FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549-1004
Quarterly Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
For The Quarter Year Ended March 31, 1997
Commission File Number 0-8585
Dynamic Homes, Inc. (Exact name of registrant as specified in its charter)
Minnesota (State or Other Jurisdiction of Incorporation or Organization)
41-0960127 (IRS Employer Identification No.)
525 Roosevelt Avenue, Detroit Lakes, MN 56501(Address of principal executive
offices)
(218) 847-2611
(Registrant's Telephone Number Including Area Code)
Indicate by check mark whether the registrant (1) has filed all reports re-
quired 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
As of March 31, 1997, 2,240,850 common shares, par value, $.10 per share, were
outstanding. On January 7, 1995, the Company implemented a six month plan to
repurchase up to 100,000 shares of its outstanding common stock. As of March
31, 1997, a total of 43,080 shares have been repurchased. During 1996, the
Company approved a new stock option plan and granted 240,000 options to various
officers, directors and employees. The treasury stock and 230,000 unexercised
options have been excluded from the common shares outstanding.
PART I.
Item 1. Financial Statements
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DYNAIMC HOMES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED MARCH 31, 1997 & 1996
(Unaudited)
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Revenues
Single - Family 1,302,000 993,000
Multi - Family / Commercial 239,000 0
Other 59,000 49,000
Transportation 92,000 67,000
Shagawa Resort 56,000 0
Total Revenues - Net 1,748,000 1,109,000
Cost of Sales
Materials 901,000 557,000
Labor 171,000 93,000
Overhead 267,000 136,000
Transportation 184,000 145,000
Total Cost of Sales 1,523,000 931,000
Gross Profit 225,000 178,000
Operating Expenses
Marketing 85,000 93,000
Administration 186,000 174,000
Other 2,000 0
Shagawa Resort 56,000 0
Total Operating Expenses 329,000 267,000
Operating Income (104,000) (89,000)
Other (Income) Expense
Interest Expense 40,000 3,000
Other, Net (2,000) (4,000)
Total Other (Income) Expense 38,000 (1,000)
Income Before Taxes (142,000) (88,000)
Income Tax (Provision) Benefit 57,000 35,000
Net Income (85,000) (53,000)
Primary Earnings Per Common Share (0.04) (0.02)
Fully Diluted Earnings Per Common Share (0.03) (0.02)
Weighted Primary Average Number of Shares Outstanding 2,240,900 2,215,900
Weighted Fully Diluted Average Number of Shares Outstanding 2,580,600 2,215,900
Dividends per Common Share None None
See notes to consolidated financial statements.
</TABLE>
<TABLE>
DYNAMIC HOMES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 1997 & DECEMBER 28,1996
(Unaudited)
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ASSETS
CURRENT ASSETS:
Cash & cash equivalents 59,000 554,000
Accounts receivable, less allowance for doubtful
accounts, pledged 438,000 728,000
Inventories pledged (Note 2) 2,100,000 1,595,000
Prepaid expenses (Note 5) 374,000 29,000
Deferred income taxes (Note 4) 95,000 95,000
Total Current Assets 3,066,000 3,001,000
OTHER ASSETS:
Other assets, Net (Note 8) 397,000 402,000
PROPERTY, PLANT & EQUIPMENT, at:
Cost - pledged in part (Note 6) 6,163,000 5,890,000
Less - accumulated depreciation (1,740,000) (1,673,000)
Net Property, Plant & Equipment 4,423,000 4,217,000
Total Assets 7,886,000 7,620,000
LIABILITIES
CURRENT LIABILITIES:
Notes payable 125,000 0
Current portion - long-term debt 106,000 107,000
Accounts payable 633,000 216,000
Customer deposits 284,000 326,000
Accrued expenses
Salaries, wages and vacations 150,000 194,000
Taxes, other than income 125,000 78,000
Warranty 78,000 77,000
Other 38,000 108,000
Income Taxes (59,000) 0
Total Current Liabilities 1,480,000 1,106,000
LONG-TERM DEBT: (Note 7)
Less current portion included above 2,054,000 2,077,000
DEFERRED INCOME TAXES (Note 4) 34,000 34,000
Total Liabilities 3,568,000 3,217,000
STOCKHOLDERS' EQUITY
Common stock, par value $.10 per share
Authorized, 5,000,000 shares; issued and outstanding,
2,284,000 in 1997 and 1996 228,000 228,000
Paid-in capital in excess of par 147,000 147,000
Retained earnings 4,087,000 4,172,000
Treasury stock - 43,080 shares (144,000) (144,000)
Total Stockholders' Equity 4,318,000 4,403,000
Total Liabilities & Stockholders' Equity 7,886,000 7,620,000
See notes to consolidated financial statements.
</TABLE>
<TABLE>
DYNAMIC HOMES,INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1997 & 1996
(Unaudited)
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Cash Flows From Operating Activities
Net Income (Loss) (85,000) (53,000)
Adjust to Reconcile Net Income or Loss Provided
by (Used in) Operating Activities:
Depreciation and Amortization 95,000 35,000
Provision for Doubtful Accounts 2,000 2,000
(Gain) Loss on Sale of Property & Equipment 6,000 0
Change in Assets & Liabilities:
(Increase) Decrease in Receivables 288,000 459,000
(Increase) Decrease in Inventories (505,000) (909,000)
(Increase) Decrease in Prepaid Expenses (345,000) (177,000)
(Increase) Decrease in Deferred Income Tax 0 0
(Increase) Decrease in Other Assets (8,000) (29,000)
Increase (Decrease) in Accounts Payable 417,000 396,000
Increase (Decrease) in Customer Deposit (42,000) 608,000
Increase (Decrease) in Accrued Expenses (66,000) (26,000)
Increase (Decrease) in Income Tax Payable (59,000) (295,000)
Net Cash Provided by (Used in) Operating Activities (302,000) 11,000
Cash Flows From Investing Activities
Proceeds From Sale of Property & Equipment 0 0
Purchase of Property & Equipment (293,000) (771,000)
Purchase of Treasury Stock 0 0
Net Cash Provided by (used in) Investing Activities (293,000) (771,000)
Cash Flows From Financing Activities
Proceeds from Sale of Common Stock 0 0
Net Borrowings (Payments) on Revolving Credit
Agreements & Other Short-Term Financing 125,000 0
Principal Payments on Long-Term Borrowings Including
Revenue Bonds / Shagawa Resort (25,000) (1,000)
Proceeds From Long-Term Borrowings 0 278,000
Net Cash Provided by (Used in) Financing Activities 100,000 277,000
Increase (Decrease) in Cash and Equivalents (495,000) (483,000)
Cash and Equivalents
Beginning 554,000 543,000
Ending 59,000 60,000
Supplemental Disclosures of Cash Flow Information
Cash Payments for:
Income Taxes 3,000 260,000
Interest 43,000 0
See notes to condensed consolidated financial statements.
</TABLE>
DYNAMIC HOMES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 1. UNAUDITED STATEMENTS
In the opinion of management, the accompanying unaudited condensed con-
solidated financial statements contain all adjustments necessary to present
fairly the financial position of the Company as March 31, 1997 and December 28,
1996, and the results of operations and cash flows for the three months ended
March 31, 1997 and March 31, 1996.
Note 2. INVENTORIES
During interim accounting periods, the Company uses the standard cost
method of determining cost of sales and inventory levels. Cost of sales values
are determined monthly based on standards for materials, labor and overhead by
product mix. Deviations from these standards result in adjustments of the
monthly cost of sales amount. Periodic physical inventories are taken during
the fiscal year to determine actual inventory and cost of sales. No physical
inventory was taken during the first quarter of 1997.
The Breakdown of Inventories is as follows:
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Finished Goods 1,122,000 1,641,000
Work In Process 134,000 136,000
Raw Materials 844,000 770,000
Total Inventories 2,100,000 2,547,000
</TABLE>
Note 3. BACKLOG OF ORDERS
The Company's order backlog consists of completed units awaiting delivery,
current production and orders scheduled for future production. As of March 31,
1997 and March 31, 1996, the Company's backlog of unfilled orders was approxi-
mately $3,604,000 and $4,866,000 respectively. As of December 28, 1996, the
Company's backlog of unfilled orders was $2,593,000. The March 31, 1997, back-
log consists of approximately $3,548,000 single-family housing units and
$56,000 multi-family / commercial product. However, due to inclement weather
and road restrictions, the majority of finished product can not be delivered
and set until the latter stages of the second and early stages of the third
quarter of 1997. The March 31, 1996, backlog consisted of approximately
$3,906,000 single-family housing units and $960,000 of multi-family / commer-
cial product. As of March 31, 1997, the Company had 35 finished units in in-
ventory as compared with 49 at March 31, 1996.
Note 4. DEFERRED INCOME TAXES
Deferred income taxes relate primarily to differences between the basis of
receivables, property and equipment, accrued expenses and book / tax inventory
adjustments for financial and income tax reporting. The deferred tax assets
and liabilities represent future tax return consequences of those differences,
which will either be taxable or deductible when the assets and liabilities are
recovered and settled.
Note 5. PREPAID EXPENSES
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Advertising 3,000 25,000
Insurance 111,000 145,000
Revenue Bonds - Retirement Escrow 83,000 40,000
Equipment/Supplies/Inventory - Unallocated-Shagawa Resort 168,000 0
Other 9,000 6,000
Total Prepaid Expenses 374,000 216,000
</TABLE>
Note 6. PROPERTY AND EQUIPMENT
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Dynamic Homes, Inc.
Land and Improvements 165,000 130,000
Buildings 971,000 972,000
Machinery and Equipment 1,629,000 1,312,000
Construction in Progress 354,000 5,000
Shagawa Resort, Inc.
Land and Improvements 329,000 160,000
Buildings 2,098,000 0
Furniture, Fixtures and Equipment 617,000 0
Construction in Progress 0 2,448,000
6,163,000 5,027,000
Less: Accumulated Depreciation - Dynamic Homes, Inc. (1,627,000) (1,503,000)
Accumulated Depreciation - Shagawa Resort, Inc. (113,000) 0
Total Property and Equipment 4,423,000 3,524,000
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Note 7. LONG-TERM DEBT
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Long-term Debt (net of current maturities) consists of: 3/31/97 3/31/96
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Industrial Development Bonds of Detroit Lakes, MN 45,000 80,000
M & I Leasing - Capitalized Crane Lease 199,000 0
Term Mortgage Loan Agreement covering Shagawa Resort
project - (Note 9) 1,810,000 1,256,000
Other Notes and Contracts 0 7,000
Total Long-Term Debt 2,054,000 1,343,000
</TABLE>
Note 8. OTHER ASSETS - NET
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Dynamic Homes, Inc.
- Deferred Bond & Maintenance Expense 2,000 5,000
- Prepaid Debt Expense 9,000 0
- Deposits 6,000 1,000
Shagawa Resort, Inc.
- Prepaid Advertising 9,000 0
- Prepaid Legal / Debt Expense 191,000 0
- Organization / Start-up 165,000 61,000
- Asset Replacement Escrow 15,000 0
Total Other Assets - Net 397,000 67,000
</TABLE>
The above referenced Other Assets for Shagawa Resort, Inc. are being amortized
on a straight-line basis over the estimated useful life of the asset as
follows:
Advertising 3 years
Organization / Start-up 5 years
Legal / Debt Expense 20 years
Note 9. SHAGAWA RESORT, INC.
On September 7, 1995, the Company purchased all of the outstanding shares
of Shagawa Resort, Inc., the sole owner of a Holiday Inn Sunspree Motel which
was under construction and located at 400 North Pioneer Road in Ely, Minnesota.
The motel consists of approximately 54,000 square feet of buildings consisting
of 61 units and includes lounge, dining, recreational and meeting facilities on
approximately 25 acres of land. The purchase price consisted of cash and a
construction mortgage assumption to NorWest Bank Minnesota for the financing of
the construction costs associated with completing the Shagawa Resort, Inc.
hotel / resort facility. The hotel / resort remained under construction until
May 1, 1996, when the hotel / resort commenced with normal business operations.
During August 1996, the construction mortgage was finalized and converted to a
long-term mortgage loan which is secured by the assets of Shagawa Resort, Inc.
and a partial guarantee of the Small Business Administration. Monthly install-
ments of principal and interest approximate $16,000 with a blended interest
rate of approximately 8 percent (Note 7).
In conjunction with the purchase of Shagawa Resort, Inc., the Company
simultaneously entered into a Management Agreement with Northland Adventures
Minnesota, Ltd. to operate and manage the hotel / resort from the opening date
(May 1, 1996) until December 15, 1997. The Management Agreement required the
Managing Agent to pay minimum monthly payments of $22,100 to the Company, plus
a percentage of room and food / beverage receipts when these amounts exceed the
minimum rentals on an annual basis. During the duration of the agreement, the
Managing Agent absorbs or retains any operating profit or loss generated by the
operation of the facility. During fiscal 1996, the Managing Agent met its
minimum monthly payment obligations. On March 17, 1997, the Company and North-
land Adventures Minnesota, Ltd. collectively reached an Asset Purchase Agree-
ment whereby the Company purchased substantially all assets of the Business.
All prior agreements pertaining to the management of the hotel / resort facil-
ity have been terminated. Consequently, effective March 17, 1997, the Company
has assumed the management obligations and rights associated with the Shagawa
Resort, Inc. facility. Operational results for the period March 17 - 31, 1997,
were not recognized during the first quarter of 1997.
MANAGEMENT'S DISCUSSION & ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL
CONDITION
Results of Operations Three Months Ended March 31, 1997 and 1996
NET SALES:
The Company's revenue for the three months ended March 31, 1997 was
$1,748,000 as compared to $1,109,000 for the year earlier period or an in-
crease of 58 percent. Single-family revenues increased by $309,000 from
$993,000 in 1996 to $1,302,000 for 1997. During 1997, the Company also real-
ized revenues of $239,000 from two multi-family housing projects. In contrast,
the first quarter of 1996 did not have any multi-family / commercial related
revenue. Due to the increased unit sales volume for 1997, both the transporta-
tion and other / retail sectors had revenue increases of $25,000 and $10,000,
respectively. In addition, during 1997 the Company also reported $56,000 of
revenue relating to the monthly lease structure associated with the Shagawa
Resort facility. A significant portion of the 1997 first quarter single-family
revenue related to the on-going delivery and setting activity associated with
the 45-unit single-family contract, signed in April, 1996, with the Fort
Berthold Housing Authority. As of March 31, 1997, the contract is near comple-
tion with only three units remaining for delivery and set. Revenues are not
recognized until a unit has been delivered and set.
The Company's backlog at March 31, 1997 was $3,604,000 as compared to
$4,866,000 at March 31, 1996 (reference Note 3). However, recent unit orders
for single-family housing are beginning to register increased activity. As of
April 30, 1997, the Company's order backlog is at $4,689,000, up $1,085,000
from March 31, 1997, but significantly less than the $7,246,000 at April 30,
1996. The April 30, 1996, backlog included the housing project for the Fort
Berthold Housing Authority and an 80-unit motel project. Although the Company
has several potential projects pending, actual orders for multi-family / com-
mercial activity continue to be soft.
COST OF SALES:
The Company's gross profit (including transportation and Shagawa Resort,
Inc.) was $225,000 for 1997 as compared to $178,000 for 1996. Gross profit
percentage for the first three months of each period are 12.9% and 16.1%,
respectively. When transportation revenue and expense plus Shagawa Resort
revenue are excluded, the gross profit on product changes to 16.3% and 24.6%,
respectively. The 1997 gross margin percent was negatively affected by an in-
crease in winter promotion and model home discounts and unfavorable production
variances. During the first quarter of 1997, the Company operated at approx-
imately 55% of its practical single-shift capacity. This resulted in unfavor-
able variances for both labor and overhead which adversely impacted the gross
margin percent. Material acquisition costs have remained relatively stable
during the first quarter of 1997.
OPERATING EXPENSES:
The Company's 1997 operating expenses, which include transportation,
marketing, administration and Shagawa Resort, increased by $101,000 over the
1996 period. Due to increased volume related to delivery and setting activity,
1997 transportation expenses increased by $39,000. Marketing related expenses
decreased by $8,000, while administrative and other expenses increased by
$14,000. Holding costs, consisting primarily of depreciation and amortization
expenses, associated with the ownership of the Shagawa Resort property added an
additional $56,000 of expense. The Shagawa Resort facility was under construc-
tion during the first quarter of 1996 and consequently did not have any affect
on operating expenses.
OPERATING INCOME (LOSS):
The operating cycle for the first three months of 1997 resulted in a loss
of $104,000 as compared to a loss of $89,000 for the 1996 period. The decrease
in operating results primarily reflects the impact of a higher level of produc-
tion generated unfavorable variances and the holding costs associated with the
ownership of the Shagawa Resort property.
NET NON - OPERATING INCOME / EXPENSE:
Non-operating expenses for the first quarter of 1997 were $38,000 as com-
pared to a non-operating income of $1,000 for the 1996 period. Interest
related expenses for 1997 increased by $37,000 from 1996. Interest expense
associated with the financing of the Shagawa Resort property generated $32,000
of interest expense during the first quarter of 1997. Other income for both
periods remained constant at $2,000 for 1997 and $4,000 for 1996.
FEDERAL AND STATE INCOME TAXES:
Due to the loss incurred during the first quarters of both 1997 and 1996,
the Company recorded a tax benefit of $57,000 and $35,000, respectively.
Income tax obligations and benefits are estimated at the normal statutory rate.
NET INCOME (LOSS):
The net loss for the first quarter of 1997 was $85,000 as compared with a
net loss of $53,000 for 1996. During the first quarter of 1997, the ownership
of the Shagawa Resort property increased the Company's net loss by approx-
imately $.01 per share. Operational results for the Shagawa Resort were not
included in the 1997 first quarter results (Note 9). Primary earnings per
common share outstanding for 1997 was a negative $.04 per share versus a
negative $.02 per share for 1996. After consideration for unexercised stock
options granted in 1996, fully-diluted earnings per common share for 1997 was
a negative $.03 per share versus a negative $.02 per share for 1996.
Financial Condition As of March 31, 1997
The Company's working capital was a positive $1,586,000 at March 31, 1997
versus $1,204,000 at March 31, 1996. The working capital at December 28, 1996
was a positive $1,895,000. The current ratio for March 31, 1997 was 2.1 to 1.0
as compared to 2.7 to 1.0 at December 28, 1996 and 1.6 to 1.0 at March 31,
1996.
During the first quarter of 1997, cash outflows were required for the
build-up of inventory, renewal of the Company's insurance package, the plant
expansion project and reductions to accrued expenses. In addition, funds were
required for the purchase of equipment, supplies and inventory associated with
the management and operation of the Shagawa Resort facility (Note 9). Cash
flows to support the referenced activities were primarily provided by using the
Company's 1996 year-end cash and cash equivalents position, receivable collec-
tions, supplier payment terms and borrowings under the Company's credit line.
Long-term debt, net of current maturities, increased $711,000 from
$1,343,000 at March 31, 1996 to $2,054,000 at March 31, 1997. Long-term debt,
net of current maturities, was $2,077,000 at December 28, 1996. Long-term
debt consists primarily of a long-term construction mortgage loan, which is
secured by substantially all assets of Shagawa Resort, Inc. with a partial
guarantee of the Small Business Administration, a capitalized lease obligation
secured by leased transportation equipment and Industrial Development Revenue
Bonds which financed the purchase of property and equipment for the Company's
manufacturing facility (Note 7). On April 1, 1997, the Company retired all
outstanding debt associated with the Industrial Development Revenue Bonds. The
debt retirement was required to provide collateral for a recently restructured
long-term debt financing package. The new financing package will provide
funding for the plant expansion project which started late last fall. The
plant expansion should be operational by the end of June, 1997 and adds 17,000
square feet of additional production space and increases production capacity by
approximately 15 percent. The new funding will provide the Company with
$1,000,000 of proceeds which will be used for financing the plant expansion,
including equipment and working capital for additional inventory requirements.
As of this date, the Company has drawn 40% of the available funds.
The ratio of long-term debt to stockholders' equity changed from .39 to
1.0 at March 31, 1996, to .47 to 1.0 at December 28, 1996, reflecting the long-
term debt acquired during 1996 for transportation equipment and financing asso-
ciated with the Shagawa Resort project. The ratio of long-term debt to stock-
holders' equity at March 31, 1997, was .48 to 1.0. Due to the net loss in-
curred during the first quarter of 1997, stockholders' equity (net of treasury)
stock decreased from $4,403,000 at December 28, 1996, to $4,318,000 at March
31, 1997.
On May 1, 1997, Dynamic Homes, Inc. renewed its available credit line for
an additional one-year period. The available credit line is $1,100,000 and
exempts all existing letters of credit from reducing the available credit line.
The available credit line is discretionary and is based upon specified percent-
ages of inventory and receivables. As of March 31, 1997, the Company had
$125,000 outstanding against its available credit line of $675,000. As of this
date, the Company has $275,000 outstanding against its available credit line of
$1,100,000.
Management believes internally generated cash, short-term borrowings on
its existing credit line and long-term financing arrangements on major capital
additions should continue to provide adequate funds to support the Company
operations and scheduled capital additions during the remainder of 1997.
Statements regarding the Company's operations, performance and financial
condition for 1997 are subject to certain risks and uncertainties. These risks
and uncertainties include but are not limited to: rising mortgage interest
rates and/or weakness in regional and national economic conditions that could
have an adverse impact on new home and multi-family/commercial sales. Like-
wise, escalating and volatile material costs could also affect the Company's
profit margins.
PART II.
Items 1, 2, 3, 4 and 5 are omitted as each is either not applicable or the an-
swer to the item is negative.
Item 6. Exhibits and Reports on Form 8-K:
No reports on Form 8-K have been filed during the quarter ended March 31,
1997. However, a Form 8-K was filed on April 1, 1997, regarding an Asset
Purchase Agreement whereby Dynamic Homes, Inc. acquired said assets to manage
and operate the Holiday Inn Sunspree Motel in Ely, Minnesota (Note 9).
SIGNATURE
Pursuant to the requirements of the Securities Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.
Dated: May 13, 1997
Dynamic Homes, Inc.
(Registrant)
(Registrant)
GLENN ANDERSON
Glenn Anderson
President
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<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM CONDENSED
CONSOLIDATED INCOME STATEMENTS AND CONDENSED CONSOLIDATED BALANCE SHEETS AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-28-1996
<PERIOD-END> MAR-31-1997
<CASH> 59000
<SECURITIES> 0
<RECEIVABLES> 479700
<ALLOWANCES> 41700
<INVENTORY> 2100000
<CURRENT-ASSETS> 3066000
<PP&E> 6163000
<DEPRECIATION> (1740000)
<TOTAL-ASSETS> 7886000
<CURRENT-LIABILITIES> 1480000
<BONDS> 2054000
0
0
<COMMON> 228000
<OTHER-SE> 4090000
<TOTAL-LIABILITY-AND-EQUITY> 7886000
<SALES> 1600000
<TOTAL-REVENUES> 1748000
<CGS> 1339000
<TOTAL-COSTS> 1523000
<OTHER-EXPENSES> 329000
<LOSS-PROVISION> 1500
<INTEREST-EXPENSE> 40000
<INCOME-PRETAX> (142000)
<INCOME-TAX> (57000)
<INCOME-CONTINUING> (85000)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (85000)
<EPS-PRIMARY> (.04)
<EPS-DILUTED> (.03)
</TABLE>
