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 September 30, 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: 1-6469
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CAROLINA TELEPHONE AND TELEGRAPH COMPANY
(Exact name of registrant as specified in its charter)
NORTH CAROLINA 56-0931189
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
P.O. Box 11315, Kansas City, Missouri 64112
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(Address of principal executive offices)
913-624-3000
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(Registrant's telephone number, including area code)
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14111 Capital Boulevard, Wake Forest, North Carolina 27587
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(Former name, former address and former fiscal year, if changed
since last report)
This registrant meets the conditions of General Instruction H(1)(a) and (b)
of Form 10-Q and is therefore filing this form with the reduced disclosure
format.
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 such filing
requirements for the past 90 days.
Yes X No ___
There are no equity securities held by non-affiliates.
There were 3,626,510 common shares outstanding at September 30, 1998.
<PAGE>
CAROLINA TELEPHONE AND TELEGRAPH COMPANY
FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 1998
INDEX
<TABLE>
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Page
Part I - Financial Information
Item 1. Consolidated Financial Statements
<S> <C>
Consolidated Balance Sheets 1
Consolidated Statements of Income and Retained Earnings 2
Consolidated Statements of Cash Flows 3
Condensed Notes to Consolidated Financial Statements 4
Item 2. Management's Discussion and Analysis of Results of Operations 5
Item 3. Quantitative and Qualitative Disclosures About Market Risk 8
Part II - Other Information
Item 1. Legal Proceedings 9
Item 2. Changes in Securities 9
Item 3. Defaults Upon Senior Securities 9
Item 4. Submission of Matters to a Vote of Security Holders 9
Item 5. Other Information 9
Item 6. Exhibits and Reports on Form 8-K 9
Signatures 10
Exhibits
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<TABLE>
<CAPTION>
PART I.
Item 1.
CONSOLIDATED BALANCE SHEETS Carolina Telephone and Telegraph Company
(in thousands, except per share data)
- --------------------------------------------------------------------- -- ------------------ --- ------------------
September 30, December 31,
1998 1997
- --------------------------------------------------------------------- -- ------------------ --- ------------------
(unaudited)
Assets
Current assets
<S> <C> <C>
Cash $ 272 $ 104
Accounts receivable
Customers and other, net of allowance for doubtful accounts
of $6,214 and $4,818 133,904 123,019
Interexchange carriers 24,627 22,107
Affiliated companies 7,611 29,045
Inventories 16,562 11,295
Other 3,641 5,541
- --------------------------------------------------------------------- -- ------------------ --- ------------------
Total current assets 186,617 191,111
- --------------------------------------------------------------------- -- ------------------ --- ------------------
Property, plant and equipment 2,150,856 2,055,464
Less accumulated depreciation 1,230,666 1,158,542
- --------------------------------------------------------------------- -- ------------------ --- ------------------
Net property, plant and equipment 920,190 896,922
- --------------------------------------------------------------------- -- ------------------ --- ------------------
Prepaid pension 89,223 61,779
- --------------------------------------------------------------------- -- ------------------ --- ------------------
Deferred charges and other assets 36,151 36,953
- --------------------------------------------------------------------- -- ------------------ --- ------------------
Total $ 1,232,181 $ 1,186,765
-- ------------------ --- ------------------
Liabilities and Shareholder's Equity
Current liabilities
Outstanding checks in excess of cash balances $ 544 $ 16,694
Advances from parent 136,943 152,393
Accounts payable
Vendors and other 21,116 15,682
Interexchange carriers 24,806 20,366
Affiliated companies 31,355 26,479
Advance billings 16,044 14,034
Other 33,923 22,759
- --------------------------------------------------------------------- -- ------------------ --- ------------------
Total current liabilities 264,731 268,407
- --------------------------------------------------------------------- -- ------------------ --- ------------------
Long-term debt 198,954 198,813
- --------------------------------------------------------------------- -- ------------------ --- ------------------
Deferred credits and other liabilities
Deferred income taxes and investment tax credits 106,257 98,064
Postretirement and other benefit obligations 90,516 73,413
Other 2,060 1,702
- --------------------------------------------------------------------- -- ------------------ --- ------------------
Total deferred credits and other liabilities 198,833 173,179
- --------------------------------------------------------------------- -- ------------------ --- ------------------
Shareholder's equity
Common stock, par value $20 per share, 5,000 shares
authorized, 3,627 shares issued and outstanding 72,530 72,530
Capital in excess of par value 75,744 75,744
Retained earnings 421,389 398,092
- --------------------------------------------------------------------- -- ------------------ --- ------------------
Total shareholder's equity 569,663 546,366
- --------------------------------------------------------------------- -- ------------------ --- ------------------
Total $ 1,232,181 $ 1,186,765
-- ------------------ --- ------------------
See accompanying Condensed Notes to Consolidated Financial Statements.
</TABLE>
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<TABLE>
<CAPTION>
PART I.
Item 1.
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS Carolina Telephone and Telegraph Company
(Unaudited)
(in thousands)
- --------------------------------------------------- ------------------------------- ------------------------------
Quarter Ended Year-to-Date
September 30, September 30,
------------------------------- ------------------------------
1998 1997 1998 1997
- --------------------------------------------------- --- ----------- -- ------------ -- ------------ -- -----------
<S> <C> <C> <C> <C>
Net Operating Revenues $ 231,886 $ 210,898 $ 674,793 $ 631,247
Operating Expenses
Costs of services and products 91,633 80,409 270,793 244,596
Selling, general and administrative 50,567 40,645 146,834 120,854
Depreciation and amortization 35,423 35,689 104,494 105,658
- --------------------------------------------------- --- ----------- -- ------------ -- ------------ -- -----------
Total operating expenses 177,623 156,743 522,121 471,108
- --------------------------------------------------- --- ----------- -- ------------ -- ------------ -- -----------
Operating Income 54,263 54,155 152,672 160,139
Interest expense (4,467) (5,913) (15,076) (16,717)
Other income, net 3,119 3,439 9,669 10,801
- --------------------------------------------------- --- ----------- -- ------------ -- ------------ -- -----------
Income before income taxes 52,915 51,681 147,265 154,223
Income taxes (19,512) (18,997) (54,333) (57,321)
- --------------------------------------------------- --- ----------- -- ------------ -- ------------ -- -----------
Net Income $ 33,403 $ 32,684 92,932 96,902
--- ----------- -- ------------
Retained Earnings at Beginning of Period 398,092 366,466
Dividends declared (69,635) (71,986)
- --------------------------------------------------- --- ----------- -- ------------ -- ------------ -- -----------
Retained Earnings at End of Period $ 421,389 $ 391,382
-- ------------ -- -----------
See accompanying Condensed Notes to Consolidated Financial Statements.
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<TABLE>
<CAPTION>
PART I.
Item 1.
CONSOLIDATED STATEMENTS OF CASH FLOWS Carolina Telephone and Telegraph Company
(Unaudited)
(in thousands)
- ------------------------------------------------------------------------------- --- ------------- -- -------------
Year-to-Date September 30, 1998 1997
- ------------------------------------------------------------------------------- --- ------------- -- -------------
Operating Activities
<S> <C> <C>
Net income $ 92,932 $ 96,902
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization 104,494 105,658
Deferred income taxes and investment tax credits 10,498 3,980
Changes in assets and liabilities:
Receivables, net 8,029 (9,704)
Inventories and other current assets (5,163) (1,760)
Accounts payable, accrued expenses and other current liabilities 11,780 20,589
Other assets and liabilities, net (9,555) (3,942)
- ------------------------------------------------------------------------------- --- ------------- -- -------------
Net cash provided by operating activities 213,015 211,723
- ------------------------------------------------------------------------------- --- ------------- -- -------------
Investing Activities
Capital expenditures (131,143) (124,110)
Other, net 3,381 (2,008)
- ------------------------------------------------------------------------------- --- ------------- -- -------------
Net cash used by investing activities (127,762) (126,118)
- ------------------------------------------------------------------------------- --- ------------- -- -------------
Financing Activities
Increase (Decrease) in advances from parent (15,450) 6,287
Payments on long-term debt - (875)
Dividends paid (69,635) (71,986)
- ------------------------------------------------------------------------------- --- ------------- -- -------------
Net cash used by financing activities (85,085) (66,574)
- ------------------------------------------------------------------------------- --- ------------- -- -------------
Increase in Cash and Equivalents 168 19,031
Cash and Equivalents at Beginning of Period 104 414
- ------------------------------------------------------------------------------- --- ------------- -- -------------
Cash and Equivalents at End of Period $ 272 $ 19,445
--- ------------- -- -------------
Supplemental Cash Flow Information
Cash paid for interest, net of amounts capitalized $ 15,376 $ 16,293
--- ------------- -- -------------
Cash paid for income taxes $ 42,255 $ 44,491
--- ------------- -- -------------
See accompanying Condensed Notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
PART I.
Item 1.
CONDENSED NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS Carolina Telephone and Telegraph Company
(Unaudited)
The information in this Form 10-Q has been prepared according to Securities and
Exchange Commission rules and regulations. In our opinion, the consolidated
interim financial statements reflect all adjustments (consisting only of normal
recurring accruals) needed to fairly present Carolina Telephone and Telegraph
Company's consolidated financial position, results of operations and cash flows.
Certain information and footnote disclosures normally included in consolidated
financial statements prepared according to generally accepted accounting
principles (GAAP) have been condensed or omitted. As a result, you should read
these financial statements along with Carolina Telephone and Telegraph Company's
1997 Annual Report on Form 10-K. Operating results for the 1998 year-to-date
period do not necessarily represent the results that may be expected for the
year ending December 31, 1998.
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1. Basis of Consolidation
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The consolidated financial statements include the accounts of Carolina Telephone
and Telegraph Company and its wholly-owned subsidiaries. All significant
intercompany transactions have been eliminated. CT&T is a wholly-owned
subsidiary of Sprint Corporation; as a result, earnings per share information
has been omitted.
The consolidated financial statements are prepared based on GAAP. These
principles require management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities, and the reported amounts of revenues and expenses. Actual
results could differ from those estimates.
Certain prior-year amounts have been reclassified to conform to the
current-period presentation. These reclassifications had no effect on the
results of operations or shareholder's equity as previously reported.
<PAGE>
PART I.
Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS Carolina Telephone and Telegraph Company
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General
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Carolina Telephone and Telegraph Company, with its wholly-owned subsidiaries,
includes certain estimates, projections and other forward-looking statements in
its reports, in presentations to analysts and others, and in other publicly
available material. Future performance cannot be ensured. Actual results may
differ materially from those in the forward-looking statements. Factors that
could cause actual results to differ materially from estimates or projections
contained in the forward-looking statements include:
- the effects of vigorous competition in the markets in which CT&T
operates;
- the impact of any unusual items resulting from ongoing evaluations of
CT&T's business strategies;
- requirements imposed on CT&T or latitude allowed its competitors by
the Federal Communications Commission (FCC) or North Carolina
Utilities Commission under the Telecommunications Act of 1996
(Telecom Act);
- unexpected results of litigation filed against CT&T;
- the impact of the Year 2000 issue and any related noncompliance; and
- the possibility of one or more of the markets in which CT&T competes
being impacted by changes in political, economic or other factors
such as legal and regulatory changes or other external factors over
which CT&T has no control.
The words "estimate", "project", "intend", "expect", "believe" and similar
expressions are intended to identify forward-looking statements. These
forward-looking statements are found at various places throughout Management's
Discussion and Analysis of Results of Operations. You should not place undue
reliance on these forward-looking statements, which speak only as of the date of
this document. CT&T undertakes no obligation to publicly release any revisions
to these forward-looking statements to reflect events or circumstances after the
date of this document or to reflect the occurrence of unanticipated events.
Moreover, we may from time to time make forward-looking statements about the
matters described in this document or other matters concerning CT&T.
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Regulatory Developments
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In September 1998, the U.S. Court of Appeals voted to uphold the provisions of
the Telecom Act line-of-business restrictions on the Regional Bell Operating
Companies (RBOCs). Previously, a federal district court in Wichita Fall, Texas,
ruled that these restrictions unlawfully singled out the RBOCs for punishment.
Certain of the RBOCs have filed a petition asking the U.S. Supreme Court to
consider whether the restrictions violate the U.S.Constitution.
<PAGE>
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Results of Operations
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Selected Operating Results
---------------------------------------------------------------------
Year-to-Date
September 30, Variance
--- ------------- -- ------------- ------------- ----------------
1998 1997 $ %
- -------------------------------------------- ---------------------------------------------------------------------
(in thousands)
Net Operating Revenues
<S> <C> <C> <C> <C>
Local service $ 314,248 $ 290,226 $ 24,022 8.3%
Network access 181,708 175,994 5,714 3.2%
Toll service 18,351 27,829 (9,478) (34.1)%
Other 160,486 137,198 23,288 17.0%
- -------------------------------------------- --- ------------- -- ------------- --- -------------
Net operating revenues 674,793 631,247 43,546 6.9%
- -------------------------------------------- --- ------------- -- ------------- --- -------------
Operating Expenses
Costs of services and products 270,793 244,596 26,197 10.7%
Selling, general and administrative 146,834 120,854 25,980 21.5%
Depreciation and amortization 104,494 105,658 (1,164) (1.1)%
- -------------------------------------------- --- ------------- -- ------------- --- -------------
Total operating expenses 522,121 471,108 51,013 10.8%
- -------------------------------------------- --- ------------- -- ------------- --- -------------
Operating Income $ 152,672 $ 160,139 $ (7,467) (4.7)%
--- ------------- -- ------------- --- -------------
Operating Margin 22.6% 25.4%
--- ------------- -- -------------
</TABLE>
Net Operating Revenues
Net operating revenues increased 7% in the 1998 year-to-date period compared
with the same 1997 period. This increase mainly reflects customer access line
growth of 5.2% during the past 12 months, partly offset by decreases in toll
service revenues.
Local service revenues, derived from local exchange services, increased 8% in
the 1998 year-to-date period from the same 1997 period. Local service revenues
increased because of access line growth and continued demand for network-based
services. This increase also reflects increased sales of private line services
and maintenance of customer wiring and equipment.
Network access revenues, derived from long distance companies using CT&T's local
network to complete calls, increased 3% in the 1998 year-to-date period compared
with the same 1997 period. These revenues reflect an 8% increase in minutes of
use, partly offset by FCC-mandated access rate reductions. Access rate
reductions impacting the periods reported took effect in July 1997 and January
and July 1998.
Toll service revenues are mainly derived from providing long distance services
within specified regional calling areas that are beyond the local calling area.
These revenues decreased 34% in the 1998 year-to-date period from the same 1997
period, reflecting extended local calling areas and increased competition in the
intrastate long distance market. These losses were, in part, offset by increases
in the local service revenues since local calling areas have been expanded and
by increases in network access revenues paid by competitors.
Other revenues include telecommunications equipment sales, directory sales and
listing services, billing and collection services, and services to locate
underground utility lines. Other revenues increased 17% in the 1998 year-to-date
period from the same 1997 period. This was mainly due to increases in equipment
sales and expanded operations of locating underground utility lines. Partly
offsetting this increase was a decrease due to a July 1997 change in transfer
pricing for certain transactions between CT&T and Sprint's product distribution
and directory publishing division to more accurately reflect market pricing.
<PAGE>
Operating Expenses
Costs of services and products includes costs to operate and maintain the local
network and costs of equipment sales. These expenses increased 11% in the 1998
year-to-date period from the same period a year ago. This reflects continued
cost control, while still supporting customer access line growth and increased
equipment sales. Costs of services and products for 1998 also includes costs
related to CT&T's efforts to achieve Year 2000 compliance for its
telecommunications network and operating systems. Costs of services and products
was 40.1% of net operating revenues in the 1998 year-to-date period versus 38.7%
for the same period a year ago.
Selling, general and administrative (SG&A) expense increased 21% in the 1998
year-to-date period from the same 1997 period. This increase was due to
increased customer service costs related to access line growth, increased
marketing costs to promote new products and services, and the expanded
operations of locating underground utility lines. SG&A for 1998 also includes
costs related to CT&T's efforts to achieve Year 2000 compliance for computer
systems and other items such as billing, customer service, and other
administrative systems. SG&A expense was 21.8% of net operating revenues in the
1998 year-to-date period versus 19.2% for the same period a year ago.
Depreciation and amortization expense decreased 1% in the 1998 year-to-date
period from the same 1997 period. This decrease reflects lower depreciation
rates resulting from longer asset lives, partly offset by an increase in capital
expenditures. Depreciation and amortization expense was 15.5% of net operating
revenues in the 1998 year-to-date period versus 16.7% for the same period a year
ago.
- --------------------------------------------------------------------------------
Year 2000 Issue
- --------------------------------------------------------------------------------
The "Year 2000" issue affects Sprint Corporation's, which includes CT&T,
installed computer systems, network elements, software applications, and other
business systems that have time-sensitive programs that may not properly reflect
or recognize the year 2000. Because many computers and computer applications
define dates by the last two digits of the year, "00" may not be properly
identified as the year 2000. This error could result in miscalculations or
system errors. The Year 2000 issue may also affect the systems and applications
of Sprint's customers, vendors or resellers.
Sprint started a program in 1996 to identify and address the Year 2000 issue. It
has completed an inventory and Year 2000 assessment of its principal computer
systems, network elements, software applications and other business systems.
Sprint expects to substantially complete the renovation of these computer
systems, software applications and the majority of the network elements and
other business systems by year-end 1998. Year 2000 testing commenced in the
third quarter of 1998 and will be completed during 1999. Sprint is using both
internal and external sources to identify, correct or reprogram, and test its
systems for Year 2000 compliance. Sprint is also contacting others with whom it
conducts business to receive the appropriate warranties and assurances that
those third parties are or will be Year 2000 compliant.
Sprint expects to incur approximately $250 million in 1998 and 1999 to complete
its Year 2000 compliance program. These estimates include costs for Sprint and
all of its subsidiaries. If compliance is not achieved in a timely manner by
Sprint or any significant related third party, the Year 2000 issue could have a
material adverse effect on the operations of Sprint and its subsidiaries. Sprint
is focusing on identifying and addressing all aspects of its operations that may
be affected by the Year 2000 issue and is addressing the most critical
applications first. Although Sprint intends to develop and, if necessary,
implement appropriate contingency plans to mitigate to the extent possible the
effects of any significant Year 2000 noncompliance, such plans may not be
adequate and the cost of Year 2000 compliance may be higher than $250 million.
<PAGE>
PART I
Item 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK Carolina Telephone and Telegraph Company
Omitted under the provisions of General Instruction H.
<PAGE>
PART II.
Other Information
Item 1. Legal Proceedings
There were no reportable events during the quarter ended September 30,
1998.
Item 2. Changes in Securities
Omitted under the provisions of General Instruction H.
Item 3. Defaults Upon Senior Securities
Omitted under the provisions of General Instruction H.
Item 4. Submission of Matters to a Vote of Security Holders
Omitted under the provisions of General Instruction H.
Item 5. Other Information
CT&T's ratios of earnings to fixed charges were 11.93 for the 1998
third quarter versus 9.44 for the 1997 third quarter and 10.16 for the
1998 year-to-date period versus 9.68 for the same period a year ago.
The ratios were computed by dividing fixed charges into the sum of
earnings (after certain adjustments) and fixed charges. Earnings
include income before income taxes, less capitalized interest. Fixed
charges include interest on all debt (including amortization of debt
issuance costs) and the interest component of operating rents.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
(12) Computation of Ratio of Earnings to Fixed Charges
(27) Financial Data Schedule
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the quarter ended
September 30, 1998.
<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.
Carolina Telephone and Telegraph Company
-------------------------------------------
(Registrant)
By /s/ John I. Lehman
-------------------------------------------
John I. Lehman
Controller & Chief Accounting Officer
By /s/ Douglas B. Lynn
-------------------------------------------
Douglas B. Lynn
Assistant Vice President
Date: November 10, 1998
<PAGE>
EXHIBIT INDEX
EXHIBIT
NUMBER
(12) Computation of Ratio of Earnings to Fixed Charges
(27) Financial Data Schedule
<TABLE>
<CAPTION>
EXHIBIT 12
CAROLINA TELEPHONE AND TELEGRAPH COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Unaudited)
- -------------------------------------------- ---------------------------------- ----------------------------------
Quarter Ended Year-to-Date
September 30, September 30,
--- ------------- -- ------------- --- ------------- -- -------------
1998 1997 1998 1997
- -------------------------------------------- --- ------------- -- ------------- --- ------------- -- -------------
(in thousands)
Earnings
<S> <C> <C> <C> <C>
Income before income taxes $ 52,915 $ 51,681 $ 147,265 $ 154,223
Capitalized interest (35) 105 (64) (51)
- -------------------------------------------- --- ------------- -- ------------- --- ------------- -- -------------
Subtotal 52,880 51,786 147,201 154,172
- -------------------------------------------- --- ------------- -- ------------- --- ------------- -- -------------
Fixed charges
Interest charges 4,502 5,808 15,140 16,768
Interest factor of operating rents 337 331 922 994
- -------------------------------------------- --- ------------- -- ------------- --- ------------- -- -------------
Total fixed charges 4,839 6,139 16,062 17,762
- -------------------------------------------- --- ------------- -- ------------- --- ------------- -- -------------
Earnings, as adjusted $ 57,719 $ 57,925 $ 163,263 $ 171,934
--- ------------- -- ------------- --- ------------- -- -------------
Ratio of earnings to fixed charges 11.93 9.44 10.16 9.68
--- ------------- -- ------------- --- ------------- -- -------------
Note: These ratios were computed by dividing fixed charges into the sum of
earnings (after certain adjustments) and fixed charges. Earnings
include income before income taxes, less capitalized interest. Fixed
charges include interest on all debt (including amortization of debt
issuance costs) and the interest component of operating rents.
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> Dec-31-1998
<PERIOD-END> Sep-30-1998
<CASH> 272
<SECURITIES> 0
<RECEIVABLES> 164,745
<ALLOWANCES> 6,214
<INVENTORY> 16,562
<CURRENT-ASSETS> 186,617
<PP&E> 2,150,856
<DEPRECIATION> 1,230,666
<TOTAL-ASSETS> 1,232,181
<CURRENT-LIABILITIES> 264,731
<BONDS> 198,954
0
0
<COMMON> 72,530
<OTHER-SE> 497,133
<TOTAL-LIABILITY-AND-EQUITY> 1,232,181
<SALES> 0
<TOTAL-REVENUES> 674,793
<CGS> 0
<TOTAL-COSTS> 375,287
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 15,076
<INCOME-PRETAX> 147,265
<INCOME-TAX> 54,333
<INCOME-CONTINUING> 92,932
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 92,932
<EPS-PRIMARY> 0.00
<EPS-DILUTED> 0.00
</TABLE>
