<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
CHECK ONE
X Quarterly report pursuant to Section 13 or 15(d) of the Securities
- --- Exchange Act of 1934 for the thirteen weeks ended May 4, 1996 or
Transition report pursuant to Section 13 or 15(d) of the Securities
- --- Exchange Act of 1934
COMMISSION FILE NUMBER 0-7214
HECHINGER COMPANY
(Exact name of Registrant as specified in its charter)
<TABLE>
<S> <C>
DELAWARE 52-1001530
(State or other jurisdiction of incorporation) (I.R.S. Employer Identification No.)
1801 MCCORMICK DRIVE, LARGO, MARYLAND 20774
(Address of principal executive offices) (Zip Code)
</TABLE>
Registrant's telephone number, including area code: (301) 341-1000
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 June 11, 1996.
31,530,001 shares of Class A Common Stock, $.10 par value
10,715,215 shares of Class B Common Stock, $.10 par value
1 of 14
<PAGE> 2
HECHINGER COMPANY
INDEX TO FORM 10-Q
THIRTEEN WEEKS ENDED MAY 4, 1996
<TABLE>
<CAPTION>
DESCRIPTION PAGE
- ----------- ----
<S> <C> <C>
Part I. Financial Information:
Item 1. Financial Statements 3
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 3 - 4
Part II. Other Information:
Item 6. Exhibits and Reports on Form 8-K 5
Index to Exhibits 7
</TABLE>
2
<PAGE> 3
PART I
ITEM 1. FINANCIAL STATEMENTS
The information called for by this item is hereby incorporated by reference
from Exhibits 99(a) - 99(e) of this report.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following table sets forth the sales reported by the Company (in millions):
<TABLE>
<CAPTION>
TOTAL TOTAL TOTAL COMPARABLE
SALES SALES SALES STORE SALES
PERIOD MAY 4, 1996 APR 29, 1995 CHANGE CHANGE
- ------ ----------- ------------ ------ ------------
<S> <C> <C> <C> <C>
Thirteen weeks $561.3 $553.2 1% (3)%
</TABLE>
The sales increase for the thirteen weeks ended May 4, 1996 was due primarily
to eight stores opened since first quarter last year which have generated
higher sales volume than the nine stores closed during the same period. The
comparable store sales decrease was due primarily to unseasonable weather in
the Company's markets and increased competition.
The following table sets forth the number of stores operated by the Company:
<TABLE>
<S> <C>
As of April 29, 1995 119
Second quarter 1995 openings 2
Second quarter 1995 closings (7)
As of July 29, 1995 114
Third quarter 1995 openings 5
Third quarter 1995 closings (1)
As of October 28, 1995 118
Fourth quarter 1995 openings -
Fourth quarter 1995 closings -
As of February 3, 1996 118
First quarter 1996 openings 1
First quarter 1996 closings (1)
----
As of May 4, 1996 118
====
</TABLE>
For the thirteen weeks ended May 4, 1996, cost of sales was 79.4% of sales
compared to 78.4% of sales for the corresponding period last year.
Distribution, buying and occupancy expenses are included in cost of sales and
are comprised substantially of fixed costs. The increase in cost of sales
during the thirteen weeks ended May 4, 1996 compared to the same period last
year is attributable to the impact of competitive pricing in certain markets,
among other factors.
For the thirteen weeks ended May 4, 1996 and April 29, 1995, selling, general
and administrative expenses were 20.1% of sales. These figures include
preopening expenses of $0.9 million for the thirteen weeks ended May 4, 1996
and $2.7 million the corresponding period last year. Excluding these expenses,
selling, general and administrative expenses for the thirteen weeks ended May
4, 1996 were 19.9% of sales, as compared to 19.6% of sales for the
corresponding period last year. This increase was due primarily to increased
net advertising costs as a result of increased advertising for the spring
selling season compared to the corresponding period last year.
3
<PAGE> 4
For the thirteen weeks ended May 4, 1996, interest expense was $9.8 million,
1.7% of sales, compared to $7.3 million, 1.3% of sales, for the corresponding
period last year. The increase was due primarily to interest on borrowings
under the new revolving credit facility and lower interest capitalized on
construction-in-progress as a result of fewer stores under construction.
For the thirteen weeks ended May 4, 1996, the effective tax rate was 0%
compared to 37.0% for the corresponding period last year. The decrease in the
effective tax rate resulted from the offset of the tax benefit associated with
the current period's loss by a valuation allowance.
For the thirteen weeks ended May 4, 1996, the net loss was $6.0 million, $.14
per share, compared to net earnings of $1.2 million, $.03 per share, for the
corresponding period last year.
The following table reflects the activities recorded during the thirteen weeks
ended May 4, 1996 for the $25 million reserve recorded in 1995 related to the
Company's decision to combine its Hechinger Stores and Home Quarters
operations:
<TABLE>
<CAPTION>
Balance Balance
Remaining Utilized in 1996 Remaining
($ in millions) Feb. 3, 1996 Cash Non-cash May 4, 1996
------------ ---- -------- -----------
<S> <C> <C> <C> <C>
Employee termination costs $11.0 $3.2 - $ 7.8
Pension termination and other 7.1 1.9 - 5.2
Disposal of furniture, fixtures and
equipment and other assets 2.0 - $0.9 1.1
----- ---- ---- -----
$20.1 $5.1 $0.9 $14.1
===== ==== ==== =====
</TABLE>
The remaining balance of $14.1 million has been recorded as a current liability
as of May 4, 1996. Management anticipates that the merger will be
substantially completed by the end of fiscal 1996. The Company believes that
the balance remaining in the reserve is adequate to cover future expenses
related to the cost of combining its Hechinger Stores and Home Quarters
operations.
For the thirteen weeks ended May 4, 1996, expenditures for carrying costs of
closed stores associated with the store closing reserve recorded in 1994
totaled $2.7 million. Of the $19.4 million remaining, $11.2 million has been
recorded as a current liability. The Company believes that the balance
remaining in the store closing reserve is adequate to cover future expenses
related to the carrying costs of the closed stores.
In February 1996, the Company's operating subsidiaries entered into a new
senior secured revolving credit facility, which permits borrowings of up to
$200 million, with preauthorization from the lender to utilize the last $25
million. This facility replaces the existing revolving credit facility and all
letter of credit facilities. This new facility is secured by merchandise
inventories and expires in February 1999. Interest on borrowings under this
facility will be at prime plus 1% or LIBOR plus 2.75% at the option of
management. As of May 4, 1996, the Company had outstanding $22.3 million under
this facility.
In February 1996, the Company announced its plans to suspend future dividends.
Cash and cash equivalents were $83.9 million as of May 4, 1996 compared to
$35.8 million as of February 3, 1996. The increases in merchandise inventories
and accounts payable and accrued expenses from year-end are due primarily to
normal spring selling seasonal increases and are consistent with the prior
year. Expenditures for property, furniture and equipment and other assets were
$18.9 million for the thirteen weeks ended May 4, 1996 and $32.0 million for
the corresponding period last year. These expenditures are related primarily
to the Company's store relocation and remodeling programs.
The Company is a party to legal proceedings and claims arising in the ordinary
course of business. Although the outcome of such proceedings and claims cannot
be determined with certainty, management believes that the outcome of such
proceedings and claims will not have a material adverse effect on the Company's
consolidated financial position, results of operations or liquidity.
4
<PAGE> 5
PART II
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DOCUMENT
------ --------
<S> <C>
11 Statement Regarding Computation of Earnings Per Share
99(a) Consolidated Statements of Operations
99(b) Consolidated Balance Sheets
99(c) Consolidated Statements of Cash Flows
99(d) Consolidated Statement of Stockholders' Equity
99(e) Notes to Consolidated Financial Statements
</TABLE>
(b) REPORTS ON FORM 8-K
none.
5
<PAGE> 6
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.
<TABLE>
<S> <C> <C>
Date: June 18, 1996 HECHINGER COMPANY
-----------------
Registrant
/S/W. CLARK McCLELLAND
----------------------
W. Clark McClelland
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
</TABLE>
6
<PAGE> 7
HECHINGER COMPANY
INDEX TO EXHIBITS
FORM 10-Q FOR THIRTEEN WEEKS ENDED MAY 4, 1996
<TABLE>
<CAPTION>
EXHIBIT NO. PAGE
- ----------- ----
<S> <C> <C>
11 Statement Regarding Computation of Earnings Per Share 8
99(a) Consolidated Statements of Operations 9
99(b) Consolidated Balance Sheets 10
99(c) Consolidated Statements of Cash Flows 11
99(d) Consolidated Statements of Stockholders' Equity 12
99(e) Notes to Consolidated Financial Statements 13 - 14
</TABLE>
7
<PAGE> 1
EXHIBIT 11
HECHINGER COMPANY
STATEMENT REGARDING COMPUTATION OF EARNINGS PER SHARE
(unaudited)
<TABLE>
<CAPTION>
13 WEEKS ENDED
MAY 4, 1996 APR. 29, 1995
----------- -------------
<S> <C> <C>
Net (loss) earnings $(5,990,000) $ 1,167,000
Interest on 5-1/2% convertible debentures, net of tax benefit (1) - -
----------- -----------
Net (loss) earnings for primary and fully diluted earnings per share $(5,990,000) $ 1,167,000
=========== ===========
Weighted average shares outstanding $42,176,188 42,100,876
Dilutive effect of stock options and restricted stock and performance
share awards after application of the treasury stock method (1) - 208,907
Additional shares issuable assuming full conversion of the 5-1/2%
debentures into Class A common stock (1) - -
----------- -----------
Common and common equivalent shares outstanding for primary earnings
per share 42,176,188 42,309,783
Additional dilution from stock options and restricted stock and
performance share awards after application of the treasury stock method
(1) - -
Common and common equivalent shares outstanding for fully diluted ----------- -----------
earnings per share 42,176,188 42,309,783
=========== ===========
Primary (loss) earnings per common share ($0.14) $0.03
=========== ===========
Fully diluted (loss) earnings per common share ($0.14) $0.03
=========== ===========
</TABLE>
(1) The 5-1/2% Convertible Subordinated Debentures, stock options, restricted
stock and performance share awards were antidilutive for the 13 weeks ended
May 4, 1996 and April 29, 1995.
8
<PAGE> 1
EXHIBIT 99(a)
HECHINGER COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands except per share data)
<TABLE>
<CAPTION>
13 WEEKS ENDED
MAY 4, 1996 APR. 29, 1995
----------- -------------
<S> <C> <C>
REVENUES
Net sales $561,317 $553,174
Other (principally interest) 516 1,000
-------- --------
Total Revenues 561,833 554,174
COSTS AND EXPENSES
Cost of sales 445,472 433,626
Selling, general and administrative expenses 112,596 111,359
Interest expense 9,755 7,336
-------- --------
Total Costs and Expenses 567,823 552,321
-------- --------
(LOSS) EARNINGS BEFORE INCOME TAXES (5,990) 1,853
INCOME TAX EXPENSE - 686
-------- --------
NET (LOSS) EARNINGS ($5,990) $1,167
======== ========
PRIMARY AND FULLY DILUTED (LOSS)
EARNINGS PER COMMON SHARE ($0.14) $0.03
======== =======
AVERAGE NUMBER OF COMMON AND COMMON
EQUIVALENT SHARES OUTSTANDING:
Primary 42,176 42,310
Fully diluted 42,176 42,310
DIVIDENDS PER SHARE:
Class A common stock $ - $ 0.04
Class B common stock $ - $ 0.02
</TABLE>
See notes to consolidated financial statements.
9
<PAGE> 1
EXHIBIT 99(b)
HECHINGER COMPANY
CONSOLIDATED BALANCE SHEETS
(in thousands except share data)
<TABLE>
<CAPTION>
(unaudited)
MAY 4, 1996 FEB. 3, 1996
------------ ------------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 83,899 $ 35,785
Merchandise inventories 474,309 414,974
Other current assets 84,256 79,533
------------ -----------
Total Current Assets 642,464 530,292
PROPERTY, FURNITURE AND EQUIPMENT, NET 491,310 497,577
COST IN EXCESS OF NET ASSETS ACQUIRED, NET 53,324 53,743
LEASEHOLD ACQUISITION COSTS, NET 48,596 49,128
OTHER ASSETS 31,222 19,681
------------ -----------
TOTAL ASSETS $ 1,266,916 $ 1,150,421
============ ===========
<CAPTION>
(unaudited)
MAY 4, 1996 FEB. 3, 1996
----------- ------------
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Revolving credit facility $ 22,306 $ -
Accounts payable and accrued expenses 414,080 313,067
Current portion of long-term debt and capital lease
obligations 3,723 3,806
------------- -----------
Total Current Liabilities 440,109 316,873
LONG-TERM DEBT 383,687 383,709
CAPITAL LEASE OBLIGATIONS 15,268 15,821
DEFERRED RENT 26,590 26,779
OTHER LONG-TERM LIABILITIES 8,200 8,200
STOCKHOLDERS' EQUITY
Class A common stock, $.10 par value; authorized 50,000,000
shares; issued 31,123,618 and 30,892,581 3,112 3,089
Class B common stock, $.10 par value, authorized 30,000,000 1,120 1,143
shares; issued 11,200,892 and 11,431,929
Additional paid-in capital 238,248 238,248
Retained earnings 152,000 157,990
Unearned compensation (632) (759)
Less treasury stock at cost, 64,797 and 39,325 Class A common
shares and 14,497 and 14,497 Class B common shares (786) (672)
------------- -----------
TOTAL STOCKHOLDERS' EQUITY 393,062 399,039
------------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,266,916 $ 1,150,421
============= ===========
</TABLE>
See notes to consolidated financial statements.
10
<PAGE> 1
EXHIBIT 99(c)
HECHINGER COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
<TABLE>
<CAPTION>
13 WEEKS ENDED
MAY 4, 1996 APR.29,1995
----------- -----------
<S> <C> <C>
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES
Net earnings $ (5,990) $ 1,167
Adjustments to reconcile earnings
to net cash provided by operating activities:
Unusual charges (8,768) (12,972)
Depreciation and amortization 14,473 14,431
Deferred income taxes - 348
Deferred rent expense (189) 772
CHANGES IN OPERATING ASSETS AND LIABILITIES
Merchandise inventories (59,335) (48,102)
Other current assets (4,723) 3,046
Accounts payable and accrued expenses 109,781 105,458
Income taxes payable - (795)
-------- ----------
NET CASH FLOWS FROM OPERATING ACTIVITIES 45,249 63,353
-------- ----------
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
Property, furniture, equipment and other assets:
Additions (18,932) (32,036)
Disposals 136 2,368
Marketable securities:
Purchases - (46,218)
Proceeds from sales - 29,149
-------- ----------
NET CASH FLOWS USED IN INVESTING ACTIVITIES (18,796) (46,737)
-------- ----------
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
Proceeds from revolving credit facility 109,378 -
Payments to revolving credit facility (87,072)
Dividends paid to stockholders - (1,416)
Other (645) (82)
-------- ----------
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES 21,661 (1,498)
-------- ----------
INCREASE IN CASH AND CASH EQUIVALENTS 48,114 15,118
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 35,785 26,252
-------- ----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 83,899 $ 41,370
======== ==========
SUPPLEMENTAL INFORMATION
Cash payments for income taxes $ 364 $ 1,250
Cash payments for interest, net of amount capitalized $ 9,577 $ 9,140
</TABLE>
See notes to consolidated financial statements.
11
<PAGE> 1
Exhibit 99(d)
HECHINGER COMPANY
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(in thousands except share data)
<TABLE>
<CAPTION>
CLASS A CLASS B ADDITIONAL
COMMON COMMON PAID-IN RETAINED UNEARNED
STOCK STOCK CAPITAL EARNINGS COMPENSATION
------- ------- --------- --------- ------------
<S> <C> <C> <C> <C> <C>
BALANCE, JAN. 28, 1995 $3,080 $1,152 $238,182 $240,919 $(1,553)
Restricted stock awards earned - - - - 794
Exercise of stock options including income tax benefit - - 66 - -
Conversions from Class B to Class A common stock 9 (9) - - -
(86,800 Class A common shares)
Purchase of treasury stock (27,391 Class A common shares) - - - - -
Adjustment to fair value of marketable securities - - - 371 -
Cash dividends on common stock:
Class A - $.16 per share - - - (4,931) -
Class B - $.06 per share - - - (733) -
Net loss - - - (77,636) -
------ ------ -------- -------- -------
BALANCE, FEB. 3, 1996 3,089 1,143 238,248 157,990 (759)
Restricted stock awards earned - - - - 127
Conversions from Class B to Class A common stock 23 (23) - - -
(231,037 Class A common shares)
Purchase of treasury stock (25,472 Class A common shares) - - - - -
Net loss - - - (5,990) -
------ ------ -------- -------- -------
BALANCE, MAY 4, 1996 (unaudited) $3,112 $1,120 $238,248 $152,000 $ (632)
====== ====== ======== ======== =======
<CAPTION>
TREASURY
STOCK TOTAL
--------- --------
<S> <C> <C>
BALANCE, JAN. 28, 1995 $(507) $481,273
Restricted stock awards earned - 794
Exercise of stock options including income tax benefit 66 132
Conversions from Class B to Class A common stock - -
(86,800 Class A common shares)
Purchase of treasury stock (27,391 Class A common shares) (231) (231)
Adjustment to fair value of marketable securities - 371
Cash dividends on common stock:
Class A - $.16 per share - (4,931)
Class B - $.06 per share - (733)
Net loss - (77,636)
------ --------
BALANCE, FEB. 3, 1996 (672) 399,039
Restricted stock awards earned - 127
Conversions from Class B to Class A common stock - -
(231,037 Class A common shares)
Purchase of treasury stock (25,472 Class A common shares) (114) (114)
Net loss - (5,990)
------ --------
BALANCE, MAY 4, 1996 (unaudited) $(786) $393,062
====== ========
</TABLE>
See notes to consolidated financial statements.
12
<PAGE> 1
EXHIBIT 99(e)
HECHINGER COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THIRTEEN WEEKS ENDED MAY 4, 1996
(unaudited)
A. BASIS OF PRESENTATION
In the opinion of management of Hechinger Company (the "Company"), the
accompanying unaudited consolidated financial statements include all
adjustments (which consist of normal recurring accruals) considered necessary
for a fair statement of the results for the interim periods presented. The
operating results for the thirteen weeks ended May 4, 1996 are not necessarily
indicative of the results to be expected for the fiscal year ending February 1,
1997.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the amounts reported in the financial statements and accompanying
notes. Actual results could differ from those estimates. The financial
statements presented herein should be read in conjunction with the financial
statements incorporated by reference in the Company's Annual Report on Form
10-K for the year ended February 3, 1996.
B. MERCHANDISE INVENTORY
An actual valuation of inventory under the LIFO method can be made only at the
end of each year based on the inventory levels and costs at that time.
Accordingly, interim LIFO calculations are based on management's estimates of
expected year-end inventory levels and costs. Interim results are subject to
the final year-end LIFO inventory valuation.
All inventories reported at May 4, 1996 and February 3, 1996 were valued using
the LIFO inventory valuation method. If all inventories had been valued under
the FIFO method, which approximates replacement cost, inventories would have
been $22.6 million and $21.5 million higher than reported at May 4, 1996 and
February 3, 1996, respectively.
C. TAXES ON INCOME
For the thirteen weeks ended May 4, 1996, the effective tax rate was 0%
compared to 37.0% for the corresponding period last year. The potential tax
benefit associated with the current period's loss has been offset by a
valuation allowance.
D. UNUSUAL CHARGES
For the thirteen weeks ended May 4, 1996, the Company utilized approximately
$6.0 million of the reserve recorded in 1995 related to the Company's decision
to combine its Hechinger Stores and Home Quarters operations. The remaining
balance of $14.1 million has been recorded as a current liability as of May 4,
1996. Management anticipates that the merger will be substantially completed
by the end of fiscal 1996. The Company believes that the balance remaining in
the reserve is adequate to cover future expenses related to the cost of
combining its Hechinger Stores and Home Quarters operations.
For the thirteen weeks ended May 4, 1996, expenditures for carrying costs of
closed stores associated with the store closing reserve recorded in 1994
totaled $2.7 million. Of the $19.4 million remaining, $11.2 million has been
recorded as a current liability. The Company believes that the balance
remaining in the store closing reserve is adequate to cover future expenses
related to the carrying costs of the closed stores.
13
<PAGE> 2
E. REVOLVING CREDIT FACILITY
In February 1996, the Company's operating subsidiaries entered into a new
senior secured revolving credit facility, which permits borrowings of up to
$200 million, with preauthorization from the lender to utilize the last $25
million. This facility replaces the existing revolving credit facility and all
letter of credit facilities. This new facility is secured by merchandise
inventories and expires in February 1999. Interest on borrowings under this
facility will be at prime plus 1% or LIBOR plus 2.75% at the option of
management. As of May 4, 1996, the Company had outstanding $22.3 million under
this facility.
F. CONTINGENCIES
The Company is a party to legal proceedings and claims arising in the ordinary
course of business. Although the outcome of such proceedings and claims cannot
be determined with certainty, management believes that the outcome of such
proceedings and claims will not have a material adverse effect on the Company's
consolidated financial position, results of operations or liquidity.
14
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> FEB-01-1997
<PERIOD-START> FEB-04-1996
<PERIOD-END> MAY-04-1996
<CASH> 83,899
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 474,309
<CURRENT-ASSETS> 84,256
<PP&E> 491,310<F1>
<DEPRECIATION> 0
<TOTAL-ASSETS> 1,266,916
<CURRENT-LIABILITIES> 440,109
<BONDS> 383,687
0
0
<COMMON> 4,232
<OTHER-SE> 388,830
<TOTAL-LIABILITY-AND-EQUITY> 1,266,916
<SALES> 561,317
<TOTAL-REVENUES> 561,833
<CGS> 445,472
<TOTAL-COSTS> 558,068
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 9,755
<INCOME-PRETAX> (5,990)
<INCOME-TAX> 0
<INCOME-CONTINUING> (5,990)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (5,990)
<EPS-PRIMARY> ($0.14)
<EPS-DILUTED> ($0.14)
<FN>
<F1>Property, furniture and equipment, net of accumulated depreciation
</FN>
</TABLE>
