-----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, NxTe0QUwPvGuiZ41ws6AgRmZdLVh/dSK0HaCDpX3hLUW6rD9DI4JR5/fMijwBra6 Uv5ikN5n5ceCttaNklCgfQ== 0000950170-96-000688.txt : 19960928 0000950170-96-000688.hdr.sgml : 19960928 ACCESSION NUMBER: 0000950170-96-000688 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960821 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ASSOCIATED BUSINESS & COMMERCE INSURANCE CORP CENTRAL INDEX KEY: 0000928775 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 650496132 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 033-83116 FILM NUMBER: 96618692 BUSINESS ADDRESS: STREET 1: 4700 NW BOCA RATON BLVD STREET 2: STE 400 CITY: BOCA RATON STATE: FL ZIP: 33431 BUSINESS PHONE: 4079970708 MAIL ADDRESS: STREET 1: 4700 NW BOCA RATON BLVD STREET 2: STE 400 CITY: BOCA RATON STATE: FL ZIP: 33431 10-Q 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1996 Commission file number 33-83116 ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION (Exact name of Registrant as specified in its charter) FLORIDA 65-0496132 (State or other jurisdiction of (IRS Employer Identification No.) incorporation of organization) 4700 NW BOCA RATON BOULEVARD, SUITE 400, BOCA RATON, FL 33431 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (561) 997-0708 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(b) 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 [ ] The number of the outstanding Preferred Stock held by nonaffiliates of the Registrant on August 5, 1996 was 243,860 shares.
ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION TABLE OF CONTENTS Part I. Financial Information Statement of Operations (unaudited), three months and six months ended June 30, 1996.....3 Balance Sheets, June 30, 1996 (unaudited) and December 31, 1995..........................4 Statements of Changes in Stockholders' Equity, six months ended June 30, 1996 (unaudited) and the year ended December 31, 1995.......................6 Statement of Cash Flows (unaudited), six months ended June 30, 1996......................7 Notes to Financial Statements (unaudited) ...............................................8 Management's Discussion and Analysis of Financial Condition and Results of Operations...12 Part II. Other Information Item 1. Legal Proceedings...............................................................14 Item 2. Changes in Securities...........................................................14 Item 3. Defaults Upon Senior Securities.................................................14 Item 4. Submission of Matters to a Vote of Security Holders.............................14 Item 5. Other Information...............................................................14 Item 6. Exhibits and Reports on Form 8-K................................................14 Signatures................................................................................15
PART I FINANCIAL INFORMATION ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND THE SIX MONTHS ENDED JUNE 30, 1996 UNAUDITED THREE MONTHS SIX MONTHS ENDED ENDED MARCH 31, 1996 JUNE 30, 1996 -------------- ------------- Revenues: Standard premium earned, net of discounts $ 6,917,029 $13,641,277 Less premium ceded for reinsurance 4,979,331 9,796,467 ----------- ----------- Net premium earned 1,937,698 3,844,810 Less loss and loss adjustment expenses 1,382,313 2,440,036 ----------- ----------- Premiums available for operations 555,385 1,404,774 Earned premium LPT transaction 162,757 245,036 Interest earnings 248,041 469,779 ----------- ----------- 966,183 2,119,589 Policy acquisition and other underwriting expenses 848,359 1,836,589 ----------- ----------- Income before income taxes 117,824 283,000 Income tax expense 40,000 96,000 ----------- ----------- Net income $ 77,824 $ 187,000 =========== =========== Earnings per common share and common share equivalent $ 0.76 $ 1.40 =========== =========== The accompanying notes are an integral part of these financial statements. -3-
ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION BALANCE SHEET JUNE 30, 1996 (UNAUDITED) AND DECEMBER 31, 1995 ASSETS JUNE 30, DECEMBER 31, 1996 1995 (UNAUDITED) ----------- ----------- Investments with fixed maturities $11,597,372 $14,439,231 Cash and cash equivalents 1,145,017 2,242,245 Premiums receivable, less allowance for doubtful accounts 1996 $874,679; 1995 $613,125 4,771,982 4,849,556 Reinsurance and related recoverables: Paid loss recoverable 369,581 94,598 Loss and loss adjustment expenses 17,634,142 14,471,111 Prepaid reinsurance premiums 186,776 530,957 Advances receivable 462,397 175,832 Accrued investment income 157,475 211,277 Prepaid expenses 663,830 1,821,000 Deferred income taxes 988,000 1,084,000 Deferred policy acquisition costs 587,501 389,737 Equipment, less accumulated depreciation 1996 $36,163; 1995 $4,837 525,594 289,871 Other assets, net 82,063 101,202 ----------- ----------- $39,171,730 $40,700,617 =========== ===========
The accompanying notes are an integral part of these financial statements. -4-
ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION BALANCE SHEET - CONTINUED JUNE 30, 1996 (UNAUDITED) AND DECEMBER 31, 1995 RESERVES, LIABILITIES AND STOCKHOLDERS' EQUITY JUNE 30, DECEMBER 31, 1996 1995 ----------- ------------ (UNAUDITED) Reserves for losses and loss adjustment expenses $27,379,052 $28,306,416 Liabilities: Accounts payable and accrued expenses 2,385,285 2,709,469 Unearned and return premium payable 2,945,161 2,346,983 Deferred gain on loss portfolio transfer 515,842 760,878 Accrued income taxes and special tax deposits 28,200 1,078,200 ----------- ----------- 5,874,488 6,895,530 Commitments and contingencies Total reserves and liabilities 33,253,540 35,201,946 Stockholders' equity: Convertible preferred stock series A, 6% cumulative, $1 par value, authorized shares 1,900,000; issued and outstanding 249,454 shares (aggregate liquidation preference of $2,494,540 at June 30, 1996) 249,454 221,805 Additional paid - in capital, preferred series A 2,245,086 1,996,245 Convertible preferred stock series B, $1 par value, authorized, issued and outstanding 3,200,000 shares 3,200,000 3,200,000 Common stock, $1 par value, authorized 15,000,000 shares; 102,501 shares issued and outstanding 102,501 102,501 Retained earnings (deficit) 121,149 (21,880) ----------- ------------ 5,918,190 5,498,671 ----------- ------------ $39,171,730 $ 40,700,617 =========== ============
The accompanying notes are an integral part of these financial statements. -5-
ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND THE YEAR ENDED DECEMBER 31, 1995 ADDITIONAL PAID - IN PREFERRED STOCK CAPITAL RETAINED --------------------- PREFERRED COMMON EARNINGS SERIES A SERIES B SERIES A STOCK (DEFICIT) -------- -------- ----------- -------- ---------- Balance, beginning of period $ -- $ -- $ -- $ 102,501 $ (10,245) Preferred stock issued for cash 221,805 3,200,000 1,996,845 Net (loss) (11,635) ---------- ---------- ---------- ---------- ---------- Balance, December 31, 1995 221,805 3,200,000 1,996,845 102,501 (21,880) Preferred stock issued for cash (Unaudited) 27,649 248,841 Dividends to preferred stockholders (Unaudited) (43,971) Net income (Unaudited) 187,000 ---------- ---------- ---------- ---------- ---------- Balance June 30, 1996 (Unaudited) $ 249,454 $3,200,000 $2,245,686 $ 102,501 $ 121,149 ========== ========== ========== ========== ==========
The accompanying notes are an integral part of these financial statements. -6- ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED) OPERATING ACTIVITIES Net income $ 187,000 Adjustments: Change in net insurance reserves (4,365,378) Change in premiums receivable 77,574 Accrued income taxes (1,050,000) Other 1,543,419 ----------- Net cash and cash equivalents (used in) operating activities (3,607,385) ----------- INVESTING ACTIVITIES Proceeds from investment maturities 2,815,140 Proceeds for other assets, net (3,888) Purchase of equipment (247,049) Payments of advances, net (286,565) ----------- Net cash and cash equivalents provided by investing activities 2,277,638 ----------- FINANCING ACTIVITIES Payment of preferred dividends (43,971) Proceeds from issuance of preferred stock 276,490 ----------- Net cash and cash equivalents provided by financing activities 232,519 ----------- Net (decrease) in cash and cash equivalents (1,097,228) Cash and cash equivalents, beginning of period 2,242,245 ----------- Cash and cash equivalents, end of period $ 1,145,017 =========== The accompanying notes are an integral part of these financial statements. -7- ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION NOTES TO FINANCIAL STATEMENTS JUNE 30, 1996 UNAUDITED NOTE 1 - BASIS OF PRESENTATION The financial information presented as of any date other than December 31 has been prepared from the books and records without audit. Financial information as of December 31 has been derived from the audited financial statements of the Company, but does not include all disclosures required by generally accepted accounting principles. The accompanying financial statements have been prepared in conformity with generally accepted accounting principles. These financial statements rely, in part, on estimates. In the opinion of management, all necessary adjustments have been reflected for a fair presentation of the results of operations, financial position and cash flows in the accompanying unaudited financial statements. The results for the period are not necessarily indicative of the results to be expected for the entire year. Reference should be made to the "Notes to Financial Statements" on pages F - 8 through F - 22 of the registrant's Form 10 - K for the year ended December 31, 1995. The amounts in those notes have not changed except as a result of transactions in the ordinary course of business or as otherwise disclosed in these notes. Some figures in the 1995 financial statements have been reclassified to conform with the 1996 presentation. These reclassifications have no effect on net income or stockholders' equity, as previously reported. Comparative results of operations and cash flow information is not presented because the registrant did not begin insurance operations until December 1995. Activity until that time was limited to organizational activities. NOTE 2 - INVESTMENTS Investment activity for the period ending June 30, 1996 consisted of the collection of maturities, early call proceeds and proceeds from the sale of certain available for sale fixed maturity securities, which totalled $2,813,631. Market value of the Company's available for sale fixed maturity securities continued to approximate amortized cost; accordingly no provision for appreciation (depreciation) in investments is recorded in stockholders' equity. -8- ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION NOTES TO FINANCIAL STATEMENTS JUNE 30, 1996 UNAUDITED NOTE 3 - EARNINGS PER SHARE Earnings per common share were calculated by dividing net income by the adjusted average number of common shares outstanding. Net income was adjusted by preferred dividends declared and paid during April 1996. There was no change in the average number of outstanding common shares from December 31, 1995, and there was no dilution of common stock because the preferred stock is not convertible to common stock before January 1, 2000. The calculation of earnings per share for the three and six month periods ended June 30, 1996 is based upon the following information:
THREE MONTHS SIX MONTHS ENDED ENDED MARCH 31, 1996 JUNE 30, 1996 --------------- ------------- Net income $ 77,824 $ 187,000 Dividends applicable to Convertible Series A, 6% cumulative preferred stock - (43,971) ---------- ------------ $ 77,824 $ 143,029 ========== ============
NOTE 4 - INCOME TAXES The provision for income taxes for the period ended June 30, 1996 is as follows:
Federal income taxes currently payable (refundable) $ - Deferred federal income taxes 96,000 ------------ $ 96,000 ============
NOTE 5 - REINSURANCE The Company's financial statements reflect the effects of ceded reinsurance transactions. The Company does not assume reinsurance in the ordinary course of business. However, effective November 30, 1995, the Company, in a transaction approved by the Florida Department of Insurance, assumed the insurance assets and liabilities of Associated Business & Commerce Workers' Compensation Self - Insurance Fund, the Company's predecessor (the "Fund"), by virtue of a loss portfolio transaction ("LPT"). The excess of premium received over losses assumed was treated as deferred LPT premium on the balance sheet. The deferred LPT premium is earned in the ratio of assumed losses paid to total assumed losses. Deferred LPT premium earned for the period ended June 30, 1996 totalled $245,036. Ceded reinsurance involves transferring certain risks the Company has underwritten to other insurance companies who agree to share these risks. The primary purpose of ceded reinsurance is to protect the Company from potential losses in excess of the amount it is prepared to accept. -9- ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION NOTES TO FINANCIAL STATEMENTS JUNE 30, 1996 UNAUDITED NOTE 5 - REINSURANCE (CONTINUED) The Company expects those with whom it has ceded reinsurance to honor their obligations. In the event these companies are unable to honor their obligations, the Company will pay the shortfall. The following table summarizes the effect of reinsurance on premiums earned and insurance losses and loss adjustment expenses for the period ended June 30, 1996: Premiums earned: Direct $ 13,641,277 Ceded (9,796,467) -------------- Net premiums earned $ 3,844,810 ============== Insurance losses and loss adjustment expenses: Direct $ 8,290,933 Ceded (5,850,897 -------------- Net insurance losses $ 2,440,036 ============== NOTE 6 - LEGAL PROCEEDINGS From time to time, the Company may be involved in workers' compensation proceedings relating to claims arising out of its operations in the normal course of business. As of the filing date of the Form 10-Q, the Company is not party to any legal proceedings outside of its ordinary workers compensation settlement business which management believes would materially affect the financial position or operations of the Company with the exception of the matter described below. In July 1992, the Fund filed a lawsuit in the State Circuit Court of Palm Beach County, Florida, forbreach of contract against Advanced Risk Management Incorporated ("ARMI") claiming damages for excess fees and advances collected by ARMI, the former service company of the Fund. A counterclaim was filed by ARMI alleging breach of contract, breach of fiduciary duty and fraud. On January 2, 1994, the court granted summary judgment in favor of the Fund with respect to all of the counterclaims made by ARMI. The summary judgment was appealed by ARMI and reversed by the Fourth District Court of Appeal, which remanded the matter back to the trial court to resolve specific issues. On December 15, 1995 the trial court granted the Fund's renewed motion for summary judgment. ARMI has filed an appeal as to this judgment as well. The Fund intends to continue to pursue and defend this claim on its own behalf. There can be no assurance however, that, in the event of an unfavorable ruling against the Fund, recovery would not be sought from the Company. In the event there is an unfavorable outcome, which management believes to be unlikely, the Fund's liability is estimated at less than $1,000,000, for which the Company would be responsible. -10- ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION NOTES TO FINANCIAL STATEMENTS JUNE 30, 1996 UNAUDITED NOTE 6 - RELATED PARTY TRANSACTIONS All of the Company's outstanding common stock as well as all of the outstanding Series B preferred stock are owned by the Company's parent, Associated Business & Commerce Holdings, Inc. ("Holdings"). Holdings was organized in March 1995 for the purpose of providing financing and performing certain management services for the Company under a management agreement. All common stock and Series B preferred stock have been pledged as collateral against a note payable issued by Holdings. The note payable of Holdings was issued to the Company's quota share reinsurer, Underwriters Reinsurance Company ("Underwriters"). The loan bears interest at 12.75% per annum, and, if not prepaid, is due on September 30, 2000. Holdings expects to repay the loan from fees paid by the Company under a management agreement. Holdings renegotiated the loan agreement with Underwriters during the second quarter of 1996, reducing the level of cash flows required for debt service, and concurrently reduced the management fee to 11.3% of written premium. The management agreement originally called for the Company to pay 14.1% of written premium to Holdings in return for Holdings performing certain administrative functions and paying certain costs on behalf of the Company. Management fee expense incurred by the Company under the terms of this renegotiated agreement totaled $1,693,002 for the period ended June 30, 1996. Policy acquisition and other underwriting expenses reflected in the statement of operations for the period period ended June 30, 1996 are net of $2,394, 679 in ceding commissions paid to the Company by Underwriters. The advances receivable at June 30, 1996 of $462,397 represents working capital advances to Holdings which are non - interest bearing and will be repaid as cash flow of Holdings permits. NOTE 7 - STOCKHOLDERS' EQUITY On May 2, 1996, the Company's Board of Directors adopted an amendment to its articles of incorporation to increase the number of authorized shares of 6% Cumulative Convertible Preferred Stock, Series A, from 900,000 to 1,900,000. -11- ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION Management's Discussion and Analysis of Financial Condition and Results of Operations June 30, 1996 RESULTS OF OPERATIONS The Company is reporting income before taxes for the first two quarters of 1996 of $283,000 based on premium volume of $13,600,000. Annualized premium as of June 30, 1996 amounts to approximately $27,300,000 or a slight reduction from the calendar year 1995 amount of $27,900,000. As discussed in the Company's Form 10-K for 1995, certain insureds elected not to renew their coverage with the Company effective January 1, 1996, which management perceived as being the result of increased competition generated by favorable 1993 legislative changes and also the late date in 1995 that the Company completed its plan to announce the availability of non-assessable insurance coverage. Since the Form 10-K was prepared and filed, the Company has written new business which has resulted in a restoration to 1995 writing levels. The adjustments to premium pricing and availability factors as discussed in the Form 10-K have resulted in a greater portion of submissions being accepted by potential customers. Although writings have been restored to 1995 levels, leading management to be optimistic regarding the Company's 1996 writings, the adjustments to budgeted expenditures made by management in response to the reduction of January 1, 1996 renewals remain in place, to be modified only to the extent required by increasing premium volume. As a result of the full absorption of the Company's 70% quota-share arrangements, earned premiums ceded for reinsurance (including excess loss re-insurance) amounts to 71.8% of earned premium. Loss and operating expense ratios are effected somewhat by the ceding of premium in comparison to 1995's ratios during which the quota-share treaty was only in effect for the last quarter of the year. For the first two quarters of 1996, the loss and loss expense ratio is 63.5% and the expense ratio is 47.8% or a combined ratio of 111.2%. The investment ratio (interest and investment earnings divided by net earned premium) amounted to 12.2% for the second quarter resulting in an overall operating ratio of 99%. Included within the statement of operations is recognition of deferred gain on the loss portfolio transfer transaction between the Company and the Fund of approximately $245,000. Without the recognition of this gain, the Company would have recorded operating income before income taxes of approximately $38,000. For the six months ended June 30, 1995, the Fund reported earned premium of approximately $13,600,000 and income before taxes of approximately $354,000 in its unaudited financial statements. The Fund was not a party to any quota-share reinsurance treaty during that period nor was any management agreement in effect as is the case with the Company for 1996. Policy acquisition and other underwriting expenses for the Company for the first quarter included approximately $144,000 of amounts paid to Holdings, which was utilized by Holdings for debt service on its loan from Underwriters. However, based upon Holdings renegotiating the terms of its note payable to Underwriters, no amount of the management fee was used for debt service during the second quarter. As indicated above, Holdings renegotiated its note payable with Underwriters during the second quarter ended June 30, 1996. Under the revised agreement, no principal or interest payments are payable until March 31, 1997, and Underwriters will refund all principal and interest payments made through June 30, 1996. All other terms of the note remain unchanged. -12- ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION Management's Discussion and Analysis of Financial Condition and Results of Operations June 30, 1996 LIQUIDITY AND CAPITAL RESOURCES As was anticipated and described in the Company's Form 10-K, cash flows from operating activities for the first two quarters was a negative $3,600,000. This was anticipated because of the Company's quota-share arrangements with Underwriters. Such negative cash flows from operations were offset by proceeds from investment maturities and other investment activities realizing cash flows of approximately $2,300,000 and from proceeds from the issuance of additional Series A preferred stock of approximately $276,000 resulting in an overall decrease in cash and cash equivalents for the six months ended June 30, 1996 of approximately $1,100,000. Invested assets reduced from $14,400,000 at the end of 1995 to $11,600,000 as of June 30, 1996 with a decrease in cash of approximately $1,100,000. Negative cash flows from operations are expected to continue throughout 1996 as funding of the quota-share recoverables continues by virtue of the transfer of premium to the quota-share reinsurer pursuant to the quota-share treaty. As claims are settled and paid in the future, management anticipates that such negative flows will eventually reverse or stabilize as reimbursements due from the reinsurer for claims paid and other reimbursements for operating expenses equal or exceed premiums due pursuant to the treaty. On a statutory basis, the Company is reporting statutory surplus of approximately $4,900,000 and statutory net income of $893,000 for the six months ended June 30, 1996. Based upon the Company's current writings, required statutory surplus is the minimum of $4,000,000, pursuant to Florida's Insurance Code. On May 2, 1996, the Company's Board of Directors adopted an amendment to its articles of incorporation to increase the number of authorized shares of 6% Cumulative Convertible Preferred Stock, Series A, from 900,000 to 1,900,000. -13- ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION Part II Other Information ITEM 1. LEGAL PROCEEDINGS There have been no significant developments in those matters discussed in Item 3 of the Company's Form 10-K for 1995. ITEM 2. CHANGES IN SECURITIES Not Applicable. ITEM 3. DEFAULTS UPON SENIOR SECURITIES Not Applicable. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS Not Applicable. ITEM 5. OTHER INFORMATION Not Applicable. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. a) EXHIBIT INDEX Exhibit 27 Financial Data Schedule b) Reports on Form 8-K - The Company filed no reports on Form 8-K during the quarter ended June 30, 1996. 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. ASSOCIATED BUSINESS & COMMERCE INSURANCE CORPORATION Registrant Date: August 21, 1996 /s/ JAMES R. NAU ---------------------------------------------------- James R. Nau President Date: August 20, 1996 /s/ CLIFFORD G. MERRITT ---------------------------------------------------- Clifford G. Merritt Vice President, Finance (Principal Financial and Accounting Officer) EX-27 2
7 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE UNAUDITED STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND THE UNAUDITED BALANCE SHEET AS OF JUNE 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 6-MOS DEC-31-1996 JUN-30-1996 2,364,145 9,233,227 8,947,096 0 0 0 11,597,372 1,145,017 369,581 587,501 39,171,730 27,379,052 2,945,161 0 0 0 0 5,694,540 102,501 0 39,171,730 3,844,810 469,779 0 245,036 2,440,036 953,211 0 283,000 96,000 187,000 0 0 0 187,000 1.40 1.40 28,306,416 2,440,036 0 321,421 4,043,957 27,379,052 0
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