UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 Or 15(d) of the Securities Exchange Act
of 1934
For the quarterly period ended June 30, 1998
Commission file number 0-9165
STRYKER CORPORATION
(Exact name of registrant as specified in its charter)
Michigan 38-1239739
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
P.O. Box 4085, Kalamazoo, Michigan 49003-4085
(Address of principal executive offices) (Zip Code)
(616) 385-2600
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities and 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:
96,329,771 shares of Common Stock, $.10 par value, as of July 31, 1998.
PART I. - FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
STRYKER CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Amounts in thousands, except per share amounts)
June 30 December 31
1998 1997
----------- -----------
ASSETS
Current Assets
Cash and cash equivalents $ 55,364 $ 154,027
Marketable debt securities 271,473 197,041
Accounts receivable, less allowance
of $9,700 (1997 - $11,700) 193,455 176,214
Inventories 157,944 136,246
Deferred income taxes 77,824 78,896
Prepaid expenses and other current assets 16,755 14,184
--------- ---------
Total Current Assets 772,815 756,608
Property, Plant and Equipment, less allowance
for depreciation of $148,708 (1997 - $136,582) 170,769 163,867
Other Assets 71,957 64,600
--------- ---------
TOTAL ASSETS $1,015,541 $ 985,075
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 56,344 $ 55,034
Accrued compensation 35,389 43,927
Income taxes 38,517 36,971
Accrued expenses and other liabilities 69,866 93,452
Current maturities of long-term debt 70,020 73,627
--------- ---------
Total Current Liabilities 270,136 303,011
Long Term Debt, excluding current maturities 4,369 4,449
Other Liabilities 28,674 29,168
Minority Interest 34,099 35,672
Stockholders' Equity
Common stock, $.10 par value:
Authorized - 150,000 shares
Outstanding - 96,305 shares (1997 - 96,059) 9,631 9,606
Additional paid-in capital 6,712 18
Retained earnings 684,199 612,939
Accumulated other comprehensive income (22,279) (9,788)
--------- ---------
Total Stockholders' Equity 678,263 612,775
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,015,541 $ 985,075
========= =========
See accompanying notes to condensed consolidated financial statements.
STRYKER CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(Amounts in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30 June 30
1998 1997 1998 1997
-------- -------- -------- --------
Net sales $267,273 $248,036 $520,861 $487,572
Cost of sales 111,457 100,532 212,870 198,217
-------- -------- -------- --------
Gross profit 155,816 147,504 307,991 289,355
Operating expenses:
Research, development and engineering 15,420 14,361 28,450 28,059
Selling, general and administrative 89,428 88,088 176,322 172,101
-------- -------- -------- --------
104,848 102,449 204,772 200,160
-------- -------- -------- --------
Operating income 50,968 45,055 103,219 89,195
Other income 3,262 1,643 6,411 5,343
-------- -------- -------- --------
Earnings before income taxes 54,230 46,698 109,630 94,538
Income taxes 18,980 17,318 38,370 35,138
-------- -------- -------- --------
Net earnings $ 35,250 $ 29,380 $ 71,260 $ 59,400
======== ======== ======== ========
Net earnings per share of common
stock:
Basic $.37 $.31 $.74 $.62
==== ==== ==== ====
Diluted $.36 $.30 $.73 $.61
==== ==== ==== ====
Average outstanding shares for the
period:
Basic 96,279 96,004 96,197 96,431
Diluted 98,176 97,806 98,117 98,140
See accompanying notes to condensed consolidated financial statements.
STRYKER CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
(Unaudited)
(Amounts in thousands, except per share amounts)
Accumulated
Additional Other
Common Paid-In Retained Comprehensive
Stock Capital Earnings Income Total
------- ---------- -------- ---------- -------
Balance at
January 1, 1998 $9,606 $18 $612,939 ($9,788) $612,775
-------
Comprehensive income:
Net earnings 71,260 71,260
Net unrealized (losses)
on securities (559) (559)
Foreign currency
translation adjustments (11,932) (11,932)
-------
Comprehensive income 58,769
-------
Sales of 246 shares of
common stock under
stock option and
benefit plans,
including $3,043
income tax benefit 25 6,694 6,719
------- ---------- -------- ---------- -------
Balance at
June 30, 1998 $9,631 $6,712 $684,199 ($22,279) $678,263
======= ========== ======== ========== =======
See accompanying notes to condensed consolidated financial statements.
In 1997 the Company declared a cash dividend of eleven cents per share to
shareholders of record on December 31, 1997, payable on January 30, 1998. No
cash dividends have been declared during 1998.
STRYKER CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(Amounts in thousands)
Six Months Ended
June 30
1998 1997
-------- --------
OPERATING ACTIVITIES
Net earnings $ 71,260 $ 59,400
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation 13,238 12,865
Amortization 2,643 4,579
Minority interest (841) 430
Changes in operating assets and liabilities,
net of effects of business acquisitions:
Increase in accounts receivable (17,912) (19,686)
Increase in inventories (21,536) (9,730)
Decrease in accounts payable (117) (10,340)
Decrease in accrued expenses (12,976) (2,941)
Increase (decrease) in income taxes 657 (25,487)
Other (6,897) (5,186)
-------- --------
Net cash provided by operating activities 27,519 3,904
INVESTING AND FINANCING ACTIVITIES
Purchases of property, plant and equipment (19,432) (15,599)
Sales (purchases) of marketable securities (74,432) 68,845
Business acquisitions (25,393) (24,984)
Payments on borrowings (465) (1,278)
Dividends paid (10,580) (9,679)
Proceeds from exercise of stock options 5,211 3,597
Repurchases of common stock 0 (25,576)
Other (419) 5,525
-------- --------
Net cash used in investing
and financing activities (125,510) 851
Effect of exchange rate changes on
cash and cash equivalents (672) (738)
-------- --------
Increase (decrease) in cash and cash equivalents ($98,663) $ 4,017
========= ========
See accompanying notes to condensed consolidated financial statements.
STRYKER CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 1998
(Unaudited)
Note 1. BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements
include all adjustments, consisting of normal recurring accruals, which the
Company considers necessary for a fair presentation of the results of
operations for the periods shown. The 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 consolidated
financial position, results of operations and cash flows in conformity with
generally accepted accounting principles. The results of operations for any
interim period are not necessarily indicative of the results to be expected for
the full year. For further information, refer to the consolidated financial
statements and footnotes thereto included in the Company's annual report on
Form 10-K for the year ended December 31, 1997.
As of January 1, 1998 the Company adopted Financial Accounting Standards
Board (FASB) Statement No. 130, "Reporting Comprehensive Income". Statement
No. 130 establishes rules for the reporting of comprehensive income and its
components; however, the adoption of this statement had no impact on the
Company's net earnings or shareholders' equity. Statement No. 130 requires
unrealized gains or losses on the Company's available-for-sale securities and
foreign currency translation adjustments, which, prior to adoption, were
reported separately in shareholders' equity, to be aggregated and disclosed as
accumulated other comprehensive income, a component of shareholders' equity.
Management has elected to disclose total comprehensive income as a subtotal in
the Condensed Consolidated Statement of Stockholders' Equity. Prior year
financial statements have been reclassed to conform to the requirements of
Statement No. 130. Other comprehensive income for the six months ended June
30, 1997 was $52,244. Other comprehensive income for the three months ended
June 30, 1998 and 1997 was $27,849 and $27,889, respectively.
Note 2. INVENTORIES
Inventories are as follows (in thousands):
June 30 December 31
1998 1997
--------- ---------
Finished goods $ 124,687 $ 103,744
Work-in-process 12,696 10,661
Raw material 28,280 29,560
--------- ---------
FIFO Cost 165,663 143,965
Less LIFO reserve 7,719 7,719
--------- ---------
$ 157,944 $ 136,246
========= =========
FIFO cost approximates replacement cost.
Note 3. BUSINESS ACQUISITIONS
During the first six months of 1998, the Company's subsidiary,
Physiotherapy Associates, Inc., purchased certain physical therapy clinic
operations at an aggregate cost of $1.8 million. In addition, the Company
purchased two domestic distributors of its orthopaedic implants at a cost of
$15.0 million and a Canadian manufacturer of hospital beds, at a cost of $8.1
million. All of the above acquisitions were accounted for by the purchase
method. Any intangible assets acquired in the above acquisitions are being
amortized over periods ranging from five to fifteen years. Pro forma
consolidated operating results including the acquisitions would not differ
significantly from reported results.
Note 4. SUBSEQUENT EVENT
On August 14, 1998, the Company announced it had entered into a definitive
agreement to acquire Howmedica, the orthopaedic division of Pfizer, Inc., for
$1.9 billion in cash. The transaction is expected to be financed with a
combination of cash and debt, and is expected to be completed in the fourth
quarter of 1998 subject to regulatory approvals.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Results Of Operations
_____________________
The table below sets forth domestic/international and product line sales
information:
Three Months Ended Six Months Ended
June 30 % June 30 %
1998 1997 Chg 1998 1997 Chg
-------- -------- --- -------- -------- ---
Domestic/International
Sales
Domestic $179,624 $157,075 14 $350,776 $306,667 14
International 87,649 90,961 (4) 170,085 180,905 (6)
-------- -------- -------- --------
Total net sales $267,273 $248,036 8 $520,861 $487,572 7
======== ======== ======== ========
Product Line Sales
Stryker Surgical $201,215 $188,342 7 $394,767 $366,961 8
Stryker Medical 58,405 52,189 12 109,755 103,526 6
Distributed Products 7,653 7,505 2 16,339 17,085 (4)
-------- -------- -------- --------
Total net sales $267,273 $248,036 8 $520,861 $487,572 7
======== ======== ======== ========
For the six months ended June 30, 1998, Stryker Corporation's net sales
increased 7% compared to the same period in 1997. Increased unit volume
generated a 7% sales increase. Net sales also increased 2% from business
acquisitions and 1% from the acquisition of certain portions of the Osteonics'
domestic distribution network and the resulting direct sales. These increases
were partially offset by a 2% decrease in sales from unfavorable foreign
currency comparisons and a combined 1% decrease from a decline in selling
prices and divested businesses. For the second quarter, net sales increased 8%
when compared to the second quarter of 1997. Increased unit volume generated a
9% sales increase. Net sales also increased 2% from business acquisitions and
1% from the acquisition of certain portions of the Osteonics' domestic
distribution network and the resulting direct sales. These increases were
partially offset by a 3% decrease in sales from unfavorable foreign currency
comparisons and a combined 1% decrease from a decline in selling prices and
divested businesses.
The Company's domestic sales increased 14% in the second quarter and the
first half of 1998 compared to 1997. The domestic sales increase results from
strong shipments of endoscopic equipment, powered surgical instruments and
orthopaedic implants and increased revenue from physical therapy services.
International sales decreased 4% in the second quarter and 6% in the first half
of 1998 when compared to 1997 as unfavorable foreign currency comparisons and
lower shipments in Asia more than offset higher shipments in Europe and other
international markets. Unfavorable foreign currency comparisons lowered the
dollar value of international sales by $7.4 million, or 8%, for the second
quarter and $12.2 million, or 7%, for the first half.
Worldwide sales of Stryker Surgical products (principally orthopaedic
products) increased 7% in the second quarter and 8% in the first half. The
sales gains resulted from higher shipments of endoscopic equipment, powered
surgical instruments and orthopaedic implants, partially offset by the lower
dollar translation of foreign currency sales. Worldwide sales of Stryker
Medical products (principally stretchers/beds and physical therapy services)
increased 12% in the second quarter and 6% in the first half resulting from
increased physical therapy revenues and higher shipments of hospital beds and
stretchers. Sales of distributed products, which are sourced from other
companies principally for sale in Japan, increased 2% in the second quarter and
declined 4% in the first half.
Cost of sales for the first six months of 1998 represented 40.9% of sales
compared to 40.7% in the same period of 1997. In the second quarter, the cost
of sales percentage increased to 41.7% from 40.5% in the second quarter of
1997. Increasing cost of sales is the strength of the U.S. dollar versus
foreign currencies, which has increased the cost of U.S. dollar based purchases
for international operations. Research, development and engineering (R,D&E)
expense increased 1.4% for the first six months of 1998, and represented 5.5%
of sales in 1998 compared to 5.8% in the same period of 1997. In the second
quarter, these expenses increased 7.4%, and were 5.8% of sales in 1998 and
1997. The Company's R,D&E spending represents the continued development of the
OP-1 bone growth device at Stryker Biotech and the Company-wide focus on new
product development. The Company's commitment to product development has
resulted in several new product introductions in the first half of 1998
including the Quantum 5000 lightsource, the TPS Reciprocating Saw, the
InterPulse System, the First Care Ultra bed and the international introduction
of the Scorpio Knee system. Selling, general and administrative (S,G&A)
expenses increased 2.5% in the first six months and 1.5% in the second quarter
of 1998 compared to the same periods of 1997. These costs decreased to 33.9%
of sales in the first six months of 1998 compared to 35.3% of sales in the same
period of 1997. In the second quarter, S,G&A costs represented 33.5% of sales
compared to 35.5% in the same period of 1997. The increase in S,G,&A costs is
principally a result of increased selling expenses from larger sales forces and
an increase in sales. Other income increased $1.1 million, or 20.0%, for the
first six months and $1.6 million, or 98.5%, in the second quarter of 1998
compared to the same periods of 1997. The increase in other income in the first
half and second quarter is due to increased interest income attributable to
higher levels of invested cash and lower interest expense on the Company's yen
denominated debt partially off-set by foreign currency transaction losses.
The effective tax rate decreased to 35.0% for the first six months of 1998
compared to 37.2% in the same period of 1997 as a result of a more favorable
mix of operating results among tax jurisdictions, principally Japan, and tax-
free interest on short-term investments. For the first six months of 1998,
earnings before income taxes increased 16.0% and net earnings increased 20.0%
compared to the first six months of 1997. Earnings before income taxes
increased 16.1% and net earnings increased 20.0% in the second quarter of 1998
when compared to 1997.
Liquidity and Capital Resources
_______________________________
Stryker's financial position at June 30, 1998 remained strong with cash
and marketable securities of $326.8 million and working capital of $502.7
million. Accounts receivable at June 30, 1998 increased 10% from
December 31, 1997 as a result of increased sales and a 2-day increase in days
sales outstanding from 62 days at December 31, 1997 to 64 days at June 30,
1998. Inventories at June 30, 1998 increased 16% from December 31, 1997 and
days in inventory increased 7 days to 134 days from 127 days at
December 31, 1997.
The Company provided $27.5 million of cash from operations in the first
six months of 1998 compared to cash provided of $3.9 million in the same period
of 1997. The lower level of cash provided by operations in 1997 is primarily
due to first quarter payments in 1997 of attorney fees and taxes totaling $37.9
million relating to the patent judgement received in the fourth quarter of
1996. Excluding those payments, cash provided from operations from the
adjusted 1997 amount in the first half of 1997 would be $41.8 million. The
decrease in cash from operations is due principally to higher inventory levels
and decreases in accrued expenses. In the first half, $25.4 million of cash
was used for acquisitions, $15.0 million of which related to the purchase of
two previous domestic implant distributors. Cash and marketable securities of
$326.8 million and anticipated future cash flows from operations are expected
to be sufficient to fund future operating and capital requirements. The
Company also has unsecured lines of credit with banks totaling $53.3 million,
none of which was utilized at June 30, 1998.
On August 14, 1998, the Company announced it had entered into a definitive
agreement to acquire Howmedica, the orthopaedic division of Pfizer, Inc., for
$1.9 billion in cash. The transaction is expected to be financed with a
combination of cash and debt, and is expected to be completed in the fourth
quarter of 1998.
The information contained in this report includes forward-looking
statements within the meaning of the federal securities laws that are subject
to risks and uncertainties. Factors that could cause the Company's actual
results and financial condition to differ from the Company's expectations
include, but are not limited to: a change in economic conditions that adversely
affects the level of demand for the Company's products; expected cost savings
from the Howmedica acquisition may not be fully realized or realized within the
expected time frame; the actual charges incurred in connection with the
acquisition could be higher or lower than anticipated; changes in foreign
exchange markets; and difficulties related to regulatory requirements
attendant to consummation of the Howmedica acquisition could arise. All
forward-looking statements contained in this report are qualified in their
entirety by this cautionary statement.
PART II - OTHER INFORMATION
ITEM 5. OTHER INFORMATION
Set forth below is a text of the press release issued by the Company on
Friday, August 14, 1998.
KALAMAZOO, Mich., August 14, 1998--Stryker Corporation (NYSE:
SYK), a leading manufacturer of orthopaedic, surgical and medical
products, announced today that it has entered into a definitive
agreement to acquire Howmedica, the orthopaedic division of
Pfizer Inc (NYSE: PFE), for $1.9 billion in cash.
The transaction will create one of the world's leading
manufacturers of innovative orthopaedic products including
implants for reconstructing hips, knees and shoulders damaged by
disease or accidents, trauma products and specialty surgical
instruments.
"The acquisition of Howmedica is a unique opportunity to
enhance Stryker's long term competitive position, almost doubling
our size and ensuring that Stryker will continue as a vital force
in the growing $10 billion global orthopaedics market well into
the next century," said John W. Brown, Chairman, President and
CEO of Stryker.
Noting the consolidation trend among hospitals and medical
buying groups, Brown continued: "Howmedica brings an outstanding
slate of complementary products, talented employees and one of
the premier brands in the marketplace, all of which will enhance
our ability to meet the needs of our customers. It also adds
important scale to our operations, offers substantial cost and
distribution synergies, and greatly enhances our international
presence-especially in Europe and Japan."
Brown added: "Stryker has continually set high goals for
itself since its founding and, in doing so, has created a proven
track record of delivering innovative products to its customers
and consistent, superior earnings growth for shareholders. As
the world's population ages and the incidence of joint disease,
fractures and trauma grows in parallel, we believe that--with
this strategic move--we are acquiring an outstanding asset at an
attractive price that will allow Stryker to excel in today's
highly competitive global marketplace."
Through its Osteonics Division, Stryker is currently the
world's fifth largest manufacturer of orthopaedic implants.
Stryker had total 1997 net sales of over $980 million, of which
$740 million was orthopaedic surgical products. Howmedica--
currently the world's third largest manufacturer of
reconstructive devices including hip, knee and shoulder implants-
-also manufactures bone cement, trauma products for internal and
external fracture fixation, implantable devices used in oral,
facial and skull surgery, and specialty instruments. It had 1997
sales of approximately $820 million. Following the acquisition,
Stryker will hold approximately 15 percent of the worldwide
orthopaedic market.
The transaction is expected to be financed with a combination
of cash and debt, and has been approved by the Boards of Stryker
and Pfizer. It is expected to be completed in the fourth quarter
of 1998, subject to clearance under the Hart-Scott-Rodino Anti-
Trust Improvements Act and foreign regulations and other
customary conditions.
"This is an extraordinarily good strategic fit for Stryker
and the transaction should be accretive to net earnings beginning
in 2000," said David J. Simpson, Vice President, Chief Financial
Officer and Secretary of Stryker. "We expect to take a pre-tax
charge in the range of $400 million in the fourth quarter 1998 to
write-off in-process R&D and acquisition related expenses.
Goodwill is anticipated to be in the range of $1 billion and is
expected to be amortized over 30 years."
Concluded Brown: "This is a bold move for us, and one that we
believe will position us to continue to deliver value for our
shareholders long term. Post acquisition, our cash flow will be
significant and we do not currently anticipate the need for any
divestitures or equity issuance in connection with this
transaction."
Goldman, Sachs & Co. served as exclusive financial advisor to
Stryker and provided a fairness opinion to Stryker's Board.
Goldman Sachs Credit Partners L.P. and Bank of America have
provided a commitment for a $1.9 billion credit facility to
finance the acquisition.
Stryker Corporation develops, manufactures and markets
specialty surgical and medical products, including orthopaedic
implants, powered surgical instruments, endoscopic systems,
patient care and handling equipment for the global market and
provides outpatient physical therapy services in the United
States.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
The exhibits listed below are submitted as a separate section of
this report following the signature page:
Exhibit 11 - Statement Re: Computation of Earnings per Share
of Common Stock
Exhibit 27 - Financial Data Schedule (included in EDGAR
filing only)
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the quarter for which
this report is filed.
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.
STRYKER CORPORATION
(Registrant)
August 14, 1998 JOHN W. BROWN
_______________ _________________________________________
Date John W. Brown, Chairman, President
and Chief Executive Officer
(Principal Executive Officer)
August 14, 1998 DAVID J. SIMPSON
_______________ _________________________________________
Date David J. Simpson, Vice President,
Chief Financial Officer and Secretary
(Principal Financial Officer)
Exhibit 11
STRYKER CORPORATION AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE OF COMMON STOCK
June 30, 1998
Three Months Ended Six Months Ended
June 30 June 30
1998 1997 1998 1997
---------- ---------- ---------- ----------
Basic:
Average number of shares
outstanding 96,279,000 96,004,000 96,197,000 96,431,000
---------- ---------- ---------- ----------
Net earnings $35,250,000 $29,380,000 $71,260,000 $59,400,000
========== ========== ========== ==========
Basic net earnings per
share of common stock $.37 $.31 $.74 $.62
==== ==== ==== ====
Diluted:
Average number of shares
outstanding 96,279,000 96,004,000 96,197,000 96,431,000
Net effect of dilutive
stock options, based on
the treasury stock
method 1,897,000 1,802,000 1,920,000 1,709,000
using average market
price
---------- ---------- ---------- ----------
Total diluted shares 98,176,000 97,806,000 98,117,000 98,140,000
========== ========== ========== ==========
Diluted net earnings per
share of common stock $.36 $.30 $.73 $.61
==== ==== ==== ====
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 55,364
<SECURITIES> 271,473
<RECEIVABLES> 193,455
<ALLOWANCES> 9,700
<INVENTORY> 157,944
<CURRENT-ASSETS> 772,815
<PP&E> 170,769
<DEPRECIATION> 148,708
<TOTAL-ASSETS> 1,015,541
<CURRENT-LIABILITIES> 270,136
<BONDS> 0
0
0
<COMMON> 9,631
<OTHER-SE> 668,632
<TOTAL-LIABILITY-AND-EQUITY> 1,015,541
<SALES> 267,273
<TOTAL-REVENUES> 267,273
<CGS> 111,457
<TOTAL-COSTS> 216,305
<OTHER-EXPENSES> (3,262)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,797
<INCOME-PRETAX> 54,230
<INCOME-TAX> 18,980
<INCOME-CONTINUING> 35,250
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 35,250
<EPS-PRIMARY> .37
<EPS-DILUTED> .36
</TABLE>
