<PAGE>
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 30, 1996.
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OF 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________ to ________
Commission file number 1-11427
NEW ENGLAND BUSINESS SERVICE, INC.
----------------------------------
(Exact name of the registrant as specified in its charter)
Delaware 04-2942374
-------- ----------
(State or other jurisdiction of (I. R. S. Employer
incorporation or organization) Identification No.)
500 Main Street
Groton, Massachusetts, 01471
----------------------------
(Address of principal executive offices)
(Zip Code)
(508) 448-6111
--------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Sections 13 and 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 common shares of the Registrant outstanding on March 30, 1996
was 14,963,059.
<PAGE>
NEW ENGLAND BUSINESS SERVICE, INC.
CONSOLIDATED BALANCE SHEET
(In Thousands Except Share Data)
Unaudited
Mar. 30, June 30,
1996 1995
-------- --------
ASSETS
Current Assets
Cash and cash equivalents $ 17,528 $ 11,604
Short term investments 17,170 11,360
Accounts receivable 32,206 29,332
Inventories 9,250 9,880
Direct mail advertising 3,652 2,939
Prepaid expenses 1,137 2,716
Deferred income tax benefit 11,392 9,678
-------- --------
Total current assets 92,335 77,509
Property and Equipment
Land and buildings 29,605 35,796
Less: accumulated depreciation 16,769 18,833
-------- --------
Net 12,836 16,963
Equipment 70,232 70,890
Less: accumulated depreciation 53,719 51,818
-------- --------
Net 16,513 19,072
Property and equipment - net 29,349 36,035
Property Held for Sale 639 2,587
Other Assets - net 748 8,415
-------- --------
TOTAL ASSETS $123,071 $124,546
======== ========
<PAGE>
NEW ENGLAND BUSINESS SERVICE, INC.
CONSOLIDATED BALANCE SHEET (Continued)
(In Thousands Except Share Data)
Unaudited
Mar. 30, June 30,
1996 1995
-------- ---------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 8,231 $ 7,158
Federal and state income taxes 943 2,506
Accrued profit-sharing distribution 1,935 2,408
Accrued payroll expense 4,345 5,731
Accrued employee benefit expense 6,653 6,005
Accrued exit costs/restructuring charge 2,774 2,020
Other accrued expenses 5,256 6,341
------- --------
Total current liabilities 30,137 32,169
Deferred Income Taxes 227 854
STOCKHOLDERS' EQUITY
Preferred stock
Common stock 15,834 15,770
Additional paid in capital 13,454 12,450
Cumulative foreign currency translation
adjustment ( 1,600) ( 1,683)
Retained earnings 81,629 82,412
-------- --------
Total 109,317 108,949
Less: treasury stock ( 16,610) ( 17,426)
-------- --------
Stockholders' Equity 92,707 91,523
-------- --------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $123,071 $124,546
======== ========
See Notes to Unaudited Consolidated Financial Statements
<PAGE>
NEW ENGLAND BUSINESS SERVICE, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands Except Per Share Data)
Unaudited
---------
Three Months Ended Nine Months Ended
Mar.30, Mar. 31, Mar. 30, Mar. 31,
1996 1995 1996 1995
-------- -------- --------- ---------
NET SALES $ 63,100 $ 68,832 $ 194,046 $ 200,390
OPERATING EXPENSES:
Cost of sales 24,988 24,620 72,375 71,151
Selling and advertising 23,064 25,236 69,879 68,909
General and administrative 10,077 12,939 35,839 37,516
Exit costs 0 1,964 3,044 1,964
------- ------- -------- --------
Total operating expenses 58,129 64,759 181,137 179,540
INCOME FROM OPERATIONS 4,971 4,073 12,909 20,850
OTHER INCOME/(EXPENSE):
Investment income 333 314 875 978
Gain on sale of product line 435 0 435 0
------- ------ -------- -------
INCOME BEFORE INCOME TAXES 5,739 4,387 14,219 21,828
PROVISION FOR INCOME TAXES:
Federal 1,634 1,326 3,692 7,035
State 579 423 1,546 2,087
------- ------ ------- ------
Total 2,213 1,749 5,238 9,122
NET INCOME BEFORE LOSS ON
EQUITY METHOD INVESTMENT 3,526 2,638 8,981 12,706
Loss on equity method investment 182 ( 68) ( 820) ( 244)
--------- -------- --------- ---------
NET INCOME $ 3,708 $ 2,570 $ 8,161 $ 12,462
========= ======== ========= =========
PER SHARE AMOUNTS:
Net Income $ .25 $ . 17 $ .55 $ .81
========= ======== ========= =========
Dividends $ .20 $ .20 $ .60 $ .60
========= ======== ========= =========
WEIGHTED AVERAGE SHARES
OUTSTANDING 14,936 15,142 14,903 15,340
========= ======== ========= =========
See Notes to Unaudited Consolidated Financial Statements
<PAGE>
NEW ENGLAND BUSINESS SERVICE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
Unaudited
---------
Nine Months Ended
--------------------------
Mar. 30, Mar. 31,
1996 1995
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $8,161 $12,462
Adjustments to reconcile net income to cash:
Depreciation and amortization 8,974 9,061
Deferred income taxes ( 2,485) ( 2,785)
Other non-cash items 6,935 4,541
Changes in assets and liabilities:
Accounts receivable ( 5,005) ( 4,854)
Inventories and advertising material ( 86) ( 2,687)
Prepaid expenses 1,251 ( 1,319)
Accounts payable 1,067 2,128
Income taxes payable ( 1,561) ( 137)
Other accrued expenses ( 834) ( 683)
-------- ---------
Net cash provided by operating activities 16,417 15,727
-------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property and equipment ( 6,091) ( 8,958)
Purchase of investments ( 24,803) ( 24,461)
Proceeds from sale of investments 19,029 39,981
Proceeds from sale of building 3,465 0
Proceeds from sale of product line 4,500 0
Other assets 300 ( 386)
Investment in unconsolidated subsidiary 0 ( 1,800)
-------- ---------
Net cash provided by (used in) investing
activities ( 3,600) 4,376
-------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds (payment) of debt 2 ( 36)
Proceeds from issuing common stock 1,068 1,516
Issuance (purchase) of treasury stock 816 ( 9,578)
Dividends paid ( 8,944) ( 9,195)
-------- ---------
Net cash (used in) financing activities ( 7,058) ( 17,293)
-------- ---------
EFFECT OF EXCHANGE RATE ON CASH 165 139
-------- ---------
<PAGE>
NEW ENGLAND BUSINESS SERVICE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(In Thousands)
Unaudited
---------
Nine Months Ended
--------------------------
Mar. 30, Mar. 31,
1996 1995
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 5,924 2,949
CASH AND CASH EQUIVALENTS AT BEGINNING
OF YEAR 11,604 3,456
-------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $17,528 $ 6,405
======== =========
See Notes to Unaudited Consolidated Financial Statements
<PAGE>
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation
---------------------
The consolidated financial statements contained in this report are
unaudited but reflect all adjustments, consisting only of normal recurring
adjustments, which are, in the opinion of management, necessary for a fair
statement of the results of the interim periods reflected. Certain
information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been omitted pursuant to applicable rules and regulations
of the Securities and Exchange Commission. The results of operations for
the interim period reported herein are not necessarily indicative of
results to be expected for the full year.
2. Accounting Policies
-------------------
The consolidated financial statements included herein should be read in
conjunction with the financial statements and notes thereto, and the
Report of Independent Public Accountants incorporated by reference in the
Company's Annual Report on Form 10-K for the fiscal year ended June 30,
1995 from the Company's 1995 Annual Report to Shareholders.
Reference is made to the accounting policies of the Company described in
the notes to consolidated financial statements incorporated by reference
in the Company's Annual Report on Form 10-K for the fiscal year ended
June 30, 1995 from the Company's 1995 Annual Report to Shareholders. The
Company has consistently followed those policies in preparing this report.
3. Inventories
-----------
Inventories are carried at the lower of first-in, first-out cost or
market. Inventories at March 30, 1996 and June 30, 1995 consisted of:
Mar. 30, June 30,
1996 1995
------------ -----------
Raw paper $ 490,000 $ 1,130,000
Business forms and related office products 8,760,000 8,750,000
------------ -----------
Total $ 9,250,000 $ 9,880,000
============ ===========
<PAGE>
4. Equity Method Investment
------------------------
During the first quarter of fiscal year 1996, the Company revalued its 19
percent equity interest in GST Software, plc (GST). The decision to
revalue the equity interest was influenced by the continued operational
losses of GST and a change in the Company's software product strategy.
Accordingly, the Company's investment in GST was written down to $0 as of
September 30, 1995. In January, 1996, the Company sold its 19 percent
equity interest in GST for $300,000. The revaluation and subsequent sale
resulted in a $820,000 loss, net of the related income tax benefit of
$535,000, and was included in the consolidated statements of income as
loss on equity method investment.
5. Sale of Product Line
--------------------
During the third quarter of fiscal year 1996, the Company completed the
sale of selected assets of its Software and Services Division to Peachtree
Software, Inc. for $4,500,000, resulting in a gain of approximately
$435,000. The asset sale included the rights to the Company's One-Write
Plus accounting package and the Company's software development and technical
support organizations.
6. Exit Costs
----------
During the first quarter of fiscal year 1996, the Company implemented a
program to restructure operations which included a plan to close the
Company's Flagstaff, Arizona manufacturing facility. The program's
objectives are to improve manufacturing efficiency, to outsource select
corporate functions and to reduce fixed costs. The accompanying
consolidated statements of income include a $3,034,000 pretax charge
recognized in the first quarter ended September 30, 1995 for exit costs
associated with the program. The charge for exit costs reduced first
quarter net income by $1,839,000 or $.12 per share.
The $3,034,000 pretax charge for exit costs consisted of anticipated costs
of $1,214,000 related to the facility closure and termination benefits of
$1,820,000. Approximately 110 employees will be terminated as a result of
the restructuring program.
As of March 30, 1996, approximately $760,000 has been expended for
termination benefits and substantially all of the $1,214,000 facility
closure costs have been expended. The Company completed the sale of the
Flagstaff, Arizona facility for consideration of approximately $3,465,000
during the third quarter of fiscal year 1996. The restructuring program is
expected to be substantially complete by the end of fiscal year 1996.
<PAGE>
7. Other Charges
-------------
During the first quarter of fiscal year 1996, the Company revalued certain
software-related assets resulting in a first quarter charge of
approximately $3,683,000. The useful lives were also reevaluated, that
resulted in additional second and third quarter charges of $316,000 and
$273,000, respectively. The revaluation of the software-related assets
followed an impairment of their future realizable value resulting from
changes in the competitive environment and a change in the Company's
software product strategy. As a result of the revaluation, $273,000 was
included in cost of sales for the current quarter, and the amounts of
$1,235,000, $2,030,000, and $1,007,000 were included in cost of sales,
selling and advertising, and general and administrative expense,
respectively, on a year to date basis.
8. Subsequent Events
-----------------
On April 29, 1996, the Company announced a plan to repurchase up to
2,000,000 shares of its common stock on the open market. Unless renewed
or earlier completed, the repurchase will terminate on April 28, 1998.
<PAGE>
MANAGEMENT DISCUSSION AND ANALYSIS
Liquidity and Capital Resources
- -------------------------------
Cash provided by operating activities for the nine months ended March 30, 1996
was $16.4 million and represented an increase from the $15.7 million provided
in the same period last year. This increase in cash provided by operating
activities reflected a reduced rate of inventory build-up, a reduction in
prepaid expense balances and an increase in non-cash expense included in
net income; offset in part by lower net income during the period.
Working capital at March 30, 1996 amounted to $62.2 million including $34.7
million of cash and short term investments. This amount compares to working
capital of $47.7 million and cash and short term investment balances of $28.4
million at the same time last year. At the beginning of this fiscal year,
working capital amounted to $45.3 million and cash and short term investments
were $23.0 million. The increase in working capital balances from year end
reflect the increase in cash balances resulting from the sale of the Company's
Flagstaff, Arizona manufacturing facility and the sale of the Company's
One-Write Plus product line, in combination with an increase in accounts
receivable and deferred income tax balances.
Capital expenditures for the nine months amounted to $6.0 million and were
lower than the $9.0 million expended in 1995. The Company had commitments
for capital projects at quarter end of approximately $2.0 million. The
Company anticipates that capital outlays will continue at about the same pace
for the remainder of fiscal year 1996. These outlays are associated with
efforts to upgrade existing systems, to increase capacity and address
strategic initiatives throughout the Company.
In April, 1996 the Company announced a plan to purchase up to 2 million shares
of its common stock by the end of April, 1998. The purchase will be funded by
existing cash and short term investments and funds generated internally over
the period.
In addition to its present cash and investment balances, the Company has
consistently generated sufficient cash internally to fund its needs for
working capital, dividends and capital expenditures. However, should the
Company need additional funds, it has an unsecured line of credit with a major
bank for $10.0 million. At present, there are no outstanding borrowings
against this line.
Results of Operations
- ---------------------
The quarter ended March 30, 1996 included thirteen weeks as compared to
fourteen weeks in the prior year's third quarter. In the quarter ended
March 30, 1996, net sales decreased 8.3% to $63.1 million from $68.8 million;
a decrease of $5.7 million over the same period last year. This sales
decrease was composed of the impact of the additional week last year of 3.9% or
$2.7 million, volume decline of 9.4% or $6.4 million offset by price increases
of approximately 5.0% or $3.4 million.
On a year to date basis, net sales decreased 3.2% to $194.0 million from $200.4
million. This decrease was the result of the impact of the additional week in
fiscal 1995 of 1.3% or $2.7
<PAGE>
million, volume decline of 6.0% or $12.0 million offset by price increases of
4.1% or $8.3 million. For both the quarter and year to date the primary source
of the decline occurred in the Company's business forms lines. The Company's
priority for the remainder of the fiscal year is to counter the decline in the
business forms product lines through increased spending for mail order customer
acquisition and retention programs. In addition, during the quarter the Company
divested its ownership of the One-Write Plus software line in order to expand
the Company's opportunity to market a full range of third-party software and
compatible forms. Although the Company believes these initiatives will have a
positive impact on revenue trends over time, the Company's ability to completely
reverse the decline over the remainder of the fiscal year is limited.
For the quarter, cost of sales increased to 39.6% of sales from 35.8% last
year and to 37.3% from 35.5% on a year to date basis. This increase was due
primarily to one-time costs resulting from the revaluation of certain
software-related assets and investments in color printing technology as well as
some temporary manufacturing inefficiencies related to the closure of the
Flagstaff, Arizona manufacturing plant. See Note 7 in the Notes to Unaudited
Consolidated Financial Statements.
Selling and advertising expenses decreased slightly as a percentage of sales
from 36.7% to 36.5% in the quarter. On a year to date basis, selling and
advertising expenses increased from 34.4% to 36.0% of sales. For the year
this increase was due primarily to the operating charge related to the ongoing
restructuring program as well as to one-time costs resulting from the
revaluation of certain software-related assets. See Note 7 in the Notes to
Unaudited Consolidated Financial Statements.
General and administrative expenses decreased to 16.0% of sales from 18.8% for
the quarter and to 18.5% from 18.7% year to date. For the quarter, this
decrease was due to reduced expense resulting from the sale of the One-Write
Plus product line during the quarter, the effect of the company's cost reduction
program, reduced administrative system development costs and non-recurring
corporate expenses. For the year, this decrease was due primarily to the
aforementioned items offset by the costs resulting from the revaluation of
certain software-related assets. See Note 7 in the Notes to Unaudited
Consolidated Financial Statements.
During fiscal 1994, the Company recorded a $5.5 million pretax charge related
to a restructuring program. As of March 30, 1996, substantially all of
remaining reserve has been expended pursuant to severance and other agreements.
During the third quarter of fiscal 1995, the Company recorded a $2.0 million
pretax charge related to exit costs associated with the closure of the Company's
Wisconsin based SYCOM facility. As of March 30, 1996 approximately $.3 million
remains in the reserve, of which approximately $.2 million will be expended
pursuant to severance agreements and $.1 million related to facility closure
costs and equipment write-offs over the remainder of fiscal 1996.
During the first quarter of fiscal 1996, the Company recorded a $3.0 million
pretax charge, or $.12 per share, related to exit costs associated with a plan
to restructure operations including the closure of the Company's Flagstaff,
Arizona manufacturing facility. The objectives of this program are to improve
manufacturing efficiency, to outsource select corporate functions and to
<PAGE>
reduce fixed costs. The $3.0 million pretax charge consisted of
(i) approximately $1.8 million of anticipated cash payments related to
postemployment benefits in conjunction with the termination of approximately
110 employees of which approximately $1.0 million remains at March 30, 1996,
and (ii) approximately $1.2 million related to the anticipated non-cash outflows
associated with closure of the Flagstaff facility, all of which has been
expended as of March 30, 1996. The restructuring program is expected to be
completed over the remainder of fiscal 1996.
The gain on sale of product line resulted from the Company's sale of selected
assets of its Software and Services Division. See Note 5 in the Notes to
Unaudited Consolidated Financial Statements.
The provision for income taxes as a percentage of pretax income decreased from
1995 to 1996 due to a decrease in the proportion of taxable income resulting
from the exit cost charge taken in the first quarter of fiscal 1996 in relation
to non-taxable permanent differences.
The loss on investment resulted from the Company's revaluation and subsequent
sale of its investment in GST Software, plc. See Note 4 in the Notes to
Unaudited Consolidated Financial Statements.
<PAGE>
PART II - OTHER INFORMATION
---------------------------
Item 1. LEGAL PROCEEDINGS
To the Company's knowledge, no material legal proceedings are pending on
the date hereof to which the Company is a party or to which any property of
the Company is subject.
Item 2. CHANGES IN SECURITIES
Not applicable.
Item 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable.
Item 5. OTHER INFORMATION
Not applicable.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
a. Exhibits
Exhibit No. Description
----------- -----------
(2) Not applicable.
(3)(a) Certificate of Incorporation of the
Registrant. (Incorporated by reference
to the Company's Current Report on
Form 8-K dated October 31, 1986.)
(3)(b) Certificate of Merger of New England
Business Service, Inc. (a Massachusetts
corporation) and the Company, dated
October 24, 1986 amending the Certificate
of Incorporation of the Company by adding
Articles 14 and 15 thereto.
(Incorporated by reference to the
Company's Current Report on Form 8-K
dated October 31, 1986.)
<PAGE>
(3)(c) Certificate of Designations, Preferences
and Rights of Series A Participating
Preferred Stock of the Company, dated
October 27, 1989. (Incorporated by
reference to the Company's Annual Report
on Form 10-K for the fiscal year ended
June 30, 1995, filed September 15,
1995.)
(3)(d) By-Laws of the Registrant, as amended.
(Incorporated by reference to Exhibit
10(a) of the Company's Quarterly Report
on Form 10-Q for the Quarter ended
December 31, 1995, filed February 8,
1996.)
(4)(a) Specimen stock certificate for shares of
Common Stock, par value $1.00 per share.
(Incorporated by reference to the
Company's Annual Report on Form 10-K for
the fiscal year ended June 30, 1995,
filed September 15, 1995.)
(4)(b) Amended and Restated Rights Agreement,
dated October 27, 1989 as amended as
of October 20, 1994 (the "Rights
Agreement"), between New England Business
Service, Inc. and The First National
Bank of Boston, National Association, as
rights agent, including as Exhibit B the
forms of Rights Certificate Election to
Exercise. (Incorporated by reference to
Exhibit 4 of the Company's current report
on Form 8-K dated October 25, 1994.)
(10)(a) Separation Agreement dated
December 14, 1995 between the Company
and William C. Lowe. (Incorporated by
reference to Exhibit 10(a) of the
Company's Quarterly Report on Form 10-Q
for the Quarter ended December 31, 1995,
filed February 8, 1996.)
(11) Statement re computation of per share
earnings.
(15) Not applicable.
(18) Not applicable.
(19) Not applicable.
(22) Not applicable.
(23) Not applicable.
(24) Not applicable.
(27) Article 5 Financial Data Schedule.
<PAGE>
b. Reports on Form 8-K.
No reports on Form 8-K were filed during the Company's third quarter.
<PAGE>
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.
NEW ENGLAND BUSINESS SERVICE, INC.
----------------------------------
(Registrant)
May 13, 1996 /s/Russell V. Corsini, Jr.
- ------------ --------------------------
Date Russell V. Corsini, Jr.
Principal Financial and Accounting
Officer
New England Business Service, Inc.
Statement Re Computation of Per Share Earnings
(In Thousands Except Per Share Data)
Exhibit 11
----------
Three Months Ended Nine Months Ended
March 30, 1996 March 30, 1996
------------------ ------------------
Fully Fully
Primary Diluted Primary Diluted
------- ------- ------- -------
Shares
- ------
Weighted Average Shares
of Common Stock 14,936 14,936 14,903 14,903
Add:
Common Stock Equivalents
in the form of Stock Options 80 (1) 28 (1) 91 (1) 28 (1)
------- ------- ------- -------
Weighted Average Common Stock
and Common Stock Equivalents 15,016 14,964 14,994 14,931
======= ======= ======= =======
Earnings
- --------
Earnings per Consolidated
Statement of Income $ 3,708 $ 3,708 $ 8,161 $ 8,161
======= ======= ======= =======
Earnings per Share $ .25 $ .25 $ .54 $ .55
======= ======= ======= =======
(1) Amount considered immaterial for inclusion in earnings per share
calculation as defined in Accounting Principles Board Opinion No. 15.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEET OF NEW ENGLAND BUSINESS SERVICE, INC. AND ITS
SUBSIDIARIES AS OF MARCH 30, 1996 AND THE RELATED STATEMENTS OF CONSOLIDATED
INCOME AND CASH FLOWS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 9-MOS
<FISCAL-YEAR-END> JUN-29-1996 JUN-29-1996
<PERIOD-END> MAR-30-1996 MAR-30-1996
<CASH> 17,528 17,528
<SECURITIES> 17,170 17,170
<RECEIVABLES> 35,626 35,626
<ALLOWANCES> (3,420) (3,420)
<INVENTORY> 9,250 9,250
<CURRENT-ASSETS> 92,335 92,335
<PP&E> 99,837 99,837
<DEPRECIATION> (70,488) (70,488)
<TOTAL-ASSETS> 123,071 123,071
<CURRENT-LIABILITIES> 30,137 30,137
<BONDS> 0 0
0 0
0 0
<COMMON> 15,834 15,834
<OTHER-SE> 76,873 76,873
<TOTAL-LIABILITY-AND-EQUITY> 123,071 123,071
<SALES> 63,100 194,046
<TOTAL-REVENUES> 63,100 194,046
<CGS> 24,988 72,375
<TOTAL-COSTS> 33,141 108,762
<OTHER-EXPENSES> (586) (490)
<LOSS-PROVISION> 727 2,142
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 5,739 14,219
<INCOME-TAX> 2,213 5,238
<INCOME-CONTINUING> 3,708 8,161
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 3,708 8,161
<EPS-PRIMARY> .25 .54
<EPS-DILUTED> .25 .55
</TABLE>
