FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Three Months Ended September 30, 1995
Commission File No 1-8012
GEICO CORPORATION
Delaware 52-1135801
(Jurisdiction of Incorporation) (IRS Employer Identification No.)
One GEICO Plaza, Washington, D.C. 20076
Registrant's Telephone No: (301) 986-3000
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
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
As of October 31,
1995
Common Stock, $1.00 par value 67,528,833
Page 1 of 10 pages
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FORM 10-Q - QUARTERLY REPORT
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GEICO CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
Investments: 1995 1994
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Fixed maturities available for sale, at
market (amortized cost $3,671,852,700
and $3,363,422,770) $ 3,742,269,035 $ 3,270,125,446
Equity securities available for sale,
at market (cost $510,519,982 and
$556,960,522) 914,976,582 782,708,006
Short-term investments 191,892,351 50,032,937
Total Investments 4,849,137,968 4,102,866,389
Cash 19,439,006 27,579,312
Loans receivable, net 12,018,642 59,448,297
Accrued investment income 60,394,105 67,254,744
Premiums receivable 276,522,601 238,652,876
Reinsurance receivables 124,121,844 127,189,085
Prepaid reinsurance premiums 10,373,592 10,361,216
Amounts receivable from sales of securities 51,164 2,022,214
Deferred policy acquisition costs 72,753,722 72,358,845
Federal income taxes - 98,974,942
Property and equipment, at cost less accumulated
depreciation of $120,191,092 and $113,612,108 138,480,306 141,741,242
Other assets 31,123,997 49,656,013
TOTAL ASSETS $ 5,594,416,947 $ 4,998,105,175
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Property and casualty loss reserves $ 1,840,803,350 $ 1,704,717,841
Loss adjustment expense reserves 331,794,593 307,606,072
Unearned premiums 817,341,550 747,342,502
Life benefit reserves and policyholders' funds 108,931,081 101,297,929
Debt:
Corporate and other 424,430,327 340,378,156
Finance company 8,800,000 51,000,000
Amounts payable on purchases of securities 16,153,639 8,407,963
Federal income taxes 19,818,504 -
Other liabilities 287,478,976 291,414,052
Total Liabilities 3,855,552,020 3,552,164,515
SHAREHOLDERS' EQUITY
Common Stock - $1 par value, 150,000,000
shares authorized, 71,668,009 and
71,565,359 issued, 67,522,133 and
68,291,463 outstanding 71,668,009 71,565,359
Paid-in surplus 174,943,908 169,083,940
Unrealized appreciation of investments 313,617,900 91,166,775
Retained earnings 1,454,447,741 1,330,021,435
Treasury Stock, at cost (4,145,876 and 3,273,896
shares of Common Stock) (212,815,323) (167,114,614)
Unearned Employee Stock Ownership Plan shares (62,997,308) (48,782,235)
Total Shareholders' Equity 1,738,864,927 1,445,940,660
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 5,594,416,947 $ 4,998,105,175
See Notes to Consolidated Financial Statements
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Page 2 of 10 pages<PAGE>
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<CAPTION>
GEICO CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Nine Months
Ended September 30, Ended September 30,
1995 1994 1995 1994
REVENUE
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Premiums $710,318,813 $629,596,043 $2,057,918,552 $1,822,392,728
Investment income, net of
expenses of $2,714,116 and
$7,770,812 in 1995 and
$2,437,335 and $7,126,117 in
1994 56,413,976 50,099,114 168,151,999 148,066,453
Realized gains on investments 4,092,407 1,758,198 4,293,921 12,337,735
Interest on loans receivable 262,728 2,556,992 3,357,749 7,774,539
Other revenue 3,379,795 3,719,628 10,943,337 10,967,634
Total Revenue 774,467,719 687,729,975 2,244,665,558 2,001,539,089
BENEFITS AND EXPENSES
Losses and loss adjustment
expenses 555,951,623 498,736,782 1,661,550,628 1,470,909,454
Life benefits and interest
on policyholders' funds 2,314,999 1,957,609 6,975,656 6,568,494
Policy acquisition expenses 53,720,032 48,125,677 158,004,279 148,616,244
Other operating expenses 63,447,574 59,726,744 169,945,098 171,171,313
Interest expense:
Corporate and other 9,471,564 5,788,632 24,800,752 18,336,858
Finance company 111,274 801,235 1,193,172 2,193,836
Total Benefits and Expenses 685,017,066 615,136,679 2,022,469,585 1,817,796,199
Net income before income
taxes 89,450,653 72,593,296 222,195,973 183,742,890
Federal income tax expense 20,764,709 13,937,979 43,501,494 31,519,844
Net income before cumulative
effect of change in
accounting principle 68,685,944 58,655,317 178,694,479 152,223,046
Cumulative effect of change in
accounting principle for
postemployment benefits,
net of tax - - - (1,051,329)
Net Income $ 68,685,944 $ 58,655,317 $ 178,694,479 $ 151,171,717
Earnings Per Share
Net income before cumulative
effect of change in
accounting principle $1.02 $ .84 $2.64 $2.16
Cumulative effect of change
in accounting principle - - - (.01)
Net Income $1.02 $ .84 $2.64 $2.15
Dividends Per Share $ .27 $ .25 $ .81 $ .75
See Notes to Consolidated Financial Statements
</TABLE>
Page 3 of 10 pages<PAGE>
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GEICO CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended September 30,
1995 1994
<S> <C> <C>
Operating Activities:
Net income $ 178,694,479 $ 151,171,717
Adjustments to reconcile net income to net
cash provided by operating activities:
Cumulative effect of change in accounting
principle for postemployment benefits,
net of tax - 1,051,329
Net premiums receivable (37,869,725) (29,848,902)
Deferred policy acquisition costs (394,877) 987,156
Reinsurance receivables and prepaid reinsurance
premiums 3,054,865 (2,357,068)
Loss, life benefit and loss adjustment
expense reserves 161,995,841 110,942,212
Unearned premiums 69,999,048 68,958,043
Federal income taxes (1,291,631) (6,990,987)
Realized gains (4,293,921) (12,337,735)
Provision for depreciation 19,650,165 16,592,523
Amortization of premiums, net of accrual of
discount, on investments 10,080,268 14,261,275
Other 16,511,370 51,378,406
Net cash provided by operating activities 416,135,882 363,807,969
Investing Activities:
Purchases of equity securities (111,005,251) (123,783,877)
Purchases of fixed maturities (816,879,022) (680,517,477)
Increase in payable on security purchases 7,745,676 11,947,773
Sales of fixed maturities 99,810,709 41,859,754
Maturities and redemptions of fixed maturities 410,587,315 425,057,290
Sales of equity securities 163,349,198 153,591,241
Net change in short-term investments (141,859,414) (54,812,177)
Change in receivable from security sales 1,971,050 (3,084,647)
Loans receivable sold or repaid 49,973,208 9,957,516
Proceeds from sale of subsidiary - 9,686,024
Purchase of property and equipment, net (18,422,434) (22,084,108)
Other 368,975 (229,601)
Net cash used by investing activities (354,359,990) (232,412,289)
Financing Activities:
Issuance of debt 99,768,000 -
Repayment of debt (750,000) (36,038,469)
Net change in short-term borrowings (72,200,000) (1,700,000)
Exercise of stock options 2,692,028 916,253
Purchase of Common Stock (Treasury) (47,092,727) (43,467,911)
Dividends paid to shareholders (54,972,374) (52,772,319)
Other 2,638,875 5,653,293
Net cash used by financing activities (69,916,198) (127,409,153)
Change in cash (8,140,306) 3,986,527
Cash at beginning of period 27,579,312 18,361,546
Cash at end of period $ 19,439,006 $ 22,348,073
See Notes to Consolidated Financial Statements
</TABLE>
Page 4 of 10 pages
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Basis of Presentation
The accompanying unaudited consolidated condensed financial statements have
been prepared in accordance with the instructions to Form 10-Q and,
therefore, do not include all information and footnotes necessary for a
fair presentation of financial position, results of operations and cash
flows in conformity with generally accepted accounting principles.
However, in the opinion of management, the financial statements reflect all
adjustments, consisting only of normal recurring adjustments, necessary for
a fair presentation of financial position, results of operations and cash
flows. The information has been prepared from the records of GEICO
Corporation (the Corporation) which are subject to audit at year-end by
independent public accountants. The results of operations for the nine
months ended September 30, 1995 are not necessarily indicative of such
results for the entire year.
Consolidation
The consolidated financial statements include the accounts of GEICO
Corporation and its subsidiaries.
Significant intercompany accounts and transactions have been eliminated.
Income Taxes
Federal income taxes in the statements of income are based on an estimated
annual effective tax rate which reflects exclusion of tax-exempt interest
income and the intercorporate dividends received deduction.
Postemployment Benefits
In the first quarter of 1994 the Corporation adopted Statement of Financial
Accounting Standards No. 112 "Employers' Accounting for Postemployment
Benefits." The cumulative effect of adopting this statement at January 1,
1994 was a charge of $1.1 million, net of tax, which was included in the
statements of income as a change in accounting principle.
Common Stock Repurchases
During the first nine months of 1995 the Corporation repurchased a net
871,980 shares of its Common Stock for $45.3 million. At September 30,
1995 there were 6,575,619 shares remaining under the current repurchase
authorization. However, pursuant to the terms of the merger agreement with
Berkshire Hathaway dated August 25, 1995, the Corporation shall not
repurchase any of its Common Stock.
Earnings Per Share
The computation of earnings per share is based on the weighted average
number of common shares assumed outstanding of 67,310,889 and 70,106,963
for the three months ended September 30, 1995 and 1994, respectively, and
67,706,322 and 70,486,722 for the nine months ended September 30, 1995 and
1994, respectively.
Merger Agreement
On August 25, 1995 the Board of Directors of GEICO Corporation approved a
merger agreement under which Berkshire Hathaway Inc. would acquire the
remaining shares of GEICO Corporation at $70 per share. The merger is
subject to approval of state insurance regulators and the approval of the
holders of 80% of GEICO Corporation's stock. Since Berkshire Hathaway owns
about 51% of GEICO Corporation's outstanding shares, approximately 59% of
the shares not owned by Berkshire Hathaway must also vote in favor of the
merger for it to be approved. The Corporation anticipates that the closing
of the merger will occur in early January, 1996.
Page 5 of 10 pages
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of Operations
Results of Operations
Consolidated premiums were $710,318,813 for the third quarter of 1995, up
12.8 percent from $629,596,043 in 1994. For the nine months ended
September 30, earned premiums were $2,057,918,552 in 1995, up 12.9 percent
from $1,822,392,728 in 1994, reflecting continued growth in voluntary auto
lines and modest rate increases. The number of voluntary automobile
policies in force grew 7.9 percent during the twelve month period ending
September 30, 1995. Total voluntary policies in force (all lines) grew 4.3
percent in the same time period as homeowners policies have declined.
Policy growth in the standard and nonstandard auto lines was 27.9 percent
as efforts have been expanded to offer a rate quote to potential customers
who do not meet GEICO/GEICO General preferred-risk underwriting guidelines.
These lines currently have a modest premium base, but provide an
opportunity for significant growth. New business homeowner insurance sales
are less in 1995 than 1994.
On April 4, 1995 GEICO announced an agreement with Aetna Life and Casualty
(Aetna) to phase out of GEICO's homeowners business over the next three
years. On July 24, 1995 GEICO began offering new homeowners customers
Aetna policies. The great majority of GEICO's existing homeowners customers
will be offered renewal policies in Aetna as their policies begin to expire
after January 1, 1996. GEICO will act as the servicing agent for these
policies. The agreement with Aetna should have little impact on 1995
financial results.
Pre-tax net investment income increased 12.6 percent to $56,413,976 for the
third quarter of 1995 from $50,099,114 in the third quarter of 1994. For
the nine months ended September 30, pre-tax net investment income was
$168,151,999 in 1995, up 13.6 percent from $148,066,453 in 1994. The
increase reflects additional funds from operations available for
investment. After-tax net investment income for the nine months increased
12.3 percent to $143.1 million from $127.4 million.
Realized gains on investments were $4,092,407 for the third quarter of 1995
compared to realized gains of $1,758,198 in the third quarter of 1994. For
the nine months ended September 30, realized gains on investments were
$4,293,921 in 1995 and $12,337,735 in 1994. Realized gains are primarily
from the sale of equity securities. Such gains are a result of financial
market conditions and can therefore fluctuate widely from period to period.
Interest on loans receivable decreased 56.8 percent to $3,357,749 for the
nine month period ended September 30, 1995 from the comparable prior year
period as Government Employees Financial Corporation (GEFCO), our finance
subsidiary, has reduced its loans receivable. In April 1995, GEFCO sold
$38 million of its remaining receivables and other assets and used the
proceeds to reduce its short-term debt. At September 30, 1995 GEFCO had
approximately $21 million of remaining assets.
Losses and loss adjustment expenses incurred increased 11.5 percent and
13.0 percent to $555,951,623 and $1,661,550,628 for the three and nine
months ended September 30, 1995 over the comparable prior year periods.
Catastrophe losses in the third quarter of 1995 and 1994 were approximately
$4 million in each quarter. Year-to-date catastrophe losses approximate
$41 million compared to $24 million in the first nine months of last year.
The major losses in 1995 were from second quarter hailstorms in Texas and
flooding in New Orleans. The first quarter of 1994 was adversely impacted
by severe winter weather which resulted in a significant increase in
automobile claims frequency due to poor driving conditions and a high level
of homeowners catastrophe freezing losses.
In response to concerns of the insurance industry and various consumer
groups, the Florida Hurricane Catastrophe Fund became effective June 1,
1994. The second contract year of the Fund began June 1, 1995. In return
for an annual premium, 75% of homeowners losses in excess of $29 million
per occurrence are covered subject to a constraint of overall money
available to the Fund. The Corporation's insurance subsidiaries currently
have no other catastrophe reinsurance effective in any other states.
Page 6 of 10 pages
The Corporation's insurance subsidiaries reinsure excess risks on any
single loss. GEICO's principal reinsurer for this coverage is General
Reinsurance Corporation which is rated A++ (Superior) by A. M. Best. GEICO
has also reinsured a significant portion of its commercial umbrella
liability business which was written from 1981 to 1984. The largest
anticipated amount recoverable for this coverage is from Constitution
Reinsurance Corporation which is rated A+ (Superior) by A. M. Best.
The statutory ratios of losses and loss adjustment expenses (LAE) incurred
to premiums earned, underwriting expenses to written premiums, and
underwriting ratios for the Corporation's property/casualty subsidiaries
are shown below.
Three Months Nine Months
Ended September 30, Ended September 30,
1995 1994 1995 1994
Loss ratio 79.6% 80.7% 82.3% 82.0%
Expense ratio 13.4% 14.3% 13.2% 14.3%
Underwriting ratio 93.0% 95.0% 95.5% 96.3%
The Corporation's reserves for losses and loss adjustment expenses include
amounts for environmental and product liability claims on policies written
by GEICO from 1981 to 1984 and by Resolute Reinsurance Company from 1982
to 1987. The Corporation believes that the ultimate resolution of its
environmental and product liability claims will not have a material impact
on the Corporation's financial position and results of operations.
Policy acquisition expenses increased 6.3 percent to $158,004,279 for the
first nine months of 1995 compared to $148,616,244 in 1994 and reflects a
reduction in the general expense ratio in 1995. Other operating expenses
decreased .7 percent to $169,945,098 from $171,171,313. Other operating
expenses for the first nine months of 1995 include a negative $2.7 million
of incentive compensation expense related to the underperformance of the
Corporation's common stock portfolio compared to the S&P 500. This expense
was $8.7 million for overperformance during the first nine months of 1994.
Total interest expense for the first nine months of 1995 increased to
$25,993,924 from $20,530,694 in 1994. The increase reflects the April 1995
issuance of $100 million of 7.5% Notes due in 2005, interest on deferred
compensation which is linked to changes in the Corporation's stock price,
and interest on short-term borrowings partially offset by the repayment of
mortgage loans in the third quarter of 1994.
Net income before income taxes was $89,450,653 and $222,195,973 in the
three and nine months ended September 30, 1995 compared to $72,593,296 and
$183,742,890 for the comparable periods in 1994. These three and nine
month results reflect increases in both underwriting gain from insurance
operations and investment income. For the first nine months of 1995 income
tax expense increased to $43,501,494 from $31,519,844 in 1994 reflecting
the increase in pretax income.
In the first quarter of 1994 the Corporation adopted Statement of Financial
Accounting Standards No. 112 "Employers' Accounting for Postemployment
Benefits." The cumulative effect of adopting this statement at January 1,
1994 was a charge of $1.1 million, net of tax, which was included in the
statements of income as a change in accounting principle. This statement
will not have a significant impact on future operating expenses.
Net income was $68,685,944 for the three months ended September 30, 1995,
an increase of 17.1 percent from the comparable 1994 period. Net income
was $178,694,479 for the nine months ended September 30, 1995, an increase
of 18.2 percent over 1994 year to date results. Net income per share
increased 21.4 percent to $1.02 for the three month period and increased
22.8 percent to $2.64 for the nine months reflecting a decrease in the
number of shares outstanding. The cumulative effect of the change in
accounting principle reduced net income per share by $.01 in 1994.
Page 7 of 10 pages
The weighted average number of shares outstanding decreased to 67,706,322
for the nine months ended September 30, 1995 compared to 70,486,722 a year
ago due to Treasury Stock purchases.
The unrealized appreciation of investments, which is reflected in
shareholders' equity but not in net income, increased $222.5 million to
$313.6 million at September 30, 1995 compared to $91.2 million at December
31, 1994 reflecting increases in the market value of both fixed maturities
and equity securities during the nine months. The unrealized appreciation
related to fixed maturities increased $106.4 million during the nine month
period as interest rates have declined resulting in unrealized appreciation
of $45.8 million as of September 30, 1995. The unrealized appreciation on
equity securities increased $116.1 million to $267.8 million.
Capital Structure and Liquidity
During the first nine months of 1995 the Corporation repurchased a net
871,980 shares of its Common Stock for $45.3 million. On May 9, 1995 the
Board of Directors increased the Common Stock repurchase authorization to
7 million shares, including the 3.2 million shares remaining under the
prior authorization. However, pursuant to the terms of the merger
agreement with Berkshire Hathaway dated August 25, 1995, the Corporation
shall not repurchase any shares of its Common Stock.
Book value per share at September 30, 1995 was $25.75 based upon
shareholders' equity of $1,738,864,927 and 67,522,133 outstanding shares
of Common Stock compared to $21.17 at December 31, 1994 based upon
shareholders' equity of $1,445,940,660 and 68,291,463 outstanding shares.
The increase reflects the unrealized appreciation of investments during the
year partially offset by repurchases of shares at a cost in excess of book
value per share and an increase in unearned ESOP shares purchased with $15
million of additional ESOP debt.
Cash flow from operations during the first nine months of 1995 was $416.1
million compared to $363.8 million for the first nine months of 1994.
Investing activities include the receipt of $50.0 million from the sale and
collection of GEFCO's loans receivable, and financing activities include
the repayment of $42.2 million of GEFCO's short-term borrowings with the
proceeds. On April 24, GEICO Corporation issued $100 million of 7.5% Notes
due 2005. The Corporation used about half of the net proceeds to repay
short-term debt and the remainder was available for investment in
marketable securities and general corporate purposes, including repurchases
of shares. Investing activities in the first nine months of 1994 included
a net $9.7 million received from the sale of Southern Heritage Insurance
Company, which was sold effective December 31, 1993. Financing activities
in the first nine months of 1994 included the prepayment of $34.6 million
of collateralized debt of the Corporation's real estate subsidiaries in the
third quarter.
Merger Agreement
On August 25, 1995 the Board of Directors of GEICO Corporation approved a
merger agreement under which Berkshire Hathaway Inc. would acquire all of
the GEICO Corporation shares that it does not own at $70 per share. The
merger is subject to approval of state insurance regulators and the
approval of the holders of 80% of GEICO Corporation's stock. Since
Berkshire Hathaway owns about 51% of GEICO Corporation's outstanding
shares, approximately 59% of the shares not owned by Berkshire Hathaway
must also vote in favor of the merger for it to be approved. The
Corporation anticipates that the closing of the merger will occur in early
January, 1996.
Page 8 of 10 pages
State Rate Regulation
Each of the Corporation's insurance company subsidiaries is subject to
regulation and supervision of its insurance businesses in each of the
jurisdictions in which it does business. In general, such regulation is
for the protection of policyholders rather than shareholders. Legislation
has been introduced in recent sessions of Congress proposing modification
or repeal of the McCarran-Ferguson Act which reaffirms the proposition that
it is the responsibility of state governments to regulate the insurance
industry and provides a limited exemption to the "business of insurance"
from federal anti-trust laws. Whether any changes to the current statute
will be made, and the effect of such changes, if any, cannot be determined.
The Congress and certain state legislatures are also considering the
effects of the use of sex, age, marital status, rating territories and
other traditional rating criteria as a basis for rating classification;
certain of such criteria no longer can be used in some states, and have
been and are being challenged in the courts of other states.
Page 9 of 10 pages
<PAGE>
GEICO CORPORATION
PART II. OTHER INFORMATION
Item 5. Other Events
(a) None.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
(1) None.
(b) Reports on Form 8-K
GEICO Corporation filed a Report on Form 8-K on August 25, 1995
pursuant to Item 5 thereof.
SIGNATURE
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.
GEICO
Corporation
Date: November 14, 1995 By:
Thomas M. Wells
Group Vice President and
Controller
(Principal Accounting Officer)
Date: November 14, 1995 By:
W. Alvon Sparks, Jr.
Executive Vice President and
Chief Financial Officer
(Principal Financial Officer)
Page 10 of 10 pages
<TABLE> <S> <C>
<ARTICLE> 7
<LEGEND>
This schedule contains summary financial information extracted from SEC
Form 10-Q and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<DEBT-HELD-FOR-SALE> 3742269
<DEBT-CARRYING-VALUE> 0
<DEBT-MARKET-VALUE> 0
<EQUITIES> 914977
<MORTGAGE> 0
<REAL-ESTATE> 0
<TOTAL-INVEST> 4849138
<CASH> 19439
<RECOVER-REINSURE> 124122
<DEFERRED-ACQUISITION> 72754
<TOTAL-ASSETS> 5594417
<POLICY-LOSSES> 2211450
<UNEARNED-PREMIUMS> 817342
<POLICY-OTHER> 0
<POLICY-HOLDER-FUNDS> 70079
<NOTES-PAYABLE> 433230
<COMMON> 71668
0
0
<OTHER-SE> 1667197
<TOTAL-LIABILITY-AND-EQUITY> 5594417
2057919
<INVESTMENT-INCOME> 168152
<INVESTMENT-GAINS> 4294
<OTHER-INCOME> 14301
<BENEFITS> 1664970
<UNDERWRITING-AMORTIZATION> 158004
<UNDERWRITING-OTHER> 169945
<INCOME-PRETAX> 222196
<INCOME-TAX> 43501
<INCOME-CONTINUING> 178694
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 178694
<EPS-PRIMARY> 2.64
<EPS-DILUTED> 2.64
<RESERVE-OPEN> 0
<PROVISION-CURRENT> 0
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 0
<PAYMENTS-PRIOR> 0
<RESERVE-CLOSE> 0
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</TABLE>
