31, 1997, respectively, compared to $365,000 and $708,000 in the three and six months ended December 31, 1996, respectively. This increase is primarily the result of increased investments in marketable securities partially offset by decreases in the amount of financed receivables. The effective tax rate averaged 33% in the three and six month periods ended December 31, 1997 compared to 34% in the three and six month period ended December 31, 1996. The effective tax rate is lower in the three and six month periods ended December 31, 1997 versus the comparable prior year period due to increased tax exempt interest income. The rate for the three and six month periods ended December 31, 1997 is below the 34% federal statutory rate as a result of tax-exempt interest income and the benefit of the foreign sales corporation, offset by the provision for state income taxes. LIQUIDITY AND CAPITAL RESOURCES Cash and cash equivalents decreased $9,719,000 to $4,698,000 in the six months ended December 31, 1997 primarily due to the purchase of marketable securities. Additionally, the Company has a laddered portfolio of high-grade municipal bonds with various maturities not exceeding 48 months. The Company owned approximately $34,745,000 in municipal securities as of December 31, 1997, which are readily marketable. The Company's trade accounts receivable decreased $217,000 to $28,798,000 at December 31, 1997 from $29,015,000 at June 30, 1997. This decrease is attributable to the sale of approximately $4,232,000 of accounts receivable from selected customers in Latin America to a leasing company in December, 1997. The Company continues to have recourse of approximately 10% of the sales price in the event non-payment of the underlying accounts receivable should occur. Inventories increased 42% to $13,355,000 at December 31, 1997 from $9,373,000 at June 30, 1997. The increase in finished goods is primarily attributable to increases in Artoscan MRI units. The Company purchased a 25-acre parcel of land in January, 1998 at a price of $1,949,000 for the future construction of an assembly, warehouse and office building. The Company plans to begin construction of this new facility in March 1998. Total costs of the building are expected to be approximately $8,000,000. The Company does not have any other pending material commitments for capital expenditures. Management believes the current level of cash and short-term investments is adequate to finance the Company's operations for the foreseeable future. YEAR 2000 COMPLIANCE Many currently installed computer systems and software products are coded to accept only two-digit entries in the date code field. To distinguish 21st century from 20th century dates, these date code fields must be able to accept four-digit entries. The Company has reviewed its existing financial and other business information systems and believes that its computer systems will be able to manage and manipulate all material data involving the transition from 1999 to 2000 without functional or data abnormality and without inaccurate results related to such data. Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK Not applicable. PART II - OTHER INFORMATION LUNAR CORPORATION AND SUBSIDIARIES Item 1. Legal Proceedings PATENT LITIGATION: On March 5, 1996, the Company and University of Alabama - Birmingham Research Foundation (UAB) (collectively the co-plaintiffs) sued EG&G Astrophysics (EG&G) of Long Beach, California, in the United States District Court for the Western District of Wisconsin for infringement of U.S. Patent 4,626,688 (the '688 Patent) by EG&G's dual-energy baggage scanners. A trial of the matter in December of 1996 concluded with a verdict in favor of the co-plaintiffs. The Company and UAB were awarded $4.2 million in damages which was divided between the co-plaintiffs after deducting legal expenses. The co-plaintiffs also entered into a Settlement and License Agreement with EG&G whereby EG&G was licensed under the '688 patent and a related U.S. patent. The license agreement provides for payment of royalties to the co-plaintiffs on EG&G's dual-energy baggage scanners manufactured or sold in the United States. The license agreement ends on December 2, 2003. The Company is presently co-defendant and counterclaim co-plaintiff with the UAB in two declaratory judgment actions filed in the United States District Court for the Central District of California. Both actions seek a determination of non-infringement and invalidity of the '688 Patent. The first declaratory judgment action was filed on January 21, 1997 by RapiScan Security Systems, Inc.("RapiScan"). RapiScan manufactures and sells baggage scanning equipment and is a competitor of EG&G. The second declaratory judgment action was filed on February 26, 1997 by Osteometer Meditech A/S ("Osteometer"), a competitor of the Company. Osteometer manufactures and sells bone densitometry products and is located in Denmark. The Company intends to vigorously defend against these lawsuits. The Company does not believe these lawsuits will have a material effect on the results of operations or financial condition of the Company. Item 2. Changes in Securities None Item 3. Defaults Upon Senior Securities None Item 4. Submission of Matters to a Vote of Security Holders The 1997 Annual Meeting of Shareholders ("Annual Meeting") of the Company was held on November 21, 1997. The total number of shares of the Company's common stock, $0.1 par value per share, outstanding as of October 10, 1997, the record date of the Annual Meeting, was 8,737,535. Management of the Company solicited proxies pursuant to Section 14 of the Securities Exchange Act of 1934, as amended, and Regulation 14A promulgated thereunder for the Annual Meeting. Two (2) directors, Malcolm R. Powell and John J. McDonough were elected to serve until the 2000 Annual Meeting of Shareholders. The directors were elected by a vote of 7,301,266 votes "FOR" and 17,830 votes "WITHHELD AUTHORITY". On November 22, 1997, Mr. McDonough resigned from the Board of Directors to pursue other business opportunities. On December 12, 1997, James W. Nellen, II was appointed as a Director of the Company to fill the vacancy created by the resignation of Mr. McDonough. Mr. Nellen is formally a Vice President and the Corporate General Counsel for Fort Howard Corporation. An amendment to the Lunar Corporation Amended and Restated Stock Option Plan to increase the number of shares available under the plan was also approved. The increase was approved by a vote of 5,215,096 votes "FOR", 649,857 votes "AGAINST", and 132,088 votes "ABSTAIN". The selection of KPMG Peat Marwick LLP as the Company's independent auditors was also approved. The selection was approved by a vote of 7,306,626 votes "FOR", 6,296 votes "AGAINST", and 6,174 votes "ABSTAIN". Item 5. Other Information SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Certain statements in this filing, and elsewhere (such as in other filings by the Company with the Securities and Exchange Commission, press releases, presentations by the Company or its management, and oral statements) constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors include, among other things, regulation, technical risks associated with the development of new products, regulatory policies in the United States and other countries, reimbursement policies of public and private health care payors, introduction and acceptance of new drug therapies, competition from existing products and from new products or technologies, and market and general economic factors. Item 6. Exhibits and Reports on Form 8-K (a) Exhibits furnished: (11) Statement Re: Computation of Earnings Per Share (27) Financial Data Schedule (b) Reports on Form 8-K No reports on Form 8-K were filed by the Company during the quarter ended December 31, 1997. 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. LUNAR CORPORATION (Registrant) Date: February 13, 1998 /s/ Richard B. Mazess Richard B. Mazess President (Principal Executive Officer) Date: February 13, 1998 /s/ Robert A. Beckman Robert A. Beckman Vice President of Finance and Treasurer (Principal Financial and Accounting Officer) LUNAR CORPORATION AND SUBSIDIARIES Exhibit Index For the Quarterly Period Ended December 31, 1997 No. Description Page 11 Statement Regarding Computation of Earnings Per Share 16 27 Financial Data Schedule 17 EX-11 2 COMPUTATION OF PER-SHARE EARNINGS Exhibit 11 LUNAR CORPORATION AND SUBSIDIARIES Statement Regarding Computation of Earnings Per Share (Unaudited) Three months ended Six months ended December 31, December 31, December 31, December 31, 1997 1996 1997 1996 ------------------------------------------------------ Net income $ 2,728,730 $ 4,545,488 $ 4,741,723 $ 7,446,450 Weighted average number of common shares 8,759,643 8,555,430 8,737,739 8,534,661 Stock options calculated according to the treasury stock method 350,206 520,886 373,334 539,120 ------------------------------------------------------ Weighted average number of common and potential common shares 9,109,849 9,076,316 9,111,073 9,073,781 ====================================================== Basic earnings per share $0.31 $0.53 $0.54 $0.87 ====================================================== Diluted earnings per share $0.30 $0.50 $0.52 $0.82 ====================================================== EX-27 3 ART. 5 FDS FOR 2ND QUARTER 10-Q
5 This schedule contains summary financial information extracted from Form 10-Q for the three months ended December 31, 1997, and is qualified in its entirety by reference to such financial statements. 1,000 6-MOS JUN-30-1998 DEC-31-1997 4,698 34,745 31,468 2,670 13,355 54,296 9,101 4,394 88,787 13,801 0 88 0 0 74,898 88,787 40,416 40,416 18,706 33,495 839 0 0 7,038 2,296 4,742 0 0 0 4,742 .54 .52
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