FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the Quarterly Period Ended Commission File
September 30, 1997 Number 1-1550
CHIQUITA BRANDS INTERNATIONAL, INC.
Incorporated under the IRS Employer I.D.
Laws of New Jersey No. 04-1923360
250 East Fifth Street, Cincinnati, Ohio 45202
(513) 784-8000
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, and (2) has been subject to such filing
requirements for the past 90 days. YES X NO
As of October 31, 1997, there were 59,387,082 shares of Common Stock
outstanding.
Page 1 of 13 Pages<PAGE>
CHIQUITA BRANDS INTERNATIONAL, INC.
TABLE OF CONTENTS
Page(s)
PART I - Financial Information
Consolidated Statement of Income for the quarters and
nine months ended September 30, 1997 and 1996 . . . 3
Consolidated Balance Sheet as of September 30, 1997,
December 31, 1996 and September 30, 1996 . . . . . 4
Consolidated Statement of Cash Flow for the nine months
ended September 30, 1997 and 1996 . . . . . . . . . 5
Notes to Consolidated Financial Statements . . . . . 6-7
Management's Analysis of Operations and
Financial Condition . . . . . . . . . . . . . . . . 8-9
PART II - Other Information
Item 1 - Legal Proceedings . . . . . . . . . . . . . 9
Item 2 - Changes in Securities . . . . . . . . . . . 10
Item 6 - Exhibits and Reports on Form 8-K . . . . . . 10
Signature . . . . . . . . . . . . . . . . . . . . . . 11<PAGE>
Part I - Financial Information
<TABLE>
<CAPTION>
CHIQUITA BRANDS INTERNATIONAL, INC.
CONSOLIDATED STATEMENT OF INCOME (Unaudited)
(In thousands, except per share amounts)
Quarter Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
<S> <C> <C> <C> <C>
Net sales $ 556,261 $ 541,581 $ 1,833,904 $ 1,880,085
---------- ---------- ---------- ----------
Operating expenses
Cost of sales 463,993 431,385 1,412,100 1,437,975
Selling, general and administrative 76,267 72,266 223,479 226,820
Depreciation 21,377 22,069 64,418 66,448
---------- ---------- ---------- ----------
561,637 525,720 1,699,997 1,731,243
---------- ---------- ---------- ----------
Operating income (loss) (5,376) 15,861 133,907 148,842
Interest income 3,848 6,965 12,481 21,976
Interest expense (26,704) (30,626) (82,482) (100,742)
Other income, net 217 215 656 656
---------- ---------- ---------- ----------
Income (loss) before income taxes (28,015) (7,585) 64,562 70,732
Income taxes -- -- (8,200) (11,000)
---------- ---------- ---------- ----------
Income (loss) before extraordinary
item (28,015) (7,585) 56,362 59,732
Extraordinary loss from debt
refinancing -- (17,282) -- (22,838)
---------- ---------- ---------- ----------
Net income (loss) $ (28,015) $ (24,867) $ 56,362 $ 36,894
========== ========== ========== ==========
Shares used to calculate earnings
per common share:
Primary 56,388 55,319 56,869 55,741
========== ========== ========== ==========
Fully diluted 56,388 55,319 56,979 55,856
========== ========== ========== ==========
Earnings per common share (primary
and fully diluted):
- Income (loss) before
extraordinary item $ (.57) $ (.20) $ .77 $ .93
- Extraordinary item -- (.31) -- (.41)
---------- ---------- ---------- ----------
- Net income (loss) $ (.57) $ (.51) $ .77 $ .52
========== ========== ========== ==========
Dividends per common share $ .05 $ .05 $ .15 $ .15
========== ========== ========== ==========
</TABLE>
See Notes to Consolidated Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
CHIQUITA BRANDS INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEET (Unaudited)
(In thousands, except share amounts)
September 30, December 31, September 30,
1997 1996 1996
<S> <C> <C> <C>
ASSETS
Current assets
Cash and equivalents $ 172,330 $ 285,558 $ 246,835
Marketable securities -- -- 39,780
Trade receivables (less allowances
of $10,235, $9,832 and $11,164) 203,788 162,566 186,106
Other receivables, net 65,726 91,126 90,050
Inventories 321,616 275,177 283,310
Other current assets 39,595 29,884 32,947
---------- ---------- ----------
Total current assets 803,055 844,311 879,028
Property, plant and equipment, net 1,143,005 1,139,677 1,156,620
Investments and other assets 312,574 319,149 343,864
Intangibles, net 156,564 163,797 164,929
---------- ---------- ----------
Total assets $ 2,415,198 $ 2,466,934 $ 2,544,441
========== ========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Notes and loans payable $ 36,395 $ 78,107 $ 94,488
Long-term debt due within one year 90,430 56,982 51,179
Accounts payable 208,307 193,875 206,337
Accrued liabilities 108,691 135,370 101,036
---------- ---------- ----------
Total current liabilities 443,823 464,334 453,040
Long-term debt of parent company 696,731 704,763 709,478
Long-term debt of subsidiaries 284,615 374,488 368,165
Accrued pension and other employee benefits 87,107 83,797 87,111
Other liabilities 90,246 115,299 110,602
---------- ---------- ----------
Total liabilities 1,602,522 1,742,681 1,728,396
---------- ---------- ----------
Shareholders' equity
Preferred and preference stock 253,239 249,256 249,256
Capital stock, $.33 par value (59,356,568,
55,841,384 and 55,655,675 shares) 19,786 18,614 18,552
Capital surplus 642,881 594,885 592,277
Accumulated deficit (103,230) (138,502) (44,040)
---------- ---------- ----------
Total shareholders' equity 812,676 724,253 816,045
---------- ---------- ----------
Total liabilities and shareholders' equity $ 2,415,198 $ 2,466,934 $ 2,544,441
========== ========== ==========
</TABLE>
See Notes to Consolidated Financial Statements.
<PAGE>
<TABLE>
<CAPTION> CHIQUITA BRANDS INTERNATIONAL, INC.
CONSOLIDATED STATEMENT OF CASH FLOW (Unaudited)
(In thousands)
Nine Months Ended
September 30,
1997 1996
<S> <C> <C>
Cash provided (used) by:
Operations
Income before extraordinary item $ 56,362 $ 59,732
Depreciation and amortization 68,496 71,718
Write-down of Costa Rican banana producing assets -- 8,900
Changes in current assets and liabilities
Receivables (22,262) 231
Inventories (8,757) 10,069
Accounts payable 6,022 44
Other current assets and liabilities (29,716) (25,387)
Other 7,097 7,079
---------- ----------
Cash flow from operations 77,242 132,386
---------- ----------
Investing
Capital expenditures (52,096) (57,637)
Refundable deposits for container equipment (10,351) --
Investment in Japanese joint venture (6,474) --
Restricted cash deposits -- 39,520
Proceeds from disposal of non-core assets -- 41,331
Purchases of marketable securities -- (39,235)
Other 1,724 5,379
---------- ----------
Cash flow from investing (67,197) (10,642)
---------- ----------
Financing
Debt transactions
Issuances of long-term debt 2,148 168,472
Repayments of long-term debt (68,293) (357,539)
Net repayments of notes and loans payable (41,018) (22,789)
Stock transactions
Issuances of capital stock 4,980 4,882
Issuance of preferred stock -- 110,887
Dividends (21,090) (15,497)
---------- ----------
Cash flow from financing (123,273) (111,584)
---------- ----------
Increase (decrease) in cash and equivalents (113,228) 10,160
Balance at beginning of period 285,558 236,675
---------- ----------
Balance at end of period $ 172,330 $ 246,835
========== ==========
</TABLE>
See Notes to Consolidated Financial Statements.
<PAGE>
CHIQUITA BRANDS INTERNATIONAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Interim results are subject to significant seasonal variations
and are not necessarily indicative of the results of operations
for a full fiscal year. In the opinion of management, all
adjustments (which include only normal recurring adjustments)
necessary for a fair statement of the results of the interim
periods shown have been made. See Notes to Consolidated
Financial Statements included in the Company's Annual Report on
Form 10-K for the year ended December 31, 1996 for additional
information relating to the Company's financial statements.
Acquisitions
On September 24, 1997, Chiquita acquired four privately-held
companies (collectively, the "Owatonna Companies") engaged
primarily in the vegetable canning business in a transaction
recorded under the purchase method of accounting. The total
purchase price of approximately $50 million, which is subject to
final adjustment, consisted of (i) approximately 3.3 million
shares of Chiquita capital stock, par value $.33 per share
("Chiquita Common Stock"), valued at approximately $46 million
and (ii) approximately 87,000 shares of a new series of Chiquita
$2.50 Convertible Preference Stock, Series C, having a value of
approximately $4 million. The assets of the Owatonna Companies
consisted primarily of $38 million of inventory and $15 million
of property, plant and equipment.
On September 15, 1997, Chiquita entered into an agreement to
acquire American Fine Foods, Inc., a privately-held vegetable
canning company, for approximately $27 million of Chiquita Common
Stock. The acquisition is subject to satisfaction of certain
conditions.
On September 17, 1997, Chiquita entered into an agreement to
acquire Stokely USA, Inc. ("Stokely"), a publicly-traded
vegetable canning company, for approximately $11 million of
Chiquita Common Stock. As part of the acquisition, approximately
$32 million of Stokely's long-term debt is to be retired in
exchange for Chiquita Common Stock having a value equal to the
principal amount of such debt. In addition to the debt to be
retired, at September 30, 1997, Stokely had long-term debt of
approximately $13 million and outstanding borrowings on its
revolving line of credit of approximately $50 million. The
acquisition is subject to Stokely shareholder approval and other
conditions.<PAGE>
Inventories
Inventories consist of the following (in thousands):
<TABLE>
<CAPTION>
September 30, December 31, September 30,
1997 1996 1996
<S> <C> <C> <C>
Bananas and other fresh produce $ 33,409 $ 34,557 $ 34,547
Canned vegetables 109,250 57,652 61,853
Other food products 8,805 9,277 8,535
Growing crops 113,371 114,425 120,020
Materials and supplies 49,442 49,699 47,512
Other 7,339 9,567 10,843
---------- ---------- ----------
$ 321,616 $ 275,177 $ 283,310
========== ========== ==========
</TABLE>
Other
The Company has a long-standing policy of periodically
entering into foreign exchange forward contracts and currency
option contracts to hedge transactions denominated in foreign
currencies. These forward contracts and options are specifically
designated as hedges and offset the losses or gains from currency
risk associated with the hedged transactions. The Company does
not enter into forward contracts or options for speculative
purposes. Amounts paid for options and any gains realized
thereon, as well as any gains or losses realized on forward
contracts used to hedge firm commitments, are deferred until the
hedged transaction occurs. Gains and losses on forward contracts
used to hedge transactions where a firm commitment does not exist
are included in income on a current basis.
At September 30, 1997, the Company had option contracts which
ensure conversion of approximately $100 million of foreign sales
through the end of 1997 at rates not higher than 1.59 Deutsche
marks per dollar or lower than 1.56 Deutsche marks per dollar and
approximately $375 million of foreign sales in 1998 at rates not
higher than 1.72 Deutsche marks per dollar or lower than 1.57
Deutsche marks per dollar. At September 30, 1997, the carrying
value of these option contracts was approximately $7 million and
their fair value based on quoted market prices was approximately
$23 million.<PAGE>
During 1997, the Financial Accounting Standards Board issued
the following Statements of Financial Accounting Standards
("SFAS"):
<TABLE>
<CAPTION>
SFAS # Subject of Standard Period to be Implemented
<S> <C> <C>
128 Earnings per Share 4th quarter of 1997
129 Capital Structure 4th quarter of 1997
130 Comprehensive Income 1st quarter of 1998
131 Segment Information 4th quarter of 1998
</TABLE>
SFAS #128 and #129 will not have a material effect on the
Company's financial position or results of operations. SFAS #130
and #131 are still under study and are not expected to have a
material effect on the Company's financial position or results of
operations.<PAGE>
CHIQUITA BRANDS INTERNATIONAL, INC.
MANAGEMENT'S ANALYSIS OF
OPERATIONS AND FINANCIAL CONDITION
Operations
Operating income for the third quarter ended September 30,
1997, which decreased by $21 million from the prior year, was
adversely affected by (1) a stronger dollar, mitigated in part by
the Company's foreign currency hedging program, and (2) increased
banana production costs arising primarily from weather-related
effects on current productivity. The adverse impact of these
items was partially offset by the benefit of higher local
currency pricing for bananas in Europe.
For the nine month period, 1997 operating income declined by
$27 million (as compared to 1996 operating income before first
quarter write-downs and costs of $12 million resulting from flood
damage in Costa Rica). This decline was principally the net
result of the foreign exchange, banana productivity and local
pricing factors which affected third quarter operating results.
In addition, net sales for the 1997 nine month period were
reduced by the deconsolidation in January 1997 of Japanese banana
operations (which are now operated through a joint venture and
accounted for under the equity method) and lower volume in low-
margin produce distribution operations.
Net interest expense for the third quarter and nine months
ended September 30, 1997 decreased by $1 million and $9 million
from the prior year levels as a result of the Company's debt
reduction and refinancing activities.
The Company's effective tax rate is affected by the level and
mix of income among various domestic and foreign jurisdictions in
which the Company operates.
Financial Condition
Cash decreased by $113 million during the nine months ended
September 30, 1997. With the availability in late 1996 of its
new $125 million revolving credit facility, the Company has used
excess cash to prepay debt. Through the nine months ended
September 30, 1997, the Company has repaid $109 million of debt.
Cash flow from operations of $77 million was sufficient to fund
the Company's requirements for investing activities, including
$16 million for capital expenditures to rehabilitate assets
damaged by storms in 1996.<PAGE>
Other
Reference is made to the discussion of the European Union
( EU ) banana quota and licensing regime, the Framework Agreement
and the World Trade Organization ( WTO ) proceeding relating to
this regime contained in Part I, Item 1 - Business-Risks of
International Operations in the Company s 1996 Form 10-K and in
Management s Analysis of Operations and Financial Condition in
the Company s 1996 Annual Report to Shareholders and June 30,
1997 Form 10-Q. In September 1997, the WTO Appellate Body
affirmed the panel report that had been issued in May 1997, which
found that the EU licensing and quota regime and Framework
Agreement violate numerous international trade obligations to the
detriment of Latin American banana supplying countries and non-EU
marketing firms such as Chiquita. The full WTO body has adopted
the panel and Appellate Body reports, which now require the EU to
bring its import regime for bananas into conformity with these
reports. In October 1997, the EU notified the WTO that it will
honor its international obligations. The EU has a reasonable
period of time (not to exceed 15 months) to implement the
report s recommendations. If the EU fails to comply within a
reasonable period of time, the injured governments may engage in
retaliatory trade measures against the EU. There can be no
assurance as to the ultimate outcome of the WTO proceedings, the
actions that may be taken by the EU or other affected countries,
or the impact on the EU quota regime or the Framework Agreement.
Part II - Other Information
Item 1 - Legal Proceedings
Reference is made to Part I, Item 3 - Legal Proceedings
in the Company s 1996 Form 10-K and the discussion of the
lawsuits pending in various jurisdictions alleging injuries as
a result of exposure to DBCP, an agricultural chemical. The
DBCP manufacturer defendants, Shell Oil Company, Dow Chemical
Company and Occidental Chemical Corporation, have reportedly
entered into agreements providing for settlements with
substantially all of the plaintiffs in the cases pending in
Texas, Louisiana, Costa Rica, Panama and the Philippines. The
Company and the other banana producer defendants are not
parties to these agreements.
Two additional class-action suits have been filed recently
in Hawaii state court. These suits, filed in October 1997,
assert claims similar to those asserted in the Texas and
Louisiana cases and name the same manufacturer and banana
producer defendants. The size and composition of the classes
alleged in these suits have not yet been determined.<PAGE>
The Company continues to believe it has meritorious
defenses in all the DBCP cases. These defenses include the
fact that at all times when the Company used DBCP
commercially, the product was registered for use by the United
States Environmental Protection Agency and that the Company
ceased using the product on a commercial basis in 1977,
promptly after learning that health hazards might exist. In
addition, the Company believes that the responsibility for any
injuries to the plaintiffs alleging claims against the Company
should be borne by the manufacturer defendants that supplied
DBCP to the Company.
Although the DBCP cases remain in a preliminary stage,
based on information currently available to it and advice of
counsel, management does not believe that these cases will
have a material adverse effect on the financial statements of
the Company.
Item 2 - Changes in Securities
In payment for the acquisition of the Owatonna Companies,
on September 24, 1997 the Company issued 3,020,587 shares of
Chiquita Common Stock and 79,659 shares of $2.50 Convertible
Preference Stock, Series C ("Series C Stock"), to the former
shareholders of the Owatonna Companies. The transaction was
exempt from registration pursuant to Section 4(2) of the
Securities Act of 1933 and Rule 506 of Regulation D
thereunder. These shares represent 92% of the $50 million
purchase price and were valued at $50 per share for the Series
C Stock and $13.91 per share for the Chiquita Common Stock,
which was based on market value of Chiquita Common Stock
preceding March 17, 1997, the date of the letter of intent
relating to the merger. The purchase price and number of
shares issued are subject to adjustment upon completion of a
post-closing audit.
Each share of Series C Stock has a liquidation value of
$50.00; is entitled to receive preferred annual dividends of
$2.50; is convertible into 2.922 shares of Chiquita Common
Stock at the option of the holder; and, after June 30, 2000,
is convertible at the option of the Company into shares of
Chiquita Common Stock having a total market value of $51.50
(decreasing to $50.00 per share in 2002 and thereafter). The
Series C Stock is not redeemable for cash, whether by sinking
fund or otherwise.
As to dividends and upon liquidation, the Series C Stock
ranks prior to the Chiquita Common Stock and pari passu with
the Company's other outstanding preferred stock. The holders
of Series C Stock are entitled to one vote per share, voting
with the Chiquita Common Stock. In addition, if the Company
is in arrears for six or more quarterly dividends on the
Series C Stock, holders of Series C Stock will be entitled,
voting as a separate class together with the holders of other<PAGE>
preferred or preference shares with similar rights, to elect
two additional directors to continue in office until the
dividend arrearage is eliminated.
Item 6 - Exhibits and Reports on Form 8-K
Page
Numbers
(a) Exhibit 11 - Computation of Earnings Per
Common Share . . . . . . . . . . . . . . . . . . . . 12-13
Exhibit 27 - Financial Data Schedule . . . . . . . . **
**Copy omitted from this Quarterly Report on Form 10-Q.
Copy included in report filed electronically with the
Securities and Exchange Commission.
(b) The following report on Form 8-K was filed by the Company
during the quarter ended September 30, 1997:
September 15, 1997 - to report the acquisition of the
Owatonna Companies and the signing of agreements for the
acquisitions of Stokely USA, Inc. and American Fine Foods,
Inc.<PAGE>
SIGNATURE
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.
CHIQUITA BRANDS INTERNATIONAL, INC.
By: /s/ William A. Tsacalis
William A. Tsacalis
Vice President and Controller
(Chief Accounting Officer)
November 10, 1997<PAGE>
Exhibit 11
<TABLE>
<CAPTION>
CHIQUITA BRANDS INTERNATIONAL, INC.
COMPUTATION OF EARNINGS PER COMMON SHARE (Unaudited)
(In thousands, except per share amounts)
Quarter Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
---------- ---------- --------- ----------
<S> <C> <C> <C> <C>
A. Primary earnings (loss) per common share
----------------------------------------
Income (loss) before extraordinary item $ (28,015) $ (7,585) $ 56,362 $ 59,732
Dividends on preferred and preference stock (4,227) (3,599) (12,672) (7,732)
---------- ---------- ---------- ----------
Income (loss) before extraordinary item
attributable to common shares (32,242) (11,184) 43,690 52,000
Extraordinary loss from debt refinancing -- (17,282) -- (22,838)
---------- ---------- ---------- ----------
Net income (loss) attributable to common shares $ (32,242) $ (28,466) $ 43,690 $ 29,162
========== ========== ========== ==========
Shares used in calculation of per share data:
Weighted average common shares outstanding 56,547 55,607 56,280 55,368
Less restricted common shares (159) (288) (178) (292)
Dilutive effect of assumed exercise of
stock options -- -- 767 665
---------- ---------- ---------- ----------
56,388 55,319 56,869 55,741
========== ========== ========== ==========
Primary earnings (loss) per common share:
Income (loss) before extraordinary item $ (.57) $ (.20) $ .77 $ .93
Extraordinary item -- (.31) -- (.41)
---------- ---------- ---------- ----------
Net income (loss) $ (.57) $ (.51) $ .77 $ .52
========== ========== ========== ==========
/TABLE
<PAGE>
Exhibit 11 (continued)
<TABLE>
<CAPTION>
CHIQUITA BRANDS INTERNATIONAL, INC.
COMPUTATION OF EARNINGS PER COMMON SHARE (Unaudited)
(In thousands, except per share amounts)
Quarter Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
---------- --------- --------- ---------
<S> <C> <C> <C> <C>
B. Fully diluted earnings (loss) per common share
----------------------------------------------
Income (loss) before extraordinary item $ (28,015) $ (7,585) $ 56,362 $ 59,732
Dividends on preferred and preference stock (4,227) (3,599) (12,672) (7,732)
---------- ---------- ---------- ----------
Income (loss) before extraordinary item
attributable to common shares (32,242) (11,184) 43,690 52,000
Extraordinary loss from debt refinancing -- (17,282) -- (22,838)
---------- ---------- ---------- ----------
Net income (loss) attributable to common shares $ (32,242) $ (28,466) $ 43,690 $ 29,162
========== ========== ========== ==========
Shares used in calculation of per share data:
Weighted average common shares outstanding 56,547 55,607 56,280 55,368
Less restricted common shares (159) (288) (174) (285)
Dilutive effect of assumed exercise of
stock options -- -- 873 773
---------- ---------- ---------- ----------
56,388 55,319 56,979 55,856
========== ========== ========== ==========
Fully diluted earnings (loss) per common share:
Income (loss) before extraordinary item $ (.57) $ (.20) $ .77 $ .93
Extraordinary item -- (.31) -- (.41)
---------- ---------- ---------- ----------
Net income (loss) $ (.57) $ (.51) $ .77 $ .52
========== ========== ========== ==========
/TABLE
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the Chiquita
Brands International, Inc. Form 10-Q for the nine months ended September 30,
1997 and is qualified in its entirety by reference to such financial
information.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 172,330
<SECURITIES> 0
<RECEIVABLES> 214,023
<ALLOWANCES> 10,235
<INVENTORY> 321,616
<CURRENT-ASSETS> 803,055
<PP&E> 1,777,345
<DEPRECIATION> 634,340
<TOTAL-ASSETS> 2,415,198
<CURRENT-LIABILITIES> 443,823
<BONDS> 981,346
0
253,239
<COMMON> 19,786
<OTHER-SE> 539,651
<TOTAL-LIABILITY-AND-EQUITY> 2,415,198
<SALES> 1,833,904
<TOTAL-REVENUES> 1,833,904
<CGS> 1,412,100
<TOTAL-COSTS> 1,412,100
<OTHER-EXPENSES> 64,418
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 82,482
<INCOME-PRETAX> 64,562
<INCOME-TAX> 8,200
<INCOME-CONTINUING> 56,362
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 56,362
<EPS-PRIMARY> .77
<EPS-DILUTED> .77
</TABLE>
