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, 1999
-OR-
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission File No. 1-5050
ALBERTO-CULVER COMPANY
(Exact name of registrant as specified in its charter)
Delaware 36-2257936
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2525 Armitage Avenue
Melrose Park, Illinois 60160
Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (708) 450-3000
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
At March 31, 1999, there were 23,371,447 shares of Class A common stock
outstanding and 32,957,471 shares of Class B common stock outstanding.
<PAGE>
7
PART I
ITEM 1. FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
ALBERTO-CULVER COMPANY AND SUBSIDIARIES
Consolidated Statements of Earnings
Three Months Ended March 31, 1999 and 1998
(dollar amounts in thousands, except per share figures)
(Unaudited)
1999 1998
<S> <C> <C>
Net sales $487,396 455,195
Costs and expenses:
Cost of products sold 237,801 225,770
Advertising, promotion, selling and administrative 214,977 196,054
Interest expense, net of interest income of $710
in 1999 and $619 in 1998 2,917 2,163
-------- --------
Total costs and expenses 455,695 423,987
-------- --------
Earnings before provision for income taxes 31,701 31,208
Provision for income taxes 11,651 11,625
--------- --------
Net earnings(Note 3) $ 20,050 19,583
======== =========
Net earnings per share (Note 2)
Basic $ .35 .34
======= ===========
Diluted $ .35 .32
======= ===========
Cash dividends paid per share $ .065 .06
======= ===========
See notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALBERTO-CULVER COMPANY AND SUBSIDIARIES
Consolidated Statements of Earnings
Six Months Ended March 31, 1999 and 1998
(dollar amounts in thousands, except per share figures)
(Unaudited)
1999 1998
<S> <C> <C>
Net sales $951,947 900,595
Costs and expenses:
Cost of products sold 466,558 443,810
Advertising, promotion, selling and administrative 418,807 389,951
Interest expense, net of interest income of $1,436
in 1999 and $1,382 in 1998 5,443 4,244
-------- --------
Total costs and expenses 890,808 838,005
-------- --------
Earnings before provision for income taxes 61,139 62,590
Provision for income taxes 22,469 23,315
--------- --------
Net earnings (Note 3) $ 38,670 39,275
======== =========
Net earnings per share (Note 2)
Basic $ .68 .69
======= =========
Diluted $ .67 .64
======= =========
Cash dividends paid per share $ .125 .11
======= =========
See notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALBERTO-CULVER COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
March 31, 1999 and September 30, 1998
(dollar amounts in thousands, except per share data)
(Unaudited)
March 31, September 30,
ASSETS 1999 1998
- ------ ----------------- -------------------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 50,069 72,395
Short-term investments 529 910
Receivables, less allowance for doubtful
accounts ($9,357 at 3/31/99 and $10,868 at 9/30/98) 127,402 129,063
Inventories (Note 4) 386,422 369,204
Other current assets 20,050 19,993
---------- ----------
Total current assets 584,472 591,565
---------- ----------
Property, plant and equipment at cost, less accumulated
depreciation ($197,418 at 3/31/99 and $184,932 at 9/30/98) 229,222 223,476
Goodwill, net 170,273 137,599
Trade names and other intangible assets, net 64,623 67,158
Other assets 50,458 48,386
----------- -----------
Total assets $1,099,048 1,068,184
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt and short-term borrowings $ 3,760 3,238
Accounts payable 179,795 177,564
Accrued expenses 101,765 112,015
Income taxes 23,506 20,808
---------- ----------
Total current liabilities 308,826 313,625
---------- ----------
Long-term debt 203,900 171,760
Deferred income taxes 26,203 28,260
Other liabilities 21,375 20,548
Stockholders' equity (Note 2): Common stock, par value $.22 per share:
Class A authorized 75,000,000 shares; issued 30,612,798 shares 6,735 6,735
Class B authorized 75,000,000 shares; issued 37,710,665 shares 8,296 8,296
Additional paid-in capital 191,742 192,610
Retained earnings 560,271 528,733
Accumulated other comprehensive income-
foreign currency translation (Note 3) (33,166) (28,131)
----------- -----------
733,878 708,243
Less treasury stock at cost (Class A common shares:
7,241,351 at 3/31/99 and 6,549,947 at 9/30/98;
Class B common shares: 4,753,184 at 3/31/99 and 4,563,184 at 9/30/98) (195,134) (174,252)
---------- -----------
Total stockholders' equity 538,744 533,991
---------- -----------
Total liabilities and stockholders' equity $1,099,048 1,068,184
============ ===========
See notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALBERTO-CULVER COMPANY AND SUBSIDIARIES
Consolidated Statements of Cash Flows
Six Months Ended March 31, 1999 and 1998
(dollar amounts in thousands)
(Unaudited)
1999 1998
<S> <C> <C>
Cash Flows from Operating Activities:
Net earnings $38,670 39,275
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation and amortization 20,867 19,721
Other, net 2,401 (1,216)
Cash effects of changes in (exclusive of acquisitions):
Receivables, net 54 5,210
Inventories (9,297) (9,792)
Other current assets (3,369) 662
Accounts payable and accrued expenses (16,523) (27,165)
Income taxes 5,202 12,038
----------- -----------
Net cash provided by operating activities 38,005 38,733
----------- ----------
Cash Flows from Investing Activities:
Short-term investments 958 6,551
Capital expenditures (19,608) (26,249)
Payments for purchased businesses, net of acquired companies' cash (48,924) (7,050)
Other, net 143 622
---------- ----------
Net cash used by investing activities (67,431) (26,126)
---------- ----------
Cash Flows from Financing Activities:
Short-term borrowings 885 (773)
Proceeds from long-term debt 34,080 404
Repayments of long-term debt (1,304) (3,540)
Proceeds from sale of receivables 5,000 --
Cash dividends paid (7,132) (6,222)
Cash proceeds from exercise of stock options 2,487 10,644
Stock purchased for treasury (25,383) (10,650)
-------- -----------
Net cash provided (used) by financing activities 8,633 (10,137)
-------- -----------
Effect of foreign exchange rate changes on cash (1,533) 301
-------- -----------
Net increase (decrease) in cash and cash equivalents (22,326) 2,771
Cash and cash equivalents at beginning of period 72,395 76,040
-------- -----------
Cash and cash equivalents at end of period $50,069 78,811
======== ==========
See notes to consolidated financial statements.
</TABLE>
<PAGE>
ALBERTO-CULVER COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(l) The consolidated financial statements contained in this report have not
been examined by independent public accountants, except for balance sheet
information presented at September 30, 1998. However, in the opinion of
the company, the consolidated financial statements reflect all
adjustments, which include only normal adjustments, necessary to present
fairly the data contained therein. The results of operations for the
periods covered are not necessarily indicative of results for a full year.
(2) Basic earnings per share is calculated using the weighted average of
actual shares outstanding of 56,764,000 and 56,886,000 for the three
months ended March 31, 1999 and 1998, respectively, and 56,953,000 and
56,646,000 for the six months ended March 31, 1999 and 1998, respectively.
Diluted earnings per share is determined by dividing net earnings before
interest expense (net of tax benefit) on the convertible subordinated
debentures by the weighted average shares outstanding, including common
stock equivalents, after giving effect to common shares to be issued
assuming conversion of the convertible subordinated debentures to Class A
common stock. The convertible subordinated debentures were converted in
July, 1998. Diluted weighted average shares outstanding were 57,628,000
and 64,124,000 for the three months ended March 31, 1999 and 1998,
respectively, and 57,814,000 and 63,884,000 for the six months ended March
31, 1999 and 1998, respectively.
The following table provides a reconciliation of basic and diluted
earnings per share (in thousands):
<TABLE>
Three Months Six Months
Ended March 31 Ended March 31
--------------- --------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net earnings $20,050 19,583 38,670 39,275
Interest expense on convertible subordinated
debentures, net of tax benefit -- 910 -- 1,820
------- ------ ------ ------
Diluted net earnings $20,050 20,493 38,670 41,095
======= ====== ====== ======
Weighted average shares
outstanding--basic 56,764 56,886 56,953 56,646
Effect of dilutive securities:
Assumed conversion of
subordinated debentures -- 6,178 -- 6,178
Assumed exercise of
stock options 789 1,060 786 1,060
Other 75 -- 75 --
---------- --------- ------ ------
Weighted average shares
outstanding--diluted 57,628 64,124 57,814 63,884
========= ======= ====== ======
</TABLE>
<PAGE>
ALBERTO-CULVER COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
(3) Effective the first quarter of fiscal year 1999, the company adopted
Statement of Financial Accounting Standards ("SFAS") No. 130, "Reporting
Comprehensive Income", which establishes rules for the reporting of
comprehensive income and its components. Comprehensive income consists of
net earnings and foreign currency translation adjustments as follows (in
thousands):
Three Months Six Months
Ended March 31 Ended March 31
-------------- --------------
1999 1998 1999 1998
---- ---- ---- ----
Net earnings $20,050 19,583 38,670 39,275
Other comprehensive income
adjustments - foreign
currency translation (4,667) (2,049) (5,035) (5,028)
Comprehensive income $15,383 17,534 33,635 34,247
======== ======== ====== ======
(4) Inventories consist of the following (in thousands):
March 31, September 30,
1999 1998
Finished goods $345,774 325,769
Work-in-process 4,967 6,119
Raw materials 35,681 37,316
--------------- ---------------
$386,422 369,204
============= ==============
(5) During fiscal 1998, the Board of Directors authorized the company to
purchase up to 6.0 million shares of its Class A common stock. This
authorization was increased to 9.0 million shares in October, 1998. As of
March 31, 1999, the company had purchased 6,490,700 Class A common shares
under this program at a total cost of $146.5 million. In addition, the
Board of Directors authorized the purchase of 190,000 Class B common
shares from a related party in January, 1999, at a total cost of $5.0
million, which was equal to fair market value on the date of purchase.
<PAGE>
13
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL CONDITION
RESULTS OF OPERATIONS
Second Quarter and Six Months Ended March 31, 1999 vs. Second Quarter and Six
Months Ended March 31, 1998
The company achieved record second quarter net sales of $487.4 million in fiscal
year 1999, up $32.2 million or 7.1% over the comparable period of fiscal year
1998. For the six month period ending March 31, 1999, net sales reached a new
high of $951.9 million, representing a 5.7% increase compared to last year's six
month period.
Net earnings for the three months ended March 31, 1999 were a record $20.1
million or 2.4% higher than the same period of the prior year. Basic earnings
per share were 35 cents in 1999 and 34 cents in 1998. Diluted earnings per share
increased 9.4% to 35 cents from 32 cents in 1998.
Net earnings for the six months ended March 31, 1999 were $38.7 million or 1.5%
lower than 1998. Basic earnings per share were 68 cents in 1999 and 69 cents in
1998. Diluted earnings per share increased 4.7% to 67 cents for the first six
months of 1999 from 64 cents in 1998.
Diluted earnings per share for both the second quarter and first half were
favorably affected by a decrease in diluted weighted average shares outstanding,
primarily due to the company's common stock purchases described in Note 5.
The following table presents net sales information by business segment for the
second quarter and first six months of fiscal years 1999 and 1998 (dollars in
millions):
SECOND QUARTER
Fiscal Year Dollar Percent
Net sales: 1999 1998 Change Change
- ---------- ------ ------ ------ ------
Alberto-Culver North America $111.0 115.9 (4.9) (4.2)%
Alberto-Culver International 108.3 101.5 6.8 6.7
Specialty distribution - Sally 273.1 241.6 31.5 13.1
Eliminations (5.0) (3.8) (1.2) (31.9)
-------- -------- ---------
$487.4 455.2 32.2 7.1%
====== ====== =======
SIX MONTHS
Fiscal Year Dollar Percent
Net sales: 1999 1998 Change Change
- --------- ---- ---- ------ ------
Alberto-Culver North America $222.4 231.8 (9.4) (4.1)%
Alberto-Culver International 209.7 204.3 5.4 2.7
Specialty distribution - Sally 528.4 472.4 56.0 11.9
Eliminations (8.6) (7.9) (0.7) (8.5)
------ ------ ----
$951.9 900.6 51.3 5.7%
====== ===== ====
Compared to the same periods of the prior year, sales for Alberto-Culver North
America ("North America") decreased 4.2% and 4.1% for the second quarter and
first six months of fiscal year 1999, respectively. The decreases were primarily
due to lower sales for custom label filling operations and sales declines for
the Cortexx and VO Fine hair care lines.
Sales of Alberto-Culver International ("International") increased 6.7% in the
second quarter and 2.7% in the first half of fiscal 1999 compared to last year.
The fiscal year 1999 results were negatively impacted by the effect of foreign
exchange rates. Had foreign exchange rates this year been the same as the second
quarter and first half of fiscal 1998, Alberto-Culver International sales would
have increased 8.1% for the second quarter and 4.9% for the first half. The
growth was principally due to acquisitions in Latin America.
<PAGE>
The "Specialty distribution-Sally" business segment achieved sales increases of
$31.5 million or 13.1% for the second quarter and $56.0 million or 11.9% for the
first half of fiscal year 1999. The gains were attributable to higher sales for
established Sally Beauty Company outlets, the opening of new stores during the
year and the expansion of Sally's full service and foreign operations. At March
31, 1999, Sally Beauty Company had 2,124 stores offering a full-range of
professional beauty supplies.
Cost of products sold as a percent of net sales for the second quarter was 48.8%
as compared to 49.6% for the prior year and 49.0% for the first half versus
49.3% for the first six months of 1998. The decreases were primarily due to cost
savings and brand restages for North America.
Compared to the prior year, advertising, promotion, selling and administrative
expenses rose $18.9 million or 9.7% for the second quarter and $28.9 million or
7.4% for the first half. The increases resulted from higher selling and
administrative costs associated with the increase in the number of Sally Beauty
Company stores along with additional advertising, promotion and market research
expenditures.
Advertising, promotion and market research expenditures totaled $65.8 million
for the second quarter of 1999, an increase of 4.0% versus the prior year. For
the first half of fiscal year 1999, advertising, promotion and market research
expenditures were $130.8 million, an increase of 4.3% over last year.
Net interest expense increased $754,000 for the second quarter and $1.2 million
for the first half compared to the same periods of the prior year. The increases
were primarily attributable to the $120 million of 6.375% debentures issued in
June, 1998 partially offset by the elimination of interest expense on the $100
million of 5.5% convertible subordinated debentures which were converted into
Class A common shares in July, 1998. Interest expense was also higher due to $30
million borrowed under the company's revolving credit facility during the second
quarter of 1999, primarily to fund acquisitions.
The provision for income taxes as a percentage of earnings before income taxes
was 36.75% for the second quarter and first half of fiscal years 1999 and 37.25%
for the same periods in the prior year.
<PAGE>
FINANCIAL CONDITION
March 31, 1999 v.s. September 30, 1998
The ratio of current assets to current liabilities was 1.89 to 1.00 at March 31,
1999 and September 30, 1998. Working capital of $275.7 million was $2.2 million
lower than the September 30, 1998 balance of $277.9 million.
Total borrowings increased $32.7 during the first six months of fiscal year 1999
to $207.7 million, primarily due to $30 million borrowed under the company's
revolving credit facility to fund the acquisitions of La Farmaco, an
Argentina-based manufacturer and marketer of branded personal care products, and
two full-service distributors by Sally Beauty. At March 31, 1999, the company
had $170 million available under its revolving credit facility.
YEAR 2000 READINESS DISCLOSURES
Many computer systems use only two digits to represent the year and they may be
unable to process accurately information that contains dates before, during or
after the year 2000. As a result, organizations that depend on computers are at
risk for possible date-based computation errors which could result in erroneous
information or system failures that may disrupt their business operations. This
is commonly known as the Year 2000 ("Y2K") problem.
Most of the software purchased by the company within the last five years is
either Y2K compliant or the vendor has certified that Y2K compliant upgrades
will be available sufficiently in advance of December 31, 1999. In late 1995,
the company inventoried and assessed key financial and operational information
systems and prepared a prioritized plan for Y2K systems modifications or
replacements. The plan is revised periodically and progress against the plan is
monitored and periodically reported to management and the Audit Committee of the
Board of Directors. Implementation of required changes to the company's critical
systems is currently scheduled to be completed by October, 1999. Certification
of critical systems, which includes testing by technicians and key users, is
expected to be completed before December 31, 1999. The company's assessment of
non-information technology systems (e.g., manufacturing equipment) is expected
to be completed by July, 1999, and an action plan will be prepared based on the
results.
The company is developing a contingency plan to be followed in the event of a
Y2K-related failure of a business-critical system. This plan should be complete
by September, 1999 and is expected to include, for example, identification of
alternate suppliers and possible increases in inventory levels, including raw
materials and packaging. Once developed, contingency plans and related cost
estimates will be refined as additional information becomes available.
Incremental costs, which include contractor costs to modify existing systems,
and costs of internal resources dedicated to achieving Y2K compliance are
charged to expense as incurred. The incremental costs are currently expected to
total approximately $2.4 million, of which approximately 61% has been spent to
date. Incremental costs are presently being funded through operating cash flow.
The amounts do not include any costs associated with the implementation of
contingency plans, which are in the process of being developed, as discussed
above. The costs associated with replacement of computerized systems, hardware
and related equipment (currently estimated to be approximately $8.2 million),
substantially all of which will be capitalized, are not included in the above
estimates.
The company's Y2K readiness program is an evolving and ongoing process.
Accordingly, current conclusions as to what constitutes areas of the company's
greatest Y2K exposure and the estimates of costs and completion dates, as
described above, are subject to change. The Y2K problem has many aspects and
potential consequences, some of which are not reasonably foreseeable, and there
can be no assurance that unforeseen consequences will not arise.
FORWARD - LOOKING STATEMENTS
<PAGE>
This Quarterly Report on Form 10-Q and the documents incorporated by reference
herein, if any, may contain forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended and Section 21E of the
Security Exchange Act of 1934, as amended. Such statements are based on
management's current expectations and assessments of risks and uncertainties and
reflect various assumptions concerning anticipated results, which may or may not
prove to be correct. Some of the factors that could cause actual results to
differ materially from estimates or projections contained in such
forward-looking statements include the pattern of brand sales, including
variations in sales volume within periods; competition within the relevant
product markets, including pricing, promotional activities, continuing customer
acceptance of existing products and the ability to develop and successfully
introduce new products; risks inherent in acquisitions and stategic alliances;
changes in costs including changes in labor costs, raw material prices or
pormotional expenses; the costs and effects of unanticipated legal or
administrative proceedings; variations in political, economic or other factors
such as currency exchange rates, inflation rates, recessionary or expansive
trends, tax changes, legal and regulatory changes or other external factors over
which the company has no control. The company disclaims any obligation to update
any forward-looking statement in this Quarterly Report on Form 10-Q or any
document incorporated herein by reference.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
There have been no material changes in the company's market risk during the six
months ended March 31, 1999.
<PAGE>
PART II
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
At the annual meeting of stockholders on January 28, 1999, Howard B. Bernick,
Bernice E. Lavin, Harold M. Visotsky and Allan B. Muchin were elected as
directors of the Company. Mr. Bernick received a Class A and Class B common
stockholder vote of 21,476,751 and 30,777,152 shares "for" and 19,888 and
180,353 shares "withheld", respectively. Mrs. Lavin received a Class A and Class
B common stockholder vote of 21,464,583 and 30,764,366 shares "for" and 32,056
and 193,139 shares "withheld", respectively. Dr. Visotsky received a Class A and
Class B common stockholder vote of 21,471,063 and 30,759,909 shares "for" and
25,576 and 197,596 shares "withheld", respectively. Mr. Muchin received a Class
A and Class B common stockholder vote of 21,472,004 and 30,283,561 shares "for"
and 24,635 and 673,944 shares "withheld", respectively.
Class A common stock has a one-tenth vote per share and Class B common stock has
one vote per share.
Stockholders at the annual meeting also voted on amendments to the company=s
Management Incentive Plan. The amendments were approved by a Class A and Class B
stockholder vote of 20,560,318 and 30,239,628 shares "for"; 918,741 and 606,616
"against"; and 17,576 and 111,261 shares "abstaining", respectively.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
27 Financial Data Schedule
(b) Reports on Form 8-K:
No report on Form 8-K was filed by the registrant during the quarter
ended March 31, 1999.
<PAGE>
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.
ALBERTO-CULVER COMPANY
(Registrant)
By:/s/ William J. Cernugel
William J. Cernugel
Senior Vice President, Finance
(Principal Financial Officer)
May 14, 1999
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Exhibit 27
ALBERTO-CULVER COMPANY AND SUBSIDIARIES
Financial Data Schedule
Six Months Ended March 31, 1999
(in thousands)
This schedule contains summary financial information extracted from the
consolidated balance sheet as of March 31, 1999 and the consolidated statement
of earnings for the six months ended March 31, 1999 and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000003327
<NAME> Alberto-Culver
<MULTIPLIER> 1,000
<CURRENCY> US Dollars
<S> <C>
<PERIOD-TYPE> 12-mos
<FISCAL-YEAR-END> Sep-30-1999
<PERIOD-START> Oct-1-1998
<PERIOD-END> Mar-31-1999
<EXCHANGE-RATE> 1.00
<CASH> 50,069
<SECURITIES> 529
<RECEIVABLES> 136,759
<ALLOWANCES> 9,357
<INVENTORY> 386,422
<CURRENT-ASSETS> 584,472
<PP&E> 426,640
<DEPRECIATION> 197,418
<TOTAL-ASSETS> 1,099,048
<CURRENT-LIABILITIES> 308,826
<BONDS> 203,900
0
0
<COMMON> 15,031
<OTHER-SE> 523,713
<TOTAL-LIABILITY-AND-EQUITY> 1,099,048
<SALES> 951,947
<TOTAL-REVENUES> 951,947
<CGS> 466,558
<TOTAL-COSTS> 466,558
<OTHER-EXPENSES> 418,807
<LOSS-PROVISION> 2,279
<INTEREST-EXPENSE> 6,879
<INCOME-PRETAX> 61,139
<INCOME-TAX> 22,469
<INCOME-CONTINUING> 38,670
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 38,670
<EPS-PRIMARY> .68
<EPS-DILUTED> .67
</TABLE>
