SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1996
[ ] 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 1-7884
MESA ROYALTY TRUST
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
TEXAS 74-6284806
(STATE OF INCORPORATION (I.R.S. EMPLOYER
OR ORGANIZATION) IDENTIFICATION NO.)
TEXAS COMMERCE BANK
NATIONAL ASSOCIATION
CORPORATE TRUST DIVISION
712 MAIN STREET
HOUSTON, TEXAS 77002
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
(713) 216-5100
(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 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 registrant's
classes of common stock, as of the latest practicable date.
As of May 13, 1996 -- 1,863,590 Units of Beneficial Interest in
Mesa Royalty Trust.
PART I -- FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
MESA ROYALTY TRUST
STATEMENTS OF DISTRIBUTABLE INCOME
(UNAUDITED)
THREE MONTHS ENDED
MARCH 31,
-------------------------
1996 1995
---------- ----------
Royalty income................................ $1,954,563 $2,102,914
Interest income............................... 22,153 23,962
General and administrative expense............ (10,085) (7,533)
---------- ----------
Distributable income..................... $1,966,631 $2,119,343
========== ==========
Distributable income per unit............ $ 1.0553 $ 1.1372
========== ==========
STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS
MARCH 31, DECEMBER 31,
1996 1995
------------ ------------
(UNAUDITED)
ASSETS
Cash and short-term investments...... $ 1,948,360 $ 1,075,495
Interest receivable.................. 18,271 13,172
Net overriding royalty interest in
oil and gas properties............. 42,498,034 42,498,034
Accumulated amortization............. (23,466,438) (22,871,195)
------------ ------------
$ 20,998,227 $ 20,715,506
============ ============
LIABILITIES AND TRUST CORPUS
Distributions payable................ $ 1,966,631 $ 1,088,667
Trust corpus (1,863,590 units of
beneficial interest
authorized and outstanding)........ 19,031,596 19,525,839
------------ ------------
$ 20,998,227 $ 20,715,506
============ ============
(The accompanying notes are an integral part of these financial statements.)
1
MESA ROYALTY TRUST
STATEMENTS OF CHANGES IN TRUST CORPUS
(UNAUDITED)
THREE MONTHS ENDED
MARCH 31,
------------------------------
1996 1995
-------------- --------------
Trust corpus, beginning of period.... $ 19,626,839 $ 21,982,041
Distributable income............ 1,966,631 2,119,343
Distributions to unitholders.... (1,966,631) (2,119,343)
Amortization of net overriding
royalty interest............. (595,243) (644,556)
-------------- --------------
Trust corpus, end of period.......... $ 19,031,596 $ 21,337,485
============== ==============
(The accompanying notes are an integral part of these financial statements.)
2
MESA ROYALTY TRUST
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1 -- TRUST ORGANIZATION
The Mesa Royalty Trust (the "Trust") was created on November 1, 1979 when
Mesa Petroleum Co. conveyed to the Trust a 90% net profits overriding royalty
interest (the "Royalty") in certain producing oil and gas properties located in
the Hugoton field of Kansas, the San Juan Basin field of New Mexico and Colorado
and the Yellow Creek field of Wyoming (collectively, the "Royalty Properties").
Mesa Petroleum Co. was the predecessor to Mesa Limited Partnership ("MLP") which
was the predecessor to MESA Inc. On April 30, 1991, MLP sold its interests in
the Royalty Properties located in the San Juan Basin field to Conoco Inc.
("Conoco"), a wholly-owned subsidiary of E. I. duPont de Nemours & Company.
Conoco sold the portion of its interests in the San Juan Basin Royalty
Properties located in Colorado to MarkWest Energy Partners, Ltd. (effective
January 1, 1993) and Red Willow Production Company (effective April 1, 1992). On
October 26, 1994, MarkWest Energy Partners, Ltd. sold substantially all of its
interest in the Colorado San Juan Basin Royalty Properties to Amoco Production
Company ("Amoco"), a subsidiary of Amoco Corp. The Hugoton Royalty Properties
are operated by Mesa Operating Co., a subsidiary of MESA Inc., and MESA Inc.'s
interest in such properties is owned by Hugoton Capital Limited Partnership,
another MESA Inc. subsidiary. The San Juan Basin Royalty Properties located in
New Mexico are operated by Conoco. The San Juan Basin Royalty Properties located
in Colorado are operated by Amoco. As used in this report, the term "Mesa"
generally refers to the operator of the Hugoton Royalty Properties, Conoco
refers to the operator of the San Juan Basin Royalty Properties, other than the
portion of such properties located in Colorado and Amoco refers to the operator
of the Colorado San Juan Basin Royalty Properties, unless otherwise indicated.
The terms "working interest owner" and "working interest owners" generally refer
to the operators of the Royalty Properties as described above, unless the
context in which such terms are used indicates otherwise.
NOTE 2 -- BASIS OF PRESENTATION
The accompanying unaudited financial information has been prepared by Texas
Commerce Bank National Association ("Trustee") in accordance with the
instructions to Form 10-Q, and the Trustee believes such information includes
all the disclosures necessary to make the information presented not misleading.
The information furnished reflects all adjustments which are, in the opinion of
the Trustee, necessary for a fair presentation of the results for the interim
periods presented. The financial information should be read in conjunction with
the financial statements and notes thereto included in the Trust's 1995 Annual
Report on Form 10-K.
The Mesa Royalty Trust Indenture was amended in 1985, the effect of which
was an overall reduction of approximately 88.56% in the size of the Trust;
therefore, the Trust is now entitled each month to receive 90% of 11.44% of the
net proceeds for the preceding month. Generally, net proceeds means the excess
of the amounts received by the working interest owners from sales of oil and gas
from the Royalty Properties over operating and capital costs incurred.
The financial statements of the Trust are prepared on the following basis:
(a) Royalty income recorded for a month is the amount computed and
paid by the working interest owners to the Trustee for such month rather
than either the value of a portion of the oil and gas produced by the
working interest owners for such month or the amount subsequently
determined to be the Trust's proportionate share of the net proceeds for
such month;
(b) Interest income, interest receivable, and distributions payable to
unitholders include interest to be earned from the balance sheet date
through the next distribution date;
(c) Trust general and administrative expenses, net of
reimbursements, are recorded in the month they accrue;
3
MESA ROYALTY TRUST
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
(UNAUDITED)
(d) Amortization of the net overriding royalty interests, which is
calculated on a unit-of-production basis, is charged directly to trust
corpus since such amount does not affect distributable income; and
(e) Distributions payable are determined on a monthly basis and are
payable to unitholders of record as of the last business day of each month
or such other day as the Trustee determines is required to comply with
legal or stock exchange requirements. However, cash distributions are made
quarterly in January, April, July and October, and include interest earned
from the monthly record dates to the date of distribution.
This basis for reporting royalty income is thought to be the most
meaningful because distributions to the unitholders for a month are based on net
cash receipts for such month. However, these statements differ from financial
statements prepared in accordance with generally accepted accounting principles
in several respects. Under such principles, royalty income for a month would be
based on net proceeds for such month without regard to when calculated or
received and interest income would include interest earned during the period
covered by the financial statements and would exclude interest from the period
end to the date of distribution.
4
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Form 10-Q includes "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements other than
statements of historical facts included in this Form 10-Q, including without
limitation the statements under "Management's Discussion and Analysis of
Financial Condition and Results of Operations" regarding the financial position
of MESA Inc. and its potential effects on the Trust, are forward-looking
statements. Although the Working Interest Owners have advised the Trust that
they believe that the expectations reflected in the forward-looking statements
contained herein are reasonable, no assurance can be given that such
expectations will prove to have been correct. Important factors that could cause
actual results to differ materially from expectations ("Cautionary Statements")
are disclosed in this Form 10-Q, including without limitation in conjunction
with the forward-looking statements included in this Form 10-Q. All subsequent
written and oral forward-looking statements attributable to the Trust or persons
acting on its behalf are expressly qualified in their entirety by the Cautionary
Statements.
SUMMARY OF ROYALTY INCOME AND AVERAGE PRICES
(UNAUDITED)
Royalty income is computed after deducting the Trust's proportionate share
of capital costs, operating costs and interest on any cost carryforward from the
Trust's proportionate share of "Gross Proceeds," as defined in the Royalty
conveyance. The following summary illustrates the net effect of the components
of the actual Royalty computation for the periods indicated.
<TABLE>
<CAPTION>
THREE MONTHS ENDED MARCH 31,
-----------------------------------------------------------
1996 1995
---------------------------- ----------------------------
OIL, OIL,
CONDENSATE CONDENSATE
NATURAL AND NATURAL NATURAL AND NATURAL
GAS GAS LIQUIDS GAS GAS LIQUIDS
------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
The Trust's proportionate share of
Gross Proceeds(1).................. $ 2,197,169 $ 678,660 $ 2,128,678 $ 748,126
Less the Trust's proportionate share
of:
Capital costs recovered(2)...... (104,419) -- (28,957) --
Operating costs................. (770,212) (37,788) (690,566) (46,117)
Interest on cost carryforward... (8,847) -- (8,250) --
------------- ------------ ------------- ------------
Royalty income....................... $ 1,313,691 $ 640,872 $ 1,400,905 $ 702,009
============= =========== ============= ===========
Average sales price.................. $ 1.71 $ 11.98 $ 1.58 $ 11.20
============= =========== ============= ===========
(Mcf) (Bbls) (Mcf) (Bbls)
Net production volumes attributable
to the Royalty..................... 770,443 53,461 882,461 62,814
============= =========== ============= ===========
</TABLE>
- ------------
(1) Gross Proceeds from natural gas liquids attributable to the Hugoton and San
Juan Basin Properties are net of a volumetric in-kind processing fee
retained by Mesa and Conoco, respectively.
(2) Capital costs recovered represents capital costs incurred during the current
or prior periods to the extent that such costs have been recovered by the
working interest owners from current period Gross Proceeds. Cost
carryforward represents capital costs incurred during the current or prior
periods which will be recovered from future period Gross Proceeds. The cost
carryforward resulting from the Fruitland Coal drilling program was $488,161
and $471,923 at March 31, 1996 and March 31, 1995, respectively. The cost
carryforward at March 31, 1996 and March 31, 1995 relate solely to the San
Juan Basin Colorado properties.
5
THREE MONTHS ENDED MARCH 31, 1996 AND 1995
The distributable income of the Trust for each period includes the royalty
income received from the working interest owners during such period, plus
interest income earned to the date of distribution. Trust administration
expenses are deducted in the computation of distributable income. Distributable
income for the quarter ended March 31, 1996 was $1,966,631, representing $1.0553
per unit, compared to $2,119,343, representing $1.1372 per unit, in the first
quarter of 1995. Based on 1,863,590 units outstanding for the quarters ended
March 31, 1996 and 1995, respectively, the per unit distributions were as
follows:
1996 1995
--------- ---------
January.............................. $ .2976 $ .3334
February............................. .3738 .4520
March................................ .3839 .3518
--------- ---------
$ 1.0553 $ 1.1372
========= =========
HUGOTON FIELD
Mesa has advised the Trust that since June 1, 1995 natural gas produced
from the Hugoton field has generally been sold under short-term contracts at
market clearing prices to multiple purchasers including Western Resources, Inc.
("WRI"), Westar Gas Marketing, Inc., Missouri Gas Energy and Noram Energy
Services, Inc. During the winter heating season, Mesa sold gas to WRI pursuant
to a five month contract effective November 1, 1995. The contract provided for
WRI to purchase up to 25 MMcf per day of gas at market clearing prices
determined monthly based on third party published index prices, plus five cents
per MMBtu. Mesa expects to continue to market gas production from the Hugoton
field under short-term and multi-month contracts. Overall market prices received
for natural gas from the Hugoton Royalty Properties were substantially higher in
the first quarter of 1996 compared to the first quarter of 1995.
In June 1994, Mesa entered into a Gas Transportation Agreement with WRI
("Gas Transportation Agreement") for a primary term of five years commencing
June 1, 1995 and ending June 1, 2000, but which may be continued in effect
year-to-year thereafter. Pursuant to the Gas Transportation Agreement, WRI has
agreed to compress and transport up to 160 MMcf per day of gas and redeliver
such gas to Mesa at the inlet of Mesa's Satanta Plant. Mesa has agreed to pay
WRI a fee of $0.06 per Mcf escalating 4% annually beginning June 1, 1996.
Royalty income attributable to the Hugoton Royalty increased to $1,606,589
in the first quarter of 1996, from $1,534,706 in the first quarter of 1995
primarily due to increased gas production and higher prices received for
production of natural gas from the Hugoton Royalty Properties. The average price
received in the first quarter of 1996 for natural gas and natural gas liquids
sold from the Hugoton Royalty Properties was $1.83 per Mcf and $12.04 per
barrel, respectively, compared to $1.63 per Mcf and $11.11 per barrel,
respectively, in the first quarter of 1995. Net production attributable to the
Hugoton Royalty was 585,407 Mcf of natural gas and 44,460 barrels of natural gas
liquids in the first quarter of 1996 as compared to 569,902 Mcf of natural gas
and 54,524 barrels of natural gas liquids in the first quarter of 1995.
Allowable rates of production in the Hugoton field are set by the Kansas
Corporation Commission (the "KCC") based on the level of market demand. The KCC
has set the Hugoton field allowable for the period April 1, 1996 through
September 30, 1996, at 238 billion cubic feet of gas, compared with 244 billion
cubic feet of gas during the same period last year.
6
The KCC held hearings during September 1995 to consider regulatory changes
to the manner in which field wide allowables are allocated among individual
wells within the Panoma field, a producing formation which directly underlies
the Hugoton field and which is included in the "Hugoton Royalty Properties" as
such term is used herein. Specifically, the KCC considered proposals from
various producers to amend calculations of well deliverability, the allocation
of allowables based on acreage and the makeup of underages. The KCC held an
Administrative Hearing on November 22, 1995 in which it agreed to several
changes to the Panoma Field Rules. The KCC then issued an order effective as of
November 1, 1995 under which the Hugoton Royalty Properties' percentage of the
field allowable assigned increased.
In addition, MESA Inc. has advised the Trust that its independent public
accountants included a going concern paragraph in their report on its 1995
financial statements. The going concern paragraph refers to MESA Inc.'s current
financial forecasts, which indicate that MESA Inc. will be unable to fund
required debt principal and interest obligations due in June 1996 with cash
flows from operating activities, available cash, and investment balances.
Subsequent to the issuance of its 1995 financial statements, MESA Inc. revised
its financial forecasts to reflect actual first quarter 1996 results and
expectations of increased prices to be received for production during the
remainder of 1996. As a result, MESA Inc. expects to have sufficient available
cash and investment balances at June 30, 1996 to meet its obligations. However,
assuming no changes in its capital structure and no significant transactions are
completed, available cash and securities balances are not expected to be
sufficient to meet such obligations in the second half of 1996.
On April 29, 1996, MESA Inc. signed a definitive agreement with a
partnership controlled by Rainwater, Inc. ("Rainwater") intended to recapitalize
MESA Inc. with a $265 million equity infusion and a refinancing of substantially
all of MESA Inc.'s remaining debt. The proposed transaction is subject to MESA
Inc. stockholder approval. There can be no assurance that this transaction will
be completed or what the final terms or timing thereof will be. If the Rainwater
transaction is not completed, MESA Inc. has advised the Trust it will pursue
other alternatives to address its liquidity issues and financial condition,
including other potential transactions arising from the proposal solicitation
process conducted in 1995, the possibility of seeking to restructure its balance
sheet by negotiating with its current debt holders or seeking protection from
its creditors under the Federal Bankruptcy Code.
MESA Inc.'s projected debt service problems, as well as any refinancing,
restructuring or other strategic alternative, could have significant effects on
the Trust, although the precise nature of such effects cannot be predicted or
quantified at this time. No assurance can be given by the Trust regarding MESA
Inc.'s financial condition.
SAN JUAN BASIN
Royalty income from the San Juan Basin Royalty Properties is calculated and
paid to the Trust on a state-by-state basis. The Royalty income from the San
Juan Basin Royalty Properties located in the state of New Mexico was $347,974
during the first quarter of 1996 as compared with royalty income of $568,208 in
the first quarter of 1995. No royalty income was received from San Juan Basin
Royalty properties located in Colorado for the first quarter of 1996 or 1995, as
costs associated with the Fruitland Coal drilling on such properties have not
been fully recovered. Net production attributable to the San Juan Basin Royalty
was 185,036 Mcf of natural gas and 9,001 barrels of natural gas liquids in the
first quarter of 1996, compared to 312,559 Mcf of natural gas and 8,290 barrels
of natural gas liquids in the first quarter of 1995. The average price received
in the first quarter of 1996 for natural gas sold from the San Juan Basin was
$1.31 per Mcf, compared to $1.51 per Mcf during the same period in 1995.
The Trust's interest in the San Juan Basin was conveyed from Mesa's working
interest in 31,328 net producing acres in northwestern New Mexico and
southwestern Colorado. The San Juan Basin-New Mexico reserves represent
approximately 19% of the Trust's reserves. Mesa completed the sale of its
underlying interest in the San Juan Basin Royalty Properties to Conoco on April
30, 1991. Conoco subsequently sold its underlying interest in the Colorado
portion of the San Juan Basin Royalty Properties to MarkWest Energy Partners,
Ltd. (effective January 1, 1993) and Red Willow Production Company (effective
April 1, 1992). On October 26, 1994, MarkWest Energy Partners, Ltd. sold
substantially all of its interest in the Colorado San Juan Basin Royalty
Properties to Amoco. The San Juan Basin Royalty Properties located in Colorado
account for approximately 5% of the Trust's reserves.
7
In April 1990, the working interest owner began drilling for coalbed
methane gas in the Fruitland Coal formation of the San Juan Basin. The Fruitland
Coal formation has been identified as one of the most prolific sources of U.S.
coalbed methane reserves. The Trust owns an interest in 26,700 gross acres and
25,400 net acres with Fruitland Coal potential. The working interest owner has
advised the Trust that it operates 40 (22.9 net) Fruitland Coal wells on Trust
properties. Of such wells, 37 (21.7 net) are producing at a combined gross rate
of approximately 66.3 (35.8 net) MMcf per day.
The gas that is currently being produced from the San Juan Basin Royalty
Properties is being sold primarily on the spot market. Conoco has advised the
Trust that it will also consider selling some of the gas produced from these
wells pursuant to longer term contracts at spot market prices.
Conoco has informed the Trust that it believes the production from the
Fruitland Coal formation will generally qualify for the tax credits provided
under Section 29 of the Internal Revenue Code of 1986, as amended. Thus,
unitholders are potentially eligible to claim their share of the tax credit
attributable to this qualifying production. Each unitholder should consult his
tax advisor regarding the limitations and requirements for claiming this tax
credit.
PART II -- OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(A) EXHIBITS
(Asterisk indicates exhibit previously filed with the Securities and
Exchange Commission and incorporated herein by reference.)
<TABLE>
<CAPTION>
SEC FILE
OR
REGISTRATION EXHIBIT
NUMBER NUMBER
------------ -------
<S> <C> <C> <C>
4(a) *Mesa Royalty Trust Indenture between Mesa Petroleum Co. and Texas
Commerce Bank National Association, as Trustee, dated November 1,
1979.................................................................... 2-65217 1(a)
4(b) *Overriding Royalty Conveyance between Mesa Petroleum Co. and Texas
Commerce Bank, as Trustee, dated November 1, 1979....................... 2-65217 1(b)
4(c) *First Amendment to the Mesa Royalty Trust Indenture dated as of March
14, 1985 (Exhibit 4(c) to Form 10-K for year ended December 31, 1984 of
Mesa Royalty Trust)..................................................... 1-7884 4(c)
4(d) *Form of Assignment of Overriding Royalty Interest, effective April 1,
1985, from Texas Commerce Bank National Association, as Trustee, to MTR
Holding Co. (Exhibit 4(d) to Form 10-K for year ended December 31, 1984
of Mesa Royalty Trust).................................................. 1-7884 4(d)
4(e) *Purchase and Sale Agreement, dated March 25, 1991, by and among Mesa
Limited Partnership, Mesa Operating Limited Partnership and
Conoco, as amended on April 30, 1991 (Exhibit 4(e) to Form
10-K for year ended
December 31, 1991 of Mesa Royalty Trust)................................ 1-7884 4(e)
27 Financial Data Schedule
</TABLE>
(B) REPORTS ON FORM 8-K
No reports on Form 8-K were filed with the Securities and Exchange
Commission by the Trust during the first quarter of 1996.
8
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.
MESA ROYALTY TRUST
TEXAS COMMERCE BANK
By NATIONAL ASSOCIATION
TRUSTEE
By MICHAEL J. ULRICH
MICHAEL J. ULRICH
SENIOR VICE PRESIDENT & TRUST
OFFICER
Date: May 13, 1996
The Registrant, Mesa Royalty Trust, has no principal executive officer,
principal financial officer, board of directors or persons performing similar
functions. Accordingly, no additional signatures are available and none have
been provided.
9
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM MESA ROYALTY TRUST AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 1,948,360
<SECURITIES> 0
<RECEIVABLES> 18,271
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,966,631
<PP&E> 42,498,034
<DEPRECIATION> 23,466,438
<TOTAL-ASSETS> 20,998,227
<CURRENT-LIABILITIES> 1,966,631
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 19,031,596
<TOTAL-LIABILITY-AND-EQUITY> 20,998,227
<SALES> 1,954,563
<TOTAL-REVENUES> 1,976,716
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 10,085
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,966,631
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,966,631
<EPS-PRIMARY> 1.055
<EPS-DILUTED> 1.055
</TABLE>
