<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, 1999 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)
<TABLE>
<CAPTION>
DELAWARE 95-2109453
- ------------------------------- -----------------------------------
<S> <C>
(State or Other Jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization
</TABLE>
301 East Colorado Boulevard, Suite 300, Pasadena, California 91101-1901
-----------------------------------------------------------------------
(Address of Principal Executive Offices)
626/585-6700
----------------------------------------------------
(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 [X] 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 11,
1999
<PAGE> 2
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Following is an index to the condensed consolidated financial statements of
Wesco Financial Corporation ("Wesco") appearing in this report:
<TABLE>
<CAPTION>
Pages
-----
<S> <C>
Condensed consolidated balance sheet --
September 30, 1999 and December 31, 1998.............................. 4
Condensed consolidated statement of income and
retained earnings -- three- and nine-month periods
ended September 30, 1999 and September 30, 1998........................ 5
Condensed consolidated statement of cash flows -- nine-month
periods ended September 30, 1999
and September 30, 1998................................................. 6
Notes to condensed consolidated financial
statements............................................................. 7-8
</TABLE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
See pages 9 through 13.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits -- Exhibit 27 -- Financial Data Schedule
(b) Reports on Form 8-K -- None
-2-
<PAGE> 3
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 12, 1999 By:
------------------------------------
Jeffrey L. Jacobson
Vice President and
Chief Financial Officer
(principal financial officer)
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<PAGE> 4
WESCO FINANCIAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(Dollar amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Sept. 30, Dec. 31,
1999 1998
---------- ----------
<S> <C> <C>
ASSETS
Cash and cash equivalents ............................ $ 33,233 $ 320,034
Investments:
Securities with fixed maturities .................. 379,775 66,619
Marketable equity securities ...................... 2,217,011 2,778,595
Excess of cost over net assets of acquired business .. 28,752 29,338
Other assets ......................................... 36,790 33,820
---------- ----------
$2,695,561 $3,228,406
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Insurance losses and expenses ........................ $ 35,183 $ 36,731
Notes payable, due mainly November 1, 1999 ........... 33,635 33,635
Income taxes payable, principally deferred ........... 721,989 920,035
Other liabilities .................................... 16,455 14,249
---------- ----------
Total liabilities ................................. 807,262 1,004,650
---------- ----------
Shareholders' equity:
Capital stock and capital in excess of par value ... 30,439 30,439
Unrealized appreciation of investments, net
of taxes ........................................ 1,324,848 1,686,716
Retained earnings .................................. 533,012 506,601
---------- ----------
Total shareholders' equity ........................ 1,888,299 2,223,756
---------- ----------
$2,695,561 $3,228,406
========== ==========
</TABLE>
See notes beginning on page 7.
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<PAGE> 5
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,
1999 1998 1999 1998
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Revenues:
Sales and service revenues ................. $ 15,983 $ 16,253 $ 48,987 $ 51,301
Insurance premiums earned .................. 4,780 4,331 12,769 11,646
Dividend and interest income ............... 12,917 11,050 36,413 31,298
Realized gains on securities and
foreclosed properties ................... -- 314 141 58,422
Other ...................................... 237 207 724 696
--------- --------- --------- ---------
33,917 32,155 99,034 153,363
--------- --------- --------- ---------
Costs and expenses:
Cost of products and services sold ......... 12,685 12,911 38,801 40,701
Insurance losses and expenses .............. 2,947 3,354 6,143 7,623
Selling, general and administrative
expenses ................................ 2,800 2,762 8,133 8,346
Interest on notes payable .................. 747 754 2,243 2,262
--------- --------- --------- ---------
19,179 19,781 55,320 58,932
--------- --------- --------- ---------
Income before income taxes ..................... 14,738 12,374 43,714 94,431
Provision for income taxes ..................... (3,712) (3,016) (11,002) (28,880)
--------- --------- --------- ---------
Net income ................................. 11,026 9,358 32,712 65,551
Retained earnings -- beginning of period ....... 524,086 495,049 506,601 442,914
Cash dividends declared and paid ............... (2,100) (2,029) (6,301) (6,087)
--------- --------- --------- ---------
Retained earnings -- end of period ............. $ 533,012 $ 502,378 $ 533,012 $ 502,378
========= ========= ========= =========
Amounts per capital share based on 7,119,807
shares outstanding throughout each period:
Net income............................... $ 1.54 $ 1.32 $ 4.59 $ 9.21
========= ========= ========= =========
Cash dividends........................... $ .295 $ .285 $ .885 $ .855
========= ========= ========= =========
</TABLE>
See notes beginning 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,
1999 1998
---------- --------
<S> <C> <C>
Cash flows from operating activities, net.................................... $ 25,060 $(18,548)
---------- --------
Cash flows from investing activities:
Proceeds from sales and maturities of investments ........................ 21,772 290,820
Purchases of investments.................................................. (327,839) (8,982)
Other, net .............................................................. 507 1,235
---------- --------
Net cash flows from investing activities............................... (305,560) 283,073
---------- --------
Cash flows from financing activities:
Payment of cash dividends................................................. (6,301) (6,087)
Other, net .............................................................. -- --
---------- --------
Net cash flows from financing activities............................... (6,301) (6,087)
---------- --------
Increase (decrease) in cash and cash equivalents............................. (286,801) 258,438
Cash and cash equivalents -- beginning of period............................. 320,034 10,687
---------- --------
Cash and cash equivalents -- end of period................................... $ 33,233 $269,125
========== ========
Supplementary information:
Interest paid during period............................................... $ 1,542 $ 1,596
========== ========
Income taxes paid, net, during period..................................... $ 14,845 $ 53,494
========== ========
</TABLE>
See notes beginning on page 7.
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<PAGE> 7
WESCO FINANCIAL CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollar amounts in thousands)
(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 32 through 38 of its 1998 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 (all common stocks):
<TABLE>
<CAPTION>
September 30, 1999 December 31, 1998
------------------------- ------------------------
Quoted Market Quoted Market
(Carrying) (Carrying)
Cost Value Cost Value
--------- ---------- --------- ----------
<S> <C> <C> <C> <C>
Freddie Mac.......................................... $ 71,729 $1,497,600 $ 71,729 $1,855,800
The Coca-Cola Company................................ 40,761 347,670 40,761 482,775
The Gillette Company................................. 40,000 217,200 40,000 306,000
Other................................................ 32,038 154,541 32,038 134,020
-------- ---------- -------- ----------
$184,528 $2,217,011 $184,528 $2,778,595
======== ========== ======== ==========
</TABLE>
-7-
<PAGE> 8
Note 4
The Financial Accounting Standards Board requires the reporting of
comprehensive income, which comprises net income and all other changes in net
worth other than additional investments by, or distributions to, shareholders.
Wesco's only type of comprehensive income other than net income has been the net
change in unrealized appreciation of investments, less related income taxes.
The following table sets forth Wesco's consolidated comprehensive income
for the three- and nine-month periods ended September 30, 1999 and 1998:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------------- -------------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1999 1998 1999 1998
--------- --------- --------- -------
<S> <C> <C> <C> <C>
Net income ................................... $ 11,026 $ 9,358 $ 32,712 $65,551
Other comprehensive income -- unrealized
appreciation (depreciation) of investments,
net of income tax effect .................. (212,024) (202,318) (361,868) 5,748
--------- --------- --------- -------
Comprehensive income (loss) ................. $(200,998) $(192,960) $(329,156) $71,299
========= ========= ========= =======
</TABLE>
Note 5
Following is certain condensed consolidated financial information, broken
down as to Wesco's business segments:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------------- -------------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1999 1998 1999 1998
--------- --------- --------- -------
<S> <C> <C> <C> <C>
Insurance segment:
Total revenues........................... $17,433 $14,863 $48,321 $99,359
Net income .............................. 10,671 8,593 31,179 63,153
======= ======= ======= =======
Industrial segment:
Total revenues .......................... $16,005 $16,259 $49,076 $51,370
Net income .............................. 523 632 1,800 2,223
======= ======= ======= =======
Not identified with a business segment:
Total revenues........................... $ 479 $ 1,033 $ 1,637 $ 2,634
Net income (loss)........................ (168) 133 (267) 175
======= ======= ======= =======
</TABLE>
-8-
<PAGE> 9
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 18
through 25 of its 1998 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, 1999 was $1.89 billion ($265
per share) compared to $2.09 billion ($294 per share) at June 30, 1999, $2.22
billion ($312 per share) at December 31, 1998, and $1.83 billion ($257 per
share) at September 30, 1998. These fluctuations were caused mainly by changes
in the unrealized appreciation component, which represented 70%, 73%, 76% and
71%, respectively, of total shareholders' equity. Unrealized appreciation, which
is based on current market quotations, is expected to continue to fluctuate, and
the amount recorded at any date could differ substantially from net gains
ultimately realized.
RESULTS OF OPERATIONS
Following is a breakdown of Wesco's consolidated net (after-tax) income by
business segment (in thousands):
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------------- -------------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1999 1998 1999 1998
--------- -------- --------- -------
<S> <C> <C> <C> <C>
Insurance segment --
Normal' net operating income............... $10,671 $ 8,593 $31,179 $25,383
Realized securities gains ................. -- -- -- 37,770
------- ------- ------- -------
Segment net income......................... 10,671 8,593 31,179 63,153
------- ------- ------- -------
Industrial segment net income (all "normal"
net operating income)....................... 523 632 1,800 2,223
------- ------- ------- -------
Net income (loss) other than from identified
business segments --
"Normal" net operating income (loss)...... (168) (54) (351) (12)
Gains on sales of foreclosed properties... -- 187 84 187
------- ------- ------- -------
Nonsegment net income (loss).............. (168) 133 (267) 175
------- ------- ------- -------
Consolidated net income............... $11,026 $ 9,358 $32,712 $65,551
======= ======= ======= =======
</TABLE>
-9-
<PAGE> 10
Insurance Segment
The insurance segment comprises Wesco-Financial Insurance Company
("Wes-FIC") and The Kansas Bankers Surety Company ("KBS"). Following is a
summary of the "normal" net operating income of the insurance segment, which
represents the combination of underwriting results with dividend and interest
income, less related income taxes (in thousands):
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------------- -------------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1999 1998 1999 1998
--------- --------- --------- -------
<S> <C> <C> <C> <C>
Premiums written.............................. $ 3,614 $ 3,360 $ 13,871 $15,055
====== ======= ======== =======
Premiums earned............................... $ 4,780 $ 4,331 $ 12,769 $11,646
====== ======= ======== =======
Underwriting gain............................. $ 1,616 $ 758 $ 6,018 $ 3,413
Dividend and interest income.................. 12,670 10,554 35,552 29,605
------ ------- -------- -------
14,286 11,312 41,570 33,018
Income tax provision.......................... (3,615) (2,719) (10,391) (7,635)
------ ------- -------- -------
Insurance segment "normal" net
operating income............................ $10,671 $ 8,593 $ 31,179 $25,383
======= ======= ======== =======
</TABLE>
Premiums written and earned by the insurance group are reported net of
amounts ceded to reinsurers, and are credited for amounts returned by reinsurers
upon changes in contractual terms.
Premiums written for the first nine months of 1999 included $2.4 million
attributable to Wes-FIC and $11.5 million attributable to KBS, and included $3.6
million written by KBS in the third quarter. Premiums written for the first nine
months of 1998 included $2.1 million attributable to Wes-FIC and $13.0 million
attributable to KBS. Of those amounts, $0.1 million and $3.3 million were
written in the third quarter. The decrease in premiums written by KBS in the
first nine months of 1999 from the comparable figure for 1998 was attributable
to the inclusion in the 1998 figure of $2.6 million of unearned premiums
returned to it by reinsurers in the first quarter of 1998 upon KBS's
restructuring of its reinsurance program at that time. Excluding that amount,
premiums written by KBS for the third quarter and first nine months of 1999
increased about 10% and 9% over last year's comparable figures.
Earned premiums for the third quarter and first nine months of 1999
included $3.9 million and $11.1 million attributable to KBS, versus $3.5 million
and $10.1 million attributable to KBS for the comparable periods of 1998. The
remainder in each period was attributable to Wes-FIC.
The underwriting gains reported for the periods shown above were
attributable mainly to the profitable underwriting results of KBS, and are net
of goodwill amortization of $.2 million per calendar quarter. The improvement of
underwriting results from 1998 to 1999 resulted mainly from decreases in losses
incurred by KBS.
-10-
<PAGE> 11
Dividend and interest income earned by the insurance segment increased for
the third quarter and first nine months of 1999 over the comparable 1998 figures
due to an increase in interest-bearing investments, as well as dividend
increases on most common stock investments.
The income tax provision of the insurance segment generally fluctuates
somewhat as a percentage of its pre-tax income mainly due to fluctuations in the
relationship of substantially tax-exempt components of income to total pre-tax
income.
Industrial Segment
Following is a summary of the results of operations of the industrial
segment, consisting of the businesses of Precision Steel Warehouse, Inc. and its
subsidiaries (in thousands):
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------------- -------------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1999 1998 1999 1998
--------- --------- --------- -------
<S> <C> <C> <C> <C>
Revenues, principally sales
and services.............................. $16,005 $16,259 $49,076 $51,370
======= ======= ======= =======
Income before income taxes.................... $ 868 $ 1,050 $ 2,989 $ 3,692
Income tax provision.......................... (345) (418) (1,189) (1,469)
------- ------- ------- -------
Industrial segment net income................. $ 523 $ 632 $ 1,800 $ 2,223
======= ======= ======= =======
</TABLE>
Revenues of Precision Steel's businesses for the third quarter and first
nine months of 1999 decreased $0.3 million and $2.3 million, or approximately 2%
and 4%, respectively, from those reported for the corresponding periods of 1998.
However, pounds of steel products sold increased by 2.4% for the third quarter
and 0.7% for the first nine months. Precision Steel's management attributes this
apparent anomaly principally to a change in mix of products sold toward
lower-priced items, and a decline in selling prices of higher-margin items
following price decreases by mills and other suppliers.
Income before income taxes and net income of the industrial segment are
dependent not only on revenues, but also on operating expenses and the cost of
products sold. The latter, as a percentage of revenues, amounted to 79.4% for
each of the third quarters of 1999 and 1998, and 79.2% and 79.3% for the
corresponding nine-month periods. The cost percentage typically fluctuates
slightly from period to period as a result of changes in product mix and price
competition at all levels.
Other Than Identified Business Segments
In the absence of nonoperating or unusual items such as securities gains or
losses, net income or loss other than from identified business segments
typically fluctuates from period to period but is usually not significant in
amount. It includes mainly (1) dividend and interest income from marketable
-11-
<PAGE> 12
securities and cash equivalents owned outside the insurance segment and (2)
rental income from owned commercial real estate, reduced by (1) the costs
associated with the development and liquidation of foreclosed real estate
formerly owned by a savings and loan subsidiary and (2) interest and other
corporate expenses -- plus or minus income taxes related to such "normal"
nonsegment items.
* * * * *
Realized gains and losses -- reflected on the consolidated statement of
income when securities are sold, or when required by other events -- tend to
fluctuate in amount from period to period, sometimes impacting net income
significantly. However, the amount of realized gain or loss has no predictive
value, and variations in amount from period to period have no practical
analytical value, particularly in view of the substantial unrealized price
appreciation now existing in Wesco's consolidated investment portfolio. (Wesco's
shareholders' equity at September 30, 1999 contained $1.3 billion, or $186 per
share, of unrealized appreciation of investments, net of taxes -- about 70% of
shareholders' equity.)
Wesco did not realize any securities gains in the first nine months of
1999. However, Wesco's consolidated earnings for the first nine months of 1998
included realized gains of $37.8 million, after income taxes, all realized in
the second quarter. The gains reported for 1998, although material in relation
to Wesco's 1998 earnings, had only a minor impact on Wesco's total shareholders'
equity: Wesco's investments are carried at market value, and most of the gains
had already been reflected in the unrealized appreciation component of its
shareholders' equity.
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 25.2% and 24.4% for the quarters ended September 30, 1999 and
September 30, 1998, and 25.2% and 30.6% for the respective nine-month periods.
Consolidated revenues, expenses and net income reported for any period are
not necessarily indicative of future revenues, expenses and net income in that
they are subject to significant variations in amount and timing of securities
gains and losses and the possible occurrence of other unusual nonoperating
items. In addition, consolidated revenues, expenses and net income from
operations are expected to be much more volatile than they were prior to
Wes-FIC's entry into the super-catastrophe reinsurance business and, to a lesser
degree, the restructuring of KBS's reinsurance program in 1998.
Shareholders' equity is impacted not only to the extent that unusual items
affect earnings, but also to reflect changes in unrealized appreciation of
investments, which are not reflected in net income.
-12-
<PAGE> 13
MARKET RISK ANALYSIS
The table below shows the effects as of September 30, 1999 of a
hypothetical 30% overall increase or decrease in market prices of marketable
equity securities (including, for this purpose, convertible preferred stock
selling significantly above conversion price) owned by Wesco and its
subsidiaries. These changes result in a pro forma 23.5% increase or decrease in
shareholders' equity (in thousands):
<TABLE>
<CAPTION>
Increase Decrease
---------- ----------
<S> <C> <C>
Market value of securities:
As recorded .................................... $2,275,890 $2,275,890
Hypothetical (assuming 30% change).............. $2,958,657 $1,593,123
Shareholders' equity
As recorded..................................... $1,888,299 $1,888,299
Pro forma (results in 23.5% change)............. $2,332,098 $1,444,500
</TABLE>
In all other respects the discussion and analysis of market risks
associated with the Wesco group appearing on pages 22 and 23 of Wesco's 1998
Form 10-K Annual Report are considered still generally appropriate.
YEAR 2000 EXPOSURE
On page 24 of Wesco's 1998 Form 10-K Annual Report is an explanation of
potential exposures that could result from the failure of Wesco, or of its
affiliates, non-subsidiary investees, customers or suppliers, or of governmental
bodies, to prepare for so-called Year 2000 problems. Wesco's management believes
the explanation of potential exposures continues to be appropriate.
Wesco and its subsidiaries are continuing their ongoing efforts to
identify, remediate and test their systems, monitor the disclosures of their
significant investees, and consider contingency plans to deal with certain Year
2000 issues in the event remediation efforts by themselves or others prove
unsuccessful. Thus far, Wesco and its subsidiaries have incurred approximately
$.5 million, after income tax benefit, in Year 2000-related costs, including $.1
million, after taxes, charged to expense in the first nine months of 1999.
Future outlays are not expected to be significant.
FORWARD-LOOKING STATEMENTS
Certain written or oral representations of management stated herein or
elsewhere constitute "forward-looking" statements within the meaning of the
Private Securities Litigation Reform Act of 1995, as contrasted with statements
of historical fact. Forward-looking statements include statements which are
predictive in nature, or which depend upon or refer to future events or
conditions, or which include words such as expects, anticipates, intends, plans,
believes, estimates, may, or could, or which involve hypothetical events. For
example, the preceding sections on Market Risk Analysis and Year 2000 Exposure
contain several forward-looking statements. Forward-looking statements are based
on information currently available and are subject to various risks and
uncertainties that could cause actual events or results to differ materially
from those characterized as being likely or possible to occur.
-13-
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 33,233
<SECURITIES> 2,596,786
<RECEIVABLES> 11,275
<ALLOWANCES> (94)
<INVENTORY> 11,298
<CURRENT-ASSETS> 0
<PP&E> 29,853
<DEPRECIATION> (18,193)
<TOTAL-ASSETS> 2,695,561
<CURRENT-LIABILITIES> 0
<BONDS> 33,635
0
0
<COMMON> 7,120
<OTHER-SE> 1,881,179
<TOTAL-LIABILITY-AND-EQUITY> 2,695,561
<SALES> 48,987
<TOTAL-REVENUES> 99,034
<CGS> 38,801
<TOTAL-COSTS> 44,944
<OTHER-EXPENSES> 8,733
<LOSS-PROVISION> (600)
<INTEREST-EXPENSE> 2,243
<INCOME-PRETAX> 43,714
<INCOME-TAX> (11,002)
<INCOME-CONTINUING> 32,712
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 32,712
<EPS-BASIC> 4.59
<EPS-DILUTED> 4.59
</TABLE>
