-----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, L4/71WsLQlPMIqhs04/PwXf1wq3goOCVtO9WZsk3Ut1rgx6kKCmbx7spF9FI6a4q NNAYZB8SbiYCgJ7OEbjCvg== 0000950131-96-005753.txt : 19961115 0000950131-96-005753.hdr.sgml : 19961115 ACCESSION NUMBER: 0000950131-96-005753 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961113 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ITT EDUCATIONAL SERVICES INC CENTRAL INDEX KEY: 0000922475 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-EDUCATIONAL SERVICES [8200] IRS NUMBER: 362061311 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-13144 FILM NUMBER: 96661844 BUSINESS ADDRESS: STREET 1: 5975 CASTLE CREEK PARKWAY N DR STREET 2: PO BOX 50466 CITY: INDIANAPOLIS STATE: IN ZIP: 46250 BUSINESS PHONE: 3175944289 MAIL ADDRESS: STREET 1: 5975 CASTLE CREEK PKWY N DR STREET 2: P O BOX 50466 CITY: INDIANAPOLIS STATE: IN ZIP: 46250-0466 10-Q 1 FORM 10-Q FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly 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 1-13144 ITT EDUCATIONAL SERVICES, INC. (Exact name of registrant as specified in its charter) DELAWARE 36-2061311 (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 5975 CASTLE CREEK PARKWAY N. DRIVE P.O. BOX 50466 INDIANAPOLIS, INDIANA 46250-0466 (Address of principal executive offices) (Zip Code) (317) 594-9499 (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 [_] 26,999,952 Number of shares of Common Stock, $.01 par value, outstanding at November 5, 1996 ITT EDUCATIONAL SERVICES, INC. Indianapolis, Indiana Quarterly Report to Securities and Exchange Commission September 30, 1996 PART I ITEM 1. FINANCIAL STATEMENTS. INDEX ----- Page ---- Consolidated Statements of Income (unaudited) for the nine months ended September 30, 1996 and 1995 and the three months ended September 30, 1996 and 1995................................................................. 3 Consolidated Balance Sheets as of September 30, 1996 and 1995 (unaudited) and December 31, 1995.................................................... 4 Consolidated Statements of Cash Flows (unaudited) for the nine months ended September 30, 1996 and 1995 and the three months ended September 30, 1996 and 1995................................................................. 5 Notes to Consolidated Financial Statements................................. 6 -2- ITT EDUCATIONAL SERVICES, INC. CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
Three Months Ended Nine Months Ended September 30, September 30, ------------------------ -------------------------- 1996 1995 1996 1995 ---------- ---------- ----------- ----------- REVENUES Tuition $54,653 $47,171 $146,297 $129,129 Other educational 10,460 8,846 27,487 23,026 ------- ------- -------- -------- Total revenue 65,113 56,017 173,784 152,155 ------- ------- -------- -------- COSTS AND EXPENSES Cost of educational services 37,303 33,596 105,864 97,281 Student services and administrative expenses 17,769 14,870 51,154 43,010 ------- ------- -------- -------- 55,072 48,466 157,018 140,291 ------- ------- -------- -------- Operating income 10,041 7,551 16,766 11,864 Interest income, net 1,076 1,438 2,932 3,451 ------- ------- -------- -------- Income before income taxes 11,117 8,989 19,698 15,315 Income taxes 4,447 3,587 7,879 6,111 ------- ------- -------- -------- Net income $ 6,670 $ 5,402 $ 11,819 $ 9,204 ======= ======= ======== ======== Earnings per common share $.25 $.20 $.44 $.34 Average equivalent common shares outstanding (in thousands) 27,176 27,063 27,146 27,044
The accompanying notes are an integral part of these consolidated financial statements. -3- ITT EDUCATIONAL SERVICES, INC. CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT PER SHARE DATA)
September 30, 1996 September 30, 1995 (unaudited) December 31, 1995 (unaudited) ------------------- ----------------- ------------------- ASSETS Current assets Cash $ 474 $ 595 $ 722 Restricted cash 1,197 5,037 6,132 Cash invested with ITT Corporation 88,008 71,885 71,834 Accounts receivable, net 10,910 7,592 8,173 Deferred income tax 945 950 1,308 Prepaids and other current assets 2,714 1,508 2,167 -------- -------- -------- Total current assets 104,248 87,567 90,336 Property and equipment, net 18,630 18,985 18,834 Direct marketing costs 5,747 5,031 5,375 Other assets 2,479 2,701 2,613 -------- -------- -------- Total assets $131,104 $114,284 $117,158 ======== ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 20,321 $ 8,336 $ 12,291 Accrued compensation and benefits 4,430 4,195 4,086 Other accrued liabilities 5,611 6,172 6,987 Deferred tuition revenue 33,069 40,063 39,784 -------- -------- -------- Total current liabilities 63,431 58,766 63,148 Other liabilities 2,013 1,677 2,356 -------- -------- -------- Total liabilities 65,444 60,443 65,504 -------- -------- -------- Shareholders' equity Preferred stock, $.01 par value, 5,000,000 shares authorized, none issued or outstanding Common stock, $.01 par value, 50,000,000 shares authorized, 27,000,000, 12,000,000 and 12,000,000 issued and outstanding 270 120 120 Capital surplus 32,513 32,663 32,663 Retained earnings 32,877 21,058 18,871 -------- -------- -------- Total shareholders' equity 65,660 53,841 51,654 -------- -------- -------- Total liabilities and shareholders' equity $131,104 $114,284 $117,158 ======== ======== ========
The accompanying notes are an integral part of these consolidated financial statements. -4- ITT EDUCATIONAL SERVICES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) (UNAUDITED)
Three Months Ended September 30, Nine Months Ended September 30, -------------------------------- ------------------------------- 1996 1995 1996 1995 ---- ---- ---- ---- Cash flows from operating activities: Net earnings $ 6,670 $ 5,402 $ 11,819 $ 9,204 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 1,647 1,775 5,638 5,429 Provision for doubtful accounts 477 388 1,326 1,038 Deferred taxes (45) (150) 429 111 Increase/decrease in operating assets and liabilities: Accounts receivable (2,455) (1,811) (4,644) (2,635) Direct marketing costs (395) (198) (716) (321) Accounts payable and accrued liabilities 7,737 4,175 11,571 6,069 Prepaids and other assets 499 515 (984) (112) Deferred tuition revenue 1,612 1,987 (6,994) (1,187) -------- -------- -------- -------- Net cash provided by operating activities 15,747 12,083 17,445 17,820 Cash flows used for investing activities: Capital expenditures, net (2,371) (3,250) (5,283) (5,942) Net increase in cash invested with ITT Corporation (12,661) (13,402) (16,123) (15,924) -------- -------- -------- -------- Net cash used for investing activities (15,032) (16,652) (21,406) (21,866) -------- -------- -------- -------- Net increase (decrease) in cash and restricted cash 715 (4,569) (3,961) (4,046) Cash and restricted cash at beginning of period 956 11,423 5,632 10,900 -------- -------- -------- -------- Cash and restricted cash at end of period $ 1,671 $ 6,854 $ 1,671 $ 6,854 ======== ======== ======== ========
The accompanying notes are an integral part of these consolidated financial statements. -5- ITT EDUCATIONAL SERVICES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 (DOLLAR AMOUNTS IN THOUSANDS UNLESS OTHERWISE STATED) 1. The accompanying unaudited consolidated financial statements have been prepared by ITT Educational Services, Inc. (the "Company") without audit. In the opinion of management, the financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the financial condition and results of operations of the Company. Certain information and footnote disclosures, including significant accounting policies, normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K as filed with the Securities and Exchange Commission for the year ended December 31, 1995. The results of operations for the nine months ended September 30, 1996 are not necessarily indicative of results for the entire calendar year. 2. On October 8, 1996, the Company authorized a 3 for 2 Common Stock split effected by payment of a stock dividend on November 4, 1996 to all shareholders of record on October 21, 1996. The earnings per share amounts for all prior periods have been restated to reflect this stock split. In connection with the stock split, the shareholders' equity section of the September 30, 1996 balance sheet reflects a $90 transfer from Capital Surplus to Common Stock. On March 22, 1996, the Company declared a 3 for 2 Common Stock split, effected by payment of a stock dividend on April 15, 1996 to all shareholders of record at the close of business on April 1, 1996. The earnings per share amounts for all prior periods have been restated to reflect this stock split. 3. The Company has a number of pending legal and other claims arising out of the normal course of business. Among the legal actions currently pending is Eldredge, et al. v. ITT Educational Services, Inc., et al. (Civil Action No. 689376) (the "Eldredge Case"). This action was filed on June 8, 1995 in the Superior Court of San Diego County in San Diego, California by seven graduates of the San Diego ITT Technical Institute. The jury recently rendered a verdict against the Company and ITT Corporation in this action. General damages of approximately $0.2 million were assessed against the Company and ITT Corporation, jointly. Exemplary damages of $2.6 million and $4.0 million were assessed against the Company and ITT Corporation, respectively. Prejudgment interest was assessed on the general damages award, and post-judgment interest was assessed on the entire award. It is also anticipated that the judge will award the plaintiffs reasonable attorney's fees and costs. The plaintiffs' other claims of statutory violations by the Company have been dismissed. The Company intends to take all actions available to seek to overturn the awards and to appeal the decision. Management, based upon the advice of counsel, believes that it is probable that it will prevail in its appeal, thus no provision (other than the Company's legal expenses) for these awards has been made. If the Company's appeal of the judgment in the Eldredge Case is unsuccessful, a charge to earnings would be taken at that time in the amount of the awards, including the general and exemplary damages assessed against the Company, the plaintiffs' reasonable attorney's fees and costs, and the prejudgment and post-judgment interest assessed thereon. In addition, other legal proceedings may result by other persons alleging similar claims of misrepresentation and violations of certain statutory provisions of the California Education Code (commonly known as the Maxine Waters Act). In the opinion of management, the ultimate outcome of these matters should not have a material adverse effect on the Company's financial position, results of operations or cash flows. -6- ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. This management's discussion and analysis of financial condition and results of operations should be read in conjunction with the same titled section contained in the Company's Annual Report on Form 10-K as filed with the Securities and Exchange Commission for the year ended December 31, 1995 for discussion of cash receipts from financial aid programs, nature of capital additions, seasonality of revenues, components of income statement captions, interest payments on cash invested with ITT Corporation ("ITT") and other matters. The Company records its revenues as students attend class. Due to the two week vacations in June and December, the first and third quarters include 13 weeks of revenue and the second and fourth quarters include 11 weeks of revenue. The Company's incurrence of costs, however, is generally not affected by the academic schedule and such costs do not fluctuate significantly on a quarterly basis. As a result, net income in the second and fourth quarters is significantly less than in the first and third quarters. Results of Operations - --------------------- Revenues increased $9.1 million, or 16.3%, to $65.1 million in the three months ended September 30, 1996 from $56.0 million in the three months ended September 30, 1995. Revenues increased $21.6 million, or 14.2%, to $173.8 million in the nine months ended September 30, 1996 from $152.2 million in the nine months ended September 30, 1995. These increases are primarily due to a 5% increase in tuition rates in September 1995, an increase in the number of first-time students beginning classes in March, June and September 1996 as discussed below, increased total student enrollment as discussed below, and a change in the mix of students to higher tuition rate courses (i.e., bachelor's degree and computer-aided drafting technology programs). The total number of first-time and re-entering students beginning classes in 1996 and 1995 may be shown as follows:
Three Months Ended September 30, Nine Months Ended September 30, -------------------------------- ------------------------------- Percentage Percentage 1996 1995 Increase 1996 1995 Increase ---- ---- ---------- ---- ---- ---------- First-time students 7,271 6,290 15.6 16,752 13,948 20.1 Re-entering students 880 844 4.3 2,192 1,974 11.0 ----- ----- ---- ------ ------ ---- Total new students 8,151 7,134 14.3 18,944 15,922 19.0 ===== ===== ==== ====== ====== ====
The total student enrollment on September 30, 1996 was 23,971, compared to 21,863 students on September 30, 1995, an increase of 9.6%. Cost of educational services increased $3.7 million, or 11.0%, to $37.3 million in the three months ended September 30, 1996 from $33.6 million in the three months ended September 30, 1995. Cost of educational services increased $8.6 million, or 8.9%, to $105.9 million in the nine months ended September 30, 1996 from $97.3 million in the nine months ended September 30, 1995. These increases are principally a result of costs required to service the increased enrollment, normal inflationary cost increases for wages, rent and other costs of services, and increased costs at new technical institutes (two opened in September 1995, two in March 1996, and one in September 1996). Cost of educational services decreased as a percentage of revenue in the three and nine months ended September 30, 1996 from the respective periods in 1995 primarily because of greater revenues being spread over the fixed portion of cost of educational services. Student services and administrative expenses increased $2.9 million, or 19.5%, to $17.8 million in the three months ended September 30, 1996 from $14.9 million in the three months ended September 30, 1995. Student services and administrative expenses increased $8.2 million, or 19.1%, to $51.2 million in the nine months ended September 30, 1996 from $43.0 million in the nine months ended September 30, 1995. To address the relatively soft market for new student -7- enrollment, the Company increased its media advertising expenses in the three and nine months ended September 30, 1996 by approximately 31% and 30%, respectively, over the same expenses incurred in the three and nine months ended September 30, 1995, respectively. Student services and administrative expenses also increased as a result of normal inflationary cost increases for wages and media advertising. The Company incurs operating losses when opening new institutes. Five new institutes were opened in 1993, six in 1994, two in 1995 and three in the first nine months of 1996. A new institute typically is open for approximately 24 months before it experiences a profit. The revenues and expenses of these institutes are included in the respective captions in the consolidated statement of income. The amount of operating losses (pre-tax) during the three and nine months ended September 30, 1996 for institutes open less than 24 months were $1.2 million and $4.9 million, respectively, compared to $1.5 million and $5.9 million for the three and nine months ended September 30, 1995, respectively. Operating income increased $2.4 million, or 31.6%, to $10.0 million in the three months ended September 30, 1996 from $7.6 million in the three months ended September 30, 1995. Operating income increased $4.9 million, or 41.2%, to $16.8 million in the nine months ended September 30, 1996 from $11.9 million in the nine months ended September 30, 1995. These increases are primarily due to the control of costs and the reduction of operating losses of new institutes (i.e., 11 institutes in the first 24 months of operation in the nine months ended September 30, 1996 compared to 13 in the nine months ended September 30, 1995). The operating margin increased to 9.6% of revenues in the nine months ended September 30, 1996, up from 7.8% in the nine months ended September 30, 1995. Interest income in the three months ended September 30, 1996 decreased $0.4 million from the three months ended September 30, 1995 because of a reduction in the interest rate earned on the cash invested by the Company with ITT (i.e., 5.5% in the three months ended September 30, 1996 compared to 7.5% in the three months ended September 30, 1995). Interest income decreased $0.5 million, or 14.7%, to $2.9 million in the nine months ended September 30, 1996 from $3.4 million in the nine months ended September 30, 1995 because of the reduction in interest rate discussed above, that was offset by an increase because of a non- recurring interest expense of $250,000 related to a previously recorded liability for a state tax assessment recorded in the three months ended June 30, 1995. Financial Condition, Liquidity and Capital Resources - ---------------------------------------------------- Due to the seasonal pattern of enrollments and the receipt of tuition payments, comparisons of financial position and cash generated from operations should be made both to the end of the previous year and to the corresponding period during the previous year. Net cash provided by operating activities increased $3.7 million to $15.8 million in the three months ended September 30, 1996 compared to $12.1 million in the three months ended September 30, 1995. Net cash provided by operating activities decreased $0.4 million to $17.4 million in the nine months ended September 30, 1996 compared to $17.8 million in the nine months ended September 30, 1995. This decrease is primarily due to the July 1995 federal regulation that changes the timing of receipt of federal financial aid to later dates in 1996 than 1995 and its impact on accounts receivable and deferred tuition revenue. The Company received $8.4 million of cash on October 7, 1996 pursuant to the July 1995 federal regulation. This amount would have been received in September 1996 pursuant to the previous regulations. Capital expenditures were $2.4 million in the three months ended September 30, 1996 compared to $3.3 million in the three months ended September 30, 1995. Capital expenditures were $5.3 million in the nine months ended September 30, 1996 compared to $5.9 million in the nine months ended September 30, 1995. The Company expects that the capital additions for the full 1996 year will be approximately $9.0 million or a $0.5 million increase over 1995. -8- The capital additions for a new technical institute are approximately $0.4 million and the capital additions for each new curriculum at an existing institute are approximately $0.2 million. The Company anticipates that its planned capital additions can be funded through cash flows from operations. Cash flows from operations on a long-term basis are highly dependent upon the receipt of funds from federal financial aid programs and the amount of funds spent on new technical institutes, curricula additions at existing institutes and possible acquisitions. Management, based on the advice of counsel, believes that it is probable that it will prevail in its appeal in Eldredge, et al. v. ITT Educational Services, Inc., et al. (the "Eldredge Case"), thus no provision for the awards in that case has been made. If the Company's appeal of the judgment in the Eldredge Case is unsuccessful, a charge to earnings would be taken at that time in the amount of the awards, including the general and exemplary damages assessed against the Company, the plaintiffs' reasonable attorney's fees and costs, and the prejudgment and post-judgment interest assessed thereon. Factors That May Affect Future Results - -------------------------------------- This report contains certain forward looking statements that involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially are the following: business conditions and growth in the postsecondary education industry and in the general economy; changes in federal and state governmental regulations with respect to education and accreditation standards, or the interpretation or enforcement thereof, including, but not limited to, the level of government funding for, and the Company's eligibility to participate in, student financial aid programs utilized by the Company's students; the results of the Company's appeal in Eldredge, et al. v. ITT Educational Services, Inc., et al.; effects of any change in ownership of the Company resulting in a change in control of the Company, including, but not limited to, the consequences of such changes on the accreditation and federal and state regulation of the institutes; receptivity of students and employers to the Company's existing program offerings and new curricula; loss of lender access to the Company's students for student loans; and a substantial increase in the shares of Common Stock available for sale in the market if ITT divests some or all of its Common Stock holdings. -9- PART II ITEM 1. LEGAL PROCEEDINGS. The Company is subject to litigation in the ordinary course of its business. Among the legal actions currently pending is Eldredge, et al. v. ITT Educational Services, Inc., et al. (Civil Action No. 689376) (the "Eldredge Case"). As reported in the Company's Report on Form 10-Q for the quarter ended June 30, 1996, this action was filed on June 8, 1995 in the Superior Court of San Diego County in San Diego, California by seven graduates of the San Diego ITT Technical Institute. The jury recently rendered a verdict against the Company and ITT Corporation in this action. General damages of approximately $0.2 million were assessed against the Company and ITT Corporation, jointly. Exemplary damages of $2.6 million and $4.0 million were assessed against the Company and ITT Corporation, respectively. Prejudgment interest was assessed on the general damages award, and post-judgment interest was assessed on the entire award. It is also anticipated that the judge will award the plaintiffs reasonable attorney's fees and costs. The plaintiffs' other claims of statutory violations by the Company have been dismissed. The Company intends to take all actions available to seek to overturn the awards and to appeal the decision. Although the Company is optimistic that it may be able to reverse or reduce the verdict, there can be no assurance thereof. Management, based on the advice of counsel, believes that it is probable that it will prevail in its appeal, thus no provision (other than the Company's legal expenses) for these awards has been made. If the Company's appeal of the judgment in the Eldredge Case is unsuccessful, a charge to earnings would be taken at that time in the amount of the awards, including the general and exemplary damages assessed against the Company, the plaintiffs' reasonable attorney's fees and costs, and the prejudgment and post-judgment interest assessed thereon. In addition, other legal proceedings may result by other persons alleging similar claims of misrepresentation and violations of certain statutory provisions of the California Education Code (commonly known as the Maxine Waters Act). While there can be no assurances as to the ultimate outcome of any litigation involving the Company, management does not believe any other pending legal proceeding will result in a judgment or settlement that will have, after taking into account the Company's existing provisions for such liabilities, a material adverse effect on the Company's financial position, results of operations or cash flows. Certain litigation may, however, subject the affected ITT Technical Institute to additional regulatory scrutiny. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. (a) Exhibits. A list of exhibits required to be filed as part of this report is set forth in the Index to Exhibits, which immediately precedes such exhibits, and is incorporated herein by reference. (b) Reports on Form 8-K. No reports on Form 8-K were filed during the quarter ended September 30, 1996. -10- 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. ITT EDUCATIONAL SERVICES, INC. Date: November 12, 1996 By: /s/ Gene A. Baugh ----------------------------------------------- GENE A. BAUGH Senior Vice President, Treasurer and Controller (Principal Financial Officer) INDEX TO EXHIBITS Exhibit No. Description - -------------------------------------------------------------------------------- 11 Statement re Computation of Per Share Earnings................... 27 Financial Data Schedule.......................................... - ---------------------- S - 2 EX-11 2 COMPUTATION OF PRIMARY AND FULLY DILUTED EARNINGS EXHIBIT 11 ITT EDUCATIONAL SERVICES, INC. COMPUTATION OF PRIMARY AND FULLY DILUTED EARNINGS PER SHARE (AMOUNTS IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
Three Months Ended September 30, Nine Months Ended September 30, -------------------------------- ------------------------------- 1996 1995 1996 1995 ------- ------- ------- ------- Net income $ 6,670 $ 5,402 $11,819 $ 9,204 ======= ======= ======= ======= Shares: Weighted average number of shares of common stock outstanding 27,000 27,000 27,000 27,000 Shares assumed issued (less shares assumed purchased for treasury) on stock options 176 63 146 44 ------- ------- ------- ------- Outstanding equivalent shares for primary earnings per share calculation 27,176 27,063 27,146 27,044 ======= ======= ======= ======= Earnings per common share $ .25 $ .20 $ .44 $ .34 ======= ======= ======= =======
Exhibit 11 EX-27 3 FINANCIAL DATA SCHEDULE
5 1000 9-MOS DEC-31-1996 JAN-01-1996 SEP-30-1996 89679 0 11644 (734) 0 104248 62600 (43970) 131104 63431 0 270 0 0 65390 131104 0 173784 0 157018 0 1326 0 19698 7879 11819 0 0 0 11819 0.44 0.44
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