-----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, FrszWUQPUtKJRzl9ywXry+3OS7JeofKH7nOkfsaZfnoLl6T7jJ7wvYbhJA5ixuh+ UZDpAaS+r8NFBWnfUiRItA== 0000950123-98-006607.txt : 19980720 0000950123-98-006607.hdr.sgml : 19980720 ACCESSION NUMBER: 0000950123-98-006607 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 19980530 FILED AS OF DATE: 19980714 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: NAUTICA ENTERPRISES INC CENTRAL INDEX KEY: 0000093736 STANDARD INDUSTRIAL CLASSIFICATION: MEN'S & BOYS' FURNISHINGS, WORK CLOTHING, AND ALLIED GARMENTS [2320] IRS NUMBER: 952431048 STATE OF INCORPORATION: DE FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-06708 FILM NUMBER: 98665524 BUSINESS ADDRESS: STREET 1: 40 WEST 57TH STREET CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 2125415990 MAIL ADDRESS: STREET 1: 40 W 57TH STREET CITY: NEW YORK STATE: NY ZIP: 10019 FORMER COMPANY: FORMER CONFORMED NAME: STATE O MAINE INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: PACIFIC COAST KNITTING MILLS INC DATE OF NAME CHANGE: 19751124 10-Q 1 NAUTICA ENTERPRISES, INC. 1 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 May 30, 1998 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 0-6708 Nautica Enterprises, Inc. (Exact Name of Registrant as Specified in Its Charter) Delaware 95-2431048 (State or Other Jurisdiction of (I.R.S. Employer Incorporation or Organization) Identification No.) 40 West 57th Street, New York, N.Y. 10019 (Address of Principal Executive Offices) (Zip Code) Registrant's Telephone Number, including Area Code (212)541-5757 Fiscal year changed from 2/28 to a 52/53 week year. (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 ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13, or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court Yes / / No / / APPLICABLE ONLY TO CORPORATE ISSUERS The number of shares of Common Stock outstanding as of July 14, 1998 was 39,465,621. 2 INDEX Page No. Part I - Financial Information: Item 1. Financial Statements (Unaudited): Condensed Consolidated Balance Sheets As at May 30, 1998 and February 28, 1998..............................................................2 Condensed Consolidated Statements of Earnings For the Three Month Periods Ended May 30, 1998 and May 31, 1997...........................3 Condensed Consolidated Statements of Cash Flows For the Three Month Periods Ended May 30, 1998 and May 31, 1997...........................4 Notes to Condensed Consolidated Financial Statements..................5 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.....................................7 Part II - Other Information...................................................10 3 NAUTICA ENTERPRISES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share data)
ASSETS (unaudited) May 30, February 28, 1998 1998 -------- -------- Current assets: Cash and cash equivalents $ 50,066 $ 34,616 Short-term investments 53,292 52,680 Accounts receivable - net 57,497 81,135 Inventories 85,641 66,726 Prepaid expenses and other current assets 8,371 4,882 Deferred tax benefit 6,130 6,093 -------- -------- Total current assets 260,997 246,132 Property, plant and equipment, net of accumulated depreciation and amortization 60,878 56,273 Other assets 8,600 8,046 -------- -------- $330,475 $310,451 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current maturities of long-term debt $ 50 $ 50 Accounts payable - trade 31,470 18,743 Accrued expenses and other current liabilities 28,906 34,158 Income taxes payable 8,399 5,826 -------- -------- Total current liabilities 68,825 58,777 Long-term debt -net 50 100 Minority Interest 89 405 Stockholders' equity: Preferred stock - par value $.01, authorized, 2,000,000 shares; no shares issued Common stock - par value $.10, authorized, 100,000,000 shares; issued 42,526,000 shares at May 30, 1998 and 42,443,000 shares at February 28, 1998 4,253 4,244 Additional paid-in capital 65,415 64,932 Retained earnings 227,024 217,174 -------- -------- 296,692 286,350 Less: Common stock in treasury - at cost; 3,070,000 shares at May 30, 1998 and February 28, 1998 35,181 35,181 -------- -------- Total stockholders' equity 261,511 251,169 -------- -------- $330,475 $310,451 ======== ========
The accompanying notes are an integral part of these statements. -2- 4 NAUTICA ENTERPRISES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Amounts in thousands, except share data)
(unaudited) Three Months Three Months Ended Ended May 30, 1998 May 31, 1997 ------------ ------------ Net Sales $ 110,980 $ 95,807 Cost of goods sold 59,226 51,488 ------------ ------------ Gross profit 51,754 44,319 Selling, general and administrative expenses 38,815 33,772 Net royalty income (1,613) (1,195) ------------ ------------ Operating profit 14,552 11,742 Investment income, net 1,410 809 Minority interest in consolidated subsidiary 317 233 ------------ ------------ Earnings before provision for income taxes 16,279 12,784 Provision for income taxes 6,430 5,113 ------------ ------------ NET EARNINGS $ 9,849 $ 7,671 ============ ============ Net earnings per share of common stock Basic $ 0.25 $ 0.20 ============ ============ Diluted $ 0.23 $ 0.18 ============ ============ Weighted average number of common shares outstanding Basic 39,419,000 39,255,000 ============ ============ Diluted 41,981,000 41,969,000 ============ ============ Cash dividends per common share none none ============ ============
The accompanying notes are an integral part of these statements. -3- 5 NAUTICA ENTERPRISES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands)
(unaudited) Three Months Three Months Ended Ended May 30, 1998 May 31, 1997 -------- -------- CASH FLOWS FROM OPERATING ACTIVITIES Net earnings $ 9,849 $ 7,671 -------- -------- Adjustments to reconcile net earnings to net cash provided by operating activities: Minority interest in consolidated subsidiary (317) (233) Depreciation and amortization 2,807 2,089 Provision for accounts receivable allowances and sales returns and discounts 779 436 Changes in operating assets and liabilities Accounts receivable 22,859 7,244 Inventories (18,915) (12,098) Prepaid expenses and other current assets (3,489) (240) Other assets (737) (1,599) Accounts payable - trade 12,727 8,752 Accrued expenses and other current liabilities (5,252) 699 Income taxes payable 2,573 3,755 -------- -------- Total adjustments 13,035 8,805 -------- -------- Net cash provided by operating activities 22,884 16,476 -------- -------- CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment (7,229) (5,141) Purchase of short-term investments (650) (25,100) -------- -------- Net cash used in investing activities (7,879) (30,241) -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES Principal payments on long-term debt (50) (50) Purchase of treasury stock -- (17,872) Proceeds from issuance of common stock, net 495 28 -------- -------- Net cash provided by (used in) financing activities 445 (17,894) -------- -------- Increase (decrease) in cash and cash equivalents 15,450 (31,659) Cash and cash equivalents at beginning of period 34,616 71,887 -------- -------- Cash and cash equivalents at end of period $ 50,066 $ 40,228 -------- -------- Supplemental Information: Cash payments for the periods ended: Income taxes $ 3,838 $ 1,367 -------- --------
The accompanying notes are an integral part of these statements. -4- 6 NAUTICA ENTERPRISES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MAY 30, 1998 (Unaudited) NOTE 1 - The accompanying financial statements have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. These statements include all adjustments, consisting only of normal recurring accruals, considered necessary for a fair presentation of financial position and results of operations. The financial statements included herein should be read in conjunction with the financial statements and notes thereto included in the latest annual report on Form 10-K. NOTE 2 - Effective March 1, 1998, the Company changed its fiscal year end to a 52/53 week year. There was no impact on the results of operations. NOTE 3 - The results of operations for the three month period ended May 30, 1998 are not necessarily indicative of the results to be expected for the full year. NOTE 4 - The Company utilized the last-in, first-out "Lifo" method for inventories as at May 30, 1998 and February 28, 1998 and for the three month periods ended May 30, 1998 and May 31, 1997. The "Lifo" inventory for the three month periods ended May 30, 1998 and May 31, 1997 are based upon end of year estimates. Inventories at May 30, 1998 and February 28, 1998 consist primarily of finished goods. NOTE 5 - On March 1, 1998, the Company adopted Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive Income," which requires companies to report certain changes in equity during a period, as comprehensive income, which includes net earnings and the effects of changes in unrealized gains and losses on securities, as follows:
Three Months Three Months ended ended (AMOUNTS IN THOUSANDS) May 30, 1998 May 31, 1997 ------- ------- Net earnings $ 9,849 $ 7,671 Changes in unrealized gains and losses on securities, net of tax (57) 0 ------- ------- Comprehensive Income $ 9,792 $ 7,671 ======= =======
-5- 7 NAUTICA ENTERPRISES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) MAY 30, 1998 (Unaudited) NOTE 6 - Short-term investments consist primarily of government and agency bonds, tax exempt municipal bonds and corporate bonds. At May 30, 1998, all securities were designated as available for sale. As of May 30, 1998, gross unrealized gains of $262,000 and gross unrealized losses of $20,000 (less deferred tax of $97,000) were credited to stockholders' equity. For the three month period ended May 30, 1998, gross realized gains and losses on sales of investments totaled $61,000 and $27,000, respectively. NOTE 7 - Basic net earnings per share excludes dilution and is computed by dividing income available to common shareholders by the weighted-average common shares outstanding for the period. Diluted net earnings per share reflects the weighted-average common shares outstanding plus the potential dilutive effect of options which are convertible into common shares. The effect of stock options which were excluded from the calculation of diluted weighted-average shares was not material to the financial statements. NOTE 8 - During 1997, the FASB issued SFAS No. 131 "Disclosures about Segments of an Enterprise and Related Information". Adoption of this statement will not impact the Company's consolidated financial position, results of operations or cash flows, and will be limited to the form and content of its disclosures. This statement is effective for fiscal years beginning after December 15, 1997. In accordance with SFAS No. 131, the Company has elected to defer the initial application until the fiscal year end. -6- 8 NAUTICA ENTERPRISES, INC. AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS MAY 30, 1998 (Unaudited) RESULTS OF OPERATIONS For the Three Months Ended May 30, 1998: Net sales increased 16% to $111.0 million in the three months ended May 30, 1998 from $95.8 million in the comparable prior year period. This increase is the result of increased sales of Nautica products. Wholesale sales increased due to the expansion of Nautica's in-store shop program, including both new and existing shops. Nautica retail sales increased as a result of opening additional outlet stores and increased sales at existing stores. The increase in sales is due primarily to increased unit volume rather than price increases. Gross profit for the period was 46.6% compared to 46.3% in the comparable prior year period. The increase resulted primarily from a shift to the higher margin Nautica wholesale products and to an increase in retail outlet store sales. Selling, general and administrative expenses as a percentage of net sales decreased to 35.0% from 35.3% in the comparable prior year period. The net decrease resulted from the ability to leverage these expenses with increased sales volume. Net royalty income increased by $418,000 to $1,613,000 from $1,195,000 in the comparable prior year period. The increased royalty revenue was generated from both new and existing licensees. Investment income increased by $601,000 to $1,410,000 from $809,000 in the comparable prior year period. The increase is primarily the result of higher average cash balances and higher rates of return on investments. The provision for income taxes decreased to 39.5% from 40.0% of earnings before income taxes in the comparable prior year period. The decrease is due primarily to a reduction in the effective state income tax rates. Net earnings increased 28% to $9.8 million from $7.7 million in the comparable prior year period as a result of the factors discussed above. -7- 9 LIQUIDITY AND CAPITAL RESOURCES During the three months ended May 30, 1998, the Company generated cash from operating activities of $22.9 million principally from net earnings and higher cash receipts from increased sales. Increases in inventories of $18.9 million, resulting from increased sales levels, were financed principally by cash generated from net earnings, increases in accounts payable-trade and decreases in accounts receivable. During the three months ended May 31, 1997, the Company generated cash from operating activities of $16.5 million principally from net earnings and higher cash receipts from increased sales. Increases in inventories of $12.1 million, resulting from increased sales levels, were financed by cash generated from net earnings, increases in accounts payable-trade and decreases in accounts receivable. During the three months ended May 30, 1998, the Company's principal investing activities related to the continued expansion of the Nautica in-store shop program and amounts related to the expansion of showroom space. The Company expects to continue to incur capital expenditures to expand such in-store shop program. At May 30, 1998, there were no other material commitments for capital expenditures. During the year ended February 28, 1998, the Board of Directors approved a stock repurchase program, authorizing the Company to repurchase up to 1,000,000 shares of its common stock. There were no repurchases made during the three months ending May 30, 1998. During the three months ended May 31, 1997, the Company repurchased 800,000 shares of its common stock at an aggregate cost of $17.9 million. The Company has $100.0 million in lines of credit with two commercial banks available for short-term borrowings and letters of credit. These lines are collateralized by imported inventory and accounts receivable. At May 30, 1998 and February 28, 1998, respectively, letters of credit outstanding under the lines were $52.7 million and $42.3 million and there were no short-term borrowings outstanding. Historically, the Company has experienced its lowest level of sales in the first quarter and its highest level in the third quarter. This pattern has resulted primarily from the timing of shipments to retail customers for spring and fall seasons. In the future, the timing of seasonal shipments may vary by quarter. INFLATION AND CURRENCY FLUCTUATIONS The Company believes that inflation and the effect of fluctuations of the dollar against foreign currencies have not had a material effect on the cost of imports or the Company's results of operations. -8- 10 YEAR 2000 The Company recognizes the need to ensure that its systems, applications and hardware will recognize and process transactions for the year 2000 and beyond. The Company expects to implement successfully the systems and programming changes necessary to address year 2000 issues with respect to its internal systems and does not believe that the cost of such actions will have a material adverse effect on its results of operations or financial condition. The Company also has initiated discussions with its significant suppliers, customers and financial institutions to ensure that those parties have appropriate plans to remediate year 2000 issues when their systems interface with the Company's systems or may otherwise impact operations. Although the Company is not aware of any material operational issues or costs associated with preparing its internal systems for the year 2000, there can be no assurance that there will not be a delay in, or increased costs associated with, the implementation of the necessary systems and changes to address the year 2000 issues. The Company and its' significant suppliers, customers, and financial institutions' inability to implement such systems and changes could have an adverse effect on future results of operations. FORWARD-LOOKING AND CAUTIONARY STATEMENTS Certain statements included in this report, including the words "believes," "anticipates," "expects" and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof. The Company undertakes no obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Readers are also urged to carefully review and consider the various disclosures made by the Company in this report, as well as the Company's periodic reports on Forms 10-K and 10-Q and other filings with the Securities and Exchange Commission. NEW ACCOUNTING PRONOUNCEMENTS During 1997, the FASB issued SFAS No. 131 "Disclosures about Segments of an Enterprise and Related Information". Adoption of this statement will not impact the Company's consolidated financial position, results of operations or cash flows, and will be limited to the form and content of its disclosures. This statement is effective for fiscal years beginning after December 15, 1997. In accordance with SFAS No. 131, the Company has elected to defer the initial application until the fiscal year end. -9- 11 PART II OTHER INFORMATION Items I through 9. - All items are inapplicable except: Item 6. Exhibits and Reports on Form 8-K (a) Exhibit 27. Financial Data Schedule (b) Reports on Form 8-K. None -10- 12 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. NAUTICA ENTERPRISES, INC. By: s/Harvey Sanders ----------------------------------- Harvey Sanders Chairman of the Board and President Date: July 14, 1998 By: s/Neal S. Nackman ----------------------------------- Neal S. Nackman V.P. Finance and Chief Accounting Officer Date: July 14, 1998 -11- EX-27.1 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED STATEMENTS OF THE COMPANY AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS FEB-27-1999 MAR-01-1998 MAY-30-1998 50,066 53,292 60,342 2,845 85,641 8,371 86,094 25,216 330,475 68,825 0 0 0 4,253 257,258 330,475 110,980 114,003 59,226 59,226 0 0 0 16,279 6,430 9,849 0 0 0 9,849 0.25 0.23
EX-27.2 3 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED STATEMENTS OF THE COMPANY AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 9-MOS 6-MOS 3-MOS FEB-28-1998 FEB-28-1998 FEB-28-1998 MAR-01-1997 MAR-01-1997 MAR-01-1997 NOV-30-1997 AUG-31-1997 MAY-31-1997 5,594,842 3,224,993 40,227,769 58,462,684 34,749,980 25,100,000 98,306,683 92,388,608 54,569,239 2,077,950 1,318,643 1,677,948 68,159,266 87,579,727 73,402,462 241,568,128 228,462,920 4,546,832 76,388,709 68,664,774 63,851,139 22,468,348 20,264,568 17,830,492 303,308,068 281,885,760 254,142,316 72,438,739 73,123,911 60,811,031 0 0 0 0 0 0 0 0 0 4,235,804 4,181,384 4,177,464 226,149,495 203,881,525 188,776,601 303,308,068 281,885,760 254,142,316 373,780,791 228,067,042 95,807,047 380,265,914 231,856,308 97,811,234 198,003,835 122,368,139 51,488,057 198,003,835 122,368,139 51,488,057 0 0 0 0 0 0 0 0 0 70,935,789 37,631,749 12,784,312 28,344,316 15,052,700 5,113,725 42,591,473 22,579,049 7,670,587 0 0 0 0 0 0 0 0 0 42,591,473 22,579,049 7,670,587 1.10 0.59 0.20 1.02 0.54 0.18 The above schedule is restated to reflect the retroactive adoption of SFAS 128.
EX-27.3 4 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED STATEMENTS OF THE COMPANY AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. YEAR 9-MOS 6-MOS 3-MOS FEB-28-1997 FEB-28-1997 FEB-28-1997 FEB-28-1997 MAR-01-1996 MAR-01-1996 MAR-01-1996 MAR-01-1996 FEB-28-1997 NOV-30-1996 AUG-31-1996 MAY-31-1996 71,887,201 77,864,927 55,096,454 65,843,003 0 0 0 0 63,330,809 75,686,984 69,109,376 44,440,371 2,759,000 1,418,553 1,318,643 1,120,000 61,304,697 57,391,563 67,064,154 65,520,529 203,845,166 3,906,173 198,014,409 182,430,601 58,710,285 54,147,125 51,282,543 45,699,207 15,991,032 15,498,551 13,875,870 12,372,816 251,393,082 260,563,174 244,937,679 224,595,515 47,605,061 53,564,659 54,269,587 45,462,105 0 0 150,000 150,000 0 0 0 0 0 0 0 0 4,177,084 4,174,479 4,160,108 4,149,873 198,950,780 203,224,596 186,357,984 174,833,537 251,393,082 260,563,174 244,937,679 224,595,515 386,560,311 296,050,473 179,480,714 76,137,760 393,398,520 298,859,891 181,063,115 77,621,799 205,552,685 159,645,282 97,783,152 41,519,954 205,552,685 159,645,282 97,783,152 41,519,954 0 0 0 0 0 0 0 0 0 0 0 0 72,330,546 54,517,227 27,910,498 9,052,009 28,600,050 21,806,891 11,164,200 3,620,800 44,040,339 32,710,336 16,746,298 5,431,209 0 0 0 0 0 0 0 0 0 0 0 0 44,040,339 32,710,336 16,746,298 5,431,209 1.10 0.82 0.42 0.14 1.02 0.76 0.39 0.13 The above schedule is restated to reflect the retroactive adoption of SFAS 128.
EX-27.4 5 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED STATEMENTS OF THE COMPANY AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. YEAR FEB-29-1996 MAR-01-1995 FEB-29-1996 61,047,522 0 46,768,169 1,064,000 54,235,489 169,913,790 41,722,855 11,010,753 209,339,849 36,001,561 200,000 4,135,480 0 169,002,808 209,339,849 302,541,175 307,347,109 165,462,039 165,462,039 0 0 828,899 0 52,934,274 20,947,964 31,986,310 0 0 0 31,986,310 0.81 0.76 The above schedule is restated to reflect the retroactive adoption of SFAS 128.
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