<PAGE> 1
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
Commission file number 0-3880
TOM BROWN, INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 95-1949781
------------------------------- ------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
P. O. Box 2608
500 Empire Plaza Bldg.
Midland, Texas 79701
- ---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
915-682-9715
----------------------------------------------------
(Registrant's telephone number, including area code)
NOT APPLICABLE
---------------------------------------------------
(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 CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of May 9, 1997.
Class of Common Stock Outstanding at May 9, 1997
--------------------- --------------------------
$.10 par value 23,944,044
<PAGE> 2
TOM BROWN, INC. AND SUBSIDIARIES
QUARTERLY REPORT FORM 10-Q
INDEX
Page No.
Part I. Financial Information:
Consolidated Balance Sheets,
March 31, 1997 and December 31, 1996 4
Consolidated Statements of Operations,
Three Months ended March 31, 1997 and 1996 6
Consolidated Statements of Cash Flows,
Three Months ended March 31, 1997 and 1996 7
Notes to Consolidated Financial Statements 9
Management's Discussion and Analysis of
Financial Condition and Results of
Operations 12
Part II. Other Information:
Item 6. Exhibits and Reports on Form 8-K 16
Signature 17
2
<PAGE> 3
TOM BROWN, INC.
P. O. Box 2608
500 Empire Plaza Bldg.
Midland, Texas 79701
----------------------
QUARTERLY REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
FORM 10-Q
-----------------------
PART I OF TWO PARTS
FINANCIAL INFORMATION
3
<PAGE> 4
TOM BROWN, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
(in thousands)
<TABLE>
<CAPTION>
March 31, 1997 December 31, 1996
-------------- -----------------
(Unaudited)
<S> <C> >C>
CURRENT ASSETS:
Cash and cash equivalents $ 22,347 $ 20,504
Accounts receivable 21,422 33,080
Inventories 1,442 1,374
Other 527 889
------- -------
Total current assets 45,738 55,847
------- -------
PROPERTY AND EQUIPMENT, AT COST:
Oil and gas properties, based on the
successful efforts accounting method 443,670 436,879
Other equipment 37,400 35,216
------- -------
481,070 472,095
Less: Accumulated depreciation
and depletion 133,530 124,834
------- -------
Net property and equipment 347,540 347,261
------- -------
OTHER ASSETS:
Deferred income taxes, net - 2,865
Other assets 388 401
------- -------
Total other assets 388 3,266
------- -------
$393,666 $406,374
======= =======
</TABLE>
(continued)
See accompanying notes to consolidated financial statements.
4
<PAGE> 5
TOM BROWN, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
(in thousands)
<TABLE>
<CAPTION>
March 31, 1997 December 31, 1996
-------------- -----------------
(Unaudited)
<S> <C> <C>
CURRENT LIABILITIES:
Accounts payable $ 22,874 $ 25,033
Accrued expenses 6,503 10,562
------- -------
Total current liabilities 29,377 35,595
------- -------
BANK DEBT 105,000 119,000
OTHER NON-CURRENT LIABILITIES 6,459 5,643
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Convertible preferred stock,
$.10 par value.
Authorized 2,500,000 shares;
1,000,000 shares outstanding
with a liquidation preference
of $25,000,000. 100 100
Common stock, $.10 par value.
Authorized 40,000,000 shares;
Outstanding 23,944,044 and
23,898,431 shares, respectively. 2,394 2,390
Additional paid-in capital 308,306 307,631
Accumulated deficit (57,970) (63,985)
------- -------
Total stockholders' equity 252,830 246,136
------- -------
$393,666 $406,374
======= =======
</TABLE>
See accompanying notes to consolidated financial statements.
5
<PAGE> 6
TOM BROWN, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands)
<TABLE>
<CAPTION>
Three Months ended
March 31,
-------------------------------
1997 1996
--------- -------
(Unaudited)
<S> <C> <C>
REVENUES:
Gas and oil sales $ 28,546 $ 8,433
Marketing, gathering and processing 7,318 4,654
Interest income and other 486 118
------ ------
Total revenues 36,350 13,205
------ ------
COSTS AND EXPENSES:
Gas and oil production 4,227 1,439
Taxes on gas and oil production 2,090 697
Cost of gas sold 6,196 3,651
Exploration costs 1,121 411
Impairments of leasehold costs 180 65
General and administrative 2,397 1,354
Depreciation, depletion and
amortization 8,696 3,717
Interest expense and other 1,962 7
------ ------
Total costs and expenses 26,869 11,341
------ ------
Income before income taxes 9,481 1,864
Income tax expense (3,028) (634)
------ ------
Net income 6,453 1,230
------ ------
Preferred stock dividend (438) (360)
------ ------
Net income available to
common shareholders $ 6,015 $ 870
------ ------
Weighted average number of
common shares outstanding 25,104 21,113
------ ------
Net income per common share $ .24 $ .04
------ -----
</TABLE>
See accompanying notes to consolidated financial statements.
6
<PAGE> 7
TOM BROWN, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
<TABLE>
<CAPTION>
Three Months ended
March 31,
------------------------------
1997 1996
------- --------
(Unaudited)
<S> <C> <C>
Cash flows from operating activities:
Net income $ 6,015 $ 870
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion and amortization 8,696 3,717
Option plan compensation - 17
Exploration costs 1,121 411
Impairments of leasehold costs 180 65
Deferred tax asset recognition 2,865 598
Changes in operating assets and
liabilities:
Decrease (increase)in accounts
receivable 11,658 (4,261)
Increase in inventories (68) (204)
Decrease (increase) in other
current assets 362 (94)
Decrease (increase) in accounts
payable and accrued expenses (4,411) 5,102
Decrease (increase)in other
non-current assets 13 (352)
Increase in other non-current liabilities 816 -
------ ------
Net cash provided by operating activities $27,247 $ 5,869
------ ------
</TABLE>
(continued)
See accompanying notes to consolidated financial statements.
7
<PAGE> 8
TOM BROWN, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
<TABLE>
<CAPTION>
Three Months ended
March 31,
-------------------------------
1997 1996
--------- ---------
(Unaudited)
<S> <C> <C>
Cash flows from investing activities:
Capital and exploration expenditures $(11,879) $ (4,978)
Changes in accounts payable and
accrued expenses for oil
and gas expenditures (1,260) -
Proceeds from sale of assets 1,603 -
Transaction costs for KNPC acquisition - (264)
------ ------
Net cash used in investing activities (11,536) (5,242)
------ ------
Cash flows from financing activities:
Repayments of long-term debt (14,000) -
Proceeds from exercise of stock options 132 61
------ ------
Net cash provided by financing activities (13,868) 61
------ ------
Net increase (decrease) in cash and cash
equivalents 1,843 688
------ ------
Cash and cash equivalents at beginning
of period 20,504 4,982
------ ------
Cash and cash equivalents at end of period $ 22,347 $ 5,670
====== ======
Cash paid during the period for:
Interest $ 800 $ -
Income taxes 116 -
</TABLE>
See accompanying notes to consolidated financial statements.
8
<PAGE> 9
TOM BROWN, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(Unaudited)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
During interim periods, Tom Brown, Inc. follows the accounting policies
set forth in its Annual Report to Stockholders and its Report on Form 10-K filed
with the Securities and Exchange Commission. Users of financial information
produced for interim periods are encouraged to refer to the footnotes contained
in the Annual Report to Stockholders when reviewing interim financial results.
In the opinion of management, the accompanying interim financial
statements contain all material adjustments, consisting only of normal recurring
adjustments necessary for a fair presentation.
(2) ACQUISITION
Acquisition of Presidio Oil Company
On December 23, 1996, the Company completed the acquisition of Presidio
Oil Company and its subsidiaries (collectively, "Presidio"), following the
issuance by the U.S. Bankruptcy Court, District of Delaware, on December 10,
1996, of an Order confirming Presidio's reorganization under Chapter 11 of the
U.S. Bankruptcy Code. The purchase price was approximately $206.6 million
consisting of approximately $105 million in cash and 2.71 million shares of the
Company's Common Stock valued at $17.125 per share, including the assumption of
certain liabilities. Such amount does not include 2.64 million shares of the
Company's Common Stock which were not issued due to the Company's ownership of
$56.15 million principal amount of Presidio's Senior Gas Indexed Notes. The
Presidio Acquisition has been accounted for using the purchase method. The cash
portion of the Presidio Acquisition was funded by borrowings under the
Company's loan agreement with its bank lender. The assets acquired consist
primarily of proved oil and gas properties and undeveloped acreage located in
Wyoming, North Dakota, Oklahoma and Louisiana. The Wyoming properties are
concentrated in the Green River and Powder River Basins of Wyoming.
Pro Forma Information
The following table presents the unaudited pro forma revenues, net
income and net income per share of the Company for the three months ended March
31, 1997 and 1996 assuming that the Presidio Acquisition occurred on January 1,
1995.
9
<PAGE> 10
TOM BROWN, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
Three Months ended March 31,
------------------------------
1997 1996
--------- ---------
(in thousands, except for
per share amounts)
Revenues $ 36,350 $ 21,863
====== ======
Net income 6,453 1,657
====== ======
Net income available to common
shareholders 6,015 1,297
====== ======
Net income per common share .24 .05
====== ======
(3) BANK DEBT
In September 1995, the Company entered into a bank credit agreement. The
credit agreement provided for a $65 million revolving credit facility (the
"Credit Facility") maturing in September 1998. Borrowings under the Credit
Facility are unsecured and bear interest, at the election of the Company, at a
rate equal to (i) the greater of the agent bank's prime rate or the federal
funds effective rate plus 1/2 of 1% or (ii) the agent bank's Eurodollar rate
plus a margin ranging from .75% to 1.00%. Interest on amounts outstanding under
the Credit Facility is due on the last day of each month in the case of loans
bearing interest at the prime rate or federal funds rate and, in the case of
loans bearing interest at the Eurodollar rate, interest payments are due on the
last day of each applicable interest period of one, two, three or six months, as
selected by the Company at the time of borrowing.
In connection with the Presidio Acquisition, on December 23, 1996, the
Company and its lenders entered into a Credit Agreement providing for a $125
million revolving credit facility, maturing December 1999. Pursuant to this
agreement, the Company repaid the existing indebtedness under the prior facility
with borrowings under the new Credit Agreement. The terms and conditions of the
new Credit Facility are substantially the same as the Credit Facility. At March
31, 1997 the outstanding balance was $105 million at an interest rate of
approximately 6.7%
Financial covenants of the Credit Facility require the Company to
maintain a minimum consolidated tangible net worth of not less than $226 million
as of March 31, 1997. The Company is also required to maintain a ratio of (i)
earnings before interest expense, state and federal taxes and depreciation,
depletion and amortization to (ii) consolidated fixed charges, as defined in the
credit agreement, of not less than 2.5:1. Additionally, the Company is required
to maintain a ratio of consolidated debt to consolidated total capitalization of
less than 0.45:1 and a current ratio of not less than 1.1:1. The Company was in
compliance with all financial covenants at March 31, 1997.
(4) INCOME TAXES
The Company has not paid Federal income taxes due to its net operating
loss carryforward, but is required to pay alternative minimum tax ("AMT").
This tax can
10
<PAGE> 11
TOM BROWN, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(continued)
be partially offset by an AMT net operating loss carryforward.
Temporary differences and carryforwards which gave rise to significant
portions of deferred tax assets (liabilities) are as follows:
March 31, December 31,
1997 1996
-------- -----------
(in thousands)
Net operating loss carryforwards..................... $ 16,135 $ 18,689
Gas and oil acquisition, exploration and development
costs deducted for tax purposes in excess of book.. (14,825) (14,520)
Investment tax credit carryforwards.................. 2,463 2,463
Option plan compensation............................. 1,559 1,559
Other................................................ 2,433 2,309
------ ------
Net deferred tax asset............................. 7,765 10,500
Valuation allowance.................................. (7,765) (7,635)
------ ------
Recognized net deferred tax asset.................. $ - $ 2,865
====== ======
A valuation allowance of approximately $7.8 million and $7.6 million at
March 31, 1997 and December 31, 1996, respectively, has been provided against
the Company's net deferred tax assets based on management's estimate of the
recoverability of future tax benefits. The valuation allowance relates primarily
to the ability to use net operating loss and investment tax credit
carryforwards. The Company evaluated all appropriate factors to determine the
proper valuation allowance for these carryforwards, including any limitations
concerning their use, the year the carryforwards expire and the levels of
taxable income necessary for utilization. In this regard, full valuation
allowances were provided for investment tax credit carryforwards. Based on its
recent operating results and its expected levels of future earnings, the Company
believes it will, more likely than not, generate sufficient taxable income to
realize the benefit attributable to the net operating loss carryforwards for
which valuation allowances were not provided.
At March 31, 1997, the Company had investment tax credit carryforwards
of approximately $2.5 million and net operating loss carryforwards of
approximately $47.1 million. The Company currently has no liability for deferred
Federal income taxes because of these net operating loss and investment tax
credit carryforwards. Realization of the benefits of these carryforwards is
dependent upon the Company's ability to generate taxable earnings in future
periods. In addition, the availability of these carryforwards is subject to
various limitations. The remainder of the carryforwards will expire between 1997
and 2004. Additionally, the Company has approximately $4.5 million of statutory
depletion carryforwards and $0.8 million of AMT credit carryforwards that may be
carried forward until utilized.
11
<PAGE> 12
TOM BROWN, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Results of Operations
The Company's historical results of operations have been materially
affected by the substantial increase in the Company's size as a result of the
Presidio Acquisition, making comparisons of individual line items between 1997
and 1996 difficult.
Revenues
During the three-month period ended March 31, 1997, revenues from natural
gas and oil production increased $20.1 million to $28.5 million compared to the
same period in 1996. Such increase in gas and oil revenues was the result of an
increase in (i) natural gas sales volumes of 99% which increased revenues by
approximately $11.0 million, (ii) average natural gas sales prices received by
the Company from $1.59 per Mcf to $2.86 per Mcf which increased revenues by
approximately $4.9 million, (iii) oil sales volumes of 136% which increased
revenues by approximately $3.7 million and (iv) average crude oil sales prices
from $16.89 to $20.29 per barrel which increased revenues $.5 million. The
increase in gas and oil production levels was primarily due to the Presidio
Acquisition and to a lesser extent, successful drilling results primarily in the
Val Verde Basin of west Texas.
Marketing, gathering and processing revenues increased $2.7 million for
the three-month period ended March 31, 1997 as a result of increased activity in
the Company's natural gas marketing operations through Wildhorse, a joint
venture with KN Energy, Inc., and due to gathering revenues from a November 1996
purchase of gathering facilities, also through Wildhorse.
Selected Operating Data
Three Months ended
March 31,
--------------------------
1997 1996
------- -------
Revenues (in thousands):
Natural gas sales............................ $22,074 $ 6,153
Crude oil sales.............................. 6,472 2,280
Marketing, gathering and processing.......... 7,318 4,654
Other........................................ 486 118
------ -----
Total revenues......................... $36,350 $13,205
====== ======
Net income (in thousands)................ $ 6,015 $ 870
====== =====
Natural gas production (MMcf)................... 7,709 3,874
Crude oil production (MBbls).................... 319 135
Average natural gas sales price ($/Mcf)......... $ 2.86 $ 1.59
Average crude oil sales price ($/Bbl)........... $ 20.29 $ 16.89
12
<PAGE> 13
TOM BROWN, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Costs and Expenses
Costs and expenses for the three months ended March 31, 1997 increased
approximately 137% to $26.9 million as compared to the same period in 1996.
Natural gas and oil production expense increased $2.8 million as a result of the
addition of the KNPC and Presidio properties. The Presidio properties
historically have had a higher operating cost than those properties operated
by the Company. Taxes on gas and oil production increased $1.4 million due to
increased sales volumes in the Val Verde Basin and from the KNPC and Presidio
properties. Exploration costs increased $.7 million due to exploratory dry hole
costs in the first quarter of 1997. General and administrative expenses
increased $1.0 million due to additional costs incurred with the addition of
KNPC and Presidio. Depreciation, depletion and amortization increased $5.0
million due to the addition of the KNPC and Presidio properties and additional
Val Verde Basin wells.
Deferred tax assets (related primarily to the Company's net operating loss
and investment tax credit carryforwards) were initially recorded in 1993, but
these tax assets had been reserved entirely by a valuation allowance up until
1995. Based on recent additions to the Company's gas and oil reserves, the
resulting increases in anticipated future income and the absence of significant
option plan compensation charges to future income, the Company expects to
realize all of the future benefit of its net operating loss carryforwards prior
to their expiration. Accordingly, that portion of the valuation allowance was
reversed in the first quarter of 1995. A valuation allowance of approximately
$7.8 million has been retained against the Company's deferred tax assets,
primarily because the Company's investment tax credit carryforwards are still
not expected to be realized in future periods. The deferred tax assets and
related valuation allowance will be monitored for potential adjustments as
future events so indicate, although management does not expect such adjustments
to be significant in the near term.
Capital Resources and Liquidity
Growth and Acquisitions
In 1996 the Company substantially increased in size primarily due to the
KNPC and Presidio acquisitions. The Company continues to pursue opportunities
which will add value by increasing its reserve base and presence in significant
natural gas areas, and further developing the Company's ability to control and
market the production of natural gas. As the Company continues to evaluate
potential acquisitions and property development opportunities, it will benefit
from its financing flexibility and the leverage potential of the Company's
overall capital structure.
Capital Expenditures
The Company's capital expenditures for the three-month period ended March
31, 1997 were approximately $10.6 million as compared to $4.6 million in the
same period in 1996.
The Company has historically funded capital expenditures and working
capital requirements with internally generated cash and borrowings. During the
three months
13
<PAGE> 14
TOM BROWN, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
ended March 31, 1997, net cash provided by operating activities was $27.2
million as compared to $5.9 million for the same period of 1996.
Recent Accounting Pronouncements
In October 1996 the American Institute of Certified Public Accountants
("AICPA") issued Statement of Position No. 96-1 ("SOP 96-1") which provides
authoritative guidance intended to improve and narrow the manner in which
existing accounting literature is applied to the recognition, measurement,
display, and disclosure of environmental remediation liabilities arising
pursuant to existing federal, state and local laws and regulations. SOP 96-1
addresses the nature of items that are to be included in the measurement of a
company's liability related to any environmental remediation efforts it is
currently undertaking or required to complete in the future. In this regard, SOP
96-1 requires that all incremental direct third party costs, as well as any
internal compensation costs (including benefits) for employees expected to
devote a significant amount of time directly to remediation efforts, should be
included in the determination of the estimated liability. The term "remediation
effort" is defined in SOP 96-1 to include such things as remedial risk
assessment, feasibility studies and operations and maintenance associated with
corrective actions. SOP 96-1 must be adopted in the first quarter of 1997. The
adoption of SOP 96-1 had no impact on the Company's financial position, results
of operations or liquidity for the first quarter of 1997, and is not expected to
have a material impact on the Company's financial position, results of
operations or liquidity in the future.
In March 1997, the Financial Accounting Standards Board ("FASB") issued
FASB Statement 128, Earnings per Share, which is effective for financial
statements for both interim and annual periods ending after December 15, 1997.
This Statement requires all entities who have issued common stock or potential
common stock (eg. options, convertible securities, etc.) to calculate basic EPS
which replaces primary EPS, and diluted EPS which replaces fully diluted EPS.
Basic EPS for the three month period ended March 31, 1997 was $.25. Diluted EPS
for the three month period ended March 31, 1997 was $.24.
14
<PAGE> 15
TOM BROWN, INC.
P. O. Box 2608
500 Empire Plaza Bldg.
Midland, Texas 79701
--------------------------
QUARTERLY REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
FORM 10-Q
--------------------------
PART II OF TWO PARTS
OTHER INFORMATION
15
<PAGE> 16
TOM BROWN, INC. AND SUBSIDIARIES
OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K and Form 8-K/A
(a) Exhibits Description
Exhibit No. 11 Computation of Per Share Earnings
Exhibit No. 27 Financial Data Schedule
(b) Reports on Form 8-K
In its Form 8-K Report dated January 7, 1997 the Company reported
under Item 2., Acquisition or Disposition of Assets that it
completed the acquisition of Presidio Oil Company and its
subsidiaries (collectively, "Presidio") on December 23, 1996,
following the issuance by the U.S. Bankruptcy Court, District of
Delaware, on December 10, 1996, of an Order confirming Presidio's
reorganization under Chapter 11 of the U.S. Bankruptcy Code. The
purchase price was approximately $206.6 million consisting of
approximately $105 million in cash and 2.71 million shares of the
Company's Common Stock valued at $17.125 per share, including the
assumption of certain liabilities. Such amount does not include
2.64 million shares of the Company's Common Stock which were not
issued due to the Company's ownership of $56.15 million principal
amount of Presidio's Senior Gas Indexed Notes.
16
<PAGE> 17
TOM BROWN, INC. AND SUBSIDIARIES
OTHER INFORMATION
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.
TOM BROWN, INC.
---------------------------
(Registrant)
May 14, 1997 /s/ Kim Harris
- ------------ ---------------------------
Date Kim Harris
Controller
(Mr. Harris is the Chief Financial Officer
and is duly authorized to sign on behalf
of the Registrant)
17
<PAGE> 18
EXHIBIT INDEX
Exhibit No. 11 Computation of Per Share Earnings
Exhibit No. 27 Financial Data Schedule
<PAGE> 1
EXHIBIT 11
COMPUTATION OF PER SHARE EARNINGS
<TABLE>
<CAPTION>
Three Months ended
March 31,
----------------------------
(in thousands,
except per share amounts)
1997 1996
------ ------
<S> <C> <C>
Primary
Weighted average common shares outstanding 23,943 21,113
Net effect of dilutive stock options,
treasury stock method 1,161 597
------ ------
Total common shares 25,104 21,710
====== ======
Net income to common shareholders $ 6,015 $ 870
====== ======
Primary earnings per common share $ .24 $ .04
====== ======
Fully Diluted
Weighted average common shares outstanding 23,943 21,113
Net effect of dilutive stock options,
treasury stock method 1,161 597
Effect of convertible preferred stock 1,666 1,666
------ ------
Total common shares 26,770 23,376
====== ======
Net income to common shareholders $ 6,453 $ 1,230
====== ======
Fully diluted earnings per common share $ .24 $ .05
====== ======
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 22,347
<SECURITIES> 0
<RECEIVABLES> 21,422
<ALLOWANCES> 0
<INVENTORY> 1,442
<CURRENT-ASSETS> 45,738
<PP&E> 481,070
<DEPRECIATION> 133,530
<TOTAL-ASSETS> 393,666
<CURRENT-LIABILITIES> 29,377
<BONDS> 0
0
100
<COMMON> 2,394
<OTHER-SE> 250,336
<TOTAL-LIABILITY-AND-EQUITY> 393,666
<SALES> 28,546
<TOTAL-REVENUES> 36,350
<CGS> 12,513
<TOTAL-COSTS> 26,869
<OTHER-EXPENSES> 2,397
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,962
<INCOME-PRETAX> 9,481
<INCOME-TAX> (3,028)
<INCOME-CONTINUING> 6,015
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6,015
<EPS-PRIMARY> .24
<EPS-DILUTED> 0
</TABLE>
