-----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, RVNGSZzeu0FhaGIySZHjqzgiB+DR+AsbOIO9yXcjIskiyjuT7hnmoCp0uQBVlZuX KexYQUhRDiCm810CTrgClg== 0000096021-99-000003.txt : 19990208 0000096021-99-000003.hdr.sgml : 19990208 ACCESSION NUMBER: 0000096021-99-000003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19981226 FILED AS OF DATE: 19990205 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SYSCO CORP CENTRAL INDEX KEY: 0000096021 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-GROCERIES & RELATED PRODUCTS [5140] IRS NUMBER: 741648137 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-06544 FILM NUMBER: 99522027 BUSINESS ADDRESS: STREET 1: 1390 ENCLAVE PKWY CITY: HOUSTON STATE: TX ZIP: 77077 BUSINESS PHONE: 7135841390 10-Q 1 2ND QUARTER 10-Q Page 1 of 18 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 26, 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 1-6544 SYSCO CORPORATION (Exact name of registrant as specified in its charter) Delaware 74-1648137 (State or other jurisdiction of (IRS Employer Identification No.) incorporation or organization) 1390 Enclave Parkway Houston, Texas 77077-2099 (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code: (281) 584-1390 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 [ ] 332,929,393 shares of common stock were outstanding as of January 22, 1999. 2 PART I. FINANCIAL INFORMATION --------------------------------------------------- Item 1. Financial Statements The following consolidated financial statements have been prepared by the Company, without audit, with the exception of the June 27, 1998, consolidated balance sheet which was taken from the audited financial statements included in the Company's Fiscal 1998 Annual Report on Form 10-K. The financial statements include consolidated balance sheets, consolidated results of operations and consolidated cash flows. In the opinion of management, all adjustments, which consist of normal recurring adjustments, necessary to present fairly the financial position, results of operations and cash flows for all periods presented, have been made. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Fiscal 1998 Annual Report on Form 10-K. A review of the financial information herein has been made by Arthur Andersen LLP, independent public accountants, in accordance with established professional standards and procedures for such a review. A letter from Arthur Andersen LLP concerning their review is included as Exhibit 15. 3 SYSCO CORPORATION and its Consolidated Subsidiaries CONSOLIDATED BALANCE SHEETS (In Thousands Except for Share Data)
Dec. 26, June 27, Dec. 27, 1998 1998 1997 ---------- --------- ----------- (Unaudited) (Audited) (Unaudited) ASSETS ---------- Current assets Cash $ 109,246 $ 110,288 $ 99,824 Accounts and notes receivable, less allowances of $35,539, $20,081 and $29,843 1,310,972 1,215,610 1,195,930 Inventories 888,088 790,501 810,192 Deferred taxes 34,757 37,073 27,738 Prepaid expenses 27,934 26,595 24,198 ---------- ---------- ---------- Total current assets 2,370,997 2,180,067 2,157,882 Plant and equipment at cost, less depreciation 1,196,871 1,151,054 1,097,718 Goodwill and intangibles, less amortization 306,931 307,959 243,496 Other assets 156,330 141,109 131,427 ---------- ---------- ---------- Total other assets 463,261 449,068 374,923 ---------- ---------- ---------- Total assets $4,031,129 $3,780,189 $3,630,523 ========== ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY ------------------------------------ Current liabilities Notes payable $ 10,812 $ 42,333 $ 24,912 Accounts payable 1,001,364 849,159 900,433 Accrued expenses 279,951 292,255 235,755 Accrued income taxes 5,274 25,523 10,968 Current maturities of long-term debt 115,387 114,920 15,289 ---------- --------- ---------- Total current liabilities 1,412,788 1,324,190 1,187,357 Long-term debt 975,496 867,017 829,152 Deferred taxes 224,548 232,193 218,152 Shareholders' equity Preferred stock, par value $1 per share Authorized 1,500,000 shares, issued none --- --- --- Common stock, par value $1 per share Authorized 500,000,000 shares, issued 382,587,450, 382,587,450 and 191,293,725 shares 382,587 382,587 191,294 Paid-in capital 1,524 --- 30,842 Retained earnings 1,909,068 1,796,488 1,855,697 ---------- ---------- ---------- 2,293,179 2,179,075 2,077,833 Less cost of treasury stock, 49,271,826, 47,578,288 and 20,999,811 shares 874,882 822,286 681,971 ---------- ---------- ---------- Total shareholders' equity 1,418,297 1,356,789 1,395,862 ---------- ---------- ---------- Total liabilities and shareholders' equity $4,031,129 $3,780,189 $3,630,523 ========== ========== ========== Note: The June 27, 1998 balance sheet has been taken from the audited financial statements at that date. Share information has been adjusted for the 2-for-1 stock split on March 20, 1998. 4 SYSCO CORPORATION and its Consolidated Subsidiaries CONSOLIDATED RESULTS OF OPERATIONS (Unaudited) (In Thousands Except for Share Data) 26-Week Period Ended 13-Week Period Ended ---------------------------- ----------------------------- Dec. 26, Dec. 27, Dec. 26, Dec. 27, 1998 1997 1998 1997 ------------ ------------ ------------ -------------- Sales $ 8,439,305 $ 7,614,340 $ 4,246,675 $ 3,786,096 Costs and expenses Cost of sales 6,895,541 6,213,796 3,469,496 3,082,913 Operating expenses 1,224,711 1,104,921 616,899 551,889 Interest expense 35,328 27,640 18,397 14,500 Other, net 415 (425) 245 (303) ------------ ----------- ------------ ------------ Total costs and expenses 8,155,995 7,345,932 4,105,037 3,648,999 ------------ ----------- ------------ ------------ Earnings before income taxes 283,310 268,408 141,638 137,097 Income taxes 110,491 104,679 55,239 53,468 ------------ ------------ ------------ ------------ Earnings before cumulative effect of accounting change 172,819 163,729 86,399 83,629 Cumulative effect of accounting change --- (28,053) --- (28,053) ____________ ____________ ____________ ____________ Net earnings $ 172,819 $ 135,676 $ 86,399 $ 55,576 ============ ============ ============ ============ Earnings before accounting change: Basic earnings per share $ 0.52 $ 0.48 $ 0.26 $ 0.24 ============ ============ ============ ============ Diluted earnings per share $ 0.51 $ 0.47 $ 0.26 $ 0.24 ============ ============ ============ ============ Cumulative effect of accounting change: Basic earnings per share $ --- $ (0.08) $ --- $ (0.08) ============ ============ ============ ============ Diluted earnings per share $ --- $ (0.08) $ --- $ (0.08) ============ ============ ============ ============ Net earnings: Basic earnings per share $ 0.52 $ 0.40 $ 0.26 $ 0.16 ============ ============ ============ ============ Diluted earnings per share $ 0.51 $ 0.39 $ 0.26 $ 0.16 ============ ============ ============ ============ Average shares outstanding 334,367,309 342,635,724 333,885,574 341,586,846 ============ ============ ============ ============ Diluted average shares outstanding 338,039,496 345,142,436 337,894,965 344,559,666 ============ ============ ============ ============ Dividends paid per common share $ 0.18 $ 0.16 $ 0.09 $ 0.08 ============ ============ ============ ============ Note: All share information has been adjusted for the 2-for-1 stock split on March 20, 1998. 5 SYSCO CORPORATION and its Consolidated Subsidiaries CONSOLIDATED CASH FLOWS - (Unaudited) (In Thousands) 26- Week Period Ended ------------------------ Dec. 26, Dec. 27, 1998 1997 -------- --------- Operating activities: Net earnings $ 172,819 $ 135,676 Add non-cash items: Cumulative effect of accounting change --- 28,053 Depreciation and amortization 98,093 87,569 Deferred tax (benefit) (5,329) (19,783) Provision for losses on accounts receivable 11,893 9,732 Additional investment in certain assets and liabilities: (Increase) in receivables (107,255) (140,660) (Increase) in inventories (97,587) (76,410) (Increase) in prepaid expenses (1,339) (2,769) Increase in accounts payable 152,205 72,840 (Decrease) in accrued expenses (12,304) (5,173) (Decrease) in accrued income taxes (20,249) (6,773) (Increase) decrease in other assets (21,063) 1,481 -------- -------- Net cash provided by operating activities 169,884 83,783 -------- -------- Investing activities: Additions to plant and equipment (147,589) (121,042) Sales and retirements of plant and equipment 10,549 3,492 -------- -------- Net cash used for investing activities (137,040) (117,550) -------- -------- Financing activities: Bank and commercial paper (repayments) borrowings (142,366) 155,457 Other debt borrowings 219,791 724 Common stock reissued from treasury 22,175 20,863 Treasury stock purchases (73,247) (109,622) Dividends paid (60,239) (51,527) -------- -------- Net cash (used for) provided by financing activities (33,886) 15,895 -------- -------- Net (decrease) in cash (1,042) (17,872) Cash at beginning of period 110,288 117,696 -------- -------- Cash at end of period $ 109,246 $ 99,824 ======== ======== Supplemental disclosures of cash flow information: Cash paid during the period for: Interest $ 29,331 $ 27,263 Income taxes 130,244 112,294 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources ------------------------------- The liquidity and capital resources discussion included on page 12 of the Company's Fiscal 1998 Annual Report on Form 10-K remains applicable, other than the common stock repurchase program described below. All share information has been adjusted for the 2-for-1 stock split on March 20, 1998. In Fiscal 1992, the Company began a common stock repurchase program which continued into the first quarter of Fiscal 1999, resulting in the repurchase of 72,000,000 shares of common stock. The Board of Directors authorized the repurchase of an additional 8,000,000 shares in September, 1998. Under this latest authorization, 2,617,100 shares were purchased through January 22, 1999. Results of Operations --------------------- Sales increased 10.8% during the 26 weeks and 12.2% in the second quarter of Fiscal 1999 over comparable periods of the prior year. Cost of sales also increased 11.0% during the 26 weeks and 12.5% in the second quarter of Fiscal 1999 which is in line with the sales increases. Real sales growth for the 26 weeks of Fiscal 1999 of about 7.4% resulted primarily from volume growth and was over two points higher than the same period last year, after adjusting for a 1.4% increase due to acquisitions and an increase due to food cost inflation of about 2%, due primarily to higher cost of dairy and poultry products. Real growth for the quarter was 8.8%, after adjusting 1.3% for acquisitions and 2.2% for food cost inflation. Operating expenses for the periods presented remained approximately the same as a percent of sales. Interest expense in the current period increased over the prior period due to increased borrowings. Income taxes for the periods presented reflect an effective rate of 39%. 7 Pretax earnings and net earnings increased about 6% for the 26 weeks and 3% for the quarter before the accounting change in the same periods of the previous year. The increases were due to the factors discussed above as well as the Company's continued efforts to increase sales to the Company's higher margin territorial street customers. Basic and diluted earnings per share increased 8.3% and 8.5%, respectively, for the 26 weeks and 8.3% and 8.3%, respectively, for the quarter before the accounting change in the same periods of the previous year. The increases were caused by the factors discussed above, along with the decrease in average shares outstanding for the periods presented, reflecting purchases of shares made through the Company's share repurchase program. A reconciliation of basic and diluted earnings per share follows on the next page. For the period ended December 27, 1997, the Company recorded a one-time, after-tax, non-cash charge of $28 million to comply with a new consensus ruling by the Emerging Issues Task Force of the Financial Accounting Standards Board (EITF Issue No. 97-13), requiring reengineering costs associated with computer system development to be expensed as they are incurred. Prior to this change, the Company had capitalized business process reengineering costs incurred in connection with its SYSCO Uniform Systems information systems redevelopment project in accordance with generally accepted accounting principles. 8 The following table sets forth the computation of basic and diluted earnings per share: 26-Week Period Ended 13-Week Period Ended ============================== =============================== Dec. 26, Dec. 27, Dec. 26, Dec. 27, 1998 1997 1998 1997 ============= ============= ============= ============== Numerator: Numerator for basic earnings per share--income available to common shareholders $ 172,819,000 $ 135,676,000 $ 86,420,000 $ 55,576,000 Effect of dilutive securities - - - - - - - - - - - - ------------- ------------- ------------- -------------- Numerator for diluted earnings per share -- income available to common shareholders $ 172,819,000 $ 135,676,000 $ 86,420,000 $ 55,576,000 ============= ============= ============= ============== Denominator: Denominator for basic earnings per share -- weighted-average shares 334,367,309 342,635,724 333,885,574 341,586,846 Effect of dilutive securities: Employee and director stock options 3,672,187 2,506,712 4,009,391 2,972,820 ------------- ------------- ------------- -------------- Denominator for diluted earnings per share -- adjusted weighted-average shares and assumed conversions 338,039,496 345,142,436 337,894,965 344,559,666 ============= ============= ============= ============== Basic earnings per share $ 0.52 $ 0.40 $ 0.26 $ 0.16 ============= ============= ============= ============== Diluted earnings per share $ 0.51 $ 0.39 $ 0.26 $ 0.16 ============= ============= ============= ============== 9 Year 2000 --------- In recent years, SYSCO has been replacing and enhancing its information systems to gain operational efficiencies. In addition, a company-wide program has been underway to prepare its information systems and applications for the year 2000. SYSCO has completed a comprehensive assessment of the impact of the year 2000 on all of its information systems and applications. SYSCO expects to make the necessary revisions or upgrades to its systems to render it year 2000 compliant. Attention is also being focused on compliance attainment efforts of, and key interfaces with, suppliers and customers. SYSCO could potentially experience disruptions to some aspects of its various activities and operations as a result of non-compliant systems utilized by SYSCO or unrelated third parties. Contingency plans are therefore under development to mitigate the extent of any such potential disruption to business operations. Based on preliminary information, the costs to the Company of addressing potential year 2000 issues are not expected to have a material adverse impact on SYSCO's consolidated results of operations or financial position. There can be no assurance that the efforts or the contingency plans related to the Company's systems, or those of other entities relied upon, will be successful or that any failure to convert, upgrade or appropriately plan for contingencies would not have a material adverse effect on SYSCO. -------------- Statements made herein regarding continuation of the share repurchase program and potential year 2000 costs are forward-looking statements under the Private Securities Litigation Reform Act of 1995. They are based on current expectations and actual results may differ materially. Share repurchases could be affected by market prices of the Company's stock as well as management's decision to utilize its capital for other purposes. Potential year 2000 costs could be affected by conditions in the economy, the industry and internal factors that may alter planned results. Futhermore, potential year 2000 costs and compliance efforts could be affected by the ability of SYSCO's suppliers and customers to effectively address year 2000 issues. 10 PART II. OTHER INFORMATION --------------------------- Item 3. Quantitative and Qualitative Disclosures about Market Risks SYSCO does not utilize financial instruments for trading purposes and holds no derivative financial instruments which could expose the company to significant market risk. SYSCO's exposure to market risk for changes in interest rates relates primarily to its long-term obligations. At December 26, 1998 the Company had outstanding $183,953,000 of commercial paper with maturities through December 30, 1998. The Company's remaining long-term debt obligations of $791,543,000 were primarily at fixed rates of interest. SYSCO has no significant cash flow exposure due to interest rate changes for long-term debt obligations. Item 4. Submission of Matters to a Vote of Security Holders The Company's Annual Meeting of Stockholders was held on November 6, 1998 ("1998 Annual Meeting"). At the 1998 Annual Meeting the following persons were elected to serve as directors of the Company for three year terms: Gordon M. Bethune, Colin G. Campbell, Frank A. Godchaux III, Frank H. Richardson and John F. Woodhouse. The terms of the following persons as directors of the Company continued after the 1998 Annual Meeting: John W. Anderson, Charles H. Cotros, Judith B. Craven, Jonathan Golden, Bill M. Lindig, Richard G. Merrill, Richard J. Schnieders, Phyllis S. Sewell, Arthur J. Swenka and Thomas B. Walker. At the 1998 Annual Meeting, the stockholders voted upon the election of directors as noted above, and on the approval of the SYSCO Corporation Non-Employee Directors Stock Plan. 11 The results of such vote were as follows: Number of Votes Cast ------------------------------------------------------- Withheld and Broker Matter Voted Upon For Against Abstained Non-votes ----------------- ----------- ---------- ------------ --------- Election as Director: Gordon M. Bethune 290,424,891 N/A 4,342,512 None Colin G. Campbell 291,743,686 N/A 3,023,717 None Frank A. Godchaux III 291,373,252 N/A 3,394,151 None Frank H. Richardson 291,571,298 N/A 3,196,105 None John F. Woodhouse 291,772,113 N/A 2,995,290 None Approval of the Sysco Corporation Non-Employee Directors Stock Plan 280,140,811 14,626,592 N/A None Item 5. Other Information None 12 PART II. OTHER INFORMATION --------------------------- Item 6. Exhibits and Reports on Form 8-K (a) Exhibits. 3(a) Restated Certificate of Incorporation incorporated by reference to Form 10-K for the year ended June 28, 1997. 3(b) Bylaws, as amended, incorporated by reference to Form 10-K for the year ended July 2, 1994. 3(c) Amended Certificate of Designation, incorporated by reference to Form 10-K for the year ended June 29, 1996. 4(a) Seventh Amendment and Restatement of Competitive Advance and Revolving Credit Facility Agreement dated as of June 27, 1997 incorporated by reference to Form 10-K for the year ended June 28, 1997. 4(b) Sysco Corporation Note Agreement dated as of June 1, 1989 incorporated by reference to Form 10-K for the year ended June 28, 1997. 4(c) Indenture, dated as of June 15, 1995, between Sysco Corporation and First Union National Bank of North Carolina, Trustee, incorporated by reference to Registration Statement on Form S-3 (File No. 33-60023). 4(d) First Supplemental Indenture, dated as of June 27, 1995, between Sysco Corporation and First Union Bank of North Carolina, Trustee as amended, incorporated by reference to Form 10-K for the year ended June 29, 1996. 4(e) Second Supplemental Indenture, dated as of May 1, 1996, between Sysco Corporation and First Union Bank of North Carolina, Trustee as amended, incorporated by reference to Form 10-K for the year ended June 29, 1996. 4(f) Third Supplemental Indenture, dated as of April 25, 1997, between Sysco Corporation and First Union National Bank of North Carolina, Trustee incorporated by reference to Form 10-K for the year ended June 28, 1997. 13 4(g) Fourth Supplemental Indenture, dated as of April 25, 1997, between Sysco Corporation and First Union National Bank of North Carolina, Trustee incorporated by reference to Form 10-K for the year ended June 28, 1997. 4(h) Fifth Supplemental Indenture, dated as of July 27, 1998 between Sysco Corporation and First Union National Bank of North Carolina, Trustee incorporated by reference to Form 10-K for the year ended June 27, 1998. 10(a) Sysco Corporation Non-Employee Directors Stock Plan incorporated by reference to Appendix A of the Company's definitive Proxy Statement filed with the Securities and Exchange Commission September 25, 1998. 15 Letter from Arthur Andersen LLP dated February 5, 1999, re unaudited financial statements. 27 Financial Data Schedule (b) No reports on Form 8-K have been filed during the quarter for which this report is filed. 14 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. SYSCO CORPORATION (Registrant) By /s/ JOHN K. STUBBLEFIELD, JR. ----------------------------- John K. Stubblefield, Jr. Senior Vice President and Chief Financial Officer Date: February 5, 1999 15 EXHIBIT INDEX ---------------------- SEQUENTIAL NO. DESCRIPTION PAGE NUMBER - ----- ----------------------------------------- ------------- 3(a) Restated Certificate of Incorporation incorporated by reference to Form 10-K for the year ended June 28, 1997. 3(b) Bylaws, as amended, incorporated by reference to Form 10-K for the year ended July 2, 1994. 3(c) Amended Certificate of Designation, incorporated by reference to Form 10-K for the year ended June 29, 1996. 4(a) Seventh Amendment and Restatement of Competitive Advance and Revolving Credit Facility Agreement dated as of June 27, 1997 incorporated by reference to Form 10-K for the year ended June 28, 1997. 4(b) Sysco Corporation Note Agreement dated as of June 1, 1989 incorporated by reference to Form 10-K for the year ended June 28, 1997. 4(c) Indenture, dated as of June 15, 1995, between Sysco Corporation and First Union National Bank of North Carolina, Trustee, incorporated by reference to Registration Statement on Form S-3 (File No. 33-60023). 4(d) First Supplemental Indenture, dated as of June 27, 1995, between Sysco Corporation and First Union Bank of North Carolina, Trustee as amended, incorporated by reference to Form 10-K for the year ended June 29, 1996. 16 4(e) Second Supplemental Indenture, dated as of May 1, 1996, between Sysco Corporation and First Union Bank of North Carolina, Trustee as amended, incorporated by reference to Form 10-K for the year ended June 29, 1996. 4(f) Third Supplemental Indenture, dated as of April 25, 1997, between Sysco Corporation and First Union National Bank of North Carolina, Trustee incorporated by reference to Form 10-K for the year ended June 28, 1997. 4(g) Fourth Supplemental Indenture, dated as of April 25, 1997, between Sysco Corporation and First Union National Bank of North Carolina, Trustee incorporated by reference to Form 10-K for the year ended June 28, 1997. 4(h) Fifth Supplemental Indenture, dated as of July 27, 1998 between Sysco Corporation and First Union National Bank of North Carolina, Trustee incorporated by reference to Form 10-K for the year ended June 27, 1998. 10(a) Sysco Corporation Non-Employee Directors Stock Plan incorporated by reference to Appendix A of the Company's definitive Proxy Statement filed with the Securities and Exchange Commission September 25, 1998. 15 Letter from Arthur Andersen LLP dated February 5, 1999, re unaudited financial statements. 17 27 Sysco Corporation and its Consolidated Subsidiaries Financial Data Schedule 18
EX-15 2 AA LETTER 17 Exhibit 15 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To the Board of Directors and Shareholders of Sysco Corporation: We have reviewed the consolidated balance sheet of Sysco Corporation (a Delaware corporation) and its consolidated subsidiaries as of December 26, 1998, and the related consolidated results of operations for the twenty-six and thirteen week periods then ended and consolidated cash flows for the twenty-six week period then ended included in the Company's Quarterly Report on Form 10-Q. These financial statements are the responsibility of the Company's management. We conducted our review in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the financial statements referred to above for them to be in conformity with generally accepted accounting principles. /s/ ARTHUR ANDERSEN LLP Houston, Texas February 5, 1999 18 EX-27 3 ART. 5 FDS FOR 1ST QUARTER 10-Q
5 This schedule contains summary financial information extracted from Item 1. Financial Statements and is qualified in its entirety by reference to such financial statements. 1,000 3-MOS JUL-03-1999 DEC-26-1998 109,246 0 1,346,511 (35,539) 888,088 2,370,997 2,243,757 (1,046,886) 4,031,129 1,412,788 975,496 382,587 0 0 1,035,710 4,031,129 8,439,305 8,439,305 6,895,541 8,155,995 415 11,893 35,328 283,310 110,491 172,819 0 0 0 172,819 0.52 0.51
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