<PAGE>
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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 March 31, 1994
Commission file number 1-1969
CERIDIAN CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 52-0278528
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
8100 34th Avenue South, Minneapolis, Minnesota 55425
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (612)853-8100
(Former name, former address and former fiscal year if changed from 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
The number of shares of registrant's Common Stock, par value $.50 per share,
outstanding as of April 30, 1994, was 44,466,968.
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CERIDIAN CORPORATION AND SUBSIDIARIES
FORM 10-Q
INDEX
Pages
Part I. Financial Information
Item 1. Financial Statements
Consolidated Statements of Operations
for the three month periods ended
March 31, 1994 and 1993 ................................. 3
Consolidated Balance Sheets as of
March 31, 1994 and December 31, 1993 .................... 4
Consolidated Statements of Cash Flows for the three
month periods ended March 31, 1994 and 1993 ............. 5
Notes to Consolidated Financial Statements .............. 6- 7
In the opinion of the Company, the unaudited consolidated
financial statements reflect all adjustments (consisting only of
normal recurring accruals, except as set forth in the notes to
consolidated financial statements) necessary to present fairly
the financial position as of March 31, 1994, and results of
operations and cash flows for the three month periods ended
March 31, 1994 and 1993.
The results of operations for the three month period ended
March 31, 1994, are not necessarily indicative of the results to
be expected for the full year.
The consolidated financial statements should be read in
conjunction with the notes to consolidated financial statements.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations ................. 8-13
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K .................... 14
Signature ......................................................... 15
Exhibit 11. Statement re computation of per share earnings ........ 16
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FORM 10-Q
PART I. FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF OPERATIONS Ceridian Corporation
(Unaudited) and Subsidiaries
For Periods Ended March 31,
Three Months
1994 1993
(Dollars in millions, except per share data)
<S> <C> <C>
Revenue
Product sales $ 112.5 $ 109.7
Services 108.8 114.7
Total 221.3 224.4
Cost of revenue
Product sales 90.3 88.5
Services 48.3 63.8
Total 138.6 152.3
Gross profit 82.7 72.1
Operating expenses
Selling, general and
administrative 46.9 43.0
Technical expense 12.8 12.2
Other expense (income) 0.4 --
Earnings before interest and taxes 22.6 16.9
Interest income 1.9 1.6
Interest expense (0.4) (4.0)
Earnings before income taxes 24.1 14.5
Income tax provision 1.9 1.6
Net earnings $ 22.2 $ 12.9
Preferred stock dividends 3.2 --
Net earnings available to common
stockholders $ 19.0 $ 12.9
Primary earnings per share $ 0.42 $ 0.30
Fully-diluted earnings per share $ 0.40 $ 0.30
Weighted average common shares
and equivalents outstanding (000's)
Primary 45,584 42,833
Fully-diluted 55,968 42,833
See notes to consolidated financial statements.
</TABLE>
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<TABLE>
<CAPTION>
FORM 10-Q
CONSOLIDATED Ceridian Corporation
BALANCE SHEETS (Unaudited) and Subsidiaries
March 31, December 31,
Assets 1994 1993
(In Millions)
<S> <C> <C>
Cash and equivalents $ 120.0 $ 112.4
Short-term investments 78.8 103.4
Trade and other receivables, net 128.7 133.0
Inventories 26.4 30.9
Other current assets 6.3 7.5
Total current assets 360.2 387.2
Investments and advances 28.3 28.2
Property, plant and equipment, net 90.1 88.7
Other noncurrent assets 112.7 111.6
Total assets $ 591.3 $ 615.7
Liabilities And Stockholders' Equity
Short-term debt and current
portion of long-term obligations $ 1.7 $ 3.1
Accounts payable 33.3 40.0
Customer advances 27.7 47.6
Deferred income 26.2 22.9
Accrued taxes 54.1 54.2
Employee compensation and benefits 38.2 44.4
Restructure reserves, current portion 35.5 44.8
Other accrued expenses 65.9 59.4
Total current liabilities 282.6 316.4
Long-term obligations, less current portion 16.2 16.3
Deferred income taxes 7.2 6.4
Restructure reserves, less current portion 51.1 63.2
Other noncurrent liabilities 101.7 102.1
Stockholders' equity 132.5 111.3
Total liabilities and stockholders'
equity $ 591.3 $ 615.7
See notes to consolidated financial statements.
</TABLE>
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<TABLE>
<CAPTION>
FORM 10-Q
CONSOLIDATED STATEMENTS OF Ceridian Corporation
CASH FLOWS (Unaudited) and Subsidiaries
For Periods Ended March 31,
Three Months
1994 1993
(In Millions)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings $ 22.2 $ 12.9
Adjustments to reconcile earnings (loss)
to net cash provided by (used for)
operating activities:
Depreciation 6.6 6.6
Amortization of deferred assets 0.9 0.8
Restructure reserves:
Reserves utilized (22.2) (30.5)
Net change in working capital items:
Trade and other receivables (11.9) 12.1
Inventories 4.5 3.2
Other current assets 1.2 (1.9)
Accounts payable (6.7) 5.9
Customer advances and deferred income (16.7) (0.2)
Other current liabilities 0.4 (5.7)
Other (2.4) 1.2
Net cash provided by (used for)
operating activities (24.1) 4.4
CASH FLOWS FROM INVESTING ACTIVITIES
Expended for capital assets and software (7.7) (6.3)
Short-term investments 24.6 18.4
Proceeds from sales of businesses,
investments and capital assets 2.0 0.1
Other 0.1 --
Net cash provided by (used for)
investing activities 19.0 12.2
CASH FLOWS FROM FINANCING ACTIVITIES
Short-term debt, net (1.6) --
Reduction of long-term debt -- (1.8)
Proceeds from sale of 5-1/2% Preferred Stock 15.0 --
Preferred stock dividends (3.2) --
Exercise of stock options and other 2.5 0.4
Net cash provided by (used for)
financing activities 12.7 (1.4)
NET CASH PROVIDED (USED) 7.6 15.2
Cash and equivalents at beginning of period 112.4 88.4
Cash and equivalents at end of period $ 120.0 $ 103.6
See notes to consolidated financial statements.
</TABLE>
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FORM 10-Q
CERIDIAN CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
March 31, 1994
(Dollars in millions)
(Unaudited)
CASH AND SHORT-TERM INVESTMENTS
The Company has an arrangement with an independent investment manager
to invest its cash in excess of estimated current requirements in
investment-grade fixed income securities which may have final maturities of
up to two years. Investments which are readily convertible to cash within
three months of purchase are classified in the balance sheet as cash
equivalents. Investments with longer maturities are considered available-
for-sale under FAS 115, adopted January 1994, and reported in the balance
sheet as short-term investments. The fair value of short-term investments
is not materially different from their amortized cost, and the amount of
investments expected to be held more than one year beyond the balance sheet
date is not considered material. Net changes in short-term investments,
which are shown as investing cash flows in the Statements of Cash Flows, may
relate to investment decisions by the independent investment manager as well
as to changes in the cash needs of the Company.
<TABLE>
<CAPTION>
STOCKHOLDERS' EQUITY
March 31, December 31,
1994 1993
<S> <C> <C>
5-1/2% Cumulative Convertible Exchangeable
Preferred Stock, $100 par value
(liquidation preference of $236.0)
Shares issued and outstanding 47,200 $ 4.7 $ 4.7
Common Stock
Par value - $.50
Shares authorized - 100,000,000
Shares issued - 44,487,266 and
44,263,369 22.2 22.1
Shares outstanding - 44,403,028 and
44,181,631
Additional paid-in capital 826.2 824.2
Accumulated deficit (710.8) (729.8)
Foreign currency translation adjustments (2.0) (2.0)
Restricted stock awards (2.1) (2.2)
Pension liability adjustment (4.1) (4.1)
Treasury stock, at cost (84,238 and 81,738 (1.6) (1.6)
common shares)
Total stockholders' equity $ 132.5 $ 111.3
</TABLE>
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FORM 10-Q
CERIDIAN CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
March 31, 1994
(Dollars in millions)
(Unaudited)
RECEIVABLES March 31, December 31,
1994 1993
Trade, less allowance $ 66.5 $ 69.2
Unbilled 54.4 45.5
Other 7.8 18.3
Total $128.7 $133.0
The decrease in other receivables is due principally to the collection
in January 1994 of a $15.5 receivable representing a commitment by the
underwriters of the Company's December 1993 offering of 5 1/2% Preferred
Stock to exercise their overallotment option to the extent of an additional
320,000 Depositary Shares. This amount, less certain expenses related to
that offering, is presented as a $15.0 financing cash inflow in the
accompanying Consolidated Statements of Cash Flows.
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CERIDIAN CORPORATION AND SUBSIDIARIES
FORM 10-Q
March 31, 1994
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Results of Operations
For the quarter ended March 31, 1994, Ceridian Corporation (the
"Company") reported net earnings after preferred stock dividends of $19.0
million, or $.40 per fully-diluted share of common stock, on revenue of
$221.3 million, compared to net earnings of $12.9 million, or $.30 per
common share, on revenue of $224.4 million for the first quarter 1993.
The following table sets forth revenue for the Company, its two
industry segments and the businesses that comprise those segments for the
three month periods ended March 31, 1994 and March 31, 1993, respectively:
Periods Ended March 31,
Three Months
(Dollars in millions) 1994 1993
Information Services Segment
Arbitron Company $ 28.3 $ 42.8
Ceridian Employer Services 77.5 61.2
Other Services(1) 4.6 5.2
Total Information Services 110.4 109.2
Defense Electronics Segment
Computing Devices International(2) 110.9 115.2
Total Revenue $ 221.3 $ 224.4
_____________________
(1) Primarily consists of revenue from TeleMoney Services and the
Company's related computer and network operations, which were sold in
May 1994.
(2) Responsibility for the Company's Business Information Services
operation ("BIS") was transferred to Computing Devices effective January 1,
1994. BIS' results for the 1993 and 1994 periods are included in Computing
Devices' results.
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CERIDIAN CORPORATION AND SUBSIDIARIES
FORM 10-Q
March 31, 1994
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Results of Operations (cont.)
The following table sets forth the percentage of the Company's total
revenue by industry segment, the gross profit of each of the Company's
industry segments as a percentage of that segment's revenue, and certain
items in the consolidated statements of operations as a percentage of total
revenue, for the periods indicated.
Quarter Ended March 31,
1994 1993
Revenue:
Information Services 49.9% 48.7%
Defense Electronics 50.1% 51.3%
Total revenue 100.0% 100.0%
Gross profit:
Information Services 55.3% 47.3%
Defense Electronics 19.4% 17.7%
Total gross profit 37.3% 32.1%
Operating expenses
Selling, general & administrative 21.1% 19.2%
Technical 5.8% 5.4%
Other expense (income) 0.2% --
Total operating expenses 27.1% 24.6%
Earnings before interest & taxes 10.2% 7.5%
Interest income (expense) 0.7% (1.1%)
Earnings before income taxes 10.9% 6.4%
Income tax provision 0.9% 0.7%
Preferred stock dividends 1.4% --
Net earnings available to common
stockholders 8.6% 5.7%
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CERIDIAN CORPORATION AND SUBSIDIARIES
FORM 10-Q
March 31, 1994
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Results of Operations (cont.)
Revenue. The slight increase in Information Services' revenue from the
first quarter 1993 to the first quarter 1994 reflected revenue growth in
Employer Services that was almost entirely offset by a revenue decrease in
Arbitron. The largest portion of the revenue growth in Employer Services
related to its payroll tax filing operations, reflecting the October 1993
acquisition of the Systems Tax Service ("STS") tax filing business and a
higher percentage of Employer Services' payroll processing customers
electing to also utilize its tax filing service, thereby resulting in
increased fees and increased interest income due to larger average balances
of payroll tax filing deposits in the 1994 quarter. Revenue from Employer
Services' payroll processing operations increased approximately 10%,
benefitting from new customer installations and an increased retention rate
for existing customers. Employer Services' revenue and profitability tend
to be the greatest in the first and fourth quarters of each year because of
customers' year-end reporting requirements and greater tax filing deposit
balances in the first quarter. The acquisition of STS has increased the
first quarter orientation of this seasonality. The revenue decrease in
Arbitron was principally due to the discontinuance of Arbitron's television
ratings service, which had provided $13.3 million of revenue in the first
quarter 1993, effective the end of 1993. Also contributing to the decrease
was the year-end 1993 transfer of contracts with certain advertising
agencies for commercial monitoring services from Arbitron to the Competitive
Media Reporting joint venture ("CMR"), which decreased Arbitron's revenue in
the quarterly comparison by about $3 million. Revenue from the other
aspects of Arbitron's business, principally its radio ratings service,
increased approximately 7% in the quarterly comparison.
The decrease in Computing Devices' revenue in the quarterly comparison
was due to the near completion at year-end 1993 of a contract to manufacture
equipment for Control Data Systems, Inc. and the July 1993 sale of the
Company's Barrios Technology subsidiary, activities which together had
provided $15.1 million of revenue in the first quarter 1993. Partially
offsetting this decrease were increased billings under the Iris contract to
provide a communications system to the Canadian defense department.
Gross Margin. The most significant factor in the gross margin
improvement in Information Services was the discontinuance of Arbitron's
unprofitable television ratings service at the end of 1993. Employer
Services' gross margin increased modestly in the quarterly comparison,
primarily reflecting the gross margin improvement in its tax filing
operations as a result of the acquisition of STS, the successful
consolidation of tax filing activity on STS' more highly automated system
and generally higher business volume.
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CERIDIAN CORPORATION AND SUBSIDIARIES
FORM 10-Q
March 31, 1994
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Results of Operations (cont.)
The improvement in Computing Devices' gross margin in the quarterly
comparison was primarily due to reduced revenue from the manufacture of
equipment for Control Data Systems, which had lower gross margins than most
other aspects of Computing Devices' business, increased gross margins on the
Iris contract as certain developmental milestones have been achieved
beginning in the second half of 1993, and actions taken in 1993 to reduce
employment levels in Computing Devices' U.S. operations. Partially
offsetting these improvements was the gross margin decrease in Computing
Devices' U.K. operations, due largely to decreased demand for the production
of an avionics computer for the Hawk aircraft.
Operating Expenses. The Company-wide increase in selling, general and
administrative ("SG&A") expenses, both in dollars and as a percentage of
revenue, reflected increases in both industry segments.
In Information Services, SG&A expenses increased from 30.7% of revenue
in the first quarter 1993 to 33.3% of revenue in the first quarter 1994.
The primary factor in this percentage increase was the sizeable decrease in
Arbitron's revenue as a result of the discontinuance of its television
ratings service, and the proportionately smaller decrease in SG&A expenses.
To a significant degree, this reflects the past dependence of the radio and
television services on a common support structure and the need to continue
much of that structure for the radio ratings service. Although the dollar
amount of SG&A expenses, particularly selling expense, increased in Employer
Services in the quarterly comparison, these expenses decreased as a
percentage of revenue. SG&A expenses were reduced in both dollars and as a
percentage of revenue in Other Services, reflecting actions affecting the
Company's network operations. Computing Devices' SG&A expenses increased
from 7.5% to 8.0% of revenue in the quarterly comparison, primarily due to
increased selling expense in its Business Information Services operation.
Technical expense for the Company, which includes research and
development, product improvement and bid and proposal costs, increased from
5.4% of revenue in the first quarter 1993 to 5.8% of revenue in the first
quarter 1994. Contributing to this increase was the rise in research and
development expenses in Computing Devices, which increased from 4.6% of
revenue in the first quarter 1993 to 5.3% of revenue in the first quarter
1994. Other expense in the first quarter 1994 primarily consisted of the
Company's share of the loss of the CMR joint venture.
Earnings Before Interest and Taxes. The increase in the Company's
earnings before interest and taxes ("EBIT") from the first quarter 1993 to
the first quarter 1994 was primarily due to increased EBIT in the
Information Services segment, reflecting increased EBIT in both Employer
Services and Arbitron, and reduced losses in Other Services. Information
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CERIDIAN CORPORATION AND SUBSIDIARIES
FORM 10-Q
March 31, 1994
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Results of Operations (cont.)
Services' EBIT increased from 10.2% of revenue in the first quarter 1993 to
17.1% in the first quarter 1994. Over the same period, Computing Devices'
EBIT increased from 5.7% to 6.1% of revenue.
Interest Income and Expense and Taxes. The decrease in interest
expense from the first quarter 1993 to the first quarter 1994 reflected the
redemption at the end of 1993 of $163.5 million in principal amount of the
Company's 8 1/2% Convertible Subordinated Debentures with the majority of
the proceeds of the sale of the Company's 5 1/2% Cumulative Convertible
Exchangeable Preferred Stock ("5 1/2% Preferred Stock"). The increase in
interest income in the quarterly comparison reflected the higher balances of
cash, cash equivalents and short-term investments in the first quarter 1994
as a result of the 5 1/2% Preferred Stock offering. The provisions for
income taxes for the first quarter of 1993 and 1994 primarily represent tax
charges related to the Company's international operations.
Financial Condition
The Company's cash, cash equivalents and short-term investments
decreased from $215.8 million at December 31, 1993 to $198.8 million at
March 31, 1994. The portion of the December 31 balance that represented
amounts subject to restrictions was $22.7 million, while the comparable
March 31 figure was $3.1 million. The majority of the restricted cash at
year-end 1993 represented the remaining portion of a customer advance
received in connection with Computing Devices' Iris contract, while the
restricted cash at March 31 represented amounts pledged in connection with
Employer Services' interest rate swap agreements and in connection with
letters of credit required by Computing Devices' Canadian subsidiary.
In April 1994, the Company received $34 million as the last scheduled
customer advance in connection with the Iris contract, and in May 1994
received $24.7 million from the sale of its TeleMoney business. In
connection with that sale, the Company has agreed to pay various costs
associated with the transaction and the business, and to purchase future
services from the business on a take-or-pay basis.
During the first three months of 1994, operating cash flows, consisting
for the most part of net earnings adjusted to a cash basis, restructuring
payments and the net change in working capital items utilized $24.1 million
of cash, after having provided $4.4 million of cash in the first quarter
1993. Net earnings adjusted to a cash basis provided cash of $27.3 million
in the first quarter 1994 and $21.5 million in the first quarter 1993. An
increase in working capital utilized $29.2 million of cash in the 1994
period, while a reduction in working capital provided $13.4 million of cash
in the 1993 period. Reflected in the first quarter 1994 cash utilized in
connection with working capital items was a $19.9 million reduction in
customer advances and an $11.9 million increase in trade and other
receivables. Both of these changes principally related to Computing
Devices' Iris contract, as the most recent in a series of semiannual
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CERIDIAN CORPORATION AND SUBSIDIARIES
FORM 10-Q
March 31, 1994
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Financial Condition (cont.)
customer advances in connection with that contract was utilized. Payments
of restructure liabilities were $22.2 million and $30.5 million in the first
quarters of 1994 and 1993, respectively. The first quarter 1994 restructure
payments included amounts attributable to the discontinuance of Arbitron's
television ratings service, amounts payable in connection with excess
facilities, and amounts paid in connection with the Company's disposition of
its remaining interests in Business and Technology Centers ("BTCs") and BTC
partnerships. At March 31, 1994, the Company reported accrued restructure
liabilities of $86.6 million. The portion of these liabilities estimated to
require cash outlays during the remainder of 1994 is approximately $25
million.
Investing activities provided $19.0 million of cash during the first
quarter 1994 and $12.2 million in the first quarter 1993. Cash provided
from the of short-term investments totalled $24.6 million and $18.4 million
in the 1994 and 1993 first quarter, respectively, as the Company's
independent investment manager reduced average maturities in both periods.
Amounts expended for capital assets and software in those periods totalled
$7.7 million and $6.3 million, in the respective periods.
Cash flows from financing activities produced $12.7 million in cash
during the first quarter 1994, primarily due to the receipt of an additional
$15.0 million in net cash proceeds from the closing of the sale by the
Company of additional shares of 5 1/2% Preferred Stock, as a result of the
underwriters' exercise of their overallotment option. During the first
quarter 1993, financing activities used $1.4 million of cash.
Under the Iris contract, Computing Devices has received semiannual
advance payments from the Canadian Government, generally in April and
October of each year, each such payment covering a substantial portion of
the expected contract billings prior to the next scheduled advance payment.
As noted, the last of these advance payments was received in April 1994.
Computing Devices is now receiving monthly progress payments under that
contract, each of which will be subject to a percentage holdback. On the
achievement of each quarterly milestone, 50% of the cumulative holdback will
be released. This change in the contractual payment mechanism during 1994
will substantially increase the working capital requirements of Computing
Devices in 1994 and future years as compared to 1993.
During May 1994, the Company expects to conclude a one year extension
of its $35 million domestic revolving credit facility which was otherwise
scheduled to expire on May 31, 1994. Under the expected terms of the
extension, the Company would be provided with credit availability equal to
the lesser of $35 million or 75% of the amount of its eligible accounts
receivable until May 30, 1995, all of which may be used to obtain revolving
loans or standby letters of credit which may not have a final expiration
date later than May 30, 1996. The Company expects that the credit facility
as extended will be unsecured. At April 30, 1994, there were $4.5 million
in letters of credit and no revolving loans outstanding under the facility.
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CERIDIAN CORPORATION AND SUBSIDIARIES
FORM 10-Q
March 31, 1994
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits.
Exhibit Description
11 Statement re computation of per share
earnings
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this Quarterly Report on Form 10-Q for the
period ended March 31, 1994, to be signed on its behalf by the undersigned
thereunto duly authorized.
CERIDIAN CORPORATION
Registrant
Date: May 12, 1994 /s/L. D. Gross
L. D. Gross
Vice President and
Corporate Controller
(Principal Accounting Officer)
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EXHIBIT INDEX
Exhibit
No. Description Code
11. Statement re computation of earnings (loss) per share E
Legend: (E) Electronic Filing
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Exhibit 11
CERIDIAN CORPORATION AND SUBSIDIARIES
COMPUTATION OF EARNINGS (LOSS) PER SHARE
(Amounts in millions, except per share data) Three Months
For the periods ended March 31, 1994 1993
Net earnings available to common 19.0
$ $ 12.9
stockholders - primary
Restore dividends on convertible
preferred stock (a) 3.2 0.0
Net earnings 22.2 12.9
Restore interest expense on convertible
debentures (a) (b) 0.0 3.5
Net earnings for fully-diluted earnings 22.2
$ $ 16.4
per share
Weighted average common shares 44.4 42.8
outstanding
Common share equivalents from stock
options (c) 1.2 0.7
Weighted average common shares and 45.6 43.5
equivalents outstanding - primary
Shares issuable assuming conversion of 10.4 0.0
preferred stock (a)
Shares issuable assuming conversion of
debentures (a) 0.0 6.8
Weighted average common shares and
equivalents outstanding - adjusted for
full dilution 56.0 50.3
Net earnings available to common
stockholders - primary 19.0
$ $ 12.9
Weighted average common shares and
equivalents
outstanding - primary (c) 45.6 43.5
Primary earnings per share $ $
0.42 0.30
Net earnings for fully-diluted earnings
per share $ 22.2 $ 16.4
Weighted average common shares and
equivalents outstanding - adjusted for
full dilution 56.0 50.3
Fully-diluted earnings per share (c) $ 0.40 $ 0.33
(a) Convertible preferred stock issued and convertible
debentures redeemed in December 1993.
(b) Net of income tax effect which is nil.
(c) Common stock equivalents and shares issuable assuming
conversion of convertible debentures not reported in 1993
because the result is anti-dilutive or additional dilution
is less than 3% as prescribed by APBO No. 15. This
calculation is submitted in accordance with Regulation S-X
item 601(b)(11).
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