FORM 10-Q.--QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
UNITED STATES
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 period ended September 11, 1999
-----------------------------------------------------------
or
[ ] Transition Report Pursuant to Section 13 of 15(d) of the Securities Exchange
Act of 1934
For the transition period to
---------------------- ------------------------------
Commission File Number: 2-28286
---------------------------------------------------------
The Bureau of National Affairs, Inc.
- --------------------------------------------------------------------------------
Exact name of registrant as specified in its charter
Delaware 53-0040540
- ------------------------------- ------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
1231 25th St., N.W. Washington, D.C. 20037
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(202)452-4200
- ---------------------------------------------------
(Registrant's telephone number, including Area Code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months and (2) has been subject to the filing requirements for
the past 90 days. Yes ___X___ No ______
The number of shares outstanding of each of the issuer's classes of common
stock, as of September 11, 1999 was 3,485,138 Class A common shares, 4,364,233
Class B common shares, and 295,861 Class C Common shares.
<PAGE>2
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THE BUREAU OF NATIONAL AFFAIRS, INC
CONSOLIDATED STATEMENTS OF INCOME
FOR THE 36-WEEKS ENDED SEPTEMBER 11, 1999 and SEPTEMBER 12, 1998
(Unaudited)
(In Thousands of Dollars)
36 Weeks Ended
---------------------------------
September 11, September 12,
1999 1998
-------------- -------------
OPERATING REVENUES $ 186,775 $ 182,368
-------------- -------------
OPERATING EXPENSES:
Editorial, production and distribution 102,658 97,766
Selling 41,423 41,161
General and administrative 29,391 26,619
Profit sharing 1,184 1,479
-------------- -------------
174,656 167,025
-------------- -------------
OPERATING PROFIT 12,119 15,343
-------------- -------------
NON-OPERATING INCOME (EXPENSE):
Investment Income 6,460 6,593
Interest Expense (592) (638)
Other Income (Expense), Net 305 (30)
-------------- -------------
TOTAL NON-OPERATING INCOME 6,173 5,925
-------------- -------------
INCOME BEFORE INCOME TAXES 18,292 21,268
PROVISION FOR INCOME TAXES 5,865 6,954
-------------- -------------
NET INCOME 12,427 14,314
OTHER COMPREHENSIVE INCOME (EXPENSE) (3,525) (328)
-------------- ------------
COMPREHENSIVE INCOME $ 8,902 $ 13,986
============== ============
EARNINGS PER SHARE $ 1.52 $ 1.70
============== ============
WEIGHTED AVERAGE SHARES OUTSTANDING 8,182,657 8,425,280
============== ============
<PAGE>3
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THE BUREAU OF NATIONAL AFFAIRS, INC.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE 12-WEEKS ENDED SEPTEMBER 11, 1999 and SEPTEMBER 12, 1998
(Unaudited)
(In Thousands of Dollars)
12 Weeks Ended
-----------------------------------
September 11, September 12,
1999 1998
-------------- --------------
OPERATING REVENUES $ 62,872 $ 63,159
-------------- --------------
OPERATING EXPENSES:
Editorial, production and distribution 33,820 32,280
Selling 13,431 14,034
General and administrative 10,076 8,711
Profit sharing 438 782
-------------- --------------
57,765 55,807
-------------- --------------
OPERATING PROFIT 5,107 7,352
-------------- --------------
NON-OPERATING INCOME (EXPENSE):
Investment Income 2,366 2,464
Interest Expense (198) (213)
Other Income (Expense), Net (348) (13)
-------------- --------------
TOTAL NON-OPERATING INCOME 1,820 2,238
-------------- --------------
INCOME BEFORE INCOME TAXES 6,927 9,590
PROVISION FOR INCOME TAXES 2,261 3,231
-------------- --------------
NET INCOME 4,666 6,359
OTHER COMPREHENSIVE INCOME (EXPENSE) (1,373) (152)
-------------- --------------
COMPREHENSIVE INCOME $ 3,293 $ 6,207
============== ==============
EARNINGS PER SHARE $ .57 $ .76
============== ==============
WEIGHTED AVERAGE SHARES OUTSTANDING 8,151,979 8,382,209
============== ==============
<PAGE>4
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THE BUREAU OF NATIONAL AFFAIRS, INC.
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 11, 1999 AND DECEMBER 31, 1998
(Unaudited)
(In Thousands of Dollars)
September 11, December 31,
ASSETS 1999 1998
- -------------------------------------- -------------- -------------
CURRENT ASSETS:
Cash and cash equivalents $ 41,435 $ 15,259
Short-term investments, at fair value 7,382 25,715
Accounts receivable (net of
allowance for doubtful accounts
of $1,396 in 1999 and $1,714 in 1998) 33,122 43,934
Inventories, at lower of average
cost or market 4,592 4,999
Prepaid expenses 4,691 3,447
Deferred selling expenses 20,793 21,586
-------------- -------------
Total current assets 112,015 114,940
-------------- -------------
MARKETABLE SECURITIES 106,228 104,838
-------------- -------------
PROPERTY AND EQUIPMENT - at cost:
Land 4,250 4,250
Building and improve 49,650 49,367
Furniture, fixtures and equipment 59,149 61,285
-------------- -------------
113,049 114,902
Less-Accumulated depreciation 71,666 70,111
-------------- -------------
Net property and equipment 41,383 44,791
-------------- -------------
DEFERRED INCOME TAXES 28,819 25,019
-------------- -------------
GOODWILL 28,078 28,702
-------------- -------------
OTHER ASSETS 12,352 6,159
-------------- -------------
Total assets $ 328,875 $ 324,449
============== =============
<PAGE>5
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THE BUREAU OF NATIONAL AFFAIRS, INC.
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 11,1999 AND DECEMBER 31, 1998
(Unaudited)
(In Thousands of Dollars)
September 11, December 31,
LIABILITIES AND STOCKHOLDERS' EQUITY 1999 1998
- ------------------------------------ -------------- -------------
CURRENT LIABILITIES:
Accounts payable $ 21,687 $ 18,300
Employee compensation and benefits
payable 16,121 15,079
Income taxes payable 4,073 522
Deferred income taxes 1,330 1,577
Deferred subscription revenue 124,614 127,592
-------------- -------------
Total current liabilities 167,825 163,070
LONG TERM DEBT 14,000 14,000
POSTRETIREMENT BENEFITS, less current portion 73,191 69,230
OTHER LIABILITIES 4,534 4,128
-------------- -------------
Total liabilities 259,550 250,428
-------------- -------------
STOCKHOLDERS' EQUITY:
Capital stock, common, $1.00 par value-
Class A - Voting; Authorized 6,700,000
shares; issued 6,478,864 shares 6,479 6,479
Class B - Nonvoting; authorized
5,300,000 shares; issued 4,926,973 shares 4,927 4,927
Class C - Nonvoting; authorized
1,000,000 shares; issued 506,336 shares 506 506
Additional paid-in capital 42,309 39,782
Retained earnings 71,543 69,734
Treasury stock at cost - 3,766,941 shares
in 1999 and 3,684,109 in 1998 (55,925) (50,418)
Elements of other comprehensive income:
Net unrealized gain (loss) on marketable securities (449) 3,081
Foreign currency translation adjustment (65) (70)
-------------- -------------
Total stockholders' equity 69,325 74,021
-------------- -------------
Total liabilities and stockholders' equity $ 328,875 $ 324,449
============== =============
<PAGE>6
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THE BUREAU OF NATIONAL AFFAIRS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 36-WEEKS ENDED SEPTEMBER 11, 1999 and SEPTEMBER 12, 1998
(Unaudited)
(In Thousands of Dollars)
36 Weeks Ended
-----------------------------------
September 11, September 12,
1999 1998
---------------- ----------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 12,427 $ 14,314
Items with different cash requirements
than reflected in net income--
Depreciation and amortization 7,405 6,968
(Gain) on sales of securities (1,068) (1,313)
(Gain) on sales of assets (305) (25)
Others (431) 89
Changes in operating assets and liabilities--
Receivables 10,571 9,965
Deferred subscription revenue (2,996) (10,010)
Payables and accrued liabilities 447 1,401
Postretirement benefits 4,085 4,676
Deferred income taxes (2,150) (2,890)
Deferred selling expenses 741 2,510
Inventories 63 77
Other assets and liabilities--net (1,185) 162
--------------- ----------------
Net cash provided from operating activities 27,604 25,924
--------------- ----------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures--
Acquistion of a business
(net of $750 cash acquired) --- (18,289)
Capitalized software costs (4,492) ---
Purchase of publishing assets (2,235) ---
Purchase of equipment and furnishings (1,664) (2,433)
Building improvements (283) (173)
Proceeds from sale a business,
net of termination costs 533 ---
Proceeds from sales of publishing assets 402 25
Proceeds from sales of property 83 9
--------------- ----------------
Net cash (used for) capital expenditures (7,656) (20,861)
--------------- ----------------
Investment portfolio--
Proceeds from sales and maturities 42,292 51,893
Purchases (27,737) (53,352)
--------------- ----------------
Net cash provided from (used for)
investment portfolio 14,555 (1,459)
--------------- ----------------
Net cash provided from (used for)
investing activities 6,899 (22,320)
--------------- ----------------
<PAGE>7
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THE BUREAU OF NATIONAL AFFAIRS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 36-WEEKS ENDED SEPTEMBER 11, 1999 and SEPTEMBER 12, 1998
(Unaudited)
(In Thousands of Dollars)
36 Weeks Ended
----------------------------------
September 11, September 12,
1999 1998
-------------- ----------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings $ --- $ 15,000
Repayments of borrowings --- (1,000)
Sale of capital stock to employees 3,528 3,670
Purchase of treasury stock (6,508) (8,224)
Dividends paid (5,347) (5,093)
--------------- ----------------
Net cash (used for) provided from
financing activities (8,327) 4,353
--------------- ----------------
NET INCREASE IN CASH AND
CASH EQUIVALENTS 26,176 7,957
CASH AND CASH EQUIVALENTS, beginning of period 15,259 19,421
--------------- ----------------
CASH AND CASH EQUIVALENTS, end of period $ 41,435 $ 27,378
=============== ================
SUPPLEMENTAL DISCLOSURES OF CASH
FLOW INFORMATION:
Interest paid $ 530 $ 467
Income taxes paid 4,442 8,413
<PAGE>8
-8-
THE BUREAU OF NATIONAL AFFAIRS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 11, 1999
(UNAUDITED)
NOTE 1: General
The information in this report has not been audited. Results for the
thirty-six weeks are not necessarily representative of the year because of the
seasonal nature of activities. The financial information furnished herein
reflects all adjustments (consisting only of normal recurring adjustments) which
are, in the opinion of management, necessary to a fair statement of the results
reported for the periods shown and has been prepared in conformity with
generally accepted accounting principles applied on a consistent basis.
Notes contained in the 1998 Annual Report to security holders are hereby
incorporated by reference. Note disclosures which would substantially duplicate
those contained in the 1998 Annual Report to security holders have been omitted.
Certain prior year balances are restated to conform to current year presentation
when applicable.
NOTE 2: Inventories
Inventories consisted of the following (in thousands):
September 11, December 31,
1999 1998
------------------- -------------------
Materials and supplies $ 2,936 $ 3,251
Work in process 479 460
Finished goods 1,177 1,288
------------------- -------------------
Totals $ 4,592 $ 4,999
=================== ===================
NOTE 3: Stockholders' Equity
Treasury stock as of September 11, 1999 and December 31, 1998,
respectively, consisted of: Class A, 2,993,726 and 2,969,656 shares; Class B,
562,740 and 507,376 shares; and Class C, 210,475 and 207,077 shares.
NOTE 4: Accounting Pronouncement
During 1999, the Company adopted the American Institute of Certified Public
Accountants Statement of Position No. 98-1, "Accounting for the Costs of
Computer Software Developed or Obtained for Internal Use" ("SOP 98-1"). SOP 98-1
provides guidance on the capitalization of certain costs related to computer
software developed or obtained for internal use. Accordingly, the Company has
capitalized $4.5 million of such costs through the third quarter of 1999.
<PAGE>9
-9-
NOTE 5: Segment Information
12 Weeks Ended 36 Weeks Ended
9/11/99 9/12/98 9/11/99 9/12/98
-------------------- ---------------------
Revenues from External Customers:
Professional Publishing $ 58,262 $ 58,757 $ 171,707 $ 167,998
Printing 3,944 3,427 12,806 11,349
All Other 666 975 2,262 3,021
-------------------- ---------------------
Total $ 62,872 $ 63,159 $ 186,775 $ 182,368
==================== =====================
Intersegment Printing Revenues $ 3,348 $ 3,236 $ 10,467 $ 10,585
===================== =====================
Operating Profit:
Professional Publishing $ 4,531 $ 7,306 $ 10,651 $ 13,849
Printing 476 150 1,666 1,802
All Other 100 (104) (198) (308)
-------------------- ---------------------
Total $ 5,107 $ 7,352 $ 12,119 $ 15,343
===================== =====================
PART I
Item 2. Management's Discussion and Analysis of Results of
Operations and Financial Position
It is presumed that users of this interim report have read or have access
to the audited financial statements and management's discussion and analysis
contained in the 1998 Annual Report to security holders, hereby incorporated by
reference. This interim report is intended to provide an update of the
disclosures contained in the 1998 Annual Report to security holders and,
accordingly, disclosures which would substantially duplicate those contained
therein have been omitted.
FORWARD-LOOKING STATEMENTS
This management discussion contains and incorporates by reference certain
statements that are not statements of historical fact but are forward-looking
statements. The use of such words as "believes" and "expects" and similar
expressions are intended to identify forward-looking statements. Such statements
are subject to certain risks and uncertainties, which could cause actual results
to differ from those projected. Readers are cautioned not to place undue
reliance on these forward-looking statements which speak only as of the date
hereof.
<PAGE>10
-10-
RESULTS OF OPERATIONS
Thirty-six weeks 1999 compared to thirty-six weeks 1998
The disappointing financial results reported in the accompanying Statements
of Income are not indicative of BNA's expected full-year financial results.
Revenue and profit comparisons with prior-year results are negatively distorted
by two significant timing differences. A portion of BNA Software's revenues were
earned earlier last year because updated programs were shipped in the third
quarter of 1998; this year, they will be shipped, and the revenue will be
recognized in the fourth quarter. Also last year, BNA Books released more new
titles earlier than it will this year, which also resulted in more revenue
earlier in the year. Full-year financial results of both of these units are
expected to exceed those of last year. But through the third fiscal quarter,
they are both well behind where they were at the same time last year and,
consequently, so are the reported financial results of the publishing segment
and consolidated BNA.
Consolidated revenues of $186.8 million were up 2.4 percent over the prior
year, reflecting growth in both of BNA's major operating segments. Operating
expenses increased 4.6 percent, resulting in a 21 percent decline in operating
profit. Net income was $12.4 million, a 13.2 percent decrease compared to 1998.
Earnings per share were down 10.6 percent, to $1.52, reflecting fewer
outstanding shares.
Professional Publishing revenues are up just 2.2 percent over the same
period of 1998. Publishing revenues, excluding Software and Books, increased 4.2
percent. IOMA revenues grew over 25 percent due to new products and an
acquisition, and Tax Management subscription revenues rose nearly 8 percent as a
result of strong new subscription sales. Software revenues are down $2 million
and Books sales are down $.9 million due to the timing differences noted
earlier. Publishing operating expenses were up 4.5 percent, due in part to
higher royalties, and higher employment and consulting expenses. Operating
expenses continue to reflect substantial spending for Y2K remediation projects.
In addition, IOMA has incurred significantly higher marketing expenses related
to its new products. Operating profit for the Publishing segment decreased 23.1
percent.
Printing segment total revenues were up 6.1 percent over 1998, reflecting a
12.8 percent increase in revenues from external customers, but a 1.1 percent
decline in intersegment revenues. Sales to external customers have increased due
to increased business from existing customers and to the addition of new
customers. Intersegment revenues are expected to continue to decline as
Publishing segment subscribers continue to migrate from print to electronic
products. Operating expenses were up 7.3 percent, including higher selling
expenses related to increased external sales. Operating profit declined to $1.7
million compared to $1.8 million achieved last year.
<PAGE>11
-11-
In August, BNA Communications Inc., (BNAC) a training media business, was
sold to LearnCom, Inc. An investment far in excess of BNAC's limited strategic
and financial significance to the Company would have been required to grow BNAC
into an acceptably profitable business, and so a sale to another training media
business was deemed to be in the best interests of both the Company and BNAC.
BNAC's financial results comprise all of the "All Other" segment figures. The
sale resulted in a $281,000 pre-tax loss.
Non-operating income was $248,000 higher in 1999 due to a gain on a sale of
a publication, partially offset by the loss on the sale of BNA Communications.
Investment income net of interest expense was essentially unchanged compared to
last year. Comprehensive income, which combines net income with changes in
unrealized gains and losses on investment securities, was lower due to declines
in unrealized gains. The decline in unrealized gains on investment securities
was primarily due to an increase in interest rates, which adversely affected the
value of fixed-income securities. The Company manages interest rate risk in
its investment portfolio by diversifying the maturities of its fixed-income
investments.
The Parent launched two new notification products and two new Web-based
reference products during the quarter. The Parent expects to launch at least two
more web-based reference products and a new notification service before
year-end.
Full-year 1999 earnings per share is expected to finish higher than last
year. The revenue recognition timing differences will reverse in the fourth
quarter. McArdle and IOMA are expected to have much stronger fourth quarters
than last year. And, the lawsuit verdict expense incurred late last year won't
be repeated this year.
Twelve weeks ended September 11,1999 compared to twelve weeks ended September
12, 1998.
The revenue timing differences described earlier had a particularly significant
impact on third quarter only results. Consequently consolidated revenues fell
0.5 percent, operating profit was down 30.5 percent, net income declined 26.6
percent, and earnings per share were off 25 percent. Operating expenses were up
3.5 percent, reflecting the expense factors mentioned above.
Year 2000 Readiness
The Year 2000 (Y2K) readiness issue concerns the inability of older
computer programs to properly recognize a date using "00" for the applicable
year as the year 2000 rather than the year 1900. This could result in
miscalculations, system failures, or other business disruptions. The Company has
had projects underway to address Y2K readiness of its products and internal
systems, and with material third parties.
<PAGE>12
-12-
The Company has inventoried and assessed all major categories of
information technology systems (i.e. electronic products and publishing and
business systems) and non-information technology systems (i.e., equipment with
embedded microprocessors such as elevators, phones and copiers) in use by the
Company. With respect to its information technology systems, the Company has
been replacing its business and publishing systems for the last several years.
All of the mission-critical business systems have completed renovation and are
Y2K ready, and only one remaining non-critical business system is in the process
of being replaced. The major publishing systems have been renovated and are all
Y2K ready. In addition, the Company has many products that are delivered in an
electronic format, such as CD-ROM, diskette, e-mail, or via the Web,
representing over one-third of consolidated revenues. As a result of validation
testing, the Company is confident that its products, and the third-party
software used to create, use, and/or deliver those products, are Y2K ready or
will be with only minor adjustments. All products are expected to be Y2K ready
by November, 1999. With respect to the non-information technology systems, the
major systems have been tested and have been found to be compliant. Validation
of all areas as to the integrity of the Company's Y2K readiness is expected to
be completed by late 1999.
The Company has communicated with its key suppliers, including financial
institutions and other data interface sources, to assess the potential impact on
the Company's operations if those third parties fail to become Y2K compliant in
a timely manner. Based on these discussions, the Company believes that those
interface sources will be compliant, but risk assessments and contingency plans
related to significant third party relationships have been completed.
The cost in 1999 to replace business systems with Y2K ready systems, and
for testing to ensure that the publishing systems and products are also ready,
is expected to be $2.7 million. The cost to remediate other business systems is
expected to be $3.1 million. Of these amounts, an estimated $2.3 million for
software will be capitalized. Through the third quarter of 1999, Y2K
expenditures have amounted to $4.6 million, of which $1.8 million has been
capitalized.
The Company's readiness projects also include the development of
contingency plans to protect its business and operations from Y2K-related
interruptions. These plans are complete and, by way of examples, include back-up
procedures, identification of alternate suppliers, where practical, and
increases in inventory levels. Based upon the Company's current assessment of
its non-information technology systems, the Company does not believe it
necessary to develop an extensive contingency plan for those systems. There can
be no assurances, however, that all of the Company's contingency plans will be
sufficient to handle all problems or issues that may arise.
<PAGE>13
-13-
The Company believes that it has taken reasonable steps to identify and
address those matters that could cause serious interruptions in its business and
operations due to Y2K issues. However, a failure to fully identify all
computations which are year dependent in the Company's systems or in the systems
of its material suppliers, a failure of such suppliers to adequately address
their respective Y2K issues, or a failure of a contingency plan, could have a
material adverse effect on the Company's business, financial condition and
results of its operations. The Company believes the most reasonably likely worst
case scenario may be that the failure of a supplier, including an energy
supplier, to be Y2K ready could lead to the temporary disruption in the
production of some of the Company's products, resulting in lost revenues and
profits.
FINANCIAL POSITION
Cash provided from operating activities was $27.6 million in the first
thirty-six weeks of 1999, an increase of 6.5 percent compared to the $25.9
million recorded for the first thirty-six weeks of 1998. Customer receipts and
operating expenditures both increased 6.2 percent over 1998.
Cash provided from investing activities netted to $6.9 million, reflecting
a $14.5 million transfer of investments to cash equivalents, and $1.0 million
received from the sales of assets, less $8.6 million spent for capitalized
software costs, publishing assets, and other capital expenditures.
The Company received $3.5 million in cash from the sale of stock to
employees and repurchased $6.5 million of stock. Cash dividends paid out to
stockholders amounted to $5.3 million.
With over $155 million in cash and investment portfolios, the financial
position and liquidity of the Company remains very strong. Since subscription
monies are collected in advance, cash flows from operations, along with existing
financial reserves and proceeds from the sales of capital stock, have been
sufficient in past years to meet all operational needs, new product
introductions, debt repayments, most capital expenditures, and, in addition,
provide funds for dividend payments and the repurchase of stock tendered by
shareholders. Should more funding become necessary or desirable in the future,
the Company has substantial debt capacity based on its operating cash flows and
real estate equity.
<PAGE>14
-14-
PART II
Item 1 Legal Proceedings
There were no material legal proceedings during the first thirty-six
weeks of 1999.
Item 2 Change in Securities
There were no changes in securities.
Item 3 Defaults upon Senior Securities
There were no defaults upon senior securities.
Item 4 Submission of Matters to a Vote of Securities Holders
There were no matters submitted to a vote of securities holders.
Item 5 Other Information
No other information is presented herein.
Item 6 Exhibits and Reports on Form 8-K
No reports were filed on Form 8-K during the quarter ended September
11, 1999.
<PAGE>15
-15-
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.
The Bureau of National Affairs, Inc.
------------------------------------
Registrant
10/21/99 s/Paul N. Wojcik
- ----------------------- ------------------------------------
Date Paul N. Wojcik
President and Chief Executive Officer
10/21/99 s/George J. Korphage
- ----------------------- ------------------------------------
Date George J. Korphage
Vice President and Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This Schedule contains summary information extracted from The Bureau of National
Affairs, Inc. consolidated balance sheet and consolidated statement of income
for the period ended September 11, 1999 and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> SEP-11-1999
<CASH> 41,435
<SECURITIES> 7,382
<RECEIVABLES> 34,518
<ALLOWANCES> 1,396
<INVENTORY> 4,592
<CURRENT-ASSETS> 112,015
<PP&E> 113,049
<DEPRECIATION> 71,666
<TOTAL-ASSETS> 328,875
<CURRENT-LIABILITIES> 167,825
<BONDS> 14,000
0
0
<COMMON> 11,912
<OTHER-SE> 57,413
<TOTAL-LIABILITY-AND-EQUITY> 328,875
<SALES> 186,775
<TOTAL-REVENUES> 186,775
<CGS> 102,658
<TOTAL-COSTS> 102,658
<OTHER-EXPENSES> 71,998
<LOSS-PROVISION> 409
<INTEREST-EXPENSE> 67
<INCOME-PRETAX> 18,292
<INCOME-TAX> 5,865
<INCOME-CONTINUING> 12,427
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 12,427
<EPS-BASIC> 1.52
<EPS-DILUTED> 1.52
</TABLE>
