<PAGE> 1
Form 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------------
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 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 0-29558
ASA Holdings, Inc.
------------------
(Exact name of registrant as specified in its charter)
Georgia 58-2258221
------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
100 Hartsfield Centre Parkway, Suite 800, Atlanta, Georgia 30354
-------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(404) 766-1400
--------------
(Registrant's telephone number including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days Yes X No
----- -----
As of May 5, 1998 there were 29,864,477 shares of common stock outstanding.
<PAGE> 2
ASA HOLDINGS, INC.
INDEX
<TABLE>
<CAPTION>
Page No.
<S> <C>
Part I-Financial Information
Item 1. Condensed Consolidated Financial Statements
Balance Sheets- March 31, 1998 and December 31, 1997
Assets 3
Liabilities and Shareholders' Equity 4
Statements of Income- Three months ended
March 31, 1998 and March 31, 1997 5
Statements of Cash Flows- Three months ended
March 31, 1998 and March 31, 1997 6
Notes to Condensed Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 8
Part II-Other Information
Item 6. Exhibits and Reports on Form 8-K 13
Signatures 14
Exhibits
27 Financial Data Schedule (for SEC use only) 15
</TABLE>
-2-
<PAGE> 3
Part I - Financial Information
Item 1. Condensed Consolidated Financial Statements
ASA HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands of Dollars)
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
----------- -----------
(unaudited) (audited)
<S> <C> <C>
Assets
Current Assets
Cash and cash equivalents $141,154 $112,393
Marketable securities 60,090 71,487
Accounts receivable 11,961 6,663
Expendable parts 6,907 6,544
Other current assets 7,619 3,683
-------- --------
227,731 200,770
Property and Equipment
Flight equipment 470,559 468,667
Other property and equipment 17,054 16,766
Advance payments on property and equipment 27,194 26,167
-------- --------
514,807 511,600
Less accumulated depreciation and amortization 237,940 231,045
-------- --------
276,867 280,555
Other Assets
Investments - 11,777
Other assets 12,648 12,858
-------- --------
12,648 24,635
-------- --------
Total Assets $517,246 $505,960
======== ========
</TABLE>
See notes to condensed consolidated financial statements.
-3-
<PAGE> 4
ASA HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands of Dollars)
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
----------- ------------
(unaudited) (audited)
<S> <C> <C>
Liabilities and Shareholders' Equity
Current Liabilities
Current portion of long-term debt $ 21,114 $ 21,852
Accounts payable 25,225 25,411
Air traffic liability 1,545 2,408
Accrued compensation and related expenses 10,252 11,148
Accrued interest payable 1,750 1,058
Other accrued expenses 3,452 2,520
Income taxes payable 10,046 6,395
-------- --------
73,384 70,792
Long-Term Debt 69,210 72,792
Other Non-Current Liabilities 2,329 2,232
Deferred Income Taxes 64,214 64,219
Shareholders' Equity
Common stock, $.10 par value; authorized 150,000,000 shares;
issued - 29,822,877 and 29,730,877 shares, respectively 2,982 2,973
Retained earnings 305,122 292,937
Unrealized holding gain on investments 5 15
-------- --------
308,109 295,925
-------- --------
Total Liabilities and Shareholders' Equity $517,246 $505,960
======== ========
</TABLE>
See notes to condensed consolidated financial statements
-4-
<PAGE> 5
ASA HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In Thousands of Dollars Except Per Share Amounts)
(Unaudited)
<TABLE>
<CAPTION>
For The Three Months Ended
March 31,
-------------------------------
1998 1997
<S> <C> <C>
Operating Revenues:
Passenger $ 91,558 $ 87,731
Other 2,190 1,884
----------- -----------
Total Operating Revenues 93,748 89,615
Operating Expenses:
Flying operations 21,123 21,524
Maintenance 16,294 18,544
Passenger service 4,838 4,421
Aircraft and traffic servicing 12,599 11,094
Reservation, commission and other 7,527 8,517
General and administrative 4,811 2,586
Depreciation, amortization and obsolescence 6,701 6,983
Other 496 196
----------- -----------
Total Operating Expenses 74,389 73,865
Income from Operations 19,359 15,750
Non-Operating (Income) Expenses:
Interest income (2,738) (2,513)
Interest expense 698 1,244
Other (8) (9)
----------- -----------
(2,048) (1,278)
Income before Income Taxes 21,407 17,028
Income Taxes
Current 8,081 6,279
Deferred - 17
----------- -----------
8,081 6,296
----------- -----------
Net Income $ 13,326 $ 10,732
=========== ===========
Earnings per Common Share $ 0.45 $ 0.36
Weighted Average Common Shares Outstanding 29,839,178 29,970,873
Earnings per Common Share - Diluted $ 0.44 $ 0.36
Weighted Average Common Shares and Share Equivalents
Outstanding 30,022,585 30,030,885
Cash Dividends per Share $ 0.11 $ 0.10
</TABLE>
See notes to condensed consolidated financial statements.
-5-
<PAGE> 6
ASA HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of Dollars)
(Unaudited)
<TABLE>
<CAPTION>
For The Three Months Ended
March 31,
----------------------------
1998 1997
<S> <C> <C>
OPERATING ACTIVITIES
Net Income $ 13,326 $ 10,732
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Depreciation 6,457 6,714
Amortization and provision for obsolescence 244 269
Amortization of engine overhauls 1,774 1,849
Deferred income taxes (5) 62
Other 2,550 136
Changes in Operating Assets and Liabilities:
Receivables (5,329) (2,003)
Expendable parts (462) 1,129
Other assets (3,896) (284)
Accrued compensation and related expenses (799) (1,251)
Accrued interest payable 692 701
Other liabilities (117) (2,384)
Income taxes payable 3,651 5,274
-------- --------
NET CASH PROVIDED BY OPERATING ACTIVITIES 18,086 20,944
INVESTING ACTIVITIES
Purchase of Marketable Securities (49,687) (31,371)
Proceeds from Sale of Marketable Securities 61,096 44,012
Decrease in Investments 11,777 -
Purchases of Property and Equipment including
Advance Payments (4,827) (1,081)
Other 341 (29)
-------- --------
NET CASH PROVIDED BY INVESTING ACTIVITIES 18,700 11,531
FINANCING ACTIVITIES
Principal Payments on Long-Term Debt (4,320) (5,828)
Dividends Paid (3,295) (2,998)
Purchase of Common Stock (4,781) (2,759)
Proceeds from Exercise of Stock Options 4,371 -
-------- --------
NET CASH USED IN FINANCING ACTIVITIES (8,025) (11,585)
INCREASE IN CASH AND CASH EQUIVALENTS 28,761 20,890
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 112,393 137,469
-------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $141,154 $158,359
======== ========
</TABLE>
See notes to condensed consolidated financial statements.
-6-
<PAGE> 7
ASA HOLDINGS, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
1. In the opinion of management, the accompanying unaudited condensed
consolidated financial statements contain all adjustments necessary to
present fairly the financial position as of March 31, 1998 and results
of operations for the three-month periods ended March 31, 1998 and 1997
and cash flows for the three-month periods ended March 31, 1998 and
1997. The accounting adjustments contained in the financial statements
are of a normal recurring nature. 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 the rules and regulations of the
Securities and Exchange Commission (SEC) for Form 10-Q. It is suggested
that these unaudited condensed consolidated financial statements be
read in conjunction with the audited consolidated financial statements
and the notes thereto included in the 1997 Annual Report on Form 10-K
filed by the Company with the SEC under the Securities Exchange Act of
1934 on March 30, 1998.
2. Results of operations for the three-month period ended March 31, 1998
are not necessarily indicative of the results to be expected for the
year.
3. Earnings per share - Diluted are based on the weighted average number
of common and common equivalent shares outstanding. The calculations
are as follows:
<TABLE>
<CAPTION>
For the Three Months Ended March 31,
1998 1997
---- ----
<S> <C> <C>
Numerator:
Net Income $13,326,160 $10,732,482
Denominator:
For Earnings per Common Share:
Weighted Average Common
Shares Outstanding 29,839,178 29,970,873
Effect of Dilutive Securities:
Stock Options/SARs 183,407 60,012
For Earnings per Common Share- Diluted:
Weighted Average Common Shares and
Share Equivalents Outstanding 30,022,585 30,030,885
Earnings per Common Share $0.45 $0.36
Earnings per Common Share - Diluted $0.44 $0.36
</TABLE>
4. Marketable securities, which consist of investments with maturity dates
longer than three months and less than one year, and long-term
investments are reported at fair market value.
-7-
<PAGE> 8
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
This Item 2 should be read in conjunction with the unaudited condensed
consolidated financial statements included in Item 1 hereto.
This Form 10-Q, including Management's Discussion and Analysis which follows,
contains forward-looking statements in addition to historical information,
including but not limited to statements regarding the Company's current views
with respect to future events, trends, market conditions and financial
performance. Such forward-looking statements are subject to certain factors that
could cause actual results to differ materially from historical results or
anticipated events, trends or results. These factors include, but are not
limited to, material changes in the Company's relationship with Delta Air Lines,
Inc. (Delta); the cost and supply of aviation fuel; the acquisition and phase-in
of new aircraft; competitive pressures on pricing; changes in regulations
affecting the Company; seasonal factors and general economic conditions
affecting demand for air transportation; and labor relations, particularly the
outcome of ongoing contract negotiations with the pilots' union. These and other
factors affecting the Company's future performance are further detailed in
publicly available reports filed from time to time by the Company with the
Securities and Exchange Commission, such as the Company's Annual Report on Form
10-K for the year ended December 31, 1997.
ASA Holdings, Inc. (ASA Holdings) is a holding company the principal
assets of which are the shares of its wholly owned subsidiaries Atlantic
Southeast Airlines, Inc. (ASA) and ASA Investments, Inc. (ASA Investments). All
references to the Company contained in this section refer collectively to ASA
Holdings and its subsidiaries, ASA and ASA Investments. ASA Holdings considers
the airline business of ASA to be its only industry segment. All significant
intercompany transactions have been eliminated.
Liquidity and Capital Resources
Working capital increased to $154.3 million with a current ratio of 3.1
at March 31, 1998 compared with working capital of $130.0 million and a current
ratio of 2.8 at December 31, 1997. Cash, cash equivalents and investments in
marketable securities increased by $17.4 million primarily due to $18.1 million
in cash from operations, $4.4 million from the exercise of stock options and an
$11.8 million reclassification of long-term investments to short-term, offset by
a $4.8 million investment in property and equipment, a $4.3 million decrease in
long-term debt, $3.3 million of dividends paid and $4.8 million of common stock
repurchases.
The Company has an unsecured line of credit totaling $8 million with
one of its banks. As of March 31, 1998, $.7 million of this line was committed
to support a letter of credit. The remainder is available for general working
-8-
<PAGE> 9
capital purposes on an as needed basis. As of March 31, 1998, there were no
outstanding amounts against the line of credit.
On April 21, 1997, ASA announced that it had executed an acquisition
agreement with Bombardier, Inc. for 30 Canadair Regional Jet aircraft (CRJ) with
options for an additional 60 CRJ aircraft. The CRJ is a 50-passenger jet with
four-abreast seating that will be used to promote growth in new markets as well
as replace some turboprop equipment on existing routes. The value of the 30
aircraft, including spare parts and spare engines, will be approximately $600
million. Delivery of these aircraft began in August 1997, and ASA had acquired a
total of eight CRJ aircraft as of March 31, 1998 through operating leases with
16.5 year terms. ASA obtained a commitment from the Export Development
Corporation (EDC) of Canada to provide financing to ASA for up to approximately
85% of the purchase price of each of the CRJs. This facility, which ASA is not
obligated to use for its acquisition of all or any of the CRJs, is available on
an aircraft by aircraft basis in the form of either direct loans or leases, with
interest payable at various interest rate options determined by reference to
either U.S. treasury rates or LIBOR, and on various repayment terms. ASA has
arranged to acquire its next two CRJs under operating lease arrangements.
Thereafter, future deliveries of the remaining 20 CRJs are anticipated to be at
an approximate rate of one aircraft per month and the financing arrangements
have not yet been determined. ASA may finance the CRJs as well as other
anticipated expenditures through a combination of existing cash reserves,
internally generated funds and lease and debt financing. Given the nature of the
considerations relevant to the determination of the most advantageous form of
financing at a given time, the Company cannot predict with any certainty the
anticipated amount of funds which may be provided from such possible financing
sources.
The Company's percentage of long-term debt to equity decreased to 22%
at March 31, 1998 compared with 25% at December 31, 1997. Long-term debt
decreased to $69.2 million from $72.8 million at the end of 1997.
Shareholders' equity per share increased to $10.33 at March 31, 1998
from $9.95 at the end of 1997. Net worth increased $12.2 million primarily due
to $13.3 million of net income during the first three months of 1998 and $6.9
million from the exercise of stock options, offset by dividends paid of $3.3
million and common stock repurchases of $4.8 million. In February 1998, ASA
Holdings announced that its Board of Directors authorized the repurchase of up
to an additional $50.0 million of its common stock on the open market during the
following twelve month period. The repurchased shares will be held as treasury
stock and used for general corporate purposes or will be canceled.
For the first quarter of 1998, the Board of Directors declared a
quarterly cash dividend of 11 cents per share compared with 10 cents per share
for the first quarter of 1997.
During 1987, the Air Line Pilots Association (ALPA) was certified to
represent the Company's pilots for collective bargaining purposes. Since that
-9-
<PAGE> 10
time, the Company and ALPA have executed two successive collective bargaining
agreements. The latest agreement became amendable on October 29, 1995, and ASA
and ALPA entered into negotiations for a new collective bargaining agreement. In
1996, ASA and ALPA entered federal mediation with respect to those negotiations
which continued throughout 1997. In January 1998, ASA and ALPA reached a
tentative agreement on a new 54-month collective bargaining agreement, pending
ratification of the agreement by the pilots. In March 1998, the members of ALPA
voted to reject the tentative accord, and management expects negotiations with
ALPA to continue under the auspices of the National Mediation Board. The
existing collective bargaining agreement between ASA and ALPA will remain in
effect until a new agreement is reached and ratified or until the procedures of
the Railway Labor Act (RLA), which governs labor relations of air carriers and
employees in the airline industry, are exhausted. There can be no assurance that
ASA will be able to settle contract negotiations without wage increases, work
rule changes or other provisions that could have a material adverse effect on
the Company's operations or financial performance. In addition, any cessation or
disruption of operations due to any strike or work action could have a material
adverse effect on the Company and its financial performance.
The Company has implemented a Year 2000 compliance program designed to
ensure that the Company's computer systems and applications will function
properly beyond 1999. The Company believes that it has allocated adequate
resources for this purpose and expects its Year 2000 conversions to be completed
on a timely basis. The Company is not aware of any Year 2000 issues that would
materially adversely affect operations or results thereof and does not expect
implementation to have a material impact on the financial statements. However,
there can be no assurance that the systems of third parties upon which the
Company's business relies will be Year 2000 compliant on a timely basis. The
failure of the Company's computer systems or applications or those operated by
such third parties could have a material adverse effect on the Company's
business, results of operations and financial condition.
Based on information currently available to it, the Company believes
that available resources will be sufficient to meet its existing expenditure
commitments (including current maturities of long-term debt and aircraft lease
payments) as well as its anticipated capital expenditures and other working
capital requirements for the foreseeable future. As previously indicated,
financial resources anticipated to be available to the Company for such purposes
include existing cash reserves, internally generated funds, amounts available
under the existing line of credit, and short and long-term financing
arrangements that the Company believes are available to it.
New Accounting Standards
The FASB issued Statement of Financial Accounting Standards No. 130,
"Reporting Comprehensive Income," in June 1997. Statement No. 130 establishes
standards for reporting and displaying comprehensive income, as defined, and its
components in financial statements issued for fiscal years beginning after
December 15, 1997. Management believes that the adoption of
-10-
<PAGE> 11
Statement No. 130 will not have a material impact on the financial statements.
Results of Operations
For the three months ended March 31, 1998 and 1997
The Company had record passenger traffic, operating revenues and net
income for the first quarter of 1998. Net income for the first quarter increased
by 24% to $13.3 million compared with $10.7 million for the same period in 1997.
Diluted earnings per common share for the first quarter of 1998 increased to
$.44 compared with $.36 for the first quarter of 1997.
Total revenues in the first quarter of 1998 were $93.7 million compared
with $89.6 million for the first quarter of 1997. Factors for the first quarters
of 1998 and 1997 which affect passenger revenue are detailed below:
<TABLE>
<CAPTION>
Quarter Ended March 31,
1998 1997
---- ----
<S> <C> <C>
Revenue Passenger Miles (000,000) 221.2 203.8
Passengers (000) 869.2 836.4
Load Factor 52.3% 47.0%
Average Passenger Yield 41.4(cent) 43.0(cent)
Average Trip Length 254.5 243.6
</TABLE>
Passenger revenue increased primarily due to higher traffic, offset by
a lower yield per revenue passenger mile, which was primarily caused by the
reimposition of the federal ad valorem ticket tax in March 1997. The Company was
not able to completely pass these charges on to its customers due to price
competition in various markets. Both revenue passenger miles (RPMs) and load
factor were higher in the first quarter of 1998 compared with the same period of
1997 due to the increased passenger traffic.
Operating expenses remained relatively constant at $74.4 million for
the quarter ended March 31, 1998 compared with $73.9 million for the same period
of 1997.
-11-
<PAGE> 12
The following table compares components of operating cost per
available seat mile (ASM) and operating expense as a percentage of total
operating expense for the three month periods ended March 31, 1998 and 1997:
<TABLE>
<CAPTION>
Cost per ASM % Operating Cost
Quarter Ended Quarter Ended
March 31, March 31,
--------------------------------------------
1998 1997 1998 1997
--------------------------------------------------------
<S> <C> <C> <C> <C>
Labor and related 4.7(cent) 4.2(cent) 27% 24%
Fuel 1.6 2.0 9 12
Direct maintenance 2.9 3.4 16 20
Passenger related 1.6 1.8 9 11
Depreciation and aircraft rent 2.8 2.5 16 15
Other 4.0 3.2 23 18
------------------------------------------------------
Total operating expense 17.6(cent) 17.1(cent) 100% 100%
</TABLE>
Labor and related costs increased 9% to $19.8 million for the first
quarter of 1998 compared with $18.1 million for the same period in 1997. The
average number of employees grew 2% from 2,458 to 2,499 as of March 31, 1998. A
credit to expense of $.5 million for Stock Appreciation Rights (SARs) was
recorded during the first quarter of 1997 due to a 5% decrease in the Company's
stock price. On May 21, 1997, the Company's shareholders approved the
cancellation of all outstanding SARs and the adoption of a Non-Qualified Stock
Option Plan (Option Plan). The Company does not intend to incur any additional
SARs expense in the future. Labor and related costs for the first quarters of
1998 and 1997 without the SARs credit adjustment in 1997 would have been $19.8
million and $18.7 million, respectively. The increase for 1998 is due primarily
to more employees and higher salaries.
Fuel expense decreased to 1.6 cents per ASM for the first quarter of
1998, compared with 2.0 cents for the quarter ended March 31, 1997. Fuel expense
decreased $1.7 million spread over a 2% decrease in capacity (the number of
ASMs). The average price per gallon, including taxes and into plane fees,
decreased 19% to 64.9 cents from 80.4 cents, due primarily to lower crude oil
prices.
Direct maintenance expense, excluding labor and related costs,
decreased 16% to $12.2 million for the quarter ended March 31, 1998. The lower
expense was due primarily to the timing of maintenance inspections and overhauls
of time controlled components. In mid-1997, ASA elected to exercise its option
for the early return of all of its BAe 146 aircraft to their lessor during the
fourth quarter of 1997 and first quarter of 1998. As a result, the first quarter
of 1998 included less maintenance expense for the BAe 146 aircraft. The new CRJ
aircraft, which was first added to ASA's fleet during the second half of 1997,
is expected to be used over longer routes, which should create a higher capacity
over which maintenance costs can be distributed.
-12-
<PAGE> 13
Passenger related expenses, which include a majority of the expenses
under the caption "Reservation, commission and other" on the Company's
Consolidated Statements of Income, were $6.7 million for the first quarter of
1998 compared with $8.0 million for the first quarter of 1997. This decrease was
primarily attributable to lower rates for travel agency commissions.
Depreciation and aircraft rent increased to $11.8 million for the first
quarter of 1998 compared with $11.0 million for the first quarter of 1997. This
increase was due primarily to higher aircraft rental incurred as a result of the
acquisition of five new CRJs during the last half of 1997 and an additional
three CRJs during the first quarter of 1998, offset by a reduction in rent
expense on the BAe 146 aircraft which were returned to their lessor.
Other expenses increased to $17.0 million for the first three months of
1998 compared with $13.6 million for the same period last year. The increase in
1998 was primarily attributable to higher station rental and interrupted trip
expenses, and costs associated with the negotiations related to the pilot
contract.
Interest expense decreased by 44% to $.7 million for the quarter ended
March 31, 1998 compared with the same quarter of 1997. This decrease was due to
less debt outstanding and capitalized interest of $.4 million related to the
deposits on the CRJ aircraft.
The first quarter 1998 break-even load factor increased to 40.3%
compared with 38.1% for the same period of 1997. This increase was primarily the
result of fewer ASMs over which to spread total expenses and a lower average
passenger yield in the first quarter of 1998.
Part II- Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) The following exhibits are filed as part of this report. The
exhibit number refers to Item 601 of Regulation S-K.
27 Financial Data Schedule (for SEC use only)
(b) Reports on Form 8-K - There were no reports on Form 8-K filed
during the quarter ended March 31, 1998.
-13-
<PAGE> 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.
ASA Holdings, Inc.
/s/ Ronald V. Sapp
-----------------------------
Ronald V. Sapp
Chief Financial Officer
Senior Vice President - Finance
Date: May 14 , 1998
-14-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE
MONTHS ENDED MARCH 31, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 141,154
<SECURITIES> 60,090
<RECEIVABLES> 12,274
<ALLOWANCES> (313)
<INVENTORY> 6,907
<CURRENT-ASSETS> 7,619
<PP&E> 514,807
<DEPRECIATION> 237,940
<TOTAL-ASSETS> 517,246
<CURRENT-LIABILITIES> 73,384
<BONDS> 69,210
0
0
<COMMON> 2,982<F1>
<OTHER-SE> 305,127<F2>
<TOTAL-LIABILITY-AND-EQUITY> 517,246
<SALES> 0
<TOTAL-REVENUES> 93,748
<CGS> 0
<TOTAL-COSTS> 74,389
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 30
<INTEREST-EXPENSE> 698
<INCOME-PRETAX> 21,407
<INCOME-TAX> 8,081
<INCOME-CONTINUING> 13,326
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 13,326
<EPS-PRIMARY> .45
<EPS-DILUTED> .44
<FN>
<F1>REDUCED BY APPROXIMATELY $67,310 ALLOCABLE TO 673,100 SHARES OF TREASURY
STOCK.
<F2>REDUCED BY APPROXIMATELY $18,954,000 ALLOCABLE TO 673,100 SHARES OF TREASURY
STOCK.
</FN>
</TABLE>
