UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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 August 29, 1998
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: 000-04892
CAL-MAINE FOODS, INC.
(Exact name of registrant as specified in its charter)
Delaware 64-0500378
(State or other Jurisdiction of (I.R.S. Employer Identification No.)
Incorporation or Organization)
3320 Woodrow Wilson Avenue, Jackson, Mississippi 39209
(Address of principal executive offices) (Zip Code)
(601) 948-6813
(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 (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_____
Number of shares outstanding of each of the issuer's classes of common
stock (exclusive of treasury shares), as of October 1, 1998.
Common Stock, $0.01 par value 11,952,857 shares
Class A Common Stock, $0.01 par value 1,200,000 shares
CAL-MAINE FOODS, INC.
INDEX
Page
Part I. Financial Information Number
Item 1. Condensed Consolidated Financial Statements
Condensed Consolidated Balance Sheets -
August 29, 1998 (unaudited) and May 30, 1998 3
Condensed Consolidated Statements of Operations -
Three Months Ended August 29, 1998 (unaudited) and
August 30, 1997 (unaudited) 4
Condensed Consolidated Statements of Cash Flow -
Three Months Ended August 29, 1998 (unaudited) and
August 30, 1997 (unaudited) 5
Notes to Condensed Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 7
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K 11
Signatures 12
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
<TABLE>
CAL-MAINE FOODS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
<S> <C> <C>
August 29, 1998 May 30, 1998
---------------------------------------
(unaudited) (note)
ASSETS
Current assets:
Cash and cash equivalents $ 38,669 $ 41,126
Accounts receivable, net 15,056 13,691
Recoverable federal and state
income taxes 1,233 218
Inventories - note 2 40,511 41,437
Prepaid expenses and other
current assets 690 791
---------------------------------------
Total current assets 96,159 97,263
Notes receivable and investments 5,384 5,373
Other assets 1,150 1,183
Property, plant and equipment 171,720 170,912
Less accumulated depreciation (73,626) (71,543)
----------------------------------------
98,094 99,369
----------------------------------------
TOTAL ASSETS $ 200,787 $ 203,188
==========================================
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable and accrued
expenses $ 23,881 $ 25,756
Current maturities of
long-term debt 4,662 4,540
Current deferred income taxes 10,376 10,376
------------------------------------------
Total current liabilities 38,919 40,672
Long-term debt, less current
maturities 72,608 70,958
Deferred expenses 1,655 1,716
Deferred income taxes 10,295 10,295
------------------------------------------
Total liabilities 123,477 123,641
Stockholders' equity:
Common stock $0.01 par value
per share:
Authorized shares - 30,000,000
Issued and outstanding shares -
17,565,200 at August 29, 1998
and at May 30, 1998 176 176
Class A common stock $0.01 par value,
authorized, issued
and outstanding 1,200,000 shares 12 12
Paid-in capital 18,784 18,784
Retained earnings 64,932 67,031
Common stock in treasury -
5,634,212 shares at August 29, 1998
and 5,608,212 shares at May 30, 1998 (6,594) (6,456)
---------------------------------------
Total stockholders' equity 77,310 79,547
---------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 200,787 $ 203,188
========================================
</TABLE>
See note next page. See notes to condensed consolidated financial
statements.
CAL-MAINE FOODS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
UNAUDITED
<TABLE>
<S> <C> <C>
13 Weeks Ended
August 29, 1998 August 30, 1997
-----------------------------------------
Net sales $ 68,785 $ 63,723
Cost of sales 62,704 58,253
--------------------------------
Gross profit 6,081 5,470
Selling, general and
administrative 8,935 7,461
--------------------------------
Operating income (loss) (2,854) (1,991)
--------------------------------
Other income (expense):
Interest expense, net (617) (1,013)
Other 191 194
---------------------------------
(426) (819)
---------------------------------
Income (loss) before income
taxes (3,280) (2,810)
Income tax expense (benefit) (1,193) (1,073)
---------------------------------
NET INCOME (LOSS) $ (2,087) $ (1,737)
=================================
Net income (loss) per common
share:
Basic $ (.16) $ (.13)
=================================
Dilutive $ (.16) $ (.13)
=================================
Weighted average shares
outstanding:
Basic $ 13,147 $ 13,188
=================================
Dilutive $ 13,315 $ 13,452
=================================
</TABLE>
Note: The balance sheet at May 30, 1998 has been derived from the audited
financial statements at that date but does not include all of the
information and footnotes required by generally accepted accounting
principles for complete financial statements.
See notes to condensed consolidated financial statements.
CAL-MAINE FOODS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
UNAUDITED
<TABLE>
<S> <C> <C>
13 Weeks Ended
August 29, 1998 August 30, 1997
Cash flows provided by (used in)
operating activities $ (2,719) $ 78
Cash flows from investing
activities:
Purchases of property, plant
and equipment (1,412) (1,792)
Construction of production
facilities (854) (3,344)
Payments received on notes
receivable and from investments 393 33
Net proceeds from sale of
property, plant and equipment 512 37
---------------------------------------
Net cash used in investing
activities (1,361) (5,066)
Cash flows from financing
activities:
Long-term borrowings 2,850 --
Principal payments on
long-term debt and
capital leases (1,077) (1,898)
Purchases of common stock
for treasury (139) (77)
Proceeds from the exercise of
stock options -- 78
Payment of dividends (11) --
-------------------------------------
Net cash provided by (used in)
financing activities 1,623 (1,897)
--------------------------------------
Decrease in cash and cash
equivalents (2,457) (6,885)
Cash and cash equivalents at
beginning of period 41,126 23,737
----------------------------------------
Cash and cash equivalents at
end of period $ 38,669 $ 16,852
========================================
</TABLE>
See notes to condensed consolidated financial statements.
CAL-MAINE FOODS, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(in thousands, except share amounts)
August 29, 1998
(unaudited)
1. Presentation of Interim Information
The accompanying unaudited condensed consolidated financial statements are
presented in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and
Article 10 of regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting
principles for complete financial statements.
In the opinion of the management of Cal-Maine Foods, Inc. (the "Company"),
the accompanying unaudited condensed consolidated financial statements
include all normal adjustments considered necessary to present fairly the
financial position as of August 29, 1998, and the results of operations for
the thirteen weeks ended August 29, 1998 and August 30, 1997, and the cash
flows for the thirteen weeks ended August 29, 1998 and August 30, 1997.
Interim results are not necessarily indicative of results for a full
, refer to the consolidated financial statements and footnotes thereto
included in the Company's Annual Report.
2. Inventories
Inventories consisted of the following:
<TABLE>
<S> <C> <C>
August 29, 1998 May 30, 1998
----------------------------------
Flocks $ 26,375 $ 26,866
Eggs and egg products 3,181 2,683
Feed and supplies 7,679 8,736
Livestock 3,276 3,152
-----------------------------------
$ 40,511 $ 41,437
===================================
</TABLE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
OVERVIEW
The Company is primarily engaged in the production, cleaning, grading,
packing and sale of fresh shell eggs. The Company's fiscal year end is
the Saturday closest to May 31.
The Company's operations are fully integrated. At its facilities it
hatches chicks, grows pullets, manufactures feed, and produces, processes,
and distributes shell eggs. The Company currently is the largest producer
and distributor of fresh shell eggs in the United States. The shell egg
segment sales account for 97% of the Company's net sales. The Company
primarily markets its shell eggs in the southwestern, southeastern, mid-
western and mid-Atlantic regions of the United States. Shell eggs are sold
directly by the Company primarily to national and regional supermarket
chains. Egg products operations were discontinued in May, 1998.
The Company currently uses contract producers for approximately 31% of
its total egg production. Contract producers operate under agreements
with the Company for the use of their facilities in the production of
shell eggs by layers owned by the Company, which owns the eggs produced.
Also, shell eggs are purchased, from outside producers as needed, for
resale by the Company.
The Company's operating income or loss is significantly affected by
wholesale shell egg market prices, which can fluctuate widely and are
outside of the Company's control. Retail sales of shell eggs are greatest
during the fall and winter months and lowest during the summer months.
Prices for shell eggs fluctuate in response to seasonal factors and a
natural increase in egg production during the spring and early summer.
The Company's cost of production is materially affected by feed costs,
which average about 60% of Cal-Maine's' total farm egg production cost.
Changes in feed costs result in changes in the Company's cost of goods sold.
The cost of feed ingredients is affected by a number of supply and demand
factors such as crop production and weather, and other factors, such as the
level of grain exports, over which the Company has little or no control.
Forward Looking Statements. Management's discussion contains forward-looking
statements which involve risks and uncertainties and the Company's actual
experience may differ materially from that discussed as follows. Factors
that may cause such a difference include, but are not limited to, those
discussed in "Factors Affecting Future Performance", below, as well as
future events that have the effect of reducing the Company's available
cash balances, such as unanticipated operating losses or capital expenditures
related to posisble future acquisitions. Readers are cautioned not to place
undue reliance on forward-looking statements, which reflect management's
analysis only as the date hereof. The Company assumes no obligation to
update forward-looking statements. See also the Company's reports to be
filed from time to time with the Securities and Exchange Commission
pursuant to the Securities Exchange Act of 1934.
Factors Affecting Future Performance. The Company's future operating
results may be affected by various trends and factors which are beyond
the Company's control. These include adverse changes in shell egg prices
and in the grain market, as well as the number of laying hens in the nation.
Accordingly, past trends should not be used to anticipate future results
and trends. Further, the Company's prior performance should not be presumed
to be an accurate indication of future performance.
RESULTS OF OPERATIONS
The following table sets forth, for the periods indicated, certain items
from the Company's Condensed Consolidated Statements of Operations expressed
as a percentage of net sales.
<TABLE>
<S> <C> <C>
Percentage of Net Sales
-----------------------
13 Weeks Ended
August 29, 1998 August 30, 1997
---------------------------------------
Net sales 100.0% 100.0%
Cost of sales 91.2 91.4
---------------------------------------
Gross profit 8.8 8.6
Selling, general & administrative 12.9 11.7
---------------------------------------
Operating income (loss) (4.1) (3.1)
Other expense (.6) (1.3)
---------------------------------------
Income (loss) before taxes (4.7) (4.4)
Income tax expense (benefit) (1.7) (1.7)
----------------------------------------
Net income (loss) (3.0)% (2.7)%
=======================================
</TABLE>
NET SALES
Net sales for the first quarter of fiscal 1999 were $68.8 million, an
increase of $5.1 million, or 7.9% as compared to the first quarter of
fiscal 1998. Shell egg sales increased by $8.1 million. However, the
Company's egg products division, which accounted for $3.0 million of net
sales in the first quarter of fiscal 1998, closed in May 1998, and therefore
did not contribute to net sales for the current first quarter. The $8.1
million increase is the net result of an increase in dozens sold, an
increase in feed sales to outside egg producers and a decrease in the
average selling price of shell eggs. Dozens sold for the current quarter
were 106.3 million dozen, in increase of 8.2 million dozens, or 8.4%, as
compared to the first quarter of last year. Dozens produced from an
acquisition made in the second quarter of fiscal 1998 accounted for 3.3
million dozens of the increase in dozens sold. The balance of the increase
in dozens sold was from purchases from outside producers. Outside feed
sales for the current quarter increased $5.0 million over last year's first
quarter. The increase in feed sales is primarily to customers that were part
of the acquisition metnioned above. The Company's net average selling price
per dozen for the fiscal 1999 first quarter was $.574, compared to $.607
for the first quarter of last year, a decrease of 5.5%. The Company's net
average selling price is the average selling price for all sizes and grades
of shell eggs, including non-graded egg sales, breaking stock and undergrades.
Demand for shell eggs and egg market prices were seasonably weak during this
current quarter. Export sales of shell eggs continue to be weak. In
comparison, the Company's net average selling price per dozen decreased
11.0% for last year's first quarter, as compared to the first quarter of
fiscal 1997.
COST OF SALES
Total cost of sale sfo rhte first quarter ended Augsut 29, 1998 was $62.7
million, an increase of $4.5 million or 7.6%, as compared to the cost of
sales of $58.3 million for last year's first quarter. prior years. In the
second quarter of fiscal 1998, the Company began
lty brand eggs, primarily the Egg(Land's Best franchise in New York City.
For the current quarter, approximately $200,000 more than last year's quarter
was expensed for advertising and promotions for specialty brand eggs. The
balance of the expense increase is due to increases in overall general
administrative expenses and professional fees. As a percent of sales,
selling, general and administrative expenses, have increased from 11.7%
for last year's first quarter to 12.9% for the current first quarter.
OPERATING INCOME (LOSS)
weak demand and market prices, such as in the Company's first quarter, the
Company is able to purchase outside eggs at more favorable net prices. The
result of the decrease in egg selling prices, offset by improvements in egg
production and purchase costs, is an increase in gross profit from 8.6% of
net sales in the quarter ended Agusut 30, 1997 to 8.8% of net sales for the
current quarter ended August 29, 1998.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative expense for the first quarter ended
August 29, 1998 was $8.9 million, an increase of $1.5 million, or 19.8%,
as compared to the $7.5 million for the comparable period last year. The
increase is due to delivery expenses for the increased dozens sold volume,
increased health benefit costs and product advertising and promotions.
Although overall delivery operating costs per dozen have slightly increased,
the increased number of dozens sold, as discussed above, increased total
delivery expense for the current quarter by approximately $500,000, as
compared to last year. Employee health benefit costs have increased
approximately $400,000 for the current quarter due to an increase in number
of employees and increases in costs of claims. With acquisitions, the
number of employees has increased by 8%. The first quarter of last year
had an unusually low cost of claims, as compared to the current first
quarter which are above the average of prior years. In the second quarter
of fiscal 1998, the Company began opening new markets for specialty brand
eggs, primarily the Egg-Land's Best franchise in New York City. For the
current quarter, approximately $200,000 more than last year's quarter was
expensed for advertising and promotions for the specialty brand eggs. The
balance of the expense increase is due to increases in overall general
administrative expense and professional fees. As a percent of sales,
selling, general and administrative expenses, have increased from 11.7%
for last year's first quarter to 12.9% for the current first quarter.
OPERATING INCOME (LOSS)
As a result of the above, an operating loss of $2.9 million was incrured
for the first quarter ended August 29, 1998, as compared to an operating
loss of $2.0 million for last year's first quarter. As a percent of sales,
the current fiscal 1999 quarter had a 4.1% operating loss, compared to
3.1% operating loss for last year.
OTHER EXPENSE
Other expenses for the first quarter ended Agusut 29, 1998 were
approxiamtely $400,000, comopared to approximately $800,000 for the last
year's first quarter. The current year reductionn of $400,000 is due to
an increase in itnerst income of $300,000 and miscellaneous income of
$100,000. As a percent of net sales, other expense decreased from 1.3%
for last year's first quarter to .6% for the current quarter.
INCOME TAXES
As a result of the above, the Company had a pre-tax loss of $3.3 million
for the quarter ended Augsut 29, 1998, compared to pre-tax loss of $2.8
million for the quarter ended Augsut 30, 1997. For the fiscal 1999 first
quarter, an income tax benefit of $1.2 million was recorded with an
effective tax rate of 36.4%, as coompared to an income tax benefit of
$1.1 million with an effective tax reate of 38.2%.
NET INCOME
As a result of the above, the net loss for the first quarter ended August
29, 1998 was $2.1 million, or a loss of $.16 per basic and diluted share,
coompared to net loss of $1.7 million, or a loss of $.13 per basic and
diluted share for the quarter ended August 30, 1997.
CAPITAL RESOURCES AND LIQUIDITY
The Company's working capital at August 29, 1998 was $57.2 million compared
to $56.6 million at May 30, 1998. The Company's need for working capital
generally is highest in the first and last fiscal quarters ending in August
and May, respectively, when egg prices are normally at seasonal lows.
Seasonal borrowing needs frequently are higher during these periods than
during other fiscal periods. The Company had an unused $35 million line of
credit with three banks at August 29, 1998. The Company's long-term debt
at that date, including current maturities and capitalized lease obligations,
totaled $77.3 million.
Substantially all trade receivables and inventories collateralize the
Company's line of credit, and property, plant and equipment collateralize
the Company's long-term debt. The Company is required by certain provisions
of these loan agreements to (1) maintain minimum levels of working capital
and net worth; (2) limit dividends, capital expenditures, lease obligations
and additional long-term borrowings; and (3) maintain various current and
cash-flow coverage ratios, among other restrictions. The Company was in
compliance with these provisions at August 29, 1998.
For the thirteen weeks ended August 29, 1998, $2.7 million in net cash was
used in operating activities. This compares to net cash of $78,000 provided
by operating activities for the comparable period last year. In the current
fiscal first quarter, $1.4 million was used for purchases of property, plant
and equipment, and $900,000 used for construction projects in Chase, Kansas
and Waelder, Texas. Net cash of $900,000 was received from sales of
property, plant and equipment, and from notes receivable. Additional
long term borrowings of $2.8 million were received and repayments of $1.1
million were made. The net result of these current activities was a
decrease in cash of $2.5 million since May 30, 1998.
In the first quarter ended August 30, 1997, $1.8 million was used for
purchases of property, plant and equipment and $3.3 million was used for
construction of the Chase, Kansas facility. Repayment of long-term debt in
the amount of $1.9 million was made. The net result for cash activities for
the first quarter of fiscal 1998 was a decrease in cash of $6.9 million since
May 31, 1997.
At August 29, 1998, the Company had expended, since the start of the project,
approximately $18.2 million in the construction of new shell egg production,
processing and feed mill facilities in Chase, Kansas. The Company is
financing approximately $13.5 million of the estimated $21.5 million total
project cost through fixed rate industrial revenue bonds maturing in 2011.
Borrowing under the industrial revenue bond agreement totaled $10.0 million
at August 29, 1998. Also, as of this date, the Company had expended, since
the start of the project, approximately $1.6 million for construction of
new shell egg production and processing faciliteis in Waelder, Texas. The
estimated cost of construction is approximately $15.2 million with financing
plans of approximately $10.4 million in borrowings from an insurance company.
The Company has $3.2 million of deferred tax liability due to a subsidiary's
change from a cash basis to an accrual basis taxpayer on May 29, 1988. The
Taxpayer Relief Act of 1997 provides that the taxes on the cash basis
temporary differences as of that date are generally payable over the next
20 years beginning in fiscal 1999 or in the first fiscal year in
which there is a change in ownership control. Payment of the $3.2 million
deferred tax liability would reduce the Company's cash, but would not impact
the Company's statement of operations or reduce stockholders' equity, as
these taxes have been accrued and are reflected on the Company's balance
sheet.
YEAR 2000 ISSUE
The Company currently has a program underway to ensure that all significant
computer systems are substantially Year 2000 compliant by fiscal year ending
May 29, 1999. The program is divided into three major components: (1)
identification of all information technology systems ("IT Systems") and non-
information technology systems ("Non-IT Systems") that are not Year 2000
compliant; (2) repair or replacement of the identified non-compliant systems;
and (3) testing of the repaired or replaced systems. The Company has no
in-house developed or proprietary IT Systems. The Company uses
commercially developed software, the majority of which is periodically
upgraded through existing maintenance contracts. Parts (1) and (2) of the
Year 2000 program are currently underway. Part (1), identification, should
be completed by the end of the current calendar year. Review of accounting
and financial reporting systems is substantially finished and the Company
is continuing to review Non-IT Systems that have embedded microprocessors in
various types of equipment. Part (2), repairing and replacing, currently
continues, primarily under maintenance contracts with the Company's software
vendors. While most of the major systems are 2000 compliant, the software
vendors have targeted December 1998 as a completion date. Part (3), testing
will start in the Company's third fiscal quarter and finish in the fiscal
fourth quarter ending May 29, 1999.
The Company has been contacting key suppliers and business partners about
the Year 2000 issue. While no assurances can be given that key suppliers
and business partners will remedy their own Year 2000 issues, the Company
to date, has not identified any material impact on its ability to continue
normal business operations with suppliers or other third parties who fail
to address the issue.
Actual costs assocated with implemention of the Company's Year 2000 program
are expected to be insignificant to the Company's operations and financial
condition. Costs of $50,000 to $100,000, primarily for hardware, are
expected to be incurred. Significantly all fo these costs are expected
to be capitalized since the hardware would have been replaced evenn if there
were no Year 2000 issue.
The Company will continue to monitor and evaluate the impact of the Year
2000 issue on its operations. Until the Copany is i nto the final testing
part of its program, the risks from potential Year 2000 failures cannot
be fully assessed. Due to this situation, the Company cannot now begin
final contingency plans. These plans will be developed as potential
Year 2000 failures are identified in the final testing stages.
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND RPEORTS ON FORM 8-K
<TABLE>
a. Exhibits
<S> <C> <C>
The following Part I exhibit is filed herewith:
Exhibit
Number Exhibit
------- -------
27 Financial data schedule
b. Reports on Form 8-K
No current Report on Form 8-K was filed by the Company
covering an event during the first quarter of fiscal 1999.
</TABLE>
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.
<TABLE>
<S> <C>
CAL-MAINE FOODS, INC.
(Registrant)
Date: October 7 , 1998 /s/ Bobby J. Raines
---------------------------
Bobby J. Raines
Vice President/Treasurer
(Principal Financial Officer)
Date: October 7 , 1998 /s/Charles F. Collins
_________________________
Charles F. Collins
Vice President/Controller
(Principal Accounting Officer)
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAY-29-1999
<PERIOD-END> AUG-29-1998
<CASH> 38,669
<SECURITIES> 0
<RECEIVABLES> 15,056
<ALLOWANCES> 0
<INVENTORY> 40,511
<CURRENT-ASSETS> 96,159
<PP&E> 171,720
<DEPRECIATION> 73,626
<TOTAL-ASSETS> 200,787
<CURRENT-LIABILITIES> 38,919
<BONDS> 0
0
0
<COMMON> 188
<OTHER-SE> 77,122
<TOTAL-LIABILITY-AND-EQUITY> 200,787
<SALES> 68,785
<TOTAL-REVENUES> 68,785
<CGS> 62,704
<TOTAL-COSTS> 62,704
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 617
<INCOME-PRETAX> (3,280)
<INCOME-TAX> (1,193)
<INCOME-CONTINUING> (2,087)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,087)
<EPS-PRIMARY> (.16)
<EPS-DILUTED> (.16)
</TABLE>
