<PAGE> 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 September 30, 1995 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 1-4720
------
WESCO FINANCIAL CORPORATION
------------------------------------------------------
(Exact name of Registrant as Specified in its Charter)
DELAWARE 95-2109453
------------------------------- ------------------
(State or Other Jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
301 East Colorado Boulevard, Suite 300, Pasadena, California 91101-1901
--------------------------------------------------------------------------
(Address of Principal Executive Offices)
818/585-6700
- ----------------------------------------------------------------------------
(Registrant's Telephone Number, Including Area Code)
- -----------------------------------------------------------------------------
(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
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date. 7,119,807 as of
November 13, 1995
<PAGE> 2
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
The condensed consolidated financial statements of Wesco Financial
Corporation, listed in the accompanying index, are incorporated as an
integral part of this report.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
See pages 8 through 12.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits -- None
(b) Reports on Form 8-K -- None
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.
WESCO FINANCIAL CORPORATION
Date: November 13, 1995 By: /s/ JEFFREY L. JACOBSON
-------------------------- -----------------------------
Jeffrey L. Jacobson
Vice President and
Chief Financial Officer
(principal financial officer)
-2-
<PAGE> 3
WESCO FINANCIAL CORPORATION
FINANCIAL STATEMENTS FILED WITH FORM 10-Q
FOR QUARTER ENDED SEPTEMBER 30, 1995
INDEX
<TABLE>
<CAPTION>
Page
----
<S> <C>
Condensed consolidated statement of income and
retained earnings -- Nine- and three-month periods
ended September 30, 1995 and September 30, 1994 . . . . . . . . . . . . . . . . . . . . . . . 4
Condensed consolidated balance sheet --
September 30, 1995 and December 31, 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Condensed consolidated statement of cash flows --
nine-month periods ended September 30, 1995
and September 30, 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Notes to condensed consolidated financial
statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
</TABLE>
-3-
<PAGE> 4
WESCO FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
(Dollar amounts in thousands except for amounts per share)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------------ ------------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1995 1994 1995 1994
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Revenues:
Insurance premiums earned . . . . . . . . . . . . . . . . . . $ 3 $ 0 $ 9,286 $ 1,078
Sales and service revenues . . . . . . . . . . . . . . . . . . 15,010 15,707 48,372 47,997
Dividend and interest income . . . . . . . . . . . . . . . . 7,589 7,069 22,772 21,714
Gains (losses) on sales of securities
and foreclosed property . . . . . . . . . . . . . . . . . . 888 (318) 7,597 323
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . 326 314 1,479 1,409
-------- -------- -------- --------
23,816 22,772 89,506 72,521
-------- -------- -------- --------
Costs and expenses:
Insurance losses, loss adjustment
and underwriting expenses . . . . . . . . . . . . . . . . . 96 (1,633) 1,492 (231)
Cost of services and products sold . . . . . . . . . . . . . . 12,194 12,549 38,883 38,429
Selling, general and administrative expenses . . . . . . . . . 3,076 2,630 8,706 9,348
Interest on notes payable . . . . . . . . . . . . . . . . . . 843 860 2,530 2,547
-------- -------- -------- --------
16,209 14,406 51,611 50,093
-------- -------- -------- --------
Income before income taxes . . . . . . . . . . . . . . . . . . . 7,607 8,366 37,895 22,428
Provision for income taxes . . . . . . . . . . . . . . . . . . . (1,332) (1,614) (9,206) (3,731)
-------- -------- -------- --------
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,275 6,752 28,689 18,697
Retained earnings -- beginning of period . . . . . . . . . . . . 317,369 295,047 298,586 286,591
Cash dividends declared and paid . . . . . . . . . . . . . . . . (1,816) (1,745) (5,447) (5,234)
-------- -------- -------- --------
Retained earnings -- end of period . . . . . . . . . . . . . . . $321,828 $300,054 $321,828 $300,054
======== ======== ======== ========
Amounts per share based on 7,119,807 shares
outstanding throughout each period:
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . $ .88 $ .95 $4.03 $2.63
===== ===== ===== =====
Cash dividends . . . . . . . . . . . . . . . . . . . . . . . . $ .255 $ .245 $ .765 $ .735
====== ====== ====== ======
</TABLE>
See notes on page 7.
-4-
<PAGE> 5
WESCO FINANCIAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(Dollar amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Sept. 30, Dec. 31,
1995 1994
----------- -----------
<S> <C> <C>
ASSETS
Cash and temporary cash investments . . . . . . . . . . . . . . . . . . . . . $ 56,157 $ 15,800
Investments:
Securities with fixed maturities . . . . . . . . . . . . . . . . . . . . . 142,430 183,089
Marketable equity securities . . . . . . . . . . . . . . . . . . . . . . . 961,731 696,261
Other assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,900 66,611
---------- ----------
$1,224,218 $ 961,761
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Insurance losses and loss adjustment expenses . . . . . . . . . . . . . . . . $ 36,668 $ 39,785
Income taxes payable, principally deferred . . . . . . . . . . . . . . . . . 276,398 191,858
Notes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,417 37,557
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,705 14,414
---------- ----------
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . 362,188 283,614
Shareholders' equity:
Capital stock and surplus . . . . . . . . . . . . . . . . . . . . . . . . 30,439 30,439
Unrealized appreciation of investments, net of taxes . . . . . . . . . . . 509,763 349,122
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . 321,828 298,586
---------- ----------
Total shareholders' equity . . . . . . . . . . . . . . . . . . . . . . 862,030 678,147
---------- ----------
$1,224,218 $ 961,761
========== ==========
</TABLE>
See notes on page 7.
-5-
<PAGE> 6
WESCO FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Dollar amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
-------------------------
Sept. 30, Sept. 30,
1995 1994
--------- ---------
<S> <C> <C>
Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . $ 13,596 $ 8,104
-------- --------
Cash flows from investing activities --
Proceeds from sales and maturities of investment securities . . . . . . . . . . . . . 49,951 33,292
Purchases of marketable equity securities . . . . . . . . . . . . . . . . . . . . . . (20,687) --
Purchases of securities with fixed maturities . .. . . . . . . . . . . . . . . . . . . -- (20,637)
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,084 3,072
-------- --------
Net cash provided by investing activities . . . . . . . . . . . . . . . . . . . . . . . . 32,348 15,727
-------- --------
Cash flows from financing activities --
Repayment of short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . -- (10,385)
Payment of cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,447) (5,234)
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (140) (252)
-------- --------
Net cash used by financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . (5,587) (15,871)
-------- --------
Increase in cash, including temporary cash investments . . . . . . . . . . . . . . . . . 40,357 7,960
Cash, including temporary cash investments -- beginning of period . . . . . . . . . . . . 15,800 5,230
-------- --------
Cash, including temporary cash investments -- end of period . . . . . . . . . . . . . . . $ 56,157 $ 13,190
======== ========
Supplementary information:
Interest paid during period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,864 $ 1,831
======== ========
Income taxes paid during period . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,261 $ 11,380
======== ========
</TABLE>
See notes on page 7.
-6-
<PAGE> 7
WESCO FINANCIAL CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1
In the opinion of management, all adjustments necessary to a fair statement of
the results of operations of Wesco Financial Corporation ("Wesco") and its
subsidiaries (consisting only of normal recurring accruals) are reflected in
the condensed consolidated financial statements.
NOTE 2
Reference is made to the notes to Wesco's consolidated financial statements
appearing on pages 35 through 45 of its 1994 Form 10-K Annual Report for other
information deemed generally applicable to the condensed consolidated financial
statements.
NOTE 3
Following is a summary of marketable equity securities, in thousands of
dollars:
<TABLE>
<CAPTION>
September 30, 1995 December 31, 1994
-------------------------- -------------------------
Market and Market and
Carrying Carrying
Cost Value Cost Value
-------- ---------- -------- ----------
<S> <C> <C> <C> <C>
Federal Home Loan Mortgage
Corporation common stock . . . . . . . . . . $ 71,729 $497,700 $ 71,729 $363,600
The Coca-Cola Company common stock . . . . . . . 40,761 248,593 40,761 185,544
The Gillette Company common stock . . . . . . . 40,000 152,400 40,000 119,800
Other . . . . . . . . . . . . . . . . . . . . . 34,952 63,038 14,265 27,317
-------- -------- -------- --------
$187,442 $961,731 $166,755 $696,261
======== ======== ======== ========
</TABLE>
NOTE 4
Following is a summary of the changes in unrealized appreciation of
investments, net of deemed applicable income taxes, included in shareholders'
equity on the condensed consolidated balance sheet, in thousands of dollars:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------------ -------------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1995 1994 1995 1994
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Balance at beginning of period . . . $483,187 $372,808 $349,122 $309,057
Net increase (decrease) in
unrealized appreciation . . . . . 40,902 (40,468) 247,235 57,624
(Increase) decrease in deemed
applicable income taxes . . . . . (14,326) 13,960 (86,594) (20,381)
-------- -------- -------- --------
Balance at end of period . . . . . . $509,763 $346,300 $509,763 $346,300
======== ======== ======== ========
</TABLE>
-7-
<PAGE> 8
WESCO FINANCIAL CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Reference is made to management's discussion and analysis of Wesco's
consolidated financial condition and results of operations appearing on pages
20 through 28 of its 1994 Form 10-K Annual Report for information deemed
generally appropriate to an understanding of the accompanying condensed
consolidated financial statements. The information set forth in the following
paragraphs updates such discussion.
FINANCIAL CONDITION
Wesco's shareholders' equity at September 30, 1995 was $862,030,000 or
$121.07 per share, up $31,035,000 or $4.35 per share for the third quarter of
1995, and up $183,883,000 or $25.82 per share for the first nine months. This
increase was due principally to the continued increase in unrealized
appreciation of investments, which under accounting convention is credited
directly to shareholders' equity, net of taxes, without being reflected in
earnings. Unrealized appreciation totaled $509,763,000 or $71.60 per share at
September 30, 1995 -- about 59% of shareholders' equity, compared to 58% at
June 30, 1995 and 51% at December 31, 1994. Unrealized appreciation is
recorded by reference to current market values, which are subject to
fluctuation, and ultimate realization is generally unpredictable. Even if
appreciation of investments is ignored, the financial condition of Wesco and
its subsidiaries continues to be very sound and liquid.
-8-
<PAGE> 9
RESULTS OF OPERATIONS
Following is a breakdown of Wesco's consolidated net (after-tax)
income by business segment, in thousands of dollars:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------------ -------------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1995 1994 1995 1994
-------- -------- --------- ---------
<S> <C> <C> <C> <C>
Net income from identified segments:
Insurance segment:
"Normal" net operating income . . . . . . . . . . . . . . . . $5,279 $6,013 $21,239 $15,693
Securities gains . . . . . . . . . . . . . . . . . . . . 155 1 2,424 164
------ ------ ------- -------
Segment net income . . . . . . . . . . . . . . . . . . . . 5,434 6,014 23,663 15,857
------ ----- ------ ------
Industrial segment net income
(all "normal" net operating) . . . . . . . . . . . . . . . . 439 685 1,937 2,151
------ ------ ------ ------
Net income other than from identified
business segments:
"Normal" net operating income . . . . . . . . . . . . . . . 402 53 1,180 689
Securities gains . . . . . . . . . . . . . . . . . . . . . . -- -- 1,909 --
------ ------ ------- -------
Nonsegment net income . . . . . . . . . . . . . . . . . . . 402 53 3,089 689
------ ------ ------- -------
Net income -- consolidated . . . . . . . . . . . . . . . . . . . . $6,275 $6,752 $28,689 $18,697
====== ====== ======= =======
</TABLE>
Insurance Segment
Following is a summary of the results of underwriting and investing
activities comprising the "normal" net operating income of Wesco's wholly owned
subsidiary, Wesco-Financial Insurance Company ("Wes-FIC"), in thousands of
dollars:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
--------------------- ---------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1995 1994 1995 1994
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Premiums written (returned), net . . . . . . . . . . . . . . . . . . . $ 381 $ (3) $ 5,808 $ 8,825
======= ======= ======= =======
Premiums earned . . . . . . . . . . . . . . . . . . . . . . $ 3 $ -- $ 9,286 $ 1,078
======= ======= ======= =======
Underwriting gain (loss) . . . . . . . . . . . . . . . . . . . . . . $ (174) $ 1,632 $ 7,713 $ 1,308
Dividend and interest income . . . . . . . . . . . . . . . . . . . . . 6,611 6,029 19,666 17,894
------- ------- ------- -------
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . 6,437 7,661 27,379 19,202
Provision for income taxes . . . . . . . . . . . . . . . . . . . . . . (1,158) (1,648) (6,140) (3,509)
------- ------- ------- -------
"Normal" net operating income . . . . . . . . . . . . . . . . . . . . . $ 5,279 $ 6,013 $21,239 $15,693
======= ======= ======= =======
</TABLE>
-9-
<PAGE> 10
As previously reported, Wes-FIC entered into the super-catastrophe
("super-cat") reinsurance business in the first quarter of 1994, when National
Indemnity Company ("NICO"), an insurance company subsidiary of Berkshire
Hathaway Inc. ("Berkshire"), Wesco's ultimate parent company, retroceded to
Wes-FIC from 10% to 20% of certain super-cat reinsurance contracts (see Wesco's
1994 Form 10-K Annual Report for further details). Wes-FIC's entry into the
business of super-cat reinsurance followed a large increase in net worth due to
its absorption through merger of Mutual Savings and Loan Association, another
wholly owned subsidiary of Wesco, in January 1994.
Premiums written in the first nine months of 1995 and 1994 have
consisted almost entirely of super-cat premiums retroceded by NICO. The
decrease in volume of premiums written in the first nine months of the current
year was caused by NICO's retrocession to Wes-FIC of fewer contracts in 1995
than in 1994, as not all of the contracts in which Wes-FIC participated in 1994
were renewed. Management of Berkshire has reported that super-cat reinsurance
pricing has become less attractive due to competition from other companies that
have recently raised capital to enter the business.
Insurance premiums are recognized as earned revenues by Wes-FIC pro
rata over the term of the contract on all forms of insurance except for
super-cat reinsurance. Premiums on super-cat reinsurance are not recognized as
earned until the earlier of a loss occurrence or policy expiration. The
increase in recognition of earned premiums for the nine-month period ended
September 30, 1995 over the corresponding 1994 figure was attributable mainly
to expiration of the super-cat policies discussed above.
An underwriting loss has typically been reported by Wes-FIC each year.
The underwriting gain reported for the nine-month period ended September 30,
1995 was attributable mainly to the recognition, in the first quarter, of
earned premiums without offsetting losses upon the expiration of the six
super-cat reinsurance contracts written in 1994. The factors principally
responsible for the underwriting gains reported for the third quarter and first
nine months of 1994 were downward revisions of estimated liabilities for losses
and loss expenses with respect to business written in earlier years.
-10-
<PAGE> 11
Industrial Segment
Following is a summary of the results of operations of the industrial
segment, whose operations comprise those of wholly owned Precision Steel
Warehouse, Inc. and its subsidiaries ("Precision Steel"), in thousands of
dollars:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
-------------------------- ----------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1995 1994 1995 1994
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Revenues, principally sales
and services . . . . . . . . . . . . . . . . . . $15,039 $15,717 $48,470 $48,154
======= ======= ======= =======
Income before income taxes . . . . . . . . . . . . . . $ 735 $ 1,146 $ 3,224 $ 3,574
Provision for income taxes . . . . . . . . . . . . . . (296) (461) (1,287) (1,423)
------- ------- ------- --------
Industrial segment net income . . . . . . . . . . . . . $ 439 $ 685 $ 1,937 $ 2,151
======= ======= ======= =======
</TABLE>
Sales volumes in terms of pounds of steel sold in the third quarter
and first nine months of 1995 decreased by 13.4% and 7.6% from the volumes of
the corresponding periods last year, due, it is believed, to a weakening of the
industrial sector of the economy. However, as a result of increases in the
proportion of sales of higher-priced products, overall revenues of the
industrial segment were relatively unchanged.
Income before income taxes and net income of Precision Steel typically
fluctuate from period to period for a number of reasons, including fluctuations
in sales volume and changes in the gross profit percentage caused by changes in
product mix, price competition among suppliers and at the retail level, and
availability of favorable quantity order prices on materials purchased. The
gross profit percentages were 18.8% and 20.1% for the third quarters of 1995
and 1994, and 19.6% and 19.9% for the corresponding nine-month periods.
Other Than Identified Business Segments
Earnings other than from identified business segments include mainly
(1) dividend and interest income from marketable securities and cash
equivalents owned outside the insurance subsidiary, and (2) rental income from
owned commercial real estate, reduced by (1) the costs associated with the
development and liquidation of foreclosed real estate and delinquent loans
formerly owned by the savings and loan subsidiary, (2) interest and other
corporate expenses, and (3) income taxes.
-11-
<PAGE> 12
* * * * *
Realized securities gains and losses -- recorded when securities are
sold or when market values are considered to be other than temporarily impaired
- -- tend to fluctuate, sometimes significantly, from period to period. The
amount of realized gain or loss for any period has no predictive value, and
variations in amount from period to period have no practical analytical value,
particularly in view of the present existence of substantial net unrealized
price appreciation in Wesco's consolidated investment portfolio.
Consolidated earnings for the first nine months of 1995 include
realized securities gains of $4,333,000, after taxes, compared to $164,000 for
the first nine months of 1994. The 1995 figure includes a gain of $4,192,000,
after taxes, realized in the second quarter by Wesco and its subsidiaries on
conversion to common stock and sale of their investment in cumulative
convertible preferred stock of Champion International Corporation.
Wesco's effective consolidated income tax rate typically fluctuates
from period to period for various reasons, such as the inclusion in
consolidated revenues of significant, varying amounts of dividend income from
preferred and common stocks, which is substantially exempt from income taxes.
The respective income tax provisions, expressed as percentages of income before
income taxes, amounted to 17.5% and 19.3% for the third quarters and 24.3% and
16.6% for the nine-month periods ended September 30, 1995 and September 30,
1994.
Consolidated revenues, expenses and earnings reported in any period
are not necessarily indicative of future revenues, expenses and earnings, in
that they are subject to significant variations in amount and timing of gains
and losses from disposition or writedown of securities, foreclosed properties
and other assets and liabilities; potential large insurance losses; and the
possible occurrence of other unusual items.
* * * * *
On October 31, 1995, Salomon Inc, in accordance with the terms of its
cumulative convertible preferred stock, redeemed 20% of the $100,000,000 par
value of such shares owned by Wesco and its subsidiaries at par plus accrued
dividends. There will be no effect on Wesco's consolidated fourth quarter
earnings other than to record the dividends.
-12-
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<EXCHANGE-RATE> 1
<CASH> 56,157
<SECURITIES> 1,104,161
<RECEIVABLES> 12,637
<ALLOWANCES> (97)
<INVENTORY> 9,199
<CURRENT-ASSETS> 0
<PP&E> 29,695
<DEPRECIATION> (15,618)
<TOTAL-ASSETS> 1,224,218
<CURRENT-LIABILITIES> 0
<BONDS> 37,417
<COMMON> 7,120
0
0
<OTHER-SE> 854,910
<TOTAL-LIABILITY-AND-EQUITY> 1,224,218
<SALES> 48,372
<TOTAL-REVENUES> 89,505
<CGS> 38,883
<TOTAL-COSTS> 40,374
<OTHER-EXPENSES> 7,706
<LOSS-PROVISION> 1,000
<INTEREST-EXPENSE> 2,530
<INCOME-PRETAX> 37,895
<INCOME-TAX> (9,206)
<INCOME-CONTINUING> 28,689
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 28,689
<EPS-PRIMARY> 4.03
<EPS-DILUTED> 4.03
</TABLE>
